Grupo Cibest NYSE: CIB reported first-quarter 2026 net income of COP 1.5 trillion, down 16% year over year, as management pointed primarily to the impact of a one-off wealth tax accrual. Chief Executive Officer Juan Carlos Mora said results “net of the one-off wealth tax demonstrates the strength and adaptability of our business model across economic and credit cycles,” adding that higher net interest margin and net fee income helped offset part of the tax-related decline.
The group posted a consolidated return on equity (ROE) of 15% for the quarter. Management also highlighted ongoing strategic initiatives, including progress toward spinning off Nequi into a separate entity and the planned sale of Banistmo, which is expected to close in the second quarter.
Macroeconomic backdrop: slower growth, higher inflation, tighter policy
Mora described a challenging environment in Colombia marked by fiscal deterioration, renewed inflation pressures, uncertainty around “economic emergency measures,” and volatility tied to Middle East conflict escalation. Still, he said the Colombian economy continued to expand at a moderate pace, supported by private consumption, labor market strength, and public spending, with GDP estimated to have grown 2.7% quarter-on-quarter.
Chief Economist Laura Clavijo revised the company’s 2026 Colombia GDP growth outlook to 2.9%, down from 3.2%, citing “early signs of a soft start to the year.” She also said inflation had rebounded following a significant minimum wage increase, with March headline inflation at 5.5% and core inflation at 5.8%. Clavijo said the firm expects inflation to reach 6.4% this year, and noted the central bank has increased its policy rate by 200 basis points so far, before unanimously holding rates at 11.25% at the end of April. Clavijo said the company’s end-of-year policy rate forecast is 12.75%.
On fiscal risk, Clavijo projected the deficit will exceed 7% of GDP and said S&P’s downgrade of Colombia’s sovereign rating to BB- “underscores these challenges.”
Loans and deposits: growth continues, funding mix remains favorable
Chief Strategy and Financial Officer Mauricio Botero said the gross loan portfolio increased 2.1% quarter over quarter (2.7% net of FX) and expanded 9.6% year over year net of FX. Commercial loans rose 2.4%, driven mainly by corporate clients, while mortgages grew 2.5% and consumer loans increased 1% as the group maintained what Botero called a “more prudent risk posture” in Colombia.
Botero also highlighted strong offshore momentum, stating that Bancolombia Panama’s loan book expanded 9.7% over the quarter, though the share of U.S. dollar loans dipped to 20% due to faster peso growth and currency appreciation.
Deposits increased 2.8% in the quarter (3.4% net of FX) and 10.4% year over year (14.3% net of FX), continuing to outpace loan growth. Time deposits led quarterly growth, rising 6.5% as customers sought higher yields, while savings accounts rose 2% in the quarter but were up 16% year over year. In Colombia, online time deposits grew 7.7% and reached 51% of total time deposits, which Botero said benefits funding through “lower operating costs and better customer experience.”
The group’s funding mix remained anchored by sight deposits, which accounted for 58% of total funding. The cost of deposits increased by 6 basis points during the quarter, which management said reflected higher savings account remuneration, but remained competitive.
Profitability: NIM expanded, fees rose, wealth tax pressured expenses
Botero said net interest income increased 7% during the quarter, with net interest margin (NIM) expanding 20 basis points from 6.8% to 7.0%. Lending NIM increased to 7.8% from 7.6%, which he attributed to higher balances and yields in Colombia given the group’s asset-sensitive profile. Investment NIM increased to 1.8% from 1.5% amid higher yields in the debt portfolio and money market and derivative strategies in volatile markets.
Fee income increased 11.8%, while fee expenses declined 9.3% due primarily to a January 2026 reclassification of some customer service and collections-related expenses into other administrative and general expenses. Botero said net fee income grew 30% year over year; excluding the reclassification, net fee income would have increased 15.3%.
Operating expenses rose 24% year over year, driven mainly by the COP 374 billion wealth tax accrual. Botero said that excluding the wealth tax, expense growth would have been 12.9%, and after also adjusting for the collections and customer service reclassification, expense growth would have been 8.7%. The consolidated cost-to-income ratio rose to 54.5%, but would have been 49.5% excluding the wealth tax, which management said was in line with guidance.
Credit quality and provisioning: macro overlays lifted cost of risk
Net provision expense totaled COP 1.2 trillion, down 16% sequentially, as strong loan performance offset a COP 248 billion charge tied to a weaker macro outlook for Colombia, including higher inflation, higher interest rates, and lower growth. Quarterly annualized cost of risk was 1.9%, above the company’s full-year guidance range.
Management said it maintained its full-year cost of risk guidance because it does not expect additional macro-input update charges in coming quarters. During Q&A, Mora said the company is “not expecting a big additional deterioration,” and said the full-year cost of risk is expected to be “closer to 1.8%,” the upper end of the 1.6%–1.8% range.
Botero added that consumer provisions increased at Bancolombia due to loan growth and seasonality and at Banco Agrícola due to lower collections, but said neither was indicative of “a material deterioration in credit quality.”
Capital actions, Banistmo sale, and guidance updates
Mora said the shareholder meeting approved an ordinary dividend distribution of COP 4.3 trillion and a new 2026 share buyback program authorizing repurchases of up to COP 1.35 trillion over up to three years, across all share classes. As of April 21, management said 51% of the prior 2025 program had been executed, totaling 12.7 million shares, or 1.3% of shares outstanding.
On capital metrics, Botero said Grupo Cibest shareholders’ equity fell 8.5% quarter over quarter, mainly due to the dividend payout. Bancolombia’s standalone total solvency ratio was 13.1% with a Common Equity Tier 1 ratio of 11.1% as of March, with the quarterly decline attributed to a reduction in Tier 1 after a COP 2.5 trillion payment to Grupo Cibest. Banco Agrícola and BAM reported capital ratios of 13.6% and 12.5%, respectively, which management said were well above minimum requirements.
Regarding Banistmo, Mora said the sale is progressing for a second-quarter close, and proceeds are planned for intragroup capital instruments and digital platform investments. In Q&A, Botero outlined planned capital deployment for 2026, including the COP 1.35 trillion buyback, COP 500 billion investment in Nequi, a COP 1 trillion additional tier 1 (AT1) instrument to be issued by Bancolombia and subscribed by Grupo Cibest, and nearly COP 1 trillion in subordinated debt instruments from Bancolombia Panama into BAM and Banco Agrícola. He said the company will consider the possibility of an extraordinary dividend after the sale is executed.
Management also discussed a tax-related accounting item: Botero said the company had taken a COP 150 billion provision in the fourth quarter tied to deferred taxes recognizing an extra tax rate, and that after a court rejection of the extra rate in April, the provision will be reversed in the second quarter.
For guidance, Mora said the group maintained 7%–8% loan growth expectations, raised NIM guidance to 7.0%–7.2%, and kept the cost of risk range at 1.6%–1.8% and efficiency target at 49%. He said ROE guidance for 2026 increased to 19.5%–20%.
In response to questions on elections and longer-term profitability, Mora said Colombia’s first-round presidential election is May 31, with a runoff in mid-June if no candidate exceeds 50%. He said polls show a left-leaning candidate leading with 34%–42%, while Abelardo de la Espriella and Paloma Valencia were identified as close contenders on the right. On sustainable ROE, Mora said management expects “between 18% and 20%,” while Botero said it could remain toward the upper end in 2027 given the interest rate backdrop, potentially easing toward the lower end by 2028 as margins normalize.
On digital, management said Nequi’s spin-off is progressing, with Mora noting it remains within Bancolombia’s financials until the legal separation expected to be concluded by the third quarter. Botero provided administrative results, stating Nequi generated about $7 million in net income in the first quarter and could be around $30 million for the full year. He said the company expects to disclose more complete standalone numbers once the separation occurs.
About Grupo Cibest NYSE: CIB
Bancolombia SA NYSE: CIB is a leading financial institution in Colombia, offering a comprehensive suite of banking and financial services. As one of the largest universal banks in the country, the company provides retail and commercial banking, corporate and investment banking, treasury services, and wealth management solutions. Through its extensive branch network and digital platforms, Bancolombia serves individual clients, small and medium enterprises, and large corporations, focusing on convenience, innovation and customer experience.
In addition to traditional banking, Bancolombia's product portfolio includes insurance, pension fund management, leasing, factoring, brokerage and asset management.
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