Colombian Banks Post 44% Higher Profit as DaviPlata Becomes a Neobank

Colombia · Business

Colombian banks profit surged approximately 44% year-on-year through mid-2025, driven by a sharp earnings recovery at major institutions and the formal arrival of DaviPlata as a full-scale neobank within the Davivienda Group.

A sector-wide profit rebound takes hold

Colombia’s banking sector has emerged from a prolonged downturn with some of its strongest profit figures in years. Data from the Superintendencia Financiera de Colombia (SFC) shows that banks posted net profits of COP 6.9 trillion (USD 1.8 billion) at end-May 2025, marking a 43.8% increase compared with the same period a year earlier.

When the broader credit establishment segment is included, profits reached COP 7.7 trillion, up from COP 5.5 trillion in 2024. Full-year estimates for 2025 point to an even steeper climb, with one sector study recording bank net earnings of COP 14.2 trillion, a 71% leap from the COP 8.3 trillion reported in 2024.

The recovery has been broad-based but highly concentrated. Three institutions dominate over 90% of banking profits, with Bancolombia firmly in first place and Davivienda in second.

Davivienda’s dramatic turnaround

Banco Davivienda has been one of the standout performers in Colombia’s profit recovery. By September 2025, the bank had posted an annual profit surge of 208.3%, reaching COP 1.2 trillion and securing its position as the country’s second-most profitable lender behind Bancolombia.

For the full year 2025, Davivienda Group reported net income of COP 2.06 trillion (USD 504 million), with COP 964 billion (USD 236 million) generated in the fourth quarter alone. Core banking profit, excluding one-off gains from the Scotiabank acquisition, reached COP 1.48 trillion (USD 362 million), comfortably surpassing prior-year levels.

The group’s December 2025 acquisition of Scotiabank operations in Colombia, Costa Rica, and Panama added COP 263 trillion (USD 64.3 billion) in total assets and expanded its customer base to 27 million across six countries. This regional scale now underpins Davivienda’s ambition to become a genuine multilatina banking force.

DaviPlata’s leap from wallet to neobank

The most consequential digital move in Colombian banking arrived in October 2025, when DaviPlata formally consolidated its evolution from a low-amount digital wallet into a full neobank. Davivienda’s leadership described the shift as a historic leap, repositioning the platform as the group’s official digital banking arm while maintaining its focus on simplicity and zero-fee services.

The transformation involved a total relaunch of the DaviPlata app, adding a suite of products that had previously been absent. Users gained access to a 100% digital credit card with no handling fee, a high-yield savings pocket offering around 8.25% annual effective rate paid monthly, and nanocredits starting at approximately COP 50,000 aimed at small businesses and daily-expense users.

Digital debit card integration with Google Pay and Apple Pay followed, alongside alliances with Mastercard for global e-commerce and contactless payments. By March 2026, customers were able to add digital debit cards to Android wallets and access revolving credit directly from the app.

What Colombian banks profit growth means for investors

The profit surge across Colombian banks signals a meaningful recovery in consumer and business lending after a period of high interest rates and cautious provisioning. For international investors, the numbers suggest that Colombia’s largest financial institutions have rebuilt earnings momentum while simultaneously investing in digital infrastructure that lowers customer acquisition costs.

Davivienda’s case is instructive. The bank’s return on average equity reached 8.98% for 2025, and management has guided toward double-digit returns as DaviPlata scales toward its break-even point around 2026. With 19 million users, DaviPlata is now a material revenue contributor, generating COP 205 billion (USD 50 million) in 2025 and posting 59% year-on-year income growth in the first quarter of 2026.

The broader read-through is that Colombian banking profits are increasingly tied to digital retail platforms rather than purely to corporate loan books. Neobanks like DaviPlata and Nequi are capturing mass-market segments that traditional branch networks struggled to reach, creating new revenue streams from low-ticket lending, payments, and savings products.

The Latin America digital banking race heats up

Colombia’s neobanking landscape now ranks among the most dynamic in Latin America. Nequi leads with over 24 million users, DaviPlata follows with 19 million, and Movii remains a relevant challenger, creating a competitive trio that mirrors battles playing out in Brazil, Mexico, and Argentina.

What distinguishes Colombia is the speed at which incumbent banks have embraced the neobank model rather than resisting it. Davivienda has no plans to spin off DaviPlata as a separate entity, choosing instead to keep it inside the group perimeter where it can cross-sell to existing customers and feed data into the parent bank’s credit engines.

For expats and foreign professionals living in Colombia, the practical implications are immediate. DaviPlata’s new credit card targets foreign residents explicitly, and the platform’s fee-free structure and digital onboarding remove many of the friction points that have historically made local banking difficult for newcomers.

What to watch in the months ahead

The next milestone for DaviPlata will be reaching sustainable profitability, which Davivienda’s chief executive has indicated should occur around 2026. Investors will be watching whether the platform’s low-balance deposit base and nanocredit portfolio can scale without triggering the credit losses that often accompany rapid expansion in mass-market lending.

Regulatory clarity around neobank licensing also remains an open question. While DaviPlata operates under Banco Davivienda’s licence and is consistently described as a neobank in official communications, the absence of a standalone banking licence could become a constraint if regulators eventually require separate capital and governance structures for systemically important digital platforms.

Across the sector, the profit trajectory will depend on whether Colombia’s central bank continues easing monetary policy, which would further reduce funding costs and provisioning needs. If the rate cycle remains favourable, the 44% profit growth seen in mid-2025 could prove to be a floor rather than a peak.

Frequently Asked Questions

How much did Colombian banks profit grow in 2025?

Colombian banks reported net profits of COP 6.9 trillion at end-May 2025, a 43.8% increase year-on-year according to the Superintendencia Financiera de Colombia. Full-year estimates suggest bank net earnings reached COP 14.2 trillion, up 71% from COP 8.3 trillion in 2024, though figures vary depending on whether the measurement covers banks alone or the broader financial sector.

When did DaviPlata become a neobank?

DaviPlata consolidated its evolution from a digital wallet into a full neobank in October 2025, expanding its product suite to include digital credit cards, nanocredits, and high-yield savings accounts. The transformation was accompanied by a total app relaunch and integration with Google Pay and Apple Pay, with revolving credit features rolling out by March 2026.

Is DaviPlata profitable yet?

DaviPlata generated COP 205 billion (USD 50 million) in revenue for full-year 2025 and posted COP 68.1 billion in income during the first quarter of 2026, up 59% year-on-year. Davivienda’s management has guided that the platform should reach its break-even point around 2026, though it is not yet a major profit centre compared with the group’s traditional lending operations.

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