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Bancolombia (CIB)
NYSE:CIB
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Bancolombia
(NYSE:CIB)
70Outperform
Positive Factors
Earnings
Net income was above expectations due to lower provision charges, despite softer fee income and higher operating expenses.
Macroeconomic Outlook
Bancolombia is well positioned to benefit from a nascent macroeconomic recovery.
Negative Factors
Net Interest Margin
Bancolombia’s earnings are seen as being limited due to NIM pressure from lower rates.
Bancolombia (CIB) vs. S&P 500 (SPY)
Market Cap
$10.40B
Dividend Yield8.38%
Average Volume (3M)438.73K
Price to Earnings (P/E)6.3
Beta (1Y)0.63
Revenue Growth10.45%
EPS Growth8.04%
CountryUS
Employees34,279
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)4.16
Shares Outstanding113,030,600
10 Day Avg. Volume398,917
30 Day Avg. Volume438,730
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)N/A
Price to Sales (P/S)1.53
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$44.50Price Target Upside7.57% Upside
Rating ConsensusHold
Number of Analyst Covering2
Bancolombia Business Overview & Revenue Model
Company DescriptionBancolombia S.A. (CIB) is a leading financial institution based in Colombia, serving as a comprehensive provider of banking and financial services across Latin America. The company operates in various sectors, including retail banking, corporate banking, investment banking, and asset management. Bancolombia offers a wide range of products such as savings and checking accounts, loans, mortgages, credit cards, investment advisory, and insurance services, catering to both individuals and businesses.
How the Company Makes MoneyBancolombia makes money primarily through interest income generated from its lending activities, including personal loans, mortgages, and corporate loans. Additionally, the bank earns revenue from fees and commissions associated with its banking services, such as transaction fees, account maintenance charges, and credit card fees. Bancolombia also generates income through investment banking activities, including advisory services and underwriting. Key partnerships with financial technology firms and other strategic alliances enhance its service offerings and expand its market reach, contributing to its earnings. The company also benefits from its asset management services, providing investment solutions and managing funds for its clients.
Bancolombia Financial Statement Overview
Summary
Bancolombia displays a mixed financial performance with a stable balance sheet and adequate cash flow but struggles with profitability. The income statement highlights operational challenges with a negative EBIT despite high gross profit margins. The balance sheet remains strong with reasonable leverage and equity positions. Cash flow is positive but shows declining free cash flow growth, indicating potential future liquidity concerns.Income Statement
Bancolombia's revenue has shown a decrease in the TTM compared to the previous year, coupled with a negative EBIT indicating operational challenges. The gross profit margin remains high, suggesting efficient cost management, but the net profit margin is relatively low due to the negative EBIT. Overall, the income statement reflects a mixed performance with room for improvement in profitability.55
Neutral
Balance Sheet
The balance sheet shows a strong equity position with a stable debt-to-equity ratio, indicating moderate financial leverage. Return on Equity (ROE) is reasonable, providing acceptable returns to shareholders. The equity ratio suggests a stable financial structure. Overall, the balance sheet is solid with manageable debt levels and good equity strength.70
Positive
Cash Flow
Operating cash flow is significantly positive, but free cash flow has decreased compared to previous periods, reflecting increased capital expenditures. The operating cash flow to net income ratio is favorable, indicating strong cash generation ability. However, the decline in free cash flow growth raises concerns about future liquidity. Overall, cash flow health is adequate but shows some signs of pressure.65
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 35.02T | 20.88T | 24.21T | 17.36T | 15.72T | 15.82T | Gross Profit |
| 34.77T | 47.08T | 19.31T | 17.36T | 15.72T | 15.82T | EBIT |
| -3.63T | 10.27T | 17.02T | 5.86T | 269.41B | 4.38T | EBITDA |
| 266.84B | 10.27T | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 6.05T | 6.12T | 6.78T | 4.09T | 275.99B | 3.12T |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 17.80T | 11.65T | 24.72T | 23.15T | 20.19T | 18.26T | Total Assets |
| 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | Total Debt |
| 36.63T | 32.09T | 41.17T | 31.46T | 32.15T | 35.71T | Net Debt |
| 20.79T | 127.11B | 16.45T | 8.32T | 11.96T | 17.46T | Total Liabilities |
| 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | Stockholders Equity |
| 24.85T | 38.09T | 39.09T | 32.23T | 26.55T | 26.88T |
| Cash Flow | Free Cash Flow | ||||
| 902.21B | 16.74T | 3.03T | 3.91T | 9.70T | 10.76T | Operating Cash Flow |
| 2.86T | 19.15T | 6.56T | 6.10T | 11.23T | 12.32T | Investing Cash Flow |
| -10.92T | -159.69B | -4.65T | -650.49B | -7.52T | -2.19T | Financing Cash Flow |
| 4.74T | 11.59T | 853.44B | -6.81T | -4.92T | -5.26T |
Bancolombia Technical Analysis
Positive
41.37
Price Trends
37.61
Positive
34.58
Positive
32.93
Positive
Market Momentum
0.91
Positive
56.14
Neutral
44.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CIB, the sentiment is Positive. The current price of 41.37 is below the 20-day moving average (MA) of 41.59, above the 50-day MA of 37.61, and above the 200-day MA of 32.93, indicating a neutral trend. The MACD of 0.91 indicates Positive momentum. The RSI at 56.14 is Neutral, neither overbought nor oversold. The STOCH value of 44.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CIB.
Bancolombia Risk Analysis
Bancolombia disclosed 38 risk factors in its most recent earnings report. Bancolombia reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bancolombia Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $51.81B | 7.23 | 20.84% | 3.02% | 1.25% | 20.03% | |
80 Outperform | $10.00B | 6.35 | 32.82% | 4.64% | 30.54% | 97.65% | |
74 Outperform | $1.33B | 8.10 | 23.58% | 1.24% | 18.91% | 238.93% | |
70 Outperform | $10.40B | 6.33 | 15.62% | 8.38% | 10.45% | 8.04% | |
70 Outperform | $20.06B | 6.87 | 10.44% | 1.58% | -8.06% | 3.79% | |
66 Neutral | $16.15B | ― | 11.61% | 4.98% | -3.94% | ― | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% |
* Financial Sector Average
Performance Comparison
CIB
Bancolombia
41.37
11.96
40.67%
BBD
Banco Bradesco SA
2.00
-0.70
-25.93%
BSBR
Banco Santander Brasil
4.35
-1.15
-20.91%
GGAL
Grupo Financiero Galicia SA
54.39
31.84
141.20%
ITUB
Itau Unibanco
5.65
-0.90
-13.74%
SUPV
Grupo Supervielle SA
12.60
7.52
148.03%
Bancolombia Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: 0.68% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
Bancolombia S.A. demonstrated strong financial performance with improved ROE, increased net income, and effective cost control, despite some challenges such as NIM compression and underperformance in Banistmo. The macroeconomic environment showed positive trends, including reduced inflation and economic growth, supporting a favorable outlook.Highlights
Net Income and Loan Growth
Net income for the quarter amounted to 1.7 trillion pesos, reflecting an 11% increase due to resumed loan growth and a significant reduction in provision expenses.
Return on Equity (ROE) Improvement
Overall, the return on equity for the quarter increased to 15.7%. Net income for the year was 6.3 trillion pesos, a 2.5% increase, boosting shareholders' equity by 14.3% and resulting in a 15.8% ROE.
Proposed Dividend Increase
A proposed dividend amounting to approximately 3.8 trillion pesos, representing a 10.3% year-over-year increase, achieving a payout ratio of 60%.
Macroeconomic Performance
The Colombian economy expanded at an annual rate of 1.7% in 2024. Inflation continued its downward trend, reaching 5.2% by year-end.
Digital and Multichannel Platform Expansion
Launched the Tuz Jabbas program, enhancing interoperability and financial inclusion. Bancolombia S.A. now serves 6 out of 10 Colombians, managing 33% of the country's payrolls.
Improvement in Asset Quality
Loan deterioration decreased, with net provision expenses falling by 41% quarter over quarter and the cost of risk for the year reaching 2.1%.
Sustainability Initiatives
Bancolombia S.A. scored 85 out of 100 in the Dow Jones Sustainability Index and ranked first in America.
Lowlights
Net Interest Margin Compression
Net interest margin for the quarter was 6.4%, a 42 basis point reduction, and 6.8% for the full year, a 20 basis point contraction due to a lower-yielding portfolio.
Banistmo's Performance in Panama
Banistmo's net income dropped 56%, resulting in a 4.5% ROE for the year due to lower net interest income and higher provision expenses.
Operating Expenses Increase
Operating expenses increased 13.4% compared to the previous quarter, with a cost-to-income ratio of 49% compared to 45% the previous year.
Challenges in Specific Sectors
Underwhelming performance from mining, manufacturing, and housing sectors continued to reflect challenges in the Colombian economy.
Company Guidance
During Bancolombia S.A.'s fourth quarter 2024 earnings call, the company provided comprehensive guidance for 2025. Bancolombia anticipates a consolidated loan growth of 5.6%, slightly below previous projections, attributing the adjustment to SAFE's loan growth in the previous quarter. The net interest margin is projected to be around 6.2%, dependent on the central bank's rate-cutting pace. The cost of risk is expected to range between 1.9% and 2.1%, while the efficiency ratio is anticipated to be approximately 51%. The bank also forecasts a return on equity of around 14% and a core equity tier one ratio between 11% and 11.5%. Additionally, Bancolombia announced a proposed dividend of approximately 3.8 trillion pesos, representing a 10.3% year-over-year increase and a payout ratio of 60%, with the dividend to be paid in a single installment of 3,900 pesos per share on April 1, 2025. The call also highlighted progress towards establishing Grupo Sura as the new holding company, with regulatory approvals obtained from Central American regulators and ongoing processes with the Colombian regulator, aiming for completion by the second quarter of 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.