MEDELLIN, Colombia, Nov. 3, 2010 /PRNewswire-FirstCall/ -- Today, BANCOLOMBIA S.A. (NYSE: CIB; BVC: BCOLOMBIA, PFBCOLOM) ("Bancolombia" or "the Bank") announced its earnings results for the third quarter of 2010.
- Net loans grew 3.5% compared to 2Q10. Also, it increased 7.8% compared to the 3Q09 and 8.3% during the first nine months of the year. This growth confirms the improvement in the credit demand that started in 1Q10.
- Loan portfolio quality continues showing a good trend. The loan deterioration during 3Q10 was COP 73 billion, 106% higher than 2Q10 but 62% lower than 3Q09. Charge-offs were COP 139 billion, 38% lower than 2Q10 and 27% lower than 3Q09. Net provision charges totaled COP 138 billion.
- Solid liquidity position. The ratio of net loans to deposits (including borrowings from domestic development banks) was 96% at the end of 3Q10, and net investment securities totaled COP 9,152 billion, 1.6% higher as compared to 2Q10 and 12.6% as compared to 2Q09.
- The balance sheet remains strong. Loan loss reserves represented 5.5% of total loans and 163% of past due loans at the end of 3Q10. The capital adequacy ratio increased during the quarter and ended at 15.17% (Tier 1 of 10.6%), a figure that is considerably higher than the 13.8% (Tier 1 de 10.9%) reported at the end of 3Q09.
- Net income from fees and other services continued to increase consistently and totaled COP 390 billion, 6% higher than in 2Q10. This positive long-term trend is explained by higher income from credit cards, banking services and a greater utilization of the branch network.
For the quarter ended September 30, 2010 ("3Q10"), Bancolombia reported consolidated net income of COP 375 billion, or COP 476 per share - USD 1.06 per ADR, which represents an increase of 29% as compared to the results for the quarter ended on June 30, 2010 ("2Q10") and an increase of 17% as compared to the results for the quarter ended on September 30, 2009 ("3Q09"). The cumulative net income for the first nine months of 2010 was COP 1,007 billion, which is 14% higher with respect to the same period of the previous year.
Bancolombia's annualized return on equity ("ROE") was 20.6% for 3Q10, and 18.9% for the first nine months of the year 2010.
Bancolombia ended 3Q10 with COP 64,670 billion in assets, 3% higher than those at the end of 2Q10 and 8% greater than at the end 3Q09. At the same time, liabilities totaled COP 57,121 billion and increased 3% as compared to the figure presented in 2Q10 and 7% as compared to 3Q09(1).
(1) This report corresponds to the consolidated financial statements of BANCOLOMBIA S.A. ("BANCOLOMBIA") and its affiliates of which it owns, directly or indirectly more than 50% of the voting capital stock. These financial statements have been prepared in accordance with generally accepted accounting principles in Colombia and the regulations of Superintendencia Financiera de Colombia, collectively COL GAAP. BANCOLOMBIA maintains accounting records in Colombian pesos, referred to herein as "Ps." or "COP". Certain monetary amounts, percentages and other figures included in this report have been subject to rounding adjustments. There have been no changes to the Bank's principal accounting policies in the quarter ended September 30, 2010. The statements of income for the quarter ended September 30, 2010 are 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.
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 October 1, 2010: COP 1,801.01 =USD 1
Average Representative Market Rate for 3Q10: COP1834.10=USD 1
Bancolombia's Investor Relations
Phone (574) 4041837 / (574) 4041838
Alejandro Mejia (IR Manager) / Catalina Botero (Analyst)
SOURCE Bancolombia, S.A.