Q4 2025 Grupo Cibest SA Earnings Call

Speaker #1: Good morning, ladies and gentlemen, and welcome to Grupo Cibest S.A.'s fourth-quarter 2025 earnings conference call. My name is Carrie, and I will be your operator for today's call.

Speaker #1: At this time, all participants are in a listen-only mode. Following the prepared remarks, there will be a question-and-answer session. During the question-and-answer session, if you have a question, please press star, then 1 on your touch-tone phone.

Speaker #1: 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 .

Speaker #1: 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 uncertainty 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 , targeted Chief economist I will now turn the call over to Mr. Juan Carlos Mora , Chief Executive Officer .

Speaker #1: Please go ahead

Speaker #2: Good morning . And welcome to Grupo Cibest S.A. Q4 conference call Please turn to slide two . Even with fiscal difficulties and volatile markets caused by trade tariffs and geopolitical issues , Colombia experienced steady economic growth in 2025 , largely driven by consumer spending and government expenditures .

Speaker #2: Rising public debt uncertainty about minimum wage changes , potential new taxes and possible mandatory investments for financial institutions have recently worsened the macroeconomic outlook for 2026 , leading to inflationary pressures , higher interest rates and expected weaker overall economic performance .

Speaker #2: Last year . Grupo Cibest S.A. new holding structure improved our capital allocation , enabling higher dividends , share buy backs and greater flexibility As shown by recent divestment , furthermore , the agreement to sell Urbanismo resulted in a non-cash impairment charge .

Speaker #2: An asset held for sale accounting during the quarter , which affected both quarterly and annual financial results As will be detailed further . Thus , annual net income totaled $3.8 trillion .

Speaker #2: And ROE reached 9.1% , reflecting the impact of the impairment However . Excluding this one off accounting effect , Grupo Cibest S.A. have delivered 7.3 trillion net income , significantly exceeding its guidance equivalent to an ROE of 17.2% .

Speaker #2: This performance was driven by strong operational results , resilient margins and improved asset quality Moreover , given the significant progress achieved in our digital businesses , both Nike and Wampee reached breakeven in the fourth quarter .

Speaker #2: Another key milestone, as these businesses complete our value proposal and are key drivers of strong long-term returns. Also, yesterday, we announced to the market our proposed dividend to be submitted for shareholders' approval, amounting to $4.3 trillion, equivalent to $4,512 per share, to be paid in four installments starting April 1st.

Speaker #2: Despite one off effects from divestment , the group achieved a 14.6% annual dividend growth , exceeding inflation by over 950 basis points and boosting shareholder returns through its new corporate structure Please proceed to slide three .

Speaker #2: The market has acknowledged the value generated by our transformation into Grupo Cibest S.A. , as evidenced by the strong performance of our shares .

Speaker #2: This success further strengthens the credibility of our strategic roadmap from the time the transaction was announced on since the end of 2025 , the common shares , preferred shares , an ADR have each shown impressive double digit gains 87% , 75% and 104% , respectively This increases were mainly driven by major milestones .

Speaker #2: Shareholders approval of the holding companies creation . The introduction of the share buyback program and subsequently Banistmo Divesture . When it comes to valuations , our price to book ratios have improved and our p e multiples now indicate increased market confidence and more optimistic outlook on our long term profitability Moreover , we are very pleased with the recent announcement of the inclusion of our common shares in the Footsie large cap index , supported by the continued increase in the trading volumes .

Operator: Good morning, ladies and gentlemen, and welcome to Grupo Cibest, Bancolombia's Q4 2025 Earnings Conference Call. My name is Carrie, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Following the prepared remarks, there will be a question-and-answer session. During the question-and-answer session, if you have a question, please press Star, then 1 on your touchtone phone. 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, in future filings, in press releases, or verbally, address matters that involve risks and uncertainty.

Speaker #2: Please proceed to slide four . Regarding the share buyback program . As of December 31st , approximately 32% of the total authorized amount has been executed , representing around 8.6 million shares , or nearly 1% of our total shares outstanding .

Operator: 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 Tobón, Investor Relations and Capital Markets Director, and Ms. Laura Clavijo, Chief Economist. I will now turn the call over to Mr. Juan Carlos Mora, Chief Executive Officer. Please go ahead.

Speaker #2: Of the reported shares , 53% were preferred shares , 40% were ADR and 7% were common shares Since the program began , we have observed an average appreciation of 37% across all three share types I would like to emphasize that the program remains active and its ongoing execution continues to be fully aligned with our strategic capital allocation plan .

Speaker #2: Market conditions and each shares class , liquidity and capacity to absorb volume . I will now like to invite Laura Clavijo Chief Economist to provide an overview of the macroeconomic landscape .

Speaker #2: Laura

Speaker #3: Thank you . Juan Carlos . If you could please turn to slide six . In 2025 , the Colombian economy demonstrated moderate resilience with overall growth of 2.6% amid a complex macro environment marked by global uncertainty Domestic policy shifts and structural challenges During the fourth quarter , real GDP growth of 2.3% underperformed against expectations , reflecting short term strength in domestic demand .

Juan Carlos Mora Uribe: Good morning, and welcome to Grupo Cibest's Q4 conference call. Please turn to slide 2. Even with fiscal difficulties and volatile markets caused by trade tariffs and geopolitical issues, Colombia experienced steady economic growth in 2025, largely driven by consumer spending and government expenditures. Rising public debt, uncertainty about minimum wage changes, potential new taxes, and possible mandatory investments for financial institutions have recently worsened the macroeconomic outlook for 2026, leading to inflationary pressures, higher interest rates, and expected weaker overall economic performance. Last year, Grupo Cibest's new holding structure improved our capital allocation, enabling higher dividends, share buybacks, and greater flexibility, as shown by Banistmo recent divestment. Furthermore, the agreement to sell Banistmo resulted in a non-cash impairment charge and asset held for sale accounting during the quarter, which affected both quarterly and annual financial results, as will be detailed further.

Speaker #3: But structural weakness in investment and the external balance . Private consumption remains the primary driver of growth , supported by robust household spending , remittance flows and the surprisingly strong labor market demand in sectors such as retail , entertainment and financial services continue to thrive even as primary activities such as mining , agriculture and construction underperform .

Speaker #3: Relative to broader economic activity Public expenditure also favored economic momentum , increasing at an annual pace of almost 5% during the fourth quarter for an overall expansion of 4.5% during 2025 .

Speaker #3: Public sector spending has come at the expense of a widening fiscal deficit of close to 6.3% of GDP and a primary deficit of 3.4% .

Speaker #3: The government has adamantly responded with emergency fiscal measures , including tax reforms , debt management operations and regulatory efforts to support spending in the final leg of the administration and the ongoing campaign Inflationary pressures persisted throughout 2025 , with the Consumer Price Index missing the central bank's 3% target for a fifth consecutive year .

Juan Carlos Mora Uribe: Thus, annual net income totaled pesos 3.8 trillion and ROE reached 9.1%, reflecting the impact of the impairment. However, excluding this one-off accounting effect, Grupo Cibest will have delivered pesos 7.3 trillion in net income, significantly exceeding its guidance, equivalent to an ROE of 17.2%. This performance was driven by strong operational results, resilient margins, and improved asset quality. Moreover, given the significant progress achieved in our digital businesses, both Nequi and Wompi reached breakeven in the Q4. Another key milestone as these businesses complete our value proposal and are key drivers of Cibest's long-term returns. Also, yesterday, we announced to the market our proposed dividend to be submitted for shareholders' approval, amounting to pesos 4.3 trillion, equivalent to pesos 4,512 per share, to be paid on four installments starting 1 April.

Speaker #3: Inflation closed at 5.1% and expectations rose sharply at the end of the year , proving that a stable monetary policy rate was ineffective Furthermore , expectations increased even further on the onset of the announcement of a historically high minimum wage of 23.7% for 2026 .

Speaker #3: In response , de la Republica initiated a hiking cycle by raising its policy rate in 100 basis points . During its January meeting Our updated view incorporates year end inflation of 6.4% and a monetary policy rate that should rise at least 200 basis points and may undermine growth dynamics .

Speaker #3: In summary , Colombia's economy is poised for moderate growth in 2026 , supported by resilient domestic demand , but remains exposed to inflationary pressure .

Speaker #3: Rising interest rates and deteriorating fiscal and external balance , boosting investment . Both foreign and local , will be the key to unlocking better economic dynamics and stronger macro fundamentals that may prove challenging amidst political uncertainty .

Speaker #3: If you could please turn to slide seven . In 2025 , the Central American region delivered moderate but solid economic performance with Guatemala and Panama among the fastest growing economies in the subregion According to world Bank estimates , both Guatemala and Panama expanded GDP by approximately 3.8% and 4.1% in 2025 , outpacing regional peers .

Juan Carlos Mora Uribe: Despite one-off effects from Banistmo divestiture, the group achieved a 14.6% annual dividend growth, exceeding inflation by over 950 basis points and boosting shareholder returns through its new corporate structure. Please proceed to slide 3. The market has acknowledged the value generated by our transformation into Grupo Cibest, as evidenced by the strong performance of our shares. This success further strengthens the credibility of our strategic roadmap. From the time the transaction was announced until the end of 2025, the common shares, preferred shares, and ADRs have each shown impressive double-digit gains: 87%, 75%, and 104%, respectively. These increases were mainly driven by major milestones: shareholders' approval of the holding company's creation, the introduction of the share buyback program, and subsequently, Banistmo divestiture.

Speaker #3: El Salvador's growth was slightly more modest , around 2.8% , reflecting ongoing structural constraints and external vulnerabilities . Guatemala's diversified economic base supported resilient domestic demand , while Panama's performance was underpinned by services , logistics and trade sectors .

Speaker #3: El Salvador's pace was constrained by lower productivity and fiscal adjustments , though tourism and remittances provided important buffers Overall , the outlook for 2026 remains constructive for investors , with growth prospects supported by stable consumption , remittance flows , and integration into regional value chains Though careful monitoring of fiscal dynamics and external risks is warranted .

Speaker #3: Now , please let me turn the presentation to Mauricio , who will present CVS 2025 performance .

Speaker #2: Thank you, Laura. Please go to.

Speaker #4: Slide number nine . Before we discuss our results , I would like to briefly explain the accounting impacts recorded in the fourth quarter .

Juan Carlos Mora Uribe: When it comes to valuations, our price-to-book ratios have improved, and our PE multiples now indicate increased market confidence and more optimistic outlook on our long-term profitability. Moreover, we are very pleased with the recent announcement of the inclusion of our common shares in the FTSE Large Cap Index, supported by the continued increase in the trading volumes. Please proceed to slide 4. Regarding the share buyback program, as of 31 December, approximately 32% of the total authorized amount has been executed, representing around 8.6 million shares, or nearly 1% of our total shares outstanding. Of the reported shares, 53% were preferred shares, 40% were ADRs, and 7% were common shares. Since the program began, we have observed an average appreciation of 37% across all three share types.

Speaker #4: Given the recently announced agreement to sell 100% of shares to Inversiones Cuscatlan , Central America , Asia , the transaction consists of an all cash consideration of $1.4 billion , equivalent to a multiple of 17.1 times earnings and 1.2 times book value , triggering a one time non-cash net impairment charge of $3.4 trillion .

Speaker #4: Related to goodwill operations had to be recognized as assets held for sale , meaning all assets and liabilities were reclassified , creating significant variations on the balance sheet compared to the previous quarter and previous year .

Speaker #4: Consistently , most contribution was deducted from the PNL and net impact adjusted through net income from discount discontinued operations from fiscal year 2024 and 2025 .

Juan Carlos Mora Uribe: I would like to emphasize that the program remains active and its ongoing execution continues to be fully aligned with our strategic capital allocation plan, market conditions, each share's class liquidity, and capacity to absorb volume. I would now like to invite Laura Clavijo, Chief Economist, to provide an overview of the macroeconomic landscape. Laura?

Speaker #4: However , to facilitate understanding the year over year variations of the PNL items presented here are calculated based on the actual 2024 results .

Speaker #4: Excluding the reclassification Also , we provide a proforma year over year variation , assuming no reclassification on 2025 figures either . A set of balance sheet and PNL statements for both the fourth quarter and full year .

Laura Clavijo: Thank you, Juan Carlos. If you could please turn to slide 6. In 2025, the Colombian economy demonstrated moderate resilience with overall growth of 2.6% amid a complex macro environment marked by global uncertainty, domestic policy shifts, and structural challenges. During Q4, real GDP growth of 2.3% underperformed against expectations, reflecting short-term strength in domestic demand, but structural weakness in investment and the external balance. Private consumption remains the primary driver of growth, supported by robust household spending, remittance flows, and a surprisingly strong labor market. Demand in sectors such as retail, entertainment, and financial services continued to thrive, even as primary activities such as mining, agriculture, and construction underperformed relative to broader economic activity.

Speaker #4: Reflecting the required Reclassifications as well as proforma versions . Excluding these effects are available in the press release published yesterday and included in the appendix of this presentation .

Speaker #4: I just want to emphasize that the accounting impact did not affect the bank's capital ratios or the dividend flows to and from CVS Now , please proceed to slide number ten .

Speaker #4: Our loan portfolio declined 8.3% over the year, mainly explained by the accounting impact, absent of which the growth would have been 2.1%.

Speaker #4: In addition, the 15% appreciation of the Colombian peso in the period reduced the value of our foreign currency portfolios when translated into local currency. Excluding both impacts, the loan book would have grown 7.2% year over year when broken down by loan category.

Laura Clavijo: Public expenditure also favored economic momentum, increasing at an annual pace of almost 5% during Q4, for an overall expansion of 4.5% during 2025. Public sector spending has come at the expense of a widening fiscal deficit of close to 6.3% of GDP and a primary deficit of 3.4%. The government has adamantly responded with emergency fiscal measures, including tax reforms, debt management operations, and regulatory efforts to support spending in the final leg of the administration and the ongoing electoral campaign. Inflationary pressures persisted throughout 2025, with the Consumer Price Index missing the central bank's 3% target for a fifth consecutive year. Inflation closed at 5.1%. Expectations rose sharply at the end of the year, proving that a stable monetary policy rate was ineffective.

Speaker #4: Mortgages continued to lead growth . Consumer lending also regained momentum after two years of contraction , driven by a renewed risk appetite and by Nike's continued expansion in low value loans Meanwhile , commercial lending grew at a more moderate pace , though it showed a slight pickup in the second half of the year in Colombia Despite ongoing political uncertainty Now , please proceed to slide 11 .

Speaker #4: When analyzing performance by operation , Bank Colombia and El Salvador led loan growth delivered the strongest expansion with commercial lending accelerating sharply , particularly in the construction sector , supported by renewed demand for housing projects Consumer activity was also positive , driven by personal loans and credit cards .

Laura Clavijo: Furthermore, expectations increased even further on the onset of the announcement of a historically high minimum wage of 23.7% for 2026. In response, Banco de la República initiated a hiking cycle by raising its policy rate in 100 basis points during its January meeting. Our updated view incorporates year-end inflation of 6.4% and a monetary policy rate that should rise at least 200 basis points and may undermine growth dynamics. In summary, Colombia's economy is poised for moderate growth in 2026, supported by resilient domestic demand, but remains exposed to inflationary pressure, rising interest rates, and deteriorating fiscal and external balance. Boosting investment, both foreign and local, will be the key to unlocking better economic dynamics and stronger macro fundamentals that may prove challenging amidst political uncertainty. If you could please turn to slide 7.

Speaker #4: Bombing Guatemala and Panama . Applied tighter credit standards , resulting in a more restrained lending dynamic . During the year . Now please proceed to slide number 12 .

Speaker #4: Our deposits reported a 5.2% contraction in the year , but expanded 4.5% absent of accounting impacts if FX impact is removed . Deposits growth would have been 10.2% .

Speaker #4: I would like to highlight the solid performance of savings accounts , which grew 16.1% net of accounting and foreign exchange effects . Deposit growth was very positive across all operations , with particularly strong contributions from Banca Agricola and Bancolombia , which explains the group's robust liquidity position throughout the year Now , please proceed to slide number 13 .

Laura Clavijo: In 2025, the Central American region delivered moderate but solid economic performance, with Guatemala and Panama among the fastest-growing economies in the sub-region. According to World Bank estimates, both Guatemala and Panama expanded GDP by approximately 3.8% and 4.1% in 2025, outpacing regional peers. El Salvador's growth was slightly more modest, around 2.8%, reflecting ongoing structural constraints and external vulnerabilities. Guatemala's diversified economic base supported resilient domestic demand, while Panama's performance was underpinned by services, logistics, and trade sectors. El Salvador's pace was constrained by lower productivity and fiscal adjustments, though tourism and remittances provided important buffers. Overall, the outlook for 2026 remains constructive for investors, with growth prospects supported by stable consumption, remittance flows, and integration into regional value chains, though careful monitoring of fiscal dynamics and external risks is warranted....

Speaker #4: In terms of our funding mix , we highlight the larger share of deposits relative to time deposits and other funding sources , which reduces funding costs and enhances structural liquidity to certain extent .

Speaker #4: This shift is the result of the reclassification of Banistmo that held a higher share of time deposits in other liabilities , relative to other banks of the group , but also given the strong growth on savings accounts across Colombia , El Salvador and Guatemala , such that this now represents 47% of total deposits on a consolidated basis , compared with 40% a year earlier This outcome clearly underscores our ability to attract and retain stable , low cost funding , reducing the overall cost of liabilities to 3.8% , a decline of 114 basis points compared to the previous year Now please proceed to slide 14 .

Laura Clavijo: Now, please let me turn the presentation to Mauricio, who will present Cibest 2025 performance.

Mauricio Botero Wolff: Thank you, Laura. Please go to slide number 9. Before we discuss our results, I would like to briefly explain the accounting impacts recorded in the Q4, given the recently announced agreement to sell 100% of Banistmo's shares to Inversiones Cuscatlán Centroamérica, S.A. The transaction consists of an all-cash consideration of $1.4 billion, equivalent to a multiple of 17.1x earnings and 1.2x book value, triggering a one-time non-cash net impairment charge of COP 3.4 trillion related to goodwill. Banistmo's operation had to be recognized as assets held for sale, meaning all assets and liabilities were reclassified, creating significant variations on the balance sheet compared to the previous quarter and previous year.

Speaker #4: Net interest income decreased by 5.3% on an annual basis , but recorded a 1% expansion excluding accounting impacts . Such increase is the result of a larger contraction in interest expense relative to interest income during the year , supported by a series of hedging strategies that allowed us to reprice funding more quickly as rates came down .

Speaker #4: The annual Nim decreased as expected , from 6.8% to 6.5% . Excluding accounting impacts Given the lower prevailing interest rates compared to the previous year .

Speaker #4: When broken down by entity . It is worth noting Banco Agricola's consistent Nim expansion due to its well growth , both in high yielding loans and low cost deposits Please proceed to slide 15 .

Mauricio Botero Wolff: Consistently, Banistmo's contribution was deducted from the PNL and net impact adjusted through net income from discontinued operations from fiscal year 2024 and 2025. However, to facilitate understanding, the year-over-year variations of the PNL items presented here are calculated based on the actual 2024 results, excluding the reclassification. Also, we provide a pro forma year-over-year variation, assuming no reclassification on 2025 figures either. A set of balance sheet and PNL statements for both the Q4 and full year, reflecting the required reclassifications, as well as pro forma versions excluding these effects, are available in the press release published yesterday and included in the appendix of this presentation. I just want to emphasize that the accounting impact did not affect the bank's capital ratios or the dividend flows to and from Cibest. Now, please proceed to slide number 10.

Speaker #4: Next , we income increased by 4.3% year over year , or 10.4% excluding accounting impacts These performance was fueled by higher transactional activity in credit and debit cards , mainly supported by a new bancassurance alliance in Colombia .

Speaker #4: In addition , brokerage payments and collections and trust services continue to perform well , reflecting a well non-interest revenue mix when fee related expenses increased in line with higher activity levels , particularly in card related services .

Speaker #4: We continued to capture operational efficiencies , especially through adjustments in the corresponding banking model Overall fee income continues to be key for our earnings diversification , and it represented 18.4% of our total net operating income in 2025 .

Mauricio Botero Wolff: Our loan portfolio declined 8.3% over the year, mainly explained by the accounting impact, absent of which the growth would have been 2.1%. In addition, the 15% appreciation of the Colombian peso in the period reduced the value of our foreign currency portfolios when translated into local currency. Excluding both impacts, the loan book would have grown 7.2% year-over-year. When broken down by loan category, mortgages continued to lead growth. Consumer lending also regained momentum after 2 years of contraction, driven by a renewed risk appetite and by Nequi's continued expansion in low-value loans. Meanwhile, commercial lending grew at a more moderate pace, though it showed a slight pickup in the second half of the year in Colombia, despite ongoing political uncertainty. Now, please proceed to slide 11.

Speaker #4: Please proceed to slide 16 . Moreover , I would like to highlight the solid progress we are making in scaling our complementary businesses , which play a key role in strengthening our group's competitive advantage .

Speaker #4: By combining the best of traditional banking with the innovation of our digital solutions , Wampee achieved a major milestone by reaching break even in 2025 , supported by strong growth in clients , transaction volumes and fee income This expansion in revenues outpaced operating expenses , enabling the company to reach profitability On the other hand , when you are continued advancing steadily , supported by growth in onboarded clients , assets under custody , as well as a sharp increase in transactions that reinforces its compelling value proposition Finally , regarding Nikki , I'm pleased to share that it reached break even in the fourth quarter earlier than expected , driven by a strong growth in deeper monetization across its ecosystem , which I briefly discuss next Please proceed to slide 17 .

Mauricio Botero Wolff: When analyzing performance by operation, Bancolombia and El Salvador led loan growth. Bancoagrícola delivered the strongest expansion, with commercial lending accelerating sharply, particularly in the construction sector, supported by renewed demand for housing projects. Consumer activity was also positive, driven by personal loans and credit cards. BAM in Guatemala and Banistmo in Panama applied tighter credit standards, resulting in a more restrained lending dynamic during the year. Now, please proceed to slide number 12. Our deposits reported a 5.2% contraction in the year, but expanded 4.5% absent of accounting impacts. If FX impact is removed, deposits growth would have been 10.2%. I would like to highlight the solid performance of savings accounts, which grew 16.1%, net of accounting and foreign exchange effects.

Speaker #4: Nikki's loan portfolio is scaled significantly increasing 174% over the period to reach a balance of 1.6 trillion , surpassing the goal of doubling the loan portfolio by 2025 .

Speaker #4: As of year end , 700,000 clients held active loans , reflecting an average ticket size of $2.3 million in an average term of 32 months .

Speaker #4: The 90 day loan for 2025 stands at 3.5% , and the cost of risk remains contained at 13.1% , aligned with a scalable digital origination model Deposits show similar momentum , up 58% year over year to 7 trillion Colombian pesos in the fourth quarter of 2025 , reinforcing Nikki's role as a leading digital savings and transactional platform Still with room in its loan to deposit ratio .

Mauricio Botero Wolff: Deposit growth was very positive across all operations, with particularly strong contributions from Bancoagrícola and Bancolombia, which explains the group's robust liquidity position throughout the year. Now, please proceed to slide number 13. In terms of our funding mix, we highlight the larger share of side deposits relative to time deposits and other funding sources, which reduces funding costs and enhances structural liquidity. To a certain extent, this shift is the result of the reclassification of Banistmo, that held a higher share of time deposits and other liabilities relative to other banks of the group, also given the strong growth on savings accounts across Colombia, El Salvador, and Guatemala, such that this now represents 47% of total deposits on a consolidated basis, compared with 40% a year earlier.

Speaker #4: To further expand the loan portfolio revenue side, financial income increased 75%, supported by strong portfolio growth in a more balanced mix between low income and investment income positioning.

Speaker #4: Nikki for continued improvement in structural profitability Please proceed to slide 18 . Moreover , it closed 2025 with 27.4 million users in an activity ratio close to 80% , demonstrating a strong client engagement .

Speaker #4: Also, monetized users rose 43% to 16.5 million, driven by deeper product adoption across the ecosystem. Regarding fee income, Nikki delivered a 53% increase versus the prior year, reaching $175 billion in the fourth quarter of 2025.

Mauricio Botero Wolff: This outcome clearly underscores our ability to attract and retain stable, low-cost funding, reducing the overall cost of liabilities to 3.8%, a decline of 114 basis points compared to the previous year. Now, please proceed to slide 14. Net interest income decreased by 5.3% on an annual basis, but recorded a 1% expansion, excluding accounting impacts. Such increase is the result of a larger contraction in interest expense relative to interest income during the year, supported by a series of hedging strategies that allowed us to reprice funding more quickly as rates came down. The annual NIM decreased as expected, from 6.8% to 6.5%, excluding accounting impacts, given the lower prevailing interest rates compared to the previous year.

Speaker #4: We diversified growth across cards , withdrawals and FX , reducing concentration risk and enhancing resilience consistently , Arpack and CTS metrics remain with positive trends , supporting a disciplined path toward profitability as monetization expense in line with customer engagement Finally , looking ahead to 2025 , guidance remains strong , with total users expected to grow 5% , loans expanding 50% , deposits increasing 10% , and total income rising 40% .

Speaker #4: Reinforcing its strategic relevance and long term value creation potential within the group Please proceed to slide 19 . Net provisions for the year amounted to $4.4 trillion .

Mauricio Botero Wolff: When broken down by entity, it is worth noting Banco Agrícola's consistent NIM expansion due to its well-balanced growth, both in high-yielding loans and low-cost deposits. Please proceed to slide 15. Net fee income increased by 4.3% year-over-year, or 10.4%, excluding accounting impacts. This strong performance was fueled by higher transactional activity in credit and debit cards, mainly supported by a new bancassurance alliance in Colombia. In addition, brokerage, payments and collections, and trust services continued to perform well, reflecting a well-diversified non-interest revenue mix. Fee-related expenses increased in line with higher activity levels, particularly in card-related services, we continued to capture operational efficiencies, especially through adjustments in the correspondent banking model. Overall, fee income continues to be key for our earnings diversification. It represented 18.4% of our total net operating income in 2025.

Speaker #4: An almost 19% reduction over the year, 16% excluding accounting impacts, on the back of lower expected losses related to consumer and SMEs.

Speaker #4: That offset the growth on corporate Given the deterioration recorded of a few non sector related groups , the group performance on almost all segments more than compensated for the increase in provisions recorded at the end of the year .

Speaker #4: Given the sudden change in macro variables . Discussed earlier , which exerts pressure on households and enterprises , disposable income Thus , the annual cost of risk was 1.8% , which , absent of the deduction of assets , would have been 1.6% in line with our updated guidance .

Speaker #4: Please proceed to slide 20 . Consistent with the lower expected losses that drove net provision charges down , asset quality strengthened steadily throughout the year across all major indicators from a payday loan formation standpoint .

Speaker #4: The volume of loans becoming delinquent during the period declined significantly versus historical averages . LED primarily by improvements in the consumer portfolio . In line with this trend , both the stage distribution and the non-performing loan ratio improved , reinforcing provision coverage levels .

Mauricio Botero Wolff: Please proceed to slide 16. Moreover, I would like to highlight the solid progress we are making in scaling our complementary businesses, which play a key role in strengthening our group's competitive advantage by combining the best of traditional banking with the innovation of our digital solutions. Wompi achieved a major milestone by reaching breakeven in 2025, supported by strong growth in clients, transaction volumes, and fee income. This expansion in revenues outpaced operating expenses, enabling the company to reach profitability. On the other hand, Wenia continued advancing steadily, supported by growth in onboarded clients, assets under custody, as well as a sharp increase in transactions that reinforces its compelling value proposition. Finally, regarding Nequi, I'm pleased to share that it reached breakeven in Q4, earlier than expected, driven by a strong growth and deeper monetization across its ecosystem, which I briefly discuss next.

Speaker #4: Please proceed to slide 21 . The operating expenses increased by 1.6% year over year , or 8.3% excluding the accounting impacts . General expenses increased primarily due to licensing and technology related costs associated with the group's ongoing business transformation , followed by an uptick in other taxes stemming from the incorporation of Grupo Cibest S.A.

Speaker #4: personal expenses increased 2.3% year over year , or 10% excluding accounting impacts . Primarily driven by the annual wage adjustment in higher bonus provisions aligned with the full year financial results forecast .

Speaker #4: The cost to income ratio reached 49.8% , in line with our updated guidance , reflecting a slower pace of income growth relative to expenses explained by the name reduction .

Mauricio Botero Wolff: Please proceed to slide 17. Nequi's loan portfolio has scaled significantly, increasing 174% over the period to reach a balance of COP 1.6 trillion, surpassing the goal of doubling the loan portfolio by 2025. As of year-end, 700,000 clients held active loans, reflecting an average ticket size of COP 2.3 million in an average term of 32 months. The 90-day past-due loan for 2025 stands at 3.5%, and the cost of risk remains contained at 13.1%, aligned with a scalable digital origination model. Deposits show similar momentum, up 58% year-over-year to COP 7 trillion in Q4 2025, reinforcing Nequi's role as a leading digital savings and transactional platform, still with room in its loan-to-deposit ratio to further expand the loan portfolio.

Speaker #4: As expected Please turn to slide 22 . Net income for the year was 3.8 trillion , which absence of the one off accounting impact would have reached 7.3 trillion , reflecting the strength of our operations even outperforming our updated guidance as a result , consolidated ROE was 9.1% , or 17.2% absent of impacts primarily pushed by van Colombia's standalone proforma return of 24% .

Speaker #4: Please turn to slide 23 . Shareholders equity fell 8.7% year over year . 1% absent of impacts explained by a reduction of retained earnings driven by the net impact of the impairment charge discussed above .

Speaker #4: On the other hand , Colombia's standalone core equity tier one ratio closed at 12.2% , an increase of 27 basis points over the 2024 year end proforma figure .

Mauricio Botero Wolff: On the revenue side, financial income increased 75%, supported by a strong portfolio growth in a more balanced mix between low income and investment income, positioning Nequi for continued improvement in structural profitability. Please proceed to slide 18. Moreover, it closed 2025 with 27.4 million users in an activity ratio close to 80%, demonstrating a strong client engagement. Also, monetized users rose 43% to 16.5 million, driven by deeper product adoption across the ecosystem. Regarding fee income, Nequi delivered a 53% increase versus the prior year, reaching COP 175 billion in the Q4 of 2025. We diversified growth across cards, withdrawals, and FX, reducing concentration risk and enhancing resilience. Consistently, ARPAC and CTS metrics remain with positive trends, supporting a disciplined path toward profitability as monetization expands in line with customer engagement.

Speaker #4: Assuming the corporate evolution into Grupo CBS had already taken place . I would also like to highlight the significantly lower Cet1 deductions recorded during the year , only seven Bips compared to nearly 70 Bips in 2024 .

Speaker #4: As the goodwill from the Central American banks was no longer required to be deducted . All in all , Bancolombia standalone total solvency reached 14.4% in Banco Agricola and Bam above 13.5% , all of them well above minimum requirements These sound capital ratios , coupled with a low double leverage of 101% in Grupo Cibest S.A.

Speaker #4: , allowed us to propose the 60% dividend payout ratio discussed earlier With this , I will now hand the presentation back to Juan Carlos .

Speaker #4: Juan

Speaker #2: Thank you . Mauricio . Please proceed to slide 24 By 2025 , Grupo Cibest S.A. had originated $370 trillion in loans through its business with purpose strategy , progressing toward the 716 trillion target for 2030 .

Mauricio Botero Wolff: Finally, looking ahead to 2025, guidance remains strong, with total users expected to grow 5%, loans expanding 50%, deposits increasing 10%, and total income rising 40%, reinforcing its strategic relevance and long-term value creation potential within the group. Please proceed to slide 19. Net provisions for the year amounted to COP 4.4 trillion, an almost 19% reduction over the year. 16%, excluding accounting impacts on the back of lower expected losses related to consumer and SMEs that offset the growth on corporate, given the deterioration recorded of a few non-sector related groups. The group performance on almost all segments more than compensated for the increase in provisions recorded at the end of the year, given the sudden change in macro variables discussed earlier, which exerts pressure on households and enterprises' disposable income.

Speaker #2: In the latest Dow Jones Sustainability Index evaluation, Grupo Cibest S.A. achieved a score of 88 points, which is higher than last year's result.

Speaker #2: Banco Agrícola has been recognized as the organization with a high reputation in El Salvador, while Bancolombia has received equivalent recognition in Colombia for the 11th consecutive year. Please proceed to slide 26.

Speaker #2: Our 2026 forecast now incorporates major shifts in our macroeconomic expectations , especially regarding inflation and interest rates It also accounts for the impact of the Urbanismo , Deconsolidation and increase uncertainty , largely due to higher taxes compared to our earlier assumptions .

Speaker #2: In this context , we anticipate loan growth in the range of 7 to 8% , with a net interest margin expected between 6.8 and 7% , reflecting the current higher interest rate environment .

Mauricio Botero Wolff: Thus, the annual cost of risk was 1.8%, which, absent of the deduction of Banistmo's assets, would have been 1.6%, in line with our updated guidance. Please proceed to slide 20. Consistent with the lower expected losses that drove net provision charges down, asset quality has strengthened steadily throughout the year across all major indicators. From a past due loan formation standpoint, the volume of loans becoming delinquent during the period declined significantly versus historical averages, led primarily by improvements in the consumer portfolio. In line with this trend, both the stage distribution and the non-performing loan ratio improved, reinforcing provision coverage levels. Please proceed to slide 21. The operating expenses increased by 1.6% year-over-year, or 8.3%, excluding the accounting impacts.

Speaker #2: The cost of risk is projected to be between 1.6 and 1.8% , while operational efficiency is targeted at approximately 49% . As a result , ROE is expected to be between 18 and 18.5% .

Speaker #2: Now , please proceed to slide 27 for some final remarks . In conclusion , I wish to emphasize that 2025 represents a pivotal year for the group , characterized by an effective implementation of our corporate transformation , the initiation of our share repurchase program , and the agreement regarding the Urbanismo divestment .

Speaker #2: Collectively , these actions demonstrate our continued dedication to generating sustained value for our shareholders . Looking ahead , although fiscal deficit challenges persist , the prevailing high interest rate environment offers potential for marginal improvement , which could offset weaker loan demand and emerging credit risks .

Mauricio Botero Wolff: General expenses increased primarily due to licensing and technology-related costs associated with the group's ongoing business transformation, followed by an uptick in other taxes stemming from the incorporation of Grupo Cibest. Personal expenses increased 2.3% year-over-year, or 10%, excluding accounting impacts, primarily driven by the annual wage adjustment and higher bonus provisions aligned with the full year financial results forecast. The cost-to-income ratio reached 49.8%, in line with our updated guidance, reflecting a slower pace of income growth relative to expenses, explained by the NIM reduction as expected. Please turn to slide 22. Net income for the year was pesos 3.8 trillion, which, absent of the one-off accounting impact, would have reached pesos 7.3 trillion, reflecting the strength of our operation, even outperforming our updated guidance.

Speaker #2: We are confident that the electoral process will be conducted smoothly, strengthening our positive environment for operations. This concludes our presentation for today. We welcome any questions you may have at this point.

Speaker #1: Thank you We will now be conducting a question and answer session . If you would like to ask a question , please press star one on your telephone keypad .

Speaker #1: A confirmation tone will indicate your line is in the question queue . You may press star two . If you would like to remove your question from the queue for participants using speaker equipment , it may be necessary to pick up your handset before pressing the star keys And our first question will come from Tito Labarta with Goldman Sachs

Speaker #5: Hi . Good morning . Thank you for the call . And taking my question . My question , I guess , is on the outlook for asset quality and the cost of risk guidance .

Speaker #5: I mean , I think , you know , short term things are going well , but inflation remains high . Interest rates are high .

Mauricio Botero Wolff: As a result, consolidated ROE was 9.1% or 17.2% absent of impacts, primarily pushed by Bancolombia's standalone pro forma return of 24%. Please turn to slide 23. Shareholders' equity fell 8.7% year-over-year, 1% absent of impacts, explained by a reduction of retained earnings driven by the net impact of the impairment charge discussed above. On the other hand, Bancolombia's standalone Core Equity Tier 1 ratio closed at 12.2%, an increase of 27 basis points over the 2024 year-end pro forma figure, assuming the corporate evolution into Grupo Cibest had already taken place. I would also like to highlight the significantly lower CET1 deductions recording during the year.

Speaker #5: Juan Carlos , you mentioned there potential asset quality risk . How are you seeing asset quality and what do you think the risks are given this continued high inflation , high level of rates .

Speaker #5: And could that put maybe some pressure on cost of risk or asset quality . Either throughout the year or into next year ? Thank you

Speaker #2: Hey . Thank you Tito Definitely the the cost of risk is something that we will need to manage during during this year . You see , year in which we will have some challenges , some challenges .

Speaker #6: And you mentioned .

Speaker #2: Sorry , sorry for that And you mentioned some of them . Inflation is one of them . And also as a consequence interest rates .

Speaker #2: But we believe that we are well prepared to manage that uncertainty that is coming in the economy . So our guidance regarding cost of risk includes those challenges that that we have in front of us .

Mauricio Botero Wolff: Only 7 basis points, compared to nearly 70 basis points in 2024, as the goodwill from the Central American Bank was no longer required to be deducted. All in all, Bancolombia's standalone total solvency reached 14.4% in Banco Agrícola, and BAM about 13.5%, all of them well above minimum requirements. These sound capital ratios, coupled with a low double leverage of 101% in Grupo Cibest, allow us to propose the 60% dividend payout ratio discussed earlier. With this, I will now hand the presentation back to Juan Carlos Mora. Juan?

Speaker #2: So we are very well aware that there will be a macroeconomic challenges , but again , we think that in the guidance that we are providing , we are incorporating our capacity to manage those risks In the upper level , which is 1.8 of cost of risk , we we are incorporated some some of those risks that we see .

Speaker #2: But even though those risks , we believe that there are opportunities , the Colombian economy has shown so far that could manage some of those risks , particularly for coming from consumption .

Juan Carlos Mora Uribe: Thank you, Mauricio. Please proceed to slide 24. By 2025, Grupo Cibest had originated 370 trillion pesos in loans through its business with purpose strategy, progressing toward the 716 trillion pesos target for 2030. In the latest Dow Jones Sustainability Index evaluation, Grupo Cibest achieved a score of 88 points, which is higher than the last year's result. Banco Agrícola has been recognized as the organization with a high reputation in El Salvador, while Bancolombia has received equivalent recognition in Colombia for the 11th consecutive year. Please proceed to slide 26. Our 2026 forecast now incorporates major shifts in our macroeconomic expectations, especially regarding inflation and interest rates. It also accounts for the impact of the Banistmo deconsolidation and increased uncertainty, largely due to higher taxes compared to our earlier assumptions.

Speaker #2: That is fueling that development. So Tito definitely is something that we are going to watch very closely, and we will continue updating.

Speaker #2: How are we seeing the forecast of the cost of risk ? But we are confident that with the tools that we have , the understanding that we have on the economy , we can react fast to any upcoming risk and adapt our our models and our our behavior to to those risks .

Speaker #2: Tito

Speaker #5: Okay . No , that's very helpful . Thank you . Juan Carlos Well , a second question , if I may , just in terms of capital allocation , I mean , your ROE has been doing better than expected .

Speaker #5: You know , all the underlying banks are fairly well capitalized . You have been executing on your buyback , but I think there could potentially be room for more .

Speaker #5: How do you think, one, either about additional buybacks once this program is completed? And two, just, I think the market—as you highlight, the sale of Nismo has been well received.

Speaker #5: You still have Banco Mercantil, which is just relatively underperforming from an ROE perspective. And I like the charts that you showed: lower NIM, higher MPLs.

Juan Carlos Mora Uribe: In this context, we anticipate loan growth in the range of 7% to 8%, with a net interest margin expected between 6.8% and 7%, reflecting the current higher interest rate environment. The cost of risk is projected to be between 1.6% and 1.8%, while operational efficiency is targeted at approximately 49%. As a result, ROE is expected to be between 18% and 18.5%. Now, please proceed to slide 27 for some final remarks. In conclusion, I wish to emphasize that 2025 represent a pivotal year for the group, characterized by an effective implementation of our corporate transformation, the initiation of our share repurchase program, and the agreement regarding the Banistmo divestiture. Collectively, these actions demonstrate our continued dedication to generating sustained value for our shareholders.

Speaker #5: How do you think about just the capital allocation into , you know , Bank Mercantil , which has been underperforming a bit . You know , could there be more sales here or do you see room to improve that ?

Speaker #5: And how much could you improve that . Thank you

Speaker #2: Tito What we achieved with the creation of Grupo Cibest S.A. was a lot of the ability to manage our capital in a much better way .

Speaker #2: So now we have much more flexibility And we are aware of the possibilities that we have . So we will we will continue managing a capital to be very , very efficient in in the sense that we will Utilize that capital for growth .

Speaker #2: But also to return to to shareholders , depending on the situation regarding the specific comment about Bam , I want to emphasize that we are committed to continue supporting the operation in Guatemala .

Juan Carlos Mora Uribe: Looking ahead, although fiscal deficit challenges persist, the prevailing high interest rate environment offers potential for marginal improvement, which could offset weaker loan demand and emerging credit risks. We are confident that the electoral process will be conducted smoothly, strengthening our positive environment for operations. This concludes our presentation for today. We welcome any questions you may have at this point.

Speaker #2: We see a very good potential in that operation . It's a country with a good macro economic stability , with a potential for commercial businesses and so we will we are confident that our model will create a positive impact on our operation in in Guatemala .

Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question will come from Tito Labarta with Goldman Sachs.

Speaker #2: So we will we will continue supporting the operation . And we are confident that the numbers that you mentioned will continue improving . We are targeting double digit ROE .

Speaker #2: It will take some time. We are aware of that, that the year for the performance of BAM will show its results fully.

Tito Labarta: Hi, good morning. Thank you for the call and taking my question. My question, I guess, is on the outlook for asset quality and the cost of risk guidance, right? I mean, I think, you know, short-term things are going well, but, you know, inflation remains high, interest rates are high. Juan Carlos, you mentioned there, you know, potential asset quality risk. How are you seeing, you know, asset quality, and what do you think the risks are given this, you know, continued high inflation, high level of rates? Could that put maybe some pressure on cost of risk or asset quality either throughout the year or into next year? Thank you.

Speaker #2: Results in 2027 . We are on a transition to to to have those numbers that we are are looking for again , we are we are very confident about about how we can develop that , that franchise in Guatemala .

Speaker #2: I don't know if you have any additional comments to Tito's question . And I , I would just add that due to the flexibility we have now with the new corporate structure and with the level of capital and liquidity , we're going to have in at the holding level , we're going to be optimizing the capital of the different operations .

Juan Carlos Mora Uribe: Thank you, Tito. Definitely, the cost of risk is something that we will need to manage during this year. It's a year in which we will have some challenges. And you mentioned some of them. Inflation is one of them, and also, as a consequence, interest rates. We believe that we are well prepared to manage that uncertainty that is coming in the economy. Our guidance regarding cost of risk includes those challenges that we have in front of us. We are very well aware that there will be macroeconomic challenges, but again, we think that in the guidance that we are providing, we are incorporating our capacity to manage those risks.

Speaker #2: So we expect to do to issue some instruments inside the perimeter of the holding in order to have some flow of capital going from the holding to the operating entities and the operating entities flowing dividends to the holding company .

Speaker #2: So that's going to be one way to capitalize , to optimize capital allocation . And along with the investments we plan to do , we want to capitalize Neki .

Speaker #2: We're going to capitalize one P and Wenya , which are having very good .

Speaker #4: Dynamics . And we're also going to be investing in it projects that , you know , are making a big difference in our value proposal .

Juan Carlos Mora Uribe: In the upper level, which is 1.8 of cost of risk, we are incorporated some of those risks that we see. Even though those risks, we believe that there are opportunities, the Colombian economy has shown so far that could manage some of those risks, particularly for coming from consumption that it's fueling that development. Tito, definitely, it's something that we are going to watch very closely, and we will continue updating how are we seeing the forecast of the cost of risk. We are confident that with the tools that we have, the understanding that we have of the economy, we can react fast to any upcoming risk and adapt our models and our behavior to those risks, Tito.

Speaker #4: So we plan to do all of that . And only to to wrap up the buyback program will be their is here to stay .

Speaker #4: We're going to present a three year buyback program . And but we are only going to execute according to market conditions

Speaker #5: Okay . That's great . Thank you . Mauricio and Juan Carlos .

Speaker #4: Thank you Tito .

Speaker #1: Our next question comes from Yuri Fernandez with J.P. Morgan

Speaker #7: Well , when Carlos Mauricio , everyone and congrats on the year . I have a I was just two questions here regarding the the guidance and the outlook for 2026 .

Speaker #7: The first one is regarding taxes . We saw some I'm not sure if I should call a one off , but 150 billion tax headwind in the fourth quarter .

Speaker #7: So just asking your view like should we continue to see this emergency tax into 2026 . And what was the tax rate that the guidance was built with ?

Tito Labarta: Okay. No, that's very helpful. Thank you, Juan Carlos. Well, second question, if I may, just on terms of capital allocation, right? I mean, ROE has been doing better than expected. You know, all the underlying banks are fairly well capitalized. You have been executing on your buyback, you know, I think, you know, there could potentially be room for more. How do you think, 1, either about additional buybacks, you know, once this program is completed, and 2, just, yeah, I think the market, as you highlight, the sale of Banistmo has been well received. You still have Banco Agromercantil, which is, you know, just relatively underperforming from a ROE perspective. You know, like the chart stage show, lower NIM, higher NPLs.

Speaker #7: Like , are you assuming like a higher tax rate ? And if yes , what . Just trying to understand , you know , the taxes moving pieces .

Speaker #7: And then I have a question regarding the ROE for , for , for for the year , the 18 to 18.5 . I know the guidance is fully done without .

Speaker #7: So I would assume that you are also using the lower . Equity . Right . The equity with lower impairment and ex minority .

Speaker #7: So just checking what was the the , the equity that you are implying . So we can kind of estimate the net income because basically the average equity for 2025 was higher right than the end of period .

Tito Labarta: How do you think about, you know, just the capital allocation into, you know, Banco Agromercantil, which has been underperforming a bit? You know, could there be more sales here or do you see room to improve that, and how much could you improve that? Thank you.

Speaker #7: So just checking here for us to try to estimate the net income growth . Thank you

Speaker #8: Thank you . Yuri Let me let me give you some general comments about your two questions . And then pass a are Mauricio for for comments and for additional comments .

Juan Carlos Mora Uribe: Tito, what we achieved with the creation of Grupo Cibest was the ability to manage our capital in a much better way. Now we have much more flexibility, and we are aware of the possibilities that we have. We will continue managing capital to be very efficient in the sense that we will utilize that capital for growth, but also to return to shareholders, depending on the situation. Regarding your specific comment about BAM, I want to emphasize that we are committed to continue supporting the operation in Guatemala. We see very good potential in that operation. It's a country with a good macro economic stability, with potential for commercial businesses.

Speaker #8: Taxes reading taxes . At this point in Colombia is is very difficult . I mean , you know that at the end of the year there was There were some regulations regarding taxes that in February were suspended by the Constitutional Court .

Speaker #8: So those taxes that incorporated additional income tax for financial institutions is now suspended . And it is it is awaiting for the final decision from the Constitutional Court .

Speaker #8: So what we did at the end of 2025 was incorporating the information that we had at that moment . So in the fourth quarter , we have the around 150 .

Speaker #8: Trillion pesos . Billion pesos , I'm sorry , in which we are with the information that we had at that moment . We were the fourth quarter , there were there is a provision about additional taxes .

Juan Carlos Mora Uribe: We are confident that our model will create a positive impact on our operation in Guatemala. We will continue supporting the operation, and we are confident that the numbers that you mentioned will continue improving. We are targeting double digit ROE. It will take some time. We are aware of that the year for the performance of BAM will show its results fully in 2027. We are on a transition to have those numbers that we are looking for. Again, we are very confident about how we can develop that franchise in Guatemala.

Speaker #8: So now there is an another regulation that is in progress . We don't have the information yet . It has been informal or some messages from the government that will incorporate some equity taxes .

Speaker #8: And they are saying that probably will have a tariff for financial institutions , but we don't have that information yet . It's supposed to come out this , this week .

Speaker #8: So, it is difficult. It's difficult to read at this moment. How are we going, or what are going to be the effective taxes for 2025?

Juan Carlos Mora Uribe: I don't know, Mauricio, if you have any additional comments to Tito's question.

Speaker #8: In Colombia , the with that scenario , what we have for our guidance is an effective tax rate of 28% . That we believe reflects the current information that that we have .

Mauricio Botero Wolff: Hi, Tito. I would just add that due to the flexibility we have now with the new corporate structure, and with the level of capital and liquidity we're gonna have at the holding level, we're gonna be optimizing the capital of the different operations. We expect to do some to issue some instruments inside the perimeter of the holding in order to have some flow of capital going from the holding to the operating entities, and the operating entities flowing dividends to the holding company. That's gonna be one way to capitalize to optimize capital allocation along with investments we plan to do. We want to capitalize Nequi. We're going to capitalize Wompi and Wenia, which are having very good dynamics.

Speaker #8: Once we have more information , we will incorporate Additional additional information . I'm sorry about how are going to be the effective taxes for for 2025 .

Speaker #8: Regarding your second question about Roe , I will I will pass it to to Mauricio .

Speaker #4: Thank you .

Speaker #8: And

Speaker #4: Hi , Judy . Just to be very clear with with the message that Carlos just asked the the tax rate with which we projected our guidance in regular operations is the one that he just mentioned , is 29 .

Speaker #4: It moves from 28 to 30% now we included extra taxes because of of the extra tax rate , because of the decree that was a on the table that as you know , has not been confirmed .

Mauricio Botero Wolff: We're also going to be investing in IT projects that, you know, are making a big difference in our value proposal. We plan to do all of that. Only to wrap up, the buyback program will be there, it's here to stay. We're going to present a three-year buyback program, but we are only going to execute according to market conditions.

Speaker #4: But I guess my message here is our guidance of 18 to 18.5 . Does include extra taxes because of the extra tax rate , which was the information we had at the moment .

Tito Labarta: Okay, that's great. Thank you, Mauricio and Juan Carlos.

Speaker #4: We built the guidance , the new decree , the one on the equity has not been included . So the message here is is very unlikely that both of the decrees are accepted , regardless of which one is accepted or confirmed .

Juan Carlos Mora Uribe: Thank you, Tito.

Operator: Our next question comes from Yuri Fernandes with JP Morgan.

Yuri Fernandes: Hello, Juan Carlos, Mauricio, everyone, and congrats on the year. I will ask just two questions here regarding the guidance and the outlook for 2026. The first one is regarding taxes. We saw some, I'm not sure if I should call out one off, but COP 150 billion tax headwind in the Q4. Just asking your view, like, should we continue to see this emergency tax into 2026? What was the tax rate that the guidance was built with? Like, are you assuming, like, a higher tax rate? If yes, what? Just trying to understand, you know, the taxes moving pieces. Then I have a question regarding the ROE for the year.

Speaker #4: It's important to note that the guidance does include extra provisions for taxes. Now, to your second point around the equity used for the guidance.

Speaker #4: It is the equity after the impairment . So to do your math , the 18% ROE corresponds to a net income of 7.3 trillion .

Speaker #4: So it's flat in terms of net income as compared to 2025. But that's without Banistmo, without Banistmo equity, and without Banistmo net income.

Yuri Fernandes: 18 to 18.5, I know the guidance is fully done without Banistmo. I would assume that, you are also using the lower equity, right? The equity with lower impairment and X minority. Just checking, what was the equity that you are implying, so we can kind of estimate the net income? Basically, the average equity for 2025 was higher, right, than the end of period. Just checking here for us to try to estimate the net income growth. Thank you.

Speaker #7: Super clear Mauricio and Juan Carlos . So basically the guidance , I would say is in between on text . Right ? It's very hard as Juan Carlos mentioned , to to have a view .

Speaker #7: A lot of uncertainty . So you have some of the , the , the decrease , not the true decrease . So let's say a bookcase , none of those decrease decrease .

Speaker #7: Vale . There is an upside risk to the guidance on taxes . If the second decree and the first degree also prevails , then there could be a downside risk to to to to the to the guidance on higher taxes .

Juan Carlos Mora Uribe: Thank you, Yuri. Let me give you some general comments about your two questions, and I then pass Mauricio for comments, for additional comments. Taxes, reading taxes at this point in Colombia is very difficult. I mean, you know that at the end of the year, there were some regulations regarding taxes that in February were suspended by the Constitutional Court. Those taxes that incorporated additional income tax for financial institutions is now suspended, and it is waiting for a final decision from the Constitutional Court. What we did at the end of 2025 was incorporating the information that we had at that moment.

Speaker #7: That's basically that's basically the message right ?

Speaker #4: That is correct . Judy . That's correct .

Speaker #7: Thank you very much, guys. Thank you.

Speaker #9: Thank you

Speaker #1: We'll go next to Andres Soto with Santander Mexico

Speaker #10: Good morning , Juan Carlos . Mauricio , thank you for the presentation . My question is regarding guidance . I would like to , you know , if you are assuming 11% policy rate and actually , you know , expectations are quickly moving higher than that , will that imply that you will need to do another model update down the road and build additional provisions and if so , is that a downside risk to to your guidance ?

Speaker #10: And also considering , you know , the uncertainties on taxes , it looks it looks like that could be another potential headwind to your ROE in 2026 .

Juan Carlos Mora Uribe: In Q4, we have around COP 150 billion pesos, I'm sorry, in which we are with the information that we had at that moment. The Q4, there is a provision about additional taxes. Now there is another regulation that is in progress. We don't have the information yet. It has been informal or some messages from the government that will incorporate some equity taxes, and they are saying that probably will have a tariff for financial institutions, but we don't have that information yet. It's supposed to come out this week.

Speaker #10: So I would like to understand what would be the factors that could balance out in order for guys to reach this , these 18 to 18.5% ROE

Speaker #9: Thank you Andres . The guidance that is given to the market incorporates the information that we we have at this point . And you mentioned that , of course , interest rates are going are going up .

Speaker #9: That's that's a factor already . The central bank increase the reference rate 100 basis points . And and our view is that that is going to continue .

Speaker #9: So that implies that interest rates will be higher in the economy . Much higher that as you know , we are sensitive . And that is going to have a positive effect on our on our Nim .

Speaker #9: So that is there are positive effect . The , the the the other side of the coin on that comment is that , that it's increasing the risk .

Juan Carlos Mora Uribe: It is difficult to wait at this moment, how are we going or what are going to be the effective taxes for 2025 in Colombia? With that scenario, what we have for our guidance is an effective tax rate of 28% that we believe reflects the current information that we have. Once we have more information, we will incorporate additional information, I'm sorry, about how are going to be the effective taxes for 2025. Regarding your second question about ROE, I will pass it to Mauricio.

Speaker #9: So we will there have to balance that higher margin with a higher cost of risk . But we think in that equation we are able to deliver the guidance that we are providing .

Speaker #9: So even with those risks and anticipating that behavior , we think that we are we are able to deliver the guidance that we are , that we are providing .

Speaker #9: So it's a year in which we will need very need to be following the development of the macro variables and also risk very , very closely .

Speaker #9: But we are confident that we have the tools to react fast enough to deliver the guidance that we are providing. Mauricio, do you have any additional comments?

Mauricio Botero Wolff: Thank you. Hi, Yuri. Just to be very clear, with the message that Juan Carlos just passed, the tax rate with which we projected our guidance in regular operations is the one that he just mentioned, is 29. It moves from 28 to 30%. Now, we included extra taxes because of the extra tax rate, because of the decree that was on the table, that, as you know, has not been confirmed. I guess my message here is our guidance of 18 to 18.5 does include extra taxes because of the extra tax rate, which was the information we had at the moment we built the guidance. The new decree, the one on the equity, has not been included. The message here is, it's very unlikely that both of the decrees are accepted.

Speaker #4: Yes . Andres , taking into account that we have like a natural hedge on volumes and prices , volumes as prices go , go up because interest rates go up , volumes may go down and that may be offset .

Speaker #4: So just , just to take into account that we have a we simulated some scenarios of interest rates going up to 12% . So that's why we use a ranges in our guidance , not only in ROE but also in cost of risk to to consider both scenarios .

Speaker #4: Now , in order to to anticipate what could happen with an interest rate of with a high interest rate scenario . Just wanted to let you know that we have already closed some risk brackets in in consumer lending .

Speaker #4: So we already closed some of the origination risk profiles and it's also good to take into account that we , at the end of 2025 , we anticipated 3000 300,000 provisions a considering the increase in the legal minimum wage because we knew when we included that into the models , we knew that that could cause inflation pressures and interest rates increases .

Mauricio Botero Wolff: Regardless of which one is accepted or confirmed, it's important to note that the guidance does include extra provisions for taxes. Now, to your second point around the equity used for the guidance, it is the equity after the impairment. To do your math, the 18% ROE corresponds to a net income of COP 7.3 trillion. It's flat in terms of net income, as compared to 2025, but without Banistmo. Without Banistmo's equity and without Banistmo's net income.

Speaker #4: So we already have 300,000 of potential deterioration in our in our consumer portfolio . And also we have a as you know , as you know , extra provisions for a specific corporate clients at the end of 2025 .

Yuri Fernandes: No, super clear, Mauricio and Juan Carlos. Basically, the guidance, I would say, is in between on tax, right? It's very hard, as Juan Carlos mentioned, to have a view, a lot of uncertainty. You had some of the decrees, not the two decrees. Let's say a bull case, none of those decrees will prevail, there is an upside risk to the guidance on taxes. If the second decree prevails and the first decree also prevails, then there could be a downside risk to the guidance on higher taxes. That's basically the message, right?

Speaker #4: So if you put those things together, we feel very comfortable. We can, we can meet the target of cost of risk for 2026.

Speaker #10: Perfect . Thank you . My second question is regarding capital deployment . Your double leverage stands at 101% . What is the level you guys feel comfortable with and regarding the capital allocation priorities that you previously mentioned , including providing capital for your new new ventures , can you please quantify how much capital are you planning to put into those subsidiaries

Juan Carlos Mora Uribe: That is correct, Judy.

Mauricio Botero Wolff: That's correct, Judy.

Yuri Fernandes: No, thank you very much, guys. Thank you.

Juan Carlos Mora Uribe: Thank you, Judy.

Operator: We'll go next to Andres Soto with Santander, Mexico.

Speaker #4: Yeah, Andres, we plan to put around $600 million, $600 billion in, around.

Andres Soto: Good morning, Juan Carlos, Mauricio, thank you for the presentation. My question is again regarding guidance. I would like to understand, you know, if you are assuming a 11% policy rate and actually, you know, expectations are quickly moving higher than that, will that imply that you will need to do another model update down the road and build additional provisions? If so, is that a downside risk to your guidance? Also considering, you know, the uncertainties on taxes, it looks like that could be another potential headwind to your ROE in 2026.

Speaker #9: That right ? Yeah .

Speaker #4: Pesos . 50 billion to both a wenya and Wampee . We are investing a lot in it . Organic projects and according to the instruments and I mentioned before , we plan to do at least 2 trillion of 81 from Bancolombia a around $250 million from the Central American operations to Civis .

Andres Soto: I would like to understand what will be the factors that could balance out in order for you guys to reach these 18% to 18.5% ROE?

Speaker #4: So that's that's the overall picture in terms of capital deployment . And I'm sorry , around the the question of double leverage . Yes , it's 101 .

Juan Carlos Mora Uribe: Thank you, Andres. The guidance that is given to the market, it incorporates the information that we have at this point. You mentioned that, of course, interest rates are going up. That's a fact. Already the central bank increased the reference rate 100 basis points. Our view is that that is going to continue. That implies that interest rates will be higher in the economy, much higher. That, as you know, we are sensitive, and that is going to have a positive effect on our NIM. So that is a positive effect. On the other side of the coin on that comment is that it's increasing the risk.

Speaker #4: Our limit according to conversation with risk rating agencies is 120 . So we're using the capital A as I just mentioned . But it's important to know that we have approximately 20 percentage points of extra leverage .

Speaker #4: If we would like

Speaker #10: Perfect . That's very clear . Thank you . Thank you very much . And congratulations on the results .

Speaker #9: Thank you Andres

Speaker #1: We'll go next to . Ernie Gabilondo with Bank of America .

Speaker #11: Thank you . Hi . Good morning , Juan Carlos Mauricio and Catalina . And good morning to your team . Thanks for the opportunity to ask questions My first question will be on the political economic outlook .

Speaker #11: So given the recent salary increase , how do you see the Congress selection on March 8th ? And can you elaborate on the proposals of the three leading candidates for the next presidential election in May And my second question is on operating expenses .

Juan Carlos Mora Uribe: We will there have to balance that higher margin with a higher cost of risk. We think in that equation, we are able to deliver the guidance that we are providing. Even with those risk and anticipating that behavior, we think that we are able to deliver the guidance that we are providing. It's a year in which we will need very to be following the development of the macro variables and also risk very closely. We are confident that we have the tools to react fast enough to deliver the guidance that we are providing. Mauricio, do you have any additional comments?

Speaker #11: I believe last time you mentioned opex growth should be around inflation plus 200 basis points. So, just wanted to know if that will be the case for this year.

Speaker #11: And if you are seeing any impact related to the recent salary increase in in personnel costs . And also if you can elaborate on how much of the opex growth will be on a recurring basis and how much will be related to the technology costs , advertising all of what you are doing in 20 and one ?

Speaker #11: Thank you

Mauricio Botero Wolff: Yes, Andres, taking into account that we have like a natural hedge on volumes and prices, volumes as prices go up because interest rates go up, volumes may go down and that may be offset. Just to take into account that we have, we simulated some scenarios of interest rates going up to 12%. That's why we use ranges in our guidance, not only in ROE, but also in cost of risk, to consider both scenarios. Now, in order to anticipate what could happen with an interest rate of with a high interest rate scenario, just wanted to let you know that we have already closed some risk brackets in consumer lending. We already closed some of the origination risk profiles.

Speaker #9: Thank you . Ernest . Let me let me elaborate a little bit on the on the political scenario . As you all maybe know , we are two weeks away of congressional , congressional elections and also they are going to be three primaries in the same date .

Speaker #9: That's the 8th of March . It is difficult to try to predict how the Congress is going to evolve in this composition , but there are some facts .

Speaker #9: That is important to take into account. There are going the five seats that were given on the peace process of 2016, now expired.

Speaker #9: So, those five seats that were in the government coalition are not going to be there anymore. So, there are five seats less, and those seats were supporting the government.

Speaker #9: On the other hand , the the composition of the Liberal , the several leading parties at this point , there are some Forecasts that in the case of the government , the parties that have have had a coalition in this case opposing , opposing to this government will probably continue having a strong position .

Mauricio Botero Wolff: It's also good to take into account that we, at the end of 2025, we anticipated 300,000 provisions, considering the increase in the legal and minimum wage. We knew when we included that into the models, we knew that that could cause inflation pressures and interest rates increases. We already have 300,000 of potential deterioration in our consumer portfolio. Also, we had, as you know, as you know, extra provisions for a specific corporate client at the end of 2025. If you put those things together, we feel very comfortable we can meet the target of cost of risk for 2026.

Speaker #9: But again , at this point is is very difficult to know . What we know is the probably the Senate will be will have a composition that is going to be a much balanced and probably with a majority of coalition that is not supporting this this government .

Speaker #9: That's that , that we , we have now regarding the , the propositions of the several candidates , there are I will just say that there are a clear candidate from the left , and there is going to be a primary to elect another candidate from the left .

Andres Soto: Perfect. Thank you. My second question is regarding capital deployment. Your double leverage stands at 101%. What is the level you guys feel comfortable with, regarding the capital allocation priorities that you previously mentioned, including providing capital for your new ventures? Can you please quantify how much capital are you planning to put into those subsidiaries?

Speaker #9: Also . So we will have probably two candidates running on the first round representing the left . There is a coalition in the center .

Speaker #9: Nine candidates , center right , nine candidates , and we will have another strong candidate there . And there is a more far right candidate that is also strong .

Juan Carlos Mora Uribe: Yeah, Andres, we plan to put around COP 600 million, COP 600 billion in Nequi.

Speaker #9: And the the proposals are more are reflecting in what they are , the way of thinking are candidates from the left will continue on the on .

Andres Soto: That's pesos, right?

Juan Carlos Mora Uribe: pesos 50 billion to both Wenia and Wompi. We are investing a lot in IT, organic projects. According to the instruments I mentioned before, we plan to do at least COP 2 trillion of AT1 from Bancolombia to Ceres, and around $250 million from the Central American operations to Ceres. That's the overall picture in terms of capital deployment. I'm sorry, around the question of double leverage, yes, it's 101. Our limit, according to conversation with risk rating agencies, is 120. We're using the capital as I just mentioned, but it's important to know that we have approximately 20 percentage points of extra leverage if we would like.

Speaker #9: The peace process and will continue with a view of of much strong , strong government . The intervention and the other candidates are more through a more rule of law and a strong position against violence and peace processes , and much more friendly to private initiatives .

Speaker #9: So that's that's a summary . But we after after March 8th , we will have a much clearer picture of who are the candidates with more possibilities on the first round .

Speaker #9: And also we will have the information of what is the composition of the Congress . Regarding your second question , I will pass on to Mauricio to answer , to answer that question .

Speaker #9: Yeah .

Speaker #4: Ernesto , the way to think about the opex growth is what we consider run the business would grow in line with inflation . And what we consider change the business .

Speaker #4: That's what is going to lead us to grow above inflation . 2 or 3 percentage points above inflation . So , so thinking about a growth of inflation plus 2 or 3 would be right .

Andres Soto: Perfect. That's very clear. Thank you. Thank you very much, and congratulations on the results.

Juan Carlos Mora Uribe: Thank you, Andres.

Operator: We'll go next to Ernesto Gabilondo with Bank of America.

Speaker #4: And in terms of the salary increase , we don't have any employees earning minimum wage . But we do have some vendors offering services that are tied to that salary .

Ernesto Gabilondo: Thank you. Hi, good morning, Juan Carlos, Mauricio, and Catalina, and good morning to all your team. Thanks for the opportunity to ask questions. My first question will be on the political and economic outlook. Given the recent salary increase, how do you see the Congress election on 8 March? Can you elaborate on the proposals of the three leading candidates for the next presidential election in May? My second question is on operating expenses. I believe last time you mentioned OpEx growth should be around inflation plus 200 basis points. Just wanted to know if that will be the case for this year, and if you are seeing any impact related to the recent salary increase in personal costs?

Speaker #4: So we may have an increase in expenses from that side . And that is already included in our guidance

Speaker #11: Thank you very much . Juan Carlos and Mauricio and any comments on how much of the OpEx will be related to technology costs , advertising and your three initiatives .

Speaker #11: Nicky . Bumpy , when you

Speaker #4: Well , the most significant figures would be the the figures from capital that I just mentioned for the digital companies . But the breakdown of the general expenses I would say , you know , the the main lines are , of course , it investments also things related with fixed assets and everything that involves the physical distribution network .

Ernesto Gabilondo: Also, if you can elaborate on how much of the OpEx growth will be on a recurring basis, and how much will be related to the technology costs, advertising, all of what you are doing in Nequi, Wenia, and Wompi. Thank you.

Juan Carlos Mora Uribe: Thank you, Ernesto. Let me elaborate a little bit on the political scenario. As you all maybe know, we are 2 weeks away of congressional elections. There are going to be 3 primaries in the same date, that's the 8th of March. It is difficult to try to predict how the Congress is going to evolve in its composition, but there are some facts that is important to take into account. The 5 seats that were given on the peace process of 2016 now expire. Those 5 seats that were in the government coalition are not going to be there anymore. There are 5 seats less, and those seats were supporting the government.

Speaker #4: But also correspondent banking, the mobile digital channels. But we can offer you a more explicit breakdown after the call.

Speaker #11: Perfect. Thank you very much, Mauricio.

Speaker #9: Thank you . Ernest

Speaker #1: Our next question comes from Brian Flores with Citibank

Speaker #12: Hi , Tim . Thank you for the opportunity to to ask a question here . My first one is a follow up on on Judy's question on taxes .

Speaker #12: I just wanted to confirm the number . You said for the effective tax rate is the same as as last year . What I mean by this is close to to 30% .

Speaker #12: I , I understood that it was a bit higher . I thought it was around the 35 , 36% for in your in your guidance .

Speaker #12: Right . And then if I can . My second question just wanted to understand on on Nikki because in your consolidated fee income growth of 10% year over year , how much of this could you attribute to Nicky ?

Juan Carlos Mora Uribe: On the other hand, the composition of the liberal, the several leading parties at this point, there are some forecasts that in the case of the parties that have had a coalition in this case opposing to this government, will probably continue having a strong position. Again, at this point, is very difficult to know. What we know is that probably the Senate will have a composition that is going to be very much balanced and probably with a majority of a coalition that is not supporting this government. That's that we have now. Regarding the propositions of the several candidates, there are...

Speaker #12: I just wanted to know if obviously you're providing more details on the standalone operation you provide guidance now . Just wanted to understand if at some point we should see standalone efficiency ratio to for for Nicky .

Speaker #12: Thank you

Speaker #9: Thank you Brian . Let me let me give you some comments about Nicky . And then I will pass Mauricio to for the for the taxes question .

Speaker #9: As you know , Nicky , now it's operating under the , the umbrella of of Bancolombia And the figures of of Nicky are improving .

Speaker #9: We mentioned that it already passed the the break even point last quarter and the numbers are very good . I mean , in terms of , of loans , it's 1.7 billion , trillion pesos in outstanding loans .

Juan Carlos Mora Uribe: I will just say that there are a clear candidate from the left, and there is going to be a primary to elect another candidate from the left also. We will have probably two candidates running on the first round, representing the left. There is a coalition in the center, nine candidates, center-right, nine candidates, and we will have another strong candidate there. There is a more far-right candidate that is also strong. The proposals are more reflecting in what they are the way of thinking. The candidates from the left will continue on the peace process, and will continue with a view of much strong government intervention.

Speaker #9: And that's around 700,000 clients . The interest rate in the case of , of of Nicky is very close to the , to the maximum rate that we can charge .

Speaker #9: So it's close to 25% . And the cost of funds in the case of Nike's is very low . It's very low . So you know that we found mainly with savings accounts that with with a cost of funds very close to to zero .

Speaker #9: So the , the margin , the financial margin of Nicky is is very high . So also it's going to to know that we announced that we are in the process of separating Nicky and we are expecting to have that operation conclude in the third quarter of this year .

Juan Carlos Mora Uribe: The other candidates are more to, more rule of law and, and a strong position against violence and, and peace processes, and much more friendly to private initiatives. That's a summary, but we after 8 March, we will have a much clearer picture of who are the candidates with more possibilities on the first round. Also we will have the information of what is the composition of the Congress. Regarding your second question, I will pass on to Mauricio to answer that question.

Speaker #9: So you will see a Nicky as a separate entity in in Grupo Cibest S.A. . We expect by the third quarter or maximum for the fourth quarter .

Speaker #9: So you will have the whole information of Nike as , as a separate entity . But what we can say is in the numbers that we have under the umbrella of Bancolombia , Nike is performing very well .

Speaker #9: It's in the loan book , is growing , and now we reach a profitability . Mauricio .

Mauricio Botero Wolff: Ernesto, the way to think about the OpEx growth is what we consider run the business would grow in line with inflation, and what we consider change the business, that's what is going to lead us to grow above inflation, two or three percentage points above inflation. Thinking about a growth of inflation plus two or three would be right. In terms of the salary increase, we don't have any employees earning minimum wage, but we do have some vendors offering services that are tied to that salary. We may have an increase in expenses from that side, and that is already included in our guidance.

Speaker #4: Yeah . Brian , in terms of taxes , is as you just mentioned , so the tax rate for 2026 is in line with the one from 2025 plus 650 billion from the extra tax rate decree , which is under the analysis of the courts .

Speaker #4: So if you combine those , that's when you get to the 35% rate , approximately that you just mentioned

Speaker #1: And our next question will come from Carlos Gomez with HSBC

Speaker #6: Yes . Hello

[Analyst]: Thank you very much, Juan Carlos and Mauricio, any comments on how much of the OpEx will be related to technology costs, advertising, and your three initiatives, Nequi, Wompi, Wenia?

Speaker #9: Hello , Carlos .

Speaker #6: Hi . Yes , I wanted to ask you , first of all of the results . And on the conclusion of the well , the progress in the portal of of Panama .

Speaker #6: So I wanted to ask you , looking forward , not one , two , but more like five , ten years from now , how do you see the group evolving ?

Mauricio Botero Wolff: Well, the most significant figures would be the figures from Capital that I just mentioned for the digital companies. The breakdown of the general expenses, I would say, you know, the main lines are, of course, IT investments, also, things related with fixed assets and everything that involves the physical distribution network, but also correspondent banking, the mobile digital channels. We can offer you a more explicit breakdown after the call.

Speaker #6: Do you think you will concentrate more in Colombia? Do you think? Do you think you will expand more in Central America?

Speaker #6: Perhaps go back to retail in Canada through electronic means or Nike or something ? Do you see yourself more in Venezuela or can Republic ?

Speaker #6: How do you think the group is going to evolve over the next 5 or 10 years ? And again , that's the theme that we should , you know , to expect to continue to invest or we should a more the focus is on on shareholder return and therefore to to return capital as fast as possible to shareholders .

Speaker #6: Thank you

Speaker #9: Thank you Carlos . We we created Grupo Cibest S.A. in order . I remind you , with three main goals . One is to have a more efficient way of managing capital The other is that we could have more flexibility on our on our corporate evolution .

[Analyst]: Perfect. Thank you very much, Mauricio.

Mauricio Botero Wolff: Thank you.

Juan Carlos Mora Uribe: Thank you, Ernesto.

Operator: Our next question comes from Brian Flores with Citibank.

Brian Flores: Hi, team. Thank you for the opportunity to ask a question here. My first one is a follow-up on Yuri's question on taxes. Just wanted to confirm, the number you said for the effective tax rate is the same as last year? What I mean by this is close to 30%. I understood that it was a bit higher. I thought it was around the 35%, 36% for in your guidance, right? Then, if I can, my second question, just wanted to understand on Nequi, because in your consolidated fee income growth of 10% year-over-year, how much of this could you attribute to Nequi? I just wanted to know if obviously you're providing more details on the standalone operation. You provide guidance now.

Speaker #9: And also that we can complement our , our financial services . So to answer directly , your question . We see ourselves developing as a Latin American financial group with presence in several countries , not necessarily a with a operations , a full banking operations , but leveraging our digital capabilities .

Speaker #9: So definitely we see ourselves growing , growing in Latin America . And that's why we are investing at this point , a developing those digital capabilities .

Brian Flores: Just wanted to understand if at some point we should see a standalone efficiency ratio, too, for Nequi. Thank you.

Speaker #9: And Mauricio mentioned that we are having our plans fund those operations in order to continue developing those those capabilities that allow us to move in the in the spectrum of payments .

Juan Carlos Mora Uribe: Thank you, Brian. Let me give you some comments about Nequi, and then I will pass Mauricio to for the taxes question. As you know, Nequi now it's operating under the umbrella of Bancolombia. The numbers are very good. I mean, in terms of loans, it's COP 1.7 billion, trillion pesos in outstanding loans, and that's around 700,000 clients.

Speaker #9: Also on on digital banking , again , we are also developing capabilities as a corporate investment bank Possibility . So we will continue growing , but we need to balance that growth with returning , with giving the returns our our shareholders are expecting .

Speaker #9: And we have declared that we will target an ROE around a 1,718% . So with with that target . So we continue , we will continue returning to shareholders .

Juan Carlos Mora Uribe: The interest rate in the case of Nequi is very close to the maximum rate that we can charge, so it's close to 25%. The cost of funds in the case of Nequi is very low. It's very low. You know that we fund Nequi mainly with savings accounts, that with a cost of funds very close to 0. The margin, the financial margin of Nequi is very high. Also, it's going to know that we announced that we are in the process of separating Nequi, and we are expecting to have that operation conclude in Q3 of this year.

Speaker #9: What they are expecting in terms of ROE . But we will continue expanding our footprint . We are , as you know , in Colombia , we have a a market presence that that is important .

Speaker #9: So in Colombia . We will complement our services with other or digital operations . And in other countries we will look for opportunities , even organic or inorganic possibilities .

Speaker #9: In the mid and long term, cars

Speaker #1: And we'll go next to Alonzo Aranburu with BTG

Speaker #13: Yes . Hi . Good morning . Thank you for the call . I wanted to ask about there's a recent announcement from the government regarding a proposal I guess , force lending from banks to fund emergency spending .

Juan Carlos Mora Uribe: You will see Nequi as a separate entity in Grupo Cibest. We expect by Q3 or maximum for Q4, you will have the whole information of Nequi as a separate entity. What we can say is, on the numbers that we have under the umbrella of Bancolombia, Nequi is performing very well. It's, the loan book is growing, and now we reach profitability. Mauricio?

Speaker #13: I don't know if this is something already approved. Can you give us some color on this? And what would be the impact for Colombia?

Speaker #13: Thank you

Speaker #9: Thank you . Alonso . That is not something that is approved . Now there was a there were some comments coming from the government that they are considering the possibility of mandatory investments for the financial services , but there is not yet an official Document or an official issue about that .

Mauricio Botero Wolff: Yeah, Brian, in terms of taxes, is as you just mentioned. The tax rate for 2026 is in line with the one from 2025, plus COP 650 billion from the extra tax rate decree, which is under the analysis of the courts. If you combine those, that's when you get to the 35% rate, approximately that you just mentioned.

Speaker #9: That particular tax. So, as you know, there are discussions about equity tax for legal entities in Colombia. And also, they mentioned the possibility of those mandatory investments.

Speaker #9: But there is there is not an official document yet about that . So we will expect that to happen this week . To have the the official document decree from government announcing what they are going to do regarding the taxes that they are planning under this new economic emergency , that they declare three weeks ago

Operator: Our next question will come from Carlos Gomez with HSBC.

Speaker #13: Okay . Thank you . And any estimate on what could be the impact if they declare , I don't know if they mentioned some parameters about this .

Carlos Gomez: Yes, hello.

Juan Carlos Mora Uribe: Hello, Carlos.

Speaker #13: This forced investment . So any potential estimate you can have on the potential impact of this .

Carlos Gomez: Hi. Yes, I wanted to ask you first, congratulations on the results and on the completion of the well, progress in the disposal of Panama. I wanted to ask you, looking forward, not one, two, but more like five, 10 years from now, how do you see the group evolving? Do you think you will concentrate more in Colombia? Do you think you will expand more in Central America, perhaps go back to retail in Canada through electronic means or Nequi or something? Do you see yourself more in Venezuela or the Dominican Republic? How do you think the group is going to evolve over the next five or 10 years?

Speaker #9: It's difficult to to to know because as just to elaborate a little bit on , on on those mandatory investments instrument is that they ask the financial invest in government papers and then they they direct those proceeds to Specific sectors .

Speaker #9: But it's very difficult to have an opinion if we don't have what is the amount that they are planning or and what is the interest rate that those papers are going to earn .

Carlos Gomez: Again, does that mean that we should, you know, expect to continue to invest, or we should see a more that the focus is on shareholder return and therefore to return capital as fast as possible to shareholders? Thanks.

Speaker #9: And we don't have that information . So I am not at this point with I don't have at this point enough information to to have a position .

Speaker #9: Alonso .

Speaker #13: Okay . Thank you very much .

Juan Carlos Mora Uribe: Thank you, Carlos. We created Grupo Cibest in order, I remind you, with three main goals. One is to have a more efficient way of managing capital. The other is that we could have more flexibility on our corporate evolution and also that we can complement our financial services. To answer directly your question, we see ourselves developing as a Latin American financial group with presence in several countries, not necessarily with operations, a full banking operations, but leveraging our digital capabilities. Definitely we see ourselves growing in Latin America, and that's why we are investing at this point developing those digital capabilities.

Speaker #9: Thank you

Speaker #1: And this now concludes our question and answer session . I would like to turn the floor back over to Juan Carlos Mora for closing comments

Speaker #9: Before closing a I want to highlight the strong results achieved in in 2025 , which underscores our strategic progress . With this , we invite you to join us for the upcoming first quarter results conference call , and we will look forward to your participation .

Speaker #9: We wish you a very good day

Juan Carlos Mora Uribe: Mauricio mentioned that we are having our plans fund those operations in order to continue developing those capabilities that allow us to move in the spectrum of payments, also on digital banking. Again, we are also developing capabilities as a corporate investment bank possibility. We will continue growing, but we need to balance that growth with returning with giving the returns our shareholders are expecting, and we have declared that we will target a ROE around 17%, 18%. With that target, we will continue returning to shareholders what they are expecting in terms of ROE, but we will continue expanding our footprint.

Juan Carlos Mora Uribe: We, as you know, in Colombia, we have a market presence that is important. In Colombia, we will complement our services with other digital operations. In other countries, we will look for opportunities, even organic or inorganic possibilities in the mid and long term.

Operator: We'll go next to Alonso Aramburú with BTG.

Alonso Aramburú: Yes. Hi, good morning. Thank you for the call. I wanted to ask about, there's a recent announcement from the government, regarding a proposal to, I guess, force lending from banks, to fund emergency spending. I don't know if this is something already approved. Can you give us some color on this, and what would be the impact for Bancolombia? Thank you.

Juan Carlos Mora Uribe: Thank you, Alonso Aramburú. That is not something that is approval now. There were some comments coming from the government that they are considering the possibility of mandatory investments for the financial services, but there is not yet an official document or an official issue about that particular tax. As you know, there are discussions about equity tax for legal entities in Colombia, and also they mentioned the possibility of those mandatory investment, but there is not an official document yet about that.

Juan Carlos Mora Uribe: We will expect that to happen this week, to have the official document and decree from the government announcing what they are gonna do regarding the taxes that they are planning under this new economic emergency that they declared three weeks ago.

Alonso Aramburú: Okay, thank you. Any estimate on what could be the impact if they declare. I don't know if they've mentioned some parameters about this forced investment. Any potential estimate you can have on the potential impact of this?

Juan Carlos Mora Uribe: It's difficult to know because, just to elaborate a little bit on those mandatory investments, the instrument is that they ask the financial institutions to invest in government papers. They direct those proceeds to specific sectors. It's very difficult to have an opinion if we don't have what is the amount that they are planning or what is the interest rate that those papers are going to earn, and we don't have that information. I am not, at this point, I don't have, at this point, enough information to have a position, Alonso.

Alonso Aramburú: Okay. Thank you very much.

Juan Carlos Mora Uribe: Thank you.

Operator: This now concludes our question and answer session. I would like to turn the floor back over to Juan Carlos Mora for closing comments.

Juan Carlos Mora Uribe: Before closing, I want to highlight the strong results achieved in 2025, which underscores our strategic progress. With this, we invite you to join us for the upcoming Q1 results conference call. We look forward to your participation. We wish you a very good day.

Operator: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day.