Banco de Bogotá (BVC: BOGOTA) reported a 10% return on equity in the second quarter of 2026, marking the first double-digit ROE since Q2 2025 and a 2.6 percentage-point increase from the prior quarter. The improvement reflected a 38 basis-point expansion in net interest margin to 5.0%, alongside a 10.2% year-over-year rise in gross loans to COP 100.4 trillion.
Net income attributable to shareholders totaled COP 390.4 billion, while return on assets increased to 1.1% from 0.8% in Q1 2026. The efficiency ratio improved by 130 basis points to 51.3%, though the net cost of risk rose to 2.1% from 1.6%, driven by higher provisions in the commercial segment. Loan yields climbed 105 basis points to 12.7%, while average funding costs increased 67 basis points to 7.3%.
The bank completed the acquisition of Banco Itaú’s retail banking business in Colombia on August 1, adding COP 6.4 trillion in assets and COP 4.5 trillion in liabilities. The transaction is expected to generate annual efficiency gains of COP 50 billion to COP 100 billion once 20% to 30% of the acquired cost structure is integrated. Banco de Bogotá also secured up to USD 150 million in financing from the International Finance Corporation to support Colombia’s energy transition and sustainable construction initiatives.
Credit quality remained broadly stable, with the 90-day past-due loan ratio holding at 3.6%, though the 30-day ratio increased by 21 basis points to 5.1%. The gross loan portfolio was diversified across commercial (62.8%), consumer (22.6%), and mortgage (14.6%) segments. Total deposits grew 10.8% year-over-year to COP 104.0 trillion, with savings accounts rising 23.4%.
Digital origination reached 80% of personal loan disbursements, up from 75% in Q1, while the green loan portfolio expanded 16.7% to COP 7.5 trillion. The bank’s market share in Colombia’s banking system stood at 13.4% for total deposits and 12.7% for gross loans as of May 2026.
Banco de Bogotá revised its full-year 2026 ROE guidance to 7%–8%, down from a prior 7.5%–8.5% range, citing one-time integration costs from the Itaú acquisition. Loan growth is projected at approximately 14%, including inorganic expansion, while net interest margin is expected to average around 4.7%. The bank maintained a dividend yield of 5.5% and a P/E ratio of 10.4, supported by 33 consecutive years of dividend payments.
