Earnings Call: Q3 2026

Nov 13, 2026

Summary

Q3 net profit was COP 720 billion, with 2.0% ex-FX loan growth and adjusted core ROAE of 11.16%. Integration advanced, while FY ROAE guidance rose to 10.5%-11.5% and recurring savings are targeted to reach COP 900 billion-COP 1.2 trillion by 2028.

Welcome to Davivienda Group's third quarter of 2026 earnings conference call. Today's presentation is for investors and analysts only. Therefore, questions from the media will not be addressed. Today, Mr. Javier Suárez, Chief Executive Officer, and Mr. Pedro Bohórquez, VP of Strategic Risk and Financial Planning, will join us to discuss the quarterly results that have been released. If you have not yet received a copy of the earnings report and presentation, please visit Davivienda Group's investor kit at daviviendagroup.com. All participants are in a listen-only mode at this time. Please note that this conference is being recorded. Afterwards, management will be available for a question-and-answer session. Before proceeding, let me mention that any forward-looking statements are being made under the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Actual performance could differ materially from anticipated in any forward-looking statements due to macroeconomic conditions, market risks, and other factors beyond our control. I am pleased to turn the call over to Mr. Javier Suárez, Chief Executive Officer. Mr. Suárez, the floor is yours. Good morning, everyone, and thank you for joining us today for Davivienda Group's third quarter 2026 earnings conference call. During this time, we continue to make progress on our integration roadmap while remaining fully focused on executing our business strategy. Our performance reflects progress on both fronts. We delivered financial results in line with our expectations and reached an important milestone in our integration process. On November 1st, we successfully completed the partial transfer of DAVIbank Colombia's assets, liabilities, and contracts to Banco Davivienda, bringing both banking operations together under a single institution. This marks an important step in building a stronger and more efficient banking franchise while we continue to pursue growth opportunities across our markets. With that, let me walk you through the key developments of the quarter, beginning with the macroeconomic environment in Colombia on slide four. The Colombian economy continued to grow, although at a more moderate pace, expanding by an average of 0.5% year-over-year in July and August, with services continuing to support growth, while agriculture, mining, and industrial activities showed weaker momentum. On a more positive note, confidence improved during the quarter, supported by a more favorable perception of the country's fiscal outlook following recent government announcements. At the same time, inflation remained persistent, increasing from 6.14% in June to 6.30% in October. Price pressures continue to be driven by elevated service costs alongside higher food prices. Against this backdrop, remained restricted. The central bank maintained its policy rate at 12% throughout the quarter, with a subsequent 25 basis point. The Colombian peso continued to appreciate, although at a slower pace than in the previous quarter, strengthening by 3.7% foreign currency inflows, attractive interest rate differentials, and sustained remittance flows. While a stronger peso helps contain imported inflation, it also reduces the contribution of our international operations when their results are translated into Colombian pesos. In terms of our expectations, our forecast points to 2.2% GDP growth in 2026, with a year-end inflation of around 6.9% and the central bank's policy rate reaching 12.5%. Please turn to slide seven, where I will review the evolution of the Colombian financial system. During the third quarter, credit conditions evolved differently across lending segments, with interest rates playing an important role in these dynamics. In commercial and consumer lending, lower interest rates were accompanied by stronger loan growth and improving asset quality. Mortgage lending, however, followed a different trend. Higher financing rates coincided with a moderation in loan growth and a slight pickup in delinquency. Overall, the financial system continues to show positive lending dynamics, with annual loan growth of around 10% and the 90-day past due loan ratio remaining close to 2.8%. Moving on to slide six, economic activity across Central America remained positive, although growth and inflation dynamics continue to differ across countries. Starting with Costa Rica, GDP growth moderated to 3.5% year-over-year in the second quarter, while inflation remained low at 0.3% in September, and the central bank maintained its policy rate at 3%. On the currency front, the Costa Rican colon depreciated by 0.8% during the quarter, although it remained approximately 9% stronger than a year earlier. In El Salvador, economic activity maintained strong momentum, with GDP expanding 5.1% year-over-year in the second quarter, supported particularly by construction. Meanwhile, inflation reached 3.6% in September, mainly driven by higher transportation costs alongside rising food prices. Turning to Honduras, economic growth moderated to 2.7%, mainly reflecting weaker manufacturing activity. At the same time, inflation increased to 6.3% in September, prompting the central bank to raise its policy rate to 6%. Finally, Panama continued to stand out as the fastest-growing economy among our Central American markets, with GDP expanding 6.4% year-over-year, supported by Panama Canal performance, transportation, and commerce. Inflation remained relatively contained at 2.8%, providing a favorable backdrop for economic growth. We continue to see opportunities across our Central American markets, supported by strong economic activity in Panama and El Salvador, along with favorable inflation and monetary conditions in Costa Rica. Please turn to slide seven, where I would like to provide an update on our response to the earthquake that affected Colombia in August. Our priority was to ensure business continuity while supporting the recovery of affected families and businesses. We activated our protocols to maintain service availability, supported by the resilience of our digital platforms. At the same time, we implemented targeted measures to support families and businesses in the affected regions. This included preferential financing conditions for mortgage, home repairs, liquidity needs, and working capital, among other solutions. Turning to our exposure, approximately 10% of our consolidated loan book is located in the affected regions. Importantly, this geographic exposure should not be confused with the portfolio directly impacted by the earthquake. In fact, approximately 7% of this exposure has been classified as having a low or moderate level of impact, while our entire exposed mortgage portfolio is covered by insurance, providing an additional layer of protection. For affected customers, we have offered flexible payment solutions tailored to their circumstances and the extent of the impact, helping households and business manage their financial obligations while maintaining prudent credit risk management. As of September, around 3,000 customers had benefited from our relief programs, representing approximately COP 600 billion in loan balances, or 3.2% of the identified exposed portfolio. We continue to monitor these exposures closely, with our efforts focused on supporting customers through the recovery process while proactively managing potential credit impacts, which are not expecting to be material for 2026 and are already considered in our guidance. Please turn to slide eight. Our third quarter results reflected solid underlying business performance and disciplined execution, providing a stronger foundation for achieving our earnings potential. Starting with our loan portfolio, gross loans grew 2% during the quarter, excluding foreign exchange effects, supported by positive lending dynamics across all business segments. Turning to margins, our core banking activities and hedging strategy continue to support resilient financial performance. Although investment income normalized following the exceptionally strong valuation gains recorded in the second quarter, our balance sheet positioning and derivative strategy helped limit the impact, with NIM closing at 5.98%. At the same time, we continued strengthening our loan portfolio coverage, with cost of risk increasing slightly to 2.19%, reflecting our prudent approach to managing credit risk. These dynamics resulted in quarterly net profit of COP 720 billion, bringing accumulated earnings to COP 1.85 trillion for the first nine months of the year. On a core performance basis, return on average equity reached 11.16% for the quarter and 11.13% year-to-date. Our financial performance was also accompanied by a stronger capital position, with Banco Davivienda's CET1 ratio increasing to 12.19%, reinforcing our capacity to support future growth. Please turn to slide nine, where I would like to highlight the progress we are making with DaviPlata. As we advance DaviPlata's evolution into a neobank, our focus is moving beyond customer acquisition toward leveraging its transactional ecosystem to strengthen funding, build deeper financial relationships, expand credit opportunities, and generate sustainable revenues. We continue to see encouraging progress. Low-amount deposits grew 27% year-over-year, reinforcing the platform's contribution as a valuable source of low-cost funding for Banco Davivienda. Payment-related transaction volume across the DaviPlata ecosystem reached COP 7.1 trillion during the quarter, increasing 47% year-over-year, reflecting the platform's growing role in everyday payments and commerce. An increasingly relevant component of this activity is merchant payments through Bre-B, which allow customers from other financial institutions to pay directly into merchants' DaviPlata accounts. During the quarter, these transactions represented 25% of total billing volume, highlighting DaviPlata's expanding role in the broader payments ecosystem. An important part of the strategy is leveraging our knowledge of customers' transactional behavior to better understand their financial needs and offer more relevant credit solutions. Following the adjustments to our credit policies in the second quarter, disbursements recovered, while our loan portfolio more than doubled compared with a year ago. This allows us to progressively expand our lending business while maintaining a disciplined approach to risk. Importantly, these developments are translating into stronger monetization. Accumulated income increased by 57% annually, supported by our transactional, funding, and lending businesses. Quarterly revenues, meanwhile, reflected the normalization of the seasonal transactional income typically recorded in the second quarter. Looking ahead, our priority is to turn greater customer engagement and an expanding payments ecosystem into broader financial relationships, strengthening DaviPlata's contribution to the group's recurring earnings generation. Please move on to slide 10, where I would like to provide an update on the execution of our integration roadmap. As I mentioned earlier, following the regulatory approval on November 1, we successfully completed the partial transfer of DAVIbank Colombia's assets, liabilities, and contracts to Banco Davivienda, bringing both banking operations together under a single institution. In exchange, Banco Davivienda will transfer 23.4% of Holding Davivienda Internacional S.A. (HDI) share capital to DAVIbank, now Lambda Bank. This transfer is still pending and is expected to be completed in the next few months. With this milestone, our focus is now increasingly on the operational integration of both businesses, including the gradual migration of customers, technology, service channels, and processes. Throughout this transition, DAVIbank's service channels and customer support will remain operational, ensuring continuity of service. In parallel, we continue to advance the remaining corporate steps involving our brokerage and fiduciary businesses, each following its respective integration process and timeline. Turning to costs and synergies, I would like to emphasize an important distinction in how we measure the value being generated by this process. Integration costs and efficiency gains follow different timelines. While investments in technology and operational migration are incurred as we execute the integration, recurring savings begin to materialize as these initiatives become fully operational. This is why we're focusing on the annualized run rate of efficiencies achieved to better reflect the structural value being created. By the end of September, we had incurred approximately 12% of our total expected integration costs, which we forecast to be between COP 600 billion and COP 700 billion one time. On the synergies side, we have already implemented initiatives representing close to 17% of our targeted annual recurring efficiencies. Approximately 30% of these savings have come from procurement and technology initiatives, while the remainder has been generated primarily through the optimization of our branch network and organic downsizing. Importantly, since these initiatives have been implemented progressively throughout the year, their impact on our 2026 financial results will be partial. Their full annualized benefit will be reflected in 2027, alongside additional efficiencies that we expect to capture as we continue advancing toward our target of COP 900 billion-COP 1.2 trillion in annual recurring OPEX savings by 2028. Our priority is to translate the progress achieved through the integration into permanent improvements in our operating structure and cost base, strengthening our long-term earnings capacity. Please continue to slide 11, where I would like to illustrate how the integration strengthens Banco Davivienda's scale, competitive position, and credit risk profile. Before reviewing these figures, let me highlight an important distinction for our shareholders and analysts. As this transaction represents an internal reorganization, it does not materially affect Davivienda Group's consolidated financial figures. However, for our bondholders and fixed income analysts, we are presenting an early view of how Banco Davivienda's consolidated financial position will change following the integration. These pro forma figures are based on September 2026 figures, while the actual effects of the transfer will be reflected in Banco Davivienda's fourth quarter financial statements. Importantly, Banco Davivienda remains the issuer of our international AT1 and Tier 2 bonds. Turning to the financial impact, Banco Davivienda's consolidated assets and liabilities are expected to increase by nearly 16%, further strengthening the scale of our banking franchise. This expansion also reinforces our competitive position in Colombia, with market shares reaching approximately 16% in assets, 19% in loans, and 17% in deposits. In credit cards, the combined franchise is expected to become the market leader by both outstanding balances and number of credit cards, reaching a market share of nearly 26% by loan balances and of 20% by number, equivalent to 3.35 million credit cards. From a geographic and business mix perspective, Colombia's contribution to Banco Davivienda's consolidated assets increased from 70% to 74%, while consumer loans increased their share of the total portfolio to around 27%. Importantly, the increase in scale is accompanied by an improvement in credit risk indicators, with the 90-day past due loan ratio declining and coverage ratios strengthening by around 600 basis points. Finally, from a capital perspective, we expect a negative impact of approximately 40 to 50 basis points on Banco Davivienda's consolidated CET1 ratio, mainly reflecting the increase in risk-weighted assets following the integration. This would bring our pro forma CET1 ratio to approximately 11.75%, which is still consistent with our risk appetite and comfortably above regulatory requirements. At both the separate and consolidated levels, we maintain sound capital ratios to support the next phase of growth. With that, I will now hand the call over to Pedro, who will walk you through our financial performance in greater detail and our updated guidance for 2026. Pedro, over to you. Thank you, Javier. Please turn to slide 12, where I will review the main developments in our credit portfolio. The key takeaway this quarter is that we continue to see positive underlying loan growth across all three lending segments, with a stronger momentum than reported figures suggest. Excluding foreign exchange effects, our gross loan portfolio grew 2.0% during the quarter, compared to the reported increase of 0.9%. Looking more closely at different segments, commercial loans expanded 1.6% excluding currency effects, primarily supported by corporate lending activity in Central America, particularly in Panama and Costa Rica. Consumer lending recorded the strongest growth among our three portfolios, expanding 3.0% excluding effects, supported by positive origination dynamics in both Colombia and Central America. Meanwhile, mortgage loans increased 1.8%, excluding foreign exchange effects, mainly driven by continued growth in our Colombian operations. One particularly encouraging development was the performance of Central America, where our loan portfolio expanded 2.7% in US dollar terms during the quarter. Please move on to slide 13, where I will discuss the evolution of asset quality and the progress we have made in strengthening our loan portfolio coverage. Our consolidated 90-day past due loan ratio reached 3.74%, increasing by 10 basis points during the quarter, but improvement compared to figures seen a year ago at the bank level. Commercial lending, the increase was mainly associated with some corporate-level exposures in Colombia that were either already in stage 3 or carried conservative coverage established in advance, avoided an unexpected provisioning increase. In consumer lending, the increase primarily reflects the natural seasoning of more recent loan vintages as origination continues to expand. Meanwhile, mortgage asset quality remained relatively stable, with an improvement in the 120-day past due loan indicator. While we observe a moderate increase in delinquency, the main drivers are well-identified and actively managed, while our reserve coverage has strengthened considerably, reaching 108.2% compared with 91.5% a year ago, reflecting healthy protection levels of the integrated operations, as well as the provisioning efforts undertaken to reinforce the protection of our loan portfolio. Including collaterals, total coverage remained around 161%, providing an additional layer of protection against potential credit losses. Please move on to slide 14, where I would like to explain how we are capturing growth opportunities in consumer lending while maintaining disciplined credit risk management. The current interest rate environment, particularly at the higher interest rate ceiling in Colombia, has created new opportunities to expand lending to selected customer profiles where we can now achieve more attractive risk-adjusted returns while remaining within our established risk appetite. This has supported a sustained increase in consumer loan disbursements. Naturally, as we capture these opportunities, we are seeing some upward movement in early delinquency and recent vintages, particularly at three months on books. However, these indicators remain below their historical reference levels, consistent with a measured expansion into customer profiles with different risk-return characteristics. Importantly, this has not translated into a significant deterioration in overall credit performance. Quarterly past due loan formation and write-offs rates have remained relatively stable, reflecting our continued monitoring and management of credit risk. At the same time, net provision expenses have remained below our internal expectations, supported by positive recovery dynamics. Our priority is to continue capturing these opportunities for profitable growth, ensuring that the additional returns are appropriately balanced against the associated credit risk. Please move on to slide 15, where I would like to highlight how we continue strengthening our protection against credit risk. During the quarter, we observed a moderate increase in stage 3 exposures, mainly reflecting the evolution of identified cases. Importantly, this was accompanied by a stronger reserve coverage for these loans, which increased to nearly 60%, reflecting our efforts to reinforce protection with risks that are more concentrated. In addition, following the earthquake in Colombia, we proactively moved certain loans to stage 2, anticipating an increase in potential risk levels. Consistent with this approach, provision expenses increased by 3.1% during the quarter. Nevertheless, our nine-month annualized cost of risk remained at 2.15%, within our full-year guidance range of 2.1%-2.3%. Please move on to slide 16, where I will discuss our funding structure and liquidity position. Despite the ongoing pressure from higher interest rates and funding costs, we continue to actively manage our balance sheet to preserve financial margins while maintaining a strong liquidity position. During the quarter, total funding reached COP 220.9 trillion, decreasing slightly by 0.8%. The main development was a shift in the deposit mix as higher market rates encouraged institutional customers, in particular, to favor term deposits over lower-cost demand balances. We also observed temporary deposit outflows in regions affected by the earthquake. In response, we remain focused on strengthening transactional deposits and deepening customer relationships. At the same time, our asset-liability management strategy helps mitigate the impact of higher funding costs through asset repricing. Importantly, our short-term liquidity position strengthened during the quarter, while our longer-term liquidity ratios remain comfortably above regulatory minimums and internal risk frameworks. Please move on to slide 17, where I will discuss the evolution of our capital structure and how it supports our growth strategy. At the holding company level, Davivienda Group's consolidated equity reached COP 22.5 trillion, increasing 1.9% in the quarter, accompanied by an improvement in our tangible equity ratio, while double leverage remained roughly stable at approximately 103%. Turning to Banco Davivienda, our main regulated subsidiary, the consolidated CET1 ratio increased quarterly and annually, supported by earnings generation. Meanwhile, our total capital ratio decreased slightly during the quarter, mainly reflecting the impact of the Colombian peso's appreciation on our additional Tier 1 and Tier 2 capital components. Importantly, our capital position provides us with the capacity to advance in the integration process while capturing emerging growth opportunities under the evolving economic conditions across the markets where we operate. Please move on to slide 18, where I will discuss the main drivers of our financial margin during the quarter. Our core banking business continued to deliver positive results, with loan income increasing by 1.1%, while financial expenses rose by only 0.6%, reflecting a relatively moderate increase in funding costs despite the high interest rate environment. These positive dynamics were offset by lower investment income following the exceptionally strong valuation gains recorded in the second quarter, when market conditions made a significant contribution to our financial results. Importantly, our foreign exchange and derivatives strategy helped mitigate this impact. While net interest income decreased by 9.5%, the reduction was limited to 3.2% when including foreign exchange and derivatives, highlighting the contribution of our active market and interest rate risk management. As a result, while NIM excluding foreign exchange and derivatives decreased by 60 basis points, NIM including these effects decreased by only 18 basis points. On a nine-month annualized basis, NIM including foreign exchange and derivatives stood at 5.95%, remaining within our full-year guidance range of 5.8%-6.1%. Overall, the quarter demonstrates how the positive performance of our lending activities, together with our hedging strategy, continues to support margin resilience despite the normalization of investment income. Please move on to slide 19, where I will discuss the performance of our non-financial income and operating expenses. Starting with fee income, we continue to see positive momentum, with revenues increasing by 7.5% during the quarter, supported by stronger activity in cards, collection, cash management, insurance, and acquiring services. This performance contributed to a 4.4% increase in total non-financial income, reinforcing the contribution of our transactional businesses to the group's revenue generation. On the expense side, operating expenses increased by 2.0% during the quarter, while our nine-month cost-to-income ratio, calculated by allocating the wealth tax throughout the year, stood at 54.4%. This is particularly relevant considering the larger operating expense base resulting from the integration of the new operations. Our ability to absorb these additional costs while maintaining efficiency around 54% reflects the contribution of our income generation and continued discipline in expenses management. Importantly, we still see opportunities to further improve efficiency as the integration synergies progressively materialize, providing an avenue to strengthen the group's earnings capacity to advance toward our medium-term profitability objectives. Please move on to slide 20, where I will summarize our profitability for the third quarter and the first nine months of the year. Net profit reached COP 720 billion during the quarter, broadly in line with our expectations. Accounting ROAE stood at 12.91% for the quarter, while our adjusted core performance ROAE reached 11.16%, excluding the effects of the wealth tax, purchase price allocation, and other non-core items. Looking at the first nine months of the year, accumulated net profit reached COP 1.85 trillion, with an accounting ROAE of 11.2% and a core performance ROAE of 11.13%. Please move on to slide 21, where I will discuss our updated guidance for the remainder of 2026. Starting with loan growth, we maintain our overall expectation of 4%-6% for the year, although we have adjusted the expected contribution by segments. In consumer lending, we increased our growth guidance to 5%-7%, reflecting stronger disbursement activity and the opportunities we are capturing under the current interest rate environment. Meanwhile, we adjusted our commercial lending expectation to 3%-5%, while mortgage growth remains unchanged at 4%-6%. From a credit risk perspective, we maintain our 90-day past due loan guidance between 3.3% and 3.8%, and our cost of risk expectation between 2.1% and 2.3%. Turning to margins, our NIM guidance, including foreign exchange and derivatives, remains between 5.8% and 6.1%. We are increasing our non-financial income growth expectation to 12%-14%, supported by the positive performance of our fee generation businesses. We continue to expect our cost-to-income ratio to close the year at around 54%. Supported by these trends, we are raising our full-year ROAE guidance to 10.5%-11.5%. Overall, these updated expectations reflect the progress of our underlying banking businesses. We remain focused on building upon this performance as we progress toward the group's earning potential. Thank you. We can now move on to the Q&A session. Thank you. With that, we will begin the question-and-answer session. We will first take the questions from the phone call and then read the webcast questions. If you are joining us by phone and would like to ask a question, you may now raise your hand by pressing the star button, followed by number 5. If you're using a speakerphone, you may need to pick up your handset before pressing the keys. For webcast participants who wish to send questions through chat, click the button with the question mark at the bottom of the webcast screen. If you have more than one question, we recommend sending a single message with all your questions. Right now, we're standing by for questions. Our first question comes from Mr. Ernesto Gabilondo from Bank of America. Mr. Gabilondo, you may now open your microphone. Your line is open. Thank you. Hi, good morning, Javier, Pedro, and Paula. Congrats on your results, and thanks for the opportunity to ask questions. I have a couple from my side. The first one will be on OPEX growth. How should we think about the OPEX growth next year, considering the potential synergies from Scotiabank, but also including this one-time integration cost? I am aware that you're still not providing guidance for 2027, but just to have the trend on how should we expect the OPEX growth next year will be helpful. My second question is on your earnings expectations for next year also. I know it's not with the guidance, but what would be the key drivers and the two key risks that you are seeing for earnings next year? Thank you. Ernesto, good morning, and thank you for your questions. Yes, definitely for next year, one of the main issues, as you mentioned, will be the integration costs and, of course, the synergies that we will be capturing along the year. We are not releasing at this time 2027 guidance, but I can give you some color on how we see the trends. There will be still a significant investment in the integration and the integration process. If you take aside the specific integration expenses, what we will have is a growth of operating expenses close to inflation, a little bit more than inflation, probably because of labor expenses going up. That should be offset also with some of the synergies that we will be capturing during the year. Let me remind you that this year, we only incur part of the operational expenses, around 12% on the integration costs. We still have 88% of those costs to be incurred next year. At the same time, we will be capturing some of those synergies. Already 17% of the target has been captured on a recurring rate for next year. It is going to take a few more months than what we expected because in terms of the integration, we decided to go on a two-stage integration structure in which we just went through the first phase, which was November 1, where all the customers and their products from DAVIbank moved into Davivienda. That already happened, but we still have the two technology stacks running side by side. We will partially start migrating those customers into the Davivienda platform early next year, so we will not be able to capture the synergies of shutting down the DAVIbank platform until later in the year, probably the second quarter of next year. In Panama, we are going a little bit ahead of that schedule. We already moved the personal banking customers into the platform that will be the long-term platform, which was the DAVIbank platform. In Costa Rica, that will take some more time. We are about six months behind the Colombia schedule in Costa Rica. I would say, if you take away the integration expenses, our goal is to have the growth of operating expenses below inflation. That is our target for next year. Looking into earnings, the second question, some of the drivers will be, of course, the macro environment. What we are seeing now is a 2% GDP growth expectation for growth for next year. That is dependent on the fiscal adjustment that is going through Congress. If it goes through, which we will expect it to go through, probably next year growth will be a little bit lower, although we believe that is on the right direction because the fiscal adjustment is clearly needed. If that happens, what we will see is an increase in investments, and that increase in investments, of course, opens up an opportunity for growth on some of our portfolios, specifically in the commercial loans portfolio. So, we expect a stable NIM and cost of risks, and where we see some uncertainty will be on growth based on what I mentioned on the macro environment. Thank you for your question, Ernesto. No, thank you very much. Thank you. At this point, we will take on our webcast questions. Our first question comes from Mr. Tiago Pino from Bradesco BBI. His question reads, "Loans are up approximately 2% year-to-date versus guidance of 4%-6%, and DAVIbank's loan book shrank approximately 2% quarter-over-quarter. What loan growth do you expect 2027, and could the operational integration weight on loan origination or client retention? Also, with approximately 12% of integration costs incurred below the COP 170 billion planned, and approximately 4% of synergies reflected in the P&L, how should we think about the phasing of remaining costs and synergies in 2027? Are the 2028 to 2029 targets of 43%-45% cost-to-income and 14%-16% ROAE still valid?" Thank you. Tiago, thank you for your questions. Regarding the first one, in terms of loan growth, let me just give you some more detail on why the DAVIbank book shrank. It shrank because some of the portfolio, especially in the commercial loan portfolio, was a portfolio for the corporate segment at interest rates that were below the expected rate that we are having for our customers. So, we decided that these loans that came from earlier, from before the integration, were loans that we were comfortable not renewing them. So, that's a conscious decision and part of that book that we already did that, so we don't expect that to be a recurring reduction on the size of the book. And there was also a reduction for some intercompany loans that we have with some of our subsidiaries that came out of DAVIbank. That was part of the integration strategy at the end of last year. We already own those positions, so we don't have that looking forward. In terms of growth, going forward, what we are seeing at the same time is strong growth on the Davivienda book, on the Davivienda platform, a strong growth on commercial, consumers also growing at a strong rate, as well as the mortgage book. Once we integrate, we're not expecting the operational integration to have some kind of negative impact on growth origination. On the contrary, we believe that having those teams together, we are ready to be more focused on growth. One of the benefits of what we did last week or a couple of weeks ago with the integration was the fact that we already consolidated the teams into one single team. Even though we still have to migrate the customers from an existing platform, on the DAVIbank platform to the Davivienda platform, in terms of growth and in terms of the activity of our sales teams, they are already being integrated, and what we expect is actually a stronger platform for growth. Regarding your second question, in terms of integration costs, it is very similar to what I already mentioned in the first question. Our targets, let me start by the end of your question. We are firmly on track to that 43%-45% cost-to-income ratio that we have guided before for the 2028, 2029 target, as well as the 14%-16% ROAE. The plan is going along our expectations with some delays that are conscious delays, but some decisions that we have taken in terms of migrating the customers on a more careful way. But in terms of our expectations on the numbers, we are still behind the numbers that we guided a couple of quarters before. Thank you, Tiago, for your question. Thank you very much. Our second participant, Daniel Mora from Credicorp Capital, asks the following questions. "Following the partial transfer of DAVIbank's assets to Davivienda, what is the strategic purpose of the new Lambda Bank, and what steps remain before reaching the final corporate structure?" Also, demand deposits declined as clients shifted towards higher-yielding products, but the decline was larger than the increase in time deposits. What explains this gap, and what is your outlook for demand deposits given the current competitive environment? Thank you. Daniel, thank you for your question. Regarding Lambda Bank, let me answer it by saying that there is no strategic purpose within the banking activities that we have. It is just a transition name that we are using. Take into consideration that all the DAVIbank banking business, including the customers as well as the loans and deposits, were transferred to Davivienda. The DAVIbank brand was also transferred to Davivienda, so now within the scope of Banco Davivienda, we run the business with the Davivienda brand as well as the DAVIbank brand, being still DAVIbank a transitional brand. But we still have the existing legal entity that was DAVIbank. That existing legal entity still has a banking license, so it has to have a brand with a reference to a bank. The name Lambda Bank is just a transitional name. We expect to get rid of the banking license in the following weeks. Once that happens, it won't be named Lambda Bank, it will be just an SPV, Lambda SPV. In that sense, it's just a transition as part of the process with the authorities that we have to go through. That SPV will be one more of the SPVs under the umbrella of Davivienda Group, and we'll have that as an entity that does some investments. One of them will be an investment in Holding Davivienda Internacional, which is the holding company that owns our operations in Central America. The structure of the transaction, as we presented during the initial remarks, is DAVIbank transferred all the banking business to Davivienda, and in exchange, it got an investment in Holding Davivienda Internacional. Lambda Investments will actually just be a company by which Davivienda Group will indirectly hold a stake on Holding Davivienda Internacional. In terms of the final corporate structure, eventually, we have on the roadmap the possibility of having Holding Davivienda Internacional with sister company to Banco Davivienda. We're not there yet. Banco Davivienda still controls Holding Davivienda Internacional. The structure is going in that direction. Regarding your second question on demand deposits and yielding products, it's clear that in an environment in which interest rates rise, that's something that naturally happens between non-yielding deposits and yielding deposits. Part of that movement is movement. But if you look at the specific numbers for the second and third quarter, there are some seasonality at the end of the second quarter, and on the payroll accounts, there's a legal payment, additional higher deposits at the end of the quarter, for the second quarter. That seasonality effect, you compare it to the third quarter. We keep very committed to maintaining a structure in which low-cost demand deposits are part of the strategy. What we call moving money is a strategy in which we're working very hard. Of course, there's a lot of competitive pressure. We all have that competitive pressure going for those same resources, but we believe that we are very well positioned with the products that we have and the digital platforms that we have in terms of maintaining that percentage of funding through local deposits. Thank you, Daniel, for your question. Thank you. Our next submission comes from Mr. Juan Cifuentes from Citi. His submission reads as follows: "Hi, Juan from Citi. First, congratulations on the solid quarterly results. How do you see Davivienda capitalizing on commercial lending tailwinds currently emerging across the Colombian financial system, driven primarily by renewed investor confidence and improving macroeconomic market sentiment? Do you see increased growth on Davivienda's commercial lending book? Thank you. Thank you, Juan, for your question. Yes, we believe that what is happening in terms of renewed investor confidence and the fact that the government is actually proactively looking to promote investments in some projects in the country actually will help the commercial book grow. We see that especially at the top end of the market in the corporate sector. We are expecting that to be one of the drivers of growth for next year. We will be focused on top-tier corporates. Of course, we expect growth along all the book, but specifically that these tailwinds that you mentioned, we see them more directed towards the corporate sector. We will be also taking advantage of the new structure that we have with the combined equity of what Davivienda had and what Scotiabank brought to the table with the integration. We have a larger equity base that can be used to sustain larger tickets for corporate customers, both in Colombia as well as in the region. At the same time, we have our agreement with one of our shareholders, with Scotiabank, that also help us be part of larger transactions within the corporate segment. Definitely we see opportunities there. We are actively looking for those opportunities. I guess the variable that we have to take into consideration in terms of that growth is funding. We will be very careful on funding to make sure that our NIM stays at the levels that we've been guiding. Other than that, we definitely see opportunities in that segment. Thank you, Juan, for your question. Thank you very much. Our next submission comes from Mr. Diksha Agrawal from TCW. His question reads as follows: "Good morning. Given the 40 to 50 basis point impact, what's the capital floor that governs loan growth and dividends? Thank you. Diksha, thank you for your question. We feel comfortable at 11% levels for CET1, so we're still above those levels comfortably. We are not seeing a limitation on loan growth and dividends at this time. We believe that with the structure that we have, we still can support the growth that we're expecting for next year. Thank you for your question. Thank you very much. There are no further questions at this time. I want to turn the floor back to Mr. Javier Suárez for any closing remarks. Mr. Suárez, the floor is yours. Well, this has been a quarter, a very interesting quarter for us because we've been moving forward with the integration with the operations of Scotiabank, with Davivienda. There was a very significant milestone a couple of weeks ago when we integrated the operations in Colombia, as well as started the migration of customers in Panama. We're very excited to see that we were able to improve the service, improve profitability, and improve the quality of the operation of Davivienda before the integration. We are very enthusiastic about the opportunities of the consolidated bank going forward because the ability that we had to improve the operations of Davivienda close to a level of the operations of Davivienda give us the sense of opportunity for next year. We're working hard on integrating those teams and making sure that we take advantage of the growth opportunities that come from a stronger team. At the same time, we've been working on many other value propositions for our customers that we'll be announcing to the market in the coming months. We're very excited about what's coming for Davivienda for next year. Thank you very much for being here with this call, and we are expecting you to be part of the call for the end-of-year results. Thank you very much, and have a good day. Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect from the call.