Q1 2025 Bancolombia SA Earnings Call
Zeeko: Good morning ladies and gentlemen and welcome to Bancolombia's first quarter 2025 earnings conference call. My name is Rico and I will be your operator for today's call. At this time all participants are listening on emote.
Zeeko: 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 a touchtone phone.
Please note that this conference has been recorded.
Zeeko: 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
Andres Soto,
Zeeko: All forward-looking statements, whether made in this conference called in future filings in press releases or verbally.
Zeeko: address matters that involve risk 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.
Zeeko: Introduction of competing products by the other companies, lack of acceptance of new products or services by a targeted clients, changes in business strategy and various other factors that we describe in our reports filed with the SEC.
Speaker Change: with us today is Mr. one Carlos Mora chief executive officer.
Mauricio Botero-Wolf: Mr. Mauricio Botero Wolf, Chief Strategy and Financial Officer. Mrs. Catalina Tobone, Director General, Investor, Lations and Capital Markers Director and Mrs. Laura Clavijo.
Chief Economist
Speaker Change: I will now turn the call over to Mr. One Carlos Mora, Chief Executive Officer. Mr. One Carlos, you may begin.
Good morning. Welcome to Bancolombia's first quarter results call.
please go to slide 2.
Speaker Change: During the first quarter of the year, the Colombian economy experienced some recovery with an increase in investment and domestic demand despite global trade tensions.
Inflation rates remained stable for most of the core.
Resolving in unchanged intervrates
Speaker Change: Additionally increased public spending paired with decreased tax collection continued to impact on the fiscal situation which will be discussed further.
Speaker Change: I would like to bring attention to some key issues of the quarter.
Speaker Change: The quarterly net income was 1.7 trillion pesos, reflecting a 4.5 growth both on a quarterly and annual basis.
Speaker Change: A robust name of our 6.4% coupled with strong performance in other income and expenses resulted in an ROE of 16.3%.
Speaker Change: The umperfall you decreased slightly this quarter, but grew 7% annually.
Speaker Change: Deposits fell by 1% in the quarter, yet increased almost 13% annually, demonstrating our ability to secure funding and competition without raising costs.
Speaker Change: We have achieved positive results in asset quality across the group.
Speaker Change: Due to our effective models, technical expertise and precise credit policy.
Speaker Change: Due to consistently lower the link between the rates across all banks and positive trends in all segments, the cost of risk for the period was 1.6%.
Speaker Change: Bannismo, so a significant drop in provisional spences due to measures taken to reduce loan deterioration.
Speaker Change: Both, 30-day and 90-day consolidated MPL's ratios reflect improved performance as we will explain further.
Speaker Change: Our capital remains strong with a total solvency ratio of nearly 13% and a core equity tier one ratio of 11%
Following our recent ordinary dividend distribution.
Speaker Change: We are pleased with shareholders approval of our evolution into group site.
Speaker Change: Allowing us to distribute more volume including an extraordinary dividend of 624 pesos per share resulting in a 69 total dividend payout for the year.
Speaker Change: Since approval, we have been completing legal steps to reorganize the entities under the holding structure with closing, expecting on May 16th.
Changes to Colombian operations will appear in May's financial statements.
Speaker Change: On August 6th, we will release Group Seabest 2nd Quarrel, Consolieta Results, including a new accounting structure and performance overview of key subsidiaries.
This is Bancolombia's last earning call.
Future calls will be focused on Groupo SIDES financial performance.
Speaker Change: We are planning a share-by-back program for approval at an upcoming extraordinary shareholders meeting.
Speaker Change: We recently transitioned our banking application to Meebancolombia app and Hasing Customer Experience and Saving AT Cost.
Speaker Change: To date, 8.5 million users have migrated with a 9-3% activity rate over 30 days.
Speaker Change: Thank you, Juan Carlos. If you could please turn to slide three.
Speaker Change: The beginning of 2025 has been characterized by a turbulent international financial conflict nonetheless increasing macro strength for the Colombian economy.
Speaker Change: The environment will grow from certainty, tariff-led pressure on inflation and monetary policy has triggered high volatility in financial markets and a widespread trend of risk aversion.
For Colombia, according to preliminary analysis,
Speaker Change: The ongoing global trade debate would not pose a significant shock to its external position or the economic recovery. In fact, there are potential opportunities to exploit in terms of relative competitive interests in different sectors such as agriculture and manufacturing.
In addition to gains from a weakening exchange rate.
Speaker Change: Thus, we maintain our view that economic growth will continue to gain ground as inflation continues converting towards its target.
Consequently, we maintain our expectation of 2.0.
Speaker Change: 6% GDP close this year and a slight upsurge to 3% in 2026.
Speaker Change: but we will continue to monitor closely the economic consequences of lower than expected growth for key trade partners such as the United States.
Speaker Change: Global risk conversions has impacted investor sentiment towards emerging markets and sets an uncertain financial backdrop which at the outset of Colombian fragile fiscal position has led to local assets being more severely impacted the region peers.
Speaker Change: This has been particularly tangible for the exchange rate which depreciates up to 8% during the second half of March, but is also reflected in higher country risk resulting in a hundred basis point increase in Colombia's CDS spread compared to the end of 2024.
Speaker Change: Consequently, this volatile scenario brings additional pressure to an already challenging fiscal situation and limits the course of action in terms of monetary policy.
Speaker Change: Indeed, the Central Bank kept policy rates on altered during its January and March meetings, despite some apparent rules of continued easing at least from an inflation perspective.
Speaker Change: The disinflationary process continued its course during the first quarter, especially in terms of core inflation, but at a higher than expected minimum wage post-uspressure on regulated goods which supports our revision of end-year forecasts from 4.4% inflation.
Speaker Change: Accordingly, we increased our end-of-year policy rate forecast from 6.5% to 7.5% in the wake of these developments.
Speaker Change: Finally, it is worth mentioning the recent suspension of access to the IMF's flexible credit line. A loan facility that has been available to Colombia since 2009 and is conditional on meeting sound, macro, potential poverty target.
Speaker Change: Even though recent announcements suggest that this does not imply a total cancellation to the fund security.
Speaker Change: It clearly sets additional pressure for the government to develop a credible and adequate fiscal plan to address prevailing risks to Colombia's fiscal sustainability.
Speaker Change: Now, please let me turn the presentation back to Juan Carlos, who will present Bancolombia's quarterly performance.
Thank you Laura.
Speaker Change: please proceed to slide four. After 12 years of promoting financial inclusion in Colombia, Bancolombia La Mano has merged with Necki.
Speaker Change: Bancolombia La Manu provided banking services for adults without access to financial
Speaker Change: While Necki focused on helping young, underbanked individuals manage their money.
Speaker Change: With 94% of Colombia's population now banned, our new goal is to meet the evolving technological and financial needs of our clients.
A challenge, Nekis, well equipped for.
After the merrier, Nike will add around 2.1 million users.
Speaker Change: reaching 23.5 million to whom it will start offering digital and physical debit cards, consumer credit, a broad portfolio of bill payments and top-ups, mobility services among others.
Speaker Change: Additionally, former Alamano customers will now be able to register their keys to move their money instantly and free of charge between participating entities enabled through Gredemann.
Also
Speaker Change: By centralizing operations in one single platform, we will capture operational efficiencies in avoiding duplicated efforts and in turn increase neckys, scalability and revenue generation.
contributing to its profitability potential.
Speaker Change: As a matter of fact, after the merger, Nike will increase its deposits by nearly 700 billion pesos.
Speaker Change: and forecasts an incremental great portfolio of 130 billion pesos by the end of 2025.
Speaker Change: This coupled with an outstanding portfolio that grew over four times in the last year.
Speaker Change: and a low loan to the posits raging will enable NECI to 3-4th is portfolio balance for year-end reaching close to 1.5 trillion pesos by the end of 2025.
Andres Soto
Speaker Change: This move certainly contributes to achieving naked break even in the first quarter of
Speaker Change: Driven by a reduction in the cost of to serve and increase in ARPAG on the back of a broader base of users adopting value-added services under and enhanced financial inclusion proposal.
Now, please proceed to slide five.
Speaker Change: Additionally, I would like to present some market metrics that illustrate the progress of our performance in various business line with the retail segment following the pandemic.
First
Regardej de Posit
Speaker Change: Bancolombia Sparkers share in saving accounts and time deposits has increased by 110 basis points as of February 2025, compared to December 2021.
outperforming the growth of our peers.
Speaker Change: Some of whom have lost market share with the entry of new participants.
Speaker Change: This demonstrates our well-defined strategy on their universal banking model to attract and retain granular deposits which explain our low funding cost and a strong market position.
Speaker Change: Also, I would like to highlight that negative deposits have also experienced significant growth with a 70% year-over-year increase contributing to the overall growth.
Speaker Change: Regarding credit card loans, our market share increased by 20 basis points during a period of high interest rates and competition without compromising portfolio quality.
Speaker Change: with a 16.5% share of outstanding balances we represent nearly 30% of the
Speaker Change: which raises to 37.7% when debit card transactions are included as of February 2025.
Speaker Change: We firmly believe that this well-defined strategy combined with our solid market presence equip us to effectively navigate new comparators and regulatory changes.
Speaker Change: I will now hand over the presentation to Mauricio Votero, who will...
provides further insights into 2025 per square results. Mauricio?
Bye-bye.
You want Carlos?
Please go to slide number six.
Let's start with an overview of our Central American Operations.
Speaker Change: Bancolombia in El Salvador had another strong quarrel with increasing profitability.
Speaker Change: Higher net interest income on the back of a growing lump of folio coupled with lower operating expenses compensated for an increasing provisions driven by long growth in higher risk segments.
Speaker Change: Net income for banismo in Panama increased 11.5% this water highlighting a recovery in asset quality.
Speaker Change: driving its cost of risk 0.2% mainly by an improvement in the performance of its retail portfolio, more effective collection strategies and better risk segmentation.
Taming Quattemana at the Modes Quarly Improvement.
Desperate recording.
A 12% decrease in provision expenses for the period.
Speaker Change: deterioration and consumer loans remains a concern and so the bank is implementing a program focused on improving collections by reinforcing controls in the credit origination process.
Speaker Change: Polino Bancogricula reported an arrow of almost 23% panism of 7% in BAM 4%.
Let's now proceed to slide 7.
Speaker Change: Even a 5% diesel appreciation during the quarter, the long portfolio is slightly decline on nominal terms, while posting a 7% annual expansion.
Speaker Change: Net of ethics, the loan book grew 1.3% in the quarter and 4.1% hourly.
Speaker Change: Brigadier continue with positive momentum, growing at the fastest space both quarterly and annually.
Speaker Change: It's driven mainly by the operation in Colombia where more competitive interest rates have stimulated credit demand and helped increase our market share.
Speaker Change: Mercil loans grew across audiographies at the moderate pace looked
Speaker Change: They, once again, by Colombia, aspirin-affected commercial strategy focused on corporate clients that boosted demand.
Speaker Change: On the other hand, the consumer loan book experienced a contracture during the quarter as the pace of originations was offset with material given its short-term nature.
Please go to slide 8.
Speaker Change: Sisted with the low portfolio performance, the deposits slightly decrease in the quarter.
Speaker Change: Yet year-over-year deposits delivered a 12% growth, but spacing long growth, which reflects our ability to attract and retain funding.
Speaker Change: In breaking down by type of deposit, the aggregate balance of side deposits will place time deposits. Mainly attributed to the performance across our Central American operations.
Speaker Change: Whereas in Colombia, on line-time deposits maintain a solid growth, rapidly overcoming the institutional deposit taking activity, ensuring a more stable and costly efficient source of funding.
Speaker Change: A matter of fact, the cause of the posits held 37 basis points during the quarter are remarkable achievement.
Speaker Change: Even that the record rate remained unchanged during the period, reflecting our effective
even under a more competitive environment.
Speaker Change: Well, you know, saving accounts in time deposits increased the respective share on the funding makes, but at a quarterly in an annual basis.
Speaker Change: at the expense of interbank loans and long-term debt, for their contributing to reducing the overall cost of funding as illustrated in the table.
Please proceed to slide 9.
Speaker Change: This risk income fell by almost 3% in the quarter. It's driven by a combination of lower yielding loans and securities as per the current monetary issue in cycle.
is a nice, smaller investment portfolio.
Speaker Change: However, this was more than offset with a 7.6% drop on interest expense.
Speaker Change: Such that the lending name pounds back to 7% in the quarter, resulting in a 1% net interest income growth.
Wasistently
Speaker Change: The need remained at a solid 6.4% under scoring our ability to manage margin sensitivity effectively throughout interest rate cycles in market competitive dynamics.
Speaker Change: Moreover, we continue to adapt our asset and liabilities strategies to mitigate linked compression on the current easy cycle.
Speaker Change: As shown on the upper right side graph, during the quarter we further decrease the net sensitivity to interest rates.
Speaker Change: Draven by a reduction in non-sensitive interest rate liabilities in other words, current and savings accounts are previously discussed.
Please proceed to slide 10.
Speaker Change: The income fell almost 8% over the quarter, explained by lower credit and debit card fees as per the seasonal effect related to year end. Couple with a slower pace of originations in consumer loans.
that led to a drop in Bancolombia's face.
However, the income increased 9.7% on an annual basis.
Speaker Change: Given the positive aggregate performance of fiend consortes derived from a higher volume of transactions in digital adoptions.
On the other hand...
Speaker Change: The expenses decrease almost 10% on the quarter, also explained by seasonality. Yet increased by 22% year over year due to higher credit and debit card royalties.
There are party collections.
increased banking agent cost.
Therefore,
Speaker Change: The Finkum was almost flat over the year accounting for a Finkum ratio of 17.1% in the quarter.
is go to slide number 11.
Speaker Change: Sling on the positive trend from last year as equality continue to improve in the quarter as evidence by the consistent slower pace of value-long formation and consequently lower expected losses.
Speaker Change: As a matter of fact, the positive performance expected for all segments and the incorporation of improved macroeconomic data into our risk models led to a net provision charge of 1.1 trillion pesos.
Speaker Change: This figure represents a 16% year-over-year drop in an analyzed cost of risk 1.6%.
Speaker Change: Moreover, the Linquancy Raches registered declines over the quarter and over the year.
Speaker Change: Both on a 30 in a 90 day basis. Reflecting the better performance of vintage
in an overall head tier loan portfolio.
Coverage for 30 day positive loans.
is stayed almost flat at 111%.
whereas the covers for 90-day positive loans increased to 162%.
Speaker Change: Breakdown by your stages confirms the better outlook as you can see a stage 1 loans now representing 88.1%
Speaker Change: Also the covers ratio for stage 2 and stage 3 loans maintained at 41% ensuring adequate loan loss reserves.
Speaker Change: Our improved results on asset quality reflect our efforts on developing robust
Speaker Change: and predictive capabilities, levers on analytics to support decision-making while the credit cycle.
is going to slide 12.
Braiding expenses decrease 7.7% compared to the previous quarter.
Speaker Change: Mainly attributable to a seasonal effect as expense related to business transformation and to gradually increase towards year-end.
Speaker Change: Personal expenses on the other hand increased due to the annual waste adjustment in Colombia and inflation index items, whereas variable bonuses decline.
Speaker Change: Gene from Manual Perspective Operating Expenses grew 9.8 percent, Gershli explained by IT-related costs.
Speaker Change: Animal weight increase in a basic effect on bonus plant provisions given the low provision of crude one year ago.
Speaker Change: We measured in terms of costly income, the efficiency ratio fell to 49.6%.
Please proceed to slide 13.
Speaker Change: We know that income reached 1.7 trillion pesos in the period, marking a quarterly and annually increase of 4.5%.
Speaker Change: This represents a return on equity for the quarter of 16.3% and a return on tangible equity of 20.4%. Demonstrating the robust operational and financial performance in the beginning of the year.
Now please proceed to his life for teen.
Shareholders equity fell 6.7% quarter over quarter.
Speaker Change: Provided the 3.8 trillion pesos dividend payout that was approved at our annual shareholder's meeting.
Year over year it grew 11.4%
Speaker Change: Consistently the core equity tier 1 ratio ended at 11.2%. A 73 basis point decrease over the quarter given the dividend payout.
Speaker Change: yet increased 71 basis point during the year on the back of organic capital generation.
On the other hand...
Speaker Change: Total solvency is 2 at 12.9%, both ratios well above base of three total requirements.
Speaker Change: This I will now hand the presentation back to Juan Carlos for the final remarks.
Thank you Mauricio.
Please proceed to slide 15.
Speaker Change: We originated over 13 trillion Colombian pesos under our business with purpose strategy this quarter.
Speaker Change: reaching a total of 210 trillion pesos towards our 2030 goal.
Speaker Change: We financed more than 5 trillion pesos to support the transition to a low carbon economy through renewable energy and sustainable transport.
Speaker Change: We were recognized by Merco as Colombia's top ESG company for the sixth consecutive year. We are affirming our leadership in sustainability and corporate governments.
[inaudible]
Please refer to slide 16.
Andres Soto
Speaker Change: Finally, I would like to present our revised guidance for 2025.
Speaker Change: Following our latest macroeconomic update for year end, which reflects an increased inflation forecast of 4.4% and central bank interest rates of 7.5%.
We anticipate a long growth of approximately 5%.
We expect the net interest margin to be around 6.2%
Speaker Change: With the cost of risk decreasing to a range of 1.8% to 2% attribute it to strong long performance in Colombia.
Speaker Change: Furthermore, we project the efficiency ratio to be approximately 51% and the return on equity to be between 14.5% and 15%.
Andres Soto,
This concludes our presentation of the first-core results.
Speaker Change: We are now ready to address any questions you may have.
Speaker Change: Thank you. We will now begin the question and answer session. If you have a question please press star then one on a touchstone phone.
Speaker Change: If you wish to be removed from the cue, please press the pound sign or the hash key.
Speaker Change: If you are using a speakerphone, you may need to pick up the handset first before pressing the numbers.
Speaker Change: Once again, if you have a question, please press star then one on a touchstone phone.
Our first question comes from Yuri Fernandes from JP Morgan.
Please go ahead.
Speaker Change: Thank you and congrats on the quarter everyone. I have a question regarding your bonus line your cost line when we go to personal expenses.
It is tracking above inflation, well above inflation.
Speaker Change: But I know bonus can be volatile right during the year so just checking what you expect in that line was the first quarter you know higher because of some reason so you can explain that line.
Speaker Change: That will be interesting. And then I have a check on the question regarding margins.
Speaker Change: I think you have been doing a good job on this funding cost.
Speaker Change: But I believe there is a limit, right? How much optimization you can have? We see a...
of some of the compactive environment for funding in Bancolombia.
Speaker Change: So just trying to understand if your guidance for an in this 20d decrease that you are forecasting for the year versus the first few. If this implies that you are calling for fund optimization to be less pronounced.
going forward. Thank you.
[inaudible]
Speaker Change: Thank you, Yuri. I am going to address your second question and I am going to ask Maurizio to address your first one regarding the cost line.
Speaker Change: as you said we have been working very hard on the cost and the the results are are there I mean the
The coastal spawns.
Speaker Change: It's limited due to what we can do because of the level of interest rates. On the income side...
Speaker Change: Our expectations were that the central bank was going to lower the interest rates.
Rates faster.
Speaker Change: They are addressing or applying the monetary policy is less than we were expecting. In the last meeting, the central bank lowered the ripple rate 25 basis points.
Speaker Change: and our expectations today are that the reference rate will end the year around 7.5 but there we think there is.
Speaker Change: a risk that is not 7.5 but could be more 8% even though even the central bank is talking about that right now if that is the case it means that we could defend the income, the interest income.
Speaker Change: Due to what is going to be the interest rate in the economy so...
Speaker Change: We are confident that the guidance that we are giving around need.
Speaker Change: around 6.2% is achievable due to what are we seeing is the behavioral of the interest rates in the economy and what we are doing in the in the cost [inaudible]
Maulis about the coastline.
Speaker Change: Hi Judy. As you mentioned, we have a significant increase in operating expenses regarding labor expenses and that's due mainly to bonuses.
And that's because of the first quarter of...
2024.
Our expectations for met income for the year.
Speaker Change: We're lower so so the provisions for bonuses were lower and if you remember we have we had a pick up a net income in the fourth quarter of the year so provisions for bonuses in the fourth quarter of the year were higher.
Speaker Change: So this year we're expecting better net income for the year.
Speaker Change: Provisions for bonuses started significantly higher from the beginning of the year. So that's a comparison we're going to have throughout the year, and it's only going to match in the fourth quarter.
Mauricio Botero-Wolf: No, super clear. Melissa, if I made just a follow up to Juan Carlos on the on the on the [inaudible]
Speaker Change: Juan Carlos, can you remind us the sensitivity for rates? I remember it was something closer to 20 beats, but you have been changing, you know, your liability listed on the funding, Nike Health, so what is the current sensitivity for 100 beats change on rates?
Speaker Change: Julie, our sensitivity is still the same. Between 2022 basis points for every 100 basis points in the central bank rate, but taking into account that that's the average rep rate.
No, perfect. Thank you very much guys and congrats again.
Thank you Julie.
Speaker Change: Thank you. We have Ernesto Gavilondo with Bank of America on the line for a question.
Thank you. Hi. Good morning on Carlos Mauricio and Catalina.
Thank you for your opportunity to ask questions.
Speaker Change: I have a flu for my side. The first one will be on the political and economic outlook.
Speaker Change: We have seen recent polls such as in Bamer, Guaromo and Echo Analytica showing that Gustavo Bolivar is leading the polls.
Speaker Change: On the other hand, the recent suspension of the IMF agreement indicates that there are some fiscal challenges for the country. So I would appreciate your thoughts on both topics.
Speaker Change: And if you think the fiscal situation of the country would be the key challenge to be addressed by the new government next year.
Speaker Change: I'm going to have a second question related to the subsidy areas. We continue to see the Salvador.
with very strong ROE levels.
Speaker Change: But on the other hand, Panama, I believe it posted something around 7% and Guatemala around a 4% ROE. So I would like to hear what could be your potential ROE targets among your sub-city areas.
And my last question will be.
Speaker Change: on your net income per quarter or what you have said about your guidance.
So this quarry came at 1.7 trillion Colombian pesos.
As you mentioned, an ROE of 16.5%
Speaker Change: and you have guided an ROE of around 14.5, 15% for the year.
Speaker Change: So when making the numbers, would it be reasonable to expect a net income per quarter below the 1.7 trillion Colombian pesos in the next quarter or what should we think about it? Thank you.
Thank you Ernesto A.E.
We got in the
Speaker Change: to have a clear view of what is going to be the situation next year.
Speaker Change: Remember that in Colombia we will have elections, Congress election in March and the first round of presidential elections in May.
Speaker Change: I think that we will start seeing a clear picture by the end of this year, who will definitely at least go to Ron, at this moment there are too many.
Speaker Change: Candidates of people with intentions to run, but those are just intentions.
Speaker Change: By the end of the year, I think October , November , we will have a clear picture as I mentioned who is going to run for which party, who is going to go as an independent candidate and I have a clear picture.
Speaker Change: a round of presidential elections with opportunities to move to the to the runoff. So it's where it's my conclusion.
Speaker Change: In terms of your second question about the fiscal situation in Colombia, definitely the fiscal situation is the biggest challenge that the Colombian economy has right now.
Speaker Change: The fiscal deficit that the government presented for last year was
Speaker Change: was too high, so it's something that definitely the government needs to work in.
Speaker Change: And then we pass Laura Clavijo to give you a additional call regarding the FMA line of credit.
Laura Clavijo: Yes, thank you. Well indeed, the fiscal situation is the main weakness.
Laura Clavijo: In terms of our macro outlook, we revised to 5.9% of GDP expected fiscal deficit friend of this year. And let me say that this is a base case scenario given also recent international turmoil that has of course impacted to some extent the effects rate has expanded kind of the spread on risk premium and given kind of the levels of oil prices will may impact.
Laura Clavijo: In fact, further some of the fiscal expectations that this government presented back in February .
Speaker Change: Grounded a scenario of how the government expects to address these main talent.
Laura Clavijo: Thank you Laura.
Laura Clavijo: Regarding your second question about the subsidy or you say our O E. As you mention that the performance is.
Laura Clavijo: It is not the same.
Laura Clavijo: All countries are Banco Agricola, and it's about what it's doing very very well yeah. I mean this year, what we see is that for four months, we'll continue.
Laura Clavijo: Or are you seeing in the end.
Laura Clavijo: <unk> will be above 20, 20%.
Laura Clavijo: In the case of balanced with Panama.
Laura Clavijo: It's north of all the the recovery of the <unk> remember that we are coming from in a row poor year in 2024, 3% now in this first quarter was 7% and we think that the this recovery.
Laura Clavijo: It will continue and we are targeting.
Laura Clavijo: Are we are well above 10% for branding smoke and in the case of bomb, it's low for the quarter.
Laura Clavijo: And also we are expecting that the bomb to.
Laura Clavijo: They have a better a better performance it's seen in the in the middle of recovery on the full potential although he's not going to be de lever. This year. We are targeting more 2025, and we are expecting bomb to deliver on our OE.
Laura Clavijo: Close to $14, 15%, so yeah. The outlook I think is positive.
Laura Clavijo: In terms of what the bank quite equalized is delivering on that trend.
Laura Clavijo: The other two operations in Central America.
Laura Clavijo: Regarding net income.
Laura Clavijo: One seven trillion for the quarter is the highest.
Laura Clavijo: The figure.
Laura Clavijo: Thank your for the last two years. So do you ever actually is more close to one five trillion.
Laura Clavijo: It.
Laura Clavijo: It seems there are some still some uncertainty and uncertainties regarding the macro.
Laura Clavijo: The four months of the different countries and what is happening in the global economy. So we prefer to be cautious and that's why we are talking about not only between 14, 5% to 15%, even though the auto for the quarter.
Laura Clavijo: For the first quarter was 16% as you mentioned is there an upside potential I think so but all depends on on on external factors I think the performance of the economies in which we are and how the global pension said, the geopolitics and the global economy.
Laura Clavijo: To me it is going to behave so are we.
Laura Clavijo: We want to remain cautious in terms of our guidance for the full year.
Laura Clavijo: No Super careful thank you very much Juan Carlos Mora.
Laura Clavijo: Thank you Amit.
Speaker Change: Thank you.
Speaker Change: We have Andres Soto with Santander on the line with a question.
Andres Soto: Good morning to all and congratulations on another strong set of results. My question is probably more related to macro <unk> first quarter 2025 was a good quarter for Colombia, but conditions materially did you already in the second quarter or do you have been you know with old prices 60 62. This is.
Spent $10 lower than what the government expected for the full year. So I would like to understand how these are lower oil prices, our trickled down into Europe GDP forecast on fiscal forecast.
Andres Soto: And if you expect to make any revisions to any update to your provisioning model considering this new environment.
Andres Soto: Yeah understood.
Lora: Let me pass the question to Lora.
Lora: Once she elaborates on the onset of I will I wouldn't take the part of the of the Kobe.
Lora: Yeah. So so indeed, we maintained during during our first quarter, our two 6% expectation of GDP growth for this year.
Lora: This was prior to kind of the whole Trump trade.
Lora: Trade volatility as well as our more recent events on the on the fiscal on the fiscal side. We will have a revision again mid June where we expect to incorporate whatever that government brings to the table under on them and then the fiscal outlook as.
Lora: As well as kind of the settling of some of these international variables, especially considering oil prices as you mentioned it will impact revenues expected I believe the the fiscal plan I ask the date.
Lora: Looked at a prices more in the 65 and $70 per barrel range, whereas we are now closer to 60, so definitely something to look at from that perspective, so the fiscal outlook could impact, especially gotta make expenditure there had been one of the leading sectors in the economy and the.
Lora: Flip side and the reason, perhaps why are we feel kind of comfortable to this extent on the two 6% GDP growth and up here, which is also what the central Bank published yesterday, emphasizing that same estimated growth.
Lora: Is the fact that we are seeing a far more resilient on internal demand consumer households are exhibiting a quite a resilient coming from Remington says other types of spend.
Lora: Spending we are seeing an upswing also in cutting consumption of more durable goods and leading sectors, such as entertainment and agriculture are fairing relatively well in.
Lora: In addition to kind of these new sectors also bringing some dynamics to the table. So to two kind of calendar effects that lead us to some extent you feel comfortable around is two 6%. Nonetheless, a revision will come maybe yes.
Lora: And regarding the effect of these macroeconomic outlook yeah.
Lora: Our numbers on the particularly the cost of risk boundaries and that's why we are cautious about the the guidance of the coastal piece, even though we and we have had two very strong quarters in terms of cost of risk.
Lora: We remain cautious and that's why our guidance of the cost of risk is between 1.8 untrue.
Lora: Even though the cost of risk for the first quarter. This year was $1 six <unk> on the on the quarter on the cost of risk for the last quarter over.
C or even what was better. So that's why we are we remain cautious because there are some some risk associated to the macro.
Lora: The environment that we are considering in our in our guidance.
Lora: I think here with somebody as Juan Carlos a lot.
Speaker Change: And if I might follow up on Lora sensors are what will be the solution for the government picks you know at least temporarily the big budget challenges, but they have for this year do you do you see a possibility for some of the measures, but that has been proposed such as bringing forward tax payments or comes.
Speaker Change: It's a two to be the solution on the what are the solutions come they kind of go over them and implement tool to the hole that is being created and he's growing.
Speaker Change: Everybody they passes.
Speaker Change: Well, our base case scenario of five 9% of GDP fiscal deficit.
Speaker Change: <unk> suggests a breaking the fiscal rule again this year. So it's already a stress scenario, which kind of incorporate some some space to endure a expenditure cuts but of course, we know there is a lack of flexibility and maybe also lack of willingness.
Speaker Change: In a pre electoral yes, so I think it would have to be a combination of many things that you mentioned are kind of delaying some budget execution.
In fact cutting expenditure to some extent and kind of all these different initiatives that are ongoing but it is a scenario that in any case. Our base case scenario is a not compliance at the fiscal rule and especially given kind of those very high expenditure.
Speaker Change: Okay.
Laura Clavijo: Thank you Laura.
Speaker Change: Right.
Speaker Change: Thank you.
Speaker Change: Our next question comes from Brian Flores with Citi. Please go ahead.
Speaker Change: Okay.
Brian Flores: Hi, Tim Congratulations on the results. Thanks for the opportunity two questions here on my side. The first one is wanted to understand.
Brian Flores: How should we think of provisions right then the relationship with girls.
Brian Flores: You reduced your guidance in terms of both items slightly quarter over quarter. So just wanted to confirm.
Brian Flores: You're expecting lower group, particularly in consumer.
Brian Flores: And also if you could expand your guidance by by segment I think that would be really helpful.
Speaker Change: Then my second question is you made very interesting comments on Nikki on colonial among just wanted to confirm.
Brian Flores: You've you said.
Brian Flores: Two things one you're reaching breakeven in the first quarter of 2000, 2026, and you will reach $1 five trillion in loans also by the end of this year I just wanted to confirm that those data points and then maybe a derivative question right you were seeing more transactions increasing the L. D R.
Speaker Change: Can you say or quantify but everybody is having an impact or should have an impact on fees and this is already incorporated into your guidance. Thank you very much.
Brian Flores: Thank you Brian for your question.
Speaker Change: Let me.
Speaker Change: Chris Your second question.
Speaker Change: Regarding regarding Nikki and.
Speaker Change: As you mentioned we are.
Speaker Change: Decided at the beginning of this year to merch Bancolombia, a la Mano Nikki and that's undergoing on by the end of May we would we were expecting to finish it.
Speaker Change: The debt.
Speaker Change: Lines of Bancolombia, a la Mano moving it yeah.
Speaker Change: E S.
Speaker Change: Hey.
Speaker Change: Doug will.
Speaker Change: Gave a nicky a considerable size, saying, we expect a naked wind may look with around 24 to 28.
Speaker Change: $24 5 million clients.
Speaker Change: Clients.
Speaker Change: I would like to highlight that does the level of activity is very high I mean, 78% of the of the clients with Nicki out of active at least once a month moving moving one that's very very very high.
Speaker Change: Is it that means that Nike is useful or not on a break.
Speaker Change: Or are very frequently by by Nicky Nicky users and.
Speaker Change: As you mentioned, we are very happy with the with the development of the loan portfolio.
Speaker Change: Hum.
Speaker Change: You said that we were expecting to have one five trillion.
Speaker Change: So it was in loans by the end of the year the figure.
Speaker Change: At the end of April is.
Speaker Change: The 1512 trillion. So we are in line.
Speaker Change: Our expectation is that we are going to.
Speaker Change: I have a better performance in terms of loans.
Speaker Change: For those.
Speaker Change: Those are loans or other.
Speaker Change: Yeah.
Speaker Change: $500. So it's small small amount.
Speaker Change: Great.
Speaker Change: Uh Huh underperformance I tell you as I said is very good and yeah.
Speaker Change: Yeah.
Speaker Change: This is to ratify that we are expecting Nicky.
Speaker Change: So to reach the breakeven point by the beginning of my view on that.
Speaker Change: Next year.
Speaker Change: And that's a very very important milestone for Nike, we are very very happy with the pro.
Speaker Change: We're four months the development how the the loan portfolio is behaving now just in terms of volume, but in terms of quality. It's a it's a N.
Speaker Change: It's very much in line with our expectations, even better than our expectations. So we are very positive or yeah, I'm very optimistic about the performance of all our Nicki.
Speaker Change: And let me pass you. Your first question to Tom already sort of in the one group was named provision.
Tom: Thanks, Brian.
Speaker Change: Regarding provisions.
Speaker Change: As we mentioned before.
Speaker Change: It was.
Speaker Change: A very positive quarter in terms of cost of risk one six but the good thing and I would like to highlight is is how we got there and it's basically the deterioration.
Speaker Change: The difference.
Speaker Change: Segment was better than expected. So if you take a look at the different metrics regarding.
Speaker Change: Asset quality. They are they are looking good we don't have any one offs in the quarter.
Speaker Change: Would explain the one six so provisions looking good in the quarter looking good for the year, but we still need to be prudent because of the macro scenario that we have mentioned before now in terms of guidance.
Speaker Change: The breakdown of the guidance is commercial loans growing at 4%.
Speaker Change: Mortgage loans growing at four 5% and consumer loans growing at 8%.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: No that is very helpful. And then just a quick follow up on the first answer and I think we didn't we did not disclose the impactful, but anyway you can break.
Speaker Change: Present any downside risk.
Speaker Change: Sure.
Speaker Change: We do face in the coming quarters. Thank you.
Speaker Change: Thank you. Thank you, Brian I'm, sorry, I didn't I didn't.
Speaker Change: But it yeah.
Speaker Change: I mean, Brett Brett it is going to have an impact in terms of how people are moving money, but let me say that we.
Speaker Change: I was expecting that that impact is going to be mild.
Speaker Change: Yeah.
Speaker Change: We are in January.
Speaker Change: Ben.
Speaker Change: The deal with Bancolombia, a naked platforms.
Speaker Change: Ooh hub are free.
Speaker Change: In media transactions among several buying solid today today. It is possible to move money among several I mean more than 10, roughly 15 banks in Colombia.
Speaker Change: Yeah without fees on a cost.
Speaker Change: Sorry, so there will be some effect definitely but we are very well prepared to manage that effect on unless I mention.
Speaker Change: If we move forward and we didn't wait for <unk> to be ready and we make available for our customers the possibility to move money freely.
Speaker Change: Yeah.
Speaker Change: Among them are bunk so yeah.
Speaker Change: I think at the M D. The effect will be positive in terms of how long, it's going to move in Colombia.
Speaker Change: We think we are very well positioned to take advantage of that possibility right.
Speaker Change: Yeah.
Speaker Change: No Super clear Thank you team.
Speaker Change: Thank you.
Speaker Change: Thank you.
Speaker Change: Our next question comes from Tito <unk> with Goldman Sachs. Please go ahead.
Tito: Hi, good morning, Thanks for the call and taking my question a couple of follow ups, if I may firstly, what kind of.
Speaker Change: On the margin.
Speaker Change: Cause you kept the margin guidance.
Speaker Change: Are the same and but you also mentioned that you expect the policy rate to be higher than what you were initially expecting a seven and a half I think you had mentioned initially six and a half with the risk that it can be even eight.
Speaker Change: And you said the sensitivity.
Speaker Change: To rates Didnt really changed so just to understand why you kept the NIM guidance the same even though it looks like rates could be higher than initially expected or is there just some conservatism there some potential upside there and then my second question following up on the loan growth a little bit because you did lower the guidance even.
Speaker Change: And though asset quality is doing while they're there.
Speaker Change: A little bit of uncertainty on the economy suggest to think like it.
Speaker Change: Is there some more downside risk to the loan growth when can that inflect and maybe see some upside just to get a sense because you got some good asset quality trends, but some uncertainty on the economy just to think about that but maybe longer term outlook for loan growth. Thank you.
Speaker Change: Hey, Thank you Tito plan, let me give you some color on the two on your two questions and I will pass it to Mauricio to.
Speaker Change: He wants to add something margin yeah.
Speaker Change: We were more.
Speaker Change: Yeah, what what we saw at the end of last year and broadly before is that this year 2025.
Speaker Change: The interest rates will go down faster than our expectations, a dull moment and what they the even the the NIM was going to be close to six or even below below 6%.
Speaker Change: Yes.
Speaker Change: We the behavior of the inflation on what the Central Bank the bank, where a lot of public is doing regarding that.
Speaker Change: Place shown on the speed on which they are planning to monetize Paul you see that's why we are talking about six 2% of NIM for the full year.
Speaker Change: We ended this quarter with six three so what we've seen is a.
Speaker Change: Hundreds of basis points reduction on the Dayton freight it's the reference for the interest rate cut. This morning, it's a nine month 900 quota.
Speaker Change: We mentioned that could be seven five but we've made great that it could be eight so that's on the 25 basis points 400.
Speaker Change: 75 basis points reduction so that's why in that sensitivity, it's where we are moving and regarding the margin, but definitely what we see is that the.
Speaker Change: If there is a risk now it's a positive risk that we can defend the margin.
Speaker Change: Yeah, Yeah in terms of.
Speaker Change: What is the speed of that.
Speaker Change: Oh for which the interest rate is going down in Colombia. So we are on the conservative side.
Speaker Change: It is possible depends on how the interest rate smoking the economy, but definitely it could be a positive.
Speaker Change: A positive risk in terms of the interest rates remained higher for longer and that will allow us to maintain the NIM for a longer also increasing D D.
Speaker Change: The interest income.
Speaker Change: The loan growth.
Speaker Change: Loan growth definitely is a challenge let me let me put it this way the economy.
Speaker Change: What we have seen in the economies that Columbia is performing very well I mean, they've got the quality is good.
Speaker Change: The demand it's affected for the insurance of the political uncertainty on on what we see in terms of what is going what is happening globally. So there are some uncertainties, but in terms of.
Speaker Change: Consumption is it's some so what we are seeing is and what we mentioned on the term salt of loan growth and debated in the difference.
Speaker Change: In there you put in a segment is that consumption or consumer loans could grow a little bit faster. What we are seeing is that that demand and I mentioned, Nike, which is which is now.
Speaker Change: Very very well, even better than we were expecting and also disbursements in terms of consumption or consumer loans.
Speaker Change: Our are improving and commercial loans I think will depend on it.
Speaker Change: The projects that are due to the expectations of the new government will start demanding some some credits and the performance on mortgages.
Speaker Change: It is very good it's really really good so yeah. It will depend at the end on macro on them expectations regarding the political environment, but he said I don't know if you want okay.
Speaker Change: That's that's a hell of a hour.
Speaker Change: Our third.
Speaker Change: But it'll be one regarding your question Steven.
Speaker Change: Okay, No that's very clear thanks, Juan Carlos just to be clear and I know the guy on the NIM guidance. It sounds like there could be maybe some some upside risk there, but the trend is still should be coming down as rates come down, but with the potential upside given the <unk>.
Speaker Change: Maybe coming down slower than expected.
Speaker Change: Correct.
Speaker Change: Okay perfect. Thank you Juan Carlos.
Speaker Change: Thank you.
Speaker Change: Our next question comes from Carlos Gomez with HSBC. Please go ahead.
Carlos Gomez: Hello, Thank you for taking my questions.
Speaker Change: Two brief ones one.
Speaker Change: Multifamily slightly.
Speaker Change: We have countries different elements, but I see that the S. E. T. One that you have between 11 to 11.5 is no longer part of the guidance and I was wondering if you want to have more flexibility as to how much capital do you want to call.
Speaker Change: Second question is once you have a group of <unk>.
Speaker Change: That is your priority still to do the buyback $4 million or what else do you think you can do immediately and adequate into bancolombia. Thank you.
Speaker Change: Thank you Carlos let me address your second question and I will pass your first wanted to Mauricio.
Speaker Change: He definitely we are.
Speaker Change: In the way of setting up a good boy, who see with Cypress.
Speaker Change: Well our expectation cease by the end of May we will have everything in place.
Speaker Change: And we will.
Speaker Change: We will have.
Speaker Change: Shell a cypress shareholders meeting in June.
Speaker Change: And our idea is to present to that shareholder meeting the buyback program.
Speaker Change: And as you mentioned, we are planning to present, another $300 million equivalent the patients of course.
Speaker Change: The $1 billion program of buybacks adopt them.
Speaker Change: First ciba's shareholder meetings that as I mentioned, we are expecting that to take place in in June.
Speaker Change: And hi, Carlos.
Carlos Gomez: Yeah, complementing that and beautiful series S. We mentioned gave US a lot of options and that Optionality is you're gonna be targeted in our unearned way E. In the different options as we say <unk> kept on it.
Speaker Change: Patients in corporate development or flexibility in any.
Speaker Change: And I guess, the simplicity to to understand it.
Speaker Change: The operations. So one of them is kept in the structure and we already had a distribution of an.
Speaker Change: They certainly are already D V N, which is the result of that optimization of the capital structure. So they buy back east is another thing and and things will keep going on and then regarding the guidance for core equity tier one the reason why we didn't include it is because.
Speaker Change: The guidance is you're gonna be basically.
Speaker Change: She was guidance at the end of the year, we're gonna be presenting see this result, and foresee this G E. One.
Speaker Change: We would not be a mystery to take into account that would be a metric to take into account in their operational.
Speaker Change: Companies so.
Speaker Change: The Bancolombia S E T one we'd still be.
Speaker Change: You'll have a target between 11 and 11, five but Sirius will not end.
Speaker Change: So I guess, the the metrics that we will be including we would be double leverage.
Speaker Change: Starting from second quarter.
Speaker Change: That's very clear thank you.
Speaker Change: Thank you Carlos.
Speaker Change: Thank you.
Speaker Change: Our next question comes from Oliver <unk> with UBS. Please go ahead.
Hi, Good morning, everybody. Thank you for taking my question actually I have just one it's related to the profitability of the bank.
Speaker Change: Because I just wanted to understand what.
Speaker Change: What would be a deleverage for bureau.
Speaker Change: To increase again, a return to that high teens figures that we used to see the first.
Speaker Change: Cause I totally understand the topped out elements, which is they are key in this process, but what could you share with us there.
Speaker Change: <unk> of Baltimore.
Speaker Change: So I just wanted to understand the focus of the bank all dania How's that efforts and try to do some analysis here.
Speaker Change: And also in this context.
Speaker Change: Possible of course could you remind us or if the date.
Speaker Change: About the long term Roe of the bank.
Speaker Change: Which the bank starting off for the long term.
Speaker Change: Thank you very much guys.
Speaker Change: I love it.
Speaker Change: Thanks for the question and I'm going to start from from B in the our long term.
Speaker Change: Roy and goal is to reach 16%.
Speaker Change: Maybe you have our <unk> figures from a couple of years ago when margins were.
Speaker Change: Significant significantly higher and we reached roe's of even higher than 20% those are not sustainable, but we do believe we can reach 16% Roe.
Speaker Change: Going forward and the way to think about that.
Speaker Change: In terms of upside.
Speaker Change: Could be.
Speaker Change: With the initiation of service.
Speaker Change: In managing the capital structure, taking advantage over the possibilities she was gave us.
Speaker Change: Along with a transition in terms of macro and economic that allow us to grow the loan book faster than it is growing now.
Speaker Change: I would.
Speaker Change: That would push fees.
Speaker Change: <unk> also and give us or it take us to a more sustainable cost of risk.
Speaker Change: Our long term cost of risk of around 1.8, if we reached that in the long term I really could be higher than 16, maybe reaching 17% or so but long term you should think about <unk> 16 per se in a sustainable way.
Speaker Change: Okay. That's great. Thank you very much guys.
Laura Clavijo: Thank you Laura.
Speaker Change: Thank you.
Speaker Change: Our next question comes from Nicolas Riva with Bank of America. Please go ahead.
Nicolas Riva: Thanks, very much Juan Carlos and team for the chance to ask questions I have two questions one.
Speaker Change: Hello up from the question that I think Carlos Gomez Lopez had asked on capital, but if you can.
Nicolas Riva: Give us your thoughts regarding plans to raise additional capital basically because I look at the buffer over the minimum requirement for total capital as it looks.
Nicolas Riva: On the Athene side for a bank of your size. So I think our total capital was 12, 9% at the end of March.
Nicolas Riva: Would you say about 140 basis points above the minimum so if you can give us some thoughts regarding your plans if any to raise additional capital.
Nicolas Riva: And then the second question I'm also a follow up regarding the creation of the new holding company say best if you are thinking of using that new vehicle to raise funding senior data, but also to raise capital in the sense that you could raise thinking are there out of <unk>, a new holding company and then downstream made a scalpel.
Nicolas Riva: Turning to the banks to the Colombian bank.
Nicolas Riva: Yes.
Nicolas Riva: Yeah.
Nicolas Riva: Hi, Nicholas and thank you for the questions.
Nicolas Riva: First regarding the capital position.
Nicolas Riva: We have used in order to distribute dividends, we have used a year end target of 11% and last year. For example, when we do see reiterate our dividend it dropped to 10, 5% as expected and came up.
Nicolas Riva: Above 11% at year end this year after distributing dividends a eat only went down to 11, 2%.
Nicolas Riva: Got the basic capital.
Nicolas Riva: So the figures that you mentioned.
Nicolas Riva: Give us a cohort we have run all the stress test we have run all the scenarios, we're very conservative and we keeping those we'd risk rating agencies and we feel comfortable with the capital levels. We have at this time.
Mauricio Botero-Wolf: And regarding Maurice.
Speaker Change: Mauricio if I can do a follow up there because I see.
Speaker Change: You said the CET one level you have quite some buffer I think over 400 basis points, but if I look at total capital given that the 20 sevens well, so you're right about two years away from maturity and Theyre, losing capital treatment.
Speaker Change: So that's why I'm thinking more.
Speaker Change: We gotta be in tier two capital you start any plans to replace the capital you're ever going to be losing with a 27% and again given that the buffer on total capital looks a bit senior huh.
Speaker Change: Right right. Yeah that was your second question and then I was going to address and the answer is no.
Speaker Change: Good luck in the short term doesn't mean 2025, we're not planning any <unk> or any <unk>.
Speaker Change: [noise] issuances of.
Speaker Change: Oh different instrument, but of course, and that's going to be an optionality that we see this will bring us both at the holding company and operating company level. So we might be a drop in the market for tier two.
Speaker Change: Instruments in 2026, but we can also.
Speaker Change: They do 80 ones at the holding company, we don't know its not a short term need.
Speaker Change: But we do know the options are there and the market and is asking about that Nikolaj, let me.
Speaker Change: Okay. Go ahead. Please go ahead no I was going to say one last follow up yes, sorry to interrupt Hong Carlos one last follow up question from Audi shunned that I would've imagined that as you said the holding company doesn't have capital requirements are about and perhaps like double leverage. So I would assume that you would either issue senior debt at the holding company level, a tightest and announced.
Speaker Change: Dream data.
Speaker Change: Injection to the bank or you could raise a tier one or tier two capital at the Colombian bank level, because that's the entity that has the capital requirements.
Speaker Change: Fair.
Speaker Change: It is it has fallen off and Nicola.
Speaker Change: And I just wanted to highlight what you just mentioned they they they the evolution of our corporate structure will give us flexibility and as Joe described we can we can.
Speaker Change: Look for additional resources.
Speaker Change: At the holding level of this cypress level are they.
Speaker Change: The level of of a double leverage that we have a cyber sees very comfortable so we have a space there, but EBIT, but also a weekend.
Mauricio Botero-Wolf: Look for additional instruments at the other subsidiaries level. So we have the flexibility to eh to tap the market depending on what are our all our requirements. The interest. So we have that flexibility, but I want to emphasize what Mauricio said lease.
Mauricio Botero-Wolf: This year, we feel comfortable with the level of capital that we have on both levels at the holding company side, there's all of the operational and the bonds in the different geographies, but but now we have the flexibility.
Mauricio Botero-Wolf: Again to go to the market.
Mauricio Botero-Wolf: Yeah.
Mauricio Botero-Wolf: The operations to Eh.
Mauricio Botero-Wolf: Ooh Ooh Gulfport resources, if we need it.
Mauricio Botero-Wolf: Additional additional.
Mauricio Botero-Wolf: Capital in any in any of the operations Nicolas.
Juan Carlos: Thanks, very much Juan Carlos Homeownership.
Mauricio Botero-Wolf: Thank you.
Mauricio Botero-Wolf: Thank you.
Mauricio Botero-Wolf: We have no further questions at this time I would like to hand, the conference over to Mr. Juan Carlos for closing remarks.
Mauricio Botero-Wolf: Thank you everybody for attending this conference.
Speaker Change: Conference call at our next.
Mauricio Botero-Wolf: Conference call.
Mauricio Botero-Wolf: We will present the results of Cyprus saw their results for the second quarter will be a site that are results due to our corporate evolution.
Mauricio Botero-Wolf: I've mentioned so again, thank you very much on helps you to see you in our mix a conference call. Thank you very much everybody and not have a good day.
Mauricio Botero-Wolf: Thank you. This concludes today's conference. Thank you for participating you may now disconnect.
Mauricio Botero-Wolf: Hum.
Mauricio Botero-Wolf: [music].