Banco de Bogotá SA posted a 33.7% annual increase in its second-quarter attributable profit, with higher fee and interest income offsetting a rise in provision and operating expenses.
The company booked net income attributable to shareholders of 723.9 billion Colombian pesos, up from 541.4 billion pesos in the year-ago period. The result follows the bank's first-quarter profit rising 14.3% year over year.
In the second quarter, net interest income grew 9.6% to 1.843 trillion pesos from 1.682 trillion pesos a year earlier. The bank's net interest margin improved to 6.0% from 5.9% in the linked quarter and 5.8% a year ago.
Meanwhile, net fees and other services income jumped 15.1% annually to about 1.130 trillion pesos from 981.8 billion pesos. The company attributed higher fee income to more gains from pension management fees and credit card and banking services fees, primarily in Central America.
Banco de Bogotá recorded 606.0 billion pesos in provisions for impairment loss and financial assets, up 14.5% from 529.2 billion pesos in the second quarter of 2018. Operating expenses also increased, rising 6.2% to 1.668 trillion pesos.
The bank's consolidated gross loan portfolio grew 7.0% in the 12 months through June to reach about 109.905 trillion pesos, as consumer credit and mortgages increased 10.5% and 13.3%, respectively.
Its 90-day nonperforming loan ratio came in at 3.0% for the second quarter, up from 2.8% in the first quarter and 2.7% in the prior-year period.
Return on average equity improved to 15.6% from 13.4% a year ago, while return on average assets increased to 2.0% from 1.6%.
As of Aug. 26, US$1 was equivalent to 3,429.50 Colombian pesos.
