Peruvian Banks Hit Record Profits in 2025: A 37% Surge

Peruvian financial institutions posted record profits in 2025, driven by economic growth, increased efficiency through digitalization, and a reduction in the central bank’s benchmark interest rate. Combined net profits for the banking sector reached S/ 14,147 million, a 37% increase compared to the S/ 10,325 million reported in 2024, according to data from the Superintendency of Banking, Insurance and Pension Funds (SBS).

The positive trend extended to other financial entities. Municipal savings banks announced net profits of S/ 850 million, doubling the S/ 398 million recorded in 2024 and marking a new high. Financial companies collectively earned S/ 274 million, representing a 27% year-over-year expansion.

Digitalization and Lower Interest Rates

The Peruvian economy’s growth trajectory in 2025 bolstered the payment capacity of both individuals and businesses, contributing to a decline in non-performing loans within the financial system, explained Arturo García, director of the Lima College of Economists. This improvement in asset quality was a key driver of profitability.

Banks and municipal savings banks also benefited from significant gains in operational efficiency, fueled by automation and digitalization initiatives. The Central Reserve Bank (BCR) lowered its reference interest rate from 4.75% to 4.25% between January and December 2025, reducing the cost of funding for financial institutions.

Improved Credit Quality and Reduced Provisions

The positive performance was further supported by a reduction in credit risk provisions. As the economy strengthened, the need for banks to set aside capital to cover potential loan losses diminished, boosting net results, according to Yang Chang, a professor at the University of Piura. Economic growth facilitated increased lending and improved portfolio quality, leading to higher profitability for lending institutions.

Cajas, or municipal savings banks, experienced increased income and sales among their clients due to the economic expansion, which improved repayment behavior in a context of lower funding costs, García added.

Víctor Blas, division strategy and finance manager at Financiera Confianza, stated that 2025 was a “clearly positive year” for the Peruvian financial system. “Banks and microfinance institutions achieved record profit growth, driven by credit recovery, sustained improvement in asset quality, and lower financial costs, in an environment of controlled inflation and cuts in the BCR’s reference rate,” he said.

This allowed the system to overcome the more challenging post-pandemic period and strengthen its solvency.

Morosidad Trends

The evolution of non-performing loans has been a key factor in the improved results of the financial system in 2025, according to Chang. A more dynamic economy led to a significant reduction in provisions for credit risk, which financial institutions are required to maintain against potential borrower defaults.

The positive trend represents a reversal from 2024, when profits fell in 11 of 17 banks and half of microfinance institutions operated at a loss, with non-performing loan rates exceeding 8%. Rural cajas also showed a rebound in net earnings after five consecutive years of combined losses, totaling S/ 7.1 million in 2025. Only one caja reported a loss.

Credit Companies Performance

Credit companies (formerly edpymes) accumulated net profits of S/ 81 million, an 82% annual increase. Chang noted that rural cajas faced greater difficulties in recent years due to their smaller size and structural problems in some entities, which weighed on the sector’s average performance.

Credit companies benefited from the dynamism of consumer spending, which grows faster when the economy expands. Their strategy of specializing in a niche market allowed for a faster recovery in earnings.

Outlook for 2026

Despite the country’s current security challenges, financial institutions achieved significant profits in 2025. However, 2026 brings a new factor that could alter these results: the upcoming elections.

“2026 should be a good year for the financial system, but it all depends on whether the political situation doesn’t create chaos. If the elections result in a disruptive mandate, it could change the credit granting policies currently followed by banks,” Chang commented.

García agrees that this year presents two scenarios. A projected economic growth of around 3%, contained political risks, a reduction in the BCR’s rate, and a continued decline in non-performing loans would lead to good results for the banking sector. However, political noise causing social unrest would lead to less optimistic forecasts.

The outlook is favorable this year, with an economy that could grow by more than 3% and inflation anchored within the target range, which would continue to support credit demand, Blas of Financiera Confianza estimated.