Bancolombia SA’s Earnings Call Highlights Robust Growth

Bancolombia SA ((CIB)) has held its Q3 earnings call. Read on for the main highlights of the call.

Bancolombia SA’s recent earnings call showcased a robust financial performance, underscored by notable loan and deposit growth, a high return on equity (ROE), and a strong capital position. Despite facing challenges such as increased administrative expenses and natural net interest margin (NIM) compression, the bank’s strategic initiatives and favorable macroeconomic conditions have contributed to a positive outlook.

Strong Loan Growth

Bancolombia SA reported a significant increase in loans, growing by EGP 119 billion, which represents a 30% growth. This was driven by a 38% increase in local currency loan bookings and a 17% growth in foreign currency loans, reflecting the bank’s strategic focus on expanding its lending portfolio.

Deposit Growth and CASA Improvement

The bank’s total deposits reached EGP 1.04 trillion, marking an 8% increase or EGP 75.3 billion year-to-date. The current account and savings account (CASA) ratio improved significantly from 55% last year to 60% this year, indicating a healthier deposit mix and enhanced liquidity.

High Return on Equity

Bancolombia SA achieved a remarkable return on equity (ROE) of 45.9%. Even when excluding the one-off provision release, the ROE stands at 37.7%, highlighting the bank’s strong profitability and efficient capital utilization.

Record Noninterest Income Growth

The bank experienced a 22% year-over-year growth in fees and commissions income, showcasing its ability to generate substantial noninterest income and diversify its revenue streams.

Strong Capital Position

Bancolombia SA maintained a robust capital position with a capital adequacy ratio (CAR) of 30% and a common equity tier 1 (CET1) ratio of 26% by the end of the third quarter of 2025, ensuring financial stability and resilience.

Increased Administrative Expenses

Administrative expenses rose by 35% over the first nine months of 2025 compared to the same period last year. This increase was attributed to the renewal of expired contracts and the completion of IT projects, reflecting the bank’s investment in infrastructure and technology.

Natural NIM Compression

The bank faced natural NIM compression due to interest rate cuts. However, this was mitigated by disciplined monetary policy and the growth in CASA, helping to maintain profitability.

Provision Release Not Part of Capital Base

A one-time provision release of EGP 13.1 billion was noted, which will not be recognized in the bank’s capital base, CAR, or distributable profits without prior consultation with the Central Bank of Egypt (CBE).

Forward-Looking Guidance

During the earnings call, Bancolombia SA’s management provided guidance based on recent financial performance and macroeconomic conditions. The bank expects continued strong performance, focusing on disciplined growth, maintaining a solid balance sheet, and leveraging macroeconomic improvements. The loan-to-deposit ratio rose to 49.7%, with local currency NIMs at 13%, amidst a declining interest rate environment. The cost-to-income ratio was efficiently managed at 14.3%.

In summary, Bancolombia SA’s earnings call reflected a positive sentiment, driven by strong financial metrics and strategic growth initiatives. The bank’s impressive loan and deposit growth, high ROE, and robust capital position underscore its resilience and potential for future success, despite challenges such as increased administrative expenses and NIM compression.