Banco de Bogotá (BOGOTA) Q1 2025 earnings summary

Executive summary

• Net income attributable to shareholders for Q1 2025 was COP 267.1 billion, with ROA at 0.7% and ROE/ROAE at 6.4%, both down sequentially.

• Gross loans were COP 106.4 trillion, down 0.9% sequentially but up 5.0% year-over-year; deposits rose 0.5% sequentially and 9.9% year-over-year to COP 104.8 trillion.

• Digital transformation accelerated, with a 25%–24.7% increase in digital transactions and new features for retail, corporate, and SME clients.

• Sustainability initiatives advanced, with a green portfolio of COP 5.3 trillion, social loans at COP 14.9 trillion, and Gold-level Zero Waste Certification.

• Macroeconomic conditions improved, with Colombian GDP up 2.7% and inflation/interest rates trending down, though volatility persisted.

Financial highlights

• Net income attributable to shareholders was COP 267.1 billion, down 13.4% from the previous quarter and up 29.2% year-over-year; ROA was 0.7% and ROE/ROAE 6.4%.

• Net interest margin (NIM) was 4.2%, up 15 bps sequentially; lending NIM was 4.8%, investment NIM 1.3%.

• Fee income ratio was 24%, and cost to income (efficiency) ratio was 50.1%; cost to assets was 2.7%.

• Net provision expense rose 29.0% sequentially to COP 590.0 billion; net cost of risk was 2.2%.

• Total assets were COP 149.6 trillion, down 0.8% sequentially and up 7.6% year-over-year.

Outlook and guidance

• Loan growth for 2025 expected at 8–9% or moderate, with NIM around 4.3% and net cost of risk close to 2%.

• Fee income ratio projected at 25%, cost to income at 50%, and ROE/ROAE between 8% and 8.5%.

• Long-term ROE and cost of capital targeted at 13–14% within 12–24 months.

• Management highlights macroeconomic variables such as inflation and central bank rates as key factors impacting provisions and future results.