Banco de Bogotá reported a 10.0% annualized return on equity for the second quarter of 2026, up from 7.4% in the prior quarter, as the bank completed its acquisition of Itaú’s retail banking business in Colombia and Panama on August 1.
Net income attributable to shareholders totaled COP 390.4 billion, while the net interest margin widened to 5.0%, a 38 basis point improvement quarter-over-quarter. The efficiency ratio improved by 130 basis points to 51.3%, though the cost-to-income ratio was revised upward to a 52%-53% range for the full year. Total assets reached COP 141.1 trillion, with gross loans expanding 10.2% year-over-year to COP 100.4 trillion.
The bank’s commercial loan portfolio, which accounts for 62.8% of total loans, grew 3.3% sequentially, with variable-rate lending comprising roughly 63% of the portfolio. Consumer loans rose 3.1% quarter-over-quarter, while mortgage lending increased 3.6%. Deposits climbed 10.8% year-over-year to COP 104.0 trillion, maintaining a deposit-to-net-loans ratio of 1.09x. The liquidity coverage ratio stood at 104.7% as of June 30, down from 156.5% in the third quarter of 2025.
Credit quality metrics remained stable, with the 90-day past-due loan ratio holding at 3.6%, though the 30-day PDL ratio edged up 21 basis points to 5.1%. The net cost of risk increased to 2.1% from 1.6% in the prior quarter, driven by a rise in commercial lending risk. Charge-offs totaled COP 466 billion, while coverage ratios remained robust at 1.29x for 90-day PDLs and 4.6% of gross loans.
The acquisition added COP 6.4 trillion in assets and COP 4.5 trillion in liabilities in Colombia, alongside USD 4.8 million in assets and USD 103.4 million in liabilities in Panama. Banco de Bogotá now holds a 13.4% market share in total deposits and a 12.7% share in gross loans, with commercial lending representing 15.1% of the market.
Full-year 2026 guidance was adjusted to reflect integration costs, with ROE now projected at 7%-8% versus a prior range of 7.5%-8.5%. Loan growth guidance was maintained at approximately 14%, including inorganic expansion from the Itaú acquisition, while the net interest margin forecast remained unchanged at around 4.7%. The bank expects annual efficiency gains of COP 50 billion to COP 100 billion from the integration.
CEO Juan Carlos Echeverry noted the bank’s improved profitability and emphasized its positioning in a "NIM-neutral" environment regarding interest rates, citing the variable-rate composition of its commercial loan portfolio.
