Grupo Cibest S.A.

Good morning, ladies and gentlemen, and welcome to Groups to Best Banco Columbia Second Quarter 2025 Earnings Conference Call. My name is Christine, 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 touch-tone phone. Please note 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 uncertainties. Consequently, there are factors that could cause actual results to differ materially from those indicated in such statements, including changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products by other companies, lack of acceptance of new products or services by our targeted clients, changes in business strategy, and various other factors that we describe in our reports filed with the FCC. With us today is Mr. Juan Carlos Mora, Chief Executive Officer, Mr. Mauricio Botero-Wolf, Chief Strategy and Financial Officer, Mr. Rodrigo Prieto, Chief Risk Officer, Mrs. Catalina Tobon, Investor Relations, and Capital Markets Director, and Mrs. Laura Clavijo, Chief Economist. I will now turn the call over to Mr. Juan Carlos Mora, Chief Executive Officer. Mr. Juan Carlos, you may begin.

Good morning. Welcome to Grupo CVS Second Quarter Results Conference Call. Please go to slide three. I am pleased to share our first results as Grupo CIBEST, our new holding company. Our formation involved legal transactions, asset transfers, and mergers that led Bancolombia to transfer Banismo, Banco Agricola, BAM, Neki, Renting, Wenya, Wompi, and other investments to Grupo CIBEST. This transformation did not impact our operations, asset portfolio, debt structure, or revenue generation capacity. Therefore, the consolidated financial results reported under Grupo CIVEST correspond to those that Grupo Bancolombia will have achieved if the corporate changes implemented on May 16th have not occurred. Our main goal is to optimize capital allocation, increase corporate flexibility, and boost value creation and distribution, such as through our ongoing share repurchase program launched on July 17th with the goal to buy up to 1.3 trillion pesos in a combination of common, preferred, and ATRs until June 24, 2026. as of July 31st, 5.2% of the total shares had been repurchased. Now, please proceed to slide four. With the creation of Grupo CIVEST, we consolidate our position as a solid regional financial group with a strong footprint. We offer an integrated client-focused value proposition by delivering customized financial solutions to a wide range of clients in our operating countries. Our approach adapts to local market trends while drawing on regional strengths, promoting diversification and supporting sustainable long-term growth. Additionally, the corporate structure supports efficient capital allocation for both organic and inorganic growth, as well as various organizational developments with the aim of creating value for stakeholders. In addition, our ability to expand complimentary businesses supported by customer insights and data access contributes to our value proposition and competitive advantages. Now, please proceed to slide five. We offer a wide range of financial services covering banking intermediation, transactional and banking services, asset management, treasury and capital markets amongst others throughout Colombia and Central America. As of the second quarter of 2025, we serve over 33 million clients. Colombia remains our core market in which Bancolombia leads the financial sector with over 18 million clients and a market share of 28% in loans and 26% in deposits. At a consolidated level, Bancolombia integrates fiduciary, brokerage, investment banking, real estate fund, and offshore banking services. Our Central American operations offer valuable diversification. Banco Agricola leads in El Salvador, Banismo is second in Panama, and BAM ranks fourth in Guatemala, each with growth potential in their markets. In addition to our traditional banking services, we are continuously enhancing our digital and transactional ecosystem. Neki, our digital bank, now serves more than 25 million clients. with an activity ratio approaching 80%. Wamping, our payments platform, facilitates both pay-ins and pay-outs for small and medium-sized enterprises. Furthermore, Wenya is strengthening our presence in the digital asset sector throughout initiatives such as COPW, a stablecoin backed by the Colombian peso. Now, please proceed to slide six. From a capital allocation standpoint, Grupo CIVEST's principal entities are its four banks. Bancolombia standalone accounts for 48% of the holdings equity and 66% of the total assets as of June, while Banismo, BAM and Banco Agricola comprise the remaining portions. Moreover, returns over capital are mixed. Bancolombia standalone recorded a 26% pro forma ROE in the second quarter, calculated over the average equity of the first and second quarters, assuming the transaction had been executed by year end 2024, which implies a lower amount as per the capital deconsolidation that took place. What this metric clearly reflects is the merits of the corporate evolution demonstrating more efficient capital allocation on the main operational entity, thereby driving value creation for shareholders. On the other hand, Banco Agricola continues to deliver high returns that significantly exceed its relative size. outperforming both Banismo and BAM. Now, please proceed to slide seven. In the second quarter of 2025, we achieved robust financial performance, aligned with our long-term corporate strategy and supported by our operational strengths. Return on equity increased to 17.5%, primarily due to strong net income resulting from and improved net interest margin and reduced provision expenses. Notably, the net interest margin rebounded to 6.6%, driven by growth in both loans and investments, which will be discussed in further detail. Of risk of 1.6% and declining non-performing loan ratios highlight the ongoing enhancement of our asset quality. It is also noteworthy that deposits continue to exceed loan growth on both quarterly and annual basis, maintaining a notably low cost despite increased competition. The double leverage ratio for Grupo CIVIS is at 105%, indicating solid creditworthiness and providing capacity for further expansion. Furthermore, NECI reported loans totaling 1.1 trillion pesos, reflecting a substantial 4.7-fold increase over the previous year. This growth has also driven further cost efficiency, which we'll be discussing in more detail later. I now hand over to Laura Clavijo, Chief Economist, for a summary of the macroeconomic landscape. Laura.

Thank you, Juan Carlos. If you could please turn to slide nine. The Colombian economy continued to gain momentum during the second quarter, driven by strong domestic demand, household consumption, and a modest recovery in investment. The ISE, a monthly indicator of economic activity, expanded at an annual rate of 2.7% in May. Meanwhile, our now-cast-bound Colombia, based on transactional data, suggests the economy grew by 2.9% during the first half of 2025. As a result, We maintain our GDP growth forecast of 2.6% for this year and 3% for 2026. Key macro indicators, including inflation, unemployment, and consumer confidence, have continued to stabilize and have thus far mitigated the impact of a volatile global environment and broad-based risk aversion. Nonetheless, both monetary and fiscal policy face significant challenges ahead. The central bank has adopted a cautious stance throughout much of 2025, Despite inflation falling to 4.8% year-over-year in June, the monetary authority has kept the policy rate unchanged at 9.25%. These decisions reflect the need to anchor inflation expectations, anticipate potential price pressure from a higher-than-expected minimum wage in 2026, and prevent second-round effects. We expect inflation to end the year above 5%, with interest rates maintaining a predominantly restrictive posture. On the fiscal front, Colombia faces mounting challenges in both the short and medium term. In recent years, the fiscal deficit has deteriorated, widening from 4.2% of GDP in 2023 to 6.7% in 2024 and is projected to exceed 7% in 2025. Overly optimistic revenue projections, high interest payments, rigid budget structures, and reluctance to implement necessary spending cuts led to the activation of the escape clause of the fiscal rule for the 2025-28 period. Furthermore, the generous 2026 budget proposal underscores ongoing concerns about fiscal sustainability. As a consequence, credit rating agencies Moody's and S&P recently downgraded Columbia's sovereign rating, a move that had largely been priced into sovereign assets, which have weakened in line with increased risk premium. Nevertheless, Columbia continues to enjoy a strong reputation in financial markets. with a solid track record of debt repayment and credibility that compares favorably to other countries in the region. Please turn to slide 10. Turning to Central America, most countries are closely monitoring slower than expected U.S. growth, new tariff announcements, and potential policy shifts that could affect remittance flows. El Salvador is expected to grow by approximately 2.2%, supported by low inflation and robust investment in infrastructure and tourism. Country risk has improved significantly in recent years, and a newly signed IMF agreement has placed fiscal consolidation at the forefront of policy. Guatemala, known for its macroeconomic stability, is projected to grow 3.6% this year, driven by strong domestic demand that could help cushion a potential slowdown in exports. Finally, Panama is gradually recovering from the 2024 copper plant shutdown and disruptions to its canal operations. Growth is expected to reach 3.7% in 2025, underpinned by increased infrastructure investment and solid tourism activity. I will now hand over the presentation to Mauricio Botero, who will provide further insights into the 2025 second quarter results. Mauricio?