Bancolombia S.A. (CIB) CEO Juan Carlos Mora Uribe on Q3 2018 Results – Earnings Call TranscriptSeeking AlphaNovember 13, 2018
We continue our strategy to grow faster in consumer loans, still targeting low risk clients with better risk adjusted returns.
For the year 2018, we estimate the total loan growth of around 5% and in 2019 the growth should accelerate to reach levels to 8% to 10%.
As a result of the provisioning level, we increased the coverage ratio for 30 days past due loans to 112%, and [indiscernible] to 151%.
The relevant forecast for 2019 are: first, loan growth around 8% to 10%; NIMs, at around 5.6% to 5.8%; fee growth 2019 will be at around 8%; expenses will grow in between 3% to 4%; cost of risk, we are expecting 2%; and efficiency ratio at around 48% to 48.5%.
The first one is: loan growth.
And also if we have increased our provisions in the three cases or any other corporate cases, we will have enough room to increase that provisions because that will be offsetting because of the lower level – or lower level of provision in consumer and SMEs also.
Regarding your second question: next year, we expect our key driver or the main driver of the loan growth will be, again, consumer, and the consumer will be at around 13% to 14%, but it’s important to highlight that the commercial loans were expected to grow in between 9% to 10%, that will be – if you combine those numbers the loan growth will be, again, 8% to 10% next year.
My question is related to the cost of risk this quarter.
And again, our view is if we have to increase the provision in those corporate cases, we will have enough room made here because of the combination of loan growth and because probably we have to reduce provisions in SMEs and consumer loans.
I have just a question on funding.