Bancolombia Announces Consolidated Financial Results for the Quarter Ended March 31, 2008

MEDELLIN, Colombia, May 7 /PRNewswire-FirstCall/ -- Today, BANCOLOMBIA S.A. ("BANCOLOMBIA" or the "Bank") (NYSE:CIB) announced its financial results for the first quarter of fiscal year 2008, ended March 31, 2008.(1)

SUMMARY:

During the quarter ended March 31, 2008 ("1Q08") BANCOLOMBIA recorded net income of Ps. 253.9 billion, an increase of 23.0% as compared to the pro forma Ps. 206.4 billion for the quarter ended March 31, 2007 ("1Q07"). This increase was mainly driven by:

-- Net interest income that amounted to Ps. 796.4 billion in 1Q08,
resulting in an increase of 29.2% as compared to the pro forma figures
for 1Q07.
-- Net fees and income from services that amounted to Ps. 306.9 billion in
1Q08, representing an increase of 15.4% as compared to the pro forma
figures for 1Q07.
-- Other operating income that amounted to Ps. 134.7 billion in 1Q08,
representing an increase of 317.1% as compared to the pro forma figures
for 1Q07.
-- Total operating expenses that amounted to Ps. 584.1 billion in 1Q08.
This represents an increase in total operating expenses of 0.4% as
compared to the quarter ended December 31 2007 ("4Q07") and 9.8% as
compared to the pro forma figures for 1Q07.
-- The Bank's efficiency ratio amounted to 48.5% for 1Q08. Efficiency is
measured as the ratio between operating expenses and net operating
income. The efficiency ratio for 1Q08 compares favorably to the 59.9%
pro forma efficiency ratio for 1Q07.

The operating results for 1Q08 were partially off-set by:

-- Provisions for loan and accrued interest losses that amounted to
Ps. 193.9 billion for 1Q08. This represents an increase of 99.7% when
compared to the pro forma figures for 1Q07.
-- Income tax expense for 1Q08 that amounted to Ps 156.9 billion. This
represents an increase of 14.4% as compared to 4Q07 and 68.8% as
compared to the pro forma figures for 1Q07.

As of March 31, 2008, BANCOLOMBIA's net loans totaled Ps. 36,607 billion, increasing 21.0% as compared to the pro forma Ps. 30,256 billion as of March 31, 2007. The lower loan growth rate correlates with the higher interest rates implemented by the Colombian Central Bank (the "Central Bank") as part of a more restrictive monetary policy intended to maintain sustainable long term growth for the Colombian economy.

BANCOLOMBIA's ratio of past due loans to total loans as of March 31, 2008 increased to 3.4% as compared to 2.9% in 4Q07 and to 2.9% in 1Q07. An increased number of delinquencies during 1Q08 affected this ratio.

(1) This report corresponds to the consolidated financial statements of BANCOLOMBIA and its affiliates of which it owns, directly or indirectly more than 50% of the voting capital stock. These financial statements have been prepared in accordance with generally accepted accounting principles in Colombia and the regulations of Superintendency of Finance in Colombia, collectively COL GAAP. BANCOLOMBIA maintains accounting records in Colombian pesos, referred to herein as "Ps.". Certain monetary amounts, percentages and other figures included in this report have been subject to rounding adjustments. There have been no changes to the Bank's principal accounting policies in the quarter ended March 31, 2008. The statements of income for the quarter ended March 31, 2008 are not necessarily indicative of the results for any other future interim period. For more information, please refer to the Bank's filings with the Securities and Exchange Commission, which are available on the Commission's website at www.sec.gov.

This report contains pro forma figures for 1Q07. The unaudited pro forma combined condensed financial statements are provided for illustrative purposes only and do not purport to represent what the actual consolidated results of operations or the consolidated financial position of BANCOLOMBIA would have been, nor are they necessarily indicative of future consolidated results of operations or consolidated financial position. These pro forma financial statements reflect certain assumptions, including (i) that the acquisition of Banagricola S.A. ("BANAGRICOLA") was consummated on June 30, 2006, while it in fact occurred in May 2007, and (ii) that the Bank's capital structure at June 30, 2006 was the same as the one present at July 31, 2007. The unaudited pro forma financial statements do not include the realization of cost savings from operating efficiencies, revenue synergies or other restructuring costs resulting from or expected to result from the acquisition of BANAGRICOLA.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties; consequently, there are or will be factors, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products by other companies, lack of acceptances of new products or services by our targeted customers, changes in business strategy and various others factors, that could cause actual results to differ materially from those indicated in such statements. We do not intend, and do not assume any obligation, to update these forward-looking statements. Certain monetary amounts, percentages and other figures included in this report have been subject to rounding adjustments.

Any reference to BANCOLOMBIA means the Bank together with its affiliates, unless otherwise specified.

Representative Market Rate: April 1, 2008 Ps. 1,834.96 US$ 1. Average Representative Market Rate March 2008 Ps. 1,913.42 US$ 1.

First Call Analyst:
FCMN Contact: jmosquer@bancolombia.com.co

Source: Bancolombia S.A.

CONTACT: Sergio Restrepo, Executive VP, +011-574-5108668, or Jaime A.
Velasquez, Financial VP, +011-574-5108666, or Juan Esteban Toro, IR Manager,
+011-574-5108866, all of Bancolombia/

Web site: http://www.bancolombia.com.co/

2008-05-07 18:29:26 0355889 PRNEWSWIRE