Grupo Cibest S.A. Q1 FY2025 earnings call

• Economic Context: Colombian economy recovered with stable inflation, unchanged rates. Fiscal situation impacted by public spending and tax collection. - Operational Highlights: Merger of Bancolombia A la Mano and Nequi to enhance financial inclusion, with Nequi expecting growth in deposits and loans. Market share gains in retail deposits and credit cards. Central American operations performance. Transition to Grupo Cibest, share buyback plan, and app migration to Mi Bancolombia app with 8.5M users migrated. ESG initiatives with recognition as Colombia's top ESG company for 6th year.

Financial Performance: Quarterly net income was COP1.7 trillion, up 4.5% Q/Q and Y/Y. NIM was over 6.4% with ROE at 16.3%. Loan portfolio decreased slightly in quarter but grew 7% annually; deposits fell 1% Q/Q but rose almost 13% Y/Y. Cost of risk was 1.6%. Banistmo saw reduced provision expenses. Capital remained strong with total solvency ratio ~13% and core equity Tier 1 ~11%. Revenue Contribution: Retail segment saw market share gains in savings and time deposits (+110 bps Q/Q), credit card loans market share up 20 bps. Nequi had deposits up 70% Y/Y, aiming for loan portfolio growth and breakeven in Q1 2026. Central American operations: Banco Agricola El Salvador profitable, Banistmo Panama net income up 11.5%, BAM Guatemala showing improvement though with consumer loan concerns.

• Revised GDP growth for 2025 to 2.6%, 2026 to 3%. - NIM expected to be around 6.2%. - Cost of risk targeted in range 1.8%-2%. - Efficiency ratio projected ~51%. - ROE expected between 14.5%-15%. - Loan growth guidance: commercial loans +4%, mortgage loans +4.5%, consumer loans +8%.

• Global economic and business conditions, currency exchange rates, interest rates. - Competition and acceptance of new products. - Business strategy changes. - Fiscal situation in Colombia, including high fiscal deficit. - Political uncertainty in Colombia, impact of oil prices on economy and fiscal deficit.

Q: Regarding bonus line and margins, what's the outlook?

A: Mauricio explained bonus line related to higher net income expectations. Juan Carlos discussed margins and interest rate expectations affecting NIM.

Q: On political and economic outlook, fiscal situation?

A: Juan Carlos and Laura Clavijo discussed early election uncertainty and high fiscal deficit as key challenges.

Q: On subsidiaries ROE and net income guidance?

A: Juan Carlos and Laura Clavijo discussed ROE targets for subsidiaries and cautious net income guidance due to external factors.

Q: On oil prices impact and provisioning?

A: Laura Clavijo discussed oil price impact on GDP and fiscal forecast, Juan Carlos on cautious provisioning due to macro risks.

Q: On provisions, growth, and Breve impact?

A: Mauricio discussed positive provisions and growth guidance, Juan Carlos on mild impact of Breve on fees.

Q: On margin guidance and loan growth risk?

A: Juan Carlos discussed margin guidance with potential upside and loan growth depending on macro and political factors.

Q: On capital plans and buyback?

A: Mauricio and Juan Carlos discussed capital structure, buyback plan, and flexibility with Grupo Cibest.

Q: On ROE and capital leverage?

A: Juan Carlos discussed long-term ROE target of 16% and capital flexibility with Grupo Cibest.

Q: On capital plans and Tier 2 capital?

A: Mauricio discussed capital position, buffer, and future capital options with Grupo Cibest