Profile: Bancolombia SA (CIB.N)
24 Mar 2017
Bancolombia S.A. (Bancolombia), incorporated on November 22, 1984, is a financial institution, with presence in various jurisdictions, such as Colombia, Panama, El Salvador, Puerto Rico, Guatemala, the Cayman Islands and Peru. The Bank is engaged in providing a range of financial products and services to a diversified individual, corporate, and government customer base throughout Colombia, Latin America and the Caribbean region. The Bank manages its business through 10 segments: Banking Colombia, Banking Panama, Banking El Salvador, Leasing, Trust, Investment Banking, Brokerage, Off Shore and All other. The Bank delivers its products and services through its regional network comprising Colombia's non-Government owned banking network, El Salvador's financial conglomerate by gross loans, Guatemala's bank, Panama's bank and off-shore banking subsidiaries in Panama, Cayman and Puerto Rico, as well as subsidiaries in Peru. The Bank and its subsidiaries offer Savings And Investment, Ahorro A La Mano, Financing, Mortgage Banking, Factoring, Financial and Operating Leases, Capital Markets, eTrading, Cash Management, Foreign Currency, Bancassurance, Investment Banking and Trust Services.
The Bank offers checking accounts, savings accounts, fixed term deposits and investment products. It offers Ahorro a la Mano, a mobile phone-based savings account. It offers a range of credit alternatives, which include trade financing, loans funded by domestic development banks, working capital loans, credit cards, personal loans, vehicle loans, payroll loans and overdrafts. The Bank is engaged in the mortgage market in Colombia, providing financial support to construction firms and mortgages for individuals and companies. The Bank, through Leasing Bancolombia S.A. Compania de Financiamiento (Leasing Bancolombia) and its subsidiaries, offers financial and operating leases designed for acquiring fixed assets. It assists its clients in mitigating market risk through hedging instruments, such as futures, forwards, options and swaps. Its eTrading, an Internet-based trading platform, available for retail and institutional clients, allows them to buy and sell securities in the Colombian Stock Exchange.
The Bank performs inter-bank lending, repurchase agreements, foreign exchange transactions, as well as sovereign and corporate securities sales and trading. The Bank offers its clients direct access to local and international capital markets through a range of brokerage and investment advisory services that cover equities and fixed income securities, third-party asset management products, such as mutual funds, private equity funds, and privately managed investment accounts for institutional, corporate and private bank clients. The Bank provides support to its clients through cash management, offering a portfolio of standard products that allows clients to make payments and collections through different channels. The Bank offers its clients specialized solutions to satisfy their investment, financing and payment needs with regard to foreign currency transactions. It also provides trade finance solutions with products, such as letters of credit, standby letters of credit and bills collection. The Bank distributes diverse insurance products, such as life, auto, commercial and homeowner's insurance. The Bank offers a range of value-added services, including project and acquisition finance, and capital markets. It also offers various other services, including managing escrow accounts, multiple investment funds, and real estate funds.
The Banking Colombia segment provides retail and corporate banking products and services to individuals, companies, and national and local governments in Colombia. In order to offer specialized services to individuals and small and medium size enterprises (SMEs), the Bank's retail sales force targets the clients classified as: Personal, Private, Entrepreneurs, Foreign Residents and SMEs. This segment is also responsible for the management of the Bank's trading activities, liquidity and distribution of treasury products and services to its client base in Colombia.
The Banking Panama segment provides retail and commercial banking products and services to individuals and companies in Panama through the operations of Banistmo S.A. (Banistmo). This segment is also responsible for the management of the Bank's trading activities, liquidity and distribution of treasury products and services to its client base in Panama.
Banking El Salvador
The Banking El Salvador segment provides retail and commercial banking products and services to individuals, companies, and national and local governments in El Salvador. Banking El Salvador also includes operations of various subsidiaries, which include Arrendadora Financiera S.A., Credibac S.A. de CV and Valores Banagricola S.A. de C.V. This segment is also responsible for the management of the Bank's trading activities, liquidity and distribution of treasury products and services to its client base in El Salvador.
The Banking Guatemala segment provides retail and commercial banking and insurance products and services to individuals, companies, and national and local governments in Guatemala. Banking Guatemala also includes operations of various subsidiaries, such as Banco Agromercantil de Guatemala S.A., Mercomer Bank Ltd., Seguros Agromercantil S.A., Financiera Agromercantil S.A., Agrovalores S.A. and Tarjeta Agromercantil S.A. This segment is also responsible for the management of the Bank's trading activities, liquidity and distribution of treasury products and services to its client base in Guatemala.
The Bank's Leasing segment provides financial and operating leases, including cross-border and international leasing services to clients in Colombia, Central America, Mexico and Brazil. Bancolombia offers these services through its subsidiaries, such as Leasing Bancolombia, Renting Colombia S.A., Arrendamiento Operativo CIB S.A.C., Leasing Peru S.A., Transportempo S.A.S., Capital Investment Safi S.A., Fondo de Inversion en Arrendamiento Operativo Renting Peru and Patrimonio Autonomo Cartera LBC.
The Trust segment provides trust services and asset management to clients in Colombia and Peru through Fiduciaria Bancolombia S.A. and FiduPeru S.A. Sociedad Fiduciaria. The products offered by this segment include money market accounts, mutual and pension funds, private equity funds, payment trust, custody services and corporate trust.
The Investment banking segment provides corporate and project finance advisory, underwriting, capital markets services and private equity management through Banca de Inversion Bancolombia S.A. Its customers include private and publicly held corporations, as well as government institutions.
The Brokerage segment provides brokerage, investment advisory and private banking services to individuals and institutions through Valores Bancolombia S.A. Comisionista de Bolsa, Valores Bancolombia Panama S.A. and Suvalor Panama Fondo de Inversion S.A. The Bank sells and distributes equities, futures, foreign currencies, fixed income securities, mutual funds and structured products.
The Off Shore segment provides a line of offshore banking services to Colombian and Salvadorian customers through Bancolombia Panama S.A., Bancolombia Cayman S.A. and Bancolombia Puerto Rico International, Inc. The Bank offers loans to private sector companies, trade financing, leases financing and financing for industrial projects, as well as a portfolio of cash management products, such as checking accounts, international collections and payments. Through these subsidiaries, the Bank also offers investment opportunities in the United States dollars, savings and checking accounts, time deposits, and investment funds to its high net worth clients and private banking customers.
The All Other segment includes results from small operation of particular investment vehicles of Bancolombia. The investment vehicles of Bancolombia includes Valores Simesa S.A., BIBA Inmobiliaria S.A.S., Inversiones CFNS S.A.S., CFNS Infraestructura S.A.S., Sistema de Inversiones y Negocios S.A. Sinesa, Vivayco S.A.S., Banagricola S.A. and Inversiones Financieras Banco Agricola.
The Bank competes with Banco de Bogota, Davivienda, BBVA, Banco de Occidente, Banco Popular, Citibank, Scotiabank and BAC.
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