Banco Davivienda (PFDAVVNDA) Q2 2025 earnings summary

Executive summary

• Achieved solid progress in core business for Q2 2025, driven by effective risk and cost management, strong P&L performance, and digital transformation, with 92% digital customers and 18.7 million DaviPlata users.

• Macroeconomic environment in Colombia showed gradual recovery, with 2% GDP growth in April-May and inflation declining to 4.82% as of June.

• Total assets reached $46.6 billion (COP 189.6 trillion) as of June 2025, up 3.4% year-over-year, with gross loans at $35.7 billion, up 3.9% year-over-year.

• Net profit for 2Q25 was COP 434 billion ($103 million), up 49.2% quarter-over-quarter, with annualized ROE at 10.65%.

• Sustainable portfolio reached COP 27.3 trillion, 18.8% of total loans, up 45.4% year-over-year.

Financial highlights

• Loan book grew 1% quarter-over-quarter and nearly 4% year-over-year, with strong commercial and mortgage loan growth and consumer segment recovery.

• Net interest margin (NIM) including FX and derivatives expanded to 5.83%, supported by investment portfolio and FX strategy.

• Cost of risk for the quarter was 2.7%, with provision expenses totaling COP 982 billion; provision expenses dropped 43% year-over-year.

• Cost-to-income ratio at 52.9%, down 239 bps from previous quarter; ROAE at 10.65% for 2Q25.

• CET1 ratio improved to 11.38%, up 21 bps quarterly and 125 bps annually; total capital ratio at 15.58%.

Outlook and guidance

• Updated 2025 guidance: consolidated loan book growth of 6%-8%, commercial/mortgage up 7%-9%, consumer up 4%-6%.

• Expect 90-day PDL ratio to close between 3.5%-4%, NIM (incl. FX/derivatives) at 5.6%-5.8%, cost of risk at 2.4%-2.6%.

• ROE guidance raised to 7%-8.5% for 2025, with sustainable ROE targeted at 14%-16% post-integration by 2028.

• Integration of Scotiabank’s operations in Colombia, Costa Rica, and Panama expected to increase assets by around 40%, pending regulatory approval.

• Focus on digital transformation, sustainable finance, and efficiency initiatives to support future growth.