Peru’s Credicorp (BAP) has been something of a middling performer since my last update.
The shares are up about 10% since early September (excluding
dividends), but then the S&P 500 is up a little more than that and
you could have earned similar returns from other Andean banks like Banco de Chile (BCH) and Banco Santander-Chile (BSAC),
so I don’t feel like Credicorp has really lived up to what I’d have
hoped. Then again, given the weakness in the Peruvian banking sector in
the second half of 2017, it’s not a terrible result either.
As
things stand today, Credicorp is in that gray area of “like the
company, kinda uncertain on the stock.” I think a low double-digit total
return is possible from here, and I do expect double-digit long-term
earnings growth, but the P/TBV is right about where I think it should be
and there’s still some work for management to do building up its retail
lending business and making its dividend/capital return policy more
transparent.
Continue here:
Credicorp Leading The Recovery With Strong Growth And Credit
No comments:
Post a Comment