Bancolombia (CIB) Q4 2025 earnings summary

Executive summary

• Achieved COP 3.8 trillion in net income and 9.1% ROE, impacted by a one-off COP 3.4 trillion impairment from Banistmo's divestment; excluding this, net income would have been COP 7.3 trillion and ROE 17.2%.

• Digital businesses Nequi and Wompi reached breakeven in Q4, with digital platforms showing double-digit growth in users, transactions, and financial income.

• Proposed dividend of COP 4.3 trillion (COP 4,512 per share), a 14.6% annual increase, with a 60% payout ratio, to be paid in four installments.

• Share buyback program executed 31.9%-32% of authorized amount, supporting a 37% share price appreciation.

• Corporate transformation, Banistmo divestment, and evolution into Grupo Cibest drove double-digit share price gains and improved market multiples.

Financial highlights

• Loan portfolio declined 8.3% year-over-year due to Banistmo reclassification; excluding this, growth was 2.1%, and 7.2% when also excluding FX effects.

• Deposits contracted 5.2% year-over-year, but grew 4.5% excluding Banistmo and 10.2% excluding FX effects.

• Net interest income decreased 5.3% year-over-year, but increased 1% excluding accounting impacts; NIM was 6.1%-6.5% excluding Banistmo.

• Net fee income rose 4.3% year-over-year, or 10.4% excluding accounting impacts, with strong sequential and annual growth.

• Cost-to-income/efficiency ratio was 49.4%-50.4%, in line with guidance.

Outlook and guidance

• 2026 guidance: loan growth 7%-8%, NIM 6.8%-7%, cost of risk 1.6%-1.8%, efficiency ratio ~49%, and ROE 18%-18.5%.

• Effective tax rate guidance set at 28%-30%, with extra provisions for potential new tax decrees.

• Guidance incorporates higher interest rates, inflation, and macroeconomic uncertainty; macro assumptions include GDP growth 3.2%, inflation 6.4%, and policy rate 11%.

• Nequi expected to grow users by 5%, loans by 50%, deposits by 10%, and total income by 40% in 2026.

• Forward-looking statements highlight risks from macroeconomic changes, exchange rate volatility, and competitive pressures.