Bancolombia (CIB) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was COP 1.4 trillion (USD 347.1 million), down 13.4% sequentially, with annualized ROE at 15.3% and stable asset quality.

• Achieved 3% loan growth, mainly from commercial loans in Colombia, and maintained a leading market position in Colombia and Central America.

• Digital customer base expanded to 8.7 million app users and over 26 million financial inclusion platform accounts.

• Recognized for sustainability and corporate governance, including S&P Gold Class and Dow Jones Sustainability Indexes.

• Appointed a new CFO and launched a reduced-rate mortgage loan program to stimulate the housing sector.

Financial highlights

• Total assets reached COP 352.2 trillion, up 4.5% from 1Q24; shareholders' equity rose 7.5% quarter-over-quarter to COP 39.2 trillion.

• Net interest margin was 7.05% for Q2 2024, down from 7.14% in 1Q24; net interest income was COP 5.19 trillion.

• Fee income grew 11.2% quarter-over-quarter and 10.2% year-over-year, with a fee income ratio of 20.1%.

• Operating expenses increased 3.4% quarter-over-quarter, with efficiency ratio at 48.8%.

• Dividend per share for 2024 is COP 3,536.

Outlook and guidance

• Loan growth expected at 8% for 2024, with NIM guidance at 6.8%, cost of risk between 2.2% and 2.4%, efficiency ratio around 50%, and ROE between 14% and 15%.

• For 2025, NIM expected at 6.5%, cost of risk between 2% and 2.2%, and ROE in the 13.5%-14% range.

• Strategic focus on sustainable development, digital transformation, and financial inclusion, with a goal to mobilize at least COP 500 trillion in sustainable finance by 2030.

• Management notes ongoing risks from economic conditions, currency volatility, and interest rate changes.