Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of buying high and hoping to sell even higher [1] - The Zacks Momentum Style Score helps investors identify stocks with strong momentum by focusing on price changes and earnings estimate revisions [2][3] Group 2: Bancolombia (CIB) Performance - Bancolombia currently holds a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy) [4][12] - Over the past week, CIB shares increased by 0.05%, while the Zacks Banks - Foreign industry declined by 2.3% [6] - In the last quarter, CIB shares rose by 13.24%, and over the past year, they increased by 49.03%, outperforming the S&P 500's gains of 13.18% and 21.49% respectively [7] Group 3: Trading Volume and Earnings Outlook - CIB's average 20-day trading volume is 308,461 shares, indicating a bullish sign if the stock price rises with above-average volume [8] - In the past two months, two earnings estimates for CIB moved higher, increasing the consensus estimate from $6.30 to $6.60 [10]

Group 1: BanColombia (CIB) - BanColombia is Colombia's largest bank by assets and has the largest market share in deposit products and loans [1] - The Zacks Consensus Estimate for BanColombia's current year earnings has increased by 1.9% over the last 60 days [1] - BanColombia has a dividend yield of 12.2%, significantly higher than the industry average of 3.3% [1] Group 2: Tsakos Energy Navigation Ltd (TEN) - Tsakos Energy Navigation is a leading provider of international seaborne crude oil and petroleum product transportation services [2] - The Zacks Consensus Estimate for Tsakos Energy Navigation's current year earnings has increased by 86.2% over the last 60 days [2] - Tsakos Energy Navigation has a dividend yield of 5.8%, compared to the industry average of 2.1% [2] Group 3: National Grid Transco (NGG) - National Grid Transco operates in the international energy delivery business, focusing on regulated electricity and gas industries [3] - The Zacks Consensus Estimate for National Grid Transco's current year earnings has increased by 6.3% over the last 60 days [3] - National Grid Transco has a dividend yield of 5.7%, which is above the industry average of 3.3% [3]

Financial Data and Key Metrics Changes - The return on equity (ROE) increased to 17.5%, primarily due to strong net income from improved net interest margin and reduced provision expenses [11][35] - Net interest margin rebounded to 6.6%, driven by growth in both loans and investments [12][24] - Cost of risk was reported at 1.6%, with declining nonperforming loans ratios indicating enhanced asset quality [12][31] - Net income increased by 3% quarter over quarter and 24% year over year [35] Business Line Data and Key Metrics Changes - The loan portfolio represented 75% of total assets, showing a 4.4% growth over the year despite being almost flat during the quarter [19] - Consumer loans regained momentum, primarily driven by operations in Colombia, while mortgages were the fastest-growing segment [20] - Deposits grew by 2.4% in the quarter and 9.6% over the year, outpacing loan growth [22] - NEKI, the digital bank, reported loans totaling COP 1,100,000,000,000, reflecting a substantial 4.7-fold increase over the previous year [12][37] Market Data and Key Metrics Changes - Colombia remains the core market with Bancolombia leading the financial sector, holding a market share of 28% in loans and 26% in deposits [7] - Central American operations provide valuable diversification, with Banco Agricola leading in El Salvador and Banitzmo ranking second in Panama [8] Company Strategy and Development Direction - The formation of Grupo Civest aims to optimize capital allocation, increase corporate flexibility, and boost value creation [5][6] - The company focuses on expanding complementary businesses supported by customer insights and data access [6] - The strategy includes a share repurchase program to enhance shareholder value [5] Management's Comments on Operating Environment and Future Outlook - The Colombian economy is gaining momentum, with GDP growth forecasted at 2.6% for 2025 and 3% for 2026 [14] - Inflation is expected to remain above 5% by year-end, with the Central Bank maintaining a cautious stance on interest rates [15] - The company anticipates continued pressure on net interest margins but expects to manage this through a better loan mix and operational efficiencies [54] Other Important Information - The company aims to disburse COP 716,000,000,000 by 2030 to support sustainable communities and enhance productive capacities [37] - The Tier one ratio for Bancolombia standalone closed at 11%, reflecting organic capital generation [36] Q&A Session Summary Question: Update on the political landscape ahead of the presidential elections - Management noted significant polarization in Colombia and indicated that clarity on candidates will emerge by early next year [46][47] Question: Expectations for net interest margins (NIM) - Management expects NIM to remain stable, potentially reaching around 6% by year-end, influenced by inflation risks and Central Bank policies [48][49] Question: Clarification on Bancolombia unit ROE - Management clarified that the pro forma ROE for Bancolombia is in the mid-20s, while the calculated ROE based on the last twelve months of equity is around 16.5% [61][71] Question: Economics of lending in NEKI - Management reported that NEKI's average loan is around COP 2,500,000, with a cost of risk around 9-10%, indicating profitability despite the risks [80][81] Question: Sustainability of cost of funding - Management emphasized a focus on value proposition to maintain low cost of funding, with savings accounts growing significantly [92] Question: Capital distributions and buybacks - Management indicated that buybacks will continue to support dividend distributions, maintaining a strong capital structure [94]

Grupo Cibest Overview - Grupo Cibest's assets reached $375 billion, with liabilities of $333 billion and equity of $41 billion[4] - The group serves over 33 million clients and employs 33,993 individuals[4] - The company's Return on Equity (ROE) stands at 175% and Double Leverage at 105%[4] Strategic Business Model - Bancolombia S A is the leading financial institution in Colombia, serving over 16 million customers with a market share of 28% in gross loans and 26% in deposits[15] - Bancoagrícola is the largest financial institution in El Salvador, serving over 17 million customers with a market share of 25% in gross loans and deposits[10] - Banistmo is the second largest financial institution in Panama, serving over 557,619 customers with a market share of 8% in gross loans and deposits[11] - Grupo Agromercantil Holding (GAH) is the fourth largest financial institution in Guatemala, serving 617,819 clients with a market share of 10% in gross loans and 8% in deposits[9] Financial Performance 2Q25 - Total gross loans increased by 44% year-over-year and 04% quarter-over-quarter[44] - Total deposits increased by 96% year-over-year and 24% quarter-over-quarter[66] - Net Interest Margin (NIM) is at 66%[24] - The efficiency ratio is 507%[24]

Core Viewpoint - Bancolombia (CIB) and Banco Itau (ITUB) are both considered as potential undervalued stocks in the foreign banking sector, with a focus on their valuation metrics to determine the better investment option [1]. Valuation Metrics - CIB has a forward P/E ratio of 6.81, while ITUB has a forward P/E of 8.60, indicating that CIB may be more undervalued [5]. - The PEG ratio for CIB is 0.96, compared to ITUB's PEG ratio of 0.97, suggesting that both companies have similar expected EPS growth rates [5]. - CIB's P/B ratio is 1.26, while ITUB's P/B ratio is 1.88, further supporting the notion that CIB is the more attractive value option [6]. Earnings Outlook - Both CIB and ITUB currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3][6]. - CIB has been assigned a Value grade of B, while ITUB has a Value grade of D, highlighting CIB's superior valuation metrics [6].

Core Viewpoint - Investors in the Banks - Foreign sector should consider Bancolombia (CIB) and Nordea Bank AB (NRDBY) as potential value opportunities, with CIB currently presenting a superior value option based on valuation metrics [1][7]. Valuation Metrics - Both Bancolombia and Nordea Bank AB have a Zacks Rank of 1 (Strong Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3]. - CIB has a forward P/E ratio of 6.98, while NRDBY has a forward P/E of 9.27, suggesting that CIB is more attractively priced [5]. - CIB's PEG ratio is 0.98, indicating a favorable valuation relative to its expected earnings growth, whereas NRDBY's PEG ratio is significantly higher at 5.65 [5]. - CIB's P/B ratio is 1.29, compared to NRDBY's P/B of 1.64, further supporting CIB's stronger valuation metrics [6]. - CIB has a Value grade of B, while NRDBY has a Value grade of D, highlighting the relative undervaluation of CIB [6].

Core Viewpoint - Bancolombia (CIB) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook driven by rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Bancolombia's earnings estimate for the fiscal year ending December 2025 is projected at $6.47 per share, remaining unchanged from the previous year, while the Zacks Consensus Estimate has increased by 6% over the past three months [8]. Institutional Investor Influence - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Bancolombia's upgrade places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Group 1: BanColombia (CIB) - BanColombia is the largest bank in terms of assets and has the largest market participation in deposit products and loans [1] - The Zacks Consensus Estimate for its current year earnings has increased by 4% over the last 60 days [1] - The company has a dividend yield of 12.4%, significantly higher than the industry average of 3.3% [1] Group 2: Intercorp Financial Services (IFS) - Intercorp Financial Services provides financial products and services [2] - The Zacks Consensus Estimate for its current year earnings has increased by 2.6% over the last 60 days [2] - The company has a dividend yield of 2.5%, compared to the industry average of 0.0% [2] Group 3: Seven and I Holdings Co. (SVNDY) - Seven and I Holdings is a Japan-based holding company focusing on seven business areas including convenience stores and financial services [3] - The Zacks Consensus Estimate for its current year earnings has increased by 18.5% over the last 60 days [3] - The company has a dividend yield of 1.2%, compared to the industry average of 0.0% [3]

Group 1 - Grupo Cibest (CIB) shares increased by 5.5% to close at $44.97, with trading volume significantly higher than usual, compared to a 2.5% gain over the past four weeks [1][2] - The rise in CIB's share price is attributed to reduced geopolitical tensions in the Middle East following President Trump's intervention, which has boosted investor confidence in global stock markets [2] - CIB is expected to report quarterly earnings of $1.63 per share, reflecting a year-over-year increase of 13.2%, with revenues projected at $1.83 billion, up 3% from the previous year [3] Group 2 - The consensus EPS estimate for CIB has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - CIB currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [5] - KBC Group, a peer in the same industry, has a consensus EPS estimate of $1.34, representing a year-over-year change of 10.7%, and also holds a Zacks Rank of 3 (Hold) [6]

Group 1 - Bancolombia has rebranded itself as "Grupo Cibest" and is a bank holding company based in Colombia [1] - The company is the direct owner of several banks, including Bancolombia (the largest bank in Colombia), Bancoagricola (the largest bank in El Salvador), Banistmo (the second-largest bank in Panama), and BAM [1]