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Bancolombia (CIB)
NYSE:CIB
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Bancolombia
(NYSE:CIB)
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Rating:81Outperform
Price Target:
$57.00
â–²(10.21% Upside)
Grupo Cibest's strong financial performance and strategic initiatives, such as the growth of Nequi and the share repurchase program, are significant strengths. The technical indicators show bullish momentum, although caution is advised due to overbought conditions. The stock's attractive valuation, with a high dividend yield, further supports a positive outlook. However, cash flow challenges and fiscal issues in Colombia present risks that need monitoring.
Positive Factors
Digital Banking Expansion
Nequi's significant growth in loans and deposits highlights Bancolombia's successful digital banking strategy, enhancing its competitive edge and market reach in the fintech space.
Asset Quality Improvement
Improved asset quality with reduced nonperforming loans strengthens Bancolombia's financial stability, ensuring better risk management and long-term profitability.
Strong Financial Performance
High return on equity and improved net interest margin reflect Bancolombia's effective capital utilization and operational efficiency, supporting sustainable growth.
Negative Factors
Fiscal Challenges in Colombia
Colombia's fiscal deficit poses macroeconomic risks that could impact Bancolombia's operating environment and financial performance in the medium term.
Cash Flow Challenges
Negative free cash flow indicates potential liquidity issues, necessitating improved cash management strategies to ensure long-term financial health.
Weak Commercial Loan Demand
Stagnant commercial loan demand could limit Bancolombia's revenue growth potential, affecting its ability to capitalize on business lending opportunities.
Bancolombia (CIB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.75B
Dividend Yield12.64%
Average Volume (3M)357.22K
Price to Earnings (P/E)14.7
Beta (1Y)0.45
Revenue Growth-8.82%
EPS Growth4.87%
CountryUS
Employees34,182
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.85
Shares Outstanding113,030,600
10 Day Avg. Volume400,113
30 Day Avg. Volume357,220
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$57.00Price Target Upside10.21% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering1
Bancolombia 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.
Bancolombia 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.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.59T | 22.18T | 20.88T | 15.54T | 17.36T | 15.72T |
| Gross Profit | 22.58T | 22.18T | 20.88T | 19.31T | 14.92T | 15.72T |
| EBITDA | 9.59T | 9.77T | 10.27T | 10.69T | 6.84T | 0.00 |
| Net Income | 6.34T | 6.27T | 6.12T | 6.78T | 4.09T | 275.99B |
Balance Sheet | ||||||
| Total Assets | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Cash, Cash Equivalents and Short-Term Investments | 30.20T | 30.06T | 36.13T | 28.77T | 24.54T | 0.00 |
| Total Debt | 25.90T | 29.91T | 32.09T | 41.17T | 31.46T | 32.15T |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Stockholders Equity | 40.63T | 43.54T | 38.09T | 39.09T | 32.23T | 26.55T |
Cash Flow | ||||||
| Free Cash Flow | -10.16T | -19.94T | 16.74T | 3.03T | 3.91T | 9.70T |
| Operating Cash Flow | -8.09T | -17.89T | 19.15T | 6.56T | 6.10T | 11.23T |
| Investing Cash Flow | -821.04B | -559.20B | -159.69B | -4.65T | -650.49B | -7.52T |
| Financing Cash Flow | 9.32T | 9.09T | 11.59T | 853.44B | -6.81T | -4.92T |
Bancolombia Technical Analysis
Positive
51.72
Price Trends
47.72
Positive
45.13
Positive
39.77
Positive
Market Momentum
1.32
Positive
60.93
Neutral
52.25
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 51.72 is above the 20-day moving average (MA) of 50.83, above the 50-day MA of 47.72, and above the 200-day MA of 39.77, indicating a bullish trend. The MACD of 1.32 indicates Positive momentum. The RSI at 60.93 is Neutral, neither overbought nor oversold. The STOCH value of 52.25 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $13.75B | 14.65 | 16.25% | 12.64% | -8.82% | 4.87% | |
76 Outperform | 12.44B | 10.95 | 16.23% | 5.11% | 12.43% | 56.30% | |
73 Outperform | 15.24B | 11.78 | 19.19% | 7.03% | -13.16% | -8.10% | |
72 Outperform | 21.13B | 12.53 | 16.02% | 5.24% | 5.16% | 27.77% | |
71 Outperform | 4.72B | 4.11 | 0.00% | 1.96% | -42.92% | -21.46% | |
63 Neutral | 2.76B | 6.82 | 8.04% | 1.80% | -57.78% | -67.92% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
CIB
Bancolombia
51.72
24.49
89.94%
BCH
Banco De Chile
30.12
6.87
29.55%
BMA
Banco Macro SA
43.85
-26.23
-37.43%
BSAC
Banco Santander Chile
26.13
6.71
34.55%
BAP
Credicorp
270.79
102.61
61.01%
GGAL
Grupo Financiero Galicia SA
30.25
-15.36
-33.68%
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.