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][14] - Consumer loans were the main driver of growth, with credit card usage and Nequi's performance contributing significantly [14][22] - Mortgages registered strong growth, with an annual increase of 11% [14] Market Data and Key Metrics Changes - The Colombian economy sustained a recovery with an expected annual growth rate of 2.4% for Q3, consistent with a full-year GDP forecast of 2.6% [10] - Central American operations showed resilience, with El Salvador expected to grow 2.2% and Guatemala projected to expand 3.6% [12] Company Strategy and Development Direction - The company is well-positioned to deliver sustained value creation for shareholders through a new corporate structure under a holding company [6] - The share buyback program is progressing well, enhancing ROE performance and boosting key valuation metrics [7][8] - The launch of Nequi is seen as a significant step towards sustained profitability, with expectations of breakeven by Q1 of next year [5][22] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of a robust digital offer combined with physical presence to manage funding costs effectively [36] - The company anticipates loan growth of approximately 3.5% for 2025, with a net interest margin estimated at 6.5% [30][31] - The cost of risk is expected to be in the range of 1.5-1.7%, indicating continued improvements in asset quality [31] Other Important Information - The company reported a significant reduction in net provisions, amounting to COP 800 billion, a 24% quarterly drop [24][26] - Operating expenses decreased by 2.4% during the quarter, driven by efficiency strategies [27] Q&A Session Summary Question: Sustainability of funding costs and potential upward revisions to ROE - Management emphasized a structural advantage in managing funding costs through a diverse deposit base and a robust digital offer, with ROE guidance for 2025 around 17% [35][37] Question: Update on presidential elections and efficiency guidance - Management noted that clarity on presidential candidates will improve by January, with efficiency guidance for 2026 set around 50% [42][46] Question: Loan growth breakdown and sustainable levels for new PDL - Loan growth for 2026 is guided at 7%, with consumer loans expected to grow around 10% [54][58] Question: Model recalibration and tax rates - The model recalibration reflects improved credit risk across all countries, with an effective tax rate for Grupo Cibest around 28% [64][66] Question: Buyback program and Nequi's profitability roadmap - Management expressed satisfaction with the buyback program's progress and highlighted Nequi's strong performance, expecting profitability in 2026 [78][81]

Financial Data and Key Metrics Changes - The company reported a net income of PEN 456 million for the quarter, representing an 81% increase year-over-year, with a return on equity (ROE) of approximately 16% [9][16] - The accumulated ROE for the first nine months of 2025 stands at 17.4%, which would have been 18.3% excluding the one-off impact from Rutas de Lima [15][16] - The risk-adjusted net interest margin (NIM) improved by 60 basis points over the past quarter, with a current NIM of 3.8% [9][28] Business Line Data and Key Metrics Changes - Interbank's loan portfolio grew by over 5% year-over-year, with higher-yielding loans increasing by 7% [21][39] - Interseguro reported strong performance in private annuities and life insurance, with retail premiums growing by 58% year-over-year [10][35] - Inteligo's assets under management reached new record highs, growing at a double-digit pace [7][32] Market Data and Key Metrics Changes - Peru's GDP growth was reported at 3.3% as of August, with private investment projected to grow by 6.5% by year-end [4][12] - Inflation in Peru remains low at around 1.7%, and the Peruvian sol has appreciated by approximately 10% this year [4][11] - The internal demand projection for 2025 has been revised upward to 5.1%, driven by strong growth in private investment and consumption [13][14] Company Strategy and Development Direction - The company aims to achieve digital excellence and deepen primary client relationships through data-driven services and innovation [7][10] - There is a focus on maintaining profitability while expanding into higher-yielding loan segments and enhancing the payments ecosystem with PLIN and Easy Pay [23][25] - The company is committed to long-term sustainability and profitability, adapting quickly to market changes [6][7] Management's Comments on Operating Environment and Future Outlook - Management maintains a cautious outlook due to international conditions and the pre-election period but remains optimistic about Peru's economic stability [4][5] - The company expects to navigate challenges related to pension fund withdrawals while focusing on higher-yielding segments [23][50] - The outlook for 2026 anticipates moderate growth in internal demand and a stable economic environment despite potential political uncertainties [12][14] Other Important Information - The company has provisioned around 40% of its exposure related to Rutas de Lima, which represents less than 1% of its total investment holdings [46][48] - The cost of risk remains low at 2.1%, with expectations for gradual increases as the consumer and small business portfolios expand [27][28] - The company continues to invest in technology and talent to support long-term growth ambitions, with a cost-to-income ratio of 37.7% [20][39] Q&A Session Summary Question: Regarding Rutas de Lima and its impairment level - Management indicated that 40% of impairment has been booked, and the situation is being closely monitored as legal proceedings continue [46][47] Question: Impact of pension withdrawals on retail growth - Management noted that pension withdrawals may have a short-term negative impact on growth but could also lead to increased liquidity and improved collections [50][51] Question: Expected loan growth for 2025 and 2026 - Management expects to continue accelerating growth in credit cards and consumer finance, with a focus on gaining market share [58][59] Question: Corporate-level disbursements in 2026 - Management anticipates mild growth in corporate activity, primarily focused on working capital replenishment and small CapEx, with no large projects expected [63][64]

Financial Data and Key Metrics Changes - The net investment income per share for Q3 2025 was $0.40, with a net asset value (NAV) per share of $12.75, reflecting a decrease of 2.1% from the previous quarter's NAV, partially due to a $0.16 per share special dividend and markdowns on underperforming assets [7][8] - The adjusted NAV per share for Q3 2025, accounting for the supplemental dividend, was $12.71, a non-GAAP measure introduced due to changes in the dividend policy [7] - The company declared a fourth quarter base dividend of $0.32 per share, with a net debt-to-equity ratio of 1.17 as of September 30, 2025, compared to 1.12 as of June 30, 2025 [8][15] Business Line Data and Key Metrics Changes - New investment commitments during the quarter totaled approximately $470.6 million across 27 portfolio companies, marking the highest level of new commitments since Q4 2021 [9] - 100% of originations in the quarter were in first-lien loans, indicating a continued focus on maintaining exposure to the top of the capital structure [9] - Total investments at fair value were $3.2 billion, with 98.2% in senior secured loans and a weighted average yield of 10.3% at amortized cost, down from 10.7% in the previous quarter [12][13] Market Data and Key Metrics Changes - The M&A market showed resilience, with total dollar volumes in Q3 2025 being 40.9% higher year-over-year compared to Q3 2024, driven by renewed risk-on sentiment among investors and lower borrowing costs [3][4] - The company noted that broader credit dynamics remain a concern, but it is comfortable with risk dynamics in the private credit space due to the overall health of portfolio fundamentals [5] Company Strategy and Development Direction - The company has adjusted its dividend policy to position itself well in a lower yield environment, emphasizing credit selection as a key focus [4] - The integration of the platform in 2022 has allowed the company to evaluate and invest in high-quality opportunities across various market segments [11] - The company aims to leverage its proximity to the investment banking franchise as a competitive advantage in evaluating opportunities [4] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the M&A activity being the start of a longer-term trend, driven by the need for private equity firms to exit existing portfolios and invest in new ones [22][23] - The company remains focused on maintaining its dividend and believes that fund managers will be rewarded for their credit selection in a lower-yielding environment [18] Other Important Information - The company repurchased over 2.1 million shares for $25.1 million during the quarter, which was NAV accretive [13] - The company issued $400 million of a five-year investment grade unsecured note with a coupon of 5.65%, which was oversubscribed [16] Q&A Session Summary Question: Thoughts on sustaining M&A activity into next year - Management believes the current M&A activity is the start of a longer-term trend, driven by the need for private equity firms to exit existing portfolios and invest in new ones [22][23] Question: Impact of increased activity on spreads - Management does not anticipate spreads to widen significantly in the near term, despite the increase in M&A activity [24] Question: Performance of non-accrual investment at Dental Brands - Management indicated that the non-accrual status was due to continued underperformance, but it represents a small exposure in the overall portfolio [25][26]

Financial Data and Key Metrics Changes - Quarterly fee-related earnings grew 17% year-over-year to $754 million, while distributable earnings increased 7% to $661 million [5][25] - Fee-bearing capital reached $581 billion, an 8% increase year-over-year, driven by record fundraising [5][24] - The company raised $30 billion in the third quarter, bringing total inflows over the past 12 months to more than $100 billion [7][24] Business Line Data and Key Metrics Changes - The infrastructure and renewable power franchise raised $30 billion, deployed $30 billion, and monetized over $10 billion at approximately 20% returns over the past 12 months [11] - The private equity business launched its seventh vintage, focusing on essential service businesses, with expectations for it to be the largest fund ever [18][75] - The real estate business sold approximately $23 billion of properties, representing $10 billion of equity value over the past 12 months [21] Market Data and Key Metrics Changes - Global M&A volumes increased nearly 25% year-over-year, with $1 trillion in announced deals in the third quarter, the highest since 2021 [8] - The demand for electricity is increasing at an unprecedented rate, driven by electrification trends and the surge in electricity demand from data centers [16][17] Company Strategy and Development Direction - The company is launching an AI Infrastructure Fund to capture opportunities in AI-related infrastructure investments, estimated to exceed $7 trillion over the next decade [14] - A landmark partnership with the U.S. government to construct $80 billion of new nuclear power reactors was announced, positioning the company at the center of clean baseload power development [18] - The company plans to double its business by 2030, with fee-related earnings reaching $5.8 billion and fee-bearing capital reaching $1.2 trillion [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong fundraising momentum and expects 2026 to exceed 2025 levels [37][38] - The company is well-positioned to meet the increasing demand for power solutions, leveraging its renewable power business [17][23] - Management highlighted the importance of operational improvement as a key driver of value creation in the current economic environment [73] Other Important Information - The company declared a quarterly dividend of $43.75 per share, payable on December 31 to shareholders of record as of November 28 [32] - The acquisition of the remaining 26% in Oaktree Capital Management is expected to close in the first half of 2026, enhancing the company's credit capabilities [9][32] Q&A Session Summary Question: Fundraising momentum and management fee growth outlook for 2026 - Management expects fundraising to exceed 2024 levels and anticipates strong growth in management fees driven by new acquisitions and fundraising [37][38] Question: Credit business fee rate and growth aspirations - The elevated fee rate was driven by a mix shift and one-off transaction fees, with a positive trend expected in the credit business [42][43] Question: Integration benefits from acquiring Oaktree - The acquisition will allow for operational synergies, improved marketing capabilities, and enhanced client service [49][52] Question: Retail market momentum and distribution strategy - The company is seeing robust momentum in the retail market and is focused on building relationships with key stakeholders to capture growth opportunities [55][56] Question: Private equity outlook amidst market backdrop - The private equity business is expected to perform well due to its focus on essential assets and operational improvement, differentiating it from peers [73][75]

Financial Data and Key Metrics Changes - Brookfield Infrastructure Partners generated third quarter Funds from Operations (FFO) of $654 million or $0.83 per unit, a 9% increase compared to the previous year, driven by strong organic growth [3][4] - The company maintained a well-capitalized balance sheet with liquidity totaling $5.5 billion at the end of the third quarter [8] Segment Performance Changes - Utilities segment generated FFO of $190 million, slightly ahead of the prior year, benefiting from inflation indexation and over $450 million of capital added to the rate base [3][4] - Transport segment's FFO was $286 million, lower than last year due to asset sales, but slightly ahead when adjusted for capital recycling initiatives [4] - Midstream segment generated FFO of $156 million, a 6% increase over the same period last year, driven by strong customer activity levels [5] - Data segment's FFO was $138 million, representing a more than 60% increase compared to the prior year, driven by strong organic growth and contributions from acquisitions [6] Market Data and Key Metrics Changes - The company completed a $700 million corporate issuance of medium-term notes at a weighted average interest rate of approximately 4%, priced at the tightest credit spreads in its history [7] - The company is on track to achieve $3 billion in asset sale proceeds over the next 12-18 months, with significant sales already completed [11] Company Strategy and Development Direction - The company has secured six new investments totaling over $1.5 billion, including a $1.3 billion New Zealand natural gas infrastructure operation and a $1 billion South Korean industrial gas business [9][10] - The company is focusing on AI-related infrastructure, expecting to deploy up to $500 million annually into this sector [14] - The outlook for Brookfield Infrastructure remains favorable, with expectations for FFO per unit growth to inflect higher due to new investments and macroeconomic trends [12][14] Management's Comments on Operating Environment and Future Outlook - Management noted a significant increase in capital deployment opportunities, particularly in the data sector, despite rising competition [17] - The company remains confident in its ability to source the best opportunities due to its global franchise and access to significant capital [17] - Management highlighted the potential for substantial growth in AI infrastructure, which is seen as a $7 trillion opportunity [14] Other Important Information - The company is contemplating an ATM program for BIPC shares to increase liquidity, with a focus on avoiding dilution to existing shareholders [21][22] - The company is exploring public market exits for its assets, depending on market conditions [26] Q&A Session Summary Question: Thoughts on rising competition for capital deployment opportunities - Management acknowledged increased competition but emphasized their distinct advantage due to global reach and capital access [17] Question: Timing and success metrics for LP unit repurchases - Management indicated that the program is still under consideration, focusing on increasing liquidity without diluting existing shareholders [21][22] Question: Future public market exits for assets - Management confirmed that public markets remain a potential exit strategy, contingent on favorable market conditions [26] Question: Investment thesis for CenterSquare - Management expressed optimism about continued growth and expansion opportunities within the CenterSquare platform [28][29] Question: Organic growth rates in data businesses - Management reported that organic growth in data businesses is tracking slightly ahead of underwriting assumptions, with significant future project potential [46][47]

Financial Data and Key Metrics Changes - The company expects to grow EPS by $1 to $2 in 2026, driven by cost actions and progress from the EM pipeline, even in a flat demand environment [7][8] - Working capital has been a source of cash of $250 million in 2025, but a similar level is not expected in 2026 due to anticipated demand levels [37][38] - Free cash flow is projected to be at least $700-$800 million in 2026, supported by EBITDA improvements and reduced restructuring cash outlay [38] Business Line Data and Key Metrics Changes - Engineered materials volumes were down 8% year-over-year, with standard-grade materials experiencing more significant declines compared to thermoplastic elastomers, which showed growth [19][30] - The company is focusing on cost savings in engineered materials, targeting $30 million-$50 million in additional savings, net of inflation [48][49] Market Data and Key Metrics Changes - Pricing pressure in the acetyl chain has been observed, particularly in Europe, while stabilization and slight price increases were noted in China [17][18] - The company is not seeing extensive inventory destocking across the board, with some pockets of inventory reduction being managed thoughtfully [34][35] Company Strategy and Development Direction - The company is prioritizing cash flow increase, cost improvements, and top-line growth as it moves into 2026 [7] - A focus on divestitures continues, with a commitment to $1 billion in divestitures by the end of 2027, with the recent Micromax transaction contributing significantly towards this goal [54][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving EPS growth despite a challenging demand environment, emphasizing the resilience of the team and the actions taken to position the company for future success [78] - The dialogue around anti-involution in China is increasing, with expectations that profitability of assets in China needs to improve [80][81] Other Important Information - The company recorded a goodwill impairment due to a reduction in market cap, not due to a decline in projected cash flows [72] - The Narco enclosure is expected to yield $20 million-$30 million in productivity savings by 2027 [42] Q&A Session Summary Question: Early look at 2026 earnings control - Management highlighted priorities for 2026, focusing on cash flow, cost improvements, and top-line growth, with expected EPS growth of $1 to $2 [7] Question: EM pricing outlook - Management indicated that there are still opportunities for pricing improvements in EM, particularly in standard-grade materials [10] Question: Operating rates in the acetyl chain - Management noted that the lowest-cost assets are running at full capacity, while other assets are flexibly operated based on demand [13][14] Question: Sequential pricing pressure in the acetyl chain - Pricing pressure has been observed in Europe, particularly in downstream products, while stabilization has occurred in China [17][18] Question: Volume decline in engineered materials - The decline is primarily in standard-grade materials, while thermoplastic elastomers have shown resilience [19][30] Question: Free cash flow expectations - Working capital has been a source of cash in 2025, but similar contributions are not expected in 2026 [37][38] Question: Divestiture strategy - The company is committed to $1 billion in divestitures by 2027, with the Micromax transaction significantly contributing to this target [54][56] Question: Impact of anti-involution on acetyls chain - Management acknowledged the increasing dialogue around anti-involution in China and its potential future impact on profitability [80][81]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $767 million, slightly up sequentially and in line with guidance, but down 1.8% year-over-year from $781 million in Q3 2024 [11][12] - Adjusted EBITDA for the quarter was $40 million, up from $32 million in Q3 2024, with an adjusted EBITDA margin of 5.2%, up 110 basis points year-over-year [12][14] - The net leverage ratio increased to 3.2x due to cash flow items, with adjusted free cash flow for the quarter at -$54 million [15][17] Business Line Data and Key Metrics Changes - The commercial segment adjusted revenue was $367 million, down 4.7% year-over-year, primarily due to volume declines from the largest client [12][13] - Government segment adjusted revenue was down 6.7% at $238 million, attributed to implementation impacts and a client canceling an implementation [13] - Transportation segment adjusted revenue increased by 14.9% year-over-year to $162 million, driven by strong equipment sales [14] Market Data and Key Metrics Changes - New business Annual Contract Value (ACV) signed in the quarter was $111 million, consistent with the prior year, while year-to-date new business ACV was up 5% [10] - The qualified ACV pipeline remains strong at $3.4 billion, up 9% year-over-year, driven by government segment opportunities [11] Company Strategy and Development Direction - The company is focused on portfolio rationalization and enhancing its technology capabilities, particularly in AI initiatives [8][19] - A new board member with significant industry experience has been added to strengthen the board [8] - The company is revising its commercial go-to-market strategy to improve client penetration and sales execution [21] Management's Comments on Operating Environment and Future Outlook - Management noted the impact of the federal government shutdown on deal timing but expressed confidence in achieving adjusted EBITDA margin targets [18][20] - The company anticipates that once the shutdown concerns are resolved, cash flow metrics will improve [7][18] - Management remains optimistic about future growth, citing pent-up demand and ongoing sales pipeline expansion [21][23] Other Important Information - The company has refinanced its revolving credit facility, simplifying its balance sheet [7][15] - AI initiatives are being deployed to enhance operational efficiency and reduce fraud, particularly in government programs [22] Q&A Session Summary Question: How much of the pipeline actually closed this quarter? - Management indicated that the government shutdown has delayed some deals, but they expect a gradual release of opportunities as the situation normalizes [29] Question: How is productivity or quality gains from GenAI being measured? - The primary pilot in the government space focuses on fraud reduction, with expectations of spreading these capabilities across Medicaid and SNAP environments [30][31] Question: Are there any specific costs left to tackle from stranded costs? - Management stated that they are through the initial phase of stranded costs and are continuously optimizing costs across the organization [35] Question: Are there changes to contract clauses to reduce churn risk? - Management confirmed that the revenue stream remains unaffected by the government shutdown, and no changes to the contract model are currently planned [36] Question: What does the client mix look like for AI endeavors? - The commercial space has a significant focus on healthcare, while the government space targets Medicaid processing for fraud reduction [44] Question: What are the growth opportunities on the commercial side? - Management is focused on increasing product penetration within existing clients and enhancing the sales pipeline to support growth [46][47]

Financial Data and Key Metrics Changes - The net investment income per share for Q3 2025 was $0.40, with a net asset value (NAV) per share of $12.75, reflecting a decrease of 2.1% from the previous quarter's NAV [7][8] - The adjusted NAV per share, accounting for the supplemental dividend, was $12.71, a non-GAAP measure introduced due to changes in the dividend policy [7] - The company ended the quarter with a net debt-to-equity ratio of 1.17, up from 1.12 in the previous quarter [8][15] Business Line Data and Key Metrics Changes - New investment commitments reached approximately $470.6 million across 27 portfolio companies, marking the highest level since Q4 2021 [9] - 100% of originations during the quarter were in first-lien loans, indicating a focus on maintaining exposure to the top of the capital structure [9] - Total investments at fair value were $3.2 billion, with 98.2% in senior secured loans [12] Market Data and Key Metrics Changes - M&A dollar volumes in Q3 2025 were 40.9% higher year-over-year compared to Q3 2024, driven by renewed risk-on sentiment among investors and lower borrowing costs [3][4] - The weighted average yield of debt and income-producing investments at amortized cost was 10.3%, down from 10.7% in the previous quarter [13] Company Strategy and Development Direction - The company has adjusted its dividend policy to position itself well in a lower yield environment, emphasizing credit selection [4] - The integration of the platform in 2022 has allowed the company to evaluate and invest in high-quality opportunities across various market segments [11] - The company aims to leverage its proximity to the investment banking franchise as a competitive advantage in deal evaluation [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the M&A market and anticipates continued activity into 2026, driven by private equity firms needing to exit existing portfolios and invest in new ones [22][23] - The company remains focused on downside risk mitigation, particularly in the context of software and AI investments [6] - Overall portfolio quality is stable, with a slight decrease in non-accrual investments [14][25] Other Important Information - The company repurchased over 2.1 million shares for $25.1 million, which was NAV accretive [13] - The board declared a supplemental dividend of $0.04 per share for Q3 2025, payable on or about December 15, 2025 [7] Q&A Session Summary Question: Thoughts on sustaining M&A activity into next year - Management believes the current M&A activity marks the start of a longer-term trend, driven by the need for private equity firms to exit existing portfolios and invest in new ones [22][23] Question: Impact of increased activity on spreads - Management does not anticipate spreads to widen significantly in the near term due to high demand and dry powder in the market [24] Question: Performance of non-accrual investment at Dental Brands - The company placed a senior tranche of Dental Brands on non-accrual status due to continued underperformance, but overall portfolio quality remains stable [25][26]

Financial Data and Key Metrics Changes - The company reported fee-related earnings of $1.15 per share, total operating earnings of $1.55 per share, and adjusted net income of $1.41 per share, all of which are among the highest in its history as a public company [4][6] - Management fees reached $1.1 billion, up 19% year-over-year, with a healthy growth of 16% excluding catch-up fees [4][5] - Total transaction and monitoring fees were $328 million, while capital markets fees were strong at $276 million, driven by private equity and infrastructure activities [5][6] - Adjusted net income was $1.3 billion, or $1.41 per share, reflecting an 8% increase year-over-year [7][8] Business Line Data and Key Metrics Changes - The insurance segment reported operating earnings of $305 million, with a run rate around $250 million [6] - Strategic Holdings operating earnings were $58 million for the quarter, significantly ahead of the previous year [6] - Realized performance and investment income totaled $935 million within the asset management segment [7] Market Data and Key Metrics Changes - The company raised $43 billion in capital during Q3, marking the second-highest fundraising quarter in its history [8][9] - Inflows from Global Atlantic within credit were $15 billion, significantly up year-over-year [9] - The private equity and real asset business lines raised $16 billion of capital in the quarter [10] Company Strategy and Development Direction - The company is evolving its insurance business to extend the duration of its book and leverage its global investment management capabilities [12][14] - There is a focus on raising third-party capital to grow Global Atlantic in a capital-efficient manner [13][14] - The company aims to achieve $4.50+ in fee-related earnings per share and $7+ in after-tax adjusted net income per share by 2026 [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundraising momentum and the ability to achieve 2026 guidance despite potential challenges in the monetization environment [24][26] - The company noted that the current monetization environment is constructive, with expectations for continued strong performance [26][34] - Management highlighted the importance of maintaining a conservative approach to capital deployment and portfolio construction [29][30] Other Important Information - The company has over $1 billion in monetization activity, indicating a healthy portfolio maturity [7][8] - There is a focus on cash outcomes in segment reporting, with a conservative approach to recognizing earnings [19][20] - The company expects to take a one-time charge related to the Asia Private Equity Fund, which will impact net realized performance income in Q4 [22][23] Q&A Session Summary Question: Can you summarize the international perspective regarding investor demand in Asia? - Management noted that investor demand for Asia continues to increase, with a broad understanding of opportunities in markets like Japan, India, and Southeast Asia [36][37] Question: What is the normalized level of ROE for the insurance business? - Management indicated that they expect to achieve an all-in ROE of over 20% as the insurance business matures and third-party capital contributions increase [42][55] Question: How do you see the capital markets business expanding from the GA side? - Management highlighted the potential for significant capital markets opportunities, estimating hundreds of millions of dollars annually as the business develops [60][61] Question: Can you elaborate on how changes in the insurance business enhance client partnerships? - Management emphasized that owning an insurance company provides a better understanding of client needs, allowing for improved service and competitive advantages [70]

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] - ROE expanded by 288 basis points during the period, reaching 20.4% [5][28] - Grupo Cibest's 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 [4][14] - Consumer loans were the main driver of growth, with a notable increase in credit card usage and strong performance from Nequi [14][22] - Mortgages registered an annual growth of 11% [14] Market Data and Key Metrics Changes - The Colombian economy sustained its recovery through the third quarter, with economic activity likely expanding at an annual rate of 2.4% [10] - Central American operations showed notable resilience, with El Salvador expected to grow 2.2% and Guatemala projected to expand 3.6% [12] Company Strategy and Development Direction - The company is well-positioned to deliver sustained value creation for shareholders through a new corporate structure under the holding company [6] - The share buyback program launched in mid-July is enhancing ROE performance and boosting key valuation metrics [7][8] - The launch of Breve was completed smoothly, with Bancolombia and Nequi accounting for 52% of all digital keys registered [9] Management Comments on Operating Environment and Future Outlook - Management anticipates continued improvements in asset quality and a cost of risk in the range of 1.5%-1.7% for 2025 [31] - The company expects loan growth of approximately 3.5% for 2025, with a net interest margin estimated at 6.5% [30][31] - The management is confident that Nequi will reach profitability by 2026, following its separation from Bancolombia [81] Other Important Information - Net provisions amounted to COP 800 billion, a 24% quarterly drop and close to 48% annual contraction [24][25] - Operating expenses decreased by 2.4% during the quarter, driven by efficiency strategies [27] Q&A Session Summary Question: Sustainability of funding costs and potential upward revisions to ROE - Management emphasized a structural advantage in managing funding costs through a robust digital offer and physical presence [36] - ROE guidance for 2025 is around 17%, with potential for improvement [37] Question: Update on presidential elections and efficiency guidance - Management noted that clarity on candidates will emerge closer to the elections, with January and March being key months for assessment [44] - Efficiency guidance for 2026 is around 50%, with ongoing efforts to optimize expenses [46][48] Question: Loan growth breakdown and sustainable levels for new PDL - Loan growth for 2026 is guided at 7%, with consumer loans expected to grow around 10% [54] - Management indicated a cost of risk range of 1.6%-1.8% for 2026, reflecting improved credit risk behavior [55] Question: Model recalibration and tax rates - The model recalibration applies to all banks within Grupo Cibest, reflecting improved credit risk across countries [64] - The effective tax rate for Grupo Cibest is around 28%, varying by country [66] Question: Buyback program and Nequi's profitability roadmap - Management is satisfied with the buyback program's progress and remains flexible regarding future capital allocation [80] - Nequi is expected to continue its growth trajectory, with profitability anticipated in 2026 [81]