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Bancolombia Profits Soaring Bancolombia Profits Soaring Source: Bancolombia

Bancolombia 3Q 2022 Net Income Soars 73% Year-on-Year

Published in Companies Written by  November 11 2022 font size decrease font size increase font size 0
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Medellin-based multinational banking giant Bancolombia announced November 11 that its third quarter (3Q) 2022 net income jumped 73% year-on-year, to COP$1.6 trillion (US$333 million).

Gross loans in 3Q 2022 rose 23.7% year-on-year, to COP$260 trillion (US$54 billion). “When excluding the foreign-exchange effect [that is, the declining value of the Colombian peso versus the U.S. dollar], the loans increase during the last twelve months was 15.8%. Commercial and consumer segments presented a dynamic activity, growing at 23.4% and 26.4%, respectively,” according to Bancolombia.

“Customer deposits totaled COP$238 trillion [US$49.5 billion], an increase of 25.3% compared to 3Q 2021. When excluding the foreign-exchange effect, the increase during the last twelve months was 16.0%. Savings accounts and time deposits grew 23.4% and 36.5%, respectively, compared to 3Q 2021,” the company added.

As for outstanding past-due loans, “30-day past due loans stood at 3.6% and 90-day past due loans at 2.43%. Total provision charges, net for 3Q 3022 were COP$1.17 billion [US$24 million], which indicates a lower release compared to 2Q 2022 and higher provisions in the consumer and commercial portfolio in line with the growth of the loan book,” according to Bancolombia.

As for its digital strategy, “Bancolombia shows constant growth in line with 2021 results. As of September 2022, the bank has 7.3 million active digital customers in the retail app, as well as 20.6 million accounts in its financial inclusion platforms -- 6.4 million users in ‘Bancolombia-a-la-Mano’ and 14.2 million in ‘Nequi,’” according to the company.

“Operations at Banco Agricola in El Salvador, Banistmo in Panama and BAM in Guatemala represented 29.2% of total gross loans for 3Q 2022.

“Likewise, the gross loans denominated in currencies other than 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 37.5% of the loan portfolio, an increase 13.2% (when expressed in COP), as well as 2.4% (expressed in U.S. dollars),” according to the company.

“During 3Q 2022, the loan portfolio at a consolidated level continues with good dynamism in all geographies, consistent with the trend of the last 12 months. Growth in commercial and consumer is remarkable.

“Colombia reported the highest quarterly growth of 4.3% in loan portfolio for 3Q 2022, mainly driven by the commercial, consumer and mortgage portfolio.

“Regarding loan book share, all segments remained relatively stable during the quarter. Colombia is closely followed by the Banistmo operation, which presents an increase of 4.3% (calculated in U.S. dollars), due to the positive dynamics of the commercial portfolio, which grew 8.2% for the quarter and continues to be the largest share in the loan portfolio.

“Banco Agricola grew 2.3% (calculated in U.S. dollars), with a 3.6% growth in consumer loans, which continues to increase its share to 41% of the loan portfolio. Commercial has shown moderate growth but maintains the largest share of the portfolio.

“Banco Agromercantil reports a 0.5% consolidated growth in U.S. dollars, where the consumer portfolio stands out with an increase of 10.4% during the quarter, in line with the good performance experienced since 2021,” the company added.

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