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 |
EXPLANATORY NOTE
This Amendment No. 1 on Form 20-F/A (this “Amendment No. 1”) amends the Bank’s annual report on Form 20-F for the year ended December 31, 2008, filed with the Securities and Exchange Commission (the “SEC”) on June 30, 2009 (the “original filing”). The Bank is filing this Amendment No. 1 to include under Item 18 the report relating to the financial statements of Banagrícola S.A. and its subsidiaries as of December 31, 2007 audited by PriceWaterhouseCoopers, S.A. The report by PriceWaterhouseCoopers, S.A. was included in the annual report on Form 20-F for the year ended December 31, 2007 but was inadvertently omitted from the original filing.
Additionally, the Bank amends Item 19 of the original filing by including as exhibits 15.1, 15.2 and 15.3 consents by independent registered public accounting firms to the incorporation by reference of their reports to the registration statement in Form F-3 No. 333-142898, and by adding updated CEO and CFO certifications as exhibits 12.1, 12.2, 13.1 and 13.2.
The revisions mentioned above appear on the following pages or exhibits:
ITEM 18. FINANCIAL STATEMENTS
Page F-5 (Report of independent registered public accounting firm)
ITEM 19. EXHIBITS
12.1 | CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated July 24, 2009. | |
12.2 | CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated July 24, 2009. | |
13.1 | CEO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated July 24, 2009. | |
13.2 | CFO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated July 24, 2009. | |
15.1 | Consent of PriceWaterhouseCoopers Ltda. | |
15.2 | Consent of Deloitte & Touche Ltda. | |
15.3 | Consent of PriceWaterhouseCoopers, S.A. |
Except for the certifications, this Amendment No. 1 speaks as of the filing date of the original filing. Other than set forth above, this Amendment No. 1 does not, and does not purport to, amend, update or restate any other information or disclosure included in the original filing or reflect any events that have occurred after the filing date of the original filing. This amendment should be read in conjunction with the Bank’s filings made with the SEC subsequent to the original filing, as information in such reports and documents may update or supersede certain information contained in this amendment. This amendment retains the page numbering of the original filing for ease of reference.
1
PART III
FINANCIAL STATEMENTS
ITEM 18. FINANCIAL STATEMENTS
Reference is made to pages F- 1 through F — 120.
ITEM 19. EXHIBITS
The following exhibits are filed as part of this Annual Report.
1(2) | English Translation of Corporate by-laws (estatutos sociales) of the registrant, as amended on March 01, 2007. | |
2(1) | The Deposit Agreement entered into between Bancolombia and The Bank of New York, as amended on January 14, 2008. | |
4.1.(4) | 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.(4) | Selected Ratios’ Calculation | |
8.1(4) | List of Subsidiaries | |
11.(3) | 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 July 24, 2009. | |
12.2 | CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated July 24, 2009. | |
13.1 | CEO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated July 24, 2009. | |
13.2 | CFO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated July 24, 2009. | |
15.(a)(3) | English Translation of Corporate Governance Code (Código de Buen Gobierno) of the registrant, as amended on June 23, 2008. | |
15.1 | Consent of PriceWaterhouseCoopers Ltda. | |
15.2 | Consent of Deloitte & Touche Ltda. | |
15.3 | Consent of PriceWaterhouseCoopers, S.A. |
(1) Incorporated by reference to the Registration Statement in Form F-6, filed by Bancolombia on January 14, 2008.
(2) 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.
(3) 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.
(4) Incorporated by reference to the Bank’s Annual Report on Form 20-F for the year ended December 31, 2008 filed on June 30, 2009.
SIGNATURE
Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this Annual Report on its behalf.
Dated: July 24, 2009
BANCOLOMBIA S.A.
By: /s/ JAIME ALBERTO VELÁSQUEZ BOTERO
Name: Jaime Alberto Velásquez Botero
Title: Chief Financial Officer
2
Page | ||
Reports of Independent Registered Public Accounting Firms | F-2 | |
F-6 | ||
F-8 | ||
F-10 | ||
F-11 | ||
F-13 | ||
F-2
Medellin, Colombia
June 30, 2009
F-3
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
PRICEWATERHOUSECOOPERS
Ave Samuel Lewis y
Calle 55 E
Apartado 0819-05710
El Dorado Panamá R. P.
Teléfono (507) 206-9200
Fax (507) 264-5527
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of Banagrícola, S.A.
We have audited the accompanying consolidated balance sheets of Banagrícola, S.A. and its subsidiaries as of December 31, 2007 and 2006, and the related consolidated statements of income, shareholder’s equity and cash flows for the years then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Banagrícola, S.A. and its subsidiaries at December 31, 2007 and 2006, and the results of their operations and their cash flows for the years then ended in conformity with accounting standards prescribed by the Superintendence of Financial System of El Salvador as described in Note 2.
As described in Note 2, the accompanying consolidated financial statements have been prepared in conformity with accounting standards for controlling entities issued by the Superintendence of Financial Systems of El Salvador, which is a comprehensive basis of accounting other than International Financial Reporting Standards.
/s/ PriceWaterhouseCoopers
June 28, 2008
Panama, Republic of Panama
F-5
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
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
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
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
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
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
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
F-13
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
Notes to Consolidated Financial Statements
F-15
Notes to Consolidated Financial Statements
F-16
Notes to Consolidated Financial Statements
F-17
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
Notes to Consolidated Financial Statements
F-19
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
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
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
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
Notes to Consolidated Financial Statements
F-24
Notes to Consolidated Financial Statements
F-25
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
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
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
Notes to Consolidated Financial Statements
F-29
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
Notes to Consolidated Financial Statements
F-31
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
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
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
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. |
F-35
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
Notes to Consolidated Financial Statements
a) | Contingencies Covered by FOGAFIN: |
b) | Legal Processes |
F-55
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 |
F-56
Notes to Consolidated Financial Statements
F-57
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
Notes to Consolidated Financial Statements
F-59
Notes to Consolidated Financial Statements
F-60
Notes to Consolidated Financial Statements
F-61
Notes to Consolidated Financial Statements
F-62
Notes to Consolidated Financial Statements
F-63
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
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. |
F-65
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. |
F-66
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
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
Notes to Consolidated Financial Statements
F-69
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
12.1 | CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated July 24, 2009. | |
12.2 | CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated July 24, 2009. | |
13.1 | CEO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated July 24, 2009. | |
13.2 | CFO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated July 24, 2009. | |
15.1 | Consent of PriceWaterhouseCoopers Ltda. | |
15.2 | Consent of Deloitte & Touche Ltda. | |
15.3 | Consent of PriceWaterhouseCoopers, S.A. |