Bancolombia Earnings Flash 2Q17
August 9, 2017 (Investorideas.com Newswire) Bancolombia reported negative results for the second quarter of the year in line with our expectations. Here are the main figures:
Bancolombia reported negative results for the second quarter of the year in line with our expectations. Here are the main figures:
In line with our expectations, net income for the quarter was of COP 654 billion, decreasing 10.8% YoY and increasing 7.4% QoQ. Although a recovery was observed in quarterly terms, it is worth noting that in the first quarter a tax on wealth was caused by COP 57 billion. ROAE for the quarter stood at 12.3% vs. 15.2% in 2Q16 and 11.44% in 1Q17.
Net loan showed a significant increase from an annual growth of 4.2% in 1Q17 to 7.63% in 2Q17, reaching COP 150.7 trillion, slightly surpassing our expectations. We highlight a rebound in consumption modality that presents an increase of 19.0% YoY and 5.22% QoQ. On the other hand, commercial modality grew 6.7% annually and 3.4% quarterly while housing modality had a 6.5% annual and 5.0% quarterly growth.
Net interest income stood at COP 2.63 trillion, increasing 8.3% annually and 0.5% quarterly. Thus, net interest margin stood at 6.2%, 10 bps lower than 1Q17, due to Central Bank cuts in the intervention rate.
Provisions expenses continued to be high (COP 790 billion in 2Q17) and portfolio quality (portfolio overdue at 30 days / total portfolio) stood at 4.27%, compared to 4.10% in 1Q17 and 3.10% in 2Q16, even by having a non-recurring contribution of 53 billion in net provisions of Panama which benefited the consolidated performance of provision expenses item.
Finally, efficiency indicator presented a slight deterioration to 51.7%, compared to 51.18% in 1Q17 and 48.23% in 2Q16.
Tomorrow at 8:00 a.m. conference call will be held, after which we will send our First Insight with a more detailed analysis.
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