– big ideas for global investors Search
   Member Access       Sign-up       Newsfeeds        Companies        Stock Directories       Research       Video       Funding   

First Insight | Bancolombia Earnings Results 1Q14

Ideas get bigger when you share them...

May 6, 2014 ( newswire) Bancolombia's 1Q14 financial results

Join Investor Ideas Members to access the Renewable Energy stocks directory, water stocks, biotech stocks, defense stocks directories and the Insiders Corner
  • 1Q14's net total loans were COP 87.3 trillion, +26.9% YoY and +2.3% QoQ. The annual growth was explained, 16.5% by the contribution of Banistmo (formerly HSBC Panama) and 10.4% by the organic growth of the existing operation before the consolidation of Banistmo. 1Q14's net total loans came slightly below our estimates (-0.7% surprise).
  • Net interest income in the same period was COP 1,45 trillion, +3.58% YoY. 1Q14's NIM was 5.54%, 124bp below 1Q13's. However NIM, was 20bp above 4Q13. Net interest income was 0.3% above our estimates.
  • Total loans' quality indicator was 3.2% at the end of 1Q14, higher than 1Q13's (3.00%). This increase is explained by tighter regulations applied to Banistmo's loans past due.
  • Operating expenses showed a slow growth that surprised us positively. 1Q14's operating expenses totaled COP 1,17 trillion, decreasing 2.9% with respect to 4Q13 and increasing 7.4% with respect to 1Q13. 1Q14's efficiency indicator (ex-goodwill) was 54.2% 418bp below 4Q13's.
  • 1Q14's Net income increased 3.2%YoY to COP 508 billion. The annualized Return on Equity (ROAE) was 12.0% for 1Q14, well below the 15.6% of 1Q13. 1Q14's net income was 8% above our estimates and 7% above the market's.
  • Finally, Bancolombia's capital adequacy ratio was 13.66%, 305 bp above the 10.61% for 4Q13 and 330 bp below the 16.96% at the end of 1Q13. The quarterly increase in the capital adequacy was due to the new capital, proceeds from the issuance of shares.
  • These statements consolidate Banistmo operations (HSBC Panama) since November of 2013, making the numbers not comparable with previous quarters.

Overall, we consider 1Q14's results as slightly positive. The surprise came mainly from the operating expenses. Nonetheless, it is important to highlight, as we had mentioned before, that the benefits from Banistmo's transaction will not be reflected in the short term and Bancolombia's profitability indicators should remain low. We remember these statements consolidate Banistmo operations (HSBC Panama) since November of 2013, making the numbers not comparable with 1Q13.

Corredores Asociados S.A. Comisionista de Bolsa no se hace responsable por la toma de decisiones de inversión que se deriven de la información y de los análisis presentados en este documento, dichas decisiones, sus efectos y consecuencias serán de exclusiva responsabilidad del inversionista. Los datos publicados son informativos y han sido tomados de fuentes confiables, pero Corredores Asociados S.A. no garantiza que los mismos estén libres de errores. No se permite la reproducción total o parcial de este documento sin la autorización previa y expresa de Corredores Asociados S.A.

More Info:

This news is published on the Newswire and its syndicated partner network

Publish Your News - Send a release
News now!

Get free news alerts: Sign up here

Published at the Newswire - Big ideas for Global Investors

Disclaimer/ Disclosure:The newswire is a third party publisher of news and research as well as creates original content as a news source. Original content created by investorideas is protected by copyright laws other than syndication rights. Investorideas is a news source on Google news and Linkedintoday plus hundreds of syndication partners. Our site does not make recommendations for purchases or sale of stocks or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated by featured companies, news submissions, content marketing and online advertising. Contact each company directly for press release questions. Disclosure is posted on each release if required but otherwise the news was not compensated for and is published for the sole interest of our readers. More disclaimer info:

BC Residents and Investor Disclaimer : Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: Global investors must adhere to regulations of each country.

Free News Alerts


Investor Ideas © 2000 - 2014®, ECON

Sign up here

login | logout | about us | contact | disclaimer / disclosure |
advertise | company profile directory | partners / links |
job search | privacy policy | trade | services | sitemap |