Colombia’s Grupo Aval Sees Resignations as Itaú Clients Move

Colombia · Banking

Grupo Aval vice president resignations at Banco de Bogotá coincide with the August migration of roughly 267,000 Itaú Colombia personal banking clients in a sweeping moment of governance change and market consolidation for Colombia’s largest financial conglomerate.

Senior Leadership Departures Rock Banco de Bogotá

On March 19, 2026, Banco de Bogotá’s board announced that César Prado Villegas had resigned as president (CEO) of Colombia’s oldest commercial bank, effective the following day. Prado, who had led the institution for roughly two years and eight months, stepped down for personal reasons, according to an official statement from the Banco de Bogotá, a subsidiary controlled 68.9% by Grupo Aval.

The board moved quickly to name Juan Carlos Echeverry, a former Colombian Finance Minister and ex-CEO of state oil company Ecopetrol, as the new president. Echeverry was confirmed by the shareholders’ assembly and is scheduled to assume the position on May 6, 2026.

The high-profile appointment aligns with Grupo Aval’s 2031 strategy emphasizing greater leadership, efficiency and digital transformation.

267,000 Itaú Colombia Personal Banking Clients Begin the Transition

Brazil’s Itaú Unibanco agreed to exit personal banking in Colombia and Panama through a deal that transfers its retail client portfolio—current accounts, savings accounts, consumer loans, mortgage loans and deposits—to Banco de Bogotá. Our reporting has shown that Itaú’s pullback is not a sign of weakness but of capital discipline: the bank is cutting a low-return retail business to focus on higher-margin corporate banking where it claims it wins, a strategic recalibration that echoes similar retreats by foreign lenders across Latin America. Colombia’s financial regulator, the Superintendencia Financiera, formally authorized the transfer of assets, liabilities and contracts on June 16, 2026.

The portfolio covers around 267,000 retail customers, not 250,000, with approximately COP 6.5 trillion (about USD 1.7 billion) in consumer and mortgage loans and roughly COP 4.1 trillion (about USD 1.1 billion) in deposits. During the migration period, Itaú Colombia stated that it would maintain normal service operations for clients until the transition to Banco de Bogotá’s systems is fully completed.

Grupo Aval’s Broader Governance Consolidation

The leadership change at Banco de Bogotá is not occurring in isolation. Luis Carlos Sarmiento Angulo, Grupo Aval’s longtime controlling shareholder, publicly announced during an assembly held at Banco de Bogotá’s headquarters that he would step down from the conglomerate’s board of directors.

This move marks a significant generational and governance shift at the top of a group that holds over USD 90 billion in assets, making it the largest non-Brazilian financial group in Latin America.

Simultaneously, Grupo Aval completed the creation of Aval Fiduciaria S.A., a new subsidiary that consolidates all asset management and fiduciary businesses previously operated separately by Banco de Bogotá, Banco de Occidente and Banco Popular. The partial spin-off of the three fiduciaries was authorized by the Superintendencia Financiera de Colombia in September 2025, and Aval Fiduciaria formally began operations on January 1, 2026, creating the largest fiduciary entity in Colombia by assets under management.

Why This Matters for Investors and Expats

For foreign investors and expats banking in Colombia, the wave of changes at Grupo Aval signals a period of strategic repositioning that could affect service quality, product offerings and the competitive landscape. The absorption of a large foreign bank’s personal clients into a legacy Colombian institution places pressure on Banco de Bogotá to integrate systems without disruption, especially for cross-border customers accustomed to Itaú’s international platform.

The conglomerate also continues to navigate legal and compliance challenges. Grupo Aval and its subsidiary Corficolombiana entered a three-year deferred prosecution agreement (DPA) and paid total penalties of USD 80.8 million—comprising USD 40.6 million in criminal penalties plus USD 40.2 million in prejudgment interest and disgorgement—under a US. Foreign Corrupt Practices Act (FCPA) settlement.

The resolution creates an ongoing compliance burden that the new management team must address while delivering on ambitious growth targets.

Retail Banking Market Share Gets a Jolt

Banco de Bogotá’s acquisition of Itaú’s personal banking division is the institution’s single largest inorganic growth step in years, immediately bolstering its retail market share and strengthening its position as the main banking arm of Grupo Aval. The deal reshapes the competitive map in Colombian retail banking by removing a major international player from the personal segment while empowering a dominant domestic incumbent.

Banco de Bogotá ended fiscal 2024 with a market capitalization of COP 14.49 trillion (approximately USD 4.2 billion) and consolidated net profit of COP 1.090 trillion (approximately USD 316 million). The addition of roughly 267,000 clients and the accompanying loan and deposit portfolios is expected to enhance the bank’s scale and profitability as it pursues Grupo Aval’s long-term digital-first retail vision.

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Frequently Asked Questions

Why did the president of Banco de Bogotá resign?

César Prado Villegas resigned as president of Banco de Bogotá for personal reasons, according to an official statement. His resignation was effective March 20, 2026, after roughly two years and eight months leading Colombia’s oldest bank.

How many Itaú Colombia clients are moving to Banco de Bogotá?

Approximately 267,000 personal banking clients, not 250,000, are migrating from Itaú Colombia to Banco de Bogotá alongside their loans and deposits. The transfer was authorized by Colombia’s financial regulator in mid-2026.

What happens to Itaú’s corporate banking in Colombia after this deal?

Itaú retains its corporate banking operations in Colombia. The agreement transfers only the personal banking business—including individual checking accounts, savings, consumer loans, mortgages and deposits—to Banco de Bogotá.