tiprankstipranks
Trending News
More News >
Bancolombia (CIB)
NYSE:CIB

Bancolombia (CIB) AI Stock Analysis

Compare
328 Followers

Top Page

CI

Bancolombia

(NYSE:CIB)

Rating:77Outperform
Price Target:
Bancolombia demonstrates strong financial performance with robust revenue and profit growth, a positive technical outlook, and attractive valuation metrics. The low P/E ratio and high dividend yield are particularly appealing. Despite some challenges such as cash flow issues and sector-specific underperformance, the positive macroeconomic environment and strategic initiatives suggest a favorable outlook.
Positive Factors
Earnings Growth
El Salvador’s earnings rose 54% supported by strong year-over-year core revenue growth.
Macroeconomic Recovery
Bancolombia is well positioned to benefit from a nascent macroeconomic recovery.
Price Objective
The price objective was raised by 16% to reflect new earnings estimates and a higher sustainable return on average equity.
Negative Factors
Earnings Decline
Panama’s earnings significantly declined due to weaker core revenue generation and higher operating expenses.
Fiscal Challenges
A challenging fiscal outlook for the country, while recent polls are showing different trends compared to early this year.
Interest Rate Pressure
Bancolombia’s earnings are seen as being limited due to NIM pressure from lower rates.

Bancolombia (CIB) vs. SPDR S&P 500 ETF (SPY)

Bancolombia Business Overview & Revenue Model

Company DescriptionBancolombia S.A. (CIB) is a leading financial institution in Latin America, primarily operating in Colombia, Panama, El Salvador, and Guatemala. It offers a comprehensive range of banking products and services, including personal and commercial banking, investment banking, asset management, and insurance. With a focus on innovation and customer service, Bancolombia serves individuals, SMEs, and large corporations, providing solutions tailored to meet the diverse financial needs of its clients.
How the Company Makes MoneyBancolombia generates revenue through a diversified business model that includes interest income, fees, and commissions. The bank earns interest income primarily from lending activities such as personal loans, mortgages, and commercial loans. Additionally, Bancolombia benefits from fees and commissions on various services, including credit card transactions, asset management, insurance products, and financial advisory services. The bank also engages in treasury operations, trading, and investment activities to optimize its financial performance. Strategic partnerships and collaborations with fintech companies and other financial institutions further enhance its revenue streams by expanding service offerings and improving operational efficiency.

Bancolombia Earnings Call Summary

Earnings Call Date:May 05, 2025
(Q1-2025)
|
% Change Since: 3.76%|
Next Earnings Date:Aug 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
75
Positive
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.
Balance Sheet
70
Positive
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.
Cash Flow
65
Positive
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
22.18T20.88T24.21T17.36T15.72T
Gross Profit
22.18T47.08T19.31T17.36T15.72T
EBIT
11.01T10.27T17.02T5.86T269.41B
EBITDA
0.0010.27T0.000.000.00
Net Income Common Stockholders
6.27T6.12T6.78T4.09T275.99B
Balance SheetCash, Cash Equivalents and Short-Term Investments
19.62T11.65T24.72T23.15T20.19T
Total Assets
10.00T>10.00T>10.00T>10.00T>10.00T>
Total Debt
29.91T32.09T41.17T31.46T32.15T
Net Debt
2.79T127.11B16.45T8.32T11.96T
Total Liabilities
10.00T>10.00T>10.00T>10.00T>10.00T>
Stockholders Equity
43.54T38.09T39.09T32.23T26.55T
Cash FlowFree Cash Flow
-19.94T16.74T3.03T3.91T9.70T
Operating Cash Flow
-17.89T19.15T6.56T6.10T11.23T
Investing Cash Flow
-559.20B-159.69B-4.65T-650.49B-7.52T
Financing Cash Flow
9.09T11.59T853.44B-6.81T-4.92T

Bancolombia Technical Analysis

Technical Analysis Sentiment
Positive
Last Price41.99
Price Trends
50DMA
40.72
Positive
100DMA
38.54
Positive
200DMA
33.41
Positive
Market Momentum
MACD
0.66
Positive
RSI
50.89
Neutral
STOCH
50.59
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 41.99 is below the 20-day moving average (MA) of 42.14, above the 50-day MA of 40.72, and above the 200-day MA of 33.41, indicating a neutral trend. The MACD of 0.66 indicates Positive momentum. The RSI at 50.89 is Neutral, neither overbought nor oversold. The STOCH value of 50.59 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
CICIB
77
Outperform
$11.01B12.6615.99%14.39%-0.15%8.78%
BCBCH
77
Outperform
$15.42B11.7523.88%5.16%-16.96%-10.73%
BMBMA
74
Outperform
$4.97B1,116.790.11%10.59%-46.30%-79.35%
BABAP
74
Outperform
$17.30B11.2016.35%4.98%5.84%12.67%
73
Outperform
$11.71B10.9924.02%3.99%-22.63%32.31%
71
Outperform
$8.97B5.9628.17%4.28%-35.65%70.23%
64
Neutral
$12.86B9.797.78%16985.65%12.28%-7.82%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CIB
Bancolombia
41.99
13.58
47.80%
BCH
Banco De Chile
30.19
8.01
36.11%
BMA
Banco Macro SA
75.83
23.77
45.66%
BSAC
Banco Santander Chile
24.46
6.68
37.57%
BAP
Credicorp
213.40
66.48
45.25%
GGAL
Grupo Financiero Galicia SA
54.02
24.06
80.31%
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.