Bancolombia (CIB) Q1 2025 earnings summary

Executive summary

• Net income reached COP 1.7 trillion in 1Q25, up 4.5% both quarter-over-quarter and year-over-year, with ROE at 16.3% and NIM of 6.4%.

• Loan portfolio decreased slightly in the quarter but grew 7% annually; deposits fell 1% sequentially but rose 13% year-over-year.

• Shareholders approved the transition to Grupo Cibest, with an extraordinary dividend of COP 624 per share and a share buyback program planned.

• Digital platforms, including Nequi and "Mi Bancolombia" App, expanded user base and operational efficiency, with Nequi users up 21% YoY to 23.5 million.

• Asset quality improved, with cost of risk at 1.6% and lower delinquency ratios across all segments.

Financial highlights

• Net interest margin (NIM) remained strong at 6.4%, with net interest income up 1% sequentially.

• Fee income fell 8% quarter-over-quarter but rose 9.7% year-over-year.

• Operating expenses decreased 7.7% sequentially, improving efficiency to 49.6%.

• Shareholders' equity fell 6.7% sequentially due to dividend payout, but grew 11.4% year-over-year.

• Basel III CET1 capital ratio at 11.16%, total capital ratio at 12.91%.

Outlook and guidance

• 2025 guidance: loan growth ~5%, NIM ~6.2%, cost of risk 1.8%-2%, efficiency ratio ~51%, ROE 14.5%-15%.

• Inflation forecast revised to 4.4% and policy rate to 7.5% for year-end.

• Cautious outlook on net income and ROE due to macroeconomic uncertainties.