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• Net Income: COP1.7 trillion, reflecting a 4.5% growth both quarterly and annually.

• Net Interest Margin (NIM): Over 6.4%.

• Return on Equity (ROE): 16.3%.

• Loan Portfolio: Decreased slightly this quarter, but grew 7% annually.

• Deposits: Fell by 1% in the quarter, increased almost 13% annually.

• Cost of Risk: 1.6% for the period.

• Total Solvency Ratio: Nearly 13%.

• Core Equity Tier 1 Ratio: 11%.

• Dividend Payout: COP69 million total for the year, including an extraordinary dividend of COP624 per share.

• Operating Expenses: Decreased 7.7% compared to the previous quarter.

• Efficiency Ratio: Fell to 49.6%.

• Shareholders' Equity: Fell 6.7% quarter over quarter, grew 11.4% year over year.

• Loan Growth Guidance for 2025: Approximately 5%.

• Net Interest Margin Guidance for 2025: Around 6.2%.

• Cost of Risk Guidance for 2025: Decreasing to a range of 1.8% to 2%.

• Return on Equity Guidance for 2025: Between 14.5% and 15%.

• Warning! GuruFocus has detected 7 Warning Sign with CIB.

Release Date: May 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• BanColombia SA (NYSE:CIB) reported a quarterly net income of COP1.7 trillion, reflecting a 4.5% growth both quarterly and annually.

• The company achieved a robust Net Interest Margin (NIM) of over 6.4%, contributing to a strong Return on Equity (ROE) of 16.3%.

• Asset quality improved with a cost of risk at 1.6%, supported by lower delinquency rates and effective credit risk models.

• BanColombia SA (NYSE:CIB) maintained a strong capital position with a total solvency ratio of nearly 13% and a core equity Tier 1 ratio of 11%.

• The merger of Bancolombia La Mano with NECI is expected to enhance operational efficiencies and profitability, with NECI projected to reach breakeven by the first quarter of 2026.

Negative Points

• The loan portfolio slightly decreased in the quarter, although it grew 7% annually, indicating potential challenges in sustaining growth.

• Deposits fell by 1% in the quarter, despite a 13% annual increase, highlighting potential issues in maintaining funding levels.

• The fiscal situation in Colombia remains a significant challenge, with a high fiscal deficit and recent suspension of the IMF Flexible Credit Line.

• Interest income fell by almost 3% in the quarter due to lower-yielding loans and securities, despite a drop in interest expenses.

• Operating expenses increased by 9.8% annually, driven by IT-related costs and annual wage increases, impacting the efficiency ratio.

Q & A Highlights

Q: Can you explain the increase in personal expenses, particularly bonuses, and your expectations for margins given the competitive funding environment in Colombia? A: (Juan Carlos Mora Uribe, CEO) We've been managing costs effectively, but the central bank's slower-than-expected rate cuts may impact margins. We expect the reference rate to end the year around 7.5%, with a risk of it being 8%. This could help defend interest income. (Mauricio Botero, CFO) The increase in bonuses is due to higher net income expectations this year compared to last year, leading to higher provisions for bonuses from the start of the year.