Earnings release
Page 1
1
Page 2
SECOND QUARTER 2025 RESULTS / 2Q25 CONTENT Highlights of the Quarter 3 Additional Relevant Events 3 1. MACROECONOMIC ENVIRONMENT 4 1.1. Colombia 4 1.2. Central America 4 2. SUSTAINABLE MANAGEMENT (ESG) 6 3. DIGITAL TRANSFORMATION AND DAVIPLATA 9 4. CONSOLIDATED FINANCIAL RESULTS 10 4.1. Main Figures and Ratios 10 4.2. Statement of Financial Position 11 4.2.1. Assets 11 4.2.2. Gross Loans 12 4.2.3. Asset Quality 13 4.2.4. Coverage 14 4.2.5. Funding Sources 15 4.2.6. Equity and Regulatory Capital 16 4.3. Income Statement 17 4.3.1. Net Profit 18 4.3.2. Gross Financial Margin 19 4.3.3. Provision Expenses 20 4.3.4. Non-Financial Income 21 4.3.5. Operating Expenses 22 4.3.6. Taxes 23 5. INDIVIDUAL FINANCIAL RESULTS 23 5.1. Statement of Financial Position 24 5.1.1. Assets 24 5.1.2. Liabilities and Equity 25 5.2. Income Statement 25 6. RISK MANAGEMENT 27 6.1. Market Risk 27 6.2. Credit Risk 29 6.3. Interest Rate Risk in the Banking Book 30 6.4. Other Risk Management Systems 31 6.5. Credit Risk Ratings 31 7. SUBSEQUENT EVENTS 32 7.1. Consolidated Financial Statements 32 7.2. Individual Financial Statements 32 8. CURRENT ISSUANCES 32 8.1. Shares 32 8.2. Bonds 32 8.3. Term Deposits 35 9. GLOSSARY 35 2
Page 3
SECOND QUARTER 2025 RESULTS / 2Q25 Bogotá, Colombia. August 14, 2025 – Banco Davivienda S.A. (BVC: PFDAVVNDA, BCS: DAVIVIENCL, SGX: DAVIVI) announces its Second Quarter 2025 Results. This report has been prepared following the instructions given by the Decree 151 of 2021 of the Ministry of Finance and Public Credit, the External Circular 012 of 2022 and the External Circular 031 of 2021 of the Financial Superintendence of Colombia, which regulates it. The consolidated financial statements have been prepared following International Financial Reporting Standards (IFRS) in Colombian Pesos (COP). Highlights of the Quarter ▪ DaviPlata closed the second quarter of 2025 with positive results. The average balance of low-value deposits stood at COP 1.1 trillion, while platform revenues totaled approximately COP 50 billion for the second quarter of the year. ▪ The sustainable portfolio reached COP 27.3 trillion, representing 18.8% of the consolidated gross loan portfolio, increasing by 6.9% in the quarter and by 45.4% year-over-year. ▪ As of June 2025, Davivienda had presence in six countries, approximately 25.2 million customers, more than 17,000 employees, 653 branches, and over 2,800 ATMs. Additional Relevant Events 1 ▪ In July 2025, Banco Davivienda successfully issued and placed USD 500 million in Tier II subordinated debt instruments, with a coupon rate of 8.125%. Individual Financial Statements 2 ▪ The gross loan portfolio in Colombia closed at COP 108.4 trillion, increasing 2.1% during the quarter and 4.9% year-over-year, mainly driven by growth in the commercial and mortgage loan portfolios. ▪ Capital adequacy ratios reflect Banco Daviviendaʼs solid capital position in Colombia. Common Equity Tier I Ratio (CET1) stood at 12.25%, (5.25 percentage points above the regulatory minimum), and Total Capital Adequacy Ratio was 18.07% (6.57 percentage points above the regulatory minimum). ▪ Net profit for 2Q25 totaled COP 438 billion, increasing by 66.9% quarter-over-quarter, reflecting higher financial income, lower financial expenses, and reduced operating expenses. Accumulated Net profit as of June 2025 reached COP 700 billion, driven by lower financial and provision expenses. Consolidated Financial Statements 3 ▪ Gross loan portfolio closed at COP 145.1 trillion, increasing 1.0% in the quarter and 3.9% year over year, driven by growth in the commercial and mortgage portfolios. ▪ The Common Equity Tier I Ratio (CET1) stood at 11.38%, 4.38 percentage points above the regulatory minimum, while the Total Capital Adequacy Ratio closed at 15.58%, 4.08 percentage points above the minimum requirement. ▪ Consolidated net profit for the quarter reached COP 434 billion, increasing 49.2% quarter-on-quarter, supported by positive trends in investment income and in foreign exchange and derivatives, as well as lower financial expenses and operating costs. Accumulated net profit as of June 2025 reached COP 724 billion, driven by lower financial expenses and a reduction in provision expenses. 3 Consolidated Financial Statements exhibit the result of Banco Davivienda S.A and its local and international subsidiaries, under IFRS accounting standards. 2 The Individual Financial Statements exhibit the result of Banco Davivienda S.A. in Colombia, under local accounting standards (IFRS with some adjustments of the Financial Superintendence of Colombia). 1 The highlights presented in this section are subsequent events of this report (2Q25). 3
Page 4
SECOND QUARTER 2025 RESULTS / 2Q25 ▪ Key financial indicators for the quarter were: NIM FX+D: 5.83%; Cost of Risk (CoR): 2.71%; ROAE: 10.65%. 1. MACROECONOMIC ENVIRONMENT 1.1. Colombia During the second quarter of 2025, the Colombian economy showed signs of recovery. According to the Economic Activity Indicator (ISE), which includes data for April and May, the average annual growth rate for these two months was 2.0%, exceeding market expectations. This result was mainly driven by tertiary activities, which grew by 3.4%, offsetting contractions in primary (-1.2%) and secondary (-2.3%) activities. Available indexes suggest that during the second quarter of 2025, the Colombian economy consolidated a positive dynamic, supported by the gradual recovery in consumption, strong performance in the services sector, and improved confidence and market liquidity conditions. June is estimated to have been the most dynamic month of the quarter, driven by sectors such as financial and insurance services; commerce, transportation, accommodation, and food services; as well as public administration, education, health, and cultural activities. Additionally, several consumption-related indicators showed signs of recovery, including vehicle and housing sales, credit card spending, and consumer confidence, all in line with declining inflation and interest rates in recent months. Annual inflation stood at 4.82% in June, down from 5.09% in March. Upward pressures in segments such as housing, transportation, and food were offset by a decrease in core inflation, which closed at 4.85%. In April, the Central Bank reduced its policy rate to 9.25%. However, expectations for further rate cuts moderated, with the year-end rate forecast revised to 8.50%, compared to 7.75% projected in March. Deposit rates in the financial system continued to decline by the end of June, with DTF and the 180-day and 360-day benchmark rates standing at 8.90%, 9.13%, and 9.53%, respectively. Average lending rates also declined, closing the quarter at 19.1% for consumer loans, 11.6% for mortgages, and 12.2% for commercial loans. Total credit grew by 4.7% year-over-year, accelerating from the 3.6% recorded in March. The consumer loan portfolio returned to positive growth by the end of June and early July, after 19 consecutive months of nominal contractions. This segment posted a 0.6% annual increase in May, consolidating its recovery. Commercial and mortgage loan portfolios also showed stronger dynamics, growing by 5.4% and 9.7%, respectively. The quality of the loan portfolio, measured by loans past due over 90 days, improved across most segments. The consumer loan indicator decreased from 3.96% to 3.73%, the mortgage portfolio improved by 9 bps to 3.20%, while the commercial loan indicator remained stable around 3.00%. Overall, total loan quality improved by 8 bps, reaching 3.32%. The exchange rate appreciated during the quarter, closing at COP 4,069.67, compared to COP 4,192.57 at the end of March. This appreciation was explained by the global weakening of the U.S. dollar, due to concerns over U.S. trade policy and its projected fiscal debt increase. 1.2. Central America During the second quarter of 2025, economic activity in Central America continued to show signs of strength, supported by macroeconomic stability, contained inflation, and the recovery of private consumption. Although the global environment remained challenging due to financial market volatility, countries in the region preserved market confidence and sustained growth, driven by the strong performance of remittances, the moderation of international commodity prices, and a more flexible monetary policy stance. 4
Page 5
SECOND QUARTER 2025 RESULTS / 2Q25 1.2.1. Costa Rica Costa Ricaʼs economy maintained a solid performance during the second quarter of 2025, driven by domestic demand and the recovery of private consumption. The Monthly Economic Activity Index (IMAE) recorded average growth of 4.2% during the quarter, with strong performance in the services, commerce, and manufacturing sectors. Annual inflation stood at 1.3% as of June, below the Central Bank of Costa Ricaʼs (BCCR) target range, allowing the policy interest rate to remain at low levels. The BCCR held the policy rate at 4.75% during the quarter, following rate cuts in previous periods, supported by stable prices and reduced exchange rate pressures. The exchange rate of the Costa Rican colón versus the U.S. dollar showed lower volatility during the quarter, fluctuating between CRC 503.6 and CRC 511.4. By June, the colón had appreciated 1% year-to-date, favored by greater foreign currency availability in the private exchange market. However, by the end of July, the colón had depreciated to CRC 508.8 per USD, equivalent to a quarterly depreciation of around 1%. In the financial sector, interest rates remained stable, and total credit grew by 5.6% year-over-year, mainly driven by consumer loans. Credit quality remained under control, with no significant deterioration in delinquency indicators during the quarter. 1.2.2. El Salvador During the second quarter of 2025, El Salvadorʼs economy continued its growth trajectory, supported by strong private consumption, steady remittance inflows, and the recovery of key sectors such as commerce, services, and construction. The Economic Activity Volume Index (IVAE) recorded average year-over-year growth of 3.5% during the quarter. Annual inflation remained contained, closing June at 1.6%, reflecting stable food and fuel prices. This trend helped preserve household purchasing power and further supported positive consumption dynamics. The Salvadorian financial system remained stable, with adequate liquidity and moderate credit growth. The total loan portfolio increased by 6.2% year-over-year, with stronger performance in the consumer and mortgage segments. Credit quality remained under control, with no signs of significant deterioration. The exchange rate remained fixed against the U.S. dollar, consistent with the official dollarization framework. Business and consumer confidence improved gradually, reflecting a more favorable domestic environment and positive expectations for economic activity. 1.2.3. Honduras During the second quarter of 2025, the Honduran economy continued to perform positively, with the Monthly Economic Activity Index (IMAE) posting average year-over-year growth of 3.8%, driven by the recovery of the agro-industrial sector, commerce, and financial services. Annual inflation reached 4.7% during the month of June, in line with the Central Bank of Hondurasʼ target range. This moderation allowed the monetary policy rate to remain at 3.00%, unchanged since the second half of 2024, supporting favorable conditions for credit and consumption. The exchange rate remained relatively stable, closing the quarter at HNL 24.7 per USD, reflecting a slight depreciation compared to the previous quarter. This behavior was influenced by remittance inflows, external trade dynamics, and the Central Bankʼs regulated intervention in the foreign exchange market. The Honduran financial system maintained adequate levels of liquidity and solvency. The total loan portfolio grew by 5.3% year-over-year, mainly supported by commercial lending. Credit quality indicators remained stable, with no material changes in delinquency levels. 5
Page 6
SECOND QUARTER 2025 RESULTS / 2Q25 1.2.4. Panama The Panamanian economy continued to consolidate its recovery during the second quarter of 2025, with the Monthly Economic Activity Index (IMAE) posting average year-over-year growth of 5.1%, driven by the rebound in trade, transportation, logistics, and financial services. Annual inflation stood at 1.2% at the end of June, reflecting stable domestic prices and reduced imported inflation, supported by regional currency appreciation and stability in international oil and food prices. The Panamanian banking system maintained a solid position, with adequate liquidity and sustained credit growth. The total loan portfolio increased by 6.5% year-over-year, with stronger activity in the commercial and mortgage segments. Loan quality indicators remained stable and at healthy levels, with no signs of material deterioration. Business confidence strengthened, supported by the recovery in the external sector, institutional stability, and improved prospects for private investment. 2. SUSTAINABLE MANAGEMENT (ESG) In line with its higher purpose of enriching life with integrity, Banco Davivienda continues to strengthen its commitment to making the world a more prosperous, inclusive, and green place by actively managing its sustainable business strategy. Accordingly, during the second quarter of 2025, Davivienda continued to expand its sustainable financing portfolio. The consolidated sustainable loan portfolio closed at COP 27.3 trillion, representing 18.8% of the Bankʼs total loan portfolio, increasing 6.9% compared to the previous quarter and 45.4% year-over-year. The green portfolio accounted for 29.3% (COP 8 trillion) of total sustainable financing, increasing 33.4% compared to the same period in 2024. This reflects Daviviendaʼs ongoing position as a key partner in the energy transition of the countries where it operates, through its financing offering for energy efficiency projects. The social portfolio represented 70% (COP 19.1 trillion) of the total sustainable portfolio, increasing 11.3% quarter-over-quarter and 49.5% year-over-year, mainly driven by participation in large social infrastructure projects that contribute to the economic and productive development of the countries in which we operate. The remaining balance of the portfolio corresponds to sustainability-linked loans (COP 0.2 trillion). On the other hand, sustainable funding reached a balance of COP 8.4 trillion, representing a 5.9% growth compared to the previous year. This performance is mainly explained by the issuance of the Biodiversity Bond to the International Finance Corporation, as well as the signing of a loan with the Andean Development Corporation (CAF), the proceeds of which are intended to mobilize financing for projects for small and medium-sized enterprises (SMEs), among others, in Colombia. In Central America, in line with its commitment to promoting socioeconomic development, building and protecting assets, and improving the financial well-being of women-led SMEs, Banco Davivienda launched the “Mi Empresa Mujer” program, which promotes access to financing and technical training for small businesses. On the financing front, the program has established strategic alliances to strengthen the guarantee offering that supports SME loans. In compliance with the instructions set out in External Circular 031 of 2021, Davivienda reports that there were no material changes to its practices, processes, policies, or indicators related to social and environmental matters, including climate-related issues, during the period from April to June 2025. Regarding double materiality, the Bank reports no material changes to the topics defined and disclosed in its 2024 year-end report. Similarly, there are no material changes to its climate strategy report under the Task Force on Climate-Related Financial Disclosures (TCFD) framework, as this is an assessment carried out on an annual basis. Finally, the Bank presents the indicators of the Sustainability Accounting Standards Board (SASB) standard for commercial banks, implemented by Banco Davivienda, which are monitored and reported quarterly in relation to the management of social and environmental criteria, including climate change. 6
Page 7
SECOND QUARTER 2025 RESULTS / 2Q25 Generation of financial inclusion and capacity FN-CB-240a.1 (1) Number and (2) amount of qualified loans for programs designed to promote small business and community development. (1) Number of outstanding obligations: 103,000 (2) Amount: COP 6,079,374,743,830 FN-CB-240a.2 (1) Number and (2) amount of non-performing and past due loans qualified for programs designed to promote small businesses and community development. Past due ratio > 30 days: No. of loans: 12,355 Amount: COP 870,034,024,328 Non-performing loans ratio > 90 days: No. of loans: 10,336 Amount: COP 764,688,066,019 (Information on small and medium-sized companies with sales up to COP 20,000,000,000 per year) FN-CB-240a.3 Number of no-cost retail checking accounts provided to previously unbanked or underbanked customers. 4,508,603 as of June 30th, 2025. FN-CB-240a.4 Number of participants in financial education initiatives for unbanked, underbanked and underserved clients. 1. Young clients: 895,643 2. Financial inclusion population: 2,700,628 (DaviPlata) 3. Beneficiaries of government subsidies: 215,475 4. No Clients: 130,034 In addition, and voluntarily, Davivienda includes the reporting of the indicators of its subsidiary in Colombia Fiduciaria Davivienda, under the SASB standards for Asset Management and Custody Activities, which are presented below: Employee Diversity & Inclusion FN-AC-330a.1 Percentage of gender and racial/ethnic representation in (1) executive management (2) non-executive management, (3) professionals, and (4) all other employees. 7
Page 8
SECOND QUARTER 2025 RESULTS / 2Q25 Incorporation of Environmental, Social and Governance Factors in Asset Management & Custody FN-AC-410a.1 Amount of assets under management, by asset class, that employ (1) integration of environmental, social, and corporate governance (ESG) issues, (2) sustainability-themed investing, and (3) screening. 1. Total assets under management (AUM): COP 21 trillion Fixed income AUM: COP 20.56 trillion Equity AUM: COP 455 billion 2. Total AUM: COP 55.9 billion Portafolio Acciones Global: 2,851 clients and AUM of COP 33.1 billion Portafolio Sostenible Global: 1,433 clients and AUM of COP 22.8 billion Systemic Risk Management FN-AC-550a.1 Percentage of assets in open-end funds managed by liquidity classification category. Fiduciaria Davivienda has 5 open-end collective investment funds, which by regulation have a liquidity classification pursuant to the application of the regulatory LCR (Liquidity Coverage Ratio) of Chapter XXXI, Annex 11, as follows: 2 money market funds comprising total assets under management (AUM) of COP 1.6 trillion; and 3 balanced funds with AUM of COP 7.8 trillion Activity parameters FN-AC-000.A (1) Total registered assets and (2) total non-registered assets under management (AUM). Vehicles in which the management (investment decision making) is exercised by Fiduciaria Davivienda, Collective Investment Fund + Voluntary Pension Funds + Stand-Alone Trusts/Assignment + Consortiums/Pension Plans Total: COP 20.9 trillion Collective Investment Fund: COP 9.4 trillion. Voluntary Pension Funds: COP 3.5 trillion. Stand-Alone Trusts: COP 2.5 trillion Consortiums/Pensions: COP 5.5 trillion FN-AC-000.B Total assets under custody and supervision. Assets in investment trusts (fiduciary assets). Collective Investment Fund: COP 9.2 trillion. Similarly, the Trust Company continues to advance the integration of sustainable development dimensions into its indicators, an exercise that will result in a materiality analysis and the prioritization of the entityʼs material topics, without this representing a material change in the processes, procedures, or indicators in the fourth quarter. In addition, there are no material changes to what was reported regarding Fiduciaria Colombiaʼs climate strategy, following the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) framework, as this is an exercise carried out on an annual basis. In terms of Corporate Governance, during the second quarter of 2025, within the framework of the subscription agreement for the Biodiversity Ordinary Bonds entered into with the International Finance Corporation (IFC), on April 23, 2025, Banco Davivienda S.A. made available to this entity, in its capacity as investor, the Public Offering Notice for the Biodiversity Bonds addressed to the Second Market, whose issuance would be placed for the amount of COP 210,550,000,000. Subsequently, on April 24, 2025, the Public Offering process for the issuance and placement 8
Page 9
SECOND QUARTER 2025 RESULTS / 2Q25 of the Biodiversity Ordinary Bonds for COP 210,550,000,000 was completed, and the entire amount was allocated to the International Finance Corporation (IFC). On April 30, 2025, Banco Davivienda S.A. announced an increase in its direct equity investment in Holding Davivienda Internacional S.A. and its indirect equity investment in Banco Davivienda Internacional (Panamá) S.A. In addition, on April 30, 2025, Banco Davivienda S.A. capitalized its subsidiary Corporación Financiera Davivienda S.A. in the amount of COP 90,000,000,342. Regarding changes in Directors and Senior Management, Banco Davivienda S.A. announced the resignation of Danilo Cortés Cortés as Vice President of Audit, and on June 10, 2025, the Board of Directors approved the appointment of Herbert Francisco Dulce Ospina as the Bankʼs Internal Auditor. Finally, on June 24, 2025, Banco Davivienda S.A. announced that, as part of its global multilatina strategy, the Board of Directors authorized that Davivienda Group S.A. (incorporated in Panama) would serve as the holding company to integrate into Davivienda the operations of Scotiabank in Colombia, Costa Rica, and Panama. In addition to the situations mentioned above, during the second quarter of 2025, there were no material changes in Corporate Governance that affect or modify the Year-End Periodic Report / Annual Report with respect to the Corporate Governance chapter. 3. DIGITAL TRANSFORMATION AND DAVIPLATA As of June 2025, 92% of the Bankʼs consolidated clients were considered digital. In Colombia, this figure reached 94%, 0.7 percentage points above the level recorded in the previous year. In Central America, the share of digital clients stood at 75.3%, increasing 3.9 percentage points year-over-year. In Colombia, the balance of digital credit products increased by 5.6% during the quarter and 10.6% year-over-year, 4 reaching COP 10.2 trillion. This growth was primarily driven by improved disbursement dynamics in the consumer and mortgage portfolios. The balance of digital deposits stood at COP 12.4 trillion, growing 16.1% 5 quarter-over-quarter and 73.2% year-over-year, explained by a higher balance of digital savings and term deposit accounts, alongside stronger adoption of digital channels over the past year. Lastly, digital investment products 6 reached COP 1.6 trillion, growing 6.6% during the quarter and 23.1% year-over-year. The market continues to offer attractive returns, supporting sustained growth throughout the year. During the second quarter of 2025, 67% of monetary transactions in Colombia were carried out through digital channels. In Central America, digital monetary transactions represented 37% of the total. Regarding Daviplata, the average monthly balance of low-value deposits reached COP 1.1 trillion during the quarter, increasing 5.0% quarter-over-quarter and 17.6% year-over-year. The portfolio balance reached COP 37.6 billion, growing 90.5% during the quarter and 125.3% compared to the previous year, mainly driven by the expansion of the nanocredit segment. Quarterly revenues totaled approximately COP 49.9 billion, increasing 16% compared to the first quarter of the year, mainly as a result of a higher transactional income, followed by higher income from the loan portfolio, and lastly, higher income from FTPs . Year-to-Year, Daviplataʼs revenues grow approximately 7.6%. Platform revenues totaled 7 COP 92.7 billion for the year-to-year, rising 6.0%, driven by higher transactional and loan portfolio income. Total monetary transactions in the quarter surpassed 181 million, increasing 6.2% quarter-over-quarter and 19.5% year-over-year. Total purchases made through the platform reached COP 4.6 trillion, growing 6.0% during the quarter and 25.2% year-over-year, driven by a significant increase in merchant billing during the quarter. 7 Fund Transfer pricing (FTP) refers to the revenue generated by Daviplata as a result of providing its deposits to Davivienda for funding purposes 6 Digital investment includes voluntary pension funds and collective investment funds. 5 Digital funding includes: Mobile Account, CDATs and DaviPlata. 4 Digital credit products include: mobile consumer and housing credit products, and Daviplata loans. 9
Page 10
SECOND QUARTER 2025 RESULTS / 2Q25 4. CONSOLIDATED FINANCIAL RESULTS 4.1. Main Figures and Ratios Statement of Financial Position (COP Billion) % Chg. Assets 2Q24 1Q25 2Q25 Q/Q Y/Y Cash and Interbank Funds 16,345 17,926 16,110 -10.1 -1.4 Net Investments 21,305 23,599 23,100 -2.1 8.4 Gross Loan Portfolio 139,628 143,586 145,088 1.0 3.9 Loan Loss Reserves -5,941 -5,498 -5,594 1.7 -5.8 Other Assets 11,979 10,262 10,847 5.7 -9.4 Total Assets 183,316 189,875 189,550 -0.2 3.4 Liabilities Repos and Interbank Liabilities 5,403 3,040 2,646 -13.0 -51.0 Demand Deposits 61,809 66,286 64,631 -2.5 4.6 Term Deposits 66,441 72,420 73,983 2.2 11.4 Bonds 12,333 10,639 10,181 -4.3 -17.4 Credits 14,509 15,345 14,399 -6.2 -0.8 Other Liabilities 7,345 5,991 7,298 21.8 -0.6 Total Liabilities 167,840 173,721 173,138 -0.3 3.2 Equity Non-controlling Interest 186 203 196 -3.4 5.2 Equity 15,290 15,952 16,216 1.7 6.1 Total Equity 15,476 16,154 16,412 1.6 6.0 Total Liabilities and Equity 183,316 189,875 189,550 -0.2 3.4 Income Statement Quarterly Figures % Chg. Accumulated Figures % Chg. (COP Billion) 2Q24 1Q25 2Q25 Q/Q Y/Y 2Q24 2Q25 Y/Y Interest Income 5,077 4,888 4,882 -0.1 -3.8 10,354 9,770 -5.6 Financial Expenses 2,906 2,618 2,563 -2.1 -11.8 5,943 5,181 -12.8 Gross Financial Margin 2,171 2,270 2,319 2.2 6.8 4,410 4,589 4.0 Net Provision Expenses 1,488 864 982 13.6 -34.0 3,240 1,846 -43.0 Net Interest Margin 683 1,406 1,337 -4.9 95.7 1,171 2,743 134.3 Exchange and Derivatives 145 67 100 49.4 -31.2 103 167 62.1 Non Financial Income 563 620 597 -3.7 6.2 1,216 1,218 0.1 Operating Expenses 1,546 1,612 1,594 -1.1 3.1 3,016 3,206 6.3 Result Before Taxes -155 481 440 -8.6 N.A. -527 921 N.A. Income Tax -81 191 6 -96.8 N.A. -165 197 N.A. Net Result -74 291 434 49.2 N.A. -362 724 N.A. 10
Page 11
SECOND QUARTER 2025 RESULTS / 2Q25 Bps. Chg 12 Months 2Q24 1Q25 2Q25 Q/Q Y/Y NIM 5.55% 5.43% 5.44% 1 -11 NIM FX+D 5.55% 5.65% 5.63% -2 8 Cost of Risk 4.72% 3.00% 2.62% -38 -210 Cost-to-Income 55.2% 55.5% 55.3% -24 15 Cost-to-Assets 3.36% 3.42% 3.40% -2 4 ROAE -6.52% 3.10% 6.23% 313 1,275 ROAA -0.55% 0.26% 0.53% 27 109 Bps. Chg Annualized Quarter 2Q24 1Q25 2Q25 Q/Q Y/Y NIM 5.54% 5.52% 5.59% 7 5 NIM FX+D 5.91% 5.68% 5.83% 15 -8 Cost of Risk 4.26% 2.41% 2.71% 30 -156 Cost-to-Income 53.7% 55.3% 52.9% -239 -84 Cost-to-Assets 3.44% 3.38% 3.36% -2 -8 ROAE -1.92% 7.19% 10.65% 346 1,258 ROAA -0.16% 0.61% 0.91% 30 108 4.2. Statement of Financial Position 4.2.1. Assets Consolidated (COP Billion) Colombia (COP Billion) Central America (USD Million) % Chg. % Chg. % Chg. Assets 2Q24 1Q25 2Q25 Q/Q Y/Y 2Q25 Q/Q Y/Y 2Q25 Q/Q Y/Y Cash and Interbank Funds 16,345 17,926 16,110 -10.1 -1.4 8,374 -16.2 -3.9 1,901 0.4 3.3 Investments 21,305 23,599 23,100 -2.1 8.4 23,149 -1.6 20.1 1,729 1.5 15.1 Gross Loans Portfolio 139,628 143,586 145,088 1.0 3.9 111,565 2.1 4.4 8,237 0.7 4.2 Loan Loss Reserves -5,941 -5,498 -5,594 1.7 -5.8 -4,590 1.0 -9.7 -247 8.7 18.9 Other Assets 11,979 10,262 10,847 5.7 -9.4 8,780 8.6 -8.8 508 -2.2 2.2 Total Assets 183,316 189,875 189,550 -0.2 3.4 147,278 0.6 5.7 12,128 0.5 5.1 Q/Q Performance: Total assets amounted to COP 189.5 trillion, decreasing 0.2% during the quarter. Excluding the effect of the Colombian peso appreciation (+2.9%), assets would have increased 1.1%. Cash and interbank funds totaled COP 16.1 trillion, decreasing 10.1% compared to the previous quarter. This variation was mainly driven by lower balances with foreign correspondents, partially offset by an increase in positions in the local money market. The investment portfolio closed at COP 23.1 trillion, declining 2.1% during the quarter. This was mostly explained by the maturity of fixed income securities in Colombia. Gross loans reached COP 145.1 trillion, increasing 1.0% quarter-over-quarter, primarily due to the strong performance of the commercial and mortgage portfolios. Loan-loss provisions increased 1.7% over the quarter, reaching COP 5.6 trillion, mainly reflecting: i) the Bankʼs commitment to maintaining coverage levels in the commercial and consumer portfolios, and ii) partially offset by charge-offs made during the quarter. 11
Page 12
SECOND QUARTER 2025 RESULTS / 2Q25 Finally, other assets increased 5.7% in the quarter, mainly due to a higher balance of accounts receivable in Colombia. Y/Y Performance: Total assets increased 3.4% year-over-year. Excluding the effect of the Colombian peso appreciation during the period (+1.9%), total assets would have grown 4.2%. Cash and interbank funds declined 1.4%, mainly explained by Colombia due to lower balances held with the Central Bank and foreign correspondent banks. The investment portfolio grew 8.4%, primarily driven by higher exposure to sovereign securities in Colombia and abroad. The gross loan portfolio increased by 3.9%, explained by: i) strong performance of the commercial portfolio, mainly in Colombia in the corporate, construction and institutional sectors; and ii) positive dynamics in the mortgage portfolio, particularly in the leasing and residential loans sectors. Loan provisions decreased 5.8% due to a lower need for provisions, reflecting the improved performance of the consumer portfolioʼs credit quality and the charge-offs carried out during the year, which have declined significantly compared to previous years (-36.7% Y/Y and -44.4% in the accumulated figure versus the same period of 2024) Lastly, other assets declined 9.4%, mainly as a result of a lower balance of current tax receivables. 4.2.2. Gross Loans Consolidated (COP Billion) Colombia (COP Billion) Central America (USD Million) % Chg. % Chg. % Chg. Gross Loans 2Q24 1Q25 2Q25 Q/Q Y/Y 2Q25 Q/Q Y/Y 2Q25 Q/Q Y/Y Commercial 65,035 68,053 69,055 1.5 6.2 52,925 3.1 8.8 3,963 -0.6 0.2 Consumer 35,193 33,529 33,253 -0.8 -5.5 23,172 -0.2 -8.8 2,477 0.8 5.0 Mortgage 39,400 42,005 42,780 1.8 8.6 35,468 2.2 8.2 1,797 3.4 12.8 Total 139,628 143,586 145,088 1.0 3.9 111,565 2.1 4.4 8,237 0.7 4.2 Q/Q Performance: Gross loans totaled COP 145.1 trillion, increasing 1.0% during the quarter. Excluding the effect of the Colombian peso appreciation (+2.9%), gross loans grew 2.1%. The commercial portfolio rose 1.5%, mainly driven by Colombia, with higher disbursements to sectors such as construction, industry, energy, and hydrocarbons, among others. The consumer loan portfolio decreased 0.8%, representing a slower deceleration of the portfolio, as a result of a gradual increase in disbursement levels in Colombia. The mortgage portfolio grew 1.8%, supported by increased activity in the leasing and non-subsidized housing (non-VIS) segments, as well as adequate disbursement levels. In international subsidiaries, gross loans reached USD 8.2 billion, increasing 0.7% during the quarter. This growth was mainly driven by a 3.4% expansion in the mortgage portfolio across all countries in the region, especially in 12
Page 13
SECOND QUARTER 2025 RESULTS / 2Q25 Costa Rica and El Salvador. Additionally, the consumer portfolio grew 0.8%, supported by improved disbursement dynamics in Costa Rica and Panama. Y/Y Performance: Gross loans increased 3.9% year-over-year. Excluding the effect of the Colombian peso appreciation during the period (+1.9%), the portfolio grew 4.5%. The commercial portfolio expanded 6.2%, driven by higher activity in sectors such as construction, energy, and services in Colombia, as well as by lower interest rates that encouraged corporate borrowing. The consumer loan portfolio contracted 5.5% year-over-year, reflecting lower loan origination in prior years, in line with the Bankʼs more selective strategy toward higher-risk profiles. However, a gradual recovery in disbursement dynamics is evident, suggesting a possible reversal of this trend in the coming quarters. The mortgage loan portfolio grew 8.6%, mainly supported by the performance of the low-income housing segment (VIS) in Colombia, along with sustained growth in the leasing and non-VIS segments in recent quarters. In Central America, disbursement activity remained positive across all countries in the region, particularly in Costa Rica and El Salvador. Gross loans denominated in USD in international subsidiaries rose 4.2% year-over-year. Growth was led by the mortgage portfolio, which increased by USD 203.9 million (+12.8%), followed by the consumer portfolio, up USD 117.8 million (+5.0%), and the commercial portfolio, which increased by USD 7.5 million (+0.2%). Costa Rica, Panama, and El Salvador were the top contributors to annual loan growth in the region. 4.2.3. Asset Quality Consolidated Colombia International PDL 2Q24 1Q25 2Q25 2Q24 1Q25 2Q25 2Q24 1Q25 2Q25 Commercial 4.04% 4.14% 4.28% 5.04% 5.03% 5.19% 1.05% 1.43% 1.30% Consumer 5.37% 3.92% 3.96% 6.33% 4.35% 4.05% 2.85% 2.95% 3.74% Mortgage 5.06% 5.25% 5.15% 5.55% 5.84% 5.67% 2.58% 2.48% 2.61% Total (90)¹ 4.66% 4.42% 4.46% 5.51% 5.14% 5.11% 1.90% 2.11% 2.32% Mortgage (120) 4.24% 4.52% 4.27% 4.63% 5.01% 4.70% 2.30% 2.18% 2.20% Total (120)² 4.43% 4.20% 4.20% 5.22% 4.88% 4.80% 1.84% 2.05% 2.23% Total > 90: (Mortgage > 90 days + Commercial > 90 days + Consumer > 90 days) / Gross Loans Total > 120: (Mortgage > 120 days + Commercial > 90 days + Consumer > 90 days) / Gross Loans Portfolio Stage 1 Stage 2 Stage 3 Total (COP Billion) Commercial 87.56% 5.90% 6.54% 69,055 Consumer 90.16% 5.84% 4.00% 33,253 Mortgage 91.51% 5.17% 3.32% 42,780 Total 89.32% 5.67% 5.01% 145,088 Write-offs Quarterly Figures % Chg. (COP billion) 2Q24 1Q25 2Q25 Q/Q Y/Y Total write-offs 1,760 1,043 1,114 6.7 -36.7 13
Page 14
SECOND QUARTER 2025 RESULTS / 2Q25 Q/Q Performance: The past-due loan ratio over 90 days ratio for the consolidated portfolio closed at 4.46%, increasing 4 bps during the quarter, mainly due to higher delinquency levels in Central America. The past-due loan ratio over 90 days for the commercial portfolio rose 14 bps in the quarter, mainly explained by the deterioration of certain specific clients in Colombia in sectors such as services, residential construction, and agribusiness, where origination policies have been adjusted to contain further impacts. The past-due loan ratio over 90 days for the consumer portfolio increased 4 bps compared to the previous quarter, as a result of changes in charge-off policies in Costa Rica, as well as some impacts in El Salvador and Honduras. This effect was partially offset by improved consumer portfolio quality in Colombia, where new disbursements maintained a sound risk profile and charge-offs were executed during the quarter. The mortgage portfolio past-due loan ratio over 90 days decreased 10 bps from the end of the previous quarter, while the >120 days PDL ratio decreased 25 bps. This performance reflects better quality in new vintages and disbursements across all segments, as well as certain charge-offs carried out during the quarter. Charge-offs in 1Q25 totaled COP 1.11 trillion, an increase of 6.7% versus the previous quarter, concentrated mainly in the consumer portfolio in Colombia. Y/Y Performance: The consolidated past-due loan ratio over 90 days decreased 20 bps over the year, mainly explained by an improved risk profile in the consumer portfolio. This result reflects comprehensive management in origination, collections, and credit risk control, supported by a lower interest rate environment and charge-offs executed during the year. Accumulated charge-offs as of 2Q25 decreased 44.4% compared to those recorded in the same period of the previous year, mainly due to the improvement observed in the consumer portfolioʼs risk profile. 4.2.4. Coverage Coverage 2Q24 1Q25 2Q25 Commercial 105.8% 103.6% 103.2% Consumer 137.1% 143.2% 144.2% Mortgage 28.8% 31.4% 29.4% Total 91.3% 86.7% 86.4% Coverage + Collaterals 2Q24 1Q25 2Q25 Commercial 145.1% 144.9% 145.3% Consumer 143.8% 150.5% 151.7% Mortgage 125.6% 128.8% 126.8% Coverage + Collaterals 138.8% 140.5% 140.3% Q/Q Performance: The coverage ratio closed 2Q25 at 86.4%, decreasing 27 bps from 1Q25. This variation was driven by: i) lower coverage in the mortgage portfolio due to charge-offs during the quarter; ii) deterioration in the commercial portfolio, partially offset by higher provision expenses aimed at maintaining stable coverage levels, however, the 14 Write-offs Accumulated Figures % Chg. (COP billion) 2Q24 2Q25 Y/Y Total write-offs 3,880 2,157 -44.4
Page 15
SECOND QUARTER 2025 RESULTS / 2Q25 impact was limited by the charge-offs recorded during the quarter, resulting in a slight decline in the consolidated ratio; and iii) a slight increase in consumer coverage, reflecting an improved risk profile despite the contraction in the portfolio. The coverage ratio including collateral provides a more accurate view of credit risk exposure by incorporating guarantees backing the obligations. This ratio stood at 140.3% at the end of 2Q25, remaining stable compared to the previous quarter. Y/Y Performance: The traditional coverage ratio decreased 491 bps year-over-year, mainly due to higher past-due loan formation in the commercial and mortgage portfolios, as well as charge-offs executed during the year. The coverage ratio including collaterals increased 150 bps year-over-year, mainly driven by improved risk levels in the consumer portfolio and higher collateral levels for past-due commercial loans. 4.2.5. Funding Sources Consolidated (COP Billion) Colombia (COP Billion) Central America (USD Million) % Chg. % Chg. % Chg . Funding Sources 2Q24 1Q25 2Q25 Q/Q Y/Y 2Q25 Q/Q Y/Y 2Q25 Q/Q Y/Y Demand deposits 61,809 66,286 64,631 -2.5 4.6 47,864 -1.9 5.9 4,120 -1.2 2.9 Term deposits 66,441 72,420 73,983 2.2 11.4 56,276 3.4 12.5 4,351 1.3 10.0 Bonds 12,333 10,639 10,181 -4.3 -17.4 7,342 -3.5 -17.0 698 -3.5 -17.0 Credits 14,509 15,345 14,399 -6.2 -0.8 10,156 -8.7 -3.7 1,043 3.5 9.2 Total 155,092 164,690 163,194 -0.9 5.2 121,637 -0.2 6.1 10,211 0.1 4.7 Q/Q Performance: Funding sources totaled COP 163.2 trillion, decreasing 0.9% from the previous quarter, mainly due to lower balances of demand deposits, bonds, and credits with entities, partially offset by an increase in term deposits. Excluding the Colombian peso appreciation effect (+2.9%) during the quarter, funding sources increased 0.3%. Demand deposits reached COP 64.6 trillion, decreasing 2.5% in the quarter, mainly due to a seasonal effect of balance drawdowns, as well as a reduction in institutional deposits, partially offset by significant growth in deposits from individuals and the public sector. Term deposits increased 2.2%, mainly driven by stable interest rates, which continue to generate demand for this type of instrument. Bonds closed the second quarter at COP 10.2 trillion, decreasing 4.3% versus 1Q25, mainly in Colombia due to local bond maturities, partially offset by the issuance of a biodiversity bond for COP 210.5 billion. Credits with entities reached COP 14.4 trillion, decreasing 6.2% in the quarter, mainly due to debt repayments and maturities. The gross loan portfolio-to-funding sources ratio stood at 88.9%, increasing 172 bps from the previous quarter, due to the decrease in funding sources compared to the growth of the gross loan portfolio. 15
Page 16
SECOND QUARTER 2025 RESULTS / 2Q25 Y/Y Performance: Funding sources increased by 5.2% year-over-year, mainly driven by the growth in term deposits, followed by an increase in demand deposits. Excluding the 1.9% appreciation of the Colombian peso over the same period, funding sources grew 4.9%. Growth in traditional funding was primarily explained by an 11.4% increase in term deposits. This result reflects a slower-than-expected decline in interest rates throughout the year, which maintained investor appetite for these instruments. Meanwhile, demand deposits increased by 4.6%, mainly in Colombia, supported by higher balances from institutional clients, individuals, and the public sector. Outstanding bonds declined 17.4% compared to the second quarter of 2024, mainly in Colombia, due to the maturity of principal and interest from local ordinary bonds. Borrowings from financial institutions decreased by 0.8% year-over-year, primarily due to the repayment of foreign currency loans. The gross loan-to-funding ratio stood at 88.9%, decreasing 112 basis points compared to the second quarter of 2024 (90.0%). 4.2.6. Equity and Regulatory Capital Total Regulatory Capital and Risk Weighted Assets % Chg. (COP Billion) 2Q24 1Q25 2Q25 Q/Q Y/Y Equity 15,476 16,154 16,412 1.6% 6.0% Common Equity Tier I Capital (CET1) 13,460 14,322 14,535 1.5% 8.0% Additional Tier I Capital (AT1) 2,085 2,144 2,048 -4.5% -1.8% Tier II Capital 3,589 3,558 3,311 -6.9% -7.7% Total Regulatory Capital 19,119 20,024 19,894 -0.7% 4.1% Credit RWAs 111,255 110,897 112,271 1.2% 0.9% Market Value at Risk * 100/9 3,180 3,979 3,261 -18.1% 2.5% Operational Value at Risk *100/9 18,532 13,287 12,178 -8.3% -34.3% Risk Weighted Assets 132,967 128,164 127,710 -0.4% -4.0% CET1 Ratio 10.12% 11.18% 11.38% 21 bps 126 bps Tier I Ratio 11.69% 12.85% 12.98% 14 bps 129 bps Total Capital Adequacy Ratio 14.38% 15.62% 15.58% -5 bps 120 bps Leverage Ratio 7.82% 8.14% 8.22% 8 bps 40 bps Q/Q Performance: Consolidated book equity totaled COP 16.4 trillion as of June 2025, increasing 1.59% compared to the previous quarter, mainly driven by higher net profit during the period. The Common Equity Tier 1 (CET1) ratio stood at 11.38%, increasing 21 basis points during the quarter. This result was primarily due to the quarterly net profit and a reduction in risk-weighted assets (RWAs), particularly in market risk, due to a lower exposure to debt securities, and operational risk, driven by lower Internal Loss Index (IPI). Additional Tier 1 Capital decreased by 4.5% during the quarter, mainly due to the appreciation of the Colombian peso against the U.S. dollar. 16
Page 17
SECOND QUARTER 2025 RESULTS / 2Q25 Tier 2 Capital decreased by 6.9% during the quarter, primarily explained by a lower weighting of subordinated bonds and the exchange rate effect from the appreciation of the Colombian peso. As a result, the Total Capital Adequacy Ratio stood at 15.58% as of June 2025. Meanwhile, the leverage ratio stood at 8.22%, increasing 8 basis points from the previous quarter. In regards to the density of Risk-Weighted Assets (RWAs), it stood at 67.4%, decreasing by 12 basis points compared to 1Q25 (67.5%). Y/Y Performance: Consolidated accounting equity increased by 6.0% compared to the same period of the previous year, as a result of improved profits during the year. The Common Equity Tier I (CET1) ratio increased by 126 basis points year-over-year, driven by net earnings in the second half of 2024 and the first half of 2025, as well as a reduction in risk-weighted assets (RWA), particularly in operational risk, following the implementation of Daviviendaʼs internal operational risk model. The Total Capital Adequacy Ratio rose by 120 basis points compared to 2Q24, mainly explained by the aforementioned factors. The leverage ratio increased by 40 basis points compared to 2Q24, reflecting higher equity generation relative to the growth of accounting assets. Lastly, the Risk-Weighted Asset Density decreased by 516 basis points year-over-year, standing at 67.4%, down from 72.5% in 2Q24, mainly due to lower relative exposure to operational and market risk. 17
Page 18
SECOND QUARTER 2025 RESULTS / 2Q25 4.3. Income Statement Income Statement Quarterly Figures % Chg. Accumulated Figures % Chg. (COP billion) 2Q24 1Q25 2Q25 Q/Q Y/Y 2Q24 2Q25 Y/Y Interest Income 5,077 4,888 4,882 -0.1 -3.8 10,354 9,770 -5.6 Loan Income 4,528 4,344 4,303 -0.9 -5.0 9,228 8,647 -6.3 AA Commercial 1,986 1,873 1,849 -1.3 -6.9 4,007 3,721 -7.1 AA Consumer 1,516 1,376 1,360 -1.2 -10.3 3,137 2,736 -12.8 AA Mortgage 1,026 1,095 1,095 0.0 6.7 2,084 2,190 5.1 Investment Income 424 441 490 11.1 15.5 853 931 9.2 Other Income 125 103 89 -13.6 -28.9 273 192 -29.8 Financial Expenses 2,906 2,618 2,563 -2.1 -11.8 5,943 5,181 -12.8 AA Demand Deposits 558 411 398 -3.2 -28.7 1,156 809 -30.0 AA Term Deposits 1,652 1,627 1,641 0.9 -0.6 3,312 3,268 -1.3 AA Credits 311 261 251 -4.0 -19.4 655 512 -21.8 AA Bonds 273 219 211 -3.7 -22.9 579 429 -25.9 AA Other Expenses 111 99 63 -36.8 -43.7 242 162 -32.9 Gross Financial Margin 2,171 2,270 2,319 2.2 6.8 4,410 4,589 4.0 Net Provision Expenses 1,488 864 982 13.6 -34.0 3,240 1,846 -43.0 Net Interest Margin 683 1,406 1,337 -4.9 95.7 1,171 2,743 134.3 Exchange and Derivatives 145 67 100 49.4 -31.2 103 167 62.1 Non Financial Income 563 620 597 -3.7 6.2 1,216 1,218 0.1 AA Fee Income 499 522 534 2.4 7.1 965 1,056 9.4 AA Other Net Income and Expenses 64 99 63 -36.1 -1.0 251 162 -35.5 Operating Expenses 1,546 1,612 1,594 -1.1 3.1 3,016 3,206 6.3 AA Personnel Expenses 653 671 662 -1.3 1.4 1,257 1,333 6.1 AA Operation Expenses 574 621 610 -1.9 6.2 1,119 1,231 10.1 AA Other Expenses 319 320 322 0.9 1.2 641 642 0.2 Result Before Taxes -155 481 440 -8.6 N.A. -527 921 N.A. Income Tax -81 191 6 -96.8 N.A. -165 197 N.A. Net Result -74 291 434 49.2 N.A. -362 724 N.A. 4.3.1. Net Profit Quarterly figures Q/Q Performance: Net profit for 2Q25 totaled COP 433.7 billion, increasing 49.2% compared to the previous quarter. This performance was driven by higher investment portfolio income, lower financial expenses, improved foreign exchange and derivatives results, and lower operating expenses. As a result, the annualized return on average equity (ROAE) for the quarter stood at 10.65%, up 346 basis points versus 1Q25. Net profit in Colombia reached COP 354.5 billion, in line with the consolidated result, growing 64.4% quarter-over-quarter. The operation in Central America totaled approximately USD 17.8 million, remaining relatively stable compared to the previous quarter. 18
Page 19
SECOND QUARTER 2025 RESULTS / 2Q25 Y/Y Performance: Consolidated net profit increased by COP 507.7 billion year-over-year, mainly driven by lower financial expenses, a reduction in provision expenses, and higher non-financial income. In Colombia, net profit increased by COP 572.9 billion, explained by lower financial expenses, and reduced provision expenses, in line with the consolidated performance. In the international subsidiaries, net profit in USD decreased by USD 19.0 million compared to the same quarter of the previous year. This variation was mainly explained by a base effect in foreign exchange and derivatives results, as 2Q24 recorded a positive performance driven by a significant depreciation of the Costa Rican colón during the period. This was further impacted by higher financial expenses and an increase in provision and operating expenses. The annualized Return on Average Equity (ROAE) increased by 12,58 percentage points compared to 2Q24. Accumulated figures Y/Y Performance: Consolidated net profit reached COP 724.3 billion as of June 2025, an increase of COP 1.1 trillion compared to the figure accumulated as of June 2024. This performance was mainly explained by lower financial expenses, a significant reduction in provision expenses, and a stronger result from the foreign exchange and derivatives strategy. As a result, the 12-month Return on Average Equity (ROAE) stood at 6.23%, increasing by 12,75 percentage points year-over-year. In Colombia, net profit totaled COP 570.1 billion, increasing 205.3% versus June 2024, in line with the consolidated performance. For the international subsidiaries, year-to-date, net profit closed at USD 35.7 million, a decrease of 22.1%. This is explained by higher financial expenses, associated with an increase in policy rate levels and a larger volume of term deposits, as well as higher provision expenses reflecting the needs of some portfolio segments and the bank's commitment to maintaining adequate coverage levels. 4.3.2. Gross Financial Margin Gross Financial Margin Quarterly Figures % Chg. Accumulated Figures % Chg. (COP billion) 2Q24 1Q25 2Q25 Q/Q Y/Y 2Q24 2Q25 Y/Y Loan Income 4,528 4,344 4,303 -0.9 -5.0 9,228 8,647 -6.3 Investments and Interbank Income 549 544 579 6.4 5.4 1,126 1,123 -0.3 Financial Income 5,077 4,888 4,882 -0.1 -3.8 10,354 9,770 -5.6 Financial Expenses 2,906 2,618 2,563 -2.1 -11.8 5,943 5,181 -12.8 Gross Financial Margin 2,171 2,270 2,319 2.2 6.8 4,410 4,589 4.0 FX Changes, Derivatives 145 67 100 49.4 -31.2 103 167 62.1 GFM + FX&D 2,316 2,337 2,419 3.5 4.4 4,513 4,755 5.4 NIM Bps. Chg Annualized Quarter 2Q24 1Q25 2Q25 Q/Q Y/Y NIM 5.54% 5.52% 5.59% 7 5 NIM FX+D 5.91% 5.68% 5.83% 15 -8 19
Page 20
SECOND QUARTER 2025 RESULTS / 2Q25 NIM Bps. Chg 12 Months 2Q24 1Q25 2Q25 Q/Q Y/Y NIM 5.55% 5.43% 5.44% 1 -11 NIM FX+D 5.55% 5.65% 5.63% -2 8 Quarterly figures Q/Q Performance: The consolidated gross financial margin for the quarter totaled COP 2.3 trillion, increasing by 2.2%, driven by higher investment income and lower financial expenses. Loan portfolio income decreased by 0.9%, mainly due to: i) the seasonal effect of the UVR, which records the highest variations during the first quarter of the year; and ii) lower income from variable-rate indexed portfolios as a result of the decline in market interest rates. The increase in investment income during the quarter was mainly attributable to the appreciation of fixed-income instruments, driven by gains in the Colombian government securities curve in April and May, and to a lesser extent in June. During the quarter, financial expenses decreased by 2.1%, mainly due to the repricing of liabilities in line with lower rates, as well as the active management of funding sources, which has resulted in growth in low-cost segments. This was also supported by the reduction in interest expenses associated with bonds and credits with entities due to maturities during the quarter. Foreign exchange and derivatives posted a quarterly increase of 49.4%, reflecting the positive performance in Colombiaʼs strategy given the USD position, and income in Central America given the Costa Rican colón depreciation against the USD during the quarter. The quarterly annualized NIM stood at 5.59%, up 7 bps from the previous quarter, mainly due to the increase in the gross financial margin. The quarterly annualized NIM including foreign exchange and derivatives stood at 5.83%, increasing by 15 bps compared to the previous quarter, reflecting the positive results from the investment portfolio and from the foreign exchange and derivatives strategy. Y/Y Performance: The gross financial margin for the second quarter increased 6.8% compared to the second quarter of 2024, mainly due to lower financial expenses. This reduction resulted from liability repricing and the active management of funding costs. Regarding the foreign exchange and derivatives strategy, results decreased 31.2% compared to the same period of the previous year, explained by a base effect from 2Q24, when a positive result was recorded due to a higher depreciation of the colon. In Colombia, the gross financial margin rose by 7.6%, in line with the consolidated performance, mainly due to lower financial expenses, particularly from demand deposits. In the international operation, the gross financial margin in USD decreased by 2.7% year-over-year, mainly as a result of higher financial expenses, primarily associated with term deposits. The quarterly annualized NIM increased by 5 bps compared to the same period of the previous year, driven by the growth in the margin. 20
Page 21
SECOND QUARTER 2025 RESULTS / 2Q25 The quarterly annualized NIM including foreign exchange and derivatives decreased by 8 bps year-over-year, due to the interest-earning assets growing at a faster pace than the total margin including FX and derivatives. Accumulated figures Y/Y Performance: The accumulated gross financial margin as of June 2025 reached approximately COP 4.6 trillion, rising 4.0% compared to the same period in 2024, driven by a greater reduction in financial expenses relative to the decrease in financial income. Foreign exchange and derivatives totaled COP 167 billion, increasing 62.1% versus the accumulated result of the previous semester, mainly reflecting improved performance given the peso appreciation. In Colombia, the accumulated gross financial margin closed at COP 3.6 trillion, up 3.4% in line with consolidated results, mainly due to a greater decline in financial expenses relative to financial income, supported by the gradual decrease in interest rates and a funding strategy focused on prioritizing low-cost sources. In Central America, the accumulated gross financial margin reached USD 235.8 million, decreasing 0.4%, primarily as a result of higher financial expenses. The 12-month NIM was 5.44%, decreasing by 11 bps compared to the same period of the previous year, due to the growth pace of interest-earning assets relative to the margin. The 12-month NIM including foreign exchange and derivatives stood at 5.63%, up 8 bps year-over-year, mainly reflecting margin growth and improved results from the accumulated foreign exchange and derivatives strategy. 4.3.3. Provision Expenses Provision Expenses Quarterly Figures % Chg. Accumulated Figures % Chg. (COP billion) 2Q24 1Q25 2Q25 Q/Q Y/Y 2Q24 2Q25 Y/Y Provision for credit losses 1,703 1,159 1,298 11.9 -23.8 3,676 2,457 -33.2 Loan recoveries* 215 295 316 6.9 46.8 436 611 40.2 Net Provision Expenses 1,488 864 982 13.6 -34.0 3,240 1,846 -43.0 *Loan recoveries include Net loan sales Cost of Risk Bps. Chg Annualized Quarter 2Q24 1Q25 2Q25 Q/Q Y/Y CoR 4.26% 2.41% 2.71% 30 -156 Cost of Risk Bps. Chg 12 months 2Q24 1Q25 2Q25 Q/Q Y/Y CoR 4.72% 3.00% 2.62% -38 -210 Quarterly figures Q/Q Performance: Provision expenses, net of recoveries, totaled COP 982 billion, increasing 13.6% compared to the previous quarter. This increase was mainly explained by higher provisioning efforts aimed at maintaining coverage levels, particularly in the commercial and consumer portfolios. As a result, the annualized quarterly cost of risk stood at 2.71%, up 30 bps from the previous quarter. 21
Page 22
SECOND QUARTER 2025 RESULTS / 2Q25 Y/Y Performance: In the consolidated operation, provision expenses (net of recoveries) decreased 34.0% compared to June 2024, in line with the improvement in the consumer portfolio over the year, partially offset by the commercial portfolio due to additional provision recorded during the year for specific borrowers in the services, trade, and industrial sectors. The annualized quarterly cost of risk decreased 156 bps Y/Y. Accumulated figures Y/Y Performance: Provision expenses, net of recoveries, totaled COP 1.8 trillion as of June 2025, decreasing 43.0% compared to the same period of the previous year. This performance reflected lower provision expenses in the consumer portfolio and higher recoveries. The 12-month cost of risk stood at 2.62%, down 210 bps compared to the same period of the previous year. 4.3.4. Non-Financial Income Non Financial Income Quarterly Figures % Chg. Accumulated Figures % Chg. (Billion COP) 2Q24 1Q25 2Q25 Q/Q Y/Y 2Q24 2Q25 Y/Y Fee income 499 522 534 2.4 7.1 965 1,056 9.4 Other Net Income and Expenses 64 99 63 -36.1 -1.0 251 162 -35.5 Non-Financial Income 563 620 597 -3.7 6.2 1,216 1,218 0.1 Quarterly figures Q/Q Performance: Non-financial income totaled COP 597 billion in the second quarter of the year, decreasing 3.7% compared to the previous quarter. Fee income rose 2.4% during the quarter, mainly due to higher revenues from bancassurance, funds, and DaviPlata. On the other hand, other net income and expenses declined 36.1%, mainly due to a base effect compared to the previous quarter, driven by lower dividend income from non-controlled entities. Y/Y Performance: Non-financial income increased 6.2%, mainly in Colombia, driven by higher placement insurance products, as well as increased income from ATM transactions. Accumulated figures Y/Y Performance: Non-financial income accumulated as of June 2025 rose 0.1% year-over-year, mainly in Colombia due to higher revenues from life insurance and transactional activity. Other net income and expenses decreased 35.5% compared to June 2024, mainly due to a base effect from the lower impairment of foreclosed assets, following the appraisal updates carried out in the previous year. 22
Page 23
SECOND QUARTER 2025 RESULTS / 2Q25 4.3.5. Operating Expenses Operating Expenses Quarterly Figures % Chg. Accumulated Figures % Chg. (COP billion) 2Q24 1Q25 2Q25 Q/Q Y/Y 2Q24 2Q25 Y/Y Personnel Expenses 653 671 662 -1.3 1.4 1,257 1,333 6.1 Operating Expenses and Others 893 941 932 -1.0 4.4 1,760 1,873 6.5 Total Expenses 1,546 1,612 1,594 -1.1 3.1 3,016 3,206 6.3 Cost-to-Income Bps. Chg Annualized Quarter 2Q24 1Q25 2Q25 Q/Q Y/Y Cost-to-Income 53.7% 55.3% 52.9% -239 -84 Cost-to-Assets 3.44% 3.38% 3.36% -2 -8 Cost-to-Income Bps. Chg 12 months 2Q24 1Q25 2Q25 Q/Q Y/Y Cost-to-Income 55.2% 55.5% 55.3% -24 15 Cost-to-Assets 3.36% 3.42% 3.40% -2 4 Quarterly figures Q/Q Performance: During 2Q25, operating expenses decreased 1.1% compared to the previous quarter. Personnel expenses declined 1.3%, mainly due to a base effect from performance bonuses granted in the first quarter of the year. Operating and other expenses decreased by 1.0% compared to the previous period, mainly due to a base effect from the first quarter related to higher expenses from insurance renewals and service fees. The annualized quarterly efficiency ratio stood at 52.9%, improving 239 bps from the previous quarter, mainly reflecting growth in the financial margin and reductions in both personnel and operating expenses. Y/Y Performance: Operating expenses in 2Q25 increased 3.1% compared to the second quarter of the previous year, mainly driven by higher expenses in Colombia. This performance was primarily explained by a 4,4% increase in operating costs, resulting from higher advertising expenses and cloud subscription services, partially offset by lower service fees. Personnel expenses increased 1.4%, mainly due to the 2025 salary increase. Accumulated figures Y/Y Performance: Operating expenses accumulated as of June 2025 totaled $ 3.2 trillion, increasing 6.3% compared to the same period in 2024, reflecting controlled expense growth in real terms in line with the Bankʼs efficiency strategy. Excluding the exchange rate effect, expenses would have increased 4.6%. Personnel expenses rose mainly in Colombia, due to higher incentive payments linked to target achievement and the 2025 salary adjustment. 23
Page 24
SECOND QUARTER 2025 RESULTS / 2Q25 Operating and other expenses increased, driven by higher insurance renewal costs in the first quarter, as well as higher expenses related to cloud services for cybersecurity. 4.3.6. Taxes Quarterly figures Income Tax % Chg Quarter (COP billion) 2Q24 1Q25 2Q25 Q/Q Y/Y Tax -81 191 6 -96.8 N.A. Q/Q and Y/Y Performance: Income tax totaled COP 6 billion, decreasing from the previous quarter and increasing from the same period of the previous year. The quarterly decline was mainly due to tax exemptions on low-income housing, while the annual increase reflects the positive result for the year compared to the same period in the prior year. Accumulated figures Income Tax % Chg Accumulated(COP billion) 2Q24 2Q25 Y/Y Tax -165 197 N.A. Y/Y Performance: Accumulated tax as of June 2025 totaled COP 197 billion, increasing compared to the amount recorded in the same period of the previous year, mainly explained by the higher pre-tax income reported in 2025. 5. INDIVIDUAL FINANCIAL RESULTS The individual financial statements have been prepared in accordance with the law and regulations regarding accounting standards in force in Colombia, expressed in Colombian Pesos (COP), based on the International Financial Reporting Standards (IFRS) with adjustments established by the Financial Superintendence of Colombia. 5.1. Statement of Financial Position Statement of Financial Position (COP Billion) % Chg. Assets 2Q24 1Q25 2Q25 Q/Q Y/Y Cash and Interbank Funds 9,236 10,954 9,037 -17.5 -2.2 Net Investments 22,166 24,419 23,912 -2.1 7.9 Gross Loan Portfolio 103,288 106,091 108,357 2.1 4.9 AA Commercial 46,371 49,265 50,857 3.2 9.7 AA Consumer 24,868 22,851 22,784 -0.3 -8.4 AA Mortgage 32,049 33,976 34,716 2.2 8.3 Loan Loss Reserves -6,490 -6,474 -6,504 -0.4 -0.2 Other Assets 12,369 10,156 10,657 4.9 -13.8 Total Assets 140,569 145,145 145,460 0.2 3.5 24
Page 25
SECOND QUARTER 2025 RESULTS / 2Q25 Liabilities and Equity Repos and Interbank Liabilities 4,795 2,483 1,921 -22.6 -59.9 Demand Deposits 45,964 49,689 48,525 -2.3 5.6 AA Savings Accounts 37,870 40,950 39,724 -3.0 4.9 AA Checking Accounts 8,094 8,738 8,801 0.7 8.7 Term Deposits 50,265 54,852 56,548 3.1 12.5 Bonds 8,986 7,756 7,483 -3.5 -16.7 Credits 10,627 11,223 10,256 -8.6 -3.5 Other Liabilities 5,951 4,582 5,938 29.6 -0.2 Total Liabilities 126,588 130,584 130,671 0.1 3.2 Total Equity 13,981 14,561 14,789 1.6 5.8 Total Liabilities and Equity 140,569 145,145 145,460 0.2 3.5 5.1.1. Assets Total assets reached COP 145.5 trillion, increasing 0.2% quarter-on-quarter and 3.5% year-over-year. The quarterly variation was mainly driven by growth in gross loans, partially offset by decreases in cash and interbank funds and the investment portfolio. The annual growth was mainly explained by the performance of gross loans and the investment portfolio. Cash and interbank funds totaled COP 9.0 trillion, decreasing 17.5% compared to the previous quarter and 2.2% year-over-year. The quarterly decline was mainly due to lower balances in foreign currency correspondent accounts abroad, partially offset by higher activity in the money market. The annual decrease was mainly driven by lower balances at Banco de la República and foreign correspondents, largely offset by increased money market operations. The investment portfolio closed at COP 23.9 trillion, decreasing 2.1% during the quarter and increasing 7.9% year-over-year. The quarterly decrease was mainly due to the maturity of fixed-income instruments, while the annual growth was primarily driven by an increase in equity securities. Gross loans reached COP 108.4 trillion, increasing 2.1% compared to the previous quarter and 4.9% year-over-year. The performance by segment was as follows: Commercial portfolio closed at COP 50.9 trillion, rising 3.2% quarter-on-quarter and 9.7% year-over-year, mainly driven by disbursement activity in construction and civil works, energy and hydrocarbons, industrial, services, and other sectors. Consumer portfolio totaled COP 22.8 trillion, decreasing 0.3% compared to the previous quarter and 8.4% year-over-year. The portfolio showed an improved disbursement trend that slowed the pace of decline, resulting in stable balances during the quarter. Mortgage portfolio closed at COP 34.7 trillion, increasing 2.2% in the quarter and 8.3% year-over-year, mainly driven by the performance of leasing and non-VIS housing, and to a lesser extent, VIS housing. Other assets rose 4.9% in the quarter and declined 13.8% year-over-year. The quarterly increase was mainly due to higher market operations, while the annual decrease was explained by a lower balance of accounts receivable, as a result of lower current tax assets. 5.1.2. Liabilities and Equity Total liabilities reached COP 130.7 trillion, increasing 0.1% compared to the previous quarter, mainly due to higher term deposits and other liabilities, partially offset by decreases in demand deposits, bonds, and credits with entities. The 3.2% year-over-year growth was mainly explained by increases in term deposits and demand deposits. 25
Page 26
SECOND QUARTER 2025 RESULTS / 2Q25 Demand deposits closed at COP 48.5 trillion, decreasing 2.3% in the quarter and increasing 5.6% year-over-year. The quarterly decrease was mainly explained by seasonal effects. The annual growth was mainly driven by higher balances in the retail, government, and SME segments, in line with the bankʼs strategy to prioritize low-cost funding. Term deposits reached COP 56.5 trillion, rising 3.1% in the quarter and 12.5% year-over-year. This performance reflects stable interest rates, which continue to drive customer appetite for these instruments. However, consistent with the bankʼs strategy to increase low-cost funding, growth was concentrated in retail, corporate, and government segments. Bonds closed the quarter at COP 7.5 trillion, decreasing 3.5% in the quarter and 16.7% year-over-year, mainly due to bond maturities. Credits with entities closed at COP 10.3 trillion, decreasing 8.6% in the quarter and 3.5% year-over-year, mainly due to the repayment of foreign currency obligations. Shareholdersʼ equity stood at COP 14.8 trillion, increasing 1.6% in the quarter and 5.8% year-over-year, due to higher reported earnings. The CET1 ratio closed at 12.25%, increasing 15 bps in the quarter and 79 bps year-over-year. The total solvency ratio stood at 18.07% as of June 2025, decreasing 21 bps in the quarter and 43 bps year-over-year. 5.2. Income Statement Income Statement Quarterly Figures % Chg. Accumulated Figures % Chg. (COP Billion) 2Q24 1Q25 2Q25 Q/Q Y/Y 2Q24 2Q25 Y/Y Interest Income 3,945 3,683 3,734 1.4 -5.4 8,011 7,417 -7.4 Loans 3,643 3,360 3,340 -0.6 -8.3 7,386 6,700 -9.3 AA Comercial 1,487 1,427 1,413 -1.0 -5.0 2,988 2,841 -4.9 AA Consumer 1,160 993 982 -1.1 -15.3 2,411 1,975 -18.1 AA Mortgage 995 940 944 0.4 -5.2 1,987 1,884 -5.2 Investments 303 326 372 14.2 22.8 621 697 12.3 Other Income 0 -3 23 N.A. N.A. 4 20 389.2 Financial Expenses 2,408 2,051 2,028 -1.1 -15.8 4,904 4,078 -16.8 AA Demand Deposits 482 331 318 -3.8 -34.1 973 649 -33.3 AA Term Deposits 1,432 1,327 1,337 0.8 -6.6 2,888 2,664 -7.8 AA Credits with Entities 266 213 202 -5.1 -24.2 559 414 -25.9 AA Bonds 215 167 157 -5.6 -27.0 458 324 -29.3 AA Others 13 14 13 -5.2 7.0 26 28 6.0 Gross Financial Margin 1,537 1,632 1,707 4.6 11.0 3,107 3,339 7.5 Net Provision Expenses 1,115 606 680 12.2 -39.0 2,724 1,286 -52.8 Net Interest Margin 422 1,026 1,026 0.0 -143.2 383 2,052 435.8 Exchange and Derivatives 61 66 57 -13.3 -6.4 274 122 -55.4 Non Financial Income 576 479 448 -6.5 -22.3 1,390 927 -33.3 AA Fee Income 342 345 356 3.3 4.2 655 701 6.9 AA Other Net Income and Expenses 235 135 92 -31.7 -60.8 735 227 -69.2 Operating Expenses 1,159 1,178 1,132 -3.9 -2.3 2,252 2,309 2.5 AA Personnel Expenses 461 467 456 -2.4 -1.1 869 922 6.2 AA Operating Expenses 441 456 420 -7.9 -4.6 860 877 1.9 AA Others 258 254 256 0.7 -0.7 523 510 -2.4 Result Before Taxes -100 393 399 1.5 N.A. -205 793 N.A. 26
Page 27
SECOND QUARTER 2025 RESULTS / 2Q25 Income Tax -65 131 -38 -129.4 N.A. -426 92 N.A. Net Result -35 262 438 66.9 N.A. 221 700 216.2 Q/Q and Y/Y Performance: The gross financial margin reached COP 1.7 trillion, increasing 4.6% compared to the previous quarter and 11.0% year-over-year. Both the quarterly and annual variations were mainly driven by lower financial expenses, reflecting reduced costs associated with demand deposits, credits with entities, and bonds on both a quarterly and annual basis, and term deposits on an annual basis, in line with the Bankʼs strategy of prioritizing low-cost funding. Provisions expenses (net of recoveries) totaled approximately COP 0.7 trillion, increasing 12.2% quarter-on-quarter and declining 39.0% year-over-year. The quarterly increase reflects higher provisions related to additional coverage for certain commercial loan exposures, partially offset by lower provisioning needs in the consumer portfolio, driven by the improved performance and recoveries in this segment as well as its annual contraction which required lower provisioning both in the last year and in the quarter. Non-financial income totaled COP 448 billion, decreasing 6.5% compared to the previous quarter and 22.3% year-over-year. The quarterly variation was mainly explained by a base effect, given higher dividend income recorded in the first quarter of the year. On an annual basis, the variation was explained by a base effect from non-recurring income associated with the transaction between Banco Davivienda and Davivieda International Holding. Operating expenses totaled COP 1.1 trillion, down 3.9% quarter-over-quarter and 2.3% year-over-year. The quarterly decrease was mainly due to operating expenses associated with insurance renewals and service fees during the first quarter of 2025. The annual variation was explained by lower personnel and operating expenses, in line with the Bankʼs efficiency measures and process optimization initiatives. Income tax for 2Q25 totaled COP -38 billion, decreasing from the previous quarter due to tax exemptions related to low-income housing. As a result, net profit reached COP 438 billion, increasing 66.9% quarter-over-quarter and rising significantly compared to the same period of the previous year. Accumulated figures Y/Y Performance: Accumulated net profit closed at COP 700 billion, up 216.2% compared to the amount accumulated as of June 2024, mainly reflecting lower financial expenses, reduced provisions expense, and controlled expense growth. In the accumulated comparison, the gross financial margin reached COP 3.3 trillion, growing 7.5% year-over-year, in line with the quarterly and annual results. Provisions expense (net of recoveries) totaled COP 1.3 trillion, decreasing 52.8% compared to the same period of the previous year, as a result of improvements in the risk profile of the consumer portfolio. Non-financial income decreased 33.3%, mainly due to the recognition in 2024 of the gain from the sale of Grupo del Istmo to Davivienda International Holding and other non-recurring income recorded that year. Operating expenses closed at COP 2.3 trillion, increasing 2.5% compared to the accumulated amount as of June 2024, mainly explained by higher personnel expenses due to increased bonus payments for target achievement and salary adjustments. Accumulated income tax as of June 2025 totaled COP 92 billion, increasing compared to the same period of the previous year, mainly due to the higher accumulated result during the year. 27
Page 28
SECOND QUARTER 2025 RESULTS / 2Q25 6. RISK MANAGEMENT Banco Davivienda maintains a robust risk management framework that enables the timely identification, assessment, and response to the various threats that could affect its operations. This section provides further detail on the management of material risks, or those that showed a significant variation during the period. 6.1. Market Risk Market risk management begins with recognizing the primary mandate or business mission of the investments that form part of the Bankʼs balance sheet structure — that is, the business model. Broadly speaking, there are two main business models: structural management, and trading and distribution management. The first focuses on managing the Bankʼs balance sheet risks, generating returns through interest income, and establishing long-term investments aligned with business objectives. The second is aimed at generating profits from short- and medium-term price fluctuations, as well as distributing products to different types of clients. The segmentation of the investment portfolio between trading investments and structural investments is a key input for defining policies, alerts, and risk limits that reflect the Bankʼs appetite and tolerance for risk, its accounting classification, and the responsibilities of the management and decision-making areas. Banco Davivienda participates in the capital markets, money markets, and foreign exchange markets through its investment portfolio. The portfolios under management comprise a range of assets that diversify income sources and assumed risks, within a framework of limits and early-warning indicators designed to maintain the balance sheetʼs risk profile and its risk/return relationship. The following table presents the Bankʼs investment portfolio on an individual basis, broken down by business model and accounting classification: Individual: Business Model Q/Q Y/Y (Billion COP) 2Q24 1Q25 2Q25 $ % $ % Trading 3,219 4,107 3,976 -140 -3.4% 748 23.2% Structural 11,528 12,078 11,766 -312 -2.6% 238 2.1% AA Liquidity Reserve 8,450 8,342 8,120 -212 -2.5% -320 -3.8% AA Balance Sheet Management 3,078 3,736 3,636 -100 -2.7% 558 18.1% Total Portfolio 14,747 16,185 15,733 -452 -2.8% 986 6.7% Accounting Classification Q/Q Y/Y (Billion COP) 2Q24 1Q25 2Q25 $ % $ % Fair value through profit or loss 5,869 6,519 6,322 -197 -3.0% 453 7.7% Fair value through other comprehensive income 5,269 5,998 5,703 -295 -4.9% 434 8.2% Amortized Cost 3,609 3,668 3,708 40 1.1% 99 2.8% Total Portfolio 14,747 16,185 15,733 -452 -2.8% 986 6.7% The investment portfolio is primarily concentrated in structural positions (74.8%) aimed at generating sustainable returns over time, in line with the Bankʼs balance sheet risk management and business plan. As a result, the portfolio maintains a conservative risk profile with low risk appetite, recognizing that its main purpose is to manage the Bankʼs risks. Notwithstanding the above, the trading book has a less conservative profile; however, its market risk exposure is consistent with the size of the business and its expected return. 28
Page 29
SECOND QUARTER 2025 RESULTS / 2Q25 To determine the level of market risk exposure, the Bank considers the portfolioʼs risk/return ratio, the risk profile defined by the Board of Directors, the potential impact of a stress scenario (unexpected but plausible event) on its performance, and the implications for key indicators and the Bankʼs overall results. In line with the conservative profile of the investment portfolio and its structural management purpose, the Colombia portfolio maintained a duration below 2.5. This metric has shown no significant variation compared to both the same period in 2024 and the previous quarter. On a consolidated basis, the portfolio closed the quarter at COP 22.2 trillion. Similar to the Bankʼs portfolio in Colombia, 81.6% of the consolidated portfolio is concentrated in investments intended for balance sheet risk management, thereby preserving its conservative profile. The following table presents the portfolio breakdown by business model and accounting classification: Consolidated: Business Model Q/Q Y/Y (Billion COP) 2Q24 1Q25 2Q25 $ % $ % Trading 3,219 4,107 4,007 -100 -2.4% 788 24.5% Structural 17,252 18,658 18,220 -437 -2.3% 968 5.6% AA Liquidity Reserve 12,081 13,300 13,217 -82 -0.6% 1,136 9.4% Total Portfolio 20,472 22,765 22,288 -537 -2.4% 1,756 8.6% Accounting Classification Q/Q Y/Y (Billion COP) 2Q24 1Q25 2Q25 $ % $ % Fair value through profit or loss 6,192 6,814 6,918 104 1.5% 726 11.7% Fair value through other comprehensive income 9,326 11,158 10,617 -540 -4.8% 1,381 15.0% Amortized Cost 5,044 4,793 4,692 -101 -2.1% -352 -7.0% Total Portfolio 20,472 22,765 22,228 -537 -2.4% 1,756 8.6% In line with the same mandate and management philosophy, the consolidated portfolio maintained a duration of less than 2.0, broadly in line with the levels observed in March 2025 and June 2024. Davivienda applies the standard model for the measurement, monitoring, and management of market risk, as defined by the Colombian Financial Superintendence, focused on consumption and capital allocation. Complementing this, the Bank uses internal methodologies aligned with international best practices, such as the RiskMetrics methodology developed by JP Morgan, which incorporate various Value at Risk (VaR) measurements and backtesting procedures to assess their predictive capacity. Based on the standard model of the Colombian Financial Superintendence, the Value at Risk (VaR) for the individual and consolidated investment portfolios evolved as follows: Individual: VaR (% of the Portfolio) 2Q24 1Q25 2Q25 Q/Q Y/Y Interest Rate 1.28% 1.47% 1.17% -0.30% -0.12% Exchange Rate 0.05% 0.09% 0.05% -0.05% 0.00% Shares 0.04% 0.04% 0.05% 0.01% 0.00% Mutual Funds 0.07% 0.08% 0.09% 0.00% 0.01% VaR 1.45% 1.69% 1.35% -0.34% -0.10% 29
Page 30
SECOND QUARTER 2025 RESULTS / 2Q25 Consolidated: VaR (% of the Portfolio) 2Q24 1Q25 2Q25 Q/Q Y/Y Interest Rate 1,20% 1,37% 1,14% -0,23% -0,06% Exchange Rate 0,04% 0,06% 0,04% -0,02% 0,00% Shares 0,08% 0,06% 0,04% -0,02% -0,03% Mutual Funds 0,09% 0,09% 0,10% 0,01% 0,01% VaR 1,40% 1,57% 1,32% -0,25% -0,08% Overall, Value at Risk remained stable for both the individual and consolidated portfolios. The variations observed in this metric are mainly explained by an increase in structural investments within the balance sheet management model and by specific trading strategies, based on the money market desksʼ expectations regarding the behavior of key risk factors. 6.2. Credit Risk Consolidated At the end of the first half of 2025, the consumer loan portfolio posted a slower pace of contraction, reflecting a gradual and sustained recovery in disbursements levels. This improvement was supported by a reduction in charge-offs, directly resulting from enhancements to origination and approval policies, which have strengthened the overall quality of the portfolio. The performance of loan vintages and roll rates in the second quarter of 2025 maintained the favorable trend observed since 2024, with a positive effect on key asset quality indicators. These results are attributable to adjustments in the consumer portfolio, notably: - Optimization of origination parameters, prioritizing customers with stronger risk profiles. - Improvements in collection management focused on enhancing efficiency and effectiveness in portfolio recovery, supported by an optimized capacity analysis (better segmentation, deeper customer insight, and improved recovery performance in past-due loans). - Strengthening of early warning indicator monitoring , enabling timely evaluation of strategies and proactive decision-making. As a result, the consumer portfolio has a higher concentration in Stage 1 (89.9%) and a lower share in Stage 2 (6.0%). Stage 3 participation decreased slightly to around 4.1%, with coverage increasing to 85.5%. At the end of the first half, the commercial loan portfolio in Colombia increased 8.84% year-over-year, with growth strategically focused on corporate clients with optimal or good risk profiles, mainly in the services, energy and hydrocarbons, and residential construction sectors. While sectors such as retail and agriculture continue to face significant challenges due to weather conditions and commodity price volatility, targeted support strategies have been implemented for these clients, which have been key for portfolio indicators to show signs of stabilization, reflecting the effectiveness of the measures taken. In the mortgage portfolio, growth momentum has recovered, mainly driven by disbursements in non-subsidized mortgage segments and leasing. The improved performance of recent vintages and portfolio recovery has positively impacted early quality indicators. This improvement trend is expected to be reflected in delinquency and non-performing loan ratios over the medium term, contributing to better results for the Bank during the remainder of 2025. 30
Page 31
SECOND QUARTER 2025 RESULTS / 2Q25 International In Central America, total loans reached USD 8.237 billion in the second quarter of 2025, increasing 0.69% quarter-on-quarter and 4.16% year-on-year. Costa Rica posted the highest quarterly growth (2.23%), mainly in consumer (5.20%) and mortgage loans (3.02%), followed by El Salvador (1.82%), particularly in the commercial segment (2.51%). On an annual basis, Costa Rica and Panama recorded the strongest growth, mainly in the consumer and mortgage segments. In recent quarters, the consumer portfolio quality in Costa Rica, El Salvador, and Honduras has been affected. In Costa Rica, a charge-off parameter adjustment was implemented in March, considering recovery expectations, which led to an increase in the indicator and is expected to persist for several more months. In El Salvador and Honduras, certain customer profiles have shown increased risk, particularly in credit cards and personal loans. Corrective measures have been implemented, and indicators are expected to begin a gradual adjustment process. Individual Despite macroeconomic challenges, the Bankʼs total loan portfolio in Colombia grew 5.5% at the end of the second quarter of 2025 compared to the same period in 2024. The NPL ratio closed at 7.19%, down 27 basis points from the previous quarter. Total NPL coverage increased 8.16 percentage points year-over-year, reaching 83.52%. While the consumer portfolio continues to contract, it is showing signs of stabilization, with a smaller decline (-7.13%) compared to June 2024. This inflection reflects higher originations among better-profile customers, underscoring the effectiveness of corrective measures implemented. In the mortgage portfolio, the NPL ratio decreased 5 basis points compared to the first quarter of 2025. Portfolio quality remains affected by the deterioration of borrowers most exposed to the inflationary spike and higher lending rates of 2022 and 2023. However, the improved performance of recent vintages and adjustments in past-due loan recovery processes support projections for stabilization and gradual recovery during 2025. Quarterly Figures (%) Bps. Chg CDE Loans 2Q24 1Q25 2Q25 Q/Q Y/Y Total 8.34 7.46 7.19 -27 -115 AA Commercial 7.85 7.55 7.43 -12 -42 AA Consumer 13.86 10.24 9.37 -87 -449 AA Mortgage 4.76 5.45 5.40 -5 64 It is important to note that portfolio management follows the same approach for both the consolidated and individual balance sheets, ensuring that monitoring measures apply to both cases. 6.3. Interest Rate Risk in the Banking Book (IRRBB) Davivienda is exposed to Interest Rate Risk in the Banking Book (IRRBB) in the normal course of its operations. This risk arises from the possibility that changes in interest rates may affect the value of the Bankʼs assets and liabilities that are not held for trading purposes. IRRBB is monitored and managed through various metrics, including the sensitivity of the Economic Value of Equity (ΔEVE) and the sensitivity of the Net Interest Margin (ΔNIM), using both the standard methodologies established by the Colombian Financial Superintendence and internal models. The Bank operates within the risk appetite levels defined by the Board of Directors. In the period under review, the balance sheet showed a high level of repricing matching, resulting in a controlled exposure to interest rate shock scenarios. The EVE sensitivity, expressed as a proportion of total Tier 1 capital, remained within the established risk appetite range. Likewise, no material variations in the level of exposure were recorded during the quarter. 31
Page 32
SECOND QUARTER 2025 RESULTS / 2Q25 6.4. Other Risk Management Systems The Bankʼs comprehensive risk management model is based on guiding principles such as promoting a risk culture within the organization, defining cross-cutting guidelines and policies, applying the principle of segregation of duties through the three lines of defense model, and maintaining a solid governance framework. This enables the Bank to assess and monitor, with a forward-looking approach, any increase in risk exposure and the potential impacts that may affect profitability, liquidity, capital levels, and strategy. Under this risk management model, no material situations or events associated with other risks to which the Bank is 8 exposed were identified during the second quarter of 2025. Regarding liquidity risk, Banco Davivienda maintains a sufficient reserve of liquid assets, in line with its conservative risk profile, to withstand material liquidity stress events. In addition, the Bank has metrics and mechanisms in place to ensure an appropriate balance between its structural assets and stable funding. In the Central American subsidiaries, adequate liquidity levels have also been maintained in both the short and long term. 6.5. Credit Risk Ratings Daviviendaʼs long-term international issuer ratings reflected the effects of the recent adjustments to Colombiaʼs sovereign rating: - In June 2025, Moodyʼs downgraded Colombiaʼs sovereign rating from Baa2 to Baa3, maintaining investment grade and revising the outlook from negative to stable. Daviviendaʼs rating from Moodyʼs remained at Baa3 with a negative outlook, reaffirmed during the quarter. - Subsequently, S&P downgraded Daviviendaʼs rating from BB+ to BB with a negative outlook, as a direct consequence of the downgrade to Colombiaʼs foreign currency sovereign rating from BB+ to BB and its local currency rating from BBB- to BB+. - For Fitch Ratings, no changes were recorded during the second quarter of 2025. Daviviendaʼs rating remained at BB+with a negative outlook, following the adjustment made in March. At the local level, BRC Ratings reaffirmed the long-term issuer rating at AAA and the short-term rating at BRC 1+, while Fitch Ratings maintained its AAA (long-term) and F1+ (short-term) ratings. Additionally, the Tier II subordinated bond issued in July was rated BB- by Fitch Ratings and B1 by Moodyʼs, consistent with the instrumentʼs risk profile and subordination level 7. SUBSEQUENT EVENTS The following are the material changes that have occurred in the Bankʼs individual and consolidated financial statements between the reported quarter and the date of release and publication of the financial information: 7.1. Consolidated Financial Statements ▪ In July 2025, Banco Davivienda successfully completed the issuance and placement of subordinated debt instruments qualifying as Additional Tier 2 (AT2) capital under Basel III standards, for USD 500 million at a coupon rate of 8.125%. 8 Reference for the following risk management systems: Liquidity Risk, Strategic Risk, Country Risk, Operational Risk, Anti-Money Laundering and Counter-Terrorism Financing Risk, Fraud and Transactional Risk, Information Security and Cybersecurity Risk, Data Protection and Privacy Risk, Technology Risk, Third-Party and Partner Risk, Business Continuity, and Regulatory Compliance. 32
Page 33
SECOND QUARTER 2025 RESULTS / 2Q25 7.2. Individual Financial Statements ▪ In July 2025, Banco Davivienda successfully completed the issuance and placement of subordinated debt instruments qualifying as Additional Tier 2 capital under Basel III standards, for USD 500 million at a coupon rate of 8.125%. 8. CURRENT ISSUANCES 8.1. Shares Type of Security Authorized Capital (Shares) Shares Outstanding Total Shares Outstanding Stock Exchange Preferred Shares 500,000,000 116,601,012 487,670,413 BVC BCS Common Shares 371,069,401 Unlisted % Chg. Stock Information 2Q24 1Q25 2Q25 Q/Q Y/Y Total Shares 487,670,413 487,670,413 487,670,413 0,0 0,0 Total Common Shares 371,069,401 371,069,401 371,069,401 0,0 0,0 Total Preferred Shares 116,601,012 116,601,012 116,601,012 0,0 0,0 Preferred Share Closing Price COP 20,000 20,500 22,980 12.1 14.9 Preferred Share Closing Price USD 4.8 4.9 5.6 15.5 17.1 Market Capitalization (Bn COP) 9,753 9,997 11,207 12.1 14.9 Market Capitalization (Bn USD) 2.4 2.4 2.8 15,5 17,1 Earnings Per Share (EPS) COP -742 596 1,485 149.2 N.A. Earnings Per Share (EPS) USD -0.18 0.14 0.36 156.7 N.A. Price to Earnings Ratio (P/E) (x) -27.0 34.4 15.5 -55.0 N.A. Dividends Per Share COP 0 0 0 0,0 0,0 Book Value Per Share COP 31,353 32,710 33,252 1.7 6.1 Price to Book Value (P/BV) (x) 0.64 0.63 0.69 10.3 8.3 8.2. Bonds International Bonds (USD million) Currently, we have an international issuance of a perpetual AT1 instrument with a placed and outstanding amount of USD $500 million as of June 30, 2025. This instrument is traded on the Singapore Stock Exchange (SGX). Type Date of Issuance Maturity Date Currency Amount Placed Outstanding (Jun 25) Coupon Rate Risk Ratings Stock Exchange AT1 22/04/2021 Perpetual NC10 USD 500 500 6.65% Fitch: B Moodyʼs: B2 SGX Distributable Items As of June 2025, Banco Davivienda had distributable items in its Individual Financial Statements totaling COP $2.9 trillion. The distributable elements consist of: i) accumulated profits from previous fiscal years, and ii) occasional reserves established for distribution purposes. 33
Page 34
SECOND QUARTER 2025 RESULTS / 2Q25 Senior and Subordinated Bonds Program 2011 (COP Billion) The global amount of the Senior and Subordinated Bonds Program is up to COP $6 trillion out of which COP $200 billion were available as of June 30, 2025. The detail of each issuance batch of the program is provided in the table below. Senior and Subordinated Bonds Program 2011 Date Of Issuance Maturity Date Currency Amount Issued* Amount Placed** Outstanding Amount (Jun 25)*** First Issuance 10/03/2011 10/09/2013 COP 1,300 334 0 10/03/2011 10/03/2015 COP 176 0 10/03/2011 10/09/2018 COP 235 0 10/03/2011 10/09/2021 COP 354 0 Second Issuance 25/04/2012 25/04/2022 COP 400 181 0 25/04/2012 25/04/2027 COP 219 219 Third Issuance 15/08/2012 15/08/2015 COP 500 96 0 15/08/2012 15/08/2022 COP 174 0 15/08/2012 15/08/2027 COP 230 230 Fourth Issuance 13/02/2013 13/02/2016 COP 500 101 0 13/02/2013 13/02/2023 COP 215 0 13/02/2013 13/02/2028 COP 185 185 Fifth Issuance 10/12/2013 10/12/2015 COP 400 316 0 10/12/2013 10/12/2020 COP 84 0 Sixth Issuance 15/05/2014 15/05/2017 COP 600 256 0 15/05/2014 15/05/2019 COP 183 0 15/05/2014 15/05/2024 COP 161 0 Seventh Issuance 09/10/2014 09/10/2016 COP 600 273 0 09/10/2014 09/10/2017 COP 90 0 09/10/2014 09/10/2019 COP 109 0 09/10/2014 09/10/2024 COP 128 0 Eighth Issuance 12/02/2015 12/02/2018 COP 700 379 0 12/02/2015 12/02/2020 COP 187 0 12/02/2015 12/02/2025 COP 134 0 Ninth Issuance 13/05/2015 13/05/2025 COP 400 400 0 Tenth Issuance 10/11/2015 10/11/2017 COP 600 177 0 10/11/2015 10/11/2020 COP 149 0 10/11/2015 10/11/2025 COP 274 274 Total 6,000 5,800 907 34
Page 35
SECOND QUARTER 2025 RESULTS / 2Q25 * Corresponds to the total amount of each issuance as stated in the public offering memorandum. ** The UVR at the issuance date is used to restate UVR-linked bonds to COP. (UVR: Unidad de valor real, Colombiaʼs inflation-linked unit). ***The outstanding amount only includes principal. Global Amount Available at Jun 25 Program 2011 6,000 200 Senior and Subordinated Bonds Program 2015 (COP Billion) The global amount of the Senior and Subordinated Bonds Program is up to COP $14.51 trillion; COP $8.1 trillion were available as of June 30, 2025. The detail of each issuance batch of the program is provided in the table below. Senior and Subordinated Bonds Program 2015 Date Of Issuance Maturity Date Currency Amount Issued* Amount Placed** Outstanding Amount (Jun 25)** First Issuance 27/07/2016 27/07/2019 COP 600 222 0 27/07/2016 27/07/2023 COP 132 0 27/07/2016 27/07/2028 COP 246 246 Second Issuance 28/09/2016 28/09/2026 COP 400 359 359 Third Issuance 29/03/2017 29/03/2024 COP 400 199 0 29/03/2017 29/03/2025 COP 200 0 Fourth Issuance 07/06/2017 07/06/2020 COP 700 357 0 07/06/2017 07/06/2024 COP 174 0 07/06/2017 07/06/2027 COP 169 169 Fifth Issuance 15/11/2018 27/07/2023 COP 500 200 0 15/11/2018 15/11/2021 COP 87 0 15/11/2018 15/11/2026 COP 166 166 Sixth Issuance 19/02/2019 19/02/2022 COP 500 276 0 19/02/2019 19/02/2029 COP 224 224 Seventh Issuance 16/07/2019 16/07/2022 COP 600 169 0 16/07/2019 16/07/2024 COP 307 0 16/07/2019 16/07/2029 COP 124 124 Eighth Issuance 26/09/2019 26/09/2023 COP 700 291 0 26/09/2019 26/09/2026 COP 290 290 26/09/2019 26/09/2031 COP 119 119 Ninth Issuance 11/02/2020 11/02/2025 COP 700 244 0 11/02/2020 11/02/2027 COP 169 169 11/02/2020 11/02/2032 UVR 287 287 Tenth Issuance 18/02/2021 18/02/2026 COP 700 221 221 18/02/2021 18/02/2028 COP 276 276 18/02/2021 18/02/2031 UVR 203 202 Eleventh Issuance 07/09/2021 07/09/2031 COP 700 217 217 35
Page 36
SECOND QUARTER 2025 RESULTS / 2Q25 07/09/2021 07/09/2024 COP 277 0 07/09/2021 07/09/2026 COP 205 205 Total 6,500 6,410 3,274 * Corresponds to the total amount of each issuance as stated in the public offering memorandum. ** The UVR at the issuance date is used to restate UVR-linked bonds to COP. (UVR: Unidad de valor real, Colombiaʼs inflation-linked unit). ***The outstanding amount only includes principal. Global Amount Outstanding Amount Jun 25 Program 2015 14,510 8,101 Domestic issuances with a single international buyer (COP Billion) Senior Holder Date of Issuance Maturity Date Currency Amount Placed Outstanding Amount (Jun 25)* Senior IFC 25/04/2017 25/04/2027 COP 433 433 Senior BID 25/08/2020 25/08/2027 COP 363 363 Senior IFC 24/04/2025 24/04/2029 COP 211 211 *The outstanding amount only includes principal. 8.3. Term Deposits Term Deposits (CDs) issued by Banco Davivienda traded and listed on the Colombian Stock Exchange had a nominal value as of June 30, 2025 of COP 28.66 trillion. 9. GLOSSARY 1. Book Value per Share (BV) COP = (Consolidated Equity - Non-controlling Interest) / Total Shares. 2. CDE Loans: This refers to the rating assigned to clients under the methodology of the Superintendency of Finance (SFC), where the CDE portfolios represent clients with the highest level of impairment. 3. Cost of Risk (12 months) = Provision Expenses (12 Months) / Gross Loans. 4. Cost of Risk (Annualized Quarter) = Provision Expenses (Quarter) x 4 / Gross Loans. 5. Cost-to-income = Operating Expenses / (Gross Financial Margin + Non-Financial Income + FX&D). 6. Coverage: Loan Loss Provisions / Past due Loans over 90 days. 7. Coverage + Collaterals: Loan Loss Reserve + Collateral Value / Portfolio over 90 days. The value of the collaterals corresponds to the value of the collaterals covering each credit in the portfolio over 90 days, applying haircuts according to the type of collateral in each case. 8. Earnings per Share (EPS) COP = (Accumulated Net Profits (12 months)) / Total Shares. 9. Earnings per Share (EPS) USD = (Accumulated Net Profits (12 months) / Exchange Rate as of the close of the Current Reported Quarter) / Total Shares. 10. Gross Loans / Funding Sources = Gross Loan Portfolio / (Demand Deposits + Term Deposits + Credits with Entities + Bonds). 11. Investment NIM (12 months) = (Fixed Income Securities Income (Accum. 12 months) + Interbank Income (Accum. 12 months) - Financial Expenses due to Monetary Market Operations (Accum. 12 months)) / (Average Fixed Income Securities (5 Quarters) + Average Interbank Funds (5 Quarters)). 12. Investment NIM (FX&D) (12 months) = (Fixed Income Securities Income (Accum. 12 months) + Interbank Income (Accum. 12 months) - Financial Expenses due to Monetary Market Operations (Accum. 12 months) + 36
Page 37
SECOND QUARTER 2025 RESULTS / 2Q25 (Exchanges and Derivatives (Accum. 12 months)) / (Fixed Income Securities (5 Quarters) + Interbank Funds (5 Quarters)). 13. Loan NIM (12 months) = (Loan Income (12 months) - (Savings Accounts Expenses (12 months) + Checking Accounts Expenses (12 months) + Term Deposit Expenses (12 months) + Credits with Entities Expenses (12 months) + Bond Expenses (12 months)) / Average Interest Earning Loans (5 Quarters). 14. Market Capitalization (Bn COP) = Total Shares * Preferred Share Closing Price. 15. Market Capitalization (Bn USD) = (Total Shares * Preferred Share Closing Price) / Exchange Rate as of the close of the Current Reported Quarter. 16. Market Risk: Refers to the possibility of incurring losses associated with the decrease in the value of portfolios due to changes in the price of financial instruments in which positions are held on or off the balance sheet. It is also understood as uncertainty about the future value of an investment, and its management consists of identifying, measuring, monitoring, and controlling risks derived from fluctuations in various risk factors, including interest rates, exchange rates, prices, indexes, and other factors to which the entity's activity is exposed. 17. NIM (12 months) = Gross Financial Margin (12 months) / Average Interest Earning Assets (5 quarters). 18. NIM (FX&D) (12 months) = (Accumulated Gross Financial Margin (12 months) + Accumulated Exchanges and Derivatives (12 months)) / Average Interest Earning Assets (5 Quarters). 19. NIM (Annualized Quarter) = Gross Financial Margin (Quarter) x 4 / Average Interest Earning Assets (2 Quarters). 20. NIM (FX&D) (Annualized Quarter) = (Gross Financial Margin (Quarter) + Exchanges and Derivatives (Quarter ) x 4) / Interest Earning Assets (2 Quarters). 21. Non Financial Income Ratio = Total Non Financial Income / (Gross Financial Income + Non Financial Income + Exchange and Derivative Income). 22. PDL > 90 = Past due Loans over 90 days / Gross Loan Portfolio. 23. PDL > 120 = (Past due Mortgage Loans over 120 days + Commercial past due Loans over 90 days + Consumer past due Loans over 90 days) / Gross Loan Portfolio. 24. Preferred Share Closing Price USD = Preferred Share Closing Price COP / Exchange Rate as of the close of the Current Reported Quarter. 25. Price to Book Value (P/BV) (x) = Preferred Share Closing Price / Book Value per Share (BV) COP. 26. Price / Earnings per Share (P/E) = Preferred Share Closing Price / Earnings per Share (EPS) COP. 27. ROAA (Annualized Quarter) = (Net Profits (Quarter) x 4) / Average Assets (2 Quarters). 28. ROAA (12 months) = Net Profits (12 months) / Average Assets (5 Quarters). 29. ROAE (Annualized Quarter) = (Net Profits (Quarter) x 4) / Average Equity (2 Quarters). 30. ROAE (12 months) = Net Profits (12 months) / Average Equity (5 Quarters). 31. Total PDL > 120 = (Mortgage Loans over 120 days + Commercial Loans over 90 days + Consumer Loans over 90 days) / Gross Loan Portfolio. 32. VaR: Value at Risk (VaR) is a measure used to estimate the potential loss amount that a portfolio could experience due to price movements affecting its valuation over a specified time horizon, at a certain probability level. The VaR is calculated according to the methodology defined by the Financial Superintendence of Colombia, through Annex I of Chapter XXI of the Basic Accounting and Financial Circular. It corresponds to a parametric VaR model under stress conditions, aiming to allocate capital for market risk. 2Q25 EARNINGS CONFERENCE CALL Davivienda is pleased to invite you to the second quarter 2025 results teleconference, which will take place on August 15th at 8:00 am COT / 9:00 am EST. Please visit the following link to register. 37
Page 38
SECOND QUARTER 2025 RESULTS / 2Q25 The information hereby presented is exclusively for informative and illustrative purposes and it is not, nor does it pretend to be, a source for legal or financial assessment of any kind. Certain statements in this document are “forward-looking” statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements may relate to our financial condition, results of operations, plans, objectives, future performance, and business, including, but not limited to, statements with respect to the adequacy of the allowance for impairment, market risk and the impact of interest rate changes, capital adequacy and liquidity, and the effect of legal proceedings and new accounting standards on our financial condition and results of operations. All statements that are not clearly historical in nature are forward-looking. These forward-looking statements involve certain risks, uncertainties, estimates and assumptions by management. Various factors, some of which are beyond our control, could cause actual results to differ materially from those contemplated by such forward-looking statements. All forward-looking statements included in this document are based on information and calculations carried out internally by Davivienda as of the date of this conference and, therefore, Davivienda assumes no obligation to update or revise any of those forward-looking statements. These cautionary statements should be considered in connection with any written or oral forward-looking statements that we may issue in the future. If one or more of these risks or uncertainties should occur, or if underlying assumptions prove incorrect, our actual results may vary materially from those expected, estimated or projected. These financial statements have been prepared following International Financial Reporting Standards and are presented in nominal terms. The resulting statement for the closed quarter on June 30th, 2025 shall not be necessarily indicative of results expected for any other period. Davivienda expressly discloses that it does not accept any responsibility derived from i) actions or decisions taken or not taken based on the content of this information; ii) losses resulting from the execution of the proposals or recommendations presented in this document; or iii) any content sourced from third parties. Investor Relations (+57) 601 2203495 ir@davivienda.com - ir.davivienda.com www .davivienda.com Bogota - Colombia 38