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Bancolombia SA (CIB)
:CIB
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Bancolombia
(NYSE:CIB)
Rating:75Outperform
Price Target:
$48.00
â–²(6.81% Upside)
Positive Factors
Earnings Growth
El Salvador's earnings rose 54% YoY supported by strong YoY core revenue growth.
Macroeconomic Recovery
Bancolombia is well positioned to benefit from a nascent macroeconomic recovery.
Valuation
At current valuation of 0.9x P/BV, the risk-reward appears highly compelling.
Negative Factors
Earnings Decline
Panama's earnings significantly declined 94% QoQ and -96% YoY due to weaker core revenue generation and higher operating expenses.
Fiscal Outlook
A challenging fiscal outlook for the country, while recent polls are showing different trends when compared to early this year.
Interest Rates Impact
Bancolombia's earnings are seen as being limited due to NIM pressure from lower rates.
Bancolombia (CIB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.87B
Dividend Yield14.57%
Average Volume (3M)251.18K
Price to Earnings (P/E)13.1
Beta (1Y)0.47
Revenue Growth-5.45%
EPS Growth3.43%
CountryUS
Employees34,182
SectorFinancial
Sector Strength64
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.86
Shares Outstanding113,030,600
10 Day Avg. Volume267,568
30 Day Avg. Volume251,175
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$43.00Price Target Upside-4.32% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Bancolombia Business Overview & Revenue Model
Company DescriptionBancolombia S.A. (CIB) is a leading financial institution based in Colombia, providing a wide range of banking products and services across the country and the Latin American region. It operates in the sectors of personal banking, corporate banking, insurance, and asset management. With a comprehensive suite of offerings including savings and checking accounts, loans, credit cards, mortgages, and investment products, Bancolombia serves millions of individual and business clients, aiming to support their financial needs through innovative and customer-focused solutions.
How the Company Makes MoneyBancolombia generates revenue primarily through interest income from loans and advances to customers, which is a key component of its retail and corporate banking operations. Additional revenue streams include fees and commissions from services such as transaction processing, asset management, and insurance products. The bank also earns income through trading and investment activities, including securities trading and foreign exchange services. Bancolombia leverages strategic partnerships and technological innovations to enhance its service offerings and operational efficiency, contributing to its profitability. Furthermore, the bank benefits from its extensive network of branches and digital platforms, which help in reaching a broad customer base and driving growth across different financial segments.
Bancolombia Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q1-2025)
| % Change Since: 11.05%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
Bancolombia's first quarter results showed positive financial performance with increased net income and strong ROE. The successful merger of digital platforms and recognition in ESG are notable achievements. However, challenges remain with a slight contraction in the loan portfolio and a difficult fiscal environment in Colombia, compounded by global economic uncertainties.Q1-2025 Updates
Positive Updates
Quarterly Net Income Increase
Bancolombia reported a quarterly net income of COP 1.7 trillion, reflecting a 4.5% growth both on a quarterly and annual basis.
Strong Return on Equity
The return on equity (ROE) was 16.3% for the quarter, showcasing robust financial performance.
Positive Asset Quality Trends
Improved asset quality with lower delinquency rates and a cost of risk of 1.6% for the period.
Successful Merger of Digital Banking Platforms
Bancolombia A la Mano merged with Nequi, now serving 23.5 million users, enhancing digital service offerings.
Resilient Deposit Growth
Annual deposit growth was 13%, demonstrating Bancolombia's ability to secure funding without raising costs.
Recognition in ESG
Bancolombia was recognized as Colombia's top ESG company for the 6th consecutive year.
Negative Updates
Loan Portfolio Contraction
The loan portfolio slightly decreased on a nominal basis due to a 5% appreciation of the peso.
Challenging Fiscal Environment in Colombia
Colombia faces a challenging fiscal situation with a forecasted fiscal deficit of 5.9% of GDP, impacting local assets and fiscal sustainability.
Impact of Global Economic Uncertainty
Global trade tensions and risk aversion affected emerging markets, impacting Colombia's exchange rate and CDS spread.
Potential Pressure from IMF Credit Line Suspension
Suspension of Colombia's access to the IMF's flexible credit line adds pressure to develop a credible fiscal plan.
Company Guidance
During Bancolombia's first quarter 2025 earnings call, the company provided several key metrics and guidance for the fiscal year. The quarterly net income was reported at COP1.7 trillion, marking a 4.5% growth both quarterly and annually, with a robust net interest margin (NIM) of over 6.4% and a return on equity (ROE) of 16.3%. The loan portfolio decreased slightly during the quarter but grew 7% on an annual basis, while deposits fell by 1% quarterly but increased nearly 13% annually. The cost of risk for the period was 1.6%, supported by improved asset quality and lower delinquency rates. Bancolombia's capital position remains strong with a total solvency ratio of nearly 13% and a core equity Tier 1 ratio of 11%. The company announced the completion of legal steps for reorganizing under the new holding structure, Grupo Cibest, with expected changes in Colombian operations to appear in May's financial statements. For the fiscal year 2025, Bancolombia anticipates loan growth of approximately 5%, a NIM of around 6.2%, a cost of risk between 1.8% and 2%, an efficiency ratio of approximately 51%, and an ROE between 14.5% and 15%.Bancolombia Financial Statement Overview
Summary
Bancolombia exhibits strong revenue and profit growth, reflecting robust performance in the banking sector. While the balance sheet shows prudent leverage management, there is a need for better equity utilization. Cash flow challenges, particularly in 2024, signal a need for enhanced cash management strategies. Overall, the company demonstrates financial stability with areas for operational improvement.Income Statement
The income statement shows strong growth in total revenue and net income over the years, with a revenue increase from 2023 to 2024. The gross profit margin is solid at 100% due to the nature of the banking industry. The net profit margin for 2024 is approximately 28.3%, indicating high profitability. However, the EBIT margin has fluctuated, which suggests varying operational efficiencies.75
Positive
Balance Sheet
The balance sheet reflects a stable equity base with a debt-to-equity ratio of about 0.44 in 2024, indicating a well-managed leverage position. The equity ratio stands at around 11.7%, showing moderate reliance on equity for asset financing. However, the return on equity of approximately 14.4% suggests room for improved equity utilization.70
Positive
Cash Flow
The cash flow statement highlights negative free cash flow in 2024, which raises concerns about cash management, despite positive operating cash flow in prior years. The operating cash flow to net income ratio is negative for 2024, suggesting issues in converting profits into cash flows. Improvements in cash flow efficiency are needed for better financial health.65
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 22.18T | 20.88T | 15.54T | 17.36T | 15.72T |
| Gross Profit | 22.18T | 20.88T | 19.31T | 14.92T | 15.72T |
| EBITDA | 9.77T | 10.27T | 10.69T | 6.84T | 0.00 |
| Net Income | 6.27T | 6.12T | 6.78T | 4.09T | 275.99B |
Balance Sheet | |||||
| Total Assets | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Cash, Cash Equivalents and Short-Term Investments | 19.62T | 11.65T | 24.72T | 23.15T | 20.19T |
| Total Debt | 29.91T | 32.09T | 41.17T | 31.46T | 32.15T |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Stockholders Equity | 43.54T | 38.09T | 39.09T | 32.23T | 26.55T |
Cash Flow | |||||
| Free Cash Flow | -19.94T | 16.74T | 3.03T | 3.91T | 9.70T |
| Operating Cash Flow | -17.89T | 19.15T | 6.56T | 6.10T | 11.23T |
| Investing Cash Flow | -559.20B | -159.69B | -4.65T | -650.49B | -7.52T |
| Financing Cash Flow | 9.09T | 11.59T | 853.44B | -6.81T | -4.92T |
Bancolombia Technical Analysis
Positive
44.94
Price Trends
44.00
Positive
41.96
Positive
36.64
Positive
Market Momentum
0.04
Positive
54.26
Neutral
58.35
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 44.94 is above the 20-day moving average (MA) of 44.61, above the 50-day MA of 44.00, and above the 200-day MA of 36.64, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 54.26 is Neutral, neither overbought nor oversold. The STOCH value of 58.35 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 1 New Risks
1.
The Bank is subject to a wide range of cybersecurity incidents. Q4, 2023
Bancolombia Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $19.25B | 12.46 | 16.35% | 5.89% | 3.89% | 15.26% | |
75 Outperform | $11.87B | 13.12 | 15.99% | 14.57% | -5.45% | 3.43% | |
74 Outperform | $4.65B | 1,013.14 | 0.11% | 3.21% | -46.30% | -79.35% | |
71 Outperform | $10.97B | 10.41 | 24.02% | 5.70% | 18.54% | 65.80% | |
71 Outperform | $0.00 | 5.31 | 28.17% | 2.25% | -35.65% | 70.23% | |
69 Neutral | $14.17B | 11.00 | 22.07% | 7.49% | -17.02% | -10.73% | |
67 Neutral | $17.01B | 11.65 | 9.80% | 3.95% | 10.59% | 1.50% |
* Financial Sector Average
Performance Comparison
CIB
Bancolombia
44.94
18.57
70.42%
BCH
Banco De Chile
28.08
6.11
27.81%
BMA
Banco Macro SA
72.84
27.31
59.98%
BSAC
Banco Santander Chile
23.32
5.01
27.36%
BAP
Credicorp
242.00
90.55
59.79%
GGAL
Grupo Financiero Galicia SA
50.95
23.09
82.88%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.