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Peru's Credicorp Q3 net income falls 21 pct on year
November 8, 2013 / 1:55 AM / 4 years ago

Peru's Credicorp Q3 net income falls 21 pct on year

LIMA, Nov 7 (Reuters) - 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 statement.

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.

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