Q2 2026 Banco Davivienda SA Earnings Call Transcript
Key Points
- Banco Davivienda SA (BOG:PFDAVVNDA) delivered a significant improvement in profitability in Q2 2026, with net profit reaching COP830 billion and core ROAE of 13.62% for the quarter.
- Net interest margin (NIM) expanded by 49 basis points to 6.16%, driven by higher loan income and strong investment portfolio performance, reflecting a resilient margin in a higher interest rate environment.
- Asset quality remained stable with the 90-day PDL ratio at 3.64% and cost of risk at 2.14%, supported by disciplined credit risk management and proactive collection strategies.
- DaviPlata continued to strengthen, with average deposits up 31% year-over-year, monetized transactions growing 13% quarterly, and income rising 58% year-over-year, including the successful launch of a fully digital credit card.
- The integration roadmap is advancing according to plan, with expectations of full synergy capture by 2028, targeting a cost-to-income ratio of 43%-45% and ROAE of 14%-16% by 2028-2029.
- Capital position remains sound, with Banco Davivienda's CET1 ratio at 12.13%, providing a comfortable buffer to support growth and the integration process.
- Persistent inflationary pressures and elevated interest rates in Colombia, with inflation rising to 6.14% and policy rate at 12%, create a challenging macroeconomic environment.
- The appreciation of the Colombian peso negatively impacted reported results, with a translation drag on international balances and related results, reducing the value of Central American assets in peso terms.
- Loan growth was moderate, with total gross loans decreasing 0.6% quarterly due to FX effects, and the commercial portfolio saw a slight contraction after excluding FX, reflecting deliberate downsizing decisions.
- The recent earthquake in the region has caused operational disruptions, with about half of the 102 branches in the affected area closed, and potential impacts on the mortgage portfolio and cost of risk are still being assessed.
- The integration process is incurring significant costs, with only 6% of expected synergies realized year-to-date while 27% of expected costs have been incurred, and 2026 remains an investment and transition year.
- The Costa Rican colon appreciation, while protecting capital ratios, generates a negative impact on the P&L, temporarily affecting Central America's reported profits.
Welcome to Davivienda Group's second quarter 2026 earnings conference call. I'm Karen, and I'll be your operator for today's call. Today's presentation is for Investors and analysts only. Therefore, questions from the media will not be addressed.
Today, Mr. Javier Suarez, Chief Executive Officer; and Mr. Pedro Bohorquez, VP of Strategic Risk and Financial Planning, will join us to discuss the quarterly results that have been released.
If you have not yet received a copy of the earnings report and presentation, please visit Davivienda Group's Investor kit or the Financial Information section at daviviendagroup.com. (Operator Instructions) Please note that this conference is being recorded. Afterwards Management will be available for question and answer session.
Before proceeding, let me mention that any forward-looking statements are being made under the safe harbor provided by the Securities Litigation Reform Act of 1995.
Actual performance could differ materially from that anticipated in any forward-looking statements due to macroeconomic conditions, market risks and
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