Bancolombia 1Q 2024 Net Income Dips 3.1% Year-on-Year
Medellin-based multinational banking giant Bancolombia announced May 9 a 3.1% year-on-year decline in first quarter (1Q) 2024 net income, at COP$1.68 trillion (US$432 million).
Despite the year-on-year profits decline, the 1Q 2024 result nevertheless represents a 14.9% increase over 4Q 2023 — the immediate prior quarter — according to the company.
Meanwhile, annualized return on equity for the bank hit 17.4% in 1Q 2024 and 16.1% for the last 12 months, according to Bancolombia.
Gross loans grew 2.5% versus 4Q 2023, hitting COP$260 trillion (US$67 billion), thanks to “large commercial originations in all foreign subsidiaries,” according to the company.
Total provision charges for past-due loans fell 23.7% in 1Q 2024 versus 4Q 2023.
“An improvement in the retail portfolio, added to better macroeconomic conditions, explain the lower provisioning expense as a proportion of the average loan portfolio,” according to Bancolombia.
“Basic solvency stood at 10.45% and the total bank’s solvency ratio was 12.31% in 1Q 2024, adequately complying with the minimum regulatory requirements,” the company added.
As for Bancolombia’s digital-banking efforts, the company boast of having 8.6 million digital customers in its retail applications, along with 25.9 million accounts in its financial-transaction platforms: 6.4 million users in “Bancolombia a la Mano” and 19.4 million in “Nequi.”
Gross loans in 1Q 2024 grew 2.5% compared to 4Q 2023 but declined 2.6% compared to 1Q 2023.
“During the last 12 months, peso-denominated loans increased 5.4% and dollar-denominated loans (calculated in U.S. dollars) decreased16.5%,” according to the company.
“As of March 31, 2024, Banco Agricola operations in El Salvador, Banistmo in Panama and BAM in Guatemala represented 25.1% of total gross loans,” according to Bancolombia.
“Gross loans denominated in currencies other than Colombian pesos (COP) — generated by operations in Central America, the international operation of Bancolombia Panamá, Puerto Rico and the U.S. dollar-denominated loans in Colombia — accounted for 31.5% of the portfolio, and increased 5.7% in the quarter when calculated in U.S. dollars,” according to the company.
“In 1Q 2024, the bank’s loan book presented a significant reactivation after a decreasing path during all quarters of 2023. The better origination dynamics in commercial explain the increase in the quarter, both in Colombian pesos and especially in foreign currency.
“Adversely, retail loans reflected a sustained contraction as shown in 2023 for the bank, driven by lower appetite in Colombia and Panama amid a scenario of high interest rates,” the company added.
