Construcciones El Condor 3Q 2021 Profits Nearly Unchanged Year-on-Year
Friday, 12 November 2021 09:47 Written by Roberto Peckham
Medellin-based highway construction giant Construcciones El Condor announced November 11 that its third quarter (3Q) net income nearly matched that of 3Q 2020, at COP$16 billion (US$4.1 million).
However, revenues dropped 34% year-on-year, to COP$372.7 billion (US$95.7 million), according to the company.
The drop in revenues “is associated with the completion period of the projects that were executed during previous years with significant billings, with the suspension of some projects that are awaiting environmental and property decisions, and execution of public-works contracts that have not yet begun,” according to the company.
“Additionally, the Paro Nacional [protest marches] that began at the end of April 2021 also affected the pace of the works for reasons of physical security of our collaborators in some areas and shortage of the main supplies in the projects.”
Cost increases in raw materials and supplies generated an operating loss of COP$4.7 billion (US$1.2 million) in the latest quarter, the company added.
Earnings before interest, taxes, depreciation and amortization (EBITDA) came-in at COP$24 billion (US$6.16 million) with EBITDA margin at 6.5%, down from 12.06% in 3Q 2020.
As of September 2021, El Condor’s assets totaled COP$2.34 trillion (US$601 million), while liabilities totaled COP$1.26 trillion (US$324 million).
“With the payment of the series of bonds issued in September 2019 for COP$81.5 billion (US$21 million) and the new funding of the structured loan granted by Bancolombia and Davivienda with a term of 24 months, the structure of current liabilities is maintained at levels close to 50%,” the company added.
Grupo Argos 3Q 2021 Net Profit Skyrockets Year-on-Year
Friday, 12 November 2021 09:19 Written by Roberto Peckham
Medellin-based Grupo Argos – parent of Cementos Argos (cement), Celsia (electric power) and Odinsa (highway/airport concessions) – announced November 11 that its corporate-wide profits for third quarter (3Q) 2021 hit COP$375 billion (US$96 million), up from COP$78 billion (US$20 million) in 3Q 2020.
Revenues hit COP$4.1 trillion (US$1.05 billion), up from COP$3.45 trillion (US$877 million) in 3Q 2020, while earnings before interest ,taxes, depreciation and amortization (EBITDA) rose to COP$1.16 trillion (US$298 million), compared to COP$857 billion (US$220 million) in 3Q 2020.
For the first nine months of 2021, net income has skyrocketed by 477% year-on-year, while revenues are up 14% year-on-year, to COP$11.9 trillion (US$3.06 billion), according to the company.
“In the construction materials business, cement sales volumes showed favorable dynamics during the quarter with an increase of 12%, consistent with the good economic performance recorded in all Cementos Argos regional offices,” the company noted.
“In infrastructure, the company began the execution of the contract to supply the concrete for one of the main works of the Bogotá Metro, which over the next 14 months will demand about 100,000 cubic meters of material.
“The airport concessions business registered in September the highest number of passengers mobilized since the [Covid-19] confinement measures began, with 2.4 million people, and also with a positive net result, this being the first quarter with a favorable balance since 2020.
“On highways, all Odinsa concessions are operating under normal conditions with a traffic of 128,000 vehicles per day on average, 70% higher than the same period in 2020 and 68% higher than the same period in 2019,” the company added.
Colombia Tops 50 Million Covid-19 Vaccinations
Thursday, 11 November 2021 11:34 Written by Roberto Peckham
Colombia’s Ministry of Health announced November 11 that as of midnight two days ago (November 9), more than 50 million shots of Covid-19 vaccine have now been applied here nationally.
Of that total, more than 22.3 million people have completed their required two-shot (or in the case of Jannsen, one-shot) regimen, while 27 million have received at least one shot.
Meanwhile, the Ministry added that more than 500,000 children here between the ages of three and 11 have been vaccinated against Covid-19 -- more than 7% of the total of this group of children, since this group started getting shots November 1.
While the Ministry noted that such children are in general less vulnerable to the most dangerous effects of Covid-19 – that is, compared to elderly people and other people with co-morbidities – nevertheless 253 children under 18 years old here have died of Covid-19, while more than 400,000 have been sickened by this virus, according to the Ministry.
Meanwhile, Medellin officially reported November 10 that 3.13 million people here have gotten Covid-19 shots, of which 1.46 million have now completed the two-dose regimen while another 1.64 million have gotten at least one shot.
As for all of Antioquia (including metro Medellin), more than 7.1 million shots against Covid-19 have been administered here, with 2.65 million having now completed their two-shot regimen, according to the Antioquia departmental government.
On more positive fronts, millions of doses of Covid-19 vaccines from various manufacturers have arrived or are arriving in Colombia this month, boosting crucial supplies to cities nearly everywhere here.
Among this new flood of supplies: 2.2 million more doses of Biontech/Pfizer vaccines, generously donated by the government of Germany.
As a result, Colombia now has ensured that it has enough vaccines already available here to meet its target of having 70% of its population vaccinated against Covid-19 by year-end 2021, according to the Ministry.
Meanwhile, the Ministry began offering reinforcement doses to populations 70-years and older since October, then added the cohort of those 60-to-69 since November 5.
A popular version of third-dose-reinforcement here involves administering AstraZeneca vaccines to those earlier vaccinated with Sinovac vaccine -- resulting in a statistically valid 97% effectiveness against dangerous levels of Covid-19 infection, according to the Ministry.
Cementos Argos 3Q 2021 Profits Jump 68% Year-on-Year
Tuesday, 09 November 2021 09:43 Written by Roberto Peckham
Medellin-based multinational cement/concrete giant Cementos Argos reported November 8 a 68% year-on-year hike in third quarter (3Q) 2021 net income, to COP$73 billion (US$18.8 million).
Comparable earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 2.4%, to COP$473 billion (US$122 million), “due mainly to the good performance of Colombia in a combination of better market environment and commercial efforts to increase the company’s exposure to the retail segment,” according to Argos.
Meanwhile, 3Q 2021 revenues rose 5.3% year-on-year, to COP$2.36 trillion (US$609 million).
“Strong market dynamics during the quarter led to like-for-like increases in 3Q 2021 consolidated cement and ready-mix volumes of 11.9% and 5.7% respectively versus 3Q 2020,” according to the company
Meanwhile, cement prices rose by 1.1% and ready-mix concrete by 2.3% year-on-year in the U.S. region and the Central America/Caribbean region saw cement prices jump 6.1%, according to the company.
As for the future, “approval of the US$1.2 trillion bipartisan infrastructure deal in the U.S. sets out a favorable environment for increased demand in Argos’ most relevant market,” according to the company.
“Argos holds a privileged position given its capacity to locally produce clinker and cement in each of the regions where we operate,” added Cementos Argos CEO Juan Esteban Calle.
“Additionally, the strategic geographic location of our network of ports and our own fleet of vessels facilitate the integration of the Cartagena plant --one of the most efficient in the Americas -- with the grinding stations and ready-mix operations in the U.S. and the Caribbean,” he added.
U.S. Region Results
The U.S. region operations saw cement sales volumes rise 11.6% while ready-mix concrete volumes rose 1.5% versus 3Q 2020.
“These results are particularly good taking into account the challenging weather conditions of places like Houston and Georgia, which exhibited during the quarter the highest number of bad weather days in the last four and five years, respectively,” according to Argos.
“These improvements in volumes are due mainly to the economic reactivation of the country, especially of the oil industry and the tourism sector, which are important drivers of economic growth in the regions where Argos operates in the U.S.,” the company added.
“Market dynamics continue to be positive in the residential segment. Housing starts and building permits increased during the quarter 8.7% and 6.2% year over year, confirming the continuation of the positive trend on this segment.”
Colombia Results
Meanwhile, the Colombia market experienced “full recovery of demand across the country, following the social unrest experienced on April and May. Argos’ dispatches of both cement and ready-mix evolved accordingly, increasing 14.4% and 9.3% respectively versus 3Q 2020,” according to the company.
“These improvements are associated to the commercial efforts deployed by the company to increase its exposure to the retail segment, in the case of cement, and to the improvement of the formal construction sector following the pandemic, in the case of ready-mix.
“In terms of pricing, the cement segment remained stable sequentially, while ready-mix prices decreased 1.9% versus 2Q21.
“The commercial dynamics of the market continue to improve. On residential construction, year to date sales of social [government-subsidized] and non-social housing grew 48% and 47% respectively year over year, and housing starts reached in July a new all-time high monthly figure, signaling the continuation of the positive trend on this segment.
“Additionally, the infrastructure pipeline of the country remains strong with projects such as Santana-Mocoa-Neiva, Malla Vial del Meta and Malla Vial del Valle [highways] which are scheduled to begin construction in 2022.”
Caribbean-Central America Region Results
In this region, “cement dispatches increased 10.1% year over year, mainly due to the 71.3% increase in the trading business. This positive performance of the trading segment is an indirect effect of the exports to the U.S., which have grown consistently compared to the previous year, accounting for 109,000 tons exported to the U.S. during the quarter and 272,000 tons during the entire year,” according to Argos.
“Volume evolution versus 3Q 2020 was steady in the case of Dominican Republic, positive in Honduras, Panamá and the French Guiana, and negative on the case of Haiti and Puerto Rico.
“Haiti was affected by a combination of social and political uncertainty, together with technical difficulties in the plant derived from the earthquake of mid-August.
“Puerto Rico was affected by a higher comparison base for 3Q 2020 derived from the pent-up demand following the quarantines experienced during the pandemic. All the other countries benefited from good commercial dynamics.
“Across the region, average prices increased 6.1% year over year, reaching the highest average quarterly price of the last two years, resulting from the combination of recovering local market and the increase in import parity prices,” the company added.
Cementos Argos now operates in 16 countries with favorable market positions in the U.S., Colombia, Caribbean/Central America and total annual capacity of 23 million tons of cement and 14.4 million cubic meters of concrete, according to the company.
Fabricato 3Q 2021 Profits Soar Year-on-Year
Sunday, 07 November 2021 10:11 Written by Roberto Peckham
Medellin-based textile giant Fabricato reported November 6 that its third quarter (3Q) 2021 net profit came in at COP$11.1 billion (US$2.86 million), a big reversal from the COP$3.3 billion (US$852,000) net loss in 3Q 2020.
As for the first nine months of 2021, net income reached COP$12.1 billion (US$3.1 million), up from a COP$22 billion (US$5.7 million) net loss for the first nine-months of 2020.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for nine-months 2021 jumped 386% year-on-year, to COP$41.5 billion (US$10.7 million), with EBITDA margin at 13.3%, up sharply from 3.2% in nine-months 2020.
“The textile operation accounted for 96% of total EBITDA,” according to Fabricato.
Revenues through nine-months 2021 are up 55% year-on-year, to COP$311 billion (US$80 million), the company added.
“So far this year, we have achieved positive operating profit and EBITDA every month,” Fabricato reveraled in its filing with Colombia’s Superfinanciera oversight agency.
Through September 2021, “we present the highest gross profit of the last seven years, at a value of COP$58 billion [US$15 million],” the company added.
Meanwhile, technological innovation is moving hand-in-hand with improved profitability, according to Fabricato.
“Recently, machines were acquired to recover cotton from used garments, and investments will be made aimed at optimizing/reusing the water and some chemicals used in the textile process, thus contributing to mitigating the environmental impact of disposal of textiles in landfills and contributing to the circular economy.
“They will be in operation in early 2022 with great environmental benefits and cost optimization,” according to the company.
Also boosting results: “We increased self-generation of energy with respect to 2019 in the same period of time by 30% with a positive impact on cost,” according to Fabricato.
“The focus on making the company profitable both in the textile operation and in the real estate activity continues, complemented by rigorous monitoring of spending efficiency.
“Despite the international crisis in the supply of raw materials, we have lowered the average lead times of the different production lines by between 15% and 20%, compared to 2019.
“The quality index of all production lines has been improved between 2 and 3 basis points, compared to 2019.
“Labor productivity measured in meters produced per capita rose 20% compared to 2019.
“The various structural factors that are manifested by global shortages and logistics restrictions worldwide will continue to arise and for this we have prepared ourselves with improvements and efficiencies in all areas of the company,” the company added.
Celsia 3Q 2021 Profits Jump 51.8% Year-on-Year; ‘Green’ Projects Expand
Friday, 05 November 2021 09:03 Written by Roberto Peckham
Medellin-based electric power giant Celsia – a division of Grupo Argos – on November 4 reported third quarter (3Q) 2021 net income of COP$105 billion (US$27 million), up 51.8% year-on-year.
Revenues in 3Q 2021 climbed 19.4%, to COP$978 billion (US$252 million), while consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) rose 23%, to COP$316 billion (US$81 million).
For the first nine months of 2021, revenues are up 9.8%, to COP$2.89 trillion (US$745 million), consolidated EBITDA is up 7%, to COP$966 billion (US$249 million) and consolidated net income is up 22%, to COP$309 billion (US$79.5 million), according to the company.
Meanwhile, capital spending so far in 2021 has hit nearlyCOP$1 trillion (US$257 million), according to the company.
On the “green energy” front, Celsia recently won a 225 gigawatt-hour renewable energy auction that will be supplied by the “Celsia Solar Escobal 6” solar photovoltaic farm to be built in Ibagué.
“Celsia Solar Escobal is part of our goal of having more than 25% of our installed power in non-conventional renewable energies,” added Celsia CEO Ricardo Sierra. “For next year we will multiply our capacity for unconventional renewable energy in Colombia by 18 times, compared to 2017.”
On a related “green” front, Celsia announced it has now cut the intensity of its CO2 emissions by 76% compared to 2015, while its similarly environment-friendly “ReverdeC” program -- aiming to protect vulnerable water basins -- has resulted in planting of 1.5 million trees over 4,452 hectares.
Éxito 3Q 2021 Profits More-Than-Double Year-on-Year
Thursday, 04 November 2021 09:43 Written by Roberto Peckham
Medellin-based multinational supermarket and dry-goods retailer Grupo Éxito announced November 3 that its third quarter (3Q) 2021 net income rose 144% year-on-year, to COP$126 billion (US$32.8 million).
Recurring earnings before interest, taxes, depreciation and amortization (EBITDA) rose 42%, to COP$353 billion (US$92 million), while sales rose 13.5%, to COP$3.98 trillion (US$1.04 billion), according to the company.
In Colombia, sales rose 14.3% year-on-year, to COP$3 trillion (US$782 million), “the best quarterly increase in recent years,” according to Éxito. Recurring EBITDA margin in Colombia was 8.7% over operating income -- 200 basis points more -- compared to the same period of 2020 and 8.5% so far this year.
“The higher levels compared to those reported in 2020 and 2019 reflect the operational efficiencies achieved in the midst of a recovery in consumption due to the economic reactivation” happening in Colombia, according to Éxito.
The jump in EBITDA is the result of Exito’s “strategy focused on innovation and omnichannel and optimal control of expenses in the three countries” where in operates: Colombia, Uruguay and Argentina.
In Colombia, electronic and direct commerce channel sales accounted for 12.2% of total sales, indicating that “virtual commerce is here to stay,” according to Éxito. Such sales in Colombia hit COP$344 billion (US$89 million) during 3Q 2021, the company added.
Meanwhile, “the innovative formats ‘Éxito Wow’ and ‘Carulla FreshMarket’ continue to be important levers of differentiation and competitiveness; the first represented 27.8% of Éxito's total sales and the second, 36.2% of Carulla,” according to the company.
“The diversification strategy of complementary businesses -- mainly financial and real estate -- continued to contribute to the result. The occupancy rate of shopping centers reached 92% in Colombia and 89% in Argentina in September.
“The gradual recovery of the economy in Uruguay was reflected in a higher recurring EBITDA margin of the operation in this country (10.1%), benefited by higher productivity and commercial margin and a strict control of expenses.
“In Argentina, Grupo Libertad’s sales in local currency grew 58.1%, above the high level of inflation, benefiting from the economic reactivation, better performance of the food business and the electronic and direct commerce channels that reached a participation in total sales of 2.7%,” the company added.
In Colombia, recurring EBITDA margin was 8.7% over operating income -- 200 basis points more -- compared to the same period of 2020 and 8.5% so far this year.
“The higher levels compared to those reported in 2020 and 2019 reflect the operational efficiencies achieved in the midst of a recovery in consumption due to the economic reactivation of the country,” according to Éxito.
“The economic reactivation in the three countries where Grupo Éxito operates favored an atmosphere of optimism and confidence,” resulting in a 15% jump in sales corporate-wide, the company added.
ISA 3Q 2021 Net Income Drops Sharply Year-on-Year
Thursday, 04 November 2021 08:38 Written by Roberto Peckham
Medellin-based multinational electric-power transmission builder-operator, highways concessionaire and telecom services provider ISA – now 51% owned by Colombia’s mostly state-owned Ecopetrol oil company – on November 3 reported third quarter (3Q) 2021 net income of COP$121 billion (US$31.5 million), down 78% from 3Q 2020.
Despite the profit decline, ISA’s earnings before interest, taxes, depreciation and amortization (EBITDA) actually rose 5.8% year-on-year, to COP$1.86 trillion (US$486 million), while operating revenues likewise rose 7%, to COP$2.86 trillion (US$747 million), according to the company.
The rise in operating revenues “was mainly due to the entry-into-operation of energy transmission projects, the consolidation of Orazul Energy Group at the end of the third quarter of 2020, the Ruta Costera [Colombia highway concession] project as of the fourth quarter of 2020 and PBTE [Brazil power transmission] as of March 2021, in addition to the increase in construction activity of concessions in Brazil and Chile,” according to ISA.
“When deducting the impact of the costs associated with the reprofiling of ISA InterChile’s debt and the change in the income tax rate in Colombia, accumulated income would total COP$1.6 trillion [US$418 million], 4.8% higher with respect to the same period of the previous year,” according to the company.
“ISA’s natural hedging strategy, where each company seeks to incur debt in the same currency in which revenues are received, resulted in the effect of exchange rate variations on net income for the whole year to be -1.1%,” the company added..
Among 3Q 2021 highlights:
1. More electricity transmission projects entering into commercial operation, including the Nueva Pan de Azúcar-Polpaico Reactive Compensation in ISA InterChile; the IE Itaipura in ISA CTEEP in Brazil; the Triple A Connection in Transelca (Colombia) and “72 reinforcements to the existing network in ISA CTEEP in Brazil, which together contributed total annual revenues of US$30 million,” according to the company.
2. ISA InterChile issued its first structured green bond on July 26, totaling US$1.2 billion, at a 35-year term and a 4,5% coupon. “This allowed the re-profiling of the existing debt of the Cardones-Polpaico project, lowering the financial cost and increasing the average life of the loan, thereby achieving a better match with the life of the asset. This is a key project in Chile, under the government's program of decarbonization and mitigation of climate change impacts,” according to ISA.
3. Construction of 25 energy transmission projects and 257 reinforcements in Brazil. “These will contribute total annual revenues of US$382 million once they are in operation,” according to ISA.
4. Winning a crucial environmental license for the UPME07-2017 Sabanalarga-Bolívar 500-kV transmission project in Colombia, thereby clearing the way for construction to begin.
EPM 3Q 2021 Net Income More-Than-Doubles Year-on-Year
Wednesday, 03 November 2021 10:33 Written by Roberto Peckham
Medellin-based utilities giant EPM announced November 2 that its third quarter (3Q) 2021 net income hit COP$2.8 trillion (US$730 million), up sharply from COP$1.3 trillion (US$337 million) in 3Q 2020.
Earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 28% year-on-year, to COP$5.5 trillion (US$1.4 billion), while EBITDA margin came-in at a healthy 30%, according to the company.
Meanwhile, 3Q 2021 revenues amounted to COP$18.2 trillion (US$4.7 billion) as the Colombian economy continues to recover from last year's Covid-19 depression.
As a result, “EPM maintains healthy and solid finances,” according to the company, 100% owned by the city of Medellin.
“The group's investments in infrastructure as of September were COP$2.7 trillion [US$704 million] of which COP$1 trillion [US$261 million] corresponds to the Hidroituango hydroelectric project.
“Through September, EPM has paid the municipality of Medellín COP$1.3 trillion [US$339 million] of the total COP$1.4 trillion [US$365 million] scheduled to be transferred during 2021."
Macroeconomic reactivation, relatively heavy rains in Colombia supporting its hydroelectric power output, lower operating costs and the lower impact of Covid-19 all boosted financial results, according to the company.
Net foreign-currency-exchange expense in 3Q 2021 was just COP$24 billion (US$6.3 million), 97% lower than the same period in 2020, “caused by the restatement of the debt in dollars associated with the accumulated devaluation of the Colombian peso of 11.72 % and a closing rate of COP$3,834.68 per US$1,” according to EPM.
On the other hand, accounts-receivable balances rose to COP$158 billion (US$41 million) and non-payment of utility bills rose to COP$159 billion (US$41.4 million), both resulting from the Covid-19 pandemic.
Despite those losses, Grupo EPM total assets rose 4% year-on-year, to COP$66.5 trillion (US$17.3 billion); liabilities rose 5%, to COP$38.5 trillion (US$10 billion), and shareholder equity rose 4%, to COP$28 trillion (US$7.3 billion), according to the company.
Financial debt for both EPM Group and its parent holding company was 41%. The Debt/EBITDA indicator for EPM Group closed at 3.74, better than the 4.41 ratio for 3Q 2020.
“Discounting the available cash reserve, the net debt/EBITDA indicator stood at 3.10 for the EPM Group and at 4.39 for the parent EPM,” the company added.
Bancolombia 3Q 2021 Net Income Soars 237% Year-on-Year
Wednesday, 03 November 2021 09:34 Written by Roberto Peckham
Medellin-based multinational banking giant Bancolombia announced November 2 that its third quarter (3Q) 2021 net income hit COP$943 billion (US$246 million), up 237% year-on-year.
Loan provision charges “decreased by 17.8% when compared to 2Q 2021 and by 69.4% when compared to 3Q 2020. This reduction is largely due to a better economic outlook in 2021, and to the fine-tuning in the provisioning models for the portfolio under credit reliefs,” according to the company.
As of September 30, 2021, Bancolombia's assets totaled COP$269 trillion (US$70 billion), up 1.6% year-on-year, “largely explained by the growth in the loan book,” according to the company.
“In 3Q 2021, gross loans grew 3.3% compared to 2Q 2021 and 5.8% compared to 3Q 2020. During the last 12 months, [Colombian] peso-denominated loans grew 7.5% and the dollar-denominated loans (expressed in US dollars) grew 4.2%.
“Gross loans denominated in currencies other than COP -- generated by operations in Central America, the international operation of Bancolombia Panamá, Puerto Rico and the US dollar-denominated loans in Colombia, accounted for 34.3% of the portfolio, and grew 4.2% in the quarter, when expressed in COP,” according to the company.
Meanwhile, “total reserves (provisions in the balance sheet) for loan losses decreased 0.9% during the quarter and totaled COP$16.69 trillion [US$4.3 billion] equivalent to 7.9% of the gross loans at the end of the quarter,” the company added.
At the end of 3Q 2021, Bancolombia's net investment portfolio totaled COP$26.8 trillion (US$6.98 billion), down 6.8% from the end of 2Q 2021 and 3.2% from the end of 3Q 2020.
“Bancolombia's consolidated solvency ratio under Basel III was 15.31% in 3Q 2021, while the basic capital ratio (Tier 1) was 11.76%. This leverage level is adequate considering the balance sheet risks and asset growth expectations,” the company added.
Net interest income totaled COP$2.9 trillion (US$756 million) in 3Q 2021, up 2.1% from 2Q 2021 and 4.9% above 3Q 2020.
“The total cost of funding extended its downward trend during 3Q 2021. Savings accounts and checking accounts continued to increase their share over the last 12 months. Savings accounts represented 36% in 3Q 2020, increasing to 42% of total funding by 3Q 2021.
“On the other hand, checking accounts represented 14% in 3Q 2020, rising to 16% of total funding in 3Q 2021. The annualized average weighted cost of deposits was 1.41% in 3Q 2021, falling 4 basis points compared to 2Q 2021 and 75 basis points compared to 3Q 2020,” the company added.
During 3Q 2021, net fees and income from services totaled COP$880 billion (US$229 million), up 9.1% compared to 2Q 2021, and up 15.2% compared to 3Q 2020, according to the company.
Loans overdue for more than 30 days totaled COP$9 trillion (US$2.3 billion) at the end of 3Q 2021, representing 4.4% of total gross loans, down from 4.6% in 2Q 2021
In the latest quarter, loan charge-offs totaled COP$854 billion (US$222 million). Coverage for loan losses was 167.2% at the end of 3Q 2021, down from 169.1% at the end of 2Q 2021.
“Provision charges (net of recoveries) totaled COP$514 billion [US$134 million] in 3Q 2021. The provision expense for the quarter is mostly related to the operation in Colombia.
“The gradual decrease [in bad-loan provisions] is associated with the macroeconomic impact and adjustments in the provisioning models relating to clients subject to credit reliefs, which jointly have caused a balance reduction from previous periods.
“Provisions as a percentage of the average gross loans were 1.0% annualized for 3Q 2021 and 2.2% for the last 12 months.
“Bancolombia maintains a strong balance sheet supported by an adequate level of loan loss reserves,” with allowances for loan principal totaling 7.4% of total loans at the end of 3Q 2021, “decreasing when compared to 2Q 2021,” the company added.
