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 March, 2010.
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-F þ Form 40-F o
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 o No þ
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .
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| 4Q09 |
BANCOLOMBIA S.A. (NYSE: CIB) REPORTS CONSOLIDATED FOURTH-QUARTER 2009 NET
INCOME OF COP 371 BILLION, AND FULL-YEAR 2009 NET INCOME OF 1,257 BILLION
COLOMBIAN PESOS (COP 1,595 PER SHARE - USD 3.12 PER ADR)
RETURN ON AVERAGE SHAREHOLDER´S EQUITY
WAS 19.6% FOR FULL-YEAR 2009
| · | Strong balance sheet: reserves for loan losses represented 5.8% of total loans and 149% of past due loans at the end of 4Q09, while capital adequacy finished 2009 at 13.2% (Tier 1 ratio of 10.4%), higher than the 11.2% (Tier 1 ratio of 9.0%) reported at the end of 2008. |
| · | Stable asset quality: past due loans, those more than 30 days overdue, represented 3.9% of gross loans, decreasing from 4.1% in 3Q09. |
| · | Solid liquidity position: deposits increased 4% during 2009, while the ratio of net loans to deposits (including borrowings from development banks) was 88% at the end of the year. |
| · | Sequential recurring NIM expansion: After decreasing significantly throughout 2009, recurring net interest margin was 6.7% in 4Q09, up from 6.3% in 3Q09. |
| · | Credit cost remained high: Provision charges, net of recoveries, totaled COP 301 billion for 4Q09 and COP 1,153 billion for full-year 2009 (2.6% of average loans). |
| · | Credit demand remained low: Although stable during 4Q09, loans and financial leases decreased 6% during the year. This performance was driven primarily by higher than anticipated prepayments and lower demand on corporate loans motivated by increased activity of non-financial firms in the domestic and international debt markets. |
| · | Ranked # 1 in Colombia and El Salvador: # 1 bank in assets, deposits, shareholder´s equity and net income in the main markets where we operate. |
March 1, 2010. Medellín, Colombia – Today, BANCOLOMBIA S.A. (“BANCOLOMBIA” or the “Bank”) announced its financial results for the fourth quarter and fiscal year 2009.
For the year 2009, net income totaled COP 1,257 billion (COP 1,595 per share - USD 3.12 per ADR), decreasing 3% as compared to full-year 2008. Bancolombia’s return on average shareholders’ equity (“ROE”) for 2009 was 19.6%.
For the quarter ended December 31, 2009 (“4Q09”), Bancolombia reports consolidated net income of COP 371 billion (COP 471 per share - U.S. $0.92 per ADR), increasing 16% as compared to the results for the quarter ended September 30, 2009 (“3Q09”) and 26% as compared to the results for the quarter ended December 31, 2008 (“4Q08”).
Bancolombia ended 2009 with COP 61,864 billion in assets, increasing 3% over the last quarter (“QoQ”) but flat as compared to the end of 4Q08 (“YoY”). 1
1 *This report corresponds to the consolidated financial statements of BANCOLOMBIA S.A. (“BANCOLOMBIA”) and its affiliates of which it owns, directly or indirectly more than 50% of the voting capital stock. These financial statements have been prepared in accordance with generally accepted accounting principles in Colombia and the regulations of Superintendencia Financiera de Colombia, collectively COL GAAP. BANCOLOMBIA maintains accounting records in Colombian pesos, referred to herein as “Ps.” or “COP”. Certain monetary amounts, percentages and other figures included in this report have been subject to rounding adjustments. There have been changes to the Bank's principal accounting policies in the quarter ended December 31, 2009, due to regulatory changes implemented by Colombian authorities. For more information please see the section entitled "2.1. Net Interest Income" in this report. The statements of income for the quarter ended December 31, 2009 are 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.
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: January 1, 2010 COP. 2,044.23= US$ 1 | Average Representative Market Rate for 2009 COP. 2,156.29 = US$ |
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| 4Q09 |
BANCOLOMBIA: Summary of consolidated financial quarterly results
AND INCOME STATEMENT | As of | Growth | Quarter | Growth | ||||||||||||||||||||||||||||
(COP millions) | Dec-08 | Dec-09 | Dec-09/Dec-08 | 4Q 08 | 3Q 09 | 4Q 09 | 4Q 09/3Q 09 | 4Q 09/4Q 08 | ||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||||||
| Loans and financial leases, net | 42,508,210 | 39,610,307 | -6.82 | % | 42,508,210 | 39,789,147 | 39,610,307 | -0.45 | % | |||||||||||||||||||||||
| Investment securities, net | 7,278,276 | 8,914,913 | 22.49 | % | 7,278,276 | 8,125,523 | 8,914,913 | 9.71 | % | |||||||||||||||||||||||
| Other assets | 11,996,593 | 13,339,145 | 11.19 | % | 11,996,593 | 12,172,774 | 13,339,145 | 9.58 | % | |||||||||||||||||||||||
| Total assets | 61,783,079 | 61,864,365 | 0.13 | % | 61,783,079 | 60,087,444 | 61,864,365 | 2.96 | % | |||||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||
| Deposits | 40,384,400 | 42,149,330 | 4.37 | % | 40,384,400 | 40,346,861 | 42,149,330 | 4.47 | % | |||||||||||||||||||||||
| Non-interest bearing | 5,723,460 | 6,307,780 | 10.21 | % | 5,723,460 | 4,844,472 | 6,307,780 | 30.21 | % | |||||||||||||||||||||||
| Interest bearing | 34,660,940 | 35,841,550 | 3.41 | % | 34,660,940 | 35,502,389 | 35,841,550 | 0.96 | % | |||||||||||||||||||||||
| Other liabilities | 15,281,834 | 12,682,206 | -17.01 | % | 15,281,834 | 13,145,879 | 12,682,206 | -3.53 | % | |||||||||||||||||||||||
| Total liabilities | 55,666,234 | 54,831,536 | -1.50 | % | 55,666,234 | 53,492,740 | 54,831,536 | 2.50 | % | |||||||||||||||||||||||
| Shareholders' equity | 6,116,845 | 7,032,829 | 14.97 | % | 6,116,845 | 6,594,704 | 7,032,829 | 6.64 | % | |||||||||||||||||||||||
| Total liabilities and shareholders' equity | 61,783,079 | 61,864,365 | 0.13 | % | 61,783,079 | 60,087,444 | 61,864,365 | 2.96 | % | |||||||||||||||||||||||
| Interest income | 6,313,743 | 6,427,698 | 1.80 | % | 1,784,855 | 1,449,770 | 1,534,321 | 5.83 | % | -14.04 | % | |||||||||||||||||||||
| Interest expense | 2,753,341 | 2,625,416 | -4.65 | % | 799,795 | 600,595 | 492,819 | -17.94 | % | -38.38 | % | |||||||||||||||||||||
| Net interest income | 3,560,402 | 3,802,282 | 6.79 | % | 985,060 | 849,175 | 1,041,502 | 22.65 | % | 5.73 | % | |||||||||||||||||||||
| Net provisions | (1,133,167 | ) | (1,153,374 | ) | 1.78 | % | (474,664 | ) | (167,767 | ) | (300,737 | ) | 79.26 | % | -36.64 | % | ||||||||||||||||
| Fees and income from service, net | 1,313,642 | 1,506,273 | 14.66 | % | 361,000 | 368,600 | 390,907 | 6.05 | % | 8.28 | % | |||||||||||||||||||||
| Other operating income | 650,442 | 380,676 | -41.47 | % | 189,316 | 102,352 | 131,927 | 28.90 | % | -30.31 | % | |||||||||||||||||||||
| Total operating expense | (2,566,848 | ) | (2,825,914 | ) | 10.09 | % | (735,284 | ) | (696,152 | ) | (731,789 | ) | 5.12 | % | -0.48 | % | ||||||||||||||||
| Goodwill amortization | (73,149 | ) | (69,231 | ) | -5.36 | % | (34,804 | ) | (15,614 | ) | (15,320 | ) | -1.88 | % | -55.98 | % | ||||||||||||||||
| Non-operating income, net | 13,377 | 78,151 | 484.22 | % | 51,152 | 20,278 | 5,772 | -71.54 | % | -88.72 | % | |||||||||||||||||||||
| Income tax expense | (474,056 | ) | (462,013 | ) | -2.54 | % | (47,323 | ) | (139,674 | ) | (150,858 | ) | 8.01 | % | 218.78 | % | ||||||||||||||||
| Net income | 1,290,643 | 1,256,850 | -2.62 | % | 294,453 | 321,198 | 371,404 | 15.63 | % | 26.13 | % | |||||||||||||||||||||
BANCOLOMBIA: Principal ratios and key indicators
| PRINCIPAL RATIOS | Quarter | As of | ||||||||||||||||||
| 4Q 08 | 3Q 09 | 4Q 09 | Dec-08 | Dec-09 | ||||||||||||||||
| PROFITABILITY | ||||||||||||||||||||
Net interest margin (1) | 7.49 | % | 6.32 | % | 7.89 | % | 7.42 | % | 6.98 | % | ||||||||||
Return on average total assets (2) | 1.95 | % | 2.08 | % | 2.44 | % | 2.34 | % | 2.01 | % | ||||||||||
Return on average shareholders´ equity (3) | 19.80 | % | 20.10 | % | 21.78 | % | 23.68 | % | 19.59 | % | ||||||||||
| EFFICIENCY | ||||||||||||||||||||
| Operating expenses to net operating income | 50.16 | % | 53.92 | % | 47.76 | % | 47.79 | % | 50.89 | % | ||||||||||
| Operating expenses to average total assets | 5.10 | % | 4.61 | % | 4.91 | % | 4.79 | % | 4.62 | % | ||||||||||
| CAPITAL ADEQUACY | ||||||||||||||||||||
Shareholders' equity to total assets | 9.90 | % | 10.98 | % | 11.37 | % | ||||||||||||||
| Technical capital to risk weighted assets | 11.24 | % | 13.80 | % | 13.23 | % | ||||||||||||||
| KEY FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
| Net income per ADS (USD) | 0.67 | 0.85 | 0.92 | 2.92 | 3.12 | |||||||||||||||
| Net income per share $COP | 373.75 | 407.70 | 471.43 | 1,638.23 | 1,595.34 | |||||||||||||||
P/BV ADS (4) | 1.69 | 2.47 | 2.61 | |||||||||||||||||
P/BV Local (5) (6) | 1.70 | 2.44 | 2.59 | |||||||||||||||||
P/E (7) | 8.81 | 12.57 | 12.29 | |||||||||||||||||
ADR price (8) | 23.35 | 42.93 | 45.51 | |||||||||||||||||
Common price (8) | 13,200 | 20,400 | 23,140 | |||||||||||||||||
Shares outstanding (9) | 787,827,003 | 787,827,003 | 787,827,003 | |||||||||||||||||
| USD exchange rate (quarter end) | 2,243.59 | 1,925.49 | 2,044.23 | |||||||||||||||||
(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. (9) Common and preferred.
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| 4Q09 |
| 1. | CONSOLIDATED BALANCE SHEET |
| 1.1. | Assets |
As of December 31, 2009, Bancolombia’s assets totaled COP 61,864 billion, representing an increase of 3% as compared to 3Q09 and flat as compared to 4Q08.
COP-denominated assets totaled COP 46,473 at the end of 4Q09, increasing 4% as compared to 3Q09 and 5% as compared to 4Q08. Assets denominated in currencies other than COP (primarily USD) represented 25% of total assets (or USD 7.5 billion) at the end of 4Q09, and decreased 6% and 3% as compared to 3Q09 and 4Q08 respectively.
Net loans and financial leases accounted for 64% of assets as of the end of 4Q09, decreasing from the 69% they represented at the end of 4Q08, while net investment securities increased to 14% from 12% of total assets at the end of 2008.
| 1.2. | Loan Portfolio |
As of December 31, 2009, Bancolombia’s gross loans totaled COP 42,042 billion, flat over the quarter but decreasing 6% as compared to the same period in 2008. COP-denominated loans totaled COP 31,716 at the end of 4Q09, slightly decreasing over the quarter and the year (-1.1% QoQ and -0.7% YoY variations).
Loans denominated in U.S. dollars represented 25% of total loans, or USD 5,051 million, at the end of 4Q09, decreasing 3% and 11% as compared to 3Q09 and 4Q08 respectively. Loans volume performance is primarily explained by the significantly increased activity of corporations in debt capital markets and the low level of credit demand experienced during 2009.
| Dynamic bond issuance activity of local firms in the domestic and international debt markets was a key driver of loans volume performance in 2009. It is estimated that COP 13,694 billion were issued in Colombia in 2009, 2.4 times the amount issued in 2008. Non-financial firms issued COP 6,630 billion, which represents COP 5,309 billion in excess of the amount issued by them in 2008. Such strong issuance activity, explained to a large extent by a rebound in activity from historically low levels during the previous two years, caused higher than anticipated loan prepayment activity and lower general credit demand within the corporate segment. |
| In addition, tougher economic conditions also weighed on credit demand. Neither Colombia nor El Salvador were immune from the global economic downturn that took place in 2009: Colombia’s economy is expected to have grown close to zero growth in 2009, while El Salvador´s economy is expected to have contracted more than 2.5% during the year. As a result, credit demand remained subdued. Specifically, U.S. dollar-denominated lending activity was impacted by lower financing needs due to lower international trade flows affecting our clients’ businesses and also by a less dynamic economic environment in El Salvador where our loans are all dollar-denominated as the country’s economy is dollarized. |
| Corporate loans ended 2009 at COP 20,319 billion, or 48% of loans, decreasing 2% during 4Q09 and 9% as compared to 4Q08. Retail and SMEs loans totaled COP 12,783 billion, or 30% of total loans, of which COP 6,889 billion were consumer loans (16% of total loans). Retail and SMEs loans increased 1% in 4Q09, but decreased 5% as compared to 4Q08. In contrast, mortgage lending activity remained dynamic, driven mainly by the Colombian government’s housing subsidy program that was implemented in April 09 as well as by lower long-term interest rates in Colombia. Taking into account securitized loans, mortgages increased 4% over the quarter and 9% over the year (Bancolombia securitized mortgage loans for COP 154 billion in 4Q09 and a total of COP 833 billion during 2009 in the local market). |
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| 4Q09 |
Above all, during 2009 Bancolombia maintained a strong balance sheet through the adequate coverage of its loan portfolio. Reserves for loan losses totaled COP 2,432 billion or 5.8% of total loans. For further explanation regarding coverage of the loan portfolio and credit quality trends, please see Section 2.4 “Provision Charges, Asset Quality and Balance Sheet Strength” of this report.
The following table summarizes Bancolombia’s total loan portfolio:
| LOAN PORTFOLIO | As of | Growth | ||||||||||||||||||
| (COP millions) | 31-Dec-08 | 30-Sep-09 | 31-Dec-09 | Dec-09/Sep-09 | Dec-09/Dec-08 | |||||||||||||||
| CORPORATE | ||||||||||||||||||||
| Working capital loans | 19,332,292 | 18,554,910 | 18,500,267 | -0.29 | % | -4.30 | % | |||||||||||||
| Loans funded by | ||||||||||||||||||||
| domestic development banks | 1,022,764 | 681,931 | 527,937 | -22.58 | % | -48.38 | % | |||||||||||||
| Trade Financing | 1,768,964 | 1,332,765 | 1,205,175 | -9.57 | % | -31.87 | % | |||||||||||||
| Overdrafts | 63,508 | 104,263 | 50,602 | -51.47 | % | -20.32 | % | |||||||||||||
| Credit Cards | 42,366 | 37,538 | 35,452 | -5.56 | % | -16.32 | % | |||||||||||||
| TOTAL CORPORATE | 22,229,894 | 20,711,407 | 20,319,433 | -1.89 | % | -8.59 | % | |||||||||||||
| RETAIL AND SMEs | ||||||||||||||||||||
| Working capital loans | 4,138,373 | 4,203,293 | 4,306,083 | 2.45 | % | 4.05 | % | |||||||||||||
| Personal loans | 4,287,515 | 3,739,370 | 3,788,972 | 1.33 | % | -11.63 | % | |||||||||||||
| Loans funded by | ||||||||||||||||||||
| domestic development banks | 896,282 | 816,660 | 801,721 | -1.83 | % | -10.55 | % | |||||||||||||
| Credit Cards | 2,518,991 | 2,321,921 | 2,392,580 | 3.04 | % | -5.02 | % | |||||||||||||
| Overdrafts | 229,212 | 259,565 | 189,026 | -27.18 | % | -17.53 | % | |||||||||||||
| Automobile loans | 1,320,409 | 1,256,513 | 1,203,874 | -4.19 | % | -8.83 | % | |||||||||||||
| Trade Financing | 123,826 | 101,140 | 100,860 | -0.28 | % | -18.55 | % | |||||||||||||
| TOTAL RETAIL AND SMEs | 13,514,608 | 12,698,462 | 12,783,116 | 0.67 | % | -5.41 | % | |||||||||||||
| MORTGAGE | 3,391,326 | 3,279,715 | 3,469,424 | 5.78 | % | 2.30 | % | |||||||||||||
| FINANCIAL LEASES | 5,506,742 | 5,396,877 | 5,470,001 | 1.35 | % | -0.67 | % | |||||||||||||
| Total loans and financial leases | 44,642,570 | 42,086,461 | 42,041,974 | -0.11 | % | -5.83 | % | |||||||||||||
| Allowance for loan losses and financial leases | (2,134,360 | ) | (2,297,314 | ) | (2,431,667 | ) | 5.85 | % | 13.93 | % | ||||||||||
| Total loans and financial leases, net | 42,508,210 | 39,789,147 | 39,610,307 | -0.45 | % | -6.82 | % | |||||||||||||
| 1.3. | Investment Portfolio |
As of December 31, 2009, Bancolombia’s net investment securities totaled COP 8,915, increasing 10% and 22% as compared to 3Q09 and 4Q09 respectively. Net investment securities are primarily investments in debt securities (bonds), which represented 95% of Bancolombia’s net investment securities portfolio and 13.6% of total assets at the end of 4Q09, up from 11.1% of assets at the end of 4Q08.
| 1.4. | Funding |
As of December 31, 2009, Bancolombia’s liabilities totaled COP 54,832 billion, increasing 3% as compared to 3Q09, but decreasing 1% as compared to 4Q08. During 2009, the Bank maintained a solid liquidity position. The ratio of net loans to deposits (including borrowings from development banks) was 88% at the end of 4Q09, which compares favorably to the 96% ratio in 4Q08.
During 4Q09, deposits increased their participation in the funding mix, representing 77% of liabilities, up from the 75% and 73% they represented in 3Q09 and 4Q08 respectively. Deposits totaled COP 42,149 billion, increasing 4% during the quarter and also during the year. In line with the year end’s greater liquidity, demand deposits increased 11% during the quarter, reaching COP 23,818 billion, or 57% of deposits, while time deposits decreased their relative size in the funding mix to 43% from 47% in 3Q09.
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| 4Q09 |
| DEPOSITS MIX | ||||||||||||||||||||||||
| COP Billion | 4Q08 | % | 3Q09 | % | 4Q09 | % | ||||||||||||||||||
| Checking accounts | 7,301,050 | 18.1 | % | 7,044,059 | 17.5 | % | 8,224,948 | 19.5 | % | |||||||||||||||
| Time deposits | 18,652,738 | 46.2 | % | 18,802,887 | 46.6 | % | 18,331,488 | 43.5 | % | |||||||||||||||
| Savings deposits | 13,997,070 | 34.7 | % | 14,119,894 | 35.0 | % | 15,143,781 | 35.9 | % | |||||||||||||||
| Others | 433,542 | 1.1 | % | 380,021 | 0.9 | % | 449,113 | 1.1 | % | |||||||||||||||
| Total Deposits | 40,384,400 | 40,346,861 | 42,149,330 | |||||||||||||||||||||
| 1.5. | Shareholders’ equity and regulatory capital |
Shareholders’ equity amounted to COP 7,033 billion at the end of 4Q09, increasing 7% and 15% as compared to 3Q09 and 4Q08 respectively. The increase in shareholders’ equity was driven primarily by the Bank’s operating results.
Bancolombia’s capital ratio decreased to 13.2% at the end of 2009 from 13.8% at the end of 3Q09, although it ended the year considerably higher than the 11.2% presented at the end of 2008. The quarterly decrease is explained by regulatory adjustments that increased the impact of financial derivatives on risk weighted assets.
Bancolombia’s capital ratio was 423 basis points above the minimum required by Colombia´s regulator, while the basic capital ratio (tier 1) was 10.40% and the tangible capital ratio, which is equal to shareholder´s equity minus goodwill and intangible assets divided by tangible assets, was 9.85% at the end of 2009.
| TECHNICAL CAPITAL RISK WEIGHTED ASSETS | ||||||||||||||||||||||||
| Consolidated (COP millions) | Dec-08 | % | Sep-09 | % | Dec-09 | % | ||||||||||||||||||
| Basic capital (Tier I) | 4,971,755 | 8.95 | % | 5,765,332 | 10.92 | % | 5,726,318 | 10.40 | % | |||||||||||||||
| Additional capital (Tier II) | 1,273,869 | 2.29 | % | 1,523,844 | 2.88 | % | 1,559,978 | 2.83 | % | |||||||||||||||
Technical capital (1) | 6,245,624 | 7,289,176 | 7,286,296 | |||||||||||||||||||||
| Risk weighted assets included market risk | 55,542,485 | 52,802,821 | 55,084,655 | |||||||||||||||||||||
CAPITAL ADEQUACY (2) | 11.24 | % | 13.80 | % | 13.23 | % | ||||||||||||||||||
(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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| 4Q09 |
| 2. | INCOME STATEMENT |
Net income for 4Q09 totaled COP 371 billion or COP 471 per share-USD $0.92 per ADR. Net income for 4Q09 increased 16% as compared to 3Q09 and 26% as compared to 4Q08. Bancolombia’s annualized ROE for 4Q09 was 21.8% improving from 20.1% in 3Q09.
For the year 2009, net income totaled COP 1,257 billion (COP 1,595 per share-USD 3.12 per ADR), decreasing 3% as compared to 2008. Bancolombia’s ROE for 2009 was 19.6%.
| 2.1. | Net Interest Income |
Net interest income totaled COP 1,042 billion in 4Q09, increasing 23% as compared to 3Q09. For the year 2009, net interest income totaled COP 3,802 billion, increasing 7% as compared to 2008. Fourth quarter’s net interest income performance was driven by higher interest from investment securities and net interest margins.
Interest on investment securities
Interest on investment securities increased significantly in 4Q09 totaling COP 308 billion, increasing 139% and 166% as compared to 3Q09 and 4Q08 respectively. In 4Q09 interest on investment securities was driven by better performance of the debt securities portfolio driven by higher bond’s prices, and by the positive non-recurring effects produced by the reclassification of the Bank’s investment in the private capital fund Fondo Inmobiliario Colombia and the recording of residual income generated by the pools of securitized mortgages.
In 4Q09, the Bank reclassified its investment in the private capital fund Fondo Inmobiliario Colombia (“the fund”), a fund that purchases and manages investment in real estate assets, as part of the trading category. As a result, interest income from investment securities was positively impacted by income of COP 100 billion related to the greater market value of the fund’s units in 4Q09. In addition, in December 2009, and in accordance with adjustments required by accounting regulation, the Bank recorded the net present value (“NPV”) of residual income generated by the pools of securitized mortgages. Under the terms of the mortgage securitization transaction documents, Bancolombia is entitled to receive any residual income generated by the pool of mortgages after complete payment of the pool’s debt services and administrative charges. Therefore, the Bank proceeded to incorporate into the value of its mortgage backed securities, the net present value of the expected estimated residual income which takes into account performance assumptions based on historical statistical data. As a result, interest income from investment securities was positively impacted by income of COP 58 billion related to the greater value of the NPV residual calculation.
For the year 2009, interest on investment securities totaled COP 729 billion, or 11% of total interest income, increasing 69% as compared to 2008. After deducting non-recurring events, interest on investment securities increased 32% in 2009 as compared to 2008. This performance is primarily explained by a larger investment portfolio during 2009 (the Bank’s investment portfolio grew 22% in 2009). Positive mark-to-market valuation driven by the bond price rally that took place in 2009 also explains the good performance, though to a lesser extent. During 2009, Bancolombia did not significantly increase its risk appetite in bond markets and maintained its focus on pursuing diverse and stable earnings sources.
Net Interest Margin
Recurring annualized net interest margin, or that resulting after deducting non-recurring income on investment securities, reached 6.7% in 4Q09, increasing from the 6.3% in 3Q09, although considerably lower than the 7.5% presented in 4Q08. During 4Q09, net interest margin was boosted by lower funding cost which more than offset the pressure produced by additional interest rate cuts.
6
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| 4Q09 |
During 4Q09, total interest expense decreased 18% due to a lower funding cost and a more favorable funding mix. Funding cost decreased significantly during 4Q09 as a result of liability re-pricing efforts undertaken throughout the quarter and the changes in the funding mix composition. The annualized average weighted cost of deposits reached 3.36% in 4Q09, down from 4.15% in 3Q09 and 5.56% in 4Q08.
| Deposits' weighted | ||||||||||||
| average cost | 4Q08 | 3Q09 | 4Q09 | |||||||||
| Checking accounts | 0.73 | % | 0.59 | % | 0.49 | % | ||||||
| Time deposits | 7.76 | % | 6.31 | % | 5.33 | % | ||||||
| Savings accounts | 5.18 | % | 2.94 | % | 2.44 | % | ||||||
| Total deposits | 5.56 | % | 4.15 | % | 3.36 | % | ||||||
For the year 2009, recurring net interest margin was 6.7%, decreasing from 7.4% in 2008. This decrease is explained by the lower interest rate environment in Colombia. Throughout 2009, the Colombian Central Bank, in an effort to support economic activity, reduced its overnight lending rate by 650 basis points, an unprecedented and rapid move (most of which took place in the first half of 2009) that resulted in a repo rate of 3.5%. Consequently, interest rates across the economy followed a downward trend. In general, interest rates decreases impact Bancolombia’s interest on loans as a significant portion of the Bank’s loan portfolio has variable rates.
| 2.2. | Fees and Income from Services |
During 4Q09, net fees and income from services continued their positive performance totaling COP 391 billion, increasing 6% and 8% as compared to 3Q09 and 4Q08 respectively. In particular, credit and debit card annual fees, the biggest contributor to total fees, increased 5% QoQ and 18% YoY driven by the 5.3% growth in traditional credit card billing during the year.
On the other hand, collection and payment fees also performed well, increasing 5% QoQ and 20% YoY, while fees from fiduciary activities continued their solid performance, contributing COP 48 billion in fees during the quarter and increasing 14% QoQ and 60% YoY, driven by an increment in assets under management and in the number of trusts in general.
For the year 2009, net fees and income from services totaled COP 1,506 billion, increasing 15% as compared to the same period last year. This increase was driven primarily by the solid performance of credit and debit card annual fees, fiduciary activities, and collection and payments fees.
The following table summarizes Bancolombia’s participation in the credit card business in Colombia:
| ACCUMULATED CREDIT CARD BILLING | % | 2009 | ||||||||||||||
| (COP millions) | Dec-08 | Dec-09 | Growth | Market Share | ||||||||||||
| Bancolombia VISA | 1,738,186 | 1,753,163 | 0.86 | % | 8.09 | % | ||||||||||
| Bancolombia Mastercard | 2,232,799 | 2,314,469 | 3.66 | % | 10.68 | % | ||||||||||
| Bancolombia American Express | 1,532,476 | 1,730,273 | 12.91 | % | 7.98 | % | ||||||||||
| Total Bancolombia | 5,503,462 | 5,797,905 | 5.35 | % | 26.75 | % | ||||||||||
| Colombian Credit Card Market | 20,982,247 | 21,671,825 | 3.29 | % | ||||||||||||
| Source: Credibanco y Redeban multicolor | ||||||||||||||||
7
| |
| 4Q09 |
| CREDIT CARD MARKET SHARE | % | 2009 | ||||||||||||||
| (Outstanding credit cards) | Dec-08 | Dec-09 | Growth | Market Share | ||||||||||||
| Bancolombia VISA | 314,221 | 312,164 | -0.65 | % | 5.97 | % | ||||||||||
| Bancolombia Mastercard | 362,287 | 354,936 | -2.03 | % | 6.79 | % | ||||||||||
| Bancolombia American Express | 322,603 | 350,984 | 8.80 | % | 6.71 | % | ||||||||||
| Total Bancolombia | 999,111 | 1,018,084 | 1.90 | % | 19.47 | % | ||||||||||
| Colombian Credit Card Market | 5,328,110 | 5,228,295 | -1.87 | % | ||||||||||||
| Source: Credibanco y Redeban multicolor | ||||||||||||||||
| 2.3. | Other Operating Income |
Total other operating income amounted to COP 132 billion in 4Q09, increasing 29% as compared to 3Q09, although 30% lower than the figure for 4Q08. The year over year decrease is explained by non-recurring events reported in 4Q08, when the Bank recorded non-recurring gains on the sale of its interest in Multienlace S.A.. As part of this transaction, the Bank recorded gains on sales of investment securities for COP 56 billion in 4Q08.
Bancolombia usually hedges its currency exposure by establishing an opposite position in its derivative portfolio. Accordingly, exchange rate movements tend to have an opposite effect on the line item for derivative financial instruments compared to the effect produced on the line item of net foreign exchange gains. In 4Q09, the combined revenue of net foreign exchange gains and derivative financial instruments totaled COP 69 billion, increasing from the COP 21 billion in 3Q09.
Communication, postage, rent and others (primarily comprising income related to operating leases and commercial discounts) totaled COP 40 billion in 4Q09, decreasing 5% over the quarter, although increasing 17% as compared to 4Q08.
For the year 2009, total other operating income was COP 381 billion, substantially lower than the COP 650 billion reported in 2008. It is important to note that full-year 2009 other operating income incorporates non-recurring charges of COP 123 billion (charges incurred during the first half of 2009) related to the reduction in the carrying value of derivatives resulting from regulatory changes in the methodology used to value derivatives3. On the other hand, the sale of Bancolombia´s interest in Multienlace S.A. positively impacted the other operating income line item in 2008. As part of this transaction, the Bank recorded non-recurring gains on sales of investment securities for COP 92 billion in the fiscal year 2008.
| 2.4. | Asset Quality, provision charges and balance sheet strength |
For the third consecutive quarter the increase in the amount of past due loans (“PDLs”) before charge-offs declined, amounting to COP 116 billion in 4Q09, down from COP 192 billion for 3Q09, COP 238 billion for 2Q09 and 389 billion for 1Q09. On the other hand, net loans’ charge-offs totaled COP 229 billion in 4Q09, increasing from COP 189 billion in charge-offs for 3Q09. All in all, PDLs totaled COP 1,627 billion at the end of 4Q09, down from COP 1,740 billion in 3Q09. Consequently, the past due loan ratio, or loans overdue more than 30 days divided by gross loans, decreased to 3.9% in 4Q09 from 4.1% in 3Q09, although it was still higher than the 3.6% in 4Q08.
Despite signs of stability on delinquencies, loans classified as C, D and E, those categories of appreciable or higher risk, increased during the quarter and reached COP 2,149 billion or 5.1% of loans driven by a persistently weak employment environment and slow economic activity. Accordingly, credit cost remained elevated.
3 The Colombian Superintendency of Finance issued external circulars 025, 030, 044 and 063 (the “2008 External Circulars”) establishing new guidelines for the valuation of derivatives and structured products. In accordance with the 2008 External Circulars, BANCOLOMBIA adopted the methodology by which it values its portfolio of derivatives and structured products. As a result of this change, BANCOLOMBIA s balance sheet and financial results were impacted by a reduction in the carrying value of derivatives totaling COP. 145 billion in the 2008 fiscal year and COP 123 billion in 2009 fiscal year.
8
| |
| 4Q09 |
Provision charges (net of recoveries) for 4Q09 totaled COP 301 billion, increasing as compared to the COP 168 billion for 3Q09, but decreasing 37% as compared to COP 475 billion for 4Q08. On a relative basis, annualized provision charges for 4Q09 represented 2.9% of average loans, considerably lower than the 4.4% in 4Q08.
For the year 2009, provision charges (net of recoveries) totaled COP 1,153 billion increasing 2% as compared to the provision charges for 2008. On a relative basis, net provisions for 2009 represented 2.6% of average loans, decreasing from 2.8% in 2008. In addition, net loans’ charge-offs totaled COP 932 billion for the full-year 2009, increasing 70% from 548 COP billion in 2008.
Overall, Bancolombia maintains a strong balance sheet in terms of loan loss reserves. Allowances for loan losses totaled COP 2,432 billion, or 5.8% of total loans, increasing as compared to the 4.8% of total loans as of December 31, 2008, while coverage, measured by the ratio of allowances for loans losses to PDLs (overdue 30 days), reached 149% at the end of 4Q09, increasing significantly from 132% in 3Q09 and 131% in 4Q08. Likewise, coverage measured by the ratio of allowances for loans losses to loans classified as C, D and E was 113% at the end of 2009.
The following tables present key metrics for asset quality:
| ( COP millions) | As of | Growth | ||||||||||||||||||
| Dec-08 | Sep-09 | Dec-09 | 4Q 09 / 3Q 09 | 4Q 09 / 4Q 08 | ||||||||||||||||
Total performing past due loans (1) | 735,470 | 739,019 | 659,894 | -10.71 | % | -10.28 | % | |||||||||||||
| Total non-performing past due loans | 888,535 | 1,001,225 | 967,368 | -3.38 | % | 8.87 | % | |||||||||||||
| Total past due loans | 1,624,005 | 1,740,244 | 1,627,262 | -6.49 | % | 0.20 | % | |||||||||||||
| Allowance for loan losses | 2,134,360 | 2,297,314 | 2,431,667 | 5.85 | % | 13.93 | % | |||||||||||||
| Past due loans to total loans | 3.64 | % | 4.13 | % | 3.87 | % | ||||||||||||||
| Non-performing loans as a percentage of total loans | 1.99 | % | 2.38 | % | 2.30 | % | ||||||||||||||
| “C”, “D” and “E” loans as a percentage of total loans | 3.98 | % | 4.77 | % | 5.11 | % | ||||||||||||||
Allowances to past due loans (2) | 131.43 | % | 132.01 | % | 149.43 | % | ||||||||||||||
Allowance for loan losses as a percentage of “C”, “D” and “E” loans (2) | 120.20 | % | 114.48 | % | 113.12 | % | ||||||||||||||
Allowance for loan losses as a percentage of non-performing loans (2) | 240.21 | % | 229.45 | % | 251.37 | % | ||||||||||||||
| Allowance for loan losses as a percentage of total loans | 4.78 | % | 5.46 | % | 5.78 | % | ||||||||||||||
| Percentage of performing loans to total loans | 98.01 | % | 97.62 | % | 97.70 | % | ||||||||||||||
(1) “Performing” past due loans are loans upon which the Bank continues to recognize income although interest in respect of such loans has not been received. Mortgage loans cease to accumulate interest on the statement of operations when they are more than 60 days past due. For all other loans and financial leasing operations of any type, interest is no longer accumulated after they are more than 30 days past due.
(2) Under Colombian Bank regulations, a loan is past due when it is at least 31 days past the actual due date.
| PDLs Per Category | ||||||||||||||||
| % Of loan Portfolio | 4Q08 | 3Q09 | 4Q09 | |||||||||||||
| Commercial loans | 61.9 | % | 2.5 | % | 3.1 | % | 2.9 | % | ||||||||
| Consumer loans | 16.4 | % | 5.9 | % | 6.0 | % | 5.4 | % | ||||||||
| Microcredit | 0.5 | % | 12.3 | % | 8.7 | % | 8.5 | % | ||||||||
| Mortgage loans | 8.3 | % | 8.4 | % | 9.4 | % | 9.0 | % | ||||||||
| Finance leases | 13.0 | % | 3.0 | % | 3.9 | % | 3.3 | % | ||||||||
| TOTAL LOAN PORTFOLIO | 3.64 | % | 4.13 | % | 3.87 | % | ||||||||||
9
| |
| 4Q09 |
LOANS AND FINANCIAL LEASES CLASSIFICATION | ||||||||||||||||||||||||
( COP millions) | As of 31-Dec-08 | As of 30-Sep-09 | As of 31-Dec-09 | |||||||||||||||||||||
| ¨A¨ Normal | 40,650,096 | 91.0 | % | 38,740,999 | 92.0 | % | 38,180,626 | 90.8 | % | |||||||||||||||
| ¨B¨ Subnormal | 2,216,831 | 5.0 | % | 1,338,726 | 3.2 | % | 1,711,661 | 4.1 | % | |||||||||||||||
| ¨C¨ Deficient | 576,557 | 1.3 | % | 660,039 | 1.6 | % | 703,054 | 1.7 | % | |||||||||||||||
| ¨D¨ Doubtful recovery | 871,893 | 2.0 | % | 975,590 | 2.3 | % | 1,105,441 | 2.6 | % | |||||||||||||||
| ¨E¨ Unrecoverable | 327,193 | 0.7 | % | 371,107 | 0.9 | % | 341,192 | 0.8 | % | |||||||||||||||
| Total | 44,642,570 | 100 | % | 42,086,461 | 100 | % | 42,041,974 | 100 | % | |||||||||||||||
Loans and financial leases classified as C, D and E as a percentage of total loans and financial leases | 4.0 | % | 4.8 | % | 5.1 | % | ||||||||||||||||||
| 2.5. | Operating expenses |
During 4Q09, operating expenses totaled COP 732 billion, increasing 5% as compared to 3Q09, and presenting almost no variation as compared to 4Q08.
Personnel expenses (the sum of salaries and employee benefits, bonus plan payments and compensation) totaled COP 300 billion in 4Q09, increasing 8% as compared to 3Q09 and 3% as compared to 4Q08. Such performance was primarily driven by higher bonus plan payments related to Bancolombia’s variable compensation program in which compensation is determined taking into account the economic value added by the firm.
Administrative and other expenses increased 4% during 4Q09, totaling COP 368 billion. On a yearly basis, administrative and other expenses decreased 1% as compared to 4Q08.
For the year 2009, operating expenses totaled COP 2,826 billion, increasing 10% as compared to 2008. Personnel expenses (the sum of salaries and employee benefits, bonus plan payments and compensation) totaled COP 1,145 billion in 2009, increasing 6% as compared to 2008. This performance was primarily driven by the combined effect of larger headcount and wage increments during 2009, which off-set lower bonus plan payments and compensation in 2009 vs. 2008.
Administrative and other expenses totaled COP 1,418 billion in 2009, increasing 12% as compared to 2008 driven by increased fees paid in connection with software development and IT upgrades, greater collection efforts, greater costs associated to deposit insurance and larger assumed taxes and tariffs.
Depreciation expense totaled COP 185 billion in 2009, increasing 31% as compared to 2008. This increase was driven by the growth in the depreciation of assets that are part of the operating lease business of Bancolombia. In particular, COP 70 billion or 38% of the year’s depreciation expense is associated with operating lease assets.
10
| |
| 4Q09 |
| 3. | BANCOLOMBIA Company Description (NYSE: CIB) |
Bancolombia is a full service financial institution incorporated in Colombia that offers a wide range of banking products and services to a diversified individual and corporate customer base of more than 6.9 million customers. 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 banking subsidiaries in Panama, Cayman and Puerto Rico, as well as an agency in Miami. Together, Bancolombia and its subsidiaries provide stock brokerage, investment banking, leasing, factoring, consumer finance, fiduciary and trust services, asset management, pension fund administration, and insurance, among others.
Contact Information
Bancolombia’s Investor Relations
Phone: (574) 4041837 / (574) 4041838
E-mail: investorrelations@bancolombia.com.co
Juan E Toro V (IR Manager) /Catalina Botero S. (Analyst)
Website: http://www.grupobancolombia.com/relacioninversionistas/
11
| |
| 4Q09 |
| Last | ||||||||||||||||||||
| (COP millions) | Dec-08 | Sep-09 | Dec-09 | Quarter | Annual | |||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | 3,870,927 | 4,601,766 | 4,983,569 | 8.30 | % | 28.74 | % | |||||||||||||
| Overnight funds sold | 1,748,648 | 978,919 | 2,388,790 | 144.02 | % | 36.61 | % | |||||||||||||
| Total cash and equivalents | 5,619,575 | 5,580,685 | 7,372,359 | 32.10 | % | 31.19 | % | |||||||||||||
| Debt securities | 6,840,596 | 7,984,665 | 8,436,244 | 5.66 | % | 23.33 | % | |||||||||||||
| Trading | 2,385,564 | 2,655,122 | 3,037,819 | 14.41 | % | 27.34 | % | |||||||||||||
| Available for Sale | 2,000,588 | 2,171,216 | 2,175,494 | 0.20 | % | 8.74 | % | |||||||||||||
| Held to Maturity | 2,454,444 | 3,158,327 | 3,222,931 | 2.05 | % | 31.31 | % | |||||||||||||
| Equity securities | 503,861 | 221,811 | 580,214 | 161.58 | % | 15.15 | % | |||||||||||||
| Trading | 331,398 | 40,055 | 330,840 | 725.96 | % | -0.17 | % | |||||||||||||
| Available for Sale | 172,463 | 181,756 | 249,374 | 37.20 | % | 44.60 | % | |||||||||||||
| Market value allowance | -66,181 | -80,953 | -101,545 | 25.44 | % | 53.44 | % | |||||||||||||
| Net investment securities | 7,278,276 | 8,125,523 | 8,914,913 | 9.71 | % | 22.49 | % | |||||||||||||
| Commercial loans | 28,068,731 | 26,412,840 | 26,011,915 | -1.52 | % | -7.33 | % | |||||||||||||
| Consumer loans | 7,532,649 | 6,821,966 | 6,888,615 | 0.98 | % | -8.55 | % | |||||||||||||
| Microcredit | 143,122 | 175,063 | 202,019 | 15.40 | % | 41.15 | % | |||||||||||||
| Mortgage loans | 3,391,326 | 3,279,715 | 3,469,424 | 5.78 | % | 2.30 | % | |||||||||||||
| Finance lease | 5,506,742 | 5,396,877 | 5,470,001 | 1.35 | % | -0.67 | % | |||||||||||||
| Allowance for loan losses | -2,134,360 | -2,297,314 | -2,431,667 | 5.85 | % | 13.93 | % | |||||||||||||
| Net total loans and financial leases | 42,508,210 | 39,789,147 | 39,610,307 | -0.45 | % | -6.82 | % | |||||||||||||
| Accrued interest receivable on loans | 559,981 | 462,082 | 384,542 | -16.78 | % | -31.33 | % | |||||||||||||
| Allowance for accrued interest losses | -54,323 | -51,041 | -45,937 | -10.00 | % | -15.44 | % | |||||||||||||
| Net total interest accrued | 505,658 | 411,041 | 338,605 | -17.62 | % | -33.04 | % | |||||||||||||
| Customers' acceptances and derivatives | 272,458 | 227,406 | 205,367 | -9.69 | % | -24.62 | % | |||||||||||||
| Net accounts receivable | 828,817 | 701,113 | 806,885 | 15.09 | % | -2.65 | % | |||||||||||||
| Net premises and equipment | 1,171,117 | 1,254,126 | 992,041 | -20.90 | % | -15.29 | % | |||||||||||||
| Foreclosed assets, net | 24,653 | 50,821 | 80,668 | 58.73 | % | 227.21 | % | |||||||||||||
| Prepaid expenses and deferred charges | 132,881 | 170,478 | 185,811 | 8.99 | % | 39.83 | % | |||||||||||||
| Goodwill | 1,008,639 | 819,624 | 855,724 | 4.40 | % | -15.16 | % | |||||||||||||
| Operating leases, net | 726,262 | 818,010 | 843,054 | 3.06 | % | 16.08 | % | |||||||||||||
| Other | 1,093,850 | 1,357,638 | 922,265 | -32.07 | % | -15.69 | % | |||||||||||||
| Reappraisal of assets | 612,683 | 781,832 | 736,366 | -5.82 | % | 20.19 | % | |||||||||||||
| Total assets | 61,783,079 | 60,087,444 | 61,864,365 | 2.96 | % | 0.13 | % | |||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
| LIABILITIES | ||||||||||||||||||||
| DEPOSITS | ||||||||||||||||||||
| Non-interest bearing | 5,723,460 | 4,844,472 | 6,307,780 | 30.21 | % | 10.21 | % | |||||||||||||
| Checking accounts | 5,289,918 | 4,464,451 | 5,858,667 | 31.23 | % | 10.75 | % | |||||||||||||
| Other | 433,542 | 380,021 | 449,113 | 18.18 | % | 3.59 | % | |||||||||||||
| Interest bearing | 34,660,940 | 35,502,389 | 35,841,550 | 0.96 | % | 3.41 | % | |||||||||||||
| Checking accounts | 2,011,132 | 2,579,608 | 2,366,281 | -8.27 | % | 17.66 | % | |||||||||||||
| Time deposits | 18,652,738 | 18,802,887 | 18,331,488 | -2.51 | % | -1.72 | % | |||||||||||||
| Savings deposits | 13,997,070 | 14,119,894 | 15,143,781 | 7.25 | % | 8.19 | % | |||||||||||||
| Total deposits | 40,384,400 | 40,346,861 | 42,149,330 | 4.47 | % | 4.37 | % | |||||||||||||
| Overnight funds | 2,564,208 | 1,094,900 | 1,342,201 | 22.59 | % | -47.66 | % | |||||||||||||
| Bank acceptances outstanding | 56,935 | 28,393 | 47,609 | 67.68 | % | -16.38 | % | |||||||||||||
| Interbank borrowings | 2,077,291 | 791,410 | 1,152,918 | 45.68 | % | -44.50 | % | |||||||||||||
| Borrowings from domestic development banks | 3,870,634 | 3,099,527 | 2,886,232 | -6.88 | % | -25.43 | % | |||||||||||||
| Accounts payable | 1,688,402 | 1,850,319 | 1,656,154 | -10.49 | % | -1.91 | % | |||||||||||||
| Accrued interest payable | 400,902 | 488,626 | 411,796 | -15.72 | % | 2.72 | % | |||||||||||||
| Other liabilities | 589,501 | 495,942 | 665,893 | 34.27 | % | 12.96 | % | |||||||||||||
| Bonds | 3,643,486 | 4,208,832 | 4,173,622 | -0.84 | % | 14.55 | % | |||||||||||||
| Accrued expenses | 255,183 | 764,771 | 239,400 | -68.70 | % | -6.18 | % | |||||||||||||
| Minority interest in consolidated subsidiaries | 135,292 | 323,159 | 106,381 | -67.08 | % | -21.37 | % | |||||||||||||
| Total liabilities | 55,666,234 | 53,492,740 | 54,831,536 | 2.50 | % | -1.50 | % | |||||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||||||||||
| Subscribed and paid in capital | 393,914 | 393,914 | 393,914 | 0.00 | % | 0.00 | % | |||||||||||||
| Retained earnings | 4,911,107 | 5,244,860 | 5,601,028 | 6.79 | % | 14.05 | % | |||||||||||||
| Appropiated | 3,620,464 | 4,359,414 | 4,344,178 | -0.35 | % | 19.99 | % | |||||||||||||
| Unappropiated | 1,290,643 | 885,446 | 1,256,850 | 41.95 | % | -2.62 | % | |||||||||||||
| Reappraisal and others | 860,784 | 918,356 | 1,004,293 | 9.36 | % | 16.67 | % | |||||||||||||
| Gross unrealized gain or loss on debt securities | -48,960 | 37,574 | 33,594 | -10.59 | % | 168.62 | % | |||||||||||||
| Total shareholder's equity | 6,116,845 | 6,594,704 | 7,032,829 | 6.64 | % | 14.97 | % | |||||||||||||
12
| |
| 4Q09 |
| INCOME STATEMENT | As of | Growth | Growth | |||||||||||||||||||||||||||||
| (COP millions) | Dec-08 | Dec-09 | Dec-08/Dec-09 | 4Q 08 | 3Q 09 | 4Q 09 | 4Q 09/3Q 09 | 4Q 09/4Q 08 | ||||||||||||||||||||||||
| Interest income and expenses | ||||||||||||||||||||||||||||||||
| Interest on loans | 4,999,520 | 4,901,366 | -1.96 | % | 1,426,604 | 1,140,070 | 1,061,033 | -6.93 | % | -25.63 | % | |||||||||||||||||||||
| Interest on investment securities | 431,589 | 728,558 | 68.81 | % | 115,929 | 128,875 | 307,931 | 138.94 | % | 165.62 | % | |||||||||||||||||||||
| Overnight funds | 106,208 | 74,869 | -29.51 | % | 31,226 | 15,794 | 13,498 | -14.54 | % | -56.77 | % | |||||||||||||||||||||
| Leasing | 776,426 | 722,905 | -6.89 | % | 211,096 | 165,031 | 151,859 | -7.98 | % | -28.06 | % | |||||||||||||||||||||
| Total interest income | 6,313,743 | 6,427,698 | 1.80 | % | 1,784,855 | 1,449,770 | 1,534,321 | 5.83 | % | -14.04 | % | |||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||||||||
| Checking accounts | 39,257 | 43,211 | 10.07 | % | 12,089 | 10,242 | 9,316 | -9.04 | % | -22.94 | % | |||||||||||||||||||||
| Time deposits | 1,256,742 | 1,376,567 | 9.53 | % | 349,967 | 317,873 | 247,352 | -22.19 | % | -29.32 | % | |||||||||||||||||||||
| Savings deposits | 589,718 | 450,865 | -23.55 | % | 176,389 | 103,790 | 89,315 | -13.95 | % | -49.36 | % | |||||||||||||||||||||
| Total interest on deposits | 1,885,717 | 1,870,643 | -0.80 | % | 538,445 | 431,905 | 345,983 | -19.89 | % | -35.74 | % | |||||||||||||||||||||
| Interbank borrowings | 74,792 | 47,650 | -36.29 | % | 25,330 | 6,561 | 5,469 | -16.64 | % | -78.41 | % | |||||||||||||||||||||
| Borrowings from domestic development banks | 344,900 | 252,842 | -26.69 | % | 92,662 | 53,923 | 44,800 | -16.92 | % | -51.65 | % | |||||||||||||||||||||
| Overnight funds | 166,129 | 94,099 | -43.36 | % | 51,698 | 16,642 | 9,844 | -40.85 | % | -80.96 | % | |||||||||||||||||||||
| Bonds | 281,803 | 360,182 | 27.81 | % | 91,660 | 91,564 | 86,723 | -5.29 | % | -5.39 | % | |||||||||||||||||||||
| Total interest expense | 2,753,341 | 2,625,416 | -4.65 | % | 799,795 | 600,595 | 492,819 | -17.94 | % | -38.38 | % | |||||||||||||||||||||
| Net interest income | 3,560,402 | 3,802,282 | 6.79 | % | 985,060 | 849,175 | 1,041,502 | 22.65 | % | 5.73 | % | |||||||||||||||||||||
| Provision for loan and accrued interest losses, net | (1,263,405 | ) | (1,317,846 | ) | 4.31 | % | (520,072 | ) | (190,865 | ) | (358,770 | ) | 87.97 | % | -31.02 | % | ||||||||||||||||
| Recovery of charged-off loans | 108,143 | 214,251 | 98.12 | % | 40,035 | 53,646 | 78,886 | 47.05 | % | 97.04 | % | |||||||||||||||||||||
| Provision for foreclosed assets and other assets | (46,297 | ) | (98,437 | ) | 112.62 | % | (13,909 | ) | (32,366 | ) | (27,007 | ) | -16.56 | % | 94.17 | % | ||||||||||||||||
| Recovery of provisions for foreclosed assets and other assets | 68,392 | 48,658 | -28.85 | % | 19,282 | 1,818 | 6,154 | 238.50 | % | -68.08 | % | |||||||||||||||||||||
| Total net provisions | (1,133,167 | ) | (1,153,374 | ) | 1.78 | % | (474,664 | ) | (167,767 | ) | (300,737 | ) | 79.26 | % | -36.64 | % | ||||||||||||||||
| Net interest income after provision for loans | ||||||||||||||||||||||||||||||||
| and accrued interest losses | 2,427,235 | 2,648,908 | 9.13 | % | 510,396 | 681,408 | 740,765 | 8.71 | % | 45.14 | % | |||||||||||||||||||||
| Commissions from banking services and other services | 238,918 | 258,180 | 8.06 | % | 60,733 | 58,912 | 68,573 | 16.40 | % | 12.91 | % | |||||||||||||||||||||
| Electronic services and ATM fees | 86,070 | 58,944 | -31.52 | % | 22,820 | 13,744 | 14,776 | 7.51 | % | -35.25 | % | |||||||||||||||||||||
| Branch network services | 104,010 | 110,837 | 6.56 | % | 28,297 | 27,698 | 29,743 | 7.38 | % | 5.11 | % | |||||||||||||||||||||
| Collections and payments fees | 157,281 | 187,348 | 19.12 | % | 41,901 | 48,075 | 50,460 | 4.96 | % | 20.43 | % | |||||||||||||||||||||
| Credit card merchant fees | 32,215 | 28,200 | -12.46 | % | 11,910 | 7,259 | 7,134 | -1.72 | % | -40.10 | % | |||||||||||||||||||||
| Credit and debit card annual fees | 446,647 | 548,820 | 22.88 | % | 118,825 | 134,156 | 140,206 | 4.51 | % | 17.99 | % | |||||||||||||||||||||
| Checking fees | 67,963 | 69,544 | 2.33 | % | 17,104 | 17,816 | 17,293 | -2.94 | % | 1.11 | % | |||||||||||||||||||||
| Fiduciary activities | 98,799 | 172,259 | 74.35 | % | 30,196 | 42,426 | 48,200 | 13.61 | % | 59.62 | % | |||||||||||||||||||||
| Pension plan administration | 87,826 | 96,678 | 10.08 | % | 27,068 | 20,690 | 24,489 | 18.36 | % | -9.53 | % | |||||||||||||||||||||
| Brokerage fees | 54,742 | 45,966 | -16.03 | % | 12,149 | 12,061 | 15,593 | 29.28 | % | 28.35 | % | |||||||||||||||||||||
| Check remittance | 26,148 | 25,812 | -1.28 | % | 7,203 | 6,581 | 6,333 | -3.77 | % | -12.08 | % | |||||||||||||||||||||
| International operations | 47,962 | 46,836 | -2.35 | % | 15,512 | 16,263 | 3,633 | -77.66 | % | -76.58 | % | |||||||||||||||||||||
| Fees and other service income | 1,448,581 | 1,649,424 | 13.86 | % | 393,718 | 405,681 | 426,433 | 5.12 | % | 8.31 | % | |||||||||||||||||||||
| Fees and other service expenses | (134,939 | ) | (143,151 | ) | 6.09 | % | (32,718 | ) | (37,081 | ) | (35,526 | ) | -4.19 | % | 8.58 | % | ||||||||||||||||
| Total fees and income from services, net | 1,313,642 | 1,506,273 | 14.66 | % | 361,000 | 368,600 | 390,907 | 6.05 | % | 8.28 | % | |||||||||||||||||||||
| Other operating income | ||||||||||||||||||||||||||||||||
| Net foreign exchange gains | 113,584 | (216,411 | ) | -290.53 | % | 80,184 | (150,887 | ) | 51,124 | 133.88 | % | -36.24 | % | |||||||||||||||||||
| Derivative financial instruments | 142,431 | 265,969 | 86.74 | % | (21,708 | ) | 172,270 | 17,971 | -89.57 | % | 182.79 | % | ||||||||||||||||||||
| Gains(loss) on sales of investments on equity securities | 92,125 | 584 | -99.37 | % | 55,630 | 71 | (25 | ) | -135.21 | % | -100.04 | % | ||||||||||||||||||||
| Securitization income | 41,080 | 53,784 | 30.93 | % | 9,523 | 14,281 | 12,341 | -13.58 | % | 29.59 | % | |||||||||||||||||||||
| Dividend income | 39,586 | 24,045 | -39.26 | % | 89 | 3,184 | 89 | -97.20 | % | 0.00 | % | |||||||||||||||||||||
| Revenues from commercial subsidiaries | 101,730 | 96,605 | -5.04 | % | 25,293 | 23,762 | 20,968 | -11.76 | % | -17.10 | % | |||||||||||||||||||||
| Insurance income | 13,948 | 12 | -99.91 | % | 6,449 | (2,060 | ) | (10,106 | ) | 390.58 | % | -256.71 | % | |||||||||||||||||||
| Communication, postage, rent and others | 105,958 | 156,088 | 47.31 | % | 33,856 | 41,731 | 39,565 | -5.19 | % | 16.86 | % | |||||||||||||||||||||
| Total other operating income | 650,442 | 380,676 | -41.47 | % | 189,316 | 102,352 | 131,927 | 28.90 | % | -30.31 | % | |||||||||||||||||||||
| Total income | 4,391,319 | 4,535,857 | 3.29 | % | 1,060,712 | 1,152,360 | 1,263,599 | 9.65 | % | 19.13 | % | |||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 928,997 | 1,034,942 | 11.40 | % | 269,478 | 258,027 | 257,271 | -0.29 | % | -4.53 | % | |||||||||||||||||||||
| Bonus plan payments | 125,393 | 90,341 | -27.95 | % | 17,680 | 15,065 | 37,340 | 147.86 | % | 111.20 | % | |||||||||||||||||||||
| Compensation | 23,539 | 19,725 | -16.20 | % | 4,558 | 3,988 | 5,513 | 38.24 | % | 20.95 | % | |||||||||||||||||||||
| Administrative and other expenses | 1,268,982 | 1,418,145 | 11.75 | % | 368,806 | 351,871 | 366,411 | 4.13 | % | -0.65 | % | |||||||||||||||||||||
| Deposit security, net | 52,151 | 74,228 | 42.33 | % | 12,557 | 18,743 | 16,846 | -10.12 | % | 34.16 | % | |||||||||||||||||||||
| Donation expenses | 26,653 | 3,506 | -86.85 | % | 21,840 | 711 | 1,402 | 97.19 | % | -93.58 | % | |||||||||||||||||||||
| Depreciation | 141,133 | 185,027 | 31.10 | % | 40,365 | 47,747 | 47,006 | -1.55 | % | 16.45 | % | |||||||||||||||||||||
| Total operating expenses | 2,566,848 | 2,825,914 | 10.09 | % | 735,284 | 696,152 | 731,789 | 5.12 | % | -0.48 | % | |||||||||||||||||||||
| Net operating income | 1,824,471 | 1,709,943 | -6.28 | % | 325,428 | 456,208 | 531,810 | 16.57 | % | 63.42 | % | |||||||||||||||||||||
Goodwill amortization (1) | 73,149 | 69,231 | -5.36 | % | 34,804 | 15,614 | 15,320 | -1.88 | % | -55.98 | % | |||||||||||||||||||||
| Non-operating income (expense) | ||||||||||||||||||||||||||||||||
| Other income | 172,550 | 198,761 | 15.19 | % | 78,498 | 62,663 | 16,924 | -72.99 | % | -78.44 | % | |||||||||||||||||||||
| Minority interest | (18,511 | ) | (15,081 | ) | -18.53 | % | (5,361 | ) | (8,632 | ) | 4,294 | 149.75 | % | 180.10 | % | |||||||||||||||||
| Other expense | (140,662 | ) | (105,529 | ) | -24.98 | % | (21,985 | ) | (33,753 | ) | (15,446 | ) | -54.24 | % | -29.74 | % | ||||||||||||||||
| Total non-operating income | 13,377 | 78,151 | 484.22 | % | 51,152 | 20,278 | 5,772 | -71.54 | % | -88.72 | % | |||||||||||||||||||||
| Income before income taxes | 1,764,699 | 1,718,863 | -2.60 | % | 341,776 | 460,872 | 522,262 | 13.32 | % | 52.81 | % | |||||||||||||||||||||
| Income tax expense | (474,056 | ) | (462,013 | ) | -2.54 | % | (47,323 | ) | (139,674 | ) | (150,858 | ) | 8.01 | % | 218.78 | % | ||||||||||||||||
| Net income | 1,290,643 | 1,256,850 | -2.62 | % | 294,453 | 321,198 | 371,404 | 15.63 | % | 26.13 | % | |||||||||||||||||||||
13
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: March 1, 2010 | By: | /s/ JAIME ALBERTO VELÁSQUEZ B. | ||
| Name: | Jaime Alberto Velásquez B. | |||
| Title: | Vice President of Finance | |||