Good morning, ladies and gentlemen, welcome to Bancolombia's first quarter 2021 earnings conference call. My name is Claudia, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Following the prepared remarks, there will be a question and answer session. During the question and answer session, if you have a question, please press star then one on your touchtone phone. Please note that this conference is being recorded. Please note that this conference call will include forward-looking statements, including statements related to our future performance, capital position, credit-related expenses, and credit losses. All forward-looking statements, whether made in this conference call, in future filings, in press releases, or verbally address matters that involve risk and uncertainty. Consequently, there are factors that could cause actual results to differ materially from those indicated in such statements, including changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products by other companies, lack of acceptance of new products or services by our targeted clients, changes in business strategy, and various other factors that we describe in our reports filed with the SEC. With us today is Mr. Juan Carlos Mora, Chief Executive Officer, Mr. Mauricio Rosillo, Chief Corporate Officer, Mr. José Humberto Acosta, Chief Financial Officer, Mr. Rodrigo Prieto, Chief Risk Officer, Mr. Carlos Raad, Investor Relations Director, and Mr. Juan Pablo Espinosa, Chief Economist. I will now turn the call over to Mr. Juan Carlos Mora, Chief Executive Officer. Mr. Juan Carlos, you may begin. Good morning, welcome to our conference call for the first quarter 2021. I hope all of you and your families are safe and healthy. After a slow start of the year due to the second wave of the pandemic in Colombia, economic activity rebound in February and March. Data shows that economic activity is almost reaching pre-pandemic levels. Unfortunately, we continue under high levels of uncertainty. Currently, Colombia is going through a third wave of the pandemic. The major cities in the country are dealing with a new round of restrictions. The pace of the economic recovery depends on the COVID-19 infection rate, the speed of the vaccination plan, and the discussion of the fiscal reform. Before getting to the details of the results, I want to highlight some key topics. The loan book grew 3% compared with the previous quarter. Deposits grew 2% during the quarter, and we continue lowering the funding cost. Core equity Tier 1 under full Basel III was 11.2%, and the net income was COP 543 billion. Provision charges for the quarter were COP 1.3 trillion, mainly driven by COVID-19 impact in our clients. This provisioning level takes the bank to a coverage ratio of 222%, and allowances for loan losses represents 8.1% of total loans. Our business areas, supported by more than 20 million clients, continue to evolve. The marketplaces of our ecosystem strategy, with only a few months in the market, have become relevant for our customers. The mobility marketplace has had 1.5 million online visits, and the housing marketplace, 1.7 million. These interactions led us to pre-approve and disperse credits for COP 20 billion. At this point, I want to turn the presentation to Juan Pablo Espinosa, who will further elaborate on the performance of the Colombian economy. Juan Pablo. During the first quarter of 2021, the Colombian economy displayed two contrasting trends. In January, the adoption of sanitary restrictions due to the second wave of the pandemic led to a downturn in economic activity and employment. Nevertheless, once these measures were lifted in early February, the economy recovered fast, thus erasing most of the initial negative response. As a result, we estimate that GDP, in terms of year-on-year variation in the first quarter, was around -0.4%, which is higher than our initial forecast of -3%. This revision, as well as the base effect and discretionary stance of both monetary and fiscal policies, will translate into a full year 2021 growth expectation of 5.5%. It is worth mentioning that this forecast incorporates the recent acceleration of COVID-19 cases and fatalities and a low probability of reaching herd immunity this year. In terms of prices, the last 12 months inflation print was 1.5%, almost half of the central bank's target. However, there is evidence of some upward pressures emerging from CPI components such as food, housing costs, and regulated items. This confirms our perspective that inflation will accelerate in the next months and will close 2021 around 2.5%. Against this backdrop, we predict that the central bank will start a hiking cycle in the second half of the year, although at a more moderate pace than the current market's expectation. We anticipate that the reference rate will be at 2% at the end of this year and 3.25% by December 2022. At the same time, the sovereign yield curve has steepened due to movements in the U.S. Treasury market as well as idiosyncratic factors. We expect this pressure, as well as peso weakness, to continue in the short term, given the discussion about the reform to public finances. Finally, as we mentioned in our previous conference call, the approval of a fiscal reform will be key to rating agencies' decisions about Colombia this year. Recently, the government submitted to Congress a proposal, which intended not only to tackle some of the fiscal challenges that arose from the pandemic, but also to strengthen the subsidies that the most vulnerable households receive. Although this first draft was just withdrawn by the government, it is reasonable to expect that a watered-down version of the reform will be ultimately approved, which would in turn reduce the odds of a sovereign downgrade. Now, I want to turn the presentation back to Juan Carlos. Juan? Thank you, Juan Pablo. Moving to slide four, I want to continue this presentation by explaining our business evolution. The bank keeps moving forward. As an example of this is the change we recently launched of our corporate image. The evolution of our image is a symbol of the commitment to deliver our best efforts to more than 20 million clients. This evolution is a declaration of principles to reflect the purpose of Bancolombia in each action. It was not a simple change of image. This change implies new ways of working, new ways of relating to our customers, a new way of doing business. In this slide, you can observe how our main segments continue growing despite the situation. Based on new risk criteria, picking the best credit profiles, we have pre-approved COP 57 trillion for almost 2 million retail clients. During this quarter, we were the bank with the highest amount disbursed in loans for low-income housing with government subsidies, and we were the first bank with 100% housing transfer deed. one out of every two SMEs in the country is our client. We want to provide financial and non-financial services that ensure that the economic reactivation occurs in all sectors in an accelerated and sustainable way. We have pre-approved COP 13.5 trillion for 400,000 SMEs to accompany their recovery. In the corporate business, we are structuring credit lines tied to sustainable performance. Recently, we announced the first loan granted to Grupo Argos for COP 392 billion, which may obtain a reduction in rate by reporting its annual progress based on the fulfillment of previously defined goals in terms of gender equality and climate change. Moving to slide five, I'm going to elaborate on our digital platforms' evolution. During the quarter, Nequi and Bancolombia A La Mano continued to grow and maintain the positive trend experienced during the last year. Between the both, they reached 11 million clients, almost three times the amount reported at the beginning of 2020. In addition to the number of clients, we want to highlight the high level of activity and increase in transactions and deposits. The activity indicator for Nequi is 59% and 14% for Bancolombia A La Mano. With Bancolombia's QR Code, more than COP 1 trillion have already been digitalized in more than 700,000 merchants, and deposits between the two platforms reached almost COP 1 trillion. We are adding clients at a fast pace. They are using our platforms and not only for transactional purposes, but also for saving. All these elements are giving us accurate information that will permit us to know them better and introduce them to the credit business. Moving to slide six, you can see some relevant figures of Nequi and Bancolombia A La Mano. These two platforms complement each other by targeting diverse niche markets. Nequi targets young people, and Bancolombia A La Mano, the base of the population. While Nequi is stronger in payments and recharges, Bancolombia A La Mano is stronger in payrolls and subsidies. Both are showing a positive trend in their fee income and in the number of processed transactions. Nequi cards are growing fast. We have tripled the number reported 12 months ago. For Bancolombia A La Mano, we estimate that for every peso we invest in a platform, we have a social impact of COP 8. In slide seven, we present our ESG framework. For 2021, we plan to allocate COP 30 trillion through financial services to strengthen the country's economy, the construction of sustainable cities, and financial inclusion. For 2030, we have the goal to increase this amount to COP 500 trillion. We also plan to avoid 9.3 million tons of carbon dioxide and run our direct operations with 100% renewable energy. Finally, I want to highlight that this year we have disbursed COP 2.2 trillion in special credit lines for women and COP 1.9 trillion in special lines for the agricultural sector. I want to turn the presentation to Jos é Humberto Acosta. Jos é? Thank you, Juan Carlos. Now turning to slide seven, I want to walk you through the evolution of the relief program. Credit reliefs continued to decrease during the first quarter of the year, reaching 10% of the consolidated loan book. It is important to highlight that this 10% includes structural solutions that we are giving to our clients in Colombia, Panama, and El Salvador. In Colombia, 5.6% of total loans are still under relief. Almost all of these reliefs are under PAD program. Considering the geographies where the bank operates, our focus is Panama. The relief program will apply at least until June. In Banistmo, we kept 35% of the total loan book under relief. You can notice a better trend when compared with the last year figures, because despite the reliefs were extended, these are not mandatory as they were last year. Besides that, clients need to prove that they were affected by the pandemic in order to apply for them. In slide eight, we present the breakdown of provisions during the quarter. Provision charges for the first quarter were COP 1.3 trillion. As we did in previous quarters, I'll explain the breakdown. Provisions associated to the update of macro scenarios and COVID-19 account for 66% of the quarter charges. We want to highlight that in this quarter, there is an important difference with the previous ones. As the expectations for macro variables are better for this year, the main drivers of these provisions are the structural solutions in Colombia and El Salvador, reliefs in Panama, and the deterioration of the loan book quality related to the impact of COVID-19. Recently, better risk-rated clients have started to request more reliefs, which implies higher provision expenses. Moving to slide nine, we give you a snapshot of the composition by the stages and their coverage. During the quarter, there was an important increase in Stage 2, while Stage 3 remained relatively stable. The increase in Stage 2 was explained by a change in the profile of clients applying to reliefs and structural solutions. As the pandemic has continued, better-rated clients have asked for support and were moved to Stage 2. At the right side of the slide, you can observe the total balance in Stage 2 and 3, and the percentage covered by the allowances. This shows that depending on how the pandemic and the economic recovery evolves, there is still space for provision charges in upcoming quarters. In slide 10, we present provision charges and allowances. Cost of risk for the quarter was 2.6%, and for the last 12 months was 3.7%. Cost of risk without COVID-19 effect was 0.9% for the quarter and 1.7% for the last 12 months. As a result of our provisioning models, the level of allowances has remained high as the proportion of total loan portfolio. This is a sign of the strength of our balance sheet, protecting it in an environment that's still uncertain. For the first quarter of 2021, allowances for loan losses represented 8.1% of total loans, coming from 5.7% one year ago. Although the performance of provision charges for the quarter showed the lowest levels since the pandemic began, it is still too early to confirm that the trend will continue throughout the year. Levels of uncertainty are still high. The recovery will depend on the evolution of the COVID-19 and the vaccination plan, and the real impact in our clients is not visible while they are under reliefs. We are expecting to close this year with a cost of risk within the 3% area. Slide 11 shows the past due loan formation coverage. New past due loans during the quarter decreased because of higher charge-offs. The increase in charge-offs is explained by the retail clients that became 90-day past due in the second half of last year and during this quarter were written off and also were impacted by a corporate client. This increase in charge-offs impacted non-performing loans, describing the reduction when compared with the previous quarter. Non-performing loans will continue rising in line with the end of the credit reliefs. We expect these metrics to reach their highest during the second half of 2021. The consumer segment represents the highest deterioration. Remember that when a client requests a relief, an increase in the provision takes place, but the client is still performing. That's why we expect non-performing loans to increase as reliefs end, but not necessarily the same effect for provision charges, as we have already incurred in the expenses. The coverage ratio increased to 222%, but should start decreasing as credit reliefs end. Moving to slide 12, we want to present you the assets and loans breakdown. The year started with a slow dynamic in the loan book. It grew 3% when compared with the fourth quarter of 2020, mainly explained by the depreciation of Colombian pesos versus US dollars. We are expecting the loan book to grow faster in the second half of the year. You can see in the bottom left of the slide that the main driver of the loan book behavior over the last year is the FX volatility. I want to highlight that the loans represent 77% of total assets, and that is in this quarter, the duration of the loan portfolio has increased. This is a good sign that reflects that despite the slow pace of growth, our clients are starting to have a better perspective of the near future. On slide 13, we present the consolidated and standalone capital adequacy. Consolidated total solvency ratio stands at 14.8%, while CET1 at 11.2% level under full Basel III for the first quarter, well above the minimum regulatory requirements. These levels place the bank in the high range of our solvency target. As you can observe, the standalone operation also present levels above the minimum requirements of each geography. On slide 14, we present the liquidity position of the bank. In a consolidated basis, we are expecting liquidity levels to maintain at least for the first half of this year and a stable interest rate at least until the third quarter of this year. We continue reducing the funding cost, basically because clients have shifted their balance in time deposits to savings accounts due to the low rates. On slide 15, we present a snapshot of our standalone operations. In general terms, the trend throughout the different geographies operated by Bancolombia was similar. Margins under pressure, fees recovering as economies started to reactivate, slightly growth of the loan book, positive evolution of efficiency, and a solid position in terms of capital and liquidity. I want to give you a quick overview of each of the Central American countries which we operate. Let's start with BAM in Guatemala. This quarter, the pace of the disbursement in corporate segment was positive. The forecast of macro variables has improved, and this, combined with the fact that Guatemala was of the least impacted countries in the region during the pandemic, has a positive impact in our provision charges for the year. Banco Agrícola in El Salvador, it's one of our most profitable operations. It had a good performance over the first quarter with positive operational metrics. We are expecting a better performance of margins as we continue reducing the funding cost and control levels of cost of risk due to a better performance of our clients. Finally, Banistmo. Panama is one of the most impacted countries in the region by the pandemic. Although we still have 35% of the loan under relief, the recovery is material when compared with the fourth quarter of 2020. Since February, the business performance has been showing a better trend. It is important to highlight that Banistmo deposits and loan book are growing more than the system, gaining market share. On slide 16, we see the evolution of margins and net interest income. After closing 2020 under pressure, net interest margin returned to the 5% area that we are expecting. As we mentioned, margins will continue under pressure this year because of the low interest rates, impacts of the relief programs, and increase of Basel III clients with the end of credit reliefs. Net interest income shows a better performance as we continue reducing funding costs and increasing the duration of the loan portfolio. Slide 17 shows the evolution of expenses and efficiency. We continue with our focus on cost control. During the first quarter of the year, the bank showed a contraction in operating expenses of 8% when compared with the first quarter of 2020. Personnel expenses were down 11% and administrative expenses down 5% when compared with the same quarter of last year. Even though these are positive results, we expect a real growth of expense for this year. The two main drivers of this growth will be investments in digital transformation to keep the bank competitive and to support our 20 million clients, and also in 2021, we are expected to have better results, which will mean the return of our employees compensation plan. Slide 17 shows the evolution of fees. Net fees continue to be one of the most resilient lines of the P&L. In the first half of the quarter, fees were impacted by the lockdown measures, but quickly recovered once the restrictions finished. The high correlation between the fee income and the transaction levels continues, which is reflecting the volume of fees from debit and credit card transactions. We expect fees to grow at around 5% for this year. Slide number 18 shows the profitability metrics. Net income for the quarter was COP 543 billion, up 62% when compared with the first quarter of 2020. This is mainly explained by lower provision charges and lower operational expenses. As we have mentioned over the conference, uncertainty is still high, and it is too early to affirm that this trend is going to be maintained in the upcoming quarters. I want to turn the presentation to Juan Carlos for the closing remarks. Juan? Thank you, José Humberto. As we mentioned last quarter, for us, 2021 is a year of transition in which we are not going to return to pre-pandemic levels in our main indicators. Despite the big challenges we are facing, results are going to be better than last year. Bancolombia is moving forward. We have a stronger balance sheet, a better cost structure, a more diversified portfolio of products and services leveraged by a robust digital strategy with a positive evolution of digital platforms. This, combined with more than 20 million clients and new business strategies, will help us to recover from the impacts of the pandemic. Before ending this call, I want to give a quick update of what we are expecting for year-end figures. We are expecting the loan book to grow between 6%- 8%. Net interest margin should close in the year in the 5% area, fees growing 5%, and cost of risk in the 3% area. After elaborating on these key topics, I want to open the line for questions. Thank you. We will now begin the question and answer session. If you have a question, please press star then one on your touchtone phone. If you wish to be removed from the queue, please press star then two. If you're using a speakerphone, you may need to pick up the handset before pressing any key. Once again, if you have a question, please press star then one on your telephone. Our first question is from Brian Flores with Citibank. Please go ahead. Hi. Good morning. Thank you for the presentation and for the opportunity to ask questions. Two quick questions. The first one is, we're accompanying the difficulty of the fiscal consolidation in the country amidst this third wave of COVID-19 in Colombia. In this sense, how comfortable are you with regards the regulatory income taxes for the banking system? Are there any talks at the moment to extend the surcharge of income taxes for longer? My second question is, you delivered high ROE of 8% in this quarter. This also came with a cost of risk of 2.6% compared to what you just recently noted for the year of about 3%. Well-behaved costs, which declined 8% year-on-year versus your guidance of growing a bit higher than inflation for the year. Would it be reasonable in this context to say that most of likely upcoming quarters of 2021 will bring ROE lower when compared to the first quarter? Thank you very much. Thank you, Brian, for your questions. Regarding your first point, there have been some conversations around additional regulations for the banking system. The Congress is looking at some measures or discussing some additional measures. As is happening, I think, almost everywhere. We are confident that the regulation in Colombia is strong We have a very good supervisory body, and that the performance of the banking system is key for the economic recovery of the country. We are positive that the discussions are going to lead to have an even better financial system. Regarding taxes, there are some conversations around a surcharge for banks. Let me remind you that we already have a surcharge of 3% on our income tax rate. It's already in place. We will need to know how is going to evolve the discussions around the fiscal reform that is going to be presented to the Congress after the withdrawal of the original proposal presented by the government. Regarding the second question, we had a good quarter. ROE was, as you mentioned, close to 8% or 8%. We want to be cautious around how the rest of the year is going to develop. We need to wait. We had a good cost of credit during the quarter. As you mentioned, 2.6. We are expecting between 2.8% and 3% for the whole year, as we expect that some clients evolve. We don't know how the performance is going to be. We prefer to be cautious. The year, as I mentioned, is going to be better year than the 2020. First quarter was good quarter. We will wait and see how things evolve. We will continue evaluating the situation. I think the whole year is not going to perform as well as the first quarter. Very clear. Thank you. Our next question is from Ernesto Gabilondo with Bank of America. Please go ahead. Hi, good morning, Juan Carlos, José Humberto, Juan Pablo, and good morning, everyone. Thanks for the presentation. My first question is on net interest income. We noticed this quarter was favored because of lower funding costs, but also by the interest on investment securities due to the performance of the derivatives loan book. How recurring could be this performance of the derivatives portfolio, and how should we think about NII growth this year when compared to loan growth? Thank you, Ernesto. Let me give you some comments, and I'll pass the question to José Humberto to elaborate. As we mentioned, the NIM was around 5%. As you mentioned also was the performance of the securities income was good. We still think that the NIM will be around or between 4.8% and 5% during the year or at the end of the year. We have been working on the funding cost, and that allow us to manage the margin. We still think that the NIM is going to be around the 5%. Let me pass your question to José Humberto to elaborate on it. Thank you, Juan Carlos. Thank you, Ernesto. Yes. Regarding NII, as Juan mentioned, the loan book will grow 6%-8%. We are expecting that the NII will grow around 4%-5% for the whole year. There is a specific reason why. It is because we are going to see an increase in the loan book maybe in the second half of the year. That's the reason why the NII grows slower than the loan book grows. Regarding your question with investment securities derivatives, yes, the first quarter, it is a remarkable performance, and this is basically because of the volatility. The derivative book performance, it's quite well. We don't think that that will be sustainable. We are, as Juan mentioned at the beginning, we are cautious about the forecasting of this performance of the securities portfolio. In our forecast, we always try to identify an structural NIM for the securities portfolio at around 1%. This first quarter was 1.7%, again, because of the volatility. We don't expect much more for the next coming quarters. Also remember that our loan book accounts almost. 80% of our total assets. Meanwhile, the securities portfolio accounts only 10%. Perfect. Very helpful. Allow me to make another couple of questions. The second one is a follow-up on cost to risk. As you mentioned, first quarter came below your guidance, you are reiterating your cost to risk of 3% for the year. Can you elaborate if this is explained also by the potential tax reform that could tackle high-income individuals and corporates? As you mentioned, it will be also explained by some of the relief programs that will show higher NPLs in the next quarters. My last question is on Nequi. We have seen in your presentation that Nequi has reached close to 6 million users, from which 59% are active users. This has been a very positive evolution. When do you think we can start to see financial statements related to Nequi in your press release? When do you expect to do a spin-off of Nequi? Thank you. Thank you, Ernesto. Let me elaborate on your two points. As regard tax reform, I think we need to wait and see. As I mentioned, the government withdrew their proposal of fiscal reform that they presented to the Congress. At this moment, there are conversations around a new tax reform. My view is this tax reform is going to be a transition reform. It's going to be probably a bridge to help support the fiscal situation of the country during these next two years. Then we will start talking about a more structural reform. Due to the current situation, I think it's what should happen, and I see the government going on that direction. As you probably know, there is a new minister of finance, and he's talking about that, and he is talking with the political forces, with the different parties, to have the consensus of moving forward on that direction. I am optimistic that this consensus will allow to have a fiscal position for the country that will help to maintain the social programs that the government has in place, and also will help to bridge the situation until, I think, couple of years ahead. Regarding Nequi, we are very happy with the performance of Nequi. As you mentioned, we are close to have six million clients. They are active. They are using the platform. We are introducing loans. We now have close to 600,000 cards, Visa cards. Activity is very good. We will start giving more information about the performance of Nequi in our following reports to tell you how are we evolving. Regarding a spin-off, Nequi was set as a separate unit in Bancolombia. It's part of Bancolombia, was set originally as a separate unit. It has separate technology. It's operating on cloud on a different platform from Bancolombia. That possibility is there, and we will go in that direction when it's the right time to do it. Perfect. Thank you very much. Our next question is from Jason Molins with Scotiabank. Please go ahead. Hello, everyone. I have two questions. My first is on the evolution of loan loss provisions. We saw the material declines boost the bottom line. Can you help us understand, and looking at the income statement and the balance sheet, if we saw a reversal of some provisions in the quarter or consuming some provisions? What could drive that helped create the lower level of provisioning and cost of risk in the quarter? My second question is on the movements in shareholders' equity. We're faced with this whenever we have the volatility in the FX. In the first three months of 2021, we saw a depreciation of the currency of 7%, and you have your investments in Central America in dollars. If you can help us quantify the impact on the consolidated level of the movement in FX on shareholders' equity, that would be helpful. Thank you. Thank you, Jason, for your questions. Let me pass them to José Humberto Acosta. José Thank you, Juan Carlos. Yes, Jason, just to characterize the provisions, the drivers from the provisions are basically three main drivers, the macroeconomic numbers, the COVID-19, and the deterioration of the loan portfolio. As you probably saw in the first quarter, the main driver why the provisions in the Central America operation came down was basically because of the macro environment. That's the main force why we suggest that the provision coming down. The other two drivers, which means the COVID-19, that still we are having loans under relief, and the second one, the deterioration of the loan portfolio, these two drivers will push maybe the provisions again to maintain a certain level. That is why we believe that for the next coming three quarters, you are going to see an increase in the level of provisioning because of COVID-19, that we are still having 15% of our loan portfolio under relief, and because the deterioration of the loan portfolio. We are seeing a deterioration not only in 30 days, also in 90 days. What's going to happen in the next coming three quarters is not only in Colombia, also in our operation in Panama, we are going to see a deterioration in this line. Regarding your second question, I have to highlight the fact that the structure of the asset side of the bank, it is 35% in USD, and the structure that we have on the equity side, we have at around 35% of our equity is in USD. This 35% of equity, it is allocated in the three operations that we have in Guatemala, Panama, and it's about plus the operation that we have offshore in Panama. Once there is an FX volatility, even devaluation or appreciation, both sides of the equation moves at the same time, the asset side and the equity side. We are able to maintain the same level of solvency ratio and the same level of Tier 1 ratio because of that. This is a natural protection that we are having on the equity side. Good. Let me ask a follow-up on that. You have your assets in Central America in U.S. dollars, and then you have your liabilities in U.S. dollars, and then the net of your assets and liabilities is your equity. Unless you're hedging the equity investment in U.S. dollars in Central America, isn't that exposed to movements in the currency? As a follow-up for the provisions in Central America moving on the macro outlook, and I guess they're better than they were, the expectations, is that what you're suggesting? Were you able to actually, would you characterize it as reversing provisions in Central America that you had already made based on tougher expectations for the outlook? Jason, regarding your second question, that was because what happened in the first quarter, again, not only in Colombia, also in the international operation, you are going to see a deterioration of the loan portfolio. We are going to see an increase in the level of provisioning in the international operation. The only one factor that affects was in the first quarter, that was because of the macro. Right now, we are not going to be affected anymore because of the macro, we are going to be affected because of COVID-19, that generate provisions, and because also the deterioration of the loan portfolio in all of our four geographies. Regarding your first question, yes, we increase our level of equity because of FX. If there is a devaluation, our equity increase and at the same level of the asset increase. The thing that I suggest, maybe we have to call with you just to clarify the movements that there is on the equity accounts internally, just to make clear how it moves depends on FX variations, Jason. That would be great. Yeah, if we could get a statement of changes in equity, I know you guys typically send that in a few weeks. That would be helpful after the results so we could understand that. Thank you very much. Thank you, Jason. Thank you, Jos é. Our next question is from Sebastián Gallego with Credicorp Capital. Please go ahead. Yes. Hello. Good morning, everyone, and thank you for the presentation. I have two questions today. The first one on Panama, if you could go a little bit deeper on the evolution of the economy, even now during the second quarter, and how do you expect the customer payment behavior to evolve? We understand that there is still a moratorium law in place, how are you perceiving customer payment behavior during the second quarter will be helpful alongside with some comments on the macro side. The second question is probably a follow-up on ROE. You have mentioned some guidance, you seem to be reluctant to mention ROE guidance. Last quarter, you mentioned a 4%-5% ROE expectation for 2021. Could you provide some range, how do you see ROE evolving over the next years given current conditions? Thank you. Thank you, Sebastian. Let me elaborate a little bit on the current situation in Panama, and then I will ask Juan Pablo Espinosa to give you some color about Panama. I will also answer your question about ROE. In Panama, as you mentioned, still there is a moratorium that goes until June, so we will need to wait until June, and after that, we will know how the customers or the clients are going to behave in terms of payments. What we have seen so far is a better performance of what we were expecting. Many clients are paying. They are still under the moratorium, but they are paying their obligations. We are seeing a better performance of what we were expecting. We need to be cautious because still there are a lot of clients under the moratorium. We are cautious, and we will need to wait until the second semester to see how is going to be the performance. So far, the behavior is better as we were expecting. Also, the demand for loans is behaving better than we were expecting. First quarter, even though we are cautious about the evolution for the rest of the year, especially the second half of the year, the performance so far is better than expected. Regarding ROE, before I pass to Juan Pablo for some comments on the macro aspect of Panama. We still think that our ROE for the whole year is going to be around 5%-6%. We had a better performance during the first quarter, but we prefer to be cautious. As you all know, the cost of risk is going to be key. The first quarter had a very good behavior, much better than we were expected. We will need to wait and see how the pandemic is going to evolve and how the economic activity is also evolving. We prefer to be cautious and maintain our expectations of a ROE around 6%. Juan Pablo, I don't know if you have any additional comments on the macro situation of Panama. Yes, Juan Carlos. I would say that in general, activity indicators this year point to a better performance after the sharp contraction that we saw last year. Actually, that has translated into an expectation of a recovery of GDP this year almost in the two-digit area. For example, latest forecast by the IMF is 12% for the year. From the World Bank, 9.9%. The latest official estimate is 9%. All these figures point to a recovery that will not put the country this year again in pre-COVID levels, but will surely be a better outcome and the start of a recovery process that we would expect to gain traction as the year passes. One additional thing I would like to comment is that in Panama as well in Colombia, both the evolution of the pandemic and vaccination plans is going to be key for the outlook this year. What I would like to highlight is that Panama is doing better than Colombia in terms of vaccination. At this moment, around almost 12% of total population in Panama has got at least one dose of COVID-19 vaccines, which is double of Colombia's figure. If vaccination plans evolve well, we would be optimistic, especially for the second half of the year, in terms of Panama's activity gaining more traction. Very clear. Thank you very much. Thank you, Sebastian. Our next question is from Alonso García with Credit Suisse. Please go ahead. Hi. Good morning, everyone. Thank you for taking my question. My question is actually a follow-up on Nequi and Bancolombia A La Mano. I don't know if you could please comment on how you see the competitive landscape in terms of fintechs and digital banking in Colombia. Who are you competing mainly with? How is the market behaving in terms of competition in that segment? That would be my question. Thank you. Thank you, Alonso. Different from other markets, in Colombia, the banks, we started to develop a platform for financial inclusion years ago. In our case, we started in 2015, as well as other banks. We started to develop these platforms, and now I think those platforms are the leaders of the market. Fintechs are coming, of course, as in other markets, but the leading platforms are run by banks. We and another bank, which is very peculiar of the Colombian market. On the shoulders of these platforms, bancarization is improving very well. People now is having access to financial services in a very convenient way with possibilities of doing digital banking everywhere in the country. I think competition is going to increase. The Colombian market has, as you know, a cap on interest rates, which is a different landscape than other markets in Latin America, like Brazil or Mexico, in which the newcomers could charge very high interest rates. In our case, we are operating this market for a long time. We know how to operate with cap rates. Also, we are allowing our new clients to access not just digital platforms, but the networks of the traditional channels of the bank, just to mention ATMs. That leverages our ability to compete. Of course, as I mentioned, competition is going to increase, but I think we are very well positioned to continue increasing our presence in the market. Our clients are using our services, and we are adding new features to the platforms. Payments are going very well. People are using the platform to pay and to transfer money. They are using the cards. We are very positive that the trend that we are seeing will continue, Alonso. That was very clear. Thank you very much. Thank you. Our next question is from Carlos Gómez-López with HSBC. Please go ahead. Hello, good morning, and thank you for taking the questions. I wanted to ask you specifically about Guatemala. Maybe you commented on this earlier in the call. There was almost no provisions there, so I wanted to know exactly why that was the case. Second, in general, about Central America, with the changes that we see from the pandemic and your experience over the years, you operate in three different markets. Do you feel the need to expand or contract in any of these markets? Do you see opportunities with the pandemic for you perhaps to take over weaker institutions? Is that something that we could expect? Finally, have you considered the issuance of AT1 paper like Davivienda just did? Thank you. Thank you, Carlos. Let me take your second question about Central America, and I will pass the others to José Humberto Acosta. We see opportunities in Central America. We see markets that are developing, and we see an opportunity to develop some of the tools and platforms that we are implementing in Colombia in those markets. As was mentioned, Guatemala was or has been one of the countries that was less impacted by the pandemic. Economic activity is recovering fast. We are introducing new ways of serving our clients in that market that we are optimistic that will allow us to gain market share. In El Salvador, we have a very good performance there. The bank is performing well, it is strong. The economy is in reasonable condition. We see opportunities there, but more on bringing to those markets the new platforms, the digital channels, digital sales to reach much more customers. There is a big room for bancarization in Guatemala and El Salvador, and we see an opportunity there, and we will take that opportunity. Panama, it's a different situation. We will see more opportunities in Panama once the economy of the world recovers and international trade improves. Panama will play a key role there. Jos é, could you take the other two questions from please? Yes, Juan. Thank you, Carlos. Regarding your first question, Guatemala. The Guatemala operation is a combination of positive factors. First, we are seeing a positive loan growth, both in corporate and retail. We are seeing also a very good performance in terms of efficiency, in terms of expenses. We are seeing a very good outlook of the country. That is the main reason why the provisioning level came down, because of the updating of the macroeconomic outlook. Of course, for the next coming quarters, we are going to see how the performance of the loan book behave. Today, we have 0% under release in Guatemala. We are going to see maybe an increase in provisioning, but basically because of the deterioration of the loan portfolio. Regarding your last question, the AT1. AT1 is a possibility for banks to increase the Tier 1 ratio. That was a very opportunistic transaction. I would say that was a very good opportunity to take advantage of the market. Should I understand that that is something that you might consider? Excuse me, Carlos? Yeah. Should I understand that the AT1 is the type of instrument that could be interesting for you? You know what? What happened right now with the equity that we are having and the solvency ratio, you see the BIS, we are above the 14% and Tier 1 ratio above 11%. The main driver of the trigger event would be the loan growth. We are expecting the loan growth again, 6%-8%, and a possibility to an AT1. Again, that would be a possibility for all banking industry to go to the market. In our case, the level of capital that we are having today, we feel comfortable with that. Thank you very much. My question here would be a little bit more color on the bonus program, right? In previous years, sometimes this line can be pretty volatile. First, what is expectations for G&A? Second, how do you see the bonus line behaving this year? Thank you. Thank you, Yuri. Let me pass first to Juan Pablo Espinosa to give us his views on the FX rate, and then José Humberto Acosta will rate on the effect of the bank. He already mentioned that and your question regarding bonds. Juan Pablo. Yes, Juan Carlos. What I would say regarding the FX rate is that on the past few weeks, we have seen pressure coming from all the discussions surrounding the fiscal reform in Colombia and recent protests, but also because there has been a change in global financial conditions for emerging markets. In that sense, the movement of the Colombian peso is consistent in terms of trend with what we've seen in other currencies in the region. We expect that there will be some correction for the remainder of the year because, in our opinion, current levels contain an overreaction to recent events. We would expect that as the reform goes through the Congress and is at the end approved, there will be some relief in the next few months. We expect that our expectation for the year of being around in the 3,600-3,700 area is feasible for Colombia. Of course, if conditions worsen in the country, well, maybe we could go to another type of a scenario, but our baseline is that that's going to be the case. Thank you, Juan Pablo. Just to give you a general view on expenses that you mentioned. The first quarter, the behavior of expenses was very good. I want you to take into account that the first quarter of 2020 was a normal quarter. The performance of the expenses, the base that we are using to compare, it's normal. We could expect that during the next half of the year expenses will grow since the base that we are going to use is going to be lower since we didn't have variable compensation during the three quarters that followed the first one of 2020. Our expectations around expenses are that they are going to grow because of that comparison base, but also because we will continue on our transformation program, evolving our platforms. We are expecting that expenses will grow in the next quarters. José Humberto, do you want to elaborate a little bit on that and also on the bond question that Yuri asked? Thank you, Juan Carlos. No, I think it's very clear, the explanation about the forecasting and our outlook for the expenses for the whole year. Regarding your question, Yuri, the bonus program, what happened is last year in the first quarter, we were considering a bonus plan, assuming that the year will behave very well. As the pandemic happens in March and April, the rest of the three quarters, we're not considering on that time the bonus plan. Meanwhile, this year, in this first quarter, we are considering a bonus plan, but at a different size than we expected a year ago. That explains why the labor cost drops, because the first quarter of last year, the bonus plan were on a normal basis, and the bonus plan this quarter is on an abnormal basis, which means try to recover a certain level of net income. That explains why. Our outlook for the next three quarters regarding bonus plan is to maintain the same trend that you are seeing in the first quarter. Obviously, all depends on the results and the net income of the bank. That is the main explanation why we see a change in the bonus plan comparison 2020 against 2021. No, thank you, everybody. It's super clear. Thank you very much. Thank you. Thank you, Yuri. Our next question is from Julián Ausique with Davivienda Corredores. Please go ahead. Hi, good morning, everyone. I would like to ask two questions. The first one is regarding the expectation that you have about the growth of the loan portfolio. You said that you expect for the close of the year a growth between 6% and 8%, but if we saw these figures in the first quarter, we just saw an increase of 0.3% in Bancolombia and in the foreign operations. I would like to know what is the base of this expectation of your loans. My other question is regarding the provision. You already mentioned that you expected the provision grow a little bit, but I would like to know if this growth, you are expecting that will be during the second half of the year, or it starts the next quarter. Thanks. Thank you, Julián. Let me pass your questions to José Humberto. Thank you, Juan Carlos. Yes, Julián, the loan growth, it is divided in three different buckets. The first one is commercial, that we expect a loan growth, again, aligned with the growth of the economy, that will be at around 5%-6%. In consumer, we are expecting at around 6%. In mortgage, we are seeing a positive trend during the last three quarters, so we are expecting a loan growth of around 8%-10% in the mortgage business. All this growth we are foreseeing that will happen in the second half of the year. As you probably mentioned, the first quarter, you are not seeing any particular change. In the last weeks, we are seeing a particular change in trend. Probably that will happen third and fourth quarter, the loan growth. Regarding your question about provisions, that will begin next quarter. Next quarter, why? Because you are going to see some of the relief program ending. What happens when the relief program ends, is you are going to see some deterioration. That explains why our view about provision is that in the second and third quarter, you are going to see a higher provisions than you saw here in the first quarter. The main explanation is deterioration of the loan portfolio because of the reliefs and deterioration of the loan portfolio because of the economic situation that we are having this year. If I may, I would like to know, to add to the first question, you expeted a more devaluation of the Colombian peso because I know that the numbers that you gave about the growth in the different loans portfolio are in general, but you expected something different between geographies like Colombia and Central America, and depends on the cost. Right. When we talk about 6%-8%, it's assuming interest rate at the end of the year are around 3,600. Obviously, FX variations will change. Going back to your question, in all the four groups, Bancolombia in Colombia, Guatemala, El Salvador, and Panama, all of the four groups are growing, and the expectation is that will happen in the second half of the year. Maybe in Guatemala, we are seeing an economic activity right now and increasing in the loan book. That will be the only one operation in which we are seeing an important economic activity reflected in the loan book. Okay, thank you. Thank you, Julián. There are no further questions registered at this time. Thank you everybody for attending this conference call. We appreciate very much your time. We had a good first quarter. We have a strong balance sheet. We are prepared to face what is coming for the rest of the year. We want to be cautious and wait how things are developing. The bank is well-prepared. We are well-prepared for what is coming. We are optimistic that the situation could improve in the future, but we need to wait the next quarter, the second quarter, to see how the pandemic is going to evolve and if the economic recovery is going strong. We will see you, I hope, in the presentation of our results for the second quarter of the year. Thank you very much. This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.