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6-K 1 cib-20250330x6k1q25.htm 6-K Document
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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 May 2025
Commission File Number 001-32535
Bancolombia 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-____________ .
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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.
BANCOLOMBIA S.A.
(Registrant)
Date May 15, 2025
 By: /s/ MAURICIO BOTERO WOLFF.
Name: Mauricio Botero Wolff.
Title: Vice President of Strategy and Finance


May 15, 2025
Medellin, Colombia


BANCOLOMBIA S.A. RELEASES QUARTERLY REPORT FOR THE FIRST QUARTER OF 2025

On May 6th of 2025, Bancolombia S.A. (“Bancolombia”) furnished on Form 6-K a press release presenting financial information for the fiscal quarter ended March 31, 2025 (the “Press Release”). Since 2023, Bancolombia is also required to file quarterly reports with the Superintendency of Finance of Colombia (SFC), which include a description of material changes relative to the information provided in its most recent annual report.

The quarterly report for the fiscal quarter ended March 31, 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 March 31, 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 the separate or individual financial information of Bancolombia that is included in the Quarterly Report was prepared solely in accordance with Colombian law, and not international or U.S. standards.


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Quarterly Report
January - March 2025


Bancolombia S.A.
Address:
Carrera 48 # 26-85
Medellín, Colombia
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ISSUER’S CURRENT SECURITIES
As of March 31, 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 509,704,584 452,122,416
Shareholders
18,890 27,786
Issuance amount
509,704,584 452,122,416
Amount placed
509,704,584 452,122,416
Bancolombia S.A. also has a Level III ADR listed on the New York Stock Exchange (NYSE). Each ADR represents four preferred shares.
GRUPO BANCOLOMBIA INTERNATIONAL BONDS IN USD
(As of March 31, 2025)
Isin Bond Amount Interest Rate Date of Issuance Maturity Date
Subordinates
US05968LAK89 BCOLO SUB-27 USD $462 MM 6.909% October 18, 2017 October 18, 2027
US05968LAN29 BCOLO SUB-34 USD $800 MM 8.625% June 24, 2024 December 24, 2034
Common
US06034LAB62 BANISTMSR 27 USD $400 MM 4.250% July 31, 2020 July 31, 2027
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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
CONSOLIDATED BALANCE SHEET GROUP BANCOLOMBIA
Assets
As of March 31, 2025, Grupo Bancolombia’s assets amounted COP 364,125 billion, decreasing by 2.2% compared to 4Q24, mainly due to a lower cash position resulting from the appreciation of dollar balances at a lower exchange rate. At the same time, the total loan portfolio balance declined, primarily driven by a contraction in the consumer segment

The Colombian peso appreciated by 4.9% against the dollar during the 1Q25 but depreciated by 9.1% over the last 12 months. The average exchange rate was 2.9% higher in 1Q25 compared to 4Q24 and 6.9% over the last 12 months.
Loan Portfolio
Gross loan portfolio decreased compared with the last quarter mainly due to the appreciation of the Colombian peso against the US dollar. Excluding foreign exchange effects, the portfolio would have expanded by 1.3% compared to 4Q24, reflecting modest growth attributable to our more stringent origination policies.

In 1Q25, the gross loan portfolio declined by 0.3% (increased by 1.3% when excluding FX) compared to 4Q24 and increased by 7% compared to 1Q24. In the last 12 months, the loan portfolio in Colombian pesos grew by 6.3% and the portfolio in dollars by 8.5%.

Operations at Banco Agricola (El Salvador), Banistmo (Panama), and Bam (Guatemala) represented 25.5% of the total gross loan portfolio balance in 1Q25. The loan portfolio denominated in currencies other than the Colombian peso represented 31.9% of the total portfolio and decreased by 6.4% (measured in USD) during the quarter.

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Allowances for loan losses decreased by 4.0% during the quarter, totaling COP 15,533 billion equivalent to 5.6% of the gross loan portfolio.

Quarterly, Bancolombia S.A.'s gross loan portfolio grew by 2.4%, Banco Agromercantil by 0.7% (measured in USD), Banco Agricola by 1.5% (measured in USD), and Banistmo declined by 0.7% (measured in USD). In Colombia, the mortgage and commercial loan portfolios had incremental volumes, while the consumer portfolio decreased except for payroll loans. It is worth noting that Nequi experienced robust growth in new originations in personal loans. Banco Agricola demonstrated resilience in the consumer segment with quarterly growth, following the trend from the previous year, focusing on segments with higher risk-adjusted returns.
Investment Portfolio
As of March 31, 2025, Bancolombia Group’s investment portfolio amounted to COP 36,394 billion, reflecting a decrease of 3.1% compared to 4Q24 and an increase of 28.1% relative to 1Q24. Positions in active liquidity operations decreased due to higher liquidity requirements compared to the previous quarter. At the end of the first quarter of 2025, the investment portfolio in debt securities had an average duration of 16.7 months and a yield to maturity of 10.47%.
Goodwill and Intangibles
At the close of 1Q25, Grupo Bancolombia's intangibles and goodwill totaled COP 9,301 billion, a decrease of 4.8% compared to 4Q24. This variation is mainly due to the appreciation of the peso against the dollar and the restatement of balances from foreign subsidiaries.
Funding
As of March 31, 2025, Bancolombia Group's liabilities totaled COP 322,436 billion, decreasing by 1.6% compared to 4Q24 and increasing by 7.7% compared to 1Q24.

Customer deposits totaled COP 276,030 billion (85.6% of liabilities) at the end of 1Q25, showing a decrease of 1.1% compared to 4Q24, mainly explained by the decrease in checking accounts, primarily in the corporate and SME segments, due to the reduction of surplus balances from the previous quarter. The net loan to deposit ratio was 95.3% at the end of 1Q25, an increase compared to the 94.3% recorded in 4Q24, due to the lower quarterly decline rate of the loan portfolio over deposits.

In the funding mix, sight deposits continue to be the main source of funding, representing 53% of the total. While savings accounts fell in absolute terms this quarter, they represented a higher share of total funding, reaching 41% of funds. Meanwhile, time deposits increased their share to 37%, driven by online time deposits from retail clients, maintaining the trend observed last year. The balance of loans with financial institutions decreased, mainly due to the prepayment of foreign currency obligations, highlighting the early cancellation of a syndicated loan at Banistmo.
Shareholders’ Equity and Regulatory Capital
Shareholders' equity attributable at the end of 1Q25 was COP 40,634 billion, a decrease of 6.7% compared to 4Q24 and an increase of 11.4% compared to 1Q24. In March 2025, the earnings distribution of COP 3.75 trillion was approved, explaining the quarterly reduction in equity.

Bancolombia Group's total solvency ratio under Basel III was 12.91% in 1Q25, exceeding the required minimum by 141 basis points. The Tier 1 capital ratio was 11.16%, 266 basis points above the minimum requirement. The decline in solvency levels is mainly due to the distribution of earnings. The tangible equity ratio, defined as the ratio of equity minus goodwill and intangible assets to tangible assets, stood at 8.58% at the end of 1Q25.
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Consolidated Income Statement Bancolombia Group
Net income attributable to equity holders totaled COP 1,738 billion in 1Q25, or COP 1,822.1 per share (USD $1.74 per ADR), increased by 4.5% compared to 4Q24 mainly due to lower operating expenses. Although provisions increased compared to the previous quarter, they remain below the average of the past three years, which contributed positively to net income. Grupo Bancolombia's annualized ROE was 16.3% in 1Q25 and 15.6% over the last 12 months.
Net Interest Income
Net interest income was COP 5,064 billion in 1Q25, representing an increase of 0.8% compared to 4Q24. This increase is due to the reduction in interest expenses, attributable to lower costs of deposits, resulting from a decrease in the balance of savings and checking accounts and a reduction in the rate of time deposits during the quarter. Additionally, interest income decreased due to lower interest rates applicable to new originations and the variable-rate loan portfolio.

Furthermore, interest income from debt instruments and the valuation of financial instruments amounted to COP 599 billion, which represents a 20.3% decrease for the quarter. This variation mainly responds to the reduction in liquidity operations.
Net Interest Margin
During the first quarter of 2025, despite stable interest rates, interest income showed a slight decline due to a moderate decrease in the loan portfolio. Valuation income from financial instruments also fell compared to the previous quarter, reflecting lower investment returns. In contrast, interest expenses declined due to lower costs on time deposit and passive liquidity operations.

The quarterly annualized loan portfolio margin was 7.00%, increasing by 15 basis points compared to 4Q24 and decreasing by 63 basis points compared to 1Q24. The investment NIM dropped 83 basis points to 2.80%. The consolidated NIM rose by 2 basis points from 6.41% to 6.43%.
Time deposits increased by 1.4% compared to 4Q24, while savings and checking accounts decreased by 0.4% and 6.4%, respectively. The annualized weighted average cost was 4.09% in 1Q25, a reduction of 37 basis points compared to 4Q24.

The Central Bank of Colombia kept the monetary policy rate unchanged during the first quarter of 2025.
Fees and Income from Services
Net income from commissions and other services in the first quarter of 2025 was COP 1,018 billion, recording a decrease of 6.1% compared to 4Q24 and an increase of 0.5% compared to 1Q24.

On a quarterly basis, Bancassurance revenues experienced the largest decline, in nominal terms, due to lower origination dynamics of the consumer segment. Additionally, there was a reduction in debit and credit card commissions, as well as affiliated establishments’ fees, attributable to lower transaction volume compared to the fourth quarter of 2024.

The decrease in commission expenses this quarter reflects lower transaction volume compared to the previous quarter, driven by seasonal factors as year-end typically involves greater activity.
Other Operating Income
In 1Q25, other operating income totaled COP 846 billion, a decrease of 6.9% compared to 4Q24. This was primarily due to the lower result in appraisal of investment properties by Bancolombia and Fondo Inmobiliario Colombia (FIC). Operating lease income amounted to COP 448 billion, decreasing by 6.0% from the previous quarter, owing to the reduction in vehicle leasing and subleasing operations at Bancolombia and Renting Colombia.
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Dividends Received, and Share of Profits
Total dividends and other net income from equity investments in 1Q25 amounted to COP 137 billion. This represents a decrease of 10.4% compared to 4Q24 and an increase of 61.9% compared to 1Q25. The quarterly decline is due to lower dividend income from FCP Fondo Inmobiliario Colombia deriving from the performance of P.A. Viva Malls.
Asset Quality, Provision Charges and Balance Sheet Strength
The principal balance for past due loans (those that are overdue for more than 30 days) totaled COP 12,582 billion at the end of 1Q25, representing 4.64% of the total gross portfolio. Meanwhile, 90-day past-due totaled COP 8,609 billion, equivalent to 3.17%. Both indicators showed a decrease during the quarter, reflecting better performance from new vintages, a strategic focus on lower-risk segments, mainly in the consumer portfolio, and a successful debt collection process.

The coverage, measured by the ratio of allowances for loan losses (principal) to past-due loans (30 days overdue), was 111.16% at the end 1Q25, experiencing a decrease compared to 112.39% in 1Q24. Loan deterioration (new past-due loans including write-offs) during 1Q25 was COP 1,153 billion. This lower value compared to the last quarter of 2024 is mainly due to better performance in the segment of individuals and small and medium-sized enterprises.

Provision charges (after recoveries) totaled COP 1,099 billion in the first quarter of 2025, representing an increase of 18.3% compared to the fourth quarter of 2024. Despite a decrease in provision expenses within the individuals, SMEs, and large exposures segments, the sequential variation reflects the lack of a provisions release in the consumer segment, unlike the previous quarter.

Provisions as a percentage of the average gross portfolio, quarterly annualized, was 1.59% for 1Q25 and 1.94% for the last 12 months. Grupo Bancolombia maintains a balanced position supported by an adequate level of past-due loan reserves. Loan loss provisions (for the principal) totaled COP 13,986 billion, or 5.2% of the gross portfolio at the end 1Q25, decreasing compared to 4Q24.
Operating Expenses
During 1Q25, operating expenses totaled COP 3,502 billion, showing a decrease of 7.7% compared to 4Q24 and an increase of 9.8% compared to 1Q24.

Efficiency was 49.6% in 1Q25 and 49.8% for the last 12 months. Personnel expenses (salaries, employee benefits, and bonuses) amounted to COP 1,530 billion in 1Q25, representing a decrease of 0.2% compared to 4Q24 due to lower bonus expenses, partially offset by the salary increase at the beginning of the year and an increase of 14.7% compared to 1Q24, mainly explained by the annual salary adjustment.

General expenses totaled COP 1,972 billion in the quarter, decreasing by 12.9% compared to the previous quarter and increasing by 6.3% compared to 1Q24. The quarterly decrease is mainly due to lower expenses on technology fees related to projects, license amortization, and marketing, which are usually lower compared to the last quarter of the year. The annual increase is mainly due to higher costs of technology maintenance and licensing,

As of March 31, 2025, Grupo Bancolombia had 34,182 employees, 852 branches, 6,103 ATMs, 34,563 banking agents, and over 33 million customers.
Taxes
Bancolombia Group's income tax reported an expense of COP 699 billion, with an effective rate of 29%. This is due to the tax benefits in Colombia derived from tax-exempt income from the mortgage loan portfolio for social housing, investments in productive fixed assets, and investments in unconventional renewable energies, as well
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as tax considerations in Guatemala, El Salvador, and Panama related to tax-exempt income from returns on securities issued by those governments.
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BALANCE SHEET Change
(COP million) Mar-24 Dic-24 Mar-25 Dec-24 / Mar-25 Mar-24 / Mar-25 % of Assets % of Liabilities
ASSETS
Cash and balances at central bank 19,282,299  24,881,536  20,493,453  -17.64  % 6.28  % 5.63  %
Interbank borrowings 3,573,910  2,239,615  4,345,084  94.01  % 21.58  % 1.19  %
Reverse repurchase agreements and other similar secured lend 3,830,238  5,722,948  3,436,757  -39.95  % -10.27  % 0.94  %
Financial assets investment 28,403,482  37,570,270  36,394,058  -3.13  % 28.13  % 9.99  %
Derivative financial instruments 4,380,648  2,938,142  2,529,449  -13.91  % -42.26  % 0.69  %
Loans and advances to customers 260,307,575  279,453,908  278,523,005  -0.33  % 7.00  % 76.49  %
Allowance for loan and lease losses (16,202,229) (16,179,738) (15,532,803) -4.00  % -4.13  % (4.27) %
Investment in associates and joint ventures 3,085,317  2,928,984  2,962,639  1.15  % -3.98  % 0.81  %
Goodwill and Intangible assets, net 8,526,951  9,767,903  9,301,046  -4.78  % 9.08  % 2.55  %
Premises and equipment, net 6,096,009  5,906,064  5,708,321  -3.35  % -6.36  % 1.57  %
Investment property 4,712,762  5,580,109  5,608,037  0.50  % 19.00  % 1.54  %
Right of use assets 1,614,679  1,757,206  1,725,559  -1.80  % 6.87  % 0.47  %
Prepayments 841,922  907,620  988,935  8.96  % 17.46  % 0.27  %
Tax receivables 1,534,466  1,943,780  1,303,756  -32.93  % -15.04  % 0.36  %
Deferred tax 686,104  763,757  692,119  -9.38  % 0.88  % 0.19  %
Assets held for sale and inventories 1,019,827  1,106,399  816,077  -26.24  % -19.98  % 0.22  %
Other assets 5,262,469  4,926,879  4,829,819  -1.97  % -8.22  % 1.33  %
Total assets 336,956,429  372,215,382  364,125,311  -2.17  % 8.06  % 100.00  %
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Deposit by customers 244,809,882  279,059,401  276,030,117  -1.09  % 12.75  % 75.81  % 85.61  %
Interbank Deposits 571,278  716,493  634,414  -11.46  % 11.05  % 0.17  % 0.20  %
Derivative financial instrument 5,047,208  2,679,643  2,516,148  -6.10  % -50.15  % 0.69  % 0.78  %
Borrowings from other financial institutions 14,112,000  15,689,532  11,899,337  -24.16  % -15.68  % 3.27  % 3.69  %
Debt securities in issue 14,454,604  11,275,216  10,878,328  -3.52  % -24.74  % 2.99  % 3.37  %
Lease liability 1,761,026  1,889,364  1,857,875  -1.67  % 5.50  % 0.51  % 0.58  %
Preferred shares 541,340  584,204  541,340  -7.34  % 0.00  % 0.15  % 0.17  %
Repurchase agreements and other similar secured borrowing 1,022,224  1,060,472  1,265,728  19.36  % 23.82  % 0.35  % 0.39  %
Current tax 694,914  156,162  755,481  383.78  % 8.72  % 0.21  % 0.23  %
Deferred tax 1,844,141  2,578,504  2,734,413  6.05  % 48.28  % 0.75  % 0.85  %
Employees benefit plans 910,844  951,555  941,706  -1.04  % 3.39  % 0.26  % 0.29  %
Other liabilities 13,736,404  10,990,561  12,381,389  12.65  % -9.86  % 3.40  % 3.84  %
Total liabilities 299,505,865  327,631,107  322,436,276  -1.59  % 7.66  % 88.55  % 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  4,857,454  4,857,454  0.00  % 0.00  % 1.33  %
Appropriated reserves 22,657,865  22,575,837  24,302,796  7.65  % 7.26  % 6.67  %
Retained earnings 4,344,094  8,983,057  5,299,318  -41.01  % 21.99  % 1.46  %
Accumulated other comprehensive income, net of tax 4,145,214  6,645,206  5,693,944  -14.32  % 37.36  % 1.56  %
Stockholders’ equity attributable to the owners of the parent company 36,485,541  43,542,468  40,634,426  -6.68  % 11.37  % 11.16  %
Non-controlling interest 965,023  1,041,807  1,054,609  1.23  % 9.28  % 0.29  %
Total liabilities and equity 336,956,429  372,215,382  364,125,311  -2.17  % 8.06  % 100.00  %
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INCOME STATEMENT As of Change Change
(COP million) Mar-24 Mar-25 Mar-25 / Mar-24 1Q24 4Q24 1Q25 1Q25 / 4Q24 1Q25 / 1Q24
Interest income and expenses
Interest on loans and financial leases
Commercial 4,198,007  3,828,165  (8.81) % 4,198,007  4,020,316  3,828,165  (4.78) % (8.81) %
Consumer 2,152,163  1,977,301  (8.12) % 2,152,163  2,097,577  1,977,301  (5.73) % (8.12) %
Small business loans 53,704  61,442  14.41  % 53,704  56,652  61,442  8.46  % 14.41  %
Mortgage 1,013,052  1,096,470  8.23  % 1,013,052  869,766  1,096,470  26.06  % 8.23  %
Financial leases 954,825  800,230  (16.19) % 954,825  817,815  800,230  (2.15) % (16.19) %
Total interest income on loans and financial leases 8,371,751  7,763,608  (7.26) % 8,371,751  7,862,126  7,763,608  (1.25) % (7.26) %
Interest income on overnight and market funds 61,823  50,969  (17.56) % 61,823  34,611  50,969  47.26  % (17.56) %
Interest and valuation on financial instruments
Interest on debt instruments using the effective interest method 257,774  233,730  (9.33) % 257,774  231,613  233,730  0.91  % (9.33) %
Valuation on financial instruments
Debt investments 298,273  399,865  34.06  % 298,273  222,255  399,865  79.91  % 34.06  %
Derivatives 6,314  (42,830) (778.33) % 6,314  249,134  (42,830) (117.19) % (778.33) %
Repos 108,392  (11,265) (110.39) % 108,392  46,152  (11,265) (124.41) % (110.39) %
Others (6,933) 19,382  (379.56) % (6,933) 2,343  19,382  727.23  % (379.56) %
Total valuation on financial instruments 406,046  365,152  (10.07) % 406,046  519,884  365,152  (29.76) % (10.07) %
Total Interest on debt instruments and valuation on financial instruments 663,820  598,882  (9.78) % 663,820  751,497  598,882  (20.31) % (9.78) %
Total interest and valuation on financial instruments 9,097,394  8,413,459  (7.52) % 9,097,394  8,648,234  8,413,459  (2.71) % (7.52) %
Interest expense
Borrowings from other financial institutions (401,573) (272,541) (32.13) % (401,573) (307,818) (272,541) (11.46) % (32.13) %
Overnight funds (4,553) (6,245) 37.16  % (4,553) (6,195) (6,245) 0.81  % 37.16  %
Debt securities in issue (285,171) (208,711) (26.81) % (285,171) (289,370) (208,711) (27.87) % (26.81) %
Deposits (3,187,874) (2,803,210) (12.07) % (3,187,874) (2,965,477) (2,803,210) (5.47) % (12.07) %
Preferred shares (14,837) (14,837) —  % (14,837) (14,726) (14,837) 0.75  % —  %
Lease liabilities (33,214) (33,829) 1.85  % (33,214) (33,113) (33,829) 2.16  % 1.85  %
Other interest (11,857) (10,086) (14.94) % (11,857) (8,729) (10,086) 15.55  % (14.94) %
Total interest expenses (3,939,079) (3,349,459) (14.97) % (3,939,079) (3,625,428) (3,349,459) (7.61) % (14.97) %
Net interest margin and valuation on financial instruments before impairment on loans and financial leases, off balance sheet credit instruments and other financial instruments 5,158,315  5,064,000  (1.83) % 5,158,315  5,022,806  5,064,000  0.82  % (1.83) %
Credit impairment charges on loans and advance and financial leases (1,503,960) (1,274,877) (15.23) % (1,503,960) (1,255,404) (1,274,877) 1.55  % (15.23) %
Recovery of charged - off loans 169,097  171,353  1.33  % 169,097  326,947  171,353  (47.59) % 1.33  %
Credit impairment charges on off balance sheet credit instruments 6,836  (5,710) (183.53) % 6,836  6,355  (5,710) (189.85) % (183.53) %
Credit impairment charges/recovery on investments 13,047  9,685  (25.77) % 13,047  (7,648) 9,685  (226.63) % (25.77) %
Total credit impairment charges, net (1,314,980) (1,099,549) (16.38) % (1,314,980) (929,750) (1,099,549) 18.26  % (16.38) %
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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 3,843,335  3,964,451  3.15  % 3,843,335  4,093,056  3,964,451  (3.14) % 3.15  %
Fees and commission income
Banking services 248,834  293,287  17.86  % 248,834  307,277  293,287  (4.55) % 17.86  %
Credit and debit card fees and commercial establishments 785,022  829,936  5.72  % 785,022  879,235  829,936  (5.61) % 5.72  %
Brokerage 6,951  9,740  40.12  % 6,951  10,380  9,740  (6.17) % 40.12  %
Acceptances, Guarantees and Standby Letters of Credit 27,390  28,976  5.79  % 27,390  27,761  28,976  4.38  % 5.79  %
Trust 136,267  156,208  14.63  % 136,267  153,961  156,208  1.46  % 14.63  %
Placement of securities and investment banking 11,094  5,050  (54.48) % 11,094  13,055  5,050  (61.32) % (54.48) %
Bancassurance 208,312  226,643  8.80  % 208,312  318,647  226,643  (28.87) % 8.80  %
Payments and Collections 239,817  263,664  9.94  % 239,817  264,837  263,664  (0.44) % 9.94  %
Others 88,205  107,731  22.14  % 88,205  110,968  107,731  (2.92) % 22.14  %
Total fees and commission income 1,751,892  1,921,235  9.67  % 1,751,892  2,086,121  1,921,235  (7.90) % 9.67  %
Fees and commission expenses
Banking services (381,849) (466,832) 22.26  % (381,849) (509,707) (466,832) (8.41) % 22.26  %
Sales, collections and other services -207491 -223097 7.52  % -207491 -247475 -223097 (9.85) % 7.52  %
Bank correspondents (108,081) (148,996) 37.86  % (108,081) (170,988) (148,996) (12.86) % 37.86  %
Others (41,405) (64,542) 55.88  % (41,405) (74,095) (64,542) (12.89) % 55.88  %
Fees and commission expenses (738,826) (903,467) 22.28  % (738,826) (1,002,265) (903,467) (9.86) % 22.28  %
Total fees and comissions, net 1,013,066  1,017,768  0.46  % 1,013,066  1,083,856  1,017,768  (6.10) % 0.46  %
Other operating income
Derivatives FX contracts (98,669) (11,917) (87.92) % (98,669) 10,485  (11,917) (213.66) % (87.92) %
Net foreign exchange 118,183  213,211  80.41  % 118,183  50,764  213,211  320.00  % 80.41  %
Hedging (623) (3,233) 418.94  % (623) (81) (3,233) 3891.36  % 418.94  %
Leases 460,096  448,497  (2.52) % 460,096  476,933  448,497  (5.96) % (2.52) %
Gains (or losses) on sale of assets 17,905  49,760  177.91  % 17,905  41,841  49,760  18.93  % 177.91  %
Other reversals 13,730  11,725  (14.60) % 13,730  14,542  11,725  (19.37) % (14.60) %
Others 118,707  138,424  16.61  % 118,707  314,775  138,424  (56.02) % 16.61  %
Total other operating income 629,329  846,467  34.50  % 629,329  909,259  846,467  (6.91) % 34.50  %
Dividends received, and share of profits of equity method investees
Dividends 10,000  4,967  (50.33) % 10,000  71,839  4,967  (93.09) % (50.33) %
Equity investments (2,482) 19,848  (899.68) % (2,482) 47,902  19,848  (58.57) % (899.68) %
Equity method 77,289  112,510  45.57  % 77,289  34,662  112,510  224.59  % 45.57  %
Others —  % (1,063) (100.00) % —  %
Total dividends received, and share of profits of equity method investees 84,807  137,325  61.93  % 84,807  153,340  137,325  (10.44) % 61.93  %
Total operating income, net 5,570,537  5,966,011  7.10  % 5,570,537  6,239,511  5,966,011  (4.38) % 7.10  %
Operating expenses
Salaries and employee benefits (1,181,578) (1,280,879) 8.40  % (1,181,578) (1,198,269) (1,280,879) 6.89  % 8.40  %
Bonuses (153,373) (249,645) 62.77  % (153,373) (334,898) (249,645) (25.46) % 62.77  %
Other administrative and general expenses (1,204,539) (1,349,077) 12.00  % (1,204,539) (1,632,105) (1,349,077) (17.34) % 12.00  %
Taxes other than income tax (390,894) (356,466) (8.81) % (390,894) (317,392) (356,466) 12.31  % (8.81) %
Impairment, depreciation and amortization (260,262) (266,257) 2.30  % (260,262) (313,575) (266,257) (15.09) % 2.30  %
Total operating expenses (3,190,646) (3,502,324) 9.77  % (3,190,646) (3,796,239) (3,502,324) (7.74) % 9.77  %
Profit before tax 2,379,891  2,463,687  3.52  % 2,379,891  2,443,272  2,463,687  0.84  % 3.52  %
Income tax (694,880) (698,912) 0.58  % (694,880) (743,941) (698,912) (6.05) % 0.58  %
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Net income 1,685,011  1,764,775  4.73  % 1,685,011  1,699,331  1,764,775  3.85  % 4.73  %
Non-controlling interest (21,539) (27,111) 25.87  % (21,539) (36,027) (27,111) (24.75) % 25.87  %
Net income attributable to equity holders of the Parent Company 1,663,472  1,737,664  4.46  % 1,663,472  1,663,304  1,737,664  4.47  % 4.46  %
Stand Alone Balance Sheet Bancolombia S.A.
Financial analysis performed with information prepared under full International Financial Reporting Standards, for the purpose of the Consolidated Financial Statements.

Bancolombia S.A. loan portfolio grew by 2.4% in 1Q25 compared to the previous quarter and 6.6% over the last 12 months. The most significant growth was in the commercial loan portfolio, especially in the corporate segment. The mortgage loan portfolio increased by 4.7% thanks to the interest rate reduction strategy. However, the consumer loan portfolio decreased due to a decline in personal loan and credit cards, as the pace of origination was offset with maturities given its short-term nature, alongside our reinforced origination standards for consumer lending. The funding structure showed a lower balance due to a reduction in savings and checking accounts, partially offset by an increase in time deposits driven by online time deposits from retail clients.
Stand Alone Income Statement Bancolombia S.A.
Financial analysis performed with information prepared under full International Financial Reporting Standards, for the purpose of the Consolidated Financial Statements.

Bancolombia S.A. net income for 1Q25 was COP 1.8 trillion, an increase of 10.3% compared to 4Q24. Interest income decreased due to treasury operations but was offset by higher loan portfolio income. Interest expenses decreased due to lower rates on time deposits. Provision expenses increased as there were no releases in the consumer segment as in the fourth quarter of 2024. Operating expenses decreased due to seasonality, although labor costs rose due to salary increases. The net interest margin for the quarter was 7.3%, and the quarterly annualized ROE was 16.2%.
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.
The guidelines, policies and methodologies for market risks management are maintained in accordance with what was revealed as of December 31, 2024.
BANCOLOMBIA GROUP

The total market risk VaR had a reduction of 4.3%, decreasing from COP 1,697,566 millions in December 2024 to COP 1,624,488 millions in March 2025. This behavior is mainly explained by a lower exposure to the US
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dollar in Bancolombia's book. This effect was offset by an increase in risk concentrated in stock price factors and collective investment funds due to the increase in the position in stocks in Valores Bancolombia and valuations of the Colombia Inmobiliario Fund.

Market risk exposure has been maintained within the approved levels, it is permanently monitored by Senior Management, and is a tool for decision-making that allows preserving the stability of the Group.
BANCOLOMBIA S.A

Market risk management at Bancolombia is the same as previously detailed, carried out for Bancolombia Group.

The total exposure recorded an increase of 1.2%, rising from COP 1,483,039 millions in December 2024 to COP 1,501,452 millions in March 2025. Increase explained by the exposure to different market risk factors. The risk factor leading the increase is collective investment funds due to valuations of the Colombia Inmobiliario Fund, followed by the interest rate factor which recorded higher exposure in debt securities. Meanwhile, the stock price factor registered a decrease due to devaluations in investments. During the period there have been no violations of the approved exposure limits and the market risk exposure is permanently monitored by Senior Management.
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 Bank’s earnings because of timing differences on the repricing of the assets and liabilities. The Bank 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 on 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 guidelines, policies and methodologies for Interest Risk management are maintained in accordance with what was revealed as of December 31, 2024.
BANCOLOMBIA GROUP
As of March 31, 2025, the net sensitivity of the banking book in legal currency to positive and parallel variations in interest rates of 100 basis points was COP 374,743 millions. The variation in the sensitivity of the net interest margin between December 2024 and March 2025 is presented by the increase in loans, compensated by the increment in time deposit and account hedges.
On the other hand, the sensitivity to the net interest margin in foreign currency was – USD 5 millions, assuming the same parallel displacement of 100 basis points and presented an increase between December 31, 2024 and March 31, 2025, due to the increase in Banistmo’s Loans.
BANCOLOMBIA S.A.

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The Net Interest Income (NII) Sensitivity for march is COP 1.2 trillions under a parallel decrease scenario in the market rates. The variation in the sensitivity of the net interest margin between December 2024 and March 2025 is due to the increase in the floating loans.

In the other hand, Delta Economic Value Of Equity (EVE) is COP 2.4 trillions for a scenario with a parallel upward behavior of changes in market rates, showing an increase compared to December 2024 considering the increment in the commercial and mortgage loans, adding to a reduction in the balance of deposit accounts.

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 the corresponding dates due to insufficient liquid resources and/or the need to assume excessive funding costs. Situations such as downgrades in the credit ratings of the Bank and its subsidiaries would increase the cost of funds and hinder its ability to attract deposits or roll over maturing debt.

Liquidity risk management principles and guidelines are maintained as disclosed as of December 31, 2024.
BANCOLOMBIA GROUP

During the first quarter, Bancolombia Group maintained sufficient liquidity levels, which contributed to meeting both internal and regulatory indicators. Similarly, the alerts established for liquidity monitoring and control did not show any breaches that could materialize into risks. Additionally, liquid assets complied with the established limits and comfortably covered the liquidity requirements of the Group's companies.

In this way, the coverage indicator decreased from 249.58% in December 2024 to 247.07% in March 2025, mainly explained by the reduction in the level of liquid assets. By March 2025, the Bank's liquid assets amounted to COP 53.4 trillion.

BANCOLOMBIA S.A.

During the first quarter of the year, liquidity levels have shown a downward trend as a result of the outflows in deposit accounts and the dynamism in loans disbursements, partially offset by deposits in CDTs. However, the level of Liquid Assets has remained above the established limits.

The liquidity indicator was located at 145.40% at the end of March 2025, presenting a reduction compared to the end of December 2024, explained by the decrease in the level of liquid assets given the outflows in deposit accounts and loans disbursements, added to the increase in the 30-day liquidity requirement.

On the other hand, the net stable funding ratio (CFEN) has remained at adequate levels, standing at 118.07%. So far this year, there has been a reduction of 413 basic points considering the reduction in the Available Stable Funding due to the decrease in technical equity and in the deposit accounts under the wholesale and retail segments.

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CREDIT RISK

Credit risk is the risk of an economic loss to the Bank 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 is the single largest risk for the Bank's business.

The first quarter of 2025, moderate economic growth was observed in Colombia and Central America. The positive dynamics in sectors such as manufacturing, construction, and commerce were driven by slowing inflation and greater stability in interest rates. However, the uncertainty caused by volatility in global markets, a consequence of the trade and tariff policies of the United States, affected consumption and investment decisions, impacting economic dynamics.

About that, the Bank has maintained the monitoring and follow-up of customers and portfolios, the evaluation of the conditions and specific requirements of each one, as well as the development of methods, tools and models to optimize collection. Monitoring and reviewing the credit portfolio continues to be a key factor in identifying and applying proactive strategies at different stages of the credit cycle.

BANCOLOMBIA GROUP

The Bank´s loan portfolio as of March 2025, compared to December 2024, showed a slight decrease of 0.3% in the consolidated portfolio balance in pesos. This was mainly explained by the revaluation of the peso against the dollar, which impacts on the portfolio's value expressed in that currency, and a lower disbursement value by the Group, particularly in the commercial portfolio, corporate segment.

The 30-day past due loan ratio (consolidated) for the Bank at stood at 5.05% as of March 2025, showing a decrease compared to 5.20% in December 2024. The level of the bank´s non-performing loans is mainly impacted by the improvement in the quality of the retail loan portfolio, particularly in consumer products, along with a decrease in the indicator for the commercial portfolio in the Corporate and SME segments. The management of all portfolios continues across the different stages of the credit cycle to anticipate the materialization of risks, designing containment and recovery strategies for the loan portfolio. We continue to manage all portfolios at different stages of the credit cycle to anticipate the materialization of risks, designing origination, containment, and portfolio recovery strategies

The credit cost for the Bank in the first quarter of 2025 was 1.6%, higher than the 2.0% registered in December 2024, The increase in this indicator is due to the effect of the release of consumer overlays in the previous quarter, a situation that does not occur this quarter.

BANCOLOMBIA S.A.

At the end of the first quarter of the 2025, Bancolombia presents an increase in its portfolio of 2.4% compared to the previous year's closing, mainly due to an increase in the balance of the corporate and business segments. The variation in the portfolio capital for the commercial and leasing modality was 2.7%, Consumer -0.9%, Mortgage 4.7% and finally Small Business Loans of 16.3%. Its 30-day past due loan ratio was 4.62%, which represented an increase of 0.23 pp, compared to 4.85% as of December 2024.

The credit cost for Bancolombia in the first quarter of 2025 was 1.8%, lower than the 2.0% registered in December 2024. The above is mainly explained by the release of provisions presented in the last quarter of the previous year associated with the annual calibration of parameters. Likewise, they continue to operate different
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strategies were developed for the follow-up and recovery of the portfolio in order to normalize and contain the portfolio mainly in the consumer modality.
COUNTRY RISK

This risk refers to the possibility of the Bank incurring losses as a result of 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.

The guidelines, policies and methodologies for country risks management are maintained in accordance with what was revealed as of December 31, 2024.

At the end of March 2025, there were no alerts on any investments, nor were any adjustments made for deterioration in investments that could affect or deteriorate the Bank's financial strength. The decrease in the balance of investments is due to revaluation and other concepts related to the final value of the investment.
OPERATIONAL RISK
BANCOLOMBIA GROUP

The Bank has an operational risk management system, whose objective is to carry out adequate risk management that allows, as far as possible, to minimize, avoid or reduce the materialization of adverse events and/or reduce their consequences or costs in the event of materialization. The operational risk management system has not presented changes in relation to what was revealed at the 2024 in terms of regulations, policies, manuals, methodologies, structure or any other relevant element that may affect its effectiveness.

During the first quarter of the current year, no new risks or changes in existing risks have been identified that significantly modify the exposure to operational risk. The losses materialized in the quarter present an increase of a decrease of 3% compared to the last quarter of 2024, this variation is mainly explained by the fraud category.

BANCOLOMBIA S.A.

Bancolombia's operational risk system's objective is to carry out an adequate risk management that allows minimizing, avoiding, or reducing the materialization of adverse events and/or reducing their consequences or costs in case of materialization. The operational risk management system has not presented changes in relation to what was revealed at the end of December 2024 in terms of regulations, policies, manuals, methodologies, structure or any other relevant element that may affect its effectiveness.

During the first quarter of the current year, no new risks or changes in existing risks have been identified that significantly modify the Bancolombia's operational risk exposure. The losses materialized in the first quarter of 2025 reaches out to COP 90,034 million, representing a 20% increase compared to the last quarter of 2024 explained by the fraud category due to fraud enlistment in second factor of authentication (dynamic key) in the migration strategy to the new APP Mi Bancolombia, and capture of customer data through social engineering techniques. To contain this tendency, we did adjustments in monitoring models and password blocking, security campaigns and accelerated the migration process.
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OTHER RELEVANT RISK

At the Bank, we continue to work on adjusting our policies and processes with the aim of adequately managing risks in a dynamic and proactive manner. Where the concerns of the business areas, such as corporate areas and senior management, are taken into account. Each of the risks identified is measured consistently using methodologies that are considered relevant in each case.

To this end, we have the risk map as a tool that allows The Bank to identify the most relevant risks to which it is exposed and define action plans aimed at mitigating them, taking into account a holistic vision between the local and international context.

On the other hand, for the update of Bancolombia's 2025 risk map, the same risks identified in 2024 are preserved, based on the analysis of megatrends and trends for the medium term. Additionally, factors such as AI adoption, interoperability, geopolitical impacts, inflation, extreme weather, among others, were taken into account. After this, the MICMAC methodology is applied in order to adjust the risks within the matrix of influences and dependencies and in this way, to facilitate the prioritization of the management of the risks that have the greatest influence within the system.

Below is Bancolombia's risk map for 2025, which details the relevant changes that occurred in the first quarter of the year, however, environmental and social risk, human talent, third parties and sustainability did not present relevant changes.

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Risk map 2025 – Bancolombia


•Regulatory and legal risk

During the first quarter of 2025, there were no major developments in regulatory initiatives, as the country has been focused on: i) the discussion of the labor reform as one of the structural initiatives presented by the
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government to Congress; and ii) the declaration of a state of internal commotion in Catatumbo, which required efforts from the government to address the emergency through this mechanism. Among the measures adopted in this context was a tax provision affecting all sectors of the economy, with potential impact on both financial activity and the sectors financed by the financial industry. Specifically, Decree 175 establishes the mechanisms through which other measures will be financed by introducing three taxes applicable for the 2025 fiscal year: i) a 1% stamp tax (vs. 0% from 2010–2025); ii) a 19% VAT on online games of chance (vs. 0% previously); and iii) a variable-rate tax on the export and commercialization of hydrocarbons.

This quarter, although progress has been made in the regulation of pension reform, much of it relies on transitional provisions that would enable the management of these resources while the final regulation is issued (a task assigned to the Ministry of Finance and Public Credit and the Central Bank).

Additionally, CONPES 4144 was issued, marking one of the first steps toward regulating Artificial Intelligence in the country.

•Economic and sector environment

The beginning of Donald Trump's administration in the United States and the tariff measures adopted have emerged as the main determinant of the international macro-financial situation in the first part of 2025. The imposition of universal, sectoral, and China-specific tariffs led to the estimated average tariff rate for U.S. imports reaching its highest level in nearly a century. These decisions have skewed expectations for GDP growth and inflation in the United States, where the outlook is tilted towards a dynamic of very low growth or possible recession with a significant increase in prices perceived by households.

This introduces a dilemma for the Federal Reserve's monetary policy decision-making, which has emphasized the need for more information and a preference for caution amid this environment of high uncertainty. Meanwhile, markets have reacted strongly: the sentiment of risk aversion deepened, prompting a flight-to-quality1 in the decisions of international investors. Financial assets of emerging economies have been affected.

For Colombia, this global environment would have mainly financial implications: the exchange rate weakened after a relatively favorable start to the year, while oil prices have been below USD 70 per barrel in recent weeks. Additionally, global risk aversion generated a widespread increase in sovereign risk premiums among emerging economies, something that affected Colombia more significantly due to prevailing vulnerabilities in the fiscal outlook.

The local economy continues the path of GDP growth recovery and inflation reduction that had already been observed since the latter part of 2023 and throughout 2024. Meanwhile, the imposition of the universal 10% tariff on Colombian products has limited implications for the export sector: much of the tariff was offset by the depreciation of the exchange rate, while the relative situation with other countries did not change significantly -it improved against China, to whom the United States imposed a much higher tariff, and only weakened against goods that are part of the trade agreement between Mexico, Canada, and the U.S.-.

Thus, it is foreseeable that the Colombian economy will continue to advance on the path of progressive macro stabilization (in GDP growth, inflation, and interest rates), implying a short-term environment that will be more constructive than seen in 2023 and 2024. The 10% tariff on Colombian goods may pose moderate risks to some specific productive activities, while financial turbulence has emerged as the main source of macro uncertainty for the short-term future.

1 Flight-to-quality: Dynamic in which international investors transfer their resources from assets considered risky (for example, stocks or assets from emerging countries) to destinations considered safer (for example, government bonds of more developed economies or gold). This usually occurs in environments of high economic uncertainty and financial market volatility.

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Grupo Bancolombia maintains an active management of credit risk, incorporating various macroeconomic scenarios into the provision calculation models. In addition, Grupo Bancolombia has maintained constant sector analysis and monitoring, aiming at identifying both situations and customers with possible affectations. Periodically, the evolution of the individual situation of customers is reviewed in different forums, adopting alternatives, when necessary, to support them in the development of their businesses and in the management of the context.



•Political Risk

The administrative and legal difficulties the national government has faced in recent months have led to adjustments in its policy strategies. Indeed, given the complex fiscal situation and the lack of willingness to reduce spending, the Government has stated that it will introduce a new financing law in 2025 which, among other provisions, will seek to make permanent the taxes enacted under the decrees of the state of internal commotion (stamp tax; VAT on online games of chance; and the tax on hydrocarbon exports). Complementing this initiative, a draft proposal has also been introduced to increase withholding tax at the source, a measure widely criticized by analysts, who argue that while it may ease the government’s cash flow in 2025, it would pose greater challenges in 2026 when those resources would no longer be available. Additionally, the President of the Republic has mentioned the intention to use funds from 4G–5G infrastructure trusts to finance a yellow fever vaccination plan; however, this initiative does not appear to have legal backing.

In light of the current government's structural reforms and the failure of the labor reform initiative, the government is promoting a popular consultation that, if successful, would lead to the approval of some of the contents of the legislative project. However, moving forward with this consultation would not only involve various political challenges (such as Senate approval) and budgetary issues (with a cost of nearly COP $700,000 million). Meanwhile, the Liberal Party has presented a substitute labor reform proposal that will be studied in the remaining time of this legislative session (45 days), which will likely be analyzed at record speed (given that the government itself has declared it urgent), and it is expected that this will partially resolve the impasse.

At the international level, decisions made by the new U.S. administration have had global effects, and there remains tension surrounding the implementation of trade measures that could impact the country, the region, and the international context overall. From a macro-financial perspective, an environment of uncertainty is perceived, and global economic conditions are expected to become more challenging due to the potential onset of a trade war, particularly with jurisdictions such as China. Although the “reciprocal tariff measures” announced in early April remain suspended for 90 days, allowing space for direct negotiations between countries and the United States, economic forecasts are already showing signs of a decline in global growth. For Colombia, this international scenario, along with potential future measures such as the country’s possible decertification in the fight against drug trafficking, adds to pre-existing fiscal challenges, becoming another potential source of inflationary pressure. This may hinder the Central Bank's ability to lower interest rates, due to: i) a depreciation of the peso that increases import costs; ii) the behavior of global central banks; and iii) the fiscal impact of falling oil prices.

•Business continuity and technology failures

In terms of operational resilience, business continuity and technological failures, progress continues in the modernization of key services such as the migration to the Mi Bancolombia app, leveraged on the migration to cloud components. Likewise, a robust contingency based on a fourth-generation Core is being implemented, with an emphasis on critical channels and processes. These actions will allow a greater capacity to respond to eventualities, improving resilience and mitigating in a timely manner the impacts on the service to our customers.


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•Model Risk

During the first quarter of 2025, we continued progressing in our commitment to operational excellence through the development and deployment of artificial intelligence-based tools, aimed at optimizing and automating strategic processes in analytical model validation. These efforts have enabled us to enhance technical efficiency, increase standardization, and strengthen the traceability of our procedures, simultaneously improving our analytical capabilities. Additionally, we updated the Corporate Model Risk Policy, making it clearer, more agile, and aligned with international standards, reinforcing our integrated risk management and elevating the maturity level of The Bank model governance.

•Cybersecurity and information security risk

During the first quarter of 2025, no significant changes have occurred that would materially alter the exposure to risk in Cyber and Information Security. However, to strengthen the management of this risk, controls have been consolidated and improved with a focus on access management, alerts, and monitoring across the different control layers. Notably, progress has been made in the standardized consolidation of various antimalware technologies and their integration, as well as in enhancing information labeling controls as a preventive measure to keep risk exposure under control. Additionally, the construction, release, and approval of the technological and cyber risk management policy is highlighted, which will provide a more structured framework for risk governance and action.

•Inadequate response to market changes risk

During the first quarter of the year, the Colombian financial sector showed resilience despite global geopolitical volatility. Bancolombia stood out with growth in its loan portfolio, although at a more moderate pace due to global and local uncertainty. Traditional and emerging players deployed interoperability strategies, with the Alliance led by Redeban achieving more than 30 million transactions and 10 million users in two months. Colombia remains an attractive market for new emerging players, with a high adoption rate of neobanks and a regulatory framework that promotes competitiveness, however, new players face challenges in finding profitable business models in a context of transactional gratuity and restricted credit margins, favoring historical players.

•Internal fraud risk

Internal fraud, particularly focused on the misappropriation of assets, is the possibility of economic losses due to acts carried out by employees, employees of suppliers and/or allies of the The Bank, where there is an intention to obtain an illegal benefit or advantage, personal or for third parties, through deception and to the detriment of the interests of Grupo Bancolombia; the appropriation, embezzlement, or misuse of resources includes the concealment of assets, misuse of confidential information or intellectual property, unauthorized access or copies of digital assets, unauthorized expenses, or misuse of the internet. For the first quarter of 2025, the following actions stand out:
◦Training and awareness activities with commercial teams through different strategies that seek to strengthen the zero-tolerance culture in The Bank.
◦Improvements to the monitoring of different products that may represent a higher risk for the materialization of internal fraud, as well as the accompaniment and diagnosis of models with a risk-based approach.
◦Adjustments to processes where opportunities for improvement were identified.




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•External fraud risk

Identifying and mitigating fraud risks are strategic priorities for Bancolombia. Regarding external fraud, social engineering techniques continue to pose a significant challenge to the financial system. To address this issue, we have strengthened analytics-based controls, enhanced transaction monitoring and supporting decision-making in fraud matters, thereby protecting our clients and users in all their interactions.

We have acquired new capabilities that allow us to understand clients' behavioral and transactional patterns, as well as their usage and preferences, to make more informed decisions. Among the implemented actions, real-time self-management for confirming suspicious transactions and unlocking OTP (One Time Passwords) through Tabot-WhatsApp stands out. These alternative channels and automated processes help improve customer experience with more agile, immediate, and digital responses.

Additionally, we have developed a cultural strategy on the safe use of products and channels, highlighting the importance of financial education as a barrier against all types of threats.

We implemented the fraud policy with the aim of developing guidelines and principles for products and channels in Bancolombia's fraud management area. Also, the way in which the operational risk area measures, manages and monitors the risk of external fraud was established.

•AML and corruption Risk

During the development of SARLAFT in the first quarter of 2025, the AML risk matrices for Bancolombia, Valores Bancolombia, Fiduciaria Bancolombia, and Bancolombia Investment Banking were successfully executed, ensuring optimal results for each entity through constant evolution in risk mitigation.

We continue to evolve our technological infrastructure through the migration of the current GRC (corporate tool for managing AML risks and other non-financial risks), which is being developed by the Bancolombia SA technology area. This migration implies, among other benefits, greater information security, access control, and increased traceability of changes made.

To keep informed about our external context, in collaboration with the Financial Superintendence of Colombia and other sector entities, an exhaustive analysis of the internal and external environment was carried out. This analysis aimed to understand new modalities of source crimes, with special emphasis on crimes against public administration and extortion, in Bancolombia context.

We continue to work on strengthening the culture of prevention among our employees and suppliers through the dissemination of various communications, training, and workshops, which directly impact knowledge on AML prevention within the organization.

Additionally, 64 initiatives and projects were accompanied, with the objective of proactively identifying AML risks enabling the implementation of controls and management for their proper mitigation.

IV.MATERIAL CHANGES IN THE INFORMATION REPORTED IN THE CORPORATE GOVERNANCE ANALYSIS CHAPTER OF THE ANNUAL REPORT
In the first quarter of the year 2025, there were no material changes to the information reported in the Corporate Governance analysis chapter of the last periodic year-end report.
V.MATERIAL

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MATERIAL CHANGES THAT HAVE OCCURRED IN PRACTICES, PROCESSES, POLICIES AND INDICATORS IN RELATION TO SOCIAL AND ENVIRONMENTAL CRITERIA, INCLUDING CLIMATE CRITERIA.
After more than 12 years of existence with a mission to contribute to the country’s financial inclusion, Bancolombia A la Mano joins forces with Nequi. This is the result of a strategic decision by the organization to merge two of the most recognized solutions in its portfolio, aiming to further strengthen its impact on financial inclusion in the country. Through this initiative, Bancolombia A la Mano customers are given the option to become Nequi customers.

This development may impact the following indicators from the SASB Commercial Banking guide, which are reported in our Annual Management Report, under the chapter Report on Social and Environmental matters, including Climate-related issues:

•(1) Number and (2) amount of outstanding loans qualified for programs designed to promote small businesses and community development [FN-CB-240a.1]
•(1) Number and (2) amount of non-performing and past-due loans qualified for programs designed to promote small businesses and community development[FN-CB-240a.2]
•Number of no-cost retail checking accounts provided to previously unbanked or underbanked customers [FN-CB-240a.3]
VI.MATERIAL CHANGES PRESENTED IN THE FINANCIAL STATEMENTS OF THE ISSUER BETWEEN THE REPORTED QUARTER AND THE DATE OF TRANSMISSION OF THE INFORMATION
On April 23, 2025, at an Extraordinary General Shareholders' Meeting of Bancolombia were approved by the required majority, the corporate structure changes of Bancolombia and its subsidiaries. These changes included the creation of a parent company called Grupo Cibest S.A. and the completion of a series of corporate transactions to achieve this goal as announced to the market on October 29, 2024. See Note 1. Reporting Entity.

In addition, the General Shareholders' Meeting of Bancolombia approved the amendment to the Corporate Bylaws and the adjustment of the value of Bancolombia's authorized capital in accordance with the increase in the par value of the share, in order to adapt to the new Corporate Structure. Likewise, the payment of an extraordinary dividend totaling COP 600,180 was approved, equivalent to COP 624 per share, payable in one installment on April 29, 2025.

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: Bancolombia S.A.
“Bancolombia Group“ or “the Bank”: refers to Bancolombia S.A., a banking institution organized under the laws of the Republic of Colombia, including its subsidiaries on a consolidated basis, unless otherwise indicated or the context otherwise requires.
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IDB: Inter-American Development Bank
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.
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.
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 STATEMENTS
ii.SEPARATED INTERIM FINANCIAL STATEMENTS
Contacts
Julian Mora Gomez Mauricio Botero Wolff Catalina Tobon Rivera
Corporate VP Financial VP IR Director
Tel.: (57 601) 4042436 Tel.: (57 604) 4040858 Tel: (57 601) 4485950
IR@bancolombia.com.co
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CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the three-months period ended March 31, 2025 and 2024.

Table of Contents
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
BANCOLOMBIA S.A. AND ITS SUBSIDIARIES
As of March 31, 2025 and December 31, 2024
(Stated in millions of Colombian pesos)
Note March 31, 2025 December 31, 2024
ASSETS
Cash and cash equivalents 4 28,275,294 32,844,099
   Financial assets investments 5.1 36,394,058 37,570,270
   Derivative financial instruments 2,529,449 2,938,142
Financial assets investments and derivative financial instruments 38,923,507 40,508,412
   Loans and advances to customers 278,523,005 279,453,908
   Allowance for loans, advances and lease losses (15,532,803) (16,179,738)
Loans and advances to customers, net 6 262,990,202 263,274,170
Assets held for sale and inventories, net 816,077 1,106,399
Investment in associates and joint ventures 2,962,639 2,928,984
Investment properties 5,608,037 5,580,109
Premises and equipment, net 5,708,321 5,906,064
Right-of-use assets, lease 1,725,559 1,757,206
Goodwill and intangible assets, net 9,301,046 9,767,903
Deferred tax, net 7 692,119 763,757
Other assets, net 7,122,510 7,778,279
TOTAL ASSETS 364,125,311 372,215,382
LIABILITIES AND EQUITY
LIABILITIES
Deposits by customers 8 276,030,117 279,059,401
Interbank deposits and repurchase agreements and other similar secured borrowing 9 1,900,142 1,776,965
Derivative financial instruments 2,516,148 2,679,643
Borrowings from other financial institutions 10 11,899,337 15,689,532
Debt instruments in issue 10,878,328 11,275,216
Lease liabilities 1,857,875 1,889,364
Preferred shares 541,340 584,204
Current tax 755,481 156,162
Deferred tax, net 7 2,734,413 2,578,504
Employee benefit plans 941,706 951,555
Other liabilities 12 12,381,389 10,990,561
TOTAL LIABILITIES 322,436,276 327,631,107
EQUITY
Share capital 480,914 480,914
Additional paid-in-capital 4,857,454 4,857,454
Appropriated reserves 13 24,302,796 22,575,837
Retained earnings 3,561,654 2,715,313
Net income attributable to equity holders of the Parent Company 1,737,664 6,267,744
Accumulated other comprehensive income, net of tax 5,693,944 6,645,206
SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO THE OWNERS OF THE PARENT COMPANY 40,634,426 43,542,468
Non-controlling interest 1,054,609 1,041,807
TOTAL EQUITY 41,689,035 44,584,275
TOTAL LIABILITIES AND EQUITY 364,125,311 372,215,382
The accompanying notes form an integral part of these Condensed Consolidated Interim Financial Statements.

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CONDENSED CONSOLIDATED INTERIM STATEMENT OF INCOME
BANCOLOMBIA S.A. AND ITS SUBSIDIARIES
For the three-months period ended March 31, 2025 and 2024
(Stated in millions of Colombian pesos, except earning per share stated in units of pesos)
Note 2025 2024
Interest on loans and financial leases
  Commercial 3,828,165 4,198,007
  Consumer 1,977,301 2,152,163
  Mortgage 1,096,470 1,013,052
  Financial leases 800,230 954,825
  Small business loans 61,442 53,704
Total interest income on loans and financial leases 7,763,608 8,371,751
Interest on debt instruments using the effective interest method 15.1 233,730 257,774
Total Interest on financial instruments using the effective interest method 7,997,338 8,629,525
Interest income on overnight and market funds 50,969 61,823
Interest and valuation on financial instruments 15.1 365,152 406,046
Total interest and valuation on financial instruments 8,413,459 9,097,394
Interest expenses 15.2 (3,349,459) (3,939,079)
Net interest margin and valuation on financial instruments before impairment on loans and financial leases, off balance sheet credit instruments and other financial instruments 5,064,000 5,158,315
Credit impairment charges on loans, advances and financial leases, net 6 (1,103,524) (1,334,863)
Credit recovery for other financial instruments, net 3,975 19,883
Total credit impairment charges, net (1,099,549) (1,314,980)
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 3,964,451 3,843,335
Commissions income 15.3 1,921,235 1,751,892
Commissions expenses 15.3 (903,467) (738,826)
Total commissions, net 1,017,768 1,013,066
Other operating income 15.4 846,467 629,329
Dividends and net income on equity investments 15.5 137,325 84,807
Total operating income, net 5,966,011 5,570,537
Operating expenses
Salaries and employee benefits 16.1 (1,530,524) (1,334,951)
Other administrative and general expenses 16.2 (1,349,077) (1,204,539)
Taxes other than income tax 16.2 (356,466) (390,894)
Impairment, depreciation and amortization 16.3 (266,257) (260,262)
Total operating expenses (3,502,324) (3,190,646)
Profit before income tax 2,463,687 2,379,891
Income tax 7 (698,912) (694,880)
Net income 1,764,775 1,685,011
Net income attributable to equity holders of the Parent Company 1,737,664 1,663,472
Non-controlling interest 27,111 21,539
Basic and Diluted earnings per share to common shareholders, stated in units of Colombian pesos 17 1,822 1,745
The accompanying notes form an integral part of these Condensed Consolidated Interim Financial Statements.

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CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
BANCOLOMBIA S.A. AND ITS SUBSIDIARIES
For the three-months period ended March 31, 2025 and 2024
(Stated in millions of Colombian pesos)
Accumulated
Note 2025 2024
Net income 1,764,775 1,685,011
Other comprehensive income that will not be reclassified to net income
Remeasurement related to defined benefit liability — —
Income tax 7.3 27 7
Net of tax amount 27 7
Investments in equity instruments measured at fair value through other comprehensive income (FVTOCI)
Unrealized gain 3,978 6,460
Income tax 7.3 400 (541)
Net of tax amount 4,378 5,919
Total other comprehensive income that will not be reclassified to net income, net of tax 4,405 5,926
Other comprehensive income that may be reclassified to net income
Investments in debt instruments measured at fair value through other comprehensive income (FVTOCI)
(Loss)/gain on investments recycled to profit or loss upon disposal — (5,808)
Unrealized (loss) (4,043) 716
Recovery of investments (2,140) (1,128)
Income tax 7.3 3,515 2,192
Net of tax amount (2,668) (4,028)
Foreign currency translation adjustments:
Exchange differences arising on translating the foreign operations (1,073,893) 97,043
Gain/(Loss) on net investment hedge in foreign operations 192,264 (38,075)
Income tax 7.3 (71,154) 16,784
Net of tax amount(1)
 (952,783) 75,752
Cash flow hedges
Net gains from cash flow hedges (369) —
Reclassification to the Statement of Income 307 —
Income tax 7.3 25 —
Net of tax amount (37) —
Unrealized (loss) on investments in associates and joint ventures using equity method (250) (6,347)
Income tax 7.3 71 908
Net of tax amount (179) (5,439)
Total other comprehensive income that may be reclassified to net income, net of tax (955,667) 66,285
Other comprehensive income, attributable to the owners of the Parent Company, net of tax (951,262) 72,211
Other comprehensive income, attributable to the Non-controlling interest 971 547
Total comprehensive income attributable to: 814,484 1,757,769
Equity holders of the Parent Company 786,402 1,735,683
Non-controlling interest 28,082 22,086
(1)As of March 31, 2025 there was a devaluation of the Colombian peso against the U.S. dollar by 9.10%, compared to the first quarter of the previous year.
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
BANCOLOMBIA S.A. AND ITS SUBSIDIARIES
For the three-months period ended March 31, 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
Capital		 Additional
Paid in
capital		 Appropiated
Reserves
(Note 13)		 Translation
adjustment		  Cash flow hedging Equity
Securities
through OCI		 Debt
instruments
at fair value
through OCI		 Revaluation
of assets		 Associates Employee
Benefits		 Retained
earnings		 Net
Income		 Attributable
to owners
of Parent
Company		 Non-
Controlling
interest		 Total
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. -  -  -  -  -  -  -  -  -  -  (3,693,424) -  (3,693,424) -  (3,693,424)
Constitute reserves -  -  1,726,959  -  -  -  -  -  -  -  (1,725,344) -  1,615  -  1,615 
Others -  -  -  -  -  -  -  -  -  -  (2,635) -  (2,635) -  (2,635)
Non-controlling interest -  -  -  -  -  -  -  -  -  -  -  -  -  (15,280) (15,280)
Net Income -  -  -  -  -  -  -  -  -  -  -  1,737,664  1,737,664  27,111  1,764,775 
Other comprehensive income -  -  -  (952,783) (37) 4,378  (2,668) -  (179) 27  -  -  (951,262) 971  (950,291)
Balance as of March 31, 2025 480,914 4,857,454 24,302,796 5,564,673 92 207,935 (46,738) 2,137 4,999 (39,154) 3,561,654 1,737,664 40,634,426 1,054,609 41,689,035
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
BANCOLOMBIA S.A. AND ITS SUBSIDIARIES
For the three-months period ended March 31, 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
Capital		 Additional
Paid in
capital		 Appropiated
Reserves		 Translation
adjustment		 Equity
Securities
through OCI		 Debt
instruments
at fair value
through OCI		 Revaluation
of assets		 Associates Employee
Benefits		 Retained
earnings		 Net
Income		 Attributable
to owners
of Parent
Company		 Non-
Controlling
interest		 Total
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)
Constitute reserves -  -  2,613,096  -  -  -  -  -  -  (2,612,966) -  130  -  130 
Realization of retained earnings(1)
 -  -  -  -  (1,158) -  -  -  -  1,158  -  -  -  - 
Others -  -  -  -  -  -  -  -  -  3,535  -  3,535  -  3,535 
Non-controlling interest -  -  -  -  -  -  -  -  -  -  -  -  (17,280) (17,280)
Net Income -  -  -  -  -  -  -  -  -  -  1,663,472  1,663,472  21,539  1,685,011 
Other comprehensive income -  -  -  75,752  5,919  (4,028) -  (5,439) 7  -  -  72,211  547  72,758 
Balance as of March 31, 2024 480,914  4,857,454  22,657,865  4,050,131  198,667  (71,334) 2,137  6,081  (40,468) 2,680,622  1,663,472  36,485,541  965,023  37,450,564 
(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 INTERIM STATEMENT OF CASH FLOW
BANCOLOMBIA S.A. AND ITS SUBSIDIARIES
For the three-months period ended March 31, 2025 and 2024
(Stated in millions of Colombian pesos)

NOTE 2025 2024
Net income 1,764,775  1,685,011 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 15.3 256,600  248,743 
Other assets impairment 15.3 9,657  11,519 
Equity method 14.5 (112,510) (77,289)
Credit impairment charges on loans and advances and financial leases 6 1,103,524  1,334,863 
Credit recovery for other financial instruments, net (3,975) (19,883)
Gain on sales of assets 14.4 (49,760) (17,905)
Valuation gain on investment securities 14.1 - 14.5 (653,443) (553,565)
Valuation loss on derivative financial instruments 57,980  92,978 
Income tax 7 698,912  694,880 
Bonuses and short-term benefits 234,056  153,373 
Dividends 14.4 (4,967) (10,000)
Investment property valuation 14.4 (22,703) (7,819)
Effect of exchange rate changes 232,750  (143,003)
Other non-cash items (22,871) 6,710 
Net interest (4,414,149) (4,432,672)
Change in operating assets and liabilities:
Decrease in derivative financial instruments 187,025  114,857 
Decrease / (Increase) in accounts receivable 543,005  (274,929)
Increase in loans and advances to customers (5,467,342) (7,344,965)
Decrease in other assets 70,481  208,459 
Decrease in accounts payable (626,516) (707,776)
Decrease in other liabilities (739,135) (689,328)
Increase / (Decrease) in deposits by customers 1,935,388  (3,545,453)
Increase / (Decrease) in estimated liabilities and provisions 1,181  (21,591)
Net changes in investment securities recognized at fair value through profit or loss 1,132,008  (2,533,698)
Proceeds from sales of assets held for sale and inventories 479,710  331,384 
Recovery of charged-off loans 6 171,353  169,097 
Income tax paid (524,969) (268,834)
Dividend received 21,570  6,452 
Interest received 7,654,184  8,124,659 
Interest paid (3,478,968) (3,940,913)
Net cash provided / (used) by operating activities 432,851  (11,406,638)
Cash flows (used) / provided from investment activities:
Purchases of debt instruments at amortized cost (358,378) (1,428,246)
Proceeds from maturities of debt instruments at amortized cost 252,753  1,179,456 
Purchases of debt instruments at fair value through OCI —  (1,137)
Proceeds from debt instruments at fair value through OCI 208,004  667,653 
Purchases of equity instruments at fair value through OCI and interests in associates and joint ventures (11,245) (55,693)
Proceeds from equity instruments at fair value through OCI and interests in associates and joint ventures 7,436  3,179 
Purchases of premises and equipment and investment properties (281,306) (248,809)
Proceeds from sales of premises and equipment and investment properties 141,952  110,366 
Purchase of other long-term assets (37,353) (28,380)
Net cash (used) / provided in investing activities (78,137) 198,389 
Cash flows (used) / provided from financing activities:
Decrease in repurchase agreements and other similar secured borrowing 224,065  550,673 
Proceeds from borrowings from other financial institutions
 1,855,729  2,860,166 
Repayment of borrowings from other financial institutions
 (5,109,150) (4,445,065)
Payment of lease liability (47,291) (40,158)
Placement of debt instruments in issue
 270,932  34,724 
Payment of debt instruments in issue
 (332,192) (315,833)
Dividends paid (849,444) (849,322)
Transactions with non-controlling interests (15,280) (17,280)

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NOTE 2025 2024
Net income 1,764,775  1,685,011 
Net cash used in financing activities(1)
 (4,002,631) (2,222,095)
Effect of exchange rate changes on cash and cash equivalents (920,888) 317,182 
Decrease in cash and cash equivalents (3,647,917) (13,430,344)
Cash and cash equivalents at beginning of year 4 32,844,099  39,799,609 
Cash and cash equivalents at end of year 4 28,275,294  26,686,447 
(1)For further information about the reconciliation of the balances of liabilities from financing activities, see Note 21. Liabilities from financing activities.
As of March 31, 2025 and 2024, the Bank entered into non-cash operating and investing activities related to restructured loans and returned properties that were transferred to assets held for sale and inventories amounting to COP 261,234 and COP 445,866 , respectively.
The accompanying notes form an integral part of these Condensed Consolidated Interim Financial Statements.

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NOTE 1. REPORTING ENTITY
Bancolombia S.A., hereinafter the Parent Company, is a credit establishment, listed on the Colombia Stock Exchange (BVC) as well as on the New York Stock Exchange (NYSE), since 1981 and 1995, respectively. The Parent Company's main location is in Medellin (Colombia), main address Carrera 48 # 26-85, Avenida Los Industriales, and was originally constituted under the name Banco Industrial Colombiano (BIC) according to public deed number 388, date January 24, 1945, from the First Notary's Office of Medellin, authorized by the Superintendence of Finance of Colombia (“SFC”). On April 3, 1998, by means of public deed No. 633, BIC merged with Bank of Colombia S.A., and the resulting organization of that merger was named Bancolombia S.A.

The operating license was authorized definitively by the SFC according to Resolution number 3140 on September 24, 1993. The duration of the company was extended until December 8, 2144. The company may be dissolved or extended before said term.

The Parent Company´s bylaws are formalized in the public deed number 2040, dated July 26, 2024, at the 20th Notary´s Office of Medellín.

Bancolombia S.A.’s business purpose is to carry out all operations, transactions, acts and services inherent to the banking business. The Parent Company may, by itself or through its subsidiaries, own interests in other corporations, wherever authorized by law, according to all terms and requirements, limits or conditions established therein.

The Parent Company and its subsidiaries include the following operating segments: Banking Colombia, Banking Panama, Banking El Salvador, Banking Guatemala, Trust, Investment banking, Brokerage, International Banking and Others. The activities carried out by each operating segment of Bancolombia Group are described in Note 3. Operating segments.

The Parent Company, through its subsidiaries, has banking operations and an international presence in United States, Puerto Rico, Panama, Guatemala, and El Salvador.

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 March 31, 2025, the company is in the process of dissolution and liquidation.

Operations in the Cayman Islands through Sinesa Cayman, Inc. (before Bancolombia Cayman) have been canceled or transferred. On November 22, 2023, the Cayman Islands Monetary Authority approved the delivery of the banking license in accordance with Section 20(1)(a) of the Banking and Trust Companies Act (2021 Revision) (the “BTCA”). Therefore, the banking license has been canceled as of that date. As it is no longer a banking entity, on June 20, 2024, the name was changed to Sinesa Cayman, Inc., the company is currently in the process of dissolution and liquidation in the Cayman Islands Companies Registry.

The General Assembly of Shareholders of Transportempo S.A.S approved the liquidation of the company, making the corresponding adjudications and approvals of its final accounts. The above is recorded in Minute No. 98 of July 3, 2024.

On December 14, 2021, The Parent Company´s Board of Directors authorized the legal separation of the Nequi business, the digital platform of Bancolombia Group. The Financial Superintendence of Colombia (Superintendencia Financiera de Colombia) through Resolution 0843 of July 6, 2022, later modified by the Resolution 0955 of July 27, 2022, authorized the establishment of Nequi S.A. Compañía de Financiamiento. The legal separation resulted in the creation and commercial registration of a new corporation through which Nequi will operate as a 100% digital credit establishment. Nequi must obtain an authorization certificate or operating permit, accredited by the Financial Superintendence of Colombia in order to operate. Activities for this process are in progress. In September 2022, the company Nequi S.A. was created with a capitalization of COP 150,000 distributed mainly in Banca de Inversión Bancolombia S.A. Corporación Financiera with a participation percentage of 94.99%, Inversiones CFNS S.A.S. and others minority stockholders of 5.01%.

The Parent Company announced on October 29, 2024 that its Board of Directors authorized management to move forward with the steps necessary to modify the corporate structure of The Parent Company, its affiliates and subsidiaries through the creation of a holding company to be named Grupo Cibest S.A. as well as certain related corporate transactions.

The corporate structure changes were presented for consideration at the shareholder meetings of the entities involved, including at an Extraordinary General Shareholders’ Meeting of the common and preferred shareholders of The Parent Company which was held on April 23, 2025.

The changes in the corporate structure include the following transactions:

(i)The distribution of certain subsidiaries by Bancolombia (Panama) S.A. to Sociedad Beneficiaria BC Panamá S.A.S., a company established by The Parent Company with the sole purpose of being the beneficiary of this distribution and subsequently merged into The Parent Company.
(ii)The merger of Sociedad Beneficiaria BC Panamá S.A.S into The Parent Company.
(iii)The distribution of certain assets and subsidiaries of Banca de Inversión Bancolombia S.A. Corporación Financiera to The Parent Company.
(iv)The distribution of certain assets and subsidiaries of The Parent Company to Grupo Cibest.

Once the corporate structure changes are completed, Grupo Cibest will be the parent company of The Parent Company, its affiliates and subsidiaries.

The shareholders of The Parent Company will become shareholders of Grupo Cibest, maintaining the same number of shares and the same percentage investment and under the same terms and conditions they have in The Parent Company at the time the transaction is finalized, which means the transaction will not involve the change in any rights with respect to the common and preferred shares nor any transfer of value to third parties.

On January 13, 2025, The Parent Company announced the publication of notices of merger by absorption and distribution of certain assets.

As of March 31, 2025, Bancolombia Group has 34,182 employees, 34,563 banking correspondents, 6,103 ATMs and operates through 852 offices.

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NOTE 2. MATERIAL ACCOUNTING POLICIES
A.Basis for preparation of Condensed Consolidated Interim Financial Statements
The Condensed Consolidated Interim Financial Statements for the cumulative three months ended on March 31, 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 the Bancolombia S.A. and its subsidiaries 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 March 31, 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 the Group Bancolombia 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 March 31, 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 three months ended on March 31, 2025 and 2024 are not necessarily indicative of the results for the full year. The Group Bancolombia 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.
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.
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 March 31, 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.

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C.Material accounting policies and recently issued accounting pronouncements
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
Amendments to IFRS 9 Financial instruments and IFRS 7 Financial instruments: disclosures - Classification and measurement of financial instruments: In May 2024, the Board issued amendments to the classification and measurement requirements in IFRS 9. These amendments respond to feedback from post-implementation review of the accounting standard and clarify the requirements in areas where stakeholders have raised concerns, or where new issues have emerged since IFRS 9 was issued.
These amendments include:
-Clarifying the classification of financial assets with environmental, social and corporate governance (ESG) and similar features: ESG-linked features in loans could affect whether the loans are measured at amortised cost or fair value. To resolve any potential diversity in practice, the amendments clarify how the contractual cash flows on such loans should be assessed.
-Settlement of liabilities through electronic payment systems: The amendments clarify the date on which a financial asset or financial liability is derecognised. The IASB also decided to develop an accounting policy option to allow a company to derecognise a financial liability before it delivers cash on the settlement date if specified criteria are met.
With these amendments, the IASB has also introduced additional disclosure requirements to enhance transparency for investors regarding investments in equity instruments designated at fair value through other comprehensive income and financial instruments with contingent features, for example features tied to ESG-linked targets.
The amendments are effective for annual reporting periods beginning on or after January 1, 2024, 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.
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.
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 Bank’s President (CEO) and Financial Vicepresident (CFO). The segment information has been prepared following the Bank’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).

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•Asset quality and loan coverage ratios.

The Bank 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 Bank’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 Bank’s operating segments are comprised as follows:
•Banking Colombia

This segment provides retail and corporate banking products and services to individuals, companies and national and local governments in Colombia. The Bank’s strategy in Colombia is to grow with these clients based on value added and long-term relationships. In order to offer specialized services to individuals to guarantee quality service and promote business growth and country development.

In order to offer specialized services to individuals, small and medium-sized enterprises (SMEs) and large companies, the individual sales force classifies its target customers as: Personal, Plus and Corporate. The Bank´s corporate and government sales force targets and specializes in companies with more than COP 100,000 in revenue in twelve economic sectors: agribusiness, commerce, manufacturing of supplies and materials, consumer goods, financial services, health, education, construction, government, infrastructure, real estate, and natural resources.

This segment is responsible for managing the Bank operations with its own portfolio, liquidity and distribution of treasury products and services to its customers in Colombia.
As of March 31, 2025, Nequi is in process to obtain an authorization certificate or operating permit, accredited by the Financial Superintendence of Colombia in order to operate. For further information, see Note 1. Reporting Entity.
•Banking Panama

This segment provides retail and commercial banking products and services to individuals and companies in Panama and includes all the operations of Banistmo S.A. and its subsidiaries, which are managed and monitored by the CODM on a consolidated basis. Banking Panama also includes operations of the following operational stage subsidiaries: Banistmo Investment Corporation S.A., Leasing Banistmo S.A. y Valores Banistmo S.A.; and of the following non-operational subsidiaries: Banistmo Panamá Fondo de Inversión S.A., Banistmo Capital Markets Group Inc., Anavi Investment Corporation S.A., Desarrollo de Oriente S.A., Steens Enterprises S.A. and Ordway Holdings S.A..

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 March 31, 2025, the company is in the process of dissolution and liquidation, 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.

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.

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•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 segments also includes the operations of Bancolombia Capital Holdings USA LLC, Bancolombia Capital LLC and 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 Bank 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 March 31, 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 Bank 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) and since 2024 through 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 Bank: Valores Simesa S.A., Negocios Digitales Colombia S.A.S., Inversiones CFNS S.A.S., Sistema de Inversiones y Negocios S.A. Sinesa and the technology services company Wompi S.A.S. In addition, it includes Wenia LTD, a corporate 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 Bank.
Financial performance by operating segment:
The CODM reviews the performance of the Bank using the following financial information by operating segment:
Three months ended March 31, 2025
Banking Colombia Banking Panamá Banking El Salvador Banking Guatemala Trust InvestmentBanking Brokerage International Banking All other segments Total segments
In millions of COP
Total interest and valuation on financial instruments 6,423,652 641,121 493,890 511,785 12 1 16,042 266,820 60,136 8,413,459
Interest income on loans and financial leases 6,050,299 532,963 427,190 471,699 12 - 1,088 219,799 60,558 7,763,608
Debt investments 401,386 88,367 66,521 40,505 - 1 12,795 23,992 28 633,595
Derivatives, net (42,609) 574 - - - - (287) (57) (451) (42,830)
Liquidity operations, net 14,576 19,217 179 (419) - - 2,446 23,086 1 59,086
Interest expenses (2,466,379) (325,054) (112,512) (226,692) (29) - (35) (185,812) (32,946) (3,349,459)
Net interest margin and valuation on financial instruments before impairment on loans and financial leases, off balance sheet credit instruments and other financial instruments 3,957,273 316,067 381,378 285,093 (17) 1 16,007 81,008 27,190 5,064,000
Credit impairment charges, net (869,583) (18,051) (60,500) (113,873) (359) 191 (32) (34,070) (3,272) (1,099,549)
Net interest margin and valuation on financial instruments after impairment on loans and financial leases, off balance sheet credit instruments and other financial instruments 3,087,690 298,016 320,878 171,220 (376) 192 15,975 46,938 23,918 3,964,451
(Expenses) Income from transactions the operating segments of the Bank (46,869) (5,938) 1,662 (24,543) (16,233) 1,321 24,266 93,469 (27,135) -
Commissions income(1)
 1,411,605 127,980 143,536 49,551 122,697 2,721 36,774 12,795 13,576 1,921,235
Commissions expenses (732,334) (71,459) (67,936) (22,803) (2,627) (17) (2,242) (2,563) (1,486) (903,467)
Total commissions, net 679,271 56,521 75,600 26,748 120,070 2,704 34,532 10,232 12,090 1,017,768
Other operating income (expenses) 311,421 9,014 17,226 25,656 2,237 (449) 2,124 3,743 475,495 846,467

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Three months ended March 31, 2025
Banking Colombia Banking Panamá Banking El Salvador Banking Guatemala Trust InvestmentBanking Brokerage International Banking All other segments Total segments
Dividends and net income on equity investments(2)
 29,164 1,442 1,635 351 6,678 19,460 904 15 77,676 137,325
Total operating income, net 4,060,677 359,055 417,001 199,432 112,376 23,228 77,801 154,397 562,044 5,966,011
Operating expenses(3)
 (2,248,693) (217,210) (195,651) (164,072) (43,757) (12,144) (52,984) (24,693) (276,863) (3,236,067)
Impairment, depreciation and amortization (190,867) (24,443) (22,992) (14,999) (805) (23) (754) (804) (10,570) (266,257)
Total operating expenses (2,439,560) (241,653) (218,643) (179,071) (44,562) (12,167) (53,738) (25,497) (287,433) (3,502,324)
Profit before income tax 1,621,117 117,402 198,358 20,361 67,814 11,061 24,063 128,900 274,611 2,463,687
(1)For further information about income from contracts with customers, see Note 14.3. Fees and commissions.
(2)For further information see Note 14.5. Dividends and net income on equity investments.
(3)Includes salaries and employee benefits, other administration and general expenses and taxes other than income tax.
Three months ended March 31, 2024
Banking Colombia Banking Panamá Banking El Salvador Banking Guatemala Trust InvestmentBanking Brokerage International Banking All other segments Total segments
In millions of COP
Total interest and valuation on financial instruments 7,207,598 649,861 427,277 437,030 21 1 8,879 295,807 70,920 9,097,394
Interest income on loans and financial leases 6,731,307 555,292 376,100 406,406 21 - 1,533 230,172 70,920 8,371,751
Debt investments 366,412 69,265 50,827 29,008 - 1 7,364 33,170 - 556,047
Derivatives, net 7,118 776 271 - - - (1,851) - - 6,314
Liquidity operations, net 102,761 24,528 79 1,616 - - 1,833 32,465 - 163,282
Interest expenses (3,134,771) (313,404) (105,121) (181,799) (34) - (42) (162,409) (41,499) (3,939,079)
Net interest margin and valuation on financial instruments before impairment on loans and financial leases, off balance sheet credit instruments and other financial instruments 4,072,827 336,457 322,156 255,231 (13) 1 8,837 133,398 29,421 5,158,315
Credit impairment charges, net (1,062,994) (61,858) (66,630) (99,441) (440) 821 7 (1,421) (23,024) (1,314,980)
Net interest margin and valuation on financial instruments after impairment on loans and financial leases, off balance sheet credit instruments and other financial instruments 3,009,833 274,599 255,526 155,790 (453) 822 8,844 131,977 6,397 3,843,335
(Expenses) Income from transactions the operating segments of the Bank (31,808) (9,151) (8,590) (17,200) (12,253) 3,219 19,337 92,106 (35,660) -
Commissions income(1)
 1,302,709 121,356 113,645 48,860 108,800 8,140 27,145 14,143 7,094 1,751,892
Commissions expenses (608,864) (56,096) (49,280) (18,444) (865) (30) (2,296) (2,538) (413) (738,826)
Total commissions, net 693,845 65,260 64,365 30,416 107,935 8,110 24,849 11,605 6,681 1,013,066
Other operating income 91,591 11,312 11,756 35,782 2,200 379 1,041 2,555 472,713 629,329
Dividends and net income on equity investments(2)
 (3,594) 6,492 1,451 7 8,034 10,281 1,323 7 60,806 84,807
Total operating income, net 3,759,867 348,512 324,508 204,795 105,463 22,811 55,394 238,250 510,937 5,570,537
Operating expenses(3)
 (2,007,474) (193,312) (174,266) (143,618) (38,034) (11,377) (47,580) (19,481) (295,242) (2,930,384)
Impairment, depreciation and amortization (189,411) (26,276) (18,672) (11,936) (655) (27) (676) (590) (12,019) (260,262)
Total operating expenses (2,196,885) (219,588) (192,938) (155,554) (38,689) (11,404) (48,256) (20,071) (307,261) (3,190,646)
Profit before income tax 1,562,982 128,924 131,570 49,241 66,774 11,407 7,138 218,179 203,676 2,379,891
(1)For further information about income from contracts with customers, see Note 14.3. Fees and commissions.
(2)For further information see Note 14.5. 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:
March 31, 2025 December 31, 2024
In millions of COP
Cash and balances at central bank
Cash 9,050,781 9,439,363
Due from central banks(1)
 6,627,669 7,504,135
Due from other private financial entities(2)
 4,685,062 7,778,937
Checks on hold 118,334 132,929
Remittances of domestic negotiated checks in transit 11,607 26,172
Total cash and due from banks 20,493,453 24,881,536
Money market transactions
Interbank borrowings(3)
 4,345,084 2,239,615
Reverse repurchase agreements and other similar secured loans(4)
 3,436,757 5,722,948
Total money market transactions 7,781,841 7,962,563
Total cash and cash equivalents 28,275,294 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

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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 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 January 29, 2025, to March 29, 2025, 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 23 June 2021.
(2)The variation corresponds mainly due to treasury trading strategies in foreign currencies.
(3)The increase is mainly presented in Bancolombia Panama S.A.
(4)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 March 31, 2025 and December 31, 2024, there is restricted cash amounting to COP 515,984 and COP 530,924, respectively, included in other assets on the Condensed Consolidated Interim Statement of Financial Position, which these are represented mainly margin deposits pledged as collateral for derivative contracts traded through clearing houses.
NOTE 5. FINANCIAL ASSETS INVESTMENTS AND DERIVATIVES
5.1Financial assets investments
The Bank’s securities portfolios at fair value through profit or loss, other comprehensive income and at amortized cost are listed below, as of March 31, 2025, and December 31, 2024:
As of March 31, 2025
Financial assets investments Measurement methodology Total carrying
value, net
Fair value through
profit or loss		 Fair value through other
comprehensive income, net		 Amortized
cost, net
In millions of COP
Securities issued by the Colombian Government(1)
 10,255,416 2,740,094 152,361 13,147,871
Securities issued by foreign governments 10,637,332 1,282,650 605,780 12,525,762
Corporate bonds 207,868 644,712 3,491,350 4,343,930
Securities issued by government entities 117,306 - 3,602,219 3,719,525
Securities issued by other financial institutions(2)
 779,962 217,477 503,197 1,500,636
Total debt instruments(3)
 21,997,884 4,884,933 8,354,907 35,237,724
Total equity securities 651,511 471,780 1,123,291
Total other instruments financial(4)
 33,043 33,043
Total financial assets investments 22,682,438 5,356,713 8,354,907 36,394,058
(1)The decrease in securities measured at fair value through profit or loss corresponds mainly in Bancolombia S.A. to Treasury securities (TES).
(2)Includes mortgage-backed securities (TIPS) measured at fair value through profit or loss amounting to COP 123,630. For further information on TIPS’ fair value measurement see Note 19. Fair value of assets and liabilities.
(3)At March 31, the Bank has recognized in the Condensed Consolidated Interim Statement of Comprehensive Income COP (2,668) related to debt instruments at fair value through OCI. See Condensed Consolidated Interim Statement of Comprehensive Income.
(4)Corresponds to convertible notes or agreements for the future purchase of shares, Simple Agreement for Future Equity “SAFE”, by Sistema de Inversiones y Negocios S.A., Banagrícola S.A., Inversiones CFNS S.A.S., and Bancolombia S.A.
As of December 31, 2024
Financial assets investments Measurement methodology Total carrying
value, net
Fair value through
profit or loss		 Fair value through other
comprehensive income, net		 Amortized
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)
 731,564 276,837 601,521 1,609,922
Total debt instruments(2)
 23,035,281 5,084,416 8,404,878 36,524,575

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Financial assets investments Measurement methodology Total carrying
value, net
Fair value through
profit or loss		 Fair value through other
comprehensive income, net		 Amortized
cost, net
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 19. Fair value of assets and liabilities.
(2)At December 31, the Bank 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 Sistema de Inversiones y Negocios S.A., Banagrícola S.A., Inversiones CFNS S.A.S., and Bancolombia 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 March 31, 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
Change of measurement 1,262 - - 1,262
Sales and maturities (1,200,174) - - (1,200,174)
Purchases and renewals 1,209,704 - - 1,209,704
Valuation and payments 30,669 (7,784) (1,471) 21,414
Foreign Exchange (257,469) (22,387) (1,804) (281,660)
Gross carrying amount as at 31 March 2025 12,782,644 423,894 33,302 13,239,840
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 shows provisions detail for the debt instruments portfolio using the expected credit losses model:
As of March 31, 2025
Concept Stage 1 Stage 2 Stage 3 Total
In millions of COP
Securities at amortized cost 7,951,366  370,239  33,302  8,354,907 
Carrying amount 7,976,078  375,603  52,041  8,403,722 
Loss allowance (24,712) (5,364) (18,739) (48,815)
Securities at fair value through other comprehensive income(1)
 4,831,278  53,655  -  4,884,933 
Total debt instruments portfolio measure at fair value through OCI and amortized cost 12,782,644  423,894  33,302  13,239,840 
(1)Loss allowance of investments at fair value through OCI corresponds to COP (4,219) classified mostly in stage 1 to COP (3,682) and in stage 2 to COP (537). The decrease in relation to 2024 is mainly to net provisions recognized during the period for COP 2,085.

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As of December 31, 2024
Concept Stage 1 Stage 2 Stage 3 Total
In millions of COP
Securities at amortized cost 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
(1) Loss allowance of of investments at fair value through OCI corresponds to COP (6,513) classified mainly in stage 1 to COP (5,734). The increase in relation to 2023 is due to the acquisition of instruments to COP (2,517) and sales and maturities to COP 1,708.
The following table sets forth the changes in the allowance for debt instruments measured at amortized cost:
As of March 31, 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
Change of measurement 1 - - 1
Sales and maturities (280) - - (280)
New debt instruments purchased(1)
 2,920 - - 2,920
Net provisions recognised during the period (10,111) (2,355) 2,188 (10,278)
Foreign Exchange(2)
 (1,227) (401) (857) (2,485)
Loss allowance of March 31, 2025 24,712 5,364 18,739 48,815
(1)Impairment is mainly in securities issued by government entities by Bancolombia S.A.
(2) The variation is due to the variation in the market representative rate during the year 2025.
As of March 31, 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 
Sales and maturities (1,783) (5,895) -  (7,678)
New debt instruments purchased(1)
 4,835  -  -  4,835 
Net provisions recognised during the period (4,760) 3  (2,880) (7,637)
Foreign Exchange 123  32  132  287 
Loss allowance of March 31, 2024 28,354  6,053  11,203  45,610 
(1)Impairment is mainly in securities issued by government entities and corporate bonds by Bancolombia S.A. and Banistmo S.A.
The Bank 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 March 31, 2025, and 2024, COP 4,378 and COP 5,919, respectively. See Condensed Consolidated Interim Statement of Comprehensive Income.
Equity securities that are measured at fair value through OCI are considered strategic for the Bank 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
March 31, 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 80,083 76,795
Equity securities unlisted:
Telered S.A. 152,836 160,761
Asociación Gremial de Instituciones Financieras Credibanco S.A. 109,011 109,011
Transacciones y Transferencias, S. A.
 52,669 55,401
Compañía de Procesamiento de Medios de Pago Guatemala (Bahamas), S. A. 17,976 18,913
Cámara de Riesgo Central de Contraparte de Colombia S.A. 17,385 17,385
Suncolombia SAS 6,288 —
Derecho Fiduciario Inmobiliaria Cadenalco 4,240 4,212
Others 31,290 31,617
Total equity securities at fair value through OCI 471,780 474,097
As of March 31, 2025 impairment loss was recognized on equity securities at fair value through OCI for COP 15. Dividends received from equity investments at fair value through OCI held as of March 31, 2025 and 2024 amounted to COP 4,785 and COP 9,005, respectively. See Note 14.5. Dividends and net income on equity investments.

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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 March 31, 2025 and December 31, 2024:
Composition March 31, 2025 December 31, 2024
In millions of COP
Commercial 153,183,096  153,252,811 
Consumer 54,558,894  55,815,683 
Mortgage 41,964,536  41,741,601 
Financial Leases 27,418,288  27,291,604 
Small Business Loans 1,398,191  1,352,209 
Total gross loans and advances to customers
 278,523,005  279,453,908 
Total allowance for loans, advances and lease losses (15,532,803) (16,179,738)
Total loans and advances to customers, net 262,990,202  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 March 31, 2025 and 2024:
As of March 31, 2025
Concept Commercial Consumer Mortgage Financial
Leases		 Small
business
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 
Loans sales(1)
 (74,386) —  —  —  —  (74,386)
Recovery of charged - off loans(2)
 22,150  117,223  6,905  25,051  24  171,353 
Credit impairment charges on loans, advances and financial leases, net(3)
 176,435  887,827  19,729  (2,868) 22,401  1,103,524 
Adjusted stage 3(4)
 78,085  123,597  12,268  17,563  1,529  233,042 
Charges-off(2)
 (355,813) (1,434,157) (52,755) (35,302) (20,359) (1,898,386)
Translation adjustment (84,692) (77,058) (17,493) (1,733) (1,106) (182,082)
Balance at March 31, 2025 7,021,009  6,115,209  1,203,831  1,090,983  101,771  15,532,803 
(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 accumulated year 2025 decreased by 17% compared to the same period of the previous year. This reduction is attributed to the improved performance of the consumer and SME 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 decrease in the market representative rate from COP 4,409.15 in December 2024 to COP 4,191.79 in March 2025.

As of March 31, 2024
Concept Commercial Consumer Mortgage Financial
Leases		 Small
business
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
Recovery of charged - off loans(1)
 9,741 125,356 16,247 16,093 1,660 169,097
Credit impairment charges on loans, advances and financial leases, net 37,031 1,195,019 89,489 18,441 (5,117) 1,334,863
Adjusted stage 3(2)
 89,948 147,908 8,790 17,897 2,746 267,289
Charges-off(1)
 (181,297) (1,548,159) (15,273) (36,789) (25,066) (1,806,584)
Translation adjustment(3)
 13,150 (1,739) 769 2,419 (138) 14,461
Balance at March 31, 2024 6,258,839 7,635,423 1,123,228 1,042,636 142,103 16,202,229
(1)This amount results from collections of previously charged off loans..

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(2)Recognized as a reduction to Interest Income on loans and financial leases in Condensed Consolidated Interim Statement of Income, in accordance with IFRS 9.
(3)The variation is due to the increase in the market representative rate from COP 3,822.05 in December 2023 to COP 3,842.30 in March 2024.
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
March 31, 2025 December 31, 2024
Loan portfolio modified during the period
Amortized cost before modification 2,784,636  7,563,621 
Net gain or loss on changes (43,652) (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. 277,353  325,028 
Impact of movements in the value of the portfolio and loss allowance by Stage
Variation March 2025 vs December 2024
Stage 1 (12-month expected credit losses)
The exposure in Stage 1 increased by COP 179,358 and the loss allowance decreased by COP 86,156. The increase in the portfolio at this stage is due to the dynamics of disbursements in the corporate portfolio. The decrease in the loss allowance is attributed to a higher share of the portfolio in lower-risk categories and the macroeconomic impact on PD (probability of default) models, where a downward trend in interest rates and inflation, especially in Colombia, positively affects consumer portfolios.
Stage 2 (Lifetime expected credit losses)
The exposure in Stage 2 showed a decrease of COP 109,747 and the loss allowance increased by COP 66,570. The decrease in the portfolio at this stage is due to the good performance of the portfolio. The increase in the provision is due to clients exiting default (Stage 3) and being provisioned in Stage 2 for a period of 12 months.
Stage 3 (Lifetime expected credit losses)
The exposure in Stage 3 decreased by COP 1,000,514 and the loss allowance decreased by COP 627,349. The variation in exposure and provisions at this stage is mainly due to the good performance observed across all portfolios.
Variation December 2024 vs December 2023
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.
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.

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The following explains the significant changes in the loans and the allowance for loan losses by category during the periods ended on March 31, 2025 and December 31, 2024 as a result of applying the expected credit loss model according to IFRS 9:
As of March 31, 2025
Maximum exposure to credit risk
In millions of COP
Stage 1 Stage 2 Stage 3 Total
Commercial 138,419,039  5,247,629  9,516,428  153,183,096 
Consumer 46,007,502  4,952,246  3,599,146  54,558,894 
Mortgage 37,222,284  2,895,647  1,846,605  41,964,536 
Financial Leases 22,580,248  3,366,664  1,471,376  27,418,288 
Small Business Loans 1,222,582  98,358  77,251  1,398,191 
Total gross loans and advances to customers 245,451,655  16,560,544  16,510,806  278,523,005 
Total allowance (2,088,823) (2,740,331) (10,703,649) (15,532,803)
Total Net loans and advances to customers 243,362,832  13,820,213  5,807,157  262,990,202 
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 
NOTE 7. INCOME TAX
The income tax is recognized in each of the countries where the Group Bancolombia has operations, in accordance with the tax regulations in force in each of the jurisdictions.

7.1 Components recognized in the Condensed Consolidated Interim Statement of income:

The following table presents the total income tax expense for the periods ended March 31, 2025 and 2024:

Accumulated
2025 2024
                                    In millions of COP
Current tax(1)
Fiscal term (635,786) (658,424)
Prior fiscal terms(2)
 60,470  69,840 
Total current tax (575,316) (588,584)
Deferred tax
Fiscal term (60,437) (39,440)
Prior fiscal terms(2)
 (44,291) (57,788)
Adjustments for consolidation purposes (18,868) (9,068)
Total income tax(3)
 (123,596) (106,296)
Deferred tax (698,912) (694,880)
(1)The nominal income tax rate used in Colombia for the year 2025 and 2024 is of 35%. Additionally, the Colombian financial institutions of the Group liquidated some additional points in the income tax of 5%.

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(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 7.2 Reconciliation of the effective tax rate.
7.2 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 three-month period ended March 31, 2025 and 2024:
Reconciliation of the tax rate Accumulated
2025 2024
In millions of COP
Accounting profit 2,463,687  2,379,891 
Applicable tax with nominal rate (1)
 (985,475) (951,956)
Non-deductible expenses to determine taxable profit (loss) (50,977) (48,841)
Accounting and non-tax expense (income) to determine taxable profit (loss) 208,883  182,313 
Differences in accounting bases (2)
 86,181  65,439 
Net tax and non-accountable income for the determination of taxable profit (267,717) (57,945)
Ordinary activities income exempt from taxation 468,945  194,208 
Ordinary activities income not constituting income or occasional tax gain 55,617  60,364 
Tax deductions 57,343  31,673 
Goodwill Depreciation 77  115 
Tax depreciation surplus 51,743  54,489 
Untaxed recoveries (42,315) (17,498)
Tax rate effect in other countries (212,202) (77,091)
Prior fiscal terms 16,179  12,052 
Other effects of the tax rate by reconciliation between accounting profit and tax expense (income) (77,550) (142,202)
Excess of presumptive income over net income (7,644) — 
Total income tax (698,912) (694,880)
(1) The nominal income tax rate used in Colombia for the year 2025 and 2024 is of 35%. Additionally, 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 in Colombia and the full International Financial Reporting Standards (IFRS).
7.3 Components recognized in the Condensed Consolidated Interim Statement of Comprehensive Income (OCI)
Accumulated Results
See Condensed Consolidated Interim Statement of Comprehensive Income
March 31, 2025
In millions of COP
Amounts before taxes Deferred tax Net taxes
Remeasurement income related to defined benefit liability —  27  27 
Unrealized gain Investments in equity instruments measured at fair value through other comprehensive income (FVTOCI) 3,978  400  4,378 
Unrealized loss Investments in debt instruments measured at fair value through other comprehensive income (FVTOCI) (6,183) 3,515  (2,668)
Gain on net investment hedge in foreign operations 192,264  (71,154) 121,110 
Exchange differences arising on translating the foreign operations (1,073,893) —  (1,073,893)
Unrealized loss Cash flow hedge (62) 25  (37)
Unrealized loss on investments in associates and joint ventures using equity method (250) 71  (179)
Net (884,146) (67,116) (951,262)

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March 31, 2024
In millions of Colombian pesos
Amounts before taxes Deferred tax Net taxes
Remeasurement income related to defined benefit liability —  7  7 
Unrealized gain Investments in equity instruments measured at fair value through other comprehensive income (FVTOCI) 6,460  (541) 5,919 
Unrealized loss Investments in debt instruments measured at fair value through other comprehensive income (FVTOCI) (6,220) 2,192  (4,028)
Loss on net investment hedge in foreign operations (38,075) 16,784  (21,291)
Exchange differences arising on translating the foreign operations 97,043  —  97,043 
Unrealized loss on investments in associates and joint ventures using equity method (6,347) 908  (5,439)
Net 52,861  19,350  72,211 
7.4 Deferred tax
In accordance with its financial projections, the companies from the Group Bancolombia'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 Group Bancolombia'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.

The deferred tax asset and liability for each of the concepts that generated taxable or deductible temporary differences for the period ending March 31, 2025 are detailed below:
December 31, 2024 Effect on Income Statement Effect on OCI
Effect on Equity (1)
 Foreign Exchange Adjustments for consolidation purposes March 31, 2025
Asset Deferred Tax:
Property and equipment 2,668  163  —  —  (116) (622) 2,093 
Employee Benefits 282,601  (1,778) 27  —  (2,334) —  278,516 
Deterioration assessment 612,213  (19,334) —  —  (29,673) 4,353  567,559 
Investments evaluation 5,278  (284) —  —  (17) —  4,977 
Derivatives Valuation 6,063  7,196  25  —  —  —  13,284 
Tax credits settlement 4,978  (2,005) —  —  —  —  2,973 
Financial Obligations 197,660  (120,891) —  —  —  —  76,769 
Insurance Operations 34,906  (7,184) —  —  (1,721) —  26,001 
Net investment coverage in operations abroad 362,786  (33,351) (71,154) —  —  —  258,281 
Other deductions 290,284  (4,287) —  —  (2,120) —  283,877 
implementation adjustment 401,830  (25,824) —  —  (8,017) —  367,989 
Total Asset Deferred Tax(2)
 2,201,267  (207,579) (71,102) —  (43,998) 3,731  1,882,319 
Liability Deferred Tax:
Property and equipment (114,638) 23,741  —  —  1,026  (28,447) (118,318)
Deterioration assessment (973,820) 38,109  —  —  —  5,559  (930,152)
Participatory titles evaluation (377,994) (37,617) 3,915  —  2,402  341  (408,953)
Derivatives evaluation (82,375) 80,493  —  —  87  261  (1,534)
Lease restatement (321,813) (43,712) —  —  —  —  (365,525)
Investments in associates Adjustment for equity method (24,805) 6,550  71  18  (2,454) (1,053) (21,673)
Financial Obligations (556) 27  —  —  27  —  (502)
Goodwill (1,574,360) 281  —  —  352  —  (1,573,727)
Insurance Operations (37,379) 7,591  —  —  1,844  —  (27,944)

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December 31, 2024 Effect on Income Statement Effect on OCI
Effect on Equity (1)
 Foreign Exchange Adjustments for consolidation purposes March 31, 2025
Asset Deferred Tax:
Properties received in payment (104,990) (4,599) —  —  640  —  (108,949)
Other deductions (403,259) 31,987  —  —  3,221  740  (367,311)
implementation adjustment (25) —  —  —  —  —  (25)
Total Liability Deferred Tax (2)
 (4,016,014) 102,851  3,986  18  7,145  (22,599) (3,924,613)
Net Deferred Tax (1,814,747) (104,728) (67,116) 18  (36,853) (18,868) (2,042,294)
(1)Recognition of the valuation of the investment in Protection by Fiduciaria Bancolombia S.A.
(2)The values revealed in the Condensed Consolidated Interim Statement of Financial Position correspond to the sum of the net deferred tax per company.
7.5 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.
March 31, 2025 December 31, 2024
In millions of COP
Temporary differences
Local Subsidiaries (196,495) (373,971)
Foreign Subsidiaries (18,591,991) (20,176,494)
7.6 Tax credits
For the period 2025, a deferred tax asset was recognized since the Group companies will have future taxable profits in which they can charge this temporary difference.
The following is the detail of the fiscal losses and presumptive income excesses over net income in the Group's entities, which have not been used, as of March 31, 2025.
Company Base Deferred tax recognized asset
In millions of COP
Banca de Inversión Bancolombia S.A. 7,432 2,973
Total 7,432 2,973
7.7 Dividends
7.7.1 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.
7.7.2 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, considering that the Bank, its affiliates, and national subsidiaries belong to the same business group.
7.8 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 Bancolombia.

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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 Group Bancolombia. Consequently, a dispute or inspection by the tax authority on a tax treatment may affect the Group Bancolombia 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 Group Bancolombia did not recognize uncertain tax positions in its financial statements.
NOTE 8. DEPOSITS BY CUSTOMERS
The detail of the deposits as of March 31, 2025 and December 31, 2024 is as follows:
Deposits March 31, 2025 December 31, 2024
In millions of COP
Saving accounts(1)
 124,114,011  124,636,994 
Time deposits(2)
 111,289,855  109,760,722 
Checking accounts 35,588,232  38,033,696 
Other deposits(1)
 5,038,019  6,627,989 
Total deposits by customers 276,030,117  279,059,401 
(1)As of March 31, 2025 and December 31, 2024 includes Nequi deposits by COP 4,366,164 and COP 4,449,420, respectively.
(2) The increase is mainly due to Bancolombia S.A in time deposits less than 6 months.


NOTE 9. 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 March 31, 2025 December 31, 2024
In millions of COP
Interbank Deposits
Interbank liabilities
 634,414  716,493 
Total interbank 634,414  716,493 
Repurchase agreements and other similar secured borrowing
Short selling operations(1)
 83,135  155,973 
Temporary transfer of securities(2)
 973,817  532,495 
Repurchase agreements 208,776  372,004 
Total Repurchase agreements and other similar secured borrowing
 1,265,728  1,060,472 
Total money market transactions 1,900,142  1,776,965 
(1)The decrease is mainly due to Bancolombia S.A.
(2)Increase recorded in Bancolombia due to repos in simultaneous operations with the CRCC.


NOTE 10. BORROWINGS FROM OTHER FINANCIAL INSTITUTIONS
As of March 31, 2025 and December 31, 2024, the composition of the borrowings from other financial institutions measured at amortized cost is the following:
Borrowings from other financial institutions March 31, 2025 December 31, 2024
In millions of COP

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Obligations granted by foreign banks(1)
 6,688,622 10,619,033
Obligations granted by domestic banks
 5,210,715 5,070,499
Total borrowings from other financial institutions 11,899,337 15,689,532
(1)The variation is due to cancellation of obligations for advance payments and maturities.
Obligations granted by foreign banks
As of March 31, 2025
Financial entity Rate Minimum Rate Maximum March 31, 2025
In millions of COP
Financing with Correspondent Banks and Multilateral Entities(1)
 1.50% 8.99% 6,060,677 
Banco Interamericano de Desarrollo (BID) 8.41% 9.56% 584,676 
Banco Latinoamericano de Comercio Exterior (Bladex) 5.80% 5.80% 43,269 
Total 6,688,622 

(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 March 31, 2025 and December 31, 2024, are the following:
Foreign March 31, 2025 December 31, 2024
In millions of COP
Amount expected to be settled:
No more than twelve months after the reporting period 4,038,242  7,428,943 
More than twelve months after the reporting period
 2,650,380  3,190,090 
Total(1)
 6,688,622  10,619,033 

(1)The variation is due to cancellation of obligations for advance payments and maturities.

Obligations granted by domestic banks
As of March 31, 2025
Financial entity Rate Minimum Rate Maximum March 31, 2025
In millions of COP
Financiera de desarrollo territorial (Findeter) 4.15  % 17.42  % 2,480,215 
Fondo para el financiamiento del sector agropecuario (Finagro) 5.09  % 12.28  % 1,310,951 
Banco de comercio exterior de Colombia (Bancoldex)
 2.17  % 17.56  % 346,674 
Other private financial entities 5.13  % 13.01  % 1,072,875 
Total 5,210,715 
As of December 31, 2024
Financial entity Rate Minimum Rate Maximum December 31, 2024
In millions of COP
Financiera de desarrollo territorial (Findeter) 4.15  % 17.21  % 2,239,644 
Fondo para el financiamiento del sector agropecuario (Finagro) 5.09  % 13.59  % 1,363,891 

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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 March 31, 2025 and December 31, 2024, are as follows:
Domestic March 31, 2025 December 31, 2024
In millions of COP
Amount expected to be settled:
No more than twelve months after the reporting period
 728,524  679,069 
More than twelve months after the reporting period 4,482,191  4,391,430 
Total 5,210,715  5,070,499 
As of March 31, 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 11. PROVISIONS AND CONTINGENT LIABILITIES

Contingencies due to judicial or administrative proceedings/litigations in which Bancolombia and the entities with which financial statements are consolidated as of March 31, 2025, are listed as follow, and that represents a contingency superior to USD 7,313.

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 March 31, 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 March 31, 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 Algonoderos 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 March 31, 2025, Bancolombia S.A. is still working in the on the deliverables requested by the ANLA and derived from the complementary studies of Stage I, and the demolition activities of the warehouses planned for Stage II were completed. The pre-feasibility activities for Stage III are also being executed and the execution of the social management plan with the communities in the area of influence of the remediation plan, emergency and contingency plan, hazardous waste management plan and biotic environment protection plan continues.

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 March 31, 2025, there is a provision of COP 59,964to attend the execution of the pending activities of the plan.

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.


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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. As of March 31, 2025, the proceeding ended with the first instance judgement in favor of the Bank.

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. As of March 31, 2025, the initial hearing has not been held. The initial hearing was convened for June 17 and 18, 2025. 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 128,000.

On August 24, 2023, the First Instance Court issued a favorable judgment to Fiduciaria Bancolombia. As of March 31, 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.

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 March 31,2025, 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 March 31, 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 March 31, 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.

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.


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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 March 31, 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 March 31, 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 March 31, 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 March 31, 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.

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 March 31, 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.

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NOTE 12. OTHER LIABILITIES
Other liabilities consist of the following:
Other liabilities March 31, 2025 December 31, 2024
In millions of COP
Dividends(1)
 3,772,976  873,598 
Payables 3,006,773  3,547,341 
Suppliers 1,504,366  1,840,622 
Advances 1,189,991  1,373,401 
Security contributions 613,884  559,038 
Salaries and other labor obligations 544,862  428,077 
Provisions 440,790  439,095 
Collection services
 364,158  480,202 
Bonuses and short-term benefits(2)
 327,356  676,967 
Deposits delivered as security(3)
 284,650  378,767 
Advances in leasing operations and loans 152,890  173,168 
Deferred interests 69,805  106,058 
Liabilities from contracts with customers 63,857  68,040 
Other 45,031  46,187 
Total 12,381,389  10,990,561 
(1)Dividends payable corresponding to the distribution of profits for the year 2024, declared in March 2025. See Condensed Consolidated Interim Statement of Changes in Equity, distribution of dividends..
(2)The variation is mainly due to the payment of bonuses for employees in accordance with the variable compensation model of the Bank.
(3)The variation is generated by the valuation of current operations with international counterparties. For more information See Note 5.2. Derivative financial instruments.
NOTE 13. APPROPRIATED RESERVES
As of March 31, 2025 and December 31, 2024, the appropriated retained earnings consist of the following:
Concept March 31, 2025 December 31, 2024
In millions of COP
Appropriation of net income(1)(2)
 12,670,581  12,700,961 
Others(3)
 11,632,215  9,874,876 
Total appropiated reserves 24,302,796  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 March 31, 2025 and December 31, 2024 includes reclassification of unclaimed dividends under Article 85 of the Bancolombia S.A Bylaws for COP 1,615 and COP 506, respectively.
(3)At Bancolombia S.A., the establishment of an occasional reserve for the institution's equity strengthening and future growth continues; 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.

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NOTE 14. OPERATING INCOME
14.1.Interest and valuation on financial instruments
The following table sets forth the detail of interest and valuation on financial asset instruments for the three-months periods ended March 31, 2025 and 2024:
Accumulated
Interest and valuation on financial instruments 2025 2024
In millions of COP
Interest on debt instruments using the effective interest method 233,730 257,774
Interest and valuation on financial instruments
Debt investments(1)
 399,865 298,273
Spot transactions 19,382 (6,933)
Repos(2)
 (11,265) 108,392
Derivatives(3) (42,830) 6,314
Total valuation on financial instruments 365,152 406,046
Total Interest and valuation on financial instruments 598,882 663,820
(1)The increase is mainly presented in Bancolombia S.A., due to a higher volume and higher valuation in the portfolio of securities issued by foreign governments (United States Treasury Bonds), which are directly related to the variations in the exchange rate.
(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 due to losses in futures valuation.
14.2.Interest expenses
The following table sets forth the detail of interest on financial liability instruments for the three-months periods ended March 31, 2025 and 2024:
Accumulated
Interest expenses 2025 2024
In millions of COP
Deposits(1)
 2,803,210  3,187,874 
Borrowing costs(1)(2)
 272,541  401,573 
Debt instruments in issue
 208,711  285,171 
Lease liabilities 33,829  33,214 
Preferred shares 14,837  14,837 
Overnight funds 6,245  4,553 
Other interest (expense) 10,086  11,857 
Total interest expenses 3,349,459  3,939,079 
(1)The intervention rate issued by the Banco de la República de Colombia for the period of 2025 it remained at 9.50% and for 2024 it started at 13.00% and closed at 9.50%. This has an impact on the rates of deposits and financial obligations.
(2)The decrease is mainly in Bancolombia S.A due to prepayments of domestic obligations with Findeter.
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 4,647,879 y COP 4,690,446 as a March 31, 2025 and 2024.
14.3.Fees and commissions
The Bank has elected to present the income from contracts with customers as an element in a line named “Commissions income, net” in the Condensed Intermediate Statement of Consolidated Results separated 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.

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In the following table, the description of the main activities through which the Bank generates revenue from contracts with customers is presented:
Commissions income, net 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.
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.
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.
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.
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.
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 principal and in some special cases as agent.
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. 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.

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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.
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. 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 14.4 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. To view the details of the balance, refer to line ‘Gain on sale of assets’ in Note 14.4 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.
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.
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.
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.
The Bank 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.

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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 Bank’ segments see Note 3. Operating segments:

As of March 31, 2025
Banking Colombia
Banking Panama
 Banking El Salvador
Banking Guatemala
 Trust
Investment Banking
 Brokerage
International Banking
All Other Segments
 Total
In millions of COP
Revenue from contracts with customers
Commissions income
Credit and debit card fees and commercial establishments 672,647  65,292  74,658  16,874  -  -  -  465  -  829,936 
Banking services
 181,911  27,678  44,778  15,482  -  -  -  10,758  12,680  293,287 
Payment and collections
 260,919  2,745  -  -  -  -  -  -  -  263,664 
Bancassurance
 211,235  15,403  5  -  -  -  -  -  -  226,643 
Fiduciary Activities and Securities
 -  4,793  1,746  230  122,697  -  26,729  13  -  156,208 
Acceptances, Guarantees and Standby Letters of Credit
 18,732  8,083  1,618  410  -  -  -  133  -  28,976 
Brokerage
 -  3,272  -  -  -  -  6,468  -  -  9,740 
Investment banking
 -  586  638  -  -  2,721  1,105  -  -  5,050 
Others
 66,161  128  20,093  16,555  -  -  2,472  1,426  896  107,731 
Total revenue of contracts with customers
 1,411,605  127,980  143,536  49,551  122,697  2,721  36,774  12,795  13,576  1,921,235 
As of March 31, 2024
Banking Colombia
Banking Panama
 Banking El Salvador
Banking Guatemala
 Trust
Investment Banking
 Brokerage
International Banking
All Other Segments
 Total
In millions of COP
Revenue from contracts with customers
Commissions income
Credit and debit card fees and commercial establishments
 648,825  60,576  55,329  19,854  -  -  -  438  -  785,022 
Banking services
 149,857  25,853  38,419  15,574  -  -  -  12,223  6,908  248,834 
Payment and collections
 237,092  2,725  -  -  -  -  -  -  -  239,817 
Bancassurance
 192,503  15,796  13  -  -  -  -  -  -  208,312 
Fiduciary Activities and Securities
 -  4,904  1,480  232  108,800  -  20,839  12  -  136,267 
Acceptances, Guarantees and Standby Letters of Credit
 17,940  7,188  1,293  812  -  -  -  157  -  27,390 
Brokerage
 -  3,867  -  -  -  -  3,084  -  -  6,951 
Investment banking
 -  391  467  -  -  8,140  2,096  -  -  11,094 
Others
 56,492  56  16,644  12,388  -  -  1,126  1,313  186  88,205 
Total revenue of contracts with customers
 1,302,709  121,356  113,645  48,860  108,800  8,140  27,145  14,143  7,094  1,751,892 
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 the Bank 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.
Contract assets with customers
The Bank receives payments from customers based on the provision of the service, in accordance to that established in the contracts. When the Bank 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 Bank recognizes the incremental costs of obtaining a contract as an expense when the amortization period of the asset is one year or less.

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Contract liabilities with customers
The contract liabilities constitute the obligation of the Bank 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.
Commissions Expenses
The following table sets forth the detail of commissions expenses for the three- months period ended March 31, 2025 and 2024:
Accumulated
2025 2024
In millions of COP
Banking services 454,090  372,922 
Sales, collections and other services 223,097  206,496 
Correspondent banking 148,996  107,462 
Payments and collections 12,742  8,927 
Others 64,542  43,019 
Total commissions expenses 903,467  738,826 
14.4.Other operating income
The following table sets forth the detail of other operating income net for the three-months period ended on March 31, 2025 and 2024:
Accumulated
Other operating income 2025 2024
In millions of COP
Leases and related services 448,497  460,096 
Net foreign exchange and Derivatives Foreign exchange contracts(1)
 201,294  19,514 
Gains on sale of assets(2)
 49,760  17,905 
Other reversals 26,968  18,864 
Investment property valuation(3)
 22,703  7,819 
Insurance(4)
 15,925  26,862 
Logistics services
 14,233  11,915 
Penalties for failure to contracts 809  2,682 
Others 66,278  63,672 
Total other operating income 846,467  629,329 
(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.

14.5.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 three-months period ended on March 31, 2025 and 2024:
Acumulated
Dividends and net income on equity investments 2025 2024
In millions of COP
Equity method(1)
 112,510  77,289 
Equity investments and other financial instruments(2)
 19,848  (2,482)
Dividends(3)
 4,967  10,000 
Total dividends and net income on equity investments 137,325  84,807 
(1)As of March 31, 2025 and 2024, corresponds to income from equity method of investments in associates for COP 105,069 and COP 94,834 (includes valuation of investments in associates at fair value), respectively, and joint ventures for COP 7,441 and COP (17,545), respectively.
(2)The variation is explained in Bancolombia S.A. for COP 11,327, mainly in FCP Pactia Inmobiliario and Inversiones CFNS S.A.S. for COP 9,485.
(3)As of March 31, 2025 and 2024, includes dividends received from equity investments at fair value through profit or loss for COP 166 and COP 994 and investments derecognised for COP 1 for both periods; dividends from equity investments at fair value through OCI for COP 4,785 and COP 9,005, respectively, and investments derecognised for COP 15 in 2025.

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NOTE 15. OPERATING EXPENSES
15.1 Salaries and employee benefit
The detail for salaries and employee benefits for the three-months period ended March 31, 2025 and 2024 are as follows:
Accumulated
Salaries and employee benefit 2025 2024
In millions of COP
Salaries(1)
 682,612  609,584 
Bonuses(2)
 249,645  153,373 
Social security contributions 173,724  159,871 
Private premium
 163,192  163,675 
Indemnization payment 33,938  45,934 
Other benefits(3)
 227,413  202,514 
Total Salaries and employee benefit 1,530,524  1,334,951 
(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 Bank.
(3)Includes vacations, severance and interest on severance, pension and employee benefits, mainly policy benefits, training and recreation.
15.2 Other administrative and general expenses
The details for administrative and general expenses for the three-months period ended March 31, 2025 and 2024 are as follows:
  Accumulated
Other administrative and general expenses 2025 2024
In millions of COP
 Maintenance and repairs(1)
 262,776  228,011 
 Fees(2)
 206,416  188,480 
 Insurance 195,769  183,020 
 Data processing(3)
 151,685  119,137 
 Frauds and claims 108,814  92,027 
 Transport 63,926  57,989 
 Advertising 34,839  26,234 
 Cleaning and security services 34,466  32,200 
 Contributions and affiliations 33,148  30,003 
 Public services 27,855  30,057 
 Useful and stationery 21,987  20,932 
 Communications 20,001  18,956 
 Properties improvements and installation 12,322  10,067 
 Real estate management 10,303  9,157 
 Disputes, fines and sanctions 8,952  16,639 
 Travel expenses 7,943  5,874 
 Publications and subscriptions 6,543  5,791 
 Storage services 4,545  4,669 
 Legal expenses 2,523  2,506 
Others 134,264  122,790 
Total other administrative and general expenses 1,349,077  1,204,539 
Taxes other than income tax 356,466  390,894 
(1)The increase is mainly in computer equipment maintenance.
(2)The increase is mainly explained by digital transformation fees.
(3)The increase is mainly generated in license maintenance.


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15.3 Impairment, depreciation and amortization
The detail for Impairment, depreciation and amortization for the three-months period ended March 31, 2025 and 2024 are as follows:
Accumulated
Impairment, depreciation and amortization 2025 2024
In millions of COP
Depreciation of premises and equipment
 157,816  164,920 
Depreciation of right-of-use assets 55,572  49,697 
Amortization of intangible assets 43,212  34,126 
Impairment of other assets, net(1)
 9,657  11,519 
Total impairment, depreciation and amortization 266,257  260,262 
(1)Includes impairment of property and equipment for COP 243 in 2025 and COP 165 in 2024.
NOTE 16. 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.
Diluted EPS is calculated by adjusting the average number of common and preferred shares outstanding to simulate the conversion of all dilutive potential common shares. The Bank had no dilutive potential common shares as of March 31, 2025 and 2024.
The following table summarizes information related to the computation of basic EPS for the three-month periods ended March 31, 2025 and 2024 (in millions of pesos, except per share data):
2025 2024
Income from continuing operations before attribution of non-controlling interests 1,764,775 1,685,011
Less: Non-controlling interests from continuing operations 27,111 21,539
Net income from controlling interest 1,737,664 1,663,472
Less: Preferred dividends declared 425,982 384,839
Less: Allocation of undistributed earnings to preferred stockholders 382,972 389,240
Net income allocated to common shareholders for basic and diluted EPS 928,710 889,393
Weighted average number of common shares outstanding used in basic EPS calculation (In millions) 510 510
Basic and diluted earnings per share to common shareholders 1,822 1,745
Basic and diluted earnings per share from continuing operations 1,822 1,745
NOTE 17. RELATED PARTY TRANSACTIONS
The parent company is Bancolombia 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, in the three-month period ended March 31, 2025, there were no transactions with related parties that materially affected the financial position or results of the Bancolombia Group.

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NOTE 18. LIABILITIES FROM FINANCING ACTIVITIES
The following table presents the reconciliation of the balances of liabilities from financing activities as of March 31, 2025 and 2024:
Balance as of January 1, 2025 Cash flows Non-cash changes Balance as of March 31, 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  224,065  (18,809) -  -  1,265,728 
Borrowings from other financial institutions (1)
 15,689,532  (3,596,357) (465,612) 272,541  (767) 11,899,337 
Debt securities in issue (1)
 11,275,216  (163,780) (441,819) 208,711  -  10,878,328 
Preferred shares (2)
 584,204  (57,701) -  14,837  -  541,340 
Total liabilities from financing activities 28,609,424  (3,593,773) (926,240) 496,089  (767) 24,584,733 
(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 342,936 and COP 102,520, 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 classified 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.
Balance as of January 1, 2024 Cash flows Non-cash changes Balance as of March 31, 2024
Foreign currency translation adjustment Interests accrued Other movements
In millions of COP
Liabilities from financing activities
Repurchase agreements and other similar secured borrowing 470,295 550,673 1,256 - - 1,022,224
Borrowings from other financial institutions (1)
 15,648,606 (2,020,568) 82,072 401,573 317 14,112,000
Debt securities in issue (1)
 14,663,576 (549,032) 54,889 285,171 - 14,454,604
Preferred shares (2)
 584,204 (57,701) - 14,837 - 541,340
Total liabilities from financing activities 31,366,681 (2,076,628) 138,217 701,581 317 30,130,168
(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 435,669 and COP 267,923, respectively, which are classified as cash flows from operating activities in the Condensed Consolidated Interim Statement of Cash Flow.
(1)The cash flow amounting to COP 57,702 corresponds to the fixed minimum dividend paid to the preferred shares' holders and is classified 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 19. FAIR VALUE OF ASSETS AND LIABILITIES
The following table presents the carrying amount and the fair value of the assets and liabilities as of March 31, 2025 and December 31, 2024:
Assets and liabilities Note March 31, 2025 December 31, 2024
Carrying
amount		 Fair
Value		 Carrying
amount		 Fair
Value
In millions of COP
Assets
Debt instruments at fair value through profit or loss 5.1 21,997,884  21,997,884  23,035,281  23,035,281 
Debt instruments at fair value through OCI 5.1 4,884,933  4,884,933  5,084,416  5,084,416 
Debt instruments at amortized cost 5.1 8,354,907  8,360,156  8,404,878  8,403,740 
Derivative financial instruments 2,529,449  2,529,449  2,938,142  2,938,142 

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Assets and liabilities Note March 31, 2025 December 31, 2024
Carrying
amount		 Fair
Value		 Carrying
amount		 Fair
Value
In millions of COP
Equity securities at fair value 5.1 1,123,291  1,123,291  1,011,310  1,011,310 
Other financial instruments 5.1 33,043  33,043  34,385  34,385 
Loans and advances to customers at amortized cost, net 6 262,990,202  267,030,126  263,274,170  269,345,583 
Investment properties 5,608,037  5,608,037  5,580,109  5,580,109 
Investments in associates(1)
 1,902,732  1,902,732  1,830,884  1,830,884 
Total 309,424,478  313,469,651  311,193,575  317,263,850 
Liabilities
Deposits by customers 8 276,030,117  276,132,648  279,059,401  279,463,012 
Interbank deposits 9 634,414  634,414  716,493  716,493 
Repurchase agreements and other similar secured borrowing 9 1,265,728  1,265,728  1,060,472  1,060,472 
Derivative financial instruments 2,516,148  2,516,148  2,679,643  2,679,643 
Borrowings from other financial institutions 10 11,899,337  11,899,337  15,689,532  15,689,532 
Preferred shares 541,340  359,634  584,204  407,174 
Debt instruments in issue 10,878,328  11,056,284  11,275,216  11,389,498 
Total 303,765,412  303,864,193  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.
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 Bank.

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
The Bank 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 Bank 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.


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b.Equity securities and other financial instruments
The Bank 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 Bank 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 Bank 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 Bank 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.
Counterparty credit-risk adjustments are applied to derivatives when the Bank’s position is a derivative asset and the Bank’s credit risk is incorporated when the position is a derivative liability. The Bank attempts to mitigate credit risk to third parties which are international banks 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 Bank 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 Bank also considers its own creditworthiness when determining the fair value of an instrument, including OTC derivative instruments if the Bank believes market participants would take that into account when transacting the respective instrument. The approach to measuring the impact of the Bank’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 Bank in foreign currency. For derivatives transacted with local financial institutions, the Bank 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 Bank 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 Bank 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.

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.

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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 Bank 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 Bank invests in asset-backed securities for which underlying assets are mortgages and earnings under contracts issued by financial institutions and corporations, respectively. The Bank 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 Bank 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.
h.Investments in associates measured at fair value
The Bank 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 Bank’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 Bank’s assets and liabilities that are measured at fair value on a recurring basis at March 31, 2025 and December 31, 2024:
Financial Assets
Type of instrument March 31, 2025 December 31, 2024
Fair value hierarchy Total fair value Fair value hierarchy Total fair 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 9,425,170  830,246  -  10,255,416  10,625,153  1,019,028  -  11,644,181 
Securities issued or secured by government entities -  117,306  -  117,306  -  118,760  -  118,760 
Securities issued by other financial institutions 185,627  514,205  80,130  779,962  140,703  513,040  77,821  731,564 
Securities issued by foreign governments 6,760,495  3,876,837  -  10,637,332  6,191,395  4,092,055  -  10,283,450 
Corporate bonds 102,122  89,830  15,916  207,868  124,812  98,255  34,259  257,326 
Total debt instruments at fair value through profit or loss 16,473,414  5,428,424  96,046  21,997,884  17,082,063  5,841,138  112,080  23,035,281 
Debt instruments at fair value through OCI
Securities issued by the Colombian Government 33,656  -  2,706,438  2,740,094  35,570  -  2,648,355  2,683,925 

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Financial Assets
Type of instrument March 31, 2025 December 31, 2024
Fair value hierarchy Total fair value Fair value hierarchy Total fair value
Securities issued by other financial institutions 69,182  97,662  50,633  217,477  119,479  107,614  49,744  276,837 
Securities issued by foreign governments 1,282,650  -  -  1,282,650  368,736  1,115,810  -  1,484,546 
Corporate bonds 53,655  32,505  558,552  644,712  60,922  747  577,439  639,108 
Total debt instruments at fair value through OCI 1,439,143  130,167  3,315,623  4,884,933  584,707  1,224,171  3,275,538  5,084,416 
Total debt instruments 17,912,557  5,558,591  3,411,669  26,882,817  17,666,770  7,065,309  3,387,618  28,119,697 
Equity securities
Equity securities 56,615  267,653  799,023  1,123,291  31,086  262,351  717,873  1,011,310 
Total equity securities 56,615  267,653  799,023  1,123,291  31,086  262,351  717,873  1,011,310 
Other financial assets
Other financial assets -  -  33,043  33,043  -  -  34,385  34,385 
Total other financial assets -  -  33,043  33,043  -  -  34,385  34,385 
Derivative financial instruments
Forwards
Foreign exchange contracts -  857,052  291,604  1,148,656  -  617,961  466,869  1,084,830 
Equity contracts -  728  45,888  46,616  -  298  51,347  51,645 
Total forwards -  857,780  337,492  1,195,272  -  618,259  518,216  1,136,475 
Swaps
Foreign exchange contracts -  894,741  132,073  1,026,814  -  1,200,777  262,479  1,463,256 
Interest rate contracts 97,446  94,830  23,565  215,841  105,560  114,980  15,493  236,033 
Total swaps 97,446  989,571  155,638  1,242,655  105,560  1,315,757  277,972  1,699,289 
Options
Foreign exchange contracts 748  39,439  51,335  91,522  161  36,207  66,010  102,378 
Total options 748  39,439  51,335  91,522  161  36,207  66,010  102,378 
Total derivative financial instruments 98,194  1,886,790  544,465  2,529,449  105,721  1,970,223  862,198  2,938,142 
Investment properties
Lands -  -  505,864  505,864  -  -  499,833  499,833 
Buildings -  -  5,102,173  5,102,173  -  -  5,080,276  5,080,276 
Total investment properties -  -  5,608,037  5,608,037  -  -  5,580,109  5,580,109 
Investment in associates at fair value
Investment in associates at fair value -  -  1,902,732  1,902,732  -  -  1,830,884  1,830,884 
Total investment in associates at fair value -  -  1,902,732  1,902,732  -  -  1,830,884  1,830,884 
Total 18,067,366  7,713,034  12,298,969  38,079,369  17,803,577  9,297,883  12,413,067  39,514,527 

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Financial liabilities
Type of instrument March 31, 2025 December 31, 2024
Fair value hierarchy Total fair
value		 Fair value hierarchy Total fair
value
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
In millions of COP
Derivative financial instruments
Forwards
Foreign exchange contracts -  977,103  52,648  1,029,751  -  885,520  86,775  972,295 
Equity contracts -  1,719  2,212  3,931  -  89  1,278  1,367 
Total forwards -  978,822  54,860  1,033,682  -  885,609  88,053  973,662 
Swaps
Foreign exchange contracts -  1,051,342  57,106  1,108,448  -  1,264,593  67,838  1,332,431 
Interest rate contracts 95,384  162,034  606  258,024  102,701  160,721  27,646  291,068 
Total swaps 95,384  1,213,376  57,712  1,366,472  102,701  1,425,314  95,484  1,623,499 
Options
Foreign exchange contracts 833  115,161  -  115,994  421  82,061  -  82,482 
Total options 833  115,161  -  115,994  421  82,061  -  82,482 
Total derivative financial instruments 96,217  2,307,359  112,572  2,516,148  103,122  2,392,984  183,537  2,679,643 
Total 96,217  2,307,359  112,572  2,516,148  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 Bank’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 March 31, 2025 and December 31, 2024:
Assets
Type of instrument March 31, 2025 December 31, 2024
Fair value hierarchy Total fair value Fair value hierarchy Total fair value
Level 1 Level 2 Level 1 Level 1 Level 2 Level 1
In millions of COP
Debt instruments
Securities issued by the Colombian Government 151,074  -  -  151,074  156,209  -  -  156,209 
Securities issued or secured by government entities -  46,155  3,547,113  3,593,268  -  46,272  3,326,959  3,373,231 
Securities issued by other financial institutions 190,061  61,819  247,474  499,354  284,281  57,091  250,508  591,880 
Securities issued by foreign governments 373,934  221,939  -  595,873  412,579  227,076  -  639,655 
Corporate bonds 680,473  359,652  2,480,462  3,520,587  1,050,588  14,017  2,578,160  3,642,765 
Total – Debt instruments 1,395,542  689,565  6,275,049  8,360,156  1,903,657  344,456  6,155,627  8,403,740 
Loans and advances to customers, net -  -  267,030,126  267,030,126  -  -  269,345,583  269,345,583 
Total 1,395,542  689,565  273,305,175  275,390,282  1,903,657  344,456  275,501,210  277,749,323 
Liabilities
Type of instrument March 31, 2025 December 31, 2024
Fair value hierarchy Total fair value Fair value hierarchy Total fair value
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
In millions of COP
Deposits by customers -  63,856,316  212,276,332  276,132,648  -  60,894,992  218,568,020  279,463,012 
Interbank deposits -  -  634,414  634,414  -  -  716,493  716,493 
Repurchase agreements and other similar secured borrowing -  -  1,265,728  1,265,728  -  -  1,060,472  1,060,472 
Borrowings from other financial institutions -  -  11,899,337  11,899,337  -  -  15,689,532  15,689,532 
Debt instruments in issue 5,665,037  1,703,991  3,687,256  11,056,284  5,811,412  2,669,991  2,908,095  11,389,498 
Preferred shares -  -  359,634  359,634  -  -  407,174  407,174 
Total 5,665,037  65,560,307  230,122,701  301,348,045  5,811,412  63,564,983  239,349,786  308,726,181 


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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 and interest bearing. Subsequently, the cash flows were discounted using reference curves formed by the weighted average of the Bank’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 Bank’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 Bank 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 Bank and growth at a constant rate considering the Bank’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 Bank 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 instrument March 31, 2025 December 31, 2024
Fair value hierarchy Total fair value Fair value hierarchy Total fair value
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
In millions of COP
Machinery and equipment -  -  8,749  8,749  -  -  10,085  10,085 
Real estate for residential purposes -  -  99,264  99,264  -  -  133,863  133,863 
Real estate different from residential properties -  -  25,387  25,387  -  -  29,794  29,794 
Total -  -  133,400  133,400  -  -  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 March 31, 2025 and 2024:
As of March 31, 2025
Type of instrument Balance, January 1, 2025 Included in earnings OCI Purchases Settlement
Reclassifications(1)
 Prepaids Transfers in to level 3 Transfers out of level 3 Balance, March 31, 2025
In millions of COP
Assets
Debt instruments at fair value though profit or loss
Securities issued or secured by other financial entities 77,821  582  -  -  (1,728) -  (1,348) 4,803  -  80,130 
Corporate bonds 34,259  247  -  -  (15,625) -  -  -  (2,965) 15,916 
Total 112,080  829  -  -  (17,353) -  (1,348) 4,803  (2,965) 96,046 
Debt instruments at fair value through OCI
Securities issued by the Colombian Government 2,648,355  -  58,083  -  -  -  -  -  -  2,706,438 
Securities issued or secured by other financial entities 49,744  -  889  -  -  -  -  -  -  50,633 
Corporate bonds 577,439  -  13,152  -  -  -  -  -  (32,039) 558,552 
Total 3,275,538  -  72,124  -  -  -  -  -  (32,039) 3,315,623 
Derivative financial instruments
Foreign exchange contracts 795,358  (31,769) -  190,085  (395,436) (17,904) -  99,508  (164,830) 475,012 
Interest rate contracts 15,493  (1,987) -  7,468  (133) (36) -  2,867  (107) 23,565 
Equity contracts 51,347  -  -  45,888  (51,347) -  -  -  -  45,888 
Total 862,198  (33,756) -  243,441  (446,916) (17,940) -  102,375  (164,937) 544,465 
Equity securities
Equity securities 717,873  10,897  (11,940) 16,180  (1,655) -  -  67,668  -  799,023 
Total 717,873  10,897  (11,940) 16,180  (1,655) -  -  67,668  -  799,023 
Other financial instruments
Other financial instruments 34,385  (1,342) -  -  -  -  -  -  -  33,043 
Total 34,385  (1,342) -  -  -  -  -  -  -  33,043 
Investment in associates
P.A. Viva Malls 1,817,503  71,541  -  -  -  -  -  -  -  1,889,044 
P.A. Distrito Vera 13,325  443  -  -  (157) -  -  -  -  13,611 
Fideicomiso Locales Distrito Vera 56  (1) -  22  -  -  -  -  -  77 
Total 1,830,884  71,983  -  22  (157) -  -  -  -  1,902,732 
Investment properties
Investment properties 5,580,109  22,703  -  41,018  (35,793) -  -  -  -  5,608,037 
Total 5,580,109  22,703  -  41,018  (35,793) -  -  -  -  5,608,037 
Total Assets 12,413,067  71,314  60,184  300,661  (501,874) (17,940) (1,348) 174,846  (199,941) 12,298,969 
Liabilities
Derivative financial instruments
Foreign exchange contracts 154,613  (9,868) -  55,245  (69,369) (17,904) -  8,499  (11,462) 109,754 
Interest rate contracts 27,646  (13) -  -  (580) (36) -  112  (26,523) 606 
Equity contracts 1,278  -  -  2,212  (1,278) -  -  -  -  2,212 
Total 183,537  (9,881) -  57,457  (71,227) (17,940) -  8,611  (37,985) 112,572 
Total liabilities 183,537  (9,881) -  57,457  (71,227) (17,940) -  8,611  (37,985) 112,572 
(1)From derivative assets to derivative liabilities classified in level 3 and vice versa.

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As of March 31, 2024
Type of instrument
Balance, January 1, 2024
 Included in earnings OCI Purchases Settlement Reclassifications(1) Prepaids Transfers in to level 3 Transfers out of level 3 Balance, March 31, 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 (79) - 192 (3,664) - (1,807) - (5,567) 67,804
Corporate bonds 14,284 (328) - - - - - - - 13,956
Total 93,013 (407) - 192 (3,664) -  (1,807) - (5,567) 81,760
Debt instruments at fair value through OCI
Securities issued by the Colombian Government 2,664,295 - 69,240  -  - - - - - 2,733,535
Total 2,664,295  -  69,240  -  -  -  -  -  -  2,733,535 
Derivative financial instruments
Foreign exchange contracts 1,384,673 56,915 - 356,351 (816,780) (512) - 30,086 (46,289) 964,444
Interest rate contracts 15,621 (4,967) - 2,270 (876) (283) - 8 (85) 11,688
Equity contracts 2,863 - - 1,108 (2,863) - - - - 1,108
Total 1,403,157 51,948 - 359,729 (820,519) (795) - 30,094 (46,374) 977,240
Equity securities
Equity securities
 384,682 72  3,311 2,310 (1,181) - - - - 389,194
Total 384,682 72 3,311 2,310 (1,181) - - - - 389,194
Other financial instruments
Other financial instruments 38,319 147  - - - - - - - 38,466
Total 38,319 147 - - - - - - - 38,466
Investment in associates
P.A. Viva Malls 1,661,679 66,690 - - - - - - - 1,728,369
P.A. Distrito Vera 9,103 337  - 7,963 - - - - - 17,403
Total 1,670,782 67,027 - 7,963 - - - - - 1,745,772
Investment properties
Investment properties 4,709,911  7,819  -  68,927  (73,895) -  -  -  -  4,712,762 
Total 4,709,911  7,819  -  68,927  (73,895) -  -  -  -  4,712,762 
Total Assets 10,964,159 126,606 72,551 439,121 (899,259) (795) (1,807) 30,094 (51,941) 10,678,729
Liabilities
Derivative financial instruments
Foreign exchange contracts 170,798 3,585 - 32,496 (57,815) (512) - 14,165 (2,221) 160,496
Interest rate contracts 11,078 (1,279) - - (156) (283) - 228 (5,675) 3,913
Equity contracts 1,852 - - 140 (1,852) - - - - 140
Total 183,728 2,306 - 32,636 (59,823) (795) - 14,393 (7,896) 164,549
Total liabilities 183,728 2,306 - 32,636 (59,823) (795) - 14,393 (7,896) 164,549
(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 March 31, 2025 and 2024:
As of March 31, 2025 and 2024, net transfers in the Bank for COP 126,952 and COP 38,478, respectively, from level 3 to level 2 of derivatives foreign exchange contracts and interest rate contracts, it was presented due to the transfer of the credit risk of the counterparty to the own credit risk. As of March 31, 2025 and 2024. net transfers for COP 93,764 and COP 15,701, 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 Bank to the credit risk of the counterparty.

As of March 31, 2025, there are corporate bonds of debt instruments at fair value through OCI for COP 558,552.
As of March 31, 2025 and 2024, unrealized gains and losses on debt instruments were COP 829 and COP (407); equity securities COP 10,897 and COP 72, respectively.

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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 March 31, 2025 and December 31, 2024:
Type of instrument March 31, 2025 December 31, 2024
Transfers level 1 to level 2 Transfers level 2 to level 1 Transfers level 1 to level 2 Transfers level 2 to level 1
In millions of COP
Debt instruments at fair value though profit or loss
Securities issued by the colombian government 34,987  35,230  202,779  - 
Securities issued or secured by foreign government 18,558  144,169  26,866  929 
Total 53,545  179,399  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 -  -  63,827  - 
Total -  -  63,827  - 
As of March 31, 2025, the Bank 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 Bank’s material categories of level 3 financial assets and liabilities and the sensitivity of these fair values to reasonably possible alternative assumptions.
As of March 31, 2025
Financial instrument Fair value
Valuation technique
Significant unobservable input
Range of inputs
Weighted average
Sensitivity 100 basis point increase
Sensitivity 100 basis point decrease
In millions of COP
Debt instruments
Securities issued by other financial institutions
Yield 0.14% to 10.46% 3.63  % 65,478  69,104 
TIPS 67,257  Discounted cash flow Prepayment Speed n/a n/a 69,028  n/a
Prepayment Speed n/a n/a 64,512  n/a
Other bonds 63,506  Discounted cash flow Interest rate 0.07% to 1.12% 0.93  % 62,128  65,148 
Total securities issued by other financial institutions 130,763 
Securities issued by the Colombian Government
Bonds by government entities 2,706,438  Discounted cash flow Yield 1.18% to 1.18% 1.18  % 2,703,835  2,712,049 
Corporate bonds
Corporate bonds 574,468  Discounted cash flow Yield 0.08% to 5.05% 1.51  % 533,249  602,547 
Total debt instruments 3,411,669 
Equity securities
Equity securities 799,023  Price-based Price n/a n/a n/a n/a
Other financial instruments
Other financial instruments 33,043  Internal valuation methodology Internal valuation methodology n/a n/a n/a n/a
Derivative financial instruments
Forward 282,632  Discounted cash flow Credit spread / Yield 0.00% to 30.76% 5.23  % 282,178  283,088 
Swaps 97,926  Discounted cash flow Credit spread 0.00% to 64.53% 5.75  % 84,320  114,313 
Options 51,335  Discounted cash flow Credit spread 0.12% to 34.23% 0.56  % 50,948  51,501 
Total derivative financial instruments 431,893 
Investment in associates
P.A. Viva Malls 1,889,044  Price-based Price n/a n/a n/a n/a
P.A. Distrito Vera 13,611  Price-based Price n/a n/a n/a n/a
Fideicomiso Locales Distrito Vera 77  Price-based Price n/a n/a n/a n/a
Total investment in associates 1,902,732 

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As of December 31, 2024
Financial instrument Fair value
Valuation technique
Significant unobservable input
Range of inputs
Weighted average
Sensitivity 100 basis point increase
Sensitivity 100 basis point decrease
In millions of COP
Debt instruments
Securities issued by other financial institutions
Yield 0.14% to 10.66% 3.61  % 61,474  65,164 
TIPS 63,280  Discounted cash flow 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 0.00% to 56.14% 4.03  % 166,650  204,677 
Options 66,010  Discounted cash flow Credit spread 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 Bank, the significant unobservable inputs and the respective sensivity:
Methodology Valuation technique Significant unobservable input Description of sensitivity
Sales Comparison Approach – SCA 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 first quarter for 2025 are:
•Direct capitalization: initial rate 8.21%.
•Discounted cash flow: discount rate: 12.40%, terminal rate: 8.32%.
The same weighted rates for the last quarter of 2024 were:
•Direct capitalization: initial rate 8.13%.
•Discounted cash flow: discount rate: 12.27%, terminal rate: 8.29%.
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 first quarter of 2025 are 0.87% 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. 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 Used to estimate the fair value of the property by taking future net cash flows and discounting them at the capitalization rate. Direct capitalization Discounted cash flows
Cost approach 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 20. SUBSEQUENT EVENTS
Approval of Consolidated Financial Statements
These Condensed Consolidated Interim Financial Statements were approved by Chief Executive Financial for publication at May 05, 2025. The Financial Statements have been reviewed, not audited.
On April 23, 2025, at an Extraordinary General Shareholders' Meeting of Bancolombia were approved by the required majority, the corporate structure changes of Bancolombia and its subsidiaries. These changes included the creation of a parent company called Grupo Cibest S.A. and the completion of a series of corporate transactions to achieve this goal as announced to the market on October 29, 2024. See Note 1. Reporting Entity.

In addition, the General Shareholders' Meeting of Bancolombia approved the amendment to the Corporate Bylaws and the adjustment of the value of Bancolombia's authorized capital in accordance with the increase in the par value of the share, in order to adapt to the new Corporate Structure. Likewise, the payment of an extraordinary dividend totaling COP 600,180 was approved, equivalent to COP 624 per share, payable in one installment on April 29, 2025.
RISK MANAGEMENT

The first months of 2025 have been marked by an acceleration in economic growth compared to what was observed last year. However, uncertainty remains high at the local level due to the stagnation of inflation over the past four months, which has limited the room for monetary policy interest rate cuts. This is in line with the numerous fiscal challenges faced by the Government, stemming from ambitious spending expectations and constrained tax revenues. At the international level, U.S. trade policy has exacerbated the risks of slower global growth.

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Credit risk

Credit risk is the risk of an economic loss to the Bank 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 is the single largest risk for the Bank's business; the Bank manages its exposure to credit risk.
The information below contains the maximum exposure to credit risk for the periods ending March 31, 2025 and December 2024:
March 31, 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 245,451,655  16,560,544  16,510,806  278,523,005 
Commercial 138,419,039  5,247,629  9,516,428  153,183,096 
Consumer 46,007,502  4,952,246  3,599,146  54,558,894 
Mortgage 37,222,284  2,895,647  1,846,605  41,964,536 
Small Business Loans 1,222,582  98,358  77,251  1,398,191 
Financial Leases 22,580,248  3,366,664  1,471,376  27,418,288 
Off-Balance Sheet Exposures 45,057,775  249,872  249,859  45,557,506 
Financial Guarantees 9,160,004  11,755  188,666  9,360,425 
Loan Commitments 35,897,771  238,117  61,193  36,197,081 
Loss Allowance (2,239,443) (2,822,667) (10,772,858) (15,834,968)
Total 288,269,987  13,987,749  5,987,807  308,245,543 
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 43,604,372  223,317  256,249  44,083,938 
Financial Guarantees 9,926,719  17,800  199,782  10,144,301 
Loan Commitments 33,677,653  205,517  56,467  33,939,637 
Loss Allowance (2,331,035) (2,752,141) (11,397,984) (16,481,160)
Total 286,545,634  14,141,467  6,369,585  307,056,686 

Maximum exposure to credit risk of the loans and advances refers to the carrying amount at the end of the period. It does not take into account any collateral received or any other credit risk mitigants.

Maximum exposure to credit risk of financial guarantees and loan commitments corresponds to the total amount guaranteed at the end of the period. It does not take into account any collateral received or any other credit risk mitigants.
a.Credit Risk Management - Loans and Advances

The first quarter of 2025, moderate economic growth was observed in Colombia and Central America. The positive dynamics in sectors such as manufacturing, construction, and commerce were driven by slowing inflation and greater stability in interest rates. However, the uncertainty caused by volatility in global markets, a consequence of the trade and tariff policies of the United States, affected consumption and investment decisions, impacting economic dynamics.

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 applying proactive strategies at various stages of the credit cycle.

Risk management for different types of credit operations carried out by the Bank 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.

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Furthermore, the Management has developed process manuals and methodologies that specify the policies and procedures for different products and segments served by the Bank, reflecting the strategy approved by the Board of Directors for credit risk monitoring and control

Country Risk

At the end of March 2025, there were no alerts on any investments, nor were any adjustments made for deterioration in investments that could affect or deteriorate the Bank's financial strength. The variation in the balance of investments is due to reassessment factor and other concepts in relation to the ultimate value of the investment.
b.Credit Quality Analysis - Loans and Financial Leases

The Bank´s loan portfolio as of March 2025, compared to December 2024, showed a slight decrease of 0.3% in the consolidated portfolio balance in pesos. This was mainly explained by the revaluation of the peso against the dollar, which impacts on the portfolio's value expressed in that currency, and a lower disbursement value by the Group, particularly in the Commercial portfolio, corporate segment.

The 30-day past due loan ratio (consolidated) at stood at 5.05% as of March 2025, showing an increase compared to 5.20% in December 2024. The level of the bank´s non-performing loans is mainly impacted by the improvement in the quality of the retail loan portfolio, particularly in consumer products, along with a decrease in the indicator for the commercial portfolio in the Corporate and SME segments. The management of all portfolios continues across the different stages of the credit cycle to anticipate the materialization of risks, designing containment and recovery strategies for the loan portfolio.
Special Customer Administration (AEC)

The Bank 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 Bank 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 March 31, 2025 and December 2024 is shown below:
March 31, 2025
Watch List
Million COP
Risk Level Amount % Allowance
Level 1 – Low Risk 14,990,558  0.84% 126,470 
Level 2 – Medium Risk 4,991,261  7.21% 359,938 
Level 3 – High Risk 4,116,424  49.29% 2,029,075 
Level 4 – High Risk 5,813,881  60.86% 3,538,118 
Total 29,912,124  20.24% 6,053,601 
December 31, 2024
Watch List
Million 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 

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Risk Concentration – Loans and Advances

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 in March 2025 and December 2024:
March 31, 2025
Economic sector Loans and advances
Local Foreign Total
In millions of COP
Agriculture 5,493,243  2,703,327  8,196,570 
Petroleum and Mining Products 2,248,034  635,275  2,883,309 
Food, Beverages and Tobacco 10,601,437  2,105,299  12,706,736 
Chemical Production 4,867,548  413,519  5,281,067 
Government 10,328,222  559,404  10,887,626 
Construction 14,418,341  9,273,138  23,691,479 
Commerce and Tourism 24,398,063  7,010,102  31,408,165 
Transport and Communications 12,151,391  553,852  12,705,243 
Public Services 14,059,561  3,318,376  17,377,937 
Consumer Services 61,356,649  31,700,267  93,056,916 
Commercial Services 32,313,904  13,381,252  45,695,156 
Other Industries and Manufactured Products 9,616,069  5,016,732  14,632,801 
Total 201,852,462  76,670,543  278,523,005 
December 31, 2024
Economic sector Loans and advances
Local Foreign Total
In millions of COP
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 

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Concentration of loan by maturity: 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 for the periods ending in March 2025 and December 2024:
March 31, 2025
Maturity Less Than 1 Year Between 1 and 5 Years Between 5 and 15 Years Greater Than 15 Years Total
In millions of COP
Commercial 49,198,149 59,641,131 43,745,960 597,856 153,183,096
Corporate 28,273,842 32,027,861 25,079,506 302,064 85,683,273
SME 5,030,028 8,284,479 1,725,472 93,319 15,133,298
Others 15,894,279 19,328,791 16,940,982 202,473 52,366,525
Consumer 1,266,542 33,572,498 18,967,409 752,445 54,558,894
Credit card 210,302 9,327,178 2,132,237 0 11,669,717
Vehicle 90,922 3,192,514 2,168,636 418 5,452,490
Order of payment 50,314 2,269,615 7,234,472 524,893 10,079,294
Others 915,004 18,783,191 7,432,064 227,134 27,357,393
Mortgage 77,146 1,077,419 10,578,019 30,231,952 41,964,536
VIS 15,877 287,725 2,654,353 13,456,810 16,414,765
Non-VIS 61,269 789,694 7,923,666 16,775,142 25,549,771
Finanacial Leases 2,057,484 8,232,022 13,336,554 3,792,228 27,418,288
Small business loans 174,365 1,016,082 178,337 29,407 1,398,191
Total gross loans and financial leases 52,773,686 103,539,152 86,806,279 35,403,888 278,523,005
December 31, 2024
Maturity Less Than 1 Year Between 1 and 5 Years Between 5 and 15 Years Greater Than 15 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  0  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 
Concentration by past due days: The following table shows the loans and financial leases according to past due days. Loans or financial leases are considered past due if it is more than one month overdue (i.e. 31 days):

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March 31, 2025
Past-due
Period 0 - 30 Days 31 - 90 Days 91 - 120 Days 121 - 360 Days More Than 360 Days Total
In millions of COP
Commercial 147,370,965  607,247  230,432  1,422,230  3,552,222  153,183,096 
Consumer 50,564,776  1,635,435  455,864  1,674,851  227,968  54,558,894 
Mortgage 38,798,507  1,345,190  255,417  619,328  946,094  41,964,536 
Financial Leases 26,442,894  280,854  50,998  271,135  372,407  27,418,288 
Small Business Loan 1,284,139  46,104  8,267  37,899  21,782  1,398,191 
Total 264,461,281  3,914,830  1,000,978  4,025,443  5,120,473  278,523,005 
December 31, 2024
Past-due
Period 0 - 30 Days 31 - 90 Days 91 - 120 Days 121 - 360 Days More Than 360 Days Total
In millions of COP
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 
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 Bank maintains the control and continuous monitoring of the assigned credit risk limits, as well as the consumption thereof. Additionally, the Bank 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 - Other 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 Bank.

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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.
•Credit Quality Analysis of the Bank
Debt Instruments Equity Other financial instruments(1) Derivatives(2)
mar-25 dic-24 mar-25 dic-24 mar-25 dic-24 mar-25 dic-24
In Millions of COP
Maximum Exposure to Credit Risk
Low Risk 28,006,024  29,130,380  430,295  363,198  4,926  1,712  532,694  834,821 
Medium Risk 4,949,394  4,873,025  84,619  57,119  -  16,479  8,904  1,154 
Hihg Risk 2,331,122  2,580,107  4,855  677  15,542  2966  14,505  7,085 
Without Rating -  -  603,522  590,316  12,575  13,228  11,229  86437 
Total 35,286,540  36,583,512  1,123,291  1,011,310  33,043  34,385  567,332  929,497 
1)Corresponds to SAFE "Simple Agreement for Future Equity", in Inversiones CFNS S.A.S., Sistema de Inversiones y Negocios, S.A. and Banagrícola S.A (For 2024). For the year 2023 were revealed as debt securities and equity.
(2)For derivatives transactions counterparty risk is disclosed as long as the valuation is positive.
•Risk exposure by credit rating
Other financial instruments
March 2025 December 2024
In Millions of COP
Maximum Exposure to Credit Risk
Sovereign Risk 13,148,013  14,487,622 
AAA 10,644,149  10,113,581 
AA+ 4,290,623  4,714,501 
AA 781,183  770,266 
AA- 129,415  68,124 
A+ 758,712  906,847 
A 446,935  465,978 
A- 274,053  352,619 
BBB+ 474,873  587,802 
BBB 191,556  221,092 
BBB- 256,104  219,676 
Other 4,987,263  4,960,616 
No rated 627,327  689,981 
Total 37,010,206  38,558,705 

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•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: 98.6% of the credit exposure does not present incidences of material default. The remaining percentage corresponds to default events at the end of the period.
•Maximum exposure level to the credit risk given:
Maximum Exposure Collateral Net Exposure
mar-25 dic-24 mar-25 dic-24 mar-25 dic-24
In Millions of COP
Maximum Exposure to Credit Risk
Debt Instruments 35,286,540  36,583,512  (2,067,304,000,000) (1,669,011) 33,219,236  34,914,501 
Derivatives 567,332  929,498  214,165  589,098  353,167  340,400 
Equity 1,123,291  1,011,310  —  —  1,123,291,000,000  1,011,310 
Other financial instruments 33,043  34,385  —  —  33,043,000,000  34,385 
Total 37,010,206  38,558,705  (2,281,469) (2,258,109) 34,728,737  36,300,596 
Note: 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 March 2025 was COP 214,165. 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 Bank, 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 ClearStream. This company acts on behalf of Bancolombia for making international margin calls and providing a better management of the collateral.
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.
___________________
1A 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).
Credit risk concentration - other financial instruments
Currently, the Bank's positions do not exceed the concentration limit.
MARKET RISK

Bancolombia’s Bank 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 Circular”, issued by the Financial Superintendence of Colombia.

The VaR methodology established by “Chapter XXXI of the Basic Accounting Circular” is based on the model recommended by the Amendment to the Capital Accord to Incorporate Market Risks of Basel Committee, which focuses on the treasury book and excludes 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.

Bancolombia 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 Bank´s Market Risk Management have been keeping in accordance with disclose of December 31, 2024.

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The total market risk VaR had a reduction of 4.3%, decreasing from COP 1,697,566 on December 31, 2024 to COP 1,624,488 in March 31, 2025, this behavior is mainly explained by a lower exposure to the US dollar in Bancolombia's book. This effect was offset by an increase in risk concentrated in stock price factors and collective investment funds due to the increase in the position in stocks in Valores Bancolombia and valuations of the Colombia Inmobiliario Fund.
Factor March 31, 2025
In millions of Colombian pesos
End of Period Average Maximum
June, 2025		 Minimum
February, 2025
Interest rate 540,049 500,973 499,712 463,158
Exchange rate 672,648 721,428 751,796 739,840
Stock price 377,488 371,670 367,615 369,906
Collective investment funds 34,303 35,710 35,781 37,045
VaR Total 1,624,488 1,629,781 1,654,904 1,609,949
Factor December 31, 2024
In millions of Colombian pesos
End of Period Average Maximum
November, 2024		 Minimum
January, 2024
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
VaR Total 1,697,566 1,439,112 1,734,164 1,182,360

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 Bank.
Non-trading instruments market risk measurement
Interest Risk Exposure (Banking Book)
The Bancolombia Group performs a sensitivity analysis of interest rate risk, estimating the impact on the net interest margin of each position in the banking book using a repricing model and assuming a positive parallel change of 100 basis points (bps) in the rates.
Table 1 provides information about the interest rate risk sensitivity of the Bancolombia Group's banking book positions.
Table 1. Sensitivity to Interest Rate Risk of the Banking Book

The chart below provides information about interest rate risk sensitivity in local currency (COP) for the group, in the periods ending at March 31, 2025 and December 31, 2024:
March 31, 2025 Diciembre 31, 2024
In millions of COP
Assets sensitivity 100 bps 1,310,433  1,262,776 
Liabilities sensitivity 100 bps 935,690  915,528 
Net interest income sensitivity 100 bps 374,743  347,248 

The chart below provides information about interest rate risk sensitivity in foreign currency (US dollars) for the group in the periods ending at March 31, 2025 and December 31, 2024:
March 31, 2025 Diciembre 31, 2024
In thousand of USD
Assets sensitivity 100 bps 78,667  76,219 
Liabilities sensitivity 100 bps 83,730  83,051 
Net interest income sensitivity 100 bps (5,063) (6,832)


Table of Contents
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 Bank´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 Bank´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 March 31, 2025, the net sensitivity of the banking book in legal currency to positive and parallel variations in interest rates of 100 basis points was COP 374,743. The variation in the sensitivity of the net interest margin between December 2024 and March 2025 is presented by the increase in loans, compensated by the increment in time deposit and account hedges.

On the other hand, the sensitivity to the net interest margin in foreign currency was - USD 5, assuming the same parallel displacement of 100 basis points and presented an increase between December 31, 2024 and March 31, 2025, due to the increase in Banistmo’s floating Loans.


LIQUIDITY RISK

During the first quarter of the year there has been a downward trend in the liquidity levels of the Bancolombia Group, mainly explained by the Bank and Banitsmo, given the outflows in deposit accounts and loans disbursements and the cancellations of financial obligations respectively. Nevertheless, liquidity levels complied with the established limits and comfortably covered the liquidity requirements of the group's companies, complying with both internal and regulatory indicators. Likewise, the alerts established for liquidity monitoring and control did not present any non-compliance where any risk could materialize.

Liquidity risk exposure:

In order to estimate liquidity risk, the Bank measures a liquidity coverage ratio to ensure holding liquid assets sufficient to cover potential net cash outflows over 30 days. This indicator allows the Bank to meet liquidity coverage for the next month. The liquidity coverage ratio is presented as follows:
Liquidity Coverage Ratio March 31, 2025 December 31, 2024
In millions of COP
Net cash outflows into 30 days 21,615,610 23,887,074
Liquid Assets 53,406,262 59,617,840
Liquidity coverage ratio* 247.07% 249.58%
The coverage indicator decreased from 249.58% in December 2024 to 247.07% in March 2025, mainly explained by the reduction in the level of liquid assets.
Liquid Assets

One of the main guidelines of the Bank is to maintain a solid liquidity position, therefore, the ALCO Committee, has established a minimum level of liquid assets, based on the funding needs of each subsidiary, to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Bank’s reputation.

The following table shows the liquid assets held by the Group:
Liquid Assets(1) March 31, 2025 December 31, 2024
In millions of COP
High quality liquid assets
Cash 22,226,896  27,931,834 
High quality liquid securities(2) 23,231,087  24,862,860 
Other Liquid Assets
Other securities(3) 7,948,279  6,823,145 
Total Liquid Assets 53,406,262  59,617,839 
(1)Liquid assets: Liquid assets will be considered those that are easily realized and are part of the entity's portfolio or those that have been received as collateral in active operations in the money market and have not been subsequently used in passive operations in the money 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 a stock exchange in Colombia that are eligible to be subject to repo or repo operations, and negotiable investments available for sale. sale of fixed income securities.
(2)High quality securities are considered to be those available and the shares that are eligible to be subject to repo or repo operations, additionally for those entities that are in the group of OMAS Placement Agents (ACO) those liquid assets that receive the Banco de la República for its monetary expansion and contraction operations described in section 3.1.1 of the External Regulatory Circular DODM-142 of the Banco de la República or otherwise (if it is not ACO) only those securities that are mandatory listing in the market maker program. This applies to all securities that are accepted as collateral by the central banks of the geographies where the Bancolombia Group is located. The characteristic of high liquidity is possessed by the available, in all cases, and those liquid assets that central banks use for their monetary expansion and contraction operations. Liquid assets are adjusted for market liquidity and currency risk.
(3)Other liquid assets: liquid assets that do not meet the quality characteristic are those included in this item.

Table of Contents
Interest Rate Benchmark Reform
As part of the LIBOR benchmark reform that is being implemented since 2017 by the Financial Conduct Authority of the UK, in March of the present year, it was announced that the publication of LIBOR on a representative basis will cease for the one-week and two-month USD LIBOR settings immediately after December 31, 2021, and the remaining USD LIBOR settings immediately after June 30, 2023.
Grupo Bancolombia has taken the necessary measures to identify and implement the action plans required to address the discontinuation process of the LIBOR rate, among them, the approval of SOFR rate as the replacement rate of LIBOR in USD, which was approved by the Asset and Liability Management (ALM) Committee and the Risk Committee of the Board of Directors, to commenced with the development of products indexed to the new reference rate (SOFR).
The following tables provide a breakdown by currency and nature of financial instruments exposed to the LIBOR rate for the periods ending in March 2025 and December 2024:
March 31, 2025
millones COP
USD LIBOR¹
Assets
Loans 1,797
Bonds -
Derivatives -
Total Assets 1,797
1Cessation date: USD LIBOR June 30, 2023. Portfolio balances and market value of derivative transactions outstanding at March 31, 2025.
December 31, 2024
millones COP
USD LIBOR¹
Assets
Loans 1,890
Bonds -
Derivatives -
Total Assets 1,890
1Cessation date: USD LIBOR June 30, 2023. Portfolio balances and market value of outstanding derivative transactions as of December 31, 2024. This corresponds to transactions entered into before June 30, 2023, which will mature according to the agreed contractual terms.
Risk
Any failure by market participants, such as the Bank, and regulators to successfully introduce benchmark rates to replace LIBOR and implement effective transitional arrangements to address the discontinuation of LIBOR could result in disruption of the financial and capital markets. In addition, the transition process to an alternative reference rate could impact the Bank’s business, financial condition or result of operations, as a result of:
•An adverse impact in pricing, liquidity, value, return and trading for a broad array of financial products, loans and derivatives that are included in the Bank’s financial assets and liabilities.
•Extensive changes to internal processes and documentation that contain references to LIBOR or use formulas that depend on LIBOR.
•Disputes, litigation or other actions with counterparties regarding the interpretation and enforceability of provisions in LIBOR -based products such as fallback language or other related provisions.
•The transition and development of appropriate systems and models to effectively transition the Bank’s risk management processes from LIBOR -based products to those based on one or more alternative reference rates in a timely manner; and
•An increase in prepayments of LIBOR -linked loans by the Bank’s clients.
From January 2022, products indexed to the SOFR rate began to be offered, additionally it was defined not to carry new operations indexed to the LIBOR rate. In turn, as an organization, we will continue, during 2025, on the transition process of operations that are indexed to LIBOR.
EX-2 3 libroingls-cibx20250330xex.htm EX-2 Document


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SEPARATE INTERIM FINANCIAL STATEMENTS
FOR THE THREE-MONTHS PERIOD ENDED MARCH 31, 2025 AND 2024
1


CONDENSED SEPARATE INTERIM STATEMENT OF FINANCIAL POSITION
BANCOLOMBIA S.A.
As of March 31, 2025 and December 31, 2024
(Stated in millions of Colombian pesos)
Note March 31, 2025 December 31, 2024
ASSETS
Cash and cash equivalents 3 14,853,705 19,025,227
Financial assets investments, net 4.1 20,735,264 21,756,044
Derivative financial instruments 4.2 2,520,831 2,924,434
Financial assets investments, net and derivative financial instruments 23,256,095 24,680,478
Loans and advances to customers 196,474,890 191,927,705
Allowance for loans, advances and lease losses (13,422,797) (13,829,166)
Loans and advances to customers, net 5 183,052,093 178,098,539
Assets held for sale and inventories, net 303,276 392,746
Investment in subsidiaries 6 27,473,384 28,718,183
Investment in associates and joint ventures 196,123 205,312
Premises and equipment, net 7 4,738,765 4,866,583
Investment properties 846,853 846,853
Right of use asset under lease agreements 1,277,255 1,296,314
Intangible assets, net 363,970 370,461
Other assets, net 3,298,584 4,084,045
TOTAL ASSETS   259,660,103 262,584,741
LIABILITIES AND EQUITY
LIABILITIES  
Deposits by customers 9 185,175,224 185,801,073
Interbank deposits and repurchase agreements and other similar secured borrowing 10 1,021,595 628,483
Derivative financial instruments 4.2 2,509,980 2,667,439
Borrowings from other financial institutions 11 8,960,750 10,557,864
Debt instruments in issue 7,538,788 7,801,008
Lease contracts liabilities, net 1,372,650 1,391,215
Preferred shares 541,340 584,204
Current tax 551,175 1,069
Deferred tax, net 8.4 1,559,617 1,387,838
Employee benefit plans 720,381 711,067
Other liabilities 12 10,355,783 8,782,160
TOTAL LIABILITIES   220,307,283 220,313,420
EQUITY  
Share capital 480,914 480,914
Additional paid-in-capital 4,837,497 4,837,497
Appropriated reserves 14 24,792,564 22,898,182
Retained earnings 1,739,058 5,544,752
Accumulated other comprehensive income, net of tax 7,502,787 8,509,976
TOTAL EQUITY   39,352,820 42,271,321
TOTAL LIABILITIES AND EQUITY   259,660,103 262,584,741
The accompanying notes form an integral part of these separate financial statements.
1


SEPARATE INTERIM STATEMENT OF INCOME
BANCOLOMBIA S.A.
For the three-month periods ended March 31, 2025 and 2024
(Stated in millions of Colombian pesos)

Note March 31, 2025 March 31, 2024
Interest on loans and financial leases
Commercial 2,798,122  3,381,437 
Consumer 1,575,972  1,844,405 
Small business loans 39,040  31,276 
Mortgage 829,586  763,447 
Financial leases 769,061  908,773 
Total interest income on loans and financial leases 6,011,781  6,929,338 
Interest income on overnight and market funds 8,882  5,249 
Interest and valuation on financial instruments 15.1 360,734  470,842 
Other interest income 35,848  64,808 
Total interest and valuation on financial instruments 6,417,245  7,470,237 
Interest expenses 15.2 (2,553,803) (3,224,477)
Net interest margin and valuation on financial instruments before impairment on loans and financial leases, off balance sheet credit instruments and other financial instruments 3,863,442  4,245,760 
Credit impairment charges on loans, advances and financial leases, net 5 (760,032) (1,515,065)
Credit (impairment) recovery for other financial instruments (10,974) (12,970)
Total credit impairment charges, net (771,006) (1,528,035)
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 3,092,436  2,717,725 
Fees and commissions income 15.3.1 1,432,659  1,321,780 
Fees and commissions expenses 15.3.2 (776,618) (640,935)
Total fees and commissions, net 656,041  680,845 
Other operating income, net 15.4 518,544  357,597 
Dividends and other net income from equity interests 15.5 551,519  570,764 
Total income, net 4,818,540  4,326,931 
Operating expenses
Salaries and employee benefits 16.1 (1,026,064) (898,406)
Other administrative and general expenses 16.2 (882,095) (750,758)
Taxes other than income tax 16.2 (289,377) (319,812)
Impairment, depreciation and amortization 16.3 (235,915) (231,758)
Total operating expenses (2,433,451) (2,200,734)
Profit before income tax 2,385,089  2,126,197 
Income tax 8 (600,499) (532,303)
Net income 1,784,590  1,593,894 
The accompanying notes form an integral part of these separate interim financial statements.
1


CONDENSED SEPARATE INTERIM STATEMENT OF COMPREHENSIVE INCOME
BANCOLOMBIA S.A.
For the three-month periods ended March 31, 2025 and 2024
(Stated in millions of Colombian pesos)
Note March 31, 2025 March 31, 2024
Net income 1,784,590 1,593,894
Other comprehensive income/(loss) that will not be reclassified to net income
Revaluation gain related to defined benefit liability -  - 
Income tax 8.3 26  6 
Net of tax amount 26  6 
Other comprehensive income/(loss) that may be reclassified to net income
Net loss on valuation of financial instruments 4.1 (5,231) (4,407)
Income tax 8.3 3,185  1,432 
Net of tax amount (2,046) (2,975)
Surplus from equity method
Unrealized gain/(loss) on investments in subsidiaries using equity method 6 (1,126,031) 66,075 
Gain/(loss) on valuation of investments in associates and joint ventures 98  43 
Net of tax amount (1,125,933) 66,118 
Effects of hedge accounting application
(Loss) gain on hedge of net investment in a foreign operation 4.3 192,264  (38,075)
Income tax 8.3 (71,154) 16,784 
Net of tax amount (2)
 121,110  (21,291)
Unrealized gain on cash flow hedges (369) - 
Reclassification to profit or loss 307  - 
Income tax 8.3 25  - 
Net of tax amount (37) - 
Total other comprehensive income that may be reclassified to net income (1,006,906) 41,852 
Total other comprehensive income, net of tax (1,006,880) 41,858 
Total comprehensive income 777,710  1,635,752 
The accompanying notes form an integral part of these separate financial statements.
(1)The effect as of March 31, 2025 corresponds to debt securities (TDS and Bonds) for COP (7,435), and valuation of financial instruments of equity investments COP 2,204. The effect as of March 31, 2024, corresponds to debt securities COP (4,724), the realization of equity investments for COP (1,155) and valuation of financial instruments of equity investments COP1,472.
(2)Corresponds to variation in the principal of bonds issued as a hedge, in addition to a 9.10% devaluation of the Colombian peso against the US dollar.
1


CONDENSED SEPARATE INTERIM STATEMENT OF CHANGES IN EQUITY
BANCOLOMBIA S.A.
For the three-month periods ended March 31, 2025 and 2024
(Stated in millions of Colombian pesos, except per share amounts stated in units of pesos)
Accumulated other comprehensive income
Note Share
capital		 Additional
paid in capital		 Appropriated reserves Financial instruments Adjustments on first-time application of IFRS evaluation of assets Employee benefits Equity method surplus Cash flow hedges Total other comprehensive income, net Retained earnings Total equity
Balance as of January 1, 2025 480,914 4,837,497 22,898,182 153,529 2,546,409 2,137 (11,077) 5,818,849  129  8,509,976 5,544,752 42,271,321
To pay a dividend corresponding to 509,704,584 common shares and 452,122,416 shares with preferred dividend and without voting rights, subscribed and paid as of December 31, 2024, at the rate of COP 3,900 per share, payable as follows: COP 3,900 per share and quarter, on the following dates: April 1, 2025. - - - - - - - - - - (3,693,424) (3,693,424)
Reserve for equity strengthening and future growth. - - 1,860,245 - - - - - - - (1,860,245) -
Reserve for social benefit projects and donations. - - 34,000 - - - - - - - (34,000) -
Reclassification of unclaimed dividends in accordance with Article 85 of the Bank's bylaws to reserves. - - 137 - - - - - - - - 137
Realization of retained earnings. - - - - (309) - - - - (309) 309 -
Equity method from participation in subsidiaries, associates and joint ventures. - - - - - - - - - - (2,924) (2,924)
Net income - - - - - - - - - - 1,784,590 1,784,590
Other comprehensive income 8.3 - - - (2,046) (2) - - 26 (1,004,823) (37) (1,006,880) - (1,006,880)
Equity as of March 31, 2025 480,914 4,837,497 24,792,564 151,483 2,546,100 2,137 (11,051) 4,814,026 92 7,502,787 1,739,058 39,352,820
The accompanying notes form an integral part of these separate financial statements.
(1)The balance as of March 31, 2025 includes recognition of the equity method on investments in subsidiaries for COP 8,828,037, equity method of investments in associates for COP (2,313), hedging of foreign investments for COP 4,954,446 and deferred tax for COP 942,748
(2)The balance as of March 31, 2025 includes OCI for debt securities (TDS and Bonds) for COP (7,435), valuation of financial instruments of equity investments for COP 2,204 and deferred tax for COP 3,185.

1


CONDENSED SEPARATE INTERIM STATEMENT OF CHANGES IN EQUITY
BANCOLOMBIA S.A.
For the three-month periods ended March 31, 2025 and 2024
(Stated in millions of Colombian pesos, except per share amounts stated in units of pesos)
Accumulated other comprehensive income
Note Share
capital
 Additional
paid in capital
 Appropriated reserves Financial instruments Adjustments on first-time application of IFRS Evaluation of assets Employee benefits
Equity method surplus (1)
 Total other comprehensive income, net Retained earnings Total equity
Balance as of January 1, 2024 480,914 4,837,497 20,292,454 173,289 2,555,858 2,137 (15,765) 2,819,626  5,535,145 5,935,658 37,081,668
To pay a dividend corresponding to 509,704,584 common shares and 452,122,416 shares with preferred dividend and without voting rights, subscribed and paid as of December 31, 2023, at the rate of COP 3,536 per share, payable as follows: COP 884 per share and quarter, on the following dates: April 1, July 2, July 2, October 1, 2024 and January 2, 2025. - - - - - - - - - (3,343,319) (3,343,319)
Reserve for equity strengthening and future growth. - - 2,605,222 - - - - - - (2,605,222) -
Reserve for social benefit projects and donations. - - 33,000 - - - - - - (33,000) -
Reclassification of unclaimed dividends in accordance with Article 85 of the Bank's bylaws to reserves. - - 130 - - - - - - - 130
Realization of retained earnings. - - - - (551) - - - (551) 551 -
Equity method from participation in subsidiaries, associates and joint ventures. - - - - - - - - - (16,782) (16,782)
Net income - - - - - - - - - 1,593,894 1,593,894
Other comprehensive income 8.3 - - - (2,975) (2) - - 26 44,827 41,858 - 41,858
Equity as of March 31, 2024 480,914 4,837,497 22,930,806 170,314 2,555,307 2,137 (15,759) 2,864,453 5,576,452 1,531,780 35,357,449
The accompanying notes form an integral part of these separate financial statements.

(1)The balance as of March 31, 2024, includes recognition of subsidiary investments of COP 6,585,460, equity method investments in associates of COP (2,180), hedges of foreign investments of COP (4,441,857), and deferred tax of COP 723,030.

(2)The movement in financial instruments as of March 31, 2024, includes OCI for debt securities of COP (4,724), realization of equity investments of COP (1,155), valuation of financial instruments in equity investments of COP 1,472, and deferred tax of COP 1,432.
1


CONDENSED SEPARATE INTERIM STATEMENT OF CASH FLOW
BANCOLOMBIA S.A.
For the three-month periods ended March 31, 2025 and 2024
(Stated in millions of Colombian pesos)

Note 2025 2024
Net income 1,784,590 1,593,894
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and impairment 16.3 235,915 231,758
Equity method 15.5 (536,544) (566,881)
Provision for impairment of loan portfolio and financial leasing transactions, net 5 760,032 1,515,065
Other assets impairment 10,974 12,970
Net interest income (3,504,760) (3,781,981)
Gain on sale of equity instruments - (1,155)
Gain on sale of property and equipment 15.4 (34,704) (3,417)
Gain on repositioning of inventories and sale of assets held for sale 15.4 (16,525) (31,171)
Interest and valuation of financial instruments at fair value - Debt securities 15.1 (329,905) (287,415)
Gain on valuation of financial instruments at amortized cost (71,382) (78,797)
Gain on valuation of equity instruments (11,383) (55)
Loss on valuation of cash operations 15.1 (16,232) 9,674
Gain on valuation of derivatives   55,464 89,306
Other provisions 2,990 12,014
Bonds and short-term benefits 152,921 103,918
Other non-cash items 3,391 (34)
Preferred shares dividend expense 15.2 14,837 14,837
Dividends on equity investments 15.5 (3,592) (2,673)
Effect of exchange rate changes 234,015 (143,347)
Income tax expense 8 600,499 532,303
Change in operating assets and liabilities:
(Increase) decrease Financial instruments measured at fair value through profit and loss 1,562,465 (750,113)
Increase Loan portfolio and financial leasing operations (5,874,026) (2,197,212)
Increase Other accounts receivable 145,279 (19,336)
(Increase) Decrease Derivatives 191,456 118,891
Decrease (Increase) Other assets 696,170 95,935
Increase Deposits (532,274) (5,860,553)
Increase decrease Increase in accounts payable (500,119) (760,967)
Increase in other liabilities and provisions (463,736) (532,924)
Interest received 5,624,335 6,567,859
Received dividends 707,878 130,438
Proceeds from sale of assets held for sale and inventories 0 278,790 245,363
Recovery of charged-off receivables account 104,066 98,707
Interest paid (2,646,415) (3,350,691)
Income tax paid (456,534) (61,917)
Net cash provided by (used in) operating activities (1,832,064) (7,057,707)
Cash flows from investment activities
Investments Purchase: (339,528) (1,022,433)
Investments at amortized cost (245,782) (960,499)
Investments in subsidiaries (93,746) (21,364)
Investments in associates and joint ventures - (40,570)
Investments sale: 111,536 727,239
Financial instruments measured at fair value through OCI - Debt securities 5,439 -
Financial instruments measured at fair value through OCI – Equity investment - 1,155
Investments at amortized cost 106,097 726,084
Acquisition of property and equipment (212,572) (114,569)
Acquisition of investment property - (24,310)
Proceeds from sale of property and equipment 86,622 26,370
Acquisition of intangible assets (15,432) (12,151)
Net cash used in investing activities (369,374) (419,854)
Cash flows from financial activities:
Increase in monetary and related market operations 393,113 602,077
Opening of financial obligations 440,497 711,990
Cancellation of financial obligations (1,617,652) (3,000,339)
Lease liabilities (30,436) (27,647)
Cancellation of debt securities (98,756) (271,375)
Dividends paid (849,444) (849,322)
Net cash (used in) provided by Financial activities (1,762,678) (2,834,616)
(Decrease) / Increase in cash and cash equivalents, before the effect of exchange rate changes (3,964,116) (10,312,177)
Effect of exchange rate variations on cash and cash equivalents (207,406) 34,844
(Decrease) Increase in cash and cash equivalents (4,171,522) (10,277,333)
Cash and cash equivalents at the beginning of the period 3 19,025,227 24,348,860
Cash and cash equivalents at the end of the period 3 14,853,705 14,071,527
The accompanying notes form an integral part of these separate financial statements.
The statement of cash flows includes the following non-cash transactions, which were not reflected in the separate statement of cash flows:
a)Restructured loans and repossessed assets that were transferred to assets held for sale, inventories and other assets, for COP 67,667 y COP 48,768.
1


NOTE 1. REPORTING ENTITY
Bancolombia S.A., hereinafter the Bank, is a credit establishment, listed on the Colombia Stock Exchange (BVC) as well as on the New York Stock Exchange (NYSE), since 1981 and 1995, respectively. The Bank main location is in Medellín (Colombia), main address Carrera 48 # 26-85, Avenida Los Industriales, and was originally constituted under the name Banco Industrial Colombiano (BIC) according to public deed number 388, date January 24, 1945, from the First Notary's Office of Medellin, authorized by the Superintendence of Finance of Colombia (“SFC”). On April 3, 1998, by means of public deed No. 633, BIC merged with Bank of Colombia S.A., and the resulting organization of that merger was named Bancolombia S.A.
The duration contemplated in the bylaws is until December 8, 2144, but it may be dissolved or renewed before the end of that period.
Bancolombia´s bylaws are formalized in the public deed number 2040, dated July 26, 2024, at the 20th Notary´s Office of Medellín.
Bancolombia S.A. business purpose is to carry out all operations, transactions, acts and services inherent to the banking business. The Bank may, by itself or through its subsidiaries, own interests in other corporations, wherever authorized by law, according to all terms and requirements, limits or conditions established therein.
The operating license was definitively authorized by the SFC according to Resolution number 3140 of September 24, 1993.
The Bank, through its subsidiaries, has banking operations and international presence in United States, Puerto Rico, Panamá Guatemala and El Salvador.
Bancolombia S.A. announced on October 29, 2024 that its Board of Directors authorized management to move forward with the steps necessary to modify the corporate structure of Bancolombia, its affiliates and subsidiaries through the creation of a holding company to be named Grupo Cibest S.A. as well as certain related corporate transactions.
The Corporate Structure Changes was presented for consideration at the shareholder meetings of the entities involved, including at an Extraordinary General Shareholders’ Meeting of the common and preferred shareholders of Bancolombia held on April 23, 2025.
The Changes in the Corporate Structure include the following transactions:

(i)The distribution of certain subsidiaries by Bancolombia (Panama) S.A. to Sociedad Beneficiaria BC Panamá S.A.S., a company established by Bancolombia with the sole purpose of being the beneficiary of this distribution and subsequently merged into Bancolombia.
(ii)The merger of Sociedad Beneficiaria BC Panamá S.A.S into Bancolombia.
(iii)The distribution of certain assets and subsidiaries of Banca de Inversión Bancolombia S.A. Corporación Financiera to Bancolombia.
(iv)The distribution of certain assets and subsidiaries of Bancolombia to Grupo Cibest.

Once the Corporate Structure Changes are completed, Grupo Cibest will be the parent company of Bancolombia its affiliates and subsidiaries.
The shareholders of Bancolombia will become shareholders of Grupo Cibest, maintaining the same number of shares and the same percentage investment and under the same terms and conditions they have in Bancolombia at the time the transaction is finalized, which means the transaction will not involve the change in any rights with respect to the common and preferred shares nor any transfer of value to third parties.

On January 13, 2025, Bancolombia announced the publication of notices of merger by absorption and distribution of certain assets.
2

On the other hand, The assets and liabilities of the operations in Barbados through Mercom Bank were transferred to other companies, leaving the balances of the credit portfolio and deposit portfolio at zero. The company is in the process of dissolution and liquidation.
For its part, operations in the Cayman Islands through Sinesa Cayman have been canceled or transferred. The company is in the process of dissolution and liquidation. The General Assembly of Shareholders of Transportempo S.A.S approved the liquidation of the company, making the corresponding adjudications and approvals of its final accounts. The above is recorded in Minute No. 98 of July 3, 2024.
On December 14, 2021, the Bank's Board of Directors authorized the legal separation of the Nequi business, the digital platform of Grupo Bancolombia which offers financial services. The Financial Superintendence of Colombia, through Resolution 0843 of July 6, 2022, modified by the Resolution 0955 of July 27, 2022, authorized the constitution of Nequi S.A. Financial Company. The legal separation implied the creation and commercial registration of a new corporation which will be supervised by the Financial Superintendence of Colombia through which Nequi will operate completely as a digital bank (compañía de financiamiento). In order to be able to operate, compliance with all the activities required to obtain the authorization certificate or operating permit must be accredited to the Financial Superintendence of Colombia. All activities are being carried out for this purpose. On September 2022 the company NEQUI S.A.S. was created with a capitalization of COP 150,000 distributed. Its main shareholders are Banca de Inversión Bancolombia S.A. with a participation of 94.99% and Inversiones CFNS S.A.S. with 5.01%.
On July 22, 2022, through the subsidiary Sistemas de inversiones y negocios S.A. SINESA, the company Wenia LTD, a corporate vehicle whose purpose is to provide technology services, was incorporated in Bermuda. By private document of October 18, 2022, Wenia LTD as the sole shareholder, registered on November 22, 2022 in the Medellín Chamber of Commerce, the commercial nature company called Wenia S.A.S., whose purpose is, among others, the creation and implementation of operating systems and software applications. On April 9, 2024, the participation held by Sistemas de Inversiones y Negocios S.A. in Wenia LTD was transferred to Banca de Inversión Bancolombia S.A.
As of March 31, 2025, the Bank has 22,227 employees, operates through 27,541 banking correspondents, 4,598 ATMs, 571 offices and 485 mobile service points throughout Colombia.

SEPARATE FINANCIAL STATEMENTS NOTES
BANCOLOMBIA S.A.
NOTE 2. MATERIAL ACCOUNTING POLICIES
A.Basis for preparation of condensed interim financial statements
The condensed separate interim financial statements for the cumulative three months ended on March 31, 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). The condensed consolidated interim financial statements as of March 31, 2025, and 2024 have not been audited.
The condensed separate financial statements, being of an interim nature, do not include all the information and disclosures required for full annual financial statements, and therefore, should be read together with the Bank's condensed separate financial statements as of the close of the fiscal year ended December 31, 2024 which complied with the Normas de Contabilidad e Información Financiera (“NCIF”) accepted in Colombia, in accordance with the Marco Técnico Normativo issued through the Decreto Único Reglamentario 2420 of 2015 and its amendments, by the Ministerio de Hacienda y Crédito Público and Ministerio de Comercio, Industria y turismo. These interim financial statements have not been audited.
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This framework is based on 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), and exempts the application of IAS 39 and IFRS 9, only with respect to the loan portfolio and its impairment and the classification and valuation of investments, which are recognised, classified and measured in accordance with the provisions of the Superintendencia Financiera de Colombia (“SFC”) contained in the Circular Externa 100 of 1995, and IFRS 5 for the determination of impairment of foreclosed assets, which are impaired in accordance with the provisions of the SFC. The above provisions are considered NCIF accepted in Colombia.
Preparation of the condensed separate interim financial statements under going concern basis
Management has assessed the Bank’s ability to continue as a going concern and confirms that the Bank 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 Bank'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.
In the Management opinion, these condensed separate interim financial statements reflect all material adjustments considered necessary in the circumstances and based on the best information available as of March 31, 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 three months ended on March 31, 2025 and 2024 are not necessarily indicative of the results for the full year. The Bank believes that the disclosures are sufficient to make the information presented not misleading or biased. For this reason, the condensed separate 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 Bank’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 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, joint ventures and subsidiaries are measured using the equity method.
The condensed interim financial statements are stated in Colombian pesos (“COP”) and figures are stated in millions, except the exchange rate, which are stated in units of Colombian pesos, while other currencies (dollars, euro, pounds, etc.) are stated in thousands.
B.Use of estimates and judgments
The preparation condensed separate interim financial statements requires that the Bank'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.
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For the period ended on March 31, 2025, there were no changes in the significant estimates and judgments made by Management in applying the Bank's accounting, as compared to those applied in the financial statements at the year ended on December 31, 2024.
C.Material accounting policies and recently issued accounting pronouncements.
The same accounting policies and methods of calculation applied in the financial statements at the end of the year ended on December 31, 2024, continue to be applied in these condensed separate interim financial statements, except for the adoption of new standards, improvements and interpretations effective from January 1, 2025, as shown below:
a.Recently accounting pronouncements issued by IASB pending to incorporate in NCIF framework accepted in Colombia.
Amendments to IFRS 9 Financial instruments and IFRS 7 Financial instruments: disclosures - Classification and measurement of financial instruments:
In May 2024, the Board issued amendments to the classification and measurement requirements in IFRS 9. These amendments respond to feedback from post-implementation review of the accounting standard and clarify the requirements in areas where stakeholders have raised concerns, or where new issues have emerged since IFRS 9 was issued.
These amendments include:
–Clarifying the classification of financial assets with environmental, social and corporate governance (ESG) and similar features: ESG-linked features in loans could affect whether the loans are measured at amortised cost or fair value. To resolve any potential diversity in practice, the amendments clarify how the contractual cash flows on such loans should be assessed.
–Settlement of liabilities through electronic payment systems: The amendments clarify the date on which a financial asset or financial liability is derecognised. The IASB also decided to develop an accounting policy option to allow a company to derecognised a financial liability before it delivers cash on the settlement date if specified criteria are met.
With these amendments, the IASB has also introduced additional disclosure requirements to enhance transparency for investors regarding investments in equity instruments designated at fair value through other comprehensive income and financial instruments with contingent features, for example features tied to ESG-linked targets.
The amendments are effective for annual reporting periods beginning on or after January 1, 2024, and early application is permitted.
Management is assessing the impact that these amendments will have on the Bank's condensed separate interim financial statements and disclosures.
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.
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•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 Bank'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:
March 31, 2025 December 31, 2024
In millions of COP
Cash
Cash 7,334,793  7,125,488 
Deposits from Colombian Central Bank (1)
1,836,494  2,562,485 
Deposits from banks and other private financial institutions (2)
 1,835,793  3,604,035 
Checks on hold 2  118 
Total cash 11,007,082  13,292,126 
Monetary market transactions -  - 
Reverse repurchase agreements (3)
 3,353,027  5,613,041 
Interbank borrowings 493,596  120,060 
Total monetary market transactions 3,846,623  5,733,101 
Total cash and cash equivalents 14,853,705  19,025,227 
(1)According to External Resolution No. 20 of 2020 issued by Colombian Central Bank, which amends External Resolution No. 5 of 2008 issued by the Colombian Central Bank, the Bank must maintain the equivalent of 7% of the deposits mentioned in Article 1, paragraph (a) and the equivalent of 2.5% of its customer deposits with a maturity of less than 18 months paragraph (b) as an ordinary reserve represented in deposits at the Central Bank or as cash in hand.
(2)The variation corresponds mainly to treasury negotiation strategies in foreign currency.
(3)The variation is due to the decrease in Repos in simultaneous operations with the Central Counterparty Clearing House.

As of March 31, 2025 and December 31, 2024, there is restricted cash amounting to COP 389,961 and COP 441,849 respectively, included in other assets on the statement of financial position, which represents margin deposits pledged as collateral for derivative contracts traded through Colombian clearing houses.
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NOTE 4. FINANCIAL ASSETS INVESTMENTS, NET AND DERIVATIVES
The Bank's portfolio investment in financial instruments and derivatives as of March 31, 2025 and December 31, 2024, is described below:
Financial assets investments and derivative financial instruments March 31, 2025 December 31, 2024
In millions of COP
Investments in debt securities
Negotiable investments (1)
 10,799,854  12,710,200 
Available-for-sale investments 3,399,644  3,326,813 
Held-to-maturity investments(2)
 4,328,117  4,117,051 
Subtotal debt securities, net 18,527,615  20,154,064 
Pledged financial assets (3)
 1,748,706  1,156,624 
Total debt securities 20,276,321  21,310,688 
Equity instruments (3)
 458,943  445,356 
Total investment financial assets, net 20,735,264  21,756,044 
   
Total derivative assets (4)
 2,520,831  2,924,434 
   
Total derivative liabilities (4)
 (2,509,980) (2,667,439)
(1)As of March 31, 2025 there is a decrease in the marketable investments of COP 1,910,346, mainly in treasury securities - TES COP 2,036,094 and increase in securities issued by the Colombian Government COP 120,581 mainly due to the acquisition of U.S. issuer's securities.
(2)As of March 31, there was an increase in the investments to maturity portfolio for COP 211,066, mainly due to the acquisition of TDA for COP 245,782, also, there was a decrease in the portfolio due to the sale of TDA for COP 27,440.
(3)See Note 4.1. Financial assets investments, net.
(4)See Note 4.2. Derivative financial instruments.
4.1.Financial assets investments, net
The detail of the financial investment assets is as follows:
As of March 31, 2025
Debt securities Measurement methodology
Held for trading Available-for-sale investments Held-to-maturity investments Total carrying amount
In millions of COP
Treasury securities issued by the Colombian Government - TES 8,098,862  -  -  8,098,862 
Corporate bonds 2,253,779  134,655  770,795  3,159,229 
Agricultural Development Securities issued by the Colombian Government (TDA) -  -  3,557,322  3,557,322 
Solidarity Securities issued by the Colombian Government (TDS) -  2,706,437  -  2,706,437 
Other public debt -  558,552  -  558,552 
Other financial investment assets 323,583  -  -  323,583 
Mortgage backed securities (TIPS) 123,630  -  -  123,630 
Total debt securities 10,799,854  3,399,644  4,328,117  18,527,615 
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As of December 31, 2024
Debt securities Measurement methodology
Held for trading Available-for-sale investments Held-to-maturity investments Total carrying amount
In millions of COP
Treasury securities issued by the Colombian Government - TES 10,134,956  -  -  10,134,956 
Corporate bonds 2,116,724  133,059  780,678  3,030,461 
Agricultural Development Securities issued by the Colombian Government (TDA) -  -  3,336,373  3,336,373 
Solidarity Securities issued by the Colombian Government (TDS) -  2,648,355  -  2,648,355 
Other public debt -  545,399  -  545,399 
Other financial investment assets 315,575  -  -  315,575 
Mortgage backed securities (TIPS) 142,945  -  -  142,945 
Total debt securities 12,710,200  3,326,813  4,117,051  20,154,064 
The following table shows the detail of debt securities maturity:
As of March 31, 2025
Debt securities Less than 1 year Between 1 and 3 years Between 3 and 5 years Greater than 5 years Total
In millions of COP
Negotiable investments
Treasury securities issued by the Colombian Government - TES 560,635  5,368,760  1,150,829  1,018,638  8,098,862 
Corporate bonds 1,718,486  175,402  102,792  257,099  2,253,779 
Other financial investment assets 126,889  131,014  65,680  -  323,583 
Mortgage- backed securities (TIPS) 2,779  62  30,569  90,220  123,630 
Subtotal negotiable investments 2,408,789  5,675,238  1,349,870  1,365,957  10,799,854 
Available-for-sale investments -  -  -  -  - 
Solidarity Securities issued by the Colombian Government (TDS) 2,706,437  -  -  -  2,706,437 
Corporate bonds -  84,021  50,634  -  134,655 
Other public debt -  41,332  -  517,220  558,552 
Subtotal available-for-sale investments 2,706,437  125,353  50,634  517,220  3,399,644 
Held-to-maturity investments -  -  -  -  - 
Agricultural Development Securities issued by the Colombian Government (TDA) 3,557,322  -  -  -  3,557,322 
Corporate bonds -  471,584  198,740  100,471  770,795 
Mortgage-backed securities (TIPS) 3,557,322  471,584  198,740  100,471  4,328,117 
Subtotal held-to-maturity investments 8,672,548  6,272,175  1,599,244  1,983,648  18,527,615 
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As of December 31, 2024
Debt securities Less than 1 year Between 1 and 3 years Between 3 and 5 years Greater than 5 years Total
In millions of COP
Negotiable investments
Treasury securities issued by the Colombian Government - TES 478,761  6,182,314  1,120,892  2,352,989  10,134,956 
Corporate bonds 1,511,689  148,443  91,011  365,581  2,116,724 
Other financial investment assets 94,669  111,231  104,206  5,469  315,575 
Mortgage- backed securities (TIPS) 2,749  185  45,842  94,169  142,945 
Subtotal negotiable investments 2,087,868  6,442,173  1,361,951  2,818,208  12,710,200 
Available-for-sale investments -  -  -  -  - 
Solidarity Securities issued by the Colombian Government (TDS) 2,648,355  -  -  -  2,648,355 
Corporate bonds -  83,315  49,744  -  133,059 
Other public debt -  41,369  -  504,030  545,399 
Subtotal available-for-sale investments 2,648,355  124,684  49,744  504,030  3,326,813 
Held-to-maturity investments -  -  -  -  - 
Agricultural Development Securities issued by the Colombian Government (TDA) 3,336,373  -  -  -  3,336,373 
Corporate bonds -  471,587  208,606  100,485  780,678 
Mortgage-backed securities (TIPS) 3,336,373  471,587  208,606  100,485  4,117,051 
Subtotal held-to-maturity investments 8,072,596  7,038,444  1,620,301  3,422,723  20,154,064 
For more information related to fair value disclosures of investments classified as held-to-maturity, see Note 19. Fair value of assets and liabilities.
The net effect in the statement of comprehensive income corresponding to the debt securities is COP (7,435) as of March 31, 2025 and COP (4,724) as of March 31, 2024. See separate statement of comprehensive income –Net gain (loss) on valuation of financial instruments.
These assets have no restrictions or limitations as of March 31, 2025 and March 31, 2024, except for the securities pledged as collateral for Reverse repurchase agreements and derivatives indicated below:
As of March 31, 2025
Pledged financial assets Term Security type Carrying amount
In millions of COP
Securities issued by the Colombian Government
Investments pledged as collateral in transactions with reverse repurchase agreements Up to 1 month Treasury securities 945,850
Investments pledged as collateral in transactions with derivatives Between 1 and 3 months Treasury securities 802,856
Total securities issued by the Colombian Government 1,748,706
Total pledged financial assets 1,748,706
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As of December 31, 2023
Pledged financial assets Term Security type Carrying amount
In millions of COP
Securities issued by the Colombian Government
Investments pledged as collateral in transactions with reverse repurchase agreements Up to 1 month Treasury securities 480,435
Investments pledged as collateral in transactions with derivatives Between 1 and 3 months Treasury securities 676,189
Total securities issued by the Colombian Government 1,156,624
Total pledged financial assets 1,156,624
The detail of investments in equity securities is as follows:
Total equity financial instruments March 31, 2025 December 31, 2024
In millions of COP
Investments at fair value through profit or loss (1)
 291,349 279,966
Investments at fair value with changes in OCI (2)
 159,208 157,331
Financial instruments measured at fair value with changes in equity with changes in OCI 8,386 8,059
Total equity financial instruments 458,943 445,356
(1)The category of Investments at fair value through income statement includes Renta Fija Plus and Renta Fija Plazo trusts.
(2)The detail of this investments is presented in the table “Equity instruments measured at fair value through OCI”.
Detail of equity instruments measured at fair value through OCI:
Carrying amount
Equity instruments measured at fair value through OCI March 31, 2025 December 31, 2024
In millions of COP
Credibanco S.A. 109,011 109,011
Holding Bursátil Regional S.A 22,155 20,978
Derechos Residuales (1)
 12,963 12,051
Banco Latinoamericano de Comercio Exterior S.A. Bladex 10,837 11,078
Derecho Fiduciario Inmobiliaria Cadenalco 4,240 4,212
Bolsa de Valores de Colombia S.A. 2 1
Total Equity instruments measured at fair value through OCI 159,208 157,331
(1)As of March 31, 2025 no payments for Residual Rights were received. As of March 31, 2024, COP (1,155) were made from OCI, which were transferred to results.
Investments in equity securities measured at fair value through OCI are considered strategic for the Bank and, therefore, there is no intention to sell them in the foreseeable future. That is the reason why this alternative is used for its presentation.
The effect of valuation in the statement of comprehensive income corresponding to equity investment financial securities is COP 2,204 as of March 2025 and COP 1,472 as for March 2024. See Condensed separate interim statement of comprehensive income - net loss on valuation of financial instruments.
Dividends on equity securities through OCI recognized as of March 31, 2025 and 2024 amount to COP 3,592 and COP 2,673, respectively. See Note 15.5. Equity investment income.
As of March 31, 2025 and December 31, 2024 there were no impairment losses on equity securities. These investments do not have a maturity date therefore, they are not included in the maturity detail.
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4.2.Derivative financial instruments
The Bank derivative activities do not give rise to significant open positions in portfolios of derivatives. The Bank enters into derivative transactions to facilitate customer business, for hedging purposes and arbitrage activities, such as forwards, options, or swaps where the underlying assets 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 indexes. 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 Bank’s risk, please see item Risk Management.
The following table presents the Bank's derivatives by type of risk as of March 31, 2025 and December 31, 2024:
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Derivatives March 31, 2025 December 31, 2024
In millions of COP
Forwards
Assets
Foreign exchange contracts 1,143,084 1,074,137
Equity contracts 46,616 51,645
Subtotal assets 1,189,700 1,125,782
Liabilities    
Foreign exchange contracts (1,026,405) (963,535)
Equity contracts (3,931) (1,367)
Subtotal liabilities (1,030,336) (964,902)
Total forwards 159,364 160,880
Swaps
Assets
Foreign exchange contracts 1,026,814 1,463,256
Interest rate contracts 212,795 233,019
Subtotal assets 1,239,609 1,696,275
Liabilities    
Foreign exchange contracts (1,108,448) (1,332,432)
Interest rate contracts (255,202) (287,623)
Subtotal liabilities (1,363,650) (1,620,055)
Total swaps (1)
 (124,041) 76,220
Options    
Assets
Foreign exchange contracts 91,522 102,377
Subtotal assets 91,522 102,377
Liabilities
Foreign exchange contracts (115,994) (82,482)
Subtotal liabilities (115,994) (82,482)
Total options (24,472) 19,895
Derivative assets 2,520,831 2,924,434
Derivative liabilities (2,509,980) (2,667,439)
(1) As of March 31, 2025 there was a decrease in swap assets and liabilities with compared to current swaps as of December 2024, of the total 10,220 transactions, 870 transactions have matured as of March 2025.
The table below details the amount of derivatives net by maturity:
As of March 31, 2025
Forward Swaps Options Total
Assets 1,189,700  1,239,609  91,522  2,520,831 
Less than 1 year 1,147,103  279,462  83,155  1,509,720 
Between 1 and 3 years 42,597  455,212  8,367  506,176 
More than 3 years -  504,935  -  504,935 
Liabilities (1,030,336) (1,363,650) (115,994) (2,509,980)
Less than 1 year (1,003,127) (420,596) (106,984) (1,530,707)
Between 1 and 3 years (27,209) (438,009) (9,010) (474,228)
More than 3 years -  (505,045) -  (505,045)
As of December 31, 2024
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Forward Swaps Options Total
Assets 1,125,782  1,696,275  102,377  2,924,434 
Less than 1 year 1,094,845  440,816  96,891  1,632,552 
Between 1 and 3 years 30,937  649,909  5,486  686,332 
More than 3 years -  605,550  -  605,550 
Liabilities (964,902) (1,620,055) (82,482) (2,667,439)
Less than 1 year (934,875) (375,375) (76,536) (1,386,786)
Between 1 and 3 years (30,027) (604,227) (5,946) (640,200)
More than 3 years -  (640,453) -  (640,453)
Derivatives' guarantee
The following table presents the cash and securities collateral for derivatives as of March 31, 2025 and December 31, 2024:
March 31, 2025 December 31, 2024
In millions of COP
Guarantees received 1,192,422  1,117,651 
Guarantees delivered (282,114) (371,426)
4.3 Hedge of a net investment in a foreign operation
The Bank uses hedge accounting for net investments in foreign operations with non-derivative instruments and has designated USD 884,544 in debt securities issued as hedging instruments. The purpose of this operation is to protect the Bank from the exchange rate risk (USD/COP) of a portion of the net investment in Banistmo S.A., a company domiciled in Panama City and whose financial statements are denominated in USD dollars. The book value and the hedged portion of the investment are listed below:
Banistmo S.A. March 31, 2025 December 31, 2024
In thousands of USD
Investment portion covered in the hedging relationship 884,544 884,544
Investment portion uncovered 1,745,148 1,723,889
Total investment in Banistmo S.A. 2,629,692 2,608,433
The following is a detail of the hedging instruments of the net investment in the net foreign investment:
As of March 31, 2025
Debt securities issued in thousands of USD, designated as hedging instruments
Opening date Due date E.A rate Capital balance Capital designated as hedging instrument
18/10/2017 18/10/2027 7.03% 461,707 355,339
24/06/2024 24/12/2034 8.82% 800,000 529,205
 Total Debt securities 1,261,707 884,544
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As of December 31, 2024
Debt securities issued in thousands of USD, designated as hedging instruments
Opening date Due date E.A rate Capital balance Capital designated as hedging instrument
18/10/2017 18/10/2027 7.03% 461,707 355,339
24/06/2024 24/12/2034 8.82% 800,000 529,205
Total Debt securities 1,261,707 884,544
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.
The Bank 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 884,544. 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 on a before taxes.
Gains or losses on translation of Banistmo's financial statements are recognized in other comprehensive income (OCI). Consequently, the exchange difference related to the translation of debt securities issued and borrowings from correspondent banks is recognized directly in OCI. The foreign currency translation adjustment corresponding to hedging instruments as of March 31, 2025 was COP 192,264 and as of March 31, 2024 was COP (38,075). See Condensed separate interim statement of comprehensive income - (Loss) gain on hedge of net investment in a foreign operation.
NOTE 5. LOANS PORTFOLIO AND FINANCIAL LEASING OPERATIONS, NET
The following is the composition of the loans and financial leasing operations portfolio, net as of March 31, 2025 and December 31, 2024:
Composition March 31, 2025 December 31, 2024
In millions of COP
Commercial (1)
 106,303,866  102,823,571 
Consumer 36,741,482  37,130,451 
Financial leasing 26,359,942  26,154,135 
Mortgage (2)
 26,307,561  25,163,198 
Small business loans 762,039  656,350 
Total loan portfolio and financial leasing operations 196,474,890  191,927,705 
Total provision for loan portfolio and leasing operations impairment (3)
 (13,422,797) (13,829,166)
Total loan portfolio and leasing operations, net 183,052,093  178,098,539 
(1)The increase was mainly attributable to disbursements made during the first quarter due to the quotas offered with rate benefits.
(2)The increase is mainly due to better dynamics following the reactivation of government subsidies, as well as in response to the housing for all strategy.
(3)Includes general provision for loan portfolio and leasing operations, in accordance with SFC regulations
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Provision concept March 31, 2025 December 31, 2024
In millions of COP
General provision Small business loans and Mortgage (Circular 100, 1995) 268,516 256,011
Total general provision 268,516 256,011
Loans and leasing operations portfolio by risk category
As of March 31, 2025 and December 31, 2024, the loan portfolio and leasing operations are distributed in the following risk categories:
As of March 31, 2025
Commercial Loans Provision Total net
Category Capital Interest and/or financial component Other items Capital Interest and/or financial component Other items
In millions of COP
A – Normal risk 96,960,864 1,349,667 15,045 1,342,919 20,651 428 96,961,578
B – Acceptable risk 1,566,229 26,603 1,412 65,996 2,157 260 1,525,831
C – Appreciable risk 1,313,396 82,606 1,051 474,940 81,572 949 839,592
D – Significant risk 2,340,088 70,677 13,409 1,710,338 70,677 13,379 629,780
E – Unrecoverable risk 2,528,210 25,679 8,930 2,108,605 25,679 8,748 419,787
Total 104,708,787 1,555,232 39,847 5,702,798 200,736 23,764 100,376,568
Consumer Loans Provision Total net
Category Capital Interest and/or financial component Other items Capital Interest and/or financial component Other items
In millions of COP
A – Normal risk 30,734,511 376,974 56,847 906,409 14,300 2,705 30,244,918
B – Acceptable risk 911,098 21,222 3,604 143,681 6,532 1,542 784,169
C – Appreciable risk 748,300 15,907 3,366 197,838 12,212 2,861 554,662
D – Significant risk 771,382 21,287 5,674 735,007 21,287 5,667 36,382
E – Unrecoverable risk 2,968,825 79,361 23,124 2,861,749 79,361 22,733 107,467
Total 36,134,116 514,751 92,615 4,844,684 133,692 35,508 31,727,598
Leasing Loans Provision Total net
Category Capital Interest and/or financial component Other items Capital Interest and/or financial component Other items
In millions of COP
A – Normal risk 21,492,617 139,290 2,507,646 386,986 3,109 41,824 23,707,634
B – Acceptable risk 607,667 8,952 28,977 25,444 557 1,290 618,305
C – Appreciable risk 439,855 4,326 16,821 93,907 3,766 15,399 347,930
D – Significant risk 632,870 58,701 33,718 336,280 58,656 33,599 296,754
E – Unrecoverable risk 277,697 79,180 31,625 263,874 79,178 31,625 13,825
Total 23,450,706 290,449 2,618,787 1,106,491 145,266 123,737 24,984,448
15

Mortgage Loans Provision Total net
Category Capital Interest and/or financial component Other items Capital Interest and/or financial component Other items
In Millions of COP
A – Normal risk 24,498,424 174,601 1,610 506,014 1,839 15 24,166,767
B – Acceptable risk 441,473 4,243 671 30,781 4,243 671 410,692
C – Appreciable risk 357,042 7,079 1,077 51,899 7,079 1,077 305,143
D – Significant risk 493,642 4,781 1,830 109,677 4,781 1,830 383,965
E – Unrecoverable risk 312,008 4,718 4,362 312,008 4,718 4,362 -
Total 26,102,589 195,422 9,550 1,010,379 22,660 7,955 25,266,567
Small business loans Loans Provision Total net
Category Capital Interest and/or financial component Other items Capital Interest and/or financial component Other items
In millions of COP
A – Normal risk 682,614 7,597 2,504 14,325 115 39 678,236
B – Acceptable risk 13,144 398 124 451 398 124 12,693
C – Appreciable risk 8,062 239 80 4,909 239 80 3,153
D – Significant risk 11,828 293 127 11,749 293 126 80
E – Unrecoverable risk 33,122 1,006 901 30,376 1,006 897 2,750
Total 748,770 9,533 3,736 61,810 2,051 1,266 696,912
Total loans Loans Provision Total Net
Category Capital Interest and/or financial component Other items Capital Interest and/or financial component Other items
In millions of COP
A – Normal risk 174,369,030 2,048,129 2,583,652 3,156,653 40,014 45,011 175,759,133
B – Acceptable risk 3,539,611 61,418 34,788 266,353 13,887 3,887 3,351,690
C – Appreciable risk 2,866,655 110,157 22,395 823,493 104,868 20,366 2,050,480
D – Significant risk 4,249,810 155,739 54,758 2,903,051 155,694 54,601 1,346,961
E – Unrecoverable risk 6,119,862 189,944 68,942 5,576,612 189,942 68,365 543,829
Total 191,144,968 2,565,387 2,764,535 12,726,162 504,405 192,230 183,052,093
As of December 31, 2024
Commercial Loans Provision Total net
Category Capital Interest and/or financial component Other items Capital Interest and/or financial component Other items
In millions of COP
A – Normal risk 93,518,674 1,163,523 14,050 1,316,245 19,548 392 93,360,062
B – Acceptable risk 1,494,066 23,438 1,623 63,573 2,047 292 1,453,215
C – Appreciable risk 1,391,353 91,893 1,326 451,521 90,701 1,184 941,166
D – Significant risk 2,363,500 71,352 14,343 1,712,661 71,352 14,312 650,870
E – Unrecoverable risk 2,621,618 44,396 8,416 2,205,917 44,396 8,249 415,868
Total 101,389,211 1,394,602 39,758 5,749,917 228,044 24,429 96,821,181
16

Consumer Loans Provision Total net
Category Capital Interest and/or financial component Other items Capital Interest and/or financial component Other items
In millions of COP
A – Normal risk 30,764,653 385,004 55,730 917,778 14,658 2,639 30,270,312
B – Acceptable risk 821,642 22,653 3,633 122,317 7,039 1,603 716,969
C – Appreciable risk 756,964 18,313 3,539 196,859 13,998 3,000 564,959
D – Significant risk 1,117,242 27,980 6,792 1,058,048 27,980 6,783 59,203
E – Unrecoverable risk 3,039,743 82,528 24,035 2,928,664 82,528 23,590 111,524
Total 36,500,244 536,478 93,729 5,223,666 146,203 37,615 31,722,967
Leasing Loans Provision Total net
Category Capital Interest and/or financial component Other items Capital Interest and/or financial component Other items
In millions of COP
A – Normal risk 21,194,174 132,244 2,589,208 385,259 3,031 46,891 23,480,445
B – Acceptable risk 582,525 7,561 31,141 23,652 1,003 1,416 595,156
C – Appreciable risk 482,049 6,193 18,406 99,424 5,517 14,588 387,119
D – Significant risk 641,233 57,034 37,158 339,518 57,033 36,619 302,255
E – Unrecoverable risk 267,640 76,025 31,544 256,572 76,023 31,544 11,070
Total 23,167,621 279,057 2,707,457 1,104,425 142,607 131,058 24,776,045
Mortgage Loans Provision Total net
Category Capital Interest and/or financial component Other items Capital Interest and/or financial component Other items
In Millions of COP
A – Normal risk 23,413,649 177,235 1,750 483,766 1,861 18 23,106,989
B – Acceptable risk 457,800 4,759 699 29,489 4,759 699 428,311
C – Appreciable risk 359,989 6,146 1,153 49,697 6,146 1,153 310,292
D – Significant risk 445,213 4,970 1,688 99,614 4,970 1,688 345,599
E – Unrecoverable risk 279,846 4,093 4,208 279,846 4,093 4,208 -
Total 24,956,497 197,203 9,498 942,412 21,829 7,766 24,191,191
Small business loans Loans Provision Total net
Category Capital Interest and/or financial component Other items Capital Interest and/or financial component Other items
In millions of COP
A – Normal risk 576,447 6,595 1,952 12,214 99 32 572,649
B – Acceptable risk 9,059 249 69 320 249 69 8,739
C – Appreciable risk 7,226 227 63 4,441 227 63 2,785
D – Significant risk 14,176 421 165 14,045 421 165 131
E – Unrecoverable risk 37,470 1,252 979 34,624 1,252 974 2,851
Total 644,378 8,744 3,228 65,644 2,248 1,303 587,155
17

Total loans Loans Provision Total net
Category Capital Interest and/or financial component Other items Capital Interest and/or financial component Other items
In millions of COP
A – Normal risk 169,467,597 1,864,601 2,662,690 3,115,262 39,197 49,972 170,790,457
B – Acceptable risk 3,365,092 58,660 37,165 239,351 15,097 4,079 3,202,390
C – Appreciable risk 2,997,581 122,772 24,487 801,942 116,589 19,988 2,206,321
D – Significant risk 4,581,364 161,757 60,146 3,223,886 161,756 59,567 1,358,058
E – Unrecoverable risk 6,246,317 208,294 69,182 5,705,623 208,292 68,565 541,313
Total 186,657,951 2,416,084 2,853,670 13,086,064 540,931 202,171 178,098,539
Provision for impairment of loan portfolio and leasing operations
The following table sets forth the changes in the allowance for loans and leasing operations losses as of March 31, 2025 and 2024:
As of March 31, 2025
Loans Commercial Consumer Leasing Mortgage Small business loans Total
In millions of COP
(+) Balance as of December 31, 2024 6,002,390 5,407,484 1,378,090 972,007 69,195 13,829,166
(+) Charged-off-loan recovery 10,287 64,857 23,144 5,789 (11) 104,066
(+) Impairment of loan portfolio and leasing operations, net (1)
129,797 533,034 9,275 76,214 11,712 760,032
(-) Period charges-off (2)
 287,833 991,491 35,015 13,016 15,769 1,343,124
(+) Provision for purchased portfolio 72,657 — — — — 72,657
Balance as of March 31, 2025 5,927,298 5,013,884 1,375,494 1,040,994 65,127 13,422,797
As of March 31, 2024
Loans Commercial Consumer Leasing Mortgage Small business loans Total
In millions of COP
(+) Balance as of December 31, 2024 5,087,527 5,461,726 1,282,986 974,580 85,533 12,892,352
(+) Charged-off-loan recovery 8,198 65,259 15,864 9,384 2 98,707
(+) Impairment of loan portfolio and leasing operations, net (1)
 261,343 1,126,842 74,298 33,078 19,504 1,515,065
(-) Period charges-off (2)
 97,209 1,078,904 35,736 7,687 20,351 1,239,887
Balance as of March 31, 2024 5,259,859 5,574,923 1,337,412 1,009,355 84,688 13,266,237
(1) The decrease in impairment expense in March 2025 compared to March 2024 is mainly generated in the individual portfolio.
(2) The write-offs are still in the process of collection management.

18

NOTE 6. INVESTMENT IN SUBSIDIARIES
The detail of investments in subsidiaries as of March 31, 2025 and December 31, 2024 is as below:
March 31, 2025 December 31, 2024
In millions of COP
Company name Main activity Country % of ownership Investment value % of ownership Investment value
Banistmo S.A. (1)
 Financial services Panamá 100.00  % 11,023,115  100.00  % 11,500,974 
Bancolombia Panamá S.A. (1)
 Financial services Panamá 100.00  % 9,373,535  100.00  % 10,206,593 
FCP Inmobiliario Colombia S.A.
Real estate services Colombia 80.43  % 3,056,590  80.43  % 2,987,499 
Banca de Inversión Bancolombia S.A. Corporación Financiera Financial services Colombia 94.90  % 1,152,773  94.90  % 1,156,057 
Bancolombia Puerto Rico Internacional Inc. (1)
 Financial services Puerto Rico 100.00  % 739,477  100.00  % 761,560 
P.A. Sodimac (2)
 Real estate services Colombia 100.00  % 506,953  100.00  % 500,744 
Fiduciaria Bancolombia S.A. Sociedad Fiduciaria Financial trust services Colombia 94.97  % 471,155  94.97  % 533,885 
P.A. Mercurio (3)
 Real estate services Colombia 100.00  % 320,216  100.00  % 318,453 
Valores Bancolombia S.A. Comisionista de Bolsa Trade-broker dealer Colombia 93.61  % 236,089  93.61  % 254,025 
P.A. NOMAD Cabrera (4)
 Real estate services Colombia 98.00  % 155,066  98.00  % 154,492 
P.A. NOMAD Central (5)
 Real estate services Colombia 98.00  % 138,567  98.00  % 133,572 
P.A. Salitre (6)
 Real estate services Colombia 98.00  % 136,238  98.00  % 88,832 
P.A. Nomad Distrito Vera (7)
 Real estate services Colombia 98.00  % 100,792  98.00  % 58,827 
P.A. FAI Calle 77 (NOMAD77) (7)
 Real estate services Colombia 98.00  % 62,809  98.00  % 62,656 
P.A. Nomad Nexo (9)
 Real estate services Colombia 98.00  % 9  98.00  % 14 
Sociedad Beneficiaria BC Panamá S.A.S. (10)
 Investments Colombia 100.00  % –  100.00  % - 
Total investment in subsidiaries 27,473,384  28,718,183 
(1)Decrease in the carrying value of investments mainly due to the effect of foreign exchange differences.
(2)As of March 2025, the equity method income recognized for this investment was COP 6,209.
(3)As of March 2025, the equity method income recognized for this investment was COP 1,763.
(4)As of March 2025, the Bank made a purchase of COP 2,940. The equity method loss recognized for this investment was COP (2,366).
(5)As of March 2025, the Bank made a purchase of COP 6,860. The equity method loss recognized for this investment was COP (1,865).
(6)As of March 2025, the Bank made a purchase of COP 48,510. The equity method loss recognized for this investment was COP (1,105).
(7)As of March 2025, the Bank made a purchase of COP 42,728. The equity method loss recognized for this investment was COP (763).
(8)As of March 2025, the equity method income recognized for this investment was COP 154.
(9)As of March 2025, the equity method loss recognized for this investment was COP (5).
(10)Corresponds to Beneficiary Company BC Panama with a capital of less than COP 1.
The following tables sets forth the changes of the Bank's subsidiary investments as of March 31, 2025 and December 31, 2024:
March 31, 2025
  Banistmo S.A. Bancolombia Panamá S.A. FCP Fondo Inmobiliario
Colombia.		 Banca de Inversión Bancolombia S.A. Corporación Financiera. Bancolombia Puerto Rico Internacional Inc. Fiduciaria Bancolombia S.A. Sociedad Fiduciaria. Valores Bancolombia S.A. Comisionista de
Bolsa.		 Others Total
In millions of COP
Initial balance 11,500,974 10,206,593 2,987,499 1,156,057 761,560 533,885 254,025 1,317,590 28,718,183
Equity method through income statement (1)
 86,527 287,140 69,091 472 15,454 48,667 12,982 2,022 522,355
OCI (Equity method) (2)
 (564,386) (520,998) - (3,756) (37,537) 492 154 - (1,126,031)
OCI (Translation adjustment) (2) 811,000 652,174 - - 47,735 - - - 1,510,909
Purchase / capitalizations - - - - - - - 101,038 101,038
Dividends - (595,582) - - - (111,906) (31,072) - (738,560)
Restitution of contributions - - - - - - - - -
Profit for previous years - (3,618) - - - 17 - - (3,601)
Final balance 11,023,115 9,373,535 3,056,590 1,152,773 739,477 471,155 236,089 1,420,650 27,473,384
(1)See Note 15.5. Income from equity investments.
(2)Corresponds to other comprehensive income recognized as equity method as of March 31, 2025. See Separate Statement of Comprehensive Income.
19

December 31, 2024
Banistmo S.A. Bancolombia Panamá S.A. FCP Fondo Inmobiliario Colombia. Banca de Inversión Bancolombia S.A. Corporación Financiera.
Bancolombia Puerto Rico Internacional Inc.
 Fiduciaria Bancolombia S.A. Sociedad Fiduciaria. Valores Bancolombia S.A. Comisionista de Bolsa. Otras Total
In millions of COP
Initial balance 9,920,304 8,838,482 2,733,074 1,394,710 580,423 490,721 213,275 580,956 24,751,945
Equity method through income statement. 215,595 1,324,141 254,425 (244,727) 84,983 176,777 38,778 61,440 1,911,412
OCI (Equity method) 1,859,077 1,472,293 - 8,171 96,154 (3,781) 2,770 - 3,434,684
OCI (Translation adjustment) (2,991,741) (2,648,131) - - (152,060) - - - (5,791,932)
Purchase / capitalizations - - - - - - - 678,239 678,239
Dividends (495,524) (1,432,156) - - - (130,301) - - (2,057,981)
Restitution of contributions - - - - - - - (3,045) (3,045)
Profit for previous years 1,522 3,833 - (2,097) - 469 (798) - 2,929
Final balance 11,500,974 10,206,593 2,987,499 1,156,057 761,560 533,885 254,025 1,317,590 28,718,183
The following is the supplementary information of the Bank's most significant subsidiaries as of March 31, 2025 and December 31, 2024 without eliminations:
As of March 31, 2025
Company name Assets Liabilities Income from ordinary activities Gain / (Loss)
In millions of COP
Banistmo S.A. 41,761,710  37,078,938  1,042,600  86,527 
Bancolombia Panamá S.A. 29,908,768  20,535,234  529,244  287,140 
FCP Fondo Inmobiliario Colombia 5,968,146  1,956,209  206,852  85,906 
Banca de Inversión Bancolombia S.A. Corporación Financiera 1,449,692  37,591  39,785  498 
The financial statements as of March 31, 2025 have been used for the purpose of applying the equity method for the subsidiaries.
As of December 31, 2024
Company name Assets Liabilities Income from ordinary activities Gain / (Loss)
In millions of COP
Banistmo S.A. 45,964,767 41,132,908 4,343,350 215,595
Bancolombia Panamá S.A. 32,095,844 21,889,251 2,190,330 1,324,141
FCP Fondo Inmobiliario Colombia 6,039,891 2,112,456 882,817 316,349
Banca de Inversión Bancolombia S.A. Corporación Financiera 1,464,181 48,620 190,300 (258,823)
The financial statements as of December 31, 2024 have been used for the purpose of applying the equity method for the subsidiaries.
As of March 31, 2025 and December 31, 2024 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.

20

NOTE 7. PREMISES AND EQUIPMENT, NET
As of March 31, 2025 and December 31, 2024, the premises and equipment, net consisted of the following:
Composition March 31, 2025 December 31, 2024
In millions of COP
Premises and equipment for own use 1,748,980 1,770,827
Premises and equipment in operating leases 2,989,785 3,095,756
Total premises and equipment, net 4,738,765 4,866,583
As of March 31, 2025
Premises and equipment for own use Balance as of
January 1, 2025
 Roll - forward Balance as of March 31, 2025
Additions (1)
 Expenses depreciation
Expenses impairment (2)
 Written off
Movements (3)
In millions of COP
Land
Cost 313,215 - - - -  (911) 312,304
Construction in progress
Cost 13,586 237 - - - - 13,823
Impairment - - - - - - -
Buildings
Cost 1,098,887 613 - - (147) (3,640) 1,095,713
Accumulated depreciation (179,109) - (5,106) - (6) 1,299 (182,922)
Furniture and fixtures
Cost 406,490 2,376 - - (2,421) - 406,445
Accumulated depreciation (218,814) - (6,565) - 2,117 - (223,262)
Impairment - - - (5) 5 - -
Computer equipment
Cost 695,302 9,969 - - (1,305) - 703,966
Accumulated depreciation (398,699) - (20,652) - 1,046 - (418,305)
Impairment - - - (192) 192 - -
Vehicles
Cost 17,573 265 - - (314) 788 18,312
Accumulated depreciation (9,339) - (869) - 314 - (9,894)
Machinery
Cost 96,725 433 - - (567) - 96,591
Accumulated depreciation (69,058) - (657) - 511 - (69,204)
Impairment - - - (27) 27 - -
Leasehold improvements
Cost 4,068 1,345 - - - - 5,413
Accumulated depreciation - - - - - - -
Total cost 2,645,846 15,238 - - (4,754) (3,763) 2,652,567
Total accumulated depreciation (875,019) - (33,849) - 3,982 1,299 (903,587)
Total accumulated impairment, net - - - (224) 224 - -
Total premises and equipment for own use, net 1,770,827 15,238 (33,849) (224) (548) (2,464) 1,748,980
(1)Computer equipment, mainly: laptops for COP 7,057 and CPUs for COP 1,353.
Fixtures and fittings, mainly: chiller for COP 851, condensing unit for COP 440 and handling unit for COP 362.
Improvements in other people's properties, mainly Plaza Las Américas branch for COP 446.
(2)Impairment losses recorded correspond to the procedure defined for assets due to obsolescence, losses and others, which results in the derecognition of the asset.
(3)Mainly due to the transfer to other unproductive assets of the administrative headquarters in Cali for COP 2,464.
21

Premises and equipment in operating leases Balance at
January 1,
2025		 Roll - forward Balance at
March 31,
2025
Additions(1)
 Expenses depreciation Expenses impairment Written off
Movements(2)
In millions of COP
Furniture and fixtures
Cost 2,091 - - - - - 2,091
Accumulated depreciation (868) - (63) - - - (931)
Vehicles
Cost 3,703,309 176,064 - - (66,461) (205,237) 3,607,675
Accumulated depreciation (749,141) - (84,761) - 15,666 55,648 (762,588)
Computer equipment
Cost 265,230 21,270 - - (4,208) (8,736) 273,556
Accumulated depreciation (124,865) - (16,422) - 3,633 7,636 (130,018)
Impairment - - - - - - -
Total cost 3,970,630 197,334 - - (70,669) (213,973) 3,883,322
Total accumulated depreciation (874,874) - (101,246) - 19,299 63,284 (893,537)
Total premises and equipment in operating leases, net 3,095,756 197,334 (101,246) - (51,370) (150,689) 2,989,785
(1)Purchase of vehicles to be included in operating lease agreements mainly with Renting Colombia S.A.S.
(2)Vehicles, corresponds mainly to transfers of assets that ended the lease contract and went to the inventory category for COP 147,258, net, and transfers to the portfolio for relocation of assets to Financial Leasing for COP 2,330.

Total premises and equipment Balance at
January 1,
2024		 Movimientos Balance at
March 31,
2025
Additions
Expenses depreciation(1)
Expenses impairment(1)
 Written off Movements
In millions of COP
Total premises and equipment - cost 6,616,476 212,572 - - (75,423) (217,736) 6,535,889
Total premises and equipment - accumulated depreciation (1,749,893) - (135,095) - 23,281 64,583 (1,797,124)
Total premises and equipment -impairment - - - (224) 224 - -
Total premises and equipment, net 4,866,583 212,572 (135,095) (224) (51,918) (153,153) 4,738,765

22

As of December 31, 2024
Premises and equipment in operating leases Balance at
January 1,
2024		 Roll - forward Balance at
December 31,
2024
Additions(1)
Expenses depreciation(2)
 Expenses impairment
Written off (3)
Movements(4)
In millions of COP
Land
Cost 311,778 - - - - 1,437 313,215
Construction in progress
Cost 7,690 8,620 - - - (2,724) 13,586
Impairment - - - - - - -
Buildings
Cost 1,102,332 1,364 - - - (4,809) 1,098,887
Accumulated depreciation (158,997) - (20,918) - - 806 (179,109)
Furniture and fixtures
Cost 366,790 47,774 - - (8,074) - 406,490
Accumulated depreciation (200,437) - (25,125) - 6,748 - (218,814)
Impairment - - - (288) 288 - -
Computer equipment
Cost 661,417 95,628 - - (61,743) - 695,302
Accumulated depreciation (379,474) - (80,184) - 60,959 - (398,699)
Impairment - - - (387) 387 - -
Vehicles
Cost 16,717 4,065 - - (3,209) - 17,573
Accumulated depreciation (9,276) - (3,190) - 3,127 - (9,339)
Machinery
Cost 91,761 7,199 - - (2,235) - 96,725
Accumulated depreciation (68,263) - (2,819) - 2,024 - (69,058)
Impairment - - - (54) 54 - -
Leasehold improvements
Cost 15,001 33,848 - - - (44,781) 4,068
Accumulated depreciation - - - - - - -
Total premises and equipment - cost 2,573,486 198,498 - - (75,261) (50,877) 2,645,846
Total premises and equipment - accumulated depreciation (816,447) - (132,236) - 72,858 806 (875,019)
Total premises and equipment -impairment - - - (729) 729 - -
Total premises and equipment, net 1,757,039 198,498 (132,236) (729) (1,674) (50,071) 1,770,827
(1) Computer equipment, mainly: ATMs for COP 36,578, Laptops for COP 34,564, CPU for COP 6,632 and Security camera for COP 3,239.
Furniture and fixtures, mainly: Condensing unit for COP 9,543, Modular System for COP 5,658, Handling unit for COP 5,083, Power plant for COP 4,484, Chiller for COP 3,838 and Cashier station for COP 3,616.
Improvements in other people's properties, mainly Cosmocentro Headquarters Building for COP 4,668, Carrera Primera Branch for COP 2,315, Calle 76 Branch for COP 2,170.
(2) Impairments are related to the process applied for obsolescence, accidents and others, which results in the derecognition of the asset.
(3) Computer equipment, mainly due to obsolescence of ATMs and laptops.
(4) Mainly due to transfer to right-of-use assets for completion of improvements and activation of contracts for COP 41,929, the most significant
improvements being in branches and activation due to termination of improvements of other assets for COP 2,962.


23

Premises and equipment in operating leases Balance at
January 1,
2024		 Roll - forward Balance at
December 31,
2024
Additions(1)
Expenses depreciation(2)
Expenses impairment(2)
 Written off
Movements(3)
In millions of COP
Furniture and fixtures
Cost 2,091 - - - - - 2,091
Accumulated depreciation (614) - (254) - - - (868)
Vehicles
Cost 4,227,271 668,679 - - (142,435) (1,050,206) 3,703,309
Accumulated depreciation (672,254) - (351,398) - 27,517 246,994 (749,141)
Computer equipment
Cost 228,161 73,678 - - (15,015) (21,594) 265,230
Accumulated depreciation (95,638) - (63,251) - 12,730 21,294 (124,865)
Total cost 4,457,523 742,357 - - (157,450) (1,071,800) 3,970,630
Total accumulated depreciation (768,506) - (414,903) - 40,247 268,288 (874,874)
Total premises and equipment in operating leases, net 3,689,017 742,357 (414,903) - (117,203) (803,512) 3,095,756
(1)Purchase of vehicles to include in operating lease contracts mainly with Renting Colombia S.A.S.
(2)Vehicles, corresponds mainly to transfers of assets that ended the lease contract and went to the inventory category for COP 793,352, net and transfers to the portfolio for relocation of assets to Financial Leasing for COP 7,435.

Premises and equipment in operating leases Balance at
January 1,
2024		 Roll - forward Balance at
December 31,
2024
Additions Expenses depreciation Expenses impairment Written off Movements
In millions of COP
Total premises and equipment - cost 7,031,009 940,855 - - (232,711) (1,122,677) 6,616,476
Total premises and equipment - accumulated depreciation (1,584,953) - (547,139) - 113,105 269,094 (1,749,893)
Total premises and equipment -impairment - - - (729) 729 - -
Total premises and equipment, net 5,446,056 940,855 (547,139) (729) (118,877) (853,583) 4,866,583
As of March 31, 2025, there are contractual commitments for the acquisition of assets for COP 4,934, mainly for the purchase of assets related to projects, investment in branches and ATMs, as well as for the change of assets in the data processing center Datacenter Niquia. As of December 31, 2024, there are contractual commitments for the acquisition of equipment for COP 2,664, mainly for improvements in the data processing center Datacenter Niquia and purchases of assets related to branch office projects.
As of March 31, 2025 and December 31, 2024, the Bank has no property and equipment with restricted title, nor guarantees of debts and contractual commitments for the fulfillment of obligations.
As of March 31, 2025 and December 31, 2024, the Bank's assessment indicates that there is no evidence of impairment of the Cash Generating Unit. Therefore, it is not considered necessary to make a formal estimate of the recoverable amount for these assets.
As of March 31, 2025 and December 31, 2024, the value of the property and equipment that is fully depreciated and in use is COP 261,625 and COP 257,886, respectively and corresponds mainly to computer equipment, fixtures and accessories and machinery.
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NOTE 8. INCOME TAX
The income tax is recognized in accordance with current tax regulations.
8.1. Components recognized in the separate Income statement
The following chart provides a detailed breakdown of the total income tax for the periods ended March 31, 2025, and 2024:
March 31, 2025 March 31, 2024
In millions of COP
Current tax
Fiscal term (550,996) (563,661)
Tax validity of foreign branch (281) (361)
Prior fiscal terms (1)
 54,639  63,288 
Total current tax (496,638) (500,734)
Deferred tax    
Fiscal term (2)
 (60,435) 24,803 
Prior fiscal terms (43,426) (56,372)
Total deferred tax (103,861) (31,569)
Total income tax (600,499) (532,303)
(1)Mainly due to the recognition in 2024 of the effects of sentence CE 26739 of January 25 of the same year.
(2)Generated mainly by deferred taxes associated with bonds and allowance for accounts receivable.
8.2. 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 the periods ended March 31, 2025, and 2024:

Reconciliation of the tax rate March 31, 2025 March 31, 2024
In millions of COP
Accounting profit 2,385,089  2,126,197 
Applicable tax with nominal rate (954,035) (850,479)
Non-deductible expenses to determine taxable profit (loss) (32,982) (32,976)
Accounting and non-tax income to determine taxable profit 232,690  230,788 
Fiscal and non-accounting expense (income) to determine taxable profit (loss) (263,606) (60,908)
Ordinary activities income exempt from taxation 361,810  105,448 
Ordinary activities income not constituting income or occasional tax gain 45,037  52,120 
Tax deductions 57,168  31,164 
Tax depreciation surplus 51,235  53,293 
Recovery of deductions (1) (42,329) (17,510)
Prior fiscal terms 11,213  6,916 
Other effects of the tax rate by reconciliation between accounting profit and tax expense (income) (66,700) (50,159)
Total income tax (600,499) (532,303)
(1)The increase corresponds mainly to income from the recovery of deductions generated on the sale of vehicles.
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8.3.Components recognized in the Condensed Interim Statement of Comprehensive Income Separate (OCI).
March 31, 2025
In millions of COP
Amounts before taxes Deferred tax Net taxes
Revaluation gain related to the defined benefit liability -  26  26 
Net loss on financial instruments measured at fair value. (5,231) 3,185  (2,046)
Net loss from investments in subsidiaries accounted for using the equity method (1,126,031) -  (1,126,031)
Net gain on valuation of investments in associates and joint ventures. 98  -  98 
Unrealized loss on cash flow hedge (62) 25  (37)
Net gain on net investment hedge in foreign operations 192,264  (71,154) 121,110 
Net (938,962) (67,918) (1,006,880)
See separate statement of comprehensive income
March 31, 2024
In millions of COP
Amounts before taxes Amounts before taxes Amounts before taxes
Revaluation gain related to the defined benefit liability -  6  6 
Net loss on financial instruments measured at fair value. (4,407) 1,432  (2,975)
Exchange differences 74,844  -  74,844 
Unrealized gain/(loss) on investments in subsidiaries using equity method (8,769) -  (8,769)
Net gain on valuation of investments in associates and joint ventures. 43  -  43 
Loss on net investment hedge in foreign operations (38,075) 16,784  (21,291)
Net 23,636  18,222  41,858 
See separate statement of comprehensive income
8.4.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 Bancolombia Group's economic research records, the expected economic environment for the next five years.
26

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 March 31, 2025
Asset Deferred Tax:        
Employee Benefits 219,010  4,480  26  223,516 
Deterioration assessment 108,913  31,302  -  140,215 
Financial Obligations 184,392  (120,891) -  63,501 
Derivatives Valuation -  7,196  25  7,221 
Net investment coverage in operations abroad 362,784  (33,351) (71,154) 258,279 
Properties received in payment 124,038  151  -  124,189 
Other deductions 167,125  (31,042) -  136,083 
implementation adjustment 90,895    -  90,895 
Total Asset Deferred Tax 1,257,157  (142,155) (71,103) 1,043,899 
Liability Deferred Tax:        
Property and equipment (78,142) (35,976) -  (114,118)
Lease restatement (463,183) 34,518  -  (428,665)
Deterioration assessment (80,494) 80,494  -  - 
Valuation of equity instruments (371,397) (39,618) 3,185  (407,830)
Goodwill (1,567,225)   -  (1,567,225)
Other deductions (84,554) (1,124) -  (85,678)
Total Liability Deferred Tax (2,644,995) 38,294  3,185  (2,603,516)
Net Deferred Tax (1,387,838) (103,861) (67,918) (1,559,617)

8.5.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.
March 31, 2025 December 31, 2024
In millions of COP
Temporary differences
Local Subsidiaries (75,949) (214,304)
Foreign Subsidiaries (18,591,991) (20,176,494)
8.6.Dividends
8.6.1Dividend Payment
Dividends to be distributed by the Bank 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.
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8.6.2Dividends received from Colombian 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.

8.7.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 Bancolombia 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 administration's judgment may differ from that applied by Bancolombia 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, Bancolombia did not recognize uncertain tax positions in its financial statements.
8.8. Tax contingent liabilities and assets
The Bank 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 9. DEPOSITS BY CUSTOMERS
Details of customer deposits as of March 31, 2025 and December 31, 2024 are as follows:
March 31, 2025 December 31, 2024
In millions of COP
Saving accounts 93,827,457 94,644,219
Time deposits (1) (2)
 67,201,158 63,637,941
Checking accounts 19,355,612 21,124,420
Other deposits 4,790,997 6,394,493
Total (3)
 185,175,224 185,801,073
(1) Increase generated mainly in CDT´s with terms between 6 and 12 months.
(2 ) Includes the effect of the adjustment to the item covered by fair value hedge accounting, which amounts to COP 2,261 and COP 963 as of March 31, 2025 and December 31, 2024, respectively.
(3) As of March 31, 2025 and December 31, 2024, Nequi deposits of COP 4,366,164 and COP 4,449,420 are included, respectively.
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The following table details the time deposits issued by the Bank:
CDT Effective interest rate March 31, 2025
Modality Minimum Maximum Carrying Value
Less than 6 months 0.10% 9.90% 24,530,323
Between 6 months and 12 months 4.55% 10.80% 14,661,314
Between 12 months and 18 months 4.85% 13.15% 7,595,202
Greater than 18 months 3.30% 17.00% 20,414,319
Total     67,201,158
CDT Effective interest rate December 31, 2024
Modality Minimum Maximum Carrying Value
Less than 6 months 0.10% 10.60% 24,962,895
Between 6 months and 12 months 4.60% 12.00% 9,423,320
Between 12 months and 18 months 5.00% 14.35% 7,310,170
Greater than 18 months 3.30% 17.65% 21,941,556
Total     63,637,941
The maturity details of the Term Deposits issued by the Bank as of March 31, 2025 and december of 2024 are as follows:
March 31, 2025 December 31, 2024
In millions of COP
Less than 1 year 52,014,776 47,346,967
Between 1 and 3 years 4,393,999 5,400,904
Between 3 and 5 years 1,474,555 1,085,237
Greater than 5 years 9,317,828 9,804,833
Total 67,201,158 63,637,941
NOTE 10. REPURCHASE AGREEMENTS
The following table sets forth information regarding the money market operations recognized as liabilities in Statement of Financial Position of March 31, 2025 and December 31, 2024:
March 31, 2025 December 31, 2024
Repos and reverse repos
Simultaneous operations(1)
 948,075 481,111
short term operations 73,520 147,372
Total repo liabilities(2)
 1,021,595 628,483
Total repo 1,021,595 628,483
(1)The variation is mainly generated by repos in simultaneous operations with the Central Counterparty Risk Clearing House.
(2)Total repo liabilities have a maturity of less than one month..
Offsetting of Repurchase and Resale Agreements
For the Bank substantially all repurchase and resale activities are transacted under legally enforceable repurchase agreements that give the Bank, in the event of default by the counterparty, the right to liquidate securities held with the same counterparty.
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The Bank does not offset repurchase and resale transactions with the same counterparty in the statement of financial position.
The table below presents repurchases and resale transactions included in the statement of financial position as of March 31, 2025 and December 31, 2024:
March 31, 2025
In millions of COP
Assets /
liabilities gross		 Financial
instruments as
collaterals		 Assets /
liabilities
net
Securities purchased under resale agreements(1)
 3,353,027  (3,353,027) - 
Securities sold under repurchase agreements (1,021,595) 1,021,595  - 
Total repurchase and resale agreements 2,331,432  (2,331,432) - 
December 31, 2024
In millions of COP
Assets /
liabilities gross		 Financial
instruments as
collaterals		 Assets /
liabilities
net
Securities purchased under resale agreements(1)
 5,613,041  (5,613,041) - 
Securities sold under repurchase agreements (628,483) 628,483  - 
Total repurchase and resale agreements 4,984,558  (4,984,558) - 
(1) See Note 3. Cash and cash equivalents.
NOTE 11. BORROWINGS FROM OTHER FINANCIAL INSTITUTIONS
The composition of financial obligations measured at amortized cost as of March 31, 2025 and December 2024, is as follows
March 31, 2025 December 31, 2024
In millions of COP
Obligations granted by foreign banks(1)
 4,822,910 6,555,063
Obligations granted by domestic banks 4,137,840 4,002,801
Total 8,960,750 10,557,864
(1)In the first quarter of 2025, prepayments were made to Bank Of New York Mellon NY, Caixa Bank and BCI Chile.
Obligations granted by foreign banks
Financial institution Rate minimum Rate maximum March 31, 2025
In millions of COP
Financing with Correspondent Banks 5.87% 7.12% 4,822,910 
Total     4,822,910 
Financial institution Rate minimum Rate maximum December 31, 2024
In millions of COP
Financing with Correspondent Banks 5.45% 7.45% 6,555,063 
Total     6,555,063 

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The contractual maturities of financial obligations with foreign entities are as follows:
March 31, 2025 December 31, 2024
In millions of COP
Short term (less than 1 year) 3,497,823  3,150,200 
Long term (more than 1 year) 1,325,087  3,404,863 
Total 4,822,910  6,555,063 
Obligations granted by domestic banks
Financial institution Rate minimum Rate maximum March 31, 2025
In millions of COP
Financiera de Desarrollo Territorial (FINDETER) 4.15% 17.42% 2,480,215 
Fondo para el Fomento del Sector Agropecuario (FINAGRO) 5.09% 12.28% 1,310,950 
Banco de Comercio Exterior de Colombia (BANCOLDEX) 2.17% 17.56% 346,675 
Total     4,137,840 
Financial institution Rate minimum Rate maximum December 31, 2024
In millions of COP
Financiera de Desarrollo Territorial (FINDETER) 4.15% 17.21% 2,239,644 
Fondo para el Fomento del Sector Agropecuario (FINAGRO) 5.09% 13.59% 1,363,891 
Banco de Comercio Exterior de Colombia (BANCOLDEX) 2.17% 17.50% 399,266 
Total     4,002,801 
The maturities of financial obligations with domestic banks, are as follows:
March 31, 2025 December 31, 2024
In millions of COP
Short term (less than 1 year) 184,985  125,568 
Long term (more than 1 year) 3,952,855  3,877,233 
Total 4,137,840  4,002,801 
As of March 31, 2025 and December 31, 2024, there were some financial covenants, mainly regarding capital adequacy ratios, past due loans and allowances. None of these covenants had been breached nor were the related obligations past due.
NOTE 12. OTHER LIABILITIES
The following is a detail of other liabilities as of March 31, 2025, and December 31, 2024 are presented below:
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March 31, 2025 December 31, 2024
In millions of COP
Dividends (1)
 3,766,931 865,387
Payables 2,703,632 2,849,007
Suppliers 1,308,048 1,669,077
Deferred income 536,892 552,620
Salaries and other labor obligations 423,295 335,761
Surplus to be applied 344,178 324,830
Collection services 339,767 453,541
Deposits delivered as security 282,114 371,426
Bonuses and short-term benefit (2)
 175,069 461,139
Advances in leasing operations 152,890 173,168
Withholdings and labor contributions 132,900 479,416
Provisiones 112,501 117,616
Liabilities from contracts with customers (3)
 44,184 47,863
Credits for factoring operations 12,272 59,478
Others 21,110 21,831
Total 10,355,783 8,782,160
(1)Dividends payable corresponding to the distribution of profits for the year 2024, decreed in March 2025. See Statement of Changes in Equity, Dividend Distribution.
(2)Decrease explained by the payment of the SVA bonus as of March 2025.
(3)See Note 15.3.1. Income from commissions and other services, in the details of accounts receivable balances and liabilities from customer contracts.

NOTE 13. PROVISIONS AND CONTINGENT LIABILITIES
Judicial proceedings
Details of provisions and contingent liabilities as of December 31, 2024, are included in the annual report of the 2024 separate financial statements, for the three months period ending March 31, 2025, there is no relevant information on changes in provisions and contingent liabilities.
NOTE 14. APPROPRIATED RESERVES
As of March 31, 2025, and December 31, 2024, the reserves were as follows:
March 31, 2025 December 31, 2024
In millions of COP
Appropriation of net income (1) (2)
 14,208,957 14,208,820
Occasional reserve (3)
 10,549,607 8,689,362
Reserve for social benefit projects (4)
 34,000 0
Total appropiated reserves (5)
 24,792,564 22,898,182
(1)In compliance with the article 452 of the Commercial Code of the Republic of Colombia, which establishes that corporations shall constitute a legal reserve amounting to at least fifty percent of the subscribed capital, formed with ten percent of the net profits of each fiscal year. The constitution of such reserve will be mandatory until it reaches fifty percent of the subscribed capital. (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 March 31, 2025, and December 31, 2024, includes reclassification of unclaimed dividends under the article 85 of the Bank's Bylaws for COP 137 and COP 506, respectively.
(3)The change corresponds to the occasional reserve for equity strengthening and future growth, approved by the General Shareholders' Meeting on March 14, 2025.
(4)Occasional reserve available to the Board of Directors for donations to social benefit projects, approved by the General Shareholders' Meeting on March 14, 2025.
(5) See separate statement of changes in shareholders' equity.
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NOTE 15. OPERATING INCOME
Below is the information corresponding to operating income and expenses for the three-month period ending March 31, 2025 and 2024:
15.1 Interest and valuation on financial instruments
The following table sets forth the detail of total interest income and valuation of investment securities for the period ended March 31, 2025 and 2024, included in the net margin calculation:
Interest and valuation on financial instruments March 31, 2025 March 31, 2024
In millions of COP
Interest on debt securities through OCI 85,702  91,524 
Debt securities held to maturity 71,382  78,797 
Total interest on debt instruments measured by the effective interest method 157,084  170,321 
Net income from activities measured at fair value through income statement
Debt securities (1)
 244,202  195,891 
Spot transactions 16,232  (9,674)
Hedging derivatives (3,637) – 
Money market transactions (10,538) 107,186 
Derivatives (2)
 (42,609) 7,118 
Total activities measured at fair value through income statement, net 203,650  300,521 
Total interest and valuation of investments 360,734  470,842 
(1) Variation generated mainly by the increase presented by the valuation of the TES COP 145,912 and decrease in the profit on sale of the TES COP 13,813. Decrease in the valuation of the foreign currency portfolio for COP 61,732, as well as a decrease of COP 17,035 in the valuation and profit on sale of the TES UVR.
(2) Variation presented mainly due to the compensation against the notional bond futures in the amount of COP 45,316.
15.2 Interest expenses
The following table sets forth the detail of interest on financial liability instruments for the period ended March 31, 2025 and 2024:
Interest expenses March 31, 2025 March 31, 2024
In millions of COP
Deposits (1)
2,150,536  2,643,186 
Financial obligations (1)
 183,689  287,185 
Debt securities issued (bonds) 165,961  238,381 
Lease liabilities 26,154  28,550 
Preferred share 14,837  14,837 
Interbank deposits purchased 2,539  486 
Other interest 10,087  11,852 
Interest expenses 2,553,803  3,224,477 
(1)The intervention rate issued by the Bank of the Republic went from 13.00% at the beginning of 2024 to 9.50% in 2025, this has an impact on the CDT deposit collection operation rates.

Net interest income defined as: Interest on loan portfolio and financial leasing operations, interest on debt instruments measured by the effective interest method and interest expense amounted to COP 3,615,062 and COP 3,875,182 as of March 31, 2025 and March 31, 2024, respectively.
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15.3 Fees and commissions
15.3.1 Income from fees and commissions
The Bank has elected to present the income from contracts with customers as an element in a line named “Fees and commissions income” in the consolidated statement of income separated 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 Bank generates revenue from contracts with customers is presented:
Fees and Commissions Description
Debit and credit cards 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.
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.
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.
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.
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.
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.
Payments Service in which the Bank's customers can automatically perform whereby transactional channels, banking transactions for payroll payments, cancellation of invoices and credits, to beneficiaries of the Bank, as well as other financial entities affiliated to Automated Clearing House ACH, the commitment is satisfied once the Bank performs the transaction. The rate stipulated for this commission is variable, the income is recognized at a given time and acts as principal.
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Fees and Commissions Description
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.
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.
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.
Letters of credit Banking service corresponding to a documentary credit in which the Bank acquires the commitment to guarantee the fulfillment of financial, commercial or service obligations to a supplier of the contracting party, called beneficiary, in import or export operations through a correspondent bank. The consideration in this type of contract may include fixed amounts, variable amounts, or both, and is acted as principal.
Acceptances, guarantees and standby letters of credit Bank service of acceptances guarantees and standby letters of credit that are not part of the Bank's portfolio. There are different performance obligations; the satisfaction of performance obligations occurs when the service is rendered to the customer. The consideration in these types of contracts may include fixed amounts, variable amounts, or both, and the Bank acts as principal. Revenue is recognized at a point in time.
Checks Service through which the Bank offers its customers alternatives to avoid the risk of mobilizing cash, through the sale of domestic checks that can be exchanged in any place where the Bank has a presence. The consideration in this type of contract is fixed, the income is recognized at a determined time and acts as principal.
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.
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. For a detail of the balance see Note 15.4. Other operating income, net
The following table represents in detail and categorized by nature the fees and commissions for the three months periods ended March 31, 2025 and 2024:
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Income from fees and commissions:
Income from fees and commissions March 31, 2025 March 31, 2024
In millions of COP
Debit and credit cards and affiliated establishments 689,413 663,874
Bancassurance (1)
 211,235 192,503
Electronic services and ATMs (2)
 141,508 113,170
Collections 131,018 119,898
Payment (3)
 129,901 117,194
Acceptances, guarantees and Standby Letters of Credit and commissions for operations in foreign currencies 52,864 44,732
Banking services 38,751 34,556
Placements 15,046 14,707
Cheks 5,221 4,872
Others 17,702 16,274
Total income from fees and commissions 1,432,659 1,321,780
(1)Increase generated by higher fees for collection services.
(2)Increase generated by digital banking fees.
(3)Increase in Bancolombia automatic payment transaction rates (PAB).
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 the Bank 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.
Contract assets with customers
The Bank receives payments from customers based on the provision of the service, in accordance to that established in the contracts. When the Bank 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. As a practical measure, the Bank recognizes as an expense the incremental costs of obtaining a contract when the amortization period of the asset is equal to or less than one year.
Contract liabilities with customers
The contract liabilities constitute the obligation of the Bank to transfer the services to a customer, for which the Bank 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.
The following table shows the detail of the balances of accounts receivable and liabilities from contracts with customers, As of March 31, 2025 and December 31, 2024:
March 31, 2025 December 31, 2024
In millions of COP
Accounts receivable from contracts with clients (1)
 167,997 170,397
Liabilities from contracts with clients (2)
 44,184 47,863
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(1)The impairment corresponding to accounts receivable from contracts with customers is COP 23,646 y COP 24,017 as of March 31, 2025 and December 31, 2024, respectively.
(2)See Note 12. Other liabilities.
15.3.2 Fees and Commissions Expenses
Fees and Commissions Expenses March 31, 2025 March 31, 2024
In millions of COP
Banking services (1)
 270,198 231,329
Sales, collections and other services (2)
 242,823 214,296
Correspondent banking (1)
 149,546 107,462
ACH y PSE services (1)
 44,572 37,452
Payments and collections 12,743 8,927
Placements 12,061 17,985
Other (3)
 44,675 23,484
Total expenses for fees and commissions 776,618 640,935
Total income for fees and commissions, net 656,041 680,845

(1)Increase due to increased transaction volume generated during 2025.
(2)Increase due to increased demand for customer service via telephone channels (contact center services) and increased collection management.
(3) The increase is primarily generated by payments to PayPal, corresponding to the commission for transfers made by Nequi customers through this platform to the correspondent bank.
15.4. Other operating income, net
Other operating income, net, consists of the following items for the period ended as of March 31, 2025 and 2024:
Other operating income, net March 31, 2025 March 31, 2024
In millions of COP
Operating leases (1)
 210,423  255,481 
Exchange difference and foreign exchange derivatives net (2)
 191,404  11,831 
Gain on sale of assets held for sale and inventories (3)
 33,473  2,540 
Recoveries 27,401  17,848 
Leases 24,482  18,246 
Profit on sale of assets held for sale and inventories 16,525  31,171 
Gain on sale of assets - Financial leasing 2,183  42 
Gain on sale of property and equipment 1,231  877 
Penalties for noncompliance with leasing contracts 507  520 
Other 10,915  19,041 
Total other operating income, net 518,544  357,597 
(1)Decrease generated by lower activations of operating lease contracts.
(2)Variation generated by the fluctuation of the peso against the dollar in 2025.
(3)Variation mainly reflected in profits from vehicle sales.
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15.5. Equity investment income
The following table shows the detail of equity investment income for the period ended March 31, 2025 and 2024:
Dividends and other net income for equity investments. March 31, 2025 March 31, 2024
In millions of COP
Equity method (1)(2)
 536,544 566,881
Valuation and sale of equity investments (3)
 11,383 1,210
Dividends (4)
 3,592 2,673
Total dividends and other net income for equity investments. 551,519 570,764
(1)For more information related to the equity method, see Note 6. Investments in Subsidiaries.
(2)The balance as of March 31, 2025, includes the equity method of subsidiary investments for COP 522,355, for associates COP 9,301 and joint ventures COP 4,888. The balance as of March 31, 2024 includes the equity method of subsidiary investments for COP 573,203 and for associates and joint ventures for COP ($6,322).
(3)In November 2024, the Bank recognized as a financial instrument the FCP Pactia Inmobiliario, at March 31, 2025 its valuation amounts to COP 11,212.
(4)Dividends received from equity instruments as of March 31, 2025 correspond to Credibanco S.A. for COP 1,905, Cámara de Riesgo Central de Contraparte S.A. for COP 1,335, Bladex for COP 185 and Servibanca S.A. for COP 167 and as of March 31, 2024 correspond to: Cámara de Riesgo Central de Contraparte de Colombia S.A. for COP 1,203; Credibanco S.A. for COP 1,193; Servibanca S.A. for COP 140 and Bladex for COP 137.
NOTE 16. OPERATING EXPENSES
The information corresponding to operating expenses as of March 31, 2025, and 2024 is as follows:
16.1. Salaries and employee benefit
The detail of salaries and employee benefits for the periods ended March 31, 2025, and 2024, is as follows:
Salaries and employee benefit March 31, 2025 March 31, 2024
In millions of COP
Salaries(1)
 405,988 372,517
Bonuses(2)
 168,510 82,671
Private premium 142,840 145,129
Social security contributions 137,976 127,518
Indemnization payment 27,389 37,029
Defined Benefit severance obligation and interest 41,654 40,849
Vacation expenses 26,153 23,915
Pensión plan 2,754 2,961
Others(3)
 72,800 65,817
Total salaries and employee benefit 1,026,064 898,406
    
(1)The variation corresponds mainly to salary increases for statutory employees and employees who belong to the Collective Bargaining Agreement.
(2)Corresponds mainly to bonuses for the Bank's employees in accordance with the variable compensation model of the Bancolombia Group.
(3)Includes employee benefits, mainly policies, training and recreation.
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16.2. Other administrative and general expenses
The Details of other administrative and general expenses for the period ended March 31, 2025, and 2024, is as follows:
Other administrative and general expenses March 31, 2025 March 31, 2024
In millions of COP
Fees 146,562  131,377 
Insurance (1)
 141,279  125,215 
Data processing (2)
 117,032  87,509 
Maintenance and repairs 116,871  98,461 
Fraud and claims (3)
 100,066  73,341 
Transportation 51,867  46,786 
Advertising 21,250  16,236 
Contributions and memberships 20,616  18,589 
Cleaning and security services 20,332  18,875 
Communications 20,001  18,956 
Supplies and stationery 16,952  15,854 
Utilities 13,590  17,026 
Adjustment and installation 10,680  8,725 
Property management 10,303  9,157 
Litigation, fines, and penalties 5,685  13,140 
Travel expenses 4,741  3,641 
Warehousing services 4,545  4,669 
Financial auditor and board of directors fees 3,802  3,074 
Transactional services 2,140  2,194 
Temporary services 2,009  1,053 
Other 51,772  36,880 
Total other administrative and general expenses 882,095  750,758 
Taxes other than income tax (4)
 289,377  319,812 
(1)The increase is mainly generated by Fogafin's deposit insurance due to an increase in the volume of deposits.
(2)Increase generated mainly by higher spending on technology services.
(3)Increase generated by fraud losses such as: Smishing social engineering.
(4)The accumulated decrease as of March 2025 is mainly generated in industry and commerce taxes for COP 15,067 and VAT for COP 14,417.
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16.3. Impairment, depreciation and amortization
Details of amortization, depreciation and impairment expense for the six-month period ended June 30, 2024, and for the three-month from April 1 to the June 30,2024 and 2023, is as follows:
Impairment, depreciation and amortization March 31, 2025 March 31, 2024
In millions of COP
Depreciation of premises and equipment (1)
 135,095 143,285
Impairment of marketable assets, non- marketable assets, and other assets, net 43,232 40,977
Depreciation of right-of-use assets, on lease 34,432 31,792
Amortization of intangible assets 21,923 15,541
Impairment of right-of-use assets, on lease 1009 1
Impairment of premises and equipment (1)
 224 162
Total impairment, depreciation and amortization 235,915 231,758
(1) See note 7. Premises and equipment, net.
NOTE 17. RELATED PARTY TRANSACTIONS
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, the Bank 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.
Details of related party transactions as of December 31, 2024 are included in the annual report of the 2024 separate financial statements, for the three months ended March 31, 2025, there were no related party transactions that materially affected the Bank's financial position or results of operations.
NOTE 18. LIABILITIES FROM FINANCING ACTIVITIES
The following table presents the reconciliation of the balances of liabilities from financing activities as of March 31, 2025:
Balance as of January 1, 2025 Cash flows Non-cash changes Balance as of March 31, 2025
Foreign
currency
translation
adjustment		 Interests accrued
En millones de pesos colombianos
Liabilities from financing activities
Borrowings from other financial institutions 10,557,864 (1,463,984) (316,820) 183,689 8,960,749
Debt instruments in issue 7,801,008 (157,778) (270,403) 165,961 7,538,788
Preferred shares 628,483 393,113 - - 1,021,596
Interbank and repurchase agreements (1)
 584,204 (57,701) - 14,837 541,340
Total liabilities from financing activities 19,571,559 (1,286,350) (587,223) 364,487 18,062,473
(1)The cash flow COP 57,701 corresponds to the minimum dividends paid to preferred shareholders and is included in the statement of cash flows in the line "dividends paid", which includes the total dividends paid during the year to preferred and common shareholders.
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NOTE 19. 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
The valuation to fair value prices is performed using prices, methodologies and inputs provided by the official pricing services provider (Precia) to the Bank.
All methodologies and procedures developed by the pricing services provider are supervised by the SFC, which has its authorization.
The following table shows the carrying value and fair value of assets and liabilities as of March 31, 2025, and December 31, 2024:
March 31, 2025 December 31, 2024
Carrying value Fair value Carrying value Fair value
In millions of COP
Assets
Debt securities negotiable investments and pledged financial assets (1)
 12,548,560 12,548,560 13,866,824 13,866,824
Debt securities available for sale investments (1)
 3,399,644 3,399,644 3,326,813 3,326,813
Debt securities held to maturity investments, net (1)
 4,328,117 4,309,522 4,117,051 4,095,270
Equity instruments (1)
 458,943 464,907 445,356 454,423
Derivative financial instruments (1)
 2,520,831 2,520,831 2,924,434 2,924,434
Loans and leasing transactions (2)
 183,052,093 188,229,498 178,098,539 185,329,424
Investment property 846,853 846,853 846,853 846,853
Total assets 207,155,041 212,319,815 203,625,870 210,844,041
Liabilities
Deposits by customers (3)
 185,175,224 185,214,783 185,801,073 186,106,658
Repurchase agreements and other similar secured borrowing (4)
 1,021,595 1,021,595 628,483 628,483
Derivative financial instruments (1)
 2,509,980 2,509,980 2,667,439 2,667,439
Borrowings from other financial institutions (5)
 8,960,750 8,960,750 10,557,864 10,557,864
Debt instruments in issue
 7,538,788 7,767,434 7,801,008 8,006,510
Preferred shares 541,340 359,634 584,204 407,174
Total liabilities 205,747,677 205,834,176 208,040,071 208,374,128
(1)See Note 4.1. Investment financial instruments and derivatives.
(2)See Note 5. Loan portfolio and financial leasing operations, net.
(3)See Note 9. Deposits by customers.
(4)See Note 10. Repurchase agreements.
(5)See Note 11. Borrowings from other financial institutions.

Fair value measurement
Assets and liabilities
a.Debt instruments
The Bank assigns prices to these debt investments, using the prices provided by the official pricing service provider (Precia) and assigns the appropriate level according to the procedure described at the beginning of this note. For securities not traded or over the counter such as certain bonds issued by other financial institutions, the Bank 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.
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The interest rate is generally computed using observable market data and reference yield curves derived from quoted interest in appropriate time intervals, which match the timings of the cash flows and maturities of the instruments.
b.Equity securities
The Bank 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 at the beginning of this note. Likewise, in order to determine the fair value of unquoted equity securities, the Bank affects the value of the investment in the corresponding percentage of participation, to the subsequent variations of the respective issuer's equity. Holdings in mutual funds, trusts and collective portfolios are valued taking into account the value of the holding as calculated by the management company.
c.Derivative financial instruments
The Bank holds positions in standardized derivatives, such as futures over local stocks, and over the representative exchange 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 Bank 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 Financial Superintendence of Colombia.
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 Bank 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.
Counterparty credit-risk adjustments are applied to derivatives when the Bank's position is a derivative asset and the Bank’s credit risk is incorporated when the position is a derivative liability. The Bank attempts to mitigate credit risk to third parties which are international banks by entering into master netting agreements. The agreements allow to offset or bring net amounts that are liabilities, derivatives 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 Bank 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 Colombia. The Bank also considers its own creditworthiness when determining the fair value of an instrument, including OTC derivative instruments if the Bank believes market participants would take that into account when transacting the respective instrument.
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The approach to measuring the impact of the Bank'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 Bank in foreign currency.
For derivatives transacted with local financial institutions, the Bank calculates the credit risk adjustment by incorporating credit risk data provided by rating agencies and released in the Colombian financial market.
e.Impaired loans measured at fair value
The Bank 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 Bank 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.
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.
f.Assets held for sale measured at fair value less cost of sale
The Bank 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 Bank invests in asset-backed securities for which underlying assets are mortgages and earnings under contracts issued by financial institutions and corporations, respectively. The Bank 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.
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TIPS are part of the Bank 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.
h.Investment property
The Bank's investment property is valued by external experts, who use valuation techniques based on comparable prices, direct capitalization, discounted cash flows and replacement costs.
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 securitization, 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.
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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 at March 31, 2025 and December 31, 2023:
ASSETS
Type of instrument March 31, 2025 December 31, 2024
Fair value hierarchy Total fair value Fair value hierarchy Total fair value
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
In millions of COP
Investment securities
Negotiable and pledged financial assets
Treasury securities issued by the Colombian Government - TES 9,021,451 826,117 - 9,847,568 10,329,620 961,960 - 11,291,580
Mortgage-backed securities (TIPS) - 56,373 67,257 123,630 - 79,665 63,280 142,945
Bonds 2,020,956 204,033 28,790 2,253,779 1,844,920 227,742 44,062 2,116,724
Other financial investment assets - 323,583 - 323,583 - 315,575 - 315,575
Total negotiable securities and pledged financial assets 11,042,407 1,410,106 96,047 12,548,560 12,174,540 1,584,942 107,342 13,866,824
Available for sale
Solidarity Securities issued by the Colombian Government (TDS) - - 2,706,437 2,706,437 - - 2,648,355 2,648,355
Bonds - 84,021 50,634 134,655 - 51,275 81,784 133,059
Other public debt - - 558,552 558,552 - - 545,399 545,399
Total available for sale - 84,021 3,315,623 3,399,644 - 51,275 3,275,538 3,326,813
Total debt securities 11,042,407 1,494,127 3,411,670 15,948,204 12,174,540 1,636,217 3,382,880 17,193,637
Equity instruments
Equity instruments at fair value 10,839 - 436,942 447,781 11,080 23,707 402,510 437,297
Total equity instruments 10,839 - 436,942 447,781 11,080 23,707 402,510 437,297
Derivative financial instruments
Forward
Exchange rate - 854,615 288,469 1,143,084 - 608,625 465,512 1,074,137
Securities - 728 45,888 46,616 - 298 51,347 51,645
Total forward - 855,343 334,357 1,189,700 - 608,923 516,859 1,125,782
Swaps
Exchange rate - 894,741 132,073 1,026,814 - 1,200,777 262,479 1,463,256
Interest rate 97,446 93,956 21,393 212,795 105,560 111,966 15,493 233,019
Total swaps 97,446 988,697 153,466 1,239,609 105,560 1,312,743 277,972 1,696,275
Options
Exchange rate 748 39,439 51,335 91,522 161 36,206 66,010 102,377
Total options 748 39,439 51,335 91,522 161 36,206 66,010 102,377
Total derivative financial instruments 98,194 1,883,479 539,158 2,520,831 105,721 1,957,872 860,841 2,924,434
Investment property
Buildings - - 846,853 846,853 - - 846,853 846,853
Total investment properties - - 846,853 846,853 - - 846,853 846,853
Total 11,151,440 3,377,606 5,234,623 19,763,669 12,291,341 3,617,796 5,493,084 21,402,221
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LIABILITIES
Type of instrument March 31, 2025 December 31, 2024
Fair value hierarchy Total fair value Fair value hierarchy Total fair value
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
In millions of COP
Financial liabilities
Forward
Exchange rate - 975,110 51,295 1,026,405 - 876,502 87,033 963,535
Securities - 1,718 2,213 3,931 - 89 1,278 1,367
Total forward - 976,828 53,508 1,030,336 - 876,591 88,311 964,902
Swaps
Exchange rate - 1,051,343 57,105 1,108,448 - 1,264,594 67,838 1,332,432
Interest rate 95,384 159,212 606 255,202 102,701 157,276 27,646 287,623
Total swaps 95,384 1,210,555 57,711 1,363,650 102,701 1,421,870 95,484 1,620,055
Options
Exchange rate 833 115,161 - 115,994 421 82,061 - 82,482
Total options 833 115,161 - 115,994 421 82,061 - 82,482
Total derivative financial instruments 96,217 2,302,544 111,219 2,509,980 103,122 2,380,522 183,795 2,667,439
Total financial liabilities 96,217 2,302,544 111,219 2,509,980 103,122 2,380,522 183,795 2,667,439
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 the Bank's assets and liabilities that are not measured at fair value in the statement of financial position, however, the fair value as of March 31, 2025 and December 31, 2024 is disclosed:
ASSETS
Type of instrument March 31, 2025 December 31, 2024
Fair value hierarchy Total fair value Fair value hierarchy Total fair value
Level 1 Level 2 Level 3 Nivel 1 Nivel 2 Nivel 3
In millions of COP
Investments to maturity
Agricultural Development Securities issued by the Colombian Government (TDA) - - 3,547,042 3,547,042 - - 3,326,903 3,326,903
Mortgage-backed securities (TIPs) - - - - - - - -
Other financial investment instruments - 46,155 716,325 762,480 - 46,272 722,095 768,367
Total held to maturity investments - 46,155 4,263,367 4,309,522 - 46,272 4,048,998 4,095,270
Equity securities - - 17,126 17,126 - - 17,126 17,126
Loan portfolio and leasing operations, net Total - - 188,229,498 188,229,498 - - 185,329,424 185,329,424
Total - 46,155 192,509,991 192,556,146 - 46,272 189,395,548 189,441,820
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LIABILITIES
Type of instrument March 31, 2025 December 31, 2024
Fair value hierarchy Total fair value Fair value hierarchy Total fair value
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
In millions of COP
Deposits by customers - 63,900,355 121,314,428 185,214,783 - 60,972,074 125,134,584 186,106,658
Repurchase agreements and other similar secured borrowing - - 1,021,595 1,021,595 - - 628,483 628,483
Borrowings from other financial institutions - - 8,960,750 8,960,750 - - 10,557,864 10,557,864
Debt instruments in issue 5,668,129 1,212,524 886,781 7,767,434 5,802,976 968,406 1,235,128 8,006,510
Preferred shares - - 359,634 359,634 - - 407,174 407,174
Total 5,668,129 65,112,879 132,543,188 203,324,196 5,802,976 61,940,480 137,963,233 205,706,689
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 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 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.
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 and interest bearing. Subsequently, the cash flows were discounted using reference curves formed by the weighted average of the Bank’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 Bank’s creditworthiness.
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Preferred shares
In the valuation of the liability component of preferred shares related to the minimum dividend of 1% of the subscription price, the Bank 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 Bank and growth at a constant rate considering the Bank’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 suchs 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 Bank 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:
March 31, 2025 December 31, 2024
Fair value hierarchy Total fair value Fair value hierarchy Total fair value
Level 1 Level 2 Level 1 Level 1 Level 2 Level 3
In millions of COP
Real estate different from residential properties - - 1,480 1,480 - - 1,659 1,659
Real estate for residential purposes - - 147 147 - - 28 28
Movable property - - 3,627 3,627 - - 4,037 4,037
Total - - 5,254 5,254 - - 5,724 5,724
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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 March 31, 2025 and December 31, 2024:
As of March 31, 2025
Balance,
January 1,
2025
Included
in
earnings
 OCI Purchases Settlement Prepaids
Reclassifications (1)
Transfers
in to
level 3
Transfers
in to
level 3
 Balance March 31, 2025
In millions of COP
Assets
Debt securities
Investments negotiable
Mortgage backed securities (TIPs) 63,280 (826) - - - - - 4,803 - 67,257
Bonds 44,062 308 - - (12,615) - - - (2,965) 28,790
Other financial investment assets - - - - - - - - - -
Total negotiable investments 107,342 (518) - (12,615) - - 4,803 (2,965) 96,047
Solidarity Securities issued by the Colombian Government (TDS) 2,648,355 58,082 - - - - - - - 2,706,437
Bonds 81,784 890 - - - - - - (32,040) 50,634
Other public debt 545,399 13,153 - - - - - - - 558,552
Total available for sale investments 3,275,538 72,125 - - - - - - (32,040) 3,315,623
Total debt securities 3,382,880 71,607 - - (12,615) - - 4,803 (35,005) 3,411,670
Derivative financial instruments
Exchange rate 794,001 (31,769) - 187,145 (393,301) - (17,904) 99,313 (165,608) 471,877
Interest rate 15,493 (1,986) - 7,231 (133) - (36) 931 (107) 21,393
Securities 51,347 - - 45,888 (51,347) - - - - 45,888
Total derivative financial instruments 860,841 (33,755) - 240,264 (444,781) - (17,940) 100,244 (165,715) 539,158
Equity investments at fair value 402,510 11,336 941 - - - - 22,155 - 436,942
Investment property 846,853 - - - - - - - - 846,853
Total assets 5,493,084 49,188 941 240,264 (457,396) - (17,940) 127,202 (200,720) 5,234,623
Liabilities
Derivative financial instruments
Exchange rate 154,871 (10,925) - 56,232 (69,422) - (17,904) 7,216 (11,668) 108,400
Interest rate 27,646 (13) - - (580) - (36) 112 (26,523) 606
Securities 1,278 - - 2,213 (1,278) - - - - 2,213
Total derivative financial instruments 183,795 (10,938) - 58,445 (71,280) - (17,940) 7,328 (38,191) 111,219
Total assets 183,795 (10,938) - 58,445 (71,280) - (17,940) 7,328 (38,191) 111,219
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As of December 31, 2024
Balance,
January 1,
2024
Included
in
earnings
 OCI Purchases Settlement Prepaids
Reclassifications (1)
Transfers
in to
level 3
Transfers
in to
level 3
 Balance December 31, 2024
In millions of COP
Assets
Debt securities
Investments negotiable
Mortgage backed securities (TIPS) 74,087 (920) - - (7,515) - - 3,195 (5,567) 63,280
Bonds 14,284 520 - 12,814 - - - 16,444 - 44,062
Total negotiable investments 88,371 (400) - 12,814 (7,515) - - 19,639 (5,567) 107,342
Available for- sale investments
Solidarity Securities issued by the Colombian Government (TDS) 2,664,295 - - 2,648,355 (2,664,295) - - - - 2,648,355
Bonds - - - 81,784 - - - - - 81,784
Other public debt - - - 41,369 - - - 504,030 - 545,399
total available for sale investments 2,664,295 - - 2,771,508 (2,664,295) - - 504,030 - 3,275,538
Total debt securities 2,752,666 (400) - 2,784,322 (2,671,810) - - 523,669 (5,567) 3,382,880
Derivative financial instruments
Exchange rate 1,380,991 (45,871) - 590,691 (1,190,120) - (11,487) 155,582 (85,785) 794,001
Interest rate 15,621 (2,591) - 6,910 (3,606) - (139) 3,909 (4,611) 15,493
Securities 2,863 - - 51,347 (2,863) - - - - 51,347
Total derivative financial instruments 1,399,475 (48,462) - 648,948 (1,196,589) - (11,626) 159,491 (90,396) 860,841
Equity securities at fair value 140,815 44,851 2,975 232,387 - (18,516) - - (2) 402,510
Investment property 574,550 68,536 - 203,767 - - - - - 846,853
Total assets 4,867,506 64,525 2,975 3,869,424 (3,868,399) (18,516) (11,626) 683,160 (95,965) 5,493,084
Liabilities
Derivatives
Exchange rate 170,798 48,127 - 114,412 (95,051) - (11,487) 3,193 (75,121) 154,871
Interest rate 11,078 (50) - 206 (4,595) - (137) 27,432 (6,288) 27,646
Securities 1,852 - - 1,278 (1,852) - - - - 1,278
Total derivatives 183,728 48,077 - 115,896 (101,498) - (11,624) 30,625 (81,409) 183,795
Total assets 183,728 48,077 - 115,896 (101,498) - (11,624) 30,625 (81,409) 183,795
(1) Reclassifications during the period are presented by the valuation of derivatives, where the Bank records its derivatives as assets when the fair value is positive and liabilities when the fair value is negative.
Level 3 fair value – transfers
The following were the significant level 3 transfers as of March 31, 2025:
Transfers between Level 1 and Level 2 to Level 3:
As of March 31, 2025, there were transfers of COP 4,803 of Mortgage Securities - TIPS to level 3 the securities do not mark to price, the margin is updated, and the marking days are greater than 365, therefore their current level is 3. For December 31, 2024, there were transfers of COP 523,669.
Transfers of COP 92,916 and COP 128,866 were made as of March 31, 2025 and December 31, 2024, respectively of the exchange rate and interest rate derivative contracts to level 3. They are mainly linked to the transfer of own credit risk to the credit risk of the counterparty As of March 31, 2025 transfers for COP (35,005) from level 3 to level 2 corresponding to bonds.
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Transfers between Level 3 and Level 1 and 2:
In December 2024, these securities were not price marked and their margin was not registered by the Price Provider (Precia), therefore their level was 3. However, as of March 31, 2025 they registered historical margin provided by the Price Provider (Precia), therefore the current level is 2. As of December 31, 2024, transfers from level 3 to level 2 were for COP (5,567).
Transfer of COP (127,524) and COP (8,987) as of March 31, 2025 and December 31, 2024, respectively of the exchange rate and interest rate derivative contracts from Level 3 to Level 2, mainly related to a transfer of the counterparty's credit risk to the Company's own credit risk.
Transfers between Level 2 and Level 1 of the Fair Value hierarchy
As of March 31, 2025, the Bank transferred securities from level 1 to level 2 for COP 34,987 as these securities increased their liquidity and were traded more frequently in an active market, therefore, its level was 1; however, for March 2025 the margin is historical and provided by the price provider (Precia), therefore, the current level is 2. As of December 31, 2024 the value of these transfers was COP 202,779.
As of March 31, 2025, the Bank transferred securities from level 2 to level 1 for COP 36,034, In December 2024 the margin is historical and provided by the price provider (Precia), therefore, the level was 2. However, for the month of March 2025 these securities marked price in a higher proportion than the one defined by the policy, therefore, the current level was 1. As of December 31, 2024, these transfers were not presented
All transfers are assumed to have occurred 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 through income statement. Favorable and unfavorable changes are determined based on changes in the value of the instrument because of varying the levels of the unobservable input.
The following table sets forth information about significant unobservable inputs related to the Bank’s material categories of level 3 financial assets and liabilities and the sensitivity of these fair values to reasonably possible alternative assumptions.

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As of March 31, 2025
Financial instrument Fair Value
Valuation
technique
Significant
unobservable input
Range of
inputs
Weighted
average
Sensitivity
100
basis point
increase
Sensitivity
100
basis point
decrease
Securities issued by other financial institutions
TIPS 67,257 Discounted cash flow
Margin (1)
 0.14% a 10.46% 3.63% 65,478 69,104
Amortization table (2)
 NA NA 69,028 -
Amortization table (2)
 NA NA 64,512 -
Solidarity Securities issued by the Colombian Government (TDS) 2,706,437 Discounted cash flow
Margin (1)
 1.18%% a 1.18% 1.18% 2,703,835 2,712,049
Bonds 574,467 Discounted cash flow
Margin (1)
 0.08% a 5.05% 1.51% 533,249 602,547
Other bonds 63,509 Discounted cash flow
Margin (1)
 0.07% a 1.12% 0.93% 62,128 65,148
Equity instruments
Equity instruments 436,942 Price based Price NA NA NA NA
Derivative financial instruments, net
Options 51,335 Discounted cash flow
Counterparties COP (USD) (3)
 0.12% a 34.23% 0.56% 50,948 51,501
Forward 280,849 Discounted cash flow
Counterparties COP (USD) (3)
 0% a 30.76% 3.19% 280,407 281,295
Swaps 95,754 Discounted cash flow
Counterparties COP (USD) (3)
 0% a 64.53% 3.77% 82,175 112,111
As of December 31, 2024
Financial instrument Fair Value
Valuation
technique
Significant
unobservable input
Range of
inputs
Weighted
average
Sensitivity
100
basis point
increase
Sensitivity
100
basis point
decrease
Securities issued by other financial institutions
TIPS 63,280 Discounted cash flow
Margin (1)
 0% a 10.66% 3.61% 61,474 65,164
Amortization table (2)
 NA NA 65,081 -
Amortization table (2)
 NA NA 60,732 -
Solidarity Securities issued by the Colombian Government (TDS) 2,648,355 Discounted cash flow
Margin (1)
 1.18%% a 1.18% 1.18% 2,639,349 2,660,301
Bonds 167,215 Discounted cash flow
Margin (1)
 0% a 5.25% 2.10% 164,781 172,140
Other bonds 504,030 Discounted cash flow
Margin (1)
 1.25% a 1.25% 1.25% 467,145 536,285
Equity instruments
Equity instruments 402,510 Price based Price NA NA NA NA
Derivative financial instruments, net
Options 66,010 Discounted cash flow
Counterparties COP (USD) (3)
 0.12% a 34.75% 0.50% 65,512 66,242
Forward 428,548 Discounted cash flow
Counterparties COP (USD) (3)
 0% a 20.80% 4.98% 427,979 429,124
Swaps 182,488 Discounted cash flow
Counterparties COP (USD) (3)
 0% a 56.14% 4.03% 166,650 204,677
(1)Margin: The margin reflects the risks not incorporated in the reference rate, such as the credit risk, and is that value which, compounded with the reference rate, results in the discount rate which the price of the security in the operation is obtained.
(2)Amortization table (Applies to TIPS): It is based on the cash flows generated monthly by the Colombian Securitization Company, which incorporate, among other assumptions, the default and prepayment indicators, which correspond to inputs that are not observable in the market but are developed under statistical techniques and based on the history of mortgage loans in Colombia.
(3)Recovery rate and counterparties COP (USD): These refer to the recovery rates and the probabilities of default of the counterparties, which are used in the estimation of the CVA/DVA adjustment in the measurement of the fair value of the OTC derivative instruments.
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The following table presents the valuation techniques used in measuring the fair value of the Bank's investment properties, the most significant unobservable inputs, and the respective sensitivity:
Metodología Técnicas de valoración Insumos no observables significativos Descripción de la sensibilidad
Sales Comparison Approach - SCA

The process by which an indication of value is obtained for the properties under analysis by comparing them with similar properties that can be considered comparable to those under analysis, that have been recently sold (ideally) or that are on offer, identifying the appropriate units of comparison and making the necessary adjustments to make them comparable to those under appraisal, based on market-derived comparables.		 Comparable Prices The weighted average rates used in the income capitalization methodology for the Fourth quarter of 2024 are:

•    Direct capitalization: initial rate 8.13%
•    Discounted cash flow: discount rate: 12,72%, terminal rate: 8,29%.

The same weighted rates for the first quarter of 2025 are:

•    Direct capitalization: initial rate 8,21%.
•    Discounted cash flow: discount rate: 12,40% terminal rate: 8,32%.


The ratio between monthly gross rent and the value of the properties managed directly by the FIC (rental rate) considering the differences in locations and individual factors between properties and on a weighted basis was 0.88% at the end of the fourth quarter of 2024 and 0.87% at the end of the first quarter of 2025.
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.

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

In this methodology the appraiser analyzes the capacity of a property to generate future benefits, which are brought to present value as an indication of value.		 Direct Capitalization


Discounted Cash Flows
Cost approach

A set of procedures by which an indication of the Market Value of the Full Property Right is obtained by estimating the cost of constructing, reproducing or replacing the property being appraised, including a reasonable profit, deducting depreciation from the total cost and adding the value of the land separately.		 Replacement cost
There has been no change to the valuation technique during the year 2025 for each asset.
NOTE 20. SUBSEQUENT EVENTS
The financial statements of Bancolombia S.A. for the year ended March 31, 2025, were approved by Chief Executive Strategy and Finance for publication on May 5, 2025.
On April 23, 2025, at an Extraordinary General Shareholders' Meeting of Bancolombia were approved by the required majority, the corporate structure changes of Bancolombia and its subsidiaries. These changes included the creation of a parent company called Grupo Cibest S.A. and the completion of a series of corporate transactions to achieve this goal as announced to the market on October 29, 2024. See Note 1. Reporting Entity.

In addition, the General Shareholders' Meeting of Bancolombia approved the amendment to the Corporate Bylaws and the adjustment of the value of Bancolombia's authorized capital in accordance with the increase in the par value of the share, in order to adapt to the new Corporate Structure. Likewise, the payment of an extraordinary dividend totaling COP 600,180 was approved, equivalent to COP 624 per share, payable in one installment on April 29, 2025.
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RISK MANAGEMENT

The first months of 2025 have been marked by an acceleration in economic growth compared to what was observed last year. However, uncertainty remains high at the local level due to the stagnation of inflation over the past four months, which has limited the room for monetary policy interest rate cuts. This is in line with the numerous fiscal challenges faced by the Government, stemming from ambitious spending expectations and constrained tax revenues. At the international level, U.S. trade policy has exacerbated the risks of slower global growth.
Credit risk – credit portfolio and financial leasing operations
Credit risk is the probability that the entity will incur losses due to i) non-compliance with the financial obligations taken by the counterparty, issuer or debtor, ii) deterioration due to the decrease in their risk rating, iii) the reduction of profits and remunerations and iv) the benefits delivered in restructuring and recovery costs.
The information included below presents the maximum exposure to credit risk as of March 31, 2025 and December 31, 2024
In millions of COP March 31, 2025 December 31, 2024
Credit portfolio and financial leasing operations 196,474,890  191,927,705 
Debt securities 20,276,321  21,310,688 
Equity investments (1)
 458,943  445,356 
Derivatives (2)
 561,812  917,173 
Subtotal maximum credit risk exposure 217,771,966  214,600,922 
Financial guarantees 7,069,253  7,812,238 
Total maximum credit risk exposure 224,841,219  222,413,160 
(1)For equity investments, the book value to be disclosed corresponds to the Other financial instruments.
(2)For derivative transactions, counterparty risk is revealed as long as the valuation is positive. Therefore, the value described here differs from the book value.
The maximum exposure to credit risk of the financial leasing portfolio and operations corresponds to it carrying amount at the end of the period without considering any guarantee received or other credit improvements.
The maximum exposure to credit risk of financial guarantees corresponds to the total balance granted at the end of the period, which is why it does not reflect the expected results.
The maximum exposure to credit risk of derivatives corresponds to the market value (mark to market) at the end of the period without considering any guarantee received or other credit improvements.
The maximum exposure to credit risk of debt securities and equity investments corresponds to their book amount at the end of the period without considering any guarantee received or other credit improvements.
a.Credit Risk Management – loan portfolio and Leasing operations
Risk management in the cycles of the different types of credit operations, it develops by complying with the policies, procedures and methodologies stipulated in the Credit Risk Management System, which also contains the general criteria for evaluating, qualifying, assuming, controlling and covering the mentioned risk. In addition, the administration has developed process and method manuals that specify the policies and procedures for the different products and segments served by the entity, and realize the strategy approved by the Board of Directors for the monitoring and control of credit risk.
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The policies for credit risk management are those stipulated for the credit exposure limit, credit origination, guarantees and securities, provisions, and portfolio monitoring and collections. Below is a brief description of the mentioned policies:
•Credit Exposure Limit Policy: contains the guidelines regarding the establishment of credit exposure limits and levels. Is set in compliance with legal requirements and in accordance with the entity's internal guidelines.
•Credit origination Policy: with this policy, the broad and sufficient knowledge of the characteristics of potential clients, the proper selection of these and the optimal granting levels consistent with their capacities is sought.
•Guarantees Policy: this policy specifies the guarantees provided by the clients to the entity, the characteristics, and criteria to accept and evaluate them to mitigate the risk associated with the non-compliance of the agreed upon obligations.
•Provisions Policy: this policy underlines the compliance of legal guidelines, what is stipulated by the Bank and the analysis of clients regarding the actions which must be taken, to cover the risk of losses due to credit exposure.
•Monitoring Policy*: It contains all the following activities that the bank use to monitoring the customer with their information, the purpose of this is to review the correct evolution of credit risk. These activities require a specific classification process of credits operations and are consistent with the policies implemented for new credits.
*Follow-up: Knowledge of the client's situation during the life of the credit.
•Portfolio recovery policy**: through the definition of this policy, the Bank's objective is to establish those mechanisms that allow it to anticipate possible delays and carry out the recovery of the portfolio, that is, to minimize the impacts that result from late or non-compliance with payments, Additionally, this policy define all the activities and aspects that the bank has been considered as customer reconciliation management to make it
The Bank's credit risk management is carried out in all processes of the credit cycle, these processes are framed as follows:
•Credit origination: customer knowledge, payment capacity analysis, sectoral analysis, payment behavior and credit structuring.
•Behavior: knowledge of the client's situation during the credit life.
•Recovery: collection during the different stages.
Scoring and rating models based on statistical information or expert criteria are used to support credit origination processes. This allows a differentiation of the risk level of potential clients to support decision making.
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The Vice Presidency of Risks defines and documents the characteristics of the models that are used in the process of credit origination. Also, defines parameters, variables and the cut-off points that applied in each model. At least every six months, the Vice Presidency of Risks must do the backtesting1 of the scoring and rating models, used in the credit origination process to validate their effectiveness. Additionally, monthly the entire credit portfolio must be rated with reference models and days past due, in order to assess the credit risk of each debtor and the allocation of bank provisions.
In addition to the evaluation and qualification of the portfolio, monthly provisions serve as a measure of the current condition of the portfolio, the parameters for their calculation are found in chapter 2 of Circular 100 of 1995 of the Financial Superintendence of Colombia, where define two matrices (A and B) for assigning the probability of default of the commercial and retail portfolio, a calculation that is made taking into account the rating, and in the commercial portfolio, the value of the client's assets, and in that of consumption, the historical behavior of the client's payments. For the remaining modalities, the portfolio is classified by risk level and then the provision percentage is calculated according to the days past due.
In order to guarantee compliance with the regulations established with respect to individual credit and concentration limits, the Bank carries out continuous monitoring of the concentration of risk groups, as well as daily control of the exposures of the different risk groups, evaluating the legal limits of indebtedness.
Additionally, there are internal concentration limits for the following classifications:
•Concentration analysis by country: the country risk for a client will be the one where the economic activity of the client take place to generate the resources to pay the credit obligation.
•Sector concentration analysis: carried out through the economic sector defined by the international ISIC code2
•Concentration analysis by modality: refers to the portfolio modality of each agreement (commercial, retail, microcredit and mortgage credit).
The Bank has models based on the optimization of risk and profitability, to determine the different levels of concentration of portfolios, also based on international references determined with external risk rating agencies that allow the analysis of concentration levels in different geographies.
Risk Country
As of March 31, 2025, no alerts were presented in any investment, nor were adjustments made for deterioration of investments that could affect or deteriorate the financial strength of the Bank, compared to the end of 2024. The decrease in the value of investments is due to revaluation factors.
1Statistical procedure used to validate the quality and accuracy of a model, by comparing actual results and risk measures generated by the models
2ISIC: International Standard Industrial Classification of all economic activities.
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b.Credit Quality Analysis - loans and Financial Leases portfolio
Credit risk rating system
Its main goal is to determine the client’s credit risk profile, which is given by the result of a rating.
The institutional or legal entities portfolio rating is performed through a Rating model, based on the analysis of quantitative and qualitative variables, which could affect the payment of the financial commitments acquired by a client. This model is performed in the early stage of the credit process, it is updated every six months and includes credit risk variables, which could be summarized in the customer's financial performance measured from financial figures and payment capacity, payment behavior with the Bank and with other entities, and qualitative variables that are not explicit in the financial statements.
For the retail portfolio there is a rating model based on a score, which contains the last 12 months behavior variables, such as overdue, product counts, changes in the initial credit conditions, among others, gathering all this information the rating model gives a score, which will be categorized by a credit risk level, to identify the level of risk associated with the client.
For the Bank, the following credit risk levels have been determined to group customers according to their payment behavior:
Category description
A - Normal Risk Loans and financial lease operations thatoperations have an excellentexcellent payment behavior. The debtor's financial statements and cash flows forecast, as well as other available financial information, it, allows inferring an adequate payment capacity.
B - Acceptable Risk Loans and financial lease transactions, even though they have an acceptable payment behavior, present some weakness that could potentially temporarily or permanently affect the debtor's ability to pay.
C - Appreciable Risk Loans and financial lease operations that present deficiencies in the debtor's payment capacity or in its cash flow forecast, which could affect the normal payment of the obligation.
D - Significant Risk Loans and financial lease transactions that have the same deficiencies as category "C", for a longer period, therefore its payment probability is low.
E – Uncollectible Loans and financial lease obligations in this category are considered uncollectible.
The Bank’s loan and financial lease portfolio distribution by the end of the period, according to the credit risk levels mentioned above, is shown below:
Period March 31, 2025 December 31, 2024
Category Balance Participation % balance Participation %
In millions of COP
A - Normal Risk 179,000,811  91% 173,994,888  91%
B - Acceptable Risk 3,635,817  2% 3,460,917  2%
C - Appreciable Risk 2,999,207  2% 3,144,840  2%
D - Significant Risk 4,460,306  2% 4,803,267  2%
E – Uncollectible 6,473,805  3% 5,548,814  3%
Total 196,474,890  100  % 191,927,705  100  %

Additional provisions

Additional individual provisions

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An individual review is carried out on significant clients with impairment, to determine whether they need an additional individual provision, based on their risk. At the end of March 2025, this provision amounts to COP 360,653 millions.
Relevant topics regulatory provisions
For the housing modality, an adjustment is made to the provision parameters, leaving them at the regulatory minimums for ratings C and D. This adjustment was made between June and July 2024 and continues to apply today. This adjustment allows for continued adequate coverage levels of the portfolio, which continue to be higher than those of the financial system, with parameters equal to or higher than the regulatory minimums required by the SFC.
Portfolio monitoring
•Retail and SME Banking:
As of the end of March 2025, the total balance of the Retail, SME, and Corporate Banking portfolios increased by 1.5% compared to December 2024. This growth was primarily driven by a stronger disbursement performance in the SME segment, supported by the annual unemployment insurance campaign (“Campaña Cesantías”). In the retail segment, growth was particularly observed in the mortgage loan product.

Past-due loans decreased by 1.5%, representing a 20-basis-point improvement relative to December 2024, bringing the non-performing loan (NPL) ratio to 6.7%. This improvement is largely explained by the solid performance of personal loan products and reduced delinquency rates in the SME segment. Early warning and predictive analytics strategies will continue to be applied to the loan portfolio, aiming to identify early signs of deterioration and mitigate the materialization of credit risk.
•Corporate banking:
By March 2025, the Corporate Business continued to show a positive performance in its loan portfolio, with an outstanding balance increase of 3.48% compared to December 2024. This growth is partly attributed to a favorable disbursement dynamic, with disbursement levels consistently exceeding COP 110 trillion. Although total disbursements experienced a slight decline of 1.58% relative to year-end 2024, the increase in the outstanding balance is explained by the composition of the disbursed loans: a larger share has been allocated to medium- and long-term operations, resulting in a progressive accumulation of principal in the portfolio. Additionally, a slower credit turnover rate has also contributed to the rise in the total balance.

Regarding portfolio quality, a significant improvement was observed. The 30-day past-due loan ratio stood at 2.30% at the end of March 2025, reflecting a reduction of 24 basis points compared to December 2024. This improvement highlights effective credit risk management, supported by stricter origination policies and proactive monitoring of clients showing early warning signs of deterioration.

Lastly, loan loss coverage through provisions remained strong, reaching 156% as of the first quarter of 2025. This level of coverage indicates the institution’s solid capacity to absorb potential credit losses, reinforcing both its solvency and overall financial stability.
Monitoring sectorial alerts, macroeconomic changes and political environment
During the first quarter of 2025, various monitoring and collection strategies continued to be implemented across all business segments, aiming to identify potential risks and proactively respond with timely and appropriate solutions to mitigate future impacts on the loan portfolio. A comprehensive review of the economic sectors in which the Bank is exposed remains essential. This includes analysis of macroeconomic, sectoral, financial, and transactional variables in each sector to effectively navigate the uncertainty caused by both macroeconomic volatility and domestic or international political developments.

So far this year, clients in the Retail and SME segments have shown improved payment behavior, responding positively to the decline in inflation and interest rates. However, broad-based alerts continue to be monitored, particularly those related to government budget management, monetary policy, trade policy, and key macroeconomic indicators such as the exchange rate. In addition, sector-specific alerts persist in portfolios such as construction, public contractors, and distributors of mass consumer products.
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c.Credit Risk Management – investment 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 Bank maintains control and continuous monitoring of the assigned credit risk limits, as well as the consumption thereof. Additionally, the Bank 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
Credit Quality Analysis - other 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 Bank.
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.
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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.
•Credit Quality Analysis
Maximum Exposure to Credit Risk Debt Instruments Equity Derivatives
March 31, 2025 December 31, 2024 March 31, 2025 December 31, 2024 March 31, 2025 December 31, 2024
In millions of COP
Low Risk 20,171,300  21,200,354  132,024  131,798  534,146  825,215 
Medium Risk 102,854  107,402  -  -  8,904  1,782 
High Risk 2,167  2,932  -  -  7,533  3,739 
Without Rating -  -  326,919  313,558  11,229  86,437 
Total en libros bruto 20,276,321  21,310,688  458,943  445,356  561,812  917,173 
Note: A negative value corresponds to positions with a negative valuation.
•Risk exposure by credit rating:
Máxima Exposición Riesgo de Crédito
Rating Risk
Rating Scale (1)
 March 31, 2025 December 31, 2024
In millions of COP
Low Risk Sovereign Risk 12,894,477  60.7  % 14,192,240  62.6  %
Low Risk AAA 7,457,494  35.0  % 7,241,893  31.9  %
Low Risk AA+ 87,311  0.4  % 196,918  0.9  %
Low Risk AA 156,309  0.7  % 107,982  0.5  %
Low Risk AA- 25,201  0.1  % 29,360  0.1  %
Low Risk A+ 62,454  0.3  % 123,794  0.5  %
Low Risk A 50,641  0.2  % 33,982  0.1  %
Low Risk A- 36,723  0.2  % 127,925  0.6  %
Low Risk BBB+ 25,464  0.1  % 67,966  0.3  %
Low Risk BBB 25,644  0.1  % 17,999  0.1  %
Low Risk BBB- 15,752  0.1  % 17,309  0.1  %
Medium Risk BB+ 108,986  0.5  % 107,759  0.5  %
Medium Risk BB 2,772  0.0  % 1,426  0.0  %
Medium Risk BB- -  0.0  % -  0.0  %
Hihg Risk B+ 762  0.0  % 3,410  0.0  %
Hihg Risk B- 2,167  0.0  % 2,352  0.0  %
Hihg Risk CCC+ 8  0.0  % 677  0.0  %
Hihg Risk C 6,750  0.0  % 213  0.0  %
Hihg Risk D 13  0.0  % 18  0.0  %
Without Rating SC 338,148  1.6  % 399,994  1.8  %
Total 21,297,076  100  % 22,673,217  100  %
(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.
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-Equity: the positions do not represent significant risks.
-Derivatives: 98.6% of the credit exposure does not present incidences of material default. The remaining percentage corresponds to default events at the end of the period.
•Maximum exposure level to the credit risk given:
Maximum Exposure to Credit Risk Maximum Exposure Collateral Net Exposure
March 31, 2025 December 31, 2024 March 31, 2025 December 31, 2024 March 31, 2025 December 31, 2024
In millions of COP
Debt Instruments 20,276,321 21,310,688 (1,748,707) (1,156,623) 18,527,614 20,154,065
Derivatives 561,812 917,173 214,165 589,098 347,647 328,075
Equity 458,943 445,356 - - 458,943 445,356
Total 21,297,076 22,673,217 (1,962,872) (1,745,721) 19,334,204 20,927,496
Note: derivative collateral received from counterparties, whose have their market value positive when consolidate all the portfolio derivaties of related ID, in December of 2024 was COP 589,098 and in March of 2025 was COP 214,165. 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 Bank, 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 company acts on behalf of Bancolombia for making international margin calls and providing better management of the collateral.
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.
d.Credit risk concentration - other financial instruments
Currently, the Bank's positions do not exceed the concentration limit.
Market Risk
The Bank currently measures 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. The exposure to each of the market risk factors is limited according to the risk appetite determined. To achieve this objective, a series of policies and limits are actively managed and monitored.
Within the Bank, several risk measures are used with the objective of quantifying the exposure to risk and, consequently, the effect of portfolio diversification.
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The main measures are: i) Regulatory VaR, whose calculation are established by Annex VI of the Chapter XXXI of the Basic Accounting and Financial Circular issued by the Financial Superintendence of Colombia and ii) Internal VaR, calculated using a weighted historical methodology with 250 observations, a holding period of 10 days, and a confidence level of 99%, along with hierarchical VaR value limits. The principles and guidelines for Market Risk management remain in accordance with the disclosures made as of December 31, 2024.
The total exposure recorded an increase of 1.2%, rising from COP 1,483,039 in December 2024 to COP 1,501,452 in March 2025. Increase explained by the exposure to different market risk factors. The risk factor leading the increase is collective investment funds due to valuations of the Colombia Inmobiliario Fund, followed by the interest rate factor which recorded higher exposure in debt securities. Meanwhile, the stock price factor registered a decrease due to devaluations in investments.
1A 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).
Despite the current situation and market volatility, the Bank's Regulatory VaR has remained stable without significant variations:
Factor March 31, 2025
End of Period Average Maximum
March, 2025		 Minimum
February, 2025
In millions of COP
Interest rate 421,462 381,362 421,462 343,807
Exchange rate 616,414 614,492 616,414 604,017
Stock price 13,849 14,841 13,849 15,546
Collective investment funds 449,727 445,284 449,727 444,958
VaR Total 1,501,452 1,455,979 1,501,452 1,408,328
Factor December 31, 2024
End of Period Average Maximum
November, 2024		 Minimum
January, 2024
In millions of COP
Interest rate 413,000 405,330 452,682 378,787
Exchange rate 615,479 404,782 604,595 234,652
Stock price 14,996 15,638 14,571 26,578
Collective investment funds 439,564 417,525 426,367 401,821
VaR Total 1,483,039 1,243,275 1,498,215 1,041,838
Regarding the internal measurement of value at risk (VaR), 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 under constant monitoring by senior management and serve as a tool for decision-making to preserve the stability of the Bank.
•Measuring interest rate risk in the banking book
Interest rate risk is understood as the possibility of incurring losses due to a decrease in the economic value of assets or a reduction in the net interest margin, as a consequence of changes in interest rates. The impact of these variations could be reflected in the financial margin and, consequently, in equity due to the risks inherent in active and passive transactions, as well as in the administration of the resources that the Bank manages day to day.
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The Bank adopts the guidelines for Interest Rate Risk of the Banking Book (IRRBB) established in Chapter XXXI Integral Risk Management System (SIAR) of the Basic Accounting and Financial Circular 100 of 1995, Annex 15 Standard Methodology to determine the RTILB, on assets, liabilities and off-balance sheet positions indicated by the Financial Superintendency of Colombia (SFC).
In this regard, an IRRBB Management Framework has been designed, including the BBCSR (Bank Book Credit Spread Risk), which aims to measure its impact on the EVE (Economic Value of Equity) delta and on the NIM (Net Interest Margin) delta.

•Interest Rate Risk Exposure (Banking Book)

Net Interest Income Sensitivity (ΔNII)

The ΔNII allows measuring the impact of interest rate risk on the Bank's financial income and expenses over a one-year time horizon. This approach allows assessing the effect of changes in interest rates on projected interest income and interest expense flows, providing a view of the immediate impact on the Bank's profitability.

For the evaluation of the change in the NII (ΔNII), two specific shock scenarios are used: an upward parallel shock and a downward parallel shock. These shocks involve uniform upward or downward shifts of the interest rate curve, allowing us to analyze how these variations affect the net interest margin over the one-year horizon.Interest rate risk is understood as the possibility of incurring losses due to a decrease in the economic value of assets or a reduction in the net interest margin, as a consequence of changes in interest rates. The impact of these variations could be reflected in the financial margin and, consequently, in equity due to the risks inherent in active and passive transactions, as well as in the administration of the resources that the Bank manages day to day.

Table 1. Sensitivity ΔNII
Positions March 31, 2025 December 31, 2024
In millions of COP
Sensitivity of the asset 5,239,416  5,047,412 
Sensitivity of liabilities 3,956,297  3,989,352 
NII sensitivity (NII Delta) 1,283,119  1,058,060 

The ΔNII Delta for March 2025 is COP 1.2 billion under a parallel decrease scenario, considering the positive mismatch of repricing and capital maturities of less than 1 year.

Assumptions and limitations
• The analysis is performed under the assumption of a constant balance, which implies that the cash flows that mature/reprice are replaced by new flows with the current terms of each product. that the cash flows that mature are replaced by new flows with identical characteristics in terms of term and interest rate.
• The projection of the flows includes behavioral options such as the prepayment of the fixed-rate portfolio, the maturation of the deposit accounts and the implicit or explicit options of the fixed-rate commitments and the variable-rate prepayments of the wholesale portfolio segment.

Economic Value of Equity Delta (ΔEVE)

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The ΔEVE measurement evaluates the change in the net present value of cash flows of assets, liabilities and off-balance sheet items until maturity, under stress scenarios. The objective is to capture how changes in interest rates affect the economic value of the Bank's equity.

This calculation incorporates interest rate shocks applied to the risk-free zero-coupon curve, according to each currency, considering six scenarios, to evaluate the impact of interest rates under various market conditions on the present value of the cash flows of the banking book operations, which in turn determines the economic value of the Bank.

Table 2. ΔEVE(4)

Positions March 31, 2025 December 31, 2024
In millions of COP
Sensitivity of the asset 7,105,572  6,848,837 
Sensitivity of liabilities 4,652,881  4,985,977 
Sensitivity EVE (Delta EVE) 2,452,691  1,862,860 

For March 2025, Bancolombia's Delta EVE is COP 2.4 billion for a scenario with a parallel upward behavior of changes in market rates.

Delta EVE represents 8% of the ordinary basic equity plus the additional basic equity, therefore, it complies with the regulatory limit established in Chapter XXXI Integral Risk Management System (SIAR) of the Basic Accounting and Financial Circular 100 of 1995, Annex 15, which is equivalent to 15% of the ordinary basic equity plus the additional basic equity

Assumptions and limitations
• The analysis is performed under the liquidation balance assumption, which implies that existing positions are amortized and not replaced by any new business.

• The projection of the flows includes behavioral options such as the prepayment of the fixed-rate portfolio, the maturation of the deposit accounts and the implicit or explicit options of the fixed-rate commitments and the variable-rate prepayments of the wholesale portfolio segment.
4. The inclusion of Bancolombia's commercial margins increases the Delta VEP by COP 92 billion for a scenario of parallel rate increases. On the other hand, including RSCLB (Bank Book Credit Spread Risk) would increase the VEP by COP 8 billion without representing a significant amount of Banking Book Interest Rate Risk.
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 first quarter of the year, liquidity levels have shown a downward trend as a result of the outflows in deposit accounts and the dynamism in loans disbursements, partially offset by deposits in CDTs.

However, the level of Liquid Assets has remained above the established limits.
Funding Sources March 31, 2025 December 31, 2024
In millions of COP
Demand deposit 117,974,066  122,163,132 
Time deposits 67,201,158  63,637,941 
Total Funding Sources 185,175,224  185,801,073 
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•Liquidity Risk Exposure:
To estimate liquidity risk, a liquidity coverage indicator (IRL) is calculated that corresponds to the relationship between liquid assets and their net liquidity requirements for a horizon of 30 calendar days. This indicator allows you to know the liquidity coverage you have for the next month.
The net liquidity requirement is calculated from the flow of contractual maturities of the asset and the flow of contractual and non-contractual maturities of the liability, as defined in Chapter XXXI, of the CBCF of the SFC.
Below are the results of liquidity coverage for the Bank:
Liquidity Coverage Ratio March 31, 2025 December 31, 2024
In millions of COP
Net cash outflows into 30 days** 20,528,820  18,811,459 
Liquid Assets 29,845,592  35,329,433 
Liquidity coverage ratio* 145.40% 187.80%
*The minimum level of liquidity coverage required by the standard is 100%.
**30-day liquidity requirement: 30-day contractual maturities of the asset (portfolio, liquidity operations, investments that are not liquid assets, derivatives) less contractual maturities of the liability (term deposits, passive liquidity operations, bonds, portfolio liabilities, derivatives) less non-contractual maturities of deposit accounts.

The liquidity indicator stood at 145.40%% at the end on March 2025, presenting a reduction of 4240 bp compared to the end on December 2024, explained by the decrease in the level of liquid assets given the outflows in deposit accounts and loans disbursements, added to the increase in the 30-day liquidity requirement due to the increase in the projection of expenses, mainly the payment of dividends, and the reduction in income flows from the portfolio and liquidity operations.
•Liquid Assets
One of the Bank's main guidelines is to maintain a solid liquidity position, therefore, the Board of Directors has approved maintaining a minimum level of liquid assets, calculated based on liquidity requirements, in order to guarantee adequate operation of banking activities, such as placement of loans and withdrawals of deposits, protecting capital and taking advantage of market opportunities.
The following table shows the liquid assets held by Bank:
 Liquid Assets(1)
 March 31, 2025 December 31, 2024
In millions of COP
High quality liquid assets
Cash 10,589,304  12,463,277 
High quality liquid securities(2)
 16,978,286  20,622,441 
Other Liquid Assets
Other securities(3)
 2,278,002  2,243,715 
Total Liquid Assets 29,845,592  35,329,433 
(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..
(2)High quality securities are considered to be those available and the shares that are eligible to be subject to repo or repo operations, additionally for those entities that are in the group of OMAS Placement Agents (ACO) those liquid assets that receive the Banco de la República for its monetary expansion and contraction operations described in section 3.1.1 of the External Regulatory Circular DODM-142 of the Banco de la República or otherwise (if it is not ACO) only those securities that are mandatory listing in the market maker program.
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(3)Other Liquid Assets: Liquid assets that do not meet the quality characteristic are those included in this item..
•Net Stable Funding Ratio
The Net Stable Funding Ratio (CFEN) indicator seeks to ensure that entities maintain a stable funding profile in relation to their long-term assets. The Net Stable Funding Coefficient (CFEN) is a ratio between the stable funding required and the stable funding available.
The following are the results of the Net Stable Funding Ratio between December 2024 and March 2025:
Net Stable Funding Ratio
ITEM March 31, 2025 December 31, 2024
In millions of COP
Funding stable available (FED) 199,142,416 205,786,903
Funding stable Required (FER) 168,659,897 168,405,514
Net Stable Funding Ratio 118.07  % 122.20  %

The indicator has remained above adequate levels, without breaching the established limits. However, so far this year, there has been a reduction of 412 basic points considering the reduction in the Available Stable Funding due to the decrease in technical equity and in the deposit accounts under the Wholesale and Retail segments .
Operational Risk
The Bank operational risk system objective is to carry out an adequate risk management that allows minimizing, avoiding, or reducing the materialization of adverse events and/or reducing their consequences or costs in case of materialization. The operational risk management system has not presented changes in relation to what was revealed at the end of December 2024 in terms of regulations, policies, manuals, methodologies, structure or any other relevant element that may affect its effectiveness.
During the First quarter of the current year, no new risks or changes in existing risks have been identified that significantly modify the Bank's operational risk exposure. The accumulative losses to March 2025 reaches out to COP 90,034 million , COP 78,825 million explained by the fraud category, due to fraud enlistment in second factor of authentication (dynamic key) in the migration strategy to the new APP Mi Bancolombia, and capture of customer data through social engineering techniques. To contain this tendency, we did adjustments in monitoring models and password blocking, security campaigns and accelerated the migration process.
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