Davivienda Rallies on Outlook for 19% Profit Gain: Bogota MoverChristine Jenkins
Banco Davivienda SA, Colombia’s third-biggest bank, rose to a record as analysts projected it will report this week a 19 percent increase in annual profit.
Shares climbed 0.5 percent to 26,140 pesos at 1:20 p.m. in Bogota after reaching an intraday record high of 26,420 pesos. The stock has returned 11 percent this year, the best performance after Cemex Latam Holdings SA on the Colcap index, which has declined 0.7 percent.
Davivienda will report a boost in 2012 profit from a year earlier to 750 billion pesos ($414 million), according to the average estimate of five analysts surveyed by Bloomberg. The bank is due to publish earnings on March 8.
The bank’s profit “isn’t looking bad at all,” Juan Camilo Dominguez, an analyst at brokerage Correval SA, said in a telephone interview. “There was a bit of fear over the profitability of its Central American operations, and that fear has been passing.”
Last year, Davivienda completed the $801 million acquisition of HSBC Holdings Plc’s assets in Costa Rica, El Salvador and Honduras.
The bank agreed to buy Corredores Asociados SA, the Andean nation’s biggest independent brokerage, for 120 billion pesos plus an additional amount that will depend on the brokerage’s profit, Davivienda Chief Executive Officer Efrain Forero said last week.