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GOODWILL AND INTANGIBLE ASSETS, NET (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of intangible assets and goodwill, net

Intangibles assets and goodwill net are as follows:


	December 31, 2024	December 31, 2023
In millions of COP
Goodwill	9,017,419	7,818,125
Intangible assets, net	750,484	671,572
Total intangible assets and goodwill, net	9,767,903	8,489,697

Schedule of intangible assets

The following table sets forth the Bank’s intangible assets as of December 31, 2024 and 2023, including the reconciliation of initial and final balances of the cost and accrued amortization:

As of December 31, 2024


Cost	Trademarks	Licenses, software and computer applications	Client relationships	Total
In millions of COP
Balance at January 1, 2024	22,596	1,409,836	440,636	1,873,068
Acquisitions	-	211,456	-	211,456
Write off	-	(85,717)	-	(85,717)
Foreign currency translation adjustment	3,471	119,874	67,686	191,031
Balance at December 31, 2024	26,067	1,655,449	508,322	2,189,838


Amortization	Trademarks	Licenses, software and computer applications	Client relationships	Total
In millions of COP
Balance at January 1, 2024	22,596	741,765	437,135	1,201,496
Write off	-	(76,876)	-	(76,876)
Amortization expense(1)	-	168,647	1,493	170,140
Foreign currency translation adjustment	3,471	73,853	67,270	144,594
Balance at December 31, 2024	26,067	907,389	505,898	1,439,354

Intangible assets at December 31, 2024, net	-	748,060	2,424	750,484

(1)See Note 26.3. Impairment, depreciation and amortization.

As of December 31, 2023


Cost	Trademarks	Licenses, software and computer applications	Client relationships	Total
In millions of COP
Balance at January 1, 2023	28,438	1,361,258	554,558	1,944,254
Acquisitions	-	352,248	-	352,248
Write off	-	(119,482)	-	(119,482)
Foreign currency translation adjustment	(5,842)	(184,188)	(113,922)	(303,952)
Balance at December 31, 2023	22,596	1,409,836	440,636	1,873,068


Amortization	Trademarks	Licenses, software and computer applications	Client relationships	Total
In millions of COP
Balance at January 1, 2023	28,437	765,339	547,947	1,341,723
Write off	-	(119,482)	-	(119,482)
Amortization expense(1)	-	210,333	1,984	212,317
Foreign currency translation adjustment	(5,841)	(114,425)	(112,796)	(233,062)
Balance at December 31, 2023	22,596	741,765	437,135	1,201,496

Intangible assets at December 31, 2023, net	-	668,071	3,501	671,572

(1)See Note 26.3. Impairment, depreciation and amortization.

Schedule of reconciliation of changes in goodwill

The following table presents the goodwill:


	December 31, 2024	December 31, 2023
In millions of COP
Balance at beginning of the year, net	7,818,125	9,836,661
Effect of change in foreign exchange rate(1)	1,199,294	(2,018,536)
Balance at end of the year, net	9,017,419	7,818,125

(1)The market representative rate at the end of December 31, 2024, 2023 and 2022 is COP 4,409.15, COP 3,822.05 and COP 4,810.20, respectively. See Note 2.D.1. Functional currency, transactions and balances in foreign currency.

Summary of key assumptions used by management in determining the recoverable amount

The key assumptions used by management in determining the recoverable amount as of December 31, 2024 and 2023 are:

As of December 31, 2024

Operating segment

Valuation methodology

Key assumptions

Discount rate (real)(1)

Growth rate (real)(2)

Goodwill 2024

In millions of COP

Banking Panama

Discounted Cash flow

5 years plan

10.50

4.40

6,733,971

Banking El Salvador(3)

Discounted Cash flow

5 years plan

14.90% and 14.30%

3.90

1,243,711

Banking Guatemala

Discounted Cash flow

5 years plan

11.70

5.10

1,029,077

Others segments

Comparable multiples

Multiples EV/ Revenue and EV/EBITDA

Does not apply

10,660

Total

9,017,419

(1)The discount rate is the return that would be expected for an investment that generates cash flows similar to those that are expected to be obtained from the use of the CGU. CAPM (Capital Asset Pricing Model) methodology was used as a basis to determine this rate.

(2)This rate is equivalent to the nominal or real growth of the economy in Guatemala, Panama and El Salvador, which is considered an important concept for the growth of the banking industry.

(3)Corresponds to the discount rate used for the short and long term, respectively.

As of December 31, 2023

Operating segment

Valuation methodology

Key assumptions

Discount rate (real)(1)

Growth rate (real)(2)

Goodwill 2023

In millions of COP

Banking Panama

Discounted Cash flow

5 years plan

10.90

4.50

5,837,310

Banking El Salvador(3)

Discounted Cash flow

5 years plan

17.10% and 15.50%

3.70

1,078,105

Banking Guatemala

Discounted Cash flow

5 years plan

12.30

4.80

892,050

Others segments

Comparable multiples

Multiples EV/ Revenue and EV/EBITDA

Does not apply

10,660

Total

7,818,125

(2)This rate is equivalent to the nominal or real growth of the economy in Guatemala, Panama and El Salvador, which is considered an important concept for the growth of the banking industry.

(3)Corresponds to the discount rate used for the short and long term, respectively.

Schedule of estimated recoverable amount of each operating segment obtained as a result of sensitivity analysis

The tables below present the estimated recoverable amount of each operating segment obtained as a result of sensitivity analysis for the discount rate and growth rate in basis points (bips):

As of December 31, 2024

Banking Panama


	+50 bips		Discount rate		-50 bips
Growth rate	11.00	%	10.50	%	10.00	%
4.40%	12,069,096		13,061,970		14,232,692

	-50 bips		Growth rate		+50bips
Discount rate	3.90	%	4.40	%	4.90	%
10.50%	12,512,669		13,061,970		13,709,357

Banking El Salvador


	+100 bips	Discount rate	-100 bips
	15.90%	14.90%	13.90%
Growth rate	15.30%	14.30%	13.30%
3.90%	4,821,361	5,290,874	5,861,625

	-50 bips	Growth rate	+50 bips
Discount rate	3.40%	3.90%	4.40%
14.90% and 14.30%	5,201,761	5,290,874	5,388,987

Banking Guatemala


	+50 bips		Discount rate		-50 bips
Growth rate	12.20	%	11.70	%	11.20	%
5.10%	4,433,281		4,819,854		5,271,139

	-50 bips		Growth rate		+50 bips
Discount rate	4.60	%	5.10	%	5.60	%
11.70%	4,665,498		4,819,854		4,999,513

As of December 31, 2023

Banking Panama


	+50 bips	Discount rate	-50 bips
Growth rate	11.40%	10.90%	10.40%
4.50%	10,826,278	11,721,608	12,770,528

	-50 bips	Growth rate	+50bips
Discount rate	4.00%	4.50%	5.00%
10.90%	11,224,673	11,721,608	12,302,770

Banking El Salvador


	+100 bips		Discount rate		-100 bips
	18.10	%	17.10	%	16.10	%
Growth rate	16.50	%	15.50	%	14.50	%
3.70%	3,909,551		4,241,177		4,634,962

	-50 bips		Growth rate		+50 bips
Discount rate	3.20	%	3.70	%	4.20	%
17.10% and 15.50%	4,182,324		4,241,177		4,305,238

Banking Guatemala


	+50 bips	Discount rate	-50 bips
Growth rate	12.80%	12.30%	11.80%
4.80%	3,903,356	4,224,256	4,592,449

	-50 bips	Growth rate	+50 bips
Discount rate	4.30%	4.80%	5.30%
12.30%	4,090,025	4,224,256	4,377,661

PA FAI Calle 77 acquisition

GOODWILL AND INTANGIBLE ASSETS, NET

Schedule of the estimated fair value of assets acquired and liabilities assumed

The estimate of the fair value of the assets acquired and liabilities assumed was based on information available as of March 1, 2022. The Bank believes that this information provides a reasonable basis for determining fair values:


			In millions of COP
Purchase Price Allocation
Pruchase price on June 9, 2021			56,968
Non-controlling interest at fair value			1,166
TOTAL			58,134

Fair value of net assets acquired
ASSETS
Cash and cash equivalents			799
Accounts receivable			299
Premises and equipment, net			3
Investments property			60,850
Other assets			78
Total Assets			62,029

LIABILITIES
Accounts payable			1,080
Deferred tax			283
Other liabilities			99
Total Liabilities			1,462
Fair value of net assets acquired			60,567

Gain from a bargain purchase			2,433