Colombia’s largest bank, Bancolombia, said Monday its
second-quarter net profit fell 33% from a year earlier to 253 billion
Colombian pesos (US$126 million).
The Medellin-based bank attributed the decline to greater provisions for bad loans, which rose 43% to COP345 billion.
Chief Executive Jorge Londono had anticipated the increase in provisions on the balance sheet in an interview two weeks ago.
Bancolombia’s second-quarter net profit fell short of the median
forecast of COP301 billion expected by five analysts polled by Dow
The bank’s interest income rose 11% to COP1.65 trillion, and its revenues from fees and services rose 27% to COP380 billion.
The bank’s total loan portfolio rose 14% compared with the end of
the second quarter 2008 to COP44.71 trillion. Londono said the loan
portfolio is likely to rise 10% or more this year.
The bank’s New York-traded shares rose 2.6% on Monday to US$32.93. (Dow Jones)