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Bancolombia (CIB)
NYSE:CIB
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Bancolombia
(NYSE:CIB)
77Outperform
Positive Factors
Macroeconomic Positioning
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
Core Revenue Decline
Panama’s earnings significantly declined due to weaker core revenue generation and higher operating expenses.
Earnings Limitation
Bancolombia’s earnings are seen as being limited due to NIM pressure from lower rates.
Bancolombia (CIB) vs. S&P 500 (SPY)
Market Cap
$10.66B
Dividend Yield15.18%
Average Volume (3M)520.36K
Price to Earnings (P/E)11.8
Beta (1Y)0.52
Revenue Growth-0.15%
EPS Growth8.78%
CountryUS
Employees34,114
SectorFinancial
Sector Strength87
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.42
Shares Outstanding113,030,600
10 Day Avg. Volume331,305
30 Day Avg. Volume520,359
Financial Highlights & Ratios
PEG Ratio1.34
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
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
$36.00Price Target Upside-10.71% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
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 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 | 24.21T | 17.36T | 15.72T | Gross Profit |
| 22.18T | 47.08T | 19.31T | 17.36T | 15.72T | EBIT |
| 11.01T | 10.27T | 17.02T | 5.86T | 269.41B | EBITDA |
| 0.00 | 10.27T | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 6.27T | 6.12T | 6.78T | 4.09T | 275.99B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 19.62T | 11.65T | 24.72T | 23.15T | 20.19T | Total Assets |
| 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | Total Debt |
| 19.20T | 32.09T | 41.17T | 31.46T | 32.15T | Net Debt |
| -419.94B | 127.11B | 16.45T | 8.32T | 11.96T | 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
40.32
Price Trends
38.85
Positive
35.02
Positive
31.59
Positive
Market Momentum
0.68
Negative
54.57
Neutral
48.88
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 40.32 is above the 20-day moving average (MA) of 39.35, above the 50-day MA of 38.85, and above the 200-day MA of 31.59, indicating a bullish trend. The MACD of 0.68 indicates Negative momentum. The RSI at 54.57 is Neutral, neither overbought nor oversold. The STOCH value of 48.88 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $10.66B | 11.79 | 15.62% | 15.18% | -0.15% | 8.78% | |
77 Outperform | $5.72B | 15.99 | 9.05% | 8.96% | -46.30% | -79.35% | |
74 Outperform | $16.08B | 10.96 | 16.36% | 4.63% | 5.84% | 12.67% | |
73 Outperform | $11.47B | 12.70 | 16.05% | 2.35% | -22.63% | 32.31% | |
73 Outperform | $14.81B | 11.41 | 21.96% | 5.22% | -16.96% | -10.73% | |
71 Outperform | $9.88B | 5.45 | 38.13% | 4.08% | -35.65% | 70.23% | |
63 Neutral | $12.46B | 9.55 | 8.14% | 17103.96% | 12.70% | -4.66% |
* Financial Sector Average
Performance Comparison
CIB
Bancolombia
40.32
12.40
44.41%
BCH
Banco De Chile
29.52
8.41
39.84%
BMA
Banco Macro SA
88.52
37.29
72.79%
BSAC
Banco Santander Chile
24.09
6.74
38.85%
BAP
Credicorp
202.19
48.83
31.84%
GGAL
Grupo Financiero Galicia SA
60.40
30.81
104.12%
Bancolombia Earnings Call Summary
Earnings Call Date:Feb 19, 2025
(Q4-2024)
| % Change Since: 8.68%|
Next Earnings Date:May 05, 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.Q4-2024 Updates
Positive Updates
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.
Negative Updates
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.