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 August 2003
BANCOLOMBIA S.A.
---------------------------------------------
(Translation of Registrant's name into English)
Calle 50 No. 51-66
Medellin, Colombia
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(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
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(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
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(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: August 4, 2003 By /s/ JAIME ALBERTO VELASQUEZ B.
Name: Jaime Alberto Velasquez B.
Title: Vice President of Finance
[BANCOLOMBIA LOGO]
CONSOLIDATED FINANCIAL RESULTS
FOR THE QUARTER ENDED JUNE 30, 2003
AUGUST 1, 2003. Medellin, Colombia - BANCOLOMBIA S.A. (NYSE: CIB) announced
today the financial results for the quarter ended June 30, 2003. (1)
CONSOLIDATED INCOME STATEMENT
AND BALANCE SHEET QUARTER GROWTH
(Ps millions) 1Q 03 2Q 03 2Q03/1Q03
---------- ---------- ----------
ASSETS
Loans, net 5,957,858 6,454,094 8.33%
Investment Securities, net 4,378,120 4,152,619 -5.15%
Other assets 2,556,518 3,190,868 24.81%
---------- ---------- -------
TOTAL ASSETS 12,892,496 13,797,581 7.02%
========== ========== =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits 9,184,624 9,594,710 4.46%
Other liabilities 2,423,317 2,722,686 12.35%
TOTAL LIABILITIES 11,607,941 12,317,396 6.11%
Shareholders' equity 1,284,555 1,480,185 15.23%
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 12,892,496 13,797,581 7.02%
========== ========== =======
Interest income 336,608 393,039 16.76%
Interest expense 107,926 114,087 5.71%
NET INTEREST INCOME 228,682 278,952 21.98%
Net provisions (59,400) (61,425) 3.41%
Other operating income 117,913 123,092 4.39%
Other operating expense (193,194) (195,297) 1.09%
Non-operating income, net 824 (5,863) -811.53%
Income tax expense (12,972) (16,680) 28.58%
---------- ---------- -------
NET INCOME 81,853 122,779 50.00%
========== ========== =======
-------------------
(1) The financial information contained herein includes the consolidated results
of all BANCOLOMBIA's subsidiaries in which it holds, directly or indirectly, 50%
or more of the outstanding voting shares. For this reason, the financial
information contained herein is not comparable to BANCOLOMBIA's consolidated
results (with its financial subsidiaries) previously released. The information
contained in this release has been prepared in accordance with Colombian GAAP,
expressed in nominal pesos, and has not been audited. All growth rates mentioned
herein are not adjusted for inflation. Unless otherwise specified, in this press
release "BANCOLOMBIA" or " the Bank" refers to the financial results of
BANCOLOMBIA S.A and its consolidated subsidiaries.
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: June 30, 2003 TRM COP 2,826.95/USD Average exchange rate June 2003 2,906.06
March 31, 2003 TRM COP 2,959.01/USD Average exchange rate March 2003 2,958.25
[BANCOLOMBIA LETTERHEAD]
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1. HIGHLIGHTS:
- BANCOLOMBIA's net income amounted to Ps 122.8 billion, or US$ 0.301
per ADS, during the quarter ended June 30, 2003, as compared to a
net income of Ps 81.9 million, or US$ 0.192 per ADS, for the quarter
ended March 31, 2003.
- Net interest margin increased quarter over quarter to 9.9% from
8.3%. This increase was the result of higher income from interest on
loans and on investment securities. Net interest income increased
almost 22% quarter over quarter.
- BANCOLOMBIA's total net provisions increased slightly from Ps (59.4)
billion to Ps (61.4) billion quarter over quarter, as a result of
higher provisions for foreclosed assets and other assets.
- During the quarter ended June 30, 2003, the Bank's gross loans
increased 7.2% quarter over quarter from Ps 6,317.9 billion to Ps
6,771.4 billion.
- BANCOLOMBIA's shareholders' equity increased 15.2% during the
quarter ended June 30, 2003.
- BANCOLOMBIA's ratio of past due loans to total loans for the quarter
ended June 30, 2003 decreased to 1.8% compared to 2.7% for the
quarter ended March 31, 2003 and allowances for past due loans for
the quarter ended June 30, 2003 increased to 264.9% compared to
226.8%, for the previous quarter.
- The annualized ROAE (Return on average shareholders' equity) and
ROAA (Return on average total assets) for the second quarter of 2003
were 36.6% and 3.8%, respectively.
2. CONSOLIDATED BALANCE SHEET
2.1 ASSETS
BANCOLOMBIA's total assets increased 7% over the quarter to Ps 13,798
billion as of June 30, 2003 from Ps 12,892 billion as of March 31, 2003.
The increase in total assets was primarily due to higher volume of
overnight funds sold and a larger loan portfolio.
2.1.1 LOAN PORTFOLIO
BANCOLOMBIA's gross loans totaled Ps 6,771 billion as of June 30, 2003, an
increase of 7.2% from Ps 6,318 billion as of March 31, 2003. Total
corporate loans increased 7.5% during the second quarter of 2003 from Ps
4,274 billion as of March 31, 2003, to Ps 4,594 billion as of June 30,
2003. This increase resulted from working capital loans and trade
financing which grew 7.7% and 14%, respectively. Total retail loans
increased 6.5% during the same period from Ps 2,005 billion as of March
31, 2003 to Ps 2,137 billion as of June 30, 2003, with working capital
loans, personal loans, and credit cards, increasing the most.
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In addition, net lease increased 8.4% from Ps 405 billion to Ps 439
billion quarter over quarter.
LOAN PORTFOLIO AS OF GROWTH
(Ps millions) 30-JUN-02 31-MAR-03 30-JUN-03 2Q03/1Q03 2Q03/2Q02
--------- --------- --------- --------- ---------
CORPORATE
Working capital loans 2,864,589 3,702,986 3,987,546 7.68% 39.20%
Loans funded by
domestic development banks 291,281 382,035 384,138 0.55% 31.88%
Trade Financing 124,384 138,357 157,682 13.97% 26.77%
Overdrafts 32,848 43,750 58,123 32.85% 76.95%
Credit Cards 3,649 6,632 6,813 2.73% 86.71%
--------- --------- --------- ------ ------
TOTAL CORPORATE 3,316,751 4,273,760 4,594,302 7.50% 38.52%
========= ========= ========= ====== ======
RETAIL
Working capital loans 920,758 722,657 775,193 7.27% -15.81%
Personal loans 463,985 586,251 621,117 5.95% 33.87%
Loans funded by
domestic development banks 208,980 294,363 307,304 4.40% 47.05%
Credit Cards 227,531 267,578 288,823 7.94% 26.94%
Overdrafts 127,138 98,241 106,965 8.88% -15.87%
Automobile loans 16,494 24,884 25,898 4.07% 57.01%
Trade Financing 45,886 11,431 11,346 -0.74% -75.27%
--------- --------- --------- ------ ------
TOTAL RETAIL 2,010,772 2,005,405 2,136,646 6.54% 6.26%
========= ========= ========= ====== ======
MORTGAGE 34,302 38,769 40,499 4.46% 18.07%
========= ========= ========= ====== ======
TOTAL LOANS 5,361,825 6,317,934 6,771,447 7.18% 26.29%
ALLOWANCE FOR LOAN LOSSES (302,958) (360,076) (317,353) -11.86% 4.75%
--------- --------- --------- ------ ------
TOTAL LOANS, NET 5,058,867 5,957,858 6,454,094 8.33% 27.58%
========= ========= ========= ====== ======
2.1.2 ASSET QUALITY
As of June 30, 2003 the Bank's past due loans as a percentage of total
loans were 1.8% as compared to 2.7% as of March 31, 2003. During the
second quarter, BANCOLOMBIA had loan charge offs of Ps 89,591 million.
LOAN CLASSIFICATION AS OF 30-JUN-02 AS OF 31-MAR-03 AS OF 30-JUN-03
( Ps millions) ------------------------- ------------------------- -------------------------
"A" Normal 4,341,491 81.0% 5,292,633 83.8% 5,806,722 85.7%
"B" Subnormal 491,043 9.2% 330,417 5.2% 526,778 7.8%
"C" Deficient 127,278 2.4% 229,841 3.7% 71,389 1.1%
"D" Doubtful recovery 281,485 5.2% 254,910 4.0% 273,872 4.0%
"E" Unrecoverable 120,528 2.2% 210,133 3.3% 92,686 1.4%
TOTAL 5,361,825 100% 6,317,934 100% 6,771,447 100%
--------- ---- --------- --- --------- ---
LOANS CLASSIFIED AS C, D AND E
AS A PERCENTAGE OF TOTAL LOANS 9.9% 11.0% 6.5%
=== ==== ===
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ASSET QUALITY AS OF GROWTH
( Ps millions) 30-JUN-02 31-MAR-03 30-JUN-03 2Q03/1Q03 2Q03/2Q02
--------- --------- --------- --------- ---------
Total performing past due loans 75,734 41,071 48,713 18.61% -35.68%
Total non-performing past due loans (1) 197,063 127,688 73,315 -42.58% -62.80%
Total past due loans 272,797 168,759 122,028 -27.69% -55.27%
Allowance for loans and accrued interest losses 326,001 382,757 323,260 -15.54% -0.84%
Past due loans to total loans 5.09% 2.67% 1.80%
Non-performing loans to total loans 3.68% 2.02% 1.08%
C, D, and E loans to total loans 9.87% 11.00% 6.47%
Allowances to past due loans (2) 119.50% 226.81% 264.91%
Allowances to C, D, and E loans (2) 61.59% 55.08% 73.81%
Allowances to non-performing loans (2) 165.43% 299.76% 440.92%
Allowances to total loans 6.08% 6.06% 4.77%
Performing loans to total loans 96.32% 97.98% 98.92%
(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 increased 4.5% over the quarter, from Ps 9,185 billion as
of March 31, 2003, to Ps 9,595 billion as of June 30, 2003. During the
second quarter of 2003, BANCOLOMBIA's interest-bearing deposits increased
5.8% driven by higher checking accounts and time deposits in BANCOLOMBIA
Panama.
2.3 SHAREHOLDERS' EQUITY
BANCOLOMBIA's shareholders' equity totaled Ps 1,480 billion during the
second quarter. As of June 30, 2003, the Bank's consolidated ratio of
technical capital to risk-weighted assets was 12.5%. Unrealized gains on
investment debt securities totaled Ps 128 billion as of June 30, 2003, up
17% from Ps 109.4 billion as of March 31, 2003.
TECHNICAL EQUITY RISK WEIGHTED ASSETS AS OF
Consolidated (Ps millions) 30-JUN-02 31-MAR-03 30-JUN-03
----------- ----------- -----------
Basic capital 762,832 850,820 969,178
Additional capital 225,995 247,857 275,264
Technical capital (1) 988,827 1,098,677 1,244,442
Risk weighted assets 8,966,749 9,178,035 9,928,616
--------- --------- ---------
CAPITAL ADEQUACY (2) 11.03% 11.97% 12.53%
========= ========= =========
(1) Technical capital is the sum of basic capital and additional capital.
(2) Capital Adequacy = Technical capital / risk weighted assets
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3. INCOME STATEMENT
BANCOLOMBIA's net income amounted to Ps 122.8 billion during the quarter
ended June 30, 2003, as compared to net income of Ps 81.9 billion for the
quarter ended March 31, 2003. This increase during the second quarter of
2003 was mainly due to an increase in net interest income and other
operating income.
3.1 NET INTEREST INCOME
Net interest income increased 22% to Ps 279 billion for the quarter ended
June 30, 2003, compared to Ps 228.7 billion for the quarter ended March
31, 2003. Total interest income increased 16.8% over the quarter as a
result of higher interest on loans and on investment securities, which
increased 12.7% and 22.4%, respectively. Interest on loans totaled Ps 211
billion during the second quarter of 2003 due to higher volume of the loan
portfolio. Additionally, the increase in interest on investment securities
was driven by gains on sales of investment portfolio and higher valuation.
3.2 PROVISIONS
Total net provisions for the second quarter of 2003 amounted to Ps 61.4
billion, which includes provisions for foreclosed assets and other assets
for Ps 33 billion.
3.3 FEES AND INCOME FROM SERVICES
Total fees and income from services totaled Ps 81.2 billion during the
second quarter of 2003, higher than the Ps 80.4 billion for the quarter
ended March 31, 2003, with checking fees, commissions and fees from
fiduciary activities and warehouses services increasing the most. The Bank
has began accounting for expenses related to the "Virtual Branch" and the
"Telephone Branch" as fees and other services expenses; they were formerly
classified as administrative and other expenses.
BANCOLOMBIA's accumulated unconsolidated credit card billing increased 30%
over the twelve-months ended June 30, 2003, resulting in a 17% market
share of the Colombian credit card business (Source: Credibanco, American
Express and Red Multicolor) .
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ACCUMULATED CREDIT CARD BILLING % 2003
(As of June 30, in Ps million) 2002 2003 Growth Mkt. Share
--------- --------- -------- ----------
Bancolombia Mastercard 332,871 363,633 9.2% 9.8%
Bancolombia VISA 155,716 176,322 13.2% 4.7%
Bancolombia American Express -- 94,443 -- 2.5%
Total Bancolombia 488,587 634,398 29.8% 17.0%
--------- --------- ---- -----
Colombian credit card industry 3,050,605 3,723,348 22.1% 100.0%
--------- --------- ---- -----
Source: Credibanco, American Express and Red Multicolor
CREDIT CARD MARKET SHARE % 2003
Number of credit cards as of June 30, 2002 2003 Growth Mkt. Share
--------- --------- ------ ----------
Bancolombia Mastercard 158,329 156,763 -1.0% 6.7%
Bancolombia VISA 94,335 102,598 8.8% 4.4%
Bancolombia American Express -- 42,682 -- 1.8%
Total Bancolombia 252,664 302,043 19.5% 13.0%
--------- --------- ---- -----
Colombian credit card industry 2,097,537 2,330,949 11.1% 100.0%
--------- --------- ---- -----
Source: Credibanco, American Express and Red Multicolor.
3.4 OPERATING EXPENSES
Operating expenses increased 1.1% quarter over quarter totaling Ps 189.6
billion during the quarter ended June 30, 2003. Administrative and other
expenses decreased as a result of the reclassification of certain expenses
related to fees and other services mentioned in section 3.3, above.
Salaries and employee benefits increased as a result of the payment and
the provision of the "Economic Value Added (EVA)" bonus system for the
current 6-month period. BANCOLOMBIA's efficiency ratio reached 48.6% for
the quarter ended June 30, 2003, improving from 55.7% for the quarter
ended March 31, 2003.
3.5 OTHER OPERATING INCOME
During the quarter, total other operating income increased 11.6% as a
result of higher income from BANCOLOMBIA's foreign exchange business (spot
and forward contracts) which amounted to Ps 17,465 million during the
quarter ended June 30, 2003, an increase of higher 75.3% when compared to
Ps 9,963 million during the quarter ended March 31, 2003.
In addition, revenues from commercial subsidiaries increased 45.6% from Ps
14,700 million to Ps 21,403 million quarter over quarter. This growth can
be mostly attributed to positive results at Valores Simesa and Abocol.
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4. SUBSIDIARIES
Since our previous quarterly earnings release, BANCOLOMBIA's quarterly
financial information includes the consolidated results of all of BANCOLOMBIA's
subsidiaries in which it holds, directly or indirectly, 50% or more of the
outstanding voting shares.
ENTITY LOCATION BUSINESS PARTICIPATION
------ -------- -------- -------------
Almacenes Generales de Deposito Mercantil Colombia Warehousing 98.25%
S.A. ALMACENAR
Fiducolombia S.A. Colombia Trust 96.16%
Bancolombia Panama S.A. Panama Banking 100%
Bancolombia Cayman S.A. Cayman Islands Banking 100%
Leasing Colombia S.A. Colombia Leasing 99.98%
Colcorp S.A. Corporacion Financiera Colombia Finance 100%
Comisionista de Colombia S.A. Colombia Securities Brokerage 99.99%
Abocol S.A. Colombia Chemical 92.30%
Valores Simesa S.A Colombia Various commercial 71.75%
investments
Inmobiliaria Bancol S.A. Colombia Real estate broker 98.95%
Fundicom S.A. Colombia Metals engineering 79.86%
Todo UNO Colombia Colombia e-commerce 53.92%
Unicargo de Colombia S.A. Colombia Freight service 98.35%
C.T.I. Cargo S.A. Colombia Freight service 93.32%
Sistema de Inversiones y Negocios S.A. Panama Commercial entity 100%
Sinesa Holding Company British Virgin Is Holding 100%
Future Net Inc. Panama e-commerce 60.02%
Compania Metalurgica Colombiana S.A COMECOL Colombia Metals engineering 39.65%
(1)
Sociedad Portuaria Mamonal S.A Colombia Customs office 92.68%
Abocol Costa Rica S.A Costa Rica Chemical products 92.41%
commercial
Fertillanos Ltda. Colombia Chemical Products 55.38%
commercial
(1) Controlled through other subsidiaries
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BANCOLOMBIA PANAMA AND ITS SUBSIDIARIES
The following table is expressed in US dollars.
BANCOLOMBIA PANAMA
INCOME STATEMENT
AND BALANCE SHEET QUARTER GROWTH
(US$) ------------------------------------- ---------
ASSETS 1Q 03 2Q 03 2Q03/1Q03
-------------- -------------- ---------
Loans, net 285,523,452 447,024,394 56.56%
Investment securities, net 492,197,901 449,454,713 -8.68%
Overnight funds sold 165,217,423 273,593,548 65.60%
Leases, net 47,455,437 46,991,662 -0.98%
Other assets 14,975,664 23,036,134 53.82%
-------------- -------------- -------
TOTAL ASSETS 1,005,369,877 1,240,100,451 23.35%
============== ============== =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits 880,564,141 1,091,549,246 23.96%
Other liabilities 15,984,225 13,305,732 -16.76%
TOTAL LIABILITIES 896,548,366 1,104,854,978 23.23%
Shareholders' equity 108,821,511 135,245,473 24.28%
-------------- -------------- -------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,005,369,877 1,240,100,451 23.35%
============== ============== =======
Interest income 23,046,910 21,778,032 -5.51%
Interest expense (5,608,946) (5,547,066) -1.10%
NET INTEREST INCOME 17,437,964 16,230,966 -6.92%
Net provisions (7,391,020) (4,973,281) -32.71%
Other operating income (1,542,934) 1,245,421 -180.72%
Other operating expense (847,877) (816,593) -3.69%
-------------- -------------- -------
NET INCOME 7,656,133 11,686,513 52.64%
============== ============== =======
BANCOLOMBIA Panama had a very dynamic quarter with total deposits increasing 24%
from US$881 million as of March 31, 2003, to US$1,092 million as of June 30,
2003. This increase was driven by checking accounts and time deposits, which
grew 26.8% and 24.2%, respectively. At the same time, BANCOLOMBIA Panama's total
assets increased 23.4% over the quarter to US$1,240 million as of June 30, 2003
from US$1,005 million as of March 31, 2003. This increase was the result of
higher loan portfolio and overnight funds, which increased 56.6% and 65.6%,
respectively. The increase in overnight funds was a result of the dynamic in
short-term deposits and lower volume in investment securities.
BANCOLOMBIA Panama's shareholders' equity increased 24.3% over the quarter from
US$109 million as of March 31, 2003, to US$135 billion as of June 30, 2003.
Unrealized gains on investment securities totaled US$33 million as of June 30,
2003, up 3.9% from US$31.8 as of March 31, 2003.
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BANCOLOMBIA Panama reported net income of US$ 11.7 million during the
quarter ended June 30, 2003 as compared to a net income of US$ 7.7 million
for the quarter ended March 31, 2003, mainly due to lower provisions.
5. CREDIT RISK REPORT
To generate competitive edges through integrated risk management, for over
a year, BANCOLOMBIA has been redefining the focus of its Credit Risk
Management System (SARC), not only by aligning it to the recommendations
made by the Basilea Committee and the recent requirements of the
Superintendency of Banking (SB), but also focused on taking advantage of
it as a management tool.
Said process implied the reconstruction of historical data, the creation
of information data repositories, and the development of careful test
processes and Audits. Additionally, a statistical method was developed to
calculate expected losses, including performance models, which allows the
Bank today to have an expected loss for different segments and
sub-segments (which is not only in the test process to meet the
requirements of Phase III of the SARC of the SB but is also beginning to
be used by the Bank's commercial processes).
The expected loss method is used, among others, for pricing, aiding the
development of a price scheme based on risk. The Bank is also using the
expected loss method to analyze business cases and to determine the future
profitability of commercial incentives. Likewise, it is one of the pillars
on which the added-value measurement system developed by the Bank is built
upon.
Finally, the Bank's high management may used the expected loss method to
define limits in order to optimize loan portfolio management. Moreover, a
follow-up method has been developed to enable monitoring the
aforementioned and generate early alerts
6. RATINGS, ACKNOWLEDGMENTS AND EVENTS
- Leasing Colombia was rated by the risk-rating firm BRC Investor
Services S.A., AA+ for long term debt and BRC1 for short-term
obligations.
- BANCOLOMBIA was acknowledged in June 2003 as the best bank for
Internet services in Colombia by the magazine Global Finance for the
second consecutive year.
- In late May, Comisionista de Colombia, began managing the Interrenta
Vista Fund and Interrenta 30 Fund for 1,200 clients.
- BRC Investor Services S.A., upgraded the rating of the "FIDUCUENTA"
fund (FIDUCOLOMBIA fund) from AA+ to AAA. Additionally, the
risk-rating firm, ratified the AAA rate for FIDUCOLOMBIA funds:
"FIDUDIVISAS" and "FIDUNACION".
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PRINCIPAL RATIOS QUARTERS
-----------------------------------
2Q 02 1Q 03 2Q 03
----- ----- -----
PROFITABILITY
Net interest margin (1) 7.44% 8.33% 9.92%
Return on average total assets (2) 1.37% 2.57% 3.77%
Return on average shareholders' equity (3) 14.84% 25.60% 36.63%
EFFICIENCY
Operating expenses to net operating income (4) 65.06% 55.74% 48.58%
Operating expenses to average total assets (4) 6.67% 6.07% 6.00%
CAPITAL ADEQUACY
Shareholders' equity to total assets 9.26% 9.96% 10.73%
Technical capital to risk weighted assets 11.03% 11.97% 12.53%
(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
--------------------------------------------------------------
2Q 02 1Q 03 2Q 03
---------------- --------------- ---------------
Net Income (Ps millions) 36,361 81,853 122,779
USD Earnings per ADS 0.107 0.192 0.301
ROAA 1.37% 2.57% 3.77%
ROAE 14.84% 25.60% 36.63%
P/BV ADS (1) 0.81 0.91 1.36
P/BV Local (2) (3) 0.99 1.03 1.36
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
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CONSOLIDATED BALANCE SHEET AS OF GROWTH
----------------------------------------------- ----------------------
(Ps millions) 30-JUN-02 31-MAR-03 30-JUN-03 2Q03/1Q03 2Q03/2Q02
----------- ----------- ----------- --------- ---------
ASSETS
Cash and due from banks 407,146 514,897 691,319 34.26% 69.80%
Overnight funds sold 181,103 455,176 833,654 83.15% 360.32%
TOTAL CASH AND EQUIVALENTS 588,249 970,073 1,524,973 57.20% 159.24%
----------- ----------- ----------- -------- --------
DEBT SECURITIES 3,621,622 4,160,656 4,002,565 -3.80% 10.52%
Trading 3,619,635 1,594,013 1,413,992 -11.29% -60.94%
Available for Sale -- 1,928,535 1,835,468 -4.83% --
Held to Maturity 1,987 638,108 753,105 18.02% 37801.61%
EQUITY SECURITIES 251,948 300,247 243,259 -18.98% -3.45%
Trading 251,948 80,605 18,507 -77.04% -92.65%
Available for Sale -- 219,642 224,752 2.33% --
Market value allowance (45,634) (82,783) (93,205) 12.59% 104.24%
NET INVESTMENT SECURITIES 3,827,936 4,378,120 4,152,619 -5.15% 8.48%
----------- ----------- ----------- -------- --------
Gross Loans 5,361,825 6,317,934 6,771,447 7.18% 26.29%
Allowance for loan losses (302,958) (360,076) (317,353) -11.86% 4.75%
NET TOTAL LOANS 5,058,867 5,957,858 6,454,094 8.33% 27.58%
----------- ----------- ----------- -------- --------
Accrued interest receivable on loans 98,634 93,702 93,979 0.30% -4.72%
Allowance for accrued interest losses (23,043) (22,681) (5,907) -73.96% -74.37%
NET TOTAL INTEREST ACCRUED 75,591 71,021 88,072 24.01% 16.51%
----------- ----------- ----------- -------- --------
Customers' acceptances and derivatives 6,105 14,641 75,240 413.90% 1132.43%
Net accounts receivable 86,498 128,832 127,376 -1.13% 47.26%
Net premises and equipment 265,142 326,007 317,073 -2.74% 19.59%
Foreclosed assets 53,388 43,710 39,064 -10.63% -26.83%
Prepaid expenses and deferred charges 52,495 53,045 36,690 -30.83% -30.11%
Good will 130,228 113,242 107,580 -5.00% -17.39%
Net lease 280,374 404,820 438,959 8.43% 56.56%
Other 204,054 176,539 166,903 -5.46% -18.21%
Reappraisal of assets 248,129 254,588 268,938 5.64% 8.39%
----------- ----------- ----------- -------- --------
TOTAL ASSETS 10,877,056 12,892,496 13,797,581 7.02% 26.85%
=========== =========== =========== ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
DEPOSITS
NON-INTEREST BEARING 1,440,617 1,767,314 1,751,090 -0.92% 21.55%
Checking accounts 1,364,139 1,603,879 1,605,330 0.09% 17.68%
Other 76,478 163,435 145,760 -10.81% 90.59%
----------- ----------- ----------- -------- --------
INTEREST BEARING 6,512,662 7,417,310 7,843,620 5.75% 20.44%
Checking accounts 591,768 896,113 1,131,381 26.25% 91.19%
Time deposits 3,803,800 3,963,257 4,225,196 6.61% 11.08%
Savings deposits 2,117,094 2,557,940 2,487,043 -2.77% 17.47%
----------- ----------- ----------- -------- --------
TOTAL DEPOSITS 7,953,279 9,184,624 9,594,710 4.46% 20.64%
Overnight funds 310,090 588,942 965,196 63.89% 211.26%
Bank acceptances outstanding 24,008 33,034 31,767 -3.84% 32.32%
Interbank borrowings 394,396 300,010 179,579 -40.14% -54.47%
Borrowings from domestic development banks 487,309 608,256 634,238 4.27% 30.15%
Accounts payable 387,013 521,454 541,581 3.86% 39.94%
Other liabilities 114,290 155,212 131,105 -15.53% 14.71%
Bonds 5,077 62,742 62,742 0.00% 1135.81%
Accrued expenses 132,937 107,547 131,899 22.64% -0.78%
Minority interest in consolidated subsidiaries 61,375 46,120 44,579 -3.34% -27.37%
----------- ----------- ----------- -------- --------
TOTAL LIABILITIES 9,869,774 11,607,941 12,317,396 6.11% 24.80%
=========== =========== =========== ======== ========
Shareholders' equity 1,007,282 1,284,555 1,480,185 15.23% 46.95%
----------- ----------- ----------- -------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 10,877,056 12,892,496 13,797,581 7.02% 26.85%
=========== =========== =========== ======== ========
[BANCOLOMBIA LETTERHEAD]
-11-
[BANCOLOMBIA LOGO]
CONSOLIDATED INCOME STATEMENT AS OF QUARTER GROWTH
--------------------- ---------------------------------- -----------------------
(Ps Millions) JUN-02 JUN-03 2Q 02 1Q 03 2Q 03 2Q03/1Q03 2Q03/2Q02
-------- -------- -------- -------- -------- --------- ---------
INTEREST INCOME AND EXPENSES
Interest on loans 373,161 398,258 181,734 187,260 210,998 12.68% 16.10%
Interest on investment securities 169,622 297,534 95,942 133,800 163,734 22.37% 70.66%
Overnight funds sold 5,206 8,708 2,086 3,547 5,161 45.50% 147.41%
Leasing 19,268 25,147 9,756 12,001 13,146 9.54% 34.75%
TOTAL INTEREST INCOME 567,257 729,647 289,518 336,608 393,039 16.76% 35.76%
-------- -------- -------- -------- -------- -------- --------
Interest expense
Checking accounts 6,189 6,020 3,044 2,946 3,074 4.34% 0.99%
Time deposits 146,119 112,594 70,599 55,094 57,500 4.37% -18.55%
Savings deposits 54,461 57,199 27,556 27,293 29,906 9.57% 8.53%
TOTAL INTEREST ON DEPOSITS 206,769 175,813 101,199 85,333 90,480 6.03% -10.59%
-------- -------- -------- -------- -------- -------- --------
Interbank borrowings 4,904 2,375 1,665 1,684 691 -58.97% -58.50%
Borrowings from domestic
development banks 23,644 27,485 12,984 13,333 14,152 6.14% 9.00%
Overnight funds 14,054 16,340 5,598 7,576 8,764 15.68% 56.56%
TOTAL INTEREST EXPENSE 249,371 222,013 121,446 107,926 114,087 5.71% -6.06%
-------- -------- -------- -------- -------- -------- --------
NET INTEREST INCOME 317,886 507,634 168,072 228,682 278,952 21.98% 65.97%
Provision for loan and accrued
interest losses (145,153) (89,232) (73,115) (43,967) (45,265) 2.95% -38.09%
Recovery of provisions for past due
loans and accrued interest losses 72,291 3,734 46,186 1,507 2,227 47.78% -95.18%
Recovery of charged-off loans 11,620 16,411 8,271 4,389 12,022 173.91% 45.35%
Provision for foreclosed assets and
other assets (38,194) (55,062) (31,250) (22,059) (33,003) 49.61% 5.61%
Recovery of provisions for
foreclosed assets and other
assets 19,639 3,324 6,565 730 2,594 255.34% -60.49%
-------- -------- -------- -------- -------- -------- --------
TOTAL NET PROVISIONS (79,797) (120,825) (43,343) (59,400) (61,425) 3.41% 41.72%
NET INTEREST INCOME AFTER PROVISION
FOR LOANS AND ACCRUED INTEREST
LOSSES 238,089 386,809 124,729 169,282 217,527 28.50% 74.40%
-------- -------- -------- -------- -------- -------- --------
Commissions from banking services 51,033 61,041 27,023 31,086 29,955 -3.64% 10.85%
Credit card merchant fees 19,841 25,683 10,101 12,010 13,673 13.85% 35.36%
Credit and debit card annual fees 23,867 28,200 12,085 13,347 14,853 11.28% 22.90%
Checking fees 20,204 24,726 10,415 11,043 13,683 23.91% 31.38%
Warehouse services 19,914 21,077 10,385 9,648 11,429 18.46% 10.05%
Commissions-fees from fiduciary
activities 17,324 18,328 9,498 8,076 10,252 26.94% 7.94%
Check remittance 10,138 10,459 4,973 5,338 5,121 -4.07% 2.98%
International operations 9,773 12,408 4,921 6,149 6,259 1.79% 27.19%
TOTAL FEES AND OTHER SERVICE INCOME 172,094 201,922 89,401 96,697 105,225 8.82% 17.70%
-------- -------- -------- -------- -------- -------- --------
Fees and other service expenses (25,518) (40,280) (13,357) (16,285) (23,995) 47.34% 79.64%
TOTAL FEES AND INCOME FROM SERVICES 146,576 161,642 76,044 80,412 81,230 1.02% 6.82%
-------- -------- -------- -------- -------- -------- --------
OTHER OPERATING INCOME
Net foreign exchange gains 33,519 (27,402) 35,479 8,550 (35,952) -520.49% -201.33%
Dividend income 5,745 10,789 1,569 9,532 1,257 -86.81% -19.89%
Forward contracts in foreign
currency (7,480) 54,830 (22,996) 1,413 53,417 3680.40% -332.29%
Revenues from commercial
subsidiaries 21,763 36,103 11,531 14,700 21,403 45.60% 85.61%
Communication, postage and others 4,108 5,043 2,085 3,306 1,737 -47.46% -16.69%
TOTAL OTHER OPERATING INCOME 57,655 79,363 27,668 37,501 41,862 11.63% 51.30%
-------- -------- -------- -------- -------- -------- --------
TOTAL INCOME 442,320 627,814 228,441 287,195 340,619 18.60% 49.11%
OPERATING EXPENSES
Salaries and employee benefits 142,426 162,113 71,932 77,546 84,567 9.05% 17.57%
Compensation 11,958 14,062 6,104 7,339 6,723 -8.39% 10.14%
Administrative and other expenses 157,646 182,854 80,822 94,051 88,803 -5.58% 9.87%
Donation expenses 396 25 24 11 14 27.27% -41.67%
Depreciation 16,570 18,113 8,401 8,585 9,528 10.98% 13.42%
TOTAL OPERATING EXPENSES 328,996 377,167 167,283 187,532 189,635 1.12% 13.36%
-------- -------- -------- -------- -------- -------- --------
NET OPERATING INCOME 113,324 250,647 61,158 99,663 150,984 51.49% 146.88%
Merger expenses 19,447 11,324 9,550 5,662 5,662 0.00% -40.71%
NON-OPERATING INCOME (EXPENSE)
Other income 19,591 17,256 10,489 7,606 9,650 26.87% -8.00%
Minority interest (1,846) (733) (1,067) (1,439) 706 149.06% -166.17%
Recovery of deposit security 2,421 1,912 -- -- 1,912 0.00% 100.00%
Other expense (21,866) (23,474) (13,977) (5,343) (18,131) 239.34% 29.72%
TOTAL NON-OPERATING INCOME (1,700) (5,039) (4,555) 824 (5,863) -811.53% 28.72%
INCOME BEFORE INCOME TAXES 92,177 234,284 47,053 94,825 139,459 47.07% 196.39%
Income tax expense (20,656) (29,652) (10,692) (12,972) (16,680) 28.58% 56.00%
-------- -------- -------- -------- -------- -------- --------
NET INCOME 71,521 204,632 36,361 81,853 122,779 50.00% 237.67%
======== ======== ======== ======== ======== ======== ========
[BANCOLOMBIA LETTERHEAD]
-12-