... ratios declined in 2015 due to changes in accounting standards, the significant depreciation of the local currency, which boosted its U.S. dollar (USD) denominated risk-weighted assets and USD-denominated goodwill deduction from Fitch core capital (FCC), and the consolidation of Grupo Agromercantil Holding. While Fitch expected a slight decline in the bank's capitalization, the FCC ratio fell to 7.16% at March 2016 (December 2014: 10.1%), a metric that is not consistent with the previous rating levels. Sound Performance: In 2015, profitability ratios were slightly better than in 2014 given resilient margins, significant loan growth, and the 32% depreciation of the Colombian peso that resulted in foreign exchange gains and significant gains on forward contracts in foreign currency. Operational profits will keep increasing steadily, allowing the bank to boast competitive profitability ratios. Stable Asset Quality: Asset quality indicators have...
