Peru's banks have attracted investors in recent years. And for good reason. With ROEs around 19% and ROAs of around 2%, their Profitability is robust. Not as high as Argentine banks, but less risky.
In fact, many EM funds look to Peruvian banks as a core component of their financials allocation. Regional PFs think the same way.
Loan growth though is far from vibrant while credit spreads have tightened and non-interest revenues are not growing as fast as they once were.
But the key is that despite a less benign cycle, the 3 main players have managed to maintain Profitability metrics at high levels. A pick-up in growth can see improvements.
Such improvements are partly in the price arguably given ratings are punchy according to diverse measures (p/book, franchise value, earnings yield etc).
Their PH Scores™ are pretty good but they have more to do with fundamental progression/quality factors than the valuation input.