FORM 6-K
 

CONFORMED COPY

SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
 

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1933
 

For the month of August 2002
 

BANCOLOMBIA S.A.

(Translation of Registrant’s name into English)

 

Calle 50 No. 51-66
Medellín, Colombia

(Address of principal executive offices)

 

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

     
  Form 20-F   (X BOX) Form 40-F    (BOX)

(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)

     
  Yes   (BOX) No   (X BOX)

(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-___________.)

 


 
 

      This Report on Form 6-K shall be incorporated by reference into the registrant’s registration statement on Form F-3 (File No. 333-12658).

 


 
 

SIGNATURE

         Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

         
  BANCOLOMBIA S.A.
    (Registrant)
         
Date: August 16, 2002   By   /s/ Jaime Alberto Velásquez B.
       
        Name: Jaime Alberto Velásquez B.
Title: Vice President of Finance

 

(LG BANCOLOMBIA LOGO)

BANCOLOMBIA ANNOUNCES CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED
JUNE 30, 2002

August 16, 2002, Medellín, Colombia - Bancolombia S.A. (NYSE: CIB) announced today the financial results for the quarter ended June 30, 2002. 1

                         
CONSOLIDATED INCOME STATEMENT                        
AND BALANCE SHEET   Quarter   Growth
(Ps millions as of June 30, 2002)   1Q 02   2Q 02   2Q02/1Q02
 
 
 
ASSETS
                        
Loans, net
     5,117,717       5,083,957       -0.66 %
Investment Securities, net
     3,440,145       3,865,654       12.37 %
Other assets
     1,939,352       1,822,410       -6.03 %
Total assets
     10,497,214       10,772,021       2.62 %
LIABILITIES AND SHAREHOLDERS’ EQUITY
                        
Deposits
     7,497,986       7,954,830       6.09 %
Other liabilities
     2,025,991       1,798,230       -11.24 %
Total liabilities
     9,523,977       9,753,060       2.41 %
Shareholders’ equity
     973,237       1,018,961       4.70 %
Total liabilities and shareholders’ equity
     10,497,214       10,772,021       2.62 %
Interest income
     277,502       290,440       4.66 %
Interest expense
     127,054       120,499       -5.16 %
Net interest income
     150,448       169,941       12.96 %
Net provisions
     (39,784 )     (43,610 )     9.62 %
Other operating income
     95,489       85,018       -10.97 %
Other operating expense
     162,005       164,460       1.52 %
Non-operating income, net
     5,004       (3,867 )     -177.28 %
Income tax expense
     (8,011 )     (9,014 )     12.52 %
Net income
     41,141       34,008       -17.34 %
    1 The financial information contained herein includes the results of Bancolombia’s financial subsidiaries: Bancolombia Panama-Cayman, Colcorp, Leasing Colombia, Almacenar, and Fiducolombia. This information has been prepared on a consolidated basis, as set forth above, in accordance with Colombian GAAP, expressed in nominal pesos, and has not been audited. All growth rates mentioned herein are not adjusted for inflation.
    Exchange rate:      June 30, 2002       TRM COP 2,398.82/USD
                               March 31, 2002    TRM COP 2,261.23/USD

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(SM BANCOLOMBIA LOGO)

I.  HIGHLIGHTS:

•   Bancolombia’s net income amounted to Ps 34 billion, US$ 0.100 per ADS, during the quarter ended June 30, 2002, as compared to a net income of Ps 41 billion, US$ 0.125 per ADS, for the quarter ended March 31, 2002.
 
•   Bancolombia showed positive results during the quarter driven by higher net interest income, and fees and income from services. During the quarter, there was an increase of total net provisions from Ps (39,784) million to Ps (43,610) million, represented by Ps (26,876) million for loans and Ps (25,143) million for investments.
 
•   Net interest income increased 13.0% in the second quarter over the first quarter. This increase is the result of higher income from investment portfolio and lower interest expenses. Net interest margin increased to 7.8% from 7.1% quarter-over-quarter.
 
•   Bancolombia posted Ps 73 billion in total fees and income from services, up 5.3% during the second quarter. Total fees and income from services increased to 34.4% from 33.4% as a percentage of total operating income quarter-over-quarter.
 
•   Bancolombia’s total operating expenses increased 1.8% during the quarter mainly due to higher administrative and other expenses, which increased 2.3% for the same period.
 
•   Demand for loans from Bancolombia during the second quarter continues to be weak. During the quarter, the Bank’s gross loans decreased 1.0% while total deposits increased 6.1%. Consequently, the investment securities portfolio amounted to Ps 3,912 billion, up 13% during the quarter.
 
•   The annualized ROE and ROA were 13.3% and 1.3% for the second quarter, respectively.

Banking Sector2

•   The results for the Colombian Banking Sector for 2002 continue to improve. The Colombian Banking Sector’s accrued results, including former CAV’s3, as of June 2002 posted a net income of Ps 539,384 million.
 
•   Gross loans in the Colombian Banking Sector increased 0.8% from March 2002 to June 2002, while total deposits increased 4.6% during the same period.

II.  CONSOLIDATED BALANCE SHEET

Assets

         2 Banking sector figures are published by the Superintendency of Banking on their web page www.superbancaria.gov.co. BANCOLOMBIA is not responsible for the accuracy of those figures.

         3 Mortgage banks (CAV’s) have to be converted into commercial banks according to Law 510 of 1999. Currently, the Superintendency of Banking consolidates mortgage banks (CAV’s) in the banking sector. Banking figures stated in this report include mortgage banks (CAV’s).

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Total assets increased 2.6% to Ps 10,772 billion as of June 30, 2002 from Ps 10,497 billion as of March 31, 2002, and increased 22% from Ps 8,829 billion as of June 30, 2001. The main driver of this was larger volume in investment securities, which increased 13% to Ps 3,912 billion from Ps 3,461 billion quarter-over-quarter.

Loan Portfolio

Bancolombia’s gross loans totaled Ps 5,387 billion as of June 30, 2002, down 1.0% from Ps 5,440 billion as of March 31, 2002. 80% of this reduction is due to loan charge-offs totaling Ps 42,937 million. Additionally, total corporate loans decreased 4.4% during the quarter from Ps 3,499 billion to Ps 3,344 billion with working capital loans decreasing significantly. However, total retail loans increased 5.2% during the same period from Ps 1,911 billion as of March 31, 2002 to Ps 2,011 billion as of June 30, 2002, with loans funded by domestic development banks, working capital loans for small and medium-sized companies, and personal loans increasing most significantly.

Total gross loans within the Colombian Banking sector increased 0.8% from March 2002 to June 2002. Bancolombia’s (unconsolidated) accumulated gross loan market share in the Colombian Banking Sector decreased to 11.5% as of June 30, 2002 from 11.8% as of March 31, 2002.

                                         
LOAN PORTFOLIO           As of           Growth
(Ps millions)   30-Jun-01   31-Mar-02   30-Jun-02   2Q02/1Q02   2Q02/2Q01
 
 
 
 
 
CORPORATE
                                        
Trade Financing
     77,609       97,460       124,437       27.68 %     60.34 %
Loans funded by domestic development banks
     287,581       280,470       294,739       5.09 %     2.49 %
Working capital loans
     3,165,354       3,079,519       2,886,281       -6.27 %     -8.82 %
Credit Cards
     3,883       7,041       5,310       -24.58 %     36.75 %
Overdrafts
     38,278       34,287       32,848       -4.20 %     -14.19 %
Total Corporate
     3,572,705       3,498,777       3,343,615       -4.43 %     -6.41 %
RETAIL
                                        
Credit Cards
     226,400       235,759       227,531       -3.49 %     0.50 %
Personal loans
     390,139       444,075       463,896       4.46 %     18.91 %
Automobile loans
     27,311       15,789       16,536       4.73 %     -39.45 %
Overdrafts
     93,625       124,242       127,138       2.33 %     35.80 %
Loans funded by domestic development banks
     100,731       159,592       208,980       30.95 %     107.46 %
Trade Financing
     35,914       34,611       46,200       33.48 %     28.64 %
Working capital loans
     773,085       896,812       920,444       2.64 %     19.06 %
Total Retail
     1,647,205       1,910,880       2,010,725       5.23 %     22.07 %
MORTGAGE
     33,461       30,695       32,450       5.72 %     -3.02 %
Total loans
     5,253,371       5,440,352       5,386,790       -0.98 %     2.54 %
Allowance for loan losses
     (286,325 )     (322,635 )     (302,833 )     -6.14 %     5.77 %
Total loans, net
     4,967,046       5,117,717       5,083,957       -0.66 %     2.35 %

3

 

(SM BANCOLOMBIA LOGO)

                                                 
LOAN CLASSIFICATION                                                
(Ps millions)   As of 30-Jun-01   As of 31-Mar-02   As of 30-Jun-02
 
 
 
¨A¨ Normal
     4,221,701       80.4 %     4,278,975       78.7 %     4,349,013       80.7 %
¨B¨ Subnormal
     578,484       11.0 %     599,923       11.0 %     498,077       9.3 %
¨C¨ Deficient
     90,443       1.7 %     139,256       2.6 %     135,866       2.5 %
¨D¨ Doubtful recovery
     214,400       4.1 %     274,362       5.0 %     233,695       4.3 %
¨E¨ Unrecoverable
     148,343       2.8 %     147,836       2.7 %     170,139       3.2 %
Total
     5,253,371       100 %     5,440,352       100 %     5,386,790       100 %
Loans classified as C,D and E
as a percentage of total loans
             8.6 %             10.3 %             10.0 %

Asset Quality

The Bank’s level of past due loans as a percentage of total loans was 5.09% as of June 2002, higher than the 4.87% level registered during the first quarter of 2002. The increase is the result of a deterioration in the debt of a public utility company, EMCALI. This loan was classified as “D” and provisioned at 100% as of March 2002, but as of June 2002 it became past due and was reclassified as “E”. However, this company is currently negotiating to restructure its debt. Bancolombia (consolidated) had loan charge-offs of Ps 42,937 million during the quarter.

As of June 30, 2002, the level of allowances of the Bank’s past due loans was 118.9%, down from 130.3% registered during the previous quarter. This level is considerably better than the Colombian Banking Sector’s average of 56.9% of past due coverage as of June 30, 2002.

                                         
LOAN PORTFOLIO QUALITY           As of           Growth
(Ps millions)   30-Jun-01   31-Mar-02   30-Jun-02   2Q02/1Q02   2Q02/2Q01
 
 
 
 
 
COMMERCIAL
                                        
Performing loans
     4,131,639       4,416,908       4,326,583       -2.04 %     4.72 %
Past due loans
     168,465       213,021       230,424       8.17 %     36.78 %
Non-performing loans
     115,909       177,527       167,594       -5.60 %     44.59 %
CONSUMER
                                        
Performing loans
     865,838       728,990       754,853       3.55 %     -12.82 %
Past due loans
     53,968       50,738       42,480       -16.28 %     -21.29 %
Non-performing loans
     30,898       34,389       28,271       -17.79 %     -8.50 %
MORTGAGE
                                        
Performing loans
     32,182       29,336       31,180       6.28 %     -3.11 %
Past due loans
     1,279       1,359       1,270       -6.59 %     -0.74 %
Non-performing loans
     976       1,105       1,198       8.43 %     22.73 %

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(SM BANCOLOMBIA LOGO)

                                         
ASSET QUALITY           As of           Growth
(Ps millions)   30-Jun-01   31-Mar-02   30-Jun-02   2Q02/1Q02   2Q02/2Q01
 
 
 
 
 
Total performing past due loans
     75,929       52,097       77,111       48.01 %     1.56 %
Total nonperforming past due loans (1)
     147,783       213,021       197,063       -7.49 %     33.35 %
Total past due loans
     223,712       265,118       274,174       3.42 %     22.56 %
Allowance for loans and accrued interest losses
     313,340       345,315       325,876       -5.63 %     4.00 %
Past due loans to total loans
     4.26 %     4.87 %     5.09 %                
Non performing loans to total loans
     2.81 %     3.92 %     3.66 %                
Allowances to past due loans (2)
     140.06 %     130.25 %     118.86 %                
Allowances to C, D and E loans (2)
     69.14 %     61.50 %     60.38 %                
Allowances to non performing loans (2)
     212.03 %     162.10 %     165.37 %                
Performing loans to total loans
     97.19 %     96.08 %     96.34 %                

(1)   Non-performing loans are commercial and consumer loans that are past due 90 days or more, and mortgage loans that are past due 120 days or more. Beginning in January 2002, non-performing loans are consumer loans that are past due 60 days or more, commercial loans that are past due 90 days or more, and mortgage loans that are past due 120 days or more.
(2)   Allowance = allowance for loan and accrued interest losses.

Liabilities

Total deposits increased 6.1%, from Ps 7,498 billion to Ps 7,955 billion quarter-over-quarter and 21.2% from Ps 6,565 billion year-over-year. Bancolombia’s non-interest-bearing deposits increased 9.4% during the second quarter while interest-bearing deposits increased 5.3% during the same period. Non-interest bearing checking accounts expressed as a percentage of total deposits increased from 17.2% as of March 31, 2002 to 18.1% as of June 30, 2002.

Total deposits within the Colombian Banking Sector increased 4.6% from March 2002 to June 2002. Bancolombia’s (unconsolidated) deposit market share figures comparing March 31, 2002 and June 30, 2002 are as follows: total checking accounts decreased from 15.9% to 15.8%, savings accounts increased from 9.6% to 10.1% and time deposits increased from 11.0% to 12.0%. Total deposits have increased from 11.3% to 11.9%.

Shareholders’ Equity

Bancolombia’s Shareholders’ Equity increased 4.7% quarter-over-quarter from Ps 973 billion to Ps 1,019 billion. As of June 30, 2002, Bancolombia’s unconsolidated ratio of technical capital to risk weighted assets was 11.6%.

                                         
TECHNICAL EQUITY RISK WEIGHTED ASSETS           As of           Growth
Unconsolidated (Ps nominal million)   30-Jun-01   31-Mar-02   30-Jun-02   2Q02/1Q02   2Q02/2Q01
 
 
 
 
 
Basic capital
     538,862       528,446       551,001       4.27 %     2.25 %
Additional capital
     178,083       219,142       210,096       -4.13 %     17.98 %
Technical capital
     716,945       747,588       761,097       1.81 %     6.16 %
Market Risk
             35,900       26,351       -26.60 %        
Risk weighted assets
     6,402,955       6,435,041       6,298,290       -2.13 %     -1.63 %
CAPITAL ADEQUACY
     11.20 %     10.94 %     11.55 %     5.56 %     3.10 %

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(SM BANCOLOMBIA LOGO)

III.  INCOME STATEMENT

Bancolombia’s net income for the quarter ended June 30, 2002 amounted to Ps 34 billion, compared to Ps 41 billion for the quarter ended March 31, 2002. As we mentioned before, the decrease during the quarter is a result of lower other operating income due to dividends, which under Colombian law are accounted for at the General Shareholders’ Meeting during the first quarter, and higher total net provisions.

Net Interest Income

Net interest income increased 13% over the quarter to Ps 170 billion from Ps 150 billion. This growth was caused by higher interest income of 4.7% and lower interest expenses, which decreased 5.2% during the same period. As a result, net interest margin increased to 7.8% from 7.1% quarter-over-quarter.

Interest Income
 Total interest income amounted to Ps 290 billion during the second quarter, up 4.7% from Ps 278 billion registered in the first quarter. Income from interest on investment securities increased 32.8% due to higher volume, while interest on loans decreased 5.3% due to lower DTF rates.

Interest Expense
 Total interest expenses decreased 5.2% to Ps 120 billion from Ps 127 billion quarter-over-quarter due to lower interest rates. The DTF rate registered during the last week of March 2002 was 10.55%, declining to 8.21% during the last week of June 2002.

Provisions

The item “Recovery of provisions for foreclosed assets and other assets” has increased from Ps 6 billion as of June 30, 2001 to Ps 20 billion as of June 30, 2002. Given the increased relevance of this figure, it has been reclassified from “other income” to “total net provisions". As a result, the numbers for total net provisions in this report are adjusted accordingly.

Total net provisions for the second quarter amounted to Ps (43,610) million, up 9.6% when compared to Ps (39,784) million for the previous quarter, as follows:

•   Provisions for loans decreased to Ps (26,876) million from Ps (49,268) million quarter-over-quarter.
 
•   Provisions for foreclosed assets increased to Ps (5,436) million from Ps (4,313) million during the same period. Beginning July 2002, any foreclosed asset received in payment has to be provisioned at 40% of its commercial value.
 
•   Provisions for investments increased to Ps (25,143) million from Ps (741) million quarter-over-quarter.

Fees and Income from Services

Total fees and income from services amounted to Ps 73 billion in the second quarter, up 5.3% from Ps 69 billion in the first quarter, and up 20.0% from Ps 61 billion year-over-year. Commissions from banking services, commissions and fees from fiduciary activities, and

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checking fees increased 8.3%, 21.3% and 6.4%, respectively, during the quarter. Total fees and income from services reached 34.4% from 33.4% as a percentage of total operating income during the quarter.

As we mentioned in our previous earnings release, in March 2002 the Bank canceled some outstanding VISA credit cards that had not been active during a long period of time. The number of outstanding credit cards decreased 2.5% from June 30, 2001 to June 30, 2002. However, there was an increase of 2.2% quarter-over-quarter. Bancolombia’s accumulated credit card billing increased 13.4% year-over-year, achieving 16% of market share.

                 ACCUMULATED CREDIT CARD BILLING

                                 
                    %   2002
(As of June 30, in Ps million)   2001   2002   Growth   Mkt. Share
 
 
 
 
Bancolombia Mastercard
     300,809       332,871       10.7 %     10.9 %
Bancolombia VISA
     129,888       155,716       19.9 %     5.1 %
Total Bancolombia
     430,697       488,587       13.4 %     16.0 %
Colombian Industry
     2,672,337       3,050,605       14.2 %        
Source: Credibanco and Red Multicolor
                                

                 CREDIT CARD MARKET SHARE

                                 
                    %   2002
Number of credit cards as of June 30,   2001   2002   Growth   Mkt. Share
 
 
 
 
Bancolombia Mastercard
     153,862       158,329       2.9 %     7.5 %
Bancolombia VISA
     105,380       94,335       -10.5 %     4.5 %
Total Bancolombia
     259,242       252,664       -2.5 %     12.0 %
Colombian Industry
     1,924,312       2,097,537       9.0 %        
Source: Credibanco and Red Multicolor
                                

Operating Expenses

Operating expenses increased 1.8% to Ps 155 billion from Ps 152 billion during the quarter. This increase resulted from a slight increase in administrative and other expenses, and salaries and employee benefits. During the second quarter, the efficiency ratio reached 60.8%, improving slightly from 61.9% registered the previous quarter.

IV.  SUBSIDIARIES

SUBSIDIARIES’ BREAKDOWN

                                                 
            Bancolombia           Leasing                
As of June 30, 2002 (Ps millions)   Bancolombia   Panama   Colcorp   Colombia   Almacenar   Fiducolombia
 
 
 
 
 
 
Total assets
     8,313,293       2,356,068       340,303       214,710       91,955       72,273  
Total shareholders’ equity
     1,006,421       113,276       239,130       19,188       72,242       53,285  
Net income (loss)
     72,979       (5,117 )     5,241       2,615       902       8,046  

Bancolombia Panama and its Subsidiaries

The following table included in this report for the subsidiary is expressed in US dollars.

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BANCOLOMBIA PANAMA                        
INCOME STATEMENT                        
AND BALANCE SHEET   Quarter   Growth
(US$)   1Q 02   2Q 02   2Q02/1Q02
 
 
 
ASSETS
                        
Loans, net
     235,635,546       235,210,150       -0.18 %
Investment securities, net
     586,602,956       623,762,252       6.33 %
Other assets
     153,876,665       137,566,907       -10.60 %
Total assets
     976,115,167       996,539,309       2.09 %
LIABILITIES AND SHAREHOLDERS’ EQUITY
                        
Deposits
     875,465,295       887,468,118       1.37 %
Other liabilities
     49,161,250       61,158,992       24.40 %
Total liabilities
     924,626,545       948,627,110       2.60 %
Shareholders’ equity
     51,488,622       47,912,199       -6.95 %
Total liabilities and shareholders’ equity
     976,115,167       996,539,309       2.09 %
Interest income
     15,662,104       17,166,902       9.61 %
Interest expense
     6,851,034       6,456,286       -5.76 %
Net interest income
     8,811,070       10,710,616       21.56 %
Net provisions
     (6,938,589 )     (13,907,572 )     100.44 %
Other operating income
     144,233       361,356       150.54 %
Other operating expense
     605,790       739,693       22.10 %
Net income (loss)
     1,410,924       (3,575,293 )     -353.40 %

Bancolombia Panama’s total assets increased 2.1% from US$976 million to US$997 million quarter-over-quarter. This growth was the result of higher volume of investment securities, which increased 6.3% to US$624 million from US$587 million during the same period. The Bank’s total liabilities increased 2.6% from US$925 million to US$949 million quarter-over-quarter.

Bancolombia Panama showed very positive results during the quarter, not taking provisions into account. Net interest income increased 21.6% during the quarter from US$8.8 million to US$10.7 million. This was the result of higher volume of the investment portfolio. However, net provisions increased 100.4% during the quarter from US$(6.9) million to US$(13.9) million due to a provision for investments. As a result, Bancolombia Panama showed a net loss of US$ 3.6 million during the second quarter.

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 important factors that could cause actual results to differ materially from those indicated in such statements.

8

 

(SM BANCOLOMBIA LOGO)

                         
          Quarters        
PRINCIPAL RATIOS   2Q01   1Q02   2Q02
 
 
 
PROFITABILITY
                        
Net interest margin (1)
     7.91 %     7.11 %     7.77 %
Return on average total assets (2)
     1.36 %     1.60 %     1.30 %
Return on average shareholders’ equity (3)
     13.38 %     16.11 %     13.26 %
EFFICIENCY
                        
Operating expenses to net operating income (4)
     68.28 %     61.85 %     60.76 %
Operating expenses to average total assets (4)
     6.57 %     5.90 %     5.92 %
CAPITAL ADEQUACY
                        
Shareholders’ equity to total assets
     10.60 %     9.27 %     9.46 %
Technical capital to risk weighted assets (5)
     11.20 %     10.94 %     11.55 %
ASSET QUALITY
                        
Non performing loans to total loans (6)
     2.81 %     3.92 %     3.66 %
C, D and E loans to total loans (7)
     8.63 %     10.32 %     10.02 %
Past due loans to total loans
     4.26 %     4.87 %     5.09 %
Allowances to non performing loans (8)
     212.03 %     162.10 %     165.37 %
Allowances to past due loans (8)
     140.06 %     130.25 %     118.86 %
Allowances to C, D and E loans (8)
     69.14 %     61.50 %     60.38 %
Allowances to total loans (8)
     5.96 %     6.35 %     6.05 %

1.   Defined as net interest income divided by monthly average interest-earning assets.
 
2.   Net income divided by monthly average total assets.
 
3.   Net income divided by monthly average shareholders’ equity.
 
4.   Excluding merger expenses. Operating Income includes Net Interest Income, Total fees and income from services, and Total other operating income.
 
5.   Calculated on an unconsolidated basis.
 
6.   Non-performing loans are commercial and consumer loans that are past due 90 days or more, and mortgage loans that are past due 120 days or more. Beginning January 2002, non-performing loans are consumer loans that are past due 60 days or more, commercial loans that are past due 90 days or more, and mortgage loans that are past due 120 days or more.
 
7.   “C”, “D” and “E” loans include all non-performing loans as well as consumer and commercial loans classified “C” which are considered performing loans under the regulations of the Colombian Superintendency of Banking.
 
8.   Allowance = allowance for loan and accrued interest losses.
                         
STOCK INDICATORS           Quarters        
  2Q01   1Q 02   2Q 02
 
 
 
Net Income
     30,013       41,141       34,008  
USD Earnings per ADS
     0.090       0.125       0.100  
ROAA
     1.36 %     1.60 %     1.30 %
ROAE
     13.38 %     16.11 %     13.26 %
P/BV ADS
     0.80       0.57       0.80  
P/BV Local (1)
     0.69       0.74       0.98  
Shares Outstanding
     576,695,395       576,695,395       576,695,395  

    (1) Share prices on the Colombian Stock Exchange.

9

 

(SM BANCOLOMBIA LOGO)

                                         
CONSOLIDATED BALANCE SHEET           As of           Growth
(Ps millions as of June 30, 2002)   30-Jun-01   31-Mar-02   30-Jun-02   2Q02/1Q02   2Q02/2Q01
 
 
 
 
 
ASSETS
                                        
Cash and due from banks
     400,746       417,824       405,341       -2.99 %     1.15 %
Overnight funds
     147,666       190,355       180,888       -4.97 %     22.50 %
Total cash and equivalents
     548,412       608,179       586,229       -3.61 %     6.90 %
Investments securities
     2,038,083       3,460,641       3,911,529       13.03 %     91.92 %
Market value allowance
     (22,026 )     (20,496 )     (45,875 )     123.82 %     108.28 %
Net Investment Securities
     2,016,057       3,440,145       3,865,654       12.37 %     91.74 %
Gross Loans
     5,253,371       5,440,352       5,386,790       -0.98 %     2.54 %
Allowance for loan losses
     (286,325 )     (322,635 )     (302,833 )     -6.14 %     5.77 %
Net total loans
     4,967,046       5,117,717       5,083,957       -0.66 %     2.35 %
Accrued interest receivable on loans
     104,034       109,018       98,763       -9.41 %     -5.07 %
Allowance for accrued interest losses
     (27,015 )     (22,647 )     (23,043 )     1.75 %     -14.70 %
Net total interest accrued
     77,019       86,371       75,720       -12.33 %     -1.69 %
Customers’ acceptances
     43,039       40,319       6,105       -84.86 %     -85.82 %
Net accounts receivable
     64,430       69,084       55,667       -19.42 %     -13.60 %
Net premises and equipment
     270,913       254,463       253,727       -0.29 %     -6.34 %
Foreclosed assets
     75,245       50,162       53,388       6.43 %     -29.05 %
Prepaid expenses and deferred charges
     81,573       52,235       42,590       -18.47 %     -47.79 %
Good will
     152,876       135,890       130,228       -4.17 %     -14.81 %
Net lease
     226,844       268,916       280,375       4.26 %     23.60 %
Other
     34,057       131,087       86,568       -33.96 %     154.18 %
Reappraisal of assets
     271,948       242,646       251,813       3.78 %     -7.40 %
Total assets
     8,829,459       10,497,214       10,772,021       2.62 %     22.00 %
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                        
LIABILITIES
                                        
DEPOSITS
                                        
Non-interest bearing
     1,190,718       1,384,436       1,514,512       9.40 %     27.19 %
Checking accounts
     1,107,723       1,293,295       1,438,034       11.19 %     29.82 %
Other
     82,995       91,141       76,478       -16.09 %     -7.85 %
Interest bearing
     5,374,732       6,113,550       6,440,318       5.34 %     19.83 %
Checking accounts
     590,839       676,731       518,946       -23.32 %     -12.17 %
Time deposits
     3,015,672       3,528,750       3,804,278       7.81 %     26.15 %
Savings deposits
     1,768,221       1,908,069       2,117,094       10.95 %     19.73 %
Total deposits
     6,565,450       7,497,986       7,954,830       6.09 %     21.16 %
Overnight funds
     385,973       394,202       310,090       -21.34 %     -19.66 %
Bank acceptances outstanding
     41,701       26,409       24,008       -9.09 %     -42.43 %
Interbank borrowings
     156,645       476,735       394,396       -17.27 %     151.78 %
Borrowings from domestic development banks
     301,137       382,049       446,978       17.00 %     48.43 %
Accounts payable
     240,598       482,867       369,012       -23.58 %     53.37 %
Other liabilities
     98,824       112,676       105,762       -6.14 %     7.02 %
Bonds
     9,677       7,623       5,077       -33.41 %     -47.54 %
Accrued expenses
     78,435       121,579       116,176       -4.44 %     48.12 %
Minority interest in consolidated subsidiaries
     15,082       21,851       26,731       22.33 %     77.24 %
Total liabilities
     7,893,522       9,523,977       9,753,060       2.41 %     23.56 %
Shareholders’ equity
     935,937       973,237       1,018,961       4.70 %     8.87 %
Total liabilities and shareholders’ equity
     8,829,459       10,497,214       10,772,021       2.62 %     22.00 %

10

 

(SM BANCOLOMBIA LOGO)
                                                         
CONSOLIDATED INCOME STATEMENT   As of   Quarter   Growth
(Nominal Ps Millions)   30-Jun-01   30-Jun-02   2Q 01   1Q 02   2Q 02   2Q 02/1Q 02   2Q 02/2Q 01
 
 
 
 
 
 
 
Interest income and expenses
                                                        
Interest on loans
     406,876       373,212       202,905       191,686       181,526       -5.30 %     -10.54 %
Interest on investment securities
     122,614       169,381       55,831       72,767       96,614       32.77 %     73.05 %
Overnight funds
     14,483       6,063       6,582       3,529       2,534       -28.19 %     -61.50 %
Leasing
     17,053       19,286       8,718       9,520       9,766       2.58 %     12.02 %
Total interest income
     561,026       567,942       274,036       277,502       290,440       4.66 %     5.99 %
 
 
 
 
 
 
 
Interest expense
                                     
Time deposits
     160,882       152,312       80,777       78,637       73,675       -6.31 %     -8.79 %
Savings deposits
     56,185       54,459       28,292       26,919       27,540       2.31 %     -2.66 %
Total interest on deposits
     217,067       206,771       109,069       105,556       101,215       -4.11 %     -7.20 %
 
 
 
 
 
 
 
Interbank borrowings
     20,898       4,904       10,321       2,806       2,098       -25.23 %     -79.67 %
Borrowings from domestic development banks
     17,267       21,495       8,544       10,448       11,047       5.73 %     29.30 %
Overnight funds
     9,375       14,383       4,467       8,244       6,139       -25.53 %     37.43 %
Total interest expense
     264,607       247,553       132,401       127,054       120,499       -5.16 %     -8.99 %
 
 
 
 
 
 
 
Net interest income
     296,419       320,389       141,635       150,448       169,941       12.96 %     19.99 %
Provision for loan and accrued interest losses
     (131,237 )     (145,088 )     (50,258 )     (75,373 )     (73,064 )     -3.06 %     45.38 %
Provision for foreclosed assets and other assets
     (16,806 )     (38,509 )     (11,434 )     (6,939 )     (31,570 )     354.96 %     176.11 %
Recovery of provisions for foreclosed assets and other assets
     6,113       19,639       2,559       13,074       6,565       -49.79 %     156.55 %
Recovery of provisions for past due loans and accrued interest losses
     79,826       72,293       27,155       26,105       46,188       76.93 %     70.09 %
Recovery of charged-off loans
     9,252       11,620       4,627       3,349       8,271       146.97 %     78.76 %
 
 
 
 
 
 
 
Total net provisions
     (52,852 )     (80,045 )     (27,351 )     (39,784 )     (43,610 )     9.62 %     59.45 %
Net interest income after provision for loans
and accrued interest losses
     243,567       240,344       114,284       110,664       126,331       14.16 %     10.54 %
 
 
 
 
 
 
 
Commissions from banking services
     39,144       47,090       20,112       22,602       24,488       8.34 %     21.76 %
Credit card merchant fees
     18,640       19,841       9,186       9,740       10,101       3.71 %     9.96 %
Credit and debit card annual fees
     19,245       23,867       9,918       11,782       12,085       2.57 %     21.85 %
Checking fees
     18,689       20,204       9,274       9,791       10,413       6.35 %     12.28 %
Warehouse services
     15,629       19,160       7,689       9,535       9,625       0.94 %     25.18 %
Commissions-fees from fiduciary activities
     12,434       17,320       6,317       7,826       9,494       21.31 %     50.29 %
Check remittance
     11,769       10,138       5,695       5,165       4,973       -3.72 %     -12.68 %
International operations
     10,128       9,773       4,748       4,852       4,921       1.42 %     3.64 %
Total fees and other service income
     145,678       167,393       72,939       81,293       86,100       5.91 %     18.04 %
 
 
 
 
 
 
 
Fees and other service expenses
     (24,473 )     (25,818 )     (12,437 )     (12,348 )     (13,470 )     9.09 %     8.31 %
Total fees and income from services
     121,205       141,575       60,502       68,945       72,630       5.34 %     20.05 %
 
 
 
 
 
 
 
Other operating income
                                                        
Net foreign exchange gains
     5,634       30,872       3,885       (1,324 )     32,196       -2531.72 %     728.73 %
Dividend income
     3,172       11,415       990       10,268       1,147       -88.83 %     15.86 %
Forward contracts in foreign currency
     461       (7,480 )     2,975       15,516       (22,996 )     -248.21 %     -872.97 %
Communication, postage and others
     3,958       4,125       2,064       2,084       2,041       -2.06 %     -1.11 %
Total other operating income
     13,225       38,932       9,914       26,544       12,388       -53.33 %     24.95 %
 
 
 
 
 
 
 
Total income
     377,997       420,851       184,700       206,153       211,349       2.52 %     14.43 %
Operating expenses
                                     
Salaries and employee benefits
     121,810       135,414       60,595       67,199       68,215       1.51 %     12.58 %
Compensation
     10,423       11,858       5,474       5,830       6,028       3.40 %     10.12 %
Administrative and other expenses
     139,209       144,174       71,037       71,270       72,904       2.29 %     2.63 %
Donation expenses
     60       396       14       372       24       -93.55 %     71.43 %
Depreciation
     15,713       15,176       7,672       7,437       7,739       4.06 %     0.87 %
Total operating expenses
     287,215       307,018       144,792       152,108       154,910       1.84 %     6.99 %
 
 
 
 
 
 
 
Net operating income
     90,782       113,833       39,908       54,045       56,439       4.43 %     41.42 %
Merger expenses
     21,978       19,447       10,723       9,897       9,550       -3.51 %     -10.94 %
Non-operating income (expense)
                                                        
Other income
     21,270       11,155       9,767       8,846       5,658       -36.04 %     -42.07 %
Recovery of deposit security
     6,335       2,421       365       2,421       —       -100.00 %     -100.00 %
Other expense
     (6,165 )     (15,788 )     (2,792 )     (6,263 )     (9,525 )     52.08 %     241.15 %
Total non-operating income
     21,440       (2,212 )     7,340       5,004       (3,867 )     -177.28 %     -152.68 %
Income before income taxes
     90,244       92,174       36,525       49,152       43,022       -12.47 %     17.79 %
Income tax expense
     (18,502 )     (17,025 )     (6,512 )     (8,011 )     (9,014 )     12.52 %     38.42 %
 
 
 
 
 
 
 
Net income
     71,742       75,149       30,013       41,141       34,008       -17.34 %     13.31 %
 
 
 
 
 
 
 

11