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 1933
For the month of August 2006
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. 001-32535).
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 02, 2006 By /s/ JAIME ALBERTO VELASQUEZ B.
-------------------------------------
Name: Jaime Alberto Velasquez B.
Title: Vice President of Finance
(BANCOLOMBIA LOGO) CIB
LISTED
NYSE
CONSOLIDATED FINANCIAL RESULTS
FOR THE QUARTER ENDED JUNE 30, 2006
AUGUST 2, 2006. Medellin, Colombia - Today, BANCOLOMBIA S.A. (NYSE: CIB)
announced its financial results for the second quarter of fiscal year 2006,
ended June 30, 2006.(1)
CONSOLIDATED BALANCE SHEET
AND INCOME STATEMENT
QUARTER
----------------------- GROWTH
(Ps millions) 1Q 06 2Q 06 2Q 06/ 1Q 06
---------- ---------- ------------
ASSETS
Loans and financial leases, net 18,365,410 21,084,601 14.81%
Investment securities, net 8,315,148 7,954,602 -4.34%
Other assets 4,284,405 4,448,419 3.83%
---------- ---------- --------
TOTAL ASSETS 30,964,963 33,487,622 8.15%
---------- ---------- --------
LIABILITIES AND SHAREHOLDERS' EQUITY
DEPOSITS 18,343,438 20,681,265 12.74%
Non-interest bearing 3,229,036 3,282,769 1.66%
Interest bearing 15,114,402 17,398,496 15.11%
OTHER LIABILITIES 9,422,199 9,590,872 1.79%
TOTAL LIABILITIES 27,765,637 30,272,137 9.03%
Shareholders' equity 3,199,326 3,215,485 0.51%
---------- ---------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 30,964,963 33,487,622 8.15%
---------- ---------- --------
Interest income 747,905 484,489 -35.22%
Interest expense 289,761 301,759 4.14%
NET INTEREST INCOME 458,144 182,730 -60.12%
Net provisions (50,678) (7,554) -85.09%
Fees and income from service, net 206,119 210,335 2.05%
Other operating income 84,938 87,677 3.22%
Operating expense (418,911) (426,601) 1.84%
Non-operating income, net 2,269 55,515 2,346.67%
Income tax expense (67,779) (33,054) -51.23%
---------- ---------- --------
NET INCOME 214,102 69,048 -67.75%
========== ========== ========
----------
(1) This report corresponds to the consolidated financial statements of
BANCOLOMBIA and its affiliates of which it owns, directly or indirectly,
50% or more of the voting capital stock. Any reference to BANCOLOMBIA must
be understood as referring to the Bank together with its affiliates, unless
otherwise specified. The unaudited pro forma combined condensed financial
statements for the second quarter of 2005 and the relevant numbers
developed from such financial statements presented below are derived from
(a) the unaudited consolidated financial statements of Bancolombia as of
June 30, 2005 (b) the unaudited consolidated financial statements of
Corporacion Financiera Nacional y Suramericana S.A. ("Corfinsura"), giving
effect to the spin-off of the portion of Corfinsura's assets and
liabilities that were not assumed by Bancolombia through the merger, as of
June 30, 2005 and (c) the unaudited consolidated financial statements of
Conavi Banco Comercial y de Ahorros S.A ("Conavi"), as of June 30, 2005, as
if the merger had been completed as of those dates.
These financial statements have been prepared in accordance with generally
accepted accounting principles in Colombia (COLGAAP), are stated in nominal
terms and have not been audited. Even though for purposes of COLGAAP historical
pro forma information is not required, these pro forma financial statements are
presented for comparison purposes. BANCOLOMBIA maintains accounting records in
Colombian pesos, referred to herein as "Ps."
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 merger. No
assurance can be given that any such savings or other expected benefits of the
merger 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.
Exchange rate: June 30, 2006 Ps 2,579.08 = US$ 1 Average exchange rate June
2006 Ps 2,361.40 = US$ 1
Contacts
SERGIO RESTREPO JAIME A. VELASQUEZ MAURICIO BOTERO
EXECUTIVE VP FINANCIAL VP IR MANAGER
TEL.: (574) 5108668 TEL.: (574) 5108666 TEL.: (574) 5108866
1
(BANCOLOMBIA LOGO)
2Q06
1. HIGHLIGHTS(2):
- Despite positive operating results for the second quarter of 2006, the
Bank's overall results were negatively impacted by the volatility of
the international capital markets. The Colombian sovereign bonds
sell-off, resulted in a drop in prices, as the benchmark TES 2020
yield rose from 7.62%, at the end of the first quarter, to 10.50% as
of June 30, 2006. This drove interest on investments to a loss of Ps
158,401 million, compared to the Ps 135,379 million gain from the
first quarter and to Ps 228,791 million gain from the second quarter
of 2005.
- As a result, net income for the second quarter of 2006 amounted to Ps
69,048 million, decreasing 71.7% as compared to Ps 243,522 million pro
forma for the second quarter of 2005, and 67.7% as compared to Ps
214,102 million for the first quarter of 2006.
- As of June 30, 2006, BANCOLOMBIA's net loans totaled Ps 21,085
billion, increasing 14.8% compared to Ps 18,365 billion in the
previous quarter and 25.1% on a year-to-year basis. Similarly,
interest on loans increased 4.7% quarterly and 8.1% yearly.
- The deposit mix improved for the quarter. Total deposits amounted to
Ps 20,681 billion increasing 12.7% for the quarter and 20.2% for the
year, while interest on deposits increased 5.4% for the quarter and
decreased 1.1% for the year.
- Net fees and income from services totaled Ps 210,335 million for the
quarter, increasing 19.6% compared to the pro forma figure for the
same period in 2005, and increasing 2.1% from the quarter ended on
March 31, 2006.
- The financial business grew during the first six months of 2006, while
the operating expenses remained stable for the quarter and increased
5.2% in a year over year basis, below the Bank's assets growth.
- BANCOLOMBIA's ratio of past due loans to total loans at June 30, 2006
was 2.7% and the ratio of allowances to past due loans was 130.7%.
STOCK INDICATORS
AS OF
---------------------
1Q 06 2Q 06 MAR-31-06 JUN-30-06
----------- ----------- --------- ---------
Net Income (Ps millions) 214,102 69,048 214,102 283,150
USD Earnings per ADS 0.513 0.147 0.513 0.603
ROAA 2.78% 0.91% 2.78% 1.87%
ROAE 25.11% 8.49% 25.11% 17.41%
P/BV ADS (1) 4.55 3.52
P/BV Local (2) (3) 4.45 3.03
P/E (4) 16.74 37.00
Shares Outstanding 727,827,005 727,827,005
(1) Defined as ADS price divided by ADS book value.
(2) Defined as Share price on the Colombian Stock Exchange divided by share
book value.
(3) Share prices on the Colombian Stock Exchange
(4) Defined as market capitalization divided by annualized quarter results
----------
(2) This is the fourth time BANCOLOMBIA has released consolidated quarterly
financial results since the merger that took place on July 30, 2005. This
report contains pro forma figures for the second quarter of 2005 as if the
spin off of Corfinsura and the merger with Conavi and Corfinsura (after the
spin-off) had taken place on that date, for the purpose of comparison. All
references to numbers for periods prior to the merger contained herein were
derived from such pro forma consolidated financial statements.
2
(BANCOLOMBIA LOGO)
2Q06
2. CONSOLIDATED BALANCE SHEET
2.1 ASSETS
BANCOLOMBIA's total assets for the quarter amounted to Ps 33,488 billion as
of June 30, 2006, increasing 8.15% as compared to Ps 30,965 billion as of
March 31, 2006. This represents an increase of 17.2% over the year from Ps
28,569 billion as of June 30, 2005. The assets growth is a result of the
positive dynamic of the loan portfolio.
2.1.1 LOAN PORTFOLIO
The loan portfolio presented very positive figures amounting to Ps 21,085
billion as of June 30, 2006, increasing 14.8% for the quarter and 25.1% on
a year-to-year basis.
Corporate loans presented a robust growth amounting to Ps 9,552 billion for
the quarter, increasing 17.5% as compared to Ps 11,224 billion in the
previous quarter. This represents an increase of 21.9% as compared to Ps
9,208 billion for the same period of 2005.
The retail and small and medium-sized enterprise ("SME") loans maintained
their positive growth rates. They amounted to Ps 5,806 billion as of June
30, 2006, increasing 12.3% over the quarter and 30.3% over the year.
Similarly, financial leases maintain their positive trend amounting to Ps
3,099 billion, increasing 8.7% over the quarter and 27.3% over the year.
In March, the Bank implemented a new commercial strategy based on 1% per
month fixed-rate ten year mortgages that resulted in a strong growth of the
mortgage loans during the second quarter, amounting to Ps 1,719 billion as
of June 30, 2006. This represents a 12.3% increase over the quarter, and an
18.1% increase over the year.
LOAN PORTFOLIO
GROWTH
30-JUN-05 AS OF -------------------------
(Ps millions) PRO FORMA 31-MAR-06 30-JUN-06 2Q 06/1Q 06 2Q 06/2Q 05
---------- ---------- ---------- ----------- -----------
CORPORATE
Working capital loans 7,299,250 8,414,643 9,983,764 18.65% 36.78%
Loans funded by
domestic development banks 1,174,277 433,435 394,049 -9.09% -66.44%
Trade financing 601,761 598,818 649,875 8.53% 8.00%
Overdrafts 96,980 74,824 147,057 96.54% 51.64%
Credit cards 36,101 30,233 49,363 63.28% 36.74%
---------- ---------- ---------- ----- ------
TOTAL CORPORATE 9,208,369 9,551,953 11,224,108 17.51% 21.89%
---------- ---------- ---------- ----- ------
RETAIL AND SMES
Working capital loans 1,474,432 1,663,145 1,878,090 12.92% 27.38%
Personal loans 1,426,152 1,613,637 1,807,138 11.99% 26.71%
Loans funded by
domestic development banks 368,252 406,196 405,651 -0.13% 10.16%
Credit Cards 497,677 613,549 700,157 14.12% 40.69%
Overdrafts 138,108 141,874 176,774 24.60% 28.00%
Automobile loans 480,300 675,834 760,980 12.60% 58.44%
Trade Financing 69,530 57,084 77,305 35.42% 11.18%
---------- ---------- ---------- ----- ------
TOTAL RETAIL AND SMES 4,454,451 5,171,319 5,806,095 12.27% 30.34%
---------- ---------- ---------- ----- ------
MORTGAGE 1,455,408 1,530,291 1,719,002 12.33% 18.11%
---------- ---------- ---------- ----- ------
FINANCIAL LEASES 2,434,171 2,850,547 3,099,021 8.72% 27.31%
---------- ---------- ---------- ----- ------
TOTAL LOANS AND FINANCIAL LEASES 17,552,399 19,104,110 21,848,226 14.36% 24.47%
ALLOWANCE FOR LOAN LOSSES AND FINANCIAL
LEASES (692,832) (738,700) (763,625) 3.37% 10.22%
---------- ---------- ---------- ----- ------
TOTAL LOANS AND FINANCIAL LEASES, NET 16,859,567 18,365,410 21,084,601 14.81% 25.06%
========== ========== ========== ===== ======
3
(BANCOLOMBIA LOGO)
2Q06
2.1.2 INVESTMENT PORTFOLIO
BANCOLOMBIA's investments in debt securities amounted to Ps 7,699 billion,
decreasing 5.3% over the quarter. Aside from the growth figures, important
changes in the debt securities portfolio took place during the quarter.
Trading debt securities decreased 26.0% over the quarter, while debt
securities classified as available for sale and held to maturity increased
43.4% and 21.3%, respectively.
2.1.3 ASSET QUALITY
As of June 30, 2006, the Bank's past due loans accounted for 2.7% of total
loans. Charged-off loans for the quarter amounted to Ps 57,203 billion.
Loans classified as C, D and E were 2.7% of total loans. Furthermore, the
ratio of allowances to past due loans at the end of the quarter was 130.7%,
very similar to the ratio of allowances to loans classified as C, D and E,
which was 129.6%.
LOANS AND FINANCIAL LEASES CLASSIFICATION
(Ps millions) AS OF 30-JUN-05 AS OF 31-MAR-06 AS OF 30-JUN-06
----------------- ----------------- -----------------
"A" Normal 16,255,409 92.6% 17,880,922 93.6% 20,437,368 93.6%
"B" Subnormal 628,849 3.1% 628,404 3.3% 814,255 3.7%
"C" Deficient 209,101 1.3% 208,751 1.1% 199,243 0.9%
"D" Doubtful recovery 284,589 2.1% 219,086 1.1% 247,670 1.1%
"E" Unrecoverable 174,451 0.9% 166,947 0.9% 149,690 0.7%
---------- ---- ---------- ---- ---------- ----
TOTAL 17,552,399 100% 19,104,110 100% 21,848,226 100%
========== ==== ========== ==== ========== ====
LOANS AND FINANCIAL LEASES CLASSIFIED
AS C, D AND E AS A PERCENTAGE OF TOTAL
LOANS AND FINANCIAL LEASES 3.8% 3.1% 2.7%
ASSET QUALITY
GROWTH
30-JUN-05 AS OF -------------------------
(Ps millions) PRO FORMA 31-MAR-06 30-JUN-06 2Q 06/1Q 06 2Q 06/2Q 05
--------- --------- ---------- ----------- -----------
Total performing past due loans 286,525 298,428 334,001 11.92% 16.57%
Total non-performing past due loans (1) 250,046 298,567 257,666 -13.70% 3.05%
Total past due loans 536,571 596,995 591,667 -0.89% 10.27%
Allowance for loans and accrued
interest losses 705,553 748,226 773,157 3.33% 9.58%
Past due loans to total loans 3.06% 3.12% 2.71%
Non-performing loans to total loans 1.42% 1.56% 1.18%
C, D, and E loans to total loans 3.81% 3.11% 2.73%
Allowances to past due loans (2) 131.49% 125.33% 130.67%
Allowances to C, D, and E loans (2) 105.60% 125.80% 129.59%
Allowances to non-performing loans (2) 282.17% 250.61% 300.06%
Allowances to total loans 4.02% 3.92% 3.54%
Performing loans to total loans 98.58% 98.44% 98.82%
(1) Non-performing loans comprise consumer loans that are past due 60 days or
more, commercial loans that are past due 90 days or more, small business
loans that are past due 30 days or more and mortgage loans that are past
due 60 days or more.
(2) Allowance means allowance for loan and accrued interest losses.
4
(BANCOLOMBIA LOGO)
2Q06
2.2 LIABILITIES
The Bank's deposits presented robust growth, amounting to Ps 20,681 billion
as of June 30, 2006, increasing 12.7% over the quarter and 20.2% over the
year. The deposit mix improved over the year. On a year-over-year basis,
interest-bearing deposits increased 18.4% while non-interest bearing
deposits increased 31.2%. Specifically, Checking and Savings accounts
increased 29.8% and 29.1%, respectively, while time deposits increased 7.2%
over the year, as compared to the 2005 pro forma figures.
2.3 SHAREHOLDERS' EQUITY
BANCOLOMBIA's shareholders' equity was stable for the quarter, amounting to
Ps 3,215 billion as of June 30, 2006. This represents an increase of 9.0%
over the year. Due to the decrease of Colombia's government bond prices
(TES), unrealized losses on available-for-sale debt securities amounted to
Ps 56.3 billion as of June 30, 2006.
At the end of the second quarter, the Bank's consolidated ratio of
technical capital to risk-weighted assets decreased to 11.3% mainly due to
the solid growth of the loan portfolio.
TECHNICAL CAPITAL RISK WEIGHTED ASSETS
30-JUN-05
Consolidated (Ps millions) PRO FORMA 31-MAR-06 30-JUN-06
---------- ---------- ----------
Basic capital (Tier I) 1,955,867 2,758,088 2,835,435
Additional capital (Tier II) 513,214 392,604 369,393
Technical capital (1) 2,469,081 3,150,692 3,204,828
Risk weighted assets included market risk 22,203,580 24,891,156 28,282,884
CAPITAL ADEQUACY (2) 11.12% 12.66% 11.33%
(1) Technical capital is the sum of basic capital and additional capital.
(2) Capital Adequacy is Technical capital divided by Risk weighted assets
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
5
(BANCOLOMBIA LOGO)
2Q06
3. INCOME STATEMENT
BANCOLOMBIA's net income amounted to Ps 69,048 million for the quarter
ended June 30, 2006, as compared to Ps 214,102 million for the previous
quarter and Ps 243,522 million pro forma for the second quarter of 2005.
This represents a decrease of 67.8% and 71.7%, respectively, due to the
losses resulting from the mark to market valuation of Colombian bond
prices.
3.1 NET INTEREST INCOME
Interest on loans totaled Ps 543,606 million for the second quarter of
2006, increasing 4.7% as compared to Ps 519,316 million for the previous
quarter and 8.1% compared to Ps 502,733 million pro forma for the second
quarter of 2005. On the other hand, interests on investment securities were
negatively impacted by the decrease of Colombian bond prices for the second
quarter of 2006 amounting to a total loss of Ps 158,401 million.
The most representative bond in the market is the COLOMBIA TES 20 which
matures in July 2020. As illustrated below, this bond was traded at a yield
of 7.62% as of March 31, 2006 and at 10.50% the end of the second quarter
it.
TES JULY 24/2020
(PERFORMANCE GRAPH)
(PLOT POINTS TO COME)
6
(BANCOLOMBIA LOGO)
2Q06
3.2 PROVISIONS
During the second quarter of 2006, provisions for loan and interest losses
amounted to Ps 67,228 million, increasing 4.7% and 53.6% as compared to the
previous quarter and to pro forma results for the second quarter of 2005,
respectively. Approximately Ps 8,000 million from these provisions
corresponds to adjustments made by the new provisioning regulation.
3.3 FEES AND INCOME FROM SERVICES
Contributions to income from the various sources of fee generation
continued to demonstrate a positive trend. Net fees and income from
services amounted to Ps 210,335 million, increasing 2.1% over the quarter
and 19.6% as compared to Ps 175,917 million pro forma results for the
second quarter of 2005.
BANCOLOMBIA's accumulated unconsolidated credit card billing increased
16.6% during the year, resulting in a 20.7% market share of the Colombian
credit card business. In addition, the Bank's number of outstanding credit
cards increased 14.7%, resulting in a 15.5% market share.
ACCUMULATED CREDIT CARD BILLING
June-05 % 2006
(Millons of pesos as of June 30, 2006) Pro Forma June-06 Growth Market Share
--------- --------- ------ ------------
Bancolombia VISA 399,535 478,560 19.78% 6.55%
Bancolombia Mastercard 657,110 728,557 10.87% 9.97%
Bancolombia American Express 239,210 303,287 26.79% 4.15%
TOTAL BANCOLOMBIA 1,295,855 1,510,404 16.56% 20.68%
--------- --------- -----
Colombian credit card market 5,583,171 7,304,603 30.83%
--------- --------- -----
Source: Credibanco, American Express and Red Multicolor
CREDIT CARD MARKET SHARE
June-05 % 2006
Outstanding credit cards as of June 30, 2006 Pro Forma June-06 Growth Market Share
--------- --------- ------ ------------
Bancolombia VISA 174,354 205,237 17.71% 5.28%
Bancolombia Mastercard 252,905 272,303 7.67% 7.01%
Bancolombia American Express 96,617 123,282 27.60% 3.17%
TOTAL BANCOLOMBIA 523,876 600,822 14.69% 15.47%
--------- --------- -----
Colombian credit card market 3,056,154 3,884,469 27.10%
--------- --------- -----
Source: Credibanco, American Express and Red Multicolor.
3.4 OTHER OPERATING INCOME
Other operating income totaled Ps 87,677 million during the second quarter
of 2006, increasing 3.2% over the quarter and 72.8% over the year. This
increase is mainly due to the net foreign exchange gains added to the
forward contracts in foreign currency, which amounted to Ps 64,387 million
during the quarter.
7
(BANCOLOMBIA LOGO)
2Q06
3.5 OPERATING EXPENSES
Total operating expenses were stable for the quarter, amounting to Ps
412,462 million, which represents a 6.0% increase on a year-over-year
basis.
As explain in section [1] of this document, the decrease in price of bonds
had a negative impact in the operating income of the Bank. BANCOLOMBIA's
operating expenses to net operating income efficiency ratio increase to
88.7% for the quarter. In a six month accumulated basis the income
efficiency ratio reached 68.7%.
The Bank's efficiency measured as operating expenses over average total
assets was to 5.63% for the quarter and 5.58% during the first half of
2006.
PRINCIPAL RATIOS
QUARTER
------------------------- AS OF
2Q 05 ---------------
PRO FORMA 1Q 06 2Q 06 JUN-05 JUN-06
--------- ----- ----- ------ ------
PROFITABILITY
Net interest margin (1) 8.22% 6.73% 2.67% 7.38% 4.69%
Return on average total assets (2) 3.41% 2.78% 0.91% 2.95% 1.87%
Return on average shareholders' equity (3) 33.02% 25.11% 8.49% 28.55% 17.41%
EFFICIENCY
Operating expenses to net operating income (4) 54.45% 55.91% 88.74% 56.73% 68.74%
Operating expenses to average total assets (4) 5.71% 5.44% 5.63% 5.67% 5.58%
CAPITAL ADEQUACY
Shareholders' equity to total assets 10.33% 10.33% 9.60%
Technical capital to risk weighted assets 11.12% 12.66% 11.33%
(1) Defined as Net Interest Income divided by monthly average interest-earning
assets.
(2) Net income divided by monthly average assets.
(3) Net income divided by monthly average shareholders' equity.
(4) Operating income includes net interest income, total net fees and income
from services, and total other operating income. Operating expenses include
merger expenses and good will amortization.
3.6 NON OPERATING INCOME - EXPENSES
Non-operating income for the second quarter of 2006 increased due to
non-recurrent events, amounting to Ps 55,515 million. Other income amounted
Ps 121,284 million due to the recovery of differed taxes provisions from
the investment portfolio and from the derivatives portfolio.
Non-operating expenses amounted to Ps 64,224 million, primarily due to the
following two events:
1. There were some adjustments as a result of the merger. The
corporate dissolution of 3001 S.A. (a subsidiary of Conavi S.A.)
took place during the quarter with two effects: a loss of Ps
30,108 million accounted as "other expenses" and a gain accounted
as "recovery of provisions for foreclosed assets and other
assets" that amounted to Ps 33,632 million.
2. There was a provision of Ps 20,285 million corresponding to legal
contingencies.
8
(BANCOLOMBIA LOGO)
2Q06
CONSOLIDATED BALANCE SHEET
GROWTH
-----------------
JUN-05 AS OF LAST
(Ps millions) PRO FORMA MAR-06 JUN-06 QUARTER ANNUAL
---------- ---------- ---------- ------- -------
ASSETS
Cash and due from banks 1,146,552 1,432,090 1,123,060 -21.58% -2.05%
Overnight funds sold 812,086 257,964 647,403 150.97% -20.28%
TOTAL CASH AND EQUIVALENTS 1,958,638 1,690,054 1,770,463 4.76% -9.61%
---------- ---------- ---------- ------- -------
DEBT SECURITIES 7,400,501 8,131,968 7,698,653 -5.33% 4.03%
Trading 4,080,234 5,393,302 3,990,245 -26.01% -2.21%
Available for Sale 2,474,099 1,749,010 2,508,292 43.41% 1.38%
Held to Maturity 846,168 989,656 1,200,116 21.27% 41.83%
EQUITY SECURITIES 213,193 256,589 334,519 30.37% 56.91%
Trading 31,678 56,378 137,378 143.67% 333.67%
Available for Sale 181,515 200,211 197,141 -1.53% 8.61%
Market value allowance (64,532) (73,409) (78,570) 7.03% 21.75%
NET INVESTMENT SECURITIES 7,549,162 8,315,148 7,954,602 -4.34% 5.37%
---------- ---------- ---------- ------- -------
Commercial loans 11,441,432 12,062,241 14,052,561 16.50% 22.82%
Consumer loans 2,125,156 2,547,051 2,903,674 14.00% 36.63%
Small business loans 96,232 113,980 73,968 -35.10% -23.14%
Mortgage loans 1,455,408 1,530,291 1,719,002 12.33% 18.11%
Finance lease 2,434,171 2,850,547 3,099,021 8.72% 27.31%
Allowance for loan losses (692,832) (738,700) (763,625) 3.37% 10.22%
NET TOTAL LOANS AND FINANCIAL
LEASES 16,859,567 18,365,410 21,084,601 14.81% 25.06%
---------- ---------- ---------- ------- -------
Accrued interest receivable on
loans 198,598 199,623 210,003 5.20% 5.74%
Allowance for accrued interest
losses (12,721) (9,526) (9,532) 0.06% -25.07%
NET TOTAL INTEREST ACCRUED 185,877 190,097 200,471 5.46% 7.85%
---------- ---------- ---------- ------- -------
Customers' acceptances and
derivatives 88,989 104,372 54,707 -47.58% -38.52%
Net accounts receivable 309,650 395,484 396,608 0.28% 28.08%
Net premises and equipment 525,010 645,915 649,493 0.55% 23.71%
Foreclosed assets, net 54,562 26,663 25,859 -3.02% -52.61%
Prepaid expenses and deferred
charges 60,188 34,404 50,516 46.83% -16.07%
Goodwill 62,264 45,297 53,991 19.19% -13.29%
Operating leases, net 127,500 157,761 149,800 -5.05% 17.49%
Other 391,319 648,030 725,965 12.03% 85.52%
Reappraisal of assets 396,574 346,328 370,546 6.99% -6.56%
---------- ---------- ---------- ------- -------
TOTAL ASSETS 28,569,300 30,964,963 33,487,622 8.15% 17.22%
========== ========== ========== ======= =======
LIABILITIES AND SHAREHOLDERS'
EQUITY
LIABILITIES
DEPOSITS
NON-INTEREST BEARING 2,502,570 3,229,036 3,282,769 1.66% 31.18%
Checking accounts 2,246,186 2,758,182 3,006,549 9.00% 33.85%
Other 256,384 470,854 276,220 -41.34% 7.74%
---------- ---------- ---------- ------- -------
INTEREST BEARING 14,696,705 15,114,402 17,398,496 15.11% 18.38%
Checking accounts 1,056,500 1,152,790 1,281,143 11.13% 21.26%
Time deposits 6,812,775 6,739,068 7,306,274 8.42% 7.24%
Savings deposits 6,827,430 7,222,544 8,811,079 21.99% 29.05%
---------- ---------- ---------- ------- -------
TOTAL DEPOSITS 17,199,275 18,343,438 20,681,265 12.74% 20.24%
Overnight funds 1,534,014 1,650,203 1,818,644 10.21% 18.55%
Bank acceptances outstanding 41,949 40,990 62,563 52.63% 49.14%
Interbank borrowings 1,274,645 1,810,035 1,899,892 4.96% 49.05%
Borrowings from domestic
development banks 1,809,234 2,407,828 2,439,329 1.31% 34.83%
Accounts payable 875,924 1,021,597 1,001,489 -1.97% 14.34%
Accrued interest payable 188,319 205,177 218,011 6.26% 15.77%
Other liabilities 304,678 465,855 392,553 -15.73% 28.84%
Bonds 1,992,489 1,477,542 1,382,430 -6.44% -30.62%
Accrued expenses 344,474 292,622 320,850 9.65% -6.86%
Minority interest in
consolidated subsidiaries 54,315 50,350 55,111 9.46% 1.47%
---------- ---------- ---------- ------- -------
TOTAL LIABILITIES 25,619,316 27,765,637 30,272,137 9.03% 18.16%
========== ========== ========== ======= =======
SHAREHOLDERS' EQUITY
SUBSCRIBED AND PAID IN CAPITAL 363,604 363,914 366,027 0.58% 0.67%
RETAINED EARNINGS 1,847,228 2,215,130 2,325,159 4.97% 25.87%
Appropiated 1,426,164 2,001,028 2,042,009 2.05% 43.18%
Unappropiated 421,064 214,102 283,150 32.25% -32.75%
---------- ---------- ---------- ------- -------
REAPPRAISAL AND OTHERS 624,607 569,793 580,639 1.90% -7.04%
GROSS UNREALIZED GAIN OR LOSS
ON DEBT SECURITIES 114,545 50,489 (56,340) -211.59% -149.19%
---------- ---------- ---------- ------- -------
TOTAL SHAREHOLDER'S EQUITY 2,949,984 3,199,326 3,215,485 0.51% 9.00%
========== ========== ========== ======= =======
9
(BANCOLOMBIA LOGO)
2Q06
CONSOLIDATED INCOME STATEMENT
AS OF QUARTER
--------------------- ------------------------------ GROWTH
JUN-05 2Q 05 -------------------------
(Ps Millions) PRO FORMA JUN-06 JUN-06/JUN-05 PRO FORMA 1Q 06 2Q 06 2Q 06/1Q 06 2Q 06/2Q 05
--------- --------- ------------- --------- ------- -------- ----------- -----------
INTEREST INCOME AND EXPENSES
Interest on loans 987,243 1,062,922 7.67% 502,733 519,316 543,606 4.68% 8.13%
Interest on investment
securities 378,989 (23,022) -106.07% 228,791 135,379 (158,401) -217.01% -169.23%
Overnight funds 15,643 17,635 12.73% 9,593 9,015 8,620 -4.38% -10.14%
Leasing 136,089 174,859 28.49% 69,005 84,195 90,664 7.68% 31.39%
TOTAL INTEREST INCOME 1,517,964 1,232,394 -18.81% 810,122 747,905 484,489 -35.22% -40.20%
--------- --------- ------- ------- ------- ------- -------- -------
Interest expense
Checking accounts 9,090 15,230 67.55% 4,476 7,098 8,132 14.57% 81.68%
Time deposits 230,657 218,552 -5.25% 114,599 106,016 112,536 6.15% -1.80%
Savings deposits 118,381 112,121 -5.29% 60,438 55,277 56,844 2.83% -5.95%
TOTAL INTEREST ON DEPOSITS 358,128 345,903 -3.41% 179,513 168,391 177,512 5.42% -1.11%
--------- --------- ------- ------- ------- ------- -------- -------
Interbank borrowings 20,693 55,669 169.02% 9,925 28,085 27,584 -1.78% 177.92%
Borrowings from domestic
development banks 78,523 83,183 5.93% 36,980 40,857 42,326 3.60% 14.46%
Overnight funds 40,236 47,115 17.10% 25,668 20,835 26,280 26.13% 2.38%
Bonds 80,739 59,650 -26.12% 35,530 31,593 28,057 -11.19% -21.03%
TOTAL INTEREST EXPENSE 578,319 591,520 2.28% 287,616 289,761 301,759 4.14% 4.92%
--------- --------- ------- ------- ------- ------- -------- -------
NET INTEREST INCOME 939,645 640,874 -31.80% 522,506 458,144 182,730 -60.12% -65.03%
Provision for loan and accrued
interest losses, net (77,385) (131,433) 69.84% (43,757) (64,205) (67,228) 4.71% 53.64%
Recovery of charged-off loans 31,306 32,074 2.45% 19,424 16,747 15,327 -8.48% -21.09%
Provision for foreclosed
assets and other assets (28,674) (20,132) -29.79% (18,089) (12,636) (7,496) -40.68% -58.56%
Recovery of provisions for
foreclosed assets and other
assets 24,234 61,259 152.78% 19,520 9,416 51,843 450.58% 165.59%
--------- --------- ------- ------- ------- ------- -------- -------
TOTAL NET PROVISIONS (50,519) (58,232) 15.27% (22,902) (50,678) (7,554) -85.09% -67.02%
NET INTEREST INCOME AFTER
PROVISION FOR LOANS AND
ACCRUED INTEREST LOSSES 889,126 582,642 -34.47% 499,604 407,466 175,176 -57.01% -64.94%
--------- --------- ------- ------- ------- ------- -------- -------
Commissions from banking
services and other services 35,477 69,320 95.39% 17,484 27,963 41,357 47.90% 136.54%
Electronic services and ATM
fees 54,028 42,550 -21.24% 29,842 20,725 21,825 5.31% -26.86%
Branch network services 22,806 26,151 14.67% 11,798 12,833 13,318 3.78% 12.88%
Collections and payments fees 27,043 33,844 25.15% 13,916 15,164 18,680 23.19% 34.23%
Credit card merchant fees 4,740 4,314 -8.99% 4,315 2,235 2,079 -6.98% -51.82%
Credit and debit card annual
fees 99,771 118,251 18.52% 46,665 59,248 59,003 -0.41% 26.44%
Checking fees 26,782 28,988 8.24% 13,869 14,696 14,292 -2.75% 3.05%
Warehouse services 27,524 34,012 23.57% 12,775 17,981 16,031 -10.84% 25.49%
Fiduciary activities 28,827 28,870 0.15% 14,720 15,595 13,275 -14.88% -9.82%
Brokerage fees 28,857 36,111 25.14% 14,774 23,383 12,728 -45.57% -13.85%
Check remittance 4,998 5,589 11.82% 2,572 2,852 2,737 -4.03% 6.42%
International operations 14,627 15,674 7.16% 8,005 6,836 8,838 29.29% 10.41%
FEES AND OTHER SERVICE INCOME 375,480 443,674 18.16% 190,735 219,511 224,163 2.12% 17.53%
--------- --------- ------- ------- ------- ------- -------- -------
Fees and other service
expenses (27,889) (27,220) -2.40% (14,818) (13,392) (13,828) 3.26% -6.68%
TOTAL FEES AND INCOME FROM
SERVICES, NET 347,591 416,454 19.81% 175,917 206,119 210,335 2.05% 19.56%
--------- --------- ------- ------- ------- ------- -------- -------
OTHER OPERATING INCOME
Net foreign exchange gains (61,475) 143,463 333.37% (42,994) 11,269 132,194 1073.08% 407.47%
Forward contracts in foreign
currency 105,166 (63,470) -160.35% 67,505 4,337 (67,807) -1663.45% -200.45%
Gains on sales of investments
on equity securities 3,123 43,015 1277.36% 3,123 34,121 8,894 -73.93% 184.79%
Dividend income 39,364 19,718 -49.91% 570 19,620 98 -99.50% -82.81%
Revenues from commercial
subsidiaries 48,989 21,951 -55.19% 20,205 13,245 8,706 -34.27% -56.91%
Communication, postage, rent
and others 6,423 7,938 23.59% 2,339 2,346 5,592 138.36% 139.08%
TOTAL OTHER OPERATING INCOME 141,590 172,615 21.91% 50,748 84,938 87,677 3.22% 72.77%
--------- --------- ------- ------- ------- ------- -------- -------
TOTAL INCOME 1,378,307 1,171,711 -14.99% 726,269 698,523 473,188 -32.26% -34.85%
OPERATING EXPENSES
Salaries and employee benefits 302,163 335,647 11.08% 153,441 163,778 171,869 4.94% 12.01%
Bonus plan payments 8,703 8,288 -4.77% 2,383 8,227 61 -99.26% -97.44%
Compensation 4,685 1,598 -65.89% 2,443 716 882 23.18% -63.90%
Administrative and other
expenses 392,851 398,012 1.31% 198,877 198,526 199,486 0.48% 0.31%
Deposit security, net 28,805 29,333 1.83% 15,180 15,682 13,651 -12.95% -10.07%
Donation expenses 403 135 -66.50% 295 58 77 32.76% -73.90%
Depreciation 43,183 48,034 11.23% 16,317 21,598 26,436 22.40% 62.02%
TOTAL OPERATING EXPENSES 780,793 821,047 5.16% 388,936 408,585 412,462 0.95% 6.05%
--------- --------- ------- ------- ------- ------- -------- -------
NET OPERATING INCOME 597,514 350,664 -41.31% 337,333 289,938 60,726 -79.06% -82.00%
Merger expenses 18,422 12,478 -32.26% 13,299 4,664 7,814 67.54% -41.24%
Goodwill amortization (1) 11,324 11,987 5.85% 5,662 5,662 6,325 11.71% 11.71%
NON-OPERATING INCOME (EXPENSE)
Other income 37,991 141,745 273.10% 24,077 20,461 121,284 492.76% 403.73%
Minority interest (3,088) (4,306) 39.44% (1,267) (2,761) (1,545) -44.04% 21.94%
Other expense (40,335) (79,655) 97.48% (26,908) (15,431) (64,224) 316.20% 138.68%
TOTAL NON-OPERATING INCOME (5,432) 57,784 1163.77% (4,098) 2,269 55,515 2346.67% 1454.69%
INCOME BEFORE INCOME TAXES 562,336 383,983 -31.72% 314,274 281,881 102,102 -63.78% -67.51%
Income tax expense (141,272) (100,833) -28.62% (70,752) (67,779) (33,054) -51.23% -53.28%
--------- --------- ------- ------- ------- ------- -------- -------
NET INCOME 421,064 283,150 -32.75% 243,522 214,102 69,048 -67.75% -71.65%
========= ========= ======= ======= ======= ======= ======== =======
(1) Includes Banco de Colombia and Comercia S.A. amortization.
10