Grupo Bancolombia

Investor Relations

Frequently Asked Questions about Grupo Bancolombia

Find out here the most frequently asked questions related to the Company, Corporate Governance, financial data, share information and dividends.

Find out here the most frequently asked questions related to the Company, Corporate Governance, financial data, share information and dividends.

About the Company
Where are Bancolombia’s HQ?
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The headquarters of Grupo Bancolombia is located in Medellín, Antioquia and the address is Carrera 48 # 26 - 85.

What are Bancolombia’s sustainability policies?
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Grupo Bancolombia has defined a Sustainability Model that includes policies on procurement, human rights, climate change, financing, investment, stakeholder relations, and social and environmental objectives.


Find more information in Sustainability.

Where can I find more information about the bank's history?
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The merger of Banco de Colombia (founded in 1875) and Banco Industrial (founded in 1875) in 1998 created Bancolombia S.A. Colombia's largest bank, which at that time held 15.7% of the financial sector's total assets. Bancolombia S.A. common shares have been listed on the Colombian Stock Exchange since 1981.


In 1995, one of the most important milestones in the institution's history took place: Banco Industrial de Colombia (BIC) issued 22.4 million preferred shares in the domestic and international markets on the New York Stock Exchange (NYSE).


In the following years, the acquisition of new business lines such as Sufinanciamiento, Corfinsura, Conavi, and Banco Comercial y de Ahorros increased the size and relevance of the bank. In 2005 it became an entity with approximately 10 billion USD in assets, 630 branches, 11,769 employees and 4 million customers.


In 2006, the acquisition of Banagricola and all its subsidiaries was announced through the Bancolombia Panama subsidiary. Following this path, the purchase of HSBC Panama, one of the leading banks in this country took place in 2013, making it the largest acquisition in the history of Grupo Bancolombia. In the same year, Grupo Bancolombia acquired 40% of Grupo Agromercantil Holding in Guatemala through a transaction that had been agreed in 2012. This acquisition served to establish itself as one of the main players in Central America. This positions Grupo Bancolombia as a financial institution with a presence in 10 countries.


Finally, in 2015, Bancolombia S.A. acquired an additional 20% and reached a 60% stake in Banco Agromercantil de Guatemala. In 2020, Bancolombia S.A. entered into a share purchase agreement whereby Bancolombia Panama would obtain 40% of the common shares of Grupo Agromercantil Holding (GAH). GAH owns Financial Conglomerate Agromercantil de Guatemala which includes, among others, Banco Agromercantil de Guatemala (BAM). Upon completion of this transaction, Bancolombia S.A. will own 100% of the GAH common shares.


For more information, please refer to History and evolution.

What are Bancolombia’s lines of business?
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Bancolombia S.A.: through its head office and subsidiaries, Bancolombia S.A. offers a variety of products and services, including savings and investments, financing, mortgage banking, factoring, financial and operating leasing, treasury, cash management, foreign exchange, insurance, brokerage, investment, banking, asset management and trust services.


Fiduciaria Bancolombia S.A.: began its consolidation process through a series of mergers with other trust companies in the country. In 1995 with BIC's trust company (Fidubic) and with Sociedad Fiduciaria Suramericana (Sufiducia). In 1998 Banco de Colombia's subsidiary (Fiducolombia) merged with Fiduciaria Suramericana and with BIC S.A. (Sufibic). For more information, see Fiduciaria.


Valores Bancolombia S.A.: the company's line business includes the purchase, sale, and brokerage of securities. It specializes in capital markets, focusing on solving the needs of individuals, SMEs, companies, and government in relation to investment, financing, and risk management. For more information, please visit Bancolombia Securities.


Renting Colombia: Renting is a company that offers leasing services through which a client can take a vehicle for a determined period and use it as if it were his own property, with total autonomy and control. For more information, please visit Renting Colombia.


SUFI: Sufi is a Bancolombia S.A. brand that specializes in lines of credit for 2 specific products. The first one, loans for the acquisition of a vehicle, motorcycle, or bicycle. On the other hand, SUFI offers loans to support academic studies through financial services for undergraduate and graduate degrees with the possibility of long-term studies abroad. For more information, please see Sufi.


Banca de Inversión Bancolombia S.A.: With over 20 years of experience.It was a product of the merger of Colcorp Corporación Financiera and Banca de Inversión Corfinsura in 2005, Banca de Inversión Bancolombia S.A. has become a leader in the investment banking business in Colombia, with an important regional presence. For more information, please visit Banca de Inversión Bancolombia S.A. (Investment Banking Bancolombia S.A.)


Factoring Bancolombia S.A.: It generates alliances with companies and their corresponding communities to accelerate their growth by optimizing the status of their accounts receivable and payable. For more information, please visit Factoring Bancolombia S.A.
Compañía de financiamiento TUYA S.A.: TUYA is a joint venture between Bancolombia S.A. and Grupo Éxito with 50% of the shares each. It operates in the retail segment offering a variety of products including personal loans, private credit cards, and private franchise cards (in partnership with retailers).

When is the General Shareholders' Meeting?
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Bancolombia's General Shareholders' Meeting is generally held in March each year and is announced in February. For more information on historical General shareholders' meetings and reports, please see Shareholders' Meetings.

Corporate Governance
Who is Bancolombia's independent auditor?
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PriceWaterhouseCoopers PwC Ltda.

Who are the members of the Board of Directors?
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Find information about the Board of Directors in Corporate Governance.

What is Bancolombia’s shareholder structure?
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Find the bank's shareholder structure in Shareholder Structure.

Who are the Senior Managers?
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Information on Senior Management can be found in the Corporate Governance and Senior Management.

Share Information
What is the number of equivalent shares per ADR?
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Bancolombia's ADR is equivalent to 4 preferred shares.

What is an ADR?
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ADRs are U.S. marketable securities issued by a U.S. bank, called a depositary bank, generally representing the capital of a non-U.S. company. ADRs are freely traded on world markets and can be listed on major stock exchanges, including the New York Stock Exchange, NASDAQ, the London Stock Exchange, and the Luxembourg Stock Exchange. ADRs facilitate cross-border trading and can help non-U.S. companies raise capital in global equity offerings or be used as acquisition currency for mergers and acquisitions. ADRs allow non-U.S. companies to make their shares available outside their home markets and enable investors from the U.S. and other countries to easily invest in companies globally. Various ADR structures are available to meet a company's particular capital market needs.


ADRs are publicly available to U.S. investors on a national securities exchange (NYSE or NASDAQ) or over-the-counter (OTC). Global depositary receipts (GDRs), generally issued under Rule 144A and/or Regulation S under the U.S. Securities Act of 1933, are placed privately or offshore and sold only to qualified institutional buyers (QIBs) in the United States or to investors outside the United States. GDRs are typically listed on the London or Luxembourg stock exchanges. BNY Mellon has developed Passport DRs for companies that wish to list their shares as ADRs for local settlement in various markets.

Where can I get more information about ADR?
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You can find more information about Bancolombia's ADR at BNY MELLON .

What are ADR levelsl I, II y III?
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Level I: A sponsored Level I ADR program is the simplest way for non-U.S. companies to access the U.S. capital markets. Level I ADRs are traded in the U.S. through OTC markets with prices reported to the U.S. Financial Industry Regulatory Authority (FINRA), which makes this information publicly available through sources such as Bloomberg, Reuters, and OTC markets. (FINRA), makes this information publicly available through sources such as Bloomberg, Reuters, and OTC markets. In addition, Level I ADRs trade in some markets outside the U.S. Establishment of a Level I program does not require full registration with the U.S. Securities and Exchange Commission (SEC), financial disclosure, or the disclosure of financial information. (SEC), U.S. financial or corporate disclosure beyond that required by the local market or compliance with the U.S. Sarbanes-Oxley Act. A Level I ADR program may allow non-U.S. companies to enjoy the benefits of a U.S. publiclytraded stock without full reporting under the U.S. Securities Exchange Act of 1934. Because Level I ADRs are easy to establish, the most of ADR programs are Level I. To access U.S. investors, many companies start with a Level I program, then upgrade to a Level II or III program.


Levels II and III: companies wishing to list their ADRs on a U.S. exchange, to raise capital or to make a U.S. acquisition using ADRs, establish Level II or III sponsored ADR programs. These ADR programs require registration, disclosure, and SEC reporting. Companies must also comply with the listing requirements of applicable stock exchanges. Structurally, Level II and Level III ADRs are similar and both types are used for listing on a U.S. stock exchange. However, Level III ADR is the term used for a company that raises capital through the issuance of ADRs. Level II and Level III programs can attract significant interest from U.S. investors.

What is the difference between common stock and preferred stock?
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The main difference between preferred stock and common stock is that preferred stock does not grant voting rights to shareholders, while common stock does. Preferred stockholders have priority over a company's income, which means they receive dividends before common stockholders. Common stockholders are last in line when it comes to the company's assets, meaning they will be paid after creditors, ADR holders, and preferred stockholders.


Preferred stockholders are entitled to receive dividends based on the previous fiscal year's earnings, after deducting losses affecting capital and once the amount to be legally set aside for the legal reserve has been deducted, but before creating or accumulating any other reserves, from a minimum preferred dividend equal to one percent (1.00%) per annum of the subscription price of the preferred stock, provided that this dividend is greater than the dividend allocated to common stock. If this is not the case, the dividend will be increased to an amount equal to the dividend per share of common stock. The dividend received by the holders of common shares may not exceed the dividend assigned to the preferred shares.

Are ADR holders entitled to vote?
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ADRs are associated with preferred shares that do not grant shareholders voting rights, while common shares do, at one vote per share of ownership.

Contact information for ADR holders
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Michael Vexler

Sales representative

BNY Mellon - Depositary Receipts

Email: Michael.vexler@bnymellon.com

Tel: (+1) 212-815-2838

What is the ADR custodian bank?
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BNY Mellon is the custodian bank

Where is Bancolombia S.A.’s ADR listing?
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Bancolombia S.A. is listed on the New York Stock Exchange, the world's largest stock exchange by market capitalization. Companies listed on the NYSE can take advantage of a wide range of benefits, including access to capital, enhanced branding and visibility, accountability, and increased liquidity. NYSE-listed securities benefit from the exchange's market quality and high-tech model.

When was Bancolombia S.A. listed on the NYSE?
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Bancolombia S.A. has been listed on the New York Stock Exchange since 1995, becoming the first Colombian company to be listed.

Financial Information
Where can I find the latest financial reports?
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You can find this information in Financial Results.

Who are the Analysts covering Bancolombia S.A.?
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You can find the equity analysts covering the Bank in Analyst Coverage.

What are the Bank's Risk Ratings?
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Find this information in Risk Ratings.

What are the capital requirements for Colombian banks?
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According to capital requirements, financial institutions in Colombia must achieve a minimum solvency ratio (Basic Solvency Risk Index) higher than 4.5%. As a result of the implementation of Basel III, additional requirements were included. First, an additional core equity of 1.5%, second, a 1.5% capital conservation buffer, and lastly, a 1% systemically important buffer. In order to achieve the total solvency ratio of 11.5%, a term of 4 years was granted starting in 2021 for the gradual implementation of the capital buffers and compliance with the new regulatory capital minimums.

What are the Bank's accounting standards?
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Full IFRS. However, the agency that supervises Bancolombia S.A. is the Financial Superintendency of Colombia and requires a modified IFRS standard. Every year, Bancolombia S.A. files the annual 20-F report with the SEC and this is prepared under Full IFRS standards, which do not require accounting reconciliation, as was previously the case under Colombian GAAP.

Dividends
Who do I need to talk to if I haven’t received my dividends?
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Find more information in our Contact section.

What is the company's dividend policy?
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Dividends are decided each year at the General Shareholders' Meeting. management has been interested in maintaining shareholders' purchasing power with positive real dividend growth. Dividend payments have consistently been in the range of 30% to 40% of consolidated earnings. Although there is no strict payout policy, it is important to note that preferred shares receive 1% of their subscription value if the net income of the income statement is positive.

When will dividends be paid for the current year?
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More information on dividend payments can be found in Shares.