Q & A Highlights

Q: Yuri Fernandes (JPMorgan) asked about the outlook for the second half of 2026 versus the first half, given the strong first-half results and the company's guidance, and also inquired about asset quality risks from the earthquake and the stronger currency. A: CEO Juan Carlos Mora stated that the second half is usually seasonally stronger, and while there are factors like El Nino and the earthquake that could impact credit risk, the company expects a strong quarter in line with the first half. CFO Mauricio Botero Wolff added that the first-half ROE of 21.5% is in the middle of the guidance range, and while there are downside risks to asset quality, there are also upside risks, so the 21%-22% ROE guidance remains appropriate.

Q: Ernesto Gabilondo (Bank of America) asked about NIM trends in a higher-for-longer rate environment, the sustainability of the 21%-22% ROE, and the maximum acceptable levels for Nequi's NPL and cost of risk ratios. A: CEO Juan Carlos Mora stated that a sustainable ROE above 20% is achievable even with rate normalization. Regarding Nequi, he noted the loan book is profitable at current levels, and they are confident there will be no additional deterioration. CFO Mauricio Botero Wolff explained that the asset-sensitive balance sheet will continue to benefit from rate hikes, and while derivatives are a tool, they are not needed yet. He noted the NIM sensitivity has increased from 20 to 25 basis points per 100 basis point rate change due to the Banistmo divestment.

Q: Brian Flores (Citibank) asked about the team's views on the incoming administration and its potential impact on the financial sector, as well as capital allocation priorities. A: CEO Juan Carlos Mora expressed a positive view on the new administration, noting the Finance Minister's focus on fiscal deficit reduction and creating a business-friendly environment, though he acknowledged challenges ahead. CFO Mauricio Botero Wolff outlined capital allocation priorities: extraordinary dividends for specific corporate events, ordinary dividends growing in real terms, buybacks executed according to market conditions, and corporate development initiatives linked to strategy. He noted over COP5 trillion in capital has been deployed in the past 12-15 months.

Q: Carlos Gomez-Lopez (HSBC) asked about the chances of the usury rate cap being reviewed by the new government and the group's geographical strategy over the next five years. A: CEO Juan Carlos Mora stated that the interest rate cap is a continuous conversation, and the banking association is promoting alternatives to create more credit opportunities, though it will take time to evolve. Regarding geography, he said the group is looking at opportunities in Latin America, not through traditional acquisitions of established institutions, but by deploying capabilities created with Nequi, Wenia, and Wompi to serve markets in other geographies.

Q: Juliana Ohara (Goldman Sachs) asked about the strategic rationale behind the Avista acquisition and what drove the strong equity income and fees, and whether they are sustainable. A: CEO Juan Carlos Mora explained that Avista complements their payroll lending offering, bringing expertise and technology to grow in a segment with lower cost of risk. Regarding the strong performance, he noted an open window for carry trade from international investors, which the bank is taking advantage of with short-term investments, and that bancassurance fees, particularly through the SURA partnership, are sustainable and will continue to perform strongly.

Q: Andres Soto (Santander) asked about the transition from consumption-driven growth to investment-driven growth under the new government, the impact of the earthquake on the portfolio, and the double leverage ratio after capital optimization initiatives. A: Chief Economist Laura Clavijo noted that GDP growth is expected to moderate to 2.6%, with investment recovery likely favoring growth in the second half of 2027, while consumption remains strong but is moderating. CFO Mauricio Botero Wolff stated that downside risks to asset quality include the earthquake, El Nino, and exchange rate effects on exporters. He confirmed the double leverage ratio is expected to close the year at 105%, well below the 120% appetite, with Bancolombia's solvency expected at 15.3%.

Q: Daniel Vaz (Banco Safra) asked about the 2027 loan growth appetite across commercial, consumer, and mortgage segments. A: CFO Mauricio Botero Wolff stated that 2027 loan growth should be in the upper part of the 2026 guidance range of 7%-8%, with double-digit growth expected for mortgages and consumer loans, but commercial loans around 8%. He noted that significant corporate investments will take time to materialize due to high interest rates and infrastructure structuring terms, with more growth expected in the second half of 2027.

Q: Santiago Villanueva (Davivienda Corredores) asked about Bancolombia's competitive position relative to the market, the sustainability of the asset mix shift toward investments, and the breakdown of NIM guidance. A: CEO Juan Carlos Mora stated that the focus is on delivering strong ROE through competitive advantages, not on pressuring prices or gaining market share. CFO Mauricio Botero Wolff explained that the investment portfolio growth was due to a window opportunity from carry trade and low credit demand during the electoral process, and a recomposition toward loans is expected as demand picks up. He provided NIM guidance breakdown: lending NIM around 8% and investment NIM around 3.5% for the full year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .