Colombia’s two largest banks are also its best performing. Medellín-based Bancolombia, the biggest in the country with Tier 1 capital of $6.08bn, is the second best performing. Banco de Bogotá, part of Grupo Aval, is the second largest with a Tier 1 capital of $3.97bn, but has the highest performance score out of the country’s largest five names.
Liquidity and leverage indicators drive Banco de Bogotá’s overall performance. The former is determined by the loans-to-assets ratio and the loan-to-deposit ratio, combined with their annual changes. The latter measures the liabilities-to-assets ratio and its annual change. Banco de Bogotá has the highest score in both, and came second in the profitability and soundness metrics.
