... expects a steady operating environment (OE) for Colombian banks in 2024, with modest GDP growth and incremental declines in inflation, albeit remaining above the central bank's target of 3+/-1%. Funding costs are expected to gradually decrease, while asset quality should steadily improve. Nonetheless, the Colombian economy's exposure to volatile global markets and persistent political instability may present challenges to economic growth. Fitch believes Banco GNB Sudameris S.A.'s (GNB) conservative risk profile, diverse business model, and strong asset quality and liquidity, along with improving profitability, provide sufficient resilience against pressures stemming from the current challenging OEs of Colombia, Peru and Paraguay. Although the bank has a significant footprint outside of Colombia, its OE score of 'bb' is attributed to the majority of its operations remaining in the country. Diversified Business Model: GNB's Issuer Default Ratings...
