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 Nov 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 THIRD QUARTER OF 2024.

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November 7, 2024. Medellin, Colombia – Today, GRUPO BANCOLOMBIA announced its earnings results for the third 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, October 1, 2024, $4,178.30= US$ 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 amounted to COP 353,433 billion, increasing by 0.4% compared to 2Q24. This growth was primarily driven by an expansion in the loan portfolio, particularly in the mortgage segment, as well as by an increase in investments in financial assets and cash resulting from excess liquidity, continuing the trend observed in the previous quarter.

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The Colombian peso depreciated by 0.7% against the US dollar during the third quarter of 2024 and 3.1% over the last 12 months. The average exchange rate was 1.5% higher in 3Q24 compared to 2Q24, and 9.8% 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 3Q24, the gross loan portfolio grew 0.5% compared to 2Q24 (0.3% growth excluding the exchange rate effect) and 4.6% compared to 3Q23. Over the past 12 months, the portfolio in Colombian pesos grew 2.7%, while the portfolio in U.S. dollars (expressed in USD) grew 8.4%.

Banco Agricola in El Salvador, Banistmo in Panama, and BAM in Guatemala represented 26.5% of the total gross loan portfolio balance for 3Q24. Meanwhile, the portfolio denominated in currencies other than the Colombian peso, generated by operations in Central America, offshore Bancolombia Panama, Puerto Rico, and the dollar-denominated portfolio in Colombia, accounted for 33.5% of the total portfolio and grew 2.3% (expressed in USD) during the quarter.

Allowances for loan losses decreased by 1.0% during the quarter, totaling COP 16,518 billion, equivalent to 6.1% of the gross loan portfolio at the end of the quarter.

Quarterly, Bancolombia S.A. grew its gross loan portfolio by 0.1%, while Banco Agromercantil grew by 3.6% (measured in USD). On the other hand, Banistmo decreased by 1.2% (measured in USD), and Banco Agricola decreased by 1.0% (measured in USD). The mortgage portfolio was the main driver of total portfolio growth, driven by the implementation of a rate reduction program for mortgage loans in Colombia. The commercial loan portfolio grew 0.5% in the quarter due to growth in BAM, offsetting the decline in other geographies.

In the consumer loan portfolio, operations in Colombia and Banistmo continue to experience a contraction trend, while Banco Agricola maintains growth driven by targeted origination strategies on retail clients, which have yielded adequate risk-adjusted returns. Additionally, BAM, which had been experiencing portfolio declines throughout the year, grew by 4.7% in 3Q24, mainly due to growth in credit cards.

For a more detailed explanation regarding loan portfolio coverage and quality, see Section 2.4: Asset Quality, Provision Charges, and Balance Sheet Strength.

The following table summarizes Grupo Bancolombia's total loan portfolio:

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1.3.Investment Portfolio

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As of September 30, 2024, Grupo Bancolombia's investment portfolio totaled COP 35,838 billion, reflecting a 17.2% increase compared to 2Q24 and a 32.4% increase compared to 3Q23. Active positions in liquidity operations rose due to higher liquid asset surpluses compared to the previous quarter. At the end of 3Q24, the debt securities investment portfolio had a duration of 16.5 months and a yield to maturity of 8.9%.

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1.4.Goodwill and intangibles

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As of September 30, 3Q24, Grupo Bancolombia's intangibles and goodwill totaled COP 9,271 billion, increasing by 0.9% compared to 2Q24. This quarterly variation is mainly explained by the depreciation of the peso against the US dollar and the restatement of foreign subsidiaries balances.

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1.5.Funding

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As of September 30, 2024, Grupo Bancolombia liabilities totaled COP 311,519 billion, decreasing by 0.2% compared to 2Q24 and increasing by 3.9% compared to 3Q23.

Customer deposits totaled COP 259,759 billion (83.4% of liabilities) at the end of 3Q24, reflecting a 0.7% increase from 2Q24, mainly due to time deposit inflows, particularly online time deposits from retail customers. The net loan-to-deposit ratio was 97.4% at the end of 3Q24, with minimal variation from the 97.5% registered in 2Q24.

The deposit mix shows a quarterly increase in time deposits, with notable growth in those maturing between 0 and 180 days. Sight deposits remain the primary funding source. Savings accounts grew over the quarter mainly on institutional clients, and account for 38% of total funding. Meanwhile, checking accounts decreased during the quarter and represent 12% of funding, while debt securities in issue declined due to maturities in local currency.

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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 3Q24 was COP 40,899 billion, increasing by 4.3% compared to 2Q24 and 9.0% compared to 3Q23. This increase is due to the accumulated profits in the quarter and the restatement of foreign subsidiaries balances.

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The total solvency ratio of Grupo Bancolombia under Basel III was 14.35% in 3Q24, standing 285 basis points above the minimum level required by the Colombian regulator, while the core equity ratio (Tier 1) to risk-weighted assets was 11.58%, 308 basis points above the minimum regulatory capital level (required to meet the new capital requirements in the fourth year of Basel III implementation). The increase in solvency levels for the quarter is mainly due to the issuance of the 2034 subordinated bond in June and retained earnings during the period. The tangible equity ratio, defined as equity minus goodwill and intangible assets over tangible assets, was 8.96% at the end of 3Q24.

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(1) Technical capital is the sum of basic and additional capital, minus deductions ($13,825 MM for 2Q24 and $13,478 MM for 3Q24).

(2) Operational risk applies to 3Q23, 2Q24 and 3Q24 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’s totaled COP 1,501 billion in 3Q24, or COP 1,560.77 per share (USD $1.49 per ADR). This income represents a 4.3% increase compared to 2Q24, highlighting lower loan provision expenses and reduced interest expenses as the main positive factors. The annualized return on equity (“ROE”) for Grupo Bancolombia was 15.0% for 3Q24 and 15.7% for the last 12 months.

2.1.Net Interest Income

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Net interest income totaled COP 5,153 billion in 3Q24, decreasing 0.7% compared to 2Q24. This decline is primarily due to a reduction in interest income, driven by lower interest rates on new loans and variable-rate portfolios, partially offset by a decrease in interest expenses. Total interest income from debt instruments and valuation of financial instruments reached COP 764 billion, representing a 40.8% increase for the quarter. This growth is mainly attributed to the strong performance of the investment portfolio, with all products yielding positive results, particularly forwards, options, and swaps.

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Net Interest Margin

The annualized net interest margin for investments in 3Q24 was 4.6%, increasing by 197 basis points compared to 2Q24 due to higher valuations of debt securities. The group’s quarterly annualized net interest margin decreased by 22 basis points, from 7.05% to 6.83%.

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The quarterly annualized loan portfolio margin was 7.16%, down by 53 basis points from 2Q24 and 40 basis points from 3Q23. The lower lending yield was partially offset by a decrease in interest expense, after a mild loan growth and lower interest rates.

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

Savings accounts increased by 0.5% compared to 2Q24, while checking accounts decreased by 1.8% compared to the same period. The annualized weighted average cost of deposits was 4.70% in 3Q24, decreasing by 19 basis points compared to 2Q24.

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During the third quarter of the year, the Colombia´s Central Bank continued to advance in its expansionary monetary policy with an additional 100 basis points of interest rate cuts during the period, which benefited the overall financing cost of Grupo Bancolombia. However, on the other hand, it negatively impacted interest income generation due to lower interest rates applied to new loan originations and the repricing of current loans tied to floating rates on portfolio.

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2.2.Fees and Income from Services

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Net income from commissions and other services for 3Q24 was COP 1,038 billion, decreasing by 0.3% compared to 2Q24 and increasing by 8.4% compared to 3Q23.

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In terms of the quarter, income from debit, credit cards, affiliated establishments and banking operations grew the most due to a higher volume of transactions compared to the second quarter. To a lesser extent, it's worth noting the improved performance of fiduciary activities due to higher volumes of assets under management in investment funds. On the other hand, the line that decreases the most is Bancassurance, due to the anticipation of income accrual recorded in the previous quarter, which reduces total fee income   this quarter.

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Similarly, the lower fee expenses during the period are primarily attributed to an anticipated accrual of fee expenses on the previous quarter related to the banking agents.

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2.3.Other Operating Income

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Total other operating income was COP 762 billion in 3Q24, representing a growth of 2.9% compared to 2Q24, primarily attributed to net foreign exchange. Meanwhile, operating lease income was COP 448 billion in 3Q24, an increase of 1.4% compared to 2Q24 and a decrease of 0.6% compared to 3Q23.

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2.4. Dividends received, and share of profits

The total dividends and other net income from equity investments in the third quarter of 2024 amounted to COP 92 billion. The quarterly increase is mainly attributed to a base effect related to a one-off recorded last quarter as per the recognition of impairment in associates and joint ventures due to the market valuation conducted in 2Q24.

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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 13,290 billion at the end of 3Q24, representing 5.1% of the total gross portfolio, whereas 90-day past-due loans totaled COP 9,023 billion, representing 3.4%. The 30-day ratio decreased across all operations, following the trend of the previous quarter, primarily due to the improved performance of the consumer portfolio in Colombia, which also positively impacted the 90-day ratio, breaking the increasing trend observed since the first quarter of 2023 and remaining stable for 3Q24.

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The coverage, measured by the ratio of allowances for loan losses (principal) to PDLs (30 days overdue), was 112.13% at the end of 3Q24, increasing from 112.05% in 2Q24. The deterioration of the loan portfolio (new past due loans including charge-offs) during 3Q24 was COP 1,469 billion. The lower amount compared to 2Q24 is mainly due to the slower deterioration rate as of 30 days in the consumer portfolio in Colombia.

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Provision charges (after recoveries) totaled COP 1,589 billion in 3Q24, showing a decrease of 1.8% compared to 2Q24. Overall, it is noteworthy that there was lower provision expense from retail and SME clients, along with the provisions releases due to model parameter updates.

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Provisions as a percentage of the average gross portfolio, quarterly annualized, was 2.37% for 3Q24 and 2.39% for the last 12 months. Grupo Bancolombia maintains a balance supported by an adequate level of reserves for overdue loans. Allowances (for the principal) for loan losses totaled COP 14,903 billion, or 5.7% of the gross portfolio at the end of 3Q24, decreasing compared to 2Q24.

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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 3Q24, operating expenses totaled COP 3,347 billion, representing a growth of 1.4% compared to 2Q24 and 3.2% compared to 3Q23.

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Efficiency was 47.7% in 3Q24 and 47.9% for the last 12 months. Personnel expenses (salaries, employee benefits, and bonuses) amounted to COP 1,412 billion in 3Q24, which represents an increase of 4.7% compared to 2Q24 due to the higher provision for bonuses reflecting better results so far this year, and 5.8% compared to 3Q23, which reflects the annual salary adjustment that is implemented differently across each geography.

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Meanwhile, general expenses decreased by 0.8% in the quarter and increased by 1.4% compared to 3Q23. The quarterly performance is primarily explained by the lower VAT provision associated with the operational and fee expenses under-execution. On an annual basis, the increase is mainly due to business transformation and cloud migration.

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As of September 30, 2024, Grupo Bancolombia had 33,888 employees, 852 branches, 6,121 ATMs, 34,604 banking agents, and more than 32 million customers.

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2.7.Taxes

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Grupo Bancolombia’s income tax for 3Q24 was COP 590 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 earnings of the foreign subsidiaries with lower tax rates when compared to Colombia, which also contributed to a lower tax.

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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. loan portfolio increased by 0.1% in 3Q24 and 2.4% over the last 12 months. The housing portfolio grew by 3.4% in the quarter and was the main driver of loan growth both in Colombia and on a consolidated basis. This strong performance is attributed to the interest rate reduction strategy that took effect in July 2024. The commercial portfolio, which had shown sustained expansion in the first half of the year, experienced a decline of 0.1%, primarily due to factoring and leasing products. Consumer loans continue to trend downward, contracting by 1.4% in the third quarter, with the largest decline seen in personal unsecured loans. In the funding structure, there was an increase in the volume of various

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types of deposits compared to the previous quarter, mainly driven by time deposits, particularly online time deposits. The growth in savings and checking accounts is largely attributed to the institutional segment.

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Bancolombia S.A.’s net income for the third quarter of 2024 was COP 1.6 trillion, representing a 12.6% increase compared to the second quarter of 2024. Interest Income from the commercial portfolio decreased due to a combination of lower volume and reduced yield rates. The decrease in interest expenses from lower deposit rates partially offset the income decline. The reduction in provision expenses during the third quarter of 2024 was the main factor contributing to the earnings growth and was due to improvements in retail and SMEs. Additionally, there was a provision release due to model parameter updates. Operating expenses decreased by 1.3% in the quarter, primarily driven by lower tax expenses. Other income due to a base effect relative to the previous period when there was a write-down on associated companies and joint ventures. Bancolombia S.A.'s net interest margin for the third quarter of 2024 was 7.7%, and the annualized quarterly ROE was 16.2%.

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BANISTMO- PANAMA

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Banistmo’s loan portfolio closes the quarter with a decrease of 1.2% (measured in USD). The commercial, housing, and consumer loan portfolios declined during the quarter, with consumer loans experiencing the largest decrease due to the dynamics of personal loans and credit cards. In the funding structure, there is a 0.5% decrease compared to the previous quarter, primarily due to a 4% decline in sights deposits, partially offset by an increase in time deposits, mainly in the corporate and government segments.

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Banistmo's net income for 3Q24 was a profit of COP 40.2 billion, representing a 38.2% decrease on a quarterly basis. Net interest income from the loan portfolio grew primarily due to treasury income, while interest expenses increased to a lesser extent due to the higher weight of time deposits. There was an increase in provisions during the period due to the update of model parameters, with the consumer portfolio seeing the largest increase. Operational expenses increased compared to the previous quarter due to higher labor costs from bonuses, partially offset by a decrease in general expenses due to lower payments for fees, taxes, and remittances abroad. The net interest margin for Banistmo in 3Q24 was 3.4%, and the annualized quarterly ROE was 3.2%.

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BANAGRICOLA- EL SALVADOR

Banco Agricola loan portfolio closed the quarter with a decrease of 1.0% (measured in USD). Contrary to previous quarters, we see a decrease in the commercial portfolio, primarily in the corporate segment, partially offset by an increase in the consumer portfolio, which continues the trend shown throughout the year, particularly in personal loans and credit cards. Deposits decreased during the quarter due to a reduction in checking accounts, mainly in the Mid-sized companies and corporate segments, while savings accounts increased in the Mid-sized companies’ business  segment and time deposits from individuals.

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The net result for Banco Agricola in 3Q24 was a profit of COP 129.8 billion, representing a 12.0% increase compared to 2Q24. There was an increase in net interest income generation due to higher portfolio yields during the quarter, which offset the increase in interest expenses resulting from the rise in the cost of time deposits and savings accounts. Net fees rose due to higher transaction activity during the quarter. Net provisions for the period decreased primarily due to the updating of parameters for commercial clients, in addition to the decline in that portfolio, which resulted in a release of provisions. Operating expenses increased mainly due to the rise in the bonus provision. The net interest margin for Banco Agricola in 3Q24 was 7.1%, and the annualized quarterly ROE was 21.8%.

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