Bancolombia S A : August 11, 2021, Bancolombia announces financial results for the second quarter of 2021.

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

OF 2021.

• The net profit for 2Q21 was COP 1.2 trillion, denoting a better performance of its clients, thanks to the support received by the bank during the pandemic. This value represents an increase of 113.2% compared to 1Q21.
• Gross loans amount to COP 204 trillion, which represents a 3.3% growth when compared to 1Q21.
• Provision charges for the quarter were COP 626 trillion and the coverage ratio for 90-day past due loans was 227,4%. Provision charges decreased by 51.1% when compared to 1Q21 and by 74.3% when compared to 2Q20. This reduction is largely due to a better economic outlook in the models for 2021, a better payment performance from clients and a fine- tuning in the provisioning methodologies for the portfolio under credit reliefs.
• The efficiency ratio was 50.4% for the last 12 months. Operating expenses for the first semester of the year increased by 2.2% when compared to the first half of 2020. Operating expenses for the quarter increased 4.4% when compared to 1Q21 and 13.7% compared to 2Q20.
• Under Basel III, Tier 1 capital stood at 11.5% as of June 30, 2021, increasing 30 basis points compared to March 31, 2021. The solvency ratio ended at 15.0%. This leverage level is adequate considering the balance sheet risks and asset growth expectations.

August 11, 2021. Medellin, Colombia - Today, BANCOLOMBIA S.A. ("Bancolombia" or "the Bank") announced its earnings results for the second quarter of 20211.

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 June 30, 2021 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, July 1, 2021 $3.748,50 = US$ 1

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BANCOLOMBIA: Summary of consolidated financial quarterlyresults

CONSOLIDATED BALANCE SHEET			Quarter		Growth
AND INCOME STATEMENT
(COP million)		2Q20	1Q21	2Q21	2Q21 / 1Q21	2Q21 / 2Q20
ASSETS
Net Loans		186,262,965	180,032,207	186,686,086	3.70%	0.23%
Investments		25,238,230	27,443,624	28,812,050	4.99%	14.16%
Other assets		56,013,085	49,849,332	49,985,866	0.27%	-10.76%
Total assets		267,514,280	257,325,163	265,484,002	3.17%	-0.76%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits		181,721,729	184,542,606	189,742,391	2.82%	4.41%
Other liabilities		57,284,007	43,576,457	45,146,599	3.60%	-21.19%
Total liabilities		239,005,736	228,119,063	234,888,990	2.97%	-1.72%
Non-controlling interest		2,035,660	1,587,798	1,590,132	0.15%	-21.89%
Shareholders' equity		26,472,884	27,618,302	29,004,880	5.02%	9.56%
Total liabilities and shareholders' equity		267,514,280	257,325,163	265,484,002	3.17%	-0.76%
Interest income		4,552,734	3,918,902	3,911,503	-0.19%	-14.08%
Interest expense		(1,651,385)	(1,093,545)	(1,065,935)	-2.52%	-35.45%
Net interest income		2,901,349	2,825,357	2,845,568	0.72%	-1.92%
Net provisions		(2,435,112)	(1,281,560)	(626,055)	-51.15%	-74.29%
Fees and income from service, net		682,717	798,693	806,703	1.00%	18.16%
Other operating income		425,722	343,607	526,421	53.20%	23.65%
Total Dividends received and equity method		44,185	78,644	54,711	-30.43%	23.82%
Total operating expense		(1,830,163)	(1,992,894)	(2,080,601)	4.40%	13.68%
Profit before tax		(211,302)	771,847	1,526,747	97.80%	-822.54%
Income tax		128,704	(206,448)	(339,389)	64.39%	-363.70%
Net income before non-controlling interest		(82,598)	565,399	1,187,358	110.00%	-1537.51%
Non-controlling interest		9,301	(22,883)	(30,443)	33.04%	-427.31%
Net income		(73,297)	542,516	1,156,915	113.25%	-1678.39%
PRINCIPAL RATIOS			Quarter		As of
	2Q20	1Q21	2Q21	2Q20	2Q21
PROFITABILITY
Net interest margin (1) from continuing operations		5.12%	5.10%	4.99%	5.36%	5.04%
Return on average total assets (2) from continuing operations		-0.11%	0.85%	1.76%	0.20%	1.31%
Return on average shareholders´ equity (3)		-1.10%	7.99%	16.33%	1.94%	12.24%
EFFICIENCY
Operating expenses to net operating income		45.14%	49.25%	49.15%	49.36%	49.20%
Operating expenses to average total assets		2.70%	3.12%	3.17%	3.10%	3.15%
Operating expenses to productive assets		3.23%	3.59%	3.65%	3.67%	3.62%
CAPITAL ADEQUACY
Shareholders' equity to total assets		9.90%	10.73%	10.93%	9.90%	10.93%
Technical capital to risk weighted assets		12.64%	14.79%	15.04%	12.64%	15.04%
KEY FINANCIAL HIGHLIGHTS
Net income per ADS from continuing operations	-	0.08	0.61	1.28	0.29	1.89
Net income per share $COP from continuing operations	-	76.21	564.05	1,202.83	273.01	1,766.88
P/BV ADS (4)		0.90	1.02	0.89	0.90	0.89
P/BV Local (5) (6)		0.87	1.00	0.88	0.87	0.88
P/E (7) from continuing operations	-	79.82	12.88	5.54	44.56	7.55
ADR price		26.31	31.99	28.80	26.31	28.80
Common share price (8)		24,000.00	28,750.00	26,400.00	24,000.00	26,400.00
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)		3,756.28	3,678.62	3,748.50	3,756.28	3,748.50

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.

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1. BALANCE SHEET

1.1. Assets

As of June 30, 2021, Bancolombia's assets totaled COP 265,484 billion, which represents a growth of 3.2% compared to 1Q21 and a decrease of 0.8% compared to 2Q20.

During the quarter, the peso depreciated 1.9% versus the US dollar and in the last 12 months it appreciated 0.2%. The average exchange rate was 1.9% higher in 2Q21 versus 1Q21.

The increase in total assets during the first quarter is largely explained by the growth in the loan book and financial assets investments.

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 = 3,748.50 COP)	2Q21	2Q21/1Q21	2Q21	2Q21/1Q21	2Q21	2Q21/1Q21	2Q21	2Q21/1Q21
Commercial loans	88,255,746	4.36%	42,427,778	2.20%	11,318,602	0.29%	130,683,524	3.65%
Consumer loans	30,108,961	1.42%	13,388,642	4.33%	3,571,733	2.39%	43,497,602	2.30%
Mortgage loans	15,257,850	3.24%	12,893,256	3.22%	3,439,577	1.30%	28,151,106	3.23%
Small business loans	675,986	-6.19%	539,186	1.09%	143,841	-0.79%	1,215,173	-3.09%
Interests paid in advance	(11,113)	12.75%	(973)	43.75%	(260)	41.07%	(12,086)	14.75%
Gross loans	134,287,431	3.50%	69,247,889	2.79%	18,473,493	0.87%	203,535,319	3.25%

In 2Q21, gross loans grew 3.3% compared to 1Q21 and 1.7% compared to 2Q20. During the last 12 months peso- denominated loans grew 3.8% and the dollar-denominated loans (expressed in USD) decreased 1.8%.

At the end of 2Q21, Banco Agricola operations in El Salvador, Banistmo in Panama and BAM in Guatemala represented 27% of total gross loans.

Gross loans denominated in currencies other than COP, generated by operations in Central America, the international operation of Bancolombia Panamá, Puerto Rico and the USD denominated loans in Colombia, accounted for 34.0% of the portfolio, and grew 2.8% in the quarter (when expressed in COP).

Total reserves (provisions in the balance sheet) for loan losses decreased 1.4% during the quarter and totaled COP 16,849 billions equivalent to 8.3% of the 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
(COP million)	2Q20	1Q21	2Q21	2Q21/1Q21	2Q21/2Q20	% of total loans
Commercial	130,543,861	126,086,144	130,683,524	3.65%	0.11%	64.2%
Consumer	41,828,151	42,518,980	43,497,602	2.30%	3.99%	21.4%
Mortgage	26,301,037	27,270,661	28,151,106	3.23%	7.03%	13.8%
Microcredit	1,368,900	1,253,912	1,215,173	-3.09%	-11.23%	0.6%
Interests received in advance	(2,649)	(10,533)	(12,086)	14.74%	356.24%	0.0%
Total loan portfolio	200,039,300	197,119,164	203,535,319	3.25%	1.75%	100.0%
Allowance for loan losses	(13,776,335)	(17,086,957)	(16,849,233)	-1.39%	22.31%
Total loans, net	186,262,965	180,032,207	186,686,086	3.70%	0.23%

1.3. Investment Portfolio

As of June 30, 2021, Bancolombia's net investment portfolio totaled COP 28,812 billion, increasing 5.0% from the end of 1Q21 and 14.2% from the end of 2Q20.

At the end of 2Q21, the debt securities portfolio had a duration of 20.1 months and a weighted average yield to maturity of 4.6%.

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1.4. Goodwill and intangibles

At the end of 2Q21, Bancolombia's goodwill and intangibles totaled COP 8,143 billion, increasing 1.6% compared to 1Q21. This quarterly variation is mainly explained by the depreciation of the COP against the USD.

1.5. Funding

As of June 30, 2021, Bancolombia's liabilities totaled COP 234,889 billion, growing 3.0% from the end of 1Q21, and decreasing 1.7% compared to 2Q20.

Customer deposits totaled COP 189,742 billion (80.8% of liabilities) at the end of 2Q21, increasing 2.8% compared to 1Q21 and 4.4% over the last 12 months. The net loans to deposits ratio was 98.4% at the end of 2Q21 increasing compared to 97.6% in 1Q21.

The bank's liquidity position continues to be favorable. During 2Q21 the lower total cost of funding indicates the high share of deposits over the total funding mix.

Funding mix	2Q20		1Q21		2Q21
COP Million
Checking accounts	29,628,682	13%	34,459,005	16%	35,593,777	16%
Saving accounts	80,173,219	36%	88,511,975	41%	93,813,194	42%
Time deposits	70,996,812	32%	59,848,463	28%	58,297,621	26%
Other deposits	1,308,322	1%	3,349,904	2%	6,554,355	3%
Long term debt	20,658,717	9%	19,816,937	9%	19,922,967	9%
Loans with banks	21,819,332	10%	10,271,006	5%	8,364,739	4%
Total Funds	224,585,084	100%	216,257,290	100%	222,546,653	100%

1.6. Shareholders' Equity and Regulatory Capital

Shareholders' equity at the end of 2Q21 was COP 29,005 billion, increasing by 5.0% compared to 1Q21 and by 9.6% when compared to 2Q20.

Bancolombia's consolidated solvency ratio under Basel III was 15.04% in 2Q21, while the basic capital ratio (Tier 1) was 11.49%. This leverage level is adequate considering the balance sheet risks and asset growth expectations.

The tangible capital ratio, defined as shareholders' equity minus goodwill and intangible assets divided by tangible assets, was 8.0% at the end of 2Q21.

The annual decrease in risk-weighted assets is mainly explained by the adoption of the new regulation.

TECHNICAL CAPITAL RISK WEIGHTED ASSETS
Consolidated (COP millions)		2Q20	%	1Q21	%	2Q21	%
Basic capital (Tier I)			20,803,346	9.35%	21,365,742	11.19%	22,638,870	11.49%
Additional capital (Tier II)		7,340,890	3.30%	6,891,518	3.60%	7,020,090	3.56%
Technical capital	(1)			28,144,236		28,242,651		29,644,922
Risk weighted assets including market and operational risk	(2)	222,581,197		190,954,243		197,104,371
CAPITAL ADEQUACY	(3)			12.64%		14.79%		15.04%

1. Technical capital is the sum of basic and additional capital, minus deductions ($14,609 million for 1Q21 and $14,039MM for 2Q21).
2. Operational risk only applies to 1Q21 and 2Q21 after the adoption of Basel III regulation.
3. Capital adequacy is technical capital divided by risk-weighted assets.

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2. INCOME STATEMENT

Net income totaled COP 1,157 billion in 2Q21, or COP 1,202.83 per share (USD $ 1.28 per ADR). This profit represents a growth of 113.2% compared to 1Q21 and a significant recovery from the net loss presented in 2Q20. Bancolombia's annualized return on equity ("ROE") was 16.3% for 2Q21 and 6.2% for the last 12 months.

2.1. Net Interest Income

Net interest income totaled COP 2,846 billion in 2Q21, 0.7% greater than the value reported in 1Q21, and 1.9% below 2Q20. During 2Q21, the investment, interest rate derivatives and repos portfolio generated COP 273 billion, 40.7% lower when compared to 1Q21.

Net Interest Margin

The annualized net interest margin decreased in 2Q21, reaching 5.0%. The annualized net interest margin for investments in 2Q21 was 0.5%. The decrease in the investment margin during the quarter was due to the lower allocation of resources in foreign currency securities and their respective exchange rate restatement. Additionally, the profitability of investments in fixed income assets and their derivatives decreased, explained by lower valuations in a scenario of expected changes in Colombian monetary policy for the upcoming months.

The annualized net interest margin of the loan portfolio was 5.7%, proving a relative stability compared to 1Q21. On an annual basis, the main factors that impact the lending margin are related to the repricing of assets as an effect of the reductions in the reference rate by the Central Bank in Colombia during the last year and, secondly, the lower revenues accrued by an increase of clients in stage 3 under IFRS 9.

Annualized Interest	2Q20	1Q21	2Q21
Margin
Loans' Interest margin	5.8%	5.7%	5.7%
Debt investments' margin	0.7%	1.7%	0.5%
Net interest margin	5.1%	5.1%	5.0%

Total funding cost continues to show a better performance during 2Q21. Savings accounts and checking accounts have increased their share over the last 12 months. Savings accounts represented 36% in 2Q20, and 42% of total funding for 2Q21. On the other hand, checking accounts represented 13% in 2Q20, and 16% of total funding in 2Q21. The annualized average weighted cost of deposits was 1.45% in 2Q21, dropping 12 basis points compared to 1Q21 and 103 basis points compared to 2Q20.

Average weighted	2Q20	1Q 21	2Q 21
funding cost
Checking accounts	0.00%	0.00%	0.00%
Saving accounts	1.60%	0.71%	0.69%
Time deposits	4.55%	3.66%	3.49%
Total deposits	2.48%	1.57%	1.45%
Long term debt	5.40%	5.02%	5.19%
Loans with banks	2.47%	2.10%	2.08%
Total funding cost	2.77%	1.94%	1.85%

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