6-K
Grupo Cibest S.A. (CIB)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2025
Commission File Number 001-32535
Grupo Cibest S.A.
(Translation of registrant’s name into English)
Cra. 48 # 26-85
Medellín, Colombia
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
| Form 20-F ☐ | Form 40-F ☐ |
|---|
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):___
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(2):___
Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
| Yes ☐ | No ☐ |
|---|
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-____________ .
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| GRUPO CIBEST S.A.<br><br>(Registrant) | ||
|---|---|---|
| Date November 14, 2025 | By: | /s/ MAURICIO BOTERO WOLFF. |
| Name: | Mauricio Botero Wolff. | |
| Title: | Vice President of Strategy and Finance |
November 14, 2025
Medellin, Colombia
GRUPO CIBEST S.A. RELEASES QUARTERLY REPORT FOR THE THIRD QUARTER OF 2025
On November 6th of 2025, Grupo Cibest S.A. (“Grupo Cibest”) furnished on Form 6-K a press release presenting financial information for the fiscal quarter ended September 30, 2025 (the “Press Release”).
The quarterly report for the fiscal quarter ended September 30, 2025 (the “Quarterly Report”) is furnished with this Form 6-K.
Readers should be aware that the consolidated financial information in the Press Release, and the consolidated financial information in the Quarterly Report for the fiscal quarter ended September 30, 2025, are the same, and the Quarterly Report is being furnished solely to fulfill a legal reporting requirement in Colombia.Readers should also be aware that all financial information of Grupo Cibest that is included in the Quarterly Report was prepared in accordance with International Financial Reporting Standards.
Quarterly Report
July - September 2025
Grupo Cibest S.A.
Address:
Carrera 48 # 26-85
Medellín, Colombia
ISSUER’S CURRENT SECURITIES
As of September 30, 2025
| Type of Share | Common Share | Preferred Share |
|---|---|---|
| Trading System | Stock Exchange | Stock Exchange |
| Stock Exchanges | Colombian Stock Exchange (BVC) | Colombian Stock Exchange (BVC) |
| Shares in Circulation | 509,125,847 | 445,448,959 |
| Shareholders | 20,545 | 34,895 |
| Issuance amount | 509,704,584 | 452,122,416 |
| Amount placed | 509,704,584 | 452,122,416 |
Until May 16, the common and preferred shares of Grupo Cibest were listed on the Colombian Stock Exchange (BVC) under the issuer Bancolombia, with the ticker symbols BCOLOMBIA and PFBCOLOM. Following the corporate structure changes that took place on May 19, these shares became registered under the name Grupo Cibest, with the new ticker CIBEST and PFCIBEST, respectively.
Additionally, Grupo Cibest has a Level III ADR listed on the NYSE. Each ADR represents four preferred shares.
GRUPO CIBEST SHARE BUYBACK
On June 9, 2025, Grupo Cibest's shareholders' meeting approved the creation of a reserve for the repurchase of shares and a share repurchase program for up to COP 1.35 trillion with a term of one year, starting from the day of approval of the program's rules by the Board of Directors. It also delegated to the Board of Directors the approval of the repurchase rules under which the administration was authorized to execute said program. Based on the above, on July 17, 2025, the repurchase program began in Colombia on the trading systems of the Colombian Stock Exchange through Valores Bancolombia S.A. Comisionista de Bolsa, and in the United States through an Enhanced Open Market Repurchase executed by Morgan Stanley & Co. LLC.
As of September 30, 2025, the results of the program were as follows:
| Type of share | Number of repurchased shares | |
|---|---|---|
| CIBEST (BVC) | $ | 578,737.00 |
| PFCIBEST (BVC) | $ | 3,654,145.00 |
| CIB (NYSE) | 3,019,312* | |
| TOTAL | $ | 7,252,194.00 |
*Number of repurchased ADRs converted into preferred shares.
| ISSUER’S CURRENT SECURITIES | 4 | |||
|---|---|---|---|---|
| GRUPO CIBEST SHARE BUYBACK | 4 | |||
| I. MANAGEMENT’S DISCUSSION & ANALYSIS ON THE RESULTS OF THE OPERATION AND THE FINANCIAL SITUATION OF THE ISSUER, IN RELATION TO THE RESULTS REPORTED IN THE QUARTERLY FINANCIAL STATEMENTS | 7 | |||
| Statement Of Financial Position Grupo Cibest | 7 | |||
| Loan Portfolio | 7 | |||
| Funding | 7 | |||
| Shareholders’ Equity | 8 | |||
| Consolidated Income Statement | 8 | |||
| Net Interest Income & Interest Margin | 8 | |||
| Fees And Income From Services | 9 | |||
| Other Operating Income | 9 | |||
| Dividends Received, And Share Of Profits | 10 | |||
| Asset Quality And Provision Charges | 10 | |||
| Operating Expenses | 10 | |||
| Taxes | 11 | |||
| Consolidated Statement Of Income Grupo Cibest | 12 | |||
| Statement Of Financial Position Grupo Cibest | 13 | |||
| Separate Grupo Cibest | 14 | |||
| II. QUANTITATIVE AND QUALITATIVE ANALYSIS OF THE MARKET RISK TO WHICH THE ISSUER IS EXPOSED AS A RESULT OF ITS INVESTMENTS AND ACTIVITIES SENSITIVE TO MARKET VARIATIONS | 15 | |||
| Consolidated' | 15 | |||
| Non-trading Instruments Market Risk Measurement | 16 | |||
| Interest Risk Exposure (Banking Book) | 16 | |||
| Sensitivity To Interest Rate Risk Of The Banking Book | 16 | |||
| Separated | 16 | |||
| III. MATERIAL VARIATIONS THAT HAVE OCCURRED IN THE RISKS TO WHICH THE ISSUER IS EXPOSED, OTHER THAN MARKET RISK, AND THE MECHANISMS IMPLEMENTED TO MITIGATE THEM | 17 | |||
| Liquidity Risk | 17 | |||
| Consolidated | 17 | |||
| Separated | 17 | |||
| Credit Risk | 18 | |||
| Consolidated | 18 | |||
| Country Risk | 19 | |||
| Consolidated | 19 | |||
| Operational Risk | 20 | |||
| Consolidated | 20 | |||
| Separated | 20 | |||
| Financial Leverage Risk | 20 | |||
| Separated | 20 | Other Relevant Risks | 21 | |
| --- | --- | |||
| • Regulatory And Legal Risk | 21 | |||
| Colombia | 21 | |||
| Panama | 22 | |||
| Guatemala | 22 | |||
| El Salvador | 23 | |||
| • Political Risk | 24 | |||
| Colombia | 24 | |||
| Panama | 25 | |||
| Guatemala | 25 | |||
| El Salvador | 25 | |||
| • Economic And Sectoral Environment | 26 | |||
| Colombia | 26 | |||
| Panama | 27 | |||
| Guatemala | 27 | |||
| El Salvador | 27 | |||
| • Third-party Risks | 28 | |||
| • Business Continuity And Technology Failures | 28 | |||
| • Model Risk | 28 | |||
| • Cybersecurity And Information Security Risk | 28 | |||
| • Internal Fraud Risk | 29 | |||
| • Risk Of Aml/cft | 29 | |||
| • Risk Of External Fraud | 29 | |||
| • Talent Risk | 30 | |||
| IV. MATERIAL CHANGES IN THE INFORMATION REPORTED IN THE CORPORATE GOVERNANCE ANALYSIS CHAPTER DURING THE QUARTER | 30 | |||
| V. MATERIAL CHANGES THAT HAVE OCCURRED IN PRACTICES, PROCESSES, POLICIES AND INDICATORS IN RELATION TO SOCIAL AND ENVIRONMENTAL CRITERIA, INCLUDING CLIMATE CRITERIA. | 30 | |||
| VI. MATERIAL CHANGES PRESENTED IN THE FINANCIAL STATEMENTS OF THE ISSUER BETWEEN THE REPORTED QUARTER AND THE DATE OF TRANSMISSION OF THE INFORMATION | 30 | |||
| VII. GLOSSARY OF TERMS | 30 | |||
| VIII. ANNEXES | 31 | |||
| I. Condensed Consolidated Interim Financial Statements Grupo Cibest | 31 | |||
| Ii. Condensed Separated Interim Financial Statements Grupo Cibest S.a. | 31 |
I.MANAGEMENT’S DISCUSSION & ANALYSIS ON THE RESULTS OF THE OPERATION AND THE FINANCIAL SITUATION OF THE ISSUER, IN RELATION TO THE RESULTS REPORTED IN THE QUARTERLY FINANCIAL STATEMENTS
STATEMENT OF FINANCIAL POSITION GRUPO CIBEST
The analysis presented below for Grupo Cibest Consolidated is based on a comparison with the information reported by Grupo Cibest as of June 30, 2025.
Loan Portfolio
In 3Q25, the gross loan portfolio balance was COP 279,973 billion, representing a quarterly growth of 0.1% and an annual increase of 3.9%. These variations are partly explained by the behavior of the exchange rate, as the Colombian peso appreciated by 3.6% against the dollar during 3Q25 and by 6.0% over the past 12 months. Excluding the exchange rate effect, growth would have been 1.2% and 5.9%, respectively.
On a standalone basis, Bancolombia grew its gross loan portfolio by 1.2%; Bam by 1.8% (measured in USD); Bancoagrícola by 1.5% (measured in USD); while Banistmo registered a decrease of 0.2% (measured in USD).
By segment, the consumer loan portfolio maintained the positive momentum of the previous quarter, with an increase of 2.0% compared to 2Q25 and 2.6% compared to 3Q24. This growth is mainly driven by Bancolombia S.A., which has accumulated six consecutive months of increases in its balance, contrasting with last year’s performance. This quarter’s growth is especially attributable to credit card products, linked to commercial strategies in the Mi Bancolombia app, personal unsecured loans, and Nequi, as well as Bancoagrícola, which continues with risk appetite in consumer lending. To a lesser extent, Banistmo showed a slight quarterly increase, reversing its previous downward trend, while Bam recorded a decrease in the quarter as a result of continued tightening of its origination policies for this segment.
The mortgage loan portfolio also maintained the positive trend of recent quarters, increasing by 1.0% compared to the previous quarter and 8.6% compared to 3Q24. The quarterly increase is attributed to commercial strategies in Colombia, while the dynamics in Central America reflect a decline in Panama, Guatemala, and El Salvador.
Meanwhile, the commercial loan portfolio posted a decrease of 0.9% for the quarter and an annual growth of 2.8%. The quarterly decline is mainly explained by the corporate segment, especially in Bancolombia and Banistmo, where significant prepayments were made.
Provisions for the loan portfolio in the statement of financial position decreased by 2.7% during the quarter, closing at COP 14,370 billion, equivalent to 5.1% of the gross loan portfolio at period-end.
Funding
At the end of 3Q25, customer deposits totaled COP 281,260 billion, representing 85.0% of total liabilities. This balance reflects a decrease of 0.5% compared to 2Q25 and an increase of 8.3% compared to 3Q24.
The quarterly decline is mainly explained by the appreciation of the peso against the dollar; excluding the exchange rate effect, deposits grew 0.7% during the quarter and 10.5% year-over-year. During the quarter, time deposits experienced a decline, mainly due to a reduction in institutional time deposits in Bancolombia. To a lesser extent, savings accounts also decreased, primarily linked to the corporate segment. On the other hand, checking accounts increased during the quarter, driven by the performance of the corporate segment at Bancoagrícola. Long-term debt increased during the quarter due to a bond issuance by Banistmo for USD 75 million.
Regarding the funding mix, sight deposits continue to be the main source, representing 53.6% of the total. Within this category, savings accounts increased their share, accounting for 41.9% of Grupo Cibest’s total funding during the quarter, while checking accounts maintained their share at 11.7%. Conversely, time deposits decreased their share, representing 35.7% of the funding mix. Finally, long-term debt increased its share to 3.7%, driven by the bond issuance at Banistmo.
Shareholders’ Equity
Shareholders’ equity attributable at the end of 3Q25 was COP 42,378 billion, increasing by 2.6% compared to 2Q25 and 3.6% compared to 3Q24. The increase for the quarter is explained by retained earnings during the period.
Reserves showed a decrease of 0.9% in the quarter, mainly attributable to the execution of the share buyback program approved by shareholders of Grupo Cibest at the extraordinary general assembly on June 9, 2025, for a total amount of COP 1.35 trillion, with implementation beginning on July 17, 2025. As of September 30, 2025, 26.7% of the approved amount had been executed, which is equivalent to 7,252,194 shares repurchased, of which 50.4% are preferred shares, 41.6% are ADRs, and 8.0% are common shares.
CONSOLIDATED INCOME STATEMENT
Net income attributable to shareholders totaled COP 2,144 billion in 3Q25, or COP 2,252.53 per share (USD $2.18 per ADR). Net income increased by 19.7% compared to 2Q25, mainly driven by lower provision and operating expenses, as well as higher interest income from debt instruments and valuation of financial instruments. The quarterly annualized return on equity (ROE) for Grupo Cibest was 20.4% in 3Q25 and 17.4% over the last 12 months.
Net Interest Income & Interest Margin
Net interest income totaled COP 5,302 billion in 3Q25, representing an increase of 1.5% compared to 2Q25 and 2.9% compared to 3Q24. This growth was mainly due to a greater reduction in interest expenses relative to the decline in interest income, which was supported by the strong performance of interest income from debt instruments and the valuation of financial instruments, reaching COP 756 billion, a variation of 12.5% compared to the previous quarter. This change was primarily driven by higher yields on debt securities, associated with liquidity portfolio management.
On the other hand, interest income from the loan portfolio decreased during the quarter, mainly due to a reduction in income from the mortgage portfolio, this was particularly evident in loans indexed to the inflation-
linked UVR1 rate at Bancolombia, driven by slower growth in the UVR value compared to the previous quarter. In contrast, interest income from commercial and consumer loans portfolios showed a slight increase over the same period.
Meanwhile, interest expenses decreased by 2.3% compared to the previous quarter and by 10.5% compared to 3Q24. This quarterly variation was mainly explained by lower yields on savings accounts and time deposits at Bancolombia.
The annualized weighted average cost of deposits was 4.05% in 3Q25, representing a decrease of 13 basis points compared to 2Q25. During this quarter, Bancolombia, Bancoagrícola, and Banistmo reduced their cost of deposits, while Bam, on the other hand, recorded an increase linked to its strategy of boosting funding through savings accounts.
As a result, the loan portfolio NIM was 6.98% for the quarter, decreasing by 8 basis points compared to 2Q25 and by 18 basis points compared to 3Q24. The investment NIM stood at 4.21%, representing an increase of 82 basis points over 2Q25. Finally, the consolidated NIM registered an increase of 2 basis points in the quarter, rising from 6.57% to 6.59%, although it showed a decrease of 24 basis points compared to the previous year.
Fees and Income from Services
Net fee and service income in 3Q25 amounted to COP 1,137 billion, representing an increase of 4.1% compared to 2Q25 and 9.5% versus 3Q24.
Fee income increased 3.3% over the quarter, mainly explained by the positive trend observed throughout the year in investment banking and trust services fees related to the execution of financing projects with corporate clients and larger volume of assets under management, particularly in collective investment schemes and private equity funds. To a lesser extent, there was an increase in fees from payments and collections, as well as debit and credit cards and commercial establishments, due to higher transactional volume during the quarter.
Meanwhile, fee expenses rose during the quarter, mainly in banking services, as a result of higher payments to franchises stemming from the increase in transactional volume. It is worth highlighting the slower pace of growth in fee expenses related to banking correspondents during the quarter, as a consequence of adjustments in the operational model for this channel.
Other Operating Income
Total other operating income reached COP 866 billion in 3Q25, representing an increase of 4.3% compared to 2Q25 and 13.6% versus 3Q24. This growth was mainly driven by the net foreign exchange performance, boosted by the appreciation of the exchange rate during the period.
As for operating lease income, it totaled COP 423 billion in 3Q25, reflecting a decline of 2.3% compared to the previous quarter and 5.5% versus the same period last year. This reduction was primarily due to lower activity in vehicle leasing operations through Renting Colombia S.A.S. Nevertheless, it is worth highlighting the increase in real estate lease income, driven by Fondo Inmobiliario Colombia.
1 Inflation-indexed rate based on the Unidad de Valor Real (UVR), a unit of account certified by the Banco de la Republica that reflects changes in purchasing power according to the monthly variation in the Consumer Price Index (IPC).
Dividends Received, and Share of Profits
Total dividends received, and share of profits of equity method investees closed at COP 123 billion in 3Q25, representing an increase of 1.4% compared to 2Q25 and 33.7% versus 3Q24. The quarterly growth was mainly driven by higher dividends, with a notable contribution from Fondo Inmobiliario Colombia thanks to returns from P.A. Viva Malls. Additionally, there was a contribution from Inversiones CFNS, generated by the sale of P.A. Laurel.
On the other hand, although there was a decrease in income from the equity method, it is important to highlight the strong quarterly performance of Tuya S.A., which contributed positively to the annual result.
Asset Quality and Provision Charges
At the close of 3Q25, the principal balance for past due loans for more than 30 days totaled COP 11,791 billion, equivalent to 4.32% of total gross loans, while 90-day past-due totaled reached COP 8,409 billion, representing 3.08%. The decrease in both indicators is attributable to improved portfolio quality in the consumer and SME segments, mainly in Colombia.
Coverage, measured as the ratio between loan loss provisions (principal) and past due loans (over 30 days), stood at 109.93% at the end of 3Q25, higher than the 107.72% reported in 2Q25. Loan deterioration (new past due loans, including write-offs) amounted to COP 664 billion, a lower figure compared to 2Q25, mainly due to the solid performance of the mortgage and consumer loan portfolios.
Provision charges (after recoveries) totaled COP 829 billion during the quarter, representing a decrease of 24.4% compared to 2Q25. This reduction is explained by a release of COP 266 billion resulting from models calibration and lower expense across all segments except for Bancolombia’s corporate segment, due to the recognition of provisions for certain specific clients classified in stage 2.
Provisions as a percentage of average gross loans, quarterly annualized, were 1.18% in 3Q25 and 1.42% over the last 12 months, implying a decrease of 39 and 97 basis points, respectively, reflecting a lower expected loss outlook. Meanwhile, loan loss provisions (for the principal) totaled 12,963 billion, which, although lower than the previous quarter, represents adequate coverage equivalent to 4.7% of gross loans.
Stage 3 continued its decline during the quarter, thanks to the strong performance of the overall loan portfolio. However, Stage 2 did increase, as the model calibration led to the early transfer of clients to this level prior to deterioration.
Operating Expenses
During 3Q25, operating expenses totaled COP 3,601 billion, showing a decrease of 2.4% compared to 2Q25 and an increase of 7.6% versus 3Q24.
The efficiency ratio stood at 48.5% in 3Q25 and 50.4% for the last twelve months. Personnel expenses (salaries, employee benefits, and bonuses) amounted to COP 1,549 billion in the quarter, representing a decrease of 1.6% compared to 2Q25. This variation is explained by the absence of severance payments related to the migration of a group of employees to Grupo Cibest during this period, unlike what occurred in the second quarter. Compared
to 3Q24, there was an increase of 9.7%, mainly due to the annual salary adjustment and higher bonuses, in line with the higher accumulated profits for the year.
General expenses totaled COP 2,052 billion in the quarter, which represented a decrease of 3.0% compared to the previous quarter and an increase of 6.0% versus 3Q24. The quarterly reduction was largely due to lower stamp tax payments and a decrease in expenses related to the corporate evolution towards Grupo Cibest. Likewise, the annual increase was mainly attributable to expenses linked to the corporate evolution towards Grupo Cibest, as well as higher licensing and technology maintenance costs.
As of September 30, 2025, Grupo Cibest had 33,934 employees, 840 branches, 6,126 ATMs, 35,701 banking agents, and more than 32 million customers.
Taxes
The income tax expense for Grupo Cibest amounted to COP 843 billion, resulting in an effective tax rate of 28%, explained by tax benefits in Colombia associated with exempt income from the mortgage loan portfolio for social housing, investments in productive fixed assets, and investments in non-conventional renewable energy, as well as tax benefits in Guatemala, El Salvador, and Panama related to exempt income from returns on securities issued by those governments.
Consolidated Statement of Income Grupo Cibest
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION | Quarter | Change | % of | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (COP million) | 3Q24 | 2Q25 | 3Q25 | 3Q25 / 2Q25 | 3Q25 / 3Q24 | % of Assets | Liabilities | ||||
| ASSETS | |||||||||||
| Cash and balances at central bank | 22,778,795 | 24,244,363 | 24,074,711 | (0.70) | % | 5.69 | % | 6.43 | % | ||
| Interbank borrowings | 2,298,108 | 4,375,272 | 4,008,403 | (8.39) | % | 74.42 | % | 1.07 | % | ||
| Reverse repurchase agreements and other similar secured lend | 1,298,602 | 2,735,369 | 2,413,088 | (11.78) | % | 85.82 | % | 0.64 | % | ||
| Financial assets investment | 35,837,645 | 40,910,075 | 39,704,715 | (2.95) | % | 10.79 | % | 10.60 | % | ||
| Derivative financial instruments | 2,464,399 | 3,239,291 | 4,042,125 | 24.78 | % | 64.02 | % | 1.08 | % | ||
| Loans and advances to customers | 269,568,504 | 279,771,687 | 279,972,623 | 0.07 | % | 3.86 | % | 74.73 | % | ||
| Allowance for loan and lease losses | (16,518,267) | (14,771,088) | (14,370,189) | (2.71) | % | (13.00) | % | (3.84) | % | ||
| Investment in associates and joint ventures | 2,920,853 | 3,045,408 | 3,064,302 | 0.62 | % | 4.91 | % | 0.82 | % | ||
| Goodwill and Intangible assets, net | 9,271,404 | 9,056,528 | 8,772,703 | (3.13) | % | (5.38) | % | 2.34 | % | ||
| Premises and equipment, net | 5,870,602 | 5,608,169 | 5,601,012 | (0.13) | % | (4.59) | % | 1.50 | % | ||
| Investment property | 5,467,963 | 5,761,117 | 6,027,496 | 4.62 | % | 10.23 | % | 1.61 | % | ||
| Right of use assets | 1,676,615 | 1,525,340 | 1,488,727 | (2.40) | % | (11.21) | % | 0.40 | % | ||
| Prepayments | 871,958 | 923,716 | 929,134 | 0.59 | % | 6.56 | % | 0.25 | % | ||
| Tax receivables | 2,536,230 | 1,832,435 | 2,138,254 | 16.69 | % | (15.69) | % | 0.57 | % | ||
| Deferred tax | 729,232 | 639,837 | 606,607 | (5.19) | % | (16.82) | % | 0.16 | % | ||
| Assets held for sale and inventories | 945,484 | 816,784 | 832,367 | 1.91 | % | (11.96) | % | 0.22 | % | ||
| Other assets | 5,415,170 | 5,536,423 | 5,325,580 | (3.81) | % | (1.65) | % | 1.42 | % | ||
| Total assets | 353,433,297 | 375,250,726 | 374,631,658 | (0.16) | % | 6.00 | % | 100.00 | % | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| LIABILITIES | |||||||||||
| Deposit by customers | 259,758,641 | 282,647,329 | 281,259,655 | (0.49) | % | 8.28 | % | 75.08 | % | 84.96 | % |
| Interbank Deposits | 725,285 | 811,328 | 882,390 | 8.76 | % | 21.66 | % | 0.24 | % | 0.27 | % |
| Derivative financial instrument | 2,537,577 | 3,524,458 | 4,760,502 | 35.07 | % | 87.60 | % | 1.27 | % | 1.44 | % |
| Borrowings from other financial institutions | 12,935,146 | 11,431,252 | 11,653,378 | 1.94 | % | (9.91) | % | 3.11 | % | 3.52 | % |
| Debt securities in issue | 14,388,708 | 10,388,366 | 11,441,859 | 10.14 | % | (20.48) | % | 3.05 | % | 3.46 | % |
| Lease liability | 1,829,899 | 1,635,793 | 1,596,793 | (2.38) | % | (12.74) | % | 0.43 | % | 0.48 | % |
| Preferred shares | 569,477 | 555,152 | 568,928 | 2.48 | % | (0.10) | % | 0.15 | % | 0.17 | % |
| Repurchase agreements and other similar secured borrowing | 2,846,946 | 3,940,354 | 3,174,591 | (19.43) | % | 11.51 | % | 0.85 | % | 0.96 | % |
| Current tax | 1,109,561 | 1,248,967 | 2,074,043 | 66.06 | % | 86.92 | % | 0.55 | % | 0.63 | % |
| Deferred tax | 2,215,517 | 2,771,024 | 2,758,701 | (0.44) | % | 24.52 | % | 0.74 | % | 0.83 | % |
| Employees benefit plans | 907,574 | 928,875 | 931,137 | 0.24 | % | 2.60 | % | 0.25 | % | 0.28 | % |
| Other liabilities | 11,694,460 | 12,983,542 | 9,939,670 | (23.44) | % | (15.01) | % | 2.65 | % | 3.00 | % |
| Total liabilities | 311,518,791 | 332,866,440 | 331,041,647 | (0.55) | % | 6.27 | % | 88.36 | % | 100.00 | % |
| SHAREHOLDERS’ EQUITY | |||||||||||
| Share Capital | 480,914 | 480,914 | 480,914 | 0.00 | % | 0.00 | % | 0.13 | % | ||
| Additional paid-in-capital | 4,857,454 | 4,857,491 | 4,857,491 | 0.00 | % | 0.00 | % | 1.30 | % | ||
| Appropriated reserves | 22,634,127 | 23,702,075 | 23,499,086 | -0.86 | % | 3.82 | % | 6.37 | % | ||
| Retained earnings | 7,279,088 | 7,094,311 | 9,047,848 | 27.54 | % | 24.30 | % | 2.42 | % | ||
| Accumulated other comprehensive income, net of tax | 5,647,853 | 5,159,284 | 4,492,518 | (12.92) | % | (20.46) | % | 1.20 | % | ||
| Stockholders’ equity attributable to the owners of the parent company | 40,899,436 | 41,294,075 | 42,377,857 | 2.62 | % | 3.61 | % | 11.31 | % | ||
| Non-controlling interest | 1,015,070 | 1,090,211 | 1,212,154 | 11.19 | % | 19.42 | % | 0.32 | % | ||
| Total liabilities and equity | 353,433,297 | 375,250,726 | 374,631,658 | (0.16) | % | 6.00 | % | 100.00 | % |
Statement of financial position Grupo Cibest
| INCOME STATEMENT | As of | Change | Quarter | Change | ||||
|---|---|---|---|---|---|---|---|---|
| (COP million ) | 3Q24 | 3Q25 | 3Q25 / 3Q24 | 3Q24 | 2Q25 | 3Q25 | 3Q25 / 2Q25 | 3Q25/ 3Q24 |
| Interest on loan portfolio and financial leasing operations | ||||||||
| Commercial | 12,529,974 | 11,669,717 | (6.87)% | 4,171,772 | 3,913,159 | 3,928,393 | 0.39% | (5.83)% |
| Consumer | 6,404,890 | 6,002,355 | (6.28)% | 2,064,678 | 2,005,778 | 2,019,276 | 0.67% | (2.20)% |
| Mortgage | 2,920,392 | 3,176,554 | 8.77% | 887,935 | 1,104,959 | 975,125 | (11.75)% | 9.82% |
| Leasing | 2,741,999 | 2,423,396 | (11.62)% | 869,870 | 810,638 | 812,528 | 0.23% | (6.59)% |
| Small Business | 154,170 | 211,134 | 36.95% | 49,187 | 70,981 | 78,711 | 10.89% | 60.02% |
| Total interest on loan portfolio and financial leasing operations | 24,751,425 | 23,483,156 | (5.12)% | 8,043,442 | 7,905,515 | 7,814,033 | (1.16)% | (2.85)% |
| Interest on debt instruments measured by the effective interest method | 734,322 | 711,940 | (3.05)% | 236,410 | 238,111 | 240,099 | 0.83% | 1.56% |
| Total interest income from financial instruments measured by the effective interest method | 25,485,747 | 24,195,096 | (5.06)% | 8,279,852 | 8,143,626 | 8,054,132 | (1.10)% | (2.73)% |
| Interbank funds sold | 173,880 | 140,157 | (19.39)% | 47,462 | 42,484 | 46,704 | 9.93% | (1.60)% |
| Valuation of financial instruments | 1,236,360 | 1,314,781 | 6.34% | 527,804 | 433,823 | 515,806 | 18.90% | (2.27)% |
| Total interest income and valuation of financial instruments | 26,895,987 | 25,650,034 | (4.63)% | 8,855,118 | 8,619,933 | 8,616,642 | (0.04)% | (2.69)% |
| Interest expense | (11,398,483) | (10,056,381) | (11.77)% | (3,702,518) | (3,393,009) | (3,313,913) | (2.33)% | (10.50)% |
| Net interest margin and valuation of financial instruments before provision for loan impairment, off-balance sheet commitments, and other financial instruments | 15,497,504 | 15,593,653 | 0.62% | 5,152,600 | 5,226,924 | 5,302,729 | 1.45% | 2.91% |
| Provision for loan portfolio impairment and financial leasing operations, net | (4,485,195) | (3,049,740) | (32.00)% | (1,527,271) | (1,058,095) | (888,121) | (16.06)% | (41.85)% |
| Recovery (Provision) for other financial instruments, net | -37,404 | 24,935 | (166.66)% | (61,565) | (38,240) | 59,200 | (254.81)% | (196.16)% |
| Total provisions and impairment of credit risk, net | (4,522,599) | (3,024,805) | (33.12)% | (1,588,836) | (1,096,335) | (828,921) | (24.39)% | (47.83)% |
| Net income from interest and valuation of financial instruments after provisions and impairment | 10,974,905 | 12,568,848 | 14.52% | 3,563,764 | 4,130,589 | 4,473,808 | 8.31% | 25.54% |
| Commission income | 5,602,717 | 6,068,388 | 8.31% | 1,902,779 | 2,039,950 | 2,107,203 | 3.30% | 10.74% |
| Commission expenses | (2,509,509) | (2,821,806) | 12.44% | (864,435) | (948,070) | (970,269) | 2.34% | 12.24% |
| Total income from Commissions, net | 3,093,208 | 3,246,582 | 4.96% | 1,038,344 | 1,091,880 | 1,136,934 | 4.13% | 9.49% |
| Other operating income | 2,132,726 | 2,533,590 | 18.80% | 762,313 | 830,720 | 866,299 | 4.28% | 13.64% |
| Dividends and other net income from equity participation | (48,767) | 381,695 | (882.69)% | 92,001 | 121,351 | 123,019 | 1.37% | 33.71% |
| Total net income | 16,152,072 | 18,730,715 | 15.96% | 5,456,422 | 6,174,540 | 6,600,060 | 6.89% | 20.96% |
| Operating expenses | ||||||||
| Salaries and employee benefits | (4,094,895) | (4,654,843) | 13.67% | (1,411,548) | (1,575,154) | (1,549,165) | (1.65)% | 9.75% |
| Other administrative and general expenses | (3,813,107) | (4,205,214) | 10.28% | (1,320,342) | (1,456,909) | (1,409,124) | (3.28)% | 6.72% |
| Taxes other than income tax | (1,125,119) | (1,122,576) | (0.23)% | (344,293) | (389,937) | (376,173) | (3.53)% | 9.26% |
| Amortization, depreciation, and impairment | (804,306) | (801,323) | (0.37)% | (270,562) | (268,544) | (266,522) | (0.75)% | (1.49)% |
| Total operating expenses | (9,837,427) | (10,783,956) | 9.62% | (3,346,745) | (3,690,544) | (3,600,984) | (2.43)% | 7.60% |
| Profit before income tax | 6,314,645 | 7,946,759 | 25.85% | 2,109,677 | 2,483,996 | 2,999,076 | 20.74% | 42.16% |
| Income tax | (1,648,395) | (2,196,712) | 33.26% | (590,192) | (655,050) | (842,750) | 28.65% | 42.79% |
| Net profit | 4,666,250 | 5,750,047 | 23.23% | 1,519,485 | 1,828,946 | 2,156,326 | 17.90% | 41.91% |
| Non-controlling interest | 61,810 | 76,977 | 24.54% | 18,291 | 37,643 | 12,223 | (67.53)% | (33.17)% |
| Net profit for the year attributable to shareholders of the parent company | 4,604,440 | 5,673,070 | 23.21% | 1,501,194 | 1,791,303 | 2,144,103 | 19.70% | 42.83% |
Separate Grupo Cibest
At the end of the period, Grupo Cibest S.A.’s total assets amounted to COP 46.5 trillion, mainly driven by the increase in investments in subsidiaries linked to the net income of the period. Liabilities reached COP 3.6 trillion, explained by the capitalization of the new subsidiary Cibest Panamá Assets S.A., with the balance recorded as an account payable, and the transfer of funds scheduled for the fourth quarter. Equity stood at COP 42.9 trillion, boosted by higher retained earnings for the period, along with other accumulated comprehensive income.
II.QUANTITATIVE AND QUALITATIVE ANALYSIS OF THE MARKET RISK TO WHICH THE ISSUER IS EXPOSED AS A RESULT OF ITS INVESTMENTS AND ACTIVITIES SENSITIVE TO MARKET VARIATIONS
Market risk refers to the risk of losses due to changes in equity prices, interest rates, foreign-exchange rates and other indicators whose values are set in a public market. It also refers to the probability of unexpected changes in net interest income and economic value of equity as a result of a change in market interest rates.
Consolidated'
The analysis presented below for Grupo Cibest Consolidated is based on a comparison with the information reported by Grupo Bancolombia as of December 31, 2024.
The guidelines, policies and methodologies for market risk management are maintained in accordance with what was revealed for Grupo Bancolombia as of December 31, 2024.
Total market risk exposure of Grupo Cibest Consolidated decreased by 28.7%, from COP 1,697,566 million in December 2024 to COP 1,210,823 million in September 2025. This variation is primarily explained by a lower exposure to the foreign exchange risk factor, due to a reduction in positions denominated in U.S. dollars. Conversely, the interest rate risk factor increased, driven by higher exposure to private debt securities and foreign currency interest rate derivatives. The stock price risk factor also rose, associated with greater exposure to equity instruments within the Valores Bancolombia’s portfolio. Lastly, the collective investment funds risk factor recorded an increase, explained by the appreciation of the Colombia Inmobiliario Fund.
The following table presents the total change in market risk and other risk factors:
| September 2025 | ||||
|---|---|---|---|---|
| In millions of COP | ||||
| Factor | End of Period | Average | Maximum<br>January, 2025 | Minimum<br>April, 2025 |
| Interest rate | 596,840 | 556,767 | 499,712 | 524,034 |
| Exchange rate | 166,585 | 308,454 | 751,796 | 79,062 |
| Stock price | 383,929 | 375,620 | 367,615 | 375,015 |
| Collective investment funds | 63,469 | 41,878 | 35,781 | 36,608 |
| Total Value at Risk | 1,210,823 | 1,282,719 | 1,654,904 | 1,014,719 |
| December 2024 | ||||
| --- | --- | --- | --- | --- |
| In millions of COP | ||||
| Factor | End of Period | Average | Maximum<br>November, 2025 | Minimum<br>January, 2025 |
| Interest rate | 540,397 | 507,425 | 586,194 | 453,240 |
| Exchange rate | 764,920 | 554,900 | 759,703 | 364,421 |
| Stock price | 360,287 | 351,134 | 356,794 | 346,694 |
| Collective investment funds | 31,962 | 25,653 | 31,473 | 18,005 |
| Total Value at Risk | 1,697,566 | 1,439,112 | 1,734,164 | 1,182,360 |
*As of September 30, 2025, the proprietary cryptocurrency portfolio of Wenia amounted to USD 1.45 million, with a Value at Risk (VaR) of USD 11.3 thousand. The VaR was calculated using an internal methodology
based on a Dinamic Conditional Correlation (DCC) GARCH model, with a one-day time horizon and a 99% of confidence level.
On the other hand, regarding the VaR measured with the internal, no relevant variations were identified in the VaR metrics at the end of the quarter, nor were any exceedances of the approved limits.
It is important to mention that these exposures are subject to ongoing monitoring by Senior Management and serve as a decision-making tool that helps preserve the stability of the Group.
Non-trading Instruments Market Risk Measurement
The banking book’s relevant risk exposure is interest rate risk, which is the probability of unexpected changes in net interest income or in the economic value of equity as a result of a change in market interest rates. Changes in interest rates affect the income of Grupo Cibest Consolidated due to differences in the repricing of the assets and liabilities. The management of interest rate risk arising from banking activities in non-trading instruments by analyzing the interest rate mismatches between its interest earning assets and its interest bearing liabilities, and estimates the impact on the net interest income and the economic value of equity. Foreign exchange exposures arising in the banking book are transferred to the treasury book for management.
Interest Risk Exposure (Banking Book)
Grupo Cibest Consolidated conducts an interest rate risk sensitivity analysis by estimating the impact on the net interest margin of each position in the banking book using a repricing model and assuming a positive parallel shift of 100 basis points in interest rates.
The principles and guidelines for interest rate risk management in the banking book remain consistent with those disclosed for Grupo Bancolombia as of December 31, 2024.
Sensitivity To Interest Rate Risk Of The Banking Book
As of September 30, 2025, the net sensitivity of the banking book in local currency to parallel shifts of 100 basis points in interest rates was COP 310,530 million, representing a decrease of COP 36,718 million compared to December 2024. This reduction is mainly due to the increase in the balance of CDTs with maturities of less than one year and the continued implementation of hedging strategies.
On the other hand, the sensitivity of the Net Interest Margin (NIM) in foreign currency to a parallel shift of 100 basis points in interest rates decreased by USD 7.2 million between December 31, 2024, and September 30, 2025, reaching USD 0.4 million. This increase is mainly explained by the growth of the loan portfolio in Banistmo, Bancolombia Panama, and Bancoagrícola, an effect that was partially offset by the increase in deposit accounts and CDTs across all entities.
Separated
Grupo Cibest measures market risk exposure using a Value at Risk (VaR) methodology based on weighted historical simulation, with a 99% confidence level and a 10-day time horizon.
As of September 30, 2025, VaR registered a total value of COP 694,596 million, resulting from exposure to the exchange rate factor, originating from the position denominated in U.S. dollars corresponding to a total of COP 4.4 trillion. Additionally, although to a lesser extent, the COP 3,387 million participation in the Renta Liquidez Investment Fund contributed to a slight diversification
| Risk factor | September 30th, 2025 |
|---|---|
| In millions of COP | |
| End of period | |
| Exchange rate | 694,607 |
| Collective investment funds (1) | (11) |
| Total VaR | 694,596 |
(1) The Collective Investment Fund has a negative correlation with respect to the exchange rate position, generating a diversification effect, which contributes to a reduction in the total market risk of the portfolio.
III.MATERIAL VARIATIONS THAT HAVE OCCURRED IN THE RISKS TO WHICH THE ISSUER IS EXPOSED, OTHER THAN MARKET RISK, AND THE MECHANISMS IMPLEMENTED TO MITIGATE THEM
LIQUIDITY RISK
Liquidity risk is understood as the inability to fully and timely meet payment obligations on their due dates due to insufficient liquid resources and/or the need to incur excessive funding costs. Situations such as downgrades in Grupo Cibest Consolidated’s credit ratings would increase the cost of funds and hinder its ability to attract deposits or renew maturing debt.
Consolidated
The analysis presented below for Grupo Cibest Consolidated is based on a comparison with the information reported as of June 30, 2025.
The principles and guidelines for liquidity risk management remain consistent with those disclosed as of June 30, 2025.
During the analysis period, Grupo Cibest Consolidated maintained sufficient liquidity levels, which allowed it to meet all internal and regulatory indicators. Additionally, liquidity monitoring did not report any alerts indicating potential risk, and liquid assets comfortably exceeded the established limits to cover the liquidity requirements.
The coverage ratio increased from 236.56% in June 2025 to 253.59% in September 2025, explained by lower net liquidity requirements at 30 days given the reduction in the projection of contractual outflows in Colombia and Panama, mainly due to lower projected maturities on time deposits and passive liquidity operations.
Separated
To estimate liquidity risk, a cash flow is calculated to ensure that liquid assets held are sufficient to cover potential net cash outflows in 30 days. The liquidity indicator is presented as follows:
| Liquidity Coverage Ratio | September 30, 2025 | Junio 30, 2025 |
|---|---|---|
| In millions of COP | ||
| Net cash outflows into 30 days | (8,832) | 19,162 |
| Liquid Assets | 55,526 | 5,264 |
| Liquidity coverage ratio | 46,694 | 24,426 |
The liquidity indicator increased in June 2025 from COP 24,426 million to COP 46,694 million in September 2025. This variation reflects an improvement in the backing capacity of liquid assets against liquidity requirements. This increase is mainly explained by the increase in liquid assets due to a higher level of available cash flow of COP 51,428 million.
Contractual maturities of financial assets and liabilities
Contractual maturities of principal on financial assets and interest payments are presented below:
Contractual maturities of assets at September 2025
| Assets | 0-30 days | 31 days -1 year | 1-3 years | 3-5 years | Over 5 years |
|---|---|---|---|---|---|
| In millions of COP | |||||
| Cash and cash equivalents | 53,305 | - | - | - | - |
| Securities | 624,286 | 442,749 | - | - | - |
| Total Assets | 677,591 | 442,749 | - | - | - |
Contractual maturities of principal on liabilities and interest payments are presented below:
Contractual maturities of liabilities at September 2025
| Liabilities | 0-30 days | 31 days -1 year | 1-3 years | 3-5 years | Over 5 years |
|---|---|---|---|---|---|
| In millions of COP | |||||
| Financial obligations | - | 1,454,330 | - | - | - |
| Preferred stock | - | - | - | - | 568,928 |
| Total Liabilities | - | 1,454,330 | - | - | 568,928 |
CREDIT RISK
Credit risk represents the likelihood that Grupo Cibest Consolidated may incur financial losses due to a counterparty, issuer, or debtor failing to meet their contractual obligations. It also encompasses losses resulting from credit rating downgrades, reduced earnings and returns, concessions granted during debt restructurings, and recovery-related costs. As the most significant risk inherent to banking operations, credit risk is actively managed throughout each phase of the credit cycle.
Consolidated
As of the third quarter of 2025, Colombia’s economy recorded moderate growth, while Panama and Guatemala maintained robust performance. In contrast, El Salvador showed a slowdown compared to the end of 2024. In Colombia, the favorable trend in sectors such as entertainment, agriculture, and commerce has been supported by the gradual reduction in interest rates and the moderation of inflation—factors that have driven household consumption. Panama and Guatemala, meanwhile, stand out for their strong momentum in the services sector, private consumption, and government spending, while El Salvador continues to navigate its fiscal consolidation process. However, global uncertainty stemming from rising geopolitical and trade tensions persists, leading to increased investor caution and affecting the overall economic outlook.
In response to this situation, Grupo Cibest Consolidated has maintained support for its clients with the aim of ensuring proactive credit risk management and evaluating specific conditions and requests to meet their credit needs, as well as developing methodologies, tools, and models to optimize collections. The monitoring and review of credit portfolios from different perspectives continue to be a key factor in identifying and enhancing the implementation of proactive strategies at various stages of the credit cycle.
Grupo Cibest Consolidated´s loan portfolio as of September 2025, compared to June 2025, showed a slight increase of 0.07% in the consolidated portfolio balance in pesos. This growth was achieved despite the revaluation of the peso against the dollar, which impacted the portfolio’s value when expressed in that currency. However, the increase in disbursements was driven mainly by the mortgage and consumer loan portfolios in Colombia, as well as in the commercial portfolios of the Central American banks where the Group operates, contributed maintain the overall stability of the loan portfolio.
The 30-day past due loan ratio (consolidated) stood at 4.71% as of September 2025, showing a decrease compared to 4.94% in June 2025. The level of past-duee loans is mainly impacted by the improvement in the quality of the retail loan portfolio, particularly in consumer and mortgage products. The management of all portfolios continues across the different stages of the credit cycle to anticipate the materialization of risks, reflecting positive outcomes from the portfolio containment and recovery strategies designed and implemented.
The credit cost for Grupo Cibest Consolidated in the third quarter of 2025 was 1.2%, lower than the indicator recorded in June 2025, which was 1.6%. The decrease in this result is explained by the solid performance of all business during the period.
COUNTRY RISK
This risk refers to the possibility of Grupo Cibest Consolidated incurring losses as a result of financial operations abroad through Bancolombia, Banca de Inversión Bancolombia S.A.,Valores Bancolombia S.A. and Fiduciaria Bancolombia S.A, due to adverse economic and/or political conditions in the country receiving those operations, either because of restrictions on the transfer of foreign exchange or because of factors not attributable to the commercial and financial condition of the country receiving those operations. This definition includes, but is not limited to, sovereign risk (SR) and transfer risk (TR) associated with such factors.
Consolidated
The guidelines, policies and methodologies for country risk management are maintained in accordance with what was revealed as of June 30, 2025.
At of the end of September 2025, compared to June 2025, no alerts were reported for any of the investments subject to country risk. Likewise, there were no downgrades in the country risk ratings of the countries where the Group holds such investments. Within Grupo Cibest Consolidated, the portfolio of investments subject to country risk assessment has undergone a reallocation of investment companies. Additionally, the value of the investments that remain in the portfolio has declined due to revaluation factors.
OPERATIONAL RISK
Operational risk is the probability that Grupo Cibest will suffer losses as a result of failures or inadequacies in systems, processes, people, infrastructure, or due to external causes or events. Operational risk can also arise from flaws in the management models or information used. The operational risk management system has not changed since the previous quarter regarding regulations, policies, manuals, methodologies, structure, or any other relevant elements that may impact its effectiveness.
Grupo Cibest has an corporate operational risk management framework, which aims to adequately manage risks to minimize, avoid, or reduce the occurrence of adverse events and/or reduce their consequences or costs if they do occur. During the third quarter of the current year, no new risks or changes in existing risks were identified that significantly modify Grupo Cibest´s operational risk exposure.
Consolidated
Losses incurred during the third quarter of 2025 reached COP 82,460 million, representing a 20% increase compared to the second quarter of the same year. This increase is primarily due to provisions generated by claims related to fraud and transactional consistency issues with transfers in Nequi. To mitigate these risks, Grupo Cibest makes ongoing adjustments to transactional and behavioral monitoring and conducts security campaigns to mitigate social engineering fraud.
Separated
Losses incurred during the third quarter of 2025 reached COP 82,274 million, representing an 18% increase compared to the second quarter of the same year. For the reasons explained above, this increase is primarily due to claims related to fraud and technological failures in the processing of monetary transactions at Nequi.
FINANCIAL LEVERAGE RISK
Separated
Grupo Cibest monitors its financial structure using the double leverage ratio, a key indicator that reflects the level of indebtedness used to finance investments in subsidiaries. This metric helps assess the risk that the holding company may face financial strain or solvency issues when such investments are primarily funded through debt, creating a two-tier leverage structure:
•At the holding company level, where debt is incurred to invest in subsidiaries.
•At the subsidiary level, where each entity may also carry its own debt.
As of September 2025, Grupo Cibest’s double leverage ratio stood at 105.7%, based on the book value of investments in subsidiaries of COP 45,325 billion, compared to Grupo Cibest’s accounting equity of COP 42,868 billion.
This level remains within the internal thresholds established by management and is subject to continuous monitoring as part of Grupo Cibest's financial risk management practices.
OTHER RELEVANT RISKS
The following is an analysis of the most significant risks for Grupo Cibest Consolidated as of September 30, 2025:
•Regulatory And Legal Risk
During the third quarter of 2025, relevant regulatory changes were recorded in Colombia, Panama, Guatemala, and El Salvador that could have fiscal, accounting, and operational implications.
Colombia
Regarding enacted regulation, the following stand out:
•Decree 1069 of 2025, related to payment orders and fund transfers to incorporate rules regarding immediate inter-entity and intra-entity transfers (within and outside the Bre-B ecosystem, when regulation allows it). In particular, the Decree includes a provision requiring the Bank to maintain a 99.5% availability in its transnational services, implying new technological obligations.
•External Circular 015 of 2025 from the SFC, which provides guidance on the Environmental and Social Risk Management System (SARAS), requiring the Bank to comply with new management and reporting standards for the SFC, although outside the Integrated Risk Management System (SIAR).
Regarding regulatory projects, the following are noteworthy:
•Financing Bill, through which the government aims to raise COP 16 trillion via new taxes and modifications to existing ones. Key provisions por Bancolombia include: i) an increase of 15 percentage points in the income tax surcharge for financial institutions (currently 5PPs); ii) new taxes on operations with significant economic presence; and iii) cross-sector taxes impacting financeable sectors and economic performance.
•Draft Decree (PD) on financial portability, which seeks to create an interoperable mechanism allowing financial consumers to request a change of entity for certain financial products (credit products). This project will entail implementation, operational, and mandatory data disclosure burdens, to be defined once the SFC issues instructions.
•PD on fiduciary market architecture, aiming to regulate a sector currently governed largely by judicial decisions rather than regulatory authorities. The project proposes a division of risks between fiduciary and non-fiduciary actors, with expected adjustments to ensure proper distribution of responsibilities, especially in real estate schemes.
•Draft External Circular (PCE) from the Financial Superintendence regulating exposures to related parties of credit institutions. Pressure on limits may arise depending on definitions in the final version.
•PCE from the Superintendence of Industry and Commerce (SIC), which defines instructions for data handling in Fintech ecosystems. Although unspecified, it remains unclear whether these instructions will extend to financial institutions supervised by the SFC.
Panama
Regarding enacted regulation, the following stand out:
•Law 481 of 2025, establishes a preferential interest regime for certain mortgage loans. The State will subsidize the lower amount between the rate set in the law’s preferential brackets and up to 85% of the interest rate offered by the bank for the corresponding loan. The law repeals the provision requiring banks to conduct a financial evaluation of the beneficiary 6–12 months before the subsidy ends.
•Agreement No. 7 (August 5, 2025), establishes principles and minimum criteria to be considered for evaluating and determining the degree of local systemic importance of banks. This agreement sets out definitions, factors, and methodology for identifying what should be considered a locally systemic bank and also determines an additional capital buffer applicable to these banks (between 0.5% and 1% of additional solvency by 2030).
It also establishes responsibilities for the banks’ Board of Directors regarding the internal assessment of compliance with the required capital under the Agreement and the approval of action plans in case of capital buffer shortfalls until the minimum requirement is met.
The Banking Superintendency will review annually the list of systemically important banks based on data corresponding to figures from December of each year reported in January and the established factors. Additionally, through a reasoned resolution, it will determine a bank’s locally systemic condition and the specific level of capital required according to the criteria set forth in this Agreement, from which point the bank must comply with these requirements as long as it maintains such condition. As of today, Banistmo would classify as a locally systemic bank.
Guatemala
Regarding enacted regulation:
•Official Letter No. 6673-2025 from the Superintendence of Banks, notifies the extraterritorial application of the U.S. Anti-Fentanyl Law, warning financial institutions about risks of relationships with foreign entities linked to fentanyl trafficking. Enhanced due diligence and monitoring are recommended.
•Decree 8-2025, amends the Competition Law (Decree 32-2024). Key changes include: i) clarification of cases exempt from authorization for economic concentrations; ii) definition of the Board’s internal regulations; iii) expanded powers to approve organizational and remuneration regulations; iv) mandatory rotation of the Board presidency every two years without reelection; and v) requirement for collegial deliberation in decision-making.
Regarding regulatory projects:
•Personal Data Protection Law (Initiative 6572): establishes principles and procedures to ensure privacy and data protection.
•Anti-Usury and Debt Collection Protection Law (Initiative 6614): aims to penalize abusive collection practices and set limits on interest and fees.
•Comprehensive Anti-Money Laundering and Terrorism Financing Law (Initiative 6593): modernizes AML regulations and expands obligated entities per GAFILAT2 standards.
Congress has shown low legislative productivity in 2025 due to lack of consensus and few plenary sessions, creating regulatory uncertainty as initiatives stall.
El Salvador
Regarding enacted regulation:
•Investment Banking Law, regulates financial entities operating exclusively with sophisticated investors (individuals or entities with investment experience and at least U.S. 250,000 in liquid assets). Unlike commercial banks, Investment Banks may conduct operations in local and foreign currency and, with authorization, offer services and structure products based on Bitcoin, stablecoins, tokenized assets, etc. These entities are subject to more flexible regulatory requirements. The Central Reserve Bank has issued three new accounting and financial standards and amended twelve technical standards to include Investment Banks as regulated entities.
•Law for Financial System Stability and Deposit Guarantee, regulates recovery and resolution processes for financial entities. This regulation seeks to preserve the stability of the financial system, ensure the continuity of essential financial services, and protect depositors’ rights in crisis situations, prioritizing public interest over private interest. The law establishes the creation and operation of the Financial Stability Committee, responsible for coordinating the monitoring and evaluation of the financial system, tracking systemic risk, and executing preventive or management actions in the event of systemic financial crises. It also regulates the legal framework of the Deposit Guarantee Institute, a public entity whose function is to secure public deposits.
One of the most relevant changes introduced by this law is the increase in the premium that financial institutions must pay to the Deposit Guarantee Institute to 0.15% annually (versus 0.1% previously), calculated on the monthly daily average of total deposits from the previous quarter. This increase will be implemented gradually over three years from the law’s effective date. Finally, this regulation repeals sections of the Banking Law related to the regulation, restructuring, intervention, and liquidation of financial institutions, as well as the regime applicable to the Deposit Guarantee Institute.
•Temporary Technical Standards for Calculating the Liquidity Reserve on Deposits and Other Obligations (NPBT-16) issued by the Central Reserve Bank. This standard repeals the Temporary Technical Standards for Calculating the Liquidity Reserve on Deposits and Other Obligations (NPBT-15) and modifies provisions regarding the liquidity of the financial system. The new regulation
2 GAFILAT: Grupo de Acción Financiera de Latinoamérica
aims to govern the required liquidity reserve during the period from October 2025 to March 2026. During this period, banks will maintain the temporary parameters for the Liquidity Reserve requirement established in the standard to strengthen the financial system’s liquidity and ensure its stability. Additionally, investment banks are included as new obligated entities, differentiated applicable coefficients are introduced, and tokenized securities are incorporated as instruments subject to reserve requirements.
•Political Risk
During the third quarter of 2025, several factors were identified that could represent relevant political risks for the countries of Colombia, Panama, Guatemala, and El Salvador.
Colombia
At the local level during the third quarter of 2025, in Colombia political risk revolved around difficulties in the government’s administrative management and the country’s economic performance. In particular, the discussion has focused on budgetary and fiscal matters that will continue to affect debt ratings, investor confidence, and the business environment in the country. Although Congress approved a budget for 2026 that is COP 10 trillion lower than what the government intended, it is still underfunded by COP 16 trillion (or COP 35.4 trillion according to the Autonomous Committee of the Fiscal Rule), which will depend on the passage of the Financing Law that will face a complex process in Congress during the pre-election year.
The country’s fiscal results will continue to impact monetary policy due to their potential inflationary implications. It is also noteworthy that the government’s constant criticism of the Central Bank’s management (alleging decisions driven by political rather than technical motivations) could be affecting the institution’s credibility and trust.
In terms of institutional framework, the government has deepened its trend of appointing individuals close to the political movement to occupy certain positions.
On the judicial front, important decisions remain pending that could have economic and political implications for the country. The Constitutional Court still has to rule on the constitutionality of the pension reform, which could impact capital market flows. Likewise, several lawsuits have been filed before the Council of State regarding the General Budget of the Nation and the escape clause of the Fiscal Rule, which could lead to changes in the budget and fiscal needs for 2026. The government has also been critical of judicial decisions that do not favor it, again pointing to alleged political interests.
Externally, diplomatic relations between Colombia and the United States are going through a complex moment due to discussions between the presidents of both countries. This situation could result in: (i) the materialization of cuts to resources that the United States sends to Colombia as indicated by the U.S. president (adding to the complex budgetary outlook); (ii) the imposition of new tariffs on Colombia (with a low probability of occurrence according to recent statements) with implications for the conditions of the FTA. It is worth noting that this situation could significantly impact the economic framework, especially regarding external accounts, which already face complex challenges.
Panama
During the third quarter of 2025, Panama entered a phase of political stability following agreements between the government and major unions after May–June protests. The government negotiated a phased return of operations with Chiquita Brands, which had announced its exit in May 2025. The agreement restored some investor confidence and signaled the government’s commitment to protecting foreign investment.
Fiscally, Panama retains Investment Grade ratings from Moody’s and S&P, with country risk declining during the quarter (reflected in sovereign debt valuations and CDS levels). The government is expected to comply with the fiscal rule this year, crucial for maintaining its rating.
Guatemala
Guatemala maintains a dynamic political environment focused on institutional stability and governance. The administration promotes transparency, public investment, and judicial strengthening amid democratic transition and political restructuring.
Internally, challenges persist due to social demands and public perceptions of security, infrastructure, and services. Teacher protests and limited public project execution highlight the need for dialogue and interinstitutional coordination. Despite these issues, macroeconomic stability and prudent fiscal management support internal and external confidence.
The country is developing a national integrity and anti-corruption strategy to reinforce compliance culture and institutional controls. Discussions continue on judicial independence and protection of justice operators, key to democratic strength and legal certainty.
Internationally, Guatemala has increased participation in multilateral and regional cooperation forums, promoting alliances on migration, border security, environment, and sustainable development. These efforts support a stable profile with strategic partners and financial institutions.
Overall, Guatemala shows signs of political consolidation, with openness to dialogue, technical cooperation, and democratic institutionalism. These factors suggest a trend toward moderate political stability, supported by macroeconomic balance, international coordination, and commitment to governance and rule of law.
El Salvador
Constitutional reforms approved in Q3 2025 include: withdrawal from the Central American Parliament, authorization of presidential reelection, and elimination of runoff elections, president and vice president will be elected by simple majority. The presidential term was extended from five to six years, with reelection not extending the previous mandate. The electoral calendar was unified: in 2027, elections will be held for president, vice president, legislative deputies, and municipal councils.
To ensure national security, a new extension of the regime of suspension of constitutional guarantees has been approved for a period of 30 days. This measure maintains the suspension of the constitutional guarantees established in Articles 12 paragraph 2, 13 paragraph 2, and 24 of the Constitution of the Republic. With this extension, the regime of exception accumulates a total of 43 consecutive extensions since its implementation.
Following a USD 1.4 billion agreement with the IMF under the Extended Fund Facility, progress continues on fiscal targets. Pending reforms include: Civil Service Law for the public sector, pension system reform (awaiting actuarial study), fiscal transparency measures, termination of public participation in Chivo Wallet, liquidation of Fidebitcoin, and changes to bank liquidity regulations.
Investment incentives continue via decrees, notably: i) Special Regime for High-Value Investments (over USD 2 billion in strategic sectors like tech, energy, manufacturing), offering tax exemptions; ii) Special Regime for Technical and Administrative Capacity Development, allowing companies to hire international experts or local talent at a reduced 10% income tax rate (up to USD 100,000 annually); iii) Special Law for Diaspora Benefits and Protection, facilitating return of Salvadorans abroad with fiscal and social incentives; iv) Creation of the Special Activities Fund for Digital Transformation Services, aimed at expanding technological services to boost business competitiveness.
•Economic And Sectoral Environment
In the economic sphere, so far this year the continuation of the global macroeconomic stabilization process has been confirmed, supported by a gradual improvement in the growth pace of several developed and emerging economies. At the same time, upside risks to inflation remain relevant, in an environment of high indexation in service prices and increased trade barriers, which could exert inflationary pressures toward the end of 2025 and throughout 2026. Additionally, geopolitical conflicts and the deterioration of public finances in some regions have contributed to increased volatility in international financial markets.
Colombia
The global context, shaped by widespread tariff announcements and geopolitical tensions, has had direct implications for Colombia. The weakening of the U.S. dollar has supported the appreciation of the local exchange rate, while increased risk appetite and the recovery of capital flows to emerging markets have contributed to a broad-based decline in sovereign risk premiums. Nevertheless, Colombia continues to face heightened financial volatility, particularly in relation to public debt management operations and the challenging fiscal outlook projected for 2025 and 2026.
Domestically, the Colombian economy remains in a phase of macroeconomic stabilization. GDP grew by 2.4% year-over-year in the first half, reinforcing expectations of a 2.6% expansion for the full year. At the same time, inflation has stagnated around 5.0% through September, opening the possibility of reaching the monetary policy target range by 2027. In response to this trend, the Central Bank has kept its interest rate at 9.25% since April, amid a narrative that has prioritized caution in the monetary easing process.
However, significant challenges persist. The activation of the escape clause under the Fiscal Rule has allowed the government to project a fiscal deficit of 7.1% of GDP and a gross debt level that, according to our estimates, could exceed 63% of GDP. Additionally, the international environment remains complex, characterized by new tariff measures and escalating geopolitical tensions in the Middle East—factors that are likely to continue generating uncertainty due to their potential impact on inflation and the path of domestic monetary policy.
In terms of foreign trade, the imposition of a universal 10% tariff by the United States on Colombian goods has not substantially altered the country’s competitive position relative to other economies. In fact, Colombia has improved its standing compared to China, which faces significantly higher tariffs. Nonetheless, competitiveness has been adversely affected in relation to goods covered under the trade agreement between Mexico, Canada, and the United States.
Against this backdrop, Colombia is expected to continue progressing toward a gradual stabilization of its key macroeconomic indicators, including GDP growth, inflation, and interest rates. While the 10% tariff may pose moderate risks to specific productive sectors, financial volatility remains the primary source of short-term macroeconomic uncertainty.
Panama
Panama's economy has grown at a real rate of 4.4% so far this year, surpassing analysts' consensus, which expected a 3.6% growth. This growth has been driven by productive activity in the logistics sector, led by the performance of the Panama Canal, the Colón Free Trade Zone, and Tocumen Airport (regarding the specific performance of the Panama Canal, it is important to mention that part of the dynamic growth was explained by a statistical effect due to a low base of comparison). Meanwhile, the trade, financial, and real estate sectors have also been key in consolidating economic growth so far this year, along with the performance of the tourism sector. This observed behavior has led analysts to revise upward their full-year economic growth projections. According to the IMF and the World Bank—both of which have revised their forecasts upward—Panama is expected to lead regional economic growth with an expansion of around 4%, well above the regional average of 2.4%.
In the third quarter, in particular, we expect a moderation in economic growth, explained by the normalization of growth in the Panama Canal, due to a reduced boost from the previously mentioned low base effect, and the potential negative effects on trade through the Canal stemming from tariff policies led by the United States.
Guatemala
The country has shown one of the best performances in the Central American region in recent years, driven by the strong dynamism of private consumption. At the sectoral level, there has been significant growth in financial activities and textile exports, as well as in tourism and commerce. At the same time, inflation has consistently remained below the Bank of Guatemala’s target, reaching 1.47% year-on-year in September. This has been the result of low international oil prices and the dissipation of supply shocks. Looking ahead, we expect the economy to maintain a favorable trajectory, as increased investment in infrastructure and tourism projects would offset a potential decline in remittances due to tighter United States. immigration policy. In line with this outlook, President Arévalo’s government has shown a greater willingness to increase spending on infrastructure and social programs, so we estimate that public administration will provide an additional boost to growth. However, it is important to note that Guatemala has historically been characterized by its fiscal soundness, and although there are plans to expand spending, we do not anticipate a significant deterioration in public finances in the coming years. Finally, the Bank of Guatemala has indicated that its monetary policy decisions will remain aligned with those of the United States Federal Reserve, so we foresee only two interest rate cuts in 2025, which would bring the rate down to 4.00%.
El Salvador
The country's recent outlook has been marked by a slight economic acceleration, despite disruptions in international trade and the weakening of the textile sector. In fact, international demand for this sector has been affected in an environment of growing competition from Asian countries in maquila activities. Meanwhile, inflation has shown a downward bias due to the evolution of fuel prices. Looking ahead, economic performance will be conditioned by several factors: a loss of momentum in external demand as a result of the stabilization of
global growth and the tariff situation; a reduction in remittance flows to the country, due to the tightening of U.S. immigration policy and the imposition of a tax on outbound transfers, which would translate into lower household consumption; and a more limited space for public spending, as the Government advances in meeting the fiscal consolidation objectives agreed upon with the International Monetary Fund. In this regard, it is considered that the fiscal front—which had become the main challenge in the macroeconomic outlook—could show improvement in the short term, while institutional capacity to respond to external shocks is strengthened. Finally, in terms of prices, inflation is expected to rebound in the short term as a result of disruptions in global trade; however, this effect would be temporary and would give way to inflation rates close to 1.3% in the medium term.
•Third-party Risks
The outsourcing of activities within the Grupo Cibest Consolidated involves operational and strategic risks, especially if suppliers do not adequately comply with the contracted services. This situation can affect the achievement of objectives, disrupt operations, and increase exposure to cybersecurity risks, handling confidential information, fraud, and reputation, especially in the face of public or regulatory scrutiny.
During the third quarter of 2025, progress was made in the evaluation plan for critical suppliers, with the aim of strengthening the control environment and improving contracting processes, ensuring effective management of third parties.
•Business Continuity And Technology Failures
In terms of operational resilience, business continuity, and technology failures, new operational contingencies continue to be developed to enable greater responsiveness to eventualities, such as the implementation of a fourth-generation Core, strengthening continuity strategies for digital channels, and further boosting cyber resilience with the activation of backup immutability in critical applications and digital vaults.
•Model Risk
During the third quarter of 2025, progress was made from the design phase to the controlled operation of the model risk management framework. As part of this advancement, the Comprehensive Validation Framework for Generative AI models was implemented, which includes mandatory guidelines and technical tests for new use cases. Additionally, a new tiering methodology was integrated into the processes, complemented by the launch of a tool for its application and registration in the Model Risk Management (MRM) repository.
In regulatory matters, the general guidelines for model risk management were updated, an annex with special guidelines for Generative AI models was created, and specific validation guides with mandatory technical tests were developed.
The automation of the validation process was significantly expanded by incorporating additional quantitative modules focused on provisioning and liquidity risk models, achieving a 30% reduction in average review times compared to the usual standard and strengthening full traceability of the process. Furthermore, an early warning engine was implemented to anticipate the expiration of findings and action plans resulting from independent model validation, generating proactive alerts aimed at reducing the average closure time.
•Cybersecurity And Information Security Risk
As Grupo Cibest Consolidated its business model leveraged on emerging technologies, it is increasingly facing more relevant challenges and risks in terms of cybersecurity and information security. This exposure can generate impacts on the operation of the business, reputational damage or even fraudulent events.
So far in the third quarter of 2025, the focus is on building, disclosing, and approving cyber risk appetite, defined by the number of vulnerabilities Grupo Cibest Consolidated is willing to accept in its technological environment to achieve business objectives efficiently and securely.
•Internal Fraud Risk
At Grupo Cibest Consolidated, we uphold a firm stance of zero tolerance toward fraud, in any of its forms. To support this commitment, we have an anti-fraud program currently in operation, with formally approved policies, based on the COSO internal control framework. This program aims to strengthen the internal control environment through mechanisms that enable the prevention, detection, and coordinated response to internal fraud risks, fostering collaboration among the various areas involved.
Additionally, it serves as a comprehensive risk management framework within Grupo Cibest Consolidated, addressing issues related to fraud in financial reporting, misappropriation of assets, and corruption, ensuring an effective response aligned with international best practices.
•Risk Of AML/CFT
Regarding AML/CFT and corruption risks, during the quarter efforts were focused on stabilizing processes, controls, and activities related to prevention, awareness, detection, and response at Grupo Cibest S.A. These actions have strengthened the control environment and advanced the proper identification, assessment, and effective management of risks, thereby contributing to the achievement of the organizational purpose.
Throughout the quarter, notable efforts were made to align compliance actions with the corporate vision and strategy, reinforcing a control environment that supports sustainability and decision-making as a group. This approach has enabled progress in technical specialization, process optimization, aspirational profiling, and alignment of our actions with organizational objectives. Positive evaluations by oversight bodies reflect strong performance and validate the maturity of compliance systems as a key enabler for risk management and value creation.
Within this context, it is recognized that current challenges demand a permanent commitment from all compliance teams to challenge established models, drive continuous evolution, and ensure strategic contribution to the business.
•Risk Of External Fraud
During the third quarter of the year, fraud risk management remained a strategic priority for Grupo Cibest Consolidated. Actions continue to strengthen prevention models, such as ongoing adjustments to behavioral and transactional monitoring to adapt to actual fraud, the decline of a larger number of high-risk transactions, the customization of overall limits for the personal channel to adapt to customer transactional patterns, and the continuation of security campaigns to mitigate fraud using social engineering techniques. Additionally, new capabilities have been acquired that allow us to understand customer behavioral and transactional behavior, as well as their usage and preferences, in order to make more informed decisions.
•Talent Risk
During the third quarter of 2025, the talent risk measurement methodology was implemented, the first measurement results were obtained and were presented to the Risk Committee. Consequently, this risk is incorporated into this quarterly report. The categories identified include: unsafe work environments, deterioration of mental health, talent shortages, and deficiencies in future talent management. For each of these, risks that may have an impact on our entities were identified, such as deterioration of mental health, loss of competitiveness of the employee value proposition compared to the market, adverse work environment, inability to develop talent with future knowledge, and shortage of required talent.
To mitigate these risks, the Talent and Culture team implemented actions to ensure an adequate control environment.
IV.MATERIAL CHANGES IN THE INFORMATION REPORTED IN THE CORPORATE GOVERNANCE ANALYSIS CHAPTER DURING THE QUARTER
In the third quarter of the year 2025, there were no material changes to the information reported in the Corporate Governance analysis chapter of the last quarterly report.
V.MATERIAL CHANGES THAT HAVE OCCURRED IN PRACTICES, PROCESSES, POLICIES AND INDICATORS IN RELATION TO SOCIAL AND ENVIRONMENTAL CRITERIA, INCLUDING CLIMATE CRITERIA.
In the second quarter of 2025, there were no material changes in practices, processes, policies, or indicators related to social and environmental criteria.
VI.MATERIAL CHANGES PRESENTED IN THE FINANCIAL STATEMENTS OF THE ISSUER BETWEEN THE REPORTED QUARTER AND THE DATE OF TRANSMISSION OF THE INFORMATION
On October 21, 2025, the corporate reorganization of the Panamanian subsidiary Banistmo S.A. and other affiliates of Grupo Cibest in Panama took place. The reorganization included the partial spin-off by Valores Banistmo S.A. and Banistmo Capital Markets Group Inc. of certain resource portfolios in favor of the beneficiary company VB Panamá S.A.; the subsequent merger of VB Beneficiary Company with Banistmo S.A., with the latter being the absorbing entity; and the partial spin-off by Banistmo of 100% of the shares it held in Valores Banistmo in favor of Cibest Panamá Assets S.A., a Panamanian company wholly owned by Grupo Cibest..
VII.GLOSSARY OF TERMS
ADR: American Depositary Shares, or the bank's securities that are listed on the New York Stock Exchange. An ADR represents four preferred shares.
ASG: Environmental, social, and corporate governance, by its initials in Spanish.
Bam: Banco Agromercantil de Guatemala SA.
Bancolombia or the Bank: Bancolombia S.A.
Bancolombia Consolidated: refers to Bancolombia S.A., a banking institution organized under the laws of the Republic of Colombia, including its subsidiaries on a consolidated basis.
CDT: Certificate of Deposit at Term.
COLCAP: reference index of the stock market of the Colombian Stock Exchange.
COP: Colombian pesos.
DIAN: Dirección de Impuestos y Aduanas Nacional, tax authority in Colombia.
DJSI: Dow Jones Sustainability Index.
DTF: It is the average interest rate paid by financial institutions for 90-day deposits.
IFC: International Finance Corporation.
Grupo Bancolombia: Refers to the business group made up of Bancolombia S.A. and its subsidiaries on a consolidated basis, which is now referred to as the Grupo Cibest Consolidated.
Grupo Cibest: Refers to Grupo Cibest S.A.
Grupo Cibest Consolidated: Refers to Grupo Cibest S.A., a holding company organized under the laws of the Republic of Colombia, including its subsidiaries on a consolidated basis, unless otherwise stated or the context requires a different interpretation.
LAFT: Money Laundering and Terrorist Financing, by its initials in Spanish.
Nequi: financial platform that accompanies users in their daily lives with financial and non-financial services from third parties. As a 100% digital solution, it complements its offer with functionalities that go beyond saving and managing money.
NYSE: New York Stock Exchange.
SARLAFT: Money Laundering and Terrorist Financing Risk Management System, by its initials in Spanish.
Senior Management: President and the Vice Presidents who report directly to the President of Grupo Cibest.
SFC: Financial Superintendency of Colombia.
SMMLV: Legal Minimum Monthly Wage in force.
TRM: Representative Market Rate, price of the dollar in the Colombian market, which varies daily.
USD: United States dollars.
UVR: Real Value Units, an indicator tied to the behavior of inflation that is used to calculate the cost of certain housing loans.
UVT: Measure that is used to determine different tax obligations with an equivalent in Colombian pesos.
VIII. ANNEXES
i.CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTSGRUPOCIBEST
ii.CONDENSED SEPARATED INTERIM FINANCIAL STATEMENTS GRUPO CIBESTcondensedseparatedinterimf.htmS.A.
| Contacts | |||
|---|---|---|---|
| Mauricio Botero Wolff | Catalina Tobon Rivera | ||
| Strategy and Financial Vp | IR Director | ||
| Tel.: (57 604) 4040858 | Tel: (57 601) 4485950 | ||
| IR@grupocibest.com.co | 31 | ||
| --- |
Document
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the nine-months period ended September 30, 2025 and 2024 and the three-months period from July 01, to September 30, 2025 and 2024
F-1
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
GRUPO CIBEST S.A. AND ITS SUBSIDIARIES
As of September 30, 2025 and December 31, 2024
(Stated in millions of Colombian pesos)
| Note | September 30, 2025 | December 31, 2024 | |
|---|---|---|---|
| ASSETS | |||
| Cash and cash equivalents | 4 | 30,496,202 | 32,844,099 |
| Financial assets investments | 5.1 | 39,704,715 | 37,570,270 |
| Derivative financial instruments | 5.2 | 4,042,125 | 2,938,142 |
| Financial assets investments and derivative financial instruments | 43,746,840 | 40,508,412 | |
| Loans and advances to customers | 279,972,623 | 279,453,908 | |
| Allowance for loans, advances and lease losses | (14,370,189) | (16,179,738) | |
| Loans and advances to customers, net | 6 | 265,602,434 | 263,274,170 |
| Assets held for sale and inventories, net | 7 | 832,367 | 1,106,399 |
| Investment in associates and joint ventures | 3,064,302 | 2,928,984 | |
| Investment properties | 6,027,496 | 5,580,109 | |
| Premises and equipment, net | 5,601,012 | 5,906,064 | |
| Right-of-use assets, lease | 1,488,727 | 1,757,206 | |
| Goodwill and intangible assets, net | 8,772,703 | 9,767,903 | |
| Deferred tax, net | 8.5 | 606,607 | 763,757 |
| Other assets, net | 8,392,968 | 7,778,279 | |
| TOTAL ASSETS | 374,631,658 | 372,215,382 | |
| LIABILITIES AND EQUITY | |||
| LIABILITIES | |||
| Deposits by customers | 9 | 281,259,655 | 279,059,401 |
| Interbank deposits and repurchase agreements and other similar secured borrowing | 10 | 4,056,981 | 1,776,965 |
| Derivative financial instruments | 5.2 | 4,760,502 | 2,679,643 |
| Borrowings from other financial institutions | 11 | 11,653,378 | 15,689,532 |
| Debt instruments in issue | 11,441,859 | 11,275,216 | |
| Lease liabilities | 1,596,793 | 1,889,364 | |
| Preferred shares | 568,928 | 584,204 | |
| Current tax | 2,074,043 | 156,162 | |
| Deferred tax, net | 8.5 | 2,758,701 | 2,578,504 |
| Employee benefit plans | 931,137 | 951,555 | |
| Other liabilities | 13 | 9,939,670 | 10,990,561 |
| TOTAL LIABILITIES | 331,041,647 | 327,631,107 | |
| EQUITY | |||
| Share capital | 14 | 480,914 | 480,914 |
| Additional paid-in-capital | 4,857,491 | 4,857,454 | |
| Appropriated reserves | 15 | 23,499,086 | 22,575,837 |
| Retained earnings | 3,374,778 | 2,715,313 | |
| Net income attributable to equity holders of the Parent Company | 5,673,070 | 6,267,744 | |
| Accumulated other comprehensive income, net of tax | 4,492,518 | 6,645,206 | |
| SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO THE OWNERS OF THE PARENT COMPANY | 42,377,857 | 43,542,468 | |
| Non-controlling interest | 1,212,154 | 1,041,807 | |
| TOTAL EQUITY | 43,590,011 | 44,584,275 | |
| TOTAL LIABILITIES AND EQUITY | 374,631,658 | 372,215,382 |
The accompanying notes form an integral part of these Condensed Consolidated Interim Financial Statements.
F-2
CONDENSED CONSOLIDATED INTERIM STATEMENT OF INCOME
GRUPO CIBEST S.A. AND ITS SUBSIDIARIES
For the nine-months period ended September 30, 2025 and 2024 and the three-months period from July 01 to September 30, 2025 and 2024
(Stated in millions of Colombian pesos, except EPS stated in units of pesos)
| Accumulated | Quarterly | ||||
|---|---|---|---|---|---|
| Note | 2025 | 2024 | 2025 | 2024 | |
| Interest on loans and financial leases | |||||
| Commercial | 11,669,717 | 12,529,974 | 3,928,393 | 4,171,772 | |
| Consumer | 6,002,355 | 6,404,890 | 2,019,276 | 2,064,678 | |
| Mortgage | 3,176,554 | 2,920,392 | 975,125 | 887,935 | |
| Financial leases | 2,423,396 | 2,741,999 | 812,528 | 869,870 | |
| Small business loans | 211,134 | 154,170 | 78,711 | 49,187 | |
| Total interest income on loans and financial leases | 23,483,156 | 24,751,425 | 7,814,033 | 8,043,442 | |
| Interest on debt instruments using the effective interest method | 16.1 | 711,940 | 734,322 | 240,099 | 236,410 |
| Total Interest on financial instruments using the effective interest method | 24,195,096 | 25,485,747 | 8,054,132 | 8,279,852 | |
| Interest income on overnight and market funds | 140,157 | 173,880 | 46,704 | 47,462 | |
| Interest and valuation on financial instruments | 16.1 | 1,314,781 | 1,236,360 | 515,806 | 527,804 |
| Total interest and valuation on financial instruments | 25,650,034 | 26,895,987 | 8,616,642 | 8,855,118 | |
| Interest expenses | 16.2 | (10,056,381) | (11,398,483) | (3,313,913) | (3,702,518) |
| Net interest margin and valuation on financial instruments before impairment on loans and financial leases, off balance sheet credit instruments and other financial instruments | 15,593,653 | 15,497,504 | 5,302,729 | 5,152,600 | |
| Credit impairment charges on loans, advances and financial leases, net | 6 | (3,049,740) | (4,485,195) | (888,121) | (1,527,271) |
| Credit recovery (impairment) for other financial instruments | 24,935 | (37,404) | 59,200 | (61,565) | |
| Total credit impairment charges, net | (3,024,805) | (4,522,599) | (828,921) | (1,588,836) | |
| Net interest margin and valuation on financial instruments after impairment on loans and financial leases and off balance sheet credit instruments and other financial instruments | 12,568,848 | 10,974,905 | 4,473,808 | 3,563,764 | |
| Fees and commissions income | 16.3 | 6,068,388 | 5,602,717 | 2,107,203 | 1,902,779 |
| Fees and commissions expenses | 16.3 | (2,821,806) | (2,509,509) | (970,269) | (864,435) |
| Total fees and commissions, net | 3,246,582 | 3,093,208 | 1,136,934 | 1,038,344 | |
| Other operating income | 16.4 | 2,533,590 | 2,132,726 | 866,299 | 762,313 |
| Dividends and net income on equity investments | 16.5 | 381,695 | (48,767) | 123,019 | 92,001 |
| Total operating income, net | 18,730,715 | 16,152,072 | 6,600,060 | 5,456,422 | |
| Operating expenses | |||||
| Salaries and employee benefits | 17.1 | (4,654,843) | (4,094,895) | (1,549,165) | (1,411,548) |
| Other administrative and general expenses | 17.2 | (4,205,214) | (3,813,107) | (1,409,124) | (1,320,342) |
| Taxes other than income tax | 17.2 | (1,122,576) | (1,125,119) | (376,173) | (344,293) |
| Impairment, depreciation and amortization | 17.3 | (801,323) | (804,306) | (266,522) | (270,562) |
| Total operating expenses | (10,783,956) | (9,837,427) | (3,600,984) | (3,346,745) | |
| Profit before income tax | 7,946,759 | 6,314,645 | 2,999,076 | 2,109,677 | |
| Income tax | 8.3 | (2,196,712) | (1,648,395) | (842,750) | (590,192) |
| Net income | 5,750,047 | 4,666,250 | 2,156,326 | 1,519,485 | |
| Net income attributable to equity holders of the Parent Company | 5,673,070 | 4,604,440 | 2,144,103 | 1,501,194 | |
| Non-controlling interest | 76,977 | 61,810 | 12,223 | 18,291 | |
| Basic and diluted earnings per share to common shareholders, stated in units of pesos | 18 | 5,951 | 4,832 | 2,247 | 1,576 |
The accompanying notes form an integral part of these Condensed Consolidated Interim Financial Statements..
F-3
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
GRUPO CIBEST S.A. AND ITS SUBSIDIARIES
For the nine months period ended September 30, 2025 and 2024 and the three-months period from July 1 to September 30, 2025 and 2024
(Stated in millions of Colombian pesos)
| Accumulated | Quarterly | ||||
|---|---|---|---|---|---|
| Note | 2025 | 2024 | 2025 | 2024 | |
| Net income | 5,750,047 | 4,666,250 | 2,156,326 | 1,519,485 | |
| Other comprehensive income/(loss) that will not be reclassified to net income | |||||
| Remeasurement income related to defined benefit liability | 15,346 | 15,028 | 361 | - | |
| Income tax | 8.4 | (5,314) | (5,293) | 151 | 93 |
| Net of tax amount | 10,032 | 9,735 | 512 | 93 | |
| Investments in equity instruments measured at fair value through other comprehensive income (FVTOCI) | |||||
| Unrealized gain/(loss) | 7,773 | 3,663 | (6,056) | (9,439) | |
| Income tax | 8.4 | 1,805 | 3,631 | 532 | (1,763) |
| Net of tax amount | 9,578 | 7,294 | (5,524) | (11,202) | |
| Total other comprehensive income that will not be reclassified to net income, net of tax | 19,610 | 17,029 | (5,012) | (11,109) | |
| Other comprehensive income/(loss) that may be reclassified to net income | |||||
| Investments in debt instruments measured at fair value through other comprehensive income (FVTOCI) | |||||
| Loss on investments recycled to profit or loss upon disposal | - | (7,314) | - | (81) | |
| Unrealized gain | 47,293 | 60,512 | 49,490 | 70,549 | |
| Recovery/(allowance) of investments | 1,047 | 256 | (1,486) | (2,041) | |
| Income tax | 8.4 | 1,927 | (4,881) | (3,996) | (15,724) |
| Net of tax amount | 50,267 | 48,573 | 44,008 | 52,703 | |
| Foreign currency translation adjustments: | |||||
| Exchange differences arising on translating the foreign operations | (2,388,458) | 1,829,072 | (777,876) | 160,003 | |
| Gain/(Loss) on net investment hedge in foreign operations | 293,165 | (485,195) | 62,539 | (33,195) | |
| Income tax | 8.4 | (112,321) | 190,709 | 13,327 | 12,555 |
| Net of tax amount | (2,207,614) | 1,534,586 | (702,010) | 139,363 | |
| Cash flow hedges | |||||
| Net loss from cash flow hedges | (361) | - | - | - | |
| Reclassification to the Statement of Income | 145 | - | - | - | |
| Income tax | 8.4 | 87 | - | - | - |
| Net of tax amount | (129) | - | - | - | |
| Unrealized loss on investments in associates and joint ventures using equity method | (668) | (9,432) | (222) | (3,185) | |
| Income tax | 8.4 | (479) | 1,456 | 120 | 566 |
| Net of tax amount | (1,147) | (7,976) | (102) | (2,619) | |
| Total other comprehensive income that may be reclassified to net income, net of tax | (2,158,623) | 1,575,183 | (658,104) | 189,447 | |
| Other comprehensive income, attributable to the owners of the Parent Company, net of tax | (2,139,013) | 1,592,212 | (663,116) | 178,338 | |
| Other comprehensive income, attributable to the Non-controlling interest | (594) | 2,067 | (872) | 145 | |
| Total comprehensive income attributable to: | 3,610,440 | 6,260,529 | 1,492,338 | 1,697,968 | |
| Equity holders of the Parent Company | 3,534,057 | 6,196,652 | 1,480,987 | 1,679,532 | |
| Non-controlling interest | 76,383 | 63,877 | 11,351 | 18,436 |
The accompanying notes form an integral part of these Condensed Consolidated Interim Financial Statements.
F-4
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
GRUPO CIBEST S.A. AND ITS SUBSIDIARIES
For the nine-months period ended September 30, 2025 and 2024
(Stated in millions of Colombian pesos, except per share amounts stated in units of pesos)
| Attributable to owners of Parent Company | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Accumulated other comprehensive income | ||||||||||||||||
| Share<br><br>Capital | Additional<br><br>Paid in<br><br>capital | Appropiated<br><br>Reserves<br><br>(Note 15) (1) | Share buyback reserve(2) | Translation<br><br>adjustment | Cash flow hedging | Equity<br><br>Securities<br><br>through OCI | Debt<br><br>instruments<br><br>at fair value<br><br>through OCI | Revaluation<br><br>of assets | Associates | Employee<br><br>Benefits | Retained<br><br>earnings | Net<br><br>Income | Attributable<br><br>to owners<br><br>of Parent<br><br>Company | Non-<br><br>Controlling<br><br>interest | Total<br><br>equity | |
| Balance as of January 1, 2025 | 480,914 | 4,857,454 | 22,575,837 | - | 6,517,456 | 129 | 203,557 | (44,070) | 2,137 | 5,178 | (39,181) | 2,715,313 | 6,267,744 | 43,542,468 | 1,041,807 | 44,584,275 |
| Transfer to profit from previous years | - | - | - | - | - | - | - | - | - | - | - | 6,267,744 | (6,267,744) | - | - | - |
| Dividend payment corresponding to 509,704,584 common shares and 452,122,416 preferred shares without voting rights, subscribed and paid as of December 31, 2024, at a rate of COP 3,900 per share, as approved by the shareholders' meeting on March 14, 2025. Additionally, on April 23, 2025, the shareholders' meeting approved an extraordinary dividend at a rate of COP 624 per share. | - | - | (600,180) | - | - | - | - | - | - | - | - | (3,693,424) | - | (4,293,604) | - | (4,293,604) |
| Constitution of reserves | - | - | 534,059 | 1,350,000 | - | - | - | - | - | - | - | (1,916,099) | - | (32,040) | - | (32,040) |
| Share buyback | - | - | - | (360,630) | - | - | - | - | - | - | - | - | - | (360,630) | - | (360,630) |
| Realization of retained earnings(3) | - | - | - | - | - | - | (13,675) | - | - | - | - | 13,675 | - | - | - | - |
| Others(4) | - | 37 | - | - | - | - | - | - | - | - | - | (12,431) | - | (12,394) | - | (12,394) |
| Non-controlling interest | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 93,964 | 93,964 |
| Net Income | - | - | - | - | - | - | - | - | - | - | - | - | 5,673,070 | 5,673,070 | 76,977 | 5,750,047 |
| Other comprehensive income | - | - | - | - | (2,207,614) | (129) | 9,578 | 50,267 | - | (1,147) | 10,032 | - | - | (2,139,013) | (594) | (2,139,607) |
| Balance as of September 30, 2025 | 480,914 | 4,857,491 | 22,509,716 | 989,370 | 4,309,842 | - | 199,460 | 6,197 | 2,137 | 4,031 | (29,149) | 3,374,778 | 5,673,070 | 42,377,857 | 1,212,154 | 43,590,011 |
(1) The transaction for COP (600,180) corresponds to the payment of extraordinary dividend approved by the shareholders' meeting held on April 23, 2025.
(2) At the extraordinary shareholders’ meeting of Cibest, held on June 9, 2025, a share buyback program was approved for common shares, preferred dividend shares without voting rights and ADRs of Grupo Cibest S.A., up to an amount of one trillion three hundred fifty billion Colombian pesos COP 1,35 trillion. As of July 2025, the Grupo Cibest S.A. has bought back 7,252,194 shares worth COP 360,630. For further information, see Note 1. Reporting entity.
(3) Realization of retained earnings from equity securities through OCI, corresponds to the sale of the investment in Bladex for COP 10,025 and partial payments of asset-backed securities investments for COP 3,650.
(4)The transaction for COP 37 in additional paid in capital corresponds to Grupo Cibest, recorded upon its capitalization.
The accompanying notes form an integral part of these Condensed Consolidated Interim Financial Statements..
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CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
GRUPO CIBEST S.A. AND ITS SUBSIDIARIES
For the nine-months period ended September 30, 2025 and 2024
(Stated in millions of Colombian pesos, except per share amounts stated in units of pesos)
| Attributable to owners of Parent Company | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Accumulated other comprehensive income | ||||||||||||||
| Share<br><br>Capital | Additional<br><br>Paid in<br><br>capital | Appropiated<br><br>Reserves | Translation<br><br>adjustment | Equity<br><br>Securities<br><br>through OCI | Debt<br><br>instruments<br><br>at fair value<br><br>through OCI | Revaluation<br><br>of assets | Associates | Employee<br><br>Benefits | Retained<br><br>earnings | Net<br><br>Income | Attributable<br><br>to owners<br><br>of Parent<br><br>Company | Non-<br><br>Controlling<br><br>interest | Total<br><br>equity | |
| Balance as of January 1, 2024 | 480,914 | 4,857,454 | 20,044,769 | 3,974,379 | 193,906 | (67,306) | 2,137 | 11,520 | (40,475) | 2,515,278 | 6,116,936 | 38,089,512 | 960,217 | 39,049,729 |
| Transfer to profit from previous years | – | – | – | – | – | – | – | – | – | 6,116,936 | (6,116,936) | – | – | – |
| Dividend payment corresponding to 509,704,584 common shares and 452,122,416 preferred shares without voting rights, subscribed and paid as of December 31, 2023, at a rate of COP 3,536 per share. | – | – | – | – | – | – | – | – | – | (3,343,319) | – | (3,343,319) | – | (3,343,319) |
| Other reserves | – | – | 2,589,358 | – | – | – | – | – | – | (2,621,977) | – | (32,619) | – | (32,619) |
| Realization of retained earnings(1)(2) | – | – | – | – | (18,520) | – | – | – | – | 18,520 | – | – | – | – |
| Others | – | – | – | – | – | – | – | – | – | (10,790) | – | (10,790) | – | (10,790) |
| Non-controlling interest | – | – | – | – | – | – | – | – | – | – | – | – | (9,024) | (9,024) |
| Net Income | – | – | – | – | – | – | – | – | – | – | 4,604,440 | 4,604,440 | 61,810 | 4,666,250 |
| Other comprehensive income | – | – | – | 1,534,586 | 7,294 | 48,573 | – | (7,976) | 9,735 | – | – | 1,592,212 | 2,067 | 1,594,279 |
| Balance as of September 30, 2024 | 480,914 | 4,857,454 | 22,634,127 | 5,508,965 | 182,680 | (18,733) | 2,137 | 3,544 | (30,740) | 2,674,648 | 4,604,440 | 40,899,436 | 1,015,070 | 41,914,506 |
(1)Mainly corresponds to partial payments of asset-backed securities investments.
The accompanying notes form an integral part of these Condensed Consolidated Interim Financial Statements..
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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
GRUPO CIBEST S.A. AND ITS SUBSIDIARIES
For the nine-months period ended September 30, 2025 and 2024
(Stated in millions of Colombian pesos)
| Note | 2025 | 2024 | |
|---|---|---|---|
| Net income | 5,750,047 | 4,666,250 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | |||
| Depreciation and amortization | 17.3 | 758,333 | 749,810 |
| Other assets impairment | 17.3 | 42,990 | 54,496 |
| Impairment of investments in associates and joint ventures | 16.5 | - | 313,284 |
| Equity method | 16.5 | (255,284) | (187,910) |
| Credit impairment charges on loans and advances and financial leases | 6 | 3,049,740 | 4,485,195 |
| (Recovery) / Credit impairment charges on off balance sheet credit and other financial instruments | (24,935) | 37,404 | |
| Gain on sales of assets | 16.4 | (155,700) | (61,640) |
| Valuation gain on investment securities | 16.1 - 16.5 | (2,279,745) | (1,874,339) |
| Gain upon disposal of investment in subsidiary, associates and joint ventures | 16.5 | (11,508) | - |
| Loss / ( gain) from valuation on derivative financial instruments | 405,182 | (64,246) | |
| Income tax | 8 | 2,196,712 | 1,648,395 |
| Bonuses and short-term benefits | 757,915 | 538,841 | |
| Dividends | 16.5 | (69,171) | (68,795) |
| Investment property valuation | 16.4 | (91,041) | (40,266) |
| Effect of exchange rate changes | (699,631) | (445,324) | |
| Other non-cash items | (36,010) | (14,440) | |
| Net interest | (13,426,775) | (13,352,942) | |
| Change in operating assets and liabilities: | |||
| Decrease / (increase) in derivative financial instruments | 573,256 | (322,347) | |
| Increase in accounts receivable | (251,271) | (1,287,153) | |
| Increase in loans and advances to customers | (16,687,037) | (13,911,996) | |
| (Increase) / decrease in other assets | (595,800) | 195,854 | |
| Increase / (decrease) in accounts payable | 552,357 | (327,808) | |
| Decrease in other liabilities | (45,582) | (1,182,916) | |
| Increase in deposits by customers | 13,744,266 | 4,176,322 | |
| Increase / (decrease) in estimated liabilities and provisions | 2,570 | (13,481) | |
| Net changes in investment securities recognized at fair value through profit or loss | (1,440,329) | (8,389,882) | |
| Proceeds from sales of assets held for sale and inventories | 1,048,095 | 1,030,971 | |
| Recovery of charged-off loans | 6 | 647,383 | 599,321 |
| Income tax paid | (1,891,849) | (1,429,066) | |
| Dividend received | 144,144 | 120,405 | |
| Interest received | 23,674,190 | 24,922,358 | |
| Interest paid | (10,043,072) | (11,266,924) | |
| Net cash provided / (used) by operating activities | 5,342,440 | (10,702,569) | |
| Cash flows from investment activities: | |||
| Purchases of debt instruments at amortized cost | (1,442,626) | (1,122,403) | |
| Proceeds from maturities of debt instruments at amortized cost | 791,490 | 1,149,749 | |
| Purchases of debt instruments at fair value through OCI | (351,887) | (410,631) | |
| Proceeds from debt instruments at fair value through OCI | 791,605 | 1,965,901 | |
| Purchases of equity instruments at fair value through OCI and interests in associates and joint ventures | (14,480) | (125,015) | |
| Proceeds from equity instruments at fair value through OCI and interests in associates and joint ventures | 69,641 | 32,061 | |
| Purchases of premises and equipment and investment properties | (1,259,595) | (1,110,400) | |
| Proceeds from sales of premises and equipment and investment properties | 370,945 | 279,684 | |
| Purchase of other long-term assets | (159,079) | (141,659) | |
| Net cash (used) provided in investing activities | (1,203,986) | 517,287 | |
| Cash flows from financing activities: | |||
| Increase in repurchase agreements and other similar secured borrowing | 2,185,576 | 2,346,677 |
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| Proceeds from borrowings from other financial institutions | 6,237,455 | 5,500,692 | |
|---|---|---|---|
| Repayment of borrowings from other financial institutions | (9,285,494) | (9,418,632) | |
| Payment of lease liability | (157,134) | (127,539) | |
| Placement of debt instruments in issue | 2,425,500 | 1,738,927 | |
| Payment of debt instruments in issue | (1,321,132) | (3,145,374) | |
| Dividends paid | (5,196,332) | (2,549,343) | |
| Buyback of shares | 14, 15 | (360,630) | - |
| Transactions with non-controlling interests | (5,739) | (9,024) | |
| Net cash (used) provided in financing activities(1) | (5,477,930) | (5,663,616) | |
| Effect of exchange rate changes on cash and cash equivalents | (1,008,421) | 2,424,794 | |
| Decrease in cash and cash equivalents | (1,339,476) | (15,848,898) | |
| Cash and cash equivalents at beginning of year | 4 | 32,844,099 | 39,799,609 |
| Cash and cash equivalents at end of year | 4 | 30,496,202 | 26,375,505 |
(1)For further information about the reconciliation of the balances of liabilities from financing activities, see Note 20 Liabilities from financing activities.
The Financial Statements of cash flows includes the following non-cash transactions, which were not reflected in the Condensed Consolidated Interim Consolidated Statement of Cash Flows:
•As of June 30, 2025 and 2024, restructured loans and returned assets that were transferred to assets held for sale, inventories, and other assets for COP 863,663 and COP 1,089,438, respectively.
•In 2025, the Group Cibest Consolidated received an investment property as a contribution in kind valued at COP 203,832
•In 2024, cancellation of active credit operations as a source of payment for the acquisition of P.A. Cedis Sodimac.
The accompanying notes form an integral part of these Condensed Consolidated Interim Financial Statements.
F-8
NOTE 1. REPORTING ENTITY
Grupo Cibest S.A. (Corporation), hereinafter “Grupo Cibest” or the “Holding”, is a listed issuer on the Colombian Stock Exchange (BVC) as well on the New York Stock Exchange (NYSE), since 2025. Grupo Cibest’s main location is in Medellín (Colombia), main address Carrera 48 # 26-85, Avenida Los Industriales, and was constituted under the name Grupo Cibest S.A., according to public deed number 10,594, dated September 25, 2024, from the Fifteenth Notary's Office of Medellin.
The duration contemplated in the bylaws is until December 8, 2144, but it may be dissolved or renewed before the end of that period.
The corporate purpose of the Holding is to invest in movable and immovable property, and especially, invest in shares, quotas or interest shares, or any other participation title in Colombian and/or foreign companies or entities, and the administration of said investments.
The Holding’s bylaws are formalized in the public deed number 386 dated May 12, 2025, from the Thirtieth Notary's Office of Medellin.
On May 12, 2025, according to public deed number 386 from the Thirtieth Notary's Office of Medellin, a partial spin-off agreement was formalized, whereby Bancolombia S.A. (“Bancolombia”), as the spinning-off entity, transferred part of its assets without dissolution to Grupo Cibest, as the beneficiary entity.
This transaction was first announced to the market on October 29, 2024, approved at the extraordinary shareholders’ meeting of Grupo Cibest, held on February 20, 2025, and at the extraordinary shareholders’ meeting of Bancolombia, held on April 23, 2025. It was authorized by the Financial Superintendence of Colombia through Resolutions number 0356 dated February 28, 2025, and number 0901 dated May 7, 2025.
On May 16, 2025, the market was informed of the completion of corporate transactions aimed at the evolution of the corporate structure of the group. Upon completion of these transactions, Grupo Cibest became the parent or holding company of all financial entities and other subsidiaries, including Bancolombia (collectively referred to as “Grupo Cibest Consolidated”).
As a result of these transactions, Bancolombia shareholders (excluding Grupo Cibest) became shareholders of the Holding, which issued in their name the same number and class of shares (common shares and preferred dividend shares without voting rights), maintaining the same terms, conditions, and ownership percentages. The shares previously held in Bancolombia (excluding those held by Grupo Cibest) were cancelled. Holders of Bancolombia American Depositary Receipts (“ADRs”) received equivalent ADRs of Grupo Cibest, and their Bancolombia ADRs were cancelled.
The common shares and preferred dividend shares without voting rights issued by Grupo Cibest are listed on the Colombian Stock Exchange (BVC) under the symbols “CIBEST” and “PFCIBEST,” respectively. The ADRs representing preferred dividend shares without voting rights are listed on the New York Stock Exchange (NYSE) under the symbol “CIB,” the same symbol under which Bancolombia’s ADRs were previously traded.
The common shares, preferred dividend shares without voting rights, and ADRs issued by Grupo Cibest became tradable as of Monday, May 19, 2025.
At the extraordinary shareholders’ meeting of Grupo Cibest, held on June 9, 2025, a share buyback program was approved for common shares, preferred dividend shares without voting rights, and ADRs of Grupo Cibest, up to an amount of one trillion three hundred fifty billion Colombian pesos (COP 1,350,000 million), for a term of up to one year from the approval of the Share Buyback Program Regulation by the Board of Directors. For this program, the
F-9
shareholders also approved a change in the allocation of a portion of the legal reserve and the creation of a reserve for share buyback.
On June 24, 2025, the Board of Directors of Grupo Cibest enacted the share repurchase program, the execution of which commenced on Thursday, July 17, 2025. In Colombia, the program is being carried out through the trading systems of the Colombian Stock Exchange via Valores Bancolombia S.A. Comisionista de Bolsa, and in the United States through an Enhanced Open Market Repurchase executed by Morgan Stanley & Co. LLC. For more information, see Note 15. Appropriated Reserves and Condensed Consolidated Interim Statement of Changes in Equity.
Grupo Cibest Consolidated has national and international presence in Colombia, the United States, Puerto Rico, Panama, Guatemala, and El Salvador, and operates in the following segments: Banking Colombia, Banking Panama, Banking El Salvador, Banking Guatemala, Trust, Investment Banking, Brokerage, International Banking, and Others. These activities are described in Note 3. Operating Segments.
Regarding the subsidiaries, on August 27, 2025, the Extraordinary Shareholders’ Meeting of Bancolombia approved the voluntary delisting of the Bank’s common shares and preferred dividend shares with non-voting rights from the National Registry of Securities and Issuers (RNVE) and the Colombian Stock Exchange (BVC). In line with this decision, the BVC formally notified the Bank of the delisting of the securities from its trading systems, effective as of September 19, 2025.
The assets and liabilities of operations in Barbados through Mercom Bank Ltd. were transferred to other entities, resulting in zero balances for both loan and deposit portfolios. The liquidation of this company has been approved by the public registry and is currently undergoing approval by the Central Bank of Barbados.
Operations in the Cayman Islands through Sinesa Cayman, Inc. (formerly Bancolombia Cayman) have been cancelled or transferred. On November 22, 2023, the Cayman Islands Monetary Authority approved the surrender of the banking license pursuant to Section 20(1)(a) of the Banks and Trust Companies Act (2021 Revision) (“BTCA”), thereby cancelling the license as of that date. No longer a banking entity, the company changed its corporate name to Sinesa Cayman, Inc. on June 20, 2024, and is currently undergoing dissolution and liquidation before the Cayman Islands Companies Registry.
The General Shareholders’ Meeting of Transportempo S.A.S. approved the liquidation of the company, including the corresponding asset allocations and final account approvals, as recorded in Minute number 98 dated July 3, 2024.
On September 29, 2025, it was announced to the market that the Superintendencia de Bancos of Panama authorized the implementation of a corporate reorganization involving the Panamanian subsidiary Banistmo S.A. and other affiliates of Grupo Cibest in Panama. The reorganization includes the partial spin-off by Valores Banistmo S.A. and Banistmo Capital Markets Group Inc. of certain resource portfolios in favor of the beneficiary company VB Panamá S.A.; the subsequent merger of VB Panamá S.A. with Banistmo S.A., the latter being the absorbing entity, and the partial spin-off by Banistmo S.A. of 100% of the shares it holds in Valores Banistmo S.A. in favor of Cibest Panamá Assets S.A., a Panamanian company wholly owned by Grupo Cibest.
Once the Corporate Reorganization is completed, Valores Banistmo S.A. will remain a subsidiary of Grupo Cibest, with no changes to the ultimate shareholders or the control structure, and will retain its securities brokerage and investment management licenses, both granted by the Superintendencia del Mercado de Valores of Panama.
As of September 30, 2025, Grupo Cibest Consolidated has 33,934 employees, 35,701 banking correspondents, 6,126 ATMs and operates through 840 offices.
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NOTE 2. MATERIAL ACCOUNTING POLICIES
A. Basis for preparation of the Condensed Consolidated Interim Financial Statements
The condensed consolidated interim financial statements for the cumulative nine months ended on September 30, 2025 have been prepared in accordance with International Accounting Standard 34: Interim Financial Reporting (“IAS 34”), issued by the International Accounting Standards Board (hereinafter, IASB). They do not include all the information and disclosures required for full annual financial statements and should be read in conjunction with Grupo Cibest Consolidated financial statements for the year ended on December 31, 2024 which complied with International Financial Reporting Standards (hereinafter, IFRS) issued by the IASB, as well as the interpretations issued by the International Financial Reporting Interpretations Committee (hereinafter, IFRS-IC). The Condensed Consolidated Interim Financial Statements as of September 30, 2025 and 2024 have not been audited.
Preparation of the Condensed Consolidated Interim Financial Statements under going concern basis
Management has assessed the Group’s ability to continue as a going concern and confirms that Grupo Cibest Consolidated has adequate liquidity and solvency to continue operating the business for the foreseeable future, which is at least, but is not limited to, 12 months from the end of the reporting period. Based on the Group's liquidity position at the date of authorization of the condensed consolidated interim financial statements, Management maintains a reasonable expectation that it has adequate liquidity and solvency to continue in operation for at least the next 12 months and that the going concern basis of accounting remains appropriate.
The condensed consolidated interim financial statements were prepared on a going concern basis and do not include any adjustments to the reported carrying amounts and classification of assets, liabilities and expenses that might otherwise be required if the going concern basis were not correct.
In the Management opinion, these condensed consolidated interim financial statements reflect all material adjustments considered necessary in the circumstances and based on the best information available as of September 30, 2025 and the date of their promulgation and issuance, for a fair representation of financial results for the interim periods presented.
The results of operations for the cumulative nine months ended on September 30, 2025 and 2024 are not necessarily indicative of the results for the full year. Grupo Cibest Consolidated believes that the disclosures are sufficient to make the information presented not misleading or biased. For this reason, the condensed consolidated interim financial statements include selected explanatory notes to explain events and transactions that are important to the financial statements users or represent significant materiality in understanding the changes in the Group’s financial position and performance since the last annual audited financial statements.
Assets and liabilities are measured at cost or amortized cost, except for some financial assets and liabilities and investment properties that are measured at fair value. Financial assets and liabilities measured at fair value comprise those classified as assets and liabilities at fair value through profit or loss, debt instruments and equity securities measured at fair value through other comprehensive income (“OCI”) and derivative instruments. Likewise, the carrying value of assets and liabilities recognized as a fair value hedge are adjusted for changes in fair value attributable to the hedged risk. Almost, investments in associates and joint ventures are measured using the equity method.
The condensed consolidated interim financial statements are stated in Colombian pesos (“COP”) and figures are stated in millions or billions (when indicated), except earnings per share, diluted earnings per share, dividends per share and the exchange rate, which are stated in units of Colombian pesos, while other currencies (dollars, euro, pounds, etc.) are stated in thousands.
F-11
The Parent Company’s financial statements, which have been prepared in accordance with “Normas de Contabilidad e Información Financiera” (“NCIF”) applicable to separate financial statements, are those that serve as the basis for the regulatory compliance, distribution of dividends and other appropriations by the shareholders.
The separate financial statements are those presented by the Parent Company in which the entity recognizes and measures the impairment of credit risk through allowances for loans losses, the classification and measurement of certain financial instruments (such as debt securities and equity instruments) and the recognition of provisions for foreclosed assets, in accordance with the accounting required by the “Superintendencia Financiera de Colombia” (“SFC”), which differ in certain accounting principles from IFRS that are used in the condensed consolidated interim financial statements.
Transactions between entities under common control
Combinations of entities under common control refer to those transactions in which all the combining entities are under the control of Grupo Cibest Consolidated both before and after the combination, and that control is not transitory.
For transactions under common control, Cibest has elected, as an accounting policy, to use the predecessor value method for the recognition of intercompany transactions. This means that the assets and liabilities spun off from the entity or business being spun off are recognized in the separate financial statements of the receiving company at their carrying amount, as recorded prior to the transaction date.
Cibest presents the net assets received retrospective from the date of the transfer.
The financial statements for the third quarter and year-end 2024 are presented as consolidated financial statements, reflecting the Bancolombia Group’s structure in effect during that period. In accordance with the adopted policy, historical financial statements are used as if the new corporate structure had always been in place. Consequently, the comparative information of the holding company match those of the former parent company. During the second quarter of 2025, the company assumed the position of parent within the economic group. Therefore, from that date onward, the financial statements presented include all the subsidiaries previously consolidated by Bancolombia. For more information, see Note 1 – Reporting Entity.
B. Use of estimates and judgments
The preparation of condensed consolidated interim financial statements requires that the Group's Management makes judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
The estimates and underlying assumptions are reviewed on an ongoing basis. Changes in accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
For the period ended on September 30, 2025 there were no changes in the significant estimates and judgments made by Management in applying the Group's accounting, as compared to those applied in the consolidated financial statements at the year ended on December 31, 2024.
C. Material accounting policies and recently issued accounting pronouncements
F-12
The same accounting policies and methods of calculation applied in the consolidated financial statements for the year ended on December 31, 2024 continue to be applied in these condensed consolidated interim financial statements, except for the adoption of new standards, improvements and interpretations effective from January 1, 2025, as shown below:
New rule SEC Staff Accounting Bulletin (SAB) No. 122 Standard: Staff Accounting Bulletin SAB 122, issued by the SEC on January 23, 2025, rescinded SAB 121, which required recognition in the financial statements of an asset and a liability reflecting its obligation to safeguard crypto assets. Under the new guidance, entities must assess whether they recognize a liability related to the risk of loss arising from such an obligation, and if so, the recognition and measurement of that liability shall follow the requirements for contingent liabilities in accordance with the principles of IAS 37 Provisions, Contingent Liabilities and Contingent Assets.
Recently accounting pronouncements issued by IASB pending to incorporate in NCIF framework accepted in Colombia
New standard NIIF 18 Presentation and Disclosure in Financial Statements: In April 2024, the Board issued IFRS 18 to replace IAS 1 Presentation of Financial Statements. IFRS 18 introduces three sets of new requirements to improve the way companies report their financial performance and give investors a better basis for analyzing and comparing companies:
•Improved comparability in the statement of income: IFRS 18 introduces three defined categories for income and expenses (operating, investing and financing) to improve the structure of the statement of income, and requires all companies to provide new defined subtotals, including operating profit.
•Enhanced transparency of management-defined performance measures: The new standard requires companies to disclose explanations of those company-specific measures that are related to the statement of income, referred to as management-defined performance measures.
•More useful grouping of information in the financial statements: IFRS 18 sets out enhanced guidance on how to organize information and whether to provide it in the primary financial statements or in the notes. In addition, the new standard requires companies to provide more transparency about operating expenses, helping investors to find and understand the information they need.
IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027, and early application is permitted.
Management is assessing the impact that these amendments will have on the Group's condensed consolidated interim financial statements and disclosures.
F-13
NOTE 3. OPERATING SEGMENTS
Operating segments are defined as components of an entity about which separate financial information is available and that is evaluated regularly by the chief operating decision maker (CODM) in deciding how to allocate resources and assessing performance; the CODM is comprised of the Group’s President (CEO) and Financial Vicepresident (CFO). The segment information has been prepared following the Group’s accounting policies and has been presented consistently with the internal reports provided to the CODM.
The chief operating decision maker (CODM) uses a variety of information and key financial data on a segment basis to assess the performance and make decisions regarding the investment and allocation of resources, such as:
•Net interest margin (Net margin on financial instruments divided by average interest-earning assets).
•Return on average total assets (Net income divided by average total assets).
•Return on average stockholders’ equity.
•Efficiency ratio (Operating expenses as a percentage of interest, fees, services and other operating income).
•Asset quality and loan coverage ratios.
The Group has the following segments: Banking Colombia, Banking Panama, Banking El Salvador, Banking Guatemala, Trust, Investment Banking, Brokerage, International Banking and All other segments. The factors used to identify the Group’s reportable segments are the nature of the products and services provided by the subsidiaries and the geographical locations where the subsidiaries are domiciled, in line with the CODM’s operating decisions related to the results of each segment.
The Group’s operating segments are comprised as follows:
•Banking Colombia
This segment provides individual and corporate banking products and services to individuals, businesses, and national and local governments in Colombia. The Parent Company's business strategy seeks to meet customers' financial needs and is based on personalized service, a friendly and approachable attitude, and the generation of added value, ensuring quality of service and fostering business growth and national development.
To offer specialized services to individuals, small and medium-sized enterprises (SMEs), and large corporations, the Individual Sales Force classifies its target customers as Personal, Plus, and Business. The Corporate and Government Sales Force focuses on and specializes in companies with revenues of more than COP 100,000 across twelve economic sectors: agriculture, commerce, manufacturing of supplies and materials, consumer goods, financial services, healthcare, education, construction, government, infrastructure, real estate, and natural resources.
This segment is responsible for managing the Grupo Cibest Consolidated operations with its own portfolio, liquidity, and distribution of treasury products and services to its clients in Colombia.
•Banking Panama
F-14
This segment provides individual and corporate banking products and services to individuals, businesses, and national and local governments in Panama. Banca Panamá includes operations of Banistmo S.A. and its operating subsidiaries: Banistmo Investment Corporation S.A., Leasing Banistmo S.A., and Desarrollo de Oriente S.A., and the following non-operating subsidiaries: Banistmo Panamá Fondo de Inversión S.A., Banistmo Capital Markets Group Inc., Anavi Investment Corporation S.A., Steens Enterprises S.A., and Ordway Holdings S.A.
On September 29, 2025, it was announced to the market that the Superintendencia de Bancos of Panama authorized the implementation of a corporate reorganization involving the Panamanian subsidiary Banistmo S.A. and other affiliates of Grupo Cibest in Panama. The reorganization includes the partial spin-off by Valores Banistmo S.A. and Banistmo Capital Markets Group Inc. of certain resource portfolios in favor of the beneficiary company VB Panamá S.A.; the subsequent merger of VB Panamá S.A. with Banistmo S.A., the latter being the absorbing entity, and the partial spin-off by Banistmo S.A. of 100% of the shares it holds in Valores Banistmo S.A. in favor of Cibest Panamá Assets S.A., a Panamanian company wholly owned by Grupo Cibest, for more information see Note 1. Reporting Entity.
This segment is also responsible for the management of Banistmo’s proprietary trading activities, liquidity and distribution of treasury products and services to its client base in Panama.
•Banking El Salvador
This segment provides retail and commercial banking products and services to individuals, companies and national and local governments in El Salvador through Banco Agrícola S.A.. Banking El Salvador also includes operations of the following subsidiaries: Banagrícola S.A., Inversiones Financieras Banco Agrícola S.A. IFBA, Bagrícola Costa Rica S.A., Gestora de Fondos de Inversión Banagricola, S.A., Valores Banagrícola S.A. de C.V., Accelera S.A. de C.V. (before Credibac S.A. de C.V.) and Arrendadora Financiera S.A. Arfinsa.
This segment is also responsible for the management of Banco Agrícola’s proprietary trading activities, liquidity and distribution of treasury products and services to its client base in El Salvador.
•Banking Guatemala
This segment provides retail and commercial banking and insurance products and services to individuals, companies and national and local governments in Guatemala through Banco Agromercantil de Guatemala S.A., Banking Guatemala also includes operations of the following subsidiaries: Seguros Agromercantil S.A., Financiera Agromercantil S.A., Agrovalores S.A., Arrendadora Agromercantil S.A., Asistencia y Ajustes S.A., Serproba S.A., Servicios de Formalización S.A., Conserjería, Mantenimiento y Mensajería S.A.(company in liquidation), New Alma Enterprises LTD. The assets and liabilities of operations in Barbados through Mercom Bank were transferred to other companies, leaving the balances of the credit portfolio and deposit portfolio at zero as of January 31, 2023. As of September 30, 2025, the liquidation of this company has been approved by the public registry and is in the process of being approved by the Central Bank of Barbados, for further information, see Note 1. Reporting Entity.
This segment is also responsible for the management of Banco Agromercantil’s proprietary trading activities, liquidity and distribution of treasury products and services to its client base in Guatemala.
•Trust
This segment provides trust and asset management services to clients in Colombia through Fiduciaria Bancolombia S.A. Sociedad Fiduciaria.
F-15
The main products offered by this segment include money market accounts, mutual and pension funds, private equity funds, payment trust, custody services and corporate trust.
•Investment banking
This segment provides corporate and project financial advisory services, underwriting, capital markets services and private equity management through Banca de Inversión Bancolombia S.A. Corporación Financiera. Its customers include private and publicly-held corporations as well as government institutions.
•Brokerage
This segment provides brokerage, investment advisory and private banking services to individuals and institutions through Valores Bancolombia S.A. Comisionista de Bolsa. It sells and distributes equities, futures, foreign currencies, fixed income securities, mutual funds and structured products.
This segment also includes the operations of Cibest Capital Holdings USA LLC (before Bancolombia Capital Holdings USA LLC), Cibest Capital Securities LLC (before Bancolombia Capital LLC) and Cibest Capital Advisory Services LLC (before Bancolombia Capital Advisers LLC). to provide broker-dealer and investment advisor services in the United States.
•International Banking
This segment provides a complete line of international banking services to Colombian and foreign customers through Bancolombia Panamá S.A. and Bancolombia Puerto Rico International, Inc. It offers loans to private sector companies, trade financing, leases financing and financing for industrial projects, as well as a complete portfolio of cash management products, such as checking accounts, international collections and payments. Through these subsidiaries, the Group also offers investment opportunities in U.S. dollars, savings and checking accounts, time deposits, and investment funds to its high net worth clients and private banking customers.
Operations in the Cayman Islands through Sinesa Cayman, Inc. (before Bancolombia Cayman S.A.) have been canceled or transferred. As of September 30, 2025, the company is in the process of dissolution and liquidation. For further information, see Note 1. Reporting entity.
•All other segments
This segment provides financial and operating lease activities, including leasing services to clients in Colombia. Bancolombia offers these services mainly through Renting Colombia S.A.S.. Additionally, the Group provides real estate service through the FCP Fondo Inmobiliario Colombia, P.A. FAI CALLE 77, P.A. Nomad Salitre, P.A. Mercurio, P.A. Nomad Central, P.A. Calle 84 (2), P.A. Calle 84 (3), P.A. Cedis Sodimac, P.A. Nomad Distrito Vera and P.A. Nexo. The General Assembly of Shareholders approved the liquidation of Transportempo S.A.S. (minute No. 98 of July 3, 2024).
This segment also includes results from the operations of other investment vehicles of the Group: Valores Simesa S.A., Negocios Digitales Colombia S.A.S., Inversiones CFNS S.A.S., Sistema de Inversiones y Negocios S.A. Sinesa, Cibest Panama Assets S.A. and the technology services company Wompi S.A.S. In addition, it includes Wenia LTD, a corporate
F-16
vehicle for the creation and implementation of operating systems and software applications and it includes Wenia S.A.S. and Wenia P.A.
In accordance with IFRS 8, the figures reported in "all other segments" combine the information on operating segments that did not meet the quantitative thresholds defined by this same standard, i.e., the absolute individual amount of their reported results is, in absolute terms, less than 10 percent of the combined results of all segments and their assets represent less than 10 percent of the combined assets of all operating segments of the Group.
Financial performance by operating segment:
The CODM reviews the performance of the Group using the following financial information by operating segment:
| For the nine -month period ending September 30, 2025 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Banking<br><br>Colombia | Banking<br><br>Panama | Banking El<br><br>Salvador | Banking<br><br>Guatemala | Trust | Investment<br><br>banking | Brokerage | International<br><br>Banking | All other<br><br>segments | Total<br><br>segments | |
| In millions of COP | ||||||||||
| Total interest and valuation on financial instruments | 19,604,615 | 1,951,679 | 1,553,967 | 1,534,901 | 62 | 868 | 53,010 | 771,209 | 179,723 | 25,650,034 |
| Interest income on loans and financial leases | 18,271,475 | 1,607,870 | 1,356,613 | 1,409,143 | 62 | 866 | 3,136 | 650,513 | 183,478 | 23,483,156 |
| Debt investments | 1,520,071 | 275,809 | 196,796 | 130,885 | - | 2 | 36,675 | 72,511 | 1,264 | 2,234,013 |
| Derivatives, net | (185,638) | 2,466 | - | - | - | - | (248) | (57) | (5,019) | (188,496) |
| Liquidity operations, net | (1,293) | 65,534 | 558 | (5,127) | - | - | 13,447 | 48,242 | - | 121,361 |
| Interest expenses | (7,445,389) | (940,854) | (330,029) | (689,813) | (115) | - | (95) | (510,728) | (139,358) | (10,056,381) |
| Net interest margin and valuation on financial instruments before impairment on loans and financial leases, off balance sheet credit instruments and other financial instruments | 12,159,226 | 1,010,825 | 1,223,938 | 845,088 | (53) | 868 | 52,915 | 260,481 | 40,365 | 15,593,653 |
| Credit impairment charges, net | (2,248,811) | (50,339) | (253,972) | (336,014) | (722) | (182) | (45) | (100,320) | (34,400) | (3,024,805) |
| Net interest margin and valuation on financial instruments after impairment on loans and financial leases, off balance sheet credit instruments and other financial instruments | 9,910,415 | 960,486 | 969,966 | 509,074 | (775) | 686 | 52,870 | 160,161 | 5,965 | 12,568,848 |
| (Expenses) Revenues from transactions by the operating segments of the Bank | (126,125) | (26,185) | 2,329 | (63,484) | (52,414) | 3,756 | 76,409 | 265,058 | (79,344) | - |
| Fees and commissions income(1) | 4,428,833 | 384,480 | 451,408 | 168,250 | 379,248 | 51,449 | 116,118 | 42,403 | 46,199 | 6,068,388 |
| Fees and commissions expenses | (2,305,235) | (199,501) | (217,122) | (72,783) | (5,161) | (63) | (8,299) | (8,538) | (5,104) | (2,821,806) |
| Total fees and commissions, net | 2,123,598 | 184,979 | 234,286 | 95,467 | 374,087 | 51,386 | 107,819 | 33,865 | 41,095 | 3,246,582 |
| Other operating income (expenses) | 820,340 | 28,980 | 49,463 | 94,729 | 8,881 | (465) | 1,454 | 12,690 | 1,517,518 | 2,533,590 |
| Dividends and net income on equity investments(2) | 74,231 | 3,378 | 2,822 | 2,153 | 29,563 | 54,323 | 3,679 | 25 | 211,521 | 381,695 |
| Total operating income, net | 12,802,459 | 1,151,638 | 1,258,866 | 637,939 | 359,342 | 109,686 | 242,231 | 471,799 | 1,696,755 | 18,730,715 |
| Operating expenses(3) | (7,017,090) | (637,714) | (615,719) | (492,411) | (129,960) | (43,339) | (156,563) | (81,092) | (808,745) | (9,982,633) |
| Impairment, depreciation and amortization | (581,608) | (77,147) | (62,933) | (41,357) | (2,622) | (71) | (2,266) | (1,929) | (31,390) | (801,323) |
| Total operating expenses | (7,598,698) | (714,861) | (678,652) | (533,768) | (132,582) | (43,410) | (158,829) | (83,021) | (840,135) | (10,783,956) |
| Profit before income tax | 5,203,761 | 436,777 | 580,214 | 104,171 | 226,760 | 66,276 | 83,402 | 388,778 | 856,620 | 7,946,759 |
(1)For further information about income from contracts with customers, see Note 16.3. Commissions.
(2)For further information see Note 16.5. Dividends and net income on equity investments.
(3)Includes salaries and employee benefits, other administration and general expenses and taxes other than income tax.
F-17
| For the three-month period from July 1 to September 30, 2025 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Banking<br><br>Colombia | Banking<br><br>Panama | Banking El<br><br>Salvador | Banking<br><br>Guatemala | Trust | Investment<br><br>banking | Brokerage | International<br><br>Banking | All other<br><br>segments | Total<br><br>segments | |
| In millions of COP | ||||||||||
| Total interest and valuation on financial instruments | 6,599,314 | 649,056 | 534,639 | 506,496 | 33 | 866 | 19,193 | 248,805 | 58,240 | 8,616,642 |
| Interest income on loans and financial leases | 6,083,086 | 525,336 | 468,670 | 459,323 | 33 | 866 | 1,095 | 214,724 | 60,900 | 7,814,033 |
| Debt investments | 670,093 | 99,599 | 65,780 | 48,731 | - | - | 13,501 | 22,776 | 517 | 920,997 |
| Derivatives, net | (132,712) | (366) | - | - | - | - | 62 | - | (3,177) | (136,193) |
| Liquidity operations, net | (21,153) | 24,487 | 189 | (1,558) | - | - | 4,535 | 11,305 | - | 17,805 |
| Interest expenses | (2,475,203) | (306,305) | (101,549) | (230,195) | (42) | - | (28) | (155,761) | (44,830) | (3,313,913) |
| Net interest margin and valuation on financial instruments before impairment on loans and financial leases, off balance sheet credit instruments and other financial instruments | 4,124,111 | 342,751 | 433,090 | 276,301 | (9) | 866 | 19,165 | 93,044 | 13,410 | 5,302,729 |
| Credit impairment charges, net | (572,427) | 4,202 | (110,200) | (97,909) | 340 | (397) | 93 | (42,903) | (9,720) | (828,921) |
| Net interest margin and valuation on financial instruments after impairment on loans and financial leases, off balance sheet credit instruments and other financial instruments | 3,551,684 | 346,953 | 322,890 | 178,392 | 331 | 469 | 19,258 | 50,141 | 3,690 | 4,473,808 |
| (Expenses) Revenues from transactions by the operating segments of the Bank | (39,191) | (10,626) | (534) | (18,446) | (17,824) | 932 | 26,450 | 82,104 | (22,865) | - |
| Fees and commissions income(1) | 1,524,556 | 130,453 | 154,134 | 61,766 | 130,597 | 33,934 | 41,265 | 13,258 | 17,240 | 2,107,203 |
| Fees and commissions expenses | (792,212) | (64,375) | (76,372) | (28,587) | (1,220) | (24) | (2,928) | (2,900) | (1,651) | (970,269) |
| Total fees and commissions, net | 732,344 | 66,078 | 77,762 | 33,179 | 129,377 | 33,910 | 38,337 | 10,358 | 15,589 | 1,136,934 |
| Other operating income (expenses) | 278,347 | 6,865 | 14,332 | 16,333 | 3,095 | (81) | 646 | 5,652 | 541,110 | 866,299 |
| Dividends and net income on equity investments(2) | 21,773 | 1,793 | 218 | (17) | 14,781 | 23,171 | 2,470 | 160 | 58,670 | 123,019 |
| Total operating income, net | 4,544,957 | 411,063 | 414,668 | 209,441 | 129,760 | 58,401 | 87,161 | 148,415 | 596,194 | 6,600,060 |
| Operating expenses(3) | (2,383,250) | (200,623) | (205,939) | (164,210) | (42,759) | (14,744) | (52,908) | (27,311) | (242,718) | (3,334,462) |
| Impairment, depreciation and amortization | (195,184) | (25,488) | (20,290) | (12,336) | (925) | (24) | (745) | (556) | (10,974) | (266,522) |
| Total operating expenses | (2,578,434) | (226,111) | (226,229) | (176,546) | (43,684) | (14,768) | (53,653) | (27,867) | (253,692) | (3,600,984) |
| Profit before income tax | 1,966,523 | 184,952 | 188,439 | 32,895 | 86,076 | 43,633 | 33,508 | 120,548 | 342,502 | 2,999,076 |
(1)For further information about income from contracts with customers, see Note 16.3. Commissions.
(2)For further information see Note 16.5. Dividends and net income on equity investments.
(3)Includes salaries and employee benefits, other administration and general expenses and taxes other than income tax.
| For the nine-month period ending September 30, 2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Banking<br><br>Colombia | Banking<br><br>Panama | Banking El<br><br>Salvador | Banking<br><br>Guatemala | Trust | Investment<br><br>banking | Brokerage | International<br><br>Banking | All other<br><br>segments | Total<br><br>segments | |
| In millions of COP | ||||||||||
| Total interest and valuation on financial instruments | 20,989,547 | 2,000,418 | 1,344,875 | 1,406,884 | 49 | 4 | 35,436 | 910,493 | 208,281 | 26,895,987 |
| Interest income on loans and financial leases | 19,634,832 | 1,688,803 | 1,181,760 | 1,302,259 | 49 | - | 4,221 | 729,249 | 210,252 | 24,751,425 |
| Debt investments | 1,255,955 | 240,134 | 161,802 | 103,049 | - | 4 | 26,412 | 92,678 | 13 | 1,880,047 |
| Derivatives, net | (94,145) | 2,121 | 757 | - | - | - | (1,753) | - | (1,984) | (95,004) |
| Liquidity operations, net | 192,905 | 69,360 | 556 | 1,576 | - | - | 6,556 | 88,566 | - | 359,519 |
| Interest expenses | (8,901,092) | (973,141) | (320,313) | (575,027) | (133) | - | (126) | (511,830) | (116,821) | (11,398,483) |
| Net interest margin and valuation on financial instruments before impairment on loans and financial leases, off balance sheet credit instruments and other financial instruments | 12,088,455 | 1,027,277 | 1,024,562 | 831,857 | (84) | 4 | 35,310 | 398,663 | 91,460 | 15,497,504 |
| Credit impairment charges, net | (3,597,869) | (334,165) | (184,467) | (265,362) | (946) | (315) | (25) | (77,342) | (62,108) | (4,522,599) |
| Net interest margin and valuation on financial instruments after impairment on loans and financial leases, off balance sheet credit instruments and other financial instruments | 8,490,586 | 693,112 | 840,095 | 566,495 | (1,030) | (311) | 35,285 | 321,321 | 29,352 | 10,974,905 |
| (Expenses) Revenues from transactions by the operating segments of the Bank | (113,771) | (28,322) | (17,304) | (60,811) | (41,911) | 6,082 | 62,026 | 304,094 | (110,083) | - |
| Fees and commissions income(1) | 4,117,878 | 415,298 | 366,359 | 156,059 | 328,332 | 59,109 | 97,038 | 38,136 | 24,508 | 5,602,717 |
| Fees and commissions expenses | (2,075,431) | (194,592) | (159,988) | (60,219) | (2,716) | (87) | (6,795) | (7,394) | (2,287) | (2,509,509) |
| Total fees and commissions, net | 2,042,447 | 220,706 | 206,371 | 95,840 | 325,616 | 59,022 | 90,243 | 30,742 | 22,221 | 3,093,208 |
| Other operating income | 584,652 | 36,359 | 31,688 | 66,802 | 8,125 | 1,071 | 2,780 | 8,293 | 1,392,956 | 2,132,726 |
| Dividends and net income on equity investments(2) | (164,588) | 9,409 | 3,239 | 1,519 | 36,558 | (114,503) | 1,799 | 15 | 177,785 | (48,767) |
| Total operating income, net | 10,839,326 | 931,264 | 1,064,089 | 669,845 | 327,358 | (48,639) | 192,133 | 664,465 | 1,512,231 | 16,152,072 |
| Operating expenses(3) | (6,264,391) | (608,148) | (544,463) | (450,666) | (116,800) | (36,688) | (138,421) | (65,563) | (807,981) | (9,033,121) |
| Impairment, depreciation and amortization | (576,686) | (82,183) | (66,346) | (37,352) | (2,152) | (67) | (2,062) | (1,536) | (35,922) | (804,306) |
| Total operating expenses | (6,841,077) | (690,331) | (610,809) | (488,018) | (118,952) | (36,755) | (140,483) | (67,099) | (843,903) | (9,837,427) |
| Profit before income tax | 3,998,249 | 240,933 | 453,280 | 181,827 | 208,406 | (85,394) | 51,650 | 597,366 | 668,328 | 6,314,645 |
(1)For further information about income from contracts with customers, see Note 16.3. Commissions.
(2)For further information see Note 16.5. Dividends and net income on equity investments.
(3)Includes salaries and employee benefits, other administration and general expenses and taxes other than income tax.
F-18
| For the three-month period from July 1 to September 30, 2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Banking<br><br>Colombia | Banking<br><br>Panama | Banking El<br><br>Salvador | Banking<br><br>Guatemala | Trust | Investment<br><br>banking | Brokerage | International<br><br>Banking | All other<br><br>segments | Total<br><br>segments | |
| In millions of COP | ||||||||||
| Total interest and valuation on financial instruments | 6,807,942 | 696,456 | 475,115 | 495,135 | 4 | 2 | 17,412 | 294,806 | 68,246 | 8,855,118 |
| Interest income on loans and financial leases | 6,277,689 | 578,660 | 417,578 | 452,596 | 4 | - | 1,223 | 247,461 | 68,231 | 8,043,442 |
| Debt investments | 563,198 | 96,500 | 57,282 | 43,423 | - | 2 | 13,088 | 25,529 | 13 | 799,035 |
| Derivatives, net | (83,858) | 809 | 11 | - | - | - | 306 | - | 2 | (82,730) |
| Liquidity operations, net | 50,913 | 20,487 | 244 | (884) | - | - | 2,795 | 21,816 | - | 95,371 |
| Interest expenses | (2,828,147) | (342,200) | (111,122) | (203,896) | (48) | - | (40) | (181,538) | (35,527) | (3,702,518) |
| Net interest margin and valuation on financial instruments before impairment on loans and financial leases, off balance sheet credit instruments and other financial instruments | 3,979,795 | 354,256 | 363,993 | 291,239 | (44) | 2 | 17,372 | 113,268 | 32,719 | 5,152,600 |
| Credit impairment charges, net | (1,220,453) | (139,759) | (54,068) | (75,957) | (264) | (355) | (21) | (71,614) | (26,345) | (1,588,836) |
| Net interest margin and valuation on financial instruments after impairment on loans and financial leases, off balance sheet credit instruments and other financial instruments | 2,759,342 | 214,497 | 309,925 | 215,282 | (308) | (353) | 17,351 | 41,654 | 6,374 | 3,563,764 |
| (Expenses) Revenues from transactions by the operating segments of the Bank | (48,872) | (8,021) | (2,588) | (25,300) | (14,750) | 489 | 21,273 | 114,847 | (37,078) | - |
| Fees and commissions income(1) | 1,386,847 | 140,207 | 132,227 | 56,780 | 113,887 | 18,485 | 32,802 | 12,370 | 9,174 | 1,902,779 |
| Fees and commissions expenses | (708,206) | (71,999) | (56,970) | (21,432) | (894) | (4) | (2,151) | (1,968) | (811) | (864,435) |
| Total fees and commissions, net | 678,641 | 68,208 | 75,257 | 35,348 | 112,993 | 18,481 | 30,651 | 10,402 | 8,363 | 1,038,344 |
| Other operating income | 281,100 | 11,058 | 7,986 | 13,732 | 2,998 | 146 | 793 | 2,771 | 441,729 | 762,313 |
| Dividends and net income on equity investments(2) | 158 | 2,648 | (1,161) | 22 | 22,063 | 12,905 | (1,297) | 1 | 56,662 | 92,001 |
| Total operating income, net | 3,670,369 | 288,390 | 389,419 | 239,084 | 122,996 | 31,668 | 68,771 | 169,675 | 476,050 | 5,456,422 |
| Operating expenses(3) | (2,117,109) | (213,043) | (193,297) | (162,438) | (41,256) | (12,971) | (46,224) | (22,949) | (266,896) | (3,076,183) |
| Impairment, depreciation and amortization | (188,031) | (28,884) | (27,312) | (12,816) | (765) | (21) | (673) | (468) | (11,592) | (270,562) |
| Total operating expenses | (2,305,140) | (241,927) | (220,609) | (175,254) | (42,021) | (12,992) | (46,897) | (23,417) | (278,488) | (3,346,745) |
| Profit before income tax | 1,365,229 | 46,463 | 168,810 | 63,830 | 80,975 | 18,676 | 21,874 | 146,258 | 197,562 | 2,109,677 |
(1)For further information about income from contracts with customers, see Note 16.3. Commissions.
(2)For further information see Note 16.5. Dividends and net income on equity investments.
(3)Includes salaries and employee benefits, other administration and general expenses and taxes other than income tax.
NOTE 4. CASH AND CASH EQUIVALENTS
For purposes of the Condensed Consolidated Interim Statement of cash flow and the Condensed Consolidated Interim Statement of Financial Position, the following assets are considered as cash and cash equivalents:
| September 30, 2025 | December 31, 2024 | |
|---|---|---|
| In millions of COP | ||
| Cash and balances at central bank | ||
| Cash | 8,847,484 | 9,439,363 |
| Due from central banks(1) | 7,690,032 | 7,504,135 |
| Due from other private financial entities | 7,360,587 | 7,778,937 |
| Checks on hold | 157,267 | 132,929 |
| Remittances of domestic negotiated checks in transit | 19,341 | 26,172 |
| Total cash and due from banks | 24,074,711 | 24,881,536 |
| Money market transactions | ||
| Interbank borrowings(2) | 4,008,403 | 2,239,615 |
| Reverse repurchase agreements and other similar secured loans(3) | 2,413,088 | 5,722,948 |
| Total money market transactions | 6,421,491 | 7,962,563 |
| Total cash and cash equivalents | 30,496,202 | 32,844,099 |
(1)According to External Resolution No. 3 of 2024 of Banco de la República de Colombia, which amends External Resolution No. 5 of 2008, Bancolombia S.A. must maintain, the equivalent of 7% of the deposits mentioned in Article 1, paragraph (a), and the equivalent of 2.5% of its customer’s deposits with a maturity of less than 18 months (paragraph b), as ordinary reserve, represented in deposits at the Central Bank or as cash in hand. In addition, according to Resolution Number 177 of 2002 issued by the Guatemala Monetary Board, Grupo Agromercantil Holding through its subsidiary Banco Agromercantil de Guatemala must maintain the equivalent of 14.60% of its customer’s deposits daily balances as a legal banking reserve, represented in unrestricted deposits at the Bank of Guatemala. Additionally, circular SBP-DR-CIRCULAR-2024-0036 dated July 02, 2024, communicates the decision of the Superintendency of Banks of Panama to maintain the percentage established in the General
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Resolution of the Board of Directors SBP-GJD-0003-2014 dated January 28, 2014, which sets at 30.00% the minimum legal liquidity rate that Panamanian banks must maintain. Finally, in accordance with temporary rule NPBT-14, which is effective from July 30, 2025, to January 13, 2026, Banco Agrícola must maintain an equivalent average daily amount of its deposits and debt instruments in issue as a liquidity reserve between 1.00% and 16.00% represented in unrestricted deposits or debt instruments in issue by El Salvador Central Bank. Once the complete term established, the bank continues with the Technical Norm (NRP-28), issued by the Central Bank, where the Bank must maintain an equivalent amount between 1.00% and 18.00%, which has been in effect since June 23, 2021.
(2)The increase is mainly presented in Bancolombia Panama S.A and Bancolombia S.A.
(3)The variation is mainly generated by the decrease in Reverse repurchase agreements and other similar secured loans in simultaneous operations with the Cámara de Riesgo Central de Contraparte in Colombia.
As of September 30, 2025 and December 31, 2024, there is restricted cash amounting to COP 653,084 and COP 530,924, respectively, included in other assets on the Condensed Consolidated Interim Statement of Financial Position, which represents margin deposits pledged as collateral for derivative contracts traded through Colombian clearing houses.
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NOTE 5. FINANCIAL ASSETS INVESTMENTS AND DERIVATIVES
5.1 Financial assets investments
The Group’s securities portfolios at fair value through profit or loss, other comprehensive income and at amortized cost are listed below, as of September 30, 2025 and December 31, 2024:
As of September 30, 2025
| Financial assets investments | Measurement methodology | Total carrying<br><br>value, net | |||||
|---|---|---|---|---|---|---|---|
| Fair value through<br><br>profit or loss | Fair value through other<br><br>comprehensive income, net | Amortized<br><br>cost, net | |||||
| In millions of COP | |||||||
| Securities issued by the Colombian Government(1) | 13,103,430 | 2,608,441 | 142,527 | 15,854,398 | |||
| Securities issued by foreign governments | 10,559,200 | 1,160,006 | 515,540 | 12,234,746 | |||
| Corporate bonds | 124,168 | 949,290 | 3,616,283 | 4,689,741 | |||
| Securities issued by government entities | 121,507 | - | 3,964,144 | 4,085,651 | |||
| Securities issued by other financial institutions(2)(3) | 1,010,192 | 90,281 | 288,779 | 1,389,252 | |||
| Total debt instruments | 24,918,497 | 4,808,018 | 8,527,273 | 38,253,788 | |||
| Total equity securities | 976,266 | 445,411 | - | 1,421,677 | |||
| Total other instruments financial(4) | 29,250 | - | - | 29,250 | |||
| Total financial assets investments | 25,924,013 | 5,253,429 | 8,527,273 | 39,704,715 |
(1)The increase in investments in financial assets measured at fair value through profit or loss is mainly due to the acquisition of Colombian treasury instruments (TES) by Bancolombia S.A.
(2)Includes mortgage-backed securities (TIPS) measured at fair value through profit or loss amounting to COP 104,482. For further information on TIPS’ fair value measurement see Note 21. Fair value of assets and liabilities.
(3)At September 30, 2025, the Group has recognized in the Condensed Consolidated Interim Statement of Comprehensive Income COP 50,267 related to debt instruments at fair value through OCI.
(4)Corresponds to convertible notes or agreements for the future purchase of shares, Simple Agreement for Future Equity “SAFE”, by Cibest Panamá Assets, S.A., Banagrícola S.A., Inversiones CFNS S.A.S. and Bancolombia S.A.
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As of December 31, 2024
| Financial assets investments | Measurement methodology | Total carrying<br><br>value, net | |||||
|---|---|---|---|---|---|---|---|
| Fair value through<br><br>profit or loss | Fair value through other<br><br>comprehensive income, net | Amortized<br><br>cost, net | |||||
| In millions of COP | |||||||
| Securities issued by the Colombian Government | 11,644,181 | 2,683,925 | 159,323 | 14,487,429 | |||
| Securities issued by foreign governments | 10,283,450 | 1,484,546 | 651,494 | 12,419,490 | |||
| Corporate bonds | 257,326 | 639,108 | 3,612,049 | 4,508,483 | |||
| Securities issued by government entities | 118,760 | - | 3,380,491 | 3,499,251 | |||
| Securities issued by other financial institutions(1)(2) | 731,564 | 276,837 | 601,521 | 1,609,922 | |||
| Total debt instruments | 23,035,281 | 5,084,416 | 8,404,878 | 36,524,575 | |||
| Total equity securities | 537,213 | 474,097 | - | 1,011,310 | |||
| Total other instruments financial(3) | 34,385 | - | - | 34,385 | |||
| Total financial assets investments | 23,606,879 | 5,558,513 | 8,404,878 | 37,570,270 |
(1)Includes mortgage-backed securities (TIPS) measured at fair value through profit or loss amounting to COP 142,945. For further information on TIPS’ fair value measurement see Note 21. Fair value of assets and liabilities.
(2)At December 31, 2024, the Group has recognized in the Consolidated Statement of Comprehensive Income COP 23,236 related to debt instruments at fair value through OCI.
(3)Corresponds to convertible notes or agreements for the future purchase of shares, Simple Agreement for Future Equity “SAFE”, by Inversiones CFNS S.A.S., Sistema de Inversiones y Negocios, S.A. and Banagrícola S.A.
The following table shows the breakdown of the changes in the gross carrying amount of the debt securities at fair value through other comprehensive income and amortized cost, in order to explain their significance to the changes in the loss allowance for the same portfolio as discussed above:
As of September 30, 2025
| Debt instruments portfolio measure at fair value through OCI and amortized cost | Stage 1 | Stage 2 | Stage 3 | Total |
|---|---|---|---|---|
| In millions of COP | ||||
| Gross carrying amount as at 1 January 2025 | 12,998,652 | 454,065 | 36,577 | 13,489,294 |
| Transfer from stage 1 to stage 2(1) | (142,528) | 142,528 | - | - |
| Sales and maturities(2) | (5,945,278) | - | - | (5,945,278) |
| Purchases and renewals(3) | 3,891,018 | 2,490,647 | - | 6,381,665 |
| Valuation and payments | (74,937) | 71,522 | (15,664) | (19,079) |
| Foreign Exchange | (518,743) | (49,320) | (3,248) | (571,311) |
| Gross carrying amount as at 30 September 2025 | 10,208,184 | 3,109,442 | 17,665 | 13,335,291 |
(1)Stage transfer in Colombian treasury instruments (TES) by Bancolombia Panamá S.A. and Bancolombia Puerto Rico Internacional Inc.
(2)The lowest value is mainly found in the sale of securities issued by foreign governments by Banistmo S.A. and securities issued by government entities by Bancolombia S.A.
(3)The decrease corresponds mainly to purchase of securities issued by government entities by Bancolombia S.A., securities issued by foreign governments by Banistmo S.A. and Bancolombia Panama S.A., and corporate bonds by Bancolombia S.A. and Bancolombia Panama S.A.
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As of December 31, 2024
| Debt instruments portfolio measure at fair value through OCI and amortized cost | Stage 1 | Stage 2 | Stage 3 | Total |
|---|---|---|---|---|
| In millions of COP | ||||
| Gross carrying amount as at 1 January 2024 | 12,760,342 | 205,133 | 30,784 | 12,996,259 |
| Transfer from stage 1 to stage 2(1) | (294,440) | 294,440 | - | - |
| Transfer from stage 2 to stage 1(2) | 12,678 | (12,678) | - | - |
| Sales and maturities | (7,928,390) | (171,505) | - | (8,099,895) |
| Purchases and renewals | 7,975,932 | 129,455 | - | 8,105,387 |
| Valuation and payments | (125,564) | 3,806 | 984 | (120,774) |
| Foreign Exchange | 598,094 | 5,414 | 4,809 | 608,317 |
| Gross carrying amount as at 31 December 2024 | 12,998,652 | 454,065 | 36,577 | 13,489,294 |
(1)Stage transfer in corporate bonds by Banistmo S.A., Bancolombia Puerto Rico Internacional Inc and Bancolombia Panamá S.A.
(2)Stage transfer in corporate bonds by Banagrícola S.A.
The following table shows the impairment detail for the debt instruments portfolio using the expected credit losses model:
As of September 30, 2025
| Concept | Stage 1 | Stage 2 | Stage 3 | Total |
|---|---|---|---|---|
| In millions of COP | ||||
| Securities at amortized cost, net | 8,020,627 | 488,981 | 17,665 | 8,527,273 |
| Carrying amount | 8,033,185 | 494,022 | 50,463 | 8,577,670 |
| Loss allowance | (12,558) | (5,041) | (32,798) | (50,397) |
| Securities at fair value through other comprehensive income(1) | 2,187,557 | 2,620,461 | - | 4,808,018 |
| Total debt instruments portfolio measure at fair value through OCI and amortized cost | 10,208,184 | 3,109,442 | 17,665 | 13,335,291 |
(1)Loss allowance of investments at fair value through OCI corresponds to COP 7,282 classified in stage 1 to COP 3,177 and in stage 2 to COP 4,105; the loss allowance increase in relation to 2024 from COP 769 is due to the acquisition of instruments from COP 4,313, compensated by a decrease from COP (1,504) is due to sales and maturities, and from COP (1,769) in net provisions recognized during the period and foreign exchange from COP (271).
As of December 31, 2024
| Concept | Stage 1 | Stage 2 | Stage 3 | Total |
|---|---|---|---|---|
| In millions of COP | ||||
| Securities at amortized cost, net | 7,975,158 | 393,143 | 36,577 | 8,404,878 |
| Carrying amount | 8,008,567 | 401,263 | 53,985 | 8,463,815 |
| Loss allowance | (33,409) | (8,120) | (17,408) | (58,937) |
| Securities at fair value through other comprehensive income(1) | 5,023,494 | 60,922 | - | 5,084,416 |
| Total debt instruments portfolio measure at fair value through OCI and amortized cost | 12,998,652 | 454,065 | 36,577 | 13,489,294 |
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(1) Loss allowance of investments at fair value through OCI corresponds to COP 6,513 classified mainly in stage 1 to COP 5,734.
The following table sets forth the changes in the allowance for debt instruments measured at amortized cost:
As of September 30, 2025
| Concept | Stage 1 | Stage 2 | Stage 3 | Total |
|---|---|---|---|---|
| In millions of COP | ||||
| Loss allowance of January 1, 2025 | 33,409 | 8,120 | 17,408 | 58,937 |
| Transfer from stage 1 to stage 2(1) | (1,605) | 1,605 | - | - |
| Sales and maturities(2) | (5,462) | - | - | (5,462) |
| Purchases and renewals(3) | 6,975 | - | - | 6,975 |
| Net provisions recognized during the period | (18,988) | (3,989) | 18,215 | (4,762) |
| Foreign Exchange(4) | (1,771) | (695) | (2,825) | (5,291) |
| Loss allowance of September 30, 2025 | 12,558 | 5,041 | 32,798 | 50,397 |
(1)Stage transfer in Colombian treasury instruments (TES) by Bancolombia Panamá S.A. and Bancolombia Puerto Rico Internacional Inc.
(2)The decrease compared to 2024 corresponds mainly to provisions for securities issued by foreign governments by Banagrícola S.A.
(3)Impairment is mainly in securities issued by government entities by Bancolombia S.A.
(4)The decrease is due to the variation in the market representative rate during the year 2025.
As of September 30, 2024
| Concept | Stage 1 | Stage 2 | Stage 3 | Total |
|---|---|---|---|---|
| In millions of COP | ||||
| Loss allowance of January 1, 2024 | 29,939 | 11,913 | 13,951 | 55,803 |
| Transfer from stage 2 to stage 1(1) | 346 | (346) | - | - |
| Sales and maturities | (5,131) | (5,895) | - | (11,026) |
| Purchases and renewals(2) | 6,408 | - | - | 6,408 |
| Net provisions recognized during the period | (3,052) | (3,693) | 630 | (6,115) |
| Foreign Exchange | 1,856 | 378 | 1,333 | 3,567 |
| Loss allowance of September 30, 2024 | 30,366 | 2,357 | 15,914 | 48,637 |
(1)Stage transfer in corporate bonds by Banagrícola S.A.
(2)Impairment is mainly in securities issued by government entities and corporate bonds by Bancolombia S.A. and Banistmo S.A.
The Group has recognized in the condensed consolidated interim statement of comprehensive income related to equity securities and trust funds at fair value through OCI as of September 30, 2025, and 2024, COP 9,578 and COP 7,294, respectively. See condensed consolidated interim statement of comprehensive income.
Equity securities that are measured at fair value through OCI are considered strategic for the Group and, thus, there is no intention to sell them in the foreseeable future and that is the main reason for using this presentation alternative.
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The following table details the equity instruments designated at fair value through OCI analyzed by listing status:
| Equity securities | Carrying amount | |||
|---|---|---|---|---|
| September 30, 2025 | December 31, 2024 | |||
| In millions of COP | ||||
| Securities at fair value through OCI: | ||||
| Equity securities listed in Colombia | 2 | 2 | ||
| Equity securities listed in foreign countries | 71,082 | 76,795 | ||
| Equity securities unlisted: | ||||
| Telered S.A. | 132,871 | 160,761 | ||
| Asociación Gremial de Instituciones Financieras Credibanco S.A. | 108,599 | 109,011 | ||
| Transacciones y Transferencias, S. A. | 37,498 | 55,401 | ||
| Compañía de Procesamiento de Medios de Pago Guatemala (Bahamas), S. A. | 36,629 | 18,913 | ||
| Cámara de Riesgo Central de Contraparte de Colombia S.A. | 19,327 | 17,385 | ||
| Pexton Holdings Limited | 9,312 | - | ||
| Suncolombia SAS | 5,885 | - | ||
| Derecho Fiduciario Inmobiliaria Cadenalco | 4,252 | 4,212 | ||
| Others | 19,954 | 31,617 | ||
| Total equity securities at fair value through OCI | 445,411 | 474,097 |
As of September 30, 2025 and 2024 impairment loss was recognized on equity securities for COP 538 and COP 0, respectively. Dividends received from equity investments at fair value through OCI held as of September 30, 2025 and 2024 amounted to COP 10,862 and COP 14,369, respectively. See Note 16.5. Dividends and net income on equity investments.
5.2 Derivative financial instruments
The Group’s derivative activities do not give rise to significant open positions in portfolios of derivatives. The Group enters into derivative transactions to facilitate customer business, for hedging purposes and arbitrage activities, such as forwards, options or swaps where the underlying are exchange rates, interest rates and securities.
A swap agreement is a contract between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. Financial futures and forward settlement contracts are agreements to buy or sell a quantity of a financial instrument (including another derivative financial instrument), index, currency or commodity at a predetermined rate or price during a period or at a date in the future. Futures and option contracts are standardized agreements for future delivery, traded on exchanges that typically act as a platform.
For further information related to the objectives, policies and processes for managing the Group’s risk, please see Risk Management.
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The following table sets forth the carrying values of the Group’s derivatives by type of risk as of September 30, 2025 and December 31, 2024:
| Derivatives | September 30, 2025 | December 31, 2024 |
|---|---|---|
| In millions of COP | ||
| Forwards | ||
| Assets | ||
| Foreign exchange contracts | 2,784,434 | 1,084,830 |
| Equity contracts | 4,222 | 51,645 |
| Subtotal assets | 2,788,656 | 1,136,475 |
| Liabilities | ||
| Foreign exchange contracts | 3,072,031 | 972,295 |
| Equity contracts | 17,002 | 1,367 |
| Subtotal liabilities | 3,089,033 | 973,662 |
| Total forwards(1) | (300,377) | 162,813 |
| Swaps | ||
| Assets | ||
| Foreign exchange contracts | 955,212 | 1,463,256 |
| Interest rate contracts | 185,069 | 236,033 |
| Subtotal assets | 1,140,281 | 1,699,289 |
| Liabilities | ||
| Foreign exchange contracts | 1,283,027 | 1,332,431 |
| Interest rate contracts | 214,626 | 291,068 |
| Subtotal liabilities | 1,497,653 | 1,623,499 |
| Total swaps(2) | (357,372) | 75,790 |
| Options | ||
| Assets | ||
| Foreign exchange contracts | 113,188 | 102,378 |
| Subtotal assets | 113,188 | 102,378 |
| Liabilities | ||
| Foreign exchange contracts | 173,816 | 82,482 |
| Subtotal liabilities | 173,816 | 82,482 |
| Total options | (60,628) | 19,896 |
| Derivative assets | 4,042,125 | 2,938,142 |
| Derivative liabilities | 4,760,502 | 2,679,643 |
(1)(1) As of September 30, 2025, there is a variation in the forward assets and liabilities with respect to those outstanding in December 2024. Of the total of 14,404 transactions, 10,078 transactions have matured as of September 2025, generating positive results for the Bank. Additionally, in September, it was evident that of the 19,575 outstanding foreign currency forward transactions, 60% of these remained in active positions, generating valuation income for the
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company, while the remaining 40% remained in passive positions. This is due to price curves, nodes, and exchange rate fluctuations.
(2)As of September 30, 2025, there is a variation due to the valuation of CVA (Credit Valuation Adjustment) and DVA (Debt Valuation Adjustment) in the portfolio of current operations. Likewise, the variation in the representative market rate and compliance with swap flows are highlighted to explain the fluctuation.
NOTE 6. LOANS AND ADVANCES TO CUSTOMERS, NET
Loans and financial leasing operating portfolio
The following is the composition of the loans and financial leasing operations portfolio, net as of September 30, 2025 and December 31, 2024:
| Composition | September 30, 2025 | December 31, 2024 |
|---|---|---|
| In millions of COP | ||
| Commercial | 151,191,414 | 153,252,811 |
| Consumer | 56,166,566 | 55,815,683 |
| Mortgage | 42,940,217 | 41,741,601 |
| Financial Leases | 27,788,342 | 27,291,604 |
| Small Business Loans | 1,886,084 | 1,352,209 |
| Total gross loans and advances to customers | 279,972,623 | 279,453,908 |
| Total allowance | (14,370,189) | (16,179,738) |
| Total Net loans and advances to customers | 265,602,434 | 263,274,170 |
Allowance for loans losses
The following table sets forth the changes in the allowance for loans and advances and lease losses as of September 30, 2025 and 2024:
As of September 30, 2025
| Concept | Commercial | Consumer | Mortgage | Financial<br><br>Leases | Small<br><br>business<br><br>loans | Total |
|---|---|---|---|---|---|---|
| In millions of COP | ||||||
| Balance at January 1, 2025 | 7,259,230 | 6,497,777 | 1,235,177 | 1,088,272 | 99,282 | 16,179,738 |
| Loan sales(1) | (298,786) | - | - | - | - | (298,786) |
| Recovery of charged - off loans(2) | 126,550 | 427,386 | 23,063 | 68,868 | 1,516 | 647,383 |
| Credit impairment charges on loans, advances and financial leases, net(3) | 496,010 | 2,432,838 | (7,024) | 43,921 | 83,995 | 3,049,740 |
| Adjusted stage 3(4) | 208,108 | 339,693 | 37,527 | 49,031 | 4,570 | 638,929 |
| Charges-off(2) | (1,106,870) | (3,929,703) | (125,419) | (188,422) | (48,013) | (5,398,427) |
| Translation adjustment(5) | (190,632) | (211,088) | (38,749) | (4,646) | (3,273) | (448,388) |
| Balance at September 30, 2025 | 6,493,610 | 5,556,903 | 1,124,575 | 1,057,024 | 138,077 | 14,370,189 |
(1)Corresponds to the release of loan allowances related to portfolio sales.
(2)This amount results from collections of previously charged off loans.
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(3)The loss allowance for the accumulated year 2025 decreased by 32% compared to the same period of the previous year. This reduction is attributed to the improved performance of all portfolios.
(4)Recognized as a reduction to Interest Income on loans and financial leases in Condensed Consolidated Interim Statement of Income, in accordance with IFRS 9.
(5)The variation is due to the increase in the market representative rate from COP 4,409.15 in December 2024 to COP 3,923.55 in September 2025.
.
As of September 30, 2024
| Concept | Commercial | Consumer | Mortgage | Financial<br><br>Leases | Small<br><br>business<br><br>loans | Total |
|---|---|---|---|---|---|---|
| In millions of COP | ||||||
| Balance at January 1, 2024 | 6,290,266 | 7,717,038 | 1,023,206 | 1,024,575 | 168,018 | 16,223,103 |
| Loan sales(1) | (156,923) | - | - | - | - | (156,923) |
| Recovery of charged - off loans(2) | 61,172 | 439,386 | 34,333 | 60,194 | 4,236 | 599,321 |
| Credit impairment charges on loans, advances and financial leases, net(3) | 1,062,984 | 3,092,367 | 170,506 | 149,358 | 9,980 | 4,485,195 |
| Adjusted stage 3(4) | 247,596 | 443,703 | 29,164 | 53,597 | 7,265 | 781,325 |
| Charges-off(2) | (681,883) | (4,740,554) | (103,818) | (166,414) | (75,831) | (5,768,500) |
| Translation adjustment(5) | 144,884 | 172,400 | 29,942 | 5,355 | 2,165 | 354,746 |
| Balance at September 30, 2024 | 6,968,096 | 7,124,340 | 1,183,333 | 1,126,665 | 115,833 | 16,518,267 |
(1)Corresponds to the release of loan allowances related to portfolio sales.
(2)This amount results from collections of previously charged off loans.
(3)The loss allowance for the first nine months of 2024 decreased by 21% compared to the same period of the previous year. This reduction is primarily due to a decrease in the expenditure for the provision of credit losses on the consumer portfolio. This is a result of the lending and collection actions that the Bank initiated in 2023, which have had positive effects in 2024. Additionally, the reduction in the provision for credit losses due to macroeconomic variables, generated by the decrease in the interest rate in Colombia, is noteworthy.
(4)Recognized as a reduction to Interest Income on loans and financial leases in Condensed Consolidated Interim Statement of Income, in accordance with IFRS 9.
(5)The variation is due to the decrease in the market representative rate from COP 3,822.05 in December 2023 to COP 4,178.30 in September 2024.
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The following table presents information about the nature and effects of changes in the contractual cash flows of the loan portfolio that did not result in derecognition and the effect of these changes on the measurement of expected credit losses.
| Changes in the contractual cash flows of the loan portfolio that did not result in derecognition | ||
|---|---|---|
| In millions of COP | ||
| September 30, 2025 | December 31, 2024 | |
| Loan portfolio modified during the period | ||
| Amortized cost before modification | 5,127,172 | 7,563,621 |
| Net gain or loss on changes | (138,684) | (560,552) |
| Loan portfolio modified since initial recognition | ||
| Gross carrying value of the previously modified loan portfolio for which the allowance for losses has been changed from the asset's life to the expected credit losses for 12 months. | 382,939 | 325,028 |
Impact of movements in the value of the portfolio and loss allowance by Stage
Variation September 2025 vs December 2024
Stage 1 (12-month expected credit losses)
Exposure in Stage 1 increased by COP 2,495,753, while the loss allowance decreased by COP 329,662. The growth in portfolio exposure at this stage is mainly driven by a stronger disbursement dynamic throughout 2025. The reduction in the loss allowance reflects placements in better credit risks, which require lower provisioning levels.
Stage 2 (Lifetime expected credit losses)
Exposure in Stage 2 increased by COP 665,346, and the loss allowance rose by COP 247,443. The variation in both the exposure and the provision is primarily due to the deterioration of specific commercial loan clients.
Stage 3 (Lifetime expected credit losses)
Exposure in Stage 3 decreased by COP 2,642,384, and the loss allowance declined by COP 1,727,330. This reduction in exposure and provisioning is mainly attributable to improved performance across all portfolios.
Variation December 2024 vs December 2023
The following explains the significant changes in the loans and the allowance for loan losses by category during the periods ended on December 31, 2024 and 2023 as a result of applying the expected credit loss model according to IFRS 9:
Stage 1 (12-month expected credit losses)
The exposure in Stage 1 increased by COP 22,899,408 and the loss allowance decreased by COP (1,520,924). The increase in the portfolio in this Stage is mainly due to the dynamics of disbursements in the corporate portfolio and the restatement of dollar loans into Colombian Pesos due to the increase in the exchange rate. The decrease in the loss allowance is due to a higher portfolio participation in lower-risk categories and the macroeconomic impact on the PD (probability of default) models, which have a more favorable economic outlook, where a downward trend in interest rates in Colombia is observed, which positively affects the portfolios of individuals.
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Stage 2 (Lifetime expected credit losses)
The exposure in Stage 2 increased by COP 627,630 and the loss allowance increased by COP 137,359. The increase in exposure is mainly due to clients in the corporate portfolio classified as medium risk, through monitoring by the Special Client Management Committee, and a higher number of restructurings compared to the previous year. The increase in the provision is consistent with the arrival of these clients.
Stage 3 (Lifetime expected credit losses)
The exposure in Stage 3 increased by COP 1,975,223, and the loss allowance increased by COP 1,340,200. This variation in exposure and provisions is primarily due to the deterioration of clients in the legal entity portfolio, which includes both corporate clients and SMEs. Significant defaults were particularly observed in the pharmaceutical, commerce, manufacturing, and construction sectors.
As of September 30, 2025
| Maximum exposure to credit risk | ||||
|---|---|---|---|---|
| In millions of COP | ||||
| Stage 1 | Stage 2 | Stage 3 | Total | |
| Commercial | 137,317,012 | 5,274,862 | 8,599,540 | 151,191,414 |
| Consumer | 47,876,173 | 5,226,327 | 3,064,066 | 56,166,566 |
| Mortgage | 38,189,242 | 2,920,073 | 1,830,902 | 42,940,217 |
| Financial Leases | 22,894,300 | 3,629,374 | 1,264,668 | 27,788,342 |
| Small Business Loans | 1,491,323 | 285,001 | 109,760 | 1,886,084 |
| Total gross loans and advances to customers | 247,768,050 | 17,335,637 | 14,868,936 | 279,972,623 |
| Total allowance | (1,845,317) | (2,921,204) | (9,603,668) | (14,370,189) |
| Total Net loans and advances to customers | 245,922,733 | 14,414,433 | 5,265,268 | 265,602,434 |
As of December 31, 2024
| Maximum exposure to credit risk | ||||
|---|---|---|---|---|
| In millions of COP | ||||
| Stage 1 | Stage 2 | Stage 3 | Total | |
| Commercial | 137,761,467 | 5,545,788 | 9,945,556 | 153,252,811 |
| Consumer | 46,697,013 | 5,118,607 | 4,000,063 | 55,815,683 |
| Mortgage | 37,076,580 | 2,701,930 | 1,963,091 | 41,741,601 |
| Financial Leases | 22,561,434 | 3,212,710 | 1,517,460 | 27,291,604 |
| Small Business Loans | 1,175,803 | 91,256 | 85,150 | 1,352,209 |
| Total gross loans and advances to customers | 245,272,297 | 16,670,291 | 17,511,320 | 279,453,908 |
| Total allowance | (2,174,979) | (2,673,761) | (11,330,998) | (16,179,738) |
| Total Net loans and advances to customers | 243,097,318 | 13,996,530 | 6,180,322 | 263,274,170 |
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NOTE 7. ASSETS HELD FOR SALE AND INVENTORIES, NET
The breakdown of inventories and assets held for sale, net of the Group is as follows:
| Assets held for sale and inventories | September 30, 2025 | December 31, 2024 |
|---|---|---|
| In millions of COP | ||
| Inventories, net | 713,326 | 932,657 |
| Assets held for sale, net | 119,041 | 173,742 |
| Total assets held for sale and inventories, net | 832,367 | 1,106,399 |
7.1. Inventories, net
Due to the nature of the financial services provided by some subsidiaries of the Group, assets provided through operating or financial leases to third parties that do not exercise the purchase option or that do not have a purchase option, are recorded as inventories once the agreement expires, considering that in the course of the ordinary activities performed by such subsidiaries, those assets are routinely sold.
In addition, the Group companies have a business unit that develops real estate, which are sold in the ordinary course of business and are classified as inventories.
The Group’s inventories at September 30, 2025 and December 31, 2024, are summarized as follows:
| Inventories | September 30, 2025 | December 31, 2024 |
|---|---|---|
| In millions of COP | ||
| Lands and buildings(1) | 498,187 | 576,556 |
| Vehicles(2) | 198,888 | 365,173 |
| Machinery and others | 46,108 | 32,166 |
| Total inventory cost | 743,183 | 973,895 |
| Impairment | (29,857) | (41,238) |
| Total inventories, net | 713,326 | 932,657 |
(1)The decrease corresponds mainly to Fondo Inmobiliario Colombia, associated with autonomous equity structures engaged in projects for the sale of real estate unit.
(2) The decrease corresponds to higher sales in the period.
Impairment is recognized based on market price fluctuation due to the fact that the fair value is determined by the offering price less cost to sell.
There are no inventories pledged as collateral for liabilities as of September 30, 2025 and December 31, 2024.
7.2. Assets held for sale
The assets recognized by the Group as assets held for sale correspond to machinery, equipment, motor vehicles and technology, among others that have been received as foreclosed assets.
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These assets are subject to a current plan for their sale, which contains the details of the selling price allocation and the advertising and marketing plan. Furthermore, the plan specifies the conditions to proceed with the selling process.
The total balance of assets held for sale, by operating segment, are detailed below:
As of September 30, 2025
| Assets held for sale | Banking<br><br>Colombia | Banking<br><br>Panama | Banking<br><br>El Salvador | Banking<br><br>Guatemala | Total |
|---|---|---|---|---|---|
| In millions of COP | |||||
| Machinery and equipment | 5,325 | 4,654 | - | - | 9,979 |
| Cost | 5,389 | 4,764 | - | - | 10,153 |
| Impairment | (64) | (110) | - | - | (174) |
| Real estate for residential purposes | 1,227 | 92,703 | 1,220 | 9,668 | 104,818 |
| Cost | 1,227 | 95,889 | 1,220 | 9,668 | 108,004 |
| Impairment | - | (3,186) | - | - | (3,186) |
| Real estate different from residential properties | 136 | 4,108 | - | - | 4,244 |
| Cost | 136 | 4,108 | - | - | 4,244 |
| Total assets held for sale - cost | 6,752 | 104,761 | 1,220 | 9,668 | 122,401 |
| Total assets held for sale - impairment | (64) | (3,296) | - | - | (3,360) |
| Total assets held for sale(1) | 6,688 | 101,465 | 1,220 | 9,668 | 119,041 |
(1)For September 30, 2025 there are no assets related to investments held for sale.
As of December 31, 2024
| Assets held for sale | Banking<br><br>Colombia | Banking<br><br>Panama | Banking<br><br>El Salvador | Banking<br><br>Guatemala | Total |
|---|---|---|---|---|---|
| In millions of COP | |||||
| Machinery and equipment | 5,563 | 4,522 | - | - | 10,085 |
| Cost | 5,660 | 4,532 | - | - | 10,192 |
| Impairment | (97) | (10) | - | - | (107) |
| Real estate for residential purposes | 2,887 | 111,983 | 6,349 | 12,644 | 133,863 |
| Cost | 2,887 | 116,214 | 6,374 | 12,673 | 138,148 |
| Impairment | - | (4,231) | (25) | (29) | (4,285) |
| Real estate different from residential properties | 182 | 29,612 | - | - | 29,794 |
| Cost | 182 | 29,787 | - | - | 29,969 |
| Impairment | - | (175) | - | - | (175) |
| Total assets held for sale - cost | 8,729 | 150,533 | 6,374 | 12,673 | 178,309 |
| Total assets held for sale - impairment | (97) | (4,416) | (25) | (29) | (4,567) |
| Total assets held for sale(1) | 8,632 | 146,117 | 6,349 | 12,644 | 173,742 |
(1)For 2024 there are no assets related to investments held for sale.
Impairment losses are recognized for the difference between the carrying and recoverable amount of the asset.
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NOTE 8. INCOME TAX
The income tax is recognized in each of the countries where the Bank has operations, in accordance with the tax regulations in force in each of the jurisdictions.
8.1 Components recognized in the Consolidated Statement of Income
The next table details the total income tax for the nine-month period ending September 30, 2025 and 2024, and for the three-month period from July 1 to September 30, 2025 and 2024:
| Accumulated | Quarterly | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| In millions of COP | ||||
| Current tax(1) | ||||
| Fiscal term | (2,119,440) | (1,260,672) | (834,666) | (438,323) |
| Prior fiscal terms(2) | 67,429 | 162,049 | 308 | 106 |
| Total current tax | (2,052,011) | (1,098,623) | (834,358) | (438,217) |
| Deferred tax | ||||
| Fiscal term | (35,299) | (481,699) | 16,357 | (141,183) |
| Prior fiscal terms(2) | (55,554) | (68,752) | (289) | — |
| Adjustments for consolidation purposes | (53,848) | 679 | (24,460) | (10,792) |
| Total deferred tax | (144,701) | (549,772) | (8,392) | (151,975) |
| Total income tax(3) | (2,196,712) | (1,648,395) | (842,750) | (590,192) |
(1) The nominal income tax rate used in Colombia for the years 2025 and 2024 is 35%. The Colombian financial institutions of the Group liquidated some additional points in the income tax of 5%.
2) Mainly due to the effects of Sentence CE 26739 of January 25, 2024, in both Bancolombia S.A. and Renting Colombia S.A.S.; as well as for invoices received after the end of the year and industry and commerce tax paid prior to the filing of the income tax return.
(3) See table 8.3 Reconciliation of the effective tax rate.
8.2 Legal regulatory changes
In El Salvador, on March 14, 2024, Decree 969 was published in the Official Gazette with an amendment to article 4 of the Income Tax Law, which includes income obtained abroad among the income excluded from said tax.
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8.3 Reconciliation of the effective tax rate
The reconciliation between total income tax expenses calculated at the current nominal tax rate and the tax expense recognized in the condensed consolidated interim statement of income for the nine-month period ended September 30, 2025 and 2024, and the three-month period from July 1 to September 30, 2025 and 2024, is detailed below:
| Accumulated | Quarterly | |||
|---|---|---|---|---|
| Reconciliation of the tax rate | 2025 | 2024 | 2025 | 2024 |
| In millions of COP | ||||
| Accounting profit | 7,946,759 | 6,314,645 | 2,999,076 | 2,109,677 |
| Applicable tax with nominal rate(1) | (3,178,704) | (2,525,858) | (1,199,631) | (843,871) |
| Non-deductible expenses to determine taxable profit (loss) | (172,993) | (257,047) | (51,990) | (74,286) |
| Accounting and non-tax expense (income) to determine taxable profit (loss) | 401,982 | 492,664 | 135,638 | 165,652 |
| Differences in accounting bases(2) | 6,254 | 251,948 | (11,240) | 1,087 |
| Fiscal and non-accounting expense (income) to determine taxable profit (loss) | (252,892) | (468,021) | 39,235 | 19,118 |
| Ordinary activities income exempt from taxation | 919,137 | 1,020,551 | 215,035 | 188,436 |
| Ordinary activities income not constituting income or occasional tax gain | 87,368 | 67,004 | 10,600 | 2,669 |
| Tax deductions | 165,427 | 173,691 | 56,930 | 40,322 |
| Goodwill Depreciation | 346 | 2,652 | 115 | 120 |
| Tax depreciation surplus | 157,502 | 163,971 | 54,590 | 55,076 |
| Untaxed recoveries | (104,947) | (70,527) | (33,912) | (28,359) |
| Tax rate effect in other countries | (74,341) | (311,635) | 43,367 | (86,608) |
| Prior fiscal terms | 11,875 | 93,297 | 19 | 106 |
| Tax discounts | 8,500 | — | 8,500 | — |
| Other effects of the tax rate by reconciliation between accounting profit and tax expense (income) | (175,326) | (281,085) | (125,307) | (29,654) |
| Tax credits settlement | 4,100 | — | 15,301 | — |
| Total income tax | (2,196,712) | (1,648,395) | (842,750) | (590,192) |
1) The nominal income tax rate used in Colombia for the years 2025 and 2024 is 35%. The Colombian financial institutions of the Group liquidated some additional points in the income tax of 5%.
(2) Difference between the technical accounting frameworks in force and the full International Financial Reporting Standards (IFRS).
8.4 Components recognized in Other Comprehensive Income (OCI)
See Condensed Consolidated Interim Statement of Comprehensive Income
| September 30, 2025 | |||
|---|---|---|---|
| In millions of COP | |||
| Amounts before taxes | Deferred tax | Net taxes | |
| Remeasurement income related to defined benefit liability | 15,346 | (5,314) | 10,032 |
| Unrealized gain Investments in equity instruments measured at fair value through other comprehensive income (FVTOCI) | 7,773 | 1,805 | 9,578 |
| Unrealized gain Investments in debt instruments measured at fair value through other comprehensive income (FVTOCI) | 48,340 | 1,927 | 50,267 |
| Utility on net investment hedge in foreign operations | 293,165 | (112,321) | 180,844 |
| Exchange differences arising on translating the foreign operations. | (2,388,458) | — | (2,388,458) |
| Unrealized loss Cash flow hedge | (216) | 87 | (129) |
| Unrealized loss on investments in associates and joint ventures using equity method | (668) | (479) | (1,147) |
| Net | (2,024,718) | (114,295) | (2,139,013) |
F-34
| September 30, 2024 | |||
|---|---|---|---|
| In millions of COP | |||
| Amounts before taxes | Deferred tax | Net taxes | |
| Remeasurement income related to defined benefit liability | 15,028 | (5,293) | 9,735 |
| Unrealized gain Investments in equity instruments measured at fair value through other comprehensive income (FVTOCI) | 3,663 | 3,631 | 7,294 |
| Unrealized gain Investments in debt instruments measured at fair value through other comprehensive income (FVTOCI) | 53,454 | (4,881) | 48,573 |
| Loss on net investment hedge in foreign operations | (485,195) | 190,709 | (294,486) |
| Exchange differences arising on translating the foreign operations. | 1,829,072 | — | 1,829,072 |
| Unrealized loss on investments in associates and joint ventures using equity method | (9,432) | 1,456 | (7,976) |
| Net | 1,406,590 | 185,622 | 1,592,212 |
Quarterly results
| September 30, 2025 | |||
|---|---|---|---|
| In millions of COP | |||
| Amounts before taxes | Deferred tax | Net taxes | |
| Remeasurement income related to defined benefit liability | 361 | 151 | 512 |
| Unrealized loss Investments in equity instruments measured at fair value through other comprehensive income (FVTOCI) | (6,056) | 532 | (5,524) |
| Unrealized gain Investments in debt instruments measured at fair value through other comprehensive income (FVTOCI) | 48,004 | (3,996) | 44,008 |
| Loss on net investment hedge in foreign operations | 62,539 | 13,327 | 75,866 |
| Exchange differences arising on translating the foreign operations. | (777,876) | — | (777,876) |
| Unrealized loss on investments in associates and joint ventures using equity method | (222) | 120 | (102) |
| Net | (673,250) | 10,134 | (663,116) |
| September 30, 2024 | |||
| --- | --- | --- | --- |
| In millions of COP | |||
| Amounts before taxes | Deferred tax | Net taxes | |
| Remeasurement income related to defined benefit liability | — | 93 | 93 |
| Unrealized loss Investments in equity instruments measured at fair value through other comprehensive income (FVTOCI) | (9,439) | (1,763) | (11,202) |
| Unrealized gain Investments in debt instruments measured at fair value through other comprehensive income (FVTOCI) | 68,427 | (15,724) | 52,703 |
| Loss on net investment hedge in foreign operations | (33,195) | 12,555 | (20,640) |
| Exchange differences arising on translating the foreign operations. | 160,003 | — | 160,003 |
| Unrealized loss on investments in associates and joint ventures using equity method | (3,185) | 566 | (2,619) |
| Net | 182,611 | (4,273) | 178,338 |
8.5 Deferred tax
In accordance with its financial projections, the companies from the Bank’s expects in the future to generate enough liquid income to offset the items recorded as deductible deferred tax. These estimates start from the financial projections that were prepared considering information from the Cibest Group's economic research records, the expected economic environment for the next five years. The main indicators on which the models are based are GDP growth, loans growth and interest rates. In addition to these elements, the long-term Group's strategy is taken into account.
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The deferred tax asset and liability for each of the concepts that generated taxable or deductible temporary differences for the period ending September 30, 2025 are detailed below:
| December 31, 2024 | Effect on<br><br>Income<br><br>Statement | Effect on<br><br>OCI | Effect on<br><br>Equity(1) | Foreign<br><br>Exchange | Adjustments for<br><br>consolidation<br><br>purposes | September 30, 2025 | |
|---|---|---|---|---|---|---|---|
| In millions of COP | |||||||
| Asset Deferred Tax: | |||||||
| Property and equipment | 2,668 | (1,782) | — | — | (2,567) | 9,178 | 7,497 |
| Employee Benefits | 282,601 | 7,855 | (5,314) | — | (5,211) | — | 279,931 |
| Deterioration assessment | 612,213 | (73,702) | — | — | (66,292) | 6,540 | 478,759 |
| Investments evaluation | 5,278 | (286) | — | — | (37) | — | 4,955 |
| Derivatives Valuation | 6,063 | 312,936 | 87 | — | 2 | — | 319,088 |
| Tax credits settlement | 4,978 | (4,978) | — | — | — | — | — |
| Financial Obligations | 197,660 | (148,979) | — | — | 2,308 | (37,531) | 13,458 |
| Insurance operations | 34,906 | (21,359) | — | — | (3,844) | — | 9,703 |
| Bonuses(3) | 362,786 | (118,336) | (112,321) | — | 2 | — | 132,131 |
| Other deductions | 290,284 | (45,635) | — | — | (775) | — | 243,874 |
| implementation adjustment | 401,830 | 42,560 | — | — | (17,911) | — | 426,479 |
| Total Asset Deferred Tax (2) | 2,201,267 | (51,706) | (117,548) | — | (94,325) | (21,813) | 1,915,875 |
| Liability Deferred Tax: | |||||||
| Property and equipment | (114,638) | 54,549 | — | — | 2,291 | (160,632) | (218,430) |
| Employee Benefits | — | (50) | — | — | — | — | (50) |
| Deterioration assessment | (973,820) | 66,353 | — | — | — | 132,164 | (775,303) |
| Participatory titles evaluation | (377,994) | (59,150) | 3,732 | — | 2,402 | (2,491) | (433,501) |
| Derivatives evaluation | (82,375) | 80,493 | — | — | 87 | (791) | (2,586) |
| Lease restatement | (321,813) | (126,497) | — | — | 1 | — | (448,309) |
| Investments in associates. Adjustment for equity method | (24,805) | (1,507) | (479) | 10 | (2,409) | (285) | (29,475) |
| Financial Obligations | (556) | (72,465) | — | — | 61 | — | (72,960) |
| Goodwill | (1,574,360) | 500 | — | — | 786 | — | (1,573,074) |
| Insurance operations | (37,379) | 22,087 | — | — | 4,118 | — | (11,174) |
| Properties received in payment | (104,990) | (52,459) | — | — | 1,431 | — | (156,018) |
| Other deductions | (403,259) | 48,999 | — | — | 7,197 | — | (347,063) |
| implementation adjustment | (25) | — | — | — | (1) | — | (26) |
| Total Liability Deferred Tax (2) | (4,016,014) | (39,147) | 3,253 | 10 | 15,964 | (32,035) | (4,067,969) |
| Net Deferred Tax | (1,814,747) | (90,853) | (114,295) | 10 | (78,361) | (53,848) | (2,152,094) |
(1) Effects of the spin-off of Grupo Cibest and Bancolombia.
(2) The values revealed in the Unaudited Condensed Consolidated Interim Statement of Financial Position correspond to the sum of the net deferred tax per company.
(3) The movement in OCI is due to investment hedging.
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8.6 Amount of temporary differences in subsidiaries, branches, associates over which deferred tax was not recognized is
In accordance with IAS 12, no deferred tax credit was recorded, because management can control the future moment in which such differences are reversed and this is not expected to occur in the foreseeable future.
| September 30, 2025 | December 31, 2024 | |
|---|---|---|
| In millions of COP | ||
| Temporary differences | ||
| Local Subsidiaries(1) | (26,290,395) | (373,971) |
| Foreign Subsidiaries | (18,154,619) | (20,176,494) |
(1) Effect corresponding to the amount of temporary differences in subsidiaries on which no taxable deferred tax is recognized for the Cibest Group companies in accordance with the change in the corporate structure.
8.7 Dividends
8.7.1 Dividend Payment
If the parent company or any of its subsidiaries were to distribute dividends, they would be subject to the tax regulations of each of the countries in which they are decreed and distributed. In the case of Colombian companies, dividends will be subject to the application of Articles 48 and 49 of the Tax Statute and consequently will be subject to withholding at source at the established rates, in accordance with the tax characteristics of each shareholder.
8.7.2 Dividends received from Subsidiary Companies
Considering the historical tax status of the dividends received by the Bank from its affiliates and national subsidiaries, it is expected that in the future dividends will be received on the basis of non-income tax. They will not be subject to withholding tax, taking into account that the Bank, its affiliates and national subsidiaries belong to the same business group.
8.8 Tax contingent liabilities and assets
In the determination of the effective current and deferred taxes subject to review by the tax authority, the relevant regulations have been applied in accordance with the interpretations made by the Group.
In Colombia due to the complexity of the tax system, ongoing amendments to the tax regulations, accounting changes with implications on tax bases and in general the legal instability of the country, the tax authority may at any time have different criteria than that of the Cibest Group's. Consequently, a dispute or inspection by the tax authority on a tax treatment may affect the Cibest Group's accounting of assets or liabilities for deferred or current taxes, in accordance with the requirements of IAS 12. However, based on the criteria established in the interpretation of IFRIC 23, the Cibest Group's did not recognize uncertain tax positions in its financial statements.
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NOTE 9. DEPOSITS BY CUSTOMERS
The detail of the deposits of Grupo Cibest Consolidated as of September 30, 2025 and December 31, 2024 is as follows:
| Deposits | September 30, 2025 | December 31, 2024 |
|---|---|---|
| In millions of COP | ||
| Saving accounts(1)(2) | 129,225,050 | 124,636,994 |
| Time deposits | 110,059,531 | 109,760,722 |
| Checking accounts(3) | 36,136,097 | 38,033,696 |
| Other deposits(1) | 5,838,977 | 6,627,989 |
| Total deposits by customers | 281,259,655 | 279,059,401 |
(1) As of September 30, 2025 and December 31, 2024 includes Nequi Deposits by COP 5,548,955 and COP 4,449,420, respectively.
(2) The increase is mainly in Bancolombia S.A. in Corporate and Small and Medium-Sized Enterprises (SMEs) segment.
(3) The decrease is mainly present in Bancolombia S.A. due to market behavior, affecting the Corporate and Small and Medium-Sized Enterprises (SMEs) segment.
NOTE 10. INTERBANK DEPOSITS AND REPURCHASE AGREEMENTS AND OTHER SIMILAR SECURED BORROWING
The following table sets forth information regarding the money market operations recognized as liabilities in Condensed Consolidated Interim Statement of Financial Position:
| Interbank and repurchase agreements and other similar secured borrowing | September 30, 2025 | December 31, 2024 |
|---|---|---|
| In millions of COP | ||
| Interbank Deposits | ||
| Interbank liabilities(1) | 882,390 | 716,493 |
| Total interbank | 882,390 | 716,493 |
| Repurchase agreements and other similar secured borrowing | ||
| Temporary transfer of securities(2) | 1,836,720 | 532,495 |
| Repurchase agreements | 901,459 | 372,004 |
| Short selling operations | 436,412 | 155,973 |
| Total Repurchase agreements and other similar secured borrowing | 3,174,591 | 1,060,472 |
| Total money market transactions | 4,056,981 | 1,776,965 |
(1)The increase is mainly due to Bancolombia S.A.
(2)Increase recorded in Bancolombia due to repos in simultaneous operations, as of December 2024 there were 14 operations and by September 2025 increased to 51 operations mainly with the Cámara de Riesgo Central de Contraparte in Colombia.
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NOTE 11. BORROWINGS FROM OTHER FINANCIAL INSTITUTIONS
As of September 30, 2025 and December 31, 2024, the composition of the Group's borrowings from other financial institutions measured at amortized cost is the following:
| Borrowings from other financial institutions | September 30, 2025 | December 31, 2024 |
|---|---|---|
| In millions of COP | ||
| Obligations granted by foreign banks(1) | 6,476,259 | 10,619,033 |
| Obligations granted by domestic banks | 5,177,119 | 5,070,499 |
| Total borrowings from other financial institutions | 11,653,378 | 15,689,532 |
(1)The variation is due to cancellation of obligations for advance payments and maturities.
Obligations granted by foreign banks
As of September 30, 2025
| Financial entity | Rate Minimum | Rate Maximum | September 30, 2025 |
|---|---|---|---|
| In millions of COP | |||
| Financing with Correspondent Banks and Multilateral Entities(1) | 1.50% | 7.50% | 5,266,786 |
| Banco Interamericano de Desarrollo (BID) | 6.77% | 9.30% | 1,130,861 |
| Banco Latinoamericano de Comercio Exterior (Bladex) | 5.40% | 5.42% | 78,612 |
| Total | 6,476,259 |
(1)The variation is due to cancellation of obligations for advance payments and maturities.
As of December 31, 2024
| Financial entity | Rate Minimum | Rate Maximum | December 31, 2024 |
|---|---|---|---|
| In millions of COP | |||
| Financing with Correspondent Banks and Multilateral Entities | 1.50% | 8.99% | 9,959,214 |
| Banco Interamericano de Desarrollo (BID) | 8.47% | 9.62% | 614,946 |
| Banco Latinoamericano de Comercio Exterior (Bladex) | 5.80% | 5.80% | 44,873 |
| Total | 10,619,033 |
The maturities of the financial obligations with foreign entities as of September 30, 2025 and December 31, 2024 are the following:
| Foreign | September 30, 2025 | December 31, 2024 |
|---|---|---|
| In millions of COP | ||
| Amount expected to be settled: | ||
| No more than twelve months after the reporting period(1) | 3,252,455 | 7,428,943 |
| More than twelve months after the reporting period | 3,223,804 | 3,190,090 |
| Total | 6,476,259 | 10,619,033 |
(1)The variation is due to cancellation of obligations for advance payments and maturities.
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Obligations granted by domestic banks
As of September 30, 2025
| Financial entity | Rate<br><br>Minimum | Rate<br><br>Maximum | September 30, 2025 |
|---|---|---|---|
| In millions of COP | |||
| Fondo para el financiamiento del sector agropecuario (“Finagro”) | 3.78% | 17.19% | 2,467,661 |
| Financiera de desarrollo territorial (“Findeter”) | 5.25% | 12.03% | 1,276,536 |
| Banco de comercio exterior de Colombia (Bancoldex) | 2.17% | 16.65% | 350,752 |
| Other private financial entities | 4.83% | 10.13% | 1,082,170 |
| Total | 5,177,119 |
As of December 31, 2024
| Financial entity | Rate<br><br>Minimum | Rate<br><br>Maximum | December 31, 2024 |
|---|---|---|---|
| In millions of COP | |||
| Fondo para el financiamiento del sector agropecuario (“Finagro”) | 4.15% | 17.21% | 2,239,644 |
| Financiera de desarrollo territorial (“Findeter”) | 5.09% | 13.59% | 1,363,891 |
| Banco de comercio exterior de Colombia (Bancoldex) | 2.17% | 17.50% | 399,266 |
| Other private financial entities | 5.11% | 13.01% | 1,067,698 |
| Total | 5,070,499 |
The maturities of financial obligations with domestic banks as of September 30, 2025 and December 31, 2024, are as follows:
| Domestic | September 30, 2025 | December 31, 2024 |
|---|---|---|
| In millions of COP | ||
| Amount expected to be settled: | ||
| No more than twelve months after the reporting period | 218,864 | 679,069 |
| More than twelve months after the reporting period | 4,958,255 | 4,391,430 |
| Total | 5,177,119 | 5,070,499 |
As of September 30, 2025 and December 31, 2024, there were some financial covenants, mainly regarding capital adequacy ratios, past due loans and allowances, linked to some of the aforementioned outstanding credit facilities. None of these covenants had been breached nor were the related obligations past due.
NOTE 12. PROVISIONS AND CONTINGENT LIABILITIES
Contingent liabilities
Contingencies due to judicial or administrative proceedings/litigations in which Grupo Cibets Consolidated and the entities with which financial statements are consolidated as of September 30, 2025, are listed as follow, and that represents a contingency superior to USD 7,313.
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Some of the proceedings in which the claims are inferior and that were revelated in prior periods will be kept providing information about its evolution.
BANCOLOMBIA
Neos Group S.A.S. in reorganization proceeding and Inversiones Davanic S.A.S.
On November 3, 2022, Bancolombia S.A. was served of a lawsuit in which Neos Group S.A.S. and Inversiones Davanic S.A.S. alleges that a loan agreement was entered between them, rather than a lease agreement. Neos Group S.A.S. and Inversiones Davanic S.A.S. also requested the rescission of the purchase and sale agreement on the ground that the price of the property was lower than its fair price.
The Neos Group S.A.S. and Inversiones Davanic S.A.S.'s claims amount are COP 65,000. The contingency is qualified as remote because the parties always intended to celebrate a lease agreement and not a different type of contract. On December 7, 2022, Bancolombia S.A. filed a brief with its defenses. As of September 30, 2025, the Court has not summoned the initial hearing. There is no provision for this proceeding.
Public Interest Class Action - Carlos Julio Aguilar and other
In this proceeding, a public interest class action was filed, in which the plaintiffs allege that due to the restructuring of Departamento del Valle's financial obligations and its performance plan, the Departamento del Valle's collective rights of the public administration and the public funds of the were breached. Bancolombia S.A. filed its defenses arguing that the agreement was made in accordance with the law.
On November 15, 2024, the First Instance Court issued a judgement in favor of Bancolombia S.A. The plaintiffs filed an appeal against the first instance judgment. As of September 30, 2025, the Second Instance Court has not issued a final decision. The contingency is qualified as eventual and there is no provision for this proceeding.
Remediation Plan for Santa Elena´s property
In 1987, Banco de Colombia (today Bancolombia S.A.) received a property located in Municipio de Cartagena, Colombia from the Federación Nacional de Algodoneros. After the transfer of the property to Bancolombia S.A., soil contamination from pesticides and herbicides was found on the property. Bancolombia S.A. commenced a civil responsibility judicial proceeding against the Federación Nacional de Algodoneros alleging environmental contamination. On November 13, 2015, the Court issued the final judgment. In the judgment, the Court stated that the Federación Nacional de Algodoneros was liable for environmental damages and consequently, Bancolombia S.A. was not.
Despite not being liable for environmental damages, Bancolombia S.A. has assumed binding commitments to contract and pay for the property’s decontamination. As a result of these commitments, Bancolombia S.A. has conducted different decontamination processes over the years. Currently, Bancolombia S.A. has the approval of the Autoridad Nacional de Licencias Ambientales de Colombia (ANLA) for the execution of a remediation plan (plan de remediación) divided into 3 stages: Stage I, Stage II, and Stage III.
As of September 30, 2025, the ANLA's decision regarding the complementary studies of Stage I is still pending. Stage II concluded with the submission to ANLA of the report on the findings from the soil study. Likewise, pre-feasibility activities for Stage III are underway, and the implementation continues for the social management plan with the communities in the area of influence of the remediation plan, the emergency and contingency plan, the hazardous waste management plan, and the biotic environment protection plan.
The estimated time for the execution of the remediation plan is 36 months from July 2023, with the possibility of adjustment according to the results of the pre-feasibility and feasibility stage of Stage 3 and the supervening requirements of the competent authorities. As of September 30, 2025, there is a provision of COP 57,308 to attend the execution of the pending activities of the plan.
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Constructora Primar S.A.S (TERMINATED)
On June 7, 2022, Bancolombia S.A. was notified of a lawsuit filed by Incopav S.A.S., Constructora Primar S.A.S., Inversiones M & Galindo y Cía. S en C and Inversiones M & Baquero y Cía. S en C. The plaintiffs request the payment of the damages caused by Bancolombia S.A. for his decision not to fully finance of the Altos de San Jorge project.
The plaintiffs' claims amount are COP 107,344. The contingency is qualified as remote because the plaintiffs are not part of the mutual agreement entered into for the financing of the Altos de San Jorge project. On July 9, 2024, the First Instance Court ruled in favor of Bancolombia S.A. On February 19, 2025, the plaintiffs' appeal was deemed unsupported. The first instance judgment became final and binding. As of September 30, 2025, the proceeding is terminated.
Tuvacol S.A.
On July 18, 2024, Bancolombia S.A. was served of the lawsuit filed by Tuvacol S.A. Tuvacol S.A. is requesting the payment of the damages caused by the alleged irregular payment of checks charged to its checking account. Bancolombia S.A. argues that the payments of the checks were correct. The plaintiff’s claims are COP 56,769. On August 15, 2025 a favorable ruling was issued for Bancolombia. Tuvacol filed an appeal against the decision. As of September 30, 2025, the case is pending a decision by the second-instance judge. The contingency is qualified as eventual and has a provision for COP$5,676.
FIDUCIARIA BANCOLOMBIA
Quinta Sur S.A.S.
In March 2022, Fiduciaria Bancolombia was notified of a lawsuit filed by Quinta Sur S.A.S. in liquidation proceeding. According to the lawsuit, Quinta Sur seeks the indemnification for damages due to the non-transfer of the resources to beginning of a housing construction project, under the terms agreed in the trust agreement.
Fiduciaria Bancolombia alleges that it has complied with the law and the contract, arguing that the property on which the housing project was to be constructed did not fulfill the contractual requirements. The plaintiff’s claims amount are COP 128,599.
On August 24, 2023, the First Instance Court issued a favorable judgment to Fiduciaria Bancolombia. As of September 30, 2025, the Second Instance Court has not issued a final decision. The contingency is qualified as eventual and there is no provision for this proceeding.
Consorcio Vía al Mar
On September 22, 2025, the Fiduciary Company was served with the arbitration claim filed by Consultores del Desarrollo S.A.S. and Edgardo Navarro Vives, as members of the Consorcio Vía al Mar. The plaintiffs allege that the Fiduciary breached contractual obligations in the administration of the Autonomous Trust for the Cartagena-Barranquilla Highway Concession, and that such breach, according to their assessment, caused financial harm to the members of the Consortium. Fiduciaria Bancolombia believes it has acted in accordance with the law and the contract. The amount in controversy is COP 40.369.
As of September 30, 2025, the Arbitral Tribunal is pending to rule on a motion filed by the Fiduciary against the decision to admit the claim. The case has no provision. The contingency is qualified as remote.
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BANISTMO
Constructora Tymsa S.A.
In October 2021, Banistmo and Banistmo Investment were notified of a lawsuit in which the plaintiff alleged fraudulent acts involving the sale of the plaintiff´s property. Constructora Tymsa request the nullity of the public instrument of purchase through which property was transferred to Limipa S.A. Limipa S.A. requested a loan to Banistmo and guaranteed its obligation with an an administration and guarantee trust over the property. The trust was administered by Banistmo Investment. Constructora Tymsa alleges that the signatures and fingerprints in the public instrument of purchase, sale and in the mortgage in favor of Banistmo are false.
The plaintiff’s claims amount are USD 10,000, in addition to interests, costs and expenses. Banistmo and Banistmo Investment allege they are not liable for any intentional or negligent conduct regarding to the alleged fraudulent sale of the property. As of September 30,2025, the Court is pending of the resolution of three motions, including the motion for lack of jurisdiction alleged by the Bank, and to rule on the evidence presented in the proceeding. The Bank’s legal advisors have qualified the proceeding as eventual and there is no provision.
Deniss Rafael Pérez Perozo, Carlos Pérez Leal and others
Promotora Terramar (client of Banistmo, formerly HSBC Panamá) received USD 299, through Visa Gift Cards issued by a foreign bank. Theses payment were received as a partial payment of 2 apartments located in Panamá City.
On June 3, 2028, the Credit Card Securities and Fraud Prevention department of the HSBC bank detected an irregular activity by Promotora Terramar, when a monitoring alert was activated due to the high number of cards with the same BIN and bank. Therefore, pursuant to the Business Establishments Affiliate Agreement, HSBC reversed funds from Promotora Terramar´s accounts for COP 287. Nevertheless, after further investigations the money was refunded.
On October 2013, the plaintiffs filed a claim for compensation of the material and moral damages caused, which according to their valuation, amounts to USD 5,252,000. Banistmo alleges it has complied with the contractual terms outlined in the Affiliate Agreement, that Mr. and Mrs Perez Leal are not customers of the Bank and thar the statute of limitations deadline has lapsed.
As of September 30, 2025, the lawsuit has not been notified to the parties. The contingency is qualified as remote and there is no provision for this proceeding.
DD&C, Carlos Pérez Leal and Others
In October 2022, Banistmo received a communication announcing the filing of a legal action in the Tribunal of First Instance of Kaloum in the Republic of Guinea. This action was commenced by Inversiones DD&C, Carlos Perez Leal and other natural persons against the Central Bank of the Republic of Guinea (“BCRG”) and five international banks, including Banistmo. The action seeks compensatory damages derived from alleged fraud involving six international transfers for a total USD 1,900 that Inversiones DD&C, who was a client of Banistmo at the time, ordered to be made to a bank account at the BCRG.
The parties who commenced the action are seeking USD 28,100 in “dommages matériels” (which are damages for alleged economic loss), as well as additional amounts in “dommages moraux” (which are damages for alleged non-economic loss, including alleged psychological suffering and moral anguish).
On May 22, 2023, a favorable First Instance judgment was issued for Banistmo. The plaintiff filed an appeal against the decision. On October 23, 2024, the Second Instance Court issued a favorable judgment to Banistmo. As of September 30, 2025, there is still pending to decide the appeal filed by the plaintiff before the Supreme Court of Guinea.
The contingency is qualified as remote and there is provision for this proceeding.
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Interfast Panamá & Pacific Point 96624
In February 2024, Banistmo and Banistmo Investment were served of a lawsuit filed against them and against 2020 Debt Investors Corp and José Talgham Cohen. The plaintiffs seek compensation for damages originated from the assignment of credit agreement made by Banistmo as the assignor in benefit of the assignee 2020 Debt Investors Corp., of a credit operation managed by Inverfast Panamá for a value of USD 2,000. The loan was secured with a trust of administration and guarantee of real state set up on Banistmo Investment.
The plaintiffs alleges that the credit assignment agreement presented irregularities and deviations from Banistmo and breach of fiduciary duties from Banistmo Investment. The plaintiff’s claims amount are USD 15,000.
As of September 30, 2025, the proceeding is pending rule a clarification motion of the plaintiff´s complaint.
The contingency is qualified as remote and there is no provision for this matter.
BANCO AGRÍCOLA
Dirección General de Impuestos Internos El Salvador
The authority on taxes of El Salvador (DGII), in accordance with the resolution of October 2018, determined that Banco Agrícola failed to declare and pay income taxes related to 2014’s fiscal year for a total of USD 11,116 and related penalties.
In 2021, the appeal presented by Banco Agrícola was decided. The Tribunal de Apelaciones de los Impuestos Internos y Aduanas (TAII) modified the Resolution issued by DGII, adjusted the rental tax to USD 6,341 and revoked the sanction.
Banco Agrícola filed a lawsuit before the Contentious Administrative Tribunal seeking to overrule DGII´s and TAII´s previous decisions in relation to the tax’s payment. As of September 30, 2025, the decision of the Contentious Administrative Tribunal is still pending.
The contingency is qualified as remote and there is no provision for this proceeding.
ARRENDADORA FINANCIERA S.A.
Cordal
Cordal filed a lawsuit against Arrendadora Financiera, seeking compensation for USD 6,454. According to the lawsuit, Cordal was the owner of a current account in Arrendadora Financiera (formerly Banco Capital S.A.), and it alleged that it´s funds were irregularly transferred to third parties. Arrendadora Financiera alleges Cordal´s account was liquidated before the acquisition of Banco Capital S.A. and, therefore, no funds were transferred.
As of September 30, 2025, the proceeding is at the evidentiary stage. The contingency is qualified as remote and there is no provision for this proceeding. A former employee of the plaintiff was convicted of aggravated theft in connection with the facts of this lawsuit.
BANCO AGROMERCANTIL
Bapa Holdings Corp.
On September 20, 2022, a lawsuit against Banco Agromercantil was filed by Bapa Holdings Corp. The plaintiff alleges that it invested USD 7,000, through a participation agreement with North Shore Development Company (NDSC) for the development of a housing project that was going to be built in a property, which was security for a loan given by Banco Agromercantil to NDSC, located in Roatan Island, Honduras. Bapa alleges that BAM caused damages due to its failure to provide information about NDSC´s financial situation and going through with the sale of the credit.
On October 24, 2022, BAM responded to the claim and filed exceptions alleging that it has no commercial relationship with Bapa, and the statute of limitations deadline expired. As of September 30, 2025, the Court has not ruled the exceptions to the lawsuit. The contingency is qualified as remote and there is no provision for this proceeding.
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Superintendencia de Administración Tributaria (SAT)
The Superintendencia de Administración Tributaria (SAT) de Guatemala ordered a tax adjustment in the fiscal year 2014 of Banco Agromercantil´s rental tax declaration, duly paid by BAM, for a value of USD 13,583 (including tax and sanction). BAM initiated legal proceedings against the decision adopted by the SAT, arguing the inadmissibility of the adjustment by applying the legal rule in an analogous way, the admissibility of the expense’s deductions of the revenue tax for being necessary to generate lien revenue and the non-withhold of the revenue tax in the interests paid to exempt people, arguing that they were appropriate according to the law. As of September 30, 2025, the proceeding is pending the final decision from the Court.
The contingency is qualified as remote and there is no provision for this proceeding.
NOTE 13. OTHER LIABILITIES
Other liabilities consist of the following:
| Other liabilities | September 30, 2025 | December 31, 2024 |
|---|---|---|
| In millions of COP | ||
| Payables | 3,146,730 | 3,547,341 |
| Suppliers | 1,621,866 | 1,840,622 |
| Advances to obligations | 1,458,713 | 1,373,401 |
| Deposits delivered as security(1) | 699,130 | 378,767 |
| Bonuses and short-term benefits | 675,108 | 676,967 |
| Salaries and other labor obligations(2) | 617,481 | 428,077 |
| Security contributions | 531,418 | 559,038 |
| Collection services | 419,560 | 480,202 |
| Provisions | 408,681 | 439,095 |
| Advances in leasing operations and loans | 156,779 | 173,168 |
| Deferred interests | 66,613 | 106,058 |
| Liabilities from contracts with customers | 58,447 | 68,040 |
| Other financial liabilities | 53,694 | 46,187 |
| Dividends(3) | 25,450 | 873,598 |
| Total | 9,939,670 | 10,990,561 |
(1)The increase in international counterparties for derivative transactions.
(2)Increase explained by the accrual of social benefits.
(3)Dividends payable corresponding to the distribution of profits. As of December 2024, these corresponded to the last aliquot of the dividends declared on the 2023 profits, which were paid in January 2025. The dividends declared in March 2025 were paid on April 1, for COP 3,751,125. Likewise, an extraordinary dividend payment was made on April 29, 2025, for COP 600,180. See Condensed Consolidated Interim Statement of Changes in Equity, distribution of dividends.
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NOTE 14. SHARE CAPITAL
The subscribed and paid-in capital is the following:
| Share capital | September 30, 2025 | December 31, 2024 |
|---|---|---|
| Authorized shares | 1,400,000,000 | 1,400,000,000 |
| Subscribed and paid-in shares: | ||
| Ordinary shares with a nominal value of COP 500 pesos | 509,704,584 | 509,704,584 |
| Preferred shares with dividend without voting rights with nominal value of COP 500 pesos | 452,122,416 | 452,122,416 |
| Total subscribed and paid-in shares | 961,827,000 | 961,827,000 |
| Subscribed and paid capital (nominal value, in millions of COP) | 480,914 | 480,914 |
Dividends declared
The declaration, amount and payment of dividends are based on Bancolombia S.A.’s unconsolidated net income. Dividends must be approved at the ordinary general shareholders' meeting upon the recommendation of the Board of Directors. Under the Colombian Commercial Code, after payment of income taxes and appropriation of legal and other reserves, and after setting off losses from prior fiscal years, Bancolombia must distribute to its stockholders at least 50% of its annual net income or 70% of its annual net income if the total amount of reserves exceeds its outstanding capital, unless such minimum percentages are waived by an affirmative vote of the holders of at least 78% of the shares present at the stockholders’ meeting. Such dividend distribution must be made to all stockholders, in cash or in issued stock of Bancolombia, as may be determined by the stockholders, and within a year from the date of the annual general ordinary stockholders' meeting in which the dividend was declared.
The payment of dividends must be made in cash during the year following the applicable date for the annual general ordinary stockholders' meeting. If the payment is made in the Bank’s own equity securities instead of cash, that must be approved by 80% of the outstanding common shareholders and 80% of the outstanding preferred shares.
The annual net profits of Bancolombia must be applied as follows: (i) first, an amount equal to 10% of Bancolombia’s net profits to a legal reserve until such reserve is equal to at least 50% of the Bank’s paid-in capital; (ii) second, to the payment of the minimum dividend on the preferred shares; and (iii) third, as may be determined in the ordinary annual general ordinary stockholders' meeting by the vote of the holders of a majority of the shares entitled to vote.
| Dividends declared with respect to<br><br>net income earned in: | Cash dividends per share<br><br>(Stated in COP) |
|---|---|
| 2024 | 4,524 |
| 2023 | 3,536 |
| 2022 | 3,536 |
| 2021 | 3,120 |
| 2020 | 260 |
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Common shares
The holders of common shares are entitled to vote on any matter subject to approval at an annual general ordinary stockholders' meeting. Within 15 calendar days prior to such meeting, such holders are entitled to inspect the books and records of the Company.
Also, the holders of common shares will receive a proportion of the profits subject to the provisions of law, statutes and established at general shareholders’ meeting. The dividend received by holders of common shares may not be higher than the dividend assigned to preferred shares.
Preferred shares
Holders of preferred shares are entitled to receive dividends based on the net profits of the preceding fiscal year, after deducting losses affecting the capital and once the amount that shall be legally set apart for the legal reserve has been deducted, but before creating or accruing for any other reserve, of a non-cumulative minimum preferred dividend equal to one percent (1%) yearly of the subscription price of the preferred share, provided this dividend is higher than the dividend assigned to common shares. If this is not the case, the dividend shall be increased to an amount that is equal to the per share dividend on the common shares.
Payment of the preferred dividend shall be made at the time and in the manner established in the general shareholders’ meeting and with the priority indicated by Colombian law.
Any dividend in shares requires the approval of 80% or more of the shares present at a shareholders’ meeting, which will include 80% or more of the outstanding preferred shares. In the event of absence of such holders of preferred shares, a stock dividend only has can be payable to the holders of common shares that approve this payment.
Reserved Shares
Stocks that are available between maximum authorized shares and paid-in shares. The Bank has not reserved shares.
Repurchased Own Shares
On June 9, 2025, the General Assembly approved a repurchase program for shares and ADRs. During the period, the entity repurchased its own shares (common and preferred), which are presented as a deduction from equity in the Statement of Financial Position, in accordance with IAS 32. These shares do not confer political or economic rights while held by the entity. For more information, see Note 15 – Appropriated Reserves and Condensed Consolidated Interim Statement of Changes in Equity.
| Concept | September 30, 2025 | December 31, 2024 |
|---|---|---|
| Subscribed and paid common shares | 509,704,584 | 509,704,584 |
| Repurchased common shares(1) | (578,737) | – |
| Total common shares outstanding | 509,125,847 | 509,704,584 |
| Subscribed and paid preferred shares | 452,122,416 | 452,122,416 |
| Repurchased preferred shares(2) | (6,673,457) | – |
| Total preferred shares outstanding | 445,448,959 | 452,122,416 |
| Total shares outstanding | 954,574,806 | 961,827,000 |
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(1) The total cost of the repurchased common shares is COP 33,353.
(2) The total cost of the repurchased preferred shares is COP 327,277.
NOTE 15. APPROPRIATED RESERVES
As of September 30, 2025 and December 31, 2024 the appropriated retained earnings consist of the following:
| Concept | September 30, 2025 | December 31, 2024 |
|---|---|---|
| In millions of COP | ||
| Appropriation of net income(1)(2) | 11,486,179 | 12,700,961 |
| Others(3) | 11,023,537 | 9,874,876 |
| For share repurchase(4) | 989,370 | – |
| Total appropriated reserves | 23,499,086 | 22,575,837 |
(1)The legal reserve fulfills two objectives: to increase and maintain the company's capital and to absorb economic losses. Based on the aforementioned, this amount shall not be distributed in dividends to the stockholders.
(2)As of September 30, 2025 and December 31, 2024, includes reclassification of unclaimed dividends under Article 85 bylaws for COP 1,960 and COP 506, respectively.
(3)The creation of an occasional reserve for equity strengthening and future growth continues which was approved at the General Shareholders Meeting. In addition, a reserve of COP 34,000 has been created for donations to social benefit projects, available to the Board of Directors, as approved by the General Shareholders' Meeting.
(4)The movement of the reserve for share repurchase is as follows:
| Concept | September 30, 2025 |
|---|---|
| In millions of COP | |
| Establishment of reserve for share repurchase(1) | 1,350,000 |
| Repurchase of common shares(2) | 33,353 |
| Repurchase of preferred shares(3) | 327,277 |
| Balance of reserves for share repurchase | 989,370 |
(1) On June 9, 2025, the General Assembly approved a repurchase program for shares and ADRs and approved a change in the legal reserve and the creation of a reserve for the repurchase of shares. For more information, see Note 1. Reporting Entity and Condensed Consolidated Interim Statement of Changes in Equity.
(2) As of September 30, 2025, 578,737 common shares have been repurchased.
(3) As of September 30, 2025, 6,673,457 preferred shares have been repurchased.
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NOTE 16. OPERATING INCOME
16.1. Interest and valuation on financial instruments
The following table sets forth the detail of interest and valuation on financial asset instruments for the nine-months period ended September 30, 2025 and 2024 and the three-months period from July 01 to September 30, 2025 and 2024:
| Accumulated | Quarterly | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| In millions of COP | ||||
| Interest on debt instruments using the effective interest method | 711,940 | 734,322 | 240,099 | 236,410 |
| Interest and valuation on financial instruments | ||||
| Debt investments(1) | 1,522,073 | 1,145,725 | 680,898 | 562,625 |
| Spot transactions | 34,075 | (5,530) | (4,122) | 15,924 |
| Repos(2) | (52,871) | 191,169 | (24,777) | 31,985 |
| Derivatives(3) | (188,496) | (95,004) | (136,193) | (82,730) |
| Total valuation on financial instruments | 1,314,781 | 1,236,360 | 515,806 | 527,804 |
| Total Interest and valuation on financial instruments | 2,026,721 | 1,970,682 | 755,905 | 764,214 |
(1) Net growth mainly in Bancolombia due to higher valuation of investments in fixed-rate TES in local currency and lower valuation of investments in foreign currency. (2) The decrease is mainly in Bancolombia S.A due to lower returns on simultaneous operations.
(3) The decrease is mainly in Bancolombia S.A explained by losses in the valuation of futures and swaps.
16.2. Interest expenses
The following table sets forth the detail of interest on financial liability instruments for the nine-months period ended September 30, 2025 and 2024 and the three-months period from July 01 to September 30, 2025 and 2024:
| Accumulated | Quarterly | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| In millions of COP | ||||
| Deposits(1) | 8,516,968 | 9,250,196 | 2,824,370 | 3,014,675 |
| Borrowing costs(1)(2) | 744,908 | 1,042,095 | 226,888 | 307,744 |
| Debt instruments in issue(3) | 618,848 | 912,742 | 202,853 | 317,223 |
| Lease liabilities | 83,634 | 102,433 | 28,175 | 33,710 |
| Preferred shares | 42,425 | 42,975 | 13,775 | 14,325 |
| Overnight funds | 23,310 | 16,111 | 8,839 | 6,099 |
| Other interest (expense) | 26,288 | 31,931 | 9,013 | 8,742 |
| Total interest expenses | 10,056,381 | 11,398,483 | 3,313,913 | 3,702,518 |
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(1)The intervention rate issued by the Banco de la República de Colombia for the period of 2025 it started at 9.50% and closed at 9.25% and for 2024 it started at 13.00% and closed at 10.75%. This has an impact on the rates of deposits and financial obligations.
(2)The decrease is mainly in Bancolombia S.A due to the effect of the decline in the balance of foreign obligations loans.
(3)In 2025, the decrease occurs mainly due to maturities of debt securities in legal currency.
Net interest income is defined as interest on loan portfolio and financial leasing operations, interest on debt instruments measured by the effective interest method and interest expense amounts to COP 14,138,715 and COP 14,087,264 for the accumulated period of nine months ended on June 30, 2025 and 2024, respectively and to COP 4,740,219 and COP 4,577,334 for the three-months period between July 1 and on September 30, 2025 and 2024, respectively.
16.3. Fees and commissions
Grupo Cibest Consolidated has elected to present the income from contracts with customers as an element in a line named “Fees and commissions income” in the condensed consolidated interim statement of income, separate from the other income sources.
The information contained in this section about the fees and commission’s income presents information on the nature, amount, timing and uncertainty of the income from ordinary activities which arise from a contract with a customer under the regulatory framework of IFRS 15 Revenue from Ordinary activities from Contracts with Customers.
In the following table, the description of the main activities through which the Grupo Cibest Consolidated generates revenue from contracts with customers is presented:
| Fees and Commissions | Description |
|---|---|
| Banking services | Banking Services are related to commissions from the use of digital physical channels or once the customer makes a transaction. The performance obligation is fulfilled once the payment is delivered to its beneficiary and the proof of receipt of the payment is sent, in that moment, the collection of the commission charged to the customer is generated, which is a fixed amount. The commitment is satisfied during the entire validity of the contract with the customer. The Bank acts as principal. |
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| Credit and debit card fees | In debit card product contracts, it is identified that the price assigned to the services promised by the Bank to the customers is fixed. Given that no financing component exists, it is established on the basis of the national and international interbank rate. Additionally, the product charges to the customers commissions for handling fees, at a determined time and with a fixed rate.<br><br>For Credit Cards, the commissions are the handling fees and depend on the card franchise. The commitment is satisfied in so far that the customer has capacity available on the card.<br><br>Other revenue received by the (issuer) credit card product, is advance commission; this revenue is the charge generated each time the customer makes a national or international advance, at owned or non-owned ATMs, or through a physical branch. The exchange bank fee is a revenue for the Issuing Bank of the credit card for the services provided to the business for the transaction effected at the point of sale. The commission is accrued and collected immediately at the establishment and has a fixed amount.<br><br>In the credit cards product there is a customer loyalty program, in which points are awarded for each transaction made by the customer in a retail establishment. The program is administrated by a third party who assumes the inventory and claims risks, for which it acts as agent. The Bank, recognized it as a lower value of the revenue from the exchange bank fee.<br><br>The rights and obligations of each party in respect of the goods and services for transfer are clearly identified, the payment terms are explicit, and it is probable, that is, it takes into consideration the capacity of the customer and the intention of having to pay the consideration at termination to those entitled to change the transferred goods or services. The revenue is recognized at a point in time: the Bank satisfies the performance obligation when the “control” of the goods or services was transferred to the customers. |
|---|---|
| Deposits | Deposits are related to the services generated from the offices network of the Bank once a customer makes a transaction. The Bank generally commits to maintain active channels for the products that the customer has with the Bank, with the purpose of making payments and transfers, sending statements and making transactions in general. The commissions are deducted from the deposit account, and they are incurred at a point in time. The Bank acts as principal. |
| Electronic services and ATMs | Revenue received from electronic services and ATMs arises through the provision of services so that the customers may make required transactions, and which are enabled by the Bank. These include online and real-time payments by the customers of the Bank holding a checking or savings accounts, with a debit or credit card for the products and services that the customer offers. Each transaction has a single price, for a single service. The provision of collection services or other different services provided by the Bank, through electronic equipment, generates consideration chargeable to the customer established contractually by the Bank as a fee. The Bank acts as principal and the revenue is recognized at a point in time. |
| Brokerage | Brokerage is a group of services for the negotiation and administration of operations for purchasing fixed revenue securities, equities and operations with derivatives in its own name, but on the account of others. The performance obligations are fulfilled at a point in time when the commission agent in making its best effort can execute the business entrusted by the customer in the best conditions. The performance obligations are considered satisfied once the service stipulated in the contract is fulfilled, as consideration fixed, or variable payments are agreed, depending on the service. The Bank acts generally as principle and in some special cases as agent. |
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| Remittance | Revenue for remittance is received as consideration for the commitment established by the Bank to pay remittances sent by the remitting companies to the beneficiaries of the same. The commitment is satisfied at a point in time to the extent that the remittance is paid to the beneficiary.<br><br>The price is fixed, but may vary in accordance to the transferred amount, due to the operation being dependent on the volume of operations generated and the transaction type. There is no component of financing, nor the right to receive consideration dependent on the occurrence or not of a future event. |
|---|---|
| Acceptances, Guarantees and Standby Letters of Credit | Banking Service from acceptances, guarantees and standby letters of credit which are not part of the portfolio of the Bank. There exist different performance obligations; the satisfaction of performance obligations occurs when the service is given to the customer. The consideration in these types of contracts may include fixed amounts, variable amounts, or both, and the Bank acts as principal. The revenue is recognized at a point in time. |
| Trust | Revenue related to Trust are received from the administration of the customer resources in the business of investment trusts, property trusts, management trusts, guarantee trusts, for the resources of the general social security system, Collective portfolios and Private Equity Funds (PEF). The commitments are established in contracts independently and in an explicit manner, and the services provided by the Bank are not inter-related between the contracts. The performance obligation corresponds to performing the best management in terms of the services to be provided in relation to trust characteristics, thus fixed and variable prices are established depending on the complexity of the business, similarly, revenues are recognized throughout or at a determined time. In all the established businesses it acts as principal. |
| Placement of Securities | Valores Bancolombia makes available its commercial strength for the deposit, reinvestment of resources through financial instruments to the issuing company. It receives a payment for deposits made. The commitment of the contract is satisfied to the extent that the resources requested by the issuer are obtained through the distribution desks of Valores Bancolombia. The collection is made monthly. It is established that Valores Bancolombia may undertake collection of these commissions at the end of the month through a collection account charged to the issuer, acting as principal. |
| Bancassurance | The bank receives a commission for collecting insurance premiums at a given time and for allowing the use of its network to sell insurance from different insurance companies over time. The Bank in these bancassurance contracts acts as agent (intermediary between the customer and the insurance company), since it is the insurance company which assumes the risks, and which handles the complaints and claims of the customers inherent in each insurance. Therefore, the insurance company acts as principal before the customer. The prices agreed in bancassurance are defined as a percentage on the value of the policy premiums. The payment shall be tied to the premiums collected, sold or taken for the case of employees’ insurance. The aforementioned then means that the price is variable, since, the revenue will depend on the quantity of policies or calculations made by the insurance companies. |
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| Collections | The Bank acting as principal, commits to collect outstanding invoices receivable by the collecting customers through the different channels offered by the bank, send the information of the collections made and credit the money to the savings or checking account defined by the collecting customer. The commitment is satisfied at a point in time to the extent that the money is collected by the different channels, the information of the said collections is delivered appropriately, and the resources are credited in real-time to the account agreed with the customer. For the service, the Bank receives a fixed payment, which is received for each transaction once the contract is in effect. |
|---|---|
| Services | These are the maintenance services performed on the fleet owned by the customers, these services are performed on demand, and the value of the service cost is invoiced plus an intermediation margin. The collection is made by the amount of expense invoiced by the provider plus an intermediation percentage, which ranges between 5% and 10% depending on the customer.<br><br>The contract is written, is based on a framework contract which is held between the customers which contains the general terms of negotiation and the payment terms are generally 30 days after generating the invoice. The revenue is recognized when the service is provided. There is no financing nor sanctions for early cancellations. To view the details of the balance, refer to line ‘Logistics services’ in Note 16.4 Other operational Income. |
| Gains on sale of assets | These are the revenue from the sale of assets, where the sale value is higher than the book value recorded in the accounts, the difference representing the gains. The recognition of the revenue is at a point in time once the sale is realized. The Bank acts as principal in this type of transaction and the transaction price is determined by the market value of the asset being sold.<br><br>To view the details of the balance, refer to line ‘Gain on sale of assets’ in Note 15.4 Other operational Income. |
| Investment Banking | Investment Banking offers to customer’s financial advisory services in the structuring of businesses in accordance with the needs of each one of them. The advisory services consist in realizing a financial structuring of a credit or bond in which the Investment Bank offers the elements so that the company decides the best option for structuring the instrument. In the financial advisory contract, a best efforts clause is included.<br><br>The promises given to the customers are established in the contracts independently and explicitly. The services provided by the Investment Bank are not interrelated between the contracts, correspond to the independent advice agreed and do not include additional services in the commission agreed with the customer. The advisory services offered in each one of the contracts are identifiable separately from the other performance commitments that the Investment Bank may have with the customers. The Investment Bank does not have a standard contract for the provision of advisory services, given than each contract is tailored to the customer’s needs.<br><br>The transaction price is defined at the start of the contract and is assigned to each service provided independently. The price contains a fixed and a variable portion which is provided in the contracts. The variation depends on the placement amount for the case of a financial structuring contract and coordination of the issuance and conditions of the same. In these operations Banca de Inversion Bancolombia provides advice to the customers and the price shall depend at times on the success and amount of the operation. In the contracts subject to evaluation there are no incremental costs associated with the satisfaction of the commitments of the Bank with the customers provided for.<br><br>In the contracts signed with the customers, a penalty clause is established in case of a customer withdrawing from continuing with the provision of the services established in the commercial offer. The penalty shall be recognized in the financial statements once the Investment Bank is notified on the withdrawal under the concept of charges for early termination of the contract. |
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Grupo Cibest Consolidated presents the information on revenue from contracts with customers in accordance with its operating segments defined earlier in Note 3. Operating Segments for each of the principal services offered.
The following table shows the balances categorized by nature and by segment of revenue from ordinary activities from contracts with customers, for further information about composition of Grupo Cibest Consolidated segments see Note 3. Operating segments:
As of September 30, 2025
| Banking<br><br>Colombia | Banking<br><br>Panama | Banking El<br><br>Salvador | Banking<br><br>Guatemala | Trust | Investment<br><br>Banking | Brokerage | International<br><br>Banking | All Other<br><br>Segments | Total | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue from contracts with customers | In millions of COP | |||||||||
| Fees and Commissions income | ||||||||||
| Credit and debit card fees and commercial establishments | 2,061,341 | 192,236 | 234,694 | 72,951 | – | – | – | 1,423 | – | 2,562,645 |
| Banking services | 549,692 | 86,288 | 136,078 | 46,720 | – | – | – | 36,403 | 43,659 | 898,840 |
| Payment and collections | 828,840 | 5,840 | – | – | – | – | – | – | – | 834,680 |
| Bancassurance | 725,505 | 48,299 | 11 | – | – | – | – | – | – | 773,815 |
| Fiduciary Activities and Securities | – | 14,854 | 6,535 | 668 | 378,992 | – | 83,484 | 38 | – | 484,571 |
| Acceptances, Guarantees and Standby Letters of Credit | 52,177 | 21,924 | 4,039 | 1,035 | – | – | – | 324 | – | 79,499 |
| Investment banking | – | 1,463 | 2,969 | – | – | 51,449 | 5,058 | – | – | 60,939 |
| Brokerage | – | 13,368 | – | – | – | – | 18,191 | – | – | 31,559 |
| Others | 211,278 | 208 | 67,082 | 46,876 | 256 | – | 9,385 | 4,215 | 2,540 | 341,840 |
| Total revenue of contracts with customers | 4,428,833 | 384,480 | 451,408 | 168,250 | 379,248 | 51,449 | 116,118 | 42,403 | 46,199 | 6,068,388 |
For the three-months period from July 1, 2025 to September 30, 2025
| Banking<br><br>Colombia | Banking<br><br>Panama | Banking El<br><br>Salvador | Banking<br><br>Guatemala | Trust | Investment<br><br>Banking | Brokerage | International<br><br>Banking | All Other<br><br>Segments | Total | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue from contracts with customers | In millions of COP | |||||||||
| Fees and Commissions income | ||||||||||
| Credit and debit card fees and commercial establishments | 699,459 | 64,292 | 79,578 | 29,520 | – | – | – | 433 | – | 873,282 |
| Banking services | 182,417 | 31,960 | 46,181 | 15,082 | – | – | – | 11,566 | 16,393 | 303,599 |
| Payment and collections | 292,190 | 1,390 | – | – | – | – | – | – | – | 293,580 |
| Bancassurance | 257,026 | 15,937 | 3 | – | – | – | – | – | – | 272,966 |
| Fiduciary Activities and Securities | – | 5,036 | 2,535 | 217 | 130,341 | – | 28,522 | 12 | – | 166,663 |
| Acceptances, Guarantees and Standby Letters of Credit | 16,660 | 7,176 | 1,190 | 338 | – | – | – | 105 | – | 25,469 |
| Investment banking | – | 411 | 1,567 | – | – | 33,934 | 2,650 | – | – | 38,562 |
| Brokerage | – | 4,167 | – | – | – | – | 6,229 | – | – | 10,396 |
| Others | 76,804 | 84 | 23,080 | 16,609 | 256 | – | 3,864 | 1,142 | 847 | 122,686 |
| Total revenue of contracts with customers | 1,524,556 | 130,453 | 154,134 | 61,766 | 130,597 | 33,934 | 41,265 | 13,258 | 17,240 | 2,107,203 |
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As of September 30, 2024
| Banking<br><br>Colombia | Banking<br><br>Panama | Banking El<br><br>Salvador | Banking<br><br>Guatemala | Trust | Investment<br><br>Banking | Brokerage | International<br><br>Banking | All Other<br><br>Segments | Total | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue from contracts with customers | In millions of COP | |||||||||
| Fees and Commissions income | ||||||||||
| Credit and debit card fees and commercial establishments | 1,955,541 | 203,922 | 179,981 | 65,662 | – | – | – | 1,432 | – | 2,406,538 |
| Banking services | 502,982 | 103,445 | 120,773 | 46,533 | – | – | – | 32,154 | 23,613 | 829,500 |
| Payment and collections | 762,920 | 12,031 | – | – | – | – | – | – | – | 774,951 |
| Bancassurance | 658,550 | 48,320 | 38 | – | 6 | – | 3 | – | – | 706,917 |
| Fiduciary Activities and Securities | – | 14,482 | 4,671 | 678 | 328,326 | – | 69,096 | 37 | – | 417,290 |
| Acceptances, Guarantees and Standby Letters of Credit | 53,942 | 21,047 | 4,415 | 1,426 | – | – | – | 424 | – | 81,254 |
| Investment banking | – | 1,339 | 1,558 | – | – | 59,109 | 6,826 | – | – | 68,832 |
| Brokerage | – | 10,453 | – | – | – | – | 16,288 | – | – | 26,741 |
| Others | 183,943 | 259 | 54,923 | 41,760 | – | – | 4,825 | 4,089 | 895 | 290,694 |
| Total revenue of contracts with customers | 4,117,878 | 415,298 | 366,359 | 156,059 | 328,332 | 59,109 | 97,038 | 38,136 | 24,508 | 5,602,717 |
For the three-months period from July 1, 2024 to September 30, 2024
| Banking<br><br>Colombia | Banking<br><br>Panama | Banking El<br><br>Salvador | Banking<br><br>Guatemala | Trust | Investment<br><br>Banking | Brokerage | International<br><br>Banking | All Other<br><br>Segments | Total | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue from contracts with customers | In millions of COP | |||||||||
| Fees and Commissions income | ||||||||||
| Credit and debit card fees and commercial establishments | 660,091 | 76,211 | 65,551 | 22,524 | – | – | – | 498 | – | 824,875 |
| Banking services | 184,884 | 26,777 | 42,813 | 17,560 | – | – | – | 10,312 | 8,792 | 291,138 |
| Payment and collections | 263,106 | 6,423 | – | – | – | – | – | – | – | 269,529 |
| Bancassurance | 196,126 | 16,384 | 13 | – | 6 | – | 3 | – | – | 212,532 |
| Fiduciary Activities and Securities | – | 4,767 | 1,687 | 242 | 113,881 | – | 24,686 | 13 | – | 145,276 |
| Acceptances, Guarantees and Standby Letters of Credit | 16,871 | 6,934 | 1,734 | 226 | – | – | – | 114 | – | 25,879 |
| Investment banking | – | 256 | 630 | – | – | 18,485 | 2,392 | – | – | 21,763 |
| Brokerage | – | 2,374 | – | – | – | – | 3,680 | 1 | – | 6,055 |
| Others | 65,769 | 81 | 19,799 | 16,228 | – | – | 2,041 | 1,432 | 382 | 105,732 |
| Total revenue of contracts with customers | 1,386,847 | 140,207 | 132,227 | 56,780 | 113,887 | 18,485 | 32,802 | 12,370 | 9,174 | 1,902,779 |
For the determination of the transaction price, the Bank assigns to each one of the services the amount which represents the value expected to be received as consideration for each independent commitment, which is based on the relative price of independent sale. The price that Grupo Cibest Consolidated determines for each performance obligation is done by defining the cost of each service, related tax and associated risks to the operation and inherent to the transaction plus the margin expected to be received in each one of the services, taking as references the market prices and conditions, as well as the segmentation of the customer.
In the transactions evaluated in the contracts, changes in the price of the transaction are not identified.
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Contract assets with customers
Grupo Cibest Consolidated receives payments from customers based on the provision of the service, in accordance to that established in the contracts. When the Grupo Cibest Consolidated incurs costs for providing the service prior to the invoicing, and if these are directly related with a contract, they improve the resources of the entity and are expected to recuperate, these costs correspond to a contract asset. Currently, the Group does not have assets related to contracts with customers.
As a practical expedient, the Grupo Cibest Consolidated recognizes the incremental costs of obtaining a contract as an expense when the amortization period of the asset is one year or less.
Contract liabilities with customers
The contract liabilities constitute the obligation of Grupo Cibest Consolidated to transfer the services to a customer, for which the Group has received a payment on the part of the final customer or if the amount is due before the execution of the contract. They also include deferred income related to services that shall be delivered or provided in the future, which will be invoiced to the customer in advance, but which are still not due.
Fees and Commissions Expenses
The following table sets forth the detail of commissions expenses for the nine-months period ended September 30, 2025 and 2024 and the three-months period from July 01 to September 30, 2025 and 2024:
| Accumulated | Quarterly | |||
|---|---|---|---|---|
| Fees and Commissions Expenses | 2025 | 2024 | 2025 | 2024 |
| In millions of COP | ||||
| Banking services(1) | 1,425,838 | 1,209,031 | 490,948 | 420,921 |
| Sales, collections and other services | 671,591 | 647,361 | 221,288 | 211,122 |
| Correspondent banking | 470,028 | 452,205 | 158,294 | 155,757 |
| Payments and collections | 50,072 | 32,275 | 24,499 | 12,167 |
| Others | 204,277 | 168,637 | 75,240 | 64,468 |
| Total expenses for commissions | 2,821,806 | 2,509,509 | 970,269 | 864,435 |
(1) Primarily due to higher fees paid to credit card franchises resulting from increased transaction volumes.
16.4. Other operating income
The following table sets forth the detail of other operating income net for the nine-months period ended September 30, 2025 and 2024 and the three-months period from July 01 to September 30, 2025 and 2024:
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| Accumulated | Quarterly | |||
|---|---|---|---|---|
| Other operating income | 2025 | 2024 | 2025 | 2024 |
| In millions of COP | ||||
| Leases and related services | 1,305,628 | 1,350,230 | 423,484 | 448,199 |
| Net foreign exchange and Derivatives Foreign exchange contracts(1) | 598,116 | 376,635 | 256,749 | 213,584 |
| Gains on sale of assets(2) | 155,700 | 61,640 | 48,609 | 28,645 |
| Investment property valuation(3) | 91,041 | 40,266 | 7,909 | (11,554) |
| Insurance(4) | 63,758 | 40,501 | 6,075 | 2,514 |
| Logistics services | 46,124 | 36,872 | 16,833 | 13,712 |
| Other reversals | 28,971 | 35,346 | 8,983 | 9,178 |
| Penalties for failure to contracts | 3,320 | 6,204 | 1,388 | 1,218 |
| Others(5) | 240,932 | 185,032 | 96,269 | 56,817 |
| Total Other operating income | 2,533,590 | 2,132,726 | 866,299 | 762,313 |
(1) Corresponds to the management of assets and liabilities in foreign currencies and the volatility of the U.S. dollar.
(2) Corresponds mainly to higher gains on assets held for sale, mostly vehicles.
(3) In 2025, the increase occurs due to the indexation of properties to the UVR and due to updating the appraisals of investment properties.
(4)Corresponds to income from insurance operations of Seguros Agromercantil S.A., subsidiary domiciled in Guatemala.
(5)Corresponds to income from valuation of Wenia LTDA., proprietary position in non-backed assets BTC, ETH, SOL.
16.5. Dividends and net income on equity investments
The following table sets forth the detail of dividends received, and share of profits of equity method investees for the nine-months period ended September 30, 2025 and 2024 and the three-months period from July 01 to September 30, 2025 and 2024:
| Accumulated | Quarterly | |||
|---|---|---|---|---|
| Dividends and net income on equity investments | 2025 | 2024 | 2025 | 2024 |
| In millions of COP | ||||
| Equity method(1) | 255,284 | 187,910 | 55,616 | 54,598 |
| Dividends(2) | 69,171 | 68,795 | 37,768 | 34,928 |
| Equity investments and other financial instruments(3) | 45,732 | (5,708) | 17,967 | 2,475 |
| Gains on sale of investments in associates and joint ventures(4) | 11,508 | - | 11,508 | - |
| Impairment of investments in associates and joint ventures(5) | - | (313,284) | - | - |
| Others(6) | - | 13,520 | 160 | - |
| Total dividends received, and share of profits of equity method investees | 381,695 | (48,767) | 123,019 | 92,001 |
(1)As of September 30, 2025 and 2024, corresponds to income from equity method of investments in associates for COP 233,582 and COP 255,232 (includes valuation of investments in associates at fair value), respectively, and joint ventures for COP 21,702 and COP (67,322), respectively.
(2)As of September 30, 2025 and 2024, includes dividends received from equity investments at fair value through profit or loss for COP 1,449 and COP 1,377 and investments derecognised for COP 1 in 2025; dividends from equity investments at fair value through OCI for COP 10,862 and COP 14,369, respectively, and investments derecognised
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for COP 538 in 2025, and dividends received of the associate at fair value P.A. Viva Malls for COP 56,321 and COP 53,049, respectively.
(3)The variation is explained in Bancolombia S.A. for COP 29,399, mainly in FCP Pactia Inmobiliario and Inversiones CFNS S.A.S. for COP 18,263 due to the devaluation of investments in Home Capital Colombia S.A.S. and Enka in the previous year.
(4)As of September 30, 2025, corresponds to gain on sale of the P.A. Laurel joint venture by Inversiones CFNS S.A.S.
(5)As of September 30, 2024, impairment of investments in joint ventures recognized in the Investment Banking segment for COP 156,205, in Bancolombia for COP 156,051 were recognized in Banking Colombia and in Negocios Digitales for COP 31 recognized in other segments.
(6)As of September 30, 2024, there is a -gain from the purchase in advantageous conditions of P.A. Cedis Sodimac for COP 13,520.
NOTE 17. OPERATING EXPENSES
17.1. Salaries and employee benefit
The details for salaries and employee benefits for the nine-months period ended September 30, 2025 and 2024 and the three-months period from July 01 to September 30, 2025 and 2024:
| Accumulated | Quarterly | |||
|---|---|---|---|---|
| Salaries and employee benefit | 2025 | 2024 | 2025 | 2024 |
| In millions of COP | ||||
| Salaries(1) | 2,025,272 | 1,827,290 | 666,008 | 615,336 |
| Bonuses(2) | 809,722 | 538,841 | 289,858 | 231,512 |
| Social security contributions | 492,127 | 460,488 | 153,263 | 146,185 |
| Private premium | 477,024 | 459,169 | 163,622 | 171,939 |
| Indemnization payment | 156,990 | 195,297 | 48,709 | 37,096 |
| Defined Benefit severance obligation and interest | 141,872 | 134,906 | 47,580 | 44,623 |
| Vacation expenses | 127,141 | 118,733 | 42,546 | 43,481 |
| Other benefits(3) | 424,695 | 360,171 | 137,579 | 121,376 |
| Total salaries and employee benefit | 4,654,843 | 4,094,895 | 1,549,165 | 1,411,548 |
(1)The growth is mainly explained by salary increases indexed to inflation
(2)Corresponds mainly to bonuses for employees in accordance with the variable compensation model of the Grupo Cibest Consolidated.
(3)Includes pension and employee benefits, mainly policy benefits, training and recreation.
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17.2. Other administrative and general expenses
The details for administrative and general expenses for the Nine-months period ended September 30, 2025 and 2024 and the three-months period from July 01 to September 30, 2025 and 2024:
| Accumulated | Quarterly | |||
|---|---|---|---|---|
| Other administrative and general expenses | 2025 | 2024 | 2025 | 2024 |
| In millions of COP | ||||
| Maintenance and repairs(1) | 827,013 | 719,113 | 278,812 | 252,042 |
| Fees(2) | 703,155 | 610,283 | 240,202 | 205,902 |
| Insurance | 585,981 | 544,626 | 199,279 | 184,029 |
| Data processing(3) | 484,040 | 387,682 | 161,472 | 134,736 |
| Frauds and claims | 259,238 | 307,570 | 91,935 | 132,605 |
| Transport | 197,123 | 180,794 | 65,106 | 56,839 |
| Advertising | 132,934 | 106,258 | 47,246 | 38,582 |
| Cleaning and security services | 106,406 | 98,858 | 36,563 | 33,764 |
| Contributions and affiliations | 100,150 | 89,590 | 32,795 | 29,269 |
| Public services | 97,212 | 98,100 | 33,053 | 33,947 |
| Useful and stationery | 75,319 | 73,413 | 27,492 | 18,391 |
| Communications | 60,026 | 56,791 | 19,828 | 19,729 |
| Properties improvements and installation | 51,443 | 41,488 | 20,572 | 16,453 |
| Real estate management | 41,909 | 28,380 | 20,701 | 9,648 |
| Travel expenses | 27,672 | 21,373 | 10,180 | 8,188 |
| Disputes, fines and sanctions | 21,544 | 30,842 | 6,779 | 7,987 |
| Publications and subscriptions | 20,386 | 17,127 | 7,059 | 5,179 |
| Storage services | 13,741 | 13,527 | 4,672 | 4,904 |
| Legal expenses | 12,920 | 8,519 | 3,409 | 2,803 |
| Others | 387,002 | 378,773 | 101,969 | 125,345 |
| Total other administrative and general expenses | 4,205,214 | 3,813,107 | 1,409,124 | 1,320,342 |
| Taxes other than income tax | 1,122,576 | 1,125,119 | 376,173 | 344,293 |
(1)The increase is mainly due to maintenance of computer equipment at Bancolombia S.A..
(2)Increase mainly due to fees related to digital transformation.
(3)The increase is mainly explained by license maintenance and technology services..
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17.3. Impairment, depreciation and amortization
The details for Impairment, depreciation and amortization for the nine-months period ended September 30, 2025 and 2024 and the three-months period from July 01 to September 30, 2025 and 2024:
| Accumulated | Quarterly | |||
|---|---|---|---|---|
| Impairment, depreciation and amortization | 2025 | 2024 | 2025 | 2024 |
| In millions of COP | ||||
| Depreciation of premises and equipment | 477,569 | 481,461 | 160,944 | 155,542 |
| Depreciation of right-of-use assets | 156,533 | 152,346 | 47,920 | 52,972 |
| Amortization of intangible assets | 124,231 | 116,003 | 39,263 | 44,247 |
| Impairment of other assets, net(1) | 42,990 | 54,496 | 18,395 | 17,801 |
| Total impairment, depreciation and amortization | 801,323 | 804,306 | 266,522 | 270,562 |
(1)Includes value for impairment of property and equipment for COP 697 in 2025 and COP 369 in 2024.
NOTE 18. EARNING PER SHARE (‘EPS’)
Basic EPS is calculated by reducing the income from continuing operations by the amount of dividends declared in the current period for each class of stock and by the contractual amount of dividends that must be paid for the current period. The remaining income is allocated according to the participation of each class of stock as if all the earnings for the period had been distributed. EPS is determined by dividing the total earnings allocated to each security by the weighted average number of common shares outstanding. The weighted average number of ordinary shares outstanding during the period is the number of ordinary shares outstanding at the beginning of the period, adjusted by the number of ordinary shares bought back or issued during the period multiplied by a time-weighting factor.
Grupo Cibest S.A. had no dilutive potential common shares as of September 30, 2025 and 2024.
The following is the calculation of basic earnings per share for the nine-month periods ended September 30, 2025, and 2024, and for the three-month periods from July 1 to September 30, 2025, and 2024 (figures in millions of pesos, except for the weighted average number of common shares outstanding and earnings per share):
| Accumulated | Quarterly | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Income from continuing operations before attribution of non-controlling interests | 5,750,047 | 4,666,250 | 2,156,326 | 1,519,485 |
| Less: Non-controlling interests from continuing operations | 76,977 | 61,810 | 12,223 | 18,291 |
| Net income from controlling interest | 5,673,070 | 4,604,440 | 2,144,103 | 1,501,194 |
| Less: Preferred dividends declared | 1,487,080 | 1,156,054 | 496,060 | 385,351 |
| Less: Allocation of undistributed earnings to preferred stockholders | 1,153,256 | 985,564 | 503,039 | 312,718 |
| Net income allocated to common shareholders for basic and diluted EPS | 3,032,734 | 2,462,822 | 1,145,004 | 803,125 |
| Weighted average number of common shares outstanding used in basic EPS calculation(1) | 509,588,654 | 509,704,584 | 509,588,654 | 509,704,584 |
| Basic and diluted earnings per share to common shareholders | 5,951 | 4,832 | 2,247 | 1,576 |
| Basic and diluted earnings per share from continuing operations | 5,951 | 4,832 | 2,247 | 1,576 |
(1)As of July 2025, the Grupo Cibest S.A. has bought back 7,252,194 shares worth COP 360,630.
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NOTE 19. RELATED PARTY TRANSACTIONS
The parent company is Cibest S.A. and transactions between companies included in the consolidation process and the Parent company meet the definition of related party transactions and were eliminated from the Condensed Consolidated Interim Financial Statements.
The Bank offers banking and financial services to its related parties in order to meet their transactional needs for investment and liquidity in the ordinary course of business. These transactions are carried out in terms similar to those of transactions with third parties. In the case of treasury operations, Bancolombia operates between its own position and its related parties through transactional channels or systems established for this purpose and under the conditions established by current regulations.
The details of transactions with related parties as of December 31, 2024 are included in the annual report of the consolidated financial statements of 2024, On May 16, 2025, the change in the Group’s corporate structure was completed. For further information, see Note 1 – Reporting Entity. This transaction did not materially affect the Group’s financial position or results.
NOTE 20. LIABILITIES FROM FINANCING ACTIVITIES
The following table presents the reconciliation of the balances of liabilities from financing activities as of June 30, 2025 and 2024:
| Balance as of January 1, 2025 | Cash flows | Non-cash changes | Balance as of September 30, 2025 | |||||
|---|---|---|---|---|---|---|---|---|
| Foreign currency translation adjustment | Interests accrued | Other movements | ||||||
| In millions of COP | ||||||||
| Liabilities from financing activities | ||||||||
| Repurchase agreements and other similar secured borrowing | 1,060,472 | 2,185,576 | (71,457) | - | - | 3,174,591 | ||
| Borrowings from other financial institutions(1) | 15,689,532 | (3,764,882) | (1,016,376) | 744,908 | 196 | 11,653,378 | ||
| Debt instruments in issue(1) | 11,275,216 | 591,942 | (1,044,147) | 618,848 | - | 11,441,859 | ||
| Preferred shares(2) | 584,204 | (57,701) | - | 42,425 | - | 568,928 | ||
| Total liabilities from financing activities | 28,609,424 | (1,045,065) | (2,131,980) | 1,406,181 | 196 | 26,838,756 |
(1)The cash flows disclosed in this table related with Borrowings from other financial institutions and Debt securities in issue include the interests paid during the year amounting to COP 716,843 and COP 512,426, respectively, which are classified as cash flows from operating activities in the Condensed Consolidated Interim Statement of Cash Flow.
(2)The cash flow amounting to COP 57,701 corresponds to the fixed minimum dividend paid to the preferred shares' holders and is included in the line "dividends paid" of the Condensed Consolidated Interim Statement of Cash Flow, which includes the dividends paid during the year to both preferred and common shares holders.
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| Non-cash changes | ||||||
|---|---|---|---|---|---|---|
| Balance as of<br>January 1, 2024 | Cash flows | Foreign<br><br>currency<br><br>translation<br><br>adjustment | Interests<br><br>accrued | Other<br><br>movements | Balance as of September 30, 2024 | |
| In millions of COP | ||||||
| Liabilities from financing activities | ||||||
| Repurchase agreements and other similar secured borrowing | 470,295 | 2,346,677 | 29,974 | — | — | 2,846,946 |
| Borrowings from other financial institutions(1) | 15,648,606 | (4,990,244) | 1,233,919 | 1,042,095 | 770 | 12,935,146 |
| Debt instruments in issue(1) | 14,663,576 | (2,148,345) | 960,735 | 912,742 | - | 14,388,708 |
| Preferred shares(2) | 584,204 | (57,702) | - | 42,975 | - | 569,477 |
| Total liabilities from financing activities | 31,366,681 | (4,849,614) | 2,224,628 | 1,997,812 | 770 | 30,740,277 |
(1)The cash flows disclosed in this table related with Borrowings from other financial institutions and Debt securities in issue include the interests paid during the year amounting to COP 1,072,304 and COP 741,898, respectively, which are classified as cash flows from operating activities in the Condensed Consolidated Interim Statement of Cash Flow.
(2)The cash flow amounting to COP 57,702 corresponds to the fixed minimum dividend paid to the preferred shares' holders and is included in the line "dividends paid" of the Condensed Consolidated Interim Statement of Cash Flow, which includes the dividends paid during the year to both preferred and common shares holders.
NOTE 21. FAIR VALUE OF ASSETS AND LIABILITIES
The following table presents the carrying amount and the fair value of the assets and liabilities as of September 30, 2025 and December 31, 2024:
| Assets and Liabilities | Note | September 30, 2025 | December 31, 2024 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Carrying<br><br>amount | Fair<br><br>Value | Carrying<br><br>amount | Fair<br><br>Value | ||||||
| In millions of COP | |||||||||
| Assets | |||||||||
| Debt instruments at fair value through profit or loss | 5.1 | 24,918,497 | 24,918,497 | 23,035,281 | 23,035,281 | ||||
| Debt instruments at fair value through OCI | 5.1 | 4,808,018 | 4,808,018 | 5,084,416 | 5,084,416 | ||||
| Debt instruments at amortized cost | 5.1 | 8,527,273 | 8,573,339 | 8,404,878 | 8,403,740 | ||||
| Derivative financial instruments | 5.2 | 4,042,125 | 4,042,125 | 2,938,142 | 2,938,142 | ||||
| Equity securities at fair value | 5.1 | 1,421,677 | 1,421,677 | 1,011,310 | 1,011,310 | ||||
| Other financial instruments | 5.1 | 29,250 | 29,250 | 34,385 | 34,385 | ||||
| Loans and advances to customers at amortized cost, net | 6 | 265,602,434 | 273,362,653 | 263,274,170 | 269,345,583 | ||||
| Investment properties | 6,027,496 | 6,027,496 | 5,580,109 | 5,580,109 | |||||
| Investments in associates(1) | 1,956,262 | 1,956,262 | 1,830,884 | 1,830,884 | |||||
| Total | 317,333,032 | 325,139,317 | 311,193,575 | 317,263,850 | |||||
| Liabilities | |||||||||
| Deposits by customers | 9 | 281,259,655 | 281,298,778 | 279,059,401 | 279,463,012 | ||||
| Interbank deposits | 10 | 882,390 | 882,390 | 716,493 | 716,493 | ||||
| Repurchase agreements and other similar secured borrowing | 10 | 3,174,591 | 3,174,591 | 1,060,472 | 1,060,472 | ||||
| Derivative financial instruments | 5.2 | 4,760,502 | 4,760,502 | 2,679,643 | 2,679,643 | ||||
| Borrowings from other financial institutions | 11 | 11,653,378 | 11,653,378 | 15,689,532 | 15,689,532 | ||||
| Preferred shares | 568,928 | 375,404 | 584,204 | 407,174 | |||||
| Debt instruments in issue | 11,441,859 | 11,683,915 | 11,275,216 | 11,389,498 | |||||
| Total | 313,741,303 | 313,828,958 | 311,064,961 | 311,405,824 |
(1)It corresponds to investments in associates P.A. Viva Malls, P.A. Distrito Vera and Fideicomiso Locales Distrito Vera.
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Fair value hierarchy
IFRS 13 establishes a fair value hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable, that reflects the significance of inputs adopted in the measurement process. In accordance with IFRS, the financial instruments are classified as follows:
Level 1: Observable inputs that reflect quoted prices (unadjusted) in active markets for identical assets or liabilities. An active market is a market in which transactions for the asset or liability being measured take place with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. Level 2 generally includes: (i) quoted prices for similar assets or liabilities in active markets; (ii) quoted prices for identical or similar assets or liabilities in markets that are not active, that is, markets in which there are few transactions for the asset or liability.
Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category generally includes certain retained residual interests in securitizations, asset-backed securities (ABS) and highly structured or long-term derivative contracts where independent pricing information was not able to be obtained for a significant portion of the underlying assets.
Valuation process for fair value measurements
The valuation to fair value prices is performed using prices, methodologies and inputs provided by the official pricing services provider (Precia - Proveedor de Precios para Valoración S.A.) to the Group.
All methodologies and procedures developed by the pricing services provider are supervised by the Financial Superintendence of Colombia, which has not objected to them.
Daily, the back-office Service Valuation Officer (SVO) verifies the valuation of investments, and the Credit and Financial Risk Manager area reports the results of the portfolio’s valuation.
Fair value measurement
Assets and liabilities
a. Debt instruments
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The Group assigns prices to those debt investments, using the prices provided by the official pricing services provider (Precia) and assigns the appropriate level according to the procedure described above. For securities not traded or over-the-counter such as certain bonds issued by other financial institutions, the Group generally determines fair value utilizing internal valuation and standard techniques. These techniques include determination of expected future cash flows which are discounted using curves of the applicable currencies and the Colombian consumer price index (interest rate in this case), modified by the credit risk and liquidity risk. The interest rate is generally computed using observable market data and reference yield curves derived from quoted interest in appropriate time bandings, which match the timings of the cash flows and maturities of the instruments.
b. Equity securities and other financial instruments
The Group performs the market price valuation of its investments in variable income using the prices provided by the official pricing services provider (Precia) and classifies those investments according to the procedure described above (Hierarchy of fair value section). Likewise, the fair value of unlisted equity securities and other financial instruments is based on an assessment of each individual investment using methodologies that include publicly-traded comparable derived by multiplying a key performance metric (e.g., earnings before interest, taxes, depreciation and amortization) of the portfolio company by the relevant valuation multiple observed for comparable companies, acquisition comparable, and if necessary considered, are subject to appropriate discounts for lack of liquidity or marketability. Interests in investment funds, trusts and collective portfolios are valued using the investment unit value determined by the fund management company. For investment funds where the underlying assets are investment properties, the investment unit value depends on the investment properties value, determined as described below in “i. Investment property”.
c. Derivative financial instruments
The Group holds positions in standardized derivatives, such as futures over local stocks, and over the market representative rate. These instruments are evaluated according to the information provided by Precia, which perfectly matches the information provided by the Central Counterparty Clearing House – CCP.
Additionally, the Group holds positions in Over The Counter (OTC) derivatives, which in the absence of prices, are valued using the inputs and methodologies provided by the pricing services provider, which have the no objection of the SFC.
The key inputs depend upon the type of derivative and the nature of the underlying instrument and include interest rate yield curves, foreign exchange rates, the spot price of the underlying volatility, credit curves and correlation of such inputs.
d. Credit valuation adjustment
The Group measures the effects of the credit risk of its counterparties and its own creditworthiness in determining fair value of the swap, option and forward derivatives.
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Counterparty credit-risk adjustments are applied to derivatives when the Group’s position is a derivative asset and the Group’s credit risk is incorporated when the position is a derivative liability. The Group attempts to mitigate credit risk to third parties which are international Groups by entering into master netting agreements. The agreements allow to offset or bring net amounts that are liabilities, derivates from transactions carried out by the different agreements. Master netting agreements take different forms and may allow payments to be made under a variety of other master agreements or other negotiation agreements between the same parties; some may have a monthly basis and others only apply at the time the agreements are terminated.
When assessing the impact of credit exposure, only the net counterparty exposure is considered at risk, due to the offsetting of certain same-counterparty positions and the application of cash and other collateral.
The Group generally calculates the asset’s credit risk adjustment for derivatives transacted with international financial institutions by incorporating indicative credit related pricing that is generally observable in the market (Credit Default Swaps, “CDS”). The credit-risk adjustment for derivatives transacted with non-public counterparties is calculated by incorporating unobservable credit data derived from internal credit qualifications to the financial institutions and corporate companies located in each geography. The Group also considers its own creditworthiness when determining the fair value of an instrument, including OTC derivative instruments if the Group believes market participants would take that into account when transacting the respective instrument. The approach to measuring the impact of the Group’s credit risk on an instrument transacted with international financial institutions is done using the asset swap curve calculated for subordinated bonds issued by the Group in foreign currency. For derivatives transacted with local financial institutions, the Group calculates the credit risk adjustment by incorporating credit risk data provided by rating agencies and released in the financial markets.
e. Impaired loans measured at fair value
The Group measured certain impaired loans based on the fair value of the associated collateral less costs to sell. The fair values were determined as follows using external and internal valuation techniques or third party experts, depending on the type of underlying asset.
For vehicles under leasing arrangements, the Group uses an internal valuation model based on price curves for each type of vehicle. Such curves show the expected price of the vehicle at different points in time based on the initial price and projection of economic variables such as inflation, devaluation and customs. The prices modelled in the curves are compared every six months with market information for the same or similar vehicles and in the case of significant deviation; the curve is adjusted to reflect the market conditions.
Other vehicles are measured using matrix pricing from a third party. This matrix is used by most of the market participants and is updated monthly. The matrix is developed from values provided by several price providers for identical or similar vehicles and considers brand, characteristics of the vehicles, and manufacturing date among other variables to determine the prices.
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For real estate assets, a third-party qualified appraiser is used. The methodologies vary depending on the date of the last appraisal available for the property (the appraisal is estimated based on either of three approaches: cost, sales comparison and income approach, and is required every three years). When the property has been valued in the last 12 months and the market conditions have not shown significant changes, the most recent valuation is considered the fair value of the property.
For all other cases (for example, appraisals older than 12 months) the value of the property is updated by adjusting the value in the last appraisal for weighted factors such as location, type and characteristics of the property, size, structural conditions and the expected sales prices, among others. The factors are determined based on current market information gathered from several external real estate specialists. For all other cases (for example, appraisals older than 12 months) the value of the property is updated by adjusting the value in the last appraisal for weighted factors such as location, type and characteristics of the property, size, structural conditions and the expected sales prices, among others. The factors are determined based on current market information gathered from several external real estate specialists.
f. Assets held for sale measured at fair value less cost of sale
The Group measures certain impaired foreclosed assets and premises and equipment held for sale based on fair value less costs to sell. The fair values were determined using external and internal valuation techniques, depending on the type of underlying asset. Those assets are comprised mainly of real estate properties for which the appraisal is conducted by experts considering factors such as the location, type and characteristics of the property, size, physical conditions and expected selling costs, among others. Likewise, in some cases the fair value is estimated considering comparable prices or promises of sale and offering prices from auctions process.
g. Mortgage-backed securities (“TIPS”) and Asset-Backed securities
The Group invests in asset-backed securities for which underlying assets are mortgages and earnings under contracts issued by financial institutions and corporations, respectively. The Group does not have a significant exposure to sub-prime securities. The asset-backed securities are denominated in local market TIPS and are classified as fair value through profit or loss. These asset-backed securities have different maturities and are generally classified by credit ratings.
TIPS are part of the Group portfolio and its fair value is measured with published price by the official pricing services provider. These securities are leveled by margin and are assigned level 2 or 3 based on the Precia information.
Residual TIPS have their fair value measured using the discounted flow method, taking into account the amortization tables of the Titularizadora Colombiana, the betas in COP and UVR of Precia (used to construct the curves) and the margins; when they are residual TIPS of subordinated issues, a liquidity premium is applied. These securities are assigned level 3.
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h. Investments in associates measured at fair value
The Group recognizes its investments in P.A Viva Malls, P.A Distrito Vera and Fideicomiso Locales Distrito Vera as associates at fair value. The estimated amount is provided by the fund manager as the variation of the units according to the units owned by the FCP Fondo Inmobiliario Colombia. The associate’s assets are comprised of investment properties which are measured using the following techniques: comparable prices, discounted cash flows, replacement cost and direct capitalization. For further information about techniques methodologies and inputs used by the external party see “Quantitative Information about Level 3 Fair Value Measurements”.
i. Investment property
The Group’s investment property is valued by external experts, who use valuation techniques based on comparable prices, direct capitalization, discounted cash flows and replacement costs.
Assets and liabilities measured at fair value on a recurring basis
The following table presents for each of the fair-value hierarchy levels the Group’s assets and liabilities that are measured at fair value on a recurring basis at September 30, 2025 and December 31, 2024:
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| Financial Assets | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Type of instrument | September 30, 2025 | December 31, 2024 | |||||||||||||||
| Fair value hierarchy | Total fair<br><br>value | Fair value hierarchy | Total fair<br><br>value | ||||||||||||||
| Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||
| In millions of COP | |||||||||||||||||
| Investment securities | |||||||||||||||||
| Debt instruments at fair value through profit or loss | |||||||||||||||||
| Securities issued by the Colombian Government | 12,422,087 | 678,967 | 2,376 | 13,103,430 | 10,625,153 | 1,019,028 | - | 11,644,181 | |||||||||
| Securities issued or secured by government entities | - | 121,507 | - | 121,507 | - | 118,760 | - | 118,760 | |||||||||
| Securities issued by other financial institutions | 330,997 | 613,585 | 65,610 | 1,010,192 | 140,703 | 513,040 | 77,821 | 731,564 | |||||||||
| Securities issued by foreign governments | 6,849,360 | 3,709,840 | - | 10,559,200 | 6,191,395 | 4,092,055 | - | 10,283,450 | |||||||||
| Corporate bonds | 22,486 | 79,489 | 22,193 | 124,168 | 124,812 | 98,255 | 34,259 | 257,326 | |||||||||
| Total debt instruments at fair value through profit or loss | 19,624,930 | 5,203,388 | 90,179 | 24,918,497 | 17,082,063 | 5,841,138 | 112,080 | 23,035,281 | |||||||||
| Debt instruments at fair value through OCI | |||||||||||||||||
| Securities issued by the Colombian Government | 32,464 | - | 2,575,977 | 2,608,441 | 35,570 | - | 2,648,355 | 2,683,925 | |||||||||
| Securities issued by other financial institutions | — | 90,281 | - | 90,281 | 119,479 | 107,614 | 49,744 | 276,837 | |||||||||
| Securities issued by foreign governments | 1,160,006 | — | - | 1,160,006 | 368,736 | 1,115,810 | - | 1,484,546 | |||||||||
| Corporate bonds | 44,483 | 390,910 | 513,897 | 949,290 | 60,922 | 747 | 577,439 | 639,108 | |||||||||
| Total debt instruments at fair value through OCI | 1,236,953 | 481,191 | 3,089,874 | 4,808,018 | 584,707 | 1,224,171 | 3,275,538 | 5,084,416 | |||||||||
| Total debt instruments | 20,861,883 | 5,684,579 | 3,180,053 | 29,726,515 | 17,666,770 | 7,065,309 | 3,387,618 | 28,119,697 | |||||||||
| Equity securities | |||||||||||||||||
| Equity securities | 59,086 | 526,088 | 836,503 | 1,421,677 | 31,086 | 262,351 | 717,873 | 1,011,310 | |||||||||
| Total equity securities | 59,086 | 526,088 | 836,503 | 1,421,677 | 31,086 | 262,351 | 717,873 | 1,011,310 | |||||||||
| Other financial assets | |||||||||||||||||
| Other financial assets | - | - | 29,250 | 29,250 | - | - | 34,385 | 34,385 | |||||||||
| Total other financial assets | - | - | 29,250 | 29,250 | - | - | 34,385 | 34,385 | |||||||||
| Derivative financial instruments | |||||||||||||||||
| Forwards | |||||||||||||||||
| Foreign exchange contracts | - | 2,133,116 | 651,318 | 2,784,434 | - | 617,961 | 466,869 | 1,084,830 | |||||||||
| Equity contracts | - | 4,222 | — | 4,222 | - | 298 | 51,347 | 51,645 | |||||||||
| Total forwards | - | 2,137,338 | 651,318 | 2,788,656 | - | 618,259 | 518,216 | 1,136,475 | |||||||||
| Swaps | |||||||||||||||||
| Foreign exchange contracts | - | 828,175 | 127,037 | 955,212 | - | 1,200,777 | 262,479 | 1,463,256 | |||||||||
| Interest rate contracts | 78,614 | 76,241 | 30,214 | 185,069 | 105,560 | 114,980 | 15,493 | 236,033 | |||||||||
| Total swaps | 78,614 | 904,416 | 157,251 | 1,140,281 | 105,560 | 1,315,757 | 277,972 | 1,699,289 | |||||||||
| Options | |||||||||||||||||
| Foreign exchange contracts | 929 | 52,401 | 59,858 | 113,188 | 161 | 36,207 | 66,010 | 102,378 | |||||||||
| Total options | 929 | 52,401 | 59,858 | 113,188 | 161 | 36,207 | 66,010 | 102,378 | |||||||||
| Total derivative financial instruments | 79,543 | 3,094,155 | 868,427 | 4,042,125 | 105,721 | 1,970,223 | 862,198 | 2,938,142 | |||||||||
| Investment properties | |||||||||||||||||
| Lands | - | - | 642,987 | 642,987 | - | - | 499,833 | 499,833 | |||||||||
| Buildings | - | - | 5,384,509 | 5,384,509 | - | - | 5,080,276 | 5,080,276 | |||||||||
| Total investment properties | - | - | 6,027,496 | 6,027,496 | - | - | 5,580,109 | 5,580,109 | |||||||||
| Investment in associates at fair value | |||||||||||||||||
| Investment in associates at fair value | - | - | 1,956,262 | 1,956,262 | - | - | 1,830,884 | 1,830,884 | |||||||||
| Total investment in associates at fair value | - | - | 1,956,262 | 1,956,262 | - | - | 1,830,884 | 1,830,884 | |||||||||
| Total | 21,000,512 | 9,304,822 | 12,897,991 | 43,203,325 | 17,803,577 | 9,297,883 | 12,413,067 | 39,514,527 |
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| Financial liabilities | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Type of instrument | September 30, 2025 | December 31, 2024 | |||||||||||||||
| Fair value hierarchy | Total fair<br><br>value | Fair value hierarchy | Total fair<br><br>value | ||||||||||||||
| Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||
| In millions of COP | |||||||||||||||||
| Derivative financial instruments | |||||||||||||||||
| Forwards | |||||||||||||||||
| Foreign exchange contracts | - | 2,991,853 | 80,178 | 3,072,031 | - | 885,520 | 86,775 | 972,295 | |||||||||
| Equity contracts | - | 17,002 | - | 17,002 | - | 89 | 1,278 | 1,367 | |||||||||
| Total forwards | - | 3,008,855 | 80,178 | 3,089,033 | - | 885,609 | 88,053 | 973,662 | |||||||||
| Swaps | |||||||||||||||||
| Foreign exchange contracts | - | 1,220,357 | 62,670 | 1,283,027 | - | 1,264,593 | 67,838 | 1,332,431 | |||||||||
| Interest rate contracts | 77,720 | 132,040 | 4,866 | 214,626 | 102,701 | 160,721 | 27,646 | 291,068 | |||||||||
| Total swaps | 77,720 | 1,352,397 | 67,536 | 1,497,653 | 102,701 | 1,425,314 | 95,484 | 1,623,499 | |||||||||
| Options | |||||||||||||||||
| Foreign exchange contracts | 740 | 173,076 | - | 173,816 | 421 | 82,061 | - | 82,482 | |||||||||
| Total options | 740 | 173,076 | - | 173,816 | 421 | 82,061 | - | 82,482 | |||||||||
| Total derivative financial instruments | 78,460 | 4,534,328 | 147,714 | 4,760,502 | 103,122 | 2,392,984 | 183,537 | 2,679,643 | |||||||||
| Total | 78,460 | 4,534,328 | 147,714 | 4,760,502 | 103,122 | 2,392,984 | 183,537 | 2,679,643 |
Fair value of assets and liabilities that are not measured at fair value in the Condensed Consolidated Interim Statement of Financial Position
The following table presents for each of the fair-value hierarchy levels the Group’s assets and liabilities that are not measured at fair value in the Condensed Consolidated Interim Statement of Financial Position, but for which the fair value is disclosed at September 30, 2025 and December 31, 2024:
| Assets | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Type of instrument | September 30, 2025 | December 31, 2024 | |||||||||||||||
| Fair value hierarchy | Total fair<br><br>value | Fair value hierarchy | Total fair<br><br>value | ||||||||||||||
| Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||
| In millions of COP | |||||||||||||||||
| Debt instruments | |||||||||||||||||
| Securities issued by the Colombian Government | 148,311 | - | - | 148,311 | 156,209 | - | - | 156,209 | |||||||||
| Securities issued or secured by government entities | - | 44,660 | 3,911,583 | 3,956,243 | - | 46,272 | 3,326,959 | 3,373,231 | |||||||||
| Securities issued by other financial institutions | 134,187 | 106,882 | 53,531 | 294,600 | 284,281 | 57,091 | 250,508 | 591,880 | |||||||||
| Securities issued by foreign governments | 239,918 | 271,797 | - | 511,715 | 412,579 | 227,076 | - | 639,655 | |||||||||
| Corporate bonds | 973,910 | 10,430 | 2,678,130 | 3,662,470 | 1,050,588 | 14,017 | 2,578,160 | 3,642,765 | |||||||||
| Total – Debt instruments | 1,496,326 | 433,769 | 6,643,244 | 8,573,339 | 1,903,657 | 344,456 | 6,155,627 | 8,403,740 | |||||||||
| Loans and advances to customers, net | - | - | 273,362,653 | 273,362,653 | - | - | 269,345,583 | 269,345,583 | |||||||||
| Total | 1,496,326 | 433,769 | 280,005,897 | 281,935,992 | 1,903,657 | 344,456 | 275,501,210 | 277,749,323 |
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| Liabilities | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Type of instruments | September 30, 2025 | December 31, 2024 | |||||||||||||||
| Fair value hierarchy | Total fair<br><br>value | Fair value hierarchy | Total fair<br><br>value | ||||||||||||||
| Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||
| In millions of COP | |||||||||||||||||
| Deposits by customers | - | 64,878,559 | 216,420,219 | 281,298,778 | - | 60,894,992 | 218,568,020 | 279,463,012 | |||||||||
| Interbank deposits | - | - | 882,390 | 882,390 | - | - | 716,493 | 716,493 | |||||||||
| Repurchase agreements and other similar secured borrowing | - | - | 3,174,591 | 3,174,591 | - | - | 1,060,472 | 1,060,472 | |||||||||
| Borrowings from other financial institutions | - | - | 11,653,378 | 11,653,378 | - | - | 15,689,532 | 15,689,532 | |||||||||
| Debt instruments in issue | 6,919,202 | 2,236,704 | 2,528,009 | 11,683,915 | 5,811,412 | 2,669,991 | 2,908,095 | 11,389,498 | |||||||||
| Preferred shares | - | - | 375,404 | 375,404 | - | - | 407,174 | 407,174 | |||||||||
| Total | 6,919,202 | 67,115,263 | 235,033,991 | 309,068,456 | 5,811,412 | 63,564,983 | 239,349,786 | 308,726,181 |
IFRS requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized in the Condensed Consolidated Interim Statement of Financial Position, for which it is practicable to estimate fair value. Certain categories of assets and liabilities, however, are not eligible for fair value accounting. The financial instruments below are not measured at fair value on a recurring and nonrecurring basis:
Short-term financial instruments
Short-term financial instruments are valued at their carrying amounts included in the Condensed Consolidated Interim Statement of Financial Position, which are reasonable estimates of fair value due to the relatively short period to maturity of the instruments. This approach was used for cash and cash equivalents, accrued interest receivable, customers’ acceptances, accounts receivable, accounts payable, accrued interest payable and bank acceptances outstanding.
Deposits from customers
The fair value of time deposits was estimated based on the discounted value of cash flows using the appropriate discount rate for the applicable maturity. Fair value of deposits with no contractual maturities represents the amount payable on demand as of the statement of financial position date.
Interbank deposits and repurchase agreements and other similar secured borrowings
Short-term interbank borrowings and repurchase agreements have been valued at their carrying amounts because of their relatively short-term nature. Long-term and domestic development bank borrowings have also been valued at their carrying amount because they bear interest at variable rates.
Borrowings from other financial institutions
The fair value of borrowings from other financial institutions were determined using discounted cash flow models. The cash flows projection of capital and interest was made according to the contractual terms, considering capital amortization
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and interest bearing. Subsequently, the cash flows were discounted using reference curves formed by the weighted average of the Group’s deposit rates.
Debt instruments in issue
The fair value of debt instruments in issue, comprised of bonds issued by Bancolombia S.A. and its subsidiaries, was estimated substantially based on quoted market prices. The fair value of certain bonds which do not have a public trading market, were determined based on the discounted value of cash flows using the rates currently offered for bonds of similar remaining maturities and the Group’s creditworthiness.
Preferred shares
In the valuation of the liability component of preferred shares related to the minimum dividend of 1% of the subscription price, the Group uses the Gordon Model to price the obligation, taking into account its own credit risk, which is measured using the market spread based on observable inputs such as quoted prices of sovereign debt. The Gordon Model is commonly used to determine the intrinsic value of a stock based on a future series of dividends that are estimated by the Group and growth at a constant rate considering the Group’s own perspectives of the payout ratio.
Loans and advances to customers
Estimating the fair value of loans and advances to customers is considered an area of considerable uncertainty as there is no observable market. The loan portfolio is stratified into tranches and loans segments such as commercial, consumer, small business loans, mortgage and leasing. The fair value of loans and advances to customers and financial institutions is determined using a discounted cash flow methodology, considering each credit’s principal and interest projected cash flows to the prepayment date. The projected cash flows are discounted using reference curves according to the type of loan and its maturity date.
Items measured at fair value on a non-recurring basis
The Group measures assets held for sale based on fair value less costs to sell. This category includes certain foreclosed assets and investments in associates held for sale. The fair values were determined using external and internal valuation techniques or third party experts, depending on the type of underlying asset. The following breakdown sets forth the fair value hierarchy of those assets classified by type:
| Type of instruments | September 30, 2025 | December 31, 2024 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fair-value hierarchy | Total fair<br><br>value | Fair-value hierarchy | Total fair<br><br>value | ||||||||||||||
| Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||
| In millions of COP | |||||||||||||||||
| Machinery and equipment | - | - | 9,977 | 9,977 | - | - | 10,085 | 10,085 | |||||||||
| Real estate for residential purposes | - | - | 104,818 | 104,818 | - | - | 133,863 | 133,863 | |||||||||
| Real estate different from residential properties | - | - | 4,245 | 4,245 | - | - | 29,794 | 29,794 | |||||||||
| Total | - | - | 119,040 | 119,040 | - | - | 173,742 | 173,742 |
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Changes in level 3 fair-value category
The table below presents reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs at September 30, 2025 and 2024:
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As of September 30, 2025
| Type of instruments | Balance,<br>January 1,<br>2025 | Included in earnings | OCI | Purchases and Renewals | Sales and maturities | Reclassifications(1) | Prepaids | Transfers<br><br>in to<br><br>level 3 | Transfers<br><br>out of<br><br>level 3 | Balance,<br>September 30, 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| In millions of COP | ||||||||||
| Assets | ||||||||||
| Debt instruments at fair value though profit or loss | ||||||||||
| Securities issued by the Colombian Government | - | 45 | - | 2,331 | - | - | - | - | - | 2,376 |
| Securities issued or secured by other financial entities | 77,821 | 4,212 | - | 5,432 | (4,250) | - | (2,934) | 2,819 | (17,490) | 65,610 |
| Corporate bonds | 34,259 | 515 | - | 3,045 | (15,626) | - | - | - | - | 22,193 |
| Total | 112,080 | 4,772 | - | 10,808 | (19,876) | - | (2,934) | 2,819 | (17,490) | 90,179 |
| Debt instruments at fair value through OCI | ||||||||||
| Securities issued by the Colombian Government | 2,648,355 | - | 85,330 | 2,490,647 | (2,648,355) | - | - | - | - | 2,575,977 |
| Securities issued or secured by other financial entities | 49,744 | - | - | - | - | - | - | - | (49,744) | - |
| Corporate bonds | 577,439 | - | (31,503) | - | - | - | - | - | (32,039) | 513,897 |
| Total | 3,275,538 | - | 53,827 | 2,490,647 | (2,648,355) | - | - | - | (81,783) | 3,089,874 |
| Derivative financial instruments | ||||||||||
| Foreign exchange contracts | 795,358 | 98,666 | - | 605,232 | (573,718) | (64,282) | - | 152,120 | (175,163) | 838,213 |
| Interest rate contracts | 15,493 | (4,119) | - | 15,583 | (566) | - | - | 3,965 | (142) | 30,214 |
| Equity contracts | 51,347 | - | - | - | (51,347) | - | - | - | - | - |
| Total | 862,198 | 94,547 | - | 620,815 | (625,631) | (64,282) | - | 156,085 | (175,305) | 868,427 |
| Equity securities | ||||||||||
| Equity securities | 717,873 | 24,938 | (26,200) | 78,275 | (30,098) | - | - | 71,715 | - | 836,503 |
| Total | 717,873 | 24,938 | (26,200) | 78,275 | (30,098) | - | - | 71,715 | - | 836,503 |
| Other financial instruments | ||||||||||
| Other financial instruments | 34,385 | (5,135) | - | - | - | - | - | - | - | 29,250 |
| Total | 34,385 | (5,135) | - | - | - | - | - | - | - | 29,250 |
| Investment in associates | ||||||||||
| P.A. Viva Malls | 1,817,503 | 125,417 | - | - | - | - | - | - | - | 1,942,920 |
| P.A. Distrito Vera | 13,325 | 77 | - | - | (206) | - | - | - | - | 13,196 |
| Fideicomiso Locales Distrito Vera | 56 | (2) | - | 92 | - | - | - | - | - | 146 |
| Total | 1,830,884 | 125,492 | - | 92 | (206) | - | - | - | - | 1,956,262 |
| Investment properties | ||||||||||
| Investment properties | 5,580,109 | 91,041 | - | 484,793 | (93,006) | (35,441) | - | - | - | 6,027,496 |
| Total | 5,580,109 | 91,041 | - | 484,793 | (93,006) | (35,441) | - | - | - | 6,027,496 |
| Total Assets | 12,413,067 | 335,655 | 27,627 | 3,685,430 | (3,417,172) | (99,723) | (2,934) | 230,619 | (274,578) | 12,897,991 |
| Liabilities | ||||||||||
| Derivative financial instruments | ||||||||||
| Foreign exchange contracts | 154,613 | 4,253 | - | 80,229 | (84,121) | (64,282) | - | 55,878 | (3,722) | 142,848 |
| Interest rate contracts | 27,646 | (78) | - | 1,672 | (3,817) | - | - | 3,064 | (23,621) | 4,866 |
| Equity contracts | 1,278 | - | - | - | (1,278) | - | - | - | - | - |
| Total | 183,537 | 4,175 | - | 81,901 | (89,216) | (64,282) | - | 58,942 | (27,343) | 147,714 |
| Total liabilities | 183,537 | 4,175 | - | 81,901 | (89,216) | (64,282) | - | 58,942 | (27,343) | 147,714 |
(1)From derivative assets to derivative liabilities classified in level 3 and vice versa.
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As of September 30, 2024
| Type of instruments | Balance,<br>January 1,<br>2024 | Included in earnings | OCI | Purchases and Renewals | Sales and maturities | Reclassifications(1) | Prepaids | Transfers<br><br>in to<br><br>level 3 | Transfers<br><br>out of<br><br>level 3 | Balance,<br>September 30,<br>2024 |
|---|---|---|---|---|---|---|---|---|---|---|
| In millions of COP | ||||||||||
| Assets | ||||||||||
| Debt instruments at fair value though profit or loss | ||||||||||
| Securities issued or secured by other financial entities | 78,729 | 2,236 | - | 13,640 | (11,309) | - | (2,200) | 9,586 | (5,567) | 85,115 |
| Corporate bonds | 14,284 | 1,063 | - | - | - | - | - | 1,883 | - | 17,230 |
| Total | 93,013 | 3,299 | - | 13,640 | (11,309) | - | (2,200) | 11,469 | (5,567) | 102,345 |
| Debt instruments at fair value through OCI | ||||||||||
| Securities issued by the Colombian Government | 2,664,295 | - | 113,847 | 2,490,648 | (2,664,295) | - | - | - | - | 2,604,495 |
| Securities issued or secured by other financial entities | - | - | (108) | 50,016 | - | - | - | - | - | 49,908 |
| Corporate bonds | - | - | 2,324 | 39,518 | - | - | - | - | - | 41,842 |
| Total | 2,664,295 | - | 116,063 | 2,580,182 | (2,664,295) | - | - | - | - | 2,696,245 |
| Derivative financial instruments | ||||||||||
| Foreign exchange contracts | 1,384,673 | (43,478) | - | 464,002 | (1,161,378) | (10,099) | - | 349,943 | (78,925) | 904,738 |
| Interest rate contracts | 15,621 | 2,983 | - | 5,915 | (2,852) | (230) | - | 19,648 | (4,942) | 36,143 |
| Equity contracts | 2,863 | - | - | 7,584 | (2,863) | - | - | - | - | 7,584 |
| Total | 1,403,157 | (40,495) | - | 477,501 | (1,167,093) | (10,329) | - | 369,591 | (83,867) | 948,465 |
| Equity securities | ||||||||||
| Equity securities | 384,682 | 1,196 | 22,561 | 16,610 | (19,593) | - | - | - | (2) | 405,454 |
| Total | 384,682 | 1,196 | 22,561 | 16,610 | (19,593) | - | - | - | (2) | 405,454 |
| Other financial instruments | ||||||||||
| Other financial instruments | 38,319 | (7,202) | - | - | - | - | - | - | - | 31,117 |
| Total | 38,319 | (7,202) | - | - | - | - | - | - | - | 31,117 |
| Investment in associates | ||||||||||
| P.A. Viva Malls | 1,661,679 | 136,295 | - | - | - | - | - | - | - | 1,797,974 |
| P.A. Distrito Vera | 9,103 | 3,024 | - | 5,599 | - | - | - | - | - | 17,726 |
| Total | 1,670,782 | 139,319 | - | 5,599 | - | - | - | - | - | 1,815,700 |
| Investment properties | ||||||||||
| Investment properties | 4,709,911 | 40,266 | - | 1,023,217 | (305,431) | - | - | - | - | 5,467,963 |
| Total | 4,709,911 | 40,266 | - | 1,023,217 | (305,431) | - | - | - | - | 5,467,963 |
| Total Assets | 10,964,159 | 136,383 | 138,624 | 4,116,749 | (4,167,721) | (10,329) | (2,200) | 381,060 | (89,436) | 11,467,289 |
| Liabilities | ||||||||||
| Derivative financial instruments | ||||||||||
| Foreign exchange contracts | 170,798 | 20,981 | - | 140,142 | (86,706) | (10,099) | - | 235,600 | (78,947) | 391,769 |
| Interest rate contracts | 11,078 | 7 | - | 23 | (4,514) | (230) | - | 13,608 | (6,158) | 13,814 |
| Equity contracts | 1,852 | - | - | 558 | (1,852) | - | - | - | - | 558 |
| Total | 183,728 | 20,988 | - | 140,723 | (93,072) | (10,329) | - | 249,208 | (85,105) | 406,141 |
| Total liabilities | 183,728 | 20,988 | - | 140,723 | (93,072) | (10,329) | - | 249,208 | (85,105) | 406,141 |
(1)From derivative assets to derivative liabilities classified in level 3 and vice versa.
Level 3 fair value rollforward
The following were the significant level 3 transfers at September 30, 2025 and 2024:
As of September 30, 2025 and 2024, net transfers in the Group for COP 147,962 and COP (1,238), respectively, from level 3 to level 2 of derivatives foreign exchange contracts and interest rate contracts, it was presented due to the transfer
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of the credit risk of the counterparty to the own credit risk. As of September 30, 2025 and 2024. net transfers for COP 97,143 and COP 120,383, respectively, from level 2 to level 3 of the derivative foreign exchange contracts and interest rate contracts, it was presented due to the transfer of the credit risk from the Group to the credit risk of the counterparty.
As of September 30, 2025, there are corporate bonds of debt instruments at fair value through OCI for COP 513,897.
As of September 30, 2025 and 2024, unrealized gains and losses on debt instruments were COP 4,772 and COP 3,299; equity securities COP 25,017 and COP 1,196, respectively.
Transfers between level 1 and level 2 of the fair value hierarchy
The table below presents the transfers for all assets and liabilities measured at fair value on a recurring basis between level 1 and level 2 as of September 30, 2025 and December 31, 2024:
| Type of instruments | September 30, 2025 | December 31, 2024 | ||||||
|---|---|---|---|---|---|---|---|---|
| Transfers level 1 to level 2 | Transfers level<br><br>2 to level 1 | Transfers level<br><br>1 to level 2 | Transfers level<br><br>2 to level 1 | |||||
| In millions of COP | ||||||||
| Debt instruments at fair value though profit or loss | ||||||||
| Securities issued by the Colombian Government | 37,506 | - | 202,779 | - | ||||
| Securities issued or secured by foreign government | - | 139,897 | 26,866 | 929 | ||||
| Total | 37,506 | 139,897 | 229,645 | 929 | ||||
| Debt instruments at fair value through OCI | ||||||||
| Securities issued or secured by foreign government | - | 1,025,039 | 467,133 | 137,884 | ||||
| Total | - | 1,025,039 | 467,133 | 137,884 | ||||
| Equity securities | ||||||||
| Equity securities | 2 | 10,018 | 63,827 | - | ||||
| Total | 2 | 10,018 | 63,827 | - |
As of September 30, 2025, the Group transferred securities from level 1 to level 2, because such securities had lower liquidity and lower trading in an active market.
All transfers are assumed to occur at the end of the reporting period.
Quantitative information about level 3 fair value measurements
The fair value of financial instruments is, in certain circumstances, measured using valuation techniques that incorporate assumptions that are not evidenced by prices from observable market transactions in the same instrument and are not based on observable market data. Changing one or more of the inputs to the valuation models to reasonably possible alternative assumptions would change the fair values and therefore a valuation adjustment would be recognized in profit or loss. Favorable and unfavorable changes are determined on the basis of changes in the value of the instrument as a result of varying the levels of the unobservable input as described in the table below.
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The following table sets forth information about significant unobservable inputs related to the Group’s material categories of level 3 financial assets and liabilities and the sensitivity of these fair values to reasonably possible alternative assumptions.
As of September 30, 2025
| Type of instruments | Fair Value | Valuation<br><br>technique | Significant<br><br>unobservable input | Range of<br><br>inputs | Weighted<br><br>average | Sensitivity<br><br>100<br><br>basis point<br><br>increase | Sensitivity<br><br>100<br><br>basis point<br><br>decrease | ||
|---|---|---|---|---|---|---|---|---|---|
| In millions of COP | |||||||||
| Debt instruments | |||||||||
| Securities issued by other financial institutions | |||||||||
| TIPS | 60,097 | Discounted cash flow | Yield | 0.14% to 10.31% | 3.33 % | 58,679 | 61,560 | ||
| Prepayment Speed | n/a | n/a | 60,200 | n/a | |||||
| Prepayment Speed | n/a | n/a | 56,687 | n/a | |||||
| Time deposits | 5,513 | Discounted cash flow | Yield / Interest rate | 0.71% to 1.46% | 2.17% | 5,296 | 5,544 | ||
| Total securities issued by other financial institutions | 65,610 | ||||||||
| Securities issued by the Colombian Government | |||||||||
| Bonds by government entities | 2,578,353 | Discounted cash flow | Interest rate | 0.50% to 10.52% | 6.48% | 2,572,498 | 2,605,852 | ||
| Corporate bonds | |||||||||
| Corporate bonds | 536,090 | Discounted cash flow | Yield / Interest rate | -0.16% to 5.05% | 1.51% | 490,901 | 556,544 | ||
| Total debt instruments | 3,180,053 | ||||||||
| Equity securities | |||||||||
| Equity securities | 836,503 | Price-based | Price | n/a | n/a | n/a | n/a | ||
| Other financial instruments | |||||||||
| Other financial instruments | 29,250 | Internal valuation methodology | Internal valuation methodology | n/a | n/a | n/a | n/a | ||
| Derivative financial instruments | |||||||||
| Forward | 571,140 | Discounted cash flow | Credit spread / Yield | 0.00% to 26.41% | 2.97% | 570,356 | 572,560 | ||
| Swaps | 89,715 | Discounted cash flow | Credit spread / Yield | 0.00% to 171.39% | 4.81% | 75,765 | 103,919 | ||
| Options | 59,858 | Discounted cash flow | Credit spread / Yield | 0.11% to 40.87% | 0.40% | 59,407 | 60,027 | ||
| Total derivative financial instruments | 720,713 | ||||||||
| Investment in associates | |||||||||
| P.A. Viva Malls | 1,942,920 | Price-based | Price | n/a | n/a | n/a | n/a | ||
| P.A. Distrito Vera | 13,196 | Price-based | Price | n/a | n/a | n/a | n/a | ||
| Fideicomiso Locales Distrito Vera | 146 | Price-based | Price | n/a | n/a | n/a | n/a | ||
| Total investment in associates | 1,956,262 |
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As of December 31, 2024
| Type of instruments | Fair Value | Valuation<br><br>technique | Significant<br><br>unobservable input | Range of<br><br>inputs | Weighted<br><br>average | Sensitivity<br><br>100<br><br>basis point<br><br>increase | Sensitivity<br><br>100<br><br>basis point<br><br>decrease | ||
|---|---|---|---|---|---|---|---|---|---|
| In millions of COP | |||||||||
| Debt instruments | |||||||||
| Securities issued by other financial institutions | |||||||||
| TIPS | 63,280 | Discounted cash flow | Yield | 0.14% to 10.66% | 3.61 % | 61,474 | 65,164 | ||
| Prepayment Speed | n/a | n/a | 65,081 | n/a | |||||
| Prepayment Speed | n/a | n/a | 60,732 | n/a | |||||
| Other bonds | 62,558 | Discounted cash flow | Interest rate | 0.10% to 1.12% | 0.94% | 61,003 | 64,177 | ||
| Time deposits | 1,727 | Discounted cash flow | Yield / Interest rate | 0.91% to 6.40% | 3.36% | 1,441 | 1,772 | ||
| Total securities issued by other financial institutions | 127,565 | ||||||||
| Securities issued by the Colombian Government | |||||||||
| Bonds by government entities | 2,648,355 | Discounted cash flow | Yield | 1.18% to 1.18% | 1.18% | 2,639,349 | 2,660,301 | ||
| Corporate bonds | |||||||||
| Corporate bonds | 611,698 | Discounted cash flow | Yield | 0.00% to 5.25% | 0.98% | 573,929 | 647,264 | ||
| Total debt instruments | 3,387,618 | ||||||||
| Equity securities | |||||||||
| Equity securities | 717,873 | Price-based | Price | n/a | n/a | n/a | n/a | ||
| Other financial instruments | |||||||||
| Other financial instruments | 34,385 | Internal valuation methodology | Internal valuation methodology | n/a | n/a | n/a | n/a | ||
| Derivative financial instruments | |||||||||
| Forward | 430,163 | Discounted cash flow | Credit spread / Yield | 0.00% to 20.80% | 7.05% | 429,581 | 430,753 | ||
| Swaps | 182,488 | Discounted cash flow | Credit spread / Yield | 0.00% to 56.14% | 4.03% | 166,650 | 204,677 | ||
| Options | 66,010 | Discounted cash flow | Credit spread / Yield | 0.12% to 34.75% | 0.50% | 65,512 | 66,242 | ||
| Total derivative financial instruments | 678,661 | ||||||||
| Investment in associates | |||||||||
| P.A. Viva Malls | 1,817,503 | Price-based | Price | n/a | n/a | n/a | n/a | ||
| P.A. Distrito Vera | 13,325 | Price-based | Price | n/a | n/a | n/a | n/a | ||
| Fideicomiso Locales Distrito Vera | 56 | Price-based | Price | n/a | n/a | n/a | n/a | ||
| Total investment in associates | 1,830,884 |
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The following table sets forth information about valuation techniques used in the measurement of the fair value investment properties of the Group, the significant unobservable inputs and the respective sensitivity:
| Methodology | Valuation technique | Significant unobservable input | Description of sensitivity |
|---|---|---|---|
| Sales Comparison Approach - SCA<br><br>The fair value assessment is based on the examination of prices at which similar properties in the same area recently sold. Since no two properties are identical the measurement valuation must take into account adjustments for the differences between the sold properties and those held by the Bank to earn rentals or for capital appreciation. | Comparable prices | The weighted average rates used in the capitalization methodology for revenues in the second quarter for 2025 are:<br><br>•Direct capitalization: initial rate 8.16%.<br><br>•Discounted cash flow: discount rate: 12.24%, terminal rate: 8.32%.<br><br>The same weighted rates for the last quarter of 2024 were:<br><br>•Direct capitalization: initial rate 8.13%<br><br>•Discounted cash flow: discount rate: 12.27%, terminal rate: 8.29%.<br><br>The ratio between monthly gross income and real estate value directly administered by the FIC (rental rate) considering the differences in placements and individual factors between properties and in a weighted way in the second quarter of 2025 are 0.76% and for December 31, 2024 was 0.88%. | An increase (light, normal, considerable, significant) in the capitalization rate used would generate a decrease (significant, considerable, normal, light) in the fair value of the asset, and vice versa.<br><br>An increase (light, normal, considerable, significant) in the leases used in the valuation would generate a (significant, light, considerable) increase in the fair value of the asset, and vice versa. |
| Income Approach<br><br>Used to estimate the fair value of the property by taking future net cash flows and discounting them at the capitalization rate. | Direct capitalization<br><br>Discounted cash flows | ||
| Cost approach<br><br>Used to estimate the fair value of the property considering the cost to replace or build a property at the same or equal conditions of the asset to be measured, deducting the accumulated depreciation charge and adding-up the amount of the land. | Replacement cost |
There has been no change to the valuation technique during the year 2025 for each asset.
NOTE 22. SUBSEQUENT EVENTS
Approval of Consolidated Financial Statements
These Condensed Consolidated Interim Financial Statements were approved by Chief Executive Financial for publication at November 06, 2025. The Financial Statements have been not audited.
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On October 21, 2025, Banistmo completed the partial spin-off of 100% of its shares in Valores Banistmo to Cibest Panamá Assets S.A., a Panamanian company wholly owned by Grupo Cibest. For more information, see Note 1. Reporting Entity
RISK MANAGEMENT
In the economic sphere, throughout the year, the continuation of the global macroeconomic stabilization process has been confirmed, supported by a gradual improvement in the growth pace of several developed and emerging economies. At the same time, upward risks to inflation remain relevant, in an environment of high indexation in service prices and increased trade barriers, which could exert inflationary pressures toward the end of 2025 and into 2026. Additionally, geopolitical conflicts and the deterioration of public finances in certain regions have contributed to increased volatility in international financial markets.
Credit risk
Credit risk represents the likelihood that the Group may incur financial losses due to a counterparty, issuer, or debtor failing to meet their contractual obligations. It also encompasses losses resulting from credit rating downgrades, reduced earnings and returns, concessions granted during debt restructurings, and recovery-related costs. As the most significant risk inherent to banking operations, credit risk is actively managed throughout each phase of the credit cycle.
The information below contains the maximum exposure to credit risk for the periods ending September 30, 2025 and December 31, 2024:
September 30, 2025
| Maximum exposure to credit risk - Financial instruments subject to impairment | ||||
|---|---|---|---|---|
| In millions of COP | ||||
| Stage 1 | Stage 2 | Stage 3 | Total | |
| Loans and Advances | 247,768,050 | 17,335,637 | 14,868,936 | 279,972,623 |
| Commercial | 137,317,012 | 5,274,862 | 8,599,540 | 151,191,414 |
| Consumer | 47,876,173 | 5,226,327 | 3,064,066 | 56,166,566 |
| Mortgage | 38,189,242 | 2,920,073 | 1,830,902 | 42,940,217 |
| Small Business Loans | 1,491,323 | 285,001 | 109,760 | 1,886,084 |
| Financial Leases | 22,894,300 | 3,629,374 | 1,264,668 | 27,788,342 |
| Off-Balance Sheet Exposures | 52,136,391 | 604,670 | 542,660 | 53,283,721 |
| Financial Guarantees | 8,829,099 | 10,067 | 157,451 | 8,996,617 |
| Loan Commitments * | 43,307,292 | 594,603 | 385,209 | 44,287,104 |
| Loss Allowance | (1,984,481) | (2,978,373) | (9,675,140) | (14,637,994) |
| Total | 297,919,960 | 14,961,934 | 5,736,456 | 318,618,350 |
* The informational disclosed value of loan commitments has been updated.
F-79
December 31, 2024
| Maximum exposure to credit risk - Financial instruments subject to impairment | ||||
|---|---|---|---|---|
| In millions of COP | ||||
| Stage 1 | Stage 2 | Stage 3 | Total | |
| Loans and Advances | 245,272,297 | 16,670,291 | 17,511,320 | 279,453,908 |
| Commercial | 137,761,467 | 5,545,788 | 9,945,556 | 153,252,811 |
| Consumer | 46,697,013 | 5,118,607 | 4,000,063 | 55,815,683 |
| Mortgage | 37,076,580 | 2,701,930 | 1,963,091 | 41,741,601 |
| Small Business Loans | 1,175,803 | 91,256 | 85,150 | 1,352,209 |
| Financial Leases | 22,561,434 | 3,212,710 | 1,517,460 | 27,291,604 |
| Off-Balance Sheet Exposures | 46,219,765 | 552,862 | 680,307 | 47,452,934 |
| Financial Guarantees | 9,926,719 | 17,800 | 199,782 | 10,144,301 |
| Loan Commitments | 36,293,046 | 535,062 | 480,525 | 37,308,633 |
| Loss Allowance | (2,331,035) | (2,752,141) | (11,397,984) | (16,481,160) |
| Total | 289,161,027 | 14,471,012 | 6,793,643 | 310,425,682 |
The maximum exposure to credit risk from the loan portfolio and finance lease operations corresponds to their carrying amount at the end of the period, without considering any collateral received or other credit enhancements.
The maximum exposure to credit risk from off-balance sheet positions includes financial guarantees, rate and credit line commitments, and available credit facilities granted at the end of the period, without considering any collateral received or other credit enhancements.
Credit Risk Management - Loans and Advances
As of the third quarter of 2025, Colombia’s economy recorded moderate growth, while Panama and Guatemala maintained robust performance. In contrast, El Salvador showed a slowdown compared to the end of 2024. In Colombia, the favorable trend in sectors such as entertainment, agriculture, and commerce has been supported by the gradual reduction in interest rates and the moderation of inflation—factors that have driven household consumption. Panamá and Guatemala, meanwhile, stand out for their strong momentum in the services sector, private consumption, and government spending, while El Salvador continues to navigate its fiscal consolidation process. However, global uncertainty stemming from rising geopolitical and trade tensions persists, leading to increased investor caution and affecting the overall economic outlook.
In response to this situation, the Group has maintained support for its clients with the aim of ensuring proactive credit risk management and evaluating specific conditions and requests to meet their credit needs, as well as developing methodologies, tools, and models to optimize collections. The monitoring and review of credit portfolios from different perspectives continue to be a key factor in identifying and enhancing the implementation of proactive strategies at various stages of the credit cycle.
Risk management for different types of credit operations carried out by the Group is conducted through compliance with the policies, procedures, and methodologies established in the Credit Risk Management System, which also includes general criteria for assessing, rating, assuming, controlling, and hedging the mentioned risk. Furthermore, the Management has developed process manuals and methodologies that specify the policies and procedures for different products and segments served by the Group, reflecting the strategy approved by the Board of Directors for credit risk monitoring and control.
F-80
Country Risk
This risk refers to the possibility of Grupo Cibest Consolidated incurring losses as a result of Bancolombia S.A., Banca de Inversión Bancolombia S.A., Valores Bancolombia S.A. y Fiduciaria Bancolombia S.A., financial operations abroad due to adverse economic and/or political conditions in the country receiving those operations, either because of restrictions on the transfer of foreign exchange or because of factors not attributable to the commercial and financial condition of the country receiving those operations. This definition includes, but is not limited to, sovereign risk (SR) and transfer risk (TR) associated with such factors.
At of the end of September 2025, compared to December 2024, no alerts were presented for any of the investments subject to country risk. Likewise, there were no downgrades in the country risk ratings. The portfolio of investments subject to country risk evaluation have had reallocation of investment companies within Grupo Cibest. Additionally, during the year, there has been a currency revaluation, which has had a lesser impact on the value of investments. However, this effect has been partially offset by the growth in profits.
a.Credit Quality Analysis - Loans and Financial Leases
The Bank´s loan portfolio as of September 2025, compared to December 2024, showed a slight increase of 0.2% in the consolidated portfolio balance in pesos. This growth was achieved despite the revaluation of the peso against the dollar, which impacted the portfolio’s value when expressed in that currency. However, the increase in disbursements by the Group, particularly in the commercial loan portfolio in Colombia El Salvador, and Guatemala, combined with the positive dynamics in the mortgage and consumer loan portfolios in Colombia, contributed to maintaining portfolio stability.
The 30-day past due loan ratio (consolidated) at stood at 4.71% as of September 2025, showing a decrease compared to 5.20% in December 2024. The level of the bank´s non-performing loans was mainly impacted by the improvement in the quality of the retail loan portfolios across the regions where the Group operates, and the commercial loan portfolio in Colombia. The management of all portfolios continues across the different stages of the credit cycle to anticipate the materialization of risks, reflecting positive outcomes from the portfolio containment and recovery strategies designed and implemented.
Special Customer Administration
The Group implements proactive management in monitoring the credit risk of its clients, accompanied by extraordinary diagnostic spaces, early warning alert mechanisms, and general action strategies for client inclusion and follow-up.
As part of the monitoring strategies, the Group has established a periodic committee to identify and manage risk situations arising from events that could potentially lead to a deterioration in the debtor's repayment capacity. This committee facilitates tailored solutions based on the circumstances of each client.
The amount and allowance of customer included in the described watch list, as of June 30, 2025 and December 2024 is shown below:
September 30, 2025
F-81
| Watch List | |||
|---|---|---|---|
| Million COP | |||
| Risk Level | Amount | % | Allowance |
| Level 1 – Low Risk | 12,847,481 | 0.76% | 97,923 |
| Level 2 – Medium Risk | 4,883,275 | 11.52% | 562,564 |
| Level 3 – High Risk | 1,710,278 | 55.85% | 955,147 |
| Level 4 – High Risk | 6,790,906 | 61.02% | 4,143,918 |
| Total | 26,231,940 | 21.96% | 5,759,552 |
December 31, 2024
| Watch List | |||
|---|---|---|---|
| In millions of COP | |||
| Risk Level | Amount | % | Allowance |
| Level 1 – Low Risk | 14,081,182 | 0.72% | 101,994 |
| Level 2 – Medium Risk | 5,708,673 | 6.50% | 370,892 |
| Level 3 – High Risk | 3,811,886 | 53.84% | 2,052,135 |
| Level 4 – High Risk | 5,948,366 | 61.67% | 3,668,615 |
| Total | 29,550,107 | 20.96% | 6,193,636 |
b.Risk Concentration – Loans and Advances
•Concentration of loan by maturity
F-82
The following table shows the ranges of maturity for the credit loans and financial leases, according for the remaining term for the completion of the contract of loans and financial leases at the end of September 2025 and December 2024:
| September 30, 2025 | |||||
|---|---|---|---|---|---|
| In millions of COP | |||||
| Maturity | Less Than 1 Year | Between 1 and 5 Years | Between 5 and 15 Years | Greater Than 15 Years | Total |
| Commercial | 46,046,381 | 63,544,421 | 40,907,748 | 692,864 | 151,191,414 |
| Corporate | 28,238,616 | 38,002,329 | 21,836,526 | 311,009 | 88,388,480 |
| SME | 4,843,731 | 8,611,588 | 1,568,438 | 91,584 | 15,115,341 |
| Others | 12,964,034 | 16,930,504 | 17,502,784 | 290,271 | 47,687,593 |
| Consumer | 1,425,143 | 34,934,311 | 19,045,039 | 762,073 | 56,166,566 |
| Credit card | 261,687 | 10,157,653 | 2,132,043 | — | 12,551,383 |
| Vehicle | 116,159 | 3,063,339 | 2,338,028 | 858 | 5,518,384 |
| Order of payment | 49,645 | 2,203,832 | 7,101,552 | 538,110 | 9,893,139 |
| Others | 997,652 | 19,509,487 | 7,473,416 | 223,105 | 28,203,660 |
| Mortgage | 78,730 | 1,063,649 | 10,816,665 | 30,981,173 | 42,940,217 |
| VIS | 17,872 | 294,822 | 2,889,392 | 13,775,955 | 16,978,041 |
| Non-VIS | 60,858 | 768,827 | 7,927,273 | 17,205,218 | 25,962,176 |
| Finanacial Leases | 1,211,116 | 8,529,923 | 14,016,985 | 4,030,318 | 27,788,342 |
| Small business loans | 264,515 | 1,339,206 | 258,738 | 23,625 | 1,886,084 |
| Total gross loans and financial leases | 49,025,885 | 109,411,510 | 85,045,175 | 36,490,053 | 279,972,623 |
F-83
| December 31, 2024 | |||||
|---|---|---|---|---|---|
| In millions of COP | |||||
| Maturity | Less Than 1 Year | Between 1 and 5<br><br>Years | Between 5 and 15<br><br>Years | Greater Than 15<br><br>Years | Total |
| In millions of COP | |||||
| Commercial | 48,186,159 | 62,610,478 | 41,614,622 | 841,552 | 153,252,811 |
| Corporate | 29,076,028 | 32,243,275 | 23,454,114 | 504,876 | 85,278,293 |
| SME | 4,771,087 | 8,555,996 | 1,727,911 | 148,502 | 15,203,496 |
| Others | 14,339,044 | 21,811,207 | 16,432,597 | 188,174 | 52,771,022 |
| Consumer | 1,267,269 | 34,216,968 | 19,553,651 | 777,795 | 55,815,683 |
| Credit card | 234,325 | 9,587,518 | 2,170,668 | - | 11,992,511 |
| Vehicle | 81,066 | 3,270,554 | 2,283,873 | 365 | 5,635,858 |
| Order of payment | 47,981 | 2,261,874 | 7,525,578 | 545,814 | 10,381,247 |
| Others | 903,897 | 19,097,022 | 7,573,532 | 231,616 | 27,806,067 |
| Mortgage | 79,304 | 1,095,329 | 10,509,429 | 30,057,539 | 41,741,601 |
| VIS | 14,439 | 284,872 | 2,540,655 | 13,343,314 | 16,183,280 |
| Non-VIS | 64,865 | 810,457 | 7,968,774 | 16,714,225 | 25,558,321 |
| Financial Leases | 1,804,964 | 8,586,693 | 13,202,556 | 3,697,391 | 27,291,604 |
| Small business loans | 194,013 | 919,392 | 208,405 | 30,399 | 1,352,209 |
| Total gross loans and financial leases | 51,531,709 | 107,428,860 | 85,088,663 | 35,404,676 | 279,453,908 |
______________________________________________________
2VIS: Social Interest Homes, corresponds to mortgage loans granted by the financial institutions of amounts less than 135 minimum wages.
•Concentration by past due days
The following table shows the loans and financial leases according to past due days for the periods ending on September 30, 2025 and December 31, 2024. Loans or financial leases are considered past due if it is more than one month overdue (i.e. 31 days):
| September 30, 2025 | ||||||
|---|---|---|---|---|---|---|
| In millions of COP | ||||||
| Past-due | ||||||
| Period | 0 - 30 Days | 31 - 90 Days | 91 - 120 Days | 121 - 360 Days | More Than 360 Days | Total |
| Commercial | 145,294,551 | 534,066 | 195,440 | 1,473,431 | 3,693,926 | 151,191,414 |
| Consumer | 52,914,335 | 1,293,423 | 417,577 | 1,282,374 | 258,857 | 56,166,566 |
| Mortgage | 39,969,854 | 1,157,303 | 272,918 | 595,180 | 944,962 | 42,940,217 |
| Financial Leases | 26,898,302 | 224,516 | 38,690 | 224,352 | 402,482 | 27,788,342 |
| Small Business Loan | 1,719,495 | 69,367 | 17,869 | 40,312 | 39,041 | 1,886,084 |
| Total | 266,796,537 | 3,278,675 | 942,494 | 3,615,649 | 5,339,268 | 279,972,623 |
F-84
| December 31, 2024 | ||||||
|---|---|---|---|---|---|---|
| In millions of COP | ||||||
| Past-due | ||||||
| Period | 0 - 30 Days | 31 - 90 Days | 91 - 120 Days | 121 - 360 Days | More Than 360<br><br>Days | Total |
| Commercial | 147,402,632 | 531,609 | 280,750 | 1,515,324 | 3,522,496 | 153,252,811 |
| Consumer | 51,393,527 | 1,761,496 | 624,945 | 1,776,361 | 259,354 | 55,815,683 |
| Mortgage | 38,560,253 | 1,184,755 | 285,466 | 830,743 | 880,384 | 41,741,601 |
| Financial Leases | 26,331,118 | 247,056 | 58,435 | 273,619 | 381,376 | 27,291,604 |
| Small Business Loans | 1,242,568 | 36,196 | 8,848 | 45,608 | 18,989 | 1,352,209 |
| Total | 264,930,098 | 3,761,112 | 1,258,444 | 4,441,655 | 5,062,599 | 279,453,908 |
•Concentration of loans by economic sector
The following table contains the detail of the portfolio of loans and financial leases by main economic activity of the borrower for the periods ending on September 30, 2025 and December 31, 2024:
| September 30, 2025 | |||
|---|---|---|---|
| In millions of COP | |||
| Economic sector | Loans and advances | ||
| Local | Foreign | Total | |
| Agriculture | 5,235,482 | 1,953,209 | 7,188,691 |
| Petroleum and Mining Products | 2,189,267 | 480,411 | 2,669,678 |
| Food, Beverages and Tobacco | 8,240,479 | 2,325,007 | 10,565,486 |
| Chemical Production | 4,916,036 | 388,885 | 5,304,921 |
| Government | 10,989,959 | 348,370 | 11,338,329 |
| Construction | 13,474,065 | 9,055,065 | 22,529,130 |
| Commerce and Tourism | 26,624,021 | 6,302,455 | 32,926,476 |
| Transport and Communications | 12,070,317 | 502,812 | 12,573,129 |
| Public Services | 14,509,435 | 1,396,674 | 15,906,109 |
| Consumer Services | 65,073,914 | 31,874,228 | 96,948,142 |
| Commercial Services | 33,010,467 | 14,559,135 | 47,569,602 |
| Other Industries and Manufactured Products | 9,362,028 | 5,090,902 | 14,452,930 |
| Total | 205,695,470 | 74,277,153 | 279,972,623 |
F-85
| December 31, 2024 | |||
|---|---|---|---|
| In millions of COP | |||
| Economic sector | Loans and advances | ||
| Local | Foreign | Total | |
| Agriculture | 5,520,414 | 2,813,604 | 8,334,018 |
| Petroleum and Mining Products | 2,126,602 | 636,010 | 2,762,612 |
| Food, Beverages and Tobacco | 10,132,520 | 2,164,911 | 12,297,431 |
| Chemical Production | 4,507,362 | 364,649 | 4,872,011 |
| Government | 10,256,608 | 627,705 | 10,884,313 |
| Construction | 14,441,608 | 9,134,115 | 23,575,723 |
| Commerce and Tourism | 24,920,337 | 8,480,380 | 33,400,717 |
| Transport and Communications | 12,313,907 | 597,216 | 12,911,123 |
| Public Services | 13,253,631 | 1,265,243 | 14,518,874 |
| Consumer Services | 61,263,015 | 35,692,512 | 96,955,527 |
| Commercial Services | 30,662,353 | 13,347,867 | 44,010,220 |
| Other Industries and Manufactured Products | 9,671,905 | 5,259,434 | 14,931,339 |
| Total | 199,070,262 | 80,383,646 | 279,453,908 |
c.Credit Risk Management – Other Financial Instruments:
The portfolio is exposed to credit risks given the probability of incurring losses originated by the default in the payment of a coupon, principal and/or yields/dividends of a financial instrument by its issuer or counterparty. The probability of this type of events materializing may increase if there are scenarios of concentration in few issuers (counterparties) and whose credit performance is reflected by higher risk ratings; likewise, increases in credit risk may occur in scenarios in which the portfolio presents low levels of diversification at the level of type and sector of the counterparties with which financial asset transactions are carried out.
The Group maintains the control and continuous monitoring of the assigned credit risk limits, as well as the consumption thereof. Additionally, the Group follows up and manages alerts on counterparties and issuers of securities, based on public market information and news related to their performance; this allows mitigating the risks of default or reduction of value for the managed positions.
For credit risk management, each of the positions that make up the portfolio of the own position are adjusted to the policies and limits that have been defined and that seek to minimize the exposure to the same:
•Term Limits.
•Credit Limits.
•Counterparty Limits.
•Master Agreement.
•Margin Agreements.
•Counterparty Alerts.
d.Credit Quality Analysis - investment financial instruments:
In order to evaluate the credit quality of a counterparty or issuer (to determine a risk level or profile), the Bank relies on two rating systems: an external one and an internal one, both of which allow to identify a degree of risk differentiated by segment and country and to apply the policies that have been established for issuers or counterparties with different levels of risk, in order to limit the impact on liquidity and/or the income statement of the Group.
F-86
External credit rating system: is divided by the type of rating applied to each instrument or counterparty; in this way the geographic location, the term and the type of instrument allow the assignment of a rating according to the methodology that each examining agency uses.
Internal credit rating system: The “ratings or risk profiles” scale is created with a range of levels that go from low exposure to high exposure (this can be reported in numerical or alphanumerical scales), where the rating model is sustained by the implementation and analysis of qualitative and quantitative variables at sector level, which according to the relative analysis of each variable, determine credit quality; in this way the internal credit rating system aims to establish adequate margin in decision-making regarding the management of financial instruments.
In accordance with the criteria and considerations specified in the internal rating allocation and external credit rating systems methodologies, the following schemes of relation can be established, according to credit quality given to each one of the qualification scales:
Low Risk: All investment grade positions (from AAA to BBB-), as well as those issuers that according to the information available (financial statements, relevant information, external ratings, CDS, among others) reflect adequate credit quality.
Medium Risk: All speculative grade positions (from BB+ to BB-), as well as those issuers that according to the available information (Financial statements, relevant information, external qualifications, CDS, among others) reflect weaknesses that could affect their financial situation in the medium term.
High Risk: All positions of speculative grade (from B+ to D), as well as those issuers that according to the information available (Financial statements, relevant information, external qualifications, CDS, among others) reflect a high probability of default of financial obligations or that already have failed to fulfill them.
The credit risk rating of the Republic of Colombia was downgraded following the latest reports issued on June 26 by Moody’s (to Baa3) and S&P (to BB). As a result, positions in Colombian sovereign debt and Colombian issuers have been reclassified to the medium-risk category, aligning them with S&P's risk perception (BB).
Credit Quality Analysis of the Bank
| Maximum Exposure to Credit Risk | ||||||||
|---|---|---|---|---|---|---|---|---|
| In millions of COP | ||||||||
| Debt instruments | Equity | Other financial instruments(1) | Derivatives(2) | |||||
| September 30, 2025 | December 31, 2024 | September 30, 2025 | December 31, 2024 | September 30, 2025 | December 31, 2024 | September 30, 2025 | December 31, 2024 | |
| Low Risk | 6,800,916 | 29,130,380 | 7 | 363,198 | — | 1,712 | 550,826 | 834,821 |
| Medium Risk | 29,754,680 | 4,873,025 | 1,039,203 | 57,119 | 17,479 | 16,479 | 582,405 | 1,154 |
| High Risk | 1,748,589 | 2,580,107 | 4,632 | 677 | — | 2,966 | 9,694 | 7,086 |
| Without Rating | — | 377,835 | 590,316 | 11,771 | 13,228 | 18,555 | 86,437 | |
| Total | 38,304,185 | 36,583,512 | 1,421,677 | 1,011,310 | 29,250 | 34,385 | 1,161,480 | 929,498 |
(1)Corresponds to SAFE "Simple Agreement for Future Equity".
(2)For derivatives transactions counterparty risk is disclosed as long as the valuation is positive.
F-87
Risk exposure by credit rating
| Maximum Exposure to Credit Risk | ||
|---|---|---|
| In millions of COP | ||
| Other financial instruments(1) | ||
| September 30, 2025 | December 31, 2024 | |
| Sovereign Risk | 15,858,535 | 14,487,622 |
| AAA | 641,546 | 10,113,581 |
| AA+ | 5,286,208 | 4,714,501 |
| AA | 99,628 | 770,266 |
| AA- | 166,155 | 68,124 |
| A+ | 169,502 | 906,847 |
| A | 447,253 | 465,978 |
| A- | 115,245 | 352,619 |
| BBB+ | 49,909 | 587,802 |
| BBB | 119,658 | 221,092 |
| BBB- | 256,645 | 219,676 |
| BB+ | 12,851,318 | 2,824,168 |
| BB | 2,397,909 | 1,674,226 |
| BB- | 286,005 | 347,253 |
| Other | 1,762,915 | 114,969 |
| Not rated | 408,161 | 689,981 |
| Total | 40,916,592 | 38,558,705 |
(1) Internal homologation.
•Financial credit quality of other financial instruments that are not in default nor impaired in value
Debt instruments: 100% of the debt instruments are not in default.
Equity: The positions do not represent significant risks.
Derivatives: 99.9% of the credit exposure does not present incidences of material default. The remaining percentage corresponds to default events at the end of the period.
F-88
•Maximum exposure level to the credit risk given:
| Maximum Exposure to Credit Risk | ||||||
|---|---|---|---|---|---|---|
| In millions of COP | ||||||
| Maximum Exposure | Collateral | Net Exposure | ||||
| September 30, 2025 | December 31, 2024 | September 30, 2025 | December 31, 2024 | September 30, 2025 | December 31, 2024 | |
| Debt instruments | 38,304,185 | 36,583,512 | (3,326,226) | (1,669,011) | 34,977,959 | 34,914,501 |
| Derivatives ** | 1,161,480 | 929,498 | 647,248 | 589,098 | 514,232 | 340,400 |
| Equity | 1,421,677 | 1,011,310 | — | — | 1,421,677 | 1,011,310 |
| Other financial instruments | 29,250 | 34,385 | — | — | 29,250 | 34,385 |
| Total | 40,916,592 | 38,558,705 | (3,973,474) | (2,258,109) | 36,943,118 | 36,300,596 |
Note: In derivatives, positive collateral are received from counterparties and collateral negative are delivered to counterparties. Derivative collateral received from counterparties, whose have their market value positive when consolidate all the portfolio derivaties of related ID, in December 2024 was COP 589,098 and in September 2025 was COP 647,248. In debt securities, guarantees correspond to Repo, reverse repo, and securities lending trades.
Collateral- other financial instruments
Level of collateral: respect to the type of asset or operation, a collateral level is determined according to the policies defined for each product and the market where the operation is carried out.
Assets held as collateral in organized markets: the only assets that can be received as collateral are those defined by the central counterparties, the stock market where the operation is negotiated, those assets that are settled separately in different contracts or documents, which can be managed by each organization and must comply with the investment policies defined by the Group, taking into account the credit limit for each type of asset or operation received or delivered, which collateral received are the best credit quality and liquidity.
Assets received as bilateral collateral between counterparties: the collateral accepted in international OTC derivative operations is agreed on bilaterally in the Credit Support Annex (CSA)1 and with fulfillment in cash in dollars and managed by Citibank N.A.. This entity acts as the independent third party in international margin calls, enabling more efficient management of the collateral provided and received in the course of investment activities involving derivative instruments.
Collateral adjustments for margin agreements: The adjustments will be determined by the criteria applied by both the external and internal regulations in effect, and at the same time, mitigation standards are maintained so that the operation fulfills the liquidity and solidity criteria for settlement.
e.Credit risk concentration - other financial instruments:
At the end of the period, the Group's positions did not exceed the concentration limit.
1 A Credit Support Annex (CSA) provides credit protection by setting forth the rules governing the mutual posting of collateral. CSAs are used in documenting collateral arrangements between two parties that trade privately negotiated (over-the-counter) derivative securities. The trade is documented under a standard contract called a master agreement, developed by the International Swaps and Derivatives Association (ISDA).
F-89
Market risk
Grupo Cibest currently measure the treasury book exposure to market risk (including OTC derivatives positions) as well as the currency risk exposure of the banking book, which is provided to the Treasury Division, using a VaR methodology established in accordance with “Chapter XXXI of the Basic Accounting and Financial Circular”, issued by the Financial Superintendence of Colombia.
The VaR methodology established by “Chapter XXXI of the Basic Accounting and Financial Circular” is based on the model recommended by the Amendment to the Capital Accord to Incorporate Market Risks of Basel Committee of 2005, which focuses on the treasury book and excludes those investments classified as amortized cost which are not being given as collateral and any other investment that comprises the banking book. In addition, the methodology aggregates all risks by the use of correlations, through an allocation system based on defined zones and bands, affected by given sensitivity factors.
Grupo Cibest use different models with the purpose of measure risk exposure and the portfolio diversification effect, the main metrics are: i) the standard methodology required by the Financial Superintendence of Colombia, is established by “Chapter XXXI of the Basic Accounting Circular”, and ii) the internal methodology of historical weighted simulation, which use a confidence level of 99%, a holding period of 10 days, a time frame of 250 business days and hierarchical VaR limits.
The guidelines and principles of the Group´s Market Risk Management have been keeping in accordance with disclose of December 31, 2024.
Total market risk exposure decreased by 28.7%, from COP 1,697,566 in December 2024 to COP 1,210,823 in September 2025. This variation is primarily explained by a lower exposure to the foreign exchange risk factor, due to a reduction in positions denominated in U.S. dollars. Conversely, the interest rate risk factor increased, driven by higher exposure to private debt securities in Colombia and foreign currency interest rate derivatives. The stock price risk factor also rose, associated with greater exposure to equity instruments within the Valores Bancolombia’s portfolio. Lastly, the collective investment funds risk factor recorded an increase, explained by the appreciation of the Colombia Inmobiliario Fund.
The following table presents the total change in market risk and other risk factors:
| September 2025 | ||||
|---|---|---|---|---|
| In millions of COP | ||||
| Factor | End of Period | Average | Maximum<br><br>January, 2025 | Minimum<br><br>April, 2025 |
| Interest rate | 596,840 | 556,767 | 499,712 | 524,034 |
| Exchange rate | 166,585 | 308,454 | 751,796 | 79,062 |
| Stock price | 383,929 | 375,620 | 367,615 | 375,015 |
| Collective investment funds | 63,469 | 41,878 | 35,781 | 36,608 |
| Total Value at Risk | 1,210,823 | 1,282,719 | 1,654,904 | 1,014,719 |
F-90
| December 2024 | ||||
|---|---|---|---|---|
| In millions of COP | ||||
| Factor | End of Period | Average | Maximum<br><br>November, 2025 | Minimum<br><br>January, 2025 |
| Interest rate | 540,397 | 507,425 | 586,194 | 453,240 |
| Exchange rate | 764,920 | 554,900 | 759,703 | 364,421 |
| Stock price | 360,287 | 351,134 | 356,794 | 346,694 |
| Collective investment funds | 31,962 | 25,653 | 31,473 | 18,005 |
| Total Value at Risk | 1,697,566 | 1,439,112 | 1,734,164 | 1,182,360 |
*As of September 30, 2025, the proprietary cryptocurrency portfolio of Wenia amounted to USD 1.45, with a Value at Risk (VaR) of USD 11.3 thousand. The VaR was calculated using an internal methodology based on a Dinamic Conditional Correlation (DCC) GARCH model, with a one-day time horizon and a 99% of confidence level.
On the other hand, regarding the VaR measured with the internal, no relevant variations were identified in the VaR metrics at the end of the quarter, nor were any exceedances of the approved limits.
This exposure has been permanently monitored by the Board of Directors and is an input for the decision-making process to preserve the stability in the Group.
Non-trading instruments market risk measurement
The banking book’s relevant risk exposure is interest rate risk, which is the probability of unexpected changes in net interest income or in the economic value of equity as a result of a change in market interest rates. Changes in interest rates affect the Group’s earnings because of timing differences on the repricing of the assets and liabilities. The Group manages the interest rate risk arising from banking activities in non-trading instruments by analyzing the interest rate mismatches between its interest earning assets and its interest bearing liabilities, and estimates the impact on the net interest income and the economic value of equity. The foreign currency exchange rate exposures arising from the banking book are provided to the Treasury Division where these positions are aggregated and managed.
•Interest Risk Exposure (Banking Book)
The Group has performed a sensitivity analysis of market risk sensitive instruments estimating the impact on the net interest income of each position in the banking book, using a repricing model and assuming positive parallel shifts of 100 basis points (bps).
The table 1 provides information about Group’s interest rate sensitivity for the statement of financial position items comprising the banking book.
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Table 1. Sensitivity to Interest Rate Risk of the Banking Book
The chart below provides information about Group’s interest rate risk sensitivity in local currency (COP) at September 30, 2025 and December 31, 2024:
| September 30, 2025 | December 31, 2024 | |
|---|---|---|
| In millions of COP | ||
| Assets sensitivity 100 bps | 1,381,605 | 1,262,776 |
| Liabilities sensitivity 100 bps | 1,071,075 | 915,528 |
| Net interest income sensitivity 100 bps | 310,530 | 347,248 |
The chart below provides information about Group’s interest rate risk sensitivity in foreign currency (US dollars) at December 31, 2024 and September 30, 2025:
| December 31, 2024 | |
|---|---|
| In thousands of | |
| Assets sensitivity 100 bps | 76,219 |
| Liabilities sensitivity 100 bps | 83,051 |
| Net interest income sensitivity 100 bps | (6,832) |
All values are in US Dollars.
A positive net sensitivity denotes a higher sensitivity of assets than of liabilities and implies that a rise in interest rates will positively affect the Group´s net interest income. A negative sensitivity denotes a higher sensitivity of liabilities than of assets and implies that a rise in interest rates will negatively affect the Group´s net interest income. In the event of a decrease in interest rates, the impacts on net interest income would be opposite to those described above.
Total Exposure:
As of September 30, 2025, the net sensitivity of the banking book in local currency to parallel shifts of 100 basis points in interest rates was COP 310,530, representing a decrease of COP 36,718 compared to December 2024. This reduction is mainly due to the increase in the balance of Term Deposit Certificates (CDTs) with maturities of less than one year and the continued implementation of hedging strategies.
On the other hand, the sensitivity of the Net Interest Margin (NIM) in foreign currency to a parallel shift of 100 basis points in interest rates decreased by USD 7.2 million between December 31, 2024, and September 30, 2025, reaching USD 0.4 million. This increase is mainly explained by the growth of the loan portfolio in Banistmo, Bancolombia Panama, and Bancoagrícola, an effect that was partially offset by the rise in deposit accounts and Term Deposit Certificates (CDTs) across all entities.
•Assumptions and Limitations
Net interest income sensitivity analysis is based on the repricing model and considers the following key assumptions: (a) does not consider prepayments for Banistmo, Bam, Bancolombia Panamá, Bancolombia Puerto Rico y Bancoagrícola, new operations, defaults, etc., (b); the fixed rate instruments sensitivity, includes the amounts with maturity lower than one year and assumes these will be disbursed at market interest rates and (c) changes in interest rate occur immediately and parallel in the yield curves from assets and liabilities for different maturities.
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Liquidity risk
Liquidity risk refers to the possibility of not being able to efficiently and timely meet payment obligations, both expected and unexpected, present and future, without affecting the normal course of daily operations or the financial condition of the entity. This risk occurs when there is a shortage of available liquid assets or when it is necessary to assume unusual financing costs.
During the analysis period, the Cibest Group maintained sufficient liquidity levels, enabling it to comply with all internal and regulatory indicators. Likewise, liquidity monitoring did not report any alerts indicating potential risk, and liquid assets comfortably exceeded the limits established to cover the Group's requirements.
a.Liquidity risk exposure
To estimate liquidity risk, a liquidity coverage ratio is calculated to ensure that the liquid assets held are sufficient to cover potential net cash outflows over 30 days. This ratio enables the Group to meet its liquidity coverage requirements for the coming month. The liquidity coverage ratio is presented as follows:
| Liquidity Coverage Ratio | September 30, 2025 | December 31, 2024 |
|---|---|---|
| Net cash outflows into 30 days | 21,194,724 | 23,887,074 |
| Liquid Assets | 53,748,542 | 59,617,840 |
| Liquidity coverage ratio(1) | 253.59 % | 249.58 % |
The coverage ratio increased from 249.58% in December 2024 to 253.59% in September 2025.This variation reflects an improvement in the ability of liquid assets to support liquidity requirements. The decrease in both liquidity requirements and liquid assets in Colombian pesos is explained by the revaluation of the peso against the dollar. Liquid assets in U.S. dollars increased, mainly due to the rise in deposit accounts at Bancoagrícola.
b.Liquid Assets
One of Grupo Cibest’s main guidelines is to maintain a strong liquidity position. Accordingly, the Risk Committee has approved a methodology for determining the minimum level of liquid assets, calculated based on liquidity requirements. This approach aims to ensure the proper functioning of banking and financial service activities—such as loan disbursements and deposit withdrawals—while protecting capital and taking advantage of market opportunities.
The following table shows the liquid assets held by the Group:
| Liquid Assets(1) | September 30, 2025 | December 31, 2024 |
|---|---|---|
| High quality liquid assets(2) | ||
| Cash | 25,652,359 | 27,931,834 |
| High quality liquid securities | 21,365,801 | 24,862,861 |
| Other Liquid Assets | ||
| Other securities(3) | 6,730,382 | 6,823,145 |
| Total Liquid Assets | 53,748,542 | 59,617,840 |
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(1) Liquid Assets:Liquid assets are those that are easily realizable and form part of the entity's portfolio, or those received as collateral in active money market operations, provided they have not been subsequently used in passive money market operations and are free from any mobility restrictions. This category includes: cash, holings in open-ended collective investment funds without a minimum holding period, and negotiable investments available for sale in fixed-income securities.
(2) High-Quality Securities:These include cash and liquid assets accepted by the Central Bank for its monetary expansion and contraction operations.
(3) Other Liquid Assets:This category includes liquid assets that do not meet the quality criteria mentioned above.
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Document
CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS FOR THE NINE-MONTH AND THREE-MONTHS PERIOD ENDED SEPTEMBER 30, 2025 AND 2024
CONDENSED SEPARATE INTERIM STATEMENT OF FINANCIAL POSITION
GRUPO CIBEST S.A.
As of September 30, 2025 and December 31, 2024
(Stated in millions of Colombian pesos)
| Note | September 30, 2025* | December 31, 2024 | |
|---|---|---|---|
| ASSETS | - | - | - |
| Cash and cash equivalents | 3 | 53,305 | - |
| Amortized cost investments | 4 | 1,067,035 | - |
| Equity financial instruments | 4.1 | 7,640 | 38 |
| Financial assets investments | - | 1,074,675 | 38 |
| Investment in subsidiaries | 5 | 45,325,374 | - |
| Investment in associates and joint ventures | 6 | 52,365 | - |
| Other assets | - | 1,836 | - |
| TOTAL ASSETS | - | 46,507,555 | 38 |
| LIABILITIES AND EQUITY | - | - | - |
| LIABILITIES | - | - | - |
| Borrowings from other financial institutions | 8 | 1,454,330 | - |
| Preferred shares | 9 | 568,928 | - |
| Current tax | 7 | 8,497 | - |
| Deferred tax, net | 7.4 | 1,556,210 | - |
| Other liabilities | - | 51,587 | - |
| TOTAL LIABILITIES | - | 3,639,552 | - |
| EQUITY | - | - | - |
| Share capital | 10 | 480,914 | - |
| Additional paid-in capital | - | 37 | 37 |
| Appropriated reserves | 11 | 10,734,742 | - |
| Retained earnings | - | 22,110,808 | - |
| Net profit | - | 5,600,635 | 1 |
| Accumulated other comprehensive income, net of tax | - | 3,940,867 | - |
| TOTAL EQUITY | - | 42,868,003 | 38 |
| TOTAL LIABILITIES AND EQUITY | - | 46,507,555 | 38 |
* Includes the effects of the partial spin-off from Bancolombia S.A. to Grupo Cibest S.A. See Note 1 – Reporting Entity.
The accompanying notes form an integral part of these separate financial statements.
CONDENSED SEPARATE INTERIM STATEMENT OF INCOME
GRUPO CIBEST S.A.
For the nine-month and three-month period ended September 30, 2025 (Stated in millions of Colombian pesos)
| Accumulated | Quarterly | ||||
|---|---|---|---|---|---|
| Note | As of September 30, 2025* | As of September 30, 2024 | July 1 to September 30, 2025 | July 1 to September 30, 2024 | |
| Equity method subsidiaries | 12.1 | 5,663,539 | - | 2,069,325 | - |
| Equity method of associates and joint ventures | 12.1 | 11,307 | - | 4,813 | - |
| Equity instruments | 12.1 | 88 | - | 88 | - |
| Dividends | 12.1 | 5 | - | - | - |
| Equity method net income | 5,674,939 | - | 2,074,226 | - | |
| Other income | 12.2 | 43,293 | - | 27,587 | - |
| Total income, net | 5,718,232 | - | 2,101,813 | - | |
| Operating expenses | - | - | - | - | |
| Salaries and employee benefits | (4,207) | - | (3,379) | - | |
| Interest expenses | 13.1 | (78,688) | - | (35,440) | - |
| Administrative and general expenses | 13.2 | (17,359) | - | (2,539) | - |
| Impairment of investment at amortized cost | (109) | - | 271 | - | |
| Operating expenses, net | (100,363) | - | (41,087) | - | |
| Operating income | 5,617,869 | - | 2,060,726 | - | |
| Income tax | 7 | (17,234) | - | (8,936) | - |
| Net income | 5,600,635 | - | 2,051,790 | - |
* Includes the effects of the partial spin-off from Bancolombia S.A. to Grupo Cibest S.A. See Note 1 – Reporting Entity.
The accompanying notes form an integral part of these separate financial statements.
CONDENSED SEPARATE INTERIM STATEMENT OF COMPREHENSIVE INCOME
GRUPO CIBEST S.A.
For the nine-month and three-month period ended September 30, 2025 (Stated in millions of Colombian pesos)
| Accumulated | Quarterly | ||||
|---|---|---|---|---|---|
| Note | As of September 30, 2025* | As of September 30, 2024 | July 1 to September 30, 2025 | July 1 to September 30, 2024 | |
| Net income | 5,600,635 | - | 2,051,790 | - | |
| Other comprehensive income to be reclassified to the income statement | - | - | |||
| Gain on valuation of financial instruments | 4.1 | 1,796 | - | 94 | - |
| Related tax | 7.3 | (461) | - | (18) | - |
| Net of tax amount | 1,335 | - | 76 | - | |
| Surplus from equity method | - | - | |||
| Effects by mergers and spin-off operations | 9,372,589 | - | - | - | |
| Unrealized gain/(loss) on investments in subsidiaries using equity method (1) | 5 | (1,473,824) | - | (682,238) | - |
| Gain/(loss) on valuation of investments in associates and joint ventures | 6 | (264) | - | (216) | - |
| Net of tax amount | 7,898,501 | - | (682,454) | - | |
| Effects of hedge accounting application | - | - | |||
| Effects by mergers and spin-off operations and net investment hedge in a foreign operation | (4,028,670) | - | - | - | |
| (Loss) gain on hedge of net investment in a foreign operation | 107,233 | - | 52,456 | - | |
| Income tax | 7.3 | (37,532) | - | (18,360) | - |
| Net of tax amount | (3,958,969) | - | 34,096 | - | |
| Total other comprehensive income to be reclassified to profit or loss | 3,940,867 | - | (648,282) | - | |
| Other comprehensive income, net of taxes | 3,940,867 | - | (648,282) | - | |
| Total comprehensive income | 9,541,502 | - | 1,403,508 | - |
* Includes the effects of the partial spin-off from Bancolombia S.A. to Grupo Cibest S.A. See Note 1 – Reporting Entity. As of the
end of September 2024, Cibest had no operations.
(1) This amount corresponds to OCI of subsidiary investments in COP (1,390,937) and homologation of the standard for COP (82,887).
The accompanying notes form an integral part of these separate financial statements.
CONDENSED SEPARATE INTERIM STATEMENT OF CHANGES IN EQUITY
GRUPO CIBEST S.A.
For the nine-months period ended September 30, 2025
(Stated in millions of Colombian pesos, except per share amounts stated in pesos)
| Reserves (Note 11) | Accumulated other comprehensive income | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Note | Share capital (Note 10) | Additional<br><br>paid in capital | Appropriated reserves | Discretionary reserve | Reserve for share repurchase | Total reserves | Financial instruments | Equity method surplus | Total other comprehensive income, net | Retained earnings | Profit for the year | Total equity | |
| Equity as of January 1, 2025 | - | - | 37 | - | - | - | - | - | - | - | - | 1 | 38 |
| Effects of the partial absorption-type spin-off from Bancolombia S.A. to Grupo Cibest S.A. (*) | 1 | 480,914 | - | 9,928,816 | 1,166,556 | - | 11,095,372 | 1,333 | 5,343,919 | 5,345,252 | 20,188,835 | 2,338,007 | 39,448,380 |
| Reserve for equity strengthening and future growth. | 11 | - | - | (1,350,000) | - | 1,350,000 | - | - | - | - | - | - | - |
| Share repurchase | 11 | - | - | - | - | (360,630) | (360,630) | - | - | - | - | - | (360,630) |
| Equity method from participation in subsidiaries, associates and joint ventures. | 5 | - | - | - | - | - | - | - | - | - | (29,445) | - | (29,445) |
| Others (1) | - | - | - | - | - | - | - | - | - | - | 1,951,418 | - | 1,951,418 |
| Income for the year | - | - | - | - | - | - | - | - | - | - | - | 3,262,627 | 3,262,627 |
| Other comprehensive income (2) | - | - | - | - | - | - | - | 2 | (1,404,387) | (1,404,385) | - | - | (1,404,385) |
| Assets as of June 30, 2025 | - | 480,914 | 37 | 8,578,816 | 1,166,556 | 989,370 | 10,734,742 | 1,335 | 3,939,532 | 3,940,867 | 22,110,808 | 5,600,635 | 42,868,003 |
* Includes the effects of the partial spin-off from Bancolombia S.A. to Grupo Cibest S.A. See Note 1 – Reporting Entity.
(1) Effect on retained earnings due to the alignment of accounting policies from local regulations to Full IFRS.
(2) The amount includes Other Comprehensive Income (OCI) from equity investments (COP 1,474,088), financial instrument for COP 2, net investment hedge in a foreign business for COP 107,233 and associated deferred tax of COP (37,532).
The accompanying notes form an integral part of these separate financial statements.
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CONDENSED SEPARATE INTERIM STATEMENT OF CASH FLOW
GRUPO CIBEST S.A.
For the nine-months period ended September 30, 2025
(Stated in millions of Colombian pesos)
| Nota | September 30, 2025 * | September 30, 2024 | |
|---|---|---|---|
| Net income | 5,600,635 | - | |
| Adjustments to reconcile net income to net cash: | |||
| Equity method – subsidiaries | 12.1 | (5,663,539) | - |
| Equity method – associates and joint ventures | 12.1 | (11,307) | - |
| Accrued interest – virtual investment | 12.1 | (38,457) | - |
| Valuation of equity instruments | 12.1 | (88) | - |
| Foreign exchange differences | (2,131) | - | |
| Preferred share interest | 13.1 | 42,425 | - |
| Financial obligations interest | 13.1 | 36,263 | - |
| Income tax | 7 | 17,234 | - |
| Impairment of investments | 109 | - | |
| Changes in operating assets and liabilities: | - | - | |
| Increase in other assets | (152) | - | |
| Change in other liabilities | 2,536 | - | |
| Income tax advance | (1,683) | - | |
| Net cash provided by (used in) operating activities | (18,155) | - | |
| Cash flows from investment activities | |||
| Dividends received | 5,412 | - | |
| Opening of investments at amortized cost | (3,492,225) | - | |
| Opening of a liquidity income fund | (3,304) | - | |
| Cash capitalizations in investments in subsidiaries | (68,762) | - | |
| Cancellation of investments at amortized cost | 2,437,475 | - | |
| Interest received from investments at amortized cost | 26,062 | - | |
| Net cash used in investing activities | (1,095,342) | - | |
| Cash flow from financing activities: | |||
| Share buyback | 11 | (360,631) | - |
| Net cash used in financing activities | (360,631) | - | |
| Decrease in cash and cash equivalents, before the effect of exchange rate changes | (1,474,128) | - | |
| Cash received from spin-off | 1,527,432 | - | |
| Decrease in cash | 53,305 | - | |
| Cash at the beginning of the period | - | - | |
| Cash at the end of the period | 53,305 | - |
The accompanying notes form an integral part of these separate financial statements.
* Includes the effects of the partial spin-off from Bancolombia S.A. to Grupo Cibest S.A. See Note 1 – Reporting Entity.
The statement of cash flows includes the following non-cash transactions, which were not reflected in the separate statement of cash flows.
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NOTES TO THE SEPARATE FINANCIAL STATEMENTS
GRUPO CIBEST S.A.
All amounts are expressed in millions and billions (where applicable) of Colombian pesos.
Foreign currency figures are expressed in thousands of the respective currency.
NOTE 1. REPORTING ENTITY
Grupo Cibest S.A., hereinafter “Cibest" it is a listed issuer on the Colombian Stock Exchange (BVC), as well as on the New York Stock Exchange (NYSE), since 2025. Cibest main location is in Medellín (Colombia), main address Carrera 48 # 26-85, Avenida Los Industriales. The company was constituted under the corporate name Grupo Cibest S.A. according to public deed number 10,594 dated September 25, 2024, issued by Notary Office No. 15 of Medellín.
The duration contemplated in the bylaws is until December 8, 2144; however, it may be dissolved or extended before that date.
Cibest’s business purpose is to invest in movable and immovable assets, particularly in shares, equity interests, or any other type of participation in Colombian and/or foreign companies or entities, as well as to manage such investments.
Cibest´s bylaws are formalized in the public deed number 386 dated May 12, 2025, ah the 30th Notary´s Office of Medellín.
Cibest through its subsidiaries has international presence in the United States, Puerto Rico, Panamá, Guatemala, Bermuda, and El Salvador.
Regarding its subsidiaries, on August 27, 2025, the Extraordinary Shareholders’ Meeting of Bancolombia approved the voluntary delisting of its common shares and preferred shares without voting rights from the National Registry of Securities and Issuers (RNVE) and the Colombian Stock Exchange (BVC). Consequently, the BVC formally notified Bancolombia of the delisting, effective as of September 19, 2025.
Additionally, on September 29, 2025, it was announced to the market that the Superintendency of Banks of Panama authorized a corporate reorganization of the Panamanian subsidiary Banistmo S.A. and other subsidiaries of Grupo Cibest in Panama. The reorganization includes the partial spin-off by Valores Banistmo S.A. and Banistmo Capital Markets Group Inc. of certain resource portfolios for the benefit of Sociedad Beneficiaria VB Panamá S.A.; the subsequent merger of
1
Sociedad Beneficiaria VB with Banistmo S.A., the latter being the absorbing company, and the partial spin-off by Banistmo of 100% of its shares in Valores Banistmo for the benefit of Cibest Panamá Assets S.A., a Panamanian company wholly owned by Grupo Cibest.
Once the Corporate Reorganization has been completed, Valores Banistmo S.A. will continue to be a subsidiary of Grupo Cibest, with no change in ultimate shareholders or control structure, and will retain its securities brokerage and investment management licenses, both granted by the Superintendency of the Securities Market of Panama.
On May 12, 2025, Public Deed No. 386 from Notary Office No. 30 of Medellín formalized the partial spin-off agreement whereby Bancolombia S.A. (“Bancolombia”), as the transferring entity, allocated part of its equity to Cibest, as the beneficiary entity, without dissolution.
The transaction was initially disclosed to the market on October 29, 2024, approved at the Extraordinary General Shareholders’ Meeting of Grupo Cibest held on February 20, 2025, and at the Extraordinary General Shareholders’ Meeting of Bancolombia held on April 23, 2025. It was authorized by the Superintendence of Finance of Colombia (“SFC”) through Resolutions No. 0356 dated February 28, 2025, and No. 0901 dated May 7, 2025.
On May 16, 2025, the market was informed of the completion of the corporate transactions aimed at evolving the group’s corporate structure. As a result, Grupo Cibest became the parent holding company of all financial entities and other subsidiaries, including Bancolombia (collectively referred to as the “Grupo Cibest”).
As a result of the completion of these transactions, Bancolombia’s shareholders (excluding Cibest) became shareholders of Cibest. Cibest issued, on their behalf, the same number and class of shares (common shares and preferred dividend shares without voting rights), maintaining the same terms and conditions and ownership percentages they held in Bancolombia. Consequently, their shares in Bancolombia (excluding those held by Cibest) were cancelled. Holders of Bancolombia American Depositary Receipts (“ADR's”) received equivalent ADR's of Cibest, and their Bancolombia ADR's were cancelled.
Cibest’s common shares and preferred shares without voting rights are listed on the Colombian Stock Exchange under the symbols “CIBEST” and “PFCIBEST”, respectively. The ADRs representing preferred shares without voting rights are listed on the New York Stock Exchange under the symbol “CIB”, the same symbol previously used for Bancolombia’s ADRs prior to the corporate restructuring.
Cibest’s common shares, preferred dividend shares without voting rights, and ADR's became eligible for trading as of Monday, May 19, 2025.
At the Extraordinary Shareholders’ Meeting held on June 9, 2025, Cibest approved a share repurchase program for its common shares, preferred shares without voting rights, and ADRs, up to COP 1.35 trillion, for a period of up to one (1) year from the approval of the program’s regulations by the Board of Directors. The shareholders also approved a reallocation of the legal reserve and the creation of a specific reserve for the repurchase program.
On June 24, 2025, the Board of Directors of Cibest regulated this share repurchase program, which began on Thursday, July 17, 2025. In Colombia, it is being carried out on the trading systems of the Colombian Stock Exchange through Valores Bancolombia S.A. Comisionista de Bolsa, and in the United States through an Enhanced Open Market Repurchase executed by Morgan Stanley & Co. LLC. For more information on the progress of the repurchase program, see Note 11. Reserves.
The value of the assets, liabilities, and equity transferred from Bancolombia to Cibest as part of the partial spin-off on May 16, 2025 is as follows:
Statement of Financial Position:
| Value | |
|---|---|
| ASSETS | |
| Cash | 1,527,432 |
| Total equity financial instruments | 4,197 |
| Fiduciary Right – PA Cadenalco 75 Years | 4,197 |
| Investment in subsidiaries | 41,449,137 |
| Bancolombia S.A. | 21,625,229 |
| Banistmo S.A. | 11,125,504 |
| Banagrícola S.A. and subsidiaries | 4,676,277 |
| Grupo Agromercantil Holding S.A. | 3,465,595 |
| Nequi S.A. Finance Company | 45,390 |
| Renting Colombia S.A.S. | 324,563 |
| Negocios Digitales Colombia S.A.S. | 102,321 |
| Wompi S.A.S. | 38,692 |
| Wenia Ltd. | 45,566 |
| Investment in associates and joint ventures | 50,507 |
| Deferred tax assets | 59,373 |
| Other assets, net | 688 |
| TOTAL ASSETS | 43,091,334 |
| LIABILITIES | |
| Borrowings from other financial institutions | 1,527,432 |
| Preferred shares | 545,873 |
| Deferred tax liabilities | 1,569,650 |
| TOTAL LIABILITIES | 3,642,955 |
| TOTAL EQUITY | 39,448,380 |
| TOTAL LIABILITIES AND EQUITY | 43,091,335 |
Statement of income:
| Value | |
|---|---|
| Operating income | |
| Equity method | 2,353,256 |
| Bancolombia S.A. | 2,042,793 |
| Banistmo S.A. | 107,923 |
| Banagrícola S.A. and subsidiaries | 187,878 |
| Grupo Agromercantil Holding S.A. | 38,940 |
| Nequi S.A. Finance Company | (15,646) |
| Renting Colombia S.A.S. | 4,676 |
| Negocios Digitales Colombia S.A.S. | 566 |
| Wompi S.A.S. | 82 |
| Wenia Ltd. | (13,956) |
| Associates and joint ventures | 4,470 |
| Dividends | 5 |
| Total income, net | 2,357,731 |
| Operating expenses | - |
| Interest expense | (19,370) |
| Total expenses | (19,370) |
| Profit before income tax | 2,338,361 |
| Income tax | (337) |
| Net profit | 2,338,024 |
The subsidiaries of Cibest are as follows:
| Company | Country | Corporate purpose | % of interest and voting rights held as of September 2025 |
|---|---|---|---|
| Banistmo S.A. | Panamá | Financial services | 100.00% |
| Banagrícola S.A. and subsidiaries | Panamá | Financial services holding | 99.17% |
| Grupo Agromercantil Holding S.A. | Panamá | Financial services holding | 100.00% |
| Nequi S.A. Finance Company | Colombia | Financial services | 94.99% |
| Renting Colombia S.A.S. | Colombia | Operating lease | 94.58% |
| Negocios Digitales Colombia S.A.S. | Colombia | Payment solutions | 100.00% |
| Wompi S.A.S. | Colombia | Technology services | 100.00% |
| Wenia Ltd. | Bermuda | Technology services | 100.00% |
| Bancolombia S.A. | Colombia | Financial services | 94.50% |
| Inversiones Cibest S.A.S. | Colombia | Investment | 100.00% |
| Cibest Investment Management S.A.S. | Colombia | Investment | 100.00% |
| Valores Cibest S.A.S. | Colombia | Investment | 100.00% |
| Cibest Inversiones Estratégicas S.A.S. | Colombia | Investment | 100.00% |
As of September 30, 2025, Cibest has 21 employees.
NOTE 2. MATERIAL ACCOUNTING POLICIES
A. Basis for preparation of the condensed separate interim financial statements
The condensed separate interim financial statements for the nine-month period ended September 30, 2025 have been prepared in accordance with International Accounting Standard 34 – Interim Financial Reporting (“IAS 34”), issued by the International Accounting Standards Board (IASB).
These condensed separate interim financial statements do not include all the disclosures and information that are typically required in annual financial statements. As these are the entity’s first financial statements, additional information has been incorporated in accordance with the materiality and relevance criteria established by the Accounting and Financial Reporting Standards (NCIF) accepted in Colombia, which are based on the International Financial Reporting Standards (IFRS), pursuant to the Technical Regulatory Framework issued through Decree 2420 of 2015 and its amendments, issued by the Ministry of Finance and Public Credit and the Ministry of Commerce, Industry and Tourism. These financial statements have not been audited.
The preparation of condensed separate interim financial statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported and disclosed amounts in the condensed separate interim financial statements. The estimates and underlying assumptions are reviewed on an ongoing basis. Changes in accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Preparation of the condensed separate interim financial statements undergoing concern basis
Management has assessed Cibest’s ability to continue as a going concern and confirms that Cibest has adequate resources, liquidity and solvency to continue operating the business for the foreseeable future, which is at least, but is not limited to, 12 months from the end of the reporting period. Based on Cibest's liquidity position at the date of authorization of the condensed separate interim financial statements, Management maintains a reasonable expectation that it has adequate liquidity and solvency to continue in operation for at least the next 12 months and that the going concern basis of accounting remains appropriate.
1
The condensed separate interim financial statements were prepared on a going concern basis and do not include any adjustments to the reported carrying amounts and classification of assets, liabilities and expenses that might otherwise be required if the going concern basis were not correct.
Assets and liabilities are measured at cost or amortized cost, except for some financial assets and liabilities and investment properties that are measured at fair value. Financial assets and liabilities measured at fair value comprise those classified as assets and liabilities at fair value through profit or loss and equity securities measured at fair value through other comprehensive income (“OCI”) in equity. Investments in subsidiaries, associates and joint ventures are measured using the equity method.
The condensed separate interim financial statements are stated in Colombian pesos (“COP”) and figures are stated in millions, except earnings per share, diluted earnings per share and the exchange rate, which are stated in units of Colombian pesos, while other currencies (dollars, euro, pounds, etc.) are stated in thousands.
The condensed separate interim financial statements are those that serve as the basis for the regulatory compliance, distribution of dividends and other appropriations by the shareholders.
Transactions between entities under common control
The combination of entities under common control refers to transactions in which entities that are under the control of the Group—both before and after the combination—are merged, and such control is not transitory.
For transactions under common control, Cibest has elected, as an accounting policy, to use the predecessor value method for the recognition of intercompany transactions. This means that the assets and liabilities spun off from the entity or spun-off business are recognized in the condensed separate interim financial statements of the company at their carrying amount, as recorded prior to the transaction date.
Cibest presents the net assets received retrospectively from the date of the transfer.
During the second quarter of 2025, Cibest assumed the position of parent of the economic group. Therefore, from that date onward, the condensed separate interim financial statements presented include all subsidiaries previously
consolidated by Bancolombia S.A. For further information, see Note 1 – Reporting Entity.
B. Presentation of the condensed separate interim financial statements
Cibest presents the condensed separate interim statement of financial position ordered by liquidity and the condensed separate interim statement of income is prepared based on the nature of expenses. Revenues and expenses are not offset unless such treatment is permitted or required by an accounting standard or interpretation and described in Cibest's policies.
The condensed separate interim statement of comprehensive income presents net income and items of OCI classified by nature and grouped into those that will not be reclassified subsequently to profit or loss and those that will be reclassified when specific conditions are met. Cibest discloses the amount of income tax relating to each item of OCI.
The condensed separate interim statement of cash flows was prepared using the indirect method, according to which the starting point is net profit or loss of the period, whereby net income is adjusted for the effects of transactions of a non-cash nature, changes during the period in operating assets and liabilities, and items of income or expense associated with investing or financing cash flows.
C. Material Accounting Policies
The material accounting policies that Cibest uses in preparing its condensed separate interim financial statements are detailed below:
1.Functional currency, transactions, and balances in foreign currency
The functional and presentation currency of Cibest´s condensed separate interim financial statements is the Colombian peso. Therefore, all balances and transactions denominated in currencies other than the Colombian peso are considered as foreign currency, which are translated into the functional currency using the exchange rates at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of the transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at period end are generally recognized in net income.
Non-monetary items that are measured at cost are held at the exchange rate at the transaction date, while those which are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. When a gain or loss on a non-monetary item is recognized in the condensed separate interim statement of comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income. Conversely, when a gain or loss on a non-monetary item is recognized in net income, any exchange component of that gain or loss shall be recognized in net income.
The table below sets forth the exchange rate used by Cibest to convert transactions in U.S. dollar into Colombian pesos:
| September 30, 2025 | December 31, 2024 | |
|---|---|---|
| Closing exchange rates | 3.923,55 | 4.409,15 |
2.Cash and cash equivalents
Cibest considers cash and cash equivalents to include cash, balances at banks and other financial institutions, as shown in Note 3. Cash and cash equivalents.
3.Financial instruments
A financial instrument is a contract that gives rise to a financial asset of one entity and, simultaneously, to a financial liability or equity instrument of another entity.
3.1. Financial assets
Financial assets are recognized when Cibest becomes party to the contractual provisions of the instrument. This includes regular way purchases and sales, which are those purchases and sales of financial assets that require the delivery of assets within the time frame established by regulation or convention in the marketplace. Cibest uses settlement date accounting for regular way contracts when recording financial asset transactions.
At initial recognition, Cibest measures financial assets at fair value plus, in the case of a financial asset that is not measured at fair value through profit or loss, the transaction costs directly attributable to the acquisition of the financial assets. Transaction costs of financial assets subsequently measured at fair value with changes in profit or loss are recognized as expenses in the income statement.
3.1.1. Classification and measurement of financial assets
Cibest measures equity instruments at FVTPL. Likewise, Cibest has made an irrevocable choice to present subsequent changes in the fair value of some equity instrument investments that are not held for trading in other comprehensive income. Dividends from such investments are recognized in the income statement when the right to receive payment is established.
Accumulated gains or losses in other comprehensive income at the time of derecognition of a financial asset are reclassified from equity to the income statement, except for investments in equity instruments for which Cibest has made the irrevocable choice to present subsequent changes in fair value in other comprehensive income; for these, reclassification is made to the "retained earnings" line.
3.2. Financial liabilities
At initial recognition, Cibest measures its financial liabilities at fair value. The transaction costs that are directly attributable to the financial liability are deducted from its fair value if the instruments are subsequently recognized at amortized cost or will be recognized in the statement of income if the liabilities are measured at fair value.
3.2.1. Classification and measurement of financial liabilities
Financial liabilities are classified and subsequently measured as follows:
•Amortized cost: Measured at cost using the effective interest rate method.
•Fair value through profit or loss (“FVTPL”): Measured using fair value, with variations in value recognized in the income statement.
•Irrevocably designated at fair value through profit or loss: Irrevocably designated at fair value through profit or loss: Measured using fair value, with variations in value recognized in the income statement. The effect of changes in own credit risk is presented in other comprehensive income.
3.2.2. Derecognition of financial liabilities
Cibest derecognizes a financial liability from the statement of financial position when it is extinguished; that is, when the contractual obligation has been paid or settled or has expired.
3.3. Compound instruments
Cibest recognizes compound financial instruments that contain both liability and equity components separately. Therefore, for initial measurement, the liability component is the fair value of a similar liability which does not have an equity
component (determined by discounting future cash flows using the market rate at the date of the issuance). The difference between the fair value of the liability component and the fair value of the compound financial instrument, considered as a whole, is the residual value assigned to the equity component. After initial recognition, the liability component of a compound financial instrument is measured at amortized cost using the effective interest method. The equity component of a compound financial instrument is not re-measured subsequent to initial recognition. The liability component corresponds to the preferred dividend related to 1% of the subscription price, which is the payment of the minimum dividend on the preferred shares for each period, in accordance with Cibest's statutes.
4.Investments in subsidiaries, associates, and joint arrangements
4.1. Investments in subsidiaries
A subsidiary is an entity in which Cibest holds rights that give it the ability to direct the relevant activities, provided that it meets the following elements:
-Power over the investee that gives it the present ability to direct the relevant activities that significantly affect its performance.
-Exposure or right to variable returns arising from its involvement in the investee.
-Ability to use its power over the investee to influence the amounts of returns of the investor.
Under the equity method, the investment is initially recorded at cost, and is adjusted with the changes in Cibest's participation in the net assets of the subsidiary after the acquisition date, less any loss in value of the investment. When there are indications of impairment, the carrying amount of the investment will be evaluated in accordance with IAS 36 Impairment of Assets, as a single asset. Impairment losses are recognized in results when the carrying amount exceeds the recoverable amount, determined as the greater of the fair value less costs to sell and the value in use of the subsidiary.
Cash dividends received from the subsidiary are recognized by reducing the carrying amount of the investment.
4.2. Investments in associates and joint ventures
An associate is an entity over which Cibest has significant influence. Significant influence is the power to participate in the financial and operating policy decisions
of the investee but does not have control or joint control to make those policies decisions.
A joint venture is an entity that Cibest controls jointly with other participants, where the parties maintain a contractual agreement that establishes joint control over the relevant activities of the entity (which only exists when decisions about those activities require unanimous consent of the parties sharing control) and the parties have rights to the net assets of the joint arrangement.
Cibest's investments in associates and joint ventures are initially recorded at cost and their results, assets and liabilities are subsequently included in the condensed separate interim financial statements using the equity method, except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for in accordance with IFRS 5 Non-current assets held for sale and discontinued operations. When an investment in an associate or joint venture is held by, or is held indirectly through, an entity that is an investment entity, Cibest may elect to measure investments in those associates and joint ventures at fair value through profit or loss in the condensed separate interim financial statements. This election is applied on an investment-by-investment basis.
At the acquisition date, the excess of the acquisition cost of the associate or joint venture shares exceeding Cibest´s share of the net fair value of identifiable assets and liabilities of the investee is recognized as goodwill and is included in the carrying amount of the investment and it is not amortized. Any excess of Cibest’s share of the net fair value of the investee’s identifiable assets and liabilities over the cost of the investment is included as income in the determination of Cibest’s share of the associate or joint venture’s profit or loss in the period in which the investment is acquired. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 Impairment of assets, as a single asset. Impairment losses are recognized in accordance with the policy for impairment of assets, cash-generating units and goodwill (see section 6. Impairment of assets, cash-generating units, of this note).
If Cibest's share of losses of an associate or joint venture exceeds Cibest's interest in that associate or joint venture (which includes any long-term interests that, in substance, form part of Cibest's net investment in the associate or joint venture), Cibest discontinues recognition its share of further losses and recognized subsequent losses only to the extent that Cibest has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.
When the equity method is applicable, adjustments are considered in order to adopt uniform accounting policies of the associate or joint venture with Cibest. The portion that corresponds to Cibest for changes in the investee´s other
comprehensive income items is recognized in the statement of comprehensive income as “Unrealized gain/loss on investments in associates and joint ventures using equity method” and gains or losses of the associate or joint venture are recognized in the statement of income as “Other income on equity investments”, in accordance with Cibest's participation. Gains and losses resulting from transactions between Cibest and its associate or joint venture are recognized in Cibest´s condensed separate interim financial statements only to the extent of the unrelated investor´s interest in the associate or joint venture. The equity method is applied from the acquisition date until the significant influence or joint control over the entity is lost.
When the significant influence on the associate or the joint venture is lost, Cibest measures and recognizes any residual investment that remains at its fair value. The difference between the associate or joint venture carrying value (taking into account the relevant items of other comprehensive income), the fair value of the retained residual investment and any proceeds from disposing of a partial interest in the associate or joint venture, is recognized in the statement of income. The currency translation adjustments recognized in equity are reclassified to net income at the moment of disposal.
The unrealized gain or loss of an associate or joint venture is presented in the statement of comprehensive income, net of tax. Changes in the investment´s participation that arise from changes in other comprehensive income of an associate or joint venture are recognized directly in the investor’s statement of comprehensive income.
The dividends received from the associate or joint venture reduce the investment carrying value.
For further information, please see Note 6. Investments in associates and joint ventures.
5.Receivables
Represents receivable rights arising from the development of Cibest’s economic activities. These receivables are initially measured at fair value and reassessed at the end of the reporting period. Their recoverability is evaluated to determine the necessary provisions for impairment in case of potential loss contingencies.
5.1 Impairment of intra-group receivables
Represents receivable rights arising from the development of Cibest’s economic activities. These receivables are initially measured at fair value and reassessed at
the end of the reporting period. Their recoverability is evaluated to determine the necessary provisions for impairment in case of potential loss contingencies.
6.Impairment of assets and cash generating units
Cibest evaluates at the end of each period whether there is any indication that on a stand-alone basis non-financial assets and cash-generating units are impaired. If some indication of impairment does exist, Cibest estimates the recoverable amount and asses if the carriyng amount exceeds such amount, in order to calculate if the impairment loss is recognized.
The recoverable amount of non-financial assets or cash-generating units is the higher of its fair value less costs of disposal and its value in use, where fair value is determined by Management by reference to market value, if available, by pricing models, or with the assistance of a valuation specialist. While value in use requires Management to make assumptions and use estimates to forecast cash flow for periods that are beyond the normal requirements of management reporting; and assess the appropriate discount rate and growth rate.
If an asset does not generate cash flows that are independent from the rest of the assets or group of assets, the recoverable amount is determined by the cash-generating unit to which the asset belongs.
The amount of impairment losses recognized in net income during the period are included in the statement of income as “Impairment of assets”. Impairment losses are subject to reversal, provided that the value of the asset or cash-generating unit has been recovered, without exceeding the carrying amount that would have been determined had no impairment loss been recognized.
7.Derecognition of non-financial assets
Cibest's non-financial assets are derecognized either on disposal or when they are permanently withdrawn from use and no future economic benefits are expected. The difference between the value obtained on disposal and the carrying amount is recognized in the statement of income.
8.Provisions, contingent liabilities, and contingent assets
Provisions
Provisions are recognized when Cibest has a present obligation (legal or constructive) as a result of a past event, where it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the obligation's value can be made.
The corresponding expense for any provision is presented in the statement of income, net of all expected reimbursement. The increase in the provision due to the time value of money is recognized as a financial expense.
Contingent liabilities
Possible obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of Cibest, or present obligations that arise from past events but are not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligations or the amount of the obligations cannot be measured with sufficient reliability, are not recognized in the statement of financial position, but instead are disclosed as contingent liabilities, unless the possibility of an outflow of resources embodying economic benefits is remote, in which case no disclosure is required.
Contingent assets
Possible assets that arise from past events whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of Cibest, are not recognized in the statement of financial position; instead, these are disclosed as contingent assets where an inflow of economic benefits is probable. When the realization of income is virtually certain, then the related asset is not a contingent asset, and its recognition is appropriate.
9.Revenue recognition
The equity method is applied by recognizing the investor’s share of the profits generated during the period by subsidiaries, associates, and joint ventures.
Dividend revenue of investments that are not associates or joint ventures are recognized when the right to payment of Cibest is established, which is generally when the shareholders declare the dividend. These are included in the statement of income as “Other income on equity investments”.
10.Employee benefits
10.1. Short term benefits
Cibest grants to its employees short-term benefits such as bonuses based on added value to clients and Cibest’s results, salaries, accrued performance costs and social security that are expected to be wholly settled within 12 months after the annual report being reported short term benefits are recognized as expenses in the line-item “Salaries and employee benefits” over the period in which the employees provide the services to which the payments relate.
10.2. Other long-term employee benefits
Cibest grants to its employees seniority bonuses as long-term employee benefits whose payment is not expected within the 12 months following the end of the annual period in which the employees have rendered their services. The cost of long-term employee benefits is allocated across the period from the time the employee was hired by Cibest and the expected date of obtaining the benefit. These benefits are projected up to the date of payment and are discounted through the projected unit credit method and is recognized as expense in the line-item “Salaries and employee benefits”.
10.3. Pensions and other post-employment benefits
Defined contribution plans
These are monthly contributions made by Cibest to a pension and severance funds, by each concept. Basically, this is an obligation limited to the amount that Cibest is legally required or has agreed to pay or contribute to a fund and is not required to make any additional contributions.
Contributions made to defined contribution plans are recognized as expenses in the line-item of the statement of income “Salaries and employee benefits”, recognized when they are accrued. Any unpaid contribution as of the reporting date of the statement of financial position are included as liability.
Defined benefit plans
These are post-employment benefit plans in which Cibest has the legal or constructive obligation to take responsibility for the payments of benefits that have been agreed.
This corresponds to a pension recognition bonus for which Cibest is responsible and must assume the actuarial risk related to such obligations. To this end, it performs an actuarial valuation using the Projected Unit Credit Method, which consists of projecting the growth of currently accrued pension benefits to reflect inflation and salary increases up to the pension payment date. These amounts are
then discounted to present value using the risk-free interest rate that best reflects the time value of money (TES rate for Colombia), aligned with the characteristics and the weighted average duration of the benefit cash flows, the currency of the obligation, and maturities that most closely match the plan’s liabilities.
In determining the value of the plan liabilities, Management makes demographic and financial assumptions regarding life expectancy, inflation, discount rates, and pension increases, based on past experience and expectations. These financial assumptions are based on market conditions as of the financial statement reporting date.
11.Income tax
Income tax includes current tax and deferred tax. The current tax is the income tax payable with respect to the profit for the fiscal year, which arises in profit or other comprehensive income. A provision is made for current tax considering the tax bases and tax rates enacted at the date of preparation of the condensed separate interim financial statements.
Cibest recognizes, when appropriate, deferred tax assets and liabilities by estimating the future tax effects attributable to differences between book values of assets, liabilities and their tax bases. Deferred tax assets and liabilities are measured based on the tax rate that, in accordance with the valid tax laws in Colombia, must be applied in the year in which the deferred tax assets and liabilities are expected to be realized or settled. The future effects of changes in tax laws or tax rates are recognized in the deferred taxes as from the date of publication of the law providing for such changes.
Tax bases for deferred tax must be calculated by factoring in the definition of IAS 12 Income tax and the value of the assets and liabilities that will be realized or settled in the future according to the valid tax laws of Colombia.
Deferred tax liabilities due to deductible temporary differences associated with investments in subsidiary and associated entities or shares in joint ventures, are recognized, except when Cibest is able to control the period in which the deductible temporary difference is reverted, and it is likely that the temporary difference will not be reverted in the foreseeable future.
Deferred tax assets, identified with temporary differences, are only recognized if it is considered likely that Cibest will have sufficient taxable income in the future that allows it to be recovered based on the stand-alone entity expected cash flow forecast for the next three years.
Tax credit from fiscal losses and surplus amounts from the presumptive income on the net income are recognized as a deferred asset, provided that it is likely that Cibest will generate future net income to allow their offset.
The deferred tax is recorded as debit or credit according to the result of each of the companies that form Cibest, and for the purpose of disclosure on the statement of financial position it is disclosed as net.
The deferred income tax expense is recognized in the statement of income under the heading “Income tax”, except when referring to amounts directly recognized in OCI (Other Comprehensive Income) or equity.
Regulatory changes in tax laws and in tax rates are recognized in the statement of income under the heading “Income Tax” in the period when such rule becomes enforceable. Interest and fines are recognized in the statement of income under the other administrative and general expenses or in the caption "Income tax" of the income statement, when applicable.
Cibest periodically assesses the tax positions adopted in tax returns, and, according to the results of the tax audits conducted by the tax authorities, determines possible tax outcomes provided it has a present obligation and it is more likely than not that Cibest will have to dispose of the economic resources to cancel the obligation, and Cibest can make an accurate estimate of the amount of the obligation. Recognized amounts are based on a reasonably estimated amount that is expected that allows to cover the value of uncertain position in the future.
Transfers pricing policy
Cibest recognizes arm’s length operations with foreign economic links applying Arm’s Length Principle. These operations are documented and reported to the tax Administration according to the last evaluation date corresponding to the previous year.
D. Use of estimates and judgements
The preparation of condensed separate interim financial statements require Cibest's Management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the
estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Judgments or changes in assumptions are disclosed in the notes to the condensed separate interim financial statements. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under current circumstances. Actual results may differ from these estimates if assumptions and conditions change.
The material accounting estimates that Cibest uses in preparing its condensed separate interim financial statements are detailed below.
1.Deferred tax
Deferred tax assets and liabilities are recorded on deductible or levied temporary differences originating between tax and accounting bases, taking into account the tax rules applicable in each country where Cibest has operations. Due to the changing conditions of the political, social and economic environment, the constant amendments to tax legislation and the permanent changes in the tax principles and changes in interpretations by tax authorities determining the tax bases for the deferred tax items involves difficult judgments including estimates of future gains, offsets or tax deductions. Accordingly, the determination of the deferred tax is considered a critical accounting policy.
For more information relating to the nature of deferred tax assets and liabilities recognized by Cibest, please see Note 7. Income tax.
2.Fair value of assets and liabilities
The fair value of Cibest's assets and liabilities is determined at the date of the statement of financial position. Cibest's fair value measurement process considers the characteristics of the asset or liability in the same way that market participants would take them into account when pricing the asset or liability at the measurement date; the estimate takes into account inputs from valuation techniques used to measure fair value.
To increase consistency and comparability in fair value measurements and related disclosures, Cibest specifies different levels of inputs that may be used to measure the fair value of financial instruments, as follows:
Level 1: Assets and liabilities are classified as Level 1 if there are observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. An active market is one in which transactions occur with
sufficient volume and frequency to provide pricing information on an ongoing basis. Instruments are valued by reference to unadjusted quoted prices for identical assets or liabilities in active markets where the quoted price is readily available, and the price represents actual and regularly occurring market transactions.
Level 2: Assets and liabilities are classified as Level 2 if in the absence of a market price for a specific financial instrument, its fair value is estimated using models whose input data are observable for recent transactions of identical or similar instruments.
Level 3: Assets and liabilities are classified as level 3 if unobservable input data were used in the measurement of fair value that are supported by little or no market activity and that are significant to the fair value of these assets or liabilities. The fair value of Level 3 financial assets and liabilities is determined using pricing models, discounted cash flow methodologies or similar techniques.
Transfers into or out of Level 3 are made if the significant inputs used in the financial models measuring the fair values of the assets and liabilities became unobservable or observable, respectively, in the current marketplace. All transfers between the aforementioned levels are assumed to occur at the end of the reporting period.
The measurement of the fair value of financial instruments generally involves a higher degree of complexity and requires the application of judgments especially when the models use unobservable inputs (level 3) based on the assumptions that would be used in the market to determine the price for assets or liabilities. Determination of these assumptions includes consideration of market conditions and liquidity levels. Changes in the market conditions, such as reduced liquidity in the capital markets or changes in secondary market activities, may reduce the availability and reliability of quoted prices or observable data used to determine fair value.
When developing fair value measurements, Cibest maximizes the use of observable inputs and minimizes the use of unobservable inputs in measuring fair value. Additionally, Cibest uses third-party pricing services to obtain fair values, which are used to either record the price of an instrument or to corroborate internally developed prices. Third-party price validation procedures are performed over the reasonableness of the fair value measurements.
An analysis of fair value, hierarchy levels in measurement and any transfers between levels, if applicable, comparation with the carrying amounts and other relevant information is provided in Note 18. Fair value of financial assets
3.Uncertainty over income tax treatments
In the process of determining the current and deferred tax for periods subject to review by the tax authority, the applicable rules have been applied and interpretations have been made to take positions, on which different interpretations could arise from those made by the entity. Due to the complexity of the tax system, the continuous modifications of the fiscal rules, the accounting changes with implications in the tax bases and in general the legal instability of the country, at any time the tax authority could have different criteria from Cibest. Therefore, a dispute or inspection by the tax authority on a specific tax treatment may affect the deferred or current tax asset or liability Cibest´s accounting, in accordance with the requirements of IAS 12.
Management and its advisors believe that their decisions concerning the estimates and judgments made in each fiscal period are in accordance with those required by the current tax regulations, and therefore have not considered it necessary to recognize any additional provisions to those indicated in Note 10. Income tax.
E.Recently issued accounting pronouncements
Recently accounting pronouncements issued by IASB pending to incorporate in NCIF framework accepted in Colombia.
New standard NIIF 18 Presentation and Disclosure in Separate financial statements: In April 2024, the Board issued IFRS 18 to replace IAS 1 Presentation of Separate financial statements. IFRS 18 introduces three sets of new requirements to improve the way companies report their financial performance and give investors a better basis for analyzing and comparing companies:
-Improved comparability in the statement of income: IFRS 18 introduces three defined categories for income and expenses (operating, investing and financing) to improve the structure of the statement of income, and requires all companies to provide new defined subtotals, including operating profit.
-Enhanced transparency of management-defined performance measures: The new standard requires companies to disclose explanations of those company-specific measures that are related to the statement of income, referred to as management-defined performance measures.
-More useful grouping of information in the condensed separate interim financial statements: IFRS 18 sets out enhanced guidance on how to organize information and whether to provide it in the primary condensed separate interim financial statements or in the notes. In addition, the new standard requires companies to provide more transparency about operating expenses, helping investors to find and understand the information they need.
IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027, and early application is permitted.
Management is assessing the impact that these amendments will have on Cibest's condensed separate interim financial statements and disclosures.
NOTE 3. CASH AND CASH EQUIVALENTS
For purposes of the statement of cash flow and the statement of financial position, the following assets are considered as cash and cash equivalents:
| September 30, 2025 | December 31, 2024 | |
|---|---|---|
| In millions of COP | ||
| Cash | - | - |
| Deposits from banks and other private financial institutions | 53,305 | - |
| Total cash and cash equivalents | 53,305 | - |
NOTE 4. FINANCIAL ASSETS INVESTMENTS
Cibest's portfolio investment in financial instruments and derivatives as of September 30, 2025 and December 31, 2024 is described below:
| Financial assets investments and derivative financial instruments | September 30, 2025 | December 31, 2024 |
|---|---|---|
| In millions of COP | ||
| Investments at amortized cost (1) | 1,067,035 | - |
| Equity instruments (2) | 7,640 | 38 |
| Total financial investment instruments | 1,074,675 | 38 |
(1)Corresponds to investments in term deposits with fixed returns held at Bancolombia.
(1)See Note 4.1 Investments in equity securities.
4.1. Investments in equity securities
The detail of investments in equity securities is as follows:
| Equity financial instruments | September 30, 2025 | December 31, 2024 |
|---|---|---|
| In millions of COP | ||
| Equity investments at fair value through profit or loss | 3,388 | 38 |
| Bancolombia S.A (1) | - | 38 |
| Investment Fund Renta Liquidez | 3,388 | - |
| Equity instruments measured at fair value through OCI | 4,252 | - |
| Fiduciary Right – Inmobiliaria Cadenalco (2) | 4,252 | - |
| Total equity financial instruments | 7,640 | 38 |
(1)The change is due to a modification in the group's corporate structure. In May 2025, the investment in Bancolombia S.A. was reclassified as an investment in subsidiaries.
(2)As of December 31, 2024, Cibest did not hold this investment. See Note 1 – Reporting Entity.
The above investments are considered strategic for Cibest; therefore, there are no plans to sell them in the near term.
The fair value effect recognized in the statement of other comprehensive income, related to equity investment financial instruments, amounts to COP 1,796 for 2025. See Separate Statement of Other Comprehensive Income – Gain (Loss) on Valuation of Financial Instruments.
As of September 30, 2025, no impairment losses were recognized on equity instruments.
NOTE 5. INVESTMENT IN SUBSIDIARIES
The detail of investments in subsidiaries as of September 30, 2025 and December 31, 2024 is as below:
| June 30, 2025 (1) | December 31, 2024 | |||||
|---|---|---|---|---|---|---|
| In millions of COP | ||||||
| Company name | Main activity | Country | % of ownership | Investment value | % of ownership | Investment value |
| Bancolombia S.A. | Financial services | Colombia | 94.50 % | 24,846,817 | - | - |
| Banistmo S.A. | Financial services | Panamá | 100.00 % | 10,615,200 | - | - |
| Banagrícola S.A. | Holding | Panamá | 99.17 % | 4,586,365 | - | - |
| Grupo Agromercantil Holding S.A. | Holding | Panamá | 100.00 % | 3,287,305 | - | - |
| Inversiones Cibest S.A.S. (2) | Investment | Colombia | 100.00 % | 1,165,181 | - | - |
| Renting Colombia S.A.S. | Operating lease | Colombia | 94.58 % | 333,015 | - | - |
| Negocios Digitales Colombia S.A.S. | Payment solutions | Colombia | 100.00 % | 104,545 | - | - |
| Wompi S.A.S. | Technology services | Colombia | 100.00 % | 69,895 | - | - |
| Nequi S.A. finance Company | Financial services | Colombia | 94.99 % | 61,462 | - | - |
| Cibest Investment Management S.A.S. (2) | Investment | Colombia | 100.00 % | 52,455 | - | - |
| Valores Cibest S.A.S. (2) | Investment | Colombia | 100.00 % | 52,455 | - | - |
| Cibest Inversiones Estratégicas S.A.S. (2) | Investment | Colombia | 100.00 % | 52,455 | - | - |
| Wenia Ltd. | Technology services | Bermudas | 100.00 % | 49,180 | - | - |
| Cibest Panama Assets S.A | Investment | Panamá | 100.00 % | 49,044 | - | - |
| Total investment in subsidiaries | 45,325,374 | - | - |
(1) The increase in investments in subsidiaries as of September 30, 2025, is attributable to the corporate developments described in Note 1 – Reporting Entity. (2) These investments were initially recognized in 2024, each with a carrying amount below one million. The value reported in 2025 reflects the subsequent capital contributions made during the period and their respective valuations.
The following tables sets forth the changes of the Bank's subsidiary investments as of September 30, 2025 and December 31, 2024:
| September 30, 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Bancolombia S.A. | Banistmo S.A. | Banagrícola S.A. | Grupo Agromercantil Holding S.A. | Inversiones Cibest S.A.S. | Renting Colombia S.A.S. | Negocios Digitales Colombia S.A.S. | Others | Total | |
| In millions of COP | |||||||||
| Initial balance | - | - | - | - | - | - | - | - | - |
| Value received in the partial absorption-type spin-off from Bancolombia S.A. to Grupo Cibest S.A. | 21,625,229 | 11,125,504 | 4,676,277 | 3,465,595 | - | 324,563 | 102,321 | 129,648 | 41,449,137 |
| Equity method through income statement (1) | 2,633,437 | 256,942 | 245,142 | 53,862 | 108,084 | 8,452 | (1,265) | 5,629 | 3,310,283 |
| OCI (Equity method) (2) | (60,614) | (764,596) | (335,054) | (225,161) | (5,464) | - | 3,489 | (3,537) | (1,390,937) |
| Purchase / capitalizations | - | - | - | - | 1,063,507 | - | - | 243,687 | 1,307,194 |
| Dividends | (1,189,386) | - | - | - | - | - | - | - | (1,189,386) |
| Restitution of contributions | - | - | - | - | - | - | - | - | - |
| Profit for previous years | (18,887) | (2,650) | - | (6,991) | (946) | - | - | 29 | (29,445) |
| Final balance | 24,846,817 | 10,615,200 | 4,586,365 | 3,287,305 | 1,165,181 | 333,015 | 104,545 | 386,946 | 45,325,374 |
(1) See Note 12.1. Net Income from Equity Method Investments (2) This amount corresponds to other comprehensive income recognized under the equity method, including foreign exchange differences. As of September 30, 2025. For further details, refer to the Separate Statement of Comprehensive Income – Profit from investments in subsidiaries accounted for using the equity method. (3) During 2025, capital contributions were made to the following entities: Cibest Inversiones Estratégicas S.A.S. COP 43,501; Cibest Investment Management S.A.S. COP 43,501; Cibest Panamá Assets S.A. COP 49,044; Nequi S.A. Compañía de Financiamiento COP 18,998; Valores Cibest S.A.S. COP 43,501; Wenia Ltd. COP 20,142; and Wompi S.A.S.COP 25,000.
The following is the supplementary information of the Cibest's most significant subsidiaries as of June 30, 2025 and December 31, 2024 without eliminations:
As of September 30, 2025
| Company | Assets | Liabilities | Income from ordinary activities | Gain / (Loss) |
|---|---|---|---|---|
| In millions of COP | ||||
| Bancolombia S.A. | 255,526,804 | 229,358,991 | 12,099,944 | (516,906) |
| Banistmo S.A. | 41,052,535 | (36,371,950) | (3,209,181) | (364,433) |
| Banagrícola S.A. | 27,148,674 | (24,259,766) | (2,349,181) | (436,949) |
| Grupo Agromercantil Holding S.A. | 25,782,445 | (23,618,439) | (2,072,299) | (92,803) |
| Renting Colombia S.A.S. | 1,165,182 | (1) | (110,776) | (108,084) |
The financial statements as of September 30, 2025 have been used for the purpose of applying the equity method for the subsidiaries.
As of September 30, 2025 there are no restrictions or limitations on the ability of subsidiaries to transfer funds to the Bank in the form of dividends and other capital distributions; likewise, there are no contingent liabilities in connection with their interests in the aforementioned subsidiaries.
5.1 Hedge of a net investment in a foreign operation
Cibest applies hedge accounting in accordance with IFRS 9, under the hedge type of a net investment in a foreign operation. The company has designated USD 359,000 in liability borrowings as the hedging instrument. This transaction aims to protect Cibest against foreign exchange risk (USD/COP) related to a portion of its net investment in Banistmo S.A., a company domiciled in Panama City whose financial statements are presented in U.S. dollars.
The book value and the hedged portion of the investment are listed below:
| Banistmo S.A. |
|---|
| In thousands of |
| Net investment hedged in the hedging relationship (1) |
| Total net investment Banistmo S.A. |
All values are in US Dollars.
(1) As of December 31, 2024, there were no financial obligations.
The following is a detail of the hedging instruments of the net investment in the net foreign investment:
As of September 30, 2025
| Debt securities issued in thousands of , designated as hedging instruments | |||
|---|---|---|---|
| Opening date | E.A rate | Capital balance | Capital designated as hedging instrument |
| 18/03/2022 | 5.85% | 234,000 | 234,000 |
| 25/03/2022 | 5.84% | 100,000 | 100,000 |
| 28/03/2022 | 5.79% | 25,000 | 25,000 |
| Total debt securities | 359,000 | 359,000 |
All values are in US Dollars.
As of September 30, 2025, the amount of these obligations amounted to COP 1,408,554. For further information on obligations to correspondent banks, see Note 8, Borrowings from other financial institutions.
Measuring effectiveness and ineffectiveness
A hedge is considered effective if, at the beginning of the period and in subsequent periods, the changes in fair value or cash flows attributable to the hedged risk during the period for which the hedge has been designated are offset.
Cibest has documented the evidence of effectiveness of the hedge of the net foreign investment based on the portion of the net investment hedged at the beginning of the hedging relationship amounting to USD 359,000. The hedge is considered perfectly effective since the critical terms and risks of the obligations that serve as hedging instruments are identical to those of the primary hedged position. The effectiveness of the hedge is measured before taxes.
Gains or losses on translation of Banistmo's financial statements are recognized in OCI. Consequently, the exchange difference related to the translation of debt securities issued and borrowings from correspondent banks is recognized directly in OCI.
NOTE 6. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
The following table summarizes the balance sheet balances of investments in associates and joint ventures as of September 30, 2025 and December 31, 2024:
| Composition | June 30, 2025 (1) | December 31, 2024 |
|---|---|---|
| In millions of COP | ||
| Investments in associates | 31,071 | - |
| Joint ventures | 21,294 | - |
| Total | 52,365 | - |
(1) As of December 31, 2024, Cibest did not hold this type of investment. The increase in investments in associates and joint ventures as of September 30, 2025, is explained by the corporate developments described in Note 1. Reporting Entity, which on the date of the spin-off had an equity method value of COP 4,470, therefore the value of this income for the remaining period until September 30 is COP 6,838.
The following tables present the Cibest's investments in associates as of September 30, 2025 and December 31, 2024:
| Company name | Principal activity | Country | September 30, 2025 | December 31, 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| % of participation | Investment | % of participation | Investment | |||||
| Protección S.A. | Administration of pension funds and severances | Colombia | 0.69 % | 21,523 | - % | - | ||
| International Ejecutiva de Aviación S.A.S. | Air transportation service | Colombia | 37.50 % | 9,548 | - % | - | ||
| Total investments in associates | 31,071 |
The following tables present the changes in the Cibest's investments in associates as of September 30, 2025:
| September 30, 2025 | |||
|---|---|---|---|
| Protección S.A. | International Ejecutiva de Aviación S.A.S. | Total | |
| In millions of COP | |||
| Value received in the partial absorption-type spin-off from Bancolombia S.A. to Grupo Cibest S.A. | 20,163 | 9,828 | 29,991 |
| Equity method recognized in income (1) | 1,360 | (16) | 1,344 |
| Equity method recognized in OCI (2) | - | (264) | (264) |
| Final balance | 21,523 | 9,548 | 31,071 |
(1)See Note 12.1. Net income from equity method investments.
(2)See separate statement of comprehensive income.
The following presents the information related to Cibest's investments in joint ventures:
| Company name | Principal activity | Country | September 30, 2025 | December 31, 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| % of participation | Investment | % of participation | Investment | |||||
| Puntos Colombia S.A.S. | Customer loyalty management | Colombia | 50.00% | 21,294 | - % | - | ||
| Total investments in joint ventures | - % | 21,294 | - % | - |
The following table presents the changes in the Cibest’s investments in joint ventures as of September 30, 2025:
| Puntos Colombia S.A.S. | September 30, 2025 | December 31, 2024 |
|---|---|---|
| In millions of COP | ||
| Balance at beginning of period | - | - |
| Value received in the partial absorption-type spin-off from Bancolombia S.A. to Grupo Cibest S.A. | 20,516 | - |
| Income in equity method (1) | 5,494 | - |
| Dividends | (4,716) | |
| Balance at end of period | 21,294 | - |
See Note 12.1 – Net income from equity method investments.
Below is the supplementary information on Cibest's most significant associates and joint ventures as of September 30, 2025 and December 31, 2024:
As of September 30, 2025
| Company name | Classification | Assets | Liabilities | Income from ordinary activities | Gain / (Loss) |
|---|---|---|---|---|---|
| In millions of COP | |||||
| Protección S.A. | Associates | 3,383,197 | 846,886 | 1,295,622 | 295,099 |
| International Ejecutiva de Aviación S.A.S. | Associates | 125,044 | 122,480 | (55,787) | 2,565 |
| Puntos Colombia S.A.S. | Joint ventures | 299,300 | 256,712 | 299,979 | 16,638 |
For the purposes of applying the equity method to associates and joint ventures, the financial statements as of August 31, 2025 have been used.
NOTE 7. INCOME TAX
The income tax is recognized in accordance with current tax regulations.
7.1. Components recognized in the separate income statement
The following chart provides a detailed breakdown of the total income tax for nine-months ended September 30, 2025 and for three-months periods from July 1 to September 30, 2025:
| Accumulated | Quarterly | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| In millions of COP | ||||
| Current tax | ||||
| Fiscal year | (8,497) | - | (8,497) | - |
| Total, current income tax | (8,497) | - | (8,497) | - |
| Deferred tax | - | - | - | - |
| Fiscal year | (8,737) | - | (439) | - |
| Total, deferred tax | (8,737) | - | (439) | - |
| Total income tax | (17,234) | - | (8,936) | - |
7.2. Reconciliation of the effective tax rate
The detailed reconciliation between the total income tax expenses calculated at the current nominal tax rate and the recognized fiscal expense in the separate income statement for nine-months ended September 30, 2025 and for three-months from July 1 to September 30, 2025:
| Accumulated | Quarterly | |||
|---|---|---|---|---|
| Effective tax rate reconciliation | 2025 | 2024 | 2025 | 2024 |
| In millions of COP | ||||
| Income before taxes | 5,617,869 | - | 2,060,726 | - |
| Applicable tax at nominal rate | (1,966,254) | - | (721,254) | - |
| Non-deductible expenses for the determination of taxable profit | (28,542) | - | (18,098) | - |
| Net book and non-taxable income for the determination of taxable profit | 1,986,738 | - | 731,015 | - |
| Net tax and non-accountable income for the determination of taxable profit | (2,332) | - | (1,811) | - |
| Income from ordinary activities not constituting income or occasional gain from taxable activities | 1,893 | - | 1,651 | - |
| Other tax rate effects due to reconciliation between book income and tax expense | (8,737) | - | (439) | - |
| Total tax | (17,234) | - | (8,936) | - |
7.3. Components recognized in the Statement of Comprehensive Income Separate (OCI)
| From January 1 to September 30, 2025 | |||
|---|---|---|---|
| In millions of COP | |||
| Amounts before taxes | Deferred tax | Net taxes | |
| Utility in valuation of financial instruments | 1,796 | (461) | 1,335 |
| Net income from investments in subsidiaries accounted for using the equity method(1) | 7,898,156 | - | 7,898,156 |
| Loss on valuation of investments in associates and joint ventures(1) | 345 | - | 345 |
| Loss on hedging of net investments in foreign operations(2) | (3,921,437) | (37,532) | (3,958,969) |
| Net | 3,978,860 | (37,993) | 3,940,867 |
(1) Includes the effects of corporate evolution transactions on the item referred to in OCI as "Surplus from equity method".
(2) Includes the effects of corporate evolution transactions on the item referred to in OCI as "Effects of hedge accounting application".
See Statement of Comprehensive Income Separate
Quarterly Results
| September 30, 2025 | |||
|---|---|---|---|
| In millions of COP | |||
| Amounts before taxes | Deferred tax | Net of taxes | |
| Revaluation loss related to defined benefit liabilities | - | - | - |
| Net income from financial instruments measured at fair value | 94 | (18) | 76 |
| Loss on valuation of investments in associates and joint ventures(1) | (682,238) | - | (682,238) |
| Unrealized loss on investments in associates and joint ventures using equity method(1) | (216) | - | (216) |
| Net income - net investment in foreign operations hedge(2) | 52,456 | (18,360) | 34,096 |
| Net | (629,904) | (18,378) | (648,282) |
(1) Includes the effects of corporate evolution transactions on the item referred to in OCI as "Surplus from equity method".
(2) Includes the effects of corporate evolution transactions on the item referred to in OCI as "Effects of hedge accounting application".
7.4. Deferred tax
According to the financial projections, it is expected to generate enough liquid income to offset the items recorded as deductible deferred tax. These estimates start from the financial projections that were prepared considering information from the Cibest Group's economic research records, the expected economic environment for the next five years. The main indicators on which the models are based are GDP growth, loans growth and interest rates. In addition to these elements, the long-term Group's strategy is taken into account.
| December 31, 2024 | Effect on Income Statement | Effect on OCI | Effects on equity | September 30, 2025 | |
|---|---|---|---|---|---|
| In millions of COP | |||||
| Asset Deferred Tax: | - | - | - | - | - |
| Financial obligations | - | (8,385) | (37,532) | 59,373 | 13,456 |
| Other Deductions | - | 150 | - | - | 150 |
| Total Asset Deferred Tax | - | (8,235) | (37,532) | 59,373 | 13,606 |
| Liability Deferred Tax: | - | - | - | - | - |
| Investment Valuation | - | (502) | (461) | (1,627) | (2,590) |
| Goodwill | - | - | - | (1,567,226) | (1,567,226) |
| Total, deferred tax liabilities | - | (502) | (461) | (1,568,853) | (1,569,816) |
| Total, net deferred tax | - | (8,737) | (37,993) | (1,509,480) | (1,556,210) |
7.5. Amount of temporary differences in subsidiaries, branches, and associates over which deferred tax was not recognized is
In accordance with IAS 12, no deferred tax credit was recorded, because Management can control the future moment in which such differences are reversed and this is not expected to occur in the foreseeable future.
| September 30, 2025 | December 31, 2024 | |
|---|---|---|
| In millions of COP | ||
| Temporary differences | - | - |
| Local subsidiaries | (26,039,573) | - |
| Foreign subsidiaries | (15,990,665) | - |
7.6. Dividends
7.6.1 Dividend Payment
Dividends to be distributed by the Cibest Group's will be subject to the application of section 48 and 49 of the Colombian Tax Code, and consequently, they will be subject to a withholding tax established by the norm. This is in accordance with the tax characteristics of each shareholder.
7.6.2 Dividends received from Colombian Subsidiary Companies
Considering the historical tax status of the dividends received by the Cibest Group's from its affiliates and national subsidiaries, it is expected that in the future dividends will be received on the basis of non-income tax. They will not be subject to withholding tax, taking into account that the Cibest Group's, its affiliates and national subsidiaries belong to the same business group.
7.7. Tax contingent liabilities and assets
In the determination of the effective current and deferred taxes subject to review by the tax authority, the relevant regulations have been applied in accordance with the interpretations made by the Cibest Group's.
In Colombia, due to the complexity of the tax system, ongoing amendments to the tax regulations, accounting changes with implications on tax bases and in general the legal instability of the country, the tax administration's judgment may differ from that applied by Cibest Group's at any time. Consequently, a dispute or inspection by the tax authority on a tax treatment may affect accounting of assets or liabilities for deferred or current taxes, in accordance with the requirements of IAS 12. However.
| Based on the criteria established in the interpretation of IFRIC 23, Cibest Group's did not recognize uncertain tax positions in its financial statements. |
|---|
7.8. Tax contingent liabilities and assets
Cibest Group's recognizes transactions between related parties by applying the arm's length principle. These transactions are documented and reported to the Colombian tax administration. No transfer pricing adjustments are expected for the current fiscal year.
NOTE 8. BORROWINGS FROM OTHER FINANCIAL INSTITUTIONS
The composition of financial obligations measured at amortized cost as of September 30, 2025 is as follows:
Obligations granted by foreign banks
| Financial entity | Minimum rate | Maximum rate | September 30, 2025 |
|---|---|---|---|
| In millions of COP | |||
| Financing with Correspondent Banks (1) (2) (3) | 5.79% | 5.85% | 1,454,330 |
| Total | 1,454,330 |
(2)As of December 31, 2024, there were no financial obligations. see Note 1 Reporting Entity.
(3)See Note 5.1 Hedge of a net investment in a foreign operation
(3)This amount includes translation of interest for COP (2,131) and accrual of interest for COP 47,907
The contractual maturities of financial obligations with foreign entities are as follows:
| September 30, 2025 | |
|---|---|
| In millions of COP | |
| Short term (less than 1 year) | 1,454,330 |
| Total | 1,454,330 |
NOTE 9. PREFERRED SHARES
Cibest recognized a financial liability for the obligation to pay preferential cash dividends to the holders of preferred shares.
Details of the liability related to preferred shares as of September 30, 2025 are as follows:
| September 30, 2025 | |
|---|---|
| In millions of COP | |
| Value received in the partial absorption-type spin-off from Bancolombia to Cibest | 545,873 |
| Interest expense on preferred stock | 23,055 |
| Total | 568,928 |
See Note 10. Share Capital and 13.1 Interest expense.
NOTE 10. SHARE CAPITAL
The subscribed and paid-in capital is the following:
| September 30, 2025 | December 31, 2024 | |
|---|---|---|
| Authorized shares | 1,400,000,000 | 1,000 |
| Subscribed and paid-in shares | 509,704,584 | 1,000 |
| Common shares | (578,737) | - |
| Total shares | 509,125,847 | - |
| Preferred shares issued and fully paid | 452,122,416 | - |
| Preferred shares | (6,673,457) | - |
| Total preferred shares | 445,448,959 | - |
| Total shares | 954,574,806 | - |
| Subscribed and paid capital (nominal value in millions of COP) | 480,914 | - |
| Authorized shares (nominal value, in millions of COP) | 700,000 | - |
Distribution and payment of dividends
Dividends must be approved at the Ordinary General Meeting upon the recommendation of the Board of Directors.
Except in the events indicated below, this approval corresponds to a simple majority of the shares represented at the Meeting.
In accordance with the legal regime applicable to Cibest, the company is required to distribute at least fifty percent (50%) of its net profits, unless shareholders representing seventy-eight percent (78%) of the shares present at the meeting approve a different distribution amount. When the total of the legal, statutory, or occasional reserves exceeds one hundred percent (100%) of subscribed share capital, the mandatory distribution of net profits increases to seventy percent (70%).
Dividend distribution must be made to all shareholders in cash and within the year following the General Assembly in which the dividend was declared. If not paid in cash, the dividend payment—requiring shareholders to receive it in the form of fully paid-up shares of the company—shall require the favorable vote of eighty percent (80%) of the represented ordinary shares and eighty percent (80%) of the subscribed preferred shares with no voting rights.
The annual net profits of Cibest must be applied as follows: (i) first, an amount equal to 10% of Cibest’s net profits to a legal reserve until such reserve is equal to at least 50% of the Cibest’s subscribed share capital; (ii) second, to the payment of the minimum dividend on the preferred shares and without voting rights; and (iii) third, as may be determined in the ordinary annual general ordinary shareholders' meeting by the vote of the holders of a majority of the shares entitled to vote.
Common shares
The holders of common shares are entitled to vote on any matter subject to approval at an annual general ordinary shareholders' meeting. Within 15 calendar days prior to such meeting, such holders are entitled to inspect the books and records of the Company.
Also, the holders of common shares will receive a proportion of the profits subject to the provisions of law, statutes and established at general shareholders’ meeting.The dividend received by holders of common shares may not be higher than the dividend assigned to preferred shares and without voting rights.
Preferred shares with no voting rights
The holders of preferred shares with no voting rights are entitled to receive dividends based on the net profits of the previous year, after deducting the losses affecting the capital and after deducting the amount legally allocated to the legal reserve, but before creating or accruing any other reserve.
The minimum non-cumulative preferred dividend equal to one percent (1%) per annum of the subscription price of the preferred share provided that this dividend is higher than the dividend assigned to the common shares. Otherwise, the dividend will be increased up to an amount equal to the dividend per share of common stock.
The payment of the preferred dividend will be made at the time and in the manner established by the general shareholders' meeting and with the priority established by Colombian law.
Any stock dividend requires the approval of 80% or more of the shares present at a shareholders' meeting, which shall include 80% or more of the outstanding preferred shares. In the absence of such holders of preferred stock, a stock dividend may only be payable to holders of common stock who approve such payment.
Reserved Shares
These are the shares available between the maximum limit of authorized capital and the subscribed share capital. Cibest has 438,173,000 shares in reserve.
NOTE 11. APPROPRIATED RESERVES
As of September 30, 2025 and December 31, 2024, the reserves were made up as follows:
| September 30, 2025 | December 31, 2024 | |
|---|---|---|
| In millions of COP | ||
| Appropriation of net income (1) | 8,578,816 | - |
| Occasional reserve (2) | 1,166,556 | - |
| Reserve for treasury share acquisition (3) | 989,370 | |
| Total reserves (3) | 10,734,742 | - |
(1)In compliance with Article 452 of the Commercial Code of the Republic of Colombia and is mandatory until it reaches fifty percent (50%) of subscribed share capital. The legal reserve serves two specific purposes: to increase and maintain the company’s capital, and to absorb losses arising from operations. Therefore, its balance may not be distributed as dividends to shareholders
(2)The occasional reserve for equity strengthening and future growth.
(3)In accordance with the resolution adopted at the General Shareholders' Meeting held on June 9, 2025, a reserve of COP 1,350,000 was established for the repurchase of own equity instruments. The execution of this transaction began on July 17, 2025. As of September 30, 2025, the balance of this reserve amounted to COP 989,370, which includes transaction costs of COP 26.
(4)See Condensed Interim Statement of Changes in Equity – Separate of Grupo Cibest.
As of September 30, 2025, the movement in the reserve for the reacquisition of shares is as follows:
| September 30, 2025 | |
|---|---|
| In millions of COP | |
| Establishment of a reserve for the repurchase of treasury shares | 1,350,000 |
| Repurchase of ordinary shares (1) | 33,354 |
| Repurchase of preferred shares (2) | 327,250 |
| Balance of the reserve for the repurchase of own shares (3) | 989,396 |
(1) As of September 30, 2025, 578,737 ordinary shares have been repurchased.
(2)As of September 30, 2025, 6,673,457 ordinary shares have been repurchased.
(3)The difference of COP 27 corresponds to the transaction costs of the share repurchase program.
NOTE 12. OPERATING INCOME
The following information corresponds to operating income as of September 30, 2025:
12.1 Net Income from Equity Method Investments
| Accumulated | Quarterly | |
|---|---|---|
| Income from equity participation | As of September 30, 2025 * | From July 1 to September 30, 2025 |
| In millions of COP | ||
| Equity method | 5,663,539 | 2,069,325 |
| Bancolombia S.A. | 4,676,231 | 1,598,726 |
| Banistmo S.A. | 364,864 | 178,843 |
| Banagrícola S.A. and Subsidiaries | 433,020 | 143,085 |
| Grupo Agromercantil Holding | 92,803 | 39,360 |
| Inversiones Cibest S.A.S. | 108,084 | 82,894 |
| Other Subsidiaries | (11,463) | 26,417 |
| Equity method investments in associates and joint ventures | 11,307 | 4,813 |
| Puntos Colombia S.A.S. | 8,319 | 3,990 |
| International Ejecutiva de Aviación S.A.S. | 962 | (202) |
| Protección S.A. | 2,026 | 1,025 |
| Equity Instruments | 88 | 88 |
| Dividends | 5 | - |
| Total net income from equity interest (1) | 5,674,939 | 2,074,226 |
(1)For further information, see Note 5. Investments in Subsidiaries and Note 6. Investments in Associates and Joint Ventures. The difference between the reported values of COP 3,310,283 and COP 6,838, compared to what is indicated in Note 1, "Reporting Entity," corresponds to the effects of the partial spin-off of Bancolombia in favor of Grupo Cibest, amounting to COP 2,353,256 for subsidiaries and COP 4,470 for associates and joint ventures. See Note 1, "Reporting Entity."
12.2 Other operating income
| Accumulated | Quarterly | |
|---|---|---|
| Other operating income. net | As of September 30, 2025 | From July 1 to September 30, 2025 |
| In millions of COP | ||
| Interest income | 41,748 | 26,667 |
| Virtual investment interest | 38,457 | 24,117 |
| Savings account interest | 3,291 | 2,550 |
| Other income | 1,545 | 920 |
| Exchange rate difference | 1,545 | 920 |
| Total other operating income, net | 43,293 | 27,587 |
NOTE 13. OPERATING EXPENSES
The information corresponding to operating expenses as of September 30, 2025:
13.1 Interest expense
| Accumulated | Quarterly | |
|---|---|---|
| Interest expense | As of September 30, 2025* | July 1 to September 30, 2025 |
| In millions of COP | ||
| Interest on preferred shares(1) | 42,425 | 13,775 |
| Interest on financial obligations | 36,263 | 21,665 |
| Total interest expense | 78,688 | 35,440 |
(1) This amount includes COP 19,370 received during the spin-off process. See Reporting Entity note, and the interest accrued from May to September for COP 23,055.
13.2. Other administrative and general expenses
The details of other administrative and general expenses as of September 30, 2025, are as follows:
| Accumulated | Quarterly | |
|---|---|---|
| Other administrative and general expenses | As of September 30, 2025* | July 1 to September 30, 2025 |
| In millions of COP | ||
| Taxes (1) | 11,788 | 558 |
| Audit and board fees | 1,834 | 1,371 |
| Commissions | 474 | 473 |
| Others (2) | 3,263 | 137 |
| Total other administrative and general expenses | 17,359 | 2,539 |
(1) Mainly corresponds to stamp tax paid in connection with the spin-off of Banistmo. (2) Corresponds to payments made to the Medellín Chamber of Commerce for procedures related to the spin-off, including registration tax and stamp tax.
NOTE 14. RELATED PARTY TRANSACTIONS
During the nine-month period ended September 30, 2025, no related party transactions were carried out that had a material impact on Cibest’s financial position or results, except for the transaction described in Note 1 – Reporting Entity.
1
NOTE 15. LIABILITIES FROM FINANCING ACTIVITIES
The following table presents the reconciliation of the balances of liabilities from financing activities as of September 30, 2025:
| Beginning balance as of January 1, 2025 | Cash flows | Changes other than cash | Ending balance as of June 30, 2025 | |||||
|---|---|---|---|---|---|---|---|---|
| Liabilities transferred in the spin-off (1) | Adjustment for the effects of exchange rate changes | Accrued interest | ||||||
| In millions of COP | ||||||||
| Liabilities from financing activities | - | - | - | - | - | - | ||
| Financial obligations (1) | - | - | 1,527,432 | (109,365) | 36,263 | 1,454,330 | ||
| Preferred stock (2) | - | - | 545,873 | - | 23,055 | 568,928 | ||
| Total liabilities from financing activities | - | - | 2,073,305 | (109,365) | 59,318 | 2,023,258 |
(1)The amounts correspond to the restatement of capital by COP 107,233 and restatement of interest by COP 2,131.
(2)*Includes the effects of the partial spin-off from Bancolombia S.A.to Cibest S.A.; see Note 1 Reporting Entity.
NOTE 16. FAIR VALUE OF ASSETS AND LIABILITIES
The characteristics of the asset or liability are considered in determining fair value in the same manner as market participants would consider in pricing the asset or the liability at the measurement date.
Valuation process for fair value measurements
Fair value measurement is performed using the prices, inputs, and methodologies provided by the Group’s official pricing vendor, Precia.
All methodologies and procedures developed by the pricing services provider are supervised by the Superintendence of Finance of Colombia (SFC), which has its authorization.
The following table presents the carrying amount and fair value of assets and liabilities as of September 30, 2025 and December 31, 2024.
| September 30, 2025 | December 31, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| Carrying value | Fair value | Carrying value | Fair value | |||||
| In millions of COP | ||||||||
| Assets | ||||||||
| Equity instruments (1) | 1,067,035 | 1,067,035 | - | - | ||||
| Investments at amortized cost (1) | 7,640 | 7,640 | 38 | 38 | ||||
| Total assets | 1,074,675 | 1,074,675 | 38 | 38 | ||||
| Liabilities | ||||||||
| Financial obligations (2) | 1,454,330 | 1,454,330 | - | - | ||||
| Preferred stock (3) | 568,928 | 375,404 | - | - | ||||
| Total liabilities | 2,023,258 | 1,829,734 | - | - |
(1)See Note 4. Financial assets investments
(2)See Note 8. Borrowings from other financial institutions
(3)See Note 9. Preferred shares
Fair value measurement
Assets and liabilities
a. Equity securities
Cibest performs the market price valuation of its equity investments using the prices provided by the official pricing services provider (Precia), and classifies these investments according to the procedure described at the beginning of this note. Likewise, to determine the fair value of unquoted equity securities, Cibest adjusts the value of the investment based on its ownership percentage and the subsequent changes in the issuer’s equity. Holdings in mutual funds, trusts, and collective portfolios are valued using the unit value calculated by the management company.
Fair value hierarchy
IFRS 13 establishes a fair value hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable, that reflects the significance of inputs adopted in the measurement process. In accordance with IFRS the financial instruments are classified as follows:
Level 1: Observable inputs that reflect quoted prices (unadjusted) in active markets for identical assets or liabilities. An active market is a market in which transactions for the asset or liability being measured take place with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. Level 2 generally includes: (i) quoted prices for similar assets or liabilities in active markets; (ii) quoted prices for identical or similar assets or liabilities in markets that are not active, that is, markets in which there are few transactions for the asset or liability.
Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using
pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.
This category generally includes certain retained residual interests in securitizations, asset-backed securities (ABS) and highly structured or long-term derivative contracts where independent pricing information was not able to be obtained for a significant portion of the underlying assets.
Assets and liabilities measured at fair value on a recurring basis
The following table presents assets and liabilities by fair value hierarchy that are measured on a recurring basis as of September 30, 2025 and December 31, 2024:
| ASSETS | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Instrument type | September 30, 2025 | December 31, 2024 | |||||||||||||||
| Valuation hierarchy | Total fair value | Valuation hierarchy | Total fair value | ||||||||||||||
| Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||
| In millions of COP | |||||||||||||||||
| Equity instruments | |||||||||||||||||
| Equity instruments at fair value | - | 3,388 | 4,252 | 7,640 | 38 | - | - | 38 | |||||||||
| Total equity instruments | - | 3,388 | 4,252 | 7,640 | 38 | - | - | 38 | |||||||||
| Total assets | - | 3,388 | 4,252 | 7,640 | 38 | - | - | 38 |
Fair value of assets and liabilities that are not measured at fair value in the statement of financial position
The following table presents for each level of the fair value hierarchy Cibest's assets and liabilities that are not measured at fair value in the statement of financial position, however, the fair value as of September 30, 2025 and December 31, 2024:
| ASSETS | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Instrument type | September 30, 2025 | December 31, 2024 | |||||||||||||||
| Valuation hierarchy | Total fair value | Valuation hierarchy | Total fair value | ||||||||||||||
| Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||
| In millions of COP | |||||||||||||||||
| Equity instruments | - | - | 1,067,035 | 1,067,035 | - | - | - | - | |||||||||
| Total | - | - | 1,067,035 | 1,067,035 | - | - | - | - | |||||||||
| LIABILITIES | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Instrument type | September 30, 2025 | December 31, 2024 | |||||||||||||||
| Valuation hierarchy | Total fair value | Valuation hierarchy | Total fair value | ||||||||||||||
| Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||
| In millions of COP | |||||||||||||||||
| Financial obligations | - | - | 1,454,330 | 1,454,330 | - | - | - | - | |||||||||
| Preferred stock | - | - | 375,404 | 375,404 | - | - | - | - | |||||||||
| Total | - | - | 1,829,734 | 1,829,734 | - | - | - | - |
IFRS requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized in the statement of financial position, for which it is practicable to estimate fair value. Certain categories of assets and liabilities, however, are not eligible for being measured at fair value.
The financial instruments below are not measured at fair value on a recurring and nonrecurring basis:
Short-term financial instruments
Short-term financial instruments are valued at their carrying amounts included in the consolidated statement of financial position, which are reasonable estimates of fair value due to the relatively short period to maturity of the instruments. This approach was used for cash and cash equivalents, accrued interest receivable, customers’ acceptances, accounts receivable, accounts payable, accrued interest payable and bank acceptances outstanding.
Borrowings from other financial institutions
The fair value of borrowings from other financial institutions were determined using discounted cash flow models. The cash flows projection of capital and interest was made according to the contractual terms, considering capital amortization and interest bearing. Subsequently, the cash flows were discounted using reference curves formed by the weighted average of the Cibest’s deposit rates.
Preferred shares
In the valuation of the liability component of preferred shares related to the minimum dividend of 1% of the subscription price, Cibest uses the Gordon Model to price the obligation, taking into account its own credit risk, which is measured using the market spread based on observable inputs such as quoted prices of sovereign debt. The Gordon Model is commonly used to determine the intrinsic value of a stock based on a future series of dividends that are estimated by Cibest and growth at a constant rate considering the Cibest’s own perspectives of the payout ratio.
Changes in level 3 fair-value category
The table below presents reconciliation for assets and liabilities measured at fair value, on a recurring basis using significant unobservable inputs as of September 30, 2025 and December 31, 2024:
As of September 30, 2025
| Instrument type | Balance January 01, 2024 | Included in income | Incluided in OCI | Purchases | Sales | Prepayments | Reclassifications | Transfers to Level 3 | Transfers out of Level 3 | Balance December 31, 2024 |
|---|---|---|---|---|---|---|---|---|---|---|
| In millions of COP | ||||||||||
| Assets | ||||||||||
| Equity investments at fair value | 38 | - | 5 | 4,247 | - | - | (38) | - | - | 4,252 |
| Total assets | 38 | - | 5 | 4,247 | - | - | (38) | - | - | 4,252 |
Level 3 fair value – transfers
The following were the significant level 3 transfers at September 30, 2025:
Transfers between Level 1 and Level 2 to Level 3:
As of September 30, 2025, no level transfers were reported for Cibest.
Transfers between Level 3 and Level 1 and 2:
As of September 30, 2025, no level transfers were reported for Cibest.
Transfers between Level 2 and Level 1 of the Fair Value hierarchy
As of September 30, 2025, no level transfers were reported for Cibest.
Quantitative Information about Level 3 Fair Value measurements
The fair value of financial instruments is, in certain circumstances, measured using valuation techniques that incorporate assumptions that are not evidenced by prices from observable market transactions in the same instrument and are not based on observable market data. Changing one or more of the inputs to the valuation models to reasonably possible alternative assumptions would change the fair values and therefore a valuation adjustment would be recognized through income statement. Favorable and unfavorable changes are determined on the basis of changes in the value of the instrument as a result of varying the levels of the unobservable input.
The following table sets forth information about significant unobservable inputs related to the Cibest’s material categories of level 3 financial assets and liabilities and the sensitivity of these fair values to reasonably possible alternative assumptions.
As of September 30, 2025
| Instrument type | Fair value | Valuation technique | Significant unobservable input | Range of inputs | Weighted average | Input sensitivity increased by 100 bps | Input sensitivity decreased by 100 bps |
|---|---|---|---|---|---|---|---|
| In millions of COP | |||||||
| Equity instruments | 4,252 | Based on price | Price | NA | NA | NA | NA |
NOTE 17. EVENTS AFTER THE REPORTING PERIOD
The financial statements of Grupo Cibest S.A. for the fiscal year ending September 30, 2025, were approved by the Vice President of Strategy and Finance for issuance on November 6, 2025.
On October 21, 2025, Banistmo completed the partial spin-off of 100% of its shares in Valores Banistmo to Cibest Panamá Assets S.A., a Panamanian company wholly owned by Grupo Cibest. For more information, see Note 1. Reporting Entity.
RISK MANAGEMENT
In the economic sphere, throughout the year, the continuation of the global macroeconomic stabilization process has been confirmed, supported by a gradual improvement in the growth pace of several developed and emerging economies. At the same time, upward risks to inflation remain relevant, in an environment of high indexation in service prices and increased trade barriers, which could exert inflationary pressures toward the end of 2025 and into 2026. Additionally, geopolitical conflicts and the deterioration of public finances in certain regions have contributed to increased volatility in international financial markets.
CREDIT RISK
Credit risk is the risk of an economic loss to the Group due to a non-fulfillment of financial obligations by a customer or counterparty and arises principally from the decline on borrower´s creditworthiness or changes in the business climate.
Credit Risk Management – investment financial instruments
The Group maintains the control and continuous monitoring of the assigned credit risk limits, as well as the consumption thereof. Additionally, the Bank and its subordinates follows up and manages alerts on counterparties and issuers of securities, based on public market information and news related to their performance; this allows mitigating the risks of default or reduction of value for the managed positions.
Credit Quality Analysis - investment financial instruments
In order to evaluate the credit quality of a counterparty or issuer (to determine a risk level or profile), the Group relies on two rating systems: an external one and
an internal one, both of which allow to identify a degree of risk differentiated by segment and country and to apply the policies that have been established for issuers or counterparties with different levels of risk, in order to limit the impact on liquidity and/or the income statement of the Bank and its subordinates.
External credit rating system: is divided by the type of rating applied to each instrument or issuer; in this way the geographic location, the term and the type of instrument allow the assignment of a rating according to the methodology that each examining agency uses.
Internal credit rating system: the “ratings or risk profiles” scale is created with a range of levels that go from low risk to high risk (this can be reported in numerical or alphanumerical scales), where the rating model is sustained by the implementation and analysis of qualitative and quantitative variables at sector level, which according to the relative analysis of each variable, determine credit quality; in this way the internal credit rating system aims to establish adequate margin in decision-making regarding the management of financial instruments.
In accordance with the criteria and considerations specified in the internal rating allocation and external credit rating systems methodologies, the following schemes of relation can be established, according to credit quality given to each one of the qualification scales:
Low Risk: all investment grade positions (from AAA to BBB-), as well as those issuers that according to the information available (financial statements, relevant information, external ratings, CDS, among others) reflect adequate credit quality.
Medium Risk: all speculative grade positions (from BB+ to BB-), as well as those issuers that according to the available information (Financial statements, relevant information, external qualifications, CDS, among others) reflect weaknesses that could affect their financial situation in the medium term.
High Risk: all positions of speculative grade (from B+ to D), as well as those issuers that according to the information available (Financial statements, relevant information, external qualifications, CDS, among others) reflect a high probability of default of financial obligations or that already have failed to fulfill them.
The credit risk rating of the Republic of Colombia was downgraded following the latest reports issued on June 26, 2025 by Moody’s (to Baa3) and S&P (to BB). As a result, positions in Colombian sovereign debt and Colombian issuers have been reclassified to the medium-risk category.
•Credit Quality Analysis
| September 30, 2025 | ||
|---|---|---|
| Debt Instruments | Equity | |
| In Millions of COP | ||
| Maximum Exposure to Credit Risk | ||
| Low Risk | — | — |
| Medium Risk | 1,067,144 | 3,388 |
| Hihg Risk | — | — |
| Without Rating | — | 4,252 |
| Total | 1,067,144 | 7,640 |
•Financial credit quality of investment financial instruments:
Debt instruments: 100% of the debt instruments are not in default.
Equity: The positions that do not represent significant risks are not in default.
•Maximum exposure level to the credit risk given:
| Maximum Exposure | Collateral | Net Exposure | |
|---|---|---|---|
| September 30, 2025 | |||
| In Millions of COP | |||
| Maximum Exposure to Credit Risk | |||
| Debt Instruments (1) | 1,067,144 | — | 1,067,144 |
| Equity (1) | 7,640 | — | 7,640 |
| Total | 1,074,784 | — | 1,074,784 |
(1) See NOTE 4.Financial assets investments
MARKET RISK
Market risk refers to the possibility of incurring losses because of changes in share prices, interest rates and exchange rates.
At Cibest, market risks are identified, measured, monitored, controlled and communicated to make timely decisions for their adequate mitigation and to generate greater added value for shareholders. The guidelines or risk framework, policies and methodologies for market risk management are approved by the Board of Directors.
Measurement, management and control of market risks, an internal methodology is used by weighted historical simulation, using a confidence level of 99%, a holding period of 10 days, and a time window of one year or 250 daily data.
Market Risk Management
This section describes the market risk to which Cibest is exposed, as well as the tools and methodologies used in its measurement as of September 2025. Cibest total exposure to market risk has registered a Value at Risk (VaR) of COP 694,596. This result is mainly due to exposure to the exchange rate factor, originating from the position denominated in US dollars corresponding to COP 4.4 billion. Additionally, although to a lesser extent, the COP 3,388 participation in the Renta Liquidez Investment Fund contributed to a slight diversification. Details are presented in the table below:
| Risk factor | September 30th, 2025 |
|---|---|
| In millions of COP | |
| End of period | |
| Exchange rate | 694,607 |
| Collective investment funds (1) | (11) |
| Total VaR | 694,596 |
(1) The Collective Investment Fund has a negative correlation with respect to the exchange rate position, generating a diversification effect, which contributes to a reduction in the total market risk of the portfolio.
Assumptions and limitations of VaR model
Although VaR models represent a recognized tool for risk management, they have inherent limitations, including reliance on historical data that may not be indicative of the future behavior of market variables. Accordingly, VaR models should not be considered predictive of future outcomes. In this regard, an entity could incur losses that exceed the values indicated by the models for a specific day or period, i.e. VaR models do not calculate the largest possible loss. Accordingly, the results of these models and the analysis of these models are subject to the expertise and reasonable judgement of those involved in the entity's risk management.
LIQUIDITY RISK
Liquidity risk is understood as the inability to meet payment obligations in a full and timely manner on the corresponding dates due to insufficient liquid resources and/or the need to assume excessive funding costs.
Liquidity risk management policies and guidelines are defined through the various senior management levels. These levels consist of the board of directors, the risk committee and senior management, and are responsible for defining the risk appetite and hence the financial strategy to be followed.
The measures to control liquidity risk include the definition of liquidity limits, which allow a proactive assessment of the entity's level of exposure. The methodologies used to control liquidity risk include cash flows in the different currencies in which operations are conducted.
Exposure to liquidity risk
To estimate liquidity risk, a cash flow is calculated to ensure that liquid assets held are sufficient to cover potential net cash outflows in 30 days. The liquidity indicator is presented as follows:
| Liquidity Coverage Ratio | September 30, 2025 |
|---|---|
| In millions of COP | |
| Net cash outflows into 30 days | (8,832) |
| Liquid Assets | 55,526 |
| Liquidity coverage ratio | 46,694 |
The following table provides further details on Cibest's liquid assets:
| Liquid Assets(2) | September 30th, 2025 |
|---|---|
| In millions of COP | |
| Cash COP | 51,042 |
| Cash USD (3) | 1,774 |
| Collective investment funds (4) | 2,710 |
| Total Liquid Assets | 55,526 |
(1) Liquid assets: Liquid assets will be considered those that are easily realized that form part of the entity's portfolio or those that have been received as collateral in active operations in the money market, and that have not been subsequently used in passive operations in the monetary market and do not have any mobility restrictions. The following are considered liquid assets: available assets, shares in open collective investment funds without a permanence agreement, shares registered on the Colombian stock exchange that are eligible to be subject to repo or repo operations, and negotiable investments available for sale. sale of fixed income securities.
(3) The amount available in US dollars is subject to a haircut or reduction equivalent to 21.6%.
(4) Renta Liquidez Collective Investment Fund is subject to a haircut or reduction of 20%.
Contractual maturities of financial assets and liabilities
Contractual maturities of principal and interest on financial assets are presented below:
Contractual maturities of assets at September 2025
| Assets | 0-30 days | 31 days -1 year | 1-3 years | 3-5 years | Over 5 years |
|---|---|---|---|---|---|
| In millions of COP | |||||
| Cash and cash equivalents | 53,305 | - | - | - | - |
| Securities | 624,286 | 442,749 | - | - | - |
| Total Assets | 677,591 | 442,749 | - | - | - |
Contractual maturities of principal and interest on liabilities are presented below:
Contractual maturities of liabilities as at September 2025
| Liabilities | 0-30 days | 31 days -1 year | 1-3 years | 3-5 years | Over 5 years |
|---|---|---|---|---|---|
| In millions of COP | |||||
| Financial obligations | - | 1,454,330 | - | - | - |
| Preferred stock | - | - | - | - | 568,928 |
| Total Liabilities | - | 1,454,330 | - | - | 568,928 |