Davivienda Group: Recovery in motion, recurring earnings normalize, valuation lags

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Davivienda Group: Recovery in motion, recurring earnings normalize, valuation lags

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Davivienda Group

Recovery in motion, recurring earnings

normalize, valuation lags

Maintain Rating: BUY | PO: 33,667.00 COP | Price: 22,900.00 COP

NI above expectations; recurring ROAE at ~10% 14 May 2026

Davivienda Group reported NI of COP$305bn impacted by a non-recurring wealth tax of Equity

COP$280bn related to its Colombian entities. Excluding this item, we estimate recurring

Ernesto Gabilondo >>

earnings of COP$501bn, advancing +72% YoY (-48% QoQ). Results reflected strong core Research Analyst

revenue growth driven by the incorporation of Scotiabank’s operations, as well as Merrill Lynch (Mexico) +52 55 5201 3428

modestly lower-than-expected recurring non-interest expenses and provision charges ernesto.gabilondo@bofa.com

(which were still elevated due to the Scotia’s integration). Recurring ROAE of 9.6% (vs. Mario Pierry

8-10% guided), declined from 20.6% in 4Q25 but was up from 7.3% a year ago. Research Analyst BofAS

+1 646 743 0047

Key operating highlights: positives and negatives mario.pierry@bofa.com

Loan Growth (=): grew 41% YoY (vs. 8–10% guidance), broadly in line with our AntonioResearch RuetteAnalyst >>

expectations, driven by the incorporation of Scotiabank. Growth is expected to normalize Merrill Lynch (Brazil)

toward the company’s guidance by 4Q26. Lending dynamics were stronger in +55antonio.ruette@bofa.com11 2188 4225

commercial loans (+32% YoY vs. +25% in 4Q25) and consumer loans (+56% YoY vs. Augusto Uehara >>

+50% in 4Q25), while mortgage growth remained relatively stable (+44% YoY). Research Analyst

NII (=): increased 37% YoY (+41% QoQ), roughly in line with our estimates but below Merrill+55 11Lynch2188 (Brazil)4651

loan growth.