Grupo Cibest S.A. (CIBEST) Earnings Call Transcript & Summary

Good morning ladies and gentlemen, and welcome to Grupo Cibest Bancolombia Second Quarter 2026 Earnings Conference Call. My name is Melissa, and I will be your operator for today's call. [Operator Instructions]. Please note that this conference call 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 risk and uncertainty. Consequently, there are factors that could cause actual results, 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. Rodrigo Prieto, Chief Risk Officer, Juan Carlos Mora, Chief Executive Officer. Sir, please go ahead.

Good morning. Lower political uncertainty following Colombia's electoral process has helped reduce sovereign risk premiums. However, fiscal sustainability remains a key challenge and will require a credible adjustment path. The economy continues to expand at a moderate pace, and we estimate GDP will grow 2.7% in the second quarter, supported by resilient private consumption and sustained public spending. Despite a challenging environment supported by a NIM close to 8% and solid asset quality that kept cost of risk at 1.6% and continued efficiency gains. Together, these factors drove a historic quarterly ROE of 28.7%. Moreover, we are pleased to see how these results reflect the success of our strategy and the creative advantage, which is built on a value [ credit risk management ]. Second, between the loan and investment portfolios and maximize revenue generation across economic and risk cycles. Third, they prove our commitment to operational efficiency. Ultimately, these results reflects our ability to create value throughout the successful Banistmo divestment, [ Pam storm round ], Nequi's growing contribution the strategic use of capital instruments to strengthen our capital structure and the extraordinary dividend proposal acquisition of 100% of Avista, Colombia. The strengthening our capabilities in payroll lending and expanding access for risk lending segment with strong growth and cross-selling potential, complementing our existing offering and expanding our ability to serve this market. By combining Avista's proven technology and business model with Bancolombia's funding advantages, we see a clear path to improve profitability and potentially scale the platform across Central America. I will now hand the call over to Laura Clavijo, our Chief Economist, for an overview of the macroeconomic landscape. Laura?

Thank you, Juan Carlos. If you could please proceed to slide for the moderation in growth dynamics. Public spending and private consumption continue to support overall growth activity. However, elevated interest rates, persistent inflationary pressures and weak private investment remains significant headwinds. Reflecting on this backdrop, we have revised downward our GDP growth forecast for 2026 from 2.9% to 2.6%. Inflation remains one of Colombia's most present macroeconomic challenges. At the end of the second quarter, inflation surpassed 6.1%, placing it among the highest Latin America. Underlying price pressures remain persistent particularly in the services sector, while the risk of a severe El Nino event poses additional upside pressures on energy and food prices as well as on inflation expectations. As a result, the Central Bank raised its policy rate by 75 basis points to 12% at its June meeting. According to the bank's staff projections, inflation is expected to reach there. Accordingly, we continue to expect the policy rate to reach 12.8 hikes, a higher for longer interest rate environment is likely to prevail throughout 2027. From an external perspective, Colombia continues to benefit from several important strengths. Favorable commodity prices, resilient exports and record remittance inflows are supporting both external accounts and domestic demand. Meanwhile, the Colombian peso has appreciated significantly any more than 15% year-to-date, driven by carry trade flows and strong market optimism. While this appreciation reflects improved investor sentiment, it may also weigh on export competitiveness. In addition, global trade tensions, geopolitical uncertainty and tighter financial conditions remain key risks that could affect capital flows, financing costs and broader market sentiment. Consequently, the external environment is likely to remain a source of volatility over the coming quarters. Fiscal dynamics also remain a key source of vulnerability. We expect the central government deficit to widen to 6.5% of GP in 2026, a strong expenditure execution, structural rigidities and public finances and rising financing needs continue to constrain the pace of fiscal adjustments. While authorities are expected to pursue gradual consolidation over the medium term, elevated deficits and rising public debt levels underscore the importance of advancing structural reforms that strengthen fiscal sustainability and reinforce investor confidence. Looking beyond 2026, Colombia's economic outlook under Abelardo delaspriegas administration is likely to be characterized by a combination of opportunities and structural challenges. The start of a new political cycle could help reduce uncertainty and support a gradual recovery in investment driven by improved business confidence, infrastructure development, housing activity and opportunities in natural resources and financial services. However, the strength and durability of the recovery will ultimately depend on the successful reduction of inflationary pressures, the normalization of interest rates on the restoration of fiscal credibility. If you could please proceed to Slide 5. I Central America's outlook remains broadly resilient despite a more challenging external environment. In El Salvador, growth is expected to moderate to 2.9% in 2026. But economic activity should remain supported by infrastructure investment and construction, partially offsetting weaker remittance inflows and rising inflation pressure. Guatemala continues to benefit from infrastructure projects and institutional reforms that encourage private investments supporting solid economic performance despite softer remittance growth and higher inflation. Meanwhile, Panama is expected to grow at a pace of just under 4%, supported by Canal related activity, logistics, tourism and construction even as global disruptions online-related risks and rising unemployment present ongoing challenges. Now please let me turn the presentation to Mauricio, who will present Cibest's quarterly performance.

Thank you, Laura. Please proceed to Slide 7. Our gross loan portfolio was almost flat over the quarter as expected due to the uncertainty created by the electoral process. However, on an annual basis, this represents a 5.7% growth or 9.6% net of FX, which is in line with our annual projections. Commercial loans were stable over the quarter and grew slightly over the year. The mortgage portfolio kept on growing at 1.8% during the quarter and posted a 12% growth over the year. Meanwhile, consumer loans expanded by 0.5% during the quarter and 7.4% over the year, supported by a strong growth in vehicle lending, Nequi and credit cards. Please proceed to Slide 8. Bancolombia and Nequi led credit origination. The latter reflecting the success of our strategy to deepen penetration among retail clients, which continues to generate a strong and consistent growth. Our U.S. dollar loan portfolio in offshore operations continues to expand at a robust pace. These operations serve as strategic cross-border lending platforms for the group, allowing us to leverage our regional presence and efficiently provide foreign currency funding to clients across different geographies. As of June, BAM's cross-border loan portfolio reached $580 million, which represents a 56% growth over the year, while Banco Agricola cross-border portfolio totaled million, growing 42%. These figures are included exclusively for business performance purposes and are not part of their accounting balances. Please proceed to Slide 9. Over the quarter, deposits declined 0.2%, which represents a 1.2% growth net of FX Year-over-year, deposits increased 7%, which represents a 12% growth net of FX aside growth, both continue to demonstrate resilience amid the higher interest rate environment in Colombia because of deposits increased from 4% to 4.4%, mainly reflecting higher remuneration on savings accounts, which accounted for most of the funding growth during the quarter while remaining seeing significantly less expensive than time deposits. Despite 2 policy rate hikes totaling 200 basis points during the first half of the year, Bancolombia's stand-alone cost of deposits increased by only 64 basis points over the to the reference rate and represents 57% of our consolidated funding base, reaffirming our ability to attract and retain a stable cost-efficient funding. Please proceed to Slide 11, performance from both lending and investment portfolios. Lending NIM expanded from 7.8% to 8.3%, mainly reflecting higher asset yields in Colombia. Our asset-sensitive balance sheet continue to investment NIM delivered a very positive performance, rising from 1.8% to 6% and our strong liquidity position, supported by robust funding and still moderate loan growth, enable us to capitalize in Colombia's fixed income markets. During the quarter, greater activity from international investors pursuing current trading strategies supported transaction volumes and related intermediation revenues, contributing to the performance of our investment portfolio, increased volatility partly associated with the evolving electoral backdrop created favorable trading and positioning opportunities in test-related instruments. Therefore, NIM expanded by 91 basis points in the quarter from 7% and to 7.9%. [ Banco Agricola ] and BAM also reported NIM expansion, supported by higher loan portfolio yields, and mark-to-market gains on their investment portfolios, particularly in securities issued by their respective governments. Please proceed to Slide 12. The Net fee income continued to deliver solid growth, increasing 9.9% over the quarter and 17.7% over the year. This growth was supported by the result of bank assurance particularly through our partnership with Sura. On a year-over-year basis, growth was supported by credit and debit cards and payments, reflecting broader card penetration and higher transaction volumes Banking services also contributed positively, primarily through digital banking fees. Fee expenses, on the other hand, decreased during the quarter and during the year, improving from ongoing efficiency initiatives. The fee income ratio stood at 18.3% and mainly reflecting a higher contribution from the net interest income due to the NIM expansion that I just explained. Please proceed to Slide 13. Now I would like to highlight the continued progress of our digital ecosystem, where scale, connectivity and innovation are increasingly reinforcing each other. OMP continues to expand its role in the payments ecosystem, reaching new merchants and broadening its value proposition through solutions such as neck negotiates and in-person payments, supporting the platforms profitability and long-term growth potential. At the same time, [indiscernible] is gaining momentum, driven by rapid growth in issuers and transaction volumes. The successful rollout of [ Genia ] Connect and the launch of US BW are strengthening our capabilities in digital assets, cross-border transactions and future tokenization opportunities. Moreover, through its integration with wood services. Together, these businesses are creating a more connected ecosystem that accelerates innovation, expand customer relationships and unlocks new opportunities for sustainable growth fully aligned with Grupo Cibest's long-term strategy. Please proceed, Colombia. Nequi is expected to begin operating as an independent financial entity within Grupo Cibest its liabilities and contracts associated with the products and services currently offered under the Nequi brand. Importantly, both [indiscernible] changes on how they access or use Nequi's products and services and experience within the app as well as customer service channels. Nequi continued to strengthen its ecosystem on depreciation during the second quarter, supported by sustained growth in users, transactionality, deposits and lending. The monetize user base increased to $18 million, while the activity ratio reached 81.6%, Together, these metrics demonstrate deeper customer engagement. Broader adoption and value-added products and services, and Nequi's growing ability to convert its extensive user base into sustainable revenue opportunities. Deposits closed at COP 7.6 trillion, increasing 12% in the last quarter, recovering from the seasonal decline observed at the beginning of the year. This performance reinforces NEE's position as the leading digital savings and transactional platform while strengthening its funding base to support [indiscernible] reached 2.2 trillion growing 14% quarter-over-quarter, driven by low ticket loans originated through its scalable digital model. Asset quality remained in line with expectations supported by disciplined underwriting and collection capabilities. Cost of risk reflects net management importantly, both net no changes with the action. Total income reached COP 492 billion, increasing 16% quarter-over-quarter while financial income grew 19%, supported by loan portfolio expansion and higher investment income. Net fee income increased on stronger transactionality and broader adoption of value-added services. Please proceed to Slide 16. Net provision expense amounted to COP 1 trillion in the second quarter, representing a 17% quarterly decline reflecting the overall good performance of the loan portfolio across our geographies. The reduction was mainly driven by recoveries from specific clients. As a result, the quarterly annualized cost of risk declined to 1.6%. These positive effects more than offset higher provisioning in consumer loans as well as in the SME and commercial segments, where deterioration remains concentrated among specific clients rather than reflecting a broader decline in credit quality. When broken down by entity, Bancolombia led the quarterly reduction supported by a stable economic environment and significant recoveries from specific clients. BAM reported broadly stable provision expenses as newer loan vintages continue to improve the portfolio mix. By contrast, Banco Agricola recorded higher provisioning consistent with the loan growth in segments with greater risk appetite and higher risk-adjusted returns. Please proceed to Slide 17. In line with the healthy performance observed in recent quarters, overall asset quality remained well contained from a new past due loan formation standpoint, the volume of loans becoming delinquent declined during the quarter. Despite some pressure in consumer loans, mainly credit cards and personal loans, as well as some deterioration in mortgages, the overall 30-day and 90-day NPL ratios remained broadly stable, while commercial loans ratios improved slightly. Consistent with this performance, the distribution remained relatively stable during the quarter. Stage 2 loans increased modestly, mainly reflecting commercial clients in specific economic sectors under closer monitoring due to foreign exchange exposure and potential effects from El Nino. Meanwhile, S3 loans declined slightly explained by the release of clients that were previously classified as in default. Please proceed to Slide 18. Operating expenses declined 10% over the quarter. mainly reflecting the 374 billion wealth tax recognized in the previous quarter under Colombia's second economic emergency decree. On a year-over-year basis, operating expenses increased by only 1.9%, supported in part by the appreciation of the Colombian peso well contained labor expenses the absence of nonrecurring costs associated with the expiration of Grupo Sides, continued cloud migration efficiencies and lower contact center operating costs. In Colombia, our efficiency agenda remains focused on leveraging artificial intelligence in collections and contact center channels, automating operational workflows, among others. By entity, BAM continued to show the most significant improvement supported by its profitability and cost optimization strategy with its efficiency ratio declining from 4.5% to 42.2% in the quarter. Banco Agricola also improved from 47.9% to 47% and Overall, the consolidated cost-to-income ratio reached 43% in the quarter. Please turn to Slide 19. The Grupo Cibest shareholders' equity grew 4.8% over the quarter, mainly driven by net income generation. On the other hand, Bancolombia's stand-alone Common equity Tier 1 ratio stood at 12.1% and total solvency ratio reached 13.9% as of June an optimal level to support growth while enhancing profitability. At this point, I would like to highlight the broad set of initiatives we're now deploying to manage capital more efficiently across the group, taking advantage of our new corporate structure under the holding company. First, we continue executing the share buyback program approved in April, which remains effective for 3 years. we have already repurchased more than 17 million shares amounting to 67 billion during the last 12 months. Second, we are pursuing corporate development and intra-group capital transactions, such as capital contributions to Nequi AT1 instruments and subordinated debt designed to optimize capital allocation and enhance return for the holding company. Third, we have designed a disciplined capital and liquidity management framework that allows Grupo Cibest to optimize capital distributions to shareholders while preserving healthy double leverage ratios to support future growth. Notably, we will propose a $1.2 trillion extraordinary dividend with the proceeds from the Banistmo sale through in addition to our annual dividend distributions, demonstrating our continued focus on capital efficiency and long-term value creation for shareholders. Please turn to Slide 20. The Net income reached COP 2.7 trillion during the quarter, increasing 87% quarter-over-quarter. As a result, annualized ROE stood at 29% with Bancolombia posting a stand-alone ROE of 36%. Our Central American operations continued to generate strong returns in 2026, supported by the strategic advantages of Grupo Cibest cross-border platform. Access to efficient funding through our international banking operations supports profitable loan growth and enhances reported profitability with both entities delivering ROEs of in the second quarter. We are particularly encouraged by BAM's sustained momentum and improved performance during the year, supported by improved asset quality and origination standards. Higher margins and a record low cost-to-income ratio of 43%, reinforcing its contribution to Grupo Cibest's overall profitability and efficiency. With this, I will now hand the presentation back to Juan Carlos. Juan?

Thank you, Mauricio. Please turn to Slide 21. Grupo Cibest continue advancing its business with purpose strategy with cumulative disbarment reaching COP 364 trillion since 2020. Equivalent to 58% of the group's adjusted 2030 target of INR 629 trillion. Pumps 100 anniversary was another important milestone. Celebrating a century of contribution to Guatemala's economic development and underscoring its institutional legacy, strong governance and long-term value creation with Grupo Cibest. On the social front, and Colombia was recognized by Merco Talento 2026 as Colombia's best company to work for and the top employer in the financial sector. It's talent and culture team was also ranked first in the country for the third consecutive year. reflecting our commitment to professional development, employee well-being, diversity and inclusion. Please turn to Slide 23. Reflecting the group's strong results, we have updated selected 2026 guidance metrics. Loan growth guidance remains unchanged at 7% to 8%, while NIM guidance has been raised to 7.4% to 7.6%, supported by strong margin performance. We maintain our cost of risk guidance at 1.6% to 1.8% as credit quality continues to perform in line with expectations. For efficiency, we now expect the ratio to be around 48%, reflecting positive operating leverage as revenue growth continues to outpace expenses. As a result, we are raising our ROE guidance to 21% to 22%. Please now turn to Slide 24. In closing, One year after our transformation into Grupo Cibest, our results reflect the strengthening of our strategy and business model. Over the past year, our ATR price increased by more than 90%, demonstrating the market's recognition of the value we have created while ROE reached 21.5% in the first half of 2026. We remain fully committed to unlocking additional value for our shareholders. The proposed extraordinary dividend is another step in that direction, enhancing shareholder return while preserving disciplined capital management. Looking ahead, a more favorable macroeconomic outlook and improved security conditions could support a recovery in investment and create better conditions for economic growth. This concludes today's presentation. We will now be happy to take your questions.

[Operator Instructions]. Our first question comes from the line of Yuri Fernandes with JPMorgan.

Mauricio, Juan Carlos, everyone, and congrats for another good quarter, all the trajectory of the bank, very impressive 29 ROEs. We know there were some kind of onetime items, but even excluding a pretty strong quarter. So congrats. I have a question regarding your guidance for the year. And I would like to understand a little bit how you see the second half of the year versus the first half. First half was very strong this quarter. You had the wealth tax that was a negative here as well. Historically, maybe second half is seasonally better than the first half. So just asking, do you think like the second half can be as strong as the first half or stronger? Like what is your overall view here? And how this compares to your guidance? Because like in our exercise, if you were to assume the 22 ROE that you had at the top of the guidance, this implies a slowdown in the second half, but I don't know if this is the case. And then I have a second question regarding asset quality. If you can comment on the earthquake, if you see any impact for asset quality. And also the stronger currency, how do you see these hurting exporters in Colombia? And how this compares to your guidance of cost of risk?

Thank you, Yuri, and thank you for your words. Regarding the second half of the year, as you said, usually the second half of the year, it's better than the first half. There are more demand the company is prepared for the end of the year season. So usually, it's a better period. And we expect that year that to be the case. We need to take into account that there are factors that could have some impact on the second half results. But overall, we expect a strong quarter in line with the -- what is happening in the first half. meaning that we even expect a higher credit demand. The big question is how the risk, the credit risk is going to behave and what is going to be. And that's related to your second question. There are some factors including El Nino that in Colombia, creates an effect on no rain, and that could have an effect on inflation. And the other is the yesterday earthquake that also have some impact. So we think it's going to be a strong quarter that our guidance. We maintain even with those effects, our guidance for the full year and ROE on and a NIM that is going to be positive. So overall, we think that guidance could have a little at risk. But in general, it will be in line with the first with the first semester. I don't know, Mauricio, if you want to complement something?

Hi, Yuri. If you look at the first half ROE, we are in 21.5%, which is right in the middle of the range of the guidance for the whole year. So yes, there could be some downside risks around asset quality, but there are also some upside risks. So just to project the guidance between 21% and 22% should be in line with the projections. And just to complement regarding the strong peso, that also could have some effect on some exporters that could also affect the cost of risk. So those are the elements that we are thinking into account to support our guidance for the full year.

No, super clear, Juan Carlos. So basically, better margins, maybe better volumes but the main risk is the asset quality, cost of risk. And when we put all those things together, you are comfortable with 212 guidance. Super clear.

Our next question comes from the line of Ernesto Gabilondo with Bank of America.

Thank you. Juan Carlos, Mauricio and Catalina, congrats in your results, and thanks for the opportunity to ask questions. My first question is also in terms of the NIM trends. So we are seeing we can have interest rates higher for longer and maybe that this could last for the first half of next year. So do you see potentially look into some alternatives to reduce the sensitivity to interest rates I don't know if you will be evaluating derivatives or change in the loan mix. And I believe today for every 100 basis points increase in the average repo rate, it improves NIMs by around 20 basis points. So how much could this sensitivity be reduced over the next months? So that's my first question. Then my second question is on your sustainable ROE, as you pointed out, ROE could be between 21%, 22% and likely that to translate into 2027. But what should we think about the sustainable ROE when you have an emotion in interest rates? And my last question is on NII. We noted asset quality deterioration in terms of NPLs and cost of risk on a sequential basis. We have the NPL at 3.7%, cost of risk get up 14.6%. So what would be the maximum levels that both ratios should be reaching and what level of what ratios would you be more conservative in your loan growth appetite

Thank you, Ernesto. Let me start for the second -- your second question. I will also take your third about Nequi, and I want to ask Mauricio to give you some comments about the NIM. And I am going also to take the opportunity of your question to ask Laura, our Chief Economist, to give her view on interest rates and on inflation that I think it is important to give you background to your question. So regarding sustainable ROE, we think that in the level of '21, '22, we can think on a sustainable ROE on those levels. We know that interest rates are going to go down probably by the second half of next year, and Laura will elaborate on that in a moment. But even with that, we think with the loan volume that we are building and the development of our strategy, we are able to deliver ROE above 20%. So we firmly believe that we can deliver an ROE above 20% on the long term. Regarding Net, as you know, Nequi, it's building its loan book with very healthy growth. It is -- they are Nequi targets segment that is not bankerized. We are in the process of learning how that segment behaves. But with that, we are very confident that in the levels that we are, Nequi loan book is profitable we don't expect additional deterioration, you will probably will see some changes. But at those levels, we feel comfortable. We are follow closely following all the vintages in neck and how the loan book is behaving. And we now have enough information to be confident that at those levels, it's profitable, and we can maintain those levels without additional deterioration. So Mauricio, about the NIM and then Laura about the interest rates and inflation.

In fact, as you mentioned, the NIM, the lending NIM is going to have a positive impact because of the repricing of the assets. We're seeing that, and we believe that that's going to continue, as Juan Carlos mentioned because of the REPO rate until at least the first half of next year. So we're going to have a benefit from that in 2026, the whole year -- and we believe in 2027 is going to be even better because at the beginning of the year, the interest rate will be at around 12% to 12.75%. So thinking about derivatives, yes, but not yet. We were doing it. We were implementing some hedge accounting measures when interest rates were coming down. Now that they are going up, we don't see a need to implement derivatives, but that's a tool that we have ready to use once we believe we are reaching the inflection point. And the other thing to take into account in terms of sensitivity is that we were mentioning that for every 100 basis points in interest rates we had a 20 basis points NIM effect. That has moved from 20 to 25, basically because of the divestment of Banistmo because now, Grupo Cibest depends more on Bancolombia's results, which is the entity that is more asset sensitive. With that, I'll give it to Laura.

Thank you. So inflation continues to be one of the main challenges moving forward. And even though yesterday, July print showed a little bit receding headline inflation. We still believe pressures in inflation will come the phenomenon, the El Nino is said to be quite aggressive and could impact prices of food, which was one of the segments that helped the July inflation reading. So in this sense, we believe that the Central Bank still has space to continue a restrictive monetary policy to the 12.5% level. But in case the Board does not manage to find common ground on further hikes especially perhaps giving some leeway to the new government and the fiscal adjustment that is set to be in place. We believe that at the 12% level, 2027 will be a year of higher for longer rates as was mentioned. And in that case, in line with what my colleagues have mentioned, should maintain more duration kind of those high levels in the length of time and not so much reaching that peak of the 12.75%. And inflation is still an ongoing challenge despite yesterday's more receded reading.

Our next question comes from the line of Brian Flores with Citibank.

Good morning. Thank you for the opportunity. Congrats on the results. Two questions here. One, now that we have -- your whole team there. I just wanted to get your views on the incoming administration I know the sector as a whole was very targeted in terms of taxes. And I just wanted to cross check with you what are your impressions, your initial discussions regarding what could happen, not only as they present the reform in some days now. But going forward, right, I think it could be very determinant for the sector? And then a second question on capital allocation. Naturally, with these levels of ROE, maybe you get more optionalities. I just wanted to check with you what your priorities are if it's a bit more dividends, organic growth, buybacks? I just wanted to check with you.

Thank you, Brian. The administration that started a few days ago. creates a positive environment in general. And let me explain why. The Minister of Finance it's given a message that they are going to work on the fiscal deficit as a main priority. And I think that's important because one of the main issues in the Colombian economy is that specifically the fiscal deficit. So the message in which they are going to work not just on taxes, but on the expenses of the government. And particularly, they have talked about be more efficient on tax collection and create a more business-friendly environment, it is -- those are very, very important messages. So it is not an easy task. But I think the new government, particularly the Minister of Finance and the team that he has designated in the to help him in that task are very capable with experience. So that creates a positive view of what is coming. There are challenges around what Laura mentioned inflation, how interest rates are going to behave. But in general, I think it's a positive view that what the measures that they take in order to be more -- that have a more flexible fiscal situation will help. That will take probably a year, but that is also important. And another aspect that is positive is we believe that private investment, local and international investments are going to come to Colombia and that will also create a positive economic activity in the future. So in general, it's positive. But being clear that it's challenging what is coming particularly in the first year of the government. Regarding capital allocation, I'm going to pass that question to Mauricio.

Brian, in terms of capital allocation, we're definitely going to use all the tools we have at pace, they make sense. Let me explain how extraordinary dividends respond to specific moments or specific matters. Last year, it was because of the creation of CVS this year is because the divestment of Banistmo. So every time we have a significant corporate event, we would be able to consider that ordinary dividends, our plan is to grow in real terms. So a couple of points above inflation. That's our plan. Buyback program, it's only going to be executed according to market conditions. So we're not forced to execute the whole amount approved by the shareholders' assembly, but only if it makes sense, corporate development initiatives, very much linked to strategy. So capabilities that would make sense in terms of our strategy is something that we are always going to consider as long as they also make sense in terms of profitability, and we are investing a lot in internal initiatives. So if you look at all the tools we have plus the facts and the instruments, we have executed internally in Grupo Cibest. We have deployed more than $5 trillion Colombia in capital in the past 12 to 15 months.

Just if I may, would it be in your view, fair to say that maybe the, I would say, the risk of higher taxes or specific taxes targeting the financial system. Could we say that now are a bit lower than maybe, I don't know, 3, 6 months ago? Is that fair?

It's difficult to tell, Brian. We think that the general message of this incoming government is not additional taxes. I think yesterday's earthquake creates a situation in which could generate additional taxes to attend the emergency. But in general, and letting aside that situation, I think your comment is fair that is lower. But it's -- in this matter, it's better wait and see.

Our next question comes from the line of Carlos Goldman with HSBC.

We always say congratulations for the results, but this really was quite handed. Again, congratulations on the results. And on the strategy and how you have restructured the group and where a Bancolombias today relative to what it was 12 years ago. So looking forward, first, we have talked about the incoming government. We know that's 1 important issue that happened in the last 4 years, was the change in the usual rate, the interest rate cap. What do you think the chances are that could be reviewed by the new government. We understand that it's early days, but do you have any insight on whether this is something that is at all their horizon or not? And second, regarding the geographical structure of the group, you are down to 3 countries. Colombia is now 80% of the total. Where do you see the group 5 years from now? Do you see it operating in more geographies, perhaps with other countries that could be of interest? Or do you see it operating in the same or perhaps fewer but diversifying into things like things or other products.