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Here are the results of the March quarter, which I have copied from the banks web site:
Prospecto de Bolsa Marzo 1998
Due to the fact that on January 15,1998, Banco Industrial Colombiano
purchased 20% of Banco de Colombia1s shares to obtain a total of 51% of
total outstanding shares, the financial statements are presented as
follow: Below, you will find Banco Industrial Colombiano1s consolidated
financial statements excluding Banco de Colombia, followed by Banco de
Colombia1s unconsolidated financial statements for the first quarter
1998. At the end you will find the results for Banco Industrial
Colombiano1s financial statements consolidated with all its subsidiaries
including Banco de Colombia for the first quarter ended March 31, 1998.
April 28, 1998: Banco Industrial Colombiano S.A. (NYSE: CIB) announced
today consolidated results for the first quarter ended March 31,1998.
The financial information herein has been prepared on a consolidated
basis (except Banco de Colombia), in accordance with Colombian GAAP,
unaudited, in constant pesos as of March 31, 1998. Therefore, all growth
rates mentioned herein are shown on a real basis.
During the first quarter ended March 31, 1998, net income was Ps 8.35
billion, (US$ 0.12 per ADS) compared to Ps 7.91 billion (US$ 0.14 per
ADS) for the fourth quarter 1997, which represents a growth of 5.5% on
real terms. Compared with the first quarter 1997, the net income
decreased from Ps 16.97 billion to Ps 8.35 billion, primarily because of
the net monetary inflation adjustment and a decrease in the interest on
investment securities.
Due to the increase in interest rates in the Colombian financial market,
which affected negatively the mark to market of our investment
portfolio, and to our negative GAP, the net interest income after
provisions decreased 7.1% from Ps 47.7 billion in the last quarter 1997
to Ps 44.3 billion in the first quarter 1998. As a consequence net
interest margin decreased from 9.9% in the fourth quarter 1997 to 8.0%
in the first quarter 1998.
The Bank1s operating expenses in the first quarter 1998 decreased 6.0%
to Ps 47.6 billion from Ps 50.7 billion in the same period in 1997, and
compared to the fourth quarter 1997 it increased 1.3%.
Salaries and employee benefits, decreased 2.3% during the first quarter
1998 compared with the same period in 1997.
During the first quarter 1998, the administrative and other expenses,
decreased 9.0% and 17.7% compared with the first and last quarter 1997
respectively. This has been achieved thanks to the implementation of the
efficiency program which began at the end of 1996.
During the first quarter 1998, the net monetary inflation adjustment
increased 39.7% compared to the same period in 1997, due to the increase
of the total value subject to be adjusted by inflation, this increase
was a result of the capitalization, Ps 118.6 billion, and the dividends,
Ps 53 billion that were still accounted and not distributed.
Total assets increased 27.58% from Ps 2,776 billion in the first quarter
1997, to Ps 3,542 billion in the same period of 1998, as a result of an
increase in loan portfolio and investment securities. Investment
securities includes the acquisition of Banco de Colombia1s shares, at a
total value of Ps 586.8 billion. The total asset growth from year to
year without including Banco de Colombia1s shares was 6.4%.
The Bank1s loan portfolio increased from the first quarter in 1997 to
the first quarter in 1998, 16.6%, from Ps 1,468 billion to Ps 1,712
billion.
In the first quarter of 1998, the ratio of past due loans to total loans
improved, decreasing from 2.97% to 2.30%, compared with the same period
last year, which is well below the average ratio for the Colombian
Banking System.
Allowances for loans and accrued interest losses as a percentage of
nonperforming loans and past due loans were 102.17% and 66.56% for the
first quarter 1998, compared to 101.30% and 61.80% respectively for the
first quarter 1997.
The Bank1s total deposits increased 17.1%, to Ps 1,713 billion in the
first quarter 1998 from Ps 1,463 billion in the first quarter 1997.
Primarily due to the 35.9% growth in time deposits.The USD denominated
checking accounts from our off-shore subsidiaries rose 102.98% in the
first quarter 1998 compared to the same period 1997, to a total of Ps
114.6 billion.
During the month of January 1998, in order to buy the remaining 20% of
Banco de Colombia1s shares to complete the 51% acquisition, the bank
issued shares for a total of Ps 118.6 billion. This was the main reason
for the growth of 22.17% in the shareholders equity registered from the
first quarter 1997 to the first quarter 1998.
1. Defined as net interest income divided by monthly average
interest-earning assets.
2. Net income divided by monthly total assets
3. Net income divided by monthly average shareholders1 equity
4. Nonperforming loans are consumer loans that are past due 90 days or
more, commercial loans that are past due 120 days or more and mortgage
loans that are past due 120 days or more
5. "C", "D" and "E" loans include all nonperforming loans as well
consumer and commercial loans classified "C" which are considered
performing loans under the regulations of the Colombian Superintendency
of Banking
Net Interest Income
The Bank1s net interest income for the first quarter 1998 decreased 17.3
% to Ps 47.6 billion from Ps 57.6 billion in the first quarter 1997. Net
interest margin decreased to 8.0% in the first quarter 1998 from 9.94%
in the fourth quarter 1997 and 10.83% in the first quarter in 1997.
The components of the Bank1s consolidated net interest income before
provisions for loan and accrued interest losses are reflected in the
following table:
Interest Income
The Bank1s total interest income increased 1.8 % in the first quarter
1998 compared to the same period in 1997, mainly because of the increase
in interest on loans.
Interest Expense
The Bank1s interest expense increased 19.4 % in the first quarter 1998
compared to the same period in 1997, primarily due to a change in the
structure of funds and an increase in the interest rates.
Fees and Income from Services
The fees and income services during the first quarter 1998 remained
constant compared to the first quarter 1997.
Other Operating Income
Operating Expenses
Loan Portfolio
The Bank segregates its loan portfolio into corporate loans, retail
loans and mortgage loans. Corporate loans include loans to medium and
large corporations. Retail loans include loans to individuals, such as
personal lines of credit, automobile loans, credit card loans, and loans
to small companies with sales between Ps 100 million and Ps 3,000
million. Mortgage loans consist basically of loans to the Bank1s
employees.
Quality of the Loan Portfolio
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Banco de Colombia announced today results for the first quarter ended
March 31, 1998, on an unconsolidated basis, in accordance with Colombian
GAAP, unaudited and in constant pesos as of March 31, 1998.
During the first quarter ended March 31, 1998, net loss was Ps 8.9
billion, compared to Ps 7.5 billion profit for the first quarter 1997.
This decrease was a result of the sale of Banco de Colombia de Panama,
which represented a loss of Ps 4.0 billion, the mark to market of the
Corfinsura shares which accounted for a loss of Ps 6.4 billion, and a
decrease of Ps 7.63 billion in the interest on investment securities as
a result of the mark to market as of March 31 1998.
The operating expenses decreased 11.4% from Ps 77.3 billion in the
fourth quarter 1997, to Ps 68.5 billion in the first quarter 1998.
Comparing the first quarter 1997 with the first quarter 1998 the
operating expenses increased 4.3%.
Total assets decreased 3.8% from Ps 3,806 billion in the first quarter
1997, to Ps 3,661 billion in the same period of 1998, as a result of the
decrease in the loan portfolio.
In the first quarter of 1998, the ratio of past due loans to total loans
increased from 6.17% to 7.0%, compared with the same period last year.
Allowances for loans and accrued interest losses as a percentage of
nonperforming loans and past due loans were 107.2% and 65.4% for the
first quarter 1998.
The Bank1s total deposits increased 2.2%, to Ps 2,051 billion in the
first quarter 1998 from Ps 2,007 billion in the first quarter 1997.
Primarily due to the 14.1% growth in savings accounts.
Shareholders1 equity decreased 5.4% from the first quarter 1997, Ps
536.2 billion, to Ps 507.4 billion in the same period 1998 in real
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