Bancolombia S A : May 24, 2020, Bancolombia S.A . announces consolidated results for 1Q20

BANCOLOMBIA S.A. (NYSE: CIB; BVC: BCOLOMBIA, PFBCOLOM) REPORTS FINANCIAL RESULTS FOR THE

FIRST QUARTER OF 2020.

• • Regarding the current situation, Bancolombia has focused its efforts on maintaining business continuity, the safety of its employees, operating the network of channels in an efficient way and structuring lines of credit for its customers. These actions have impacted more than 2 million clients with loans that amounted more than COP 55 trillion, in Colombia.

• • Consolidated net income decreased 59.7% when compared to 1Q19. Net income for 1Q20 decreased by 28.4% when compared to 4Q19.

• • Gross loans grew 16.7% when compared to 1Q19. Peso-denominated loans grew 10.4% when compared to 1Q19. Gross loans increased by 11.9% during the quarter. Out of the annual increase 9.5% is explained by the depreciation of COP versus USD.

• • Tier 1 ratio was 9.1% on March 31, 2020 and decreased by 95 basis points when compared to March 31, 2019. The capital adequacy ratio was 12.4%.

• • The quarter closed with 5.1 million digital accounts: 2.6 million Bancolombia a la mano users and 2.5 million users in Nequi, increasing the digital footprint and banking penetration in Colombia.

  May 4, 2020. Medellin, Colombia - Today, BANCOLOMBIA S.A. ("Bancolombia" or "the Bank") announced its earnings results for the first quarter of 20201.

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 March 31, 2020 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 atwww.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, April 1, 2020 $4,054.54 = US$ 1

BANCOLOMBIA: Summary of consolidated financial quarterly results

CONSOLIDATED BALANCE SHEET

AND INCOME STATEMENT

(COP million)

ASSETS Net Loans Investments Other assets Total assets

LIABILITIES AND SHAREHOLDERS' EQUITY Deposits

Other liabilities Total liabilities Non-controlling interest Shareholders' equity

Total liabilities and shareholders' equity

Interest income

Interest expense Net interest income Net provisions

Fees and income from service, net Other operating income

Total Dividends received and equity method Total operating expense

Profit before tax Income tax

Net income before non-controlling interest Non-controlling interest

Net income

PRINCIPAL RATIOS

Quarter

1Q19

PROFITABILITY

4Q19

1Q20

Net interest margin (1) from continuing operations 5.64%

Return on average total assets (2) from continuing operations 1.50%

Return on average shareholders´ equity (3) 13.47%

5.59% 0.79% 6.93%

5.56% 0.54% 4.90%

EFFICIENCY

Operating expenses to net operating income 49.56%

Operating expenses to average total assets 3.56%

Operating expenses to productive assets 4.14%

54.91% 3.79% 4.45%

53.61% 3.48% 4.12%

CAPITAL ADEQUACY

Shareholders' equity to total assets 10.88%

Technical capital to risk weighted assets 13.28%

KEY FINANCIAL HIGHLIGHTS

Net income per ADS from continuing operations 1.09

Net income per share $COP from continuing operations 866.40

P/BV ADS (4) 1.60

P/BV Local (5) (6) 1.56

P/E (7) from continuing operations 11.55

ADR price 51.06

Common share price (8) 39,600

Weighted average of Preferred Shares outstanding USD exchange rate (quarter end)

(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.

• 1. BALANCE SHEET

1.1.

Assets

As of March 31, 2020, Bancolombia's assets totaled COP 275,762 billion, which represents an increase of 16.8% compared to 4Q19 and of 23.9% compared to 1Q19.

During the quarter, the COP depreciated 23.7% versus the USD and over the past 12 months, it depreciated 27.7%. This depreciation affected assets and liabilities, especially loans and allowances, deposits and shareholders' equity. The average exchange rate for 1Q20 was 7.7% higher than the one in 4Q19.

The increase in total assets during the year is largely explained by the growth in the loan book and cash.

1.2.

Loan Portfolio

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

(COP Million) (1 USD = 4,054.54 COP)	Amounts in COP		Amounts in USD converted to COP		Amounts in USD (thousands)		Total
	1Q20	1Q20/4Q19	1Q20	1Q20/4Q19	1Q20	1Q20/4Q19	1Q20	1Q20/4Q19
Commercial loans Consumer loans Mortgage loans Small business loans Interests paid in advance Gross loans	83,305,239 29,506,261 13,466,867 800,619 (4,025) 127,074,962	4.40% 2.99% 1.42% 4.01% -27.32% 3.75%	48,996,483 13,886,875 13,380,569 619,047 - 76,882,974	30.75% 25.05% 24.99% 21.24% 0.00% 28.58%	12,084,351 3,425,019 3,300,145 152,680 - 18,962,194	5.68% 1.07% 1.02% -2.01% 0.00% 3.92%	132,301,722 43,393,136 26,847,436 1,419,666 (4,025) 203,957,935	12.82% 9.15% 11.94% 10.88% -27.32% 11.89%

In 1Q20, gross loans increased by 11.9% when compared to 4Q19 and 16.7% when compared to 1Q19. Peso-denominated loans grew 10.4% and the dollar-denominated loans (expressed in USD) increased by 1.0% when compared to 1Q19.

As of March 31, 2020, the operations in Banco Agricola in El Salvador, Banistmo in Panama and BAM in Guatemala, represented 30% 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, Puerto Rico and the USD denominated loans in Colombia, accounted for 37.7% and increased by 28.6% during 1Q20 (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 12.7% during the quarter and totaled COP 12,316 billion, equivalent to 6.0% 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

1Q19

4Q19

1Q20

1Q20/4Q19

1Q20/1Q19

% of total loans

(COP million) Commercial Consumer Mortgage Microcredit

117,148,684

117,270,014

132,301,722

12.82%

12.93% 64.9%

33,520,835

39,754,610

43,393,136

9.15%

29.45% 21.3%

22,869,894

23,983,283

26,847,436

11.94%

17.39% 13.2%

1,203,424

1,280,373

1,419,666

10.88%

17.97% 0.7%

Interests received in advance Total loan portfolio Allowance for loan losses Total loans, net

(4,851) 174,737,986 (10,493,587) 164,244,399

(5,537) 182,282,743 (10,929,395) 171,353,348

(4,025) 203,957,935 (12,316,055) 191,641,880

-27.31% 11.89% 12.69% 11.84%

-17.04% 0.0%

16.72% 100.0%

17.37% 16.68%

1.3.

Investment Portfolio

As of March 31, 2020, Bancolombia's net investment portfolio totaled COP 18,919 billion, increasing by 12.5% from the end of 4Q19 and by 6.5% from the end of 1Q19.

At the end of 1Q20, the debt securities portfolio had a duration of 20.6 months and a weighted average yield to maturity of 5.7%.

1.4.

Goodwill and intangibles

As of 1Q20, Bancolombia's goodwill and intangibles totaled COP 8,856 billion, increasing by 22.4% compared to 4Q19. This variation is explained by the depreciation of the COP against the USD during the quarter.

1.5.

Funding

As of March 31, 2020, Bancolombia's liabilities totaled COP 246, 479 billion, increasing by 18.9% from the end of 4Q19 and by 25.5% compared to 1Q19.

Deposits by customers totaled COP 184, 216 billion (or 74.5% of liabilities) at the end of 1Q20, increasing by 17.2% when compared to 4Q19 and by 28.0% over the last 12 months. The net loans to deposits ratio was 104.0% at the end of 1Q20 decreasing when compared to 109.0% at the end of 4Q19.

Bancolombia's funding strategy during the last months has been to maintain the average life and cost 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 stable margins.

Funding mix COP Million	1Q19		4Q19		1Q20
Checking accounts Saving accounts Time deposits Other deposits Long term debt Loans with banks	22,340,529 59,253,212 61,206,938 4,153,979 19,930,388 16,572,104	12% 32% 33% 2% 11% 9%	25,159,676 66,914,834 63,635,078 2,809,461 19,921,515 15,323,022	13% 35% 33% 1% 10% 8%	32,711,508 79,142,429 71,297,168 1,250,377 23,090,151 20,873,414	14% 35% 31% 1% 10% 9%
Total Funds	183,457,150	100%	193,763,586	100%	228,365,047	100%

1.6.

Shareholders' Equity and Regulatory Capital

Shareholders' equity at the end of 1Q20 was COP 27,190 billion, increasing by 1.1% compared to 4Q19 and by 11.5% when compared to 1Q19.

Bancolombia's capital adequacy ratio was 12.42% in 1Q20, 342 basis points above the minimum 9% required by the Colombian regulator, while the basic capital ratio (Tier 1) to risk weighted assets was 9.07%, 457 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 6.7% at the end of 1Q20.

The annual increase in the RWA is mainly explained by the growth in the loan book and the depreciation of the COP against the USD.

TECHNICAL CAPITAL RISK WEIGHTED ASSETS Consolidated (COP millions)

Basic capital (Tier I) Additional capital (Tier II) Technical capital (1)

Risk weighted assets including market risk CAPITAL ADEQUACY (2)

• (1) Technical capital is the sum of basic and additional capital.

• (2) Capital adequacy is technical capital divided by risk-weighted assets.