...Improving Capital: Capital ratios declined after the acquisitions in Central America as risk weighted assets (RWA) increased, while goodwill and other adjustments eroded the capital base. Sustained growth and lower yet positive profitability helped improve capital along with a conservative dividend payout policy. As of September 2014, Davivienda's Fitch core capital ratio was 9.8% and it hovered in the 9.5%-10.0% range during 2014, a level that compares well to that of similarly rated peers. Consistent Performance: Sustained loan growth in Colombia and abroad has driven the bank's performance, which, in spite of the lower profitability of the new subsidiaries, remains healthy. ROAA stood at about 1.72% at September 2014, above the 1.57% at September 2013 and poised to improve gradually in line with the performance of the new subsidiaries. Uneventful Integration: Davivienda's newly acquired subsidiaries have shown an improvement in their performance; they have resumed asset growth and re-balanced...
