UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of November, 2015

 

Comission File Number 001-32535

 

Bancolombia S.A.

(Translation of registrant’s name into English)

 

Cra. 48 # 26-85
Medellín, Colombia
(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F þ                    Form 40-F ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):___

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(2):___

 

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes o                    No þ

 

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

  

 

 

 

   
   
  3Q15

 

BANCOLOMBIA S.A. (NYSE: CIB; BVC: BCOLOMBIA, PFBCOLOM) REPORTS CONSOLIDATED NET INCOME OF COP 541 BILLION FOR THE THIRD QUARTER OF 2015

 

·Net loan portfolio increased 31.1% during the last twelve months. This loan portfolio growth was driven by commercial and mortgage loans. Also, annual growth was positively affected by the depreciation of the COP versus the USD.

 

·The balance sheet remains strong. 90-day past due loans at the end of 3Q15 were 1.8% of total gross loans (3.1% for 30 days) and the coverage ratio for these past due loans was 211% (119% for 30 days). The solvency ratio was 13.2% with a Tier 1 of 8.0%.

 

·Net interest income grew 31.7%% in 3Q15 compared to the third quarter of 2014. This growth in NII is explained by greater volumes in net loans and by a stable NIM.

 

·Fees increased by 19.5% in 3Q15 compared to the third quarter of 2014. This notable growth was mainly driven by an increase in fees related to credit and debit cards, banking services and by the distribution of insurance products through the bank’s network.

 

·Efficiency in 3Q15 was 57.4%, which improved when compared to efficiency in the third quarter of 2014. Efficiency in Colombia continues on a positive trend, with operating income growing faster than operating expenses.

 

·Despite a solid operational performance throughout 2015, higher loan loss provisions have impacted net income in 3Q15, thus showing a 3.6% decrease compared to the third quarter of 2014.

 

November 12, 2015. Medellín, Colombia – Today, BANCOLOMBIA S.A. (“Bancolombia” or “the Bank”) announced its earnings results for the third quarter of 20151.

 

For the quarter ended on September 30, 2015 (“3Q15”), Bancolombia reported consolidated net income of COP 541 billion, or COP 545 per share - USD 0.71 per ADR. This net income represents a 22.1% decrease compared to the quarter ended on June 30, 2015 (“2Q15”) and a 3.6% decrease compared to the quarter ended on September 30, 2014 (“3Q14”).

 

All data, results, and analyses shown in this report, treat Tuya S.A. as a discontinued operation. For this reason, Bancolombia does not consolidate this operation in its consolidated financial statements and makes reference to it through a separate line on its Balance Sheet and Income Statement.

 

 

1. This report corresponds to the interim unaudited consolidated financial statements of BANCOLOMBIA S.A. and its subsidiaries (“BANCOLOMBIA” or “The Bank”) which Bancolombia controls, amongst others, by owning directly or indirectly, more than 50% of the voting capital stock. These financial statements have been prepared in accordance with International Financial Reporting Standards – IFRS. BANCOLOMBIA maintains accounting records in Colombian pesos, referred to herein as “Ps.” or “COP”. The statements of income for the quarter ended September 30, 2015 are not necessarily indicative of the results for any other future interim period. For more information, please refer to the Bank's filings with the Securities and Exchange Commission, which are available on the Commission's website at www.sec.gov. CAUTIONARY NOTE REGARDING CHANGES IN THE BANK’S ACCOUNTING POLICIES: Until 2014, BANCOLOMBIA prepared its financial statements under the rules issued by Superintendencia Financiera de Colombia (Colombian GAAP). Beginning on January 1, 2015, the financial statements of BANCOLOMBIA are being prepared under IFRS. BANCOLOMBIA’s first IFRS financial statements will cover the year ending in 2015 and will also include the comparative financial statements for the year ending in 2014. Until Bancolombia prepares the first annual consolidated financial statements under IFRS and definitively establishes its IFRS accounting policies in accordance with the IFRS 1, the interim unaudited consolidated financial information for interim periods within 2015, and the comparative 2014 period, may be further amended.

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, 2015 $3,086.75 = US$ 1

 

 1

 

 

   
   
  3Q15

 

BANCOLOMBIA: Summary of consolidated financial quarterly results

 

CONSOLIDATED BALANCE SHEET

AND INCOME STATEMENT

 

   Quarter   Growth 
(COP millions)  3Q14   2Q15   3Q15   3Q15/2Q15   3Q15/3Q14 
ASSETS                         
Net Loans   98,008,645    116,571,153    128,486,302    10.22%   31.10%
Investments   12,437,467    12,774,812    12,986,738    1.66%   4.42%
Other assets   25,352,638    28,917,363    33,402,333    15.51%   31.75%
Total assets   135,798,750    158,263,328    174,875,373    10.50%   28.78%
                          
LIABILITIES AND SHAREHOLDERS' EQUITY                         
Deposits   85,508,457    97,540,528    109,368,791    12.13%   27.90%
Other liabilities   33,930,574    42,121,701    45,655,237    8.39%   34.55%
Total liabilities   119,439,031    139,662,229    155,024,028    11.00%   29.79%
Non-controlling interest   477,625    515,767    540,458    4.79%   13.16%
Shareholders' equity   15,882,094    18,085,332    19,310,887    6.78%   21.59%
Total liabilities and shareholders' equity   135,798,750    158,263,328    174,875,373    10.50%   28.78%
                          
Interest income   2,134,826    2,716,090    2,811,019    3.50%   31.67%
Interest expense   (801,421)   (941,015)   (1,061,376)   12.79%   32.44%
Net interest income   1,333,405    1,775,075    1,749,643    -1.43%   31.22%
Net provisions   (273,388)   (413,178)   (491,034)   18.84%   79.61%
Fees and income from service, net   429,202    491,336    512,845    4.38%   19.49%
Other operating income   118,188    174,405    204,124    17.04%   72.71%
Total Dividends received and equity method   64,647    75,779    (14,490)   -119.12%   -122.41%
Total operating expense   (1,113,153)   (1,267,769)   (1,407,744)   11.04%   26.46%
Total other income (expenses)   69,590    62,272    64,495    3.57%   -7.32%
Profit before tax   628,491    897,920    617,839    -31.19%   -1.69%
Income tax   (96,966)   (203,336)   (82,454)   -59.45%   -14.97%
Tax on wealth   -    -    -           
Net income before non-controlling interest   531,525    694,584    535,385    -22.92%   0.73%
Non-controlling interest   3,807    (9,187)   (11,297)   22.97%   -396.74%
Net income before Descontinued Operations   535,332    685,397    524,088    -23.54%   -2.10%
Discontinued Operations Net Income   26,360    9,585    17,226    79.72%   -34.65%
Net income   561,692    694,982    541,314    -22.11%   -3.63%
                          
       Quarter       As of 
PRINCIPAL RATIOS  3Q14   2Q15   3Q15   3Q14   3Q15 
PROFITABILITY                         
Net interest margin (1) from continuing operations   4.88%   5.41%   4.94%   5.20%   5.28%
Return on average total assets (2) from continuing operations   1.64%   1.77%   1.25%   1.78%   1.54%
Return on average shareholders´ equity (3)   13.76%   15.78%   11.16%   15.19%   13.49%
EFFICIENCY                         
Operating expenses to net operating income   61.84%   52.78%   57.41%   49.88%   52.35%
Operating expenses to average total assets   3.48%   3.38%   3.36%   3.29%   3.30%
Operating expenses to productive assets   4.17%   3.99%   3.97%   1.95%   2.93%
CAPITAL ADEQUACY                         
Shareholders' equity to total assets   11.69%   11.43%   11.04%          
Technical capital to risk weighted assets        13.66%   13.23%          
KEY FINANCIAL HIGHLIGHTS                         
Net income per ADS from continuing operations   1.10    1.10    0.71           
Net income per share $COP from continuing operations   556.58    712.60    544.89           
P/BV ADS (4)   1.74    1.49    1.24           
P/BV Local (5) (6)   1.68    1.42    1.18           
P/E (7) from continuing operations   12.64    9.57    11.13           
ADR price   56.72    43.00    32.20           
Common share price (8)   27,680    26,700    23,720           
Weighted average of Preferred Shares outstanding (9)   961,827,000    961,827,000    961,827,000           
USD exchange rate (quarter end)   2,022.00    2,598.68    3,086.75           

 

(1) Defined as net interest income divided by monthly average interest-earning assets. (2) Net income divided by monthly average assets. (3) Net income divided by monthly average shareholders' equity. (4) Defined as ADS price divided by ADS book value. (5) Defined as share price divided by share book value. (6) Share prices on the Colombian Stock Exchange. (7) Defined as market capitalization divided by annualized quarter results. (8) Prices at the end of the respective quarter.

 

 2

 

 

   
   
  3Q15

 

1.BALANCE SHEET

 

1.1.Assets

 

As of September 30, 2015, Bancolombia’s assets totaled COP 174,875 billion, which represents an increase of 10.5% compared to 2Q15 and of 28.8% compared to 3Q14. Of the annual growth in the loan book, 16.2% is explained by the depreciation of the peso against the dollar.

 

The increase in assets in the quarter and in the year was explained by the organic growth of the loan portfolio as well as by a depreciation of the COP versus the USD of 18.7% during the quarter and 52.7% over the past 12 months.

 

1.2.Loan Portfolio

 

The following table shows the composition of Bancolombia’s investments and loans by type and currency:

 

(COP Million)  Amounts in COP   Amounts in USD converted to COP   Amounts in USD (thousands)   Total 
(1 USD =3086.75 COP)      3Q15/2Q15       3Q15/2Q15       3Q15/2Q15       3Q15/2Q15 
Commercial loans   60,068,023    6.85%   35,360,694    16.65%   11,455,639    -1.80%   95,428,717    10.28%
Consumer loans   12,294,016    2.58%   7,620,709    20.51%   2,468,846    1.46%   19,914,725    8.78%
Mortgage loans   10,320,617    4.34%   7,025,720    22.34%   2,276,090    2.99%   17,346,337    10.95%
Small  business loans   582,945    4.00%   249,494    29.49%   80,827    9.02%   832,439    10.52%
Interests paid in advance   (21,365)   8.39%   (3,049)   8.24%   (988)   -8.88%   (24,414)   8.37%
Gross loans   83,244,236    5.87%   50,253,568    18.05%   16,280,414    -0.62%   133,497,804    10.14%
Total assets   104,177,778    6.10%   70,697,595    17.68%   22,903,570    -0.93%   174,875,373    10.50%

 

The most relevant aspects regarding the evolution of the loan portfolio during 3Q15 were:

 

·The growth of commercial and mortgage loans during 3Q15 shows a growing credit demand in COP denominated loans compared to previous quarters, spurred by specific disbursements to large corporate clients. Consumer loans grew over the quarter in line with seasonal factors.

 

·Mortgage loans denominated in COP presented a dynamic performance, growing 4.3% quarter on quarter. The dynamism of mortgage lending in Colombia is explained by lower long-term interest rates, as well as by the Colombian government’s interest rate subsidy programs. On the other hand, the mortgage balance denominated in USD from our operation in El Salvador and Panama accounted for 45% of the mortgage loans at the end of 3Q15.

 

·Total reserves (allowances in the balance sheet) for loan losses increased by 8.2% during 3Q15 and totaled COP 5,012 billion, equivalent to 3.7% of gross loans at the end of the quarter. For further explanation regarding coverage of the loan portfolio and credit quality trends, see section “2.4. Asset Quality, Provision Charges and Balance Sheet Strength”.

 

The following table summarizes Bancolombia’s total loan portfolio:

 

LOAN PORTFOLIO                       
(COP million)  Sep-14   Jun-15   Sep-15   3Q15/2Q15   3Q15/3Q14   % of total loans 
Commercial   73,210,555    86,529,972    95,428,717    10.28%   30.35%   71.5%
Consumer   16,037,411    18,307,774    19,914,725    8.78%   24.18%   14.9%
Mortgage   12,671,540    15,634,121    17,346,337    10.95%   36.89%   13.0%
Microcredit   605,199    753,175    832,439    10.52%   37.55%   0.6%
Interests received in advance   (16,660)   (22,528)   (24,414)   8.37%   46.54%   0.0%
Total loan portfolio   102,508,045    121,202,514    133,497,804    10.14%   30.23%   100.0%
Allowance for loan losses   (4,499,400)   (4,631,361)   (5,011,502)   8.21%   11.38%     
Total loans, net   98,008,645    116,571,153    128,486,302    10.22%   31.10%     

 

 3

 

 

   
   
  3Q15

 

1.3.Investment Portfolio

 

As of September 30, 2015, Bancolombia’s net investment portfolio totaled COP 12,987 billion, increasing 1.7% compared to the figure reported in 2Q15 and growing 4.4% compared to 3Q14. This quarterly increase is explained by the bank's strategy that aggressively increased its time deposits in August and invested invest its excess cash in liquid assets. The investment portfolio consists primarily of debt securities, which represent 93.2% of Bancolombia’s total investments and 5.5% of assets at the end of 3Q15.

 

At the end of 3Q15, the investments in debt securities had a duration of 19.2 months and a yield to maturity of 6.08%.

 

1.4.Goodwill and intangibles

 

As of 3Q15, Bancolombia’s goodwill and intangibles totaled COP 5,730 billion, increasing 16.1% compared to 2Q15. This variation is explained by the depreciation of the COP against the USD during the quarter.

 

1.5.Funding

 

As of September 30, 2015, Bancolombia’s liabilities totaled COP 155,024 billion, increasing 11.0% with respect to 2Q15 and 29.8% compared to 3Q14.

 

Deposits by customers totaled COP 108.933 billion (or 70.3% of liabilities) at the end of 3Q15, increasing 12.1% during the quarter and 28.0% over the last 12 months. The net loans to deposits ratio (including borrowings from domestic development banks) was 112% at the end of 3Q15, which marks a decrease in comparison to the 114% reported in 2Q15, but increasing in regard to the 109% reported in 3Q14.

 

Bancolombia’s funding strategy during the quarter was geared towards increasing its stock of deposits in August while maintaining its liquidity position. This strategy allowed the bank to maintain optimal liquidity levels, despite the rising funding costs. The ultimate goal is to defend the net interest margin and to assure liquidity.

 

Funding mix            
COP Million  3Q14   2Q15   3Q15 
Checking accounts   15,691,071    14%   17,852,471    14%   18,929,039    13%
Saving accounts   34,288,009    31%   39,136,638    30%   43,976,398    30%
Time deposits   34,352,805    31%   39,165,003    30%   44,918,448    31%
Other deposits   3,545,428    3%   4,135,788    3%   2,469,584    2%
Long term debt   12,472,151    11%   15,127,037    12%   18,219,495    13%
Loans with banks   11,905,265    11%   15,161,308    12%   16,183,405    11%
Total Funds   112,254,729    100%   130,578,245    100%   144,696,369    100%

 

 4

 

 

   
   
  3Q15

 

1.6.Shareholders’ Equity and Regulatory Capital

 

Shareholders’ equity at the end of 3Q15 was COP 19,311 billion, increasing 6.8% or COP 1.225 billion, with respect to the COP 18,085 billion reported at the end of 2Q15.

 

Bancolombia’s capital adequacy ratio was 13.2% in 3Q15. This figure highlights the company’s solid capital position.

 

Bancolombia’s capital adequacy ratio was 416 basis points above the minimum 9% required by Colombia’s regulator, while the basic capital ratio (Tier 1) to risk weighted assets was 7.95%, 345 basis points above the regulatory minimum of 4.5%. The tangible capital ratio, defined as shareholders’ equity minus goodwill and intangible assets divided by tangible assets, was 7.9% at the end of 3Q15.

 

TECHNICAL CAPITAL RISK
WEIGHTED ASSETS		                 
Consolidated (COP millions)  1Q15   %   2Q15   %   3Q15   % 
Basic capital (Tier I)   11,367,295    8.57%   11,020,242    8.16%   11,998,961    7.95%
Additional capital (Tier II)   7,487,984    5.64%   7,425,582    5.50%   7,967,587    5.28%
Technical capital (1)   18,855,278         18,445,824         19,966,548      
Risk weighted assets included market risk   132,687,996         135,079,386         146,199,509      
CAPITAL ADEQUACY (2)        14.21%        13.66%        13.23%

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

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

 

 5

 

 

   
   
  3Q15

 

2.INCOME STATEMENT

 

Net income totaled COP 541 billion in 3Q15, or COP 544.9 per share - USD 0.71 per ADR (excluding discontinued operations). This net income represents a decrease of 22.1% compared to 2Q15 and of 3.6% compared to 3Q14. Bancolombia’s annualized ROE for 3Q15 was 11.2%.

 

2.1.Net Interest Income

 

Net interest income totaled COP 1,750 billion in 3Q15, 1.4% less than that reported in 2Q15, and 31.4% higher than the figure for 3Q14. The positive annual performance of this line was driven by a higher demand in loan volumes and the depreciation of the COP versus the USD. However, quarterly performance can be explained by a contraction in the net interest margin due to greater funding costs.

 

During 3Q15, the investment, interest rate derivatives and repos portfolio generated COP 50.2 billion.

 

Net Interest Margin

 

The annualized net interest margin decreased to 4.9% in 3Q15, largely explained by the depreciated debt securities in Colombia and higher funding costs.

 

The annualized net interest margin for investments was -1.3%, lower than the -0.5% of 2Q15 and the annualized net interest margin of the loan portfolio was 5.5%, which is lower than the 6.0% in 2Q15.

 

Annualized Interest            
Margin  3Q14   2Q15   3Q15 
Loans' Interest margin   5.5%   6.0%   5.5%
Debt investments' margin   -1.2%   -0.5%   -1.3%
Net interest margin   4.8%   5.4%   4.9%

 

 

The funding cost increased during 3Q15 and increased slightly due to the gradual reduction of liquidity in the Colombian economy. Savings and checking accounts remained the same as a proportion of the total cost of funding presented last quarter (“2Q15”), and the annualized average weighted cost of deposits was 2.4% in 3Q15, increasing 0.04% compared to 2Q15.

 

Average weighted            
funding cost  3Q14   2Q15   3Q15 
Checking accounts   0.00%   0.00%   0.00%
Saving accounts   1.45%   1.35%   1.36%
Time deposits   4.18%   4.38%   4.41%
Total deposits   2.28%   2.33%   2.37%
Long term debt   6.27%   6.52%   6.84%
Loans with banks   3.12%   2.40%   2.92%
Total funding cost   2.83%   2.79%   2.98%

 

 6

 

 

   
   
  3Q15

 

2.2.Fees and Income from Services

 

In the 3Q15, certain accounts were reclassified as Fees, since they were previously included in the “Other Income” and “Other Expenses” lines.

 

During 3Q15, net fees and income from services totaled COP 513 billion, increasing 4.4% with respect to 2Q15 and increasing 19.5% with respect to 3Q14. Fees from credit and debit cards shrunk 0.4% compared to 2Q15 due to a reduction in the volume of transactions. Fees from asset management and trust services increased 2.4% in 2Q15 and 31.8% compared to 3Q14. Fees from our bancassurance business dropped 12.7% compared to 2Q15, but grew 18.5% in respect to 3Q15.

 

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

 

ACCUMULATED CREDIT CARD
BILLING		  %   2015 
(COP millions)  Aug-14   Aug-15   Growth   Market Share 
Bancolombia VISA   1,990,554    2,471,608    24.17%   8.15%
Bancolombia Mastercard   2,465,070    2,849,324    15.59%   9.40%
Bancolombia American Express   2,674,598    2,725,046    1.89%   8.99%
Total Bancolombia   7,130,222    8,045,979    12.84%   26.53%
Colombian Credit Card Market   26,753,295    30,323,055    13.34%     

 

CREDIT CARD MARKET SHARE  %   2015 
(Outstanding credit cards)  Aug-14   Aug-15   Growth   Market Share 
Bancolombia VISA   477,296    552,817    15.82%   5.34%
Bancolombia Mastercard   622,223    711,585    14.36%   6.87%
Bancolombia American Express   698,338    675,772    -3.23%   6.53%
Total Bancolombia   1,797,857    1,940,174    7.92%   18.74%
Colombian Credit Card Market   9,694,995    10,355,217    6.81%     

Source: Superintendencia Financiera de Colombia

 

2.3.Other Operating Income

 

Total other operating income was COP 204 billion in 3Q15, growing by 17.0% compared to 2Q15, and by 72.7% with respect to 3Q14.

 

Revenues aggregated in the operating leases line totaled COP 128 billion in 3Q15, and increased by 37% compared to 2Q15 and increased by 69% compared to those reported in 3Q14.

 

2.4.Asset Quality, Provision Charges and Balance Sheet Strength

 

Past due loans (those that are overdue for more than 30 days) totaled COP 3,930 billion at the end of 3Q15 and represented 3.1% of total gross loans, showing a slight decrease compared to 2Q15. Charge-offs totaled COP 254 billion in 3Q15.

 

The coverage, measured by the ratio of allowances for loans losses (principal) to PDLs (overdue 30 days), was 118.7% at the end of 3Q15, remaining the same as in 2Q15. Likewise, the coverage measured by the ratio of allowances for loans losses to loans classified as C, D and E, was 96.4% at the end of 3Q15, decreasing with respect to the 98.6% reported in 2Q15.

 

The deterioration of the loan portfolio (new past due loans including charge-offs) was COP 581 billion in 2Q15, which represented 0.4% of the loan portfolio at the beginning of the quarter.

 

 7

 

 

   
   
  3Q15

 

Provision charges (net of recoveries) totaled COP 491 billion in 3Q15. Provisions as a percentage of the average gross loans were 1.5% for 3Q15.

 

Bancolombia maintains a strong balance sheet supported on an adequate level of loan loss reserves. Allowances for loan losses totaled COP 4,665 billion, or 3.6% of total loans at the end of 3Q15. This proportion decreased in comparison to the 3.7% presented at the end of 2Q15.

 

The following tables present key metrics related to asset quality:

 

ASSET QUALITY  As of 
( COP millions)  2Q15   3Q 15 
Total 30-day past due loans   3,604,672    3,930,436 
Allowance for loan losses (1)   4,278,441    4,664,533 
Past due loans to total loans   3.11%   3.06%
“C”, “D” and “E” loans as a percentage of total loans   3.74%   3.77%
Allowances to past due loans   118.69%   118.68%
Allowance for loan  losses as a percentage of “C”, “D” and “E” loans   98.61%   96.38%
Allowance for loan losses as a percentage of total loans   3.69%   3.64%

 

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

 

       30 days 
PDL Per Category  % Of loan Portfolio   2Q15   3Q15 
Commercial loans   71.5%   1.90%   1.97%
Consumer loans   14.9%   4.50%   4.35%
Microcredit   0.6%   8.57%   7.75%
Mortgage loans   13.0%   6.70%   6.24%
PDL TOTAL        3.10%   3.06%

 

       90 days 
PDL Per Category  % Of loan Portfolio   2Q15   3Q15 
Commercial loans   71.5%   1.40%   1.48%
Consumer loans   14.9%   2.30%   2.17%
Microcredit   0.6%   5.55%   5.02%
Mortgage loans   13.0%   3.20%   2.82%
PDL TOTAL        1.80%   1.78%

 

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

 

LOANS AND FINANCIAL LEASES CLASSIFICATION        
( COP millions)  2Q15   3Q15 
¨A¨ Normal   109,931,387    90.68%   121,056,530    90.66%
¨B¨ Subnormal   6,648,655    5.48%   7,297,978    5.47%
¨C¨ Deficient   1,943,792    1.60%   2,335,232    1.75%
¨D¨ Doubtful recovery   1,737,578    1.43%   1,708,436    1.28%
¨E¨ Unrecoverable   963,629    0.81%   1,124,041    0.84%
Total   121,225,041    100.00%   133,522,217    100.00%
Loans and financial leases classified as C, D and E as a percentage of total loans and financial leases   3.84%        3.87%     

 

 8

 

 

   
   
  3Q15

 

2.5.Operating Expenses

 

During 3Q15, operating expenses totaled COP 1,408 billion, increasing 11.0% with respect to 2Q15 and increasing 26.5% with respect to 3Q14.

 

Personnel expenses (salaries, bonus plan payments and compensation) totaled COP 589 billion in 3Q15, increasing 7.7% compared to 2Q15 and increasing 36.1 % compared to 3Q14.

 

During 3Q15, administrative expenses totaled COP 562 billion, increasing 12.9% compared to 2Q15 and increasing 16.9% as compared to 2Q14.

 

Depreciation and amortization expenses totaled COP 134 billion in 3Q15, increasing 28.1% compared to 2Q15 and 21.4% compared to 3Q14.

 

As of September 30, 2015, Bancolombia had 30,526 employees, and owned 1,069 branches and 4,696 ATMs.

 

 9

 

 

   
   
  3Q15

 

3.RECENT DEVELOPMENTS

 

On September 11, 2015 Bancolombia S.A (“Bancolombia”) announced that its subsidiary, Bancolombia Panama S.A., had signed an agreement with BAM Financial Corporation (“BFC”) for the acquisition of an additional 20% of the common stock, which will represent a controlling stake of 60% in Grupo Agromercantil Holding S.A. (“GAH”), a Panamanian company that owns the Conglomerado Financiero Agromercantil of Guatemala, which includes Banco Agromercantil of Guatemala (“BAM”).

 

The purchase price will be determined at closing pursuant to the methodology established in the initial agreements, and will be based on the audited consolidated financial statements of GAH as of December 31, 2015.

 

The acquisition is subject to certain conditions, including receipt of the required regulatory approvals. The transaction is aligned with Grupo Bancolombia’s strategic interest in the Guatemalan financial services business and develops the shareholders agreement disclosed to the market in 2012.

 

 10

 

 

   
   
  3Q15

 

4.BANCOLOMBIA Company Description (NYSE: CIB)

 

GRUPO BANCOLOMBIA is a full service financial conglomerate incorporated in Colombia that offers a wide range of banking products and services to a diversified individual and corporate customer base of more than 9 million customers. GRUPO BANCOLOMBIA delivers its products and services via its regional network comprised of: Colombia’s largest non-government owned banking network, El Salvador’s leading financial conglomerate (Banagricola S.A.), off-shore and local (Banistmo S.A.) banking subsidiaries in Panama, Cayman and Puerto Rico. Together, BANCOLOMBIA and its subsidiaries provide stock brokerage, investment banking, leasing, factoring, consumer finance, fiduciary and trust services, asset management, among others.

 

Contact Information

 

Bancolombia’s Investor Relations

Phone: (574) 4041837 / (574) 4041838

E-mail: investorrelations@bancolombia.com.co

Alejandro Mejia (IR Manager) / Camilo Arbelaez (Analyst)

Website: http://www.grupobancolombia.com/investorRelations/

 

 11

 

 

   
   
  3Q15

 

BALANCE SHEET              Growth         
(COP million)  Sep-14   Jun-15   Sep-15   Sep -15 /
Jun -15		   Sep -15 /
Sep -15		   % of
Assets		   % of
Liabilities		 
ASSETS                                   
Cash and balances at central bank   9,792,519    10,771,960    12,131,755    12.62%   23.89%   6.94%     
Interbank borrowings   2,048,988    1,087,203    1,408,283    29.53%   -31.27%   0.81%     
Reverse repurchase agreements and other similar secured lend   742,845    1,236,053    1,124,212    -9.05%   51.34%   0.64%     
Investments   12,437,467    12,774,812    12,986,738    1.66%   4.42%   7.43%     
Derivative financial instruments - Assets   609,010    1,354,933    2,567,591    89.50%   321.60%   1.47%     
Loans and advances to customers   102,508,045    121,202,514    133,497,804    10.14%   30.23%   76.34%     
Allowance for loan and lease losses   (4,499,400)   (4,631,361)   (5,011,502)   8.21%   11.38%   -2.87%     
Investment in associates and joint ventures   968,891    1,300,574    1,442,530    10.91%   48.88%   0.82%     
Goodwill and Intangible assets   3,970,392    4,933,553    5,729,720    16.14%   44.31%   3.28%     
Premises and equipment   2,307,331    2,694,491    2,792,387    3.63%   21.02%   1.60%     
Investment property   1,042,828    1,261,018    1,325,371    5.10%   27.09%   0.76%     
Prepayments   148,481    230,391    246,390    6.94%   65.94%   0.14%     
Tax receivables   147,699    727,901    909,157    24.90%   515.55%   0.52%     
Deferred tax   526,294    459,257    546,625    19.02%   3.86%   0.31%     
Assets held for sale   253,593    93,112    138,980    49.26%   -45.20%   0.08%     
Other assets   1,089,370    1,135,511    1,276,832    12.45%   17.21%   0.73%     
Discontinued operations (Assets)   1,704,397    1,631,406    1,762,500    8.04%   3.41%   1.01%     
Total assets   135,798,750    158,263,328    174,875,373    10.50%   28.78%   100.00%     
LIABILITIES AND SHAREHOLDERS' EQUITY                                   
LIABILITIES                                   
Deposit by customers   85,078,290    97,208,199    108,933,191    12.06%   28.04%   62.29%   70.27%
Interbank Deposits   430,167    332,329    435,600    31.07%   1.26%   0.25%   0.28%
Derivative financial instrument - Liabilities   493,078    1,106,328    2,169,788    96.13%   340.05%   1.24%   1.40%
Borrowings from other financial institutions   11,475,098    14,828,979    15,747,805    6.20%   37.23%   9.01%   10.16%
Debt securities in issue   12,472,151    15,127,037    18,219,495    20.44%   46.08%   10.42%   11.75%
Preferred shares   565,076    551,401    565,979    2.64%   0.16%   0.32%   0.37%
Repurchase agreements and other similar secured borrowing   2,799,023    3,081,701    1,360,278    -55.86%   -51.40%   0.78%   0.88%
Tax liabilities   190,887    324,900    353,619    8.84%   85.25%   0.20%   0.23%
Deferred tax liabilities   580,599    776,156    937,183    20.75%   61.42%   0.54%   0.60%
Employee pension plan   120,325    136,146    139,095    2.17%   15.60%   0.08%   0.09%
Other liabilities   3,754,675    4,771,879    4,630,952    -2.95%   23.34%   2.65%   2.99%
Discontinued operations (Liabilities)   1,479,662    1,417,174    1,531,043    8.03%   3.47%   0.88%     
Total liabilities   119,439,031    139,662,229    155,024,028    11.00%   29.79%   88.65%   100.00%
SHAREHOLDERS' EQUITY                                   
Capital   480,869    480,914    480,914    0.00%   0.01%   0.28%     
Additional paid-in-capital   4,855,804    4,857,454    4,857,454    0.00%   0.03%   2.78%     
Appropriate reserves   5,181,764    6,006,764    6,288,717    4.69%   21.36%   3.60%     
Retained earnings   5,203,204    5,969,300    6,231,534    4.39%   19.76%   3.56%     
Cumulative other comprehensive income   160,453    770,900    1,452,268    88.39%   805.10%   0.83%     
Stockholders’ equity attributable the owners of the parent company   15,882,094    18,085,332    19,310,887    6.78%   21.59%   11.04%     
Non-controlling interest   477,625    515,767    540,458    4.79%   13.16%   0.31%     
Total liabilities and stockholders' equity   135,798,750    158,263,328    174,875,373    10.50%   28.78%   100.00%     

 

 12

 

 

   
   
  3Q15

 

INCOME STATEMENT  As of   Growth               Growth 
(COP million)  Sep-14   Sep-15   Sep-15/Sep-14   3Q14   2Q15   3Q15   3Q15/2Q15   3Q15/3Q14 
Interest income and expenses                                        
Interest on loans                                        
Commercial   3,012,806    3,963,164    31.54%   993,605    1,285,865    1,414,126    9.97%   42.32%
Consumer   1,453,526    1,716,013    18.06%   481,983    575,086    601,018    4.51%   24.70%
Small business loans   96,937    137,949    42.31%   32,109    45,534    49,589    8.91%   54.44%
Mortgage   882,966    997,382    12.96%   276,813    354,635    319,544    -9.89%   15.44%
Leasing   853,947    1,133,512    32.74%   296,657    383,957    373,097    -2.83%   25.77%
Total Interest on loans   6,300,182    7,948,020    26.16%   2,081,167    2,645,077    2,757,374    4.25%   32.49%
Overnight and market funds   9,598    9,634    0.38%   3,315    3,389    3,442    1.56%   3.83%
Investment                                        
Debt investments, net   22,397    48,616    117.06%   6,419    10,839    25,298    133.40%   294.11%
Net gains from investment activities at fair value through income statement                                        
Debt investments   267,720    222,871    -16.75%   22,479    82,556    1,438    -98.26%   -93.60%
Derivatives   (90,606)   49,555    154.69%   (29,214)   4,662    64,181    1276.68%   319.69%
Repos   136,250    (65,776)   -148.28%   45,523    (24,017)   (19,184)   -20.12%   -142.14%
Others   (5,010)   (31,306)   524.87%   5,137    (6,416)   (21,530)   235.57%   -519.12%
Total Net gains from investment activities at fair value through income statement   308,354    175,344    -43.14%   43,925    56,785    24,905    -56.14%   -43.30%
Total interest on investment securities   330,751    223,960    -32.29%   50,344    67,624    50,203    -25.76%   -0.28%
Total interest income   6,640,531    8,181,614    23.21%   2,134,826    2,716,090    2,811,019    3.50%   31.67%
Interest expense                                        
Borrowing costs   (272,322)   (321,741)   18.15%   (77,655)   (94,748)   (125,199)   32.14%   61.22%
Overnight funds   (1,371)   (5,997)   337.42%   (427)   (1,730)   (2,137)   23.53%   400.47%
Debt securities in issue   (560,870)   (758,207)   35.18%   (189,738)   (241,096)   (285,114)   18.26%   50.27%
Deposits   (1,398,945)   (1,703,811)   21.79%   (479,842)   (565,115)   (614,015)   8.65%   27.96%
Other interest (expense)   (109,178)   (105,299)   -3.55%   (53,759)   (38,326)   (34,911)   -8.91%   -35.06%
Total interest expense   (2,342,686)   (2,895,055)   23.58%   (801,421)   (941,015)   (1,061,376)   12.79%   32.44%
Net interest income   4,297,845    5,286,559    23.00%   1,333,405    1,775,075    1,749,643    -1.43%   31.22%
Loan loss provisions   (900,921)   (1,302,881)   44.62%   (308,019)   (440,013)   (533,941)   21.35%   73.35%
Recovery of charged-off loans   110,581    158,745    43.56%   38,089    70,780    58,857    -16.85%   54.52%
Other assets impairment   (35,817)   (71,369)   99.26%   (3,458)   (43,945)   (15,950)   -63.70%   361.25%
Total net provisions   (826,157)   (1,215,505)   47.13%   (273,388)   (413,178)   (491,034)   18.84%   79.61%
Net interest income after provision, net   3,471,688    4,071,054    17.26%   1,060,017    1,361,897    1,258,609    -7.58%   18.73%
Fees and other service income                                        
Banking services   489,131    455,381    -6.90%   166,481    119,194    163,197    36.92%   -1.97%
Credit and debit card fees   313,338    399,735    27.57%   106,060    136,881    136,157    -0.53%   28.38%
Electronic services and ATM fees   250,370    346,243    38.29%   88,069    130,184    124,965    -4.01%   41.89%
Brokerage   18,474    18,252    -1.20%   7,097    6,805    6,711    -1.38%   -5.44%
Acceptances, Guarantees and Standby letters of credits   39,821    33,452    -15.99%   14,610    10,659    11,502    7.91%   -21.27%
Trust   151,473    197,922    30.66%   50,894    65,527    67,099    2.40%   31.84%
Bancassurance   150,318    182,335    21.30%   50,645    68,782    60,037    -12.71%   18.54%
Payments and Collections   132,756    147,969    11.46%   47,076    49,774    51,767    4.00%   9.96%
Others   235,180    259,372    10.29%   57,178    91,233    100,222    9.85%   75.28%
Total Fees and other service income   1,780,861    2,040,661    14.59%   588,110    679,039    721,657    6.28%   22.71%
Fees and other service expenses                                        
Banking services   (159,063)   (215,906)   35.74%   (53,266)   (74,479)   (80,994)   8.75%   52.06%
Others   (290,926)   (337,410)   15.98%   (105,642)   (112,362)   (128,680)   14.52%   21.81%
Total Fees and other service expenses   (449,989)   (553,316)   22.96%   (158,908)   (187,703)   (208,812)   11.25%   31.40%
Total fees and income from services, net   1,330,872    1,487,345    11.76%   429,202    491,336    512,845    4.38%   19.49%
Other operating income                                        
Derivatives FX contracts   (26,897)   189,522    804.62%   (66,164)   51,335    88,798    72.98%   234.21%
Net foreign exchange   189,414    92,276    -51.28%   112,093    35,801    2,266    -93.67%   -97.98%
Hedging   (15,699)   (19,678)   25.35%   (1,938)   1,505    (13,296)   -983.46%   586.07%
Operating leases   260,797    323,584    24.08%   75,641    93,349    127,684    36.78%   68.80%
Gains (or losses) on sale of assets   (3,068)   4,373    242.54%   (1,548)   (8,255)   (1,875)   -77.29%   21.12%
Other reversals   8,051    2,283    -71.64%   104    670    547    -18.36%   425.96%
Total other operating income   412,598    592,360    43.57%   118,188    174,405    204,124    17.04%   72.71%
Dividends received and equity method                                        
Dividends   38,372    20,717    -46.01%   2,956    10,242    508    -95.04%   -82.81%
Equity investments   36,573    51,387    40.51%   25,722    47,325    (6,141)   -112.98%   -123.87%
Equity method   103,128    57,285    -44.45%   35,969    18,212    5,346    -70.65%   -85.14%
Gains (Losses) on sale of Discontinued Operations   -    (14,203)   0.00%   -    -    (14,203)   0.00%   0.00%
Total Dividends received and equity method   178,073    115,186    -35.32%   64,647    75,779    (14,490)   -119.12%   -122.41%
Total income   5,393,231    6,265,945    16.18%   1,672,054    2,103,417    1,961,088    -6.77%   17.29%

 

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  3Q15

 

INCOME STATEMENT  As of   Growth               Growth 
(COP million)  Sep-14   Sep-15   Sep-15/Sep-14   3Q14   2Q15   3Q15   3Q15/2Q15   3Q15/3Q14 
Operating expenses                                        
Salaries and employee benefits   (1,191,644)   (1,414,949)   18.74%   (390,966)   (464,713)   (486,212)   4.63%   24.36%
Bonuses   (142,786)   (237,550)   66.37%   (41,960)   (82,042)   (102,836)   25.35%   145.08%
Administration and general expenses   (1,393,735)   (1,569,406)   12.60%   (480,617)   (497,760)   (562,020)   12.91%   16.94%
Contributions and other tax burden   (305,759)   (350,811)   14.73%   (89,162)   (118,604)   (122,577)   3.35%   37.48%
Depreciation and amortization   (312,884)   (343,534)   9.80%   (110,448)   (104,650)   (134,099)   28.14%   21.41%
Total operating expenses   (3,346,808)   (3,916,250)   17.01%   (1,113,153)   (1,267,769)   (1,407,744)   11.04%   26.46%
Net operating income   2,046,423    2,349,695    14.82%   558,901    835,648    553,344    -33.78%   -0.99%
Other income (expenses)                                        
Other income   442,933    402,671    -9.09%   143,970    136,440    121,415    -11.01%   -15.67%
Other expenses   (203,612)   (173,389)   -14.84%   (74,380)   (74,168)   (56,920)   -23.26%   -23.47%
Total other income (expenses)   239,321    229,282    -4.19%   69,590    62,272    64,495    3.57%   -7.32%
Profit before tax   2,285,744    2,578,977    12.83%   628,491    897,920    617,839    -31.19%   -1.69%
Income tax   (520,147)   (550,346)   5.81%   (96,966)   (203,336)   (82,454)   -59.45%   -14.97%
Tax on wealth   -    (159,963)   0.00%   -    -    -    0.00%   0.00%
Net income before non-controlling interest   1,765,597    1,868,668    5.84%   531,525    694,584    535,385    -22.92%   0.73%
Non-controlling interest   (22,520)   (44,256)   96.52%   3,807    (9,187)   (11,297)   22.97%   -396.74%
Net income before Descontinued Operations   1,743,077    1,824,412    4.67%   535,332    685,397    524,088    -23.54%   -2.10%
Discontinued Operations Net Income   51,869    38,126    -26.50%   26,360    9,585    17,226    79.72%   -34.65%
Net income   1,794,946    1,862,538    3.77%   561,692    694,982    541,314    -22.11%   -3.63%

 

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SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  BANCOLOMBIA S.A.
(Registrant)
   
Date:  November 12, 2015  By:   /s/  JAIME ALBERTO VELÁSQUEZ B. 
    Name:   Jaime Alberto Velásquez B.
    Title:   Vice President of Strategy and Finance