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 August, 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 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):___

 

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-                    .

 

   

 

 

   

2Q15

 

BANCOLOMBIA S.A. (NYSE: CIB; BVC: BCOLOMBIA, PFBCOLOM) REPORTS SOLID RESULTS WITH A CONSOLIDATED NET INCOME OF COP 695 BILLION FOR THE SECOND QUARTER OF 2015

 

·Net operating income increased 11.0% compared to the first quarter of 2015 and 11.8% compared to the second quarter of 2014. This result is a combination of higher net interest income and higher financial efficiency.

 

·Net interest income increased 18.6% during the second quarter of 2015. It increased 19.2% in the first half of 2015 in comparison with the same period of 2014. This result is the combination of higher loan volumes in the past twelve months and stable loan net interest margins.

 

·Efficiency improves to 47.8% for the first six months of 2015, in comparison with 50.1% for the same period of 2014. Operating income for the first six months of 2015 grew 15.1% while operating expenses grew 11.1%.

 

·Net loan portfolio increased 2.4% during the second quarter of 2015 and 23.1% 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 solid. 90-day past due loans represented 1.8% of gross loans at the end of 2Q15 (3.1% when using the 30 day standard) and allowances represented 215% of those day past due loans (119% when using the 30-day standard). The total capital ratio was 13.7% and the Tier 1 ratio was 8.2%.

 

·ROE was 15.8% for the second quarter and 15% for the first six months of the 2015.

 

August 13, 2015. Medellín, Colombia – Today, BANCOLOMBIA S.A. (“Bancolombia” or “the Bank”) announced its earnings results for the second quarter of 20151.

 

For the quarter ended on June 30, 2015 (“1Q15”), Bancolombia reported consolidated net income of COP 695 billion (COP 685 billion before discontinued operations)), or COP 712 per share - USD 1.10 per ADR. This net income represents an 11% increase compared to the quarter ended on March 31, 2015 (“1Q15”) and an 11.8% increase compared to the quarter ended on June 30, 2014 “2Q15”).

 

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. For more information, See “item 3 – Recent Relevant Events” and Appendix.

 

 

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 June 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 July 1, 2015 $2,598.68 = US$ 1

 

  1 

 

 

   

2Q15

 

BANCOLOMBIA: Summary of consolidated financial quarterly results2

 

CONSOLIDATED BALANCE SHEET

AND INCOME STATEMENT

  Quarter   Growth 
(COP millions)  2Q14   1Q15   2Q15   2Q15/1Q15   2Q15/2Q14 
ASSETS                         
Loans   99,059,413    118,480,197    121,202,514    2.30%   22.35%
Investments   11,286,975    13,324,194    12,774,812    -4.12%   13.18%
Other assets   19,165,014    24,677,441    24,286,002    -1.59%   26.72%
Total assets   129,511,402    156,481,832    158,263,328    1.14%   22.20%
                          
LIABILITIES AND SHAREHOLDERS' EQUITY                         
Deposits   83,033,038    97,637,134    97,540,528    -0.10%   17.47%
Other liabilities   30,747,043    40,933,018    42,121,701    2.90%   36.99%
Total liabilities   113,780,081    138,570,152    139,662,229    0.79%   22.75%
Non-controlling interest   485,440    475,160    515,767    8.55%   6.25%
Shareholders' equity   15,245,881    17,436,520    18,085,332    3.72%   18.62%
Total liabilities and shareholders' equity   129,511,402    156,481,832    158,263,328    1.14%   22.20%
                          
Interest income   2,247,217    2,654,505    2,712,365    2.18%   20.70%
Interest expense   (752,977)   (892,664)   (941,016)   5.42%   24.97%
Net interest income   1,494,240    1,761,841    1,771,349    0.54%   18.55%
Net provisions   (250,279)   (311,293)   (415,926)   33.61%   66.18%
Fees and income from service, net   514,225    522,698    554,100    6.01%   7.75%
Other operating income   175,934    213,831    174,405    -18.44%   -0.87%
Total Dividends received and equity method   38,211    53,897    75,779    40.60%   98.32%
Total operating expense   (1,114,504)   (1,201,205)   (1,251,358)   4.18%   12.28%
Total other income (expenses)   7,590    25,788    (10,429)   -140.44%   -237.40%
Profit before tax   865,417    1,065,557    897,920    -15.73%   3.76%
Income tax   (226,140)   (264,556)   (203,336)   -23.14%   -10.08%
Tax on wealth   -    (162,302)   -    -100.00%   0.00%
Net income before non-controlling interest   639,277    638,699    694,584    8.75%   8.65%
Non-controlling interest   (22,282)   (23,772)   (9,187)   -61.35%   -58.77%
Net income before Descontinued Operations   616,995    614,927    685,397    11.46%   11.09%
Discontinued Operations Net Income   4,539    11,315    9,585    -40.11%   49.28%
Net income   621,534    626,242    694,982    10.98%   11.82%

 

PRINCIPAL RATIOS  Quarter   As of 
   2Q14   1Q15   2Q15   2Q14   2Q15 
PROFITABILITY                         
Net interest margin (1)   5.51%   5.53%   5.40%   5.47%   5.48%
Return on average total assets (2)   1.92%   1.63%   1.77%   1.88%   1.70%
Return on average shareholders´ equity (3)   16.56%   14.28%   15.78%   16.43%   15.02%
EFFICIENCY                         
Operating expenses to net operating income   50.14%   47.06%   48.58%   50.43%   47.83%
Operating expenses to average total assets   3.47%   3.18%   3.24%   3.44%   3.21%
CAPITAL ADEQUACY                         
Shareholders' equity to total assets   11.77%   11.14%   11.43%          
Technical capital to risk weighted assets        14.21%   13.66%          
KEY FINANCIAL HIGHLIGHTS                         
Net income per ADS (USD)   1.36    0.98    1.10           
Net income per share (COP)   641.48    639.33    712.60           
P/BV ADS (4)   1.71    1.41    1.49           
P/BV Local (5) (6)   1.67    1.35    1.42           
P/E (7)   10.46    9.77    9.57           
ADR price   57.80    39.33    43.00           
Common share price (8)   26,540    24,500    26,700           
Weighted average of Preferred Shares outstanding (9)   961,827,000    961,827,000    961,827,000           
USD exchange rate (quarter end)   1,881.19    2,598.36    2,598.68           

 

 

(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 

 

 

   

2Q15

 

1.BALANCE SHEET

 

1.1.Assets

 

As of June 30, 2015, Bancolombia’s assets totaled COP 158,263 billion, which represents an increase of 1.1% compared to 1Q15 and of 22.2% compared to 2Q14. The annual growth was explained, 11% 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 (remaining stable between the last days of 1Q15 and 2Q15 and 38.1% during the last 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 =2598,68 COP)      2Q15/1Q15       2Q15/1Q15       2Q15/1Q15       2Q15/1Q15 
Commercial loans   56,216,081    3.93%   30,313,891    -1.44%   11,665,111    -1.45%   86,529,972    1.98%
Consumer loans   11,984,291    2.20%   6,323,483    1.62%   2,433,344    1.60%   18,307,774    2.00%
Mortgage loans   9,891,247    5.03%   5,742,874    2.89%   2,209,920    2.88%   15,634,121    4.23%
Small  business loans   560,505    6.22%   192,670    9.44%   74,141    9.43%   753,175    7.03%
Interests paid in advance   (19,711)   0.03%   (2,817)   -11.42%   (1,084)   -11.43%   (22,528)   -1.56%
Gross loans   78,632,413    3.81%   42,570,101    -0.39%   16,381,432    -0.40%   121,202,514    2.30%
Total assets   98,187,091    3.54%   60,076,237    -2.56%   23,117,982    -2.57%   158,263,328    1.14%

 

The most relevant aspects regarding the evolution of the loan portfolio during 2Q15 were:

 

·              The growth of commercial and mortgage loans during 2Q15 shows a sustained credit demand. Consumer loans grew over the quarter due to a recovery of demand in this segment, in line with seasonal factors.

 

·              COP showed no depreciation against the USD between the last days of 1Q15 and 2Q15, although it depreciated 38.1% in the last 12 months. This annual depreciation caused both the assets and liabilities denominated in USD to represent more COP when the conversion was made.

 

·              Mortgage loans denominated in COP presented a dynamic performance, growing 5% 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 36% of the mortgage loans at the end of 2Q15.

 

·              Net loans grew 6.9% as compared to December 2014, with indicates a deceleration in the pace of growth in 2015.

 

Total reserves (allowances in the balance sheet) for loan losses increased by 0.75% during 2Q15 and totaled COP 4,631 billion, equivalent to 3.8% 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”.

 

  3 

 

 

   

2Q15

 

The following table summarizes Bancolombia’s total loan portfolio:

 

LOAN PORTFOLIO                        
(COP million)  Jun-14   Mar-15   Jun-15   2Q15/1Q15   2Q15/2Q14   % of total loans 
Commercial   70,859,548    84,850,457    86,529,972    1.98%   22.11%   71.4%
Consumer   15,538,310    17,949,406    18,307,774    2.00%   17.82%   15.1%
Mortgage   12,100,204    14,999,488    15,634,121    4.23%   29.21%   12.9%
Microcredit   577,449    703,731    753,175    7.03%   30.43%   0.6%
Interests received in advance   (16,098)   (22,885)   (22,528)   -1.56%   39.94%   0.0%
Total loan portfolio   99,059,413    118,480,197    121,202,514    2.30%   22.35%   100.0%
Allowance for loan losses   (4,337,735)   (4,597,073)   (4,631,361)   0.75%   6.77%     
Total loans, net   94,721,678    113,883,124    116,571,153    2.36%   23.07%     

 

1.3.Investment Portfolio

 

As of June 30, 2015, Bancolombia’s net investment portfolio totaled COP 12,775 billion, decreasing 4.1% compared to the figure reported in 1Q15 and growing 13.2% compared to 2Q14. This quarterly decrease is explained by the bank's strategy to reduce its securities portfolio. The investment portfolio consists primarily of debt securities, which represent 90.5% of Bancolombia’s total investments and 7.3% of assets at the end of 2Q15.

 

At the end of 2Q15, the investments in debt securities had a duration of 24.2 months and a yield to maturity of 5.43%.

 

1.4.Goodwill and intangibles

 

As of 2Q15, Bancolombia’s goodwill and intangibles totaled COP 4,934 billion, increasing 31.9% compared to 2Q14. This annual variation is explained by the depreciation of the COP against the USD during the year.

 

1.5.Funding

 

As of June 30, 2015, Bancolombia’s liabilities totaled COP 139,662 billion, increasing 0.8% compared to 1Q15 and 22.8% compared to 2Q14.

 

Deposits by customers totaled COP 97,208 billion (or 69.6% of liabilities) at the end of 2Q15, increasing 0.4% during the quarter and 17.6% over the last 12 months. The net loans to deposits ratio (including borrowings from domestic development banks) was 114% at the end of 2Q15, increasing compared to the 112% reported in 1Q15, and the 108% reported in 2Q14.

 

Bancolombia´s funding strategy during the quarter was to limit the rapid increase of the cost of deposits while maintaining the liquidity position. This strategy allowed the bank to keep the cost of deposits low during the quarter. The ultimate goal is to defend the net interest margin.

 

Funding mix

COP Million

  2Q14    1Q15    2Q15  
Checking accounts   15,548,232    15%   17,649,725    14%   17,852,471    14%
Saving accounts   33,657,609    32%   38,667,767    30%   39,136,638    30%
Time deposits   32,602,779    31%   38,427,656    30%   39,165,003    30%
Other deposits   1,286,281    1%   5,099,439    4%   4,135,788    3%
Long term debt   11,754,099    11%   14,458,397    11%   15,124,313    12%
Loans with banks   11,422,454    11%   15,518,811    12%   15,164,032    12%
Total Funds   106,271,454    100%   129,821,795    100%   130,578,245    100%

 

  4 

 

 

   

2Q15

 

1.6.Shareholders’ Equity and Regulatory Capital

 

Shareholders’ equity at the end of 2Q15 was COP 18,085 billion, increasing 3.7% or COP 649 billion, with respect to the COP 17,436 billion reported at the end of 1Q15.

 

Bancolombia’s capital adequacy ratio was 13.7%. This figure highlights the company’s solid capital position.

 

Bancolombia’s capital adequacy ratio was 466 basis points above the minimum 9% required by Colombia’s regulator, while the basic capital ratio (Tier 1) to risk weighted assets was 8.2%, 366 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 8.4% at the end of 2Q15.

 

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


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

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

 

  5 

 

 

   

2Q15

 

2.INCOME STATEMENT

 

Net income totaled COP 695 billion in 2Q15, or COP 712.6 per share - USD 1.10 per ADR (excluding discontinued operations). This net income represents an increase of 11.8% compared to 2Q14 and of 11% compared to 1Q15. Bancolombia’s annualized ROE for 2Q15 was 15.8%.

 

2.1.Net Interest Income

 

Net interest income totaled COP 1,771 billion in 2Q15, 0.5% greater than that reported in 1Q15, and 18.6% higher than the figure for 2Q14. The annual performance of this line was driven by higher loan volumes and the depreciation of the COP versus the USD.

 

During 2Q15, the investment, interest rate derivatives and repos portfolio generated COP 67.6 billion.

 

Net Interest Margin

 

The annualized net interest margin decreased to 5.4% in 2Q15, explained by the reduction of the value of debt securities in Colombia..

 

The annualized net interest margin for investments was -0.5%, lower than the 1.0% of 1Q15 and the annualized net interest margin of the loan portfolio was 6.0%, which is the same as in 1Q15.

 

Annualized Interest            
Margin  2Q14   1Q15   2Q15 
Loans' Interest margin   6.1%   6.0%   6.0%
Debt investments' margin   0.5%   1.0%   -0.5%
Net interest margin   5.5%   5.5%   5.4%

 

The funding cost increased during 2Q15 and increased slightly due to the gradual reduction of liquidity in the Colombian economy. Savings and checking accounts represented the same proportion of the total deposits as presented last quarter (“1Q15”), and the annualized average weighted cost of deposits was 2.3% in 2Q15, increasing 0.14% compared to 1Q15.

 

Average weighted            
funding cost  2Q14   1Q15   2Q15 
Checking accounts   0.00%   0.00%   0.00%
Saving accounts   1.37%   1.34%   1.35%
Time deposits   3.97%   4.11%   4.38%
Total deposits   2.14%   2.19%   2.33%
Long term debt   6.10%   6.56%   6.52%
Loans with banks   2.94%   2.60%   2.40%
Total funding cost   2.69%   2.71%   2.79%

 

2.2.Fees and Income from Services

 

In the 2Q15, certain accounts were reclassified as Fees, since they were previously included in the “Other Income” and “Other Expenses” lines.

 

  6 

 

 

   

2Q15

 

During 2Q15, net fees and income from services totaled COP 554 billion, increasing 6.0% with respect to 1Q15 and increasing 7.8% with respect to 2Q14. Fees from credit and debit cards increased 4.4% compared to 1Q15 due to an increase in the volume of transactions. Fees from asset management and trust services increased 0.4% in 1Q15 and 31.4% compared to 2Q14. Fees from insurance distribution increased 28.5% with respect to 1Q15 and 29.2% with respect to 1Q14.

 

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

 

ACCUMULATED CREDIT CARD BILLING  %   2015 
(COP millions)  May-14   May-15   Growth   Market Share 
Bancolombia VISA   1,218,992    1,450,041    18.95%   7.97%
Bancolombia Mastercard   1,507,056    1,684,889    11.80%   9.26%
Bancolombia American Express   1,625,872    1,651,998    1.61%   9.08%
Total Bancolombia   4,351,920    4,786,928    10.00%   26.31%
Colombian Credit Card Market   16,342,132    18,192,153    11.32%     

 

CREDIT CARD MARKET SHARE  %   2015 
(Outstanding credit cards)  May-14   May-15   Growth   Market Share 
Bancolombia VISA   466,165    530,166    13.73%   5.20%
Bancolombia Mastercard   612,902    684,295    11.65%   6.71%
Bancolombia American Express   691,392    692,764    0.20%   6.79%
Total Bancolombia   1,770,459    1,907,225    7.72%   18.69%
Colombian Credit Card Market   9,337,422    10,202,533    9.26%     

 

2.3.Other Operating Income

 

Total other operating income was COP 174 billion in 2Q15, decreasing 18.4% compared to 2Q15, and decreasing 0.9% with respect to 2Q14.

 

Revenues aggregated in the operating leases line totaled COP 93 billion in 2Q15, and decreased 9% compared to 1Q15 and decreased 11% compared to 2Q14.

 

2.4.Asset Quality, Provision Charges and Balance Sheet Strength

 

Past due loans (those that are overdue for more than 30 days) totaled COP 3,604 billion at the end of 2Q15 and represented 3.1% of total gross loans, increasing compared to the 3.0% reported in 1Q15. Charge-offs totaled COP 265 billion in 2Q15.

 

The coverage, measured by the ratio of allowances for loans losses (principal) to PDLs (overdue 30 days), was 118,7% at the end of 2Q15, decreasing with respect to the 120,1% in 1Q15. Likewise, the coverage measured by the ratio of allowances for loans losses to loans classified as C, D and E, was 99% at the end of 2Q15, decreasing with respect to the 101% reported in 1Q15.

 

The deterioration of the loan portfolio (new past due loans including charge-offs) was COP 446 billion in 2Q15, which represented 0.4% of the loan portfolio at the beginning of the quarter.

 

Provision charges (net of recoveries) totaled COP 416 billion in 2Q15. Provisions as a percentage of the average gross loans were 1.4% for 2Q15.

 

Bancolombia maintains a strong balance sheet supported on an adequate level of loan loss reserves. Allowances for loan losses totaled COP 4,278 billion, or 3.7% of total loans at the end of 2Q15. This proportion increased with respect to the 3.6% presented at the end of 1Q15.

 

  7 

 

 

   

2Q15

 

The following tables present key metrics related to asset quality:

 

ASSET QUALITY  As of    
( COP millions)  Mar-15   Jun-15   
Total past due loans   3,424,230    3,604,672   
Allowance for loan losses   4,132,971    4,278,441   
Past due loans to total loans   3.02%   3.11%  
“C”, “D” and “E” loans as a percentage of total loans   3.60%   3.74%  
Allowances to past due loans (2)   120.70%   118.69%  
Allowance for loan  losses as a percentage of “C”, “D” and “E” loans (2)   101.06%   98.61%  
Allowance for loan losses as a percentage of total loans   3.64%   3.69%  

 

(1)Allowances are reserves for the principal of loans.
(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   1Q15   2Q15 
Commercial loans   71.4%   1.90%   1.90%
Consumer loans   15.1%   4.40%   4.50%
Microcredit   0.6%   8.33%   8.57%
Mortgage loans   12.9%   6.60%   6.70%
PDL TOTAL         3.00%   3.10%

 

PDL Per Category      90 days 
   % Of loan Portfolio   1Q15   2Q15 
Commercial loans   71.4%   1.40%   1.40%
Consumer loans   15.1%   2.00%   2.30%
Microcredit   0.6%   5.12%   5.55%
Mortgage loans   12.9%   3.00%   3.20%
PDL TOTAL         1.70%   1.80%

 

LOANS AND FINANCIAL LEASES CLASSIFICATION
( COP millions)		  Mar-15   Jun-15 
¨A¨ Normal   107,445,075    90.67%   109,931,388    90.68%
¨B¨ Subnormal   6,581,199    5.55%   6,648,655    5.48%
¨C¨ Deficient   2,023,385    1.71%   1,943,792    1.60%
¨D¨ Doubtful recovery   1,325,902    1.12%   1,737,578    1.43%
¨E¨ Unrecoverable   1,127,520    0.95%   963,629    0.81%
Total   118,503,081    100.00%   121,225,041    100.00%
Loans and financial leases classified as C, D and E as a percentage of total loans and financial leases   3.90%        3.96%     

 

2.5.Operating Expenses

 

During 2Q15, operating expenses totaled COP 1,251 billion, increasing 4.2% with respect to 1Q15 and increasing 12.3% with respect to 2Q14.

 

Personnel expenses (salaries, bonus plan payments and compensation) totaled COP 547 billion in 2Q15, increasing 5.8% compared to 1Q15 and increasing 22.5% compared to 2Q14.

 

During 2Q15, administrative expenses totaled COP 481 billion, increasing 1.9% compared to 1Q15 and increasing 8.4% as compared to 2Q14.

 

Amortization and depreciation expenses totaled COP 105 billion in 2Q15, decreasing 0.1% compared to 1Q15 and increasing decreasing 4.3% compared to 2Q14.

 

As of June 30, 2015, Bancolombia had more than 30,514 employees, and owned 1,069 branches and 4,696 ATMs.

 

  8 

 

 

   

2Q15

 

3.RECENT DEVELOPMENTS

 

On June 30, 2015 Bancolombia S.A (“Bancolombia”), Fondo de Empleados of Grupo Bancolombia- FEBANC and Fundacion Bancolombia, (“the sellers”), and Almacenes Éxito S.A (Almacenes Exito) and Almacenes Éxito Inversiones S.A.S (“the buyers”) entered into a purchase and sale agreement whereby the sellers will transfer 50% of the shares of Compañia de Financiamiento Tuya S.A (“Tuya”), a financial institution located in Colombia through which sellers and buyers have developed a commercial alliance for financing business growth and the strengthening of consumer credit.

 

The purchase price will be determined at the closing and will equal the sum of:

 

(i) Fifty percent (50%) of the sum of the following accounts of Tuya according to the most recent financial statements before the closing (a) equity (b) capital stock (c) additional paid in capital (ii) One thousand five hundred million Colombian pesos (COP1,500,000,000) The sale is subject to certain conditions, including, among others, receipt of the required regulatory approvals by the Colombian Superintendence of Finance.

 

This transaction will not produce a material impact on Grupo Bancolombia’s income and dividends from Tuya, due to subsisting commercial and business conditions in which the commercial alliance with Almacenes Exito has developed.

 

  9 

 

 

   

2Q15

 

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/

 

  10 

 

  

   

2Q15

 

BALANCE SHEET              Growth         
(COP million)  Jun-14   Mar-15   Jun-15   Jun-15 /
Mar-15		   Jun-15 /
Jun-14		   % of
Assets		   % of
Liabilities		 
ASSETS                                   
Cash and balances at central bank   8,254,171    10,946,384    10,771,960    -1.59%   30.50%   6.81%     
Interbank borrowings   1,838,477    1,524,439    1,087,203    -28.68%   -40.86%   0.69%     
Reverse repurchase agreements and other similar secured lend   845,646    942,245    1,236,053    31.18%   46.17%   0.78%     
Investments   11,286,975    13,324,194    12,774,812    -4.12%   13.18%   8.07%     
Derivative financial instruments - Assets   553,659    1,618,568    1,354,933    -16.29%   144.72%   0.86%     
Loans and advances to customers   99,059,413    118,480,197    121,202,514    2.30%   22.35%   76.58%     
Allowance for loan and lease losses   (4,337,735)   (4,597,073)   (4,631,361)   0.75%   6.77%   -2.93%     
Investment in associates and joint ventures   897,570    1,209,209    1,300,574    7.56%   44.90%   0.82%     
Goodwill and Intangible assets   3,741,326    4,943,569    4,933,573    -0.20%   31.87%   3.12%     
Premises and equipment   2,265,534    2,495,262    2,585,540    3.62%   14.12%   1.63%     
Investment property   1,044,113    1,138,332    1,261,018    10.78%   20.77%   0.80%     
Prepayments   159,759    218,148    228,115    4.57%   42.79%   0.14%     
Tax receivables   148,014    367,274    727,901    98.19%   391.78%   0.46%     
Deferred tax   368,416    540,450    459,257    -15.02%   24.66%   0.29%     
Assets held for sale   226,759    197,196    202,062    2.47%   -10.89%   0.13%     
Other assets   1,397,549    1,481,817    1,137,768    -23.22%   -18.59%   0.72%     
Discontinued operations (Assets)   1,761,756    1,651,621    1,631,406    -1.22%   -7.40%          
Total assets   129,511,402    156,481,832    158,263,328    1.14%   22.20%   100.00%     
LIABILITIES AND SHAREHOLDERS' EQUITY                                   
LIABILITIES                                    
Deposit by customers   82,672,388    96,829,029    97,208,199    0.39%   17.58%   61.42%   69.60%
Interbank Deposits   360,650    808,105    332,329    -58.88%   -7.85%   0.21%   0.24%
Derivative financial instrument - Liabilities   384,366    1,279,915    1,106,328    -13.56%   187.83%   0.70%   0.79%
Borrowings from other financial institutions   11,061,804    14,710,706    14,831,703    0.82%   34.08%   9.37%   10.62%
Debt securities in issue   11,754,099    14,458,397    15,124,313    4.61%   28.67%   9.56%   10.83%
Preferred shares   550,504    537,335    551,401    2.62%   0.16%   0.35%   0.39%
Repurchase agreements and other similar secured borrowing   422,513    3,015,558    3,081,701    2.19%   629.37%   1.95%   2.21%
Tax liabilities   78,663    245,678    324,900    32.25%   313.03%   0.21%   0.23%
Deferred tax liabilities   569,849    696,700    776,156    11.40%   36.20%   0.49%   0.56%
Employee pension plan   120,574    128,323    135,828    5.85%   12.65%   0.09%   0.10%
Other liabilities   4,241,289    4,414,572    4,772,197    8.10%   12.52%   3.02%   3.42%
Discontinued operations (Liabilities)   1,563,382    1,445,834    1,417,174    -1.98%   -9.35%          
Total liabilities   113,780,081    138,570,152    139,662,229    0.79%   22.75%   88.25%   100.00%
SHAREHOLDERS' EQUITY                                   
Capital   464,495    480,914    480,914    0.00%   3.53%   0.30%     
Additional paid-in-capital   4,857,914    4,857,454    4,857,454    0.00%   -0.01%   3.07%     
Appropriate reserves   5,180,046    6,005,783    6,006,764    0.02%   15.96%   3.80%     
Retained earnings   4,790,592    5,280,049    5,969,300    13.05%   24.60%   3.77%     
Cumulative other comprehensive income   (47,166)   812,320    770,900    -5.10%   1734.44%   0.49%     
Stockholders’ equity attributable the owners of the parent company   15,245,881    17,436,520    18,085,332    3.72%   18.62%   11.43%     
Non-controlling interest   485,440    475,160    515,767    8.55%   6.25%   0.33%     
Total liabilities and stockholders' equity   129,511,402    156,481,832    158,263,328    1.14%   22.20%   100.00%     

 

  11 

 

 

   

2Q15

 

INCOME STATEMENT  As of   Growth               Growth 
(COP million)   Jun-14    Jun-15    Jun-15/Jun-14    2Q14    1Q15    2Q15    2Q15/1Q15    2Q15/2Q14 
Interest income and expenses                                        
Interest on loans                                        
Commercial   2,019,201    2,575,491    27.55%   1,055,126    1,263,173    1,312,318    3.89%   24.38%
Consumer   971,543    1,084,818    11.66%   483,098    539,909    544,909    0.93%   12.79%
Small business loans   64,828    88,360    36.30%   33,108    42,826    45,534    6.32%   37.53%
Mortgage   606,153    677,838    11.83%   308,512    323,203    354,635    9.73%   14.95%
Leasing   557,290    760,415    36.45%   276,090    376,458    383,957    1.99%   39.07%
Total Interest on loans   4,219,015    5,186,922    22.94%   2,155,934    2,545,569    2,641,353    3.76%   22.52%
Overnight and market funds   6,283    6,192    -1.45%   2,966    2,803    3,389    20.91%   14.26%
Investment                                        
Debt investments, net   15,978    24,645    54.24%   8,429    12,479    12,166    -2.51%   44.34%
Net gains from investment activities at fair value through income statement                                        
Debt investments   245,241    220,185    -10.22%   61,130    138,877    81,308    -41.45%   33.01%
Derivatives   (61,392)   (14,626)   -76.18%   (16,526)   (19,288)   4,662    124.17%   128.21%
Repos   90,727    (46,462)   -151.21%   42,341    (22,575)   (23,887)   5.81%   -156.42%
Others   (10,147)   (9,986)   -1.59%   (7,057)   (3,360)   (6,626)   97.20%   -6.11%
Net gains from investment activities at fair value through income statement   264,429    149,111    -43.61%   79,888    93,654    55,457    -40.79%   -30.58%
Total interest on investment securities   280,407    173,756    -38.03%   88,317    106,133    67,623    -36.28%   -23.43%
Total interest income   4,505,705    5,366,870    19.11%   2,247,217    2,654,505    2,712,365    2.18%   20.70%
Interest expense                                        
Borrowing costs   (194,667)   (196,460)   0.92%   (97,617)   (101,794)   (94,666)   -7.00%   -3.02%
Overnight funds   (944)   (3,860)   308.90%   (147)   (2,130)   (1,730)   -18.78%   1076.87%
Debt securities in issue   (371,132)   (473,176)   27.50%   (184,689)   (231,997)   (241,179)   3.96%   30.59%
Deposits   (919,103)   (1,089,796)   18.57%   (445,914)   (524,681)   (565,115)   7.71%   26.73%
Other interest (expense)   (55,419)   (70,388)   27.01%   (24,610)   (32,062)   (38,326)   19.54%   55.73%
Total interest expense   (1,541,265)   (1,833,680)   18.97%   (752,977)   (892,664)   (941,016)   5.42%   24.97%
Net interest income   2,964,440    3,533,190    19.19%   1,494,240    1,761,841    1,771,349    0.54%   18.55%
Loan loss provisions   (592,902)   (768,940)   29.69%   (276,590)   (328,927)   (440,013)   33.77%   59.08%
Recovery of charged-off loans   72,492    99,888    37.79%   37,405    29,108    70,780    143.16%   89.23%
Other assets impairment   (32,359)   (58,167)   79.76%   (11,094)   (11,474)   (46,693)   306.95%   320.89%
Total net provisions   (552,769)   (727,219)   31.56%   (250,279)   (311,293)   (415,926)   33.61%   66.18%
Net interest income after provision, net   2,411,671    2,805,971    16.35%   1,243,961    1,450,548    1,355,423    -6.56%   8.96%
Fees and other service income                                        
Banking services   322,650    343,944    6.60%   165,836    172,990    170,954    -1.18%   3.09%
Credit and debit card fees   336,138    415,754    23.69%   167,573    203,424    212,330    4.38%   26.71%
Electronic services and ATM fees   162,301    185,288    14.16%   82,877    91,094    94,194    3.40%   13.66%
Brokerage   11,377    11,541    1.44%   6,264    4,736    6,805    43.69%   8.64%
Acceptances, Guarantees and Standby letters of credits   25,211    21,950    -12.93%   9,927    11,291    10,659    -5.60%   7.37%
Trust   100,579    130,823    30.07%   49,868    65,296    65,527    0.35%   31.40%
Bancassurance   99,673    122,298    22.70%   53,244    53,516    68,782    28.53%   29.18%
Payments and Collections   85,680    96,202    12.28%   44,723    46,428    49,774    7.21%   11.29%
Others   178,002    147,103    -17.36%   101,847    67,917    79,186    16.59%   -22.25%
Fees and other service income   1,321,611    1,474,903    11.60%   682,159    716,692    758,211    5.79%   11.15%
Fees and other service expenses                                        
Banking services   (105,797)   (119,841)   13.27%   (55,277)   (60,433)   (59,408)   -1.70%   7.47%
Others   (212,245)   (278,264)   31.11%   (112,657)   (133,561)   (144,703)   8.34%   28.45%
Fees and other service expenses   (318,042)   (398,105)   25.17%   (167,934)   (193,994)   (204,111)   5.22%   21.54%
Total fees and income from services, net   1,003,569    1,076,798    7.30%   514,225    522,698    554,100    6.01%   7.75%
Other operating income                                        
Derivatives FX contracts   39,267    100,724    156.51%   18,740    49,389    51,335    3.94%   173.93%
Net foreign exchange   77,321    90,010    16.41%   45,721    54,209    35,801    -33.96%   -21.70%
Hedging   (13,761)   (6,382)   -53.62%   (6,906)   (7,887)   1,505    -119.08%   -121.79%
Operating leases   185,156    195,900    5.80%   104,571    102,551    93,349    -8.97%   -10.73%
Gains (or losses) on sale of assets   (1,520)   6,248    511.05%   7,242    14,503    (8,255)   -156.92%   -213.99%
Other reversals   7,947    1,736    -78.16%   6,566    1,066    670    -37.15%   -89.80%
Total other operating income   294,410    388,236    31.87%   175,934    213,831    174,405    -18.44%   -0.87%
Dividends received and equity method                                        
Dividends   35,416    20,209    -42.94%   8,588    9,967    10,242    2.76%   19.26%
Equity investments   10,851    57,528    430.16%   5,847    10,203    47,325    363.83%   709.39%
Equity method   67,159    51,939    -22.66%   23,776    33,727    18,212    -46.00%   -23.40%
Total Dividends received and equity method   113,426    129,676    14.33%   38,211    53,897    75,779    40.60%   98.32%
Total income   3,823,076    4,400,681    15.11%   1,972,331    2,240,974    2,159,707    -3.63%   9.50%

 

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2Q15

 

INCOME STATEMENT  As of   Growth               Growth 
(COP million)   Jun-14    Jun-15    Jun-15/Jun-14    2Q14    1Q15    2Q15    2Q15/1Q15    2Q15/2Q14 
Operating expenses                                        
Salaries and employee benefits   (800,678)   (928,726)   15.99%   (396,895)   (464,024)   (464,702)   0.15%   17.08%
Bonuses   (100,826)   (134,724)   33.62%   (49,611)   (52,672)   (82,052)   55.78%   65.39%
Administration and general expenses   (886,157)   (953,783)   7.63%   (444,010)   (472,433)   (481,350)   1.89%   8.41%
Contributions and other tax burden   (216,597)   (225,895)   4.29%   (114,627)   (107,291)   (118,604)   10.54%   3.47%
Depreciation and amortization   (202,436)   (209,435)   3.46%   (109,361)   (104,785)   (104,650)   -0.13%   -4.31%
Total operating expenses   (2,206,694)   (2,452,563)   11.14%   (1,114,504)   (1,201,205)   (1,251,358)   4.18%   12.28%
Net operating income   1,616,382    1,948,118    20.52%   857,827    1,039,769    908,349    -12.64%   5.89%
Other income (expenses)                                        
Other income   170,103    131,828    -22.50%   84,390    68,089    63,739    -6.39%   -24.47%
Other expenses   (129,232)   (116,469)   -9.88%   (76,800)   (42,301)   (74,168)   75.33%   -3.43%
Total other income (expenses)   40,871    15,359    -62.42%   7,590    25,788    (10,429)   -140.44%   -237.40%
Profit before tax   1,657,253    1,963,477    18.48%   865,417    1,065,557    897,920    -15.73%   3.76%
Income tax   (423,181)   (467,892)   10.57%   (226,140)   (264,556)   (203,336)   -23.14%   -10.08%
Tax on wealth   -    (162,302)   0.00%   -    (162,302)   -    -100.00%   0.00%
Net income before non-controlling interest   1,234,072    1,333,283    8.04%   639,277    638,699    694,584    8.75%   8.65%
Non-controlling interest   (26,327)   (32,959)   25.19%   (22,282)   (23,772)   (9,187)   -61.35%   -58.77%
Net income before Descontinued Operations   1,207,745    1,300,324    7.67%   616,995    614,927    685,397    11.46%   11.09%
Discontinued Operations Net Income   25,509    20,900    -18.07%   4,539    11,315    9,585    -15.29%   111.17%
Net income   1,233,254    1,321,224    7.13%   621,534    626,242    694,982    10.98%   11.82%

 

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2Q15

 

APPENDIX

 

The following table summarizes the consolidated Balance Sheet and Income Statements including Tuya S.A. as an ongoing operation.

 

CONSOLIDATED BALANCE SHEET            
AND INCOME STATEMENT  Quarter   Growth 
(COP millions)  2Q14   1Q15   2Q15   2Q15/1Q15   2Q15/2Q14 
ASSETS                         
Loans   100,745,428    120,155,760    122,908,243    2.29%   22.00%
Investments   11,339,303    13,368,676    12,824,160    -4.07%   13.09%
Other assets   17,426,671    22,957,396    22,481,021    -2.08%   29.00%
Total assets   129,511,402    156,481,832    158,263,328    1.14%   22.20%
                          
LIABILITIES AND SHAREHOLDERS' EQUITY                         
Deposits   84,242,990    98,688,452    98,606,641    -0.08%   17.05%
Other liabilities   29,537,091    39,881,700    41,055,588    2.94%   39.00%
Total liabilities   113,780,081    138,570,152    139,662,229    0.79%   22.75%
Shareholders' equity   15,731,321    17,911,680    18,601,099    3.85%   18.24%
Total liabilities and shareholders' equity   129,511,402    156,481,832    158,263,328    1.14%   22.20%
                          
Interest income   2,344,354    2,749,212    2,807,471    2.12%   19.75%
Interest expense   (770,456)   (910,639)   (958,659)   5.27%   24.43%
Net interest income   1,573,898    1,838,573    1,848,812    0.56%   17.47%
Net provisions   (322,616)   (373,357)   (496,547)   33.00%   53.91%
Fees and income from service, net   531,582    540,857    573,199    5.98%   7.83%
Other operating income   175,981    213,841    174,418    -18.44%   -0.89%
Total Dividends received and equity method   38,289    53,996    75,866    40.50%   98.14%
Total operating expense   (1,198,434)   (1,290,249)   (1,334,615)   3.44%   11.36%
Total other income (expenses)   73,909    102,515    65,020    -36.58%   -12.03%
Profit before tax   872,609    1,086,176    906,153    -16.57%   3.84%
Income tax   (228,793)   (273,860)   (201,984)   -26.25%   -11.72%
Tax on wealth   -    (162,302)   -    -100.00%   0.00%
Net income   643,816    650,014    704,169    8.33%   9.37%
Non-controlling interest   (22,282)   (23,772)   (9,187)   -61.35%   -58.77%
Net income attributable to the owners of the parent company    621,534    626,242    694,982    10.98%   11.82%

 

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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:  August 13, 2015  By:   /s/  JAIME ALBERTO VELÁSQUEZ B.
    Name:   Jaime Alberto Velásquez B.
    Title:   Vice President of Strategy and Finance