Banco de Bogotá SA's first-quarter profit increased 50.9% from a year earlier as the bank booked lower tax expenses and higher net interest income.

The lender reported net income attributable to owners of the parent company of 558.4 billion Colombian pesos, up from 370.0 billion pesos earned in the year-ago period.

Its net interest income grew 7.9% year over year to reach about 1.628 trillion pesos from 1.509 trillion pesos. The firm also recorded 493.6 billion pesos in provisions for impairment loss and financial assets, up 3.6% from 476.6 billion pesos in the first quarter of 2016.

The bank's net interest margin reached 6.0%, down from 6.1% in the linked quarter but up from 5.8% in the year-ago period.

Net fees and other services income, meanwhile, improved 3.1% annually, rising to 920.3 billion pesos from 892.7 billion pesos. At the same time, income tax expenses fell 28.8% to 211.3 billion pesos from 296.7 billion pesos.

Banco de Bogotá's consolidated gross loan portfolio expanded 6.5% in the 12 months through March to reach 96.251 trillion pesos at the end of the first quarter, with commercial loans growing 4.9%, consumer loans 9.5% and mortgages 8.2%. The bank's 90-day nonperforming loan ratio came in at 2.0%, compared to 1.7% in the linked quarter and 1.6% a year earlier.

Return on average assets improved to 1.7% from 1.2% a year earlier, while return on average equity jumped to 13.9% from 11.1%.

As of May 25, US$1 was equivalent to 2,900.80 Colombian pesos.