Colombia Rating Report............................................................................... CORPORACIÓN FINANCIERA COLOMBIANA S.A. Financial Corporation Technical Committee: October 4th, 2016 Minute number: 1025 Credit Analysts: Andrés Marthá Martínez andres.martha@spglobal.com Rodrigo Fernando Tejada Morales rodrigo.tejada@spglobal.com Page 1 of 13
CORPORACIÓN FINANCIERA COLOMBIANA S.A. Financial Corporation REGULAR REVIEW ISSUER LONG-TERM DEBT AAA SHORT-TERM DEBT BRC 1+ Figures in Colombian Pesos (COP) as of June 30th, 2016 Rating History: Assets: Liabilities: Equity: Net profit: COP10.118.618 COP7.198.526 COP2.920.092 COP249.421 Regular Review Oct./15: Regular Review Oct./14: Initial Rating Nov./08: The financial information within this report is based on the non-consolidated audited financial statements. AAA, BRC 1+ AAA, BRC 1+ AAA, BRC 1+ I. RATIONALE The Technical Committee of BRC Investor Services S.A. SCV in its regular review confirmed its AAA long-term debt and BRC 1+ short-term debt rating on Corporación Financiera Colombiana S.A. (hereinafter Corficolombiana). Business position: Corficolombiana remains as the main financial corporation in Colombia in terms of assets and as one of the financial entities with highest equity. Our rating assesses positively the track record and strength of the corporation s main companies within its respective markets. We consider the strong market position of Corficolombiana s companies as positive within the energy and infrastructure sectors, given that the revenues of those companies are the corporation s main source of income. On the other hand, Corficolombiana s treasury maintains a relevant position as intermediary in the fixed income market based on its important activity within the money market and its active participation in the Market Makers program established by the Ministry of Finance. In our view, the investments performance on the energy and gas businesses, as well as the participation in some of the most important road infrastructure projects in the country, will sustain the leadership of the Corficolombiana s main companies in their markets, highly important for the national economy. We also expect the treasury business will keep its relevance within the fixed income market given its strategic focus on contributing to the funding of the equity investment business through its access to the capital market. Corficolombiana executes its investment strategy through two main lines: 1) equity investment on companies in the real and the financial sectors, whose income come from the profits of these firms. This line is primarily funded with equity, but also with funds raising of long term deposits certificates (CDTs, for its acronym in Spanish); 2) fixed income, which includes treasury and private banking, funded with deposits and passive operations of the money market. Corficolombiana is the leading financial corporation of the Colombian financial system. During the last five years, its market share measured by assets and equity has remained around 84% and 75%, respectively, in the financial corporations sector. Within the credit entities industry, Corficolombiana is in the seventh place in terms of equity as of June 2016. Promigas is the main investment of the corporation and generates 45% of the equity investment income (39% of total revenues). This company leads the gas transportation and distribution markets in Colombia, where it distributes nearly 50% of the country s natural gas. Page 2 of 13
Infrastructure companies follow in importance, representing 37% of equity investment income; these companies have over 20 years of track record participating on important projects of infrastructure development in the country, some of them with high levels of technical complexity, which have had a successful development. Corficolombiana s infrastructure companies have a key role on the development of fourth generation projects through the awarding of four concessions, some of which represent the biggest financing operations in the history of Colombia. Corficolombiana is part of Grupo Aval ( AAA long term debt rating), one of Colombia s most important financial conglomerate. The corporation benefits from several synergies with its parent company, such as the development of technological tools and cost optimization. It also complements its internal control structure through corporate audits which Grupo Aval coordinates. Corficolombiana is a complement of Grupo Aval s strategy as an investment tool on the real sector. Corficolombiana has corporate governance which complies with the market s best practices and is aligned with the guidelines of Grupo Aval that include the implementation of the Sarbanes-Oxley Act (SOX) standards aimed at the adoption of best practices on information disclosure and corporate government. Capital and solvency: Our rating reflects our positive assessment on the equity strength of the corporation as evidenced on the high solvency levels. The investments for the infrastructure companies will raise the double leverage, which implies a more aggressive profile on the capital structure. We consider that the good credit risk profile of the main shareholder and its potential equity support, if required, offsets this weakness and allows Corficolombiana to maintain the highest rating. Corficolombiana maintains excellent equity strength as reflected on its solvency ratio that has remained relatively stable around an average of 34% between June 2011 and June 2016, which is much higher than that of the banking industry (Chart 1). The wide solvency level stems from the continuous reinvestment of earnings by the shareholders, which on average have capitalized 51% between 2013 and 2015, a situation that remained on the first half of 2016 with an earnings capitalization of 74%. We expect the corporation to keep its high solvency levels as long as its internal equity generation is stable and the shareholders continue with a conservative dividends distribution. Our solvency analysis of the corporation also incorporates the adequate quality of its equity given its low dependence on secondary capital instruments and the high representativeness of liquid assets on its balance. Page 3 of 13
Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 CORPORACIÓN FINANCIERA COLOMBIANA S.A. Chart 1 Total solvency ratio 45% 40% 35% 30% 25% 20% 15% 10% Corficolombiana Banking sector Source: Financial Superintendence of Colombia. Estimates: BRC Investor Services S. A. SCV In June 2016, Grupo Aval and its subsidiaries applied in advance the International Financial Reporting Standards (IFRS) 27 and 28, reducing Corficolombiana s book value of equity by 25.3% versus the figure reported in June 2015 under the previous standard, mainly due to the elimination of the valuations of its subsidiaries. The reduction of equity did not affect the regulatory solvency index, but deepened the higher level of double leverage (capital investments/equity) during 2016. The accounting change raised that ratio on 20 percentage points to reach around 140% as of June 2016, similar to that between 2011 and 2012, when the corporation acquired Promigas. Under our criteria, a ratio above 120% means an aggressive leverage profile since an important share of the corporation liabilities will be paid with equity securities. Given the equity requirements projected by the corporation for the infrastructure companies, we expect that double leverage continues to rise and reaches maximum levels at the end of 2016 and 2017 with metrics close to 160%. Going forward, the ratio might decrease, but it will probably remain several years above 120%. Even though this situation means deterioration on the corporation s credit profile, we think Grupo Aval s ( AAA on long-term debt) support mitigates that weakness and allows it to maintain the highest rating. The mismatch between the equity investments and net worth will be funded with the longer term CDTs of the corporation (between three and five years). Even though, in our opinion, the term of these liabilities doesn t cover in an adequate way the required term for equity investments, we consider that the positioning and track record of the corporation s treasury will allow it to keep an adequate renewal of these deposits; thus, it will maintain the financing for the aforementioned mismatch. However, this situation increases the likelihood of a reduction in the corporation s profitability in case the funding cost rises on the moment of renewing such deposits. In our view, the relative stability of the dividends income (cash) of the corporation (7.7% compound annual growth rate between 2010 and 2015) would allow it to maintain a recurring cash flow to support the payment of the debt service which is funding the equity investments. However, the higher leverage and the volatile nature of the equity securities might pressure downwards the corporation s cash generation. We will monitor closely the stability of the dividends flow. On the other hand, one of aspects to follow will still be the 4G infrastructure projects, whose possible deviations might result in higher costs or pressures on the capital or liquidity of the corporation, even though we consider that it has a wide and positive track record on managing risks related to these projects. Page 4 of 13
As of June 2016, 83% of Corficolombiana s technical equity was made of primary equity securities and the rest of secondary equity securities. This indicates an adequate capital quality and a low reliance on secondary equity securities. On the other hand, the corporation s liquid assets include fixed income instruments (90% of which are TES Colombian treasury bonds) with adequate secondary liquidity, a situation which allows it to have an adequate financial flexibility. The ratio between regulatory value at risk (VaR) and Corficolombiana s technical equity was an average of 10% between June 2015 and June 2016, much above its peers 3.2%, a situation that implies a higher exposure to market risk. The high level of this indicator is related to the important volume of investments on the corporation s assets, as well as its relatively high duration since the instruments are concentrated on maturity terms of four to seven years. Profitability: Corficolombiana maintains stable profitability indicators which are better than those of its peers and the overall banking sector. We expect the corporation maintains that strength given that the main companies of its equity investment portfolio have had a good performance despite changes on the economic environment. Corficolombiana s return on equity remained stable on 18,3% as of June 2016, similar to the one registered between 2014 and 2015 when it averaged 18,8% (ratios calculated using comparable figures with IFRS 27 and 28). These levels are higher than those of its peers and the banking sector which reported 7.2% and 17.6% as of June 2016, respectively. Corficolombiana s good profitability reflects the profits of its equity investment portfolio, particularly the performance of the companies operating in the energy and gas and infrastructure sectors, which together represent more than 90% of the corporation s income. The concentration on these sectors means that an adverse situation in any of them might have a negative impact on the corporation s profitability. However, given the nature of the activity of these companies, their profits performance has been stable and has had a relatively low sensibility to the changes in the economic conditions. The development of new 4G concessions will probably give an important boost for the earnings of the infrastructure companies on the next five years. We expect that Corficolombiana s experience allows it to properly mitigate the risks of the building phase of these projects; we consider that the profits of this sector will maintain a good performance on the next few years. In the energy and gas sector we also expect an adequate performance on the earnings since Promigas is on the final phase of important investment projects which will benefit its future performance. The decline of the inflation would also improve Corficolombiana s profitability through better performance of its treasury. The income of the equity investments portfolio are of the highest relevance to Corficolombiana since they represent 87% of its total June 2014 to June 2015 average- followed by treasury income with 9%; the rest corresponds to investment banking fees and trading. The equity investment income grew an annual average of 14% during the same period, while those of treasury shown high volatility with -61.7% due to the increase in the interest rates and the subsequent raise on the funding cost of the corporation, deteriorating the margins of the treasury business. Chart 2 shows that the composition of the equity investment portfolio earnings has remained relatively stable, with the energy and gas and infrastructure sectors as the most important ones. Promigas is the main company in the portfolio with 79% of the total generated by the energy and gas sector as of June 2016. For the next few years, we expect the infrastructure share grows as the earnings of the 4G concessions drive these companies results to have a higher growth rate compared to that of the energy and gas. It is also likely that the hotel sector increases its share on de income due to the return on the investments made in the last few years which have been already completed. Page 5 of 13
Chart 2 Share of the equity investment income by sector 5% 35% 13% 4% 31% 5% 4% 33% 37% 58% 52% 56% 57% -2% -1% Jun-13 Jun-14 Jun-15 Jun-16 Power and gas Infrastructure Hotels Financial Agribusiness Other Source: Financial Superintendence of Colombia. Estimates: BRC Investor Services S. A. SCV The implementation of the IFRS 27 and 28 generated several changes and derived from that Corficolombiana s net income on June 2016 cannot be compared against to what was reported before that date on the public information provided by the Supervisor. Thus, our profitability analysis is based on the comparable financial statements under NIIC 27 and 28 provided by the corporation. Corficolombiana earnings reached $249.421 billion Colombian pesos (COP) as of June 2016, which means a 2.5% increase over the same period of 2015. The return on equity decreased slightly to 18.3% from 18.4%, while the return on assets went to 5% from 6.4% on the same period. Both metrics are better than those of its peers and the banking sector. Funding and liquidity: Corficolombiana s deposits are highly concentrated on the biggest depositors and a show low participation of retail investors. The corporation has a liquidity management in accordance to its liabilities since it keeps a high level of liquid assets in relation to its deposits. Corficolombiana s fund raising has traditionally focused on financial sector investors and state entities, segments which, collectively, have a share of over 90% of CDTs. This situation has resulted in high concentration levels, given that the 20 main depositors had a share of nearly 70% of total CDTs, a percentage which has remained stable during the last year. In our view, funds from wholesale investors can be more sensitive to stress scenarios with the potential of generating higher volatility on the funding sources compared with other entities with higher share of retail investors. However, we consider this risk is mitigated by the high ratio of liquid assets to deposits that the corporation has traditionally had, given that more than 90% of the fixed income portfolio is concentrated on TES, which have an adequate secondary liquidity. Page 6 of 13
Chart 3 Liabilities structure 6% 6% 20% 12% 12% 15% 55% 54% 21% 46% 46% 62% 43% 34% 34% 52% 31% 35% 3% 31% 35% 6% 6% 6% 10% 7% 4% 7% Dec-12 Dec-13 Dec-14 Dec-15 Jun-16 Peers Sector Savings Checking CDT Financial entities Money market passive operations Debt instruments Source: Financial Superintendence of Colombia. Estimates: BRC Investor Services S. A. SCV Chart 3 shows Corficolombiana s funding structure has remained relatively stable. Repos and passive simultaneous operations remain as the main segment; they leverage the securities trading activity on public debt instruments in accordance with the corporation s participation on the Market Makers program of the Ministry of Finance and Public Credit. CDTs are the second most important segment of its liabilities; its rollover index remained stable with a 60% average during the last year. The maturity of these instruments was also stable: 64% have a maturity higher than a year as of June 2016. CDTs with maturities over three years represented 17%, slightly below 20% of the previous year. Chart 4 shows the corporation has maintained a liquid assets to deposits ratio close to 50% during the last year, high above that of the banking sector which is near to 18%. Despite of this, the 30 days ratio of the regulatory liquidity risk index has been relatively low on a level close to 2x during the last year, while in other credit entities that we rate it varies between 2,5x and 4x. The low regulatory liquidity risk index is related to the representativeness of the passive positions of the money market characterized by having a very short term. The corporation maintained a positive cash flow generation of COP212.9 billion in 2015 and COP300.1 billion 2014; this shows and adequate capacity of covering the liabilities requirements through dividends from the subsidiaries, a segment which has represented an average 80% of the corporation s cash income between 2013 and 2015. In 2016, lower dividends from the subsidiaries have reduced the corporation s cash generation compared to the previous year. This is because of the higher liquidity requirements of the infrastructure companies, as well as the increase on the funding costs and lower profitability of the fixed income investments; despite of this, the cash generation has remained positive. Page 7 of 13
Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 CORPORACIÓN FINANCIERA COLOMBIANA S.A. Chart 4 Liquid assets / Deposits 80% 70% 60% 50% 40% 30% 20% 10% Corficolombiana Banking sector Source: Financial Superintendence of Colombia. Estimates: BRC Investor Services S. A. SCV Risk management and control mechanisms: Corficolombiana has a strong risk management structure to handle its own risks and the ones of its companies. Corficolombiana has the proper infrastructure and tools to control the different risks to which the parent company and its subsidiaries are exposed as a unit. Besides, it complies with all the regulatory requirements and has defined early alert mechanisms which prevent defaults. Credit risk management focuses on the counterparty operations which the treasury carries out. The risk area assesses and classifies the counterparties according to its liquidity, solvency, coverage and asset quality. With this classification, it approves the operation quotas; the limits for each category have to be previously approved by the Executive Vice-presidency. In order to warrant and monitor the limits compliance, the corporation has tools to control the on line quotas. The market risk policies are contained in a manual which defines the main schemes and risk tolerance on the investments, as well as the terms and limits which are approved by each instance. Each month, the Board of Directors receives and evaluates reports about the adherence to the defined limits. The Assets and Liabilities Committee defines the corporation s fund raising strategies and assesses the liquidity risk policies. Liquidity management is based on the analysis of the flows and internal short term and long term indicators with its respective weekly limits, which in turn are monitored monthly by the Board of Directors. On the last year, new limits were set to decrease the fund raising concentration by economic groups, which might translate to better diversification of the deposits. Corficolombiana has an Operational Risk Management System which complies with the regulatory requirements. The corporation implements instruments, methodologies and procedures to manage effectively the operational risk. It also monitors and follows the development of the stages of the Operational Risk Management System and continuously improves the methodologies it uses for its management. The identified risks are segregated by area and its level of severity. Afterwards it implements corrective actions to avoid its recurrence in the future; this procedure seeks to strengthen and redesign the controls, which allow the organization to improve the processes of the business. The corporation has adopted the necessary mechanisms to avoid the risks of money laundering and funding of terrorism according to what s defined on the current norms. For this, it has a seven-step Money- Page 8 of 13
Laundering and Terrorism-Financing Risk Management System, which go from the definition and record of risk factors to the monitoring and implementation of improvement actions once it has occurred a risk event. The procedures are defined within the Money-Laundering and Terrorism-Financing Risk Management System manual and its compliance is the responsibility of the Compliance Unit, which is led by a delegate official to supervise and report to the Board of Directors. Technology: Corficolombiana has adequate technological infrastructure and business continuity plans to support its operation. Corficolombiana has an adequate technological system to manage its operations and meet the needs of its financial subsidiaries. Systems are supported by a last generation virtual platform with a production data center and another of contingency. The corporation tests periodically its business continuity plan, carrying out operations on its alternate control center. Tests are documented and the results are analyzed to find weak spots in order to carry out the proper corrections if necessary. Contingencies: As of June 2016, Corficolombiana presented lawsuits classified as eventual or likely and with an amount lower than 0,01% of its net worth. These lawsuits do not represent a threat for the corporation s financial stability. II. OPPORTUNITIES AND THREATS What might lead us to affirm the rating BRC identified the following aspects which might lead us to affirm the current rating: The affirmation of Grupo Aval s rating. The maintenance of solvency levels enough to support its equity investments growth. The stability of the income generation of the equity income portfolio. What could lead us to downgrade the rating BRC has identified the following follow-up aspects that could negatively affect the current rating: The downgrade of Grupo Aval s rating. The deterioration of the liquidity position and increase on the double leverage above our expectations. The sharp deterioration on the profitability. The technical visit for the rating process was conducted having enough opportunity given the availability of the entity and the delivery of information, which was provided within the stated periods of time and according to the requirements of BRC Investor Services. BRC Investor Services does not perform audit functions; therefore, the entity s management takes full responsibility for the integrity and truthfulness of all the provided information, which has been used as the basis for the preparation of this report. On the other hand, BRC Investor Services has reviewed the available public information and compared it with the information provided by the entity. Should there be any doubts about any of the indicators included herein, you may want to check the glossary available at www.brc.com.co Page 9 of 13
For definitions of our ratings, please visit www.brc.com.co or click here. The financial information included herein is based on the audited financial statements as of the past three years and the unaudited financial statements as of June 2016. Page 10 of 13
III. FINANCIAL STATEMENTS Datos en COP Millones BALANCE GENERAL dic-13 dic-14 dic-15 jun-15 jun-16 Variación % dic-14 / dic-15 Activos Variación % jun-15 / jun-16 Variación % Variación % Pares jun- Sector jun- 15 / jun-16 15 / jun-16 Disponible 774.779 70.132 1.249.410 555.286 1.227.662 1681,5% 121,1% 85,0% 110,3% Posiciones activas del mercado monetario 318.916 334.825 524.123 994.310 440.002 56,5% -55,7% 248,3% -28,7% Inversiones 7.976.247 5.516.585 8.843.355 7.841.449 8.177.441 60,3% 4,3% -1,7% 0,7% Valor Razonable 1.158.675 561.692 328.338 497.555 279.755-41,5% -43,8% -24,3% -34,7% Instrumentos de deuda 694.174 130.843 232.969 462.550 230.837 78,1% -50,1% -33,1% -42,3% Instrumentos de patrimonio 464.501 430.849 95.369 35.004 48.918-77,9% 39,7% 59,4% 50,3% Valor Razonable con cambios en ORI 3.179.320 4.195.615 806.459 895.805 828.760-80,8% -7,5% -55,5% -12,9% Instrumentos de deuda 92.748 823.155 92.572 255.213 82.129-88,8% -67,8% -67,8% Instrumentos de patrimonio 3.086.572 3.372.460 713.887 640.592 746.631-78,8% 16,6% -55,5% 5,6% Costo amortizado 115.743 93.293 55.464 62.400 69.030-40,5% 10,6% -88,3% 9,6% En subsidiarias, filiales y asociadas - - 3.722.595 3.428.361 3.331.957-2,8% -20,9% -4,5% A variación patrimonial - - 6.655 17.052 5.046-70,4% -100,0% -70,7% Entregadas en operaciones 3.538.778 694.434 3.673.833 2.782.347 3.405.652 429,0% 22,4% -40,1% 20,4% Mercado monetario - - 3.664.637 2.695.050 3.336.637 23,8% -65,4% 21,4% Derivados - - 9.196 87.297 69.015-20,9% 65,2% -6,4% Derivados - - 247.391 156.032 253.838 62,7% 56,0% 61,9% Negociación - - 247.391 156.032 253.838 62,7% 56,0% 61,9% Cobertura - - - - - Otros - - 38.032 37.284 38.804 4,1% -35,6% 3,5% Deterioro 16.269 28.448 35.413 35.386 35.402 24,5% 0,0% -100,0% -0,1% Cartera de créditos y operaciones de leasing - - - - - 10,4% 10,4% Comercial - - - - - 10,5% 10,5% Consumo - - - - - Vivienda - - - - - Microcrédito - - - - - Deterioro - - - - - 13,7% 13,7% Deterioro componente contraciclico - - - - - 14,7% 14,7% Otros activos 1.433.088 1.979.231 1.022.309 969.434 273.513-48,3% -71,8% 80,2% -59,6% Bienes recibidos en pago 10.451 6.962 121 26.859 - -98,3% -100,0% -100,0% Bienes restituidos de contratos de leasing - - - - - Otros 1.422.637 1.972.269 1.022.189 942.575 273.513-48,2% -71,0% 80,2% -58,5% Total Activo 10.503.029 7.900.772 11.639.197 10.360.478 10.118.618 47,3% -2,3% 12,5% 0,0% Pasivos Depósitos 2.560.408 1.922.098 3.203.592 2.390.189 3.055.722 66,7% 27,8% 53,3% 29,0% Ahorro 383.702 209.143 785.182 355.006 487.443 275,4% 37,3% 662,9% 41,6% Corriente - - - - - Certificados de depósito a termino (CDT) 2.171.853 1.709.908 2.390.390 2.028.799 2.550.352 39,8% 25,7% 40,0% 26,5% Otros 4.853 3.046 28.019 6.384 17.928 819,7% 180,8% 180,8% Créditos de otras entidades financieras - 23.925 - - - -100,0% Banco de la República - - - - - Redescuento - 23.925 - - - -100,0% Créditos entidades nacionales - - - - - Créditos entidades extranjeras - - - - - Operaciones pasivas del mercado monetario 3.511.992 695.162 3.535.032 2.701.546 3.310.222 408,5% 22,5% -80,6% 19,6% Simultaneas 2.197.818 514.355 3.235.916 2.173.975 2.577.708 529,1% 18,6% -79,9% 15,2% Repos 1.314.175 180.807 299.115 527.571 732.514 65,4% 38,8% -100,0% 38,1% TTV s - - - - - Titulos de deuda - - - - - Otros Pasivos 374.419 670.616 940.343 1.359.270 832.581 40,2% -38,7% 7,5% -30,6% Total Pasivo 6.446.819 3.311.800 7.678.966 6.451.004 7.198.526 131,9% 11,6% 3,8% 11,0% Patrimonio Capital Social 2.081 2.141 23.281 2.188 2.268 987,4% 3,7% 2,9% 2,9% Reservas y fondos de destinación especifica 2.661.285 2.710.174 693.105 657.891 637.055-74,4% -3,2% 13,5% 4,2% Reserva legal 1.835.045 2.062.497 41.809 41.809 41.809-98,0% 0,0% 14,4% 13,4% Reserva estatutaria - - - - - Reserva ocasional 826.240 647.677 651.295 616.081 595.245 0,6% -3,4% -93,1% -4,1% Otras reservas - - - - - Fondos de destinación especifica - - - - - Superávit o déficit 1.148.103 1.491.777 3.093.977 2.924.299 2.481.981 107,4% -15,1% 62,1% -11,0% Ganancias/pérdida no realizadas (ORI) (82.376) (47.878) 779.579 782.996 (22.218) -1728,3% -102,8% 16,0% -93,9% Prima en colocación de acciones - - 2.363.795 2.201.156 2.499.709 13,6% 119,6% 17,4% Ganancias o pérdidas 244.741 234.880 149.868 325.096 (201.212) -36,2% -161,9% 45,3% -130,6% Ganancias acumuladas ejercicios anteriores - - 221-26.947 26,9% 71,5% Pérdidas acumuladas ejercicios anteriores - - - - - 36,6% 36,6% Ganancia del ejercicio 244.741 234.880 149.647 325.096 249.421-36,3% -23,3% 32,8% -17,4% Pérdida del ejercicio - - - - - -35,5% -35,5% Ganancia o pérdida participaciones no controlada - - - - - Resultados acumulados convergencia a NIIF - - - - (477.580) -0,6% 3174,3% Otros (0) 150.001 0 0 (0) -100,0% -200,0% -200,0% Total Patrimonio 4.056.210 4.588.972 3.960.231 3.909.474 2.920.092-13,7% -25,3% 15,6% -14,5% Page 11 of 13
ESTADO DE RESULTADOS dic-13 dic-14 dic-15 jun-15 jun-16 Variación % dic-14 / dic-15 Variación % jun-15 / jun-16 Variación % Variación % Pares jun- Sector jun- 15 / jun-16 15 / jun-16 Cartera comercial - - - - - 81,8% 81,8% Cartera consumo - - - - - Cartera vivienda - - - - - Cartera microcrédito - - - - - Otros 36.409 39.843 - - - Ingreso de intereses cartera y leasing 36.409 39.843 - - - 81,8% 81,8% Depósitos 136.387 140.702 152.031 66.742 129.947 94,7% 94,7% 370,4% 98,7% Otros 88.145 90.308 135.328 51.619 112.033 117,0% 117,0% -22,4% 91,5% Gasto de intereses 224.532 231.010 287.359 118.360 241.980 104,4% 104,4% 8,7% 95,3% Ingreso de intereses neto (188.123) (191.167) (287.359) (118.360) (241.980) 104,4% 104,4% -260,9% 96,4% Gasto de deterioro cartera y leasing - - 33.229 13 4.342 33452,2% 33452,2% 357,0% 1129,7% Gasto de deterioro componente contraciclico - - - - - -100,0% -100,0% Otros gastos de deterioro 368 12.596 - - - Recuperaciones de cartera y leasing 10 0 567 404 113-72,1% -72,1% 49965,2% -14,2% Otras recuperaciones 14.544 14.757 0 0 0-88,0% -88,0% 34,1% 33,7% Ingreso de intereses neto despues de deterioro y recuperaciones (173.937) (189.005) (320.020) (117.969) (246.210) 108,7% 108,7% -163,5% 101,2% Ingresos por valoración de inversiones 699.784 999.935 4.631.344 1.852.375 1.725.778-6,8% -6,8% 71,1% 12,1% Ingresos por venta de inversiones 592.431 1.060.043 88.904 56.827 62.565 10,1% 10,1% 14,0% 12,0% Ingresos de inversiones 1.292.215 2.059.978 4.720.248 1.909.202 1.788.343-6,3% -6,3% 66,3% 12,1% Pérdidas por valoración de inversiones 440.563 832.635 4.556.828 1.781.192 1.515.472-14,9% -14,9% 69,9% 5,1% Pérdidas por venta de inversiones 517.488 1.077.039 60.088 39.273 23.299-40,7% -40,7% -46,4% -44,3% Pérdidas de inversiones 958.051 1.909.673 4.616.915 1.820.466 1.538.771-15,5% -15,5% 57,5% 2,9% Ingreso por método de participación patrimonial - - 249.063 113.264 307.032 171,1% 171,1% -83,8% 108,8% Dividendos y participaciones 488.883 535.937 293.570 209.058 17.494-91,6% -91,6% 162,1% -87,4% Gasto de deterioro inversiones - - - - - Ingreso neto de inversiones 823.047 686.241 645.966 411.058 574.097 39,7% 39,7% 69,7% 44,3% Ingresos por cambios 151.570 1.653.844 878.814 248.346 2.171.769 774,5% 774,5% 94,8% 712,7% Gastos por cambios 119.814 1.544.148 710.517 193.548 2.207.279 1040,4% 1040,4% 572,3% 1020,2% Ingreso neto de cambios 31.756 109.696 168.296 54.798 (35.510) -164,8% -164,8% -165,6% -165,0% Comisiones, honorarios y servicios 9.815 21.841 22.014 12.465 14.965 20,1% 20,1% -46,9% -15,6% Otros ingresos - gastos (6.052) 10.885 40.882 (3.935) (2.986) -24,1% -24,1% -587,7% -246,2% Total ingresos 684.628 639.658 557.138 356.418 304.357-14,6% -14,6% 39,6% -2,8% Costos de personal 37.414 39.546 41.095 19.658 23.517 19,6% 19,6% 17,1% 18,0% Costos administrativos 61.707 63.081 22.293 10.193 11.959 17,3% 17,3% 24,0% 19,3% Gastos administrativos y de personal 99.121 102.626 63.388 29.851 35.476 18,8% 18,8% 17,8% 18,2% Multas y sanciones, litigios, indemnizaciones y demandas 42 7 0-0 81,5% 81,8% Otros gastos riesgo operativo 111-26 26 - -100,0% -100,0% -100,0% Gastos de riesgo operativo 152 7 26 26 0-98,7% -98,7% 81,5% 44,0% Depreciaciones y amortizaciones 3.482 3.138 2.583 1.466 1.059-27,8% -27,8% -36,3% -33,7% Total gastos 102.755 105.771 65.997 31.343 36.535 16,6% 16,6% 13,9% 15,0% Impuestos de renta y complementarios 24.164 32.311 5.400 (5.211) 12.421-338,3% -338,3% 134,0% 418,6% Otros impuestos y tasas - - 10.998 5.190 5.980 15,2% 15,2% -10,8% -2,9% Total impuestos 24.164 32.311 16.398 (21) 18.400-87637,8% -87637,8% 67,1% 138,6% Ganancias o pérdidas 557.709 501.576 474.743 325.096 249.421-23,3% -23,3% 55,1% -16,9% *As a result of the implementation of accounting principles for the preparation and presentation of financial statements according to the international financial reporting standards (IFRS), as from 2015, figures in the financial statements cannot be compared to those disclosed under the accounting standards applicable until 2014 (COLGAAP). Page 12 of 13
INDICADORES dic-13 dic-14 dic-15 jun-15 jun-16 jun-15 jun-16 jun-15 jun-16 PARES SECTOR Rentabilidad ROE (Retorno Sobre Patrimonio) 15,6% 11,8% 11,9% 13,4% 10,3% 4,8% 7,2% 11,3% 9,4% ROA (Retorno sobre Activos) 5,8% 4,9% 4,5% 5,7% 3,5% 3,1% 4,5% 5,2% 3,6% Ingreso de intereses neto / Ingresos -27,5% -29,9% -51,6% -33,2% -79,5% -2,7% 3,1% -26,6% -53,7% Ingresos Netos de Intereses / Cartera y Leasing Bruto -0,8% 1,2% -38,4% -68,3% Gastos Provisiones / Cartera y Leasing bruto 1,2% 1,3% 1,2% 1,3% Rendimiento de la cartera 10,5% 8,6% 19,9% 8,2% Rendimiento de las inversiones 9,7% 7,9% 6,8% 7,5% 7,7% 6,5% 10,3% 7,3% 8,1% Costo del pasivo 3,7% 3,9% 4,3% 4,1% 5,4% 2,6% 2,8% 3,9% 5,1% Eficiencia (Gastos Admin/ MFB) 14,5% 16,0% 11,4% 8,4% 11,7% 41,6% 35,1% 15,6% 19,0% Capital Relación de Solvencia Básica 21,9% 25,3% 26,3% 28,1% 26,7% 95,2% 118,2% 36,8% 38,5% Relación de Solvencia Total 29,4% 34,2% 30,8% 29,5% 32,4% 95,9% 119,6% 37,0% 43,6% Patrimonio / Activo 38,6% 58,1% 34,0% 37,7% 29% 74,2% 76,2% 43,3% 37,1% Quebranto Patrimonial 194884,2% 214343,7% 17010,6% 178698,0% 128732,2% 215,3% 241,7% 814,4% 676,1% Activos Productivos / Pasivos con Costo 149,4% 224,2% 157,6% 184,4% 154,7% 924,6% 1029,7% 211,7% 180,2% Activos improductivos / Patrimonio+Provisiones 35,3% 43,1% 25,8% 24,8% 9,4% 6,0% 9,4% 19,8% 9,4% Riesgo de Mercado / Patrimonio Técnico 11,9% 8,6% 10,4% 12,5% 10,9% 2,5% 1,8% 9,5% 7,7% Liquidez Activos Liquidos / Total Activos 14,9% 13,0% 13,5% 12,3% 15,2% 33,4% 33,1% 15,5% 18,3% Activos Liquidos / Depositos y exigib 61,0% 53,3% 49,2% 53,3% 50,4% 549,4% 399,7% 76,0% 69,4% Cartera Bruta / Depositos y Exigib 0,0% 0,0% 0,0% 0,0% 0,0% 275,1% 198,2% 12,6% 10,8% Cuenta de ahorros / Total Pasivo 6,0% 6,3% 10,2% 5,5% 6,8% 0,5% 3,7% 5,2% 6,6% Cuentas Corrientes / Total Pasivo 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% CDT s / Total pasivo 33,7% 51,6% 31,1% 31,4% 35,4% 23,1% 31,1% 30,9% 35,1% Redescuento / Total pasivo 0,0% 0,7% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% Crédito entidades nacionales / total pasivo 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% Crédito entidades extranjeras / total pasivo 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% Op. pasivas del mco monetario / total pasivo 54,5% 21,0% 46,0% 41,9% 46,0% 16,5% 3,1% 40,1% 43,2% Distribución de CDTs por plazo Emitidos menor de seis meses 17,7% 0,4% 2,3% 2,8% 2,7% 0,0% 0,0% 2,6% 2,5% Emitidos igual a seis meses y menor a 12 meses 14,6% 6,7% 28,8% 21,9% 17,1% 0,0% 0,0% 20,7% 16,1% Emitidos igual a a 12 meses y menor a 18 meses 11,4% 16,2% 13,7% 10,8% 26,2% 0,2% 2,7% 10,3% 25,4% Emitidos igual o superior a 18 meses 56,3% 76,7% 55,2% 64,5% 54,1% 17,7% 19,6% 66,3% 56,0% V. MEMBERS OF THE TECHNICAL COMMITTEE The resumes of the members of the Technical Rating Committee are available on our Website www.brc.com.co A risk rating issued by BRC Investor Services S.A. SCV is a technical opinion and it is not intended to be a recommendation to purchase, sell or hold a certain investment and/or securities, nor does it involve a payment bond, but an assessment of the likelihood that its capital and yields may be timely settled. The information contained herein has been taken from sources assumed to be reliable and accurate. Therefore, we take no responsibility for any mistakes or omissions or for results derived from the use of this information. Page 13 of 13