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]