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]

Core Insights - Grupo Cibest (CIB) is currently rated as a Strong Buy with a Zacks Rank of 1, while Federal Signal (FSS) holds a Zacks Rank of 3, indicating a Hold status [3] - CIB is experiencing positive earnings estimate revisions, suggesting an improving earnings outlook compared to FSS [3] Valuation Metrics - CIB has a forward P/E ratio of 7.68, significantly lower than FSS's forward P/E of 31.36, indicating that CIB may be undervalued [5] - The PEG ratio for CIB is 1.10, while FSS has a PEG ratio of 2.24, further suggesting that CIB offers better value considering its expected earnings growth [5] - CIB's P/B ratio stands at 2.58, compared to FSS's P/B of 6.02, reinforcing the notion that CIB is more attractively priced relative to its book value [6] - Based on these valuation metrics, CIB has received a Value grade of A, while FSS has a Value grade of D, indicating a stronger value proposition for CIB [6]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, particularly in the financial sector, to achieve exceptional returns. However, identifying such stocks can be challenging due to inherent volatility and risks associated with growth stocks [1]. Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics. Grupo Cibest (CIB) is currently highlighted as a recommended stock due to its favorable Growth Score and top Zacks Rank [2]. - Stocks with a Growth Score of A or B and a Zacks Rank of 1 (Strong Buy) or 2 (Buy) have been shown to consistently outperform the market [3]. Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive as it signals strong future prospects. Grupo Cibest has a historical EPS growth rate of 58.3%, with a projected EPS growth of 10.3% for the current year, surpassing the industry average of 9.6% [4][5]. Group 3: Cash Flow Growth - Cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding. Grupo Cibest's year-over-year cash flow growth stands at 6.6%, significantly higher than the industry average of -8.1%. 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][7]. Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with stock price movements. Grupo Cibest has seen upward revisions in current-year earnings estimates, with the Zacks Consensus Estimate increasing by 1.7% over the past month [8][9]. Group 5: Overall Assessment - Grupo Cibest has achieved a Zacks Rank of 2 and a Growth Score of A, indicating its potential as an outperformer and a solid choice for growth investors based on the discussed metrics [10][11].