Bancolombia S.A (CIB) Q1 2026 Earnings Call Transcript
Neutral Banks - Regional 19.34B Colombia
Next Earnings
2026-05-04
Grupo Cibest SA operates as an investment holding company. The company is headquartered in Medellin, Columbia.
Grupo Cibest delivered solid 2025 results with a one-off Banistmo impairment, breakeven in key digital arms, a generous dividend, and 2026 guidance emphasizing mid-single-digit loan growth, stable NIM, modest cost of risk, and ROE around 18% despite tax and deconsolidation uncertainties.
⭐ Key Highlights
Banistmo divestment and accounting impact
Sale of Banistmo triggered a noncash impairment and assets held for sale reclassification; pro forma 2025 net income would be COP 7.3 trillion and ROE 17.2%, excluding the impairment.
Digital businesses reach breakeven
Nequi, Wompi and Wenia achieved breakeven in Q4 2025, marking a key milestone for digital platforms and long-term group profitability.
Strong dividend and capital return
Proposed dividend of COP 4.3 trillion (COP 4,512 per share) with a 14.6% annual dividend growth, supported by the new corporate structure.
4Q25 and 2025 earnings profile
2025 net income of COP 3.8 trillion, ROE 9.1% (17.2% ex-banistmo), with robust operating results and improved asset quality despite one-off effects.
Capital structure and buyback
Share buyback program: ~32% of authorized amount executed, average 37% appreciation across share classes; program to continue with a multi-year plan contingent on conditions.
2026 guidance and key risks
Guidance: loan growth 7–8%, NIM 6.8–7.0%, cost of risk 1.6–1.8%, ROE 18–18.5%; taxes and Banistmo deconsolidation introduce meaningful risk and volatility.
✔Positive Signals
- Breakeven of Nequi, Wompi and Wenia in 2025
- Proposed dividend of COP 4.3 trillion and 14.6% annual growth
- Strong pro forma ROE of 17.2% excluding Banistmo impairment
- Active share buyback with meaningful execution and returns
- FTSE Large Cap inclusion and improving valuation signals
✖Negative Signals
- One-off impairment from Banistmo sale weighing on reported results
- Tax headwinds and potential changes creating uncertainty for 2026 guidance
- Banistmo deconsolidation adds complexity and macro risk
- NIM headwinds and higher funding costs in a higher-rate environment
- Moderate 2025 top-line resilience with ROE below pre-impairment level
📊Financial Results
- 2025 net income COP 3.8 trillion; pro forma net income COP 7.3 trillion excluding Banistmo impairment
- ROE 9.1% reported; 17.2% pro forma excluding impairment
- Total deposits contracted 5.2% (FX-adjusted +10.2%); savings accounts +16.1% (net of effects)
- Net interest income down 5.3% y/y; NIM 6.5% ex-impairment, reflecting lower rates
- Total cost-to-income ratio 49.8% in line with guidance
🔮Future Guidance
- 2026 loan growth guidance of 7%–8%
- NIM guidance of 6.8%–7.0%
- Cost of risk guidance of 1.6%–1.8%
- ROE target of 18%–18.5%
- Taxes uncertain: guidance assumes ~28–30% effective tax rate depending on new decrees; no inclusion of equity tax yet
💡Interesting Insights
- Strategic shift to a Latin American fintech-led model with capital flexibility and potential future intra-holding instrument flows
- Nequi expected to be standalone by 3Q 2026, enabling clearer standalone metrics and profitability trajectory
Detailed Analysis
AI-generated summary of Bancolombia S.A earnings call transcript.
In 2025, Grupo Cibest benefited from a transformation that improved capital allocation and shareholder returns, culminating in a COP 4.3 trillion proposed dividend and a share buyback, while reporting a COP 3.8 trillion net income and 9.1% ROE including a one-off impairment from the Banistmo sale. Excluding the impairment, earnings were COP 7.3 trillion with a pro forma ROE of 17.2%. Digital platforms Nequi, Wompi and Wenia reached breakeven in Q4, signaling success in the group’s digital strategy. The macro backdrop remains challenging: Colombia posted 2.6% GDP growth in 2025 with inflation near 5.1% and a higher rate environment, while the upcoming 2026 outlook contends with tax debates and the Banistmo deconsolidation. The group maintains a buyback program, aims for ROE around 17–18% long-term, and signals 7–8% loan growth, 6.8–7.0% NIM and 1.6–1.8% cost of risk, with capital allocation continuing toward Nequi, Wompi, Wenia and IT investments, balancing growth with shareholder value.
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