UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 6-K

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

For the month of March, 2008.

Comission File Number 001-32535

Bancolombia S.A.

(Translation of registrant’s name into English)

Calle 50 No. 51-66
Medellín, Colombia
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F þ		Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(2): o

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o		No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                    .

 

 

CONSOLIDATED FINANCIAL RESULTS
FOR THE QUARTER ENDED DECEMBER 31, 2007

March 10, 2008. Medellín, Colombia — Today, BANCOLOMBIA S.A. (“BANCOLOMBIA” or the “Bank”) (NYSE: CIB) announced its financial results for the fourth quarter of fiscal year 2007, ended December 31, 2007.¹

CONSOLIDATED BALANCE SHEET		Quarter												Growth
AND INCOME STATEMENT		Pro forma
(Ps millions)		4Q 06				3Q 07				4Q 07				4Q 07 / 3Q 07				4Q 07 / 4Q 06
ASSETS
Loans and financial leases, net			29,207,818				34,188,333				36,245,473				6.02	%			24.10	%
Investment securities, net			7,157,767				5,331,636				5,774,251				8.30	%			-19.33	%
Other assets			6,896,391				9,163,991				10,131,925				10.56	%			46.92	%
Total assets			43,261,976				48,683,960				52,151,649				7.12	%			20.55	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits			28,526,183				30,641,803				34,374,150				12.18	%			20.50	%
Non-interest bearing			5,259,098				4,647,520				5,804,724				24.90	%			10.37	%
Interest bearing			23,267,085				25,994,283				28,569,426				9.91	%			22.79	%
Other liabilities			10,421,112				13,274,738				12,578,229				-5.25	%			20.70	%
Total liabilities			38,947,295				43,916,541				46,952,379				6.91	%			20.55	%
Shareholders’ equity			4,314,681				4,767,419				5,199,270				9.06	%			20.50	%
Total liabilities and shareholders’ equity			43,261,976				48,683,960				52,151,649				7.12	%			20.55	%
Interest income			1,052,012				1,242,684				1,375,701				10.70	%			30.77	%
Interest expense			403,065				526,607				588,349				11.72	%			45.97	%
Net interest income			648,947				716,077				787,352				9.95	%			21.33	%
Net provisions			(20,724	)			(192,709	)			(210,719	)			9.35	%			916.79	%
Fees and income from service, net			290,987				283,549				348,778				23.00	%			19.86	%
Other operating income			74,090				95,682				132,207				38.17	%			78.44	%
Operating expense			(640,894	)			(550,826	)			(601,721	)			9.24	%			-6.11	%
Non-operating income, net			(4,147	)			13,967				3,821				-72.64	%			192.14	%
Income tax expense			(49,432	)			(49,007	)			(137,222	)			180.00	%			177.60	%
Net income			298,827				316,733				322,496				1.82	%			7.92	%

¹ This report corresponds to the consolidated financial statements of BANCOLOMBIA and its affiliates of which it owns, directly or indirectly more than 50% of the voting capital stock. These financial statements have been prepared in accordance with generally accepted accounting principles in Colombia and the regulations of Superintendency of Finance in Colombia, collectively COL GAAP. BANCOLOMBIA maintains accounting records in Colombian pesos, referred to herein as “Ps.” There have been no changes to the Bank’s principal accounting policies in the 4Q2007. The statements of income for the 4Q2007 are not necessarily indicative of the results for any other future interim period. For more information, please refer to the Company’s filings with the Securities and Exchange Commission, which are available on the Commission’s website at www.sec.gov.

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

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

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

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

Representative Market Rate: December 31, 2007 Ps. 2,014.76 = US$ 1
Average Representative Market Rate December 2007 Ps. 2,078.35 = US$ 1

1. HIGHLIGHTS:

•

For the fourth quarter of 2007 net income amounted to Ps. 322.5 billion. Net income for the year ended December 31, 2007 totaled Ps. 1,086.9 billion, increasing 31.0% as compared to the pro forma2 Ps. 829.5 billion for the year ended December 31, 2006.

•

As of December 31, 2007, BANCOLOMBIA net loans totaled Ps. 36,245 billion, increasing 6.0% as compared to the Ps. 34,188 billion in the previous quarter. On a year-to-year basis, this represents an increase of 24.1% as compared to the pro forma Ps. 29,208 billion as of December 31, 2006.

•

Return on average equity (ROAE) was 24.41% for the year 2007.

•

For the year ended December 31, 2007, net interest income amounted to Ps. 2,808.3 billion, increasing 32.9% as compared to the pro forma figures for the year ended December 31, 2006.

•

Net fees and income from services for the quarter ended December 31, 2007, totaled Ps. 348.8 billion, which represents an increase of 19.9% as compared to the pro forma figures for the last quarter of 2006.

•

Total operating expenses for the year ended December 31, 2007 amounted to Ps. 2,201.3 billion, increasing 6.1% as compared to the 2,074.6 billion pro forma figures for the year ended December 31, 2006. Efficiency, measured as the ratio between operating expenses and net operating income, reached 53.0% for the year ended December 31, 2007.

•

Provisions for loan and accrued interest losses for the year ended December 31, 2007 amounted to Ps. 708 billion increasing 117.9% when compared to the same period of 2006.

•

BANCOLOMBIA’s ratio of past due loans to total loans as of December 31, 2007 was 2.9%, and the ratio of allowances to past due loans was 134.9%.

KEY FINANCIAL HIGHLIGHTS		Quarter												As of
		Pro forma												Pro forma
		4Q 06				3Q 07				4Q 07				Dec-06				Dec-07
Net Income (Ps millions)			298,827				316,733				322,496				829,488				1,086,923
Basic and Diluted net income per ADS			0.678				0.795				0.813				1.881				2.739
Return on average total assets (1)			2.80	%			2.70	%			2.57	%			1.92	%			2.30	%
Return on average shareholders’ equity (2)			29.26	%			28.81	%			25.99	%			19.22	%			24.41	%
P/BV ADS (3)			3.18				2.90				2.61
P/BV Local (4) (5)			3.17				2.71				2.56
P/E (6)			11.47				10.45				10.39
ADR price			31.13				34.65				34.20
Weighted average of Preferred and Common Shares outstanding			787,827,003				787,827,003				787,827,003

² This report contains pro forma figures for the fourth quarter of 2006 as if the acquisition of Banagricola had taken place on June 30, 2006. All references to numbers for periods prior to third quarter of 2007 were derived from such pro forma consolidated financial statements and are used herein for the purpose of comparison. Some assumptions were needed in order to complete the pro forma figures, the purchase transaction was simulated applying the same multiples, used on the acquisition, to the numbers that BANAGRICOLA had at that time and an issuance of subordinated bonds and preferred shares were simulated keeping a similar participation on the bank’s funding as they did in June 30 2007.

2. CONSOLIDATED BALANCE SHEET

2.1.		Assets

BANCOLOMBIA’s total assets amounted to Ps. 52,152 billion as of December 31, 2007, an increase of 7.1% as compared to Ps. 48,684 billion as of September 30, 2007 and of 20.5% as compared to the pro forma Ps. 43,262 billion as of December 31, 2006.

2.1.1.		Loan Portfolio

Net loans and financial leases represented 69.5% of assets as of December 31, 2007, amounting to Ps. 36,245 billion, a 6.0% increase as compared to the previous quarter and 24.1% as compared to the pro forma figures for the fourth quarter of 2006.

LOAN PORTFOLIO		As of												Growth
(Ps millions)		31-Dec-06				30-Sep-07				31-Dec-07				Dec-07/Sep-07				Dec-07/Dec-06
		Pro forma
CORPORATE
Working capital loans			14,163,885				15,719,266				16,099,499				2.42	%			13.67	%
Loans funded by domestic development banks			419,841				852,098				882,715				3.59	%			110.25	%
Trade Financing			1,045,662				1,002,428				1,159,546				15.67	%			10.89	%
Overdrafts			83,028				140,692				59,146				-57.96	%			-28.76	%
Credit Cards			55,260				156,576				43,159				-72.44	%			-21.90	%
TOTAL CORPORATE			15,767,676				17,871,060				18,244,065				2.09	%			15.71	%
RETAIL AND SMEs
Working capital loans			2,348,732				2,874,562				3,729,344				29.74	%			58.78	%
Personal loans			3,560,140				3,554,436				3,778,558				6.31	%			6.14	%
Loans funded by domestic development banks			386,537				553,915				719,211				29.84	%			86.07	%
Credit Cards			951,954				1,701,169				2,020,611				18.78	%			112.26	%
Overdrafts			140,945				234,653				218,006				-7.09	%			54.67	%
Automobile loans			971,078				1,214,440				1,312,396				8.07	%			35.15	%
Trade Financing			75,537				90,820				97,978				7.88	%			29.71	%
TOTAL RETAIL AND SMEs			8,434,923				10,223,995				11,876,104				16.16	%			40.80	%
MORTGAGE			2,449,679				3,017,151				2,883,628				-4.43	%			17.71	%
FINANCIAL LEASES			3,554,616				4,332,769				4,698,827				8.45	%			32.19	%
Total loans and financial leases			30,206,894				35,444,975				37,702,624				6.37	%			24.81	%
Allowance for loan losses and financial leases			(999,076	)			(1,256,642	)			(1,457,151	)			15.96	%			45.85	%
Total loans and financial leases, net			29,207,818				34,188,333				36,245,473				6.02	%			24.10	%

Corporate loans amounted to Ps. 18,244 billion as of December 31, 2007, increasing 2.1% as compared to the previous quarter. This represents an increase of 15.7% as compared to pro forma Ps. 15,768 billion at December 31, 2006. Corporate loans represent 48.4% of BANCOLOMBIA’s loan portfolio.

Retail and small and medium-sized enterprise (“SME”) loans amounted to Ps. 11,876 billion as of December 31, 2007. They increased 16.2% as compared to the previous quarter and 40.8% over the year, driven by the increase on Colombian household demand and its direct effect on credit appetite. Retail and SME’s loans represent 31.5% of the loan portfolio.

Financial leases amounted to Ps. 4,699 billion, increasing 8.4% as compared to the previous quarter and 32.2% over the year. Financial leases represent 12.5% of the loan portfolio.

Mortgage loans amounted Ps. 2,884 billion, representing 7.6% of the loan portfolio. In 2007 BANCOLOMBIA securitized approximately Ps. 729 billion of its mortgage loans, of which Ps. 439 billion were securitized on the fourth quarter. After taking into account the securitizations presented on the quarter and the year, mortgage loans origination increased 5.4% as compared to the previous quarter and 25.3% over the year.

2.1.2.		Investment Portfolio

As of December 31, 2007, BANCOLOMBIA’S net investment securities amounted to Ps. 5,774 billion, representing an increase of 8.3% when compared to September 30, 2007, and a decrease of 19.3% when compared to the pro forma figures as of December 31, 2006.

As of December 31, 2007, investments in debt securities represented 96.9% of BANCOLOMBIA’s net investment securities, which amounted to Ps. 5,596 billion (10.7% of total assets) at the end of the fourth quarter. This represents an increase of 8.2% when compared to September 30, 2007, when such investments amounted to Ps. 5,174 billion (10.6% of total assets), and a decrease of 20.1% as compared to the pro forma figures as of December 31, 2006, when such investments amounted to Ps. 7,004 billion (16.2% of total assets). The quarter over quarter change was mainly due to the increase of 29.3% in Colombian mortgage backed securities “TIPS” as a result of the repurchase of a portion of the mortgages securitized by the Bank on the same period. On a year over year basis, debt investments decreased as a continuation of the asset reallocation that began during 2006 driven by the loan growth dynamic and the decreasing bond prices environment.

TIPS is the name given to the mortgage backed securities in Colombia, securities issued by Titularizadora Colombiana S.A., entity that buys and secures mortgage loans in Colombia. These securities have a tax benefit in Colombia as their income is tax free, benefit that has contributed to the development of a market for this kind of instruments. It is important to highlight that a vast majority of the TIPS BANCOLOMBIA buys are backed by mortgages originated by the Bank according to its credit policies and standards.

Debt securities portfolio breakdown

		Government				Government								Corporate
Debt Securities		(Colombia)				(Others)				MBS (TIPS)				(Others)				Total
Trading			20	%			0	%			2	%			12	%			34	%
Available for sale			13	%			4	%			12	%			6	%			35	%
Held to Maturity			10	%			11	%			7	%			4	%			31	%
Total			42	%			15	%			21	%			22	%			100	%

2.1.3.		Asset Quality

As of December 31, 2007, the Bank’s past due loans accounted for 2.9% of total loans, increasing from the 2.8% posted as of September 30, 2007. The increase is due to higher interest rates in Colombia, BANCOLOMBIA’s largest market, and the higher participation retail and SME’s segment has reached on the Bank’s loan book. Nonetheless, the level of the coverage measured by the ratio of allowances to past due loans at the end of the quarter increased reaching 134.9%, which is above the average of this measure for the last 3 years.

The percentage of loans classified as C, D and E increased in the fourth quarter of 2007, representing 3.1% of total loans compared to 2.6% the previous quarter, while the ratio of allowances to loans classified as C, D and E at the end of the fourth quarter of 2007 was 127.4%.

LOANS AND FINANCIAL LEASES CLASSIFICATION		As of 31-Dec-06								As of 30-Sep-07								As of 31-Dec-07
(Ps millions)		Pro forma
¨A¨ Normal			28,598,500				94.7	%			33,732,877				95.1	%			35,397,502				93.9	%
¨B¨ Subnormal			842,347				2.8	%			776,157				2.2	%			1,135,023				3.0	%
¨C¨ Deficient			269,922				0.9	%			248,459				0.7	%			300,085				0.8	%
¨D¨ Doubtful recovery			281,398				0.9	%			456,216				1.3	%			604,034				1.6	%
¨E¨ Unrecoverable			214,727				0.7	%			231,266				0.7	%			265,980				0.7	%
Total			30,206,894				100	%			35,444,975				100	%			37,702,624				100	%
Loans and financial leases classified as C, D and E as a percentage of total loans and financial leases		2.5%								2.6%								3.1%

ASSET QUALITY		As of												Growth
( Ps millions)		Pro forma
		31-Dec-06				30-Sep-07				31-Dec-07				4Q 07 / 3Q 07				4Q 07 / 4Q 06
Total performing past due loans (1)			425,633				435,868				438,566				0.62	%			3.04	%
Total non-performing past due loans			334,489				544,985				666,367				22.27	%			99.22	%
Total past due loans			760,122				980,853				1,104,933				12.65	%			45.36	%
Allowance for loans and accrued interest losses			1,013,416				1,286,330				1,490,454				15.87	%			47.07	%
Past due loans to total loans			2.52	%			2.77	%			2.93	%
Non-performing loans as a percentage of total loans			1.11	%			1.54	%			1.77	%
“C”, “D” and “E” loans as a percentage of total loans			2.54	%			2.64	%			3.10	%
Allowances to past due loans (2)			133.32	%			131.14	%			134.89	%
Allowance for loan and accrued interest losses as a percentage of “C”, “D” and “E” loans (2)			132.29	%			137.44	%			127.38	%
Allowance for loan and accrued interest losses as a percentage of non-performing loans (2)			302.97	%			236.03	%			223.67	%
Allowance for loan and accrued interest losses as a percentage of total loans			3.35	%			3.63	%			3.95	%
Percentage of performing loans to total loans			98.89	%			98.46	%			98.23	%

2.2.		Liabilities

Total deposits increased 12.2% as compared to the third quarter of 2007 and 20.5% over the year ended December 31, 2007, amounting to Ps. 34,374 billion as of December 31, 2007. Non-interest bearing deposits increased 24.9% over the third quarter of 2007 as part of the seasonal effect caused by the higher activity close to the end of the year. Interest bearing deposits increased 9.9% over the third quarter of 2007 and 22.8% as compared to the pro forma figures for the same period in 2006.

The composition of deposits changed throughout the year, specifically, time deposits increased representing 41.6% of the total, compared to 35.2% a year before. Saving deposits represented 36.9% of the deposits compared to a participation of 41.1% in 2006. These changes are explained to a large extent by the marginal reserve requirements imposed by the Colombian authorities in the first half of 2007, imposing higher reserves required for checking accounts and savings accounts than for time deposits, changing the preference among banks in marketing this kind of deposit.

		Dec-06				Participation				Sep-07				Participation				Dec-07				Participation
Checking accounts			6,289,241				22.0	%			5,472,186				17.9	%			6,868,275				20.0	%
Time deposits			10,029,281				35.2	%			12,952,902				42.3	%			14,304,727				41.6	%
Savings deposits			11,723,261				41.1	%			11,737,909				38.3	%			12,697,288				36.9	%
Other			484,400				1.7	%			478,806				1.6	%			503,860				1.5	%
Total Deposits			28,526,183				100	%			30,641,803				100	%			34,374,150				100%

2.3.		Shareholders’ Equity

BANCOLOMBIA’s shareholders’ equity amounted to Ps. 5,199 billion at the end of the fourth quarter of 2007, which represents an increase of 9.0% as compared to the third quarter of 2006 and 20.5% as compared to the pro forma figures for the fourth quarter of 2006. The increase is explained by the financial result of the Bank and the stock issuance occurred in July 2007 (Ps. 927.6 billion).

At the end of the fourth quarter of 2007, the Bank’s consolidated ratio of technical capital to risk-weighted assets was 12.67%, a slight decrease as compared to the 13.28% from the previous quarter. The decrease is explained by the asset growth occurring in the fourth quarter of 2007.

TECHNICAL CAPITAL RISK WEIGHTED ASSETS
Consolidated (Ps millions)		Pro forma
		Dec-06				Sep-07				Dec-07
Basic capital (Tier I)			3,780,135				4,526,042				4,729,101
Additional capital (Tier II)			491,452				1,124,654				1,179,216
Technical capital (1)			4,271,587				5,650,696				5,908,317
Risk weighted assets included market risk			38,430,728				42,549,517				46,628,036
CAPITAL ADEQUACY (2)			11.12	%			13.28	%			12.67	%

3. INCOME STATEMENT

BANCOLOMBIA’s net income amounted to Ps. 322.5 billion for the fourth quarter of 2007 and Ps. 1,087 billion for the year ended December 31, 2007, a 31.0% increase as compared to Ps. 829.5 billion pro forma figure for the year ended December 31, 2006,.

3.1.		Net Interest Income

Interest on loans amounted to Ps. 1,072 billion in the fourth quarter of 2007, increasing 10.3% compared to the third quarter of 2007 On a year over year basis, this represents an increase of 37.9% as compared to the Ps. 776,883 million at December 31, 2006. On the other hand, interests in investment securities reached Ps. 105,916 million for the fourth quarter of 2007, increasing 13.9% as compared to the previous quarter and decreasing 26.0% as compared to the fourth quarter of 2006, decreasing mostly because of the smaller size of the debt securities portfolio.

3.2.		Provisions

For the year ended December 31, 2007, provisions for loan and interest losses amounted to Ps. 708 billion, increasing 117.9% as compared to the year ended December 31, 2006. During the fourth quarter of 2007, provisions for loans and interest losses amounted to Ps. 258 billion, increasing 27.0% as compared to the third quarter of 2007.

Recoveries of provisions for foreclosed assets decreased 9.1% in the previous year from Ps. 90 billion.

Total net provisions for the year ended December 31, 2007 amounted to Ps. 597 billion, increasing 158.5% as compared to the pro forma figure for the year ended December 31, 2006. During the fourth quarter of 2007, Total net provisions amounted to Ps. 211 billion, increasing 9.3% as compared to the previous quarter.

3.2.1. Source of provisions charges variation

During 2007, the Bank made the necessary adjustments to fulfill the requirements established by Colombia’s Superintendency of Finance (the “SFC”) in terms of provision charges, which included:

•

The application of a new methodology when calculating provisions for commercial loans based on a reference model developed by the SFC.

•

Changes to the applicable allowance percentage formula for consumer loans, which increased these percentages for the loans classified as “A” and “B”.

•

The adjustment of the allowances of BANAGRICOLA, a Salvadorian subsidiary, to Colombia’s regulatory framework, causing additional non-recurrent provisions.

•

Changes in the methodology used to classify restructured commercial loans.

BANCOLOMBIA notes that 40% of the Bank’s current allowances are made upon loans classified as “A” which are performing loans. Additionally, the adjustment of BANAGRICOLA’s allowances generated non-recurrent charges that account for 10.8% of the net provisions for the year 2007 and represent 17.6% of the variation between the years 2007 and the pro forma figures for 2006.

3.3.		Fees and Income from Services

Net fees and income from services amounted to Ps. 1,170 billion during 2007, increasing 7.8% as compared to the pro forma figures as of December 2006, affected by the sale of Almacenar S.A., a former subsidiary, as the Bank did not have any income from warehouse services in 2007; services that represented 6.2% of the total fees and other service income for the year 2006.

In the fourth quarter of 2007, net fees and income from services amounted to Ps. 348,778 million, increasing 23.0% as compared to the previous quarter and 19.9% as compared to Ps. 290,987 million for the fourth quarter of 2006. The increase was mainly driven by higher banking services’ transactions along the fourth quarter of 2007.

BANCOLOMBIA’s accumulated unconsolidated credit card billing increased 35.3% during 2007, resulting in a 23.1% market share of the Colombian credit card business. In addition, the Bank’s number of outstanding credit cards increased 30.19%, resulting in a 16.6% market share at the end of 2007.

ACCUMULATED CREDIT CARD BILLING										%				2007
(Millions of pesos as of December 31, 2007)		December-06				December-07				Growth				Market Share
Bancolombia VISA			1,062,000				1,480,725				39.43	%			7.70	%
Bancolombia Mastercard			1,565,211				1,945,680				24.31	%			10.12	%
Bancolombia American Express			649,902				1,007,659				55.05	%			5.24	%
Total Bancolombia			3,277,113				4,434,064				35.30	%			23.07	%
Colombian Credit Card Market			15,924,066				19,218,507				20.69	%

Source: Credibanco y Redeban multicolor

CREDIT CARD MARKET SHARE										%				2007
(Outstanding credit cards as of December 31, 2007)		December-06				December-07				Growth				Market Share
Bancolombia VISA			234,066				304,612				30.14	%			5.80	%
Bancolombia Mastercard			288,068				336,583				16.84	%			6.41	%
Bancolombia American Express			149,388				232,635				55.73	%			4.43	%
Total Bancolombia			671,522				873,830				30.13	%			16.64	%
Colombian Credit Card Market			4,538,203				5,251,549				15.72	%

Source: Credibanco y Redeban multicolor

3.4.		Other Operating Income

Total other operating income amounted to Ps. 307.5 billion for the year ended December 31, 2007, increasing 16.5% as compared to the pro forma figures of 2006. During the fourth quarter of 2007, total other operating income amounted to Ps. 132.2 billion which represents an increase of 38.2% when compared to the third quarter’s figures.

Other operating income was driven by foreign currency forward contracts which had a dynamic year, especially in the Colombian Peso exchange market in which BANCOLOMBIA is a leader given its broad customer base and its contract size capacity.

Revenues from commercial subsidiaries presented a substantial increase as well, driven by the revenue generated by some minor acquisitions undertaken by LEASING BANCOLOMBIA S.A. on 2007 and by the organic growth presented on the rest of the Bank’s commercial subsidiaries.

3.5.		Operating expenses

Operating expenses increased 6.1% in the year ended December 31, 2007 as compared to the previous year. During the fourth quarter of 2007, operating expenses amounted to Ps. 582,026 million, increasing 9.5% over the third quarter of 2007 but decreasing 5.4% as compared to the pro forma figures for the fourth quarter of 2006.

Personnel expenses (the sum of salaries and employee benefits, bonus plan payment and compensation) implemented for the year 2007 increased 10.7% as compared to the pro forma for the year ended December 31, 2006. Administrative and other expenses increased 5.6% compared to 2006 on the same period, a lower rate of increase compared to the 11.2% increase in the previous year. This decline is the result of a stricter policy concerning expenses implemented in 2007.

BANCOLOMBIA’s ratio of operating expenses to net operating income improved for the year 2007 reaching 53.0%, a lower ratio than the 62.5% from 2006 pro forma figures. On a quarterly basis, the cost to income efficiency ratio reached 47.4%.

The Bank’s efficiency, measured as operating expenses over average total assets, was 4.8% for the year 2007, a decline as compared to the 5.06% from the pro forma figures for 2006.

PRINCIPAL RATIOS		Quarter												As of
		4Q 06(1)				3Q 07				4Q 07				Dec-06(2)				Dec-07(3)
PROFITABILITY		Pro forma												Pro forma
Net interest margin (4)			6.90	%			6.99	%			7.17	%			5.54	%			6.80	%
Return on average total assets (5)			2.80	%			2.70	%			2.57	%			1.92	%			2.30	%
Return on average shareholders’ equity (6)			29.26	%			28.81	%			25.99	%			19.22	%			24.41	%
EFFICIENCY
Operating expenses to net operating income			63.20	%			50.29	%			47.44	%			62.47	%			53.01	%
Operating expenses to average total assets (7)			5.99	%			4.70	%			4.80	%			5.00	%			4.82	%
CAPITAL ADEQUACY
Shareholders’ equity to total assets			9.97	%			9.79	%			9.14	%
Technical capital to risk weighted assets			11.12	%			13.28	%			12.67	%

BALANCE SHEET
														Last
(Ps. Million)		Dec-06				Sep-07				Dec-07				Quarter				Annual
ASSETS
Cash and due from banks			2,421,256				2,846,131				3,618,619				27.14	%			49.45	%
Overnight funds sold			457,614				1,691,508				1,609,768				-4.83	%			251.77	%
Total cash and equivalents			2,878,870				4,537,639				5,228,387				15.22	%			81.61	%
Debt securities			7,003,946				5,173,644				5,596,051				8.16	%			-20.10	%
Trading			2,605,851				1,745,887				1,916,012				9.74	%			-26.47	%
Available for Sale			1,987,901				1,549,168				1,954,593				26.17	%			-1.68	%
Held to Maturity			2,410,194				1,878,589				1,725,446				-8.15	%			-28.41	%
Equity securities			231,577				235,401				253,747				7.79	%			9.57	%
Trading			61,640				77,272				93,125				20.52	%			51.08	%
Available for Sale			169,937				158,129				160,622				1.58	%			-5.48	%
Market value allowance			-77,756				-77,409				-75,547				-2.41	%			-2.84	%
Net investment securities			7,157,767				5,331,636				5,774,251				8.30	%			-19.33	%
Commercial loans			19,037,058				21,789,482				23,397,058				7.38	%			22.90	%
Consumer loans			5,052,289				6,189,229				6,593,211				6.53	%			30.50	%
Small business loans			113,252				116,344				129,900				11.65	%			14.70	%
Mortgage loans			2,449,679				3,017,151				2,883,628				-4.43	%			17.71	%
Finance lease			3,554,616				4,332,769				4,698,827				8.45	%			32.19	%
Allowance for loan losses			-999,076				-1,256,642				-1,457,151				15.96	%			45.85	%
Net total loans and financial leases			29,207,818				34,188,333				36,245,473				6.02	%			24.10	%
Accrued interest receivable on loans			293,166				400,825				431,863				7.74	%			47.31	%
Allowance for accrued interest losses			-14,340				-29,688				-33,303				12.18	%			132.24	%
Net total interest accrued			278,826				371,137				398,560				7.39	%			42.94	%
Customers’ acceptances and derivatives			169,514				178,461				196,001				9.83	%			15.63	%
Net accounts receivable			635,580				676,696				716,106				5.82	%			12.67	%
Net premises and equipment			883,327				806,688				855,818				6.09	%			-3.11	%
Foreclosed assets, net			43,400				27,893				32,294				15.78	%			-25.59	%
Prepaid expenses and deferred charges			77,063				133,953				137,901				2.95	%			78.95	%
Goodwill			731,019				917,025				977,095				6.55	%			33.66	%
Operating leases, net			168,268				414,959				488,333				17.68	%			190.21	%
Other			682,160				739,947				580,642				-21.53	%			-14.88	%
Reappraisal of assets			348,364				359,593				520,788				44.83	%			49.50	%
Total assets			43,261,976				48,683,960				52,151,649				7.12	%			20.55	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
DEPOSITS
Non-interest bearing			5,259,098				4,647,520				5,804,724				24.90	%			10.37	%
Checking accounts			4,774,698				4,168,714				5,300,864				27.16	%			11.02	%
Other			484,400				478,806				503,860				5.23	%			4.02	%
Interest bearing			23,267,085				25,994,283				28,569,426				9.91	%			22.79	%
Checking accounts			1,514,543				1,303,472				1,567,411				20.25	%			3.49	%
Time deposits			10,029,281				12,952,902				14,304,727				10.44	%			42.63	%
Savings deposits			11,723,261				11,737,909				12,697,288				8.17	%			8.31	%
Total deposits			28,526,183				30,641,803				34,374,150				12.18	%			20.50	%
Overnight funds			1,007,045				2,127,637				2,005,490				-5.74	%			99.15	%
Bank acceptances outstanding			64,030				52,378				55,208				5.40	%			-13.78	%
Interbank borrowings			2,137,051				1,170,339				1,506,611				28.73	%			-29.50	%
Borrowings from domestic development banks			2,559,492				3,270,537				3,344,635				2.27	%			30.68	%
Accounts payable			1,018,754				2,191,160				1,714,418				-21.76	%			68.29	%
Accrued interest payable			225,169				269,085				286,627				6.52	%			27.29	%
Other liabilities			485,501				479,070				503,433				5.09	%			3.69	%
Bonds			2,500,101				2,937,268				2,850,730				-2.95	%			14.02	%
Accrued expenses			191,017				606,235				218,860				-63.90	%			14.58	%
Minority interest in consolidated subsidiaries			232,952				171,029				92,217				-46.08	%			-60.41	%
Total liabilities			38,947,295				43,916,541				46,952,379				6.91	%			20.55	%
SHAREHOLDERS’ EQUITY
Subscribed and paid in capital			387,093				393,914				393,914				0.00	%			1.76	%
Retained earnings			3,339,644				3,789,802				4,082,419				7.72	%			22.24	%
Appropiated			2,510,156				3,025,375				2,995,496				-0.99	%			19.34	%
Unappropiated			829,488				764,427				1,086,923				42.19	%			31.04	%
Reappraisal and others			577,284				617,514				752,589				21.87	%			30.37	%
Gross unrealized gain or loss on debt securities			10,660				-33,811				-29,652				-12.30	%			-378.16	%
Total shareholder’s equity			4,314,681				4,767,419				5,199,270				9.06	%			20.50	%

										Pro forma
INCOME STATEMENT		Pro forma								Dec-06/																4Q 07/				4Q 07/
(Ps Millions)		Dec-06				Dec-07				Dec-07				4Q 06				3Q 07				4Q 07				3Q 07				4Q 06
Interest income and expenses
Interest on loans			2,806,206				3,707,751				32.13	%			776,883				971,352				1,071,515				10.31	%			37.92	%
Interest on investment securities			337,533				416,644				23.44	%			143,117				92,996				105,916				13.89	%			-25.99	%
Overnight funds			72,265				115,324				59.58	%			21,488				29,540				29,316				-0.76	%			36.43	%
Leasing			384,194				570,689				48.54	%			110,524				148,796				168,954				13.55	%			52.87	%
Total interest income			3,600,198				4,810,408				33.62	%			1,052,012				1,242,684				1,375,701				10.70	%			30.77	%
Interest expense
Checking accounts			39,548				39,076				-1.19	%			10,375				9,126				10,595				16.10	%			2.12	%
Time deposits			561,761				816,688				45.38	%			153,643				219,594				250,289				13.98	%			62.90	%
Savings deposits			276,887				461,437				66.65	%			82,871				119,021				129,902				9.14	%			56.75	%
Total interest on deposits			878,196				1,317,201				49.99	%			246,889				347,741				390,786				12.38	%			58.28	%
Interbank borrowings			160,818				109,843				-31.70	%			33,108				20,966				18,775				-10.45	%			-43.29	%
Borrowings from domestic development banks			188,217				274,484				45.83	%			52,247				73,029				81,678				11.84	%			56.33	%
Overnight funds			100,876				131,127				29.99	%			25,910				39,166				38,557				-1.55	%			48.81	%
Bonds			158,617				169,435				6.82	%			44,911				45,705				58,553				28.11	%			30.38	%
Total interest expense			1,486,724				2,002,090				34.66	%			403,065				526,607				588,349				11.72	%			45.97	%
Net interest income			2,113,474				2,808,318				32.88	%			648,947				716,077				787,352				9.95	%			21.33	%
Provision for loan and accrued interest losses, net			(324,876	)			(707,865	)			117.89	%			(46,406	)			(203,047	)			(257,857	)			26.99	%			455.65	%
Recovery of charged-off loans			85,785				89,997				4.91	%			25,155				24,222				24,525				1.25	%			-2.50	%
Provision for foreclosed assets and other assets			(81,444	)			(60,531	)			-25.68	%			(23,694	)			(22,963	)			(6,810	)			-70.34	%			-71.26	%
Recovery of provisions for foreclosed assets and other assets			89,535				81,364				-9.13	%			24,221				9,079				29,423				224.08	%			21.48	%
Total net provisions			(231,000	)			(597,035	)			158.46	%			(20,724	)			(192,709	)			(210,719	)			9.35	%			916.79	%
Net interest income after provision for loans and accrued interest losses			1,882,474				2,211,283				17.47	%			628,223				523,368				576,633				10.18	%			-8.21	%
Commissions from banking services and other services			225,463				324,352				43.86	%			62,441				75,196				124,405				65.44	%			99.24	%
Electronic services and ATM fees			91,971				80,711				-12.24	%			21,964				20,955				22,630				7.99	%			3.03	%
Branch network services			73,961				104,601				41.43	%			23,942				25,869				28,006				8.26	%			16.97	%
Collections and payments fees			93,336				130,421				39.73	%			27,800				32,937				36,925				12.11	%			32.82	%
Credit card merchant fees			16,909				39,191				131.78	%			7,385				8,800				11,085				25.97	%			50.10	%
Credit and debit card annual fees			240,676				258,937				7.59	%			59,080				66,000				73,192				10.90	%			23.89	%
Checking fees			60,923				67,438				10.69	%			15,942				16,546				17,792				7.53	%			11.60	%
Warehouse services (2)			72,494				—				*				19,763				—				—				0.00	%			*
Fiduciary activities			62,901				69,200				10.01	%			18,598				17,161				19,244				12.14	%			3.47	%
Pension plan administration			89,135				82,453				-7.50	%			22,634				20,912				20,274				-3.05	%			-10.42	%
Brokerage fees			74,378				62,493				-15.98	%			21,215				12,539				20,005				59.54	%			-5.70	%
Check remittance			23,395				22,762				-2.71	%			6,112				5,672				5,964				5.15	%			-2.42	%
International operations			37,173				43,643				17.41	%			9,936				10,357				12,454				20.25	%			25.34	%
Fees and other service income			1,162,715				1,286,202				10.62	%			316,812				312,944				391,976				25.25	%			23.73	%
Fees and other service expenses			(77,438	)			(116,453	)			50.38	%			(25,825	)			(29,395	)			(43,198	)			46.96	%			67.27	%
Total fees and income from services, net			1,085,277				1,169,749				7.78	%			290,987				283,549				348,778				23.00	%			19.86	%
Other operating income
Net foreign exchange gains			49,644				27,584				-44.44	%			(56,983	)			100,996				13,313				-86.82	%			123.36	%
Forward contracts in foreign currency			48,358				141,930				193.50	%			74,810				(40,634	)			72,224				277.74	%			-3.46	%
Gains on sales of investments on equity securities			75,697				(15,034	)			-119.86	%			26,749				(101	)			190				288.12	%			-99.29	%
Gains on sale of mortgage loan			14,371				7,304				-49.18	%			14,371				857				6,447				652.28	%			-55.14	%
Dividend income			21,201				18,968				-10.53	%			(430	)			2,460				362				-85.28	%			184.19	%
Revenues from commercial subsidiaries			40,323				101,148				150.84	%			9,100				22,854				34,779				52.18	%			282.19	%
Insurance income			(2,754	)			8,013				390.96	%			1,430				(676	)			6,520				1064.50	%			355.94	%
Communication, postage, rent and others			17,000				17,572				3.36	%			5,043				9,926				(1,628	)			-116.40	%			-132.28	%
Total other operating income			263,840				307,485				16.54	%			74,090				95,682				132,207				38.17	%			78.44	%
Total income			3,231,591				3,688,517				14.14	%			993,300				902,599				1,057,618				17.17	%			6.48	%
Operating expenses
Salaries and employee benefits			785,593				835,150				6.31	%			210,247				205,180				217,124				5.82	%			3.27	%
Bonus plan payments			58,705				84,226				43.47	%			24,241				17,545				31,917				81.92	%			31.67	%
Compensation			7,731				23,463				203.49	%			4,337				6,826				6,224				-8.82	%			43.51	%
Administrative and other expenses			1,013,960				1,071,139				5.64	%			302,361				259,065				271,555				4.82	%			-10.19	%
Deposit security, net			67,978				49,113				-27.75	%			18,443				12,515				12,282				-1.86	%			-33.41	%
Donation expenses			24,556				15,375				-37.39	%			23,168				601				12,980				2059.73	%			-43.97	%
Depreciation			116,060				122,835				5.84	%			32,616				29,695				29,944				0.84	%			-8.19	%
Total operating expenses			2,074,583				2,201,301				6.11	%			615,413				531,427				582,026				9.52	%			-5.43	%
Net operating income			1,157,008				1,487,216				28.54	%			377,887				371,172				475,592				28.13	%			25.86	%
Merger expenses			35,779				—				*				9,476				—				—				0.00	%			*
Goodwill amortization (1)			52,746				70,411				33.49	%			16,005				19,399				19,695				1.53	%			23.06	%
Non-operating income (expense) Other income			139,074				126,796				-8.83	%			(30,216	)			37,003				25,636				-30.72	%			184.84	%
Minority interest			(41,339	)			(13,246	)			-67.96	%			4,124				(2,174	)			12,826				689.97	%			211.01	%
Other expense			(117,095	)			(81,549	)			-30.36	%			21,945				(20,862	)			(34,641	)			66.05	%			-257.85	%
Total non-operating income			(19,360	)			32,001				265.29	%			(4,147	)			13,967				3,821				-72.64	%			192.14	%
Income before income taxes			1,049,123				1,448,806				38.10	%			348,259				365,740				459,718				25.70	%			32.00	%
Income tax expense			(219,635	)			(361,883	)			64.77	%			(49,432	)			(49,007	)			(137,222	)			180.00	%			177.60	%
Net income			829,488				1,086,923				31.04	%			298,827				316,733				322,496				1.82	%			7.92	%