CIB

**Operator:**  
Good morning, ladies and gentlemen, and welcome to Grupo Cibest Bancolombia First Quarter 2026 Earnings Conference Call. My name is Paul, and I will be your operator for today's call. [Operator Instructions] Please note that this conference is being recorded. Please note that this conference call will include forward-looking statements, including statements related to our future performance, capital position, credit-related expenses and credit losses. All forward-looking statements whether made in this conference call and future filings and press releases or verbally, address matters that involve risks and uncertainties. Consequently, there are factors that could cause actual results to differ materially from those indicated in such statements, including changes in general economic and business conditions, changes in currency exchange rates and interest rates. Introduction of competing products by other companies, lack of acceptance of new products or services by our targeted clients, changes in business strategy and various other factors that we describe in our reports filed with the SEC. With us today is Mr. Juan Carlos Mora, Chief Executive Officer; Mr. Mauricio Botero Wolff, Chief Strategy and Financial Officer; Mr. Rodrigo Prieto, Chief Risk Officer; Mrs. Catalina Tobon, Investor Relations and Capital Markets Director; and Mrs. Laura Clavijo, Chief Economist. I will now turn the call over to Mr. Juan Carlos Mora, Chief Executive Officer. Mr. Juan Carlos, you may begin.

**Juan Uribe:**  
Good morning, and welcome to Grupo Cibest's First Quarter Conference Call. Please turn to Slide 2. As anticipated, the start of the year in Colombia was characterized by continued deterioration in fiscal condition, inflation pressures, increased uncertainties surrounding the implementation of economic emergency measures, and the escalation of the Middle East conflict, which has added volatility to an already stressed macroeconomic environment. Despite the complex backdrop, the Colombian economy continues to expand at a moderate pace, supported by robust private consumption and a stronger-than-expected labor market and sustained public spending. As a result, GDP is estimated to have grown by 2.7% quarter-on-quarter. In this challenging context, we are pleased to report our first quarter results, which net of the one-off wealth tax demonstrates the strength and adaptability of our business model across economic and credit cycles. Net income was COP 1.5 trillion, down 16% from last year due mainly to the wealth tax. This drop was partially offset by higher net interest margin and net fee income. Digital businesses continue to grow their share of total fee income. Deposits kept outpacing loan growth during the quarter, further consolidating our competitive advantage in accessing a stable and low-cost funding. The quarterly annualized cost of risk stood at 1.9%, mainly due to higher macro risk provisions while asset quality remained solid across segments and geographies, reflecting good loan performance. All in all, ROE came at 15%. Nequi's spinoff from Bancolombia is progressing well, moving toward an independent license to boost its value proposition and profitability. The Banistmo sale is advancing as planned for a second quarter close with proceeds allocated to intragroup capital instruments and digital platform investments to improve efficiency and support growth. These actions reflect our clear commitment to disciplined capital allocation and long-term value creation for our shareholders. Please go to Slide 3. In line with our dedication to increasing shareholder value, we are delighted that the shareholders' meeting approved both the ordinary dividend distribution of COP 4.3 trillion and the share buyback program set for 2026. The new program authorizes the repurchase of up to COP 1.35 trillion and may be executed across all 3 shares classes over a period of up to 3 years and replaces the former 2025 program, providing greater flexibility and continuity. As of April 21, 51% of the 2025 program amount was executed, totaling 12.7 million shares, equivalent to 1.3% of our total shares outstanding. As a matter of fact, the performance of the 3 classes of shares during the execution phase of the 2025 program was outstanding. The ADR rose 66%, followed by the common with 57% and the preferred with 47%. The decision to renew the program responds to 2 key objectives: to continue delivering value to our shareholders and to actively manage capital at the holding level, a flexibility enabled by Grupo Cibest's corporate structure. Execution under the new program will continue to be dependent to market conditions. Please go to Slide 4. Regarding our regional presence, I want to highlight how BAM remains a key strategic asset for Grupo Cibest. Given its ability to support scalable growth, improved capital efficiency and expand the group's regional banking footprint. Our strategy in Guatemala is centered on optimizing the balance sheet and business mix by reinforcing its value proposition to corporate and retail segments and increasing its cross-border loan book that currently represents 20% of its corporate loans. BAM is actively implementing Grupo Cibest's digital ecosystem, including platforms such as Nequi, Wompi, and Wenia, which enables innovation in payments, acquiring and remittances. Overall, BAM plays a relevant role within Grupo Cibest's long-term strategy, contributing to diversification and growth in a country with a constructive macroeconomic environment and stable financial system. I will now hand over to Laura Clavijo, Chief Economist, for a summary of the macroeconomic landscape. Laura?

**Laura Clavijo:**  
Thank you, Juan Carlos. If you could please turn to Slide 6. Colombia's economic outlook for 2026 points to a scenario of moderate, but increasingly fragile growth, shaped by both domestic constraints and a challenging external environment. We expect GDP growth of 2.9% this year, a downward revision from earlier expectations of 3.2%, reflecting early signs of a soft start to the year. While the economy continues to expand, the composition of growth raises concerns about its sustainability and resilience. Domestic demand remains the primary engine of activity as well as public spending. Private consumption is expected to sustain momentum supported by gradual improvements in real incomes, remittance flows and still resilient labor market conditions. However, this growth mix is not without risk. Investment remains subdued, reflecting high financing costs, weakened business confidence and elevated uncertainty amidst the electoral race. Externally, Colombia faces a more complex backdrop, driving global trade tensions and persistent geopolitical risks are weighing on export dynamics and capital flows. Commodity prices, while still relatively supportive, are subject to heightened volatility, adding another layer of uncertainty for a resource-dependent economy. At the same time, tighter global financial conditions continue to constrain external financing. The recent rebound in inflation following the significant increase in the minimum wage has pressured short- and medium-term inflation expectations. March headline inflation rose to 5.5% and core inflation reached 5.8% on account of a significant surge in services and food prices. We now expect inflation to reach 6.4% this year. Consequently, Central Bank began a tightening cycle and has increased its policy rate by 200 basis points thus far. The monetary policy landscape has become increasingly complex in recent months, with tensions surmounting between the Minister of Finance and the Board on account of these rate hikes. Despite the political backdrop, the Central Bank Board met again at the end of April and unanimously decided to hold rate steady at 11.25%, arguing the need to further assess inflation dynamics and external shocks. Our reading is that this pause will help ease tensions during the final months of this administration, but further tightening will be needed to rein in inflation. Hence, our end-of-year policy rate forecast of 12.75%. Finally, fiscal dynamics represent a central source of vulnerability. The fiscal deficit is projected to exceed 7% of GDP, reflecting both structural spending pressures and limited revenue flexibility. This trajectory raises concerns about debt sustainability and have already translated into higher sovereign risk premium. S&P's recent downgrade of Colombia's sovereign rating to BB- underscores these challenges, signaling reduced investor confidence and increasing the cost of borrowing for both public and private sectors. Looking ahead, the medium-term outlook remains uncertain. The interplay between fiscal consolidation needs, monetary tightening and external headwinds creates a complex policy environment. This environment calls for prudent risk management, close monitoring of credit quality and a strategic focus on sectors and clients with stronger resilience. If you could please turn to Slide 7. Economic conditions in Central America remained resilient, supported by country-specific drivers. In El Salvador, growth accelerated in 2025 on the back of a construction boom and strong domestic demand. However, momentum is expected to moderate in 2026 as remittance growth flows and global uncertainties intensify. Guatemala continues to benefit from solid performance in construction and financial services, trade and real estate, although softer remittance flows and inflationary pressures could weigh on household demand. Finally, Panama stands out regionally with GDP growth projected at 4%, supported by its role as a key logistics and services hub underpinned by canal-related activity. Now please let me turn the presentation to Mauricio, who will present Cibest's quarterly performance.

**Mauricio Botero Wolff:**  
Thank you, Laura. Please proceed to Slide #9. Our gross loan portfolio increased 2.1% over the quarter, equivalent to 2.7% net of FX. On an annual basis, it expanded by 9.6% net of FX, underscoring its resilience among a challenging macroeconomic environment, especially in Colombia. Commercial loans expanded by 2.4%, driven mainly by corporate clients. Mortgage loans continued the growth trend observed over the past 2 years, expanding by 2.5% over the quarter. The growth rate of mortgage portfolio began to moderate amid higher interest rates. Meanwhile, consumer loans expanded by 1%, reflecting our more prudent risk posture in Colombia, partially offset by the strong growth of Nequi's loan portfolio, which operates under a different risk approach aligned with its business model. Please proceed to Slide #10. Bancolombia and Banagricola continued to deliver strong credit dynamics during the quarter. The latter achieved robust commercial loan growth. Bancolombia Panama was the main contributor to growth in U.S. dollars with its loan book expanding by 9.7% over the quarter, serving as an efficient cross-border loan book for all geographies. However, from a currency perspective, the loan book in U.S. dollars slightly dropped to 20%, reflecting a faster growth in the Colombian peso loan book coupled with the currency appreciation. Please proceed to Slide 11. Deposits posted a nominal growth of 2.8% in the quarter, equivalent to a 3.4% net of FX. On an annual basis, nominal growth was 10.4% and 14.3% net of FX, in all cases, outpacing loan growth. Time deposits led quarterly growth with a 6.5% expansion, surpassing the 2% increase in savings accounts as clients sought higher-yielding products given the current rate environment. However, on an annual basis, savings accounts grew 16%, while time deposits increased at a more moderate pace of 5.3%. In Colombia, online time deposits grew 7.7%, driven by a strong demand in the retail segment. They now account for 51% of total time deposits and are a very relevant source of funding due to lower operating costs and better customer experience. At Banagricola and BAM, [ sight ] deposits were the main driver of deposit growth, while time deposits declined in both operations during the quarter. Please proceed to Slide 12. Our funding mix continues to reflect the strength of our sight deposit base, which represents 58% of total funding. The cost of deposits increased slightly by 6 basis points during the quarter as a result of higher remuneration of savings accounts yet remained at a very competitive level given the funding cost pressures. The aggregate balance of savings and checking accounts continue to expand in relative terms on an annual basis across Colombia, El Salvador and Guatemala, reaffirming our ability to build and preserve a stable low-cost funding base. Please proceed to Slide 13. Net interest income increased by 7% during the quarter as a strong growth in interest income outpaced the increase in interest expenses. The lending NIM increased from 7.6% to 7.8%, mainly driven by higher balances and higher yields in Colombia due to our asset-sensitive profile. On the other hand, the investment NIM increased 1.5% to 1.8%, supported by higher yields in the debt investment portfolio as well as in short-term money market and derivative related strategies on the back of a highly volatile market. Therefore, NIM expanded by 20 basis points in the quarter from 6.8% to 7%. Please proceed to Slide 14. Fee income increased by 11.8%, while fee expenses decreased by 9.3% primarily due to a reclassification effective January 2026 of certain customer service and collections related expenses into other administrative and general expenses. Consequently, net fee income grew by 30% year-over-year. Excluding this reclassification, the expenses would have increased by 6.8%, while net fee income would have grown by 15.3% annually. By entity, BAM stood out for its growth in banking services and syndicated loan restructuring fees. Overall, the fee income ratio remained relatively stable at 20% of total net operating income. Please proceed to Slide 15. I would like to highlight the continued progress of our complementary businesses, which enhance our value proposition and competitive advantage in funding and fee income generation by combining the scale and the strength of our banking franchise with the agility and speed of our digital platforms. Wompi has reached breakeven earlier than expected, reflecting its successful evolution from a payment gateway into a broader digital commerce platform, supported by a growing merchant base of more than 55,000 active merchants, an aggregator model that strengthens profitability through scale and strong transaction values. Wompi is a really advanced player in the payment ecosystem. On the other hand, Wenia continues to advance as our digital infrastructure layer with solid growth in users and transactions and the recent launch of USDW strengthening cross-border digital and multicurrency capabilities across the ecosystem. Nequi in turn remains the cornerstone of our digital strategy, expanding into small businesses through Nequi Negocios in advancing the rollout of the global account integrated with Wompi and Wenia to deepen synergies across users, merchants and platforms. Together, these businesses operate as fast-moving complementary platforms designed to accelerate innovation, reduce time to market and unlock new sources of value fully aligned with Grupo Cibest's long-term strategy. Please proceed to Slide 16. Taking a closer look at Nequi, it continues to deliver solid operating momentum with sustained growth across users, transactionality and balance sheet expansion. Activity levels remain high and the share of monetized users continues to increase quarter-over-quarter, reflecting deeper engagement and broader use of value-added functionalities. Deposits closed the quarter at COP 6.8 trillion, slightly below the previous quarter given the seasonality effect, yet showing strong resilience in reinforcing Nequi's role as a leading digital transactional and savings platform with room to further scale lending. On the other hand, the loan portfolio continued to expand, driven by low ticket loans, which are gaining relevance within the mix, driving higher margins adjusted by risk. Consistently with the growth in loan originations, cost of risk increased to 13.9% during the quarter. However, the 90-day past due loan fell to 3.3%, reflecting a normalization in high delinquency collection dynamics supported by enhanced recovery processes. Please proceed to Slide 17. Nequi continues to make progress in monetization with solid quarterly and annual income growth driven by portfolio expansion, an improving loan mix and sustained growth in diversified fee income linked to higher transactional volumes. Importantly, ARPAC continues its upward trend, while CTS keeps declining, reflecting the path to sustainable profitability. Looking ahead to 2026, we reaffirm our guidance. Loans growing 50%, deposits increasing 10% and total income growing 40%, highlighting Nequi's importance within Grupo Cibest's long-term growth and value creation strategy. Please proceed to Slide 18. Net provision expense amounted to COP 1.2 trillion in the first quarter of 2026, representing a 16% quarterly decline on the back of an overall strong loan performance that fully offset a COP 248 billion charge related to weaker macroeconomic outlook for Colombia in 2026 as a result of higher inflation, higher interest rates and a lower GDP growth. Consistently, the quarterly cost of risk stood at 1.9%, above our full year guidance. However, we maintain our full year guidance as we do not foresee additional charges related to macro inputs updates in the coming quarters. When broken down by segment, SMEs remain stable, while consumer loan provisions increased in Bancolombia due to loan growth and seasonal effects and at Banagricola as a result of lower collections during the quarter. Neither of these is considered indicative of a material deterioration in credit quality. Moreover, corporate and specific client provisions declined significantly, reflecting the preemptive measures implemented in the previous quarter. In terms of entities, Bancolombia led the quarterly decline followed by offshore operations in BAM, which posted its lowest provisioning expense in the last 6 quarters, reflecting a significant improvement in asset quality. By contrast, Banagricola recorded a moderate increase in provisioning during the quarter, in line with its strategy to expand into new client segments. Please proceed to Slide 19. From a past due loan formation standpoint, the volume of loans becoming delinquent increased during the quarter, mainly concentrated on consumer loans and mortgages as per the growth achieved over the last 12 months and the seasonal effect observed at the start of the year. Hence, the 30-day past due loan ratio of consumer and mortgages increased, whereas total past due loans for 30 and 90 days remained stable, reflecting a resilient portfolio despite the more challenging macroeconomic backdrop. Consistent with this performance, the stage distribution remained relatively stable during the quarter, yet it reflects the sustained increase in Stage 1 and declines in Stage 2 and 3 over the last year, suggesting a strong asset quality performance going forward. Please proceed to Slide 20. Total operating expenses increased by 24% year-over-year mainly reflecting the COP 374 billion wealth tax accrual related to the second economic emergency decree. Excluding this impact, expense growth would have been 12.9%. After also adjusting for the reclassification of collection and customer service expenses effective January 2026, growth would have been 8.7%. BAM showed the most significant improvement supported by cost optimization initiatives posting an efficiency ratio of 44.5%, while Banagricola maintained its ratio below 48%, driven by stronger income growth related to expenses. All in all, the consolidated cost-to-income ratio rose to 54.5%, excluding the wealth tax, the consolidated efficiency ratio would have been 49.5% in line with our guidance. Please turn to Slide 21. Grupo Cibest's shareholders' equity fell 8.5% quarter-over-quarter provided the COP 4.3 trillion dividend payout that was approved at our Annual General Shareholders Meeting. Bancolombia's stand-alone total solvency ratio reached 13.1% while its common equity Tier 1 ratio stood at 11.1% as of March. The quarterly decline from 14.4% is explained by the reduction in Tier 1 driven by the COP 2.5 trillion paid to Grupo Cibest. In turn, Banagricola's capital ratio closed at 13.6% and BAM at 12.5%, both of them well above minimum requirements. Please turn to Slide 22. Net income reached COP 1.5 trillion or COP 1.8 trillion if we normalize the one-off wealth tax accrual. From an operational perspective, the quarterly and annual results are very strong. As a result, consolidated ROE stood at 15% with Bancolombia posting a standalone ROE of 19%. Moreover, BAM recorded a strong ROE of 16.2%, clearly reflecting the merits of a set of strategic initiatives undertaken to capture efficiencies, boost income and restore credit quality going forward. Banagricola in turn reached an ROE of 20.5%, reaffirming the strength of its business model and sustained efficiency. With this, I will now hand the presentation back to Juan Carlos.

### Q&A Section

**Juan Uribe:**  
Thank you, Mauricio. Please turn to Slide 23. Grupo Cibest continued to make good progress under its business with purpose strategy, reaching cumulative disbursements of COP 389 trillion since 2020, equivalent to approximately 60% of its COP 648 trillion goal for 2030. On the environmental front, Banagricola issued the first blue bond in the Salvadoran capital market to finance sustainable projects. Also of note, Grupo Cibest released its first sustainability disclosure aligned with SASB, TCFD and GRI standards, whereas BAM was recognized among the 250 companies with the best human talent in Central America, ranking third among Guatemalan companies. Please turn to Slide 25. Consistently with the recent GRN 2026 macroeconomic update, which assumes a lower GDP growth rate of 2.9% and a central bank policy rate of 12.75%, we have adjusted some of our guidance items accordingly. We maintain our previous loan growth guidance of 7% to 8% as we continue seeing good demand in commercial segment in Colombia and El Salvador and a slight pickup in mortgages in Guatemala. With respect to NIM, we adjusted the range upwards to 7% and 7.2%, given repricing dynamics and loan origination at a higher rate. We maintain the 1.6% to 1.8% cost of risk range as we have already anticipated the expected deterioration related to the macro backdrop and vintages are performing well. Also, efficiency remains at the same level of 49%. All in all, ROE guidance increases to a range between 19.5% to 20%. Please turn to Slide 26. In conclusion, I would like to highlight that despite the current challenges in Colombia, we have developed a robust business model and risk management framework. These have demonstrated their capacity to adapt efficiently throughout varying macroeconomic cycles as evidenced by our performance over recent years. Also, we are very encouraged with the potential embedded in synergies across our digital platforms that strengthen the value proposition and the channel ecosystem serving as a key driver of growth and profitability. And last, I want to reinforce that we have strong confidence in Colombia's robust institutional framework and in the orderly execution of the presidential elections. This concludes our presentation for today. We welcome any questions you may have at this point.

**Operator:**  
[Operator Instructions] Our first question is from Ernesto Gabilondo with Bank of America.

Ernesto María Gabilondo Márquez: Juan Carlos, Mauricio and Catalina, congrats in your results. My first question will be on the political outlook. So you can provide related update on the Presidential Elections or the latest polls? And what would be the key dates to follow? My second question will be on your NIM trends, especially for 2027. As you pointed out, we should expect a wider NIM expansion this year because of higher rates. I was just wondering how should we think about interest rates next year. And also, how should we think about NIM trend in next year? And my last question will be on your sustainable ROE. For this year, you have said ROE could be between 19.5%, 20%. But how should we think about your sustainable ROE?  

**Juan Uribe:**  
Thank you, Ernesto. Regarding the political outlook, let me remind you the dates. We will have the first round on May 31, so that's in 3 weeks. The runoff will be middle of June. And to remind you that if any candidate don't get at least 50%, it will be a runoff. Regarding polls, there have been several in the last 2, 3 weeks, with some results that by -- on the numbers, but not on the essential of who is leading. And the candidate from the Left is leading in all those polls with a range between 34% to 42%. So that's -- I think at this point, it's clear that the candidate from the Left is leading the polls. On the other hand, the candidates that are -- with possibilities are Abelardo de la Espriella and Paloma Valencia. And depending on the poll -- on the polls that are very tight with a little difference in favor of Abelardo de la Espriella. So still -- 3 weeks that -- in politics means a lot that this last part of the election process is really important. But today, it looks like there is going to be a second round, and there will be a candidate from the Left and one candidate from the Right will go to that second round in mid-June. Regarding NIM, as you mentioned, Ernesto, we updated our net guidance to be between 7% and 7.2%. That's because interest rates are going up in Colombia, and that will have an effect on our NIM. Regarding interest rates and next year interest rates, we are expecting the rates to remain high next year. As you know, we are expecting inflation to continue raising and our guidance on inflation is to be 6.4% at the end of the year. And 2027 also will have an inflation that is going to be out of the range of the Central Bank, which is between 2% and 4%. So we will -- we think that the interest rates will remain high during 2027 as the Central Bank will try to move the inflation into the target range. Regarding ROE, we also updated our ROE for 2026 as you mentioned to be between 19.5% and 20%. And to your question regarding our sustainable ROE in the future, we think it's going to be between 18% and 20%. I don't know, Mauricio, if you want to complement something on these topics.

**Mauricio Botero Wolff:**  
Yes. Ernesto, due to the interest rate landscape, that Juan Carlos just described, we might be in the upper part of the range in 2027 also, but maybe looking at 2028 and going forward, it may go down to 18% to the lower part of that range as the margin becomes more in the long-term view that we have.

Ernesto María Gabilondo Márquez: Excellent. Juan Carlos and Mauricio. And if I may, just a last question on Nequi. We have seen the great evolution of this business. You are already providing data on total income, financial income, fee income, cost to serve. So how much was Nequi's net profit in Colombian pesos in the first quarter? And how much could it be contributing this year? And I don't know if you have like targets of how much could be contributing in the future. And also related to this one, we saw the Nequi's ROE for this quarter, if you can provide a little bit on how was it. And also if you have like a target for the next years.  

**Juan Uribe:**  
Ernesto, regarding Nequi, let me remind you that Nequi is in Bancolombia's book. It's not a separate entity. What we do is we have some administrative numbers of Nequi. And as we announced, we are in the process of separating Nequi as a different entity from Bancolombia and that will be concluded by the third quarter of this year. So the numbers that we have regarding Nequi administrative numbers, and we will have separate numbers by the end of the year once Nequi is a separate legal entity. With that, we are very happy with Nequi results. The dynamics are very positive. The development of Nequi in terms of deposits, in terms of loans, in terms of usage is really, really positive, and we are disclosing part of those -- of that information. So you have a sense. Nequi, as we announced at the end of last year, it's now profitable and is on the way of -- is continuing that trend. So let me pass to Mauricio to give you additional information about Nequi numbers.

**Mauricio Botero Wolff:**  
Yes, Ernesto, the administrative net income that we have for Nequi during the first quarter is around $7 million. This should be around $30 million for the whole year, but it will start having a separate accounting from the moment, it's separated, and we will be able to disclose more complete numbers from the third quarter of this year going forward.

**Operator:**  
Our next question is from Brian Flores with Citibank.

**Brian Flores:**  
I have 2 questions. The first one is a quick one here on the accounting treatment of the tax surcharge. I know based on the disclosure you made on the fourth quarter, you made a provision of around COP 150 billion, right, which was, I think, registered as a deferred tax asset regulation. So I just want to get your thoughts on how is this recognized? Should we expect a reversal of this? I know there's no cash outflow, but you wanted to understand if there's a remeasurement, it's on the same magnitude. If you could give any insights on that one, I think that would be great. If you want after that, I will make my second question.

**Juan Uribe:**  
Brian, yes, indeed, we made a provision in the fourth quarter of last year of COP 150 billion because of the deferred tax recognizing the extra tax rate. So since the court rejected the extra tax rate on April, that's going to be reversed during the second quarter of the year. So in the first quarter, you don't see anything of that, but you will see in the second quarter. And remember that we were having two different decrees. That one was with the extra tax and with no cash effect, as you mentioned. And the other one was the equity tax, the wealth tax. That one has already been accrued in the first quarter and paid in 2 installments. So we're done with that. And what's important to take into account was that the first decree was included in our guidance. Our second decree wasn't. But in net terms, we have a positive result because the first decree was going to account to COP 800 billion, whereas the second decree accounted for COP 374 billion.

**Brian Flores:**  
And then Mauricio just a quick follow-up. So you mentioned it should grow or should be recognized in the second quarter. Is it expected to be in the same magnitude? What I mean is that would be COP 150 billion? Or could it be different as you obviously update your assumptions here on the valuation of the asset?

**Juan Uribe:**  
It will be a little lower because we have already recognized month after month during the year. So it could be around COP 120 billion. And the other COP 30 billion are already in the first quarter results.

**Brian Flores:**  
Super. My second question here, is on capital, right? Because we saw your equity falling slightly quarter-over-quarter. I think this is mostly explained by distributions and buybacks. So I just wanted to understand, I think the lowest level you have been reporting since you became a group is basically the pro forma 10.8%, 10.9% right below the 11% of Tier 1 ratio. So I wanted to understand where is your floor in terms of capital appetite here just to think of the longer-term?

**Juan Uribe:**  
Brian, so we have 2 different effects. We have the impairment from the sale of Banistmo in the fourth quarter. And then we have the effect in the first quarter of the dividends declared. So both of them need to be accounted for at Grupo Cibest level. Now at the operating level, all the banks have very ample capital ratios. Just to give you an idea, Bancolombia is at 13.1%, which is a very comfortable capital level taking into account that is the first quarter after the dividends have been declared. So at the holding level, I would go back to the double leverage ratio in which we are accounting for 95% for the quarter, very low because of the effect that I just mentioned of Banistmo and the dividends.

**Operator:**  
Our next question is from Yuri Fernandes with JPMorgan.

**Yuri Fernandes:**  
I would like to ask about the increase on the new NPL formation, the 30 days PDL. I think that when it's more polluting the historical figures, maybe as an explanation, but we noted a small increase, cost of risk was also a little bit higher. So just checking if you are seeing anything happen on asset quality, if asset quality is something that concerns you, given all inflation and rates we are seeing in Colombia, so basically asking the new PDL formation this quarter, and a view on asset quality. And then a second one regarding deposits. I was checking the seasonality here on first quarter versus fourth quarter. And the 2% quarter-over-quarter, we had, not adjusted by effects, looks a little bit better than historical. So just take -- what is this, this is a flight to quality, it's Nequi. So just trying to understand on your liability franchise, I think it was a good number. So just trying to understand what is driving more deposits here for the bank?

**Juan Uribe:**  
Yuri, regarding your first question, the first quarter, we need to divide the numbers in different aspects to understand the behavior. First, you are right, there is some contamination of the Banistmo numbers. Just to remind you that the cost of risk in Banistmo was low. So when we take out the numbers of Banistmo, the effect is that for the rest -- the remaining of the companies on aggregate go up. So there is an effect of retiring Banistmo from the numbers. In terms of behavior, what we are seeing is not a deterioration. It's -- the results of the first quarter are in line with our expectations. And just to remind you that we also included in the provisions, some macro adjustments for the year. We did that in the last quarter of last year. And also, we had some additional charges during the quarter that are extraordinary. So as a conclusion, the behavior is in line with our expectations. We are cautious and we are accounting for some additional reserves that we started last quarter -- last year, but we are not expecting a big additional deterioration. But good to notice that we -- our guidance of the cost of risk was between 1.6% and 1.8%. We expect 2026 to be -- by the end of 2026, the cost of risk to be on the upper part of the range, meaning they will be closer to 1.8%. And let me pass your second question to Mauricio.

**Mauricio Botero Wolff:**  
Yuri, in fact, the results of the deposits are very positive. Net of FX, we have a deposit growth of 14% over the year, 19% -- only 19% for savings accounts. So basically, that's the result of a strategy based on transactionality, on the ecosystem, on investment, on our digital businesses in order to complement the value proposition. So we haven't gotten into a price strategy in terms of deposits in order to be able to maintain, retain or attract deposits. Other than that, we have kept on investing on the value proposition. So what you're seeing there is basically the result of having more transactions, more customers using more our physical and digital channels. And at the end of the day, all those transactional deposits are giving us a very stable and low cost of funding.

**Yuri Fernandes:**  
Super clear. So message number one, you're a little bit cautious but not seeing anything major guiding for the high end of the guidance for the year, 1.8%, not the 1.6%, so an improvement from the 1.9%, but likely on the high end of the guidance. And just a follow-up on deposits, Mauricio, in this shift on savings, like, does it change the sensitivity to rate at some degree? Like is the liability somehow important for your sensitivity to higher rates in Colombia?

**Mauricio Botero Wolff:**  
Not really, Yuri. If you look at the cost of deposits, it only increased 6 basis points. We have to recognize the rate scenario more in the time deposit product, both the physical time deposits and the online time deposits. But in savings accounts, we keep on having almost half of our deposits on savings accounts, they amounted to 47% out of all the deposit base and the cost of those savings accounts is only 2.3% with an overall cost of deposits of 3.97%. So we have been able to reprice our asset side without having to pay extra cost or significant extra cost for our deposits that way being able to expand our margin.

**Operator:**  
Our next question is from Lindsey Shema with Goldman Sachs.

**Lindsey Marie Shema:**  
Just one question from me on loan growth. It seems like commercial loan growth is still really healthy. Just wondering how much of that was corporate kind of pulling forward loans in order to kind of circumvent the expected increase in rates? And then just how do you expect loan growth by segment to trend going forward?

**Juan Uribe:**  
Yes, in fact, I would say that some of that commercial loan growth was explained because of what you said. We saw some projects that needed to have the financial closing and because of the rate scenario needed at closing to happen in the first quarter. But I would say those were just a few projects. So I would say that the growth is sustainable. The growth we are having in commercial loans as it is explained not only by corporate clients, but also by SMEs. So I wouldn't say that it's just because of the financial closing that I mentioned at the beginning. Now to have the breakdown of the loan growth expectation, it's 8.3% in commercial loans, in consumer loans is 6.2% and in mortgage loans is 9.7%. Out of those 3 products, I would say, consumer loans are the ones in which we are seeing a more stable dynamic as we restricted some of the origination strategies due to the increase in the salary with the effect on inflation and interest rates. So in consumer loans, we're being more cautious.

**Operator:**  
Our next question is from Carlos Gomez with HSBC.

Carlos Gomez-Lopez: Two brief ones. One is regarding your neighbors, actually. So has the relationship with Venezuela or the relation with Ecuador have any impact on you? And do you expect that in the future that could be something can benefit or was in your business? And the second one is Bre-B, the system introduced by the Central Bank for payments. Has that had any financial impact so far you may have discussed that before.  

**Juan Uribe:**  
Regarding your first question, let me separate both countries. With Venezuela, we are seeing that there are companies in Colombia looking for opportunities in Venezuela. Still, they are cautious and exploring. There are some companies that are returning to that market, that are exporting from Colombia. And even you start seeing some companies starting to consider starting again operations in Venezuela. So as a summary, there is an opportunity. It still is -- the companies are cautious, and we are working with them to accompany them on that strategy. But still, we need to wait a little bit to be -- to consolidate that trend, but definitely we think in the midterm, it's going to be positive for Colombia. The relationship between the 2 countries is very, very strong in terms of the economies, the complement, so for Colombia and from Colombian companies, it will be a good opportunity. Regarding Ecuador, what is happening is not good. The tariffs imposed are restricting the commerce between the 2 countries. And basically, that commerce, that was important for Colombia and for Ecuador, now it's practically going to 0. What we expect is that this is most of political reasons than economic reasons. So when the politics advance that will clear and we will return to a normal economic relationship. But it depends on the politics. So what is happening with Ecuador is not positive. It's concentrating in some sectors, particularly some companies and consumer sector companies that in the past exported to Venezuela. But it's very focalized. It is not something that is having a huge -- a big impact on the Colombia -- in the Colombian economy, and we expect to be something that will return to the normal course in the coming future. And regarding Bre-B. Bre-B, it's going very well. I mean, the number of transactions have, the adoption is increasing, the number of transaction is very positive, and we are a key actor on the Bre-B ecosystem. So what we see is the adoption has been very positive and has been an actor -- a key actor on that system. And as a matter of fact, and regarding to a question that was asked before, our savings deposits are growing close to 16%. So that shows that we have transactional accounts that people are using and are using -- also with the Bre-B system. It is positive overall. And as we are participating in that system on a positive way, Carlos.

Carlos Gomez-Lopez: And do you have an estimate about your market share in Bre-B transactions?  

**Juan Uribe:**  
We have a market share of the key things enrolled in the system between Nequi and Bancolombia. We have 50% of the keys of the system.

Carlos Gomez-Lopez: 5-0?  

**Juan Uribe:**  
Yes. 5-0.

Carlos Gomez-Lopez: Which is 30% for -- 25%, 30% for the other products, so this is quite impressive. Excellent.  

**Juan Uribe:**  
Thank you, Carlos.

**Operator:**  
Our next question is from Santiago Villanueva with Davivienda.

**Santiago Villanueva Lizcano:**  
Congratulations on the quarter. I just have 2 questions. My first question is considering the impairment of Banistmo didn't represent the cash outflow and that no extraordinary dividend has been declared for this year. You're going to allocate capital on the buy backs program and additional capital to Nequi won't be [ needed ]. But I would like to know if you can provide more information on how you plan to use the proceeds from Banistmo transaction taking into account the amount of the transaction. And my second question is, could you please give us more information about the strategies you are implementing at BAM to improve its profitability.

**Juan Uribe:**  
Thank you, Santiago. Let me take your second question and I'll pass your first to Mauricio. As we have said in the past, we see that BAM as a big opportunity for us, and we reaffirm that BAM is a key part of Cibest's strategy, and we see a big opportunity in Guatemala. The economy is stable. We see companies with very good dynamics. So what we have done is we took some measures regarding expenses in BAM. Also, we are implementing our digital ecosystem in Guatemala. So we will continue to develop that strategy. The first quarter results were very good. For the rest of the year we probably will have results that are not in the same number that we saw in the first quarter. We will be more -- the ROE for the whole year for BAM will be around a little bit above cost of capital, meaning 13% area. So to summarize, we took some measures on expenses also on the strategy with our digital ecosystem. Also, we are taking advantage of the Cibest ecosystem and the advantage that we have in the cost of funds to lend in Guatemala. And we see a healthy economic activity in the country. So the combination of those factors are -- explain how we are -- how we improved the results of BAM in Guatemala, Santiago.

**Mauricio Botero Wolff:**  
Santiago, as you know, with the new corporate structure, capital optimization and value creation is one of our main goals. So let me tell you different strategies in which we are deploying some of the capital that we are generating and also getting from the sale of Banistmo. For this year, we have approved COP 1.35 trillion buyback program. We're also going to invest COP 0.5 trillion in Nequi, and we're also going to issue from Bancolombia an AT1 of COP 1 trillion that is going to be subscribed by Grupo Cibest. And we're also going to invest in 2 different subordinated debt instruments from Bancolombia Panama into BAM and Banagricola, amounting to almost COP 1 trillion. If you add all those, we are deploying capital of USD 1 billion in this year without taking into account the possibility of having an extraordinary dividend because of the sale of Banistmo, which, of course, is a possibility, as we have mentioned previously, and we will consider it once the sale is executed.

**Operator:**  
Thank you. There are no further questions at this time. I would like to hand the floor back over to management for any closing comments.

**Juan Uribe:**  
Thank you, everybody, for participating in this conference call. We are really happy with the first quarter results, we see a very positive dynamic with some extraordinary items that we introduced in our results, but we see the year on a positive way. So with this, we expect you to participate on our second quarter results. Thank you very much, and have a good day.

**Operator:**  
This concludes today's conference. Thank you again for your participation. You may disconnect your lines at this time.