Financial Data and Key Metrics Changes - Net income grew nearly 20% quarter-over-quarter and 43% year-over-year, driven by resilient margins and a sharp decline in provision charges [4][28] - Return on equity (ROE) expanded by 288 basis points during the period, reaching 20.4% [5][28] - The standalone double leverage ratio was 106%, indicating strong creditworthiness and room for further leverage [5] Business Line Data and Key Metrics Changes - Nominal loan growth was flat during the quarter, but adjusted for effects, loan growth would have reached 1.2% quarter-over-quarter and 5.9% annually [4][14] - Consumer loans were the main driver of growth, with credit card usage and Nequi's performance contributing significantly [14][22] - Mortgages registered strong growth, with an annual increase of 11% [14] Market Data and Key Metrics Changes - The Colombian economy sustained a recovery with an expected annual growth rate of 2.4% for Q3, consistent with a full-year GDP forecast of 2.6% [10] - Central American operations showed resilience, with El Salvador expected to grow 2.2% and Guatemala projected to expand 3.6% [12] Company Strategy and Development Direction - The company is well-positioned to deliver sustained value creation for shareholders through a new corporate structure under a holding company [6] - The share buyback program is progressing well, enhancing ROE performance and boosting key valuation metrics [7][8] - The launch of Nequi is seen as a significant step towards sustained profitability, with expectations of breakeven by Q1 of next year [5][22] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of a robust digital offer combined with physical presence to manage funding costs effectively [36] - The company anticipates loan growth of approximately 3.5% for 2025, with a net interest margin estimated at 6.5% [30][31] - The cost of risk is expected to be in the range of 1.5-1.7%, indicating continued improvements in asset quality [31] Other Important Information - The company reported a significant reduction in net provisions, amounting to COP 800 billion, a 24% quarterly drop [24][26] - Operating expenses decreased by 2.4% during the quarter, driven by efficiency strategies [27] Q&A Session Summary Question: Sustainability of funding costs and potential upward revisions to ROE - Management emphasized a structural advantage in managing funding costs through a diverse deposit base and a robust digital offer, with ROE guidance for 2025 around 17% [35][37] Question: Update on presidential elections and efficiency guidance - Management noted that clarity on presidential candidates will improve by January, with efficiency guidance for 2026 set around 50% [42][46] Question: Loan growth breakdown and sustainable levels for new PDL - Loan growth for 2026 is guided at 7%, with consumer loans expected to grow around 10% [54][58] Question: Model recalibration and tax rates - The model recalibration reflects improved credit risk across all countries, with an effective tax rate for Grupo Cibest around 28% [64][66] Question: Buyback program and Nequi's profitability roadmap - Management expressed satisfaction with the buyback program's progress and highlighted Nequi's strong performance, expecting profitability in 2026 [78][81]

Financial Data and Key Metrics Changes - Net income grew nearly 20% quarter-over-quarter and 43% year-over-year, driven by resilient margins and a sharp decline in provision charges [4][28] - ROE expanded by 288 basis points during the period, reaching 20.4% [5][28] - Grupo Cibest's standalone double leverage ratio was 106%, indicating strong creditworthiness and room for further leverage [5] Business Line Data and Key Metrics Changes - Nominal loan growth was flat during the quarter, but adjusted for effects, loan growth would have reached 1.2% quarter-over-quarter [4][14] - Consumer loans were the main driver of growth, with a notable increase in credit card usage and strong performance from Nequi [14][22] - Mortgages registered an annual growth of 11% [14] Market Data and Key Metrics Changes - The Colombian economy sustained its recovery through the third quarter, with economic activity likely expanding at an annual rate of 2.4% [10] - Central American operations showed notable resilience, with El Salvador expected to grow 2.2% and Guatemala projected to expand 3.6% [12] Company Strategy and Development Direction - The company is well-positioned to deliver sustained value creation for shareholders through a new corporate structure under the holding company [6] - The share buyback program launched in mid-July is enhancing ROE performance and boosting key valuation metrics [7][8] - The launch of Breve was completed smoothly, with Bancolombia and Nequi accounting for 52% of all digital keys registered [9] Management Comments on Operating Environment and Future Outlook - Management anticipates continued improvements in asset quality and a cost of risk in the range of 1.5%-1.7% for 2025 [31] - The company expects loan growth of approximately 3.5% for 2025, with a net interest margin estimated at 6.5% [30][31] - The management is confident that Nequi will reach profitability by 2026, following its separation from Bancolombia [81] Other Important Information - Net provisions amounted to COP 800 billion, a 24% quarterly drop and close to 48% annual contraction [24][25] - Operating expenses decreased by 2.4% during the quarter, driven by efficiency strategies [27] Q&A Session Summary Question: Sustainability of funding costs and potential upward revisions to ROE - Management emphasized a structural advantage in managing funding costs through a robust digital offer and physical presence [36] - ROE guidance for 2025 is around 17%, with potential for improvement [37] Question: Update on presidential elections and efficiency guidance - Management noted that clarity on candidates will emerge closer to the elections, with January and March being key months for assessment [44] - Efficiency guidance for 2026 is around 50%, with ongoing efforts to optimize expenses [46][48] Question: Loan growth breakdown and sustainable levels for new PDL - Loan growth for 2026 is guided at 7%, with consumer loans expected to grow around 10% [54] - Management indicated a cost of risk range of 1.6%-1.8% for 2026, reflecting improved credit risk behavior [55] Question: Model recalibration and tax rates - The model recalibration applies to all banks within Grupo Cibest, reflecting improved credit risk across countries [64] - The effective tax rate for Grupo Cibest is around 28%, varying by country [66] Question: Buyback program and Nequi's profitability roadmap - Management is satisfied with the buyback program's progress and remains flexible regarding future capital allocation [80] - Nequi is expected to continue its growth trajectory, with profitability anticipated in 2026 [81]

Financial Data and Key Metrics Changes - Net income grew nearly 20% quarter-over-quarter and 43% year-over-year, driven by resilient margins and a sharp decline in provision charges [4][28] - Return on equity (ROE) expanded by 288 basis points during the period, reaching 20.4% [5][28] - The standalone double leverage ratio was 106%, indicating strong creditworthiness and room for further leverage [5] Business Line Data and Key Metrics Changes - Nominal loan growth was flat during the quarter, but adjusted for effects, loan growth would have reached 1.2% quarter-over-quarter and 5.9% annually [4][12] - Consumer loans were the main driver of growth, with credit card usage stimulated by marketing campaigns [12][22] - Mortgages registered strong growth, with an annual increase of 11% [12] Market Data and Key Metrics Changes - The Colombian economy sustained a recovery with an expected annual growth rate of 2.4% for the third quarter [9] - Economic activity in Central America showed resilience, with El Salvador expected to grow 2.2% and Guatemala projected to expand 3.6% [11] Company Strategy and Development Direction - The company is well-positioned to deliver sustained value creation for shareholders, supported by a new corporate structure under a holding company [5][30] - The share buyback program is progressing well, enhancing ROE performance and boosting key valuation metrics [6][28] - The launch of Nequi is seen as a significant step towards sustained profitability, with expectations of breakeven by Q1 of next year [5][56] Management's Comments on Operating Environment and Future Outlook - Management highlighted the effectiveness of the business model and operational capabilities in navigating a competitive market [4] - The company anticipates continued improvements in asset quality and a stable cost of risk, with projections for loan growth revised to approximately 3.5% for 2025 [30][31] - The cost of risk is expected to be in the range of 1.5-1.7%, indicating ongoing improvements [31] Other Important Information - The company processed approximately 70 million transactions amounting to COP 7.2 trillion in flows within the new digital key system [8] - The asset quality continued to improve, with a significant reduction in past due loans and a 24% quarterly drop in net provisions [24][25] Q&A Session Summary Question: Sustainability of funding costs and potential upward revisions to ROE - Management emphasized a structural advantage in funding costs due to a robust digital offer and physical presence, with guidance for ROE around 17% for 2025 [33][34] Question: Update on presidential elections and efficiency guidance - Management noted that clarity on candidates will improve by January, with efficiency guidance for 2026 set around 50% [37][40] Question: Loan growth breakdown and sustainable levels for new past due loans - Loan growth for 2026 is projected at 7%, with consumer loans expected to grow around 10% [42][44] Question: Model recalibration and tax rates - The model recalibration reflects improved credit risk across all countries, with an effective tax rate for Grupo Bancolombia around 28% [48][49] Question: Buyback program and Nequi's profitability roadmap - The buyback program is progressing well, and Nequi is expected to achieve profitability in 2026, with a strong performance in its loan book [56][58]

Financial Results 3Q25 1. 3Q25 highlights Strong net income and return on equity underpinned by resilient margins and ongoing improvements in asset quality. 3. In September, Nequi reported positive net income, marking a key milestone on its path toward sustained profitability. . Consumer loans gaining traction, providing room for 2 higher yields 4. Solid progress on share buybacks continues to enhance ROE and boost key valuation metrics. | | Loans | Deposits | NIM | | --- | --- | --- | --- | | | 0.1% Q/Q | ...

Group 1: Fox Corporation (FOXA) - The company has a Zacks Rank of 1, indicating strong performance potential [1] - The Zacks Consensus Estimate for its current year earnings has increased by 5.6% over the last 60 days [1] - Fox Corporation has a PEG ratio of 1.46, which is lower than the industry average of 1.93, and possesses a Growth Score of B [1] Group 2: Grupo Cibest S.A. (CIB) - The company also holds a Zacks Rank of 1, suggesting favorable investment conditions [2] - The Zacks Consensus Estimate for its current year earnings has risen by 3.3% over the last 60 days [2] - Grupo Cibest has a PEG ratio of 1.14, significantly lower than the industry average of 2.66, and has a Growth Score of B [2] Group 3: Futu Holdings Limited (FUTU) - This company carries a Zacks Rank of 1, reflecting strong growth potential [3] - The Zacks Consensus Estimate for its current year earnings has increased by 6.2% over the last 60 days [3] - Futu Holdings has a PEG ratio of 0.64, which is lower than the industry average of 0.98, and possesses a Growth Score of B [3]

Core Insights - Grupo Cibest S.A. (CIB) is expected to report third-quarter 2025 results on November 5, with anticipated year-over-year earnings growth driven by increased net interest income and lower credit impairment charges [1][2][8] Earnings Performance - CIB has a strong earnings surprise history, having surpassed the Zacks Consensus Estimate in the last four quarters with an average beat of 6.5% [2] - The Zacks Consensus Estimate for CIB's third-quarter earnings is $1.84 per share, reflecting a 23.5% increase from the same quarter last year [2][8] Lending Environment - The lending environment in Colombia remains stable, with higher interest rates likely contributing to net interest income, although net interest margins may face pressure due to elevated funding costs [3] Earnings Prediction Model - The quantitative model indicates a high probability of CIB beating the Zacks Consensus Estimate, supported by a positive Earnings ESP of +4.89% and a Zacks Rank of 3 (Hold) or better [4] Zacks Rank - Currently, CIB holds a Zacks Rank of 1 (Strong Buy), indicating strong market confidence in the stock [5]

Group 1: Universal Health Services, Inc. (UHS) - The company operates hospitals and behavioral health care facilities and holds a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 3.8% over the last 60 days [1] - Universal Health has a PEG ratio of 0.80, which is lower than the industry average of 0.95, and possesses a Growth Score of B [1] Group 2: Grupo Cibest S.A. (CIB) - The company provides banking services and products and also carries a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 3.3% over the last 60 days [2] - Grupo Cibest has a PEG ratio of 1.14, significantly lower than the industry average of 2.70, and possesses a Growth Score of B [2] Group 3: Futu Holdings Limited (FUTU) - The company operates as an online brokerage and wealth management platform and holds a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 6.2% over the last 60 days [3] - Futu has a PEG ratio of 0.71, which is lower than the industry average of 1.06, and possesses a Growth Score of B [3]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those that can fulfill their potential is challenging [1] Group 1: Company Overview - Grupo Cibest (CIB) is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 58.3%, with projected EPS growth of 15.4% this year, surpassing the industry average of 12% [4] Group 2: Financial Metrics - Cash flow growth for Grupo Cibest is currently at 6.6%, significantly higher than the industry average of -8.1% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 8.2%, compared to the industry average of 4.6% [6] Group 3: Earnings Estimates - There is a positive trend in earnings estimate revisions for Grupo Cibest, with the current-year earnings estimates increasing by 1.7% over the past month [7] - The combination of upward earnings estimate revisions and a Growth Score of B positions Grupo Cibest favorably for outperformance [9]

Core Insights - Grupo Cibest (CIB) shares have increased by 10.3% over the past month and have gained 82.2% since the beginning of the year, outperforming the Zacks Conglomerates sector and the Zacks Diversified Operations industry, both of which returned 1.3% [1] Financial Performance - Grupo Cibest has consistently exceeded earnings expectations, reporting an EPS of $1.79 against a consensus estimate of $1.66 in its last earnings report on August 7, 2025 [2] - For the current fiscal year, the company is projected to achieve earnings of $7.27 per share on revenues of $6.87 billion, reflecting a 15.4% increase in EPS and a 3.91% increase in revenues [3] - The next fiscal year forecasts an EPS of $7.42 and revenues of $7.27 billion, indicating year-over-year changes of 2.06% and 5.91%, respectively [3] Valuation Metrics - Grupo Cibest has a Value Score of A, with Growth and Momentum Scores of B and C, respectively, resulting in a combined VGM Score of A [6] - The stock trades at 7.9 times the current fiscal year EPS estimates, significantly lower than the peer industry average of 19.1 times [7] - On a trailing cash flow basis, the stock also trades at 7.9 times compared to the peer group's average of 11.5 times, and it has a PEG ratio of 1.13, positioning it favorably for value investors [7] Zacks Rank - Grupo Cibest holds a Zacks Rank of 1 (Strong Buy), supported by a positive earnings estimate revision trend [8] - The stock meets the criteria for selection, as it carries a Zacks Rank of 1 or 2 and Style Scores of A or B, suggesting potential for further gains [9]

Group 1: Lam Research (LRCX) - Lam Research supplies wafer fabrication equipment and services to the semiconductor industry [1] - The company has a Zacks Rank 1 (Strong Buy) and a Growth Score of A [1] - The Zacks Consensus Estimate for its current year earnings has increased by 6.3% over the last 60 days [1] - Lam Research has a PEG ratio of 1.64 compared to 3.73 for the industry [1] Group 2: Fox (FOX) - Fox produces and distributes news, sports, and entertainment content [2] - The company holds a Zacks Rank 1 and a Growth Score of B [2] - The Zacks Consensus Estimate for its current year earnings has increased by 3% over the last 60 days [2] - Fox has a PEG ratio of 1.31 compared to 2.37 for the industry [2] Group 3: Grupo Cibest S.A. - Sponsored ADR (CIB) - Grupo Cibest provides a range of financial products and services to various customer bases throughout Colombia, Latin America, and the Caribbean [3] - The company has a Zacks Rank 1 and a Growth Score of B [3][4] - The Zacks Consensus Estimate for its current year earnings has increased by 3.3% over the last 60 days [3] - Grupo Cibest has a PEG ratio of 1.12 compared to 2.85 for the industry [4]