Grupo Cibest S.a. · BVC:CIBEST
Grupo Cibest — Q1 2024 Earnings Presentation
28 slides from Grupo Cibest's earnings presentation, May 10, 2024
Slide 1: Earnings Results 1Q24
Earnings Results 1Q24 = Bancolombia a”
Slide 2: 1Q24 Overview
1Q24 Overview • Loan book up 2.5% QoQ and down -2.6% YoY • Deposits down -1.3% QoQ and -2.5% YoY Financial Highlights • NIM 7.1% • Net income COP 1.7 trillion, ROE 17.4% and ROTE 21.8% • Basel III CET1 Capital Ratio of 10.4% and Total Capital Ratio of 12.3% • Net provision charges amounted to 1.3 tr
Slide 3: Colombia’s Economic Outlook
Colombia’s Economic Outlook Economic Growth Inflation and Interest Rates Fiscal and External Imbalances Our GDP growth forecast for 2024 was Inflation continued its downward trend Colombia managed to narrow its macro revised downward from 0.9% to 0.6%, on (7.36% as of March), thanks to lowering imba
Slide 4: Value Driving Pillars
Value Driving Pillars Payment platform that supports ONLINE the digital evolution of Multichannel approach (digital BANKING merchants by simplifying its and physical sales) Pillar 1 cash management Integrated & Client- centric solutions approach PHYSICAL CHANNELS Complementary to Bank and Poised for
Slide 5: Value Driving Pillars
Value Driving Pillars NIM ´s performance key factors - Colombia Assets Liabilities* 3% Non Rate-Sensitive 10% 7% TD > 1 year Fixed Rate 3% 4% 11% 9% 32% 1% Rate-Sensitive Saving Accouts Fixed Rate 12% 33% 41% TD < 1 year 21% IBR 25% 2021 Mar-24 2021 Mar-24 TD > 1 year IBR DTF 54% TD > 1 year CPI 24%
Slide 6: Value Driving Pillars
Value Driving Pillars Technology • Structural and comprehensive Regulatory Fixed Expense Assets Management • Short- and medium-term approach Recurrent Expenses • Top-down commitment Control Pillar 4 Strategy • Centralized governance, oversight and control mechanisms Culture of efficiency and product
Slide 7: A regional operation that provides diversification
A regional operation that provides diversification Loan Share by Geography 120.0% NIM 100.0% 7.7% 7.2% 7.0% 6.7% 6.8% 6.9% 6.4% 6.2% 6.1% 6.2% 8.3% 8.3% 8.1% 80.0% 12.1% 7.9% 14.1% 13.0% 12.8% 12.2% 7.5% 60.0% 4.9% 4.9% 40.0% 67.0% 69.8% 70.6% 72.2% 70.9% 4.6% 4.6% 4.6% 20.0% 0.0% 1Q23 2Q23 3Q23 4Q2
Slide 8: A well-balanced loan book
A well-balanced loan book Commercial Consumer * Mortgage Corporate SME Financial leases Credit cards Auto loans Payroll loans VIS * Non-VIS Average $36.6 Microloans Average $167.3 Personal loans Average $56.2 170.9 167.6 165.6 163.1 169.4 64.0 59.1 54.6 37.3 36.1 36.3 37.0 57.2 56.0 53.9 36.2 1.3 16
Slide 9: Access to broad sources of funding providing a cost advantage
Access to broad sources of funding providing a cost advantage, Time Deposits, Saving Accounts & Checking Accounts Funding Mix* 290 279 277 279 274 111.0 109.0 106.6 7% 6% 6% 6% 5% 105.9 101.7 104.2 6% 6% 5% 5% 97.5 98.4 98.7 100.2 7% 2% 2% 2% 2% 2% 34% 35% 37% 35% 36% 37.9 34.0 33.5 35.0 33.9 38% 38
Slide 10: Well positioned for the interest rate cycle
Well positioned for the interest rate cycle Net Interest Income Time Deposits Maturity 5,358 4,933 5,235 5,159 4,851 Net lnterest Income 1Q24/1Q23 -3.7% 33% 5,178 4,846 4,819 1Q24/4Q23 -1.5% 5,145 4,773 67% 180 78 389 340 -212 1Q23 2Q23 3Q23 4Q23 1Q24 Investment interest margin Lending Net Income >
Slide 11: Our business model fosters growth on other income sources
Our business model fosters growth on other income sources Net Fee Income evolution 2,500 25.0% 19.6% 18.4% 19.1% 18.0% 20.0% 2,000 15.0% 1,500 10.0% Net Fee Income 5.0% 1,000 1,767 1,730 1,899 1,752 1Q24/1Q23 0.0% 1,684 0.0% 1Q24/4Q23 -2.4% 500 1,002 998 958 1,026 1,001 -5.0% 0 -10.0% 1Q23 2Q23 3Q23
Slide 12: Provisions supporting allowances and coverage
Provisions supporting allowances and coverage Asset Quality Evolution Provisions Breakdown 3.1% 3.1% 2.5% 2.7% 2.0% 2,350 2,045 2,082 1,724 0.0% 21 182 5 1,610 168 233 218 1Q23 2Q23 3Q23 4Q23 1Q24 Net Provisions Charges 210 82 1,315 1,850 169 241 56 -5.0% 1Q24/1Q23 -35.7% 1,350 275 Initial PDL 8,490
Slide 13: Whilst new vintages reflect a lower deterioration
Whilst new vintages reflect a lower deterioration Consumer Deterioration Evolution*- Colombia 90 days – PDL Consumer Loans - Colombia 1,200 12.6% 14.0% As % of Total Loans 12.0% 11.7% 9.4% 2.5% 2.7% 4.0% 19.5% in Colombia 1,000 10.7% 12.0% 22.0% 9.4% 20.0% 20.0% 800 10.0% 17.0% 16.3% 600 8.0% 15.0%
Slide 14: Robust operating expenses control
Robust operating expenses control Operating expenses Main Opex contributors 3,171 3,242 3,457 3,179 Total Operating Expenses 12.4% 3,072 Other Taxes 1Q24/1Q23 3.5% 15.1% 1,354 1,334 1,339 1,335 1Q24/4Q23 -8.0% 1,323 Administrative Expenses Other Administrative and General 3.2% 1Q24/1Q23 5.4% -18.4%
Slide 15: Sound earnings generation
Sound earnings generation Net Income 2,000 1,780 1,732 1,717 1,663 1,629 1,643 1,460 1,492 1,448 1,500 1,000 500 0 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 COP Billion ROA, ROE & ROTE 10% 40% 39% 38% 37% 9% 36% 35% 34% 33% 8% 28.8% 32% 27.3% 31% 30% 28.5% 7% 26.2% 29% 28% 23.8% 27% 22.6% 26% 22.
Slide 16: Strong capital position
Strong capital position Shareholders´ Equity Core Equity Tier I and Total Capital Evolution 13.4% 12.5% 12.5% 12.3% 12.0% 11.4% 38.090 10.4% 10.4% 10.4% 37.533 36.918 9.7% 36.543 36.486 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 COP Billion Tier I Total Capital Adequacy Core Equity Tier I Var
Slide 17: Sustainability
Sustainability Businesses with purpose Sustainability framework Environmental Economic Social Climate Change Dow Jones Index Financial Education COP 500 Tn – *Our goal for 2030 2020 COP 24.8 Tn Bancolombia is the La Casa de la Plata Launch. 2021 company with the highest ESG responsibility COP 36.9 T
Slide 18: Our 2024 Guidance
Our 2024 Guidance Previous New Around 3% in COP Around 4.1% in COP 2024 Macroeconomic Loan Growth and 5.1% in USD and 8.5% in USD assumptions NIM Around 6.8% 4Q23 1Q24 GDP Growth 0.9% 0.6% CoR 2.6% 2.4%-2.6% Inflation Rate 5.9% 5.7% Unemployment Rate 11.8% 10.7% Efficiency Around 49% Around 50% Cent
Slide 19: Investment Thesis
Investment Thesis We deliver integrated solutions under a client centric Our continuous investment in leading edge technology approach that nourishes preference & loyalty on a rapid and innovative operational capabilities support our growing client base. business evolution and unlocks profitability.
Slide 20: Earnings Results 1Q24
Earnings Results 1Q24 = Bancolombia a”
Slide 21: Colombia and Central America Overview
Colombia and Central America Overview 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 ▪ NIM 8.27% 8.28% 8.12% ▪ NIM 3.87% 3.63% 3.53% ▪ NII 3,994 4,099 4,057 ▪ NII 0,448 0,348 0,331 ▪ Net Fees Growth -1.08% 4.77% 0.15% ▪ Net Fees Growth -3.14% 15.49% -15.40% ▪ ROAE 17.56% 15.23% 18.46% ▪ ROAE 12.69% 5.95% 9.47% ▪ Eff
Slide 22: Consolidating a leading regional banking platform
Consolidating a leading regional banking platform Market Share Colombia Market Share Panamá Bancolombia 26.9% 13.5% 25.5% Banco General 14.2% Davivienda 15.6% 9.4% 14.5% Banistmo 7.8% Banco de Bogotá 12.5% 7.6% 12.2% Global Bank 5.8% BBVA 11.3% 6.1% 12.2% BAC 6.7% Banco de Occidente 7.0% Banesco 4.3
Slide 23: Acquiring-Colombia
Acquiring-Colombia Credit Cards Debit Cards 40.9 9.1 8.9 370 90 8.1 9 35.4 35.5 40.0 80 360 37.0 8 70 79 350 358 34.0 60 7 31.0 72 50 6 340 350 28.0 40 54 25.0 5 330 30 22.0 2.9 2.8 4 20 2.7 320 19.0 10 3 321 16.0 310 0 2 14.5 14.9 15.0 13.0 300 10.0 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 Credit Card Net Fee
Slide 24: Assets Breakdown
Assets Breakdown Total Assets Total Gross Loans Financial assets 267 TN 254 TN 260 TN investment 8% 13.9% 14.3% 14.2% Other 1Q24/1Q23 -3.5% 22.1% 21.5% 20.8% 14% 1Q24/4Q23 -1.7% 1Q24/1Q23 -2.6% 1Q24/4Q23 2.5% 63.4% 63.8% 64.6% Loans 77% 1Q23 4Q23 1Q24 Commercial Consumer Mortgage Investment Portfoli
Slide 25: Bancolombia a la Mano
Bancolombia a la Mano Loans Pre-Approved Loans A LA MANO 81,264 245,606 128,867 103,592 33,812 33,139 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 Loans (COP Billion) Quaterly Disbursements COP Million COP Million Transactions 180.0 166.27 160.0 Users NPS 140.0 133.6 1Q24: +6 Million 1Q24: 59.8% 120.0 108.8 100.0
Slide 26: NEQUI
NEQUI Deposits Loans Nequi Cards 3.0 2.9 160,000 148,610 2.0 2.6 142,067 140,000 132,294 265 1.7 1.8 2.5 COP 157k/User 1.5 1.6 120,000 215 2.0 165 1.4 1.6 100,000 151 COP 132k/User 202 165 1.0 1.2 1.5 80,000 1.0 115 60,000 0.8 1.0 COP 102k/User 65 0.6 40,000 0.5 66 69 0.4 15 20,000 0.2 - 0 9 -35 - 1
Slide 27: Disclaimer
Disclaimer This report corresponds to the interim unaudited consolidated financial statements of BANCOLOMBIA S.A. and its subsidiaries (“BANCOLOMBIA” or “The Bank”) which Bancolombia controls, amongst others, by owning directly or indirectly, more than 50% of the voting capital stock. These financia
Slide 28: Earnings Results 1Q24
Earnings Results 1Q24 = Bancolombia a”