Key points for investors:
- Corporate actions: Banco de Bogota completed the sale of Multi Financial Group (MFG) on March 18, 2026 for USD 464 million, strengthening capital and sharpening strategic focus. Banco de Bogota also announced the incoming appointment of Juan Carlos Echeverry Garzon as CEO. Grupo Aval is pursuing a major retail expansion via the pending purchase-and-assumption of Itaú's personal banking business in Colombia (adds ~COP 3.3 trillion consumer loans, COP 3.2 trillion mortgages, ~277k customers) subject to imminent regulatory approvals and a 90-day integration plan once cleared.
- Financial results (Q1 2026): Attributable net income COP 336 billion, down 2.3% year-over-year. Results were materially affected by an equity (wealth) tax of COP 312 billion recorded in operating expenses, which reduced attributable net income by ~COP 210 billion and cut ROAE by ~467 bps for the quarter. Excluding the one-time equity tax, continued-operations net income would have been ~COP 561 billion.
- Balance sheet and funding: Gross loans COP 193.6 trillion (+6% y/y); deposits COP 216.8 trillion (+11.7% y/y). Deposits-to-loans ratio ~116%, reflecting a stronger deposit base but pressuring NIM due to higher funding costs. Banks increased retail funding and shortened loan duration to reduce rate sensitivity.
- Margins, costs and asset quality: Consolidated NIM pressured by faster repricing of liabilities; quarterly consolidated NIM on loans ~4.4% (guidance for year also 4.4%). Net interest income recovered q/q but declined y/y. Cost pressures from the monetary tightening cycle and the equity tax increased operating expenses; excluding the equity tax, cost-to-income was 47.3% for the quarter. Credit quality improved: 90-day PDLs 3.13% (improved q/q and y/y), Stage 1 loans 90.3% of portfolio, coverage at 90-day PDLs 137%.
- Nonfinancial businesses and strategic initiatives: Aval Fiduciaria reported strong AUM growth and market share gains (AUM COP ~206.5 trillion; ROE 33%); GOU Payments reached regulatory certifications, pilots underway and a sizeable near-term commercial pipeline. Shared services center (AC) and cloud migration initiatives target efficiency savings (2026 savings goal COP 62 billion; initial run-rate savings $30–40M/year from operational initiatives).
- 2026 guidance highlights: consolidated loan growth ~9.5% (commercial ~6.5%, retail ~14%), consolidated NIM ~3.9% (banking NIM ~4.8%), NIM on loans ~4.4%, net cost of risk ~1.9%, cost-to-assets ~2.85% (including ~9 bps equity-tax impact), fee income ratio ~22%, and return on average equity ~9.25% for 2026 (incorporating ~114 bps impact from the equity tax).
- Risks and outlook: Near-term headwinds from elevated inflation, higher policy rates (benchmark at 11.25% end-March), geopolitical uncertainty, and electoral risk. Management emphasizes balance-sheet resilience, faster loan repricing, diversification of funding, and execution of the 2026–2031 strategy to capture efficiencies and digital transformation gains.
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