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 March, 2016

 

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-                    .

 

 

 

 

   
  4Q15

 

BANCOLOMBIA S.A. (NYSE: CIB; BVC: BCOLOMBIA, PFBCOLOM) REPORTS CONSOLIDATED NET INCOME OF COP 656 BILLION FOR THE FOURTH QUARTER OF 2015, WHICH REPRESENTS A 21.3% INCREASE COMPARED TO 3Q15 AND 2,519 BILLION FOR THE YEAR, WHICH REPRESENTS A 5.5% INCREASE COMPARED TO 2014.

 

·Net loan portfolio increased 27.2% during 2015 and 9.3% in 4Q15. 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, and the incorporation of BAM at the end of December.

 

·Net interest income grew 20.4% during 2015, and 13.6% in 4Q15 compared to 4Q14. This growth is explained by greater volumes in net loans and by a stable NIM.

 

·Net Fees increased by 9.2% in 2015, and 2.2% in 4Q15 compared to 4Q14. This notable growth was mainly driven by an increase in fees related to credit and debit cards, banking services and by the distribution of insurance products through the bank’s network.

 

·Net provisions increased 92.7% during 2015 but were offset by the solid growth in net interest income. This increase in provisions is explained by specific defaults related to a few corporate clients and to some deterioration in the consumer segment.

 

·Operating income, after provisions, grew 11.1% during 2015 and 3.1% during 4Q15.

 

·Efficiency in 2015 was 54.6%, which improved when compared to 56.3% in 2014.

 

·The balance sheet remains strong. 90-day past due loans at the end 2015 were 1.8% of total gross loans (3.0% for 30 days) and the coverage ratio for these past due loans was 209% (115% for 30 days). The solvency ratio was 12.5% with a Tier 1 of 7.5%.

 

March 9, 2016. Medellín, Colombia – Today, BANCOLOMBIA S.A. (“Bancolombia” or “the Bank”) announced its earnings results for the fourth quarter of 20151. For the quarter ended on December 31, 2015 (“4Q15”), Bancolombia reported consolidated net income of COP 656 billion, or COP 698.6 per share - USD 0.89 per ADR. This net income represents a 28.2% increase compared to the quarter ended on September 30, 2015 (“3Q15”) and a 15.6% increase compared to the quarter ended on December 31, 2014 (“4Q14”).

 

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

 

 

1. This report corresponds to the interim unaudited consolidated financial statements of BANCOLOMBIA S.A. and its subsidiaries (“BANCOLOMBIA” or “The Bank”) which Bancolombia controls, amongst others, by owning directly or indirectly, more than 50% of the voting capital stock. These financial statements have been prepared in accordance with International Financial Reporting Standards – IFRS. BANCOLOMBIA maintains accounting records in Colombian pesos, referred to herein as “Ps.” or “COP”. The statements of income for the quarter ended December 31, 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, January 1, 2016 $3149.47 = US$ 1

 

 1

 

 

   
  4Q15

 

BANCOLOMBIA: Summary of consolidated financial quarterly results

CONSOLIDATED BALANCE SHEET            
AND INCOME STATEMENT  Quarter   Growth 
(COP millions)  4Q14   3Q15   4Q15   4Q15/3Q15   4Q15/4Q14 
ASSETS                         
Net Loans   110,384,396    128,486,302    140,371,884    9.25%   27.17%
Investments   12,784,223    12,986,738    14,277,824    9.94%   11.68%
Other assets   26,461,262    33,402,333    38,323,159    14.73%   44.83%
Total assets   149,629,881    174,875,373    192,972,867    10.35%   28.97%
                          
LIABILITIES AND SHAREHOLDERS' EQUITY                         
Deposits   95,145,277    109,368,791    122,202,090    11.73%   28.44%
Other liabilities   37,118,124    45,655,237    50,362,858    10.31%   35.68%
Total liabilities   132,263,401    155,024,028    172,564,948    11.31%   30.47%
Non-controlling interest   494,573    540,458    1,128,470    108.80%   128.17%
Shareholders' equity   16,871,907    19,310,887    19,279,449    -0.16%   14.27%
Total liabilities and shareholders' equity   149,629,881    174,875,373    192,972,867    10.35%   28.97%
                          
Interest income   2,531,632    2,811,019    3,088,030    9.85%   21.98%
Interest expense   (839,110)   (1,039,190)   (1,165,072)   12.11%   38.85%
Net interest income   1,692,522    1,771,829    1,922,958    8.53%   13.61%
Net provisions   (43,048)   (491,034)   (459,596)   -6.40%   967.64%
Fees and income from service, net   494,838    512,845    505,699    -1.39%   2.19%
Other operating income   281,012    325,539    377,671    16.01%   34.40%
Total Dividends received and equity method   (55,384)   (14,490)   96,388    -765.20%   -274.04%
Total operating expense   (1,551,090)   (1,486,850)   (1,626,499)   9.39%   4.86%
Profit before tax   818,850    617,839    816,621    32.17%   -0.27%
Income tax   (217,529)   (82,454)   (98,904)   19.95%   -54.53%
Net income before non-controlling interest   601,321    535,385    717,717    34.06%   19.36%
Non-controlling interest   (20,179)   (11,297)   (45,752)   304.99%   126.73%
Net income before Descontinued Operations   581,142    524,088    671,965    28.22%   15.63%
Discontinued Operations Net Income   10,998    17,226    (15,613)   -190.64%   -241.96%
Net income   592,140    541,314    656,352    21.25%   10.84%

 

   Quarter   As of 
PRINCIPAL RATIOS  4Q14   3Q15   4Q15   4Q14   4Q15 
PROFITABILITY                         
Net interest margin (1) from continuing operations   5.71%   5.00%   5.11%   5.30%   5.25%
Return on average total assets (2) from continuing operations   1.65%   1.25%   1.51%   1.72%   1.53%
Return on average shareholders´ equity (3)   14.19%   11.16%   13.83%   14.81%   13.62%
EFFICIENCY                         
Operating expenses to net operating income   64.28%   57.28%   56.03%   56.30%   54.57%
Operating expenses to average total assets   4.39%   3.55%   3.65%   3.80%   3.62%
Operating expenses to productive assets   5.24%   4.20%   4.32%   4.51%   4.28%
CAPITAL ADEQUACY                         
Shareholders' equity to total assets   11.25%   11.04%   9.96%          
Technical capital to risk weighted assets        13.23%   12.46%          
KEY FINANCIAL HIGHLIGHTS                         
Net income per ADS from continuing operations   1.01    0.71    0.89           
Net income per share $COP from continuing operations   604.21    544.89    698.63           
P/BV ADS (4)   1.63    1.24    1.05           
P/BV Local (5) (6)   1.58    1.18    1.05           
P/E (7) from continuing operations   11.63    11.13    7.52           
ADR price   47.88    32.20    26.75           
Common share price (8)   27,640    23,720    20,980           
Weighted average of Preferred Shares outstanding (9)   961,827,000    961,827,000    961,827,000           
USD exchange rate (quarter end)   2,392.46    3,086.75    3,149.47           

 

 

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

 

 2

 

 

   
  4Q15

 

1.BALANCE SHEET

 

1.1.Assets

 

As of December 31, 2015, Bancolombia’s assets totaled COP 192,973 billion, which represents an increase of 10.4% compared to 3Q15 and of 28.9% compared to 4Q14. Of the annual growth in the loan book, 13.7% is explained by the depreciation of the peso against the dollar and 7.8% is explained by the incorporation of BAM (see section 3- Recent Developments).

 

The increase in assets in the quarter and in the year was explained by the organic growth of the loan portfolio as well as by a depreciation of the COP versus the USD of 2.0% during the quarter and 31.6% over the past 12 months.

 

1.2.Loan Portfolio

 

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

 

(COP Million)  Amounts in COP   Amounts in USD converted to COP   Amounts in USD (thousands)   Total 
(1 USD = 3149.47 COP)      4Q15/3Q15       4Q15/3Q15       4Q15/3Q15       4Q15/3Q15 
Commercial loans   61,691,738    2.70%   42,667,477    20.66%   13,547,510    18.26%   104,359,215    9.36%
Consumer loans   12,679,258    3.13%   8,712,236    14.32%   2,766,255    12.05%   21,391,494    7.42%
Mortgage loans   10,741,095    4.07%   8,240,546    17.29%   2,616,487    14.96%   18,981,641    9.43%
Small  business loans   592,826    1.70%   296,331    18.77%   94,089    16.41%   889,157    6.81%
Interests paid in advance   (868)   -95.94%   -    -100.00%   -    -100.00%   (868)   -96.44%
Gross loans   85,704,049    2.95%   59,916,590    19.23%   19,024,341    16.85%   145,620,639    9.08%

 

The most relevant aspects regarding the evolution of the loan portfolio during 4Q15 were:

 

·The growth of commercial and mortgage loans during 4Q15 shows a growing credit demand in COP denominated loans compared to previous quarters, spurred by specific disbursements to large corporate clients. Consumer loans grew over the quarter in line with seasonal factors.

 

·Mortgage loans denominated in COP presented a dynamic performance, growing 4.1% 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 currencies different from COP from our operation in El Salvador, Panama and Guatemala accounted for 43% of the mortgage loans at the end of 4Q15.

 

·Total reserves (allowances in the balance sheet) for loan losses increased by 4.7% during 4Q15 and totaled COP 5,249 billion, equivalent to 3.6% of gross loans at the end of the quarter. For further explanation regarding coverage of the loan portfolio and credit quality trends, (see section 2.4. Asset Quality, Provision Charges and Balance Sheet Strength).

 

The following table summarizes Bancolombia’s total loan portfolio:

 

LOAN PORTFOLIO                        
(COP million)  4Q14   3Q15   4Q15   4Q15/3Q15   4Q15/4Q14   % of total loans 
Commercial   79,842,336    95,428,717    104,359,215    9.36%   30.71%   71.7%
Consumer   19,171,153    19,914,725    21,391,494    7.42%   11.58%   14.7%
Mortgage   15,500,766    17,346,337    18,981,641    9.43%   22.46%   13.0%
Microcredit   659,868    832,439    889,157    6.81%   34.75%   0.6%
Interests received in advance   (470)   (24,414)   (868)   -96.44%   84.68%   0.0%
Total loan portfolio   115,173,653    133,497,804    145,620,639    9.08%   26.44%   100.0%
Allowance for loan losses   (4,789,257)   (5,011,502)   (5,248,755)   4.73%   9.59%     
Total loans, net   110,384,396    128,486,302    140,371,884    9.25%   27.17%     

 

 3

 

 

   
  4Q15

  

1.3.Investment Portfolio

 

As of December 31, 2015, Bancolombia’s net investment portfolio totaled COP 14,278 billion, increasing 9.9% compared to the figure reported in 3Q15 and growing 11.7% compared to 4Q14. This quarterly increase is explained by the bank's strategy of increasing its time deposits in the last months of the year and investing its excess of cash in liquid assets. The investment portfolio consists primarily of debt securities, which represent 67.6% of Bancolombia’s total investments and 5.0% of assets at the end of 4Q15.

 

At the end of 4Q15, the investments in debt securities had a duration of 18.9 months and a yield to maturity of 6.52%.

 

1.4.Goodwill and intangibles

 

As of 4Q15, Bancolombia’s goodwill and intangibles totaled COP 7,092 billion, increasing 23.8% compared to 3Q15. This variation is explained by the consolidation of BAM which increased goodwill by COP 735 billion, and by the depreciation of the COP against the USD during the quarter.

 

1.5.Funding

 

As of December 31, 2015, Bancolombia’s liabilities totaled COP 172,565 billion, increasing 11.3% with respect to 3Q15 and 30.5% compared to 4Q14. Of this annual growth, 14.7% is explained by the depreciation of the COP against the USD and 8.6% is explained by the consolidation of BAM (see section 3 – Recent Developments).

 

Deposits by customers totaled COP 121,802 billion (or 70.6% of liabilities) at the end of 4Q15, increasing 11.8% during the quarter and 28.5% over the last 12 months. The net loans to deposits ratio (including borrowings from domestic development banks) was 110% at the end of 4Q15, which marks a decrease in comparison to the 112% reported in 3Q15, decreasing in regard to the 111% reported in 4Q14.

 

Bancolombia’s funding strategy during the quarter was based on increasing its stock of deposits in order to increase its disposable resources at year end, while maintaining a solid liquidity position. This strategy, added to the Central Bank’s rate hikes, increased the cost of deposits during the quarter.

 

Funding mix  4Q14   3Q15   4Q15 
COP Million                    
Checking accounts   18,147,025    15%   18,929,039    13%   23,646,578    15%
Saving accounts   39,129,999    31%   43,976,398    30%   47,813,680    29%
Time deposits   36,105,096    29%   44,918,448    31%   48,713,789    30%
Other deposits   3,279,158    3%   2,469,584    2%   2,860,437    2%
Long term debt   13,825,185    11%   18,219,495    13%   19,435,865    12%
Loans with banks   14,294,192    11%   16,183,405    11%   20,121,246    12%
Total Funds   124,780,655    100%   144,696,369    100%   162,591,595    100%

 

 4

 

 

   
  4Q15

  

1.6.Shareholders’ Equity and Regulatory Capital

 

Shareholders’ equity at the end of 4Q15 was COP 19,279 billion, decreasing 0.2% or COP 31 billion, with respect to the COP 19,311 billion reported at the end of 3Q15.

 

Bancolombia’s capital adequacy ratio was 12.5% in 4Q15. This figure highlights the company’s solid capital position.

 

Bancolombia’s capital adequacy ratio was 346 basis points above the minimum 9% required by the Colombian regulator, while the basic capital ratio (Tier 1) to risk weighted assets was 7.51%, 301 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 6.41% at the end of 4Q15.

 

TECHNICAL CAPITAL RISK WEIGHTED ASSETS        
Consolidated (COP millions)  2Q15   %   3Q15   %   4Q15   % 
Basic capital (Tier I)   11,020,242    8.16%   11,998,960    7.95%   12,552,622    7.51%
Additional capital (Tier II)   7,425,582    5.50%   7,967,587    5.28%   8,268,887    4.95%
Technical capital (1)   18,445,824         19,966,548         20,821,509      
Risk weighted assets included market risk   135,079,386         150,873,028         167,168,400      
CAPITAL ADEQUACY (2)        13.66%        13.23%        12.46%

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

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

 

 5

 

 

   
  4Q15

  

2.INCOME STATEMENT

 

Net income totaled COP 656 billion in 4Q15, or COP 698.6 per share - USD 0.89 per ADR (excluding discontinued operations). This net income represents an increase of 21.3% compared to 3Q15 and of 10.8% compared to 4Q14. Bancolombia’s annualized ROE for 4Q15 was 13.8%.

 

2.1.Net Interest Income

 

Net interest income totaled COP 1,923 billion in 4Q15, 8.5% more than that reported in 3Q15, and 13.6% higher than the figure for 4Q14. The positive annual performance of this line was driven by higher volumes in loans and the depreciation of the COP versus the USD. The quarterly performance can be explained by higher levels of loans as well as the stability of the net interest margin.

 

During 4Q15, the investment, interest rate derivatives and repos portfolio generated COP 75,324 billion.

 

Net Interest Margin

 

The annualized net interest margin increased to 5.1% in 4Q15. The annualized net interest margin for investments was -0.5%, higher than the -1.2% of 3Q15 and the annualized net interest margin of the loan portfolio was 5.6%, which is equal to the 5.6% in 3Q15.

 

Annualized Interest            
Margin  4Q14   3Q15   4Q15 
Loans' Interest margin   5.7%   5.6%   5.6%
Debt investments' margin   5.6%   -1.2%   -0.5%
Net interest margin   5.7%   5.0%   5.1%

 

The funding cost increased during 4Q15 due to the increase in the reference rate of the Colombian Central Bank. Savings and checking accounts remained the same as a proportion of the total cost of funding presented last quarter, and the annualized average weighted cost of deposits was 2.47% in 4Q15, increasing 10 basis points compared to 3Q15.

 

Average weighted            
funding cost  4Q14   3Q15   4Q15 
Checking accounts   0.00%   0.00%   0.00%
Saving accounts   1.34%   1.36%   1.63%
Time deposits   4.08%   4.41%   4.41%
Total deposits   2.17%   2.37%   2.47%
Long term debt   6.51%   6.84%   6.36%
Loans with banks   3.73%   2.44%   2.46%
Total funding cost   2.74%   2.90%   2.92%

 

2.2.Fees and Income from Services

 

During 4Q15, net fees and income from services totaled COP 506 billion, decreasing 1.4% with respect to 3Q15 and increasing 2.2% with respect to 4Q14. Fees from credit and debit cards fell 8.3% compared to 3Q15 due to higher charges associated with loyalty programs for customers, however they increased 16.3% compared to 4Q14. Fees from asset management and trust services increased 0.3% compared to 3Q15 and 29.1% compared to 4Q14. Fees from our bancassurance business increased 29.7% compared to 3Q15, and grew 25.8% in respect to 4Q14.

 

 6

 

 

   
  4Q15

  

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

 

ACCUMULATED CREDIT CARD BILLING  %   2015 
(COP millions)  Nov-14   Nov-15   Growth   Market Share 
Bancolombia VISA   2,823,434    3,555,511    25.93%   8.31%
Bancolombia Mastercard   3,466,752    4,017,227    15.88%   9.39%
Bancolombia American Express   3,762,098    3,735,152    -0.72%   8.73%
Total Bancolombia   10,052,283    11,307,890    12.49%   26.44%
Colombian Credit Card Market   37,710,853    42,764,873    13.40%     

 

CREDIT CARD MARKET SHARE  %   2015 
(Outstanding credit cards)  Nov-14   Nov-15   Growth   Market Share 
Bancolombia VISA   492,222    592,854    20.44%   5.55%
Bancolombia Mastercard   640,487    739,876    15.52%   6.92%
Bancolombia American Express   706,792    659,952    -6.63%   6.17%
Total Bancolombia   1,839,501    1,992,682    8.33%   18.64%
Colombian Credit Card Market   10,079,577    10,690,977    6.07%     
Source: Superintendencia Financiera de Colombia     

 

2.3.Other Operating Income

 

Total other operating income was COP 378 billion in 4Q15, growing by 16.0% compared to 3Q15, and by 34.4% with respect to 4Q14.

 

Revenues aggregated in the operating leases line totaled COP 125 billion in 4Q15, and decreased by 2.0% compared to 3Q15 and increased by 32.1% compared to those reported in 4Q14.

 

The line “other” that was located into the section “other income (expenses)” was reclassified in the section “Other operating income”.

 

2.4.Asset Quality, Provision Charges and Balance Sheet Strength

 

Past due loans (those that are overdue for more than 30 days) totaled COP 4,188 billion at the end of 4Q15 and represented 3.0% of total gross loans, showing a slight decrease compared to 3Q15. Charge-offs totaled COP 357 billion in 4Q15.

 

The coverage, measured by the ratio of allowances for loans losses (principal) to PDLs (overdue 30 days), was 115.1% at the end of 4Q15, decreasing compared to 118.7% in 3Q15. Likewise, the coverage measured by the ratio of allowances for loans losses to loans classified as C, D and E, was 87% at the end of 4Q15, decreasing with respect to the 96.4% reported in 3Q15.

 

The deterioration of the loan portfolio (new past due loans including charge-offs) was COP 615 billion in 4Q15, which represented 0.5% of the loan portfolio at the beginning of the quarter.

 

Provision charges (net of recoveries) totaled COP 460 billion in 4Q15. Provisions as a percentage of the average gross loans were 1.3% for 4Q15.

 

 7

 

 

   
  4Q15

  

Bancolombia maintains a strong balance sheet supported on an adequate level of loan loss reserves. Allowances for loan losses totaled COP 4,823 billion, or 3.4% of total loans at the end of 4Q15. This proportion decreased in comparison to the 3.6% presented at the end of 3Q15.

 

The following tables present key metrics related to asset quality:

 

ASSET QUALITY  As of 
( COP millions)  3Q15   4Q15 
Total 30-day past due loans   3,930,436    4,188,287 
Allowance for loan losses (1)   4,664,533    4,823,393 
Past due loans to total loans   3.06%   2.98%
“C”, “D” and “E” loans as a percentage of total loans   3.77%   3.95%
Allowances to past due loans   118.68%   115.16%
Allowance for loan  losses as a percentage of “C”, “D” and “E” loans   96.38%   87.00%
Allowance for loan losses as a percentage of total loans   3.64%   3.43%

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

 

PDL Per Category      30 days 
   % Of loan Portfolio   3Q15   4Q15 
Commercial loans   72.6%   1.97%   2.08%
Consumer loans   14.8%   4.35%   4.74%
Microcredit   0.6%   7.75%   7.59%
Mortgage loans *   12.1%   6.24%   6.03%
PDL TOTAL        3.06%   2.98%

 

PDL Per Category      90 days 
   % Of loan Portfolio   3Q15   4Q15 
Commercial loans   72.6%   1.48%   1.33%
Consumer loans   14.8%   2.17%   3.06%
Microcredit   0.6%   5.02%   5.05%
Mortgage loans*   12.1%   2.82%   2.81%
PDL TOTAL        1.78%   1.79%

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

 

LOANS AND FINANCIAL LEASES CLASSIFICATION  3Q15   4Q15 
( COP millions)                
¨A¨ Normal   116,206,272    90.60%   127,370,372    90.65%
¨B¨ Subnormal   7,219,493    5.63%   7,585,730    5.40%
¨C¨ Deficient   2,284,106    1.78%   2,366,866    1.68%
¨D¨ Doubtful recovery   1,593,348    1.24%   1,684,517    1.20%
¨E¨ Unrecoverable   962,333    0.75%   1,492,441    1.07%
Total   128,265,552    100.00%   140,499,927    100.00%
Loans and financial leases classified as C, D and E as a percentage of total loans and financial leases   3.77%        3.94%     

 

 8

 

 

   
  4Q15

  

2.5.Operating Expenses

 

During 4Q15, operating expenses totaled COP 1,626 billion, increasing 9.4% with respect to 3Q15 and increasing 4.9% with respect to 4Q14.

 

Personnel expenses (salaries, bonus plan payments and compensation) totaled COP 583 billion in 4Q15, increasing 4.2% compared to 3Q15 and decreasing 6.3% compared to 4Q14.

 

During 4Q15, administrative expenses totaled COP 666 billion, increasing 17.9% compared to 3Q15 and increasing 20.4% as compared to 4Q14.

 

Depreciation and amortization expenses totaled COP 134 billion in 4Q15, decreasing 0.3% compared to 3Q15 and 8.9% compared to 4Q14.

 

In 4Q15, the tax on wealth was reclassified under “Operating expenses”.

 

As of December 31, 2015, Bancolombia had 34,390 employees, owned 1,276 branches, 5,080 ATMs, and served close to 11 million customers.

 

 9

 

 

   
  4Q15

  

3.RECENT DEVELOPMENTS

 

On December 30, 2015 Bancolombia Panama S.A., a subsidiary of Bancolombia, acquired an additional 20% of the common stock of Grupo Agromercantil Holding S.A. (“GAH”). This operation will represent a controlling stake of 60% in Grupo Agromercantil Holding S.A. (“GAH”), a Panamanian company that owns the Conglomerado Financiero Agromercantil of Guatemala, which includes among others, Banco Agromercantil of Guatemala (“BAM”).

 

The purchase price paid to the sellers is equal to USD 151,500,000 and is subject to adjustments based on the final profits for the fiscal year as determined by the audited consolidated financial statements of GAH as of December 31, 2015.

 

 10

 

 

   
  4Q15

  

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 11 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, Guatemala, 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: IR@bancolombia.com.co

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

Website: http://www.grupobancolombia.com/wps/portal/about-us/corporate-information/investor-relations/

 

 11

 

 

   
  4Q15

  

BALANCE SHEET              Growth         
(COP million)  Dec-14   Sep-15   Dec-15  

Dec-15 /

Sep-15

  

Dec-15 /

Dec-14

  

% of

Assets

  

% of

Liabilities

 
ASSETS                                   
Cash and balances at central bank   11,194,859    12,131,755    14,295,163    17.83%   27.69%   7.41%     
Interbank borrowings   969,657    1,408,283    999,220    -29.05%   3.05%   0.52%     
Reverse repurchase agreements and other similar secured lend   1,302,267    1,124,212    3,303,231    193.83%   153.65%   1.71%     
Investments   12,784,223    12,986,738    14,277,824    9.94%   11.68%   7.40%     
Derivative financial instruments - Assets   1,448,845    2,567,591    2,382,168    -7.22%   64.42%   1.23%     
Loans and advances to customers   115,173,653    133,497,804    145,620,639    9.08%   26.44%   75.46%     
Allowance for loan and lease losses   (4,789,257)   (5,011,502)   (5,248,755)   4.73%   9.59%   -2.72%     
Investment in associates and joint ventures   1,349,697    1,442,530    546,549    -62.11%   -59.51%   0.28%     
Goodwill and Intangible assets   4,585,849    5,729,720    7,092,255    23.78%   54.66%   3.68%     
Premises and equipment   2,646,321    2,792,387    3,241,562    16.09%   22.49%   1.68%     
Investment property   1,114,180    1,325,371    1,505,046    13.56%   35.08%   0.78%     
Prepayments   199,398    246,390    292,416    18.68%   46.65%   0.15%     
Tax receivables   279,202    909,157    899,485    -1.06%   222.16%   0.47%     
Deferred tax   187,737    546,625    170,482    -68.81%   -9.19%   0.09%     
Assets held for sale   97,744    1,901,480    1,950,808    2.59%   1895.83%   1.01%     
Other assets   1,085,506    1,276,832    1,644,774    28.82%   51.52%   0.85%     
Total assets   149,629,881    174,875,373    192,972,867    10.35%   28.97%   100.00%     
LIABILITIES AND SHAREHOLDERS' EQUITY                                   
LIABILITIES                                   
Deposit by customers   94,769,319    108,933,191    121,802,028    11.81%   28.52%   63.12%   70.58%
Interbank Deposits   375,958    435,600    400,062    -8.16%   6.41%   0.21%   0.23%
Derivative financial instrument - Liabilities   1,471,779    2,169,788    1,930,609    -11.02%   31.18%   1.00%   1.12%
Borrowings from other financial institutions   13,852,284    15,747,805    19,721,184    25.23%   42.37%   10.22%   11.43%
Debt securities in issue   14,527,403    18,219,495    19,435,865    6.68%   33.79%   10.07%   11.26%
Preferred shares   579,946    565,979    580,959    2.65%   0.17%   0.30%   0.34%
Repurchase agreements and other similar secured borrowing   1,891,959    1,360,278    1,232,456    -9.40%   -34.86%   0.64%   0.71%
Tax liabilities   119,654    353,619    193,949    -45.15%   62.09%   0.10%   0.11%
Deferred tax liabilities   543,101    937,183    834,392    -10.97%   53.63%   0.43%   0.48%
Employee pension plan   424,558    139,095    546,422    292.84%   28.70%   0.28%   0.32%
Liabilities relating to assets held for sale   -    1,531,043    1,605,133    4.84%   -    0.83%   0.93%
Other liabilities   3,707,440    4,630,952    4,281,889    -7.54%   15.49%   2.22%   2.48%
Total liabilities   132,263,401    155,024,028    172,564,948    11.31%   30.47%   89.42%   100.00%
SHAREHOLDERS' EQUITY                                   
Capital   480,914    480,914    480,914    0.00%   0.00%   0.25%     
Additional paid-in-capital   4,857,454    4,857,454    4,857,454    0.00%   0.00%   2.52%     
Appropriate reserves   5,130,861    6,288,717    5,877,379    -6.54%   14.55%   3.05%     
Retained earnings   5,667,037    6,231,534    5,850,588    -6.11%   3.24%   3.03%     
Cumulative other comprehensive income   735,641    1,452,268    2,213,114    52.39%   200.84%   1.15%     
Stockholders’ equity attributable the owners of the parent company   16,871,907    19,310,887    19,279,449    -0.16%   14.27%   9.99%     
Non-controlling interest   494,573    540,458    1,128,470    108.80%   128.17%   0.58%     
Total liabilities and stockholders' equity   149,629,881    174,875,373    192,972,867    10.35%   28.97%   100.00%     

 

 12

 

 

   
  4Q15

  

INCOME STATEMENT  As of   Growth               Growth 
(COP million)  Dec-14   Dec-15   Dec-15/Dec-14   4Q14   3Q15   4Q15   4Q15/3Q15   4Q15/4Q14 
Interest income and expenses                                        
Interest on loans                                        
Commercial   3,889,542    5,487,993    41.10%   876,736    1,414,120    1,524,846    7.83%   73.92%
Consumer   1,997,319    2,333,173    16.82%   544,984    600,152    619,699    3.26%   13.71%
Small business loans   158,344    188,438    19.01%   61,407    49,589    50,489    1.81%   -17.78%
Mortgage   1,372,337    1,396,002    1.72%   489,371    319,544    398,620    24.75%   -18.54%
Leasing   1,172,218    1,547,634    32.03%   318,271    373,097    414,122    11.00%   30.12%
Total Interest on loans   8,589,760    10,953,240    27.52%   2,290,769    2,756,502    3,007,776    9.12%   31.30%
Overnight and market funds   11,122    14,564    30.95%   1,524    3,442    4,930    43.23%   223.49%
Investment                                        
Debt investments, net   28,470    71,091    149.70%   6,073    25,298    22,475    -11.16%   270.08%
Net gains from investment activities at fair value through income statement                                        
Debt investments   434,586    294,979    -32.12%   166,866    1,438    72,108    4914.46%   -56.79%
Derivatives   (91,963)   31,835    134.62%   (1,357)   64,181    (17,720)   -127.61%   1205.82%
Repos   164,198    (50,081)   -130.50%   27,948    (19,184)   15,695    181.81%   -43.84%
Other   35,990    (45,984)   -227.77%   39,809    (20,658)   (17,234)   -16.57%   -143.29%
Total Net gains from investment activities at fair value through profit and loss   542,811    230,749    -57.49%   233,266    25,777    52,849    105.02%   -77.34%
Total interest on investment securities   571,281    301,840    -47.16%   239,339    51,075    75,324    47.48%   -68.53%
Total interest income   9,172,163    11,269,644    22.87%   2,531,632    2,811,019    3,088,030    9.85%   21.98%
Interest expense                                        
Borrowing costs   (384,313)   (454,326)   18.22%   (111,991)   (125,199)   (132,585)   5.90%   18.39%
Overnight funds   (3,719)   (6,836)   83.81%   (2,348)   (2,137)   (839)   -60.74%   -64.27%
Debt securities in issue   (780,429)   (1,057,748)   35.53%   (219,559)   (285,114)   (299,541)   5.06%   36.43%
Deposits   (1,881,821)   (2,415,187)   28.34%   (482,876)   (614,015)   (711,376)   15.86%   47.32%
Preferred Shares Dividends   (53,155)   (58,714)   10.46%   (14,978)   (14,578)   (14,980)   2.76%   0.01%
Other interest (expense)   (61,174)   (45,130)   -26.23%   (7,358)   1,853    (5,751)   -410.36%   -21.84%
Total interest expense   (3,164,611)   (4,037,941)   27.60%   (839,110)   (1,039,190)   (1,165,072)   12.11%   38.85%
Net interest income   6,007,552    7,231,703    20.38%   1,692,522    1,771,829    1,922,958    8.53%   13.61%
Loan loss provisions   (1,043,969)   (1,884,857)   80.55%   (143,048)   (533,941)   (581,976)   9.00%   306.84%
Recovery of charged-off loans   200,372    217,177    8.39%   89,791    58,857    58,432    -0.72%   -34.92%
Other assets impairment   (25,608)   (7,421)   -71.02%   10,209    (15,950)   63,948    500.93%   526.39%
Total net provisions   (869,205)   (1,675,101)   92.72%   (43,048)   (491,034)   (459,596)   -6.40%   967.64%
Net interest income after provision, net   5,138,347    5,556,602    8.14%   1,649,474    1,280,795    1,463,362    14.25%   -11.28%
Fees and other service income                                        
Banking services   653,513    630,616    -3.50%   164,382    163,197    175,235    7.38%   6.60%
Credit and debit card fees   420,707    524,646    24.71%   107,369    136,157    124,911    -8.26%   16.34%
Electronic services and ATM fees   380,696    490,607    28.87%   130,326    124,965    144,364    15.52%   10.77%
Brokerage   23,784    23,453    -1.39%   5,310    6,711    5,201    -22.50%   -2.05%
Acceptances, Guarantees and Standby letters of credits   51,923    44,539    -14.22%   12,102    11,502    11,087    -3.61%   -8.39%
Trust   203,608    265,215    30.26%   52,135    67,099    67,293    0.29%   29.07%
Bancassurance   212,223    260,224    22.62%   61,905    60,037    77,889    29.73%   25.82%
Payments and Collections   182,669    203,772    11.55%   49,913    51,767    55,803    7.80%   11.80%
Other   366,294    347,485    -5.13%   131,114    100,222    88,113    -12.08%   -32.80%
Total Fees and other service income   2,495,417    2,790,557    11.83%   714,556    721,657    749,896    3.91%   4.95%
Fees and other service expenses                                        
Banking services   (245,581)   (298,415)   21.51%   (86,518)   (80,132)   (82,509)   2.97%   -4.63%
Other   (424,126)   (499,098)   17.68%   (133,200)   (128,680)   (161,688)   25.65%   21.39%
Total Fees and other service expenses   (669,707)   (797,513)   19.08%   (219,718)   (208,812)   (244,197)   16.95%   11.14%
Total fees and income from services, net   1,825,710    1,993,044    9.17%   494,838    512,845    505,699    -1.39%   2.19%
Other operating income                                        
Derivatives FX contracts   (150,451)   527,137    450.37%   (123,554)   88,798    337,615    280.21%   373.25%
Net foreign exchange   331,786    (157,933)   -147.60%   142,372    2,266    (250,209)   -11141.88%   -275.74%
Hedging   (22,923)   (20,509)   -10.53%   (7,224)   (13,296)   (831)   -93.75%   -88.50%
Operating leases   355,542    448,754    26.22%   94,745    127,684    125,170    -1.97%   32.11%
Gains (or losses) on sale of assets   31,913    10,655    -66.61%   34,981    (1,875)   6,282    435.04%   -82.04%
Other reversals   10,765    2,534    -76.46%   2,714    547    251    -54.11%   -90.75%
Other income   579,911    562,064    -3.08%   136,978    121,415    159,393    31.28%   16.36%
Total other operating income   1,136,543    1,372,702    20.78%   281,012    325,539    377,671    16.01%   34.40%
Dividends received and equity method                                        
Dividends   44,352    23,833    -46.26%   5,980    508    3,116    513.39%   -47.89%
Equity investments   17,790    95,595    437.35%   (18,783)   (6,141)   44,208    819.88%   335.36%
Equity method   60,547    122,477    102.28%   (42,581)   5,346    65,192    1119.45%   253.10%
Gains (Losses) on sale of Discontinued Operations   -    (30,331)   0.00%   -    (14,203)   (16,128)   13.55%   0.00%
Total Dividends received and equity method   122,689    211,574    72.45%   (55,384)   (14,490)   96,388    765.20%   274.04%
Total income   8,223,289    9,133,922    11.07%   2,369,940    2,104,689    2,443,120    16.08%   3.09%

 

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  4Q15

  

INCOME STATEMENT  As of   Growth               Growth 
(COP million)  Dec-14   Dec-15   Dec-15/Dec-14   4Q14   3Q15   4Q15   4Q15/3Q15   4Q15/4Q14 
Operating expenses                                        
Salaries and employee benefits   (1,720,149)   (1,933,660)   12.41%   (514,983)   (502,026)   (502,897)   0.17%   -2.35%
Bonuses   (253,318)   (321,731)   27.01%   (107,522)   (106,736)   (80,281)   -24.79%   -25.34%
Administration and general expenses   (1,947,375)   (2,237,598)   14.90%   (552,987)   (564,492)   (665,720)   17.93%   20.39%
Contributions and other tax burden   (438,711)   (515,424)   17.49%   (132,952)   (122,577)   (164,613)   34.29%   23.81%
Depreciation and amortization   (459,703)   (477,285)   3.82%   (146,819)   (134,099)   (133,751)   -0.26%   -8.90%
Other expenses   (299,439)   (252,626)   -15.63%   (95,827)   (56,920)   (79,237)   39.21%   -17.31%
Tax on wealth   -    (159,963)   0.00%   -    -    -    0.00%   0.00%
Total operating expenses   (5,118,695)   (5,898,287)   15.23%   (1,551,090)   (1,486,850)   (1,626,499)   9.39%   4.86%
Profit before tax   3,104,594    3,235,635    4.22%   818,850    617,839    816,621    32.17%   -0.27%
Income tax   (737,676)   (649,250)   -11.99%   (217,529)   (82,454)   (98,904)   19.95%   -54.53%
Net income before non-controlling interest   2,366,918    2,586,385    9.27%   601,321    535,385    717,717    34.06%   19.36%
Non-controlling interest   (42,699)   (90,008)   110.80%   (20,179)   (11,297)   (45,752)   304.99%   126.73%
Net income before Discontinued Operations   2,324,219    2,496,377    7.41%   581,142    524,088    671,965    28.22%   15.63%
Discontinued Operations Net Income   62,867    22,513    -64.19%   10,998    17,226    (15,613)   -190.64%   -241.96%
Net income   2,387,086    2,518,890    5.52%   592,140    541,314    656,352    21.25%   10.84%

 

 14

 

  

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:  March 9, 2016 By:   /s/  JAIME ALBERTO VELÁSQUEZ B.                      
    Name:   Jaime Alberto Velásquez B.  
    Title:   Vice President of Strategy and Finance