table of contents - Banco GNB Sudameris

Transcription

BANCO GNB SUDAMERIS S.A. and SUBSIDIARIES
Notes to the Consolidated Financial Statements
June 30, 2014 and 2013
(Amounts in millions of Colombian pesos)
(1) Reporting Entity
Banco GNB Sudameris S. A. (“the Parent”) is a stock corporation incorporated by Public Deed 8067 of
December 10, 1976, Notary 5, Bogota D.C. According to its Articles of Incorporation, the Parent's legal
existence will expire on January 1, 2076, but this term may be reduced by dissolution or increased by
extension. The business of the Parent is to perform all operations and enter into all contracts permitted for
commercial banks, subject to the requirements and limitations of Colombian law.
Financial Superintendency (the “Superintendency”) Resolution 3140 of September 24, 1993 renewed the
Parent’s operating license. The latest amendments to Articles were an exemption from a requirement of the
authorization of a shareholders´ general meeting for operations with related parties to guarantee, endorse or
otherwise support operations of affiliates in Colombia or abroad (Deed 2605 of April 21, 2014, Notary 13,
Bogota).
Other significant changes to its Articles have been:
Acting on Superintendency Circular 054/2008 and its recommendations in Communication 2008017272-0040000 and other matters within the competence of the shareholders, the Parent amended its Articles as
required (Deed 3725 of April 22, 2009, Notary 72, Bogota)
Banco Sudameris Colombia absorbed Banco Tequendama S.A., which was then dissolved but not liquidated
(Deed 6432, June 29, 2005, Notary 29, Bogota).
Change of name from Banco Sudameris Colombia S.A. to Banco GNB Sudameris S.A. authorized to use the
name Banco GNB Sudameris S.A. without losing its nature as a stock corporation. (Deed 6520, Notary 29
Bogota, June 29, 2005).
The Parent increased its capital from $40,000 to $50,000 divided into 125 million nominative shares of $400
(pesos) each, with a corresponding amendment to Article 5 (Deed 6011, Notary 29, Bogota, May 23, 2006)
Articles 25(a), 29, 31 and 32 were amended to suppress the appointment of personal alternates for the
principal Directors, as required by Article 44 of Law 964/2005 (Deed 4679, Notary 29 Bogota, April 2, 2007).
The Parent´s authorized capital was increased to $75,000 million, divided into 187,500,000 shares of $400
par value each (Deed 1029 of March 5, 2013, Notary 13, Bogotá)
The Parent’s Parent is Gilex Holding BV, Netherlands incorporation with registered offices at Herikerbergweg
238, Luna Arena (11001CM), Amsterdam Zuidoost, Netherlands.
The Parent’s registered offices are in Bogota, and there are the following offices: Head Office, 19 branches,
26 agencies, 5 satellite agencies, 8 cash desks and 45 collection points, 4 “super-service points” for public
services, 2 payment points, 2 enrolment points and 23 sales points for Payroll Instalment Loans.
At June 31, 2014 there were 1,028 full-time employees and 76 temporary staff.
Subsidiaries in Colombia
There are 6 subsidiaries in Colombia, all with registered offices in Bogotá.
(continúa)
2
BANCO GNB SUDAMERIS S.A.
Notes to the Financial Statements
Affiliates:
Servitrust GNB Sudameris S.A.,
Sociedad al Servicio de la Tecnología y Sistematización Bancaria Tecnibanca S.A. -Servibanca S.A.
Servivalores GNB Sudameris S.A. Comisionista de Bolsa,
Servitotal GNB Sudameris S.A.,
Banco GNB Colombia S.A.
Subsidiary:
Servivalores GNB Sudameris S.A.
This company was incorporated by Deed 767 of March 14, 2003 as a securities broker on the Colombian
stock exchange BVC, authorized by Superintendency Resolution 133 of March 11, 2003; it may also trade for
its own account, manage securities for its customers, acts as intermediary in placements, and finances the
acquisition of securities, amongst other things.
Servitrust GNB Sudameris S.A. is a private stock corporation incorporated by Deed 3847 of July 9, 1992
Notary 18, Bogota. It is a general trust company in the financial services sector, and may undertake any
business permitted by local regulations.
Sociedad al Servicio de la Tecnología y Sistematización Bancaria Tecnibanca S.A. – Servibanca S.A. – is a
Colombian stock corporation in the business of automation and modernization of banking and financial
services and operations to provide, dispense, pay and clear cash etc. Superintendency Resolution 872 of
May 25, 2006 required organizations engaged in low-value payment systems to adopt the Uniform Plan of
Accounts (PUC) of Resolution 3600/1998.
Servitotal GNB Sudameris S.A. is a stock corporation incorporated by Deed 7177 of December 26, 2012
engaged in technical and administrative services, IT service and services such as the definition, analysis,
design, construction, configuration, certification, testing, implementation, support and maintenance of
software and hardware for ICT.
This subsidiary has not yet commenced operations.
This is a bank, incorporated by Deed 7703 of December 31, 1976, Notary 76, Bogotá, licensed to undertake
all business open to “credit establishments” and subject to related regulations and restrictions in Colombia-.
Fiduciaria GNB S.A.
This is a private trust company in the financial services sector incorporated by Deed 5564 of November 12,
1981, Notary 7, Bogotá, licensed to undertake all kinds of business open to trust companies, and subject to
related regulations and restrictions in Colombia.
The national subsidiaries operate with the following number of employees:
Subsidiary
Servitrust GNB Sudameris S.A.
Servibanca S.A.
Servivalores GNB Sudameris S.A.
Fiduciaria GNB S.A.
Payroll
Temporary Services
31
60
13
494
54
3
3
0
66
4
Total
652
The Colombian affiliates thus have 652 employees and 76 temporary staff.
76
(Continued)
3
Subsidiaries outside Colombia
Colombian Superintendency Letter 2013002611-080 of July 8, 2013 authorized Banco GNB Sudameris S.A.
(the Parent) to acquire the shares of HSBC Bank Peru S.A. and HSBC Bank Paraguay S.A. Peruvian
Superintendency letter SBS 5378-2013 of September 6, 2013 and Banco Central de Paraguay Resolution 19
(Minute 74) of October 24, 2013 clarified by Note SBSG 01484/2013 of November 7, 2013, authorized the
acquisitions of the shares of the HSBC banks in Peru and Paraguay, respectively.
The Parent therefore, on October 4 and November 29, 2013 proceeded to acquire the Peruvian bank, now
Banco GNB Peru, and the Paraguayan bank, now GNB Bank Paraguay S.A. with 670,551,999 and 3,016
shares and one Note respectively representing 99.99% and 99.96% of their respective outstanding shares.
Acquisition of subsidiaries outside Colombia
The following were the balances acquired in the above operations:
Description
New soles
04-oct-13
a
Banco GNB Peru S.A. (1)
Sol/US$
Acquired in US$
FX-rate
equiv.
04-oct-13
a/b
b
Assets
S/. 4,171,069,321
Liabilities
S/. 3,772,852,346
Equity
S/. 398,216,975
(1)
(2)
2.779
Banco GNB Paraguay S.A. (2)
Balance in guaranies
Guaraní/US$
Acquired in US$
31-oct-13
FX-rate
equiv.
c
31-oct-13
c/d
d
US$ 1,500,924,549
Gs. 3,292,161,804,444
US$ 1,357,629,488
Gs. 2,997,410,663,689
US$ 143,295,061
Gs. 294,751,140,755
US$ 744,496,111
4,422.000
US$ 677,840,494
US$ 66,655,618
Balances of Banco GNB Peru S.A. on October 4, 2013.
Balances of Banco GNB Paraguay S.A. on November 30, 2013.
Banco GNB Peru S.A.
This is a Peruvian financial institution incorporated by a Public Deed 22 of November 30, 2006 Notary
Zumilda A. Narvaja, registered as No. 11877589 in the Lima Business Register; it was authorized to operate
as a “multiple bank” by Superintendency Resolution SBS 537-2006 of April 28, 2006.
The Parent´s operations are basically financial intermediation as permitted to “multiple banks” regulated by
the Superintendency under the Parenting Law (No. 26702), which is the statute regulating private banking
and insurance activities. The Parent is licensed to take deposits from the public and invest them and its own
capital in loans and securities, to grant guarantees by endorsement and sureties, engage in financial leasing
operations, financial intermediation, banking services etc.
The Parent began as HSBC Bank Peru S.A., as part of HSBC´s plan to expand in the region. After a global
review of May 11, 2012, HSBC announced the sale of the subsidiaries in Colombia, Peru, Paraguay and
Uruguay to GNB Sudameris S.A.
On October 4, 2013 Banco GNB Sudameris acquired 99.99% of the HSBC Bank Peru S.A. shares (today
Banco GNB Peru).
With the authorization of Superintendency Resolution SBS 5386-2013, a General Meeting of April 16, 2013
changed the name from HSBC Bank Peru S.A. to Banco GNB Peru S.A.
(Continued)
4
The registered offices of the Parent are at Calle Begonias 415 p. 22 Urbanización Jardín, San Isidro, Lima. At
June 30, 2014 it had a Head Office, 18 Agencies in Lima and the provinces. On that date it had 789
employees (754 payroll, 1 temporary and 34 internships)
Banco GNB Paraguay S.A.
This is a Paraguayan stock corporation which started operations in 1920 as the first international bank in the
country, a branch of Banco de Londres y Rio de la Plata. In 1985 it became the Paraguay Branch of Lloyds
Bank, and subsequently the Paraguay Branch of Lloyds TSB Bank in 2000. The operation was acquired by
HSBC in May, 2007 and became HSBC Bank Paraguay S.A. On November 29, 2013, after receiving
regulatory approvals, Banco GNB Sudameris acquired 99.96% of the outstanding shares.
The Paraguayan Central Bank issued Resolution 19 in Minute 74 of October 24, 2013, authorizing the
change of name to Banco GNB Paraguay S.A., and the change was agreed at an Extraordinary Meeting of
Shareholders on November 29, 2013 (Minute 12).
The Paraguayan Banking Law (Law 861) and regulations (and the Civil Code as otherwise applicable) permit
banks to take in local and foreign currency sight and term savings and checking account deposits, place
notes and bonds in local and foreign currencies and issue negotiable term deposit certificates; they may
discount, buy and sell term trade bills and grant loans, etc. – all as locally regulated.
At June 30, 2014 the Parent has a Head Office and 6 agencies in Asunción and in the provinces. On that
date there were 194 employees and 1 external employee on the payroll and 88 outsourced temporary staff.
At June 30, 2014 and 2013 the assets, liabilities, equity and results of the Parent and subsidiaries, and the
Parent´s interest in the latter, were as follows:
June 30, 2014
Banco GNB
Sudameris S.A.
Assets
Liabilities
Equity
15,076,303
13,850,579
1,225,724
Parent interest
In Subsidiaries
Interest of Gilex Holding
B.V.in Subsidiaries
Servitrust GNB
Sudameris S.A.
Servibanca
S.A.
Servivalores GNB
Sudameris S.A.
Banco GNB
Paraguay S.A.
Banco GNB
Peru S.A.
28,940
8,173
20,767
93,658
31,292
62,366
31,340
781
30,559
1,455,696
1,329,990
125,706
2,853,882
2,585,897
267,985
94.89%
88.50%
94.99%
99.96%
99.99%
Net
elimination
Net total
Consolidated
(560,916)
(71,017)
(489,899)
18,978,903
17,735,695
1,243,208
3.02%
June 30, 2013
Banco GNB
Sudameris S.A.
Assets
Liabilities
Equity
Parent interest in subsidiaries
Interest of Gilex Holding B.V. in
Subsidiaries
12,709,266
11,704,035
1,005,231
Servitrust GNB
Sudameris S.A.
Servibanca
S.A.
Servivalores GNB
Sudameris S.A.
41,879
20,414
21,465
98,435
40,413
58,022
31,818
1,128
30,690
94.9%
3.02%
88.5%
94.9%
Net
elimination
(115,282)
(5,145)
110,137
Net total
Consolidated
12,766,116
11,760,845
1,005,271
The affiliate Servitotal GNB Sudameris S.A. does not consolidate because it is not subject to
Superintendency supervision. It has not started activities yet.
(Continued)
5
Comparability
The financial statements at June 30, 2014 correspond to the consolidation of Banco GNB Sudameris S.A.
and subsidiaries in Colombia, plus two subsidiaries outside Colombia (the Parents in Peru and Paraguay). At
June 30, 2013 there were no subsidiaries outside Colombia.
(2) Summary of Accounting Policies
a. Basic Accounting Policies
The accounting policies and the preparation of the financial statements of the Parent and
Subsidiaries are in accordance with accounting standards generally accepted in Colombia, as
established by the Financial Superintendency.
Figures for the Subsidiaries outside Colombia were homogenized so that they became equivalent to
accounting practices generally accepted in Colombia and Colombian Superintendency’s instructions.
The financial statements of the Parent follow the requirements of the Colombian Commercial Code
and include the financial statements of subsidiaries in Colombia under Colombian Superintendency
supervision and subsidiaries outside Colombia in which there is a direct or indirect interest of 50% or
more of outstanding shares. Incomes, expenses, assets, liabilities and equity of the subsidiaries are
included appropriately in the consolidated financial statements after eliminating intercompany items
and homogenizing accounts by establishing equivalent classifications.
Substantial variations in uniformity
Consolidation requires that equivalent classifications be established so that all items satisfy
accounting practices generally accepted in Colombia.
The financial statements of subsidiaries outside Colombia are expressed in their local currencies:
Country
Peru
Paraguay
Currency
New sol
Guarani
Following Colombian Superintendency Circular 100/1995 Chapter X, the financial statements are reexpressed as follows: The Balance Sheet is converted at the closing rate the statement of earnings
at an average rate; and capital at the historic rate. The following rates or factors were used at June
30, 2014.
June 30, 2014
Conversion of financial statements – subsidiaries outside Colombia
Balance sheet
Earnings statement
Capital
Peru *
2.796
2.796
2.789
Paraguay *
4,384.000
4,384.000
4,425.670
Peru **
1,881.19
1,958.58
1,945.23
Paraguay **
1,881.19
1,958.58
1,959.76
* Local currency/US$ factor
** US$/Col$ factor
The Parent established equivalences for accounts and homogenized the accounting practices
generally accepted by the subsidiaries outside Colombia to the Colombian Superintendency´s
(Continued)
6
regulations, principally where items might affect the structure of the consolidated financial
statements, such as the allowances, property and equipment and their depreciation.
Allowances
For the period January-June 2014 additional allowances were made for $4,464 in Banco GNB Peru
S.A. and for $2,835 in Banco GNB Paraguay S.A. At June 30, 2013 there were no subsidiaries in
Peru or Paraguay. The risk classification methods to the loan portfolios and the method for
calculating allowances in subsidiaries outside Colombia, developed by the Parent and approved by
the Colombian Superintendency were applied.
b. Statement of Cash and Cash Equivalent Flows
Cash flows are prepared using the indirect method. Money-market asset positions are considered to
be cash equivalents for this purpose.
c. Money market asset and liability positions
Money Market operations include repos, simultaneous operations and interbank funds:
Ordinary Interbank Funds
These are funds placed or received by the Parent and Subsidiaries directly with another financial
entity, with no agreement to transfer securities or loans. They are current business operations at no
more than 30 calendar days, designed to use surplus liquidity or make up liquidity deficits, including
overnight operations with banks outside Colombia using Parent and Subsidiaries funds.
Interest yields on these operations are credited to earnings.
Repos
In a repo, the Parent and Subsidiaries acquire or transfer securities in exchange for cash, also
committing itself to transfer to, or re-acquire from, the counterpart that same day or later (but not
more than a year later), with securities of the same kind and characteristics, at a given price.
The initial amount may be calculated at a discount from the market value of the securities; in the
course of the operation the securities initially traded may be replaced by others, and restrictions may
be set on the mobility of the securities involved.
Yields are calculated exponentially over the life of the operation and are accrued in the earnings
statement.
Securities transferred in the operation are recorded in Debtor or Creditor Contingency accounts,
depending on whether the operation is an asset or liability transaction.
Commitments under Simultaneous Operations
Here, the Parent or a Subsidiary acquires or transfers securities in exchange for cash with the
simultaneous commitment to re-transfer or re-acquire them the same date or later at a defined price
for securities of the same kind and characteristics.
(Continued)
7
In these operations, no initial discount from the market price, and no substitution of the original
securities, is allowed; nor may restrictions be placed on the mobility of the securities.
Yields accrued by the acquirer and paid by the seller are recorded here as a cost of the operation
over its term.
The difference between present value (cash delivered) and future value (final transfer price) is a
financial yield, calculated exponentially over the term of the operation, and is recorded in the
earnings statement as and when accrued.
The securities are recorded in Debtor or Creditor Contingent accounts depending on whether the
operation produces an asset or a liability.
Commitments under short positions
Short positions arise when the Parent or Subsidiary transfers ownership of securities previously
obtained through a commitment to transfer them in a repo or simultaneous operation.
The account records the financial obligation originating in a short position by the party initially acting
as the acquirer (asset simultaneous operation) in favor of the initial disposer in the simultaneous
operation for the fair price of exchange of the security object of the transaction, recorded initially as in
a Creditor Memorandum Account. When the amount of the short position differs from the fair price of
exchange, this difference is recorded as a profit or a loss in the earnings statement.
Daily, the obligation recorded in the liabilities section should be valued and recorded at market price
or updated to the fair price of exchange, depending on the nature of the security and parameters set
in current regulations for the valuation of financial investments classed as “trading” and the effect is
reflected in the earnings statement.
There is a credit for the value of the financial obligation and any increase in the fair price of
exchange, and a debit for payment of the obligation and any fall in the fair price of exchange.
d. Investments
This account includes investments acquired by the Parent and Subsidiaries for the acquisition of
direct or indirect control of a company in the financial sector or engaged in services, to maintain a
secondary liquidity reserve, or to meet requirements of law or regulation, or solely to eliminate or
reduce market risk affecting assets, liabilities or other items in the financial statements.
The valuation of investment basically exists to calculate, book and disclose a value or fair price of
exchange at which a security can be traded on a given date, depending on its particular
characteristics and on prevailing market conditions.
Up to March 3, 2013 investments were valued on the basis of information supplied by Infoval, a
system that reports rates or prices for the valuation of portfolios on the Colombian securities
exchange BVC
As of March 4, 2013, Chapter XVI of Title I of the Superintendency´s Legal Circular came into effect
in relation to the provision of prices and the valuation of investments, and the Parent was required to
contract an official Price Supplier to value each segment of the market for a minimum of one year.
The Supplier is required to supply information on the valuation of investments in each segment
(Continued)
8
(prices, rates curves, margins etc.) following the parameters of Chapter I of the Superintendency
Circular. The Parent contracted INFOVALMER S.A to supply the official prices of all its investments
Investment are classified, evaluated and recorded as required by Chapter I of Superintendency
Circular 100/1995, of which the following is a summary:
Classification
Term
Trading – debt
securities
Short term
Characteristics
Valuation
Recording
Acquired to make profits from
short-term price fluctuations.
Uses prices determined by the
Price Supplier.
The difference between book and
market value is charged or credited to
the value of the investment with a credit
or charge to earnings.
On days when no price for the
security can be found or
estimated, the valuation is made
exponentially based on the
internal rate of return.
Valuations are made daily.
Investments are valued at market price
on the day of acquisition and therefore
changes in the values of securities
since acquisition date are recorded as
of the purchase date.
Trading
equity
investments
–
At sight
Unit fund investments, for yield
Unit fund investments are valued
by the price of the unit
calculated by the fund manager
for the previous day.
The difference between current market
value and the previous day´s price is
credited or debited to the investment
and debited or credited to earnings
Held
maturity
to
Until maturity
Securities that the Parent and
Subsidiaries wishes to hold to
maturity or redemption and have
the legal, contractual and financial
capacity to do so.
Exponentially based on the IRR
calculated at the time of
purchase.
Present value is calculated as an
increase to the value of the investment
and the difference with the previous
value is recording in the earnings
statement.
The securities may not be the
object of liquidity operations, repos
or simultaneous operations, or
temporary transfers, unless they
are mandatory investments or
obligations underwritten in the
primary market and the counterpart
is Banco de la República, the
National
Treasury
or
Superintendency – supervised
institutions.
This procedure is followed daily.
Likewise, they may be delivered in
guarantee at a Counterpart Risk
Clearing
House
to
support
completion of operations accepted
by it for clearing and settlement.
Debt securities
available
for
sale
1 year up to
November 2013
and 6 months
as
of
the
effective date of
Superintendenc
y Circular 35 of
December 02,
2013
The Parent has the intention and
legal, financial, operational and
contractual capacity to hold these
investments at least 6 months; they
can be reclassified into one of the
above categories.
Upon expiry of that term, they may
be reclassified to another category
on the next following business day.
If not reclassified on that date, it is
understood
that
the
Parent
continues to have a serious
intention to classify them as still
Investments in debt securities
will be valued on the basis of
prices, supplied by the Price
Supplier.
On days when a fair price
cannot be found or estimated,
these securities are valued
exponentially based on their
IRR.
Changes to the value of low/minimum
turnover or unquoted securities are
recorded as follows:
- The difference between present value
on valuation date and the existing
book value is recorded as an increase
to the value of the investment, which
is credited to earnings.
- The difference between market value
and present value is recorded as an
(Continued)
9
Classification
Term
Characteristics
Valuation
available for sale and therefore to
continue to hold them for a period
equal to that indicated for that type
of investment.
Recording
unrealized accumulated gain or loss
in the equity section.
- This procedure is followed daily
Investments classified in this
category may be used as a
guarantee with a central risk
clearing house, upon the latter´s
acceptance of them for clearing
and settlement.
These investments may also be
sued for liquidity operations, repos,
simultaneous
operations
or
temporary securities transfers.
Equity
investments
available
for
sale
None
Investments made by the Parent or
Subsidiaries as a co-owner of the
issuer.
High, low or minimum turnover or
unquoted securities, held by the
Parent as parent or controlling
interest.
These investments do not need to
be held for 6 months prior to sale.
These securities are valued
depending on whether or not
they are quoted on an
exchange:
-
Securities on the National
Register for Securities and
Issuers (RNVE):
Valued at the price published by
Price Suppliers authorized by
the Superintendency.
-
Unlisted securities:
Unlisted equities are valued by
the official Price Supplier
designated for the segment. If
the Price Supplier has no
method
to
value
these
investments, the Parent must
increase
or
reduce
the
acquisition
cost
by
the
percentage it holds, in respect
to subsequent variations in the
investment´s
equity
value
based on certified financial
statements at December 31 and
June 30 each year (or more
recent if available).
At each monthly closing the
book equity of each international
affiliate is re-expressed in US
dollars and the result is
compared with the value of the
investment.
The
result
is
recorded as a peso valuation
gain or loss.
Low/minimum turnover or unquoted
-
The difference between latest
updated market value and current
book value is recorded as follows:
If the new market value is higher, the
difference is used to reduce any
allowance or downward adjustment
made until it is exhausted, and any
excess is then recorded as a
revaluation surplus.
If the new market value is lower, any
surplus is reduced until exhausted,
and any excess is a downward
adjustment.
-
When dividends or profits are
distributed in kind, including those
corresponding to the capitalization of
the equity revaluation account, they
are recorded as income for the portion
recorded as a revaluation surplus,
charged to the investment and the
surplus is reversed.
-
If dividends or profits are
distributed in cash, the amount
recorded as a valuation surplus is
treated as income, reducing the
surplus, and the amount of dividends
that exceeds this is recorded as a
reduction in the value of the
investment.
For the recording of investments made
through purchases of international
affiliates, the agreed equity value is
used and re-expressed in US dollars.
This value is then compared to the price
paid. The difference is recorded as
goodwill, to be amortized over 20 years
as of the date of completion of the
business.
(Continued)
10
Investment Transfer Rights
This corresponds to restricted investments which represent the collateral for investment repurchases.
The Parent retains economic rights and benefits and continues to assume the risks related to these
securities, even after ownership has legally been passed in the repo.
The securities are valued daily and recorded in the balance sheet and earnings statement using
methods and procedures applicable to trading investments, investments held to maturity, and
investments available for sale.
Allowances or Losses due to Credit Risk Classification
Securities of Unrated Issues or Issuers
Category
Risk
Characteristics
Allowances
A
Normal
Meets agreed terms for the security, with appropriate
capacity to pay capital and interest
None
B
Acceptable
Issues with factors of uncertainty which might affect the
capacity to continue to service debt; financial statements
and other available information show weaknesses which
might affect financial situation.
Net value may not exceed 80% of face
value net of amortizations up to
valuation date
C
Appreciable
High or medium probability of default in capital or interest
payments when due; financial statements and other
available information show deficiencies in the financial
situation that compromise recovery of the investment,
valuation date
D.
Significant
Issues with default against agreed terms, financial
statements and other available information have marked
deficiencies in respect of the financial situation, and
recovery of the investment is highly unlikely.
valuation date
E
Unrecoverable
The financial statements and other available information
suggest that the investment is unrecoverable.
Full allowance required
Externally-rated securities or issuers
Securities that carry one or more ratings made by a rating agency recognized by the Superintendency
and debt securities issued by issuers rated by them, may not be booked for amounts that exceed the
following percentages of par value net of amortizations so far made up to valuation date.
Long-term rating
BB+, BB, BBB+, B, BCCC
DD, EE
Max value
90%
70%
50%
0%
Short term rating
3
4
5 and 6
5 and 6
Max value
90%
50%
0%
0%
The issuer´s rating is used for the estimates of allowances against term deposits
Allowances against investments classified as to be held to maturity for which a fair price can be
estimated in accordance with the conditions for debt securities for trading or available for sale,
correspond to the difference between book value and that price.
(Continued)
11
e. Loans
This account records loans in various modes funded by own funds, public deposits and other external
and internal sources of finance.
Loans are recorded at disbursement value; but factoring operations are recorded at the present value
of flows to be bought on a given date applying the appropriate discount rate.
The Parent has adopted a credit risk management system (SARC) to implement clear and precise
policies and procedures to define criteria and modes for the Parent to evaluate, assume, classify,
control and cover credit risk; not only from the point of view of allowance coverage but also through
the administration of the process of granting loans and their ongoing follow-up.
There are three (3) modes of loan:
Commercial Loans
These are loans made to individuals or corporate entities for organized economic activities, other
than Micro-loans.
Consumer loans
These are loans given regardless of amount to individuals to finance the acquisition of consumer
goods or pay for services for non-commercial or non-business purposes other than micro-loans.
Home mortgages
These are loans made to individuals, and are used to acquire new or used housing, or the
construction of personal housing. They are being denominated in UVR or pesos; they are guaranteed
by a first mortgage on the housing unit financed.
The term of amortization is between 5 and 30 years; they may be prepaid in full or in part, with no
penalty; and in the event of partial prepayment, the debtor may choose whether to reduce the
instalments or shorten the term of the loan. They carry ordinary interest on outstanding balances in
UVR or pesos, depending on the denomination of the loan. Interest is charged in arrears and may not
be capitalized. The loan may be for a maximum of 70% of the value of the property. The value must
be either the purchase price or that of a professional valuation made within the last six (6) months.
Loans for social interest housing may be for up to 80% of the value of the property.
Property financed in this way must be insured against fire and earthquake.
Frequency of Evaluation
The Parent evaluates all loans of all kinds. Loan performance is updated monthly for part-payments,
cancellations, write-offs and ageing of arrears.
For this, The Parent has adopted analytical methods and techniques to measure the credit risk
inherent in a loan and possible future changes in conditions of debt servicing. These methods and
techniques are based on information held of patterns of behavior of the portfolio and loans, the
particular characteristics of debtors and loans and guarantees supporting them; the debtor´s credit
record with other lenders and financial information about the debtor or alternative information to
(Continued)
12
establish his financial situation appropriately; and sector and macroeconomic variables affecting their
normal development.
The Parent evaluates and reclassifies loans when:


Payment is in arrears after a restructuring. This requires immediate reclassification.
At least at a six-monthly evaluation (May and November) if reclassification is required.
Criteria for the evaluation of credit risk

The Parent permanently evaluates the risks inherent in its credit assets when it grants loans
and through the life of the loan, including restructurings.

The Parent has designed a Credit Risk Management System (SARC) composed of policies
and processes of credit risk management, reference models for estimates or quantifications
of expected losses, systems of allowances to cover credit risks and internal control systems.

The granting of credit is based on knowledge of the borrower, his capacity to pay and the
characteristics of the contract to be made, including amongst other things the financial
conditions of the loan, sources of repayment and macroeconomic conditions to which he
might be exposed-.

For the loan approvals process, each portfolio had rules that contain variables to discriminate
between borrowers who match the Parent´s risk profile. Segmentation and discrimination in
the loan portfolios and the potential borrowers in them are the basis for classification. The
methods and procedures used in the process enable the credit exposure of each portfolio to
be monitored and controlled as well as the aggregate portfolio, avoiding an excessive
concentration of credit per debtor, economic sector, risk factor, etc.

The Parent is engaged in continuous monitoring and classification of loan operations in
accordance with the process for granting them, based amongst other things on the
information on the historical performance of the portfolios and loans; the particular
characteristics of debtor and their loans and guarantees; the credit record of the debtor in
other entities and his financial information, in order to establish his financial situation and
sector and macroeconomic variables that might affect the course of the business.

The Parent follows Laws 358/1997, 550/1999, 617/2000 and 1116/2006 when evaluating the
capacity to pay of regional government agencies.
Credit risk evaluation
Commercial and consumer loans are classified by risk category with the following minimum objective
conditions.
Category
AA
A
BB
B
CC
Default
New Loans
New loans classed AA when approved
New loans classed A when approved
New loans classed BB when approved
New loans classed B when approved
New loans classed CC when approved
-
Existing Commercial Loans
Existing loans up to 29 days past due
Existing loans 30-59 days past due
Existing loans more than 150 days past due
Existing Consumer loans
Loans classified AA using MRCO rating
Loans classified A using MRCO rating
Loans classified BB using MRCO rating
Loans classified B using MRCO rating
Loans classified CC using MRCO rating
Loans more than 90 days in arrears
(Continued)
13
The Parent applies the following equivalents for purposes of compatibility of risk classifications in
indebtedness reports and recording in the financial statements:
Commercial loans
Aggregate of
categories reported
Category reported
AA
A
BB
B
CC
C
D
E
Group Category
A
B
B
C
C
C
D
E
Consumer Loans
Aggregate of categories reported
Category reported
AA
Arrears 0-30 days
Arrears over 30 days
BB
B
CC
C
D
E
Group Category
A
A
B
B
C
C
C
D
E
Where the Superintendency model requires a customer to be classed as “in default”, the following
equivalences will be used:
Category E = Customers in default whose LGD is taken as 100%.
Category D = Other customers in default.
For the equivalences used in consumer loans, it is understood that the arrears referred to in the table
above is the maximum recorded for the debtor in aligned products.
Home mortgage loans
Home mortgages are classified by ageing as follows:
Category
ABCDE-
Normal
Acceptable
Acceptable
Significant
Unrecoverable
Home mortgage
Current and up to 2 months past due
2-5 months past due
5-12 months past due
Over 18 months past due
(Continued)
14
Restructured loans
A "restructured loan" is one for which a legal agreement exists with the intention or effect to modify
the terms of the credit, to enable the debtor to pay. Before restructuring it must be established that
there is a reasonable probability of recovery under the new conditions.
Debt relief granted by law – such as that of Law 546/1999 for home mortgages – is not considered to
be a restructuring.
Rules for reclassification of restructured loans
Loans may be placed in their lower risk category after restructuring only if the restructuring
agreement shows an improvement in the debtor´s capacity to pay or a smaller possibility of default. If
the restructuring agreement provides a grace period for capital repayments, that classification can
only be preserved where the grace period is no longer than one year after signature.
In restructurings under Law 550/1999, Law 617/2000 and Law 1116/2006 and special restructurings,
the following considerations apply:
Law 550/99 Restructurings
For Law 550/99 operations, as of the date on which negotiations begin, the Parent ceased to accrue
interest and maintained the classification then given to the debtor.
When Law 1116/2006 came into force to regulate business insolvency, the Parent considers that the
borrower has become insolvent.
Fiscal Restructuring (Law 617/2000)
Restructurings derived from the signature of Fiscal and Financial Restructuring Programs in the
terms of Law 617/2000 and which are current at June 30, 2014 are subject to the following Bank
policies:

Sovereign guarantees cover loans made to regional government by financial institutions
supervised by the Financial Superintendency, subject to certain requirements, one of which is
that the regional government entity must sign a fiscal adjustment agreement by June 30, 2001.
The guarantee covers 40% of loans outstanding at December 31, 1999 and 100% of new loans
made for fiscal restructuring.

The features of this type of restructuring allow reversal of reserves against debt which is part of
the operation for the portion with Government guarantees. The portion not so covered retains the
classification at June 30, 2001.
Loans Written Off
A loan may be written off if management considers that it is unrecoverable or that recovery would be
a remote or uncertain event, after exhausting actions to collect and with the favorable opinion of legal
counsel and debt collection agencies; all of this, with prior Board approval.
A write-off does not relieve the Parent of the duty to continue to press for collection and to make
allowance against all capital, interest and other items.
(Continued)
15
Loan allowances
The Parent covers credit risk with a system of allowances charged to earnings, calculated on unpaid
balances, ageing and risk categories for Home Mortgage and Microloans and as a function of
expected loss produced by the reference models for commercial and consumer loans, or on
outstanding balances as a function of arrears and the risk categories applicable to home mortgage.

Individual Allowances using the Reference Models
As required by the Superintendency the Parent has established a general scheme of
individual allowances for commercial and consumer reference models calculated as the sum
of the two individual components – “pro-cyclical” and “counter-cyclical”.
The individual pro-cyclical component is the portion of the individual allowance that reflects
the debtor´s credit risk today.
The individual counter-cyclical component is the portion that reflects possible changes in
debt risk should there be greater deterioration in this type of loan. It is charged today in order
to reduce the impact on earnings of a future situation of this kind.
The counter-cyclical portion may not be less than zero nor more than the expected loss in
Matrix B and the sum of the two components may not be greater than the value of exposure.
The Parent calculates the two components - capital and receivables - separately for loans
and leasing operations.
In order to determine the method to be used when calculating these components, the Parent
makes a monthly evaluation of the real quarterly variation in individual allowances in
Categories B, C, D and E with a quarterly accumulation of allowances net of recoveries on
loans and leasing operations as a percentage of accumulated quarterly interest on them.
There is a quarterly accumulation of allowances net of recoveries for loans and leasing
operations as a percentage of the quarterly accumulated adjusted gross financial margin and
the annual growth rate of gross loans. Depending on the result of these indicators the Parent
applies the accumulative phase method or the de-accumulative phase method.
At June 30, 2014 and 2013 the individual allowances were calculated using the accumulative
phase as required by Superintendency instructions.

General Allowance
The General Allowance is a minimum of 1% of Micro and Home Mortgage loans.

Additional Allowance, Consumer loans
Superintendency Circular 026 of June 22, 2012 gives instructions on an additional individual
allowance on consumer loans equal to 0.5% of the capital amount of the consumer loan
multiplied by the value of the LGD on the loan. The Parent continued to apply this allowance
and it appears as a charge in the financial statements at June 30, 2014.
(Continued)
16
Commercial and Consumer Loan Models
The Parent has adopted the Superintendency`s Reference Model to calculate allowances against
these loans.
Expected losses (allowances) are calculated as:
EXPECTED LOSS = [probability of default] x [Exposure at the time of default] x [Loss given default]
The segmentation and discrimination of loan portfolios and possible borrowers is the basis for
estimating expected losses in the reference models.
Segmentation is effected as follows for commercial borrowers:
Size
Major
Medium
Small
Classification by asset levels
Assets
(minimum salaries)
15,000
5,000-15,000
Under 5,000
Approx.
US $000 equivalent
Over 3,750
1,250-3,750
1,250
The model contains a category for “Individual personal” loans, which include all loans given to
individuals as commercial borrowings.
For the consumer loan model (MRCO), the discrimination of portfolios is based on segments
differentiated by products and the lenders that provide them, in order to preserve particular market
niches and products.
Segmentation of consumer loans is effected with the following criteria from the MRCO Model:



General – Automobile: Loans made by finance companies other than consumer finance
companies to purchase vehicles.
General – Other: Loans made by finance companies other than consumer finance
companies to purchase items other than vehicles. Credit card purchases are not included.
Credit card: Revolving credit for the purchase of consumer goods through plastic cards.
The reference models for commercial and consumer loans define the components of expected loss
with the following parameters.
a.
Probability of default
This is the probability that debtors will go into default within the next 12 months.
The probability of default is defined the matrices shown below, which are compiled by the
Superintendency:
(Continued)
17
Commercial Loans
Major companies
Medium companies
Small companies
Individuals
Classification
Matrix A
Matrix B
Matrix A
Matrix B
Matrix A
Matrix B
Matrix A
Matrix B
AA
1.53%
2.19%
1.51%
4.19%
4.18%
7.52%
5.27%
8.22%
A
2.24%
3.54%
2.40%
6.32%
5.30%
8.64%
6.39%
9.41%
BB
9.55%
14.13%
11.65%
18.49%
18.56%
20.26%
18.72%
22.36%
B
12.24%
15.22%
14.64%
21.45%
22.73%
24.15%
22.00%
25.81%
CC
19.77%
23.35%
23.09%
26.70%
32.50%
33.57%
32.21%
37.01%
Default
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Consumer loans
Matrix A
Matrix B
Classification
Automobiles
Other
Credit Card
Automobiles
Other
Credit Card
AA
0.97%
2.10%
1.58%
2.75%
3.88%
3.36%
A
3.12%
3.88%
5.35%
4.91%
5.67%
7.13%
BB
7.48%
12.68%
9.53%
16.53%
21.72%
18.57%
23.21%
B
15.76%
14.16%
14.17%
24.80%
23.20%
CC
31.01%
22.57%
17.06%
44.84%
36.40%
30.89%
Default
100.0%
100.0%
100.0%
100.00%
100.00%
100.00%
Each commercial and consumer loan customer segment thus has the possibility of migrating
from a category and falling into default in the next 12 months, depending on the general cycle of
credit risk.
b. Loss given default (LGD)
This is defined as the economic loss to the Parent if any event of default takes place. The loss
given default for borrowers in the “default” category will undergo a slow increase as a function of
the days elapsed since classification into that category.
The LGD by type of guarantee is the following:
Commercial loans
Type of security
Other guarantees
Subordinated loans
Loss on
default
55%
Days
default
270
New loss
on default
70%
540
New loss
on default
100%
100%
Days default
75%
270
90%
540
0 – 12%
-
-
-
-
Commercial and residential property
40%
540
70%
1080
100%
Property leasing assets
35%
540
70%
1080
100%
Non-property leasing assets
45%
360
80%
720
100%
Other collateral
50%
360
80%
720
100%
Collection rights
45%
360
80%
720
100%
No guarantee
55%
210
80%
420
100%
Admissible financial collateral
(Continued)
18
Consumer loans
Type of security
Loss on
default
Days
default
New loss
on default
Days default
New loss
on default
60%
210
70%
420
100%
Other guarantees
0 – 12%
-
-
-
-
40%
360
70%
720
100%
Asserts on property leasing
35%
360
70%
720
100%
Leasing assets other than property
45%
270
70%
540
100%
Other collateral
50%
270
70%
540
100%
Collection rights
45%
360
80%
720
100%
No guarantee
75%
30
85%
90
100%
c.
Asset value exposure
In the Commercial Reference Model and Consumer Reference Model, the asset value exposed
is the outstanding balance of capital, interest, and receivables for interest and other items.
Home mortgage
The Parent maintains allowances against outstanding balances no lower than the percentages
shown below.
Home mortgage
A – Normal
1
Capital allowance as
% of unsecured
portion
1
B- Acceptable
3.2
100
100
C- Appreciable
10
100
100
D-Significant
20
100
100
E-Unrecoverable
30
100
100
Category
Capital allowance as %
of secured portion
Interest &
Other Items
1
For home mortgage loans, if the account has been in Category E for two (2) consecutive years, the
percentage allowance on the secured portion is raised to 60%. If the account is still E after another
year (1), the allowance is raised to 100% of the secured portion.
Effect of collateral on individual provisions
For the purposes of setting up individual allowances against home mortgage loans, collateral only
covers the capital amount of the loan. Therefore, the allowance is made for these percentages in
respect of the difference between balances pending amortization and 100% of the value of the
collateral. For the guaranteed portion, 100% of balance of the debt secured.
Rules of alignment
The Parent aligns debtor classifications as follows:
(Continued)
19

Permanent classification
Before making provisions and applying equivalent classifications the Parent makes individual
internal alignments each month, and for each debtor taking all credit operations to the highest
risk category applicable, unless it can show the Superintendency that there is good reason not to
do so.
Regulations require that the Parent must consolidate its financial statements, and all loans or the
same mode to any given debtor must carry the same classification.

Quarterly classification
On a quarterly basis, the Parent conducts a process of external alignment with loans elsewhere
in the financial sector based on information supplied by the credit bureaus and following relevant
regulations, Loans of any given kind to any debtor are transferred to a higher risk level
accordingly unless the Superintendency can be shown that there is good reason not to do so.

Half-yearly classification
Under Section 2.2.3.2. of Chapter II of the Accounting Circular, the Parent makes a classification
in May and November to record the results of evaluation and any reclassifications required.
Policy on loan collateral
The Parent follows the Superintendency Circular 043/2011 in relation to collateral for operations and
criteria to estimate their value and effectiveness.
Collateral for loans must meet the following criteria:
a)
Policy for admission and management of collateral.
The collateral support of an operation is a necessary element in the calculation of LGD, and
therefore, to determine the level of allowances.
“Admissible” collateral is that which is formalized, and

Has a value established on the basis of technical and objective criteria.

Is sufficient to cover the amount of the loan.

Offers legally effective support for payment of the obligation guaranteed, and are reasonably
possible to realize.
Collateral which, in accordance with Part 2, Book 1, Title II Decree 2555/2010, is classified as
"non-admissible" may not be accepted as valid collateral.
The evaluation of the support offered and the possibility of realization of each security taken,
should take account of at least the following considerations: nature, value, and liquidity. Further,
the potential costs of realization should be estimated, along with legal requirements to enforce
them, in each case.
Particular instructions on certain kinds of admissible collateral:
(Continued)
20

If the collateral consists of a mortgage or pledge, or, although not being a real guarantee,
falls on one or more defined assets - as is the case of the irrevocable trusts in guarantee or
escrows - these will only be considered as admissible as a function of the factors mentioned
above, and realization value should be used to establish their value.

If a loan is collateralized with a pledge of revenues, as in the case of loans granted to
regional government, there should be a check that those revenues are not being affected by
diversion to specific destinations or by other prior or concurrent pledges, in accordance with
Legal Circular Title II, Chapter I, Section 1.1.1 (j).

For the purposes of evaluating credit risk, additional sources of payment may be considered
as suitable collateral, if they unconditionally and sufficiently cover the loan upon the simple
demand of the creditor. They will have the same treatment as sovereign guarantees, which
have certified budget availability approved by the competent authority.

Likewise, guarantees given by Fondo Nacional de Garantías S.A. and Fondo Agropecuario
de Garantías meeting the requirements of this section are considered to be suitable.

Standby letters of credit are considered to be admissible when they meet the following
conditions:

When they are in group irrevocable and payable against presentation.

If the long-term debt of the issuing bank is investment-grade as rated by a
Superintendency-authorized rating agency, or by an internationally-recognized rating
agency, as the case may be.
b) Valuation of collateral
In order to establish the value of collateral at the time of granting a loan, and subsequent
updating, the following instructions are to be followed:
1. For collateral formed by real property destined for housing, the value at the time of grant
comes will correspond to that obtained a professional valuation, which will be not more than one
year old, unless it is decided to make a new professional regular road rash. Valuation of the
property, at the end of this period there should be an annual update of value, applying the
following mechanisms:

Real property in Bogota. The value should be adjusted by the annual indicator for the urban
and oral property valuation index (IVIUR), adopted by the City of Bogota, for the tax period
and the assigned residential stratum.

For property in Armenia, Barranquilla, Bucaramanga, Cali, Cartagena, Cúcuta, Florencia,
Ibagué, Manizales, Medellín, Montería, Neiva, Pasto, Pereira, Popayán, Quibdó, Riohacha,
Santa Marta, Sincelejo, Tunja, Valledupar and Villavicencio. Apply the Property Valuation
Index (IVP) published by the statistical bureau DANE in each case.

Property in places other than those mentioned above should apply the property valuation
indicator IVP, national total.
2. In the case of guarantees on non-residential real property, value at the time of grant will
correspond to that obtained by a professional valuation not more than three years old. At the end
of this period, and at least every three years, a new professional valuation should be taken to
keep the value of the property up to date.
(Continued)
21
3. In the case of guarantees formed over machinery and equipment, the value will be defined by
the following criteria:

Machinery and equipment which is new, or less than one year old. The Parent will use the
purchase value recorded in the invoice or in the books of the debtor at the time of granting
the loan. The value will be valid for three years. After this period, and at least every three
years, a fresh professional valuation should be taken to keep the value of the guarantees up
to date.

Machinery and equipment, more than one year old. The Parent will use the value obtained by
a technical professional regulation at the time of granting the loan. This value will be valid for
three years. At the end of this period and at least every three years, a fresh professional
valuation should be made to keep the value up to date.
4. In the case of guarantees on vehicles, the value should be determined thus:

Vehicles classified in the Fasecolda Value Guide. At the moment of grant of the loan and in
subsequent monthly updates, the value of the vehicle will correspond to that published in the
Guide.

Vehicles not classified in the Fasecolda Value Guide. The Parent may use information from
commercial valuation is published by the Ministry of Transport, or private apply the procedure
described above for machinery and equipment.
5. In the case of collateral in the form of securities, the value will be determined in accordance
with the terms of Chapter I of Circular 100/1995, or using the value supplied by a
Superintendency-approved Price Supplier.
6. In the case of collateral formed by other assets, their value at the time of grant will correspond
to value obtained by a professional valuation and its update, and this should be taken depending
on the characteristics of the asset.
For goods which delivered in guarantee, and which in accordance with the terms of the preceding
sections require a new professional valuation to update their value, the Parent, with the
authorization of the Superintendency, will be free not to conduct the valuation provided that one
of the following suppositions is satisfied:

The term of the loan is supported by the guarantee is not more than three years, and the
value of the same is at least twice the total of the unpaid balance of the loans secured.

The term to run to the completion repayments is one year or less.

The cost of the valuation is more than 10% of the value of the balance of the loans
guaranteed.

The loan guaranteed has been subject to an allowance of 100%.
If the Parent uses this option, it must in each case justify the reasons for its decision, taking
account of the criteria for the evaluation of risk. The justification must be kept available to the
Superintendency.
(Continued)
22
At all events, supervised institutions should evaluate the admissibility of their collateral and
immediately update its valuation when the obligations whose performance they support obtain a
classification of “D”, except in cases where the updating of the value of the guarantee has been
made within the year prior to the time that the obligation acquires this classification.
For the purposes of this Chapter on collateral policy, it will be understood that a "professional
valuation" is one which at least satisfies the criteria and content of Articles 1 and 2 of Decree
420/2000, as amended.
c) Administration of collateral.
In order to comply with the above collateral policy, there are policy and procedure manuals, and
technological tools and physical resources for the appropriate management, custody and
disclosure of the collateral which supports loans granted.
Equivalent Loan Classifications and Calculations of Allowances and Losses from Credit Risk
in Peru and Paraguay
Following Superintendency regulations on the presentation of consolidated financial statements and
allowances, the Parent established equivalent risk classifications and made allowances for loans in
the Peruvian and Paraguayan subsidiaries in the terms of Annexes 1-5 of the Superintendency
Accounting Circular Chapter II and relevant regulatory principles established by the authorities of the
countries where the subsidiaries operate.
Credit Risk Evaluation Criteria in Peru and Paraguay
The Subsidiaries outside Colombia allocate classifications at the time of making loans, following local
regulations and internal policies defined by the Parent and the Subsidiary.
Classification of Credit Risk in Peru and Paraguay
The Colombian-method calculation of allowances for Subsidiaries outside Colombia requires a credit
risk assessment for each borrowing client in Peru and Paraguay; and this in turn requires that credit
categories equivalent to the Colombian categories must be established. An analysis was therefore
made of client segmentation in each mode of loan, together with the identification of the leading
characteristics of loan risk categories for each Subsidiary. A comparison was then made with the
Colombian classifications to establish equivalences.
(Continued)
23
Banco GNB Peru S.A.
Commercial Loans: Corporate, and Large and Medium Enterprises
Risk
category
AA
RISK CATEGORY
COLOMBIA
Category
Description
name
Normal Loans with less
Normal
than 29 days past due
Risk
category
0
1
BB
Acceptable
60-89 days past due
2
B
Appreciable
90-119 days past due
2
2
CC
Appreciable
3
Significant (D)
or
unrecoverable
(E)
IN
3
150+ days past due
4
RISK CATEGORY
PERU
Category
Description
name
Prompt payment, highly competitive.
Normal
29 days past due
Good
financial
situation
and
With
profitability. Occasional minor delays
problems
in payment not more than 60 days. 60
days past due.
Weak financial situation, little capacity
Deficient to generate profits. 61-89 days past
due.
Deficient to generate profits. 90-119 days past
due.
Deficient
to generate profits. 120 days past due
Critical financial situation, very high
Doubtful
indebtedness, Insufficient cash flow
Critical financial situation, very high
Doubtful
indebtedness, Insufficient cash flow
Insolvent, Difficulties in meeting
eventual restructuring arrangements.
Loss
Cash flow does not cover costs. Over
366 days past due
Commercial loans: Small businesses and personal banking borrowers
Risk
category
AA
RISK CATEGORY
COLOMBIA
Category
Description
name
Normal Loans
Normal
days past due
Risk
category
29
RISK CATEGORY
PERU
Category
Description
name
0
Normal
1
Potential
problems
BB
Acceptable
60-89 days past due
2
Deficient
B
Appreciable
CC
Appreciable
120-149 days past
due
3
3
3
4
Doubtful
Doubtful
Doubtful
Loss
IN
Significant (D)
or
unrecoverable
(E)
150+ days past due
4
Loss
Performing well, 0-8 days past due
9-29 days past due
Good
financial
situation
and
profitability. Occasional minor delays
in payment not more than 60 days.
30-59 days past due.
61-89 days past due
120 days past due
150 or more days past due
(Continued)
24
Consumer loans
RISK CATEGORY
COLOMBIA
Risk
category
Category name
AA
Normal
Description
BB
Acceptable
CC
Appreciable
IN
Significant (D) or
unrecoverable (E)
MRCO
AA
classification
MRCO
BB
MRCO
CC
classification
Risk
category
0
1
classification
90+ days past due
2
3
3
4
RISK CATEGORY
PERU
Category
Description
name
Performing well, 0-8 days
Normal
past due
Potential
9-30 days past due
problems
Deficient
31-60 days past due
Doubtful
Doubtful
Loss
61-90 days past due
121 or more days past due
Home mortgage loans
Risk
category
RISK CATEGORY
COLOMBIA
Category
Description
name
A
Normal
Up to date – up to 2
months past due
B
Acceptable
2-5 months past due
C
Appreciable
D
Significant
E
Unrecoverable
Over 18 months past due
Risk
category
0
1
2
3
3
3
4
4
RISK CATEGORY
PERU
Category
Description
name
Up to date or up to 30
Normal
days past due
Potential
31-60 days past due
problems
Deficient
Doubtful
Doubtful
Doubtful
Loss
Loss
0ver 541 days past due
Paraguay
Commercial Loans
Risk
category
AA
A
RISK CATEGORY
COLOMBIA
Category
Description
name
Normal Loans 29 days
Normal
past due
Acceptable
30-59 days past due
BB
Acceptable
60-89 days past due
B
Appreciable
CC
Appreciable
IN
Significant (D)
or
unrecoverable
(E)
150+ days past due
1A
RISK CATEGORY
PERU
Category
Description
name
Category 1
Up to date
Category 1
1-29 days past due
Category 1
30 days past due
1B
1B
2
2
3
3
3
4
5
6
Category 1
Category 1
Category 2
Category 2
Category 3
Category 3
Category 3
Category 4
Category 5
Category 6
Risk
category
1
1A
31-60 days past due
60 days past due
90 days past due
150 days past due
271+ days past due
(Continued)
25
Consumer loans
Risk
category
RISK CATEGORY
COLOMBIA
Category
Description
name
RISK CATEGORY
PERU
Category
Description
name
Category 1
Up to date
Category 1
1-30 days past due
Category 1
31-60 days past due
AA
Normal
MRCO classification AA
BB
Acceptable
MRCO classification BB
Risk
category
1
1A
1B
CC
Appreciable
MRCO classification CC
2
Category 2
MRCO classification IN
3
4
5
6
Category 3
Category 4
Category 5
Category 6
271+ days past due
Significant (D)
or
unrecoverable
(E)
IN
Allowances
The Parent calculates individual allowances for the loans of Subsidiaries outside Colombia, applying
the Colombian scheme of commercial and consumer reference models. The allowances against
home mortgage loans are calculated on unpaid balances as a function of ageing and risk category.
The calculation of allowances for these Subsidiaries is based on the following criteria:

Individual Allowances for Peru and Paraguay using the Colombian Reference Models
The calculation of individual allowances for the Peruvian and Paraguayan subsidiaries was
effected as required by the Colombian Superintendency, as the sum of the two individual
components – pro-cyclical and counter-cyclical – for principal, interest and other items.
The individual pro-cyclical component is the portion of the individual loan provision that
reflects the debtor´s credit risk today.
The individual counter-cyclical component is the portion that reflects possible changes in debt
risk should there be greater deterioration in this type of loan. It is charged today in order to
reduce the impact on earnings of a future situation of this kind.
At June 30, 2014 the individual provisions of the Parent and subsidiaries outside Colombia were
calculated using the accumulative phase as required by Superintendency instructions.

General Allowance for Home Mortgage Loans in Subsidiaries outside Colombia
The Peruvian Subsidiary calculates the minimum General Allowance of 1%; the Paraguayan
Subsidiary has no home mortgage loans in its portfolio at June 30, 2014

Additional Allowance, Consumer Loans, Subsidiaries outside Colombia
In the terms of Colombian Superintendency Circular 026 of June 22, 2012, additional individual
allowances are made against consumer loans in the Subsidiaries in Peru and Paraguay, equal to
0.5% of the capital amount of the month´s consumer loans multiplied by the value of the LGD on
the loan.
(Continued)
26
Commercial and Consumer Loan Models for the Subsidiaries in Peru and Paraguay
The Parent has adopted the Colombian Superintendency`s Reference Model to calculate allowances
against the loans of the Subsidiaries in Peru and Paraguay.
Expected losses (provisions) are calculated as:
EXPECTED LOSS = [probability of default] x [Exposure at the time of default] x [Loss given default]
Commercial Loans
For the Subsidiaries in Peru and Paraguay, the segmentation and discrimination of borrowers is the
basis for estimating expected losses in the reference models. Segmentation is effected by asset
levels as follows:
Classification by asset levels
Size
Assets ( Minimum salaries)
Major
Medium
Small
Over 15,000 (*)
5,000 – 15,000
Under 5,000
Approx.
US$000 equivalent
Over 3,750
1,250 – 3,750
Under 1,250
The model contains a category for “Individual personal” loans, which include all loans given to
individuals as commercial borrowings.
(*) “Minimum salaries” refers to the Colombian minimum.
Consumer Loans
The differentiation of consumer loan segments in the Subsidiaries in Peru and Paraguay depends on
the product.
Segmentation of consumer loans is effected with the following criteria from the MRCO Model:

General – Automobile. Loans made by finance companies other than consumer finance
companies to purchase vehicles.

General- Other. Loans made by finance companies other than consumer finance companies
to purchase items other than vehicles. Credit card purchases are not included

Credit card. Revolving credit for the purchase of consumer goods through plastic cards.
The reference models for commercial and consumer loans define the components of expected loss
with the following parameters:
a. Probability of default
This is the probability that debtors will go into default within the next 12 months.
(Continued)
27
The probability of default for Peru and Paraguay incorporates an individual country risk in each
case, to reflect the economic context and its interaction with local credit operations
The “country risk” indicator provides a measurement of credit risk applicable to the Probability of
Default Matrices of Annexes 3 and 5 of Chapter II of the Colombian Superintendency´s
Accounting and Financial Circular.
The charts below show the probability of default for Peru and Paraguay, in each class of loan:
Banco GNB Peru S.A.
Commercial Loans
Major companies
Medium companies
Small companies
Individuals
Classification
Matrix A
Matrix B
Matrix A
Matrix B
Matrix A
Matrix B
Matrix A
Matrix B
AA
1.53%
2.19%
1.51%
4.19%
4.18%
7.52%
5.27%
8.22%
A
2.24%
3.54%
2.40%
6.32%
5.30%
8.64%
6.39%
9.41%
BB
9.55%
14.13%
11.65%
18.49%
18.56%
20.26%
18.72%
22.36%
B
12.24%
15.22%
14.64%
21.45%
22.73%
24.15%
22.00%
25.81%
CC
19.77%
23.35%
23.09%
26.70%
32.50%
33.57%
32.21%
37.01%
Default
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Consumer loans
Credit Cards
Other
Automobile
Classification
Matrix A
Matrix B
Matrix A
Matrix B
Matrix A
Matrix B
AA
1.58%
3.36%
0.97%
2.75%
2.10%
3.88%
A
5.35%
7.13%
3.12%
4.91%
3.88%
5.67%
BB
9.53%
18.57%
7.48%
16.53%
12.68%
21.72%
B
14.17%
23.21%
15.76%
24.80%
14.16%
23.20%
CC
17.06%
30.89%
31.01%
44.84%
22.57%
36.40%
Default
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Commercial
Major Companies
Medium Companies
Small Companies
Individual Persons
Classification
Matrix A
Matrix B
Matrix A
Matrix B
Matrix A
Matrix B
Matrix A
Matrix B
AA
1.73%
2.47%
1.70%
4.73%
4.72%
8.48%
5.94%
9.27%
A
2.53%
3.99%
2.71%
7.13%
5.98%
9.75%
7.21%
10.61%
25.22%
BB
10.77%
15.94%
13.14%
20.86%
20.94%
22.85%
21.12%
B
13.81%
17.17%
16.51%
24.20%
25.64%
27.24%
24.82%
29.11%
41.75%
100.00%
CC
22.30%
26.34%
26.05%
30.12%
36.66%
37.87%
36.33%
Default
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
(Continued)
28
Consumer
Credit Cards
Other
Automobile
Classification
Matrix A
Matrix B
Matrix A
Matrix B
Matrix A
Matrix B
AA
1.78%
3.79%
1.09%
3.10%
2.37%
4.38%
A
6.03%
8.04%
3.52%
5.54%
4.38%
6.40%
BB
10.75%
20.95%
8.44%
18.65%
14.30%
24.50%
B
15.98%
26.18%
17.78%
27.97%
15.97%
26.17%
CC
19.24%
34.84%
34.98%
50.58%
25.46%
41.06%
Default
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
b. Loss given default (LGD)
This is defined as the economic loss to the Parent and Subsidiaries if any event of default takes
place. The loss given default for borrowers in the “default” category will undergo a slow increase
as a function of the days elapsed since classification into that category.
The LGD by type of guarantee appears in Annexes 3 and 5 of the Colombian Superintendency
Circular Accounting and Finance Circular Chapter II, applied to the Subsidiaries in Peru and
Paraguay. The following is the LGD by type of collateral for each mode of loan is the following for
Peru and Paraguay:
Commercial loans
Type of security
Unsecured
Subordinated loans
Property leasing assets
Non-property leasing assets
Other collateral
Collection rights
No collateral
Loss on
default
55%
75%
0 – 12%
40%
35%
45%
50%
45%
55%
Days
default
270
270
540
540
360
360
360
210
New loss on
default
70%
90%
70%
70%
80%
80%
80%
80%
Days
default
540
540
1080
1080
720
720
720
420
New loss
on default
100%
100%
100%
100%
100%
100%
100%
100%
New loss
on default
70%
70%
70%
70%
70%
80%
85%
Days
default
420
720
720
540
540
720
90
New Loss
on default
100%
100%
100%
100%
100%
100%
100%
Consumer loans
Type of security
Unsecured
Asserts on property leasing
Leasing assets other than property
Other collateral
Collection rights
No collateral
Loss on
default
60%
0-12%
40%
35%
45%
50%
45%
75%
Days
default
210
360
360
270
270
360
30
Home mortgage loans
Allowances for Peru apply Annex 1 Chapter II of the Superintendency Circular which requires
then following allowances in addition to the General Allowance of 1% of capital outstanding:
(Continued)
29
Classification
Risk
Category
% allowance
on secured
A
B
C
D
E
Normal
Acceptable
Appreciable
Significant
Unrecoverable
1.0%
3.2%
10.0%
20.0%
30.0%
% allowance on
unsecured
capital
1%
100%
100%
100%
100%
Interest and
other items
1%
100%
100%
100%
100%
Banco GNB Paraguay S.A. has no home mortgage loans in its portfolio at June 30, 2014
Recording of income from financial yields
Income from financial yields and other items is recorded on an accrual basis
Suspension of interest accrual
The Parent ceases to accrue interest, monetary correction, exchange adjustment or income for
other items when a loan meets the following conditions.
Mode
Commercial
Consumer
Home mortgage
Past due more than
3 months
2 months
2 months
Therefore, they do not affect the earnings statement until effectively collected. Until that occurs,
the records are kept in Contingent Accounts.
In cases where as a result of restructuring agreements or any other mode of agreement, there is
provision for the capitalization of interest recorded in Memorandum Accounts, or as balances of
loans written off including capital, interest and other items, they are recorded as deferred income,
and amortization is credited to earnings in proportion to amounts effectively collected.
Where there is suspension of accrual yields, monetary correction, exchange adjustment and
income for other items, a provision is made for all accruals not yet collected, and corresponding
to these items.
f.
Acceptances, spot operations and derivatives
Bankers’ Acceptances
These are commercial transactions using a bill of exchange as an acceptance in which the Parent
and Subsidiaries outside Colombia undertake to pay a third party (the beneficiary), within a given
term, one of its customers (the requester) bills corresponding to the purchase or sale of goods for a
defined value.
Bankers´ acceptances have a maximum term of one year and are only issued as part of import and
export transactions, or for the purchase and sale of movable goods within Colombia.
At the time of accepting a bill, the amount is entered as an asset and a liability as "Current Bank
Acceptances". If not presented for payment at maturity, it is reclassified as "Non-Current". If unpaid at
(Continued)
30
maturity by the purchaser of the goods, it is reclassified to a loan account "Bank Acceptances
Covered".
After maturity, acceptances are subject to cash reserve requirements for demand liabilities for
payment within 30 days.
Spot Operations and Derivatives
Spot operations entail clearing and settlement within three working days of being closed.
The Parent and Subsidiaries record derivatives, which are contracts whose essence is that the fair
price of exchange depends on one or more underlying assets, and performance or settlement occurs
subsequently. There may be several purposes for such operations.


The offer of products required by customers, to hedge financial risk, amongst other things
The structuring of Bank portfolios to make use of arbitrage between curves, assets and markets
to obtain high profitability with low levels of equity commitment.
Types of financial derivative
The Parent and Subsidiaries work with the following derivatives:
Forwards (peso-dollar, peso-other currencies)
A forward is a tailor-made derivative in which the two parties agree to purchase/sell a specific
quantity of an underlying asset at some future date. The basic conditions are established –
mainly, price, date and mode of delivery of the underlying. At due date, the operation is liquidated
by the delivery of the underlying asset or through settlement of differences, depending on the
underlying asset and the mode of delivery agreed. This latter condition may be changed during
the term of the agreement through mutual agreement of the parties.
Derivatives traded in the OTC market can be cleared and settled in the Central Counterpart Risk
Chamber, (CRCC) which becomes the counterpart in these operations
Futures in CRCC
A future is a standard contract in relation to maturity date, size or face amount, the characteristics
of the underlying assets, the place and form of delivery (cash or kind). Futures are traded in the
Central Risk Counterpart Chamber CRCC and involve an agreement between two parties who
undertake to purchase and sell an underlying asset at a future date (maturity date) at a price set
at the time the contract is made.
IBR Swaps
A swap is a contract between two parties establishing an obligation to exchange a series of flows
for a defined time on set dates.
In an interest rate swap the flows exchanged are calculated on a face value in a single currency
at different rates of interest. Generally, in this type of contract one party receipt flows of fixed-rate
(Continued)
31
interest and the other receives floating rate flows, although the mechanism can also involve two
different floating rates.
Recording and valuation of derivatives
Derivatives are classified according to their marketability:
 Hedging risks of other positions
 Speculation, seeking profit
 Arbitrage
The recording of derivatives depends on the purpose of the business. At June 30, 2014 and 2013 the
Parent´s derivatives operations were recorded as “speculative”.
Regardless of purpose, derivatives with a positive fair price of exchange (that is, favorable to the
Parent and Subsidiaries) are recorded as assets, are recorded as assets, separating the right from
the obligation except for options, where both are booked in a single account. Derivatives with a
negative fair price of exchange (that is, unfavorable to the Parent and Subsidiaries) are recorded as a
liability, with the same separation of items. Favorable and unfavorable balances of different
operations are not netted, even if they are of the same type.
“Speculative” Derivatives are recorded in the balance sheet from the date the business is closed, at
the fair price of exchange. If on the initial date the value of the contracts is zero – that is, there are no
physical payments or deliveries made between the parties – there is no effect on profit and loss. For
subsequent valuations, the variations in the fair price of exchange are recorded in profit and loss.
On settlement date derivatives balances are cancelled out for the amounts appearing in the balance
sheet, and any difference is charged or credited to earnings. If the accumulated balance of the
derivative is positive, it is recorded as income; and if negative, it is recorded as an expense. This
procedure is followed independently and individually for each instrument and for each settlement.
g. Foreclosed Assets, Leasing Assets Restored; Assets not used in the business
Foreclosed Assets
This account records assets received by the Parent and Subsidiaries in lieu of payment of unpaid
loan balances in its favor.
Assets received in payment in the form of real property are received for a professionally determined
market value and movable assets, shares and other capital interests, at market.
The following circumstances are taken into account when recording foreclosed assets.
-
The initial entry is made for the value awarded by a court or agreed with the debtor.
-
If the asset received in payment is not in a condition to be sold, its value is increased by the
value of the expenses required to make it so.
-
If there is a difference between the value of the asset and the balance of the debt in the debtor´s
favor, the difference is recorded as an account payable; but if its value is insufficient to repay the
balance of the loan, an allowance is made for the difference in the group of accounts where the
obligation is recorded.
(Continued)
32
Restored Leasing Assets
This account records the value of financial leasing assets restored to the Parent and Subsidiaries
outside Colombia due to breach of contract by the lessee or failure to exercise the purchase option.
These assets are not subject to depreciation.
These assets are to be sold within two years unless the Directors of the Parent or Subsidiaries have
extended that term.
Assets not used in the business
These are assets owned by the Parent and Subsidiaries outside Colombia which they have ceased
to use in the course of business.
They continue to be depreciated until sold and form part of the assets of the Parent and Subsidiaries
outside Colombia for the purposes of Chapter VII section 1.2 of the Superintendency Legal Circular.
The two-year time limit for selling assets also applies to these items.
h. Allowance Against Foreclosed and Restored Assets
Foreclosed assets
Real Property
An allowance of 30% of acquisition cost (that is, value received) is made in monthly instalments
during the year following acquisition. This increased by a further 30% during the second year, to
make a total allowance of 60%. When the regulatory limit of two years is reached and the property is
not sold and no extension of time has been granted, allowance is made to cover 80% of acquisition
cost. If there is an extension, the remaining 20% is provided of the term of the extension.
If acquisition cost is lower than the amount of the debt on the balance sheet, the difference is
charged immediately to profit and loss.
If the market value of the property is lower than book value, allowance is made for the difference.
Movable assets
An allowance is made for 35% of acquisition cost of the asset during the first year after receiving the
asset, in monthly instalments, to be increased by 35% more until reaching 70% in the second year.
Once the regulatory deadline for sale has passed, the allowance will be increased to 100%; if an
extension is granted, the remaining 30% will be provided during the extension period.
If the acquisition cost of the asset is lower than the amount of the debt shown in the balance sheet,
the difference must immediately be charged to earnings.
If the market value is lower than book value, an allowance is made for the difference.
Without prejudice to the rules for allowances mentioned above, foreclosed assets in the form of
securities should be valued as directed in Chapter I of the Superintendency Accounting and Financial
(Continued)
33
Circular, taking account of their classification as trading investments available for sale or held to
maturity
Restored Leasing Assets
This account records the value of assets restored from financial leasing operations as a result of
breach of contract by the lessee, or failure to exercise the purchase option. These assets are not
depreciated.
The calculation of individual allowances follows Chapter III of the Superintendency Accounting
Circular.
Time limits for the holding of these assets are the same as for foreclosed assets, falling under
Section 6 of Article 110 of the Financial System Statute
Rules on Time Allowed for Sale
Foreclosed assets must be sold within two years of acquisition, but they may be reclassified as fixed
assets if they are required for the normal course of business, within the maximum parameter for
investments in fixed assets, and provided that they are not subject to the regime that requires prior
authorization (otherwise, advance authorization must be obtained).
If the transfer of title is formalized by registration, the acquisition date is that of registration and
therefore the books should show the payment in lieu as of that date. Other assets may be recorded
as of the date of material delivery.
For financial leasing assets restored, the time limit for sale is counted from material delivery date
The Superintendency may be requested to grant for an extension of time for disposal. The request
must be presented prior to the expiry of the initial two years.
The request to the Superintendency must show that due diligence has been exercised in attempting
to effect a disposal but that disposal has not been possible. The Superintendency may grant an
extension for up to two years from the expiry of the initial term, during which efforts to dispose of
these non-productive assets must be continued.
i.
Property and Equipment
This account records tangible assets acquired, constructed or in the process of importation or
construction and permanently used in the course of the Parent's business whose useful life exceeds
one year. Values include direct and indirect costs and expenses incurred up to the time that the asset
is in a usable condition.
Additions, improvements and non-routine repairs which significantly prolong the useful life of the
assets are capitalized. Payments for routine maintenance and repairs are charged to expense in the
period in which they are incurred.
Depreciation is calculated on a straight-line basis over the estimated useful life of the asset. The
annual rates used are:
Buildings
Equipment, furniture and fittings
Computer equipment
5%
10%
20%
(Continued)
34
Vehicles
j.
20%
Branches and Agencies
This account records the operations between the Head Office, the Branch and the Agencies and
between offices in Colombia and the Agencies and vice versa; and pending items are automatically
reconciled daily.
k. Prepaid Expenses and Deferred Charges
Prepaid expenses are payments made in the normal course of business, the benefits of which are
recovered over more than one period and are recoverable assuming continuous delivery of services.
-
Insurance, over the life of the policy;
Rent, over the period services are provided
Equipment maintenance, three years;
Loan premium pending amortization, over the life of the SNB;
Prepaid expenses under loan agreements, up to 1 year;
Other prepaid expenses, over the period services are received or costs or expenses accrue.
Deferred charges are costs and expenses which benefit future periods and cannot be recovered.
Amortization is calculated from the date which they contribute to the generation of income.
Amortizations are made as follows:
-
Wealth tax, over 4 years
Deferred tax (debit), while the timing differences exist
Remodeling charges are amortized over a maximum of two years.
Software is amortized over a maximum of three years;
Improvements to rented property are amortized over the shorter of the remaining life of the
lease not including extensions, and the probable useful life of the improvements;
Contributions and affiliations, over the period prepaid
Commissions and fees paid for bond placements, over ten and five years respectively, term of
the bonds’ redemption.
The HSBC Regional Integration Project, over 3 years
Advertising, over the period estimated for the benefit expected
Other items, over the estimated recovery period or the period for obtaining the expected
benefits.
Goodwill acquired
Subsidiaries in Colombia
The Parent has intangible assets in goodwill for the purchase of Suma Valores S.A. (now
Servivalores GNB Sudameris S.A. Comisionista de Bolsa) and Nacional de Valores S,A,
Comisionista de Bolsa (now merged with Servivalores GNB Sudameris S.A. Comisionista de Bolsa)
under Article 260 and 261 of the Commercial Code (amended by Articles 26 and 27 of Law
222/1995).
Goodwill is amortized monthly on a straight line basis over 10 years for Servivalores GNB Sudameris
S.A. and over 6 years for Nacional de Valores S.A.
(Continued)
35
Subsidiaries outside Colombia
The Parent has recorded goodwill of US$67,158,973 (sixty-seven millions one hundred fifty eight
thousands nine hundred and seventy three dollars), from the purchase of HSBC Bank Peru S.A.
(now Banco GNB Peru S.A.) as a result of the acquisition price of US$210,454,035 (two hundred and
ten millions four hundred fifty-four thousand and thirty-five dollars), compared to the equity book
value of HSBC Bank Peru S.A. on October 4, 2013 which was US$143,295,061 (one hundred fortythree millions two hundred ninety-five thousand and sixty-one dollars).
Likewise the Parent recorded goodwill for US$1,434,262 (a million, four hundred thirty-four thousand
and two dollars) from the acquisition of HSBC Bank Paraguay S.A. (now Banco GNB Paraguay S.A.)
produced by the acquisition price of US$68,089,880 (sixty-eight millions, eighty-nine thousand eight
hundred eighty dollars) compared to the book equity value of the bank at November 30, 2013 of
US$66,655,618 (sixty-six millions six hundred fifty-five thousands six hundred eighteen dollars).
The Parent also recorded goodwill of $ 16,729 (sixteen thousand seven hundred twenty nine pesos)
from the purchase of HSBC Colombia S.A (Now Banco GNB Colombia S.A.) from the acquisition
price of $203,476 (two hundred and three thousands, four hundred seventy-six pesos) compared to
the book equity value of 99.945835% of the Bank and of 4.6807% of the trust company Fiduciaria
HSBC S.A. at February 21, 2014 totaling $186,746 (one hundred eighty-six thousand seven hundred
forty-six pesos).
l.
Reappraisals
This account records the revaluation of investments available for sale in capital securities and
property and equipment, particularly real property.
The valuation gains on investments available for sale in capital securities are based on the variations
in the equity of the issuer.
In Colombia, real property is revalued on the basis of independent professional valuations,
differences being established in relation to adjusted net cost.
Works of art are recorded on the basis of independent professional market valuations.
If there is a loss on valuation, the Parent exercises prudence in making individual allowances for
each property.
m. Long-term debt
This is the face value of the subordinated bonds placed by the Parent on the international capital
market. Holders become creditors of the Parent.
n. Income received in advance
(Continued)
36
This account records deferred income and income received in advance in the course of business,
which is amortized over the period in which they are accrued or services are rendered.
o. Pensions
The Parent applied the provisions of Decree 4565 of December 7, 2010 which repealed Article 2 of
Decree 2984/2009, and stated that the percentage of amortization reached up to December 2009
and what remained to be provided for should be amortized from the financial statements at
December 31, 2010 through to 2029 on a straight line basis, but amortization could in any case be
completed before that date.
At December 31, 2013 the Parent had made provisions for 87.32% of the total, leaving 12.68% to be
amortized in future periods.
Pension payments are charged to the provision.
p. Accruals and Provisions
The Parent and Subsidiaries record provisions to cover estimated liabilities, where:
- A right has been acquired, and therefore an obligation has also been acquired
- Payment may be demanded or is probable and,
- The provision is justifiable, quantifiable and verifiable.
This account also records estimates for taxes, contributions and affiliations.
q. Foreign Currency Conversion
Operations in currencies other than dollars are converted into dollars and then expressed in
Colombian pesos using the method established for the financial system in the Uniform Plan of
Accounts (PUC) at the rate for the closing date. At June 30, 2014 the rate was $1,881.19 (pesos) and
at June 30, 2013 the rate was $1,929 (pesos) per US dollar.
These rates are certified by the Superintendency, and exchange differences are credited or charged
to earnings.
The exchange “own position” is the difference between all sight and term foreign currency assets and
liabilities, including currency purchase derivatives outside the exchange market, and contingent
accounts
r.
Recording of Financial Yields
Financial and other yields are recognized when accrued.
Suspension of interest accrual
The Parent ceases to accrue interest, monetary correction, exchange adjustment or income for other
items when a loan meets the following conditions.
(Continued)
37
Mode
Commercial
Consumer
Home mortgage
Past due more than
3 months
2 months
2 months
Therefore, these items do not affect the earnings statement until effectively collected. Meanwhile, the
records are kept in Contingent Accounts.
In cases where as a result of restructuring agreements or any other mode of agreement, there is
provision for the capitalization of interest recorded in Memorandum Accounts, or as balances of loans
written off including capital, interest and other items, they are recorded as deferred income, and
amortization is credited to earnings in proportion to amounts effectively collected.
s. Contingent Accounts
These accounts record operations in which the Parent and Subsidiaries acquire rights or assumes
obligations conditioned by possible future events of varying degrees of probability. Likewise, financial
yields are recorded in this account when loans are placed on non-performing status.
t.
Memorandum Accounts
These accounts record third-party operations whose nature does not affect the financial situation of
the Parent and Subsidiaries. They also include tax memorandum accounts which record the figures
used in preparing tax returns and memorandum accounts used for internal control or management
information.
(3) Principal Differences between Special Regulations and Accounting Practices Generally
Accepted in Colombia
The special regulations of the Superintendency in some cases depart from accounting practices generally
accepted Colombia. Examples are:
Equity investments available for sale
A loss on valuation(where the market value is lower than book value) for low/minimum turnover or unquoted
equity investments available for sale is recorded in the assets and in the equity section as a reduction in their
value; the generally-accepted practices require that an allowance be recorded and charged to expenses. If
the investments are high/medium-turnover the updating of the value directly affects book value in the assets
and the accumulated unrealized gain or loss in the equity section.
Property and Equipment
Generally-accepted practice requires that the net value of property plant and equipment whose inflationadjusted value exceeds 20 minimum monthly salaries (SMLM) at the close should be adjusted to present or
market value, recording revaluations or reserves as necessary. The special regulations contain no such
requirement.
(Continued)
38
Share Premium
Special regulations require that share premium be credited to Legal Reserve. Generally accepted practices
assign it to a separate account in the equity section.
Financial Statements
Decree 2649/1993 made the Statement of Changes in the Financial Situation part of the Basic Financial
Statements; however, the Financial Superintendency does not require it.
(4) Cash and due from banks
The following is the detail of cash in local currency and foreign currency expressed in local currency at June
30, 2014 and 2013:
Jun.2014
Local currency:
Cash
Banco de la República
Banks and other financial institutions
Remittances in transit
Clearing
Allowance against cash
Foreign currency expressed in local currency:
Cash
Banco de la República
Banks and other financial institutions
Clearing
Remittances in transit
Allowance against cash
Jun.2013
$ 249,802
$ 1,346,189
$
9,467
$
8,125
$
30
$
(6)
$ 1,613,607
$ 181,585
$ 646,697
$
1,210
$
20
$
13
$
(2)
$ 829,723
$
25,352
$ 633,871
$ 159,648
$
1,626
$
339
$
(5)
$
3,654
$
30
$ 514,639
$
0
$
43
$
0
$
820,831
$ 518,366
$ 2,434,438
$1.348.089
Local currency cash and deposits at Banco de la República and Central Banks in local currency are part of the
mandatory cash reserve held against customer deposits in each country.
At June 30, 2014 and 2013 there are outstanding pending reconciliation over 30 days for $6 and $2
respectively, fully (100%) provisioned in the Trust Business and CASH Unit Fund managed by Subsidiary
Servitrust GNB Sudameris, in the name of the Trust Company.
At June 30, 2014 and 2013, the allowance of $5 and $0 in foreign currency is an outstanding reconciliation item
with Banco GNB Paraguay S.A.
There are no restrictions on these balances other than the mandatory cash reserve.
(5) Money market and similar asset positions
The balance of money market and similar asset position at June 30, 2014 and 2013 is $2,059,316 and
$1,304,619.
(Continued)
39
At June 30, 2014 the balance was held as to $2,022,733 by Banco GNB Sudameris S.A., the Parent, as to
$11,040 by Servivalores GNB Sudameris S.A., and $25,543 by Banco GNB Paraguay S.A.
At June 30, 2013 the balance was held as to $1,295,508 by Banco GNB Sudameris S.A., the Parent, and
$9,111 by Servivalores GNB Sudameris S.A.
(6) Investments
At June 30, 2014 and 2013, the investments are the following:
Jun. 2014
Trading, debt securities
TES
Multilateral bonds
Bonds: Banco de la República
Term deposits – TDs
Bonds of issuers not supervised by the Superintendency
Trading, equity investments
Unit funds
Bolsa de Valores de Colombia
Held to maturity
TES (1)
TRD
TDs
Multilateral bonds
Agricultural bonds – TDA Classes “A” and “B” FINAGRO
Jun. 2013
$
$
$
$
$
$
391,432
8,147
12,239
507
1,116
413,441
$ 2,322,378
$
14,512
$
0
$
0
$
0
$ 2,336,890
$
$
$
31,447
0
31,447
$
$
$
46,865
751
47,616
$ 1,400,605
$
18,887
$
58,957
$
14,992
$
442,530
$ 1,935,971
$
$
$
$
$
$
273,809
27,198
58,950
14,824
346,255
721,036
$ 1,220,661
$
601,826
$
$
$
$
$
$
$
$
$
$
$
$
2,294
341
141
367
37
80
474
669
215,606
8
1,139
8
$
$
$
$
$
$
$
$
$
$
$
$
2,793
326
141
367
37
80
474
239
0
0
0
0
$
$
$
826
133
222,123
$
$
$
0
0
0
$
940,041
$
215,221
$ 1,155,312
$
$
$
24,279
622,249
646,528
$
$
4,248
Available for sale, debt securities
TES
Available for sale – equity investments
Bolsa Valores de Colombia
Unidades Fondo de Garantías – FOGACOL
Deceval S.A.
Cámara de Riesgo Central de Contraparte
ACH Colombia S. A.
Cámara de Compensación de Divisas
Servitotal GNB Sudameris S.A.
Cifin S.A.
Banco GNB Colombia
Servitrus GNB
Fiduciaria GNB
Servibanca
Companies outside Colombia
Bancard S.A.
Camara de Compensación Electrónica S.A. CCE
Transfer rights
Trading investments – debt securities
Available for sale, debt securities
Investments in guarantee of derivatives, debt securities
TES
9,112
(Continued)
40
Investments available for sale in guarantee of derivatives
0
$ 4,988,067
0
$ 4,362,617
There are no restrictions on these investments
(7) Loan portfolio
At June 30, 2014 and 2013, the Parent evaluated all loans, interest and other related items as required by
Superintendency Circular 100/1995 and made the minimum regulatory allowances. The result of the
classifications was as follows:
June 30, 2014 ($)
Commercial Secured
A – Normal
B - Acceptable
C - Appreciable
D - Significant
E - Unrecoverable
Subtotal
Capital
1,103,705
20,970
8,196
3,081
2,809
1,138,761
Commercial Unsecured
A - Normal
B - Acceptable
C - Appreciable
D - Significant
E - Unrecoverable
Subtotal
2,089,427
25,757
12,207
1,076
5,185
2,133,653
Consumer Secured
A - Normal
B - Acceptable
C - Appreciable
D - Significant
E - Unrecoverable
Subtotal
12,414
693
839
1,074
2,809
17,829
Allowance
Interest &
other
391
14
45
102
53
605
12,805
707
885
1,176
2,862
18,434
0
0
0
0
0
0
26,618
1,086
1,517
597
5,185
35,003
405
339
96
154
48
1,042
27,023
1,426
1,612
751
5,233
36,044
8
1
0
2
1
11
241
4
2
27
7
281
Other
Items
8
1
0
0
0
9
1,124,327
21,297
8,266
3,183
2,862
1,159,934
1,532,433
33,062
8,575
7,501
1,029
1,582,600
19,860 10,911
490
1
132
7
119
35
10
38
20,610 10,993
2,120,198
26,248
12,346
1,230
5,233
2,165,255
Interest
20,614
326
70
102
53
21,164
Total
Secured
Capital
Total
11,099
34
11
48
7
11,198
384
1
0
1
0
385
5
1
0
1
1
7
11,487
36
11
50
7
11,591
27,768
188
92
195
28
28,270
234
3
2
25
7
270
2,666,985
13,840
19,739
59,477
4,654
2,764,694
16,491
294
262
1,823
147
19,017
1,282
29
34
635
86
2,065
2,684,758
14,162
20,035
61,934
4,886
2,785,775
0
0
0
0
0
0
70,718
983
3,020
38,474
4,654
117,849
Home mortgage
A - Normal
B - Acceptable
C - Appreciable
D - Significant
E - Unrecoverable
Sub total
2,303
35
3
0
10
2,351
6
0
0
0
0
6
2
0
0
0
1
3
2,312
35
4
0
10
2,360
10,754
288
132
0
227
11,400
23
1
0
0
3
27
Subtotal Colombia
6,050,655
61,183 13,077
6,124,915
1,622,270
170,979
Subtotal Peru
1,936,789
17,344
1,178
1,955,311
0
92,786
1,342
94,128
953,824
13,940
0
967,764
0
35,725
834
36,559
92,466 14,256
9,047,991
1,622,270
299,490
Consumer Unsecured
A - Normal
B - Acceptable
C - Appreciable
D - Significant
E - Unrecoverable
Subtotal
Sub Total Paraguay
GRAN TOTAL
8,941,268
445 71,163
53
1,036
236
3,257
2,450 40,923
233
4,886
3,416 121,266
0
0
0
0
1
2
23
1
1
0
4
29
5,076 176,054
7,251 306,741
(Continued)
41
Balances for risk and qualification June 2014 ($)
RISK
Law
Law
Law
Law
Law
Subtotal Law
550/1990
Law 617/2000
Subtotal Law 617
Rest
Rest
Rest
Rest
Rest
Total Restructurings
TOTAL
Class
A - Normal
B - Acceptable
C - Appreciable
D - Significant
E - Unrecoverable
A - Normal
A - Normal
B - Acceptable
C - Appreciable
D - Significant
E - Unrecoverable
CAPITAL INTEREST
20,175
140
2,588
307
16,589
31
535
15
5,027
2
44,915
9,943
9,943
30,167
20,126
11,402
1,700
2,862
66,257
121,115
495
124
124
95
253
79
37
54
518
1,138
OTHER
1
0
0
0
0
1
0
0
7
2
7
8
0
24
25
TOTAL
DEBT
SECURED
20,316
881
2,895
56
16,621
5,227
550
470
5,030
0
45,411
10,067
10,067
30,269
20,381
11,488
1,745
2,917
66,800
122,278
6,634
9,943
9,943
73
5,119
2
5
721
5,918
22,495
ALLOW
CAPITAL
241
203
2,013
374
5,027
ALLOWV
INTERES
140
307
31
15
2
7,859
156
156
793
961
1,782
1,032
2,862
7,430
15,445
495
0
0
3
44
34
36
54
171
667
ALLOW TOTAL
OTHER ALLOW
0
381
0
511
0
2,044
0
389
0
5,030
0
0
0
0
1
4
8
0
14
14
8,355
157
157
797
1,006
1,819
1,077
2,917
7,616
16,127
INDEBTEDNS June 2014
Total Restructurings and laws
CLASSIFICATION
COMMERCIAL
RISK
LAW
CITY
DESCRIPTION
BARRANQUILLA
C- FOOD, BEVERAGES, TOBACCO, CONCENTRATES
F- MFR OIL PRODUCTS, FERTILIZERS, CHEMICALS, PLASTICS.
RUBBER
V- OTHER ACTIVITIES
Total BARRANQUILLA
BOGOTA
A- FARMING, HUNTING, FISHING
D- TEXTILES, LEATHER, SHOES
I- MFR MACHINERY, MOTORS, VEHICLE ACCESORIES ETC.
K- CIVIL CONSTRUCTION WORK
M- COMMERCE
P- TELECOMMUNICATIONS SERVICES
U- ASSOCIATIONS, LEISURE, CULTURE & SPORTS.
Total BOGOTA
CALI
RUBBER
G- MFR PHARMACEUTICALS, CHEMICALS FOR MEDICINE.
M- COMMERCE
Total CALI
CARTAGENA
RUBBER
K- CIVIL CONSTRUCTION WORK
Total CARTAGENA
MANIZALES
R- PUBLIC ADMINISTRATION
Total MANIZALES
MEDELLIN
H- MFR MINERAL AND METAL PRODUCTS
I- MFR MACHINERY, MOTORS, VEHICLE ACCESORIES ETC.
Total MEDELLIN
TOTAL LAW
LAW 617
CALI
Total CALI
TOTAL LAW 617
RESTRUCTURED
BARRANQUILLA
RUBBER
J- ELECTRICITY, GAS & WATER PRODUCTION/DISTRIBUTION
M- COMMERCE
No of
Ops
1
CAPITAL
($)
1
1
925
1
3
4
2
1
3
1
1
1
13
1
0
926
1,091
6,915
56
2,937
9
2,963
881
14,852
189
1
0
1
1
4
1,003
56
1,248
1
858
2
3
1
1
3
1
1
5
500
1,358
19,250
19,250
1,000
6,027
154
7,181
29
44,815
14
14
9,943
9,943
14
9,943
1
2,917
1
1
475
218
(Continued)
42
Total BARRANQUILLA
BOGOTA
RUBBER
M- COMMERCE
S- HEALTH AND SOCIAL SECURITY
T- EDUCATION
Total BOGOTA
BUCARAMANGA I- MFR MACHINERY, MOTORS, VEHICLE ACCESORIES ETC.
Total BUCARAMANGA
CALI
J- ELECTRICITY, GAS & WATER PRODUCTION/DISTRIBUTION
L- NEW AND USED CAR DEALING, SPARES AMD MAINTENANCE
Total CALI
MEDELLIN
O- FREIGHT AND PASSENGER TRANSPORT AND SIMILAR
Total MEDELLIN
TUNJA
L- NEW AND USED CAR DEALING, SPARES AMD MAINTENANCE
Total TUNJA
TOTAL RESTRUCTURED
TOTAL COMMERCIAL
CONSUMER
Law
BARRANQUILLA
W- EMPLOYEES AND RENTIERS
Total BARRANQUILLA
BOGOTA
Total BOGOTA
TOTAL LAW
RESTRUCTURE
D
ARMENIA
Total ARMENIA
BARRANQUILLA
Total BARRANQUILLA
BOGOTA
H- MFR MEINRAL AND METAL PRODUCTS
M- COMMERCE
O- FREIGHT AND PASSENGER TRANSPORT & SIMILAR
V- OTHER ACTIVITIES
Total BOGOTA
BUCARAMANGA
Total BUCARAMANGA
CALI
Total CALI
CARTAGENA
S- HEALTH AND SOCIAL SECURITY
Total CARTAGENA
CUCUTA
Total CUCUTA
IBAGUE
Total IBAGUE
MANIZALES
Total MANIZALES
MEDELLIN
V- OTHER ACTIVITIES
Total MEDELLIN
MONTERIA
Total MONTERIA
NEIVA
3
1
1
3,610
38
1,918
1
875
3
1
1
8
1
1
1
1
2
1
1
2
2
1,353
3,750
880
8,813
3,182
3,182
2,809
4,467
7,276
26
26
1,673
1,673
17
24,580
60
79,338
1
1
2
2
32
32
67
67
3
99
23
464
23
246
246
1
1
3
1
4
1,329
1,339
136
136
1
271
272
1
177
178
15
15
32
32
1
70
71
1
1
283
285
62
62
2
464
3,602
3,602
15
15
15
3
18
21,534
21,601
1,780
1,780
27
3,444
3,471
5
2,503
2,507
361
361
656
656
4
747
751
9
7
3,403
3,419
941
941
51
(Continued)
43
Total NEIVA
PASTO
Total PASTO
PEREIRA
Total PEREIRA
POPAYAN
2
7
7
71
71
40
51
105
105
830
830
465
Total POPAYAN
40
465
TUNJA
Total TUNJA
VILLAVICENCIO
Total VILLAVICENCIO
24
24
13
13
401
401
271
271
2,816
41,678
TOTAL CONSUMER
2,819
41,777
GRAND TOTAL
2,879
121,115
TOTAL RESTRUCTURED
June 30, 2013 ($)
Commercial Secured
A – Normal
B - Acceptable
C - Appreciable
D - Significant
E - Unrecoverable
Commercial
Unsecured
A - Normal
B - Acceptable
C - Appreciable
D - Significant
E - Unrecoverable
Consumer Secured
A - Normal
B - Acceptable
C - Appreciable
D - Significant
E - Unrecoverable
Consumer Unsecured
A - Normal
B - Acceptable
C - Appreciable
D - Significant
E - Unrecoverable
Home mortgage
A - Normal
B - Acceptable
C - Appreciable
D - Significant
E - Unrecoverable
869,157
23,990
7,462
1,117
4,036
905,763
=======
9,642
601
170
82
345
10,840
=======
3
1
0
0
40
44
====
878,802
24,591
7,632
1,200
4,421
916,647
========
1,168,973
44,228
9,412
1,979
3,061
1,227,653
========
9,830
901
866
513
4,036
16,145
=======
Allowance
Interest &
Total
other
207
10,036
30
931
156
1,021
82
595
386
4,422
861
17,005
===== =======
1,893,303
5,730
8,841
1,071
6,252
1,915,197
=======
17,291
49
15
80
88
17,523
=======
7,049
7
7
31
36
7,129
====
1,917,644
5,786
8,863
1,182
6,376
1,939,849
========
0
0
0
0
0
0
========
24,835
472
1,202
986
6,252
33,747
=======
391
25,226
3
475
9
1,211
110
1,096
124
6,376
636
34,383
===== =======
13,571
82
82
138
91
13,965
=======
259
2
1
4
5
271
=======
8
1
1
6
3
20
====
13,838
85
85
149
99
14,256
========
35,932
216
308
459
243
37,158
========
288
8
13
77
91
476
=======
6
294
0
8
2
14
11
87
8
99
26
503
===== =======
2,526,241
13,619
15,119
55,298
5,330
2,615,605
=======
16,471
258
204
1,666
184
18,784
=======
1,440
25
23
490
96
2,075
====
2,544,152
13,902
15,346
57,454
5,610
2,636,464
========
0
0
0
0
0
0
========
67,372
1,259
2,751
35,145
5,330
111,857
=======
440
67,812
45
1,304
161
2,912
2,121
37,265
280
5,610
3,046 114,903
===== =======
2,002
70
7
0
7
2,087
=======
6
0
0
0
0
6
=======
2
0
0
0
0
3
====
2,010
71
8
1
7
2,095
========
11,371
397
244
65
83
12,161
========
20
2
1
0
2
25
=======
1
21
0
3
0
1
0
0
0
2
1
27
===== =======
Capital
Interest
Other
Items
Total
Secured
Capital
(Continued)
44
5,452,617
=========
869,157
Grand total
47,424
=======
9,642
9,270
======
3
5,509,311
=========
878,802
1,276,971
=======
1,168,973
162,250
=======
9,830
4,570 166,820
====== =======
207
10,036
Balances for risk and qualification June 2013 ($)
RISK
Law
Law
Law
Law
Law
Subtotal Law 550
Law 617
Subtotal Law 617
Rest
Rest
Rest
Rest
Rest
Subtotal
Restructurings
TOTAL
Class.
A
B
C
D
E
A
A
B
C
D
E
CAPITAL
20,863
244
8,097
1,026
6,644
36,874
12,152
12,152
31,390
8,805
16,967
10,006
2,967
INTEREST OTHER
140
0
0
0
155
0
78
1
306
40
680
41
0
0
0
0
156
9
84
3
101
7
190
20
54
0
70,135
119,161
585
1,265
June 2013
TOTAL
DEBT
SECURED
21,004
1,613
244
152
8,252
5,061
1,105
157
6,990
0
37,595
6,984
12,152
11,849
12,152
11,849
31,555
540
8,892
1,116
17,075
55
10,216
28
3,021
721
39
81
70,759
120,506
2,458
21,291
ALLOW
CAPITAL
246
29
995
837
6,644
8,750
456
456
950
1,171
2,896
6,048
2,967
ALLOWV
INTERES
140
0
155
78
306
680
0
0
6
10
43
165
54
14,033
23,240
278
958
ALLOW
OTHER
0
0
0
1
40
41
0
0
0
1
3
19
0
TOTAL
ALLOW
386
29
1,150
916
6,990
9,471
456
456
957
1,182
2,943
6,232
3,021
23
64
14,334
24,262
INDEBTEDNS JUNE 2013
Total Ordinary and Special
Restructurings
CLASSIFICATION
RISK
CITY
DESCRIPTION
BARRANQUILLA
C- FOOD, BEVERAGES, TOBACCO AND CONCENTRATES
F- OIL BYPROUCTS CHEMICALS, FERTILIZERS, PLASTICS AND
RUBBER
V- OTHER ACTIVITIES
Total BARRANQUILLA
BOGOTA
A- AGRICULTURE, HUNTNG AND FISHING
C- FOOD BEVERAGES TOBACCO AND CONCENTRATES
D- TEXTILES LEATHER AND SHOES
I- MACHINERY, NOTORS, ACCESSORIES FOR VEHICLES ETC.
M- COMMERCE
O- FREIGHT AND PASSENGER TRANSPORT
U- CULTURE, LEISURE AND SPORTS.
Total BOGOTA
BUCARAMANGA C- FOOD, BEVERAGES, TOBACCO AND CONCENTRATES
M- COMMERCE
Total BUCARAMANGA
CALI
C- IFOOD, BEVERAGES, TOBACCO AND CONCENTRATES
F- OIL BY PRODUCTS, FERTILIZERS, CHEMICALS, PLASTICS, RUBBER
G- PHARMACEUTICALS AND CHEMICALS
M- COMMERCE
Total CALI
CARTAGENA
Total CARTAGENA
MANIZALES
D- TEXTILES., LEATHER AND SHOES
Total MANIZALES
MEDELLIN
H- MINERAL AND METAL PRODUCTS MFR.
I- MACHINERY, MOTORS, VEHICLES ACCESSORIES MFR ETC.
K- CONSTRUCTION & CIVIL WORKS
Total MEDELLIN
Total Law
CALI
No
Op
CAPITAL
1
4
8
2
1,548
22
11
9
1
1
1
1
1
1
1
1,574
1,633
225
96
152
9
10
2,963
1,613
16
2
1
6,700
120
1,200
3
1
1
1
1
1,320
189
0
1,003
56
4
1
1,248
19,250
1
1
5
19,250
15
19,250
6
1
1
1
1
5
19,250
92
7
6,128
154
400
9
6,782
44
14
36,874
12,512
(Continued)
45
Total CALI
14
12,512
1
1,107
2
2
1,107
8,737
2
1
1
1
946
571
390
13
2
2
1
3
1
1
1
1
10,656
56
7
63
2,809
2,809
41
41
13
14,676
71
28
63,702
639
28
325
639
5,030
325
1
4
1
8
1758
5,030
18
32
4
80
29,253
1772
150
29,388
2,044
150
282
2,044
3,918
282
1
265
3,918
13
3,697
266
11
3,710
285
11
44
285
1,020
44
92
1,020
981
92
1
1
1
367
981
6
1
10
4,197
370
65
4,214
1,103
65
11
1,103
236
11
103
236
1,352
103
1
49
1,352
12
593
50
22
605
470
22
17
470
464
17
464
Total Law 617
BARRANQUILLA J- ELECTRICITY, GAS AND WATER PRODUCTION/DISTRIBUTION
Total BARRANQUILLA
BOGOTA
F- OIL BYPRODUCTS, FERTILIZERS, CHEMICALS, PLASTICS AND
RUBBER
M- COMMERCE
Q- FINANCIAL INTERMEDIATION
Total BOGOTA
BUCARAMANGA M- COMMERCE
Total BUCARAMANGA
CALI
J- ELECTRICITY, GAS AND WATER PRODUCTION/DISTRIBUTION
Total CALI
MEDELLIN
Total MEDELLIN
Total Rest
TOTAL COMMERCIAL
ARMENIA
Total ARMENIA
BARRANQUILLA W- EMPLOYEES AND RENTIERS
Total BARRANQUILLA
BOGOTA
O- FREIGHT AND PASSENGER TRANSPORT
V- OTHER ACTIVITIES
Total BOGOTA
BUCARAMANGA W- EMPLOYEES AND RENTIERS
Total BUCARAMANGA
CALI
Total CALI
CARTAGENA
S- SOCIAL SECURITY, SOCIAL SERVICES, HEALTH
Total CARTAGENA
CUCUTA
Total CUCUTA
IBAGUE
Total IBAGUE
MANIZALES
Total MANIZALES
MEDELLIN
K CONSTRUCTION AND CIVIL WORKS
M- COMMERCE
V- OTHER ACTIVITIES
Total MEDELLIN
MONTERIA
Total MONTERIA
PASTO
Total PASTO
PEREIRA
Total PEREIRA
POPAYAN
V- OTHER ACTIVITIES
Total POPAYAN
TUNJA
Total TUNJA
VILLAVICENCIO
Total VILLAVICENCIO
(Continued)
46
Total Rest.
3608
55,459
Total Consumer
3608
55,459
Grand Total
3679
119,161
Gross loans by geographical zone at June 30, 2014 and 2013, by cities are as follows:
Country
Colombia
Zone
Armenia
Bucaramanga
Barranquilla
Bogotá
Buenaventura
Cartagena
Cali
Cúcuta
Ibagué
Medellín
Manizales
Montería
Neiva
Pasto
Pereira
Popayán
Santa Marta
Tunja
Villavicencio
Jun. 2014
Jun. 2013
$ 32,784
$ 196,830
$ 389,870
$ 3,328,208
$ 4,408
$ 222,441
$ 529,665
$ 28,389
$ 74,783
$ 624,912
$ 145,605
$ 42,348
$ 6,454
$ 27,134
$ 96,605
$ 68,792
$ 60,349
$ 59,911
$ 27,066
$ 29,354
$ 366,676
$ 3,196,908
$ 201,134
$ 1,116
$ 450,287
$ 178,424
$ 21,070
$ 47,694
$ 132,457
$ 478,690
$ 34,766
$ 3,338
$ 22,611
$ 105,568
$ 49,346
$ 54,834
$ 55,160
$ 23,187
$ 5,966,552
$ 5,452,617
$ 5.313
$ 0
78.791
$ 0
Total loans Banco GNB Sudameris S. A., Parent
$ 6,050,655
$ 5,452,617
Total loans Banco GNB Peru S. A.
$ 1,936,789
$ 0
$ 953,824
$ 0
$ 8,941,268
$ 5,452,617
Peru
Paraguay
Total loans Banco GNB Paraguay S. A.
Grand Total
Gross loans by economic sector at June 30, 2014 and 2013 are the following:
SECTOR
A- AGRICULTURE, HUNTING AND FISHING
B- EXTRACTIVE INDUSTRY
D- TEXTILES, LEATHER AND SHOES
Jun-14
Amount ($)
%
173,160 2.23%
Jun-13
Amount ($)
%
99,186 1.8%
7,693 0.39%
24,290
0.5%
96,427 1.56%
71,434
1.3%
100,857 1.78%
114,237
2.1%
E- TIMBER, CARDBOARD, PAPER, PACKAGING, PRINTING
F- OIL BY PRODUCTS, FERTILIZERS, CHEMICALS, PLASTICS AND
RUBBER
G- PHARMACEUTICALS AND MEDICINES
41,904 0.77%
46,204
0.9%
110,197 2.02%
142,430
2.6%
36,549 0.91%
51,194
0.9%
H- MINERAL AND METAL PRODUCTS
119,092 2.47%
142,432
2.6%
46,148 0.71%
35,253
0.7%
J- ELECTRICITY, GAS AND WATER PRODUCTION & DISTRIBUTION
179,413 2.74%
150,380
2.8%
K- CONSTRUCTION AND CIVIL WORKS
447,156 6.13%
328,034
6.0%
I- MACHINERY, MOTORS, VEHICLE ACCESSORIES ETC
(Continued)
47
L- NEW AND USED CAR TRADE, SPARES AND MAINTENANCE
37,641 0.59%
45,194
0.8%
298,084 5.17%
313,021
5.7%
26,873 0.54%
26,06
0.5%
221,093 3.12%
166,051
3.1%
4,511 0.15%
8,191
0.2%
175,193 2.08%
115,199
2.1%
67,789 1.39%
83,640
1.5%
S- SOCIAL SECURITY AND HEALTH
172,050 4.53%
173,673
3.2%
T- EDUCATION
188,424 2.79%
150,247
2.8%
38,628 0.58%
29,840
0.6%
572,221 8.98%
48.39
2,889,551
%
$ 6,050,655 100%
430,972
7.9%
2,705,311
49.6%
$5,452,617
100%
M- COMMERCE
N- HOTELS AND RESTAURANTS
O- FREIGHT AND PASSENGER TRANSPORT ETC
U- LEISURE, CULTURE AND SPORTS
V- OTHER ACTIVITIES
TOTAL
The following is the detail of loans by monetary unit:
Jun. 2014
Commercial
Consumer
Home mortgage
Local
Currency
$
915,604
$
11,198
$
2,351
Foreign
Currency
$
223,156
$
0
$
0
Total
$
929,153
$
Commercial
$
1,721,699
Consumer
$
Total
Jun.2013
$
$
$
Total
1,138,761
11,198
2,351
Local
Currency
$
741,191
$
13,965
$
2,087
Foreign
Currency
$ 164,572
$
0
$
0
$
$
$
Total
905,763
13,965
2,087
223,156
$
1,152,309
$
757,243
$
164,572
$
921,815
$
411,953
$
2,133,652
$
1,551,802
$
363,395
$
2,764,694
$
0
$
2,764,694
$
2,615,605
$
0
$
$
4,486,393
$
411,953
$
4,898,346
$
4,167,407
$
363,395
$
1,915,19
7
2,615,60
5
4,530,80
3
Total Banco GNB Sudameris S.A.Parent
$
5,415,546
$
635,110
$
6,050,655
$
4,924,650
$
527,967
$
5,452,61
7
Total Banco GNB Peru S.A.
$
1,315,504
$
621,285
$
1,936,789
$
0
$
0
$
0
Total Banco GNB Paraguay S.A.
$
553,673
$
400,151
$
953,824
$
0
$
0
$
0
Grand Total
$
7,284,723
$
1,656,546
$
8,941,268
$
4,924,650
$
527,967
$
5,452,61
7
Unsecured
At June 30, 2014 and 2013 loan purchases were as follows:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
LINES
Credivalores - Crediservicios S.A.S.
Originar Soluciones S.A.S.
Activos y Finanzas S.A.
Lagobo Distribuciones S.A. L.G.B. S.A.
Sumas y Soluciones S.A.S.
Estrategias en Valores S.A. ESTRAVAL
Comercializadora e Inversiones Textileros S.A.S. - COINVERTEX
Coordinadora de Servicios Financieros Ltda. “COOSERFIN”
Cooperativa de Trabajo Asociado de Servicios y Representaciones Integrales “Coopserin”
Innova Gestión de Negocios S.A.S.
Gestiones Financieras S.A.
Cooperativa Multiactiva de Militares Técnicos en Retiro y Personal Civil Coopdemil Ltda.
Jun. 14
$
0
$ 14,994
$ 13,045
$ 2,737
$ 2,914
$ 4,650
$
220
$
383
$
151
$ 243
$ 355
$ 152
$
$
$
$
$
$
$
$
$
$
$
$
Jun. 13
67,160
36,772
18,302
9,445
14,508
8,747
3,035
1,138
686
1,121
632
579
(Continued)
48
13.
14.
15.
16.
17.
18.
19.
Cooperativa Integral Bonanza
Sociedad Cooperativa de Servicios PIMAR
Casa Nacional del Profesor S.A. CANAPRO
El Cedro Cooperativa Multiactiva
Solucion Kapital S.A.
Procol de Colombia S.A.
Bayport Fimsa S.A.S
Total
$ 116
$
91
$
0
$
0
$
0
$
0
$
0
$ 40,050
$
179
$
144
$ 1,884
$ 4,133
$ 1,926
$
280
$
117
$ 170,788
These purchases are made with recourse to the seller, usually at a Premium (except some purchases with
Coopserin, which are made at a discount), amortized over the term of the Notes. The Parent administers the
portfolio. If a loan matures, or as agreed with each seller, if a loan falls into arrears the Agreements
Operations Coordinator processes a replacement with a new loan on similar conditions:
1. CREDIVALORES-CREDISERVICIOS S.A.S.
Loan purchases with recourse under notes against payroll-deduction operations at DTF (quarterly in
advance) + 8 points.
Operations with CREDIVALORES must comply with the following requirements:
-
Repayment in a minimum of 12 and a maximum of 72 instalments
Loans must be classed “A”
Overdue accounts must be replaced by loans of the same amount or more.
2. ORIGINAR SOLUCIONES S.A.S.
Loan purchases with recourse under notes against payroll-deduction operations of the Navy, Casur, Air
force Army, Social Security, retirement fund, teachers etc. at DTF (quarterly in advance) + 10 points.
Operations must comply with the following requirements:
-
Repayment in a minimum of 12 and a maximum of 60 instalments
This company is part of the same group as COOPERATIVA MULTIACTIVA DE SERVICIOS CON
EXPERIENCIA EN CRÉDITO – COOEXPOCREDIT.
3. ACTIVOS Y FINANZAS S. A.
Personal loans under payroll-deducted instalments for entities such as the tax authority DIAN and the
Colombian army, classed “A” Normal at a rate of DTF+ 11 points, quarterly in advance.
Operations purchased from Activos y Finanzas must have the following conditions
Minimum repayment term remaining, 12 instalments.
If a loan falls into arrears it must be replaced by another or other loan(s) for the same value or
higher.
Reselling of loans more than 90 days overdue.
If excess limit is approved, it is managed as a separate line.
(Continued)
49
4. LAGOBO DISTRIBUCIONES S.A. L.G.B. S.A.
The company generates payroll instalment loans for the police, army, pension fund, ISS etc. at DTF
(quarterly in advance) + 9 pts.
Operations must satisfy the following conditions:
-
Minimum 12 instalments.
Payment to the Parent is made by “SOCIEDAD COOPERATIVA DE MILITARES RETIRADOS
SOCOMIR”
Members of the Justice System cooperative JURISCOOP
Average operation size $1.0
If operations fall into arrears they must be replaced by others for the same of a higher value.
5. SUMAS Y SOLUCIONES S.A.S.
Assignment of loans under notes against payroll-deduction operations of the Ministry of Defense, the
army, the Navy, the Air Force, FOPEP, INPEC, CREMIL, etc. at DTF (quarterly in advance) + 10 points.
Operations with SUMAS Y SOLUCIONES must meet the following requirements:
-
Minimum repayment term: 12 instalments.
6. ESTRATEGIAS EN VALORES S.A. ESTRAVAL
A purchase of loans classed “A” Normal at DTF+ 11 points
Operations received from Estraval must satisfy the following characteristics:
-
Minimum repayment term 12 monthly instalments.
Minimum capital balance $1.0, maximum $100.0.
Approved: 2 grace periods
If an operation falls into arrears, it must be replaced by instruments for another or other operation(s) for
the same value or higher.
7. COMERCIALIZADORA E INVERSIONES TEXTILEROS S.A.S. - COINVERTEX
Offers the assignment of COOPITEX and COOPFUR cooperative loans from commercial operations,
formed by payroll instalment repayment at DTF (quarterly in advance) + 10 points
Operations must meet the following specifications:
-
Minimum 12 instalments
Loans purchased must be classified “A”.
If an operation is past-due it must be replace d by another debt for the same or a higher amount.
(Continued)
50
8. COORDINADORA DE SERVICIOS FINANCIEROS LTDA. “COOSERFIN”
The company generates payroll instalment loans for the army, navy, air force, FOPEP, National Police,
Cagen, Caja de Retiro, ISS, Casur etc. at DTF (quarterly in advance) + 10 pts
Operations for COOSERFIN must meet the following conditions:
Loans must be classed ”A”
If operations fall into arrears they must be replaced by others for the same of a higher value.
Loans overdue more than 90 days are resold
9. COOPERATIVA DE TRABAJO
INTEGRALES “COOPSERIN”
ASOCIADO
DE
SERVICIOS
Y
REPRESENTACIONES
Personal loans made by COOPSERIN and received by the Parent, on the payroll-deduction instalment
system for the Ministry of Defense, Navy, army, Air Force and Police. The operations are generated from
oral health services provided by the Oral Express Clinic at DTF (quarterly in advance) + 11 points.
Loans have the following features:
Minimum repayment period, 12 months
Loans must be rated “A”
Accounts in arrears must be replaced by other loans of the same or higher value
Resale of accounts in arrears for more than 90 days.
10. INNOVA GESTIÓN DE NEGOCIOS S.A.S.
This company offers the assignment of loans of Cooperativa UNISERCOOP who generate commercial
loans for payroll instalment operations of ISS, Ministry of Defense, National Police and others; in the
Departments of Antioquia, Atlántico, Cundinamarca, Huila, Magdalena, Risaralda, Tolima and Valle. The
rate is DTF quarterly in advance + 11 pts.
-
Repayment in a minimum of 12 instalments
Overdue accounts must be replaced by loans of the same amount or more
11. GESTIONES FINANCIERAS S.A.
This company offers the assignment of loans of Cooperativa de Conductores del Ministerio de Defensa
COOPECONMIN and Asistencia Familiar Cooperativa ASFAMICOOP, which generate commercial
operations from payroll instalment loans of the Police, Defense Ministry, INPEC, Office of the Governor of
Valle, Cagen, Fopep, amongst others, and Cooperativa Habitat, Coopimar, Coosercoop, Sumas y
Soluciones, at a purchase rate of DTF (quarterly in advance) + 11 pts.
-
Repayment in a minimum of 12 instalments
(Continued)
51
12. COOPERATIVA MULTIACTIVA DE MILITARES TÉCNICOS EN RETIRO Y PERSONAL CIVIL
COOPDEMIL LTDA.
The company generates payroll loans for the army, Navy, Air Force, Fopep, National Police, Cagen,
Retirement Fund, ISS, Casur etc. at DTF (quarterly in advance) + 10 pts.
Operations for COODEMIL LTDA must satisfy the following conditions:
-
If operations fall into arrears, the companies must replace them for other instruments for the same
or higher amounts.
Loans overdue more than 90 days are resold.
Average amount per operation $2.0, classed “A”.
13. COOPERATIVA INTEGRAL BONANZA
Loan purchases with recourse against notes for payroll—deduction operations of Fopep, Previsora,
Caprecom, Social Security, Police, Ministry of Defense, Ferrocarriles and Departmental Education Funds
at DTF (quarterly in advance). + 10 points.
Operations with COOBONANZA must meet the following requirements:
-
Repayment minimum 12 months, maximum 60 months
Capital balances of between $1.0 and $50.0
If operations fall into arrears they must be replaced by others for the same of a higher value
14. SOCIEDAD COOPERATIVA DE SERVICIOS PIMAR
Loans purchased with recourse, against payroll-deduction operations of Fopep, Previsora, Caprecom,
Social Security, Police, Ministry of Defense, Ferrocarriles and Departmental Education Funds at DTF
(quarterly in advance) + 10 points.
Operations must meet the following conditions:
-
Minimum repayment term 12 months, maximum 60 months
Capital balances between $1.0 and $50.0
If operations fall into arrears they must be replaced by others for the same of a higher value
Sale of loans to Burnside Investment S.A.
In order to recover some funds from past-due, fully provided accounts, the Parent regularly sells them –
especially consumer accounts – which at June 30, 2014 and 2013 totaled $7,567 and $10,872,902,514,
respectively. The Subsidiaries do not engage in this type of operation
(Continued)
52
Loans written off
The following is the detail of loans written off at June 30, 2014 and 2013:
Jun.2014
Commercial
Consumer
Home mortgage
Total
Capital Interest
$
96 $
7
$ 7,861 $ 292
$
0 $
0
$ 7,957 $ 299
Other Items
$
0
$ 164
$
0
$ 164
Jun.2013
Total
$ 104
$ 8,317
$
0
$ 8,420
Capital Interest
$
0 $
0
$ 12,672 $ 444
$
0 $
0
$ 12,672 $ 444
Other items
$
0
$ 247
$
0
$ 247
Total
$
0
$ 13,363
$
0
$ 13,363
Allowances
The movement of allowances against loan principal by mode of credit is the following:
Balance at June 30, 2013
Plus: Allowances expensed
Less :Written off
Allowances recovered
Condoned and reclassified
Home
mortgage
Commercial
Consumer
$ 49,892
$
112,333 $
$
$
$
$
$
$
$
$
$
$
47,364
(8,317)
(27,379)
41,209
165,210
$
$
$
Jun.2013
21
0
21
15,163
(104)
(10,402)
67,600
122,149
$
$
$
$
$
Total
25
$
162,250
4
0
(35)
12,137
12,131
$
$
$
$
$
62,531
(8,421)
(37,816)
120,946
299,490
General allowance
Opening balance
Plus: Home mortgage allowances
Closing balance
Jun. 2014
$ 24
$ 0
$ 24
(8) Bankers´ Acceptances and Derivatives
At June 30, 2014 and 2013, the detail of bankers´ acceptances, spot operations and derivatives is the
following:
Bankers´ acceptances in term: Spot operations
Currency purchase rights (peso dollar)
Currency sale rights (peso-dollar)
Currency purchase obligations (peso-dollar)
Currency sale obligations
Forwards
Currency purchase rights (peso/dollar)
Currency sale rights (peso/dollar)
Currency purchase obligations (peso/dollar)
Currency sale obligations (peso/dollar)
Swaps – speculative
Interest rate swap rights
Interest rate swap obligations
Jun.2014
$
8,859
$
941
$
10,066
$
(939)
$ (10,064)
$
4
Jun.2013
$
8,527
$
4,591
$
480
$ (5,073)
$
0
$
(2)
$
$
$
$
$
15
114,119
0
(57,049)
57,085
$
53,164
$
1,450
$ (50,718)
$ (1,442)
$
2,454
$
$
$
$
1,070
(1,036)
34
5,666
$
$
$
$
613
(607)
6
2,727
(Continued)
53
At June 30, 2014 and 2013, there were no legal or financial restrictions or charges on derivatives.
Currency forwards with customers are made subject to a study by the credit areas of the Parent and
Subsidiaries and a high proportion of them are covered with a financial sector counterpart.
(9) Accounts Receivable
At June 30, 2014 and 2013 the detail of Interest - other receivables is the following:
Interest
Interbank and overnight operations
Loans
Other:
Commissions
Dividends and other capital surpluses
Advances to contractors and suppliers
Staff advances
Cash shortages
Insurance claims
Payments for account of clients
Receivables from ISS - Colpensiones (1)
Sundry
(1)
Jun. 2014
Jun.2013
$
$10
$ 95,440
$ 95,450
$
3
$ 47,424
$ 47,427
$
0
$ 14,435
$
171
$
227
$
2
$
20
$
0
$ 6,025
$ 14,638
$ 35,518
$
774
$
103
$
825
$
81
$
4
$
42
$ 3,597
$ 4,573
$ 4,462
$ 14,461
Corresponds to the payment of discounts made by ISS-Colpensiones in June 2014 to
Banco GNB Sudameris borrowers through payroll instalment operations.
The following is the movement of the allowance against Accounts Receivable:
Jun.2014
Opening balance
Plus: allowance expensed:
Individual pro-cyclical
Individual counter-cyclical
Less: Recovery of allowances
Written off, reclassified and condoned
Closing balance
$
$
Jun.2013
5,190
2,395
$
$
$
327
$ (3,432)
$
659
$
5,139
4,976
2,261
$
259
$ (1,510)
$ (1,403)
$ 4,583
(10) Foreclosed assets
The detail of foreclosed assets at June 30, 2014 and 2013 is the following:
Real property
Movable assets
Adjusted cost
Less allowance
Jun.2014
14,931
3,631
18,562
(11,045)
7,517
Jun.2013
13,260
5,232
18,492
(9,492)
9,000
Leasing assets restored
The detail of leasing assets restored at June 30, 2014 and 2013 is the following:
Machinery and equipment
Less: Allowance
Jun.2014
$ 399
$ (72)
Jun.2013
$0
$0
$ 327
$0
(Continued)
54
The value of assets not used in the business at June 30, 2014 and 2013 is $15 and $0, respectively.
The detail of foreclosed and restored assets and assets not used in the business is as follows:
June 30, 2014
Under 1 year
Real property
Movable assets
Assets restored
June 30, 2013
1-3 years
3-5 years
9,559
11
0
0
212
153
0
0
1-3 years
3-5 years
Over 5 years
0
169
169
3,556
5,052
8,608
0
737
0
0
Under 1 year
Real Property
Movable assets
9,148
0
9,148
557
11
568
Over 5 years
5,160
2,730
15
177
Total
14,931
3,631
15
177
Total
Allowance
(8,096)
(2,949)
0
(72)
Allowance
13,261
5,232
18,493
4,460
5,032
9,492
At June 30, 2014 and 2013, foreclosed assets represented 0.10% and 0.001% of the assets of the Parent
and Subsidiaries. Given this very small proportion, the effect on results is insignificant. The management of
the Parent and Subsidiaries has made arrangements to sell these assets within the times provided for in
regulations.
The movement of the allowance against foreclosed assets is the following:
Opening balance
Plus:
Allowances expenses
Less:
Recoveries
Reclassifications
Closing balance
$
Jun. 2014
10,489
Jun.2013
$ 8,790
$
2,099
$ 1,206
$
$
$
0
(1,471)
11,117
$
0
$ (504)
$ 9,492
(11) Property and equipment
The net cost of Property and Equipment in use at June 30, 2014 and 2013 is:
Jun.2014
Land
Buildings
Equipment, furniture and fittings
Computer equipment
Vehicles
Assets in operational leasing contracts
Accumulated depreciation
$
$
$
$
$
$
$
$
13,737
85,985
41,306
123,795
2,274
0
(136,037)
131,061
Jun.2013
$
$
$
$
$
$
$
$
10,284
93,719
29,543
111,748
631
(117,604)
128,321
At June 30, 2014 and 2013, there are insurance policies to cover theft, fire, earthquake, riot, civil commotion,
explosion, volcanic eruption, power failure, loss or damage to premises and vehicles.
Real property values are supported by valuations made in the last three years.
(Continued)
55
Depreciation expensed at June 30, 2014 and 2013 was $11,077 and $8,621, respectively.
There are no mortgages or other charges on ownership of these assets and they have not been delivered on
pledge.
(12) Other Assets
At June 30, 2014 and 2013, there are permanent contributions to social clubs for $380.
The movement of prepaid expenses and deferred charges during the periods ended on June 30, 2014 and
2013 is the following:
Jun.2013
Prepaid expenses
Insurance
Rent
Equipment maintenance
Loan premiums pending amortization
Loan portfolio agreement expenses
Other
Credits
Jun.2014
$
$
$
$
$
$
$
237
33
130
8,563
890
819
10,672
$
$
$
$
$
$
$
413
65
0
0
0
8,519
8,997
$
0
$
0
$
30
$ 5,932
$
93
$
0
$ 6,055
$
650
$
98
$
100
$ 2,631
$
797
$ 9,338
$ 13,614
$
$
$
$
$
$
$
$
$
$
$
$
Total prepaid expenses and deferred charges $
15,297
1,196
321
1,779
636
19,713
13,985
69
0
0
383
53,379
64,051
$ 12,949
$
0
$
0
$ 4,810
$ 9,579
$
0
$ 4,606
$
0
$
89
$ 40,397
$
0
$ 72,430
$
0
$
367
$
275
$
0
$
0
$
994
$
0
$
10
$
0
$
0
$
106
$ 1,752
$ 28,246
$
829
$
46
$ 6,589
$ 10,215
$ 18,719
$ 18,591
$
59
$
89
$ 40,397
$
277
$ 124,057
$ 137,671
Deferred charges
Wealth tax (1)
Deferred income tax, debit
Remodeling of premises
Software
Improvements to rented premises
Commission on bond placements
HSBC regional integration project
Contributions and affiliations
Advertising
Excess of cost over book
Other
(1)
Charges
Under Law 1370/2009 and Decree 4825/2010, the Parent applied the rate of 6% to its net worth at January 1, 2011. The total tax accrued was
$38,036, which was debited to deferred charges. In 2014 $3,872 was charged to equity surplus and $277 to earnings. Amortization is being effected
over 48 months during 2011-2014
Intangibles - Goodwill
Goodwill Servivalores GNB Sudameris S.A.
Accumulated amortization Goodwill Servivalores GNB Sudameris S.A.
Goodwill - Nacional de Valores S.A.
Accumulated amortization, Goodwill Nacional de Valores S.A.
Goodwill Banco GNB Peru S.A.
Goodwill Banco GNB Paraguay S.A.
Goodwill Banco GNB Colombia S.A.
Jun.2014
Jun.2013
1,886
$ 1,886
$ (1,163)
$
2,014
$ (1,321)
$ 123,180
$
2,630
$ 16,168
$ 143,394
$ (974)
$ 2,014
$ (974)
$
0
$
0
$
0
$ 1,952
$
(Continued)
56
GOODWILL
Amortizations at June 30, 2014
SERVIVALORES GNB SUDAMERIS S.A.
Date
Amount
29/04/2008
Amortized in 2013
Months for
amortization
Months
120
74
$ 1,886
Pending amortization
Amount
Months
$ 1,163
Amount
46
$ 723
NACIONAL DE VALORES S.A.
Amount
Date
28/06/2010
Months
$ 1,654
72
48
$ 1,103
24
$ 551
$ 360
61
37
$ 218
24
$ 142
15/06/2011
Total
Amortized in 2014
Months for
amortization
Amount
Months
Amount
$ 2,014
BANCO GNB PERU S.A.
Date
US$
Amount US$
Months
04/10/2013
US$ 71,994,957
30/12/2013
US$ (1,587,587)
28/03/2014
US$ (3,248,396)
Total
US$ 67,158,974
234
$ million
Amount
Months
US$ 65,479,999
Amount
234
$ 123,180
TRM
30 Jun -2014
$1,881.19
BANCO GNB PARAGUAY S.A.
Date
US$
Amount US$
Months
31/03/2014
US$ 1,434,262
Total
US$ 1,434,262
234
$ million
Amount
Months
US$ 1,398,139
Amount
234
$ 2,630
TRM
30 Jun-2014
$1,881.19
BANCO GNB COLOMBIA S.A.
Date
Amount US$
AMORTIZACION
$ million
Months
21/02/2014
US$ 39,447
14/06/2014
US$ (22,724)
Total
US$ 16,729
240
238
Amount
$ 16,167
TRM
30-JUN-2014
$ 1,881.19
(Continued)
57
GOODWILL
Amortizations at June 30, 2013
SERVIVALORES GNB SUDAMERIS S.A.
Date
Amount
Months
amortization
Amortized 2013
Months
29/04/2008
$1,886
120
Amount
62
$ 974
Months
58
Amount
$ 912
NACIONAL DE VALORES S.A.
Date
Amount
Amortization in
Months
Amortized 2013
Months
Amount
Months
Amount
28/06/2010
$ 1,654
72
36
$ 827
36
$ 827
15/06/2011
$ 360
61
25
$ 147
36
$ 213
Total
$ 2,014
$ 974
$1,040
Goodwill Servivalores GNB Sudameris S.A.
For the purchase of Sumavalores S.A. Comisionista de Bolsa (now Servivalores GNB Sudameris S.A.), in
April 2008, there was goodwill for $1,886 amortized over 120 months. The balance pending amortization is
$770.
Goodwill Nacional de Valores
For the purchase of Nacional de Valores S.A. Comisionista de Bolsa, in June 2010 (now merged with
Servivalores GNB Sudameris S.A.), there is goodwill of $1,654, and from the purchase of 51,440 shares from
Sara Clemencia Mantilla on June 15, 2011 the amount was increased by $360 to $2,014; The goodwill is
being amortized in 72 instalments. The balance pending amortization is $780.
The merger by absorption of Nacional de Valores S.A. into Servivalores GNB Sudameris S.A. was authorized
by the Superintendency in Resolution 1871 of September 22, 2010 and formalized in Deed 3299 of October
1, 2010.
The detail of Other Assets at June 30, 2014 and 2013 is the following:
Goodwill
Staff loans
Deposits
Deferred payment letters of credit
Works of art and culture
Trust rights
Overages in advances and withholdings
Sundry (1)
Jun.2014
$ 143,394
$ 22,517
$
7,929
$
383
$
1,251
$
9,344
$
2,333
$ 98,608
$ 285,759
Jun.2013
1,951
19,778
619
0
1,251
9,176
12,822
25,877
71,474
(Continued)
58
(13) Deposits and demand accounts
At June 30, 2014 and 2013 the detail of Deposits and Demand Accounts is the following:
Term Deposits
Under 6 months
6-12 months
12-18 months
Over 18 months
Other
Banks and Correspondents
Special deposits
Demand accounts for banking services
Jun.2014
Jun.2013
$ 3,510,273
$ 1,322,902
$
681,414
$
927,482
$ 6,442,076
$
684,573
$ 1,256,741
$ 1,030,099
$
792,394
$ 3,763,807
$
$
$
$
$
$
$
$
12,715
90,568
47,433
150,716
0
633
24,656
25,289
At June 30, 2014 and 2013, the mandatory cash reserve held was calculated as follows on local currency
deposits:
Account
Current accounts
Special deposits
Demand accounts for banking services
Bank transaction tax
Checks drawn and pending collection
Collections
Other sundry payables
Cancelled accounts
Savings accounts
TDs at less than 18 months
TDs at 18 months and more
% reserve requirement
11.0%
11.0%
11.0%
11.0%
11.0%
11.0%
11.0%
11.0%
11.0%
4.5%
0.0%
(14) Money market and similar liability positions
At June 30, 2014 and 2013, the detail of money market and similar liability positions is the following:
Jun.2014
Interbank funds purchased
Transfer commitments – closed repos
Transfer commitments – simultaneous operations
Commitments on simultaneous operations short positions
$
34,802
$ 1,105,489
$
23,099
$
26,702
$ 1,190,092
Jun.2013
$
$
$
$
$
22,000
580,461
32,104
0
634,565
(15) Bankers´ Acceptances and Derivatives
The following is the detail at June 30, 2014 and 2013:
(Continued)
59
Jun.2014
8,543
$
Jun.2013
269
$ (19,751)
$
0
$
21,053
$
0
$
1,303
$
$
$
$
$
(4,715)
(43,419)
4,737
45,648
2,251
$
$
$
52,674
939
53,611
$
$
$
0
0
0
$
$
$
(781)
802
63,479
$
$
$
(977)
991
2,534
$
Bankers´ acceptances in term
Speculative forwards
Peso dollar purchase rights
Peso dollar sale rights
Peso dollar purchase obligations
Peso dollar sale obligations
Speculative futures
Speculative swaps
Interest rate rights
Interest rate obligations
According to Chapter XVIII of Superintendency Circular 100, derivatives that produce a fair price of exchange
unfavorable to the Parent and Subsidiaries should be recorded as a liability, separating the right and the
obligation.
If the fair price is favorable to the Parent and Subsidiaries, the two items should be recorded separately as an
asset.
(16) Bank Borrowings and other Financial Obligations
Bank borrowings and other financial obligations include long-and short-.term maturities. The details are the
following at June 30, 2014 and 2013:
June 30, 2014
Short term Medium term
< 1 year
Banco de Comercio Exterior, Bancoldex S.A.
FINAGRO
Findeter
Lenders outside Colombia
Colombian Treasury
5,104
632
0
23,446
0
29,182
1-3 years
27,848
941
2,288
37,581
0
68,658
June 30, 2013
Short term Medium term
< 1 year
1 - 2 years
FINAGRO
Findeter
Colombian Treasury
5,846
112
0
45,365
0
51,323
25,179
3,298
2,494
0
0
30,971
Long term
Over 3 years
108,394
0
620,131
0
1,701
730,226
Long term
over 3 years
98,208
0
571,781
0
2,025
672,014
Total
141,347
1,573
622,419
61,027
1,701
828,067
Total
129,232
3,410
574,275
45,365
2,025
754,308
These domestic loans to the Colombian companies are covered by notes and the foreign debt is in the form
of credit lines.
The interest cost expensed at June 30, 2014 and 2013 is:
(Continued)
60
Finagro
Findeter
$
$
$
$
$
Jun.2014
Jun.2013
3,374
45
20,105
312
23,836
$ 2,481
$
99
$ 20,943
$ 2,549
$ 26,072
(17) Accounts Payable – Other
At June 30, 2014 and 2013, the detail of Accounts Payable- Other is the following:
Turnover tax
Sales tax
Wealth tax
Suppliers
Payroll withholdings and contributions
Checks drawn and pending presentation
Collections effected (1)
Ascredibanco
Payments under mass agreements
Payables, redemption of Bonos de Paz
Payment agreement with ISS
Investments Banco GNB Peru S.A. (2)
Investments Banco GNB Paraguay S.A. (2)
Sundry
(1)
(2)
Jun.2014
$
1
$
1,875
$
1,796
$
5,430
$ 12,512
$
6,817
$
1,212
$ 16,551
$
5,389
$
9,133
$
3,249
$
45
$ 75,248
$
0
$
8,693
$ 147,951
Jun.2013
$
2
$
664
$
2,016
$ 13,854
$
8,226
$
5,870
$
1,808
$ 30,378
$
5,042
$
5,484
$
3,289
$
45
$
2,069
$
0
$
0
$ 78,747
Collections include official tax receipts, import taxes, property tax, wealth tax and others.
Corresponds to account payable for the investment in Banco GNB Peru S.A. and Banco GNB Paraguay S.A., under the purchase agreement
of May 11, 2013 signed with Latina American Holdings (UK) Ltda. and others.
(18) Long term debt
Subordinated bonds
At June 30, 2014 the Parent had subordinated bonds outstanding for US$250,000,000, equivalent to
$470,298. The detail is as follows:
The details are:
Amount Authorized by the Board
Issue Date
Offer Amount
Term (months)
Maturity
Effective rate
Interest paid
Book value at June 30, 2014
US$ 350,000,000
30-Jul-12
US$ 250,000,000
120
30-Jul-22
7.5% p.a.
Half-yearly in arrears
$470,298
The bonds have a ten-year (10) maturity.
Ordinary bonds
At June 30, 2014 the Parent had ordinary bonds outstanding for US$300,000,000 equivalent to
$564,357.
(Continued)
61
Amount Authorized by the Board
Issue Date
US$500,000,000
02-May-13
Offer Amount
Term (months)
Maturity
Effective rate
Interest paid
Book value at June 30, 2014
US$ 300,000,000
60
02-May-18
3.875% p.a.
Half-yearly in arrears
$564,357
The bonds have a five-year (5) maturity.
(19) Pensions
The calculation is made using the method of past fractioned income under article 112 of the Tax Code, and
the rules of Decree 2783 of December 20, 2001 with reference to tax considerations, and the terms of
Resolution 1555/2010 (the Colombian Mortality Table – Rentiers - RV08).
The Parent presented its actuarial calculation for 2013 for $17,757 to the Superintendency, which approved it
in Letter 2013102996-0003-000, of December 17, 2013.
The actuarial calculation for pensions at June 30, 2014 was $16,623.5, against which the Parent has made a
provision of $15,604.6.
The following is the movement of the pensions account at June 30, 2014.
Note Actuarial calculation June 2014
Balance at December 31, 2013
Actuarial adjustment 2013
Payments made in 2014
Amortizations in 2014
Actuarial
calculation
$ 17,756.58
$
(140.45)
$
(992.59)
$
0
$
16, 623
Pensions pending
amortization
$
(2,251.53)
$
240.00
$
0
$
992.59
$
(1,018.94)
Balance
$ 15,505.04
$
99.55
$
(992.59)
$
992.59
$ 15,604.60
(20) Other Liabilities
The detail of Other Liabilities is as follows
Deferred income (capitalized interest)
Advance on capital increase
Deferred payment letters of credit
Deferred income tax
Cancelled accounts
Consortia and temporary unions
Third party management accounts
Other
Jun. 2014
$ 1,049
$
0
$
383
$ 1,574
$
961
$
70
$
0
$ 24,949
$ 28,986
Jun. 2013
$
942
$ 135,030
$
0
$
1,223
$
347
$
72
$
0
$
2,131
$ 139,745
(Continued)
62
(21) Accrued Liabilities and Provisions
At June 30, 2014 and 2013, the detail of Accrued Liabilities and Provisions is the following:
Employment liabilities
Taxes
Other:
Contributions
Fines, litigation and claims
Provisions for public services
Pension bond contingencies
Provision for accrued unpaid expenses
Minority interest
Jun. 2014
$ 5,575
$ 27,428
Jun. 2013
$ 5,044
$ 22,752
$ 8,485
$ 7,463
$
337
$
468
$ 19,630
$ 69,386
$
260
$ 2,823
$
406
$
2
$ 8,531
$ 39,818
$ 9,818
$ 79,204
$ 9,310
$ 49,128
(22) Capital
At June 30, 2014 and 2013, the authorized capital of the Parent is as follows:
Jun. 2014
75,000
66,015
165,037,234
22,462,766
Authorized
Subscribed and paid
No. of paid shares at $400 (pesos) par value each
No. of shares pending subscription
Jun. 2013
75,000
60,459
151,147,182
36,352,818
(23) Legal (Mandatory) Reserve
All financial institutions must allocate 10% of annual net profits to this reserve until it reaches 50% of
subscribed capital. It may be reduced to less than that level (50%) when profits exceeding undistributed
profits need to be absorbed.
The following is the detail of the Reserve at June 30, 2014 and 2013.
Appropriation of net profit
Share premium
Jun- 2014
$ 495,633
$ 469,433
$ 965,066
Jun- 2013
$ 404,366
$ 338,715
$ 743,081
(24) Contingent Accounts
At June 30, 2013 and 2014, the detail of Contingent Accounts is the following:
Creditor
Securities received for money market operations
Bank guarantees
Letters of credit
Loans approved, pending disbursement
Credits opened
Third party counterpart limits for derivatives
Other
Debtor:
Securities delivered for money-.market operations
Interest on loans
Jun- 2014
Jun- 2013
$ 1,989,751
$
742,864
$
53,114
$
149,880
$
241,411
$
1,752
$
24,877
$ 3,203,649
$ 1,022,161
$
9,424
$
32,104
$
7,888
$
128,676
$
0
$
36,936
$ 1,237,189
$ 1,155,312
$
10,600
$ 1,165,911
$
$
$
646,528
9,277
655,805
(Continued)
63
(25) Memorandum Accounts
At June 30, 2014 and 2013, the detail of Memorandum Accounts is the following:
Debtor:
Assets and securities delivered in custody
Assets and securities delivered in guarantee
Remittances and other outward collections
Assets written off
Property and equipment fully depreciated
Direct credit lines
Asset inflation adjustment
Fiscal value of assets
Receivables on trading investments in debt securities
New agricultural loans
Sovereign guarantee
Accepted by credit establishments
Investments held to maturity
Trading investments in debt securities
Investments in debt securities available for sale
Other (1)
Creditor:
Assets and securities received in custody
Assets and securities received in guarantee of future loans
Assets and securities received as admissible collateral
Assets and securities received as non-admissible collateral
Inward collections
Equity inflation adjustment
Capitalization of equity revaluation
Yields on trading investments in debt securities
Fiscal value of equity
Classification of loans by category and type of collateral
Control of co-debtors
Control of valuations
Reference: agreements
Other
Jun.2014
Jun. 2013
$ 5,178,316
$
10,396
$
4
$
660,540
$
83,876
$
265,782
$
14,272
$ 11,661,067
$
227,786
$
9,488
$
0
$
0
$ 1,935,971
$ 1,155,079
$ 1,434,760
$ 11,355,702
$ 33,993,034
$ 4,541,624
$
25,532
$
51
$
196,101
$
77,729
$
87
$
15,776
$ 8,387,755
$
247,250
$
11,363
$
301,008
$
420,029
$
0
$ 2,364,080
$ 1,224,084
$ 8,597,706
$ 26,410,175
$
128,091
$
692,221
$ 5,518,611
$ 2,781,276
$
64,102
$
20,433
$
16,278
$
99,962
$
943,264
$ 9,036,779
$ 1,664,001
$ 3,278,698
$ 12,074,136
$ 4,221,336
$ 40,539,188
$
196,477
$
592,442
$ 1,331,271
$ 1,396,578
$
945
$
25,708
$
15,998
$
150,653
$
625,203
$ 5,503,754
$ 1,590,057
$ 3,056,770
$ 11,952,713
$ 3,556,069
$ 29,994,638
211,131
$
11,593
$
224,466
$
657,713
$
430,161
$
$ 1,535,064
$
$
$
$
$
$
Trust Memorandum Accounts
Unit funds
Property trusts
Management trusts
Other trusts
Memorandum Accounts Fiduciaria Servivalores GNB Sudameris S.A.
228,413
11,993
292,451
653,185
448,422
1,634,464
(26) Income Tax and Equity Tax (CREE)
Colombian tax regulations do not allow the consolidation of income tax filings and therefore the losses of one
subsidiary may not be offset against the profits of another. Under Law 1607/2013 the tax rate fell from 33% to
25% and an “Equity Tax” (“CREE”) was introduced at a rate of 8%; but for the years 2013, 2014 and 2015 the
rate will be 9%.
For the purposes of tax liability, since 1999, the calculation of income tax liabilities takes account of a
“notional” or “presumed” minimum yield on capital recorded at the end of the previous year, of 3%, from
(Continued)
64
which exempted income pay be deducted. Inflation-adjusted tax losses reported for 2003- 2006 may be
charged off over the next eight years, at up to 25% in any one year. Losses reported for 2007 onwards may
also be fiscally adjusted and offset against subsequent profits without limitation of time or amount.
(27) Transactions with Related Parties
“Related parties” are those related to major shareholders, directors and companies in which the Parent and
Subsidiaries hold more than 10% of the shares or there are economic, administrative or financial interests;
and companies in which shareholders or directors have an interest of more than 10%.
At the close of June 30, 2014, shareholder loans were as follows:
ID
Name
Op. #
Currency
US$
balance
TRM
(Pesos)
$ million
equivalent
Due
Rate
830137184
Glenoaks Investments S.A.
436
US$
10,000,000
1,881.19
$ 18,812
15/07/2015
Libor + 5.90
830137184
Glenoaks Investments S.A.
438
62,000,000
1,881.19
116,634
21/07/2015
Libor + 5.90
Total
US$
72,000,000
Collateral
SBLC of GNB
Sudameris Bank
S.A. Panamá
for US$36,000,000
$135,446
Operations with Directors and Legal Representatives
Directors´ fees were paid for $ 34 and $32 at June 30, 2014 and 2013, respectively.
At June 30, 2014 and 2013, the Directors for the purposes of the disclosures in this Note were the individuals
registered with the Superintendency as such prior to those dates.
(28) Other operating income and expenses – exchange
Other Operating Income from exchange at June 30, 2014 and 2013 is as follows:
Operating income from exchange difference
Operating expense from exchange difference
Jun. 2014
$ 1,343,012
$ 1,338,130
Jun. 2013
$ 97,067
$ 94,880
The variation in income and expenses due to exchange differences is the result of quite strong fluctuations in
currency-dollar rates and a high currency-trading volume.
The Subsidiaries outside Colombia reported the following balances of operating income and expenses from
exchange operations:
Operating income from exchange difference
Operating expense from exchange difference
Banco GNB Peru S.A.
$ 1,199,811
$ 1,196,402
$
3,409
$ 113,124
$ 111,106
$ 2,018
Total
$ 1,312,935
$ 1,307,508
$
5,427
(Continued)
65
(29) Other Operating Income and Expenses
The following is the detail at June 30, 2014 and 2013
Jun- 2014
$
19
$
133
$
810
$ 6,645
$ 7,008
$ 14,615
Operating risk recoveries
Cables, postage and telephones
Checkbook sales
Income difference under insurance agreements
Other
Jun- 2013
$
2
$
131
$
828
$ 6,341
$ 7,672
$ 14,974
The following is the detail of Other Operating Expenses at June 30, 2014 and 2013
Turnover tax, property tax, registration tax, stamp tax, vehicle tax, surcharges, etc.
Rent
Contributions and affiliations
Insurance
Maintenance and repairs
Office remodeling
Sundry:
Cleaning and security
Temporary services
Advertising
Public relations
Public services
Travel
Transport
Stationery
Donations
Data processing
Judicial expenses
Inquiries
Cash transport
Sundry
Jun. 2014
5,990
7,933
15,171
8,080
15,823
10,661
719
Jun.2013
$ 4,576
$ 5,153
$ 7,798
$ 3,813
$ 12,595
$ 7,540
$ 1,759
$
4,419
$
9,506
$
3,716
$
18
$
8,525
$
366
$
6,491
$
1,855
$
140
$
1,294
$
165
$
364
$
93
$ 17,318
$ 118,647
$ 3,384
$ 7,848
$
992
$
17
$ 5,736
$
197
$ 5,673
$ 1,421
$
51
$ 1,346
$
139
$
360
$
91
$
998
$ 71,487
$
$
$
$
$
$
$
(30) Non-operating income and expenses
The following is the detail of non-operating income at June 30, 2014 and 2013:
Profit on sale of property and equipment
Profit on sale of foreclosed assets
Rent
Recoveries
Loans written off
Receivables written off
Other provisions
Assets written off
Other recoveries
Return premium Fogafìn
Other
Non-operating expenses
Operating risk losses
Fines and litigation
Minority interest
Sundry, local currency
Jun.2014
$
11
$
120
$
357
$
$ 1,843
$
535
$
110
$
87
$
668
$ 4,351
$ 5,262
$ 13,344
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
344
2,455
957
2,274
6,030
Jun.2013
2
2
512
2,274
878
28
114
550
4,073
728
9,161
760
264
526
79
1,629
(Continued)
66
(31) Statutory Controls
During 2014 the Parent and Subsidiaries complied with requirements for cash reserves, own positions,
capital adequacy, mandatory investments; they paid FOGAFIN deposit insurance premiums and levies
imposed by supervisory authorities; and national and municipal taxes payable on operations, in accordance
with legal requirements for each entity.
(32) Reclassifications
At June 30, 2014 and 2013 some accounts have been reclassified for presentation purposes.
(33) Significant developments
Acquisition process of HSBC Colombia, Peru, Paraguay and Uruguay.
Banco GNB Sudameris S.A. signed a share purchase agreement on May 11, 2012 with HSBC Latin
American Holdings (UK) Ltd. and others to acquire all the shares of HSBC Bank Peru S.A., HSBC Bank
Paraguay S.A., HSBC Bank Uruguay S.A. and HSBC Colombia S.A (including the Subsidiary HSBC
Fiduciaria).
The Parent has created a Senior Management team to develop and execute the integration process.
The Superintendency authorized the Parent to acquire 100% of the HSBC Banks in Peru, Paraguay and
Uruguay and the Parent obtained authorizations to formalize the acquisitions in Peru and Paraguay; the
application is before the Uruguayan authorities; and authorization to purchase HSBC Colombia S.A., was
requested from the Colombian Superintendency. This was granted on December 23, 2014 in Resolution
2334/2014.
The acquisition of HSBC Bank Uruguay was terminated by common agreement of the parties to the Purchase
Agreement of May 11, 2012.
(34) Post-closing events
On February 21, 2014 the Parent acquired 99.9% of HSBC COLOMBIA S.A. and 4.6807% of HSBC
FIDUCIARIA S.A. which thereupon changed their names to Banco GNB Colombia S.A. and Fiduciaria GNB
S.A. (the Parent holds 94.9471% of the Fiduciaria), and Banco GNB Sudameris S.A. became the Parent or
controlling interest in both.
(35) Convergence with International Financial Reporting Standards - IFRS
According to Decree 2784/2012 the Parent and Subsidiaries in Colombia are part of Group 1 for financial
reporting and the transition to IFRS starts on January 1, 2014. The first set of IFRS-compliant accounts will
be that for 2015.
(Continued)

table of contents - Banco GNB Sudameris

Transcription

Similar documents

Bank Macro Name CHange

EQUITY - RBFCU

BRAZOSP RT DEBT CONSOLIDATION LOANS

Newsletter 01-15.indd

material safety data sheet

View Report - Financial Center Credit Union

Spring 2011 - RC SSE Federal Credit Union

Member Services - Credit Union 1

special auto, bike, boat and RV rates

LSFCU - MyCUResource