Banco de Bogotá (BOGOTA) Q2 2024 earnings summary

Executive summary

• Q2-2024 net income was COP 197.4 billion, with ROE at 5% and ROA at 0.6%, maintaining high profitability and market share despite a slight decline.

• Gross loans grew 6.5% year-over-year and 2.7% quarter-over-quarter to COP 104 trillion, led by commercial and mortgage segments.

• Deposits totaled COP 100.6 trillion, up 5.5% quarter-over-quarter and representing 80.2% of total funding.

• Digital transformation drove a 7% increase in monetary transactions, 60% digital channel adoption, and significant growth in QR and PSE payments.

• Sustainability efforts expanded, with green loans up 62% since December 2023, surpassing 2025 targets, and multiple industry recognitions.

Financial highlights

• Net interest income for Q2-2024 was COP 1,340.8 billion, up 4.4% year-over-year and 4.0% sequentially; NIM held steady at 4.5%.

• Fee income ratio rose to 27.6%; efficiency (cost to income) ratio was 53.5%, and cost to assets was 2.6%.

• Gross loans reached COP 104 trillion, with Colombian portfolio up 9.3% year-over-year.

• Allowances for gross loans were 5.7% in Q2-2024.

• Net cost of risk was 2.1% for the quarter.

Outlook and guidance

• Loan growth expected between 7% and 8% for 2024.

• NIM forecasted at 4.5%–4.6%; net cost of risk around 2.4%.

• Fee income ratio expected near 26%; cost to income ratio around 50%.

• ROE guidance for 2024 is 6%–7%.

• Green loans reached COP 4.3 trillion, achieving the 2025 target ahead of schedule, with Net Zero 2030-2050 objectives set for key sectors.