Banco Davivienda Reports Consolidated Earnings Results for the First Quarter Ended March 31, 2017
May 29, 2017
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Banco Davivienda reported consolidated earnings results for the first quarter ended March 31, 2017. Net profit in the first quarter of 2017 closed at COP 325.9 billion, 39.0% down from the fourth quarter of 2016, mainly due to the net provision expense of COP 485.8 billion as a result of the occurrence of specific risks in the commercial loan portfolio. Compared to net profit of COP 424 billion reported in the first quarter of 2016, profit decreased by 23.2% due to the lower dynamic in the investment portfolio revenue, which dropped 17.0%, and the 9.2% increase in the provision expense compared to the same period of the previous year. Return on average equity (ROAE) at the end of the first quarter of 2017 was 17.0% compared to 15.4% at the end of the first quarter of 2016. Operating income totaled COP 288.8 billion, down 8.0% from COP 314 billion in the first quarter of 2016, driven mainly by the reclassification of the sale of CIFIN for COP 57.4 billion to equity. Profit before taxes was COP 326 billion against COP 424 billion for the same period a year ago. Financial income was COP 2,364 billion against COP 2,117 billion for the same period a year ago. ROAA was 1.8% against 1.6% for the same period a year ago.
Banco Davivienda SA is a Colombia-based banking institution. The Bankâs products and services include savings and current accounts, consumer and commercial loans, credit and debit cards, mortgages, fixed-term deposits, portfolio management, foreign trade financing and a variety of insurance policies, as well as other banking operations to individuals and businesses. As of December 31, 2012, the Bank operated a network of 572 branch offices located nationwide and one in the United States. It also owned such subsidiaries as Fiduciaria Davivienda SA, Dadivalores SA, Bancafe Panama SA and Fiduciaria Cafetera SA, among others. In addition, Grupo Empresarial Bolivar was the Companyâs major shareholder.