Grupo Cibest (NYSE:CIB) reported second-quarter net income of COP 2.7 trillion, up 87% from the prior quarter, as wider margins, investment-portfolio gains, lower provisions and operating-efficiency measures supported results. Annualized return on equity reached 29%, while the company cited a historic quarterly ROE of 28.7%.
Chief Executive Officer Juan Carlos Mora Uribe said the results reflected the group’s transactional banking model, low-cost funding base, credit-risk capabilities and flexibility to allocate resources between lending and investments. He also pointed to the completed Banistmo divestment, improvements at BAM, growth at digital financial platform Nequi, and capital-management initiatives as contributors to value creation.
Margins and lending trends
Chief Strategy and Financial Officer Mauricio Botero Wolff said the gross loan portfolio was nearly flat sequentially amid uncertainty surrounding Colombia’s electoral process, but rose 5.7% year over year, or 9.6% excluding foreign-exchange effects. Mortgages increased 1.8% during the quarter and 12% from a year earlier, while consumer lending grew 0.5% sequentially and 7.4% annually, aided by vehicle loans, Nequi and credit cards.
Deposits declined 0.2% during the quarter but increased 7% year over year, or 12% excluding currency effects. Savings accounts were the principal driver of deposit growth. The consolidated cost of deposits rose from 4% to 4.4%, reflecting higher savings-account remuneration, though the company said sight deposits represented 57% of consolidated funding and remained less rate-sensitive than time deposits.
Net interest income rose 16.5% from the prior quarter. Lending NIM expanded to 8.3% from 7.8%, supported by higher asset yields in Colombia, while investment NIM increased to 6% from 1.8%. Botero said strong liquidity and modest loan growth allowed the group to take advantage of activity in Colombia’s fixed-income market, including carry-trade activity by international investors and trading opportunities in TES-related instruments.
Overall NIM rose 91 basis points sequentially to 7.9%. In response to an analyst question, Botero said the group expects full-year lending NIM of about 8% and investment NIM of about 3.5%. He added that investment-portfolio growth could reverse as loan demand recovers.
Credit quality, expenses and capital
Net provision expense totaled COP 1 trillion, down 17% from the first quarter, primarily due to recoveries from specific clients. Annualized cost of risk declined to 1.6%. Management said higher provisions in consumer, small- and medium-sized enterprise, and commercial lending were concentrated among specific borrowers rather than signaling broad-based credit deterioration.
Thirty-day and 90-day nonperforming loan ratios remained broadly stable, according to the company. Consumer credit cards and personal loans showed some pressure, as did mortgages, while commercial delinquency ratios improved slightly. Management identified potential risks from the recent earthquake in Colombia, a possible El Niño event, and the stronger Colombian peso’s impact on exporters.
Operating expenses fell 10% sequentially, largely because the first quarter included a COP 374 billion wealth tax. Expenses increased 1.9% year over year, supported by controlled labor costs, cloud-migration efficiencies and lower contact-center costs. The consolidated cost-to-income ratio reached 43% during the quarter.
Grupo Cibest said shareholders’ equity increased 4.8% from the prior quarter, driven mainly by earnings. Bancolombia’s standalone common equity Tier 1 ratio stood at 12.1%, and its total solvency ratio was 13.9% at June 30. The company said it expects double leverage to close the year at 105%, compared with an appetite of 120%, and expects Bancolombia’s standalone solvency ratio to reach 15.3% by year-end.
The group has repurchased more than 70 million shares for COP 967 billion over the past 12 months. It also plans to propose a COP 1.2 trillion extraordinary dividend tied to proceeds from the Banistmo sale, subject to shareholder approval.
Nequi and Avista expansion
Nequi is expected to begin operating as an independent financial entity within Grupo Cibest on Sept. 1, following authorization from Colombia’s Financial Superintendency. Management said customers’ access to Nequi products, app experience and service channels will not change.
Nequi’s monetized user base reached 18 million, with an activity ratio of 81.6%. Deposits totaled COP 7.6 trillion, up 12% sequentially, while its loan portfolio grew 14% to COP 2.2 trillion. Total income at Nequi reached COP 492 billion, up 16% from the prior quarter. Mora said the company does not expect further deterioration in Nequi’s credit performance and considers the current loan book profitable.
Grupo Cibest also completed its acquisition of 100% of Avista Colombia during the quarter. Mora said Avista adds technology, expertise and a team focused on payroll lending, a segment the group views as lower risk with cross-selling potential. Management said it sees an opportunity to improve profitability using Bancolombia’s funding advantages and potentially expand the platform into Central America.
Economic outlook and 2027 growth
Chief Economist Laura Clavijo reduced Grupo Cibest’s 2026 Colombian GDP growth forecast to 2.6% from 2.9%, citing high interest rates, persistent inflation and weak private investment. The company expects inflation to remain a challenge and projects the central bank’s policy rate could rise to 12.75% by year-end, or remain at 12% for longer if additional hikes are not approved.
For 2027, management expects loan growth near the upper end of its current 7% to 8% range, with mortgages and consumer lending potentially growing at double-digit rates and commercial lending around 8%. Botero said elevated interest rates and the longer implementation timeline for infrastructure and corporate investment projects could limit more rapid commercial-loan growth early next year.
About Grupo Cibest (NYSE:CIB)
Bancolombia SA (NYSE: CIB) is a leading financial institution in Colombia, offering a comprehensive suite of banking and financial services. As one of the largest universal banks in the country, the company provides retail and commercial banking, corporate and investment banking, treasury services, and wealth management solutions. Through its extensive branch network and digital platforms, Bancolombia serves individual clients, small and medium enterprises, and large corporations, focusing on convenience, innovation and customer experience.
In addition to traditional banking, Bancolombia’s product portfolio includes insurance, pension fund management, leasing, factoring, brokerage and asset management.
