Grupo Cibest S.A.

Grupo Cibest reported net income of COP 2.7 trillion in the quarter, with annualized ROE of 28.7% (also cited as 29%). Mauricio Botero said net interest income increased 16.5% quarter over quarter, lending NIM expanded from 7.8% to 8.3%, investment NIM rose from 1.8% to 6%, total NIM expanded from 7% to 7.9%, net fee income rose 9.8% quarter over quarter and 17.7% year over year, and net provision expense was COP 1 trillion, down 17% quarter over quarter; annualized cost of risk was 1.6%. Operating expenses declined 10% quarter over quarter and rose 1.9% year over year, and the consolidated cost-to-income ratio was 43%. On balance sheet items, gross loan portfolio growth was 5.7% year over year (9.6% net of FX), deposits rose 7% year over year (12% net of FX), and Bancolombia stand-alone CET1 was 12.1% with total solvency of 13.9% as of June. For 2026, management raised NIM guidance to 7.4%–7.6%, kept loan growth at 7%–8% and cost of risk at 1.6%–1.8%, lowered the efficiency ratio outlook to around 48%, and lifted ROE guidance to 21%–22%.

Juan Uribe framed the quarter as evidence that the strategy is working, pointing to transactional activity, low-cost funding, data-driven risk management, and flexibility between lending and investments. He highlighted the Banistmo divestment, PAM’s turnaround, Nequi’s growing contribution, capital instrument usage, and the planned extraordinary dividend as evidence of value creation. On Avista, he said the acquisition strengthens payroll lending and could be scaled through Bancolombia’s funding advantage and potentially across Central America. His tone was confident and constructive, while acknowledging macro and credit risks from El Niño, the earthquake, and a stronger peso.

Mauricio Botero Wolff emphasized that the balance sheet benefited from moderate loan growth and strong liquidity, which enabled the group to capture higher investment yields and carry-trade opportunities. He said deposits rose 7% year over year, the cost of deposits moved from 4% to 4.4%, and Bancolombia’s stand-alone cost of deposits rose only 64 basis points over the last two quarters despite two policy-rate hikes totaling 200 basis points. He also said the group repurchased more than 7 million shares for COP 967 billion over the last 12 months, plans a COP 1.2 trillion extraordinary dividend, and expects double leverage to be 105 by year-end versus 94 currently, with an appetite of 120. He added that Bancolombia’s year-end solvency ratio is expected at 15.3%, above its appetite of around 12.5%.

Analysts pressed management on whether the second half can match or exceed the strong first half, and management said seasonality usually helps, but asset quality, El Niño, the earthquake, and peso strength could pressure results; they still felt comfortable with the 21%–22% ROE guide. On NIM sensitivity, management said higher rates should continue to support lending margins, with a 100 bp repo move now having about a 25 bp NIM effect after the Banistmo divestment, and derivatives would be considered later when rates inflect. Questions on Nequi’s weaker NPLs and cost of risk were answered with reassurance that the loan book is still being learned and current levels remain profitable, with no expectation of additional deterioration. Analysts also asked about taxes, the new government, the interest-rate cap, and capital allocation; management said the new administration’s focus on fiscal discipline and a more business-friendly stance looks constructive, while capital will be allocated through ordinary dividends, buybacks when market conditions allow, and strategic investments tied to the business model.