UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of March, 2008.
Comission File Number 001-32535
Bancolombia S.A.
(Translation of registrant’s name into English)
Calle 50 No. 51-66
Medellín, Colombia
(Address of principal executive offices)
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):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)(2):o
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- .
CONSOLIDATED FINANCIAL RESULTS
FOR THE QUARTER ENDED DECEMBER 31, 2007
FOR THE QUARTER ENDED DECEMBER 31, 2007
March 10, 2008.Medellín, Colombia — Today, BANCOLOMBIA S.A. (“BANCOLOMBIA” or the “Bank”) (NYSE: CIB) announced its financial results for the fourth quarter of fiscal year 2007, ended December 31, 2007.1
CONSOLIDATED BALANCE SHEET | Quarter | Growth | ||||||||||||||||||
AND INCOME STATEMENT | Pro forma | |||||||||||||||||||
(Ps millions) | 4Q 06 | 3Q 07 | 4Q 07 | 4Q 07 / 3Q 07 | 4Q 07 / 4Q 06 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Loans and financial leases, net | 29,207,818 | 34,188,333 | 36,245,473 | 6.02 | % | 24.10 | % | |||||||||||||
Investment securities, net | 7,157,767 | 5,331,636 | 5,774,251 | 8.30 | % | -19.33 | % | |||||||||||||
Other assets | 6,896,391 | 9,163,991 | 10,131,925 | 10.56 | % | 46.92 | % | |||||||||||||
Total assets | 43,261,976 | 48,683,960 | 52,151,649 | 7.12 | % | 20.55 | % | |||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Deposits | 28,526,183 | 30,641,803 | 34,374,150 | 12.18 | % | 20.50 | % | |||||||||||||
Non-interest bearing | 5,259,098 | 4,647,520 | 5,804,724 | 24.90 | % | 10.37 | % | |||||||||||||
Interest bearing | 23,267,085 | 25,994,283 | 28,569,426 | 9.91 | % | 22.79 | % | |||||||||||||
Other liabilities | 10,421,112 | 13,274,738 | 12,578,229 | -5.25 | % | 20.70 | % | |||||||||||||
Total liabilities | 38,947,295 | 43,916,541 | 46,952,379 | 6.91 | % | 20.55 | % | |||||||||||||
Shareholders’ equity | 4,314,681 | 4,767,419 | 5,199,270 | 9.06 | % | 20.50 | % | |||||||||||||
Total liabilities and shareholders’ equity | 43,261,976 | 48,683,960 | 52,151,649 | 7.12 | % | 20.55 | % | |||||||||||||
Interest income | 1,052,012 | 1,242,684 | 1,375,701 | 10.70 | % | 30.77 | % | |||||||||||||
Interest expense | 403,065 | 526,607 | 588,349 | 11.72 | % | 45.97 | % | |||||||||||||
Net interest income | 648,947 | 716,077 | 787,352 | 9.95 | % | 21.33 | % | |||||||||||||
Net provisions | (20,724 | ) | (192,709 | ) | (210,719 | ) | 9.35 | % | 916.79 | % | ||||||||||
Fees and income from service, net | 290,987 | 283,549 | 348,778 | 23.00 | % | 19.86 | % | |||||||||||||
Other operating income | 74,090 | 95,682 | 132,207 | 38.17 | % | 78.44 | % | |||||||||||||
Operating expense | (640,894 | ) | (550,826 | ) | (601,721 | ) | 9.24 | % | -6.11 | % | ||||||||||
Non-operating income, net | (4,147 | ) | 13,967 | 3,821 | -72.64 | % | 192.14 | % | ||||||||||||
Income tax expense | (49,432 | ) | (49,007 | ) | (137,222 | ) | 180.00 | % | 177.60 | % | ||||||||||
Net income | 298,827 | 316,733 | 322,496 | 1.82 | % | 7.92 | % | |||||||||||||
1 This report corresponds to the consolidated financial statements of 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 Superintendency of Finance in Colombia, collectively COL GAAP. BANCOLOMBIA maintains accounting records in Colombian pesos, referred to herein as “Ps.” There have been no changes to the Bank’s principal accounting policies in the 4Q2007. The statements of income for the 4Q2007 are not necessarily indicative of the results for any other future interim period. For more information, please refer to the Company’s filings with the Securities and Exchange Commission, which are available on the Commission’s website atwww.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.
The unaudited pro forma combined condensed financial statements are provided for illustrative purposes only and do not purport to represent what the actual consolidated results of operations or the consolidated financial position of BANCOLOMBIA would have been, nor are they necessarily indicative of future consolidated results of operations or consolidated financial position. The unaudited pro forma combined condensed financial statements do not include the realization of cost savings from operating efficiencies, revenue synergies or other restructuring costs currently expected to result from the acquisition of Banagrícola S.A. (“BANAGRICOLA”). No assurance can be given that any such savings or other expected benefits of the acquisition will in fact take place, whether at the level of management’s current expectations or at all.
Any reference to BANCOLOMBIA must be understood as referring to the Bank together with its affiliates, unless otherwise specified.
Representative Market Rate: December 31, 2007 Ps. 2,014.76 = US$ 1
Average Representative Market Rate December 2007 Ps. 2,078.35 = US$ 1
Average Representative Market Rate December 2007 Ps. 2,078.35 = US$ 1
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1. HIGHLIGHTS:
• | For the fourth quarter of 2007 net income amounted to Ps. 322.5 billion. Net income for the year ended December 31, 2007 totaled Ps. 1,086.9 billion, increasing 31.0% as compared to the pro forma2 Ps. 829.5 billion for the year ended December 31, 2006. |
• | As of December 31, 2007, BANCOLOMBIA net loans totaled Ps. 36,245 billion, increasing 6.0% as compared to the Ps. 34,188 billion in the previous quarter. On a year-to-year basis, this represents an increase of 24.1% as compared to the pro forma Ps. 29,208 billion as of December 31, 2006. |
• | Return on average equity (ROAE) was 24.41% for the year 2007. |
• | For the year ended December 31, 2007, net interest income amounted to Ps. 2,808.3 billion, increasing 32.9% as compared to the pro forma figures for the year ended December 31, 2006. |
• | Net fees and income from services for the quarter ended December 31, 2007, totaled Ps. 348.8 billion, which represents an increase of 19.9% as compared to the pro forma figures for the last quarter of 2006. |
• | Total operating expenses for the year ended December 31, 2007 amounted to Ps. 2,201.3 billion, increasing 6.1% as compared to the 2,074.6 billion pro forma figures for the year ended December 31, 2006. Efficiency, measured as the ratio between operating expenses and net operating income, reached 53.0% for the year ended December 31, 2007. |
• | Provisions for loan and accrued interest losses for the year ended December 31, 2007 amounted to Ps. 708 billion increasing 117.9% when compared to the same period of 2006. |
• | BANCOLOMBIA’s ratio of past due loans to total loans as of December 31, 2007 was 2.9%, and the ratio of allowances to past due loans was 134.9%. |
KEY FINANCIAL HIGHLIGHTS | Quarter | As of | ||||||||||||||||||
Pro forma | Pro forma | |||||||||||||||||||
4Q 06 | 3Q 07 | 4Q 07 | Dec-06 | Dec-07 | ||||||||||||||||
Net Income (Ps millions) | 298,827 | 316,733 | 322,496 | 829,488 | 1,086,923 | |||||||||||||||
Basic and Diluted net income per ADS | 0.678 | 0.795 | 0.813 | 1.881 | 2.739 | |||||||||||||||
Return on average total assets(1) | 2.80 | % | 2.70 | % | 2.57 | % | 1.92 | % | 2.30 | % | ||||||||||
Return on average shareholders’ equity(2) | 29.26 | % | 28.81 | % | 25.99 | % | 19.22 | % | 24.41 | % | ||||||||||
P/BV ADS(3) | 3.18 | 2.90 | 2.61 | |||||||||||||||||
P/BV Local(4) (5) | 3.17 | 2.71 | 2.56 | |||||||||||||||||
P/E(6) | 11.47 | 10.45 | 10.39 | |||||||||||||||||
ADR price | 31.13 | 34.65 | 34.20 | |||||||||||||||||
Weighted average of Preferred and Common Shares outstanding | 787,827,003 | 787,827,003 | 787,827,003 |
(1) | Defined as annualized quarterly net income divided by monthly average assets. | |
(2) | Defined as annualized quarterly net income divided by monthly average equity. | |
(3) | Defined as ADS price divided by ADS book value. | |
(4) | Defined as share price divided by share book value. | |
(5) | Share prices on the Colombian Stock Exchange. | |
(6) | Defined as market capitalization divided by annualized quarter results. |
2 This report contains pro forma figures for the fourth quarter of 2006 as if the acquisition of Banagricola had taken place on June 30, 2006. All references to numbers for periods prior to third quarter of 2007 were derived from such pro forma consolidated financial statements and are used herein for the purpose of comparison. Some assumptions were needed in order to complete the pro forma figures, the purchase transaction was simulated applying the same multiples, used on the acquisition, to the numbers that BANAGRICOLA had at that time and an issuance of subordinated bonds and preferred shares were simulated keeping a similar participation on the bank’s funding as they did in June 30 2007.
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2. CONSOLIDATED BALANCE SHEET
2.1. | Assets |
BANCOLOMBIA’s total assets amounted to Ps. 52,152 billion as of December 31, 2007, an increase of 7.1% as compared to Ps. 48,684 billion as of September 30, 2007 and of 20.5% as compared to the pro forma Ps. 43,262 billion as of December 31, 2006.
2.1.1. | Loan Portfolio |
Net loans and financial leases represented 69.5% of assets as of December 31, 2007, amounting to Ps. 36,245 billion, a 6.0% increase as compared to the previous quarter and 24.1% as compared to the pro forma figures for the fourth quarter of 2006.
LOAN PORTFOLIO | As of | Growth | ||||||||||||||||||
(Ps millions) | 31-Dec-06 | 30-Sep-07 | 31-Dec-07 | Dec-07/Sep-07 | Dec-07/Dec-06 | |||||||||||||||
Pro forma | ||||||||||||||||||||
CORPORATE | ||||||||||||||||||||
Working capital loans | 14,163,885 | 15,719,266 | 16,099,499 | 2.42 | % | 13.67 | % | |||||||||||||
Loans funded by domestic development banks | 419,841 | 852,098 | 882,715 | 3.59 | % | 110.25 | % | |||||||||||||
Trade Financing | 1,045,662 | 1,002,428 | 1,159,546 | 15.67 | % | 10.89 | % | |||||||||||||
Overdrafts | 83,028 | 140,692 | 59,146 | -57.96 | % | -28.76 | % | |||||||||||||
Credit Cards | 55,260 | 156,576 | 43,159 | -72.44 | % | -21.90 | % | |||||||||||||
TOTAL CORPORATE | 15,767,676 | 17,871,060 | 18,244,065 | 2.09 | % | 15.71 | % | |||||||||||||
RETAIL AND SMEs | ||||||||||||||||||||
Working capital loans | 2,348,732 | 2,874,562 | 3,729,344 | 29.74 | % | 58.78 | % | |||||||||||||
Personal loans | 3,560,140 | 3,554,436 | 3,778,558 | 6.31 | % | 6.14 | % | |||||||||||||
Loans funded by domestic development banks | 386,537 | 553,915 | 719,211 | 29.84 | % | 86.07 | % | |||||||||||||
Credit Cards | 951,954 | 1,701,169 | 2,020,611 | 18.78 | % | 112.26 | % | |||||||||||||
Overdrafts | 140,945 | 234,653 | 218,006 | -7.09 | % | 54.67 | % | |||||||||||||
Automobile loans | 971,078 | 1,214,440 | 1,312,396 | 8.07 | % | 35.15 | % | |||||||||||||
Trade Financing | 75,537 | 90,820 | 97,978 | 7.88 | % | 29.71 | % | |||||||||||||
TOTAL RETAIL AND SMEs | 8,434,923 | 10,223,995 | 11,876,104 | 16.16 | % | 40.80 | % | |||||||||||||
MORTGAGE | 2,449,679 | 3,017,151 | 2,883,628 | -4.43 | % | 17.71 | % | |||||||||||||
FINANCIAL LEASES | 3,554,616 | 4,332,769 | 4,698,827 | 8.45 | % | 32.19 | % | |||||||||||||
Total loans and financial leases | 30,206,894 | 35,444,975 | 37,702,624 | 6.37 | % | 24.81 | % | |||||||||||||
Allowance for loan losses and financial leases | (999,076 | ) | (1,256,642 | ) | (1,457,151 | ) | 15.96 | % | 45.85 | % | ||||||||||
Total loans and financial leases, net | 29,207,818 | 34,188,333 | 36,245,473 | 6.02 | % | 24.10 | % | |||||||||||||
Corporate loans amounted to Ps. 18,244 billion as of December 31, 2007, increasing 2.1% as compared to the previous quarter. This represents an increase of 15.7% as compared to pro forma Ps. 15,768 billion at December 31, 2006. Corporate loans represent 48.4% of BANCOLOMBIA’s loan portfolio.
Retail and small and medium-sized enterprise (“SME”) loans amounted to Ps. 11,876 billion as of December 31, 2007. They increased 16.2% as compared to the previous quarter and 40.8% over the year, driven by the increase on Colombian household demand and its direct effect on credit appetite. Retail and SME’s loans represent 31.5% of the loan portfolio.
Financial leases amounted to Ps. 4,699 billion, increasing 8.4% as compared to the previous quarter and 32.2% over the year. Financial leases represent 12.5% of the loan portfolio.
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Mortgage loans amounted Ps. 2,884 billion, representing 7.6% of the loan portfolio. In 2007 BANCOLOMBIA securitized approximately Ps. 729 billion of its mortgage loans, of which Ps. 439 billion were securitized on the fourth quarter. After taking into account the securitizations presented on the quarter and the year, mortgage loans origination increased 5.4% as compared to the previous quarter and 25.3% over the year.
2.1.2. | Investment Portfolio |
As of December 31, 2007, BANCOLOMBIA’S net investment securities amounted to Ps. 5,774 billion, representing an increase of 8.3% when compared to September 30, 2007, and a decrease of 19.3% when compared to the pro forma figures as of December 31, 2006.
As of December 31, 2007, investments in debt securities represented 96.9% of BANCOLOMBIA’s net investment securities, which amounted to Ps. 5,596 billion (10.7% of total assets) at the end of the fourth quarter. This represents an increase of 8.2% when compared to September 30, 2007, when such investments amounted to Ps. 5,174 billion (10.6% of total assets), and a decrease of 20.1% as compared to the pro forma figures as of December 31, 2006, when such investments amounted to Ps. 7,004 billion (16.2% of total assets). The quarter over quarter change was mainly due to the increase of 29.3% in Colombian mortgage backed securities “TIPS” as a result of the repurchase of a portion of the mortgages securitized by the Bank on the same period. On a year over year basis, debt investments decreased as a continuation of the asset reallocation that began during 2006 driven by the loan growth dynamic and the decreasing bond prices environment.
TIPS is the name given to the mortgage backed securities in Colombia, securities issued by Titularizadora Colombiana S.A., entity that buys and secures mortgage loans in Colombia. These securities have a tax benefit in Colombia as their income is tax free, benefit that has contributed to the development of a market for this kind of instruments. It is important to highlight that a vast majority of the TIPS BANCOLOMBIA buys are backed by mortgages originated by the Bank according to its credit policies and standards.
Debt securities portfolio breakdown
Government | Government | Corporate | ||||||||||||||||||
Debt Securities | (Colombia) | (Others) | MBS (TIPS) | (Others) | Total | |||||||||||||||
Trading | 20 | % | 0 | % | 2 | % | 12 | % | 34 | % | ||||||||||
Available for sale | 13 | % | 4 | % | 12 | % | 6 | % | 35 | % | ||||||||||
Held to Maturity | 10 | % | 11 | % | 7 | % | 4 | % | 31 | % | ||||||||||
Total | 42 | % | 15 | % | 21 | % | 22 | % | 100 | % | ||||||||||
2.1.3. | Asset Quality |
As of December 31, 2007, the Bank’s past due loans accounted for 2.9% of total loans, increasing from the 2.8% posted as of September 30, 2007. The increase is due to higher interest rates in Colombia, BANCOLOMBIA’s largest market, and the higher participation retail and SME’s segment has reached on the Bank’s loan book. Nonetheless, the level of the coverage measured by the ratio of allowances to past due loans at the end of the quarter increased reaching 134.9%, which is above the average of this measure for the last 3 years.
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The percentage of loans classified as C, D and E increased in the fourth quarter of 2007, representing 3.1% of total loans compared to 2.6% the previous quarter, while the ratio of allowances to loans classified as C, D and E at the end of the fourth quarter of 2007 was 127.4%.
LOANS AND FINANCIAL LEASES CLASSIFICATION | As of 31-Dec-06 | As of 30-Sep-07 | As of 31-Dec-07 | |||||||||||||||||||||
(Ps millions) | Pro forma | |||||||||||||||||||||||
¨A¨ Normal | 28,598,500 | 94.7 | % | 33,732,877 | 95.1 | % | 35,397,502 | 93.9 | % | |||||||||||||||
¨B¨ Subnormal | 842,347 | 2.8 | % | 776,157 | 2.2 | % | 1,135,023 | 3.0 | % | |||||||||||||||
¨C¨ Deficient | 269,922 | 0.9 | % | 248,459 | 0.7 | % | 300,085 | 0.8 | % | |||||||||||||||
¨D¨ Doubtful recovery | 281,398 | 0.9 | % | 456,216 | 1.3 | % | 604,034 | 1.6 | % | |||||||||||||||
¨E¨ Unrecoverable | 214,727 | 0.7 | % | 231,266 | 0.7 | % | 265,980 | 0.7 | % | |||||||||||||||
Total | 30,206,894 | 100 | % | 35,444,975 | 100 | % | 37,702,624 | 100 | % | |||||||||||||||
Loans and financial leases classified as C, D and E as a percentage of total loans and financial leases | 2.5% | 2.6% | 3.1% |
ASSET QUALITY | As of | Growth | ||||||||||||||||||
( Ps millions) | Pro forma | |||||||||||||||||||
31-Dec-06 | 30-Sep-07 | 31-Dec-07 | 4Q 07 / 3Q 07 | 4Q 07 / 4Q 06 | ||||||||||||||||
Total performing past due loans(1) | 425,633 | 435,868 | 438,566 | 0.62 | % | 3.04 | % | |||||||||||||
Total non-performing past due loans | 334,489 | 544,985 | 666,367 | 22.27 | % | 99.22 | % | |||||||||||||
Total past due loans | 760,122 | 980,853 | 1,104,933 | 12.65 | % | 45.36 | % | |||||||||||||
Allowance for loans and accrued interest losses | 1,013,416 | 1,286,330 | 1,490,454 | 15.87 | % | 47.07 | % | |||||||||||||
Past due loans to total loans | 2.52 | % | 2.77 | % | 2.93 | % | ||||||||||||||
Non-performing loans as a percentage of total loans | 1.11 | % | 1.54 | % | 1.77 | % | ||||||||||||||
“C”, “D” and “E” loans as a percentage of total loans | 2.54 | % | 2.64 | % | 3.10 | % | ||||||||||||||
Allowances to past due loans(2) | 133.32 | % | 131.14 | % | 134.89 | % | ||||||||||||||
Allowance for loan and accrued interest losses as a percentage of “C”, “D” and “E” loans(2) | 132.29 | % | 137.44 | % | 127.38 | % | ||||||||||||||
Allowance for loan and accrued interest losses as a percentage of non-performing loans(2) | 302.97 | % | 236.03 | % | 223.67 | % | ||||||||||||||
Allowance for loan and accrued interest losses as a percentage of total loans | 3.35 | % | 3.63 | % | 3.95 | % | ||||||||||||||
Percentage of performing loans to total loans | 98.89 | % | 98.46 | % | 98.23 | % |
(1) | Performing past due loans are loans upon which the Bank continues to recognize income although interests have not been received for those periods. Once interest is unpaid on accrual loans, the loan is classified as non-performing. To check the periods where a loan is past due or non- performing please read the foot note on page 136 of the Bank’s 2006 20-F. Under Colombian Banking regulations, a loan is past due when it is at least 31 days past the actual due date. | |
(2) | Allowance means allowances for loan and accrued interest losses. |
2.2. | Liabilities |
Total deposits increased 12.2% as compared to the third quarter of 2007 and 20.5% over the year ended December 31, 2007, amounting to Ps. 34,374 billion as of December 31, 2007. Non-interest bearing deposits increased 24.9% over the third quarter of 2007 as part of the seasonal effect caused by the higher activity close to the end of the year. Interest bearing deposits increased 9.9% over the third quarter of 2007 and 22.8% as compared to the pro forma figures for the same period in 2006.
The composition of deposits changed throughout the year, specifically, time deposits increased representing 41.6% of the total, compared to 35.2% a year before. Saving deposits represented 36.9% of the deposits compared to a participation of 41.1% in 2006. These changes are explained to a large extent by the marginal reserve requirements imposed by the Colombian authorities in the first half of 2007, imposing higher reserves required for checking accounts and savings accounts than for time deposits, changing the preference among banks in marketing this kind of deposit.
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Dec-06 | Participation | Sep-07 | Participation | Dec-07 | Participation | |||||||||||||||||||
Checking accounts | 6,289,241 | 22.0 | % | 5,472,186 | 17.9 | % | 6,868,275 | 20.0 | % | |||||||||||||||
Time deposits | 10,029,281 | 35.2 | % | 12,952,902 | 42.3 | % | 14,304,727 | 41.6 | % | |||||||||||||||
Savings deposits | 11,723,261 | 41.1 | % | 11,737,909 | 38.3 | % | 12,697,288 | 36.9 | % | |||||||||||||||
Other | 484,400 | 1.7 | % | 478,806 | 1.6 | % | 503,860 | 1.5 | % | |||||||||||||||
Total Deposits | 28,526,183 | 100 | % | 30,641,803 | 100 | % | 34,374,150 | 100% | ||||||||||||||||
2.3. | Shareholders’ Equity |
BANCOLOMBIA’s shareholders’ equity amounted to Ps. 5,199 billion at the end of the fourth quarter of 2007, which represents an increase of 9.0% as compared to the third quarter of 2006 and 20.5% as compared to the pro forma figures for the fourth quarter of 2006. The increase is explained by the financial result of the Bank and the stock issuance occurred in July 2007 (Ps. 927.6 billion).
At the end of the fourth quarter of 2007, the Bank’s consolidated ratio of technical capital to risk-weighted assets was 12.67%, a slight decrease as compared to the 13.28% from the previous quarter. The decrease is explained by the asset growth occurring in the fourth quarter of 2007.
TECHNICAL CAPITAL RISK WEIGHTED ASSETS | ||||||||||||
Consolidated (Ps millions) | Pro forma | |||||||||||
Dec-06 | Sep-07 | Dec-07 | ||||||||||
Basic capital (Tier I) | 3,780,135 | 4,526,042 | 4,729,101 | |||||||||
Additional capital (Tier II) | 491,452 | 1,124,654 | 1,179,216 | |||||||||
Technical capital(1) | 4,271,587 | 5,650,696 | 5,908,317 | |||||||||
Risk weighted assets included market risk | 38,430,728 | 42,549,517 | 46,628,036 | |||||||||
CAPITAL ADEQUACY(2) | 11.12 | % | 13.28 | % | 12.67 | % | ||||||
(1) | Technical capital is the sum of basic capital and additional capital. | |
(2) | Capital Adequacy is technical capital divided by risk weighted assets. |
3. INCOME STATEMENT
BANCOLOMBIA’s net income amounted to Ps. 322.5 billion for the fourth quarter of 2007 and Ps. 1,087 billion for the year ended December 31, 2007, a 31.0% increase as compared to Ps. 829.5 billion pro forma figure for the year ended December 31, 2006,.
3.1. | Net Interest Income |
Interest on loans amounted to Ps. 1,072 billion in the fourth quarter of 2007, increasing 10.3% compared to the third quarter of 2007 On a year over year basis, this represents an increase of 37.9% as compared to the Ps. 776,883 million at December 31, 2006. On the other hand, interests in investment securities reached Ps. 105,916 million for the fourth quarter of 2007, increasing 13.9% as compared to the previous quarter and decreasing 26.0% as compared to the fourth quarter of 2006, decreasing mostly because of the smaller size of the debt securities portfolio.
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3.2. | Provisions |
For the year ended December 31, 2007, provisions for loan and interest losses amounted to Ps. 708 billion, increasing 117.9% as compared to the year ended December 31, 2006. During the fourth quarter of 2007, provisions for loans and interest losses amounted to Ps. 258 billion, increasing 27.0% as compared to the third quarter of 2007.
Recoveries of provisions for foreclosed assets decreased 9.1% in the previous year from Ps. 90 billion.
Total net provisions for the year ended December 31, 2007 amounted to Ps. 597 billion, increasing 158.5% as compared to the pro forma figure for the year ended December 31, 2006. During the fourth quarter of 2007, Total net provisions amounted to Ps. 211 billion, increasing 9.3% as compared to the previous quarter.
3.2.1. Source of provisions charges variation
During 2007, the Bank made the necessary adjustments to fulfill the requirements established by Colombia’s Superintendency of Finance (the “SFC”) in terms of provision charges, which included:
• | The application of a new methodology when calculating provisions for commercial loans based on a reference model developed by the SFC. |
• | Changes to the applicable allowance percentage formula for consumer loans, which increased these percentages for the loans classified as “A” and “B”. |
• | The adjustment of the allowances of BANAGRICOLA, a Salvadorian subsidiary, to Colombia’s regulatory framework, causing additional non-recurrent provisions. |
• | Changes in the methodology used to classify restructured commercial loans. |
BANCOLOMBIA notes that 40% of the Bank’s current allowances are made upon loans classified as “A” which are performing loans. Additionally, the adjustment of BANAGRICOLA’s allowances generated non-recurrent charges that account for 10.8% of the net provisions for the year 2007 and represent 17.6% of the variation between the years 2007 and the pro forma figures for 2006.
3.3. | Fees and Income from Services |
Net fees and income from services amounted to Ps. 1,170 billion during 2007, increasing 7.8% as compared to the pro forma figures as of December 2006, affected by the sale of Almacenar S.A., a former subsidiary, as the Bank did not have any income from warehouse services in 2007; services that represented 6.2% of the total fees and other service income for the year 2006.
In the fourth quarter of 2007, net fees and income from services amounted to Ps. 348,778 million, increasing 23.0% as compared to the previous quarter and 19.9% as compared to Ps. 290,987 million for the fourth quarter of 2006. The increase was mainly driven by higher banking services’ transactions along the fourth quarter of 2007.
BANCOLOMBIA’s accumulated unconsolidated credit card billing increased 35.3% during 2007, resulting in a 23.1% market share of the Colombian credit card business. In addition, the Bank’s number of outstanding credit cards increased 30.19%, resulting in a 16.6% market share at the end of 2007.
7
ACCUMULATED CREDIT CARD BILLING | % | 2007 | ||||||||||||||
(Millions of pesos as of December 31, 2007) | December-06 | December-07 | Growth | Market Share | ||||||||||||
Bancolombia VISA | 1,062,000 | 1,480,725 | 39.43 | % | 7.70 | % | ||||||||||
Bancolombia Mastercard | 1,565,211 | 1,945,680 | 24.31 | % | 10.12 | % | ||||||||||
Bancolombia American Express | 649,902 | 1,007,659 | 55.05 | % | 5.24 | % | ||||||||||
Total Bancolombia | 3,277,113 | 4,434,064 | 35.30 | % | 23.07 | % | ||||||||||
Colombian Credit Card Market | 15,924,066 | 19,218,507 | 20.69 | % |
Source: Credibanco y Redeban multicolor
CREDIT CARD MARKET SHARE | % | 2007 | ||||||||||||||
(Outstanding credit cards as of December 31, 2007) | December-06 | December-07 | Growth | Market Share | ||||||||||||
Bancolombia VISA | 234,066 | 304,612 | 30.14 | % | 5.80 | % | ||||||||||
Bancolombia Mastercard | 288,068 | 336,583 | 16.84 | % | 6.41 | % | ||||||||||
Bancolombia American Express | 149,388 | 232,635 | 55.73 | % | 4.43 | % | ||||||||||
Total Bancolombia | 671,522 | 873,830 | 30.13 | % | 16.64 | % | ||||||||||
Colombian Credit Card Market | 4,538,203 | 5,251,549 | 15.72 | % |
Source: Credibanco y Redeban multicolor
3.4. | Other Operating Income |
Total other operating income amounted to Ps. 307.5 billion for the year ended December 31, 2007, increasing 16.5% as compared to the pro forma figures of 2006. During the fourth quarter of 2007, total other operating income amounted to Ps. 132.2 billion which represents an increase of 38.2% when compared to the third quarter’s figures.
Other operating income was driven by foreign currency forward contracts which had a dynamic year, especially in the Colombian Peso exchange market in which BANCOLOMBIA is a leader given its broad customer base and its contract size capacity.
Revenues from commercial subsidiaries presented a substantial increase as well, driven by the revenue generated by some minor acquisitions undertaken by LEASING BANCOLOMBIA S.A. on 2007 and by the organic growth presented on the rest of the Bank’s commercial subsidiaries.
3.5. | Operating expenses |
Operating expenses increased 6.1% in the year ended December 31, 2007 as compared to the previous year. During the fourth quarter of 2007, operating expenses amounted to Ps. 582,026 million, increasing 9.5% over the third quarter of 2007 but decreasing 5.4% as compared to the pro forma figures for the fourth quarter of 2006.
Personnel expenses(the sum of salaries and employee benefits, bonus plan payment and compensation) implemented for the year 2007 increased 10.7% as compared to the pro forma for the year ended December 31, 2006. Administrative and other expenses increased 5.6% compared to 2006 on the same period, a lower rate of increase compared to the 11.2% increase in the previous year. This decline is the result of a stricter policy concerning expenses implemented in 2007.
BANCOLOMBIA’s ratio of operating expenses to net operating income improved for the year 2007 reaching 53.0%, a lower ratio than the 62.5% from 2006 pro forma figures. On a quarterly basis, the cost to income efficiency ratio reached 47.4%.
The Bank’s efficiency, measured as operating expenses over average total assets, was 4.8% for the year 2007, a decline as compared to the 5.06% from the pro forma figures for 2006.
8
PRINCIPAL RATIOS | Quarter | As of | ||||||||||||||||||
4Q 06(1) | 3Q 07 | 4Q 07 | Dec-06(2) | Dec-07(3) | ||||||||||||||||
PROFITABILITY | Pro forma | Pro forma | ||||||||||||||||||
Net interest margin(4) | 6.90 | % | 6.99 | % | 7.17 | % | 5.54 | % | 6.80 | % | ||||||||||
Return on average total assets(5) | 2.80 | % | 2.70 | % | 2.57 | % | 1.92 | % | 2.30 | % | ||||||||||
Return on average shareholders’ equity(6) | 29.26 | % | 28.81 | % | 25.99 | % | 19.22 | % | 24.41 | % | ||||||||||
EFFICIENCY | ||||||||||||||||||||
Operating expenses to net operating income | 63.20 | % | 50.29 | % | 47.44 | % | 62.47 | % | 53.01 | % | ||||||||||
Operating expenses to average total assets(7) | 5.99 | % | 4.70 | % | 4.80 | % | 5.00 | % | 4.82 | % | ||||||||||
CAPITAL ADEQUACY | ||||||||||||||||||||
Shareholders’ equity to total assets | 9.97 | % | 9.79 | % | 9.14 | % | ||||||||||||||
Technical capital to risk weighted assets | 11.12 | % | 13.28 | % | 12.67 | % |
(1) | Calculated taking into account an average between the figures as of September 2006 and as of December 2006. | |
(2) | Calculated with the pro forma figures at the end of December 2006. | |
(3) | Calculated with the pro forma figures at the end of December 2007. | |
(4) | Net interest income divided by monthly average interest-earning assets. | |
(5) | Net income by monthly average assets. | |
(6) | Net income by monthly average shareholders’ equity. | |
(7) | Operating expenses divided by monthly average assets. |
9
BALANCE SHEET | ||||||||||||||||||||
Last | ||||||||||||||||||||
(Ps. Million) | Dec-06 | Sep-07 | Dec-07 | Quarter | Annual | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | 2,421,256 | 2,846,131 | 3,618,619 | 27.14 | % | 49.45 | % | |||||||||||||
Overnight funds sold | 457,614 | 1,691,508 | 1,609,768 | -4.83 | % | 251.77 | % | |||||||||||||
Total cash and equivalents | 2,878,870 | 4,537,639 | 5,228,387 | 15.22 | % | 81.61 | % | |||||||||||||
Debt securities | 7,003,946 | 5,173,644 | 5,596,051 | 8.16 | % | -20.10 | % | |||||||||||||
Trading | 2,605,851 | 1,745,887 | 1,916,012 | 9.74 | % | -26.47 | % | |||||||||||||
Available for Sale | 1,987,901 | 1,549,168 | 1,954,593 | 26.17 | % | -1.68 | % | |||||||||||||
Held to Maturity | 2,410,194 | 1,878,589 | 1,725,446 | -8.15 | % | -28.41 | % | |||||||||||||
Equity securities | 231,577 | 235,401 | 253,747 | 7.79 | % | 9.57 | % | |||||||||||||
Trading | 61,640 | 77,272 | 93,125 | 20.52 | % | 51.08 | % | |||||||||||||
Available for Sale | 169,937 | 158,129 | 160,622 | 1.58 | % | -5.48 | % | |||||||||||||
Market value allowance | -77,756 | -77,409 | -75,547 | -2.41 | % | -2.84 | % | |||||||||||||
Net investment securities | 7,157,767 | 5,331,636 | 5,774,251 | 8.30 | % | -19.33 | % | |||||||||||||
Commercial loans | 19,037,058 | 21,789,482 | 23,397,058 | 7.38 | % | 22.90 | % | |||||||||||||
Consumer loans | 5,052,289 | 6,189,229 | 6,593,211 | 6.53 | % | 30.50 | % | |||||||||||||
Small business loans | 113,252 | 116,344 | 129,900 | 11.65 | % | 14.70 | % | |||||||||||||
Mortgage loans | 2,449,679 | 3,017,151 | 2,883,628 | -4.43 | % | 17.71 | % | |||||||||||||
Finance lease | 3,554,616 | 4,332,769 | 4,698,827 | 8.45 | % | 32.19 | % | |||||||||||||
Allowance for loan losses | -999,076 | -1,256,642 | -1,457,151 | 15.96 | % | 45.85 | % | |||||||||||||
Net total loans and financial leases | 29,207,818 | 34,188,333 | 36,245,473 | 6.02 | % | 24.10 | % | |||||||||||||
Accrued interest receivable on loans | 293,166 | 400,825 | 431,863 | 7.74 | % | 47.31 | % | |||||||||||||
Allowance for accrued interest losses | -14,340 | -29,688 | -33,303 | 12.18 | % | 132.24 | % | |||||||||||||
Net total interest accrued | 278,826 | 371,137 | 398,560 | 7.39 | % | 42.94 | % | |||||||||||||
Customers’ acceptances and derivatives | 169,514 | 178,461 | 196,001 | 9.83 | % | 15.63 | % | |||||||||||||
Net accounts receivable | 635,580 | 676,696 | 716,106 | 5.82 | % | 12.67 | % | |||||||||||||
Net premises and equipment | 883,327 | 806,688 | 855,818 | 6.09 | % | -3.11 | % | |||||||||||||
Foreclosed assets, net | 43,400 | 27,893 | 32,294 | 15.78 | % | -25.59 | % | |||||||||||||
Prepaid expenses and deferred charges | 77,063 | 133,953 | 137,901 | 2.95 | % | 78.95 | % | |||||||||||||
Goodwill | 731,019 | 917,025 | 977,095 | 6.55 | % | 33.66 | % | |||||||||||||
Operating leases, net | 168,268 | 414,959 | 488,333 | 17.68 | % | 190.21 | % | |||||||||||||
Other | 682,160 | 739,947 | 580,642 | -21.53 | % | -14.88 | % | |||||||||||||
Reappraisal of assets | 348,364 | 359,593 | 520,788 | 44.83 | % | 49.50 | % | |||||||||||||
Total assets | 43,261,976 | 48,683,960 | 52,151,649 | 7.12 | % | 20.55 | % | |||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||
DEPOSITS | ||||||||||||||||||||
Non-interest bearing | 5,259,098 | 4,647,520 | 5,804,724 | 24.90 | % | 10.37 | % | |||||||||||||
Checking accounts | 4,774,698 | 4,168,714 | 5,300,864 | 27.16 | % | 11.02 | % | |||||||||||||
Other | 484,400 | 478,806 | 503,860 | 5.23 | % | 4.02 | % | |||||||||||||
Interest bearing | 23,267,085 | 25,994,283 | 28,569,426 | 9.91 | % | 22.79 | % | |||||||||||||
Checking accounts | 1,514,543 | 1,303,472 | 1,567,411 | 20.25 | % | 3.49 | % | |||||||||||||
Time deposits | 10,029,281 | 12,952,902 | 14,304,727 | 10.44 | % | 42.63 | % | |||||||||||||
Savings deposits | 11,723,261 | 11,737,909 | 12,697,288 | 8.17 | % | 8.31 | % | |||||||||||||
Total deposits | 28,526,183 | 30,641,803 | 34,374,150 | 12.18 | % | 20.50 | % | |||||||||||||
Overnight funds | 1,007,045 | 2,127,637 | 2,005,490 | -5.74 | % | 99.15 | % | |||||||||||||
Bank acceptances outstanding | 64,030 | 52,378 | 55,208 | 5.40 | % | -13.78 | % | |||||||||||||
Interbank borrowings | 2,137,051 | 1,170,339 | 1,506,611 | 28.73 | % | -29.50 | % | |||||||||||||
Borrowings from domestic development banks | 2,559,492 | 3,270,537 | 3,344,635 | 2.27 | % | 30.68 | % | |||||||||||||
Accounts payable | 1,018,754 | 2,191,160 | 1,714,418 | -21.76 | % | 68.29 | % | |||||||||||||
Accrued interest payable | 225,169 | 269,085 | 286,627 | 6.52 | % | 27.29 | % | |||||||||||||
Other liabilities | 485,501 | 479,070 | 503,433 | 5.09 | % | 3.69 | % | |||||||||||||
Bonds | 2,500,101 | 2,937,268 | 2,850,730 | -2.95 | % | 14.02 | % | |||||||||||||
Accrued expenses | 191,017 | 606,235 | 218,860 | -63.90 | % | 14.58 | % | |||||||||||||
Minority interest in consolidated subsidiaries | 232,952 | 171,029 | 92,217 | -46.08 | % | -60.41 | % | |||||||||||||
Total liabilities | 38,947,295 | 43,916,541 | 46,952,379 | 6.91 | % | 20.55 | % | |||||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Subscribed and paid in capital | 387,093 | 393,914 | 393,914 | 0.00 | % | 1.76 | % | |||||||||||||
Retained earnings | 3,339,644 | 3,789,802 | 4,082,419 | 7.72 | % | 22.24 | % | |||||||||||||
Appropiated | 2,510,156 | 3,025,375 | 2,995,496 | -0.99 | % | 19.34 | % | |||||||||||||
Unappropiated | 829,488 | 764,427 | 1,086,923 | 42.19 | % | 31.04 | % | |||||||||||||
Reappraisal and others | 577,284 | 617,514 | 752,589 | 21.87 | % | 30.37 | % | |||||||||||||
Gross unrealized gain or loss on debt securities | 10,660 | -33,811 | -29,652 | -12.30 | % | -378.16 | % | |||||||||||||
Total shareholder’s equity | 4,314,681 | 4,767,419 | 5,199,270 | 9.06 | % | 20.50 | % | |||||||||||||
10
Pro forma | ||||||||||||||||||||||||||||||||
INCOME STATEMENT | Pro forma | Dec-06/ | 4Q 07/ | 4Q 07/ | ||||||||||||||||||||||||||||
(Ps Millions) | Dec-06 | Dec-07 | Dec-07 | 4Q 06 | 3Q 07 | 4Q 07 | 3Q 07 | 4Q 06 | ||||||||||||||||||||||||
Interest income and expenses | ||||||||||||||||||||||||||||||||
Interest on loans | 2,806,206 | 3,707,751 | 32.13 | % | 776,883 | 971,352 | 1,071,515 | 10.31 | % | 37.92 | % | |||||||||||||||||||||
Interest on investment securities | 337,533 | 416,644 | 23.44 | % | 143,117 | 92,996 | 105,916 | 13.89 | % | -25.99 | % | |||||||||||||||||||||
Overnight funds | 72,265 | 115,324 | 59.58 | % | 21,488 | 29,540 | 29,316 | -0.76 | % | 36.43 | % | |||||||||||||||||||||
Leasing | 384,194 | 570,689 | 48.54 | % | 110,524 | 148,796 | 168,954 | 13.55 | % | 52.87 | % | |||||||||||||||||||||
Total interest income | 3,600,198 | 4,810,408 | 33.62 | % | 1,052,012 | 1,242,684 | 1,375,701 | 10.70 | % | 30.77 | % | |||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||||||
Checking accounts | 39,548 | 39,076 | -1.19 | % | 10,375 | 9,126 | 10,595 | 16.10 | % | 2.12 | % | |||||||||||||||||||||
Time deposits | 561,761 | 816,688 | 45.38 | % | 153,643 | 219,594 | 250,289 | 13.98 | % | 62.90 | % | |||||||||||||||||||||
Savings deposits | 276,887 | 461,437 | 66.65 | % | 82,871 | 119,021 | 129,902 | 9.14 | % | 56.75 | % | |||||||||||||||||||||
Total interest on deposits | 878,196 | 1,317,201 | 49.99 | % | 246,889 | 347,741 | 390,786 | 12.38 | % | 58.28 | % | |||||||||||||||||||||
Interbank borrowings | 160,818 | 109,843 | -31.70 | % | 33,108 | 20,966 | 18,775 | -10.45 | % | -43.29 | % | |||||||||||||||||||||
Borrowings from domestic development banks | 188,217 | 274,484 | 45.83 | % | 52,247 | 73,029 | 81,678 | 11.84 | % | 56.33 | % | |||||||||||||||||||||
Overnight funds | 100,876 | 131,127 | 29.99 | % | 25,910 | 39,166 | 38,557 | -1.55 | % | 48.81 | % | |||||||||||||||||||||
Bonds | 158,617 | 169,435 | 6.82 | % | 44,911 | 45,705 | 58,553 | 28.11 | % | 30.38 | % | |||||||||||||||||||||
Total interest expense | 1,486,724 | 2,002,090 | 34.66 | % | 403,065 | 526,607 | 588,349 | 11.72 | % | 45.97 | % | |||||||||||||||||||||
Net interest income | 2,113,474 | 2,808,318 | 32.88 | % | 648,947 | 716,077 | 787,352 | 9.95 | % | 21.33 | % | |||||||||||||||||||||
Provision for loan and accrued interest losses, net | (324,876 | ) | (707,865 | ) | 117.89 | % | (46,406 | ) | (203,047 | ) | (257,857 | ) | 26.99 | % | 455.65 | % | ||||||||||||||||
Recovery of charged-off loans | 85,785 | 89,997 | 4.91 | % | 25,155 | 24,222 | 24,525 | 1.25 | % | -2.50 | % | |||||||||||||||||||||
Provision for foreclosed assets and other assets | (81,444 | ) | (60,531 | ) | -25.68 | % | (23,694 | ) | (22,963 | ) | (6,810 | ) | -70.34 | % | -71.26 | % | ||||||||||||||||
Recovery of provisions for foreclosed assets and other assets | 89,535 | 81,364 | -9.13 | % | 24,221 | 9,079 | 29,423 | 224.08 | % | 21.48 | % | |||||||||||||||||||||
Total net provisions | (231,000 | ) | (597,035 | ) | 158.46 | % | (20,724 | ) | (192,709 | ) | (210,719 | ) | 9.35 | % | 916.79 | % | ||||||||||||||||
Net interest income after provision for loans and accrued interest losses | 1,882,474 | 2,211,283 | 17.47 | % | 628,223 | 523,368 | 576,633 | 10.18 | % | -8.21 | % | |||||||||||||||||||||
Commissions from banking services and other services | 225,463 | 324,352 | 43.86 | % | 62,441 | 75,196 | 124,405 | 65.44 | % | 99.24 | % | |||||||||||||||||||||
Electronic services and ATM fees | 91,971 | 80,711 | -12.24 | % | 21,964 | 20,955 | 22,630 | 7.99 | % | 3.03 | % | |||||||||||||||||||||
Branch network services | 73,961 | 104,601 | 41.43 | % | 23,942 | 25,869 | 28,006 | 8.26 | % | 16.97 | % | |||||||||||||||||||||
Collections and payments fees | 93,336 | 130,421 | 39.73 | % | 27,800 | 32,937 | 36,925 | 12.11 | % | 32.82 | % | |||||||||||||||||||||
Credit card merchant fees | 16,909 | 39,191 | 131.78 | % | 7,385 | 8,800 | 11,085 | 25.97 | % | 50.10 | % | |||||||||||||||||||||
Credit and debit card annual fees | 240,676 | 258,937 | 7.59 | % | 59,080 | 66,000 | 73,192 | 10.90 | % | 23.89 | % | |||||||||||||||||||||
Checking fees | 60,923 | 67,438 | 10.69 | % | 15,942 | 16,546 | 17,792 | 7.53 | % | 11.60 | % | |||||||||||||||||||||
Warehouse services(2) | 72,494 | — | * | 19,763 | — | — | 0.00 | % | * | |||||||||||||||||||||||
Fiduciary activities | 62,901 | 69,200 | 10.01 | % | 18,598 | 17,161 | 19,244 | 12.14 | % | 3.47 | % | |||||||||||||||||||||
Pension plan administration | 89,135 | 82,453 | -7.50 | % | 22,634 | 20,912 | 20,274 | -3.05 | % | -10.42 | % | |||||||||||||||||||||
Brokerage fees | 74,378 | 62,493 | -15.98 | % | 21,215 | 12,539 | 20,005 | 59.54 | % | -5.70 | % | |||||||||||||||||||||
Check remittance | 23,395 | 22,762 | -2.71 | % | 6,112 | 5,672 | 5,964 | 5.15 | % | -2.42 | % | |||||||||||||||||||||
International operations | 37,173 | 43,643 | 17.41 | % | 9,936 | 10,357 | 12,454 | 20.25 | % | 25.34 | % | |||||||||||||||||||||
Fees and other service income | 1,162,715 | 1,286,202 | 10.62 | % | 316,812 | 312,944 | 391,976 | 25.25 | % | 23.73 | % | |||||||||||||||||||||
Fees and other service expenses | (77,438 | ) | (116,453 | ) | 50.38 | % | (25,825 | ) | (29,395 | ) | (43,198 | ) | 46.96 | % | 67.27 | % | ||||||||||||||||
Total fees and income from services, net | 1,085,277 | 1,169,749 | 7.78 | % | 290,987 | 283,549 | 348,778 | 23.00 | % | 19.86 | % | |||||||||||||||||||||
Other operating income | ||||||||||||||||||||||||||||||||
Net foreign exchange gains | 49,644 | 27,584 | -44.44 | % | (56,983 | ) | 100,996 | 13,313 | -86.82 | % | 123.36 | % | ||||||||||||||||||||
Forward contracts in foreign currency | 48,358 | 141,930 | 193.50 | % | 74,810 | (40,634 | ) | 72,224 | 277.74 | % | -3.46 | % | ||||||||||||||||||||
Gains on sales of investments on equity securities | 75,697 | (15,034 | ) | -119.86 | % | 26,749 | (101 | ) | 190 | 288.12 | % | -99.29 | % | |||||||||||||||||||
Gains on sale of mortgage loan | 14,371 | 7,304 | -49.18 | % | 14,371 | 857 | 6,447 | 652.28 | % | -55.14 | % | |||||||||||||||||||||
Dividend income | 21,201 | 18,968 | -10.53 | % | (430 | ) | 2,460 | 362 | -85.28 | % | 184.19 | % | ||||||||||||||||||||
Revenues from commercial subsidiaries | 40,323 | 101,148 | 150.84 | % | 9,100 | 22,854 | 34,779 | 52.18 | % | 282.19 | % | |||||||||||||||||||||
Insurance income | (2,754 | ) | 8,013 | 390.96 | % | 1,430 | (676 | ) | 6,520 | 1064.50 | % | 355.94 | % | |||||||||||||||||||
Communication, postage, rent and others | 17,000 | 17,572 | 3.36 | % | 5,043 | 9,926 | (1,628 | ) | -116.40 | % | -132.28 | % | ||||||||||||||||||||
Total other operating income | 263,840 | 307,485 | 16.54 | % | 74,090 | 95,682 | 132,207 | 38.17 | % | 78.44 | % | |||||||||||||||||||||
Total income | 3,231,591 | 3,688,517 | 14.14 | % | 993,300 | 902,599 | 1,057,618 | 17.17 | % | 6.48 | % | |||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | 785,593 | 835,150 | �� | 6.31 | % | 210,247 | 205,180 | 217,124 | 5.82 | % | 3.27 | % | ||||||||||||||||||||
Bonus plan payments | 58,705 | 84,226 | 43.47 | % | 24,241 | 17,545 | 31,917 | 81.92 | % | 31.67 | % | |||||||||||||||||||||
Compensation | 7,731 | 23,463 | 203.49 | % | 4,337 | 6,826 | 6,224 | -8.82 | % | 43.51 | % | |||||||||||||||||||||
Administrative and other expenses | 1,013,960 | 1,071,139 | 5.64 | % | 302,361 | 259,065 | 271,555 | 4.82 | % | -10.19 | % | |||||||||||||||||||||
Deposit security, net | 67,978 | 49,113 | -27.75 | % | 18,443 | 12,515 | 12,282 | -1.86 | % | -33.41 | % | |||||||||||||||||||||
Donation expenses | 24,556 | 15,375 | -37.39 | % | 23,168 | 601 | 12,980 | 2059.73 | % | -43.97 | % | |||||||||||||||||||||
Depreciation | 116,060 | 122,835 | 5.84 | % | 32,616 | 29,695 | 29,944 | 0.84 | % | -8.19 | % | |||||||||||||||||||||
Total operating expenses | 2,074,583 | 2,201,301 | 6.11 | % | 615,413 | 531,427 | 582,026 | 9.52 | % | -5.43 | % | |||||||||||||||||||||
Net operating income | 1,157,008 | 1,487,216 | 28.54 | % | 377,887 | 371,172 | 475,592 | 28.13 | % | 25.86 | % | |||||||||||||||||||||
Merger expenses | 35,779 | — | * | 9,476 | — | — | 0.00 | % | * | |||||||||||||||||||||||
Goodwill amortization(1) | 52,746 | 70,411 | 33.49 | % | 16,005 | 19,399 | 19,695 | 1.53 | % | 23.06 | % | |||||||||||||||||||||
Non-operating income (expense) Other income | 139,074 | 126,796 | -8.83 | % | (30,216 | ) | 37,003 | 25,636 | -30.72 | % | 184.84 | % | ||||||||||||||||||||
Minority interest | (41,339 | ) | (13,246 | ) | -67.96 | % | 4,124 | (2,174 | ) | 12,826 | 689.97 | % | 211.01 | % | ||||||||||||||||||
Other expense | (117,095 | ) | (81,549 | ) | -30.36 | % | 21,945 | (20,862 | ) | (34,641 | ) | 66.05 | % | -257.85 | % | |||||||||||||||||
Total non-operating income | (19,360 | ) | 32,001 | 265.29 | % | (4,147 | ) | 13,967 | 3,821 | -72.64 | % | 192.14 | % | |||||||||||||||||||
Income before income taxes | 1,049,123 | 1,448,806 | 38.10 | % | 348,259 | 365,740 | 459,718 | 25.70 | % | 32.00 | % | |||||||||||||||||||||
Income tax expense | (219,635 | ) | (361,883 | ) | 64.77 | % | (49,432 | ) | (49,007 | ) | (137,222 | ) | 180.00 | % | 177.60 | % | ||||||||||||||||
Net income | 829,488 | 1,086,923 | 31.04 | % | 298,827 | 316,733 | 322,496 | 1.82 | % | 7.92 | % | |||||||||||||||||||||
11
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 10, 2008 | By: | /s/ JAIME ALBERTO VELÁSQUEZ B. | ||
Name: | Jaime Alberto Velásquez B. | |||
Title: | Vice President of Finance | |||