First Read: Davivienda Group "1Q26: Weak earnings with ROAE at ~6%; Core..."

研报英文原文证据摘录

First Read: Davivienda Group "1Q26: Weak earnings with ROAE at ~6%; Core..."

Global Research

14 May 2026ab

First Read

Davivienda Group Equities

1Q26: Weak earnings with ROAE at ~6%; Core Colombia

trends showed mixed execution Banks, Ex-S&L

12-month rating Sell

12m price target P25,900.00

How did the results compare vs expectations?

Net income reached COP 305bn, falling below our estimates and exhibiting a strong

sequential decline, with ROAE at just 5.9% (vs. 20.6% in 4Q25, which had been Price (14 May 2026) P22,900

bolstered by non-recurring gains linked to the BNS transaction). Importantly, we RIC: PFDAVIGRP.CN BBG: PFDAVIGR CB

note the full-quarter impact of the wealth tax (~COP 280bn) and a reduced

Trading data and key metrics

contribution from FX and derivatives this quarter. On the operational side, NII

exceeded expectations, benefiting from the first full-quarter consolidation of BNS 52-wk range P33,000.00-22,480.00

operations and favorable repricing dynamics, while fee income also delivered solid Market cap. P11,168b/US$2.96b

results. Conversely, opex came in higher than anticipated, partially driven by Shares o/s 488m (COM)

integration-related expenses. Asset quality trends were somewhat mixed, with the Free float 20%

NPL ratio outperforming expectations but provisioning levels remaining elevated. Avg. daily volume ('000) 83.2

Overall, while underlying dynamics continue to benefit from scale efficiencies Avg. daily value (m) P2,335.9

stemming from the integration, the ROAE remains constrained by execution Common s/h equity (12/25E) P23622b

challenges and regulatory/tax pressures, underpinning our cautious outlook. P/BV (12/25E) 0.6x

Tier 1 ratio 13%

What were the most noteworthy areas in the results?

EPS (UBS, diluted) (COP)