BANCOLOMBIA S.A. (NYSE: CIB; BVC: BCOLOMBIA, PFBCOLOM) Reports Consolidated Net Income of COP 446 Billion for the First Quarter of 2012 (COP 523 per Share - USD 1.17 per ADR), Which Represents an Increase of 27% Compared to the Same Quarter Last Year

MEDELLIN, Colombia, May 9, 2012 /PRNewswire/ -- Today, BANCOLOMBIA S.A. ("Bancolombia" or "the Bank") announced its earnings results for the first quarter of 2012.

For the quarter ended March 31, 2012 ("1Q12"), Bancolombia reported consolidated net income of COP 446 billion, or COP 523 per share - USD 1.17 per ADR, which represents a decrease of 12% as compared to the results for the quarter ended December 31, 2011 ("4Q11") and an increase of 27% as compared to the results for the quarter ended on March 31, 2011 ("1Q11").

Bancolombia ended 1Q12 with COP 84,237 billion in assets, 1% lower than those at the end of 4Q11 and 18% greater than at the end of 1Q11. At the same time, liabilities totaled COP 73,805 billion, decreasing 3% as compared to the figure presented in 4Q11 and increased 16% as compared to 1Q11 (1).

• Net interest income increased 27% compared to 1Q11 and 11% compared to 4Q11. These increases are the result of loan growth coupled with a mild recovery of the net interest margin, which ended the period at 6.2%.
• Net loans increased 20% compared to 1Q11. This variation is in line with the current loan demand in Colombia, although it gets affected by the COP appreciation versus USD during the last 12 months.  
• Profitability. The annualized return on equity ("ROE") for 1Q12 was 18.1%, which represents an increase from the 17.6% reported in 1Q11. This ROE was generated over a higher equity, result of the COP 1,680 billion of primary capital issued by the bank in February 2012.
• Past due loans as a percentage of total loans continues being low. Past due loans as a percentage of total loans were 2.7%. Loan deterioration during 1Q12 was COP 407 billion, and net provision charges for past due loans and foreclosed assets totaled COP 198 billion, which represents 1.3% of gross loans when annualized.
• The balance sheet remains strong. Loan loss reserves represented 4.7% of total loans and 175% of past due loans at the end of 1Q12. The capital adequacy ratio ended the quarter at 15.5% (Tier 1 of 12%).

Contact Information:

Bancolombia's Investor Relations

Phone: (574) 4041837 / (574) 4041838

E-mail: [email protected]

Alejandro Mejia (IR Manager) / David Olano (Analyst)

Website: http://www.grupobancolombia.com/investorrelations/

(1) This report corresponds to the consolidated financial statements of BANCOLOMBIA S.A. ("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 Superintendencia Financiera de Colombia, collectively COL GAAP. BANCOLOMBIA maintains accounting records in Colombian pesos, referred to herein as "Ps." or "COP". 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, 2012. The statements of income for the quarter ended March 31, 2012 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.

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, 2012 $1792.07 = US$ 1

SOURCE BANCOLOMBIA S.A.