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]