Banco Davivienda (PFDAVVNDA) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 results with net profit of COP 291 billion, up 78.7% quarter-over-quarter, driven by improved profitability, risk profile, and effective strategies.

• Advanced digital transformation and sustainability, with DaviPlata reaching 18.7 million customers and sustainable loans at COP 25.5 trillion.

• Maintained cautious guidance due to macroeconomic and political uncertainties, including fiscal and external risks.

Financial highlights

• Net profit reached COP 291 billion, with ROAE at 7.19% and NIM (FX & D) at 5.68%.

• Gross loan portfolio closed at COP 143.6 trillion, up 5.9% year-over-year but down 1.3% quarter-over-quarter.

• Cost of risk improved to 2.41%, reflecting better asset quality.

• Non-financial income grew 1.9% quarter-over-quarter; operating expenses fell 2.8% sequentially but rose 9.6% year-over-year.

• Fee income grew 11.9% year-over-year.

Outlook and guidance

• Loan portfolio expected to grow 6%-8% in 2025; commercial and consumer portfolios 7%-9%, mortgage 4%-6%.

• Asset quality to improve, with 90-day PDL ratio targeted at 3.5%-4% by year-end.

• NIM guidance at 5.6%-5.8%; cost of risk at 2.4%-2.6%; ROAE expected between 5.5%-7.5%.

• Guidance excludes impact of Scotiabank integration.

• Portfolio quality indicators expected to continue improving, with stabilization in consumer lending and mortgage recovery.