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SECURITIES AND EXCHANGE COMMISSION
o | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(Translation of Registrant’s name into English)
(Jurisdiction of incorporation or organization)
Medellin, Colombia
(Address of principal executive offices)
Calle 50 No. 51 – 66, Medellín, Colombia
Tel. +574 510 8866, Fax. + 574 510 8871, e-mail: juatoro@bancolombia.com
(Name, Telephone, E-Mail and/or Facsimile number and Address of Company Contact Person)
Title of each Class | Name of each exchange on which registered | |
American Depositary Shares | New York Stock Exchange | |
Preferred Shares | New York Stock Exchange* |
* | Bancolombia’s preferred shares are not listed for trading directly, but only in connection with its American Depositary Shares, which are evidenced by American Depositary Receipts, each representing 4 preferred shares. |
Not applicable
(Title of Class)
Not applicable
(Title of Class)
Common Shares | 509,704,584 | |||
Preferred Shares | 278,122,419 |
Large accelerated filerþ | Accelerated filero | Non-accelerated filero |
U.S. GAAP | International Financial Reporting Standards as issued by the International Accounting Standards Board | Otherþ |
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Exhibit 7. | ||||||||
Exhibit 8.1 | ||||||||
Exhibit 11 | ||||||||
Exhibit 12.1 | ||||||||
Exhibit 12.2 | ||||||||
Exhibit 13.1 | ||||||||
Exhibit 13.2 | ||||||||
Exhibit 15(a) |
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• | changes in general economic, business, political, social, fiscal or other conditions in Colombia or changes in general economic or business conditions in Latin America; |
• | changes in capital markets or in markets in general that may affect policies or attitudes towards lending; |
• | unanticipated increases in financing and other costs or the inability to obtain additional debt or equity financing on attractive terms; |
• | inflation, changes in foreign exchange rates and/or interest rates; |
• | sovereign risks; |
• | liquidity risks; |
• | increases in defaults by the Bank’s borrowers and other loan delinquencies; |
• | lack of acceptance of new products or services by the Bank’s targeted customers; |
• | competition in the banking, financial services, credit card services, insurance, asset management, remittances business and other industries in which the Bank operates; |
• | adverse determination of legal or regulatory disputes or proceedings; |
• | changes in official regulations and the Colombian government’s banking policy as well as changes in laws, regulations or policies in the jurisdictions in which the Bank does business; |
• | regulatory issues relating to acquisitions; and |
• | changes in business strategy. |
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As of and for the year ended December 31, | ||||||||||||||||||||||||
2003 | 2004 | 2005(9) | 2006 | 2007(10) | 2007(1) | |||||||||||||||||||
(In millions of Ps and thousands of US$(1), except per share and per American Depositary Share (“ADS”) amounts) | ||||||||||||||||||||||||
CONSOLIDATED STATEMENT OF OPERATIONS: | ||||||||||||||||||||||||
Colombian GAAP: | ||||||||||||||||||||||||
Interest income | Ps | 1,537,818 | Ps | 1,803,108 | Ps | 3,200,084 | Ps | 3,013,732 | Ps | 4,810,408 | US$ | 2,387,584 | ||||||||||||
Interest expense | (480,513 | ) | (585,743 | ) | (1,150,274 | ) | (1,246,229 | ) | (2,002,090 | ) | (993,711 | ) | ||||||||||||
Net interest income | 1,057,305 | 1,217,365 | 2,049,810 | 1,767,503 | 2,808,318 | 1.393,873 | ||||||||||||||||||
Provisions for loans and accrued interest losses, net of recoveries(2) | (130,356 | ) | (61,423 | ) | (123,575 | ) | (195,361 | ) | (617,868 | ) | (306,671 | ) | ||||||||||||
Provision for foreclosed assets and other assets, net of recoveries(3) | (51,943 | ) | (5,201 | ) | (7,465 | ) | 45,179 | 20,833 | 10,340 | |||||||||||||||
Net interest income after provisions | 875,006 | 1,150,741 | 1,918,770 | 1,617,321 | 2,211,283 | 1,097,542 | ||||||||||||||||||
Fees and income from services and other operating income, net(4) | 515,325 | 574,453 | 962,277 | 1,139,094 | 1,477,234 | 733,206 | ||||||||||||||||||
Operating expenses | (850,768 | ) | (912,421 | ) | (1,654,805 | ) | (1,871,000 | ) | (2,271,712 | ) | (1,127,535 | ) | ||||||||||||
Net operating income | 539,563 | 812,773 | 1,226,242 | 885,415 | 1,416,805 | 703,213 | ||||||||||||||||||
Total non-operating income (expense), excluding minority interest | (7,874 | ) | 7,140 | 4,650 | 45,346 | 45,247 | 22,457 | |||||||||||||||||
Minority interest (loss) | 330 | (2,425 | ) | (6,496 | ) | (6,352 | ) | (13,246 | ) | (6,574 | ) | |||||||||||||
Income before income taxes | 532,019 | 817,488 | 1,224,396 | 924,409 | 1,448,806 | 719,096 | ||||||||||||||||||
Income taxes | (62,635 | ) | (238,810 | ) | (277,515 | ) | (174,880 | ) | (361,883 | ) | (179,616 | ) | ||||||||||||
Net income | Ps | 469,384 | Ps | 578,678 | Ps | 946,881 | Ps | 749,529 | Ps | 1,086,923 | US$ | 539,480 | ||||||||||||
Weighted average of Preferred and Common Shares outstanding(5) | 576,695,395 | 576,695,395 | 652,882,756 | 727,827,005 | 758,313,771 | |||||||||||||||||||
Basic and Diluted net operating income per share(5) | Ps | 857 | Ps | 1,297 | Ps | 1,878 | Ps | 1,217 | 1,868 | US$ | 0.93 | |||||||||||||
Basic and Diluted net operating income per ADS(11) | 3,427 | 5,189 | 7,513 | 4,866 | 7,473 | 3.71 | ||||||||||||||||||
Basic and Diluted net income per share(5) | 814 | 1,003 | 1,450 | 1,030 | 1,433 | 0.71 | ||||||||||||||||||
Basic and Diluted net income per ADS(11) | 3,256 | 4,012 | 5,800 | 4,119 | 5,733 | 2.85 | ||||||||||||||||||
Cash dividends declared per share(6) | 272 | 376 | 508 | 532 | 568 | 0.28 | ||||||||||||||||||
Cash dividends declared per share(6)(stated in US Dollars) | 0.10 | 0.16 | 0.22 | 0.24 | 0.28 | |||||||||||||||||||
Cash dividends declared per ADS(11) | 1,088 | 1,504 | 2,032 | 2,128 | 2,272 | |||||||||||||||||||
Cash dividends declared per ADS (stated in US Dollars) | 0.39 | 0.63 | 0.88 | 0.95 | 1.13 | |||||||||||||||||||
U.S. GAAP:(7) | ||||||||||||||||||||||||
Net income | Ps | 474,419 | Ps | 642,126 | Ps | 891,121 | Ps | 941,183 | Ps | 1,015,644 | US$ | 504,102 | ||||||||||||
Basic and Diluted net income per common share(8) | 1,070 | 1,445 | 1,715 | 1,619 | 1,683 | 0.84 | ||||||||||||||||||
Basic and Diluted net income per ADS(8) (11) | 4,280 | 5,780 | 6,860 | 6,476 | 6,732 | 3.34 |
(1) | Amounts stated in U.S dollars have been translated at the rate of Ps 2,014.76 to US$ 1.00, which is the Representative Market Rate calculated on December 31, 2007 (the last business day of 2007), as reported and certified by the Superintendency of Finance. | |
(2) | Represents the provision for loan, accrued interest losses and other receivables, net and recovery of charged-off loans. Includes a provision for accrued interest losses amounting to Ps 5,316, Ps 4,483, Ps 12,379, Ps 14,825 and Ps 34,543 for the years ended December 31, 2003, 2004, 2005, 2006 and 2007, respectively. | |
(3) | Represents the provision for foreclosed assets and other assets and the recovery of provisions for foreclosed assets and other assets. | |
(4) | Represents the total fees and income from services, net and the total other operating income. | |
(5) | The weighted average of preferred and common shares outstanding for fiscal years 2003 and 2004 included 178,435,787 preferred shares and 398,259,608 common shares. For fiscal year 2005, it included 198,261,641 preferred shares and 454,621,115 common shares. For fiscal year 2006, it included 218,122,421 preferred shares and 509,704,584 common shares. For fiscal year 2007, it included 253,300,502 preferred shares and 509,704,584 common shares. | |
(6) | This data is presented on an annualized basis. | |
(7) | Refer to Note 31 to the Financial Statements included in this Annual Report for the reconciliation with U.S. GAAP. | |
(8) | Under U.S. GAAP, these shares are considered outstanding since the beginning of the earliest period presented. Net income per share under U.S. GAAP is presented on the basis of net income available to common stockholders divided by the weighted average number of common shares outstanding (398,258,607 for each of 2003 and 2004; 454,621,115 for 2005 and 509,704,584 for 2006 and 2007). See Note 31 to the Financial Statements included in this Annual Report. | |
(9) | The consolidated statement of operations for the year ended December 31, 2005, includes Conavi and Corfinsura’s results since the beginning of the year. | |
(10) | The consolidated statement of operations for the year ended December 31, 2007 includes Banagrícola’s results since the beginning of the year. | |
(11) | Each ADS is equivalent to four preferred shares of Bancolombia |
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As of and for the year ended December 31, | ||||||||||||||||||||||||
2003 | 2004 | 2005(5) | 2006 | 2007(6) | 2007(1) | |||||||||||||||||||
(In millions of Ps and thousands of US$(1), except per share and per American Depositary Share (“ADS”) amounts) | ||||||||||||||||||||||||
CONSOLIDATED BALANCE SHEET | ||||||||||||||||||||||||
Colombian GAAP: | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and due from banks | Ps | 848,052 | Ps | 768,514 | Ps | 1,241,435 | Ps | 1,548,752 | Ps | 3,618,619 | US$ | 1,796,055 | ||||||||||||
Overnight funds | 598,409 | 480,846 | 488,587 | 457,614 | 1,609,768 | 798,987 | ||||||||||||||||||
Investment securities, net | 4,336,724 | 5,250,211 | 8,459,703 | 5,677,761 | 5,774,251 | 2,865,975 | ||||||||||||||||||
Loans and financial leases, net | 7,642,405 | 9,600,861 | 17,920,370 | 23,811,391 | 36,245,473 | 17,989,971 | ||||||||||||||||||
Accrued interest receivable on loans, net | 103,209 | 121,276 | 198,266 | 255,290 | 398,560 | 197,820 | ||||||||||||||||||
Customers’ acceptances and derivatives | 1,539 | 43,894 | 133,420 | 166,395 | 196,001 | 97,283 | ||||||||||||||||||
Accounts receivable, net | 163,310 | 173,875 | 590,313 | 562,598 | 716,106 | 355,430 | ||||||||||||||||||
Premises and equipment, net | 337,964 | 346,243 | 623,729 | 712,722 | 855,818 | 424,774 | ||||||||||||||||||
Operating leases, net(4) | 537,207 | 8,311 | 143,974 | 167,307 | 488,333 | 242,378 | ||||||||||||||||||
Foreclosed assets, net | 27,676 | 12,206 | 31,360 | 18,611 | 32,294 | 16,029 | ||||||||||||||||||
Prepaid expenses and deferred charges | 27,831 | 15,950 | 26,898 | 46,462 | 137,901 | 68,445 | ||||||||||||||||||
Goodwill | 99,910 | 73,607 | 50,959 | 40,164 | 977,095 | 484,968 | ||||||||||||||||||
Other assets | 198,480 | 315,394 | 563,588 | 675,265 | 580,642 | 288,194 | ||||||||||||||||||
Reappraisal of assets | 253,413 | 267,941 | 330,915 | 348,364 | 520,788 | 258,486 | ||||||||||||||||||
Total assets | Ps | 15,176,129 | Ps | 17,479,129 | Ps | 30,803,517 | Ps | 34,488,696 | Ps | 52,151,649 | US$ | 25,884,795 | ||||||||||||
Liabilities and shareholders’ equity: | ||||||||||||||||||||||||
Deposits | Ps | 10,231,997 | Ps | 11,862,116 | Ps | 18,384,982 | Ps | 23,216,467 | Ps | 34,374,150 | US$ | 17,061,164 | ||||||||||||
Borrowings(7) | 1,211,595 | 1,104,201 | 3,927,551 | 3,516,426 | 4,851,246 | 2,407,853 | ||||||||||||||||||
Other liabilities | 2,043,158 | 2,422,089 | 5,113,694 | 4,109,191 | 7,726,983 | 3,835,187 | ||||||||||||||||||
Shareholders’ equity | 1,689,379 | 2,090,723 | 3,377,290 | 3,646,612 | 5,199,270 | 2,580,591 | ||||||||||||||||||
Total liabilities and shareholders’ equity | Ps | 15,176,129 | Ps | 17,479,129 | Ps | 30,803,517 | Ps | 34,488,696 | Ps | 52,151,649 | US$ | 25,884,795 | ||||||||||||
U.S. GAAP(2): | ||||||||||||||||||||||||
Shareholders’ equity | Ps | 1,832,886 | Ps | 2,267,286 | Ps | 4,125,996 | Ps | 4,549,018 | Ps | 5,937,554 | US$ | 2,947,028 | ||||||||||||
Shareholders’ equity per share(3) (8) | 3,178 | 3,932 | 6,320 | 6,250 | 7,830 | 3.89 | ||||||||||||||||||
Shareholders’ equity per ADS(3) (8) | 12,712 | 15,728 | 25,280 | 25,001 | 31,320 | 15.55 |
(1) | Amounts stated in U.S dollars have been converted at the rate of Ps 2,014.76 to US$ 1.00, which is the Representative Market Rate calculated on December 31, 2007 (the last business day of 2007) as reported and certified by the Superintendency of Finance. | |
(2) | Refer to Note 31 to the Financial Statements included in this Annual Report for the reconciliation for U.S. GAAP. | |
(3) | Shareholders’ equity per share is calculated on the basis of the number of common shares and preferred shares. The weighted average (rounded to the nearest million) of preferred and common shares outstanding was 577 million for the fiscal years ended December 31, 2003 and 2004, 653 million for the fiscal year ended December 31, 2005 and 728 million for the fiscal year ended December 31, 2006 and 763 million for the fiscal year ended December 31, 2007. | |
(4) | In October 23, 2003, the Superintendency of Banking (now the Superintendency of Finance), through its External Circular 040 of 2003, modified the treatment of financial leases. Starting January 1, 2004, instead of recording financial leases as property, plant and equipment, companies must account for them in their loan portfolio. Additionally, according to this Circular, the assets given in financial lease contracts and recovered by the lessor because the purchase option is not exercised or because of the lessee’s failure to make payments are to be classified as foreclosed assets starting January 1, 2004. In the Bank’s annual report for fiscal year 2003, these assets were included in the line “Other assets”. The Bank did not reclassify these assets for fiscal year 2003. | |
(5) | The consolidated balance sheet for the year ended December 31, 2005, includes Conavi and Corfinsura’s results since the beginning of the year. | |
(6) | The consolidated statement of operations for the year ended December 31, 2007 includes Banagrícola’s results since the beginning of the year. | |
(7) | Includes interbank borrowing and domestic development banks borrowings and other. | |
(8) | These ratios are commonly presented in the Colombian market by financial institutions, and are included in the Bank’s presentation of results in Colombia. |
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As of and for the year ended December 31, | ||||||||||||||||||||
2003 | 2004 | 2005(11) | 2006 | 2007(12) | ||||||||||||||||
(Percentages, except for operating data) | ||||||||||||||||||||
SELECTED RATIOS:(1) | ||||||||||||||||||||
Colombian GAAP: | ||||||||||||||||||||
Profitability ratios: | ||||||||||||||||||||
Net interest margin(2) | 9.22 | 8.75 | 8.12 | 6.19 | 7.60 | |||||||||||||||
Return on average total assets(3) | 3.40 | 3.62 | 3.30 | 2.31 | 2.52 | |||||||||||||||
Return on average shareholders’ equity(4) | 31.14 | 32.14 | 31.49 | 22.10 | 26.13 | |||||||||||||||
Efficiency Ratio: | ||||||||||||||||||||
Operating expenses as a percentage of interest, fees, services and other operating income | 54.10 | 50.92 | 54.94 | 64.37 | 53.01 | |||||||||||||||
Capital ratios: | ||||||||||||||||||||
Period-end shareholders’ equity as a percentage of period-end total assets | 11.13 | 11.96 | 10.96 | 10.57 | 9.97 | |||||||||||||||
Period-end regulatory capital as a percentage of period-end risk- weighted assets(5) | 13.08 | 13.44 | 10.93 | 11.05 | 12.67 | |||||||||||||||
Credit quality data: | ||||||||||||||||||||
Non-performing loans as a percentage of total loans(6) (10) | 0.95 | 0.88 | 1.48 | 1.36 | 1.77 | |||||||||||||||
“C”, “D” and “E” loans as a percentage of total loans(9) (10) | 4.93 | 3.86 | 3.38 | 2.54 | 3.10 | |||||||||||||||
Allowance for loan and accrued interest losses as a percentage of non-performing loans (10) | 515.13 | 496.30 | 259.02 | 252.87 | 223.67 | |||||||||||||||
Allowance for loan and accrued interest losses as a percentage of “C”, “D” and “E” loans(9) (10) | 99.07 | 113.47 | 113.59 | 135.06 | 127.38 | |||||||||||||||
Allowance for loan and accrued interest losses as a percentage of total loans (10) | 4.89 | 4.37 | 3.84 | 3.43 | 3.95 | |||||||||||||||
OPERATING DATA: | ||||||||||||||||||||
Number of branches(7) | 354 | 377 | 678 | 701 | 888 | |||||||||||||||
Number of employees(8) | 8,001 | 8,609 | 14,562 | 16,222 | 24,836 |
(1) | Ratios were calculated on the basis of monthly averages. | |
(2) | Net interest income divided by average interest-earning assets. | |
(3) | Net income divided by average total assets. | |
(4) | Net income divided by average shareholders’ equity. | |
(5) | For an explanation of risk-weighted assets and Technical Capital, see Item 4. Information on the Company – B. Business Overview – B.7. Supervision and Regulation – Capital Adequacy Requirements. | |
(6) | Non-performing loans are small business loans that are past due 30 days or more, mortgage and consumer loans that are past due 60 days or more and commercial loans that are past due 90 days or more. (Each category includes financial leases). | |
(7) | Number of branches includes branches of the Bank’s Subsidiaries. | |
(8) | The number of employees includes employees of the Bank’s consolidated Subsidiaries. | |
(9) | See Item 4. Information on the Company – E. Selected Statistical Information – E.3. Loan Portfolio – Classification of the Loan Portfolio and Credit Categories for a description of “C”, “D” and “E” Loans. | |
(10) | In October 23, 2003, the Superintendency of Banking (now the Superintendency of Finance), through its External Circular 040, modified the treatment of financial leases. Since January 1, 2004, instead of recording financial leases as property, plant and equipment, companies must account for them in their loan portfolio. | |
(11) | Selected ratios for the year ended December 31, 2005, include Conavi and Corfinsura’s results since the beginning of the year. | |
(12) | Selected ratios include Banagrícola’s results since the beginning of the year. |
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Month | Low | High | ||||||
December 2007 | 1,987.81 | 2,057.40 | ||||||
January 2008 | 1,939.60 | 2,014.76 | ||||||
February 2008 | 1,843.59 | 1,939.77 | ||||||
March 2008 | 1,810.68 | 1,902.17 | ||||||
April 2008 | 1,765.30 | 1,834.96 | ||||||
May 2008 | 1,744.01 | 1,793.13 | ||||||
June 2008 (through June 27) | 1,652.41 | 1,832.81 |
Source: Superintendency of Finance. |
Peso/US$ 1.00 | ||||
Representative Market Rate | ||||
Period | Average | |||
2003 | 2,875.05 | |||
2004 | 2,614.79 | |||
2005 | 2,320,77 | |||
2006 | 2,359.13 | |||
2007 | 2,069.21 |
Source: | Superintendency of Finance. |
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• | net interest income; |
• | the volume of loans originated; |
• | the market value of the Bank’s securities holdings; |
• | asset quality; and |
• | gains from sales of loans and securities. |
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• | investing in securities of third parties; |
• | entering into derivative contracts under which counterparties have obligations to make payments to the Bank; and |
• | executing securities, futures, currency or commodity trades, from its proprietary trading desk, that fail to settle at the required time due to non-delivery by the counterparty or systems failure by clearing agents, exchanges, clearing houses or other financial intermediaries. |
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• | Ps 52,152 billion in total assets; |
• | Ps 36,245 billion in total net loans and financial leases; |
• | Ps 34,374 billion in total deposits; and |
• | Ps 5,199 billion in shareholders’ equity. |
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Capital Expenditures (Ps million) | 2005 | 2006 | 2007 | Total | ||||||||||||
Banagrícola S.A. | — | — | 1,776,310 | 1,776,310 | ||||||||||||
Inversiones Financieras Banco Agrícola, S.A. | — | — | 608,365 | 608,365 | ||||||||||||
Banco Agrícola S.A. | — | — | 94,384 | 94,384 | ||||||||||||
Compañía de Financiamiento Comercial Sufinanciamiento S.A. | — | 8 | 79,981 | 79,989 | ||||||||||||
Renting Colombia S.A. | 15,831 | — | 67,043 | 82,874 | ||||||||||||
Asesuisa Vida, S.A. | — | — | 11,947 | 11,947 | ||||||||||||
Suleasing Internacional | 5,711 | 8,685 | 6,446 | 20,842 | ||||||||||||
Sutecnología S.A. | 113 | 1,192 | 3,067 | 4,372 | ||||||||||||
Suramericana de Inversiones S.A. | 58,525 | — | 1,311 | 59,836 | ||||||||||||
Leasing Bancolombia S.A. | 74,609 | 30,999 | 1,157 | 106,765 | ||||||||||||
Fiduciaria Bancolombia S.A. | 5,317 | — | 31 | 5,348 | ||||||||||||
Factoring Bancolombia S.A. | — | 44,238 | 10 | 44,248 | ||||||||||||
Bancolombia Puerto Rico Internacional, Inc. | 23,613 | — | — | 23,613 | ||||||||||||
Multienlace S.A. | 6,318 | — | — | 6,318 | ||||||||||||
Protección S.A. | 12,464 | — | — | 12,464 | ||||||||||||
Redeban Multicolor S.A. | 2,198 | — | — | 2,198 | ||||||||||||
3001 S.A. | 19,382 | 14,551 | — | 33,933 | ||||||||||||
Valores Bancolombia S.A. | 33,135 | — | — | 33,135 | ||||||||||||
Titularizadora Colombiana S.A. | 11,161 | — | — | 11,161 | ||||||||||||
Inversiones CFNS Ltda. | 7,700 | — | — | 7,700 | ||||||||||||
Patrimonio Autonomo Autoamérica (Securitization) | 3,460 | — | — | 3,460 | ||||||||||||
Others | 1,819 | 7,469 | 3,860 | 13,147 | ||||||||||||
Total Expenditures | 281,356 | 107,142 | 2,653,912 | 3,042,409 |
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Divestitures (Ps million) | 2005 | 2006 | 2007 | Total | ||||||||||||
Almacenar S.A.(2) | — | — | 14,262 | 14,262 | ||||||||||||
IVL S.A.(2) | — | — | 9,542 | 9,542 | ||||||||||||
Sociedad Portuaria Regional de Buenaventura S.A.(2) | — | — | 4,917 | 4,917 | ||||||||||||
Terminal Marítimo Muelles El Bosque S.A.(2) | — | — | 3,320 | 3,320 | ||||||||||||
Bolsa de Valores de Colombia S.A.(2) | — | — | 2,261 | 2,261 | ||||||||||||
Abocol S.A.(2) | 27,863 | — | — | 27,863 | ||||||||||||
Carreteras Nacionales del Meta S.A.(2) | 106 | 5,509 | — | 5,615 | ||||||||||||
Fideicomiso Devinorte S.A.(2) | — | 5,277 | — | 5,277 | ||||||||||||
Venrepa C.A.(1) | — | 2,535 | — | 2,535 | ||||||||||||
3001 S.A.(3) | — | 34,873 | — | 34,873 | ||||||||||||
Suramericana de Inversiones S.A.(2) | — | 67,004 | — | 67,004 | ||||||||||||
Lab Investment & Logistics S.A.(2) | — | 17,704 | — | 17,704 | ||||||||||||
Others(1) (2) | 2,103 | 314 | 2,093 | 4,510 | ||||||||||||
Total Divestitures | 30,072 | 133,216 | 36,395 | 199,683 |
(1) | Investments Charged-off | |
(2) | Investments Sold | |
(3) | Settlement |
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Bancolombia’s | ||||||||||||
(unconsolidated) market share | As of December 2005(1) | As of December 2006 | As of December 2007 | |||||||||
Total net loans | 20.8 | % | 20.9 | % | 21.5 | % | ||||||
Total checking accounts | 19.5 | % | 20.9 | % | 21.6 | % | ||||||
Total savings accounts | 18.5 | % | 18.4 | % | 19.4 | % | ||||||
Total time deposits | 18.0 | % | 15.5 | % | 14.1 | % |
(1) | Including former Conavi and Corfinsura since 2005. | |
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(Ps million) | ||||||||||||||||||||||||||||||||||||
Governmental | ||||||||||||||||||||||||||||||||||||
Small | and | Offshore | ||||||||||||||||||||||||||||||||||
Retail | Commercial | Business | Institutional | Commercial | All other | |||||||||||||||||||||||||||||||
Banking | Banking | Banking | Banking | Treasury | Banking | Leasing | Segments | Total | ||||||||||||||||||||||||||||
Revenues from external customers | Ps | 474,916 | Ps | 32,652 | Ps | 50,724 | Ps | 15,092 | Ps | — | Ps | 12,618 | Ps | 308,027 | Ps | 233,075 | Ps | 1,127,104 | ||||||||||||||||||
Revenues and expenses from transactions with other operating segments of the Bank | 76,998 | 145,022 | 161,358 | 27,850 | — | 10,604 | 6,654 | (391,454 | ) | 37,032 | ||||||||||||||||||||||||||
Interest income | 1,059,092 | 379,434 | 375,839 | 82,570 | 828,418 | 178,409 | 67,845 | 131,903 | 3,103,510 | |||||||||||||||||||||||||||
Provision for loans losses | Ps | 77,229 | Ps | 3,497 | Ps | 13,338 | Ps | 1,913 | Ps | 27,560 | Ps | 28,538 | Ps | 19,459 | Ps | 20,588 | Ps | 192,122 |
(Ps million) | ||||||||||||||||||||||||||||||||||||
Governmental | ||||||||||||||||||||||||||||||||||||
Small | and | Offshore | ||||||||||||||||||||||||||||||||||
Retail | Commercial | Business | Institutional | Commercial | All other | |||||||||||||||||||||||||||||||
Banking | Banking | Banking | Banking | Treasury | Banking | Leasing | Segments | Total | ||||||||||||||||||||||||||||
Revenues from external customers | Ps | 428,531 | Ps | 134,992 | Ps | 117,282 | Ps | 36,377 | Ps | — | Ps | 130 | Ps | 38,515 | Ps | 222,699 | Ps | 978,526 | ||||||||||||||||||
Revenues and expenses from transactions with other operating segments of the Bank | 69,727 | 297,645 | 92,006 | 54,498 | — | 12,493 | 12,691 | (379,957 | ) | 159,103 | ||||||||||||||||||||||||||
Interest income | 820,398 | 756,876 | 387,043 | 172,830 | 400,053 | 495,222 | 437,977 | 147,004 | 3,617,403 | |||||||||||||||||||||||||||
Provision for loans losses | Ps | 86,327 | Ps | (7,179 | ) | Ps | 37,829 | Ps | (37,106 | ) | Ps | (30,134 | ) | Ps | 13,316 | Ps | 51,741 | Ps | 87,978 | Ps | 202,772 |
(Ps million) | ||||||||||||||||||||||||||||||||||||
Small | Governmental | Offshore | ||||||||||||||||||||||||||||||||||
Retail | Commercial | Business | and Institutional | Commercial | All other | |||||||||||||||||||||||||||||||
Banking | Banking | Banking | Banking | Treasury | Banking | Leasing | Segments | Total | ||||||||||||||||||||||||||||
Revenues from external customers | Ps | 628,460 | Ps | 135,214 | Ps | 173,465 | Ps | 44,277 | Ps | (2,302 | ) | Ps | 11,858 | Ps | 84,086 | Ps | 261,691 | Ps | 1,336,749 | |||||||||||||||||
Revenues and expenses from transactions with other operating segments of the Bank | (10,844 | ) | 25,309 | — | — | 10,655 | 148,783 | 1,345 | 317,738 | 492,986 | ||||||||||||||||||||||||||
Interest income | 1,412,878 | 1,200,566 | 606,788 | 235,607 | 578,651 | 299,067 | 624,606 | 303,279 | 5,261,442 | |||||||||||||||||||||||||||
Provision for loans losses | Ps | 267,022 | Ps | 164,440 | Ps | 154,554 | Ps | 23,326 | Ps | (14,634 | ) | Ps | 19,271 | Ps | 108,538 | Ps | 26,111 | Ps | 748,628 |
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As of December 31, | ||||||||||||||||||||||||
2005 | 2006 | 2007 | ||||||||||||||||||||||
(Ps million) | ||||||||||||||||||||||||
Long | Long | Long | ||||||||||||||||||||||
Term - | Term - | Term - | ||||||||||||||||||||||
Revenues | Assets(3) | Revenues | Asset(3) | Revenues | Assets(3) | |||||||||||||||||||
Geographic Information | ||||||||||||||||||||||||
Colombia | Ps | 3,990,600 | Ps | 734,419 | Ps | 3,801,365 | Ps | 878,917 | Ps | 5,507,174 | Ps | 1,202,108 | ||||||||||||
Panama and Cayman Islands | 202,018 | 29,810 | 512,629 | 12,285 | 515,749 | 10,242 | ||||||||||||||||||
Puerto Rico | 42,897 | 131 | 37,171 | 141 | 51,765 | 164 | ||||||||||||||||||
Perú(2) | — | — | — | — | 357 | 6,706 | ||||||||||||||||||
El Salvador | 774,026 | 143,658 | ||||||||||||||||||||||
USA(1) | 11,965 | 326 | 31,630 | 928 | 48,010 | 115 | ||||||||||||||||||
Total | 4,247,480 | 764,686 | 4,382,795 | 892,271 | 6,897,081 | 1,362,993 | ||||||||||||||||||
Eliminations of intersegment operations | (37,032 | ) | 7,144 | (159,103 | ) | (13 | ) | (492,986 | ) | 11 | ||||||||||||||
Total, net | Ps | 4,210,448 | Ps | 771,830 | Ps | 4,223,692 | Ps | 892,258 | Ps | 6,404,095 | Ps | 1,363,004 | ||||||||||||
(1) | Information relating to Bancolombia Miami Agency is included since 2004, because it started operations at the end of 2003. Additionally the figures for the year 2005 include Suleasing Internacional Inc as a result of the Conavi/Corfinsura merger. | |
(2) | Renting Perú information is included since 2007, because it started operations at the end of 2006. | |
(3) | Included foreclosed assets, net, allowances for foreclosed assets and property, plant and equipment, net. |
2005 | 2006 | 2007 | ||||||||||
(Ps million) | ||||||||||||
Revenues | ||||||||||||
Revenues for reportable segments(1) | Ps | 4,267,646 | Ps | 4,755,032 | Ps | 7,091,177 | ||||||
Non-operating income(2) | (20,166 | ) | (372,237 | ) | (194,096 | ) | ||||||
Elimination of intersegment revenues | (37,032 | ) | (159,103 | ) | (492,986 | ) | ||||||
Total revenues for reportable segments(3) | Ps | 4,210,448 | Ps | 4,223,692 | Ps | 6,404,095 | ||||||
(1) | Total revenues for reportable segments includes Revenues from external customers and revenues and expenses from transactions with other operating segments of the same enterprise and interest income. | |
(2) | Non-operating income represents other income classified as revenue for segment reporting purposes. | |
(3) | Total revenues for reportable segments include interest, fees, other services and other operating income. |
For the years | Growth | |||||||||||||||
2005 | 2006 | 2007 | 2007/2006 | |||||||||||||
(Ps million) | ||||||||||||||||
Main fees and commissions | ||||||||||||||||
Commissions from banking services | Ps | 101,355 | Ps | 162,273 | Ps | 324,352 | 99.88 | % | ||||||||
Electronic services and ATMs fees | 101,299 | 85,049 | 80,711 | (5.10 | %) | |||||||||||
Branch network services | 48,984 | 62,403 | 104,601 | 67.62 | % | |||||||||||
Collections and payments fees | 56,670 | 74,708 | 130,421 | 74.57 | % | |||||||||||
Credit card merchant fees | 10,076 | 8,150 | 39,191 | 380.87 | % | |||||||||||
Credit and debit card annual fees | 205,606 | 238,898 | 258,937 | 8.39 | % | |||||||||||
Checking fees | 54,846 | 60,083 | 67,438 | 12.24 | % | |||||||||||
Warehouse services | 62,155 | 72,494 | — | — | ||||||||||||
Fiduciary activities | 60,131 | 62,114 | 69,200 | 11.41 | % | |||||||||||
Pension plan administration | — | — | 82,453 | — | ||||||||||||
Brokerage fees | 68,231 | 67,034 | 62,493 | (6.77 | %) | |||||||||||
Check remittance | 10,579 | 11,040 | 22,762 | 106.18 | % | |||||||||||
International operations | 36,484 | 34,281 | 43,643 | 27.31 | % | |||||||||||
Fees and other service expenses | (48,087 | ) | (70,866 | ) | (116,453 | ) | 64.33 | % | ||||||||
Total fees and income from services, net | Ps | 768,329 | Ps | 867,661 | Ps | 1,169,749 | 34.82 | % | ||||||||
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• | Investment Banking. Banca de Inversión Bancolombia S.A. specializes in providing investment banking services to corporate customers in areas such as mergers and acquisitions, project finance, issuances of debt and equity securities and syndicated loan transactions. |
• | Construction Banking. This segment provides services to the construction industry. Construction customers are segmented by the number of construction projects they own. |
• | Brokerage and Asset Management. Valores Bancolombia S.A. is a subsidiary of the Bank that provides brokerage and asset management services. It provides its customers with domestic and international investment alternatives. | ||
In El Salvador, Bursabac S.A. de C.V. provides brokerage services for securities that include notes issued byBanco Central de Reserva(El Salvador’s Central Bank), government bonds, Euro bonds, repurchase agreements, securities, and bank and corporate debt securities known asCertificados de Inversion. Bursabac S.A. de C.V. brokerage services also include the trading of foreign debt securities and international securities listed in the Salvadorian Stock Exchange. |
• | Manufacturing Segment. The manufacturing segment of the Bank provides a wide range of products to individuals and companies in diverse sectors such as metal parts in gray and ductile iron, both wrought and finished, such as brake systems for automobiles and trucks, accessories for aqueducts and agriculture machinery. |
• | Trust, Pension Fund and Insurance. The Bank offers, through its Subsidiary Fiduciaria Bancolombia S.A., five mutual funds and one voluntary retirement fund, all of which are designed to provide customers with the opportunity to diversify their investments. | ||
Through its branch network, Banco Agrícola offers various insurance products (life insurance and educational) from Aseguradora Suiza Salvadoreña S.A. (“Asesuisa”). Banco Agrícola was the first bank in El Salvador to enter the Bancassurance line of business. | |||
Asesuisa offers insurance products for individuals and corporations, covering a wide range of risks and exposures. | |||
AFP Crecer S.A. is a pension fund manager that manages both voluntary and mandatory contributions through individual savings accounts for the elderly, common disability and surviving pensions, as established under the SAP. The SAP and other regulations issued by the Superintendency of Pensions of El Salvador regulate the products and services that AFP Crecer S.A. provides. |
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Company | Number of branches | |||
Bancolombia (unconsolidated) | 719 | |||
Bancolombia Panamá | 1 | |||
Leasing Bancolombia | 10 | |||
Renting Colombia | 4 | |||
Valores Bancolombia | 7 | |||
Suvalor Panamá | 1 | |||
Banca de Inversión Bancolombia | 2 | |||
Fiduciaria Bancolombia | 6 | |||
Bancolombia Puerto Rico | 1 | |||
Multienlace | 2 | |||
Factoring Bancolombia | 5 | |||
Sufinanciamiento | 6 | |||
Renting Perú S.A.C | 1 | |||
Tempo Rent a Car | 5 | |||
Inversiones CFNS | 1 | |||
Banco Agrícola | 107 | |||
Arrendadora Financiera S.A. | 1 | |||
Bursabac S.A. de C.V | 1 | |||
AFP Crecer S.A. | 6 | |||
Aseguradora Suiza Salvadoreña S.A. | 1 | |||
Asesuisa Vida S.A. | 1 | |||
Total | 888 | |||
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• | e-Pagos, a button through which only the Bank’s customers can make purchases and payments via the internet. |
• | Electronic Services Supplier (Proveedor de Servicios Electrónicos, or “PSE”), a centralized, standardized system, developed by ACH Colombia S.A. (“ACH”) through which companies may allow their users to purchase and pay for items over the internet, debiting the corresponding amounts from the financial institution where the users have their account and transferring these amounts to the payee accounts. This button accepts payments and purchases from customers pertaining to all banks (including BC) that form part of the ACH network. |
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• | Personal Loans:Unrestricted loans that can be used for any purpose with short and mid-term financing for individuals. |
• | Payroll Loans:The Bank offers employees of companies that have an agreement with the Bank an unrestricted loan that can be used for any purpose. |
• | Educational Loan (“Crediestudio”):Through this loan the Bank finances undergraduate and graduate students at preferential rates. |
• | Virtual Loan (“AudioPréstamo”):The Bank offers its individual customers a revolving line of credit. Disbursements are carried out in real time and the corresponding amounts are deposited in the customers’ primary account or in the account of a third party who has previously registered through the Internet, Contact Center or Electronics Points of Service. |
• | Micro-Business Loan (“Microcrédito”): The Bank offers this type of loan through the Entrepreneurial segment. It is especially designed to finance this segment’s working capital or investment needs with an automatic guarantee of 50% of the loan by the FNG “Fondo Nacional de Garantías”. |
• | Overdrafts in Checking Accounts:This is a service whereby individuals are entitled to issue checks, carry out online transactions and purchase products and services at any establishment accepting MasterCard, both in Colombia and abroad, without necessarily having the corresponding funds in their checking accounts. |
• | Vehicle Loan (“VehiPréstamo”):With this loan the Bank finances the purchase of vehicles for private or commercial use (excluding public transportation vehicles). |
• | Executive Loan (“Ejecutivo Empresarial”):A loan with preferential rates, aimed at satisfying the financing needs of employees who work in companies that are Bank’s customers. |
• | Ordinary Loan Portfolio:These loans are granted to SMEs based on the assets maintained in their checking accounts, savings accounts and time deposits. BC’s unconsolidated ordinary loan portfolio also extends to certain special lines such as: |
• | Environmental Line of Credit. |
• | Business Development Line. |
• | Industrial Modernization Line. |
• | Standard Implementation Credit for Businesses (Norma Técnica Colombiana or “NTC” and International Organization for Standardization or “ISO”. |
• | Severance Line of Credit Treasury Loans:A line of credit that seeks to satisfy customers’ working capital needs generated by temporary liquidity shortage and tax payments. |
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• | Loans funded by Colombian development banks: |
• | BANCOLDEX (Banco de Comercio Exterior de Colombia): A line of credit for financing export and import activities. |
• | FINAGRO (Fondo para el Financiamiento del Sector Agropecuario): A line of credit for financing the different phases in goods production, commercialization and/or transformation processes directly from, connected to, or complementary to farming and livestock, forestry, fishing, water, poultry and beekeeping industry activities. |
• | FINDETER (Financiera de Desarrollo Territorial): A line of credit that, with credit resources, seeks to support the execution of programs, projects or investments that generate local, regional or national development. |
As a % | As a % | |||||||||||||||||||||||||||
of total | of total | |||||||||||||||||||||||||||
As of | As of | As of | loan | loan | Past due/ | |||||||||||||||||||||||
December | December | December 31, | portfolio | portfolio | Past due | total | ||||||||||||||||||||||
Loans(1) | 31, 2005 | 31, 2006 | 2007 | 2006 | 2007 | loans 2007 | type of loan | |||||||||||||||||||||
(Ps million except percentages) | ||||||||||||||||||||||||||||
Credit cards | Ps | 582,533 | Ps | 796,175 | Ps | 2,020,611 | 3.2 | % | 5.4 | % | Ps | 151,522 | 7.5 | % | ||||||||||||||
Personal loans | 1,556,429 | 2,281,177 | 3,778,558 | 9.3 | % | 10.0 | % | 168,693 | 4.5 | % | ||||||||||||||||||
Vehicle loans | 629,326 | 963,072 | 1,312,396 | 3.9 | % | 3.5 | % | 74,495 | 5.7 | % | ||||||||||||||||||
Overdrafts | 101,957 | 119,882 | 218,006 | 0.5 | % | 0.6 | % | 28,253 | 13.0 | % | ||||||||||||||||||
Loans funded by domestic development banks | 403,414 | 386,283 | 719,211 | 1.6 | % | 1.9 | % | 21,264 | 3.0 | % | ||||||||||||||||||
Trade financing | 76,643 | 70,406 | 97,978 | 0.3 | % | 0.3 | % | 3,404 | 3.5 | % | ||||||||||||||||||
Working capital loans | 1,612,650 | 2,331,999 | 3,729,344 | 9.5 | % | 9.9 | % | 140,842 | 3.8 | % | ||||||||||||||||||
Total retail | Ps | 4,962,952 | Ps | 6,948,994 | Ps | 11,876,104 | 28.3 | % | 31.6 | % | Ps | 588,473 | 5.0 | % | ||||||||||||||
(1) | Includes loans to high-income individuals and SMEs. |
Ps 173.2 billion of its loan portfolio in UVRs for a total of Ps 729.1 billion in 2007.
• | Homeowner Loan:This is a line of credit that can be used for purchasing new or existing property that may be taken either at a fixed interest rate for the entire term of the loan or at a UVR linked interest rate which is based on the inflation rate. |
• | Real Estate Other Than Housing Loans:This is a UVR-linked line of credit that can be used for acquiring property other than housing that benefits both individuals and entities from all segments. |
• | Low-Income Housing (VIS) Remodeling Loan:This is a UVR-linked line of credit used for remodeling low-income housing (valued at less than the equivalent of 135 SMMLV. |
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• | Housing Construction Loan for Individuals:This UVR-linked line of credit is available to individuals that would like to build their own housing. |
• | Real Estate Construction Loans Other Than Housing:This is a UVR-linked line of credit for building property other than housing, for the benefit of both individuals and entities from all banking segments. |
• | Short-term Housing Loans:This line of credit is for financing the purchase or remodeling of housing for terms less than 60 months, with possibilities of paying interest based on either a DTF-linked or a fixed rate of interest. |
BC has a wide range of products to satisfy the capital needs of its Corporate Banking customers which include the following: | |||
• | Working capital loans:This type of loan is the most common in the corporate market. These loans are mainly variable rate or based on Time Deposit rates, and are re-priced every quarter. |
• | Trade financing loans:This type pf loan is typically U.S. dollar-denominated with variable interest rate. Due to regulatory restrictions, this type of loan has maturities of six months or less, whereas some capital assets are financed for up to three years. |
• | Loans funded by Colombian development banks:This type of loan has a variable interest rate, based on Time Deposit rates or LIBOR with maturities between six months and five years. |
• | Treasury Loans:This is a short- term loan designed to finance working capital needs. These loans have a variable interest rate. Additionally, it is a line of credit that seeks to satisfy customers’ working capital needs generated by temporary liquidity needs and tax payments. |
As a % of | As a % of | |||||||||||||||||||||||||||
total | total | |||||||||||||||||||||||||||
As of | As of | As of | loan | loan | Past due/ | |||||||||||||||||||||||
December 31, | December 31, | December 31, | portfolio | portfolio | Past due | total | ||||||||||||||||||||||
2005 | 2006 | 2007 | 2006 | 2007 | loans 2007 | type of loan | ||||||||||||||||||||||
(Ps million except percentages) | ||||||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||
Trade financing | Ps | 783,894 | Ps | 777,417 | Ps | 1,159,546 | 3.2 | % | 3.1 | % | Ps | 14,171 | 1.2 | % | ||||||||||||||
Loans funded by domestic development banks | 948,659 | 321,263 | 882,715 | 1.3 | % | 2.3 | % | 7,842 | 0.9 | % | ||||||||||||||||||
Working capital loans | 7,702,420 | 11,534,148 | 16,099,499 | 46.8 | % | 42.7 | % | 166,135 | 1.0 | % | ||||||||||||||||||
Credit cards | 42,293 | 50,803 | 43,159 | 0.2 | % | 0.1 | % | 507 | 1.2 | % | ||||||||||||||||||
Overdrafts | 62,041 | 74,218 | 59,146 | 0.3 | % | 0.2 | % | 1,972 | 3.3 | % | ||||||||||||||||||
Total corporate | Ps | 9,539,307 | Ps | 12,757,849 | Ps | 18,244,065 | 51.8 | % | 48.4 | % | Ps | 190,627 | 1.0 | % | ||||||||||||||
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• | Constructor Loans:This line of credit facilitates the building and commercialization of construction projects. The project cash flows are managed allowing the constructor access to the necessary funds as the project advances. |
• | Loans For Pre-operative Expense:This is a line of credit offered to professional constructors for the purpose of facilitating investments required prior to developing a housing project. |
• | Property Leasing:Financing alternative for new and existing property or property being built, without having to assign working capital for this purpose. The customer selects the property desired, Leasing Bancolombia acquires it and it is leased to the customer for the time originally agreed upon. Once the contract expires, the customer is entitled to acquire the property for a percentage of its initial value, which is agreed upon at the outset in the form of a purchase option. |
• | Pre-sales Trust Management services:This is an arrangement whereby the constructor signs a trust management agreement with the Trust Company, Fiduciaria Bancolombia, which acts as trustee protecting the interests of the parties participating in the construction project (option-holders). Once the conditions agreed upon in the trust agreement (break-even points) are met, the funds received in trust are disbursed to the property developer, or any other party responsible for developing the project, as stipulated in the respective agreement. |
• | Complete Property trust services:In order to provide the utmost transparency and professional management of project funds, the constructor sets up a separate, self-standing fund by entering into a commercial trust contract for the plot of land, the initial installments, the credit disbursements requested by the constructor and all the other funds that are required for completing each stage of the project. |
• | Cash Management trust services:When Fiduciaria Bancolombia signs a commercial trust contract with the constructor of a project, Fiduciaria Bancolombia proceeds to manage all or part of the funds pertaining to the property development project so as to manage these exclusively on behalf of the constructor toward the actual execution of the project. |
• | Construction Project Management and Payment trust services:This is a type of trust arrangement for constructor offering an efficient management and administrative capacity for their projects. |
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low-income housing. (Decree 975/ 2004. Article 2).
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• | Bancolombia Maestro Debit Cards: 4,496,757 outstanding cards; |
• | Bancolombia MasterCard Debit Cards: 191,202 outstanding cards; |
• | Bancolombia Prepaid Debit Cards: 86,962 outstanding prepaid debit cards (these are debit cards not associated with any savings account and are used for payments such as payroll, bonuses and prizes). |
• | Visa, MasterCard and American Express payer business:At December 31, 2007, BC had a total of 26,546 affiliated commercial establishments. |
• | Acquiring Business — American Express:As of December 31, 2007, this franchise had an aggregate amount of 73,683 affiliated establishments, registering an 18.46% growth compared to the prior year. |
Increase | ||||||||||||
(As of December 31, 2007 - in Ps million) | 2006 | 2007 | 2006/2007 | |||||||||
Master Card | Ps | 1,565,211 | Ps | 1,945,680 | 24 | % | ||||||
Visa | 1,062,085 | 1,480,725 | 39 | % | ||||||||
American Express | 649,902 | 1,007,659 | 55 | % | ||||||||
Total Bancolombia | Ps | 3,277,198 | Ps | 4,434,064 | 35 | % | ||||||
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US$ 1.7 billion.
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• | Inter-banking:These are operations in which BC lends or borrows funds in pesos or U.S. dollars to or from financial institutions on a short-term basis (30 days), without receipt or delivery of a guarantee in exchange. |
• | Repurchase Agreements or “Repos”:In repo transactions, BC lends or borrows funds in pesos or U.S. dollars for a short-term (maximum 30 days) to or from financial or non-financial institutions, in exchange for a guarantee. |
• | Financial Leases:With this product, Leasing Bancolombia allows customers to lease predetermined assets, with the option of purchasing them once the lease agreement expires. The financial leasing arrangements offered include import leasing, real estate leasing, infrastructure leasing, vehicle leasing for corporate executives, cattle leasing. |
• | Residential Leasing:Allows customers to choose a house or apartment, that may be new, existing, being designed or under construction for long term financing with the option to purchase said property at the end of the lease. |
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• | Operating Leases:Leasing Bancolombia provides leased assets, usually equipment, for fixed terms that are shorter than the asset’s useful life. Once the lease ends, the customer has the option of acquiring the assets at their commercial value, or return them to Leasing Bancolombia, who then proceeds to sell these assets. |
• | Company Car: A full service renting product for company executives. |
• | Lease-back arrangements: Renting Colombia purchases the transport fleet from the customer and leases it back to the customer. |
• | Used vehicle sales: Sale of vehicles returned by customers once the renting contract expires. |
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• | Personal Loans:Unrestricted loans that can be used for any purpose with short and mid-term financing for individuals. |
• | Payroll Loans:Banco Agrícola offers employees of companies that have an agreement with Banco Agrícola an unrestricted loan that can be used for any purpose. |
• | Overdrafts in Checking Accounts:Allows individuals to issue checks, purchase products and services at any establishment, without necessarily having the corresponding funds in their checking accounts. |
• | Home Equity Loan:This is a line of credit that can be used to consolidate debt and is guaranteed by a mortgage on the customer’s home. |
As a % of total | ||||||||||||||||
loan portfolio | Past due loans | Past due/ total | ||||||||||||||
2007 | 2007 | 2007 | type of loan | |||||||||||||
(Ps million, except percentages) | ||||||||||||||||
Retail | ||||||||||||||||
Credit cards | Ps | 11,917 | 0.0 | % | Ps | 409 | 3.4 | % | ||||||||
Personal loans | 1,468,721 | 3.9 | % | 39,739 | 2.7 | % | ||||||||||
Vehicle loans | 6,699 | 0.0 | % | 111 | 1.7 | % | ||||||||||
Overdrafts | 22,943 | 0.1 | % | 321 | 1.4 | % | ||||||||||
Loans funded by domestic development banks | 6,204 | 0.0 | % | 96 | 1.5 | % | ||||||||||
Trade financing | 4,941 | 0.0 | % | 191 | 3.9 | % | ||||||||||
Working capital loans | 13,399 | 0.0 | % | 1,535 | 11.5 | % | ||||||||||
Total retail | Ps | 1,534,824 | 4.0 | % | Ps | 42,402 | 2.8 | % | ||||||||
• | Working capital loans:Is the most common type of loan in the Salvadorian corporate market. These loans have variable interest rates that can be repriced monthly. |
• | Trade financing loans:are loans typically U.S. dollar-denominated with variable interest rates. |
• | Treasury Loans:This is a short-term loan designed to finance working capital needs. These loans have a variable interest rate. |
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As a % of total | ||||||||||||||||
loan portfolio | Past due loans | Past due/ total | ||||||||||||||
2007 | 2007 | 2007 | type of loan | |||||||||||||
(Ps million, except percentages) | ||||||||||||||||
Corporate | ||||||||||||||||
Trade financing | Ps | 279,510 | 0.7 | % | Ps | 5,098 | 1.8 | % | ||||||||
Loans funded by domestic development banks | 39,758 | 0.1 | % | 1,132 | 2.8 | % | ||||||||||
Working capital loans | 2,133,961 | 5.7 | % | 58,541 | 2.7 | % | ||||||||||
Credit cards | 2,211 | 0.0 | % | 0 | 0.0 | % | ||||||||||
Overdrafts | 8,611 | 0.0 | % | 137 | 1.6 | % | ||||||||||
Total corporate | Ps | 2,464,051 | 6.5 | % | Ps | 64,908 | 2.6 | % | ||||||||
• | Credit Cards:As of December 31, 2007, Banco Agrícola had a total of 126,925 outstanding credit cards, including both personal as well as corporate cards. |
• | Debit Cards:As of December 31, 2007, Banco Agrícola had an aggregate amount of 598,995 debit cards of Banco Agrícola, brand (Chequemax). |
• | International Remittances:Banco Agrícola has become one of the leading banks in the family remittance market. In 2007, Banco Agrícola’s strategy to extend banking services to a broader range of customers has allowed Banco Agrícola to offer highly attractive services to Salvadorians living abroad and to their respective families in El Salvador. |
• | Bancassurance — (Life/educational):Through its branch network, Banco Agrícola offers various insurance products (life insurance and educational) from Asesuisa a subsidiary of Banagrícola. Banco Agrícola was the first bank in El Salvador to enter the Bancassurance line of business. |
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• | Life and Health intended to cover death, disability, and health for individuals and groups. |
• | Individual Life:An insurance contract that covers the insured’s beneficiaries in case of death. There are two main products:term lifewhich covers the insured’s life during a period of time, andpermanent lifewhich offers benefits such as savings and investments in addition to life insurance. | ||
• | Group Life:Offers life insurance to groups of people who have a common interest such as being members of the same institution as employees, students, debtors or others. | ||
• | Personal Accidents and Health:Provides coverage for health treatments and procedures as well as death coverage in case of accidents or natural causes. | ||
• | Life Bancassurance:Utilizes banking agencies and personnel as a distribution channel for insurance products. | ||
• | Death and Disability for Pensions Funds:A group life insurance that supplements the amount of funds needed to pay future pensions to beneficiaries in case of death or disability of the insured. |
• | Property and Casualty that covers material damages and/or liabilities: |
• | Fire and associated Perils:Covers damages to property caused by external causes and events such as fire, natural disasters and others. | ||
• | Auto Insurance:Covers damages to vehicles as a consequence of accidents, theft, or other causes that reduce or destroy their value. | ||
• | Cargo:Cover losses to merchandise and other goods during their transportation by sea, land or air. | ||
• | Miscellaneous Products:A wide rage of products designed to cover different risks and liabilities such as theft of goods, money and valuables, damages to machinery and electronic equipments, constructions process, third party liabilities; among other products. |
• | Bonds: Guarantees to third parties the proper performance and compliance obligations and responsibilities arising from contracts executed by our customers. |
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Past due loan/ | Allowances/ | |||||||||||||||||||||||||||||||||||||||
ROE | ROA | Total loans | Past due loans | Capital Adequacy | ||||||||||||||||||||||||||||||||||||
Dec-06 | Dec-07 | Dec-06 | Dec-07 | Dec-06 | Dec-07 | Dec-06 | Dec-07 | Dec-06 | Dec-07 | |||||||||||||||||||||||||||||||
Bancolombia (unconsolidated) | 17.2 | % | 15.9 | % | 2.2 | % | 2.4 | % | 1.87 | % | 2.39 | % | 191.12 | % | 169.57 | % | 11.6 | % | 17.4 | % | ||||||||||||||||||||
Banco de Bogota | 13.9 | % | 19.1 | % | 1.9 | % | 2.3 | % | 1.83 | % | 2.25 | % | 185.27 | % | 152.90 | % | 12.6 | % | 10.0 | % | ||||||||||||||||||||
Banco de Occidente | 16.4 | % | 18.8 | % | 2.1 | % | 2.2 | % | 2.18 | % | 2.75 | % | 186.85 | % | 160.98 | % | 9.8 | % | 11.6 | % | ||||||||||||||||||||
BBVA | 19.1 | % | 21.2 | % | 1.8 | % | 1.8 | % | 2.58 | % | 2.49 | % | 213.09 | % | 161.41 | % | 14.0 | % | 10.9 | % | ||||||||||||||||||||
Citibank | 11.1 | % | 13.9 | % | 1.5 | % | 2.2 | % | 2.35 | % | 4.33 | % | 145.86 | % | 109.82 | % | 12.3 | % | 12.8 | % | ||||||||||||||||||||
Davivienda | 16.3 | % | 27.3 | % | 1.7 | % | 2.7 | % | 4.13 | % | 4.15 | % | 143.80 | % | 144.72 | % | 11.4 | % | 12.0 | % | ||||||||||||||||||||
Banco Popular | 22.4 | % | 24.2 | % | 2.5 | % | 2.3 | % | 2.27 | % | 2.24 | % | 211.59 | % | 197.09 | % | 13.2 | % | 9.8 | % |
Market Share
Total Net Loans - Market | ||||||||||||
Share % | 2005 | 2006 | 2007 | |||||||||
Bancolombia | 20.86 | 20.30 | 21.51 | |||||||||
Bogotá | 10.06 | 13.97 | 13.83 | |||||||||
Occidente | 6.14 | 6.60 | 6.75 | |||||||||
Citibank | 3.77 | 4.38 | 4.24 | |||||||||
BBVA | 8.10 | 10.80 | 11.20 | |||||||||
Davivienda | 5.55 | 9.08 | 12.37 | |||||||||
Popular | 5.37 | 4.77 | 4.94 |
Market Share
Checking Accounts - Market | ||||||||||||
Share % | 2005 | 2006 | 2007 | |||||||||
Bancolombia | 19.04 | 21.03 | 22.30 | |||||||||
Bogotá | 16.28 | 17.03 | 17.20 | |||||||||
Occidente | 11.19 | 12.77 | 13.50 | |||||||||
Citibank | 3.05 | 3.26 | 2.79 | |||||||||
BBVA | 9.56 | 9.64 | 9.71 | |||||||||
Davivienda | 2.72 | 6.12 | 10.29 | |||||||||
Popular | 6.23 | 5.57 | 5.60 |
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Market Share
Time Deposits - Market | ||||||||||||
Share % | 2005 | 2006 | 2007 | |||||||||
Bancolombia | 14.61 | 13.75 | 14.27 | |||||||||
Bogotá | 5.67 | 9.65 | 11.58 | |||||||||
Occidente | 3.36 | 3.10 | 3.87 | |||||||||
Citibank | 3.44 | 5.62 | 6.15 | |||||||||
BBVA | 7.84 | 10.97 | 11.15 | |||||||||
Davivienda | 6.63 | 12.80 | 14.95 | |||||||||
Popular | 2.73 | 2.91 | 3.43 |
Market Share
Saving Accounts - Market | ||||||||||||
Share % | 2005 | 2006 | 2007 | |||||||||
Bancolombia | 18.58 | 20.06 | 19.68 | |||||||||
Bogotá | 11.31 | 12.82 | 13.29 | |||||||||
Occidente | 6.41 | 6.18 | 6.39 | |||||||||
Citibank | 2.45 | 3.39 | 3.29 | |||||||||
BBVA | 8.33 | 12.85 | 13.53 | |||||||||
Davivienda | 8.77 | 10.67 | 13.58 | |||||||||
Popular | 8.42 | 6.93 | 6.85 |
MARKET SHARE | ||||||||||||||||
Assets | Shareholder’s Equity | Loans | Deposits | |||||||||||||
Banco Agrícola | 28 | % | 28 | % | 28 | % | 28 | % | ||||||||
Cuscatlan | 25 | % | 25 | % | 25 | % | 25 | % | ||||||||
HSBC | 17 | % | 17 | % | 17 | % | 17 | % | ||||||||
Scotiabank | 15 | % | 16 | % | 16 | % | 15 | % | ||||||||
BAC | 6 | % | 5 | % | 6 | % | 6 | % | ||||||||
Others | 9 | % | 9 | % | 8 | % | 9 | % |
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• | The Central Bank exercises the customary functions of a central bank, including price stabilization, legal currency issuance, regulation of currency circulation, credit and exchange rate monitoring and administration of international reserves. Its board of directors is the regulatory authority for monetary, currency exchange and credit policies, and is responsible for the direction and execution of the Central Bank’s duties. The Central Bank also acts as a last resort lender to financial institutions. |
• | Pursuant to the Colombian Constitution of 1991, the Central Bank has autonomy from the government in the formulation of monetary policy and for administrative matters. Specifically, the Constitution of 1991 established administrative, technical, budgetary and legal autonomy for the Central Bank and its board of directors in respect of monetary, credit and foreign exchange matters. The Central Bank reports only to the National Congress. Its board of directors has seven members, one of whom is the Minister of Finance and Public Credit. |
• | This Ministry designs, coordinates, regulates and executes economic policy, guaranteeing an optimum administration of public finances for the economic and social development of the country. |
• | One of the functions of the Ministry of Finance is to intervene in all aspects of finance, securities and insurance activities. It is also responsible for inspecting, supervising and controlling all those entities engaged in such activities, specifically through the Superintendency of Finance. |
• | As part of its duties, the Ministry of Finance issues decrees and regulations related mainly, to financial, taxation, customs, public credit and budgetary matters that may affect banking operations in Colombia. |
• | The Superintendency of Finance was created as a result of the merger between the Superintendency of Banking and the Superintendency of Securities through Decree 4327 issued by the President of the Republic of Colombia, in November 2005. |
• | All the responsibilities and attributions of the former Superintendency of Banking and Superintendency of Securities set fort in Decree 663 of 1993, as amended, Decree 2739 of 1991, as amended, and Law 964 of 2005, were assigned to the newly created Superintendency of Finance. |
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• | The Superintendency of Finance is a technical branch of the Ministry of Finance that acts as the inspection, supervision and control authority of the financial, insurance and securities exchange sectors and any other activities related to the investment or management of the public’s savings. The Superintendency of Finance has been entrusted with the objective of supervising the Colombian financial system with the purpose of preserving its stability and trustworthiness, as well as promoting, organizing and developing the Colombian securities market and protecting the users of financial and insurance services and investors. |
• | Financial institutions must obtain the authorization of the Superintendency of Finance before initiating operations. |
• | Violations to provisions of Colombia’s financial system are subject to administrative sanctions and, in some cases, may have criminal consequences. The Superintendency of Finance may inspect Colombian financial institutions on a discretionary basis, and has the authority to impose fines on such institutions, their directors and officers for violations of Colombian laws, regulations, or such financial institutions’ own by-laws. |
• | In addition, the Superintendency of Finance continues to make on-site inspections of Colombian financial institutions, including BC, on a regular basis, as did the Superintendency of Banking. |
• | Both as a financial institution and as an issuer of securities traded in the Colombian Stock Exchange, Bancolombia is subject to the supervision and regulation of the Superintendency of Finance. |
• | Additionally, Bancolombia’s subsidiaries located in Colombia, which are financial entities finance corporations, commercial finance companies, trust companies and its brokerage firm are each subject to the supervision and regulation of the Superintendency of Finance. |
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• | outstanding and paid-in capital stock; |
• | legal and other reserves; |
• | profits retained from prior fiscal years; |
• | the total value of the revaluation of equity account (revalorizacion del patrimonio) (if positive) and of the foreign currency translation adjustment account (ajuste por conversion de estados financieros); |
• | current fiscal year profits in a proportion equal to the percentage of prior fiscal year profits that were capitalized, or allocated to increase the legal reserve, or all profits that must be used to cover accrued losses; |
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• | any shares held as guarantee by Fogafin when the entity is in compliance with a recovery program aimed at bringing the Bank back into compliance with capital adequacy requirements (if the Superintendency of Finance establishes that such recovery program has failed, these shares shall not be taken into account when determining the Primary Capital); |
• | subordinated bonds issued by financial institutions and subscribed by Fogafin when they comply with the requirements stated in the regulations; |
• | the part of the surplus capital account from donations that complies with the requirements set forth in the applicable regulation; |
• | the value of dividend declared to be paid in shares; and |
• | the value of the liabilities owed by minority interests. |
• | any prior or current period losses; |
• | the total value of the capital revaluation account (if negative); |
• | accumulated inflation adjustment on non-monetary assets (provided that the respective assets have not been transferred); |
• | investments in shares, mandatory convertible bonds, subordinated bonds that may be convertible into shares or subordinated debt instruments issued by entities (excluding subsidiaries) subject to the supervision of the Superintendency of Finance excluding appraisals and investments in Finagro credit establishments and investments undertaken pursuant to article 63 of Decree 663 of 1993, subject to the conditions set forth in the regulation; and |
• | investments in shares, mandatory convertible bonds, subordinated bonds that may be convertible into shares or subordinated debt instruments issued by foreign financial institutions where the investor directly or indirectly holds at least 20% of the capital of said institution (excluding subsidiaries). This amount includes foreign currency translation and excludes appraisals. |
• | 50% of the accumulated inflation adjustment of non-monetary assets (provided that such assets have not been disposed of); |
• | 50% of asset reappraisal (excluding revaluations of foreclosed assets or assets received as payment of credits); |
• | mandatory convertible bonds effectively subscribed and paid, with maturities of up to 5 years, (provided that the terms and conditions of their issuance were approved by the Superintendency of Finance and subject to the conditions set forth by the Superintendency of Finance); |
• | subordinated monetary obligations as long as said obligations do not exceed 50% of Primary Capital, and comply with additional requirements stated in the regulations; |
• | the part of the surplus capital account from donations that complies with the requirements set fort in the applicable regulation; and |
• | general allowances made in accordance with the instructions issued by the Superintendency of Finance. |
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• | 50% of the direct or indirect capital investments (in entities subject to the supervision of the Superintendency of Finance excluding subsidiaries) and mandatory convertible bonds reappraisal, that complies with the requirements set fort in the applicable regulation; |
• | 50% of the direct or indirect capital investments (excluding subsidiaries) and mandatory convertible bonds reappraisal, of foreign financial entities with respect to which the bank’s share is or exceeds 20% of the entity’s subscribed capital. |
• | the value of the devaluation of equity investments with low exchange volume or which are unquoted. |
As of December 31, 2007 | ||||
(Ps million, except percentages) | ||||
Subscribed capital | Ps | 460,684 | ||
Legal reserve and other reserves | 3,359,604 | |||
Unappropriated retained earnings | 92,218 | |||
Net Income | 1,054,315 | |||
Subordinated bonds subscribed by Fogafin | 7,346 | |||
Less: | ||||
Long — term investments | (91,730 | ) | ||
Non — monetary inflation adjustment | (153,336 | ) | ||
Primary capital (Tier I) | Ps | 4,729,101 | ||
Reappraisal of assets | Ps | 121,363 | ||
Provision loans | 128,087 | |||
Non-monetary inflation adjustment | 81,362 | |||
Subordinated bonds | 848,404 | |||
Computed secondary capital (Tier II) | Ps | 1,179,216 | ||
Primary capital (Tier I) | Ps | 4,729,101 | ||
Secondary capital (up to an amount equal to primary capital) (Tier II) | 1,179,216 | |||
Technical Capital | Ps | 5,908,317 | ||
Capital ratios | ||||
Primary capital to risk-weighted assets (Tier I) | 10.14 | % | ||
Secondary capital to risk-weighted assets (Tier II) | 2.53 | % | ||
Technical capital to risk-weighted assets | 12.67 | % | ||
Risk weighted assets included market risk | Ps | 46,628,036 | ||
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Ordinary Reserve | Marginal Reserve | |||||||
Requirements % | Requirement (%)(2) | |||||||
Private demand deposits | 8.3 | 27 | ||||||
Government demand deposits | 8.3 | 27 | ||||||
Other deposits and liabilities | 8.3 | 27 | ||||||
Savings deposits | 8.3 | 27 | ||||||
Time deposits (1) | 2.5 | 5 |
(1) | 2.5 % and 5% for deposits with maturities under 540 days, and 0% for deposits with maturities above 540 days. | |
(2) | Over the excess balance of the deposits as of May 7, 2007 for any determination date. In the event that the balance as of May 7, 2007 is below the existing amounts of such date, the marginal reserve requirements does not apply. |
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Months for the maturity | Discount Percentage (%) | |||||||
6 months | 6.67 | |||||||
5 months | 5.59 | |||||||
4 months | 4.50 | |||||||
3 months | 3.39 | |||||||
2 months | 2.27 | |||||||
1 month | 1.14 |
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Shareholding | ||||||||
Jurisdiction of | directly and | |||||||
Entity | Incorporation | Business | indirectly | |||||
Leasing Bancolombia S.A. | Colombia | Leasing | 100 | % | ||||
Fiduciaria Bancolombia S.A | Colombia | Trust | 98.81 | % | ||||
Bancolombia Panamá S.A. | Panama | Banking | 100 | % | ||||
Bancolombia Caymán | Cayman Islands | Banking | 100 | % | ||||
Sistema de Inversiones y Negocios S.A. | Panama | Investments | 100 | % | ||||
Sinesa Holding Company Ltd. | British Virgin Islands | Investments | 100 | % | ||||
Future Net Inc. | Panama | E-commerce | 100 | % | ||||
Banca de Inversión Bancolombia S.A. | Colombia | Investment Banking | 100 | % | ||||
Inversiones Valsimesa S.A. | Colombia | Investments | 71.75 | % | ||||
Inmobiliaria Bancol S.A. | Colombia | Real estate broker | 99.09 | % | ||||
Fundicom S.A. | Colombia | Metals engineering | 79.90 | % | ||||
Valores Simesa S.A. | Colombia | Investments | 71.75 | % | ||||
Todo UNO Colombia S.A. | Colombia | E-commerce | 89.92 | % | ||||
Compañía de Financiamiento Comercial S.A.Sufinanciamiento | Colombia | Financial services | 99.99 | % | ||||
Renting Colombia S.A. | Colombia | Operating leasing | 90.30 | % | ||||
Renting Peru S.A.C. | Peru | Operating Leasing | 90.39 | % |
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Shareholding | ||||||||
Jurisdiction of | directly and | |||||||
Entity | Incorporation | Business | indirectly | |||||
Tempo Rent a Car S.A. | Colombia | Car Rental | 90.80 | % | ||||
Patrimonio Autónomo Renting Colombia | Colombia | Investments | 100 | % | ||||
Suleasing International USA, Inc. | USA | Leasing | 100 | % | ||||
Suleasing Internacional do Brasil Locaçao de Bens S.A. | Brazil | Leasing | 100 | % | ||||
Inversiones CFNS Ltda. | Colombia | Investments | 100 | % | ||||
Valores Bancolombia S.A. | Colombia | Securities brokerage | 100 | % | ||||
Suvalor Panamá S.A. | Panama | Securities brokerage | 100 | % | ||||
Bancolombia Puerto Rico Internacional, Inc | Puerto Rico | Banking | 100 | % | ||||
Multienlace S.A. | Colombia | Contact center | 98.20 | % | ||||
Inversiones IVL S.A. | Colombia | Investments | 98.25 | % | ||||
Factoring Bancolombia S.A. | Colombia | Financial services | 99.99 | % | ||||
Patrimonio Autónomo C.V. Sufinanciamiento | Colombia | Loan management | 100 | % | ||||
Banagrícola S.A. | Panama | Investments | 98.90 | % | ||||
Banco Agrícola Panamá S.A. | Panama | Banking | 98.90 | % | ||||
Inversiones Financieras Banco Agrícola S.A. | El Salvador | Investments | 98.08 | % | ||||
Banco Agrícola S.A. | El Salvador | Banking | 96.00 | % | ||||
Arrendora Financiera S.A. | El Salvador | Leasing | 96.02 | % | ||||
Credibac S.A. de C.V. | El Salvador | Credit card services | 96.01 | % | ||||
Bursabac S.A. de C.V. | El Salvador | Securities Brokerage | 98.08 | % | ||||
AFP Crecer S.A. | El Salvador | Pension Fund | 98.32 | % | ||||
Aseguradora Suiza Salvadoreña S.A. | El Salvador | Insurance Company | 94.70 | % | ||||
Asesuisa Vida S.A. | El Salvador | Insurance Company | 94.70 | % |
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Number of | Number of | Net value | ||||||||||
Year ended December 31 | lease contracts | customers | (Ps million) | |||||||||
2005 | 19,742 | 9,399 | 2,362,105 | |||||||||
2006 | 23,497 | 10,380 | 3,158,717 | |||||||||
2007 | 28,932 | 13,103 | 4,190,595 |
Year ended as of | Number of | Leased Assets | Leased Assets | |||||||||
December 31 | Customers | (Units) | (Ps million) | |||||||||
2005 | 291 | 3,039 | 167,736 | |||||||||
2006 | 349 | 3,708 | 207,601 | |||||||||
2007 | 385 | 6,085 | 454,355 |
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E.1. | DISTRIBUTION OF ASSETS, LIABILITIES AND STOCKHOLDERS’ EQUITY; INTEREST RATES AND INTEREST DIFFERENTIAL |
R(p) = | 1 +N(p) | -1 | ||
1 + I |
Where: | ||
R(p)= | real average interest rate on peso-denominated assets and liabilities for the period. | |
N(p)= | nominal average interest rate on peso-denominated assets and liabilities for the period. | |
I= | The consumer price index rate in Colombia for the period (based on the Colombian inflation rate). |
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• | average annual balances calculated using actual month-end balances for all of the Bank’s assets and liabilities; |
• | interest income and expense amounts; and |
• | nominal and real interest rates for the Bank’s interest-earning assets and interest-bearing liabilities. |
Average Balance Sheet and Income from Interest-Earning Assets for the Fiscal Years | ||||||||||||||||||||||||||||||||||||||||||||||||
Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2005 | 2006 | 2007 | ||||||||||||||||||||||||||||||||||||||||||||||
Average | Average | Average | Average | |||||||||||||||||||||||||||||||||||||||||||||
Nominal | Nominal | Real | Nominal | |||||||||||||||||||||||||||||||||||||||||||||
Interest | Interest | Average Real | Average | Interest | Interest | Interest | Average | Interest | Interest | Average Real | ||||||||||||||||||||||||||||||||||||||
Average Balance | Earned | Rate | Interest Rate | Balance | Earned | Rate | Rate | Balance | Earned | Rate | Interest Rate | |||||||||||||||||||||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Overnight funds(3) | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | Ps | 55,779 | Ps | 3,032 | 5.4 | % | 0.6 | % | Ps | 36,581 | Ps | 4,695 | 12.8 | % | 8.0 | % | Ps | 120,768 | Ps | 8,251 | 6.8 | % | 1.1 | % | ||||||||||||||||||||||||
U.S. Dollar-denominated | 433,111 | 13,366 | 3.1 | % | 3.1 | % | 261,159 | 20,504 | 7.9 | % | 7.9 | % | 829,970 | 59,202 | 7.1 | % | 7.1 | % | ||||||||||||||||||||||||||||||
Total | 488,890 | 16,398 | 3.4 | % | 297,740 | 25,199 | 8.5 | % | 950,738 | 67,453 | 7.1 | % | ||||||||||||||||||||||||||||||||||||
Investment securities | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 5,851,619 | 716,771 | 12.2 | % | 7.1 | % | 5,102,999 | 144,715 | 2.8 | % | -1.6 | % | 3,769,877 | 302,408 | 8.0 | % | 2.2 | % | ||||||||||||||||||||||||||||||
U.S. Dollar-denominated | 1,626,509 | 107,938 | 6.6 | % | 6.6 | % | 1,792,735 | 128,482 | 7.2 | % | 7.2 | % | 806,302 | 54,288 | 6.7 | % | 6.7 | % | ||||||||||||||||||||||||||||||
Total | 7,478,128 | 824,709 | 11.0 | % | 6,895,734 | 273,197 | 4.0 | % | 4,576,179 | 356,696 | 7.8 | % | ||||||||||||||||||||||||||||||||||||
Loans and Financial Leases(1) (2) | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 13,794,002 | 2,110,574 | 15.3 | % | 10.0 | % | 17,410,381 | 2,397,421 | 13.8 | % | 8.9 | % | 23,450,352 | 3,453,571 | 14.7 | % | 8.6 | % | ||||||||||||||||||||||||||||||
U.S. Dollar-denominated | 3,483,715 | 231,172 | 6.6 | % | 6.6 | % | 3,928,500 | 299,251 | 7.6 | % | 7.6 | % | 3,999,030 | 321,479 | 8.0 | % | 8.0 | % | ||||||||||||||||||||||||||||||
Total | 17,277,717 | 2,341,746 | 13.6 | % | 21,338,881 | 2,696,672 | 12.6 | % | 27,449,382 | 3,775,050 | 13.8 | % | ||||||||||||||||||||||||||||||||||||
Total interest-earning assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 19,701,400 | 2,830,377 | 14.4 | % | 9.1 | % | 22,549,961 | 2,546,831 | 11.3 | % | 6.5 | % | 27,340,997 | 3,764,230 | 13.8 | % | 7.6 | % | ||||||||||||||||||||||||||||||
U.S. Dollar-denominated | 5,543,335 | 352,476 | 6.4 | % | 6.4 | % | 5,982,394 | 448,237 | 7.5 | % | 7.5 | % | 5,635,302 | 434,969 | 7.7 | % | 7.7 | % | ||||||||||||||||||||||||||||||
Total | 25,244,735 | 3,182,853 | 12.6 | % | 28,532,355 | 2,995,068 | 10.5 | % | 32,976,299 | 4,199,199 | 12.7 | % | ||||||||||||||||||||||||||||||||||||
Total non interest-earning assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 4,099,522 | 4,071,643 | 5,025,959 | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Dollar-denominated | (632,699 | ) | (166,711 | ) | 818,214 | |||||||||||||||||||||||||||||||||||||||||||
Total | 3,466,823 | 3,904,932 | 5,844,173 | |||||||||||||||||||||||||||||||||||||||||||||
Total interest and non interest- earnings assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 23,800,922 | 2,830,377 | 26,621,604 | 2,546,831 | 32,366,956 | 3,764,230 | ||||||||||||||||||||||||||||||||||||||||||
U.S. Dollar-denominated | 4,910,636 | 352,476 | 5,815,683 | 448,237 | 6,453,516 | 434,969 | ||||||||||||||||||||||||||||||||||||||||||
Total Assets | Ps | 28,711,558 | Ps | 3,182,853 | Ps | 32,437,287 | Ps | 2,995,068 | Ps | 38,820,472 | Ps | 4,199,199 | ||||||||||||||||||||||||||||||||||||
(1) | Includes performing loans only. | |
(2) | Since January 1, 2004, instead of recording financial leases as property, plant and equipment, companies must account for them in their loan portfolio. | |
(3) | Overnight funds interest earned includes commissions and therefore differs from the concept in the consolidated statements of operations. |
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Average Balance Sheet and Income from Interest-Earning Assets Banagrícola | ||||||||||||||||
for the Fiscal Year Ended December 31, | ||||||||||||||||
2007 | ||||||||||||||||
Average Nominal | Average Real | |||||||||||||||
Average Balance | Interest Earned | Interest Rate | Interest Rate | |||||||||||||
ASSETS | ||||||||||||||||
Interest-earning assets | ||||||||||||||||
Overnight funds | ||||||||||||||||
U.S. Dollar-denominated | 12,639 | 28,378 | 224.5 | % | 224.5 | % | ||||||||||
Total | 12,639 | 28,378 | 224.5 | % | ||||||||||||
Investment securities | ||||||||||||||||
U.S. Dollar-denominated | 1,182,922 | 59,948 | 5.1 | % | 5.1 | % | ||||||||||
Total | 1,182,922 | 59,948 | 5.1 | % | ||||||||||||
Loans | ||||||||||||||||
U.S. Dollar-denominated | 5,349,730 | 503,391 | 9.4 | % | 9.4 | % | ||||||||||
Total | 5,349,730 | 503,391 | 9.4 | % | ||||||||||||
Total interest-earning assets | ||||||||||||||||
U.S. Dollar-denominated | 6,545,291 | 591,717 | 9.0 | % | 9.0 | % | ||||||||||
Total | 6,545,291 | 591,717 | 9.0 | % | ||||||||||||
Non interest-earning assets | ||||||||||||||||
Cash due from banks and Central Bank | ||||||||||||||||
U.S. Dollar-denominated | 1,076,673 | |||||||||||||||
Total | 1,076,673 | |||||||||||||||
Allowance for loan losses | ||||||||||||||||
U.S. Dollar-denominated | (183,534 | ) | ||||||||||||||
Total | (183,534 | ) | ||||||||||||||
Non-performing loans | ||||||||||||||||
U.S. Dollar-denominated | 102,265 | |||||||||||||||
Total | 102,265 | |||||||||||||||
Customers’ acceptances | ||||||||||||||||
U.S. Dollar-denominated | 3,147 | |||||||||||||||
Total | 3,147 | |||||||||||||||
Accounts receivable, net | ||||||||||||||||
U.S. Dollar-denominated | 50,784 | |||||||||||||||
Total | 50,784 | |||||||||||||||
Foreclosed assets, net | ||||||||||||||||
U.S. Dollar-denominated | 21,491 | |||||||||||||||
Total | 21,491 | |||||||||||||||
Premises and equipment | ||||||||||||||||
U.S. Dollar-denominated | 143,559 | |||||||||||||||
Total | 143,559 | |||||||||||||||
Other assets | ||||||||||||||||
U.S. Dollar-denominated | 180,585 | |||||||||||||||
Total | 180,585 | |||||||||||||||
Total non interest-earning assets | ||||||||||||||||
U.S. Dollar-denominated | 1,394,970 | |||||||||||||||
Total | 1,394,970 | |||||||||||||||
Total interest and non interest-earning assets | ||||||||||||||||
U.S. Dollar-denominated | 7,940,261 | 591,717 | ||||||||||||||
Total Assets | 7,940,261 | 591,717 |
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Average Balance Sheet and Interest Paid on Interest-Bearing Liabilities for the Fiscal Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2005 | 2006 | 2007 | ||||||||||||||||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | |||||||||||||||||||||||||||||||||||||||||||
Nominal | Real | Nominal | Real | Nominal | Real | |||||||||||||||||||||||||||||||||||||||||||
Average | Interest | Interest | Average | Interest | Interest | Average | Interest | Interest | ||||||||||||||||||||||||||||||||||||||||
Balance | Interest Paid | Rate | Rate | Balance | Interest Paid | Rate | Rate | Balance | Interest Paid | Rate(1) | Rate(1) | |||||||||||||||||||||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND SHARE-HOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Checking deposits | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | Ps | 188,678 | Ps | 5,223 | 2.8 | % | -2.0 | % | Ps | 294,062 | Ps | 6,568 | 2.2 | % | -2.2 | % | Ps | 348,131 | Ps | 7,626 | 2.2 | % | -3.3 | % | ||||||||||||||||||||||||
U.S. Dollar-denominated | 887,497 | 15,088 | 1.7 | % | 1.7 | % | 939,789 | 26,108 | 2.8 | % | 2.8 | % | 858,056 | 25,104 | 2.9 | % | 2.9 | % | ||||||||||||||||||||||||||||||
Total | 1,076,175 | 20,311 | 1.9 | % | 1,233,851 | 32,676 | 2.6 | % | 1,206,187 | 32,730 | 2.7 | % | ||||||||||||||||||||||||||||||||||||
Savings deposits | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 6,905,512 | 240,016 | 3.5 | % | -1.3 | % | 8,252,173 | 261,550 | 3.2 | % | -1.3 | % | 10,309,007 | 446,596 | 4.3 | % | -1.3 | % | ||||||||||||||||||||||||||||||
U.S. Dollar-denominated | 135,822 | 1,872 | 1.4 | % | 1.4 | % | 136,420 | 2,831 | 2.1 | % | 2.1 | % | 167,755 | 4,735 | 2.8 | % | 2.8 | % | ||||||||||||||||||||||||||||||
Total | 7,041,334 | 241,888 | 3.4 | % | 8,388,593 | 264,381 | 3.2 | % | 10,476,762 | 451,331 | 4.3 | % | ||||||||||||||||||||||||||||||||||||
Time deposits | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 4,869,923 | 393,898 | 8.1 | % | 3.1 | % | 5,275,213 | 376,919 | 7.1 | % | 2.6 | % | 6,882,302 | 560,996 | 8.2 | % | 2.3 | % | ||||||||||||||||||||||||||||||
U.S. Dollar-denominated | 1,760,073 | 55,468 | 3.2 | % | 3.2 | % | 1,796,282 | 82,594 | 4.6 | % | 4.6 | % | 2,228,390 | 116,465 | 5.2 | % | 5.2 | % | ||||||||||||||||||||||||||||||
Total | 6,629,996 | 449,366 | 6.8 | % | 7,071,495 | 459,513 | 6.5 | % | 9,110,692 | 677,461 | 7.4 | % | ||||||||||||||||||||||||||||||||||||
Overnight funds | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 1,039,540 | 68,830 | 6.6 | % | 1.7 | % | 1,086,896 | 80,413 | 7.4 | % | 2.8 | % | 1,046,906 | 104,172 | 10.0 | % | 4.0 | % | ||||||||||||||||||||||||||||||
U.S. Dollar-denominated | 122,134 | 5,080 | 4.2 | % | 4.2 | % | 397,212 | 20,463 | 5.2 | % | 5.2 | % | 401,515 | 26,955 | 6.7 | % | 6.7 | % | ||||||||||||||||||||||||||||||
Total | 1,161,674 | 73,910 | 6.4 | % | 1,484,108 | 100,876 | 6.8 | % | 1,448,421 | 131,127 | 9.1 | % | ||||||||||||||||||||||||||||||||||||
Borrowings from development and other domestic banks | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 1,970,391 | 152,791 | 7.8 | % | 2.8 | % | 2,218,433 | 174,108 | 7.8 | % | 3.2 | % | 2,599,267 | 254,627 | 9.8 | % | 3.9 | % | ||||||||||||||||||||||||||||||
U.S. Dollar-denominated | 71,513 | 3,718 | 5.2 | % | 5.2 | % | 181,326 | 6,399 | 3.5 | % | 3.5 | % | 291,096 | 13,085 | 4.5 | % | 4.5 | % | ||||||||||||||||||||||||||||||
Total | 2,041,904 | 156,509 | 7.7 | % | 2,399,759 | 180,507 | 7.5 | % | 2,890,363 | 267,712 | 9.3 | % | ||||||||||||||||||||||||||||||||||||
Interbank borrowings | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
U.S. Dollar-denominated | 1,349,987 | 54,630 | 4.0 | % | 4.0 | % | 1,574,870 | 94,872 | 6.0 | % | 6.0 | % | 1,050,752 | 63,609 | 6.1 | % | 6.1 | % | ||||||||||||||||||||||||||||||
Total | 1,349,987 | 54,630 | 4.0 | % | 1,574,870 | 94,872 | 6.0 | % | 6.0 | % | 1,050,752 | 63,609 | 6.1 | % | ||||||||||||||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 1,812,802 | 153,658 | 8.5 | % | 3.5 | % | 1,442,367 | 113,404 | 7.9 | % | 3.2 | % | 1,258,676 | 105,526 | 8.4 | % | 2.5 | % | ||||||||||||||||||||||||||||||
U.S. Dollar-denominated | — | — | — | — | 493,814 | 34,069 | 6.9 | % | 6.9 | % | ||||||||||||||||||||||||||||||||||||||
Total | 1,812,802 | 153,658 | 8.5 | % | 1,442,367 | 113,404 | 7.9 | % | 7.9 | % | 1,752,490 | 139,595 | 8.0 | % | ||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 16,786,846 | 1,014,416 | 6.0 | % | 1.1 | % | 18,569,144 | 1,012,962 | 5.5 | % | 0.9 | % | 22,444,289 | 1,479,543 | 6.6 | % | 0.9 | % | ||||||||||||||||||||||||||||||
U.S. Dollar-denominated | 4,327,026 | 135,856 | 3.1 | % | 3.1 | % | 5,025,899 | 233,267 | 4.6 | % | 4.6 | % | 5,491,378 | 284,022 | 5.2 | % | 5.2 | % | ||||||||||||||||||||||||||||||
Total | 21,113,872 | 1,150,272 | 5.4 | % | 23,595,043 | 1,246,229 | 5.3 | % | 27,935,667 | 1,763,565 | 6.3 | % | ||||||||||||||||||||||||||||||||||||
Total interest and non-interest bearing liabilities and shareholders’ equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Peso-denominated | 23,742,256 | 1,014,416 | 26,493,304 | 1,012,962 | 32,325,570 | 1,479,543 | ||||||||||||||||||||||||||||||||||||||||||
U.S. Dollar-denominated | 4,969,302 | 135,856 | 5,943,983 | 233,267 | 6,494,902 | 284,022 | ||||||||||||||||||||||||||||||||||||||||||
Total liabilities and Shareholders equity | Ps | 28,711,558 | Ps | 1,150,272 | Ps | 32,437,287 | Ps | 1,246,229 | Ps | 38,820,472 | Ps | 1,763,565 | ||||||||||||||||||||||||||||||||||||
(1) | See Item 4—E.1. Information on the company — E. Selected Statistical Information — E.1. Distribution of Assets, Liabilities and Stockholder’s Equity; Interest Rates and Interest Differential. |
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Average Balance Sheet and Interest Paid on Interest-Bearing Liabilities Banagrícola for the | ||||||||||||||||
Fiscal Year Ended December 31, | ||||||||||||||||
2007 | ||||||||||||||||
Average Nominal | Average Real | |||||||||||||||
Average Balance | Interest Paid | Interest Rate | Interest Rate | |||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||
Checking deposits | ||||||||||||||||
U.S. Dollar-denominated | 898,122 | 6,346 | 0.7 | % | 0.7 | % | ||||||||||
Total | 898,122 | 6,346 | 0.7 | % | ||||||||||||
Savin deposits | ||||||||||||||||
U.S. Dollar-denominated | 1,621,887 | 10,106 | 0.6 | % | 0.6 | % | ||||||||||
Total | 1,621,887 | 10,106 | 0.6 | % | ||||||||||||
Time deposits | ||||||||||||||||
U.S. Dollar-denominated | 2,995,343 | 139,227 | 4.6 | % | 4.6 | % | ||||||||||
Total | 2,995,343 | 139,227 | 4.6 | % | ||||||||||||
Overnight funds | ||||||||||||||||
U.S. Dollar-denominated | 15,111 | 819 | 5.4 | % | 5.4 | % | ||||||||||
Total | 15,111 | 819 | 5.4 | % | ||||||||||||
Borrowings from development and other domestic banks | ||||||||||||||||
U.S. Dollar-denominated | 46 | — | 0.0 | % | 0.0 | % | ||||||||||
Total | 46 | — | 0.0 | % | ||||||||||||
Interbank borrowings | ||||||||||||||||
U.S. Dollar-denominated | 697,771 | 53,005 | 7.6 | % | 7.6 | % | ||||||||||
Total | 697,771 | 53,005 | 7.6 | % | ||||||||||||
Long-term debt | ||||||||||||||||
U.S. Dollar-denominated | 561,646 | 29,841 | 5.3 | % | 5.3 | % | ||||||||||
Total | 561,646 | 29,841 | 5.3 | % | ||||||||||||
Total interest-bearing liabilities | ||||||||||||||||
U.S. Dollar-denominated | 6,789,926 | 239,344 | 3.5 | % | 3.5 | % | ||||||||||
Total | 6,789,926 | 239,344 | 3.5 | % | ||||||||||||
Non-interest-bearing liabilities | ||||||||||||||||
Other deposits | ||||||||||||||||
U.S. Dollar-denominated | 33,559 | |||||||||||||||
Total | 33,559 | |||||||||||||||
Other liabilities | ||||||||||||||||
U.S. Dollar-denominated | 231,022 | |||||||||||||||
Total | 231,022 | |||||||||||||||
Shareholders’ equity | ||||||||||||||||
U.S. Dollar-denominated | 885,752 | |||||||||||||||
Total | 885,752 | |||||||||||||||
Total non-interest bearing liabilities and shareholders’ equity | ||||||||||||||||
U.S. Dollar-denominated | 1,150,333 | |||||||||||||||
Total | 1,150,333 | |||||||||||||||
Total interest and non-interest bearing liabilities and shareholders’ equity | ||||||||||||||||
U.S. Dollar-denominated | 7,940,259 | 239,344 | ||||||||||||||
Total liabilities and Shareholders equity | 7,940,259 | 239,344 | ||||||||||||||
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2005-2006 | 2006-2007 | |||||||||||||||||||||||
Increase (Decrease) | Increase (Decrease) | |||||||||||||||||||||||
Due To Changes in: | Due To Changes in: | |||||||||||||||||||||||
Net | Net | |||||||||||||||||||||||
Volume | Rate | Change | Volume | Rate | Change | |||||||||||||||||||
(Ps million) | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Overnight funds | ||||||||||||||||||||||||
Peso-denominated | Ps | (2,464 | ) | Ps | 4,127 | Ps | 1,663 | Ps | 5,752 | Ps | (2,196 | ) | Ps | 3,556 | ||||||||||
U.S. Dollar-denominated | (13,500 | ) | 20,638 | 7,138 | 40,573 | (1,875 | ) | 38,698 | ||||||||||||||||
Total | (15,964 | ) | 24,765 | 8,801 | 46,325 | (4,071 | ) | 42,254 | ||||||||||||||||
Investment securities | ||||||||||||||||||||||||
Peso-denominated | (21,230 | ) | (550,826 | ) | (572,056 | ) | (106,939 | ) | 264,632 | 157,693 | ||||||||||||||
U.S. Dollar-denominated | 11,913 | 8,631 | 20,544 | (66,416 | ) | (7,778 | ) | (74,194 | ) | |||||||||||||||
Total | (9,317 | ) | (542,195 | ) | (551,512 | ) | (173,355 | ) | 256,854 | 83,499 | ||||||||||||||
Loans | ||||||||||||||||||||||||
Peso-denominated | 497,978 | (211,131 | ) | 286,847 | 889,516 | 166,634 | 1,056,150 | |||||||||||||||||
U.S. Dollar-denominated | 33,881 | 34,198 | 68,079 | 5,670 | 16,558 | 22,228 | ||||||||||||||||||
Total | 531,859 | (176,933 | ) | 354,926 | 895,186 | 183,192 | 1,078,378 | |||||||||||||||||
Total interest-earning assets | ||||||||||||||||||||||||
Peso-denominated | 474,284 | (757,830 | ) | (283,546 | ) | 788,329 | 429,070 | 1,217,399 | ||||||||||||||||
U.S. Dollar-denominated | 32,294 | 63,467 | 95,761 | (20,173 | ) | 6,905 | (13,268 | ) | ||||||||||||||||
Total | Ps | 506,578 | Ps | (694,363 | ) | Ps | (187,785 | ) | Ps | 768,156 | Ps | 435,975 | Ps | 1,204,131 | ||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Checking deposits | ||||||||||||||||||||||||
Peso-denominated | Ps | 2,354 | Ps | (1,009 | ) | Ps | 1,345 | Ps | 1,184 | Ps | (126 | ) | Ps | 1,058 | ||||||||||
U.S. Dollar-denominated | 1,453 | 9,567 | 11,020 | (2,391 | ) | 1,387 | (1.004 | ) | ||||||||||||||||
Total | 3,807 | 8,558 | 12,365 | (1,207 | ) | 1,261 | 54 | |||||||||||||||||
Savings deposits | ||||||||||||||||||||||||
Peso-denominated | 42,682 | (21,148 | ) | 21,534 | 89,104 | 95,942 | 185,046 | |||||||||||||||||
U.S. Dollar-denominated | 12 | 947 | 959 | 884 | 1,020 | 1,904 | ||||||||||||||||||
Total | 42,694 | (20,201 | ) | 22,493 | 89,988 | 96,962 | 186,950 | |||||||||||||||||
Time deposits | ||||||||||||||||||||||||
Peso-denominated | 28,958 | (45,937 | ) | (16,979 | ) | 130,998 | 53,079 | 184,077 | ||||||||||||||||
U.S. Dollar-denominated | 1,665 | 25,461 | 27,126 | 22,584 | 11.287 | 33,871 | ||||||||||||||||||
Total | 30,623 | (20,476 | ) | 10,147 | 153,582 | 64,366 | 217,948 | |||||||||||||||||
Overnight funds | ||||||||||||||||||||||||
Peso-denominated | 3,504 | 8,079 | 11,583 | (3,979 | ) | 27,738 | 23,759 | |||||||||||||||||
U.S. Dollar-denominated | 14,171 | 1,212 | 15,383 | 289 | 6,203 | 6,492 | ||||||||||||||||||
Total | 17,675 | 9,291 | 26,966 | (3,690 | ) | 33,941 | 30,251 | |||||||||||||||||
Borrowings from development and other domestic banks | ||||||||||||||||||||||||
Peso-denominated | 19,467 | 1,850 | 21,317 | 37,307 | 43,212 | 80,519 | ||||||||||||||||||
U.S. Dollar-denominated | 3,875 | (1,194 | ) | 2,681 | 4,934 | 1,752 | 6,686 | |||||||||||||||||
Total | 23,342 | 656 | 23,998 | 42,241 | 44,964 | 87,205 |
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2005-2006 | 2006-2007 | |||||||||||||||||||||||
Increase (Decrease) | Increase (Decrease) | |||||||||||||||||||||||
Due To Changes in: | Due To Changes in: | |||||||||||||||||||||||
Net | Net | |||||||||||||||||||||||
Volume | Rate | Change | Volume | Rate | Change | |||||||||||||||||||
(Ps million) | ||||||||||||||||||||||||
Interbank borrowings | ||||||||||||||||||||||||
Peso-denominated | — | — | — | — | — | — | ||||||||||||||||||
U.S. Dollar-denominated | 13,547 | 26,695 | 40,242 | (31,728 | ) | 465 | (31,263 | ) | ||||||||||||||||
Total | 13,547 | 26,695 | 40,242 | (31,728 | ) | 465 | (31,263 | ) | ||||||||||||||||
Long-term debt | ||||||||||||||||||||||||
Peso-denominated | (29,125 | ) | (11,129 | ) | (40,254 | ) | (15,400 | ) | 7,522 | (7,878 | ) | |||||||||||||
U.S. Dollar-denominated | — | — | — | 34,069 | — | 34,069 | ||||||||||||||||||
Total | (29,125 | ) | (11,129 | ) | (40,254 | ) | 18,669 | 7,522 | 26,191 | |||||||||||||||
Total interest-bearing liabilities | ||||||||||||||||||||||||
Peso-denominated | 67,840 | (69,294 | ) | (1,454 | ) | 239,214 | 227,367 | 466,581 | ||||||||||||||||
U.S. Dollar-denominated | 34,723 | 62,688 | 97,411 | 28,641 | 22,114 | 50,755 | ||||||||||||||||||
Total | Ps | 102,563 | Ps | (6,606 | ) | Ps | 95,957 | Ps | 267,855 | Ps | 249,481 | Ps | 517,336 | |||||||||||
Interest-Earning Assets-Yield For the Fiscal | ||||||||||||
Year Ended December 31, | ||||||||||||
2005 | 2006 | 2007 | ||||||||||
(in millions of pesos, except percentages) | ||||||||||||
Total average interest-earning assets | ||||||||||||
Peso-denominated | Ps | 19,701,400 | Ps | 22,549,961 | Ps | 27,340,997 | ||||||
Dollar-denominated | 5,543,335 | 5,982,394 | 5,635,302 | |||||||||
Total | Ps | 25,244,735 | Ps | 28,532,355 | Ps | 32,976,299 | ||||||
Net interest earned(1) | ||||||||||||
Peso-denominated | Ps | 1,815,961 | Ps | 1,533,869 | Ps | 2,284,687 | ||||||
U.S. Dollar-denominated | 216,620 | 214,970 | 150,947 | |||||||||
Total | Ps | 2,032,581 | Ps | 1,748,839 | Ps | 2,435,634 | ||||||
Average yield on interest-earning assets | ||||||||||||
Peso-denominated | 14.4 | % | 11.3 | % | 13.8 | % | ||||||
U.S. Dollar-denominated | 6.4 | % | 7.5 | % | 7.7 | % | ||||||
Total | 12.6 | % | 10.5 | % | 12.7 | % | ||||||
Net interest margin(2) | ||||||||||||
Peso-denominated | 9.2 | % | 6.8 | % | 8.4 | % | ||||||
U.S. Dollar-denominated | 3.9 | % | 3.6 | % | 2.7 | % | ||||||
Total | 8.1 | % | 6.1 | % | 7.5 | % | ||||||
Interest spread(3) | ||||||||||||
Peso-denominated | 8.4 | % | 5.8 | % | 7.2 | % | ||||||
U.S. Dollar-denominated | 3.3 | % | 2.9 | % | 2.5 | % | ||||||
Total | 7.2 | % | 5.2 | % | 6.4 | % |
(1) | Net interest earned is interest income less interest paid and includes interest earned on investments. | |
(2) | Net interest margin is net interest income divided by total average interest-earning assets. | |
(3) | Interest spread is the difference between the average yield oninterest-earning assets and the average rate paid on interest-bearing liabilities. |
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Interest-Earning Assets-Yield Spread For the | ||||
Fiscal Year Ended December 31, 2007 | ||||
Total average interest-earning assets | ||||
Dollar-denominated | 6,545,291 | |||
Total | 6,545,291 | |||
Net interest earned | ||||
U.S. Dollar-denominated | 352,373 | |||
Total | 352,373 | |||
Average yield on interest-earning assets | ||||
U.S. Dollar-denominated | 9.0 | % | ||
Total | 9.0 | % | ||
Net interest margin(2) | ||||
U.S. Dollar-denominated | 5.4 | % | ||
Total | 5.4 | % | ||
Interest spread(3) | ||||
U.S. Dollar-denominated | 5.5 | % | ||
Total | 5.5 | % |
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Long - Term Classification | Maximum Face Value (%) | |
BB+, BB, BB- | Ninety (90) | |
B+, B, B- | Seventy (70) | |
CCC | Fifty (50) | |
DD, EE | Zero (0) |
Short- Term Classification | Maximum Face Value (%) | |
3 | Ninety (90) | |
4 | Fifty (50) | |
5 and 6 | Zero (0) |
As of December 31, | ||||||||||||
2005(1)(2) | 2006(1)(2) | 2007(1)(2) | ||||||||||
(in millions of pesos) | ||||||||||||
Dollar-denominated | ||||||||||||
Securities issued or secured by the Colombian Government | Ps | 667,713 | Ps | 840,508 | Ps | 208,275 | ||||||
Securities issued or secured by the Central Bank | — | — | 586,211 | |||||||||
Securities issued or secured by government entities(3) | — | — | 170,093 | |||||||||
Securities issued or secured by other financial entities | 737,328 | 383,988 | 152,968 | |||||||||
Securities issued by foreign governments | 252,263 | 66,530 | 450,484 | |||||||||
Others | 103,357 | 58,368 | 10,720 | |||||||||
Subtotal | 1,760,661 | 1,349,394 | 1,578,751 | |||||||||
Peso-denominated | ||||||||||||
Securities issued or secured by the Colombian Government | 5,010,982 | 2,016,413 | 2,013,143 | |||||||||
Securities issued or secured by the Central Bank | 2,582 | 267 | 153 | |||||||||
Securities issued or secured by government entities | 111,114 | 565,575 | 445,912 | |||||||||
Securities issued or secured by financial entities | 985,835 | 1,385,698 | 1,414,412 | |||||||||
Others | 387,773 | 198,688 | 121,850 | |||||||||
Subtotal | 6,498,286 | 4,166,641 | 3,995,470 | |||||||||
Total | Ps | 8,258,947 | Ps | 5,516,035 | Ps | 5,574,221 | ||||||
(1) | Includes debt securities only. Net investments in equity securities were Ps 200,754 million, Ps 161,726 million and Ps 200,030 million for 2005, 2006 and 2007, respectively. | |
(2) | These amounts are net of allowances for decline in value which were, Ps 5,936 million for 2005, Ps 14,525 million for 2006 and Ps 21,830 million for 2007, respectively. | |
(3) | For the year 2007, this amount includes investments in fiduciary certificates of participation. These certificates were issued for the Environmental Trust for the conservation of the Coffee Forest (Fideicomiso Ambiental para la Conservación del Bosque Cafetero “FICAFE”). This trust was formed with the transfer of the coffee sector’s loan portfolio by a number of banks in El Salvador, including like Banco Agrícola. The purpose of this transaction was to carry out the restructuration of those loans, promoted by the government of El Salvador. |
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Investment Amount- Book | Investment Amount - Book | |||||||||||||||||||||||
As of December 31, | Issuer | Value - (in million of pesos) | Value - (U.S. Dollars) | |||||||||||||||||||||
2005 | Republic of Brazil | Ps | 247,425 | US$ | 108,319,266 | |||||||||||||||||||
Republic of Panama | Ps | 4,838 | US$ | 2,118,008 | ||||||||||||||||||||
2006 | Republic of Brazil | Ps | 58,717 | US$ | 26,227,198 | |||||||||||||||||||
U.S. Treasury | Ps | 7,812 | US$ | 3,489,830 | ||||||||||||||||||||
2007 | Republic of El Salvador | Ps | 216,389 | US$ | 107,402,043 | |||||||||||||||||||
U.S. Treasury | Ps | 142,059 | US$ | 70,509,161 | ||||||||||||||||||||
Republic of Brazil | Ps | 50,480 | US$ | 25,055,174 | ||||||||||||||||||||
Republic of Sweden | Ps | 9,816 | US$ | 4,871,877 | ||||||||||||||||||||
Republic of Germany | Ps | 9,205 | US$ | 4,569,001 | ||||||||||||||||||||
Republic of Ireland | Ps | 7,092 | US$ | 3,519,874 | ||||||||||||||||||||
Republic of Italy | Ps | 6,170 | US$ | 3,062,423 | ||||||||||||||||||||
Republic of Austria | Ps | 2,094 | US$ | 1,039,193 | ||||||||||||||||||||
Spain | Ps | 2,083 | US$ | 1,033,955 | ||||||||||||||||||||
Republic of Canada | Ps | 2,052 | US$ | 1,018,588 | ||||||||||||||||||||
Republic of Finland | Ps | 2,045 | US$ | 1,014,783 | ||||||||||||||||||||
Republic of Panama | Ps | 999 | US$ | 495,625 |
As of December 31, 2007 | ||||||||||||||||||||||||||||||||||||||||
Maturing in less than 1 | Maturing between 1 and | Maturing between 5 and | Maturing more than | |||||||||||||||||||||||||||||||||||||
year | 5 years | 10 years | 10 years | Total | ||||||||||||||||||||||||||||||||||||
Balance(1) | Yield %(2) | Balance(1) | Yield %(2) | Balance(1) | Yield %(2) | Balance(1) | Yield %(2) | Balance(1) | Yield %(2) | |||||||||||||||||||||||||||||||
(in millions of pesos, except yields) | ||||||||||||||||||||||||||||||||||||||||
Dollar-denominated: | ||||||||||||||||||||||||||||||||||||||||
Securities issued or secured by Colombian government | Ps | 48,057 | 5.45 | % | Ps | 28,919 | 5.18 | % | Ps | 125,428 | 5.94 | % | Ps | 5,871 | 6.43 | % | Ps | 208,275 | 5.73 | % | ||||||||||||||||||||
Securities issued or secured by El Salvador Central Bank | 535,131 | 4.19 | % | 51,080 | 5.75 | % | — | 0.00 | % | — | 0.00 | % | 586,211 | 4.33 | % | |||||||||||||||||||||||||
Securities issued or secured by government entities | 1,955 | 4.92 | % | 51,213 | 6.01 | % | 53,098 | 6.87 | % | 63,827 | 6.16 | % | 170,093 | 6.32 | % | |||||||||||||||||||||||||
Securities issued by other financial entities | 134,675 | 5.75 | % | 17,199 | 6.78 | % | 1,094 | 5.48 | % | — | 0.00 | % | 152,968 | 5.87 | % | |||||||||||||||||||||||||
Securities issued by foreign governments | 247,322 | 4.42 | % | 91,705 | 4.50 | % | 40,361 | 3.73 | % | 71,096 | 6.25 | % | 450,484 | 4.67 | % | |||||||||||||||||||||||||
Others | 9,598 | 4.58 | % | 608 | 5.78 | % | 514 | 9.01 | % | — | 0.00 | % | 10,720 | 4.86 | % | |||||||||||||||||||||||||
Subtotal | 976,738 | 4.52 | % | 240,724 | 5.34 | % | 220,495 | 5.76 | % | 140,794 | 6.22 | % | 1,578,751 | 4.97 | % | |||||||||||||||||||||||||
Peso-denominated | ||||||||||||||||||||||||||||||||||||||||
Securities issued or secured by Colombian government | 334,500 | 9.22 | % | 1,013,792 | 9.39 | % | 460,543 | 7.37 | % | 204,308 | 10.71 | % | 2,013,143 | 9.04 | % | |||||||||||||||||||||||||
Securities issued or secured by the Central Bank | 145 | 8.81 | % | 8 | 0.00 | % | — | 0.00 | % | — | 0.00 | % | 153 | 8.37 | % | |||||||||||||||||||||||||
Securities issued or secured by government entities | 361,776 | 10.15 | % | 56,260 | 9.68 | % | 17,663 | 12.09 | % | 10,213 | 9.97 | % | 445,912 | 10.17 | % | |||||||||||||||||||||||||
Securities issued by other financial entities | 101,594 | 9.85 | % | 260,677 | 9.92 | % | 740,289 | 10.38 | % | 311,852 | 11.70 | % | 1,414,412 | 10.55 | % | |||||||||||||||||||||||||
Others | 20,131 | 10.74 | % | 82,265 | 10.80 | % | 19,454 | 11.25 | % | — | 0.00 | % | 121,850 | 10.87 | % | |||||||||||||||||||||||||
Subtotal | 818,146 | 9.74 | % | 1,413,002 | 9.59 | % | 1,237,949 | 9.33 | % | 526,373 | 11.28 | % | 3,995,470 | 9.76 | % | |||||||||||||||||||||||||
Total | Ps | 1,794,884 | Ps | 1,653,726 | Ps | 1,458,444 | Ps | 667,167 | Ps | 5,574,221 | ||||||||||||||||||||||||||||||
(1) | Amounts are net of allowances for decline in value which amounted to Ps 21,830 million in 2007. | |
(2) | Yield was calculated using the internal return rate (IRR) as of December 31, 2007. |
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Issuer | Fair value | Amortized Cost | ||||||||
(Ps million) | ||||||||||
Securities issued or secured by Colombian government | Ministry of Finance | 2,221,420 | 2,244,087 | |||||||
Securities issued by other financial entities | Titularizadora Colombiana | 1,132,127 | 1,146,875 | |||||||
Securities issued by Colombian Central Bank | Banco de la República | 586,363 | 586,399 | |||||||
Total | Ps | 3,939,910 | Ps | 3,977,361 | ||||||
• | Corporate loans, which include loans to medium and large corporations; |
• | Retail loans, which include loans to individuals, such as personal lines of credit, vehicle loans and credit card loans, small business loans; |
• | Financial leases; and |
• | Mortgage loans, for the acquisition and building of new or used housing. |
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As of December 31, | ||||||||||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007(3) | ||||||||||||||||||||||||
Foreign | Domestic | Total | ||||||||||||||||||||||||||
(Ps million) | ||||||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||
Trade financing | Ps | 149,582 | Ps | 253,632 | Ps | 783,894 | Ps | 777,417 | Ps | 313,736 | Ps | 845,810 | Ps | 1,159,546 | ||||||||||||||
Loans funded by domestic development banks | 394,947 | 770,331 | 948,659 | 321,263 | 39,758 | 842,957 | 882,715 | |||||||||||||||||||||
Working capital loans | 4,687,153 | 4,298,354 | 7,702,420 | 11,534,148 | 2,779,180 | 13,320,319 | 16,099,499 | |||||||||||||||||||||
Credit cards | 8,237 | 24,621 | 42,293 | 50,803 | 6,546 | 36,613 | 43,159 | |||||||||||||||||||||
Overdrafts | 32,371 | 67,018 | 62,041 | 74,218 | 8,610 | 50,536 | 59,146 | |||||||||||||||||||||
Total corporate | 5,272,290 | 5,413,956 | 9,539,307 | 12,757,849 | 3,147,830 | 15,096,235 | 18,244,065 | |||||||||||||||||||||
Retail(1) | ||||||||||||||||||||||||||||
Credit cards | 335,172 | 392,900 | 582,533 | 796,175 | 164,612 | 1,855,999 | 2,020,611 | |||||||||||||||||||||
Personal loans | 814,885 | 1,111,250 | 1,556,429 | 2,281,177 | 1,473,168 | 2,305,390 | 3,778,558 | |||||||||||||||||||||
Vehicle loans | 229,737 | 381,723 | 629,326 | 963,072 | 6,711 | 1,305,685 | 1,312,396 | |||||||||||||||||||||
Overdrafts | 81,294 | 89,867 | 101,957 | 119,882 | 22,943 | 195,063 | 218,006 | |||||||||||||||||||||
Loans funded by domestic development banks | 330,246 | 359,494 | 403,414 | 386,283 | 6,204 | 713,007 | 719,211 | |||||||||||||||||||||
Trade financing | 19,644 | 54,189 | 76,643 | 70,406 | 4,941 | 93,037 | 97,978 | |||||||||||||||||||||
Working capital loans | 898,239 | 1,295,643 | 1,612,650 | 2,331,999 | 13,399 | 3,715,945 | 3,729,344 | |||||||||||||||||||||
Total retail | 2,709,217 | 3,685,066 | 4,962,952 | 6,948,994 | 1,691,978 | 10,184,126 | 11,876,104 | |||||||||||||||||||||
Financial Leases(2) | — | 880,110 | 2,660,556 | 3,553,286 | 125 | 4,698,702 | 4,698,827 | |||||||||||||||||||||
Mortgage | 48,161 | 56,107 | 1,463,437 | 1,385,445 | 952,886 | 1,930,742 | 2,883,628 | |||||||||||||||||||||
Total loans | 8,029,668 | 10,035,239 | 18,626,252 | 24,645,574 | 5,792,819 | 31,909,805 | 37,702,624 | |||||||||||||||||||||
Allowance for loan losses | (387,263 | ) | (434,378 | ) | (705,882 | ) | (834,183 | ) | (201,647 | ) | (1,255,504 | ) | (1,457,151 | ) | ||||||||||||||
Total loans, net | Ps | 7,642,405 | Ps | 9,600,861 | Ps | 17,920,370 | Ps | 23,811,391 | Ps | 5,591,172 | Ps | 30,654,301 | Ps | 36,245,473 | ||||||||||||||
(1) | Includes loans to high-income individuals and small companies. | |
(2) | Includes financial leases, according to regulations issued by the Superintendency of Finance and effective as of January 1, 2004. | |
(3) | In 2007 the foreign loan category becomes material to the Bank due to the acquisition of Banagrícola. |
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Due in one year | Due after one year through five | Due after five | ||||||||||||||
or less | years | years | Total | |||||||||||||
(Ps million) | ||||||||||||||||
Peso-denominated loans and financial leases: | ||||||||||||||||
Corporate | ||||||||||||||||
Trade financing | 258,280 | 72,872 | 277 | 331,429 | ||||||||||||
Loans funded by domestic development banks | 39,778 | 181,344 | 111,732 | 332,854 | ||||||||||||
Working capital loans | 3,076,590 | 5,601,174 | 1,408,842 | 10,086,606 | ||||||||||||
Credit cards | 3,594 | 30,447 | 6 | 34,047 | ||||||||||||
Overdrafts | 50,536 | — | — | 50,536 | ||||||||||||
Total corporate | 3,428,778 | 5,885,837 | 1,520,857 | 10,835,472 | ||||||||||||
Retail | ||||||||||||||||
Credit cards | 280,556 | 1,483,838 | 2,718 | 1,767,112 | ||||||||||||
Personal loans | 247,317 | 1,992,271 | 65,690 | 2,305,278 | ||||||||||||
Vehicle loans | 66,274 | 1,144,086 | 95,325 | 1,305,685 | ||||||||||||
Overdrafts | 195,063 | — | — | 195,063 | ||||||||||||
Loans funded by domestic development banks | 54,074 | 545,821 | 75,158 | 675,053 | ||||||||||||
Trade financing | 69,245 | 1,485 | — | 70,730 | ||||||||||||
Working capital loans | 1,360,997 | 2,046,584 | 249,202 | 3,656,783 | ||||||||||||
Total retail | 2,273,526 | 7,214,085 | 488,093 | 9,975,704 | ||||||||||||
Financial leases | 211,414 | 3,162,004 | 927,786 | 4,301,204 | ||||||||||||
Mortgage | 37,459 | 140,199 | 1,753,083 | 1,930,741 | ||||||||||||
Total peso-denominated loans and financial leases | 5,951,177 | 16,402,125 | 4,689,819 | 27,043,121 | ||||||||||||
U.S. Dollar-denominated loans and financial leases | ||||||||||||||||
Corporate | ||||||||||||||||
Trade financing | 452,587 | 115,362 | 260,168 | 828,117 | ||||||||||||
Loans funded by domestic development banks | 191,712 | 343,621 | 14,528 | 549,861 | ||||||||||||
Working capital loans | 2,133,535 | 2,777,234 | 1,102,124 | 6,012,893 | ||||||||||||
Credit cards | 576 | 8,536 | — | 9,112 | ||||||||||||
Overdrafts | 8,610 | — | — | 8,610 | ||||||||||||
Total corporate | 2,787,020 | 3,244,753 | 1,376,820 | 7,408,593 | ||||||||||||
Retail | ||||||||||||||||
Credit cards | 21,590 | 231,909 | — | 253,499 | ||||||||||||
Personal loans | 21,801 | 403,366 | 1,048,113 | 1,473,280 | ||||||||||||
Vehicle loans | 236 | 5,857 | 618 | 6,711 | ||||||||||||
Overdrafts | 22,943 | — | — | 22,943 | ||||||||||||
Loans funded by domestic development banks | 29,208 | 10,332 | 4,618 | 44,158 | ||||||||||||
Trade financing | 22,407 | 1,714 | 3,127 | 27,248 | ||||||||||||
Working capital loans | 47,435 | 21,548 | 3,578 | 72,561 | ||||||||||||
Total retail | 165,620 | 674,726 | 1,060,054 | 1,900,400 | ||||||||||||
Financial leases | 15,087 | 276,996 | 105,540 | 397,623 | ||||||||||||
Mortgage | 4,376 | 28,875 | 919,636 | 952,887 | ||||||||||||
Total U.S. dollar-denominated loans and financial leases | 2,972,103 | 4,225,350 | 3,462,050 | 10,659,503 | ||||||||||||
Total loans | 8,923,280 | 20,627,475 | 8,151,869 | 37,702,624 | ||||||||||||
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As of December 31, | ||||
2007(1) | ||||
(Ps million) | ||||
Loans with term of one year or more: | ||||
Variable Rate | ||||
Peso-denominated | Ps | 17,992,284 | ||
U.S. Dollar-denominated | 7,346,727 | |||
Total | 25,339,011 | |||
Fixed Rate | ||||
Peso-denominated | 3,099,660 | |||
U.S. Dollar-denominated | 340,673 | |||
Total | 3,440,333 | |||
Loans with terms of less than a year: | ||||
Peso-denominated | 5,951,177 | |||
U.S. Dollar-denominated | 2,972,103 | |||
Total | 8,923,280 | |||
Total loans | Ps | 37,702,624 | ||
(1) | This figures also include financial leases. |
As of December 31, | ||||||||||||||||||||||||||||||||||||||||
2003 | % | 2004(1) | % | 2005 | % | 2006 | % | 2007 | % | |||||||||||||||||||||||||||||||
Agricultural | Ps | 183,293 | 2.3 | % | Ps | 480,414 | 4.8 | % | Ps | 844,651 | 4.5 | % | Ps | 996,091 | 4.0 | % | Ps | 1,695,451 | 4.5 | % | ||||||||||||||||||||
Mining products and oil | 84,414 | 1.0 | % | 140,137 | 1.4 | % | 273,580 | 1.5 | % | 456,770 | 1.9 | % | 711,836 | 1.9 | % | |||||||||||||||||||||||||
Food, beverage and tobacco | 133,859 | 1.7 | % | 666,602 | 6.6 | % | 1,371,696 | 7.4 | % | 1,665,850 | 6.8 | % | 2,000,330 | 5.3 | % | |||||||||||||||||||||||||
Chemical production | 174 | 0.0 | % | 386,434 | 3.9 | % | 572,000 | 3.0 | % | 805,900 | 3.3 | % | 1,213,368 | 3.2 | % | |||||||||||||||||||||||||
Other industrial and manufacturing products | 1,929,007 | 24.0 | % | 1,762,447 | 17.6 | % | 2,982,246 | 16.0 | % | 3,867,432 | 15.7 | % | 5,558,371 | 14.7 | % | |||||||||||||||||||||||||
Government | 836,832 | 10.4 | % | 1,027,009 | 10.2 | % | 1,226,597 | 6.6 | % | 602,585 | 2.4 | % | 772,539 | 2.1 | % | |||||||||||||||||||||||||
Construction | 180,704 | 2.3 | % | 575,679 | 5.7 | % | 2,980,173 | 16.0 | % | 1,534,816 | 6.2 | % | 2,680,281 | 7.1 | % | |||||||||||||||||||||||||
Trade and tourism | 893,729 | 11.1 | % | 1,760,120 | 17.5 | % | 2,693,730 | 14.5 | % | 2,791,340 | 11.3 | % | 4,713,417 | 12.5 | % | |||||||||||||||||||||||||
Transportation and communications | 408,285 | 5.1 | % | 720,031 | 7.2 | % | 1,496,371 | 8.0 | % | 1,924,129 | 7.8 | % | 2,340,138 | 6.2 | % | |||||||||||||||||||||||||
Public services | 472,451 | 5.9 | % | 469,658 | 4.7 | % | 941,975 | 5.0 | % | 1,183,361 | 4.8 | % | 1,514,595 | 4.0 | % | |||||||||||||||||||||||||
Consumer services | 2,380,162 | 29.6 | % | 1,601,132 | 16.0 | % | 2,134,950 | 11.5 | % | 5,804,779 | 23.6 | % | 10,564,706 | 28.0 | % | |||||||||||||||||||||||||
Commercial services | 526,758 | 6.6 | % | 445,576 | 4.4 | % | 1,108,283 | 6.0 | % | 3,012,521 | 12.2 | % | 3,937,592 | 10.5 | % | |||||||||||||||||||||||||
Total loans | Ps | 8,029,668 | 100.0 | % | Ps | 10,035,239 | 100.0 | % | Ps | 18,626,252 | 100.0 | % | Ps | 24,645,574 | 100.0 | % | Ps | 37,702,624 | 100.0 | % | ||||||||||||||||||||
(1) | Includes financial leases, according to regulations issued by the Superintendency of Finance and effective as of January 1, 2004. |
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• | uncollateralized loans to a single customer or economic group not to exceed 10% of the Bank’s (unconsolidated) Technical Capital (the Bank’s largest uncollateralized loan as of December 31, 2007 is in the amount of Ps 335.76 billion, which represents 6.46% of the Bank’s (unconsolidated with the Bank’s financial subsidiaries) Technical Capital as of that date and is current and performing in accordance with its terms. |
• | collateralized loans to a single customer or economic group not to exceed 25% of the Bank’s (unconsolidated) Technical Capital (the Bank’s largest such loan as of December 31, 2007 is in the amount of Ps 1,010.76 billion, which represents 19.45% of the Bank’s (unconsolidated) Technical Capital as of that date and is current and performing in accordance with its terms); |
• | a loan to a shareholder of the Bank, with a share exceeding 20% of the Bank’s Capital, may not exceed 20% of the Bank’s (unconsolidated) Technical Capital (no shareholder own more than 20% of the Bank as of December 31, 2007); and |
• | a loan to a financial institution may not exceed 30% of the Bank’s (unconsolidated) Technical Capital (the Banks’ largest such loan as of December 31, 2007 is in the amount of Ps 334.91 billion, which represents 6.45% of the Bank’s (unconsolidated) Technical Capital as of that date and is current and performing in accordance with its terms. |
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Maximum loan approval limits | ||||||||||||||||
Unsecured loans (1) | Secured loans | |||||||||||||||
(U.S. dollar) | (Ps million) | (U.S. dollar) | (Ps million) | |||||||||||||
Authorization level: | ||||||||||||||||
Branch Managers and Zone Managers | There is no pre-established limit. Approval limits are set by senior management, and cannot exceed the limits set for Regional Managers. | There is no pre-established limit. Approval limits are set by senior management, and cannot exceed the limits set for Regional Managers. | ||||||||||||||
Regional Managers Corporate Banking | 1,899,084 | 3,826 | 3,165,141 | 6,377 | ||||||||||||
Small and Medium Sized Enterprises and Personal Banking Regional Managers | 1,302,884 | 2,625 | 2,171,477 | 4,375 | ||||||||||||
Small and Medium Sized Enterprises and Personal Banking Vice Presidents(2) | 14,423,167 | 29,059 | 24,038,612 | 48,432 | ||||||||||||
Vice President of Mortgage Banking | 7,211,583 | 14,529 | 12,019,316 | 24,216 | ||||||||||||
Corporate Banking and Financial Vice Presidents(2) | 14,423,167 | 29,059 | 24,038,612 | 48,432 | ||||||||||||
Vice President of Human Resources | 216,347 | 435 | 360,579 | �� | 726 | |||||||||||
President | 14,423,167 | 29,059 | 24,038,612 | 48,432 | ||||||||||||
Credit Committee | All loans, other than those requiring the approval of the Board of Directors, within the limits established by law. | All loans, other than those requiring the approval of the Board of Directors, within the limits established by law. |
(1) | Includes loans with a personal guarantee. | |
(2) | This approval limit corresponds to a percentage of the Bank’s Technical Capital. Vice Presidents approval limits are established depending on the borrower credit risk level. The amounts set in the table above are established to grant loans to borrowers with the lowest credit risk level. The approval limits decrease as the borrower credit risk level increases. |
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• | the expected ability of payment of a debtor and co-debtor, or the project to be financed, analyzing the income flow and expenses; |
• | the debtor’s solvency, through variables such as the level of indebtedness and the quality and composition of the debtor’s and/or project’s assets, liabilities, equity and contingencies; |
• | information on the debtor’s current and past compliance with obligations; |
• | the timely payment of all installments as well as the financial and credit-based history as shown by risk controls and credit risk bureaus of the debtor or any other relevant source; |
• | the number of times that the loan has been restructured and the nature of the respective restructuring(s); |
• | the possible effects of the financial risks that the cash flow of the debtor and/or the project to be financed may be exposed to including: (i) possible market gaps of currencies, maturities and interest rates in the balance sheet structure and in off-balance sheet operations, such as financial derivatives; (ii) for those loans with variable rates or rates indexed to UVR or another index, projections and possible scenarios for the evolution of payments according to estimates of interest rates, foreign exchange rates, inflation, and other variables that may directly affect the payment of debt; and (iii) for loans denominated in foreign currencies, the market risk derived from the volatility of the corresponding exchange rates and its possible impact on the debtor’s ability to pay; for loans made abroad, an in-house and market analysis of the risk of the country where the debtor is domiciled to identify the risks of transfer and exchange of the currencies required to serve the loan and the legal, operating and strategic risks of spreading the ability to pay of the debtor or the project to be financed may be exposed to. |
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• | Consumer loans are loans granted to individuals for the purpose of financing the acquisition of consumer goods or the payment of services for non-commercial or non-corporate objects. |
• | Small business loans are loans granted to very small corporations with indebtedness levels with the corresponding entity not higher than 25 SMMLV (Ps 10.8 million) (a small corporation is every unit of economic exploitation, whether individual or corporation, in entrepreneurial, farming and livestock, industrial, commercial or utilities activities, rural or urban, with a staff no larger than 10 workers and with total assets lower than 500 SMMLV (Ps 217.3 million)). |
• | Mortgages loans: These are loans, regardless of value, granted to individuals for the purchase of new or existing housing or to build a home, all in accordance with Law 546 of 1999. These loans include loans denominated in UVR or local currency, that are guaranteed by a senior mortgage on the property and that are financed with a total repayment term of 5 to 30 years. |
• | Commercial loans: are loans and financial leases that are granted to individuals or companies in order to carry out organized economic activities; and not classified as small business loans). |
Loan Portfolio by Type of Loan | ||||||||||||||||||||
As of December 31, | ||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | ||||||||||||||||
(Ps million) | ||||||||||||||||||||
Commercial Loans | Ps | 6,624,494 | Ps | 7,353,956 | Ps | 11,949,501 | Ps | 16,028,505 | Ps | 23,397,058 | ||||||||||
Consumer Loans | 1,273,159 | 1,655,066 | 2,437,727 | 3,587,260 | 6,593,211 | |||||||||||||||
Small Business Loans | 83,854 | 90,000 | 115,031 | 91,078 | 129,900 | |||||||||||||||
Financial Leases(1) | — | 880,110 | 2,660,556 | 3,553,286 | 4,698,827 | |||||||||||||||
Mortgage | 48,161 | 56,107 | 1,463,437 | 1,385,445 | 2,883,628 | |||||||||||||||
Total Loans and Financial Leases | 8,029,668 | 10,035,239 | 18,626,252 | 24,645,574 | 37,702,624 | |||||||||||||||
Allowance for Loans and Financial Lease Losses | 387,263 | 434,378 | 705,882 | 834,183 | 1,457,151 | |||||||||||||||
Total Loans and Financial Leases, Net | Ps | 7,642,405 | Ps | 9,600,861 | Ps | 17,920,370 | Ps | 23,811,391 | Ps | 36,245,473 | ||||||||||
(1) | Includes financial leases, according to regulations issued by Superintendency of Finance and effective as of January 1, 2004. |
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Category | Consumer | |
“A” Normal Risk | current – and up to 1 month past due | |
“B” Acceptable Risk, Above Normal | 1-2 months past due | |
“C” Appreciable Risk | 2-3 months past due | |
“D” Significant Risk | 3-6 months past due | |
“E” Risk of Unrecoverability | over 6 months past due |
Category | Small Business Loans | Mortgage | ||
“A” Normal Risk | current – and up to 1 month past due | current – and up to 2 months past due | ||
“B” Acceptable Risk, Above Normal | 1-2 months past due | 2-5 months past due | ||
“C” Appreciable Risk | 2-3 months past due | 5-12 months past due | ||
“D” Significant Risk | 3-4 months past due | 12-18 months past due | ||
“E” Risk of Unrecoverability | over 4 months past due | over 18 months past due |
Category | Commercial | |
“A” Normal Risk | current – and up to 1 month past due | |
“B” Acceptable Risk, Above Normal | 1-3 months past due | |
“C” Appreciable Risk | 3-6 months past due | |
“D” Significant Risk | 6-12 months past due | |
“E” Risk of Unrecoverability | over 12 months past due |
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Category | Commercial | |
“AA” | current – and up to 1 month past due | |
“A” | 1-2 months past due | |
“BB” | 2-3 months past due | |
“B” | 3-4 months past due | |
“CC” | 4-5 months past due | |
Risk of Unrecoverability | over 5 months past due |
As of December 31(1), | ||||||||||||||||||||||||||||||||||||||||
2003 | % | 2004 | % | 2005 | % | 2006 | % | 2007 | % | |||||||||||||||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||||||||||||||||||
“A” Normal | Ps | 7,288,273 | 90.8 | % | Ps | 9,327,398 | 93.0 | % | Ps | 17,359,081 | 93.2 | % | Ps | 23,310,545 | 94.6 | % | Ps | 35,397,503 | 93.9 | % | ||||||||||||||||||||
“B” Subnormal | 345,297 | 4.3 | % | 320,959 | 3.2 | % | 638,131 | 3.4 | % | 708,774 | 2.9 | % | 1,135,022 | 3.0 | % | |||||||||||||||||||||||||
“C” Deficient | 109,615 | 1.4 | % | 93,175 | 0.9 | % | 202,934 | 1.1 | % | 209,386 | 0.8 | % | 300,085 | 0.8 | % | |||||||||||||||||||||||||
“D” Doubtful Recovery | 196,075 | 2.4 | % | 204,344 | 2.0 | % | 252,635 | 1.4 | % | 242,763 | 1.0 | % | 604,034 | 1.6 | % | |||||||||||||||||||||||||
“E” Unrecoverable | 90,408 | 1.1 | % | 89,363 | 0.9 | % | 173,471 | 0.9 | % | 174,106 | 0.7 | % | 265,980 | 0.7 | % | |||||||||||||||||||||||||
Total loans and financial leases | Ps | 8,029,668 | 100.0 | % | Ps | 10,035,239 | 100.0 | % | Ps | 18,626,252 | 100.0 | % | Ps | 24,645,574 | 100.0 | % | Ps | 37,702,624 | 100.0 | % | ||||||||||||||||||||
Loans classified as “C”, “D” and “E” as a percentage of total loans | 4.9 | % | 3.9 | % | 3.4 | % | 2.5 | % | 3.1 | % |
(1) | Includes financial leases, according to regulations issued by the Superintendency of Finance and effective as of January 1, 2004. |
Type of loan and financial lease | Arrears in excess of: | |
Mortgage | 2 months | |
Consumer | 2 months | |
Small business loans | 1 month | |
Commercial | 3 months |
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As of December 31, | ||||||||||||||||||||||||||||||||||||||||
2003 | % | 2004(3) | % | 2005(4) | % | 2006 | % | 2007 | % | |||||||||||||||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||||||||||||||||||
Performing past due loans:(1) | ||||||||||||||||||||||||||||||||||||||||
Consumer loans past due from 31 to 60 days | Ps | 24,899 | 57.3 | % | Ps | 21,987 | 38.7 | % | Ps | 34,630 | 19.7 | % | Ps | 62,201 | 26.4 | % | Ps | 131,824 | 30.1 | % | ||||||||||||||||||||
Small loans past due from 31 to 60 days(4) | 2,054 | 4.7 | % | 1,845 | 3.2 | % | — | 0.0 | % | — | 0.0 | % | — | 0.0 | % | |||||||||||||||||||||||||
Commercial loans past due from 31 to 90 days | 16,518 | 38.0 | % | 26,398 | 46.5 | % | 46,485 | 26.5 | % | 74,577 | 31.8 | % | 164,163 | 37.4 | % | |||||||||||||||||||||||||
Mortgage loans past due from 31 to 60/90/120 days(4) | — | 0.0 | % | — | 0.0 | % | 84,156 | 47.9 | % | 62,919 | 26.8 | % | 81,523 | 18.6 | % | |||||||||||||||||||||||||
Financial leases past due from 31 to 60/90 days (2)(3) | — | 0.0 | % | 6,593 | 11.6 | % | 10,301 | 5.9 | % | 35,150 | 15.0 | % | 61,055 | 13.9 | % | |||||||||||||||||||||||||
Total performing past due loans and Financial leases(3) | 43,471 | 100.0 | % | 56,823 | 100.0 | % | 175,572 | 100.0 | % | 234,847 | 100.0 | % | 438,565 | 100.0 | % | |||||||||||||||||||||||||
Non-performing past due loans: | ||||||||||||||||||||||||||||||||||||||||
Consumer loans past due more than 61 days | 25,069 | 32.9 | % | 40,882 | 46.2 | % | 66,121 | 24.0 | % | 114,101 | 34.1 | % | 234,659 | 35.2 | % | |||||||||||||||||||||||||
Small loans past due more than 31 days(4) | 3,040 | 4.0 | % | 3,781 | 4.3 | % | 5,979 | 2.1 | % | 10,003 | 3.0 | % | 14,630 | 2.2 | % | |||||||||||||||||||||||||
Commercial loans past due more than 90 days(2) | 48,069 | 63.1 | % | 40,171 | 45.4 | % | 114,496 | 41.5 | % | 133,987 | 40.0 | % | 272,031 | 40.8 | % | |||||||||||||||||||||||||
Mortgage loans past due more than 60/90/120 days(4) | 4 | 0.0 | % | 37 | 0.0 | % | 77,394 | 28.1 | % | 65,187 | 19.5 | % | 86,103 | 12.9 | % | |||||||||||||||||||||||||
Financial leases past due from 31 to 60/90 days(3) | — | 0.0 | % | 3,580 | 4.1 | % | 11,874 | 4.3 | % | 11,210 | 3.4 | % | 58,945 | 8.9 | % | |||||||||||||||||||||||||
Total non-performing past due loans and Financial leases(3) | 76,182 | 100.0 | % | 88,451 | 100.0 | % | 275,864 | 100.0 | % | 334,488 | 100.0 | % | 666,368 | 100.0 | % | |||||||||||||||||||||||||
Total past due loans and Financial leases(3) | Ps | 119,653 | Ps | 145,274 | Ps | 451,436 | Ps | 569,335 | Ps | 1,104,933 | ||||||||||||||||||||||||||||||
Total non-performing past due loans and Financial leases(3) | 76,182 | 88,451 | 275,864 | 334,488 | 666,368 | |||||||||||||||||||||||||||||||||||
Foreclosed assets | 162,766 | 153,071 | 236,536 | 193,004 | 234,116 | |||||||||||||||||||||||||||||||||||
Other accounts receivable more than 180 days past due | 25,848 | 5,813 | 28,980 | 29,146 | 38,182 | |||||||||||||||||||||||||||||||||||
Total non-performing assets | Ps | 264,796 | Ps | 247,335 | Ps | 541,380 | Ps | 556,638 | Ps | 938,666 | ||||||||||||||||||||||||||||||
Allowance for loan and financial leases losses(3) | (387,263 | ) | (434,378 | ) | (705,882 | ) | (834,183 | ) | (1,457,151 | ) | ||||||||||||||||||||||||||||||
Allowance for estimated losses on foreclosed assets | (135,090 | ) | (140,865 | ) | (205,176 | ) | (174,393 | ) | (201,822 | ) | ||||||||||||||||||||||||||||||
Allowance for accounts receivable and accrued interest losses | (26,182 | ) | (18,807 | ) | (40,727 | ) | (34,936 | ) | (69,956 | ) | ||||||||||||||||||||||||||||||
Loans at least one day past due as a percentage of total loans(3) | 1.5 | % | 1.5 | % | 2.5 | % | 2.3 | % | 2.9 | % | ||||||||||||||||||||||||||||||
Allowance for loan losses as a percentage of loans at least one day past due(3) | 323.7 | % | 299.0 | % | 156.4 | % | 146.5 | % | 131.9 | % | ||||||||||||||||||||||||||||||
Allowance for loan losses as a percentage of loans classified as “C”, “D” and “E”(3) | 97.8 | % | 112.3 | % | 112.2 | % | 133.2 | % | 124.5 | % | ||||||||||||||||||||||||||||||
Percentage of performing loans to total loans(3) | 99.1 | % | 99.1 | % | 98.5 | % | 98.6 | % | 98.2 | % |
(1) | Performing past due loans are loans upon which the Bank continues to recognize income although interest has not been received for the periods indicated. Once interest is unpaid on accrual loans for a longer period than is specified above, the loan is classified as non-performing. Under Colombian Banking regulations, a loan is past due when it is at least 31 days past the actual due date. Bancolombia (unconsolidated), Sufinanciamiento, Patrimonio Autónomo C.V. Sufinanciamiento, Bancolombia Panama and Bancolombia Cayman, adopted a policy, in which all loans and financial leasing operations of any type, with the exception of mortgage loans that are more than 30 days past due, cease to accumulate interest on the statement of operations and instead are recorded in the memorandum accounts until such time the client proceeds with their payment. |
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(2) | The Consumer financial leases are due from 31 to 60 days and the commercial financial leases are due from 31 to 90 days. | |
(3) | Includes financial leases, according to regulations issued by the Superintendency of Finance and effective as of January 1, 2004. It also includes allowance for performing and non-performing loans. | |
(4) | Effective as of January 1, 2005, External Circular 052 of 2004 of the Superintendency of Finance modified the classification between performing and non — performing loans. According to the new regulation mortgage and small business loans are classified as non performing when are past due more than 60 and 30 days, respectively. This change in the regulation applies for fiscal years 2005, 2006 and 2007. For fiscal years ended on December 31, 2003 and 2004, mortgage and small business loans are classified as nonperforming when are past due more than 120 and 60 days, respectively. |
As of December 31, | ||||||||||||||||||||||||||||||||||||||||
2003 | % | 2004 | % | 2005 | % | 2006 | % | 2007 | % | |||||||||||||||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||||||||||||||
Trade financing | Ps | 2,841 | 2.3 | % | Ps | 3,862 | 2.7 | % | Ps | 9,728 | 2.2 | % | Ps | 18,218 | 3.2 | % | Ps | 14,171 | 1.3 | % | ||||||||||||||||||||
Loans funded by domestic development banks | 1,149 | 1.0 | % | 1,705 | 1.2 | % | 7,463 | 1.7 | % | 6,820 | 1.2 | % | 7,842 | 0.7 | % | |||||||||||||||||||||||||
Working capital loans | 30,706 | 25.7 | % | 21,211 | 14.6 | % | 55,354 | 12.2 | % | 67,267 | 11.7 | % | 166,135 | 15.1 | % | |||||||||||||||||||||||||
Credit cards | 136 | 0.1 | % | 1,273 | 0.9 | % | 1,616 | 0.4 | % | 2,669 | 0.5 | % | 507 | 0.0 | % | |||||||||||||||||||||||||
Overdrafts | 1,032 | 0.9 | % | 1,668 | 1.1 | % | 4,177 | 0.9 | % | 7,716 | 1.4 | % | 1,972 | 0.2 | % | |||||||||||||||||||||||||
Total corporate | 35,864 | 30.0 | % | 29,719 | 20.5 | % | 78,338 | 17.4 | % | 102,690 | 18.0 | % | 190,627 | 17.3 | % | |||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||||||||||
Credit cards | 12,204 | 10.2 | % | 13,785 | 9.5 | % | 25,967 | 5.8 | % | 40,307 | 7.1 | % | 151,522 | 13.7 | % | |||||||||||||||||||||||||
Personal loans | 32,876 | 27.5 | % | 43,945 | 30.2 | % | 63,008 | 14.0 | % | 113,514 | 19.9 | % | 168,693 | 15.3 | % | |||||||||||||||||||||||||
Vehicle loans | 6,453 | 5.4 | % | 9,697 | 6.7 | % | 23,829 | 5.3 | % | 41,641 | 7.3 | % | 74,495 | 6.7 | % | |||||||||||||||||||||||||
Overdrafts | 7,967 | 6.6 | % | 8,637 | 5.9 | % | 10,234 | 2.2 | % | 11,771 | 2.1 | % | 28,253 | 2.6 | % | |||||||||||||||||||||||||
Loans funded by domestic development banks | 5,299 | 4.4 | % | 6,382 | 4.4 | % | 8,391 | 1.9 | % | 12,166 | 2.1 | % | 21,264 | 1.9 | % | |||||||||||||||||||||||||
Trade financing | 355 | 0.3 | % | 156 | 0.1 | % | 658 | 0.1 | % | 1,403 | 0.2 | % | 3,404 | 0.3 | % | |||||||||||||||||||||||||
Working capital loans | 18,084 | 15.1 | % | 22,743 | 15.7 | % | 41,000 | 9.0 | % | 57,976 | 10.3 | % | 140,842 | 12.8 | % | |||||||||||||||||||||||||
Total retail | 83,238 | 69.5 | % | 105,345 | 72.5 | % | 173,087 | 38.3 | % | 278,778 | 49.0 | % | 588,473 | 53.3 | % | |||||||||||||||||||||||||
Financial Leases(1) | — | 0.0 | % | 10,173 | 7.0 | % | 22,175 | 4.9 | % | 46,359 | 8.1 | % | 119,999 | 10.9 | % | |||||||||||||||||||||||||
Mortgage | 551 | 0.5 | % | 37 | 0.0 | % | 177,836 | 39.4 | % | 141,508 | 24.9 | % | 205,834 | 18.5 | % | |||||||||||||||||||||||||
Total past due loans | Ps | 119,653 | 100.0 | % | Ps | 145,274 | 100.0 | % | Ps | 451,436 | 100.0 | % | Ps | 569,335 | 100.0 | % | Ps | 1,104,933 | 100.0 | % | ||||||||||||||||||||
(1) | Includes financial leases, according to regulations issued by the Superintendency of Finance and effective as of January 1, 2004. |
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As of December 31, | ||||||||||||||||||||||||||||||||||||||||
2003 | % | 2004 | % | 2005 | % | 2006 | % | 2007 | % | |||||||||||||||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||||||||||||||||||
Secured | ||||||||||||||||||||||||||||||||||||||||
Current | Ps | 2,596,226 | 32.3 | % | Ps | 3,950,303 | 39.4 | % | Ps | 7,947,554 | 42.7 | % | Ps | 10,762,717 | 43.7 | % | Ps | 16,923,998 | 44.9 | % | ||||||||||||||||||||
Past due loans from 31 to 90 days (commercial) | 10,935 | 0.1 | 16,295 | 0.2 | 30,193 | 0.2 | 41,594 | 0.2 | 93,309 | 0.2 | ||||||||||||||||||||||||||||||
Past due financial leases 31 to 90 days (commercial) (2) | — | 0.0 | 6,514 | 0.1 | 9,767 | 0.1 | 32,993 | 0.1 | 57,284 | 0.2 | ||||||||||||||||||||||||||||||
Past due loans from 31 to 60 days (consumer) | 5,690 | 0.1 | 7,027 | 0.1 | 8,946 | 0.0 | 11,910 | 0.1 | 27,429 | 0.1 | ||||||||||||||||||||||||||||||
Past due financial leases from 31 to 60 days (consumer) (2) | — | 0.0 | 79 | 0.0 | 534 | 0.0 | 2,157 | 0.0 | 3,771 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 31 to 60 days (small business loans) | 466 | 0.0 | 665 | 0.0 | 712 | 0.0 | 1,054 | 0.0 | 1,895 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 31 to 120 days (mortgage) | — | 0.0 | — | 0.0 | 131,268 | 0.7 | 99,885 | 0.4 | 122,440 | 0.3 | ||||||||||||||||||||||||||||||
Past due loans from 61 to 90 days (consumer) | 2,020 | 0.0 | 3,441 | 0.0 | 4,336 | 0.0 | 5,150 | 0.0 | 12,913 | 0.0 | ||||||||||||||||||||||||||||||
Past due financial leases from 61 to 90 days (consumer) (2) | — | 0.0 | 78 | 0.0 | 134 | 0.0 | 770 | 0.0 | 655 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 61 to 90 days (small business loans) | 315 | 0.1 | 411 | 0.0 | 445 | 0.0 | 644 | 0.0 | 942 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 91 to 180 days (commercial) | 5,751 | 0.1 | 8,730 | 0.1 | 14,306 | 0.1 | 19,582 | 0.1 | 36,358 | 0.1 | ||||||||||||||||||||||||||||||
Past due financial leases from 91 to 180 days (commercial) (2) | — | 0.0 | 1,845 | 0.0 | 4,900 | 0.0 | 4,143 | 0.0 | 43,618 | 0.1 | ||||||||||||||||||||||||||||||
Past due loans from 91 to 180 days (consumer) | 2,995 | 0.1 | 6,074 | 0.1 | 5,380 | 0.0 | 6,938 | 0.0 | 16,080 | 0.0 | ||||||||||||||||||||||||||||||
Past due financial leases from 91 to 180 days (consumer) (2) | — | 0.0 | 83 | 0.0 | 344 | 0.0 | 418 | 0.0 | 644 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 91 to 120 days (small business loans) | 476 | 0.0 | 926 | 0.0 | 1,130 | 0.0 | 2,274 | 0.0 | 4,319 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 121 to 180 days (mortgage) | 4 | 0.0 | — | 0.0 | 13,631 | 0.1 | 11,248 | 0.1 | 20,627 | 0.1 | ||||||||||||||||||||||||||||||
Past due loans from 181 to 360 days (commercial) | 8,995 | 0.1 | 6,156 | 0.1 | 17,938 | 0.1 | 21,733 | 0.1 | 25,277 | 0.1 | ||||||||||||||||||||||||||||||
Past due financial leases from 181 to 360 days (commercial) (2) | — | 0.0 | 924 | 0.0 | 3,304 | 0.0 | 3,946 | 0.0 | 6,792 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 181 days to 360 days (consumer) | 2,589 | 0.0 | 3,348 | 0.0 | 4,487 | 0.0 | 5,118 | 0.0 | 16,179 | 0.0 | ||||||||||||||||||||||||||||||
Past due financial leases from 181 to 360 days (consumer) (2) | — | 0.0 | 76 | 0.0 | 149 | 0.0 | 164 | 0.0 | 1,149 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 121 to 360 days (small business loans) | — | 0.0 | — | 0.0 | — | 0.0 | — | 0.0 | — | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 181 days to 360 days (mortgage) | — | 0.0 | 37 | 0.0 | 16,651 | 0.1 | 16,973 | 0.1 | 24,559 | 0.1 | ||||||||||||||||||||||||||||||
Past due loans more than 360 days | 17,217 | 0.2 | 9,661 | 0.1 | 24,636 | 0.1 | 33,676 | 0.1 | 82,105 | 0.2 | ||||||||||||||||||||||||||||||
Past due financial leases more than 360 days(2) | — | 0.0 | 573 | 0.0 | 3,043 | 0.0 | 1,769 | 0.0 | 6,087 | 0.0 | ||||||||||||||||||||||||||||||
Total | Ps | 2,653,679 | 33.1 | % | Ps | 4,023,246 | 40.2 | % | Ps | 8,243,788 | 44.2 | % | Ps | 11,086,856 | 45.0 | % | Ps | 17,528,430 | 46.4 | % | ||||||||||||||||||||
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As of December 31, | ||||||||||||||||||||||||||||||||||||||||
2003 | % | 2004 | % | 2005 | % | 2006 | % | 2007 | % | |||||||||||||||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||||||||||||||||||
Unsecured(1) | ||||||||||||||||||||||||||||||||||||||||
Current | Ps | 5,313,789 | 66.2 | % | Ps | 5,939,662 | 59.2 | % | Ps | 10,227,262 | 55.0 | % | Ps | 13,313,522 | 54.0 | % | Ps19,673,693 | 52.2 | % | |||||||||||||||||||||
Past due loans from 31 to 90 days (commercial) | 5,583 | 0.1 | 10,103 | 0.1 | 16,292 | 0.1 | 32,983 | 0.1 | 70,854 | 0.2 | ||||||||||||||||||||||||||||||
Past due loans from 31 to 60 days (consumer) | 19,209 | 0.2 | 14,960 | 0.1 | 25,684 | 0.1 | 50,291 | 0.2 | 104,395 | 0.3 | ||||||||||||||||||||||||||||||
Past due loans from 31 to 60 days (small business loans) | 1,588 | 0.0 | 1,180 | 0.0 | 923 | 0.0 | 1,879 | 0.0 | 1,891 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 61 to 90 days (consumer) | — | 0.0 | 7,115 | 0.1 | 13,678 | 0.1 | 23,495 | 0.1 | 49,112 | 0.1 | ||||||||||||||||||||||||||||||
Past due loans from 61 to 90 days (small business loans) | 793 | 0.0 | 557 | 0.0 | 664 | 0.0 | 943 | 0.0 | 1,022 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 91 to 180 days (commercial) | 2,980 | 0.0 | 3,980 | 0.0 | 27,230 | 0.1 | 10,206 | 0.0 | 27,896 | 0.1 | ||||||||||||||||||||||||||||||
Past due loans from 91 to 180 days (consumer) | 9,289 | 0.1 | 12,490 | 0.1 | 21,809 | 0.1 | 36,662 | 0.2 | 80,027 | 0.2 | ||||||||||||||||||||||||||||||
Past due loans from 91 to 120 days (small business loans) | 1,456 | 0.0 | 1,887 | 0.0 | 2,105 | 0.0 | 3,209 | 0.0 | 4,561 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 181 to 360 days (commercial) | 8,889 | 0.1 | 6,863 | 0.1 | 19,017 | 0.1 | 21,957 | 0.1 | 60,490 | 0.2 | ||||||||||||||||||||||||||||||
Past due loans from 181 days to 360 days(consumer) | 8,176 | 0.1 | 8,414 | 0.1 | 16,431 | 0.1 | 36.738 | 0.2 | 60,348 | 0.2 | ||||||||||||||||||||||||||||||
Past due loans more than 360 days | 4,237 | 0.1 | 4,782 | 0.0 | 11,369 | 0.1 | 26,833 | 0.1 | 39,905 | 0.1 | ||||||||||||||||||||||||||||||
Total | Ps | 5,375,989 | 66.9 | % | Ps | 6,011,993 | 59.8 | % | Ps | 10,382,464 | 55.8 | % | Ps | 13,558,718 | 55.0 | % | Ps | 20,174,194 | 53.6 | % | ||||||||||||||||||||
Total current loans and financial leases(2) | Ps | 7,910,015 | 98.5 | % | Ps | 9,889,965 | 98.6 | % | Ps | 18,174,816 | 97.7 | % | Ps | 24,076,239 | 97.7 | % | Ps | 36,597,691 | 97.1 | % | ||||||||||||||||||||
Past due loans from 31 to 90 days (commercial) | 16,518 | 0.2 | 26,398 | 0.3 | 46,485 | 0.2 | 74,577 | 0.3 | 164,163 | 0.4 | ||||||||||||||||||||||||||||||
Past due financial leases from 31 to 90 days (commercial) (2) | — | 0.0 | 6,514 | 0.1 | 9,767 | 0.1 | 32,993 | 0.1 | 57,284 | 0.2 | ||||||||||||||||||||||||||||||
Past due loans from 31 to 60 days (consumer) | 24,899 | 0.3 | 21,987 | 0.2 | 34,630 | 0.2 | 62,201 | 0.3 | 131,824 | 0.3 | ||||||||||||||||||||||||||||||
Past due financial leases from 31 to 60 days (consumer) (2) | — | 0.0 | 79 | 0.0 | 534 | 0.0 | 2,157 | 0.0 | 3,771 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 31 to 60 days (small business loans) | 2,054 | 0.0 | 1,845 | 0.0 | 1,635 | 0.0 | 2,933 | 0.0 | 3,786 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 31 to 120 days (mortgage) | — | 0.0 | — | 0.0 | 131,268 | 0.7 | 99,885 | 0.4 | 122,440 | 0.3 | ||||||||||||||||||||||||||||||
Past due loans from 61 to 90 days (consumer) | 2,020 | 0.0 | 10,556 | 0.1 | 18,014 | 0.1 | 28,645 | 0.1 | 62,025 | 0.2 | ||||||||||||||||||||||||||||||
Past due financial leases from 61 to 90 days (consumer) (2) | — | 0.0 | 78 | 0.0 | 134 | 0.0 | 770 | 0.0 | 655 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 61 to 90 days (small business loans) | 1,108 | 0.0 | 968 | 0.0 | 1,109 | 0.0 | 1,587 | 0.0 | 1,964 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 91 to 180 days (commercial) | 8,731 | 0.1 | 12,710 | 0.1 | 41,536 | 0.2 | 29,788 | 0.1 | 64,254 | 0.2 | ||||||||||||||||||||||||||||||
Past due financial leases from 91 to 180 days (commercial) (2) | — | 0.0 | 1,845 | 0.0 | 4,900 | 0.0 | 4,143 | 0.0 | 43,618 | 0.1 | ||||||||||||||||||||||||||||||
Past due loans from 91 to 180 days (consumer) | 12,284 | 0.2 | 18,564 | 0.2 | 27,189 | 0.1 | 43,600 | 0.2 | 96,107 | 0.3 | ||||||||||||||||||||||||||||||
Past due financial leases from91 to 180 days (consumer) (2) | — | 0.0 | 83 | 0.0 | 344 | 0.0 | 418 | 0.0 | 644 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 91 to 120 days (small business loans) | 1,932 | 0.0 | 2,813 | 0.0 | 3,235 | 0.0 | 5,483 | 0.0 | 8,880 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 121 to 180 days (mortgage) | 4 | 0.0 | — | 0.0 | 13,631 | 0.1 | 11,248 | 0.0 | 20,627 | 0.1 | ||||||||||||||||||||||||||||||
Past due loans from 181 to 360 days (commercial) | 17,884 | 0.2 | 13,019 | 0.2 | 36,955 | 0.2 | 43,690 | 0.2 | 85,767 | 0.2 | ||||||||||||||||||||||||||||||
Past due financial leases from 181 to 360 days (commercial) (2) | — | 0.0 | 924 | 0.0 | 3,304 | 0.0 | 3,946 | 0.0 | 6,792 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 181 days to 360 days (consumer) | 10,765 | 0.1 | 11,762 | 0.1 | 20,918 | 0.1 | 41,856 | 0.2 | 76,527 | 0.2 |
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As of December 31, | ||||||||||||||||||||||||||||||||||||||||
2003 | % | 2004 | % | 2005 | % | 2006 | % | 2007 | % | |||||||||||||||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||||||||||||||||||
Past due financial leases from 181 to 360 days (consumer) (2) | — | 0.0 | 76 | 0.0 | 149 | 0.0 | 164 | 0.0 | 1,149 | 0.0 | ||||||||||||||||||||||||||||||
Past due loans from 181 days to 360 days (mortgage) | — | 0.0 | 37 | 0.0 | 16,651 | 0.1 | 16,973 | 0.1 | 24,559 | 0.1 | ||||||||||||||||||||||||||||||
Total past due loans more than 360 days | 21,454 | 0.4 | 14,443 | 0.1 | 36,005 | 0.2 | 60,509 | 0.3 | 122,010 | 0.3 | ||||||||||||||||||||||||||||||
Total past due financial leases more than 360 days(2) | — | 0.0 | 573 | 0.0 | 3,043 | 0.0 | 1,769 | 0.0 | 6,087 | 0.0 | ||||||||||||||||||||||||||||||
Total past due loans and financial leases(2) | 119,653 | 1.5 | 145,274 | 1.4 | 451,436 | 2.3 | 569,335 | 2.3 | 1,104,933 | 2.9 | ||||||||||||||||||||||||||||||
Total gross loans and financial leases(2) | 8,029,668 | 100.0 | 10,035,239 | 100.0 | 18,626,252 | 100 | 24,645,574 | 100 | % | 37,702,624 | 100 | % | ||||||||||||||||||||||||||||
Allowance for loan and financial lease losses(2) | (387,263 | ) | (4.8 | ) | (434,378 | ) | (4.3 | ) | (705,882 | ) | (3.8 | ) | (834,183 | ) | (3.4 | ) | (1,457,151 | ) | (3.9 | ) | ||||||||||||||||||||
Total loans and financial leases, net(2) | Ps | 7,642,405 | 95.2 | % | Ps | 9,600,861 | 95.7 | % | Ps | 17,920,370 | 96.2 | % | Ps | 23,811,391 | 96.6 | % | Ps | 36,245,473 | 96.1 | % | ||||||||||||||||||||
(1) | Includes loans with personal guarantees. | |
(2) | Includes financial leases, according to regulations issued by the Superintendency of Finance and effective as of January 1, 2004. |
As of December 31, | ||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | ||||||||||||||||
(Ps million) | ||||||||||||||||||||
Non-performing loans | Ps | 76,182 | Ps | 88,451 | Ps | 275,864 | Ps | 334,488 | Ps | 666,368 | ||||||||||
Restructured loans, net | Ps | 583,056 | Ps | 455,802 | Ps | 460,183 | Ps | 650,276 | Ps | 884,831 |
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Minimum provision percentage net | ||||||||
Category | of guarantees | Minimum provision percentage | ||||||
A | 0 | % | 1 | % | ||||
B | 1 | % | 2.20 | % |
Category | Additional Provision | |||
A | 0.60 | % | ||
B | 1.80 | % |
1. | Probability of Default (PD): This corresponds to the probability of the debtors belonging to a specific portfolio of commercial loans defaulting on their obligations in a period of twelve (12) months (according to the cases described in subsection b of section 1.3.3.1 of Chapter II of the Basic Accounting Circular). The probability of default is defined according to matrixes issued by the Superintendency of Finance, which are updated every year in May and come into full force and effect as of the following July, based on the terms and conditions specified by the Superintendency. |
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Matrix B | Non-fulfillment | |||||||||||||||
Commercial | Corporate | Small Business | Medium Business | Individuals | ||||||||||||
AA | 2.19 | % | 7.52 | % | 4.19 | % | 8.22 | % | ||||||||
A | 3.54 | % | 8.64 | % | 6.32 | % | 9.41 | % | ||||||||
BB | 14.13 | % | 20.26 | % | 18.49 | % | 22.36 | % | ||||||||
B | 15.22 | % | 24.15 | % | 21.45 | % | 25.81 | % | ||||||||
CC | 23.35 | % | 33.57 | % | 26.70 | % | 37.01 | % | ||||||||
Non-fulfillment | 100 | % | 100 | % | 100 | % | 100 | % |
2. | The loss given default (LGD): This is defined as the economic deterioration sustained by a company should any of the events of default, as referred to in subsection b of section 1.3.3.1 of Chapter II of the Basic Accounting Circular, arise. The LGD for debtors classified in the default category would suffer a gradual increase according to the amount of days lapsing after being classified in said category. The LGD per type of guarantee is as follows: |
Days after | Days after | |||||||||||||||||||
non- | New | non- | New | |||||||||||||||||
Type of Collateral | LGD | fulfillment | LGD | fulfillment | LGD | |||||||||||||||
Inadmissible guarantee | 55 | % | 270 | 70 | % | 540 | 100 | % | ||||||||||||
Subordinate loans | 75 | % | 270 | 90 | % | 540 | 100 | % | ||||||||||||
Admissible financial collateral | 0-12 | % | — | — | — | — | ||||||||||||||
Residential and commercial real estate | 40 | % | 540 | 70 | % | 1080 | 100 | % | ||||||||||||
Leased real estate | 35 | % | 540 | 70 | % | 1080 | 100 | % | ||||||||||||
Leased assets different from real estate | 45 | % | 360 | 80 | % | 720 | 100 | % | ||||||||||||
Other collaterals | 50 | % | 360 | 80 | % | 720 | 100 | % | ||||||||||||
Collection rights | 45 | % | 360 | 80 | % | 720 | 100 | % | ||||||||||||
No guarantee | 55 | % | 210 | 80 | % | 420 | 100 | % |
3. | Exposure at Default (EAD): Defined as the total balance outstanding, conformed by the principal, interests and any other conceept owed by the debtor. |
Home Mortgage % | ||||||||||||
Capital | ||||||||||||
On | On Non- | |||||||||||
Guaranteed | Guaranteed | |||||||||||
Portion | Portion | Interest/Other | ||||||||||
A – Normal Risk | 1 | 1 | 1 | |||||||||
B – Aceptable Risk | 3.2 | 100 | 100 | |||||||||
C – Appreciable Risk | 10 | 100 | 100 | |||||||||
D – Significant Risk | 20 | 100 | 100 | |||||||||
E – Risk of Unrecoverability | 30 | 100 | 100 |
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Time elapsed from default date to security non-execution | ||||
% Cover of security | Appropriate mortgage security/escrow | Non-mortgage security | ||
70 | 0 - 18 months | 0 -12 months | ||
50 | 18- 24 months | 12 -24 months | ||
30 | 24 - 30 months | — | ||
15 | 30 - 36 months | — | ||
— | More than 36 months | More than 24 months |
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• | In the case of mortgage collateral consisting of property to be used for housing purposes, the market value shall be the initial appraisal value of the collateral duly adjusted according to the housing price index published by the National Planning Department. The value shall be updated on at least a quarterly basis, based on the aforementioned index. |
• | In the case of mortgage collateral consisting of property different than housing, the market value shall be the appraisal value of the property given over in guarantee when the loan was issued or the new appraisal value as subsequently calculated on a periodic basis. |
Year Ended December 31, | ||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | ||||||||||||||||
(Ps million) | ||||||||||||||||||||
Balance at beginning of period | Ps | 332,324 | Ps | 387,263 | Ps | 434,378 | Ps | 705,882 | Ps | 834,183 | ||||||||||
Balance at beginning of period (Factoring Bancolombia) | — | — | — | 5,625 | — | |||||||||||||||
Balance at beginning of period (Conavi, Corfinsura and subsidiaries) | — | — | 236,013 | — | — | |||||||||||||||
Balance at beginning of period (Sufinanciamiento) | 11,854 | — | — | — | — | |||||||||||||||
Balance at beginning of period (Banagrícola’s subsidiaries) (4) | — | — | — | — | 147,357 | |||||||||||||||
Allowance for financial leasing reclassification (3) | — | 7,002 | — | — | — | |||||||||||||||
Provisions for loan losses(1) | 286,170 | 186,480 | 374,744 | 568,679 | 1,203,543 | |||||||||||||||
Charge-offs | (112,393 | ) | (55,032 | ) | (115,455 | ) | (136,789 | ) | (186,273 | ) | ||||||||||
Effect of difference in exchange rate | (284 | ) | (12,751 | ) | (3,955 | ) | (1,210 | ) | (25,441 | ) | ||||||||||
Reclassification-Securitization | — | — | (11,947 | ) | — | — | ||||||||||||||
Reversals of provisions | (130,408 | ) | (78,584 | ) | (207,896 | ) | (308,004 | ) | (516,218 | ) | ||||||||||
Balance at end of year (2) | Ps | 387,263 | Ps | 434,378 | Ps | 705,882 | Ps | 834,183 | Ps | 1,457,151 | ||||||||||
(1) | The provision for past due accrued interest receivable, which is not included in this item, amounted to Ps 5,316 million, Ps 4,483 million, Ps 12,379 million, Ps 14,825 million and Ps 35,543 million for the years ended December 31,2003, 2004, 2005,2006 and 2007, respectively. | |
(2) | The allowance past due accrued interest receivable, which is not included in this item, amounted to Ps 5,170 million, Ps 4,603 million, Ps 8,655 million, Ps 11,644 million and Ps 33,303 million for the years ended December 31,2003, 2004, 2005,2006 and 2007, respectively. | |
(3) | Includes allowance for financial leases, according to regulations issued by the Superintendency of Banking (now Superintendency of Finance) and effective as of January 1, 2004. | |
(4) | Includes allowance for loan losses of Banco Agrícola, Banco Agrícola (Panamá), Arrendadora Financiera, Credibac, Aseguradora Suiza Salvadoreña and Asesuisa Vida. |
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As of December 31, | ||||||||||||||||||||
2003 | 2004(1) | 2005 | 2006 | 2007 | ||||||||||||||||
(Ps million) | ||||||||||||||||||||
Commercial loans | Ps | 276,285 | Ps | 271,296 | Ps | 387,473 | Ps | 356,272 | Ps | 791,957 | ||||||||||
Consumer loans | 27,429 | 49,350 | 88,052 | 152,842 | 340,247 | |||||||||||||||
Small business loans | 2,082 | 4,271 | 4,679 | 6,365 | 9,050 | |||||||||||||||
Financial leases | — | 6,529 | 16,342 | 49,463 | 133,837 | |||||||||||||||
Mortgage | 440 | 37 | 22,747 | 23,948 | 53,973 | |||||||||||||||
General | 81,027 | 102,895 | 186,589 | 245,293 | 128,087 | |||||||||||||||
Total allowance for loan losses | Ps | 387,263 | Ps | 434,378 | Ps | 705,882 | Ps | 834,183 | Ps | 1,457,151 | ||||||||||
(1) | Includes financial leases, according to regulations issued by the Superintendency of Finance and effective as January 1, 2004. |
As of December 31, | ||||||||||||||||||||||||||||||||||||||||
2003 | % | 2004 | % | 2005 | % | 2006 | % | 2007 | % | |||||||||||||||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||||||||||||||
Trade financing | Ps | 217 | 0.1 | % | Ps | 3,496 | 0.8 | % | Ps | 23,598 | 3.3 | % | Ps | 17,154 | 2.1 | % | Ps | 26,339 | 1.8 | % | ||||||||||||||||||||
Loans funded by domestic development banks | 57,745 | 14.9 | 10,057 | 2.3 | 20,886 | 3.0 | 7,057 | 0.8 | 28,044 | 1.9 | ||||||||||||||||||||||||||||||
Working capital loans | 202,403 | 52.3 | 243,862 | 56.2 | 315,725 | 44.7 | 261,589 | 31.4 | 455,171 | 31.2 | ||||||||||||||||||||||||||||||
Credit cards | 34 | 0.0 | 971 | 0.2 | 1,435 | 0.2 | 2,324 | 0.3 | 1,273 | 0.1 | ||||||||||||||||||||||||||||||
Overdrafts | 370 | 0.1 | 919 | 0.2 | 1,781 | 0.3 | 3,617 | 0.4 | 2,706 | 0.2 | ||||||||||||||||||||||||||||||
Total corporate | 260,769 | 67.4 | 259,305 | 59.7 | 363,425 | 51.5 | 291,741 | 35.0 | 513,533 | 35.2 | ||||||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||||||||||
Credit cards | 6,452 | 1.7 | 11,965 | 2.8 | 21,815 | 3.1 | 36,062 | 4.3 | 134,781 | 9.2 | ||||||||||||||||||||||||||||||
Personal loans | 15,687 | 4.1 | 27,718 | 6.4 | 45,955 | 6.5 | 92,625 | 11.1 | 166,685 | 11.4 | ||||||||||||||||||||||||||||||
Vehicle loans | 8,550 | 2.2 | 6,121 | 1.4 | 13,837 | 2.0 | 30,698 | 3.7 | 69,080 | 4.7 | ||||||||||||||||||||||||||||||
Overdrafts | 1,908 | 0.5 | 2,791 | 0.6 | 4,186 | 0.6 | 4,274 | 0.5 | 17,076 | 1.2 | ||||||||||||||||||||||||||||||
Loans funded by domestic development banks | 642 | 0.2 | 1,770 | 0.4 | 3,970 | 0.6 | 5,817 | 0.7 | 30,172 | 2.1 | ||||||||||||||||||||||||||||||
Trade financing | 119 | 0.0 | 59 | 0.0 | 430 | 0.1 | 1,254 | 0.2 | 5,212 | 0.4 | ||||||||||||||||||||||||||||||
Working capital loans | 11,669 | 2.9 | 15,188 | 3.6 | 26,586 | 3.8 | 53,008 | 6.4 | 204,714 | 14.0 | ||||||||||||||||||||||||||||||
Total retail | 45,027 | 11.6 | 65,612 | 15.2 | 116,779 | 16.7 | 223,738 | 26.9 | 627,720 | 43.1 | ||||||||||||||||||||||||||||||
Financial leases(1) | — | 0.0 | 6,529 | 1.4 | 16,342 | 2.3 | 49,463 | 5.9 | 133,838 | 9.2 | ||||||||||||||||||||||||||||||
Mortgage | 440 | 0.1 | 37 | 0.0 | 22,747 | 3.2 | 23,948 | 2.9 | 53,973 | 3.7 | ||||||||||||||||||||||||||||||
General | 81,027 | 20.9 | 102,895 | 23.7 | 186,589 | 26.3 | 245,293 | 29.3 | 128,087 | 8.8 | ||||||||||||||||||||||||||||||
Total allowance for loan losses | Ps | 387,263 | 100.0 | % | Ps | 434,378 | 100.0 | % | Ps | 705,882 | 100.0 | % | Ps | 834,183 | 100.0 | % | Ps | 1,457,151 | 100.0 | % | ||||||||||||||||||||
(1) | The allowance for financial leases is included in the allowance for loans since 2004. |
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• | Probability of Default: probability of non-payment or expected delay in payment rate within a period of 12 months; | ||
• | Estimate or quantification of the expected loss that may be incurred by the entity, should default occur. For this estimate, it is important, among other things, to calculate the rate of recovery of the active value (in the event that the loan would become unrecoverable) and the existence and suitability of the collateral that supports the loans. |
�� | ||||
Where: | ||||
PD= | Probability of default | |||
EA D= | Exposure at the time of default | |||
LGD= | Loss given default |
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Year ended December 31, | ||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | ||||||||||||||||
(Ps million) | ||||||||||||||||||||
Trade financing | Ps | 546 | Ps | 100 | Ps | 630 | Ps | 5,507 | Ps | 151 | ||||||||||
Loans funded by domestic development banks | 1,760 | 2,832 | 4,573 | — | 1,320 | |||||||||||||||
Working capital loans | 72,298 | 15,350 | 18,190 | 49,474 | 47,310 | |||||||||||||||
Credit cards | 10,035 | 9,015 | 14,960 | 10,067 | 33,256 | |||||||||||||||
Personal loans | 19,475 | 20,251 | 37,775 | 46,095 | 86,086 | |||||||||||||||
Vehicle loans | 1,419 | 1,981 | 2,508 | 6,483 | 10,190 | |||||||||||||||
Overdrafts | 6,394 | 3,981 | 3,808 | 4,544 | 4,140 | |||||||||||||||
Mortgage & other | 466 | 385 | 31,742 | 12,795 | 1,791 | |||||||||||||||
Financial leases(1) | — | 1,137 | 1,269 | 1,824 | 2,029 | |||||||||||||||
Total charge-offs | Ps | 112,393 | Ps | 55,032 | Ps | 115,455 | Ps | 136,789 | Ps | 186,273 | ||||||||||
(1) | It includes financial leases according to regulations issued by the Superintendency of Finance and effective as of January 1, 2004. |
Year ended December 31, | ||||||||||||||||||||
2003 | 2004 | 2006 | 2006 | 2007 | ||||||||||||||||
Ratio of charge-offs to average outstanding loans | 1.61 | % | 0.62 | % | 0.66 | % | 0.63 | % | 0.60 | % |
• | Provision of 100% of all amounts past due (capital, interest and other items). | ||
• | One hundred eighty (180) days past due for consumer and small business loans. | ||
• | Three hundred sixty (360) days past due for commercial loans. | ||
• | One thousand six hundred twenty (1620) days past due for mortgage loans. |
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2005 | 2006 | 2007 | ||||||||||
( thousand of U.S. dollars) | ||||||||||||
Mexico | US$ | 69,907 | US$ | 79,312 | US$ | 91,546 | ||||||
Brazil | 156,084 | 79,736 | 73,943 | |||||||||
United States | 3,279 | 166,380 | 192,221 | |||||||||
Chile | — | 85,281 | 57,234 | |||||||||
British Virgin Island | 26,469 | 25,596 | 59,488 | |||||||||
Bolivia | 1,000 | — | — | |||||||||
Peru | 150 | 7,125 | 12,211 | |||||||||
Ecuador | 3,611 | 6,633 | 16,430 | |||||||||
Panama | 4,457 | 9,144 | 94,375 | |||||||||
El Salvador | — | 9,300 | 2,926,703 | |||||||||
Cayman Islands | 5,740 | 1,690 | — | |||||||||
Costa Rica | 6,949 | 7,255 | 64,180 | |||||||||
Guatemala | 3,000 | 3,533 | 289,917 | |||||||||
Venezuela | 2,000 | 2,000 | 6,002 | |||||||||
Germany | 15,643 | — | 4,558 | |||||||||
Guyana | 5,000 | 4,000 | 3,000 | |||||||||
Honduras | 2,626 | 4,313 | 38,430 | |||||||||
United Kingdom | 5,870 | 23,209 | 3,122 | |||||||||
Spain | — | 17,345 | 1,038 | |||||||||
Switzerland | — | 40,330 | 15,462 | |||||||||
Netherlands | — | 20,180 | — | |||||||||
Uruguay | — | — | 100 | |||||||||
Canada | — | — | 1,019 | |||||||||
Austria | — | — | 1,034 | |||||||||
Finland | — | — | 1,003 | |||||||||
Ireland | — | — | 3,438 | |||||||||
Sweden | — | — | 4,859 | |||||||||
Italy | — | — | 3,049 | |||||||||
Haiti | — | — | 2 | |||||||||
Norway | — | — | 1 | |||||||||
Nicaragua | — | — | 28,957 | |||||||||
Total Cross-Border Outstanding Loans and Investments | US$ | 311,785 | US$ | 592,362 | US$ | 3,993,322 | ||||||
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As of December 31, | ||||||||||||
2005 | 2006 | 2007 | ||||||||||
(Ps million) | ||||||||||||
Non-interest bearing deposits: | ||||||||||||
Checking accounts | Ps | 3,171,182 | Ps | 4,121,506 | Ps | 5,300,864 | ||||||
Other deposits | 359,097 | 459,143 | 503,860 | |||||||||
Total | 3,530,279 | 4,580,649 | 5,804,724 | |||||||||
Interest bearing deposits: | ||||||||||||
Checking accounts | 1,068,409 | 1,244,348 | 1,567,411 | |||||||||
Time deposits | 6,259,800 | 7,377,586 | 14,304,727 | |||||||||
Savings deposits | 7,526,494 | 10,013,884 | 12,697,288 | |||||||||
Total | 14,854,703 | 18,635,818 | 28,569,426 | |||||||||
Total deposits | Ps | 18,384,982 | Ps | 23,216,467 | Ps | 34,374,150 | ||||||
At December 31, 2007 | ||||||||||||
Pesos | U.S. dollars | Total | ||||||||||
(Ps million) | ||||||||||||
Time deposits higher than US$100,000(1) | ||||||||||||
Up to 3 months | 2,684,853 | 2,527,861 | 5,212,714 | |||||||||
From 3 to 6 months | 1,403,562 | 808,854 | 2,212,416 | |||||||||
From 6 to 12 months | 516,786 | 640,313 | 1,157,099 | |||||||||
More than 12 months | 1,457,184 | 206,626 | 1,663,810 | |||||||||
Time deposits less than US$100,000(1) | 2,436,669 | 1,622,019 | 4,058,688 | |||||||||
Total | 8,499,054 | 5,805,673 | 14,304,727 | |||||||||
(1) | Equivalent to Ps 201 million at the Representative Market Rate as of December 31, 2007, |
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For the Fiscal Year | ||||||||||||
Ended December 31, | ||||||||||||
2005 | 2006 | 2007 | ||||||||||
(in percentages) | ||||||||||||
Net income as a percentage of: | ||||||||||||
Average total assets | 3.30 | 2.31 | 2.52 | |||||||||
Average shareholders’ equity | 31.49 | 22.10 | 26.13 | |||||||||
Dividends declared per share as a percentage of consolidated net income per share(1) | 39.05 | 51.65 | 39.64 | |||||||||
Average shareholders’ equity as a percentage of average total assets | 10.47 | 10.46 | 9.63 | |||||||||
Return on interest-earning assets(2) | 12.6 | 10.5 | 12.9 |
(1) | Dividends are paid based on unconsolidated earnings. Net income per share is calculated using the average number of common and preference shares outstanding during the year. | |
(2) | Defined as total interest earned divided by average interest-earning assets. |
As of December 31, | |||||||||||||||||||||||||||
2005 | 2006 | 2007 | |||||||||||||||||||||||||
Amount | Rate(1) | Amount | Rate(1) | Amount | Rate(1) | ||||||||||||||||||||||
(Ps million, except percentages) | |||||||||||||||||||||||||||
End of period | Ps | 1,705,468 | 3.02 | % | Ps | 1,066,845 | 9.35 | % | Ps | 1,506,611 | 7.74 | %(5) | |||||||||||||||
Weighted average during period | 1,349,987 | 4.05 | % | 1,574,870 | 6.02 | % | 1,748,523 | 6.70 | % | ||||||||||||||||||
Maximum amount of borrowing at any month-end | 1,975,415 | (2) | 2,111,978 | (3) | 2,291,460 | (4) | |||||||||||||||||||||
Interest paid during the year | 54,630 | 94,872 | 116,615 |
(1) | At the end of the year, the Bank typically increases its U.S. dollar-denominated interbank borrowings, which represent the great majority of interbank borrowings and which have lower interest rates. | |
(2) | November | |
(3) | February | |
(4) | April | |
(5) | Corresponds to the ratio between interest paid by foreign interbank borrowings and capital at the end of the year 2007. |
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• | the partial adjustment of Banagrícola’s allowances to Colombia’s regulatory framework, causing additional non-recurrent provisions. | ||
• | the application of a new methodology when calculating provisions for commercial loans based on a reference model developed by the Superintendency of Finance. | ||
• | changes to the applicable allowance percentage formula for consumer loans, which increased these percentages for the loans classified as “A” and “B”. |
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Year ended December 31, | ||||||||||||
2005 | 2006 | 2007 | ||||||||||
(Ps million) | ||||||||||||
Operating expenses: | ||||||||||||
Salaries and employee benefits | Ps | 615,121 | Ps | 690,117 | Ps | 835,150 | ||||||
Bonus plan payments | 26,826 | 35,771 | 84,226 | |||||||||
Compensation | 8,030 | 6,375 | 23,463 | |||||||||
Administrative and other expenses | 793,179 | 882,182 | 1,071,139 | |||||||||
Deposit security, net | 55,050 | 67,813 | 49,113 | |||||||||
Donation expenses | 615 | 22,596 | 15,375 | |||||||||
Depreciation | 87,633 | 104,553 | 122,835 | |||||||||
Merger expenses | 45,703 | 35,779 | — | |||||||||
Goodwill amortization | 22,648 | 25,814 | 70,411 | |||||||||
Total operating expenses | Ps | 1,654,805 | Ps | 1,871,000 | Ps | 2,271,712 | ||||||
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Year ended December 31, | ||||||||||||
2005 | 2006 | 2007 | ||||||||||
(Ps million) | ||||||||||||
Non-operating income (expenses), net: | ||||||||||||
Other income(1) | Ps | 109,770 | Ps | 194,589 | Ps | 126,796 | ||||||
Minority interest | (6,496 | ) | (6,352 | ) | (13,246 | ) | ||||||
Other expenses(2) | (105,120 | ) | (149,243 | ) | (81,549 | ) | ||||||
Total non-operating income (expenses), net | Ps | (1,846 | ) | Ps | 38,994 | Ps | 32,001 | |||||
(1) | For 2007, includes gains on sale of foreclosed assets, property, plant and equipment and other assets, securitization residual benefit, insurance contracts salel and rent. For 2006, includes recovery of deferred tax liability of Ps 98,788 million recorded in 2005 by the Bank. | |
(2) | Other expenses include operational losses and losses from the sale of foreclosed assets, property, plant and equipment and payments for fines, sanctions, lawsuits and indemnities. |
Income statement structure | 2005 | 2006 | 2007 | |||||||||
Net interest income over operating income (excluding net provisions) | 68.1 | % | 60.8 | % | 65.5 | % | ||||||
Fees and income from services net over operating income (excluding net provisions) | 25.5 | % | 29.9 | % | 27.3 | % | ||||||
Other operating income over operating income (excluding net provisions) | 6.4 | % | 9.3 | % | 7.2 | % | ||||||
Provision over operating income (excluding net provisions) | 4.4 | % | 5.2 | % | 13.9 | % | ||||||
Operating expenses over operating income (excluding net provisions) | 54.9 | % | 64.4 | % | 53.0 | % | ||||||
Net operating income over operating income (excluding net provisions) | 40.7 | % | 30.5 | % | 33.1 | % | ||||||
Income tax expense over income before income taxes | 22.7 | % | 18.9 | % | 25.0 | % | ||||||
Interest on loan and leasing over total interest income | 73.2 | % | 89.5 | % | 88.9 | % | ||||||
Interest on Investment Securities over total interest income | 25.8 | % | 9.1 | % | 8.7 | % | ||||||
Interest on overnight funds over total interest income | 1.1 | % | 1.5 | % | 2.4 | % |
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Favorable factors for the Colombian economy | Unfavorable factors for the Colombian economy | |
— mid-term | — mid-term | |
• Benefits derived from monetary policies aimed at achieving sustainable growth | • General uncertainty with regard to exchange rate • Inflationary pressures due to rising food prices and accelerated growth of the domestic demand • Political uncertainty regarding future ties with Venezuela and Ecuador could impact trade and economic relations with neighboring countries • Decrease in proven oil reserves • Difficulties in approving the free trade agreement with the U.S. • An economic recession in the US with a greater financial meltdown over global capital markets • Possible escalation in activities of guerilla and drug cartels, that could result in an increase of violence • High private financial needs coupled with local monetary restrictive policy and external adverse financial conditions could increase vulnerabilities in the economy and the pace of private investment. | |
• Increased capital flows through foreign direct investment and less from short term external debt | ||
• Sustained high levels of business and consumer confidence in the economy • Improved political scenario as well as higher social indicators | ||
• Better trade terms and greater weight of the balance of trade as percentage of GDP • Higher income levels in Andean and South American countries that favor the increase exports • Moderate positive prospects for growth in financial services as a percentage of GDP • Improvements in the Colombian government balance sheet continue as income from tax collection rises | ||
• New successes in the Colombian government domestic security policies increasing security and business environment |
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• | The Bank issued subordinated notes. The Bank offered US$ 400 million in aggregate principal amount of dollar denominated subordinated notes due 2017. The notes have a coupon of 6.875%, payable semi-annually on May 25 and November 25 of each year, beginning on November 25, 2007. | ||
• | The Bank also issued ordinary notes. The Bank issued an aggregate principal amount of Ps 400 billion ordinary notes in a public offering in Colombia. This issuance was the first of several successive issuances of global ordinary notes which will be limited to a total aggregate principal amount of Ps 1.5 trillion. | ||
• | The Bank issued a total of 59,999,998 preferred shares, sold for an aggregate amount of approximately Ps 927,612 million (US$ 480 million). |
2005 | 2006 | 2007 | ||||||||||
Checking deposits | 16.7 | % | 18.4 | % | 15.6 | % | ||||||
Time deposits | 24.7 | % | 25.3 | % | 32.5 | % | ||||||
Saving deposits | 29.7 | % | 34.4 | % | 28.7 | % |
Ps million | 2005 | 2006 | 2007 | |||||||||
Operating Activities | Ps | (7,314,498 | ) | Ps | (5,757,800 | ) | Ps | (12,149,575 | ) | |||
Investing activities | (3,143,420 | ) | 2,651,998 | (191,828 | ) | |||||||
Net cash provided by financing activities | 10,938,580 | 3,382,146 | 15,563,424 |
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As of December 31, | ||||||||||||||||||||||||
% of total | % of total | % of total | ||||||||||||||||||||||
2005 | funding | 2006 | funding | 2007 | funding | |||||||||||||||||||
(Ps million, except percentages) | ||||||||||||||||||||||||
Checking deposits | ||||||||||||||||||||||||
Peso-denominated | Ps | 3,449,321 | 13.6 | % | Ps | 4,473,717 | 15.3 | % | Ps | 5,143,200 | 11.7 | % | ||||||||||||
Dollar-denominated | 790,270 | 3.1 | % | 892,137 | 3.1 | % | 1,725,075 | 3.9 | % | |||||||||||||||
Total | 4,239,591 | 16.7 | % | 5,365,854 | 18.4 | % | 6,868,275 | 15.6 | % | |||||||||||||||
Time deposits | ||||||||||||||||||||||||
Peso-denominated | 4,633,373 | 18.3 | % | 5,513,961 | 18.9 | % | 8,499,055 | 19.3 | % | |||||||||||||||
Dollar-denominated | 1,626,427 | 6.4 | % | 1,863,625 | 6.4 | % | 5,805,672 | 13.2 | % | |||||||||||||||
Total | 6,259,800 | 24.7 | % | 7,377,586 | 25.3 | % | 14,304,727 | 32.5 | % | |||||||||||||||
Savings deposits | ||||||||||||||||||||||||
Peso-denominated | 7,396,501 | 29.2 | % | 9,863,370 | 33.9 | % | 10,652,306 | 24.1 | % | |||||||||||||||
Dollar-denominated | 129,993 | 0.5 | % | 150,514 | 0.5 | % | 2,044,982 | 4.6 | % | |||||||||||||||
Total | 7,526,494 | 29.7 | % | 10,013,884 | 34.4 | % | 12,697,288 | 28.7 | % | |||||||||||||||
Other deposits | ||||||||||||||||||||||||
Peso-denominated | 266,942 | 1.0 | % | 369,567 | 1.3 | % | 360,950 | 0.8 | % | |||||||||||||||
Dollar-denominated | 92,155 | 0.4 | % | 89,576 | 0.3 | % | 142,910 | 0.3 | % | |||||||||||||||
Total | 359,097 | 1.4 | % | 459,143 | 1.6 | % | 503,860 | 1.1 | % | |||||||||||||||
Interbank Borrowings | ||||||||||||||||||||||||
Peso-denominated | — | 0.0 | % | — | 0.0 | % | — | 0.0 | % | |||||||||||||||
Dollar-denominated | 1,705,468 | 6.8 | % | 1,066,845 | 3.7 | % | 1,506,611 | 3.4 | % | |||||||||||||||
Total | 1,705,468 | 6.8 | % | 1,066,845 | 3.7 | % | 1,506,611 | 3.4 | % | |||||||||||||||
Repurchase agreement and interbank funds(1) | ||||||||||||||||||||||||
Peso-denominated | 915,378 | 3.6 | % | 716,940 | 2.5 | % | 1,199,021 | 2.7 | % | |||||||||||||||
Dollar-denominated | 414,535 | 1.6 | % | 290,105 | 1.0 | % | 806,469 | 1.8 | % | |||||||||||||||
Total | 1,329,913 | 5.2 | % | 1,007,045 | 3.5 | % | 2,005,490 | 4.5 | % | |||||||||||||||
Borrowings from development and other domestic banks(1) | ||||||||||||||||||||||||
Peso-denominated | 2,015,968 | 8.0 | % | 2,446,597 | 8.4 | % | 2,780,971 | 6.3 | % | |||||||||||||||
Dollar-denominated | 206,115 | 0.8 | % | 2,984 | 0.0 | % | 563,664 | 1.3 | % | |||||||||||||||
Total | 2,222,083 | 8.8 | % | 2,449,581 | 8.4 | % | 3,344,635 | 7.6 | % | |||||||||||||||
Bank acceptances outstanding | ||||||||||||||||||||||||
Peso-denominated | 14,996 | 0.0 | % | 2,419 | 0.0 | % | 12,957 | 0.0 | % | |||||||||||||||
Dollar-denominated | 48,130 | 0.2 | % | 61,611 | 0.2 | % | 42,251 | 0.1 | % | |||||||||||||||
Total | 63,126 | 0.2 | % | 64,030 | 0.2 | % | 55,208 | 0.1 | % | |||||||||||||||
Long term debt | ||||||||||||||||||||||||
Peso-denominated | 1,648,312 | 6.5 | % | 1,302,702 | 4.5 | % | 1,425,109 | 3.2 | % | |||||||||||||||
Dollar-denominated | — | 0.0 | % | — | 0.0 | % | 1,425,621 | 3.2 | % | |||||||||||||||
Total | 1,648,312 | 6.5 | % | 1,302,702 | 4.5 | % | 2,850,730 | 6.4 | % | |||||||||||||||
Total funding | ||||||||||||||||||||||||
Peso-denominated | 20,340,791 | 80.2 | % | 24,689,273 | 84.8 | % | 30,073,569 | 68.1 | % | |||||||||||||||
Dollar-denominated | 5,013,093 | 19.8 | % | 4,417,397 | 15.2 | % | 14,063,255 | 31.9 | % | |||||||||||||||
Total | Ps | 25,353,884 | 100.0 | % | Ps | 29,106,670 | 100.0 | % | Ps | 44,136,824 | 100.0 | % | ||||||||||||
(1) | Includes borrowings from commercial banks and other non-financial entities. |
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• | to hedge its foreign exchange position (cash and investment portfolio) against foreign exchange rate volatility; and | ||
• | as a speculative position through which, by selling and buying forward agreements, the Bank takes advantage of market opportunities. |
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Expire within one year | Expire after one year | Total amount outstanding | ||||||||||||||||||||||
2006 | 2007 | 2006 | 2007 | 2006 | 2007 | |||||||||||||||||||
Financial standby letters of credit | Ps | 702,834 | Ps | 1,007,038 | Ps | 350,767 | Ps | 347,883 | Ps | 1,053,601 | Ps | 1,354,921 | ||||||||||||
Bank guarantees | 550,137 | 992,467 | 229,628 | 265,981 | 779,765 | 1,258,448 | ||||||||||||||||||
Total | Ps | 1,252,971 | Ps | 1,999,505 | Ps | 580,395 | Ps | 613,864 | Ps | 1,833,366 | Ps | 2,613,369 | ||||||||||||
Less than | 1-3 | 3-5 | After | |||||||||||||||||
Contractual Obligations | Total | 1 year | years | years | 5 years | |||||||||||||||
(Ps millions) | ||||||||||||||||||||
Long-term debt obligations | Ps | 2,866,463 | Ps | 464,368 | Ps | 1,017,576 | Ps | 374,922 | Ps | 1,009,597 | ||||||||||
Time deposits | 14,489,572 | 12,723,291 | 1,040,811 | 417,445 | 308,025 | |||||||||||||||
Commitments to originate loans | 1,467,745 | 1,467,745 | — | — | — | |||||||||||||||
Commitments of repurchase of investments | 1,111,450 | 1,111,450 | — | — | — | |||||||||||||||
Employee benefit plans | 110,669 | 12,821 | 27,351 | 29,799 | 40,698 | |||||||||||||||
Total | Ps | 20,045,899 | Ps | 15,779,675 | Ps | 2,085,738 | Ps | 822,166 | Ps | 1,358,320 | ||||||||||
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• | The ownership interests in subsidiaries held by parties other than the parent be clearly identified, labeled, and presented in the consolidated statement of financial position within equity, but separate from the parent’s equity. | ||
• | The amount of consolidated net income attributable to the parent and to the non-controlling interest be clearly identified and presented on the face of the consolidated statement of income. A non-controlling interest, sometimes called a minority interest, is the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent. |
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• | Changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary be accounted for consistently. A parent’s ownership interest in a subsidiary changes if the parent purchases additional ownership interests in its subsidiary or if the parent sells some of its ownership interests in its subsidiary. It also changes if the subsidiary reacquires some of its ownership interests or the subsidiary issues additional ownership interests. All of those transactions are economically similar, and this Statement requires that they be accounted for similarly, as equity transactions. | ||
• | When a subsidiary is deconsolidated, any retained non-controlling equity investment in the former subsidiary be initially measured at fair value. The gain or loss on the deconsolidation of the subsidiary is measured using the fair value of any non-controlling equity investment rather than the carrying amount of that retained investment. | ||
• | Entities provide sufficient disclosures that clearly identify and distinguish between the interests of the parent and the interests of the non-controlling owners. |
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First Elected | Term | |||||||
Name | to the Board | Expires | ||||||
David Bojanini García | 2006 | 2009 | ||||||
José Alberto Vélez Cadavid | 1996 | 2009 | ||||||
Carlos Enrique Piedrahita Arocha | 1994 | (1) | 2009 | |||||
Gonzalo Alberto Pérez Rojas | 2004 | (2) | 2009 | |||||
Ricardo Sierra Moreno | 1996 | (3) | 2009 | |||||
Juan Camilo Restrepo Salazar | 2006 | 2009 | ||||||
Alejandro Gaviria Uribe | 2005 | 2009 | ||||||
Francisco Moncaleano Botero | 2006 | 2009 | ||||||
Carlos Raúl Yepes Jiménez | 2006 | 2009 |
(1) | Carlos Enrique Piedrahita Arocha had previously served as BC’s Director during the period 1990-1993. | |
(2) | Gonzalo Alberto Pérez Rojas had previously served as BC’s Director during the period 1990-1994. | |
(3) | Ricardo Sierra Moreno had previously served as BC’s Director during the period 1982-1988. |
Name | Period Served | |||
President | ||||
Jorge Londoño Saldarriaga | Since 1996 | |||
Vice Presidents | ||||
Sergio Restrepo Isaza | Since 2005 | |||
Federico Ochoa Barrera | Since 1984 | |||
Jaime Alberto Velásquez Botero | Since 1997 | |||
Juan Carlos Mora Uribe | Since 2005 | |||
Margarita María Mesa Mesa | Since 2005 | |||
Santiago Pérez Moreno | Since 1989 | |||
Gonzalo Toro Bridge | Since 1998 | |||
Luis Fernando Muñoz Serna | Since 2005 | |||
Olga Botero Peláez | Since 2007 | |||
Luis Arturo Penagos Londoño | Since 2006 | |||
Augusto Restrepo Gómez | Since 2007 | |||
Luis Fernando Montoya Cusso | Since 1998 | |||
Jairo Burgos de la Espriella | Since 1998 | |||
Carlos Alberto Rodríguez López | Since 2008 |
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Total number of employees employed | Number of employees employed | |||||||
by BC and its consolidated | by Bancolombia S.A. and | |||||||
As of December 31 | Subsidiaries | Bancolombia Miami Agency | ||||||
2005 | 14,562 | 11,571 | ||||||
2006 | 16,222 | 12,520 | ||||||
2007 | 24,836 | 12,906 | ||||||
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% | % | |||||||||||||||||||
Ownership | Ownership | % | ||||||||||||||||||
of | of | Ownership | ||||||||||||||||||
Common | Preferred | of Total | ||||||||||||||||||
Name | Common Shares | Preferred Shares | Shares(1) | Shares(1) | Shares(1) | |||||||||||||||
Suramericana de Inversiones and Subsidiaries(2) | 231,752,366 | 0 | 45.5 | % | 0.0 | % | 29.4 | % | ||||||||||||
Inversiones Argos S.A.(3) | 72,386,256 | 0 | 14.2 | % | 0.0 | % | 9.2 | % | ||||||||||||
ADR Program | — | 225,334,384 | 0 | % | 81.0 | % | 28.6 | % | ||||||||||||
Fondo de Pensiones Obligatorias Protección S.A. | 7,617,875 | 23,464,775 | 1.5 | % | 8.4 | % | 3.9 | % | ||||||||||||
(1) | Common shares have one vote per share; preferred shares have limited voting rights under certain circumstances specified in the by-laws of BC filed as Exhibit 1 to this Annual Report. | |
(2) | Represents ownership of Suramericana de Inversiones S.A. directly and through its subsidiaries Portafolio de Inversiones Suramericana S.A., Fideicomiso Citirust-Suramericana-IFC, Sociedad Inversionista Anónima S.A.,Compañía Suramericana de Construcciones S.A., Cia.Suramericana de Seguros S.A., Cía. Suramericana de Seguros de Vida S.A, Inversiones GVCS S.A., SIA Inversiones S.A. and Suramericana Administradora de Riesgos Profesionales y Seguros SURATEP. | |
(3) | Represents ownership of Inversiones Argos S.A. directly and through subsidiary Cementos Argos S.A. |
Common Shares | Preferred Shares | Total | ||||||||||
Number of shares outstanding as of July 29, 2005 | 398,259,608 | 178,435,787 | 576,695,395 | |||||||||
Shares issued in exchange for Conavi and Corfinsura shares as of November 1, 2005. | 111,444,976 | 39,686,634 | 151,131,610 | |||||||||
Shares outstanding from November 1, 2005. | 509,704,584 | 218,122,421 | 727,827,005 | |||||||||
Current capital structure as of November 1, 2005 | 70.03 | % | 29.97 | % | 100 | % |
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• | subsidiaries must carry out their activities independently and with administrative autonomy, so that they have enough decision-making capacity in order to carry out the transactions that form part of their business purpose. | ||
• | transactions between the parent company and its subsidiaries must be of a real nature and cannot differ considerably from standard market conditions, nor be in detriment to the Colombian Government, shareholders or third parties. | ||
• | subsidiaries may not acquire any shares issued by their parent company or its subsidiaries. | ||
• | subsidiaries dedicated to providing financial services may not acquire or negotiate securities issued, endorsed, guaranteed or accepted, or belonging to an issuance that is administered by the parent company or its subsidiaries, except for the transactions undertaken by broker dealers in the ordinary course of business. | ||
• | subsidiaries dedicated to providing financial services may not sell assets to the Bank, nor may the latter purchase these from the subsidiary, unless in the context of the liquidation of the subsidiary. | ||
• | parent companies may not carry out active credit operations with a subsidiary dedicated to providing financial services. | ||
• | parent companies may not grant over-drafts to a subsidiary for an amount exceeding the deposits in its checking account, except when the surplus corresponds to the value of checks that have been deposited but have not been effectively cleared for subsequent payment, the value of which shall be covered on the business day following the date on which the overdraft is issued. | ||
• | no transaction may be carried out between parent companies and their subsidiaries that implies conflicts of interest as determined by the Superintendency of Finance. |
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2007 | ||||||||
Enterprises that directly or indirectly | ||||||||
through one or more intermediaries, | ||||||||
control or are controlled by, or are | ||||||||
under common control with, the | ||||||||
company and associates | Key management personnel | |||||||
(Ps million) | ||||||||
Balance Sheet | ||||||||
Investment securities | 75,546 | — | ||||||
Loans | 80,621 | 40,393 | ||||||
Customers’ acceptances and derivatives | 26,028 | — | ||||||
Accounts receivable | 11,697 | 488 | ||||||
Total | Ps | 193,892 | Ps | 40,881 | ||||
Deposits | 665,011 | 2,164 | ||||||
Bonds | 77,567 | — | ||||||
Total | Ps | 742,578 | Ps | 2,164 | ||||
Transactions Income | ||||||||
Dividends received | 3,635 | — | ||||||
Interest and fees | 287 | 61 | ||||||
Total | Ps | 3,922 | Ps | 61 | ||||
Expenses | ||||||||
Interest | 44,650 | 521 | ||||||
Fees | — | 439 | ||||||
Total | Ps | 44,650 | Ps | 960 | ||||
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• | first, an amount equal to 10% of BC’s net profits to a legal reserve until such reserve is equal to at least 50% of the Bank’s paid-in capital; | ||
• | second, to the payment of the minimum dividend on the preferred shares (for more information, see “Item 10. Additional Information — B. Memorandum and Articles of Association”); and | ||
• | third, as may be determined in the ordinary annual shareholders’ meeting by the vote of the holders of a majority of the shares entitled to vote, upon the recommendation of the board of directors, and may, subject to further reserves required by BC’s by-laws, be distributed as a dividend. |
Cash Dividends | Cash Dividends | |||||||
Dividends declared with respect to netIncome earned in: | per share(1)(2) | per share(1)(3) | ||||||
(Ps) | (U.S. dollars) | |||||||
2003 | 272 | 0.101 | ||||||
2004 | 376 | 0.159 | ||||||
2005 | 508 | 0.222 | ||||||
2006 | 532 | 0.243 | ||||||
2007 | 568 | 0.310 |
(1) | Includes common shares and preferred shares. | |
(2) | Cash dividends for 2003, 2004 2005, and 2006 were paid in quarterly installments and cash dividends for 2007 will be paid in quarterly installments. | |
(3) | Amounts have been translated from pesos at the Representative Market Rate in effect at the end of the month in which the dividends were declared (February or March, as applicable). |
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Colombia Stock Exchange | New York Stock Exchange | |||||||||||||||||||
Ps Per Preferred Share | US$ per ADS | Trading Volume | ||||||||||||||||||
High | Low | High | Low | (Number of ADSs) | ||||||||||||||||
Year Ending | ||||||||||||||||||||
December 31, 2003 | 3,800 | 1,750 | 5.35 | 2.32 | 9,789,400 | |||||||||||||||
December 31, 2004 | 9,030 | 3,839 | 14.12 | 5.30 | 31,487,800 | |||||||||||||||
December 31, 2005 | 17,000 | 7,670 | 29.25 | 12.40 | 81,772,000 | |||||||||||||||
December 31, 2006 | 20,700 | 12,980 | 36.18 | 20.00 | 97,287,628 | |||||||||||||||
December 31, 2007 | 19,360 | 13,200 | 39.00 | 24.00 | 129,408,200 |
Source: | NYSENet (Composite Index) and Colombia Stock Exchange. |
Colombia Stock Exchange | New York Stock Exchange | |||||||||||||||||||||||
Trading | ||||||||||||||||||||||||
Ps Per Preferred | Volume | |||||||||||||||||||||||
Shares | (Number of | US$ per ADS | Trading Volume | |||||||||||||||||||||
High | Low | Shares) | High | Low | (Number of ADSs) | |||||||||||||||||||
(in nominal pesos) | ||||||||||||||||||||||||
2006 | ||||||||||||||||||||||||
First quarter | 19,800 | 15,800 | 20,538,652 | 35.00 | 28.50 | 26,325,100 | ||||||||||||||||||
Second quarter | 20,700 | 12,980 | 18,436,476 | 36.18 | 20.00 | 32,446,100 | ||||||||||||||||||
Third quarter | 17,740 | 14,040 | 7,074,255 | 30.70 | 22.32 | 19,498,600 | ||||||||||||||||||
Fourth quarter | 18,520 | 16,600 | 15,619,867 | 32.25 | 28.24 | 19,017,828 | ||||||||||||||||||
2007 | ||||||||||||||||||||||||
First quarter | 17,800 | 14,680 | 10,694,697 | 32.00 | 24.00 | 17,335,920 | ||||||||||||||||||
Second quarter | 15,584 | 13,320 | 19,721,707 | 35.00 | 26.15 | 33,393,208 | ||||||||||||||||||
Third quarter | 17,940 | 14,980 | 31,476,408 | 37.33 | 28.42 | 48,418,900 | ||||||||||||||||||
Fourth quarter | 19,360 | 16,680 | 23,190,999 | 39.00 | 32.88 | 32,705,772 | ||||||||||||||||||
2008 | ||||||||||||||||||||||||
First quarter | 17,800 | 13,800 | 15,322,243 | 36.15 | 28.30 | 32,658,916 |
Source: | NYSENet (Composite Index) and Colombia Stock Exchange. |
Colombia Stock Exchange | New York Stock Exchange | |||||||||||||||||||
Ps Per Preferred Share | US$ per ADS | Trading Volume | ||||||||||||||||||
High | Low | High | Low | (Number of ADSs) | ||||||||||||||||
Month | ||||||||||||||||||||
December 2007 | 18,920 | 16,680 | 37.25 | 32.88 | 11,362,624 | |||||||||||||||
January 2008 | 17,800 | 13,800 | 35.50 | 28.30 | 11,924,807 | |||||||||||||||
February 2008 | 16,620 | 14,940 | 34.46 | 30.93 | 8,139,730 | |||||||||||||||
March 2008 | 16,600 | 14,760 | 36.15 | 31.70 | 12,594,379 | |||||||||||||||
April 2008 | 17,660 | 16,060 | 39.95 | 35.09 | 9,903,086 | |||||||||||||||
May | 18,960 | 16,000 | 44.00 | 35.40 | 12,137,507 |
Source: NYSENet (Composite Index) and Colombia Stock Exchange. |
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• | to consider the approval of BC’s annual report, including the financial statements for the preceding fiscal year; | ||
• | to review the annual report prepared by the external auditor; | ||
• | to determine the compensation for the members of the board of directors, the external auditor and the client representative (“defensor del cliente”). The client representative acts as spokesman of the clients and users before the Bank, his primary duty is to objectively solve, free of charge and within the terms established by law, the individual complaints submitted by clients. | ||
• | to elect directors, the client representative and the external auditor (each for a two-year term); and | ||
• | to determine the dividend policy and the allocation of profits, if any, of the preceding fiscal year, as well as any retained earnings from previous fiscal years. |
1. | An employee or director of the issuer or any of its parent or subsidiary companies, including all those persons acting in said capacity during the year immediately preceding that in which they were appointed, except in the case of an independent member of the board of directors being re-elected. | ||
2. | Shareholders, who either directly or by virtue of an agreement direct, guide or control the majority of the entity’s voting rights or who determine the majority composition of the administrative, directing or controlling bodies of this same entity. | ||
3. | A partner or employee of any association or firm that provides advisory or consultancy services to the issuer or to companies who belong to the same economic group to which the issuer in question belongs, in the event that income obtained from such services represent for said association or firm twenty per cent (20%) or more of its total operating income. | ||
4. | An employee or director of a foundation, association or institution that receives significant donations from the issuer. The term “significant donations” is quantified as being twenty per cent (20%) or more of the total amount of donations received by the respective institution. | ||
5. | An administrator of any entity on whose board of directors a legal representative of the issuer participates. | ||
6. | Any person who receives from the issuer any kind of remuneration different from fees as a member of the board of directors, of the audit committee or any other committee set up by the board of directors. |
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• | each holder of common shares is entitled at the annual general shareholders’ meeting to nominate for election of one or more directors; | ||
• | each nomination of one or more directors constitutes a group for the purposes of the election; | ||
• | each group of nominees must contain a hierarchy as to the order of preference for nominees in that group to be elected; | ||
• | once all groups have been nominated, holders of common shares may cast one vote for each common share held in favor of a particular group of nominees. Votes may not be cast for particular nominees in a group; they may be cast only for the entire group; | ||
• | the total number of votes casted in the election is divided by the number of directors to be elected. The resulting quotient is the quota of votes necessary to elect particular directors. For each time that the number of votes cast for a group of nominees is divisible by the quota of votes, one nominee from that group is elected, in the order of the hierarchy of that group; and | ||
• | when no group has enough remaining votes to satisfy the quota of votes necessary to elect a director, any remaining board seat or seats are filled by electing the highest remaining nominee from the group with the highest number of remaining votes cast until all available seats have been filled. |
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• | a favorable vote of at least 70% of the common shares represented at a general shareholders’ meeting is required to approve the issuance of stock without granting a preemptive right in respect of that stock in favor of the shareholders; | ||
• | a favorable vote of at least 78% of the holders of common shares present to decide not to distribute as dividend at least 50% of the annual net profits of any given fiscal year as required by Colombian law; | ||
• | a favorable vote of at least 80% of the holders of common shares and 80% of the holders of subscribed preferred shares to approve the payment of a stock dividend; and | ||
• | a favorable vote of at least 70% of the holders of common shares and of subscribed preferred shares to effect a decision to impair the conditions or rights established for such preferred shares, or a decision to convert those preferred shares into common shares. |
• | In the event that changes in the Bank’s by-laws may impair the conditions or rights assigned to such shares and when the conversion of such shares into common shares is to be approved. | ||
• | When voting the anticipated dissolution, merger or transformation of the corporation or change of its corporate purpose. | ||
• | When the preferred dividend has not been fully paid during two consecutive annual terms. In this event, holders of such shares shall retain their voting rights until the corresponding accrued dividends have been fully paid to them. | ||
• | When the general shareholders’ meeting orders the payment of dividends with issued shares of the Bank. | ||
• | If at the end of a fiscal period, the Bank’s profits are not enough to pay the minimum dividend and the Superintendency of Finance, by its own decision or upon petition of holders of at least ten percent (10%) of preferred shares, determines that benefits were concealed or shareholders were misled with regard to benefits received from the Bank by the Bank’s directors or officers decreasing the profits to be distributed, the Superintendency of Finance may resolve that holders of preferred shares should participate with speaking and voting rights at the general shareholders’ meeting, in the terms established by law. | ||
• | When the registration of shares at the Colombian Stock Exchange or at the National Register of Securities and Issuers which is a registry kept by the Superintendency of Finance, is suspended or canceled. In this event, voting rights shall be maintained until the irregularities that resulted in such cancellation or suspension are resolved. |
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• | the date of the meeting; | ||
• | a description of any resolution to be proposed for adoption at the meeting on which the holders of preferred shares are entitled to vote; and | ||
• | instructions for the delivery of proxies. |
• | first, an amount equivalent to 10% of net profits is segregated to build a legal reserve until that reserve is equal to at least 50% of BC’s paid-in capital; | ||
• | second, payment of the minimum dividend on the preferred shares; and | ||
• | third, allocation of the balance of the net profits is determined by the holders of a majority of the common shares entitled to vote on the recommendation of the board of directors and the President and may, subject to further reserves required by the by-laws, be distributed as dividends. |
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• | its term of existence, as stated in the by-laws, expires without being extended by the shareholders prior to its expiration date; | ||
• | losses cause the decrease of its shareholders’ equity below 50% of its outstanding capital stock, unless one or more of the corrective measures described in the Colombian Commerce Code are adopted by the shareholders within six months; | ||
• | by decision at the general shareholders’ meeting. | ||
• | in certain other events expressly provided by law and in the by-laws. |
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• | BC has no liabilities; | ||
• | BC’s creditors consent in writing; or | ||
• | the outstanding capital stock remaining after the reduction represents at least twice the amount of BC’s liabilities. |
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• | a dealer in securities; | ||
• | a trader in securities that elects to use a mark-to-market method of accounting for securities holdings; | ||
• | a tax-exempt organization; | ||
• | a life insurance company; | ||
• | a person liable for alternative minimum tax; | ||
• | a person that actually or constructively owns 10% or more of the Bank’s voting stock; | ||
• | a person that holds preferred shares or ADSs as part of a straddle or a hedging or conversion transaction; or | ||
• | a person whose functional currency is not the U.S. dollar. |
• | a citizen or resident of the United States; | ||
• | a domestic corporation; | ||
• | an estate whose income is subject to United States federal income tax regardless of its source; or | ||
• | a trust if a United States court can exercise primary supervision over the trust’s administration and one or more United States persons are authorized to control all substantial decisions of the trust. |
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• | at least 75% of the Bank’s gross income for the taxable year is passive income; or | ||
• | at least 50% of the value, determined on the basis of a quarterly average, of the Bank’s assets is attributable to assets that produce or are held for the production of passive income. |
• | any gain you realize on the sale or other disposition of your preferred shares or ADSs; and | ||
• | any excess distribution that the Bank makes to you (generally, any distributions to you during a single taxable year that are greater than 125% of the average annual distributions received by you in respect of the preferred shares or ADSs during the three preceding taxable years or, if shorter, your holding period for the preferred shares or ADSs). |
• | the gain or excess distribution will be allocated ratably over your holding period for the preferred shares or ADSs, | ||
• | the amount allocated to the taxable year in which you realized the gain or excess distribution will be taxed as ordinary income; | ||
• | the amount allocated to each prior year, with certain exceptions, will be taxed at the highest tax rate in effect for that year; and | ||
• | the interest charge generally applicable to underpayments of tax will be imposed in respect of the tax attributable to each such year. |
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• | interest rate risks relating to local currency, foreign currency and UVR; | ||
• | currency risk | ||
• | stock price risk; and | ||
• | fund risk. |
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Modified Duraion | Interest rate Fluctuations (basis points) | |||||||||||||||||||||||
Zone | Band | Low | High | Pesos | UVR | USD | ||||||||||||||||||
Zone 1 | 1 | 0 | 0.08 | 221 | 221 | 100 | ||||||||||||||||||
2 | 0.08 | 0.25 | 221 | 221 | 100 | |||||||||||||||||||
3 | 0.25 | 0.5 | 221 | 221 | 100 | |||||||||||||||||||
4 | 0.5 | 1 | 221 | 221 | 100 | |||||||||||||||||||
Zone 2 | 5 | 1 | 1.9 | 206 | 208 | 90 | ||||||||||||||||||
6 | 1.9 | 2.8 | 190 | 195 | 80 | |||||||||||||||||||
7 | 2.8 | 3.6 | 175 | 182 | 75 | |||||||||||||||||||
Zone 3 | 8 | 3.6 | 4.3 | 159 | 168 | 75 | ||||||||||||||||||
9 | 4.3 | 5.7 | 144 | 155 | 70 | |||||||||||||||||||
10 | 5.7 | 7.3 | 128 | 142 | 65 | |||||||||||||||||||
11 | 7.3 | 9.3 | 118 | 142 | 60 | |||||||||||||||||||
12 | 9.3 | 10.6 | 118 | 142 | 60 | |||||||||||||||||||
13 | 10.6 | 12 | 118 | 142 | 60 | |||||||||||||||||||
14 | 12 | 20 | 118 | 142 | 60 | |||||||||||||||||||
15 | 20 | 118 | 142 | 60 |
USD | 4.4 | % | ||
Euro | 6.0 | % | ||
Other currencies | 8.0 | % | ||
Funds | 14.7 | % | ||
Stock Price | 14.7 | % |
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31/12/2006 | 31/12/2007 | |||||||
Interest Rate Risk VaR | 161,786 | 159,444 | ||||||
Currency Risk VaR | 46,491 | 5,689 | ||||||
Equity Risk VaR | 36,700 | 40,910 | ||||||
Fund Risk VaR | 5,607 | 4,768 | ||||||
Total VaR | 250,584 | 210,811 | ||||||
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2006
FAIR VALUE | +50bps | +100bps | ||||||||||
Assets | ||||||||||||
Held To Maturity Securities | 1,076,367 | (19,446 | ) | (38,804 | ) | |||||||
Loans | 26,403,486 | (72,662 | ) | (144,993 | ) | |||||||
Customer’s acceptances | 2,420 | (1 | ) | (2 | ) | |||||||
Total interest rate sensitive assets | 27,482,272 | (92,109 | ) | (183,799 | ) |
FAIR VALUE | +50bps | +100bps | ||||||||||
Liabilities | ||||||||||||
Checking Accounts — Saving Deposits | 15,546,247 | (66,365 | ) | (132,428 | ) | |||||||
Time Deposits | 7,982,229 | (22,286 | ) | (44,470 | ) | |||||||
Bank acceptances outstandings | 2,420 | (1 | ) | (2 | ) | |||||||
Interbank borrowings | 3,532,291 | (3,888 | ) | (7,758 | ) | |||||||
Long term debt | 1,282,222 | (1,505 | ) | (3,003 | ) | |||||||
Total interest rate sensitive liabilities | 28,345,408 | (94,044 | ) | (187,661 | ) | |||||||
Total net change | 1,935 | 3,862 |
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2007
FAIR VALUE | +50bps | +100bps | ||||||||||
Assets | ||||||||||||
Held To Maturity Securities | 1,662,108 | (22,521 | ) | (44,939 | ) | |||||||
Loans | 38,324,676 | (120,644 | ) | (240,740 | ) | |||||||
Customer’s acceptances | 12,957 | (6 | ) | (11 | ) | |||||||
Total interest rate sensitive assets | 39,999,741 | (143,170 | ) | (285,690 | ) |
FAIR VALUE | +50bps | +100bps | ||||||||||
Liabilities | ||||||||||||
Checking Accounts — Saving Deposits | 19,063,969 | (67,943 | ) | (135,577 | ) | |||||||
Time Deposits | 14,791,980 | (29,189 | ) | (58,245 | ) | |||||||
Bank acceptances outstandings | 12,957 | (6 | ) | (11 | ) | |||||||
Interbank borrowings | 4,792,533 | (5,521 | ) | (11,016 | ) | |||||||
Long term debt | 2,778,855 | (32,746 | ) | (65,343 | ) | |||||||
Total interest rate sensitive liabilities | 41,440,295 | (135,404 | ) | (270,191 | ) | |||||||
Total net change | (7,767 | ) | (15,498 | ) |
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• | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Bank; | ||
• | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Bank are being made only in accordance with authorizations of the Bank’s management and directors; and | ||
• | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Bank’s assets that could have a material effect on the financial statements. |
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1.(2) | English Translation of Corporate by-laws (estatutos sociales) of the registrant, as amended on March 01, 2007. | |
2.(1) | The Deposit Agreement entered into between Bancolombia and The Bank of New York, as amended. | |
4.1(2) | Master Stock Purchase Agreement among Bancolombia (Panama) S.A. and the Majority Shareholders of Banagrícola S.A. and first amendment. | |
4.2(2) | Byssa Stock Purchase Agreement among Bancolombia (Panama) S.A. and the Majority Shareholders Bienes y Servicios S.A. | |
4.3(2) | English Summary of the Stock Sale Agreement among Bancolombia S.A. and Portal de Inversiones S.A. | |
7. | Selected Ratios’ Calculation. | |
8.1 | List of Subsidiaries. | |
11. | English translation of the Ethics Code of the registrant, as amended on June 23, 2008. | |
12.1 | CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated July 8, 2008. | |
12.2 | CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated July 8, 2008. | |
13.1 | CEO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated July 8, 2008. | |
13.2 | CFO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated July 8, 2008. | |
15(a) | English Translation of Corporate Governance Code (Código de Buen Gobierno) of the registrant, as amended on June 23, 2008. |
(1) | Incorporated by reference to the Registration Statement in Form F-6, filed by Bancolombia on January 14, 2008. | |
(2) | Incorporated by reference to the Bank’s Annual Report on Form 20-F for the year ended December 31, 2006 filed on May 10, 2007. |
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Page | ||||
Reports of Independent Registered Public Accounting Firms | F-2 | |||
F-7 | ||||
F-9 | ||||
F-11 | ||||
F-12 | ||||
F-14 | ||||
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Deloitte & Touche Ltda. Edificio Corficolombiana Calle 16 Sur No 43 A-49 Pisos 9 y 10 A.A 404 Nit 860.005.813-4 Medellin Colombia | ||
Tel: 57(4) 313 56 54 | ||
Fax: 57(4) 313 93 43 | ||
www.deloitte.com/co |
Una firma miembro de | ||
Auditoría.Impuestos. Consultoría. Finanzas Corporativas | Deloitte Touche Tohmatsu |
F-2
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July 7, 2008
F-3
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Calle 55 E.
Apartado 0819-05710
EI Dorado Panama R. P.
Telefono (507) 206-9200
Fax (507) 264-5527
Panama, Republic of Panama
F-4
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Deloitte & Touche Ltda. Edificio Corficolombiana Calle 16 Sur No 43 A-49 Pisos 9 y 10 A.A 404 Nit 860.005.813-4 Medellin Colombia | ||
Tel: 57(4) 313 56 54 | ||
Fax: 57(4) 313 93 43 | ||
www.deloitte.com/co |
Una firma miembro de | ||
Auditoría.Impuestos. Consultoría. Finanzas Corporativas | Deloitte Touche Tohmatsu |
F-5
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July 7, 2008
F-6
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Notes | 2006 | 2007 | 2007(1) | |||||||||||||
U.S. Dollar | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash and due from banks | 4 | Ps | 1,548,752 | Ps | 3,618,619 | US$ | 1,796,055 | |||||||||
Overnight funds | 457,614 | 1,609,768 | 798,987 | |||||||||||||
Total cash and cash equivalents | 2,006,366 | 5,228,387 | 2,595,042 | |||||||||||||
Investment securities: | 5 | |||||||||||||||
Debt securities: | 5,530,559 | 5,596,051 | 2,777,527 | |||||||||||||
Trading securities | 2,605,852 | 1,916,012 | 950,987 | |||||||||||||
Available for sale | 1,810,584 | 1,954,593 | 970,137 | |||||||||||||
Held to maturity | 1,114,123 | 1,725,446 | 856,403 | |||||||||||||
Equity securities | 224,787 | 253,747 | 125,944 | |||||||||||||
Trading securities | 61,640 | 93,125 | 46,221 | |||||||||||||
Available for sale | 163,147 | 160,622 | 79,723 | |||||||||||||
Market value allowance | (77,585 | ) | (75,547 | ) | (37,496 | ) | ||||||||||
Total investment securities | 5,677,761 | 5,774,251 | 2,865,975 | |||||||||||||
Loans and financial leases: | 6 | |||||||||||||||
Commercial loans | 16,028,505 | 23,397,058 | 11,612,827 | |||||||||||||
Consumer loans | 3,587,260 | 6,593,211 | 3,272,455 | |||||||||||||
Small business loans | 91,078 | 129,900 | 64,474 | |||||||||||||
Mortgage loans | 1,385,445 | 2,883,628 | 1,431,251 | |||||||||||||
Financial leases | 3,553,286 | 4,698,827 | 2,332,202 | |||||||||||||
Allowance for loans and financial leases losses | 7 | (834,183 | ) | (1,457,151 | ) | (723,238 | ) | |||||||||
Loans and financial leases, net | 23,811,391 | 36,245,473 | 17,989,971 | |||||||||||||
Accrued interest receivable on loans and financial leases: | ||||||||||||||||
Accrued interest receivable on loans and financial leases | 266,934 | 431,863 | 214,350 | |||||||||||||
Allowance for accrued interest losses | 7 | (11,644 | ) | (33,303 | ) | (16,530 | ) | |||||||||
Interest accrued, net | 255,290 | 398,560 | 197,820 | |||||||||||||
Customers’ acceptances and derivatives | 8 | 166,395 | 196,001 | 97,283 | ||||||||||||
Accounts receivable, net | 9 | 562,598 | 716,106 | 355,430 | ||||||||||||
Premises and equipment, net | 10 | 712,722 | 855,818 | 424,774 | ||||||||||||
Operating leases, net | 11 | 167,307 | 488,333 | 242,378 | ||||||||||||
Foreclosed assets, net | 15 | 18,611 | 32,294 | 16,029 | ||||||||||||
Prepaid expenses and deferred charges | 12 | 46,462 | 137,901 | 68,445 | ||||||||||||
Goodwill | 14 | 40,164 | 977,095 | 484,968 | ||||||||||||
Other | 13 | 675,265 | 580,642 | 288,194 | ||||||||||||
Reappraisal of assets | 16 | 348,364 | 520,788 | 258,486 | ||||||||||||
Total assets | Ps | 34,488,696 | Ps | 52,151,649 | US$ | 25,884,795 | ||||||||||
Memorandum accounts | 25 | Ps | 153,080,705 | Ps | 182,209,139 | US$ | 90,437,143 | |||||||||
F-7
Table of Contents
Notes | 2006 | 2007 | 2007(1) | |||||||||||||
U.S. Dollar | ||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||
Deposits | ||||||||||||||||
Non-interest bearing: | Ps | 4,580,649 | Ps | 5,804,724 | US$ | 2,881,100 | ||||||||||
Checking accounts | 4,121,506 | 5,300,864 | 2,631,015 | |||||||||||||
Other | 459,143 | 503,860 | 250,085 | |||||||||||||
Interest bearing: | 18,635,818 | 28,569,426 | 14,180,064 | |||||||||||||
Checking accounts | 1,244,348 | 1,567,411 | 777,964 | |||||||||||||
Time deposits | 7,377,586 | 14,304,727 | 7,099,966 | |||||||||||||
Savings deposits | 10,013,884 | 12,697,288 | 6,302,134 | |||||||||||||
Total deposits | 23,216,467 | 34,374,150 | 17,061,164 | |||||||||||||
Overnight funds | 1,007,045 | 2,005,490 | 995,399 | |||||||||||||
Bank acceptances outstanding | 64,030 | 55,208 | 27,402 | |||||||||||||
Interbank borrowings | 17 | 1,066,845 | 1,506,611 | 747,787 | ||||||||||||
Borrowings from development and other domestic banks(3) | 18 | 2,449,581 | 3,344,635 | 1,660,066 | ||||||||||||
Accounts payable | 988,723 | 1,714,418 | 850,929 | |||||||||||||
Accrued interest payable | 190,121 | 286,627 | 142,264 | |||||||||||||
Other liabilities | 19 | 387,697 | 503,433 | 249,871 | ||||||||||||
Long-term debt | 20 | 1,302,702 | 2,850,730 | 1,414,923 | ||||||||||||
Accrued expenses | 21 | 119,984 | 218,860 | 108,628 | ||||||||||||
Minority interest in consolidated subsidiaries | 48,889 | 92,217 | 45,771 | |||||||||||||
Total liabilities | 30,842,084 | 46,952,379 | 23,304,204 | |||||||||||||
Stockholders’ equity(2) | 22, 24 | |||||||||||||||
Subscribed and paid in capital: | 430,684 | 460,684 | 228,655 | |||||||||||||
Nonvoting preference shares | 121,422 | 151,422 | 75,157 | |||||||||||||
Common shares | 309,262 | 309,262 | 153,498 | |||||||||||||
Retained earnings: | 3,063,136 | 4,446,527 | 2,206,976 | |||||||||||||
Appropriated | 23 | 2,313,607 | 3,359,604 | 1,667,496 | ||||||||||||
Unappropriated | 749,529 | 1,086,923 | 539,480 | |||||||||||||
Reappraisal of assets | 16 | 140,693 | 319,646 | 158,652 | ||||||||||||
Gross unrealized net gain or loss on investments | 12,099 | (27,587 | ) | (13,692 | ) | |||||||||||
Stockholders’ equity | 3,646,612 | 5,199,270 | 2,580,591 | |||||||||||||
Total liabilities and stockholders’ equity | Ps | 34,488,696 | Ps | 52,151,649 | US$ | 25,884,795 | ||||||||||
Memorandum accounts | 25 | Ps | 153,080,705 | Ps | 182,209,139 | US$ | 90,437,143 | |||||||||
(1) | See note 2 (ff). | ||
(2) | A summary of significant adjustments to stockholders’ equity that would be required if U.S. GAAP had been applied is disclosed in Note 31. | ||
(3) | Included Domestic banks borrowings. |
F-8
Table of Contents
Note | 2005(2) | 2006 | 2007 | 2007(1) | ||||||||||||||||
U.S. Dollar | ||||||||||||||||||||
Interest income: | ||||||||||||||||||||
Interest on loans | Ps | 2,050,274 | Ps | 2,312,525 | Ps | 3,707,751 | US$ | 1,840,294 | ||||||||||||
Interest on investment securities | 824,709 | 273,197 | 416,644 | 206,796 | ||||||||||||||||
Overnight funds | 33,629 | 43,863 | 115,324 | 57,240 | ||||||||||||||||
Leasing | 291,472 | 384,147 | 570,689 | 283,254 | ||||||||||||||||
Total interest income | 3,200,084 | 3,013,732 | 4,810,408 | 2,387,584 | ||||||||||||||||
Interest expense | ||||||||||||||||||||
Checking accounts | 20,311 | 32,676 | 39,076 | 19,396 | ||||||||||||||||
Time deposits | 449,367 | 459,513 | 816,688 | 405,352 | ||||||||||||||||
Saving deposits | 241,889 | 264,381 | 461,437 | 229,028 | ||||||||||||||||
Total interest expense on deposits | 711,567 | 756,570 | 1,317,201 | 653,776 | ||||||||||||||||
Interbank borrowings | 54,630 | 94,872 | 109,843 | 54,518 | ||||||||||||||||
Borrowings from development and other domestic banks | 156,509 | 180,507 | 274,484 | 136,237 | ||||||||||||||||
Overnight funds | 73,910 | 100,876 | 131,127 | 65,083 | ||||||||||||||||
Long-term debt | 153,658 | 113,404 | 169,435 | 84,097 | ||||||||||||||||
Total interest expense | 1,150,274 | 1,246,229 | 2,002,090 | 993,711 | ||||||||||||||||
Net interest income | 2,049,810 | 1,767,503 | 2,808,318 | 1,393,873 | ||||||||||||||||
�� | ||||||||||||||||||||
Provision for loan, accrued interest losses and other receivables, net | 7 | (185,404 | ) | (266,107 | ) | (707,865 | ) | (351,340 | ) | |||||||||||
Recovery of charged-off loans | 61,829 | 70,746 | 89,997 | 44,669 | ||||||||||||||||
Provision for foreclosed assets and other assets | (63,969 | ) | (44,353 | ) | (60,531 | ) | (30,044 | ) | ||||||||||||
Recovery of provisions for foreclosed assets and other assets | 56,504 | 89,532 | 81,364 | 40,384 | ||||||||||||||||
Total net allowances | (131,040 | ) | (150,182 | ) | (597,035 | ) | (296,331 | ) | ||||||||||||
Net interest income after provision for loans and accrued interest losses | 1,918,770 | 1,617,321 | 2,211,283 | 1,097,542 | ||||||||||||||||
Commissions from banking services | 101,355 | 162,273 | 324,352 | 160,986 | ||||||||||||||||
Electronic services and ATMs fees | 101,299 | 85,049 | 80,711 | 40,060 | ||||||||||||||||
Branch network services | 48,984 | 62,403 | 104,601 | 51,917 | ||||||||||||||||
Collections and payments fees | 56,670 | 74,708 | 130,421 | 64,733 | ||||||||||||||||
Credit card merchant fees | 10,076 | 8,150 | 39,191 | 19,452 | ||||||||||||||||
Credit and debit card annual fees | 205,606 | 238,898 | 258,937 | 128,520 | ||||||||||||||||
Checking fees | 54,846 | 60,083 | 67,438 | 33,472 | ||||||||||||||||
Warehouse services | 62,155 | 72,494 | — | — | ||||||||||||||||
Fiduciary activities | 60,131 | 62,114 | 69,200 | 34,347 | ||||||||||||||||
Pension Plan Administration | — | — | 82,453 | 40,925 | ||||||||||||||||
Brokerage fees | 68,231 | 67,034 | 62,493 | 31,018 | ||||||||||||||||
Check remittance | 10,579 | 11,040 | 22,762 | 11,298 | ||||||||||||||||
International operations | 36,484 | 34,281 | 43,643 | 21,662 | ||||||||||||||||
F-9
Table of Contents
Note | 2005(2) | 2006 | 2007 | 2007(1) | ||||||||||||||||
U.S. Dollar | ||||||||||||||||||||
Fees and other service income | Ps | 816,416 | Ps | 938,527 | Ps | 1,286,202 | US$ | 638,390 | ||||||||||||
Fees and other service expenses | (48,087 | ) | (70,866 | ) | (116,453 | ) | (57,800 | ) | ||||||||||||
Total fees and income from services, net | 768,329 | 867,661 | 1,169,749 | 580,590 | ||||||||||||||||
Other operating income: | ||||||||||||||||||||
Net foreign exchange gains (expenses) | (53,361 | ) | 58,008 | 27,584 | 13,691 | |||||||||||||||
Forward contracts in foreign currency | 141,055 | 45,073 | 141,930 | 70,445 | ||||||||||||||||
Gains (losses) on sales of investments on equity securities | 8,097 | 75,697 | (15,034 | ) | (7,462 | ) | ||||||||||||||
Gains on sale of mortgage loan | — | 14,371 | 7,304 | 3,625 | ||||||||||||||||
Dividend income | 42,731 | 21,199 | 18,968 | 9,415 | ||||||||||||||||
Revenues from commercial subsidiaries | 45,020 | 40,323 | 101,148 | 50,203 | ||||||||||||||||
Insurance income | — | — | 8,013 | 3,977 | ||||||||||||||||
Communication, postage, rent and others | 10,406 | 16,762 | 17,572 | 8,722 | ||||||||||||||||
Total other operating income | 193,948 | 271,433 | 307,485 | 152,616 | ||||||||||||||||
Total operating income | 2,881,047 | 2,756,415 | 3,688,517 | 1,830,748 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Salaries and employee benefits | 615,121 | 690,117 | 835,150 | 414,516 | ||||||||||||||||
Bonus plan payments | 26,826 | 35,771 | 84,226 | 41,804 | ||||||||||||||||
Compensation | 8,030 | 6,375 | 23,463 | 11,646 | ||||||||||||||||
Administrative and other expenses | 27 | 793,179 | 882,182 | 1,071,139 | 531,645 | |||||||||||||||
Deposit security, net | 55,050 | 67,813 | 49,113 | 24,377 | ||||||||||||||||
Donation expenses | 615 | 22,596 | 15,375 | 7,631 | ||||||||||||||||
Depreciation | 10 | 87,633 | 104,553 | 122,835 | 60,968 | |||||||||||||||
Merger expenses | 45,703 | 35,779 | — | — | ||||||||||||||||
Goodwill amortization | 22,648 | 25,814 | 70,411 | 34,948 | ||||||||||||||||
Total operating expenses | 1,654,805 | 1,871,000 | 2,271,712 | 1,127,535 | ||||||||||||||||
Net operating income | 1,226,242 | 885,415 | 1,416,805 | 703,213 | ||||||||||||||||
Non-operating (expense) income: | ||||||||||||||||||||
Other income | 109,770 | 194,589 | 126,796 | 62,933 | ||||||||||||||||
Minority interest | (6,496 | ) | (6,352 | ) | (13,246 | ) | (6,574 | ) | ||||||||||||
Other expense | (105,120 | ) | (149,243 | ) | (81,549 | ) | (40,476 | ) | ||||||||||||
Total non-operating (expense) income | 28 | (1,846 | ) | 38,994 | 32,001 | 15,883 | ||||||||||||||
Income before income taxes | 1,224,396 | 924,409 | 1,448,806 | 719,096 | ||||||||||||||||
Income tax expense | 21 | (277,515 | ) | (174,880 | ) | (361,883 | ) | (179,616 | ) | |||||||||||
Net income | Ps | 946,881 | Ps | 749,529 | Ps | 1,086,923 | US$ | 539,480 | ||||||||||||
Earnings per share | Ps | 1,301 | Ps | 1,030 | Ps | 1,433 | US$ | 0.71 | ||||||||||||
(1) | See Note 2 (ff). | ||
(2) | The consolidated statement of operations for the year ended December 31, 2005 includes Conavi’s and Corfinsura’s results since the beginning of the year. |
F-10
Table of Contents
Non Voting Preference Shares | Voting Common Shares | Retained Earnings | Surplus | Total | ||||||||||||||||||||||||||||||||
Gross unrealized | ||||||||||||||||||||||||||||||||||||
gain or loss on | ||||||||||||||||||||||||||||||||||||
Appro- | Unappro- | Reappraisal | investments | Stockholders’ | ||||||||||||||||||||||||||||||||
Number | Par Value | Number | Par Value | priated | priated | of assets | available for sale | equity | ||||||||||||||||||||||||||||
Balance at December 31, 2004 | 178,435,787 | Ps | 101,579 | 398,259,608 | Ps | 253,540 | Ps | 1,010,481 | Ps | 578,678 | Ps | 42,237 | Ps | 104,208 | Ps | 2,090,723 | ||||||||||||||||||||
Net income | — | — | — | — | — | 946,881 | — | — | 946,881 | |||||||||||||||||||||||||||
Transfer to appropriated retained earnings | — | — | — | — | 578,678 | (578,678 | ) | — | — | — | ||||||||||||||||||||||||||
Issuance of preference and common shares | 39,686,634 | 19,843 | 111,444,976 | 55,722 | 160,646 | — | — | — | 236,211 | |||||||||||||||||||||||||||
Valuation of investment | — | — | — | — | — | — | (179,033 | ) | 31,690 | (147,343 | ) | |||||||||||||||||||||||||
Merger effect | — | — | — | — | 193,673 | — | 247,275 | (12,650 | ) | 428,298 | ||||||||||||||||||||||||||
Dividends declared | — | — | — | — | (216,838 | ) | — | — | — | (216,838 | ) | |||||||||||||||||||||||||
Other | — | — | — | — | 39,358 | — | — | — | 39,358 | |||||||||||||||||||||||||||
Balance at December 31, 2005 | 218,122,421 | Ps | 121,422 | 509,704,584 | Ps | 309,262 | Ps | 1,765,998 | Ps | 946,881 | Ps | 110,479 | Ps | 123,248 | Ps | 3,377,290 | ||||||||||||||||||||
Net income | — | — | — | — | — | 749,529 | — | — | 749,529 | |||||||||||||||||||||||||||
Transfer to appropriated retained earnings | — | — | — | — | 946,881 | (946,881 | ) | — | — | |||||||||||||||||||||||||||
Valuation of investment | — | — | — | — | — | 30,214 | (111,149 | ) | (80,935 | ) | ||||||||||||||||||||||||||
Dividends declared | — | — | — | — | (369,736 | ) | — | — | — | (369,736 | ) | |||||||||||||||||||||||||
Other | — | — | — | — | (29,536 | ) | — | — | — | (29,536 | ) | |||||||||||||||||||||||||
Balance at December 31,2006 | 218,122,421 | Ps | 121,422 | 509,704,584 | Ps | 309,262 | Ps | 2,313,607 | Ps | 749,529 | Ps | 140,693 | Ps | 12,099 | Ps | 3,646,612 | ||||||||||||||||||||
Net income | — | — | — | — | — | 1,086,923 | — | — | 1,086,923 | |||||||||||||||||||||||||||
Transfer to appropriated retained earnings | — | — | — | — | 749,529 | (749,529 | ) | — | — | |||||||||||||||||||||||||||
Issuance of preference and common shares | 59,999,998 | 30,000 | — | — | 897,612 | — | — | — | 927,612 | |||||||||||||||||||||||||||
Valuation of investment | — | — | — | — | — | 178,953 | (39,686 | ) | 139,267 | |||||||||||||||||||||||||||
Dividends declared | — | — | — | — | (403,164 | ) | — | — | — | (403,164 | ) | |||||||||||||||||||||||||
Other | — | — | — | — | (197,980 | ) | — | — | — | (197,980 | ) | |||||||||||||||||||||||||
Balance at December 31,2007 | 278,122,419 | 151,422 | 509,704,584 | 309,262 | 3,359,604 | 1,086,923 | 319,646 | (27,587 | ) | 5,199,270 | ||||||||||||||||||||||||||
Balance at December 31, 2007(1) | 278,122,419 | US$ | 75,157 | 509,704,584 | US$ | 153,498 | US$ | 1,667,496 | US$ | 539,480 | US$ | 158,652 | US$ | (13,692 | ) | US$ | 2,580,591 | |||||||||||||||||||
(1) | See Note 2 (ff). | ||
(2) | The consolidated statement of operations for the year ended December 31, 2005, includes Conavi’s and Corfinsura’s results since the beginning of the year. |
F-11
Table of Contents
2005 | 2006 | 2007 | 2007(1) | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | Ps | 946,881 | Ps | 749,529 | Ps | 1,086,923 | US$ | 539,480 | ||||||||
Adjustments to reconcile net income to net cash used by operating activities: | ||||||||||||||||
Depreciation | 87,633 | 104,553 | 122,835 | 60,968 | ||||||||||||
Amortization | 77,111 | 42,905 | 110,076 | 54,635 | ||||||||||||
Minority interest | 5,862 | (251 | ) | 43,328 | 21,505 | |||||||||||
Provision for loan, accrued interest and accounts receivable losses | 395,369 | 600,273 | 1,268,241 | 629,475 | ||||||||||||
Provision for foreclosed assets | 44,665 | 22,044 | 35,783 | 17,760 | ||||||||||||
Provision for losses on investment securities and equity investments | 10,317 | 12,200 | 7,313 | 3,630 | ||||||||||||
Provision for premises and equipment | 302 | 914 | 2,925 | 1,452 | ||||||||||||
Provision for other assets | 1,825 | 1,600 | 7,914 | 3,928 | ||||||||||||
Reversal of provision for investments | (5,330 | ) | (27,593 | ) | (20,722 | ) | (10,285 | ) | ||||||||
Reversal of provision for loans and accounts receivable | (220,224 | ) | (334,082 | ) | (560,241 | ) | (278,069 | ) | ||||||||
Reversal of provision for foreclosed assets | (45,445 | ) | (54,298 | ) | (52,995 | ) | (26,304 | ) | ||||||||
Reversal of provision for other assets | (3,943 | ) | (880 | ) | (244 | ) | (121 | ) | ||||||||
Reversal of provision for premises and equipment | (1,787 | ) | (6,845 | ) | (7,537 | ) | (3,741 | ) | ||||||||
Realized and unrealized (gain) loss on derivative financial instruments | (67,180 | ) | 15,449 | (117,653 | ) | (58,395 | ) | |||||||||
Valuation gain on investment securities | (476,139 | ) | (159,249 | ) | (355,190 | ) | (176,294 | ) | ||||||||
Foreclosed assets donation | 45 | 20,888 | 10,708 | 5,315 | ||||||||||||
(Increase) in accounts receivable | (514,867 | ) | (38,311 | ) | (344,052 | ) | (170,765 | ) | ||||||||
Decrease (increase) in other assets | 92,256 | (187,584 | ) | (1,336,181 | ) | (663,196 | ) | |||||||||
Increase (Decrease) in accounts payable | 593,764 | (253,531 | ) | 822,201 | 408,088 | |||||||||||
Increase (Decrease) in other liabilities | 227,036 | (72,270 | ) | 115,735 | 57,443 | |||||||||||
(Increase) in loans | (8,521,859 | ) | (6,182,386 | ) | (13,087,618 | ) | (6,495,869 | ) | ||||||||
Increase (Decrease) in estimated liabilities and allowances | 59,210 | (10,875 | ) | 98,876 | 49,076 | |||||||||||
Net cash used in operating activities | (7,314,498 | ) | (5,757,800 | ) | (12,149,575 | ) | (6,030,284 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||||||
(Increase) Decrease in customers’ acceptances | Ps | (25,813 | ) | Ps | (47,520 | ) | Ps | 79,225 | Ps | 39,322 | ||||||
Proceeds from sales of premises and equipment | 92,815 | 23,284 | 15,280 | 7,584 | ||||||||||||
Proceeds from sales of foreclosed assets | 98,090 | 61,791 | 71,811 | 35,643 | ||||||||||||
Proceeds from sales of investments | — | 29,934 | 43,200 | 21,442 | ||||||||||||
(Purchases) of premises and equipment | (589,212 | ) | (230,992 | ) | (590,568 | ) | (293,121 | ) | ||||||||
(Purchases) sales of investment securities | (2,719,300 | ) | 2,815,501 | 189,224 | 93,919 | |||||||||||
Net cash (used in) provided by investing activities | (3,143,420 | ) | 2,651,998 | (191,828 | ) | (95,211 | ) | |||||||||
F-12
Table of Contents
2005 | 2006 | 2007 | 2007(1) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Dividends declared | (216,838 | ) | (369,736 | ) | (403,163 | ) | (200,105 | ) | ||||||||
Increase in deposits | 6,522,866 | 4,831,484 | 11,157,682 | 5,537,971 | ||||||||||||
Increase (decrease) in long-term debt | 1,095,781 | (345,610 | ) | 1,548,028 | 768,344 | |||||||||||
Increase (decrease) in overnight funds | 713,419 | (322,868 | ) | 998,445 | 495,565 | |||||||||||
Increase (decrease) in interbank borrowings and borrowings from development and other domestic banks | 2,823,352 | (411,124 | ) | 1,334,820 | 662,520 | |||||||||||
Issuance of preference and commons shares | — | — | 30,000 | 14,890 | ||||||||||||
Retained earnings (additional paid-in capital) | — | — | 897,612 | 445,518 | ||||||||||||
Net cash provided by financing activities | 10,938,580 | 3,382,146 | 15,563,424 | 7,724,703 | ||||||||||||
Increase in cash and cash equivalents | 480,662 | 276,344 | 3,222,021 | 1,599,208 | ||||||||||||
Cash and cash equivalents at beginning of year | 1,249,360 | 1,730,022 | 2,006,366 | 995,834 | ||||||||||||
Cash and cash equivalents at end of year | Ps | 1,730,022 | Ps | 2,006,366 | Ps | 5,228,387 | US$ | 2,595,042 | ||||||||
Supplemental disclosure of cash flows information: | ||||||||||||||||
Cash paid during the year for: | ||||||||||||||||
Interest | Ps | 1,033,420 | Ps | 1,238,419 | Ps | 1,905,585 | US$ | 945,812 | ||||||||
Income taxes | Ps | 190,014 | Ps | 161,967 | Ps | 122,477 | US$ | 60,790 | ||||||||
(1) | See note 2 (ff). |
F-13
Table of Contents
F-14
Table of Contents
Participation | Participation | |||||||||||||||
percentage | percentage | Date of | ||||||||||||||
Entity | Location | Business | Dec-2006 | Dec-2007 | creation | |||||||||||
Leasing Bancolombia S.A. | Colombia | Leasing | 100 | 100 | December 1978 | |||||||||||
Fiduciaria Bancolombia S.A. | Colombia | Trust | 98.81 | 98.81 | January 1992 | |||||||||||
Bancolombia Panamá S.A. | Panama | Banking | 100 | 100 | January 1973 | |||||||||||
Bancolombia Caymán | Cayman Islands | Banking | 100 | 100 | August 1987 | |||||||||||
Sistema de Inversiones y Negocios S.A. | Panama | Investments | 100 | 100 | September 1975 | |||||||||||
Sinesa Holding Company Ltd. | British Virgin Islands | Investments | 100 | 100 | June 1988 | |||||||||||
Future Net Inc. | Panama | E-commerce | 100 | 100 | November 2000 | |||||||||||
Banca de Inversión Bancolombia S.A. Corporación Financiera | Colombia | Investment banking | 100 | 100 | July 1994 | |||||||||||
Inversiones Valsimesa S.A. | Colombia | Investments | 71.75 | 71.75 | December 2006 | |||||||||||
Inmobiliaria Bancol S.A. | Colombia | Real estate broker | 99.09 | 99.09 | June 1995 | |||||||||||
Fundicom S.A. | Colombia | Metals engineering | 79.90 | 79.90 | May 2000 | |||||||||||
Valores Simesa S.A. | Colombia | Investments | 71.75 | 71.75 | December 2000 | |||||||||||
Todo UNO Colombia S.A. | Colombia | E-commerce | 89.92 | 89.92 | June 2001 | |||||||||||
Almacenes Generales de Depósito Mercantil S.A. ALMACENAR(1) | Colombia | Warehousing and logistics | 98.31 | — | February 1953 | |||||||||||
Unicargo de Colombia S.A. (2) | Colombia | Freight service | 98.41 | — | August 1994 | |||||||||||
Ditransa S.A. (2) | Colombia | Freight service | 52.73 | — | September 1994 | |||||||||||
Compañía de Financiamiento Comercial S.A. Sufinanciamiento | Colombia | Financial services | 99.98 | 99.99 | November 1971 | |||||||||||
Renting Colombia S.A. | Colombia | Operating leasing | 75.50 | 90.30 | October 1997 | |||||||||||
Patrimonio Autónomo Localiza(3) | Colombia | Car rental | 75.50 | — | December 2006 | |||||||||||
Renting Perú S.A.C.(4) | Peru | Operating leasing | — | 90.39 | January 2007 | |||||||||||
Tempo Rent a Car S.A.(4) | Colombia | Car rental | — | 90.80 | June 2007 | |||||||||||
Patrimonio Autónomo Renting Colombia | Colombia | Investments | — | 100 | December 2007 | |||||||||||
Suleasing Internacional S.A.(5) | Panama | Leasing | 100 | — | August 1993 | |||||||||||
Suleasing International USA, Inc. | USA | Leasing | 100 | 100 | July 2003 | |||||||||||
Suleasing Internacional do Brasil Locacao de Bens S.A. | Brazil | Leasing | 100 | 100 | December 2005 | |||||||||||
Inversiones CFNS Ltda. | Colombia | Investments | 100 | 100 | April 1998 | |||||||||||
Valores Bancolombia S.A. | Colombia | Securities brokerage | 100 | 100 | May 1991 | |||||||||||
Suvalor Panamá S.A. | Panama | Securities brokerage | 100 | 100 | April 2005 | |||||||||||
Bancolombia Puerto Rico Internacional, Inc | Puerto Rico | Banking | 100 | 100 | December 1997 | |||||||||||
Multienlace S.A. | Colombia | Contact center | 98.20 | 98.20 | March 1997 | |||||||||||
Inversiones IVL S.A. | Colombia | Investments | 98.31 | 98.25 | December 2006 |
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Participation | Participation | |||||||||||||||
percentage | percentage | Date of | ||||||||||||||
Entity | Location | Business | Dec-2006 | Dec-2007 | creation | |||||||||||
Factoring Bancolombia S.A | Colombia | Financial services | 99.97 | 99.99 | September 1980 | |||||||||||
Patrimonio Autónomo CV Sufinanciamiento | Colombia | Loan management | 100 | 100 | May 2006 | |||||||||||
Banagrícola S.A.(6) | Panama | Investments | — | 98.90 | March 2003 | |||||||||||
Banco Agrícola Panamá S.A.(7) | Panama | Banking | — | 98.90 | March 2002 | |||||||||||
Inversiones Financieras Banco Agrícola S.A.(7) | El Salvador | Investments | — | 98.08 | July 2001 | |||||||||||
Banco Agrícola S.A.(7) | El Salvador | Banking | — | 96.00 | January 1955 | |||||||||||
Arrendadora Financiera S.A.(7) | El Salvador | Leasing | — | 96.02 | November 2001 | |||||||||||
Credibac S.A. de CV(7) | El Salvador | Credit card services | — | 96.01 | July 2006 | |||||||||||
Bursabac S.A. de CV(7) | El Salvador | Securities brokerage | — | 98.08 | November 1994 | |||||||||||
AFP Crecer S.A.(7) | El Salvador | Pension fund | — | 98.32 | March 1998 | |||||||||||
Aseguradora Suiza Salvadoreña S.A.(7) | El Salvador | Insurance company | — | 94.70 | November 1969 | |||||||||||
Asesuisa Vida S.A.(7) | El Salvador | Insurance company | — | 94.70 | December 2001 |
(1) | It was divested in February 2007. | |
(2) | Subsidiaries of Almacenar S.A. which ceased to be in turn subsidiaries of the Bancolombia when Almacenar S.A. was divested in February 2007. | |
(3) | Trust liquidated in August 2007. | |
(4) | Companies created by Renting Colombia S.A. | |
(5) | Merged with Bancolombia Panamá S.A. in September 2007. | |
(6) | Company acquired in May 2007. | |
(7) | Companies acquired as a result of Banagrícola’s acquisition in May 2007. |
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• | High-volume: they are valued based on the daily weighted average trading price published by the exchange. |
• | Medium-volume: they are valued based on the average price published by the exchange, being the weighted average trading price on the last five days on which securities are traded. |
• | Low volume and unquoted: They are valued based on the increase or decrease according to the investor’s share of the variations in equity value calculated based on the most recent audited financial statements that cannot be older than six months from the valuation date, or more recent statements, if available. |
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• | The difference between the present value on the valuation date and the previous present value increases or decreases the value of the investment and is credited as income on income statement. The present value is calculated based on an internal rate of return established at the time of purchase. |
• | The difference between the market value and the present value of the investment increases or decreases its value and is recorded in the equity account as gross unrealized net gain or loss. |
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Long Term | Max. Amount | Short Term | Max. Amount | |||||||
Ranking | % | Ranking | % | |||||||
BB+, BB, BB- | Ninety (90) | 3 | Ninety (90) | |||||||
B+, B, B- | Seventy (70) | 4 | Fifty (50) | |||||||
CCC | Fifty (50) | 5 and 6 | Zero (0) | |||||||
DD, EE | Zero (0) |
Max. Registered | |||||
Category | Amount%(1) | Investment Characteristics | |||
B Acceptable risk, greater than normal | Eighty (80) | Present factors of uncertainty that could affect the capacity to continue adequately fulfilling debt service and weaknesses that could affect their financial situation. | |||
C Appreciable risk | Sixty (60) | Present medium-high probabilities of non-fulfillment of timely payments of capital and interest in their financial situation that may compromise the recovery of the investment. | |||
D Significant risk | Forty (40) | Present non-fulfillment of agreed terms of the security and material deficiencies in their financial situation, the probability of recovering the investment is highly doubtful. | |||
E Unrecoverable | Zero (0) | Recovery highly improbable. |
(1) | On the net nominal amortization values as of the valuation date for debt securities or the acquisition cost less allowances for equity securities. |
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Category | Consumer | |||
“A” Normal Risk | Current and up to 1 month past due | |||
“B” Acceptable Risk, Above Normal | 1-2 months past due | |||
“C” Appreciable Risk | 2-3 months past due | |||
“D” Significant Risk | 3-6 months past due | |||
“E” Risk of Unrecoverability | over 6 months past due |
Category | Small Business Loans | Mortgage | ||||||
“A” Normal Risk | Current and up to 1 month past due | Current and up to 2 months past due | ||||||
“B” Acceptable Risk, Above Normal | 1-2 months past due | 2-5 months past due | ||||||
“C” Appreciable Risk | 2-3 months past due | 5-12 months past due | ||||||
“D” Significant Risk | 3-4 months past due | 12-18 months past due | ||||||
“E” Risk of Unrecoverability | over 4 months past due | over 18 months past due |
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Category | Commercial | |||
“A” Normal Risk | Current and up to 1 month past due | |||
“B” Acceptable Risk, Above Normal | 1-3 months past due | |||
“C” Appreciable Risk | 3-6 months past due | |||
“D” Significant Risk | 6-12 months past due | |||
“E” Risk of Unrec overability | over 12 months past due |
Category | Commercial | |||
“AA” | Current and up to 1 month past due | |||
“A” | 1-2 months past due | |||
“BB” | 2-3 months past due | |||
“B” | 3-4 months past due | |||
“CC” | 4-5 months past due | |||
Risk of Unrecoverability | over 5 months past due |
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Type of loan and financial lease | Arrears in excess of: | |||
Mortgage | 2 months | |||
Consumer | 2 months | |||
Small business loans | 1month | |||
Commercial | 3 months |
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Minimum provision percentage | ||||||||
Category | net of guarantees | Minimum provision percentage | ||||||
A | 0 | % | 1 | % | ||||
B | 1 | % | 2.20 | % |
Category | Additional Provision | |||
A | 0.60 | % | ||
B | 1.80 | % |
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1. | Probability of Default (PD): This corresponds to the probability of the debtors within a specific portfolio of commercial loans defaulting on their obligations in a period of twelve (12) months (according to the cases described in subsection b of section 1.3.3.1 of Chapter II of the Basic Accounting Circular). The probability of default is defined according to matrixes issued by the Superintendency of Finance, which are updated every year in May and come into full force and effect as of the following July, based on the terms and conditions specified by the Superintendency. |
Matrix B | Non-fulfillment | |||||||||||||||
Commercial | Corporate | Small Business | Medium Business | Individuals | ||||||||||||
AA | 2.19 | % | 7.52 | % | 4.19 | % | 8.22 | % | ||||||||
A | 3.54 | % | 8.64 | % | 6.32 | % | 9.41 | % | ||||||||
BB | 14.13 | % | 20.26 | % | 18.49 | % | 22.36 | % | ||||||||
B | 15.22 | % | 24.15 | % | 21.45 | % | 25.81 | % | ||||||||
CC | 23.35 | % | 33.57 | % | 26.70 | % | 37.01 | % | ||||||||
Non-fulfillment | 100 | % | 100 | % | 100 | % | 100 | % |
2. | The loss given default (LGD): This is defined as the economic deterioration sustained by a company should any of the events of default, as referred to in subsection b of section 1.3.3.1 of Chapter II of the Basic Accounting Circular, arise. The LGD for debtors classified in the default category would suffer a gradual increase according to the amount of days laPsing after being classified in said category. The LGD per type of guarantee is as follows: |
Days after | Days after | |||||||||||||||||||
Type of Collateral | LGD | non-fulfillment | New LGD | non-fulfillment | New LGD | |||||||||||||||
Inadmissible guarantee | 55 | % | 270 | 70 | % | 540 | 100 | % | ||||||||||||
Subordinate loans | 75 | % | 270 | 90 | % | 540 | 100 | % | ||||||||||||
Admissible financial collateral | 0-12 | % | — | — | — | — | ||||||||||||||
Residential and commercial real estate | 40 | % | 540 | 70 | % | 1080 | 100 | % | ||||||||||||
Leased real estate | 35 | % | 540 | 70 | % | 1080 | 100 | % | ||||||||||||
Leased assets different from real estate | 45 | % | 360 | 80 | % | 720 | 100 | % | ||||||||||||
Other collaterals | 50 | % | 360 | 80 | % | 720 | 100 | % | ||||||||||||
Collection rights | 45 | % | 360 | 80 | % | 720 | 100 | % | ||||||||||||
No guarantee | 55 | % | 210 | 80 | % | 420 | 100 | % |
3. | Exposure at Default (EAD): Defined as the total balance outstanding, conformed by the principal, interests and any other conceept owed by the debtor. |
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Home Mortgage % | ||||||||||||
Capital | ||||||||||||
On Guaranteed | On Non- Guaranteed | |||||||||||
Portion | Portion | Interest/Other | ||||||||||
A- Normal Risk | 1 | 1 | 1 | |||||||||
B- Acceptable Risk, Above Normal | 3.2 | 100 | 100 | |||||||||
C- Appreciable Risk | 10 | 100 | 100 | |||||||||
D- Significant Risk | 20 | 100 | 100 | |||||||||
E- Risk of Unrecoverability | 30 | 100 | 100 |
Commercial % | ||||||||
Category | Capital | Interest/Other | ||||||
A- Normal Risk | 1 | 1 | ||||||
B- Acceptable Risk, Above Normal | 3.2 | 3.2 | ||||||
C- Appreciable Risk | 20 | 100 | ||||||
D- Significant Risk | 50 | 100 | ||||||
E- Risk of Unrecoverability | 100 | 100 |
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Time elapsed from default date to security non-execution | ||||||||
Appropriate mortgage | ||||||||
% Cover of security | security/escrow | Non-mortgage security | ||||||
70 | 0-18 months | 0 -12 months | ||||||
50 | 18-24 months | 12-24 months | ||||||
30 | 24-30 months | — | ||||||
15 | 30-36 months | — | ||||||
— | Over 36 months | Over 24 months |
• | In the case of mortgage collateral consisting of property to be used for housing purposes, the market value shall be the initial appraisal value of the collateral duly adjusted according to the housing price index published by the National Planning Department. The value shall be updated at least on a quarterly basis, using the aforementioned index. |
• | In the case of mortgage collateral consisting of property different than housing, the market value shall be the appraisal value of the property given over in guarantee when the loan was issued or the new appraisal value as subsequently calculated on a periodic basis. |
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Due to default on | |||
a) | More than twelve (12) successive monthly payment installments, as of the date on which the amount is credited to the individual long-term mortgage loan, according to the provisions of Law 546 of 1999. | ||
Due to failure to pay an | |||
b) | If the credit institution has started collection proceeding against the mortgagor prior to the expiry of the term of default established in the prior section. | ||
c) | Mortgage credits for more than one dwelling per person. | ||
d) | Due to waiving the amount relieved to other loans | ||
e) | Amounts credited are higher than those due |
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• | Provision of 100% of all amounts past due (capital, interest and other items). |
• | One hundred eighty (180) days past due for consumer and small business loans. |
• | Three hundred sixty (360) days past due for commercial loans. |
• | One thousand six hundred twenty (1620) days past due for mortgage loans. |
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• | The initial value recorded is the value specified in the court award or the one agreed upon by the debtors. |
• | When foreclosed assets are not in conditions to be immediately disposed of their cost increases with all those expenses required in order to get said assets ready for sale. |
• | If the proceeds of the sale are more than the settlement value agreed upon with the debtor, that difference is recorded as accounts payable to the debtor. If the proceeds of sale are expected to be insufficient to cover the outstanding debt, the difference must be immediately recorded on the statement of operations as a non-operating expense. |
• | Moveable assets received in payment corresponding to investment securities are valued by applying the criteria indicated in this note under letter (h) Investments, but taking into account provision requirements for the periods referred to below. |
• | When the commercial value of the property is lower than its book value, a provision is recorded for the difference. |
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Buildings | 5 | % | ||
Equipment, furniture and fittings | 10 | % | ||
Computer equipment | 20 | % | ||
Vehicles | 20 | % | ||
Monitors, laptoPs and CPU’s | 33 | % |
F-39
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• | Software is amortized over a maximum of three years. |
• | The External Circular 034 issued in October 2006 by the Superintendency of Finance modified the instructions contained in Chapter XVII of the Basic Accounting Circular with regard to goodwill pertaining to new acquisitions and establishes that the value of the goodwill acquired shall be determined once the purchasing entity effectively obtains control over the acquired entity. This value must be distributed throughout each of the business segments, which must be fully identified, even at the book-keeping level. Acquired goodwill is not recorded in the case of acquisitions between controlling and controlled or subordinate entities, or between entities that have the same controller or controllers pursuant to Articles 260 and 261 in the Code of Commerce or between entities that make up a corporate group pursuant to Article 28 onwards of Law 222 of 1995. |
• | Acquired goodwill is recorded as a deferred charge and amortized on a monthly basis on the administrative and other expenses account over a term of twenty (20) years, unless the supervised entity voluntarily selects a shorter period of amortization. Annual amortization is determined on an exponential basis. The different business lines is appraised on an annual basis using technical value appraisal methods performed by an expert, whose suitability and independence has been previously rated by the Superintendency of Finance. |
• | In the case of goodwill already acquired by the Bank and its subordinates on the date when this regulation came into full force and effect, the current amortization term was maintained. With regard to the acquisition of equity securities, prior to the accounting, the Bank carried out an independent appraisal of each business, taking into account the period in which the investment is recovered, the amount of goodwill involved, and the impact of such goodwill on the income statement. Based on the aforementioned evaluation, the amortization period was determined, which does not in any case exceed the terms stipulated in the applicable rules and regulations. |
• | Stationery is expensed when consumed. |
• | Bonuses under the voluntary retirement plan are amortized as permitted by the Superintendency of Finance. |
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• | The discount on the placement of investment securities is amortized over the term specified for the redemption of these same. |
• | Contributions and affiliations are amortized over the period prepaid. |
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• | The Bank has acquired a right, and therefore has an obligation; |
• | Payment may be demanded or is probable; and |
• | The provision is justifiable, quantifiable and verifiable. |
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F-46
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2006 | 2007 | |||||||
Assets: | ||||||||
Cash and due from banks | US$ | 130,867 | US$ | 709,099 | ||||
Overnight funds | 55,090 | 746,919 | ||||||
Investment securities | 621,604 | 802,648 | ||||||
Loans, net | 1,636,001 | 5,116,185 | ||||||
Customers’ acceptances and derivatives | (339,803 | ) | (659,910 | ) | ||||
Accounts receivable | 36,381 | 91,158 | ||||||
Premises and equipment, net | 6,230 | 68,392 | ||||||
Other assets | 94,918 | 667,486 | ||||||
Total foreign currency assets | US$ | 2,241,288 | US$ | 7,541,977 | ||||
Liabilities: | ||||||||
Deposits | 1,338,157 | 4,823,721 | ||||||
Bank acceptances outstanding | 27,520 | 20,971 | ||||||
Borrowings from development and other domestic banks | 1,333 | 279,768 | ||||||
Interbank borrowings | 476,527 | 747,787 | ||||||
Other liabilities | 186,175 | 1,321,228 | ||||||
Total foreign currency liabilities | 2,029,712 | 7,193,475 | ||||||
Net foreign currency asset position | US$ | 211,576 | US$ | 348,502 | ||||
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2006 | 2007 | |||||||
Colombian peso denominated: | ||||||||
Cash | Ps | 1,148,238 | Ps | 1,554,035 | ||||
Due from the Colombian Central Bank | 75,025 | 521,113 | ||||||
Due from domestic banks | 12,047 | 96,016 | ||||||
Remittances of domestic negotiated checks in transit | 21,199 | 19,019 | ||||||
Provision | (741 | ) | (229 | ) | ||||
Total local currency | 1,255,768 | 2,189,954 | ||||||
Foreign currency: | ||||||||
Cash | 15,634 | 215,124 | ||||||
Due from the Colombian and El Salvador Central Bank | 2,962 | 564,779 | ||||||
Due from foreign banks | 270,495 | 546,012 | ||||||
Remittances of foreign negotiated checks in transit | 4,490 | 102,750 | ||||||
Provision | (597 | ) | — | |||||
Total foreign currency | 292,984 | 1,428,665 | ||||||
Total cash and due from banks | Ps | 1,548,752 | Ps | 3,618,619 | ||||
2006 | 2007 | |||||||
Trading Securities | ||||||||
Colombian peso denominated: | ||||||||
Colombian government | Ps | 814,342 | Ps | 938,768 | ||||
Colombian Central Bank | 55,559 | 19 | ||||||
Government entities | 16,784 | 368,419 | ||||||
Financial institutions | 1,014,276 | 338,693 | ||||||
Corporate bonds | 140,151 | 67,814 | ||||||
Equity securities | 30,716 | 69,718 | ||||||
Total local currency denominated | 2,071,828 | 1,783,431 | ||||||
Foreign currency denominated: | ||||||||
Colombian government | 153,677 | 125,868 | ||||||
Foreign government | — | 6,087 | ||||||
Government entities | 3,481 | 12,876 | ||||||
Financial institutions | 407,582 | 49,442 | ||||||
Corporate bonds | — | 8,026 | ||||||
Equity securities | 30,924 | 23,407 | ||||||
Total foreign currency denominated | 595,664 | 225,706 | ||||||
Total trading securities | 2,667,492 | 2,009,137 | ||||||
Allowance for trading securities | (7,622 | ) | (8,023 | ) | ||||
Trading securities, net | Ps | 2,659,870 | Ps | 2,001,114 | ||||
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2006 | 2007 | |||||||
Available for sale | ||||||||
Colombian peso denominated: | ||||||||
Colombian government | Ps | 679,056 | Ps | 549,007 | ||||
Government entities | — | 29,729 | ||||||
Financial institutions | 67,823 | 660,622 | ||||||
Other | 313,424 | 26,185 | ||||||
Total local currency denominated | 1,060,303 | 1,265,543 | ||||||
Foreign currency denominated: | ||||||||
Colombian government | 674,437 | 82,408 | ||||||
El Salvador Central Bank | — | 39,658 | ||||||
Government entities | — | 156,364 | ||||||
Foreign government | — | 379,467 | ||||||
Financial institutions | 61,687 | 31,153 | ||||||
Other | 14,157 | — | ||||||
Total foreign currency denominated | 750,281 | 689,050 | ||||||
Total Available for sale — Debt securities | Ps | 1,810,584 | Ps | 1,954,593 | ||||
Participation | Participation | |||||||||||||||
percentage at | percentage at | |||||||||||||||
December 31, 2006 | 2006 | December 31, 2007 | 2007 | |||||||||||||
Available for sale — equity securities | ||||||||||||||||
Todo Uno Services | 46.51 | % | Ps | 53,335 | 47.04 | % | Ps | 47,998 | ||||||||
Sociedad Administradora de Fondos de Pensiones y de Cesantías Protección S.A. | 23.44 | % | 19,481 | 23.44 | % | 19,481 | ||||||||||
Titularizadora Colombiana S.A. | 21.25 | % | 14,765 | 21.25 | % | 17,308 | ||||||||||
Promotora La Alborada | 25.81 | % | 14,001 | 25.81 | % | 14,001 | ||||||||||
Metrotel Redes | 28.42 | % | 10,568 | 28.42 | % | 10,568 | ||||||||||
Bolsa de Valores de Colombia | 8.54 | % | 5,509 | 5.87 | % | 8,578 | ||||||||||
Concesiones Urbanas S.A. | 33.32 | % | 8,446 | 33.33 | % | 8,449 | ||||||||||
Urbanización Chicó Oriental No. 2 Ltda. | 24.37 | % | 7,848 | 24.37 | % | 7,848 | ||||||||||
Redeban Red Multicolor | 20.36 | % | 4,396 | 20.36 | % | 4,396 | ||||||||||
Cadenalco S.A. Titularización | 3.33 | % | 3,929 | 3.33 | % | 4,378 | ||||||||||
Concesiones CCFc S.A. | 25.50 | % | 4,358 | 25.50 | % | 4,358 |
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Participation | Participation | |||||||||||||||
percentage at | percentage at | |||||||||||||||
December 31, 2006 | 2006 | December 31, 2007 | 2007 | |||||||||||||
Depósito Centralizado de Valores de Colombia Deceval S.A. | 13.58 | % | 3,735 | 13.58 | % | 4,209 | ||||||||||
Banco Latinoamericano de exportaciones BLADEX S.A. | 0.22 | % | 2,109 | 0.27 | % | 2,618 | ||||||||||
Terminal Maritimo Muelles El Bosque (1) | 7.01 | % | 3,390 | — | — | |||||||||||
Muelles El Bosque Operadores Portuarios (1) | 7.93 | % | 1,242 | — | — | |||||||||||
Sutecnología S.A.(2) | 49.50 | % | 1,535 | — | — | |||||||||||
ACH 4G S.A. | 20.00 | % | 1,225 | 20.00 | % | 1,225 | ||||||||||
Urbanización Sierras del Chicó Ltda. | 0.55 | % | 203 | 0.55 | % | 203 | ||||||||||
Serfinsa(3) | — | — | 31.11 | % | 1,314 | |||||||||||
Other | 3,072 | 3,690 | ||||||||||||||
Total equity securities | 163,147 | 160,622 | ||||||||||||||
Allowance for other-than-temporary impairment in value | (63,060 | ) | (53,717 | ) | ||||||||||||
Equity securities, net | Ps | 100,087 | Ps | 106,906 | ||||||||||||
(1) | These securities were sold during 2007. | |
(2) | In 2007, the bank acquired 50.50% of interest in Sutecnología which was subsequently merged with Leasing Bancolombia in December 2007. | |
(3) | Investment derived from Banagricola acquisition in May 2007. |
2006 | 2007 | |||||||||||||||
Valuation | Valuation | |||||||||||||||
Category | allowance | Category | allowance | |||||||||||||
Todo Uno Services | D | Ps | 44,218 | D | Ps | 34,849 | ||||||||||
Urbanización Chicó Oriental No. 2 Ltda. | E | 7,848 | E | 7,848 | ||||||||||||
Urbanización Sierras del Chicó Ltda. | E | 203 | E | 203 | ||||||||||||
Industria Colombo Andina Inca S.A. | E | 300 | E | 300 | ||||||||||||
Sociedad Portuaria San Andrés | E | 3 | — | |||||||||||||
Sociedad Promotora Siderúrgica Colombiana E.U. | E | 297 | D | 427 | ||||||||||||
Promotora La Alborada | E | 9,897 | E | 9,897 | ||||||||||||
Oikos Títulos de Inversión en Circulación | E | 287 | E | 186 | ||||||||||||
Others | 7 | 7 | ||||||||||||||
Ps | 63,060 | Ps | 53,717 | |||||||||||||
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2006 | 2007 | |||||||
Held to Maturity Securities | ||||||||
Colombian peso denominated: | ||||||||
Colombian government | Ps | 523,007 | Ps | 525,368 | ||||
Colombian Central Bank | — | 145 | ||||||
Government entities | 5,106 | 47,765 | ||||||
Financial institutions | 520,926 | 423,056 | ||||||
Corporate bonds | 30,712 | 41,710 | ||||||
Total Held to maturity securities | 1,079,751 | 1,038,044 | ||||||
Foreign currency denominated: | ||||||||
Colombian government | 12,394 | — | ||||||
El Salvador Central Bank | — | 546,552 | ||||||
Government entities | — | 853 | ||||||
Foreign government | — | 64,929 | ||||||
Financial institutions | — | 72,374 | ||||||
Other | 21,978 | 2,694 | ||||||
Total foreign currency denominated | 34,372 | 687,402 | ||||||
Total Held to maturity securities | 1,114,123 | 1,725,446 | ||||||
Allowance for other-than-temporary impairment in value | (6,903 | ) | (13,807 | ) | ||||
Total Held to maturity securities, net | Ps | 1,107,220 | Ps | 1,711,639 | ||||
Maturity | Balance | Yield(1) | ||||||
One year or less | 334,500 | 9.22 | % | |||||
After one year through five years | 1,013,792 | 9.39 | % | |||||
After five years through ten years | 460,543 | 7.37 | % | |||||
After ten years | 204,308 | 10.71 | % | |||||
Total | 2,013,143 | 9.04 | % | |||||
(1) | Calculated using internal return rate (IRR) as of December 31, 2007 |
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Financial | ||||||||||||||||||||||||
Classification | Mortgage | Commercial | Consumer | Small loan | leases | Total | ||||||||||||||||||
“A” Normal Risk | Ps | 1,288,334 | Ps | 15,216,763 | Ps | 3,327,404 | Ps | 79,225 | Ps | 3,398,819 | Ps | 23,310,545 | ||||||||||||
“B” Acceptable Risk | 53,139 | 431,653 | 111,728 | 3,566 | 108,688 | 708,774 | ||||||||||||||||||
“C” Appreciable Risk | 22,454 | 114,146 | 38,659 | 1,807 | 32,320 | 209,386 | ||||||||||||||||||
“D” Significant Risk | 11,833 | 173,634 | 50,937 | 1,203 | 5,156 | 242,763 | ||||||||||||||||||
“E” Unrecoverable | 9,685 | 92,309 | 58,532 | 5,277 | 8,303 | 174,106 | ||||||||||||||||||
Total loans and financial leases | Ps | 1,385,445 | Ps | 16,028,505 | Ps | 3,587,260 | Ps | 91,078 | Ps | 3,553,286 | Ps | 24,645,574 | ||||||||||||
Financial | ||||||||||||||||||||||||
Classification | Mortgage | Commercial | Consumer | Small loan | leases | Total | ||||||||||||||||||
“A” Normal Risk | Ps | 2,729,470 | Ps | 22,060,695 | Ps | 6,056,276 | Ps | 114,274 | Ps | 4,436,788 | Ps | 35,397,503 | ||||||||||||
“B” Acceptable Risk | 78,228 | 677,279 | 225,934 | 4,065 | 149,516 | 1,135,022 | ||||||||||||||||||
“C” Appreciable Risk | 35,067 | 157,559 | 81,695 | 2,047 | 23,717 | 300,085 | ||||||||||||||||||
“D” Significant Risk | 13,793 | 380,711 | 123,025 | 1,328 | 85,177 | 604,034 | ||||||||||||||||||
“E” Unrecoverable | 27,070 | 120,814 | 106,281 | 8,186 | 3,629 | 265,980 | ||||||||||||||||||
Total loans and financial leases | Ps | 2,883,628 | Ps | 23,397,058 | Ps | 6,593,211 | Ps | 129,900 | Ps | 4,698,827 | Ps | 37,702,624 | ||||||||||||
2006 | 2007 | |||||||
Ordinary restructurings | Ps | 551,293 | Ps | 849,522 | ||||
Extraordinary restructurings | 1,265 | 1,265 | ||||||
Under law 550 | 90,500 | 72,519 | ||||||
Under law 617 | 166,198 | 151,883 | ||||||
Creditor agreement proceedings | 5,582 | 4,092 | ||||||
Performance Agreement | 2,133 | 1,165 | ||||||
Interest and other receivables items | 9,415 | 16,164 | ||||||
826,386 | 1,096,610 | |||||||
Allowances for loan losses | (176,110 | ) | (211,779 | ) | ||||
Net of restructured loans | Ps | 650,276 | Ps | 884,831 | ||||
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2005 | 2006 | 2007 | ||||||||||
Balance at beginning of year | Ps | 434,378 | Ps | 705,882 | Ps | 834,183 | ||||||
Balance at beginning of period (Factoring Bancolombia) | — | 5,625 | — | |||||||||
Balance at beginning of period (Conavi, Corfinsura and subsidiaries) | 236,013 | — | — | |||||||||
Balace at beginning of period (Banagrícola’s subsidiaries)(1) | — | — | 147,357 | |||||||||
Provision for loan losses | 374,744 | 568,679 | 1,203,543 | |||||||||
Charge-offs | (115,455 | ) | (136,789 | ) | (186,273 | ) | ||||||
Effect of changes in exchange rate | (3,955 | ) | (1,210 | ) | (25,441 | ) | ||||||
Reclasification- Securitization | (11,947 | ) | — | — | ||||||||
Reversals of provisions | (207,896 | ) | (308,004 | ) | (516,218 | ) | ||||||
Balance at end of year | Ps | 705,882 | Ps | 834,183 | Ps | 1,457,151 | ||||||
Ratio of charge-offs to average outstanding loans | 0.66 | % | 0.63 | % | 0.60 | % | ||||||
(1) | Includes allowance for loan losses of Banco Agrícola, Banco Agrícola (Panamá), Arrendadora Financiera, Credibac, Aseguradora Suiza Salvadoreña and Asesuisa Vida. |
2005 | 2006 | 2007 | ||||||||||
Balance at beginning of year | Ps | 4,603 | Ps | 8,655 | Ps | 11,644 | ||||||
Balance at beginning of period (Factoring Bancolombia) | — | 481 | — | |||||||||
Balance at beginning of period (Conavi, Corfinsura and subsidiaries) | 9,609 | — | — | |||||||||
Provision | 12,379 | 14,825 | 34,543 | |||||||||
Charge-offs | (4,657 | ) | (4,126 | ) | (3,167 | ) | ||||||
Recoveries | (13,267 | ) | (8,159 | ) | (10,507 | ) | ||||||
Effect of changes in exchange rate | (12 | ) | (32 | ) | (210 | ) | ||||||
Balance at end of year | Ps | 8,655 | Ps | 11,644 | Ps | 33,303 | ||||||
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2006 | 2007 | |||||||
Customer Acceptances | ||||||||
Current | Ps | 57,202 | Ps | 53,889 | ||||
Overdue | 6,828 | 1,319 | ||||||
Total | 64,030 | 55,208 | ||||||
Derivatives | ||||||||
(Fair value of derivatives instruments) | ||||||||
Next Day Operations | ||||||||
Foreign exchange rights contracts bought | 245,494 | 15,527 | ||||||
Foreign exchange rights contracts sold | 241,641 | 10,575 | ||||||
Investment securities rights bought (local currency) | 50,242 | 78,381 | ||||||
Investment securities rights sold (local currency) | 115,455 | 67,322 | ||||||
Total rights | 652,832 | 171,805 | ||||||
Foreign exchange commitments contracts bought | (245,705 | ) | (15,433 | ) | ||||
Foreign exchange commitments contracts sold | (241,671 | ) | (10,656 | ) | ||||
Investment securities commitments bought (local currency) | (50,164 | ) | (77,898 | ) | ||||
Investment securities commitments sold (local currency) | (115,410 | ) | (67,495 | ) | ||||
Total obligations | (652,950 | ) | (171,482 | ) | ||||
Total Next Day Operations | (118 | ) | 323 | |||||
Forward Contracts | ||||||||
Foreign exchange rights contracts bought | 3,257,790 | 3,211,826 | ||||||
Foreign exchange rights contracts sold | 3,915,765 | 4,462,834 | ||||||
Investment securities rights bought (local currency) | 1,042,606 | 643,016 | ||||||
Investment securities rights sold (local currency) | 260,854 | 275,637 | ||||||
Other rights | — | 301 | ||||||
Total rights | 8,477,015 | 8,593,614 | ||||||
Foreign exchange commitments contracts bought | (3,369,751 | ) | (3,243,867 | ) | ||||
Foreign exchange commitments contracts sold | (3,757,637 | ) | (4,399,430 | ) | ||||
Investment securities commitments bought (local currency) | (1,031,758 | ) | (643,308 | ) | ||||
Investment securities commitments sold (local currency) | (271,562 | ) | (274,938 | ) | ||||
Total obligations | (8,430,708 | ) | (8,561,543 | ) | ||||
Total(1) | 46,307 | 32,071 | ||||||
Futures Contracts | ||||||||
Foreign exchange rights contracts bought | Ps | — | 30,117 | |||||
Foreign exchange rights contracts sold | 43,973 | 10,036 | ||||||
Investment securities rights bought (local currency) | 6 | 863 | ||||||
Investment securities rights sold (local currency) | 6 | 5,611 | ||||||
Other rights | — | 599 | ||||||
Total rights | 43,985 | 47,226 | ||||||
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2006 | 2007 | |||||||
Foreign exchange commitments contracts bought | — | (30,117 | ) | |||||
Foreign exchange commitments contracts sold | (43,973 | ) | (10,036 | ) | ||||
Investment securities commitments bought (local currency) | (6 | ) | (863 | ) | ||||
Investment securities commitments sold (local currency) | (6 | ) | (5,611 | ) | ||||
Other commitments | — | (603 | ) | |||||
Total obligations | (43,985 | ) | (47,230 | ) | ||||
Total Future Contracts | — | (4 | ) | |||||
SwaPs | ||||||||
Foreign exchange right contracts | 1,151,073 | 3,129,471 | ||||||
Interest rate rights contracts | 121,547 | 155,589 | ||||||
Foreign exchange commitments contracts | (1,098,591 | ) | (3,024,895 | ) | ||||
Interest rate commitments contracts | (116,558 | ) | (153,625 | ) | ||||
Total SwaPs | 57,471 | 106,540 | ||||||
Options | ||||||||
Foreign exchange call options | 86 | (1,062 | ) | |||||
Foreign exchange put options | (1,381 | ) | (141 | ) | ||||
CaPs | — | 3,066 | ||||||
Total Options | (1,295 | ) | 1,863 | |||||
Total customer acceptances and derivatives | Ps | 166,395 | Ps | 196,001 | ||||
(1) | As of December 31, 2006 includes forward contracts known in Colombia as “operaciones carrusel”. |
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2006(2) | 2007(2) | |||||||
Credit card compensation | Ps | 210,056 | Ps | 275,765 | ||||
Overnight funds sold | 1,048 | 2,394 | ||||||
Commissions | 34,843 | 46,527 | ||||||
Sierras del Chicó y Chicó Oriental | 4,289 | 4,467 | ||||||
Sale of Bank’s equity investments(1) | 45,200 | 49,744 | ||||||
Renting | 474 | 63 | ||||||
Advances to contractors and honoraries | 124,353 | 149,438 | ||||||
Commitment seller | 10,993 | 19,289 | ||||||
Warehousing services | 10,292 | — | ||||||
Dividends | 2,826 | 2,008 | ||||||
Treasury operations pending of paid by the customers | 1,193 | 2,500 | ||||||
Services and properties sells | 27,759 | 24,017 | ||||||
Employee advances | 367 | 5,835 | ||||||
Deposit security receivable (“Fogafin”) | 26,540 | 23,342 | ||||||
Insurance premium receivables | — | 32,525 | ||||||
Taxes | 7,538 | 10,447 | ||||||
Other credit card receivable | 6,883 | 11,219 | ||||||
International operations | 25,480 | 10,234 | ||||||
Accounts receivables in branches | 7,680 | 25,846 | ||||||
Other receivables | 36,999 | 54,850 | ||||||
Total accounts receivable | 584,813 | 750,510 | ||||||
Allowance for accounts receivable losses | (22,215 | ) | (34,404 | ) | ||||
Accounts receivable | Ps | 562,598 | Ps | 716,106 | ||||
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Table of Contents
2005 | 2006 | 2007 | ||||||||||
Balance at beginning of year | Ps | 14,840 | Ps | 30,984 | Ps | 22,215 | ||||||
Balance at beginning of period (Banagrícola’s subsidiaries)(3) | — | — | 2,787 | |||||||||
Provision for uncollectible amounts | 25,121 | 17,621 | 28,536 | |||||||||
Charge-offs | (7,851 | ) | (5,573 | ) | (7,052 | ) | ||||||
Effect of exchange rate | (163 | ) | 557 | (459 | ) | |||||||
Reversal of provision and recoveries | (963 | ) | (21,374 | ) | (11,623 | ) | ||||||
Balance at end of year | Ps | 30,984 | Ps | 22,215 | Ps | 34,404 | ||||||
(1) | Includes sales of Lab Investment & Logistic and Abocol and affiliate. | |
(2) | Includes all accounts receivable except those originated for interest loans. | |
(3) | Includes allowance for accounts receivable losses of Banco Agrícola, Aseguradora Suiza Salvadoreña and Asesuisa Vida. |
2006 | 2007 | |||||||
Premises and equipment | ||||||||
Land | Ps | 78,512 | Ps | 136,369 | ||||
Buildings | 321,055 | 421,666 | ||||||
Warehouses | 7,116 | — | ||||||
Furniture, equipment and fixtures | 212,874 | 261,029 | ||||||
Computer equipment | 441,846 | 543,041 | ||||||
Vehicles | 6,328 | 13,034 | ||||||
Construction in progress | 18,221 | 122,606 | ||||||
Machinery and equipment | 15,478 | 17,293 | ||||||
Equipment in — transit(1) | 245,478 | 157,341 | ||||||
Total | 1,346,908 | 1,672,379 | ||||||
Less accumulated depreciation | (617,947 | ) | (806,567 | ) | ||||
Allowance | (16,239 | ) | (9,994 | ) | ||||
Premises and equipment, net | Ps | 712,722 | Ps | 855,818 | ||||
(1) | Includes goods being imported to be allocated to leasing. |
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2006 | 2007 (1) | |||||||
Operating Leases | ||||||||
Machinery and equipment | Ps | 5,463 | Ps | 5,650 | ||||
Vehicles | 211,240 | 482,440 | ||||||
Furniture, equipment and fixtures | 3,440 | 15,271 | ||||||
Computer equipment | 24,186 | 97,259 | ||||||
Real goods | 1,505 | 1,711 | ||||||
Total | 245,834 | 602,331 | ||||||
Rents | 7,459 | 15,690 | ||||||
Less accumulated depreciation | (84,687 | ) | (126,080 | ) | ||||
Allowance | (1,299 | ) | (3,608 | ) | ||||
Operating Leases, net | Ps | 167,307 | Ps | 488,333 | ||||
(1) | As of December 31, 2007, includes Sutecnología operating leases since the beginning of the year. Sutecnología merged with Leasing Bancolombia, on December 2007. |
2006 | 2007 | |||||||
Prepaid expenses: | ||||||||
Insurance premiums | Ps | 12,417 | Ps | 11,636 | ||||
Interest | 11 | 10 | ||||||
Other | 16,072 | 12,086 | ||||||
Total prepaid expenses | 28,500 | 23,732 | ||||||
Deferred charges: | ||||||||
Studies and projects | 1,887 | 10,058 | ||||||
Computer programs | 8,450 | 25,329 | ||||||
Leasehold improvements | 2,994 | 8,898 | ||||||
Deferred taxes non-banking entities | 714 | 695 | ||||||
Stationery and supplies | 233 | 1,618 | ||||||
Discounts on issuance of long-term debt | — | 12,918 | ||||||
Commissions from derivative products | 744 | 451 | ||||||
Loss on valuation of debt securities | 941 | — | ||||||
Banagrícola acquisition costs | — | 38,033 | ||||||
Customer list | — | 8,082 | ||||||
Commisions | — | 2,700 | ||||||
Other | 1,999 | 5,387 | ||||||
Total deferred charges | Ps | 17,962 | Ps | 114,169 | ||||
Total prepaid expenses and deferred charges | Ps | 46,462 | Ps | 137,901 | ||||
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Table of Contents
2006 | 2007 | |||||||
Other assets: | ||||||||
Value added tax deductible and withholding taxes | Ps | 39,426 | Ps | 14,486 | ||||
Investment in Trust | 16,129 | 10,978 | ||||||
Deposits | 147,423 | 23,842 | ||||||
Assets to place in lease contracts | 445,050 | 502,260 | ||||||
Inventory | 5,543 | 7,906 | ||||||
Consortiums | 9,808 | 8,329 | ||||||
Other | 11, 886 | 12,841 | ||||||
Total other assets | Ps | 675,265 | Ps | 580,642 | ||||
2005 | 2006 | 2007 | ||||||||||
Balance at beginning of year | Ps | 73,607 | Ps | 50,959 | Ps | 40,164 | ||||||
Additions derived from the acquisition of Factoring Bancolombia by Bancolombia | — | 15,019 | — | |||||||||
Additions derived from the acquisition of Banagrícola by Bancolombia Panamá | — | — | 881,434 | |||||||||
Other Additions(1) | — | — | 132,154 | |||||||||
Amortization | (22,648 | ) | (25,814 | ) | (70,411 | ) | ||||||
Effect of change in exchange rate | — | — | (6,246 | ) | ||||||||
Balance at end of year | Ps | 50,959 | Ps | 40,164 | Ps | 977,095 | ||||||
(1) | Corresponds to: a) The balance at beginning of year of the goodwill derived from the acquisition of Inversiones Financieras Banco Agrícola (IFBA) and Banco Agrícola by Banagrícola and the goodwill derived from the acquisition of Banco Agrícola by Inversiones Financieras Banco Agrícola in the total amount of Ps 74,521; b) the additions to the goodwill derived from the acquisition of IFBA and Banco Agrícola by Banagrícola in the amount of Ps 30,052 and the additions to the goodwill derived from the acquisition of Banco Agrícola by IFBA in the amount of Ps 24,436 during the year 2007 and c) the goodwill derived from the acquisition of Sutecnologia by Leasing Bancolombia in the amount of Ps 3,145. |
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Table of Contents
2006 | 2007 | |||||||
Equity securities | Ps | 54,202 | Ps | 58,906 | ||||
Real estate | 131,816 | 166,992 | ||||||
Other assets | 6,986 | 8,218 | ||||||
Total | 193,004 | 234,116 | ||||||
Allowance | (174,393 | ) | (201,822 | ) | ||||
Total foreclosed assets, net | Ps | 18,611 | Ps | 32,294 | ||||
2006 | 2007 | |||||||
Chicó Oriental Número 2 Ltda. | Ps | 14,202 | Ps | 14,202 | ||||
Urbanización Sierras del Chicó Ltda. | 11,703 | 11,703 | ||||||
Procampo trust | 7,044 | 7,044 | ||||||
Enka de Colombia | — | 6,965 | ||||||
Lote2C Chisa trust | 3,511 | 4,480 | ||||||
Pizano S.A. | 3,663 | 3,663 | ||||||
Convertible Securities Pizano S.A. | 3,221 | 3,221 | ||||||
Derechos Fibra Tolima | — | 1,572 | ||||||
Derechos Calima Resort | — | 1,485 | ||||||
Derecho fiduciario ADM-Ceylán | — | 1,209 | ||||||
BIMA trust | — | 675 | ||||||
Líneas Agromar trust | 1,399 | 209 | ||||||
Conconcreto S.A. | 2,622 | — | ||||||
Holguines Cali | 1,485 | — | ||||||
Coltejer | 2,674 | — | ||||||
Other | 2,678 | 2,478 | ||||||
Total | Ps | 54,202 | Ps | 58,906 | ||||
2005 | 2006 | 2007 | ||||||||||
Balance at beginning of year | Ps | 140,865 | Ps | 205,176 | Ps | 174,393 | ||||||
Balance at beginning of year 2007 (Aseguradora Suiza, Banco Agricola) | — | — | 70,612 | |||||||||
Balance at beginning of the year (Factoring Bancolombia, Conavi, Corfinsura and subsidiaries) | 65,814 | 2,370 | — | |||||||||
Provision | 44,665 | 22,037 | 35,298 | |||||||||
Charge-offs | (772 | ) | (978 | ) | (23,866 | ) | ||||||
Reversal of provisions | (45,445 | ) | (54,298 | ) | (52,995 | ) | ||||||
Reclassifications | 52 | 91 | 5,244 | |||||||||
Effect of changes in exchange rates | (3 | ) | (5 | ) | (6,864 | ) | ||||||
Balance at the end of year | Ps | 205,176 | Ps | 174,393 | Ps | 201,822 | ||||||
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Table of Contents
2006 | 2007 | |||||||
Asset revaluations, net | Ps | 348,364 | Ps | 520,788 | ||||
Less: proportional equity revaluations | (179,651 | ) | (167,069 | ) | ||||
Less: minority interests | (28,020 | ) | (34,073 | ) | ||||
Total equity revaluations | Ps | 140,693 | Ps | 319,646 | ||||
2006 | 2007 | |||||||
Foreign banks | ||||||||
Short-term | Ps | 679,105 | Ps | 454,878 | ||||
Long-term | 387,740 | 1,051,733 | ||||||
Total | Ps | 1,066,845 | Ps | 1,506,611 | ||||
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2007 | ||||
2008 | Ps | 1,112,032 | ||
2009 | 16,432 | |||
2010 | 70,408 | |||
2011 | 7,613 | |||
2012 and thereafter | 300,127 | |||
Ps | 1,506,611 | |||
2006 | 2007 | |||||||
Banco de Comercio Exterior de Colombia (“Bancoldex”) | Ps | 732,617 | Ps | 1,190,028 | ||||
Fondo para el Financiamiento del Sector Agropecuario (“Finagro”) | 429,175 | 631,940 | ||||||
Findeter | 753,200 | 1,035,910 | ||||||
Other(1) | 534,589 | 486,757 | ||||||
Total | Ps | 2,449,581 | Ps | 3,344,635 | ||||
(1) | Includes borrowings from comercial banks and other non-financial entities |
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Table of Contents
2007 | Ps | 329 | ||
2008 | 740,971 | |||
2009 | 385,022 | |||
2010 | 839,417 | |||
2011 | 377,231 | |||
2012 | 565,364 | |||
2013 and thereafter | 436,301 | |||
Total | Ps | 3,344,635 | ||
2006 | 2007 | |||||||
Unearned income | Ps | 20,579 | Ps | 33,779 | ||||
Accrued severance Law 50, net of advances | 17,269 | 21,028 | ||||||
Accrued severance pre-Law 50, net of advances to employees of Ps11,360 and Ps10,160 in 2006 and 2007, respectively | 13,553 | 13,669 | ||||||
Accrued payroll and other severance benefits | 43,649 | 48,308 | ||||||
Accrued pension obligations net of deferred cost | 99,085 | 110,669 | ||||||
Negative goodwill | 7,137 | 4,604 | ||||||
Deferred interest on restructured loans | 50,549 | 45,956 | ||||||
Deferred tax liability | 40,683 | 64,183 | ||||||
Advances | 75,104 | 52,200 | ||||||
Insurance reserves | — | 67,229 | ||||||
Deferred profit on sales of assets | 11,039 | 12,787 | ||||||
Deferred paid standby letters | 2,150 | 3,965 | ||||||
Other | 6,900 | 25,056 | ||||||
Total | Ps | 387,697 | Ps | 503,433 | ||||
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Table of Contents
Projected | ||||||||||||
pension | ||||||||||||
liability | Deferred cost | Net | ||||||||||
Balance at December 31, 2004 | Ps | 87,138 | Ps | (785 | ) | Ps | 86,353 | |||||
Balance at beginning of year (Corfinsura) | 356 | — | 356 | |||||||||
Decrease for Abocol sale | (5,292 | ) | 785 | (4,507 | ) | |||||||
Reclassification | (51 | ) | — | (51 | ) | |||||||
Adjustment per actuarial valuation | 16,715 | (16,715 | ) | — | ||||||||
Benefits paid | (10,184 | ) | — | (10,184 | ) | |||||||
Pension expense | — | 16,715 | 16,715 | |||||||||
Balance at December 31, 2005 | Ps | 88,682 | Ps | — | Ps | 88,682 | ||||||
Adjustment per actuarial valuation | 22,156 | (22,156 | ) | — | ||||||||
Benefits paid | (11,753 | ) | — | (11,753 | ) | |||||||
Pension expense | — | 22,156 | 22,156 | |||||||||
Balance at December 31, 2006 | Ps | 99,085 | Ps | — | Ps | 99,085 | ||||||
Adjustment per actuarial valuation | 25,736 | (25,736 | ) | — | ||||||||
Benefits paid | (12,652 | ) | — | (12,652 | ) | |||||||
Settlement due to sale of Almacenar | (1,500 | ) | — | (1,500 | ) | |||||||
Pension Expense | — | 25,736 | 25,736 | |||||||||
Balance at December 31, 2007 | Ps | 110,669 | Ps | — | Ps | 110,669 | ||||||
2005 | 2006 | 2007 | ||||||||||
Discount rate | 19.06 | % | 16.53 | % | 14.05 | % | ||||||
Future pension increases | 12.01 | % | 10.55 | % | 8.83 | % |
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Table of Contents
2008 | 448,636 | |||
2009 | 696,144 | |||
2010 | 321,431 | |||
2011 | 206,770 | |||
2012 | 168,152 | |||
2013 and thereafter | 1,009,597 | |||
Ps | 2,850,730 | |||
Bancolombia S.A. | ||||||||
Peso Denominated | ||||||||
Issue Date | Maturity Date | Rate(1) | ||||||
2000 | 30-Nov-02 | 14.15 | % | |||||
2001 | 20-Dec-10 | 11.90 | % | |||||
2002 | 21-Jun-10 | 9.88 | % | |||||
2004 | 11-Feb-09 | 11.34 | % | |||||
2004 | 11-Feb-09 | 10.10 | % | |||||
2007 | 26-Dec-12 | 11.58 | % |
Foreign Currency Denominated | ||||||||
Issue Date | Maturity Date | Rate | ||||||
2007 | 25-May-17 | 6.99 | % |
(1) | Each of these issuances has a different nominal rate; for this reason the effective rate presented here corresponds to the estimate made with each one of the rate for each issuance in circulation. |
F-65
Table of Contents
Issue | Maturity date | Payment term | Yield | Amount | ||||||||||||
1st | March 26, 2009 | Quarterly | DTF + 1.99 | 139,848 | ||||||||||||
2nd | September 26, 2009 | Quarterly | DTF + 2.2 | 91,000 | ||||||||||||
3rd | September 26, 2012 | Quarterly | DTF + 2.68 | 107,400 | ||||||||||||
3rd | September 26, 2012 | Biannually | DTF + 6.10 | 61,752 | ||||||||||||
Total amount | 400,000 |
Banco Agrícola S.A. | ||||||||
Issue Date | Maturity Date | Rate | ||||||
2002 | 2009 | Up to an annual rate of 4.9% | ||||||
2003 | 2008 | Up to an annual rate of 5.08% | ||||||
2003 | 2010 | Up to an annual rate of 5.36% | ||||||
2004 | 2009 | Up to an annual rate of 5.28% | ||||||
2004 | 2011 | Up to an annual rate of 5.88% | ||||||
2005 | 2010 | Up to an annual rate of 5.97% | ||||||
2006 | 2008 | Up to an annual rate of 6% | ||||||
2006 | 2011 | Up to an annual rate of 5.82% | ||||||
2006 | 2013 | Up to an annual rate of 5.46% | ||||||
2007 | 2009 | Up to an annual rate of 6.25% | ||||||
2007 | 2010 | Up to an annual rate of 6.30% | ||||||
2007 | 2014 | Up to an annual rate of 5.71% |
Leasing Bancolombia S.A. | ||||||||
Issue Date | Maturity Date | Rate | ||||||
2002 | From 60 to 72 months | Up to an annual rate of the DTF or IPC plus 3.00% | ||||||
2003 | From 18 to 60 months | Up to an annual rate of DTF or IPC plus 5.67% | ||||||
2004 | From 36 to 60 months | Up to an annual rate of DTF or IPC plus 4.5% | ||||||
2006 | From 18 to 60 months | Up to an annual rate of DTF or IPC plus 5.05% |
F-66
Table of Contents
Sufinanciamiento S.A. | ||||||||
Issue Date | Maturity Date | Rate | ||||||
11-Mar-04 | 11-Mar-14 | IPC + 2% | ||||||
30-Mar-06 | 30-Mar-16 | IPC + 2% | ||||||
08-Sep-06 | 08-Sep-16 | IPC + 2% | ||||||
05-Oct-06 | 05-Oct-16 | IPC + 2% | ||||||
07-Nov-06 | 07-Nov-16 | IPC + 2% | ||||||
06-Dec-06 | 06-Dec-16 | IPC + 2% | ||||||
21-Dec-06 | 21-Dec-16 | IPC + 2% | ||||||
03-Jul-07 | 03-Jul-17 | IPC + 2% | ||||||
28-Nov-07 | 28-Nov-17 | IPC + 2% |
Renting Colombia S.A. | ||||||||
Issue Date | Maturity Date | Rate | ||||||
28-Jan-03 | 28-Jan-08 | IPC 7.25% E.A. | ||||||
28-Jan-03 | 28-Jan-09 | IPC 6.7% T.A. | ||||||
21-Sep-06 | 21-Sep-09 | DTF 2.80% T.A. | ||||||
21-Sep-06 | 21-Sep-11 | IPC 5.38% E.A. | ||||||
21-Feb-07 | 21-Sep-09 | DTF 2.9% T.A. | ||||||
26-Apr-07 | 21-Sep-10 | DTF 3.09% T.A. |
Fundicom S.A. | ||||||||
Issue Date | Maturity Date | Rate | ||||||
06-Aug-06 | 05-Aug-15 | IPC | ||||||
07-Jun-07 | 06-Jun-14 | DTF |
DTF: | Average weekly rate of Time Deposits (issued by commercial and mortgage banks and commercial finance companies) with a maturity of 90 days. | |
IPC: | Consumer price index |
2006 | 2007 | |||||||
Income tax payable | Ps | 8,077 | Ps | 39,548 | ||||
Fines and sanctions(1) | 86,764 | 92,395 | ||||||
Labor obligations | 12,115 | 24,303 | ||||||
FICAFE contingency(2) | — | 48,772 | ||||||
Other | 13,028 | 13,842 | ||||||
Total | Ps | 119,984 | Ps | 218,860 | ||||
(1) | See Note 26(d). | |
(2) | As a result of Banagriícola’s acquisition, the Bank for the year ended December 31, 2007, has established an allowance available to absorb probable losses inherent in the FICAFE investment, booked through its subsidiary, Banco Agricola S.A. FICAFE investment consists of fiduciary’s certifications, issued by the Found of Enviromental Preservation of Coffee-producing lands established by the Salvadorian government. |
F-67
Table of Contents
2005 | 2006 | 2007 | ||||||||||
Income before income taxes | Ps | 1,224,396 | Ps | 924,409 | Ps | 1,448,806 | ||||||
Adjustments for consolidation purposes, net | 37,032 | 159,103 | 653,554 | |||||||||
Difference between net operating loss carry-forwards and presumed income | 8,149 | 20,879 | 91,947 | |||||||||
Non-deductible provisions, costs and expenses | 130,528 | 177,966 | 236,274 | |||||||||
Non-taxable or exempt income | (364,663 | ) | (636,915 | ) | (1,064,598 | ) | ||||||
Difference between monetary correction for tax purposes and for financial reporting purposes | (38,028 | ) | (62,776 | ) | — | |||||||
Excess of accrued income over valuation income | (130,265 | ) | 6,652 | (23,142 | ) | |||||||
Amortization of excess of presumed income over ordinary income and amortization of net operating loss carry forwards | (94,562 | ) | (102,352 | ) | (65,391 | ) | ||||||
Valuation derivatives effect | (100,495 | ) | (33,075 | ) | (35,380 | ) | ||||||
Special tax deduction for Investment in Real Productive Assets | (28,181 | ) | (21,254 | ) | (177,036 | ) | ||||||
Other | (127,941 | ) | (66,281 | ) | (57,360 | ) | ||||||
Taxable income | Ps | 515,970 | Ps | 366,356 | Ps | 1,007,674 | ||||||
Statutory tax rate | 34.69 | % | 37.21 | % | 33.58 | % | ||||||
Estimated current income tax | Ps | 178,992 | Ps | 136,307 | Ps | 338,364 | ||||||
Deferred income tax expense | 98,523 | 38,573 | 23,519 | |||||||||
Total | Ps | 277,515 | Ps | 174,880 | Ps | 361,883 | ||||||
F-68
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
Fiscal Losses to amortize | ||||||||||||||||||||||||||||
Inversiones | Tempo Rent a | Renting | Todo Uno | |||||||||||||||||||||||||
Renting Perú | CFNS | car | Bancolombia | Colombia | Fundicom | Total | ||||||||||||||||||||||
2011 | Ps | — | Ps | — | Ps | — | Ps | — | Ps | 26 | Ps | 1,962 | Ps | 1,988 | ||||||||||||||
2012 | — | — | — | — | 117 | — | 117 | |||||||||||||||||||||
2013 | — | — | — | — | — | 294 | 294 | |||||||||||||||||||||
With no maximum expiry date | 866 | 20 | 632 | 93,221 | 94,739 | |||||||||||||||||||||||
Ps | 866 | Ps | 20 | Ps | 632 | Ps | 93,221 | Ps | 143 | Ps | 2,256 | Ps | 97,138 | |||||||||||||||
Inversiones | Renting | Inversiones | Banca de | |||||||||||||||||||||||||
CFNS | Bancolombia | Valsimesa | Fundicom | Inversión | Bancolombia | Total | ||||||||||||||||||||||
2008 | Ps | — | Ps | — | Ps | — | Ps | 297 | Ps | — | Ps | 7,300 | Ps | 7,597 | ||||||||||||||
2009 | — | 1,718 | — | 634 | — | 39,507 | 41,860 | |||||||||||||||||||||
2010 | — | 2,181 | — | 593 | — | — | 2,774 | |||||||||||||||||||||
2011 | — | 2,796 | — | 817 | 1,539 | — | 5,152 | |||||||||||||||||||||
2012 | 91 | 1,564 | 5 | — | 4,988 | — | 6,648 | |||||||||||||||||||||
Ps | 91 | Ps | 8,259 | Ps | 5 | Ps | 2,341 | Ps | 6,527 | Ps | 46,807 | Ps | 64,030 | |||||||||||||||
2005 | 2006 | 2007 | ||||||||||
Authorized shares | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||||||||
Issued and outstanding: | ||||||||||||
Common shares with a nominal value of Ps500 (in pesos) | 509,704,584 | 509,704,584 | 509,704,584 | |||||||||
Preference shares with a nominal value of Ps500 (in pesos) | 218,122,421 | 218,122,421 | 278,122,419 |
F-69
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
• | first, an amount to compensate for any losses that affected its capital; | ||
• | second, an amount equivalent to 10% of net profits is segregated to build a legal reserve until that reserve is equal to at least 50% of Bancolombia’s paid-in capital; | ||
• | third, payment of the minimum dividend on the preferred shares; and | ||
• | fourth, allocation of the balance of the net profits is determined by the holders of a majority of the common shares entitled to vote on the recommendation of the board of directors and President and may, subject to further reserves required by the by-laws, be distributed as dividends. |
F-70
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
• | in the event that changes in the Bank’s by-laws may impair the conditions or rights assigned to such shares and when the conversion of such shares into common shares is to be approved; | ||
• | when voting the anticipated dissolution, merger or transformation of the corporation or change of its corporate purpose; | ||
• | when the preferred dividend has not been fully paid during two consecutive annual terms. In this event, holders of such shares shall retain their voting rights until the corresponding accrued dividends have been fully paid to them; | ||
• | when the general shareholders’ meeting orders the payment of dividends with issued shares of the Bank; | ||
• | if at the end of a fiscal period, the Bank does not produce sufficient profits to pay the minimum dividend and the Superintendency of Finance, by its own decision or upon petition of holders of at least ten percent (10%) of preferred shares, determines that benefits were concealed or shareholders were misled with regard to benefits received from the Bank by the Bank’s directors or officers decreasing the profits to be distributed, the Superintendency of Finance may resolve that holders of preferred shares should participate with speaking and voting rights at the general shareholders’ meeting, in the terms established by law; | ||
• | when the register of shares at the Colombian Stock Exchange or at the National Register of Securities is suspended or canceled. In this event, voting rights shall be maintained until the irregularities that resulted in such cancellation or suspension are resolved. |
F-71
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
• | Bancolombia Panamá S.A.: Pursuant to the Acuerdo 6, 1998, as amended, issued by the Superintendency of Banking of Panama, Bancolombia Panamá has to comply with the technical capital ratio required by the Superintendency of Finance of Colombia to its parent company in a consolidated way with financial subsidiaries (as set forth in Decree 1720 of 2001, as amended) in the way describe above; | ||
• | Bancolombia Puerto Rico Internacional, Inc.: According to requirements established by the Oficina del Comisionado de Instituciones Financieras (“OCIF”) in Puerto Rico, total shareholder’s equity of Bancolombia Puerto Rico has to amount at least 8% of total assets excluding demand deposits. | ||
• | Banco Agrícola: According to requirements established by the Banking System of El Salvador, specially in the Article 41 of the Bank’s Law (“Ley de Bancos”), Banco Agrícola’s capital adequacy is required to be not less than 12% of their total weighted assets according to the Bank’s Law; not less than 7% of their total liabilities and contingencies and not less than 100% of their paid-in capital as is explained in Article 36 of the Bank’s Law. | ||
• | In El Salvador, Capital Adequacy is known as Fondo Patrimonial. It is composed by the primary capital and the secondary capital, less: the amount of the resources invested in operations defined in the Article 23 of the Bank’s Law, the amount of the equity investments in entities according with the Article 24 of this Law and the amount of other equity investments in other entities. |
F-72
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
2005 | 2006 | 2007 | ||||||||||
Legal reserve(1) | Ps | 886,159 | Ps | 1,405,733 | Ps | 1,172,799 | ||||||
Additional paid — in capital | 268,005 | 268,005 | 1,165,617 | |||||||||
Other reserves | 611,834 | 639,869 | 1,021,188 | |||||||||
Total | Ps | 1,765,998 | Ps | 2,313,607 | Ps | 3,359,604 | ||||||
(1) | Includes legal reserve and net income from previous years. |
2006 | 2007(2) | 2008 | ||||||||||
Preceding year’s unconsolidated earnings | Ps | 737,389 | Ps | 582,365 | Ps | 804,261 | ||||||
Dividends in cash | 508 pesos per share paid in four quarterly installments of 127 pesos per share from April 2006 on 509,704,584 and 218,122,421 common and preferred shares, respectively. | 532 pesos per share payable in four quarterly installments of 133 pesos per share from April 2007 on 509,704,584 and 218,122,421 common and preferred shares, respectively. Additionally 266 pesos per share payable on 59,999,998 preferred shares issued in June and July 2007 | 568 pesos per share payable in four quarterly installments of 142 pesos per share from April 2008 on 509,704,584 and 278,122,419 common and preferred shares, respectively | |||||||||
Total dividends declared | Ps | 369,736 | Ps | 403,164 | Ps | 447,486 | ||||||
Dividends payable at December 31(1) | Ps | 98,340 | Ps | 111,842 | ||||||||
(1) | The amount of the dividends payable at December 31, is recorded as accounts payable in the Consolidated Balance Sheets. | |
(2) | The amount disclosed as Total Dividends Declared in the table for 2007 differs from those disclosed in the annual report of 2006, because Bancolombia S.A. paid dividends on 59,999,998 preferred shares issued during 2007. |
F-73
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
2006 | 2007 | |||||||
Trust: | ||||||||
Investment trusts | Ps | 34,886,946 | Ps | 39,609,384 | ||||
Commitments: | ||||||||
Unused credit card limits | 2,893,839 | 4,703,942 | ||||||
Civil demands against the Bank | 858,644 | 874,107 | ||||||
Issued and confirmed letters of credit | 1,053,601 | 1,354,921 | ||||||
Uncommitted lines of credit | 751,304 | 865,706 | ||||||
Bank guarantees | 780,280 | 1,258,448 | ||||||
Approved credits not disbursed | 660,558 | 1,467,745 | ||||||
Nation account payable (546 law) | 34,862 | 30,371 | ||||||
Other | 194,684 | 124,195 | ||||||
Total | Ps | 42,114,718 | Ps | 50,288,819 | ||||
2006 | 2007 | |||||||
Memorandum accounts receivable: | ||||||||
Tax value of assets | 29,028,917 | 30,481,070 | ||||||
Assets and securities given in custody | 3,813,482 | 3,411,382 | ||||||
Assets and securities given as a collateral | 2,163,335 | 3,300,348 | ||||||
Trading investments in debt securities | 2,401,899 | 1,692,960 | ||||||
Written-off assets | 1,023,745 | 1,439,114 | ||||||
Quotas of leasing to receive | 4,219,686 | 5,977,221 | ||||||
Investments held to maturity | 1,171,055 | 1,058,280 | ||||||
Adjustments for inflation of assets | 166,941 | 162,724 | ||||||
Accounts to receive yields trading investments in debt titles | 139,763 | 103,286 | ||||||
Investments available for the sale in debt titles | 1,641,970 | 1,379,980 | ||||||
Remittances sent for collection | 24,632 | 26,103 | ||||||
Amortized debt securities investment | 614,528 | 788,610 | ||||||
Other memorandum account receivable | 4,134,808 | 4,304,690 | ||||||
Total | Ps | 50,544,761 | Ps | 54,125,768 | ||||
Memorandum accounts payable: | ||||||||
Assets and securities received as collateral | 20,256,982 | 25,815,805 | ||||||
Qualification commercial loans | 16,230,741 | 23,711,631 | ||||||
Assets and securities received in custody | 6,030,005 | 4,816,267 | ||||||
Tax value of shareholders’ equity | 4,428,133 | 4,673,067 | ||||||
Qualification consumer loans | 3,586,540 | 6,573,200 | ||||||
Adjustment for inflation of equity | 912,418 | 892,909 | ||||||
Qualification small business loans | 92,237 | 131,913 | ||||||
Merchandise in owned warehouses | 85,402 | 65 | ||||||
Merchandise in third-party warehouses | 22,376 | — | ||||||
Underwriting | 25,000 | — | ||||||
Qualification financial leasing | 3,593,083 | 4,749,309 | ||||||
Qualification operating leasing | 168,606 | 491,941 | ||||||
Qualification mortgage loans | 1,336,293 | 2,803,165 | ||||||
Other memorandum account payable | 3,653,410 | 3,135,280 | ||||||
Total | Ps | 60,421,226 | Ps | 77,794,552 | ||||
Total memorandum accounts | Ps | 153,080,705 | Ps | 182,209,139 | ||||
F-74
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
F-75
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
Actual | ||||||||||||||||
Exposure at | ||||||||||||||||
Initial | December 31, | |||||||||||||||
Process | Exposure | 2007 | Allowance | Likelihood | ||||||||||||
Arbitration process Jaime Gilinski and Others against Bancolombia and some of its officers | US$ | 675,000 | Ps | 55,975 | Ps | 27,988 | Probable | |||||||||
Civil Lawsuit from Jaime Gilinski and Others | Ps | 357,000 | Ps | 357,000 | — | Remote | ||||||||||
Almacenar S.A. | 92,048 | 47,000 | 20,000 | Probable | ||||||||||||
Inversiones C.B. S.A. | 12,468 | 40,806 | — | Remote | ||||||||||||
Class action Luis Alberto Duran(1) | 421,080 | 39,084 | 19,542 | Probable | ||||||||||||
Popular action Carlos Julio Aguilar and Other Administrative Tribunal of Valle | 25,232 | 30,210 | — | Remote | ||||||||||||
Rodrigo Garavito and others against Bancolombia Administrative Tribunal of Cundinamarca | 20,000 | 20,000 | — | Remote | ||||||||||||
Editorial Oveja Negra Ltda. and Jose Vicente Katerain Velez | 10,240 | 9,635 | — | Remote | ||||||||||||
Murgueitio and Santander | 8,000 | 8,000 | — | Remote | ||||||||||||
Invico Ltda. Processes. Civil Court 9 of Bogota | 5,000 | 6,601 | — | Remote | ||||||||||||
Costrucc.Rojas Jimenez & CÍA. S. EN C. | 6,277 | 6,277 | Remote | |||||||||||||
Ordinary process Gloria Amparo Zuluaga Arcila | 1,400 | 5,784 | — | Remote | ||||||||||||
Constructodo against Corvivienda. Civil Circuit Court 18 of Bogota | 3,500 | 5,070 | 5,000 | Probable | ||||||||||||
Arbitration process CAJANAL vs Bancolombia | 34,026 | 34,026 | — | Remote | ||||||||||||
Parque Industrial y Comercial of Barranquilla VIA 40 and others | 5,000 | 5,000 | — | Remote |
F-76
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
• | An order for a criminal judge to review the conduct of the Bank’s officers, Messrs. Londoño Saldarriaga and Ochoa Barrera. | ||
• | An order for the house arrest of the aforementioned officers as a preventive measure. |
F-77
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
• | An order for the embargo of all goods and property belonging to the officers involved. | ||
• | An order for an investigation into the conduct of the members of the board of directors of Banco Industrial Colombiano at that time. | ||
• | An order for an investigation into the conduct of the officers of the former Colombian Superintendencies of Banking and Securities (now Superintendency of Finance) and also the Central Bank. |
• | This decision does not affect the stability and solvency of the Bank’s equity and it is improbable that the Bank will incur any financial responsibility. | ||
• | During the acquisition process and the subsequent merger, the Bank and its officers acted with loyalty and transparency, and the transactions with the shareholders were in accordance with international customary standards and practices for this type of transactions, and in accordance with Colombian law. | ||
• | The Bank’s conduct in the acquisition and merger process has been thoroughly analyzed in different judicial and administrative venues, including the Supreme Court, the Council of State, the Contentious Administrative Tribunal of Cundinamarca, the Superior Court, the Superior Tribunal of Medellin and three Arbitration Tribunals, as well as the former Superintendency of Banking and the Superintendency of Securities (now the Superintendency of Finance) and was absolved, mostly of the same charges that the Attorney’s Office recently formulated against the Bank’s officers, in contradiction of all those rulings granted in the Attorney’s Office previous first and second instances. |
F-78
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
F-79
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
F-80
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
F-81
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
F-82
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
1. | A class action filed by the co-owners of the Santa Sofia Housing Estate against the Bogota Mayor’s Office, Fiducolombia S.A. (now Fiduciaria Bancolombia S.A.) and others, claiming that the deterioration to the property was caused by flaws in the terrain, and therefore no building permit should have been issued. In October 2007, a “Mediation hearing” was held, but the plaintiffs did not assist. Currently, the proceedings are at a discovery stage. The management of Fiduciaria Bancolombia S.A. considered that the probability of liability is low. |
F-83
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
2. | Criminal proceedings against Fiduciaria Bancolombia S.A. Legal Representative, based on the action filed by the co-owners of the Santa Sofia Housing Estate, claiming alleged Illegal Squatting and Fraud with regard to the urban development of the real estate project. These proceedings are at a discovery stage and Management based on initial assessment considered the loss low. | ||
3. | Ordinary process of major quantity for tort liability. Plaintiff asserts the joint and several liability of Fiduciaria Bancolombia S.A. and other defendants and, consequently order for the payment of the price of the property, including its improvements. Fiduciaria Bancolombia S.A. answered the complaint and denying all liability. As of December 31, 2007, procedd has not been served to all defendants. |
F-84
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
F-85
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
F-86
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
F-87
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
F-88
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
F-89
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
2005 | 2006 | 2007 | ||||||||||
Public services | Ps | 47,175 | Ps | 53,512 | Ps | 69,857 | ||||||
Advertising | 50,235 | 63,214 | 68,222 | |||||||||
Industry and trade, property, vehicle and other taxes | 121,699 | 129,141 | 147,684 | |||||||||
Communication, postage and freight | 48,254 | 52,403 | 85,042 | |||||||||
Insurance | 27,446 | 29,635 | 23,660 | |||||||||
Security services | 29,339 | 27,292 | 33,655 | |||||||||
Amortization of deferred charges | 48,310 | 40,692 | 61,143 | |||||||||
Rental expenses | 56,375 | 62,182 | 70,949 | |||||||||
Maintenance and repairs | 99,678 | 123,169 | 164,590 | |||||||||
Contributions and membership fees | 14,587 | 17,115 | 31,971 | |||||||||
Temporary services | 17,440 | 31,316 | 18,379 | |||||||||
Travel expenses | 17,799 | 22,840 | 21,999 | |||||||||
Professional fees | 56,004 | 59,506 | 79,599 | |||||||||
Call center services | 20,041 | 26,404 | 26,617 | |||||||||
Information processes outsourcing | 18,218 | 22,731 | 38,383 | |||||||||
Warehouse expenses | 11,398 | 11,777 | — | |||||||||
Software(1) | 34,523 | 24,041 | 32,175 | |||||||||
Alliance SUFI — Almacenes Exito S.A. Expense | 2,903 | 10,950 | 14,333 | |||||||||
Operational expenses related with consortium | 10,514 | 9,138 | 10,198 | |||||||||
Electronic processing data | 12,108 | 4,934 | 3,575 | |||||||||
Public relation | 2,586 | 2,052 | 2,799 | |||||||||
Other(1) | 46,547 | 58,138 | 66,309 | |||||||||
Total | Ps | 793,179 | Ps | 882,182 | Ps | 1,071,139 | ||||||
(1) | The amount disclosed in the table for 2006 differs from those disclosed in the annual report of 2006, because they were reclassificated for comparative purposes with the information of 2007. |
F-90
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
Year ended December 31, | ||||||||||||
2005 | 2006 | 2007 | ||||||||||
(Ps million) | ||||||||||||
Non-operating income (expenses): | ||||||||||||
Other income(1) | Ps | 109,770 | Ps | 194,589 | Ps | 126,796 | ||||||
Minority interest | (6,496 | ) | (6,352 | ) | (13,246 | ) | ||||||
Other expenses(2) | (105,120 | ) | (149,243 | ) | (81,549 | ) | ||||||
Total non-operating income (expenses), net | Ps | (1,846 | ) | Ps | 38,994 | Ps | 32,001 | |||||
(1) | For 2007 includes gains on sale of foreclosed assets, property, plant and equipmet and other assets, securitization residual benefit, insurance contracts sells and rent. For 2006 includes recovery of deferred tax liability for Ps 98,788 registered in 2005 by the Bank. | |
(2) | Other expenses include operational losses and losses from the sale of foreclosed assets, property, plant and equipment and payments for fines, sanctions, lawsuits and indemnities. |
F-91
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
Shareholders with | ||||||||||||||||
participating stock | ||||||||||||||||
lower than 10% of | ||||||||||||||||
Shareholders with | the Bank’s capital | |||||||||||||||
participating stock | and with | |||||||||||||||
equal to or higher | Bank’s officers | operations higher | ||||||||||||||
than 10% of | Non-consolidated | and board of | than 5% technical | |||||||||||||
Bank’s capital | investments | directors(1) | equity | |||||||||||||
Balance Sheet | ||||||||||||||||
Loans | — | 149,889 | 18,802 | 3 | ||||||||||||
Customer’s acceptances and derivatives | — | — | — | 175,095 | ||||||||||||
Accounts receivable | — | 43,147 | 306 | 118,362 | ||||||||||||
Total(1) | Ps | — | Ps | 193,036 | Ps | 19,108 | Ps | 293,460 | ||||||||
Deposits(1) | 157 | 96,664 | 996 | 393,088 | ||||||||||||
Accounts payable | — | 1,768 | — | 198 | ||||||||||||
Bonds | — | 3,310 | — | 18,960 | ||||||||||||
Total | Ps | 157 | Ps | 101,742 | Ps | 996 | Ps | 412,246 | ||||||||
Transactions Income | ||||||||||||||||
Dividends received | — | 6,403 | — | — | ||||||||||||
Interest and fees | — | 19,965 | 1,963 | 64 | ||||||||||||
Other | — | 73 | 133 | — | ||||||||||||
Total | Ps | — | Ps | 26,441 | Ps | 2,096 | Ps | 64 | ||||||||
Expenses | ||||||||||||||||
Interest | 23 | 3,459 | 629 | 29,667 | ||||||||||||
Fees | — | — | 100 | — | ||||||||||||
Other | — | — | 3 | — | ||||||||||||
Total | Ps | 23 | Ps | 3,459 | Ps | 732 | Ps | 29,667 | ||||||||
(1) | The data presented herein for 2005 exclude the transactions with the Qualifying Special Purpose Entity — QSPE of Titularizadora Colombiana S.A. and Deceval S.A. and therefore differ from corresponding data presented in previous years. |
F-92
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
Shareholders with | ||||||||||||||||
participating stock | ||||||||||||||||
lower than 10% of | ||||||||||||||||
Shareholders with | the Bank’s capital | |||||||||||||||
participating stock | and with | |||||||||||||||
equal to or higher | Bank’s officers | operations higher | ||||||||||||||
than 10% of | Non-consolidated | and board of | than 5% technical | |||||||||||||
Bank’s capital | investments | directors(1) | equity | |||||||||||||
Balance Sheet | ||||||||||||||||
Investment securities(1) | — | 737 | — | — | ||||||||||||
Loans | 10,610 | 90,783 | 36,231 | — | ||||||||||||
Customer’s acceptances and derivatives | — | 2 | — | 107,640 | ||||||||||||
Accounts receivable | 89 | 8,632 | 4,108 | — | ||||||||||||
Total | Ps | 10,699 | Ps | 100,154 | Ps | 40,339 | Ps | 107,640 | ||||||||
Deposits(1) | 632 | 107,389 | 8,656 | 287,000 | ||||||||||||
Overnight funds | — | 448 | — | — | ||||||||||||
Accounts payable | 6 | 477 | 2,274 | — | ||||||||||||
Bonds | — | 610 | — | 35,300 | ||||||||||||
Total | Ps | 638 | Ps | 108,924 | Ps | 10,930 | Ps | 322,300 | ||||||||
Transactions Income | ||||||||||||||||
Dividends received | — | 11,206 | — | — | ||||||||||||
Interest and fees | 899 | 29,639 | 3,339 | — | ||||||||||||
Other | — | 2 | — | — | ||||||||||||
Total | Ps | 899 | Ps | 40,847 | Ps | 3,339 | — | |||||||||
Expenses | ||||||||||||||||
Interest | 49 | 6,703 | 6,642 | 22,400 | ||||||||||||
Fees | — | — | 156 | — | ||||||||||||
Other | — | — | 18 | — | ||||||||||||
Total | Ps | 49 | Ps | 6,703 | Ps | 6,816 | Ps | 22,400 | ||||||||
(1) | The data presented herein for 2006 exclude the transactions with the Qualifying Special Purpose Entity — QSPE of Titularizadora Colombiana S.A. and Deceval S.A. and therefore differ from corresponding data presented in previous years. |
F-93
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
Shareholders with | ||||||||||||||||
participating stock | ||||||||||||||||
lower than 10% of | ||||||||||||||||
Shareholders with | the Bank’s capital | |||||||||||||||
participating stock | and with | |||||||||||||||
equal to or higher | Bank’s officers | operations higher | ||||||||||||||
than 10% of | Non-consolidated | and board of | than 5% technical | |||||||||||||
Bank’s capital | investments | directors(1) | equity | |||||||||||||
Balance Sheet | ||||||||||||||||
Investment securities | — | 75,546 | — | — | ||||||||||||
Loans | 390 | 80,231 | 40,393 | — | ||||||||||||
Customer’s acceptances and derivatives | 624 | 23,065 | — | 2,339 | ||||||||||||
Accounts receivable | 19 | 11,678 | 488 | — | ||||||||||||
Total | Ps | 1,033 | Ps | 190,520 | Ps | 40,881 | Ps | 2,339 | ||||||||
Deposits | 789 | 184,127 | 2,164 | 480,095 | ||||||||||||
Bonds | — | 3,000 | — | 74,567 | ||||||||||||
Total | Ps | 789 | Ps | 187,127 | Ps | 2,164 | Ps | 554,662 | ||||||||
Transactions Income | ||||||||||||||||
Dividends received | — | 3,635 | — | — | ||||||||||||
Interest and fees | 53 | 234 | 61 | — | ||||||||||||
Total | Ps | 53 | Ps | 3,869 | Ps | 61 | — | |||||||||
Expenses | ||||||||||||||||
Interest | 345 | 8,881 | 521 | 35,424 | ||||||||||||
Fees | — | — | 439 | — | ||||||||||||
Total | Ps | 345 | Ps | 8,881 | Ps | 960 | Ps | 35,424 | ||||||||
F-94
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
F-95
Table of Contents
Notes to Consolidated Financial Statements
(Stated in millions of pesos and thousands of U.S. dollars)
F-96
Table of Contents
Notes to Consolidated Financial Statements
(31) | Differences Between Colombian Accounting Principles for Banks and U.S. GAAP |
a) | Reconciliation of net income: |
2005 | 2006 | 2007 | ||||||||||
Consolidated net income under Colombian GAAP | Ps | 946,881 | Ps | 749,529 | Ps | 1,086,923 | ||||||
a) Deferred income taxes | 121,025 | (132,003 | ) | (91,280 | ) | |||||||
b) Employee benefit plans | (1,733 | ) | 10,320 | 18,127 | ||||||||
c) Inflation adjustment | (4,423 | ) | (104 | ) | (151 | ) | ||||||
e) Allowance for loans losses, financial leases losses, foreclosed assets and other receivables | (108,886 | ) | 195,549 | (69,809 | ) | |||||||
f) Loan origination fees and costs | 3,277 | 16,798 | 7,241 | |||||||||
g) Interest recognition on non-accrual loans | 3,976 | 2,377 | 6,832 | |||||||||
h) Deferred charges | (1,761 | ) | (3,130 | ) | 7,192 | |||||||
i) Investment securities & derivatives | 27,159 | (36,235 | ) | (9,190 | ) | |||||||
j) Investments in unaffiliated companies | (4,085 | ) | (1,545 | ) | (968 | ) | ||||||
k) Investments in affiliates | 18,277 | 6,598 | 13,321 | |||||||||
l) Lessor accounting | 1,931 | (1,703 | ) | 709 | ||||||||
m) Business combinations | ||||||||||||
m.i) Goodwill | 31,394 | 22,642 | 82,075 | |||||||||
m.ii) Intangible assets | (5,889 | ) | (88,248 | ) | (42,063 | ) | ||||||
m.iii) Fair value adjustments to assets and liabilities acquired | (140,102 | ) | 186,546 | (6,860 | ) | |||||||
n) Securitization non-performing loans | 5,851 | 4,717 | 19,702 | |||||||||
o) Foreign currency translation adjustment | 1,651 | 7,853 | 13,115 | |||||||||
p) Minority interest | (3,422 | ) | 4,793 | (7,965 | ) | |||||||
r) Guarantees | — | (3,571 | ) | (2,549 | ) | |||||||
s) Insurance Contracts | — | — | (4,945 | ) | ||||||||
u) Equity tax | — | — | (3,813 | ) | ||||||||
Consolidated net income under U.S. GAAP | Ps | 891,121 | Ps | 941,183 | Ps | 1,015,644 | ||||||
Net income from continuing operations | Ps | 930,022 | Ps | 986,762 | Ps | 1,072,607 | ||||||
Income (Loss) from operations and disposal of discontinued Operations | Ps | (38,901 | ) | Ps | (45,579 | ) | Ps | (56,963 | ) |
F-97
Table of Contents
Notes to Consolidated Financial Statements
b) | Reconciliation of Stockholders’ Equity: |
2006 | 2007 | |||||||
Consolidated stockholders’ equity under Colombian GAAP | Ps | 3,646,612 | Ps | 5,199,270 | ||||
a) Deferred income taxes | 66,326 | (108,876 | ) | |||||
b) Employee benefit plans | 1,052 | 4,507 | ||||||
c) Inflation adjustment | 38,689 | 38,538 | ||||||
d) Revaluation of assets | (140,693 | ) | (319,646 | ) | ||||
e) Allowance for loans losses, financial leases losses, foreclosed assets and other receivables | 416,142 | 561,442 | ||||||
f) Loan origination fees and costs | 70,531 | 77,772 | ||||||
g) Interest recognition on non-accrual loans | 8,385 | 15,217 | ||||||
h) Deferred charges | (6,166 | ) | (11,291 | ) | ||||
i) Investment securities & derivatives | (142,421 | ) | (163,559 | ) | ||||
j) Investments in unaffiliated companies | (13,298 | ) | (14,266 | ) | ||||
k) Investments in affiliates | 37,175 | 50,496 | ||||||
l) Lessor accounting | 228 | 937 | ||||||
m) Business combinations | ||||||||
m.i) Goodwill | 543,164 | 276,217 | ||||||
m.ii) Intangible assets | 142,100 | 487,691 | ||||||
m.iii) Fair value adjustments to assets and liabilities acquired | (127,176 | ) | (171,222 | ) | ||||
n) Securitization of non performing loans | 10,568 | 30,270 | ||||||
p) Minority interest | 1,371 | (6,595 | ) | |||||
r) Guarantees | (3,571 | ) | (6,120 | ) | ||||
s) Insurance contracts | — | (3,228 | ) | |||||
902,406 | 738,284 | |||||||
Consolidated stockholders’ equity under U.S. GAAP | Ps | 4,549,018 | Ps | 5,937,554 | ||||
F-98
Table of Contents
Notes to Consolidated Financial Statements
c) | Supplemental Consolidated Condensed Financial Statements under U.S.GAAP: |
2006 | 2007 | |||||||
Assets: | ||||||||
Cash and due from banks | Ps | 2,010,120 | Ps | 5,239,778 | ||||
Trading account | 2,926,959 | 2,287,673 | ||||||
Investment securities, net | 2,912,524 | 3,414,275 | ||||||
Loans | 21,358,135 | 33,482,038 | ||||||
Financial lease | 3,553,514 | 4,699,764 | ||||||
Allowance for loans, financial leases losses and other receivables | (507,641 | ) | (1,055,697 | ) | ||||
Premises and equipment, net | 1,637,039 | 1,922,999 | ||||||
Other assets | 1,552,684 | 3,055,923 | ||||||
Total assets | Ps | 35,443,334 | Ps | 53,046,753 | ||||
Liabilities and Stockholders’ Equity: | ||||||||
Deposits | 23,191,301 | 34,356,264 | ||||||
Short term debt | 1,209,776 | 1,195,849 | ||||||
Long term debt | 3,609,352 | 6,506,127 | ||||||
Other liabilities | 2,836,369 | 4,986,221 | ||||||
Minority interest | 47,518 | 64,738 | ||||||
Shareholders’ equity | 4,549,018 | 5,937,554 | ||||||
Total Liabilities and Stockholders’ equity | Ps | 35,443,334 | Ps | 53,046,753 | ||||
F-99
Table of Contents
Notes to Consolidated Financial Statements
2005(1) | 2006(1) | 2007(1) | ||||||||||
Total interest income | Ps | 2,847,397 | Ps | 3,252,850 | Ps | 4,695,568 | ||||||
Total interest expense | (1,032,576 | ) | (1,272,358 | ) | (1,914,902 | ) | ||||||
Net interest income | 1,814,821 | 1,980,492 | 2,780,666 | |||||||||
Provision of loans, leases and other receivables | (230,015 | ) | (1,765 | ) | (678,962 | ) | ||||||
Net interest income after provision of loans, leases and other receivables | 1,584,806 | 1,978,727 | 2,101,704 | |||||||||
Other income | 938,250 | 1,153,643 | 1,610,168 | |||||||||
Other expenses | (1,445,552 | ) | (1,945,737 | ) | (2,189,349 | ) | ||||||
Income before income taxes | 1,077,504 | 1,186,633 | 1,522,523 | |||||||||
Income tax expense | (147,482 | ) | (199,871 | ) | (449,916 | ) | ||||||
Net income from continued operations | 930,022 | 986,762 | 1,072,607 | |||||||||
Discontinued Operations | (38,901 | ) | (45,579 | ) | (56,963 | ) | ||||||
Net income | Ps | 891,121 | Ps | 941,183 | Ps | 1,015,644 | ||||||
(1) | The amounts disclosed in the table for 2005 and 2006 differ from those disclosed in the annual report of 2006; these changes correspond to discontinued operations of Multienlace S.A. |
2005 | 2006 | 2007 | ||||||||||
Net income | Ps | 891,121 | Ps | 941,183 | Ps | 1,015,644 | ||||||
Adjustments to reconcile net income to net cash used by operating activities | (5,215,860 | ) | (9,485,717 | ) | (13,723,203 | ) | ||||||
Net cash used by operating activities | (4,324,739 | ) | (8,544,534 | ) | (12,707,559 | ) | ||||||
Net cash (used) provided in investing activities | (6,133,179 | ) | 5,411,530 | 460,615 | ||||||||
Net cash provided by financing activities | 10,938,580 | 3,413,102 | 15,476,602 | |||||||||
Increase in cash and cash equivalents | Ps | 480,662 | Ps | 280,098 | Ps | 3,229,658 | ||||||
Cash and cash equivalents at beginning of year | 1,249,360 | 1,730,022 | 2,010,120 | |||||||||
Cash and cash equivalents at end of year | Ps | 1,730,022 | Ps | 2,010,120 | Ps | 5,239,778 | ||||||
(1) | This consolidated statement of cash flow includes the following non cash transactions: Ps 80,894 related to restructured loans that were transferred to foreclosed assets and foreign exchange gain of Ps 40,699. |
F-100
Table of Contents
Notes to Consolidated Financial Statements
2005 | 2006 | 2007 | ||||||||||
Balance at beginning of year | Ps | 2,267,286 | Ps | 4,125,996 | Ps | 4,549,018 | ||||||
Shares issued at market value(1) | 1,164,218 | — | 927,612 | |||||||||
Net income | 891,121 | 941,183 | 1,015,644 | |||||||||
Dividends declared | (216,838 | ) | (369,736 | ) | (403,164 | ) | ||||||
Other comprehensive loss | (19,148 | ) | (116,229 | ) | (113,681 | ) | ||||||
Other movements | 39,357 | (32,196 | ) | (37,875 | ) | |||||||
Balance at end of year | Ps | 4,125,996 | Ps | 4,549,018 | Ps | 5,937,554 | ||||||
(1) | The line shares issued for Ps 236,212 in the consolidated statement of stockholder’s equity under Colombian GAAP for the year 2005, reflects the par value of shares; the line shares issued for Ps 1,164,218 in this table reflects the fair market value of shares issued under U.S. GAAP. In 2007 Bancolombia S.A. issued a total of 59,999,998 preferred shares. |
2005 | 2006 | 2007 | ||||||||||
Net Income | Ps | 891,121 | Ps | 941,183 | Ps | 1,015,644 | ||||||
Other comprehensive income, net of tax: | ||||||||||||
Unrealized gain or (loss) on securities available for sale | 2,106 | (146,925 | ) | (34,731 | ) | |||||||
Pension liability | (19,603 | ) | (2,217 | ) | (10,130 | ) | ||||||
Foreign currency translation adjustments | (1,651 | ) | (7,853 | ) | (68,820 | ) | ||||||
Other comprehensive (loss) or gain | (19,148 | ) | (156,995 | ) | (113,681 | ) | ||||||
Comprehensive income | Ps | 871,973 | Ps | 784,188 | Ps | 901,963 | ||||||
Before-Tax | (Tax Expense) | Net-of-tax | ||||||||||
Amount | or Benefit | Amount | ||||||||||
Unrealized gain or (loss) on securities available for sale | Ps | 6,816 | Ps | (4,710 | ) | Ps | 2,106 | |||||
Additional minimum liability (net actuarial loss) | (32,876 | ) | 13,273 | (19,603 | ) | |||||||
Foreign currency translation adjustment | (1,651 | ) | — | (1,651 | ) | |||||||
Other comprehensive income (loss) | Ps | (27,711 | ) | Ps | 8,563 | Ps | (19,148 | ) | ||||
Before-Tax | (Tax Expense) | Net-of-tax | ||||||||||
Amount | or Benefit | Amount | ||||||||||
Unrealized gain or (loss) on securities available for sale | Ps | (232,271 | ) | Ps | 85,346 | Ps | (146,925 | ) | ||||
Additional pension liability | (3,487 | ) | 1,270 | (2,217 | ) | |||||||
Foreign currency translation adjustment | (7,853 | ) | — | (7,853 | ) | |||||||
Other comprehensive income (loss) | Ps | (243,611 | ) | Ps | 86,616 | Ps | (156,995 | ) | ||||
F-101
Table of Contents
Notes to Consolidated Financial Statements
Before-Tax | (Tax Expense) | Net-of-tax | ||||||||||
Amount | or Benefit | Amount | ||||||||||
Unrealized gain or (loss) on securities available for sale | Ps | (51,632 | ) | Ps | 16,901 | Ps | (34,731 | ) | ||||
Additional pension liability | (14,672 | ) | 4,542 | (10,130 | ) | |||||||
Foreign currency translation adjustment | (68,820 | ) | — | (68,820 | ) | |||||||
Other comprehensive income (loss) | Ps | (135,124 | ) | Ps | 21,443 | Ps | (113,681 | ) | ||||
Unrealized | ||||||||||||||||
Gains (Losses) | Foreign | Accumulated | ||||||||||||||
on | Pension | Currency | Other | |||||||||||||
Securities, net of | Liability, net of | Translation | Comprehensive | |||||||||||||
taxes | taxes | Adjustment | Income | |||||||||||||
Beginning balance for 2005 | Ps | 66,385 | Ps | (10,319 | ) | Ps | (8,661 | ) | Ps | 47,405 | ||||||
Current-period change | 2,106 | (19,603 | ) | (1,651 | ) | (19,148 | ) | |||||||||
Ending balance for 2005 | 68,491 | (29,922 | ) | (10,312 | ) | 28,257 | ||||||||||
Beginning balance for 2006 | 68,491 | (29,922 | ) | (10,312 | ) | 28,257 | ||||||||||
Current-period change | (146,925 | ) | (2,217 | ) | (7,853 | ) | (156,995 | ) | ||||||||
Effects of adoption FAS 158 | — | 40,766 | — | 40,766 | ||||||||||||
Ending balance for 2006 | Ps | (78,434 | ) | Ps | 8,627 | Ps | (18,165 | ) | Ps | (87,972 | ) | |||||
Beginning balance for 2007 | Ps | (78,434 | ) | Ps | 8,627 | Ps | (18,165 | ) | Ps | (87,972 | ) | |||||
Current-period change | (34,731 | ) | (10,130 | ) | (68,820 | ) | (113,681 | ) | ||||||||
Ending balance for 2007 | Ps | (113,165 | ) | Ps | (1,503 | ) | Ps | (86,985 | ) | Ps | (201,653 | ) | ||||
a) | Deferred income taxes: |
F-102
Table of Contents
Notes to Consolidated Financial Statements
2005 | 2006 | 2007 | ||||||||||
Current income tax expense | Ps | 178,992 | Ps | 136,307 | Ps | 338,364 | ||||||
Deferred income tax (benefit) expense | (22,502 | ) | 71,788 | 114,799 | ||||||||
Total | Ps | 156,490 | Ps | 208,095 | Ps | 453,163 |
2005 | 2006 | 2007 | ||||||||||
Continuing operation income tax | Ps | 147,482 | Ps | 199,871 | Ps | 449,916 | ||||||
Discontinued operation income tax | 9,008 | 8,224 | 3,247 | |||||||||
Income tax | Ps | 156,490 | Ps | 208,095 | Ps | 453,163 | ||||||
2006 | 2007 | |||||||
Deferred tax assets and liabilities | ||||||||
Deferred tax assets: | ||||||||
Allowance for loan losses | Ps | — | Ps | 28,527 | ||||
Fixed assets | 169,674 | 135,192 | ||||||
Tax losses and excess of presumed income over ordinary income | 11,129 | 23,465 | ||||||
Allowance for foreclosed assets | — | 17,965 | ||||||
Accrued expenses | 34,760 | 33,779 | ||||||
Excess of accrued income over valuation income | 4,418 | 3,625 | ||||||
Business combination | — | 21,971 | ||||||
Unrealized gain on investment securities | 43,504 | 61,909 | ||||||
Deferred interest on restructured loans | 17,741 | 20,421 | ||||||
Other | 15,836 | 20,731 | ||||||
Total gross deferred tax assets | 297,062 | 367,585 | ||||||
Less valuation allowance | (19,708 | ) | (9,491 | ) | ||||
Net deferred tax asset | Ps | 277,354 | Ps | 358,094 | ||||
Deferred tax liabilities: | ||||||||
Accrual of employee benefits | Ps | 381 | Ps | 1,577 | ||||
Fixed assets | — | 31,978 | ||||||
Allowance for loan losses | 32,875 | 130,448 | ||||||
Allowance for foreclosed assets | 4,829 | 26,308 | ||||||
Loan origination fees and cost | 22,829 | 24,795 | ||||||
Forward, future and swaps effect | 37,537 | 49,994 | ||||||
Inflation adjustments | 78,051 | 76,090 | ||||||
Business Combination | 16,926 | 24,842 | ||||||
Intangible assets | 50,762 | 134,233 | ||||||
Excess of accrued income over valuation income | — | 11,790 | ||||||
Securitization | 3,804 | 10,595 | ||||||
Other | 3,003 | 7,813 | ||||||
Total deferred liabilities | 250,997 | 530,463 | ||||||
Net deferred asset (liability) | Ps | 26,357 | Ps | (172,369 | ) | |||
F-103
Table of Contents
Notes to Consolidated Financial Statements
2005 | 2006 | 2007 | ||||||||||
Income before tax U.S. GAAP(1) | Ps | 1,047,611 | Ps | 1,149,278 | Ps | 1,468,807 | ||||||
Income tax as per statutory rate | 387,616 | 425,233 | 528,771 | |||||||||
Effect of foreign profit taxed other rate | — | — | (43,757 | ) | ||||||||
Non-deductible items / provisions | 48,225 | 77,002 | 72,868 | |||||||||
Non-taxable income | (136,513 | ) | (197,587 | ) | (139,882 | ) | ||||||
Others | (141,948 | ) | (111,820 | ) | 45,380 | |||||||
Increase (decrease) in tax valuation allowance | (890 | ) | 15,267 | (10,217 | ) | |||||||
Income tax | Ps | 156,490 | Ps | 208,095 | Ps | 453,163 | ||||||
(1) | It represents continuing operation and discontinued operation. |
F-104
Table of Contents
Notes to Consolidated Financial Statements
Company | Open tax year | |||
Bancolombia | 2006 – 2007 | |||
Fiduciaria Bancolombia | 2006 – 2007 | |||
Leasing Bancolombia | 2006 – 2007 | |||
Sufinanciamiento | 2006 – 2007 | |||
Valores Bancolombia | 2006 – 2007 | |||
Renting Colombia | 2005 – 2007 | |||
Factoring Bancolombia | 2005 – 2007 | |||
Banca de Inversión | 2007 | |||
Banco Agrícola | 2004 – 2007 |
F-105
Table of Contents
Notes to Consolidated Financial Statements
b) | Employee benefit plans: |
F-106
Table of Contents
Notes to Consolidated Financial Statements
2005 | 2006 | 2007 | ||||||||||
Components of net periodic benefit cost | ||||||||||||
Service cost | Ps | 1,604 | Ps | 4,277 | Ps | 3,447 | ||||||
Interest cost | 27,504 | 18,477 | 16,950 | |||||||||
Amortization of prior service cost | 143 | 135 | 131 | |||||||||
Amortization of net transition obligation (Assets) | 1,048 | 1,017 | 978 | |||||||||
Amortization of net (gain) or loss | 562 | (401 | ) | (3,470 | ) | |||||||
Adjustment to be recognized | ||||||||||||
Net periodic pension cost under U.S. GAAP | 30,861 | 23,505 | 18,036 | |||||||||
Net periodic pension cost under Colombian GAAP | 29,128 | 33,825 | 36,163 | |||||||||
Difference to be recognized under U.S. GAAP | Ps | (1,733 | ) | Ps | 10,320 | Ps | 18,127 | |||||
2006 | 2007 | |||||||
Change in project benefit obligation | ||||||||
Unfunded benefit obligation at beginning of year | Ps | 133,498 | Ps | 111,587 | ||||
Service cost | 4,277 | 3,447 | ||||||
Interest cost | 18,477 | 16,950 | ||||||
Actuarial (gain)/loss | (21,552 | ) | (655 | ) | ||||
Effect of settlements(1) | — | (1,741 | ) | |||||
Cost of plan amendment(2) | — | 13,056 | ||||||
Benefits paid | (23,113 | ) | (22,812 | ) | ||||
Unfunded benefit obligation at end of year | Ps | 111,587 | Ps | 119,832 | ||||
Accrued benefit cost under Colombian GAAP | (112,639 | ) | (124,339 | ) | ||||
Difference to be recognized under U.S. GAAP Stockholders’ equity | Ps | 1,052 | Ps | 4,507 | ||||
(1) | The effect of settlement is related to the sale of Almacenar S.A. | |
(2) | Due to the retroactive effect of sentence 862/2006, Bancolombia was required to recognize pension benefit increases ranging from about 1% to more than 400% to approximately 123 retirees and beneficiaries. The increase in the Project Benefit Obligation as of 12/31/2007 due to this plan amendment is treated as prior service cost. |
F-107
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Notes to Consolidated Financial Statements
2006 | 2007 | |||||||
Net Amount Recognized in the Consolidated Balance Sheet at December 31. | ||||||||
Statement of Financial Position | ||||||||
Noncurrent Assets | Ps | (4,208 | ) | Ps | (6,194 | ) | ||
Current Liabilities | 11,987 | 13,441 | ||||||
Noncurrent Liabilities | 103,808 | 112,585 | ||||||
Amount Recognized in Financial Position | Ps | 111,587 | Ps | 119,832 | ||||
Accumulated Other Comprehensive Income | ||||||||
Net Actuarial Gain (Loss) | Ps | 16,151 | Ps | 12,452 | ||||
Net Prior Service (Cost)/Credit | (424 | ) | (13,350 | ) | ||||
Net Transition (Obligation) Asset | (3,368 | ) | (1,415 | ) | ||||
Total at December 31. | 12,359 | (2,313 | ) | |||||
Deferred income tax | (3,732 | ) | 810 | |||||
Accumulated other comprehensive Income (Loss) | Ps | 8,627 | Ps | (1,503 | ) | |||
2007 | ||||
Increase or (decrease) in Accumulated other comprehensive Income | ||||
Recognized during year — Transition (Obligation)/Asset | Ps | 979 | ||
Recognized during year — Prior Service (Cost)/Credit | 131 | |||
Recognized during year — Net Actuarial (Losses)/Gains | (3,381 | ) | ||
Occurring during year — Prior service cost | (13,056 | ) | ||
Occurring during year — Net Actuarial Losses/(Gains) | 655 | |||
Accumulated other comprehensive Income in current year | Ps | (14,672 | ) | |
Net transition obligation/(asset) | Ps | 789 | ||
Net prior service cost | 1,217 | |||
Net loss/(gain) | (3,435 | ) | ||
Total | Ps | (1,429 | ) | |
F-108
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Notes to Consolidated Financial Statements
2005 | 2006 | 2007 | ||||||||||
Discount rate | 8.68 | % | 8.68 | % | 9.25 | % | ||||||
Rate of compensation increases | 6.33 | % | 6.07 | % | 6.00 | % | ||||||
Rate of pension increases | 4.50 | % | 4.50 | % | 5.00 | % |
Pension | Other | |||||||
Benefits | Benefits | |||||||
2008 | 14,048 | 12,732 | ||||||
2009 | 12,727 | 7,948 | ||||||
2010 | 12,742 | 7,520 | ||||||
2011 | 12,346 | 10,592 | ||||||
2012 | 12,268 | 13,487 | ||||||
Years 2013 — 2017 | 62,134 | 79,411 |
c) | Inflation adjustment |
d) | Revaluation of assets |
F-109
Table of Contents
Notes to Consolidated Financial Statements
e) | Allowance for loan losses, financial leases, foreclosed assets and other receivables |
F-110
Table of Contents
Notes to Consolidated Financial Statements
2006 | 2007 | |||||||
Allowance for loans, financial lease losses and foreclosed assets under Colombian GAAP | ||||||||
Allowance for loans and financial lease losses | Ps | 834,183 | Ps | 1,457,151 | ||||
Allowance for accrued interest and other receivables | 33,859 | 67,707 | ||||||
Allowance for foreclosed assets | 174,393 | 201,822 | ||||||
Ps | 1,042,435 | Ps | 1,726,680 | |||||
Allowance for loan losses under U.S. GAAP | ||||||||
Allowance for loans, financial lease, accrued interest losses and other related receivables | 507,641 | 1,055,697 | ||||||
Allowance for foreclosed assets | 118,652 | 109,541 | ||||||
Ps | 626,293 | Ps | 1,165,238 | |||||
Difference to be recognized as an adjustment to Colombian GAAP stockholders’ equity | Ps | 416,142 | Ps | 561,442 | ||||
2005 | 2006 | 2007 | ||||||||||
Difference recognized in net income under U.S.GAAP | ||||||||||||
Allowance for loans, financial lease losses and other receivables | Ps | (106,440 | ) | Ps | 193,596 | Ps | (45,780 | ) | ||||
Allowance for foreclosed assets | (2,446 | ) | 1,953 | (24,029 | ) | |||||||
Ps | (108,886 | ) | Ps | 195,549 | Ps | (69,809 | ) | |||||
2005 | 2006 | 2007 | ||||||||||
Provision at the beginning of the period | Ps | 407,852 | Ps | 581,645 | Ps | 507,641 | ||||||
Currency Translation and other adjustments | (4,130 | ) | (685 | ) | (29,129 | ) | ||||||
Charge-offs | (104,543 | ) | (145,829 | ) | (191,779 | ) | ||||||
Recoveries of charged-off loans | 52,451 | 70,745 | 89,997 | |||||||||
Charged to profit and loss account | 230,015 | 1,765 | 678,967 | |||||||||
Provision at the end of the period | Ps | 581,645 | Ps | 507,641 | Ps | 1,055,697 | ||||||
Gross Loans and financial leases | 18,626,252 | 24,645,574 | 37,702,624 | |||||||||
Closing customers provisions as a percentage of gross loans | 3.12 | % | 2.06 | % | 2.80 | % | ||||||
Customers charges against profits as percentage of gross loans | 1.23 | % | 0.01 | % | 1.79 | % |
F-111
Table of Contents
Notes to Consolidated Financial Statements
f) | Loan origination fees and costs |
F-112
Table of Contents
Notes to Consolidated Financial Statements
g) | Interest recognition — non-accrual loans |
h) | Deferred charges |
i) | Investment securities and Derivatives |
F-113
Table of Contents
Notes to Consolidated Financial Statements
• | Debt and equity securities that are bought and held principally for the purpose of selling them in the short term are classified as “trading” securities and are reported at fair value, with unrealized gains and losses included in earnings. |
• | Debt securities that the Bank has the positive intent and ability to hold to maturity are classified as “held to maturity” securities and are reported at amortized cost. |
• | Debt and equity securities not classified as either “held to maturity” or “trading” securities are classified as “available for sale” securities and are reported at fair value, with unrealized gains and losses excluded from earnings and reported net of taxes, as a separate component of stockholders’ equity. Any loss in value of an investment considered other than temporary is recognized in earnings. |
Gross | Gross | |||||||||||||||
unrealized | unrealized | Cost | ||||||||||||||
Fair value | gains | losses | basis | |||||||||||||
Available for sale — Debt securities | ||||||||||||||||
December 31, 2006 | ||||||||||||||||
Securities issued or secured by Colombian government | Ps | 1,889,064 | Ps | 13,449 | Ps | 136,532 | Ps | 2,012,147 | ||||||||
Securities issued or secured by government entities | 10,388 | 42 | 81 | 10,427 | ||||||||||||
Securities issued or secured by financial entities | 835,210 | 5,218 | 8,165 | 838,157 | ||||||||||||
Other investments | 188,116 | 4,401 | 2,129 | 185,844 | ||||||||||||
Ps | 2,922,778 | Ps | 23,110 | Ps | 146,907 | Ps | 3,046,575 | |||||||||
F-114
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Notes to Consolidated Financial Statements
Gross | Gross | |||||||||||||||
unrealized | unrealized | Cost | ||||||||||||||
Fair value | gains | losses | basis | |||||||||||||
Available for sale — Debt securities | ||||||||||||||||
December 31, 2007 | ||||||||||||||||
Securities issued or secured by Colombian government | Ps | 1,035,891 | Ps | 2,216 | Ps | 158,816 | Ps | 1,192,491 | ||||||||
Securities issued by the Central Bank | 586,284 | 59 | 155 | 586,380 | ||||||||||||
Securities issued or secured by government entities | 232,841 | 389 | 5,444 | 237,895 | ||||||||||||
Securities issued or secured by financial entities | 1,176,411 | 2,991 | 18,633 | 1,192,055 | ||||||||||||
Securities issued by foreign governments | 444,405 | 3,200 | 1,593 | 442,798 | ||||||||||||
Other investments | 56,947 | 173 | 440 | 57,213 | ||||||||||||
Ps | 3,532,779 | Ps | 9,028 | Ps | 185,081 | Ps | 3,708,832 | |||||||||
Gross | Gross | |||||||||||||||
unrealized | unrealized | Cost | ||||||||||||||
Fair value | gains | losses | basis | |||||||||||||
Available for sale — Equity securities | ||||||||||||||||
December 31, 2006 | ||||||||||||||||
Inmobiliaria Cadenalco | Ps | 3,929 | Ps | 1,438 | Ps | — | Ps | 2,491 | ||||||||
Ps | 3,929 | Ps | 1,438 | Ps | — | Ps | 2,491 | |||||||||
Gross | Gross | |||||||||||||||
unrealized | unrealized | Cost | ||||||||||||||
Fair value | gains | losses | basis | |||||||||||||
Available for sale — Equity securities | ||||||||||||||||
December 31, 2007 | ||||||||||||||||
Inmobiliaria Cadenalco | 4,377 | 1,886 | — | 2,491 | ||||||||||||
Bolsa de Valores de Colombia | 4,877 | 174 | — | 4,703 | ||||||||||||
9,254 | 2,060 | — | 7,194 | |||||||||||||
Available for sale | ||||||||
Amortized | Fair | |||||||
cost | value | |||||||
Due in one year or less | Ps | 1,116,331 | Ps | 1,115,234 | ||||
Due from one year to five years | 939,174 | 892,625 | ||||||
Due from five years to ten years | 1,234,600 | 1,109,362 | ||||||
Due more than ten years | 418,727 | 415,558 | ||||||
Total | Ps | 3,708,832 | Ps | 3,532,779 | ||||
F-115
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Notes to Consolidated Financial Statements
Gross | ||||||||||||
unrealized | Cost | |||||||||||
Fair value | losses | basis | ||||||||||
Available for Sale | ||||||||||||
December 31, 2007 | ||||||||||||
Securities issued or secured by Colombian government | Ps | 18,576 | Ps | 104 | Ps | 18,681 | ||||||
Securities issued or secured by the Central Bank | 531,233 | 149 | 531,382 | |||||||||
Securities issued or secured by government entities | 20,107 | 450 | 20,557 | |||||||||
Securities issued or secured by other financial entities | 382,368 | 1,232 | 383,600 | |||||||||
Securities issued by foreign governments | 162,839 | 295 | 163,134 | |||||||||
Total | Ps | 1,115,123 | Ps | 2,230 | Ps | 1,117,354 | ||||||
F-116
Table of Contents
Notes to Consolidated Financial Statements
Gross | ||||||||||||
unrealized | Cost | |||||||||||
Fair value | losses | basis | ||||||||||
Available for Sale | ||||||||||||
December 31, 2007 | ||||||||||||
Securities issued or secured by Colombian government | Ps | 997,515 | Ps | 158,712 | Ps | 1,156,226 | ||||||
Securities issued or secured by the Central Bank | 20,003 | 6 | 20,010 | |||||||||
Securities issued or secured by government entities | 27,862 | 4,994 | 32,856 | |||||||||
Securities issued or secured by other financial entities | 455,927 | 17,401 | 473,328 | |||||||||
Securities issued by foreign governments | 20,466 | 1,298 | 21,764 | |||||||||
Other investments | 33,362 | 440 | 33,802 | |||||||||
Total | Ps | 1,555,135 | Ps | 182,851 | Ps | 1,737,986 | ||||||
(a) | the length of time and the extent to which the market value of the security has been less than cost; |
(b) | the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer (such as changes in technology that may impair the earnings potential of the investment, or the discontinuance of a segment of a business that may affect the future earnings potential); or |
(c) | the intent and ability of the Bank to retain its investment in the issuer for a period of time that allows for any anticipated recovery in market value. |
F-117
Table of Contents
Notes to Consolidated Financial Statements
j) | Investment in unaffiliated companies. High and Medium Volume quotation investment securities classified as “Available for sale” under Colombian GAAP |
F-118
Table of Contents
Notes to Consolidated Financial Statements
k) | Investments in affiliates. Investments in low, minimum exchange or unquoted equity securities classified as “Available for sale” for purposes of Colombian GAAP |
l) | Lessor accounting |
2006 | 2007 | |||||||
Total minimum lease payments to be received | Ps | 4,232,550 | Ps | 6,057,324 | ||||
Less: Allowance for uncollectibles | (49,440 | ) | (95,047 | ) | ||||
Net minimum lease payments receivable | 4,183,110 | 5,962,277 | ||||||
Estimated residual values of leased property | 238,054 | 369,183 | ||||||
Less: Unearned income | (985,289 | ) | (1,671,907 | ) | ||||
Net investment in direct financial leases | Ps | 3,435, 875 | Ps | 4,659,553 | ||||
F-119
Table of Contents
Notes to Consolidated Financial Statements
Year Ended December 31, | Financial leases | Operating Leases | ||||||
2008 | Ps | 312,678 | Ps | 142,999 | ||||
2009 | 748,158 | 120,573 | ||||||
2010 | 1,205,664 | 101,379 | ||||||
2011 | 992,560 | 77,512 | ||||||
2012 | 1,346,859 | 37,373 | ||||||
Later years, through 2013 | 1,451,405 | 2,020 | ||||||
Total minimum future lease payments to be received | Ps | 6,057,324 | Ps | 481,856 | ||||
m) | Business combinations |
F-120
Table of Contents
Notes to Consolidated Financial Statements
Fair value of assets acquired and liabilities | ||||
assumed under U.S. GAAP from Banagrícola | ||||
during 2007 | ||||
Total Purchase Price | Ps | 1,745,393 | ||
Assets acquired | 7,017,890 | |||
Premises and equipment, net | 188,500 | |||
Liabilities assumed | 6,457,732 | |||
Net Assets Acquired | Ps | 748,658 | ||
Excess of cost over the fair value of acquired net assets | 996,735 | |||
Intangible Assets | 365,849 | |||
Goodwill | Ps | 630,886 | ||
Fair value of assets acquired and liabilities | ||||
assumed under U.S. GAAP from Banagrícola | ||||
de El Salvador Inc. as of Dec 31, 2007 | ||||
Total Purchase Price | Ps | 11,401 | ||
Assets acquired | 5,333 | |||
Premises and equipment, net | 3,218 | |||
Liabilities assumed | 2,449 | |||
Net Assets Acquired | Ps | 6,102 | ||
Excess of cost over the fair value of acquired net assets | 5,299 | |||
Intangible Asset | — | |||
Goodwill | Ps | 5,299 | ||
F-121
Table of Contents
Notes to Consolidated Financial Statements
2006 | ||||
U.S. GAAP Net income | Ps | 1,114,121 | ||
Revenues | 2,918,628 | |||
Earnings per share | Ps | 2,186 |
2007 | ||||
U.S. GAAP Net income | Ps | 1,147,510 | ||
Revenues | 3,822,759 | |||
Earnings per share | Ps | 2,251 |
F-122
Table of Contents
Notes to Consolidated Financial Statements
Fair value of assets acquired and liabilities | ||||
assumed under U.S. GAAP from Comercia | ||||
as of April 30, 2006 | ||||
Total Purchase Price, Net of Cash | Ps | 37,101 | ||
Assets acquired | 161,407 | |||
Premises and equipment, net | 3,756 | |||
Liabilities assumed | 143,116 | |||
Net Assets Acquired | Ps | 22,047 | ||
Excess of cost over the fair value of acquired net assets | 15,054 | |||
Intangible Asset | 7,267 | |||
Goodwill | Ps | 7,787 | ||
2005 | ||||
U.S. GAAP Net income | 896,691 | |||
Revenues | 3,047,037 | |||
Earnings per share | 1,728.66 |
2006 | ||||
U.S. GAAP Net income | 940,738 | |||
Revenues | 2,921,880 | |||
Earnings per share | 1,617.99 |
F-123
Table of Contents
Notes to Consolidated Financial Statements
F-124
Table of Contents
Notes to Consolidated Financial Statements
Fair value of assets acquired and liabilities | ||||
assumed under U.S. GAAP from Conavi | ||||
as of July 31, 2005 | ||||
Total Purchase Price, Net of Cash Acquired | Ps | 316,864 | ||
Assets acquired | 2,921,925 | |||
Premises and equipment, net | 209,535 | |||
Liabilities assumed | 3,006,974 | |||
Net Assets Acquired | Ps | 124,486 | ||
Excess of cost over the fair value of acquired net assets | 192,378 | |||
Intangible Asset | 122,269 | |||
Goodwill | Ps | 70,109 | ||
Fair value of assets acquired and liabilities | ||||
assumed under U.S. GAAP from Corfinsura | ||||
as of July 31, 2005 | ||||
Total Purchase Price, Net of Cash Acquired | Ps | 816,864 | ||
Assets acquired | 4,969,839 | |||
Premises and equipment, net | 142,872 | |||
Liabilities assumed | 4,739,515 | |||
Net Assets Acquired | Ps | 373,196 | ||
Excess of cost over the fair value of acquired net assets | 443,668 | |||
Intangible Asset | 105,294 | |||
Goodwill | Ps | 338,374 | ||
2004 | ||||
U.S. GAAP Net income | Ps | 787,778 | ||
Revenues | 5,446,198 | |||
Earnings per share | Ps | 1,731.38 |
F-125
Table of Contents
Notes to Consolidated Financial Statements
2005 | ||||
U.S. GAAP Net income | Ps | 996,311 | ||
Revenues | 7,196,028 | |||
Earnings per share | Ps | 2,189.70 |
2005 | 2006 | 2007 | ||||||||||
Goodwill U.S. GAAP | ||||||||||||
Balance at beginning of year | Ps | 161,265 | Ps | 569,748 | Ps | 577,535 | ||||||
Reclassifications | — | — | 132,243 | |||||||||
Additions | 408,483 | 7,787 | 636,186 | |||||||||
Foreign currency adjustment | — | — | 36,195 | |||||||||
Balance at end of year | Ps | 569,748 | Ps | 577,535 | Ps | 1,382,159 | ||||||
Goodwill under Colombian GAAP | 41,994 | 34,371 | 973,699 | |||||||||
Difference to be recognized under U.S. GAAP (1) | Ps | 527,754 | Ps | 543,164 | Ps | 408,460 | ||||||
(1) | For 2007 this adjustment is reflected in the line goodwill of the reconciliation of stockholders equity for Ps 276,217 and as part of the line revaluation of assets for Ps 132,243. |
F-126
Table of Contents
Notes to Consolidated Financial Statements
December | December | December | ||||||||||
31, 2005 | 31, 2006 | 31, 2007 | ||||||||||
Commercial Banking | Ps | 253,034 | Ps | 253,034 | Ps | 303,032 | ||||||
Retail Banking | 151,418 | 159,205 | 629,712 | |||||||||
Small Business Banking | 27,784 | 27,784 | 27,784 | |||||||||
Leasing | 54,238 | 54,238 | 54,238 | |||||||||
Offshore Commercial Banking | 31,534 | 31,534 | 31,534 | |||||||||
Government Banking | 1,199 | 1,199 | 30,629 | |||||||||
Construction Banking | 4,326 | 4,326 | 4,326 | |||||||||
Treasury | — | — | 122,446 | |||||||||
All other segments | 46,215 | 46,215 | 178,458 | |||||||||
Total Goodwill | Ps | 569,748 | Ps | 577,535 | Ps | 1,382,159 | ||||||
F-127
Table of Contents
Notes to Consolidated Financial Statements
• | The present value of the brand is determined based on its potential to generate future cash flow. | ||
• | The royalty stream that the business would hypothetically earn from its brand can be reasonably estimated (it assumes that future royalties can in some way be predicted). | ||
• | Cash flows are discounted in order to arrive to a present value. | ||
• | Capital costs and rates of return can be properly estimated. | ||
• | The royalty stream that the business would hypothetically earn during the final year of the period in question can be considered a perpetuity. |
• | Retail banking | ||
• | Commercial banking | ||
• | Offshore commercial banking. |
F-128
Table of Contents
Notes to Consolidated Financial Statements
2006 | 2007 | |||||||
Intangible Assets | ||||||||
Balance at beginning of year | Ps | 223,080 | Ps | 142,099 | ||||
Additions | 7,267 | 365,849 | ||||||
Amortization | (15,114 | ) | (42,063 | ) | ||||
Impairment | (73,134 | ) | — | |||||
Foreign currency translation adjustment | — | 21,806 | ||||||
Balance at end of year | Ps | 142,099 | Ps | 487,691 | ||||
December 31, 2006 | December 31, 2007 | |||||||||||||||||||||||
Gross carrying | Acummulated | Gross carrying | Acummulated | |||||||||||||||||||||
amount | amortization | Impairment | amount | amortization | Impairment | |||||||||||||||||||
Non-Amortizable intangible assets | Ps | 73,134 | — | Ps | 73,134 | Ps | 30,407 | — | — | |||||||||||||||
Amortizable intangible assets | Ps | 163,258 | Ps | 21,159 | — | Ps | 520,781 | Ps | 63,222 | — | ||||||||||||||
F-129
Table of Contents
Notes to Consolidated Financial Statements
Weight useful life | ||||||||
December 31, 2007 | (months) | |||||||
Brand | Ps | 30,407 | ||||||
Service asset | 6,206 | 169 | ||||||
Asset management | 30,004 | 125 | ||||||
Loan | 77,354 | 201 | ||||||
Deposits | 123,801 | 151 | ||||||
Customer relationship Conavi and Corfinsura | 22,400 | 105 | ||||||
Customer relationship Factoring Bancolombia | 7,267 | 48 | ||||||
Customer relationship Conglomerado Banagrícola | 178,824 | 159 | ||||||
Value of business acquired | 71,944 | 120 | ||||||
Others | 2,981 | 105 | ||||||
TOTAL | Ps | 551,188 | ||||||
F-130
Table of Contents
Notes to Consolidated Financial Statements
n) | Securitization |
o) | Foreign currency translation adjustment |
p) | Minority Interest |
q) | Discontinued Operations |
F-131
Table of Contents
Notes to Consolidated Financial Statements
2005 | 2006 | 2007 | ||||||||||
Profit (losses) from discontinued operations before income taxes | Ps | (29,893 | ) | Ps | (37,355 | ) | Ps | (53,716 | ) | |||
Income taxes (benefit) expense | 9,008 | 8,224 | 3,247 | |||||||||
Profit (losses) from discontinued operations | Ps | (38,901 | ) | Ps | (45,579 | ) | Ps | (56,963 | ) | |||
r) | Guarantees |
Maximum potential amount | ||||||||||||||||||||||||||||||||
Expire within one year | Expire after one year | Total amount outstanding | of future payments | |||||||||||||||||||||||||||||
2006 | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 | 2007 | |||||||||||||||||||||||||
Financial standby letters of credit | Ps | 702,834 | Ps | 1,007,038 | Ps | 350,767 | Ps | 347,883 | Ps | 1,053,601 | Ps | 1,354,921 | Ps | 1,053,601 | Ps | 1,354,921 | ||||||||||||||||
Bank guarantees | 550,137 | 992,467 | 229,628 | 265,981 | 779,765 | 1,258,448 | 779,765 | 1,258,448 | ||||||||||||||||||||||||
Total | Ps | 1,252,971 | Ps | 1,999,505 | Ps | 580,395 | Ps | 613,864 | Ps | 1,833,366 | Ps | 2,613,369 | Ps | 1,833,366 | Ps | 2,613,369 | ||||||||||||||||
F-132
Table of Contents
Notes to Consolidated Financial Statements
s) | Insurance contracts |
t) | Estimated Fair Value of Financial Instruments |
December 31, 2006 | December 31, 2007 | |||||||||||||||
Colombian | Colombian | |||||||||||||||
GAAP | Estimated | GAAP | Estimated | |||||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||||
Financial assets | ||||||||||||||||
Cash and cash equivalents | Ps | 2,006,366 | Ps | 2,006,366 | Ps | 5,228,387 | Ps | 5,228,387 | ||||||||
Investment securities | 5,677,761 | 5,535,494 | 5,774,251 | 5,612,474 | ||||||||||||
Loans and accrued interest receivable on loans, net | 24,066,681 | 24,427,082 | 36,644,033 | 37,111,837 | ||||||||||||
Customers’ acceptances | 64,030 | 64,030 | 55,208 | 55,208 | ||||||||||||
Derivatives | 102,365 | 102,210 | 140,797 | 139,015 |
F-133
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Notes to Consolidated Financial Statements
December 31, 2006 | December 31, 2007 | |||||||||||||||
Colombian | Colombian | |||||||||||||||
GAAP | Estimated | GAAP | Estimated | |||||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||||
Financial liabilities: | ||||||||||||||||
Deposits | Ps | 23,337,874 | Ps | 23,315,577 | Ps | 34,558,995 | Ps | 34,654,832 | ||||||||
Overnight funds | 1,009,098 | 1,009,098 | 2,020,366 | 2,020,366 | ||||||||||||
Bank acceptances outstanding | 64,030 | 64,030 | 55,208 | 55,208 | ||||||||||||
Interbank borrowings | 1,079,741 | 1,079,741 | 1,525,894 | 1,525,894 | ||||||||||||
Borrowings from development and other domestic banks | 2,467,639 | 2,467,639 | 3,371,003 | 3,371,003 | ||||||||||||
Long term debt | 1,313,782 | 1,334,032 | 2,866,462 | 2,832,390 | ||||||||||||
F-134
Table of Contents
Notes to Consolidated Financial Statements
F-135
Table of Contents
Notes to Consolidated Financial Statements
u) | Equity tax |
v) | Earnings per share |
2005 | 2006 | 2007 | ||||||||||
U.S. GAAP consolidated net income | Ps | 891,121 | Ps | 941,183 | Ps | 1,015,644 | ||||||
Less preferred share dividends | 110,806 | 116,041 | 157,974 | |||||||||
Income attributable to common stockholders | 780,315 | 825,142 | 857,670 | |||||||||
Income from continuing operations attributable to common shareholders | 819,216 | 870,721 | 914,633 | |||||||||
Income (loss) from operations and disposal of discontinued operations | (38,901 | ) | (45,579 | ) | (56,963 | ) | ||||||
Income attributable to common shareholders | 780,315 | 825,142 | 857,670 | |||||||||
Weighted average number of common shares outstanding used in basic EPS calculation(in millions) | 455 | 510 | 510 | |||||||||
Basic and Diluted earnings per share (U.S. GAAP): | ||||||||||||
Income from continuing operations | 1,800.47 | 1,708.29 | 1,794.44 | |||||||||
Income (loss) from operations and disposal of discontinued operations | (85.50 | ) | (89.42 | ) | (111.76 | ) | ||||||
Income attributable to common shareholders | Ps | 1,714.97 | Ps | 1,618.87 | Ps | 1,682.68 | ||||||
F-136
Table of Contents
Notes to Consolidated Financial Statements
w) | Segments Disclosure |
F-137
Table of Contents
Notes to Consolidated Financial Statements
Small | Governmental | Offshore | ||||||||||||||||||||||||||||||||||
Retail | Commercial | Business | And Institutional | Commercial | All other | |||||||||||||||||||||||||||||||
Banking | Banking | Banking | Banking | Treasury | Banking | Leasing | Segments | Total | ||||||||||||||||||||||||||||
Revenues from external customers | Ps | 474,916 | Ps | 32,652 | Ps | 50,724 | Ps | 15,092 | — | Ps | 12,618 | Ps | 308,027 | Ps | 233,075 | Ps | 1,127,104 | |||||||||||||||||||
Revenues (expenses) from transactions with other operating segments of the Bank | 76,998 | 145,022 | 161,358 | 27,850 | — | 10,604 | 6,654 | (391,454 | ) | 37,032 | ||||||||||||||||||||||||||
Interest income | 1,059,092 | 379,434 | 375,839 | 82,570 | 828,418 | 178,409 | 67,845 | 131,903 | 3,103,510 | |||||||||||||||||||||||||||
Interest expense | 245,978 | 87,318 | 127,094 | 38,579 | 358,932 | 75,422 | 210,411 | 78,897 | 1,222,631 | |||||||||||||||||||||||||||
Net interest revenue | 813,114 | 292,116 | 248,745 | 43,991 | 469,486 | 102,987 | (142,566 | ) | 53,006 | 1,880,879 | ||||||||||||||||||||||||||
Depreciation and amortization expense(2) | — | — | — | — | — | 706 | 11,871 | 18,076 | 30,653 | |||||||||||||||||||||||||||
Provision for loan losses | 77,229 | 3,497 | 13,338 | 1,913 | 27,560 | 28,538 | 19,459 | 20,588 | 192,122 | |||||||||||||||||||||||||||
Administrative and other expense | 697,565 | 76,472 | 85,086 | 36,397 | 10,895 | 8,952 | 57,950 | 596,431 | 1,569,748 | |||||||||||||||||||||||||||
Income tax expense or benefit(2) | — | — | — | — | — | — | 32,389 | 245,124 | 277,513 | |||||||||||||||||||||||||||
Other income or expense, net | 193 | 5 | 5 | — | — | 12,346 | 6,546 | (10,161 | ) | 8,934 | ||||||||||||||||||||||||||
Segment profit before distribution of income (expense) for treasury funds | 590,427 | 389,826 | 362,408 | 48,623 | 431,031 | 100,359 | 56,992 | (995,753 | ) | 983,913 | ||||||||||||||||||||||||||
Distribution of income (expense) for treasury funds(1) | 102,443 | (84,480 | ) | (87,934 | ) | 17,486 | 73,041 | — | — | (20,556 | ) | — | ||||||||||||||||||||||||
Segment profit | Ps | 692,870 | Ps | 305,346 | Ps | 274,474 | Ps | 66,109 | Ps | 504,072 | Ps | 100,359 | Ps | 56,992 | Ps | (1,016,309 | ) | Ps | 983,913 | |||||||||||||||||
Segments assets | Ps | 7,710,861 | Ps | 3,757,603 | Ps | 3,730,214 | Ps | 825,460 | Ps | 7,375,750 | Ps | 4,166,424 | Ps | 3,452,069 | Ps | 2,503,701 | Ps | 33,522,082 | ||||||||||||||||||
(1) | These costs are calculated based on the funds that segments use or provide. Those do not have an impact in the final result. | |
(2) | It was not practical to quantify these items. |
F-138
Table of Contents
Notes to Consolidated Financial Statements
Small | Governmental | Offshore | ||||||||||||||||||||||||||||||||||
Retail | Commercial | Business | And Institutional | Commercial | All other | |||||||||||||||||||||||||||||||
Banking | Banking | Banking | Banking | Treasury | Banking | Leasing | Segments | Total | ||||||||||||||||||||||||||||
Revenues from external customers | Ps | 428,531 | Ps | 134,992 | Ps | 117,282 | Ps | 36,377 | — | Ps | 130 | Ps | 38,515 | Ps | 222,699 | Ps | 978,526 | |||||||||||||||||||
Revenues (expenses) from transactions with other operating segments of the Bank | 69,727 | 297,645 | 92,006 | 54,498 | — | 12,493 | 12,691 | (379,957 | ) | 159,103 | ||||||||||||||||||||||||||
Interest income | 820,398 | 756,876 | 387,043 | 172,830 | 400,053 | 495,222 | 437,977 | 147,004 | 3,617,403 | |||||||||||||||||||||||||||
Interest expense | 196,432 | 66,929 | 51,395 | 289,709 | 246,058 | 123,286 | 254,752 | 123,645 | 1,352,206 | |||||||||||||||||||||||||||
Net interest revenue | 623,966 | 689,947 | 335,648 | (116,879 | ) | 153,995 | 371,936 | 183,225 | 23,359 | 2,265,197 | ||||||||||||||||||||||||||
Depreciation and amortization expense | 59,151 | 14,848 | 16,898 | 6,699 | 4,867 | 988 | 10,237 | 20,229 | 133,917 | |||||||||||||||||||||||||||
Provision for loan losses | 86,327 | (7,179 | ) | 37,829 | (37,106 | ) | (30,134 | ) | 13,316 | 51,741 | 87,978 | 202,772 | ||||||||||||||||||||||||
Administrative and other expense | 662,166 | 140,453 | 186,052 | 73,754 | 53,590 | 9,099 | 68,689 | 545,693 | 1,739,496 | |||||||||||||||||||||||||||
Income tax expense or benefit | 19,275 | 25,807 | 18,319 | 20,403 | 12,839 | — | 36,475 | 41,760 | 174,878 | |||||||||||||||||||||||||||
Other income or expense, net | (791 | ) | (116,209 | ) | 223 | — | — | (223,056 | ) | 12,138 | 84,564 | (243,131 | ) | |||||||||||||||||||||||
Segment profit before distribution of income (expense) for treasury funds | 294,514 | 832,446 | 286,061 | (89,754 | ) | 112,833 | 138,100 | 79,427 | (744,995 | ) | 908,632 | |||||||||||||||||||||||||
Distribution of income (expense) for treasury funds(1) | 74,518 | (304,177 | ) | (44,607 | ) | 310,701 | (8,089 | ) | — | — | (28,346 | ) | — | |||||||||||||||||||||||
Segment profit | Ps | 369,032 | Ps | 528,269 | Ps | 241,454 | Ps | 220,947 | Ps | 104,744 | Ps | 138,100 | Ps | 79,427 | Ps | (773,341 | ) | Ps | 908,632 | |||||||||||||||||
Segments assets | Ps | 6,782,548 | Ps | 8,852,141 | Ps | 3,137,485 | Ps | 2,228,962 | Ps | 3,090,780 | Ps | 4,216,594 | Ps | 4,528,718 | Ps | 5,418,802 | Ps | 38,256,030 | ||||||||||||||||||
(1) | These costs are calculated based on the funds that segments use or provide. Those do not have an impact in the final result. |
F-139
Table of Contents
Notes to Consolidated Financial Statements
Small | Governmental | Offshore | ||||||||||||||||||||||||||||||||||
Retail | Commercial | Business | And Institutional | Commercial | All other | |||||||||||||||||||||||||||||||
Banking | Banking | Banking | Banking | Treasury | Banking | Leasing | Segments | Total | ||||||||||||||||||||||||||||
Revenues from external customers | Ps | 628,460 | Ps | 135,214 | Ps | 173,465 | Ps | 44,277 | (2,302 | ) | Ps | 11,858 | Ps | 84,086 | Ps | 261,691 | Ps | 1,336,749 | ||||||||||||||||||
Revenues (expenses) from transactions with other operating segments of the Bank | (10,844 | ) | 25,309 | — | — | 10,655 | 148,783 | 1,345 | 317,738 | 492,986 | ||||||||||||||||||||||||||
Interest income | 1,412,878 | 1,200,566 | 606,788 | 235,607 | 578,651 | 299,067 | 624,606 | 303,279 | 5,261,442 | |||||||||||||||||||||||||||
Interest expense | 440,436 | 191,654 | 70,316 | 559,077 | 241,551 | 205,806 | 392,740 | 43,167 | 2,144,747 | |||||||||||||||||||||||||||
Net interest revenue | 972,442 | 1,008,912 | 536,472 | (323,470 | ) | 337,100 | 93,261 | 231,866 | 260,112 | 3,116,695 | ||||||||||||||||||||||||||
Depreciation and amortization expense | 92,489 | 17,001 | 24,147 | 7,843 | 3,059 | 20,819 | 24,369 | 45,452 | 235,179 | |||||||||||||||||||||||||||
Provision for loan losses | 267,022 | 164,440 | 154,554 | 23,326 | (14,634 | ) | 19,271 | 108,538 | 26,111 | 748,628 | ||||||||||||||||||||||||||
Administrative and other expense | 1,021,239 | 187,669 | 248,945 | 79,346 | 32,092 | 10,786 | 77,778 | 441,147 | 2,099,002 | |||||||||||||||||||||||||||
Income tax expense or benefit | 58,979 | 75,439 | 46,587 | 45,744 | 42,381 | — | 35,990 | 56,763 | 361,883 | |||||||||||||||||||||||||||
Other income or expense, net | 43,472 | 14,313 | 138 | — | 21 | 18,067 | 61,258 | (59,098 | ) | 78,171 | ||||||||||||||||||||||||||
Segment profit before distribution of income (expense) for treasury funds | 193,801 | 739,199 | 235,842 | (435,452 | ) | 282,576 | 221,093 | 131,880 | 210,970 | 1,579,909 | ||||||||||||||||||||||||||
Distribution of income (expense) for treasury funds(1) | (12,920 | ) | (416,221 | ) | (76,737 | ) | 617,387 | (40,942 | ) | — | — | (70,567 | ) | — | ||||||||||||||||||||||
Segment profit | Ps | 180,881 | Ps | 322,978 | Ps | 159,105 | Ps | 181,935 | Ps | 241,634 | Ps | 221,093 | Ps | 131,880 | Ps | 140,403 | Ps | 1,579,909 | ||||||||||||||||||
Segments assets | Ps | 12,520,097 | Ps | 13,863,491 | Ps | 5,613,853 | Ps | 2,868,259 | Ps | 2,586,235 | Ps | 6,847,345 | Ps | 5,898,303 | Ps | 8,965,226 | Ps | 59,162,809 | ||||||||||||||||||
(1) | These costs are calculated based on the funds that segments use or provide. Those do not have an impact in the final result. |
F-140
Table of Contents
2005 | 2006 | 2007 | ||||||||||
Revenues | ||||||||||||
Revenues for reportable segments(1) | Ps | 4,267,646 | Ps | 4,755,032 | Ps | 7,091,177 | ||||||
Non-operating income(2) | (20,166 | ) | (372,237 | ) | (194,096 | ) | ||||||
Elimination of intersegment revenues | (37,032 | ) | (159,103 | ) | (492,986 | ) | ||||||
Total revenues for reportable segments(3) | Ps | 4,210,448 | Ps | 4,223,692 | Ps | 6,404,095 | ||||||
Profit or Loss | ||||||||||||
Segment Profit | Ps | 983,913 | Ps | 908,632 | Ps | 1,579,909 | ||||||
Elimination of inter-segment profits | (37,032 | ) | (159,103 | ) | (492,986 | ) | ||||||
Net income | Ps | 946,881 | Ps | 749,529 | Ps | 1,086,923 | ||||||
Assets | ||||||||||||
Segment Assets | Ps | 33,522,082 | Ps | 38,256,030 | Ps | 59,162,809 | ||||||
Elimination of inter-segment assets | (2,718,565 | ) | (3,767,334 | ) | (7,011,160 | ) | ||||||
Consolidated total | Ps | 30,803,517 | Ps | 34,488,696 | Ps | 52,151,649 | ||||||
(1) | Total revenues for reportable segments include Revenues from external customers, revenues and expenses from transaction with other operating segments of the same enterprise and interest income. | |
(2) | Non-operating income represent other income classified as revenues for segment reporting purposes. | |
(3) | Total revenues for reportable segments include interest, fees, other services and other operating income. |
2006 | 2007 | |||||||||||||||
Long | Long | |||||||||||||||
Geographic Information | Revenues | Lived — Assets(1) | Revenues | Lived — Assets(1) | ||||||||||||
Republic of Colombia | Ps | 3,801,365 | Ps | 878,917 | Ps | 5,507,174 | Ps | 1,202,108 | ||||||||
Republic of Panama and Cayman Islands | 512,629 | 12,285 | 515,749 | 10,242 | ||||||||||||
Puerto Rico | 37,171 | 141 | 51,765 | 164 | ||||||||||||
Perú | — | — | 357 | 6,706 | ||||||||||||
El Salvador | — | — | 774,026 | 143,658 | ||||||||||||
USA(1) | 31,630 | 928 | 48,010 | 115 | ||||||||||||
Total | 4,382,795 | 892,271 | 6,897,081 | 1,362,993 | ||||||||||||
Eliminations | (159,103 | ) | (13 | ) | (492,986 | ) | 11 | |||||||||
Total, net | Ps | 4,223,692 | Ps | 892,258 | Ps | 6,404,095 | Ps | 1,363,004 | ||||||||
(1) | Included foreclosed assets, net, and property, plant and equipment, net. |
F-141
Table of Contents
Notes to Consolidated Financial Statements
F-142
Table of Contents
Notes to Consolidated Financial Statements
• | Banca de Inversión Bancolombia S.A. specializes in providing investment banking services to corporate customers in areas such as mergers and acquisitions, project finance, issues of debt and equity securities and syndicated loan transactions. |
• | Construction Banking, this segment provides services to the professional building construction industry. Construction customers are segmented by the number of construction projects they own. |
• | Valores Bancolombia is a subsidiary of the Bank that provides brokerage and asset management services and channels all its professional experience and efforts into providing solutions and proposing differentiated investment alternatives to its customers. | ||
Valores Bancolombia offers its customers investment alternatives both domestically and internationally. | |||
In El Salvador, Bursabac’s brokerage services provide access to securities that include notes issued byBanco Central de Reserva(El Salvador’s Central Bank), government bonds, Euro bonds, repurchase agreements, stocks, and bank and corporate debt securities known asCertificados de Inversion. Bursabac’s brokerage services also include the trading of foreign debt securities and international stocks listed in the Salvadorian Stock Exchange. |
• | The manufacturing segment of the Bank provides a wide range of products to individuals and companies such as: metal parts in gray and ductile iron, both wrought and finished, such as brake systems for passenger automobiles and trucks, accessories for aqueducts and agriculture machinery. |
F-143
Table of Contents
Notes to Consolidated Financial Statements
• | Trust, Pension Fund and Insurance: The Bank offers, through Fiduciaria Bancolombia S.A., five mutual funds and one voluntary retirement fund, all of which are designed to provide customers with the opportunity to diversify their investments. |
Through its branch network, Banco Agrícola S.A. offers various insurance products (life insurance and educational) from Asesuisa a subsidiary of Banagrícola. Banco Agrícola S.A. was the first bank in El Salvador to enter the Bancassurance line of business. |
Asesuisa offers protection through insurance products for individuals and corporations, covering a wide range of risks and exposures. |
AFP Crecer is a pension fund that manages both voluntary and mandatory contributions through individual savings accounts for the elderly, common disability and surviving pensions, as established under the SAP. The SAP and other regulations issued by the Superintendency of Pensions of El Salvador regulate the products and services that AFP Crecer provides. |
x) | Recent U.S. GAAP Pronouncements |
F-144
Table of Contents
Notes to Consolidated Financial Statements
• | The ownership interests in subsidiaries held by parties other than the parent be clearly identified, labeled, and presented in the consolidated statement of financial position within equity, but separate from the parent’s equity. |
• | The amount of consolidated net income attributable to the parent and to the non-controlling interest be clearly identified and presented on the face of the consolidated statement of income. A non-controlling interest, sometimes called a minority interest, is the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent. |
• | Changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary be accounted for consistently. A parent’s ownership interest in a subsidiary changes if the parent purchases additional ownership interests in its subsidiary or if the parent sells some of its ownership interests in its subsidiary. It also changes if the subsidiary reacquires some of its ownership interests or the subsidiary issues additional ownership interests. All of those transactions are economically similar, and this Statement requires that they be accounted for similarly, as equity transactions. |
• | When a subsidiary is deconsolidated, any retained non-controlling equity investment in the former subsidiary be initially measured at fair value. The gain or loss on the deconsolidation of the subsidiary is measured using the fair value of any non-controlling equity investment rather than the carrying amount of that retained investment. |
• | Entities provide sufficient disclosures that clearly identify and distinguish between the interests of the parent and the interests of the non-controlling owners. |
F-145
Table of Contents
Notes to Consolidated Financial Statements
F-146
Table of Contents
BANCOLOMBIA S.A. | |||
By: | /s/ JAIME ALBERTO VELÁSQUEZ BOTERO | ||
Name: | Jaime Alberto Velásquez Botero | ||
Title: | Chief Financial Officer |
Table of Contents
Exhibit | ||
No. | Description | |
1.(2) | English Translation of Corporate by-laws (estatutos sociales) of the registrant, as amended on March 01, 2007. | |
2.(1) | The Deposit Agreement entered into between Bancolombia and The Bank of New York, as amended. | |
4.1(2) | Master Stock Purchase Agreement among Bancolombia (Panama) S.A. and the Majority Shareholders of Banagrícola S.A. and first amendment. | |
4.2(2) | Byssa Stock Purchase Agreement among Bancolombia (Panama) S.A. and the Majority Shareholders Bienes y Servicios S.A. | |
4.3(2) | English Summary of the Stock Sale Agreement among Bancolombia S.A. and Portal de Inversiones S.A. | |
7. | Selected Ratios’ Calculation. | |
8.1 | List of Subsidiaries. | |
11. | English translation of the Ethics Code of the registrant, as amended on June 23, 2008. | |
12.1 | CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated July 8, 2008. | |
12.2 | CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated July 8, 2008. | |
13.1 | CEO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated July 8, 2008. | |
13.2 | CFO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated July 8, 2008. | |
15(a) | English Translation of Corporate Governance Code (Código de Buen Gobierno) of the registrant, as amended on June 23, 2008. |
(1) | Incorporated by reference to the Registration Statement in Form F-6, filed by Bancolombia on January 14, 2008. | |
(2) | Incorporated by reference to the Bank’s Annual Report on Form 20-F for the year ended December 31, 2006 filed on May 10, 2007. |