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 February 2003
BANCOLOMBIA S.A.
----------------
(Translation of Registrant's name into English)
Calle 50 No. 51-66
Medellin, Colombia
------------------
(Address of principal executive offices)
(Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.)
Form 20-F [X] Form 40-F
(Indicate by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.)
Yes ________ No [X]
(If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82-______________.)
This Report on Form 6-K shall be incorporated by reference into the registrant's
registration statement on Form F-3 (File No. 333-12658).
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BANCOLOMBIA S.A.
(Registrant)
Date: February 28, 2003 By /s/ JAIME ALBERTO VELASQUEZ B.
--------------------------------
Name: Jaime Alberto Velasquez B.
Title: Vice President of Finance
[BANCOLOMBIA LOGO]
BANCOLOMBIA ANNOUNCES CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED
DECEMBER 31, 2002
FEBRUARY 28, 2003, MEDELLIN, COLOMBIA - Bancolombia S.A. (NYSE: CIB) announced
today the financial results for the quarter ended December 31, 2002.(1)
CONSOLIDATED INCOME STATEMENT
AND BALANCE SHEET QUARTER GROWTH
(Ps millions) 3Q 02 4Q 02 4Q02/3Q02
-----------------------------------------------------------------------------------------------------------------
ASSETS
Loans, net 5,709,724 5,880,950 3.00%
Investment Securities, net 4,207,750 4,403,045 4.64%
Other assets 1,921,552 2,155,353 12.17%
TOTAL ASSETS 11,839,026 12,439,348 5.07%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits 8,288,730 8,793,257 6.09%
Other liabilities 2,560,529 2,372,730 -7.33%
TOTAL LIABILITIES 10,849,259 11,165,987 2.92%
Shareholders' equity 989,767 1,273,361 28.65%
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 11,839,026 12,439,348 5.07%
Interest income 248,324 321,168 29.33%
Interest expense 108,145 106,325 -1.68%
NET INTEREST INCOME 140,179 214,843 53.26%
Net provisions (23,479) (24,338) 3.65%
Other operating income 98,063 86,237 -12.06%
Other operating expense (174,453) (183,879) 5.40%
Non-operating income, net 24,023 6,573 -72.64%
Income tax expense (8,712) (8,507) -2.35%
NET INCOME 55,621 90,929 63.48%
--------------------
(1) The financial information contained herein includes only the consolidated
results of Bancolombia's financial subsidiaries (Bancolombia Panama-Cayman,
Colcorp, Leasing Colombia, Almacenar, and Fiducolombia). Such information can
therefore not be compared to and should not be used in any way to interpret any
information contained in Bancolombia's annual reports on Form 20-F which contain
the consolidated financial results of the Bank and all its subsidiaries. The
information contained in this release has been prepared in accordance with
Colombian GAAP, expressed in nominal pesos, and has not been audited. All growth
rates mentioned herein are not adjusted for inflation. In this press release
"Bancolombia" or " the Bank" refers to the financial results of Bancolombia S.A
and its consolidated financial subsidiaries listed above.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This release contains statements that may be considered forward-looking
statements within the meaning of Section 27A of the U.S. Securities Act of 1933
and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking
statements, whether made in this release or in future filings or press releases
or orally, address matters that involve risks and uncertainties; consequently,
there are or will be factors, including, among others, changes in general
economic and business conditions, changes in currency exchange rates and
interest rates, introduction of competing products by other companies, lack of
acceptances of new products or services by our targeted customers, changes in
business strategy and various others factors, that could cause actual results to
differ materially from those indicated in such statements. We do not intend, and
do not assume any obligation, to update these forward-looking statements.
Exchange rate: December 31, 2002 TRM COP 2,864.79/USD
September 30, 2002 TRM COP 2,828.08/USD
CONTACTS: JAIME A. VELASQUEZ MARIA A. VILLA/ JUAN D. DIAZ FAX: (574) 2317208
FINANCIAL VP IR MANAGER www.bancolombia.com
TEL.: (574) 5108666 TEL.: (574) 5108866
1
[BANCOLOMBIA LOGO]
I. HIGHLIGHTS:
- Bancolombia's net income amounted to Ps 90.9 billion, or US$ 0.22 per
ADS, during the quarter ended December 31, 2002, as compared to a net
income of Ps 55.6 billion, or US$ 0.14 per ADS, for the quarter ended
September 30, 2002. This increase during the quarter was mainly due to
consistent development of core businesses.
- Net income for the year ended December 31, 2002, totaled Ps 221.7
billion, US$ 0.55 per ADS, as compared to Ps 146.6 billion, US$ 0.44
per ADS, ended December 31, 2001.
- Net interest income increased 53.3% quarter over quarter. This increase
was the result of higher income from investment portfolio, mainly due
to an improvement in the prices of Colombian bonds and internal debt.
As a result, net interest margin increased to 9.4% for the quarter
ended December 31, 2002, from 6.3% for the quarter ended September 30,
2002.
- Bancolombia's total fees and commissions from services amounted to Ps
81,711 million during the fourth quarter of 2002, increasing 7.04%
compared to the previous quarter with fees and commissions from credit
cards, commissions from fiduciary activities and banking services
contributing most significantly.
- Bancolombia's total operating expenses increased 7.0% to Ps 178.2
billion from Ps 166.5 billion quarter over quarter. The increase during
the quarter resulted from donations, and salary increases as a result
of the collective bargaining agreement.
- Bancolombia's ratio of past due loans to total loans for the quarter
ended December 31, 2002 decreased to 2.5% compared to 4.3% for the
quarter ended September 30, 2002 and allowances for past due loans for
the quarter ended December 31, 2002 increased to 223.98% compared to
136.14%, for the previous quarter.
- During the quarter ended December 31, 2002, the Bank's gross loans
increased 2.76% quarter over quarter.
- The annualized ROAE (Return on average shareholders' equity) and ROAA
(Return on average total assets) for the fourth quarter of 2002 were
36.2% and 3.3%, respectively, while for the year ended December 31,
2002, they were 22% and 2%, respectively.
BANKING SECTOR
The Colombian Banking Sector's results improved during the year 2002. The
Sector's aggregate results posted net income of Ps 912.8 billion as of December
31, 2002, compared to Ps 618 billion as of September 30, 2002 and Ps 648.6
billion as of December 31, 2001. (Source: Colombian Banking Superintendency)
Gross loans in the Colombian Banking Sector increased 1.7% over the quarter and
6.1% over the year. (Source: Bancolombia calculations based on data from
Colombian Banking Superintendency)
CONTACTS: JAIME A. VELASQUEZ MARIA A. VILLA/ JUAN D. DIAZ FAX: (574) 2317208
FINANCIAL VP IR MANAGER www.bancolombia.com
TEL.: (574) 5108666 TEL.: (574) 5108866
2
[BANCOLOMBIA LOGO]
The Sector's past due loan ratio improved to 9.47% as of December 31, 2002 from
10.16% as of September 30, 2002 and 10.3% as of December 31, 2001. (Source:
Colombian Banking Superintendency)
Allowances for past due loans increased to 82.8% as of December 31, 2002 from
77.8% as of September 30, 2002 and 73.4% as of December 31, 2001. (Source:
Colombian Banking Superintendency)
II. CONSOLIDATED BALANCE SHEET
ASSETS
Bancolombia's total assets increased 5.1% over the quarter to Ps 12,439 billion
as of December 31, 2002 from Ps 11,839 billion as of September 30, 2002. The
increase in total assets was primarily due to volume in investment securities
and leasing which increased 4.6% and 22.9%, respectively, over the quarter.
LOAN PORTFOLIO
Bancolombia's gross loans totaled Ps 6,213 billion as of December 31, 2002, an
increase of 2.76% from Ps 6,046 billion as of September 30, 2002. Total
corporate loans increased 11.34% during the fourth quarter of 2002 from Ps 3,828
billion as of September 30, 2002, to Ps 4,263 billion as of December 31, 2002.
Total retail loans decreased 12.36% during the fourth quarter of 2002 from Ps
2,182 billion as of September 30, 2002 to Ps 1,912 billion as of December 31,
2002. Bancolombia's loan portfolio information as of December 31, 2002 can,
however, not be compared to the information as of September 30, 2002 and
December 31, 2001, due to changes the Bank made in its classification of clients
within the portfolio loan segments: As a result of its strategy of providing
more advice and services to clients, the Bank has reclassified a number of its
loans, with the majority from "retail" to "corporate".
Bancolombia S.A.'s (unconsolidated) total loan market share in the Colombian
Financial system was 12.6% as of December 31, 2002.(Source: Bancolombia
calculations based on data from Asociacion Bancaria y de Entidades Financieras
de Colombia)
LOAN PORTFOLIO AS OF GROWTH
(Ps Millions) 31-DEC-01 30-SEP-02 31-DEC-02 4Q02/3Q02 4Q02/4Q01
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CORPORATE
Trade Financing 99,674 137,271 166,620 21.38% 67.16%
Loans funded by
domestic development banks 292,609 363,609 376,378 3.51% 28.63%
Working capital loans 3,096,578 3,293,222 3,665,698 11.31% 18.38%
Credit Cards 3,893 5,017 5,230 4.25% 34.34%
Overdrafts 15,970 29,877 49,318 65.07% 208.82%
TOTAL CORPORATE 3,508,724 3,828,996 4,263,244 11.34% 21.50%
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RETAIL
Credit Cards 231,965 229,249 254,876 11.18% 9.88%
Personal loans 459,343 500,991 561,558 12.09% 22.25%
Automobile loans 15,752 17,310 24,476 41.40% 55.38%
Overdrafts 73,372 134,383 68,490 -49.03% -6.65%
Loans funded by
domestic development banks 138,415 261,736 276,157 5.51% 99.51%
Trade Financing 38,837 58,445 28,112 -51.90% -27.62%
Working capital loans 881,327 979,794 698,478 -28.71% -20,75%
TOTAL RETAIL 1,839,011 2,181,908 1,912,147 -12.36% 3.98%
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MORTGAGE 34,340 35,584 37,883 6.46% 10.32%
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TOTAL LOANS 5,382,075 6,046,488 6,213,274 2.76% 15.44%
ALLOWANCE FOR LOAN LOSSES (271,729) (336,764) (332,324) -1.32% 22.30%
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TOTAL LOANS, NET 5,110,346 5,709,724 5,880,950 3.00% 15.08%
CONTECTS: JAIME A. VELASQUEZ MARIA A. VILLA/ JUAN D. DIAZ FAX: (574) 2317208
FINANCIAL VP IR MANAGER www.bancolombia.com
TEL.: (574) 5108666 TEL.: (574) 5108866
3
[BANCOLOMBIA LOGO]
ASSET QUALITY
As of December 31, 2002 the Bank's past due loans as a percentage of total
loans were 2.5% as compared to 4.3% as of September 30, 2002. During the
fourth quarter, Bancolombia had loan charge offs of Ps 52,969 million. The
level of allowances of the Bank's past due loans increased to 223.98% for
the fourth quarter of 2002, from 136.14% for the previous quarter.
LOAN CLASSIFICATION AS OF 31-DEC-01 AS OF 30-SEP -02 AS OF 31-DEC-02
(Ps millions)
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"A" Normal 4,259,090 79.1% 4,938,927 81.7% 5,130,674 82.6%
"B" Subnormal 604,155 11.2% 567,813 9.4% 480,603 7.7%
"C" Deficient 103,761 2.0% 88,901 1.5% 142,782 2.3%
"D" Doubtful recovery 259,810 4.8% 263,001 4.3% 180,630 2.9%
"E" Unrecoverable 155,259 2.9% 187,846 3.1% 278,585 4.5%
TOTAL 5,382,075 100% 6,046,488 100% 6,213,274 100%
LOANS CLASSIFIED AS C,D AND E
AS A PERCENTAGE OF TOTAL LOANS 9.6% 8.9% 9.7%
ASSET QUALITY AS OF GROWTH
(Ps millions) 31-DEC-01 30-SEP-02 31-DEC-02 4Q02/3Q02 4Q02/4Q01
--------------------------------------------------------------------------------------------------------- --------------------------
Total performing past due loans 61,878 37,552 40,027 6.59% -35.31%
Total nonperforming past due loans (1) 185,421 222,065 115,076 -48.18% -37.94%
Total past due loans 247,299 259,617 155,103 -40.26% -37.28%
Allowance for loans and accrued interest losses 298,740 353,430 347,398 -1.71% 16.29%
Past due loans to total loans 4.59% 4.29% 2.50%
Non performing loans to total loans 3.45% 3.67% 1.85%
C, D, and E loans to total loans 9.64% 8.93% 9.69%
Allowances to past due loans (2) 120.80% 136.14% 223.98%
Allowances to C, D and E loans (2) 57.58% 65.48% 57.71%
Allowances to non performing loans (2) 161.11% 159.16% 301.89%
Allowances to total loans 5.55% 5.85% 5.59%
Performing loans to total loans 96.55% 96.33% 98.15%
(1) Before January 1, 2002, non-performing loans were commercial and consumer
loans that were past due 90 days or more, and mortgage loans that were past
due 120 days or more. Since January 1, 2002, non-performing loans are
consumer loans that are past due 60 days or more, commercial loans that are
past due 90 days or more, and mortgage loans that are past due 120 days or
more.
(2) Allowance = allowance for loan and accrued interest losses.
LIABILITIES
Total deposits increased 6.1% over the quarter, from Ps 8,289 billion as of
September 30, 2002, to Ps 8,793 billion as of December 31, 2002. During the
fourth quarter of 2002, Bancolombia's non-interest-bearing deposits
increased 29.39%, while interest-bearing deposits increased by 0.7%. The
increase in non-interest-bearing deposits is principally a result of
Bancolombia's strategy to improve its funding structure. In addition,
liquidity is subject to seasonal changes and customarily reaches its highest
level at the end of the year.
Bancolombia S.A.'s (unconsolidated) accumulated deposit market shares in the
Colombian Financial System as of December 31, 2002 were as follows: Total
checking accounts 18%, Savings accounts 10.4% and time deposits 10.8%.
(Source: Bancolombia calculations based on data from Asociacion Bancaria y
de Entidades Financieras de Colombia)
CONTACTS: JAIME A. VELASQUEZ MARIA A. VILLA/ JUAN D. DIAZ FAX: (574) 2317208
FINANCIAL VP IR MANAGER www.bancolombia.com
TEL.: (574) 5108666 TEL.: (574) 5108866
4
[BANCOLOMBIA LOGO]
SHAREHOLDERS' EQUITY
Bancolombia's shareholders' equity increased 28.65% over the quarter from Ps 990
billion as of September 30, 2002, to Ps 1,273 billion as of December 31, 2002,
mainly due to an increase in net income and unrealized gain on securities
available for sale. As of December 31, 2002, Bancolombia's consolidated and
Bancolombia S.A.'s unconsolidated ratio of technical capital to risk-weighted
assets were 11.13% and 10.95% respectively.
TECHNICAL EQUITY RISK WEIGHTED ASSETS AS OF GROWTH
Unconsolidated (Ps millions) 31-DEC-01 30-SEP-02 31-DEC-02 4Q02/3Q02 4Q02/4Q01
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Basic capital 509,293 570,894 601,452 5.35% 18.10%
Additional capital 226,508 199,843 221,877 11.03% -2.04%
Technical capital (1) 735,801 770,737 823,330 6.82% 11.90%
Risk weighted assets 6,692,538 7,223,403 7,397,088 2.40% 10.53%
--------------------------------------------------------------------------------------------------------------------------------
CAPITAL ADEQUACY (2) 10.99% 10.67% 11.13% 4.32% 1.28%
--------------------------------------------------------------------------------------------------------------------------------
TECHNICAL EQUITY RISK WEIGHTED ASSETS AS OF GROWTH
Consolidated (Ps millions) 31-DEC-01 30-SEP-02 31-DEC-02 4Q02/3Q02 4Q02/4Q01
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Basic capital 587,497 647,799 698,046 7.76% 18.82%
Additional capital 178,636 163,736 251,970 53.89% 41.05%
Technical capital (1) 766,133 811,535 950,016 17.06% 24.00%
Risk weighted assets 7,391,905 8,477,938 8,675,868 2.33% 17.37%
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CAPITAL ADEQUACY (2) 10.36% 9.57% 10.95% 14.39% 5.65%
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(1) Technical capital is the sum of basic capital and additional capital.
(2) Capital Adequacy = Technical capital / risk weighted assets
III. INCOME STATEMENT
Bancolombia's net income amounted to Ps 90.9 billion during the quarter ended
December 31, 2002, as compared to net income of Ps 55.6 billion for the quarter
ended September 30, 2002. This increase during the fourth quarter of 2002 was
mainly due to an increase in net interest income resulting from higher income
from investment portfolio, fees and income from services.
NET INTEREST INCOME
Net interest income increased 53.3% over the quarter to Ps 215 billion for the
quarter ended December 31, 2002, compared to Ps 140 billion for the quarter
ended September 30, 2002.Total interest expenses decreased 1.68% over the
quarter, to Ps 106 billion for the quarter ended December 30, 2002, compared to
Ps 108 billion for the previous quarter, due to a 8.0% decrease in time
deposits.
PROVISIONS
Total net provisions for the fourth quarter of 2002 amounted to Ps (24,338)
million, up 3.7% when compared to Ps (23,479) million for the previous quarter,
mainly due to a slight increase in provisions for loan and accrued interest
losses.
CONTACTS: JAIME A. VELASQUEZ MARIA A. VILLA/ JUAN D. DIAZ FAX: (574) 2317208
FINANCIAL VP IR MANAGER www.bancolombia.com
TEL.: (574) 5108666 TEL.: (574) 5108866
5
[BANCOLOMBIA LOGO]
FEES AND INCOME FROM SERVICES
Total fees and income from services increased 7.04% from Ps 76.3 billion for the
quarter ended September 30, 2002, to Ps 81.7 billion for the quarter ended
December 31, 2002, with commissions from banking services and commissions and
fees from credit cards contributing significantly.
Bancolombia's accumulated credit card billing increased 16.5% over the year,
resulting in a 15.8% market share for Bancolombia. (Source: Credibanco, American
Express and Red Multicolor)
ACCUMULATED CREDIT CARD BILLING
% 2002
(As of December 31, in Ps million) 2001 2002 Growth Mkt. Share
-------------------------------------------------------------------------------------------------------------------------
Bancolombia Mastercard 637,413 717,437 12.6% 10.6%
Bancolombia VISA 283,368 341,758 20.6% 5.0%
Bancolombia American Express 13,910 0.2%
Total Bancolombia 920,781 1,059,195 16.5% 15.8%
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Colombian credit card industry 5,659,844 6,769,735 19.9% 100.0%
Source: Credibanco, American Express and Red Multicolor
CREDIT CARD MARKET SHARE
% 2002
Number of credit cards as of December 31, 2001 2002 Growth Mkt. Share
------------------------------------------------------------------------------------------------------------------------
Bancolombia Mastercard 155,395 158,969 2.3% 6.9%
Bancolombia VISA 109,169 100,069 -8.3% 4.4%
Bancolombia American Express 25,093
Total Bancolombia 264,564 259,038 7.4% 12.4%
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Colombian credit card industry 2,078,638 2,263,305 10.1% 100.0%
Source: Credibanco, American Express and Red Multicolor.
AMERICAN EXPRESS
In November 2002, Bancolombia began issuing American Express credit cards. As of
December 31, 2002 Bancolombia had issued 25,093 American Express credit cards,
thereby achieving a market share of 1.1% of the Colombian market for American
Express credit cards. Total credit card billing on American Express cards as of
December 31, 2002, was Ps 13,910 million.
OPERATING EXPENSES
Operating expenses increased 7.0% over the quarter from Ps 166.5 billion during
the quarter ended September 30, 2002, to Ps 178.2 billion during the quarter
ended December 31, 2002, mainly due to donations which accounted for an increase
of 5.4%. The Bank donated Ps 9.0 billion, principally in favor of
higher-education institutions, of which Ps 5.5 billion were tax deductible.
Salary and employee benefits increased 5.0% as a result of the collective
bargaining agreement effective November 1, 2001 which provides for a salary
increase of 7.47% (Colombian Consumer price index +1.1).
CONTECTS: JAIME A. VELASQUEZ MARIA A. VILLA/ JUAN D. DIAZ FAX: (574) 2317208
FINANCIAL VP IR MANAGER www.bancolombia.com
TEL.: (574) 5108666 TEL.: (574) 5108866
6
[BANCOLOMBIA LOGO]
During the year ended December 31, 2002 Bancolombia's efficiency ratio reached
62.7% improving from 65.9% for the year ended December 31,2001.
IV. SUBSIDIARIES
SUBSIDIARIES' BREAKDOWN
BANCOLOMBIA LEASING
As of December 31, 2002 (Ps millions) BANCOLOMBIA PANAMA COLCORP COLOMBIA ALMACENAR FIDUCOLOMBIA
-----------------------------------------------------------------------------------------------------------------------
Total assets 9,592,132 2,703,042 312,699 308,046 89,308 74,151
Total shareholders' equity 1,133,203 282,203 203,954 20,853 71,404 57,559
Net income (loss) 150,923 53,295 7,252 4,334 1,566 12,363
BANCOLOMBIA PANAMA AND ITS SUBSIDIARIES
The following table is expressed in US dollars.
BANCOLOMBIA PANAMA
INCOME STATEMENT
AND BALANCE SHEET
QUARTER GROWTH
(US$) 3Q 02 4Q 02 4Q02/3Q02
-------------------------------------------------------------------------------------------
ASSETS
Loans, net 288,799,006 312,213,710 8.11%
Investment securities, net 530,032,509 528,157,321 -0.35%
Other assets 94,465,363 119,894,564 26.92%
TOTAL ASSETS 913,296,878 960,265,595 5.14%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits 801,383,598 844,551,883 5.39%
Other liabilities 76,223,677 15,459,997 -79.72
TOTAL LIABILITIES 877,607,275 860,011,880 -2.00%
Shareholders' equity 35,689,603 100,253,715 180.90%
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 913,296,878 960,265,595 5.14%
Interest income 15,102,436 15,712,417 4.04%
Interest expense (6,180,388) (6,642,696) 7.48%
NET INTEREST INCOME 8,922,048 9,069,721 1.66%
Net provisions 1,944,878 2,954,306 51.90%
Other operating income 611,599 1,362,400 122.76%
Other operating expense (633,691) (788,635) 24.45%
NET INCOME 10,844,834 12,597,792 16.16%
Bancolombia Panama's total assets as of December 31, 2002 increased 5.14% over
the quarter from US$913 million as of September 30, 2002, to US$960 million as
of December 31, 2002. This increase was the result of higher loan volume which
increased 8.11%, from US$289 million as of September 30, 2002 to US$312 million
as of December 31, 2002. Bancolombia Panama's total liabilities decreased 2.0%
over the quarter, from US$878 million as of September 30, 2002, to US$860
million as of December 31, 2002.
Bancolombia Panama's shareholders' equity increased 180.9% over the quarter from
Ps 35.6 billion as of September 30, 2002, to Ps 100.2 billion as of December 31,
2002, mainly due to an increase in unrealized gains on securities available for
sale.
CONTACTS: JAIME A. VELASQUEZ MARIA A. VILLA/ JUAN D. DIAZ FAX: (574) 2317208
FINANCIAL VP IR MANAGER www.bancolombia.com
TEL.: (574) 5108666 TEL.: (574) 5108866
7
[BANCOLOMBIA LOGO]
Bancolombia Panama reported net income of US$ 12.6 million during the quarter
ended December 31, 2002 as compared to a net income of US$ 10.8 million for the
quarter ended September 30, 2002. This increase was a result of recovery of
provisions and higher other operating income.
V. GENERAL SHAREHOLDERS MEETING
The general shareholders' meeting of Bancolombia held in Medellin on February
27, 2003, approved the proposal made by the board of directors to distribute
profits. The Bank will pay a dividend of Ps 33/share per quarter on the first
working day of each quarter of the year (April 1, 2003; July 1, 2003; October 1,
2003, and January 2, 2004).
PRINCIPAL RATIOS
QUARTERS AS OF
4Q01 3Q02 4Q02 31-DEC-01 31-DEC-02
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PROFITABILITY
----------------------------------------------------------------------------------------------------------------------
Net interest margin (1) 7.40% 6.26% 9.38% 7.85% 7.37%
Return on average total assets (2) 0.89% 2.05% 3.32% 1.60% 2.02%
Return on average shareholders' equity (3) 7.89% 20.04% 36.17% 16.92% 22.05%
EFFICIENCY
----------------------------------------------------------------------------------------------------------------------
Operating expenses to net operating income (4) 70.00% 69.90% 59.19% 65.90% 62.66%
Operating expenses to average total assets (4) 6.52% 6.13% 6.50% 6.47% 5.94%
CAPITAL ADEQUACY
----------------------------------------------------------------------------------------------------------------------
Shareholders' equity to total assets 9.70% 8.36% 10.24% 9.70% 10.24%
Technical capital to risk weighted assets (5) 10.99% 10.78% 11.13% 10.99% 11.13%
1. Defined as Net Interest Income divided by monthly average
interest-earning assets.
2. Net income divided by monthly average total assets.
3. Net income divided by monthly average shareholders' equity.
4. Excluding merger expenses. Operating income includes net interest
income, total fees and income from services, and total other operating
income.
5. Calculated on an unconsolidated basis.
QUARTERS AS OF
STOCK INDICATORS 4Q 01 3Q 02 4Q 02 31-DEC-01 31-DEC-02
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Net Income (Ps millions) 21,699 55,621 90,929 146,592 221,699
USD Earnings per ADS 0.0652 0.140 0.224 0.441 0.546
ROAA 0.89% 2.05% 3.32% 1.60% 2.02%
ROAE 7.89% 20.04% 36.17% 16.92% 22.05%
P/BV ADS (1) 0.53 0.55 0.75 0.53 0.75
P/BV Local (2) (3) 0.60 0.99 0.78 0.60 0.78
Shares Outstanding 576,695,395 576,695,395 576,695,395 576,695,395 576,695,395
(1) Defined as ADS price divided by ADS book value.
(2) Defined as Share prices divided by share book value.
(3) Share prices on the Colombian Stock Exchange
CONTACTS: JAIME A. VELASQUEZ MARIA A. VILLA/ JUAN D. DIAZ FAX: (574) 2317208
FINANCIAL VP IR MANAGER www.bancolombia.com
TEL.: (574) 5108666 TEL.: (574) 5108866
8
[BANCOLOMBIA LOGO]
CONSOLIDATED BALANCE SHEET AS OF GROWTH
(Ps millions) 31-DEC-01 30-SEP-02 31-DEC-02 4Q02/3Q02 4Q02/4Q01
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ASSETS
Cash and due from banks 535,849 578,570 642,606 11.07% 19.92%
Overnight funds 176,666 96,667 207,683 114.84% 17.56%
TOTAL CASH AND EQUIVALENTS 712,515 675,237 850,289 25.92% 19.34%
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DEBT SECURITIES
Trading 2,792,779 1,715,973 1,588,815 -7.41% -43.11%
Available for Sale - 1,525,533 1,887,514 23.73% -
Held to Maturity 1,987 590,775 607,645 2.86% 30481.03%
EQUITY SECURITIES
Trading 269,371 142,541 83,487 -41.43% -69.01
Available for Sale - 296,907 306,358 3.18% -
Market value allowance (29,786) (63,979) (70,774) 10.62% 137.61%
NET INVESTMENT SECURITIES 3,034,350 4,207,750 4,403,045 4.64% 45.11%
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Gross Loans 5,382,075 6,046,488 6,213,274 2.76% 15.44%
Allowance for loan losses (271,729) (336,764) (332,324) -1.32% 22.30%
NET TOTAL LOANS 5,110,346 5,709,724 5,880,950 3.00% 15.08%
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Accrued interest receivable on loans 104,727 100,523 98,556 -1.96% -5.89%
Allowance for accrued interest losses (27,011) (16,666) (15,074) -9.55% -44.19%
NET TOTAL INTEREST ACCRUED 77,716 83,857 83,482 -0.45% 7.42%
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Customers' acceptances 39,907 1,225 (15,662) -1378.53% -139.25%
Net accounts receivable 72,356 90,588 112,122 23.77% 54.96%
Net premises and equipment 260,680 254,329 265,918 4.56% 2.01%
Foreclosed assets 57,001 50,582 46,002 -9.05% -19.30%
Prepaid expenses and deferred charges 63,570 60,690 49,727 -18.06% -21.78%
Good will 141,552 124,566 118,904 -4.55% -16.00%
Net lease 245,815 310,825 382,242 22.98% 55.50%
Other 112,421 71,799 65,072 -9.37% -42.12%
Reappraisal of assets 248,251 197,854 197,257 -0.30% -20.54%
TOTAL ASSETS 10,176,480 11,839,026 12,439,348 5.07% 22.24%
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
DEPOSITS
NON-INTEREST BEARING 1,777,650 1,567,048 2,027,618 29.39% 14.06%
Checking accounts 1,710,960 1,464,528 1,933,045 31.99% 12.98%
Other 66,690 102,520 94,573 -7.75% 41.81%
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INTEREST BEARING 5,807,807 6,721,682 6,765,639 0.65% 16.49%
Checking accounts 608,602 703,880 758,563 7.77% 24.64%
Time deposits 3,429,336 3,515,817 3,606,848 2.59% 5.18%
Savings deposits 1,769,869 2,501,985 2,400,228 -4.07% 35.62%
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TOTAL DEPOSITS 7,585,457 8,288,730 8,793,257 6.09% 15.92%
Overnight funds 202,994 713,567 603,296 -15.45% 197.20%
Bank acceptances outstanding 31,066 31,686 31,050 -2.01% -0.05%
Interbank borrowings 399,595 594,810 403,962 -32.09% 1.09%
Borrowings from domestic development banks 388,196 500,189 688,687 37.69% 77.41%
Accounts payable 337,011 478,940 398,038 -16.89% 18.11%
Other liabilities 123,914 142,944 161,639 13.08% 30.44%
Bonds 8,523 2,221 27,782 1150.88% 225.97%
Accrued expenses 89,472 82,955 44,487 -46.37% -50.28%
Minority interest in consolidated subsidiaries 22,842 13,217 13,789 4.33% -39.63%
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TOTAL LIABILITIES 9,189,070 10,849,259 11,165,987 2.92% 21.51%
Shareholders' equity 987,410 989,767 1,273,361 28.65% 28.96%
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 10,176,480 11,839,026 12,439,348 5.07% 22.24%
CONTACTS: JAIME A. VELASQUEZ MARIA A. VILLA/ JUAN D. DIAZ FAX: (574) 2317208
FINANCIAL VP IR MANAGER www.bancolombia.com
TEL.: (574) 5108666 TEL.: (574) 5108866
9
[BANCOLOMBIA LOGO]
CONSOLIDATED INCOME STATEMENT AS OF QUARTER
(Ps Millions) 31-DEC-01 31-DEC-02 4Q 01 3Q 02 4Q 02
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INTEREST INCOME AND EXPENSES
Interest on loans 814,728 718,435 202,809 176,903 168,320
Interest on investment securities 243,528 370,383 58,436 61,316 139,686
Overnight funds 26,970 9,012 6,534 738 2,212
Leasing 35,437 39,603 9,286 9,367 10,950
TOTAL INTEREST INCOME 1,120,663 1,137,433 277,065 248,324 321,168
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Interest expense
Time deposits 326,413 273,397 82,330 63,068 58,017
Savings deposits 113,239 107,107 27,200 25,633 27,015
TOTAL INTEREST ON DEPOSITS 439,652 380,504 109,530 88,701 85,032
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Interbank borrowings 26,976 9,404 1,530 3,505 995
Borrowings from domestic development banks 35,676 44,634 9,917 11,069 12,070
Overnight funds 28,249 27,481 10,750 4,870 8,228
TOTAL INTEREST EXPENSE 530,553 462,023 131,727 108,145 106,325
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NET INTEREST INCOME 590,110 675,410 145,338 140,179 214,843
Provision for loan and accrued interest losses (348,303) (206,623) (114,379) (27,547) (33,989)
Provision for foreclosed assets and other assets (63,788) (71,531) (17,166) (19,076) (13,946)
Recovery of provisions for foreclosed assets and
other assets - 32,886 - 4,707 8,539
Recovery of provisions for past due loans and accrued
interest losses 254,751 91,798 84,097 9,825 9,681
Recovery of charged-off loans 20,411 25,609 4,248 8,612 5,377
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TOTAL NET PROVISIONS (136,929) (127,861) (43,202) (23,479) (24,338)
NET INTEREST INCOME AFTER PROVISION FOR LOANS
AND ACCRUED INTEREST LOSSES 453,181 547,549 102,136 116,700 190,505
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Commissions from banking services 83,157 104,080 22,656 27,408 29,583
Credit card merchant fees 39,662 44,117 10,975 11,198 13,078
Credit and debit card annual fees 39,960 48,991 10,550 12,555 12,569
Checking fees 37,674 40,972 9,507 10,353 10,415
Warehouse services 32,668 38,879 8,547 9,850 9,869
Commissions-fees from fiduciary activities 27,101 35,290 7,517 8,261 9,709
Check remittance 23,493 20,473 6,014 4,985 5,350
International operations 20,171 22,402 5,294 6,166 6,462
TOTAL FEES AND OTHER SERVICE INCOME 303,886 355,204 81,060 90,776 97,035
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Fees and other service expenses (51,303) (55,581) (13,449) (14,439) (15,324)
TOTAL FEES AND INCOME FROM SERVICES 252,583 299,623 67,611 76,337 81,711
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OTHER OPERATING INCOME
Net foreign exchange gains 22,473 91,164 (394) 39,919 20,373
Dividend income 8,050 28,089 301 12,976 3,698
Forward contracts in foreign currency 17,063 (62,612) 11,912 (33,265) (21,867)
Communication, postage and others 8,751 8,543 2,425 2,096 2,322
TOTAL OTHER OPERATING INCOME 56,337 65,184 14,244 21,726 4,526
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TOTAL INCOME 762,101 912,356 183,991 214,763 276,742
OPERATING EXPENSES
Salaries and employee benefits 246,005 277,267 62,523 69,189 72,664
Compensation 23,176 24,242 6,822 6,490 5,894
Administrative and other expenses 287,070 308,719 77,889 82,720 81,825
Donation expenses 4,280 9,411 3,969 12 9,004
Depreciation 31,898 32,129 7,827 8,123 8,830
TOTAL OPERATING EXPENSES 592,429 651,768 159,030 166,534 178,217
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NET OPERATING INCOME 169,672 260,588 24,961 48,229 98,525
Merger expenses 42,208 33,028 10,101 7,919 5,662
NON-OPERATING INCOME (EXPENSE)
Other income 70,950 34,036 21,942 12,918 9,964
Minority interest (1,243) 15,139 (369) 16,369 (80)
Reimbursement by loan portfolio purchasing 5,357 - 5,357 - -
Recovery of deposit security - 2,421 - - -
Other expense (30,505) (23,213) (20,530) (5,264) (3,311)
TOTAL NON-OPERATING INCOME 44,559 28,383 6,400 24,023 6,573
INCOME BEFORE INCOME TAXES 172,023 255,943 21,260 64,333 99,436
Income tax expense (25,431) (34,244) 439 (8,712) (8,507)
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NET INCOME 146,592 221,699 21,699 55,621 90,929
CONSOLIDATED INCOME STATEMENT GROWTH
(Ps Millions) 4Q 02/3Q 02 4Q 02/4Q 01
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INTEREST INCOME AND EXPENSES
Interest on loans -4.85% -17.01%
Interest on investment securities 127.81% 139.04%
Overnight funds 199.73% -66.15%
Leasing 16.90% 17.92%
TOTAL INTEREST INCOME 29.33% 15.92%
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Interest expense
Time deposits -8.01% -29.53%
Savings deposits 5.39% -0.68%
TOTAL INTEREST ON DEPOSITS -4.14% -22.37%
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Interbank borrowings -71.61% -34.97%
Borrowings from domestic development banks 9.04% 21.71%
Overnight funds 68.95% -23.46%
TOTAL INTEREST EXPENSE -1.68 -19.28%
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NET INTEREST INCOME 53.26% 47.82%
Provision for loan and accrued interest losses 23.39% -70.28%
Provision for foreclosed assets and other assets -26.89% -18.76%
Recovery of provisions for foreclosed assets and
other assets 81.41% 0.00%
Recovery of provisions for past due loans and accrued
interest losses -1.47 -88.49%
Recovery of charged-off loans -37.56% 26.58%
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TOTAL NET PROVISIONS 3.66% -43.66%
NET INTEREST INCOME AFTER PROVISION FOR LOANS
AND ACCRUED INTEREST LOSSES 63.24% 86.52%
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Commissions from banking services 7.94% 30.57%
Credit card merchant fees 16.79% 19.16%
Credit and debit card annual fees 0.11% 19.14%
Checking fees 0.60% 9.55%
Warehouse services 0.19% 15.47%
Commissions-fees from fiduciary activities 17.53% 29.16%
Check remittance 7.32% -11.04%
International operations 4.80% 22.06%
TOTAL FEES AND OTHER SERVICE INCOME 6.89% 19.71%
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Fees and other service expenses 6.13% 13.94%
TOTAL FEES AND INCOME FROM SERVICES 7.04% 20.85%
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OTHER OPERATING INCOME
Net foreign exchange gains -48.96% -5270.81%
Dividend income -71.50% 1128.57%
Forward contracts in foreign currency -34,26% -283.57%
Communication, postage and others 10.78% -4.25%
TOTAL OTHER OPERATING INCOME -79.17% -68.23%
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TOTAL INCOME 28.86% 50.41%
OPERATING EXPENSES
Salaries and employee benefits 5.02% 16.22%
Compensation -9.18% -13.60%
Administrative and other expenses -1.08% 5.05%
Donation expenses 74933.33% 126.86%
Depreciation 8.70% 12.81%
TOTAL OPERATING EXPENSES 7.02% 12.07%
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NET OPERATING INCOME 104.29% 294.72%
Merger expenses -28.50% -43.95%
NON-OPERATING INCOME (EXPENSE)
Other income -22.87% -54.59%
Minority interest -100.49% -78.32%
Reimbursement by loan portfolio purchasing 0.00% -100.00%
Recovery of deposit security 0.00% 100.00%
Other expense -37.10% -83.87%
TOTAL NON-OPERATING INCOME -72.64% 2.71%
INCOME BEFORE INCOME TAXES 54.56% 367.72%
Income tax expense -2.35% -2037.81%
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NET INCOME 63.48% 319.05%
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CONTACTS: JAIME A. VELASQUEZ MARIA A. VILLA/ JUAN D. DIAZ FAX: (574) 2317208
FINANCIAL VP IR MANAGER www.bancolombia.com
TEL.: (574) 5108666 TEL.: (574) 5108866
10