UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

 

FORM 6-K

 

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

 

For the month of February, 2018

 

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 S.A. (NYSE: CIB; BVC: BCOLOMBIA, PFBCOLOM) REPORTS CONSOLIDATED NET INCOME OF COP 2.61 TRILLION FOR 2017 WHICH REPRESENTS A DECREASE OF 9% COMPARED TO 2016 AND COP 902 BILLION FOR THE FOURTH QUARTER OF 2017, WHICH REPRESENTS AN INCREASE OF 100% COMPARED TO THE PREVIOUS QUARTER.

 

 

 

·Net interest income was COP 2.65 trillion for 4Q17, growing 7.4% when compared to 4Q16. This growth is explained by higher volumes of peso-denominated loans and the year-on-year increase in net interest margin. Net interest income increased 3.7% during the quarter.

 

·Net fees were COP 658 billion and increased by 11.3% compared to 4Q16. This growth was mainly driven by an increase in fees related to credit and debit cards, bancassurance, as well as trust services. Net fees increased by 8.4% during the quarter.

 

·The annualized net interest margin for the quarter was 6.0%. The margin was stable when compared to 4Q16 and increased 14 basis points compared with the margin for 3Q17. Besides, the pressure in the margin due to the cuts in the reference rate by the Central Bank, the strict control of the cost of deposits help the margin during the quarter.

 

·Gross loans grew 5.7% when compared to 4Q16 and 1.3% during the quarter. This growth shows moderation in the credit demand in Colombia. Peso-denominated loans grew 11.9% when compared to 4Q16.

 

·Provision charges for the quarter were COP 930 billion and the coverage ratio for 90-day past due loans was 164.2%. These provisions allow us to maintain a solid coverage ratio amid a challenging environment, as new past due loans totaled COP 622 billion for the quarter.

 

·Tier 1 ratio was 10.2% at December 31, 2017 and increased 113 basis points when compared to December 31, 2016. The capital adequacy ratio was 14.2%.

 

February 21, 2018. Medellin, Colombia – Today, BANCOLOMBIA S.A. (“Bancolombia” or “the Bank”) announced its earnings results for the fourth quarter of 2017[1]. For the quarter ended on December 31, 2017 (“4Q17”), Bancolombia reported consolidated net income of COP 902 billion, or COP 937.70 per share - USD 1.26 per ADR. This net income represents a 100.1% increase compared to the quarter ended on September 30, 2017 (“3Q17”) and a decrease of 20.3% compared to the quarter ended on December 31, 2016 (“4Q16”).

 

________________

 

1. This report corresponds to the interim unaudited consolidated financial information 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. This financial information has been prepared based on financial records generated in accordance with International Financial Reporting Standards – IFRS. BANCOLOMBIA maintains accounting records in Colombian pesos, referred to herein as “Ps.” or “COP”. The financial information for the quarter ended December 31, 2017 is 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.

. BANCOLOMBIA’s first IFRS financial statements will cover the year ending in 2015. CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS: This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties; consequently, there are or will be factors, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products by other companies, lack of acceptances of new products or services by our targeted customers, changes in business strategy and various others factors, that could cause actual results to differ materially from those indicated in such statements. We do not intend, and do not assume any obligation, to update these forward-looking statements. Certain monetary amounts, percentages and other figures included in this report have been subject to rounding adjustments. Any reference to BANCOLOMBIA means the Bank together with its affiliates, unless otherwise specified.

Representative Market Rate, October 1, 2017 $2,984.00 = US$ 1

 

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BANCOLOMBIA: Summary of consolidated financial quarterly results

  

CONSOLIDATED BALANCE SHEET      
AND INCOME STATEMENT Quarter Growth
(COP million) 4Q16 3Q17 4Q17 4Q17/3Q17 4Q17/4Q16
ASSETS          
Net Loans  145,125,575  150,576,426  152,244,991 1.11% 4.91%
Investments    13,060,653    16,664,585    16,377,253 -1.72% 25.39%
Other assets    38,074,816    36,851,865    35,285,967 -4.25% -7.32%
Total assets  196,261,044  204,092,876  203,908,211 -0.09% 3.90%
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
Deposits  124,624,011  127,891,132  131,959,215 3.18% 5.89%
Other liabilities    49,160,053    52,840,013    47,519,446 -10.07% -3.34%
Total liabilities  173,784,064  180,731,145  179,478,661 -0.69% 3.28%
Non-controlling interest      1,209,397      1,244,883      1,316,586 5.76% 8.86%
Shareholders' equity    21,267,583    22,116,848    23,112,964 4.50% 8.68%
Total liabilities and shareholders' equity  196,261,044  204,092,876  203,908,211 -0.09% 3.90%
           
Interest income      4,094,749      4,103,889      4,151,605 1.16% 1.39%
Interest expense     (1,631,492)     (1,551,894)     (1,505,606) -2.98% -7.72%
Net interest income      2,463,257      2,551,995      2,645,999 3.68% 7.42%
Net provisions        (771,510)        (967,284)        (930,368) -3.82% 20.59%
Fees and income from service, net         590,991         606,512         657,628 8.43% 11.28%
Other operating income         473,105         353,391         558,363 58.00% 18.02%
Total Dividends received and equity method          16,165          36,916            2,392 -93.52% -85.20%
Total operating expense     (1,916,395)     (1,868,169)     (1,619,786) -13.30% -15.48%
Profit before tax         855,613         713,361      1,314,228 84.23% 53.60%
Income tax         125,866        (245,307)        (345,556) 40.87% -374.54%
Net income before non-controlling interest         981,479         468,054         968,672 106.96% -1.30%
Non-controlling interest           (6,304)         (17,248)         (66,771) 287.12% 959.18%
Net income before Discontinued Operations         975,175         450,806         901,901 100.06% -7.51%
Discontinued Operations Net Income         155,804                 -                    -    0.00% -100.00%
Net income      1,130,979         450,806         901,901 100.06% -20.25%
           
PRINCIPAL RATIOS   Quarter   As of
  4Q16 3Q17 4Q17 4Q16 4Q17
PROFITABILITY          
Net interest margin (1) from continuing operations 5.98% 5.84% 5.98% 5.96% 6.07%
Return on average total assets (2) from continuing operations 2.34% 0.89% 1.76% 1.49% 1.30%
Return on average shareholders´ equity (3) 22.06% 8.22% 15.96% 14.52% 11.99%
EFFICIENCY          
Operating expenses to net operating income 54.08% 52.64% 41.92% 51.02% 49.23%
Operating expenses to average total assets 3.97% 3.67% 3.16% 3.64% 3.60%
Operating expenses to productive assets 4.65% 4.28% 3.66% 4.29% 4.20%
CAPITAL ADEQUACY          
Shareholders' equity to total assets  10.84% 10.84% 11.33% 10.84% 11.33%
Technical capital to risk weighted assets  13.26% 13.42% 14.18% 13.26% 14.18%
KEY FINANCIAL HIGHLIGHTS          
Net income per ADS from continuing operations              1.57              0.64              1.26              3.97              3.64
Net income per share $COP from continuing operations        1,175.87          468.70          937.70        2,979.05        2,718.78
P/BV ADS (4)              1.24              1.46              1.23              1.24              1.23
P/BV Local (5) (6)              1.14              1.42              1.25              1.14              1.25
P/E (7) from continuing operations              5.59            17.68              7.94              8.83            10.96
ADR price            36.68            45.79            39.66            36.68            39.66
Common share price (8)          25,220          32,740          29,980          25,220          29,980
Weighted average of Preferred Shares outstanding  961,827,000  961,827,000  961,827,000  961,827,000  961,827,000
USD exchange rate (quarter end)        3,000.71        2,936.67        2,984.00        3,000.71        2,984.00

 

(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.

 

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1.BALANCE SHEET

 

1.1.Assets

 

As of December 31, 2017, Bancolombia’s assets totaled COP 203,908 billion, which represents a decrease of 0.1% compared to 3Q17 and an increase of 3.9% compared to 4Q16.

 

During the quarter, the COP depreciated 1.6% versus the USD and over the past 12 months, it appreciated 0.6%.

 

The increase in total assets during the quarter is largely explained by the growth in loans, cash and Reverse repurchase agreements.

 

1.2.Loan Portfolio

 

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

 

(COP Million) Amounts in COP Amounts in USD converted to COP Amounts in USD (thousands) Total
(1 USD = 2984,00 COP) 4Q17 4Q17/3Q17 4Q17 4Q17/3Q17 4Q17 4Q17/3Q17 4Q17 4Q17/3Q17
Commercial loans            74,919,332 2.90%            36,109,865 -4.31%            12,101,161 -5.83%          111,029,197 0.44%
Consumer loans            18,844,595 6.37%              9,016,392 2.58%              3,021,579 0.95%            27,860,987 5.11%
Mortgage loans            11,448,118 0.48%              9,059,132 1.86%              3,035,902 0.25%            20,507,249 1.08%
Small business loans                651,135 -0.34%                424,908 -0.04%                142,396 -1.62%              1,076,043 -0.22%
Interests paid in advance                   (4,033) -400.32%                   (1,349) 0.44%                      (452) 100.00%                   (5,382) 0.00%
Gross loans          105,859,146 3.21%            54,608,948 -2.21%            18,300,586 -3.76%          160,468,094 1.30%

 

The quarter 4Q17 shows an increase in gross loans of 1.3% when compared to 3Q17. Peso-denominated loans grew 11.9% and the dollar-denominated loans decreased 3.7%, compared to 4Q16. In comparison with 4Q16, total gross loans grew 5.7%.

 

As of December 31, 2017, our operations in Banco Agricola in El Salvador, Banistmo in Panama and BAM in Guatemala, represented 25% of total gross loans.

 

Gross loans denominated in currencies other than COP, originated by our operations in Central America and the offshore operation of Bancolombia Panama as well as the USD denominated loans in Colombia, accounted for 34% and decreased 2.2% during 4Q17 (when expressed in COP), explained mainly by the reduction of the loan portfolio in dollars in Colombia.

 

Total reserves (allowances in the balance sheet) for loan losses increased by 5.0% during the quarter and totaled COP 8,223 billion, equivalent to 5.1% 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           % of total loans
(COP million) 4Q16 3Q17 4Q17 4Q17/3Q17 4Q17/4Q16
Commercial    107,350,204    110,537,937    111,029,197 0.44% 3.43% 69.19%
Consumer      24,179,711      26,505,346      27,860,987 5.11% 15.22% 17.36%
Mortgage      19,153,710      20,287,544      20,507,249 1.08% 7.07% 12.78%
Microcredit        1,063,947        1,078,436        1,076,043 -0.22% 1.14% 0.67%
Interests received in advance                    (86)                       -                 (5,382) 0.00% 6158.14% 0.00%
Total loan portfolio    151,747,486    158,409,263    160,468,094 1.30% 5.75% 100.00%
Allowance for loan losses       (6,621,911)       (7,832,837)       (8,223,103) 4.98% 24.18%  
Total loans, net    145,125,575    150,576,426    152,244,991 1.11% 4.91%  

 

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1.3.Investment Portfolio

 

As of December 31, 2017, Bancolombia’s net investment portfolio totaled COP 16,377 billion, decreasing 1.7% from the end of 3Q17 and increasing 25.4% from the end of 4Q16. The investment portfolio consists primarily of debt securities, which represent 65.3% of Bancolombia’s total investments and 5.2% of assets at the end of 4Q17.

 

At the end of 4Q17, the debt securities portfolio had a duration of 23.1 months and a weighted average yield to maturity of 5.3%.

 

1.4.Goodwill and intangibles

 

As of 4Q17, Bancolombia’s goodwill and intangibles totaled COP 6,631 billion, increasing 1.6% compared to 3Q17. This variation is explained by the depreciation of the COP against the USD during the quarter.

 

1.5.Funding

 

As of December 31, 2017, Bancolombia’s liabilities totaled COP 179,479 billion, decreasing 0.7% from the end of 3Q17 and increasing 3.3% compared to 4Q16.

 

Deposits by customers totaled COP 131,959 billion (or 73.5% of liabilities) at the end of 4Q17, increasing 3.2% during the quarter and 5.9% over the last 12 months. The net loans to deposits ratio was 115.4% at the end of 4Q17.

 

Bancolombia’s funding strategy during the last months has been to reduce the average life of time deposits and promote saving and checking accounts in the consumer segment in order to keep the funding cost at a minimum. The objective is to build and maintain ample liquidity and reduce the sensitivity of the balance sheet to cuts in interest rates.

 

Funding mix 4Q16 3Q17 4Q17
COP Million          
Checking accounts    21,443,002 13%    20,232,549 12%    22,065,647 13%
Saving accounts    48,693,702 30%    51,418,374 30%    54,255,583 32%
Time deposits    52,673,385 32%    55,100,729 33%    53,961,586 32%
Other deposits      3,737,932 2%      5,358,634 3%      4,912,527 3%
Long term debt    18,704,809 11%    19,365,423 11%    19,648,714 12%
Loans with banks    19,247,699 12%    17,935,827 11%    14,906,743 9%
Total Funds  164,500,529 100%  169,411,536 100%  169,750,800 100%

 

1.6.Shareholders’ Equity and Regulatory Capital

 

Shareholders’ equity at the end of 4Q17 was COP 23,113 billion, increasing 4.5% or COP 996 billion, compared to the value reported at the end of 3Q17. This increase is explained by the earnings generated during the quarter.

 

Bancolombia’s capital adequacy ratio was 14.2% in 4Q17.

 

Bancolombia’s capital adequacy ratio was 520 basis points above the minimum 9% required by the Colombian regulator, while the basic capital ratio (Tier 1) to risk weighted assets was 10.2%, 570 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 8.2% at the end of 4Q17.

 

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In the last months, Bancolombia has generated capital organically due to the appropriation of earnings in March 2017 and to the efficient allocation of capital in different products, at the same time Bancolombia has reduced the VaR consumption across several segments. The annual increase in the RWA is mainly explained by the growth in the loan portfolio.

 

TECHNICAL CAPITAL RISK WEIGHTED ASSETS            
Consolidated (COP millions) 4Q16 % 3Q17 % 4Q17 %
Basic capital (Tier I)     15,042,396 9.02%     17,897,207 10.28%     18,032,743 10.15%
Additional capital (Tier II)      7,069,448 4.24%      5,474,092 3.14%      7,143,524 4.03%
Technical capital (1)     22,111,844       23,371,299       25,176,267  
Risk weighted assets including market risk   166,781,426     174,129,964     177,600,261  
CAPITAL ADEQUACY (2)   13.26%   13.42%   14.18%

 

 

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

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

 

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2.INCOME STATEMENT

 

Net income totaled COP 902 billion in 4Q17, or COP 937.7 per share - USD 1.26 per ADR. This net income represents an increase of 100.1% compared to 3Q17 and a decrease of 20.3% compared to 4Q16. Bancolombia’s annualized ROE for 4Q17 was 16.0%.

 

2.1.Net Interest Income

 

Net interest income totaled COP 2,646 billion in 4Q17, 3.7% more than the one reported in 3Q17, and 7.4% higher than the figure for 4Q16. During the quarter, the Net Interest Income increased explained mainly by higher loan portfolio volumes as well as an increase in the net interest margin.

 

During 4Q17, the investment, interest rate derivatives and repos portfolio generated COP 173 billion, higher by 23.3% from 3Q17.

 

Net Interest Margin

 

The annualized net interest margin decreased to 6.0% in 4Q17. The annualized net interest margin for investments was 2.6%, and the annualized net interest margin of the loan portfolio was 6.3%, equal to the one reported in 3Q17.

 

Despite higher cuts in the reference rate by the Central Bank, the loans interest margin was stable during the quarter, thanks to the efforts in the change of the sensitivity of the balance sheet, as well as the strict control of the cost of funding.

 

Annualized Interest      
Margin 4Q16 3Q17 4Q17
Loans' Interest margin 6.5% 6.3% 6.3%
Debt investments' margin -0.5% 0.9% 2.6%
Net interest margin 6.0% 5.8% 6.0%

  

Total funding cost decreased during 4Q17, due to the reduction of long-term debt, as well as a reduction in the average life of time deposits. Savings and checking accounts represented the same proportion of the total cost of funding as in 3Q17, and the annualized average weighted cost of deposits was 3.2% in 4Q17, decreasing 15 basis point compared to 3Q17 and 41 basis points compared to 4Q16.

 

Average weighted      
funding cost 4Q16 3Q17 4Q17
Checking accounts 0.00% 0.00% 0.00%
Saving accounts 2.36% 2.28% 2.10%
Time deposits 6.08% 5.46% 5.44%
Total deposits 3.58% 3.32% 3.17%
Long term debt 7.13% 6.11% 6.24%
Loans with banks 2.92% 2.52% 2.33%
Total funding cost 3.86% 3.49% 3.39%

  

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2.2.Fees and Income from Services

 

During 4Q17, net fees and income from services totaled COP 658 billion, increasing 8.4% compared to 3Q17, and 11.3% compared to 4Q16. The positive annual performance in fees compared with 4Q16 is due to higher volumes of transactions and the good performance of credit and debit cards, bancassurance and trust services.

 

Fees from asset management and trust services increased 4.2% compared to 3Q17 and 22.9% compared to 4Q16, due to an increase in the assets under management. Fees from credit and debit cards increased 3.0% compared to 3Q17, and 8.6% compared to 4Q16. Fees from our bancassurance business increased 22.3% compared to 3Q17 and 32.8% with respect to 4Q16, thanks to the continuation of cross-selling initiatives led by our sales teams.

 

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

 

ACCUMULATED CREDIT CARD BILLING % 2017
(COP millions) Nov-16 Nov-17 Growth Market Share
Bancolombia VISA     4,645,212     6,327,626 36.22% 10.33%
Bancolombia Mastercard     4,614,562     5,312,484 15.12% 8.67%
Bancolombia American Express     3,582,770     3,461,046 -3.40% 5.65%
Total Bancolombia   12,842,544   15,101,156 17.59% 24.65%
Colombian Credit Card Market   55,632,069   61,266,037 10.13%  
         
CREDIT CARD MARKET SHARE % 2017
(Outstanding credit cards) Nov-16 Nov-17 Growth Market Share
Bancolombia VISA         677,623         811,601 19.77% 4.84%
Bancolombia Mastercard         805,340         917,802 13.96% 5.48%
Bancolombia American Express         600,523         567,734 -5.46% 3.39%
Total Bancolombia     2,083,486     2,297,137 10.25% 13.71%
Colombian Credit Card Market   16,503,953   16,756,983 1.53%  

Source: Superintendencia Financiera de Colombia

 

2.3.Other Operating Income

 

Total other operating income was COP 558 billion in 4Q17, increasing by 58.0% compared to 3Q17, and by 18.0% compared to 4Q16.

 

Revenues from the operating leases totaled COP 147 billion in 4Q17, increasing by 3.6% compared to 3Q17 and by 5.9% compared to those reported in 4Q16. Such increase is due to higher volumes of operations and delivered assets under leasing.

 

Additionally, during the quarter an income of COP 86 billion was received from the fiscal authority of Colombia. These resources correspond to income taxes paid in previous fiscal years and on which Bancolombia had requested a return.

 

2.4.Asset Quality, Provision Charges and Balance Sheet Strength

 

The principal balance for past due loans (those that are overdue for more than 30 days) totaled COP 6,941 billion at the end of 4Q17 and represented 4.49% of total gross loans, increasing by 1.0% compared to 3Q17, when past due loans represented 4.50% of total gross loans. During 4Q17, Charge-offs totaled COP 554 billion.

 

The coverage, measured by the ratio of allowances for loans losses (principal) to PDLs (overdue 30 days), was 107.5% at the end of 4Q17, increasing compared to 103.5% at the end of 3Q17.The coverage measured by the ratio of allowances for loans losses to loans classified as C, D and E, was 76.1% at the end of 4Q17, decreasing slightly from 81.3% at the end of 3Q17.

 

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The deterioration of the loan portfolio (new past due loans including charge-offs) was COP 622 billion in 4Q17. During the quarter, the deterioration of loans increased mainly in the consumer segment as well as some deterioration in SMEs. Provision charges (net of recoveries) totaled COP 930 billion in 4Q17. Provisions as a percentage of the average gross loans were 2.3% for 4Q17 and 2.2% for 2017.

 

Bancolombia maintains a strong balance sheet supported by an adequate level of loan loss reserves. Allowances for loan losses totaled COP 7.462 billion, or 4.8% of total loans at the end of 4Q17, increasing as compared to 3Q17.

 

The following tables present key metrics related to asset quality:

 

ASSET QUALITY As of 
(COP millions) 4Q16 3Q17 4Q17
Total 30-day past due loans 4,835,329 6,873,306 6,940,620
Allowance for loan losses (1) 6,087,510 7,111,020 7,462,401
Past due loans to total loans  3.31% 4.50% 4.49%
“C”, “D” and “E” loans as a percentage of total loans 5.07% 5.72% 6.34%
Allowances to past due loans 125.90% 103.46% 107.52%
Allowance for loan  losses as a percentage of “C”, “D” and “E” loans 82.08% 81.29% 76.12%
Allowance for loan losses as a percentage of total loans 4.17% 4.65% 4.83%

 

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

 

PDL Per Category     30 days
  % Of loan Portfolio 4Q16 3Q17 4Q17
Commercial loans 69.2% 2.16% 3.42% 3.39%
Consumer loans 17.4% 5.23% 5.81% 5.88%
Mortgage loans  12.8% 6.73% 8.01% 7.92%
Microcredit 0.7% 10.46% 13.38% 12.86%
PDL TOTAL    3.31% 4.50% 4.49%
         
PDL Per Category     90 days
  % Of loan Portfolio 4Q16 3Q17 4Q17
Commercial loans 69.2% 1.69% 2.69% 2.69%
Consumer loans 17.4% 2.69% 3.02% 3.16%
Mortgage loans* 12.8% 2.75% 3.37% 3.60%
Microcredit 0.7% 6.47% 9.39% 9.21%
PDL TOTAL    2.02% 2.88% 2.94%

 

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

  

LOANS AND FINANCIAL LEASES CLASSIFICATION 4Q16 3Q17 4Q17
(COP millions)            
¨A¨ Normal 136,519,364 90.0% 139,689,925 88.2% 140,560,415 87.6%
¨B¨ Subnormal 7,270,458 4.8% 9,219,150 5.8% 9,183,244 5.7%
¨C¨ Deficient 3,613,646 2.4% 4,206,473 2.7% 3,869,827 2.4%
¨D¨ Doubtful recovery 2,481,343 1.6% 2,954,610 1.9% 4,443,051 2.8%
¨E¨ Unrecoverable 1,862,675 1.2% 2,339,105 1.5% 2,411,556 1.5%
Total 151,747,486 100.0% 158,409,263 100.0% 160,468,094 100.0%
Loans and financial leases classified as C, D and E            
as a percentage of total loans and financial leases 5.24%   6.00%   6.68%  

 

2.5.Operating Expenses

 

During 4Q17, operating expenses totaled COP 1,620 billion, decreasing 13.3% with respect to 3Q17 and 15.5% with respect to 4Q16.

 

Personnel expenses (salaries, bonus plan payments and compensation) totaled COP 495 billion in 4Q17, decreasing 33.1% compared to 3Q17 and 36.6% compared to 4Q16. Bonuses fell by 17.3% during the year due to the reduction in the profitability of the business that led to an adjustment in this line during 4Q17.

 

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During 4Q17, administrative expenses totaled COP 1,125 billion, decreasing 0.3% compared to 3Q17 and 1.0% as compared to 4Q16.

 

The annual decrease in operating expenses is explained by several strategies done on this front, which includes the reduction in the network of branches, automation and optimization of processes and the rationalization of personal expenses.

 

Depreciation and amortization expenses totaled COP 122 billion in 4Q17, increasing 2.0% compared to 3Q17 and 4.2% compared to 4Q16.

 

As of December 31, 2017, Bancolombia had 31,073 employees, owned 1,070 branches, 5,630 ATMs, 10,349 banking agents and served more than 11 million customers.

 

2.6.Taxes

 

Income tax expense was COP 346 billion for 4Q17, increasing 40.9% when compared to the income tax registered in 3Q17. Income tax expense for 2017 was COP 1,239 billion with and effective tax rate of 31.0%.

 

The variation in the income tax between 4Q17 and 4Q16 was due to the fact that during 4Q16, there was a tax reversion in the provision of the income tax after the income statement was finalized, meaning there was certainty about the payable taxes based on the income generated during the fiscal period. Usually, this adjustment occurs at the end of each year. Additionally, there was a reversion for the compensation of fiscal credits and the tax reform approved in December 2016, had an impact on deferred taxes because statutory tax rates were lower than those previously estimated.

 

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3.BREAK DOWN OF OPERATIONS

The following table summarizes the financial statements of our operations in each country.

 

BANCOLOMBIA S.A. (STAND ALONE) - COLOMBIA

CONSOLIDATED BALANCE SHEET        
AND INCOME STATEMENT Quarter Growth
(COP million) 4Q16 3Q17 4Q17 4Q17/3Q17 4Q17/4Q16
ASSETS          
Gross loans   104,452,714  111,608,945  113,609,285 1.79% 8.77%
Allowances for loans     (5,357,491)     (6,712,563)     (7,150,727) 6.53% 33.47%
Investments    15,809,851    18,625,027    18,565,320 -0.32% 17.43%
Other assets    18,850,997    16,749,333    17,183,966 2.59% -8.84%
Total assets   133,756,071  140,270,741  142,207,845 1.38% 6.32%
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
Deposits    78,233,728    82,093,223    85,321,406 3.93% 9.06%
Other liabilities    39,606,352    41,925,678    40,213,087 -4.08% 1.53%
Total liabilities   117,840,080  124,018,901  125,534,493 1.22% 6.53%
Shareholders' equity    15,915,991    16,251,839    16,673,352 2.59% 4.76%
Total liabilities and shareholders' equity   133,756,071  140,270,741  142,207,845 1.38% 6.32%
           
Interest income      4,447,062      3,236,032      3,242,299 0.19% -27.09%
Interest expense     (2,060,241)     (1,257,962)     (1,211,002) -3.73% -41.22%
Net interest income      2,386,821      1,978,069      2,031,296 2.69% -14.90%
Net provisions        (659,627)       (869,353)       (892,038) 2.61% 35.23%
Fees and income from service, net         413,755        387,612        396,869 2.39% -4.08%
Other operating income         709,503        201,592        282,555 40.16% -60.18%
Total operating expense     (1,495,637)     (1,276,077)     (1,010,814) -20.79% -32.42%
Profit before tax      1,354,817        421,844        807,868 91.51% -40.37%
Income tax          (39,275)       (169,069)       (297,621) 76.03% 657.79%
Net income      1,315,541        252,775        510,247 101.86% -61.21%

 

BANISTMO- PANAMA

CONSOLIDATED BALANCE SHEET        
AND INCOME STATEMENT Quarter Growth
(COP million) 4Q16 3Q17 4Q17 4Q17/3Q17 4Q17/4Q16
ASSETS          
Gross loans    21,803,831    22,322,227    22,405,137 0.37% 2.76%
Allowances for loans        (591,780)       (406,655)       (345,846) -14.95% -41.56%
Investments      2,206,526      2,737,570      2,722,609 -0.55% 23.39%
Other assets      3,805,714      4,296,165      3,337,605 -22.31% -12.30%
Total assets    27,224,292    28,949,307    28,119,504 -2.87% 3.29%
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
Deposits    19,210,560    18,810,084    19,378,355 3.02% 0.87%
Other liabilities      5,314,600      7,231,648      5,662,115 -21.70% 6.54%
Total liabilities    24,525,160    26,041,732    25,040,470 -3.84% 2.10%
Shareholders' equity      2,699,132      2,907,575      3,079,035 5.90% 14.08%
Total liabilities and shareholders' equity    27,224,292    28,949,307    28,119,504 -2.87% 3.29%
           
Interest income         326,375        376,618        385,109 2.25% 18.00%
Interest expense        (129,256)       (144,872)       (143,521) -0.93% 11.04%
Net interest income         197,119        231,746        241,589 4.25% 22.56%
Net provisions        (145,013)         (69,109)            7,594 -110.99% -105.24%
Fees and income from service, net           42,138          47,669          55,145 15.68% 30.87%
Other operating income           23,108            4,625            5,129 10.89% -77.81%
Total operating expense        (177,358)       (154,744)       (174,296) 12.64% -1.73%
Profit before tax          (60,004)          60,188        135,160 124.56% -325.25%
Income tax           28,581         (22,617)         (38,712) 71.16% -235.45%
Net income          (31,424)          37,571          96,448 156.71% -406.93%

 

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BANCO AGRÍCOLA- EL SALVADOR

 

CONSOLIDATED BALANCE SHEET        
AND INCOME STATEMENT Quarter Growth
(COP million) 4Q16 3Q17 4Q17 4Q17/3Q17 4Q17/4Q16
ASSETS          
Gross loans      9,088,243      9,040,300      9,114,167 0.82% 0.29%
Allowances for loans        (345,148)       (352,015)       (357,496) 1.56% 3.58%
Investments         661,953        478,909        622,865 30.06% -5.90%
Other assets      3,536,233      3,420,320      3,564,526 4.22% 0.80%
Total assets    12,941,282    12,587,515    12,944,062 2.83% 0.02%
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
Deposits      8,365,813      8,689,015      9,191,818 5.79% 9.87%
Other liabilities      2,904,205      2,342,984      2,111,769 -9.87% -27.29%
Total liabilities    11,270,018    11,031,999    11,303,586 2.46% 0.30%
Shareholders' equity      1,671,264      1,555,516      1,640,476 5.46% -1.84%
Total liabilities and shareholders' equity    12,941,282    12,587,515    12,944,062 2.83% 0.02%
           
Interest income         225,387        228,409        248,671 8.87% 10.33%
Interest expense          (65,276)         (67,324)         (64,133) -4.74% -1.75%
Net interest income         160,111        161,085        184,538 14.56% 15.26%
Net provisions            6,796         (28,304)         (20,486) -27.62% -401.45%
Fees and income from service, net           36,830          43,033          46,069 7.05% 25.09%
Other operating income              (217)           (8,025)               433 -105.40% -299.86%
Total operating expense        (110,873)         (98,675)       (116,638) 18.20% 5.20%
Profit before tax           92,647          69,114          93,916 35.89% 1.37%
Income tax          (20,396)         (20,880)         (34,016) 62.91% 66.78%
Net income           72,251          48,234          59,900 24.19% -17.09%

 

 

GRUPO AGROMERCANTIL HOLDING – GUATEMALA

CONSOLIDATED BALANCE SHEET        
AND INCOME STATEMENT Quarter Growth
(COP million) 4Q16 3Q17 4Q17 4Q17/3Q17 4Q17/4Q16
ASSETS          
Gross loans      8,471,526      8,511,380      8,902,627 4.60% 5.09%
Allowances for loans        (113,892)       (155,975)       (188,369) 20.77% 65.39%
Investments      1,588,323      1,721,330      1,584,745 -7.93% -0.23%
Other assets      1,849,401      1,864,607      1,892,866 1.52% 2.35%
Total assets    11,795,358    11,941,343    12,191,869 2.10% 3.36%
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
Deposits      8,085,859      8,261,134      8,472,200 2.55% 4.78%
Other liabilities      2,391,568      2,371,227      2,375,695 0.19% -0.66%
Total liabilities    10,477,427    10,632,361    10,847,895 2.03% 3.54%
Non-controlling interest           20,700          20,261          20,709 2.21% 0.05%
Shareholders' equity      1,297,231      1,288,720      1,323,265 2.68% 2.01%
Total liabilities and shareholders' equity    11,795,358    11,941,343    12,191,869 2.10% 3.36%
           
Interest income         213,875        212,929        232,356 9.12% 8.64%
Interest expense          (90,020)         (89,680)         (91,336) 1.85% 1.46%
Net interest income         123,856        123,248        141,021 14.42% 13.86%
Net provisions          (67,194)         (24,915)         (40,232) 61.48% -40.13%
Fees and income from service, net           16,187          25,263          27,067 7.14% 67.21%
Other operating income           (4,195)          12,496          19,499 56.04% -564.84%
Total operating expense          (91,013)       (110,422)       (121,182) 9.74% 33.15%
Profit before tax          (22,359)          25,670          26,172 1.96% -217.05%
Income tax               354           (8,441)           (1,863) -77.93% -626.78%
Net income before non-controlling interest          (22,005)          17,229          24,309 41.09% -210.47%
Non-controlling interest           (1,124)              (853)              (709) -16.84% -36.89%
Net income          (23,129)          16,376          23,600 44.11% -202.04%

 

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4.RECENT DEVELOPMENTS

 

 

·October 11, 2017. Bancolombia S.A. announced the price of the public offering of USD 750,000,000 of its subordinated notes due October 18, 2027. The bonds have a 10 year maturity, an optional redemption right on the fifth year and a coupon of 4.875% payable semi-annually on April 18 and October 18, 2017, commencing on April 18.
·December 12, 2017. Bancolombia S.A. announced that Standard & Poor’s Global Ratings – S&P, in line with a downgrade in the rating of the Republic of Colombia, reviewed and downgraded the ratings of Bancolombia and its subsidiaries from BBB- to BB+.

  

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5.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) / (574) 4043917/ (574) 4041918.

E-mail: IR@bancolombia.com.co

Contacts: Alejandro Mejia (IR Manager) / Juliana Álvarez (Analyst) / Santiago López (Analista).

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

  

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BALANCE SHEET       Growth    
(COP million) Dec-16 Sep-17 Dec-17 dec-17 / sep-17 dec-17 / dec-16 % of Assets % of Liabilities
ASSETS              
Cash and balances at central bank        16,216,907        14,945,466        15,523,123 3.87% -4.28% 7.61%  
Interbank borrowings          1,606,506          2,810,198          1,761,460 -37.32% 9.65% 0.86%  
Reverse repurchase agreements and other similar secured lend          2,636,832             810,128             881,061 8.76% -66.59% 0.43%  
Financial assets investments        13,060,653        16,664,585        16,377,253 -1.72% 25.39% 8.03%  
Derivative financial instruments          1,677,970          1,316,828          1,134,372 -13.86% -32.40% 0.56%  
Loans and advances to customers      151,747,486      158,409,263      160,468,094 1.30% 5.75% 78.70%  
Allowance for loan and lease losses        (6,621,911)        (7,832,837)        (8,223,103) 4.98% 24.18% -4.03%  
Investment in associates and joint ventures          1,298,246          1,595,238          1,565,059 -1.89% 20.55% 0.77%  
Goodwill and Intangible assets, net          6,694,037          6,526,087          6,631,424 1.61% -0.94% 3.25%  
Premises and equipment, net          3,115,697          3,150,714          3,127,405 -0.74% 0.38% 1.53%  
Investment property          1,581,689          1,690,594          1,657,409 -1.96% 4.79% 0.81%  
Prepayments             310,759             357,337             287,550 -19.53% -7.47% 0.14%  
Tax receivables             581,153             871,142             256,721 -70.53% -55.83% 0.13%  
Deferred tax             222,862             711,680             148,614 -79.12% -33.32% 0.07%  
Assets held for sale and inventories             273,187             302,437             377,003 24.66% 38.00% 0.18%  
Other assets          1,858,971          1,764,016          1,934,766 9.68% 4.08% 0.95%  
Total assets      196,261,044      204,092,876      203,908,211 -0.09% 3.90% 100.00%  
LIABILITIES AND SHAREHOLDERS' EQUITY              
LIABILITIES               
Deposit by customers      124,624,011      127,891,132      131,959,215 3.18% 5.89% 64.72% 73.52%
Interbank Deposits             341,856          1,087,444          1,084,591 -0.26% 217.27% 0.53% 0.60%
Derivative financial instrument          1,312,450             966,207             945,853 -2.11% -27.93% 0.46% 0.53%
Borrowings from other financial institutions        18,905,843        16,848,383        13,822,152 -17.96% -26.89% 6.78% 7.70%
Debt securities in issue        18,704,809        19,365,423        19,648,714 1.46% 5.05% 9.64% 10.95%
Preferred shares             581,972             568,005             582,985 2.64% 0.17% 0.29% 0.32%
Repurchase agreements and other similar secured borrowing          1,924,010          4,219,154          3,236,128 -23.30% 68.20% 1.59% 1.80%
Liabilities relating to assets held for sale                       -                          -                102,976 0.00% 0.00% 0.05% 0.06%
Current tax             124,802             857,168             161,966 -81.10% 29.78% 0.08% 0.09%
Deferred tax          1,325,354          1,885,322          1,440,198 -23.61% 8.67% 0.71% 0.80%
Employees benefit plans             650,802             127,867             697,401 445.41% 7.16% 0.34% 0.39%
Other liabilities          5,288,155          6,915,040          5,796,482 -16.18% 9.61% 2.84% 3.23%
Total liabilities      173,784,064      180,731,145      179,478,661 -0.69% 3.28% 88.02% 100.00%
SHAREHOLDERS' EQUITY              
Share Capital             480,914             480,914             480,914 0.00% 0.00% 0.24%  
Additional paid-in-capital          4,857,454          4,857,454          4,857,454 0.00% 0.00% 2.38%  
Appropriated reserves          7,472,409          9,061,138          9,045,155 -0.18% 21.05% 4.44%  
Retained earnings          6,380,657          5,226,878          6,183,182 18.30% -3.09% 3.03%  
Accumulated other comprehensive income (loss), net of tax          2,076,149          2,490,464          2,546,259 2.24% 22.64% 1.25%  
Stockholders’ equity attributable to the owners of the parent company        21,267,583        22,116,848        23,112,964 4.50% 8.68% 11.33%  
Non-controlling interest          1,209,397          1,244,883          1,316,586 5.76% 8.86% 0.65%  
Total liabilities and equity      196,261,044      204,092,876      203,908,211 -0.09% 3.90% 100.00%  

  

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INCOME STATEMENT As of Growth       Growth
(COP million) Dec-16 Dec-17 dec-17 / dec-16 4Q 16 3Q 17 4Q 17 4Q 17 / 3Q 17 4Q 17 / 4Q 16
Interest income and expenses                
Interest on loans and financial leases                
Commercial      7,952,627      8,027,598 0.94%      2,130,624      1,968,634      1,983,801 0.77% -6.89%
Consumer      3,069,124      3,822,743 24.55%         856,279         990,309      1,022,645 3.27% 19.43%
Small business loans         236,979         237,266 0.12%           64,765           60,666           58,855 -2.99% -9.13%
Mortgage      1,767,761      1,831,716 3.62%         365,283         434,229         412,237 -5.06% 12.85%
Leasing      1,993,851      2,054,262 3.03%         534,417         501,359         494,914 -1.29% -7.39%
Interest income on loans and financial leases    15,020,342    15,973,585 6.35%      3,951,368      3,955,197      3,972,452 0.44% 0.53%
Interest income on overnight and market funds           20,968           26,779 27.71%             4,027             8,697             6,523 -25.00% 61.98%
Interest and valuation on Investment                
Debt investments, net         163,311         159,890 -2.09%           46,076           38,621           39,780 3.00% -13.66%
Net gains from investment activities at fair value through income statement                
Debt investments         579,403         699,841 20.79%           58,448         133,105         199,761 50.08% 241.78%
Derivatives            (4,750)          (61,667) 1198.25%           48,987            (7,138)          (27,433) 284.32% -156.00%
Repos            (7,636)        (116,860) 1430.38%             6,428          (28,232)          (37,073) 31.32% -676.74%
Others          (22,833)             4,109 118.00%          (20,585)             3,639            (2,405) -166.09% -88.32%
Total Net gains from investment activities at fair value through profit and loss         544,184         525,423 -3.45%           93,278         101,374         132,850 31.05% 42.42%
Total Interest and valuation on investments           707,495         685,313 -3.14%         139,354         139,995         172,630 23.31% 23.88%
Total interest and valuation    15,748,805    16,685,677 5.95%      4,094,749      4,103,889      4,151,605 1.16% 1.39%
Interest expense                
Borrowing costs        (723,385)        (672,472) -7.04%        (180,307)        (173,700)        (148,166) -14.70% -17.83%
Overnight funds            (6,345)          (15,860) 149.96%            (1,186)            (4,900)            (2,484) -49.31% 109.44%
Debt securities in issue     (1,335,192)     (1,191,000) -10.80%        (324,900)        (287,593)        (304,478) 5.87% -6.29%
Deposits     (3,878,528)     (4,279,316) 10.33%     (1,087,747)     (1,066,944)     (1,031,530) -3.32% -5.17%
Preferred Shares Dividends          (58,714)          (58,714) 0.00%          (14,980)          (14,578)          (14,980) 2.76% 0.00%
Other interest (expense)          (50,936)          (15,624) -69.33%          (22,372)            (4,179)            (3,968) -5.05% -82.26%
Total interest expenses     (6,053,100)     (6,232,986) 2.97%     (1,631,492)     (1,551,894)     (1,505,606) -2.98% -7.72%
Net interest margin and valuation income on financial instruments before impairment on loans and financial leases and off balance sheet credit instruments       9,695,705    10,452,691 7.81%      2,463,257      2,551,995      2,645,999 3.68% 7.42%
Credit impairment charges on loans and advance and financial leases     (2,930,239)     (3,879,559) 32.40%        (801,047)     (1,053,109)     (1,072,421) 1.83% 33.88%
Recovery of charged-off loans         286,529         410,860 43.39%           37,530           83,866         159,628 90.34% 325.33%
Credit impairment charges on/recoveries on off balance sheet credit instruments          (87,442)             6,854 107.84%            (7,993)             1,959          (17,575) -997.14% 119.88%
Total credit impairment charges, net     (2,731,152)     (3,461,845) 26.75%        (771,510)        (967,284)        (930,368) -3.82% 20.59%
Net interest margin and valuation income on financial instruments after impairment on loans and financial leases and off balance sheet credit instruments      6,964,553      6,990,846 0.38%      1,691,747      1,584,711      1,715,631 8.26% 1.41%
Fees and commissions income                
Banking services         816,839         885,512 8.41%         222,915         219,732         233,831 6.42% 4.90%
Credit and debit card fees and commercial establishments      1,092,919      1,164,380 6.54%         273,454         288,434         297,064 2.99% 8.63%
Brokerage           23,431           20,618 -12.01%             5,351             4,323             4,865 12.54% -9.08%
Acceptances and Guarantees           55,724           55,365 -0.64%           17,103           15,829           12,707 -19.72% -25.70%
Trust         294,499         359,651 22.12%           77,885           91,891           95,720 4.17% 22.90%
Bancassurance         336,692         408,248 21.25%           98,048         106,444         130,166 22.29% 32.76%
Payments and Collections         229,940         228,580 -0.59%           64,189           61,823           62,483 1.07% -2.66%
Others         435,191         464,553 6.75%         110,780           94,971         143,989 51.61% 29.98%
Fees and commission income      3,285,235      3,586,907 9.18%         869,725         883,447         980,825 11.02% 12.77%
Fees and commission expenses                
Banking services        (354,640)        (396,264) 11.74%          (94,776)          (98,731)        (107,782) 9.17% 13.72%
Others        (611,631)        (686,450) 12.23%        (183,958)        (178,204)        (215,415) 20.88% 17.10%
Fees and commission expenses        (966,271)     (1,082,714) 12.05%        (278,734)        (276,935)        (323,197) 16.71% 15.95%
Total fees and commissions, net      2,318,964      2,504,193 7.99%         590,991         606,512         657,628 8.43% 11.28%
Other operating income                
Derivatives FX contracts         164,172           21,917 -86.65%         150,291             4,936           34,391 596.74% -77.12%
Net foreign exchange         132,292         294,068 122.29%          (86,210)           48,770           42,686 -12.47% 149.51%
Hedging            (5,985)            (3,678) -38.55%           10,121                 (88)               (778) 784.09% -107.69%
Operating leases         493,486         563,861 14.26%         139,108         142,148         147,264 3.60% 5.86%
Gains (or losses) on sale of assets           60,282           40,600 -32.65%           23,961             1,971           27,152 1277.57% 13.32%
Other reversals             4,178             2,546 -39.06%             2,631                364                918 152.20% -65.11%
Others         638,698         713,032 11.64%         233,203         155,290         306,730 97.52% 31.53%
Total other operating income      1,487,123      1,632,346 9.77%         473,105         353,391         558,363 58.00% 18.02%
Dividends received, and share of profits of equity method investees                 
Dividends           39,785           32,248 -18.94%           11,043             4,351           11,152 156.31% 0.99%
Equity investments           77,799          (19,680) -125.30%            (2,903)             4,760           15,470 225.00% 632.90%
Equity method           60,254         253,602 320.89%             8,025           27,805         149,109 436.27% 1758.06%
Gains (Losses) on sale of Discontinued Operations            (1,146)                   -    -100.00%                   -                      -                      -    0.00% 0.00%
Impairment charges on joint ventures                   -           (173,339) 0.00%                   -                      -           (173,339) 0.00% 0.00%
Total dividends received, and share of profits of equity method investees         176,692           92,831 -47.46%           16,165           36,916             2,392 -93.52% -85.20%
Total operating income, net    10,947,332    11,220,216 2.49%      2,772,008      2,581,530      2,934,014 13.65% 5.84%

  

 15

 

 

 

INCOME STATEMENT As of Growth       Growth
(COP million) Dec-16 Dec-17 dec-17 / dec-16 4Q 16 3Q 17 4Q 17 4Q 17 / 3Q 17 4Q 17 / 4Q 16
Operating expenses                
Salaries and employee benefits     (2,356,512)     (2,417,959) 2.61%        (604,601)        (607,697)        (555,300) -8.62% -8.15%
Bonuses        (452,419)        (374,056) -17.32%        (175,391)        (132,340)           60,422 145.66% 134.45%
Other administrative and general expenses     (2,651,334)     (2,979,863) 12.39%        (766,371)        (745,306)        (901,266) 20.93% 17.60%
Tax contributions and other tax burden        (596,474)        (676,441) 13.41%        (177,032)        (203,726)          (32,472) -84.06% -81.66%
Impairment, depreciation and amortization        (517,809)        (478,883) -7.52%        (117,526)        (120,144)        (122,488) 1.95% 4.22%
Other expenses        (259,792)        (249,023) -4.15%          (75,474)          (58,956)          (68,682) 16.50% -9.00%
Equity Tax        (144,710)          (51,220) -64.61%                   -                      -                      -    0.00% 0.00%
Total operating expenses     (6,979,050)     (7,227,445) 3.56%     (1,916,395)     (1,868,169)     (1,619,786) -13.30% -15.48%
Profit before tax      3,968,282      3,992,771 0.62%         855,613         713,361      1,314,228 84.23% 53.60%
Income tax     (1,176,832)     (1,238,598) 5.25%         125,866        (245,307)        (345,556) 40.87% -374.54%
Profit for the year from continuing operations      2,791,450      2,754,173 -1.34%         981,479         468,054         968,672 106.96% -1.30%
Non-controlling interest          (89,619)        (139,173) 55.29%            (6,304)          (17,248)          (66,771) 287.12% 959.18%
Net income attributable to equity holders of the Parent Company      2,701,831      2,615,000 -3.21%         975,175         450,806         901,901 100.06% -7.51%
Net Income from discontinued operations          163,497                   -    -100.00%         155,804                   -                      -    0.00% -100.00%
Net income      2,865,328      2,615,000 -8.74%      1,130,979         450,806         901,901 100.06% -20.25%

 

 16

 

 

SIGNATURE

 

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

 

  BANCOLOMBIA S.A.
(Registrant)
     
Date:  February 21, 2018      By:   /s/  JAIME ALBERTO VELÁSQUEZ B.                      
    Name:   Jaime Alberto Velásquez B.  
    Title:   Vice President of Strategy and Finance