Filed by Bowne Pure Compliance
 
 
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 January, 2009.
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-                    .
 
 

 

 

 

(BANCOLOMBIA LOGO)
BANCOLOMBIA S.A. ANNOUNCES UNCONSOLIDATED RESULTS
FOR THE MONTH OF DECEMBER 20081
Medellín, Colombia, January 30, 2009
Bancolombia S.A. (“Bancolombia”) reported unconsolidated net income of Ps. 62.3 billion in December 2008. Net income for Bancolombia on an unconsolidated basis totaled Ps.1,043.7 billion for the year ended December 31, 2008, increasing 29.8% as compared to the same period of 2007.
  •  
Net interest income, including investment securities, totaled Ps. 259.5 billion in December 2008. For the year ended December 31, 2008, net interest income totaled Ps. 2,599.2 billion, increasing 35.4% as compared to the same period last year.
 
  •  
Net fees and income from services in December 2008 totaled Ps. 85.1 billion. For the year ended December 31, 2008, net fees and income from services totaled Ps. 799.9 billion, which represents an increase of 18.0% as compared to the same period of 2007.
 
  •  
Other operating income totaled Ps.7.7 billion in December 2008. For the year ended December 31, 2008, other operating income totaled Ps. 553.9 billion increasing 63.6% as compared to the same period last year. Bancolombia notes that a considerable part of this revenue comes from dividend income received from subsidiaries, which is eliminated in the consolidated results as it is an intercompany transaction. As a result, this dividend income is only recorded in Bancolombia’s unconsolidated results. In addition, other operating income for the month of December was affected by rule changes concerning the valuation of derivatives to be followed by the entities under the supervision of the Superintendencia Financiera de Colombia (“Colombian Superintendency of Finance”). See additional information below.
 
  •  
Net provisions totaled Ps. 127.9 billion in December 2008. Net provisions totaled Ps. 751.1 billion for the year ended December 31, 2008, which represents an increase of 136.2% as compared to the same period of 2007. Bancolombia’s (unconsolidated) level of past due loans (i.e. loans overdue for more than 30 days) as a percentage of total loans amounted to 3.53% as of December 31, 2008, and the ratio of allowances to past due loans increased to 143.1% as of the same date.
 
  •  
Operating expenses totaled Ps. 211.9 billion in December 2008. For the year ended December 31, 2008, operating expenses totaled Ps. 1,800.3 billion, increasing 16.3% as compared to the same period of 2007.
Total assets (unconsolidated) amounted to Ps. 39.4 trillion, loans amounted to Ps. 27.9 trillion, deposits totaled Ps. 25.3 trillion and Bancolombia’s total shareholders’ equity amounted to Ps. 5.9 trillion.
Market Share
According to ASOBANCARIA (Colombia’s national banking association),Bancolombia’s market share of the Colombian financial system as of December 2008, was as follows: 19.1% of total deposits, 21.8% of total net loans, 21.0% of total savings accounts, 22.1% of total checking accounts and 14.8% of total time deposits.
 
     
1  
This report corresponds to the unconsolidated financial statements of Bancolombia. The numbers contained herein are subject to review by the relevant Colombian authorities. This information has been prepared in accordance with generally accepted accounting principles in Colombia and is stated in nominal terms.

 

 

 

(BANCOLOMBIA LOGO)
RULE CHANGES CONCERNING VALUATION METHODOLOGIES FOR DERIVATIVE INSTRUMENTS
In 2008, the Colombian Superintendency of Finance issued external circulars 025, 030, 044 and 063 (the “2008 External Circulars”) establishing new guidelines for the valuation of derivatives and structured products to be followed by entities under its supervision. External circular 025 amended chapter XVIII of the Circular Básica Contable y Financiera
In accordance with the 2008 External Circulars, Bancolombia modified the methodology by which it values its portfolio of derivatives and structured products. As a result of this change, Bancolombia’s balance sheet and financial results have been impacted as follows:
  •  
A reduction in the carrying value of derivatives totaling Ps. 145 billion (approximately US $60.8 million2) was recorded for the 2008 fiscal year, resulting in a reduction on income. After this reduction, income from derivative financial instruments for the year ended December 31, 2008 totaled Ps. 139.1 billion (approximately US $58.3 million).
 
  •  
An additional reduction of Ps. $135 billion (approximately US$56.6 million) in the carrying value of derivatives will be recorded in 2009, resulting in a reduction on income that will be amortized daily, in equal installments, during the first six months of 2009.
The complete text of the 2008 External Circulars, can be downloaded from the web site of the Colombian Superintendency of Finance (http://www.superfinanciera.gov.co/), in the “Establecimientos de credito"— “Normativa” section.
(CONTACT GRAPHIC)
 
     
2  
Exchange Rate for January 30, 2009: $1 = Ps. 2,386.58.

 

 

 

(BANCOLOMBIA LOGO)
                                                 
BANCOLOMBIA S.A.                           Growth  
BALANCE SHEET           As of             Dec08/Nov08     Annual  
(Ps Millions)   Dec-07     Nov-08     Dec-08     $     %     %  
ASSETS
                                                
Cash and due from banks
     2,181,250       2,788,113       2,529,017       -259,096       -9.29 %     15.94 %
Overnight funds sold
     1,300,330       367,914       1,134,172       766,258       208.27 %     -12.78 %
Total cash and equivalents
     3,481,580       3,156,027       3,663,189       507,162       16.07 %     5.22 %
 
                                    
Debt securities
     3,852,076       4,029,382       4,426,643       397,261       9.86 %     14.92 %
Trading
     1,551,223       1,461,075       1,707,142       246,067       16.84 %     10.05 %
Available for Sale
     1,274,563       1,150,214       1,157,908       7,694       0.67 %     -9.15 %
Held to Maturity
     1,026,290       1,418,093       1,561,593       143,500       10.12 %     52.16 %
Equity securities
     983,796       1,115,404       1,398,326       282,922       25.36 %     42.14 %
Trading
     8,335       26,078       284,523       258,445       991.05 %     3313.59 %
Available for Sale
     975,461       1,089,326       1,113,803       24,477       2.25 %     14.18 %
Market value allowance
     -29,802       -18,512       -18,541       -29       0.16 %     -37.79 %
Net investment securities
     4,806,070       5,126,274       5,806,428       680,154       13.27 %     20.81 %
 
                                    
Commercial loans
     17,411,943       21,377,101       21,592,420       215,319       1.01 %     24.01 %
Consumer loans
     3,654,977       3,897,701       3,863,350       -34,351       -0.88 %     5.70 %
Small business loans
     111,382       127,210       126,372       -838       -0.66 %     13.46 %
Mortgage loans
     1,923,883       2,407,017       2,327,127       -79,890       -3.32 %     20.96 %
Allowance for loans and financial leases losses
     -933,933       -1,267,497       -1,405,229       -137,732       10.87 %     50.46 %
Net total loans and financial leases
     22,168,252       26,541,532       26,504,040       -37,492       -0.14 %     19.56 %
 
                                    
Accrued interest receivable on loans
     305,561       407,621       408,226       605       0.15 %     33.60 %
Allowance for accrued interest losses
     -23,144       -26,715       -30,464       -3,749       14.03 %     31.63 %
Net total interest accrued
     282,417       380,906       377,762       -3,144       -0.83 %     33.76 %
 
                                    
Customers’ acceptances and derivatives
     196,565       364,511       285,069       -79,442       -21.79 %     45.03 %
Net accounts receivable
     403,158       527,873       446,815       -81,058       -15.36 %     10.83 %
Net premises and equipment
     484,625       635,021       671,587       36,566       5.76 %     38.58 %
Foreclosed assets
     7,656       4,302       4,143       -159       -3.70 %     -45.89 %
Prepaid expenses and deferred charges
     52,271       75,264       68,813       -6,451       -8.57 %     31.65 %
Goodwill
     12,509       2,258       1,841       -417       -18.47 %     -85.28 %
Other
     167,811       371,596       227,879       -143,717       -38.68 %     35.80 %
Reappraisal of assets
     1,132,917       1,308,413       1,357,553       49,140       3.76 %     19.83 %
 
                                    
Total assets
     33,195,831       38,493,977       39,415,119       921,142       2.39 %     18.74 %
 
                                    
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                                
LIABILITIES
                                                
DEPOSITS
                                                
Non-interest bearing
     5,296,429       4,483,568       5,320,992       837,424       18.68 %     0.46 %
Checking accounts
     4,816,714       4,092,641       4,930,757       838,116       20.48 %     2.37 %
Other
     479,715       390,927       390,235       -692       -0.18 %     -18.65 %
 
                                    
Interest bearing
     15,832,665       19,556,974       19,978,873       421,899       2.16 %     26.19 %
Checking accounts
     515,370       575,216       707,816       132,600       23.05 %     37.34 %
Time deposits
     4,590,843       6,664,102       6,852,631       188,529       2.83 %     49.27 %
Savings deposits
     10,726,452       12,317,656       12,418,426       100,770       0.82 %     15.77 %
 
                                    
Total deposits
     21,129,094       24,040,542       25,299,865       1,259,323       5.24 %     19.74 %
Overnight funds
     1,164,019       598,530       1,077,180       478,650       79.97 %     -7.46 %
Bank acceptances outstanding
     53,724       89,008       55,864       -33,144       -37.24 %     3.98 %
Interbank borrowings
     733,986       1,002,218       1,043,014       40,796       4.07 %     42.10 %
Borrowings from domestic development banks
     1,551,102       1,831,651       1,829,255       -2,396       -0.13 %     17.93 %
Accounts payable
     1,287,010       1,648,116       1,327,300       -320,816       -19.47 %     3.13 %
Accrued interest payable
     146,134       205,790       211,678       5,888       2.86 %     44.85 %
Other liabilities
     326,911       348,165       406,111       57,946       16.64 %     24.23 %
Bonds
     1,625,704       2,200,881       2,148,993       -51,888       -2.36 %     32.19 %
Accrued expenses
     111,749       753,700       113,711       -639,989       -84.91 %     1.76 %
 
                                    
Total liabilities
     28,129,433       32,718,601       33,512,971       794,370       2.43 %     19.14 %
 
                                    
SHAREHOLDER’S EQUITY
                                                
Subscribed and paid in capital
     393,914       393,914       393,914       —       0.00 %     0.00 %
 
                                    
Retained earnings
     3,110,017       3,643,887       3,706,200       62,313       1.71 %     19.17 %
Appropiated
     2,305,756       2,662,531       2,662,531       —       0.00 %     15.47 %
Unappropiated
     804,261       981,356       1,043,669       62,313       6.35 %     29.77 %
 
                                    
Reappraisal and others
     1,592,129       1,767,800       1,816,942       49,142       2.78 %     14.12 %
Gross unrealized gain or loss on debt securities
     (29,662 )     (30,225 )     (14,908 )     15,317       -50.68 %     -49.74 %
 
                                    
Total shareholder’s equity
     5,066,398       5,775,376       5,902,148       126,772       2.20 %     16.50 %
 
                                    
Total liabilities and shareholder’s equity
     33,195,831       38,493,977       39,415,119       921,142       2.39 %     18.74 %
 
                                    

 

 

 

(BANCOLOMBIA LOGO)
                                                 
BANCOLOMBIA S.A.                   Growth                     Growth  
INCOME STATEMENT   Accumulated     Annual     Month     Month  
(Ps Millions)   Dec-07     Dec-08     %     Nov-08     Dec-08     %  
Interest income and expenses
                                                
Interest on loans
     2,703,612       3,767,241       39.34 %     345,257       374,819       8.56 %
Interest on investment securities
     250,624       309,518       23.50 %     36,422       29,984       -17.68 %
Overnight funds
     58,100       55,953       -3.70 %     5,540       5,472       -1.23 %
Total interest income
     3,012,336       4,132,712       37.19 %     387,219       410,275       5.95 %
 
                                    
Interest expense Checking accounts
     16,880       17,563       4.05 %     1,895       2,454       29.50 %
Time deposits
     304,948       558,592       83.18 %     54,725       52,736       -3.63 %
Savings deposits
     457,703       572,737       25.13 %     54,998       57,652       4.83 %
Total interest on deposits
     779,531       1,148,892       47.38 %     111,618       112,842       1.10 %
 
                                    
Interbank borrowings
     62,103       33,009       -46.85 %     5,904       3,257       -44.83 %
Borrowings from domestic development banks
     70,439       111,437       58.20 %     10,220       10,902       6.67 %
Overnight funds
     88,831       74,780       -15.82 %     2,778       5,269       89.67 %
Bonds
     92,459       165,384       78.87 %     18,383       18,521       0.75 %
Total interest expense
     1,093,363       1,533,502       40.26 %     148,903       150,791       1.27 %
 
                                    
Net interest income
     1,918,973       2,599,210       35.45 %     238,316       259,484       8.88 %
Provision for loan and accrued interest losses, net
     (424,362 )     (851,765 )     100.72 %     (137,978 )     (141,182 )     2.32 %
Recovery of charged-off loans
     63,490       62,376       -1.75 %     5,052       6,885       36.28 %
Provision for foreclosed assets and other assets
     (27,556 )     (15,512 )     -43.71 %     (282 )     (1,642 )     482.27 %
Recovery of provisions for foreclosed assets and other assets
     70,462       53,834       -23.60 %     1,115       8,045       621.52 %
 
                                    
Total net provisions
     (317,966 )     (751,067 )     136.21 %     (132,093 )     (127,894 )     -3.18 %
Net interest income after provision for loans and accrued interest losses
     1,601,007       1,848,143       15.44 %     106,223       131,590       23.88 %
 
                                    
Commissions from banking services and other services
     102,074       117,938       15.54 %     6,750       15,464       129.10 %
Electronic services and ATM’s fees, net
     73,972       78,796       6.52 %     6,279       7,727       23.06 %
Branch network services, net
     98,811       97,863       -0.96 %     7,672       9,798       27.71 %
Collections and payments fees, net
     112,617       139,023       23.45 %     11,129       13,241       18.98 %
Credit card merchant fees, net
     19,572       14,547       -25.67 %     1,411       4,097       190.36 %
Credit and debit card fees, net
     257,131       326,083       26.82 %     26,200       31,215       19.14 %
Checking fees, net
     66,885       67,463       0.86 %     5,076       6,265       23.42 %
Check remittance, net
     10,316       12,041       16.72 %     820       1,102       34.39 %
International operations, net
     33,091       37,430       13.11 %     3,299       3,519       6.67 %
Total fees and other service income
     774,469       891,184       15.07 %     68,636       92,428       34.66 %
 
                                    
Other fees and service expenses
     (96,452 )     (91,230 )     -5.41 %     (6,905 )     (7,279 )     5.42 %
Total fees and income from services, net
     678,017       799,954       17.98 %     61,731       85,149       37.94 %
 
                                    
Other operating income
                                                
Net foreign exchange gains
     38,296       96,701       152.51 %     (3,331 )     7,650       329.66 %
Derivative Financial Instruments
     139,700       139,102       -0.43 %     81,646       (49,737 )     -160.92 %
Gains(Loss) on sales of investments on equity securities
     (13,254 )     80,828       709.84 %     —       45,145       *  
Securitization income
     50,377       41,080       -18.46 %     2,164       4,568       111.09 %
Dividend income
     122,127       194,851       59.55 %     36       —       *  
Communication, rent payments and others
     1,398       1,349       -3.51 %     99       119       20.20 %
Total other operating income
     338,644       553,911       63.57 %     80,614       7,745       -90.39 %
 
                                    
Total income
     2,617,668       3,202,008       22.32 %     248,568       224,484       -9.69 %
Operating expenses
                                                
Salaries and employee benefits
     608,013       688,279       13.20 %     55,387       93,163       68.20 %
Bonus plan payments
     54,614       82,198       50.51 %     5,963       (14,789 )     -348.01 %
Compensation
     22,244       21,649       -2.67 %     1,115       1,202       7.80 %
Administrative and other expenses
     734,259       870,006       18.49 %     69,361       100,640       45.10 %
Deposit security, net
     40,673       40,279       -0.97 %     2,493       2,493       0.00 %
Donation expenses
     11,129       24,178       117.25 %     47       20,931       44434.04 %
Depreciation
     76,861       73,725       -4.08 %     6,020       8,279       37.52 %
Total operating expenses
     1,547,793       1,800,314       16.31 %     140,386       211,919       50.95 %
 
                                    
Net operating income
     1,069,876       1,401,694       31.01 %     108,182       12,565       -88.39 %
Merger expenses
     —       —       0.00 %     —       —       0.00 %
Goodwill amortization
     27,655       10,668       -61.42 %     417       417       0.00 %
Non-operating income (expense)
                                                
Other income
     62,080       105,530       69.99 %     2,707       48,055       1675.21 %
Other expense
     (64,789 )     (107,510 )     65.94 %     (9,775 )     3,346       134.23 %
Total non-operating income
     (2,710 )     (1,980 )     -26.93 %     (7,068 )     51,401       827.24 %
Income before income taxes
     1,039,511       1,389,046       33.62 %     100,697       63,549       -36.89 %
Income tax expense
     (235,250 )     (345,377 )     46.81 %     (13,805 )     (1,236 )     -91.05 %
 
                                    
Net income
     804,261       1,043,669       29.77 %     86,892       62,313       -28.29 %
 
                                    

 

 

 

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: January 30, 2009  By:   /s/ JAIME ALBERTO VELÁSQUEZ B.    
    Name:   Jaime Alberto Velásquez B.   
    Title:   Vice President of Finance