Credicorp Sets $14.276 Special Dividend, Up 879.1%

Credicorp Ltd. set a special dividend of $14.276 per share, up 879.1% from the previous rate of $1.458. The shares traded ex-dividend on May 18, 2026.

Why the dividend changed

Credicorp’s filing described the distribution as a record-high ordinary dividend based on 2025 results, even though the payment is recorded as a special dividend. The company did not attribute the increase to a stock split, merger or spinoff. The distinction matters because the unusually large percentage change does not establish a comparable recurring rate. Credicorp’s first-quarter filing provides the company’s characterization.

The decision followed a strong 2025. Credicorp reported full-year attributable net income of S/6.93 billion, up 25.9%, and a return on equity of 19.0%. Management cited expanding lending, improving asset quality, lower funding costs and increasing contributions from digital and fee-based services. The group also signed an agreement to acquire Helm Bank, extending its cross-border strategy. Credicorp’s fourth-quarter results detail those developments.

Operating momentum continued before the payment. First-quarter attributable net income reached S/2.06 billion, up 16.1% from a year earlier, while return on equity reached 21.1%. Loans grew 8.2%, the nonperforming-loan ratio declined to 4.3%, and lower provisions reduced the cost of risk to 1.3%. Those results supported the capital-return decision, although Credicorp’s policy requires the board to weigh subsidiary distributions, solvency, capital growth, financial performance and economic conditions. The policy gives the board discretion rather than making the dividend automatic, according to the February 2026 amendment.

Dividend track record

Credicorp’s payment history is uneven, reflecting both changes in annual distributions and occasional additional payments. The company paid $11.011 per share with an ex-dividend date of May 19, 2025. In 2024, two payments totaling $12.21 included $9.288 in May and $2.917 in September. The $14.276 payment in 2026 therefore exceeds each of those individual distributions.

Annual totals show a sharp interruption followed by a multiyear recovery. The total fell 93.1% from $17.61 in 2020 to $1.21 in 2021, the most recent annual cut. It then rose to $3.99 in 2022, $6.78 in 2023 and $12.21 in 2024. The total fell 9.8% to $11.01 in 2025, preventing that recovery from becoming an uninterrupted annual growth record.

The company has one consecutive year of dividend growth, while its five-year annualized dividend growth rate is positive 4.6%. That combination indicates that the long-term direction has improved but the yearly payment remains variable. The 2021 cut and the decline in 2025 are more relevant to consistency than the size of the latest increase alone.

Is the dividend covered?

The dividend consumes 54% of earnings. That level keeps the payout below reported earnings, providing some accounting coverage while leaving the payment exposed to changes in profitability, capital requirements and subsidiary remittances.

SmarterDividends rates the dividend C, with a safety score of 57. The grade falls in the borderline range of 50-65, meaning coverage is neither clearly weak nor comfortably secure. Credicorp’s earnings and capital position support the current payment, but the variable history and board discretion limit confidence that a special-sized distribution will repeat.

Yield and valuation

The forward yield is 3.74%, below the Financial Services sector median of 5.70%. The comparison shows that the large per-share payment does not translate into an above-median sector yield at the current share price of $380.37. The forward annual dividend is $14.41 per share.

SmarterDividends estimates fair value at $601.78 and classifies the shares as undervalued, representing 58% upside to that estimate. The fair-value assessment is separate from dividend safety: valuation describes the relationship between the share price and estimated value, while the C grade addresses the dependability of the distribution.

What to watch

Credicorp’s latest reported quarter showed continued earnings support but also the variables that can affect future distributions. Second-quarter return on equity was 20.3%, loans rose 13.1%, and the nonperforming-loan ratio improved to 4.1%. Cost of risk increased to 1.9%, including additional provisions related to El Niño. Management reconfirmed its 2026 return-on-equity guidance and raised its medium-term expectation, according to the second-quarter filing.

Investors can monitor credit costs, retail-loan growth, subsidiary capital ratios and progress on revenue diversification. These factors feed directly into the board’s dividend-policy tests. Credicorp also scheduled a strategic update for November 17, 2026, focused on its ecosystem strategy, providing the next identified forum for management to discuss growth and capital priorities, according to the company’s announcement.