UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of November, 2008.
Comission File Number 001-32535
Bancolombia S.A.
(Translation of registrant’s name into English)
Calle 50 No. 51-66
Medellín, Colombia
(Address of principal executive offices)
Medellín, Colombia
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F | þ | Form 40-F | o |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(2):o
Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes | o | No þ |
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .
3Q08
CONSOLIDATED FINANCIAL RESULTS
FOR THE QUARTER ENDED SEPTEMBER 30, 2008
FOR THE QUARTER ENDED SEPTEMBER 30, 2008
November 6, 2008.Medellín, Colombia — Today, BANCOLOMBIA S.A. (“BANCOLOMBIA” or the “Bank”) (NYSE: CIB) announced its financial results for the third quarter of fiscal year 2008, ended September 30, 2008.1
CONSOLIDATED BALANCE SHEET | ||||||||||||||||||||
AND INCOME STATEMENT | Quarter | Growth | ||||||||||||||||||
(Ps. million) | 3Q07 | 2Q08 | 3Q08 | 3Q08 / 2Q08 | 3Q08 / 3Q07 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Loans and financial leases, net | 34,188,333 | 37,710,491 | 40,474,342 | 7.33 | % | 18.39 | % | |||||||||||||
Investment securities, net | 5,331,636 | 6,168,070 | 6,947,159 | 12.63 | % | 30.30 | % | |||||||||||||
Other assets | 9,163,991 | 10,432,007 | 10,539,537 | 1.03 | % | 15.01 | % | |||||||||||||
Total assets | 48,683,960 | 54,310,568 | 57,961,038 | 6.72 | % | 19.06 | % | |||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Deposits | 30,641,803 | 34,538,354 | 37,096,051 | 7.41 | % | 21.06 | % | |||||||||||||
Non-interest bearing | 4,647,520 | 4,764,975 | 4,582,805 | -3.82 | % | -1.39 | % | |||||||||||||
Interest bearing | 25,994,283 | 29,773,379 | 32,513,246 | 9.20 | % | 25.08 | % | |||||||||||||
Other liabilities | 13,274,738 | 14,480,464 | 15,099,981 | 4.28 | % | 13.75 | % | |||||||||||||
Total liabilities | 43,916,541 | 49,018,818 | 52,196,032 | 6.48 | % | 18.85 | % | |||||||||||||
Shareholders’ equity | 4,767,419 | 5,291,750 | 5,765,006 | 8.94 | % | 20.93 | % | |||||||||||||
Total liabilities and shareholders’ equity | 48,683,960 | 54,310,568 | 57,961,038 | 6.72 | % | 19.06 | % | |||||||||||||
Interest income | 1,242,684 | 1,494,665 | 1,614,618 | 8.03 | % | 29.93 | % | |||||||||||||
Interest expense | 526,607 | 636,839 | 693,547 | 8.90 | % | 31.70 | % | |||||||||||||
Net interest income | 716,077 | 857,826 | 921,071 | 7.37 | % | 28.63 | % | |||||||||||||
Net provisions | (192,709 | ) | (241,685 | ) | (243,584 | ) | 0.79 | % | 26.40 | % | ||||||||||
Fees and income from service, net | 280,966 | 298,984 | 346,717 | 15.97 | % | 23.40 | % | |||||||||||||
Other operating income | 106,806 | 195,761 | 130,622 | -33.27 | % | 22.30 | % | |||||||||||||
Total operating expense | (531,375 | ) | (609,566 | ) | (637,920 | ) | 4.65 | % | 20.05 | % | ||||||||||
Goodwill amortization | (19,399 | ) | (10,497 | ) | (11,287 | ) | 7.53 | % | -41.82 | % | ||||||||||
Non-operating income, net | 5,374 | 29,883 | (14,229 | ) | -147.62 | % | -364.77 | % | ||||||||||||
Income tax expense | (49,007 | ) | (145,359 | ) | (124,423 | ) | -14.40 | % | 153.89 | % | ||||||||||
Net income | 316,733 | 375,347 | 366,967 | -2.23 | % | 15.86 | % | |||||||||||||
1 | This report corresponds to the consolidated financial statements of BANCOLOMBIA and its affiliates of which it owns, directly or indirectly more than 50% of the voting capital stock. These financial statements have been prepared in accordance with generally accepted accounting principles in Colombia and the regulations of Superintendency of Finance in Colombia, collectively COL GAAP. BANCOLOMBIA maintains accounting records in Colombian pesos, referred to herein as “Ps.” or “COP”. Certain monetary amounts, percentages and other figures included in this report have been subject to rounding adjustments. There have been no changes to the Bank’s principal accounting policies in the quarter ended September 30, 2008. The statements of income for the quarter ended September 30, 2008 are not necessarily indicative of the results for any other future interim period. For more information, please refer to the Bank’s filings with the Securities and Exchange Commission, which are available on the Commission’s website atwww.sec.gov. |
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties; consequently, there are or will be factors, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products by other companies, lack of acceptances of new products or services by our targeted customers, changes in business strategy and various others factors, that could cause actual results to differ materially from those indicated in such statements. We do not intend, and do not assume any obligation, to update these forward-looking statements. Certain monetary amounts, percentages and other figures included in this report have been subject to rounding adjustments.
Any reference to BANCOLOMBIA means the Bank together with its affiliates, unless otherwise specified.
Representative Market Rate: October 1 2008 Ps. 2,184.76 = US$ 1 Average Representative Market Rate September 2008 Ps. 1,859.46 = US$ 1
1
3Q08
1. | SUMMARY: |
BANCOLOMBIA announces that during the quarter ended September 30, 2008 (“3Q08”), it recorded net income of Ps. 367.0 billion, which represents an increase of 15.9% as compared to the Ps. 316.7 billion for the quarter ended September 30, 2007 (“3Q07”). Net income for the first nine months of 2008 totaled Ps. 996.2 billion, representing an increase of 30.3% as compared to the same period of 2007.
As of September 30, 2008, BANCOLOMBIA’s gross loans totaled Ps. 42,289 billion, increasing 19.3% as compared to 3Q07 and 7.5% as compared to the quarter ended June 30, 2008 (“2Q08”). As in previous quarters, loan growth has slowed due in part to a lower level of economic growth and higher interest rates in Colombia.
BANCOLOMBIA’s ratio of past due loans (i.e. loans overdue for more than 30 days) to total loans as of September 30, 2008 remained stable at 3.5%. Charge-offs for 3Q08 totaled Ps. 132.4 billion and the coverage ratio, measured as the ratio of allowances for loan losses (including allowances for accrued interest losses) to past due loans, increased to 124.1% from 120.1% in 2Q08.
As of September 30, 2008, BANCOLOMBIA’s total deposits totaled Ps. 37,096 billion, increasing 21.1% as compared to 3Q07 and 7.4% as compared to 2Q08.
BANCOLOMBIA’s efficiency ratio, measured as the ratio between operating expenses and net operating income, reached 46.4% for 3Q08 compared to 50.3% in 3Q07.
BANCOLOMBIA’s annualized average return on equity for 3Q08 was 26.7%. The Bank’s earnings per share for 3Q08 were Ps. 466 or US$0.85 per ADR.
BANCOLOMBIA’s results in 3Q08 were mainly driven by the following factors (and are compared to the results for the same period in 2007):
• | Net interest income that totaled Ps. 921.1 billion in 3Q08, resulting in an increase of 28.6%. | ||
• | Net fees and income from services that amounted to Ps. 346.7 billion in 3Q08, representing an increase of 23.4%. | ||
• | Total other operating income that amounted to Ps. 130.6 billion in 3Q08, representing an increase of 22.3%. | ||
• | Total net provisions that amounted to Ps. 243.6 billion for 3Q08, representing an increase of 26.4%. | ||
• | Income tax expense totaling Ps 124.4 billion in 3Q08, representing an increase of 153.9%. |
2
3Q08
Quarter | As of | |||||||||||||||||||
KEY FINANCIAL HIGHLIGHTS | 3Q07 | 2Q08 | 3Q08 | Sep-07 | Sep-08 | |||||||||||||||
Net Income (Ps millions) | 316,733 | 375,347 | 366,967 | 764,427 | 996,190 | |||||||||||||||
Basic and Diluted net income per ADS US$ | 0.80 | 0.99 | 0.85 | 1.92 | 2.32 | |||||||||||||||
Basic and Diluted net income per share COP(7) | 402.03 | 476.43 | 465.80 | 970.30 | 1,264.48 | |||||||||||||||
Return on average total assets(1) | 2.70 | % | 2.86 | % | 2.66 | % | 2.24 | % | 2.49 | % | ||||||||||
Return on average shareholders’ equity(2) | 28.81 | % | 29.48 | % | 26.66 | % | 24.35 | % | 25.14 | % | ||||||||||
P/BV ADS (3) | 2.90 | 2.24 | 2.12 | |||||||||||||||||
P/BV Local(4) (5) | 2.71 | 2.12 | 2.14 | |||||||||||||||||
P/E(6) | 10.45 | 7.62 | 8.38 | |||||||||||||||||
ADR price | 34.65 | 31.30 | 28.45 | |||||||||||||||||
Common share price(7) | 16,400 | 14,220 | 15,640 | |||||||||||||||||
Weighted average of Preferred and Common Shares outstanding | 787,827,003 | 787,827,003 | 787,827,003 |
(1) | Defined as annualized quarterly net income divided by monthly average assets. | |
(2) | Defined as annualized quarterly net income divided by monthly average equity. | |
(3) | Defined as ADS price divided by ADS book value. | |
(4) | Defined as share price divided by share book value. | |
(5) | Share prices on the Colombian Stock Exchange. | |
(6) | Defined as market capitalization divided by annualized quarter results. | |
(7) | Prices by the end of the respective quarter. |
2. | CONSOLIDATED BALANCE SHEET |
2.1. | Assets |
BANCOLOMBIA’s assets totaled Ps. 57,961 billion as of September 30, 2008, representing an increase of 6.7% compared to Ps. 54,311 billion as of June 30, 2008 and an increase of 19.1% compared to Ps. 48,684 billion as of September 30, 2007.
2.1.1. Loan Portfolio
BANCOLOMBIA’s gross loan portfolio reached Ps 42,289 billion by the end of 3Q08, increasing 19.3% as compared to 3Q07. As in previous quarters, loan growth slowed, due in part to lower economic growth and higher interest rates in Colombia. COP denominated loans, which represent 70.8% of the loan portfolio, increased 4.3% over the quarter and 16.3% as compared to 3Q07 while U.S. dollar denominated loans increased 2.4% over the quarter and 18.0% over the year, when measured in US dollars. Accordingly, loan growth figures, measured in Colombian Peso “COP”, were impacted positively by the 13.6% COP depreciation occurred in 3Q08, as it increases the US dollar denominated loans conversion (The Bank maintains accounting records in Colombian pesos).
The composition of the loan portfolio did not change significantly during the quarter. The loan portfolio mix at the end of 3Q08, in terms of the gross loans as compared to total loans, was as follows:
• | Corporate loans represented 47.9%. | ||
• | Retail and SME’s segment comprised 31.6%. | ||
• | Financial leases represented 12.5%. | ||
• | Mortgage loans represented 8.0%. |
3
3Q08
Corporate loans amounted to Ps. 20,268 billion as of September 30, 2008, increasing 10.2% as compared to 2Q08 and 13.4% as compared to 3Q07, where trade finance loans were the most dynamic category over the quarter.
Retail and small and medium-sized enterprise (“SME”) loans amounted to Ps. 13,358 billion as of September 30, 2008. This represents an increase of 5.3% as compared to 2Q08 and 30.7% as compared to 3Q07.
Financial leases amounted to Ps. 5,289 billion, increasing 3.8% as compared to 2Q08 and 22.1% as compared to 3Q07.
Mortgage loans amounted to Ps. 3,373 billion in 3Q08, increasing 7.1% as compared to 2Q07 and 11.8% as compared to 3Q08. During 3Q08 BANCOLOMBIA securitized mortgage loans amounting to Ps. 191.1 billion. If the outstanding securitized loans are added to the outstanding loans in the Bank’s balance sheet, this segment would have recorded an increase of 23.2% compared to 3Q07 and 7.0% as compared to 2Q08.
Net loans and financial leases represented 69.8% of the total assets as of September 30, 2008, amounting to Ps. 40,474 billion.
LOAN PORTFOLIO | As of | Growth | ||||||||||||||||||
(Ps. million) | 30-Sep-07 | 30-Jun-08 | 30-Sep-08 | Sep-08 / Jun-08 | Sep-08 / Sep-07 | |||||||||||||||
CORPORATE | ||||||||||||||||||||
Working capital loans | 15,719,266 | 16,147,393 | 17,339,568 | 7.38 | % | 10.31 | % | |||||||||||||
Loans funded by domestic development banks | 852,098 | 983,613 | 950,134 | -3.40 | % | 11.51 | % | |||||||||||||
Trade Financing | 1,002,428 | 993,021 | 1,817,194 | 83.00 | % | 81.28 | % | |||||||||||||
Overdrafts | 140,692 | 227,848 | 111,717 | -50.97 | % | -20.59 | % | |||||||||||||
Credit Cards | 156,576 | 43,414 | 49,510 | 14.04 | % | -68.38 | % | |||||||||||||
TOTAL CORPORATE | 17,871,060 | 18,395,289 | 20,268,123 | 10.18 | % | 13.41 | % | |||||||||||||
RETAIL AND SMEs | ||||||||||||||||||||
Working capital loans | 2,874,562 | 3,913,770 | 4,096,301 | 4.66 | % | 42.50 | % | |||||||||||||
Personal loans | 3,554,436 | 3,982,508 | 4,242,273 | 6.52 | % | 19.35 | % | |||||||||||||
Loans funded by domestic development banks | 553,915 | 807,006 | 861,001 | 6.69 | % | 55.44 | % | |||||||||||||
Credit Cards | 1,701,169 | 2,220,956 | 2,376,832 | 7.02 | % | 39.72 | % | |||||||||||||
Overdrafts | 234,653 | 306,272 | 313,605 | 2.39 | % | 33.65 | % | |||||||||||||
Automobile loans | 1,214,440 | 1,358,355 | 1,340,500 | -1.31 | % | 10.38 | % | |||||||||||||
Trade Financing | 90,820 | 96,566 | 127,259 | 31.78 | % | 40.12 | % | |||||||||||||
TOTAL RETAIL AND SMEs | 10,223,995 | 12,685,433 | 13,357,771 | 5.30 | % | 30.65 | % | |||||||||||||
MORTGAGE | 3,017,151 | 3,149,911 | 3,373,317 | 7.09 | % | 11.80 | % | |||||||||||||
FINANCIAL LEASES | 4,332,769 | 5,096,379 | 5,289,495 | 3.79 | % | 22.08 | % | |||||||||||||
Total loans and financial leases | 35,444,975 | 39,327,012 | 42,288,706 | 7.53 | % | 19.31 | % | |||||||||||||
Allowance for loan losses and financial leases | (1,256,642 | ) | (1,616,521 | ) | (1,814,364 | ) | 12.24 | % | 44.38 | % | ||||||||||
Total loans and financial leases, net | 34,188,333 | 37,710,491 | 40,474,342 | 7.33 | % | 18.39 | % | |||||||||||||
4
3Q08
2.1.2. | Investment Portfolio |
As of September 30, 2008, BANCOLOMBIA’s net investment securities amounted to Ps. 6,947 billion and represented an increase of 12.6% when compared to the figures as of June 30, 2008, and an increase of 30.3% when compared to the figures as of September 30, 2007.
As of September 30, 2008, investments in debt securities amounted to Ps. 6,705 billion, increasing 11.5% as compared to Ps. 6,014 billion as of June 30, 2008, and 29.6% as compared to the Ps. 5,174 billion as of September 30, 2007. This increase is due in part to the increase experienced by U.S. dollar denominated debt securities portfolio which increased 7.9% over the quarter (not taking into account the 13.6% COP depreciation against the U.S. dollar in 3Q08.)
As of September 30, 2008, the debt securities portfolio represented 11.6% of total assets, slightly increasing its relative size from 11.1% of total assets in the previous quarter, and comprised 96.5% of BANCOLOMBIA’s net investment securities.
2.1.3. | Asset Quality |
Asset quality indicators remained stable during 3Q08. The ratio of past due loans (i.e. loans overdue for more than 30 days) to total loans was 3.5% at the end of 3Q08, Coverage measured by the ratio of allowances to past due loans increased to 124.1% at the end of 3Q08 from 120.1% in 2Q08. The ratio of allowances to loans classified as C, D and E (i.e. loans of an inferior quality as measured by their number of days past due) at the end of 3Q08 decreased to 120.9% from 125.9% in 2Q08.
Some asset deterioration occurred during the quarter as past due loans increased 8.8% as compared to the figures presented for the end of 2Q08. Nevertheless, allowances for loan losses increased 12.4% over the period, reaching Ps 1,857 billion and representing 4.4% of gross loans and financial leases. Non-performing loans represented 2.1% of gross loans and financial leases.
Under Colombian bank regulations, a loan is past due when it is at least 31 days past its due date. When a loan is over due more than 30 days, its total outstanding balance is considered in the calculation of the past due loans. The following table presents past due loans per loan category:
Past due loans / Gross loans as of | ||||||||||||
LOAN CLASSIFICATION | % of loan portfolio | 30-Jun-08 | 30-Sep-08 | |||||||||
Commercial loans | 61.7 | % | 2.1 | % | 2.3 | % | ||||||
Consumer loans | 17.4 | % | 6.2 | % | 5.8 | % | ||||||
Small business loans | 0.3 | % | 10.2 | % | 9.9 | % | ||||||
Mortgage loans | 8.0 | % | 7.5 | % | 8.5 | % | ||||||
Finance lease | 12.5 | % | 3.7 | % | 3.1 | % | ||||||
TOTAL LOAN PORTFOLIO | 100 | % | 3.5 | % | 3.5 | % | ||||||
LOANS AND FINANCIAL LEASES CLASSIFICATION | ||||||||||||||||||||||||
(Ps. million) | As of 30-Sep-07 | As of 30-Jun-08 | As of 30-Sep-08 | |||||||||||||||||||||
“A” Normal | 33,732,877 | 95.1 | % | 36,597,476 | 93.1 | % | 39,112,111 | 92.5 | % | |||||||||||||||
“B” Subnormal | 776,157 | 2.2 | % | 1,417,227 | 3.6 | % | 1,641,326 | 3.9 | % | |||||||||||||||
“C” Deficient | 248,459 | 0.7 | % | 374,663 | 1.0 | % | 507,581 | 1.2 | % | |||||||||||||||
“D” Doubtful recovery | 456,216 | 1.3 | % | 621,091 | 1.5 | % | 738,867 | 1.7 | % | |||||||||||||||
“E” Unrecoverable | 231,266 | 0.7 | % | 316,555 | 0.8 | % | 288,821 | 0.7 | % | |||||||||||||||
Total | 35,444,975 | 100 | % | 39,327,012 | 100 | % | 42,288,706 | 100 | % | |||||||||||||||
Loans and financial leases classified as C, D and E as a percentage of total loans and financial leases | 2.6 | % | 3.3 | % | 3.6 | % | ||||||||||||||||||
5
3Q08
ASSET QUALITY | As of | Growth | ||||||||||||||||||
(Ps. million) | Sep-07 | Jun-08 | Sep-08 | 3Q08 / 2Q08 | 3Q08 / 3Q07 | |||||||||||||||
Total performing past due loans(1) | 435,868 | 589,206 | 615,605 | 4.48 | % | 41.24 | % | |||||||||||||
Total non-performing past due loans | 544,985 | 786,658 | 880,600 | 11.94 | % | 61.58 | % | |||||||||||||
Total past due loans | 980,853 | 1,375,864 | 1,496,205 | 8.75 | % | 52.54 | % | |||||||||||||
Allowance for loans and accrued interest losses | 1,286,330 | 1,652,491 | 1,856,606 | 12.35 | % | 44.33 | % | |||||||||||||
Past due loans to total loans | 2.77 | % | 3.50 | % | 3.54 | % | ||||||||||||||
Non-performing loans as a percentage of total loans | 1.54 | % | 2.00 | % | 2.08 | % | ||||||||||||||
“C”, “D” and “E” loans as a percentage of total loans | 2.64 | % | 3.34 | % | 3.63 | % | ||||||||||||||
Allowances to past due loans(2) | 131.14 | % | 120.11 | % | 124.09 | % | ||||||||||||||
Allowance for loan and accrued interest losses as a percentage of “C”, “D” and “E” loans (2) | 137.44 | % | 125.92 | % | 120.93 | % | ||||||||||||||
Allowance for loan and accrued interest losses as a percentage of non-performing loans(2) | 236.03 | % | 210.06 | % | 210.83 | % | ||||||||||||||
Allowance for loan and accrued interest losses as a percentage of total loans | 3.63 | % | 4.20 | % | 4.39 | % | ||||||||||||||
Percentage of performing loans to total loans | 98.46 | % | 98.00 | % | 97.92 | % |
(1) | “Performing” past due loans are loans upon which the Bank continues to recognize income although interest in respect of such loans has not been received. Mortgage loans cease to accumulate interest on the statement of operations when they are more than 60 days past due. For all other loans and financial leasing operations of any type, interest is no longer accumulated after they are more than 30 days past due. | |
(2) | Under Colombian Bank regulations, a loan is past due when it is at least 31 days past the actual due date. |
2.2. | Liabilities |
As of September 30, 2008, BANCOLOMBIA’s liabilities reached Ps. 52,196 billion, increasing 6.5% as compared to 2Q08 and 18.9% as compared to 3Q07. COP denominated liabilities, which represent 69.0% of total liabilities, increased 4.1% over the quarter and 16.9% as compared to 3Q07 while U.S. dollar denominated increased 14.3% over the year (not taking into account the variation experienced by COP against the U.S. dollar).
During 3Q08 BANCOLOMBIA’s deposits reached Ps. 37,096 billion, increasing 7.4% as compared to 2Q08 and 21.1% as compared to 3Q07. COP denominated deposits, 71.8% of total deposits, increased 6.2% and 23.7% as compared to 2Q08 and 3Q07 respectively while U.S. dollar denominated deposits measured in U.S. dollars increased 6.4% as compared to 3Q07.
Deposit composition continued its trend in favor of interest bearing deposits in Colombia, a consequence of the higher interest rate scenario. Non-interest bearing deposits reached 12.4% of total deposits from 15.2% in 3Q07, while interest bearing deposits increased their share of deposits to 87.6%, coming from 84.8% in 3Q07.
By the end of 3Q08, bonds totaled Ps 3,801 billion of which Ps 2,098 billion are COP denominated. During 3Q08, BANCOLOMBIA and some of its subsidiaries successfully completed the issuance and offering of ordinary notes increasing its COP denominated outstanding bonds by 59.9% as compared to 2Q08.The outstanding amount of U.S. dollar denominated bonds totaled US$ 780 million as of September 30, 2008, which represents an increase of 3.0% over the previous quarter and 11.5% over the previous year.
At a meeting held October 24, 2008, the central bank of Colombia (the “Central Bank”) reduced the existing ordinary reserve requirement to 11% from 11.5% for demand deposits and to 4.5% from 6% for time deposits under 540 days. The Central Bank estimates that this measure will provide liquidity of approximately COP $1 trillion to the Colombian economy. This is one of several measures implemented by the Central Bank to provide adequate liquidity in Colombia for year end.
6
3Q08
Sep-07 | Participation | Jun-08 | Participation | Sep-08 | Participation | |||||||||||||||||||
Checking Accounts | 5,472,186 | 17.9 | % | 5,892,512 | 17.1 | % | 6,031,361 | 16.3 | % | |||||||||||||||
Time Deposits | 12,952,902 | 42.3 | % | 16,097,667 | 46.6 | % | 17,431,652 | 47.0 | % | |||||||||||||||
Savings deposits | 11,737,909 | 38.3 | % | 12,150,236 | 35.2 | % | 13,260,107 | 35.7 | % | |||||||||||||||
Other | 478,806 | 1.6 | % | 397,939 | 1.2 | % | 372,931 | 1.0 | % | |||||||||||||||
Total Deposits | 30,641,803 | 100 | % | 34,538,354 | 100 | % | 37,096,051 | 100 | % | |||||||||||||||
2.3. | Shareholders’ Equity |
BANCOLOMBIA’s shareholders’ equity amounted to Ps. 5,765 billion at the end of 3Q08, which represents an increase of 8.9% as compared to 2Q08, mostly due to the Bank’s operating results in 3Q08. As compared to 3Q07, this represents an increase of 20.9%.
At the end of 3Q08, the Bank’s consolidated ratio of technical capital to risk-weighted assets was 11.37%, which is 237 basis points above the minimum established by Colombian regulators.
Unrealized losses on debt securities amounted to Ps. 57.8 billion as of September 30, 2008, decreasing slightly from Ps. 63.7 billion presented by the end of 2Q08.
TECHNICAL CAPITAL RISK WEIGHTED ASSETS | ||||||||||||
Consolidated (Ps. million) | Sep-07 | Jun-08 | Sep-08 | |||||||||
Basic capital (Tier I) | 4,526,042 | 4,569,691 | 4,805,333 | |||||||||
Additional capital (Tier II) | 1,124,654 | 1,122,139 | 1,198,724 | |||||||||
Technical capital(1) | 5,650,696 | 5,691,830 | 6,004,058 | |||||||||
Risk weighted assets included market risk | 42,549,517 | 48,139,875 | 52,784,581 | |||||||||
CAPITAL ADEQUACY(2) | 13.28 | % | 11.82 | % | 11.37 | % | ||||||
(1) | Technical capital is the sum of basic capital and additional capital. | |
(2) | Capital Adequacy is technical capital divided by risk weighted assets. |
3. | INCOME STATEMENT |
BANCOLOMBIA’s net income amounted to Ps. 367.0 billion for 3Q08, increasing 15.9% as compared to the figures for 3Q07, driven by growth in the net interest income, fees and other operating income, and partially off-set by higher provisions and higher operating expenses. On a quarterly basis, net income for 3Q08 decreased 2.2% as compared to the Ps. 375.3 billion for 2Q08, as the second quarter numbers included non-recurring net income of Ps 40.7 billion related to the sale of the Bank’s interest in Multienlace S.A. and compensation for membership rights received as a consequence of the VISA Inc. initial public offering occurred in 2008.
Net income totaled Ps. 996.1 billion for the first nine months of 2008, increasing 30.3% as compared to the same period of 2007. Annualized return on average shareholders’ equity for 3Q08 is 26.7%. Annualized return on average equity for the first nine months of 2008 is 25.1% which represents an increase from the 24.4% for the same period of 2007.
7
3Q08
3.1. | Net Interest Income |
During 3Q08, interest on loans reached Ps. 1,265 billion, increasing 7.8% as compared to 2Q08 and 30.3% as compared to the Ps. 971 billion recorded in the figures for 3Q07. The increase was mainly driven by higher interest rates, as a result of the continuous re-pricing of loans, as well as larger loan portfolio.
Interest on investment securities increased 12.3% in 3Q08 to Ps. 124.8 billion, as a result of a higher average debt securities portfolio. Despite a volatile quarter for bond prices, the current structure of the debt securities portfolio has translated into more stable revenue generated by this line of income.
Overall, total interest income increased 8.0% as compared to 2Q08, while total interest expense grew 8.9%. Consequently, net interest income increased 7.4% as compared to 2Q08 and net interest margin increased from 7.5% in 2Q08 to 7.7% in 3Q08 due to higher margin in the loan portfolio (loans interest margin increased to 8.5% from 8.3% in 2Q08).
3.2. | Provisions |
Provisions for loans and accrued interest losses totaled Ps 294.2 billon in 3Q08 which represents an increase of 44.9% as compared to 3Q07 and 15.3% as compared to 2Q08. This increase was mainly driven by the higher levels of past due loans.
Recovery of charged-off loans totaled Ps 27.6 billion in 3Q08 while recovery of provisions for foreclosed assets and other assets totaled Ps 31.1 billion in the same period, increasing 48.6% and 259.7% respectively, as compared to 2Q08. As a result of the higher recoveries, total net provisions for 3Q08 amounted to Ps. 243.6 billion, which represents a 0.8% increase as compared to 2Q08 and 26.4% as compared to the figures for 3Q07.
Reference model for consumer loans
Beginning on July 1, 2008, BANCOLOMBIA has applied a new methodology for the calculation of provisions related to consumer loans in Colombia, as a consequence of changes in Colombian regulations. This new methodology is similar to the methodology that the Bank has applied for commercial loans since 3Q07; it calculates provisions taking into account probabilities of default, estimated losses and exposures given default. BANCOLOMBIA had previously increased the provisions related to consumer loans since 3Q07; therefore, the change of methodology did not affect significantly the amount of provisions in 3Q08.
3.3. | Fees and Income from Services |
Net fees and income from services totaled Ps. 346.7 billion during 3Q08, increasing 23.4% as compared to the figures for 3Q07 and increasing 16.0% as compared to 2Q08. For the first nine months of 2008, net fees and income from services totaled Ps. 952.6 billion increasing 17.1% as compared to the same period of 2007.
The sale of the Bank’s interest in Multienlace affected the 2Q08 fees and other services expenses as the contact center services provided by that company for quarter ended on March 31, 2008 were no longer eliminated in the consolidation process (i.e. no longer considered an inter-company transaction). Consequently, expenses related to contact services are part of the fees and other services expenses for 3Q08.
8
3Q08
The following table summarizes figures related to BANCOLOMBIA’s participation in the credit card business in Colombia.
ACCUMULATED CREDIT CARD BILLING | % | 2008 | ||||||||||||||
(Ps. million) | Sep-07 | Sep-08 | Growth | Market Share | ||||||||||||
Bancolombia VISA | 1,042,111 | 1,264,825 | 21.37 | % | 8.19 | % | ||||||||||
Bancolombia Mastercard | 1,426,638 | 1,642,889 | 15.16 | % | 10.64 | % | ||||||||||
Bancolombia American Express | 686,136 | 1,085,270 | 58.17 | % | 7.03 | % | ||||||||||
Total Bancolombia | 3,154,884 | 3,992,984 | 26.57 | % | 25.85 | % | ||||||||||
Colombian Credit Card Market | 14,007,469 | 15,447,396 | 10.28 | % |
Source: Credibanco and Redeban multicolor
CREDIT CARD MARKET SHARE | % | 2008 | ||||||||||||||
(Outstanding credit cards) | Sep-07 | Sep-08 | Growth | Market Share | ||||||||||||
Bancolombia VISA | 287,666 | 311,769 | 8.38 | % | 5.94 | % | ||||||||||
Bancolombia Mastercard | 335,430 | 364,703 | 8.73 | % | 6.94 | % | ||||||||||
Bancolombia American Express | 184,701 | 288,170 | 56.02 | % | 5.49 | % | ||||||||||
Total Bancolombia | 807,797 | 964,642 | 19.42 | % | 18.37 | % | ||||||||||
Colombian Credit Card Market | 5,088,774 | 5,251,945 | 3.21 | % |
Source: Credibanco and Redeban multicolor
3.4. | Other Operating Income |
As in previous quarters, total other operating income continues to outperform historic results. Other operating income totaled Ps. 130.6 billion for 3Q08, increasing 22.3% when compared to the figures for 2Q07 and decreasing 33.3% compared to 2Q08. This performance was driven by the following factors:
• | The sale of Multienlace S.A. in 2Q08 impacted positively other operating income for 2Q08 results. Specifically, the Bank received dividend income from Multienlace that totaled Ps. 15 billion and reported a gain on investment securities of Ps. 37 billion. | ||
• | The forward contract and derivatives line was affected by a negative mark-to-market valuation on the cross-currency swap portfolio as a result of the recent performance of some benchmark interest rates. | ||
• | Net foreign exchange gains reached Ps. 83.7 billion for 3Q08, driven by the COP depreciation presented over the quarter. This line aggregates the net gains of the COP conversion of U.S. dollar denominated assets and liabilities, trading and foreign currency exchange gains. |
Currency exposure
BANCOLOMBIA’s income statement was not significantly affected by the COP depreciation presented during 3Q08, because BANCOLOMBIA hedged a significant amount of its currency exposure.
BANCOLOMBIA’s exposure to currency risk primarily arises from changes in the U.S. dollar/COP exchange rate. The exposure to currency risk is managed by BANCOLOMBIA’s treasury division. BANCOLOMBIA uses a value at risk (“VaR”) calculation to limit the exposure to currency risk of its balance sheet. These limits are supervised on a daily basis by BANCOLOMBIA’s Market Risk Management Office.
9
3Q08
3.5. | Operating expenses |
For the first nine months of 2008, total operating expenses totaled Ps 1,832 billion increasing 13.1% as compared to the same period of 2007. During 3Q08, operating expenses totaled Ps. 637.9 billion, increasing 4.7% as compared to 2Q08 and 20.1% as compared to the figures for 3Q07.
The increases in operating expenses were mainly driven by:
• | Increases in personnel expenses (the sum of salaries and employee benefits, bonus plan payment and compensation) for nine months period ended September 30, 2008, which totaled Ps 786.2 billion, representing a 14.3% increase as compared to the same period last year and were mainly caused by bonus plan payments. However, on a quarter over quarter perspective, personnel expenses for 3Q08 decreased 0.7% as compared to 2Q08 and increased 14.9% as compared to figures for 3Q07. | ||
• | Increases in administrative and other expenses which totaled Ps. 900.2 billion for the nine months period ended September 30, 2008, increasing 12.6% as compared to the same period last year. Administrative and other expenses increased 7.8% as compared to 2Q08 and 22.3% as compared to the figures for 3Q07. |
Efficiency, measured by the ratio of operating expenses to net operating income, for the 3Q08 period was 46.4%, which compares favorably to 50.3%, recorded in 3Q07. The Bank’s efficiency, measured as operating expenses over average total assets, was 4.70% for 3Q08, the same as in 3Q07, but a slight decrease compared to the 4.72% for 2Q08.
3.6. | Income tax expense |
Income tax expense for 3Q08 amounted to Ps 124.4 billion decreasing 14.4% as compared to 2Q08 and increasing 153.9% as compared to the figures for 3Q07. Income tax expense for the first nine months of 2008 totaled Ps. 426.7 billion which represents an effective tax rate of 30.0% for the period.
PRINCIPAL RATIOS | Quarter | As of | ||||||||||||||||||
PROFITABILITY | 3Q07 | 2Q08 | 3Q08 | Sep-07 | Sep-08 | |||||||||||||||
Net interest margin(1) | 6.99 | % | 7.51 | % | 7.69 | % | 6.76 | % | 7.40 | % | ||||||||||
Return on average total assets(2) | 2.70 | % | 2.86 | % | 2.66 | % | 2.24 | % | 2.49 | % | ||||||||||
Return on average shareholders’ equity(3) | 28.81 | % | 29.48 | % | 26.66 | % | 24.35 | % | 25.14 | % | ||||||||||
EFFICIENCY | ||||||||||||||||||||
Operating expenses to net operating income(4) | 50.29 | % | 45.84 | % | 46.42 | % | 55.35 | % | 46.88 | % | ||||||||||
Operating expenses to average total assets(5) | 4.70 | % | 4.72 | % | 4.70 | % | 4.89 | % | 4.68 | % | ||||||||||
CAPITAL ADEQUACY | ||||||||||||||||||||
Shareholders’ equity to total assets | 9.79 | % | 9.74 | % | 9.95 | % | ||||||||||||||
Technical capital to risk weighted assets | 13.28 | % | 11.82 | % | 11.37 | % |
(1) | Calculated taking into account an average between the figures as of March 2008 and as of June 2008. It’s defined as net interest income divided by monthly average interest-earning assets. | |
(2) | Net interest income divided by monthly average interest-earning assets. | |
(3) | Net income by monthly average assets. | |
(4) | Net income by monthly average shareholders’ equity. | |
(5) | Operating expenses divided by monthly average assets. |
10
3Q08
BALANCE SHEET | Last | |||||||||||||||||||
(Ps. million) | Sep-07 | Jun-08 | Sep-08 | Quarter | Annual | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | 2,846,131 | 4,203,606 | 3,943,274 | -6.19 | % | 38.55 | % | |||||||||||||
Overnight funds sold | 1,691,508 | 820,588 | 570,307 | -30.50 | % | -66.28 | % | |||||||||||||
Total cash and equivalents | 4,537,639 | 5,024,194 | 4,513,581 | -10.16 | % | -0.53 | % | |||||||||||||
Debt securities | 5,173,644 | 6,013,604 | 6,705,148 | 11.50 | % | 29.60 | % | |||||||||||||
Trading | 1,745,887 | 1,954,381 | 2,125,396 | 8.75 | % | 21.74 | % | |||||||||||||
Available for Sale | 1,549,168 | 1,883,080 | 2,135,482 | 13.40 | % | 37.85 | % | |||||||||||||
Held to Maturity | 1,878,589 | 2,176,143 | 2,444,270 | 12.32 | % | 30.11 | % | |||||||||||||
Equity securities | 235,401 | 227,372 | 307,403 | 35.20 | % | 30.59 | % | |||||||||||||
Trading | 77,272 | 51,726 | 132,996 | 157.12 | % | 72.11 | % | |||||||||||||
Available for Sale | 158,129 | 175,646 | 174,407 | -0.71 | % | 10.29 | % | |||||||||||||
Market value allowance | -77,409 | -72,906 | -65,392 | -10.31 | % | -15.52 | % | |||||||||||||
Net investment securities | 5,331,636 | 6,168,070 | 6,947,159 | 12.63 | % | 30.30 | % | |||||||||||||
Commercial loans | 21,789,482 | 24,022,762 | 26,109,332 | 8.69 | % | 19.83 | % | |||||||||||||
Consumer loans | 6,189,229 | 6,925,338 | 7,375,132 | 6.49 | % | 19.16 | % | |||||||||||||
Small business loans | 116,344 | 132,622 | 141,430 | 6.64 | % | 21.56 | % | |||||||||||||
Mortgage loans | 3,017,151 | 3,149,911 | 3,373,317 | 7.09 | % | 11.80 | % | |||||||||||||
Finance lease | 4,332,769 | 5,096,379 | 5,289,495 | 3.79 | % | 22.08 | % | |||||||||||||
Allowance for loan losses | -1,256,642 | -1,616,521 | -1,814,364 | 12.24 | % | 44.38 | % | |||||||||||||
Net total loans and financial leases | 34,188,333 | 37,710,491 | 40,474,342 | 7.33 | % | 18.39 | % | |||||||||||||
Accrued interest receivable on loans | 400,825 | 482,991 | 525,401 | 8.78 | % | 31.08 | % | |||||||||||||
Allowance for accrued interest losses | -29,688 | -35,970 | -42,242 | 17.44 | % | 42.29 | % | |||||||||||||
Net total interest accrued | 371,137 | 447,021 | 483,159 | 8.08 | % | 30.18 | % | |||||||||||||
Customers’ acceptances and derivatives | 178,461 | 100,081 | 235,133 | 134.94 | % | 31.76 | % | |||||||||||||
Net accounts receivable | 676,696 | 855,548 | 840,638 | -1.74 | % | 24.23 | % | |||||||||||||
Net premises and equipment | 806,688 | 885,666 | 937,993 | 5.91 | % | 16.28 | % | |||||||||||||
Foreclosed assets, net | 27,893 | 23,672 | 24,179 | 2.14 | % | -13.32 | % | |||||||||||||
Prepaid expenses and deferred charges | 133,953 | 135,071 | 141,609 | 4.84 | % | 5.72 | % | |||||||||||||
Goodwill | 917,025 | 909,121 | 1,019,732 | 12.17 | % | 11.20 | % | |||||||||||||
Operating leases, net | 414,959 | 630,942 | 651,759 | 3.30 | % | 57.07 | % | |||||||||||||
Other | 739,947 | 904,895 | 1,141,433 | 26.14 | % | 54.26 | % | |||||||||||||
Reappraisal of assets | 359,593 | 515,796 | 550,321 | 6.69 | % | 53.04 | % | |||||||||||||
Total assets | 48,683,960 | 54,310,568 | 57,961,038 | 6.72 | % | 19.06 | % | |||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||
DEPOSITS | ||||||||||||||||||||
Non-interest bearing | 4,647,520 | 4,764,975 | 4,582,805 | -3.82 | % | -1.39 | % | |||||||||||||
Checking accounts | 4,168,714 | 4,367,036 | 4,209,874 | -3.60 | % | 0.99 | % | |||||||||||||
Other | 478,806 | 397,939 | 372,931 | -6.28 | % | -22.11 | % | |||||||||||||
Interest bearing | 25,994,283 | 29,773,379 | 32,513,246 | 9.20 | % | 25.08 | % | |||||||||||||
Checking accounts | 1,303,472 | 1,525,476 | 1,821,487 | 19.40 | % | 39.74 | % | |||||||||||||
Time deposits | 12,952,902 | 16,097,667 | 17,431,652 | 8.29 | % | 34.58 | % | |||||||||||||
Savings deposits | 11,737,909 | 12,150,236 | 13,260,107 | 9.13 | % | 12.97 | % | |||||||||||||
Total deposits | 30,641,803 | 34,538,354 | 37,096,051 | 7.41 | % | 21.06 | % | |||||||||||||
Overnight funds | 2,127,637 | 2,772,806 | 2,252,672 | -18.76 | % | 5.88 | % | |||||||||||||
Bank acceptances outstanding | 52,378 | 36,536 | 49,507 | 35.50 | % | -5.48 | % | |||||||||||||
Interbank borrowings | 1,170,339 | 1,493,083 | 1,704,714 | 14.17 | % | 45.66 | % | |||||||||||||
Borrowings from domestic development banks | 3,270,537 | 3,718,117 | 3,682,014 | -0.97 | % | 12.58 | % | |||||||||||||
Accounts payable | 2,191,160 | 2,059,164 | 1,660,001 | -19.38 | % | -24.24 | % | |||||||||||||
Accrued interest payable | 269,085 | 334,435 | 401,357 | 20.01 | % | 49.16 | % | |||||||||||||
Other liabilities | 479,070 | 521,447 | 539,330 | 3.43 | % | 12.58 | % | |||||||||||||
Bonds | 2,937,268 | 2,767,762 | 3,801,313 | 37.34 | % | 29.42 | % | |||||||||||||
Accrued expenses | 606,235 | 688,604 | 919,320 | 33.50 | % | 51.64 | % | |||||||||||||
Minority interest in consolidated subsidiaries | 171,029 | 88,510 | 89,753 | 1.40 | % | -47.52 | % | |||||||||||||
Total liabilities | 43,916,541 | 49,018,818 | 52,196,032 | 6.48 | % | 18.85 | % | |||||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Subscribed and paid in capital | 393,914 | 393,914 | 393,914 | 0.00 | % | 0.00 | % | |||||||||||||
Retained earnings | 3,789,802 | 4,223,649 | 4,658,803 | 10.30 | % | 22.93 | % | |||||||||||||
Appropiated | 3,025,375 | 3,594,426 | 3,662,613 | 1.90 | % | 21.06 | % | |||||||||||||
Unappropiated | 764,427 | 629,223 | 996,190 | 58.32 | % | 30.32 | % | |||||||||||||
Reappraisal and others | 617,514 | 737,842 | 770,102 | 4.37 | % | 24.71 | % | |||||||||||||
Gross unrealized gain or loss on debt securities | -33,811 | -63,655 | -57,813 | -9.18 | % | 70.99 | % | |||||||||||||
Total shareholder’s equity | 4,767,419 | 5,291,750 | 5,765,006 | 8.94 | % | 20.93 | % | |||||||||||||
11
3Q08
INCOME STATEMENT | As of | Growth | Growth | |||||||||||||||||||||||||||||
(Ps. million) | Sep-07 | Sep-08 | Sep-08 / Sep-07 | 3Q07 | 2Q08 | 3Q08 | 3Q08 / 2Q08 | 3Q08 / 3Q07 | ||||||||||||||||||||||||
Interest income and expenses | ||||||||||||||||||||||||||||||||
Interest on loans | 2,636,236 | 3,572,916 | 35.53 | % | 971,352 | 1,174,262 | 1,265,216 | 7.75 | % | 30.25 | % | |||||||||||||||||||||
Interest on investment securities | 310,728 | 315,660 | 1.59 | % | 92,996 | 111,136 | 124,821 | 12.31 | % | 34.22 | % | |||||||||||||||||||||
Overnight funds | 86,008 | 74,982 | -12.82 | % | 29,540 | 20,528 | 25,651 | 24.96 | % | -13.17 | % | |||||||||||||||||||||
Leasing | 401,735 | 565,330 | 40.72 | % | 148,796 | 188,739 | 198,930 | 5.40 | % | 33.69 | % | |||||||||||||||||||||
Total interest income | 3,434,707 | 4,528,888 | 31.86 | % | 1,242,684 | 1,494,665 | 1,614,618 | 8.03 | % | 29.93 | % | |||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||||||
Checking accounts | 28,481 | 27,168 | -4.61 | % | 9,126 | 8,745 | 9,604 | 9.82 | % | 5.24 | % | |||||||||||||||||||||
Time deposits | 566,399 | 906,775 | 60.09 | % | 219,594 | 301,342 | 328,607 | 9.05 | % | 49.64 | % | |||||||||||||||||||||
Savings deposits | 331,535 | 413,329 | 24.67 | % | 119,021 | 132,763 | 141,685 | 6.72 | % | 19.04 | % | |||||||||||||||||||||
Total interest on deposits | 926,415 | 1,347,272 | 45.43 | % | 347,741 | 442,850 | 479,896 | 8.37 | % | 38.00 | % | |||||||||||||||||||||
Interbank borrowings | 91,068 | 49,462 | -45.69 | % | 20,966 | 13,268 | 19,527 | 47.17 | % | -6.86 | % | |||||||||||||||||||||
Borrowings from domestic development banks | 192,806 | 252,238 | 30.82 | % | 73,029 | 84,469 | 83,104 | -1.62 | % | 13.80 | % | |||||||||||||||||||||
Overnight funds | 92,570 | 114,431 | 23.62 | % | 39,166 | 35,270 | 36,964 | 4.80 | % | -5.62 | % | |||||||||||||||||||||
Bonds | 110,882 | 190,143 | 71.48 | % | 45,705 | 60,982 | 74,056 | 21.44 | % | 62.03 | % | |||||||||||||||||||||
Total interest expense | 1,413,741 | 1,953,546 | 38.18 | % | 526,607 | 636,839 | 693,547 | 8.90 | % | 31.70 | % | |||||||||||||||||||||
Net interest income | 2,020,966 | 2,575,342 | 27.43 | % | 716,077 | 857,826 | 921,071 | 7.37 | % | 28.63 | % | |||||||||||||||||||||
Provision for loan and accrued interest losses, net | (450,008 | ) | (743,333 | ) | 65.18 | % | (203,047 | ) | (255,225 | ) | (294,226 | ) | 15.28 | % | 44.91 | % | ||||||||||||||||
Recovery of charged-off loans | 65,472 | 68,108 | 4.03 | % | 24,222 | 18,607 | 27,660 | 48.65 | % | 14.19 | % | |||||||||||||||||||||
Provision for foreclosed assets and other assets | (53,721 | ) | (32,388 | ) | -39.71 | % | (22,963 | ) | (13,700 | ) | (8,072 | ) | -41.08 | % | -64.85 | % | ||||||||||||||||
Recovery of provisions for foreclosed assets and other assets | 51,941 | 49,110 | -5.45 | % | 9,079 | 8,633 | 31,054 | 259.71 | % | 242.04 | % | |||||||||||||||||||||
Total net provisions | (386,316 | ) | (658,503 | ) | 70.46 | % | (192,709 | ) | (241,685 | ) | (243,584 | ) | 0.79 | % | 26.40 | % | ||||||||||||||||
Net interest income after provision for loans and accrued interest losses | 1,634,650 | 1,916,839 | 17.26 | % | 523,368 | 616,141 | 677,487 | 9.96 | % | 29.45 | % | |||||||||||||||||||||
Commissions from banking services and other services | 176,439 | 178,185 | 0.99 | % | 86,090 | 56,937 | 67,872 | 19.21 | % | -21.16 | % | |||||||||||||||||||||
Electronic services and ATM fees | 58,081 | 63,250 | 8.90 | % | 20,955 | 21,171 | 20,687 | -2.29 | % | -1.28 | % | |||||||||||||||||||||
Branch network services | 76,595 | 75,713 | -1.15 | % | 25,869 | 25,166 | 26,680 | 6.02 | % | 3.14 | % | |||||||||||||||||||||
Collections and payments fees | 93,496 | 115,380 | 23.41 | % | 32,937 | 38,753 | 39,731 | 2.52 | % | 20.63 | % | |||||||||||||||||||||
Credit card merchant fees | 28,106 | 20,305 | -27.76 | % | 8,800 | 5,906 | 6,321 | 7.03 | % | -28.17 | % | |||||||||||||||||||||
Credit and debit card annual fees | 201,963 | 327,822 | 62.32 | % | 52,523 | 108,029 | 119,293 | 10.43 | % | 127.13 | % | |||||||||||||||||||||
Checking fees | 49,646 | 50,859 | 2.44 | % | 16,546 | 16,726 | 17,783 | 6.32 | % | 7.48 | % | |||||||||||||||||||||
Fiduciary activities | 49,956 | 68,603 | 37.33 | % | 17,161 | 22,176 | 26,623 | 20.05 | % | 55.14 | % | |||||||||||||||||||||
Pension plan administration | 62,179 | 60,758 | -2.29 | % | 20,912 | 19,143 | 20,761 | 8.45 | % | -0.72 | % | |||||||||||||||||||||
Brokerage fees | 42,488 | 42,593 | 0.25 | % | 12,539 | 16,329 | 12,137 | -25.67 | % | -3.21 | % | |||||||||||||||||||||
Check remittance | 16,798 | 18,945 | 12.78 | % | 5,672 | 6,333 | 5,934 | -6.30 | % | 4.62 | % | |||||||||||||||||||||
International operations | 31,189 | 32,450 | 4.04 | % | 10,357 | 9,872 | 12,485 | 26.47 | % | 20.55 | % | |||||||||||||||||||||
Fees and other service income | 886,936 | 1,054,863 | 18.93 | % | 310,361 | 346,541 | 376,307 | 8.59 | % | 21.25 | % | |||||||||||||||||||||
Fees and other service expenses | (73,255 | ) | (102,221 | ) | 39.54 | % | (29,395 | ) | (47,557 | ) | (29,590 | ) | -37.78 | % | 0.66 | % | ||||||||||||||||
Total fees and income from services, net | 813,681 | 952,642 | 17.08 | % | 280,966 | 298,984 | 346,717 | 15.97 | % | 23.40 | % | |||||||||||||||||||||
Other operating income | ||||||||||||||||||||||||||||||||
Net foreign exchange gains | 14,271 | 33,400 | 134.04 | % | 100,996 | 59,760 | 83,726 | 40.10 | % | -17.10 | % | |||||||||||||||||||||
Forward contracts in foreign currency | 69,706 | 164,139 | 135.47 | % | (40,634 | ) | 16,846 | (18,709 | ) | -211.06 | % | -53.96 | % | |||||||||||||||||||
Gains on sales of investments on equity securities | (15,224 | ) | 36,495 | 339.72 | % | (101 | ) | 37,180 | (589 | ) | -101.58 | % | 483.17 | % | ||||||||||||||||||
Securitization income | 32,427 | 31,557 | -2.68 | % | 11,981 | 12,776 | 9,713 | -23.97 | % | -18.93 | % | |||||||||||||||||||||
Dividend income | 18,606 | 39,497 | 112.28 | % | 2,460 | 15,929 | 3,080 | -80.66 | % | 25.20 | % | |||||||||||||||||||||
Revenues from commercial subsidiaries | 66,369 | 76,437 | 15.17 | % | 22,854 | 25,635 | 24,715 | -3.59 | % | 8.14 | % | |||||||||||||||||||||
Insurance income | 1,493 | 7,499 | 402.28 | % | (676 | ) | 985 | 1,702 | 72.79 | % | 351.78 | % | ||||||||||||||||||||
Rent, communication, postage, and others | 19,200 | 72,102 | 275.53 | % | 9,926 | 26,650 | 26,984 | 1.25 | % | 171.85 | % | |||||||||||||||||||||
Total other operating income | 206,848 | 461,126 | 122.93 | % | 106,806 | 195,761 | 130,622 | -33.27 | % | 22.30 | % | |||||||||||||||||||||
Total income | 2,655,179 | 3,330,607 | 25.44 | % | 911,140 | 1,110,886 | 1,154,826 | 3.96 | % | 26.75 | % | |||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | 618,026 | 659,519 | 6.71 | % | 205,180 | 217,796 | 222,506 | 2.16 | % | 8.44 | % | |||||||||||||||||||||
Bonus plan payments | 52,309 | 107,713 | 105.92 | % | 17,545 | 47,519 | 41,742 | -12.16 | % | 137.91 | % | |||||||||||||||||||||
Compensation | 17,239 | 18,981 | 10.10 | % | 6,826 | 6,301 | 5,447 | -13.55 | % | -20.20 | % | |||||||||||||||||||||
Administrative and other expenses | 799,328 | 900,176 | 12.62 | % | 259,013 | 293,916 | 316,785 | 7.78 | % | 22.30 | % | |||||||||||||||||||||
Deposit security, net | 36,831 | 39,594 | 7.50 | % | 12,515 | 12,354 | 12,916 | 4.55 | % | 3.20 | % | |||||||||||||||||||||
Donation expenses | 2,395 | 4,813 | 100.96 | % | 601 | 546 | 3,294 | 503.30 | % | 448.09 | % | |||||||||||||||||||||
Depreciation | 92,891 | 100,768 | 8.48 | % | 29,695 | 31,134 | 35,230 | 13.16 | % | 18.64 | % | |||||||||||||||||||||
Total operating expenses | 1,619,019 | 1,831,564 | 13.13 | % | 531,375 | 609,566 | 637,920 | 4.65 | % | 20.05 | % | |||||||||||||||||||||
Net operating income | 1,036,160 | 1,499,043 | 44.67 | % | 379,765 | 501,320 | 516,906 | 3.11 | % | 36.11 | % | |||||||||||||||||||||
Goodwill amortization(1) | 50,716 | 38,345 | -24.39 | % | 19,399 | 10,497 | 11,287 | 7.53 | % | -41.82 | % | |||||||||||||||||||||
Non-operating income (expense) | ||||||||||||||||||||||||||||||||
Other income | 76,354 | 94,052 | 23.18 | % | 28,297 | 58,628 | 13,086 | -77.68 | % | -53.75 | % | |||||||||||||||||||||
Minority interest | (26,072 | ) | (13,150 | ) | -49.56 | % | (2,174 | ) | (6,435 | ) | (2,954 | ) | -54.09 | % | 35.88 | % | ||||||||||||||||
Other expense | (46,638 | ) | (118,677 | ) | 154.46 | % | (20,749 | ) | (22,310 | ) | (24,361 | ) | 9.19 | % | 17.41 | % | ||||||||||||||||
Total non-operating income | 3,644 | (37,775 | ) | -1136.64 | % | 5,374 | 29,883 | (14,229 | ) | -147.62 | % | -364.77 | % | |||||||||||||||||||
Income before income taxes | 989,088 | 1,422,923 | 43.86 | % | 365,740 | 520,706 | 491,390 | -5.63 | % | 34.36 | % | |||||||||||||||||||||
Income tax expense | (224,661 | ) | (426,733 | ) | 89.95 | % | (49,007 | ) | (145,359 | ) | (124,423 | ) | -14.40 | % | 153.89 | % | ||||||||||||||||
Net income | 764,427 | 996,190 | 30.32 | % | 316,733 | 375,347 | 366,967 | -2.23 | % | 15.86 | % | |||||||||||||||||||||
12
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BANCOLOMBIA S.A. (Registrant) | ||||
Date: November 6, 2008 | By: | /s/ JAIME ALBERTO VELÁSQUEZ B. | ||
Name: | Jaime Alberto Velásquez B. | |||
Title: | Vice President of Finance | |||