Leonardo Penuela Bernal/iStock Editorial via Getty Images
- Bancolombia (NYSE:CIB) stock dropped 2.1% in Thursday morning trading after Bank of America Securities downgraded the bank to Underperform from Neutral as earnings growth is likely to be limited as interest rates fall.
- “We see modest earnings rebound during the next years,” with ROAE at 15%, at most, in 2025 and 2026, analyst Ernesto Gabilond wrote in a note to clients.
- Its net interest margin is expected to come under pressure as central banks lower interest rates. Bancolombia’s (CIB) earnings benefited the most in the region under restrictive monetary policy, the analyst said.
- BofA’s Underperform rating is more bearish than the SA Quant rating and the average Wall Street analyst rating, both at Hold.
