Earnings GrowthCIBEST's earnings are expected to post soft growth over the next years under lower rates, while country risk for Colombia remains high due to a challenging fiscal outlook.
Interest Rate ImpactCibest is considered the most vulnerable bank under lower interest rates, with a negative impact expected on net interest margins.
Valuation ConcernsCIBEST is already trading at valuations above those in 2022-2023, when its net interest margins and earnings benefited from higher rates.