-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JEM35PoBsYh/yqIeWbTRMUI1e70HV93ZOiuxCE2oXdQ5ceLgE/6u/4XRtyomtcSg uk21Ia9W4qn8QE54743QtA== 0000950123-03-012282.txt : 20031107 0000950123-03-012282.hdr.sgml : 20031107 20031107063823 ACCESSION NUMBER: 0000950123-03-012282 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20031107 FILED AS OF DATE: 20031107 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BANCOLOMBIA SA CENTRAL INDEX KEY: 0001071371 STANDARD INDUSTRIAL CLASSIFICATION: COMMERCIAL BANKS, NEC [6029] IRS NUMBER: 000000000 STATE OF INCORPORATION: F8 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-09478 FILM NUMBER: 03983579 BUSINESS ADDRESS: STREET 1: CALLE 50 STREET 2: NO 51-66 CITY: MEDELLIN COLOMBIA STATE: F8 ZIP: 00000 6-K 1 y91470e6vk.txt BANCOLOMBIA S.A. CONFORMED COPY 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 2003 BANCOLOMBIA S.A. ---------------- (Translation of Registrant's name into English) Calle 50 No. 51-66 Medellin, Colombia ------------------ (Address of principal executive offices) (Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.) Form 20-F X Form 40-F ----- ----- (Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.) Yes No X ----- ----- (If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-______________.) This Report on Form 6-K shall be incorporated by reference into the registrant's registration statement on Form F-3 (File No. 333-12658). 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: November 7 , 2003 By /s/ JAIME ALBERTO VELASQUEZ B. Name: Jaime Alberto Velasquez B. Title: Vice President of Finance
[BANCOLOMBIA LETTERHEAD] CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2003 NOVEMBER 5, 2003. Medellin, Colombia - BANCOLOMBIA S.A. (NYSE: CIB) announced today the financial results for the quarter ended September 30, 2003. 1
CONSOLIDATED BALANCE SHEET AND INCOME STATEMENT QUARTER GROWTH ------- (Ps millions) 2Q 03 3Q 03 3Q 03/2Q 03 - ------------- ----- ----- ----------- ASSETS Loans, net .................................. 6,454,094 7,062,705 9.43% Investment Securities, net .................. 4,152,619 4,316,902 3.96% Other assets ................................ 3,190,868 2,570,614 -19.44% ---------- ---------- ------- TOTAL ASSETS ................................ 13,797,581 13,950,221 1.11% ========== ========== ======= LIABILITIES AND SHAREHOLDERS' EQUITY Deposits .................................... 9,594,710 9,461,540 -1.39% Other liabilities ........................... 2,722,686 2,938,474 7.93% TOTAL LIABILITIES ........................... 12,317,396 12,400,014 0.67% Shareholders' equity ........................ 1,480,185 1,550,207 4.73% ---------- ---------- ------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY .. 13,797,581 13,950,221 1.11% ========== ========== ======= Interest income ............................. 393,039 352,351 -10.35% Interest expense ............................ 114,087 118,619 3.97% NET INTEREST INCOME ......................... 278,952 233,732 -16.21% Net provisions .............................. (61,425) (45,693) -25.61% Other operating income ...................... 123,092 136,891 11.21% Other operating expense ..................... (195,297) (200,970) 2.90% Non-operating income, net ................... (5,863) 8,319 -241.89% Income tax expense .......................... (16,680) (13,875) -16.82% ---------- ---------- ------- NET INCOME .................................. 122,779 118,404 -3.56% ========== ========== =======
- -------- 1 This report corresponds to the intermediate consolidated financial statements of BANCOLOMBIA and its affiliated companies, where it owns, directly or indirectly, 50% or more of the capital stock with right to voting. For this reason, the financial information contained herein is not comparable to BANCOLOMBIA's consolidated results (with its financial subsidiaries) previously released. This information has been prepared in accordance with generally accepted accounting principles in Colombia, and is stated in nominal terms and has not been audited. All growth rates mentioned herein are not adjusted for inflation. ANY REFERENCE TO BANCOLOMBIA MUST BE UNDERSTOOD AS TO THE BANK AND ITS AFFILIATES, UNLESS OTHERWISE SPECIFIED. 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. Exchange rate: September 30, 2003 TRM COP 2,889.39/USD Average exchange rate Sep. 2003 2,840.08
- 1 - [BANCOLOMBIA LETTERHEAD] 1. HIGHLIGHTS: - BANCOLOMBIA's net income amounted to Ps 118.4 billion, or US$ 0.289 per ADS, during the quarter ended September 30, 2003, as compared to a net income of Ps 122.8 billion, or US$ 0.301 per ADS, for the quarter ended June 30, 2003. - Net interest margin decreased quarter over quarter to 8.2% from 9.9%. This decrease was the result of lower net interest income. - BANCOLOMBIA's total net provisions decreased from Ps 61.4 billion to Ps 45.7 billion quarter over quarter. - Total fees and income from services increased 15.6% quarter over quarter from Ps 81.2 billion to Ps 93.9 billion. - The Bank's gross loans increased 9.5% quarter over quarter from Ps 6,771.4 billion to Ps 7,414.8 billion. - BANCOLOMBIA's shareholders' equity increased 4.7% during the quarter ended September 30, 2003 as compared to the previous quarter. - BANCOLOMBIA's ratio of past due loans to total loans for the quarter ended September 30, 2003 decreased to 1.5% compared to 1.8% for the quarter ended June 30, 2003 and allowances for past due loans for the quarter ended September 30, 2003 increased to 324.6% compared to 264.9%, for the previous quarter. - The annualized ROAE (Return on average shareholders' equity) and ROAA (Return on average total assets) for the third quarter of 2003 were 33.8% and 3.6%, respectively. 2. CONSOLIDATED BALANCE SHEET 2.1 ASSETS BANCOLOMBIA's total assets increased 1.1% over the quarter to Ps 13,950 billion as of September 30, 2003 from Ps 13,798 billion as of June 30, 2003. The increase in total assets was primarily due to a larger loan portfolio and higher volume of trading debt securities. 2.1.1 LOAN PORTFOLIO BANCOLOMBIA's gross loans totaled Ps 7,415 billion as of September 30, 2003, an increase of 9.5% from Ps 6,771 billion as of June 30, 2003. Total corporate loans increased 10.4% during the third quarter of 2003 from Ps 4,594 billion as of June 30, 2003, to Ps 5,072 billion as of September 30, 2003. This increase resulted from growth in - 2 - [BANCOLOMBIA LETTERHEAD] working capital loans, and loans funded by domestic development banks, which increased 11.7% and 11.2%, respectively. Total retail loans increased 7.5% from Ps 2,137 billion as of June 30, 2003 to Ps 2,297 billion as of September 30, 2003, with working capital loans, and personal loans, increasing the most. In addition, net lease increased 7% from Ps 439 billion to Ps 470 billion quarter over quarter.
LOAN PORTFOLIO AS OF GROWTH ----- ------ (Ps millions) 30-SEP-02 30-JUN-03 30-SEP-03 3Q 03/2Q 03 3Q 03/3Q 02 - ------------- --------- --------- --------- ----------- ----------- CORPORATE Working capital loans .......... 3,293,222 3,987,546 4,453,082 11.67% 35.22% Loans funded by domestic development banks ... 363,609 384,138 427,178 11.20% 17.48% Trade Financing ................ 137,575 157,682 151,043 -4.21% 9.79% Overdrafts ..................... 29,877 58,123 33,826 -41.80% 13.22% Credit Cards ................... 5,017 6,813 7,343 7.78% 46.36% --------- --------- --------- ------- ------- TOTAL CORPORATE ................ 3,829,300 4,594,302 5,072,472 10.41% 32.46% ========= ========= ========= ======= ======= RETAIL Working capital loans .......... 979,794 775,193 842,020 8.62% -14.06% Personal loans ................. 500,991 621,117 687,207 10.64% 37.17% Loans funded by domestic development banks ... 261,736 307,304 333,839 8.63% 27.55% Credit Cards ................... 229,249 288,823 281,585 -2.51% 22.83% Overdrafts ..................... 134,383 106,965 102,801 -3.89% -23.50% Automobile loans ............... 17,310 25,898 28,915 11.65% 67.04% Trade Financing ................ 58,445 11,346 20,911 84.30% -64.22% --------- --------- --------- ------- ------- TOTAL RETAIL ................... 2,181,908 2,136,646 2,297,278 7.52% 5.29% MORTGAGE ....................... 35,584 40,499 45,002 11.12% 26.47% --------- --------- --------- ------- ------- TOTAL LOANS .................... 6,046,792 6,771,447 7,414,752 9.50% 22.62% ALLOWANCE FOR LOAN LOSSES ...... (336,911) (317,353) (352,047) 10.93% 4.49% --------- --------- --------- ------- ------- TOTAL LOANS, NET ............... 5,709,881 6,454,094 7,062,705 9.43% 23.69% ========= ========= ========= ======= =======
2.1.2 ASSET QUALITY As of September 30, 2003 the Bank's past due loans as a percentage of total loans were 1.5% as compared to 1.8% as of June 30, 2003. During the third quarter, BANCOLOMBIA had loan charge offs of Ps 38 million. During the nine months ended September 30, 2003, the Bank's charge offs totaled Ps 115,605 million as compared to Ps 46,777 million during the nine months ended September 30, 2002.
LOAN CLASSIFICATION AS OF 30-SEP-02 AS OF 30-JUN-03 AS OF 30-SEP-03 - ------------------- --------------- --------------- --------------- (Ps millions) "A" Normal ...................... 4,939,231 81.7% 5,806,722 85.7% 6,579,476 88.7% "B" Subnormal ................... 567,813 9.4% 526,778 7.8% 446,586 6.0% "C" Deficient ................... 88,901 1.5% 71,389 1.1% 68,630 0.9% "D" Doubtful recovery ........... 263,001 4.3% 273,872 4.0% 226,277 3.1% "E" Unrecoverable ............... 187,846 3.1% 92,686 1.4% 93,783 1.3% --------- ----- --------- ----- --------- ----- TOTAL ........................... 6,046,792 100% 6,771,447 100% 7,414,752 100% ========= ===== ========= ===== ========= ===== LOANS CLASSIFIED AS C, D AND E AS A PERCENTAGE OF TOTAL LOANS .. 8.9% 6.5% 5.2%
- 3 - [BANCOLOMBIA LETTERHEAD]
ASSET QUALITY AS OF GROWTH ----- (Ps millions) 30-SEP-02 30-JUN-03 30-SEP-03 3Q 03/2Q 03 3Q 03/3Q 02 - ------------- --------- --------- --------- ----------- ----------- Total performing past due loans .................. 37,552 48,713 25,711 -47.22% -31.53% Total non-performing past due loans (1) .......... 222,065 73,315 84,304 14.99% -62.04% Total past due loans ............................. 259,617 122,028 110,015 -9.84% -57.62% Allowance for loans and accrued interest losses .. 353,577 323,260 357,154 10.49% 1.01% Past due loans to total loans .................... 4.29% 1.80% 1.48% Non-performing loans to total loans .............. 3.67% 1.08% 1.14% C, D, and E loans to total loans ................. 8.93% 6.47% 5.24% Allowances to past due loans (2) ................. 136.19% 264.91% 324.64% Allowances to C, D, and E loans (2) .............. 65.51% 73.81% 91.89% Allowances to non-performing loans (2) ........... 159.22% 440.92% 423.65% Allowances to total loans ........................ 5.85% 4.77% 4.82% Performing loans to total loans .................. 96.33% 98.92% 98.86% ------- ------- -------
(1) Before January 1, 2002, non-performing loans included commercial and consumer loans that were past due 90 days or more, and mortgage loans that were past due 120 days or more. Since January 1, 2002, non-performing loans comprise consumer loans that are past due 60 days or more, commercial loans that are past due 90 days or more, and mortgage loans that are past due 120 days or more. (2) Allowance = allowance for loan and accrued interest losses. 2.2 LIABILITIES Total deposits decreased 1.4% over the quarter, from Ps 9,595 billion as of June 30, 2003, to Ps 9,461.5 billion as of September 30, 2003. During the third quarter of 2003, BANCOLOMBIA's funding mix improved as a result of a 5.4% increase in non-interest bearing deposits while interest-bearing deposits decreased 2.9%. The growth in non-interest bearing checking accounts was the result of seasonality, which tends to reach its highest level near the end of the year.
AS OF ----- FUNDING MIX COMPOSITION 30-SEP-02 30-JUN-03 30-SEP-03 - ----------------------- --------- --------- --------- NON-INTEREST BEARING ..... 18.87% 18.25% 19.50% Checking accounts ........ 17.63% 16.73% 17.85% Other .................... 1.24% 1.52% 1.64% ------ ------ ------ INTEREST BEARING ......... 81.13% 81.75% 80.50% Checking accounts ........ 8.50% 11.79% 10.63% Time deposits ............ 42.42% 44.04% 44.00% Savings deposits ......... 30.21% 25.92% 25.87% ------ ------ ------ TOTAL DEPOSITS ........... 100.00% 100.00% 100.00% ------ ------ ------
2.3 SHAREHOLDERS' EQUITY BANCOLOMBIA's shareholders' equity totaled Ps 1,550 billion during the third quarter. As of September 30, 2003, the Bank's consolidated ratio of technical capital to risk-weighted assets was 13.6%. Unrealized gains on investment debt securities totaled Ps 97.2 billion as of September 30, 2003. - 4 - [BANCOLOMBIA LETTERHEAD]
TECHNICAL EQUITY RISK WEIGHTED ASSETS AS OF ----- Consolidated (Ps millions) 30-SEP-02 30-JUN-03 30-SEP-03 - -------------------------- --------- --------- --------- Basic capital .......................... 731,660 969,178 1,079,512 Additional capital ..................... 135,098 275,264 255,796 Technical capital (1) .................. 866,758 1,244,442 1,335,308 ------- --------- --------- CAPITAL ADEQUACY (2) ................... 10.07% 12.64% 13.63% ------- --------- ---------
(1) Technical capital is the sum of basic capital and additional capital. (2) Capital Adequacy = Technical capital / risk weighted assets 3. INCOME STATEMENT BANCOLOMBIA's net income amounted to Ps 118.4 billion during the quarter ended September 30, 2003, as compared to net income of Ps 122.8 billion for the quarter ended June 30, 2003. This decrease during the third quarter of 2003 was mainly due to lower net interest income and higher operating expenses. 3.1 NET INTEREST INCOME Net interest income decreased 16.2% to Ps 233.7 billion for the quarter ended September 30, 2003, compared to net interest income of Ps 279.0 billion for the quarter ended June 30, 2003. However, net interest income as of September 30, 2003 increased 62.0% to Ps 741.3 billion from Ps 458.8 billion as of September 30, 2002. Total interest income decreased 10.4% over the quarter as a result of lower interest on investment securities, which decreased 27.9% as a result of lower valuation. Total interest expense increased 4% as a result of interest paid on overnight funds, which showed a high average volume during the quarter. 3.2 PROVISIONS Total net provisions for the third quarter of 2003 amounted to Ps 46 billion, decreasing 25.6% as compared to the previous quarter. 3.3 FEES AND INCOME FROM SERVICES Total fees and income from services totaled Ps 93.9 billion during the third quarter of 2003, increasing 15.6% from Ps 81.2 billion for the quarter ended June 30, 2003, with commissions from banking services, credit card merchant fees, and international operations, increasing the most. - 5 - [BANCOLOMBIA LETTERHEAD] BANCOLOMBIA's accumulated unconsolidated credit card billing increased 33.1% over the twelve-months ended September 30, 2003, resulting in a 17% market share of the Colombian credit card business. In addition, the Bank's unconsolidated number of outstanding credit cards increased 22.1% year over year, resulting in a 13.2% market share. (Source: Credibanco, American Express and Red Multicolor).
ACCUMULATED CREDIT CARD BILLING % 2003 (As of September 30, in Ps million) 2002 2003 Growth Mkt. Share - ----------------------------------- ---- ---- ------ ---------- Bancolombia Mastercard ............... 518,797 568,877 9.7% 9.7% Bancolombia VISA ..................... 241,601 284,440 17.7% 4.8% Bancolombia American Express ......... -- 158,833 -- 2.7% Total Bancolombia .................... 760,398 1,012,150 33.1% 17.2% --------- --------- ---- ---- Colombian credit card industry ....... 4,794,988 5,868,593 22.4% --------- --------- ----
Source: Credibanco, American Express and Red Multicolor
CREDIT CARD MARKET SHARE % 2003 Number of credit cards as of September 30, 2002 2003 Growth Mkt. Share - ------------------------------------------ ---- ---- ------ ---------- Bancolombia Mastercard ...................... 159,506 157,761 -1.1% 6.6% Bancolombia VISA ............................ 97,546 107,401 10.1% 4.5% Bancolombia American Express ................ -- 48,573 -- 2.0% Total Bancolombia ........................... 257,052 313,735 22.1% 13.2% --------- --------- ---- ---- Colombian credit card industry .............. 2,175,607 2,381,829 9.5% --------- --------- ----
Source: Credibanco, American Express and Red Multicolor. 3.4 OPERATING EXPENSES Operating expenses increased 3% quarter over quarter totaling Ps 195 billion during the quarter ended September 30, 2003. This increase in operating expenses was due to non-recurrent items. As a consequence, BANCOLOMBIA's efficiency ratio reached 54.2% for the quarter ended September 30, 2003. 3.5 OTHER OPERATING INCOME Total other operating income totaled Ps 43.0 billion during the third quarter increasing 2.7% from Ps 41.9 billion during the previous quarter. During the third quarter, CONAVI paid dividends of Ps 19.5 billion. Income from the foreign exchange business (spot and forward contracts) decreased 63.4% to Ps 6,394 million as of September 30, 2003 from Ps 17,465 million as of June 30, 2003. 4. SUBSIDIARIES BANCOLOMBIA PANAMA AND ITS SUBSIDIARIES The following table is expressed in US dollars. - 6 - [BANCOLOMBIA LETTERHEAD]
BANCOLOMBIA PANAMA BALANCE SHEET AND INCOME STATEMENT QUARTER GROWTH (US$) 2Q 03 3Q 03 3Q 03/2Q 03 - ----- ----- ----- ----------- ASSETS Loans, net ................................... 447,024,394 558,218,195 24.87% Investment securities, net ................... 449,454,713 450,850,332 0.31% Overnight funds sold ......................... 273,593,548 79,269,989 -71.03% Leases, net .................................. 46,991,662 44,749,940 -4.77% Other assets ................................. 23,036,134 33,426,209 45.10% ------------- ------------- ------- TOTAL ASSETS ................................. 1,240,100,451 1,166,514,665 -5.93% ============= ============= ======= LIABILITIES AND SHAREHOLDERS' EQUITY Deposits ..................................... 1,091,549,246 979,666,689 -10.25% Other liabilities ............................ 13,305,732 48,363,507 263.48% TOTAL LIABILITIES ............................ 1,104,854,978 1,028,030,196 -6.95% Shareholders' equity ......................... 135,245,473 138,484,469 2.39% ------------- ------------- ------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ... 1,240,100,451 1,166,514,665 -5.93% ============= ============= ======= Interest income .............................. 21,778,032 18,617,466 -14.51% Interest expense ............................. (5,547,066) (4,837,249) -12.80% NET INTEREST INCOME .......................... 16,230,966 13,780,217 -15.10% Net provisions ............................... (4,973,281) (3,295,903) -33.73% Other operating income ....................... 1,245,421 911,076 -26.85% Other operating expense ...................... (816,593) (665,732) -18.47% ------------- ------------- ------- NET INCOME ................................... 11,686,513 10,729,658 -8.19% ============= ============= =======
BANCOLOMBIA Panama's total assets decreased 5.9% over the quarter to US$1,167 million as of September 30, 2003 from US$1,240 million as of June 30, 2003. The decrease in total assets was driven by a decrease in overnight funds sold as a result of lower short-term deposits. BANCOLOMBIA Panama's shareholders' equity increased 2.4% over the quarter from US$135 million as of June 30, 2003, to US$138 million as of September 30, 2003. Unrealized gains on investment securities totaled US$25 million as of September 30, 2003, down 24.2% from US$33 million as of June 30, 2003. BANCOLOMBIA Panama reported net income of US$10.7 million during the quarter ended September 30, 2003 as compared to a net income of US$11.7 million for the quarter ended June 30, 2003, mainly due to lower net interest income resulting from the average volume of overnight funds sold and its low yield. - 7 - [BANCOLOMBIA LETTERHEAD] 5. CORPORATE RISK MAP Following the decisions of its leaders and through its Risk Vice Presidency, BANCOLOMBIA has set forth procedures that will integrate the risk concept into the strategic decision-making process. In order to integrate risk analysis into BANCOLOMBIA's strategic planning process, the development of the Corporate Risk Map was initiated. This map assists in the identification of risks that would hinder or prevent BANCOLOMBIA from meeting its business objectives and facilitates the analysis and implementation of strategies to mitigate such risks. The Corporate Risk Map is considered the main tool used by leading entities to: - Identify the organization's risk profile; - Identify the risks inherent in every new or existing business; - Analyze the effectiveness and cost benefit ratio of the existing mitigation strategies; - Select businesses based on their returns and their risks. Given that one of the BANCOLOMBIA's main challenges is growth, which could lead to the penetration of new segments and businesses in which it lacks former experience, it is necessary that these initiatives analyze the risk-return ratio from the very beginning. Consequently, the Bank's senior management and its affiliates are currently developing this Corporate Risk Map, which will enable us to obtain benefits by establishing an adequate balance of the assumed risk and the expected return, in such a way that it ensures the creation of shareholder value. 6. RECOGNITIONS AND OTHER DEVELOPMENTS - In September 2003, BANCOLOMBIA was named for the second consecutive year as Bank of the Year in Colombia by the magazine The Banker. - Last September, BANCOLOMBIA received from American Express, the international distinction "Exceptional Marketing Award" in recognition of BANCOLOMBIA's integral strategy in launching the AMERICAN EXPRESS Card. - On November 1st, 2003, BANCOLOMBIA signed a collective bargaining agreement with the labor union, Sintrabancol, and the industry union, Uneb. This agreement will be effective from November 2003 until October 2005. - 8 - [BANCOLOMBIA LETTERHEAD]
PRINCIPAL RATIOS QUARTERS -------- 3Q 02 2Q 03 3Q 03 ----- ----- ----- PROFITABILITY Net interest margin (1) ............................ 6.11% 9.92% 8.19% Return on average total assets (2) ................. 1.76% 3.77% 3.60% Return on average shareholders' equity (3) ......... 19.72% 36.63% 33.80% EFFICIENCY Operating expenses to net operating income (4) ..... 70.68% 48.58% 54.22% Operating expenses to average total assets (4) ..... 6.40% 6.00% 6.11% CAPITAL ADEQUACY Shareholders' equity to total assets ............... 8.14% 10.73% 11.11% Technical capital to risk weighted assets .......... 10.07% 12.64% 13.63%
(1) Defined as Net Interest Income divided by monthly average interest-earning assets. (2) Net income divided by monthly average total assets. (3) Net income divided by monthly average shareholders' equity. (4) Operating income includes net interest income, total fees and income from services, and total other operating income. The efficiency ratios contained herein are not comparable to those previously released by BANCOLOMBIA because merger expenses have been included as operating expenses.
STOCK INDICATORS QUARTERS -------- 3Q 02 2Q 03 3Q 03 ----- ----- ----- Net Income (Ps millions) ...... 48,260 122,779 118,404 USD Earnings per ADS .......... 0.122 0.301 0.289 ROAA .......................... 1.76% 3.77% 3.60% ROAE .......................... 19.72% 36.63% 33.80% P/BV ADS (1) .................. 0.55 1.36 1.28 P/BV Local (2) (3) ............ 1.01 1.36 1.35 Shares Outstanding ............ 576,695,395 576,695,395 576,695,395
(1) Defined as ADS price divided by ADS book value. (2) Defined as Share price divided by share book value. (3) Share prices on the Colombian Stock Exchange - 9 - [BANCOLOMBIA LETTERHEAD]
CONSOLIDATED BALANCE SHEET AS OF GROWTH ----- ------ (Ps millions) 30-SEP-02 30-JUN-03 30-SEP-03 3Q 03/2Q 03 3Q 03/3Q 02 - ------------- --------- --------- --------- ----------- ----------- ASSETS Cash and due from banks .......................... 579,774 691,319 647,289 -6.37% 11.65% Overnight funds sold ............................. 96,667 833,654 237,090 -71.56% 145.26% TOTAL CASH AND EQUIVALENTS ....................... 676,441 1,524,973 884,379 -42.01% 30.74% ---------- ---------- ---------- -------- -------- DEBT SECURITIES .................................. 3,843,688 4,002,565 4,172,574 4.25% 8.56% Trading .......................................... 1,720,477 1,413,992 1,632,419 15.45% -5.12% Available for Sale ............................... 1,525,533 1,835,468 1,809,865 -1.39% 18.64% Held to Maturity ................................. 597,678 753,105 730,290 -3.03% 22.19% EQUITY SECURITIES ................................ 361,604 243,259 241,050 -0.91% -33.34% Trading .......................................... 148,161 18,507 12,033 -34.98% -91.88% Available for Sale ............................... 213,443 224,752 229,017 1.90% 7.30% Market value allowance ........................... (64,211) (93,205) (96,722) 3.77% 50.63% NET INVESTMENT SECURITIES ........................ 4,141,081 4,152,619 4,316,902 3.96% 4.25% ---------- ---------- ---------- -------- -------- Gross Loans ...................................... 6,046,792 6,771,447 7,414,752 9.50% 22.62% Allowance for loan losses ........................ (336,911) (317,353) (352,047) 10.93% 4.49% NET TOTAL LOANS .................................. 5,709,881 6,454,094 7,062,705 9.43% 23.69% ---------- ---------- ---------- -------- -------- Accrued interest receivable on loans ............. 100,523 93,979 85,383 -9.15% -15.06% Allowance for accrued interest losses ............ (16,666) (5,907) (5,107) -13.54% -69.36% NET TOTAL INTEREST ACCRUED ....................... 83,857 88,072 80,276 -8.85% -4.27% ---------- ---------- ---------- -------- -------- Customers' acceptances and derivatives ........... 1,225 75,240 23,332 -68.99% 1804.65% Net accounts receivable .......................... 119,620 127,376 187,061 46.86% 56.38% Net premises and equipment ....................... 266,686 317,073 332,810 4.96% 24.79% Foreclosed assets ................................ 50,582 39,064 32,305 -17.30% -36.13% Prepaid expenses and deferred charges ............ 71,430 36,690 36,922 0.63% -48.31% Good will ........................................ 124,566 107,580 101,918 -5.26% -18.18% Net lease ........................................ 305,294 438,959 469,522 6.96% 53.79% Other ............................................ 189,350 166,903 165,060 -1.10% -12.83% Reappraisal of assets ............................ 235,340 268,938 257,029 -4.43% 9.22% ---------- ---------- ---------- -------- -------- TOTAL ASSETS ..................................... 11,975,353 13,797,581 13,950,221 1.11% 16.49% ========== ========== ========== ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES DEPOSITS NON-INTEREST BEARING ............................. 1,563,070 1,751,090 1,844,726 5.35% 18.02% Checking accounts ................................ 1,460,549 1,605,330 1,689,342 5.23% 15.66% Other ............................................ 102,521 145,760 155,384 6.60% 51.56% ---------- ---------- ---------- -------- -------- INTEREST BEARING ................................. 6,719,114 7,843,620 7,616,814 -2.89% 13.36% Checking accounts ................................ 703,880 1,131,381 1,005,903 -11.09% 42.91% Time deposits .................................... 3,513,249 4,225,196 4,163,304 -1.46% 18.50% Savings deposits ................................. 2,501,985 2,487,043 2,447,607 -1.59% -2.17% ---------- ---------- ---------- -------- -------- TOTAL DEPOSITS ................................... 8,282,184 9,594,710 9,461,540 -1.39% 14.24% Overnight funds .................................. 713,568 965,196 932,108 -3.43% 30.63% Bank acceptances outstanding ..................... 31,686 31,767 28,383 -10.65% -10.42% Interbank borrowings ............................. 594,810 179,579 380,167 111.70% -36.09% Borrowings from domestic development banks ....... 537,882 634,238 686,452 8.23% 27.62% Accounts payable ................................. 502,282 541,581 503,837 -6.97% 0.31% Other liabilities ................................ 152,934 131,105 133,571 1.88% -12.66% Bonds ............................................ 37,221 62,742 64,785 3.26% 74.05% Accrued expenses ................................. 99,663 131,899 168,752 27.94% 69.32% Minority interest in consolidated subsidiaries ... 48,116 44,579 40,419 -9.33% -16.00% ---------- ---------- ---------- -------- -------- TOTAL LIABILITIES ................................ 11,000,346 12,317,396 12,400,014 0.67% 12.72% ========== ========== ========== ======== ======== Shareholders' equity ............................. 975,007 1,480,185 1,550,207 4.73% 58.99% ---------- ---------- ---------- -------- -------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ....... 11,975,353 13,797,581 13,950,221 1.11% 16.49% ========== ========== ========== ======== ========
- 10 - [BANCOLOMBIA LETTERHEAD]
CONSOLIDATED INCOME STATEMENT AS OF QUARTER GROWTH - ----------------------------- ----- ------- ------ (Ps Millions) SEP-02 SEP-03 3Q 02 2Q 03 3Q 03 3Q 03/2Q 03 3Q 03/3Q 02 - ------------- ------ ------ ----- ----- ----- ----------- ----------- INTEREST INCOME AND EXPENSES Interest on loans ................................. 550,078 611,862 176,917 210,998 213,604 1.24% 20.74% Interest on investment securities ................. 232,640 415,632 63,018 163,734 118,098 -27.87% 87.40% Overnight funds sold and other interest ........... 5,384 14,433 178 5,161 5,725 10.93% 3116.29% Leasing ........................................... 28,653 40,071 9,385 13,146 14,924 13.53% 59.02% TOTAL INTEREST INCOME ............................. 816,755 1,081,998 249,498 393,039 352,351 -10.35% 41.22% ------- --------- ------- ------- ------- -------- -- ----- Interest expense Checking accounts ................................. 9,482 8,507 3,293 3,074 2,487 -19.10% -24.48% Time deposits ..................................... 205,896 171,767 59,777 57,500 59,173 2.91% -1.01% Savings deposits .................................. 80,092 85,410 25,631 29,906 28,211 -5.67% 10.07% TOTAL INTEREST ON DEPOSITS ........................ 295,470 265,684 88,701 90,480 89,871 -0.67% 1.32% ------- --------- ------- ------- ------- -------- -- ----- Interbank borrowings .............................. 8,409 3,550 3,505 691 1,175 70.04% -66.48% Borrowings from domestic development banks ........ 35,204 42,301 11,560 14,152 14,816 4.69% 28.17% Overnight funds and other interest ................ 18,896 29,097 4,842 8,764 12,757 45.56% 163.47% TOTAL INTEREST EXPENSE ............................ 357,979 340,632 108,608 114,087 118,619 3.97% 9.22% ------- --------- ------- ------- ------- -------- -- ----- NET INTEREST INCOME ............................... 458,776 741,366 140,890 278,952 233,732 -16.21% 65.90% Provision for loan and accrued interest losses, net (90,417) (122,282) (17,555) (43,038) (36,784) -14.53% 109.54% Recovery of charged-off loans ..................... 20,232 23,148 8,612 12,022 6,737 -43.96% -21.77% Provision for foreclosed assets and other assets .. (57,290) (72,443) (19,096) (33,003) (17,381) -47.34% -8.98% Recovery of provisions for foreclosed assets and other assets .................................... 24,346 5,059 4,707 2,594 1,735 -33.11% -63.14% ------- --------- ------- ------- ------- -------- -- ----- TOTAL NET PROVISIONS .............................. (103,129) (166,518) (23,332) (61,425) (45,693) -25.61% 95.84% NET INTEREST INCOME AFTER PROVISION FOR LOANS AND ACCRUED INTEREST LOSSES ....................... 355,647 574,848 117,558 217,527 188,039 -13.56% 59.95% ------- --------- ------- ------- ------- -------- -- ----- Commissions from banking services ................. 81,503 101,889 30,470 29,955 40,848 36.36% 34.06% Credit card merchant fees ......................... 31,039 41,219 11,198 13,673 15,536 13.63% 38.74% Credit and debit card annual fees ................. 36,422 43,126 12,555 14,853 14,926 0.49% 18.88% Checking fees ..................................... 30,557 37,629 10,353 13,683 12,903 -5.70% 24.63% Warehouse services ................................ 28,963 31,909 9,049 11,429 10,832 -5.22% 19.70% Commissions-fees from fiduciary activities ........ 25,581 27,971 8,257 10,252 9,643 -5.94% 16.79% Check remittance .................................. 15,123 15,667 4,985 5,121 5,208 1.70% 4.47% International operations .......................... 15,939 19,668 6,166 6,259 7,260 15.99% 17.74% TOTAL FEES AND OTHER SERVICE INCOME ............... 265,127 319,078 93,033 105,225 117,156 11.34% 25.93% ------- --------- ------- ------- ------- -------- -- ----- Fees and other service expenses ................... (40,614) (63,535) (15,096) (23,995) (23,255) -3.08% 54.05% TOTAL FEES AND INCOME FROM SERVICES ............... 224,513 255,543 77,937 81,230 93,901 15.60% 20.48% ------- --------- ------- ------- ------- -------- -- ----- OTHER OPERATING INCOME Net foreign exchange gains ........................ 72,731 11,808 39,212 (35,952) 39,210 -209.06% -0.01% Dividend income ................................... 15,769 30,255 10,024 1,257 19,466 1448.61% 94.19% Forward contracts in foreign currency ............. (40,745) 22,014 (33,265) 53,417 (32,816) -161.43% -1.35% Revenues from commercial subsidiaries ............. 32,989 53,059 11,226 21,403 16,956 -20.78% 51.04% Communication, postage and others ................. 5,729 5,217 1,621 1,737 174 -89.98% -89.27% TOTAL OTHER OPERATING INCOME ...................... 86,473 122,353 28,818 41,862 42,990 2.69% 49.18% ------- --------- ------- ------- ------- -------- -- ----- TOTAL INCOME ...................................... 666,633 952,744 224,313 340,619 324,930 -4.61% 44.86% OPERATING EXPENSES Salaries and employee benefits .................... 215,083 244,623 72,657 84,567 82,510 -2.43% 13.56% Compensation ...................................... 18,495 19,213 6,537 6,723 5,151 -23.38% -21.20% Administrative and other expenses ................. 244,639 279,832 86,993 88,803 96,978 9.21% 11.48% Donation expenses ................................. 408 462 12 14 437 3021.43% 3541.67% Depreciation ...................................... 25,406 28,345 8,836 9,528 10,232 7.39% 15.80% TOTAL OPERATING EXPENSES .......................... 504,031 572,475 175,035 189,635 195,308 2.99% 11.58% ------- --------- ------- ------- ------- -------- -- ----- NET OPERATING INCOME .............................. 162,602 380,269 49,278 150,984 129,622 -14.15% 163.04% Merger expenses ................................... 27,366 16,986 7,919 5,662 5,662 0.00% -28.50% NON-OPERATING INCOME (EXPENSE) Other income ...................................... 25,342 27,454 5,751 9,650 10,198 5.68% 77.33% Minority interest ................................. 14,755 538 16,601 706 1,271 80.03% -92.34% Recovery of deposit security ...................... 2,421 1,912 -- 1,912 -- -100.00% 0.00% Other expense ..................................... (27,689) (26,624) (5,823) (18,131) (3,150) -82.63% -45.90% TOTAL NON-OPERATING INCOME ........................ 14,829 3,280 16,529 (5,863) 8,319 -241.89% -49.67% INCOME BEFORE INCOME TAXES ........................ 150,065 366,563 57,888 139,459 132,279 -5.15% 128.51% Income tax expense ................................ (30,284) (43,527) (9,628) (16,680) (13,875) -16.82% 44.11% ------- --------- ------- ------- ------- -------- -- ----- NET INCOME ........................................ 119,781 323,036 48,260 122,779 118,404 -3.56% 145.35% ======= ========= ======= ======= ======= ======== == =====
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