Today, BANCOLOMBIA S.A. (NYSE: CIB) announced its financial results for the second quarter of fiscal year 2008, ended June 30, 2008.(1)
SUMMARY:
During the quarter ended June 30, 2008 ("2Q08"), BANCOLOMBIA recorded net income of Ps. 375.3 billion, an increase of 55.6% as compared to the pro forma Ps. 241.3 billion for the quarter ended June 30, 2007 ("2Q07"). Net income for the first six months of 2008 ("1H08") totaled Ps. 629.2 billion, increasing 40.6% as compared to the same period of 2007.
As of June 30, 2008, BANCOLOMBIA's gross loans totaled Ps. 39,327 billion, increasing 22.0% as compared to 2Q07. Loan growth pace, although lower than recent years' levels, increased from the 21.5% year over year loan growth presented in the quarter ended March 31, 2008 ("1Q08").
BANCOLOMBIA's ratio of past due loans to total loans as of June 30, 2008 increased slightly to 3.5% from 3.4% in 1Q08. Charge-offs for 2Q08 totaled Ps. 104 billion and coverage ratio, measured as the ratio between allowances for loan and accrued interest losses and past due loans, increased to 120.1% from 115.2% in 1Q08.
BANCOLOMBIA's efficiency ratio, measured as the ratio between operating expenses and net operating income, reached 45.8% for 2Q08 compared to the 56.7% pro forma efficiency ratio for 2Q07.
BANCOLOMBIA's annualized average return on equity for 2Q08 was 29.5% increasing considerably from 19.7% for 1Q08. The Bank's earnings per share for 2Q08 were Ps. 476.43 or US$0.99 per ADR.
The Bank's positive performance in 2Q08 was mainly driven by strong growth in the main lines of revenue, such as:
-- Net interest income that totaled Ps. 857.8 billion in 2Q08, resulting in an increase of 24.6% as compared to the pro forma figures for 2Q07.
-- Fees and income from services that amounted to Ps. 346.5 billion in 2Q08, representing an increase of 18.0% as compared to the pro forma figures for 2Q07.
-- Other operating income that amounted to Ps. 195.8 billion in 2Q08, representing an increase of 314.0% as compared to the pro forma figures for 2Q07.
The Bank's performance in 2Q08 was partially off-set by:
-- Total net provisions that amounted to Ps. 241.7 billion for 2Q08, representing an increase of 96.2% when compared to the pro forma figures for 2Q07.
-- Fees and other service expenses that amounted to Ps 47.6 billion, increasing 113.9% as compared to the pro forma figures for 2Q07.
During 2Q08 BANCOLOMBIA executed an agreement to sell 100% of its interest in Multienlace S.A, company that provides business process outsourcing and contact center services to corporate clients. As a partial result of this deal, the Bank had non-recurring net income of Ps. 21 billion in 2Q08. In addition, the Bank recorded Ps. 19.7 billion as non-recurring net income as a consequence of the VISA IPO. -- BANCOLOMBIA S.A.
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