Bancolombia (CIB) 6-K Current report (foreign)

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 May, 2020

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-Fo

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.

Yeso                    Noþ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                    .

 

BANCOLOMBIA S.A. (NYSE: CIB; BVC: BCOLOMBIA, PFBCOLOM) REPORTS FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2020.

· Regarding the current situation, Bancolombia has focused its efforts on maintaining business continuity, the safety of its employees, operating the network of channels in an efficient way and structuring lines of credit for its customers. These actions have impacted more than 2 million clients with loans that amounted more than COP 55 trillion, in Colombia.

· Consolidated net income decreased 59.7% when compared to 1Q19.Net income for 1Q20 decreased by 28.4% when compared to 4Q19.

· Gross loans grew 16.7% when compared to 1Q19.Peso-denominated loans grew 10.4% when compared to 1Q19. Gross loans increased by 11.9% during the quarter. Out of the annual increase 9.5% is explained by the depreciation of COP versus USD.

· Tier 1 ratio was 9.1% on March 31, 2020 and decreased by 95 basis points when compared to March 31, 2019.The capital adequacy ratio was 12.4%.

· The quarter closed with 5.1 million digital accounts:2.6 million Bancolombia a la mano users and 2.5 million users in Nequi, increasing the digital footprint and banking penetration in Colombia.

May 4, 2020. Medellin, Colombia – Today, BANCOLOMBIA S.A. (“Bancolombia” or “the Bank”) announced its earnings results for the first quarter of 2020¹.

___________________________ 

¹This 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 March 31, 2020 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, April 1, 2020 $4,054.54 = US$ 1

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BANCOLOMBIA: Summary of consolidated financial quarterly results

CONSOLIDATED BALANCE SHEET
AND INCOME STATEMENT	Quarter										Growth
(COP million)	1Q19			4Q19			1Q20				1Q20/4Q19			1Q20/1Q19
ASSETS
Net Loans		164,244,399			171,353,348			191,641,880				11.84	%		16.68	%
Investments		17,756,137			16,822,754			18,918,763				12.46	%		6.55	%
Other assets		40,606,646			47,912,011			65,201,377				36.09	%		60.57	%
Total assets		222,607,182			236,088,113			275,762,020				16.80	%		23.88	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits		143,905,924			157,205,312			184,215,627				17.18	%		28.01	%
Other liabilities		52,514,489			50,077,182			62,262,956				24.33	%		18.56	%
Total liabilities		196,420,413			207,282,494			246,478,583				18.91	%		25.49	%
Non-controlling interest		1,803,389			1,921,700			2,093,386		��		8.93	%		16.08	%
Shareholders' equity		24,383,380			26,883,919			27,190,051				1.14	%		11.51	%
Total liabilities and shareholders' equity		222,607,182			236,088,113			275,762,020				16.80	%		23.88	%
Interest income		4,185,128			4,414,591			4,440,555				0.59	%		6.10	%
Interest expense		(1,497,804	)		(1,572,261	)		(1,528,094	)			-2.81	%		2.02	%
Net interest income		2,687,324			2,842,330			2,912,461				2.47	%		8.38	%
Net provisions		(742,926	)		(1,129,679	)		(1,381,650	)			22.30	%		85.97	%
Fees and income from service, net		713,065			776,707			795,929				2.47	%		11.62	%
Other operating income		412,755			453,522			344,500				-24.04	%		-16.54	%
Total Dividends received and equity method		168,640			40,899			(34,053	)			-183.26	%		-120.19	%
Total operating expense		(1,973,344	)		(2,258,651	)		(2,154,514	)			-4.61	%		9.18	%
Profit before tax		1,265,514			725,128			482,673				-33.44	%		-61.86	%
Income tax		(391,142	)		(244,495	)		(116,651	)			-52.29	%		-70.18	%
Net income before non-controlling interest		874,372			480,633			366,022				-23.85	%		-58.14	%
Non-controlling interest		(41,044	)		(11,380	)		(30,138	)			164.83	%		-26.57	%
Net income		833,328			469,253			335,884				-28.42	%		-59.69	%

	Quarter
PRINCIPAL RATIOS	1Q19			4Q19			1Q20
PROFITABILITY
Net interest margin (1) from continuing operations		5.64	%		5.59	%		5.56	%
Return on average total assets (2) from continuing operations		1.50	%		0.79	%		0.54	%
Return on average shareholders´ equity (3)		13.47	%		6.93	%		4.90	%
EFFICIENCY
Operating expenses to net operating income		49.56	%		54.91	%		53.61	%
Operating expenses to average total assets		3.56	%		3.79	%		3.48	%
Operating expenses to productive assets		4.14	%		4.45	%		4.12	%
CAPITAL ADEQUACY
Shareholders' equity to total assets		10.88	%		11.39	%		9.86	%
Technical capital to risk weighted assets		13.28	%		12.82	%		12.42	%
KEY FINANCIAL HIGHLIGHTS
Net income per ADS from continuing operations		1.09			0.60			0.34
Net income per share $COP from continuing operations		866.40			487.88			349.21
P/BV ADS (4)		1.60			1.61			0.89
P/BV Local (5) (6)		1.56			1.57			0.85
P/E (7) from continuing operations		11.55			22.76			17.66
ADR price		51.06			54.79			24.96
Common share price (8)		39,600			44,000			24,100
Weighted average of Preferred Shares outstanding		961,827,000			961,827,000			961,827,000
USD exchange rate (quarter end)		3,174.79			3,277.14			4,054.54

(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.

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1. BALANCE SHEET

1.1. Assets

As of March 31, 2020, Bancolombia’s assets totaled COP 275,762 billion, which represents an increase of 16.8% compared to 4Q19 and of 23.9% compared to 1Q19.

During the quarter, the COP depreciated 23.7% versus the USD and over the past 12 months, it depreciated 27.7%. This depreciation affected assets and liabilities, especially loans and allowances, deposits and shareholders’ equity. The average exchange rate for 1Q20 was 7.7% higher than the one in 4Q19.

The increase in total assets during the year is largely explained by the growth in the loan book and cash.

1.2. Loan Portfolio

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 = 4,054.54 COP)	1Q20			1Q20/4Q19			1Q20		1Q20/4Q19			1Q20		1Q20/4Q19			1Q20			1Q20/4Q19
Commercial loans		83,305,239			4.40	%		48,996,483		30.75	%		12,084,351		5.68	%		132,301,722			12.82	%
Consumer loans		29,506,261			2.99	%		13,886,875		25.05	%		3,425,019		1.07	%		43,393,136			9.15	%
Mortgage loans		13,466,867			1.42	%		13,380,569		24.99	%		3,300,145		1.02	%		26,847,436			11.94	%
Small business loans		800,619			4.01	%		619,047		21.24	%		152,680		-2.01	%		1,419,666			10.88	%
Interests paid in advance		(4,025	)		-27.32	%		-		0.00	%		-		0.00	%		(4,025	)		-27.32	%
Gross loans		127,074,962			3.75	%		76,882,974		28.58	%		18,962,194		3.92	%		203,957,935			11.89	%

In 1Q20, gross loans increased by 11.9% when compared to 4Q19 and 16.7% when compared to 1Q19. Peso-denominated loans grew 10.4% and the dollar-denominated loans (expressed in USD) increased by 1.0% when compared to 1Q19.

As of March 31, 2020, the operations in Banco Agricola in El Salvador, Banistmo in Panama and BAM in Guatemala, represented 30% 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 37.7% and increased by 28.6% during 1Q20 (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 12.7% during the quarter and totaled COP 12,316 billion, equivalent to 6.0% 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
(COP million)	1Q19			4Q19			1Q20			1Q20/4Q19			1Q20/1Q19			loans
Commercial		117,148,684			117,270,014			132,301,722			12.82	%		12.93	%		64.9	%
Consumer		33,520,835			39,754,610			43,393,136			9.15	%		29.45	%		21.3	%
Mortgage		22,869,894			23,983,283			26,847,436			11.94	%		17.39	%		13.2	%
Microcredit		1,203,424			1,280,373			1,419,666			10.88	%		17.97	%		0.7	%
Interests received in advance		(4,851	)		(5,537	)		(4,025	)		-27.31	%		-17.04	%		0.0	%
Total loan portfolio		174,737,986			182,282,743			203,957,935			11.89	%		16.72	%		100.0	%
Allowance for loan losses		(10,493,587	)		(10,929,395	)		(12,316,055	)		12.69	%		17.37	%
Total loans, net		164,244,399			171,353,348			191,641,880			11.84	%		16.68	%

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1.3. Investment Portfolio

As of March 31, 2020, Bancolombia’s net investment portfolio totaled COP 18,919 billion, increasing by 12.5% from the end of 4Q19 and by 6.5% from the end of 1Q19.

At the end of 1Q20, the debt securities portfolio had a duration of 20.6 months and a weighted average yield to maturity of 5.7%.

1.4. Goodwill and intangibles

As of 1Q20, Bancolombia’s goodwill and intangibles totaled COP 8,856 billion, increasing by 22.4% compared to 4Q19. This variation is explained by the depreciation of the COP against the USD during the quarter.

1.5. Funding

As of March 31, 2020, Bancolombia’s liabilities totaled COP 246, 479 billion, increasing by 18.9% from the end of 4Q19 and by 25.5% compared to 1Q19.

Deposits by customers totaled COP 184, 216 billion (or 74.5% of liabilities) at the end of 1Q20, increasing by 17.2% when compared to 4Q19 and by 28.0% over the last 12 months. The net loans to deposits ratio was 104.0% at the end of 1Q20 decreasing when compared to 109.0% at the end of 4Q19.

Bancolombia’s funding strategy during the last months has been to maintain 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
COP Million	1Q19				4Q19				1Q20
Checking accounts		22,340,529	12	%		25,159,676	13	%		32,711,508	14	%
Saving accounts		59,253,212	32	%		66,914,834	35	%		79,142,429	35	%
Time deposits		61,206,938	33	%		63,635,078	33	%		71,297,168	31	%
Other deposits		4,153,979	2	%		2,809,461	1	%		1,250,377	1	%
Long term debt		19,930,388	11	%		19,921,515	10	%		23,090,151	10	%
Loans with banks		16,572,104	9	%		15,323,022	8	%		20,873,414	9	%
Total Funds		183,457,150	100	%		193,763,586	100	%		228,365,047	100	%

1.6. Shareholders’ Equity and Regulatory Capital

Shareholders’ equity at the end of 1Q20 was COP 27,190 billion, increasing by 1.1% compared to 4Q19 and by 11.5% when compared to 1Q19.

Bancolombia’s capital adequacy ratio was 12.42% in 1Q20, 342 basis points above the minimum 9% required by the Colombian regulator, while the basic capital ratio (Tier 1) to risk weighted assets was 9.07%, 457 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 6.7% at the end of 1Q20.

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.

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TECHNICAL CAPITAL RISK WEIGHTED ASSETS
Consolidated (COP millions)	1Q19		%			4Q19		%			1Q20		%
Basic capital (Tier I)		19,456,053		10.02	%		20,023,333		9.57	%		21,424,148		9.07	%
Additional capital (Tier II)		6,332,532		3.26	%		6,800,436		3.25	%		7,914,711		3.35	%
Technical capital(1)		25,788,585					26,823,769					29,338,859
Risk weighted assets including market risk		194,238,096					209,182,274					236,198,851
CAPITAL ADEQUACY(2)				13.28	%				12.82	%				12.42	%

(1) Technical capital is the sum of basic and additional capital.

(2) Capital adequacy is technical capital divided by risk-weighted assets.

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2. INCOME STATEMENT

Net income totaled COP 336 billion in 1Q20, or COP 349.21 per share - USD 0.34 per ADR. This net income represents a decrease of 28.4% compared to 4Q19 and of 59.7% compared to 1Q19. Bancolombia’s annualized ROE for 1Q20 was 4.9% and 9.9% for the last twelve months.

2.1. Net Interest Income

Net interest income totaled COP 2,912 billion in 1Q20, 2.5% more than the one reported in 4Q19, and 8.4% more than the figure for 1Q19.

During 1Q20, the investment, interest rate derivatives and repos portfolio generated COP 93 billion, down by 29.7% from 4Q19.

Net Interest Margin

The annualized net interest margin was stable in 5.6% during 1Q20. The annualized net interest margin for investments was 0.4%, and the annualized net interest margin of the loan portfolio was 6.2%, stable when compared to the one reported in 4Q19.

Annualized Interest
Margin	1Q19			4Q19			1Q20
Loans' Interest margin		5.9	%		6.2	%		6.2	%
Debt investments' margin		2.7	%		0.7	%		0.4	%
Net interest margin		5.6	%		5.6	%		5.6	%

Total funding cost decreased during 1Q20. Savings and checking accounts represented the same proportion of the total funding as in 4Q19, and the annualized average weighted cost of deposits was 2.56% in 1Q20, decreasing by 23 basis points when compared to 4Q19 and by 19 basis points when compared to 1Q19.

Average weighted
funding cost	+1Q19+			+4Q19+			+1Q20+
Checking accounts		0.00	%		0.00	%		0.00	%
Saving accounts		1.75	%		1.72	%		1.56	%
Time deposits		4.84	%		4.88	%		4.73	%
Total deposits		2.75	%		2.79	%		2.56	%
Long term debt		5.71	%		5.86	%		4.46	%
Loans with banks		2.97	%		2.52	%		2.48	%
Total funding cost		3.10	%		3.08	%		2.75	%

2.2. Fees and Income from Services

During 1Q20, net fees and income from services totaled COP 796 billion, increasing by 2.5% compared to 4Q19, and by 11.6% compared to 1Q19. 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 decreased by 0.5% compared to 4Q19 and increased by 11.8% compared to 1Q19. Fees from asset management and trust services decreased by 3.3% compared to 4Q19 and increased by 4.7% compared to 1Q19, due to an increase in the assets under management. Fees from our bancassurance business decreased by 10.3% compared to 4Q19 and increased by 30.0% with respect to 1Q19.

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The following table summarizes Bancolombia’s market share in the credit card business in Colombia:

ACCUMULATED CREDIT CARD BILLING					%			2020
(COP millions)	Jan-19		Jan-20		Growth			Market Share
Bancolombia VISA		719,742		860,311		19.53	%		11.64	%
Bancolombia Mastercard		590,563		737,260		24.84	%		9.97	%
Bancolombia American Express		296,985		305,981		3.03	%		4.14	%
Total Bancolombia		1,607,290		1,903,551		18.43	%		25.75	%
Colombian Credit Card Market		6,316,568		7,392,894		17.04	%

CREDIT CARD MARKET SHARE					%			2020
(Outstanding credit cards)	Jan-19		Jan-20		Growth			Market Share
Bancolombia VISA		912,441		983,436		7.78	%		5.47	%
Bancolombia Mastercard		1,015,847		1,050,149		3.38	%		5.84	%
Bancolombia American Express		592,046		566,414		-4.33	%		3.15	%
Total Bancolombia		2,520,334		2,599,999		3.16	%		14.47	%
Colombian Credit Card Market		16,998,439		17,973,240		5.73	%

Source: Superintendencia Financiera de Colombia

2.3. Other Operating Income

Total other operating income was COP 345 billion in 1Q20, decreasing by 24.0% compared to 4Q19 and by 16.5% compared to 1Q19, explain by lower income generated from FX Derivatives.

Revenues from operating leases totaled COP 182 billion in 1Q20, decreasing by 6.5% compared to 4Q19 and increasing by 9.1% compared to those reported in 1Q19. 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 9,079 billion at the end of 1Q20 and represented 4.6% of total gross loans, increasing when compared to 4Q19, when past due loans represented 4.3% of total gross loans. During 1Q20, Charge-offs totaled COP 685 billion.

The coverage, measured by the ratio of allowances for loans losses (principal) to PDLs (overdue 30 days), was 124.9% at the end of 1Q20, decreasing compared to 133.9% at the end of 4Q19.

The deterioration of the loan portfolio (new past due loans including charge-offs) was COP 2.2 trillion in 1Q20. Provision charges (net of recoveries) totaled COP 1.4 trillion in 1Q20.

The increase in provisions during the quarter was explained by an expected deterioration in the consumer portfolio in line with the growth in this segment, as well as, some deterioration in the corporate portfolio in Central America. On the other hand, there was an update of the expected loss models with new macroeconomic information and an estimation of the impairment generated by COVID-19 in the loan portfolio.

Provisions as a percentage of the average gross loans were 2.9% for 1Q20 and 2.2% for the last 12 months.

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Bancolombia maintains a strong balance sheet supported by an adequate level of loan loss reserves. Allowances (for the principal) for loan losses totaled COP 11,343 billion, or 5.7% of total loans at the end of 1Q20, stable when compared to 4Q19.

The following tables present key metrics related to asset quality:

ASSET QUALITY	As of
(COP millions)	1Q19			4Q19			1Q20
Total 30-day past due loans		8,454,008			7,530,472			9,078,907
Allowance for loan losses (1)		9,553,239			10,086,202			11,343,286
Past due loans to total loans		4.98	%		4.27	%		4.58	%
Allowances to past due loans		113.00	%		133.94	%		124.94	%
Allowance for loan losses as a percentage of total loans		5.63	%		5.71	%		5.72	%

(1) Allowances are reserves for the principal of loans.

PDL Per Category				30 days
	% Of loan Portfolio			1Q19			4Q19			1Q20
Commercial loans		64.9	%		4.42	%		3.49	%		3.86	%
Consumer loans		21.3	%		4.92	%		4.80	%		4.93	%
Mortgage loans		13.2	%		7.55	%		6.69	%		7.09	%
Microcredit		0.7	%		11.58	%		11.30	%		11.87	%
PDL TOTAL					4.98	%		4.27	%		4.58	%

PDL Per Category				90 days
	% Of loan Portfolio			1Q19			4Q19			1Q20
Commercial loans		64.9	%		3.07	%		2.88	%		3.02	%
Consumer loans		21.3	%		2.46	%		2.66	%		2.73	%
Mortgage loans*		13.2	%		3.56	%		3.45	%		3.41	%
Microcredit		0.7	%		7.73	%		7.39	%		7.90	%
PDL TOTAL					3.05	%		2.94	%		3.04	%

* Mortgage loans that were overdue were calculated for past due loans for 120 days instead of 90 days.

2.5. Operating Expenses

During 1Q20, operating expenses totaled COP 2,155 billion, decreasing by 4.6% with respect to 4Q19 and increasing by 9.2% with respect to 1Q19.

Personnel expenses (salaries, bonus plan payments and compensation) totaled COP 921 billion in 1Q20, increasing by 4.9% compared to 4Q19 and by 9.4% compared to 1Q19.

During 1Q20, administrative expenses totaled COP 750 billion, decreasing by 13.4% compared to 4Q19 and increasing by 7.6% as compared to 1Q19.

Depreciation and amortization expenses totaled COP 208 billion in 1Q20, decreasing by 14.4% compared to 4Q19 and increasing by 16.2% compared to 1Q19.

As of March 31, 2020, Bancolombia had 31,038 employees, owned 976 branches, 6,151 ATMs, 17,556 banking agents and served more than 15 million customers.

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2.6. Taxes

Income tax expense was COP 117 billion for 1Q20, decreasing by 52.3% when compared to the income tax registered in 4Q19, and by 70.2% compared to 1Q19.

The decrease is mainly explained by Bancolombia S.A.. Some of the aspects that explained the decrease are related with the difference between taxed bases under fiscal Colombian regulations and IFRS regulations, the liability management exercises with bond issues made during 2019 and early 2020, exemptions related with mortgage portfolio for social housing and investments in productive fixed assets.

Of the total income tax for 1Q20, Colombia participated with 57% compared to 32% in El Salvador, 9% in Guatemala and 2% in Panama.

9

 

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)	1Q19			4Q19			1Q20			1Q20/4Q19			1Q20/1Q19
ASSETS
Gross loans		123,364,254			129,564,592			136,925,149			5.68	%		10.99	%
Allowances for loans		(8,668,846	)		(8,658,314	)		(9,363,108	)		8.14	%		8.01	%
Investments		18,677,540			17,328,031			17,977,938			3.75	%		-3.75	%
Other assets		20,418,312			24,296,776			35,080,308			44.38	%		71.81	%
Total assets		153,791,261			162,531,085			180,620,288			11.13	%		17.45	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits		94,471,152			102,751,326			116,410,513			13.29	%		23.22	%
Other liabilities		43,098,920			42,262,264			49,433,343			16.97	%		14.70	%
Total liabilities		137,570,072			145,013,590			165,843,857			14.36	%		20.55	%
Shareholders' equity		16,221,188			17,517,495			14,776,431			-15.65	%		-8.91	%
Total liabilities and shareholders' equity		153,791,261			162,531,085			180,620,288			11.13	%		17.45	%
Interest income		3,220,916			3,305,608			3,313,991			0.25	%		2.89	%
Interest expense		(1,169,949	)		(1,168,187	)		(1,134,682	)		-2.87	%		-3.01	%
Net interest income		2,050,967			2,137,421			2,179,309			1.96	%		6.26	%
Net provisions		(635,548	)		(717,018	)		(1,128,713	)		57.42	%		77.60	%
Fees and income from service, net		478,934			492,920			517,776			5.04	%		8.11	%
Other operating income		518,915			229,282			441,160			92.41	%		-14.98	%
Total operating expense		(1,335,657	)		(1,561,229	)		(1,486,287	)		-4.80	%		11.28	%
Profit before tax		1,077,611			581,375			523,245			-10.00	%		-51.44	%
Income tax		(306,614	)		(183,969	)		(42,854	)		-76.71	%		-86.02	%
Net income		770,997			397,406			480,391			20.88	%		-37.69	%

BANISTMO- PANAMA

CONSOLIDATED BALANCE SHEET
AND INCOME STATEMENT	Quarter									Growth
(COP million)	1Q19			4Q19			1Q20			1Q20/4Q19			1Q20/1Q19
ASSETS
Gross loans		24,327,536			25,254,355			31,908,019			26.35	%		31.16	%
Allowances for loans		(777,994	)		(1,005,345	)		(1,310,026	)		30.31	%		68.38	%
Investments		3,509,631			4,258,122			4,740,305			11.32	%		35.07	%
Other assets		3,672,343			4,689,864			6,227,366			32.78	%		69.57	%
Total assets		30,731,516			33,196,996			41,565,664			25.21	%		35.25	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits		20,331,556			22,113,871			27,149,497			22.77	%		33.53	%
Other liabilities		7,082,246			7,518,241			9,991,534			32.90	%		41.08	%
Total liabilities		27,413,802			29,632,112			37,141,031			25.34	%		35.48	%
Shareholders' equity		3,317,714			3,564,884			4,424,633			24.12	%		33.36	%
Total liabilities and shareholders' equity		30,731,516			33,196,996			41,565,664			25.21	%		35.25	%
Interest income		436,081			487,571			496,305			1.79	%		13.81	%
Interest expense		(175,150	)		(203,752	)		(215,803	)		5.91	%		23.21	%
Net interest income		260,931			283,819			280,502			-1.17	%		7.50	%
Net provisions		(46,895	)		(214,615	)		(116,987	)		-45.49	%		149.46	%
Fees and income from service, net		43,627			54,958			51,290			-6.67	%		17.56	%
Other operating income		8,723			14,662			2,756			-81.20	%		-68.40	%
Total operating expense		(153,174	)		(176,817	)		(169,721	)		-4.01	%		10.80	%
Profit before tax		113,212			(37,994	)		47,840			-225.91	%		-57.74	%
Income tax		(21,197	)		(2,555	)		(2,564	)		0.36	%		-87.90	%
Net income		92,016			(40,548	)		45,276			-211.66	%		-50.80	%

10

 

BANCO AGRÍCOLA- EL SALVADOR

CONSOLIDATED BALANCE SHEET
AND INCOME STATEMENT	Quarter									Growth
(COP million)	1Q19			4Q19			1Q20			1Q20/4Q19			1Q20/1Q19
ASSETS
Gross loans		10,537,580			11,446,896			14,651,706			28.00	%		39.04	%
Allowances for loans		(444,644	)		(443,923	)		(566,535	)		27.62	%		27.41	%
Investments		898,094			996,712			1,392,973			39.76	%		55.10	%
Other assets		3,659,513			4,004,610			6,026,577			50.49	%		64.68	%
Total assets		14,650,542			16,004,294			21,504,721			34.37	%		46.78	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits		10,381,328			11,719,716			16,115,572			37.51	%		55.24	%
Other liabilities		2,682,895			2,422,837			3,399,020			40.29	%		26.69	%
Total liabilities		13,064,222			14,142,553			19,514,591			37.98	%		49.37	%
Shareholders' equity		1,586,320			1,861,741			1,990,129			6.90	%		25.46	%
Total liabilities and shareholders' equity		14,650,542			16,004,294			21,504,721			34.37	%		46.78	%
Interest income		251,911			297,667			293,919			-1.26	%		16.68	%
Interest expense		(68,432	)		(79,091	)		(78,703	)		-0.49	%		15.01	%
Net interest income		183,479			218,576			215,216			-1.54	%		17.30	%
Net provisions		(19,908	)		(8,110	)		(45,557	)		461.75	%		128.84	%
Fees and income from service, net		48,401			54,047			53,704			-0.63	%		10.96	%
Other operating income		1,625			573			4,479			681.17	%		175.61	%
Total operating expense		(113,379	)		(142,453	)		(126,417	)		-11.26	%		11.50	%
Profit before tax		100,217			122,634			101,425			-17.29	%		1.20	%
Income tax		(33,037	)		(44,772	)		(36,510	)		-18.45	%		10.51	%
Net income		67,180			77,862			64,915			-16.63	%		-3.37	%

GRUPO AGROMERCANTIL HOLDING – GUATEMALA

CONSOLIDATED BALANCE SHEET
AND INCOME STATEMENT	Quarter									Growth
(COP million)	1Q19			4Q19			1Q20			1Q20/4Q19			1Q20/1Q19
ASSETS
Gross loans		10,404,489			11,385,421			14,812,948			30.10	%		42.37	%
Allowances for loans		(447,908	)		(689,839	)		(890,059	)		29.02	%		98.71	%
Investments		1,390,548			1,213,475			1,574,785			29.77	%		13.25	%
Other assets		2,022,324			2,424,575			3,626,953			49.59	%		79.35	%
Total assets		13,369,452			14,333,631			19,124,627			33.42	%		43.05	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits		9,284,692			10,184,939			13,650,619			34.03	%		47.02	%
Other liabilities		2,814,955			2,909,043			3,995,014			37.33	%		41.92	%
Total liabilities		12,099,647			13,093,982			17,645,634			34.76	%		45.84	%
Non-controlling interest		19,544			20,680			19,986			-3.35	%		2.26	%
Shareholders' equity		1,250,261			1,218,970			1,459,007			19.69	%		16.70	%
Total liabilities and shareholders' equity		13,369,452			14,333,631			19,124,627			33.42	%		43.05	%
Interest income		226,038			271,395			270,430			-0.36	%		19.64	%
Interest expense		(102,826	)		(111,158	)		(116,998	)		5.25	%		13.78	%
Net interest income		123,212			160,238			153,432			-4.25	%		24.53	%
Net provisions		(40,274	)		(151,967	)		(62,314	)		-59.00	%		54.72	%
Fees and income from service, net		30,135			35,658			36,198			1.52	%		20.12	%
Other operating income		18,325			23,412			17,768			-24.10	%		-3.04	%
Total operating expense		(120,529	)		(121,387	)		(129,366	)		6.57	%		7.33	%
Profit before tax		10,869			(54,046	)		15,719			-129.08	%		44.63	%
Income tax		(2,502	)		11,705			(10,153	)		-186.74	%		305.73	%
Net income before non-controlling interest		8,366			(42,342	)		5,566			-113.15	%		-33.47	%
Non-controlling interest		(1,121	)		(1,112	)		(1,276	)		14.73	%		13.82	%
Net income		7,245			(43,454	)		4,291			-109.87	%		-40.78	%

11

 

4. COVID-19 CONSIDERATIONS

Bancolombia has implemented business continuity plans that have enabled it to serve its operation and provide uninterrupted service to its customers in atypical circumstances of confinement. In addition, commercial measures have been taken for the benefit of clients, monitoring strategies to maintain liquidity at adequate levels and special procedures for remote operation and home-office.

The current situation associated with COVID-19 has caused uncertainty and business disruption globally, therefore significant impacts are anticipated on the performance of the global economy and macroeconomic variables in the countries in which Bancolombia operates.

As a result, the banking sector in general, including Bancolombia, is exposed to changes in its business performance and outlook. The bank is exposed to deterioration of the loan portfolio by impacts on customers and by the materialization of losses from operational risk.

The Bank will monitor changes in economic conditions and macroeconomic scenarios as new information becomes available and will keep the market informed.

12

 

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 15 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.

Contact Information
Bancolombia’s Investor Relations
Phone:	(574) 4041837 / (574) 4043917 / (574) 4041918
E-mail:	IR@bancolombia.com.co
Contacts:	Alejandro Mejia (IR Manager) / Juliana Álvarez (Analyst) / Santiago López (Analyst)
Website:	http://www.grupobancolombia.com/wps/portal/about-us/corporate-information/investor-relations/

13

 

BALANCE SHEET										Growth
(COP million)	Mar-19			Dec-19			Mar-20			mar-20 / dec-19			mar-20 / mar-19			% of Assets			% of Liabilities
ASSETS
Cash and balances at central bank		15,256,359			18,256,065			27,213,050			49.06	%		78.37	%		9.87	%
Interbank borrowings		2,760,106			2,465,913			4,107,961			66.59	%		48.83	%		1.49	%
Reverse repurchase agreements and other similar secured lend		875,565			3,016,064			1,952,895			-35.25	%		123.04	%		0.71	%
Financial assets investments		17,756,137			16,822,754			18,918,763			12.46	%		6.55	%		6.86	%
Derivative financial instruments		1,436,729			1,902,955			6,731,446			253.74	%		368.53	%		2.44	%
Loans and advances to customers		174,737,986			182,282,743			203,957,935			11.89	%		16.72	%		73.96	%
Allowance for loan and lease losses		(10,493,587	)		(10,929,395	)		(12,316,055	)		12.69	%		17.37	%		-4.47	%
Investment in associates and joint ventures		2,191,046			2,367,757			2,334,034			-1.42	%		6.53	%		0.85	%
Goodwill and Intangible assets, net		7,026,807			7,233,312			8,856,352			22.44	%		26.04	%		3.21	%
Premises and equipment, net		3,156,183			3,827,865			4,002,305			4.56	%		26.81	%		1.45	%
Investment property		1,746,856			1,992,964			2,002,691			0.49	%		14.65	%		0.73	%
Right of use assets		1,709,320			1,692,116			1,890,963			11.75	%		10.63	%		0.69	%
Prepayments		359,489			365,143			433,880			18.82	%		20.69	%		0.16	%
Tax receivables		837,207			802,074			1,078,251			34.43	%		28.79	%		0.39	%
Deferred tax		287,520			401,002			502,880			25.41	%		74.90	%		0.18	%
Assets held for sale and inventories		526,310			518,749			550,040			6.03	%		4.51	%		0.20	%
Other assets		2,437,149			3,070,032			3,544,629			15.46	%		45.44	%		1.29	%
Total assets		222,607,182			236,088,113			275,762,020			16.80	%		23.88	%		100.00	%
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposit by customers		143,905,924			157,205,312			184,215,627			17.18	%		28.01	%		66.80	%		74.74	%
Interbank Deposits		1,510,211			1,363,679			1,681,287			23.29	%		11.33	%		0.61	%		0.68	%
Derivative financial instrument		1,098,847			1,860,812			4,747,806			155.15	%		332.07	%		1.72	%		1.93	%
Borrowings from other financial institutions		15,061,893			13,959,343			19,192,127			37.49	%		27.42	%		6.96	%		7.79	%
Debt securities in issue		19,930,388			19,921,515			23,090,151			15.91	%		15.85	%		8.37	%		9.37	%
Lease liability		1,946,146			1,831,585			2,025,310			10.58	%		4.07	%		0.73	%		0.82	%
Preferred shares		541,340			584,204			541,340			-7.34	%		0.00	%		0.20	%		0.22	%
Repurchase agreements and other similar secured borrowing		3,048,734			1,313,737			185,855			-85.85	%		-93.90	%		0.07	%		0.08	%
Liabilities relating to assets held for sale		2,117			-			-			0.00	%		-100.00	%		0.00	%		0.00	%
Current tax		556,208			195,757			518,351			164.79	%		-6.81	%		0.19	%		0.21	%
Deferred tax		1,155,028			1,521,958			1,431,240			-5.96	%		23.91	%		0.52	%		0.58	%
Employees benefit plans		127,606			768,947			813,001			5.73	%		537.12	%		0.29	%		0.33	%
Other liabilities		7,535,971			6,755,645			8,036,488			18.96	%		6.64	%		2.91	%		3.26	%
Total liabilities		196,420,413			207,282,494			246,478,583			18.91	%		25.49	%		89.38	%		100.00	%
SHAREHOLDERS' EQUITY
Share Capital		480,914			480,914			480,914			0.00	%		0.00	%		0.17	%
Additional paid-in-capital		4,857,454			4,857,454			4,857,454			0.00	%		0.00	%		1.76	%
Appropriated reserves		10,321,192			10,413,092			11,286,956			8.39	%		9.36	%		4.09	%
Retained earnings		5,646,052			7,812,361			5,744,491			-26.47	%		1.74	%		2.08	%
Accumulated other comprehensive income (loss), net of tax		3,077,768			3,320,098			4,820,236			45.18	%		56.61	%		1.75	%
Stockholders’ equity attributable to the owners of the parent company		24,383,380			26,883,919			27,190,051			1.14	%		11.51	%		9.86	%
Non-controlling interest		1,803,389			1,921,700			2,093,386			8.93	%		16.08	%		0.76	%
Total liabilities and equity		222,607,182			236,088,113			275,762,020			16.80	%		23.88	%		100.00	%

14

 

INCOME STATEMENT										Growth
(COP million)	1Q 19			4Q 19			1Q 20			1Q 20 / 4Q 19			1Q 20 / 1Q 19
Interest income and expenses
Interest on loans and financial leases
Commercial		1,821,786			1,818,842			1,810,797			-0.44	%		-0.60	%
Consumer		1,199,503			1,439,661			1,478,946			2.73	%		23.30	%
Small business loans		36,226			36,741			38,042			3.54	%		5.01	%
Mortgage		500,638			484,835			508,069			4.79	%		1.48	%
Leasing		472,663			487,800			496,314			1.75	%		5.00	%
Interest income on loans and financial leases		4,030,816			4,267,879			4,332,168			1.51	%		7.48	%
Interest income on overnight and market funds		20,031			14,635			15,502			5.92	%		-22.61	%
Interest and valuation on Investments at amortized cost
Debt investments, net		35,738			43,423			46,014			5.97	%		28.75	%
Net gains from investment activities at fair value through income statement
Debt investments		205,204			75,043			74,816			-0.30	%		-63.54	%
Derivatives		(65,099	)		26,570			(28,792	)		-208.36	%		-55.77	%
Repos		(38,954	)		(18,846	)		(6,710	)		-64.40	%		-82.77	%
Other		(2,608	)		5,887			7,557			28.37	%		-389.76	%
Total Net gains from investment activities at fair value through profit and loss		98,543			88,654			46,871			-47.13	%		-52.44	%
Total Interest and valuation on investments		134,281			132,077			92,885			-29.67	%		-30.83	%
Total interest and valuation		4,185,128			4,414,591			4,440,555			0.59	%		6.10	%
Interest expense
Borrowing costs		(164,684	)		(142,643	)		(136,092	)		-4.59	%		-17.36	%
Overnight funds		(4,484	)		(4,808	)		(3,609	)		-24.94	%		-19.51	%
Debt securities in issue		(287,283	)		(300,715	)		(239,952	)		-20.21	%		-16.48	%
Deposits		(987,067	)		(1,077,907	)		(1,098,935	)		1.95	%		11.33	%
Preferred Shares Dividends		(15,044	)		(14,727	)		(14,837	)		0.75	%		-1.38	%
Interest right of use assets		(33,511	)		(25,666	)		(29,963	)		16.74	%		-10.59	%
Other interest (expense)		(5,731	)		(5,795	)		(4,706	)		-18.79	%		-17.89	%
Total interest expenses		(1,497,804	)		(1,572,261	)		(1,528,094	)		-2.81	%		2.02	%
Net interest margin and valuation income on financial instruments before impairment on loans and financial leases and off balance sheet credit instruments		2,687,324			2,842,330			2,912,461			2.47	%		8.38	%
Credit impairment charges on loans and advance and financial leases		(861,396	)		(1,239,786	)		(1,466,923	)		18.32	%		70.30	%
Recovery of charged-off loans		115,751			128,903			94,301			-26.84	%		-18.53	%
Credit impairment charges on/recoveries on off balance sheet credit instruments		3,664			(14,326	)		(1,648	)		-88.50	%		-144.98	%
Credit impairment charges/recoveries on investments		(945	)		(4,470	)		(7,380	)		65.10	%		680.95	%
Total credit impairment charges, net		(742,926	)		(1,129,679	)		(1,381,650	)		22.30	%		85.97	%
Net interest margin and valuation income on financial instruments after impairment on loans and financial leases and off balance sheet credit instruments		1,944,398			1,712,651			1,530,811			-10.62	%		-21.27	%
Fees and comissions income
Banking services		159,729			173,821			154,683			-11.01	%		-3.16	%
Credit and debit card fees and commercial establishments		427,503			480,452			478,106			-0.49	%		11.84	%
Brokerage		6,572			7,117			6,619			-7.00	%		0.72	%
Acceptances and Guarantees		14,349			14,175			14,884			5.00	%		3.73	%
Trust and Securities		106,683			115,568			111,711			-3.34	%		4.71	%
Investment banking		2,042			16,860			22,783			35.13	%		1015.72	%
Bancassurance		132,859			192,513			172,697			-10.29	%		29.99	%
Payments and Collections		145,045			169,310			149,446			-11.73	%		3.03	%
Other		52,346			73,550			62,700			-14.75	%		19.78	%
Fees and comission income		1,047,128			1,243,366			1,173,629			-5.61	%		12.08	%
Fees and comission expenses											0.00	%		0.00	%
Banking services		(161,748	)		(162,761	)		(156,525	)		-3.83	%		-3.23	%
Other		(172,315	)		(303,898	)		(221,175	)		-27.22	%		28.36	%
Fees and comission expenses		(334,063	)		(466,659	)		(377,700	)		-19.06	%		13.06	%
Total fees and comissions, net		713,065			776,707			795,929			2.47	%		11.62	%
Other operating income
Derivatives FX contracts		(67,109	)		(397,351	)		1,536,289			-486.63	%		-2389.24	%
Net foreign exchange		175,760			483,983			(1,509,236	)		-411.84	%		-958.69	%
Hedging		4,074			(104	)		(259	)		149.04	%		-106.36	%
Operating leases		167,170			195,119			182,379			-6.53	%		9.10	%
Gains (or losses) on sale of assets		14,753			34,227			25,808			-24.60	%		74.93	%
Other reversals		953			747			1,471			96.92	%		54.35	%
Other		117,154			136,901			108,048			-21.08	%		-7.77	%
Total other operating income		412,755			453,522			344,500			-24.04	%		-16.54	%
Dividends received, and share of profits of equity method investees
Dividends		24,742			27,613			3,382			-87.75	%		-86.33	%
Equity investments		15,388			46,679			(27,501	)		-158.92	%		-278.72	%
Equity method		90,592			63,118			(14,427	)		-122.86	%		-115.93	%
Others		37,918			(96,511	)		4,493			-104.66	%		-88.15	%
Total dividends received, and share of profits of equity method investees		168,640			40,899			(34,053	)		-183.26	%		-120.19	%
Total operating income, net		3,238,858			2,983,779			2,637,187			-11.62	%		-18.58	%

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INCOME STATEMENT										Growth
(COP million)	1Q 19			4Q 19			1Q 20			1Q 20 / 4Q 19			1Q 20 / 1Q 19
Operating expenses
Salaries and employee benefits		(695,963	)		(712,612	)		(776,448	)		8.96	%		11.56	%
Bonuses		(146,229	)		(165,614	)		(144,585	)		-12.70	%		-1.12	%
Other administrative and general expenses		(696,558	)		(865,220	)		(749,551	)		-13.37	%		7.61	%
Tax contributions and other tax burden		(201,794	)		(205,444	)		(221,813	)		7.97	%		9.92	%
Impairment, depreciation and amortization		(179,355	)		(243,454	)		(208,474	)		-14.37	%		16.24	%
Other expenses		(53,445	)		(66,307	)		(53,643	)		-19.10	%		0.37	%
Total operating expenses		(1,973,344	)		(2,258,651	)		(2,154,514	)		-4.61	%		9.18	%
Profit before tax		1,265,514			725,128			482,673			-33.44	%		-61.86	%
Income tax		(391,142	)		(244,495	)		(116,651	)		-52.29	%		-70.18	%
Profit for the year from continuing operations		874,372			480,633			366,022			-23.85	%		-58.14	%
Non-controlling interest		(41,044	)		(11,380	)		(30,138	)		164.83	%		-26.57	%
Net income attributable to equity holders of the Parent Company		833,328			469,253			335,884			-28.42	%		-59.69	%

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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:  May 4, 2020	By:	/s/  JOSE HUMBERTO ACOSTA MARTIN.
		Name:	Jose Humberto Acosta Martin.
		Title:	Vice President of Finance

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