Bancolombia S A : February 24, 2021, Bancolombia S.A. announces consolidated results for 4Q20.

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

FOURTH QUARTER OF 2020.

• • Net income for 2020 was COP 276 billion. Net income as of December 31, 2020 was lower by 91.1% when compared to the one in 2019. Net loss for the quarter was COP 266 billion.

• • Bancolombia decided to anticipate the adoption of Basel III standards in 4Q20. Under Basel III the solvency ratio stood at 14.7% and 11.2% for Tier 1 capital. Both ratios are well above the minimum regulatory levels required in Colombia.

• • Gross loans amount to COP 191 trillion. Loans grew 5.0% when compared to 4Q19 and decreased by 3.7% during the quarter. Peso-denominated loans grew 5.8% when compared to 4Q19.

• • Provision charges for the quarter were COP 2.0 trillion and the coverage ratio for 90-day past due loans was 213.2%.

  Provision charges increased by 20.4% when compared to 3Q20 and by 79.4% when compared to 4Q19. This level of provisions was largely explained by the deterioration of the consumer portfolio, COVID-19 and the update of macroeconomic variables in our expected losses models.

• • The efficiency was 50.5% for the last 12 months. Operating expenses increased by 7.4% when compared to 3Q20 and decreased by 8.0% when compared to 4Q19.

• • Bancolombia continues to strengthen its digital strategy with a robust growth in its mobile platforms. As of December 31, 2020, the bank has 9.4 million digital accounts, 4.6 million users in Bancolombia a la Mano and 4.8 million in Nequi.

• • Shift of sales to digital channels continues to grow. During 2020, Bancolombia managed to distribute more than 3 million products through its web and mobile platforms, which represents 44% of the total sales completed in all channels.

  February 24, 2021. Medellin, Colombia - Today, BANCOLOMBIA S.A. ("Bancolombia" or "the Bank") announced its earnings results for the fourth 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 December 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, January 1, 2021 $3,432.50 = US$ 1

BANCOLOMBIA: Summary of consolidated financial quarterly results

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

-132,09% -93,31%

-151,81%51,13%

-156,74%

-18,30%

-21,12%

-21,16% -21,10%

15,02%

79,37%

73,51%

15,94%

-6,88%

-1,26%

-8,03%

9,73%

2,20%

8,25%

PRINCIPAL RATIOS

PROFITABILITY

Net interest margin (1) from continuing operations

Return on average total assets (2) from continuing operations Return on average shareholders´ equity (3)

EFFICIENCY

Operating expenses to net operating income Operating expenses to average total assets Operating expenses to productive assets CAPITAL ADEQUACY

Shareholders' equity to total assets Technical capital to risk weighted assets KEY FINANCIAL HIGHLIGHTS

Net income per ADS from continuing operations

Net income per share $COP from continuing operations P/BV ADS (4)

P/BV Local (5) (6)

P/E (7) from continuing operations ADR price

Common share price (8)

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 December 31, 2020, Bancolombia's assets totaled COP 255,569 billion, which represents a decrease of 3.8% compared to 3Q20 and an increase of 8.3% compared to 4Q19.

During the quarter, the COP appreciated 11.2% versus the USD and over the past 12 months, it depreciated 4.7%. The average exchange rate for 4Q20 was 0.3% lower than that of 3Q20.

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

1.2.

Loan Portfolio

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

(COP Million)
(1 USD = 3,432.50 COP)	4Q20	4Q20/3Q20	4Q20	4Q20/3Q20	4Q20	4Q20/3Q20	4Q20	4Q20/3Q20
Commercial loans	84,984,612	-0.16%	38,147,366	-12.90%	11,113,581	-1.91%	123,131,979	-4.49%
Consumer loans	29,417,662	2.73%	11,681,075	-9.67%	3,403,081	1.72%	41,098,737	-1.13%
Mortgage loans	14,460,512	2.85%	11,498,600	-11.03%	3,349,920	0.19%	25,959,112	-3.80%
Small business loans	734,821	-1.44%	497,927	-14.56%	145,062	-3.78%	1,232,748	-7.20%
Interests paid in advance	(12,339)	-6.88%	(507)	425.58%	(148)	491.87%	(12,846)	-3.75%
Gross loans	129,585,269	0.81%	61,824,461	-11.98%	18,011,496	-0.87%	191,409,730	-3.71%

Amounts in COP

Amounts in USD converted to COP

Amounts in USD (thousands)

Total

In 4Q20, gross loans decreased by 3.7% when compared to 3Q20 and increased by 5.0% when compared to 4Q19. During the last twelve months peso-denominated loans grew 5.8% and the dollar-denominated loans (expressed in USD) decreased by 1.3%.

As of December 31, 2020, the operations in Banco Agricola in El Salvador, Banistmo in Panama and BAM in Guatemala, represented 26% 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 32.3% and decreased by 12.0% during 4Q20 (when expressed in COP).

Total reserves (allowances in the balance sheet) for loan losses increased by 9.9% during the quarter and totaled COP 16,616 billion, equivalent to 8.7% 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

4Q19

3Q20

4Q20

4Q20/4Q19

% of total loans

(COP million) Commercial Consumer Mortgage Microcredit

117,270,014

128,917,692

123,131,979

39,754,610

41,566,548

41,098,737

23,983,283

26,983,752

25,959,112

1,280,373

1,328,348

1,232,748

4Q20/3Q20 -4.49% -1.13% -3.80% -7.20%

5.00% 64.3%

3.38% 21.5%

8.24% 13.6%

-3.72% 0.6%

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

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

(13,347) 198,782,993 (15,113,745) 183,669,248

(12,846) 191,409,730 (16,616,043) 174,793,687

-3.75% 131.99% 0.0%

-3.71% 9.94% -4.83%

5.01% 100.0%

52.03% 2.01%

1.3.

Investment Portfolio

As of December 31, 2020, Bancolombia's net investment portfolio totaled COP 29,553 billion, increasing by 6.6% from the end of 3Q20 and by 75.7% from the end of 4Q19.

At the end of 4Q20, the debt securities portfolio had a duration of 18.1 months and a weighted average yield to maturity of 3.2%.

1.4.

Goodwill and intangibles

As of 4Q20, Bancolombia's goodwill and intangibles totaled COP 7,507 billion, decreasing by 10.9% compared to 3Q20. This variation is explained by the appreciation of the COP against the USD during the quarter.

1.5.

Funding

As of December 31, 2020, Bancolombia's liabilities totaled COP 227,453 billion, decreasing by 3.7% from the end of 3Q20 and increasing by 9.7% compared to 4Q19.

Deposits by customers totaled COP 180,821 billion (or 79.5% of liabilities) at the end of 4Q20, decreasing by 1.5% when compared to 3Q20 and increasing by 15.0% over the last 12 months. The net loans to deposits ratio was 96.7% at the end of 4Q20 decreasing when compared to 100.0% at the end of 3Q20.

Bancolombia's liquidity position continues to be adequate. During 4Q20 total funding cost indicates the undertaken efforts to sustain a high share of deposits over the total funding mix.

Funding mix COP Million	4Q19	3Q20	4Q20
Checking accounts Saving accounts Time deposits Other deposits Long term debt Loans with banks	25,159,676 66,914,834 63,635,078 2,809,461 19,921,515 15,323,022	13% 35% 33% 1% 10% 8%	31,271,133 79,265,987 71,386,752 3,436,279 21,165,855 15,740,786	14% 36% 32% 2% 10% 7%	31,894,229 86,147,655 61,083,519 3,911,553 19,126,593 11,964,700	15% 40% 29% 2% 9% 6%
Total Funds	193,763,586	100%	222,266,792	100%	214,128,249	100%

1.6.

Shareholders' Equity and Regulatory Capital

As of December 31, 2020, Bancolombia anticipated the adoption of Basel III standards to report solvency ratios. This process was completed in two stages. First, by performing an accounting reclassification of occasional reversals into legal reserves, approved last July by the extraordinary shareholders' meeting.

Secondly during the last quarter of the year, adopting the rest of the regulatory changes, such as the calculation of risk-weighted assets, goodwill deductions, and the inclusion of operational risk, among others.

Shareholders' equity at the end of 4Q20 was COP 26,545 billion, decreasing by 5.2% compared to 3Q20 and by 1.3% when compared to 4Q19.

Bancolombia's consolidated solvency ratio under Basel III was 14.74% in 4Q20, while the basic capital ratio

(Tier 1) was 11.24%. These levels are above the minimum regulatory levels required under the new regulation in Colombia, which provides a period of 4 years to comply with a minimum of 11.5% of total solvency and 6.0% of basic capital.