UPDATE 1-Peru Credicorp reports a 38 pct drop in Q1 profits

(Recasts, adds earnings details, context)

LIMA, May 7 (Reuters) - Credicorp (BAP.N)(BAP.LM), Peru's largest financial holding company, posted a 38 percent drop in first-quarter net profit on Thursday, citing a sharp slowdown in the Peruvian economy.

Net income was $110.6 million, down from $178 million reported in the same period a year ago, the company said.

Credicorp has a 97.3 stake in Banco de Credito, Peru's largest bank and assets in Bolivia.

"This quarter ... the consequent world recession has impacted the Peruvian markets resulting in a very quick slowdown in economic activity in the first quarter which affected our banking core business," the company said.

Credicorp's loan portfolio grew 13.5 percent in the first quarter to some $10.12 billion from a year ago, but dropped 4 percent compared with the last quarter of last year.

Credicorp also reported a fall in contributions from its Bolivian assets.

Net interest income rose 7.6 percent to $205.9 million on the year. (Reporting by Dana Ford; Editing by Steve Orlofsky and Andre Grenon)