BANCO DE BOGOTÁ S.A. AND SUBORDINATES Notes to the

Transcription

BANCO DE BOGOTÁ S.A. AND SUBORDINATES
Notes to the Consolidated Financial Statements
At June 30, 2014 and December 31, 2013
(In Millions, Except the Exchange Rate and Net Profit per Share)
(1) Reporting Entity
Banco de Bogotá S.A. is a private entity headquartered in the city of Bogotá D.C. It was incorporated
through Public Instrument No. 1923, drawn up and authenticated on November 15, 1870 by Notary Public
No. 2 in Bogotá D.C. Its license to operate was renewed once and for all by the Colombian
Superintendency of Finance. The duration of the Bank, as established in its by-laws, extends to June 30,
2070. However, the organization may be dissolved or it duration extended prior to that date. The business
of the Bank is to perform all operations and to enter into all contracts legally authorized for commercial
banks, subject to the requirements and limitations imposed by Colombian law.
The Bank was operating at June 30, 2014 with ten thousand four (10.004) employees on contract, three
hundred thirty-three (333) working under civil apprenticeship agreements, one thousand one hundred
twenty-one (1,121) temporary staff members and one thousand two hundred eighty-five (1,285)
employees contracted with Megalínea. In addition, through outsourcing with specialized companies, the
Bank also employs a total of three thousand five hundred thirty-nine (3.539) individuals through six
hundred three (603) offices, five (5) corporate service centers (CSC), four (4) small-business service
centers, fifty (50) collection and payment offices, eighteen (18) business advisory offices, ninety-three (93)
non-own-code bank branch extension offices, thirteen (13) bank branch extension offices, eleven (11)
premium offices, six (6) centers specialized in home mortgages, one thousand eight hundred seventeen
(1,817) banking correspondents, thirteen (13) Servicajas, two (2) customer-only service offices, eight (8)
payroll installment lending offices with special services, twenty-five (25) payroll installment lending
centers, five (5) core offices, two (2) agencies abroad, one in New York City and the other in Miami, and
one (1) branch in Panama City, which is licensed to operate as a local bank.
These consolidated financial statements include the following companies.
Almacenes Generales de Depósito ALMAVIVA S. A. is involved primarily in the deposit, preservation
and custody, management and distribution, purchase and sale of merchandise and products of domestic
and foreign origin for its clients. The company also issues warehouse receipts and collateral certificates or
warehouse liens. ALMAVIVA S. A. consolidates with its subordinates Almaviva Global Cargo,
Comercializadora Internacional S. A., South Logistic S. A. and Zona Franca S.A.
Fiduciaria Bogotá S.A. enters into mercantile trust and agency trust agreements without transfer of
ownership, as provided for by law. Its primary business is to acquire, dispose of, encumber and manage
movable assets and real estate, and to invest as a debtor or creditor in all types of lending operations.
Corporación Financiera Colombiana S.A. raises and allocates capital to promote the creation,
reorganization, merger, transformation and expansion of all types of companies, to acquire ownership
interest in those companies, and to encourage third parties to do so. It also offers these companies
medium and long-term financing and specialized financial services that contribute to their development.
These companies do not include those subject to control and supervision by the Colombian
Superintendency of Finance, with the exception of financial service firms and lending institutions.
Corporación Financiera Colombiana S.A. consolidates with a number of financial subordinates; namely,
Leasing Corficolombiana S.A., Banco Corficolombiana (Panama) S.A. (a finance company located outside
the country), Fiduciaria Corficolombiana S.A. and real-sector subordinates Organización Pajonales S.A.,
Hoteles Estelar de Colombia S.A., Gas Comprimido del Perú S.A. (a company outside the country),
Valora S.A., Proyectos de Infraestructura S.A., Epiandes S.A., Promotora y Comercializadora Turística
Santamar S.A., Colombiana de Licitaciones y Concesiones Ltda., Tejidos Sintéticos de Colombia S.A.,
Plantaciones Unipalma de los Llanos S. A., Pizano S.A. (currently being restructured), Estudios y
Proyectos del Sol S.A. (formerly Inversora en Aeropuertos S.A.), Industrias Lehner S.A., Proyectos de
2
BANCO DE BOGOTÁ Y SUBORDINADAS
Ingeniería y Desarrollos S.A.S., CFC Gas Holding S.A.S., CFC Private Equity Holdings S.A.S. and CFC
Energy Holding S.A.S..
The financial sector shareholders of Corporación Financiera Colombiana S.A. signed an agreement giving
Banco de Bogotá control of the company, as it is the largest shareholder. The purpose was to consolidate
the financial statements pursuant to External Circular 100/1995, issued by the Colombian
Superintendency of Finance, and Law 222/2005.
Sociedad Administradora de Pensiones y Cesantías Porvenir S. A. was incorporated on October 22,
1991 and is headquartered in Bogotá. Its business is to administer and manage the type of pension and
severance funds authorized by law. Under the law, both these funds are third-party portfolios separate
from the portfolio of the company managing them. Porvenir consolidates its financial statements with
Gestión y Contacto S.A.
Ninety-nine point ninety-nine percent (99.99%) of AFP Horizonte Pensiones y Cesantías S.A. was
acquired on April 18, 2013. The merger by absorption of AFP Horizonte S.A., was completed, thereby
consolidating Porvenir as the largest pension and severance fund manager in the country in terms of the
resources it manages and the number of affiliates.
Casa de Bolsa S.A. Sociedad Comisionista de Bolsa (formerly Valores de Occidente Sociedad
Comisionista de Bolsa S.A.) is a private company established through Public Instrument No. 6771 drawn
up on July 22, 1993. Under a brokerage agreement, it offers financial services that include the purchase
and sale of securities listed on the stock exchange, securities and mutual fund management, proprietary
trading, securities brokerage and consulting on capital markets, under the terms and conditions
determined by the Board of Directors of the Central Bank of Colombia (Banco de la República). It was
authorized by the Colombian Superintendency of Finance to conduct its business pursuant to Resolution
No. 1024 issued on August 13, 1993. The duration of the company is until 2043.
Banco de Bogotá is invested directly in this subordinate, with twenty-two point seventy-nine percent
(22.79%) ownership interest, and indirectly through Corporación Financiera Colombiana S.A., a
subordinate company in which it has thirty-eight point ninety-five percent (38.95%) ownership interest.
Banco de Bogotá S.A. Panamá operates in the Republic of Panama with a general and international
license to conduct banking business in and outside that country. It consolidates with the subordinate entity
known as Banco de Bogotá (Nassau) Limited.
Bogotá Finance Corporation is a financial entity created specifically to issue floating-rate securities
guaranteed by the parent company (the Bank). In recent periods, the company has maintained an
investment as its only income-earning activity.
Leasing Bogotá S.A. Panamá was established in 1972 under the Corporate and Partnership Act of the
Republic of Panama and currently operates solely as a company holding shares in other financial-sector
firms. It is owned entirely by Banco de Bogotá, S.A. and consolidates with BAC Credomatic Inc. and
Banco Bac Panama (formerly BBVA Panama).
(Continued)
3
-
Acquisitions
On December 19, 2013, Banco de Bogota S.A., through its subsidiary Credomatic International
Corporation (CIC), which operates as part of BAC Credomatic in Central America, acquired 100 % of
all issued and outstanding shares in Banco Reformador de Guatemala and Transcom Bank
(Barbados) Limited , a subsidiary of the Bank. The acquisition cost US$421 and the resources
available in CIC were used to fund it, as follows: (i) $282 from securitization of future American
Express credit card flows: and (ii) a short-term loan for $ 139.
On December 19, 2013, Banco de Bogota S.A., through its subsidiary Leasing Bogota S.A. Panama,
acquired 98.92 % of the issued and outstanding shares in Banco Bilbao Vizcaya Argentaria (Panama)
S.A. (BBVA Panama ), now BAC Bank Panama, for US$505. Banco de Bogota S.A. issued $1.3 billion
in ordinary shares, with preferential subscription rights (Note 20), to provide Leasing Bogota S.A.
Panama with the resources required for the transaction.
The following are the assets and liabilities received in these purchases, as registered according to U.S.
GAAP at December 31, 2013.
(Figures in USD)
Assets
Cash and cash equivalents
Certificates of deposit
Investments in securities
Loans receivable
Property and equipment
Assets awarded
Investments in equity securities
Other assets
Total acquired assets
Liabilities
Deposits
Obligations payable
Other liabilities
Non-controlling interest
Total assumed liabilities
Total acquired net assets
Grupo Reformador
Banco BAC Panamá
USD
270,778,042
51,567,509
208,680,690
1,005,313,232
24,628,106
11,909,715
0
26,504,036
1,599,381,330
387,778,961
1,428,878
29,495,402
1,417,286,521
8,969,231
0
4,220,720
30,077,779
1,879,257,492
658,557,003
52,996,387
238,176,092
2,422,599,753
33,597,337
11,909,715
4,220,720
56,581,815
3,478,638,822
USD
1,204,250,781
209,657,059
32,481,657
0
1,446,389,497
152,991,833
1,533,408,497
46,571,429
109,219,039
2,043,148
1,691,242,113
188,015,379
2,737,659,278
256,228,488
141,700,696
2,043,148
3,137,631,610
341,007,212
USD
Total Acquisitions
The following equivalents were developed to determine goodwill, pursuant to Colombian accounting
principles and instructions from the Colombian Superintendency of Finance.
(Figures in USD)
Detail
Equity US Gaap
Percentage acquired
Acquired equity US Gaap
Impact of equating adjustments
Loan portfolio
Interest suspension
Costs & commissions for execution
Long-life assets
Foreclosures
Guarantees
Deferred tax
Transcom
40,622,587
100%
40,622,587
(779,450)
(862,634)
0
0
0
122,490
0
0
Reformador
112,369,246
100%
112,369,246
(1,137,096)
(3,373,164)
(12,575)
(518,920)
(325,651)
365,706
0
1,418,343
Banco BAC Panamá
190,058,528
98.92%
188,015,379
(650,033)
(4,782,273)
(49,508)
(329,212)
2,868,742
(488,637)
580,000
0
Total
343,050,361
341,007,212
(2,566,579)
(9,018,071)
(62,083)
(848,132)
2,543,091
(441)
580,000
1,418,343
(Continued)
4
Detail
Deferred tax on adjustments from equating
Reappraisal of investments
Deferred charges
Non-controlling interest
Acquired equity: Banking Gaap
Total amount paid
Goodwill: Banking Gaap
Transcom
76,638
(115,944)
0
0
39,843,137
82,881,006
43,037,869
Reformador
1,492,132
(21,597)
(161,370)
0
111,232,150
338,090,700
226,858,550
Banco BAC Panamá
1,394,103
149,688
0
7,064
187,365,346
505,139,760
317,774,414
Total
2,962,873
12,147
(161,370)
7,064
338,440,633
926,111,466
587,670,833
Corporación Financiera Centroamericana S.A. (FICENTRO) is incorporated under Panamanian law
and has its headquarters in Panama City. It was engaged primarily in managing loans granted to
companies operating outside the Republic of Panama.
Ficentro currently is dedicated solely to loan recovery and administering the disposal of assets received
for sale. The company’s management has expressed its intention to keep the firm functioning, but with no
additional operations. There are no plans to liquidate it in the near future.
Megalinea S.A. is involved in loan management and collection through pre-trial, trial and out-of-court
action.
The following is the value of the assets, liabilities and earnings of the Bank and its subordinates at June
30, 2014 and December 31, 2013, as included in the consolidation.
June 30
Entity
Banco de Bogotá S.A.
(Bank)
Almacenes Generales
de Depósito Almaviva
SA & Subordinates
Fiduciaria Bogotá S.A.
Corporación
Financiera
Colombiana S.A. &
Subordinates
Sociedad
Administradora
de
Pensiones y Cesantías
Porvenir
S.A
&
Subordinates
- Panamá &
Subordinate
Bogotá Finance
Corporation
Leasing Bogotá S.A. –
Panamá
Corporación
Financiera
Centroamericana S.A
Ficentro
Megalínea S.A.
Casa de Bolsa S.A.
$
Eliminations
Consolidated
%
Held
Profit
(Loss)
for the
Period
%
Held
870.152
49,0
734.528
55,6
0,7
10.073
0,6
8.045
0,6
207.884
0,9
38.034
2,1
28.815
2,2
11,1
4.121.592
17,9
270.352
15,2
179.916
13,6
578.162
0,6
1.203.068
5,2
203.325
11,5
135.168
10,2
1,4
1.494.900
1,6
138.916
0,6
13.291
0,7
12.911
1,0
159
0,0
0
0,0
159
0,0
1
0,0
1
0,0
34.572.319
30,0
29.327.481
31,8
5.244.838
22,8
369.606
20,8
220.949
16,7
5
0,0
5
0,0
0
0,0
0
0,0
0
0,0
9.616
30.043
115.185.942
(10.247.437)
104.938.505
0,0
0,0
7.258
2.776
92.213.824
2.427.152
94.640.976
0,0
0,0
2.358
27.267
22.972.118
(12.674.589)
10.297.529
0,0
0,1
69
(235)
1.774.668
(470.405)
1.304.263
0,0
0,0
49,0
(26)
11
1.320.318
(633.320)
686.998
0,0
0,0
%
Held
Liabilities
%
Held
62.305.013
54,1
50.438.102
54,7
11.866.911
51,7
207.478
0,2
48.353
0,1
159.125
255.784
0,2
47.900
0,1
14.390.479
12,5
10.268.887
1.781.230
1,5
1.633.816
Assets
$
%
Held
Equity
Direct
Operating
Profit
(Continued)
5
December 31
Entity
(Bank)
Almacenes Generales
de Depósito Almaviva
SA & Subordinates
Corporación
Financiera
Colombiana S.A. &
Subordinates
Sociedad
Administradora
de
Pensiones y Cesantías
Porvenir
S.A
&
Subordinates
- Panamá &
Subordinate
Bogotá Finance
Corporation
Leasing Bogotá S.A. –
Panamá
Corporación
Financiera
Centroamericana S.A
Ficentro
Megalínea S.A.
Casa de Bolsa S.A.
Eliminations
Consolidated
%
Held
Assets
$
$
%
Held
Liabilities
%
Held
Equity
Direct
Operating
Profit
%
Held
Profit
(Loss)
for the
Period
%
Held
635,969
49.5
57,327,276
51.8
45,773,175
51.8
11,554,101
51.7
747,957
44.9
209,253
0.2
54,225
0.1
155,028
0.7
13,222
0.8
6,026
0.5
234,572
0.2
50,450
0.1
184,122
0.8
31,308
1.9
24,477
1.9
14,061,412
12.7
10,033,974
11.3
4,027,438
18.0
393,613
23.6
250,114
19.5
1,645,366
1.5
516,070
0.6
1,129,296
5.1
142,551
8.6
114,700
8.9
2,004,534
1.8
1,881,520
2.1
123,014
0.6
4,225
0.3
3,964
0.3
162
0.0
0
0.0
162
0.0
1
0.0
1
0.0
35,213,284
31.8
30,085,047
34.0
5,128,237
23.0
333,100
20.0
249,821
19.4
6
0.0
6
0.0
0
0.0
0
0.0
0
0.0
7,316
48,998
110,752,179
(10,083,147)
100,669,032
0.0
0.0
4,932
21,537
88,420,936
2,350,730
90,771,666
0.0
0.0
2,384
27,461
22,331,243
(12,433,877)
9,897,366
0.0
0.1
(260)
174
1,665,891
(456,076)
1,209,815
0.0
0.0
39
20
1,285,131
(640,489)
644,642
0.0
0.0
(2) Principal Accounting Policies
(a) Basic Policy on Accounting and Consolidation
The accounting policies and preparation of the financial statements of the Bank and its national
subordinates are in keeping with the accounting principles generally accepted in Colombia and the
instructions imparted by the Colombian Superintendency of Finance.
Intercompany accounts and transactions are eliminated when consolidating the financial statements.
(b) Equating and Standardizing the Accounting Policies of National and Foreign Subsidiaries
As part of the process to consolidate the financial statements, the Bank coordinates with its national and
foreign subordinates to equate their financial statements to the Single Plan of Accounts for the Colombian
Financial System (PUC in Spanish), as defined by the Colombian Superintendency of Finance.
The Bank also coordinates efforts to adjust the accounting policies of its subordinates to the accounting
policies generally accepted by the financial sector in Colombia, quantifying the respective adjustments that
affect each subsidiary.
It is the responsibility of the parent company to ensure accounting policies and practices are applied
uniformly to similar transactions and events in comparable circumstances. The requirement to equate
(Continued)
6
does not apply when the controlling company has no transactions similar to those of the companies it
controls.
Standardizing the financial statements of the Bank’s foreign subordinates has the following impact on the
consolidated financial statements.
June 30
Assets
Earnings for
the Period
Liabilities
Equity
34,329,863
29,127,999
5,201,864
307,733
27,344
(93,378)
120,722
28,486
323,972
0
323,972
886
0
(886)
0
0
Leasing Bogotá Panamá
US Gaap figures
Reversal purchase price allocation – Us Gaap
Derivative operations, net
Reclassification of non-controlling interest
Equating adjustments to Colombian financial principles Banking Gaap
Figures in the consolidated statement
$
$
(108,861)
(31,998)
(76,863)
(115,270)
34,572,318
29,327,481
5,244,837
220,949
December 31
Assets
US Gaap figures
Derivative operations, net
Reversal purchase price allocation – Us Gaap
Reclassification of non-controlling interest
Figures in the consolidated statements
$
$
Earnings for
the Period
Liabilities
Equity
35,126,134
30,025,211
5,100,923
326,937
(27,399)
(117,915)
90,516
(40,563)
200,247
0
200,247
4,280
0
(4,280)
0
0
(85,699)
35,213,283
(26,777)
30,085,046
(58,922)
5,128,237
(36,553)
249,821
June 30
Assets
Banco de Bogotá Panamá
IFRS figures
Liabilities
Equity
Earnings for
the Period
$
1,631,611
2,206
(330)
2,536
(667)
$
1,633,817
1,494,900
138,917
12,910
1,495,230
136,381
13,577
December 31
IFRS figures
Equity
Earnings for
the Period
Assets
Liabilities
$
2,002,057
1,882,192
119,865
3,159
$
2,477
2,004,534
(672)
1,881,520
3,149
123,014
805
3,964
(Continued)
7
c) Cash Flow Statement and Cash Equivalents
The cash flow statement is prepared using the indirect method. For that purpose and in addition to cash,
the Bank regards as cash equivalents asset positions that mature in less than 90 days and are readily
convertible to cash with insignificant risk of changes in value.
(d) Conversion of the Financial Statements of Foreign Subordinates
The assets, liabilities and equity in foreign currency included in the consolidation were converted into
Colombian pesos at the representative market rate of exchange (TRM in Spanish), as calculated on the
last business day of the month and certified by the Colombian Superintendency of Finance. The
respective rates at June 30, 2014 and December 31, 2013 were $1,881.19 (in pesos) and $1,926.83 (in
pesos).
The nominal accounts were converted into Colombian pesos at $1,961.82 (in pesos) y $1,910.56 (in
pesos) per dollar. These are the average representative market exchange rates posted between January
1 and June 30, 2014, in that order. The average rate was calculated excluding Saturdays, Sundays and
holidays, then divided by the number of business days in the respective six-month period.
(e) Money Market Assets and Liability Operations and Similar Positions
This account groups interbank operations, repos, simultaneous operations and temporary transfers of
securities, as explained below.
Ordinary Interbank Funds
These are funds the Bank and its subordinates place with or receive directly from another financial
institution, with no agreement to transfer investments or loans. Also included in this category are overnight
operations conducted with financial institutions outside the country, using own funds.
The interest income generated by these operations is entered on the statement of operations.
Repurchase Operations (Repos)
Asset Position
Repos are transactions involving the placement of secured funds with other financial institutions. The
Bank and its subordinates purchase investments in debt securities under a commitment to resell them to
the counterparty at a set price, plus interest at a fixed rate, on a specific date not to exceed one year. The
amount entered in this account is the value of the disbursed funds, and the purchased investments are
recorded in contingent accounts. The accrued interest is entered under accounts receivable.
Liability Position
These are transactions involving the receipt of secured funds. The Bank sells investments in debt
securities with a commitment to repurchase them at a certain price, plus interest, on a specified date not
to exceed one year. The values received are entered as liabilities and the sold investment is reclassified
(Continued)
8
within the investment portfolio in the account entitled "Investments sold under repurchase agreements".
Accrued interest is recorded under accounts payable.
Simultaneous Operations
The asset and liability positions in simultaneous operations are similar to those in repo operations. In
transactions of this type, no restrictions may be placed on the mobility of the securities in question and the
initial amount may not be calculated with a discount on the market price of the securities involved.
The securities received in money market operations (repos and simultaneous) are valued daily at fair
market prices, based on the prices published by the trading systems, and the guarantees received or
pledged are valued the same way in memorandum accounts.
Money market operations are entered in contingent accounts to recognize and disclose receipt of the
respective value.
The yields agreed on in money market operations are calculated exponentially during the term of the
transaction. Consequently, these returns represent income (for asset operations) or an outlay (for liability
operations) and are recognized in the statement of operations according to the principal of accrual
accounting.
Securities delivered in repo and simultaneous transactions are reclassified to a transfer rights account,
within the same investment account, until the operation is complete. They also are recorded in contingent
memorandum accounts.
The collateral received in repo and simultaneous transactions is recorded in contingent memorandum
accounts and is only recorded in balance sheet accounts when the so-called short position is sold.
Securities Lending
Securities lending or temporary transfer operations are those in which one party (the "originator") transfers
possession of the securities (involved in the transaction) to the other party (the "recipient"), under an
agreement to re-transfer them on the same date or on a later date. Concurrently, the recipient will transfer
to the originator possession of other securities or a sum of money equal to or greater than the value of the
securities in the transaction.
When the transaction is reversed, both the originator and the recipient must restore possession of
securities of the same kind and characteristics as those received in the transaction, or the amount of
money received, as applicable.
(f)
Investment Securities
This account includes investments acquired by the Bank and its subordinates to maintain a secondary
liquidity reserve, to gain direct or indirect control of any company in the financial or service sector, to
comply with legal or regulatory requirements, or solely to eliminate or reduce the market risk to which
assets, liabilities and other items on the financial statements are exposed.
(Continued)
9
All investments by the Banks and its subordinates are reappraised using information provided by
INFOVALMER S.A., which is a pricing service. It supplies the information required to reappraise
investments in each segment of the market (prices, rates, curves, margins, etc.) and issues and provides
methods to reappraise the investments needed to comply with the corporate business, doing so in
accordance with the parameters outlined in Chapter I of the Basic Accounting and Financial Circular
issued by the Colombian Superintendency of Finance.
The different types of investments are classified, reappraised and entered on the books as indicated in the
following table.
Trading
Characteristics
Valuation
Entered on the Books
Investments in the form of debt
securities are valued based on the price
determined by the valuation pricing
service.
The difference between the actual market
value and the immediately preceding
value is entered as a gain or loss in the
value of the investment, and the balancing
item affects earnings for the period. This
procedure is performed daily.
Short term
Securities acquired to turn a profit
on short-term price fluctuations
On days when the fair price cannot be
found or estimated, these securities are
valued exponentially, based on the
internal rate of return.
This procedure is performed daily.
Investments are valued at market prices
as of the same day they are acquired.
Therefore,
changes
or
differences
between the purchase price and market
value of investments also are recorded as
of the purchase date.
Held to Maturity
Characteristics
Valuation
Term to maturity
These are securities the Bank and
its subordinates seriously intend to
hold to maturity or to the
redemption date and have the
legal, contractual, financial and
operational capacity to do so.
These investments may not be
used in liquidity operations, nor for
repos, simultaneous operations or
securities lending, unless they are
forced or mandatory investments
subscribed in the primary market
and the other party in the operation
is the Central Bank of Colombia
Exponentially, according to the internal
rate of return calculated at the time of
purchase, based on a year with 365
days
When there is objective evidence of a
loss due to deterioration in the value of
these assets, the book value will be
reduced directly and the loss will be
recognized in the earnings for the
period.
The present value is entered as an
increase in the value of the investment,
and its balancing item is recorded in the
earnings for the period.
Required yield pending collection is
recorded as an increase in the value of
the investment. Consequently, collection
of any such yield should be entered as a
decline in the value of the investment.
(Continued)
10
Held to Maturity
Characteristics
Valuation
(Banco de la República), the
General Office of Public Credit and
the National Treasury, or an entity
supervised by the Colombian
Superintendency of Finance.
They also may be delivered to a
central counterparty clearing house
as collateral to back compliance
with operations it has accepted for
clearing and settlement.
Available for Sale – Debt Securities
Characteristics
valuation
Investments in debt securities are
valued on the basis of the price
service.
Changes in these securities are entered
on the books as follows.
One year up to November 22,
2013 and six (6) months as of
that date.
These are securities the Bank and
its subordinates seriously intend to
hold for at least six (6) months
from the date they were classified
in this category, and have the
legal, contractual, financial and
operational capacity to do so.
On the first business day following
completion of that six-month
period, these securities may be
reclassified as “held for trading” or
“held to maturity”. If not, they will
remain classified as “available for
sale”.
Securities
classified
as
investments “available for sale”
may be pledged as collateral
guarantees
to
a
central
counterparty clearing house to
back compliance with operations it
has accepted for clearing and
settlement.
On days when the fair price cannot be
found or cannot be estimated, these
securities are valued exponentially,
based on the internal rate of return.
This is a daily procedure.
- The difference between the present
value on reappraisal day (calculated
exponentially from the internal rate of
return assessed at the time of purchase,
based on a year with 365 days) and the
immediately preceding value is recorded
as an increase or decrease in the value of
the investment, and is credited or charged
to the nominal accounts.
- The difference between market value
and the present value calculated
according to the preceding paragraph is
entered in the equity accounts as an
unrealized accumulated gain or loss.
These investments also may be
used for liquidity operations,
(Continued)
11
Available for Sale – Debt Securities
Characteristics
valuation
repos, simultaneous operations or
securities lending.
Available for Sale – Equity Securities
Characteristics
Valuation
Investments whereby the Bank
becomes joint owner of the issuer.
 Equity securities listed in the national
registry
of
securities
(RNVE)
(Spanish acronym):
No term
This category includes securities
with high, medium, low or minimal
turnover or unlisted securities and
those held by the Bank as
controlling interest in its capacity
as a parent company or head
office, in or outside the country.
For the purpose of their sale,
these investments need not be
held for six (6) months.
These are valued according to the
price determined by the valuation
pricing services authorized by the
Colombian
Superintendency
of
Finance.
Mutual funds and securitizations are
valued according to the unit of value
calculated by the management
company on the day prior to
reappraisal.
 Equity securities quoted only on
foreign stock exchanges:
These are valued based on the price
services authorized by the Colombian
Superintendency of Finance. If there
is no reappraisal method, the most
recent closing price in the last five (5)
trading days shall be used, including
the reappraisal day or the simple
average of the closing prices reported
in the last 30 days.
If they are traded on more than one
foreign stock exchange, the value on
the home market will be used.
The price of the security is converted
into domestic currency.
 Equity securities listed in foreign
securities
exchange
systems
authorized in Colombia:
Are valued at the price supplied by
Low or minimum turnover or unlisted
- The difference between the market or
updated value of the investment and
the book value is recorded as follows:
If greater, it is used first to reduce the
allowance
or
for
a
downward
adjustment in value until exhausted,
and the excess is recorded as an equity
reappraisal surplus.
If less, the difference is used to reduce
the equity reappraisal surplus until
exhausted, and the remainder is
recorded as a loss in market value.
- When dividends or profits are distributed
in
kind,
including
those
from
capitalization of the equity reappraisal
account, the portion entered on the
books as an equity surplus is treated
as income, chargeable to the
investment, and that surplus is
reversed.
- When dividends or profits are distributed
in cash, the amount entered as an
equity reappraisal surplus is recorded
under income, thereby reversing that
surplus. The amount of dividends that
exceeds it is recorded as a decline in
the value of the investment.
High and Medium Turnover
The updated market value of securities
with high and medium turnover or those
(Continued)
12
Available for Sale – Equity Securities
Characteristics
Valuation
the
valuation
pricing
services
authorized
by
the
Colombian
 Equity securities not listed on a stock
exchange:
quoted on internationally recognized
foreign stock exchanges is recorded in the
equity accounts as an unrealized
accumulated gain or loss and credited or
charged to the investment, as the case
may be.
Are valued at the price determined by
the
valuation
pricing
service
designated as official for the
respective segment.
When the pricing service has no
method for valuing these investments,
institutions shall increase or decrease
the acquisition cost in proportion to
the percentage of ownership interest
the investor has in subsequent
variations in the issuer’s equity,
calculated on the basis of certified
financial statements at December 31
and June 30 of each year, or the most
recent ones, if known.
Dividends or profits distributed in cash or
kind, including those from capitalization of
the equity reappraisal account, are
entered as income up to the amount
pertaining to the investor with respect to
profits or reappraisal of the issuer’s
equity, as recorded by the latter from the
date the investment was acquired,
chargeable to accounts receivable.
Investment Reclassification
For an investment to remain in any of the classification categories, it must comply with the characteristics
or conditions particular to the type of investments in that category.
The Colombian Superintendency of Finance may order the institution to reclassify a security at any time, if
it does not comply with the characteristics particular to the category in which it is classified or when
reclassification is required for better disclosure of the financial situation.
Investments may be reclassified pursuant to the following provisions:
Reclassification from investments held to maturity to investments held for trading is possible in any of the
circumstances listed below:

Significant deterioration in the conditions of the issuer, its parent company, its subordinates or its
affiliates

Changes in regulations that make it impossible to maintain the investment
(Continued)
13

Mergers that lead to reclassification or sale of the investment to maintain the previous interest-rate
risk position or to adjust to the credit risk policy established beforehand by the resulting entity.

Other unforeseen events, subject to prior authorization from the Colombian Superintendency of
Finance.
Reclassification from investments available for sale to investments held for trading or held to maturity is
possible in any of the following circumstances:
 Completion of the six-month period applying to this classification.
 When the investor loses its capacity as a parent or controlling company, provided this circumstance
involves a decision to dispose of the investment or the primary intent is to profit from short-term price
fluctuations, as of that date.
 When the conditions of the issuer, its parent company, its subordinates or its affiliates have deteriorated
significantly.
 When changes in regulations make it impossible to maintain the investment.
 When mergers lead to reclassification or sale of the investment to maintain the previous interest-rate
risk position or to adjust to the credit risk policy established beforehand by the resulting entity.
 When the investment goes from low or minimum turnover or unquoted to high or medium turnover.
When investments held to maturity or available for sale are reclassified as trading investments, the rules
applicable to the latter with respect to reappraisal and accounting are to be observed. Consequently,
unrealized gains or losses are treated as income or expenses on the date of reclassification.
Securities reclassified as trading investments may not be reclassified again.
Investment Repurchase Rights
This account records investments that represent collateral guarantees for investment repurchase
agreements.
All economic rights and benefits associated with the value of these investments are preserved and all risks
inherent in that value are retained, even though legal ownership is transferred when the operation is
conducted in the money market.
These securities continue to be valued daily and entered on the balance sheet and the statement of
operations pursuant to the method and procedure applicable to investments classified as “trading,” “held
to maturity” and “available for sale,” depending on the category in which they were listed before the
repurchase agreement was acquired.
(Continued)
14
Investments Pledged as Collateral Guarantees
These are investments in debt securities pledged as collateral to back compliance with operations
accepted for clearing and settlement by the Central Counterparty Clearing House.
They are valued daily and entered on the balance sheet and the statement of operations pursuant to the
method and procedure applicable to the category in which they were listed before being pledged as
collateral.
Allowances or Losses, by Credit Risk Rating
The price of “trading” investments for which there is no fair price on the day of reappraisal and the price of
investments classified as “held to maturity” must be adjusted on each reappraisal date, based on the
credit risk rating and pursuant to the following criteria:
Unrated Issues or Allowances:
Securities with no external rating or those issued by unrated entities are classified as follows.
Category/Risk
Characteristics
Allowances
A-Normal
They comply with the terms agreed on in the
instrument, and the issuer has sufficient capacity to pay
the principal and interest.
None required
B- Acceptable
C- Appreciable
D- Significant
E-Uncollectable
This classification pertains to issues with uncertainty
factors that could affect the capacity to continue to
service the debt adequately. In addition, the financial
statements and other available data show weaknesses
that might affect the issuer’s financial situation.
These are issues with high or medium probability of
default on prompt payment of principal and interest.
Moreover, the financial statements and other available
data show weaknesses in the issuer’s financial situation
that could jeopardize recovery of the investment.
These are issues that default on the terms agreed in the
instrument. In addition, the respective financial
statements and other available data show serious
weaknesses in the issuer’s financial situation, so much
so that there is very little likelihood of recovering the
investment.
Issuers with financial statements and other available
data suggesting the investment is uncollectible. Also, if
there are no financial statements at December 31 and
June 30 of each year.
The net value may not exceed eighty percent
(80%) of the acquisition cost, net face value
of amortization up to the reappraisal date.
The net value may not exceed sixty percent
(60%) of the acquisition cost.
In the case of debt securities, their book
value may not exceed eighty percent (80%)
of the net face value of amortization prior to
the reappraisal date.
The net value may not exceed forty percent
(40%) of the acquisition cost.
The value of these investments is provisioned
in its entirety.
(Continued)
15
Externally-rated Issues or Issuers
Debt securities with one or more ratings and those ranked by external credit rating agencies recognized
by the Colombian Superintendency of Finance may not be recorded for an amount that exceeds the
following percentages of the net face value of amortization prior to the reappraisal date.
Long-term Rating
Maximum Value %
Short-term Rating
Maximum
Value %
BB+, BB, BBB+, B, BCCC
DD,EE
Ninety (90)
Seventy (70)
Fifty (50)
Zero (0)
3
4
5 and 6
5 and 6
Ninety (90)
Fifty (50)
Zero (0)
Zero (0)
The respective issuer’s rating is used to estimate the allowances for time deposits.
The allowance for investments classified as “held to maturity” and for which a fair value can be
determined, as stipulated in the case of “trading” securities or those “available for sale,” is the difference
between the book value and said price.
Domestic or foreign government debt securities issued or guaranteed by the nation, those issued by the
Central Bank of Colombia and those issued or backed by the Guarantee Fund for Financial Institutions
(FOGAFIN) are not subject to these provisions.
Method Used to Calculate the Proportional Value of Equity
In cases involving purchases made prior to December 31, 1976, the proportional equity value of the sum
of those acquisitions is calculated with the equity recorded by the institution on that date, applying the
percentage of equity investment accumulated at December 31, 1976 to each component of equity.
The step-by-step method is used for each subsequent purchase representing an increase in that interest
or equity investment, regardless of the percentage.
The sum of the value of each equity component determined according to the percentage of interest or
equity investment acquired with each purchase is matched against the cost of each purchase to identify a
difference of greater or lesser value between the cost versus the acquired equity.
If the cost is greater than the acquired equity, it is treated as a surplus investment cost, or an investment
cost shortfall, if it is less.
The amortization period for these surpluses or shortfalls is five (5) years from the moment control is
acquired. Those obtained in subsequent acquisitions are amortized during the period remaining to
complete the five (5) years. Those obtained after the five (5) years must be amortized in full at the time
they are determined.
Amortization is entered against the earnings for the accounting period or previous periods, as appropriate.
(Continued)
16
g)
Loans and Financial Leases
These accounts record loans made according to the different types of authorized lending. The funds used
to extend loans come from the Bank’s own resources, the public (in the form of deposits), and other
external and internal sources of funding.
Loans are entered on the books at their disbursement value, except in the case of factoring operations,
which are recorded at cost.
The loan portfolio is classified according to four (4) types of credit:
Commercial
These are loans made to persons or legal entities to develop organized business activities. They are
different from microcredit.
Consumer
These loans, regardless of the amount, are made to persons to finance the acquisition of consumer goods
or the payment of non-commercial or non-business services. They are different from microcredit.
Mortgage
These loans, regardless of the amount, are granted to persons for the purchase of new or used housing,
or the construction of individual homes. As provided for under Law 546/ 1999, they are denominated in
constant-value units (UVR-Spanish acronym) or in domestic currency, and are backed by a first mortgage
on the property being financed.
The payback period ranges from a minimum of five (5) years to a maximum of thirty (30). These loans
may be prepaid all or in part at any time, without penalty. In the event of partial prepayments, the borrower
is entitled to decide if the amount paid will go to reduce the monthly installment or the mortgage payback
period. Moreover, these loans have a remunerative rate of interest, which is applied to the outstanding
balance denominated in pesos or UVR. Interest is charged in arrears and may not be capitalized. The
amount of the mortgage may be for as much as seventy-percent (70%) of the value of the property, as
determined by the purchase price or by a professional appraisal done within six (6) months before the loan
is granted. Loans to finance low-income housing may be for as much as eighty percent (80%) of the value
of the property. In all cases, the property being financed must be insured against fire and earthquake.
Microcredit
These are the loans referred to in Article 39, Law 590/2000, as amended, substituted or expanded, and
those made to micro-businesses where the primary source of repayment is the income derived from their
commercial activity.
The borrower’s debit balance may not exceed one hundred twenty (120) times the minimum monthly wage
(SMMLV: Spanish acronym) in effect at the time the loan is approved. The “debit balance” is understood
(Continued)
17
as the sum of what the micro-business still owes on loans from the financial system and other sectors, as
listed in the records of the database operators consulted by the respective lender, excluding home
mortgages and adding the value of the new loan.
A micro-business is understood as any unit of economic pursuit established by a private person or legal
entity to engage in rural or urban business, farming, industrial, commercial or service activities, with a staff
of no more than ten (10) workers and total assets that do not exceed five hundred (500) times the
minimum monthly wage (SMMLV) in effect at the time.
Credit Risk Assessment Criteria
The Bank and its subordinates continuously assess the risk inherent in their loan assets. This is done
when the loan is granted and throughout its life, even in cases of restructuring. The Credit Risk
Management System (SARC – Spanish acronym) was designed and adopted for that purpose. It is
comprised of credit-risk management policies and processes, reference models to estimate or quantify
anticipated losses, a system of allowances to cover credit risk, and processes for internal control.
Loans are granted on the basis of what is known about the potential borrower and the borrower’s
creditworthiness. The terms of the loan agreement to be entered into are taken into account as well.
Among others, these include the financial terms of the loan, the collateral, sources of payment and the
macroeconomic conditions to which the borrower might be exposed.
The loan approval process involves a series of variables established for each of the portfolios. These
make it possible to identify borrowers who fit the organization’s risk profile. The segmentation and
discrimination processes for loan portfolios and their potential borrowers serve as the basis for their rating.
The methods and procedures included in the loan approval process make it possible to monitor and
control credit exposure for the various individual portfolios and the aggregate portfolio alike, thereby
avoiding an excessive concentration of lending per borrower, economic sector, economic group, risk
factor, etc.
The Bank and its subordinates constantly monitor and rank lending operations pursuant to the loan
approval process, which is founded on several criteria. These include information on the historical pattern
of the portfolios and individual loans; the particular characteristics of borrowers, their loans and the
collateral backing them; the borrower’s credit history or reputation with other institutions; financial
information that provides an understanding of the borrower’s financial situation; and the macroeconomic
and sector variables that might affect the normal development of lending operations.
When assessing regional government agencies, the Bank and its subordinates verify compliance with the
provisions contained in laws 358/1997, 550/1999 and 617 / 2000.
Loan Assessment and Re-rating
The Bank and its subordinates evaluate the risk to their loan portfolio, making changes in the respective
ratings when justified in light of new analysis or information.
(Continued)
18
The Banks and its subordinates fulfill this obligation by considering the borrower’s credit history with other
lenders, particularly if the information provided by credit reporting agencies or other sources shows the
borrower has restructured loans at the time of the assessment.
In any case, the Bank and its subordinates assess and reclassify the loan portfolio i) when loans fall into
arrears after being restructured, in which case they must be reclassified immediately, and ii) during May
and November, at the very least, recording the results of the assessment and reclassifying as needed at
the close of following month.
Credit Risk Rating
The Bank and its subordinates classify and rate commercial and consumer loans in the respective risk
categories, taking into account the following objective conditions, at the very least.
Commercial and consumer loans are classified and rated in the respective risk categories, pursuant to the
rules outlined in Chapter II of Basic Accounting and Financial Circular 100/ 1995, as detailed in
Attachment 3 concerning application of the Commercial Loan Reference Model (MRC in Spanish) and
Attachment 5 containing instructions on the Consumer Loan Reference Model (MRCO in Spanish). Credit
risk assessment is based on a variety of criteria; namely, loan arrears aging, information related to the
historical performance of portfolios and loans, the particular characteristics of the borrowers, their credit
history with other lenders, financial information, and sector and macroeconomic variables, as indicated
below.
Category
New
Existing Commercial Loans
Existing Consumer Loans
“AA”
New loans that are rated “AA” Loans with a rating equivalent to “AA” Loans with a rating equivalent to
when approved.
based on the legally approved MRC “AA” based on the legally approved
method.
MRCO method.
“A”
New loans that are rated “A” Loans with a rating equivalent to ”A” Loans with a rating equivalent to
when approved should be based on the legally approved MRC ”A” based on the legally approved
assigned to this category.
method.
MRCO method.
“BB”
New loans that are rated “BB” Loans with a rating equivalent to ”BB” Loans with a rating equivalent to
when approved should be based on the legally approved MRC ”BB” based on the legally approved
method
MRCO method.
“B”
New loans that are rated “B” Loans with a rating equivalent to ”B” Loans with a rating equivalent to
when approved should be based on the legally approved MRC ”B” based on the legally approved
method
MRCO method.
“CC”
New loans that are rated “CC” Loans with a rating equivalent to ”CC” Loans with a rating equivalent to
when approved should be based on the legally approved MRC ”CC” based on the legally approved
method.
MRCO method. .
“Default”
Existing loans 150 days past due, or
more.
Consumer loans more than 90
days past due.
(Continued)
19
The following table shows the equivalent risk ratings for commercial and consumer loans used in the
borrowing reports and for entries in the financial statements of the Bank and its subordinates.
Group
Category
A
Reporting Categories
Commercial
AA
A
B
C
Consumer
AA
“A” - currently 0-30 days past due
“A” - currently over 30 days past
due
BB
BB
B
B
CC
CC
C
C
D
D
D
E
E
E
The following equivalences are used when the Bank and its subordinates classify their customers as being
in default, based on application of the reference models adopted by Colombian Superintendency of
Finance.
Group E = Clients in default with an assigned LGD equal to one hundred percent (100%).
Group D = All other clients rated as being “in default”.
For the purpose of equivalence in consumer loans, the “current arrears” shown in the foregoing table are
understood at the maximum posted by the borrower for aligned products at the evaluation date.
The Bank and its subordinates must classify borrowers in higher risk categories when they are aware of
additional elements of risk to support this change.
Mortgage loans and microcredit are placed in the following categories, taking “loan arrears aging” into
account:
Category
Microcredit
Mortgage Loans
“A” Normal Risk
Existing loans up to one (1) month past
due
With installments current or up to two (2) months
past due
“B” Acceptable
Risk
Loans over (1) and up to two (2) months
past due
Over two (2) and up to five (5) months past due
“C” Appreciable
Risk
Loans over two (2) and up to three (3) Over five (5) and up to 12 months past due
months past due
(Continued)
20
Category
Microcredit
Mortgage Loans
“D” Significant
Risk
Loans over three (3) and up to four (4)
months past due
Over 12 and up to 18 months past due
“E” Risk of Being
Uncollectible
Loans over four (4) months
past due
Over 18 months past due
Restructuring Processes
Restructuring a loan is understood as any exceptional mechanism implemented through legal steps taken
to enable borrowers to discharge their obligations appropriately in the face of real or potential constraints
to their ability to pay by amending the terms originally agreed on. Agreements reached under laws 550/
1999, 617/ 2000 and 1116/ 2006, or norms that add to or supplement them, also are regarded as
restructured, as are special restructurings and novations.
Tax Reform Act 617/ 2000
In restructuring derived from the tax and financial reform programs subscribed under the terms of Act 617/
2000, sovereign guarantees were supplied for loans contracted by regional government agencies with
financial institutions supervised by the Colombian Superintendency of Finance, provided the requirements
set forth in that legislation were met and the fiscal adjustment agreements were entered into before June
30, 2001. The respective guarantee could be as much as forty percent (40.0%) for loans outstanding at
December 31, 1999 and up to one hundred percent (100.0%) in the case of new loans used for tax
adjustment.
These restructurings reversed the allowances constituted for the sovereign-guaranteed portion of the
restructured debt. The restructured portion not guaranteed by the government kept the rating it had at
June 30, 2001.
If the restructuring agreement is not fulfilled, the borrower is classified in the category occupied prior to
restructuring or in a higher risk category.
To improve their rating after respective restructuring, borrowers must comply fully with all terms and
conditions outlined in the restructuring agreement.
If a regional government agency defaults on the agreement, the portion of the outstanding debt not
backed by a sovereign guarantee on the date of default is reclassified in risk category ”E”.
Restructuring Agreements
For loans restructured before Law 550/1999 took effect, the Bank and its subordinates suspended interest
accrual on the outstanding balance at the onset of restructuring negotiations and maintained the rating the
loans had at that point. However, a client in risk category “A” was reclassified at least to category “B” and
an allowance equal to one hundred percent (100.0%) of accounts receivable was made.
(Continued)
21
When a client is admitted to the restructuring process under the terms of Law 1116/ 2006, the Bank and
its subordinates suspend interest accrual and classify the client in a risk category consistent with the
situation at the time. If that situation subsequently worsens or the proposed agreement is perceived as not
meeting the expectations of the Bank and its subordinates, the rating is reviewed and the debt is
reclassified in the pertinent risk category. If no agreement is reached or if the courts order a legal
settlement, the client is classified as being “in default.
Special Criteria for Classifying Restructured Loans
Restructured loans may keep the rating they had immediately prior to restructuring, provided the
restructuring agreement leads to an improvement in the borrower’s ability to pay and/or reduces the
likelihood of default. If restructuring contemplates grace periods for the repayment of principal, the rating is
maintained only when those periods do not extend beyond one year, as of the date the agreement is
signed.
It is possible for loan ratings to improve or the “default” condition to be changed after loans have been
restructured, but only if the borrower demonstrates a pattern of repaying the principal regularly and
effectively, in accordance with normal credit behavior, and provided the borrower’s ability to pay is
maintained or improves.
h)
Write-offs
A fully provisioned loan (100%) may be written off if the management of the Bank and its subordinates
believes it is uncollectable or offers only a remote or uncertain possibility of recovery, provided the
Bank’s legal counsel and agencies specializing in debt collection through the courts believe all possible
means of collection have been exhausted.
A write-off does not relieve officers of whatever their responsibility might be for having approved and
managed the loan, nor does it release them from the obligation to continue efforts to collect it.
The Board of Directors is the only body with the authority to approve writing off operations considered to
be losses.
i)
Allowance for the Loan Portfolio and Accounts Receivable
The Bank and its subordinates have a system of allowances to cover credit risk. These are calculated on
the outstanding balance, using the reference models for the commercial loan portfolio (MRC in Spanish)
and the consumer loan portfolio (MRCO in Spanish). Mortgages and microcredit are provisioned based on
the client’s record of arrears.
Commercial and Consumer Loans
The Bank and its subordinates adopted the commercial and consumer reference models established by
the Colombian Superintendency of Finance to estimate allowances.
The allowances based on the reference models are calculated as the sum of the "pro-cyclical individual
component (PIC)" and the "counter-cyclical individual component (CIC)". These methods are defined in
(Continued)
22
terms of the accumulative phase applied by the Bank and its subordinates, which includes indicators of
deterioration, efficiency and loan portfolio growth.
The PIC is the expected loss calculated for the entire portfolio with matrix A; that is, the result obtained by
multiplying the debtor’s exposure, by the probability of default (hereinafter PD) for matrix A and the loss
given default (hereafter LGD) associated with the debtor’s collateral, as provided for in the respective
reference model.
The CIC is the maximum value between the counter-cyclical individual component in the previous period
(t-1) affected by the exposure, and the difference between the expected loss calculated with matrix B and
the expected loss calculated with matrix A at the time the allowance (t) was estimated.
The processes used to segment and discriminate the loan portfolio and potential borrowers constitute the
basis for estimating expected losses using the Commercial Loan Reference Model (MRC), which is
founded on segments differentiated by the level of the borrower’s assets, pursuant to the following criteria:
Commercial Loan Classification by Asset Level
Company Size
Asset Level
Large companies
More than 15,000 SMMLV
Medium-sized companies
Between 5,000 and 15,000 SMMLV
Small companies
Less than 5,000 SMMLV
Persons with commercial loans are grouped into the category of the model labeled “Persons”.
The Consumer Reference Model (MRCO, in Spanish) is based on segments differentiated by products
and the lending institutions that grant them. The idea is to preserve the peculiarities of the market niches
and the products being made available.
The following are the segments defined for MRCO by the Bank:

General - Automobiles: Loans to purchase automobiles.

General - Others: Loans to purchase consumer goods other than automobiles. Credit cards are not
included in this segment.

Credit Card: Revolving credit to purchase consumer goods with a credit card.
The commercial and consumer reference models make it possible to identify the components of expected
losses according to the following parameters.
(Continued)
23
a. Probability of Default (PD)
This is the probability that a borrower will default within a 12-month period.
Probability of default is defined pursuant to the following formats established by the Colombian
Commercial Loans
Rating
AA
A
BB
B
CC
Default
Large Company
Matrix A
1.53%
2.24%
9.55%
12.24%
19.77%
100.0%
Medium-sized Company
Matrix B
2.19%
3.54%
14.13%
15.22%
23.35%
100.0%
Matrix A
1.51%
2.40%
11.65%
14.64%
23.09%
100.0%
Matrix B
4.19%
6.32%
18.49%
21.45%
26.70%
100.0%
Small Company
Matrix A
4.18%
5.30%
18.56%
22.73%
32.50%
100.0%
Matrix B
7.52%
8.64%
20.26%
24.15%
33.57%
100.0%
Persons
Matrix A
5.27%
6.39%
18.72%
22.00%
32.21%
100.0%
Matrix B
8.22%
9.41%
22.36%
25.81%
37.01%
100.0%
Consumer Loans
Rating
AA
A
BB
B
CC
Default
General Automobiles
0.97%
3.12%
7.48%
15.76%
31.01%
100.0%
Matrix A
General Others
2.10%
3.88%
12.68%
14.16%
22.57%
100.0%
Credit Card
1.58%
5.35%
9.53%
14.17%
17.06%
100.0%
General Automobiles
2.75%
4.91%
16.53%
24.80%
44.84%
100.00%
Matrix B
General Others
3.88%
5.67%
21.72%
23.20%
36.40%
100.00%
Credit Card
3.36%
7.13%
18.57%
23.21%
30.89%
100.00%
The probability of migrating between the current rating and “default” status within the next 12 months is
calculated for each borrower-segment of the commercial and consumer loan portfolios, based on the
general credit-risk behavior cycle.
b. Loss Given Default (LGD)
Loss given default is defined as the economic loss the Bank would incur if any of the default situations
were to materialize. The LGD for borrowers in the “default category” would increase gradually, concordant
with the days that transpire after their classification in that category.
The loan collateral backing the operations must be taken into account to calculate the losses expected in
the event of default and, therefore, to determine the extent of allowances.
The Bank defines admissible collateral as a guarantee that has been duly developed, has a value
established on the basis of technical and objective criteria, offers legally effective support for payment of
the secured loan, and is reasonably easy to execute.
(Continued)
24
To evaluate the backing offered and the possibility of collecting on each guarantee, the Bank take into
account the nature, value, coverage and liquidity of a guarantee, as well as the potential cost of its
collection and the legal requirements necessary to make it enforceable.
The following is the LGD by type of collateral guarantee.
Commercial Loans
LGD
Days after
Default
New LGD
Days after
Default
New LGD
Inadmissible guarantee
55%
270
70%
540
100%
Subordinated loans
75%
270
90%
540
100%
0 – 12%
-
-
-
-
Commercial and residential real estate
40%
540
70%
1080
100%
Assets furnished in real estate leasing
35%
540
70%
1080
100%
Assets furnished in non-real estate leasing
45%
360
80%
720
100%
Other collateral
50%
360
80%
720
100%
Collection rights
45%
360
80%
720
100%
Unsecured
55%
210
80%
420
100%
Type of Guarantee
Admissible financial collateral
Consumer Loans
Type of Guarantee
Inadmissible guarantee
Admissible financial collateral
Commercial and residential real estate
Assets furnished in real estate leasing
Assets furnished in leasing other than real estate
Other collateral
Collection rights
Unsecured
LGD
60%
0-12%
40%
35%
45%
50%
45%
75%
Days after
Default
210
360
360
270
270
360
30
New LGD
70%
70%
70%
70%
70%
80%
85%
Days after
Default
420
720
720
540
540
720
90
New LGD
100%
100%
100%
100%
100%
100%
100%
To equate the different types of collateral in loan agreements with the segments listed earlier, the Bank
classify them by groups, as follows:
1. Inadmissible guarantees: These include, among others, cosigners, endorsers and guarantees through
payroll deductions.
2. Admissible financial collateral includes the following:
 Cash collateral deposits: This collateral guarantee has zero percent (0%) LGD.
 Stand-by letters deemed as admissible guarantees: This collateral guarantee has zero percent (0%)
LGD.
 Loan insurance: This collateral guarantee has twelve percent (12%) LGD.
 Sovereign guarantees (Law 617/2000): This collateral guarantee has zero percent (0%) LGD.
(Continued)
25
 Collateral issued by guarantee funds: This collateral guarantee has twelve percent (12%) LGD.
 Pledge on securities issued by financial institutions: This collateral guarantee has twelve percent (12%)
LGD.
3. Collection rights represented by:
 Escrow accounts
 Revenue pledged by regional and decentralized agencies of all types
4. Real estate and residential property. The following classify as collateral:
 Mortgage trusts
 Collateral in the form of real estate
5. Property rented out under real estate leasing agreements. Properties leased out under the following
contracts are classified in this category:
 Real estate leasing
 Residential leasing
6. Assets rented out under non-real estate leasing agreements. Assets leased out under the following
contracts are classified in this category:
 Machinery and equipment leasing
 Vehicle leasing
 Leasing of furniture and fixtures
 Leasing of ships, trains and airplanes
 Leasing of computer equipment
 Leasing of livestock
 Leasing of software
7. Other collateral. The following collateral is classified in this category:
 Pledges on processed inventories
 Pledges on input – commodities
 Pledges on equipment and vehicles
 Collateral certificates or warehouse bonds
8. No guarantee: All guarantees not listed in any of the foregoing sections and all unsecured loans are
classified in this category by the Bank and its subordinates.
Accordingly, each borrower has a different LGD, depending on the type of collateral guarantee supporting
the operation.
Because collateral guarantees are an important factor in calculating expected losses, the respective
policies and criteria applied by the Bank are described below.
(Continued)
26
Policy on Admitting and Managing Collateral Guarantees
Collateral guarantees are additional support the Bank require from clients to reduce the risks inherent in
lending. Collateral guarantees are not considered payment instruments.
Policy on Requiring Additional Collateral Guarantees
 When required pursuant to the law on credit limits.
 Preferably, loans for more than three (3) years should have admissible collateral guarantees.
 Collateral guarantees may not be shared with any of the client’s other creditors, unless shared to the
same degree with subordinates of the Bank located outside the country, with its affiliates or in syndicated
loans.
Formalities for Constituting Collateral Guarantees when Granting Loans
 Collateral guarantee incorporation documents must be written according to the instructions prepared for
that purpose by the Legal Department of the Bank.
 The following applies to collateral guarantees, when furnished:
 In the case of a collateral guarantee constituted on non-residential property, the value on the date it is
pledged is that obtained through a professional appraisal done not more than three (3) years earlier.
 For collateral guarantees constituted on machinery and/ or equipment, the value is determined
according to the age of the item. Specifically, if the machinery or equipment is less than one year old,
the value will be the invoiced value for three years. If more than one year old, it will be the
professionally appraised value at the execution date.
 In the case of collateral guarantees constituted on vehicles, the reference values published by
Fasecolda are used or, if not available, the commercial appraisals published by the Ministry of
Transport are used.
 With respect to collateral guarantees constituted on other goods or assets, the value of the guarantee
on the date of constitution pertains to the professionally appraised value.
Managing Guarantees
 It is the borrower’s responsibility to maintain the collateral guarantee appropriately. The commercial
officer for the account must verify compliance with this rule by:
- Supervising the constitution of collateral guarantees
- Verifying the existence and validity of insurance policies
- Verifying all required documentation and information, and making sure it is filed properly.
(Continued)
27
 The Collateral Guarantee Control System facilitates this job by providing:
- Information on expiration of insurance policies
- Information on documents
 The Document Management Center is responsible for the suitable custody of collateral guarantees.
Distribution of Collateral Guarantees
 A loan may be backed by collateral belonging to the borrower or by collateral owned by someone other
than the borrower.
 Collateral guarantees are allocated for up to 100% of the outstanding balance on the loan.
Open Collateral Guarantees
 When a collateral guarantee covers several borrowers, priority in allocation is given to those with the
largest PD.
 When several loans have the same PD, because they pertain to the same borrower, priority in allocation
is given the loan with the largest outstanding balance.
 Collateral guarantees pending allocation to the loans they secure are allocated in ascending order of
LGD.
 For loans with no deferred payments, the exposed balance of the loan (principal, interest, others) is sent
for distribution.
 For loans with deferred payments, the exposed balance of the loan is sent once the deferred payments
have been deducted.
Closed Collateral Guarantees
The respective loan is covered only up to 100% of the outstanding balance, without exceeding the legal
limit of the value of the guarantee.
Reappraising Collateral Guarantees
External Circular 043/2011 included the instructions on mandatory assessment of admissible collateral for
loans, based on the following criteria:
 Real estate for residential use:
A professional appraisal is required to furnish the guarantee. The appraisal must be valid for one year,
after which the value of the collateral must be updated pursuant to the following indexes:
 Urban and Rural Real Estate Reappraisal Index (IVIUR in Spanish) for property in Bogotá D.C.
(Continued)
28
 Landed Property Reappraisal Index (IVP in Spanish) for the rest of the country.
 Non-residential real estate:
To furnish collateral, it must be professionally appraised. The appraisal is valid for no more than three (3)
years. At the end of that period, and at least every three (3) years thereafter, a new professional appraisal
is required to update the value of the property.
 Machinery and equipment
In the case of machinery and equipment that is new or less than one year old, the purchase price shown
on the respective invoice or on the borrower’s books is used as the value of the collateral.
In the case of machinery and equipment that is more than one year old, the value of the collateral at the
time it is furnished is the professionally appraised value.
This amount is valid for three (3) years. Afterwards, and at least every three (3) years, a new professional
appraisal must be done to update the value of the collateral.
 Collateral constituted on vehicles
Vehicles classified in the Fasecolda Price Listing: The value of the respective vehicle when the collateral
is furnished and at subsequent monthly updates shall be the price published in this listing.
Vehicles not classified in the Fasecolda Price Listing: The information on commercial appraisals published
by the Ministry of Transportation may be used to determine the value of these assets; if not, the procedure
described earlier for machinery and/or equipment may be applied.
 Collateral constituted on securities
Using the value provided by a valuation price supplier authorized by the Colombian Superintendency of
Finance.
 Collateral constituted on other assets
This is the value obtained through a professional appraisal and updating of the same. The appraisal
must be done according to the particular characteristics of the asset.
c. Exposed value of the Asset
In the commercial and consumer loan portfolio, the exposed value of an asset is understood as the
outstanding balance with respect to principal, interest, accounts receivable for interest and other
receivables.
(Continued)
29
Mortgage Loans and Microcredit Loans
General Allowance
The general allowance is at least one percent (1%) of total gross mortgage loans and microcredit.
The Bank invariably maintain allowances equal to no less than the following percentages of the balance
pending payment:
Microcredit loans
Category
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E – Uncollectible
Principal
%
1
3.2
20
50
100
Mortgage loans
Interest and
Other Items
%
1
100
100
100
100
Secured
Principal (%)
1
3.2
10
20
30
Unsecured
Principal (%)
1
100
100
100
100
Interest and
Other Items
%
1
100
100
100
100
In the case of mortgage loans, if the loan remains in category “E” for two (2) consecutive years, the rate of
provisioning on the secured portion increases to sixty percent (60.0%). If one (1) more year transpires
under the same conditions, the provisioning rate on the secured portion is raised to one hundred percent
(100.0%).
Effect of Admissible Guarantees on the Establishment of Individual Allowances
For the purpose of establishing individual allowances, a collateral guarantee secures only the principal of
a loan. Therefore, the amortizable balance of loans secured with admissible collateral guarantees is
provisioned according to the percentage pertaining to the loan category, applied as follows:
 For the unsecured portion of mortgage loans, the percentage is applied to the difference between the
unpaid balance and one hundred percent (100%) of the value of the collateral. For the secured portion, it
is applied to one hundred percent (100%) of the balance of the secured debt.
 For microcredit, the percentage is applied to the difference between the unpaid balance and seventy
percent (70%) of the value of the collateral. In these cases, depending on the nature of the guarantee
and the amount of time the loan is past due, only the percentages of the total value of the guarantee
listed in the following tables are considered when constituting the allowances.
Non-mortgage Guarantee
Percentage of
Time past due
coverage
0 to 12 months
70%
Over 12 and up to 24 months
50%
Over 24 months
0%
(Continued)
30
Mortgage Guarantee or Admissible Mortgage Trust
Guarantee
Percentage of
Time past due
coverage
0 to 18months
70%
50%
30%
Percentage of
Time past due
coverage
15%
Over 36 months
0%
Alignment Rules
The Bank align the ratings of their borrowers according to the following criteria.
a. Prior to making allowances and equalizing ratings, the Bank conduct a monthly internal alignment for
each borrower, placing loans of the same type to the same borrower in the highest risk category.
b. The Bank are obliged, by law, to consolidate their financial statements. For that reason, loans of the
same type to the same borrower are assigned to the same risk category.
Equating the Loan Allowance of Consolidated Leasing Bogota Panamá
Equating the loan allowances of Leasing Bogotá Panama and its subordinates to the accounting principles
on loan allowances established by the Colombian Superintendency of Finance is being done in two
stages: i ) taking, as a base, the allowances it calculates according to accepted accounting principles in
the United States ( US GAAP); and ii ) estimating the required additional adjustment to that base.
Expected loss models are used to determine the allowances for Leasing Bogotá Panama and its
subordinates, under US GAAP, based on internal client ratings that reflect actual economic conditions and
experience with historic loss and default, according to the type of portfolio (commercial, consumer and
mortgage loans).
Methods that incorporate additional risk criteria to adjust risk ratings for the clients of Leasing Bogotá
Panama and its subsidiaries were designed for each of the different types of loans (commercial, consumer
and mortgage) to estimate the required additional adjustment. Countercyclical factors were included as
well, the idea being that larger allowances than would be necessary during periods of better loan quality
could be established to compensate for those that would be necessary in periods when loan quality
deteriorates.
Accordingly, the required adjustments for risk and countercyclical factors, based on the criteria outlined
above, were added to the loan portfolio allowances for Leasing Bogotá Panamá and its subsidiaries,
under USGAAP, to bring portfolio allowances in line the accounting standards established to that effect by
the Financial Superintendency of Colombia.
(Continued)
31
j)
Recognizing Income from Yield and Financial Leases
Interest income on loans and financial leases is entered on the books when accrued.
Suspension of Interest Accrual
In the case of loans, the Bank suspend the accrual of interest, monetary correction, exchange adjustments
and other income when a loan is in arrears. This is done according to the following table:
Type of Loan
Commercial
Consumer
Mortgage loan
Microcredit
Arrears Over:
3 months
2 months
2 months
1 month
Consequently, the statement of operations is not affected until these items are actually collected. Up to
that time, the respective entry is made in memorandum accounts.
Moreover, interest accrual is suspended as of the first day past due in the event of loans for which interest
accrual has been suspended in the past.
In cases where interest recorded in memorandum accounts or balances of loans written off, including
principal, interest and other proceeds, is to be capitalized as a result of restructuring or other types of
agreements, it is recorded as a deferred credit and amortized on the statement of operations in proportion
to the amounts actually received.
Special Rule on Allowances for Receivables (Interest, Monetary Correction, Leasing Payments,
Exchange Adjustment and Other Items)
When the Bank suspend the accrual of yield, monetary correction, exchange adjustments, leasing
payments and other income from these items, a full allowance is made for the total amount accrued and
not collected under those headings.
k)
Customers´ Acceptances, Spot Transactions and Derivatives
Banker’s Acceptances
These are commercial transactions in which the Bank and its Subordinates, by signing a bill of exchange
as the accepter, are obliged to pay a third party (the beneficiary), within a specified period, a bill of
exchange drawn by one of their clients (the requester) due to the purchase/sale of merchandise for a
certain amount.
Banker’s acceptances have a maximum maturity of one (1) year and may originate only with transactions
involving the import or export of merchandise or the purchase/sale of movable goods within the country.
When these bills of exchange are accepted, their value is entered simultaneously under assets and
(Continued)
32
liabilities as “current bankers’ acceptances”. If not presented for payment at maturity, they are classified
as “non-current bankers’ acceptances”. If, upon payment, they have not been covered by the purchaser
of the merchandise, they are reclassified to the loan account as “covered bankers’ acceptances”.
At maturity, banker’s acceptances are subject to the reserve requirement applicable to instruments
payable on demand and before thirty (30) days.
Spot Transactions and Derivatives
Spot transactions are cleared and settled within three (3) business days immediately after the date they
are agreed.
The Bank and its subordinates record transactions with financial derivatives. The main feature of these
operations is the fact that their fair value depends on one or more underlying factors and their clearing or
settlement is done later. These transactions are conducted for various reasons, the following being the
main ones.
 To offer products tailored to the client’s needs. One such function, among others, is to hedge the client’s
financial risks.
 To structure portfolios for the Bank and its subordinates by taking advantage of opportunities for
arbitrage between different curves, assets and markets.
 The Bank and its subordinates use derivative operations to hedge asset and liability risk positions on
their balance sheets and to act as brokers with clients involving exchange and interest rates on local and
foreign markets.
Types of Financial Derivatives:
The Bank and its subordinates employ different strategies by mixing basic derivatives (forwards, call and
put options and swaps) or by combining them with other financial instruments. Strategies of this type can
be put together and marketed as a “product,” thereby creating a wide range of solutions with different
functions in terms of cost and earnings, all within the established limits and without incurring unauthorized
risk.
The different combinations and/or strategies are valued, managed, controlled and entered on the books
according to their basic components.
 Forwards
A forward contract is a tailor-made derivative drawn up between two (2) parties who agree to
purchase/sell a specific quantity of an underlying instrument at a future date. The basic terms and
conditions are established when the contract is entered into; namely, the price, the date the underlying
instrument will be delivered and how. Forwards are settled on the due date through physical delivery of
the underlying instrument or by settling any differences, depending on the agreed mode of delivery. The
latter may be modified during the term of the forward contract, by mutual agreement between the parties.
(Continued)
33
Forwards traded in the over the counter market (OCM) may be settled and cleared through the Central
Counterparty Clearing House.
 Options
An option is a contract that gives the holder the right or option, but not the obligation, to purchase or sell
a specific amount of an asset at a set price on a set date, or during a specified period of time. The other
party to the contract is obliged to sell or buy the asset on the date the holder chooses to exercise the
option, pursuant to the conditions established to that effect in the contract with respect to quantity,
quality and price.
 Swaps
A swap or financial exchange is an operation in which two parties agree to exchange a series of cash
flows that are calculated according to certain contractual conditions and are to be settled on specific
dates agreed at the onset of the operation.
The purpose of swaps is to reduce risks generated by fluctuations in currency exchange rates and/or
interest rates. Generally speaking, these contracts are used to hedge long-term operations with more
than one residual flow.
Swaps may involve interest rates or contracts in which the cash flows paid by both parties are
denominated in the same currency. There also are foreign exchange or currency swaps where the
operational flows are denominated in different currencies.
There are two types of interest rate swaps: fixed-for-floating and floating-for-floating.
An interest rate swap (IRS) is a contract between two parties who want to exchange one stream of future
interest rate payments for another, held at different interest rates. In this type of swap, there is normally
no exchange of the principal, and the swap is expressed in a single currency.
A cross-currency swap (CCS) is an agreement between two parties to exchange the principal of a loan
in one currency for the principal of a loan in other currency, for a set period of time.
While the contract is in effect, each party pays the interest on the principal received in the swap. On the
amortization dates and/or when the contract expires, the principals are exchanged back into the original
currencies at the agreed rate of exchange.
There are three types of currency swaps: fixed-for-fixed, floating-for-floating, and fixed-for-floating.
 Futures
A futures contract is a standardized agreement with respect to its expiration date, size or face value, the
characteristics of the respective underlying instrument, and where and how it is to be delivered (in cash
or kind). It is negotiated on a stock exchange and settled through a central counterparty clearing house
(CRCC in Spanish).
(Continued)
34
The Bank and its subordinates trade standardized financial derivatives on the Colombian Stock
Exchange (BVC, hereinafter), which in turn establishes the rules for trading and participation by the
different members of the market. The trading system managed by the BVC is known as X-Stream.
The CRCC manages the clearing and settlement of operations and respective risk control. It also acts as
the central counterparty in the market for standardized derivatives traded on the BVC, or operations
traded in the over-the-counter market (OCM) and novations with the CRCC.
Accordingly, once these operations are entered into the trading system, the CRCC comes between the
participants, acting as the buyer and reciprocal seller of all open positions in the market.
Banco de Bogotá acts as a general settlement member of the CRCC. It is, therefore, able to settle and
clear its own operations and those of non-settlement members and third party non-settlement members
with whom it has signed an agreement to that effect.
The Bank has structured two types of financial services pursuant to the operating requirements of the
CRCC-organized market for standardized derivatives:
 The first, which is designed to support its condition as an investor in its own position,
standardized derivatives.
deals in
 The second is focused on non-settlement members (persons and legal entities). It uses the Bank’s
position as a settlement member to manage guarantees and to conduct clearing and settlement with
the Central Counterparty Clearing House.
The Bank registers notional bond futures and specific reference securities under this item, as well as
dollar/peso exchange futures, according to the general terms and conditions listed below:
Underlying Asset
Contract Size
Contract Generation
Settlement Method
Notional Bond Futures
Exchange Rate Futures
A theoretical bond known as a notional
The TRM for the day, as calculated and certified
bond and fixed-rate class B TES in
by the Colombian Superintendency of Finance
pesos, specific references
COP$ 250
USD 50,000 or USD5,000 (mini contract)
Monthly and quarterly cycle
within the March cycle
Physical delivery
Quarterly cycle within the March cycle, to have
maturities up to one year / six (6) maturities
Financial
Last Trading Day
Wednesday in the first week of the Wednesday in the second week of the maturity
maturity month
month
Contract Expiration
(Maturity) Date
Friday in the first week of the maturity Thursday in the second week of the maturity
month
month
(Continued)
35
Recording and Valuing Financial Derivatives:
Financial derivatives may be traded for any of the following purposes:
Hedging other risk positions
Speculation for profit
The way financial derivatives are entered on the books depends on why they were negotiated.
In addition to derivatives for speculative purposes, the Bank reported derivatives to hedge assets and
liabilities in foreign currency, as authorized by its Board of Directors on October 26 and December 28,
2010.
Yet, regardless of the purpose of the operation, financial derivatives that yield a positive fair value; that
is, one favorable for the institution, are recorded under assets, separating the value of the right from the
value of the obligation, except in the case of options, where the entry is made in a single account. Those
yielding a negative fair value; that is, one unfavorable for the institution, are entered under liabilities, with
the same separation being made. Also, there is no netting between the favorable and unfavorable
balances of different operations, even if they are of the same type.
1. Financial Derivates for Speculative Purposes
These operations are listed on the balance sheet as of the date they are entered into and at their fair
value.
On the date financial derivatives are settled, the balances in the balance sheet accounts are cancelled
out, and any difference is entered as a profit or loss in the respective account in the statements of
operations, as appropriate. If the cumulative balance of the derivative is positive on that date, it is
recorded as income; if negative, it is entered as an outlay. This procedure is performed separately for
each instrument and for each settlement.
In the case of basic financial derivatives, the price supplier provides the information for their reappraisal,
such as interest and discount rates, reference curves, margins and indexes, among others. This is
according to of Chapter 16, Title I of the Basic Legal Circular issued by the Colombian Superintendency
of Finance.
Type of Operation
Securities Forwards
Currency Forwards
Reappraisal and Accounting
In forward purchases of securities, the right is calculated as the value of the security at market prices
and the obligation, as the present value of the agreed purchase amount.
In the case of forward sales of securities, the right is calculated by obtaining the present value of the
agreed sale amount, while the obligation is calculated by valuing the security at market prices.
The reappraisal method used by the Bank for forward and spot currency operations involves bringing the
future flows (obligations and rights) in the operation to present value (usually, one of these two flows is
denominated in US dollars and the other in Colombian pesos). Each flow is brought to present value
using the market discount rates for dollars and Colombian pesos for the term remaining in each
operation. Once the present values of the flows are identified, those denominated in foreign currency
are converted into US dollars and re-expressed in Colombian pesos using the representative market rate
(Continued)
36
Type of Operation
of exchange (TRM) calculated and certified by the Colombian Superintendency of Finance.
The market value of currency options taken by the Bank is estimated using the Black and Scholes
method.
The data used in the model to value options are obtained from the authorized price supplier.
The initial entry is the premium actually paid/received, and the changes in fair value with respect to the
initial value actually paid are recorded on the statement of operations. The rights and obligations are
entered in contingent accounts.
Options
When the Bank purchases a call or put option, the premium paid and the daily variations in fair value are
entered under assets.
When the Bank sells an option, the premium received and the daily variations in fair value are recorded
under liabilities.
On the contract settlement date, the balances for the value of the right and the obligation are cancelled
out, and any difference is entered as a profit or loss on the reappraisal of derivatives.
Swaps
Valuing a swap involves bringing each of the future flows to present (discounted) value, then converting
them into the base accounting currency. To do so, the Bank updates the market data (interest and
exchange-rate curves) and, in accordance with the particular features of each operation, it projects the
future flows on each swap operation.
The sum of the present values of the flows projected for receipt is recorded as a right, and the sum of the
series of flows projected for delivery is entered as an obligation.
With derivatives of this type, losses and gains are settled daily. The Central Counterparty Clearing
House (CRCC) reports daily on the results of settlement between the parties and proceeds to debit or
credit the losses or gains made.
In the case of notional bond futures and specific reference TES, if the Bank has a short position at
contract maturity, it notifies the CRCC of the security with which it wants to fulfill its obligation, according
to the specifications of the basket of deliverables, and transfers it through security depositories (DCV
and / or DECEVAL).
For dollar/peso exchange futures, settlement at contract maturity is made against the underlying price
(TRM) published on the last trading day.
Futures
The value of the obligation to be recorded on the seller’s balance sheet in Colombian pesos (a right for
the buyer) is the price of each unit of the futures contract, as reported by the BVC on the reappraisal
date, multiplied by the number of contracts and by the face value of each one. The value of the right to
be registered on the seller’s balance sheet in Colombian pesos (an obligation for the buyer) is the price
of each unit established in the futures contract, multiplied by the number of contracts and by the face
value of each one.
Because futures are subject to daily clearing and settlement, the value of the obligation is equal to the
value of the right. These values are updated day by day, according to the market price of the respective
future, and the effect on profit and loss is equivalent to the variation in the fair price of the future.
Novation forwards are forward operations traded initially in the over-the-counter market, and the
counterparts in these operations mutually agree to take them to a central counterparty clearing house
for clearing and settlement. The agreement is governed by the framework contract between the
respective parties until the date the risk exchange intervenes as a counterpart in the operation. As of
that moment, its rules apply and, therefore, the framework contract signed previously by the initial
(Continued)
37
Type of Operation
counterparts to the financial instrument ceases to have effect. The respective central counterparty
clearing house also must ensure the Colombian Superintendency of Finance has access to information
on these operations, if required.
The accumulated balance registered on the balance sheet up to the day the central counterparty clearing
house actually accepts the operation is entered that same day as an account receivable or an account
payable in the name of said exchange, as appropriate. That account is cancelled out in the process of
clearing and settling these operations, pursuant to the rules of the respective Central Counterparty
Clearing House.
2. Financial Derivatives for Hedging
Derivates used to hedge the exchange risk posed to the Bank by its investments in affiliates and
agencies outside the country are handled in a special way from an accounting standpoint.
These operations are intended to protect the Bank’s assets and liabilities in foreign currency from
exchange risk generated by the structural positions of its affiliates and agencies abroad.
The Board of Directors of Banco de Bogotá, in compliance with its policy to protect the organization’s
exchange risk balance in the structural positions of its foreign subsidiaries, decided as of December
2010, to designate a series of derivative transactions (dollar-peso forward operations) as hedging
instruments. These are clearly identified in the application used.
The way financial derivatives for hedging are entered on the books depends on the type of hedging
involved. The following applies to hedging for assets and liabilities in foreign currency.
The value of the daily aliquot resulting from accrual of the implicit revaluation or devaluation agreed in
the financial derivative and the movement in the exchange rate is entered in the respective subaccount on the statement of earnings, according to the implicit revaluation or devaluation agreed in the
derivative, calculated using the representative market rate of exchange (TRM) for the trading day.
Accumulated profit or loss on a financial derivative is recorded in the statement of operations, as
indicated in the preceding paragraph, and the difference is entered in the equity account under
“Unrealized accumulated gain or loss on financial derivatives for hedging – Hedging assets or liabilities
in foreign currency,” with the respective sign.
 On the date hedging ends, the accumulated result of the financial derivative used for this type of
coverage, which appears in the equity sub-account under “unrealized accumulated gain or loss on
financial derivatives for hedging assets or liabilities in foreign currency,” is transferred to the statement
of operations, specifically to the respective sub-account for derivatives.
The primary positions hedged are registered as follows:
a. The primary position continues to be registered at its respective face value on each date, in the
same balance sheet and statement of operations accounts, using the same method and procedure
as would be the case if it were not hedged.
(Continued)
38
b. At the start of hedging with financial derivatives, the present value of the primary position is entered
in memorandum accounts.
Peso/US dollar forward operations with different maturity profiles are the financial derivatives used for
hedging. Although these derivatives hedge against exchange risk, they generate volatility in the
statement of operations, given the variation in other associated risk factors, such as dollar/peso
devaluation curves (interest rate differential). The objective in the way hedging is treated from an
accounting standpoint is to isolate the impact on the statement of operations caused by the volatility
originating with variations in risk factors other than the exchange risk. This is done by only recording
income/losses from agreed exchange re-expression and devaluation in the statement of operations,
while the portion of the variation in fair value pertaining to other factors (changes in the forward curve,
the passing of time, etc.) is entered in the equity accounts.
(l)
Foreclosed Assets, Salable and Returned Assets and Those Not Used in the Corporate Business
The value of assets received by the Bank and its subordinates through foreclosures on outstanding loans
in their favor is registered in this account.
Foreclosed real estate is accepted on the basis of a professional commercial appraisal. Movable assets,
shares and equities are accepted at their market value.
The following are the conditions for recording assets received through foreclosure:
 The initial entry is based on the value decided by the courts or agreed on with the debtors.
 When a foreclosed asset is not in marketable condition, its cost increases with the necessary expenses
incurred to make it so.
If the difference between the value for which the asset was received and the value of the loan to be paid
off represents a credit for the borrower, it is registered as an account payable. If the value of the asset
does not cover the entire liability, an allowance equivalent to the difference is constituted.
Salable assets are registered at their acquisition or production cost, which includes the direct and indirect
costs and expenses incurred by the Bank to place them in condition for sale or use.
Leased assets returned to the Bank and its subordinates by clients or tenants who default or do not
exercise their option to buy are recorded as returned assets and are not subject to depreciation.
Assets not employed in the corporate business are ones the Bank and its subordinates have for their own
use, but are no longer dedicated to the pursuit of their business activities. These assets depreciate until
disposed of and are calculated together with the fixed assets of the Bank and its subordinates to
determine compliance with the limits established by the Colombian Superintendency of Finance with
respect to investments in construction and the acquisition of real estate.
(Continued)
39
(m) Allowance for Salable Assets, Foreclosed Assets, Returned Assets and Those Not Used in the
Corporate Business
Real Estate
The Bank and its subordinates calculate individual allowances for real estate, using the model approved
by the Colombian Superintendency of Finance. The model estimates the maximum loss expected on the
sale of foreclosed real estate, based on the history of recovery on assets sold and including expenses
incurred in the receipt, upkeep and sale of such properties, which it groups into common categories to
estimate the base allowance rate. This rate is adjusted by means of a factor that takes into account the
time transpired since receipt of the asset and is applied over a maximum period of forty-eight (48) months
until eighty percent (80.0%) of the allowance is achieved. However, in the event an extension is not
requested prior to expiration of the deadline for disposal of the property, or if an extension is not granted,
the Bank must establish, pursuant to its internal models, an additional allowance up to 80% of the value of
the foreclosed asset. This is done once the two-year period has transpired.
Almacenes Generales de Depósito - ALMAVIVA S.A., a subordinate company, calculates individual
allowances for foreclosed assets and returned property based on the provisions in External Circular 100/
1995 and in view of the fact that it has no model to calculate anticipated losses.
In the case of real estate, an allowance equivalent to thirty percent (30.0%) of the acquisition cost of the
property is established in monthly aliquots within the year following receipt of the property, and is
increased in monthly aliquots during the second year by an additional thirty percent (30.0%), until it
equals sixty percent (60.0%) of the acquisition cost. Once the legal deadline for sale has expired, and if
no extension is authorized, the allowance must equal eighty percent (80.0%). If an extension is granted,
the other twenty percent (20.0%) can be established within that extended time period.
When the commercial value of real estate is less than the book value of the foreclosed property, an
allowance is registered for the difference.

In the case of real estate received two (2) or more years prior to the aforementioned circular, an
additional allowance up to eighty percent (80%) of the acquisition cost of the property was established
through monthly aliquots.
Movable Assets
In the case of movable assets received through foreclosure, an allowance equivalent to thirty-five percent
(35.0%) of the acquisition cost is established within the year following receipt, and increased during the
second year by another thirty-five percent (35.0%) until the allowance represents seventy percent (70.0%)
of the book value of the asset prior to provisioning. If the legal deadline for sale expires and no extension
is authorized, the allowance must equal one hundred percent (100.0%) of the book value. If an extension
is granted, the remaining thirty percent (30.0%) will be provisioned within that extended time period.
Allowances for assets received through foreclosure or returned assets on lease may be recovered when
these assets are sold for cash. If they are loaned or leased, the profits originating with their transfer from
(Continued)
40
assets to the loan and financial leasing account are deferred during the term agreed on for the operation
in question.
Rules on the Legal Deadline for Sale
Assets received through foreclosure are to be sold within two (2) years of the date of their acquisition.
However, they may be registered on the books as fixed assets when they are necessary in the normal
course of business and provided the limits on investment in assets are met.
An extension in the deadline for their disposal may be requested from the Colombian Superintendency of
Finance. However, regardless of the situation, the request must be submitted before the legal deadline
expires.
The respective request must demonstrate it has been impossible to sell the property, notwithstanding due
diligence to that effect. In any case, the deadline may not be extended for more than two (2) years as of
the date when the initial legal deadline expired. During the extension period, efforts to dispose of these
non-performing assets must continue.
(n) Property and Equipment
This account registers tangible assets acquired, constructed or in the process of being imported, built or
assembled that are employed routinely to develop the business and have a useful life of more than one (1)
year. The amounts include the direct and indirect costs and expenses accrued until such time as the asset
is placed in working condition.
Non-routine additions, improvements and repairs that significantly increase the useful life of assets are
entered as increased value. Outlays for maintenance and repairs made to preserve these assets are
charged to expenses, as accrued.
Depreciation is recorded using the straight-line method, based on the useful life estimated for the asset (in
years). The following are the annual depreciation rates applied to each item listed under assets:
 Buildings
 Silos and warehouses
 Office equipment, furniture and fixtures
 Moving equipment and machinery
 Computer equipment
 Vehicles
5%
5%
10%
10%
20%
20%
The Bank record the acquisition cost and all other expenses accrued to import assets for lease as
“property, plant and equipment,” even if they have yet to be received.
(o) Branches and Agencies
The account records movement in operations between general management of the Bank and its national
subordinates and their branches and agencies, as well as movement through operations between offices
in Colombia and agencies outside the country.
(Continued)
41
The balances are reconciled daily and pending items are put in order within no more than thirty (30)
calendar days.
Each time the accounts are closed, the Bank and its national subordinates reclassify the net balances
reflected the sub-accounts for branches and agencies by moving them to the asset or liability accounts,
and respective income and expenses are acknowledged.
(p) Prepaid Expenses and Deferred Charges
Prepaid expenses are outlays made by the Bank and its subordinates to develop their business, the
benefits of which are received in different periods. These expenses can be recoverable and assume
successive delivery of the services to be received.
Deferred charges are costs and expenses the benefits of which are received in future periods. They
cannot be recovered and amortization is recognized as of the date they help to generate income.
Accrual or amortization is done as follows:
Prepaid Expenses
 Interest during the prepaid period
 Insurance, over the life of the policy
 Rent during the prepaid period
 Equipment maintenance, during the life of the contract
 Prepaid cost of work not yet billed to the real sector
 Fees prepaid to the real sector during the period
 Licenses and permits processed during the period
 Services prepaid during the period
 Software and hardware updated and maintained
 Other prepaid expenses during the period when the services are received
Deferred Charges

Pre-operative and organizational charges are amortized within a maximum period of five (5) years.

Remodeling is amortized during a period of no more than two (2) years.
(Continued)
42

Studies and projects are amortized within a maximum period of two (2) years.

Computer software is amortized in a period of no more than three (3) years.

Stationary and office supplies are amortized when actually consumed.

Improvements to rented property are amortized over the shorter term of the respective lease,
excluding renewals and the probable useful life of the improvements.

A discount on the sale of securities in foreign currency is amortized within 10 years.

A deferred income tax “debit” for temporary differences is amortized upon compliance with the legal
and regulatory requirements stipulated in the tax law.

Advertising and publicity are amortized during a period equal to the accounting period, if the amount is
more than 20 times the SMLV (minimum monthly wage). In the case of expenses for advertising and
publicity to launch a new product or to bring about a change in image, the amortization period may be
no more than three (3) years.

The equity tax is amortized during the period from 2011 to 2014 based on Decree 514/2010, which
added Article 78 in Decree 2649/1993.

Contributions and memberships, during the prepaid period

Loss from adjustment in the appraisal of securities is amortized in daily aliquots using the straight line
method.

Surplus investment cost over book value generated in the acquisition of investments is amortized at
five (5) years.

Commissions and fees paid for issues and acquisitions are amortized during a period of three (3)
years.

“Construction project for concessions” pertains to the costs incurred for the project up to completion of
the work. The costs per section are amortized using the straight line method, as of the moment the
respective section begins to operate and up to the end of the concession contract.

Other deferred charges are amortized during the estimated period, and awarding costs are amortized
during the life of the loan.
(q) Intangible Assets
The unamortized balance for goodwill originating with the purchase of Banco de Crédito y Desarrollo
Social MEGABANCO S.A. and AFP Horizonte Pensiones y Cesantías S.A. is amortized over a period of
(Continued)
43
twenty (20) years, using the exponential method outlined in Chapter XVII of the Basic Accounting and
Financial Circular issued by the Colombian Superintendency of Finance.
r)
Assets to be Placed under Lease Contracts
New assets that were acquired by the Bank and its subordinates, but have yet to be leased out under
contract because some requirement for their legalization is lacking, are registered in this account.
(s) Trust Rights
This account records the rights acquired in a mercantile trust that afford the trustee or the beneficiary the
possibility of exercising them in accordance with the trust agreement or under the law.
The transfer of one or more assets to the trustee by the trustor or the beneficiary is registered at the
adjusted cost, for accounting purposes, so the transfer generates no profit for the trustor and profits will
affect earnings only when the asset or assets placed in trust are “actually” sold to third parties.
(t)
Reappraisals
 Reappraisals of investments in equity securities available for sale are recorded on the basis of variations
in the issuer’s equity.
 Real estate reappraisals are determined by the difference between the net cost of the property and the
value of commercial appraisals done by recognized, independent professional appraisers or appraisal
firms. In the event of a loss in market value, an individual allowance is made for each property, based on
the standard of prudence.
 Reappraisals of artistic and cultural works are recorded based on the condition of such works, their
originality, size, technique and the prices quoted for similar works.
(u) Prepaid Income
The Bank and its subordinates use this account to record deferred income and income received in
advance in the development of their business. It is amortized during the period when it is accrued or the
respective services are rendered.
(v) Retirement Pensions
At the close of each period, the Bank and its subordinates prepare an actuarial study according to the
method indicated by the Colombian Superintendency of Finance. This is done to determine the present
value of all future obligations, by charging them to the statement of operations.
Pursuant to Decree 4565 of December 7, 2010, the Bank determined the percentage amortized by
December 2009 and the portion yet to be provisioned, in order to amortize the outstanding balance based
on the financial statements at December 31, 2010 and up to the year 2029.
(Continued)
44
Retirement pension payments are charged to the established allowance.
(w) Estimated Liabilities and Provisions
The Bank and its subordinates register allowances to cover estimated liabilities, considering:
A right has been acquired and, consequently, there is an obligation;
Payment becomes due or is likely;
The allowance is justifiable, quantifiable and verifiable.
Estimates for taxes, contributions and memberships also are registered in this account.
(x) Converting Transactions into Foreign Currency
Transactions in foreign currencies other than U.S. dollars are converted into U.S. dollars then restated in
Colombian pesos at the representative market rate of exchange calculated on the last business day of the
month and certified by the Colombian Superintendency of Finance. The rates at June 30, 2014 and
December 31, 2013 were $1,881.19 (in pesos) and $1,926.83 (in pesos), in that order.
(y) Equity Tax
Through Tax Reform Act 1370, which was passed in December 2009, the national government created a
net worth tax for the tax years from 2011 to 2014. It is charged to persons and legal entities at a rate of
6% on their net worth at January 1, 2011.
For accounting purposes, the Bank and its subordinates made it a policy to treat the entire tax as a
liability, payable in eight (8) installments during the period from 2011 to 2014 against deferred charges,
which are amortized during the same 2011-2014 period. This is based on Decree 514/2010, which added
Article 78 of Decree 2649/1993.
(z) Deferred Tax Debit/Credit
This account lists the temporary differences between commercial income and taxable income. It is
canceled out when the differences generating it are reversed.
(aa) Contingent Accounts
These accounts register operations whereby the Bank and its subordinates acquire a right or assume an
obligation contingent on a future event that might or might not occur, depending on future, eventual or
remotely possible factors. Financial returns and the financial component of leasing payments are
registered in debtor contingent accounts as of the moment accruals in the loan and leasing accounts are
suspended.
Leases due to expire are an important aspect of these accounts. The current portion consists of payments
and options to buy that are set to expire within the coming year. The non-current portion of such
agreements is the part that expires after the first year.
(Continued)
45
Values transferred under repo or simultaneous operations are recorded in debtor and creditor contingent
accounts.
(bb) Memorandum Accounts
These asset and liability accounts record thirty-party operations that do not affect the financial situation of
the Bank and its subordinates, due to their nature. They also include tax memorandum accounts
registering the data required to prepare tax returns, as well as accounts used for fiscal purposes, internal
control or those containing general information of interest to management.
(cc) Fiduciary Memorandum Accounts
Fiduciary memorandum accounts reflect third-party assets, liabilities, equity and operations that, by virtue
of legal rules or contracts, are being managed by the fiduciary company of a broker.
The values on record pertain to the consolidated value from each of the activities developed by the
managing company, without detriment to independent accounting for each portfolio or business being
managed and the need to prepare separate financial statements.
dd) Related Parties
The Bank records asset and liability balances as well as income and expenses accrued in each period for
transactions with economically related parties, such as shareholders, members of its Board of Directors
and senior management, as well as entities that are subordinate and part of the combined operation. This
is done according to External Circular No. 100/1995, Chapter IX; External Circular No. 002/1998, Chapter
III; Single Decree 2555/2010, Part 6, Section I and the Commercial Code, Chapter V.
ee) Alignment with International Accounting Standards
The Technical Regulatory Framework (TRF) applicable to the preparers of financial information in Group 1
was established in Decree 2784/2012 and its amendments. Banco de Bogotá is part of that group,
according to the classification criteria outlined in said decree. The TRF includes the International
Financial Reporting Standards (IFRS) issued in Spanish on January 1, 2013 by the International
Accounting Standards Board (IASB) and must be applied in the preparation of consolidated financial
statements. The Bank and its subordinates must apply the TRF in the preparation of individual
statements, apart from non-application of International Accounting Standard (IAS) 39 and International
Financial Reporting Standard (IFRS) 9 with respect solely to treatment of the loan portfolio and its
deterioration on individual financial statements, as per Colombian Government Decree 1851/2013.
Chapter II of the Basic Accounting and Financial Circular, with its attachments, and the Single Accounts
Plan currently in effect are applied instead, as per External Circular 038/2013 issued by the Financial
Superintendency of Colombia. Decree 1851 is in the process of being amended and proposes including
non-application of ISA 39 and IFRS 9 for the entry and reappraisal of investments.
Application of these standards is mandatory for the Bank and its subordinates as of January 1, 2014. The
financial statements at December 31, 2014 will be the last ones prepared according to the current
accounting standards in effect for the Bank and its subordinates, pending transition to the IFRS.
(Continued)
46
According to Article 4, Law 1314/2009, the tax rules are autonomous and independent of those applicable
to accounting and financial information. Pursuant to Article 165, Law 1607/2012, during the four (4) years
after the date the IFRS take effect, the tax bases for the items included in tax returns will remain
unchanged.
(3) Principal Differences between the Special Accounting Rules and the Accounting Standards
Generally Accepted in Colombia
The special accounting rules established by the Colombian Superintendency of Finance differ somewhat
from the accounting standards generally accepted in Colombia. The following are some examples.
Investments in Equity Securities Available for Sale
Reappraisal losses (a negative difference between the book value and the market or cash value) in low or
medium turnover or unlisted equity securities available for sale are registered under assets and under
equity as a reduction in their value. According to the generally accepted standard, an allowance is made in
these instances and charged to expenses. In the case of investments in high or medium turnover equity
securities available for sale, updating the market value directly affects the book value listed under assets
and the unrealized accumulated gain or loss in equity.
Property, Plant and Equipment
The generally accepted accounting standards indicate the net value of property, plant and equipment with
an adjusted value more than twenty (20) times the minimum monthly wage (SMMLV – Spanish acronym)
at the close of the accounting period must be marked to market or present value, with the necessary
reappraisals and allowances entered. The special rules contain no such requirements for assets of this
type.
Additional Paid-in Capital
The special rules require additional paid-in capital to be entered as part of the legal reserve, while the
generally accepted accounting standard calls for it to be entered separately under equity.
Adjustments in Inflation
The inflation adjustments provided for in regulatory decrees 2649 and 2650 of December 29, 1993 were
eliminated for accounting purposes as of January 1, 2001 under the special rule established in External
Circular No. 014 issued on April 17, 2001 by the Colombian Superintendency of Finance. The general rule
outlined in Decree 1536 of May 7, 2007 eliminates them as of January 1, 2007.
Financial Statements
Decree 2649/1993 indicates the statement of changes in financial position is a basic financial statement.
The Colombian Superintendency of Finance does not require it.
(Continued)
47
(4) Cash and due from banks
Detail of cash and due from banks:
June 30
Domestic currency:
Cash
Banco de la República
Banks and other financial institutions
Clearing
Remittances in transit
$
959,558
2,799,623
400,395
5,643
264
(7,255)
4,158,228
838,030
2,585,110
259,317
406
1,092
(2,548)
3,681,407
616,298
29
6,569,253
253,172
17,626
(1,168)
7,455,210
$ 11,613,438
774,033
29
5,037,165
240,129
13,482
(59)
6,064,779
9,746,186
Cash allowance
Foreign currency expressed in domestic currency:
Cash
Banco de la República
Banks and other financial institutions
Clearing
Remittances in transit
Cash allowances
December 31
Cash allowance
Opening balance:
$
Expensed allowance
Recovery of allowance
Write-offs
Exchange difference
Closing balance:
$
2,607
6,132
(235)
(32)
(49)
8,423
1,638
1,254
(284)
0
(1)
2,607
Cash and deposits in domestic currency with Banco de la República (Central Bank of Colombia) are part
of the mandatory cash reserve the Bank and its subordinates are required by law to maintain on deposits
received from their customers, given their capacity as lending institutions.
Pursuant to Article 1271 in the Commerce Code, the subordinate known as Almaviva S.A. may not use
the funds provided to it by the principal for its own business. If it does, it shall pay the latter the legal rate
of interest as of the day this rule is violated and shall compensate for any damages caused to the
principal.
(Continued)
48
The reconciliation items in domestic and foreign currency outstanding for more than thirty (30) days at
June 30, 2014 and December 31, 2013 came to $8,423 y $2,607, respectively. They are provisioned in
full.
There are no other restrictions on cash, except for the legal reserve.
(5) Money market assets and similar positions
Detail of interbank funds sold and repos:
June 30
Average
Balance
Yield
December 31
Average
Balance
Yield
Operations at 0 to 90 days (Cash equivalents)
Domestic currency
Ordinary interbank funds
Transfer commitments in closed repos
Investment transfer commitments in simultaneous operations
Total asset positions in domestic currency
$
Foreign Currency
Ordinary interbank funds sold
Total asset positions in foreign currency
Cash equivalents
28,700
813
322,854
352,367
3.91%
6.49%
3.79%
87,200
0
891,701
978,901
3.15%
0
3.21%
598,473
598,473
950,840
1.86%
1,210,677
1,210,677
2,189,578
1.51%
263,273
2.63%
310,827
2.82%
Operations over 90 days
Foreign currency
Ordinary interbank funds sold
Total money market positions
$
1,214,113
2,500,405
There are no restrictions on these operations.
(6) Investment securities, net
Debt securities for trading
June 30
Domestic currency:
Sovereign issued
Other public debt
Mortgage loans
Mortgage loan securitization issues
Non-mortgage loan securitization issues
Financial institutions
Institutions not supervised by the Colombian Superintendency of Finance
Foreign banks
Other securities
Total domestic currency
$
459,006
103,246
62
55,464
4,305
197,253
636
1,925
0
821,897
December 31
1,208,000
121,081
92
89,380
8,213
356,235
9,271
7,230
3,222
1,802,724
(Continued)
49
June 30
Foreign currency:
Sovereign issued
Other public debt
Foreign governments
Foreign central banks
Foreign banks
Multilateral lenders
Other securities
Total foreign currency
$
14,036
225
10
82
10,937
192,473
319,851
15,261
20,471
573,346
1,395,243
December 31
6,874
224
13
85
14,389
52,964
581,428
15,813
21,336
693,126
2,495,850
Available for sale
June 30
Domestic currency:
Sovereign issued or guaranteed public debt
$
Foreign currency:
Sovereign issued
Other public debt
Institutions not supervised by the Colombian Superintendency of Finance
Foreign governments
Foreign central banks
Foreign banks
Securities issued by residents abroad
Other securities
$
December 31
2,509,889
1,198
1,192
2,512,279
2,644,882
35,921
1,367
2,682,170
33,681
122,389
145,050
75,730
1,083,980
212,013
1,458,118
29,032
927
865,838
4,026,758
6,539,037
18,008
157,623
116,786
68,336
1,185,439
207,278
1,387,728
27,325
0
850,640
4,019,163
6,701,333
Held to maturity
June 30
Domestic currency:
Sovereign issued
Other public debt
$
Foreign currency:
Sovereign issued
Other public debt
Institutions not supervised by the Col. Supr. of Finance
Foreign governments
Foreign banks
$
December 31
175,261
1,469,738
1,644,999
215,750
1,276,484
1,492,234
1,911
4,364
13,209
2,992
7,728
24,641
943
5,734
61,522
1,706,521
1,986
4,513
13,594
3,090
8,121
23,278
965
5,886
61,433
1,553,667
(Continued)
50
Investment repurchase rights
Detail of investment repurchase rights:
June 30
December 31
Held for trading
Domestic currency:
Sovereign issued or guaranteed
Other public debt securities
$
Foreign currency
Other public debt
Institutions not supervised by the National Superintendent of Fin. Institutions
Foreign governments
Foreign banks
Issued by residents abroad
1,088,755
5,055
2,520
1,096,330
1,644,767
0
649
1,645,416
2,312
5,916
30,309
5,877
3,728
48,142
1,144,472
4,164
17,470
39,829
2,512
22,015
85,990
1,731,406
3,140,633
3,140,633
1,908,489
1,908,489
45,501
35,507
41,805
95,808
16,773
6,492
241,886
3,382,519
59,542
27,204
45,527
11,793
4,212
7,147
155,425
2,063,914
Available for sale
Domestic currency
Sovereign issued
Foreign currency
Other public debt
Institutions not supervised by the Col. Supr. of Finance
Foreign governments
Foreign banks
Issued by residents abroad
Investments pledged as collateral, in domestic currency
June 30
December 31
Held for trading
Sovereign issued
38,502
2,629
Available for sale
Sovereign issued
126,211
144,521
0
164,713
4,691,704
983
148,133
3,943,453
Equity securities
Shares with high turnover
$
(Continued)
51
Equity securities
June 30
December 31
Held for trading
Avianca
Banco Internacional Del Perú Interbank
Bancolombia
Banco de Occidente
Black Rock ILF EUR
Black Rock ILF USD
Bolsa de Valores de Colombia
Open mutual fund - Valores Bancolombia
Mutual funds, liquidity, open fund
Fiducoldex mutual fund
Multiplus mutual fund
Celsia
Cemargos
Correval
Davivienda
Ecopetrol
$
In severance funds – stabilization reserve
In pension funds – stabilization reserve
In third-party portfolios – FONPET stabilization fund
In thirty-party portfolios –City of Manizales stabilization reserve
In thirty-party portfolios -. Licorera de Caldas pension liability reserve
In thirty-party portfolios - Medellín pension liability reserve
In thirty-party portfolios - Rionegro stabilization reserve
F.C.O BBVA Fiduciaria
F.C.O. Fiduciaria Corficolombiana Fondo Renta Plus
FAPC Atesorar Compartimiento Pensiones III
Fabricato
Fiduciaria Popular S.A.
Fiduciaria Banco Bogotá S.A.
Fiduciaria Bancolombia – Open Mutual Fund
Fiduciaria Corficolombiana Fondo Multiplicar - Vista Plus
Fiduciaria Corficolombiana Fondo Valor Plus
Fiduciaria Corficolombiana S.A
Fiduciaria Colseguros
Fiduciaria Davivienda
Fiduciaria de Occidente S.A.
Fondo De Capital Privado Corredores Capital I
Fondos en Comisionistas de Bolsa
Grupo Nutresa
Helm Fiduciaria S.A.
ICOLCAP
Interconexión Eléctrica ISA
Mineros S.A.
Pacific Rubiales Energy
SURA
$
0
1,179
0
0
27
12
2,446
2,913
1,445
1,384
529
2
0
4,306
0
6
46,816
638,527
157,824
232
1,417
0
1,032
1,921
39,704
0
23
1,581
1,661
12,742
5,080
75,626
22
73
8
158,289
313,052
30,087
80
11
0
0
63,847
0
0
1,563,904
2
1,110
94
23,469
27
12
3,450
3,417
666
1,130
750
0
2
3,843
2
222
48,627
588,631
150,354
222
1,353
1,716
991
2,069
35,356
18,019
15
823
5,047
14,128
688
44,037
22
73
8
12,109
304,059
20,033
0
11
96
6
73,165
169
3
1,360,026
Restriction on investments
As required by law, Sociedad Administradora de Fondos de Pensiones y Cesantías Porvenir maintains a
yield stabilization reserve to ensure compliance with the minimum return on the third-party portfolios
belonging to the City of Manizales, the City of Medellin, and Liqorera de Caldas and Rionegro, as well as
(Continued)
52
for pension and severance funds.
The trading investments in equity securities reported by Fiduciaría Bogotá S.A. and Sociedad
Administradora de Pensiones y Cesantías – Porvenir S.A. at June 30, 2014 ($59,776 and $98,058,
respectively) are part of the stabilization reserve set up to comply with the minimum return stipulated
under Law 1450/2011 and the regulation in Decree 1861/2012, Article 7, with respect to management of
the resources of Fondo de Pensiones de Entidades Territoriales (FONPET).
The yield stabilization reserve is equivalent to 1% of the average monthly value, at market prices, of the
assets constituting the third-party portfolio managed by the consortium known as FONPET 2012, which
includes Sociedad Administradora de Pensiones y Cesantías – Porvenir S.A., with 59% ownership
interest, and Fiduciaria Bogotá, with 41 %.
Given the merger with AFP Horizonte S.A. on December 31, 2013, Porvenir acquired a 71% stake with
Unión Temporal BBVA Horizonte - Trust BBVA Fonpet 2012, constituted with FiduBBVA S.A.
 The Mandatory investments held by Casa de Bolsa on the Colombian stock exchange are pledged, as a
general guarantee, to back all its obligations with Bolsa de Valores de Colombia S.A.
 The other restrictions pertain to investment repurchase rights and to securities pledged as collateral.
The former were pledged to support liquidity operations with counterparts and the latter with the Central
Counterparty Clearing House.
 Leasing Bogotá Panamá had USD 860 in securities available for sale at June 30, 2014. They secure
obligations and repurchase agreements.
Equity securities available for sale
June 30
Capital
stock
Company name
% Held
Adjusted
cost
Equity value
Reappraisal
(depreciation)
Allowance
Rating
High turnover or listed shares
Investments in Colombia
Celsia S.A. ESP.
Ecopetrol
Éxito
Grupo Argos S.A.
Grupo Nutresa S.A.
Investments abroad
Bladex
Latinex Holding Inc
COP
5
0
0
0
0
0
0.63%
0.00%
0.00%
0.00%
0.00%
0.00%
117
61
121
70
76
199
644
117
61
121
70
76
199
644
0
0
0
0
0
0
0
0
0
0
0
0
0
0
A
A
A
A
A
A
USD
847
207
0.01%
1.90%
136
986
1,122
136
986
1,122
0
0
0
0
0
0
A
A
COP
18,673
492,111
3.36%
3.56%
14,445
520,169
534,614
14,445
520,169
534,614
0
0
0
0
0
0
A
A
USD
280
3,941
7
0
257,467
0.01%
0.00%
0.05%
0.05%
2.80%
39
450
7
93
3,315
3,904
115
496
0
0
3,315
3,926
76
46
0
0
0
122
0
0
7
93
0
100
A
A
A
E
A
Medium turnover or listed shares
Empresa de Energia de Bogotá S.A. E.S.P.
Low and minimal turnover or unlisted shares
Investments abroad
Bladex S.A. Class E
Corporación Andina de Fomento
Grupo APC S.A
Petróleos Colombianos Limited
Transgas de Occidente S.A.
(Continued)
53
June 30
Capital
stock
Company name
A Toda Hora S.A.
ACH Colombia S.A
Aerocali S.A.
Agroganadera del Valle S.A. In liquidation
Alimentos Derivados de la Caña (Adecaña)
AV Villas (ordinary shares)
AV Villas (preferred shares)
Banco Commercial AV Villas S.A.
Banco Co patria Red Multibank
Banco de Occidente S.A.
C.I Confections y Textiles In liquidation
CI Ace alma S.A.
Camera de Compensation de Devises de
Colombia S.A.
Camera de compensation de la Bolsa
National Agropecuaria
Cámara de Riesgo Central de Contraparte de
Colombia S.A.
Cci Marketplace S.A.
Centro de Eventos Valle del Pacifico
Centro de Ferias Exposiciones y
Convenciones de Bucaramanga
Club del Comercio Bucaramanga SA
Cifin S.A.
Cfc Sk El Dorado Latam Capital Partner Ltd.
Cfc Sk El Dorado Latam Management
Company Ltd.
Colombiana de Extrusión S.A. Extrucol
Compañía Aguas de Colombia
Concesionaria Ruta Del Sol S.A.S.
Concesionaria Tibitoc S.A.
Cooperativa Serviarroz S.A.
Deposito Central de Valores - Deceveal S.A.
Edubar
Eternit Colombiana S.A.
Fiduciaria de Occidente S. A.
Fondo Ganadero del Tolima S.A.
Gas Natural S.A. ESP
Grupo Argos S.A.
Grupo Nutresa S.A.
Inducarbón
Industria Colombo Andina Inca S.A.
Inmobiliaria Selecta
Inversiones Sides S.A.S.
Jardin Plaza
Metrex S.A.
Petróleos Nacionales S.A.
Pizano Iberica S.L
Proenergia Internacional
Promesa S.A.
Promigas S.A.
Promisan S.A. In liquidation
Promotora de Inversiones Ruitoque
S.A.(Promisión)
Promotora de Zona Internacional del Caribe
Promotora Industrial Comercial y Turistica de
Sevilla S.A.
COP
% Held
Adjusted
cost
Equity value
Reappraisal
(Depreciation)
Allowance
Rating
333
6,595
3,800
500
20,762
22,473
22,473
22,473
233,886
4,677
3
17,005
20.00%
11.91%
49.99%
0.25%
0.32%
0.02%
0.01%
0.00%
0.00%
0.33%
0.00%
11.25%
264
1,139
7,718
26
26
159
60
4
0
20,211
0
3,314
1,366
2,783
13,561
4
293
355
129
23
0
20,414
0
4,031
1,102
1,644
5,843
0
267
196
69
19
0
203
0
717
0
0
0
22
0
0
0
0
0
0
0
0
A
A
A
E
A
A
A
A
A
A
E
A
5,000
6.38%
159
289
130
0
A
27,539
0.06%
9
5
0
A
80,733
2.22%
897
701
5,028
69,034
7.22%
0.93%
363
647
224
656
13,705
2.80%
509
399
3
16,546
0
0.07%
12.38%
50.00%
3
2,076
0
13
3,521
0
(4)
(196)
0
9
(26)
10
1,445
0
0
A
139
0
C
A
84
B
0
0
0
A
A
A
0
50.00%
0
0
0
0
A
2,208
2,800
262,311
29,143
1,335
24,102
2,733
389
16,404
3,782
27,688
40,338
2,301
420
3,339
691
22
50
3,122
339
202
1,329
638
109,884
3,523
20.00%
20.00%
33.00%
33.33%
1.20%
6.62%
0.91%
0.00%
4.44%
0.62%
1.68%
0.00%
0.00%
0.09%
0.67%
3.52%
0.38%
17.76%
10.31%
19.54%
34.40%
0.00%
0.28%
44.79%
0.00%
1,785
1,097
86,563
9,823
32
2,346
158
0
4,026
57
53,481
1
1
1
74
113
73
10,031
168
257
74
0
11
1,605,594
30
7,831
1,315
86,969
16,617
95
3,590
31
1
7,514
101
76,179
6
5
0
274
28
49
15,429
627
0
0
0
3
2,388,617
0
6,046
218
406
6,794
63
1,244
0
1
3,488
44
22,698
5
4
0
200
0
0
5,398
459
0
0
0
(8)
783,023
0
0
0
0
0
0
0
127
0
0
0
0
0
0
1
0
85
24
0
0
257
74
0
0
0
30
A
A
A
A
A
A
E
A
A
A
A
A
A
E
A
E
C
A
A
E
E
A
A
A
E
8,411
3.34%
696
498
0
198
B
9,934
0.05%
5
15
10
0
A
127
0.30%
2
0
0
2
E
Promotora la Alborada S.A.
54,248
1.83%
318
0
0
318
E
Promotora la Enseñanza S.A.
Redeban Multicolor S.A
Reforestadora de Santa Rosalía
Semillas e Insumos Algodoneros
Sociedad Aeroportuaria de La Costa S. A.
Sociedad Hotelera Cien Internacional
S.A.(Hotel Bogotá Royal)
Sociedad Portuaria Regional Buenaventura
Soforestal S.A.
Textiles el Espinal S.A.
Triple A B/Quilla
Ventas y Servicios S.A.
Reappraisal trusts
20
10,119
0
103
3,699
4.27%
2.44%
0.00%
10.78%
11.55%
210
966
12
16
856
0
2,026
0
36
3,038
0
1,060
0
20
2,182
210
0
12
0
0
E
A
E
A
A
Other securities
Bolsa de Valores de Colombia S.A.
Fideicomiso Bolsa de Bogotá
Fogacol
Total
COP
350
0.39%
58
71
13
0
A
87,056
25,549
452
73,445
1,660
0
0.24%
0.00%
8.56%
0.01%
19.90%
0.00%
209
188
2,399
38
2,462
0
1,821,815
424
430
0
19
2,860
12,460
2,675,925
215
242
0
0
398
12,460
858,111
0
0
2,399
19
0
0
4,001
A
A
E
D
A
91
98
341
1.08%
8.70%
3.02%
195
98
341
634
2,362,733
467
0
0
467
3,216,698
272
0
0
272
858,505
0
0
0
0
4,101
A
A
A
(Continued)
54
Capital
stock
Company name
December 31
Equity
value
Adjusted
cost
% Held
Reappraisal
(Depreciation)
Allowance
Rating
High turnover or listed shares
Empresa de Energia de Bogotá
COP
Investments abroad
Bladex
Preferred shares Fannie Mae
Preferred shares Freddie Mac
Preferred shares Barclays
Preferred shares Morgan Stanley
Preferred shares Hsbc Hldgs Plc
Preferred shares General Electric Cap Corp
USD
18,673
492,111
3.36%
3.56%
847
0
0
0
0
0
0
$
14,068
502,176
516,244
14,068
502,176
516,244
0
0
0
0
0
0
A
A
0.02%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
133
675
692
1,470
93
968
1,085
5,116
133
675
692
1,470
93
968
1,085
5,116
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
A
A
A
A
A
A
A
280
3,686
8
339
263,713
0.01%
0.00%
0.05%
0.05%
2.80%
40
461
8
96
3,691
4,296
112
554
8
0
3,691
4,365
72
93
0
0
0
165
0
0
0
96
0
96
A
A
A
E
A
333
6,595
19.99%
11.91%
264
1,138
1,350
2,785
1,086
1,647
0
0
A
A
3,800
500
20,762
22,473
22,473
22,473
233,878
3
15,353
49.99%
0.25%
0.32%
0.02%
1.18%
0.00%
0.00%
0.00%
11.25%
7,718
26
26
159
60
4
0
0
3,127
10,103
4
276
310
116
21
0
0
3,449
2,385
0
250
151
56
17
0
0
322
0
22
0
0
0
0
0
0
0
A
E
A
A
A
A
A
E
A
Low or minimal turnover or unlisted shares
Investments abroad
Bladex S.A. Class E
Corporación Andina de Fomento
GRUPO APC S.A.
Petróleos Colombianos Limited
Transgás de Occidente S.A.
USD
A Toda Hora
A.C.H. Colombia S.A
COP
Aerocali S.A.
Agroganadera del Valle S.A. In liquidation
Alimentos derivados de la Caña
AV Villas (ordinary shares)
AV Villas (preferred shares)
Banco Comercial AV Villas S.A.
Banco Colpatria Red Multibanca
C.I Confecciones y Textiles In liquidation
C.I. Acepalma S.A.
Cámara de Compensación de Divisas de
Colombia S.A.
Camara de Compensacion de la Bolsa
Nacional Agropecuaria
Cámara de Riesgo Central de Contraparte de
Colombia S.A.
Cci Marketplace S.A.
Centro de Eventos Valle del Pacífico
Centro de Ferias, Exposiciones y
Convenciones de B/Manga
Club del Comercio Bucaramanga S.A.
Cifín S.A.
Cfc Sk El Dorado Latam Capital Partner Ltd
Cfc Sk El Dorado Latam Management
Company Ltd
Colombiana de Extrusión S.A. Extrucol
Coltejer
Compañía Aguas de Colombia
Concesionaria Ruta del Sol S.A.S.
Concesionaria Tibitoc S.A.
Cooperativa Serviarroz
Depósito Central de Valores-DECEVAL
Edubar
Eternit Colombiana S.A.
Fiduciaria Occidente S. A.
Fondo Ganadero del Tolima S.A.
Gas Natural ESP
Inducarbón
Industria Colombo Andina-Inca S.A.
Inmobiliaria Selecta
Inversiones Argos
Inversiones Sides S.A.S.
Jardín Plaza
Metrex S.A.
Grupo Nutresa
Petróleos Nacionales S.A.
Pizano Ibérica S.L
Proenergía Internacional S.A.
Profilácticos del Tolima S.A
Promesa S.A.
Promigás S.A.
Promisán S.A. In liquidation
Promotora de Inversiones Ruitoque S. A.
(Promisión)
COP
5,000
6.38%
159
272
113
0
A
27,539
0.06%
10
10
0
0
A
80,733
2.23%
897
672
(225)
0
A
5,028
65,921
7.22%
0.75%
363
497
224
528
0
31
139
0
C
A
13,705
2.80%
509
424
(1)
84
B
3
12,000
0
0.07%
12.38%
50.00%
3
743
0
12
3,379
0
9
2,636
0
0
0
0
A
A
A
0
50.00%
0
0
0
0
A
2,208
0
2,800
262,311
29,143
1,335
24,102
2,733
389
15,736
3,782
27,688
420
3,339
691
40,338
22
50
3,122
2,301
339
202
1,329
294
638
106,339
3,523
20.00%
0.00%
20.00%
33.00%
33.33%
1.20%
6.62%
0.91%
0.00%
4.44%
0.62%
1.68%
0.09%
0.67%
3.52%
0.00%
0.38%
17.76%
10.30%
0.00%
19.54%
34.40%
0.00%
0.17%
0.28%
44.74%
0.00%
1,785
0
1,097
86,562
9,823
31
2,346
158
0
3,411
57
53,480
1
62
113
1
73
10,031
168
1
257
76
0
1
11
1,575,625
30
5,117
0
1,315
91,958
15,413
94
4,380
31
1
5,405
104
74,431
0
246
28
6
49
16,029
742
8
0
0
2
1
4
2,319,520
0
3,332
0
218
5,396
5,590
63
2,034
0
1
1,994
47
20,951
0
184
0
5
0
5,998
574
7
0
0
2
0
(7)
743,895
0
0
0
0
0
0
0
0
127
0
0
0
0
1
0
85
0
24
0
0
0
257
76
0
0
0
0
30
A
A
A
A
A
A
A
E
A
A
A
A
E
A
E
A
C
A
A
A
E
E
A
A
A
A
E
8,411
3.34%
696
498
0
198
B
(Continued)
55
Capital
stock
Company name
Promotora de Zona Internacional del Caribe
Promotora Industrial Comercial y Turística De
Sevilla
Promotora la Alborada S.A.
Promotora la Enseñanza S.A.
Redeban Multicolor S.A.
Reforestadora de Santa Rosalía
Semillas e Insumos Algodoneros
Sociedad Aeroportuaria de la Costa S. A.
Sociedad Hotelera Cien Internacional
S.A.(Hotel Bogotá Royal)
Sociedad Portuaria Regional Buenaventura
Soforestal S.A.
Textiles el Espinal S.A.
Triple A B/Quilla
Ventas y Servicios S. A.
Reappraisal of trusts
Other securities
December 31
Equity
value
Adjusted
cost
% Held
Reappraisal
(Depreciation)
Allowance
Rating
9,934
0.05%
5
15
10
0
A
127
0.03%
2
0
0
2
E
54,248
20
10,119
0
103
3,699
1.83%
4.27%
2.44%
0.00%
10.78%
11.55%
318
210
966
12
16
856
0
0
1,761
0
64
2,601
0
0
795
0
48
1,745
318
210
0
12
0
0
E
E
A
E
A
A
350
0.39%
58
71
13
0
A
87
25,549
452
73,445
1,387
0.24%
0.00%
8.56%
0.01%
19.90%
0.00%
209
188
2,399
38
1,974
0
1,768,850
466
536
0
19
2,434
12,452
2,579,736
257
348
0
0
460
12,452
814,889
0
0
2,399
19
0
0
4,003
A
A
E
D
A
91
98
329
0.49%
8.70%
3.02%
195
98
329
622
2,295,128
538
0
0
538
3,105,999
343
0
0
343
815.397
0
0
0
0
4,099
A
A
A
COP
Bolsa de Valores de Colombia S.A.
Fideicomiso Bolsa de Bogotá
Fogacol
Total
$
Investment Allowances
Investment allowances constituted at June 30, 2014 and December 31, 2013:
June 30
December 31
Debt securities
Held for trading
Available for sale
$
Total
Equity securities
Available for sale
Total
$
60
0
60
267
31
298
4,101
4,101
4,161
4,099
4,099
4,397
June 30
4,397
29
0
(262)
(3)
4,161
December 31
4,506
354
(14)
(449)
0
4,397
Movement in the allowance
Opening balance
$
Allowance charged to operating expenses
Write-offs
Recovery of the allowance for investments (*)
Conversion adjustment
Closing balance
$
(*) Includes recovery of $4.4 and $75 in respective investment allowances at June 30, 2014 and December 31, 2013. These amounts are registered
under “other income” for the purpose of equivalent with the real sector.
(Continued)
56
Investment maturity
June 30
Up to 1
year
Trading investments, debt securities
Held to maturity, debt securities
Available for sale, debt securities
Equity securities
$
$
561,317
1,551,732
793,298
931,458
3,837,805
1 to 3
years
3 to 5
years
Over 5
years
1,199,342
144,578
1,556,912
0
2,900,832
185,865
5,847
2,480,094
0
2,671,806
631,693
4,364
5,217,463
2,995,179
8,848,699
Total
2,578,217
1,706,521
10,047,767
3,926,637
18,259,142
December 31
Up to 1
year
Trading investments, debt securities
Held to maturity, debt securities
Available for sale, debt securities
Equity securities
$
$
660,607
1,397,158
706,903
886,622
3,651,290
1 to 3
years
3 to 5
years
Over 5
years
1,913,577
145,984
1,608,255
0
3,667,816
676,621
6,012
2,709,585
0
3,392,218
979,080
4,513
3,885,025
2,769,515
7,638,133
Total
4,229,885
1,553,667
8,909,768
3,656,137
18,349,457
(7) Loans and financial leases, net
Detail of the loan portfolio, by type:
June 30
Ordinary loans
Loans made with resources of other entities
Non-resource factoring
Letters of credit, hedged
Collateral and guarantees, hedged
Overdrafts, bank current account
Discounts
Credit cards
Reimbursements, in advance
Loans to micro-enterprises and small businesses
Microcredit
Home mortgage loans
Foreign loans, repaid
Leased-out real estate
Leased-out movable assets
Loans to builders
Total Loans, by Type
$
$
43,301,675
1,135,410
145,648
134,734
18
354,007
401,928
5,832,562
99,726
1,193,936
327,920
5,624,614
0
854,064
1,748,143
83,729
61,238,114
December 31
40,696,929
950,657
119,451
120,488
1,372
338,274
398,580
5,756,732
410,761
1,318,220
316,304
5,341,180
168
649,569
1,713,348
20,477
58,152,510
The Bank and its subordinates assessed the entire loan portfolio (100%) at June 30, 2014 and December
31, 2013. The following is the rating based on that assessment.
(Continued)
57
June 30
Commercial
Bank and National
Subordinates
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
$
Less allowance
Foreign Subordinates
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
Less allowance
Consumer
Microcredit
Mortgage
Financial
leases
Total
27,872,464
754,265
509,941
223,808
134,410
29,494,888
(736,953)
28,757,935
6,709,648
147,165
135,959
201,818
56,577
7,251,167
(421,170)
6,829,997
292,764
9,424
5,776
3,911
16,045
327,920
(22,384)
305,536
969,479
1,999
979
197
85
972,739
(10,268)
962,471
2,003,033
111,779
58,701
17,067
3,661
2,194,241
(53,433)
2,140,808
37,847,388
1,024,632
711,356
446,801
210,778
40,240,955
(1,244,208)
38,996,747
8,355,326
284,259
114,287
30,905
33,220
8,817,997
(134,777)
8,683,220
6,392,401
255,711
351,301
97,683
22,225
7,119,321
(230,932)
6,888,389
0
0
0
0
0
0
0
0
4,200,921
137,757
247,580
26,969
38,648
4,651,875
(21,789)
4,630,086
395,945
4,126
6,941
610
344
407,966
(2,724)
405,242
19,344,593
681,853
720,109
156,167
94,437
20,997,159
(390,222)
20,606,937
59,603,684
Total loan portfolio
$
December 31
Commercial
Bank and National
Subordinates
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
Less allowance
Foreign Subordinates
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
Less allowance
Total loan portfolio
$
Consumer
Microcredit
Mortgage
Financial
leases
Total
25,152,026
778,387
478,280
221,407
138,237
26,768,337
(703,249)
26,065,088
6,299,705
121,436
131,996
172,652
63,218
6,789,007
(419,706)
6,369,301
283,888
7,345
4,837
3,287
16,947
316,304
(22,645)
293,659
698,777
1,087
359
116
106
700,445
(7,436)
693,009
1,834,082
77,918
34,301
16,286
4,567
1,967,154
(51,236)
1,915,918
34,268,478
986,173
649,773
413,748
223,075
36,541,247
(1,204,272)
35,336,975
8,871,590
400,203
119,837
18,637
32,087
9,442,354
(149,441)
9,292,913
6,457,823
219,060
334,249
85,259
36,020
7,132,411
(248,895)
6,883,516
0
0
0
0
0
0
0
0
4,205,516
109,993
252,154
21,379
51,693
4,640,735
(32,411)
4,608,324
383,814
5,041
6,383
473
52
395,763
(2,478)
393,285
19,918,743
734,297
712,623
125,748
119,852
21,611,263
(433,225)
21,178,038
56,515,013
$
(Continued)
58
Detail of the loan portfolio, by economic sector:
June 30
Sector
Agriculture, livestock, hunting, forestry and fishing
Capital investor
Wage earners
Mining and quarrying
Manufacturing industries
Supply of electricity, gas, steam & air conditioning
Water distribution; waste water evacuation and treatment, waste
management and environmental sanitation activities
Construction
Wholesale and retail sales; automotive and motorcycle repair
Transport, storage
Accommodations and food services
Information and communications
Financial and insurance activities
Real estate activities
Professional, scientific and technical activities
Administrative services and support activities
Public administration and defense; social security plans with
mandatory affiliation
Ports and railroads
Education
Human health care and social assistance activities
Artistic, entertainment and recreational activities
Other service activities
Activities of individual households as employers
Activities of extraterritorial organizations and entities
Petroleum and derivatives thereof
Second mortgage
Total by economic use
$
$
% Held
December 31
% Held
1,656,958
366,803
18,195,868
1,370,043
8,494,268
2,345,282
2.71%
0.60%
29.71%
2.24%
13.87%
3.83%
1,787,263
349,554
17,642,780
1,339,268
7,733,184
2,388,286
3.07%
0.60%
30.34%
2.30%
13.30%
4.11%
166,168
0.27%
156,538
0.27%
3,884,211
8,915,133
3,192,988
596,956
784,419
3,656,786
1,627,525
2,033,490
768,079
6.34%
14.56%
5.21%
0.97%
1.28%
5.97%
2.66%
3.32%
1.25%
3,537,092
8,803,499
3,146,530
534,910
869,228
2,936,230
1,493,200
1,652,532
654,869
6.08%
15.14%
5.42%
0.92%
1.49%
5.05%
2.57%
2.84%
1.13%
1,000,540
1.63%
926,595
1.59%
9,207
338,365
675,748
207,936
825,277
575
125,471
0
18
61,238,114
0.02%
0.55%
1.10%
0.34%
1.35%
0.00%
0.20%
0.00%
0.00%
100.00%
0
293,612
664,956
154,110
942,246
535
145,469
20
4
58,152,510
0.00%
0.50%
1.14%
0.27%
1.62%
0.00%
0.25%
0.00%
0.00%
100.00%
Detail of the loan portfolio, by rating:
June 30
Principal
Commercial
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
Consumer
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
Interest and
Financial
Component
Other Items (1)
Principal
Allowances
Interest and
Financial
Component
Others
$ 36,227,790
1,038,524
624,228
254,713
167,630
38,312,885
270,309
15,599
11,322
10,223
7,266
314,719
858,998
4,335
1,895
6,027
6,065
877,320
453,702
38,825
72,433
146,176
147,111
858,247
29,303
1,764
5,932
10,286
6,687
53,972
22,466
212
722
5,028
7,231
35,659
13,102,049
402,876
487,260
299,501
78,802
14,370,488
134,444
6,313
7,237
7,732
2,486
158,212
32,292
392
622
1,912
37,061
72,279
230,511
30,378
91,256
219,485
80,472
652,102
5,873
2,010
2,882
6,785
2,490
20,040
1,205
176
535
1,900
38,189
42,005
(Continued)
59
June 30
Principal
Microcredit
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
Mortgages
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
Financial leases
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
General allowance
Total loans, by rating
Interest and
financial
component
Other items (1)
Principal
Allowances
Interest and
financial
component
Others
292,764
9,424
5,776
3,911
16,045
327,920
6,420
227
136
109
493
7,385
753
95
88
73
640
1,649
2,928
301
1,155
1,956
16,044
22,384
249
227
132
109
492
1,209
165
95
88
72
640
1,060
5,170,400
139,756
248,559
27,166
38,733
5,624,614
25,551
1,000
2,842
281
1,016
30,690
657
4
5
4
3
673
13,573
1,076
3,046
5,985
8,377
32,057
71
21
16
1
95
204
9
4
5
4
3
25
2,398,978
115,905
65,642
17,677
4,005
2,602,207
0
$ 61,238,114
11,885
1,040
1,222
720
204
15,071
0
526,077
8,153
131
322
504
990
10,100
0
962,021
32,616
3,328
6,274
10,141
3,798
56,157
13,483
1,634,430
206
49
733
677
204
1,869
0
77,294
135
11
147
500
990
1,783
0
80,532
December 31
Allowances
Principal
Commercial
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
Consumer
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
Microcredit
A – Normal
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
Interest and
financial
component
Other Items (1)
Principal
Interest and
financial
component
Others
$ 34,023,616
1,178,590
598,117
240,044
170,324
36,210,691
244,540
15,747
6,640
10,701
8,475
286,103
727,447
6,199
1,642
4,784
5,950
746,022
432,474
51,052
69,479
135,680
153,396
842,081
22,652
2,458
3,488
10,571
7,644
46,813
5,714
235
809
4,444
6,435
17,637
12,757,528
340,496
466,245
257,911
99,238
13,921,418
132,613
5,431
7,160
7,079
2,856
155,139
56,651
333
594
1,804
35,924
95,306
246,336
29,126
88,569
197,491
107,079
668,601
4,340
1,445
2,733
6,150
2,736
17,404
18,570
149
495
1,796
35,988
56,998
283,888
7,345
4,837
3,287
16,947
316,304
5,871
178
122
82
490
6,743
534
67
65
64
698
1,428
2,839
235
967
1,643
16,961
22,645
197
177
121
82
490
1,067
114
67
65
63
698
1,007
(Continued)
60
December 31
Allowances
Principal
Mortgages
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
Financial leases
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
General allowance
Total loans, by rating
Interest and
financial
component
Other Items (1)
Interest and
financial
component
Principal
Others
4,904,293
111,080
252,513
21,495
51,799
5,341,180
22,327
754
2,700
181
1,316
27,278
421
2
2
2
3
430
10,595
896
2,329
3,442
22,585
39,847
45
13
4
1
97
160
6
2
2
2
3
15
2,217,896
82,959
40,684
16,759
4,619
2,362,917
0
$ 58,152,510
11,892
689
776
564
231
14,152
0
489,415
6,890
152
157
362
925
8,486
0
851,672
33,345
3,006
4,108
8,714
4,541
53,714
10,609
1,637,497
179
39
466
557
231
1,472
0
66,916
106
11
103
361
925
1,506
0
77,163
(1) “Other Items” include payments on behalf of clients, fees, commissions, staff advances and other sundry accounts receivable.
Detail of the loan portfolio, by monetary unit:
June 30
Domestic
currency
Commercial
Consumer
Microcredit
Mortgage loans
Financial leases
Total portfolio
$
$
24,200,418
7,251,167
327,920
972,739
2,162,468
34,914,712
Foreign currency
14,112,467
7,119,321
0
4,651,875
439,739
26,323,402
Total
38,312,885
14,370,488
327,920
5,624,614
2,602,207
61,238,114
December 31
Domestic
currency
Commercial
Consumer
Microcredit
Mortgage loans
Financial leases
Total portfolio
$
$
22,189,668
6,789,007
316,304
700,446
1,931,964
31,927,389
Foreign currency
14,021,023
7,132,411
0
4,640,734
430,953
26,225,121
Total
36,210,691
13,921,418
316,304
5,341,180
2,362,917
58,152,510
(Continued)
61
Detail of the loan portfolio, by maturity:
June 30
Commercial
Consumer
Microcredit
Mortgage loans
Financial leases
$
Total portfolio
$
Up to 1
year
1 to 3
years
3 to 5
years
Over 5
years
Total
18,676,622
6,657,039
144,113
125,866
545,967
26,149,607
8,566,349
3,187,392
156,971
127,780
914,397
12,952,889
4,990,367
1,855,586
26,720
171,747
566,496
7,610,916
6,079,547
2,670,471
116
5,199,221
575,347
14,524,702
38,312,885
14,370,488
327,920
5,624,614
2,602,207
61,238,114
Up to 1
year
1 to 3
years
3 to 5
years
Over 5
years
18,029,417
6,765,045
200,800
118,082
597,500
25,710,844
8,080,915
2,964,392
104,805
99,490
838,852
12,088,454
4,483,945
1,607,868
10,699
151,937
502,336
6,756,785
5,616,414
2,584,113
0
4,971,671
424,229
13,596,427
December 31
Commercial
Consumer
Microcredit
Mortgage loans
Financial leases
$
Total portfolio
$
Total
36,210,691
13,921,418
316,304
5,341,180
2,362,917
58,152,510
At June 30, 2014 and December 31, 2013, Leasing Bogotá Panamá registered USD 464 and USD 467 in
loans, respectively, to guarantee obligations and other borrowing facilities.
Detail of restructurings, agreements and debtor restructuring plans:
Principal
Commercial
Law 116
Law 550
Law 617
Ordinary
Standardized debtor
restructuring plans
Liquidation
Consumer
Law 116
Ordinary
Standardized debtor
restructuring plans
Liquidation
June 30
Allowance
on the
principal
December 31
Guarantee
Principal
Allowance on
the principal
Guarantee
$
318,537
57,916
57,034
584,889
95,802
33,033
468
71,830
126,884
7,793
31,159
291,825
280,189
62,290
65,131
590,418
87,038
34,989
566
65,678
105,917
7,555
35,428
240,604
1,019
64,749
1,084,144
833
50,244
252,210
187
6,400
464,248
1,046
65,319
1,064,393
858
52,416
241,545
188
2,066
391,758
2,936
272,274
2,498
62,654
333
15,321
2,399
256,616
2,068
59,161
382
14,893
49
143
275,402
34
119
65,305
0
0
15,654
58
204
259,277
40
180
61,449
0
0
15,275
(Continued)
62
June 30
Allowance
on the
principal
Principal
Microcredit
Law 116
Ordinary
Standardized debtor
restructuring plans
Mortgage loans
Ordinary
Financial leasing
Law 116
Law 550
Ordinary
Standardized debtor
restructuring plans
Liquidation
Totals
Law 116
Law 550
Law 617
Ordinary
Standardized debtor
restructuring plans
Liquidation
$
December 31
Guarantee
Principal
Allowance on
the principal
Guarantee
96
15,579
5
3,912
0
5,322
97
13,360
5
2,995
0
4,591
6
15,681
0
3,917
3
5,325
7
13,464
0
3,000
4
4,595
37,124
37,124
1,641
1,641
36,947
36,947
29,599
29,599
1,090
1,090
29,572
29,572
27,462
244
29,894
5,352
35
2,411
13,227
0
29,511
17,186
402
37,914
3,099
37
2,177
5,882
0
36,548
151
104
57,855
152
104
8,054
152
0
42,890
152
1,051
56,705
152
1,006
6,471
152
0
42,582
349,031
58,160
57,034
939,760
103,657
33,068
468
142,448
140,444
7,793
31,159
378,926
299,871
62,692
65,131
927,907
92,210
35,026
566
131,101
112,181
7,555
35,428
326,208
1,225
64,996
1,470,206
1,019
50,467
331,127
342
6,400
565,064
1,263
66,574
1,423,438
1,050
53,602
313,555
344
2,066
483,782
Others
Detail of restructurings, agreements and debtor restructuring plans, by rating:
June 30
Risk Category
Commercial
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
Consumer
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
Microcredit
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
Principal
$
Interest
Other items
Principal
Allowances
Interest
224,889
255,660
328,093
139,214
136,288
1,084,144
5,939
5,182
6,391
4,503
6,365
28,380
32
85
175
991
782
2,065
3,690
7,987
39,424
76,980
124,129
252,210
133
1,065
4,073
4,448
5,799
15,518
24
64
153
982
782
2,005
144,195
23,854
55,263
40,331
11,759
275,402
2,151
369
872
843
414
4,649
102
42
172
385
200
901
4,987
4,175
11,195
27,513
17,435
65,305
84
48
336
726
396
1,590
78
35
151
381
200
845
8,809
1,626
1,258
926
3,062
15,681
56
4
12
4
42
118
67
20
20
21
130
258
88
52
252
463
3,062
3,917
27
4
8
4
42
85
59
20
20
21
130
250
(Continued)
63
June 30
Risk Category
Principal
Mortgages
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
Financial leases
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
Totals
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
$
Interest
Other items
Principal
Allowances
Interest
Others
19,715
2,181
10,818
3,005
1,405
37,124
283
30
260
135
64
772
1
0
1
3
1
6
142
37
368
819
275
1,641
1
0
0
0
0
1
0
0
1
3
1
5
8,922
7,929
35,630
4,070
1,304
57,855
41
130
804
183
96
1,254
5
8
140
61
240
454
294
261
3,454
2,759
1,286
8,054
2
5
636
173
96
912
0
1
103
60
240
404
406,530
291,250
431,062
187,546
153,818
1,470,206
8,470
5,715
8,339
5,668
6,981
35,173
207
155
508
1,461
1,353
3,684
9,201
12,512
54,693
108,534
146,187
331,127
247
1,122
5,053
5,351
6,333
18,106
161
120
428
1,447
1,353
3,509
December 31
Risk Category
Principal
Interest
Other items
Principal
Allowances
Interest
Others
Commercial
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
$
230,510
278,013
309,598
102,621
143,651
1,064,393
4,851
7,203
2,789
3,168
7,135
25,146
27
89
196
877
851
2,040
5,471
9,624
38,941
60,150
127,359
241,545
63
1,750
1,916
3,057
6,391
13,177
16
66
181
874
851
1,988
135,002
23,786
56,907
32,490
11,092
259,277
2,024
432
1,029
845
401
4,731
106
43
177
310
202
838
5,297
4,304
12,089
22,942
16,817
61,449
107
72
426
742
383
1,730
77
32
133
308
202
752
8,268
1,209
1,015
591
2,381
13,464
47
8
6
7
36
104
49
14
15
12
103
193
83
38
203
295
2,381
3,000
22
8
6
7
36
79
41
14
15
12
103
185
15,269
3,770
8,143
1,634
783
29,599
128
90
140
26
71
455
0
0
1
1
1
3
282
58
249
332
169
1,090
0
0
0
0
0
0
0
0
1
1
1
3
Consumer
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
Microcredit
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
Mortgages
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
(Continued)
64
December 31
Risk Category
Principal
Interest
Other items
Principal
Allowances
Interest
Others
Financial leases
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
14,646
16,300
21,488
2,121
2,150
56,705
87
141
422
115
152
917
13
8
60
26
248
355
435
639
2,158
1,098
2,141
6,471
3
7
307
115
152
584
0
1
59
25
248
333
403,695
323,078
397,151
139,457
160,057
1,423,438
7,137
7,874
4,386
4,161
7,795
31,353
195
154
449
1,226
1,405
3,429
11,568
14,663
53,640
84,817
148,867
313,555
195
1,837
2,655
3,921
6,962
15,570
134
113
389
1,220
1,405
3,261
Totals
A – Normal
B – Acceptable
C – Appreciable
D – Significant
E - Uncollectible
$
Loans purchased and sold
Detail of loans purchased and sold (cash and binding):
June 30
Purchases
Acerías Paz del Río S.A.
Banco Agrario de Colombia
Banco AV Villas
Banco BBVA
Banco Caja Social
Banco Colpatria
Banco de Bogotá New York Agency
Banco de Bogotá S.A. – Panama
Banco Corbanca
Banco Davivienda
Banco Helm Bank
Bancolombia
Banco Bancoomeva
Brand Solutions Ltda.
C. I. Denim Factory
C.I Color Siete S.A.S.
Camilo Andres Orozco
Canal Digital
Carvajal Pulpa y Papel
Cemex Colombia S.A.
Cemex Soluciones
Centrogal
Cesal SAS
Concrelec Ltda.
Consulcons Ltda.
Cooperativa Financiera Confiar
Dupon de Colombia
Diaco S.A.
Elimarc
Ferraceros
Finesa S.A.
Geoespectro
Gildardo de Jesus Vargas
$
8,756
34
0
6,602
4,659
6,754
119,591
0
942
8,622
340
23,086
4,418
0
2,064
81
0
640
2,004
0
39,898
262
0
0
0
99
1,223
5,246
58,500
111
82,806
0
0
December 31
10,095
0
158
39,084
16,148
24,946
122,493
20,200
3,528
24,736
462
71,898
10,328
1,481
1,560
40
50
222
2,389
26,696
48,098
210
700
1,806
108
535
1,222
8,064
0
59
82,080
726
277
(Continued)
65
June 30
December 31
Purchases
Hector Tiberio Valencia
Icollantas
Inoxideas
Jose Henry Castro Cerquera
Kaeser Compresores de Colombia
Kellogs
Logistica Sanchez Polo
Machado & Molina
Metrokia
Minas Paz del Río S.A.
Pabsa
Perazza S.A.S.
Precisagro S.A.S.
Productos Quimicos Andinos PQA
Propilco
Quimicos OMA
Serprocons Ltda.
Servivalores (1)
Sofasa
Sigma Petroleum Company S.A.S.
Synthes
Vidrio Andino Colombia
Zapatos y Diseños S.A.
Total Purchases
0
143
287
63
0
169
0
0
936
18,851
424
0
1,596
245
317
0
0
0
12,885
0
0
800
96
413,550
130
562
0
99
408
3,234
472
56
4,621
16,179
1,121
442
1,083
1,582
582
1,275
2,466
68,980
16,026
10
300
0
171
640,198
Sales
Banco de Bogotá Miami Agency
Banco de Bogotá New York Agency
Banco de Bogotá S.A. - Panamá
Banco de Bogotá S.A. - Colombia
Refinancia (2)
Total sales
14,109
31,236
19,913
24,071
0
89,329
0
133,655
20,396
0
172,349
326,400
$
(1) Leasing Bogotá Panama acquired a credit card portfolio in Costa Rica during 2013. The transaction, agreed at $ 36 payable in cash, generated $7
in additional paid-in capital associated with the respective credit card relationships. This amount will be amortized over a period of five (5) years,
(2) Portfolio write-offs: Refinance acknowledged 4.43% of the value of its obligations to the Bank.
Loans write-offs
Details of loans written-off:
Principal
Commercial
Consumer
Microcredit
Mortgage
Financial leases
Total
$
$
59,642
306,221
14,089
9,138
1,566
390,656
June 30
Interest
5,341
13,847
1,598
0
115
20,901
Total
Principal
64,983
320,068
15,687
9,138
1,681
411,557
22,452
254,403
7,824
(153)
57
284,583
December 31
Interest
2,941
12,915
1,109
0
40
17,005
Total
25,393
267,318
8,933
(153)
97
301,588
(Continued)
66
Loan portfolio allowance
Movement in the loan allowance, by type:
Balance at June 30, 2013
Expensed allowance
Increase from additions or mergers (1)
Write-offs charged to the allowance
Recovered allowances
Exchange adjustment
Balance at December 31, 2013
Expensed allowance
Write-offs charged to the allowance
Recovered allowances
Exchange adjustment
(1)
$
$
Commercial
Consumer
Microcredit
Mortgages
734,779
251,911
60,829
(22,452)
(184,040)
1,063
842,090
257,777
(59,642)
(178,466)
(3,512)
858,247
572,619
431,647
42,053
(254,403)
(123,357)
42
668,601
456,740
(306,221)
(158,183)
(8,835)
652,102
20,168
17,079
0
(7,824)
(6,778)
0
22,645
19,462
(14,089)
(5,634)
0
22,384
19,283
3,730
17,089
153
(749)
341
39,847
7,694
(9,138)
(5,669)
(677)
32,057
Financial
leases
48,274
16,469
141
(57)
(11,115)
(7)
53,705
19,516
(1,566)
(15,411)
(87)
56,157
General
allowance
6,465
5,231
0
0
(1,087)
0
10,609
4,983
0
(2,098)
(11)
13,483
Total
1,401,588
726,067
120,112
(284,583)
(327,126)
1,439
1,637,497
766,172
(390,656)
(365,461)
(13,122)
1,634,430
Acquisition value pertaining to the purchase of Grupo Transformador, including Trascom and BBVA Panama.
(8) Customers´ acceptances and derivatives
Detail of acceptances, spot transactions and financial derivatives:
June 30
Assets
Banker’s acceptances
Current banker’s acceptances
Non-current banker’s acceptances
Spot transactions
Foreign exchange sale rights
Securities sale rights
Foreign exchange purchase rights
Securities purchase rights
Foreign exchange sale obligations
Securities sale obligations
Foreign exchange purchase obligations
Securities purchase obligations
Speculative forwards
Other rights
Other obligations
Forward contracts - Hedging
$
December 31
Liabilities
Net
Assets
Liabilities
Net
138,435
232,494
(94,059)
189,131
190,136
(1,005)
6,716
6,716
0
6,795
6,795
0
18,167
21,276
54,531
56,825
(18,177)
(21,262)
(54,532)
(56,830)
(2)
0
0
0
0
0
0
0
0
0
18,167
21,276
54,531
56,825
(18,177)
(21,262)
(54,532)
(56,830)
(2)
10,121
98,376
37,710
0
(10,110)
(98,294)
(37,710)
0
93
0
0
0
0
0
0
0
0
0
10,121
98,376
37,710
0
(10,110)
(98,294)
(37,710)
0
93
6,153,844
874,686
(5,990,736)
(868,754)
186,170
34,707
(34,613)
0
0
(185,216)
170,088
(894,979)
(5,017,806)
920,749
5,159,760
(1,379,429)
(34,148)
34,200
(7,583)
8,210
1,381,549
170,523
7,048,823
5,892,492
(6,911,485)
(6,028,514)
1,565,599
68,855
(68,813)
7,583
(8,210)
(1,566,765)
(435)
7,114,120
2,120,038
(7,078,283)
(2,063,491)
750,213
28,392
(28,330)
2,183
(2,115)
(749,236)
93,491
(2,226,175)
(5,232,375)
2,267,277
5,269,321
(226,442)
(53,044)
53,094
0
0
227,690
79,346
9,340,295
7,352,413
(9,345,560)
(7,332,812)
976,655
81,436
(81,424)
2,183
(2,115)
(976,926)
14,145
3,601,069
0
203,986
(3,454,639)
0
(203,538)
146,878
(18,709)
(341,442)
(1,237,568)
18,804
343,262
1,246,707
11,054
3,619,778
341,442
1,441,554
(3,473,443)
(343,262)
(1,450,245)
135,824
1,361,748
171,478
273,976
(1,346,938)
(170,734)
(272,850)
16,680
(1,911,299)
(1,172,444)
(1,128,069)
1,943,315
1,181,439
1,134,798
47,740
3,273,047
1,343,922
1,402,045
(3,290,253)
(1,352,173)
(1,407,648)
(31,060)
(Continued)
67
Assets
June 30
Liabilities
Net
Assets
December 31
Liabilities
Net
Futures contracts
Currency sale rights
Currency purchase rights
Currency purchase rights
Currency sale obligations
Currency purchase obligations
1,097,218
1,311,426
15,463
(1,097,218)
(1,311,426)
(15,463)
0
0
(771,988)
0
0
771,988
0
0
1,097,218
2,083,414
15,463
(1,097,218)
(2,083,414)
(15,463)
0
1,035,631
1,599,456
23,007
(1,035,631)
(1,599,456)
(23,007)
0
(21,777)
(31,066)
(679)
21,777
31,066
679
0
1,057,408
1,630,522
23,686
(1,057,408)
(1,630,522)
(23,686)
0
700,879
325,227
0
(675,435)
(307,568)
0
43,103
(484,154)
(85,734)
0
501,186
106,981
0
38,279
1,185,033
410,961
0
(1,176,621)
(414,549)
0
4,824
629.577
128,674
0
(603,666)
(106,337)
0
48,248
(695,848)
(252,448)
(314)
726,673
282,449
330
60,842
1,325,425
381,122
314
(1,330,339)
(388,786)
(330)
(12,594)
2,831
13,160
15,991
521,209
1,681
26,263
27,944
487,010
1,150
(13,103)
(11,953)
34,199
10,239
3,069
13,308
367,746
5,080
19,359
24,439
409,298
5,159
(16,290)
(11,131)
(41,552)
Swaps
Interest rate rights
Rights- others
Foreign exchange obligations
Interest rate obligations
Obligations – others
Options
Foreign exchange call options
Foreign exchange put options
$
(9) Accounts receivable, net
Detail of interest and other accounts receivable:
June 30
Interest
Loan portfolio
Financial component
Interbank funds sold and repos
$
Commissions and fees
Payment on behalf of clients
Sundry accounts receivable (1)
Dividends and shares
Storage services
Sale of goods and services
Rental own property
Commercial operating lease income
Promissory notes from sellers
Prepayments to contractors and suppliers
Allowance
$
December 31
511,198
14,880
1,521
527,599
475,278
14,137
6,050
495,465
69,319
77,204
815,498
962,021
59,523
75,705
716,444
851,672
33,072
21,162
246,967
338
225
35,446
577,889
915,099
(157,826)
2,246,893
55,318
24,130
230,984
697
208
34,529
638,446
984,312
(144,079)
2,187,370
June 30
December 31
(1) Detail other accounts receivable:
Staff advances personal
Banco República - Citibank NewYork (penalty)
Benefits, allowances and retroactives
Checks in transit – received agreements
Businesses affiliated through TH purchases
Credit card vouchers in clearing
Contractor chargeable to Panamericana third-party portfolio
$
2,208
2,645
12,932
117
1,763
12,684
35,249
2,122
2,645
2,125
162
12,988
14,778
35,102
(Continued)
68
June 30
Securities commission and management contracts
Accounts receivable in foreign currency
Accounts receivable, tax withholding on trusts
Accounts receivable from employees
Forward compliance
Trusteeships
Compensation public utilities ATMs
Cash shortfalls
Clearing shortfalls
Shortfalls ATM cash withdrawals and advances
Voluntary pension fund
Uncollectibles – undefined responsibility
Sales tax payable – debit
Savings account shortfall
Credit and debit card exchange
Own-originated leasing operations
Items receivable among different hotel units
Claim pending with Interbolsa
Insurance company claims
Electronic transactions in process
Greater value income tax paid
Transfers to the Nat. Treasury
Negative units – AFP settlements
Sundries
Total other accounts receivable
$
December 31
932
3,482
7,371
2,595
387,166
431
426
903
876
1,475
788
1,010
38,456
15,965
60,522
926
28,197
795
12,450
5,721
63,966
27,269
11,138
75,040
815,498
1,493
4,318
13,784
2,486
335,947
6,454
117
3,070
250
1,813
327
0
41,808
15,208
79,334
0
15,920
1,191
10,202
2,205
0
26,779
9,075
74,741
716,444
Movement in the allowance for accounts receivable:
$
Allowance charged to oper. expenses (2)
Increase from additions or mergers
Write-offs
Condoned
Recoveries (1)
Exchange adjustment
$
Allowance charged to oper.expenses (2)
Write-offs
Condoned
Recoveries (1)
Exchange adjustment
$
Commercial
Consumer
77,311
24,921
782
(4,981)
(3,021)
(14,234)
(5)
80,773
29,939
(6,255)
(2,549)
(11,585)
(187)
90,136
58,305
27,635
0
(12,915)
(1,516)
(11,958)
0
59,551
29,832
(13,847)
(1,604)
(10,514)
0
63,418
Microcredit
1,705
2,099
0
(1,109)
(113)
(507)
0
2,075
2,530
(1,598)
(138)
(600)
0
2,269
Mortgage
156
81
0
0
(31)
(32)
0
174
103
0
(7)
(39)
(2)
229
Financial
Leases
1,219
727
0
(40)
0
(400)
0
1,506
714
(115)
0
(331)
0
1,774
Total
138,696
55,463
782
(19,045)
(4,681)
(27,131)
(5)
144,079
63,118
(21,815)
(4,298)
(23,069)
(189)
157,826
1) Includes recovery of allowances for accounts receivable from the real sector; specifically, Corficolombiana , with $141 and $2,078 registered
under “other sundry items” at June 30, 2014 and December 31, 2013, respectively, and an effect of $49 for December 2013 pertaining to the
AFP Horizonte merger with Porvenir.
2) Includes reclassifications at December 31, 2013 for AFP Horizonte Pensiones y Cesantías S.A. in the merger process with Porvenir ($557).
(Continued)
69
(10) Salable, foreclosed and returned assets and those not used for the corporate business social
Detail:
June 30
December 31
Allowance
%
Allow..
Depreciation
2,258
43,168
294
74,461
30,470
3,083
11,880
3,072
168,686
(13)
(1,864)
0
(281)
(242)
(9)
(37)
0
(2,446)
1%
4%
0%
0%
1%
0%
0%
0%
1%
0
0
0
0
0
0
0
0
0
2,245
41,304
294
74,180
30,228
3,074
11,843
3,072
166,240
Assets returned from leasing contracts
Machinery and equipment
1,214
Vehicles
1,859
Real estate
1,583
4,656
(931)
(759)
(498)
(2,188)
77%
41%
31%
47%
0
0
0
0
Assets not used for the corporate business
Land
3,331
Buildings
3,651
6,982
(1,239)
0
(1,239)
37%
0%
18%
(12,369)
(21,819)
(71,197)
(105,385)
(111,258)
40%
71%
62%
60%
31%
Cost
Salable assets
Land
Materials
Ongoing constructions
Products in process
Finished goods
Merchandise in transit
Merchandise
Livestock inventory
$
Foreclosed assets
Movable assets
Real estate for housing
Non-residential real estate
Total
$
30,669
30,897
115,123
176,689
357,013
Allowance
%
Allow.
Depreciation
2,259
38,744
294
71,168
29,432
3,678
12,594
3,352
161,521
(13)
(2,123)
0
(762)
(276)
(38)
0
0
(3,212)
1%
5%
0%
1%
1%
1%
0%
0%
2%
0
0
0
0
0
0
0
0
0
2,246
36,621
294
70,406
29,156
3,640
12,594
3,352
158,309
283
1,100
1,085
2,468
1,141
1,278
1,054
3,473
(863)
(561)
(163)
(1,587)
76%
44%
15%
46%
0
0
0
0
278
717
891
1,886
0
(26)
(26)
2,092
3,625
5,717
3,383
3,526
6,909
(1,239)
0
(1,239)
37%
0%
18%
0
(26)
(26)
2,144
3,500
5,644
0
0
0
0
(26)
18,300
9,078
43,926
71,304
245,729
23,994
35,761
112,051
171,806
343,709
(11,480)
(23,824)
(67,740)
(103,044)
(109,082)
48%
67%
66%
60%
32%
0
0
0
0
(26)
12,514
11,937
44,311
68,762
234,601
Net
Cost
$
$
Net
The Bank’s share of the total account at June 30, 2014 and December 31, 2013 was seven percent (7%)
and eight percent (8%), in that order.
The Bank and its subsidiaries have appraised all foreclosed and returned assets, and those appraisals are
no more than three (3) years old. These assets are received based on a technically determined
commercial appraisal, which is updated every three (3) years or when prices change due to the effect of
the market
Appraisals of the assets received through acquisitions will be updated in 2014.
The following is the movement in the allowance for foreclosed and returned assets, and those not used in
the corporate business:
Salable
Assets
Addition through acquisitions or mergers
Expensed allowance (*)
Write-offs
Allowance used in sales
Recoveries (**)
Exchange adjustment
$
1,994
0
1,652
(413)
0
(21)
0
Foreclosed and
Returned Assets
83,324
20,520
10,106
(526)
(5,983)
(3,604)
794
Assets Not Used in
the Corporate
Business
Total
1,279
0
0
0
0
(40)
0
86,597
20,520
11,758
(939)
(5,983)
(3,665)
794
(Continued)
70
Salable
Assets
Expensed allowance (*)
Write-offs
Allowance used in sales
Recoveries (**)
Exchange adjustment
$
Foreclosed and
Returned Assets
3,212
239
(966)
0
(39)
0
2,446
Assets Not Used in
the Corporate
Business
104,631
11,704
488
(4,319)
(3,382)
(1,549)
107,573
Total
1,239
0
0
0
0
0
1,239
109,082
11,943
(478)
(4,319)
(3,421)
(1,549)
111,258
(*) Includes $54 and $656 in real-sector production costs at June 30, 2014 and December 31, 2013.
(**) Companies in the real sector equate all recoveries under “Other recoveries - 422595 ; $39 and $21 are included at June 30,
2014 and December 31, 2013, in that order.
(11) Property and equipment and assets leased out under operating agreements
Detail of property and equipment:
Cost
Land
Buildings
Office equipment, furniture and fixtures
Computer equipment
Vehicles
Moving equipment and machinery
Silos
Warehouses
Livestock
Rural assets
Imports in transit
$
Deferred depreciation
Assets leased out under operating agreements
Total
$
$
159,813
92,001
673,099
492,611
552,901
84,668
339,842
821
30,575
452
199,247
13,184
2,639,214
0
2,639,214
44,399
2,683,613
Cost
Land
Buildings
Office equipment, furniture and fixtures
Computer equipment
Vehicles
Silos
Warehouses
Livestock
Rural assets
Imports in transit
$
168,897
66,745
692,018
497,941
554,548
76,635
334,122
821
30,575
487
185,749
4.801
2,613,339
June 30
Accumulated
Allowance
depreciation
0
0
0
0
(241,332)
(17,646)
(278,879)
0
(335,265)
0
(41,159)
0
(178,571)
0
(785)
0
(16,781)
0
0
0
(3)
0
0
0
(1,092,775)
(17,646)
3,146
0
(1,089,629)
(17,646)
(6,504)
(384)
(1,096,133)
(18,030)
December 31
Accumulated
Allowance
depreciation
0
0
0
0
(248,131)
(15,266)
(286,988)
0
(342,236)
0
(39,242)
0
(174,090)
0
(779)
0
(16,168)
0
0
0
(3)
0
0
0
(1,107,637)
(15,266)
Net
159,813
92,001
414,121
213,732
217,636
43,509
161,271
36
13,794
452
199,244
13,184
1,528,793
3,146
1,531,939
37,511
1,569,450
Net
168,897
66,745
428,621
210,953
212,312
37,393
160,032
42
14,407
487
185,746
4.801
1,490,436
(Continued)
71
Cost
Deferred depreciation
Assets leased out under operating agreements
Total
$
0
2,613,339
35,676
2,649,015
December 31
Accumulated
Allowance
Depreciation
2,954
0
(1,104,683)
(15,266)
(3,527)
(300)
(1,108,210)
(15,566)
Net
2,954
1,493,390
31,849
1,525,239
There were insurance policies at June 30, 2014 and December 31, 2013 to cover risk of theft, fire,
earthquake, violent protest, riot, explosion, volcanic eruption, power failure, loss or damage to real estate,
offices and vehicles. There are no mortgages or reservations of title on these assets, nor have they been
pledged as mortgage collateral.
Total depreciation for own-use property charged to earnings in the six months ended June 30, 2014 and
December 31, 2013 came to $84,271 and $77,381 respectively. Depreciation of leased-out assets was
$3,369 and $2,125, in that order.
Real estate valuation is supported by appraisals done in 2013, 2012 and 2011.
Movement in property, equipment and assets leased out under operating agreements
Balance at
June 30
Exchange
difference
Additions
Withdrawals
Reclassifications
Balance at
December
31
159,813
92,001
673,099
492,611
552,901
84,668
339,842
821
30,575
13,184
452
(1,842)
(73)
(5,622)
4,466
4,274
1,212
(754)
0
0
(116)
0
7,465
44,456
26,997
39,453
51,732
13,076
14,437
0
0
22,893
0
12,362
11,797
34,838
20,561
22,267
2,429
11,549
0
0
14,518
35
(2,345)
(7,330)
(5,456)
(28,688)
(35,386)
(3,826)
3,586
0
0
124
0
168,897
66,745
692,018
497,941
554,548
76,635
334,122
821
30,575
4,801
487
44,399
199,247
$ 2,683,613
1
43,341
44,887
10,329
14,875
245,713
1,607
48,001
179,964
0
3,283
(76,038)
35,676
185,749
2,649,015
assets
Land
Ongoing construction
Buildings
Furniture and fixtures
Computer equipment
Vehicles
Silos
Warehouses
Imports in progress
Livestock
Assets leased out under operating
agreements
Rural assets
Total Assets
$
Movement in the allowance for property and equipment:
June 30
Opening balance
Expensed allowance (1)
Increase from additions and mergers
Recoveries (2)
Exchange adjustment
Closing balance
$
$
15,566
2,866
0
(61)
(341)
18,030
December 31
6,723
2,461
6,690
(310)
2
15,566
(Continued)
72
1) Includes $125 and $167 in allowances charged to operating lease expenses at June 30, 2014 and December 31, 2013,
respectively.
2) Includes $42 and $17 in respective recoveries on leasing operations at June 30, 2014 and December 31, 2013. Does not include
$187 from Corficolombiana and $167 from BAC Credomatic at December 31, 2013.
(12) Other assets, net
Prepaid expenses and deferred charges
Balance and movement in prepaid expenses and deferred charges during the period ended June 30, 2014
and December 31, 2013:
Balance at
June 30
Prepaid expenses
Interest
Insurance
Rent
Equipment maintenance
Cost of work pending billing
Fees
Licenses and permits
Services
Software & hardware updating & maintenance
Premium on tax stability contract (1)
Others
$
Deferred charges
Organizational and pre-operative
charges
Remodeling
Studies and projects
Computer software
Stationary and office supplies
Improvements to property taken on lease
Discount on sale of bonds
Deferred income tax “debit” (2)
Publicity and advertising
Taxes (3)
Contributions and memberships
Loss from reappraisal adjustment on fixed- income
securities
Surplus investment cost over book value (4)
Commission and fees paid for issues and
acquisitions
Construction projects – concessions
Other deferred charges (6)
$
8,099
16,979
2,806
965
497
91
851
736
1,298
4,848
894
38,064
Balance at
December
31
Exchange
difference
Charges
(26)
(245)
(68)
(1)
0
0
0
0
0
0
(1)
(341)
147
10,648
2,260
482
145
116
86
933
1,816
5,175
2,285
24,093
3,745
8,555
589
735
0
173
10
473
2,454
327
1,893
18,954
11,723
15,131
1,203
1,219
352
148
775
276
1,936
0
503
33,266
Amortization
7,414
0
448
1,646
8,612
4,587
110,428
92,760
38,358
81,966
6,266
107,821
3,135
61,406
3,478
(31)
0
(1,574)
(922)
(1,138)
0
(1,758)
(127)
(177)
(135)
1,250
546
24,019
6,477
5,016
1,265
74,390
3,284
14,945
8,502
2,660
5,881
18,934
3,539
7,387
2,663
81,913
110
70,534
5,132
6,028
115,763
89,249
36,342
85,475
7,664
117,102
88
117,172
243
0
0
0
460
460
79,250
0
0
12,496
91,746
6,004
0
1,606
4,232
8,630
1,480,314
55,476
2,059,413
2,097,477
0
(920)
(6,782)
(7,123)
279,352
24,975
458,571
482,664
114,748
15,880
427,465
446,419
1,315,710
47,301
2,035,089
2,068,355
(1) Coviandes legal stability premium on contract EJ 002/ 2013; amortized during its lifetime. The starting
date is May 1, 2014 and the final date is December 5, 2016.
(Continued)
73
(2) Detail of deferred tax debit/credit at June 30,2014 and December 31, 2013:
June 30
Deferred tax asset:
Fixed assets
Reappraisal of forwards, futures, swaps and options
Deferred charges
Industry and commerce tax
Tax loses and surplus net income over ordinary income to offset
Estimated liabilities
Employee benefits
Others
Deferred tax asset
$
Deferred tax liability:
Fixed assets
Costs and fees originating with loans
Valuation forwards, futures, swaps and options
Deferred charges
Retirement pension reserve
Others
Total deferred tax liability
Deferred tax, net
$
December 31
9,648
11,132
4,065
7,783
49,631
8,046
1,143
371
16,002
107,821
7,943
14,400
4,348
7,288
55,070
8,950
728
342
18,033
117,102
15,574
28,637
11,846
61,864
32,418
4,872
25,161
180,372
11,649
28,145
5,062
113,775
34,061
4,872
20,085
217,649
(72,551)
(100,547)
(3) Contains the value of the equity tax applicable to the Bank and its subordinates. The following is a
breakdown of amortization of the equity tax and the surcharge at June 30, 2014 and December 31,
2013.
June 30
Equity tax declared
Amount amortized
Unamortized balance
$
$
481,487
(428,267)
53,220
December 31
481,487
(371,558)
109,929
(4) With the acquisition of AFP Horizonte Pensiones y Cesantías S.A., Banco de Bogotá generated a
surplus investment cost over book value at March 2013, which was reclassified as goodwill in January
2014.
(5) Pertains mainly to costs generated by the subordinates for items such as licenses, maintenance,
remodeling and refurbishing, as well as yield on trust operations by the real-sector subsidiaries of
Corficolombiana.
(Continued)
74
Other assets – Others
Detail of other assets – others:
June 30
Permanent contributions
Trust rights (1)
Staff loans (2)
Deferred payment letters of credit
Deferred monetary correction
Deposits: guarantee and legal
Tax withholding
Artistic and cultural works
Real estate
Movable assets
Accumulated amortization of movable assets
Furniture and fixtures in storage
Unconfirmed remittances in transit
Petty cash
Prepaid income tax
Prepaid industry and commerce tax
Share of Fonpet consortium profit
Consortia or temporary joint ventures (3)
Surplus prepayments and withholding
Sales tax paid
Others
(1)
$
$
December 31
84,815
350,098
65,430
8,102
5,849
119,950
210,620
6,980
1,310
(485)
0
231
331
164,594
7,334
79
10,802
60,889
15,431
28,569
1,140,929
84,155
319,750
69,261
4,812
6,085
91,641
23,466
7,076
1,310
(325)
602
14
254
48,969
1,509
779
8,291
61,302
15,383
26,544
770,878
Trust rights:
Detail of trust rights, per consolidated organization:
June 30
Banco de Bogotá S. A.:
Non-performing assets Megabanco
Foreclosed assets. San Jerónimo del
Yuste
Proyecto Avenida Colombia Cali
$
December 31
Balance
Reappraisal
Allowance
Balance
Reappraisal
Allowance
0
700
0
0
1,657
0
2,702
33,197
35,899
0
1,648
2,348
2,270
0
2,270
2,702
23,611
26,313
0
1,821
3,478
2,270
0
2,270
23,413
22,698
111,549
32,934
122,137
1,347
314,078
9,902
330
4,284
0
3,666
2,286
20,468
0
0
2,049
0
0
0
2,049
23,391
22,865
103,241
32,934
109,429
1,347
293,207
9,894
331,920
4,309
0
27,040
0
373,163
6,987
18,427
7,680
0
0
0
33,094
86
35
121
350,098
0
0
0
22,816
0
0
0
4,319
195
35
230
319,750
0
0
0
376,641
0
0
0
35,364
Corporación Financiera Colombiana S.A
Investments
Salable and foreclosed assets
Administrative trusts
Real estate trusts
Third-party portfolios
Others
Almaviva S.A.:
Porvenir S.A.
Escrow contracts
$
(Continued)
75
The amounts for trust right allowances and reappraisals were adjusted in line with the information certified
by each of the fiduciaries. It is their responsibility to apply accounting policies and to prepare the financial
statements for the trusts, pursuant to the accounting principles generally accepted in Colombia and the
instructions of the Colombian Superintendency of Finance.
(2)
Staff loans:
The Bank and its subordinates assessed one hundred percent (100.0%) of the staff loans. The following is
the result of that rating at June 30, 2014 and December 31, 2013:
Rating
A
B
C
D
E
Consumer
$
$
(3)
16,863
156
91
23
6
17,139
June 30
Mortgage
Total
48,291
0
0
0
0
48,291
Allowance
Consumer
855
8
4
7
3
877
18,367
0
0
7
6
18,380
65,154
156
91
23
6
65,430
December 31
Mortgage
Total
50,881
0
0
0
0
50,881
Allowance
69,248
0
0
7
6
69,261
913
0
0
5
16
934
Consortia or temporary joint ventures
Detail of subordinates’ active consortia:
June 30
Sociedad Administradora de Fondos de Pensiones y Cesantías Porvenir S.A
Corporación Financiera Colombiana S.A.
$
$
7,060
3,004
738
10,802
December 31
7,018
679
594
8,291
Allowances for other assets
Detail of allowance for other assets at June 30, 2014 and December 31, 2013:
June 30
Staff loans
Artistic and cultural works
Other allowances
Permanent contributions
$
$
877
322
32,979
41
32,219
December 31
934
322
32,088
42
33,386
Movement in the allowance for other assets
Detail of movement in the allowance for other assets:
June 30
Opening balance for the period
Allowance charged to expenses for the period
Recovery of allowance (1)
Other assets written off
Closing balance for the period
$
$
33,386
454
(1,503)
(118)
32,219
December 31
32,305
2,608
(1,490)
(37)
33,386
(1) Includes $139 and $6 at June 30, 2014 and December 31, 2013 in recovery of other allowances charged to Corporación Financiera
Colombiana S.A.
(Continued)
76
Goodwill
Detail of amortized goodwill:
Megabanco
AFP Horizonte BdB
Corficolombiana
BAC Credomatic
Balance at
June 30,
2014
$
453,898
88,998
129,614
1,827,093
Diff.
exchange
effect
0
0
0
(45,614)
427,057
80,155
Grupo Reformador
Transcom Ltd
Banco BAC
Panamá
AFP Horizonte
$
Increase
from
shares
0
91,746
0
16,074
12,007
2,748
2,306
31,583
Balance at
December
31, 2013
465,905
0
131,920
1,888,216
(10,389)
(1,931)
5,826
203
5,498
1,044
437,118
82,927
596,019
341,500
(14,451)
0
5,935
0
7,762
4,434
3,944,334
(72,385)
119.784
67,382
Amortization
(*)
Diff.
exchange
effect
0
0
0
(4,266)
Increase
from
shares
Amortization
Balance at
June 30,
2013
477,867
0
0
0
0
11,962
0
1,989
27,093
0
0
437,118
82,927
0
0
0
0
612,297
345,934
0
0
612,297
0
0
4,384
0
350,318
3,964,317
(4,266)
1,132,342
45,428
2,881,669
133,909
1,919,575
(*) Includes $1,584 in amortization charged to other sundry expenses from previous periods at June 30.
Banco de Bogotá
Goodwill on the books at June 30, 2014 from acquisitions:
1. Banco de Crédito y Desarrollo Social – MEGABANCO S.A.
Goodwill was generated by the acquisition of ninety-four point ninety-nine percent (94.99%) of the shares
in Banco de Crédito y Desarrollo Social - Megabanco S. A. The cost of this operation, which was
authorized by the Colombian Superintendency of Finance in Resolution No. 917 issued on June 2, 2006,
came to $ 613,294 and will be amortized in twenty (20) years, by the exponential method.
The following table shows the allocation of goodwill initially determined for each business line,
accumulated amortization and the balance at June 30, 2014.
Business line
Commercial
Consumer
Payroll installment lending
Vehicles
Microcredit
Total
Book Value of
goodwill
Held (%)
32.7%
30.8%
27.0%
6.7%
2.8%
100.0%
$
$
200,794
188,616
165,774
41,207
16,903
613,294
Accumulated
amortization
52,186
49,022
43,085
10,710
4,393
159,396
Balance
148,608
139,594
122,689
30,497
12,510
453,898
Through an independent expert, the Bank annually reappraises, at market prices, the business lines
associated with goodwill to determine if there has been any loss owing to a decline in goodwill. If so, the
goodwill allocated to that line will be amortized up to the amount of the estimated loss.
The latest reappraisal update on the business lines to which goodwill was allocated was done by
Incorbank S.A. on January 31, 2014. It was based on the Bank’s closing financial statements at November
30, 2013 and shows no shortfalls whatsoever that might point to possible deterioration, since the market
value (or fair value) exceeds the book value for each line of business. Therefore, no additional
amortization for deterioration is required.
(Continued)
77
The following are highlights of the opinions expressed by experts who valued the business lines to which
the goodwill derived from the acquisition of Megabanco was allocated.
The value of goodwill was allocated to five lines of business: commercial loans, microcredit, consumer
loans, payroll installment lending and vehicle loans. The general criteria for defining these lines included
their relative share of the firm, their business approach, profitability and their potential for creating value.
The business lines were valued using the dividend discount flow. Experts consider it to be the most
appropriate method for valuing financial institutions and it is used widely by first-tier investment banks. It
projects the flow of available dividends over a period of 10 years, plus an end value, and discounts them
at an appropriate rate.
The reappraisal at market prices is compared to book value of each line of business to determine if there
is a loss in the value of the goodwill allocated to each line of business. Consequently, a loss in value
exists when the reasonable value of the line of business is less than its book value.
The initial allocation and appraisal on the acquisition date (June 2006), plus reappraisal on the merger
date (November 2006) and the first reappraisal update (November 2007) were done by Estrategias
Corporativas. The second through the sixth reappraisal updates (November 2008 – November 2013)
were done by PricewaterhouseCoopers Asesores Gerenciales. The seventh (November 2013) was
done by Incorbank.
2. AFP Horizonte Pensiones y Cesantías S.A.
The goodwill generated by the acquisition of sixteen point seventy-five percent (16.75%) of the shares in
AFP Horizonte Pensiones y Cesantías S.A. was entered on the books as instructed by the Colombian
Superintendency of Finance. The purchase cost $ 91.746, payable in twenty (20) years, and was
authorized through Resolution No. 0628/2013 issued by the Colombian Superintendency of Finance.
Business line
Pension and severance funds
Total
Held (%)
100.0% $
100.0% $
Book value of
goodwill
91,746
91,746
Accumulated
amortization
Balance
2,748
2,748
88,998
88,998
In this sense, the depreciation accumulated between the acquisition date (April 18, 2013) and June 30,
2014 was recorded in its entirety in the statement of operations for the first half of 2014.
(Continued)
78
Leasing Bogotá Panamá
Goodwill on the books at June 30, 2014 derived from the acquisition of:
1. BAC Credomatic
Goodwill was generated through the acquisition of one hundred percent (100.00%) of the shares in BAC
Credomatic, Inc., a holding of the Central American financial group known as BAC Credomatic. Banco de
Bogotá received authorization from the Colombian Superintendency of Finance to conduct this operation
through its subsidiary Leasing Bogotá Panamá, as per official letter no. 2010073017-048 dated December
3, 2010. The cost of the acquisition will be amortized within a period of twenty (20) years, via the
exponential method.
The following table shows the initial allocation of goodwill to the line of business, accumulated
amortization and the balance at June 30, 2014.
Line of business
BAC Credomatic
Ownership
interest (%)
100%
Initial Allocation
(December 9, 2010)
Dollars
Pesos
1,066
Accumulated
amortization
Dollars
Pesos
2,005,601
95
178,508
Balance
Dollars
971
Pesos
1,827,093
TRM at December 9, 2010: $1,880,82 (in pesos)
TRM at June 30, 2014: $1,881,19 (in pesos)
The latest reappraisal update of the business lines to which goodwill was allocated was done by Ernst &
Young on February 3, 2014. It is based on BAC Credomatic’s financial statements at closing on November
30, 2013 and shows no shortfalls whatsoever that might point to possible deterioration, since the market
value (or fair value) exceeds the book value of goodwill. Therefore, no additional amortization for
deterioration is required.
The following are highlights of the opinions expressed by experts:
 The Bac Credomatic business unit was defined as follows:
 The nature of the products and services is similar in all the companies in the group and in every
country where it operates.
 Regional policies and procedures are ISO certified. The policies on corporate governance, systems,
human resources, risk, credit and treasury are standard for each country.
 The regulatory environment is similar in the countries where BAC Credomatic operates. Although each
country has its own regulatory agency, the Banking Authority of Panama audits the banks in the group
through the consolidated supervisory agreements it has with the other local regulators.
 BAC clients have access to a regional network that allows them to conduct operations and business
throughout the region.
 The companies in the BAC Credomatic Group share certain resources with respect to physical and
intellectual capital, assets and financing
(Continued)
79
 BAC Credomatic’s goodwill was valued based on the cash-flow-to-equity method in which the cash flow
available to the shareholders is projected after computing all movements from or to creditors and
complying with the minimum capital requirements. The method projects the available cash flow over ten
(10) years, plus a residual or terminal value, all discounted at a rate that reflects the risks of the business
in question.
 The calculated market value of goodwill is compared to the balance of goodwill to determine whether or
not there is a loss in the value of goodwill.
 The initial allocation and appraisal on the acquisition date (December 2010), and the first reappraisal
update (November 2011), the second (November 2012) and the third (November 2013) were done by
the firm Ernst & Young.
2. Banco Reformador and Transcom Bank
Goodwill was generated through acquisition of one hundred percent (100.00%) of the shares in Banco
Reformador de Guatemala and Transcom Bank Barbados Limited, declared as Grupo Financiero
Reformador de Guatemala. The Colombian Superintendency of Finance authorized Banco de Bogotá to
conduct these operations through its subsidiaries Credomatic International Corporation and Bac
Credomatic Inc., as per official letter no. 2013068082-062 of December 3, 2013. The acquisition will be
amortized within a period of twenty (20) years, through the exponential method.
The following is a breakdown, by business line, of the initial allocation of goodwill, accumulated
Line of business
Banco Reformador
Transcom Bank
Ownership
interest (%)
100%
100%
Initial Allocation
(December 31, 2013)
Dollars
Pesos
227
43
Accumulated
amortization
Dollars
Pesos
437,118
82,927
0
0
10,061
2,772
Balance
Dollars
Pesos
227
43
427,057
80,155
Goodwill was allocated initially by Ernst & Young on February 7, 2014, based on the financial statements
of Banco Reformador and Transcom Bank at closing on December 31, 2013.
It has been less than one year since the acquisitions by Credomatic International Corporation. Therefore,
no assessment of deterioration in goodwill has been done. However, an assessment by an expert
highlights the following aspects.
 The business units of Banco Reformador and Transcom Bank, each with their respective goodwill, were
defined as follows:
o Each organization exercises its own operational control, combining all its operations, products and
services.
(Continued)
80
o Management adopts comprehensive business decisions on the development and continuity of
operations for each of the organizations.
 Goodwill was valued using the cash-flow-to-equity method whereby the cash flow available to
shareholders is projected after computing all movements from or to creditors and complying with the
minimum capital requirements. The method projects the available cash flow over five (5) years, plus a
residual or terminal value, all discounted at a rate that reflects the risk of the business being analyzed.
3. BBVA Panamá (now BAC de Panamá)
Goodwill was generated through acquisition of ninety-eight point ninety-two percent (98.92%) of the
shares in Banco Bilbao Viscaya Argentaria Panamá S.A. (BBVA Panamá, now BAC de Panamá). Banco
de Bogotá was authorized by the Colombian Superintendency of Finance to conduct this operation
through its subsidiary Leasing Bogotá Panamá, as per official letter no. 2013072962-052 dated December
12, 2013. The cost of the acquisition will be amortized by the exponential method, within a period of
twenty (20) years.
The following is a breakdown, by business line, of the initial allocation of goodwill, accumulated
Line of business
BBVA Panamá
Ownership
interest (%)
100%
Initial Allocation
(December 31,2013)
Dollars
Pesos
318
Accumulated
amortization
Dollars
Pesos
612,297
1
16,278
Balance
Dollars
Pesos
317
596,019
Goodwill was allocated initially by Ernst & Young on February 7, 2014, based on the financial statements
of BBVA Panamá (now Banco BAC de Panamá) at closing on December 31, 2013.
As it has been less than one year since the acquisitions by Leasing Bogotá Panamá, no assessment of
deterioration in goodwill has been done. However, an opinion issued by an expert highlights the following
aspects.
 The BBVA Panamá business unit was defined as follows.
 Operational control is exercised at the company level, combining all its operations, products and
services.
 Management adopts business decisions on the development and continuity of operations in a
comprehensive way as an organization.
 Goodwill was valued using the cash-flow-to-equity method whereby the cash flow available to
shareholders is projected after computing all movements from or to creditors and complying with the
minimum capital requirements. The method projects the available cash flow over five (5) years, plus a
residual or terminal value, all discounted at a rate that reflects the risk of the business being analyzed.
(Continued)
81
PORVENIR
AFP Horizonte Pensiones y Cesantías S.A.
Goodwill was generated through the acquisition of sixty-four point twenty-eight percent (64.28%) of the
shares in BBVA Horizonte Sociedad Administradora de Fondos de Pensiones y Cesantías S.A. This
operation was authorized by the Colombian Superintendency of Finance through Resolution No. 0628
dated April 3, 2013. The cost of the acquisition came to $642,625, producing $352,081 in goodwill to be
amortized by the exponential method, within a period of twenty (20) years.
The following is a breakdown, by business line, of the initial allocation of goodwill, accumulated amortization
and the balance at June 30, 2014.
Business line
Held (%)
Book value of
goodwill
100%
100%
352,081
352,081
Pension and severance funds
Total
Accumulated
amortization
10,581
10,581
Balance
341,500
341,500
The business line is valued using the projected dividend discount method, which is widely recognized for its
technical merit. Loss of goodwill is assessed annually as provided for by law.
(13) Deposits and demand accounts
Time deposits
Detail of time certificates of deposit, by maturity:
June 30
Domestic Currency:
Issued for less than 6 months
Issued for 6 months to under 12 months
Issued for 18 months or more
Total Domestic Currency
Foreign Currency Reduced to Domestic Currency
Issued for under 6 months
Issued for 18 months or more
Total Foreign Currency
Total Deposits and Demand Accounts
$
$
December 31
2,086,789
1,713,850
702,299
7,778,243
12,281,181
2,496,374
1,682,869
712,307
6,540,275
11,431,825
5,609,454
2,616,893
2,757,742
2,464,555
13,448,644
25,729,825
5,322,710
2,691,506
2,836,675
2,399,417
13,250,308
24,682,133
An ordinary reserve on deposits in domestic currency was established at June 30, 2014 and December
31, 2013, calculated with the following percentages.
Reserve
Deposits and demand accounts under 30 days
Deposits from official agencies
Deposits and demand accounts over 30 days
11.0%
11.0%
11.0%
(Continued)
82
Time deposits:
Under 180 days
180 to under 360 days
360 to under 540 days
Ordinary savings deposits
Time deposits
Trust deposits and creditors
Repurchase agreements on traded investments
4.5%
4.5%
4.5%
11.0%
11.0%
11.0%
11.0%
Other deposits and demand accounts
Detail of other deposits and demand accounts in domestic and foreign currency:
June 30
December 31
Domestic currency
$
Trust funds
Banks and correspondents
Special deposits
Demand accounts for banking services
Bank collection services
316
93,452
1,534
108,249
25,998
229,549
299
110,294
56,629
164,288
23,277
354,787
10,478
57,617
177,291
34,467
279,853
509,402
28,791
28,067
153,790
53,582
264,230
619,017
Foreign currency
Banks and correspondents
Special deposits
Demand accounts for banking services
Affiliated establishments
Total other deposits and demand accounts
$
(14) Money market liabilities and similar positions
Detail of interbank funds purchased and repo agreements:
June 30
Balance
December 31
Average yield
Balance
Average yield
Domestic currency
Ordinary interbank funds, purchased
Transfer commitments in closed repo operations
Investment transfer commitments in simultaneous
operations
Overnight operations
Total asset positions in domestic currency
$
323,100
404,813
3.85%
4.04%
206,310
1,191,400
3.24%
3.27%
3,830,484
217,485
4,775,882
3.90%
1.98%
2,347,314
10,680
3,755,704
2.85%
0.00%
216,337
238,237
11,532
466,106
0.36%
3.82%
1.50%
175,342
210,041
0
385,383
0.40%
1.51%
0.00%
Foreign currency
Ordinary interbank funds, purchased
Transfer commitments in open repo operations
Transfer commitments in close repo operations
Total asset positions in foreign currency
Total money market positions
$
5,241,988
4,141,087
(Continued)
83
(15) Borrowing from banks and other financial obligations
Detail in domestic currency and foreign currency reduced to domestic currency:
June 30
Short Term
(1 year)
Medium
Term, (1-3
years)
Long Term
(3 years)
Long Term
Over 5 Years
Entity
Banco de Comercio Exterior
$
Fondo para el Financiamiento del
Sector Agropecuario FINAGRO
Financiera de Desarrollo Territorial S.A
FINDETER
Foreign banks (1)
Others (2)
Total
$
Total
65,195
254,077
129,307
29,128
477,707
59,532
162,064
80,614
9,826
312,036
24,116
2,732,804
385,893
3,267,540
163,113
2,843,228
227,964
3,650,446
114,838
1,089,181
188,863
1,602,803
166,328
1,369,298
988,917
2,563,497
468,395
8,034,511
1,791,637
11,084,286
(1) The amount listed on the books at June 30, 2014 under CIC Receivables Master Trust, a consolidated special purpose vehicle,
came to USD 544, divided into two programs:1) Series 2002-A with a balance of USD194 and 2) Series 2014-A (issued in April
2014) with a balance of USD350. The certificates issued through that vehicle are secured by future cash flows originating with
transactions in affiliated businesses in Guatemala, Honduras, El Salvador, Nicaragua and Costa Rica. Transactions in affiliated
businesses are those generated by the holders of credit cards issued by international financial institutions through the Visa and
MasterCard credit programs, which are processed by the company. The certificates issued in 2002 (Series 2002-A) pay interest
quarterly in January, April, July and October, at a rate equivalent to the three-month LIBOR, plus a margin of 1.40 %. The
holders began to receive amortization of principal in July 2010. The original duration of the certificates issued in 2002 (Series
2002-A) is 4.68 years. The weighted average duration of the certificates at June 30, 2014 is 1.54. The notes issued in 2014
(Series 2014-A) pay interest in January, April, July and October at a fixed interest rate of 4.89%. Amortization of principal will
begin in July 2016.The original duration of these notes (Series 2014-A) is five (5) years. The weighted average duration at June
30, 2014 is 4.75 years.
At June 30, 2014, the books showed USD 282 under the trust known as CIC Central American Card Receivables Limited, a
consolidated special purpose vehicle. The certificates issued under this vehicle are secured by future cash flows originating with
transaction in affiliated businesses in Guatemala, Honduras, El Salvador, Nicaragua and Costa Rica. Transactions in affiliated
businesses are those generated by the holders of credit cards issued by international financial institutions under the American
Express credit program, which are processed by the company. The certificates pay interest quarterly in February, May, August
and November at a fixed rate of 4.50%. The holders will begin to receive payment of principal in August 2015. The original
duration of the certificates is 4.99 years. The weighted average duration of the certificates at June 30, 2014 is 3.99 years.
In December 2013, BAC International Bank signed a subordinated loan (in right of payment to all other ordinary loans) with
Grupo Aval Limited for US$ 180. This is an eight-year loan maturing on March 20, 2021. The principal is due in a single payment
at maturity, and the interest is payable quarterly as of March 2014, based on a fixed rate of 7.71%
Secured obligations came to USD 1,169 at June 30, 2014.
At June 30, 2014, the Company had USD914 in unused lines of credit ranging in maturity up to 2017. This item includes the
obligations Leasing Bogota SA Panama has with Grupo Aval Limited, as described below. They mature in over five (5) years
and may be paid in advance, at any time, without penalty.
Interest rate
Payable in US dollars:
Fixed rate
5.0% a 5.50%
June 30
Various
maturities up
to
2023
Book
value
USD
252
USD
252
(Continued)
84
December 31
Short Term
(1 year)
Medium
Term, (1-3
years)
Long Term
(3 years)
Long Term
Over 5
Years
Total
Entity
Banco de Comercio Exterior
$
Fondo para el Financiamiento del
Sector Agropecuario FINAGRO
Financiera de Desarrollo Territorial S.A
FINDETER
Foreign banks (1)
Others (2)
Total
$
118,026
132,236
41,383
11,550
303,195
107,443
152,861
71,713
6,306
338,323
44,837
4,295,217
269,971
4,835,494
165,329
2,883,377
195,143
3,528,946
95,820
462,360
177,359
848,635
128,051
877,829
1,064,581
2,088,317
434,037
8,518,783
1,707,054
11,301,392
(2) The books showed USD472 at December 31, 2013 under CIC Receivables Master Trust, a consolidated special purpose
vehicle. The certificates issued under this vehicle are secured by future cash flows originating with transactions in affiliated
businesses in Guatemala, Honduras, El Salvador, Nicaragua and Costa Rica. Transactions in affiliated businesses are those
generated by the holders of credit cards issued by international financial institutions under the Visa and Mastercard credit
programs, which are processed by the company. The certificates pay interest quarterly in January, April, July and October, at a
rate equivalent to the three-month LIBOR, plus a margin of 1.40 % at December 31, 2013. The holders began to receive
payment of principal in July 2010. The original duration of the certificates is 4.68 years. The weighted average duration of the
certificates at December 31, 2013 is 1.81 years.
On June 10, 2013, through a consolidated special purpose vehicle, Leasing Bogotá Panamá originated USD 282 of its USD 500
issue of series A notes maturing on November 5, 2020. The amount registered on the books at December 31, 2013 under the
trust known as CIC Central American Card Receivables Limited, a consolidated, special purpose vehicle, came to USD 282. The
certificates issued through this vehicle are secured with future cash flows arising from transactions in affiliated businesses in
Guatemala, Honduras, El Salvador, Nicaragua and Costa Rica. Transactions in affiliated businesses are those generated by
holders of credit cards that are issued outside the country where the card is being used, by international financial institutions
under the American Express credit programs, which are processed by Leasing Bogotá Panamá. The notes pay interest quarterly
in February, May, August and November, at a fixed rate of 4.50 % at December 31, 2013. The holders will begin to receive
amortization of principal as of August 2015. The weighted average duration of the notes at December 31, 2013 is 4.49 years.
In December 2013, BAC International Bank signed a subordinated loan (in right of payment to all other ordinary loans) with
Grupo Aval Limited for US$ 180. This is an eight-year loan that matures on March 20, 2021. The principal is due in a single
payment at maturity, and the interest is payable quarterly as of March 2014, based on a fixed rate of 7.71%
USD 1,121 in obligations were secured at December 31, 2013.
(3) This item includes the obligations Leasing Bogota SA Panama has with Grupo Aval Limited, as described below. They mature in
over five (5) years and may be paid in advance, at any time, without penalty.
Interest rate
Payable in US dollars:
Fixed rate
5.0% a 5.50%
December 31
Various
maturities up
to
2023
Book
value
USD
257
USD
257
(Continued)
85
(16) Accounts payable
Interest
Detail of interest payable:
June 30
Deposits and demand accounts
Money market operations
Bank loans and other financial obligations
Bonds outstanding
$
207,037
339
45,592
52,527
305,495
$
December 31
205,429
118
43,751
68,489
317,787
Others
Detail of other accounts payable:
June 30
Dividends and surpluses
Rent
$
Bank transaction tax
Sales tax payable
Purchase commitments
Suppliers
Employee withholding and contributions
Insurance premiums
Payable payroll
Uncashed drawn checks
Tax collections
Account payable – Visa payments
Peace bonds
Security bonds
Own ATM overages
Clearing overages – Grupo Aval
Credit card vouchers
Credit and debit card accounts payable
Debit card use
Positive credit card balances
Overages in ATMs
CDs, matured
Loan collections for third parties
Allowance for electronic purse used by coffee growers
Liens, distribution payroll installment funds & compensation disbursed own ATMs
Accounts payable for derivatives (forwards)
Credit card holder payments applicable
Third-party portfolios
Accounts payable between the different business units of Hoteles Estelar
Transport, freight and haulage
Payments to settle loan operations
Payroll deductions
Intercompany operation
Deposits from clients for leases
Accounts payable to owners
Credit balance, loan repayment
Technical services
Sundry accounts
$
December 31
228,923
6,067
18,659
46,447
5,170
301,144
7,552
233,653
4,821
25,874
43,508
2,566
235,368
9,859
123,789
16,083
2,385
28,227
250,550
8,268
28,631
7,302
1,605
128,161
32,213
1,536
1,077
5,085
265
26,213
5,385
62,178
41,205
323,729
15,890
29,583
10,430
6,461
14,747
15,883
5,402
4,100
3,551
5,576
4,530
113,022
1,937,024
174,350
12,359
2,929
88,627
76,758
7,382
28,522
7,316
2,306
110,139
8,135
8,050
9,046
4,214
4,161
29,766
5,354
99.740
43,183
200,247
8,077
33,673
9,687
5,323
8,537
0
0
0
3,863
5,122
4,234
76,456
1,633,205
(Continued)
86
(17) Long-term debt
Detail of bonds outstanding at June 30, 2014 and December 31, 2013:
June 30
Bank
Corporación Financiera Colombiana S.A. and Subordinates
Leasing Bogotá Panamá and Subordinates
$
December 31
2,492,172
110,203
585,366
3,187,741
2,537,396
110,203
552,140
3,199,739
February 2020
January 2017
February 2023
CPI + 7% to UVR +
7% to DTF + 3%
CPI + 5.33% to
UVR + 5.29% to
CPI + 5.45% to
UVR+5.45%
5%
5.375%
July 2014
CPI + 5.70%
$
Terms of the bonds:
Issuer
Date marketed
Apr-08
Banco de
Bogotá
Epiandes
June 30
$
December 31
215,829
213,801
Feb-10
214,558
211,790
Dec-11
Feb-13
1,126,833
934,952
2,492,172
1,154,171
957,634
2,537,396
Jul-07
29,150
29,150
Lehner
Jun-00
1,053
1,053
Pisa
May-09
80,000
80,000
110,203
110,203
BAC
Guatemala
Jan-13 to Jun14
235,565
BAC El
Salvador
Dec-11 to Jun14
BAC
Honduras
Maturity date
Interest rate
April 2015
February 2017
To
November 2014
DTF In effect
May 2016
to
May 2019
CPI + 6.59 10.09%
a CPI + 6.9 10.39%
238,608
July 2014
To
September 2015
4.65% to 8.5%
183,401
160,864
July 2014
to
February 2020
4.00% to 5.8%
Dec-12 to Jun14
94,209
81,269
December 2015
To
July 2018
5.5% to 11.16%
BAC
Nicaragua
Oct-13 & Nov13
22,057
20,049
October 2014
To
November 2017
4.5% to 5.25%
Banco BAC
Panamá
Oct-11 to May 13
50,134
51,350
May 2016
to
October 2021
3.75% to 5.25%
585,366
3,187,741
552,140
3,199,739
$
(18) Other liabilities
Consolidated labor obligations
Detail of movement in consolidated labor obligations:
Severance
Pay
Increase from additions and mergers (3)
Accrued during the period
Paid
Effect of exchange differential
$
50,189
14,240
30,085
(14,923)
(30)
79,561
Interest on
Severance
Pay
2,271
185
4,286
(691)
0
6,051
Vacation
58,124
1,492
18,514
(21,352)
(1)
56,777
Other
Employee
Benefits (1)
Total
69,918
3,263
115,112
(125,350)
(244)
62,699
180,502
19,180
167,997
(162,316)
(275)
205,088
(Continued)
87
Severance
Pay
Accrued during the period
Paid
Effect of exchange differential
Balance at June 30, 2014 (2)
(1)
(2)
(3)
Interest on
Severance
Pay
35,320
(46,840)
(833)
67,208
$
Other
Employee
Benefits (1)
Vacation
2,417
(6,275)
0
2,193
28,703
(22,299)
(552)
62,629
Total
155,045
(125,423)
(2,171)
90,150
221,485
(200,837)
(3,556)
222,180
Other employee benefits include the legal bonus, voluntary bonus, vacation bonus and other social security benefits.
Includes employee liabilities of companies in the real sector entered under estimated liabilities at annual closing on June 30, 2014; namely $
2,562 in severance pay, $152 in interest on severance pay, $1,232 in vacation pay and $2,043 for the legal bonus.
Includes acquisition of Grupo Reformador and Banco BAC Panamá at December 31, 2013.
Prepaid income and deferred credits
Detail of prepaid income and deferred credits:
Balance at
June 30
Exchange
difference
Credits
Charges
Balance at
December 31
598
31,832
686
106
37,434
75,055
763,327
33,062
9,149
0
(579)
0
0
0
0
0
0
0
3,296
27,578
98,383
997
12,429
20,389
185,482
0
0
3,344
29,695
98,883
1,131
3,909
0
14,901
2,381
0
646
34,528
1,186
240
28,914
54,666
592,746
35,443
9,149
15,384
0
0
408
15,792
3,444
5,714
50
3,712
979,553
(76)
(62)
0
(119)
(836)
0
0
1,175
4,630
354,359
554
4,279
1,312
2,049
162,846
4,074
10,055
187
1,250
788,876
Prepaid income
Interest
Commissions
Rent
Storage services
Contingents for unstable zones
Property tax contingencies
Credits for works in future periods
Design contingencies
Geological risk contingencies
Transport, freight and haulage from deferred
collection - construction stage sections I and II
Prepaid income
Leaseback agreement
Hedging credit cards
Rent from leasing contracts
Others
Total
$
$
June 30
December 31
Deferred credits
Profits from sale of assets
Interest originating with restructuring processes
Profit from reappraisal adjustment on fixed income securities, financial institutions,
derivatives and structured loans
Credit cards
Total
$
$
40
18,805
61
19,346
0
275
7,557
26,402
7,317
26,999
(Continued)
88
Retirement pensions
Movement in retirement pensions:
Actuarial
estimate
Amortizations (1)
Payments made
Adjustment to the actuarial estimate
Amortizations
Payments made
Adjustment to the actuarial estimate
$
$
Pensions to be
amortized
122,666
78
(5,276)
7,355
124,823
157
(6,629)
564
118,915
12,882
(4,109)
24
8,435
17,232
(6,791)
0
564
11,005
Total
amortized
109,784
4,187
(5,300)
(1,080)
107,591
6,948
(6,629)
0
107,910
(1) Includes recovery of $1,985 in surplus allowance on the Bank’s actuarial estimate.
The following are the main factors used in the actuarial estimates for retirement pensions.
Annual interest rate
Future annual increase in pensions
June 30
4.80%
3.26%
December 31
4.80%
3.26%
The last actuarial estimate for retirement pensions pertains to December 31, 2013.
At June 30, 2014 and December 31, 2013, the Bank had amortized eighty-six point zero four percent
(85.04%) and eight-five point fifty-nine percent (85.59%) of the actuarial estimate, in that order, while
Corporación Financiera de Colombia S.A, a subordinate company, had amortized eighty-nine point sixtynine percent (89.69%) and eighty-three point fifty-two percent (83.52%), respectively. Almacenes
Generales de Depósito Almaviva S.A. has amortized one hundred percent (100.00%) of the actuarial
estimate.
Others
Detail of other liabilities during the six months ended June 30, 2014 and December 31, 2013:
June 30
Deferred payment letters of credit
Credit for deferred monetary correction
Deferred income tax
Cancelled accounts
Credits applicable to obligations receivable
Cash overages
Clearing overages
Consortia or temporary joint ventures
Account payable on Unipalma leaseback contract
Guarantee contract performance bond
Guest deposits to secure a reservation with Hoteles Estelar
Loyalty program
Others
$
$
8,696
10,164
180,372
17,404
127,780
2,506
312
8,975
4,721
3,697
148
9,348
19,585
393,708
December 31
5,043
10,520
217,649
17,336
117,738
1,425
472
7,149
4,721
3,199
2,212
5,039
19,958
412,461
(Continued)
89
(19) Estimated liabilities and provisions
Detail of estimated liabilities and allowances:
June 30
Employee obligations
Severance pay
Interest on severance pay
Vacation
Voluntary bonus
Bonuses
Service bonus
Social Security Institute
Other benefits
$
Taxes
Income tax payable
Industry and commerce tax and others
Property tax
Others
Others
Fines and penalties - Col. Supr. of Finance
Fines and penalties, litigation, compensation and claims
Credit cards
Cash custody and storage
Employee bonuses
Suppliers
Credivesa contract
Fogafin insurance
Fees
Allowance for Industrias Lehner disassembly plan and VAT allowance
Allowance for client loyalty programs
Allowance for pension contingency
Allowance for legal fees and costs
Others
Allowance for VAT interest payable
Installation service cost allowance
Legal allowance
Sundries
$
December 31
2,562
152
1,232
2,043
2,861
8,643
4,218
4,716
26,427
0
0
0
126
1,776
8,399
475
2,461
13,237
436,506
19,979
21
15,657
472,163
120,458
15,939
21
15,674
152,092
0
27
30,476
4,185
137
1,472
3,081
4,530
22,957
1,772
3,831
52,079
31,435
3,606
12
550
26,301
4,600
166
1,472
4,778
4,259
25,716
639
16,254
51,093
31,250
3,708
3,303
1,103
2,948
38,909
205,851
704,441
2,048
104
1,089
28,947
202,986
368,315
Detail of non-controlling interest:
June 30
Almaviva S.A.
Bamer S.A. –Honduras
Casa de Bolsa S.A.
Corficolombiana S.A.
Corporacion Tenedora Baccom -Nicaragua.
Crédito S.A. –Nicaragua
Episol -Coninvial S.A.
Estudios, Proyectos e Inversiones de los Andes S.A.
Fidubogotá S.A.
Gas Comprimido del Perú
$
6,683
91
9,936
2,547,673
216
57
28,989
83,208
10,415
1,144
December 31
6,511
89
10,007
2,489,474
202
52
15,464
64,253
9,225
1,476
(Continued)
90
June 30
Gestión y Contacto S.A.
Global Cargo S.A.
Hoteles Estelar de Colombia S.A.
Industrias Lehner S.A.
Megalínea S.A.
Organización Pajonales S.A.
Pizano S.A.
Plantaciones Unipalma de los Llanos S.A.
Porvenir S.A.
Promotora y Comercializadora Santamar S.A.
Proyectos de Infraestructura S.A.
South Logistic S.A.
Tejidos Sintéticos de Colombia S.A.
Banco BAC Panamá – BBVA
$
366
481
90,585
4,289
120
4,066
89,176
61,582
638,756
4,528
35,878
2
78
508
3,618,827
December 31
433
446
89,182
(7,941)
122
4,071
94,880
60,695
599,634
4,421
35,692
44
82
3,923
3,482,437
Income tax
The presentation of consolidated information on income tax returns is not permitted under Colombian law.
Therefore, the tax losses of a consolidated subordinate may not be used to offset the taxable income of
another consolidated subordinate. Law 1607/2012 set the applicable income tax rate at 25% as of 2013
and created an equality tax (CREE in Spanish) at a rate of eight percent (8%); however, the rate for 2013,
2014 and 2015 is 9%.
According to Law 863/2003, the Bank and its subordinates are subject to the transfer pricing regime on
operations with economic affiliates outside the country. The material effect on income tax as a result of the
transfer pricing study is not estimated.
(20) Common shares
The Bank had $5,000.0 in authorized capital at June 30, 2014 and December 31, 2013. This amount was
represented by 500 million shares at a face value of $10.00 pesos each. Subscribed and paid in capital
came to $3,075 and was represented by 307,471,032 shares.
(21) Reserves
Legal
By law, the Bank and its national subordinates are required to create a mandatory reserve by
appropriating ten percent (10%) of net profits from each accounting period until the reserve equals fifty
percent (50%) of subscribed capital. The reserve may be reduced to less than fifty percent (50%) of
subscribed capital, if necessary to cancel out losses in excess of undistributed profits. However, it may not
be used to pay dividends or to cover expenses or losses, as long as the company has undistributed
profits.
Additional paid-in capital, which is the difference between the value paid per share and its face value, is
also registered in this account as a legal reserve.
(Continued)
91
Legal reserve
June 30
Through appropriation of net profits
Through additional paid-in capital
$
3,358,708
4,221,859
7,580,567
December 31
3,182,514
4,221,859
7,404,373
Statutory and voluntary reserves
Available to the Board of Directors of the Bank and its subordinates:
June 30
Statutory reserves
Statutory reserves
$
December 31
1,460
1,460
1,399
1,399
13,198
276,001
5,716
560,992
855,907
857,367
8,437,934
8,560
259,240
5,716
517,585
791,101
792,500
8,196,873
Voluntary reserves
Available to the Board of Directors
For tax provisions
To repurchase shares
Others
Total reserves
$
(22) Surplus– unrealized accumulated loss on investments and derivatives
June 30
December 31
Unrealized accumulated gains or losses on investments available for sale
Debt securities
Equity securities with high or medium turnover
$
(50,545)
44,291
(6,254)
(110,927)
36,344
(74,583)
(1,456)
(427)
(1,883)
(8,137)
(2,758)
4,708
1,950
(72,633)
Unrealized gains or losses on hedging with derivatives
From hedging cash flows
From hedging investments in lending or deposit operations in foreign currency
$
(23) Contingent accounts
Detail of contingent accounts:
June 30
Debtor:
Securities delivered in repo and simultaneous operations
Securities delivered in related operations
Securities delivered in related operations
Commission partial withdrawals
$
4,555,950
23,472
0
623
December 31
3,795,404
0
4,650
502
(Continued)
92
June 30
Loan interest
Financial leasing interest
Monetary correction on the loan portfolio
Rights in options – speculative
Rents receivable
Receivable options to buy
Other debtor contingent accounts
254,956
8,665
26
1,282,198
2,619,771
216,116
805,311
9,767,088
259,582
9,267
12
1,138,923
2,418,589
148,071
871,562
8,646,562
7,000
151,313
2,151,177
632,669
58,445
10,216,936
886,796
755,643
14,859,979
7,000
875,701
1,845,869
752,405
133,600
10,021,974
1,026,035
665,600
15,328,184
$
Creditor:
Warranty bonds
Securities received in repo and simultaneous operations
Bank guarantees
Letters of credit
Undisbursed approved loans
Unused lines of credit
Obligations in options – speculative
Other creditor contingent accounts
$
$
December 31
(24) Memorandum accounts
Detail of memorandum accounts:
June 30
December 31
Debtors:
Assets and securities delivered in custody
Fair price of primary asset positions
Assets and securities delivered in guarantee
Reappraisal gains on foreclosed assets
Remittances and other outward collections
Checks negotiated and pending payment
Assets written off
Undrawn loans to the Bank
Exchange adjustment due to re-expression of loans
Bonds, not sold
Bonds, amortized
Asset inflation adjustments
Liquidity fund
Accounts receivable for yield on trading investments in debt securities
Accounts receivable for dividends decreed on high and medium turnover equity
securities
Loans to parent company, branches and subsidiaries
New farm loans
Dividend rights in kind from equity reappraisal
Property and equipment, fully depreciated
Tax value of assets
Allowances for persons in agreement with creditors (moratorium)
Trading investments in debt securities
Investments held to maturity
Investments in debt securities available for sale
$
5,440,843
4,603,086
1,285,415
95,719
42,878
4,625
3,001,902
1,877,301
1,731
2,355,859
465,805
69,546
677
364,261
5,718,247
4,166,380
476,889
105,568
43,925
4,752
3,957,452
1,541,349
2,957
2,228,883
465,805
70,545
565
307,943
2,126
1,088
10,902
43,839
4,964
747,748
71,728,116
200,557
1,888,168
1,536,938
7,252,931
0
43,838
36,741
683,398
62,611,673
193,000
3,388,319
1,424,306
6,161,740
(Continued)
93
June 30
Reciprocal asset operations with parent companies and subordinates
Reciprocal operations that affect costs and expenses with parent companies and
Subordinates
Other debtor memorandum accounts *
December 31
424,114
223,944
7,797
10,952
79,740,026
$ 183,197,874
72,772,833
166,643,092
* There is a percentage on the books at June 30, 2014 and December 31, 2013 calculated by the Tax Department on the portfolio
funded with $15,565,293 and $14,871,354 from savings, $35,191,786 and $31,912,999 from loans and $19,626,493 and
$17,041,638 from other sources, based on the savings and loan account balances. This account was created for tax purposes.
June 30
December 31
Creditors:
Assets and securities received in custody
Assets and securities received in guarantee for future loans
Guarantees pending cancellation
Assets and securities received as admissible guarantees
Other assets and securities received in guarantee – other guarantees
Inward collections
Recovery of assets written-off , domestic currency
Merchandise deposited in own warehouses
Merchandise in private warehouses
Merchandise in transit
Merchandise in own silos
Merchandise received from other warehouses
Equity inflation adjustments
Capitalization from equity revaluation
Consigned merchandise in inward customs clearance
Discounted warehouse liens
Yield on trading investments in equity securities
Equity securities
Dividends decreed on trading investments in equity securities
Tax value of equity
Classification of financial leasing operations
Classification of operational leasing agreements
Classification of home mortgage loans – admissible guarantee
Classification of home mortgage loans – other guarantees
Classification of consumer loans- admissible guarantee
Classification of consumer loans – other guarantees
Classification of microcredit – admissible guarantee
Classification of microcredit – other guarantees
Classification of commercial loans – admissible guarantee
Classification of commercial loans – other guarantees
Reciprocal liability operations with parent companies and subsidiaries
Reciprocal operations affecting equity, with parent companies and subsidiaries
Reciprocal operations affecting income, with parent companies and subsidiaries
Other creditor memorandum accounts
$
2,136,141
8,151,726
1,508,766
37,022,680
4,522,444
776,260
29,447
1,385,800
20,141
9,006
13,748
323
441,058
441,058
5,310
88,530
1,568,836
19
3,027
16,886,074
2,618,014
38,119
5,655,509
458
2,255,208
12,284,775
198,148
138,717
7,977,244
30,683,441
34,340
5,057
6,452
2,112,023
$ 139,017,899
2,535,424
7,883,341
1,260,451
32,500,176
8,861,846
735,739
29,983
1,644,517
235,222
8,944
24,743
323
441,058
441,058
5,104
99,354
2,487,855
19
3,724
13,634,119
2,377,933
32,358
5,368,462
223
2,190,919
11,896,142
187,051
137,330
7,845,452
28,683,610
31,822
3,287
9,528
2,004,345
133,601,462
(Continued)
94
(25) Trust memorandum accounts
Detail of trust memorandum accounts:
June 30
December 31
Detail :
Investment trusts
Management trusts
Guarantee and other trusts
Real estate trusts
Pension liability trusts
Mutual funds
$
$
823,458
15,939,617
5,787,058
9,650,292
17,818,692
7,660,500
57,679,617
916,208
15,903,802
4,540,532
7,449,107
16,393,223
7,014,967
52,217,839
(26) Related-party transactions
The following are regarded as related parties.
1) Shareholders who individually possess more than 10% of the Bank´s capital stock and those whose
individual ownership interest is less than that amount, but who have options exceeding 5% of the technical
equity.
Shareholders with more than 10% ownership interest:
- Grupo Aval Acciones y Valores S.A.
- “Grupo Aval” includes the following subsidiaries of our parent company:
o Grupo Aval Limited
o Grupo Aval International
Shareholders with less than 10% of the capital stock, but with transactions exceeding 5% of the technical
equity.
- The Bank registered no operations at closing in June 30, 2014 and December 31, 2013 with
shareholders who have less than 10% ownership interest that would exceed 5% of its technical equity.
2) Members of the Board of Directors (Directors) and Management. Managers are employees of the Bank
with legal representation.
3) Subordinate Institutions: Where the Bank owns more than 10% of capital stock, directly or indirectly,
and exercises administrative or financial control.
4) Other Non-subordinate Related Institutions:
- Banco de Occidente and subordinates
- Banco AV Villas and subordinates
- Banco Popular and subordinates
- Seguros de Vida Alfa S.A
- Seguros Alfa S.A.
(Continued)
95
Operations with related parties:
The Bank may conduct operations and enter into agreements or contracts with related parties, provided it
is understood that all operations of this type are to be conducted at reasonable values, consistent with
market conditions and rates.
None of the following existed between the Bank and its related parties during the periods ended June 30,
2014 and December 31, 2013:
Loans implying a liability for the borrower that is not in keeping with the essence or the nature of the loan
agreement.
Loans with interest rates other than those ordinarily paid or charged to third parties under similar
conditions with respect to maturity, risk and the like.
Operations with terms different from operations with third parties.
Banco de Bogotá S.A. has agreements to enable Fiduciaria Bogota and Porvenir to use its network of
offices.
These arrangements are consistent with the Bank’s manual on agreements; specifically, Chapter VI
entitled “Special Agreements with Subsidiaries to Use the Banco de Bogotá Network”.
The national government has authorized trust companies to use the offices of banks. For that purpose,
Fiduciaria Bogotá S.A. entered into a contract with Banco de Bogotá S.A. to use the Bank´s network of
offices for its operations. The contract defines the operational management of transactions with customers
of the mutual fund accounts managed by Fiduciaria Bogotá.
In the case of Porvenir, pursuant to the provisions outlined in Law 50/1990 (Labor Reform Act) and Law
100/1993 (General Comprehensive Social Security System), the Bank entered into an agreement with
Sociedad Administradora de Fondos de Pensiones y Cesantías PORVENIR S.A. whereby the Bank offers
its offices as a support network for services related to Porvenir’s Severance Fund and Mandatory Pension
Fund.
During the six months ended June 30, 2014 and December 31, 2013, the directors were paid $1,282 and
$1,178, respectively, to attend meetings of the Board of Directors and those of the committees.
The Bank registered the following balances for loans and deposits with companies related to its directors
and managers at closing on June 30, 2014 and December 31, 2013.
June 30
December 31
Loan portfolio
$
476,895
286,192
$
240,506
23,071
(Continued)
96
All operations were conducted at market prices. The average rate on loans the Bank extended to related
parties is equivalent to the DTF+2.94. Credit card transactions and overdrafts are charged at the full
rates applicable to those products.
Grouping of balances and operations with related parties:
June 30
Grupo Aval
ASSETS
Cash
Investments
Investment allowance
Loan portfolio
Acceptances and derivatives
Accounts receivable
Salable, foreclosed and returned assets
Other assets
Reappraisals, net
Related Parties
Non-subordinates
Subordinates
Directors
0
36,409
0
186,001
448
365,940
0
0
0
0
0
0
8,999
0
101
0
16
0
63
264
0
2,643
0
347
0
0
1,102
7,371
8,924,340
729
22,091
0
33,295
17
0
414,887
1,365,329
0
9,139
1,162,162
459,498
74,307
0
0
2,029
0
0
0
16
0
20
0
4,121
5,500
0
0
6,908
0
94
0
677,048
0
0
44
5,404
7,525
0
360
EQUITY
Unrealized gain or loss
0
0
0
2,029,794
INCOME
Interest
Investment reappraisal
Forward valuation
Commissions
Rent
Dividends received
Other income
1,172
828
46,950
174
249
0
10
294
0
0
10
5
0
4
762
0
0
46
312
0
0
1,048
0
0
3,272
177
468,581
523
41,732
136,401
0
10,318
0
0
3,406
33
0
0
1,282
0
1,187
121
139
0
140
2,229
0
796
3,276
10,550
0
1,084
0
260
0
46,428
LIABILITIES
Liability positions
Financial obligations
Accounts payable
Bonds, outstanding
Other liabilities
Estimated liabilities and allowances
EXPENSES
Interest
Forward valuation
Commissions
Fees
Rent
Personnel
Other expenses
December 31
Grupo Aval
Directors
Related Parties
Non-subordinates
Subordinates
ASSETS
Cash
Investments
Loan portfolio
Accounts receivable
Other assets
Reappraisal, net
0
37,622
0
11
1,126
326,836
0
0
0
0
0
6,527
0
42
2
0
48
264
0
737
0
719
0
1,086
13,062
8,877,537
747
20,023
0
41,199
0
383,134
LIABILITIES
507,545
6,729
1,521
0
7,653
0
642,845
0
(Continued)
97
December 31
Grupo Aval
Accounts payable
Obligations
Bonds, outstanding
Other liabilities
Estimated liabilities and allowances
EQUITY
Related Parties
Non-subordinates
Subordinates
Directors
332,225
1,201,340
76,110
0
0
10
0
0
75
0
6,570
0
963
0
0
3,783
129
7,707
0
446
(1,728)
0
0
2,130,133
INCOME
Interest
Investment reappraisal
Forward valuation
Commissions
Rent
Dividends received
Other income
43
789
106,611
119
248
0
79
90
0
0
10
7
0
12
514
0
0
20
307
0
0
1,081
0
0
3,738
146
455,989
283
EXPENSES
Interest
Forward valuation
Commissions
Fees
Rent
Personnel
Other expenses
47,185
125,104
0
6,707
0
0
2,467
46
0
0
1,178
0
0
19
92
0
92
1,682
0
784
2,996
9,730
0
1,161
0
249
0
6,509
Summary of Banco de Bogotá S.A.´s transactions with direct Subordinates:
June 30
BANCO DE BOGOTA
S.A.
ASSETS
Cash
Investments
Loan portfolio
Derivatives
Accounts receivable
Other assets
Reappraisal
LIABILITIES
Deposits and demand
accounts
Active positions
Derivatives
Obligations
Accounts payable
Bonds, outstanding
Other liabilities
EQUITY
Unrealized gain or
loss
INCOME
Interest
Commissions
Rent
Dividends received
Other income
Almaviva
Banco de
Bogotá
Panamá
Casa de
Bolsa
Corfi Colombiana
Fidubogotá
Leasing
Bogota
Panamá
Bogotá
Finance
Corp.
Corp.
Ficentro
0
29,741
0
14
0
2,146
0
118,294
3,755
114,304
0
0
0
3
0
13,043
0
3,940
0
0
0
0
0
2,251
0
3,083,869
0
22,033
0
12,043
0
0
0
123,340
0
0
0
7,808
0
70,112
0
5,161,810
0
0
0
0
0
643
0
0
0
0
0
24
0
0
0
381,539
0
0
0
8,069
0
193,932
0
94
0
0
0
0
0
65
0
729
729
0
0
0
0
0
2,013
2,821
28
637,229
8,968
3,593
0
0
0
2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
121
0
0
0
0
0
0
0
0
0
0
0
0
0
155
7,525
0
360
2,773
15,878
0
0
0
0
0
1,939
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,029,794
0
0
0
0
0
0
3
105
18
4,288
15
0
9
7
10,090
0
0
1
0
0
0
969
162
0
95,551
266
0
12
74
33,694
0
0
0
0
288,054
0
0
43
0
0
1
0
1,846
0
36,904
0
0
0
0
0
0
0
0
0
0
0
Megalinea
Porvenir
(Continued)
98
June 30
BANCO DE BOGOTA
Almaviva
Banco de
Bogotá
Panamá
Casa de
Bolsa
Corfi Colombiana
Fidubogotá
17
0
0
196
0
0
0
0
0
0
0
0
0
35
0
0
0
0
8,702
0
0
0
0
389
217
0
0
0
0
0
EXPENSES
Interest
Commissions
Fees
Rent
Personnel
Other expenses
Leasing
Bogota
Panamá
Megalinea
214
0
0
0
0
0
39
0
0
0
0
45,087
Porvenir
Bogotá
Finance
Corp.
Corp.
Ficentro
0
0
0
0
0
0
0
0
0
0
0
0
1,280
623
0
51
0
0
June 30
ALMAVIVA
Banco de
Bogotá Panamá
ASSETS
Cash
Investments
Loan portfolio
Derivatives
Accounts receivable
Other assets
Reappraisal
LIABILITIES
Derivatives
Obligations
Accounts payable
Other liabilities
EQUITY
INCOME
Interest
Commissions
Rent
Other income
EXPENSES
Interest
Commissions
Fees
Rent
Other expenses
Casa de
Bolsa
Corficolombiana
Fidubogotá
Leasing
Bogotá
Panamá
Porvenir
Bogotá
Finance
Corp.
Corp.
Ficentro
627
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
5
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
15
0
0
5
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
30
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
19
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
June 30
BANCO DE BOGOTA PANAMA
ASSETS
Cash
Investments
Loan portfolio
Derivatives
Accounts receivable
Other assets
Reappraisal
LIABILITIES
Derivatives
Obligations
Account payable
Other assets
EQUITY
Almaviva
Fidubogotá
Leasing
Bogotá
Panamá
Porvenir
Bogotá
Finance
Corp.
Corp.
Ficentro
Casa de Bolsa
Corficolombiana
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
11
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6
0
0
627
0
0
0
0
72
0
0
772
0
56
0
0
0
0
0
0
0
0
0
2,811
0
0
0
0
0
0
0
0
0
159
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(Continued)
99
June 30
Almaviva
Casa de Bolsa
Corficolombiana
Leasing
Bogotá
Panamá
Fidubogotá
Porvenir
Bogotá
Finance
Corp.
Corp.
Ficentro
INCOME
Interest
Commissions
Rent
Other income
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EXPENSES
Interest
Commissions
Fees
Rent
Other expenses
0
0
0
0
0
0
346
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
35
0
0
0
0
0
1
0
0
0
0
0
0
0
0
0
June 30
Leasing
Bogotá
Panamá
Bogotá
Finance
Corp.
Banco de
Bogotá Panamá
Corficolombiana
0
0
0
0
0
0
0
0
72
0
0
0
0
772
0
0
5
0
0
0
0
12
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
44
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EQUITY
0
0
0
0
0
0
0
0
INCOME
Interest
Commissions
Rent
Other income
0
0
0
0
0
346
0
0
66
27
0
0
0
0
0
0
0
0
0
0
0
43
0
0
0
0
0
0
0
0
0
0
EXPENSES
Interest
Commissions
Fees
Rent
Personnel
Other expenses
0
0
0
0
0
0
0
0
0
0
0
0
14
0
0
13
0
671
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
CASA DE BOLSA
Almaviva
ASSETS
Cash
Investments
Loan portfolio
Derivatives
Accounts receivable
Other assets
Reappraisal
LIABILITIES
Deposits and demand
accounts
Derivatives
Obligations
Account payable
Other assets
Fidubogotá
Porvenir
Corp.
Ficentro
June 30
CORFICOLOMBIANA
ASSETS
Cash
Investments
Loan portfolio
Derivatives
Accounts receivable
Salable, foreclosed and
returned assets
Other assets
Reappraisal
LIABILITIES
Derivatives
Obligations
Banco de
Bogotá Panamá
Almaviva
Casa de Bolsa
Fidubogotá
Leasing
Bogotá
Panamá
Porvenir
Bogotá
Finance
Corp.
Corp.
Ficentro
0
0
0
0
0
20
56
0
0
0
0
0
0
0
0
44
0
0
0
0
0
0
0
8
0
0
0
0
0
0
0
0
0
0
0
118
0
0
0
0
0
0
0
0
0
0
0
0
17
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
5
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(Continued)
100
June 30
CORFICOLOMBIANA
Banco de
Bogotá Panamá
Almaviva
Account payable
Other assets
EQUITY
Casa de Bolsa
Leasing
Bogotá
Panamá
Fidubogotá
Porvenir
Bogotá
Finance
Corp.
Corp.
Ficentro
5
0
0
0
12
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
INCOME
Interest
Commissions
Rent
Other income
0
0
0
19
0
0
0
0
9
668
13
8
0
0
0
22
0
0
0
0
0
0
0
192
0
0
0
0
0
0
0
0
EXPENSES
Interest
Commissions
Fees
Rent
Other expenses
0
0
0
0
13
0
0
0
0
0
66
27
0
0
0
0
9
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Corficolombiana
Fidubogotá
Porvenir
Bogotá
Finance
Corp.
Corp.
Ficentro
June 30
LEASING BOGOTA PANAMA
Banco de
Bogotá Panamá
Almaviva
Casa de Bolsa
ASSETS
Cash
Investments
Loan portfolio
Derivatives
Accounts receivable
Other assets
Reappraisal
0
0
0
0
0
0
0
0
2,811
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
LIABILITIES
Derivatives
Obligations
Account payable
Other assets
0
0
0
0
0
0
0
0
11
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EQUITY
0
0
0
0
0
0
0
0
INCOME
Interest
Commissions
Rent
Other income
0
0
0
0
0
0
35
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EXPENSES
Interest
Commissions
Fees
Rent
Other expenses
0
0
0
0
0
0
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Corficolombiana
Fidubogotá
Leasing
Bogotá
Panamá
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
June 30
BOGOTA FINANCE
CORPORATION
ASSETS
Cash
Investments
Loan portfolio
Derivatives
Accounts receivable
Other assets
Reappraisal
Banco de
Bogotá Panamá
Almaviva
0
0
0
0
0
0
0
0
45
114
0
0
0
0
0
0
Casa de
Bolsa
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Porvenir
Corp.
Ficentro
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(Continued)
101
June 30
BOGOTA FINANCE
CORPORATION
Banco de
Bogotá Panamá
Almaviva
Casa de
Bolsa
Corficolombiana
Fidubogotá
Leasing
Bogotá
Panamá
Porvenir
Corp.
Ficentro
LIABILITIES
Derivatives
Obligations
Account payable
Other assets
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EQUITY
0
0
0
0
0
0
0
0
INCOME
Interest
Commissions
Rent
Other income
0
0
0
0
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EXPENSES
Interest
Commissions
Fees
Rent
Other expenses
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
June 30
FIDUBOGOTA
Banco de
Bogotá Panamá
Almaviva
Casa de Bolsa
Corficolombiana
Leasing
Bogotá
Panamá
Porvenir
Bogotá
Finance
Corp.
Corp.
Ficentro
ASSETS
Cash
Investments
Loan portfolio
Derivatives
Accounts receivable
Other assets
Reappraisals
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,250
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
LIABILITIES
Derivatives
Obligations
Account payable
Other assets
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EQUITY
0
0
0
0
0
0
0
0
INCOME
Interest
Commissions
Rent
Other income
0
0
0
0
0
0
0
0
0
0
0
0
0
9
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EXPENSES
Interest
Commissions
Fees
Rent
Other expenses
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
22
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Leasing
Bogotá
Panamá
Bogotá
Finance
Corp.
Corp.
Ficentro
0
0
0
0
0
0
0
0
0
0
June 30
PORVENIR
ASSETS
Cash
Investments
Loan portfolio
Derivatives
Banco de
Bogotá Panamá
Almaviva
0
0
0
0
0
0
0
0
0
0
Casa de Bolsa
0
0
0
0
0
Corficolombiana
Fidubogota
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(Continued)
102
June 30
PORVENIR
Accounts receivable
Other assets
Reappraisal
Banco de
Bogotá Panamá
Almaviva
Casa de Bolsa
Corficolombiana
Fidubogota
Leasing
Bogotá
Panamá
Bogotá
Finance
Corp.
Corp.
Ficentro
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
LIABILITIES
Derivatives
Obligations
Account payable
Other assets
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
118
0
0
0
0
2,250
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EQUITY
0
0
0
0
0
0
0
0
INCOME
Interest
Commissions
Rent
Other income
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EXPENSES
Interest
Commissions
Fees
Rent
Other expenses
0
0
0
0
0
0
0
0
0
0
0
43
0
0
0
0
0
0
0
192
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Corficolombiana
Fidubogota
Porvenir
Bogotá
Finance
Corp.
June 30
CORP. FICENTRO
ASSETS
Cash
Investments
Loan portfolio
Derivatives
Accounts receivable
Other assets
Reappraisals
Banco de
Bogotá
Panamá
Almaviva
Casa de Bolsa
Leasing
Bogotá
Panamá
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EQUITY
0
0
0
0
0
0
0
0
INCOME
Interest
Commissions
Rent
Other income
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EXPENSES
Interest
Commissions
Fees
Rent
Other expenses
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
LIABILITIES
Deposits and demand
accounts
Derivatives
Obligations
Account payable
Other assets
(Continued)
103
BANCO DE BOGOTA
S.A.
ASSETS
Cash
Investments
Loan portfolio
Derivatives
Accounts receivable
Other assets
Reappraisals
LIABILITIES
Deposits and demand
accounts
Liability positions
Derivatives
Accounts payable
Obligations
Bonds, outstanding
Other liabilities
Banco de
Bogotá
Panamá
Casa de
Bolsa
Corfi Colombiana
Fidubogotá
0
29.741
0
1
0
9.568
0
111.452
7.848
107.223
0
0
0
0
0
5.779
0
3.940
0
0
0
0
0
2.084
0
3.147.431
0
19.892
0
13.971
0
0
0
123.340
0
0
0
8.245
0
49.233
0
5.004.761
0
0
0
1.102
0
30.677
0
0
0
1
0
13
0
0
4.774
5.213
68
487.411
16.652
2.745
0
0
12
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
610
0
0
0
0
0
0
0
0
0
0
0
0
0
158
0
7.707
0
446
0
0
0
2.130.133
0
0
0
0
1.060
92
18
19.974
10
26
7
183
1
1
0
0
0
43
0
0
185
0
5
0
0
0
0
0
1
0
10
0
0
0
0
EQUITY
Unrealized gain or
loss
INCOME
Interest
Commissions
Rent
Dividends received
Other income
December 31
Leasing
Bogota
Panamá
Almaviva
EXPENSES
Interest
Commissions
Fees
Rent
Personnel
Other expenses
Bogotá
Finance
Corp.
Corp.
Ficentro
0
460.256
0
0
0
5.454
0
183.843
0
96
0
0
0
0
0
66
0
747
747
0
0
0
0
0
3.990
116.566
0
0
0
0
256
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
174
0
118.254
17
9
73
24.581
0
0
0
249.883
0
31
0
0
1
2.153
0
43.115
0
0
0
0
0
0
0
0
0
8.126
0
0
0
0
344
272
0
0
0
0
0
24
0
0
0
0
0
42
0
0
0
0
5.170
1.194
626
0
50
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Megalinea
Porvenir
December 31
ALMAVIVA
Banco de
Bogotá Panamá
Casa de
Bolsa
Corficolombiana
Fidubogotá
Leasing
Bogotá
Panamá
Porvenir
Bogotá
Finance
Corp.
Corp.
Ficentro
ASSETS
Cash
Investments
Loan portfolio
Derivatives
Accounts receivable
Other assets
Reappraisal
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
14
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
LIABILITIES
Derivatives
Accounts payable
Obligations
Other liabilities
0
0
0
0
0
0
0
0
0
0
96
0
5
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(Continued)
104
December 31
ALMAVIVA
Banco de
Bogotá Panamá
Casa de
Bolsa
Corficolombiana
Leasing
Bogotá
Panamá
Fidubogotá
Porvenir
Bogotá
Finance
Corp.
Corp.
Ficentro
EQUITY
0
0
0
0
0
0
0
0
INCOME
Interest
Commissions
Rent
Other income
0
0
0
0
0
0
0
0
0
0
35
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EXPENSES
Interest
Commissions
Fees
Rent
Other expenses
0
0
0
0
0
0
0
0
0
0
0
0
0
0
29
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
December 31
Almaviva
Casa de Bolsa
Corficolombiana
Leasing
Bogotá
Panamá
Fidubogotá
Porvenir
Bogotá
Finance
Corp.
Corp.
Ficentro
ASSETS
Cash
Investments
Loan portfolio
Derivatives
Accounts receivable
Other assets
Reappraisal
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6
0
0
LIABILITIES
Derivatives
Accounts payable
Obligations
Other liabilities
0
0
0
0
0
55
0
772
0
0
104
0
0
0
0
0
0
0
0
0
5,004
0
0
0
0
0
0
0
0
0
162
0
0
0
0
0
0
0
0
0
EQUITY
0
0
0
0
0
0
0
0
INCOME
Interest
Commissions
Rent
Other income
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
104
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EXPENSES
Interest
Commissions
Fees
Rent
Other expenses
0
0
0
0
0
0
296
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
0
0
0
0
0
0
0
0
0
December 31
CASA DE BOLSA
ASSETS
Cash
Investments
Almaviva
0
0
0
Banco de
Bogotá Panamá
Corficolombiana
55
0
0
5
0
0
Fidubogotá
0
0
0
Leasing
Bogotá
Panamá
0
0
0
Porvenir
0
0
0
Bogotá
Finance
Corp.
Corp.
Ficentro
0
0
0
(Continued)
0
0
0
105
December 31
Leasing
Bogotá
Panamá
Bogotá
Finance
Corp.
Banco de
Bogotá Panamá
Corficolombiana
0
0
0
0
0
0
0
772
0
0
0
0
8
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
115
129
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EQUITY
0
0
0
0
0
0
0
0
INCOME
Interest
Commissions
Rent
Other income
0
0
0
0
0
296
0
0
4
82
0
0
0
0
0
0
0
0
0
0
0
33
0
0
0
0
0
0
0
0
0
0
EXPENSES
Interest
Commissions
Fees
Rent
Personnel
Other expenses
0
0
0
0
0
0
0
0
0
0
0
0
24
0
0
13
2
733
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
CASA DE BOLSA
Almaviva
Loan portfolio
Derivatives
Accounts receivable
Other assets
Reappraisal
LIABILITIES
Deposits and demand
accounts
Derivatives
Accounts payable
Obligations
Other liabilities
Fidubogotá
Porvenir
Corp.
Ficentro
December 31
CORFICOLOMBIANA
ASSETS
Cash
Investments
Loan portfolio
Derivatives
Accounts receivable
Salable, foreclosed and
returned assets
Other assets
Reappraisals
LIABILITIES
Derivatives
Accounts payable
Obligations
Other liabilities
EQUITY
Banco de
Bogotá Panamá
Almaviva
Casa de Bolsa
Fidubogotá
Leasing
Bogotá
Panamá
Porvenir
Bogotá
Finance
Corp.
Corp.
Ficentro
0
0
0
0
0
101
104
0
0
0
0
0
0
0
0
129
0
115
0
0
0
0
0
2
0
0
0
0
0
0
0
0
0
0
0
28
0
0
0
0
0
0
0
0
0
0
0
0
15
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
14
0
0
0
0
0
0
0
5
0
8
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
INCOME
Interest
Commissions
Rent
Other income
0
0
0
29
0
0
0
0
16
725
13
18
0
0
0
30
0
0
0
0
0
0
0
177
0
0
0
0
0
0
0
0
EXPENSES
Interest
Commissions
Fees
Rent
Other expenses
0
0
0
0
21
0
0
0
0
0
4
82
0
0
0
0
11
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(Continued)
106
December 31
LEASING BOGOTA PANAMA
Banco de
Bogotá Panamá
Almaviva
Casa de Bolsa
Corficolombiana
Fidubogotá
Porvenir
Bogotá
Finance
Corp.
Corp.
Ficentro
ASSETS
Cash
Investments
Loan portfolio
Derivatives
Accounts receivable
Other assets
Reappraisal
0
0
0
0
0
0
0
0
5,004
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
LIABILITIES
Derivatives
Accounts payable
Obligations
Other liabilities
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EQUITY
0
0
0
0
0
0
0
0
INCOME
Interest
Commissions
Rent
Other income
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EXPENSES
Interest
Commissions
Fees
Rent
Other expenses
0
0
0
0
0
0
104
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Corficolombiana
Fidubogotá
Leasing
Bogotá
Panamá
December 31
BOGOTA FINANCE
CORPORATION
Banco de
Bogotá Panamá
Almaviva
Casa de
Bolsa
Porvenir
Corp.
Ficentro
ASSETS
Cash
Investments
Loan portfolio
Derivatives
Accounts receivable
Other assets
Reappraisal
0
0
0
0
0
0
0
0
45
117
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
LIABILITIES
Derivatives
Accounts payable
Obligations
Other liabilities
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EQUITY
0
0
0
0
0
0
0
0
INCOME
Interest
Commissions
Rent
Other income
0
0
0
0
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EXPENSES
Interest
Commissions
Fees
Rent
Other expenses
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(Continued)
107
December 31
FIDUBOGOTA
Banco de
Bogotá Panamá
Almaviva
Casa de Bolsa
Corficolombiana
Leasing
Bogotá
Panamá
Porvenir
Bogotá
Finance
Corp.
Corp.
Ficentro
ASSETS
Cash
Investments
Loan portfolio
Derivatives
Accounts receivable
Other assets
Reappraisal
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,798
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
LIABILITIES
Derivatives
Accounts payable
Obligations
Other liabilities
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EQUITY
0
0
0
0
0
0
0
0
INCOME
Interest
Commissions
Rent
Other income
0
0
0
0
0
0
0
0
0
0
0
0
0
11
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EXPENSES
Interest
Commissions
Fees
Rent
Other expenses
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
30
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Leasing
Bogotá
Panamá
Bogotá
Finance
Corp.
Corp.
Ficentro
December 31
PORVENIR
Banco de
Bogotá Panamá
Almaviva
Casa de Bolsa
Corficolombiana
Fidubogota
ASSETS
Cash
Investments
Loan portfolio
Derivatives
Accounts receivable
Other assets
Reappraisal
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
LIABILITIES
Derivatives
Accounts payable
Obligations
Other liabilities
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
28
0
0
0
0
1,798
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EQUITY
0
0
0
0
0
0
0
0
INCOME
Interest
Commissions
Rent
Other income
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EXPENSES
Interest
Commissions
Fees
Rent
Other expenses
0
0
0
0
0
0
0
0
0
0
0
33
0
0
0
0
0
0
0
177
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(Continued)
108
December 31
CORP. FICENTRO
Banco de
Bogotá
Panamá
Almaviva
ASSETS
Cash
Investments
Loan portfolio
Derivatives
Accounts receivable
Other assets
Reappraisal
Casa de Bolsa
Corficolombiana
Fidubogota
Leasing
Bogotá
Panamá
Porvenir
Bogotá
Finance
Corp.
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EQUITY
0
0
0
0
0
0
0
0
INCOME
Interest
Commissions
Rent
Other income
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EXPENSES
Interest
Commissions
Fees
Rent
Other expenses
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
LIABILITIES
Deposits and demand
accounts
Derivatives
Accounts payable
Obligations
Other liabilities
(27) Other income and operating expenses
Detail of other operating income:
June 30
Finished goods
Merchandise
Consortia and temporary joint ventures
Other operating income
$
Other operating income
$
742,224
22,588
6,459
6,926
778,197
December 31
810,194
26,301
4,410
5,427
846,332
Detail of other operating expenses:
June 30
Storage services
Loss on sale of portfolio
Fees
Taxes
Rent
Operation
Compliance
$
0
60
84,484
194,210
99,508
88,191
3,579
448
December 31
7
86
79,106
169,793
92,824
81,296
2,209
427
(Continued)
109
June 30
Power failure
Group life
Fire
Earthquake
Pilferage
Vehicles
Personal accident
Other insurance
Maintenance and repairs
Office adaptation
Payment unrecovered claims - Operating risk
Amortization
Remodeling
Studies and projects
Computer software
Improvements to properties taken on lease
Software leased out
Other amortizations
Janitorial and surveillance services
Temporary services
Advertising and publicity
Public relations
Readjustment in real value unit (UVR)
Public utilities
Electronic data processing
Travel expenses
Transportation
Stationary and office supplies
Operating risk
Finished goods
Merchandise
Livestock sale cost
Other expenses
Building management
Reimbursements Grupo Aval
Outsourcing - special services
Mass incentive
Security elements
Software service and development
Databases
Outsourcing – payment centers
Cash custody and storage
Credit card rewards
Publicity, Sena apprentices, file custody, operational inspection, highway police,
subcontracts
Support (SENA)
Adjustment for conversion of financial statements (*)
Liquidation Credivesa contract earnings
Allowance for uncovered pension claims
Others of lesser amount
$
December 31
219
388
2,171
180
991
48
785
8,833
58,346
18,146
0
280
478
2,080
128
990
429
568
8,100
53,988
23,164
17
2,507
824
39,053
9,427
3
50,501
36,587
21,209
67,039
1,196
4,797
95,096
19,036
15,793
57,057
24,742
3,041
1,190
343,356
5,142
9
3,205
62
46,185
8,836
3
51,506
35,838
35,350
65,021
2,369
813
94,323
26,901
15,522
54,121
24,596
3,223
1,757
381,808
5,537
16
5,911
8,606
43,250
10,322
1,303
10,262
6,869
7,576
776
11,996
7,289
6,707
29,411
9,470
1,766
10,467
8,290
6,866
637
5,347
5,652
6,207
1,434
0
15,600
34
71,296
1,559,079
1,302
15,420
14,598
3,009
90,293
1,590,041
(*) Reclassified to the exchange account at June 30, 2014 for presentation purposes.
(Continued)
110
(28) Allowance for other assets, net
Detail of expensed allowances for other assets:
June 30
Cash
Investments
$
6,132
29
83
11,889
2,741
454
1,057
22,385
Operational leasing operations (net)
Salable, foreclosed and returned assets (1)
Property and equipment (1)
Other assets
Others
$
(1)
December 31
1,254
354
150
11,102
2,294
2,608
1,235
18,997
Does not include movement by real-sector companies to equate with the Single Accounts Plan for the financial system. However, these
operations are considered in the notes on allowances and cash flows.
(29) Non-operating income and expenses
Detail of non-operating income:
June 30
Profit from sale of:
Foreclosed assets
Property and equipment (1)
Other assets
$
Own property rental
Recoveries:
Assets written off
Recovery of allowances for property and equipment
Recovery of allowances for salable, foreclosed & returned assets and those not used in
the corporate business
Recovery of investment allowances
Recovery of other allowances
Recovery of allowances for other assets
Returns
Recovery on insurance claims
Other recoveries (2)
Other non-operating income
Income from foreclosed and returned assets
Amortization investment cost shortfall compared to book value
Recovery allowance disassembly Industrias Lehner
Franchise incentives
Creditor balances declared abandoned
Income from previous periods
Recovery expenses consortia and third-party portfolios
Others
$
December 31
1,959
32,945
0
34,904
2,756
13,364
18
16,138
2,101
2,898
31,591
19
30,300
430
3,382
3,644
257
15,241
1,364
915
3,755
81,135
137,659
374
31,725
1,487
1,067
4,480
38,676
112,183
183
695
0
12,441
1,955
5,717
1,445
4,177
13,190
39,803
214,467
164
1,067
58,511
0
298
15,088
3,169
0
12,133
90,430
221,649
(Continued)
111
(1)
(2)
Includes $9,983 in profit at December 31, 2013 from the sale of buildings belong to the parent company.
Includes $168 at December 31, 2013 from equating for BAC Credomatic.
Detail of non-operating expenses:
June 30
Loss on sale of foreclosed assets
Loss on sale of property and equipment
Loss on damages or claims – operational risk
Amortization assets delivered on loan without charge
Fines, penalties and litigation
Interest on fines and penalties –operational risk
Expenses on foreclosed and returned assets
Loss on loan recovery
Non-operating expenses – consortia or temporary joint ventures
Amortization surplus investment cost over book value
Operational risk
Publication and advertisements
Acknowledgement to customers
Rent – Proprietors
Discounts
Recognition to clients
Conditioned discount in sales
Administrative and corporate support
December 31
$
147
13,554
17,252
151
9,944
633
2,205
45
101
854
67
49
609
14,965
258
0
928
800
609
316
0
0
236
0
14,936
78,659
205
4,663
15,310
151
8,284
282
1,926
237
338
9,398
39
15
595
14,438
1,741
861
1,636
2,705
595
1,486
3,226
2,098
640
994
22,175
94,037
$
226,484
264,018
$
Acknowledgement to clients
Taxes assumed
Administrative counterclaim
Residual from commission or rent
Monetary correction
Warehouse certificate
Others
Net balance of non-controlling interest:
Non-controlling interest, net
Deferred tax
The following temporary differences were responsible for movement in the deferred tax account during the
six months ended June 30, 2014 and December 31, 2013:
June 30
More (less) amortization of deferred tax charges
Employee indemnity and reserve for retirement pensions
Industry and commerce tax allowance
Difference between fiscal and book income from reappraisal of investments,
forwards, swaps, futures and options
Other allowances
Tax losses and surplus presumptive income to be amortized
Fixed assets
$
$
December 31
(1,360)
665
(495)
9,337
(1,256)
(24)
(44,341)
22,157
18,715
904
(2,084)
(27,996)
(32,675)
(2,118)
(5,907)
(10,486)
The books show a recovery of $1,380 in deferred tax liabilities from previous periods at June 30, 2014. This is why Account 5405- Income
Tax was not affected and explains the difference compared to the book entries.
(Continued)
112
(30) Balance Sheet Closings
The Bank and its national subordinates are required to balance their books semi-annually. Subordinates
outside the country do so annually.
(31) Contingencies
Legal action against the Bank
Administrative and legal proceedings pending against the Bank at June 30, 2014 and December 31, 2013
were handled according to the instructions outlined in External Circular 066/ 2001, as amended by
External Circular 002/ 2003, both issued by the Colombian Superintendency of Finance. The respective
claims were valued based on the opinions of the attorneys in charge and their analysis of the cases.
Labor cases
The claims in labor suits pending at June 30, 2014 and December 31, 2013 came to $11,513 y $10,852,
in that order. There were $3,591 and $2,798 in respective allowances constituted to cover probable
contingencies. Historically speaking, most claims of this type have been resolved in favor of the Bank.
Civil cases
An assessment of the civil court cases pending at June 30, 2014 and December 31, 2013 showed
$203,911 and $208,229 in claims (mostly for contingencies inherited from MEGABANCO, with $74,676
covered by FOGAFÍN under an agreement entered into on June 21, 2006 between the Bank and
FOGAFIN to assume contingent liabilities). There were $1,802 and $3,081 in respective allowances on the
books to cover probable contingencies.
Two civil cases, one filled by Grupo Empresarial Viva Limitada and Carmen Dora Mariño de Medina and
another by Secondo Isidoro Medina Patiño, as part of criminal action charging evidentiary falsehood
involving a public document and others, are currently being handled by the Second Deputy Prosecutor
assigned to the Bogota Appellate Court and involve claims for $ 80,000 in damages. A request for
procedural invalidity was resolved unfavorably, and the prosecution ordered preclusion (estoppel) of the
investigation. The plaintiff appealed. The appellate court agreed and the investigation continues. This
contingency is considered remote, since the Twelfth Deputy Prosecutor in Pasto issued a resolution on
March 6, 2010 declaring the statute of limitations on criminal action brought with respect to the complaint
filed by Isidoro Medina Patiño, alleging forgery of private documents concerning promissory notes in
favor of Bancoop, had expired. Moreover, the plaintiff and the other debtors entered into a settlement
agreement with the creditor (third-party portfolio – Megabanco assets in trust) on July 28, 2008 in which
they acknowledged the existence of their commitments to Bancoop, their status as delinquent debtors
and presented a payment proposal that was accepted by the creditor. The property placed in trust by
Isidoro Medina and his wife Dora Mariño de Medina was not foreclosed and the settlement agreement
was accepted by the court handling the executory proceedings against the debtors. In addition, neither
Megabanco nor Banco de Bogotá attended the signing of public document no. 2492 in 2001, nor were
(Continued)
113
they required to do so, because there is no personnel succession between the fiduciary,
FIDUBANCOOP, which was present when the document was signed, and Banco de Bogota, which
absorbed Megabanco.
Action for revocation brought by Cooperadores (in liquidation) against Megabanco S.A. (now Banco de
Bogotá S.A.) for $12,000 in damages is being heard, in the first instance, by the Civil Division of the
Sixth Circuit Court in Cali and a judgment is pending. The risk is regarded as eventual, but this
contingency is covered by FOGAFIN, so no allowances have been made. Cooperadores is seeking
contractual revocation of the real estate foreclosure agreements entered into with BANCOOP and
Coopdesarrollo concerning 100 landed properties and shares in COOPSERFUN.
The contingency derived from the class action suit filed by the group known as Rafael María Leaño and
others seeking $23,427 in equity compensation for the former associates of CUPOCRÉDITO, owing to
damages suffered due to the decline in the value of their investment, is in the trial phase and is being
heard in the first instance. A decision is pending on an objection to the expert opinion, which was raised
by the lawyer for the Bank. The case has been at a standstill since November 19, 2009 with the judicial
order calling for evidence as part of the objection process in February 2012 requiring an expert to testify.
In addition to the contingency being covered by FOGAFIN, the risk is regarded as remote, because the
action has prescribed and there are no grounds for the alleged liability. Furthermore, MEGABANCO S.A.
is a third party foreign to the situation being claimed.
Administrative cases and others
The tax-related administrative and legal claims brought by national and local tax authorities establish
penalties in some cases for irregularities allegedly committed by the Bank in exercise of its activity as a
national and regional tax collection agent. In others, higher taxes are determined for the Bank in its
capacity as a taxpayer. These claims totaled $4,496 and $5,235 at June 30, 2014 and December 31,
2013; the respective allowances came to $665 and $665.
Almacenes Generales de Depósito Almaviva S.A.
Labor cases.
The labor claims on record at June 30, 2014 and December 31, 2013 came to $1,107 y $1,439. There
were $750 and $815 in respective allowances for probable contingencies. Historically, claims of this type
have been decided in favor of Almacenadora.
Administrative and other cases
The claims in administrative and judicial proceedings at June 30, 2014 and December 31, 2013 came to
$1,579 y $1,238 for each period, with $1,517 and $1,238 in respective allowances having been made.
Labor cases
The cases against Fiduciaria Bogotá S.A. at June 30, 2014 and December 31, 2013 represented $6,500
and $1,400 in respective claims, with no allowances on the books.
(Continued)
114
Civil cases
The claims being sought in civil cases against the company at June 30, 2014 and December 31, 2013
came to $1,152 and $2,022, with no allowances on the books.
The claims being sought in administrative and other cases at June 30, 2014 and December 31, 2013
came to $16,255 and $13,206, respectively, with no allowances on the books.
Corporación Financiera Colombiana S.A.
Labor cases
The company reported $3,066 and $3,411 in labor claims at June 30, 2014 and December 31, 2013, with
$862 and $747 in respective allowances entered on the books.
Civil cases
There were $193,413 and $181,109 in civil court claims at June 30, 2014 and December 31, 2013, with
$1,205 and $1,107 in respective allowances entered on the books.
The claims in administrative cases and other proceedings at June 30, 2014 and December 31, 2013
totaled $40,484 and $42,396 in that order, with $4,503 and $1,032 in respective allowances entered on
the books.
Among others, the most significant contingencies in the group pertain to the subordinates listed below
Fiduciaria Corficolombiana S.A.:
PLAINTIFF
Special Unit for Investigations into
Corruption
–Intersectoral
Deputy
Comptroller No. 2, Office of the
Comptroller General of Colombia –
181 – Guarantees
Attorney: Juan Carlos Bernal
Special Unit for Investigations into
Corruption
–Intersectoral
Deputy
Comptroller No. 2, Office of the
Comptroller General of Colombia 203
–
Without
guarantees
Attorney: Juan Carlos Bernal
CAUSE OF ACTION
ASSESSMENT
PROVISION
TYPE
To establish if those under investigation are
liable fiscally for an alleged property-related
loss to the city of Villavicencio, owing to an
investment of municipal resources in the
Coocafe – Visemsa Trust.
$1,664
$ 1,664
Case
closed
To establish if those under investigation are
liable fiscally for an alleged property-related
loss to the Department of Meta, owing to an
investment of the department’s royalties in
the Coocafe – Visemsa Trust.
$ 2,724
$ 2,724
Case
closed
(Continued)
115
Hoteles Estelar S.A.:
A suit on behalf of the public’s interest was filed by Mr. Gari Norberto Garcia on August 16, 2001 against
the Nation – Colombian Ministry of Defense – Navy; the Nation –General Maritime Administration
(DIMAR); the Nation - Ministry of the Environment; the Nation - Ministry of Transportation; the Nation Office of the Superintendent of Notaries and Civil Registration – the Cartagena Office of Public
Instruments; the Cartagena de Indias Tourism and Cultural District and Compañía Hotelera de Cartagena
de Indias S.A., a firm in which Hoteles Estelar S.A. holds 50.2% interest, Fondo de Garantias de
Instituciones Financieras, FOGAFIN, 39.5%, Grupo Bavaria, 6.7% and Hilton International, 2.5%, among
others.
The suit claimed the collective rights and interests concerning administrative ethics, enjoyment of public
space, enjoyment of a healthy environment and the existence of an ecological balance, and the rational
management and use of natural resources belonging to the State had been violated and sought a ruling
that would order the State to return 37,018 m2 of land claimed from the sea and the illegal contribution of
five lots turned over by the city of Cartagena.
The matter was decided, in the first instance, through a ruling that denied the claims of the suit. However,
the plaintiff appealed. Subsection C of the Third Section of the Administrative Litigation Division of the
Honorable State Council, returned a ruling in the second instance, on March 15, 2013, whereby (i) it was
decided no collective right susceptible to protection through action brought on behalf of the public’s
interest was violated with respect to the land assigned by the city of Cartagena in the establishment of
Compañia Hotelera de Cartagena de Indias S.A.; and (ii) the appealed ruling was overturned. Instead, the
collective rights and interests concerning the defense of property for public use and public property were
declared to have been violated. Consequently, the land considered to be for public use was ordered to be
returned and, in the event there are buildings on that property, Compañia Hotelera de Cartagena S.A. was
ordered, as a compensatory measure, to acquire land to build a park, within a period not to exceed three
(3) years. The park in question would be intended for the use and enjoyment of the entire community and
would be managed by the District of Cartagena. The cost of its maintenance during the first thirty (30)
years would be borne by Compañia Hotelera de Cartagena S.A..
Compañía Hotelera de Cartagena de Indias S.A., filed a petition asking for the ruling to be declared null
and void. It was denied.
Within the legal opportunity and through its attorney, the Company issued requests for clarification and
addition. They were decided by the State Council through a supplementary ruling on May 8, 2013 in which
two points in the operative part of the ruling were clarified, a new point was added, and the remaining
requests for clarification and addition were denied. The ruling was applicable as of May 30, 2013.
Subsequently, the case file was sent by the State Council to the Bolivar Administrative Appeals Court,
which issued a decision on December 18, 2013 in which the judge recused himself from the case.
Considering the decision violated the fundamental right to due process and the constitutional principles of
good faith and legitimate confidence, Compañía Hotelera de Cartagena de Indias S.A. granted power of
attorney to Mr. Jaime Cordoba Trivino to defend its interest through a writ of protection filed on August 5,
2013 with the Fourth Section of the State Council. It is currently pending a decision in the first instance.
(Continued)
116
This contingency is considered probable, as per Article 52, Decree 2649/ 1993. However, given the
difficulties in interpreting the ruling, which make it unfeasible to determine the scope of the established
sentences, it has not been possible to quantify them and, as a result, no allowance was made at closing
on June 30, 2014 and December 31, 2013.
The Verification Committee was established on June 20, 2014 to confirm the orders contained in the
aforementioned decision have been carried out. The next hearing will take place in September 2014.
Sociedad Administradora de Fondos de Pensiones y Cesantías Porvenir S.A.
Labor cases
The labor suits pending against Porvenir at June 30, 2014 and December 31, 2013 represented $1,584
and $1,291 in claims, with $742 and $700 in respective allowances entered on the books.
Civil and other cases
There were two thousand five hundred twenty-three (2,523) ongoing court cases against the company at
June 30, 2014. They involve social security and employee benefits (survivor pensions, disability and old
age pensions, return of balances, invalid affiliation, transfer to other systems, etc.). One thousand five
hundred eighty-four (1,584) of these cases pertain to litigation covered by a social security insurance
policy. Accordingly, no allowances have been made in those instances, since the amounts would be
covered by the insurance company in the event of an adverse ruling, except in cases where the insurer
has raised an objection. The allowance for the latter is calculated at $5,710. The other 939 cases are not
covered by the policy, and the claims resulting from an eventual sentence would have to be paid by the
company. There is an allowance of $8,660 to cover that possibility, for a total of $14,370.
The respective contingency came to $14,549 y $13,730 at June 30, 2014 and December 31, 2013.
There is also a $117 fine levied by the Colombian Superintendent of Corporations, due to a sanction
against the voluntary pensions funds known as Horizonte Premium, Plus and Horizonte for foreign
exchange operations. It is fully provisioned (100%).
Casa de Bolsa S.A.
Cases against the brokerage firm
There was only one case (a class action suit) pending against the firm at June 30, 2014 and December
31, 2013. The claims were appraised on the basis of the opinion of the lawyer in charge and his analysis
of the case.
Class action suit brought by Juan José Arbeláez and others
There was a class action suit pending against Valores del Popular S.A. (now Casa de Bolsa S.A.) at June
30, 2014 for $ 2,000 in damages. As it is likely to succeed, there has been no provisioning. The case file
number is 200900494-00 and the suit is being heard by the Civil Division of the Sixteenth Circuit Court of
Bogotá.
(Continued)
117
After the insurer, as the impleaded party, was notified and replied to the petition, the case went to the
judge’s chambers on August 8, 2011 to consider the motion for reconsideration and supplementary appeal
filed by the plaintiff (petitioners). This analysis resulted in the prior motions for limitation and dismissal
proposed by the impleaded party (the insurer) being declared invalid, and the requested appeal was
granted.
With the petitions of both parties and the ruling of the court having been examined, the appellate chamber
confirmed the decision of the trial judge, thereby denying the previous motions to dismiss and ordering the
appellant to pay the costs. The conciliation hearing was scheduled for November 23, 2012. However, it
could not be held on that date, due to a strike by judicial employees of the court, and was rescheduled for
June 12, 2013 at 9:00 a.m. The conciliation hearing was held on that date, at the indicated time;
however, the judge declared the conciliation stage as unsuccessful, since several of the plaintiffs were
absent. As a result, the case will move forward in the court.
Through an order issued on December 10 and notified on December 12 through insertion in the records
and posting at the court, the Sixteenth Civil Court of Bogota initiated the evidentiary phase of the class
action suit against Casa de Bolsa S.A. and set the dates and times for the various proceedings.
Banco de Bogotá Panamá
There were two civil cases pending against the Bank at June 30, 2014. They are described below.
Yin Siu Siu and Compañía los Delfines, S.A. vs. Assicurazioni Generali, S.P.A., STI Servicios, S.A.
Banco de Bogotá Panamá S.A. and Héctor Francisco Perea Montenegro.
This is an ordinary major claim suit being heard by the Third Civil Circuit Court of the First Judicial Circuit
of Panama. The plaintiffs are asking the court to " to sentence jointly and severally Banco de Bogotá (sic),
STI Services S.A. and Assicurazioni Generallo, S.P.A. (strictly liable) and Mr. Hector Francisco Perea
(liable based on breach of duty) to pay damages and other costs incurred due to a traffic accident that
occurred on March 17, 2012, as noted in Resolution No.975 issued by the Department of Transportation
(sic) in the city of Arraiján on June 21, 2012. These damages and costs come to twenty-two thousand one
hundred forty-one US dollars (USD22,141). The evidentiary period was conducted as the final procedural
act to date. It included the presentation of evidence, rebuttal and respective objections to evidence and
rebuttal of evidence. With the proceedings at this stage, the parties are waiting for the court to rule on
admissibility of the evidence produced and submitted and the objections. It is important to note that the
plaintiffs offered no evidence or rebuttal at this stage, apart from what is contained in the complaint filed to
commence the suit. A probable contingency was set by the plaintiff at USD22,141.
Régulo Antonio Sucre Castillo vs. Banco de Bogotá Panamá S.A.
In an ordinary major claim suit heard by the First Civil Circuit Court of the First Judicial Circuit of Panama,
“Banco de Bogota (sic) is ordered to pay Mr. REGULO ANTONIO CASTILLO SUCRE the total amount of
the deposits that existed in Fixed-term Bank Account No.05-002690-1 at August 25, 1986 ". State of the
Process: The special agent of the plaintiff (the plaintiff’s lawyer) filed a motion for collection of professional
fees against his client for non-payment thereof. This incident has not been resolved to date and is the last
procedural step on record.
(Continued)
118
Probable contingency: The total potential liability, including the principal sentence and costs is set at eight
hundred and eight thousand seven hundred eighty-four dollars and four cents (USD808,784.04). In our
opinion, although payment of "damages and interest" is sought, the fact that they are not broken down
renders that claim invalid.
Leasing Bogotá S.A. – Panamá
Management is not aware of any litigation or claim that is likely to have a significantly adverse impact on
the organization’s business, its consolidated financial situation, or its operating earnings.
(32) Risk Management
The risk management process used by the Bank and its subordinates adheres to the guidelines designed
by the senior management of each institution. These, in turn, are consistent with the general rules on
management and administration approved by the Board of Directors.
The Bank and its subordinates have the necessary committees to manage credit, market and liquidity
risks and operational, legal, money laundering and terrorist financing risks, all of which are amply
disclosed in the individual reports on each institution.
(33) Statutory Controls
The Bank complied with all requirements for mandatory cash reserves, own positions, capital adequacy
ratios and mandatory investments during the six months ended June 30, 2014 and December 31, 2013.
(34) Subsequent Events
(a) Procedures are underway to request approval from the respective authorities to merge the operations
of Banco Reformador de Guatemala and Banco de América Central S.A.
(b) Steps are now underway to request approval from the respective authorities to merge the operations
of BBVA Panama and BAC International Bank, Inc. From the purchase date and until the merger is
complete, the acquired company will operate as Banco BAC de Panama S.A.
(Continued)

BANCO DE BOGOTÁ S.A. AND SUBORDINATES Notes to the

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