Grupo Cibest S.A.

Good morning, ladies and gentlemen, and welcome to Grupo Sebest, Bancolombia's fourth quarter 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 one on your touch-tone 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 and future filings, in 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 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 Botera-Wolf, Chief Strategy and Financial Officer. Mr. Rodrigo Preto, Chief Risk Officer. Mrs. Catalina Tobon, Investor Relations and Capital Markets Director. And Ms. Laura Clebijo, Chief Economist. I will now turn the call over to Mr. Juan Carlos Mora, Chief Executive Officer. Please go ahead.

Good morning. and welcome to Grupo CIVEST Q4 conference call. Please turn to slide two. Even with fiscal difficulties and volatile markets caused by trade ties and geopolitical issues, Colombia experienced steady economic growth in 2025, largely driven by consumer spending and government expenditures. Raising 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, new holding structure improved our capital allocation enabling higher dividends, share buybacks, and greater flexibility as shown by BANISMO recent divestment. Furthermore, the agreement to sell BANISMO resulted in a non-cash impairment charge and asset held for sale accounting during the quarter, which affected both quarterly and annual financial result, as will be detailed further. Thus, annual net income totaled 3.8% and ROE reached 9.1%, reflecting the impact of the impairment. However, excluding this one-off accounting effect, Grupo Cires will have delivered 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 NEKI and Wampi reached breakeven in the fourth quarter, another key milestone as these businesses complete our value proposal and are key drivers of SEBE's long-term returns. Also, yesterday we announced to the market our proposed dividend to be submitted for shareholders' approval, amounting to 4.3 trillion pesos, equivalent to 4,512 pesos per share to be paid on four installments starting April 1st. Despite one-off effects from Banismo's 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. The market has acknowledged the value generated by our transformation into Group of Cities 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 ATRs 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, 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 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. 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. 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, and 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?

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 macroenvironment 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 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 continues to thrive, even as primary activities such as mining, agriculture, and construction underperformed 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. 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 campaigns. 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%, 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. 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. 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 offers. 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. Now, please let me turn the presentation to Mauricio, who will present CBIT's 2025 performance.