...Consistent Financial Performance: Banco de Bogota S.A.'s (Bogota) operating profit to risk- weighted assets ratio remained robust at 2.8%, excluding extraordinary income from Corficolombiana deconsolidation, as of YE16. The deconsolidation of Corficolombiana (CFC) from Bogota's financial statements resulted in extraordinary income influencing total profitability. Profitability should remain stable, with ROAA expected to remain above 1.75% and ROAE inching toward the midteens by YE17, in line with the bank's 1Q17 results. Sound Asset Quality and Reserves: Past-due loan (PDL) ratios (defined as 90+ days past due) deteriorated in 2016 and 1Q17, with PDLs reaching 2.02% of gross loans at March 31. Despite this cyclical deterioration, Fitch Ratings expects Bogota to maintain its asset quality ratios at levels commensurate with its current VR due to the bank's conservative risk culture. Improving Capital Metrics: Capitalization remains the bank's main credit weakness relative to international...
