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SECURITIES AND EXCHANGE COMMISSION
o | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(Translation of Registrant’s name into English)
Republic of Colombia
(Jurisdiction of incorporation or organization)
Carrera 48 # 26-85, Avenida Los Industriales
Medellín, Colombia
(Address of principal executive offices)
Carrera 48 # 26-85, Medellín, Colombia
Tel. +5744041837, Fax. + 574 4045146, e-mail: juatoro@bancolombia.com
(Name, Telephone, E-Mail and/or Facsimile number and Address of Company Contact Person)
Title of each Class | Name of each exchange on which registered | |
American Depositary Shares | New York Stock Exchange | |
Preferred Shares | New York Stock Exchange* |
* | Bancolombia’s preferred shares are not listed for trading directly, but only in connection with its American Depositary Shares, which are evidenced by American Depositary Receipts, each representing 4 preferred shares. |
Not applicable
(Title of Class)
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
Not applicable
(Title of Class)
period covered by the annual report.
Common Shares | 509,704,584 | |||
Preferred Shares | 278,122,419 |
Large accelerated filerþ | Accelerated filero | Non-accelerated filero | Smaller reporting companyo | |||
(Do not check if a smaller reporting company) |
U.S. GAAPo | International Financial Reporting Standards as issued by the International Accounting Standards Boardo | Otherþ |
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• | changes in general economic, business, political, social, fiscal or other conditions in Colombia, or in any of the countries where the Bank operates; | ||
• | changes in capital markets or in markets in general that may affect policies or attitudes towards lending; | ||
• | unanticipated increases in financing and other costs or the inability to obtain additional debt or equity financing on attractive terms; | ||
• | inflation, changes in foreign exchange rates and/or interest rates; | ||
• | sovereign risks; | ||
• | liquidity risks; | ||
• | increases in defaults by the Bank’s borrowers and other loan delinquencies; | ||
• | lack of acceptance of new products or services by the Bank’s targeted customers; | ||
• | competition in the banking, financial services, credit card services, insurance, asset management, remittances business and other industries in which the Bank operates; | ||
• | adverse determination of legal or regulatory disputes or proceedings; | ||
• | changes in official regulations and the Colombian government’s banking policy as well as changes in laws, regulations or policies in the jurisdictions in which the Bank does business; | ||
• | regulatory issues relating to acquisitions; and | ||
• | changes in business strategy. |
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As of and for the year ended December 31, | ||||||||||||||||||||||||
2004 | 2005(9) | 2006 | 2007(10) (12) | 2008 | 2008(1) | |||||||||||||||||||
(In millions of Ps and thousands of US$(1), except per share and per American Depositary Share (“ADS”) amounts) | ||||||||||||||||||||||||
CONSOLIDATED STATEMENT OF OPERATIONS: | ||||||||||||||||||||||||
Colombian GAAP: | ||||||||||||||||||||||||
Interest income | Ps | 1,803,108 | Ps | 3,200,084 | Ps | 3,013,732 | Ps | 4,810,408 | Ps | 6,313,743 | US$ | 2,814,125 | ||||||||||||
Interest expense | (585,743 | ) | (1,150,274 | ) | (1,246,229 | ) | (2,002,090 | ) | (2,753,341 | ) | (1,227,203 | ) | ||||||||||||
Net interest income | 1,217,365 | 2,049,810 | 1,767,503 | 2,808,318 | 3,560,402 | 1,586,922 | ||||||||||||||||||
Provisions for loans and accrued interest losses, net of recoveries(2) | (61,423 | ) | (123,575 | ) | (195,361 | ) | (617,868 | ) | (1,155,262 | ) | (514,917 | ) | ||||||||||||
Provision for foreclosed assets and other assets, net of recoveries(3) | (5,201 | ) | (7,465 | ) | 45,179 | 20,833 | 22,095 | 9,848 | ||||||||||||||||
Net interest income after provisions | 1,150,741 | 1,918,770 | 1,617,321 | 2,211,283 | 2,427,235 | 1,081,853 | ||||||||||||||||||
Fees and income from services and other operating income, net(4) | 574,453 | 962,277 | 1,139,094 | 1,510,129 | 1,964,084 | 875,420 | ||||||||||||||||||
Operating expenses | (912,421 | ) | (1,654,805 | ) | (1,871,000 | ) | (2,271,418 | ) | (2,639,997 | ) | (1,176,684 | ) | ||||||||||||
Net operating income | 812,773 | 1,226,242 | 885,415 | 1,449,994 | 1,751,322 | 780,589 | ||||||||||||||||||
Net non-operating income excluding minority interest | 7,140 | 4,650 | 45,346 | 12,058 | 31,888 | 14,214 | ||||||||||||||||||
Minority interest (loss) | (2,425 | ) | (6,496 | ) | (6,352 | ) | (13,246 | ) | (18,511 | ) | (8,251 | ) | ||||||||||||
Income before income taxes | 817,488 | 1,224,396 | 924,409 | 1,448,806 | 1,764,699 | 786,552 | ||||||||||||||||||
Income taxes | (238,810 | ) | (277,515 | ) | (174,880 | ) | (361,883 | ) | (474,056 | ) | (211,294 | ) | ||||||||||||
Net income | Ps | 578,678 | Ps | 946,881 | Ps | 749,529 | Ps | 1,086,923 | Ps | 1,290,643 | US$ | 575,258 | ||||||||||||
Weighted average of Preferred and Common Shares outstanding(5) | 576,695,395 | 652,882,756 | 727,827,005 | 758,313,771 | 787,827,003 | |||||||||||||||||||
Basic and Diluted net income per share(5) (13) | 1,003 | 1,450 | 1,030 | 1,433 | 1,638 | 0.73 | ||||||||||||||||||
Basic and Diluted net income per ADS(11) (13) | 4,012 | 5,800 | 4,119 | 5,732 | 6,552 | 2.92 | ||||||||||||||||||
Cash dividends declared per share(6) | 376 | 508 | 532 | 568 | 624 | |||||||||||||||||||
Cash dividends declared per share(6)(stated in US Dollars) | 0.16 | 0.22 | 0.24 | 0.28 | 0.28 | |||||||||||||||||||
Cash dividends declared per ADS(11) | 1,504 | 2,032 | 2,128 | 2,272 | 2,496 | |||||||||||||||||||
Cash dividends declared per ADS (stated in US Dollars) | 0.63 | 0.88 | 0.95 | 1.13 | 1.11 | |||||||||||||||||||
U.S. GAAP:(7) | ||||||||||||||||||||||||
Net income | Ps | 642,126 | Ps | 891,121 | Ps | 941,183 | Ps | 1,015,644 | Ps | 849,920 | US$ | 378,821 | ||||||||||||
Basic and Diluted net income per common share(8) | 1,445 | 1,715 | 1,619 | 1,683 | 1,326 | 0.59 | ||||||||||||||||||
Basic and Diluted net income per ADS (8) (11) | 5,780 | 6,860 | 6,476 | 6,732 | 5,304 | 2.36 |
(1) | Amounts stated in U.S. dollars have been translated at the rate of Ps 2,243.59 to US$ 1.00, which is the Representative Market Rate calculated on December 31, 2008 (the last business day of 2008), as reported and certified by the Superintendency of Finance. In this document certain Colombian pesos amounts have been translated into United States dollars at the rate of Ps 2,243.59. Such translations should not be construed as representations that the Colombian pesos amounts represent, or have been or could be converted into, United States dollars at that or any other rate. | |
(2) | Represents the provision for loan, accrued interest losses and other receivables, net and recovery of charged-off loans. Includes a provision for accrued interest losses amounting to Ps 4,483 million, Ps 12,379 million, Ps 14,825 million, Ps 35,543 million and Ps 58,721 million for the years ended December 31, 2004, 2005, 2006, 2007 and 2008, respectively. | |
(3) | Represents the provision for foreclosed assets and other assets and the recovery of provisions for foreclosed assets and other assets. | |
(4) | Represents the total fees and income from services, net and the total other operating income. | |
(5) | The weighted average of preferred and common shares outstanding for fiscal year 2004, include 178,435,787 preferred shares and 398,259,608 common shares. For fiscal year 2005, it included 198,261,641 preferred shares and 454,621,115 common shares. For fiscal years 2006, it included 218,122,421 preferred shares and 509,704,584 common shares. For fiscal year 2007, it included 248,609,187 preferred shares and 509,704,584 common shares. For fiscal year 2008, it included 278,122,419 preferred shares and 509,704,584. | |
(6) | This data is presented on an annualized basis. | |
(7) | See “Note 31. Differences Between Colombian Accounting Principles for Banks and U.S. GAAP” | |
(8) | Under U.S. GAAP, these shares are considered outstanding since the beginning of the earliest period presented. Net income per share under U.S. GAAP is presented on the basis of net income available to common stockholders divided by the weighted average number of common shares outstanding (398,258,607 for 2004; 509,704,584 for 2005, 2006, 2007 and 2008). See “Note 31. Differences Between Colombian Accounting Principles for Banks and U.S. GAAP” | |
(9) | The consolidated statement of operations for the year ended December 31, 2005, includes Conavi and Corfinsura’s results for the full year. For U.S. GAAP purposes, see “Note 31. Differences Between Colombian Accounting Principles for Banks and U.S. GAAP — m) Business combinations”. | |
(10) | The consolidated statement of operations for the year ended December 31, 2007 includes Banagrícola’s results for the full year. For U.S. GAAP purposes, see “Note 31. Differences Between Colombian Accounting Principles for Banks and U.S. GAAP — m) Business combinations”. | |
(11) | Each ADS is equivalent to four preferred shares of Bancolombia. | |
(12) | The consolidated statement of operations for the year 2007 was modified due to reclassifications made particularly in commissions from banking services and other services, administrative and other expenses and other income, with the purpose of better presenting comparative information regarding the gains on the sale of mortgage loans. The selected financial data for 2004 through 2006 has not been reclassified to the 2008 presentation because the amounts are insignificant and do not have a material impact on the consolidated statement of operations for each of the respective years. | |
(13) | Basic and diluted net income per share for any period is defined as consolidated net income divided by weighted average of preferred and common shares outstanding. Basic and diluted net income per share should not be considered as an alternate measure of net income, as determined on a consolidated basis using amounts derived from consolidated statement of operations prepared in accordance with Colombian GAAP. Basic and diluted net income per ADS for any period is defined as basic and diluted net income per share multiplied by four preferred shares of Bancolombia (Each ADS is equivalent to four preferred shares of Bancolombia). Basic and diluted net income per ADS should not be considered in isolation, or as a substitute for net income, as a measure of operating performance or as a substitute for cash flows from operations or as a measure of liquidity. The non-GAAP financial measures described in this footnote are not a substitute for the GAAP measures of financial performance and should not be considered as an alternate measure of net income, as determined on a consolidated basis using amounts derived from consolidated statement of operations prepared in accordance with Colombian GAAP. |
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As of and for the year ended December 31, | ||||||||||||||||||||||||
2004 | 2005(3) | 2006 | 2007(4) | 2008 | 2008(1) | |||||||||||||||||||
(In millions of Ps and thousands of US$(1), except per share and per American Depositary Share (“ADS”) amounts) | ||||||||||||||||||||||||
CONSOLIDATED BALANCE SHEET | ||||||||||||||||||||||||
Colombian GAAP: | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and due from banks | Ps | 768,514 | Ps | 1,241,435 | Ps | 1,548,752 | Ps | 3,618,619 | Ps | 3,870,927 | US$ | 1,725,328 | ||||||||||||
Overnight funds | 480,846 | 488,587 | 457,614 | 1,609,768 | 1,748,648 | 779,397 | ||||||||||||||||||
Investment securities, net | 5,250,211 | 8,459,703 | 5,677,761 | 5,774,251 | 7,278,276 | 3,244,031 | ||||||||||||||||||
Loans and financial leases, net | 9,600,861 | 17,920,370 | 23,811,391 | 36,245,473 | 42,508,210 | 18,946,514 | ||||||||||||||||||
Accrued interest receivable on loans, net | 121,276 | 198,266 | 255,290 | 398,560 | 505,658 | 225,379 | ||||||||||||||||||
Customers’ acceptances and derivatives | 43,894 | 133,420 | 166,395 | 196,001 | 272,458 | 121,438 | ||||||||||||||||||
Accounts receivable, net | 173,875 | 590,313 | 562,598 | 716,106 | 828,817 | 369,416 | ||||||||||||||||||
Premises and equipment, net | 346,243 | 623,729 | 712,722 | 855,818 | 1,171,117 | 521,984 | ||||||||||||||||||
Operating leases, net | 8,311 | 143,974 | 167,307 | 488,333 | 726,262 | 323,705 | ||||||||||||||||||
Foreclosed assets, net | 12,206 | 31,360 | 18,611 | 32,294 | 24,653 | 10,988 | ||||||||||||||||||
Prepaid expenses and deferred charges | 15,950 | 26,898 | 46,462 | 137,901 | 132,881 | 59,227 | ||||||||||||||||||
Goodwill | 73,607 | 50,959 | 40,164 | 977,095 | 1,008,639 | 449,565 | ||||||||||||||||||
Other assets | 315,394 | 563,588 | 675,265 | 580,642 | 1,093,850 | 487,544 | ||||||||||||||||||
Reappraisal of assets | 267,941 | 330,915 | 348,364 | 520,788 | 612,683 | 273,082 | ||||||||||||||||||
Total assets | Ps | 17,479,129 | Ps | 30,803,517 | Ps | 34,488,696 | Ps | 52,151,649 | Ps | 61,783,079 | US$ | 27,537,598 | ||||||||||||
Liabilities and shareholders’ equity: | ||||||||||||||||||||||||
Deposits | Ps | 11,862,116 | Ps | 18,384,982 | Ps | 23,216,467 | Ps | 34,374,150 | Ps | 40,384,400 | US$ | 17,999,902 | ||||||||||||
Borrowings(5) | 1,104,201 | 3,927,551 | 3,516,426 | 4,851,246 | 5,947,925 | 2,651,075 | ||||||||||||||||||
Other liabilities | 2,422,089 | 5,113,694 | 4,109,191 | 7,726,983 | 9,333,909 | 4,160,256 | ||||||||||||||||||
Shareholders’ equity | 2,090,723 | 3,377,290 | 3,646,612 | 5,199,270 | 6,116,845 | 2,726,365 | ||||||||||||||||||
Total liabilities and shareholders’ equity | Ps | 17,479,129 | Ps | 30,803,517 | Ps | 34,488,696 | Ps | 52,151,649 | Ps | 61,783,079 | US$ | 27,537,598 | ||||||||||||
U.S. GAAP(2): | ||||||||||||||||||||||||
Shareholders’ equity | Ps | 2,267,286 | Ps | 4,125,996 | Ps | 4,549,018 | Ps | 5,937,554 | Ps | 6,422,815 | US$ | 2,862,740 | ||||||||||||
Shareholders’ equity per share (6) | 3,932 | 6,320 | 6,250 | 7,830 | 8,153 | 3.63 | ||||||||||||||||||
Shareholders’ equity per ADS (6) | 15,728 | 25,280 | 25,001 | 31,320 | 32,612 | 14.54 |
(1) | Amounts stated in U.S. dollars have been converted at the rate of Ps 2,243.59 to US$ 1.00, which is the Representative Market Rate calculated on December 31, 2008 (the last business day of 2008) as reported and certified by the Superintendency of Finance. | |
(2) | Refer to Note 31 to the Financial Statements included in this Annual Report for the reconciliation for U.S. GAAP. | |
(3) | The consolidated balance sheet for the year ended December 31, 2005, includes Conavi and Corfinsura’s results. For U.S. GAAP purposes, see “Note 31. Differences Between Colombian Accounting Principles for Banks and U.S. GAAP — m) Business combinations”. | |
(4) | The consolidated statement of operations for the year ended December 31, 2007 includes Banagrícola’s results. For U.S. GAAP purposes, see “Note 31. Differences Between Colombian Accounting Principles for Banks and U.S. GAAP — m) Business combinations”. | |
(5) | Includes interbank borrowing and domestic development banks borrowings and other. | |
(6) | The weighted average (rounded to the nearest million) of preferred and common shares outstanding was 577 million for the fiscal year ended December 31, 2004, 653 million for the fiscal year ended December 31, 2005, 728 million for the fiscal year ended December 31, 2006, 758 million for the fiscal year ended December 31, 2007 and 788 million for the fiscal year ended December 31, 2008. Shareholders’ equity per share is equal to Shareholders’ equity under U.S. GAAP divided by the weighted average of preferred and common shares outstanding, shareholders’ equity per ADS is equal to shareholders’equity per share multiplied by four preferred shares of Bancolombia (Each ADS is equivalent to four preferred shares of Bancolombia). Shareholders’ equity per share and shareholders’ equity per ADS should not be considered in isolation, or as a substitute for net income, as a measure of operating performance or as a substitute for cash flows from operations or as a measure of liquidity. The non-GAAP financial measures described in this footnote are not a substitute for the GAAP measures of financial performance. Should not be considered as an alternate measure of shareholders’ equity as determined on a consolidated basis using amounts derived from consolidated balance sheet prepared in accordance with Colombian GAAP. |
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As of and for the year ended December 31, | ||||||||||||||||||||
2004 | 2005(10) | 2006 | 2007(11)(12) | 2008 | ||||||||||||||||
(Percentages, except for operating data) | ||||||||||||||||||||
SELECTED RATIOS:(1) | ||||||||||||||||||||
Colombian GAAP: | ||||||||||||||||||||
Profitability ratios: | ||||||||||||||||||||
Net interest margin(2) | 8.75 | 8.12 | 6.19 | 7.60 | 7.70 | |||||||||||||||
Return on average total assets(3) | 3.62 | 3.30 | 2.31 | 2.52 | 2.34 | |||||||||||||||
Return on average shareholders’ equity(4) | 32.14 | 31.49 | 22.10 | 26.13 | 23.68 | |||||||||||||||
Efficiency Ratio: | ||||||||||||||||||||
Operating expenses as a percentage of interest, fees, services and other operating income | 50.92 | 54.94 | 64.37 | 52.60 | 47.79 | |||||||||||||||
Capital ratios: | ||||||||||||||||||||
Period-end shareholders’ equity as a percentage of period-end total assets | 11.96 | 10.96 | 10.57 | 9.97 | 9.90 | |||||||||||||||
Period-end regulatory capital as a percentage of period-end risk- weighted assets(5) | 13.44 | 10.93 | 11.05 | 12.67 | 11.24 | |||||||||||||||
Credit quality data: | ||||||||||||||||||||
Non-performing loans as a percentage of total loans(6) | 0.88 | 1.48 | 1.36 | 1.77 | 2.35 | |||||||||||||||
“C”, “D” and “E” loans as a percentage of total loans(9) | 3.86 | 3.38 | 2.54 | 3.10 | 4.40 | |||||||||||||||
Allowance for loan and accrued interest losses as a percentage of non-performing loans | 496.30 | 259.02 | 252.87 | 223.67 | 224.53 | |||||||||||||||
Allowance for loan and accrued interest losses as a percentage of “C”, “D” and “E” loans(9) | 113.47 | 113.59 | 135.06 | 127.38 | 120.21 | |||||||||||||||
Allowance for loan and accrued interest losses as a percentage of total loans | 4.37 | 3.84 | 3.43 | 3.95 | 5.29 | |||||||||||||||
OPERATING DATA: | ||||||||||||||||||||
Number of branches(7) | 377 | 678 | 701 | 888 | 892 | |||||||||||||||
Number of employees(8) | 8,609 | 14,562 | 16,222 | 24,836 | 19,728 |
(1) | Ratios were calculated on the basis of monthly averages. | |
(2) | Net interest income divided by average interest-earning assets. | |
(3) | Net income divided by average total assets. | |
(4) | Net income divided by average shareholders’ equity. | |
(5) | For an explanation of risk-weighted assets and Technical Capital, see “Item 4. Information on the Company — B. Business Overview — B.7. Supervision and Regulation — Capital Adequacy Requirements”. | |
(6) | Non-performing loans are small business loans that are past due 30 days or more, mortgage and consumer loans that are past due 60 days or more and commercial loans that are past due 90 days or more. (Each category includes financial leases). | |
(7) | Number of branches includes branches of the Bank’s Subsidiaries. | |
(8) | The number of employees includes employees of the Bank’s consolidated Subsidiaries. | |
(9) | See “Item 4. Information on the Company — E. Selected Statistical Information — E.3. Loan Portfolio — Classication of the loan portfolio and Credit Categories for a description of “C”, “D” and “E” Loans”. | |
(10) | Selected ratios for the year ended December 31, 2005, include Conavi and Corfinsura’s results. For U.S. GAAP purposes, see “Note 31. Differences Between Colombian Accounting Principles for Banks and U.S. GAAP — m) Business combinations”. | |
(11) | Selected ratios for the year ended December 31, 2007 include Banagrícola’s results. For U.S. GAAP purposes, see “Note 31. Differences Between Colombian Accounting Principles for Banks and U.S. GAAP — m) Business combinations”. | |
(12) | The selected ratios for the year 2007 were modified to reflect certain reclassifications made in commissions from banking services and other services, administrative and other expenses and other income that conform to the presentation of 2008 figures, in order to provide a better basis of comparison with respect to 2008 figures regarding the gains on the sale of mortgage loans. No such changes were made for 2006, as the reclassifications would not have a material impact on the figures for that period, and accordingly, would not be material for comparative purposes. |
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Month | Low | High | ||||||
December 2008 | 2,163.14 | 2,333.54 | ||||||
January 2009 | 2,197.72 | 2,420.26 | ||||||
February 2009 | 2,420.26 | 2,596.37 | ||||||
March 2009 | 2,335.29 | 2,590.97 | ||||||
April 2009 | 2,283.20 | 2,544.24 | ||||||
May 2009 | 2,140.66 | 2,288.64 | ||||||
June 2009(1) | 2,014.91 | 2,188.50 |
(1) | Figures are as of June 26, 2009 |
Peso/US$ 1.00 | ||||
Representative Market Rate | ||||
Period | Average | |||
2004 | 2,614.79 | |||
2005 | 2,320.77 | |||
2006 | 2,359.13 | |||
2007 | 2,069.21 | |||
2008 | 1,993.80 |
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• | Ps 61,783 billion in total assets; | ||
• | Ps 42,508 billion in total net loans and financial leases; | ||
• | Ps 40,384 billion in total deposits; and | ||
• | Ps 6,117 billion in shareholders’ equity. |
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Capital Expenditures (Ps million) | 2006 | 2007 | 2008 | Total | ||||||||||||
Banagrícola S.A. | — | Ps | 1,776,310 | Ps | 2,503 | Ps | 1,778,813 | |||||||||
Inversiones Financieras Banco Agrícola S.A. | — | 608,365 | 865 | 609,230 | ||||||||||||
Banco Agrícola S.A. | — | 94,384 | 3,951 | 98,335 | ||||||||||||
Compañía de Financiamiento Comercial Sufinanciamiento S.A. | 8 | 79,981 | 24,997 | 104,986 | ||||||||||||
Renting Colombia S.A. | — | 67,043 | 7,774 | 74,817 | ||||||||||||
Aseguradora Suiza Salvadoreña S.A. | — | — | 605 | 605 | ||||||||||||
Asesuisa, S.A. | — | — | 605 | 605 | ||||||||||||
Asesuisa Vida S.A. | — | 11,947 | — | 11,947 | ||||||||||||
Suleasing International USA Inc. | 8,685 | 6,446 | — | 15,131 | ||||||||||||
Sutecnología S.A. | 1,192 | 3,067 | — | 4,259 | ||||||||||||
Suramericana de Inversiones S.A. | — | 1,311 | — | 1,311 | ||||||||||||
Leasing Bancolombia S.A. | 30,999 | 1,157 | — | 32,156 | ||||||||||||
FCP Colombia Inmobiliaria | — | — | 26,595 | 26,595 | ||||||||||||
Fiduciaria Bancolombia S.A. | — | 31 | — | 31 | ||||||||||||
Factoring Bancolombia S.A. | 44,238 | 10 | 5,000 | 49,248 | ||||||||||||
Fondo de Inversión en arrendamiento operativo | — | — | 21,089 | 21,089 | ||||||||||||
3001 S.A. | 14,551 | — | — | 14,551 | ||||||||||||
VISA Inc. | — | — | 5,237 | 5,237 | ||||||||||||
Transportempo S.A. | — | — | 2,493 | 2,493 | ||||||||||||
Renting Peru S.A.C. | — | — | 4,936 | 4,936 | ||||||||||||
Inversiones IVL S.A. | — | — | 4,757 | 4,757 | ||||||||||||
Others | 7,469 | 3,860 | 5,076 | 16,405 | ||||||||||||
Total Expenditures | Ps | 107,142 | Ps | 2,653,912 | Ps | 115,878 | Ps | 2,876,932 | ||||||||
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Divestitures (Ps million) | 2006 | 2007 | 2008 | Total | ||||||||||||
Acerias Paz del Río | — | — | 56 | 56 | ||||||||||||
Banco de Crédito | — | — | 268 | 268 | ||||||||||||
Almacenar S.A.(2) | — | 14,262 | — | 14,262 | ||||||||||||
Inversiones IVL S.A.(2) | — | 9,542 | — | 9,542 | ||||||||||||
Sociedad Portuaria Regional de Buenaventura S.A.(2) | — | 4,917 | — | 4,917 | ||||||||||||
Terminal Marítimo Muelles El Bosque S.A.(2) | — | 3,320 | — | 3,320 | ||||||||||||
Bolsa de Valores de Colombia S.A.(2) | — | 2,261 | — | 2,261 | ||||||||||||
Carreteras Nacionales del Meta S.A.(2) | 5,509 | — | — | 5,509 | ||||||||||||
Fideicomiso Devinorte S.A.(2) | 5,277 | — | — | 5,277 | ||||||||||||
Venrepa C.A.(1) | 2,535 | — | — | 2,535 | ||||||||||||
3001 S.A.(3) | 34,873 | — | — | 34,873 | ||||||||||||
Suramericana de Inversiones S.A.(2) | 67,004 | — | 1,675 | 68,679 | ||||||||||||
Lab Investment & Logistics S.A.(2) | 17,704 | — | — | 17,704 | ||||||||||||
Multienlace(2) | — | — | 13,710 | 13,710 | ||||||||||||
Bolsa de Valores de Colombia(2) | — | — | 13,468 | 13,468 | ||||||||||||
Fundicom S.A. (2) | — | — | 11,789 | 11,789 | ||||||||||||
Promotora La Alborada(2) | — | — | 14,001 | 14,001 | ||||||||||||
P.A. Renting Colombia(2) | — | — | 13,296 | 13,296 | ||||||||||||
Interconexión Eléctrica S.A. (2) | — | — | 1,632 | 1,632 | ||||||||||||
Valores Simesa S.A. (2) | — | — | 1,248 | 1,248 | ||||||||||||
Inversiones Valsimesa S.A. (2) | — | — | 1,119 | 1,119 | ||||||||||||
Others(1) (2) | 314 | 2,093 | 3,129 | 5,536 | ||||||||||||
Total Divestitures | Ps | 133,216 | Ps | 36,395 | Ps | 75,391 | Ps | 245,002 | ||||||||
(1) | Investments Charged-off | |
(2) | Investments Sold | |
(3) | Settlement |
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Retail and | Corporate | |||||||||||||||||||||||||||
Small | and | Offshore | ||||||||||||||||||||||||||
Business | Governmental | Commercial | All other | |||||||||||||||||||||||||
Banking | Banking | Treasury | Banking | Leasing | Segments | Total | ||||||||||||||||||||||
Revenues from external customers | Ps | 547,311 | Ps | 169,871 | — | Ps | 130 | Ps | 38,515 | Ps | 222,699 | Ps | 978,526 | |||||||||||||||
Revenues and expenses from transactions with other operating segments of the Bank | — | 60,861 | — | 12,493 | 12,691 | 73,058 | 159,103 | |||||||||||||||||||||
Interest income | 1,201,392 | 864,665 | 343,496 | 495,222 | 437,977 | 274,651 | 3,617,403 | |||||||||||||||||||||
Provision for loans losses | Ps | 130,613 | Ps | (50,742 | ) | Ps | (30,134 | ) | Ps | 13,316 | Ps | 51,741 | Ps | 87,978 | Ps | 202,772 |
Retail and Small | Corporate and | Offshore | ||||||||||||||||||||||||||
Business | Governmental | Commercial | All other | |||||||||||||||||||||||||
Banking | Banking | Treasury | Banking | Leasing | Segments | Total | ||||||||||||||||||||||
Revenues from external customers | Ps | 801,924 | Ps | 179,491 | Ps | (2,302 | ) | Ps | 11,858 | Ps | 84,086 | Ps | 261,692 | Ps | 1,336,749 | |||||||||||||
Revenues and expenses from transactions with other operating segments of the Bank | (10,844 | ) | 25,309 | 10,655 | 148,783 | 1,345 | 317,738 | 492,986 | ||||||||||||||||||||
Interest income | 2,019,666 | 1,385,482 | 507,934 | 299,067 | 624,606 | 424,687 | 5,261,442 | |||||||||||||||||||||
Provision for loans losses | Ps | 421,576 | Ps | 187,766 | Ps | (14,634 | ) | Ps | 19,271 | Ps | 108,538 | Ps | 26,111 | Ps | 748,628 |
Retail and | Corporate | |||||||||||||||||||||||||||
Small | and | Offshore | ||||||||||||||||||||||||||
Business | Governmental | Commercial | All other | |||||||||||||||||||||||||
Banking | Banking | Treasury | Banking | Leasing | Segments | Total | ||||||||||||||||||||||
Revenues from external customers | Ps | 913,333 | Ps | 206,529 | Ps | 14,244 | Ps | 5,303 | Ps | 245,739 | Ps | 318,071 | Ps | 1,703,219 | ||||||||||||||
Revenues and expenses from transactions with other operating segments of the Bank | (11,117 | ) | 57,992 | (5,175 | ) | 38,642 | 8,427 | 167,611 | 256,380 | |||||||||||||||||||
Interest income | 2,730,204 | 1,839,523 | 602,931 | 260,652 | 848,623 | 1,024,001 | 7,305,934 | |||||||||||||||||||||
Provision for loans losses | Ps | 802,255 | Ps | 330,148 | Ps | (11,261 | ) | Ps | 16,001 | Ps | 143,234 | Ps | 38,352 | Ps | 1,318,729 |
(1) | The methodology used for segment disclosure was changed for purposes of comparability. The segments Retail and Small Business Banking were combined in a single segment as part of the new organizational structure defined by the Bank. The segments Corporate Banking and Governmental Banking were also combined in a single segment. | |
(2) | The segment disclosure was modified to reflect certain reclassifications made in commissions from banking services and other services, administrative and other expenses and other income that conform to the presentation of 2008 figures, in order to provide a better basis of comparison with respect to 2008 figures regarding the gains on the sale of mortgage loans. No such changes were made for 2006, as the reclassifications would not have a material impact on the figures for that period, and accordingly, would not be material for comparative purposes. |
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As of December 31, | ||||||||||||||||||||||||
2006 | 2007(2) | 2008 | ||||||||||||||||||||||
(Ps million) | ||||||||||||||||||||||||
Long-Term | Long-Term | Long-Term | ||||||||||||||||||||||
Geographic Information | Revenues | Term - Assets(1) | Revenues | Term - Assets | Revenues | Term - Assets(1) | ||||||||||||||||||
Colombia | Ps | 3,801,365 | Ps | 878,917 | Ps | 5,540,069 | Ps | 1,202,108 | Ps | 7,558,997 | Ps | 1,718,190 | ||||||||||||
Panama and Cayman Islands | 512,629 | 12,285 | 515,749 | 10,242 | 260,282 | 10,476 | ||||||||||||||||||
Puerto Rico | 37,171 | 141 | 51,765 | 164 | 39,191 | 238 | ||||||||||||||||||
Perú | — | — | 357 | 6,706 | 8,319 | 22,453 | ||||||||||||||||||
El Salvador | — | — | 774,026 | 143,658 | 759,587 | 148,422 | ||||||||||||||||||
USA | 31,630 | 928 | 48,010 | 115 | 42,770 | 199 | ||||||||||||||||||
Total | 4,382,795 | 892,271 | 6,929,976 | 1,362,993 | 8,669,146 | 1,899,978 | ||||||||||||||||||
Eliminations of intersegment operations | (159,103 | ) | (13 | ) | (492,986 | ) | 11 | (256,380 | ) | 2,674 | ||||||||||||||
Total, net | Ps | 4,223,692 | Ps | 892,258 | Ps | 6,436,990 | Ps | 1,363,004 | Ps | 8,412,766 | Ps | 1,902,652 | ||||||||||||
(1) | Includes foreclosed assets, net, allowances for foreclosed assets and property, plant and equipment, net. | |
(2) | The segment disclosure was modified to reflect certain reclassifications made in commissions from banking services and other services, administrative and other expenses and other income that conform to the presentation of 2008 figures, in order to provide a better basis of comparison with respect to 2008 figures regarding the gains on the sale of mortgage loans. No such changes were made for 2006, as the reclassifications would not have a material impact on the figures for that period, and accordingly, would not be material for comparative purposes. |
2006 | 2007(4) | 2008 | ||||||||||
(Ps million) | ||||||||||||
Revenues | ||||||||||||
Revenues for reportable segments(1) | Ps | 4,755,032 | Ps | 7,091,177 | Ps | 9,265,533 | ||||||
Non-operating income(2) | (372,237 | ) | (161,201 | ) | (596,387 | ) | ||||||
Elimination of intersegment revenues | (159,103 | ) | (492,986 | ) | (256,380 | ) | ||||||
Total revenues for reportable segments(3) | Ps | 4,223,692 | Ps | 6,436,990 | Ps | 8,412,766 | ||||||
(1) | Total revenues for reportable segments includes Revenues from external customers, revenues and expenses from transactions with other operating segments of the same enterprise and interest income. | |
(2) | Non-operating income represents other income classified as revenue for segment reporting purposes. | |
(3) | Total revenues for reportable segments include interest, fees, other services and other operating income. | |
(4) | The segment disclosure was modified to reflect certain reclassifications made in commissions from banking services and other services, administrative and other expenses and other income that conform to the presentation of 2008 figures, in order to provide a better basis of comparison with respect to 2008 figures regarding the gains on the sale of mortgage loans. No such changes were made for 2006, as the reclassifications would not have a material impact on the figures for that period, and accordingly, would not be material for comparative purposes. |
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For the years | Growth | |||||||||||||||
2006 | 2007(1) | 2008 | 2008/2007 | |||||||||||||
(Ps million) | ||||||||||||||||
Main fees and commissions | ||||||||||||||||
Commissions from banking services | Ps | 162,273 | Ps | 279,528 | Ps | 238,918 | (14.53 | )% | ||||||||
Electronic services and ATMs fees | 85,049 | 80,711 | 86,070 | 6.64 | % | |||||||||||
Branch network services | 62,403 | 104,601 | 104,010 | (0.57 | )% | |||||||||||
Collections and payments fees | 74,708 | 130,421 | 157,281 | 20.59 | % | |||||||||||
Credit card merchant fees | 8,150 | 39,191 | 32,215 | (17.80 | )% | |||||||||||
Credit and debit card annual fees | 238,898 | 293,583 | 446,647 | 52.14 | % | |||||||||||
Checking fees | 60,083 | 67,438 | 67,963 | 0.78 | % | |||||||||||
Warehouse services | 72,494 | — | — | — | ||||||||||||
Fiduciary activities | 62,114 | 69,200 | 98,799 | 42.77 | % | |||||||||||
Pension plan administration | — | 82,453 | 87,826 | 6.52 | % | |||||||||||
Brokerage fees | 67,034 | 62,493 | 54,742 | (12.40 | )% | |||||||||||
Check remittance | 11,040 | 22,762 | 26,148 | 14.88 | % | |||||||||||
International operations | 34,281 | 43,643 | 47,962 | 9.90 | % | |||||||||||
Fees and other service expenses | (70,866 | ) | (116,453 | ) | (134,939 | ) | 15.87 | % | ||||||||
Total fees and income from services, net | Ps | 867,661 | Ps | 1,159,571 | Ps | 1,313,642 | 13.29 | % | ||||||||
(1) | The main fees and commissions for the year ended 2007 were modified to reflect certain reclassifications made in commissions from banking services and other services, administrative and other expenses and other income that conform to the presentation of 2008 figures, in order to provide a better basis of comparison with respect to 2008 figures regarding the gains on the sale of mortgage loans. No such changes were made for 2006, as the reclassifications would not have a material impact on the figures for that period, and accordingly, would not be material for comparative purposes. |
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• | Dividends received by the Bank are no longer included in the Treasury segment, but in All Other Segments. | ||
• | Government accounts for small towns and cities were moved from Corporate and Governmental Banking to Retail and Small Business Banking. | ||
• | Depreciation and amortization expense for the Retail and Small Business Banking, Corporate and Governmental Banking, and Treasury segments are now distributed proportional to assets and not to administrative expenses. | ||
• | Time deposits sold by the Treasury division are no longer included in Corporate and Governmental Banking, but in Treasury. | ||
• | Goodwill is included as an amortization within All Other Segments. |
• | Preferential: Serves individuals with monthly income equal or greater than 15 SMMLV. | ||
• | Personal Plus: Serves individuals with monthly income between 2 and 15 SMMLV. | ||
• | Personal: Serves individuals with monthly income below 2 SMMLV. | ||
• | Government (small towns and cities): Serves State-owned and official institutions with annual revenues lower than 32,500 SMMLV. | ||
• | SME: Serves small and medium enterprises with annual sales between 542 and 32,500 SMMLV. | ||
• | Entrepreneurial: Serves corporations with annual sales above 542 SMMLV. | ||
• | Colombians abroad: Serves Colombian citizens living outside of Colombia. | ||
• | Private Banking: Provides private banking services to clients with assets under management above US$150,000. |
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Number of branches | Number of branches | |||||||
Company | 2007 | 2008 | ||||||
Bancolombia (unconsolidated) | 719 | 717 | ||||||
Bancolombia Panamá | 1 | 1 | ||||||
Leasing Bancolombia | 10 | 10 | ||||||
Renting Colombia | 4 | 4 | ||||||
Valores Bancolombia | 7 | 7 | ||||||
Suvalor Panama | 1 | 1 | ||||||
Banca de Inversión Bancolombia | 2 | 2 | ||||||
Fiduciaria Bancolombia | 6 | 6 | ||||||
Bancolombia Puerto Rico International Inc. | 1 | 1 | ||||||
Factoring Bancolombia | 5 | 5 | ||||||
Sufinanciamiento | 6 | 8 | ||||||
Renting Peru S.A.C | 1 | 1 | ||||||
Tempo Rent a Car | 5 | 8 | ||||||
Inversiones CFNS | 1 | 1 | ||||||
Banco Agrícola | 107 | 107 | ||||||
Arrendadora Financiera S.A. | 1 | 1 | ||||||
Bursabac S.A. de C.V | 1 | 1 | ||||||
AFP Crecer S.A. | 6 | 6 | ||||||
Aseguradora Suiza Salvadoreña S.A. | 1 | 1 | ||||||
Asesuisa Vida S.A. | 1 | 1 | ||||||
Multienlace S.A. | 2 | — | ||||||
Total | 888 | 892 | ||||||
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• | E-Pagos, a button exclusively for the Bank’s customers through which they can make purchases and payments via the internet. |
• | Electronic Services Supplier (Proveedor de Servicios Electrónicos, or “PSE”), a centralized, standardized system, developed by ACH Colombia S.A. (“ACH”), an independent company, through which companies may allow their users to purchase and pay for items over the internet, debiting the corresponding amounts from the financial institution where the users have their account and transferring these amounts to the payee accounts. This button accepts payments through banks that are part of the ACH network. |
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Past due loan/ | Allowances/ | |||||||||||||||||||||||||||||||||||||||
ROE | ROA | Total loans | Past due loans | Capital Adequacy | ||||||||||||||||||||||||||||||||||||
Dec-07 | Dec-08 | Dec-07 | Dec-08 | Dec-07 | Dec-08 | Dec-07 | Dec-08 | Dec-07 | Dec-08 | |||||||||||||||||||||||||||||||
Bancolombia (unconsolidated) | 15.9 | % | 17.7 | % | 2.4 | % | 2.6 | % | 2.39 | % | 3.07 | % | 169.57 | % | 164.36 | % | 17.4 | % | 14.8 | % | ||||||||||||||||||||
Banco de Bogota | 19.1 | % | 23.2 | % | 2.3 | % | 2.6 | % | 2.25 | % | 2.50 | % | 152.90 | % | 137.01 | % | 10.0 | % | 10.3 | % | ||||||||||||||||||||
Banco de Occidente | 18.8 | % | 24.0 | % | 2.2 | % | 2.6 | % | 2.75 | % | 3.99 | % | 160.98 | % | 216.43 | % | 11.6 | % | 10.6 | % | ||||||||||||||||||||
BBVA | 21.2 | % | 20.2 | % | 1.8 | % | 1.8 | % | 2.49 | % | 4.24 | % | 161.41 | % | 102.00 | % | 10.9 | % | 11.0 | % | ||||||||||||||||||||
Citibank | 13.9 | % | 15.5 | % | 2.2 | % | 2.6 | % | 4.33 | % | 6.03 | % | 109.82 | % | 107.69 | % | 12.8 | % | 14.5 | % | ||||||||||||||||||||
Davivienda | 27.3 | % | 17.8 | % | 2.7 | % | 1.9 | % | 4.15 | % | 4.01 | % | 138.01 | % | 147.41 | % | 12.0 | % | 13.3 | % | ||||||||||||||||||||
Banco Popular | 24.2 | % | 26.2 | % | 2.3 | % | 2.6 | % | 2.24 | % | 2.81 | % | 197.09 | % | 158.68 | % | 9.8 | % | 12.9 | % |
Source: | Superintendency of Finance. | |
* | ROE is return on average shareholders’ equity. | |
** | ROA is return on average assets |
Market Share
Total Net Loans – Market | ||||||||||||
Share % | 2006 | 2007 | 2008 | |||||||||
Bancolombia | 20.62 | 21.70 | 21.99 | |||||||||
Bogotá | 14.19 | 14.09 | 14.69 | |||||||||
Occidente | 6.54 | 6.69 | 6.52 | |||||||||
Citibank | 4.33 | 4.00 | 3.39 | |||||||||
BBVA | 10.64 | 11.11 | 11.30 | |||||||||
Davivienda | 7.80 | 12.22 | 11.93 | |||||||||
Popular | 4.72 | 4.92 | 4.76 |
Source: | Ratios are calculated by Bancolombia based on figures published by the Superintendency of Finance. |
Market Share
Checking Accounts – Market | ||||||||||||
Share % | 2006 | 2007 | 2008 | |||||||||
Bancolombia | 21.80 | 22.61 | 22.12 | |||||||||
Bogotá | 17.29 | 19.15 | 19.28 | |||||||||
Occidente | 15.00 | 14.15 | 13.78 | |||||||||
Citibank | 2.87 | 2.56 | 2.47 | |||||||||
BBVA | 9.85 | 9.91 | 8.97 | |||||||||
Davivienda | 3.95 | 9.84 | 9.38 | |||||||||
Popular | 4.86 | 4.76 | 5.28 |
Source: | Ratios are calculated by Bancolombia based on figures published by the Superintendency of Finance. |
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Market Share
Time Deposits – Market Share % | 2006 | 2007 | 2008 | |||||||||
Bancolombia | 13.39 | 15.09 | 15.54 | |||||||||
Bogotá | 9.26 | 12.95 | 14.22 | |||||||||
Occidente | 3.27 | 3.77 | 4.25 | |||||||||
Citibank | 5.83 | 5.78 | 4.31 | |||||||||
BBVA | 11.01 | 10.73 | 13.94 | |||||||||
Davivienda | 11.76 | 14.57 | 12.56 | |||||||||
Popular | 2.91 | 3.33 | 4.27 |
Source: | Ratios are calculated by Bancolombia based on figures from the Superintendency of Finance. |
Market Share
Saving Accounts – Market | ||||||||||||
Share % | 2006 | 2007 | 2008 | |||||||||
Bancolombia | 20.57 | 19.95 | 21.33 | |||||||||
Bogotá | 12.62 | 12.26 | 13.18 | |||||||||
Occidente | 6.07 | 6.57 | 6.86 | |||||||||
Citibank | 2.89 | 3.07 | 2.70 | |||||||||
BBVA | 13.07 | 13.88 | 11.21 | |||||||||
Davivienda | 9.48 | 13.24 | 12.74 | |||||||||
Popular | 6.80 | 6.87 | 7.43 |
Source: | Ratios are calculated by Bancolombia based on figures from the Superintendency of Finance. |
MARKET SHARE | ||||||||||||||||||||
Assets | Shareholder’s Equity | Loans | Deposits | Profits | ||||||||||||||||
Banco Agrícola | 29.3 | % | 30.4 | % | 29.50 | % | 29.5 | % | 48.1 | % | ||||||||||
Citi | 21.2 | % | 22.9 | % | 19.50 | % | 21.2 | % | 10.6 | % | ||||||||||
HSBC | 16.6 | % | 16.6 | % | 16.20 | % | 16.6 | % | 16.1 | % | ||||||||||
Scotiabank | 15.5 | % | 14.8 | % | 17.30 | % | 14.8 | % | 9.2 | % | ||||||||||
BAC | 8.3 | % | 7.4 | % | 8.60 | % | 7.6 | % | 11.1 | % | ||||||||||
Others | 9.1 | % | 8.0 | % | 8.90 | % | 10.2 | % | 4.9 | % |
Source: ABANSA (Asociación Bancaria Salvadoreña). Figures as of December 31, 2008. |
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• | The Central Bank exercises the customary functions of a central bank, including price stabilization, legal currency issuance, regulation of currency circulation, credit and exchange rate monitoring and administration of international reserves. Its board of directors is the regulatory authority for monetary, currency exchange and credit policies, and is responsible for the direction and execution of the Central Bank’s duties. The Central Bank also acts as a last resort lender to financial institutions. | ||
• | Pursuant to the Colombian Constitution of 1991, the Central Bank has autonomy from the government in the formulation of monetary policy and for administrative matters. Specifically, the Constitution of 1991 established administrative, technical, budgetary and legal autonomy for the Central Bank and its board of directors in respect of monetary, credit and foreign exchange matters. The Central Bank reports only to the National Congress. Its board of directors has seven members, one of whom is the Minister of Finance and Public Credit. |
• | This Ministry designs, coordinates, regulates and executes economic policy, guaranteeing an optimum administration of public finances for the economic and social development of the country. | ||
• | One of the functions of the Ministry of Finance is to regulate in all aspects of finance, securities and insurance activities. It is also responsible for inspecting, supervising and controlling all those entities engaged in such activities, specifically through the Superintendency of Finance. | ||
• | As part of its duties, the Ministry of Finance issues decrees and regulations related mainly, to financial, taxation, customs, public credit and budgetary matters that may affect banking operations in Colombia. |
• | The Superintendency of Finance was created as a result of the merger between the Superintendency of Banking and the Superintendency of Securities through Decree 4327 issued by the President of the Republic of Colombia, in November 2005. | ||
• | All the responsibilities and attributions of the former Superintendency of Banking and Superintendency of Securities set forth in Decree 663 of 1993, as amended, Decree 2739 of 1991, as amended, and Law 964 of 2005, were assigned to the newly created Superintendency of Finance. |
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• | The Superintendency of Finance is a technical branch of the Ministry of Finance that acts as the inspection, supervision and control authority of the financial, insurance and securities exchange sectors and any other activities related to the investment or management of the public’s savings. The Superintendency of Finance has been entrusted with the objective of supervising the Colombian financial system with the purpose of preserving its stability and trustworthiness, as well as promoting, organizing and developing the Colombian securities market and protecting the users of financial and insurance services and investors. | ||
• | Financial institutions must obtain the authorization of the Superintendency of Finance before initiating operations. | ||
• | Violations to provisions of Colombia’s financial system are subject to administrative sanctions and, in some cases, may have criminal consequences. The Superintendency of Finance may inspect Colombian financial institutions on a discretionary basis, and has the authority to impose fines on such institutions, their directors and officers for violations of Colombian laws, regulations, or such financial institutions’ own by-laws. | ||
• | In addition, the Superintendency of Finance continues to make on-site inspections of Colombian financial institutions, including Bancolombia, on a regular basis, as did the Superintendency of Banking. | ||
• | Both as a financial institution and as an issuer of securities traded in the Colombian Stock Exchange, Bancolombia is subject to the supervision and regulation of the Superintendency of Finance. | ||
• | Additionally, Bancolombia’s subsidiaries located in Colombia, which are financial entities, finance corporations, commercial finance companies, trust companies and its brokerage firms are each subject to the supervision and regulation of the Superintendency of Finance. |
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• | outstanding and paid-in capital stock; | ||
• | legal and other reserves; | ||
• | profits retained from prior fiscal years; | ||
• | the total value of the revaluation of equity account (revalorizacion del patrimonio) (if positive) and of the foreign currency translation adjustment account (ajuste por conversion de estados financieros); | ||
• | current fiscal year profits in a proportion equal to the percentage of prior fiscal year profits that were capitalized, or allocated to increase the legal reserve, or all profits that must be used to cover accrued losses; | ||
• | any shares held as guarantee by Fogafin when the entity is in compliance with a recovery program aimed at bringing the Bank back into compliance with capital adequacy requirements (if the Superintendency of Finance establishes that such recovery program has failed, these shares shall not be taken into account when determining the Primary Capital); |
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• | subordinated bonds issued by financial institutions and subscribed by Fogafin when they comply with the requirements stated in the regulations; | ||
• | the part of the surplus capital account from donations that complies with the requirements set forth in the applicable regulation; | ||
• | the value of dividend declared to be paid in shares; and | ||
• | the value of the liabilities owed by minority interests. |
• | any prior or current period losses; | ||
• | the total value of the capital revaluation account (if negative); | ||
• | accumulated inflation adjustment on non-monetary assets (provided that the respective assets have not been transferred); | ||
• | investments in shares, mandatory convertible bonds, subordinated bonds that may be convertible into shares or subordinated debt instruments issued by entities (excluding subsidiaries) subject to the supervision of the Superintendency of Finance excluding appraisals and investments in Finagro credit establishments and investments undertaken pursuant to article 63 of Decree 663 of 1993, subject to the conditions set forth in the regulation; and | ||
• | investments in shares, mandatory convertible bonds, subordinated bonds that may be convertible into shares or subordinated debt instruments issued by foreign financial institutions where the investor directly or indirectly holds at least 20% of the capital of said institution (excluding subsidiaries). This amount includes foreign currency translation and excludes appraisals. |
• | 50% of the accumulated inflation adjustment of non-monetary assets (provided that such assets have not been disposed of); | ||
• | 50% of asset reappraisal (excluding revaluations of foreclosed assets or assets received as payment of credits); | ||
• | mandatory convertible bonds effectively subscribed and paid, with maturities of up to 5 years, (provided that the terms and conditions of their issuance were approved by the Superintendency of Finance and subject to the conditions set forth by the Superintendency of Finance); | ||
• | subordinated monetary obligations as long as said obligations do not exceed 50% of Primary Capital and comply with additional requirements stated in the regulations; | ||
• | the part of the surplus capital account from donations in compliance with the requirements set forth in the applicable regulation; and | ||
• | general allowances made in accordance with the instructions issued by the Superintendency of Finance. |
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• | 50% of the direct or indirect capital investments (in entities subject to the supervision of the Superintendency of Finance excluding subsidiaries) and mandatory convertible bonds reappraisal, in compliance with the requirements set forth in the applicable regulation; |
• | 50% of the direct or indirect capital investments (excluding subsidiaries) and mandatory convertible bonds reappraisal, of foreign financial entities with respect to which the bank’s share is or exceeds 20% of the entity’s subscribed capital. |
• | the value of the devaluation of equity investments with low exchange volume or which are unquoted. |
As of December 31, 2007 | As of December 31, 2008 | |||||||
(Ps million, except percentages) | ||||||||
Subscribed capital | Ps | 460,684 | Ps | 460,684 | ||||
Legal reserve and other reserves | 3,359,604 | 3,975,021 | ||||||
Unappropriated retained earnings | 92,218 | 135,292 | ||||||
Net Income | 1,054,315 | 594,083 | ||||||
Subordinated bonds subscribed by Fogafin | 7,346 | 4,897 | ||||||
Less: | ||||||||
Long — term investments | (91,730 | ) | (79,678 | ) | ||||
Non — monetary inflation adjustment | (153,336 | ) | (118,544 | ) | ||||
Primary capital (Tier I) | Ps | 4,729,101 | Ps | 4,971,755 | ||||
Reappraisal of assets | 121,363 | Ps | 162,932 | |||||
Provision loans | 128,087 | 97,034 | ||||||
Non-monetary inflation adjustment | 81,362 | 63,967 | ||||||
Subordinated bonds | 848,404 | 949,936 | ||||||
Computed secondary capital (Tier II) | Ps | 1,179,216 | Ps | 1,273,869 | ||||
Primary capital (Tier I) | Ps | 4,729,101 | Ps | 4,971,755 | ||||
Secondary capital (up to an amount equal to primary capital) (Tier II) | 1,179,216 | 1,273,869 | ||||||
Technical Capital | Ps | 5,908,317 | Ps | 6,245,624 | ||||
Capital ratios | ||||||||
Primary capital to risk-weighted assets (Tier I) | 10.14 | % | 8.95 | % | ||||
Secondary capital to risk-weighted assets (Tier II) | 2.53 | % | 2.29 | % | ||||
Technical capital to risk-weighted assets | 12.67 | % | 11.24 | % | ||||
Risk-weighted assets including market risk | Ps | 46,628,036 | Ps | 55,542,485 | ||||
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Ordinary Reserve | ||||
Requirements % | ||||
Private demand deposits | 11.0 | |||
Government demand deposits | 11.0 | |||
Other deposits and liabilities | 11.0 | |||
Savings deposits | 11.0 | |||
Time deposits (1) | 4.5 |
(1) | 4.5 % for deposits with maturities under 540 days, and 0% for deposits with maturities above 540 days. |
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Shareholding | ||||||||
Jurisdiction of | directly and | |||||||
Entity | Incorporation | Business | indirectly | |||||
Leasing Bancolombia S.A. | Colombia | Leasing | 100 | % | ||||
Fiduciaria Bancolombia S.A. | Colombia | Trust | 98.81 | % | ||||
Fiduciaria GBC S.A. | Peru | Trust | 98.82 | % | ||||
Bancolombia Panamá S.A. | Panama | Banking | 100 | % | ||||
Bancolombia Caymán | Cayman Islands | Banking | 100 | % | ||||
Sistema de Inversiones y Negocios S.A. | Panama | Investments | 100 | % | ||||
Sinesa Holding Company Ltd. | British Virgin Islands | Investments | 100 | % | ||||
Future Net Inc | Panama | E-commerce | 100 | % | ||||
Banca de Inversión Bancolombia S.A. | Colombia | Investment banking | 100 | % | ||||
Inmobiliaria Bancol S.A. | Colombia | Real estate broker | 99.06 | % | ||||
Valores Simesa S.A. | Colombia | Investments | 70.75 | % | ||||
Todo UNO Colombia S.A. | Colombia | E-commerce | 89.92 | % | ||||
Compañía de Financiamiento Comercial S.A. Sufinanciamiento | Colombia | Financial services | 99.99 | % | ||||
Renting Colombia S.A. | Colombia | Operating leasing | 80.50 | % | ||||
Renting Perú S.A.C. | Peru | Operating leasing | 80.63 | % | ||||
RC Rent a Car S.A. | Colombia | Car rental | 81.51 | % | ||||
Capital Investments SAFI S.A. (CI) | Peru | Trust | 80.63 | % | ||||
Fondo de Inversión en Arrendamiento Operativo Renting Perú | Peru | Car rental | 80.63 | % | ||||
Transportes Empresariales de Occidente Ltda. | Colombia | Transportation | 80.30 | % | ||||
Suleasing Internacional USA Inc | USA | Leasing | 100 | % | ||||
Inversiones CFNS Ltda. | Colombia | Investments | 100 | % | ||||
Valores Bancolombia S.A. | Colombia | Securities brokerage | 100 | % | ||||
Suvalor Panamá S.A. | Panama | Securities brokerage | 100 | % | ||||
Bancolombia Puerto Rico Internacional, Inc | Puerto Rico | Banking | 100 | % | ||||
Inversiones IVL S.A. | Colombia | Investments | 98.25 | % | ||||
Factoring Bancolombia S.A. | Colombia | Financial services | 99.99 | % | ||||
Patrimonio Autónomo CV Sufinanciamiento | Colombia | Loan management | 100 | % | ||||
Banagrícola S.A. | Panama | Investments | 99.12 | % | ||||
Banco Agrícola Panamá S.A. | Panama | Banking | 99.12 | % | ||||
Inversiones Financieras Banco Agrícola S.A. | El Salvador | Investments | 98.38 | % | ||||
Banco Agrícola S.A. | El Salvador | Banking | 96.72 | % | ||||
Arrendadora Financiera S.A. | El Salvador | Leasing | 96.73 | % | ||||
Credibac S.A. de CV | El Salvador | Credit card services | 96.72 | % | ||||
Bursabac S.A. de CV | El Salvador | Securities brokerage | 98.38 | % | ||||
AFP Crecer S.A. | El Salvador | Pension fund | 98.60 | % | ||||
Aseguradora Suiza Salvadoreña S.A. | El Salvador | Insurance company | 95.81 | % | ||||
Asesuisa Vida S.A. | El Salvador | Insurance company | 95.80 | % | ||||
FCP Colombia Inmobiliaria | Colombia | Real estate broker | 64.12 | % |
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Number of | Number of | Net value | ||||||||||
Year ended December 31 | lease contracts | customers | (Ps million) | |||||||||
2006 | 23,497 | 10,380 | 3,158,717 | |||||||||
2007 | 28,932 | 13,103 | 4,190,595 | |||||||||
2008 | 35,663 | 15,571 | 5,680,569 |
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R(p) = | 1 +N(p) | -1 | ||
1 + I |
Where: | ||
R(p)= real average interest rate on peso-denominated assets and liabilities for the period. | ||
N(p)= nominal average interest rate on peso-denominated assets and liabilities for the period. | ||
I= the consumer price index rate in Colombia for the period (based on the Colombian inflation rate). |
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• | average annual balances calculated using actual month-end balances for all of the Bank’s assets and liabilities; |
• | interest income and expense amounts; and |
• | nominal and real interest rates for the Bank’s interest-earning assets and interest-bearing liabilities. |
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Average Balance Sheet and Income from Interest-Earning Assets for the Fiscal Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2006 | 2007(3) | 2008(3) | ||||||||||||||||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | ||||||||||||||||||||||||||||||||||||||||||||
Nominal | Nominal | Real | Nominal | Real | ||||||||||||||||||||||||||||||||||||||||||||
Average | Interest | Interest | Average Real | Average | Interest | Interest | Interest | Average | Interest | Interest | Interest | |||||||||||||||||||||||||||||||||||||
Balance | Earned | Rate | Interest Rate | Balance | Earned | Rate | Rate | Balance | Earned | Rate | Rate | |||||||||||||||||||||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Overnight funds(2) | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | Ps | 36,581 | Ps | 4,695 | 12.8 | % | 8.0 | % | Ps | 120,768 | Ps | 8,251 | 6.8 | % | 1.1 | % | Ps | 428,144 | Ps | 46,198 | 10.8 | % | 2.9 | % | ||||||||||||||||||||||||
U.S. Dollar-denominated | 261,159 | 20,504 | 7.9 | % | 7.9 | % | 828,449 | 86,761 | 10.5 | % | 10.5 | % | 649,167 | 38,869 | 6.0 | % | 6.0 | % | ||||||||||||||||||||||||||||||
Total | 297,740 | 25,199 | 8.5 | % | 949,217 | 95,012 | 10.0 | % | 1,077,311 | 85,067 | 7.9 | % | ||||||||||||||||||||||||||||||||||||
Investment securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 5,102,999 | 144,715 | 2.8 | % | -1.6 | % | 3,769,877 | 302,408 | 8.0 | % | 2.2 | % | 4,387,502 | 406,802 | 9.3 | % | 1.5 | % | ||||||||||||||||||||||||||||||
U.S. Dollar-denominated | 1,792,735 | 128,482 | 7.2 | % | 7.2 | % | 1,534,254 | 114,236 | 7.4 | % | 7.4 | % | 1,705,124 | 24,787 | 1.5 | % | 1.5 | % | ||||||||||||||||||||||||||||||
Total | 6,895,734 | 273,197 | 4.0 | % | 5,304,131 | 416,644 | 7.9 | % | 6,092,626 | 431,589 | 7.1 | % | ||||||||||||||||||||||||||||||||||||
Loans and Financial Leases(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 17,410,381 | 2,397,421 | 13.8 | % | 8.9 | % | 23,450,352 | 3,453,571 | 14.7 | % | 8.6 | % | 28,491,159 | 4,923,704 | 17.3 | % | 8.9 | % | ||||||||||||||||||||||||||||||
U.S. Dollar-denominated | 3,928,500 | 299,251 | 7.6 | % | 7.6 | % | 7,291,171 | 824,869 | 11.3 | % | 11.3 | % | 10,922,602 | 852,242 | 7.8 | % | 7.8 | % | ||||||||||||||||||||||||||||||
Total | 21,338,881 | 2,696,672 | 12.6 | % | 30,741,523 | 4,278,440 | 13.9 | % | 39,413,761 | 5,775,946 | 14.7 | % | ||||||||||||||||||||||||||||||||||||
Total interest-earning assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 22,549,961 | 2,546,831 | 11.3 | % | 6.5 | % | 27,340,997 | 3,764,230 | 13.8 | % | 7.6 | % | 33,306,805 | 5,376,704 | 16.1 | % | 7.9 | % | ||||||||||||||||||||||||||||||
U.S. Dollar-denominated | 5,982,394 | 448,237 | 7.5 | % | 7.5 | % | 9,653,874 | 1,025,866 | 10.6 | % | 10.6 | % | 13,276,893 | 915,898 | 6.9 | % | 6.9 | % | ||||||||||||||||||||||||||||||
Total | 28,532,355 | 2,995,068 | 10.5 | % | 36,994,871 | 4,790,096 | 12.9 | % | 46,583,698 | 6,292,602 | 13.5 | % | ||||||||||||||||||||||||||||||||||||
Total non interest-earning assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 4,071,643 | 5,025,959 | 6,277,291 | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Dollar-denominated | (166,711 | ) | 1,174,093 | 2,260,525 | ||||||||||||||||||||||||||||||||||||||||||||
Total | 3,904,932 | 6,200,052 | 8,537,816 | |||||||||||||||||||||||||||||||||||||||||||||
Total interest and non interest- earnings assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 26,621,604 | 2,546,831 | 32,366,956 | 3,764,230 | 39,584,096 | 5,376,704 | ||||||||||||||||||||||||||||||||||||||||||
U.S. Dollar-denominated | 5,815,683 | 448,237 | 10,827,967 | 1,025,866 | 15,537,418 | 915,898 | ||||||||||||||||||||||||||||||||||||||||||
Total Assets | Ps | 32,437,287 | Ps | 2,995,068 | Ps | 43,194,923 | Ps | 4,790,096 | Ps | 55,121,514 | Ps | 6,292,602 | ||||||||||||||||||||||||||||||||||||
(1) | Includes performing loans only. | |
(2) | Overnight funds interest earned includes commissions and therefore differs from the concept in the consolidated statement of operations. | |
(3) | For the years ended December 31, 2007 and 2008, the Bank includes Banagrícola’s results. |
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Average Balance Sheet and Interest Paid on Interest-Bearing Liabilities for the Fiscal Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2006 | 2007(2) | 2008(2) | ||||||||||||||||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | |||||||||||||||||||||||||||||||||||||||||||
Nominal | Real | Nominal | Real | Nominal | Real | |||||||||||||||||||||||||||||||||||||||||||
Average | Interest | Interest | Average | Interest | Interest | Average | Interest | Interest | ||||||||||||||||||||||||||||||||||||||||
Balance | Interest Paid | Rate | Rate | Balance | Interest Paid | Rate(1) | Rate(1) | Balance | Interest Paid | Rate(1) | Rate(1) | |||||||||||||||||||||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND SHARE-HOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Checking deposits | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | Ps | 294,062 | Ps | 6,568 | 2.2 | % | -2.2 | % | Ps | 348,131 | Ps | 7,626 | 2.2 | % | -3.3 | % | Ps | 468,000 | Ps | 16,012 | 3.4 | % | -3.9 | % | ||||||||||||||||||||||||
U.S. Dollar-denominated | 939,789 | 26,108 | 2.8 | % | 2.8 | % | 1,410,746 | 31,450 | 2.2 | % | 2.2 | % | 1,733,507 | 23,245 | 1.3 | % | 1.3 | % | ||||||||||||||||||||||||||||||
Total | 1,233,851 | 32,676 | 2.6 | % | 1,758,877 | 39,076 | 2.2 | % | 2,201,507 | 39,257 | 1.8 | % | ||||||||||||||||||||||||||||||||||||
Savings deposits | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 8,252,173 | 261,550 | 3.2 | % | -1.3 | % | 10,309,007 | 446,596 | 4.3 | % | -1.3 | % | 10,952,894 | 555,628 | 5.1 | % | -2.4 | % | ||||||||||||||||||||||||||||||
U.S. Dollar-denominated | 136,420 | 2,831 | 2.1 | % | 2.1 | % | 1,165,839 | 14,841 | 1.3 | % | 1.3 | % | 1,880,546 | 34,090 | 1.8 | % | 1.8 | % | ||||||||||||||||||||||||||||||
Total | 8,388,593 | 264,381 | 3.2 | % | 11,474,846 | 461,437 | 4.0 | % | 12,833,440 | 589,718 | 4.6 | % | ||||||||||||||||||||||||||||||||||||
Time deposits | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 5,275,213 | 376,919 | 7.1 | % | 2.6 | % | 6,882,302 | 560,996 | 8.2 | % | 2.3 | % | 10,276,935 | 1,015,373 | 9.9 | % | 2.1 | % | ||||||||||||||||||||||||||||||
U.S. Dollar-denominated | 1,796,282 | 82,594 | 4.6 | % | 4.6 | % | 4,071,678 | 255,692 | 6.3 | % | 6.3 | % | 5,989,037 | 241,369 | 4.0 | % | 4.0 | % | ||||||||||||||||||||||||||||||
Total | 7,071,495 | 459,513 | 6.5 | % | 10,953,980 | 816,688 | 7.5 | % | 16,265,972 | 1,256,742 | 7.7 | % | ||||||||||||||||||||||||||||||||||||
Overnight funds | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 1,086,896 | 80,413 | 7.4 | % | 2.8 | % | 1,046,906 | 104,172 | 10.0 | % | 4.0 | % | 1,301,213 | 123,638 | 9.5 | % | 1.7 | % | ||||||||||||||||||||||||||||||
U.S. Dollar-denominated | 397,212 | 20,463 | 5.2 | % | 5.2 | % | 401,515 | 26,955 | 6.7 | % | 6.7 | % | 1,013,888 | 42,491 | 4.2 | % | 4.2 | % | ||||||||||||||||||||||||||||||
Total | 1,484,108 | 100,876 | 6.8 | % | 1,448,421 | 131,127 | 9.1 | % | 2,315,101 | 166,129 | 7.2 | % | ||||||||||||||||||||||||||||||||||||
Borrowings from development and other domestic banks | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 2,218,433 | 174,108 | 7.8 | % | 3.2 | % | 2,599,267 | 254,627 | 9.8 | % | 3.9 | % | 3,036,553 | 332,747 | 11.0 | % | 3.1 | % | ||||||||||||||||||||||||||||||
U.S. Dollar-denominated | 181,326 | 6,399 | 3.5 | % | 3.5 | % | 291,124 | 13,085 | 4.5 | % | 4.5 | % | 600,817 | 12,153 | 2.0 | % | 2.0 | % | ||||||||||||||||||||||||||||||
Total | 2,399,759 | 180,507 | 7.5 | % | 2,890,391 | 267,712 | 9.3 | % | 3,637,370 | 344,900 | 9.5 | % | ||||||||||||||||||||||||||||||||||||
Interbank borrowings | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
U.S. Dollar-denominated | 1,574,870 | 94,872 | 6.0 | % | 6.0 | % | 1,480,150 | 116,615 | 7.9 | % | 7.9 | % | 1,578,252 | 74,792 | 4.74 | % | 4.7 | % | ||||||||||||||||||||||||||||||
Total | 1,574,870 | 94,872 | 6.0 | % | 6.0 | % | 1,480,150 | 116,615 | 7.9 | % | 1,578,252 | 74,792 | 4.7 | % | ||||||||||||||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 1,442,367 | 113,404 | 7.9 | % | 3.2 | % | 1,258,676 | 105,526 | 8.4 | % | 2.5 | % | 1,640,560 | 191,534 | 11.7 | % | 3.7 | % | ||||||||||||||||||||||||||||||
U.S. Dollar-denominated | — | — | 839,442 | 63,909 | 7.6 | % | 7.6 | % | 1,493,208 | 90,270 | 6.0 | % | 6.0 | % | ||||||||||||||||||||||||||||||||||
Total | 1,442,367 | 113,404 | 7.9 | % | 7.9 | % | 2,098,118 | 169,435 | 8.1 | % | 3,133,768 | 281,804 | 9.0 | % |
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Average Balance Sheet and Interest Paid on Interest-Bearing Liabilities for the Fiscal Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2006 | 2007(2) | 2008(2) | ||||||||||||||||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | |||||||||||||||||||||||||||||||||||||||||||
Nominal | Real | Nominal | Real | Nominal | Real | |||||||||||||||||||||||||||||||||||||||||||
Average | Interest | Interest | Average | Interest | Interest | Average | Interest | Interest | ||||||||||||||||||||||||||||||||||||||||
Balance | Interest Paid | Rate | Rate | Balance | Interest Paid | Rate(1) | Rate(1) | Balance | Interest Paid | Rate(1) | Rate(1) | |||||||||||||||||||||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 18,569,144 | 1,012,962 | 5.5 | % | 0.9 | % | 22,444,289 | 1,479,543 | 6.6 | % | 0.9 | % | 27,676,155 | 2,234,932 | 8.1 | % | 0.4 | % | ||||||||||||||||||||||||||||||
U.S. Dollar-denominated | 5,025,899 | 233,267 | 4.6 | % | 4.6 | % | 9,660,494 | 522,547 | 5.4 | % | 5.4 | % | 14,289,255 | 518,410 | 3.6 | % | 3.6 | % | ||||||||||||||||||||||||||||||
Total | 23,595,043 | 1,246,229 | 5.3 | % | 32,104,783 | 2,002,090 | 6.2 | % | 41,965,410 | 2,753,342 | 6.6 | % | ||||||||||||||||||||||||||||||||||||
Total interest and non-interest bearing liabilities and shareholders’ equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 26,493,304 | 1,012,962 | 32,325,570 | 1,479,543 | 39,524,490 | 2,234,932 | ||||||||||||||||||||||||||||||||||||||||||
U.S. Dollar-denominated | 5,943,983 | 233,267 | 10,869,353 | 522,547 | 15,597,024 | 518,410 | ||||||||||||||||||||||||||||||||||||||||||
Total liabilities and Shareholders equity | Ps | 32,437,287 | Ps | 1,246,229 | Ps | 43,194,923 | Ps | 2,002,090 | Ps | 55,121,514 | Ps | 2,753,342 | ||||||||||||||||||||||||||||||||||||
(1) | See “Item 4 Information on the company — E. Selected Statistical Information — E.1 Distribution of Assets, Liablilities and Stockholders’ Equity; Interest Rates and Interest Differential”. | |
(2) | For the years ended December 31, 2007 and 2008, the Bank includes Banagrícola’s results. |
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2006-2007 | 2007-2008(1) | |||||||||||||||||||||||
Increase (Decrease) | Increase (Decrease) | |||||||||||||||||||||||
Due To Changes in: | Due To Changes in: | |||||||||||||||||||||||
Net | Net | |||||||||||||||||||||||
Volume | Rate | Change | Volume | Rate | Change | |||||||||||||||||||
(Ps million) | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Overnight funds | ||||||||||||||||||||||||
Peso-denominated | Ps | 5,752 | Ps | (2,196 | ) | Ps | 3,556 | Ps | 33,167 | Ps | 4,780 | Ps | 37,947 | |||||||||||
U.S. Dollar-denominated | 59,411 | 6,846 | 66,257 | (10,735 | ) | (37,157 | ) | (47,892 | ) | |||||||||||||||
Total | 65,163 | 4,650 | 69,813 | 22,432 | (32,377 | ) | (9,945 | ) | ||||||||||||||||
Investment securities | ||||||||||||||||||||||||
Peso-denominated | (106,939 | ) | 264,632 | 157,693 | 57,265 | 47,129 | 104,394 | |||||||||||||||||
U.S. Dollar-denominated | (19,246 | ) | 5,000 | (14,246 | ) | 2,484 | (91,933 | ) | (89,449 | ) | ||||||||||||||
Total | (126,185 | ) | 269,632 | 143,447 | 59,749 | (44,804 | ) | 14,945 | ||||||||||||||||
Loans | ||||||||||||||||||||||||
Peso-denominated | 889,516 | 166,634 | 1,056,150 | 871,128 | 599,005 | 1,470,133 | ||||||||||||||||||
U.S. Dollar-denominated | 380,428 | 145,190 | 525,618 | 283,344 | (255,971 | ) | 27,373 | |||||||||||||||||
Total | 1,269,944 | 311,824 | 1,581,768 | 1,154,472 | 343,034 | 1,497,506 | ||||||||||||||||||
Total interest-earning assets | ||||||||||||||||||||||||
Peso-denominated | 788,329 | 429,070 | 1,217,399 | 961,560 | 650,914 | 1,612,474 | ||||||||||||||||||
U.S. Dollar-denominated | 420,593 | 157,036 | 577,629 | 275,093 | (385,061 | ) | (109,968 | ) | ||||||||||||||||
Total | 1,208,922 | 586,106 | 1,795,028 | 1,236,653 | 265,853 | 1,502,506 | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Checking deposits | ||||||||||||||||||||||||
Peso-denominated | 1,184 | (126 | ) | 1,058 | 4,101 | 4,285 | 8,386 | |||||||||||||||||
U.S. Dollar-denominated | 10,499 | (5,157 | ) | 5,342 | 4,328 | (12,533 | ) | (8,205 | ) | |||||||||||||||
Total | 11,683 | (5,283 | ) | 6,400 | 8,429 | (8,248 | ) | 181 | ||||||||||||||||
Savings deposits | ||||||||||||||||||||||||
Peso-denominated | 89,104 | 95,942 | 185,046 | 32,664 | 76,368 | 109,032 | ||||||||||||||||||
U.S. Dollar-denominated | 13,104 | (1,094 | ) | 12,010 | 12,956 | 6,293 | 19,249 | |||||||||||||||||
Total | 102,208 | 94,848 | 197,056 | 45,620 | 82,661 | 128,281 | ||||||||||||||||||
Time deposits | ||||||||||||||||||||||||
Peso-denominated | 130,998 | 53,079 | 184,077 | 335,394 | 118,983 | 454,377 | ||||||||||||||||||
U.S. Dollar-denominated | 142,890 | 30,208 | 173,098 | 77,273 | (91,596 | ) | (14,323 | ) | ||||||||||||||||
Total | 273,888 | 83,287 | 357,175 | 412,667 | 27,387 | 440,054 | ||||||||||||||||||
Overnight funds | ||||||||||||||||||||||||
Peso-denominated | (3,979 | ) | 27,738 | 23,759 | 24,164 | (4,698 | ) | 19,466 | ||||||||||||||||
U.S. Dollar-denominated | 289 | 6,203 | 6,492 | 25,664 | (10,128 | ) | 15,536 | |||||||||||||||||
Total | (3,690 | ) | 33,941 | 30,251 | 49,828 | (14,826 | ) | 35,002 | ||||||||||||||||
Borrowings from development and other domestic banks | ||||||||||||||||||||||||
Peso-denominated | 37,307 | 43,212 | 80,519 | 47,918 | 30,202 | 78,120 | ||||||||||||||||||
U.S. Dollar-denominated | ||||||||||||||||||||||||
Dollar-denominated | 4,935 | 1,751 | 6,686 | 6,264 | (7,196 | ) | (932 | ) | ||||||||||||||||
Total | 42,242 | 44,963 | 87,205 | 54,182 | 23,006 | 77,188 |
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2006-2007 | 2007-2008(1) | |||||||||||||||||||||||
Increase (Decrease) | Increase (Decrease) | |||||||||||||||||||||||
Due To Changes in: | Due To Changes in: | |||||||||||||||||||||||
Net | Net | |||||||||||||||||||||||
Volume | Rate | Change | Volume | Rate | Change | |||||||||||||||||||
(Ps million) | ||||||||||||||||||||||||
Interbank borrowings | ||||||||||||||||||||||||
Peso-denominated | — | — | — | — | — | — | ||||||||||||||||||
U.S. Dollar-denominated | (7,463 | ) | 29,206 | 21,743 | 4,649 | (46,472 | ) | (41,823 | ) | |||||||||||||||
Total | (7,463 | ) | 29,206 | 21,743 | 4,649 | (46,472 | ) | (41,823 | ) | |||||||||||||||
Long-term debt | ||||||||||||||||||||||||
Peso-denominated | (15,400 | ) | 7,522 | (7,878 | ) | 44,585 | 41,423 | 86,008 | ||||||||||||||||
U.S. Dollar-denominated | 63,909 | — | 63,909 | 39,523 | (13,162 | ) | 26,361 | |||||||||||||||||
Total | 48,509 | 7,522 | 56,031 | 84,108 | 28,261 | 112,369 | ||||||||||||||||||
Total interest-bearing liabilities | ||||||||||||||||||||||||
Peso-denominated | 239,214 | 227,367 | 466,581 | 488,826 | 266,563 | 755,389 | ||||||||||||||||||
U.S. Dollar-denominated | 228,163 | 61,117 | 289,280 | 170,657 | (174,794 | ) | (4,137 | ) | ||||||||||||||||
Total | 467,377 | 288,484 | 755,861 | 659,483 | 91,769 | 751,252 | ||||||||||||||||||
(1) | For the years ended December 31, 2007 and 2008, the Bank includes Banagrícola’s results. |
Interest-Earning Assets-Yield For the Fiscal | ||||||||||||
Year Ended December 31, | ||||||||||||
2006 | 2007(4) | 2008(4) | ||||||||||
(in millions of pesos, except percentages) | ||||||||||||
Total average interest-earning assets | ||||||||||||
Peso-denominated | Ps | 22,549,961 | Ps | 27,340,997 | Ps | 33,306,805 | ||||||
U.S. Dollar-denominated | 5,982,394 | 9,653,874 | 13,276,893 | |||||||||
Total | Ps | 28,532,355 | Ps | 36,994,871 | Ps | 46,583,698 | ||||||
Net interest earned(1) | ||||||||||||
Peso-denominated | Ps | 1,533,869 | Ps | 2,284,687 | Ps | 3,141,772 | ||||||
U.S. Dollar-denominated | 214,970 | 503,319 | 397,488 | |||||||||
Total | Ps | 1,748,839 | Ps | 2,788,006 | Ps | 3,539,260 | ||||||
Average yield on interest-earning assets | ||||||||||||
Peso-denominated | 11.3 | % | 13.8 | % | 16.1 | % | ||||||
U.S. Dollar-denominated | 7.5 | % | 10.6 | % | 6.9 | % | ||||||
Total | 10.5 | % | 12.9 | % | 13.5 | % | ||||||
Net interest margin(2) | ||||||||||||
Peso-denominated | 6.8 | % | 8.4 | % | 9.4 | % | ||||||
U.S. Dollar-denominated | 3.6 | % | 5.2 | % | 3.0 | % | ||||||
Total | 6.1 | % | 7.6 | % | 7.7 | % | ||||||
Interest spread(3) | ||||||||||||
Peso-denominated | 5.8 | % | 7.2 | % | 8.1 | % | ||||||
U.S. Dollar-denominated | 2.9 | % | 5.2 | % | 3.3 | % | ||||||
Total | 5.2 | % | 6.7 | % | 6.9 | % |
(1) | Net interest earned is interest income less interest paid and includes interest earned on investments. | |
(2) | Net interest margin is net interest income divided by total average interest-earning assets. | |
(3) | Interest spread is the difference between the average yield on interest-earning assets and the average rate paid on interest-bearing liabilities. | |
(4) | For the years ended December 31, 2007 and 2008, the Bank includes Banagrícola’s results. |
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Long-Term Classification | Maximum Face Value (%) | |
BB+, BB, BB- | Ninety (90) | |
B+, B, B- | Seventy (70) | |
CCC | Fifty (50) | |
DD, EE | Zero (0) |
Short-Term Classification | Maximum Face Value (%) | |
3 | Ninety (90) | |
4 | Fifty (50) | |
5 and 6 | Zero (0) |
As of December 31, | ||||||||||||
2006(1)(2) | 2007(1)(2) | 2008(1)(2) | ||||||||||
(in millions of pesos) | ||||||||||||
U.S. Dollar-denominated | ||||||||||||
Securities issued or secured by the Colombian Government | Ps | 840,508 | Ps | 208,275 | Ps | 58,942 | ||||||
Securities issued or secured by the El Salvador Central Bank | — | 586,211 | 670,266 | |||||||||
Securities issued or secured by government entities(3) | — | 170,093 | 144,518 | |||||||||
Securities issued or secured by other financial entities | 383,988 | 152,968 | 69,125 | |||||||||
Securities issued by foreign governments | 66,530 | 450,484 | 687,557 | |||||||||
Others | 58,368 | 10,720 | 15,398 | |||||||||
Subtotal | 1,349,394 | 1,578,751 | 1,645,806 | |||||||||
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As of December 31, | ||||||||||||
2006(1)(2) | 2007(1)(2) | 2008(1)(2) | ||||||||||
(in millions of pesos) | ||||||||||||
Peso-denominated | ||||||||||||
Securities issued or secured by the Colombian Government | 2,016,413 | 2,013,143 | 2,633,806 | |||||||||
Securities issued or secured by the Central Bank | 267 | 153 | 2 | |||||||||
Securities issued or secured by government entities | 565,575 | 445,912 | 609,129 | |||||||||
Securities issued or secured by financial entities | 1,385,698 | 1,414,412 | 1,849,069 | |||||||||
Others | 198,688 | 121,850 | 81,857 | |||||||||
Subtotal | 4,166,641 | 3,995,470 | 5,173,863 | |||||||||
Total | Ps | 5,516,035 | Ps | 5,574,221 | Ps | 6,819,669 | ||||||
(1) | Includes debt securities only. Net investments in equity securities were Ps 161,726 million, Ps 200,030 million and Ps 458,607 million for 2006, 2007 and 2008, respectively. | |
(2) | These amounts are net of allowances for decline in value which were Ps 14,525 million for 2006, Ps 21,830 million for 2007, Ps 20,927 million for 2008, respectively. | |
(3) | For the years 2007 and 2008, this amount includes investments in fiduciary certificates of participation. These certificates were issued for the Environmental Trust for the conservation of the Coffee Forest (Fideicomiso Ambiental para la Conservación del Bosque Cafetero “FICAFE”). This trust was formed with the transfer of the coffee sector’s loan portfolio by a number of banks in El Salvador, including like Banco Agrícola. The purpose of this transaction was to carry out the restructuration of those loans, promoted by the government of El Salvador. |
Investment Amount - Book | Investment Amount - Book | |||||||||
As of December 31, | Issuer | Value - (in million of pesos) | Value - (U.S. dollars) | |||||||
2006 | Republic of Brazil | Ps | 58,717 | US$ | 26,227,198 | |||||
U.S. Treasury | Ps | 7,812 | US$ | 3,489,830 | ||||||
2007 | Republic of El Salvador | Ps | 216,389 | US$ | 107,402,043 | |||||
U.S. Treasury | Ps | 142,059 | US$ | 70,509,161 | ||||||
Republic of Brazil | Ps | 50,480 | US$ | 25,055,174 | ||||||
Republic of Sweden | Ps | 9,816 | US$ | 4,871,877 | ||||||
Republic of Germany | Ps | 9,205 | US$ | 4,569,001 | ||||||
Republic of Ireland | Ps | 7,092 | US$ | 3,519,874 | ||||||
Republic of Italy | Ps | 6,170 | US$ | 3,062,423 | ||||||
Republic of Austria | Ps | 2,094 | US$ | 1,039,193 | ||||||
Spain | Ps | 2,083 | US$ | 1,033,955 | ||||||
Republic of Canada | Ps | 2,052 | US$ | 1,018,588 | ||||||
Republic of Finland | Ps | 2,045 | US$ | 1,014,783 | ||||||
Republic of Panama | Ps | 999 | US$ | 495,625 | ||||||
2008 | Republic of El Salvador | Ps | 230,749 | US$ | 102,847,983 | |||||
U.S. Treasury | Ps | 405,050 | US$ | 180,536,473 | ||||||
Republic of Brazil | Ps | 51,981 | US$ | 23,168,684 |
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As of December 31, 2008 | ||||||||||||||||||||||||||||||||||||||||
Maturing in less than 1 | Maturing between 1 and | Maturing between 5 and | Maturing more than 10 | |||||||||||||||||||||||||||||||||||||
year | 5 years | 10 years | years | Total | ||||||||||||||||||||||||||||||||||||
Balance(1) | Yield %(2) | Balance(1) | Yield %(2) | Balance(1) | Yield %(2) | Balance(1) | Yield %(2) | Balance(1) | Yield %(2) | |||||||||||||||||||||||||||||||
(in millions of pesos, except yields) | ||||||||||||||||||||||||||||||||||||||||
U.S. dollar-denominated: | ||||||||||||||||||||||||||||||||||||||||
Securities issued or secured by Colombian government | — | — | Ps | 51,503 | 5.34 | % | Ps | 7,417 | 5.90 | % | Ps | 22 | 6.32 | % | Ps | 58,942 | 5.41 | % | ||||||||||||||||||||||
Securities issued or secured by El Salvador Central Bank | 639,269 | 0.00 | % | 30,997 | 2.94 | % | — | — | — | — | 670,266 | 0.14 | % | |||||||||||||||||||||||||||
Securities issued or secured by government entities | 2,482 | 5.32 | % | 35,749 | 6 | % | 40,584 | 6.49 | % | 65,703 | 5.20 | % | 144,518 | 5.70 | % | |||||||||||||||||||||||||
Securities issued by other financial entities | 45,047 | 5.48 | % | 24,078 | 5.80 | % | — | — | — | — | 69,125 | 5.59 | % | |||||||||||||||||||||||||||
Securities issued by foreign governments | 532,066 | 1.41 | % | 70,595 | 5.67 | % | 2,314 | 5.87 | % | 82,582 | 10.15 | % | 687,557 | 2.91 | % | |||||||||||||||||||||||||
Others | 14,858 | 3.38 | % | 540 | 5.76 | % | — | — | — | — | 15,398 | 3.47 | % | |||||||||||||||||||||||||||
Subtotal | 1,233,722 | 0.86 | % | 213,462 | 5.22 | % | 50,315 | 6.37 | % | 148,307 | 7.95 | % | 1,645,806 | 2.23 | % | |||||||||||||||||||||||||
Peso-denominated | ||||||||||||||||||||||||||||||||||||||||
Securities issued or secured by Colombian government | 711,301 | 9.47 | % | 1,475,623 | 6.49 | % | 377,114 | 3.53 | % | 69,768 | 7.42 | % | 2,633,806 | 6.89 | % | |||||||||||||||||||||||||
Securities issued or secured by the Central Bank | 2 | 26.39 | % | — | — | — | — | — | — | 2 | 26.39 | % | ||||||||||||||||||||||||||||
Securities issued or secured by government entities | 560,594 | 6.41 | % | 32,958 | 8.30 | % | 1,875 | 14.69 | % | 13,702 | 11.34 | % | 609,129 | 6.65 | % | |||||||||||||||||||||||||
Securities issued by other financial entities | 252,352 | 11.65 | % | 204,571 | 12.24 | % | 881,208 | 8.19 | % | 510,938 | 9.66 | % | 1,849,069 | 9.52 | % | |||||||||||||||||||||||||
Others | 9,537 | 10.56 | % | 50,094 | 11.67 | % | 22,175 | 12.13 | % | 51 | 4.98 | % | 81,857 | 11.66 | % | |||||||||||||||||||||||||
Subtotal | 1,533,786 | 8.72 | % | 1,763,246 | 7.34 | % | 1,282,372 | 6.90 | % | 594,459 | 9.44 | % | 5,173,863 | 7.88 | % | |||||||||||||||||||||||||
Total | Ps | 2,767,508 | Ps | 1,976,708 | Ps | 1,332,687 | Ps | 742,766 | Ps | 6,819,669 | ||||||||||||||||||||||||||||||
(1) | Amounts are net of allowances for decline in value which amounted to Ps 20,927 million in 2008. | |
(2) | Yield was calculated using the internal return rate (IRR) as of December 31, 2008. |
Issuer | Amortized Cost | Fair value | ||||||||
(Ps million) | ||||||||||
Securities issued or secured by Colombian government | Ministry of Finance | Ps | 2,692,748 | Ps | 2,586,958 | |||||
Securities issued by other financial entities | Titularizadora Colombiana | 1,373,768 | 1,381,516 | |||||||
Securities issued by El Salvador Central Bank | Dirección General de Tesorer—a | 670,266 | 669,629 | |||||||
Total | Ps | 4,736,782 | Ps | 4,638,103 | ||||||
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As of December 31, | ||||||||||||||||||||
2004 | 2005 | 2006 | 2007(2) | 2008 | ||||||||||||||||
(Ps million) | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Corporate | ||||||||||||||||||||
Trade financing | Ps | 253,632 | Ps | 783,894 | Ps | 777,417 | Ps | 845,810 | Ps | 640,033 | ||||||||||
Loans funded by development banks | 770,331 | 948,659 | 321,263 | 842,957 | 970,456 | |||||||||||||||
Working capital loans | 4,298,354 | 7,702,420 | 11,534,148 | 13,320,319 | 15,524,940 | |||||||||||||||
Credit cards | 24,621 | 42,293 | 50,803 | 36,613 | 33,039 | |||||||||||||||
Overdrafts | 67,018 | 62,041 | 74,218 | 50,536 | 55,796 | |||||||||||||||
Total corporate | 5,413,956 | 9,539,307 | 12,757,849 | 15,096,235 | 17,224,264 | |||||||||||||||
Retail(1) | ||||||||||||||||||||
Credit cards | 392,900 | 582,533 | 796,175 | 1,855,999 | 2,317,178 | |||||||||||||||
Personal loans | 1,111,250 | 1,556,429 | 2,281,177 | 2,305,390 | 2,369,852 | |||||||||||||||
Vehicle loans | 381,723 | 629,326 | 963,072 | 1,305,685 | 1,314,685 | |||||||||||||||
Overdrafts | 89,867 | 101,957 | 119,882 | 195,063 | 208,123 | |||||||||||||||
Loans funded by development banks | 359,494 | 403,414 | 386,283 | 713,007 | 887,978 | |||||||||||||||
Trade financing | 54,189 | 76,643 | 70,406 | 93,037 | 98,344 | |||||||||||||||
Working capital loans | 1,295,643 | 1,612,650 | 2,331,999 | 3,715,945 | 4,125,358 | |||||||||||||||
Total retail | 3,685,066 | 4,962,952 | 6,948,994 | 10,184,126 | 11,321,518 | |||||||||||||||
Financial Leases | 880,110 | 2,660,556 | 3,553,286 | 4,698,702 | 5,406,712 | |||||||||||||||
Mortgage | 56,107 | 1,463,437 | 1,385,445 | 1,930,742 | 2,313,864 | |||||||||||||||
Total loans | 10,035,239 | 18,626,252 | 24,645,574 | 31,909,805 | 36,266,358 | |||||||||||||||
Allowance for loan losses | (434,378 | ) | (705,882 | ) | (834,183 | ) | (1,251,561 | ) | (1,810,577 | ) | ||||||||||
Total loans, net | Ps | 9,600,861 | Ps | 17,920,370 | Ps | 23,811,391 | Ps | 30,658,244 | Ps | 34,455,781 | ||||||||||
Foreign | ||||||||||||||||||||
Corporate | ||||||||||||||||||||
Trade financing | Ps | 313,736 | Ps | 1,128,931 | ||||||||||||||||
Loans funded by development banks | 39,758 | 52,308 | ||||||||||||||||||
Working capital loans | 2,779,180 | 3,807,352 | ||||||||||||||||||
Credit cards | 6,546 | 9,327 | ||||||||||||||||||
Overdrafts | 8,610 | 7,712 | ||||||||||||||||||
Total corporate | 3,147,830 | 5,005,630 | ||||||||||||||||||
Retail(1) | ||||||||||||||||||||
Credit cards | 164,612 | 201,813 | ||||||||||||||||||
Personal loans | 1,473,168 | 1,917,663 | ||||||||||||||||||
Vehicle loans | 6,711 | 5,724 | ||||||||||||||||||
Overdrafts | 22,943 | 21,089 | ||||||||||||||||||
Loans funded by development banks | 6,204 | 8,304 | ||||||||||||||||||
Trade financing | 4,941 | 25,482 | ||||||||||||||||||
Working capital loans | 13,399 | 13,015 | ||||||||||||||||||
Total retail | 1,691,978 | 2,193,090 | ||||||||||||||||||
Financial Leases | 125 | 100,030 | ||||||||||||||||||
Mortgage | 952,886 | 1,077,462 | ||||||||||||||||||
Total loans | 5,792,819 | 8,376,212 | ||||||||||||||||||
Allowance for loan losses | (205,590 | ) | (323,783 | ) | ||||||||||||||||
Total loans, net | 5,587,229 | 8,052,429 | ||||||||||||||||||
Total Foreign and Domestic Loans | Ps | 36,245,473 | Ps | 42,508,210 | ||||||||||||||||
(1) | Includes loans to high-income individuals and small companies. | |
(2) | In 2007 the foreign loan category became material to the Bank due to the acquisition of Banagrícola,; because of this, there is not information for previous years. |
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• | Corporate loans, which include loans to medium and large corporations; |
• | Retail loans, which include loans to individuals, such as personal lines of credit, vehicle loans and credit card loans, microcredit loans; |
• | Financial leases; and |
• | Mortgage loans, for the acquisition and building of new or used housing. |
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Due in one year | Due from one to | Due after five | ||||||||||||||
or less | five years | years | Total | |||||||||||||
(Ps million) | ||||||||||||||||
Domestic loans and financial leases: | ||||||||||||||||
Corporate | ||||||||||||||||
Trade financing | Ps | 520,971 | Ps | 110,118 | Ps | 8,944 | Ps | 640,033 | ||||||||
Loans funded by development banks | 306,064 | 524,154 | 140,238 | 970,456 | ||||||||||||
Working capital loans | 6,203,168 | 7,339,345 | 1,982,427 | 15,524,940 | ||||||||||||
Credit cards | 4,877 | 28,160 | 2 | 33,039 | ||||||||||||
Overdrafts | 55,796 | — | — | 55,796 | ||||||||||||
Total corporate | Ps | 7,090,876 | Ps | 8,001,777 | Ps | 2,131,611 | Ps | 17,224,264 | ||||||||
Retail | ||||||||||||||||
Credit cards | Ps | 268,140 | Ps | 2,047,302 | Ps | 1,736 | Ps | 2,317,178 | ||||||||
Personal loans | 268,181 | 2,084,265 | 17,406 | 2,369,852 | ||||||||||||
Vehicle loans | 59,246 | 859,158 | 396,281 | 1,314,685 | ||||||||||||
Overdrafts | 208,113 | 10 | — | 208,123 | ||||||||||||
Loans funded by development banks | 106,780 | 638,161 | 143,037 | 887,978 | ||||||||||||
Trade financing | 90,978 | 7,366 | — | 98,344 | ||||||||||||
Working capital loans | 1,534,492 | 2,270,932 | 319,934 | 4,125,358 | ||||||||||||
Total retail | 2,535,930 | 7,907,194 | 878,394 | 11,321,518 | ||||||||||||
Financial leases | 430,331 | 3,595,922 | 1,380,459 | 5,406,712 | ||||||||||||
Mortgage | 37,843 | 163,267 | 2,112,754 | 2,313,864 | ||||||||||||
Total domestic loans and financial leases | Ps | 10,094,980 | Ps | 19,668,160 | Ps | 6,503,218 | Ps | 36,266,358 | ||||||||
Foreign loans and financial leases: | ||||||||||||||||
Corporate | ||||||||||||||||
Trade financing | Ps | 427,698 | Ps | 459,797 | Ps | 241,436 | Ps | 1,128,931 | ||||||||
Loans funded by development banks | 38,357 | 4,158 | 9,793 | 52,308 | ||||||||||||
Working capital loans | 1,643,166 | 1,541,115 | 623,071 | 3,807,352 | ||||||||||||
Credit cards | — | 9,327 | — | 9,327 | ||||||||||||
Overdrafts | 7,712 | — | — | 7,712 | ||||||||||||
Total corporate | Ps | 2,116,933 | Ps | 2,014,397 | Ps | 874,300 | Ps | 5,005,630 | ||||||||
Retail | ||||||||||||||||
Credit cards | Ps | 424 | Ps | 201,389 | — | Ps | 201,813 | |||||||||
Personal loans | 51,826 | 501,663 | 1,364,174 | 1,917,663 | ||||||||||||
Vehicle loans | 319 | 4,954 | 451 | 5,724 | ||||||||||||
Overdrafts | 21,089 | — | — | 21,089 | ||||||||||||
Loans funded by development banks | 51 | 1,593 | 6,660 | 8,304 | ||||||||||||
Trade financing | 3,076 | 3,763 | 18,643 | 25,482 | ||||||||||||
Working capital loans | 1,931 | 7,579 | 3,505 | 13,015 | ||||||||||||
Total retail | Ps | 78,716 | Ps | 720,941 | Ps | 1,393,433 | Ps | 2,193,090 | ||||||||
Financial leases | 1,496 | 98,475 | 59 | 100,030 | ||||||||||||
Mortgage | 4,855 | 39,035 | 1,033,572 | 1,077,462 | ||||||||||||
Foreign loans and financial leases | 2,202,000 | 2,872,848 | 3,301,364 | 8,376,212 | ||||||||||||
Total loans | Ps | 12,296,980 | Ps | 22,541,008 | Ps | 9,804,582 | Ps | 44,642,570 | ||||||||
As of December 31, | ||||
2008 | ||||
(Ps million) | ||||
Loans with term of 1 year or more: | ||||
Variable Rate | ||||
Domestic-denominated | Ps | 21,276,345 | ||
Foreign-denominated | 5,644,333 | |||
Total | 26,920,678 | |||
Fixed Rate | ||||
Domestic-denominated | 4,895,033 | |||
Foreign-denominated | 529,879 | |||
Total | 5,424,912 | |||
Loans with terms of less than 1 year: | ||||
Domestic-denominated | 10,094,980 | |||
Foreign-denominated | 2,202,000 | |||
Total | 12,296,980 | |||
Total loans | Ps | 44,642,570 | ||
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As of December 31, | ||||||||||||||||||||||||||||||||||||||||
2004 | % | 2005 | % | 2006 | % | 2007 | % | 2008 | % | |||||||||||||||||||||||||||||||
Agricultural | Ps | 480,414 | 4.8 | % | Ps | 844,651 | 4.5 | % | Ps | 996,091 | 4.0 | % | Ps | 1,695,451 | 4.5 | % | Ps | 1,940,328 | 4.3 | % | ||||||||||||||||||||
Mining products and oil | 140,137 | 1.4 | % | 273,580 | 1.5 | % | 456,770 | 1.9 | % | 711,836 | 1.9 | % | 710,992 | 1.6 | % | |||||||||||||||||||||||||
Food, beverage and tobacco | 666,602 | 6.6 | % | 1,371,696 | 7.4 | % | 1,665,850 | 6.8 | % | 2,000,330 | 5.3 | % | 2,496,656 | 5.6 | % | |||||||||||||||||||||||||
Chemical production | 386,434 | 3.9 | % | 572,000 | 3.0 | % | 805,900 | 3.3 | % | 1,213,368 | 3.2 | % | 1,886,283 | 4.2 | % | |||||||||||||||||||||||||
Other industrial and manufacturing products | 1,762,447 | 17.6 | % | 2,982,246 | 16.0 | % | 3,867,432 | 15.7 | % | 5,558,371 | 14.7 | % | 6,558,650 | 14.7 | % | |||||||||||||||||||||||||
Government | 1,027,009 | 10.2 | % | 1,226,597 | 6.6 | % | 602,585 | 2.4 | % | 772,539 | 2.1 | % | 659,800 | 1.5 | % | |||||||||||||||||||||||||
Construction | 575,679 | 5.7 | % | 2,980,173 | 16.0 | % | 1,534,816 | 6.2 | % | 2,680,281 | 7.1 | % | 3,864,585 | 8.7 | % | |||||||||||||||||||||||||
Trade and tourism | 1,760,120 | 17.5 | % | 2,693,730 | 14.5 | % | 2,791,340 | 11.3 | % | 4,713,417 | 12.5 | % | 6,967,723 | 15.6 | % | |||||||||||||||||||||||||
Transportation and communications | 720,031 | 7.2 | % | 1,496,371 | 8.0 | % | 1,924,129 | 7.8 | % | 2,340,138 | 6.2 | % | 2,543,964 | 5.7 | % | |||||||||||||||||||||||||
Public services | 469,658 | 4.7 | % | 941,975 | 5.0 | % | 1,183,361 | 4.8 | % | 1,514,595 | 4.0 | % | 1,112,110 | 2.5 | % | |||||||||||||||||||||||||
Consumer services | 1,601,132 | 16.0 | % | 2,134,950 | 11.5 | % | 5,804,779 | 23.6 | % | 10,564,706 | 28.0 | % | 11,912,170 | 26.7 | % | |||||||||||||||||||||||||
Commercial services | 445,576 | 4.4 | % | 1,108,283 | 6.0 | % | 3,012,521 | 12.2 | % | 3,937,592 | 10.5 | % | 3,989,309 | 8.9 | % | |||||||||||||||||||||||||
Total loans | Ps | 10,035,239 | 100.0 | % | Ps | 18,626,252 | 100.0 | % | Ps | 24,645,574 | 100.0 | % | Ps | 37,702,624 | 100.0 | % | Ps | 44,642,570 | 100.0 | % | ||||||||||||||||||||
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Loan Portfolio by Type of Loan | ||||||||||||||||||||
As of December 31, | ||||||||||||||||||||
2004 | 2005 | 2006 | 2007 | 2008 | ||||||||||||||||
(Ps million) | ||||||||||||||||||||
Commercial Loans | Ps | 7,353,956 | Ps | 11,949,501 | Ps | 16,028,505 | Ps | 23,397,058 | Ps | 28,068,731 | ||||||||||
Consumer Loans | 1,655,066 | 2,437,727 | 3,587,260 | 6,593,211 | 7,532,649 | |||||||||||||||
Small Business Loans | 90,000 | 115,031 | 91,078 | 129,900 | 143,122 | |||||||||||||||
Financial Leases | 880,110 | 2,660,556 | 3,553,286 | 4,698,827 | 5,506,742 | |||||||||||||||
Mortgage | 56,107 | 1,463,437 | 1,385,445 | 2,883,628 | 3,391,326 | |||||||||||||||
Total Loans and Financial Leases | 10,035,239 | 18,626,252 | 24,645,574 | 37,702,624 | 44,642,570 | |||||||||||||||
Allowance for Loans and Financial Lease Losses | 434,378 | 705,882 | 834,183 | 1,457,151 | 2,134,360 | |||||||||||||||
Total Loans and Financial Leases, Net | Ps | 9,600,861 | Ps | 17,920,370 | Ps | 23,811,391 | Ps | 36,245,473 | Ps | 42,508,210 | ||||||||||
As of December 31, | ||||||||||||||||||||||||||||||||||||||||
2004 | % | 2005 | % | 2006 | % | 2007 | % | 2008 | % | |||||||||||||||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||||||||||||||||||
“A” Normal | Ps | 9,327,398 | 93.0 | % | Ps | 17,359,081 | 93.2 | % | Ps | 23,310,545 | 94.6 | % | Ps | 35,397,503 | 93.9 | % | Ps | 40,650,096 | 91.0 | % | ||||||||||||||||||||
“B” Subnormal | 320,959 | 3.2 | % | 638,131 | 3.4 | % | 708,774 | 2.9 | % | 1,135,022 | 3.0 | % | 2,216,832 | 5.0 | % | |||||||||||||||||||||||||
“C” Deficient | 93,175 | 0.9 | % | 202,934 | 1.1 | % | 209,386 | 0.8 | % | 300,085 | 0.8 | % | 576,557 | 1.3 | % | |||||||||||||||||||||||||
“D” Doubtful Recovery | 204,344 | 2.0 | % | 252,635 | 1.4 | % | 242,763 | 1.0 | % | 604,034 | 1.6 | % | 871,892 | 2.0 | % | |||||||||||||||||||||||||
“E” Unrecoverable | 89,363 | 0.9 | % | 173,471 | 0.9 | % | 174,106 | 0.7 | % | 265,980 | 0.7 | % | 327,193 | 0.7 | % | |||||||||||||||||||||||||
Total loans and financial leases | Ps | 10,035,239 | 100.0 | % | Ps | 18,626,252 | 100.0 | % | Ps | 24,645,574 | 100.0 | % | Ps | 37,702,624 | 100.0 | % | Ps | 44,642,570 | 100.0 | % | ||||||||||||||||||||
Loans classified as “C”, “D” and “E” as a percentage of total loans | 3.9 | % | 3.4 | % | 2.5 | % | 3.1 | % | 4.0 | % |
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Table of Contents
Type of loan and financial lease | Arrears in excess of: | |
Mortgage | 2 months | |
Consumer | 2 months | |
Small business loans | 1 month | |
Commercial | 3 months |
As of December 31, | ||||||||||||||||||||||||||||||||||||||||
2004 | % | 2005(3) | % | 2006 | % | 2007 | % | 2008 | % | |||||||||||||||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||||||||||||||||||
Performing past due loans:(1) | ||||||||||||||||||||||||||||||||||||||||
Consumer loans past due from 31 to 60 days | Ps | 21,987 | 38.7 | % | Ps | 34,630 | 19.7 | % | Ps | 62,201 | 26.4 | % | Ps | 131,824 | 30.1 | % | Ps | 150,762 | 22.4 | % | ||||||||||||||||||||
Small loans past due from 31 to 60 days(3) | 1,845 | 3.2 | % | — | 0.0 | % | — | 0.0 | % | — | 0.0 | % | — | 0.0 | % | |||||||||||||||||||||||||
Commercial loans past due from 31 to 90 days | 26,398 | 46.5 | % | 46,485 | 26.5 | % | 74,577 | 31.8 | % | 164,163 | 37.4 | % | 323,185 | 48.0 | % | |||||||||||||||||||||||||
Mortgage loans past due from 31 to 60/90/120 days(3) | — | 0.0 | % | 84,156 | 47.9 | % | 62,919 | 26.8 | % | 81,523 | 18.6 | % | 100,785 | 15.0 | % | |||||||||||||||||||||||||
Financial leases past due from 31 to 60/90 days(2) | 6,593 | 11.6 | % | 10,301 | 5.9 | % | 35,150 | 15.0 | % | 61,055 | 13.9 | % | 98,644 | 14.6 | % | |||||||||||||||||||||||||
Total performing past due loans and Financial leases | 56,823 | 100.0 | % | 175,572 | 100.0 | % | 234,847 | 100.0 | % | 438,565 | 100.0 | % | 673,376 | 100.0 | % | |||||||||||||||||||||||||
Non-performing past due loans: | ||||||||||||||||||||||||||||||||||||||||
Consumer loans past due more than 61 days | 40,882 | 46.2 | % | 66,121 | 24.0 | % | 114,101 | 34.1 | % | 234,659 | 35.2 | % | 296,153 | 31.2 | % | |||||||||||||||||||||||||
Small loans past due more than 31 days(3) | 3,781 | 4.3 | % | 5,979 | 2.1 | % | 10,003 | 3.0 | % | 14,630 | 2.2 | % | 17,600 | 1.9 | % | |||||||||||||||||||||||||
Commercial loans past due more than 90 days(2) | 40,171 | 45.4 | % | 114,496 | 41.5 | % | 133,987 | 40.0 | % | 233,883 | 35.1 | % | 387,571 | 40.7 | % | |||||||||||||||||||||||||
Mortgage loans past due more than 60/90/120 days(3) | 37 | 0.0 | % | 77,394 | 28.1 | % | 65,187 | 19.5 | % | 124,251 | 18.6 | % | 184,597 | 19.4 | % | |||||||||||||||||||||||||
Financial leases past due from 31 to 60/90 days | 3,580 | 4.1 | % | 11,874 | 4.3 | % | 11,210 | 3.4 | % | 58,945 | 8.9 | % | 64,708 | 6.8 | % | |||||||||||||||||||||||||
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As of December 31, | ||||||||||||||||||||||||||||||||||||||||
2004 | % | 2005(3) | % | 2006 | % | 2007 | % | 2008 | % | |||||||||||||||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||||||||||||||||||
Total non-performing past due loans and Financial leases | 88,451 | 100.0 | % | 275,864 | 100.0 | % | 334,488 | 100.0 | % | 666,368 | 100.0 | % | 950,629 | 100.0 | % | |||||||||||||||||||||||||
Total past due loans and Financial leases | Ps | 145,274 | Ps | 451,436 | Ps | 569,335 | Ps | 1,104,933 | Ps | 1,624,005 | ||||||||||||||||||||||||||||||
Total non-performing past due loans and Financial leases | 88,451 | 275,864 | 334,488 | 666,368 | 950,629 | |||||||||||||||||||||||||||||||||||
Foreclosed assets | 153,071 | 236,536 | 193,004 | 234,116 | 204,480 | |||||||||||||||||||||||||||||||||||
Other accounts receivable more than 180 days past due | 5,813 | 28,980 | 29,146 | 38,182 | 34,486 | |||||||||||||||||||||||||||||||||||
Total non-performing assets | Ps | 247,335 | Ps | 541,380 | Ps | 556,638 | Ps | 938,666 | Ps | 1,189,595 | ||||||||||||||||||||||||||||||
Allowance for loan and financial leases losses | (434,378 | ) | (705,882 | ) | (834,183 | ) | (1,457,151 | ) | (2,134,360 | ) | ||||||||||||||||||||||||||||||
Allowance for estimated losses on foreclosed assets | (140,865 | ) | (205,176 | ) | (174,393 | ) | (201,822 | ) | (179,827 | ) | ||||||||||||||||||||||||||||||
Allowance for accounts receivable and accrued interest losses | (18,807 | ) | (40,727 | ) | (34,936 | ) | (69,956 | ) | (114,009 | ) | ||||||||||||||||||||||||||||||
Loans at least one day past due as a percentage of total loans | 1.5 | % | 2.5 | % | 2.3 | % | 2.9 | % | 3.6 | % | ||||||||||||||||||||||||||||||
Allowance for loan losses as a percentage of loans at least one day past due | 299.0 | % | 156.4 | % | 146.5 | % | 131.9 | % | 131.4 | % | ||||||||||||||||||||||||||||||
Allowance for loan losses as a percentage of loans classified as “C”, “D” and “E” | 112.3 | % | 112.2 | % | 133.2 | % | 124.5 | % | 120.2 | % | ||||||||||||||||||||||||||||||
Percentage of performing loans to total loans | 99.1 | % | 98.5 | % | 98.6 | % | 98.2 | % | 97.9 | % |
(1) | Performing past due loans are loans upon which the Bank continues to recognize income although interest has not been received for the periods indicated. Once interest is unpaid on accrual loans for a longer period than is specified above, the loan is classified as non-performing. Under Colombian Banking regulations, a loan is past due when it is at least 31 days past the actual due date. Bancolombia (unconsolidated), Sufinanciamiento, Patrimonio Autónomo C.V. Sufinanciamiento, Bancolombia Panamá and Bancolombia Cayman, adopted a policy, in which all loans and financial leasing operations of any type, with the exception of mortgage loans that are more than 30 days past due, cease to accumulate interest on the statement of operations and instead are recorded in the memorandum accounts until such time the client proceeds with their payment. | |
(2) | The Consumer financial leases are due from 31 to 60 days and the commercial financial leases are due from 31 to 90 days. | |
(3) | Effective as of January 1, 2005, External Circular 052 of 2004 of the Superintendency of Finance modified the classification between performing and non — performing loans. According to the new regulation mortgage and small business loans are classified as non -performing when they are past due more than 60 and 30 days, respectively. This change in the regulation applies for fiscal years 2005, 2006, 2007 and 2008. For fiscal years ended on December 31, 2004, mortgage and small business loans are classified as nonperforming when they are past due more than 120 and 60 days, respectively. |
2004 | 2005 | 2006 | 2007(1) | 2008 | ||||||||||||||||||||||||||||||||
Foreign | Domestic | Foreign | Domestic | |||||||||||||||||||||||||||||||||
Total | Total | Total | Loans | Loans | Total | Loans | Loans | Total | ||||||||||||||||||||||||||||
Non-performing past due loans: | ||||||||||||||||||||||||||||||||||||
Consumer loans past due more than 61 days | Ps | 40,882 | Ps | 66,121 | Ps | 114,101 | Ps | 29,920 | Ps | 204,739 | Ps | 234,659 | Ps | 52,666 | Ps | 243,487 | Ps | 296,153 | ||||||||||||||||||
Small loans past due more than 31 days | 3,781 | 5,979 | 10,003 | 1,742 | 12,888 | 14,630 | 2,017 | 15,583 | 17,600 | |||||||||||||||||||||||||||
Commercial loans past due more than 90 days | 40,171 | 114,496 | 133,987 | 41,426 | 192,457 | 233,883 | 50,613 | 336,958 | 387,571 | |||||||||||||||||||||||||||
Mortgage loans past due from 60/90/120 | 37 | 77,394 | 65,187 | 18,735 | 105,516 | 124,251 | 23,313 | 161,284 | 184,597 | |||||||||||||||||||||||||||
Financial leases past due from 31 to 60/90 days | 3,580 | 11,874 | 11,210 | 43 | 58,902 | 58,945 | 1,548 | 63,160 | 64,708 | |||||||||||||||||||||||||||
Total non-performing past due loans and financial leases | Ps | 88,451 | Ps | 275,864 | Ps | 334,488 | Ps | 91,866 | Ps | 574,502 | Ps | 666,368 | Ps | 130,157 | Ps | 820,472 | Ps | 950,629 | ||||||||||||||||||
(1) | In 2007 the Foreign loan category becomes material to the Bank due to the acquisition of Banagrícola. |
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As of December 31, | ||||||||||||||||||||||||||||||||||||||||
2004 | % | 2005 | % | 2006 | % | 2007(2) | % | 2008 | % | |||||||||||||||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||||||||||||||
Trade financing | Ps | 3,862 | 2.7 | % | Ps | 9,728 | 2.2 | % | Ps | 18,218 | 3.2 | % | Ps | 9,073 | 1.0 | % | Ps | 2,472 | 0.2 | % | ||||||||||||||||||||
Loans funded by development banks | 1,705 | 1.2 | % | 7,463 | 1.7 | % | 6,820 | 1.2 | % | 6,710 | 0.7 | % | 22,125 | 1.6 | % | |||||||||||||||||||||||||
Working capital loans | 21,211 | 14.6 | % | 55,354 | 12.3 | % | 67,267 | 11.8 | % | 101,613 | 10.8 | % | 150,795 | 11.1 | % | |||||||||||||||||||||||||
Credit cards | 1,273 | 0.9 | % | 1,616 | 0.4 | % | 2,669 | 0.5 | % | 377 | 0.0 | % | 456 | 0.0 | % | |||||||||||||||||||||||||
Overdrafts | 1,668 | 1.1 | % | 4,177 | 0.9 | % | 7,716 | 1.4 | % | 1,835 | 0.2 | % | 3,032 | 0.2 | % | |||||||||||||||||||||||||
Total corporate | 29,719 | 20.5 | % | 78,338 | 17.4 | % | 102,690 | 18.0 | % | 119,608 | 12.7 | % | 178,880 | 13.1 | % | |||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||||||||||
Credit cards | 13,785 | 9.5 | % | 25,967 | 5.8 | % | 40,307 | 7.1 | % | 144,621 | 15.3 | % | 172,409 | 12.7 | % | |||||||||||||||||||||||||
Personal loans | 43,945 | 30.2 | % | 63,008 | 14.0 | % | 113,514 | 19.9 | % | 128,954 | 13.7 | % | 144,336 | 10.6 | % | |||||||||||||||||||||||||
Vehicle loans | 9,697 | 6.7 | % | 23,829 | 5.3 | % | 41,641 | 7.3 | % | 74,379 | 7.9 | % | 142,336 | 10.5 | % | |||||||||||||||||||||||||
Overdrafts | 8,637 | 5.9 | % | 10,234 | 2.3 | % | 11,771 | 2.1 | % | 27,932 | 3.0 | % | 33,277 | 2.5 | % | |||||||||||||||||||||||||
Loans funded by development banks | 6,382 | 4.4 | % | 8,391 | 1.9 | % | 12,166 | 2.1 | % | 21,168 | 2.2 | % | 33,530 | 2.5 | % | |||||||||||||||||||||||||
Trade financing | 156 | 0.1 | % | 658 | 0.1 | % | 1,403 | 0.2 | % | 3,213 | 0.3 | % | 8,169 | 0.6 | % | |||||||||||||||||||||||||
Working capital loans | 22,743 | 15.7 | % | 41,000 | 9.1 | % | 57,976 | 10.2 | % | 139,307 | 14.8 | % | 287,587 | 21.2 | % | |||||||||||||||||||||||||
Total retail | 105,345 | 72.5 | % | 173,087 | 38.3 | % | 278,778 | 49.0 | % | 539,574 | 57.2 | % | 821,644 | 60.6 | % | |||||||||||||||||||||||||
Financial Leases(1) | 10,173 | 7.0 | % | 22,175 | 4.9 | % | 46,359 | 8.1 | % | 119,956 | 12.7 | % | 155,678 | 11.5 | % | |||||||||||||||||||||||||
Mortgage | 37 | 0.0 | % | 177,836 | 39.4 | % | 141,508 | 24.9 | % | 164,901 | 17.4 | % | 201,186 | 14.8 | % | |||||||||||||||||||||||||
Total past due loans | Ps | 145,274 | 100.0 | % | Ps | 451,436 | 100.0 | % | Ps | 569,335 | 100.0 | % | Ps | 944,039 | 100.0 | % | Ps | 1,357,388 | 100.0 | % | ||||||||||||||||||||
Foreign | ||||||||||||||||||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||||||||||||||
Trade financing | Ps | 5,098 | 3.2 | % | Ps | 19,157 | 7.2 | % | ||||||||||||||||||||||||||||||||
Loans funded by development banks | 1,132 | 0.7 | % | 1,552 | 0.6 | % | ||||||||||||||||||||||||||||||||||
Working capital loans | 64,522 | 40.1 | % | 106,532 | 40.0 | % | ||||||||||||||||||||||||||||||||||
Credit cards | 130 | 0.0 | % | 222 | 0.0 | % | ||||||||||||||||||||||||||||||||||
Overdrafts | 137 | 0.1 | % | 341 | 0.1 | % | ||||||||||||||||||||||||||||||||||
Total corporate | 71,019 | 44.1 | % | 127,804 | 47.9 | % | ||||||||||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||||||||||
Credit cards | 6,901 | 4.3 | % | 10,692 | 4.0 | % | ||||||||||||||||||||||||||||||||||
Personal loans | 39,739 | 24.7 | % | 63,172 | 23.7 | % | ||||||||||||||||||||||||||||||||||
Vehicle loans | 116 | 0.0 | % | 110 | 0.0 | % | ||||||||||||||||||||||||||||||||||
Overdrafts | 321 | 0.2 | % | 103 | 0.0 | % | ||||||||||||||||||||||||||||||||||
Loans funded by development banks | 96 | 0.1 | % | 568 | 0.2 | % | ||||||||||||||||||||||||||||||||||
Trade financing | 191 | 0.1 | % | 243 | 0.1 | % | ||||||||||||||||||||||||||||||||||
Working capital loans | 1,535 | 1.0 | % | 1,764 | 0.7 | % | ||||||||||||||||||||||||||||||||||
Total retail | 48,899 | 30.4 | % | 76,652 | 28.7 | % | ||||||||||||||||||||||||||||||||||
Financial Leases(1) | 43 | 0.0 | % | 7,674 | 2.9 | % | ||||||||||||||||||||||||||||||||||
Mortgage | 40,933 | 25.5 | % | 54,487 | 20.5 | % | ||||||||||||||||||||||||||||||||||
Total past due loans | Ps | 160,894 | 100.0 | % | Ps | 266,617 | 100.0 | % | ||||||||||||||||||||||||||||||||
(1) | Includes financial leases, according to regulations issued by the Superintendency of Finance and effective as of January 1, 2004. | |
(2) | In 2007 the foreign loan category becomes material to the Bank due to the acquisition of Banagrícola. |
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As of December 31, | ||||||||||||||||||||||||||||||||||||||||
2004 | % | 2005 | % | 2006 | % | 2007 | % | 2008 | % | |||||||||||||||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||||||||||||||||||
Secured | ||||||||||||||||||||||||||||||||||||||||
Current | Ps | 3,950,303 | 39.4 | % | Ps | 7,947,554 | 42.7 | % | Ps | 10,762,717 | 43.7 | % | Ps | 16,923,998 | 44.9 | % | Ps | 17,779,101 | 39.8 | % | ||||||||||||||||||||
Past due loans from 31 to 90 days (commercial) | 16,295 | 0.2 | 30,193 | 0.2 | 41,594 | 0.2 | 93,309 | 0.2 | 147,402 | 0.3 | ||||||||||||||||||||||||||||||
Past due financial leases 31 to 90 days (commercial) | 6,514 | 0.1 | 9,767 | 0.1 | 32,993 | 0.1 | 57,284 | 0.2 | 95,304 | 0.2 | ||||||||||||||||||||||||||||||
Past due loans from 31 to 60 days (consumer) | 7,027 | 0.1 | 8,946 | 0.0 | 11,910 | 0.1 | 27,429 | 0.1 | 27,621 | 0.1 | ||||||||||||||||||||||||||||||
Past due financial leases from 31 to 60 days (consumer) | 79 | 0.0 | 534 | 0.0 | 2,157 | 0.0 | 3,771 | 0.0 | 3,340 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 31 to 60 days (small business loans) | 665 | 0.0 | 712 | 0.0 | 1,054 | 0.0 | 1,895 | 0.0 | 2,090 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 31 to 120 days (mortgage) | — | 0.0 | 131,268 | 0.7 | 99,885 | 0.4 | 122,440 | 0.3 | 162,880 | 0.4 | ||||||||||||||||||||||||||||||
Past due loans from 61 to 90 days (consumer) | 3,441 | 0.0 | 4,336 | 0.0 | 5,150 | 0.0 | 12,913 | 0.0 | 13,276 | 0.0 | ||||||||||||||||||||||||||||||
Past due financial leases from 61 to 90 days (consumer) | 78 | 0.0 | 134 | 0.0 | 770 | 0.0 | 655 | 0.0 | 2,431 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 61 to 90 days (small business loans) | 411 | 0.0 | 445 | 0.0 | 644 | 0.0 | 942 | 0.0 | 1,208 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 91 to 180 days (commercial) | 8,730 | 0.1 | 14,306 | 0.1 | 19,582 | 0.1 | 36,358 | 0.1 | 71,915 | 0.2 | ||||||||||||||||||||||||||||||
Past due financial leases from 91 to 180 days (commercial) | 1,845 | 0.0 | 4,900 | 0.0 | 4,143 | 0.0 | 43,618 | 0.1 | 29,065 | 0.1 | ||||||||||||||||||||||||||||||
Past due loans from 91 to 180 days (consumer) | 6,074 | 0.1 | 5,380 | 0.0 | 6,938 | 0.0 | 16,080 | 0.0 | 19,811 | 0.0 | ||||||||||||||||||||||||||||||
Past due financial leases from 91 to 180 days (consumer) | 83 | 0.0 | 344 | 0.0 | 418 | 0.0 | 644 | 0.0 | 2,138 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 91 to 120 days (small business loans) | 926 | 0.0 | 1,130 | 0.0 | 2,274 | 0.0 | 4,319 | 0.0 | 4,877 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 121 to 180 days (mortgage) | — | 0.0 | 13,631 | 0.1 | 11,248 | 0.0 | 20,627 | 0.1 | 30,896 | 0.1 | ||||||||||||||||||||||||||||||
Past due loans from 181 to 360 days (commercial) | 6,156 | 0.1 | 17,938 | 0.1 | 21,733 | 0.1 | 25,277 | 0.1 | 84,551 | 0.2 | ||||||||||||||||||||||||||||||
Past due financial leases from 181 to 360 days (commercial) | 924 | 0.0 | 3,304 | 0.0 | 3,946 | 0.0 | 6,792 | 0.0 | 26,182 | 0.1 | ||||||||||||||||||||||||||||||
Past due loans from 181 days to 360 days (consumer) | 3,348 | 0.0 | 4,487 | 0.0 | 5,118 | 0.0 | 16,179 | 0.0 | 10,226 | 0.0 | ||||||||||||||||||||||||||||||
Past due financial leases from 181 to 360 days (consumer) | 76 | 0.0 | 149 | 0.0 | 164 | 0.0 | 1,149 | 0.0 | 900 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 121 to 360 days (small business loans) | — | 0.0 | — | 0.0 | — | 0.0 | — | 0.0 | — | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 181 days to 360 days (mortgage) | 37 | 0.0 | 16,651 | 0.1 | 16,973 | 0.1 | 24,559 | 0.1 | 40,521 | 0.1 | ||||||||||||||||||||||||||||||
Past due loans more than 360 days | 9,661 | 0.1 | 24,636 | 0.1 | 33,676 | 0.1 | 82,105 | 0.2 | 71,758 | 0.2 | ||||||||||||||||||||||||||||||
Past due financial leases more than 360 days | 573 | 0.0 | 3,043 | 0.0 | 1,769 | 0.0 | 6,087 | 0.0 | 3,992 | 0.0 | ||||||||||||||||||||||||||||||
Total | Ps | 4,023,246 | 40.2 | % | Ps | 8,243,788 | 44.2 | % | Ps | 11,086,856 | 45.0 | % | Ps | 17,528,430 | 46.4 | % | Ps | 18,631,485 | 41.8 | % | ||||||||||||||||||||
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As of December 31, | ||||||||||||||||||||||||||||||||||||||||
2004 | % | 2005 | % | 2006 | % | 2007 | % | 2008 | % | |||||||||||||||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||||||||||||||||||
Unsecured(1) | ||||||||||||||||||||||||||||||||||||||||
Current | Ps | 5,939,662 | 59.2 | % | Ps | 10,227,262 | 55.0 | % | Ps | 13,313,522 | 54.0 | % | Ps | 19,673,693 | 52.2 | % | Ps | 25,239,464 | 56.5 | |||||||||||||||||||||
Past due loans from 31 to 90 days (commercial) | 10,103 | 0.1 | 16,292 | 0.1 | 32,983 | 0.1 | 70,854 | 0.2 | 175,783 | 0.3 | ||||||||||||||||||||||||||||||
Past due loans from 31 to 60 days (consumer) | 14,960 | 0.1 | 25,684 | 0.1 | 50,291 | 0.2 | 104,395 | 0.3 | 123,141 | 0.3 | ||||||||||||||||||||||||||||||
Past due loans from 31 to 60 days (small business loans) | 1,180 | 0.0 | 923 | 0.0 | 1,879 | 0.0 | 1,891 | 0.0 | 2,991 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 61 to 90 days (consumer) | 7,115 | 0.1 | 13,678 | 0.1 | 23,495 | 0.1 | 49,112 | 0.1 | 70,628 | 0.2 | ||||||||||||||||||||||||||||||
Past due loans from 61 to 90 days (small business loans) | 557 | 0.0 | 664 | 0.0 | 943 | 0.0 | 1,022 | 0.0 | 1,534 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 91 to 180 days (commercial) | 3,980 | 0.0 | 27,230 | 0.1 | 10,206 | 0.0 | 27,896 | 0.1 | 60,071 | 0.1 | ||||||||||||||||||||||||||||||
Past due loans from 91 to 180 days (consumer) | 12,490 | 0.1 | 21,809 | 0.1 | 36,662 | 0.2 | 80,027 | 0.2 | 121,453 | 0.3 | ||||||||||||||||||||||||||||||
Past due loans from 91 to 120 days (small business loans) | 1,887 | 0.0 | 2,105 | 0.0 | 3,209 | 0.0 | 4,561 | 0.0 | 4,900 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 181 to 360 days (commercial) | 6,863 | 0.1 | 19,017 | 0.1 | 21,957 | 0.1 | 60,490 | 0.2 | 69,823 | 0.2 | ||||||||||||||||||||||||||||||
Past due loans from 181 days to 360 days (consumer) | 8,414 | 0.1 | 16,431 | 0.1 | 36.738 | 0.2 | 60,348 | 0.2 | 60,759 | 0.1 | ||||||||||||||||||||||||||||||
Past due loans more than 360 days | 4,782 | 0.0 | 11,369 | 0.1 | 26,833 | 0.1 | 39,905 | 0.1 | 80,538 | 0.2 | ||||||||||||||||||||||||||||||
Total | Ps | 6,011,993 | 59.8 | % | Ps | 10,382,464 | 55.8 | % | Ps | 13,558,718 | 55.0 | % | Ps | 20,174,194 | 53.6 | % | Ps | 26,011,085 | 58.2 | % | ||||||||||||||||||||
Total current loans and financial leases | Ps | 9,889,965 | 98.6 | % | Ps | 18,174,816 | 97.7 | % | Ps | 24,076,239 | 97.7 | % | Ps | 36,597,691 | 97.1 | % | Ps | 43,018,565 | 96.3 | % | ||||||||||||||||||||
Past due loans from 31 to 90 days (commercial) | 26,398 | 0.3 | 46,485 | 0.2 | 74,577 | 0.3 | 164,163 | 0.4 | 323,185 | 0.7 | ||||||||||||||||||||||||||||||
Past due financial leases from 31 to 90 days (commercial) | 6,514 | 0.1 | 9,767 | 0.1 | 32,993 | 0.1 | 57,284 | 0.2 | 95,304 | 0.2 | ||||||||||||||||||||||||||||||
Past due loans from 31 to 60 days (consumer) | 21,987 | 0.2 | 34,630 | 0.2 | 62,201 | 0.3 | 131,824 | 0.3 | 150,762 | 0.3 | ||||||||||||||||||||||||||||||
Past due financial leases from 31 to 60 days (consumer) | 79 | 0.0 | 534 | 0.0 | 2,157 | 0.0 | 3,771 | 0.0 | 3,340 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 31 to 60 days (small business loans) | 1,845 | 0.0 | 1,635 | 0.0 | 2,933 | 0.0 | 3,786 | 0.0 | 5,081 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 31 to 120 days (mortgage) | — | 0.0 | 131,268 | 0.7 | 99,885 | 0.4 | 122,440 | 0.3 | 162,880 | 0.4 | ||||||||||||||||||||||||||||||
Past due loans from 61 to 90 days (consumer) | 10,556 | 0.1 | 18,014 | 0.1 | 28,645 | 0.1 | 62,025 | 0.2 | 83,904 | 0.2 | ||||||||||||||||||||||||||||||
Past due financial leases from 61 to 90 days (consumer) | 78 | 0.0 | 134 | 0.0 | 770 | 0.0 | 655 | 0.0 | 2,431 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 61 to 90 days (small business loans) | 968 | 0.0 | 1,109 | 0.0 | 1,587 | 0.0 | 1,964 | 0.0 | 2,742 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 91 to 180 days (commercial) | 12,710 | 0.1 | 41,536 | 0.2 | 29,788 | 0.1 | 64,254 | 0.2 | 131,986 | 0.3 | ||||||||||||||||||||||||||||||
Past due financial leases from 91 to 180 days (commercial) | 1,845 | 0.0 | 4,900 | 0.0 | 4,143 | 0.0 | 43,618 | 0.1 | 29,065 | 0.1 | ||||||||||||||||||||||||||||||
Past due loans from 91 to 180 days (consumer) | 18,564 | 0.2 | 27,189 | 0.1 | 43,600 | 0.2 | 96,107 | 0.3 | 141,264 | 0.3 | ||||||||||||||||||||||||||||||
Past due financial leases from91 to 180 days (consumer) | 83 | 0.0 | 344 | 0.0 | 418 | 0.0 | 644 | 0.0 | 2,138 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 91 to 120 days (small business loans) | 2,813 | 0.0 | 3,235 | 0.0 | 5,483 | 0.0 | 8,880 | 0.0 | 9,777 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 121 to 180 days (mortgage) | — | 0.0 | 13,631 | 0.1 | 11,248 | 0.1 | 20,627 | 0.1 | 30,896 | 0.1 |
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As of December 31, | ||||||||||||||||||||||||||||||||||||||||
2004 | % | 2005 | % | 2006 | % | 2007 | % | 2008 | % | |||||||||||||||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||||||||||||||||||
Past due loans from 181 to 360 days (commercial) | 13,019 | 0.2 | 36,955 | 0.2 | 43,690 | 0.2 | 85,767 | 0.2 | 154,374 | 0.4 | ||||||||||||||||||||||||||||||
Past due financial leases from 181 to 360 days (commercial) | 924 | 0.0 | 3,304 | 0.0 | 3,946 | 0.0 | 6,792 | 0.0 | 26,182 | 0.1 | ||||||||||||||||||||||||||||||
Past due loans from 181 days to 360 days (consumer) | 11,762 | 0.1 | 20,918 | 0.1 | 41,856 | 0.2 | 76,527 | 0.2 | 70,985 | 0.2 | ||||||||||||||||||||||||||||||
Past due financial leases from 181 to 360 days (consumer) | 76 | 0.0 | 149 | 0.0 | 164 | 0.0 | 1,149 | 0.0 | 900 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 181 days to 360 days (mortgage) | 37 | 0.0 | 16,651 | 0.1 | 16,973 | 0.1 | 24,559 | 0.1 | 40,521 | 0.1 | ||||||||||||||||||||||||||||||
Total past due loans more than 360 days | 14,443 | 0.1 | 36,005 | 0.2 | 60,509 | 0.3 | 122,010 | 0.3 | 152,296 | 0.3 | ||||||||||||||||||||||||||||||
Total past due financial leases more than 360 days | 573 | 0.0 | 3,043 | 0.0 | 1,769 | 0.0 | 6,087 | 0.0 | 3,992 | 0.0 | ||||||||||||||||||||||||||||||
Total past due loans and financial leases | Ps | 145,274 | 1.4 | Ps | 451,436 | 2.3 | Ps | 569,335 | 2.3 | Ps | 1,104,933 | 2.9 | Ps | 1,624,005 | 3.7 | % | ||||||||||||||||||||||||
Total gross loans and financial leases | 10,035,239 | 100.0 | 18,626,252 | 100 | 24,645,574 | 100 | % | 37,702,624 | 100 | % | 44,642,570 | 100 | % | |||||||||||||||||||||||||||
Allowance for loan and financial lease losses | Ps | (434,378 | ) | (4.3 | ) | Ps | (705,882 | ) | (3.8 | ) | Ps | (834,183 | ) | (3.4 | ) | Ps | (1,457,151 | ) | (3.9 | ) | Ps | (2,134,360 | ) | (4.8 | ) | |||||||||||||||
Total loans and financial leases, net | Ps | 9,600,861 | 95.7 | % | Ps | 17,920,370 | 96.2 | % | Ps | 23,811,391 | 96.6 | % | Ps | 36,245,473 | 96.1 | % | Ps | 42,508,210 | 95.2 | % | ||||||||||||||||||||
(1) | Includes loans with personal guarantees. |
As of December 31, 2008 | ||||||||||||
Interest income | ||||||||||||
included in net income | ||||||||||||
Amount of Loans | Gross Interest Income | for the period | ||||||||||
(Ps million) | ||||||||||||
Foreign loans | Ps | 130,157 | Ps | 18,460 | Ps | 11,906 | ||||||
Domestic Loans | Ps | 820,472 | Ps | 364,720 | Ps | 265,176 | ||||||
Non-performing loans | Ps | 950,629 | Ps | 383,180 | Ps | 277,082 | ||||||
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As of December 31, | ||||||||||||||||||||
2004 | 2005 | 2006 | 2007(1) | 2008 | ||||||||||||||||
(Ps million) | ||||||||||||||||||||
Foreign Loans | — | — | — | Ps | 111,870 | Ps | 176,246 | |||||||||||||
Domestic Loans | Ps | 537,703 | Ps | 619,388 | Ps | 578,099 | Ps | 521,181 | Ps | 623,722 | ||||||||||
Total Performing Troubled Debt Restructuring Loans | Ps | 537,703 | Ps | 619,388 | Ps | 578,099 | Ps | 633,051 | Ps | 799,968 | ||||||||||
(1) | In 2007 the foreign loan category becomes material to the Bank due to the acquisition of Banagrícola. |
As of December 31, 2008 | ||||||||||||
Interest income | ||||||||||||
included in net income | ||||||||||||
Amount of Loans | Gross Interest Income | for the period | ||||||||||
(Ps million) | ||||||||||||
Foreign loans | Ps | 176,246 | Ps | 12,590 | Ps | 12,462 | ||||||
Domestic Loans | Ps | 623,722 | Ps | 62,940 | Ps | 62,940 | ||||||
Total Performing Troubled Debt Restructuring loans | Ps | 799,968 | Ps | 75,530 | Ps | 75,402 | ||||||
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• | Uncollateralized loans to a single customer or economic group may not exceed 10% of the Bank’s (unconsolidated) Technical Capital | ||
• | Collateralized loans to a single customer or economic group may not exceed 25% of the Bank’s (unconsolidated) Technical Capital; | ||
• | A loan to a shareholder of the Bank, who owns a position exceeding 20% of the Bank’s Capital, may not exceed 20% of the Bank’s (unconsolidated) Technical Capital; and | ||
• | A loan to a financial institution may not exceed 30% of the Bank’s (unconsolidated) Technical Capital. |
Maximum loan approval limits | ||||||||||||||||
Authorization level: | Unsecured loans (1) | Secured loans | ||||||||||||||
(U.S. dollar) | (Ps million) | (U.S. dollar) | (Ps million) | |||||||||||||
Branch Managers and Zone Managers | There is no pre-established limit. Approval limits are set by senior management, and cannot exceed the limits set for Regional Managers | There is no pre-established limit. Approval limits are set by senior management, and cannot exceed the limits set for Regional Managers | ||||||||||||||
Regional Managers Corporate Banking | 2,338,823 | 5,247 | 3,898,038 | 8,746 | ||||||||||||
Small and Medium Sized Enterprises and Personal Banking Regional Managers | 1,604,571 | 3,600 | 2,674,285 | 6,000 | ||||||||||||
Small and Medium Sized Enterprises and Personal Banking Vice Presidents(2) | 8,079,341 | 18,127 | 13,465,568 | 30,211 | ||||||||||||
Vice President of Mortgage Banking | 5,386,227 | 12,084 | 8,977,045 | 20,141 | ||||||||||||
Corporate Banking and Financial Vice Presidents(2) | 8,079,341 | 18,127 | 13,465,568 | 30,211 | ||||||||||||
Vice President of Human Resources | 157,547 | 353 | 262,579 | 589 | ||||||||||||
President | 13,041,542 | 29,260 | 21,735,903 | 48,766 | ||||||||||||
Credit Committee | All loans, other than those requiring the approval of the Board of Directors, within the limits established by law | All loans, other than those requiring the approval of the Board of Directors, within the limits established by law |
(1) | Includes loans with a personal guarantee. | |
(2) | This approval limit corresponds to a percentage of the Bank’s Technical Capital. Vice Presidents’ approval limits are established depending on the borrower credit risk level. The amounts set in the table above are established to grant loans to borrowers with the lowest credit risk level. The approval limits decrease as the borrower credit risk level increases. |
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Year Ended December 31, | ||||||||||||||||||||
2004 | 2005 | 2006 | 2007 | 2008 | ||||||||||||||||
(Ps million) | ||||||||||||||||||||
Balance at beginning of period | Ps | 387,263 | Ps | 434,378 | Ps | 705,882 | Ps | 834,183 | Ps | 1,457,151 | ||||||||||
Balance at beginning of period (Factoring Bancolombia) | — | — | 5,625 | — | — | |||||||||||||||
Balance at beginning of period (Conavi, Corfinsura and subsidiaries) | — | 236,013 | — | — | — | |||||||||||||||
Balance at beginning of period (Banagrícola’s subsidiaries) (3) | — | — | — | 147,357 | — | |||||||||||||||
Allowance for financial leasing reclassification | 7,002 | — | — | — | — | |||||||||||||||
Provisions for loan losses (1) | 186,480 | 374,744 | 568,679 | 1,203,543 | 1,986,710 | |||||||||||||||
Charge-offs | (55,032 | ) | (115,455 | ) | (136,789 | ) | (186,273 | ) | (547,860 | ) | ||||||||||
Effect of difference in exchange rate | (12,751 | ) | (3,955 | ) | (1,210 | ) | (25,441 | ) | 45,604 | |||||||||||
Reclassification-Securitization | — | (11,947 | ) | — | — | — | ||||||||||||||
Reversals of provisions | (78,584 | ) | (207,896 | ) | (308,004 | ) | (516,218 | ) | (807,245 | ) | ||||||||||
Balance at end of year (2) | Ps | 434,378 | Ps | 705,882 | Ps | 834,183 | Ps | 1,457,151 | Ps | 2,134,360 | ||||||||||
(1) | The provision for past due accrued interest receivable, which is not included in this item, amounted to Ps 4,483 million, Ps 12,379 million, Ps 14,825 million, Ps 35,543 million and Ps 58,721 million for the years ended December 31, 2004, 2005, 2006, 2007 and 2008, respectively. | |
(2) | The allowance past due accrued interest receivable, which is not included in this item, amounted to Ps 4,603 million, Ps 8,655 million, Ps 11,644 million, Ps 33,303 million and Ps 54,323 million for the years ended December 31, 2004, 2005, 2006, 2007 and 2008, respectively. | |
(3) | Includes allowance for loan losses of Banco Agrícola, Banco Agrícola (Panamá), Arrendadora Financiera, Credibac, Aseguradora Suiza Salvadoreña and Asesuisa Vida. |
As of December 31, | ||||||||||||||||||||
2004 | 2005 | 2006 | 2007 | 2008 | ||||||||||||||||
(Ps million) | ||||||||||||||||||||
Commercial loans | Ps | 271,296 | Ps | 387,473 | Ps | 356,272 | Ps | 791,957 | Ps | 1,202,047 | ||||||||||
Consumer loans | 49,350 | 88,052 | 152,842 | 340,247 | 502,496 | |||||||||||||||
Small business loans | 4,271 | 4,679 | 6,365 | 9,050 | 12,424 | |||||||||||||||
Financial leases | 6,529 | 16,342 | 49,463 | 133,837 | 197,952 | |||||||||||||||
Mortgage | 37 | 22,747 | 23,948 | 53,973 | 122,407 | |||||||||||||||
General | 102,895 | 186,589 | 245,293 | 128,087 | 97,034 | |||||||||||||||
Total allowance for loan losses | Ps | 434,378 | Ps | 705,882 | Ps | 834,183 | Ps | 1,457,151 | Ps | 2,134,360 | ||||||||||
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As of December 31, | ||||||||||||||||||||||||||||||||||||||||
2004 | % | 2005 | % | 2006 | % | 2007(2) | % | 2008 | % | |||||||||||||||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||||||||||||||
Trade financing | Ps | 3,496 | 0.8 | % | Ps | 23,598 | 3.3 | % | Ps | 17,154 | 2.1 | % | Ps | 21,184 | 1.7 | % | Ps | 13,081 | 0.7 | % | ||||||||||||||||||||
Loans funded by development banks | 10,057 | 2.3 | % | 20,886 | 3.0 | % | 7,057 | 0.8 | % | 27,612 | 2.2 | % | 61,430 | 3.4 | % | |||||||||||||||||||||||||
Working capital loans | 243,862 | 56.2 | % | 315,725 | 44.7 | % | 261,589 | 31.4 | % | 379,169 | 30.3 | % | 522,065 | 28.8 | % | |||||||||||||||||||||||||
Credit cards | 971 | 0.2 | % | 1,435 | 0.2 | % | 2,324 | 0.3 | % | 1,176 | 0.1 | % | 1,134 | 0.1 | % | |||||||||||||||||||||||||
Overdrafts | 919 | 0.2 | % | 1,781 | 0.3 | % | 3,617 | 0.4 | % | 2,383 | 0.2 | % | 3,983 | 0.2 | % | |||||||||||||||||||||||||
Total corporate | 259,305 | 59.7 | % | 363,425 | 51.5 | % | 291,741 | 35.0 | % | 431,524 | 34.5 | % | 601,693 | 33.2 | % | |||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||||||||||
Credit cards | 11,965 | 2.8 | % | 21,815 | 3.1 | % | 36,062 | 4.3 | % | 128,523 | 10.3 | % | 208,323 | 11.5 | % | |||||||||||||||||||||||||
Personal loans | 27,718 | 6.4 | % | 45,955 | 6.5 | % | 92,625 | 11.1 | % | 126,297 | 10.1 | % | 166,880 | 9.2 | % | |||||||||||||||||||||||||
Vehicle loans | 6,121 | 1.4 | % | 13,837 | 2.0 | % | 30,698 | 3.7 | % | 68,938 | 5.5 | % | 115,593 | 6.4 | % | |||||||||||||||||||||||||
Overdrafts | 2,791 | 0.6 | % | 4,186 | 0.6 | % | 4,274 | 0.5 | % | 16,451 | 1.3 | % | 24,002 | 1.3 | % | |||||||||||||||||||||||||
Loans funded by development banks | 1,770 | 0.4 | % | 3,970 | 0.6 | % | 5,817 | 0.7 | % | 30,064 | 2.4 | % | 41,323 | 2.3 | % | |||||||||||||||||||||||||
Trade financing | 59 | 0.0 | % | 430 | 0.1 | % | 1,254 | 0.2 | % | 5,111 | 0.4 | % | 7,616 | 0.4 | % | |||||||||||||||||||||||||
Working capital loans | 15,188 | 3.6 | % | 26,586 | 3.8 | % | 53,008 | 6.4 | % | 204,022 | 16.3 | % | 330,437 | 18.3 | % | |||||||||||||||||||||||||
Total retail | 65,612 | 15.2 | % | 116,779 | 16.7 | % | 223,738 | 26.9 | % | 579,406 | 46.3 | % | 894,174 | 49.4 | % | |||||||||||||||||||||||||
Financial Leases(1) | 6,529 | 1.4 | % | 16,342 | 2.3 | % | 49,463 | 5.9 | % | 133,757 | 10.7 | % | 187,514 | 10.4 | % | |||||||||||||||||||||||||
Mortgage | 37 | 0.0 | % | 22,747 | 3.2 | % | 23,948 | 2.9 | % | 37,863 | 3.0 | % | 103,133 | 5.7 | % | |||||||||||||||||||||||||
General | 102,895 | 23.7 | % | 186,589 | 26.3 | % | 245,293 | 29.3 | % | 69,011 | 5.5 | % | 24,062 | 1.3 | % | |||||||||||||||||||||||||
Total allowance for loan losses | Ps | 434,378 | 100.0 | % | Ps | 705,882 | 100.0 | % | Ps | 834,183 | 100.0 | % | Ps | 1,251,561 | 100.0 | % | Ps | 1,810,576 | 100.0 | % | ||||||||||||||||||||
Foreign | ||||||||||||||||||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||||||||||||||
Trade financing | Ps | 5,155 | 2.5 | % | Ps | 13,633 | 4.2 | % | ||||||||||||||||||||||||||||||||
Loans funded by development banks | 432 | 0.2 | % | 545 | 0.2 | % | ||||||||||||||||||||||||||||||||||
Working capital loans | 76,002 | 37.0 | % | 132,294 | 40.9 | % | ||||||||||||||||||||||||||||||||||
Credit cards | 97 | 0.0 | % | 177 | 0.0 | % | ||||||||||||||||||||||||||||||||||
Overdrafts | 323 | 0.2 | % | 222 | 0.1 | % | ||||||||||||||||||||||||||||||||||
Total corporate | 82,009 | 39.9 | % | 146,871 | 45.4 | % | ||||||||||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||||||||||
Credit cards | 6,258 | 3.0 | % | 9,469 | 2.9 | % | ||||||||||||||||||||||||||||||||||
Personal loans | 40,388 | 19.6 | % | 62,409 | 19.3 | % | ||||||||||||||||||||||||||||||||||
Vehicle loans | 142 | 0.1 | % | 152 | 0.0 | % | ||||||||||||||||||||||||||||||||||
Overdrafts | 625 | 0.3 | % | 564 | 0.2 | % | ||||||||||||||||||||||||||||||||||
Loans funded by development banks | 108 | 0.1 | % | 274 | 0.1 | % | ||||||||||||||||||||||||||||||||||
Trade financing | 101 | 0.1 | % | 525 | 0.2 | % | ||||||||||||||||||||||||||||||||||
Working capital loans | 692 | 0.3 | % | 838 | 0.3 | % | ||||||||||||||||||||||||||||||||||
Total retail | 48,314 | 23.5 | % | 74,231 | 23.0 | % | ||||||||||||||||||||||||||||||||||
Financial Leases(1) | 81 | 0.0 | % | 10,436 | 3.1 | % | ||||||||||||||||||||||||||||||||||
Mortgage | 16,110 | 7.8 | % | 19,274 | 6.0 | % | ||||||||||||||||||||||||||||||||||
General | 59,076 | 28.8 | % | 72,972 | 22.5 | % | ||||||||||||||||||||||||||||||||||
Total allowance for loan losses | Ps | 205,590 | 100.0 | % | Ps | 323,784 | 100.0 | % | ||||||||||||||||||||||||||||||||
(1) | The allowance for financial leases is included in the allowance for loans since 2004. | |
(2) | In 2007 the foreign loan category became material to the Bank due to the acquisition of Banagrícola. |
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Year ended December 31, | ||||||||||||||||||||
2004 | 2005 | 2006 | 2007(1) | 2008 | ||||||||||||||||
(Ps million) | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Trade financing | Ps | 100 | Ps | 630 | Ps | 5,507 | Ps | 151 | Ps | 2,558 | ||||||||||
Loans funded by domestic development banks | 2,832 | 4,573 | — | 1,320 | 8,820 | |||||||||||||||
Working capital loans | 15,350 | 18,190 | 49,474 | 16,068 | 45,941 | |||||||||||||||
Credit cards | 9,015 | 14,960 | 10,067 | 28,179 | 166,067 | |||||||||||||||
Personal loans | 20,251 | 37,775 | 46,095 | 65,006 | 138,007 | |||||||||||||||
Vehicle loans | 1,981 | 2,508 | 6,483 | 10,131 | 29,088 | |||||||||||||||
Overdrafts | 3,981 | 3,808 | 4,544 | 3,733 | 52,822 | |||||||||||||||
Mortgage & other | 385 | 31,742 | 12,795 | 1,791 | 509 | |||||||||||||||
Financial leases | 1,137 | 1,269 | 1,824 | 2,029 | 27,650 | |||||||||||||||
Total charge-offs | Ps | 55,032 | Ps | 115,455 | Ps | 136,789 | Ps | 128,408 | Ps | 471,462 | ||||||||||
Foreign | ||||||||||||||||||||
Trade financing | — | Ps | 1,819 | |||||||||||||||||
Working capital loans | 31,240 | 21,581 | ||||||||||||||||||
Credit cards | 5,077 | 10,734 | ||||||||||||||||||
Personal loans | 21,079 | 39,073 | ||||||||||||||||||
Vehicle loans | 59 | 88 | ||||||||||||||||||
Overdrafts | 407 | 620 | ||||||||||||||||||
Mortgage & other | — | 2,434 | ||||||||||||||||||
Financial leases | — | 49 | ||||||||||||||||||
Total charge-offs | Ps | 57,862 | Ps | 76,398 | ||||||||||||||||
(1) | In 2007 the foreign loan category became material to the Bank due to the acquisition of Banagrícola. |
Year ended December 31, | ||||||||||||||||||||
2004 | 2006 | 2006 | 2007 | 2008 | ||||||||||||||||
Ratio of charge-offs to average outstanding loans | 0.62 | % | 0.66 | % | 0.63 | % | 0.60 | % | 1.36 | % |
• | Provision of 100% of all amounts past due (capital, interest and other items). |
• | One hundred eighty (180) days past due for consumer and micro loans. |
• | Three hundred sixty (360) days past due for commercial loans and mortgage loans. |
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2006 | 2007 | 2008 | ||||||||||
(thousands of U.S. dollars) | ||||||||||||
Mexico | US$ | 79,312 | US$ | 91,546 | US$ | 73,830 | ||||||
Brazil | 79,736 | 73,943 | 80,383 | |||||||||
United States | 166,380 | 192,221 | 258,665 | |||||||||
Chile | 85,281 | 57,234 | 53,311 | |||||||||
British Virgin Island | 25,596 | 59,488 | 57,594 | |||||||||
Peru | 7,125 | 12,211 | 28,007 | |||||||||
Ecuador | 6,633 | 16,430 | 18,003 | |||||||||
Panama | 9,144 | 94,375 | 54,461 | |||||||||
El Salvador | 9,300 | 2,926,703 | 3,036,433 | |||||||||
Cayman Islands | 1,690 | — | — | |||||||||
Costa Rica | 7,255 | 64,180 | 205,708 | |||||||||
Guatemala | 3,533 | 289,917 | 400,291 | |||||||||
Venezuela | 2,000 | 6,002 | 7 | |||||||||
Germany | — | 4,558 | — | |||||||||
Guyana | 4,000 | 3,000 | 2,000 | |||||||||
Honduras | 4,313 | 38,430 | 49,500 | |||||||||
United Kingdom | 23,209 | 3,122 | 32,419 | |||||||||
Spain | 17,345 | 1,038 | 8 | |||||||||
Switzerland | 40,330 | 15,462 | — | |||||||||
Netherlands | 20,180 | — | — | |||||||||
Uruguay | — | 100 | — | |||||||||
Canada | — | 1,019 | 7 | |||||||||
Austria | — | 1,034 | — | |||||||||
Finland | — | 1,003 | — | |||||||||
Ireland | — | 3,438 | — |
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2006 | 2007 | 2008 | ||||||||||
(thousands of U.S. dollars) | ||||||||||||
Sweden | — | 4,859 | — | |||||||||
Italy | — | 3,049 | 1 | |||||||||
Haiti | — | 2 | — | |||||||||
Norway | — | 1 | 2 | |||||||||
Nicaragua | — | 28,957 | 28,062 | |||||||||
Dominican Republic | — | — | 4,639 | |||||||||
Curaçao | — | — | 3,000 | |||||||||
France | — | — | 6 | |||||||||
Indonesia | — | — | 3 | |||||||||
Mozambique | — | — | 2 | |||||||||
Puerto Rico | — | — | 1 | |||||||||
Saudi Arabia | — | — | 2 | |||||||||
Trinidad and Tobago | — | — | 6 | |||||||||
Total Cross-Border Outstanding Loans and Investments | US$ | 592,362 | US$ | 3,993,322 | US$4,386,351 | |||||||
As of December 31, | ||||||||||||
2006 | 2007 | 2008 | ||||||||||
(Ps million) | ||||||||||||
Non-interest bearing deposits: | ||||||||||||
Checking accounts | Ps | 4,121,506 | Ps | 5,300,864 | Ps | 5,289,918 | ||||||
Other deposits | 459,143 | 503,860 | 433,542 | |||||||||
Total | 4,580,649 | 5,804,724 | 5,723,460 | |||||||||
Interest bearing deposits: | ||||||||||||
Checking accounts | 1,244,348 | 1,567,411 | 2,011,132 | |||||||||
Time deposits | 7,377,586 | 14,304,727 | 18,652,738 | |||||||||
Savings deposits | 10,013,884 | 12,697,288 | 13,997,070 | |||||||||
Total | 18,635,818 | 28,569,426 | 34,660,940 | |||||||||
Total deposits | Ps | 23,216,467 | Ps | 34,374,150 | Ps | 40,384,400 | ||||||
At December 31, 2008 | ||||||||||||
Peso- | U.S. dollar - | |||||||||||
Denominated | Denominated | Total | ||||||||||
(Ps million) | ||||||||||||
Time deposits higher than US$ 100,000(1) | ||||||||||||
Up to 3 months | Ps | 4,657,045 | Ps | 2,976,841 | Ps | 7,633,886 | ||||||
From 3 to 6 months | 1,323,321 | 967,520 | 2,290,841 | |||||||||
From 6 to 12 months | 1,150,076 | 511,043 | 1,661,119 | |||||||||
More than 12 months | 1,461,520 | 421,627 | 1,883,147 | |||||||||
Time deposits less than US$ 100,000(1) | 3,212,912 | 1,970,833 | 5,183,745 | |||||||||
Total | Ps | 11,804,874 | Ps | 6,847,864 | Ps | 18,652,738 | ||||||
(1) | Equivalent to Ps 224 million at the Representative Market Rate as of December 31, 2008. |
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For the Fiscal Year | ||||||||||||
Ended December 31, | ||||||||||||
2006 | 2007 | 2008 | ||||||||||
(in percentages) | ||||||||||||
Net income as a percentage of: | ||||||||||||
Average total assets | 2.31 | 2.52 | 2.34 | |||||||||
Average shareholders’ equity | 22.10 | 26.13 | 23.68 | |||||||||
Dividends declared per share as a percentage of consolidated net income per share(1) | 51.65 | 39.64 | 38.09 | |||||||||
Average shareholders’ equity as a percentage of average total assets | 10.46 | 9.63 | 9.89 | |||||||||
Return on interest-earning assets(2) | 10.5 | 12.9 | 13.5 |
(1) | Dividends are paid based on unconsolidated earnings. Net income per share is calculated using the average number of common and preference shares outstanding during the year. | |
(2) | Defined as total interest earned divided by average interest-earning assets. |
As of December 31, | ||||||||||||||||||||||||
2006 | 2007 | 2008 | ||||||||||||||||||||||
Amount | Rate(1) | Amount | Rate(1) | Amount | Rate(1) | |||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||
End of period | Ps | 1,066,845 | 9.35 | % | Ps | 1,506,611 | 7.74 | % | Ps | 2,077,291 | 3.9 | %(5) | ||||||||||||
Weighted average during period | 1,574,870 | 6.02 | % | 1,748,523 | 6.70 | % | 1,578,252 | 4.7 | % | |||||||||||||||
Maximum amount of borrowing at any month-end | 2,111,978 | (2) | 2,291,460 | (3) | 2,077,291 | (4) | ||||||||||||||||||
Interest paid during the year | 94,872 | 116,615 | 81,178 |
(1) | At the end of the year, the Bank typically increases its U.S. dollar-denominated interbank borrowings, which represent the great majority of interbank borrowings and which have lower interest rates. | |
(2) | February. | |
(3) | April. | |
(4) | December. | |
(5) | Corresponds to the ratio between interest paid by foreign interbank borrowings and capital at the end of the year 2008. |
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Unfavorable factors for the | ||
Favorable factors for the Colombian economy - mid-term | Colombian economy - mid-term | |
Benefits derived from past monetary policies aimed at achieving sustainable growth. | Commodity dependent export activity. | |
Counter-cyclical policies under a stressed environment that are viable thanks to low currency mismatches and upgraded standards aimed at preventing credit risk exposure. | High exposure to fluctuations in external demand from the U.S., Venezuela and Ecuador. | |
Stronger local capital markets, with little exposure to “toxic assets” and with low currency mismatches. | Further deterioration of the global economy and the potential protectionist policies. | |
A well capitalized banking system. | Possible escalation in activities of guerilla and drug cartels that may hurt investor confidence. | |
Well-developed supervision and regulation of the financial system. | High public financial needs coupled with a less dynamic economy and less tax revenues, that may hurt investor confidence. | |
Low levels of mortgage loans (as a percentage of GDP and compared to past years) which makes evident that Colombia does not have the mortgage related problems that have affected countries such as the United States. | Exchange rate uncertainties that could expose the economy to highly volatile markets or build inflation pressures. | |
Decreased credit to households during 2008 and a well provisioned banking system in the midst of a deteriorating labor market. | Credit market restrictions in more advanced economies that could negatively impact foreign direct investment availability. | |
Decreased inflation outlook Adequate international reserves to short term debt. | Inefficient budget execution from regional governments that could delay local infrastructure projects, which are a key factor for improving competitiveness and sustaining the labor market. | |
Limited exposure of corporations to speculation through derivatives. | Decrease in Colombian and Salvadorian remittances due the fast growth unemployment rates mainly in the U.S. and Spain. |
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Year ended December 31, | ||||||||||||
2006 | 2007(1) | 2008 | ||||||||||
(Ps million) | ||||||||||||
Operating expenses: | ||||||||||||
Salaries and employee benefits | Ps | 690,117 | Ps | 835,150 | Ps | 928,997 | ||||||
Bonus plan payments | 35,771 | 84,226 | 125,393 | |||||||||
Compensation | 6,375 | 23,463 | 23,539 | |||||||||
Administrative and other expenses | 882,182 | 1,070,845 | 1,268,982 | |||||||||
Deposit security, net | 67,813 | 49,113 | 52,151 | |||||||||
Donation expenses | 22,596 | 15,375 | 26,653 | |||||||||
Depreciation | 104,553 | 122,835 | 141,133 | |||||||||
Merger expenses | 35,779 | — | — | |||||||||
Goodwill amortization | 25,814 | 70,411 | 73,149 | |||||||||
Total operating expenses | Ps | 1,871,000 | Ps | 2,271,418 | Ps | 2,639,997 | ||||||
(1) | The operating expenses for the year ended 2007 were modified to reflect certain reclassifications made in commissions from banking services and other services, administrative and other expenses and other income that conform to the presentation of 2008 figures, in order to provide a better basis of comparison with respect to 2008 figures regarding the gains on the sale of mortgage loans. No such changes were made for 2006, as the reclassifications would not have a material impact on the figures for that period, and accordingly, would not be material for comparative purposes. |
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Year ended December 31, | ||||||||||||
2006 | 2007(3) | 2008 | ||||||||||
(Ps million) | ||||||||||||
Non-operating income (expenses), net: | ||||||||||||
Other income(1) | Ps | 194,589 | Ps | 93,294 | Ps | 172,550 | ||||||
Minority interest | (6,352 | ) | (13,246 | ) | (18,511 | ) | ||||||
Other expenses(2) | (149,243 | ) | (81,236 | ) | (140,662 | ) | ||||||
Total non-operating income (expenses), net | Ps | 38,994 | Ps | (1,188 | ) | Ps | 13,377 | |||||
(1) | For 2008 and 2007, includes gains on sale of foreclosed assets, property, plant and equipment and other assets, securitization residual benefit, insurance contracts sale and rent. For 2006, includes recovery of deferred tax liability of Ps 98,788 million recorded in 2005 by the Bank. | |
(2) | Other expenses include operational losses and losses from the sale of foreclosed assets, property, plant and equipment and payments for fines, sanctions, lawsuits and indemnities. | |
(3) | The non-operating income (expenses), net for the year ended 2007 was modified to reflect certain reclassifications made in commissions from banking services and other services, administrative and other expenses and other income that conform to the presentation of 2008 figures, in order to provide a better basis of comparison with respect to 2008 figures regarding the gains on the sale of mortgage loans. No such changes were made for 2006, as the reclassifications would not have a material impact on the figures for that period, and accordingly, would not be material for comparative purposes. |
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2006 | 2007 | 2008 | ||||||||||
Checking deposits | 18.4 | % | 15.6 | % | 13.9 | % | ||||||
Time deposits | 25.3 | % | 32.5 | % | 35.4 | % | ||||||
Saving deposits | 34.4 | % | 28.7 | % | 26.6 | % |
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• | Its debt securities portfolio as a source of short-term liquidity by engaging in repurchase agreements transactions, overnight-loan funds and Central Bank’s funds. | ||
• | The issuance of bonds on a regular basis to reduce the maturity mismatch between assets and liabilities, reducing the liquidity risk. During 2008, Bancolombia obtained funds from an issuance of ordinary notes with an aggregate principal amount of Ps 600 billion in a public offering in Colombia. As of December 31, 2008, the total outstanding aggregate principal amount of bonds issued by Bancolombia was Ps 3,643 billion. Additionally, on March 4, 2009, Bancolombia issued subordinated ordinary notes (with maturity of 10-15 years) with an aggregate principal amount of Ps 400 billion. |
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Ps million | 2006 | 2007 | 2008 | |||||||||
Operating activities | (973,836 | ) | (912,668 | ) | (7,133 | ) | ||||||
Investing activities | 2,699,518 | (271,053 | ) | (1,602,345 | ) | |||||||
Financial activities | (1,449,338 | ) | 4,405,742 | 2,000,666 | ||||||||
Net increase in cash and cash equivalents | 276,344 | 3,222,021 | 391,188 |
As of December 31, | ||||||||||||||||||||||||
% of total | % of total | % of total | ||||||||||||||||||||||
2006 | funding | 2007 | funding | 2008 | funding | |||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||
Checking deposits | ||||||||||||||||||||||||
Peso-denominated | Ps | 4,473,717 | 15.3 | % | Ps | 5,143,200 | 11.7 | % | Ps | 5,365,391 | 10.2 | % | ||||||||||||
U.S. dollar-denominated | 892,137 | 3.1 | % | 1,725,075 | 3.9 | % | 1,935,659 | 3.7 | % | |||||||||||||||
Total | 5,365,854 | 18.4 | % | 6,868,275 | 15.6 | % | 7,301,050 | 13.9 | % | |||||||||||||||
Time deposits | ||||||||||||||||||||||||
Peso-denominated | 5,513,961 | 18.9 | % | 8,499,055 | 19.3 | % | 11,804,875 | 22.4 | % | |||||||||||||||
U.S. dollar-denominated | 1,863,625 | 6.4 | % | 5,805,672 | 13.2 | % | 6,847,863 | 13.0 | % | |||||||||||||||
Total | 7,377,586 | 25.3 | % | 14,304,727 | 32.5 | % | 18,652,738 | 35.4 | % | |||||||||||||||
Savings deposits | ||||||||||||||||||||||||
Peso-denominated | 9,863,370 | 33.9 | % | 10,652,306 | 24.1 | % | 11,928,822 | 22.7 | % | |||||||||||||||
U.S. dollar-denominated | 150,514 | 0.5 | % | 2,044,982 | 4.6 | % | 2,068,248 | 3.9 | % | |||||||||||||||
Total | 10,013,884 | 34.4 | % | 12,697,288 | 28.7 | % | 13,997,070 | 26.6 | % | |||||||||||||||
Other deposits | ||||||||||||||||||||||||
Peso-denominated | 369,567 | 1.3 | % | 360,950 | 0.8 | % | 272,755 | 0.5 | % | |||||||||||||||
U.S. dollar-denominated | 89,576 | 0.3 | % | 142,910 | 0.3 | % | 160,787 | 0.3 | % | |||||||||||||||
Total | 459,143 | 1.6 | % | 503,860 | 1.1 | % | 433,542 | 0.8 | % | |||||||||||||||
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As of December 31, | ||||||||||||||||||||||||
% of total | % of total | % of total | ||||||||||||||||||||||
2006 | funding | 2007 | funding | 2008 | funding | |||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||
Interbank Borrowings | ||||||||||||||||||||||||
Peso-denominated | — | 0.0 | % | — | 0.0 | % | 0.0 | % | ||||||||||||||||
U.S. dollar-denominated | 1,066,845 | 3.7 | % | 1,506,611 | 3.4 | % | 2,077,291 | 3.9 | % | |||||||||||||||
Total | 1,066,845 | 3.7 | % | 1,506,611 | 3.4 | % | 2,077,291 | 3.9 | % | |||||||||||||||
Repurchase agreement and interbank funds(1) | ||||||||||||||||||||||||
Peso-denominated | 716,940 | 2.5 | % | 1,199,021 | 2.7 | % | 1,646,924 | 3.1 | % | |||||||||||||||
U.S. dollar-denominated | 290,105 | 1.0 | % | 806,469 | 1.8 | % | 917,284 | 1.7 | % | |||||||||||||||
Total | 1,007,045 | 3.5 | % | 2,005,490 | 4.5 | % | 2,564,208 | 4.8 | % | |||||||||||||||
Borrowings from development and other domestic banks(1) | ||||||||||||||||||||||||
Peso-denominated | 2,446,597 | 8.4 | % | 2,780,971 | 6.3 | % | 3,210,780 | 6.1 | % | |||||||||||||||
U.S. dollar-denominated | 2,984 | 0.0 | % | 563,664 | 1.3 | % | 659,854 | 1.3 | % | |||||||||||||||
Total | 2,449,581 | 8.4 | % | 3,344,635 | 7.6 | % | 3,870,634 | 7.4 | % | |||||||||||||||
Bank acceptances outstanding | ||||||||||||||||||||||||
Peso-denominated | 2,419 | 0.0 | % | 12,957 | 0.0 | % | — | 0.0 | % | |||||||||||||||
U.S. dollar-denominated | 61,611 | 0.2 | % | 42,251 | 0.1 | % | 56,935 | 0.1 | % | |||||||||||||||
Total | 64,030 | 0.2 | % | 55,208 | 0.1 | % | 56,935 | 0.1 | % | |||||||||||||||
Long term debt | ||||||||||||||||||||||||
Peso-denominated | 1,302,702 | 4.5 | % | 1,425,109 | 3.2 | % | 1,957,310 | 3.7 | % | |||||||||||||||
U.S. dollar-denominated | — | 0.0 | % | 1,425,621 | 3.2 | % | 1,686,176 | 3.2 | % | |||||||||||||||
Total | 1,302,702 | 4.5 | % | 2,850,730 | 6.4 | % | 3,643,486 | 6.9 | % | |||||||||||||||
Total funding | ||||||||||||||||||||||||
Peso-denominated | 24,689,273 | 84.8 | % | 30,073,569 | 68.1 | % | 36,186,857 | 68.8 | % | |||||||||||||||
Dollar-denominated | 4,417,397 | 15.2 | % | 14,063,255 | 31.9 | % | 16,410,097 | 31.2 | % | |||||||||||||||
Total | Ps | 29,106,670 | 100.0 | % | Ps | 44,136,824 | 100.0 | % | Ps | 52,596,954 | 100.0 | % | ||||||||||||
(1) | Includes borrowings from commercial banks and other non-financial entities. |
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Maximum potential | ||||||||||||||||||||||||||||||||
Expire within one year | Expire after one year | Total amount outstanding | Amount of future | |||||||||||||||||||||||||||||
2007 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | |||||||||||||||||||||||||
(Ps millions) | ||||||||||||||||||||||||||||||||
Financial standby letters of credit | Ps | 1,007,038 | Ps | 1,577,231 | Ps | 347,883 | Ps | 313,343 | Ps | 1,354,921 | Ps | 1,890,574 | Ps | 1,354,921 | Ps | 1,890,574 | ||||||||||||||||
Bank guarantees | 992,467 | 1,106,968 | 265,981 | 527,089 | 1,258,448 | 1,634,057 | 1,258,448 | 1,634,057 | ||||||||||||||||||||||||
Total | Ps | 1,999,505 | Ps | 2,684,199 | Ps | 613,864 | Ps | 840,432 | Ps | 2,613,369 | Ps | 3,524,631 | Ps | 2,613,369 | Ps | 3,524,631 | ||||||||||||||||
Less than | 1-3 | 3-5 | After | |||||||||||||||||
Contractual Obligations | Total | 1 year | years | years | 5 years | |||||||||||||||
(Ps millions) | ||||||||||||||||||||
Long-term debt obligations | Ps | 3,675,613 | Ps | 32,377 | Ps | 1,377,474 | Ps | 563,141 | Ps | 1,702,621 | ||||||||||
Time deposits | 18,931,213 | 16,957,259 | 1,528,260 | 121,320 | 324,374 | |||||||||||||||
Commitments to originate loans | 1,382,560 | 1,382,560 | — | — | — | |||||||||||||||
Commitments of repurchase of investments | — | — | — | — | — | |||||||||||||||
Employee benefit plans | 111,759 | 12,387 | 27,695 | 32,107 | 39,570 | |||||||||||||||
Borrowings from domestic development banks | 3,870,634 | 6,003 | 1,591,409 | 1,079,529 | 1,193,693 | |||||||||||||||
Total | Ps | 27,971,779 | Ps | 18,390,586 | Ps | 4,524,838 | Ps | 1,796,097 | Ps | 3,260,258 | ||||||||||
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Allowance for | ||||||||||||
Assets | Liabilities | loan losses | ||||||||||
Ps | 1,882,256 | Ps | 873,056 | Ps | 16,045 | |||||||
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First Elected | Term | |||||||
Name | to the Board | Expires | ||||||
David Bojanini García | 2006 | 2011 | ||||||
José Alberto Vélez Cadavid | 1996 | 2011 | ||||||
Carlos Enrique Piedrahita Arocha | 1994 | (1) | 2011 | |||||
Gonzalo Alberto Pérez Rojas | 2004 | (2) | 2011 | |||||
Ricardo Sierra Moreno | 1996 | (3) | 2011 | |||||
Juan Camilo Restrepo Salazar | 2006 | 2011 | ||||||
Alejandro Gaviria Uribe | 2005 | 2011 | ||||||
Alonso Moreno Jaramillo | 2009 | 2011 | ||||||
Carlos Raúl Yepes Jiménez | 2006 | 2011 |
(1) | Carlos Enrique Piedrahita Arocha had previously served as Bancolombia’s Director during the period 1990-1993. | |
(2) | Gonzalo Alberto Pérez Rojas had previously served as Bancolombia’s Director during the period 1990-1994. | |
(3) | Ricardo Sierra Moreno had previously served as Bancolombia’s Director during the period 1982-1988. |
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Name | Period Served | |||
President | ||||
Jorge Londoño Saldarriaga | Since 1996 | |||
Vice Presidents | ||||
Sergio Restrepo Isaza | Since 2005 | |||
Federico Ochoa Barrera | Since 1984 | |||
Jaime Alberto Velásquez Botero | Since 1997 | |||
Juan Carlos Mora Uribe | Since 2005 | |||
Mauricio Rosillo Rojas | Since 2008 | |||
Santiago Pérez Moreno | Since 1989 | |||
Gonzalo Toro Bridge | Since 1998 | |||
Luis Fernando Muñoz Serna | Since 2005 | |||
Olga Botero Peláez | Since 2007 | |||
Luis Arturo Penagos Londoño | Since 2006 | |||
Augusto Restrepo Gómez | Since 2007 | |||
Luis Fernando Montoya Cusso | Since 1998 | |||
Jairo Burgos de la Espriella | Since 1998 | |||
Carlos Alberto Rodríguez López | Since 2008 |
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Total number of employees employed by | Number of employees employed by | |||||||
Bancolombia and its consolidated | Bancolombia and Bancolombia | |||||||
As of December 31 | Subsidiaries | Miami Agency | ||||||
2006 | 16,222 | 12,520 | ||||||
2007 | 24,836 | 12,906 | ||||||
2008 | 19,728 | 13,479 |
• | A pay increase of 9.87% for the first year. For the second year, the increase will be equal to the variation in the Colombian consumer price index (“IPC”), as certified by DANE for the period between November 2008 and October 2009, plus 150 basis points. For the third year, the increase will be equal to the IPC variation, for the period between November 2009 and October 2010, plus 100 basis points. |
• | Improved benefits for Bancolombia’s covered employees, including increases in the amounts of individual housing loans, tuition aid fund, health insurance coverage, transportation and food assistance. |
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% | % | % | ||||||||||||||||||
Ownership | Ownership | Ownership | ||||||||||||||||||
Common | Preferred | of Common | of Preferred | of Total | ||||||||||||||||
Name | Shares | Shares | Shares(1) | Shares(1) | Shares(1) | |||||||||||||||
Suramericana de Inversiones and Subsidiaries(2) | 231,364,770 | 81,000 | 45.39 | % | 0.03 | % | 29.38 | % | ||||||||||||
Inversiones Argos S.A.(3) | 62,386,256 | — | 12.24 | % | 0.00 | % | 7.92 | % | ||||||||||||
ADR Program | — | 178,313,784 | 0.00 | % | 64.11 | % | 22.63 | % | ||||||||||||
Fondo de Pensiones Obligatorias Protección S.A. | 10,250,291 | 26,094,359 | 2.01 | % | 9.38 | % | 4.61 | % | ||||||||||||
Fondo de Pensiones Obligatorias Porvenir | 26,949,162 | 470,640 | 5.29 | % | 0.17 | % | 3.48 | % |
(1) | Common shares have one vote per share; preferred shares have limited voting rights under certain circumstances specified in the by-laws of Bancolombia filed as Exhibit 1 to this Annual Report. | |
(2) | Represents ownership of Suramericana de Inversiones S.A. directly and through its subsidiaries Portafolio de Inversiones Suramericana S.A., Fideicomiso Citirust-Suramericana-IFC, Sociedad Inversionista Anónima S.A., Compañía Suramericana de Construcciones S.A., Cia.Suramericana de Seguros S.A., Cía. Suramericana de Seguros de Vida S.A, Inversiones GVCS S.A., SIA Inversiones S.A. and Suramericana Administradora de Riesgos Profesionales y Seguros SURATEP. | |
(3) | Represents ownership of Inversiones Argos S.A. directly and through subsidiary Cementos Argos S.A. |
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• | subsidiaries must carry out their activities independently and with administrative autonomy, so that they have enough decision-making capacity in order to carry out the transactions that form part of their business purpose. | ||
• | transactions between the parent company and its subsidiaries must be of a real nature and cannot differ considerably from standard market conditions, nor be in detriment to the Colombian government, shareholders or third parties. | ||
• | subsidiaries may not acquire any shares issued by their parent company. | ||
• | subsidiaries dedicated to providing financial services (i.e. brokerage and fiduciary services) may not acquire or negotiate securities issued, endorsed, guaranteed or accepted, or belonging to an issuance that is administered by the parent company or its subsidiaries, except for the transactions undertaken by broker dealers in the ordinary course of business. | ||
• | subsidiaries dedicated to providing financial services (i.e. brokerage and fiduciary services) may not sell assets to the Bank, nor may the latter purchase these from the subsidiary, unless in the context of the liquidation of the subsidiary. | ||
• | parent companies may not carry out active credit operations with a subsidiary dedicated to providing financial services. |
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• | parent companies may not grant overdrafts to a subsidiary dedicated to providing financial services (i.e. brokerage and fiduciary services), except when it corresponds to the value of checks that have been deposited but have not been effectively cleared for subsequent payment, the value of which shall be covered on the business day following the date on which the overdraft is issued. | ||
• | no transaction may be carried out between parent companies and their subsidiaries that implies conflicts of interest as determined by the Superintendency of Finance. |
• | The officer or director shall request authorization by giving prior notice to the Secretary General of the Bank of: i) his or her intention to dispose of or acquire shares, convertible bonds, or securities representing shares, in each case issued by the Bank or by its subsidiaries; ii) the number of shares; iii) the class of shares; iv) the approximate value of the investment; and v) the reasons that motivate the transaction. | ||
• | The Secretary General of the Bank shall present the request of such officer or director at the next meeting of the Bank’s board of directors. The Bank’s board of directors will then decide in accordance with applicable law and the Corporate Governance Code. | ||
• | If the transaction is authorized, the Secretary General of the Bank will announce the transaction as a material fact (“Información Relevante”). | ||
• | In order to avoid speculation, the authorized transaction should be completed within a term established by the Bank’s board of directors. This term shall not exceed two months from the date of the authorization. | ||
• | The officer or director shall notify the Secretary General of the Bank of the completion of the authorized transaction as well as its terms and conditions. | ||
• | The Bank’s Corporate Governance Committee shall supervise the development of authorized transactions upon notification from the Secretary General of the Bank. | ||
• | No prior authorization shall be required in connection with the disposal of shares held through the investment fund “Fondo de Acciones SVA” that have been received as part of variable remuneration. However, a subsequent indirect disposal of shares through instructions to the investment fund requires authorization. |
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• | The months of January, April, July and October of each year and during the first ten (10) calendar days of the remaining months. | ||
• | The period when officers or directors have knowledge of a material transaction or business deal to be entered into by the Bank until such information is made public. |
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2008 | ||||||||
Enterprises that directly or | ||||||||
indirectly through one or more | ||||||||
intermediaries, control or are | ||||||||
controlled by, or are under | ||||||||
common control with, the company | ||||||||
and associates | Key management personnel | |||||||
(Ps million) | ||||||||
Balance Sheet | ||||||||
Investment securities | 54,331 | — | ||||||
Loans | 318,709 | 8,020 | ||||||
Customers’ acceptances and derivatives | 9,496 | — | ||||||
Accounts receivable | 8,353 | 136 | ||||||
Total | Ps | 390,889 | Ps | 8,156 | ||||
Deposits | 1,356,313 | 4,176 | ||||||
Bonds | 96,614 | — | ||||||
Total | Ps | 1,452,927 | Ps | 4,176 | ||||
Transactions Income | ||||||||
Dividends received | 9,737 | — | ||||||
Interest and fees | 39,776 | 3,420 | ||||||
Total | Ps | 49,513 | Ps | 3,420 | ||||
Expenses | ||||||||
Interest | 141,296 | 2,923 | ||||||
Fees | 5 | 892 | ||||||
Total | Ps | 141,301 | Ps | 3,815 | ||||
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• | first, an amount equal to 10% of Bancolombia’s net profits to a legal reserve until such reserve is equal to at least 50% of the Bank’s paid-in capital; | ||
• | second, to the payment of the minimum dividend on the preferred shares (for more information, see “Item 10. Additional Information – B. Memorandum and Articles of Association”); and | ||
• | third, as may be determined in the ordinary annual shareholders’ meeting by the vote of the holders of a majority of the shares entitled to vote, upon the recommendation of the board of directors, and may, subject to further reserves required by Bancolombia’s by-laws, be distributed as a dividend. |
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Dividends declared with respect to net | Cash Dividends | Cash Dividends | ||||||
Income earned in: | per share(1)(2) | per share(1)(3) | ||||||
(Ps) | (U.S. dollars) | |||||||
2004 | 376 | 0.159 | ||||||
2005 | 508 | 0.222 | ||||||
2006 | 532 | 0.243 | ||||||
2007 | 568 | 0.310 | ||||||
2008 | 624 | 0.245 |
(1) | Includes common shares and preferred shares. | |
(2) | Cash dividends for 2004 2005, 2006 and 2007 were paid in quarterly installments and cash dividends for 2008 will be paid in quarterly installments, since April 2009 to January 2010. | |
(3) | Amounts have been translated from pesos at the Representative Market Rate in effect at the end of the month in which the dividends were declared (February or March, as applicable). |
Colombia Stock Exchange | New York Stock Exchange | |||||||||||||||||||
Ps Per Preferred Share | US$ per ADS | Trading Volume | ||||||||||||||||||
High | Low | High | Low | (Number of ADSs) | ||||||||||||||||
Year Ending | ||||||||||||||||||||
December 31, 2003 | 3,800 | 1,750 | 5.35 | 2.32 | 9,789,400 | |||||||||||||||
December 31, 2004 | 9,030 | 3,839 | 14.12 | 5.30 | 31,487,800 | |||||||||||||||
December 31, 2005 | 17,000 | 7,670 | 29.25 | 12.40 | 81,772,000 | |||||||||||||||
December 31, 2006 | 20,700 | 12,980 | 36.18 | 20.00 | 97,287,628 | |||||||||||||||
December 31, 2007 | 19,360 | 13,200 | 39.00 | 24.00 | 129,408,200 | |||||||||||||||
December 31, 2008 | 18,960 | 9,300 | 44.00 | 15.00 | 135,084,078 |
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Colombia Stock Exchange | New York Stock Exchange | |||||||||||||||||||||||
Trading | ||||||||||||||||||||||||
Ps Per Preferred | Volume | |||||||||||||||||||||||
Shares | (Number of | US$ per ADS | Trading Volume | |||||||||||||||||||||
High | Low | Shares) | High | Low | (Number of ADSs) | |||||||||||||||||||
(in nominal pesos) | ||||||||||||||||||||||||
2007 | ||||||||||||||||||||||||
First quarter | 17,800 | 14,680 | 10,694,697 | 32.00 | 24.00 | 17,335,920 | ||||||||||||||||||
Second quarter | 15,584 | 13,320 | 19,721,707 | 35.00 | 26.15 | 33,393,208 | ||||||||||||||||||
Third quarter | 17,940 | 14,980 | 31,476,408 | 37.33 | 28.42 | 48,418,900 | ||||||||||||||||||
Fourth quarter | 19,360 | 16,680 | 23,190,999 | 39.00 | 32.88 | 32,705,772 | ||||||||||||||||||
2008 | ||||||||||||||||||||||||
First quarter | 17,800 | 13,800 | 15,322,243 | 36.15 | 28.30 | 32,658,916 | ||||||||||||||||||
Second quarter | 18,960 | 14,200 | 19,692,336 | 44.00 | 31.11 | 33,723,007 | ||||||||||||||||||
Third quarter | 18,000 | 12,700 | 19,660,860 | 36.30 | 25.36 | 33,308,846 | ||||||||||||||||||
Fourth quarter | 16,520 | 9,300 | 59,706,668 | 29.88 | 15.00 | 35,393,309 | ||||||||||||||||||
2009 | ||||||||||||||||||||||||
First quarter | 13,160 | 10,500 | 62,193,123 | 24.33 | 15.90 | 32,044,861 |
Colombia Stock Exchange | New York Stock Exchange | |||||||||||||||||||
Ps Per Preferred Share | US$ per ADS | Trading Volume | ||||||||||||||||||
High | Low | High | Low | (Number of ADSs) | ||||||||||||||||
Month | ||||||||||||||||||||
December 2008 | 13,640 | 11,380 | 25.00 | 19.44 | 10,580,055 | |||||||||||||||
January 2009 | 13,160 | 11,240 | 24.33 | 20.36 | 9,296,455 | |||||||||||||||
February 2009 | 12,700 | 10,500 | 21.20 | 15.90 | 13,321,611 | |||||||||||||||
March 2009 | 12,600 | 10,580 | 22.23 | 16.16 | 10,136,611 | |||||||||||||||
April 2009 | 13,800 | 12,160 | 23.75 | 18.96 | 12,365,403 | |||||||||||||||
May 2009 | 16,000 | 13,500 | 29.85 | 22.90 | 9,833,569 | |||||||||||||||
June 2009(1) | 16,500 | 15,520 | 32.19 | 29.13 | 8,042,278 |
(1) | Figures are as of June 24; 2009. |
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• | to consider the approval of Bancolombia’s annual report, including the financial statements for the preceding fiscal year; | ||
• | to review the annual report prepared by the external auditor; | ||
• | to determine the compensation for the members of the board of directors, the external auditor and the client representative (“defensor del cliente”). The client representative acts as spokesman of the clients and users before the Bank, his primary duty is to objectively solve, free of charge and within the terms established by law, the individual complaints submitted by clients. |
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• | to elect directors, the client representative and the external auditor (each for a two-year term); and | ||
• | to determine the dividend policy and the allocation of profits, if any, of the preceding fiscal year, as well as any retained earnings from previous fiscal years. |
• | An employee or director of the issuer or any of its parent or subsidiary companies, including all those persons acting in said capacity during the year immediately preceding that in which they were appointed, except in the case of an independent member of the board of directors being re-elected. | ||
• | Shareholders, who either directly or by virtue of an agreement direct, guide or control the majority of the entity’s voting rights or who determine the majority composition of the administrative, directing or controlling bodies of this same entity. | ||
• | A partner or employee of any association or firm that provides advisory or consultancy services to the issuer or to companies who belong to the same economic group to which the issuer in question belongs, in the event that income obtained from such services represent for said association or firm twenty per cent (20%) or more of its total operating income. | ||
• | An employee or director of a foundation, association or institution that receives significant donations from the issuer. The term “significant donations” is quantified as being twenty per cent (20%) or more of the total amount of donations received by the respective institution. | ||
• | An administrator of any entity on whose board of directors a legal representative of the issuer participates. | ||
• | Any person who receives from the issuer any kind of remuneration different from fees as a member of the board of directors, of the audit committee or any other committee set up by the board of directors. |
• | each holder of common shares is entitled at the annual general shareholders’ meeting to nominate for election of one or more directors; | ||
• | each nomination of one or more directors constitutes a group for the purposes of the election; | ||
• | each group of nominees must contain a hierarchy as to the order of preference for nominees in that group to be elected; |
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• | once all groups have been nominated, holders of common shares may cast one vote for each common share held in favor of a particular group of nominees. Votes may not be cast for particular nominees in a group; they may be cast only for the entire group; | ||
• | the total number of votes casted in the election is divided by the number of directors to be elected. The resulting quotient is the quota of votes necessary to elect particular directors. For each time that the number of votes cast for a group of nominees is divisible by the quota of votes, one nominee from that group is elected, in the order of the hierarchy of that group; and | ||
• | when no group has enough remaining votes to satisfy the quota of votes necessary to elect a director, any remaining board seat or seats are filled by electing the highest remaining nominee from the group with the highest number of remaining votes cast until all available seats have been filled. |
• | a favorable vote of at least 70% of the shares represented at a general shareholders’ meeting is required to approve the issuance of stock without granting a preemptive right in respect of that stock in favor of the shareholders; | ||
• | a favorable vote of at least 78% of the holders of common shares present to decide not to distribute as dividend at least 50% of the annual net profits of any given fiscal year as required by Colombian law; | ||
• | a favorable vote of at least 80% of the holders of common shares and 80% of the holders of subscribed preferred shares to approve the payment of a stock dividend; and | ||
• | a favorable vote of at least 70% of the holders of common shares and of subscribed preferred shares to effect a decision to impair the conditions or rights established for such preferred shares, or a decision to convert those preferred shares into common shares. |
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• | In the event that changes in the Bank’s by-laws may impair the conditions or rights assigned to such shares and when the conversion of such shares into common shares is to be approved. | ||
• | When voting the anticipated dissolution, merger or transformation of the corporation or change of its corporate purpose. | ||
• | When the preferred dividend has not been fully paid during two consecutive annual terms. In this event, holders of such shares shall retain their voting rights until the corresponding accrued dividends have been fully paid to them. | ||
• | When the general shareholders’ meeting orders the payment of dividends with issued shares of the Bank. | ||
• | If at the end of a fiscal period, the Bank’s profits are not enough to pay the minimum dividend and the Superintendency of Finance, by its own decision or upon petition of holders of at least ten percent (10%) of preferred shares, determines that benefits were concealed or shareholders were misled with regard to benefits received from the Bank by the Bank’s directors or officers decreasing the profits to be distributed, the Superintendency of Finance may resolve that holders of preferred shares should participate with speaking and voting rights at the general shareholders’ meeting, in the terms established by law. | ||
• | When the registration of shares at the Colombian Stock Exchange or at the National Register of Securities and Issuers which is a registry kept by the Superintendency of Finance, is suspended or canceled. In this event, voting rights shall be maintained until the irregularities that resulted in such cancellation or suspension are resolved. |
• | the date of the meeting; | ||
• | a description of any resolution to be proposed for adoption at the meeting on which the holders of preferred shares are entitled to vote; and | ||
• | instructions for the delivery of proxies. |
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• | first, an amount equivalent to 10% of net profits is segregated to build a legal reserve until that reserve is equal to at least 50% of Bancolombia’s paid-in capital; | ||
• | second, payment of the minimum dividend on the preferred shares; and | ||
• | third, allocation of the balance of the net profits is determined by the holders of a majority of the common shares entitled to vote on the recommendation of the board of directors and the President and may, subject to further reserves required by the by-laws, be distributed as dividends. |
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• | its term of existence, as stated in the by-laws, expires without being extended by the shareholders prior to its expiration date; | ||
• | losses cause the decrease of its shareholders’ equity below 50% of its outstanding capital stock, unless one or more of the corrective measures described in the Colombian Commerce Code are adopted by the shareholders within six months; | ||
• | by decision at the general shareholders’ meeting. | ||
• | in certain other events expressly provided by law and in the by-laws. |
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• | Bancolombia has no liabilities; |
• | Bancolombia’s creditors consent in writing; or |
• | the outstanding capital stock remaining after the reduction represents at least twice the amount of Bancolombia’s liabilities. |
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• | a dealer in securities; |
• | a trader in securities that elects to use a mark-to-market method of accounting for securities holdings; |
• | a tax-exempt organization; |
• | a life insurance company; |
• | a person liable for alternative minimum tax; |
• | a person that actually or constructively owns 10% or more of the Bank’s voting stock; |
• | a person that holds preferred shares or ADSs as part of a straddle or a hedging or conversion transaction; or |
• | a person whose functional currency is not the U.S. dollar. |
• | a citizen or resident of the United States; |
• | a domestic corporation; |
• | an estate whose income is subject to United States federal income tax regardless of its source; or |
• | a trust if a United States court can exercise primary supervision over the trust’s administration and one or more United States persons are authorized to control all substantial decisions of the trust. |
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• | at least 75% of the Bank’s gross income for the taxable year is passive income; or |
• | at least 50% of the value, determined on the basis of a quarterly average, of the Bank’s assets is attributable to assets that produce or are held for the production of passive income. |
• | any gain you realize on the sale or other disposition of your preferred shares or ADSs; and |
• | any excess distribution that the Bank makes to you (generally, any distributions to you during a single taxable year that are greater than 125% of the average annual distributions received by you in respect of the preferred shares or ADSs during the three preceding taxable years or, if shorter, your holding period for the preferred shares or ADSs). |
• | the gain or excess distribution will be allocated ratably over your holding period for the preferred shares or ADSs, |
• | the amount allocated to the taxable year in which you realized the gain or excess distribution will be taxed as ordinary income; |
• | the amount allocated to each prior year, with certain exceptions, will be taxed at the highest tax rate in effect for that year; and |
• | the interest charge generally applicable to underpayments of tax will be imposed in respect of the tax attributable to each such year. |
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• | interest rate risks relating to local currency, foreign currency and UVR; |
• | currency risk |
• | stock price risk; and |
• | fund risk. |
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Modified Duration | Interest rate Fluctuations (basis points) | |||||||||||||||||||||||
Zone | Band | Low | High | Pesos | UVR | USD | ||||||||||||||||||
Zone 1 | 1 | 0 | 0.08 | 221 | 221 | 100 | ||||||||||||||||||
2 | 0.08 | 0.5 | 221 | 221 | 100 | |||||||||||||||||||
3 | 0.25 | 0.5 | 221 | 221 | 100 | |||||||||||||||||||
4 | 0.5 | 1 | 221 | 221 | 100 | |||||||||||||||||||
Zona 2 | 5 | 1 | 1.9 | 206 | 208 | 90 | ||||||||||||||||||
6 | 1.9 | 2.8 | 190 | 195 | 80 | |||||||||||||||||||
7 | 2.8 | 3.6 | 175 | 182 | 75 | |||||||||||||||||||
Zona 3 | 8 | 3.6 | 4.3 | 159 | 168 | 75 | ||||||||||||||||||
9 | 4.3 | 5.7 | 144 | 155 | 70 | |||||||||||||||||||
10 | 5.7 | 7.3 | 128 | 142 | 65 | |||||||||||||||||||
11 | 7.3 | 9.3 | 118 | 142 | 60 | |||||||||||||||||||
12 | 9.3 | 12 | 118 | 142 | 60 | |||||||||||||||||||
13 | 10.6 | 20 | 118 | 142 | 60 | |||||||||||||||||||
14 | 12 | 118 | 142 | 60 | ||||||||||||||||||||
15 | 20 | 118 | 142 | 60 | ||||||||||||||||||||
USD | 4.4 | % | ||
Euro | 6.0 | % | ||
Other currencies | 8.0 | % | ||
Funds | 14.7 | % | ||
Stock Price | 14.7 | % |
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31/12/2007 | 31/12/2008 | |||||||
Interest Rate Risk VaR | 159,444 | 134,077 | ||||||
Currency Risk VaR | 5,689 | 27,056 | ||||||
Equity Risk VaR | 40,910 | 38,924 | ||||||
Fund Risk VaR | 4,768 | 47,904 | ||||||
Total VaR | 210,811 | 248,062 | ||||||
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FAIR VALUE: Sum of the original net present value. | ||||
+ 50 bps: Net present’s value change with an increase of 50 bps. | ||||
+ 100 bps: Net present’s value change with an increase of 100 bps. |
2007
FAIR VALUE | +50bps | +100bps | ||||||||||
Assets | ||||||||||||
Held To Maturity Securities | 1,662,108 | (22,521 | ) | (44,939 | ) | |||||||
Loans | 38,324,676 | (120,644 | ) | (240,740 | ) | |||||||
Customer’s acceptances | 12,957 | (6 | ) | (11 | ) | |||||||
Total interest rate sensitive assets | 39,999,741 | (143,170 | ) | (285,690 | ) |
FAIR VALUE | +50bps | +100bps | ||||||||||
Liabilities | ||||||||||||
Checking Accounts — Saving Deposits | 19,063,969 | (67,943 | ) | (135,577 | ) | |||||||
Time Deposits | 14,791,980 | (29,189 | ) | (58,245 | ) | |||||||
Bank acceptances outstandings | 12,957 | (6 | ) | (11 | ) | |||||||
Interbank borrowings | 4,792,533 | (5,521 | ) | (11,016 | ) | |||||||
Long-term debt | 2,778,855 | (32,746 | ) | (65,343 | ) | |||||||
Total interest rate sensitive liabilities | 41,440,295 | (135,404 | ) | (270,191 | ) | |||||||
Total net change | (7,767 | ) | (15,498 | ) |
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2008
FAIR VALUE | +50bps | +100bps | ||||||||||
Assets | ||||||||||||
Held To Maturity Securities | 2,403,824 | (24,437 | ) | (48,763 | ) | |||||||
Loans | 46,108,840 | (157,444 | ) | (314,172 | ) | |||||||
Total interest rate sensitive assets | 48,512,803 | (181,881 | ) | (362,934 | ) |
FAIR VALUE | +50bps | +100bps | ||||||||||
Liabilities | ||||||||||||
Checking Accounts — Saving Deposits | 20,799,643 | (67,807 | ) | (135,306 | ) | |||||||
Time Deposits | 18,912,528 | (34,385 | ) | (68,615 | ) | |||||||
Interbank borrowings | 6,024,932 | (8,181 | ) | (16,324 | ) | |||||||
Long-term debt | 3,587,526 | (30,472 | ) | (60,806 | ) | |||||||
Convertible Bonds | 5,877 | (15 | ) | (29 | ) | |||||||
Total interest rate sensitive liabilities | 49,330,505 | (140,860 | ) | (281,079 | ) | |||||||
Total net change | (41,021 | ) | (81,855 | ) |
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• | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Bank; |
• | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Bank are being made only in accordance with authorizations of the Bank’s management and directors; and |
• | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Bank’s assets that could have a material effect on the financial statements. |
154
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155
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156
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• | Independence of Directors.Under NYSE corporate governance rules, a majority of a U.S. company’s board of directors must be composed of independent directors. Law 964 of 2005 requires that at least 25% of the members of the Bank’s board of directors are independent directors, and Decree 3923 of 2006 regulates their election. Additionally, Colombian law mandates that all directors exercise independent judgment under all circumstances. Bancolombia’s Corporate Governance Code includes a provision stating that directors shall exercise independent judgment and requires that Bancolombia’s management recommends to its shareholders lists of director nominees of which at least 25% are independent directors. For the independence test applicable to directors of Bancolombia see “Item 10. Additional Information. — B. Memorandum and Articles of Association — Board of Directors”. |
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• | Non-Executive Director Meetings.Pursuant to the NYSE listing standards, non-executive directors of U.S. listed companies must meet on a regular basis without management present. The non-executive directors of Bancolombia do not meet formally without management present. There is no prohibition under Colombian regulations for officers to be members of the board of directors, however it is customary for Colombian companies to maintain separation between the directors and management. Bancolombia’s board of directors does not include any management members, however the CEO attends the monthly meetings of the Bank’s board of directors (but is not allowed to vote) and committees may have officers or employees as permanent members to guarantee an adequate flow of information between employees, management and directors. In accordance with the Law 964 of 2005 and the Bank’s by-laws, no executive officer can be elected as chairman of the Bank’s board of directors. |
• | Committees of the Board of Directors.Under NYSE listing standards, all U.S. companies listed on the NYSE must have an audit committee, a compensation committee, and a nominating/corporate governance committee and all members of such committees must be independent. In each case, the independence of directors must be established pursuant to highly detailed rules promulgated by the NYSE and, in the case of the audit committee, the NYSE and the SEC. The Bank’s board of directors has a “Board Issues Committee”, a “Designation, Compensation and Development Committee”, a “Corporate Governance Committee” and an “Audit Committee”, each of which is composed of both directors and officers, except the audit committee which is composed by three directors but no officers. These committees have their own charters which address various corporate governance subjects, in accordance with NYSE Corporate Governance Standards. Bancolombia’s audit committee complies with NYSE Corporate Governance Standards applicable to foreign private issuers. For a description of these committees see “Item 6. Directors, Senior Management and Employees — C. Board Practices”. |
• | Shareholder Approval of Equity Compensation Plans. Under NYSE listing standards, shareholders of U.S. companies must be given the opportunity to vote on all equity compensation plans and to approve material revisions to those plans, with limited exceptions set forth in the NYSE rules. Under Colombian laws applicable to Bancolombia, such approval from shareholders is also required. |
• | Shareholder Approval of Dividends. While NYSE corporate governance standards do not require listed companies to have shareholders approve or declare dividends, in accordance with the Colombian Code of Commerce, annual dividends must be approved by Bancolombia’s shareholders. |
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1.(1) | English Translation of Corporate by-laws (estatutos sociales) of the registrant, as amended on March 01, 2007. | |
2(3) | The Deposit Agreement entered into between Bancolombia and The Bank of New York, as amended on January 14, 2008. | |
4.1. | English Summary of the Stock Purchase Agreement entered into between Bancolombia S.A., the other shareholders named therein and Stratton Spain S.L. on June 6, 2008. | |
7 | Selected Ratios’ Calculation | |
8.1 | List of Subsidiaries | |
11(2) | English translation of the Ethics Code of the registrant, as amended on June 23, 2008. | |
12.1 | CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated June 30, 2009. | |
12.2 | CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated June 30, 2009. | |
13.1 | CEO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated June 30, 2009. | |
13.2 | CFO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated June 30, 2009. | |
15.(a)(2) | English Translation of Corporate Governance Code (Código de Buen Gobierno) of the registrant, as amended on June 23, 2008. |
(1) | Incorporated by reference to the Bank’s Annual Report on Form 20-F for the year ended December 31, 2006 filed on May 10, 2007. | |
(2) | Incorporated by reference to the Bank’s Annual Report on Form 20-F for the year ended December 31, 2007 filed on July 8, 2008. | |
(3) | Incorporated by reference to the Registration Statement in Form F-6, filed by Bancolombia on January 14, 2008. |
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By: | /s/JAIME ALBERTO VELÁSQUEZ BOTERO Name: Jaime Alberto Velásquez Botero. Title: Vice President, Finance. |
Table of Contents
Page | ||
Reports of Independent Registered Public Accounting Firms | F-2 | |
F-6 | ||
F-8 | ||
F-10 | ||
F-11 | ||
F-13 | ||
Table of Contents
F-2
Table of Contents
June 29, 2009
Medellin, Colombia
June 30, 2009
F-3
Table of Contents
Edificio Corficolombiana
Calle 16 Sur No 43 A-49 Pisos 9 y 10
A.A 404
Nit 860.005.813-4
Medellin
Colombia
Fax: 57(4) 313 93 43
www.deloitte.com/co
Medellin, Colombia
F-4
Table of Contents
June 26, 2009
Panamá, Republic of Panama
F-5
Table of Contents
2008(1) | ||||||||||||||||
Notes | 2007 | 2008 | (Unaudited) | |||||||||||||
U.S. Dollar | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash and due from banks | 4 | Ps | 3,618,619 | Ps | 3,870,927 | US$ | 1,725,328 | |||||||||
Overnight funds | 1,609,768 | 1,748,648 | 779,397 | |||||||||||||
Total cash and cash equivalents | 5,228,387 | 5,619,575 | 2,504,725 | |||||||||||||
Investment securities: | 5 | |||||||||||||||
Debt securities: | 5,596,051 | 6,840,596 | 3,048,951 | |||||||||||||
Trading | 1,916,012 | 2,385,564 | 1,063,279 | |||||||||||||
Available for sale | 1,954,593 | 2,000,588 | 891,691 | |||||||||||||
Held to maturity | 1,725,446 | 2,454,444 | 1,093,981 | |||||||||||||
Equity securities: | 253,747 | 503,861 | 224,578 | |||||||||||||
Trading | 93,125 | 331,398 | 147,709 | |||||||||||||
Available for sale | 160,622 | 172,463 | 76,869 | |||||||||||||
Allowance | (75,547 | ) | (66,181 | ) | (29,498 | ) | ||||||||||
Total investment securities, net | 5,774,251 | 7,278,276 | 3,244,031 | |||||||||||||
Loans and financial leases: | 6 | |||||||||||||||
Commercial loans | 23,397,058 | 28,068,731 | 12,510,633 | |||||||||||||
Consumer loans | 6,593,211 | 7,532,649 | 3,357,409 | |||||||||||||
Small business loans | 129,900 | 143,122 | 63,792 | |||||||||||||
Mortgage loans | 2,883,628 | 3,391,326 | 1,511,562 | |||||||||||||
Financial leases | 4,698,827 | 5,506,742 | 2,454,433 | |||||||||||||
Allowance for loans and financial leases losses | 7 | (1,457,151 | ) | (2,134,360 | ) | (951,315 | ) | |||||||||
Total loans and financial leases, net | 36,245,473 | 42,508,210 | 18,946,514 | |||||||||||||
Accrued interest receivable on loans and financial leases: | ||||||||||||||||
Accrued interest receivable on loans and financial leases | 431,863 | 559,981 | 249,592 | |||||||||||||
Allowance for accrued interest losses | 7 | (33,303 | ) | (54,323 | ) | (24,213 | ) | |||||||||
Total interest accrued, net | 398,560 | 505,658 | 225,379 | |||||||||||||
Customers’ acceptances and derivatives | 8 | 196,001 | 272,458 | 121,438 | ||||||||||||
Accounts receivable, net | 9 | 716,106 | 828,817 | 369,416 | ||||||||||||
Property, plant and equipment, net | 10 | 855,818 | 1,171,117 | 521,984 | ||||||||||||
Operating leases, net | 11 | 488,333 | 726,262 | 323,705 | ||||||||||||
Foreclosed assets, net | 15 | 32,294 | 24,653 | 10,988 | ||||||||||||
Prepaid expenses and deferred charges | 12 | 137,901 | 132,881 | 59,227 | ||||||||||||
Goodwill | 14 | 977,095 | 1,008,639 | 449,565 | ||||||||||||
Other assets, net | 13 | 580,642 | 1,093,850 | 487,544 | ||||||||||||
Reappraisal of assets | 16 | 520,788 | 612,683 | 273,082 | ||||||||||||
Total assets | Ps | 52,151,649 | Ps | 61,783,079 | US$ | 27,537,598 | ||||||||||
Memorandum accounts | 25 | Ps | 182,209,139 | Ps | 219,171,533 | US$ | 97,687,872 | |||||||||
F-6
Table of Contents
2008(1) | ||||||||||||||||
Notes | 2007 | 2008 | (Unaudited) | |||||||||||||
U.S. Dollar | ||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||
Deposits | ||||||||||||||||
Non-interest bearing: | Ps | 5,804,724 | Ps | 5,723,460 | US$ | 2,551,028 | ||||||||||
Checking accounts | 5,300,864 | 5,289,918 | 2,357,792 | |||||||||||||
Other | 503,860 | 433,542 | 193,236 | |||||||||||||
Interest bearing: | 28,569,426 | 34,660,940 | 15,448,874 | |||||||||||||
Checking accounts | 1,567,411 | 2,011,132 | 896,390 | |||||||||||||
Time deposits | 14,304,727 | 18,652,738 | 8,313,791 | |||||||||||||
Savings deposits | 12,697,288 | 13,997,070 | 6,238,693 | |||||||||||||
Total deposits | 34,374,150 | 40,384,400 | 17,999,902 | |||||||||||||
Overnight funds | 2,005,490 | 2,564,208 | 1,142,904 | |||||||||||||
Bank acceptances outstanding | 55,208 | 56,935 | 25,377 | |||||||||||||
Interbank borrowings | 17 | 1,506,611 | 2,077,291 | 925,878 | ||||||||||||
Borrowings from development and other domestic banks | 18 | 3,344,635 | 3,870,634 | 1,725,197 | ||||||||||||
Accounts payable | 1,714,418 | 1,688,402 | 752,545 | |||||||||||||
Accrued interest payable | 286,627 | 400,902 | 178,688 | |||||||||||||
Other liabilities | 19 | 503,433 | 589,501 | 262,749 | ||||||||||||
Long-term debt | 20 | 2,850,730 | 3,643,486 | 1,623,953 | ||||||||||||
Accrued expenses | 21 | 218,860 | 255,183 | 113,739 | ||||||||||||
Minority interest | 92,217 | 135,292 | 60,301 | |||||||||||||
Total liabilities | 46,952,379 | 55,666,234 | 24,811,233 | |||||||||||||
Stockholders’ equity | 22, 24 | |||||||||||||||
Subscribed and paid in capital: | 460,684 | 460,684 | 205,334 | |||||||||||||
Nonvoting preferred shares | 151,422 | 151,422 | 67,492 | |||||||||||||
Common shares | 309,262 | 309,262 | 137,842 | |||||||||||||
Retained earnings: | 4,446,527 | 5,265,664 | 2,346,981 | |||||||||||||
Appropriated | 23 | 3,359,604 | 3,975,021 | 1,771,723 | ||||||||||||
Unappropriated | 1,086,923 | 1,290,643 | 575,258 | |||||||||||||
Reappraisal of assets | 16 | 319,646 | 448,511 | 199,908 | ||||||||||||
Gross unrealized net loss on investments | (27,587 | ) | (58,014 | ) | (25,858 | ) | ||||||||||
Total stockholders’ equity | 5,199,270 | 6,116,845 | 2,726,365 | |||||||||||||
Total liabilities and stockholders’ equity | Ps | 52,151,649 | Ps | 61,783,079 | US$ | 27,537,598 | ||||||||||
Memorandum accounts | 25 | Ps | 182,209,139 | Ps | 219,171,533 | US$ | 97,687,872 | |||||||||
(1) | See note 2 (c). |
F-7
Table of Contents
Note | 2006 | 2007(2) | 2008 | 2008(1) (Unaudited) | ||||||||||||||||
U.S. Dollar | ||||||||||||||||||||
Interest income: | ||||||||||||||||||||
Loans | Ps | 2,312,525 | Ps | 3,707,751 | Ps | 4,999,520 | US$ | 2,228,358 | ||||||||||||
Investment securities | 273,197 | 416,644 | 431,589 | 192,365 | ||||||||||||||||
Overnight funds | 43,863 | 115,324 | 106,208 | 47,338 | ||||||||||||||||
Financial leases | 384,147 | 570,689 | 776,426 | 346,064 | ||||||||||||||||
Total interest income | 3,013,732 | 4,810,408 | 6,313,743 | 2,814,125 | ||||||||||||||||
Interest expense: | ||||||||||||||||||||
Checking accounts | 32,676 | 39,076 | 39,257 | 17,497 | ||||||||||||||||
Time deposits | 459,513 | 816,688 | 1,256,742 | 560,148 | ||||||||||||||||
Saving deposits | 264,381 | 461,437 | 589,718 | 262,846 | ||||||||||||||||
Total interest expense on deposits | 756,570 | 1,317,201 | 1,885,717 | 840,491 | ||||||||||||||||
Interbank borrowings | 94,872 | 109,843 | 74,792 | 33,335 | ||||||||||||||||
Borrowings from development and other domestic banks | 180,507 | 274,484 | 344,900 | 153,727 | ||||||||||||||||
Overnight funds | 100,876 | 131,127 | 166,129 | 74,046 | ||||||||||||||||
Long-term debt | 113,404 | 169,435 | 281,803 | 125,604 | ||||||||||||||||
Total interest expense | 1,246,229 | 2,002,090 | 2,753,341 | 1,227,203 | ||||||||||||||||
Net interest income | 1,767,503 | 2,808,318 | 3,560,402 | 1,586,922 | ||||||||||||||||
Provision for loan, accrued interest losses and other receivables, net | 7 | (266,107 | ) | (707,865 | ) | (1,263,405 | ) | (563,118 | ) | |||||||||||
Recovery of charged-off loans | 70,746 | 89,997 | 108,143 | 48,201 | ||||||||||||||||
Provision for foreclosed assets and other assets | (44,353 | ) | (60,531 | ) | (46,297 | ) | (20,635 | ) | ||||||||||||
Recovery of provisions for foreclosed assets and other assets | 89,532 | 81,364 | 68,392 | 30,483 | ||||||||||||||||
Total net provisions | (150,182 | ) | (597,035 | ) | (1,133,167 | ) | (505,069 | ) | ||||||||||||
Net interest income after provisions for loans and accrued interest losses | 1,617,321 | 2,211,283 | 2,427,235 | 1,081,853 | ||||||||||||||||
Fees and other services income: | ||||||||||||||||||||
Commissions from banking services | 162,273 | 279,528 | 238,918 | 106,489 | ||||||||||||||||
Electronic services and ATMs fees | 85,049 | 80,711 | 86,070 | 38,363 | ||||||||||||||||
Branch network services | 62,403 | 104,601 | 104,010 | 46,359 | ||||||||||||||||
Collections and payments fees | 74,708 | 130,421 | 157,281 | 70,102 | ||||||||||||||||
Credit card merchant fees | 8,150 | 39,191 | 32,215 | 14,359 | ||||||||||||||||
Credit and debit card annual fees | 238,898 | 293,583 | 446,647 | 199,077 | ||||||||||||||||
Checking fees | 60,083 | 67,438 | 67,963 | 30,292 | ||||||||||||||||
Warehouse services | 72,494 | — | — | — | ||||||||||||||||
Fiduciary activities | 62,114 | 69,200 | 98,799 | 44,036 | ||||||||||||||||
Pension Plan Administration | — | 82,453 | 87,826 | 39,145 | ||||||||||||||||
Brokerage fees | 67,034 | 62,493 | 54,742 | 24,399 | ||||||||||||||||
Check remittance | 11,040 | 22,762 | 26,148 | 11,655 | ||||||||||||||||
International operations | 34,281 | 43,643 | 47,962 | 21,377 | ||||||||||||||||
F-8
Table of Contents
Note | 2006 | 2007(2) | 2008 | 2008(1) (Unaudited) | ||||||||||||||||
U.S. Dollar | ||||||||||||||||||||
Total fees and other service income | Ps | 938,527 | Ps | 1,276,024 | Ps | 1,448,581 | US$ | 645,653 | ||||||||||||
Fees and other service expenses | (70,866 | ) | (116,453 | ) | (134,939 | ) | (60,144 | ) | ||||||||||||
Total fees and income from services, net | 867,661 | 1,159,571 | 1,313,642 | 585,509 | ||||||||||||||||
Other operating income: | ||||||||||||||||||||
Foreign exchange gains, net | 58,008 | 27,584 | 113,584 | 50,626 | ||||||||||||||||
Forward contracts in foreign currency | 45,073 | 141,930 | 142,431 | 63,484 | ||||||||||||||||
Gains (losses) on sales of investments on equity securities | 75,697 | (15,034 | ) | 92,125 | 41,061 | |||||||||||||||
Gains on sale of mortgage loans | 14,371 | 50,377 | 41,080 | 18,310 | ||||||||||||||||
Dividend income | 21,199 | 18,968 | 39,586 | 17,644 | ||||||||||||||||
Revenues from commercial subsidiaries | 40,323 | 101,148 | 101,730 | 45,343 | ||||||||||||||||
Insurance income | — | 8,013 | 13,948 | 6,217 | ||||||||||||||||
Communication, postage, rent and others | 16,762 | 17,572 | 105,958 | 47,226 | ||||||||||||||||
Total other operating income | 271,433 | 350,558 | 650,442 | 289,911 | ||||||||||||||||
Total operating income | 2,756,415 | 3,721,412 | 4,391,319 | 1,957,273 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Salaries and employee benefits | 690,117 | 835,150 | 928,997 | 414,067 | ||||||||||||||||
Bonus plan payments | 35,771 | 84,226 | 125,393 | 55,889 | ||||||||||||||||
Compensation | 6,375 | 23,463 | 23,539 | 10,492 | ||||||||||||||||
Administrative and other expenses | 27 | 882,182 | 1,070,845 | 1,268,982 | 565,603 | |||||||||||||||
Deposit security, net | 67,813 | 49,113 | 52,151 | 23,244 | ||||||||||||||||
Donation expenses | 22,596 | 15,375 | 26,653 | 11,880 | ||||||||||||||||
Depreciation | 10 | 104,553 | 122,835 | 141,133 | 62,905 | |||||||||||||||
Merger expenses | 35,779 | — | — | — | ||||||||||||||||
Goodwill amortization | 25,814 | 70,411 | 73,149 | 32,604 | ||||||||||||||||
Total operating expenses | 1,871,000 | 2,271,418 | 2,639,997 | 1,176,684 | ||||||||||||||||
Net operating income | 885,415 | 1,449,994 | 1,751,322 | 780,589 | ||||||||||||||||
Non-operating income: | ||||||||||||||||||||
Other income | 194,589 | 93,294 | 172,550 | 76,909 | ||||||||||||||||
Minority interest | (6,352 | ) | (13,246 | ) | (18,511 | ) | (8,251 | ) | ||||||||||||
Other expense | (149,243 | ) | (81,236 | ) | (140,662 | ) | (62,695 | ) | ||||||||||||
Total non-operating (expense) income | 28 | 38,994 | (1,188 | ) | 13,377 | 5,963 | ||||||||||||||
Income before income taxes | 924,409 | 1,448,806 | 1,764,699 | 786,552 | ||||||||||||||||
Income tax expense | 21 | (174,880 | ) | (361,883 | ) | (474,056 | ) | (211,294 | ) | |||||||||||
Net income | Ps | 749,529 | Ps | 1,086,923 | Ps | 1,290,643 | US$ | 575,258 | ||||||||||||
Earnings per share | Ps | 1,030 | Ps | 1,433 | Ps | 1,638 | US$ | 0.73 | ||||||||||||
(1) | See Note 2 (c). | |
(2) | The consolidated statement of operations for the year 2007 was modified to reflect certain reclassifications made in commissions from banking services and other services, administrative and other expenses and other income that conform to the presentation of 2008 figures, in order to provide a better basis of comparison with respect to 2008 figures regarding the gains on the sale of mortgage loans. No such changes were made for 2006, as the reclassifications would not have a material impact on the figures for that period, and accordingly, would not be material for comparative purposes. |
F-9
Table of Contents
Non Voting Preferred Shares | Voting Common Shares | Retained Earnings | Surplus | Total | ||||||||||||||||||||||||||||||||
Gross unrealized | ||||||||||||||||||||||||||||||||||||
gain or loss on | ||||||||||||||||||||||||||||||||||||
Appro- | Unappro- | Reappraisal | investments | Stockholders' | ||||||||||||||||||||||||||||||||
Number | Par Value | Number | Par Value | priated | priated | of assets | available for sale | equity | ||||||||||||||||||||||||||||
Balance at December 31, 2005 | 218,122,421 | Ps | 121,422 | 509,704,584 | Ps | 309,262 | Ps | 1,765,998 | Ps | 946,881 | Ps | 110,479 | Ps | 123,248 | Ps | 3,377,290 | ||||||||||||||||||||
Net income | — | — | — | — | — | 749,529 | — | — | 749,529 | |||||||||||||||||||||||||||
Transfer to appropriated retained earnings | — | — | — | — | 946,881 | (946,881 | ) | — | — | — | ||||||||||||||||||||||||||
Valuation of investments | — | — | — | — | — | 30,214 | (111,149 | ) | (80,935 | ) | ||||||||||||||||||||||||||
Dividends declared | — | — | — | — | (369,736 | ) | — | — | — | (369,736 | ) | |||||||||||||||||||||||||
Other | — | — | — | — | (29,536 | ) | — | — | — | (29,536 | ) | |||||||||||||||||||||||||
Balance at December 31, 2006 | 218,122,421 | 121,422 | 509,704,584 | 309,262 | 2,313,607 | 749,529 | 140,693 | 12,099 | 3,646,612 | |||||||||||||||||||||||||||
Net income | — | — | — | — | — | 1,086,923 | — | — | 1,086,923 | |||||||||||||||||||||||||||
Transfer to appropriated retained earnings | — | — | — | — | 749,529 | (749,529 | ) | — | — | — | ||||||||||||||||||||||||||
Issuance of preferred and common shares | 59,999,998 | 30,000 | — | — | 897,612 | — | — | — | 927,612 | |||||||||||||||||||||||||||
Valuation of investments | — | — | — | — | — | 178,953 | (39,686 | ) | 139,267 | |||||||||||||||||||||||||||
Dividends declared | — | — | — | — | (403,164 | ) | — | — | — | (403,164 | ) | |||||||||||||||||||||||||
Other | — | — | — | — | (197,980 | ) | — | — | — | (197,980 | ) | |||||||||||||||||||||||||
Balance at December 31, 2007 | 278,122,419 | 151,422 | 509,704,584 | 309,262 | 3,359,604 | 1,086,923 | 319,646 | (27,587 | ) | 5,199,270 | ||||||||||||||||||||||||||
Net income | 1,290,643 | — | 1,290,643 | |||||||||||||||||||||||||||||||||
Transfer to appropriated retained earnings | 1,086,923 | (1,086,923 | ) | — | — | |||||||||||||||||||||||||||||||
Issuance of preferred and common shares | — | — | — | — | ||||||||||||||||||||||||||||||||
Valuation of investments | 128,865 | (30,427 | ) | 98,438 | ||||||||||||||||||||||||||||||||
Dividends declared | (447,486 | ) | — | (447,486 | ) | |||||||||||||||||||||||||||||||
Other | (24,020 | ) | — | (24,020 | ) | |||||||||||||||||||||||||||||||
Balance at December 31, 2008 | 278,122,419 | Ps | 151,422 | 509,704,584 | Ps | 309,262 | Ps | 3,975,021 | Ps | 1,290,643 | Ps | 448,511 | Ps | (58,014 | ) | Ps | 6,116,845 | |||||||||||||||||||
Balance at December 31, 2008(1)(Unaudited) | US$ | 67,492 | US$ | 137,842 | US$ | 1,771,723 | US$ | 575,258 | US$ | 199,908 | US$ | (25,858 | ) | US$ | 2,726,365 | |||||||||||||||||||||
(1) | See note 2 (c). |
F-10
Table of Contents
2006 | 2007 | 2008 | 2008(1) | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | Ps | 749,529 | Ps | 1,086,923 | Ps | 1,290,643 | US$ | 575,258 | ||||||||
Adjustments to reconcile net income to net cash used by operating activities: | ||||||||||||||||
Depreciation | 104,553 | 122,835 | 193,151 | 86,090 | ||||||||||||
Amortization | 42,905 | 110,076 | 120,581 | 53,745 | ||||||||||||
Minority interest | (251 | ) | 43,328 | 43,075 | 19,199 | |||||||||||
Provision for loan, accrued interest and accounts receivable losses | 600,273 | 1,268,241 | 2,113,431 | 941,986 | ||||||||||||
Provision for foreclosed assets | 22,044 | 35,783 | 19,461 | 8,674 | ||||||||||||
Provision for losses on investment securities and equity investments | 12,200 | 7,313 | 7,379 | 3,289 | ||||||||||||
Provision for Property, Plant and Equipment | 914 | 2,925 | 2,853 | 1,272 | ||||||||||||
Provision for other assets | 1,600 | 7,914 | 7,250 | 3,231 | ||||||||||||
Reversal of provision for investments | (27,593 | ) | (20,722 | ) | (14,125 | ) | (6,296 | ) | ||||||||
Reversal of provision for loans and accounts receivable | (334,082 | ) | (560,241 | ) | (849,166 | ) | (378,485 | ) | ||||||||
Reversal of provision for foreclosed assets | (54,298 | ) | (52,995 | ) | (46,352 | ) | (20,660 | ) | ||||||||
Reversal of provision for other assets | (880 | ) | (244 | ) | (2,308 | ) | (1,029 | ) | ||||||||
Reversal of provision for Property, Plant and Equipment | (6,845 | ) | (7,537 | ) | (6,468 | ) | (2,883 | ) | ||||||||
Realized and unrealized (gain) loss on derivative financial instruments | 15,449 | (117,653 | ) | (129,689 | ) | (57,804 | ) | |||||||||
Unrealized gain on investment securities | (159,249 | ) | (355,190 | ) | (624,860 | ) | (278,509 | ) | ||||||||
Foreclosed assets donation | 20,888 | 10,708 | 7,321 | 3,263 | ||||||||||||
(Increase) decrease in customers’ acceptances | (47,520 | ) | 79,225 | 54,958 | 24,496 | |||||||||||
(Increase) in accounts receivable | (38,311 | ) | (344,052 | ) | (302,521 | ) | (134,838 | ) | ||||||||
(Increase) in other assets | (187,584 | ) | (1,336,181 | ) | (669,543 | ) | (298,425 | ) | ||||||||
(Decrease) Increase in accounts payable | (253,531 | ) | 822,201 | 88,259 | 39,338 | |||||||||||
(Decrease) Increase in other liabilities | (72,270 | ) | 115,735 | 86,069 | 38,362 | |||||||||||
(Increase) in loans and financial leases | (6,182,386 | ) | (13,087,618 | ) | (7,443,105 | ) | (3,317,498 | ) | ||||||||
Increase in deposits(2) | 4,831,484 | 11,157,682 | 6,010,250 | 2,678,854 | ||||||||||||
(Decrease) Increase in estimated liabilities and allowances | (10,875 | ) | 98,876 | 36,323 | 16,190 | |||||||||||
Net cash used by operating activities | (973,836 | ) | (912,668 | ) | (7,133 | ) | (3,180 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||||||
Proceeds from sales of Property, Plant and Equipment | 53,218 | 15,280 | 28,827 | 12,849 | ||||||||||||
Proceeds from sales of foreclosed assets | 61,791 | 71,811 | 37,326 | 16,637 | ||||||||||||
(Purchases) of Property, Plant and Equipment | (230,992 | ) | (590,568 | ) | (765,652 | ) | (341,262 | ) | ||||||||
Sales (Purchases) of investment securities | 2,815,501 | 232,424 | (902,846 | ) | (402,411 | ) | ||||||||||
Net cash provided by (used) investing activities | 2,699,518 | (271,053 | ) | (1,602,345 | ) | (714,187 | ) | |||||||||
F-11
Table of Contents
2006 | 2007 | 2008 | 2008(1) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Dividends declared | (369,736 | ) | (403,163 | ) | (447,486 | ) | (199,451 | ) | ||||||||
Payment of long-term debt | (628,964 | ) | (477.893 | ) | (256,906 | ) | (114,507 | ) | ||||||||
Placement of long-term debt | 283,354 | 2,025,921 | 1,049,662 | 467,850 | ||||||||||||
Increase (decrease) in overnight funds | (322,868 | ) | 998,445 | 558,718 | 249,029 | |||||||||||
Increase (decrease) in interbank borrowings and borrowings from domestic development banks | (411,124 | ) | 1,334,820 | 1,096,678 | 488,805 | |||||||||||
Issuance of preference and common shares | — | 30,000 | — | — | ||||||||||||
Retained earnings | — | 897,612 | — | — | ||||||||||||
Net cash (Used) provided by financing activities | (1,449,338 | ) | 4,405,742 | 2,000,666 | 891,726 | |||||||||||
Increase in cash and cash equivalents | 276,344 | 3,222,021 | 391,188 | 174,359 | ||||||||||||
Cash and cash equivalents at beginning of year | 1,730,022 | 2,006,366 | 5,228,387 | 2,330,366 | ||||||||||||
Cash and cash equivalents at end of year | Ps | 2,006,366 | Ps | 5,228,387 | Ps | 5,619,575 | US$ | 2,504,725 | ||||||||
Supplemental disclosure of cash flows information: | ||||||||||||||||
Cash paid during the year for: | ||||||||||||||||
Interest | Ps | 1,238,419 | Ps | 1,905,585 | Ps | 2,639,069 | US$ | 1,176,271 | ||||||||
Income taxes | Ps | 161,967 | Ps | 122,477 | Ps | 214,679 | US$ | 95,686 | ||||||||
(1) | See note 2 (c). | |
(2) | The consolidated cash flow for the years ended 2006 and 2007 was modified due to reclassifications made particularly in deposits of the financial activities for operating activities, with the purpose of improving the presentation of comparative information. Amounts previously presented for operating activities were (5,757,800) and (12,149,575); for investing activities were 2,651,998 and (191,828); for financing activities were 3,382,146, and 15,563,424; for the years ended in 2006 and 2007, respectively. |
F-12
Table of Contents
F-13
Table of Contents
Notes to Consolidated Financial Statements
Participation | Participation | |||||||||||||||
percentage | percentage | |||||||||||||||
Entity | Location | Business | Dec-2007 | Dec-2008 | ||||||||||||
Leasing Bancolombia S.A. | Colombia | Leasing | 100 | 100 | ||||||||||||
Fiduciaria Bancolombia S.A. | Colombia | Trust | 98.81 | 98.81 | ||||||||||||
Fiduciaria GBC S.A.(1) | Peru | Trust | — | 98.82 | ||||||||||||
Bancolombia Panamá S.A. | Panama | Banking | 100 | 100 | ||||||||||||
Bancolombia Caymán | Cayman Islands | Banking | 100 | 100 | ||||||||||||
Sistema de Inversiones y Negocios S.A. | Panama | Investments | 100 | 100 | ||||||||||||
Sinesa Holding Company Ltd. | British Virgin Islands | Investments | 100 | 100 | ||||||||||||
Future Net Inc. | Panama | E-commerce | 100 | 100 | ||||||||||||
Banca de Inversión Bancolombia S.A. Corporación Financiera | Colombia | Investment banking | 100 | 100 | ||||||||||||
Inversiones Valsimesa S.A.(2) | Colombia | Investments | 71.75 | — | ||||||||||||
Inmobiliaria Bancol S.A. | Colombia | Real estate broker | 99.09 | 99.06 | ||||||||||||
Fundicom S.A.(3) | Colombia | Metals engineering | 79.90 | — | ||||||||||||
Valores Simesa S.A. | Colombia | Investments | 71.75 | 70.75 | ||||||||||||
Todo UNO Colombia S.A. | Colombia | E-commerce | 89.92 | 89.92 | ||||||||||||
Compañía de Financiamiento Comercial S.A. Sufinanciamiento | Colombia | Financial services | 99.99 | 99.99 | ||||||||||||
Renting Colombia S.A. | Colombia | Operating leasing | 90.30 | 80.50 | ||||||||||||
Renting Perú S.A.C. | Peru | Operating leasing | 90.39 | 80.63 | ||||||||||||
RC Rent a Car S.A. | Colombia | Car rental | 90.80 | 81.51 | ||||||||||||
Catital Investments SAFI S.A. (CI)(4) | Peru | Trust | — | 80.63 | ||||||||||||
Fondo de Inversión en Arrendamiento Operativo Renting Perú(4) | Peru | Car Rental | — | 80.63 | ||||||||||||
Transportes Empresariales de Occidente Ltda.(4) | Colombia | Transportation | — | 80.30 | ||||||||||||
Patrimonio Autónomo Renting Colombia(3) | Colombia | Investments | 100 | — | ||||||||||||
Suleasing International USA, Inc. | USA | Leasing | 100 | 100 | ||||||||||||
Suleasing Internacional do Brasil Locacao de Bens S.A.(2) | Brazil | Leasing | 100 | — | ||||||||||||
Inversiones CFNS Ltda. | Colombia | Investments | 100 | 100 | ||||||||||||
Valores Bancolombia S.A. | Colombia | Securities brokerage | 100 | 100 | ||||||||||||
Suvalor Panamá S.A. | Panama | Securities brokerage | 100 | 100 | ||||||||||||
Bancolombia Puerto Rico Internacional, Inc | Puerto Rico | Banking | 100 | 100 | ||||||||||||
Multienlace S.A.(3) | Colombia | Contact center | 98.20 | — | ||||||||||||
Inversiones IVL S.A. | Colombia | Investments | 98.25 | 98.25 | ||||||||||||
Factoring Bancolombia S.A | Colombia | Financial services | 99.99 | 99.99 | ||||||||||||
Patrimonio Autónomo CV Sufinanciamiento | Colombia | Loan management | 100 | 100 | ||||||||||||
Banagrícola S.A. | Panama | Investments | 98.90 | 99.12 | ||||||||||||
Banco Agrícola Panamá S.A. | Panama | Banking | 98.90 | 99.12 | ||||||||||||
Inversiones Financieras Banco Agrícola S.A. | El Salvador | Investments | 98.08 | 98.38 | ||||||||||||
Banco Agrícola S.A. | El Salvador | Banking | 96.00 | 96.72 | ||||||||||||
Arrendadora Financiera S.A. | El Salvador | Leasing | 96.02 | 96.73 | ||||||||||||
Credibac S.A. de CV | El Salvador | Credit card services | 96.01 | 96.72 | ||||||||||||
Bursabac S.A. de CV | El Salvador | Securities brokerage | 98.08 | 98.38 | ||||||||||||
AFP Crecer S.A. | El Salvador | Pension fund | 98.32 | 98.60 | ||||||||||||
Aseguradora Suiza Salvadoreña S.A. | El Salvador | Insurance company | 94.70 | 95.81 | ||||||||||||
Asesuisa Vida S.A. | El Salvador | Insurance company | 94.70 | 95.80 | ||||||||||||
FCP Colombia Inmobiliaria(4) | Colombia | Real estate broker | — | 64.12 |
(1) | Company created in 2008. | |
(2) | Company liquidated in 2008. | |
(3) | Company sold in 2008. | |
(4) | Company acquired in 2008. |
F-14
Table of Contents
Notes to Consolidated Financial Statements
F-15
Table of Contents
Notes to Consolidated Financial Statements
F-16
Table of Contents
Notes to Consolidated Financial Statements
F-17
Table of Contents
Notes to Consolidated Financial Statements
• | High-volume: they are recorded based on the daily weighted average trading price published by Infoval. |
• | Medium-volume: they are recorded based on the average price published by the stock exchange, being the weighted average trading price on the last five days on which securities are traded. |
• | Low volume and unquoted: They are recorded under the intrinsic value method, through investor’s equity share value increases or decreases calculated based on the most recent audited financial statements that are not older than three months from the valuation date, or more recent statements, if available. |
F-18
Table of Contents
Notes to Consolidated Financial Statements
F-19
Table of Contents
Notes to Consolidated Financial Statements
Long Term | Max. Amount | Short Term | Max. Amount | |||||||||
Ranking | % | Ranking | % | |||||||||
BB+, BB, BB- | Ninety (90 | ) | 3 | Ninety (90 | ) | |||||||
B+, B, B- | Seventy (70 | ) | 4 | Fifty (50 | ) | |||||||
CCC | Fifty (50 | ) | 5 and 6 | Zero (0 | ) | |||||||
DD, EE | Zero (0 | ) |
F-20
Table of Contents
Notes to Consolidated Financial Statements
Max. Registered | ||||
Category | Amount %(1) | Investment Characteristics | ||
B Acceptable risk, greater than normal | Eighty (80) | Present factors of uncertainty that could affect the capacity to continue adequately fulfilling debt service and weaknesses that could affect their financial situation. | ||
C Appreciable risk | Sixty (60) | Present medium-high probabilities of non-fulfillment of timely payments of capital and interest in their financial situation that may compromise the recovery of the investment. | ||
D Significant risk | Forty (40) | Present non-fulfillment of agreed terms of the security and material deficiencies in their financial situation, the probability of recovering the investment is highly doubtful. | ||
E Unrecoverable | Zero (0) | Recovery highly improbable. |
(1) | Based on the net nominal amount as of the valuation date for debt securities or the acquisition cost, net of allowances for equity securities. |
F-21
Table of Contents
Notes to Consolidated Financial Statements
Category | Qualitative factors | |
A —Normal Risk | Loans and financial leases in this category are appropriately serviced. The debtor’s financial statements or its projected cash flows, as well as all other credit information available to the Bank, reflect adequate paying capacity. | |
B —Acceptable Risk, Above Normal | Loans and financial leases in this category are acceptably serviced and guaranty protected, but there are weaknesses which may potentially affect, on a transitory or permanent basis, the debtor’s paying capacity or its projected cash flows, to the extent that, if not timely corrected, would affect the normal collection of credit or contracts. |
F-22
Table of Contents
Notes to Consolidated Financial Statements
Category | Qualitative factors | |
C —Appreciable Risk | Loans and financial leases in this category represent insufficiencies in the debtors’ paying capacity or in the project’s cash flow, which may compromise the normal collection of the obligations. | |
D —Significant Risk | Loans and financial leases in this category are deemed uncollectible. They are considered default loans. | |
E — Unreciveravility |
F-23
Table of Contents
Notes to Consolidated Financial Statements
F-24
Table of Contents
Notes to Consolidated Financial Statements
F-25
Table of Contents
Notes to Consolidated Financial Statements
• | The initial carrying value recorded is the value specified in the court award or the one agreed upon by the debtors. |
• | When foreclosed assets are not in conditions to be immediately disposed of, their cost increases with all those expenses required in order to get such assets ready for sale. |
• | If the proceeds of the sale are more than the settlement value agreed upon with the debtor, that difference is recorded as accounts payable to the debtor. If the proceeds of sale are expected to be insufficient to cover the outstanding debt, the difference must be immediately recorded on the statement of operations as a non-operating expense. |
• | Moveable assets received in payment corresponding to investment securities are valued by applying the criteria indicated in this note under letter (g) Investments, but taking into account provision requirements for the periods referred to below. |
• | The profits obtained from a credit sale are deferred over the life of the credit, and are realized as the obligation is paid off. |
• | When the commercial value of the property is lower than its book value, a provision is recorded for the difference. |
• | Reappraisals of foreclosed assets are recorded as memorandum accounts. |
F-26
Table of Contents
Notes to Consolidated Financial Statements
Buildings | 5 | % | ||
Equipment, furniture and fittings | 10 | % | ||
Computer equipment | 20 | % | ||
Vehicles | 20 | % | ||
Monitors, laptops and CPU’s | 33 | % |
F-27
Table of Contents
Notes to Consolidated Financial Statements
• | Software is amortized over a maximum of three years. | ||
• | Stationery is expensed when consumed. | ||
• | The discount on the issuing of long-term debt is amortized over the term of the redemption. of these same and on straight-line basis. | ||
• | Contributions and affiliations are amortized over the period prepaid. |
Amortization using the Straight-Line Method | $ | 43,823 | ||
Amortization using the Exponential Method | 22,269 | |||
Greater amortized balance | $ | 21,554 | ||
F-28
Table of Contents
Notes to Consolidated Financial Statements
F-29
Table of Contents
Notes to Consolidated Financial Statements
• | The Bank has acquired a right, and therefore has an obligation; and | ||
• | The provision is probable, justifiable, quantifiable and verifiable. |
F-30
Table of Contents
Notes to Consolidated Financial Statements
F-31
Table of Contents
Notes to Consolidated Financial Statements
• | Certain service fees were reclassified from commissions from banking services to credit and debit card annual fees and gains on sale of mortgage loans. | ||
• | Certain securitization fees classified in administrative and other expenses and certain expenses on sale of mortgage loan classified in other expenses (Non-operating income) were reclassified to gains on sale of mortgage loans. | ||
• | The results relating to the residual interest on securitizations were reclassified from other income (Non-operating income) to gains on sale of mortgage loans. |
2007 | 2008 | |||||||
Assets: | ||||||||
Cash and due from banks | US$ | 709,099 | US$ | 644,166 | ||||
Overnight funds | 746,919 | 216,416 | ||||||
Investment securities | 802,648 | 778,977 | ||||||
Loans, net | 5,116,185 | 5,458,269 | ||||||
Customers’ acceptances and derivatives | (659,910 | ) | (291,705 | ) | ||||
Accounts receivable | 91,158 | 94,319 | ||||||
Property, Plant and equipment | 68,392 | 73,337 | ||||||
Other assets | 667,486 | 763,870 | ||||||
Total foreign currency assets | US$ | 7,541,977 | US$ | 7,737,649 | ||||
F-32
Table of Contents
Notes to Consolidated Financial Statements
2007 | 2008 | |||||||
Liabilities: | ||||||||
Deposits | 4,823,721 | 4,908,454 | ||||||
Bank acceptances outstanding | 20,971 | 25,377 | ||||||
Borrowings from development and other domestic banks | 279,768 | 294,107 | ||||||
Interbank borrowings | 747,787 | 925,878 | ||||||
Other liabilities | 1,321,228 | 1,337,292 | ||||||
Total foreign currency liabilities | 7,193,475 | 7,491,108 | ||||||
Net foreign currency asset position | US$ | 348,502 | US$ | 246,541 | ||||
2007 | 2008 | |||||||
Colombian peso denominated: | ||||||||
Cash | Ps | 1,554,035 | Ps | 1,933,033 | ||||
Due from the Colombian Central Bank | 521,113 | 415,617 | ||||||
Due from domestic banks | 96,016 | 63,843 | ||||||
Remittances of domestic negotiated checks in transit | 19,019 | 13,305 | ||||||
Allowance for cash and due from banks | (229 | ) | (116 | ) | ||||
Total local currency | 2,189,954 | 2,425,682 | ||||||
Foreign currency: | ||||||||
Cash | 215,124 | �� | 268,442 | |||||
Due from the Colombian and El Salvador Central Bank | 564,779 | 658,022 | ||||||
Due from foreign banks | 546,012 | 449,868 | ||||||
Remittances of foreign negotiated checks in transit | 102,750 | 68,978 | ||||||
Allowance for cash and due from banks | — | (65 | ) | |||||
Total foreign currency | 1,428,665 | 1,445,245 | ||||||
Total cash and due from banks | Ps | 3,618,619 | Ps | 3,870,927 | ||||
F-33
Table of Contents
Notes to Consolidated Financial Statements
2007 | 2008 | |||||||
Trading Securities | ||||||||
Colombian peso denominated: | ||||||||
Colombian government | Ps | 938,768 | Ps | 1,654,423 | ||||
Colombian Central Bank | 19 | 1 | ||||||
Government entities | 368,419 | 165,944 | ||||||
Financial institutions | 338,693 | 489,731 | ||||||
Corporate bonds | 67,814 | 50,651 | ||||||
Equity securities (1) | 69,718 | 305,606 | ||||||
Total local currency denominated | 1,783,431 | 2,666,356 | ||||||
Foreign currency denominated: | ||||||||
Colombian government | 125,868 | 3,901 | ||||||
Foreign government | 6,087 | 494 | ||||||
Government entities | 12,876 | — | ||||||
Financial institutions | 49,442 | 19,815 | ||||||
Corporate bonds | 8,026 | 604 | ||||||
Equity securities (1) | 23,407 | 25,792 | ||||||
Total foreign currency denominated | 225,706 | 50,606 | ||||||
Total trading securities | 2,009,137 | 2,716,962 | ||||||
Allowance for trading securities | (8,023 | ) | (8,885 | ) | ||||
Total trading securities, net | Ps | 2,001,114 | Ps | 2,708,077 | ||||
(1) | Equity securities include participation in collective portfolios and funds. |
Available for sale - Debt Securities | 2007 | 2008 | ||||||
Colombian peso denominated: | ||||||||
Colombian government | Ps | 549,007 | Ps | 484,037 | ||||
Government entities | 29,729 | 20,759 | ||||||
Financial institutions | 660,622 | 661,618 | ||||||
Other | 26,185 | 15,531 | ||||||
Total local currency denominated | 1,265,543 | 1,181,945 | ||||||
F-34
Table of Contents
Notes to Consolidated Financial Statements
Available for sale - Debt Securities | 2007 | 2008 | ||||||
Foreign currency denominated: | ||||||||
Colombian government | 82,408 | 55,041 | ||||||
El Salvador Central Bank | 39,658 | 26,537 | ||||||
Government entities | 156,364 | 142,936 | ||||||
Foreign government | 379,467 | 594,129 | ||||||
Financial institutions | 31,153 | — | ||||||
Total foreign currency denominated | 689,050 | 818,643 | ||||||
Total Available for sale — Debt securities | 1,954,593 | 2,000,588 | ||||||
Allowance for available for sale securities | — | (224 | ) | |||||
Total available for sale securities, net | Ps | 1,954,593 | Ps | 2,000,364 | ||||
Participation | Participation | |||||||||||||||
percentage at | percentage at | |||||||||||||||
Available for sale — equity securities | December 31, 2007 | 2007 | December 31, 2008 | 2008 | ||||||||||||
Todo Uno Services | 47.04 | % | Ps | 47,998 | 47.04 | % | Ps | 53,449 | ||||||||
Bolsa de Valores de Colombia | 5.87 | % | 8,578 | 10.00 | % | 19,784 | ||||||||||
Sociedad Administradora de Fondos de Pensiones y de Cesantías Protección S.A. | 23.44 | % | 19,481 | 23.44 | % | 19,481 | ||||||||||
Titularizadora Colombiana S.A. | 21.25 | % | 17,308 | 21.25 | % | 17,308 | ||||||||||
Promotora La Alborada(1) | 25.81 | % | 14,001 | 0.00 | % | — | ||||||||||
Metrotel Redes | 28.42 | % | 10,568 | 28.42 | % | 10,568 | ||||||||||
Concesiones Urbanas S.A. | 33.33 | % | 8,449 | 33.33 | % | 8,450 | ||||||||||
Urbanización Chicó Oriental No. 2 Ltda. | 86.45 | % | 7,848 | 86.45 | % | 7,848 | ||||||||||
Depósito Centralizado de Valores de Colombia Deceval S.A. | 13.58 | % | 4,209 | 15.78 | % | 4,738 | ||||||||||
Cadenalco S.A. Titularización | 3.33 | % | 4,378 | 3.33 | % | 4,555 | ||||||||||
Redeban Red Multicolor | 20.36 | % | 4,396 | 20.36 | % | 4,396 | ||||||||||
VISA Inc(2) | 0.00 | % | — | 0.01 | % | 4,377 | ||||||||||
Concesiones CCFC S.A. | 25.50 | % | 4,358 | 25.50 | % | 4,358 | ||||||||||
Banco Latinoamericano de exportaciones BLADEX S.A. | 0.27 | % | 2,618 | 0.27 | % | 2,813 | ||||||||||
Other | 6,432 | 10,338 | ||||||||||||||
Total equity securities | 160,622 | 172,463 | ||||||||||||||
Allowance for equity securities | (53,717 | ) | (45,254 | ) | ||||||||||||
Total equity securities, net | Ps | 106,905 | Ps | 127,209 | ||||||||||||
(1) | These securities were sold during 2008. | |
(2) | During 2007, Visa International Service Association, Visa U.S.A. Inc., Visa Europe Limited and Visa Canada Association, developed a restructuring program, in consequence, Visa International recognized economic rights to Bancolombia forPs 4,377. |
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Table of Contents
Notes to Consolidated Financial Statements
2007 | 2008 | |||||||||||||||
Valuation | Valuation | |||||||||||||||
Category | allowance | Category | allowance | |||||||||||||
Todo Uno Services | D | Ps | 34,849 | D | Ps | 36,469 | ||||||||||
Urbanización Chicó Oriental No. 2 Ltda. | E | 7,848 | E | 7,848 | ||||||||||||
Urbanización Sierras del Chicó Ltda. | E | 203 | E | 203 | ||||||||||||
Industria Colombo Andina Inca S.A. | E | 300 | E | 300 | ||||||||||||
Sociedad Promotora Siderúrgica Colombiana E.U. | D | 427 | D | 427 | ||||||||||||
Promotora La Alborada | E | 9,897 | — | — | ||||||||||||
Oikos Títulos de Inversión en Circulación | E | 186 | — | — | ||||||||||||
Others | 7 | 7 | ||||||||||||||
Ps | 53,717 | Ps | 45,254 | |||||||||||||
Held to Maturity Securities | 2007 | 2008 | ||||||
Colombian peso denominated: | ||||||||
Colombian government | Ps | 525,368 | Ps | 495,346 | ||||
Colombian Central Bank | 145 | — | ||||||
Government entities | 47,765 | 422,427 | ||||||
Financial institutions | 423,056 | 706,356 | ||||||
Corporate bonds | 41,710 | 27,494 | ||||||
Total Colombian-Peso denominated | 1,038,044 | 1,651,623 | ||||||
Foreign currency denominated: | ||||||||
El Salvador Central Bank | 546,552 | 643,730 | ||||||
Government entities | 853 | 1,581 | ||||||
Foreign government | 64,929 | 93,157 | ||||||
Financial institutions | 72,374 | 49,310 | ||||||
Other | 2,694 | 15,043 | ||||||
Total foreign currency denominated | 687,402 | 802,821 | ||||||
1,725,446 | 2,454,444 | |||||||
Allowance for Maturity securities | (13,807 | ) | (11,818 | ) | ||||
Total Held to Maturity securities, net | Ps | 1,711,639 | Ps | 2,442,626 | ||||
F-36
Table of Contents
Notes to Consolidated Financial Statements
Maturity | Balance | Yield(1) | ||||||
One year or less | Ps | 711,301 | 9.47 | % | ||||
After one year through five years | 1,475,623 | 6.39 | % | |||||
After five years through ten years | 377,114 | 2.63 | % | |||||
After ten years | 69,768 | 7.42 | % | |||||
Total | Ps | 2,633,806 | 6.71 | % | ||||
(1) | Calculated using internal return rate (IRR) as of December 31, 2008. |
Classification | Mortgage | Commercial | Consumer | Small loan | Financial leases | Total | ||||||||||||||||||
“A” Normal Risk | Ps | 2,729,470 | Ps | 22,060,695 | Ps | 6,056,276 | Ps | 114,274 | Ps | 4,436,788 | Ps | 35,397,503 | ||||||||||||
“B” Acceptable Risk | 78,228 | 677,279 | 225,934 | 4,065 | 149,516 | 1,135,022 | ||||||||||||||||||
“C” Appreciable Risk | 35,067 | 157,559 | 81,695 | 2,047 | 23,717 | 300,085 | ||||||||||||||||||
“D” Significant Risk | 13,793 | 380,711 | 123,025 | 1,328 | 85,177 | 604,034 | ||||||||||||||||||
“E” Unrecoverable | 27,070 | 120,814 | 106,281 | 8,186 | 3,629 | 265,980 | ||||||||||||||||||
Total loans and financial leases | Ps | 2,883,628 | Ps | 23,397,058 | Ps | 6,593,211 | Ps | 129,900 | Ps | 4,698,827 | Ps | 37,702,624 | ||||||||||||
Classification | Mortgage | Commercial | Consumer | Small loan | Financial leases | Total | ||||||||||||||||||
“A” Normal Risk | Ps | 3,146,863 | Ps | 25,590,760 | Ps | 6,799,419 | Ps | 123,648 | Ps | 4,989,406 | Ps | 40,650,096 | ||||||||||||
“B” Acceptable Risk | 123,284 | 1,464,256 | 287,316 | 6,160 | 335,816 | 2,216,832 | ||||||||||||||||||
“C” Appreciable Risk | 63,246 | 304,088 | 137,291 | 2,899 | 69,033 | 576,557 | ||||||||||||||||||
“D” Significant Risk | 20,269 | 552,306 | 193,538 | 2,396 | 103,383 | 871,892 | ||||||||||||||||||
“E” Unrecoverable | 37,664 | 157,321 | 115,085 | 8,019 | 9,104 | 327,193 | ||||||||||||||||||
Total loans and financial leases | Ps | 3,391,326 | Ps | 28,068,731 | Ps | 7,532,649 | Ps | 143,122 | Ps | 5,506,742 | Ps | 44,642,570 | ||||||||||||
F-37
Table of Contents
Notes to Consolidated Financial Statements
2007 | 2008 | |||||||
Ordinary restructurings | Ps | 849,522 | Ps | 736,391 | ||||
Extraordinary restructurings | 1,265 | — | ||||||
Under law 550 | 72,519 | 79,980 | ||||||
Under law 617 | 151,883 | 133,007 | ||||||
Creditor agreement proceedings | 4,092 | 1,959 | ||||||
Performance Agreement | 1,165 | 918 | ||||||
Interest and other receivables items | 16,164 | 16,224 | ||||||
Restructured loans | 1,096,610 | 968,479 | ||||||
Allowances for loan losses | (211,779 | ) | (370,049 | ) | ||||
Restructured loans, net | Ps | 884,831 | Ps | 598,430 | ||||
2006 | 2007 | 2008 | ||||||||||
Balance at beginning of year | Ps | 705,882 | Ps | 834,183 | Ps | 1,457,151 | ||||||
Balance at beginning of period (Factoring Bancolombia) | 5,625 | — | — | |||||||||
Balace at beginning of period (Banagrícola’s subsidiaries)(1) | — | 147,357 | — | |||||||||
Provision for loan losses | 568,679 | 1,203,543 | 1,986,710 | |||||||||
Charge-offs | (136,789 | ) | (186,273 | ) | (547,860 | ) | ||||||
Effect of difference in exchange rate | (1,210 | ) | (25,441 | ) | 45,604 | |||||||
Reversals of provisions | (308,004 | ) | (516,218 | ) | (807,245 | ) | ||||||
Balance at end of year | Ps | 834,183 | Ps | 1,457,151 | Ps | 2,134,360 | ||||||
Ratio of charge-offs to average outstanding loans | 0.63 | % | 0.60 | % | 1.36 | % | ||||||
(1) | Includes allowance for loan losses of Banco Agrícola, Banco Agrícola (Panamá), Arrendadora Financiera, Credibac, Aseguradora Suiza Salvadoreña and Asesuisa Vida. |
2006 | 2007 | 2008 | ||||||||||
Balance at beginning of year | Ps | 8,655 | Ps | 11,644 | Ps | 33,303 | ||||||
Balance at beginning of period (Factoring Bancolombia) | 481 | — | — | |||||||||
Balance at beginning of period (Conavi, Corfinsura and subsidiaries) | — | — | — | |||||||||
Provision | 14,825 | 35,543 | 58,721 | |||||||||
Charge-offs | (4,126 | ) | (3,167 | ) | (12,782 | ) | ||||||
Recoveries | (8,159 | ) | (10,507 | ) | (25,581 | ) | ||||||
Effect of changes in exchange rate | (32 | ) | (210 | ) | 662 | |||||||
Balance at end of year | Ps | 11,644 | Ps | 33,303 | Ps | 54,323 | ||||||
F-38
Table of Contents
Notes to Consolidated Financial Statements
2007 | 2008 | |||||||
Customer Acceptances | ||||||||
Current | Ps | 53,890 | Ps | 55,925 | ||||
Overdue | 1,319 | 1,010 | ||||||
Total | 55,209 | 56,935 | ||||||
Derivatives | ||||||||
(Fair value of derivatives instruments) | ||||||||
Spot Transactions, net | ||||||||
Foreign exchange rights contracts bought | 15,527 | 971 | ||||||
Foreign exchange rights contracts sold | 10,575 | 6,880 | ||||||
Investment securities rights bought (local currency) | 78,381 | — | ||||||
Investment securities rights sold (local currency) | 67,322 | — | ||||||
Total rights | 171,805 | 7,851 | ||||||
Foreign exchange commitments contracts bought | (15,433 | ) | (974 | ) | ||||
Foreign exchange commitments contracts sold | (10,656 | ) | (6,795 | ) | ||||
Investment securities commitments bought (local currency) | (77,898 | ) | — | |||||
Investment securities commitments sold (local currency) | (67,495 | ) | — | |||||
Total obligations | (171,482 | ) | (7,769 | ) | ||||
Total Spot Transactions, net | 323 | 82 | ||||||
Forward Contracts | ||||||||
Foreign exchange rights contracts bought | 3,211,826 | 3,590,438 | ||||||
Foreign exchange rights contracts sold | 4,462,834 | 4,465,948 | ||||||
Investment securities rights bought (local currency) | 643,016 | — | ||||||
Investment securities rights sold (local currency) | 275,637 | 10,820 | ||||||
Other rights | 300 | 8,927 | ||||||
Total rights | 8,593,613 | 8,076,133 | ||||||
Foreign exchange commitments contracts bought | (3,243,867 | ) | (3,462,854 | ) | ||||
Foreign exchange commitments contracts sold | (4,399,430 | ) | (4,522,433 | ) | ||||
Investment securities commitments bought (local currency) | (643,308 | ) | — | |||||
Investment securities commitments sold (local currency) | (274,938 | ) | (13,045 | ) | ||||
Total obligations | (8,561,543 | ) | (7,998,332 | ) | ||||
Total(1) | 32,070 | 77,801 | ||||||
Futures Contracts | ||||||||
Foreign exchange rights contracts bought | 30,117 | 42,824 | ||||||
Foreign exchange rights contracts sold | 10,036 | 12,729 | ||||||
Investment securities rights bought (local currency) | 863 | 2,276 |
F-39
Table of Contents
Notes to Consolidated Financial Statements
2007 | 2008 | |||||||
Investment securities rights sold (local currency) | 5,611 | 5,654 | ||||||
Other rights | 599 | 7,682 | ||||||
Total rights | 47,226 | 71,165 | ||||||
Foreign exchange commitments contracts bought | (30,117 | ) | (42,824 | ) | ||||
Foreign exchange commitments contracts sold | (10,036 | ) | (12,729 | ) | ||||
Investment securities commitments bought (local currency) | (863 | ) | (2,067 | ) | ||||
Investment securities commitments sold (local currency) | (5,611 | ) | (5,859 | ) | ||||
Other commitments | (603 | ) | (7,859 | ) | ||||
Total obligations | (47,230 | ) | (71,338 | ) | ||||
Total Future Contracts | (4 | ) | (173 | ) | ||||
Swaps | ||||||||
Foreign exchange right contracts | 3,129,471 | 4,465,747 | ||||||
Interest rate rights contracts | 155,589 | 422,005 | ||||||
Foreign exchange commitments contracts | (3,024,895 | ) | (4,338,883 | ) | ||||
Interest rate commitments contracts | (153,625 | ) | (399,395 | ) | ||||
Total Swaps | 106,540 | 149,474 | ||||||
Options | ||||||||
Foreign exchange call options | (1,062 | ) | 7,070 | |||||
Foreign exchange put options | (141 | ) | (8,210 | ) | ||||
Caps | 3,066 | (10,521 | ) | |||||
Total Options | 1,863 | (11,661 | ) | |||||
Total customer acceptances and derivatives | Ps | 196,001 | Ps | 272,458 | ||||
(1) | Includes forward contracts known in Colombia as “operaciones carrusel”. |
F-40
Table of Contents
Notes to Consolidated Financial Statements
2007(2) | 2008(2) | |||||||
Credit card compensation | Ps | 275,765 | Ps | 258,945 | ||||
Overnight funds sold | 2,394 | 194 | ||||||
Commissions | 46,527 | 51,064 | ||||||
Sierras del Chicó y Chicó Oriental | 4,467 | 4,584 | ||||||
Sale of Bank’s equity investments(1) | 49,744 | — | ||||||
Renting | 63 | 641 | ||||||
Advances to contractors and fees | 149,438 | 241,068 | ||||||
Commitment seller | 19,289 | 33,282 | ||||||
Dividends | 2,008 | 9,084 | ||||||
Treasury operations pending of paid by the customers | 2,500 | 21,878 | ||||||
Services and properties sells | 24,017 | 23,482 | ||||||
Employee advances | 5,835 | 6,803 | ||||||
Deposit security receivable (“Fogafin”) | 23,342 | 32,323 | ||||||
Insurance premium receivables | 32,525 | 55,538 | ||||||
Taxes | 10,447 | 19,638 | ||||||
Other credit card receivable | 11,219 | 7,264 | ||||||
International operations | 10,234 | 26,801 | ||||||
Accounts receivables in branches | 25,846 | 4,730 | ||||||
Other receivables | 54,850 | 87,816 | ||||||
Total accounts receivable | 750,510 | 885,135 | ||||||
Allowance for accounts receivable losses | (34,404 | ) | (56,318 | ) | ||||
Accounts receivable | Ps | 716,106 | Ps | 828,817 | ||||
2006 | 2007 | 2008 | ||||||||||
Balance at beginning of year | Ps | 30,984 | Ps | 22,215 | Ps | 34,404 | ||||||
Balance at beginning of period (Banagrícola’s subsidiaries)(3) | — | 2,787 | — | |||||||||
Provision for uncollectible amounts | 17,621 | 28,536 | 68,997 | |||||||||
Charge-offs | (5,573 | ) | (7,052 | ) | (16,481 | ) | ||||||
Effect of exchange rate | 557 | (459 | ) | 1,247 | ||||||||
Reversal of provision and recoveries | (21,374 | ) | (11,623 | ) | (31,849 | ) | ||||||
Balance at end of year | Ps | 22,215 | Ps | 34,404 | Ps | 56,318 | ||||||
(1) | Includes sales of Lab Investment & Logistic and Abocol and affiliate. | |
(2) | Includes all accounts receivable except those originated for interest loans. | |
(3) | Includes allowance for accounts receivable losses of Banco Agrícola, Aseguradora Suiza Salvadoreña and Asesuisa Vida. |
F-41
Table of Contents
Notes to Consolidated Financial Statements
2007 | 2008 | |||||||
Property, Plant and Equipment | ||||||||
Land | Ps | 136,369 | Ps | 152,688 | ||||
Buildings | 421,666 | 816,547 | ||||||
Furniture, equipment and fixtures | 261,029 | 274,692 | ||||||
Computer equipment | 543,041 | 503,426 | ||||||
Vehicles | 13,034 | 9,773 | ||||||
Construction in progress | 122,606 | 6,604 | ||||||
Machinery and equipment | 17,293 | — | ||||||
Equipment in — transit(1) | 157,341 | 180,435 | ||||||
Total | 1,672,379 | 1,944,165 | ||||||
Less accumulated depreciation | (806,567 | ) | (768,592 | ) | ||||
Allowance | (9,994 | ) | (4,456 | ) | ||||
Property, Plant and equipment, net | Ps | 855,818 | Ps | 1,171,117 | ||||
(1) | Includes goods being imported to be allocated to leasing. |
2007(1) | 2008 | |||||||
Operating Leases | ||||||||
Machinery and equipment | Ps | 5,650 | Ps | 32,721 | ||||
Vehicles | 482,440 | 571,669 | ||||||
Furniture, equipment and fixtures | 15,271 | 17,947 | ||||||
Computer equipment | 97,259 | 150,800 | ||||||
Real estate | 1,711 | 126,007 | ||||||
Total | 602,331 | 899,144 | ||||||
Rents | 15,690 | 22,746 | ||||||
Less accumulated depreciation | (126,080 | ) | (189,161 | ) | ||||
Allowance | (3,608 | ) | (6,467 | ) | ||||
Operating Leases, net | Ps | 488,333 | Ps | 726,262 | ||||
(1) | As of December 31, 2007, includes Sutecnología operating leases since the beginning of the year. Sutecnología merged with Leasing Bancolombia, on December 2007. |
F-42
Table of Contents
Notes to Consolidated Financial Statements
2007 | 2008 | |||||||
Prepaid expenses: | ||||||||
Insurance premiums | Ps | 11,636 | Ps | 11,565 | ||||
Software licenses | 10,499 | 8,887 | ||||||
Other | 1,597 | 1,554 | ||||||
Total prepaid expenses | 23,732 | 22,007 | ||||||
Deferred charges: | ||||||||
Studies and projects | 10,058 | 7,391 | ||||||
Computer programs | 25,329 | 38,761 | ||||||
Leasehold improvements | 8,898 | 5,427 | ||||||
Stationery and supplies | 1,618 | 1,852 | ||||||
Discounts on securities sale | 12,918 | 11,544 | ||||||
IT implementation fees and licences | — | 9,102 | ||||||
Banagrícola acquisition costs | 38,033 | 20,751 | ||||||
Facilities | 8,082 | 6,880 | ||||||
Commisions | 2,700 | 5,663 | ||||||
Other | 6,533 | 3,503 | ||||||
Total deferred charges | Ps | 114,169 | Ps | 110,874 | ||||
Total prepaid expenses and deferred charges | Ps | 137,901 | Ps | 132,881 | ||||
2007 | 2008 | |||||||
Other assets: | ||||||||
Value added tax deductible and withholding taxes | Ps | 14,486 | Ps | 46,294 | ||||
Investment in Trust | 10,978 | 6,090 | ||||||
Deposits | 23,842 | 162,174 | ||||||
Assets to place in lease contracts | 502,260 | 831,633 | ||||||
Inventory | 7,906 | 1,841 | ||||||
Joint venture | 8,329 | 10,659 | ||||||
Other | 12,841 | 35,159 | ||||||
Total other assets | Ps | 580,642 | Ps | 1,093,850 | ||||
F-43
Table of Contents
Notes to Consolidated Financial Statements
2006 | 2007 | 2008 | ||||||||||
Balance at beginning of year | Ps | 50,959 | Ps | 40,164 | Ps | 977,095 | ||||||
Additions derived from the acquisition of Factoring Bancolombia by Bancolombia | 15,019 | — | — | |||||||||
Additions derived from the acquisition of Banagrícola by Bancolombia Panamá | — | 881,434 | 1,786 | |||||||||
Reclassifications | — | — | (1,325 | ) | ||||||||
Other Additions(1) | — | 132,154 | 3,329 | |||||||||
Amortization | (25,814 | ) | (70,411 | ) | (73,009 | ) | ||||||
Effect of change in exchange rate | — | (6,246 | ) | 100,763 | ||||||||
Balance at end of year | Ps | 40,164 | Ps | 977,095 | Ps | 1,008,639 | ||||||
(1) | Other Additions as of December 31,2007, corresponds to: a) The balance at beginning of year of the goodwill derived from the acquisition of Inversiones Financieras Banco Agricola (IFBA) and Banco Agricola by Banagricola and the goodwill derived from the acquisition of Banco Agricola by Inversiones Financieras Banco Agricola in the total amount ofPs 74,521; b) the additions to the goodwill derived from the acquisition of IFBA and Banco Agricola by Banagricola in the amount ofPs 30,052 and the additions to the goodwill derived from the acquisition of Banco Agricola by IFBA in the amount ofPs 24,436 during the year 2007 and c) the goodwill derived from the acquisition of Sutecnologia by Leasing Bancolombia in the amount ofPs 3,145. | |
Other Additions as of December 31, 2008, corresponds to: a) the additions to the goodwill derived from the acquisition of IFBA, Banco Agricola and Aseguradora Suiza Salvadoreña by Banagricola in the amount ofPs 704; the additions to the goodwill derived from the acquisition of Banco Agricola by IFBA in the amount ofPs 2,401 and the additions to the goodwill derived from the acquisition of Capital Investment SAFI by Renting Peru in the amount ofPs 224 during the year 2008. |
Goodwill pending to | ||||||||
Segments | Goodwill | amortize | ||||||
Corporate | Ps | 216,947 | Ps | 206,304 | ||||
Retail | 629,340 | 598,466 | ||||||
Mortgage | 130,950 | 124,526 | ||||||
Insurance | 30,172 | 28,692 | ||||||
Pensions | 35,527 | 33,784 | ||||||
Ps | 1,042,936 | Ps | 991,772 | |||||
F-44
Table of Contents
Notes to Consolidated Financial Statements
2007 | 2008 | |||||||
Equity securities | Ps | 58,906 | Ps | 54,573 | ||||
Real estate | 166,992 | 143,181 | ||||||
Other assets | 8,218 | 6,726 | ||||||
Total | 234,116 | 204,480 | ||||||
Allowance | (201,822 | ) | (179,827 | ) | ||||
Total foreclosed assets, net | Ps | 32,294 | Ps | 24,653 | ||||
2007 | 2008 | |||||||
Chicó Oriental Número 2 Ltda. | Ps | 14,202 | Ps | 14,202 | ||||
Urbanización Sierras del Chicó Ltda. | 11,703 | 11,703 | ||||||
Procampo trust | 7,044 | 7,044 | ||||||
Enka de Colombia | 6,965 | 3,366 | ||||||
Lote2C Chisa trust | 4,480 | 4,624 | ||||||
Pizano S.A. | 3,663 | 3,663 | ||||||
Convertible Securities Pizano S.A. | 3,221 | 3,221 | ||||||
Fibra Tolima trust | 1,572 | 1,572 | ||||||
Calima Resort trust | 1,485 | 1,485 | ||||||
Fiduciario ADM-Ceylán trust | 1,209 | — | ||||||
BIMA trust | 675 | 675 | ||||||
Clinica Shaio trust | — | 456 | ||||||
Líneas Agromar trust | 209 | 209 | ||||||
Other | 2,478 | 2,353 | ||||||
Total | Ps | 58,906 | Ps | 54,573 | ||||
2006 | 2007 | 2008 | ||||||||||
Balance at beginning of year | Ps | 205,176 | Ps | 174,393 | Ps | 201,822 | ||||||
Balance at beginning of year 2007 (Aseguradora Suiza, Banco Agrícola) | — | 70,612 | — | |||||||||
Balance at beginning of the year (Factoring Bancolombia, Conavi, Corfinsura and subsidiaries) | 2,370 | — | — | |||||||||
Provision | 22,037 | 35,298 | 19,725 | |||||||||
Charge-offs | (978 | ) | (23,866 | ) | (128 | ) | ||||||
Recovery of provisions | (54,298 | ) | (52,995 | ) | (48,717 | ) | ||||||
Reclassifications | 91 | 5,244 | 133 | |||||||||
Effect of changes in exchange rates | (5 | ) | (6,864 | ) | 6,992 | |||||||
Balance at the end of year | Ps | 174,393 | Ps | 201,822 | Ps | 179,827 | ||||||
F-45
Table of Contents
Notes to Consolidated Financial Statements
2007 | 2008 | |||||||
Asset revaluations, net | Ps | 520,788 | Ps | 612,683 | ||||
Less: proportional equity revaluations | (167,069 | ) | (116,194 | ) | ||||
Less: minority interests | (34,073 | ) | (47,978 | ) | ||||
Total equity revaluations | Ps | 319,646 | Ps | 448,511 | ||||
2007 | 2008 | |||||||
Foreign banks | ||||||||
Short-term | Ps | 454,878 | Ps | 489,897 | ||||
Long-term | 1,051,733 | 1,587,394 | ||||||
Total | Ps | 1,506,611 | Ps | 2,077,291 | ||||
2008 | ||||
2009 | Ps | 1,491,094 | ||
2010 | 155,070 | |||
2011 | 112,977 | |||
2012 | 2,297 | |||
2013 and thereafter | 315,853 | |||
Ps | 2,077,291 | |||
F-46
Table of Contents
Notes to Consolidated Financial Statements
2007 | 2008 | |||||||
Banco de Comercio Exterior de Colombia (“Bancoldex”) | Ps | 1,190,028 | Ps | 1,424,287 | ||||
Fondo para el Financiamiento del Sector Agropecuario (“Finagro”) | 631,940 | 821,490 | ||||||
Findeter | 1,035,910 | 1,112,559 | ||||||
Other | 486,757 | 512,298 | ||||||
Total | Ps | 3,344,635 | Ps | 3,870,634 | ||||
2009 | Ps | 970,428 | ||
2010 | 626,984 | |||
2011 | 541,455 | |||
2012 | 538,074 | |||
2013 and thereafter | 1,193,693 | |||
Total | Ps | 3,870,634 | ||
2007 | 2008 | |||||||
Unearned income | Ps | 33,779 | Ps | 40,086 | ||||
Accrued severance Law 50, net of advances | 21,028 | 22,044 | ||||||
Accrued severance pre-Law 50, net of advances to employees ofPs 10,160 andPs 11,775 and in 2007 and 2008, respectively | 13,669 | 14,980 | ||||||
Accrued payroll and other severance benefits | 48,308 | 90,517 | ||||||
Accrued pension obligations net of deferred cost | 110,669 | 111,759 | ||||||
Negative goodwill | 4,604 | 758 | ||||||
Deferred interest on restructured loans | 45,956 | 37,026 | ||||||
Deferred tax liability | 64,183 | 120,327 | ||||||
Advances | 52,200 | 47,232 | ||||||
Insurance reserves | 67,229 | 82,903 | ||||||
Deferred profit on sales of assets | 12,787 | 5,869 | ||||||
Deferred paid standby letters | 3,965 | 310 | ||||||
Other | 25,056 | 15,690 | ||||||
Total | Ps | 503,433 | Ps | 589,501 | ||||
F-47
Table of Contents
Notes to Consolidated Financial Statements
Projected | ||||||||||||
pension | ||||||||||||
liability | Deferred cost | Net | ||||||||||
Balance at December 31, 2006 | Ps | 99,085 | — | Ps | 99,085 | |||||||
Adjustment per actuarial valuation | 25,736 | (25,736 | ) | — | ||||||||
Benefits paid | (12,652 | ) | — | (12,652 | ) | |||||||
Settlement due to sale of Almacenar | (1,500 | ) | — | (1,500 | ) | |||||||
Pension Expense | — | 25,736 | 25,736 | |||||||||
Balance at December 31, 2007 | 110,669 | — | 110,669 | |||||||||
Adjustment per actuarial valuation | 12,261 | (12,261 | ) | — | ||||||||
Benefits paid | (11,171 | ) | — | (11,171 | ) | |||||||
Pension Expense | — | 12,261 | 12,261 | |||||||||
Balance at December 31, 2008 | Ps | 111,759 | — | Ps | 111,759 | |||||||
2006 | 2007 | 2008 | ||||||||||
Discount rate | 16.53 | % | 14.05 | % | 12.43 | % | ||||||
Future pension increases | 10.55 | % | 8.83 | % | 7.63 | % |
F-48
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Notes to Consolidated Financial Statements
2009 | Ps | 726,179 | ||
2010 | 659,545 | |||
2011 | 392,489 | |||
2012 | 168,152 | |||
2013 | 470,886 | |||
2014 and thereafter | 1,226,235 | |||
Total | Ps | 3,643,486 | ||
2007 | 2008 | |||||||
Income tax payable | Ps | 39,548 | Ps | 45,367 | ||||
Fines and sanctions(1) | 92,395 | 53,641 | ||||||
Labor obligations | 24,303 | 71,933 | ||||||
FICAFE contingency(2) | 48,772 | 58,973 | ||||||
Accrued expenses Almacenes Éxito | 1,203 | 4,871 | ||||||
Other | 12,639 | 20,398 | ||||||
Total | Ps | 218,860 | Ps | 255,183 | ||||
(1) | See Note 26(d). | |
(2) | As a result of Banagrícola’s acquisition, the Bank for the year ended December 31, 2008, has established an allowance available to absorb probable losses inherent in the FICAFE investment, booked through its subsidiary, Banco Agrícola S.A. FICAFE investment consists of fiduciary’s certifications, issued by the Fund of Enviromental Preservation of Coffee-producing lands established by the Salvadorian government. |
F-49
Table of Contents
Notes to Consolidated Financial Statements
Income tax rate - | Income tax rate - | Income tax rate - 2008 | ||||||||||
Company | 2006 | 2007 | onwards | |||||||||
Companies governed by tax stability agreements: | ||||||||||||
Bancolombia, Leasing Bancolombia, Banca de Inversión, Fiduciaria Bancolombia | 37 | % | 36 | % | 35 | % | ||||||
Subsidiaries not governed by tax stability agreements | 35 | % | 34 | % | 33 | % |
F-50
Table of Contents
Notes to Consolidated Financial Statements
2006 | 2007 | 2008 | ||||||||||
Income before income taxes | Ps | 924,409 | Ps | 1,448,806 | Ps | 1,764,699 | ||||||
Adjustments for consolidation purposes, net | 159,103 | 653,554 | 412,456 | |||||||||
Difference between net operating loss carry-forwards and presumed income | 20,879 | 91,947 | 9,874 | |||||||||
Non-deductible provisions, costs and expenses | 177,966 | 236,274 | 195,190 | |||||||||
Non-taxable or exempt income | (636,915 | ) | (1,064,598 | ) | (744,589 | ) | ||||||
Difference between monetary correction for tax purposes and for financial reporting purposes | (62,776 | ) | — | — | ||||||||
Excess of accrued income over valuation income | 6,652 | (23,142 | ) | (78,648 | ) | |||||||
Amortization of excess of presumed income over ordinary income and amortization of net operating loss carry forwards | (102,352 | ) | (65,391 | ) | (15,433 | ) | ||||||
Difference between profit on sale of assets for tax purposes and for financial reporting purposes | — | 154 | (29,847 | ) | ||||||||
Valuation derivatives effect | (33,075 | ) | (35,380 | ) | (86,314 | ) | ||||||
Special tax deduction for Investment in Real Productive Assets | (21,254 | ) | (177,036 | ) | (203,272 | ) | ||||||
Other | (66,281 | ) | (57,513 | ) | (10,866 | ) | ||||||
Taxable income | Ps | 366,356 | Ps | 1,007,674 | Ps | 1,213,250 | ||||||
Statutory tax rate | 37.21 | % | 33.58 | % | 34.32 | % | ||||||
Estimated current income tax | Ps | 136,307 | Ps | 338,364 | Ps | 416,381 | ||||||
Deferred income tax expense (benefit) | 38,573 | 23,519 | 57,675 | |||||||||
Total | Ps | 174,880 | Ps | 361,883 | Ps | 474,056 | ||||||
Fiscal Losses to amortize | ||||||||||||||||||||||||||||||||||||||||
Capital | Fiduciaria | Fondo de | Renting | Inmobiliaria | Inversiones | RC Rent | Renting | Todo Uno | ||||||||||||||||||||||||||||||||
Investment | GBC | Inversión | Perú | Banacol | NL | A Car | Colombia | Colombia | Total | |||||||||||||||||||||||||||||||
2010 | — | — | — | — | — | Ps | 15 | — | — | — | Ps | 15 | ||||||||||||||||||||||||||||
2011 | — | — | — | — | — | — | — | — | 28 | 28 | ||||||||||||||||||||||||||||||
2012 | — | — | — | — | 49 | — | — | — | 126 | 175 | ||||||||||||||||||||||||||||||
2013 | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
With no maximum expiry date | 76 | 505 | 506 | 3,088 | — | — | 1,887 | 100,066 | — | 106,128 | ||||||||||||||||||||||||||||||
Ps | 76 | Ps | 505 | Ps | 506 | Ps | 3,088 | Ps | 49 | Ps | 15 | Ps | 1,887 | Ps | 100,066 | Ps | 154 | Ps | 106,346 | |||||||||||||||||||||
F-51
Table of Contents
Notes to Consolidated Financial Statements
Excess of presumed income over ordinary income | ||||||||||||||||||||||||||||
Inversiones CFNS | Renting Colombia | Factoring | RC Rent a Car | Banca de Inversión | Bancolombia | Total | ||||||||||||||||||||||
2009 | Ps | — | Ps | 1,851 | Ps | — | Ps | — | Ps | — | Ps | 42,569 | Ps | 44,420 | ||||||||||||||
2010 | — | 2,350 | — | — | — | — | 2,350 | |||||||||||||||||||||
2011 | — | 3,012 | — | — | — | — | 3,012 | |||||||||||||||||||||
2012 | — | 1,686 | 595 | — | 282 | — | 2,562 | |||||||||||||||||||||
2013 | 104 | 4,333 | 72 | 43 | 3,570 | 8,122 | ||||||||||||||||||||||
Ps | 104 | Ps | 13,232 | Ps | 666 | Ps | 43 | Ps | 3,852 | Ps | 42,569 | Ps | 60,466 | |||||||||||||||
2006 | 2007 | 2008 | ||||||||||
Authorized shares | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||||||||
Issued and outstanding: | ||||||||||||
Common shares with a nominal value ofPs 500 (in pesos) | 509,704,584 | 509,704,584 | 509,704,584 | |||||||||
Preference shares with a nominal value ofPs 500 (in pesos) | 218,122,421 | 278,122,419 | 278,122,419 |
2006 | 2007 | 2008 | ||||||||||
Legal reserve(1) | Ps | 1,405,733 | Ps | 1,172,799 | Ps | 2,172,068 | ||||||
Additional paid — in capital | 268,005 | 1,165,617 | 1,165,617 | |||||||||
Other reserves | 639,869 | 1,021,188 | 637,336 | |||||||||
Total | Ps | 2,313,607 | Ps | 3,359,604 | Ps | 3,975,021 | ||||||
(1) | Includes legal reserve and net income from previous years. |
F-52
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Notes to Consolidated Financial Statements
2007(2) | 2008 | 2009 | ||||
Preceding year’s unconsolidated earnings | Ps 582,365 | Ps 804,261 | Ps 1,043,669 | |||
Dividends in cash (in Colombian pesos) | Ps 532 per share payable in four quarterly installments ofPs 133 per share from April 2007 on 509,704,584 and 218,122,421 common and preferred shares, respectively | Ps 568 per share payable in four quarterly installments ofPs 142 per share from April 2008 on 509,704,584 and 278,122,419 common and preferred shares, respectively | Ps 624 per share payable in four quarterly installments ofPs 156 per share from April 2009 on 509,704,584 and 278,122,419 common and preferred shares, respectively | |||
AdditionallyPs 266 per share payable on 59,999,998 preferred shares issued in June and July 2007 | ||||||
Total dividends declared | Ps 403,164 | Ps 447,486 | Ps 491,604 | |||
Dividends payable at December 31(1) | Ps 111,842 | Ps 119,701 |
(1) | The amount of the dividends payable at December 31, is recorded as accounts payable in the Consolidated Balance Sheets. | |
(2) | The amount disclosed as Total Dividends Declared in the table for 2007 differs from those disclosed in the annual report of 2006, because Bancolombia S.A. paid dividends on 59,999,998 preferred shares issued during 2007. |
F-53
Table of Contents
Notes to Consolidated Financial Statements
2007 | 2008 | |||||||
Trust: | ||||||||
Investment trusts | Ps | 39,609,384 | Ps | 42,676,646 | ||||
Commitments: | ||||||||
Unused credit card limits | Ps | 4,703,942 | Ps | 5,724,199 | ||||
Civil demands against the Bank | 874,107 | 782,444 | ||||||
Issued and confirmed letters of credit | 1,354,921 | 1,890,574 | ||||||
Uncommitted lines of credit | 865,706 | 628,066 | ||||||
Bank guarantees | 1,258,448 | 1,634,057 | ||||||
Approved credits not disbursed | 1,467,745 | 1,382,560 | ||||||
Nation account payable (546 law) | 30,371 | 28,914 | ||||||
Other | 124,195 | 942,686 | ||||||
Total | Ps | 50,288,819 | Ps | 55,690,146 | ||||
2007 | 2008 | |||||||
Memorandum accounts receivable: | ||||||||
Tax value of assets | Ps | 30,481,070 | Ps | 41,397,910 | ||||
Assets and securities given in custody | 3,411,382 | 4,940,276 | ||||||
Assets and securities given as a collateral | 3,300,348 | 2,602,771 | ||||||
Trading investments in debt securities | 1,692,960 | 2,002,743 | ||||||
Written-off assets | 1,439,114 | 1,999,111 | ||||||
Quotas of leasing to receive | 5,977,221 | 7,423,863 | ||||||
Investments held to maturity | 1,058,280 | 1,638,282 | ||||||
Adjustments for inflation of assets | 162,724 | 127,934 | ||||||
Accounts to receive yields trading investments in debt titles | 103,286 | 241,556 | ||||||
Investments available for the sale in debt titles | 1,379,980 | 1,256,763 | ||||||
Remittances sent for collection | 26,103 | 50,919 | ||||||
Amortized debt securities investment | 788,610 | 1,009,394 | ||||||
Other memorandum account receivable | 4,304,690 | 6,897,263 | ||||||
Total | Ps | 54,125,768 | Ps | 71,588,785 | ||||
Memorandum accounts payable: | ||||||||
Assets and securities received as collateral | 25,815,805 | 29,553,409 | ||||||
Qualification commercial loans | 23,711,631 | 28,494,632 | ||||||
Assets and securities received in custody | 4,816,267 | 5,395,677 | ||||||
Tax value of shareholders’ equity | 4,673,067 | 6,308,371 | ||||||
Qualification consumer loans | 6,573,200 | 7,513,317 | ||||||
Adjustment for inflation of equity | 892,909 | 891,452 | ||||||
Qualification small business loans | 131,913 | 145,518 | ||||||
Merchandise in owned warehouses | 65 | — | ||||||
Qualification financial leasing | 4,749,309 | 5,583,028 | ||||||
Qualification operating leasing | 491,941 | 732,768 | ||||||
Qualification mortgage loans | 2,803,165 | 3,324,627 | ||||||
Other memorandum account payable | 3,135,280 | 3,949,803 | ||||||
Total | Ps | 77,794,552 | Ps | 91,892,602 | ||||
Total memorandum accounts | Ps | 182,209,139 | Ps | 219,171,533 | ||||
F-54
Table of Contents
Notes to Consolidated Financial Statements
a) | Contingencies Covered by FOGAFIN: |
b) | Legal Processes |
F-55
Table of Contents
Notes to Consolidated Financial Statements
Actual | ||||||||||||||||
Initial | Exposure at | |||||||||||||||
Process | Exposure | December 31, 2008 | Allowance | Likelihood | ||||||||||||
Civil Lawsuit from Jaime Gilinski and Others | Ps | 357,000 | Ps | 357,000 | — | Remote | ||||||||||
Inversiones C.B. S.A. | 12,468 | 40,806 | — | Remote | ||||||||||||
Editorial Oveja Negra Ltda. and Jose Vicente Katerain | 10,240 | 9,635 | — | Remote | ||||||||||||
Costrucc.Rojas Jiménez & CÍA. S. EN C. | 6,277 | 6,277 | — | Remote | ||||||||||||
Ordinary process Gloria Amparo Zuluaga Arcila | 1,400 | 5,784 | — | Remote | ||||||||||||
Arbitration process CAJANAL vs Bancolombia | 34,026 | 34,026 | — | Remote | ||||||||||||
Almacenar S.A. | 92,048 | 30,902 | 20,000 | Probable | ||||||||||||
Carlos Julio Aguilar and Other | 25,232 | 30,210 | — | Remote | ||||||||||||
Invico Ltda, Dalia Bibliowicz Kaplan, Bella Bibliowicz Kaplan y Anniel Admiran Bibliowoicz Processes | 5,000 | 6,601 | 3,500 | Probable | ||||||||||||
Class action Maria Elena Urina against Barranquilla City “Municipio de Barranquilla” and Bancolombia | 6,467 | 6,467 | — | Remote | ||||||||||||
Ordinary process Ramón Orlando Pardo Osorio and Oceano Films OP Ltda. US 3000000 | 5,402 | 6,820 | — | Remote |
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Notes to Consolidated Financial Statements
F-57
Table of Contents
Notes to Consolidated Financial Statements
c) | Contingencies Related to the Purchase of 51% of Former Banco de Colombia S.A. (“Banco de Colombia”) Stock and Later Merger with Banco Industrial Colombiano (“BIC”, now Bancolombia) |
d) | National Tax and Customs Agency (“DIAN”) |
F-58
Table of Contents
Notes to Consolidated Financial Statements
F-59
Table of Contents
Notes to Consolidated Financial Statements
F-60
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Notes to Consolidated Financial Statements
F-61
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Notes to Consolidated Financial Statements
F-62
Table of Contents
Notes to Consolidated Financial Statements
F-63
Table of Contents
Notes to Consolidated Financial Statements
(1) | For more information of Commitments, see “Note 31. Differences Between Colombian Accounting Principles for Banks and U.S. GAAP- r) Guarantees”. |
F-64
Table of Contents
Notes to Consolidated Financial Statements
2006 | 2007(2) | 2008 | ||||||||||
Public services | Ps | 53,512 | Ps | 69,857 | Ps | 70,680 | ||||||
Advertising | 63,214 | 68,222 | 88,003 | |||||||||
Industry and trade, property, vehicle and other taxes | 129,141 | 147,684 | 193,628 | |||||||||
Communication, postage and freight | 52,403 | 85,042 | 104,902 | |||||||||
Insurance | 29,635 | 23,366 | 29,054 | |||||||||
Security services | 27,292 | 33,655 | 31,752 | |||||||||
Amortization of deferred charges | 40,692 | 61,143 | 73,541 | |||||||||
Rental expenses | 62,182 | 70,949 | 61,026 | |||||||||
Maintenance and repairs | 123,169 | 164,590 | 147,441 | |||||||||
Contributions and membership fees | 17,115 | 31,971 | 32,989 | |||||||||
Temporary services | 31,316 | 18,379 | 40,192 | |||||||||
Travel expenses | 22,840 | 21,999 | 22,124 | |||||||||
Professional fees | 59,506 | 79,599 | 155,000 | |||||||||
Call center services | 26,404 | 26,617 | 32,321 | |||||||||
Information processes outsourcing | 22,731 | 38,383 | 46,746 | |||||||||
Warehouse expenses | 11,777 | — | — | |||||||||
Software(1) | 24,041 | 32,175 | 8,804 | |||||||||
Joint venture SUFI — Almacenes Exito S.A. Expense | 10,950 | 14,333 | 31,481 | |||||||||
Operational expenses related with consortium | 9,138 | 10,198 | 12,115 | |||||||||
Electronic processing data | 4,934 | 3,575 | 4,663 | |||||||||
Public relation | 2,052 | 2,799 | 2,455 | |||||||||
Other(1) | 58,138 | 66,309 | 80,065 | |||||||||
Total | Ps | 882,182 | Ps | 1,070,845 | Ps | 1,268,982 | ||||||
(1) | The amount disclosed in the table for 2007 differs from those disclosed in the annual report of 2007, because they were reclassificated for comparative purposes with the information of 2008. | |
(2) | The administrative and other expenses were modified to reflect certain reclassifications made in commissions from banking services and other services, administrative and other expenses and other income that conform to the presentation of 2008 figures, in order to provide a better basis of comparison with respect to 2008 figures regarding the gains on the sale of mortgage loans. No such changes were made for 2006, as the reclassifications would not have a material impact on the figures for that period, and accordingly, would not be material for comparative purposes. Amounts reclassified as discussed in Note 2(ab). |
Year ended December 31, | ||||||||||||
2006 | 2007(3) | 2008 | ||||||||||
(Ps million) | ||||||||||||
Non-operating income (expenses): | ||||||||||||
Other income(1) | Ps | 194,589 | Ps | 93,294 | Ps | 172,550 | ||||||
Minority interest | (6,352 | ) | (13,246 | ) | (18,511 | ) | ||||||
Other expenses(2) | (149,243 | ) | (81,236 | ) | (140,662 | ) | ||||||
Total non-operating income (expenses), net | Ps | 38,994 | Ps | (1,188 | ) | Ps | 13,377 | |||||
(1) | For 2008 and 2007, includes gains on sale of foreclosed assets, property, plant and equipment and other assets, securitization residual benefit, insurance contracts sale and rent. For 2006, includes recovery of deferred tax liability ofPs 98,788 million recorded in 2005 by the Bank. | |
(2) | Other expenses include operational losses and losses from the sale of foreclosed assets, property, plant and equipment and payments for fines, sanctions, lawsuits and indemnities. |
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Notes to Consolidated Financial Statements
(3) | Non-operating income (expenses), net for the year ended 2007 was modified to reflect certain reclassifications made in commissions from banking services and other services, administrative and other expenses and other income that conform to the presentation of 2008 figures, in order to provide a better basis of comparison with respect to 2008 figures regarding the gains on the sale of mortgage loans. No such changes were made for 2006, as the reclassifications would not have a material impact on the figures for that period, and accordingly, would not be material for comparative purposes. Amounts reclassified as discussed in Note 2(ab). |
Shareholders with | ||||||||||||||||
participating stock | ||||||||||||||||
Shareholders with | lower than 10% of | |||||||||||||||
participating stock | the Bank’s capital | |||||||||||||||
equal to or higher | and with operations | |||||||||||||||
than 10% of Bank’s | Non-consolidated | Bank’s officers and | higher than 5% | |||||||||||||
capital | investments | board of directors(1) | technical equity | |||||||||||||
Balance Sheet | ||||||||||||||||
Investment securities(1) | — | 737 | — | — | ||||||||||||
Loans | 10,610 | 90,783 | 36,231 | — | ||||||||||||
Customer’s acceptances and derivatives | — | 2 | — | 107,640 | ||||||||||||
Accounts receivable | 89 | 8,632 | 4,108 | — | ||||||||||||
Total | Ps | 10,699 | Ps | 100,154 | Ps | 40,339 | Ps | 107,640 | ||||||||
Deposits(1) | 632 | 107,389 | 8,656 | 287,000 | ||||||||||||
Overnight funds | — | 448 | — | — | ||||||||||||
Accounts payable | 6 | 477 | 2,274 | — | ||||||||||||
Bonds | — | 610 | — | 35,300 | ||||||||||||
Total | Ps | 638 | Ps | 108,924 | Ps | 10,930 | Ps | 322,300 | ||||||||
Transactions | ||||||||||||||||
Income | ||||||||||||||||
Dividends received | — | 11,206 | — | — | ||||||||||||
Interest and fees | 899 | 29,639 | 3,339 | — | ||||||||||||
Other | — | 2 | — | — | ||||||||||||
Total | Ps | 899 | Ps | 40,847 | Ps | 3,339 | — | |||||||||
Expenses | ||||||||||||||||
Interest | 49 | 6,703 | 6,642 | 22,400 | ||||||||||||
Fees | — | — | 156 | — | ||||||||||||
Other | — | — | 18 | — | ||||||||||||
Total | Ps | 49 | Ps | 6,703 | Ps | 6,816 | Ps | 22,400 | ||||||||
(1) | The data presented herein for 2005 exclude the transactions with the Qualifying Special Purpose Entity — QSPE of Titularizadora Colombiana S.A. and Deceval S.A. and therefore differ from corresponding data presented in previous years. |
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Notes to Consolidated Financial Statements
Shareholders with | ||||||||||||||||
participating stock | ||||||||||||||||
Shareholders with | lower than 10% of | |||||||||||||||
participating stock | the Bank’s capital | |||||||||||||||
equal to or higher | and with operations | |||||||||||||||
than 10% of Bank’s | Non-consolidated | Bank’s officers and | higher than 5% | |||||||||||||
capital | investments | board of directors | technical equity | |||||||||||||
Balance Sheet | ||||||||||||||||
Investment securities | — | 75,546 | — | — | ||||||||||||
Loans | 390 | 80,231 | 40,393 | — | ||||||||||||
Customer’s acceptances and derivatives | 624 | 23,065 | — | 2,339 | ||||||||||||
Accounts receivable | 19 | 11,678 | 488 | — | ||||||||||||
Total | Ps | 1,033 | Ps | 190,520 | Ps | 40,881 | Ps | 2,339 | ||||||||
Deposits | 789 | 184,127 | 2,164 | 480,095 | ||||||||||||
Bonds | — | 3,000 | — | 74,567 | ||||||||||||
Total | Ps | 789 | Ps | 187,127 | Ps | 2,164 | Ps | 554,662 | ||||||||
Transactions | ||||||||||||||||
Income | ||||||||||||||||
Dividends received | — | 3,635 | — | — | ||||||||||||
Interest and fees | 53 | 234 | 61 | — | ||||||||||||
Total | Ps | 53 | Ps | 3,869 | Ps | 61 | — | |||||||||
Expenses | ||||||||||||||||
Interest | 345 | 8,881 | 521 | 35,424 | ||||||||||||
Fees | — | — | 439 | — | ||||||||||||
Total | Ps | 345 | Ps | 8,881 | Ps | 960 | Ps | 35,424 | ||||||||
Shareholders with | ||||||||||||||||
participating stock | ||||||||||||||||
Shareholders with | lower than 10% of | |||||||||||||||
participating stock | the Bank’s capital | |||||||||||||||
equal to or higher | and with operations | |||||||||||||||
than 10% of Bank’s | Non-consolidated | Bank’s officers and | higher than 5% | |||||||||||||
capital | investments | board of directors | technical equity | |||||||||||||
Balance Sheet | ||||||||||||||||
Investment securities | — | 54,331 | — | — | ||||||||||||
Loans | 15 | 21,979 | 8,020 | 296,715 | ||||||||||||
Customer’s acceptances and derivatives | 9,496 | — | — | — | ||||||||||||
Accounts receivable | 8 | 1,377 | 136 | 6,968 | ||||||||||||
Total | Ps | 9,519 | Ps | 77,687 | Ps | 8,156 | Ps | 303,683 | ||||||||
Deposits | 31,766 | 110,715 | 4,176 | 1,213,832 | ||||||||||||
Bonds | 1,947 | — | — | 94,667 | ||||||||||||
Total | Ps | 33,713 | Ps | 110,715 | Ps | 4,176 | Ps | 1,308,499 | ||||||||
F-67
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Notes to Consolidated Financial Statements
Shareholders with | ||||||||||||||||
participating stock | ||||||||||||||||
Shareholders with | lower than 10% of | |||||||||||||||
participating stock | the Bank’s capital | |||||||||||||||
equal to or higher | and with operations | |||||||||||||||
than 10% of Bank’s | Non-consolidated | Bank’s officers and | higher than 5% | |||||||||||||
capital | investments | board of directors | technical equity | |||||||||||||
Transactions | ||||||||||||||||
Income | ||||||||||||||||
Dividends received | — | 9,737 | — | — | ||||||||||||
Interest and fees | 9,532 | 4,004 | 3,420 | 26,240 | ||||||||||||
Total | Ps | 9,532 | Ps | 13,741 | Ps | 3,420 | Ps | 26,240 | ||||||||
Expenses | ||||||||||||||||
Interest | 455 | 42,114 | 2,923 | 98,727 | ||||||||||||
Fees | — | 2 | 892 | 3 | ||||||||||||
Total | Ps | 455 | Ps | 42,116 | Ps | 3,815 | Ps | 98,730 | ||||||||
F-68
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Notes to Consolidated Financial Statements
F-69
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
2006 | 2007 | 2008 | ||||||||||
Consolidated net income under Colombian GAAP | Ps | 749,529 | Ps | 1,086,923 | Ps | 1,290,643 | ||||||
a) Deferred income taxes | (132,003 | ) | (91,280 | ) | 83,358 | |||||||
b) Employee benefit plans | 10,320 | 18,127 | (18,463 | ) | ||||||||
c) Fixed Assets | (104 | ) | (151 | ) | 14,496 | |||||||
e) Allowance for loans losses, financial leases losses, foreclosed assets and other receivables | 195,549 | (69,809 | ) | (338,799 | ) | |||||||
f) Loan origination fees and costs | 16,798 | 7,241 | (26,942 | ) | ||||||||
g) Interest recognition on non-accrual loans | 2,377 | 6,832 | (78 | ) | ||||||||
h) Deferred charges | (3,130 | ) | 7,192 | 24,455 | ||||||||
i) Investment securities & derivatives | (36,235 | ) | (9,190 | ) | (141,392 | ) | ||||||
j) Investments in unaffiliated companies | (1,545 | ) | (968 | ) | (359 | ) | ||||||
k) Investments in affiliates | 6,598 | 13,321 | 33,815 | |||||||||
l) Lessor accounting | (1,703 | ) | 709 | (1,294 | ) | |||||||
m) Business combinations | ||||||||||||
m.i) Goodwill | 22,642 | 82,075 | 55,603 | |||||||||
m.ii) Intangible assets | (88,248 | ) | (42,063 | ) | (106,133 | ) | ||||||
m.iii) Fair value adjustments to assets and liabilities acquired | 186,546 | (6,860 | ) | 18,254 | ||||||||
n) Securitization performing and non-performing loans | 4,717 | 19,702 | (3,417 | ) | ||||||||
o) Foreign currency translation adjustment | 7,853 | 13,115 | (30,370 | ) | ||||||||
p) Minority interest | 4,793 | (7,965 | ) | (1,638 | ) | |||||||
r) Guarantees | (3,571 | ) | (2,549 | ) | (4,672 | ) | ||||||
s) Insurance Contracts | — | (4,945 | ) | 505 | ||||||||
u) Equity tax | — | (3,813 | ) | 2,348 | ||||||||
Consolidated net income under U.S. GAAP | Ps | 941,183 | Ps | 1,015,644 | Ps | 849,920 | ||||||
Net income from continuing operations | Ps | 988,926 | Ps | 1,071,031 | Ps | 772,684 | ||||||
Income (Loss) from operations and disposal of discontinued Operations | Ps | (47,743 | ) | Ps | (55,387 | ) | Ps | 77,236 |
F-70
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
2007 | 2008 | |||||||
Consolidated stockholders’ equity under Colombian GAAP | Ps | 5,199,270 | Ps | 6,116,845 | ||||
a) Deferred income taxes | (108,876 | ) | (51,897 | ) | ||||
b) Employee benefit plans | 4,507 | (22,131 | ) | |||||
c) Fixed assets | 38,538 | 53,034 | ||||||
d) Revaluation of assets | (319,646 | ) | (393,308 | ) | ||||
e) Allowance for loans losses, financial leases losses, foreclosed assets and other receivables | 561,442 | 229,439 | ||||||
f) Loan origination fees and costs | 77,772 | 50,830 | ||||||
g) Interest recognition on non-accrual loans | 15,217 | 15,139 | ||||||
h) Deferred charges | (11,291 | ) | (26,690 | ) | ||||
i) Investment securities & derivatives | (163,559 | ) | (238,595 | ) | ||||
j) Investments in unaffiliated companies | (14,266 | ) | (14,625 | ) | ||||
k) Investments in affiliates | 50,496 | 84,311 | ||||||
l) Lessor accounting | 937 | (357 | ) | |||||
m) Business combinations | ||||||||
m.i) Goodwill | 276,217 | 242,843 | ||||||
m.ii) Intangible assets | 487,691 | 468,546 | ||||||
m.iii) Fair value adjustments to assets and liabilities acquired | (171,222 | ) | (99,314 | ) | ||||
n) Securitization performing and non-performing loans | 30,270 | 30,493 | ||||||
p) Minority interest | (6,595 | ) | (8,233 | ) | ||||
r) Guarantees | (6,120 | ) | (10,792 | ) | ||||
s) Insurance contracts | (3,228 | ) | (2,723 | ) | ||||
738,284 | 305,970 | |||||||
Consolidated stockholders’ equity under U.S. GAAP | Ps | 5,937,554 | Ps | 6,422,815 | ||||
2007 | 2008 | |||||||
Assets: | ||||||||
Cash and due from banks | Ps | 5,285,089 | Ps | 5,641,204 | ||||
Trading account | 2,287,673 | 3,255,259 | ||||||
Investment securities, net | 2,361,663 | 3,266,001 | ||||||
Loans | 35,340,990 | 41,628,902 | ||||||
Financial lease | 4,699,764 | 5,839,524 | ||||||
Allowance for loans, financial leases losses and other receivables | (1,072,307 | ) | (2,188,949 | ) | ||||
Premises and equipment, net | 1,922,999 | 2,461,649 | ||||||
Other assets | 3,054,437 | 3,763,132 | ||||||
Total assets | Ps | 53,880,308 | Ps | 63,666,722 | ||||
F-71
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
2007 | 2008 | |||||||
Liabilities and Stockholders’ Equity: | ||||||||
Deposits | 34,356,264 | 40,381,664 | ||||||
Short term debt | 1,195,849 | 1,454,322 | ||||||
Long term debt | 7,330,902 | 9,003,090 | ||||||
Other liabilities | 4,996,708 | 6,257,069 | ||||||
Minority interest | 63,031 | 147,762 | ||||||
Shareholders’ equity | 5,937,554 | 6,422,815 | ||||||
Total Liabilities and Stockholders’ equity | Ps | 53,880,308 | Ps | 63,666,722 | ||||
2006(1) (2) | 2007(1) | 2008(1) | ||||||||||
Total interest income | Ps | 3,261,024 | Ps | 4,762,967 | Ps | 6,274,359 | ||||||
Total interest expense | (1,280,932 | ) | (1,986,746 | ) | (2,788,891 | ) | ||||||
Net interest income | 1,980,092 | 2,776,221 | 3,485,468 | |||||||||
Provision of loans, leases and other receivables | (1,722 | ) | (678,930 | ) | (1,476,368 | ) | ||||||
Net interest income after provision of loans, leases and other receivables | 1,978,370 | 2,097,291 | 2,009,100 | |||||||||
Other income | 1,151,124 | 1,608,703 | 2,066,927 | |||||||||
Other expenses | (1,940,694 | ) | (2,185,319 | ) | (2,941,328 | ) | ||||||
Income before income taxes | 1,188,800 | 1,520,675 | 1,134,699 | |||||||||
Income tax expense | (199,874 | ) | (449,644 | ) | (362,015 | ) | ||||||
Net income from continued operations | 988,926 | 1,071,031 | 772,684 | |||||||||
Discontinued Operations | (47,743 | ) | (55,387 | ) | 77,236 | |||||||
Net income | Ps | 941,183 | Ps | 1,015,644 | Ps | 849,920 | ||||||
(1) | Prior periods were reclassified due to discontinued operations of Multienlace S.A., Suinternal do Brasil Locacao de Bens S.A., PA Renting Colombia, Inversiones Valsimesa, Fundiciones y Componentes Automotores. | |
(2) | Prior periods were reclassified due to discontinued operations of Almacenar and their Subsidiaries. |
2006 | 2007 | 2008 | ||||||||||
Net income | Ps | 941,183 | Ps | 1,015,644 | Ps | 849,920 | ||||||
Adjustments to reconcile net income to net cash used by operating activities | 2,811,272 | 2,058,680 | 569,760 | |||||||||
Net cash used by operating activities | 3,752,455 | 3,074,324 | 1,419,680 | |||||||||
Net cash (used) provided in investing activities | (7,121,607 | ) | (9,139,513 | ) | (9,101,689 | ) | ||||||
Net cash provided by financing activities | 3,677,955 | 9,566,743 | 7,977,416 | |||||||||
Increase in cash and cash equivalents | Ps | 308,803 | Ps | 3,501,554 | Ps | 295,407 | ||||||
Effect of exchange rate changes on cash and cash equivalents | 2,067 | (257,357 | ) | 60,708 | ||||||||
Cash and cash equivalents at beginning of year | 1,730,022 | 2,040,892 | 5,285,089 | |||||||||
Cash and cash equivalents at end of year | Ps | 2,040,892 | Ps | 5,285,089 | Ps | 5,641,204 | ||||||
(1) | This consolidated statement of cash flow includes the following non cash transactions: Ps 4,050 related to restructured loans that were transferred to foreclosed assets and foreign exchange gain of Ps 88,783. |
F-72
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
2006 | 2007 | 2008 | ||||||||||
Balance at beginning of year | Ps | 4,125,996 | Ps | 4,549,018 | Ps | 5,937,554 | ||||||
Shares issued at market value | — | 927,612 | — | |||||||||
Net income | 941,183 | 1,015,644 | 849,920 | |||||||||
Dividends declared | (369,736 | ) | (403,164 | ) | (447,486 | ) | ||||||
Other comprehensive income (loss) | (116,229 | ) | (113,681 | ) | 53,993 | |||||||
Other movements | (32,196 | ) | (37,875 | ) | 28,834 | |||||||
Balance at end of year | Ps | 4,549,018 | Ps | 5,937,554 | Ps | 6,422,815 | ||||||
2006 | 2007 | 2008 | ||||||||||
Net Income | Ps | 941,183 | Ps | 1,015,644 | Ps | 849,920 | ||||||
Other comprehensive income, net of tax: | ||||||||||||
Unrealized gain or (loss) on securities available for sale | (146,925 | ) | (34,731 | ) | 23,281 | |||||||
Pension liability | (2,217 | ) | (10,130 | ) | (5,314 | ) | ||||||
Foreign currency translation adjustments | (7,853 | ) | (68,820 | ) | 36,026 | |||||||
Other comprehensive income (loss) | (156,995 | ) | (113,681 | ) | 53,993 | |||||||
Comprehensive income | Ps | 784,188 | Ps | 901,963 | Ps | 903,913 | ||||||
Before-Tax | (Tax Expense) | Net-of-tax | ||||||||||
Amount | or Benefit | Amount | ||||||||||
Unrealized gain or (loss) on securities available for sale | Ps | (232,271 | ) | Ps | 85,346 | Ps | (146,925 | ) | ||||
Additional pension liability | (3,487 | ) | 1,270 | (2,217 | ) | |||||||
Foreign currency translation adjustment | (7,853 | ) | — | (7,853 | ) | |||||||
Other comprehensive income (loss) | Ps | (243,611 | ) | Ps | 86,616 | Ps | (156,995 | ) | ||||
Before-Tax | (Tax Expense) | Net-of-tax | ||||||||||
Amount | or Benefit | Amount | ||||||||||
Unrealized gain or (loss) on securities available for sale | Ps | (51,632 | ) | Ps | 16,901 | Ps | (34,731 | ) | ||||
Additional pension liability | (14,672 | ) | 4,542 | (10,130 | ) | |||||||
Foreign currency translation adjustment | (68,820 | ) | — | (68,820 | ) | |||||||
Other comprehensive income (loss) | Ps | (135,124 | ) | Ps | 21,443 | Ps | (113,681 | ) | ||||
F-73
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
Before-Tax | (Tax Expense) | Net-of-tax | ||||||||||
Amount | or Benefit | Amount | ||||||||||
Unrealized gain or (loss) on securities available for sale | Ps | 39,570 | Ps | (16,289 | ) | Ps | 23,281 | |||||
Additional pension liability | (8,175 | ) | 2,861 | (5,314 | ) | |||||||
Foreign currency translation adjustment | 36,026 | — | 36,026 | |||||||||
Other comprehensive income (loss) | Ps | 67,421 | Ps | (13,428 | ) | Ps | 53,993 | |||||
Unrealized | ||||||||||||||||
Gains (Losses) | Foreign | Accumulated | ||||||||||||||
on | Pension | Currency | Other | |||||||||||||
Securities, net of | Liability, net of | Translation | Comprehensive | |||||||||||||
taxes | taxes | Adjustment | Income | |||||||||||||
Beginning balance for 2006 | 68,491 | (29,922 | ) | (10,312 | ) | 28,257 | ||||||||||
Current-period change | (146,925 | ) | (2,217 | ) | (7,853 | ) | (156,995 | ) | ||||||||
Effects of adoption FAS 158 | — | 40,766 | — | 40,766 | ||||||||||||
Ending balance for 2006 | Ps | (78,434 | ) | Ps | 8,627 | Ps | (18,165 | ) | Ps | (87,972 | ) | |||||
Beginning balance for 2007 | Ps | (78,434 | ) | Ps | 8,627 | Ps | (18,165 | ) | Ps | (87,972 | ) | |||||
Current-period change | (34,731 | ) | (10,130 | ) | (68,820 | ) | (113,681 | ) | ||||||||
Ending balance for 2007 | Ps | (113,165 | ) | Ps | (1,503 | ) | Ps | (86,985 | ) | Ps | (201,653 | ) | ||||
Beginning balance for 2008 | (113,165 | ) | (1,503 | ) | (86,985 | ) | (201,653 | ) | ||||||||
Current-period change | 23,281 | (5,314 | ) | 36,026 | 53,993 | |||||||||||
Prior years adjustments | 773 | (582 | ) | — | 191 | |||||||||||
Ending balance for 2008 | (89,111 | ) | (7,399 | ) | (50,959 | ) | (147,469 | ) | ||||||||
F-74
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
2006 | 2007 | 2008 | ||||||||||
Current income tax expense | Ps | 136,307 | Ps | 338,364 | Ps | 416,381 | ||||||
Deferred income tax (benefit) expense | 71,788 | 114,799 | (25,683 | ) | ||||||||
Total | Ps | 208,095 | Ps | 453,163 | Ps | 390,698 | ||||||
2006 | 2007 | 2008 | ||||||||||
Continuing operation income tax | Ps | 199,874 | Ps | 449,644 | Ps | 362,015 | ||||||
Discontinued operation income tax | 8,221 | 3,519 | 28,683 | |||||||||
Income tax | Ps | 208,095 | Ps | 453,163 | Ps | 390,698 | ||||||
2007 | 2008 | |||||||
Deferred tax assets and liabilities | ||||||||
Deferred tax assets: | ||||||||
Accrual of employee benefits | — | Ps | 7,746 | |||||
Allowance for loan losses | 28,527 | 90,798 | ||||||
Fixed assets | 135,192 | 117,740 | ||||||
Tax losses and excess of presumed income over ordinary income | 23,465 | 50,939 | ||||||
Allowance for foreclosed assets | 17,965 | 16,574 | ||||||
Accrued expenses | 33,779 | 42,341 | ||||||
Excess of accrued income over valuation income | 3,625 | 533 | ||||||
Business combination | 21,971 | 9,949 | ||||||
Unrealized gain on investment securities | 61,909 | 46,844 | ||||||
Deferred interest on restructured loans | 20,421 | 1,949 | ||||||
Forward, future and swaps effect | — | 465 | ||||||
Other | 20,731 | 46,750 | ||||||
Total gross deferred tax assets | 367,585 | 432,628 | ||||||
Less valuation allowance | (9,491 | ) | (63,114 | ) | ||||
Net deferred tax asset | Ps | 358,094 | Ps | 369,514 | ||||
Deferred tax liabilities: | ||||||||
Accrual of employee benefits | Ps | 1,577 | — | |||||
Fixed assets | 31,978 | 186,899 | ||||||
Allowance for loan losses | 130,448 | 85,630 | ||||||
Allowance for foreclosed assets | 26,308 | 21,358 | ||||||
Loan origination fees and cost | 24,795 | 17,567 | ||||||
Forward, future and swaps effect | 49,994 | 22,879 | ||||||
Inflation adjustments | 76,090 | 12,818 | ||||||
Business Combination | 24,842 | 23,041 | ||||||
Intangible assets | 134,233 | 123,012 | ||||||
Excess of accrued income over valuation income | 11,790 | 28,119 | ||||||
Securitization | 10,595 | 10,673 | ||||||
Unrealized gain on investment securities | — | 1,538 | ||||||
Other | 7,813 | 7,644 | ||||||
Total deferred liabilities | 530,463 | 541,178 | ||||||
Net deferred asset (liability) | Ps | (172,369 | ) | Ps | (171,664 | ) | ||
F-75
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
2006 | 2007 | 2008 | ||||||||||
Income before tax U.S. GAAP(1) | Ps | 1,149,278 | Ps | 1,468,807 | Ps | 1,240,619 | ||||||
Income tax as per statutory rate | 425,233 | 528,771 | 434,217 | |||||||||
Foreign profits taxed at other rates | — | (162,428 | ) | (13,492 | ) | |||||||
Foreign profits exempt from tax | — | 121,689 | (45,544 | ) | ||||||||
Non-deductible items / provisions | 77,002 | 72,868 | 59,596 | |||||||||
Non-taxable income | (197,587 | ) | (139,882 | ) | (114,236 | ) | ||||||
Other | (111,820 | ) | 42,363 | 16,535 | ||||||||
Increase (decrease) in tax valuation allowance | 15,267 | (10,217 | ) | 53,622 | ||||||||
Income tax | Ps | 208,095 | Ps | 453,163 | Ps | 390,698 | ||||||
(1) | It represents continuing operation and discontinued operation. |
F-76
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
Company | Open tax year | |
LOCAL SUBSIDIARIES | ||
Bancolombia | 2006 – 2008 | |
Leasing Bancolombia | 2006 – 2008 | |
Factoring Bancolombia | 2006 – 2008 | |
Fiduciaria Bancolombia | 2006 and 2008 | |
Banca de Inversión | 2006 – 2008 | |
Valores Bancolombia | 2006 – 2008 | |
Sufinanciamiento | 2006 – 2008 | |
Renting Colombia | 2006 – 2008 | |
FOREIGN SUBSIDIARIES | ||
Banco Agrícola | 2006 – 2008 |
F-77
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
F-78
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
2006 | 2007 | 2008 | ||||||||||
Components of net periodic benefit cost | ||||||||||||
Service cost | Ps | 4,277 | Ps | 3,447 | Ps | 5,039 | ||||||
Interest cost | 18,477 | 16,950 | 21,831 | |||||||||
Amortization of prior service cost | 135 | 131 | 1,217 | |||||||||
Amortization of net transition obligation (Assets) | 1,017 | 978 | 789 | |||||||||
Amortization of net (gain) or loss | (401 | ) | (3,470 | ) | (3,412 | ) | ||||||
Recognition of pension premium(1) | — | — | 23,534 | |||||||||
Adjustment to be recognized | ||||||||||||
Net periodic pension cost under U.S. GAAP | 23,505 | 18,036 | 48,998 | |||||||||
Net periodic pension cost under Colombian GAAP | 33,825 | 36,163 | 30,535 | |||||||||
Difference to be recognized under U.S. GAAP | Ps | 10,320 | Ps | 18,127 | Ps | (18,463 | ) | |||||
(1) | As of December 31, 2008, the Bank recognized accumulated reserves of prior years for pension premium plan using the actuarial methodology required by SFAS 87 and SFAS 106. |
2006 | 2007 | 2008 | ||||||||||
Change in project benefit obligation | ||||||||||||
Unfunded benefit obligation at beginning of year | Ps | 133,498 | Ps | 111,587 | Ps | 119,831 | ||||||
Recognition of pension premium(1) | — | — | 25,399 | |||||||||
Service cost | 4,277 | 3,447 | 5,039 | |||||||||
Interest cost | 18,477 | 16,950 | 21,831 | |||||||||
Actuarial (gain)/loss | (21,552 | ) | (655 | ) | 5,593 | |||||||
Effect of settlements(2) | — | (1,741 | ) | — | ||||||||
Cost of plan amendment(3) | — | 13,056 | — | |||||||||
Benefits paid | (23,113 | ) | (22,812 | ) | (23,635 | ) | ||||||
Unfunded benefit obligation at end of year | Ps | 111,587 | Ps | 119,832 | Ps | 154,058 | ||||||
Accrued benefit cost under Colombian GAAP | (112,639 | ) | (124,339 | ) | (131,927 | ) | ||||||
Difference to be recognized under U.S. GAAP Stockholders’ equity | Ps | 1,052 | Ps | 4,507 | Ps | (22,131 | ) | |||||
(1) | As of December 31, 2008, the Bank recognized reserves for pension premium plan using the actuarial methodology required by SFAS 87 and SFAS 106. | |
(2) | The effect of curtailment/settlement is related to the sale of Almacenar S.A. | |
(3) | Due to the retroactive effect of sentence 862/2006, Bancolombia was required to recognize pension benefit increases ranging from about 1% to more than 400% to approximately 123 retirees and beneficiaries. The increase in the Project Benefit Obligation as of December 31, 2007 due to this plan amendment is treated as prior service cost. |
F-79
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
2007 | 2008 | |||||||
Net Amount Recognized in the Consolidated Balance Sheet at December 31 | ||||||||
Statement of Financial Position | ||||||||
Noncurrent Assets | Ps | (6,194 | ) | Ps | (2,489 | ) | ||
Current Liabilities | 13,441 | 14,831 | ||||||
Noncurrent Liabilities | 112,585 | 141,716 | ||||||
Amount Recognized in Financial Position | Ps | 119,832 | Ps | 154,058 | ||||
Accumulated Other Comprehensive Income Net Actuarial Gain (Loss) | Ps | 12,452 | Ps | 2,460 | ||||
Net Prior Service (Cost)/Credit | (13,350 | ) | (12,118 | ) | ||||
Net Transition (Obligation) Asset | (1,415 | ) | (1,412 | ) | ||||
Total at December 31, 2008 | (2,313 | ) | (11,070 | ) | ||||
Deferred income tax | 810 | 3,671 | ||||||
Accumulated other comprehensive Income | Ps | (1,503 | ) | Ps | (7,399 | ) | ||
2007 | 2008 | |||||||
Increase or (decrease) in Accumulated Other Comprehensive Income | ||||||||
Recognized during year — Transition Obligation/(Asset) | Ps | 979 | Ps | 789 | ||||
Recognized during year — Prior Service Cost/(Credit) | 131 | 1,217 | ||||||
Recognized during year — Net Actuarial Losses/(Gains) | (3,381 | ) | (6,417 | ) | ||||
Occurring during year — Prior service cost | (13,056 | ) | — | |||||
Occurring during year — Net Actuarial (Losses)/Gains | 655 | (2,588 | ) | |||||
* Recognition of pension premium | — | (1,176 | ) | |||||
Accumulated other comprehensive Income in current year | Ps | (14,672 | ) | Ps | (8,175 | ) | ||
Net transition obligation/(asset) | Ps | 304 | ||
Net prior service cost | 1,217 | |||
Net loss/(gain) | (2,587 | ) | ||
Total | Ps | (1,066 | ) | |
2006 | 2007 | 2008 | ||||||||||
Discount rate | 8.68 | % | 9.25 | % | 9.75 | % | ||||||
Rate of compensation increases | 6.07 | % | 6.00 | % | 7.00 | % | ||||||
Rate of pension increases | 4.50 | % | 5.00 | % | 5.50 | % |
F-80
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
Pension | Other | |||||||
Benefits | Benefits(1) | |||||||
2009 | 12,993 | 13,591 | ||||||
2010 | 12,895 | 7,816 | ||||||
2011 | 12,572 | 11,332 | ||||||
2012 | 12,573 | 15,285 | ||||||
2013 | 12,445 | 19,078 | ||||||
Years 2014 - 2018 | 65,328 | 106,545 |
(1) | Includes Expected future benefit payments for Retirement premium pension plan and Leaving Indemnity plan. |
Net Income | ||||||||||||
2006 | 2007 | 2008 | ||||||||||
Items | ||||||||||||
Inflation adjustment | (104 | ) | (151 | ) | (1,914 | ) | ||||||
Capitalization of Interest Cost | — | — | 15,862 | |||||||||
Assets available for sale | — | — | 548 | |||||||||
Total | (104 | ) | (151 | ) | 14,496 | |||||||
Stockholders’equity | ||||||||
2007 | 2008 | |||||||
Items | ||||||||
Inflation adjustment | 38,538 | 36,624 | ||||||
Capitalization of Interest Cost | — | 15,862 | ||||||
Assets available for sale | — | 548 | ||||||
Total | 38,538 | 53,034 | ||||||
F-81
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
F-82
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
2007 | 2008 | |||||||
Allowance for loans, financial lease losses and foreclosed assets under Colombian GAAP | ||||||||
Allowance for loans and financial lease losses | Ps | 1,457,151 | Ps | 2,134,360 | ||||
Allowance for accrued interest and other receivables | 67,707 | 110,641 | ||||||
Allowance for foreclosed assets | 201,822 | 179,827 | ||||||
Ps | 1,726,680 | Ps | 2,424,828 | |||||
Allowance for loan losses under U.S. GAAP | ||||||||
Allowance for loans, financial lease, accrued interest losses and other related receivables(1) | 1,055,697 | 2,089,940 | ||||||
Allowance for foreclosed assets | 109,541 | 105,449 | ||||||
Ps | 1,165,238 | Ps | 2,195,389 | |||||
Difference to be recognized as an adjustment to Colombian GAAP stockholders’ equity | Ps | 561,442 | Ps | 229,439 | ||||
(1) | For 2008, The Allowance for loans, financial lease, accrued interest losses and other related receivables under U.S.GAAP differs in Ps 99,009 from the amount of Ps 2,188,949 registered in the Supplemental Consolidated Condensed Balance Sheets on the line: Allowance for loans, financial leases losses and other receivables. This difference corresponds to the following lines that impact the allowance for loan losses under U.S.GAAP and are included in these reconciliation lines: Lessor accounting Ps 3,744; Securitization non-performing and performing loans Ps 21,928; Business Combinations Ps 59,636 and Interest recognition on non-accrual loans Ps 13,701. |
F-83
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
2006 | 2007 | 2008(1) | ||||||||||
Difference recognized in net income under U.S.GAAP | ||||||||||||
Allowance for loans, financial lease losses and other receivables | Ps | 193,596 | Ps | (45,780 | ) | Ps | (314,101 | ) | ||||
Allowance for foreclosed assets | 1,953 | (24,029 | ) | (24,698 | ) | |||||||
Ps | 195,549 | Ps | (69,809 | ) | Ps | (338,799 | ) | |||||
(1) | For 2008, the difference of Ps 332,003 between the reconciliations for the years 2007, Ps 561,442, and 2008, Ps 229,439, that are recognized as adjustments to Colombian GAAP stockholders’ equity is different from the difference recognized in net income under U.S.GAAP (Ps 338,799) in the amount of Ps 6,796 due to the comprehensive income derived from the reconciliation of foreclosed assets of Banco Agrícola and Asesuisa. |
2006 | 2007 | 2008 | ||||||||||
Provision at the beginning of the period | Ps | 581,645 | Ps | 507,641 | Ps | 1,055,697 | ||||||
Provision for credit losses(1) | 1,765 | 678,967 | 1,466,085 | |||||||||
Foreign Currency translation and other adjustments | (685 | ) | (29,129 | ) | 47,512 | |||||||
Charge-offs | (145,829 | ) | (191,779 | ) | (577,123 | ) | ||||||
Recoveries of charged-off loans | 70,745 | 89,997 | 108,143 | |||||||||
Reclassifications | — | — | (10,374 | ) | ||||||||
Provision at the end of the period | Ps | 507,641 | Ps | 1,055,697 | Ps | 2,089,940 | ||||||
Gross Loans and financial leases | 24,645,574 | 37,702,624 | 44,642,570 | |||||||||
Provision at the end of the period as a percentage of gross loans | 2.06 | % | 2.80 | % | 4.68 | % | ||||||
Provision for credit losses as percentage of gross loans | 0.01 | % | 1.79 | % | 3.28 | % |
(1) | For 2008, the provision for credit losses differ in Ps 10,283 from the amount of Ps 1,476,368 registered in the Supplemental Consolidated Condensed Statements of Operations on the line: Provision of loans, leases and other receivables. This difference corresponds to: a) The amount of Ps 16,586 to the following lines that impact the allowance for loan losses under U.S.GAAP and are included in this reconciliations lines: Lessor accounting Ps 1,294; Securitization non-performing and performing loans Ps 5,318; Business Combinations Ps 8,968 and Interest recognition on non-accrual loans Ps 1,006. b) Reclassifications of recoveries of charged-offs loan in the amounts of Ps 13,726 from Discontinued operations and (Ps 20,029) from Securitization. |
F-84
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
F-85
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
• | Debt and equity securities that are purchased and held principally for the purpose of selling them in the short term are classified as “trading” securities and are reported at fair value, with gains and losses included in earnings. | ||
• | Debt and equity securities not classified as either “held to maturity” or “trading” securities are classified as “available for sale” securities and are reported at fair value, with unrealized gains and losses excluded from earnings and reported net of taxes, as a separate component of stockholders’ equity. Any loss in value of an investment considered other than temporary is recognized in earnings. |
F-86
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
Gross | Gross | |||||||||||||||
unrealized | unrealized | Cost | ||||||||||||||
Fair value | gains | losses | basis | |||||||||||||
Available for sale — Debt securities | ||||||||||||||||
December 31, 2007 | ||||||||||||||||
Securities issued or secured by Colombian government | Ps | 1,035,891 | Ps | 2,216 | Ps | (158,816 | ) | Ps | 1,192,491 | |||||||
Securities issued or secured by the Central Bank | 586,284 | 59 | (155 | ) | 586,380 | |||||||||||
Securities issued or secured by government entities | 232,840 | 389 | (5,444 | ) | 237,895 | |||||||||||
Securities issued or secured by financial entities | 166,920 | 2,991 | (728 | ) | 164,657 | |||||||||||
Securities issued or secured by foreign governments | 444,405 | 3,200 | (1,593 | ) | 442,798 | |||||||||||
Other investments | 56,946 | 173 | (440 | ) | 57,213 | |||||||||||
Total | Ps | 2,523,288 | Ps | 9,028 | Ps | (167,176 | ) | Ps | 2,681,434 | |||||||
Gross | Gross | |||||||||||||||
unrealized | unrealized | Cost | ||||||||||||||
Fair value | gains | losses | basis | |||||||||||||
Available for sale — Debt securities | ||||||||||||||||
December 31, 2008 | ||||||||||||||||
Securities issued or secured by Colombian government | Ps | 942,994 | Ps | 1,529 | Ps | (117,012 | ) | Ps | 1,058,477 | |||||||
Securities issued or secured by government entities | 435,515 | 96 | (10,868 | ) | 446,287 | |||||||||||
Securities issued or secured by other financial entities | 407,369 | 16,132 | (820 | ) | 392,057 | |||||||||||
Securities issued or secured by foreign governments | 684,404 | 7,494 | (36,854 | ) | 713,764 | |||||||||||
Securities issued or secured by the El Salvador Central Bank | 669,629 | 4 | (723 | ) | 670,348 | |||||||||||
Other investments | 47,795 | 2,686 | (446 | ) | 45,555 | |||||||||||
Total | Ps | 3,187,706 | Ps | 27,941 | Ps | (166,723 | ) | Ps | 3,326,488 | |||||||
Gross | Gross | |||||||||||||||
unrealized | unrealized | Cost | ||||||||||||||
Fair value | gains | losses | basis | |||||||||||||
Available for sale — Equity securities | ||||||||||||||||
December 31, 2007 | ||||||||||||||||
Inmobiliaria Cadenalco | Ps | 4,377 | Ps | 1,886 | — | Ps | 2,491 | |||||||||
Bolsa de Valores de Colombia | 4,877 | 174 | — | 4,703 | ||||||||||||
Total | Ps | 9,254 | Ps | 2,060 | — | Ps | 7,194 | |||||||||
Gross | Gross | |||||||||||||||
unrealized | unrealized | Cost | ||||||||||||||
Fair value | gains | losses | basis | |||||||||||||
Available for sale — Equity securities | ||||||||||||||||
December 31, 2008 | ||||||||||||||||
Inmobiliaria Cadenalco | Ps | 4,552 | Ps | 2,065 | — | Ps | 2,487 | |||||||||
Bolsa de Valores de Colombia | 16,082 | 2,299 | — | 13,783 | ||||||||||||
Total | Ps | 20,634 | Ps | 4,364 | — | Ps | 16,270 | |||||||||
F-87
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
Available for sale | ||||||||
Amortized | Fair | |||||||
cost | value | |||||||
Due in one year or less | Ps | 1,734,249 | Ps | 1,726,937 | ||||
Due from one year to five years | 780,465 | 738,643 | ||||||
Due from five years to ten years | 569,972 | 501,198 | ||||||
Due more than ten years | 241,802 | 220,928 | ||||||
Total | Ps | 3,326,488 | Ps | 3,187,706 | ||||
Gross | ||||||||||||||||
unrealized | Cost | |||||||||||||||
Fair value | losses | basis | ||||||||||||||
Available for Sale | ||||||||||||||||
December 31, 2008 | ||||||||||||||||
Securities issued or secured by Colombian government | Ps | 65,155 | Ps | (2,044 | ) | Ps | 67,199 | |||||||||
Securities issued or secured by government entities | 407,868 | (6,213 | ) | 414,081 | ||||||||||||
Securities issued or secured by other financial entities | 18,294 | (220 | ) | 18,514 | ||||||||||||
Securities issued or secured by foreign governments | 128,832 | (24,675 | ) | 153,507 | ||||||||||||
Securities issued or secured by the El Salvador Central Bank | 649,624 | (685 | ) | 650,309 | ||||||||||||
Other investments | 13,517 | (66 | ) | 13,583 | ||||||||||||
Total | Ps | 1,283,290 | Ps | (33,903 | ) | Ps | 1,317,193 | |||||||||
Gross | ||||||||||||
unrealized | Cost | |||||||||||
Fair value | losses | basis | ||||||||||
Available for Sale | ||||||||||||
December 31, 2008 | ||||||||||||
Securities issued or secured by Colombian government | Ps | 847,474 | Ps | (114,968 | ) | Ps | 962,442 | |||||
Securities issued or secured by government entities | 27,318 | (4,655 | ) | 31,973 | ||||||||
Securities issued or secured by other financial entities | 10,970 | (600 | ) | 11,570 | ||||||||
Securities issued or secured by foreign governments | 40,565 | (12,179 | ) | 52,744 | ||||||||
Securities issued or secured by the El Salvador Central Bank | 19,146 | (38 | ) | 19,184 | ||||||||
Other investments | 10,658 | (380 | ) | 11,038 | ||||||||
Total | Ps | 956,131 | Ps | (132,820 | ) | Ps | 1,088,951 | |||||
F-88
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
a. | the length of time and the extent to which the market value of the security has been less than cost; | ||
b. | the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer (such as changes in technology that may impair the earnings potential of the investment, or the discontinuance of a segment of a business that may affect the future earnings potential); or | ||
c. | the intent and ability of the Bank to retain its investment in the issuer for a period of time that allows for any anticipated recovery in market value. |
F-89
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
2006 | 2007 | 2008 | ||||||||||
Investments | Ps | (45,682 | ) | Ps | 2,453 | Ps | 28,978 | |||||
Derivatives | 20,516 | (1,627 | ) | (162,055 | ) | |||||||
Changes in foreign currency exchange rates | (11,069 | ) | (10,016 | ) | (8,315 | ) | ||||||
Ps | (36,235 | ) | Ps | (9,190 | ) | Ps | (141,392 | ) | ||||
2007 | 2008 | |||||||
Investments | Ps | (161,777 | ) | Ps | (74,759 | ) | ||
Derivatives | (1,782 | ) | (163,837 | ) | ||||
Ps | (163,559 | ) | Ps | (238,596 | ) | |||
F-90
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
2007 | 2008 | |||||||
Total minimum lease payments to be received | Ps | 6,057,324 | Ps | 7,373,767 | ||||
Less: Allowance for uncollectibles(1) | (95,047 | ) | (138,776 | ) | ||||
Net minimum lease payments receivable | 5,962,277 | 7,234,991 | ||||||
Estimated residual values of leased property | 369,183 | 605,645 | ||||||
Less: Unearned income | (1,671,907 | ) | (2,139,888 | ) | ||||
Net investment in direct financial leases | Ps | 4,659,553 | Ps | 5,700,748 | ||||
(1) | The allowance for uncollectibles is registered in the Supplemental Consolidated Condensed Balance Sheets (See “Note 31. Differences Between Colombian Accounting Principles for Banks and U.S. GAAP — c) Supplemental Consolidated Condensed Financial Statements under U.S.GAAP — Supplemental Consolidated Condensed Balance Sheets — Allowance for loans, financial leases losses and other receivables”). |
Year Ended December 31, | Financial leases | Operating Leases | ||||||
2009 | Ps | 478,956 | Ps | 150,060 | ||||
2010 | 863,154 | 129,197 | ||||||
2011 | 1,364,750 | 98,971 | ||||||
2012 | 1,299,374 | 49,110 | ||||||
2013 | 1,306,811 | 6,442 | ||||||
Later years, through 2014 | 2,060,722 | 1,573 | ||||||
Total minimum future lease payments to be received | Ps | 7,373,767 | Ps | 435,353 | ||||
F-91
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
m) | Business combinations |
F-92
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
Fair value of assets acquired and liabilities | ||||
assumed under U.S. GAAP from Banagrícola | ||||
during 2007 | ||||
Total Purchase Price | Ps | 1,816,219 | ||
Assets acquired | 7,072,642 | |||
Premises and equipment, net | 188,500 | |||
Liabilities assumed | 6,457,732 | |||
Net Assets Acquired | Ps | 803,410 | ||
Excess of cost over the fair value of acquired net assets | 1,012,809 | |||
Intangible Assets | 365,849 | |||
Goodwill | Ps | 646,960 | ||
2006 | ||||
U.S. GAAP Net income | Ps | 1,114,121 | ||
Revenues | 2,918,628 | |||
Earnings per share | Ps | 2,186 |
2007 | ||||
U.S. GAAP Net income | Ps | 1,147,510 | ||
Revenues | 3,822,759 | |||
Earnings per share | Ps | 2,251 |
F-93
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
Fair value of assets acquired and liabilities | ||||
assumed under U.S. GAAP from Comercia | ||||
as of April 30, 2006 | ||||
Total Purchase Price, Net of Cash | Ps | 37,101 | ||
Assets acquired | 161,407 | |||
Premises and equipment, net | 3,756 | |||
Liabilities assumed | 143,116 | |||
Net Assets Acquired | Ps | 22,047 | ||
Excess of cost over the fair value of acquired net assets | 15,054 | |||
Intangible Asset | 7,267 | |||
Goodwill | Ps | 7,787 | ||
F-94
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
2006 | 2007 | 2008 | ||||||||||
Goodwill U.S. GAAP | ||||||||||||
Balance at beginning of year | Ps | 569,748 | Ps | 577,535 | Ps | 1,382,159 | ||||||
Reclassifications | — | 132,243 | (40,690 | ) | ||||||||
Additions | 7,787 | 636,186 | 2,947 | |||||||||
Foreign currency adjustment | — | 36,195 | 77,914 | |||||||||
Balance at end of year | Ps | 577,535 | Ps | 1,382,159 | Ps | 1,422,330 | ||||||
Goodwill under Colombian GAAP | 34,371 | 973,699 | 1,008,089 | |||||||||
Difference to be recognized under U.S. GAAP (1) (2) | Ps | 543,164 | Ps | 408,460 | Ps | 414,241 | ||||||
(1) | For 2007 this adjustment is reflected in the line goodwill of the reconciliation of stockholders equity for Ps 276,217 and as part of the line revaluation of assets for Ps 132,243. | |
(2) | For 2008 this adjustment is reflected in the line goodwill of the reconciliation of stockholders equity for Ps 242,843 and as part of the line revaluation of assets for Ps 171,398. |
F-95
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
December 31, | December 31, | December 31, | ||||||||||
2006 | 2007 | 2008 | ||||||||||
Corporate and Governmental Banking | 254,233 | 333,661 | 399,583 | |||||||||
Retail and Small Business Banking | 186,989 | 657,496 | 694,508 | |||||||||
Treasury | — | 122,446 | — | |||||||||
Offshore Commercial Banking | 31,534 | 31,534 | 31,534 | |||||||||
Leasing | 54,238 | 54,238 | 54,238 | |||||||||
All other segments(1) | 50,541 | 182,784 | 242,467 | |||||||||
Total Goodwill(2) | Ps | 577,535 | Ps | 1,382,159 | Ps | 1,422,330 | ||||||
(1) | This segment includes trust, brokerage, insurance, pensions, construction banking and corporate headquarters. | |
(2) | The Bank has modified the distribution of the goodwill by segments in order to be consistent with the segments presented in the note w) Segment Disclosure. |
• | The present value of the brand is determined based on its potential to generate future cash flow. |
• | The royalty stream that the business would hypothetically earn from its brand can be reasonably estimated (it assumes that future royalties can in some way be predicted). |
• | Cash flows are discounted in order to arrive to a present value. |
• | Capital costs and rates of return can be properly estimated. |
• | The royalty stream that the business would hypothetically earn during the final year of the period in question can be considered a perpetuity. |
F-96
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
• | Retail banking |
• | Commercial banking |
• | Offshore commercial banking. |
2007 | 2008 | |||||||
Intangible Assets | ||||||||
Balance at beginning of year | Ps | 142,099 | Ps | 487,691 | ||||
Additions | 365,849 | — | ||||||
Reclassifications(1) | — | 45,951 | ||||||
Amortization | (42,063 | ) | (79,578 | ) | ||||
Impairment | — | (26,555 | ) | |||||
Foreign currency translation adjustment (2) (3) | 21,806 | 41,037 | ||||||
Balance at end of year | Ps | 487,691 | Ps | 468,546 | ||||
(1) | It corresponds to the recognition of the brand of Banco Agrícola from goodwill to intangible of finite life as a result of the initial decision of the Bank’s management. | |
(2) | The foreign currency translation adjustment for the amortization expense amounts Ps 4,858. | |
(3) | The foreign currency translation adjustment related to the carrying amount is Ps 45,620. |
F-97
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
December 31, 2007 | December 31, 2008 | |||||||||||||||||||||||
Gross carrying | Accumulated | Gross carrying | Accumulated | |||||||||||||||||||||
amount | amortization | Impairment | amount | amortization | Impairment | |||||||||||||||||||
Non-Amortizable intangible assets | Ps | 30,407 | — | — | Ps | 26,555 | — | 26,555 | ||||||||||||||||
Amortizable intangible assets | Ps | 520,781 | Ps | 63,222 | — | Ps | 616,204 | Ps | 147,658 | |||||||||||||||
Weight useful life | ||||||||
December 31, 2008 | (months) | |||||||
Brands | Ps | 79,813 | 60 | |||||
Service asset | 6,206 | 169 | ||||||
Asset management | 30,004 | 125 | ||||||
Benefit associated to Loans | 77,354 | 201 | ||||||
Core Deposits | 135,587 | 151 | ||||||
Customer relationship Conavi and Corfinsura | 22,400 | 105 | ||||||
Customer relationship Factoring Bancolombia | 7,267 | 48 | ||||||
Customer relationship Conglomerado Banagrícola | 199,134 | 159 | ||||||
Value of business acquired | 80,115 | 120 | ||||||
Others | 4,879 | 105 | ||||||
TOTAL | Ps | 642,759 | ||||||
Fiscal year ending | Aggregate amortization | |||
December 31, | expense | |||
2009 | Ps | 71,798 | ||
2010 | 66,392 | |||
2011 | 61,712 | |||
2012 | 49,040 | |||
2013 | 39,172 | |||
Total | Ps | 288,114 | ||
F-98
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
F-99
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
Allowance for | ||||||||||||
Assets | Liabilities | loan losses | ||||||||||
Ps | 1,882,256 | Ps | 873,056 | Ps | 16,045 | |||||||
F-100
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
Net Unrealized | Fair | |||||||||||
Amortized Cost | Gain/(Loss) | Value | ||||||||||
Available for Sale Securities | Ps | 243,502 | Ps | 14,864 | Ps | 258,366 | ||||||
Fair | ||||
Value | ||||
Trading Securities | Ps | 30,179 | ||
F-101
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
2006 | 2007 | 2008 | ||||||||||
Profit (losses) from discontinued operations before income taxes | Ps | (39,522 | ) | Ps | (51,868 | ) | Ps | 105,919 | ||||
Income taxes (benefit) expense | 8,221 | 3,519 | 28,683 | |||||||||
Profit (losses) from discontinued operations | Ps | (47,743 | ) | Ps | (55,387 | ) | Ps | 77,236 | ||||
F-102
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
Maximum potential amount of | ||||||||||||||||||||||||||||||||
Expire within one year | Expire after one year | Total amount outstanding | future payments | |||||||||||||||||||||||||||||
2007 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | |||||||||||||||||||||||||
Financial standby letters of credit | Ps | 1,007,038 | Ps | 1,577,231 | Ps | 347,883 | Ps | 313,343 | Ps | 1,354,921 | Ps | 1,890,574 | Ps | 1,354,921 | Ps | 1,890,574 | ||||||||||||||||
Bank guarantees | 992,467 | 1,106,968 | 265,981 | 527,089 | 1,258,448 | 1,634,057 | 1,258,448 | 1,634,057 | ||||||||||||||||||||||||
Total | Ps | 1,999,505 | Ps | 2,684,199 | Ps | 613,864 | Ps | 840,432 | Ps | 2,613,369 | Ps | 3,524,631 | Ps | 2,613,369 | Ps | 3,524,631 | ||||||||||||||||
F-103
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
F-104
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
F-105
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
F-106
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
F-107
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
Fair value measurements using | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Gross inventory | Net balance | ||||||||||||||||
Assets | ||||||||||||||||||||
Trading account | Ps | 1,098,091 | Ps | 1,437,272 | Ps | 79,391 | Ps | 2,614,754 | Ps | 2,614,754 | ||||||||||
Investment securities | ||||||||||||||||||||
Debt securities | 891,755 | 1,215,553 | 967,517 | 3,074,825 | 3,074,825 | |||||||||||||||
Equity securities | 16,082 | 4,552 | — | 20,634 | 20,634 | |||||||||||||||
Derivatives | — | 303,680 | 4,518,725 | 4,822,405 | 4,822,405 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Derivatives | — | (271,972 | ) | (4,498,747 | ) | (4,770,719 | ) | (4,770,719 | ) | |||||||||||
Ps | 2,005,928 | Ps | 2,689,085 | Ps | 1,066,886 | Ps | 5,761,899 | Ps | 5,761,899 | |||||||||||
% total | 34.81 | % | 46.67 | % | 18.52 | % | ||||||||||||||
Trading account | Available for sale | Derivatives | ||||||||||
Balance as of January 1, 2008 | Ps | 112,541 | Ps | 626,356 | Ps | 208,874 | ||||||
Total gain or losses (realised / unrealised): | ||||||||||||
Included in earnings | 12,987 | 70,979 | 5,298 | |||||||||
Included in other comprehensive income | (1,013 | ) | ||||||||||
Purchase, issuance and settlements | (46,137 | ) | 271,195 | (192,833 | ) | |||||||
Transfer in to/(out) of Level 3 | (1,361 | ) | ||||||||||
Balance as of December 31, 2008 | Ps | 79,391 | Ps | 967,517 | Ps | 19,978 | ||||||
F-108
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
Fair value measurements using | Total gain | |||||||||||||||||||
Year end 31/12/2008 | Level 1 | Level 2 | Level 3 | (losses) | ||||||||||||||||
Collateralized loans | 200,730 | (79,054 | ) |
December 31, 2007 | December 31, 2008 | |||||||||||||||
Colombian | Colombian | |||||||||||||||
GAAP | Estimated | GAAP | Estimated | |||||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||||
Financial assets | ||||||||||||||||
Cash and due from banks | Ps | 5,228,387 | Ps | 5,228,387 | Ps | 5,619,575 | Ps | 5,619,575 | ||||||||
Investment securities, net | 5,774,251 | 4,562,689 | 7,278,276 | 7,203,517 | ||||||||||||
Loans and accrued interest receivable on loans, net | 36,644,033 | 38,954,179 | 43,013,868 | 41,499,564 | ||||||||||||
Customers’ acceptances | 55,208 | 55,208 | 56,935 | 56,935 | ||||||||||||
Derivatives, net(1) | 140,797 | 139,015 | 215,523 | 51,686 | ||||||||||||
Financial liabilities: | ||||||||||||||||
Deposits | Ps | 34,558,995 | Ps | 34,654,832 | Ps | 18,652,738 | Ps | 18,872,980 | ||||||||
Overnight funds | 2,020,366 | 2,020,366 | 2,573,591 | 2,573,591 | ||||||||||||
Bank acceptances outstanding | 55,208 | 55,208 | 56,935 | 56,935 | ||||||||||||
Interbank borrowings | 1,525,894 | 1,525,894 | 2,100,428 | 2,100,428 | ||||||||||||
Borrowings from development and other domestic banks | 3,371,003 | 3,371,003 | 3,905,021 | 3,905,021 | ||||||||||||
Long term debt | 2,866,462 | 3,675,395 | 3,675,613 | 3,665,997 | ||||||||||||
(1) | Under Colombian GAAP, the Bank’s derivative instruments are grouped and presented net. For U.S. GAAP purposes, the amount presented includes derivative assets for Ps 4,822,405 and Ps 282,953, derivative liabilities Ps. (4,770,719) and (143,398) for years ended in 2008 and 2007, respectively. |
F-109
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
2006 | 2007 | 2008 | ||||||||||
U.S. GAAP consolidated net income | Ps | 941,183 | Ps | 1,015,644 | Ps | 849,920 | ||||||
Less preferred share dividends | 116,041 | 157,974 | 173,548 | |||||||||
Income attributable to common stockholders | 825,142 | 857,670 | 676,372 | |||||||||
Income from continuing operations attributable to common shareholders | 872,885 | 913,057 | 599,135 | |||||||||
Income (loss) from operations and disposal of discontinued operations | (47,743 | ) | (55,387 | ) | 77,236 | |||||||
Income attributable to common shareholders | 825,142 | 857,670 | 676,372 | |||||||||
Weighted average number of common shares outstanding used in basic EPS calculation(in millions) | 510 | 510 | 510 | |||||||||
Basic and Diluted earnings per share (U.S. GAAP): | ||||||||||||
Income from continuing operations | 1,712.53 | 1,791.35 | 1,174.77 | |||||||||
Income (loss) from operations and disposal of discontinued operations | (93.66 | ) | (108.67 | ) | 151.44 | |||||||
Income attributable to common shareholders | Ps | 1,618.87 | Ps | 1,682.68 | Ps | 1,326.21 | ||||||
F-110
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
2006(2) | ||||||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||
Retail and Small | and | Offshore | ||||||||||||||||||||||||||
Business | Governmental | Commercial | All other | |||||||||||||||||||||||||
Banking | Banking | Treasury | Banking | Leasing | Segments | Total | ||||||||||||||||||||||
Revenues from external customers | Ps | 547,311 | Ps | 169,871 | — | Ps | 130 | Ps | 38,515 | Ps | 222,699 | Ps | 978,526 | |||||||||||||||
Revenues (expenses) from transactions with other operating segments of the Bank | — | 60,861 | — | 12,493 | 12,691 | 73,058 | 159,103 | |||||||||||||||||||||
Interest income | 1,201,392 | 864,665 | 343,496 | 495,222 | 437,977 | 274,651 | 3,617,403 | |||||||||||||||||||||
Interest expense | 265,393 | 339,072 | 246,058 | 123,286 | 254,752 | 123,645 | 1,352,206 | |||||||||||||||||||||
Net interest revenue | 935,999 | 525,593 | 97,438 | 371,936 | 183,225 | 151,006 | 2,265,197 | |||||||||||||||||||||
Depreciation and amortization expense | 26,888 | 29,804 | 8,956 | 988 | 10,237 | 57,044 | 133,917 | |||||||||||||||||||||
Provision for loan losses | 130,613 | (50,742 | ) | (30,134 | ) | 13,316 | 51,741 | 87,978 | 202,772 | |||||||||||||||||||
Administrative and other expense | 1,029,375 | 286,855 | 65,064 | 9,099 | 68,689 | 280,414 | 1,739,496 | |||||||||||||||||||||
Income tax expense or benefit | 33,707 | 36,694 | 6,629 | — | 36,475 | 61,373 | 174,878 | |||||||||||||||||||||
Other income or expense, net | (568 | ) | (116,209 | ) | — | (223,056 | ) | 12,138 | 84,564 | (243,131 | ) | |||||||||||||||||
Segment profit before distribution of income (expense) for treasury funds | 262,159 | 337,505 | 46,923 | 138,100 | 79,427 | 44,518 | 908,632 | |||||||||||||||||||||
Distribution of income (expense) for treasury funds(1) | 77,399 | (40,964 | ) | (8,089 | ) | — | — | (28,346 | ) | — | ||||||||||||||||||
Segment profit | Ps | 339,558 | Ps | 296,541 | Ps | 38,834 | Ps | 138,100 | Ps | 79,427 | Ps | 16,172 | Ps | 908,632 | ||||||||||||||
Segments assets | Ps | 10,142,901 | Ps | 10,858,235 | Ps | 3,090,780 | Ps | 4,216,594 | Ps | 4,528,718 | Ps | 5,418,802 | Ps | 38,256,030 | ||||||||||||||
F-111
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
2007(2) (3) | ||||||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||
Retail and Small | and | Offshore | ||||||||||||||||||||||||||
Business | Governmental | Commercial | All other | |||||||||||||||||||||||||
Banking | Banking | Treasury | Banking | Leasing | Segments | Total | ||||||||||||||||||||||
Revenues from external customers | Ps | 801,924 | Ps | 179,491 | Ps | (2,302 | ) | Ps | 11,858 | Ps | 84,086 | Ps | 261,692 | Ps | 1,336,749 | |||||||||||||
Revenues (expenses) from transactions with other operating segments of the Bank | (10,844 | ) | 25,309 | 10,655 | 148,783 | 1,345 | 317,738 | 492,986 | ||||||||||||||||||||
Interest income | 2,019,666 | 1,385,482 | 507,934 | 299,067 | 624,606 | 424,687 | 5,261,442 | |||||||||||||||||||||
Interest expense | 501,024 | 449,711 | 552,969 | 205,806 | 392,740 | 42,497 | 2,144,747 | |||||||||||||||||||||
Net interest revenue | 1,518,642 | 935,771 | (45,035 | ) | 93,261 | 231,866 | 382,190 | 3,116,695 | ||||||||||||||||||||
Depreciation and amortization expense | 52,538 | 41,949 | 10,083 | 20,819 | 24,369 | 85,421 | 235,179 | |||||||||||||||||||||
Provision for loan losses | 421,576 | 187,766 | (14,634 | ) | 19,271 | 108,538 | 26,111 | 748,628 | ||||||||||||||||||||
Administrative and other expense | 1,351,951 | 313,805 | 35,186 | 10,786 | 77,778 | 309,496 | 2,099,002 | |||||||||||||||||||||
Income tax expense or benefit | 109,999 | 89,947 | 52,370 | — | 35,990 | 73,577 | 361,883 | |||||||||||||||||||||
Other income or expense, net | 43,610 | 14,313 | 21 | 18,067 | 61,258 | (59,098 | ) | 78,171 | ||||||||||||||||||||
Segment profit before distribution of income (expense) for treasury funds | 417,268 | 521,417 | (119,666 | ) | 221,093 | 131,880 | 407,917 | 1,579,909 | ||||||||||||||||||||
Distribution of income (expense) for treasury funds(1) | (102,762 | ) | (188,467 | ) | 362,750 | — | — | (71,521 | ) | — | ||||||||||||||||||
Segment profit | Ps | 314,506 | Ps | 332,950 | Ps | 243,084 | Ps | 221,093 | Ps | 131,880 | Ps | 336,396 | Ps | 1,579,909 | ||||||||||||||
Segment assets | Ps | 18,453,289 | Ps | 16,412,411 | Ps | 3,806,189 | Ps | 6,847,345 | Ps | 5,898,303 | Ps | 7,745,272 | Ps | 59,162,809 | ||||||||||||||
F-112
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Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
2008(2) | ||||||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||
Retail and Small | and | Offshore | ||||||||||||||||||||||||||
Business | Governmental | Commercial | All other | |||||||||||||||||||||||||
Banking | Banking | Treasury | Banking | Leasing | Segments | Total | ||||||||||||||||||||||
Revenues from external customers | Ps | 913,333 | Ps | 206,529 | Ps | 14,244 | Ps | 5,303 | Ps | 245,739 | Ps | 318,071 | Ps | 1,703,219 | ||||||||||||||
Revenues (expenses) from transactions with other operating segments of the Bank | (11,117 | ) | 57,992 | (5,175 | ) | 38,642 | 8,427 | 167,611 | 256,380 | |||||||||||||||||||
Interest income | 2,730,204 | 1,839,523 | 602,931 | 260,652 | 848,623 | 1,024,001 | 7,305,934 | |||||||||||||||||||||
Interest expense | 602,384 | 674,548 | 779,047 | 214,825 | 561,778 | 119,748 | 2,952,330 | |||||||||||||||||||||
Net interest revenue | 2,127,820 | 1,164,975 | (176,116 | ) | 45,827 | 286,845 | 904,253 | 4,353,604 | ||||||||||||||||||||
Depreciation and amortization expense | 51,882 | 43,625 | 8,565 | 57,415 | 99,022 | 52,134 | 312,643 | |||||||||||||||||||||
Provision for loan losses | 802,255 | 330,148 | (11,261 | ) | 16,001 | 143,234 | 38,352 | 1,318,729 | ||||||||||||||||||||
Administrative and other expense | 1,595,323 | 370,408 | 67,334 | 12,035 | 157,656 | 369,750 | 2,572,506 | |||||||||||||||||||||
Income tax expense or benefit | 125,978 | 118,522 | 74,679 | — | 35,553 | 118,561 | 473,293 | |||||||||||||||||||||
Other income or expense, net | 67,372 | 27,171 | (123 | ) | 19,464 | 54,975 | (257,868 | ) | (89,009 | ) | ||||||||||||||||||
Segment profit before distribution of income (expense) for treasury funds | 521,970 | 593,964 | (306,487 | ) | 23,785 | 160,521 | 553,270 | 1,547,023 | ||||||||||||||||||||
Distribution of income (expense) for treasury funds(1) | (140,439 | ) | (227,935 | ) | 532,594 | — | — | (164,220 | ) | — | ||||||||||||||||||
Segment profit | Ps | 381,531 | Ps | 366,029 | Ps | 226,107 | Ps | 23,785 | Ps | 160,521 | Ps | 389,050 | Ps | 1,547,023 | ||||||||||||||
Segment assets | Ps | 20,533,592 | Ps | 20,968,208 | Ps | 3,285,957 | Ps | 7,508,606 | Ps | 7,131,928 | Ps | 10,674,799 | Ps | 70,103,090 | ||||||||||||||
(1) | These costs are calculated based on the funds that segments use or provide. Those do not have an impact in the final result. | |
(2) | The methodology used for segment disclosure was changed for purposes of comparability. The segments Retail and Small Business Banking were combined in a single segment. The segments Corporate Banking and Governmental Banking were also combined in a single segment. | |
(3) | The segment disclosure was modified to reflect certain reclassifications made in commissions from banking services and other services, administrative and other expenses and other income that conform to the presentation of 2008 figures, in order to provide a better basis of comparison with respect to 2008 figures regarding the gains on the sale of mortgage loans. No such changes were made for 2006, as the reclassifications would not have a material impact on the figures for that period, and accordingly, would not be material for comparative purposes. |
F-113
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
2006 | 2007(4) | 2008 | ||||||||||
Revenues | ||||||||||||
Revenues for reportable segments(1) | Ps | 4,755,032 | Ps | 7,091,177 | Ps | 9,265,533 | ||||||
Non-operating income(2) | (372,237 | ) | (161,201 | ) | (596,387 | ) | ||||||
Elimination of intersegment revenues | (159,103 | ) | (492,986 | ) | (256,380 | ) | ||||||
Total revenues for reportable segments(3) | Ps | 4,223,692 | Ps | 6,436,990 | Ps | 8,412,766 | ||||||
Profit or Loss | ||||||||||||
Segment Profit | Ps | 908,632 | Ps | 1,579,909 | Ps | 1,547,023 | ||||||
Elimination of inter-segment profits | (159,103 | ) | (492,986 | ) | (256,380 | ) | ||||||
Net income | Ps | 749,529 | Ps | 1,086,923 | Ps | 1,290,643 | ||||||
Assets | ||||||||||||
Segments Assets | Ps | 38,256,030 | Ps | 59,162,809 | Ps | 70,103,090 | ||||||
Elimination of inter-segment assets | (3,767,334 | ) | (7,011,160 | ) | (8,320,011 | ) | ||||||
Consolidated total | Ps | 34,488,696 | Ps | 52,151,649 | Ps | 61,783,079 | ||||||
(1) | Total revenues for reportable segments includes Revenues from external customers, revenues and expenses from transactions with other operating segments of the same enterprise and interest income. | |
(2) | Non-operating income represents other income classified as revenue for segment reporting purposes. | |
(3) | Total revenues for reportable segments include interest, fees, other services and other operating income. | |
(4) | The segment disclosure for the year ended 2007 was modified to reflect certain reclassifications made in commissions from banking services and other services, administrative and other expenses and other income that conform to the presentation of 2008 figures, in order to provide a better basis of comparison with respect to 2008 figures regarding the gains on the sale of mortgage loans. No such changes were made for 2006, as the reclassifications would not have a material impact on the figures for that period, and accordingly, would not be material for comparative purposes. |
As of December 31, | ||||||||||||||||
2007(2) | 2008 | |||||||||||||||
Long | Long | |||||||||||||||
Geographic Information | Revenues | Term - Assets(1) | Revenues | Term - Assets(1) | ||||||||||||
Colombia | Ps | 5,540,069 | Ps | 1,202,108 | Ps | 7,558,997 | Ps | 1,718,190 | ||||||||
Panama and Cayman Islands | 515,749 | 10,242 | 260,282 | 10,476 | ||||||||||||
Puerto Rico | 51,765 | 164 | 39,191 | 238 | ||||||||||||
Perú | 357 | 6,706 | 8,319 | 22,453 | ||||||||||||
El Salvador | 774,026 | 143,658 | 759,587 | 148,422 | ||||||||||||
USA | 48,010 | 115 | 42,770 | 199 | ||||||||||||
Total | 6,929,976 | 1,362,993 | 8,669,146 | 1,899,978 | ||||||||||||
Eliminations of intersegment operations | (492,986 | ) | 11 | (256,380 | ) | 2,674 | ||||||||||
Total, net | Ps | 6,436,990 | Ps | 1,363,004 | Ps | 8,412,766 | Ps | 1,902,652 | ||||||||
(1) | Included foreclosed assets, net, and property, plant and equipment, net. | |
(2) | The segment disclosure for the year ended 2007 was modified to reflect certain reclassifications made in commissions from banking services and other services, administrative and other expenses and other income that conform to the presentation of 2008 figures, in order to provide a better basis of comparison with respect to 2008 figures regarding the gains on the sale of mortgage loans. No such changes were made for 2006, as the reclassifications would not have a material impact on the figures for that period, and accordingly, would not be material for comparative purposes. |
F-114
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
F-115
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
F-116
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
F-117
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
F-118
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
F-119
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of Colombian pesos and thousands of U.S. dollars. Except for the Representative Market Rate)
F-120
Table of Contents
1.(1) | English Translation of Corporate by-laws (estatutos sociales) of the registrant, as amended on March 01, 2007. | |
2(3) | The Deposit Agreement entered into between Bancolombia and The Bank of New York, as amended on January 14, 2008. | |
4.1. | English Summary of the Stock Purchase Agreement entered into between Bancolombia S.A., the other shareholders named therein and Stratton Span S.L. on June 6, 2008. | |
7 | Selected Ratios’ Calculation. | |
8.1 | List of Subsidiaries. | |
11(2) | English translation of the Ethics Code of the registrant, as amended on June 23, 2008. | |
12.1 | CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated June 30, 2009. | |
12.2 | CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated June 30, 2009. | |
13.1 | CEO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated June 30, 2009. | |
13.2 | CFO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated June 30, 2009. | |
15.(a)(2) | English Translation of Corporate Governance Code (Código the Buen Gobierno) of the registrant, as amended on June 23, 2008. |
(1) | Incorporated by reference to the Bank’s Annual Report on Form 20-F for the year ended December 31, 2006 filed on May 10, 2007. | |
(2) | Incorporated by reference to the Bank’s Annual Report on Form 20-F for the year ended December 31, 2007 filed on July 8, 2008. | |
(3) | Incorporated by reference to the Registration Statement in Form F-6, filed by Bancolombia on January 14, 2008. |