2Q16 Earnings Results

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Investor Relations - 2Q16 Results

Second Quarter 2016: Highlights

  • Net interest income grew 37.2% compared to 2Q15
  • The net interest margin was 6.1% for the quarter
  • Net fees increased by 12.4% compared to 2Q15
  • Tier 1 increased during the quarter to 8.5%
  • Efficiency for 2Q16 was 48.2%, improving compared to 1Q16

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Net Income Profit before tax Net Income* 2Q16/2Q15 ∆ +23% 2Q16/1Q16 ∆ +13% 2Q16/2Q15 ∆ +6% 2Q16/1Q16 ∆ +84% 898 689 979 1,107 733 397 -210 -551 -145 -363 2Q15 1Q16 2Q16

Profit before Tax Income Tax Net Income Tax on Wealth

*Net income is profit before taxes minus taxes, minus minority interest, and minus discontinued operations

COP billion 3

Latin America: Macroeconomic Environment
  • During the past few years Latin America has been experiencing a period of poor economic growth. However, beyond this general trend there are significant differences across countries. While some economies will still be stuck in recession, others will grow below the overall trend and a last group will manage to expand above the average of the past decade.

  • In Central America, several economies are benefiting from low commodity prices and a stable growth in the US. For Colombia, we recently revised our FY 2016 growth forecast from 2.6% to 2.4%. We think that growth will be affected by contractive monetary and fiscal policy measures, which will coincide with a lackluster performance of private investment and a less solid internal consumption.

  • Regarding inflation, Colombia is the exception in a tendency of low price pressures. But as the second half passes and the economy cools off, we expect that inflation will moderate and close this year at 6.5%. With these prospects, our monetary policy call is that the Central Bank will remain on hold for the remainder of the year. In Guatemala inflation will remain within the target range and in dollarized economies prices pressures will be muted.

2.5

2

1.5

Position of selected economies in the business cycle

(standardized output gap index)

10%

9%

Consumer inflation and Central Bank's target range

(% change)

Range since 2011 2016 year end forecast Last Targetrange

8.97%

8.97%

1

0.5

0

-0.5

Colombia Chile

Guatemala El Salvador México

Panamá Perú

8%

7%

6.5%

6%

5%

4%

3%

2%

7.63%

4.62%

3.80%

6.82%6.83%

-1

-1.5

-2

Brasil

Argentina

1%

0%

-1%

-2%

-3%

1.75% 1.88%

-0.45%

0.8%1.3%

0.6%0.9%

-2.26%

-2.5

Sources: Grupo Bancolombia, , OECD, ECLAC, Bloomberg

Colombia Guatemala Panama El Salvador

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Bancolombia SA published this content on 26 September 2016 and is solely responsible for the information contained herein.
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