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 November, 2007.

Comission File Number 001-32535

Bancolombia S.A.

(Translation of registrant’s name into English)

Calle 50 No. 51-66
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): 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)(2): o

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-________.

 

 

CONSOLIDATED FINANCIAL RESULTS
FOR THE QUARTER ENDED SEPTEMBER 30, 2007

November 7, 2007. Medellín, Colombia — Today, BANCOLOMBIA S.A. (“BANCOLOMBIA” or the “Bank”) (NYSE: CIB) announced its financial results for the third quarter of fiscal year 2007, ended September 30, 2007¹.

CONSOLIDATED BALANCE SHEET		Quarter
AND INCOME STATEMENT		Proforma				Proforma								Growth
(Ps millions)		3Q 06				2Q 07				3Q 07				3Q 07 / 2Q 07				3Q 07 / 3Q 06
ASSETS
Loans and financial leases, net			28,467,140				31,110,145				34,188,333				9.89	%			20.10	%
Investment securities, net			6,861,448				5,517,317				5,331,636				-3.37	%			-22.30	%
Other assets			6,933,817				8,383,636				9,163,991				9.31	%			32.16	%
Total assets			42,262,405				45,011,098				48,683,960				8.16	%			15.19	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits			26,285,109				29,540,131				30,641,803				3.73	%			16.57	%
Non-interest bearing			4,048,438				4,499,236				4,647,520				3.30	%			14.80	%
Interest bearing			22,236,671				25,040,895				25,994,283				3.81	%			16.90	%
Other liabilities			11,923,889				11,902,250				13,274,738				11.53	%			11.33	%
Total liabilities			38,208,998				41,442,381				43,916,541				5.97	%			14.94	%
Shareholders’ equity			4,053,407				3,568,717				4,767,419				33.59	%			17.62	%
Total liabilities and shareholders’ equity			42,262,405				45,011,098				48,683,960				8.16	%			15.19	%
Interest income			1,036,919				1,152,435				1,242,684				7.83	%			19.84	%
Interest expense			389,524				463,861				526,607				13.53	%			35.19	%
Net interest income			647,395				688,574				716,077				3.99	%			10.61	%
Net provisions			(106,478	)			(123,212	)			(192,709	)			56.40	%			80.98	%
Fees and income from service, net			273,584				271,361				283,549				4.49	%			3.64	%
Other operating income			1,819				47,291				95,682				102.33	%			5160.14	%
Operating expense			(541,494	)			(571,322	)			(550,826	)			-3.59	%			1.72	%
Non-operating income, net			(33,617	)			11,310				13,967				23.49	%			141.55	%
Income tax expense			(52,689	)			(82,703	)			(49,007	)			-40.74	%			-6.99	%
Net income			188,520				241,299				316,733				31.26	%			68.01	%

1		This report corresponds to the consolidated financial statements of BANCOLOMBIA and its affiliates of which it owns, directly or indirectly more than 50% of the voting capital stock. These financial statements have been prepared in accordance with generally accepted accounting principles in Colombia and the regulations of Superintendency of Finance in Colombia, collectively COL GAAP, and are stated in nominal terms and have not been audited. BANCOLOMBIA maintains accounting records in Colombian pesos, referred to herein as “Ps.” There have been no changes to the Bank’s principal accounting policies in the 3Q2007. The statements of income for the 3Q2007 are not necessarily indicative of the results that may be expected for the entire year or any other future interim period. For more information, please refer to the Company’s filings with the Securities and Exchange Commission, which are available on the Commission’s website at www.sec.gov.

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

The unaudited pro forma combined condensed financial statements are provided for illustrative purposes only and do not purport to represent what the actual consolidated results of operations or the consolidated financial position of Bancolombia would have been, nor are they necessarily indicative of future consolidated results of operations or consolidated financial position. The unaudited pro forma combined condensed financial statements do not include the realization of cost savings from operating efficiencies, revenue synergies or other restructuring costs currently expected to result from the acquisition of Banagrícola. No assurance can be given that any such savings or other expected benefits of the acquisition will in fact take place, whether at the level of management’s current expectations or at all.

Any reference to BANCOLOMBIA must be understood as referring to the Bank together with its affiliates, unless otherwise specified.

Representative Market Exchange Rate: September 30, 2007     Ps 2,023.19 = US$ 1     Average exchange rate September 2007 Ps 2,097.84 = US$ 1

Contacts
Sergio Restrepo		Jaime A. Velásquez		Juan Esteban Toro
Executive VP		Financial VP		IR Manager
Tel.: (574) 5108668		Tel.: (574) 5108666		Tel.: (574) 5108866

3Q07

1.

HIGHLIGHTS:

	•		This is the second time BANCOLOMBIA has released consolidated results since the acquisition of BANAGRÍCOLA S.A. (“BANAGRICOLA”) that took place during the second quarter of 2007. This report contains pro forma figures for the second quarter of the present year and pro forma figures for the third quarter of 2006 as if the acquisition had taken place on June 30, 2006. All references to numbers for periods prior to second quarter of 2007 were derived from such pro forma consolidated financial statements and are used herein for the purpose of comparison. Some assumptions were needed in order to complete the pro forma figures, the purchase transaction was simulated applying the same multiples, used on the acquisition, to the numbers that BANAGRICOLA had at that time and an issuance of subordinated bonds and preferred shares were simulated keeping a similar participation on the bank’s funding as they did in June 30 2007. BANCOLOMBIA’s management strongly recommends taking this into account before analyzing this financial report.
	•		Net income for the quarter ended September 30, 2007, totaled Ps 316.7 billion, representing an increase of 31.3% when compared to Ps 241.3 billion pro forma for the second quarter of 2007. As of September 30, 2007, the net income for the first nine months of this year totaled Ps 764.4 billion, an increase of 44% when compared with the pro forma figure for the same period last year.
	•		As of September 30, 2007, BANCOLOMBIA’s net loans and financial leases totaled Ps 34,188 billion, representing an increase of 9.9% when compared to Ps 31,110 billion for the second quarter of 2007 and an increase of 20.1% on a year-to-year basis from Ps 28,467 billion pro forma as of September 30, 2006.
	•		Net interest income as of September 30, 2007, totaled Ps 2,021 billion representing a 38.0% increase as compared to the pro forma figures for the first nine months of 2006.
	•		Allowances for Loan losses reached Ps 1,257 billion, increasing 12.5% over the quarter and 25.5% over the year on a pro forma basis. Net Provisions for the first nine months of this year increased significantly when compared with the pro forma figure for the same period of 2006 increasing 83.7%. This increase will be further analysed later on this report.
	•		Asset quality measures continue to be on comfortable levels. As of September 30, 2007, BANCOLOMBIA’s ratio of past due loans to total loans was 2.77%, and the ratio of allowances to past due loans was 131.14%. On the other hand, C,D and E loans as a percentage of total loans was 2.64% as of September 30, 2007.
	•		Annualized return on average shareholders equity as of September 30, 2007 is 24.4% and Efficiency measured as the ratio between operating expenses and net operating income was 55.4% for the same period.

3Q07

2.

CONSOLIDATED BALANCE SHEET

2.1.		Assets
		BANCOLOMBIA’s total assets reached Ps 48,684 billion as of September 30, 2007, up 15.2% when compared to Ps 42,262 billion pro forma as of September 2006. This growth is mainly due to the Ps 5,721 billion increase in net loans and financial leases estimated from the pro forma mentioned above.
2.1.1.		Loan Portfolio
		Total loans and financial leases represented 70.2% of assets as of September 30, 2007, amounting Ps 34,188 billion, a 9.89% increase when compared to June 30, 2007 and a 20.1% increase when compared to the pro forma figures as of September 30, 2006. Dynamic Loan portfolio growth continues among all segments as a result of the good performance of Colombian economy, the Bank’s primary market.
		Corporate loans were the most dynamic segment over the quarter, reaching Ps 17,871 billion as of September 30, 2007, representing a 12.9% increase as compared to Ps 15,835 billion as of June 30, 2007 and a 16.9% increase as compared to Ps 15,288 billion pro forma as of September 30, 2006.
		Retail and small and medium-sized enterprise (“SME”) loans amounted to Ps 10,224 billion as of September 30, 2007, representing an 8.2% increase as compared to Ps 9,447 billion as of June 30, 2007 and a 32.5% increase as compared to Ps 7,714 billion pro forma as of September 30, 2006.
		Financial leases amounted to Ps 4,333 billion as of September 30, 2007, representing an increase of 8.6% as compared to June 30, 2007, and an increase of 29.8% as compared to the pro forma figures as of September 30, 2006.
		Mortgage loans, amounted to Ps 3,017 billion as of September 30, 2007. The increase in mortgage loans including past securitizations was 7.0% and 23.8% when compared to June 30, 2007 and the pro forma figures as of September 30, 2006 respectively. BANCOLOMBIA securitized Ps 289 billion mortgage loans on July 4, 2007. It is important to highlight that the bank purchases some of the securities product of these securitizations, which account for debt investment securities on the investment portfolio. This does not represent an increase on the risk appetite of the Bank as these securities are backed by mortgage loans originated by BANCOLOMBIA, therefore, meeting the Bank’s credit risk standards.

3Q07

LOAN PORTFOLIO		As of												Growth
(Ps millions)		30-Sep-06				30-Jun-07				30-Sep-07				Sep-07/Jun-07				Sep-07/Sep-06
		Proforma
CORPORATE
Working capital loans			13,806,340				14,058,294				15,719,266				11.81	%			13.86	%
Loans funded by domestic development banks			493,854				608,272				852,098				40.09	%			72.54	%
Trade Financing			817,328				945,679				1,002,428				6.00	%			22.65	%
Overdrafts			110,658				145,706				140,692				-3.44	%			27.14	%
Credit Cards			59,504				76,867				156,576				103.70	%			163.14	%
TOTAL CORPORATE			15,287,684				15,834,818				17,871,060				12.86	%			16.90	%
RETAIL AND SMEs
Working capital loans			2,039,747				2,680,255				2,874,562				7.25	%			40.93	%
Personal loans			3,255,735				3,780,146				3,554,436				-5.97	%			9.17	%
Loans funded by domestic development banks			383,801				439,583				553,915				26.01	%			44.32	%
Credit Cards			926,065				1,126,592				1,701,169				51.00	%			83.70	%
Overdrafts			166,404				218,921				234,653				7.19	%			41.01	%
Automobile loans			861,847				1,121,268				1,214,440				8.31	%			40.91	%
Trade Financing			80,239				80,230				90,820				13.20	%			13.19	%
TOTAL RETAIL AND SMEs			7,713,838				9,446,995				10,223,995				8.22	%			32.54	%
MORTGAGE			3,129,387				2,955,711				3,017,151				2.08	%			-3.59	%
FINANCIAL LEASES			3,337,680				3,989,953				4,332,769				8.59	%			29.81	%
Total loans and financial leases			29,468,589				32,227,477				35,444,975				9.98	%			20.28	%
Allowance for loan losses and financial leases			(1,001,449	)			(1,117,332	)			(1,256,642	)			12.47	%			25.48	%
Total loans and financial leases, net			28,467,140				31,110,145				34,188,333				9.89	%			20.10	%

2.1.2.		Investment Portfolio
		As of September 30, 2007, BANCOLOMBIA’s net investment securities amounted to Ps 5,332 billion, representing a decrease of 3.4% when compared to June 30, 2007, and a decrease of 22.3% when compared to the pro forma figures as of September 30, 2006. As of September 30, 2007, investments in debt securities represented 97.0% of BANCOLOMBIA’s net investment securities.
		BANCOLOMBIA’s investments in debt securities amounted to Ps 5,174 billion (10.6% of total assets) by the end of the third quarter, decreasing 3.5% when compared to June 30, 2007 when such investments amounted to Ps 5,363 billion (11.9% of total assets) and 22.5% as compared to the pro-forma figures as of September 30, 2006, when such investments amounted to Ps 6,676 billion (15.8% of total assets). As explained in previous quarters the low exposure in debt securities is a result of the growth in the loan.
		The next table discloses the composition of the portfolio by type of issuer where TIPS is the name given in Colombia to the mortgage backed securities, which are originated by BANCOLOMBIA according to its credit policies.

		Govertment				Govertment				MBS				Corporate
Debt Securities		(Colombia)				(Others)				(TIPS)				(Others)
Trading			14	%			4	%			8	%			5	%
Available for sale			16	%			0	%			3	%			15	%
Held to Maturity			10	%			12	%			7	%			7	%
Total			40	%			16	%			18	%			27	%

3Q07

2.1.3.		Asset Quality
		As of September 30, 2007, the Bank’s past due loans accounted for 2.77% of total loans. Loans classified as C, D and E comprised 2.64% of total loans. In addition, the ratio of allowances to past due loans at the end of the quarter was 131.14%, while the ratio of allowances to loans classified as C, D and E at the end of the quarter was 137.44%.

LOANS AND FINANCIAL LEASES CLASSIFICATION		As of 30-Sep-06								As of 30-Jun-07								As of 30-Sep-07
(Ps millions)		Proforma
¨A¨ Normal			27,852,177				94.4	%			30,307,013				94.1	%			33,732,877				95.1	%
¨B¨ Subnormal			843,051				2.9	%			1,101,821				3.4	%			776,157				2.2	%
¨C¨ Deficient			283,384				1.0	%			260,297				0.8	%			248,459				0.7	%
¨D¨ Doubtful recovery			284,414				1.0	%			295,430				0.9	%			456,216				1.3	%
¨E¨ Unrecoverable			205,563				0.7	%			262,916				0.8	%			231,266				0.7	%
Total			29,468,589				100	%			32,227,477				100	%			35,444,975				100	%
Loans and financial leases classified as C, D and E as a percentage of total loans and financial leases			2.6	%							2.5	%							2.6	%

		As of
ASSET QUALITY		Proforma												Growth
(Ps millions)		30-Sep-06				30-Jun-07				30-Sep-07				3Q 07 / 2Q 07				3Q 07 / 3Q 06
Total performing past due loans (1)			452,232				387,295				435,868				12.54	%			-3.62	%
Total non-performing past due loans			321,038				486,762				544,985				11.96	%			69.76	%
Total past due loans			773,270				874,057				980,853				12.22	%			26.84	%
Allowance for loans and accrued interest losses			1,014,792				1,133,380				1,286,330				13.50	%			26.76	%
Past due loans to total loans			2.62	%			2.71	%			2.77	%
Non-performing loans as a percentage of total loans			1.09	%			1.51	%			1.54	%
“C”, “D” and “E” loans as a percentage of total loans			2.62	%			2.54	%			2.64	%
Allowances to past due loans (2)			131.23	%			129.67	%			131.14	%
Allowance for loan and accrued interest losses as a percentage of “C”, “D” and “E” loans (2)			131.22	%			138.45	%			137.44	%
Allowance for loan and accrued interest losses as a percentage of non-performing loans (2)			316.10	%			232.84	%			236.03	%
Allowance for loan and accrued interest losses as a percentage of total loans			3.44	%			3.52	%			3.63	%
Percentage of performing loans to total loans			98.91	%			98.49	%			98.46	%

(1)		Performing past due loans are loans upon which the Bank continues to recognize income although interest has not been received for the periods indicated. Once interest is unpaid on accrual loans for a longer period than is specified above, the loan is classified as non-performing. Under Colombian Banking regulations, a loan is past due when it is at least 31 days past the actual due date.
(2)		Allowance means allowances for loan and accrued interest losses

2.2.		Liabilities
		As of September 30, 2007, BANCOLOMBIA’s total deposits amounted to Ps 30,642 billion, representing an increase of 3.7% as compared to June 30, 2007, and an increase of 16.6% as compared to the pro forma figures as of September 30, 2006. The composition of the deposits did not change much on this quarter. However time deposits increased their share over total deposits to 42.3%. and savings deposits, observed a slight decrease representing 38.3% of total deposits. Checking accounts and other represented 17.9% and 1.6% respectively of the total deposits.

3Q07

		sep-06				Part .				jun-07				Part .				sep-07				Part .
Checking accounts			5.175.363				19,7	%			5.206.905				17,6	%			5.472.186				17,9	%
Time deposits			10.190.834				38,8	%			12.045.703				40,8	%			12.952.902				42,3	%
Savings deposits			10.563.713				40,2	%			11.938.893				40,4	%			11.737.909				38,3	%
Other			355.199				1,4	%			348.630				1,2	%			478.806				1,6	%
Total Deposits			26.285.109				100	%			29.540.131				100	%			30.641.803				100	%

		As of September 30, 2007, checking accounts and time deposits increased 23.4% and 7.5%, respectively as compared to June 30, 2007, whereas savings deposits decreased 1.7% on the same period. When compared to the pro forma figures as of September 30, 2006, savings deposits and time deposits increased 11.1% and 27.1% respectively, whereas checking accounts decreased 12.0% on the same period. The dynamic observed is highly influenced by the marginal reserve requirement imposed by the Colombian central bank on the first quarter of this year, which requires a marginal reserve of 27% on checking and savings accounts and 5% on marginal time deposits, producing a logical preference for time deposits over other kind of deposits.
2.3.		Shareholders’ Equity
		As of September 30, 2007 BANCOLOMBIA’s shareholders’ equity amounted to Ps 4,767 billion, representing an increase of 33.6% when compared to June 30, 2007. The increase is mainly explained by the stock issuance that took place on July. As a result of the issuance of 59,999,998 preferred shares the Bank increased its capital on an aggregate amount of Ps 927.6 billion.
		Unrealized losses on available-for-sale debt securities amounted to Ps 33.8 billion as of September 30, 2007. This result is due to the price decrease of Colombian government and corporate bonds.
		Also as of September 30, 2007, the Bank’s consolidated ratio of technical capital to risk-weighted assets was 13.28%, a major increase from the 11.85% as of June 30, 2007, and an even bigger increase from the 11.24% pro forma as of September 30, 2006. This increase was due particularly to the capital increase that took place during the month of July.

TECHNICAL CAPITAL RISK WEIGHTED ASSETS		Proforma
Consolidated (Ps millions)		Sep-06				Jun-07				Sep-07
Basic capital (Tier I)			3,692,370				3,382,308				4,526,042
Additional capital (Tier II)			495,858				1,297,599				1,124,654
Technical capital (1)			4,188,228				4,679,907				5,650,696
Risk weighted assets included market risk			37,268,789				39,507,368				42,549,517
CAPITAL ADEQUACY (2)			11.24	%			11.85	%			13.28	%

(1)		Technical capital is the sum of basic capital and additional capital
(2)		Capital Adequacy is technical capital divided by risk weighted assets

3Q07

3.		INCOME STATEMENT
		Despite higher provision charges BANCOLOMBIA’s net income presented solid results for the third quarter of the present year amounting Ps 316.7 billion on the period ended September 30, 2007, this figure represents an increase of 31.3% when compared to Ps 241.3 billion for the previous quarter and 68.0% when compared to Ps 188.5 billion pro forma for the third quarter of 2006.
3.1.		Net Interest Income
		Interest on loans totaled Ps 971.4 billion for the third quarter of 2007, increasing 12.0% when compared to Ps 866.9 billion pro forma for the previous quarter and 33.4% when compared to Ps 728.3 billion pro forma for the third quarter of 2006.
		The interest derived from the financial leases reached Ps 148.8 billion on the quarter increasing 12.3% over the quarter and 50.6% over the year in a demonstration of the good dynamic shown by this business line.
		Interest on investment securities amounted to Ps 93.0 billion, which represents a decrease of 21.2% when compared to the previous quarter and a decrease of 50.7% when compared to the third quarter pro forma figures of 2006. This is a consequence of a lower investment securities amount, combined with lower Colombian bond prices on the third quarter. This decrease is even more noticeable when the figures are compared with the performance of the third quarter of last year when Colombian bond’s prices had some appreciation as they recovered part of the losses presented on the second quarter of 2006.
		The total interest income had a solid performance increasing 7.8% when compared to last quarter’s results and 19.8% when compared with the third quarter of 2006. This growth can be explained mainly by the loan portfolio growth, the higher interest rates that the Bank captures through the variable rate portfolio and the re-pricing of short terms loans and was partly offset by the interest of investment securities for the reasons explained above.
		Interest expenses increased 13.5% over the quarter and 35.2% over the year as deposits interest rates catch up with the tightening cycle. However it is important to highlight that despite that fact, net interest margin remains above the levels seen during the year 2006, what can be understood comparing the growth on theirs accumulated figures for the nine months period; total interest income increased 34.8% over the year while total interest expense increase at a lower pace being up a 30.5% over the same period.
		Net interest margin was 6.99% when calculated for the quarter and 6.76% when calculated for the first nine months of 2007. BANCOLOMBIA expects net interest margin to be reduced in a moderate pace as competition for funding would keep adding pressure on the cost of deposits in Colombia, BANCOLOMBIA’s biggest market.
3.2.		Provisions
		During the third quarter of 2007, provisions for loan and interest losses amounted to Ps 203.0 billion, increasing 35.4% compared to the pro forma figures for the previous quarter and 62.4% when compared with the third quarter of 2006.
		To analyze the behavior of provisions charges is necessary to make an overview of, Colombia’s regulatory evolution on the matter, which is the one applied for the consolidated results of BANCOLOMBIA, meaning that even BANAGRÍCOLA’s provision charges are calculated under these requirements2.

3Q07

3.2.1. Colombia’s regulatory frame

The Bank establishes its loan allowances by classifying its loan portfolio according to the classification system determined by Colombia’s Superintendency of Finance, which depends on the past due days of the obligation and the credit category of such a loan. After the obligation is classified, the Bank applies to each such classification the allowance percentage formula, also as specified by Colombia’s Superintendency of Finance.

Additionally, Colombia’s Superintendency of Finance has required institutions subject to its supervision to develop a credit risk management system (Sistema de Administración de Riesgo Crediticio — “SARC”). Consequently, the Bank must establish, policies, methodologies, processes and structures to evaluate, rate, monitor, and control its credit risk, which include developing models to calculate an adequate level of provisions. Colombia’s Superintendency of Finance defined the required characteristics internal credit risk models must meet when evaluating the expected losses of the loan portfolio and established reference models, which must be used by financial institutions while the use of their internal models is approved. The reference models will be implemented by stages depending on the credit categories, the model for commercial loans is in place since July 1st 2007, and the model for consumer loan portfolio should be applied beginning on July 2008. Reference models for mortgage and small business loans have not yet been released.

Both internal and reference models require the quantification of expected losses through the following factors:

	•		Probability of default.
	•		Exposure at default.
	•		Loss given Default.

3.2.2. Source of provisions charges variation on the quarter

During 2007, the Bank has made the necessary adjustments to fulfill the requirements established by Colombia’s Superintendency of Finance, including the application of the reference model when calculating provisions for commercials loans, implemented for the first time on the third quarter 2007. As a result of this implementation, the provision charges increased on the quarter to meet the parameters of the model. Additionally, the general provision charges related to this credit category were replaced with individual provisions producing a tax benefit as individual provisions are tax deductible, while general provisions are not. This situation explains the decrease presented on income tax expenses for the quarter.

Additionally, there has been some changes on the quarter concerning the applicable allowance percentage formula for consumer loans which increased these percentages for the loans classified as “A” and “B”. Since these changes have to be applied to the whole consumer loan portfolio, producing an increase on provisions, Colombia’s Superintedency of Finance permitted banks to adjust their allowances on one year. Nonetheless, the Bank’s management decided to apply the whole adjustment on the third quarter 2007.

2		Additional information can be found on the form 20 –F for 2006, item 4 section E.3, that can be downloaded from BANCOLOMBIA investor relations website: http://www.grupobancolombia.com/investorRelations/index.asp. Superintendency of finance’s External Circular 039 of june, 2007, Superintendency of finance’s External Circular 040 of june, 2007.

3Q07

		The adjustment of BANAGRÍCOLA’s allowances to Colombia’s regulatory frame has continued, meaning additional non recurrent provisions on the third quarter of 2007, beside the recurrent provisions derived from its operation. It should be noted that these non recurrent provisions are only charged for consolidation purposes.
		In short, beside the current provisions charges due to the normal development of the credit business, the variation on provisions charges on the quarter are explained in a good extent to the implementation of the legal requirements on the subject. Specifically, the application of the reference model for commercial loans and the changes on the applicable percentage of allowances for consumer loans and the provisions generated from BANAGRICOLA’s allowances adjustment to Colombian regulation, combined with the loan growth and its direct effect on provisions charged on the period.
3.3.		Fees and Income from Services
		Net fees and income from services amounted to Ps 283.55 billion during the third quarter of 2007, increasing 4.5% when compared to the pro forma figures for the second quarter of 2007. It is important to highlight this good performance on the quarter’s figure as the annualized rate of increase has returned to levels not seen in recent quarters. On the other hand, the year over year comparison, was affected by the sale of ALMACENAR S.A., as the bank is no longer accounting any income from its warehouse services. Additionally, brokerages fees have not had the performance expected this year.
		During the third quarter of 2007, BANCOLOMBIA’s accumulated unconsolidated credit card billing increased 32.8%, resulting in a 22.5% market share of the Colombian credit card business. In addition, the number of outstanding credit cards issued by BANCOLOMBIA increased 25.2%, resulting in a 15.9% market share.

ACCUMULATED CREDIT CARD BILLING										%				2007
(Millions of pesos as of September 30, 2007)		September-06				September-07				Growth				Market Share
Bancolombia VISA			764,809				1,042,111				36.26	%			7.44	%
Bancolombia Mastercard			1,148,472				1,426,638				24.22	%			10.18	%
Bancolombia American Express			462,701				686,136				48.29	%			4.90	%
Total Bancolombia			2,375,982				3,154,884				32.78	%			22.52	%
Colombian Credit Card Market			11,342,122				14,007,441				23.50	%

Source: Credibanco y Redeban multicolor

CREDIT CARD MARKET SHARE										%				2007
(Outstanding credit cards as of September 30, 2007)		September-06				September-07				Growth				Market Share
Bancolombia VISA			225,827				287,666				27.38	%			5.65	%
Bancolombia Mastercard			285,188				335,430				17.62	%			6.59	%
Bancolombia American Express			134,081				184,701				37.75	%			3.63	%
Total Bancolombia			645,096				807,797				25.22	%			15.87	%
Colombian Credit Card Market			4,277,497				5,088,776				18.97	%

Source: Credibanco y Redeban multicolor

3.4.		Other Operating Income
		Total other operating income amounted to Ps 95.7 billion during the third quarter of 2007, increasing 102.3% when compared to the pro forma figures for the second quarter of 2007. This solid performance is mainly due to trading gains on foreign exchange operations and forward contracts.

3Q07

3.5.		Operating expenses and efficiency ratios
		BANCOLOMBIA’s total operating expenses decreased 4.4% as compared to the pro forma figures from the previous quarter, amounting to Ps 531.43 billion, which also represents a 3.7% increase as compared to Ps 512.41 billion for the third quarter 2006 pro forma.
		Personnel related expenses understood as the sum of salaries and employee benefit, Bonus plan payments and compensation decreased 1.3% over the quarter and increased 9.7% over the year when compared with the pro forma figures for second quarter of 2007 and third quarter of 2006 respectively. Administrative and other expenses decreased 5.2% on the quarter and increase 2.5% when compared to last year’s third quarter pro forma number for that line of expense.
		BANCOLOMBIA’s ratio of operating expenses to net operating income improved reaching 50.3% when compared with the pro forma figures ratio of 56.72% from the previous quarter and 58.7% on last years pro forma figures. On a nine-month accumulated basis, the income efficiency ratio reached 55.3%.
		The Bank’s efficiency measured as operating expenses over average total assets was 4.70% as compared to the 5.07% from the pro forma figures of the previous quarter and 4.89% during the first nine months of 2007.

PRINCIPAL RATIOS		Quarter												As of
		3Q 06(1)				2Q 07(2)				3Q 07(3)				Sep-06(4)				Sep-07(5)
PROFITABILITY		Proforma				Proforma								Proforma
Net interest margin (6)			6.93	%			7.02	%			6.99	%			5.23	%			6.76	%
Return on average total assets (7)			1.77	%			2.14	%			2.70	%			1.66	%			2.24	%
Return on average shareholders’ equity (8)			18.99	%			25.21	%			28.81	%			17.82	%			24.35	%
EFFICIENCY
Operating expenses to net operating income (9)			58.68	%			56.72	%			50.29	%			62.17	%			55.35	%
Operating expenses to average total assets			5.09	%			5.07	%			4.70	%			4.77	%			4.89	%
CAPITAL ADEQUACY
Shareholders’ equity to total assets			9.59	%			7.93	%			9.79	%
Technical capital to risk weighted assets			11.24	%			11.85	%			13.28	%

(1)		Calculated taking into account an average between the figures as of June 2006 and as of September 2006
(2)		Calculated takin into account an average between the figures as of March 2006 and as of June 2006
(3)		Calculated taking into account an average between the figures of June 2007, July 2007, August 2007 and September 2007
(4)		Calculated with the figures at the end of September 2006
(5)		Calculated with the average of Dec-06, Mar-07, Jun-07, Sep-07
(6)		Net interest income divided by monthly average interest-earning assets
(7)		Net income by monthly average assets
(8)		Net income by monthly average shareholders’ equity
(9)		Operating expenses divided by monthly average assets

3Q07

BALANCE SHEET		Proforma
														Last
(Millones de pesos)		Sep-06				Jun-07				Sep-07				Quarter				Annual
ASSETS
Cash and due from banks			2,629,746				3,405,203				2,846,131				-16.42	%			8.23	%
Overnight funds sold			394,873				513,713				1,691,508				229.27	%			328.37	%
Total cash and equivalents			3,024,619				3,918,916				4,537,639				15.79	%			50.02	%
Debt securities			6,675,601				5,363,253				5,173,644				-3.54	%			-22.50	%
Trading			2,567,227				1,999,470				1,745,887				-12.68	%			-31.99	%
Available for Sale			1,980,665				1,447,851				1,549,168				7.00	%			-21.79	%
Held to Maturity			2,127,709				1,915,932				1,878,589				-1.95	%			-11.71	%
Equity securities			256,764				231,115				235,401				1.85	%			-8.32	%
Trading			54,005				70,613				77,272				9.43	%			43.08	%
Available for Sale			202,759				160,502				158,129				-1.48	%			-22.01	%
Market value allowance			-70,917				-77,051				-77,409				0.46	%			9.15	%
Net investment securities			6,861,448				5,517,317				5,331,636				-3.37	%			-22.30	%
Commercial loans			18,204,824				19,581,261				21,789,482				11.28	%			19.69	%
Consumer loans			4,677,851				5,569,558				6,189,229				11.13	%			32.31	%
Small business loans			118,847				130,994				116,344				-11.18	%			-2.11	%
Mortgage loans			3,129,387				2,955,711				3,017,151				2.08	%			-3.59	%
Finance lease			3,337,680				3,989,953				4,332,769				8.59	%			29.81	%
Allowance for loan losses			-1,001,449				-1,117,332				-1,256,642				12.47	%			25.48	%
Net total loans and financial leases			28,467,140				31,110,145				34,188,333				9.89	%			20.10	%
Accrued interest receivable on loans			277,793				326,995				400,825				22.58	%			44.29	%
Allowance for accrued interest losses			-13,343				-16,048				-29,688				85.00	%			122.50	%
Net total interest accrued			264,450				310,947				371,137				19.36	%			40.34	%
Customers’ acceptances and derivatives			132,016				237,126				178,461				-24.74	%			35.18	%
Net accounts receivable			470,638				625,336				676,696				8.21	%			43.78	%
Net premises and equipment			872,847				885,393				806,688				-8.89	%			-7.58	%
Foreclosed assets, net			56,719				40,688				27,893				-31.45	%			-50.82	%
Prepaid expenses and deferred charges			99,956				119,440				133,953				12.15	%			34.01	%
Goodwill			740,752				873,854				917,025				4.94	%			23.80	%
Operating leases, net			160,077				345,446				414,959				20.12	%			159.22	%
Other			730,782				662,265				739,947				11.73	%			1.25	%
Reappraisal of assets			380,961				364,225				359,593				-1.27	%			-5.61	%
Total assets			42,262,405				45,011,098				48,683,960				8.16	%			15.19	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
DEPOSITS
Non-interest bearing			4,048,438				4,499,236				4,647,520				3.30	%			14.80	%
Checking accounts			3,693,239				4,150,606				4,168,714				0.44	%			12.87	%
Other			355,199				348,630				478,806				37.34	%			34.80	%
Interest bearing			22,236,671				25,040,895				25,994,283				3.81	%			16.90	%
Checking accounts			1,482,124				1,056,299				1,303,472				23.40	%			-12.05	%
Time deposits			10,190,834				12,045,703				12,952,902				7.53	%			27.10	%
Savings deposits			10,563,713				11,938,893				11,737,909				-1.68	%			11.12	%
Total deposits			26,285,109				29,540,131				30,641,803				3.73	%			16.57	%
Overnight funds			1,672,061				1,882,290				2,127,637				13.03	%			27.25	%
Bank acceptances outstanding			78,987				57,071				52,378				-8.22	%			-33.69	%
Interbank borrowings			2,461,016				1,752,518				1,170,339				-33.22	%			-52.44	%
Borrowings from domestic development banks			2,505,204				2,780,660				3,270,537				17.62	%			30.55	%
Accounts payable			938,196				1,573,156				2,191,160				39.28	%			133.55	%
Accrued interest payable			249,172				228,875				269,085				17.57	%			7.99	%
Other liabilities			495,531				486,007				479,070				-1.43	%			-3.32	%
Bonds			2,721,872				2,438,909				2,937,268				20.43	%			7.91	%
Accrued expenses			511,779				516,710				606,235				17.33	%			18.46	%
Minority interest in consolidated subsidiaries			290,071				186,054				171,029				-8.08	%			-41.04	%
Total liabilities			38,208,998				41,442,381				43,916,541				5.97	%			14.94	%
SHAREHOLDERS’ EQUITY
Subscribed and paid in capital			383,446				365,375				393,914				7.81	%			2.73	%
Retained earnings			3,051,109				2,612,363				3,789,802				45.07	%			24.21	%
Appropiated			2,520,448				2,164,669				3,025,375				39.76	%			20.03	%
Unappropiated			530,661				447,694				764,427				70.75	%			44.05	%
Reappraisal and others			615,511				614,218				617,514				0.54	%			0.33	%
Gross unrealized gain or loss on debt securities			3,341				-23,239				-33,811				45.49	%			-1112.00	%
Total shareholder’s equity			4,053,407				3,568,717				4,767,419				33.59	%			17.62	%

3Q07

INCOME STATEMENT		Proforma								Proforma				Proforma				Proforma								Proforma				Proforma
(Millones de pesos)		Sep-06				Sep-07				Sep-06/Sept-07				3Q 06				2Q 07				3Q 07				3Q 07/2Q 07				3Q 07/3Q 06
Interest income and expenses
Interest on loans			2,029,323				2,636,236				29.91	%			728,303				866,944				971,352				12.04	%			33.37	%
Interest on investment securities			194,416				310,728				59.83	%			188,733				118,077				92,996				-21.24	%			-50.73	%
Overnight funds			50,777				86,008				69.38	%			21,100				34,922				29,540				-15.41	%			40.00	%
Leasing			273,670				401,735				46.80	%			98,783				132,492				148,796				12.31	%			50.63	%
Total interest income			2,548,186				3,434,707				34.79	%			1,036,919				1,152,435				1,242,684				7.83	%			19.84	%
Interest expense
Checking accounts			29,173				28,481				-2.37	%			10,443				9,197				9,126				-0.77	%			-12.61	%
Time deposits			408,118				566,399				38.78	%			145,138				185,162				219,594				18.60	%			51.30	%
Savings deposits			194,016				331,535				70.88	%			75,302				117,569				119,021				1.24	%			58.06	%
Total interest on deposits			631,307				926,415				46.75	%			230,883				311,928				347,741				11.48	%			50.61	%
Interbank borrowings			127,710				91,068				-28.69	%			39,317				38,584				20,966				-45.66	%			-46.67	%
Borrowings from domestic development banks			135,970				192,806				41.80	%			47,572				64,267				73,029				13.63	%			53.51	%
Overnight funds			74,966				92,570				23.48	%			27,851				24,717				39,166				58.46	%			40.63	%
Bonds			113,706				110,882				-2.48	%			43,901				24,365				45,705				87.58	%			4.11	%
Total interest expense			1,083,659				1,413,741				30.46	%			389,524				463,861				526,607				13.53	%			35.19	%
Net interest income			1,464,527				2,020,966				37.99	%			647,395				688,574				716,077				3.99	%			10.61	%
Provision for loan and accrued interest losses, net			(278,470	)			(450,008	)			61.60	%			(124,989	)			(149,901	)			(203,047	)			35.45	%			62.45	%
Recovery of charged-off loans			60,630				65,472				7.99	%			20,905				21,995				24,222				10.13	%			15.87	%
Provision for foreclosed assets and other assets			(57,750	)			(53,721	)			-6.98	%			(6,446	)			(8,747	)			(22,963	)			162.52	%			256.24	%
Recovery of provisions for foreclosed assets and other assets			65,314				51,941				-20.47	%			4,052				13,441				9,079				-32.45	%			124.06	%
Total net provisions			(210,276	)			(386,316	)			83.72	%			(106,478	)			(123,212	)			(192,709	)			56.40	%			80.98	%
Net interest income after provision for loans and accrued interest losses			1,254,251				1,634,650				30.33	%			540,917				565,362				523,368				-7.43	%			-3.24	%
Commissions from banking services and other services			163,022				199,947				22.65	%			60,173				63,042				75,196				19.28	%			24.97	%
Electronic services and ATM fees			70,007				58,081				-17.04	%			23,947				18,227				20,955				14.97	%			-12.49	%
Branch network services			50,019				76,595				53.13	%			16,068				25,251				25,869				2.45	%			61.00	%
Collections and payments fees			65,536				93,496				42.66	%			22,471				31,148				32,937				5.74	%			46.58	%
Credit card merchant fees			9,524				28,106				195.11	%			5,210				8,608				8,800				2.23	%			68.91	%
Credit and debit card annual fees			181,596				185,745				2.28	%			62,434				63,161				66,000				4.49	%			5.71	%
Checking fees			44,981				49,646				10.37	%			15,575				16,653				16,546				-0.64	%			6.23	%
Warehouse services (2)			52,731				—				-100.00	%			18,719				—				—				0.00	%			*
Fiduciary activities			44,303				49,956				12.76	%			15,023				16,756				17,161				2.42	%			14.23	%
Pension plan administration			66,501				62,179				-6.50	%			22,366				19,444				20,912				7.55	%			-6.50	%
Brokerage fees			53,163				42,488				-20.08	%			16,125				15,696				12,539				-20.11	%			-22.24	%
Check remittance			17,283				16,798				-2.81	%			5,958				5,338				5,672				6.26	%			-4.80	%
International operations			27,237				31,189				14.51	%			10,136				10,270				10,357				0.85	%			2.18	%
Fees and other service income			845,903				894,226				5.71	%			294,205				293,594				312,944				6.59	%			6.37	%
Fees and other service expenses			(51,613	)			(73,255	)			41.93	%			(20,621	)			(22,233	)			(29,395	)			32.21	%			42.55	%
Total fees and income from services, net			794,290				820,971				3.36	%			273,584				271,361				283,549				4.49	%			3.64	%
Other operating income
Net foreign exchange gains			106,627				14,271				-86.62	%			(50,126	)			(68,951	)			100,996				246.48	%			301.48	%
Forward contracts in foreign currency			(26,452	)			69,706				-363.52	%			30,952				80,763				(40,634	)			-150.31	%			-231.28	%
Gains on sales of investments on equity securities			48,948				(15,224	)			-131.10	%			5,933				62				(101	)			-262.90	%			-101.70	%
Gains on sale of mortgage loan			—				857				*				—				—				857				*				*
Dividend income			21,631				18,606				-13.98	%			1,603				1,435				2,460				71.43	%			53.46	%
Revenues from commercial subsidiaries			31,223				66,369				112.56	%			9,272				27,306				22,854				-16.30	%			146.48	%
Insurance income			(4,184	)			1,493				-135.68	%			294				1,812				(676	)			-137.31	%			-329.93	%
Communication, postage, rent and others			11,957				19,200				60.58	%			3,891				4,864				9,926				104.07	%			155.10	%
Total other operating income			189,750				175,278				-7.63	%			1,819				47,291				95,682				102.33	%			5160.14	%
Total income			2,238,291				2,630,899				17.54	%			816,320				884,014				902,599				2.10	%			10.57	%
Operating expenses
Salaries and employee benefits			575,346				618,026				7.42	%			192,953				210,646				205,180				-2.59	%			6.34	%
Bonus plan payments			34,464				52,309				51.78	%			14,630				17,511				17,545				0.19	%			19.92	%
Compensation			3,394				17,239				407.93	%			1,669				4,279				6,826				59.52	%			308.99	%
Administrative and other expenses			711,599				799,584				12.36	%			252,817				273,364				259,065				-5.23	%			2.47	%
Deposit security, net			49,535				36,831				-25.65	%			20,131				12,022				12,515				4.10	%			-37.83	%
Donation expenses			1,388				2,395				72.55	%			480				648				601				-7.25	%			25.21	%
Depreciation			83,444				92,891				11.32	%			29,727				37,550				29,695				-20.92	%			-0.11	%
Total operating expenses			1,459,170				1,619,275				10.97	%			512,407				556,020				531,427				-4.42	%			3.71	%
Net operating income			779,121				1,011,624				29.84	%			303,913				327,994				371,172				13.16	%			22.13	%
Merger expenses			26,303				—				-100.00	%			13,825				—				—				0.00	%			*
Goodwill amortization (1)			36,741				50,716				38.04	%			15,262				15,302				19,399				26.77	%			27.11	%
Non-operating income (expense)
Other income			108,646				101,160				-6.89	%			18,845				29,598				37,003				25.02	%			96.35	%
Minority interest			(45,463	)			(26,072	)			-42.65	%			(10,998	)			(16,323	)			(2,174	)			-86.68	%			-80.23	%
Other expense			(78,396	)			(46,908	)			-40.17	%			(41,464	)			(1,965	)			(20,862	)			961.68	%			-49.69	%
Total non-operating income			(15,213	)			28,180				-285.24	%			(33,617	)			11,310				13,967				23.49	%			141.55	%
Income before income taxes			700,864				989,088				41.12	%			241,209				324,002				365,740				12.88	%			51.63	%
Income tax expense			(170,203	)			(224,661	)			32.00	%			(52,689	)			(82,703	)			(49,007	)			-40.74	%			-6.99	%
Net income			530,661				764,427				44.05	%			188,520				241,299				316,733				31.26	%			68.01	%