Peru's Credicorp cuts 2023 ROE forecasts amid worse El Nino scenario, shares down (updated)

Credicorp

03/11/2023 15:51

(Recasts with adjusted forecast numbers, context)
       Nov 3 (Reuters) - 
    Credicorp  BAP.LM , one of Peru's biggest financial holding
companies, said on Friday it was lowering its Return on Equity
(ROE) forecast for 2023 amid a worse-than-expected economic
environment, and following a drop in third-quarter profits.
    The South American lender revised its 2023 ROE forecast to
around 15.5%, from a previous forecast of around 17.5%.
        It also pushed up its 2023 cost of risk forecast to
2.6-2.9% from a previous forecast of 2.1%-2.5%.
  
        It comes after the company on Thursday reported a 
    6% drop in third-quarter
     net profit.
  
        It also follows the company worsening its forecast for
the El Nino weather phenomenon to "moderate to strong," from a
previous forecast of a "weak" cycle.  
  
    Shares in Peru's Credicorp were down over 5% on Friday
morning.
   

 (Reporting by Isabel Woodford; Editing by Brendan O'Boyle)
 ((Brendan.OBoyle@thomsonreuters.com;))