UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of November, 2019
Comission File Number 001-32535
Bancolombia S.A.
(Translation of registrant’s name into English)
Cra. 48 # 26-85
Medellín, Colombia
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-Fþ Form 40-F¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):___
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(2):___
Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes¨ Noþ
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .
 |  | 3Q19 |
| | | |
BANCOLOMBIA S.A. (NYSE: CIB; BVC: BCOLOMBIA, PFBCOLOM) REPORTS CONSOLIDATED NET INCOME OF COP 879 BILLION FOR THE THIRD QUARTER OF 2019.
| · | Gross loans grew 11.7% when compared to 3Q18 and 3.4% during the quarter.The quarterly growth shows a moderate trend in the credit demand in Colombia. Peso-denominated loans grew 10.5% when compared to 3Q18. |
| · | Net interest income was COP 2.78 trillion for 3Q19, increasing by 8.3% when compared to 3Q18.This increase is mainly explained by the growth in the loan book. Net interest income decreased by 3.7% during the quarter due to an adjustment in accrued interest associated to stage 3 clients. |
| · | The annualized net interest margin for the quarter was 5.5%.The margin decreased by 40 basis points during the quarter explained by an adjustment in accrued interest associated to stage 3 clients. The margin decreased 30 basis points when compared to 3Q18. |
| · | Provision charges for the quarter were COP 723 billion and the coverage ratio for 90-day past due loans was 191.0%.Provision charges decreased by 28.3% when compared to 3Q18 and by 11.4% compared to 2Q19. New past due loans totaled COP 91 billion for the quarter. |
| · | Efficiency was 49.3% during the last twelve months.Operating expenses increased by 10.5% when compared to 3Q18 and 3.0% when compared to 2Q19. |
| · | Tier 1 ratio was 9.7% on September 30, 2019 and decreased by 52 basis points when compared to September 30, 2018.The capital adequacy ratio was 12.7%. |
November 6, 2019. Medellin, Colombia – Today, BANCOLOMBIA S.A. (“Bancolombia” or “the Bank”) announced its earnings results for the third quarter of 20191. For the quarter ended on September 30, 2019 (“3Q19”), Bancolombia reported consolidated net income of COP 879 billion, or COP 913.45 per share - USD 1.05 per ADR. This net income represents a decrease of 6.2% compared to the quarter ended on June 30, 2019 (“2Q19”) and an increase of 61.7% compared to the quarter ended on September 30, 2018 (“3Q18”).
1. This report corresponds to the interim unaudited consolidated financial information of BANCOLOMBIA S.A. and its subsidiaries (“BANCOLOMBIA” or “The Bank”) which Bancolombia controls, amongst others, by owning directly or indirectly, more than 50% of the voting capital stock. This financial information has been prepared based on financial records generated in accordance with International Financial Reporting Standards – IFRS. BANCOLOMBIA maintains accounting records in Colombian pesos, referred to herein as “Ps.” or “COP”. The financial information for the quarter ended September 30, 2019 is not necessarily indicative of the results for any other future interim period. For more information, please refer to the Bank's filings with the Securities and Exchange Commission, which are available on the Commission's website at www.sec.gov.
. BANCOLOMBIA’s first IFRS financial statements will cover the year ending in 2015. CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS: This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties; consequently, there are or will be factors, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products by other companies, lack of acceptances of new products or services by our targeted customers, changes in business strategy and various others factors, that could cause actual results to differ materially from those indicated in such statements. We do not intend, and do not assume any obligation, to update these forward-looking statements. Certain monetary amounts, percentages and other figures included in this report have been subject to rounding adjustments. Any reference to BANCOLOMBIA means the Bank together with its affiliates, unless otherwise specified.
Representative Market Rate, October 1, 2019 $3,477.45 = US$ 1
| | | 3Q19 |
| | | |
BANCOLOMBIA: Summary of consolidated financial quarterly results
| CONSOLIDATED BALANCE SHEET | | | |
| AND INCOME STATEMENT | Quarter | Growth |
| (COP million) | 3Q18 | 2Q19 | 3Q19 | 3Q19/2Q19 | 3Q19/3Q18 |
| ASSETS | | | | | |
| Net Loans | 154,728,427 | 167,871,470 | 173,408,287 | 3.30% | 12.07% |
| Investments | 15,721,358 | 19,095,332 | 19,947,001 | 4.46% | 26.88% |
| Other assets | 36,205,543 | 43,978,380 | 43,499,938 | -1.09% | 20.15% |
| Total assets | 206,655,328 | 230,945,182 | 236,855,226 | 2.56% | 14.61% |
| | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | |
| Deposits | 130,334,802 | 145,613,200 | 150,044,204 | 3.04% | 15.12% |
| Other liabilities | 51,453,513 | 58,109,807 | 57,868,509 | -0.42% | 12.47% |
| Total liabilities | 181,788,315 | 203,723,007 | 207,912,713 | 2.06% | 14.37% |
| Non-controlling interest | 1,715,901 | 1,827,959 | 1,952,162 | 6.79% | 13.77% |
| Shareholders' equity | 23,151,112 | 25,394,216 | 26,990,351 | 6.29% | 16.58% |
| Total liabilities and shareholders' equity | 206,655,328 | 230,945,182 | 236,855,226 | 2.56% | 14.61% |
| | | | | | |
| Interest income | 3,965,553 | 4,427,495 | 4,353,470 | -1.67% | 9.78% |
| Interest expense | (1,397,178) | (1,538,189) | (1,571,540) | 2.17% | 12.48% |
| Net interest income | 2,568,375 | 2,889,306 | 2,781,930 | -3.72% | 8.31% |
| Net provisions | (1,008,625) | (815,684) | (722,832) | -11.38% | -28.33% |
| Fees and income from service, net | 667,311 | 754,611 | 781,350 | 3.54% | 17.09% |
| Other operating income | 341,064 | 335,754 | 333,216 | -0.76% | -2.30% |
| Total Dividends received and equity method | 78,085 | 103,688 | 67,372 | -35.02% | -13.72% |
| Total operating expense | (1,847,055) | (1,981,013) | (2,040,809) | 3.02% | 10.49% |
| Profit before tax | 799,155 | 1,286,662 | 1,200,227 | -6.72% | 50.19% |
| Income tax | (213,442) | (323,117) | (304,210) | -5.85% | 42.53% |
| Net income before non-controlling interest | 585,713 | 963,545 | 896,017 | -7.01% | 52.98% |
| Non-controlling interest | (42,494) | (27,356) | (17,436) | -36.26% | -58.97% |
| Net income | 543,219 | 936,189 | 878,581 | -6.15% | 61.74% |
| | | | | | |
| PRINCIPAL RATIOS | | Quarter | | As of |
| | 3Q18 | 2Q19 | 3Q19 | 3Q18 | 3Q19 |
| PROFITABILITY | | | | | |
| Net interest margin (1) from continuing operations | 5.71% | 5.90% | 5.54% | 5.73% | 5.69% |
| Return on average total assets (2) from continuing operations | 1.05% | 1.64% | 1.49% | 1.08% | 1.54% |
| Return on average shareholders´ equity (3) | 9.43% | 15.00% | 13.41% | 9.70% | 13.91% |
| EFFICIENCY | | | | | |
| Operating expenses to net operating income | 50.46% | 48.51% | 51.49% | 50.97% | 49.84% |
| Operating expenses to average total assets | 3.57% | 3.47% | 3.47% | 3.63% | 3.49% |
| Operating expenses to productive assets | 4.10% | 4.04% | 4.07% | 4.16% | 4.08% |
| CAPITAL ADEQUACY | | | | | |
| Shareholders' equity to total assets | 11.20% | 11.00% | 11.33% | 11.20% | 11.33% |
| Technical capital to risk weighted assets | 13.66% | 12.94% | 12.71% | 13.66% | 12.71% |
| KEY FINANCIAL HIGHLIGHTS | | | | | |
| Net income per ADS from continuing operations | 0.76 | 1.21 | 1.05 | 2.32 | 3.17 |
| Net income per share $COP from continuing operations | 564.78 | 973.34 | 913.45 | 1,722.45 | 2,753.20 |
| P/BV ADS (4) | 1.29 | 1.55 | 1.53 | 1.29 | 1.53 |
| P/BV Local (5) (6) | 1.33 | 1.46 | 1.41 | 1.33 | 1.41 |
| P/E (7) from continuing operations | 13.93 | 10.20 | 11.26 | 13.71 | 11.21 |
| ADR price | 41.72 | 51.04 | 49.45 | 41.72 | 49.45 |
| Common share price (8) | 31,900 | 38,640 | 39,500 | 31,900 | 39,500 |
| Weighted average of Preferred Shares outstanding | 961,827,000 | 961,827,000 | 961,827,000 | 961,827,000 | 961,827,000 |
| USD exchange rate (quarter end) | 2,972.18 | 3,205.67 | 3,477.45 | 2,972.18 | 3,477.45 |
(1) Defined as net interest income divided by monthly average interest-earning assets. (2) Net income divided by monthly average assets. (3) Net income divided by monthly average shareholders' equity. (4) Defined as ADS price divided by ADS book value. (5) Defined as share price divided by share book value. (6) Share prices on the Colombian Stock Exchange. (7) Defined as market capitalization divided by annualized quarter results. (8) Prices at the end of the respective quarter.
| | | 3Q19 |
| | | |
As of September 30, 2019, Bancolombia’s assets totaled COP 236,855 billion, which represents an increase of 2.6% compared to 2Q19 and of 14.6% compared to 3Q18.
During the quarter, the COP depreciated 8.5% versus the USD and over the past 12 months, it depreciated 17.0%.
The increase in total assets during the quarter is largely explained by the growth in the loan book.
The following table shows the composition of Bancolombia’s loans by type and currency:
| (COP Million) | Amounts in COP | Amounts in USD converted to COP | Amounts in USD (thousands) | Total |
| (1 USD = 3477,45 COP) | 3Q19 | 3Q19/2Q19 | 3Q19 | 3Q19/2Q19 | 3Q19 | 3Q19/2Q19 | 3Q19 | 3Q19/2Q19 |
| Commercial loans | 78,774,193 | -0.06% | 40,955,446 | 4.78% | 11,777,436 | -3.41% | 119,729,639 | 1.54% |
| Consumer loans | 27,364,123 | 6.91% | 11,432,227 | 11.97% | 3,287,532 | 3.22% | 38,796,350 | 8.35% |
| Mortgage loans | 13,053,833 | 1.53% | 11,196,128 | 9.71% | 3,219,637 | 1.14% | 24,249,961 | 5.15% |
| Small business loans | 732,961 | 2.23% | 541,676 | 7.91% | 155,768 | -0.52% | 1,274,638 | 4.57% |
| Interests paid in advance | (20,307) | 313.40% | - | 0.00% | - | 0.00% | (20,307) | 313.40% |
| Gross loans | 119,904,804 | 1.63% | 64,125,477 | 6.87% | 18,440,374 | -1.48% | 184,030,281 | 3.39% |
In 3Q19, gross loans increased by 3.4% when compared to 2Q19. Peso-denominated loans grew 10.5% and the dollar-denominated loans (expressed in USD) decreased by 2.5% when compared to 3Q18.
As of September 30, 2019, the operations in Banco Agricola in El Salvador, Banistmo in Panama and BAM in Guatemala, represented 27% of total gross loans.
Gross loans denominated in currencies other than COP, originated by the operations in Central America, the offshore operation of Bancolombia Panama, Puerto Rico and the USD denominated loans in Colombia, accounted for 34.8% and increased by 6.9% during 3Q19 (when expressed in COP), explained mainly by the depreciation of the COP against the USD during the quarter.
Total reserves (allowances in the balance sheet) for loan losses increased by 5.0% during the quarter and totaled COP 10,622 billion, equivalent to 5.8% of gross loans at the end of the quarter.
For further explanation regarding coverage of the loan portfolio and credit quality trends, (see section 2.4. Asset Quality, Provision Charges and Balance Sheet Strength).
The following table summarizes Bancolombia’s total loan portfolio:
| LOAN PORTFOLIO | | | | | | % of total loans |
| (COP million) | 3Q18 | 2Q19 | 3Q19 | 3Q19/2Q19 | 3Q19/3Q18 |
| Commercial | 112,484,706 | 117,908,795 | 119,729,639 | 1.54% | 6.44% | 65.1% |
| Consumer | 29,552,136 | 35,805,632 | 38,796,350 | 8.35% | 31.28% | 21.1% |
| Mortgage | 21,605,510 | 23,062,696 | 24,249,961 | 5.15% | 12.24% | 13.2% |
| Microcredit | 1,078,080 | 1,218,954 | 1,274,638 | 4.57% | 18.23% | 0.7% |
| Interests received in advance | (4,380) | (4,912) | (20,307) | 313.40% | 363.60% | 0.0% |
| Total loan portfolio | 164,716,053 | 177,991,165 | 184,030,281 | 3.39% | 11.73% | 100.0% |
| Allowance for loan losses | (9,987,626) | (10,119,695) | (10,621,994) | 4.96% | 6.35% | |
| Total loans, net | 154,728,427 | 167,871,470 | 173,408,287 | 3.30% | 12.07% | |
| | | 3Q19 |
| | | |
As of September 30, 2019, Bancolombia’s net investment portfolio totaled COP 19,947 billion, increasing by 4.5% from the end of 2Q19 and by 26.9% from the end of 3Q18.
At the end of 3Q19, the debt securities portfolio had a duration of 20.4 months and a weighted average yield to maturity of 4.5%.
| 1.4. | Goodwill and intangibles |
As of 3Q19, Bancolombia’s goodwill and intangibles totaled COP 7,648 billion, increasing by 8.0% compared to 2Q19. This variation is explained by the depreciation of the COP against the USD during the quarter.
As of September 30, 2019, Bancolombia’s liabilities totaled COP 207,913 billion, increasing by 2.1% from the end of 2Q19 and by 14.4% compared to 3Q18.
Deposits by customers totaled COP 150,044 billion (or 72.2% of liabilities) at the end of 3Q19, increasing by 3.0% when compared to 2Q19 and by 15.1% over the last 12 months. The net loans to deposits ratio was 115.6% at the end of 3Q19 increasing when compared to 115.3% at the end of 2Q19.
Bancolombia’s funding strategy during the last months has been to reduce the average life and cost of time deposits and promote saving and checking accounts in the consumer segment in order to keep the funding cost at a minimum. The objective is to build and maintain ample liquidity and stable margins.
| Funding mix | 3Q18 | 2Q19 | 3Q19 |
| COP Million | | | | | |
| Checking accounts | 20,436,265 | 12% | 21,647,728 | 11% | 22,656,648 | 12% |
| Saving accounts | 53,926,535 | 32% | 60,605,107 | 32% | 61,053,267 | 31% |
| Time deposits | 54,742,421 | 32% | 62,392,389 | 33% | 65,403,609 | 34% |
| Other deposits | 5,577,801 | 3% | 8,118,310 | 4% | 6,008,975 | 3% |
| Long term debt | 19,176,927 | 11% | 18,953,882 | 10% | 21,129,087 | 11% |
| Loans with banks | 16,922,913 | 10% | 17,359,913 | 9% | 17,574,077 | 9% |
| Total Funds | 170,782,862 | 100% | 189,077,329 | 100% | 193,825,663 | 100% |
| 1.6. | Shareholders’ Equity and Regulatory Capital |
Shareholders’ equity at the end of 3Q19 was COP 26,990 billion, increasing by 6.3% compared to 2Q19 and by 16.6% when compared to 3Q18.
Bancolombia’s capital adequacy ratio was 12.71% in 3Q19, 371 basis points above the minimum 9% required by the Colombian regulator, while the basic capital ratio (Tier 1) to risk weighted assets was 9.72%, 522 basis points above the regulatory minimum of 4.5%.
The tangible capital ratio, defined as shareholders’ equity minus goodwill and intangible assets divided by tangible assets, was 8.2% at the end of 3Q19.
During 2019, Bancolombia has generated capital organically due to the appropriation of earnings in March 2019. The annual increase in the RWA is mainly explained by the growth in the loan book and the depreciation of the COP against the USD.
| | | 3Q19 |
| | | |
| TECHNICAL CAPITAL RISK WEIGHTED ASSETS | | | | | | |
| Consolidated (COP millions) | 3Q18 | % | 2Q19 | % | 3Q19 | % |
| Basic capital (Tier I) | 19,331,181 | 10.24% | 19,994,668 | 9.90% | 20,517,980 | 9.72% |
| Additional capital (Tier II) | 6,449,636 | 3.42% | 6,152,808 | 3.05% | 6,321,398 | 2.99% |
| Technical capital(1) | 25,780,818 | | 26,147,476 | | 26,839,378 | |
| Risk weighted assets including market risk | 188,734,013 | | 202,045,333 | | 211,126,069 | |
| CAPITAL ADEQUACY(2) | | 13.66% | | 12.94% | | 12.71% |
(1) Technical capital is the sum of basic and additional capital.
(2) Capital adequacy is technical capital divided by risk-weighted assets.
| | | 3Q19 |
| | | |
Net income totaled COP 879 billion in 3Q19, or COP 913.45 per share - USD 1.05 per ADR. This net income represents a decrease of 6.2% compared to 2Q19 and an increase of 61.7% compared to 3Q18. Bancolombia’s annualized ROE for 3Q19 was 13.4%.
Net interest income totaled COP 2,782 billion in 3Q19, 3.7% less than the one reported in 2Q19, and 8.3% more than the figure for 3Q18. The decreased during the quarter is explained by an adjustment in accrued interest associated to stage 3 clients. This adjustment is offset by lower provision expenses, therefore it does not have an impact on the bank's net income.
During 3Q19, the investment, interest rate derivatives and repos portfolio generated COP 236 billion, up by 30.0% from 2Q19.
Net Interest Margin
The annualized net interest margin decreased to 5.5% in 3Q19. The annualized net interest margin for investments was 3.1%, and the annualized net interest margin of the loan portfolio was 5.8%, increasing compared to the one reported in 2Q19. The reduction in the margin is explained by an adjustment in accrued interest associated to stage 3 clients.
| Annualized Interest | | | |
| Margin | 3Q18 | 2Q19 | 3Q19 |
| Loans' Interest margin | 6.1% | 6.0% | 5.8% |
| Debt investments' margin | 1.9% | 4.7% | 3.1% |
| Net interest margin | 5.8% | 5.9% | 5.5% |
Total funding cost decreased slightly during 3Q19. Savings and checking accounts represented the same proportion of the total funding as in 2Q19, and the annualized average weighted cost of deposits was 2.85% in 3Q19, same figure when compared to 2Q19 and decreasing 1 basis point compared to 3Q18.
| Average weighted | | | |
| funding cost | 3Q18 | 2Q19 | 3Q19 |
| Checking accounts | 0.00% | 0.00% | 0.00% |
| Saving accounts | 1.82% | 1.79% | 1.70% |
| Time deposits | 4.97% | 4.89% | 4.94% |
| Total deposits | 2.86% | 2.85% | 2.85% |
| Long term debt | 6.01% | 5.75% | 5.93% |
| Loans with banks | 2.31% | 2.62% | 2.41% |
| Total funding cost | 3.13% | 3.11% | 3.10% |
| 2.2. | Fees and Income from Services |
During 3Q19, net fees and income from services totaled COP 781 billion, increasing by 3.5% compared to 2Q19, and by 17.1% compared to 3Q18. The positive annual performance in fees is due to higher volumes of transactions and the good performance of credit and debit cards, trust services and bancassurance.
Fees from credit and debit cards increased by 6.7% compared to 2Q19 and by 22.6% compared to 3Q18. Fees from asset management and trust services increased by 5.8% compared to 2Q19 and by 12.0% compared to 3Q18, due to an increase in the assets under management. Fees from our bancassurance business increased by 6.6% compared to 2Q19 and by 22.9% with respect to 3Q18.
| | | 3Q19 |
| | | |
The following table summarizes Bancolombia’s market share in the credit card business in Colombia:
| ACCUMULATED CREDIT CARD BILLING | % | 2019 |
| (COP millions) | Aug-18 | Aug-19 | Growth | Market Share |
| Bancolombia VISA | 5,442,065 | 6,234,865 | 14.57% | 11.44% |
| Bancolombia Mastercard | 4,255,720 | 5,482,974 | 28.84% | 10.06% |
| Bancolombia American Express | 2,369,946 | 2,469,744 | 4.21% | 4.53% |
| Total Bancolombia | 12,067,731 | 14,187,583 | 17.57% | 26.02% |
| Colombian Credit Card Market | 47,833,227 | 54,519,793 | 13.98% | |
| CREDIT CARD MARKET SHARE | % | 2019 |
| (Outstanding credit cards) | Aug-18 | Aug-19 | Growth | Market Share |
| Bancolombia VISA | 882,728 | 960,163 | 8.77% | 5.49% |
| Bancolombia Mastercard | 985,074 | 1,041,774 | 5.76% | 5.96% |
| Bancolombia American Express | 583,351 | 596,382 | 2.23% | 3.41% |
| Total Bancolombia | 2,451,153 | 2,598,319 | 6.00% | 14.87% |
| Colombian Credit Card Market | 16,929,707 | 17,479,100 | 3.25% | |
Source: Superintendencia Financiera de Colombia
| 2.3. | Other Operating Income |
Total other operating income was COP 333 billion in 3Q19, decreasing by 0.8% compared to 2Q19 and by 2.3% compared to 3Q18.
Revenues from operating leases totaled COP 161 billion in 3Q19, increasing by 1.4% compared to 2Q19 and by 1.7% compared to those reported in 3Q18. The annual increase is due to higher volumes of operations and delivered assets under leasing.
| 2.4. | Asset Quality, Provision Charges and Balance Sheet Strength |
The principal balance for past due loans (those that are overdue for more than 30 days) totaled COP 7,563 billion at the end of 3Q19 and represented 4.2% of total gross loans, decreasing by 6.9% compared to 2Q19, when past due loans represented 4.7% of total gross loans. During 3Q19, Charge-offs totaled COP 650 billion.
The coverage, measured by the ratio of allowances for loans losses (principal) to PDLs (overdue 30 days), was 129.6% at the end of 3Q19, increasing compared to 113.9% at the end of 2Q19.
The deterioration of the loan portfolio (new past due loans including charge-offs) was COP 91 billion in 3Q19. Provision charges (net of recoveries) totaled COP 723 billion in 3Q19. During the quarter, Consorcio Express was restructured by COP 705 billion, which caused the net impairment to be lower than in previous quarters.
Provisions as a percentage of the average gross loans were 1.6% for 3Q19 and 1.9% for the last 12 months. Cost of risk excluding the corporate cases (Ruta del Sol and Consorcio Express) was 1.3% for 3Q19 and 1.6% for the last 12 months. Regarding Ruta del Sol, there were additional provisions by COP 155 billion in 3Q19.
| | | 3Q19 |
| | | |
Bancolombia maintains a strong balance sheet supported by an adequate level of loan loss reserves. Allowances (for the principal) for loan losses totaled COP 9,806 billion, or 5.5% of total loans at the end of 3Q19, decreasing when compared to 2Q19.
The following tables present key metrics related to asset quality:
| ASSET QUALITY | As of |
| (COP millions) | 3Q18 | 2Q19 | 3Q19 |
| Total 30-day past due loans | 8,118,514 | 8,122,246 | 7,563,180 |
| Allowance for loan losses (1) | 9,111,049 | 9,249,001 | 9,805,577 |
| Past due loans to total loans | 5.09% | 4.71% | 4.24% |
| Allowances to past due loans | 112.23% | 113.87% | 129.65% |
| Allowance for loan losses as a percentage of total loans | 5.71% | 5.36% | 5.49% |
(1) Allowances are reserves for the principal of loans.
| PDL Per Category | | | 30 days |
| | % Of loan Portfolio | 3Q18 | 2Q19 | 3Q19 |
| Commercial loans | 65.1% | 4.29% | 4.02% | 3.38% |
| Consumer loans | 21.1% | 5.61% | 4.85% | 4.74% |
| Mortgage loans | 13.2% | 8.06% | 7.53% | 7.18% |
| Microcredit | 0.7% | 11.75% | 11.85% | 11.45% |
| PDL TOTAL | | 5.09% | 4.71% | 4.24% |
| | | | | |
| PDL Per Category | | | 90 days |
| | % Of loan Portfolio | 3Q18 | 2Q19 | 3Q19 |
| Commercial loans | 65.1% | 3.64% | 3.32% | 2.80% |
| Consumer loans | 21.1% | 2.97% | 2.55% | 2.57% |
| Mortgage loans* | 13.2% | 3.63% | 3.59% | 3.43% |
| Microcredit | 0.7% | 8.08% | 7.73% | 7.88% |
| PDL TOTAL | | 3.55% | 3.23% | 2.88% |
* Mortgage loans that were overdue were calculated for past due loans for 120 days instead of 90 days.
During 3Q19, operating expenses totaled COP 2,041 billion, increasing by 3.0% with respect to 2Q19 and by 10.5% with respect to 3Q18.
Personnel expenses (salaries, bonus plan payments and compensation) totaled COP 855 billion in 3Q19, increasing by 8.0% compared to 2Q19 and by 13.5% compared to 3Q18.
During 3Q19, administrative expenses totaled COP 722 billion, decreasing by 8.0% compared to 2Q19 and by 2.0% as compared to 3Q18.
Depreciation and amortization expenses totaled COP 222 billion in 3Q19, increasing by 23.8% compared to 2Q19 and by 68.6% compared to 3Q18, explain by the implementation of IFRS 16, as well as, higher expenses related to foreclosures.
As of September 30, 2019, Bancolombia had 30,900 employees, owned 989 branches, 6,083 ATMs, 15,299 banking agents and served more than 14 million customers.
Income tax expense was COP 304 billion for 3Q19, decreasing by 5.9% when compared to the income tax registered in 2Q19, and increasing by 42.5% compared to 3Q18.
| | | 3Q19 |
| | | |
| 3. | BREAK DOWN OF OPERATIONS |
The following table summarizes the financial statements of our operations in each country.
BANCOLOMBIA S.A. (STAND ALONE) - COLOMBIA
| CONSOLIDATED BALANCE SHEET | | | | |
| AND INCOME STATEMENT | Quarter | Growth |
| (COP million) | 3Q18 | 2Q19 | 3Q19 | 3Q19/2Q19 | 3Q19/3Q18 |
| ASSETS | | | | | |
| Gross loans | 115,612,740 | 126,484,707 | 127,784,162 | 1.03% | 10.53% |
| Allowances for loans | (8,276,291) | (8,211,548) | (8,445,981) | 2.85% | 2.05% |
| Investments | 17,353,442 | 20,480,268 | 20,379,708 | -0.49% | 17.44% |
| Other assets | 17,203,478 | 21,816,959 | 21,097,278 | -3.30% | 22.63% |
| Total assets | 141,893,370 | 160,570,385 | 160,815,167 | 0.15% | 13.34% |
| | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | |
| Deposits | 84,645,861 | 95,585,754 | 95,515,990 | -0.07% | 12.84% |
| Other liabilities | 40,921,449 | 48,293,495 | 48,460,652 | 0.35% | 18.42% |
| Total liabilities | 125,567,310 | 143,879,249 | 143,976,642 | 0.07% | 14.66% |
| Shareholders' equity | 16,326,059 | 16,691,136 | 16,838,525 | 0.88% | 3.14% |
| Total liabilities and shareholders' equity | 141,893,370 | 160,570,385 | 160,815,167 | 0.15% | 13.34% |
| | | | | | |
| Interest income | 3,011,024 | 3,399,936 | 3,344,106 | -1.64% | 11.06% |
| Interest expense | (1,085,060) | (1,219,043) | (1,251,848) | 2.69% | 15.37% |
| Net interest income | 1,925,963 | 2,180,893 | 2,092,258 | -4.06% | 8.63% |
| Net provisions | (895,289) | (680,600) | (533,955) | -21.55% | -40.36% |
| Fees and income from service, net | 402,785 | 496,792 | 509,829 | 2.62% | 26.58% |
| Other operating income | 151,372 | 118,055 | 121,803 | 3.17% | -19.53% |
| Total operating expense | (1,248,111) | (1,371,780) | (1,382,773) | 0.80% | 10.79% |
| Profit before tax | 336,721 | 743,360 | 807,162 | 8.58% | 139.71% |
| Income tax | (154,113) | (213,006) | (232,846) | 9.31% | 51.09% |
| Net income | 182,608 | 530,354 | 574,317 | 8.29% | 214.51% |
BANISTMO- PANAMA
| CONSOLIDATED BALANCE SHEET | | | | |
| AND INCOME STATEMENT | Quarter | Growth |
| (COP million) | 3Q18 | 2Q19 | 3Q19 | 3Q19/2Q19 | 3Q19/3Q18 |
| ASSETS | | | | | |
| Gross loans | 22,519,736 | 24,788,707 | 26,762,497 | 7.96% | 18.84% |
| Allowances for loans | (708,515) | (796,364) | (921,459) | 15.71% | 30.06% |
| Investments | 3,067,872 | 3,537,769 | 4,013,750 | 13.45% | 30.83% |
| Other assets | 3,272,935 | 4,047,533 | 4,388,165 | 8.42% | 34.07% |
| Total assets | 28,152,028 | 31,577,645 | 34,242,953 | 8.44% | 21.64% |
| | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | |
| Deposits | 18,694,296 | 20,620,376 | 22,547,100 | 9.34% | 20.61% |
| Other liabilities | 6,444,067 | 7,489,303 | 7,871,105 | 5.10% | 22.14% |
| Total liabilities | 25,138,364 | 28,109,679 | 30,418,205 | 8.21% | 21.00% |
| Shareholders' equity | 3,013,664 | 3,467,966 | 3,824,748 | 10.29% | 26.91% |
| Total liabilities and shareholders' equity | 28,152,028 | 31,577,645 | 34,242,953 | 8.44% | 21.64% |
| | | | | | |
| Interest income | 405,220 | 481,397 | 473,744 | -1.59% | 16.91% |
| Interest expense | (149,987) | (183,238) | (193,517) | 5.61% | 29.02% |
| Net interest income | 255,233 | 298,160 | 280,227 | -6.01% | 9.79% |
| Net provisions | (60,257) | (45,967) | (100,655) | 118.97% | 67.04% |
| Fees and income from service, net | 46,634 | 48,777 | 55,934 | 14.67% | 19.94% |
| Other operating income | 10,886 | (3,143) | 15,260 | -585.55% | 40.18% |
| Total operating expense | (154,720) | (168,516) | (179,766) | 6.68% | 16.19% |
| Profit before tax | 97,776 | 129,310 | 71,000 | -45.09% | -27.38% |
| Income tax | (17,133) | (18,821) | (10,537) | -44.02% | -38.50% |
| Net income | 80,642 | 110,488 | 60,463 | -45.28% | -25.02% |
| | | 3Q19 |
| | | |
BANCO AGRÍCOLA- EL SALVADOR
| CONSOLIDATED BALANCE SHEET | | | | |
| AND INCOME STATEMENT | Quarter | Growth |
| (COP million) | 3Q18 | 2Q19 | 3Q19 | 3Q19/2Q19 | 3Q19/3Q18 |
| ASSETS | | | | | |
| Gross loans | 9,629,506 | 10,808,172 | 11,977,433 | 10.82% | 24.38% |
| Allowances for loans | (388,956) | (445,106) | (500,786) | 12.51% | 28.75% |
| Investments | 673,037 | 795,426 | 878,444 | 10.44% | 30.52% |
| Other assets | 3,143,424 | 3,787,272 | 4,140,328 | 9.32% | 31.71% |
| Total assets | 13,057,010 | 14,945,763 | 16,495,420 | 10.37% | 26.33% |
| | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | |
| Deposits | 9,331,147 | 10,670,736 | 11,734,209 | 9.97% | 25.75% |
| Other liabilities | 2,094,468 | 2,584,955 | 2,865,595 | 10.86% | 36.82% |
| Total liabilities | 11,425,615 | 13,255,691 | 14,599,804 | 10.14% | 27.78% |
| Shareholders' equity | 1,631,395 | 1,690,072 | 1,895,616 | 12.16% | 16.20% |
| Total liabilities and shareholders' equity | 13,057,010 | 14,945,763 | 16,495,420 | 10.37% | 26.33% |
| | | | | | |
| Interest income | 227,039 | 267,444 | 276,568 | 3.41% | 21.82% |
| Interest expense | (62,622) | (71,268) | (77,027) | 8.08% | 23.00% |
| Net interest income | 164,417 | 196,176 | 199,540 | 1.71% | 21.36% |
| Net provisions | (26,953) | (14,172) | (41,005) | 189.34% | 52.13% |
| Fees and income from service, net | 45,789 | 50,497 | 53,304 | 5.56% | 16.41% |
| Other operating income | 721 | (170) | 3,093 | -1915.95% | 328.75% |
| Total operating expense | (104,288) | (108,851) | (127,844) | 17.45% | 22.59% |
| Profit before tax | 79,686 | 123,479 | 87,088 | -29.47% | 9.29% |
| Income tax | (35,665) | (34,352) | (26,886) | -21.73% | -24.62% |
| Net income | 44,021 | 89,128 | 60,203 | -32.45% | 36.76% |
GRUPO AGROMERCANTIL HOLDING – GUATEMALA
| CONSOLIDATED BALANCE SHEET | | | | |
| AND INCOME STATEMENT | Quarter | Growth |
| (COP million) | 3Q18 | 2Q19 | 3Q19 | 3Q19/2Q19 | 3Q19/3Q18 |
| ASSETS | | | | | |
| Gross loans | 9,182,744 | 10,474,996 | 11,641,601 | 11.14% | 26.78% |
| Allowances for loans | (433,581) | (525,280) | (605,911) | 15.35% | 39.75% |
| Investments | 1,452,086 | 1,272,319 | 1,497,191 | 17.67% | 3.11% |
| Other assets | 2,102,252 | 2,336,695 | 2,211,021 | -5.38% | 5.17% |
| Total assets | 12,303,501 | 13,558,730 | 14,743,901 | 8.74% | 19.84% |
| | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | |
| Deposits | 8,552,252 | 9,502,479 | 10,437,476 | 9.84% | 22.04% |
| Other liabilities | 2,568,322 | 2,795,149 | 2,933,909 | 4.96% | 14.23% |
| Total liabilities | 11,120,574 | 12,297,628 | 13,371,385 | 8.73% | 20.24% |
| Non-controlling interest | 19,987 | 19,718 | 20,036 | 1.61% | 0.25% |
| Shareholders' equity | 1,162,940 | 1,241,384 | 1,352,480 | 8.95% | 16.30% |
| Total liabilities and shareholders' equity | 12,303,501 | 13,558,730 | 14,743,901 | 8.74% | 19.84% |
| | | | | | |
| Interest income | 246,278 | 233,305 | 249,461 | 6.92% | 1.29% |
| Interest expense | (96,249) | (103,866) | (109,194) | 5.13% | 13.45% |
| Net interest income | 150,030 | 129,440 | 140,266 | 8.36% | -6.51% |
| Net provisions | (47,990) | (87,891) | (53,567) | -39.05% | 11.62% |
| Fees and income from service, net | 26,700 | 34,226 | 32,827 | -4.09% | 22.95% |
| Other operating income | 10,576 | 13,098 | 14,121 | 7.81% | 33.52% |
| Total operating expense | (122,841) | (114,745) | (122,393) | 6.67% | -0.36% |
| Profit before tax | 16,475 | (25,872) | 11,254 | -143.50% | -31.69% |
| Income tax | 287 | 11,789 | (1,624) | -113.78% | -666.64% |
| Net income before non-controlling interest | 16,762 | (14,083) | 9,630 | -168.38% | -42.55% |
| Non-controlling interest | (746) | (305) | (566) | 85.34% | -24.08% |
| Net income | 16,016 | (14,389) | 9,064 | -162.99% | -43.41% |
| | | 3Q19 |
| | | |
| · | July 12, 2019. Bancolombia S.A. announced that its subsidiaries Fiduciaria Bancolombia and Banca de Inversion Bancolombia, have closed the sale to TMF Group Americas B.V of 100% of the shares of FiduPeru S.A, a trust services company incorporated and with operations in Peru, transaction that was disclosed last November 26, 2018. |
| · | July 19, 2019. Bancolombia S.A. announced that completed the issuance and placement of an offering of sustainable bonds (Bonos sostenibles) in an aggregate principal amount of six hundred fifty seven thousand million pesos (COP $657,000,000,000) in the Segundo Mercado exchange, with a term of 5 years and an interest rate of IBR + 1,60%. The proceeds from the offering will be used to finance sustainability projects including renewable energy, energetic efficiency, cleaner production, social infrastructure, and access to housing, among others, in accordance with international standards contemplated by the Sustainability Bond Guidelines. |
The IIC (Interamerican Investment Corporation) and the IDB (Interamerican Development Bank), acquired all the bonds in the offering.
| · | November 5, 2019. The Colombian Constitutional Court ruled that the 4% income tax surcharge applicable to Financial Institutions during 2019 was not constitutional and as a result, should be eliminated. This ruling has immediate effect. |
| | | 3Q19 |
| | | |
| 5. | BANCOLOMBIA Company Description (NYSE: CIB) |
GRUPO BANCOLOMBIA is a full service financial conglomerate incorporated in Colombia that offers a wide range of banking products and services to a diversified individual and corporate customer base of more than 14 million customers. GRUPO BANCOLOMBIA delivers its products and services via its regional network comprised of: Colombia’s largest non-government owned banking network, El Salvador’s leading financial conglomerate (Banagricola S.A.), off-shore and local (Banistmo S.A.) banking subsidiaries in Panama, Guatemala, Cayman and Puerto Rico. Together, BANCOLOMBIA and its subsidiaries provide stock brokerage, investment banking, leasing, factoring, consumer finance, fiduciary and trust services, asset management, among others.
| | | 3Q19 |
| | | |
| BALANCE SHEET | | | | Growth | | |
| (COP million) | Sep-18 | Jun-19 | Sep-19 | sep-19 /
jun-19 | sep-19 /
sep-18 | % of
Assets | % of Liabilities |
| ASSETS | | | | | | | |
| Cash and balances at central bank | 13,860,509 | 17,230,789 | 16,538,443 | -4.02% | 19.32% | 6.98% | |
| Interbank borrowings | 1,797,802 | 2,494,428 | 1,747,137 | -29.96% | -2.82% | 0.74% | |
| Reverse repurchase agreements and other similar secured lend | 1,693,536 | 618,371 | 401,167 | -35.13% | -76.31% | 0.17% | |
| Financial assets investments | 15,721,358 | 19,095,332 | 19,947,001 | 4.46% | 26.88% | 8.42% | |
| Derivative financial instruments | 1,168,618 | 1,677,614 | 2,292,926 | 36.68% | 96.21% | 0.97% | |
| Loans and advances to customers | 164,716,053 | 177,991,165 | 184,030,281 | 3.39% | 11.73% | 77.70% | |
| Allowance for loan and lease losses | (9,987,626) | (10,119,695) | (10,621,994) | 4.96% | 6.35% | -4.48% | |
| Investment in associates and joint ventures | 1,802,640 | 2,244,945 | 2,283,729 | 1.73% | 26.69% | 0.96% | |
| Goodwill and Intangible assets, net | 6,597,390 | 7,080,419 | 7,647,515 | 8.01% | 15.92% | 3.23% | |
| Premises and equipment, net | 3,171,141 | 3,200,163 | 3,367,311 | 5.22% | 6.19% | 1.42% | |
| Investment property | 1,702,201 | 1,768,443 | 1,922,097 | 8.69% | 12.92% | 0.81% | |
| Right of use assets | - | 1,717,742 | 1,752,734 | 2.04% | 100.00% | 0.74% | |
| Prepayments | 316,419 | 349,956 | 549,433 | 57.00% | 73.64% | 0.23% | |
| Tax receivables | 867,368 | 1,056,098 | 1,260,434 | 19.35% | 45.32% | 0.53% | |
| Deferred tax | 732,206 | 1,400,678 | 359,727 | -74.32% | -50.87% | 0.15% | |
| Assets held for sale and inventories | 566,908 | 643,218 | 522,145 | -18.82% | -7.90% | 0.22% | |
| Other assets | 1,928,805 | 2,495,516 | 2,855,140 | 14.41% | 48.03% | 1.21% | |
| Total assets | 206,655,328 | 230,945,182 | 236,855,226 | 2.56% | 14.61% | 100.00% | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | |
| LIABILITIES | | | | | | | |
| Deposit by customers | 130,334,802 | 145,613,200 | 150,044,204 | 3.04% | 15.12% | 63.35% | 72.17% |
| Interbank Deposits | 1,889,628 | 1,827,599 | 1,920,483 | 5.08% | 1.63% | 0.81% | 0.92% |
| Derivative financial instrument | 969,802 | 1,471,516 | 1,752,774 | 19.11% | 80.74% | 0.74% | 0.84% |
| Borrowings from other financial institutions | 15,033,285 | 15,532,314 | 15,653,594 | 0.78% | 4.13% | 6.61% | 7.53% |
| Debt securities in issue | 19,176,927 | 18,953,882 | 21,129,087 | 11.48% | 10.18% | 8.92% | 10.16% |
| Lease liability | - | 1,994,165 | 1,901,466 | -4.65% | 100.00% | 0.80% | 0.91% |
| Preferred shares | 569,017 | 555,152 | 569,477 | 2.58% | 0.08% | 0.24% | 0.27% |
| Repurchase agreements and other similar secured borrowing | 4,348,220 | 7,150,334 | 5,078,295 | -28.98% | 16.79% | 2.14% | 2.44% |
| Liabilities relating to assets held for sale | 154,790 | 2,234 | - | -100.00% | -100.00% | 0.00% | 0.00% |
| Current tax | 571,045 | 676,547 | 760,470 | 12.40% | 33.17% | 0.32% | 0.37% |
| Deferred tax | 1,873,392 | 2,289,104 | 1,247,699 | -45.49% | -33.40% | 0.53% | 0.60% |
| Employees benefit plans | 130,911 | 126,847 | 743,891 | 486.45% | 468.24% | 0.31% | 0.36% |
| Other liabilities | 6,736,496 | 7,530,113 | 7,111,273 | -5.56% | 5.56% | 3.00% | 3.42% |
| Total liabilities | 181,788,315 | 203,723,007 | 207,912,713 | 2.06% | 14.37% | 87.78% | 100.00% |
| SHAREHOLDERS' EQUITY | | | | | | | |
| Share Capital | 480,914 | 480,914 | 480,914 | 0.00% | 0.00% | 0.20% | |
| Additional paid-in-capital | 4,857,454 | 4,857,454 | 4,857,454 | 0.00% | 0.00% | 2.05% | |
| Appropriated reserves | 9,940,172 | 10,654,090 | 10,412,822 | -2.26% | 4.75% | 4.40% | |
| Retained earnings | 5,288,377 | 6,231,525 | 7,354,354 | 18.02% | 39.07% | 3.10% | |
| Accumulated other comprehensive income (loss), net of tax | 2,584,195 | 3,170,233 | 3,884,807 | 22.54% | 50.33% | 1.64% | |
| Stockholders’ equity attributable to the owners of the parent company | 23,151,112 | 25,394,216 | 26,990,351 | 6.29% | 16.58% | 11.40% | |
| Non-controlling interest | 1,715,901 | 1,827,959 | 1,952,162 | 6.79% | 13.77% | 0.82% | |
| Total liabilities and equity | 206,655,328 | 230,945,182 | 236,855,226 | 2.56% | 14.61% | 100.00% | |
| | | 3Q19 |
| | | |
| INCOME STATEMENT | As of | Growth | | | | Growth |
| (COP million) | Sep-18 | Sep-19 | sep-19 / sep-18 | 3Q 18 | 2Q 19 | 3Q 19 | 3Q 19 / 2Q 19 | 3Q 19 / 3Q 18 |
| Interest income and expenses | | | | | | | | |
| Interest on loans and financial leases | | | | | | | | |
| Commercial | 5,385,931 | 5,500,476 | 2.13% | 1,812,679 | 1,885,001 | 1,793,689 | -4.84% | -1.05% |
| Consumer | 3,067,506 | 3,833,440 | 24.97% | 1,049,558 | 1,299,786 | 1,334,151 | 2.64% | 27.12% |
| Small business loans | 165,859 | 107,844 | -34.98% | 58,144 | 37,140 | 34,478 | -7.17% | -40.70% |
| Mortgage | 1,415,765 | 1,487,826 | 5.09% | 441,353 | 519,042 | 468,146 | -9.81% | 6.07% |
| Leasing | 1,424,001 | 1,430,855 | 0.48% | 462,748 | 487,442 | 470,750 | -3.42% | 1.73% |
| Interest income on loans and financial leases | 11,459,062 | 12,360,441 | 7.87% | 3,824,482 | 4,228,411 | 4,101,214 | -3.01% | 7.24% |
| Interest income on overnight and market funds | 25,323 | 53,089 | 109.65% | 8,490 | 17,228 | 15,830 | -8.11% | 86.45% |
| Interest and valuation on Investments at amortized cost | | | | | | | | |
| Debt investments, net | 91,669 | 116,777 | 27.39% | 2,244 | 40,038 | 41,001 | 2.41% | 1727.14% |
| Net gains from investment activities at fair value through income statement | | | | | | | | |
| Debt investments | 319,654 | 806,942 | 152.44% | 143,275 | 303,570 | 298,168 | -1.78% | 108.11% |
| Derivatives | 11,396 | (209,339) | -1936.95% | (3,404) | (110,125) | (34,115) | -69.02% | 902.20% |
| Repos | (40,583) | (155,786) | 283.87% | (12,780) | (50,234) | (66,598) | 32.58% | 421.11% |
| Other | (8,486) | (6,031) | -28.93% | 3,246 | (1,393) | (2,030) | 45.73% | -162.54% |
| Total Net gains from investment activities at fair value through profit and loss | 281,981 | 435,786 | 54.54% | 130,337 | 141,818 | 195,425 | 37.80% | 49.94% |
| Total Interest and valuation on investments | 373,650 | 552,563 | 47.88% | 132,581 | 181,856 | 236,426 | 30.01% | 78.33% |
| Total interest and valuation | 11,858,035 | 12,966,093 | 9.34% | 3,965,553 | 4,427,495 | 4,353,470 | -1.67% | 9.78% |
| Interest expense | | | | | | | | |
| Borrowing costs | (420,795) | (484,415) | 15.12% | (149,133) | (160,696) | (159,035) | -1.03% | 6.64% |
| Overnight funds | (12,117) | (16,855) | 39.10% | (6,949) | (5,907) | (6,464) | 9.43% | -6.98% |
| Debt securities in issue | (844,390) | (864,093) | 2.33% | (285,000) | (279,562) | (297,248) | 6.33% | 4.30% |
| Deposits | (2,896,754) | (3,086,891) | 6.56% | (937,961) | (1,038,055) | (1,061,769) | 2.28% | 13.20% |
| Preferred Shares Dividends | (43,734) | (43,181) | -1.26% | (14,578) | (13,812) | (14,325) | 3.71% | -1.74% |
| Interest right of use assets | - | (96,280) | 100.00% | - | (35,167) | (27,602) | -21.51% | 100.00% |
| Other interest (expense) | (13,221) | (15,818) | 19.64% | (3,557) | (4,990) | (5,097) | 2.14% | 43.29% |
| Total interest expenses | (4,231,011) | (4,607,533) | 8.90% | (1,397,178) | (1,538,189) | (1,571,540) | 2.17% | 12.48% |
| Net interest margin and valuation income on financial instruments before impairment on loans and financial leases and off balance sheet credit instruments | 7,627,024 | 8,358,560 | 9.59% | 2,568,375 | 2,889,306 | 2,781,930 | -3.72% | 8.31% |
| Credit impairment charges on loans and advance and financial leases | (3,221,594) | (2,697,045) | -16.28% | (1,160,246) | (968,806) | (866,843) | -10.52% | -25.29% |
| Recovery of charged-off loans | 329,258 | 422,747 | 28.39% | 123,786 | 146,804 | 160,192 | 9.12% | 29.41% |
| Credit impairment charges on/recoveries on off balance sheet credit instruments | 25,890 | (11,869) | -145.84% | 17,166 | 3,563 | (19,096) | -636.02% | -211.24% |
| Credit impairment charges/recoveries on investments | 10,669 | 4,725 | -55.71% | 10,669 | 2,755 | 2,915 | 5.81% | -72.68% |
| Total credit impairment charges, net | (2,855,777) | (2,281,442) | -20.11% | (1,008,625) | (815,684) | (722,832) | -11.38% | -28.33% |
| Net interest margin and valuation income on financial instruments after impairment on loans and financial leases and off balance sheet credit instruments | 4,771,247 | 6,077,118 | 27.37% | 1,559,750 | 2,073,622 | 2,059,098 | -0.70% | 32.01% |
| Fees and comissions income | | | | | | | | |
| Banking services | 419,595 | 494,630 | 17.88% | 140,811 | 161,129 | 173,773 | 7.85% | 23.41% |
| Credit and debit card fees and commercial establishments | 1,164,887 | 1,341,493 | 15.16% | 384,802 | 442,135 | 471,856 | 6.72% | 22.62% |
| Brokerage | 21,270 | 19,417 | -8.71% | 6,624 | 6,674 | 6,171 | -7.54% | -6.85% |
| Acceptances and Guarantees | 42,450 | 41,848 | -1.42% | 13,481 | 13,706 | 13,793 | 0.63% | 2.31% |
| Trust and Securities | 298,865 | 330,236 | 10.50% | 102,672 | 108,603 | 114,950 | 5.84% | 11.96% |
| Investment banking | 23,064 | 22,131 | -4.04% | 6,296 | 9,992 | 10,097 | 1.05% | 60.37% |
| Bancassurance | 364,367 | 450,513 | 23.64% | 133,370 | 153,769 | 163,884 | 6.58% | 22.88% |
| Payments and Collections | 417,322 | 454,448 | 8.90% | 134,700 | 152,621 | 156,782 | 2.73% | 16.39% |
| Other | 132,557 | 180,890 | 36.46% | 51,545 | 63,323 | 65,221 | 3.00% | 26.53% |
| Fees and comission income | 2,884,377 | 3,335,606 | 15.64% | 974,302 | 1,111,952 | 1,176,526 | 5.81% | 20.76% |
| Fees and comission expenses | | | | | | | | |
| Banking services | (396,435) | (467,822) | 18.01% | (137,063) | (143,898) | (162,176) | 12.70% | 18.32% |
| Other | (441,712) | (618,758) | 40.08% | (169,928) | (213,443) | (233,000) | 9.16% | 37.12% |
| Fees and comission expenses | (838,147) | (1,086,580) | 29.64% | (306,991) | (357,341) | (395,176) | 10.59% | 28.73% |
| Total fees and comissions, net | 2,046,230 | 2,249,026 | 9.91% | 667,311 | 754,611 | 781,350 | 3.54% | 17.09% |
| Other operating income | | | | | | | | |
| Derivatives FX contracts | 17,242 | 294,900 | 1610.36% | 67,192 | (22,794) | 384,803 | 1788.18% | 472.69% |
| Net foreign exchange | 72,242 | (161,697) | -323.83% | (51,849) | 56,080 | (393,537) | -801.74% | 659.01% |
| Hedging | 10,244 | 767 | -92.51% | 3,657 | (9,558) | 6,251 | 165.40% | 70.93% |
| Operating leases | 459,912 | 487,406 | 5.98% | 158,636 | 158,982 | 161,254 | 1.43% | 1.65% |
| Gains (or losses) on sale of assets | 38,154 | 59,321 | 55.48% | 18,258 | 21,537 | 23,031 | 6.94% | 26.14% |
| Other reversals | 2,581 | 4,672 | 81.02% | 675 | 484 | 3,235 | 568.39% | 379.26% |
| Other | 352,560 | 396,356 | 12.42% | 144,495 | 131,023 | 148,179 | 13.09% | 2.55% |
| Total other operating income | 952,935 | 1,081,725 | 13.52% | 341,064 | 335,754 | 333,216 | -0.76% | -2.30% |
| Dividends received, and share of profits of equity method investees | | | | | | | | |
| Dividends | 44,475 | 56,570 | 27.20% | 15,288 | 10,417 | 21,411 | 105.54% | 40.05% |
| Equity investments | 25,202 | 24,528 | -2.67% | 4,874 | 3,980 | 5,160 | 29.65% | 5.87% |
| Equity method | 171,541 | 186,113 | 8.49% | 57,923 | 54,118 | 41,403 | -23.49% | -28.52% |
| Gains (Losses) on sale of subsidiaries and associates | - | 72,489 | 100.00% | - | 35,173 | (602) | -101.71% | 100.00% |
| Total dividends received, and share of profits of equity method investees | 241,218 | 339,700 | 40.83% | 78,085 | 103,688 | 67,372 | -35.02% | -13.72% |
| Total operating income, net | 8,011,630 | 9,747,569 | 21.67% | 2,646,210 | 3,267,675 | 3,241,036 | -0.82% | 22.48% |
| | | 3Q19 |
| | | |
| INCOME STATEMENT | As of | Growth | | | | Growth |
| (COP million) | Sep-18 | Sep-19 | sep-19 / sep-18 | 3Q 18 | 2Q 19 | 3Q 19 | 3Q 19 / 2Q 19 | 3Q 19 / 3Q 18 |
| Operating expenses | | | | | | | | |
| Salaries and employee benefits | (1,946,538) | (2,094,063) | 7.58% | (650,487) | (693,150) | (704,950) | 1.70% | 8.37% |
| Bonuses | (315,893) | (394,535) | 24.90% | (103,085) | (98,259) | (150,047) | 52.71% | 45.56% |
| Other administrative and general expenses | (2,171,190) | (2,203,838) | 1.50% | (737,306) | (785,043) | (722,237) | -8.00% | -2.04% |
| Tax contributions and other tax burden | (549,817) | (552,376) | 0.47% | (158,956) | (167,543) | (183,039) | 9.25% | 15.15% |
| Impairment, depreciation and amortization | (363,211) | (581,136) | 60.00% | (131,879) | (179,492) | (222,289) | 23.84% | 68.56% |
| Other expenses | (192,355) | (169,218) | -12.03% | (65,342) | (57,526) | (58,247) | 1.25% | -10.86% |
| Total operating expenses | (5,539,004) | (5,995,166) | 8.24% | (1,847,055) | (1,981,013) | (2,040,809) | 3.02% | 10.49% |
| Profit before tax | 2,472,626 | 3,752,403 | 51.76% | 799,155 | 1,286,662 | 1,200,227 | -6.72% | 50.19% |
| Income tax | (719,582) | (1,018,469) | 41.54% | (213,442) | (323,117) | (304,210) | -5.85% | 42.53% |
| Profit for the year from continuing operations | 1,753,044 | 2,733,934 | 55.95% | 585,713 | 963,545 | 896,017 | -7.01% | 52.98% |
| Non-controlling interest | (96,349) | (85,836) | -10.91% | (42,494) | (27,356) | (17,436) | -36.26% | -58.97% |
| Net income attributable to equity holders of the Parent Company | 1,656,695 | 2,648,098 | 59.84% | 543,219 | 936,189 | 878,581 | -6.15% | 61.74% |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | | BANCOLOMBIA S.A. (Registrant) |
| | | |
| Date: November 6, 2019 | By: | /s/ JAIME ALBERTO VELÁSQUEZ B. |
| | | Name: | Jaime Alberto Velásquez B. |
| | | Title: | Vice President of Strategy and Finance |
