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Banco de Comercio Exterior de Colombia S.A. (BANCOLDEX)

by $202 million. About 36% of the loan book was in foreign currency at the end of 2008, compared with 32% at the end of 2007. The bank's investment assets made up 8% of its total assets in 2008.

The bank expects loan growth to continue in coming years, in line with an economic recovery. BANCOLDEX signed a US$650 million loan from the IADB for the support of competitiveness of local firms and borrowed US$300 million from CAF in 2008. It was also active in gaining funding through the local market in 2009.

2008 3.72

2007 3.45

2006 3.24

2005 2.70

2004 2.23

3.72 0.73 2.64 1.19 1.45 0.00 1.31 19.51 70.99 31.93 39.06 41.43 35.13 5.60

3.45 0.75 2.11 1.01 1.10 1.60 1.29 21.82 61.10 29.30 31.80 46.38 37.49

3.24 (0.01) 1.99 1.06 0.93 2.32 1.58 (0.40) 61.46 32.79 28.66 71.74 48.92

2.70 0.46 1.56 0.91 0.65 1.58 0.91 17.16 57.75 33.62 24.14 58.70 33.86 2.95

2.23 0.37 1.14 0.90 0.24 1.62 1.00 16.54 51.06 40.29 10.77 72.69 44.65 3.47

4.25

4.60

Profitability

BANCOLDEX's profitability compares well with other state-owned and private-sector Colombian financial institutions. The bank's net income rose by 36% in 2008, to COP72 billion, thanks largely to an increase in its net financial margin. Profitability, as measured by ROAA and return on average equity (ROAE), rose in 2008. ROAA grew modestly to 1.31% in 2008 from 1.29% in the previous year, while ROAE rose to 5.6% from 4.3% in the same period. In addition, net interest income rose as a share of average assets during 2008.

Table 3 Banco de Comercio Exterior de Colombia S.A./Profitability

  • --

    Year ended Dec. 31--

(%) Revenues/average assets

Net interest income/average assets Noninterest expense/average assets Net operating income before loan loss provisions/average assets

Net operating income after loan loss provisions/average assets

Loan loss provisions/average assets

Pretax profits/avergae assets Net income/average assets (ROAA) Noninterest expense/revenues

Net operating income before loan loss provisions/revenues

Net operating income after loan loss provisions/revenues

Loan loss provisions/revenues Pretax profits/revenues Net income/revenues

Net income/average adjusted common equity (ROAE)

Asset-Liability Management

BANCOLDEX seeks to match the maturities, repricing, and currency denominations of its assets and liabilities. Dollar-denominated loans are priced at LIBOR plus a spread, and are funded by external borrowings, also generally priced at LIBOR plus a spread. Peso-denominated loans are priced at a spread above the term deposit rate (the local commercial bank average cost of funds) and are funded by CDs, bonds, and shareholders' equity. Because the bulk of BANCOLDEX's lending is still largely medium-term in nature, the bank remains highly liquid. However, to ensure that the bank has adequate funds to meet its future obligations, its treasury department maintains a portfolio

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