Bancolombia S.A. - ADR

Solid 1Q26 results despite one-offs (but earnings hit by wealth tax): - Net income: COP 1.5tn, -16% YoY, mainly due to the wealth tax accrual. - ROE: 15% (healthy profitability given the macro backdrop). - Offsetting positives: Net interest margin expanded and net fee income rose (digital and fee engines gaining share).

Loan/deposit momentum: funding strength and resilient credit performance: - Gross loans +2.1% QoQ (+2.7% net of FX), +9.6% YoY net of FX—notably resilient in Colombia. - Deposits +2.8% nominal QoQ (+3.4% net of FX), +10.4% YoY nominal—outpacing loan growth, reinforcing a stable low-cost funding base. - Credit quality “solid across segments/geographies”; however some seasonal delinquency formation increased (mostly consumer/mortgages), while 90-day past due fell to 3.3%. - Cost of risk: 1.9% annualized in the quarter, driven by macro risk provisions—asset quality said to remain generally solid.

Margin expansion supported by rate/asset mix; guidance updated upward for NIM: - NIM expanded to ~7.0% (from 6.8% in the prior quarter) with lending NIM improving (7.6% → 7.8%), aided by asset-sensitive repricing and higher investment yields. - Interest rate environment remains a key driver; management expects rates to stay high and keep supporting NIM in the near term.