Bancolombia 1Q 2025 Profits Rose 4.5% Year-on-Year

Medellin-based multinational banking giant Bancolombia announced May 5 that its first quarter (1Q) 2025 net income rose 4.46% year-on-year, to COP$1.73 trillion (US$402 million), versus COP$1.66 trillion (US$386 million) in 1Q 2024.

Quarterly annualized return on equity (ROE) was 16.3% for 1Q 2025 and 15.6% for the last 12 months, while gross loan portfolio rose 7% year-on-year, to COP$279 trillion (US$65 billion), explained by “a decline in the consumer loan portfolio, partially offset by growth in the commercial and mortgage loan portfolios,” according to the company.

Total past-due loan provision charges for 1Q 2025 increased 18.3% compared to 4Q 2024, hitting COP$1.1 trillion (US$256 million), “representing a quarterly annualized cost of credit of 1.59% [as] all segments showed a good performance in provision expense,” according to Bancolombia.

“The basic solvency ratio was 11.16% and the total solvency ratio was 12.91%, comfortably meeting the required regulatory levels,” the company added.

“As of March 31, 2025, Grupo Bancolombia’s assets amounted to COP$364 trillion [US$84.8 billion], decreasing by 2.2% compared to 4Q 2024, mainly due to a lower cash position resulting from the appreciation of dollar balances at a lower exchange rate.

“At the same time, the total loan portfolio balance declined, primarily driven by a contraction in the consumer segment,” the company explained.

During 1Q 2025, the Colombian peso appreciated by 4.9% against the U.S. dollar, but the dollar depreciated by 9.1% over the last 12 months, Bancolombia added.

“Gross loan portfolio decreased compared with the last quarter mainly due to the appreciation of the Colombian peso against the U.S. dollar. Excluding foreign exchange effects, the portfolio would have expanded by 1.3% compared to 4Q 2024, reflecting modest growth attributable to our more stringent origination policies.

“Operations at Banco Agricola (El Salvador), Banistmo (Panama), and Bam (Guatemala) represented 25.5% of the total gross loan portfolio balance in 1Q 2025. The loan portfolio denominated in currencies other than the Colombian peso represented 31.9% of the total portfolio and decreased by 6.4% (measured in U.S. dollars) during the quarter.

“In Colombia, the mortgage and commercial loan portfolios had incremental volumes, while the consumer portfolio decreased except for payroll loans.”

Within Colombia, Bancolombia’s loan portfolio grew by 2.4% in 1Q 2025 compared to the previous quarter and 6.6% over the last 12 months.

“The most significant growth was in the commercial loan portfolio, especially in the corporate segment. The mortgage loan portfolio increased by 4.7% thanks to the interest rate reduction strategy,” according to the company.

“However, the consumer loan portfolio decreased due to a decline in personal loan and credit cards, as the pace of origination was offset with maturities given its short-term nature, alongside our reinforced origination standards for consumer lending.”

Within Colombia, Bancolombia net income for 1Q 2025 rose 10.3% versus 4Q 2024. “Interest income decreased due to treasury operations but was offset by higher loan portfolio income,” according to the company.

“Interest expenses decreased due to lower rates on time deposits. Provision expenses increased as there were no releases in the consumer segment as in the fourth quarter of 2024.

“Operating expenses decreased due to seasonality, although labor costs rose due to salary increases,” the company added.