MEDELLIN, Colombia, March 7, 2011 /PRNewswire/ -- Today, BANCOLOMBIA S.A. (NYSE: CIB; BVC: BCOLOMBIA, PFBCOLOM) ("Bancolombia" or "the Bank") announced its earnings results for the fourth quarter of 2010.
For the quarter ended December 31, 2010 ("4Q10"), Bancolombia reported consolidated net income of COP 429 billion, or COP 545 per share - USD 1.14 per ADR, which represents an increase of 14% as compared to the results for the quarter ended on September 30, 2010 ("3Q10") and an increase of 16% as compared to the results for the quarter ended on December 31, 2009 ("4Q09"). The cumulative net income for 2010 was COP 1,436 billion, which is 14% higher with respect to the same period of the previous year.
Bancolombia ended 4Q10 with COP 68,095 billion in assets, 5% higher than those at the end of 3Q10 and 10% greater than at the end 4Q09. At the same time, liabilities totaled COP 60,148 billion and increased 5% as compared to the figure presented in 3Q10 and 10% as compared to 4Q09( ).
- Net loans grew 7.5% during the quarter and 16.4% compared to the 4Q09. This growth confirms the improvement in the credit demand that started in 1Q10.
- Loan portfolio quality continues showing a good trend. Loan deterioration during 4Q10 was COP 42 billion, 43% lower than in 3Q10 and 64% lower than in 4Q09. Charge-offs were COP 166 billion, 20% higher than in 3Q10 and 28% lower than in 4Q09. Net provision charges totaled COP 81 billion.
- The balance sheet remains strong. Loan loss reserves represented 5.2% of total loans and 180% of past due loans at the end of 4Q10. The capital adequacy ratio ended the quarter at 14.7% (Tier 1 of 10.3%), a figure that is considerably higher than the 13.2% (Tier 1 de 10.4%) reported at the end of 4Q09.
- Solid liquidity position. The ratio of net loans to deposits (including borrowings from domestic development banks) was 100% at the end of 4Q10, and net investment securities totaled COP 8,676 billion, a reduction of 5.2% compared to 3Q10 and of 2.7% compared to 4Q09.
- Return on Equity was 19.7% for 2010. The annualized return on equity ("ROE") based on 4Q10 results, was 22.1%. ROE for the whole year 2010 was 19.7%, in line with the profitability goals defined by the Bank.
(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 December 31, 2010. The statements of income for the quarter ended December 31, 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 January 1, 2011 $1913,98 =US$ 11
Average Representative Market Rate for 4Q10: $ 1.868,66 =US$ 1
Tel.: (574) 4041424
Jaime A. Velasquez
Tel.: (574) 4042199
Tel.: (574) 4041837
SOURCE Bancolombia, S.A.