UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

 

FORM 6-K

 

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

 

For the month of November, 2018

 

Comission File Number 001-32535

 

Bancolombia S.A.

(Translation of registrant’s name into English)

 

Cra. 48 # 26-85
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):___

 

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):___

 

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-                    .

 

 

 

 

 

 

 

 

 

 

    3Q18

 

BANCOLOMBIA S.A. (NYSE: CIB; BVC: BCOLOMBIA, PFBCOLOM) REPORTS CONSOLIDATED NET INCOME OF COP 543 BILLION FOR THE THIRD QUARTER OF 2018 WHICH REPRESENTS A DECREASE OF 8% COMPARED TO 2Q18 AND AN INCREASE OF 20% COMPARED TO 3Q17.

 

·Gross loans grew 4.0% when compared to 3Q17 and 0.9% during the quarter. This annual growth shows moderation in the credit demand in Colombia. Peso-denominated loans grew 5.8% when compared to 3Q17.

 

·Net interest income was COP 2.57 trillion for 3Q18, increasing by 0.6% when compared to 3Q17. This positive performance is mainly explained by the growth in the loan book. Net interest income increased by 0.9% during the quarter.

 

·The annualized net interest margin for the quarter was 5.8%. The margin decreased by 10 basis points during the quarter and registered the same number when compared to 3Q17, mainly affected by the reductions in the reference rate in Colombia that were reflected in the repricing of the loan portfolio. The control of the cost of deposits allowed moderating the decrease of the margin during the quarter.

 

·Provision charges for the quarter were COP 1.0 trillion and the coverage ratio for 90-day past due loans was 160.7%. Provision charges increased by 4.3% when compared to 3Q17 and by 3.8% compared to 2Q18, these provisions allow us to maintain a solid coverage ratio amid a challenging environment. New past due loans totaled COP 847 billion for the quarter.

 

·Efficiency was 48.6% during the last twelve months. Operating expenses decreased by 1.3% when compared to 3Q17. The annual decrease in operating expenses is explained by the reduction in the network of branches, personal expenses and tax contributions and other tax burden. Operating expenses decreased by 0.8% during the quarter.

 

·Net fees were COP 631 billion and increased by 4.1% compared to 3Q17. This growth was mainly driven by an increase in fees related to credit and debit cards and trust services. Net fees decreased by 2.1% during the quarter.

 

·Tier 1 ratio was 10.2% at September 30, 2018 and decreased by 4 basis points when compared to September 30, 2017. The capital adequacy ratio was 13.7%.

 

November 7, 2018. Medellin, Colombia – Today, BANCOLOMBIA S.A. (“Bancolombia” or “the Bank”) announced its earnings results for the third quarter of 20181. For the quarter ended on September 30, 2018 (“3Q18”), Bancolombia reported consolidated net income of COP 543 billion, or COP 564.78 per share - USD 0.76 per ADR. This net income represents a decrease of 8.2% compared to the quarter ended on June 30, 2018 (“2Q18”) and an increase of 20.5% compared to the quarter ended on September 30, 2017 (“3Q17”).

 

 

1. This report corresponds to the interim unaudited consolidated financial information of BANCOLOMBIA S.A. and its subsidiaries (“BANCOLOMBIA” or “The Bank”) which Bancolombia controls, amongst others, by owning directly or indirectly, more than 50% of the voting capital stock. This financial information has been prepared based on financial records generated in accordance with International Financial Reporting Standards – IFRS. BANCOLOMBIA maintains accounting records in Colombian pesos, referred to herein as “Ps.” or “COP”. The financial information for the quarter ended September 30, 2018 is not necessarily indicative of the results for any other future interim period. For more information, please refer to the Bank's filings with the Securities and Exchange Commission, which are available on the Commission's website at www.sec.gov.

. BANCOLOMBIA’s first IFRS financial statements will cover the year ending in 2015. 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. Any reference to BANCOLOMBIA means the Bank together with its affiliates, unless otherwise specified.

Representative Market Rate, October 1, 2018 $2,972.18 = US$ 1

 

1

 

    3Q18

 

BANCOLOMBIA: Summary of consolidated financial quarterly results

 

CONSOLIDATED BALANCE SHEET      
AND INCOME STATEMENT Quarter Growth
(COP million) 3Q17 2Q18 3Q18 3Q18/2Q18 3Q18/3Q17
ASSETS          
Net Loans 150,576,426 153,812,437 154,728,427 0.60% 2.76%
Investments 16,664,585 15,606,305 15,721,358 0.74% -5.66%
Other assets 36,851,865 35,134,604 36,205,543 3.05% -1.75%
Total assets 204,092,876 204,553,346 206,655,328 1.03% 1.26%
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
Deposits 127,891,132 130,318,773 130,334,802 0.01% 1.91%
Other liabilities 52,840,013 50,209,372 51,453,512 2.48% -2.62%
Total liabilities 180,731,145 180,528,145 181,788,314 0.70% 0.58%
Non-controlling interest 1,244,883 1,285,815 1,715,901 33.45% 37.84%
Shareholders' equity 22,116,848 22,739,386 23,151,113 1.81% 4.68%
Total liabilities and shareholders' equity 204,092,876 204,553,346 206,655,328 1.03% 1.26%
           
Interest income 4,103,889 3,945,743 3,965,553 0.50% -3.37%
Interest expense (1,551,894) (1,399,639) (1,397,178) -0.18% -9.97%
Net interest income 2,551,995 2,546,104 2,568,375 0.87% 0.64%
Net provisions (967,284) (972,136) (1,008,624) 3.75% 4.27%
Fees and income from service, net 606,512 644,684 631,346 -2.07% 4.09%
Other operating income 353,391 343,666 374,336 8.92% 5.93%
Total Dividends received and equity method 36,916 114,967 78,085 -32.08% 111.52%
Total operating expense (1,868,169) (1,859,001) (1,844,363) -0.79% -1.27%
Profit before tax 713,361 818,284 799,155 -2.34% 12.03%
Income tax (245,307) (195,002) (213,442) 9.46% -12.99%
Net income before non-controlling interest 468,054 623,282 585,713 -6.03% 25.14%
Non-controlling interest (17,248) (31,566) (42,494) 34.62% 146.37%
Net income 450,806 591,716 543,219 -8.20% 20.50%
           
PRINCIPAL RATIOS   Quarter   As of
  3Q17 2Q18 3Q18 3Q17 3Q18
PROFITABILITY          
Net interest margin (1) from continuing operations 5.84% 5.85% 5.81% 6.11% 5.81%
Return on average total assets (2) from continuing operations 0.89% 1.17% 1.05% 1.15% 1.08%
Return on average shareholders´ equity (3) 8.22% 10.57% 9.43% 10.61% 9.70%
EFFICIENCY          
Operating expenses to net operating income 52.64% 50.94% 50.50% 51.84% 50.94%
Operating expenses to average total assets 3.67% 3.66% 3.57% 3.75% 3.62%
Operating expenses to productive assets 4.28% 4.27% 4.17% 4.39% 4.22%
CAPITAL ADEQUACY          
Shareholders' equity to total assets 10.84% 11.12% 11.20% 10.84% 11.20%
Technical capital to risk weighted assets 13.42% 13.52% 13.66% 13.42% 13.66%
KEY FINANCIAL HIGHLIGHTS          
Net income per ADS from continuing operations 0.64 0.84 0.76 2.43 2.32
Net income per share $COP from continuing operations 468.70 615.20 564.78 1,781.09 1,722.45
P/BV ADS (4) 1.46 1.48 1.29 1.46 1.29
P/BV Local (5) (6) 1.42 1.49 1.33 1.42 1.33
P/E (7) from continuing operations 17.68 14.29 13.93 13.96 13.71
ADR price 45.79 47.78 41.72 45.79 41.72
Common share price (8) 32,740 35,320 31,900 32,740 31,900
Weighted average of Preferred Shares outstanding 961,827,000 961,827,000 961,827,000 961,827,000 961,827,000
USD exchange rate (quarter end) 2,936.67 2,930.80 2,972.18 2,936.67 2,972.18

 

(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) Defined as ADS price divided by ADS book value. (5) Defined as share price divided by share book value. (6) Share prices on the Colombian Stock Exchange. (7) Defined as market capitalization divided by annualized quarter results. (8) Prices at the end of the respective quarter.

 

2

    3Q18

 

1.BALANCE SHEET

 

1.1.Assets

 

As of September 30, 2018, Bancolombia’s assets totaled COP 206,655 billion, which represents an increase of 1.0% compared to 2Q18 and of 1.3% compared to 3Q17.

 

During the quarter, the COP depreciated 1.4% versus the USD and over the past 12 months, it depreciated 1.2%.

 

The increase in total assets during the quarter is largely explained by the growth in the loan book and Interbank borrowings.

 

1.2.Loan Portfolio

 

The following table shows the composition of Bancolombia’s loans by type and currency:

 

(COP Million) Amounts in COP Amounts in USD converted to COP Amounts in USD (thousands) Total
(1 USD = 2972,18 COP) 3Q18 3Q18/2Q18 3Q18 3Q18/2Q18 3Q18 3Q18/2Q18 3Q18 3Q18/2Q18
Commercial loans 74,995,180 -1.72% 37,489,526 3.42% 12,613,478 1.98% 112,484,706 -0.07%
Consumer loans 20,602,944 4.41% 8,949,192 3.09% 3,010,986 1.66% 29,552,136 4.01%
Mortgage loans 12,303,075 2.02% 9,302,435 1.14% 3,129,836 -0.27% 21,605,510 1.64%
Small business loans 627,745 0.14% 450,335 2.42% 151,517 0.99% 1,078,080 1.08%
Interests paid in advance (2,502) -16.95% (1,878) 13.85% (632) 12.27% (4,380) -6.05%
Gross loans 108,526,442 -0.18% 56,189,610 2.98% 18,905,184 1.54% 164,716,053 0.87%

 

In 3Q18, gross loans increased by 0.9% when compared to 2Q18. Peso-denominated loans grew 5.8% and the dollar-denominated loans decreased by 0.6% when compared to 3Q17. In comparison with 3Q17, total gross loans grew 4.0%.

 

As of September 30, 2018, the operations in Banco Agricola in El Salvador, Banistmo in Panama and BAM in Guatemala, represented 25% of total gross loans.

 

Gross loans denominated in currencies other than COP, originated by the operations in Central America, the offshore operation of Bancolombia Panama and the USD denominated loans in Colombia, accounted for 34.1% and increased by 3.0% during 3Q18 (when expressed in COP), explained mainly by the depreciation of the COP against the USD during the quarter.

 

Total reserves (allowances in the balance sheet) for loan losses increased by 5.4% during the quarter and totaled COP 9,988 billion, equivalent to 6.1% of gross loans at the end of the quarter.

 

For further explanation regarding coverage of the loan portfolio and credit quality trends, (see section 2.4. Asset Quality, Provision Charges and Balance Sheet Strength).

 

The following table summarizes Bancolombia’s total loan portfolio:

 

LOAN PORTFOLIO           % of total loans
(COP million) 3Q17 2Q18 3Q18 3Q18/2Q18 3Q18/3Q17
Commercial 110,537,937 112,559,923 112,484,706 -0.07% 1.76% 68.3%
Consumer 26,505,346 28,413,584 29,552,136 4.01% 11.50% 17.9%
Mortgage 20,287,544 21,256,724 21,605,510 1.64% 6.50% 13.1%
Microcredit 1,078,436 1,066,597 1,078,080 1.08% -0.03% 0.7%
Interests received in advance - (4,662) (4,380) -6.05% 100.00% 0.0%
Total loan portfolio 158,409,263 163,292,166 164,716,053 0.87% 3.98% 100.0%
Allowance for loan losses (7,832,837) (9,479,729) (9,987,626) 5.36% 27.51%  
Total loans, net 150,576,426 153,812,437 154,728,427 0.60% 2.76%  

 

3

    3Q18

 

1.3.Investment Portfolio

 

As of September 30, 2018, Bancolombia’s net investment portfolio totaled COP 15,721 billion, increasing by 0.7% from the end of 2Q18 and decreasing by 5.7% from the end of 3Q17. The investment portfolio consists primarily of debt securities, which represent 68.1% of Bancolombia’s total investments and 5.2% of assets at the end of 3Q18.

 

At the end of 3Q18, the debt securities portfolio had a duration of 19.6 months and a weighted average yield to maturity of 4.3%.

 

1.4.Goodwill and intangibles

 

As of 3Q18, Bancolombia’s goodwill and intangibles totaled COP 6,597 billion, increasing by 1.5% compared to 2Q18. This variation is explained by the depreciation of the COP against the USD during the quarter.

 

1.5.Funding

 

As of September 30, 2018, Bancolombia’s liabilities totaled COP 181,788 billion, increasing by 0.7% from the end of 2Q18 and by 0.6% compared to 3Q17.

 

Deposits by customers totaled COP 130,335 billion (or 71.7% of liabilities) at the end of 3Q18, same figure when compared to 2Q18 and increasing by 1.9% over the last 12 months. The net loans to deposits ratio was 118.7% at the end of 3Q18.

 

Bancolombia’s funding strategy during the last months has been to reduce the average life of time deposits and promote saving and checking accounts in the consumer segment in order to keep the funding cost at a minimum. The objective is to build and maintain ample liquidity and reduce the sensitivity of the balance sheet to cuts in interest rates.

 

Funding mix 3Q17 2Q18 3Q18
COP Million          
Checking accounts 20,232,549 12% 20,405,763 12% 20,436,265 12%
Saving accounts 51,418,374 30% 54,286,041 32% 53,926,535 32%
Time deposits 55,100,729 33% 54,543,374 32% 54,742,421 32%
Other deposits 5,358,634 3% 5,917,969 3% 5,577,801 3%
Long term debt 19,365,423 11% 18,729,888 11% 19,176,927 11%
Loans with banks 17,935,827 11% 15,357,472 9% 16,922,913 10%
Total Funds 169,411,536 100% 169,240,507 100% 170,782,862 100%

 

1.6.Shareholders’ Equity and Regulatory Capital

 

Shareholders’ equity at the end of 3Q18 was COP 23,151 billion, increasing by 1.8% compared to 2Q18 and by 4.7% when compared to 3Q17.

 

Bancolombia’s capital adequacy ratio was 13.66% in 3Q18, 466 basis points above the minimum 9% required by the Colombian regulator, while the basic capital ratio (Tier 1) to risk weighted assets was 10.24%, 574 basis points above the regulatory minimum of 4.5%.

 

The tangible capital ratio, defined as shareholders’ equity minus goodwill and intangible assets divided by tangible assets, was 8.1% at the end of 3Q18.

 

4

    3Q18

 

In the last months, Bancolombia has generated capital organically due to the appropriation of earnings in March 2018. The annual increase in the RWA is mainly explained by the growth in the loan book.

 

TECHNICAL CAPITAL RISK WEIGHTED ASSETS            
Consolidated (COP millions) 3Q17 % 2Q18 % 3Q18 %
Basic capital (Tier I) 17,897,207 10.28% 18,856,171 10.02% 19,331,181 10.24%
Additional capital (Tier II) 5,474,092 3.14% 6,584,425 3.50% 6,449,636 3.42%
Technical capital (1) 23,371,299   25,440,595   25,780,818  
Risk weighted assets including market risk 174,129,964   188,204,931   188,734,013  
CAPITAL ADEQUACY (2)   13.42%   13.73%   13.66%

 

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

 

5

    3Q18

 

2.INCOME STATEMENT

 

Net income totaled COP 543 billion in 3Q18, or COP 564.78 per share - USD 0.76 per ADR. This net income represents a decrease of 8.2% compared to 2Q18 and an increase of 20.5% compared to 3Q17. Bancolombia’s annualized ROE for 3Q18 was 9.4%.

 

2.1.Net Interest Income

 

Net interest income totaled COP 2,568 billion in 3Q18, 0.9% more than the one reported in 2Q18, and 0.6% more than the figure for 3Q17. During the quarter, the Net Interest Income was impacted negatively by the implementation of IFRS 9 during 2018, which caused a reduction of COP 107 billion.

 

During 3Q18, the investment, interest rate derivatives and repos portfolio generated COP 133 billion, up by 4.6% from 2Q18.

 

Net Interest Margin

 

The annualized net interest margin decreased to 5.8% in 3Q18. The annualized net interest margin for investments was 1.9%, and the annualized net interest margin of the loan portfolio was 6.1%, decreasing compared to the one reported in 2Q18.

 

Annualized Interest      
Margin 3Q17 2Q18 3Q18
Loans' Interest margin 6.3% 6.2% 6.1%
Debt investments' margin 0.9% 1.3% 1.9%
Net interest margin 5.8% 5.9% 5.8%

 

Total funding cost decreased during 3Q18, due to the reduction of long-term debt, as well as a reduction of the average life of time deposits. Savings and checking accounts represented the same proportion of the total funding as in 2Q18, and the annualized average weighted cost of deposits was 2.86% in 3Q18, decreasing 9 basis point compared to 2Q18 and 46 basis points compared to 3Q17.

 

Average weighted      
funding cost 3Q17 2Q18 3Q18
Checking accounts 0.00% 0.00% 0.00%
Saving accounts 2.28% 1.84% 1.82%
Time deposits 5.46% 5.16% 4.97%
Total deposits 3.32% 2.95% 2.86%
Long term debt 6.11% 5.91% 6.01%
Loans with banks 2.52% 2.24% 2.31%
Total funding cost 3.49% 3.17% 3.13%

 

2.2.Fees and Income from Services

 

During 3Q18, net fees and income from services totaled COP 631 billion, decreasing by 2.1% compared to 2Q18, and increasing by 4.1% compared to 3Q17. The positive annual performance in fees compared with 3Q17 is due to higher volumes of transactions and the good performance of credit and debit cards and trust services.

 

6

    3Q18

 

Fees from credit and debit cards decreased by 3.1% compared to 2Q18 and increased by 24.9% compared to 3Q17. Fees from asset management and trust services increased by 2.5% compared to 2Q18 and 11.5% compared to 3Q17, due to an increase in the assets under management. Fees from our bancassurance business increased by 2.9% compared to 2Q18 and decreased by 2.3% with respect to 3Q17.

 

The following table summarizes Bancolombia’s market share in the credit card business in Colombia:

 

ACCUMULATED CREDIT CARD BILLING % 2018
(COP millions) Jul-17 Jul-18 Growth Market Share
Bancolombia VISA 3,802,517 4,730,834 24.41% 11.36%
Bancolombia Mastercard 3,292,170 3,693,732 12.20% 8.87%
Bancolombia American Express 2,206,341 2,063,843 -6.46% 4.96%
Total Bancolombia 9,301,029 10,488,410 12.77% 25.19%
Colombian Credit Card Market 38,132,076 41,630,259 9.17%  
         
CREDIT CARD MARKET SHARE % 2018
(Outstanding credit cards) Jul-17 Jul-18 Growth Market Share
Bancolombia VISA 768,281 848,018 10.38% 5.03%
Bancolombia Mastercard 897,269 951,642 6.06% 5.64%
Bancolombia American Express 582,746 565,617 -2.94% 3.35%
Total Bancolombia 2,248,296 2,365,277 5.20% 14.02%
Colombian Credit Card Market 16,689,834 16,875,543 1.11%  

 

Source: Superintendencia Financiera de Colombia

 

2.3.Other Operating Income

 

Total other operating income was COP 374 billion in 3Q18, increasing by 8.9% compared to 2Q18 and by 5.9% compared to 3Q17.

 

Revenues from the operating leases totaled COP 159 billion in 3Q18, increasing by 1.4% compared to 2Q18 and by 11.6% compared to those reported in 3Q17. The annual increase is due to higher volumes of operations and delivered assets under leasing.

 

2.4.Asset Quality, Provision Charges and Balance Sheet Strength

 

The principal balance for past due loans (those that are overdue for more than 30 days) totaled COP 8,119 billion at the end of 3Q18 and represented 5.1% of total gross loans, decreasing by 1.3% compared to 2Q18, when past due loans represented 5.2% of total gross loans. During 3Q18, Charge-offs totaled COP 956 billion.

 

The coverage, measured by the ratio of allowances for loans losses (principal) to PDLs (overdue 30 days), was 112.2% at the end of 3Q18, increasing compared to 105.4% at the end of 2Q18.

 

Regarding IFRS 9 implementation, during 2018 the bank has been refining the estimates of ECL models (Expected Credit Loss) as revealed in 1Q18 and during 3Q18, the bank adjusted the initial impact to COP 1,004 billion from COP 599 billion as reported in 1Q18. The bank is still fine tuning the final impact for the year.

 

The effect of this increase in allowances for loans losses (principal) improved the coverage ratio during the 3Q18.

 

7

    3Q18

 

 The deterioration of the loan portfolio (new past due loans including charge-offs) was COP 847 billion in 3Q18. During the quarter, the 30-day NPLs in SMEs improved significantly. Provision charges (net of recoveries) totaled COP 1,009 billion in 3Q18.

 

Provisions as a percentage of the average gross loans were 2.5% for 3Q18 and 2.4% for the last 12 months.

 

Cost of risk excluding the corporate cases (Electricaribe, Ruta del Sol and Consorcio Express) was 1.7% for 3Q18 and 1.9% for the last 12 months.

 

Bancolombia maintains a strong balance sheet supported by an adequate level of loan loss reserves. Allowances (for the principal) for loan losses totaled COP 9,111 billion, or 5.7% of total loans at the end of 3Q18, increasing as compared to 2Q18.

 

The following tables present key metrics related to asset quality:

 

ASSET QUALITY As of
(COP millions) 3Q17 2Q18 3Q18
Total 30-day past due loans 6,873,306 8,228,079 8,118,514
Allowance for loan losses (1) 7,111,020 8,672,006 9,111,049
Past due loans to total loans 4.50% 5.20% 5.09%
Allowances to past due loans 103.46% 105.40% 112.23%
Allowance for loan losses as a percentage of total loans 4.65% 5.48% 5.71%

 

(1) Allowances are reserves for the principal of loans.

 

PDL Per Category     30 days
  % Of loan Portfolio 3Q17 2Q18 3Q18
Commercial loans 68.3% 3.42% 4.42% 4.29%
Consumer loans 17.9% 5.81% 5.78% 5.61%
Mortgage loans 13.1% 8.01% 8.10% 8.06%
Microcredit 0.7% 13.38% 12.30% 11.75%
PDL TOTAL   4.50% 5.20% 5.09%
         
PDL Per Category     90 days
  % Of loan Portfolio 3Q17 2Q18 3Q18
Commercial loans 68.3% 2.69% 3.48% 3.64%
Consumer loans 17.9% 3.02% 3.18% 2.97%
Mortgage loans* 13.1% 3.37% 3.65% 3.63%
Microcredit 0.7% 9.39% 8.39% 8.08%
PDL TOTAL   2.88% 3.48% 3.55%

 

* Mortgage loans that were overdue were calculated for past due loans for 120 days instead of 90 days.

 

2.5.Operating Expenses

 

During 3Q18, operating expenses totaled COP 1,844 billion, decreasing by 0.8% with respect to 2Q18 and by 1.3% with respect to 3Q17. The annual decrease in operating expenses is explained by the reduction in the network of branches, personal expenses and tax contributions and other tax burden

 

Personnel expenses (salaries, bonus plan payments and compensation) totaled COP 754 billion in 3Q18, increasing by 1.0% compared to 2Q18 and by 1.8% compared to 3Q17.

 

During 3Q18, administrative expenses totaled COP 735 billion, increasing by 0.9% compared to 2Q18 and by decreasing 1.4% as compared to 3Q17.

 

8

    3Q18

 

Depreciation and amortization expenses totaled COP 132 billion in 3Q18, increasing by 16.8% compared to 2Q18 and by 9.8% compared to 3Q17.

 

As of September 30, 2018, Bancolombia had 30,973 employees, owned 1,041 branches, 5,849 ATMs, 11,495 banking agents and served more than 13 million customers.

 

2.6.Taxes

 

Income tax expense was COP 213 billion for 3Q18, increasing by 9.5% when compared to the income tax registered in 2Q18, and decreasing by 13.0% compared to 3Q17.

 

9

    3Q18

  

3.BREAK DOWN OF OPERATIONS

 

The following table summarizes the financial statements of our operations in each country.

 

BANCOLOMBIA S.A. (STAND ALONE) - COLOMBIA

 

CONSOLIDATED BALANCE SHEET        
AND INCOME STATEMENT Quarter Growth
(COP million) 3Q17 2Q18 3Q18 3Q18/2Q18 3Q18/3Q17
ASSETS          
Gross loans 111,608,945 115,783,278 115,612,740 -0.15% 3.59%
Allowances for loans (6,712,563) (7,856,741) (8,276,291) 5.34% 23.30%
Investments 18,625,027 17,475,344 17,353,442 -0.70% -6.83%
Other assets 16,749,333 16,591,837 17,203,478 3.69% 2.71%
Total assets 140,270,741 141,993,718 141,893,370 -0.07% 1.16%
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
Deposits 82,093,223 84,699,371 84,645,861 -0.06% 3.11%
Other liabilities 41,925,678 40,878,095 40,921,449 0.11% -2.40%
Total liabilities 124,018,901 125,577,467 125,567,310 -0.01% 1.25%
Shareholders' equity 16,251,839 16,416,251 16,326,059 -0.55% 0.46%
Total liabilities and shareholders' equity 140,270,741 141,993,718 141,893,370 -0.07% 1.16%
           
Interest income 3,236,032 3,095,540 3,011,024 -2.73% -6.95%
Interest expense (1,257,962) (1,123,555) (1,085,060) -3.43% -13.74%
Net interest income 1,978,069 1,971,985 1,925,963 -2.33% -2.63%
Net provisions (869,353) (859,887) (895,289) 4.12% 2.98%
Fees and income from service, net 387,612 411,235 402,785 -2.05% 3.91%
Other operating income 201,592 125,722 151,372 20.40% -24.91%
Total operating expense (1,276,077) (1,300,889) (1,248,111) -4.06% -2.19%
Profit before tax 421,844 348,166 336,721 -3.29% -20.18%
Income tax (169,069) (59,446) (154,113) 159.25% -8.85%
Net income 252,775 288,720 182,608 -36.75% -27.76%

 

BANISTMO- PANAMA

 

CONSOLIDATED BALANCE SHEET        
AND INCOME STATEMENT Quarter Growth
(COP million) 3Q17 2Q18 3Q18 3Q18/2Q18 3Q18/3Q17
ASSETS          
Gross loans 22,322,227 22,167,293 22,519,736 1.59% 0.88%
Allowances for loans (406,655) (661,934) (708,515) 7.04% 74.23%
Investments 2,737,570 2,931,835 3,067,872 4.64% 12.07%
Other assets 4,296,165 3,043,765 3,272,935 7.53% -23.82%
Total assets 28,949,307 27,480,959 28,152,028 2.44% -2.75%
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
Deposits 18,810,084 18,889,905 18,694,296 -1.04% -0.62%
Other liabilities 7,231,648 5,684,741 6,444,067 13.36% -10.89%
Total liabilities 26,041,732 24,574,646 25,138,364 2.29% -3.47%
Shareholders' equity 2,907,575 2,906,313 3,013,664 3.69% 3.65%
Total liabilities and shareholders' equity 28,949,307 27,480,959 28,152,028 2.44% -2.75%
           
Interest income 376,618 373,342 405,220 8.54% 7.59%
Interest expense (144,872) (137,495) (149,987) 9.09% 3.53%
Net interest income 231,746 235,847 255,233 8.22% 10.13%
Net provisions (69,109) (55,805) (60,257) 7.98% -12.81%
Fees and income from service, net 47,669 47,691 46,634 -2.22% -2.17%
Other operating income 4,625 13,914 10,886 -21.77% 135.35%
Total operating expense (154,744) (156,007) (154,720) -0.83% -0.02%
Profit before tax 60,188 85,641 97,776 14.17% 62.45%
Income tax (22,617) (17,049) (17,133) 0.49% -24.25%
Net income 37,571 68,592 80,642 17.57% 114.64%

 

10

    3Q18

 

BANCO AGRÍCOLA- EL SALVADOR

 

CONSOLIDATED BALANCE SHEET        
AND INCOME STATEMENT Quarter Growth
(COP million) 3Q17 2Q18 3Q18 3Q18/2Q18 3Q18/3Q17
ASSETS          
Gross loans 9,040,300 9,256,233 9,629,506 4.03% 6.52%
Allowances for loans (352,015) (359,688) (388,956) 8.14% 10.49%
Investments 478,909 635,680 673,037 5.88% 40.54%
Other assets 3,420,320 3,386,062 3,143,424 -7.17% -8.10%
Total assets 12,587,515 12,918,288 13,057,010 1.07% 3.73%
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
Deposits 8,689,015 9,256,571 9,331,147 0.81% 7.39%
Other liabilities 2,342,984 2,095,057 2,094,468 -0.03% -10.61%
Total liabilities 11,031,999 11,351,628 11,425,615 0.65% 3.57%
Shareholders' equity 1,555,516 1,566,659 1,631,395 4.13% 4.88%
Total liabilities and shareholders' equity 12,587,515 12,918,288 13,057,010 1.07% 3.73%
           
Interest income 228,409 223,878 227,039 1.41% -0.60%
Interest expense (67,324) (61,597) (62,622) 1.66% -6.98%
Net interest income 161,085 162,282 164,417 1.32% 2.07%
Net provisions (28,304) (13,731) (26,953) 96.29% -4.77%
Fees and income from service, net 43,033 44,980 45,789 1.80% 6.40%
Other operating income (8,025) 929 721 -22.31% -108.99%
Total operating expense (98,675) (104,647) (104,288) -0.34% 5.69%
Profit before tax 69,114 89,812 79,686 -11.27% 15.30%
Income tax (20,880) (29,394) (35,665) 21.33% 70.81%
Net income 48,234 60,417 44,021 -27.14% -8.73%

 

GRUPO AGROMERCANTIL HOLDING – GUATEMALA

 

CONSOLIDATED BALANCE SHEET        
AND INCOME STATEMENT Quarter Growth
(COP million) 3Q17 2Q18 3Q18 3Q18/2Q18 3Q18/3Q17
ASSETS          
Gross loans 8,511,380 9,106,278 9,182,744 0.84% 7.89%
Allowances for loans (155,975) (384,277) (433,581) 12.83% 177.98%
Investments 1,721,330 1,437,613 1,452,086 1.01% -15.64%
Other assets 1,864,607 2,030,708 2,102,252 3.52% 12.75%
Total assets 11,941,343 12,190,322 12,303,501 0.93% 3.03%
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
Deposits 8,261,134 8,533,909 8,552,252 0.21% 3.52%
Other liabilities 2,371,227 2,470,407 2,568,322 3.96% 8.31%
Total liabilities 10,632,361 11,004,317 11,120,574 1.06% 4.59%
Non-controlling interest 20,261 19,531 19,987 2.34% -1.35%
Shareholders' equity 1,288,720 1,166,475 1,162,940 -0.30% -9.76%
Total liabilities and shareholders' equity 11,941,343 12,190,322 12,303,501 0.93% 3.03%
           
Interest income 212,929 202,170 246,278 21.82% 15.66%
Interest expense (89,680) (88,918) (96,249) 8.24% 7.32%
Net interest income 123,248 113,252 150,030 32.47% 21.73%
Net provisions (24,915) (45,573) (47,990) 5.30% 92.62%
Fees and income from service, net 25,263 30,440 26,700 -12.28% 5.69%
Other operating income 12,496 12,207 10,576 -13.36% -15.36%
Total operating expense (110,422) (100,934) (122,841) 21.70% 11.25%
Profit before tax 25,670 9,391 16,475 75.44% -35.82%
Income tax (8,441) (1,203) 287 -123.83% -103.40%
Net income before non-controlling interest 17,229 8,188 16,762 104.72% -2.71%
Non-controlling interest (853) (611) (746) 22.12% -12.56%
Net income 16,376 7,577 16,016 111.38% -2.20%

 

11

    3Q18

 

4.RECENT DEVELOPMENTS

 

·July 18, 2018. Bancolombia S.A. announced that it issued and placed in the Colombian market its public offering of its Green Notes in an aggregate amount of COP 300,000 million. The amount being offered is of up to COP 200,000 million, with the possibility of increasing the size of the issue by allocating up to COP 100,000 million more. Demand for this issuance was for COP 565,516 million, equivalent to approximately 2.83 times the offered amount.

 

Banca de Inversión Bancolombia S.A. Corporación Financiera acted as lead arranger and Bancolombia S.A. and Valores Bancolombia S.A. Comisionista de Bolsa acted as joint bookrunners for the offering.

 

12

 

    3Q18

 

5.BANCOLOMBIA Company Description (NYSE: CIB)

 

GRUPO BANCOLOMBIA is a full service financial conglomerate incorporated in Colombia that offers a wide range of banking products and services to a diversified individual and corporate customer base of more than 13 million customers. GRUPO BANCOLOMBIA delivers its products and services via its regional network comprised of: Colombia’s largest non-government owned banking network, El Salvador’s leading financial conglomerate (Banagricola S.A.), off-shore and local (Banistmo S.A.) banking subsidiaries in Panama, Guatemala, Cayman and Puerto Rico. Together, BANCOLOMBIA and its subsidiaries provide stock brokerage, investment banking, leasing, factoring, consumer finance, fiduciary and trust services, asset management, among others.

 

Contact Information

 

Bancolombia’s Investor Relations

Phone: (574) 4041837 / (574) / (574) 4043917/ (574) 4041918.

E-mail: IR@bancolombia.com.co

Contacts: Alejandro Mejia (IR Manager) / Juliana Álvarez (Analyst) / Santiago López (Analista).

Website: http://www.grupobancolombia.com/wps/portal/about-us/corporate-information/investor-relations/

 

13

 

    3Q18

  

BALANCE SHEET       Growth    
(COP million) Sep-17 Jun-18 Sep-18 sep-18 / jun-18 sep-18 / sep-17 % of Assets % of Liabilities
ASSETS              
Cash and balances at central bank 14,945,466 13,056,537 13,860,509 6.16% -7.26% 6.71%  
Interbank borrowings 2,810,198 1,023,666 1,797,802 75.62% -36.03% 0.87%  
Reverse repurchase agreements and other similar secured lend 810,128 2,346,958 1,693,536 -27.84% 109.05% 0.82%  
Financial assets investments 16,664,585 15,606,305 15,721,358 0.74% -5.66% 7.61%  
Derivative financial instruments 1,316,828 1,058,922 1,168,618 10.36% -11.26% 0.57%  
Loans and advances to customers 158,409,263 163,292,166 164,716,053 0.87% 3.98% 79.71%  
Allowance for loan and lease losses (7,832,837) (9,479,729) (9,987,626) 5.36% 27.51% -4.83%  
Investment in associates and joint ventures 1,595,238 1,749,572 1,802,640 3.03% 13.00% 0.87%  
Goodwill and Intangible assets, net 6,526,087 6,501,382 6,597,390 1.48% 1.09% 3.19%  
Premises and equipment, net 3,150,714 3,072,268 3,171,141 3.22% 0.65% 1.53%  
Investment property 1,690,594 1,709,787 1,702,201 -0.44% 0.69% 0.82%  
Prepayments 357,337 289,113 316,419 9.44% -11.45% 0.15%  
Tax receivables 871,142 683,588 867,368 26.88% -0.43% 0.42%  
Deferred tax 711,680 1,135,930 732,206 -35.54% 2.88% 0.35%  
Assets held for sale and inventories 302,437 466,468 566,908 21.53% 87.45% 0.27%  
Other assets 1,764,016 2,040,413 1,928,805 -5.47% 9.34% 0.93%  
Total assets 204,092,876 204,553,346 206,655,328 1.03% 1.26% 100.00%  
LIABILITIES AND SHAREHOLDERS' EQUITY              
LIABILITIES              
Deposit by customers 127,891,132 130,318,773 130,334,802 0.01% 1.91% 63.07% 71.70%
Interbank Deposits 1,087,444 1,548,842 1,889,628 22.00% 73.77% 0.91% 1.04%
Derivative financial instrument 966,207 971,813 969,802 -0.21% 0.37% 0.47% 0.53%
Borrowings from other financial institutions 16,848,383 13,808,630 15,033,285 8.87% -10.77% 7.27% 8.27%
Debt securities in issue 19,365,423 18,729,888 19,176,927 2.39% -0.97% 9.28% 10.55%
Preferred shares 568,005 554,439 569,017 2.63% 0.18% 0.28% 0.31%
Repurchase agreements and other similar secured borrowing 4,219,154 4,834,374 4,348,220 -10.06% 3.06% 2.10% 2.39%
Liabilities relating to assets held for sale - 121,737 154,790 27.15% 0.00% 0.07% 0.09%
Current tax 857,168 404,676 571,045 41.11% -33.38% 0.28% 0.31%
Deferred tax 1,885,322 2,384,920 1,873,392 -21.45% -0.63% 0.91% 1.03%
Employees benefit plans 127,867 131,171 130,911 -0.20% 2.38% 0.06% 0.07%
Other liabilities 6,915,040 6,718,882 6,736,495 0.26% -2.58% 3.26% 3.71%
Total liabilities 180,731,145 180,528,145 181,788,314 0.70% 0.58% 87.97% 100.00%
SHAREHOLDERS' EQUITY              
Share Capital 480,914 480,914 480,914 0.00% 0.00% 0.23%  
Additional paid-in-capital 4,857,454 4,857,454 4,857,454 0.00% 0.00% 2.35%  
Appropriated reserves 9,061,138 9,943,469 9,940,172 -0.03% 9.70% 4.81%  
Retained earnings 5,226,878 4,948,950 5,288,377 6.86% 1.18% 2.56%  
Accumulated other comprehensive income (loss), net of tax 2,490,464 2,508,599 2,584,195 3.01% 3.76% 1.25%  
Stockholders’ equity attributable to the owners of the parent company 22,116,848 22,739,386 23,151,113 1.81% 4.68% 11.20%  
Non-controlling interest 1,244,883 1,285,815 1,715,901 33.45% 37.84% 0.83%  
Total liabilities and equity 204,092,876 204,553,346 206,655,328 1.03% 1.26% 100.00%  

 

14

 

    3Q18

  

INCOME STATEMENT As of Growth       Growth
(COP million) Sep-17 Sep-18 sep-18 / sep-17 3Q 17 2Q 18 3Q 18 3Q18 / 2Q18 3Q18 / 3Q17
Interest income and expenses                
Interest on loans and financial leases                
Commercial 6,043,797 5,385,931 -10.88% 1,968,634 1,780,210 1,812,679 1.82% -7.92%
Consumer 2,800,098 3,067,506 9.55% 990,309 1,023,691 1,049,558 2.53% 5.98%
Small business loans 178,411 165,859 -7.04% 60,666 53,978 58,144 7.72% -4.16%
Mortgage 1,419,479 1,415,765 -0.26% 434,229 479,320 441,353 -7.92% 1.64%
Leasing 1,559,348 1,424,001 -8.68% 501,359 473,344 462,748 -2.24% -7.70%
Interest income on loans and financial leases 12,001,133 11,459,062 -4.52% 3,955,197 3,810,543 3,824,482 0.37% -3.30%
Interest income on overnight and market funds 20,256 25,323 25.01% 8,697 8,415 8,490 0.89% -2.38%
Interest and valuation on Investments                
Debt investments, net 120,110 91,669 -23.68% 38,621 45,099 2,244 -95.02% -94.19%
Net gains from investment activities at fair value through income statement                
Debt investments 500,080 319,654 -36.08% 133,105 92,976 143,275 54.10% 7.64%
Derivatives (34,234) 11,396 133.29% (7,138) 2,589 (3,404) -231.48% -52.31%
Repos (79,787) (40,583) -49.14% (28,232) (17,339) (12,780) -26.29% -54.73%
Other 6,514 (8,486) -230.27% 3,639 3,460 3,246 -6.18% -10.80%
Total Net gains from investment activities at fair value through profit and loss 392,573 281,981 -28.17% 101,374 81,686 130,337 59.56% 28.57%
Total Interest and valuation on investments   512,683 373,650 -27.12% 139,995 126,785 132,581 4.57% -5.30%
Total interest and valuation 12,534,072 11,858,035 -5.39% 4,103,889 3,945,743 3,965,553 0.50% -3.37%
Interest expense                
Borrowing costs (524,306) (420,795) -19.74% (173,700) (136,393) (149,133) 9.34% -14.14%
Overnight funds (13,376) (12,117) -9.41% (4,900) (3,300) (6,949) 110.58% 41.82%
Debt securities in issue (886,522) (844,390) -4.75% (287,593) (274,277) (285,000) 3.91% -0.90%
Deposits (3,247,786) (2,896,754) -10.81% (1,066,944) (966,268) (937,961) -2.93% -12.09%
Preferred Shares Dividends (43,734) (43,734) 0.00% (14,578) (14,065) (14,578) 3.65% 0.00%
Other interest (expense) (11,656) (13,221) 13.43% (4,179) (5,336) (3,557) -33.34% -14.88%
Total interest expenses (4,727,380) (4,231,011) -10.50% (1,551,894) (1,399,639) (1,397,178) -0.18% -9.97%
Net interest margin and valuation income on financial instruments before impairment on loans and financial leases and off balance sheet credit instruments 7,806,692 7,627,024 -2.30% 2,551,995 2,546,104 2,568,375 0.87% 0.64%
Credit impairment charges on loans and advance and financial leases (2,807,138) (3,221,594) 14.76% (1,053,109) (1,097,310) (1,160,246) 5.74% 10.17%
Recovery of charged-off loans 251,232 329,258 31.06% 83,866 121,069 123,786 2.24% 47.60%
Credit impairment charges on/recoveries on off balance sheet credit instruments 24,429 25,891 5.98% 1,959 4,105 17,167 318.20% 776.31%
Credit impairment charges/recoveries on investments - 10,669 0.00% - - 10,669 0.00% 0.00%
Total credit impairment charges, net (2,531,477) (2,855,776) 12.81% (967,284) (972,136) (1,008,624) 3.75% 4.27%
Net interest margin and valuation income on financial instruments after impairment on loans and financial leases and off balance sheet credit instruments 5,275,215 4,771,248 -9.55% 1,584,711 1,573,968 1,559,751 -0.90% -1.58%
Fees and comissions income                
Banking services 651,681 583,312 -10.49% 219,732 176,679 191,189 8.21% -12.99%
Credit and debit card fees and commercial establishments 867,316 1,058,300 22.02% 288,434 371,756 360,294 -3.08% 24.91%
Brokerage 15,753 21,274 35.05% 4,323 8,852 6,639 -25.00% 53.57%
Acceptances and Guarantees 42,658 43,749 2.56% 15,829 18,679 14,076 -24.64% -11.07%
Trust 263,931 298,345 13.04% 91,891 99,946 102,465 2.52% 11.51%
Bancassurance 278,082 302,241 8.69% 106,444 101,040 103,984 2.91% -2.31%
Payments and Collections 166,097 194,143 16.89% 61,823 65,079 66,573 2.30% 7.68%
Other 320,564 311,981 -2.68% 94,971 99,685 100,389 0.71% 5.70%
Fees and comission income 2,606,082 2,813,345 7.95% 883,447 941,716 945,609 0.41% 7.04%
Fees and comission expenses                
Banking services (288,482) (320,834) 11.21% (98,731) (105,511) (109,859) 4.12% 11.27%
Other (471,035) (536,564) 13.91% (178,204) (191,521) (204,404) 6.73% 14.70%
Fees and comission expenses (759,517) (857,398) 12.89% (276,935) (297,032) (314,263) 5.80% 13.48%
Total fees and comissions, net 1,846,565 1,955,947 5.92% 606,512 644,684 631,346 -2.07% 4.09%
Other operating income                
Derivatives FX contracts (12,474) 17,242 238.22% 4,936 135,678 67,192 -50.48% 1261.26%
Net foreign exchange 251,382 72,242 -71.26% 48,770 (104,373) (51,849) -50.32% -206.31%
Hedging (2,900) 10,244 453.24% (88) 7,023 3,657 -47.93% 4255.68%
Operating leases 416,597 459,912 10.40% 142,148 156,489 158,636 1.37% 11.60%
Gains (or losses) on sale of assets 13,448 38,154 183.72% 1,971 8,524 18,259 114.21% 826.38%
Other reversals 1,628 2,581 58.54% 364 1,079 674 -37.53% 85.16%
Other 406,302 436,084 7.33% 155,290 139,246 177,767 27.66% 14.47%
Total other operating income 1,073,983 1,036,459 -3.49% 353,391 343,666 374,336 8.92% 5.93%
Dividends received, and share of profits of equity method investees                
Dividends 21,096 44,475 110.82% 4,351 17,474 15,288 -12.51% 251.37%
Equity investments (35,150) 25,202 171.70% 4,760 23,130 4,874 -78.93% 2.39%
Equity method 104,493 171,541 64.17% 27,805 74,363 57,923 -22.11% 108.32%
Impairment charges on joint ventures - - 0.00% - - - 0.00% 0.00%
Total dividends received, and share of profits of equity method investees 90,439 241,218 166.72% 36,916 114,967 78,085 -32.08% 111.52%
Total operating income, net 8,286,202 8,004,872 -3.40% 2,581,530 2,677,285 2,643,518 -1.26% 2.40%

 

15

 

    3Q18

 

INCOME STATEMENT As of Growth       Growth
(COP million) Sep-17 Sep-18 sep-18 / sep-17 3Q 17 2Q 18 3Q 18 3Q18 / 2Q18 3Q18 / 3Q17
Operating expenses                
Salaries and employee benefits (1,862,659) (1,946,538) 4.50% (607,697) (653,969) (650,487) -0.53% 7.04%
Bonuses (434,478) (315,893) -27.29% (132,340) (91,815) (103,085) 12.27% -22.11%
Other administrative and general expenses (2,078,597) (2,164,458) 4.13% (745,306) (727,846) (734,640) 0.93% -1.43%
Tax contributions and other tax burden (643,969) (549,817) -14.62% (203,726) (211,681) (158,956) -24.91% -21.98%
Impairment, depreciation and amortization (356,395) (363,211) 1.91% (120,144) (112,948) (131,879) 16.76% 9.77%
Other expenses (180,341) (192,329) 6.65% (58,956) (60,742) (65,316) 7.53% 10.79%
Equity Tax (51,220) - -100.00% - - - 0.00% 0.00%
Total operating expenses (5,607,659) (5,532,246) -1.34% (1,868,169) (1,859,001) (1,844,363) -0.79% -1.27%
Profit before tax 2,678,543 2,472,626 -7.69% 713,361 818,284 799,155 -2.34% 12.03%
Income tax (893,042) (719,582) -19.42% (245,307) (195,002) (213,442) 9.46% -12.99%
Profit for the year from continuing operations 1,785,501 1,753,044 -1.82% 468,054 623,282 585,713 -6.03% 25.14%
Non-controlling interest (72,402) (96,349) 33.08% (17,248) (31,566) (42,494) 34.62% 146.37%
Net income attributable to equity holders of the Parent Company 1,713,099 1,656,695 -3.29% 450,806 591,716 543,219 -8.20% 20.50%

 

16

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

BANCOLOMBIA S.A.

(Registrant)

   
Date:  November 7, 2018 By:   /s/  JAIME ALBERTO VELÁSQUEZ B.
    Name:   Jaime Alberto Velásquez B.
    Title:   Vice President of Strategy and Finance