Banco de Bogotá SA reported net income attributable to shareholders of COP 390 billion for the second quarter of 2026, marking a return on equity of 10.0%—the first double-digit ROE since Q2 2025. Revenue totaled COP 3.58 trillion, while total assets declined 0.8% quarter-over-quarter to COP 141 trillion. The bank’s net interest margin rose 38 basis points sequentially to 5.0%, supported by a 105 basis-point increase in loan yields to 12.7%, partially offset by a 67 basis-point rise in the cost of funds to 7.3%.
Loan growth accelerated to 3.3% quarter-over-quarter, with the portfolio reaching COP 100.4 trillion, up 10.2% year-over-year. Commercial loans accounted for 63% of the book. Deposits grew 0.7% to COP 104 trillion, maintaining a deposit-to-net-loans ratio of 1.09 times. The net cost of risk increased to 2.1% from 1.6% in Q1 2026, reflecting higher provisions.
CEO Juan Carlos Echeverry highlighted the bank’s resilience amid Colombia’s macroeconomic challenges, noting that Banco de Bogotá’s position remains largely neutral to interest rate movements. The acquisition of Banco Itaú’s retail banking loans and deposits, completed on August 1, 2026, was framed as a strategic move to reinforce the bank’s universal banking model. Echeverry also addressed the recent earthquake in Colombia, stating that Grupo Aval is coordinating relief efforts with local authorities and private-sector partners.
Full-year 2026 guidance was adjusted to reflect one-time integration expenses tied to the Itaú transaction. ROE is now projected between 7% and 8%, down from prior estimates, while loan growth is expected around 14% including inorganic contributions. Net interest margin is forecast to average 4.7%, with the net cost of risk at approximately 2.0%. The bank anticipates annual cost synergies of COP 50 billion to COP 100 billion from the acquisition once 20% to 30% of the acquired cost structure is optimized.
Colombia’s macroeconomic backdrop remains challenging. The central bank held its policy rate at 12% in July after a 75 basis-point hike in June, while inflation moderated slightly to 6.0% from 6.1%. GDP growth is projected at 2.5% for 2026, with the fiscal deficit expected to reach 6.7% of GDP against a target of 5.3%. The exchange rate is seen stabilizing around COP 3,100 per dollar by year-end.
Banco de Bogotá’s share price has gained approximately 45.3% over the past year, trading near COP 38,660 with a P/E ratio of 10.4. The bank maintained a 5.5% dividend yield, supported by 33 consecutive years of payouts.
Digital initiatives continued to drive efficiency gains, with 80% of personal loan disbursements now originated digitally, up from 75% in Q1. A self-service collections portal recovered COP 120 billion in provisions year-to-date, while a new acquiring processor is expected to reduce transaction costs by up to 35%. The bank’s sustainable finance portfolio expanded to COP 24.5 trillion, including COP 7.5 trillion in green financing and COP 17 trillion in social lending. An IFC-backed transition loan of up to $150 million will support energy transition projects and SMEs.
