Banco Davivienda (PFDAVVNDA) Q3 2025 earnings summary

Executive summary

• Achieved strong recovery and profitability in Q3 2025, with accumulated net profit reaching COP 1.1 trillion, significant year-over-year improvement, and robust digital transformation, including DaviPlata's evolution into a neobank and digital clients comprising 75.8% of the base.

• Corporate restructuring advanced with the establishment of Davivienda Group as the holding company, completion of a share exchange and IPO, and consolidation of ownership to prepare for Scotiabank integration.

• DaviPlata's loan book reached COP 69 billion, up 83.8% quarter-over-quarter and 388% year-over-year, with strong credit quality, expanded product offerings, and recognition as a carbon-neutral digital wallet.

• Sustainable portfolio grew to COP 29.1 trillion, representing 20.1% of gross loans and a 47% year-over-year increase.

• Issued USD 500 million in Tier II subordinated debt at 8.125% in July 2025, supporting capital structure.

Financial highlights

• Pre-tax income reached COP 517 billion, up 17.4% sequentially and 163% year-over-year; accumulated net profit was COP 1.1 trillion, with ROAE of 9.03% for the quarter and 7.77% for the last 12 months.

• Net profit for Q3 was COP 374 billion, down 13.9% quarter-over-quarter due to higher taxes, but underlying profitability improved.

• Gross loans totaled COP 144.6 trillion, up 2.7% year-over-year, with mortgage loans leading at 10% growth.

• NIM (including FX and derivatives) was 5.72% for the quarter and 5.70% for the last 12 months, both higher year-over-year.

• Cost of risk improved to 2.49% (12M), down 178 bps year-over-year; coverage ratio for loans >90 days at 144.3%.

Outlook and guidance

• 2025 loan portfolio growth expected at 4%-6%, with NIM guidance at 5.6%-5.8% and cost of risk at 2.3%-2.5%.

• ROE guidance raised to 8.5%-9% for 2025; CET1 expected at 11%-11.5%, total capital adequacy at 16.5%-17%.

• Non-financial income to grow 3%-5%, operating expenses to rise 4%-5%, with cost-to-income ratio in the mid-50% range.

• Guidance excludes impact from Scotiabank integration; 2026 soft guidance suggests mid to high single-digit loan growth and ROE around 10%.