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 February, 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 x                    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 ¨                    No x

 

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

 

 
 

 

   

4Q14

 

BANCOLOMBIA S.A. (NYSE: CIB; BVC: BCOLOMBIA, PFBCOLOM) REPORTS CONSOLIDATED NET INCOME OF COP 1,879 BILLION FOR 2014, AN INCREASE OF 24% COMPARED TO 2013.

 

·Operating income increased 23.8% during 2014 and 15.7% during the quarter driven by the higher net interest income, which increased 21.9% during the year, and the higher fees. The factors that contributed to this performance were the increase in the loan portfolio, the expansion of the net interest margin and the higher volume of transactions.

 

·Fees increased 16.7% during 2014 and 4.1% during 4Q14. Net income from fees grew mainly driven by a greater number of credit and debit cards, banking services and by the distribution of insurance products through the bank’s network.

 

·Cost of credit (provision charges as a percentage of average gross loans) decreased to 1.47% in 2014 from 1.59% in 2013. Past due loans as a percentage of total gross loans were 2.9% on a 30-day basis and 1.6% on a 90-day basis. Net provision charges for past due loans and foreclosed assets totaled COP 378 billion.

 

·The bank showed a sustained growth in the loan portfolio during 4Q14. Bancolombia’s loan portfolio grew 11.1% during the quarter and 20.4% during the last twelve months. 8.5% of the annual growth was explained by the depreciation of the COP against the USD.

 

·The balance sheet remains strong. Loan loss reserves represented 4.4% of total gross loans and 154.5% of 30-day past due loans at the end of 4Q14 or 274.5% of 90-day past due loans. The capital adequacy ratio ended the quarter at 13.3% with a Tier 1 of 7.7%. These ratios indicate that Bancolombia has enough reserves and capital to maintain its operation and develop its business plan.

 

·The bank maintained its liquidity position and the funding cost remained at low levels. The annualized average weighted cost of deposits was 2.2% in 4Q14, decreasing compared with the 2.3% of 3Q14 and the 2.6% for 4Q13. Deposits increased 10.6% during the quarter and 10.1% compared to 4Q13, and the ratio of net loans to deposits ended at 103.2%. This annual growth in deposits was explained, 7.1% by the depreciation of the COP against the USD.

 

February 17, 2015. Medellín, Colombia – Today, BANCOLOMBIA S.A. (“Bancolombia” or “the Bank”) announced its earnings results for the fourth quarter of 20141.

 

For the quarter ended on December 31, 2014 (“4Q14”), Bancolombia reported consolidated net income of COP 488 billion, or COP 507 per share - USD 0.85 per ADR. Net income represents an increase of 17% as compared to the results for the quarter ended on September 30, 2014 (“3Q14”) and remains stable compared to the results for the quarter ended on December 31, 2013 (“4Q13”).

 

Bancolombia ended 4Q14 with COP 148,725 billion in assets, 9.8% greater than those at the end of 3Q14 and 13.7% greater than those at the end of 4Q13. At the same time, liabilities totaled COP 131,908 billion, increasing 10.3% as compared to the figure presented in 3Q14 and 11.5% as compared to 4Q13.

 

 

 

1This report corresponds to the consolidated financial statements of BANCOLOMBIA S.A. and its affiliates (“BANCOLOMBIA” or “The Bank”) of which it owns, directly or indirectly more than 50% of the voting capital stock. These financial statements have been prepared in accordance with generally accepted accounting principles in Colombia and the regulations of Superintendencia Financiera de Colombia, collectively COL GAAP. BANCOLOMBIA maintains accounting records in Colombian pesos, referred to herein as “Ps.” or “COP”. Certain monetary amounts, percentages and other figures included in this report have been subject to rounding adjustments. There have been no changes to the Bank's principal accounting policies in the quarter ended December 31, 2014. The statements of income for the quarter ended December 31, 2014 are not necessarily indicative of the results for any other future interim period. For more information, please refer to the Bank's filings with the Securities and Exchange Commission, which are available on the Commission's website at www.sec.gov.

 

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS: This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties; consequently, there are or will be factors, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products by other companies, lack of acceptances of new products or services by our targeted customers, changes in business strategy and various others factors, that could cause actual results to differ materially from those indicated in such statements. We do not intend, and do not assume any obligation, to update these forward-looking statements. Certain monetary amounts, percentages and other figures included in this report have been subject to rounding adjustments. Any reference to BANCOLOMBIA means the Bank together with its affiliates, unless otherwise specified.

Representative Market Rate January 1, 2015 $2,392.46 = US$ 1

  

1
 

  

   

4Q14

 

BANCOLOMBIA: Summary of consolidated financial quarterly results2

CONSOLIDATED BALANCE SHEET            
AND INCOME STATEMENT  Quarter   Growth 
(COP millions)  4Q13   3Q14   4Q14   4Q14/3Q14   4Q14/4Q13 
ASSETS                         
Loans and financial leases, net   85,394,012    92,507,172    102,803,374    11.13%   20.39%
Investment securities, net   13,805,790    13,185,442    13,677,801    3.73%   -0.93%
Other assets   31,616,439    29,815,456    32,243,686    8.14%   1.98%
Total assets   130,816,241    135,508,070    148,724,861    9.75%   13.69%
                          
LIABILITIES AND SHAREHOLDERS' EQUITY                         
Deposits   86,556,579    86,218,658    95,337,222    10.58%   10.14%
Non-interest bearing   14,680,487    13,089,813    15,984,894    22.12%   8.89%
Interest bearing   71,876,092    73,128,845    79,352,328    8.51%   10.40%
Other liabilities   31,766,816    33,323,166    36,570,285    9.74%   15.12%
Total liabilities   118,323,395    119,541,824    131,907,507    10.34%   11.48%
Shareholders' equity   12,492,846    15,966,246    16,817,354    5.33%   34.62%
Total liabilities and shareholders' equity   130,816,241    135,508,070    148,724,861    9.75%   13.69%
                          
Interest income   2,151,683    2,298,607    2,564,155    11.55%   19.17%
Interest expense   803,137    814,948    877,588    7.69%   9.27%
Net interest income   1,348,546    1,483,659    1,686,567    13.68%   25.07%
Net provisions   (272,919)   (384,219)   (378,102)   -1.59%   38.54%
Fees and income from service, net   525,018    564,911    587,983    4.08%   11.99%
Other operating income   257,790    279,302    352,437    26.18%   36.71%
Total operating expense   (1,207,369)   (1,240,468)   (1,501,420)   21.04%   24.35%
Goodwill amortization   (38,335)   (51,519)   (242,073)   369.87%   531.47%
Non-operating income, net   20,061    (75,439)   24,420    132.37%   21.73%
Income tax expense   (144,052)   (160,711)   (42,242)   -73.72%   -70.68%
Net income   488,740    415,516    487,570    17.34%   -0.24%

 

PRINCIPAL RATIOS  Quarter   As of 
   4Q13   3Q14   4Q14   Dec-13   Dec-14 
PROFITABILITY                         
Net interest margin (1)   5.33%   5.58%   5.91%   5.48%   5.66%
Return on average total assets (2)   1.56%   1.26%   1.38%   1.37%   1.40%
Return on average shareholders´ equity (3)   15.97%   10.62%   11.93%   12.76%   12.50%
EFFICIENCY                         
Operating expenses to net operating income   58.45%   55.50%   66.37%   59.75%   58.59%
Operating expenses to average total assets   3.99%   3.92%   4.93%   4.19%   4.16%
CAPITAL ADEQUACY                         
Shareholders' equity to total assets   9.55%   11.78%   11.31%   9.55%   11.31%
Technical capital to risk weighted assets   10.61%   13.94%   13.29%   10.61%   13.29%
KEY FINANCIAL HIGHLIGHTS                         
Net income per ADS (USD)   1.19    0.85    0.85           
Net income per share $COP   573.75    432.01    506.92           
P/BV ADS (4)   1.61    1.73    1.64           
P/BV Local (5) (6)   1.62    1.67    1.58           
P/E  (7)   10.34    16.29    13.86           
ADR price  (8)   49.02    56.72    47.88           
Common share price  (8)   23,820    27,680    27,640           
Shares outstanding  (9)   851,827,000    961,827,000    961,827,000           
USD exchange rate (quarter end)   1,926.83    2,022.00    2,392.46           

 

 

(1) Defined as net interest income divided by monthly average interest-earning assets. (2) Net income divided by monthly average assets. (3) Net income divided by monthly average shareholders' equity. (4) Defined as ADS price divided by ADS book value. (5) Defined as share price divided by share book value. (6) Share prices on the Colombian Stock Exchange; (7) Defined as market capitalization divided by annualized quarter results. (8) Prices at the end of the respective quarter. (9) Common and preferred.

 

2
 

  

   

4Q14

 

1.BALANCE SHEET

 

1.1.Assets

 

As of December 31, 2014, Bancolombia’s assets totaled COP 148,725 billion, which represents an increase of 9.8% compared to 3Q14 and of 13.7% compared to 4Q13. The annual growth was explained, 9% by the depreciation of the peso against the dollar.

 

The increase in assets in the quarter and in the year was explained by a depreciation of the COP versus the USD (18.3% during the quarter and 24% during the year) and by the organic growth of the loan portfolio.

 

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 = 2392.46 COP)      4Q14/3Q14   4Q14/4Q13       4Q14/3Q14   4Q14/4Q13       4Q14/3Q14   4Q14/4Q13       4Q14/3Q14   4Q14/4Q13 
Net investment securities   9,778,101    2.22%   -2.81%   3,899,700    7.73%   4.12%   1,629,996    -8.95%   -16.14%   13,677,801    3.73%   -0.93%
Gross Loans   69,609,767    5.37%   13.14%   37,943,780    22.75%   35.85%   15,859,734    3.74%   9.41%   107,553,547    10.91%   20.23%
Commercial loans   38,851,753    5.93%   14.98%   25,627,449    25.03%   37.97%   10,711,757    5.67%   11.12%   64,479,202    12.78%   23.14%
Consumer loans   12,844,406    4.56%   6.37%   5,810,395    19.08%   28.35%   2,428,628    0.64%   3.37%   18,654,801    8.69%   12.37%
Small  business loans   495,664    6.51%   26.67%   152,864    17.87%   21.84%   63,894    -0.38%   -1.87%   648,528    8.99%   25.50%
Mortgage loans   7,518,291    3.96%   13.63%   5,000,693    19.34%   35.90%   2,090,189    0.86%   9.45%   12,518,984    9.60%   21.59%
Finance lease   9,899,653    5.28%   14.36%   1,352,379    11.38%   31.95%   565,267    -5.87%   6.27%   11,252,032    6.0%   16.2%
Allowance for loan losses   (3,951,519)   6.01%   16.48%   (798,654)   8.25%   18.68%   (333,821)   -8.51%   -4.42%   (4,750,173)   6.38%   16.84%
Net total loans and fin. leases   65,658,248    5.33%   12.94%   37,145,126    23.11%   36.27%   15,525,913    4.04%   9.75%   102,803,374    11.13%   20.39%
Operating leases, net   3,398,840    2.85%   20.30%   112,464    13.13%   19.72%   47,008    -4.38%   -3.58%   3,511,304    3.15%   20.28%
Total assets   88,285,392    3.92%   -0.65%   60,439,469    19.56%   44.06%   25,262,478    1.05%   16.02%   148,724,861    9.75%   13.69%
Total deposits   63,713,150    8.01%   0.97%   31,624,072    16.13%   34.83%   13,218,224    -1.85%   8.59%   95,337,222    10.58%   10.14%
Total liabilities   73,470,455    4.27%   -5.26%   58,437,052    19.07%   43.35%   24,425,508    0.63%   15.45%   131,907,507    10.34%   11.48%

 

The most relevant aspects regarding the evolution of the loan portfolio during 4Q14 were:

 

·       The growth of commercial, mortgage loans and financial leases in Colombia during 4Q14 indicate a sustained credit demand.

 

·       Net loans in USD correspond to loans originated in Colombia (USD 4,410 million, 28%), El Salvador (USD 2,730 million, 18%), Panama (USD 7,998 million, 52%), and other countries (USD 388 million, 3%). USD denominated loans represented 35% of total loans as of 4Q14.

 

·       COP depreciated 18.3% versus USD during 4Q14 and 24.2% in the last 12 months.

 

·       Mortgage loans denominated in COP presented a dynamic performance, growing 13.6% year on year. The dynamism of mortgage lending in Colombia is explained by the 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 represented 40% of the mortgage loans at the end of 4Q14.

 

·       Financial leases, of which 88% are denominated in COP, increased 6% during the quarter and 16.2% as compared to 4Q13. Operating leases, net of depreciation, increased 3.1% during 4Q14 and 20.3% in the last 12 months. These two products are mainly used by enterprises in order to finance equipment, commercial real estate and commercial vehicles.

 

3
 

  

   

4Q14

 

When analyzing the loan portfolio according to the customer categories established by Bancolombia in order to manage its commercial strategy (see table below), it becomes clear that commercial loans led the growth during 4Q14, as they increased 14.4% with respect to 3Q14. The growth is explained by the credit demand for business investment and the conversion of dollar denominated loans to Colombian pesos. This is the segment that contributes the most to the nominal growth of the total loan book. Consumer and SMEs loans increased by 7.9% when compared with 3Q14, which indicates a sustained credit demand compared with the growth in previous quarters.

 

Total reserves (allowances in the balance sheet) for loan losses increased by 6.4% during 4Q14 and totaled COP 4,750 billion, or 4.4% 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      As of       Growth   % of Total   % of 
(COP million)  Dec-13   Sep-14   Dec-14   4Q14/3Q14   4Q14/4Q13   loans   Category 
CORPORATE                                   
Working capital loans   33,992,771    36,701,603    41,773,117    13.82%   22.89%   38.84%   80.98%
Funded by domestic development banks   489,798    669,552    703,736    5.11%   43.68%   0.65%   1.36%
Trade Financing   6,706,315    7,510,348    8,987,540    19.67%   34.02%   8.36%   17.42%
Overdrafts   80,023    158,869    73,820    -53.53%   -7.75%   0.07%   0.14%
Credit Cards   42,406    50,156    47,321    -5.65%   11.59%   0.04%   0.09%
TOTAL CORPORATE   41,311,313    45,090,528    51,585,534    14.40%   24.87%   47.96%   100.00%
RETAIL AND SMEs                                   
Working capital loans   9,666,234    11,095,140    11,718,999    5.62%   21.24%   10.90%   36.40%
Personal loans   9,573,141    9,818,860    10,916,457    11.18%   14.03%   10.15%   33.91%
Loans funded by   domestic development banks   1,319,245    839,804    811,952    -3.32%   -38.45%   0.75%   2.52%
Credit Cards   4,548,670    4,849,751    5,194,375    7.11%   14.20%   4.83%   16.13%
Overdrafts   251,724    330,077    259,259    -21.45%   2.99%   0.24%   0.81%
Automobile loans   2,577,704    2,653,184    2,747,486    3.55%   6.59%   2.55%   8.53%
Trade Financing   234,145    255,488    548,469    114.68%   134.24%   0.51%   1.70%
TOTAL RETAIL AND SMEs   28,170,863    29,842,304    32,196,997    7.89%   14.29%   29.94%   100.00%
MORTGAGE   10,295,930    11,422,568    12,518,984    9.60%   21.59%   11.64%   100.00%
FINANCIAL LEASES   9,681,436    10,617,078    11,252,032    5.98%   16.22%   10.46%   100.00%
Total loans and financial leases   89,459,542    96,972,478    107,553,547    10.91%   20.23%   100.00%   100.00%
Allowance for loan losses   (4,065,530)   (4,465,306)   (4,750,173)   6.38%   16.84%          
Total loans and financial leases, net   85,394,012    92,507,172    102,803,374    11.13%   20.39%          

 

1.3.Investment Portfolio

 

As of December 31, 2014, Bancolombia’s net investment portfolio totaled COP 13,678 billion, 3.7% higher than that reported in 3Q14 and 0.9% lower when compared to that reported in 4Q13. This annual decrease is the result of the bank's strategy to reduce its securities portfolio, which consisted primarily of debt securities, which represented 85.4% of Bancolombia’s total investments and 7.9% of assets at the end of 4Q14. Investments denominated in USD totaled USD 1,630 million and represented 29% of the investment portfolio.

 

Additionally, the Bank had COP 653 billion in net mortgage backed securities, which represented 4.8% of the investment portfolio and give a tax benefit to the bank.

 

At the end of 4Q14, the investments in debt securities had a duration of 19.5 months and a yield to maturity of 4.33%.

 

4
 

  

   

4Q14

 

1.4.Goodwill

 

As of 4Q14, Bancolombia’s goodwill totaled COP 3,971 billion, increasing 10.2% compared to the amount reported in 3Q14 and 10.6% compared to 4Q13. This annual variation is explained by the depreciation of the COP against the USD.

 

In 4Q14, Bancolombia reduced its goodwill amortization period from 20 to 10 years to converge in the financial and fiscal treatment of it. This caused a faster amortization in 4Q14.

 

1.5.Funding

 

As of December 31, 2014, Bancolombia’s liabilities totaled COP 131,908 billion, increasing 10.3% compared to 3Q14 and 11.5% compared to 4Q13. The annual growth was explained, 9.6% by the depreciation of the COP against the USD.

 

Deposits totaled COP 95,337 billion (or 72.3% of liabilities) at the end of 4Q14, increasing 10.6% during the quarter and 10.1% over the last 12 months. The net loans to deposits ratio (including borrowings from domestic development banks) was 103% at the end of 4Q14, increasing compared to the 102% reported in 3Q14, and the 94% reported in 4Q13.

 

Bancolombia´s funding strategy during the quarter was to reduce the most expensive deposits and liabilities while maintaining the liquidity position. This strategy allowed the bank to keep at low levels the cost on deposits during the quarter. The ultimate goal is to defend the net interest margin.

 

Funding mix  4Q13   3Q14   4Q14 
COP Million                        
Checking accounts   16,784,933    15%   15,689,961    14%   18,142,957    15%
Saving accounts   34,649,764    31%   34,319,854    30%   39,175,192    31%
Time deposits   34,058,452    30%   35,322,572    31%   36,628,915    29%
Other deposits   1,063,430    1%   886,271    1%   1,390,158    1%
Long term debt   12,328,275    11%   12,555,127    11%   13,682,855    11%
Loans with banks   13,632,894    12%   14,527,812    13%   15,961,647    13%
Total Funds   112,517,748    100%   113,301,597    100%   124,981,724    100%

 

At the end of 4Q14, Bancolombia had outstanding bonds for USD 3,465 million in international markets and for COP 5,394 billion in local markets. The maturities of these bonds range from 2 to 20 years.

 

5
 

  

   

4Q14

 

1.6.Shareholders’ Equity and Regulatory Capital

 

Shareholders’ equity at the end of 4Q14 was COP 16,817 billion, increasing 34.6% or COP 4,325 billion, with respect to the COP 12,493 billion reported at the end of 4Q13 as a result of the proceeds of the issuance of 110 million shares in March 2014, which totaled COP 2,656 billion, and the appropriation of 2013 earnings.

 

Bancolombia’s capital adequacy ratio was 13.29%, 65 basis points below the 13.94% for 3Q14 and 268 basis points above the 10.61% at the end of 4Q13. The annual increase in this ratio was due to the earnings appropriation of 2013 in the General Shareholders’ Meeting held the 17th of March of 2014 and the issuance of 110 million shares in March, 2014.

 

Bancolombia’s capital adequacy ratio was 429 basis points above the minimum 9% required by Colombia’s regulator, while the basic capital ratio (Tier 1) to risk weighted assets was 7.71%, 321 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 8.5% at the end of 4Q14.

 

TECHNICAL CAPITAL RISK WEIGHTED ASSETS    
Consolidated (COP millions)  4Q13   %   3Q14   %   4Q14   % 
Basic capital (Tier I)   6,207,050    5.81%   9,689,180    8.47%   9,720,425    7.71%
Additional capital (Tier II)   5,124,564    4.80%   6,253,430    5.47%   7,023,258    5.58%
Technical capital (1)   11,331,614         15,942,611         16,743,683      
Risk weighted assets included market risk   106,826,579         114,368,669         126,020,585      
CAPITAL ADEQUACY (2)   10.61%        13.94%        13.29%     

 

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

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

 

6
 

  

   

4Q14

 

2.INCOME STATEMENT

 

Net income totaled COP 488 billion in 4Q14, or COP 506.92 per share - USD 0.85 per ADR. This net income represents an increase of 17.3% compared to 3Q14 and a decrease of 0.2% compared to 4Q13. Bancolombia’s annualized ROE for 2014 was 12.5% and 11.9% for 4Q14.

 

2.1.Net Interest Income

 

Net interest income totaled COP 1,687 billion in 4Q14, 13.7% higher than that reported in 3Q14, and 25.1% higher than the figure for 4Q13. The performance of this line was driven by higher loan volumes and the depreciation of the COP versus the USD.

 

During 4Q14, the investment portfolio generated COP 184 billion, product of the good performance of the Colombian government debt securities.

 

Net Interest Margin

 

The annualized net interest margin expanded in 4Q14 to 5.9%.

 

The annualized net interest margin for investments was 3.2%, higher than the 0% of 3Q14 and the annualized net interest margin of the loan portfolio, financial leases, overnight funds and interbank loans was 6.2%, remaining stable compared to the 6.2% of 3Q14.

 

Annualized Interest                                    
Margin  4Q12   1Q13   2Q13   3Q13   4Q13   1Q14   2Q14   3Q14   4Q14 
Loans' Interest margin   6.9%   6.6%   6.4%   6.2%   6.0%   6.1%   6.3%   6.2%   6.2%
Debt investments' margin   2.9%   8.0%   -5.1%   -0.4%   0.1%   1.8%   0.2%   0.0%   3.2%
Net interest margin   6.3%   6.8%   4.7%   5.3%   5.3%   5.5%   5.6%   5.6%   5.9%

 

The funding cost decreased during 4Q14 and remains low due to the liquidity and the management of the liabilities structure, which reduced the most expensive funding sources. Savings and checking accounts slightly increased their share during the quarter, and the annualized average weighted cost of deposits was 2.2% in 4Q14, decreasing compared to the 2.3% for 3Q14 and the 2.6% for 4Q13.

 

Average weighted            
funding cost  4Q13   3Q14   4Q14 
Checking accounts   0.19%   0.18%   0.17%
Time deposits   4.44%   4.22%   4.17%
Saving accounts   1.77%   1.45%   1.34%
Total deposits   2.55%   2.32%   2.23%
Long term debt   6.09%   6.35%   6.57%
Loans with banks   3.34%   3.91%   4.09%
Total funding cost   3.07%   2.96%   2.95%

 

2.2.Fees and Income from Services

 

During 4Q14, net fees and income from services totaled COP 588 billion, increasing 4.1% with respect to 3Q14 and 12.0% with respect to 4Q13. Fees from credit and debit cards increased 11.9% compared to 3Q14 due to an increase in the volume of transactions. Fees from banking services increased 5.7% compared to 3Q14 and 12.6% compared to 4Q13; this line includes fees from insurance distribution throughout the distribution networks in Colombia and in El Salvador. Fees from asset management and trust services increased 2.4% in 4Q14 compared with the previous quarter.

 

7
 

 

 
4Q14

 

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

 

ACCUMULATED CREDIT CARD BILLING          %   2014 
(COP millions)  Nov-13   Nov-14   Growth   Market Share 
Bancolombia VISA   2,556,818    2,823,434    10.43%   7.49%
Bancolombia Mastercard   3,144,376    3,466,752    10.25%   9.19%
Bancolombia American Express   3,611,014    3,762,098    4.18%   9.98%
Total Bancolombia   9,312,208    10,052,283    7.95%   26.66%
Colombian Credit Card Market   34,141,364    37,710,853    10.46%     

 

CREDIT CARD MARKET SHARE          %   2014 
(Outstanding credit cards)  Nov-13   Nov-14   Growth   Market Share 
Bancolombia VISA   450,755    492,222    9.20%   4.88%
Bancolombia Mastercard   589,214    640,487    8.70%   6.35%
Bancolombia American Express   682,098    706,792    3.62%   7.01%
Total Bancolombia   1,722,067    1,839,501    6.82%   18.25%
Colombian Credit Card Market   9,103,125    10,079,577    10.73%     
Source: Superintendencia Financiera de Colombia

 

2.3.Other Operating Income

 

Total other operating income was COP 352 billion in 4Q14, 26.2% higher than that of 3Q14, and 36.7% higher than in 4Q13. Income from foreign exchange gains and derivatives denominated in foreign currencies increased in the quarter due to the net effect of the active and passive positions the bank had in foreign currency.

 

During 4Q14 the bank received COP 8.9 billion in dividends from companies in which Bancolombia and its subsidiaries have interests, especially from Telered (COP 1.8 billion).

 

Revenues aggregated in the communication, rent and others line totaled COP 153 billion in 4Q14, which is 2.2% higher as compared to 3Q14 and 26.1% higher as compared to those in 4Q13. This line includes revenues from commercial discounts and operating leases payments, which have increased as this product grows.

 

2.4.Asset Quality, Provision Charges and Balance Sheet Strength

 

Past due loans (those that are overdue for more than 30 days) totaled COP 3.075 billion at the end of 4Q14 and represented 2.9% of total gross loans for 4Q14, decreasing compared to the 3.1% reported in 3Q14 and remaining stable compared to the 2.9% reported in 4Q13. Charge-offs totaled COP 285 billion in 4Q14.

 

The coverage, measured by the ratio of allowances for loans losses (principal) to PDLs (overdue 30 days), was 154% at the end of 4Q14, increasing with respect to the 148% of 3Q14 and decreasing with respect to the 157% of 4Q13. Likewise, the coverage measured by the ratio of allowances for loans losses to loans classified as C, D and E, was 111% at the end of 4Q14, decreasing with respect to the 114% reported in 3Q14 and remaining stable compared to the 111% reported in 4Q13.

 

8
 

 

 
4Q14

 

The deterioration of the loan portfolio (new past due loans including charge-offs) was COP 342 billion in 4Q14, which represented 0.4% of the loan portfolio at the beginning of the quarter, decreasing with respect to the COP 404 billion in 3Q14.

 

Provision charges (net of recoveries) totaled COP 378 billion in 4Q14. Provisions as a percentage of the average gross loans were 1.48% for 4Q14.

 

Bancolombia maintains a strong balance sheet supported on an adequate level of loan loss reserves. Allowances for loan losses totaled COP 4,750 billion, or 4.42% of total loans at the end of 4Q14. This proportion decreased with respect to the 4.60% presented at the end of 3Q14, and decreased with respect to the 4.54% for 4Q13.

 

The following tables present key metrics related to asset quality:

 

ASSET QUALITY  As of   Growth 
( COP millions)  Dec-13   Sep-14   Dec-14   4Q14/3Q14   4Q14/4Q13 
Total performing past due loans (1)   967,194    1,091,904    1,072,389    -1.79%   10.88%
Total non-performing past due loans   1,630,027    1,925,794    2,002,347    3.98%   22.84%
Total past due loans   2,597,221    3,017,698    3,074,736    1.89%   18.39%
Allowance for loans interest losses   4,065,530    4,465,306    4,750,173    6.38%   16.84%
Past due loans to total loans   2.90%   3.11%   2.86%          
Non-performing loans as a percentage of total loans   1.82%   1.99%   1.86%          
“C”, “D” and “E” loans as a percentage of total loans   4.11%   4.03%   3.97%          
Allowances to past due loans (2)   156.53%   147.97%   154.49%          
Allowance for loan  losses as a percentage of “C”, “D” and “E” loans (2)   110.54%   114.22%   111.17%          
Allowance for loan losses as a percentage of non-performing loans (2)   249.41%   231.87%   237.23%          
Allowance for loan losses as a percentage of total loans   4.54%   4.60%   4.42%          
Percentage of performing loans to total loans   98.18%   98.01%   98.14%          

(1)     "Performing" past due loans are loans upon which Bancolombia 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.

 

PDL Per Category (30 days)                
   % Of loan Portfolio   4Q13   3Q14   4Q14 
Commercial loans   59.95%   1.75%   1.96%   1.77%
Consumer loans   17.34%   4.73%   4.92%   4.82%
Microcredit   0.60%   9.89%   8.52%   8.50%
Mortgage loans   11.64%   6.22%   6.12%   5.95%
Finance lease   10.46%   2.09%   2.87%   2.11%
PDL TOTAL   100.00%   2.90%   3.11%   2.86%

 

PDL Per Category (90 days)                
   % Of loan Portfolio   4Q13   3Q14   4Q14 
Commercial loans   59.95%   1.13%   1.37%   1.27%
Consumer loans   17.34%   2.30%   2.44%   2.35%
Microcredit   0.60%   6.52%   5.82%   5.46%
Mortgage loans   11.64%   2.39%   2.39%   2.36%
Finance lease   10.46%   1.28%   1.43%   1.28%
TOTAL LOAN PORTFOLIO   100.00%   1.54%   1.72%   1.61%

 

LOANS AND FINANCIAL LEASES CLASSIFICATION  4Q13   3Q14   4Q14 
( COP millions)                    
¨A¨ Normal   82,576,481    92.31%   89,670,299    92.47%   98,588,245    91.66%
¨B¨ Subnormal   3,205,115    3.58%   3,392,671    3.50%   4,692,274    4.36%
¨C¨ Deficient   1,590,505    1.77%   1,551,640    1.59%   1,821,084    1.69%
¨D¨ Doubtful recovery   1,213,257    1.36%   1,392,325    1.44%   1,354,293    1.26%
¨E¨ Unrecoverable   874,184    0.98%   965,543    1.00%   1,097,651    1.02%
Total   89,459,542    100.00%   96,972,478    100.00%   107,553,547    100.00%
    62249473    1    72188142    1    75933288    100.01%
Loans and financial leases classified as C, D and E as a percentage of total loans and financial leases   4.11%        4.03%        3.97%     

 

9
 

 

 
4Q14

 

2.5.Operating Expenses

 

During 4Q14, operating expenses totaled COP 1,501 billion, increasing 21.0% with respect to 3Q14 and 24.4% with respect to 4Q13.

 

Personnel expenses (salaries, bonus plan payments and compensation) totaled COP 557 billion in 4Q14, increasing 23.3% as compared to 3Q14 and 41.8% as compared to 4Q13. The quarterly increase in the expenses is explained by seasonal factors, given that in the last quarter of the year payments to suppliers are higher. The annual increase is partially explained by the 12 months of Banistmo’s expenses in 2014 compared with only 2 months in 2013. The conversion to COP of the expenses in USD also contributed to the increase in this line.

 

During 4Q14, administrative expenses totaled COP 746 billion, increasing 20.7% as compared to 3Q14 and 13.1% as compared to 4Q13.

 

Depreciation expenses totaled COP 138 billion in 4Q14, decreasing 0.3% as compared to 3Q14 and increasing 16.3% as compared to 4Q13. The increase in this type of expense is explained by the growth of operating leases from Leasing Bancolombia whose assets given on lease are depreciated.

 

In 4Q14, Bancolombia reduced its goodwill amortization period from 20 to 10 years to converge in the financial and fiscal treatment of it. This caused a faster amortization in 4Q14.

 

At the end of 4Q14, Bancolombia had 30,158 employees, 1,070 branches and 4,524 ATMs.

 

10
 

 

 
4Q14

 

3.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) / Simon Botero (Analyst)

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

 

11
 

 

 
4Q14

 

BALANCE SHEET                        
(COP million)  Dec-13   Sep-14   Dec-14   Last
Quarter		   Annual   % of
Assets		   % of
Liabilities		 
ASSETS                                   
Cash and due from banks   11,427,441    10,000,245    11,192,825    11.93%   -2.05%   7.53%     
Overnight funds and interbank loans   3,981,205    2,776,563    2,249,304    -18.99%   -43.50%   1.51%     
Total cash and equivalents   15,408,646    12,776,808    13,442,129    5.21%   -12.76%   9.04%     
Debt securities   12,136,179    11,362,062    11,690,982    2.89%   -3.67%   7.86%     
Trading   6,537,697    6,753,862    7,009,161    3.78%   7.21%   4.71%     
Available for Sale   1,803,144    1,742,253    1,817,534    4.32%   0.80%   1.22%     
Held to Maturity   3,795,338    2,865,947    2,864,287    -0.06%   -24.53%   1.93%     
Equity securities   1,680,237    1,832,948    1,995,252    8.85%   18.75%   1.34%     
Trading   411,987    412,407    423,842    2.77%   2.88%   0.28%     
Available for Sale   1,268,250    1,420,541    1,571,410    10.62%   23.90%   1.06%     
Allowance for impairment   -10,626    -9,568    -8,433    -11.86%   -20.64%   -0.01%     
Net investment securities   13,805,790    13,185,442    13,677,801    3.73%   -0.93%   9.20%     
Commercial loans   52,363,519    57,174,205    64,479,202    12.78%   23.14%   43.35%     
Consumer loans   16,601,890    17,163,585    18,654,801    8.69%   12.37%   12.54%     
Small business loans   516,767    595,043    648,528    8.99%   25.50%   0.44%     
Mortgage loans   10,295,930    11,422,568    12,518,984    9.60%   21.59%   8.42%     
Financial leases   9,681,436    10,617,077    11,252,032    5.98%   16.22%   7.57%     
Allowance for loan and financial lease losses   -4,065,530    -4,465,306    -4,750,173    6.38%   16.84%   -3.19%     
Net total loans and financial leases   85,394,012    92,507,172    102,803,374    11.13%   20.39%   69.12%     
Accrued interest receivable on loans and financial leases   624,317    703,538    733,319    4.23%   17.46%   0.49%     
Allowance for accrued interest losses   -63,745    -67,674    -66,929    -1.10%   4.99%   -0.05%     
Net total interest accrued   560,572    635,864    666,390    4.80%   18.88%   0.45%     
Customers' acceptances and derivatives   602,409    686,176    1,562,928    127.77%   159.45%   1.05%     
Accounts receivable, net   1,537,218    1,635,779    1,705,770    4.28%   10.96%   1.15%     
Premises and equipment, net   2,191,677    2,199,503    2,438,790    10.88%   11.28%   1.64%     
Foreclosed assets, net   103,565    88,232    89,491    1.43%   -13.59%   0.06%     
Prepaid expenses and deferred charges, net   690,932    557,255    546,596    -1.91%   -20.89%   0.37%     
Goodwill   3,589,203    3,603,940    3,970,690    10.18%   10.63%   2.67%     
Premises and equipment under operating leases, net   2,919,181    3,404,140    3,511,304    3.15%   20.28%   2.36%     
Other assets   2,590,110    2,684,675    2,698,747    0.52%   4.19%   1.81%     
Reappraisal of assets   1,422,926    1,543,084    1,610,851    4.39%   13.21%   1.08%     
Total assets   130,816,241    135,508,070    148,724,861    9.75%   13.69%   100.00%     
LIABILITIES AND SHAREHOLDERS' EQUITY                                   
LIABILITIES                                   
DEPOSITS                                   
Non-interest bearing   14,680,487    13,089,813    15,984,894    22.12%   8.89%   10.75%   12.12%
Checking accounts   13,617,057    12,203,542    14,594,736    19.59%   7.18%   9.81%   11.06%
Other   1,063,430    886,271    1,390,158    56.85%   30.72%   0.93%   1.05%
Interest bearing   71,876,092    73,128,845    79,352,328    8.51%   10.40%   53.36%   60.16%
Checking accounts   3,167,876    3,486,419    3,548,221    1.77%   12.01%   2.39%   2.69%
Time deposits   34,058,452    35,322,572    36,628,915    3.70%   7.55%   24.63%   27.77%
Savings deposits   34,649,764    34,319,854    39,175,192    14.15%   13.06%   26.34%   29.70%
Total deposits   86,556,579    86,218,658    95,337,222    10.58%   10.14%   64.10%   72.28%
Overnight funds and interbank borrowings   1,124,802    2,998,783    2,115,104    -29.47%   88.04%   1.42%   1.60%
Bank acceptances outstanding and derivatives   464,514    581,514    1,320,483    127.08%   184.27%   0.89%   1.00%
Other interbank borrowings   7,876,792    7,390,486    9,584,922    29.69%   21.69%   6.44%   7.27%
Borrowings from development and other domestic banks   4,631,300    4,138,543    4,261,621    2.97%   -7.98%   2.87%   3.23%
Accounts payable   2,611,114    2,312,864    2,604,164    12.59%   -0.27%   1.75%   1.97%
Accrued interest payable   610,511    548,119    638,526    16.49%   4.59%   0.43%   0.48%
Other liabilities   1,250,757    1,176,962    1,431,891    21.66%   14.48%   0.96%   1.09%
Long-term debt   12,328,275    12,555,127    13,682,855    8.98%   10.99%   9.20%   10.37%
Accrued expenses   423,303    1,146,392    436,332    -61.94%   3.08%   0.29%   0.33%
Minority interest   445,448    474,376    494,387    4.22%   10.99%   0.33%   0.37%
Total liabilities   118,323,395    119,541,824    131,907,507    10.34%   11.48%   88.69%   100.00%
SHAREHOLDERS' EQUITY                                   
Subscribed and paid in capital   425,914    480,869    480,914    0.01%   12.91%   0.32%     
Retained earnings   11,253,148    14,554,267    15,377,243    5.65%   36.65%   10.34%     
Appropiated   9,802,509    13,163,116    13,498,522    2.55%   37.70%   9.08%     
Unappropiated   1,450,639    1,391,151    1,878,721    35.05%   29.51%   1.26%     
Reappraisal of assets   853,454    935,174    984,746    5.30%   15.38%   0.66%     
Gross unrealized net gain on investments   -39,670    -4,064    -25,549    528.67%   -35.60%   -0.02%     
Total shareholder's equity   12,492,846    15,966,246    16,817,354    5.33%   34.62%   11.31%     

 

12
 

 

 
4Q14

 

INCOME STATEMENT  As of   Growth               Growth 
(COP million)  Dec-13   Dec-14   Dec-14/Dec-13   4Q13   3Q14   4Q14   4Q14/3Q14   4Q14/4Q13 
Interest income and expenses                                        
Interest on loans   6,730,380    7,844,481    16.55%   1,821,119    1,972,374    2,105,281    6.74%   15.60%
Interest on investment securities   489,528    505,158    3.19%   99,396    78,760    184,336    134.05%   85.46%
Overnight funds and interbank loans   26,900    55,461    106.17%   8,970    12,565    24,247    92.97%   170.31%
Financial leases   883,876    940,508    6.41%   222,198    234,908    250,291    6.55%   12.64%
Total interest income   8,130,684    9,345,608    14.94%   2,151,683    2,298,607    2,564,155    11.55%   19.17%
Interest expense                                        
Checking accounts   29,403    29,817    1.41%   7,119    7,256    7,735    6.60%   8.65%
Time deposits   1,330,439    1,429,068    7.41%   357,034    363,413    375,331    3.28%   5.12%
Savings deposits   642,616    488,156    -24.04%   142,083    123,147    123,360    0.17%   -13.18%
Total interest on deposits   2,002,458    1,947,041    -2.77%   506,236    493,816    506,426    2.55%   0.04%
Interbank borrowings   77,995    139,633    79.03%   31,494    28,835    44,607    54.70%   41.64%
Borrowings from development and other domestic banks   223,193    238,818    7.00%   58,437    57,582    56,759    -1.43%   -2.87%
Overnight funds   61,104    127,523    108.70%   19,113    41,211    54,416    32.04%   184.71%
Long-term debt   757,376    787,772    4.01%   187,857    193,504    215,380    11.31%   14.65%
Total interest expense   3,122,126    3,240,787    3.80%   803,137    814,948    877,588    7.69%   9.27%
Net interest income   5,008,558    6,104,821    21.89%   1,348,546    1,483,659    1,686,567    13.68%   25.07%
Provisions for loans and accrued interest losses and other receivables , net   (1,394,075)   (1,614,936)   15.84%   (327,858)   (429,151)   (459,238)   7.01%   40.07%
Recovery of charged-off loans   231,396    241,200    4.24%   69,412    55,142    82,749    50.07%   19.21%
Provision for foreclosed assets and other assets   (152,802)   (129,422)   -15.30%   (37,347)   (29,616)   (30,001)   1.30%   -19.67%
Recovery of provisions for foreclosed assets and other assets   84,881    98,104    15.58%   22,874    19,406    28,388    46.28%   24.11%
Total net provisions   (1,230,600)   (1,405,054)   14.18%   (272,919)   (384,219)   (378,102)   -1.59%   38.54%
Net interest income after provision for loans and accrued interest losses   3,777,958    4,699,767    24.40%   1,075,627    1,099,440    1,308,465    19.01%   21.65%
Commissions from banking services   536,983    713,453    32.86%   172,050    183,259    193,683    5.69%   12.57%
Electronic services and ATM fees   80,773    103,387    28.00%   22,828    26,192    29,038    10.87%   27.20%
Branch network services   135,474    149,568    10.40%   38,628    38,506    40,528    5.25%   4.92%
Collections and payments fees   283,760    341,509    20.35%   77,756    87,449    94,684    8.27%   21.77%
Credit card merchant fees   8,295    15,128    82.37%   2,697    6,358    6,193    -2.60%   129.63%
Credit and debit card fees   690,065    800,066    15.94%   184,737    193,928    216,916    11.85%   17.42%
Checking fees   70,261    66,890    -4.80%   17,653    15,813    15,982    1.07%   -9.47%
Trust activities   207,994    208,156    0.08%   49,046    52,005    53,245    2.38%   8.56%
Brokerage fees   62,615    57,158    -8.72%   12,878    16,045    14,090    -12.18%   9.41%
Check remittances   25,082    44,898    79.00%   9,055    11,029    12,284    11.38%   35.66%
International wire transfers   62,921    86,563    37.57%   17,253    21,253    24,905    17.18%   44.35%
Fees and other service income   2,164,223    2,586,776    19.52%   604,581    651,837    701,548    7.63%   16.04%
Fees and other service expenses   (247,867)   (349,881)   41.16%   (79,563)   (86,926)   (113,565)   30.65%   42.74%
Total fees and income from services, net   1,916,356    2,236,895    16.73%   525,018    564,911    587,983    4.08%   11.99%
Other operating income                                        
Foreign exchange gain (loss), net   94,595    393,070    315.53%   62,889    127,374    194,924    53.03%   209.95%
Gains on forward contracts in foreign currency   27,320    (103,183)   -477.68%   7,613    (53,433)   (68,107)   27.46%   -994.61%
Gains on sales of investments in equity securities   3,780    1,670    -55.82%   4,916    (475)   2,904    711.37%   -40.93%
Gains on sales of mortgage loans   31,593    18,415    -41.71%   5,758    4,800    3,968    -17.33%   -31.09%
Dividend income   63,007    78,337    24.33%   8,402    5,149    8,880    72.46%   5.69%
Income from non-financial subsidiaries   143,893    154,493    7.37%   36,605    38,745    40,902    5.57%   11.74%
Insurance income   10,164    23,051    126.79%   10,164    7,255    15,783    117.55%   55.28%
Communication, postage, rent and others   465,773    586,502    25.92%   121,443    149,887    153,183    2.20%   26.14%
Total other operating income   840,125    1,152,355    37.16%   257,790    279,302    352,437    26.18%   36.71%
Total income   6,534,439    8,089,017    23.79%   1,858,435    1,943,653    2,248,885    15.70%   21.01%
Operating expenses                                        
Salaries and employee benefits   1,467,780    1,646,478    12.17%   367,606    397,268    446,496    12.39%   21.46%
Bonus plan payments   154,550    241,831    56.47%   16,730    41,194    98,409    138.89%   488.22%
Indemnities benefits   33,965    49,466    45.64%   8,395    13,029    11,979    -8.06%   42.69%
Administrative and other expenses   2,327,908    2,514,411    8.01%   659,745    617,830    746,019    20.75%   13.08%
Insurance on deposits, net   135,816    160,629    18.27%   34,462    24,149    56,415    133.61%   63.70%
Donation expenses   11,525    14,711    27.64%   1,545    8,291    3,795    -54.23%   145.63%
Depreciation   428,856    537,129    25.25%   118,886    138,707    138,307    -0.29%   16.34%
Total operating expenses   4,560,400    5,164,655    13.25%   1,207,369    1,240,468    1,501,420    21.04%   24.35%
Net operating income   1,974,039    2,924,362    48.14%   651,066    703,185    747,465    6.30%   14.81%
Goodwill amortization (1)   78,880    397,798    404.31%   38,335    51,519    242,073    369.87%   531.47%
Non-operating income (expense)                                        
Other income   233,721    220,188    -5.79%   99,878    43,445    90,468    108.24%   -9.42%
Minority interest   (17,364)   128    100.74%   (9,981)   1,846    (1,214)   -165.76%   -87.84%
Other expense   (179,294)   (190,009)   5.98%   (69,836)   (31,655)   (64,834)   104.81%   -7.16%
Previous periods (*)   -    (89,075)   0.00%   -    (89,075)   -    -100.00%   0.00%
Total non-operating income   37,063    (58,768)   -258.56%   20,061    (75,439)   24,420    132.37%   21.73%
Income before income taxes   1,932,222    2,467,796    27.72%   632,792    576,227    529,812    -8.05%   -16.27%
Income tax expense   (417,095)   (589,075)   41.23%   (144,052)   (160,711)   (42,242)   -73.72%   -70.68%
Net income   1,515,127    1,878,721    24.00%   488,740    415,516    487,570    17.34%   -0.24%

 

(*) Correction of non-material mistakes for the periods 2012 and 2013, for a total amount of COP 89.075 million, resulting from the double recording of certain securities provided as guarantee by the Bank´s proprietary trading desk. This operational risk was caused by a design flaw in a software created for the purpose of managing the Bank´s securities portfolio. The flaw was duly corrected by the Bank.

 

13
 

 

SIGNATURE

 

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

         
  BANCOLOMBIA S.A.
(Registrant)
 		  
Date:  February 17, 2015  By:   /s/  JAIME ALBERTO VELÁSQUEZ B.                      
    Name:   Jaime Alberto Velásquez B.  
    Title:   Vice President of Strategy and Finance