SEC Form 6-K filed by BanColombia S.A.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the month of Aug 2024

Comission File Number 001-32535

Bancolombia S.A.

(Translation of registrant’s name into English)

Cra. 48 # 26-85

Medellín, Colombia

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F þ                    Form 40-F ◻

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):___

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(2):___

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ◻                    No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                    .

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BANCOLOMBIA S.A. (NYSE: CIB; BVC: BCOLOMBIA, PFBCOLOM) REPORTS FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2024.

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August 8, 2024. Medellin, Colombia – Today, GROUP BANCOLOMBIA announced its earnings results for the second quarter of 2024¹.

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1 This report corresponds to the interim unaudited consolidated financial information of BANCOLOMBIA S.A. and its subsidiaries (“BANCOLOMBIA” or “The Bank”) which Bancolombia controls, amongst others, by owning directly or indirectly, more than 50% of the voting capital stock. This financial information has been prepared based on financial records generated in accordance with International Financial Reporting Standards – IFRS. BANCOLOMBIA maintains accounting records in Colombian pesos, referred to herein as “Ps.” or “COP”. The financial information for the quarter ended June 30, 2024, is not necessarily indicative of the results for any other future interim period. For more information, please refer to the Bank's filings with the Securities and Exchange Commission, which are available on the Commission's website at www.sec.gov.

BANCOLOMBIA’s first IFRS financial statements will cover the year ending in 2015. CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS: This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties; consequently, there are or will be factors, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products by other companies, lack of acceptances of new products or services by our targeted customers, changes in business strategy and various others factors, that could cause actual results to differ materially from those indicated in such statements. We do not intend, and do not assume any obligation, to update these forward-looking statements. Certain monetary amounts, percentages and other figures included in this report have been subject to rounding adjustments. Any reference to BANCOLOMBIA or “The Bank” means Bancolombia S.A: together with its affiliates, unless otherwise specified.

Representative Market Rate, July 1, 2024, $4,184.04= US$ 1

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BANCOLOMBIA: Summary of consolidated financial quarterly results

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1.BALANCE SHEET

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1.1.Assets

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As of June 30, 2024, Grupo Bancolombia's assets totaled COP 352,199 billion, increasing by 4.5% compared to 1Q24. This increase was mainly due to growth in the loan portfolio, driven by commercial and the depreciation of the Colombian peso. Contrary to the previous quarter, there was a greater excess of liquidity, as evidenced by the increase in available cash.

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The Colombian peso depreciated by 8.0% against the US dollar during the second quarter of 2024 and appreciated by 0.7% over the last 12 months. The average exchange rate was 0.01% higher in 2Q24 compared to 1Q24, and 14.7% lower over the last 12 months.

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1.2.Loan Portfolio

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The following table shows the composition of Bancolombia loans on a consolidated basis by type and currency:

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In 2Q24, gross loans grew by 3.0% compared to 1Q24 (0.5% growth when excluding the exchange rate effect) and by 2.7% compared to 2Q23. Over the past 12 months, the peso-denominated portfolio grew by 3.6%, and the US dollar-denominated portfolio (expressed in USD) grew by 1.0%.

Operations in Banco Agricola in El Salvador, Banistmo in Panama, and BAM in Guatemala accounted for 26.4% of total gross loans balance for 2Q24. Meanwhile, gross loans denominated in currencies other than the Colombian peso, generated by operations in Central America, the international operation of Bancolombia Panama, Puerto Rico, and the US dollar denominated loans in Colombia, represented 32.9% of the total portfolio and grew by 7.8% (when calculated in USD) during the quarter.

Allowances for loan losses increased by 3.0% during the quarter, totaling COP 16,681 billion, equivalent to 6.2% of the gross loan portfolio at the end of the quarter.

When broken down by each operation, Bancolombia S.A. reports a 0.9% growth in the gross loan portfolio during the quarter, Banistmo 0.2% (calculated in USD), Banco Agricola 1.6% (calculated in USD), and Banco Agromercantil reports a decrease of 0.7% (calculated in USD). The commercial portfolio, especially in Colombia, was the main driver of the total portfolio growth, driven by the implementation of special credit lines designed to stimulate demand among mid-sized companies and corporates, followed by mortgage loans mainly in social housing.

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Net of FX, the consumer portfolio continued contracting during the quarter mainly by personal loans in Colombia. However, on a consolidated basis the balance increased 1.9% by the depreciation of the Colombian peso against the US dollar and the restatement of foreign subsidiaries balances. Banco Agricola, on the other hand, just as in the last quarter, is the only operation with a better dynamic in consumer disbursements, specifically unsecured loans. The decrease in the portfolio in Guatemala is mainly explained by the commercial portfolio.

For a more detailed explanation regarding coverage and portfolio quality, see section 2.4. Asset quality, provision charges, and balance sheet strength.

The following table summarizes Grupo Bancolombia's total portfolio

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1.3.Investment Portfolio

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As of June 30, 2024, Grupo Bancolombia's investment portfolio totaled COP 30,574 billion, increasing by 7.6% compared to 1Q24 and by 17.5% compared to 2Q23. Regarding investments in financial assets, there was an increase in debt securities and REPOS at Bancolombia S.A. Active liquidity positions increased due to a higher surplus in liquid assets compared to the previous quarter. At the end of 2Q24, the debt securities investment portfolio had a duration of 17.7 months and a yield to maturity of 9.3%.

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1.4.Goodwill and intangibles

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As of June 30, 2Q24, Grupo Bancolombia's intangibles and goodwill totaled COP 9,191 billion, increasing by 7.8% compared to 1Q24. This quarterly variation is mainly explained by the depreciation of the peso against the US dollar and the restatement of foreign subsidiaries balances. foreign subsidiaries.

1.5.Funding

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As of June 30, 2024, Grupo Bancolombia's liabilities totaled COP 311,994 billion, increasing by 4.2% compared to 1Q24 and by 3.6% compared to 2Q23.

Customer deposits totaled COP 257,869 billion (82.7% of liabilities) at the end of 2Q24, showing an increase of 5.3% compared to 1Q24. This is explained by higher deposits in sight accounts and time deposits and currency depreciation by the restatement of foreign subsidiaries balances. The net loan-to-deposit ratio was 97.5% at the end of 2Q24, lower than the 99.7% recorded in 1Q24, mainly due to the greater increase in deposits.

The deposit mix reveals a quarterly increase in time deposits, with the most significant growth in terms between 0 and 180 days. Sight deposits continue to be the main source of funding, with savings accounts constituting 39% of funding and checking accounts 12%. Debt securities increased due to the issuance in June of the 2034 subordinated bond for 800 million US dollars compensating the partial repurchase of the 2025 ordinary bond and the 2027 subordinated bond.

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Loans with banks decreased by 8.3% during the quarter, mainly due to second-tier lender loans contraction as part of the Group's liability management strategy.

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1.6.Shareholders’ Equity and Regulatory Capital

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Shareholders’ equity attributable to the owners of the parent company at the end of 2Q24 was COP 39,219 billion, increasing by 7.5% compared to 1Q24 and 7.3% compared to 2Q23. The increase is due to accumulated earnings during the quarter  and the restatement of foreign subsidiaries balances.

The solvency ratio of Grupo Bancolombia under Basel III was 12.60% in 2Q24, which was 110 basis points above the minimum level required by the Colombian regulator. The Tier 1 capital ratio to risk-weighted assets was 10.98%, 248 basis points above the minimum regulatory capital level (value to fully comply with the new capital requirements in the fourth year of the Basel III phase-in period) . The increase in solvency levels for the quarter is primarily due to retained earnings. The tangible capital ratio, defined as shareholders’ equity minus goodwill and intangible assets divided by tangible assets, was 8.53% at the end of 2Q24.

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(1) Technical capital is the sum of basic and additional capital, minus deductions ($10,459 MM for 1Q24 and $13,825 MM for 2Q24).

(2) Operational risk applies to 1Q23, 4Q23 and 1Q24 after the adoption of Basel III regulation.

(3) Capital adequacy is technical capital divided by risk-weighted assets.

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2.INCOME STATEMENT

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Net income attributable to equity holders of the parent company totaled COP 1,440 billion in 2Q24, or COP 1,511.28 per share (USD $1.56 per ADR). This income represents a 13.4% decrease compared to 1Q24, with higher provisioning expenses, increased operational costs, and impairment in associates and joint ventures as the main factors. The annualized return on equity (ROE) for Grupo Bancolombia was 15.3% for 2Q24 and 16.0% for the last 12 months.

2.1.Net Interest Income

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Net interest income totaled COP 5,187 billion in 2Q24, increasing by 0.5% compared to 1Q24. The slight growth in the balance is primarily due to a decrease in interest expenses. Interest income debt instruments and valuation on financial instruments was COP 543 billion, up 18.2% during the quarter. This variation is mainly due to the valuation of the public debt securities portfolio in Colombia and the decrease of interest income from Repos due to lower interest rates.

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Net Interest Margin

The annualized net interest margin for investments in 2Q24 was 2.6% despite a decrease in debt instruments and valuation interest income on the back of lower rates, impacting the group's annualized quarterly net interest margin, which decreased by 8 basis points from 7.14% to 7.05%.

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The annualized quarterly loan portfolio margin was 7.7%, 6 basis points higher compared to 1Q24, and 20 basis points lower compared to 2Q23. The lower loan portfolio yield was favorably offset by a decrease in interest expenses, therefore, resulting in a stable net income generation amid a moderate loan book growth and lower interest rates.

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(1) Net interest margin and valuation income on financial instruments.

Savings accounts increased by 4.4% compared to 2Q24 and checking accounts by 4.0%. The annualized weighted average cost of deposits was 4.89% in 2Q24, decreasing by 35 basis points compared to 1Q24.

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During the second quarter of the year, the Colombian Central Bank continued its monetary policy interest rate cuts that began in December 2023. This has benefited Grupo Bancolombia’s total financing cost, which started a downward trend from the last quarter of the previous year and shows a significant reduction in 2Q24 due to the gradual repricing of interest-sensitive liabilities.

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2.2.Fees and Income from Services

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Total fees and commissions during 2Q24 totaled COP 1,030 billion, increasing by 2.9% compared to 1Q24 and 3.2% compared to 2Q23.

Quarterly, debit and credit card fees, and commercial establishments, increased, banking services, and payments and collections, revealed higher revenues due to a higher volume of transactions and banking operations compared to the first quarter.

The bancassurance division is the line with the highest growth in fees due to increased fees from policy collection services and profit revenue share by policy distribution.

The higher commission expenses in the quarter are attributed to growth in banking correspondents and higher transactional volume leading to an increase in service fees to payment system and point-of-sale terminals suppliers, as well as higher royalty fees to credit-debit card franchises.

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2.3.Other Operating Income

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Total other operating income was COP 741 billion in 2Q24, growing 17.8% compared to 1Q24. Growth of other operating income is mainly due to better results from exchange rate derivatives in May and June, coupled with the positive investments results that are not included in the net interest margin. On the other hand, income from operating leases was COP 441 billion in 2Q24, a decrease of 3.9% compared to 1Q24 and an increase of 2.5% compared to 2Q23.

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2.4. Dividends received, and share of profits

Total dividends and other net income from equity investments in 2Q24 was COP -226 billion. This quarterly decrease is primarily due to impairment charges in associates and joint ventures according to market valuations conducted during the quarter resulting from the weakening credit cycle in Colombia.

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2.5.Asset Quality, Provision Charges and Balance Sheet Strength

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The principal balance for past due loans (those that are overdue for more than 30 days) totaled COP 13,503 billion at the end of 2Q24, representing 5.2% of the total gross portfolio, whereas 90-day past-due loans totaled COP 8,949 billion, and represented 3.4% of total gross loans. The 30-day ratio declined across all geographies in their local currency; however, due to the local currency depreciation, it closed the quarter with a slight increase in the balance on a consolidated basis. The 90-day ratio increased mainly due to SME and corporate loans in Colombia reaching past due, and consumer and mortgage loans deterioration in all countries except for El Salvador.

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The coverage, measured by the ratio of allowances for loan losses (principal) to PDLs (30 days overdue), was 112.1% at the end of 2Q24, up from 110.7% in 1Q24. The deterioration of the loan portfolio (new past due loans including charge-offs) during 2Q24 was COP 1,780 billion, largely due to the portfolio in Banistmo. The lower balance compared to 1Q24 is mainly due to the slower deterioration in the 30-day consumer portfolio in Colombia.

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Provisions charges (net of recoveries) totaled COP 1,619 billion in 2Q24, growing 23.1% compared to 1Q24. In general, the higher balance is mainly concentrated in retail companies from the mid-sized segment and construction and specific healthcare clients from the corporate segment. On the other hand, macroeconomic variables led to a release due to updated projections in Colombia.

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Provisions as a percentage of average gross loans were 2.5% annualized for 2Q24 and 2.4% for the last 12 months. Grupo Bancolombia maintains a strong balance sheet supported by an adequate level of loan loss reserves. Allowances (for the principal) for loan losses totaled COP 15,131 billion, or 5.8% of total loans at the end of 2Q24, increasing compared to 1Q24.

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The following tables present key metrics related to asset quality:

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*Mortgage loans that were overdue were calculated for past due loans for 120 days instead of 90 days.

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Stage 1. Financial instruments that do not deteriorate since their initial recognition or that have low credit risk at the end of the reporting period. (12-month expected credit losses).

Stage 2. Financial instruments that have significantly increased their risk since their initial recognition. (Lifetime expected credit losses).

Stage 3. Financial instruments that have Objective Evidence of Impairment in the reported period. (Lifetime expected credit losses).

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2.6.Operating Expenses

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During 2Q24, operating expenses totaled COP 3,288 billion, reflecting a growth of 3.4% compared to 1Q24 and 3.7% compared to 2Q23.

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The efficiency ratio was 48.8% in 2Q24 and 47.8% for the last 12 months. Personnel expenses (salaries, employee benefits and bonus plan payments) amounted to COP 1,348 billion in 2Q24, which represents an increase of 1.0% compared to 1Q24 and a decrease of 0.4% compared to 2Q23. This is explained by a reduction in bonuses while salaries increased due to the annual adjustment.

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General expenses increased by 5.2% for the quarter and 6.8% compared to 2Q23. Quarterly trends show stable labor expenses and an increase in general expenses due to growth in the rental business and technology fees in Nequi. Annually, the largest variation was in administrative expenses related to technology maintenance and licensing, primarily due to business transformation and cloud migration.

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As of June 30, 2024, Grupo Bancolombia had 33,887 employees, owned 851 branches, 6,101 ATMs, 34,658 banking agents, and served more than 32 million customers.

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2.7.Taxes

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Group Bancolombia income tax for 2Q24 was COP 363 billion, resulting in a lower effective tax rate when compared to the statutory tax rate in Colombia caused by the application of tax benefits in Colombia such as exempt income for social housing in mortgages and investments in productive fixed assets. Additionally, due to the tax benefits in Guatemala, El Salvador, and Panama, corresponding to exempt yields on government-issued securities. Finally, it is worth noting the

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earnings of the foreign subsidiaries with lower tax rates when compared to Colombia, which also contributed to a lower result.

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3.BREAK DOWN OF OPERATIONS

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The following tables summarize the financial statements of our operations in each country.

BANCOLOMBIA S.A. (STAND ALONE) – COLOMBIA

Bancolombia S.A.'s portfolio increased by 0.9% in 2Q24 and 2.2% over the last 12 months. Commercial loans grew by 1.3%, driving portfolio growth due to strong dynamics in the corporate segment and the internal strategy of offering competitive commercial rates in the market. The housing portfolio continues to show good performance and contributed to the growth of balances in Colombia. On the other hand, the consumer portfolio maintains the decline trend of recent quarters, contracting by 1.1% in the second quarter, primarily due to personal loans.

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In the funding structure, growth took place across all types of deposits, mainly driven by savings accounts, especially in June, both in retail and corporate segments. Time deposits presented a significant variation, in which online time deposits stood out with the largest increase.

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Bancolombia S.A.'s net income for the second quarter of 2024 was COP 1.4 trillion, representing a 17.6% decrease compared to 1Q24. Income from commercial loans decreased mainly due to a lower yield rate. The reduction in interest expenses, due to lower deposit rates, partially offset the income decrease. The increase in provisions during 2Q24 was due to higher expenses in corporate SMEs, and mid-sized companies, the latter primarily explained by specific clients experiencing deterioration. Operating expenses grew by 6.9% for the quarter, driven mainly by outsourcing fees and depreciation. Other operating income presented a significant decrease, primarily due to lower income from equity method and deterioration on associates and joint ventures. The net interest margin for Bancolombia S.A. in 2Q24 was 8.0%, and the annualized quarterly ROE was 15.4%.

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BANISTMO- PANAMA

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Banistmo’s portfolio closed the quarter with a 0.2% increase (calculated in USD). The commercial portfolio continues to show improved dynamics, growing by 0.7% in 2Q24, which offsets the decline in mortgage and consumer loans, the latter specifically concentrated in personal loans and credit cards. In the funding structure, deposits remained relatively stable, with a slight shift towards time deposits from retail to offset the reduction in savings and checking accounts.

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The net result for Banistmo in 2Q24 was a profit of COP 65.0 billion, representing a 39.8% decrease on a quarterly basis. Net interest income grew mainly due to investments income, while interest expenses increased slightly due to the higher weight of time deposits. Provisions increased during the quarter due to retail clients, with specific adjustments to portfolios identified with higher risk. Operational expenses increased compared to the previous quarter due to higher labor costs and increased payment of non-income taxes, mainly related to remittance payments abroad and property taxes. The net interest margin for Banistmo in Q2 2024 was 3.4%, and the annualized quarterly ROE was 5.5%.

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BANAGRICOLA- EL SALVADOR

Banco Agricola’s portfolio closed the quarter with a 1.6% increase (calculated in USD). As in previous quarters, Banco Agricola is the only operation maintaining consistent growth in the consumer portfolio for over 2 years. The unsecured credit product showed the best performance in originations. Commercial experienced a 0.9% increase in its portfolio (calculated in USD) in 2Q24, with growth concentrated in the corporate segment. In the funding structure, there was significant growth in checking accounts, primarily in mid-sized companies, while time deposits grew driven by retail clients. On the other hand, savings accounts decreased due to mid-sized companies.

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The net result for Banco Agricola in 2Q24 was a profit of COP 116 billion, representing a 17.0% increase compared to 1Q24. There was an increase in net interest income generation due to a combination of higher volume and higher rates from disbursements in commercial and consumer segments. Lower interest expenses also contributed to the growth in net balance. Net fees increased due to higher transaction volumes during the quarter. Net provisions for the period decreased mainly due to the prepayment of a corporate loan, offsetting higher write-offs and lower recoveries. General expenses increased during the quarter due to technology expenses focused on improving mobile banking, as well as adjustments and maintenance of fixed assets. Banco Agricola’s net interest margin for 2Q24 was 6.9%, and the annualized quarterly ROE was 21.6%.

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