Core Viewpoint - Bancolombia (CIB) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates in determining stock price movements, with a strong correlation between earnings estimate revisions and near-term stock performance [4][6]. - Rising earnings estimates for Bancolombia indicate an improvement in the company's underlying business, suggesting that investors may respond positively by driving the stock price higher [5][10]. Zacks Rating System - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The upgrade of Bancolombia to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9][10]. Earnings Estimate Revisions for Bancolombia - For the fiscal year ending December 2025, Bancolombia is expected to earn $6.30 per share, which remains unchanged from the previous year, while the Zacks Consensus Estimate has increased by 1.4% over the past three months [8].

Core Viewpoint - Investors in the Banks - Foreign sector should consider Bancolombia (CIB) and Banco Itau (ITUB) for potential undervalued stock opportunities [1] Group 1: Zacks Rank and Earnings Outlook - Bancolombia has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Banco Itau has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank emphasizes companies with positive earnings estimate revisions, suggesting that CIB is likely experiencing a more favorable earnings outlook [3] Group 2: Valuation Metrics - CIB has a forward P/E ratio of 6.55, significantly lower than ITUB's forward P/E of 9.53, indicating that CIB may be undervalued [5] - CIB's PEG ratio is 0.92, while ITUB's PEG ratio is 1.17, suggesting that CIB's stock is expected to grow at a better rate relative to its price [5] - CIB's P/B ratio is 1.19 compared to ITUB's P/B of 1.99, further supporting the notion that CIB is undervalued [6] Group 3: Value Grades - CIB has earned a Value grade of A, while ITUB has a Value grade of D, indicating a stronger valuation profile for CIB [6] - The combination of Zacks Rank and Style Scores suggests that value investors may prefer CIB over ITUB at this time [6]

Core Viewpoint - The article emphasizes the importance of value investing and highlights BanColombia (CIB) as a strong value stock based on various financial metrics [2][8]. Company Overview - BanColombia (CIB) currently holds a Zacks Rank of 2 (Buy) and has a Value grade of A [4]. - The stock is trading with a P/E ratio of 6.63, significantly lower than its industry's average of 9.46 [4]. - CIB's Forward P/E has fluctuated between 5.05 and 7.19 over the past year, with a median of 5.51 [4]. Valuation Metrics - CIB has a P/B ratio of 1.22, which is favorable compared to the industry's average P/B of 2.28 [5]. - The P/S ratio for CIB is 0.98, while the industry's average P/S is 1.55, indicating a potential undervaluation [6]. - CIB's P/CF ratio stands at 7.71, compared to the industry's average of 16.13, suggesting strong cash flow relative to its market value [7]. Investment Potential - The various valuation metrics indicate that BanColombia is likely undervalued at present, making it an attractive option for value investors [8].

Financial Data and Key Metrics Changes - The quarterly net income reached COP 1.7 trillion, reflecting a 4.5% growth both quarterly and annually [6][28] - The return on equity (ROE) for the quarter was 16.3%, with a return on tangible equity of 20.4% [29] - The loan portfolio decreased slightly this quarter but grew 7% annually [6][20] - Deposits fell by 1% in the quarter yet increased almost 13% annually [7][21] - The cost of risk for the period was 1.6%, showing improved asset quality [7][26] Business Line Data and Key Metrics Changes - The retail segment saw an increase in market share in savings accounts and time deposits by 110 basis points as of February 2025 [16] - NEKI's deposits experienced a significant growth of 70% year over year [17] - Credit card loans market share increased by 20 basis points, representing nearly 30% of transaction value [17] Market Data and Key Metrics Changes - The Colombian economy showed signs of recovery with increased investment and domestic demand despite global trade tensions [5] - Inflation rates remained stable, leading to unchanged interest rates [5] - The exchange rate depreciated up to 8% during March, impacting local assets [12] Company Strategy and Development Direction - The merger of Bancolombia ALA MANO with NEKI aims to enhance financial inclusion and meet evolving technological needs [14] - The company is transitioning to Grupo Cypest, allowing for more value distribution, including an extraordinary dividend [8] - A share buyback program is planned for approval at an upcoming extraordinary shareholders meeting [9] Management's Comments on Operating Environment and Future Outlook - Management expects GDP growth of 2.6% for 2025, with a slight increase to 3% in 2026 [11] - The fiscal situation in Colombia is a significant challenge, with a projected fiscal deficit of 5.9% of GDP [54] - The company remains cautious regarding the cost of risk due to macroeconomic uncertainties [70] Other Important Information - The company plans to release consolidated results for the second quarter on August 6, including a new accounting structure [9] - The efficiency ratio fell to 49.6%, indicating improved operational efficiency [28] Q&A Session Summary Question: Regarding personal expenses tracking above inflation - Management explained that the increase in personal expenses is due to higher provisions for bonuses compared to the previous year, which were lower due to lower net income expectations [40][41] Question: On margin optimization and funding costs - Management acknowledged the competitive environment for funding but expressed confidence in maintaining margins through effective cost management strategies [36][37] Question: Thoughts on political and economic outlook in Colombia - Management indicated that the fiscal situation is a significant challenge and emphasized the need for the new government to address it [52][54] Question: ROE targets for subsidiaries - Management provided ROE targets, expecting Banco Agricola in El Salvador to exceed 20%, Banismo in Panama to exceed 10%, and BAM to reach around 14-15% [58][59] Question: Impact of lower oil prices on GDP and fiscal forecasts - Management maintained the GDP growth forecast of 2.6% but acknowledged that lower oil prices could impact fiscal revenues and expenditures [68] Question: Guidance on provisions and growth expectations - Management confirmed that provisions are expected to remain prudent despite positive asset quality trends, with specific growth rates projected for different loan segments [82]

Financial Data and Key Metrics Changes - The quarterly net income reached COP 1.7 trillion, reflecting a 4.5% growth both quarterly and annually [5][29] - The return on equity (ROE) for the quarter was 16.3%, with a return on tangible equity of 20.4% [30] - The loan portfolio decreased slightly this quarter but grew 7% annually [5][21] - Deposits fell by 1% in the quarter yet increased almost 13% annually [6][22] - The cost of risk for the period was 1.6%, showing improved asset quality [6][27] Business Line Data and Key Metrics Changes - The retail segment saw an increase in market share in savings accounts and time deposits by 110 basis points as of February 2025 [16] - NEKI's deposits experienced a significant growth of 70% year over year [18] - Credit card loans market share increased by 20 basis points, representing nearly 30% of transaction value [18] Market Data and Key Metrics Changes - The Colombian economy showed signs of recovery with increased investment and domestic demand despite global trade tensions [4] - Inflation rates remained stable, leading to unchanged interest rates during the quarter [4] - The exchange rate depreciated up to 8% during March, impacting local assets [12] Company Strategy and Development Direction - The merger of Bancolombia ALA MANO with NEKI aims to enhance financial inclusion and meet evolving technological needs [14] - The company plans to distribute an extraordinary dividend of $6.24 per share, resulting in a total dividend payout of 69% for the year [7] - A share buyback program is planned for approval at an upcoming extraordinary shareholders meeting [8] Management's Comments on Operating Environment and Future Outlook - Management maintains a GDP growth expectation of 2.6% for 2025, with a slight increase to 3% in 2026 [11] - The fiscal situation in Colombia is viewed as a significant challenge, with a projected fiscal deficit of 5.9% of GDP [51][53] - The company remains cautious regarding the cost of risk due to macroeconomic uncertainties [69] Other Important Information - The company achieved a total solvency ratio of nearly 13% and a core equity Tier one ratio of 11.2% [7][30] - The transition to the Mibanco Columbia App has enhanced customer experience, with 8.5 million users migrated [8] Q&A Session Summary Question: Regarding personal expenses and bonus line tracking above inflation - Management explained that the first quarter's higher provisions for bonuses were due to improved net income expectations compared to the previous year [39] Question: On margins and funding optimization - Management acknowledged the competitive environment for funding but expressed confidence in maintaining net interest margin (NIM) guidance of around 6.2% [37][38] Question: Political and economic outlook in Colombia - Management indicated that the fiscal situation is a key challenge, with expectations for a clearer political landscape by the end of the year [50][51] Question: ROE targets among subsidiaries - Management provided ROE targets of above 20% for Banco Agricola in El Salvador, above 10% for Banismo in Panama, and around 14-15% for BAM in Guatemala [57][59] Question: Impact of lower oil prices on GDP and fiscal forecast - Management maintained the GDP growth expectation of 2.6% but acknowledged potential revisions due to lower oil prices impacting fiscal revenues [66] Question: Provisions and growth relationship - Management confirmed guidance for commercial loans growing at 4%, mortgage loans at 4.5%, and consumer loans at 8% [83]

Earnings Results 1Q25 1Q25 Overview Financial Highlights • Net income COP 1.7 trillion and NIM 6.4% Credit Risk Other Highlights • ROE 16.3% ; ROTE 20.4% • Loan book down -0.3% QoQ and up 7.0% YoY • Deposits down -1.1% QoQ and up 12.8% YoY • Basel III CET1 Capital Ratio of 11.16% and Total Capital Ratio of 12.91% • Net provision charges amounted to 1.1 trillion up 18.3% QoQ equivalent to a quarterly annualized CoR of 1.6% • 90 days PDLs Coverage ratio of 162.5% • Allowances represent 5.2% of total loans • S ...

Group 1 - The bank has received regulatory non-objection for the proposal to reorganize its corporate structure, indicating that the implementation is imminent [1] - The shareholder meeting was described as busy, suggesting active engagement and decision-making among stakeholders [1] Group 2 - The article reflects a long-term investment perspective, emphasizing the importance of knowledge compounding and strategic thinking in investment [1]

Group 1: Market Overview - Major U.S. indexes, including the Nasdaq Composite, S&P 500, and Dow Jones Industrial Average, have experienced year-to-date losses of 13.5%, 8.6%, and 6.9% respectively, primarily due to President Trump's foreign tariff policy, particularly with China, where the effective tax rate is as high as 145% [1] - Consumer sentiment for April, reported by the University of Michigan, was at 50.8, the lowest since June 2022, driven by concerns over rising inflation [2] - The core Producer Price Index (PPI) for March increased by 0.3%, indicating ongoing price pressure, while the PPI for final demand decreased by 0.4% during the same period [2] Group 2: Federal Reserve and Economic Policy - Federal Reserve Chair Jerome Powell indicated that more clarity is needed before making further interest rate cuts, suggesting a delay in monetary policy easing [3] - President Trump is advocating for immediate monetary policy easing by the Fed to prevent the economy from slipping into a recession [3] - Market participants are concerned that the ongoing trade conflict and rising inflation could lead to slower job growth and diminished business confidence [3] Group 3: Investment Opportunities - Amid volatile market conditions, investors looking to diversify their portfolios can consider dividend-paying stocks, which indicate a healthy business model [4] - Notable dividend-paying companies include Synchrony Financial (SYF), Peoples Bancorp (PEBO), BanColombia (CIB), The Travelers Companies (TRV), and Fomento Economico Mexicano (FMX) [4] - Stocks that have recently raised dividends tend to exhibit a sound financial structure and can outperform non-dividend-paying stocks in volatile markets [4] Group 4: Synchrony Financial - Synchrony Financial is a leading consumer financial services company offering a wide range of credit products through various retailers and providers [5] - On April 22, SYF declared a dividend of 30 cents per share, with a dividend yield of 2.1% [6] - Over the past five years, SYF has increased its dividend three times, with a current payout ratio of 15% of earnings [6]

CONSOLIDATED FINANCIAL STATEMENTS The Bank's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management's Report on Internal Control over Financial Reporting appearing under Item 15. Our responsibility is to express opinions on the Bank's consolidated financial statements and on the Banks's internal control over fina ...

Group 1 - Bancolombia S.A. has filed its annual report on Form 20-F for the year ended December 31, 2024 with the U.S. Securities and Exchange Commission (SEC) [1] - The annual report can be downloaded from the SEC website and will also be available on Bancolombia's website in the Investor Relations section in the coming days [1] - For those needing a hard copy of the Form 20-F, Bancolombia provides a contact email for requests [1]