LIMA Nov 7 Peru's biggest financial holding
company, Credicorp, said on Thursday its third-quarter net
income fell 21 percent on the year to $179.4 million because of
a weaker local currency and higher delinquency rates.
Credicorp said while its third-quarter
profit dropped compared with the same period in 2012, it rose
sharply over the second-quarter profit of $54.5 million.
"This bottom line result is back in line with Credicorp's
business performance, though it incorporates the higher cost of
risk reported throughout the year," the company said in a
The local sol currency has slipped this year on
expectations that the U.S. Federal Reserve will stop stimulus
measures that once boosted the sol to historic high levels.
That has affected its businesses denominated in soles and
distorted reported earnings, Credicorp said.
But the firm said the exchange rate was not as problematic
in the third quarter, when delinquent payments by small
businesses and credit card holders increased provisions for loan
losses, hurting profits.
Credicorp controls Peru's largest bank, Banco de Credito
, and also owns a pension fund and an insurance company.