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

2021.

  • Gross loans amount to COP 197 trillion, which represents a 3.0% growth when compared to 4Q20.
  • Provision charges for the quarter were COP 1.3 trillion and the coverage ratio for 90-day past due loans was 221,8%. Provision charges decreased by 36.8% when compared to 4Q20 and by 7.2% when compared to 1Q20. This level of provisions was largely explained by the deterioration in customer credit ratings due to COVID-19in our expected losses models.
  • The efficiency was 49.4% for the last 12 months. Operating expenses decreased by 4.1% when compared to 4Q20 and 7.5% when compared to 1Q20.
  • Under Basel III Tier 1 basic capital stood at 11.2% as of March 31, 2021 decreasing 5 basis points with respect to December 31, 2020. The solvency ratio ended at 14.8%. Both ratios are well above the minimum regulatory levels required in Colombia.
  • Bancolombia continues to strengthen its digital strategy with a robust growth in its mobile platform users. As of March 31, 2020, the bank has 10.8 million digital accounts, 5.8 million users in Nequi and 5.0 million in Bancolombia a la Mano.

May 4, 2021. Medellin, Colombia - Today, BANCOLOMBIA S.A. ("Bancolombia" or "the Bank") announced its earnings results for the first 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 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 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, April 1, 2021 $3.678,62 = US$ 1

1

BANCOLOMBIA: Summary of consolidated financial quarterly results

CONSOLIDATED BALANCE SHEET

Quarter

Growth

AND INCOME STATEMENT

(COP million)

1Q20

4Q 20

1Q21

1Q21/4Q20

1Q21/1Q20

ASSETS

Net Loans

191,641,880

174,793,687

180,032,207

3.00%

-6.06%

Investments

18,918,763

29,553,003

27,443,624

-7.14%

45.06%

Other assets

65,201,377

51,221,815

49,849,332

-2.68%

-23.55%

Total assets

275,762,020

255,568,505

257,325,163

0.69%

-6.69%

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

184,215,627

180,820,793

184,542,606

2.06%

0.18%

Other liabilities

62,262,956

46,632,499

43,576,457

-6.55%

-30.01%

Total liabilities

246,478,583

227,453,292

228,119,063

0.29%

-7.45%

Non-controlling interest

2,093,386

1,569,984

1,587,798

1.13%

-24.15%

Shareholders' equity

27,190,051

26,545,229

27,618,302

4.04%

1.58%

Total liabilities and shareholders' equity

275,762,020

255,568,505

257,325,163

0.69%

-6.69%

Interest income

4,440,555

3,482,167

3,918,902

12.54%

-11.75%

Interest expense

(1,528,094)

(1,239,521)

(1,093,545)

-11.78%

-28.44%

Net interest income

2,912,461

2,242,646

2,825,357

25.98%

-2.99%

Net provisions

(1,381,650)

(2,026,279)

(1,281,560)

-36.75%

-7.24%

Fees and income from service, net

795,929

793,827

798,693

0.61%

0.35%

Other operating income

344,500

786,911

343,607

-56.33%

-0.26%

Total Dividends received and equity method

(34,053)

47,417

78,644

65.86%

-330.95%

Total operating expense

(2,154,514)

(2,077,206)

(1,992,894)

-4.06%

-7.50%

Profit before tax

482,673

(232,684)

771,847

-431.71%

59.91%

Income tax

(116,651)

(16,349)

(206,448)

1162.76%

76.98%

Net income before non-controlling interest

366,022

(249,033)

565,399

-327.04%

54.47%

Non-controlling interest

(30,138)

(17,199)

(22,883)

33.05%

-24.07%

Net income

335,884

(266,232)

542,516

-303.78%

61.52%

PRINCIPAL RATIOS

Quarter

As of

1Q20

4Q 20

1Q21

1Q20

1Q21

PROFITABILITY

Net interest margin (1) from continuing operations

5.56%

3.99%

5.10%

5.56%

5.10%

Return on average total assets (2) from continuing operations

0.54%

-0.41%

0.85%

0.54%

0.85%

Return on average shareholders´ equity (3)

4.90%

-3.88%

7.99%

4.90%

7.99%

EFFICIENCY

Operating expenses to net operating income

53.61%

53.66%

49.25%

53.61%

49.25%

Operating expenses to average total assets

3.48%

3.18%

3.12%

3.48%

3.12%

Operating expenses to productive assets

4.12%

3.69%

3.59%

4.12%

3.59%

CAPITAL ADEQUACY

Shareholders' equity to total assets

9.86%

10.39%

10.73%

9.86%

10.73%

Technical capital to risk weighted assets

12.42%

14.74%

14.79%

12.42%

14.79%

KEY FINANCIAL HIGHLIGHTS

Net income per ADS from continuing operations

0.34

-

0.32

0.61

0.34

0.61

Net income per share $COP from continuing operations

349.21

-

276.80

564.05

349.21

564.05

P/BV ADS (4)

0.89

1.25

1.02

0.89

1.02

P/BV Local (5) (6)

0.85

1.27

1.00

0.85

1.00

P/E (7) from continuing operations

17.66

-

31.38

12.88

17.66

12.88

ADR price

24.96

40.18

31.99

24.96

31.99

Common share price (8)

24,100

34,980

28,750

24,100

28,750

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)

4,054.54

3,432.50

3,678.62

4,054.54

3,678.62

  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

1. BALANCE SHEET

1.1. Assets

As of March 31, 2021, Bancolombia's assets totaled COP 257,325 billion, which represents an increase of 0.7% compared to 4Q20 and a decrease of 6.7% compared to 1Q20.

During the quarter, the COP depreciated 7.2% versus the USD and over the past 12 months, it appreciated 9.3%. The average exchange rate for 1Q21 was 3.6% lower than that of 4Q20.

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

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 = 3,678.62 COP)

1Q21

1Q21/4Q20

1Q21

1Q21/4Q20

1Q21

1Q21/4Q20

1Q21

1Q21/4Q20

Commercial loans

84,571,088

-0.49%

41,515,056

8.83%

11,285,497

1.55%

126,086,144

2.40%

Consumer loans

29,686,116

0.91%

12,832,864

9.86%

3,488,500

2.51%

42,518,980

3.46%

Mortgage loans

14,779,675

2.21%

12,490,985

8.63%

3,395,563

1.36%

27,270,661

5.05%

Small business loans

720,554

-1.94%

533,358

7.12%

144,989

-0.05%

1,253,912

1.72%

Interests paid in advance

(9,856)

-20.13%

(677)

33.58%

(184)

24.64%

(10,533)

-18.01%

Gross loans

129,747,578

0.13%

67,371,586

8.97%

18,314,364

1.68%

197,119,164

2.98%

In 1Q21, gross loans increased by 3.0% when compared to 4Q20 and decreased by 3.4% when compared to 1Q20. During the last twelve months peso-denominated loans grew 2.1% and the dollar-denominated loans (expressed in USD) decreased by 3.4%.

As of March 31, 2021, the operations in Banco Agricola in El Salvador, Banistmo in Panama and BAM in Guatemala, represented 28% of total gross loans.

Gross loans denominated in currencies other than COP, originated by the operations in Central America, the international operation of Bancolombia Panama, Puerto Rico and the USD denominated loans in Colombia, accounted for 34.2% and increased by 9.0% during 1Q21 (when expressed in COP).

Total reserves (allowances in the balance sheet) for loan losses increased by 2.8% during the quarter and totaled COP 17,087 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

(COP million)

1Q20

4Q20

1Q21

1Q21/4Q20

1Q21/1Q20

% of total loans

Commercial

132,301,722

123,131,979

126,086,144

2.40%

-4.70%

64.0%

Consumer

43,393,136

41,098,737

42,518,980

3.46%

-2.01%

21.6%

Mortgage

26,847,436

25,959,112

27,270,661

5.05%

1.58%

13.8%

Microcredit

1,419,666

1,232,748

1,253,912

1.72%

-11.68%

0.6%

Interests received in advance

(4,025)

(12,846)

(10,533)

-18.01%

161.69%

0.0%

Total loan portfolio

203,957,935

191,409,730

197,119,164

2.98%

-3.4%

100.0%

Allowance for loan losses

(12,316,055)

(16,616,043)

(17,086,957)

2.83%

38.74%

Total loans, net

191,641,880

174,793,687

180,032,207

3.00%

-6.06%

1.3. Investment Portfolio

As of March 31, 2021, Bancolombia's net investment portfolio totaled COP 27,444 billion, decreasing by 7.1% from the end of 4Q20 and increasing by 45.1% from the end of 1Q20.

3

At the end of 1Q21, the debt securities portfolio had a duration of 19.0 months and a weighted average yield to maturity of 3.6%.

1.4. Goodwill and intangibles

As of 1Q21, Bancolombia's goodwill and intangibles totaled COP 8,013 billion, increasing by 6.7% compared to 4Q20. This variation is explained by the depreciation of the COP against the USD during the quarter.

1.5. Funding

As of March 31, 2021, Bancolombia's liabilities totaled COP 228,119 billion, increasing by 0.3% from the end of 4Q20 and decreasing by 7.4% compared to 1Q20.

Deposits by customers totaled COP 184,543 billion (or 80.9% of liabilities) at the end of 1Q21, increasing by 2.1% when compared to 4Q20 and increasing by 0.2% over the last 12 months. The net loans to deposits ratio was 97.6% at the end of 1Q21 increasing when compared to 96.7% at the end of 4Q20.

Bancolombia's liquidity position continues to be adequate. During 1Q21 the lower total funding cost reflects the higher share of deposits over the total funding mix.

Funding mix

1Q20

4Q20

1Q21

COP Million

Checking accounts

32,711,508

14%

31,894,229

15%

34,459,005

16%

Saving accounts

79,143,787

35%

86,147,655

40%

88,511,975

41%

Time deposits

71,295,810

31%

61,083,519

29%

59,848,463

28%

Other deposits

1,250,377

1%

3,911,553

2%

3,349,904

2%

Long term debt

23,090,151

10%

19,126,593

9%

19,816,937

9%

Loans with banks

20,873,414

9%

11,964,700

6%

10,271,006

5%

Total Funds

228,365,047

100%

214,128,249

100%

216,257,290

100%

1.6. Shareholders' Equity and Regulatory Capital

Shareholders' equity at the end of 1Q21 was COP 27,618 billion, increasing by 4.0% compared to 4Q20 and by 1.6% when compared to 1Q20.

Bancolombia's consolidated solvency ratio under Basel III was 14.79% in 1Q21, while the basic capital ratio (Tier 1) was 11.19%. 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.

The tangible capital ratio, defined as shareholders' equity minus goodwill and intangible assets divided by tangible assets, was 7.7% at the end of 1Q21.

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)

1Q20

%

4Q20

%

1Q21

%

Basic capital (Tier I)

21,424,148

9.07%

20,824,348

11.24%

21,365,742

11.19%

Additional capital (Tier II)

7,914,711

3.35%

6,494,242

3.50%

6,891,518

3.60%

Technical capital (1)

29,338,859

27,318,590

28,242,651

Risk weighted assets including market and operational risk (2)

236,198,851

185,215,575

190,954,243

CAPITAL ADEQUACY (3)

12.42%

14.74%

14.79%

  1. Technical capital is the sum of basic and additional capital, minus deductions (14,609 million for 1Q21).
  2. Operational risk only applies to 4Q20 and 1Q21 after the adoption of Basel III regulation.
  3. Capital adequacy is technical capital divided by risk-weighted assets.

4

2. INCOME STATEMENT

Net income totaled COP 543 billion in 1Q21, or COP 564.05 per share USD 0.61 per ADR. This profit represents a better result compared to the losses presented in the previous quarter and a growth of 61.5% compared to 1Q20. Bancolombia's annualized ROE for 1Q21 was 8.0% and 1.8% for the last twelve months.

2.1. Net Interest Income

Net interest income totaled COP 2,825 billion in 1Q21, 26.0% more than the one reported in 4Q20, and 3.0% below the figure of 1Q20.

During 1Q21, the investment, interest rate derivatives and repos portfolio generated COP 273 billion, which is 193.8% higher than the value generated in 1Q20 mainly explained by the derivatives book performance during the quarter. Despite an adverse scenario in the capital markets, investments leveraged by derivatives obtained significant income with low capital consumption.

Net Interest Margin

The annualized net interest margin increased to 5.1% during 1Q21. The annualized net interest margin for investments was 1.7%. The positive result of the first quarter in investments is explained by the execution of strategies on the derivatives portfolio, offsetting the negative results of the public and private debt books, as a result of the devaluation in fixed income globally. The annualized net interest margin of the loan portfolio was 5.7%, increasing when compared to the one reported in 4Q20. This quarterly variation is mainly due to the impact on the valuation of the loan portfolio that was previously under credit reliefs. On an annual basis, the effect of the lower net present value of loans resulting from solutions granted to clients is visible, as well as the impact of the reduction in the reference rates by the Central Bank in Colombia and, the lower income accrued by a greater portion of clients in stage 3 under IFRS 9.

Annualized Interest

1Q20

4Q20

1Q21

Margin

Loans' Interest margin

6.2%

5.3%

5.7%

Debt investments' margin

0.4%

-3.2%

1.7%

Net interest margin

5.6%

4.0%

5.1%

Total funding cost decreased during 1Q21. Saving accounts and checking accounts have increased their share over the total funding mix during the last twelve months. Saving accounts accounted by 35% as of 1Q20, by 1Q21 they represent 41%. Checking accounts represented 14% as of 1Q20 and have increased to 16% as of 1Q21. The annualized average weighted cost of deposits was 1.57% in 1Q21, decreasing by 25 basis points when compared to 4Q20 and by 99 basis points when compared to 1Q20.

Average weighted

1Q20

4Q 20

1Q 21

funding cost

Checking accounts

0.00%

0.00%

0.00%

Saving accounts

1.56%

0.83%

0.71%

Time deposits

4.73%

3.92%

3.66%

Total deposits

2.56%

1.82%

1.57%

Long term debt

4.46%

5.06%

5.02%

Loans with banks

2.48%

2.18%

2.10%

Total funding cost

2.75%

2.16%

1.94%

5

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Bancolombia SA published this content on 04 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 May 2021 22:54:00 UTC.