Banco de Bogotá (BOGOTA) Q3 2024 earnings summary

Executive summary

• Net income attributable to shareholders for Q3-2024 was COP 377.7 billion, up 91% from the previous quarter, with ROE/ROAE at 9.3% and ROA/ROAA at 1.0%—the highest since Q1 2023.

• Gross loans grew 0.4% quarter-over-quarter to COP 104.4 trillion, mainly from mortgages and consumer loans, while deposits decreased 2% in the quarter.

• Digital transformation advanced, with 81.6% of transactions digital and 2.55 million active digital clients; Apple Pay launched with Visa.

• Recognized for ESG leadership, including Best ESG Bank in Colombia and most inclusive organization in Latin America.

• Total assets reached COP 146.97 trillion, up 6% year-over-year and 1.1% sequentially.

Financial highlights

• Net interest margin (NIM) was 4.2%, down 31 bps sequentially, due to lower yields and loan mix changes.

• Efficiency ratio improved to 48.6%; cost-to-assets at 2.5%.

• Fee income ratio decreased to 25.4% as fees fell and income rose.

• Net cost of risk was 1.9%, mainly from the consumer segment, with improvement in Colombian consumer portfolio.

• Tier 1 capital ratio at 12.8%; total capital adequacy at 14.9%.

Outlook and guidance

• Loan growth expected at 6–7% for 2024 and around 10% for 2025.

• NIM forecasted at 4.3–4.4% for 2024 and 4.4–4.5% for 2025.

• Net cost of risk projected at 2.3% for 2024 and 2.2% for 2025.

• ROE guidance: 6–7% for 2024, 8–9% for 2025, approaching double digits by year-end 2025.

• Macroeconomic context: Colombia's GDP growth estimated at 1.6% for 2024, inflation projected to decline to 5.1%, and central bank rate expected to fall to 9.25%.