Bancolombia surges 10% after profit beats analyst estimates

Bancolombia SA, Colombia’s biggest
lender, climbed the most in two weeks in Bogota trading after
third-quarter profit increased 16 percent, topping analyst
estimates.

Net income rose to 367 billion pesos in the third quarter
from 316.7 billion pesos a year earlier, the Medellin-based bank
said in a statement. Gross loans rose 19 percent to 42.3 trillion
pesos, and loans more than 30 days past due remained stable at
3.5 percent, the bank said.

Bancolombia gained the most on Colombia’s benchmark IGBC
index, rising 10 percent to 10,760 pesos at 12:53 p.m. New York
time. The shares have fallen 36 percent this year, while the IGBC
index has dropped 34 percent.

Net income was 20 percent more than the 306.2 billion pesos
estimate of Interbolsa analysts Jose Restrepo and Andres Jimenez.
Operating expenses were lower than expected, the analysts wrote.

“They beat expectations by an ample margin, with more
interest income generation,” Restrepo said in a phone interview
from Medellin.

The bank is likely to continue to report “very good”
results this year, Restrepo said. Next year’s results are less
certain as the economies of Colombia’s biggest trading partners
slow, he said.

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