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Grupo Cibest (CIB)
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Grupo Cibest (CIB) AI Stock Analysis

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CIB

Grupo Cibest

(NYSE:CIB)

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Outperform 78 (OpenAI - 4o)
Rating:78Outperform
Price Target:
$62.00
▲(9.29% Upside)
Bancolombia's strong financial performance and positive earnings call are the primary drivers of its high score. The stock's technical indicators support a bullish outlook, while its attractive valuation further enhances its appeal. However, cash flow challenges and fiscal issues in Colombia present risks that need monitoring.
Positive Factors
Digital Banking Growth
Nequi's remarkable growth in loans and deposits highlights the company's successful digital banking strategy, enhancing customer reach and operational efficiency, which is crucial for long-term competitiveness in the financial sector.
Asset Quality Improvement
Improved asset quality with a stable cost of risk and reduced nonperforming loans enhances financial stability and reduces future credit risk, supporting sustainable profitability.
Strategic Market Expansion
Listing on the Singapore Exchange reflects strategic market expansion efforts, potentially increasing access to Asian markets and diversifying funding sources, which can enhance long-term growth prospects.
Negative Factors
Fiscal Challenges in Colombia
The high fiscal deficit in Colombia poses macroeconomic risks that could impact Bancolombia's operating environment, potentially affecting loan demand and financial stability.
Weak Commercial Loan Demand
Weak demand for commercial loans indicates challenges in stimulating business lending growth, which could constrain revenue expansion in the corporate banking segment.
Cash Flow Challenges
Negative free cash flow indicates issues in cash management and conversion of profits into cash, which could limit financial flexibility and investment capacity if not addressed.

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

Grupo Cibest Business Overview & Revenue Model

Company DescriptionGrupo Cibest SA operates as an investment holding company. The company is headquartered in Medellin, Columbia.
How the Company Makes MoneyBancolombia generates revenue primarily through interest income from loans, which constitutes a significant portion of its earnings. The bank lends money to consumers and businesses, charging interest on these loans, which provides a steady income stream. Additionally, Bancolombia earns fees from various services, including account maintenance, transaction fees, and commissions from investment and insurance products. The company also benefits from wealth management services, where it charges fees for managing investments and providing financial advisory services. Significant partnerships with fintech companies and collaborations in digital banking initiatives enhance its service offerings and customer reach, contributing to its overall revenue growth.

Grupo Cibest Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
Grupo Cibest reported strong financial results, including robust growth in net income and asset quality improvements. The digital bank Nequi showed impressive growth, contributing significantly to the group's overall performance. However, challenges remain with Colombia's fiscal deficit and weak demand in commercial loans. Despite these issues, the financial outlook remains positive due to strategic measures like the share repurchase program and ongoing efficiency improvements.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Grupo Cibest reported a return on equity of 17.5% in Q2 2025, driven by an improved net interest margin of 6.6% and reduced provision expenses. Net income increased by 3% quarter-over-quarter and 24% year-over-year.
Nequi's Remarkable Growth
Nequi, the digital bank, reported loans totaling COP 1.1 trillion, reflecting a substantial 4.7-fold increase over the previous year. Deposits grew over 77%, reaching nearly 6 trillion, with a total income increase of 90%.
Asset Quality Improvement
The cost of risk was maintained at 1.6%, with declining nonperforming loans ratios, highlighting ongoing enhancement of asset quality.
Successful Share Repurchase Program
Grupo Cibest launched a share repurchase program with the goal to buy up to COP 1.3 trillion by June 2026. As of July 31, 5.2% of total shares had been repurchased.
Positive Macroeconomic Indicators
The Colombian economy grew by 2.9% during the first half of 2025, with household consumption and investment recovery contributing to economic momentum.
Negative Updates
Fiscal Challenges in Colombia
Colombia's fiscal deficit is projected to exceed 7% in 2025, leading to recent downgrades by credit rating agencies Moody's and S&P.
Weak Commercial Loan Demand
The commercial loan portfolio remained almost flat over the quarter due to weak demand, with a modest 4.4% growth over the year.
Central Bank's Cautious Stance
Despite inflation falling to 4.8% year-over-year in June, the Central Bank has kept the policy rate unchanged at 9.25%, reflecting ongoing concerns about inflation risks.
Company Guidance
In the second quarter of 2025, Grupo Cibest provided updated guidance reflecting strong financial performance and strategic realignment. The company anticipates loan growth of approximately 5.4%, with consumer and mortgage loans projected to grow by 7% and 7.5%, respectively. The net interest margin is expected to stabilize around 6.3%, influenced by interest rate trends and a strategic shift towards higher-yielding consumer loans. The cost of risk is forecasted to range between 1.6% and 1.8%, highlighting improvements in asset quality. Consequently, the company revised its return on equity (ROE) guidance to roughly 16%, supported by efficient capital allocation and operational enhancements. Additionally, Nequi, the digital bank, is on track to achieve breakeven by early 2026, with significant growth in loans and deposits contributing to operational efficiency. These metrics underscore Grupo Cibest's commitment to sustainable growth and value creation for stakeholders.

Grupo Cibest 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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue32.39T22.18T20.88T20.39T15.06T8.30T
Gross Profit23.46T22.18T20.88T20.45T14.92T8.30T
EBITDA10.24T9.77T10.27T10.69T6.84T0.00
Net Income6.69T6.27T6.12T6.78T4.09T275.99B
Balance Sheet
Total Assets10.00T>10.00T>10.00T>10.00T>10.00T>10.00T>
Cash, Cash Equivalents and Short-Term Investments24.24T30.06T36.13T28.77T24.54T0.00
Total Debt27.40T29.91T32.56T41.17T31.46T32.15T
Total Liabilities10.00T>10.00T>10.00T>10.00T>10.00T>10.00T>
Stockholders Equity41.29T43.54T38.09T39.09T32.23T26.55T
Cash Flow
Free Cash Flow-2.95T-19.94T16.74T3.03T3.91T9.70T
Operating Cash Flow-945.36B-17.89T19.15T6.56T6.10T11.23T
Investing Cash Flow-1.60T-559.20B-159.69B-4.65T-650.49B-7.52T
Financing Cash Flow3.84T9.09T11.59T853.44B-6.81T-4.92T

Grupo Cibest Technical Analysis

Technical Analysis Sentiment
Positive
Last Price56.73
Price Trends
50DMA
52.37
Positive
100DMA
48.60
Positive
200DMA
43.37
Positive
Market Momentum
MACD
1.23
Negative
RSI
64.08
Neutral
STOCH
72.82
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 56.73 is above the 20-day moving average (MA) of 54.16, above the 50-day MA of 52.37, and above the 200-day MA of 43.37, indicating a bullish trend. The MACD of 1.23 indicates Negative momentum. The RSI at 64.08 is Neutral, neither overbought nor oversold. The STOCH value of 72.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CIB.

Grupo Cibest Risk Analysis

Grupo Cibest disclosed 38 risk factors in its most recent earnings report. Grupo Cibest 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

Grupo Cibest Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$14.54B16.0516.25%11.50%-8.82%4.87%
$17.41B13.4822.07%6.17%-13.16%-8.10%
$20.71B12.2818.54%5.43%5.16%27.77%
$8.35B7.3822.42%2.00%-42.92%-21.46%
$13.31B11.8724.13%4.69%12.43%56.30%
$18.00B11.429.92%3.81%9.73%1.22%
$5.33B13.2710.91%1.82%-57.78%-67.92%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CIB
Grupo Cibest
56.73
28.23
99.05%
BCH
Banco De Chile
34.22
11.87
53.11%
BMA
Banco Macro SA
82.58
6.54
8.60%
BSAC
Banco Santander Chile
28.22
9.34
49.47%
BAP
Credicorp
260.34
82.88
46.70%
GGAL
Grupo Financiero Galicia SA
52.40
0.98
1.91%

Grupo Cibest Corporate Events

Bancolombia Releases Q2 2025 Financial Report
Aug 15, 2025

Bancolombia S.A. released its quarterly report for the second quarter of 2025, fulfilling a legal reporting requirement in Colombia. The report, which covers the fiscal quarter ended June 30, 2025, highlights the company’s financial performance and includes details on its current securities and international bonds. The report is prepared in accordance with Colombian law and not international standards, indicating a focus on local regulatory compliance. This announcement may impact stakeholders by providing insights into the company’s financial health and market positioning.

Bancolombia Delists Bonds from NYSE, Moves to Singapore Exchange
Aug 14, 2025

On August 14, 2025, Bancolombia S.A. announced the voluntary delisting of its 4.875% Subordinated Notes due 2027 and 8.625% Subordinated Notes due 2034 from the New York Stock Exchange. This strategic move, authorized by the company’s Board of Directors, aims to list these notes on the Singapore Exchange, with trading expected to commence on August 15, 2025. The decision reflects Bancolombia’s efforts to optimize its financial operations and enhance its market presence in Asia, potentially impacting stakeholders by aligning the company’s securities with a more suitable exchange.

Bancolombia Calls Extraordinary Shareholders’ Meeting Amid Corporate Restructuring
Jul 31, 2025

Bancolombia S.A. announced an Extraordinary General Shareholders’ Meeting scheduled for August 27, 2025, in Medellín. The agenda includes significant proposals such as the cancellation of the company’s shares from the National Registry of Securities and Issuers and the Colombian Stock Exchange, as well as amendments to corporate bylaws and board election rules. This meeting is part of Bancolombia’s ongoing corporate restructuring, following the creation of Grupo Cibest S.A. as the parent company. Shareholders are reminded of their transition to Grupo Cibest, maintaining their shares and ownership percentages.

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.Date of analysis: Oct 23, 2025