CONFORMED COPY

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1933

For the month of May 2007

BANCOLOMBIA S.A.

(Translation of Registrant’s name into English)

Calle 50 No. 51-66
Medellín, Colombia
(Address of principal executive offices)

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

Form 20-F		þ		Form 40-F		o

(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)

Yes		o		No		þ

(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                    .)

 

 

This Report on Form 6-K shall be incorporated by reference into
the registrant’s registration statement on Form F-3 (File No. 001-32535).

CONSOLIDATED FINANCIAL RESULTS
FOR THE QUARTER ENDED MARCH 31, 2007

May 7, 2007. Medellín, Colombia — Today, BANCOLOMBIA S.A. (“BANCOLOMBIA” or the “Bank”) (NYSE: CIB) announced its financial results for the first quarter of fiscal year 2007, ended March 31, 2007.¹

CONSOLIDATED BALANCE SHEET
AND INCOME STATEMENT		Quarter												Growth
(Ps millions)		1Q 06				4Q 06				1Q 07				1Q 07/ 4Q 06				1Q 07/ 4Q 06
ASSETS
Loans and financial leases, net			18,365,410				23,811,391				24,869,858				4.45	%			35.42	%
Investment securities, net			8,315,148				5,677,761				5,248,891				-7.55	%			-36.88	%
Other assets			4,284,405				4,999,544				6,344,005				26.89	%			48.07	%
Total assets			30,964,963				34,488,696				36,462,754				5.72	%			17.75	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits			18,343,438				23,216,467				24,237,791				4.40	%			32.13	%
Non-interest bearing			3,229,036				4,580,649				3,956,609				-13.62	%			22.53	%
Interest bearing			15,114,402				18,635,818				20,281,182				8.83	%			34.18	%
Other liabilities			9,422,199				7,625,617				8,803,978				15.45	%			-6.56	%
Total liabilities			27,765,637				30,842,084				33,041,769				7.13	%			19.00	%
Shareholders’ equity			3,199,326				3,646,612				3,420,985				-6.19	%			6.93	%
Total liabilities and shareholders’ equity			30,964,963				34,488,696				36,462,754				5.72	%			17.75	%
Interest income			747,905				893,050				892,401				-0.07	%			19.32	%
Interest expense			289,761				331,220				353,834				6.83	%			22.11	%
Net interest income			458,144				561,830				538,567				-4.14	%			17.55	%
Net provisions			(50,678	)			(6,147	)			(37,109	)			503.69	%			-26.77	%
Fees and income from service, net			206,119				232,001				214,169				-7.69	%			3.91	%
Other operating income			84,938				84,482				31,052				-63.24	%			-63.44	%
Operating expense			(418,911	)			(555,953	)			(477,117	)			-14.18	%			13.89	%
Non-operating income, net			2,269				2,838				13,712				383.16	%			504.32	%
Income tax expense			(67,779	)			(34,158	)			(83,317	)			143.92	%			22.92	%
Net income			214,102				284,893				199,957				-29.81	%			-6.61	%

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 Colombian GAAP, and are stated in nominal terms and have not been audited. BANCOLOMBIA maintains accounting records in Colombian pesos, referred to herein as “Ps.” There have been no changes to the Bank’s principal accounting policies in the quarter ended March 31, 2007. The statements of income for the quarter ended March 31, 2007 are not necessarily indicative of the results that may be expected for the entire year or any other future interim period. For more information, please refer to the Company’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 must be understood as referring to the Bank together with its affiliates, unless otherwise specified.

Representative Market Exchange Rate:		March 31, 2007		Ps2,190.30 = US$1		Average exchange rate March 2007 Ps2,221.93 = US$1

1Q07

1. HIGHLIGHTS:

	•		Net income for the quarter ended March 31, 2007, totaled Ps 200.0 billion, representing a 29.8% decrease as compared to Ps 284.9 billion for the fourth quarter of 2006 and a 6.6% decrease as compared to Ps 214.1 billion for the first quarter of 2006.
	•		As of March 31, 2007, BANCOLOMBIA’s net loans and financial leases totaled Ps 24,870 billion, representing an increase of 4.4% as compared to Ps 23,811 billion for the fourth quarter of 2006 and an increase of 35.4% on a year-to-year basis from Ps 18,365 billion as of March 31, 2006.
	•		Investments in debt securities for the quarter ended March 31, 2007, totaled Ps 4,977 billion, representing a decrease of 10.0% as compared to the fourth quarter of 2006 and a decrease of 38.8% as compared to the first quarter of 2006.
	•		Net interest income for the quarter ended March 31, 2007, totaled Ps 538.6 billion, representing a 4.1% decrease as compared to the fourth quarter of 2006 and a 17.5% increase as compared to the first quarter of 2006.
	•		As of March 31, 2007, BANCOLOMBIA’s ratio of past due loans to total loans was 2.7%, and the ratio of allowances to past due loans was 130.4%.

KEY FINANCIAL HIGHLIGHTS		Quarter
		1Q 06				4Q 06				1Q 07
Net Income (Ps millions)			214,102				284,893				199,957
Basic and Diluted net income per ADS			0.513				0.699				0.502
Return on average total assets (1)(3)			2.78	%			3.37	%			2.28	%
Return on average shareholders’ equity (2)(3)			25.11	%			32.33	%			22.06	%
Weighted average of Preferred and Common Shares outstanding			727,827,005				727,827,005				727,827,005

(1)		Defined as annualized quarterly net income divided by monthly average assets.
(2)		Defined as annualized quarterly net income divided by monthly average equity.
(3)		In order to be consistent with the methodology used in our current filings with the SEC, the Bank has changed the methodology employed in previous interim periods from average assets as of three points in a quarter (the last day of each of the three months in such quarter) to a computation based on the average assets as of four points in a quarter (the last day of the previous quarter together with the last day of each of the three months in such quarter). Accordingly, the indicators presented in this report are not directly comparable to those announced in previous interim periods.

1Q07

2. CONSOLIDATED BALANCE SHEET

2.1.

Assets

BANCOLOMBIA’s total assets amounted to Ps 36,463 billion as of March 31, 2007, representing a 17.8% increase as compared to Ps 30,965 billion as of March 31, 2006 and a 5.7% increase as compared to Ps 34,489 billion as of December 31, 2006. The increase in total assets was primary due to the positive growth of the loan portfolio during the period.

2.1.1.

Loan Portfolio

Total loans and financial leases amounted to Ps 24,870 billion as of March 31, 2007, representing a 4.4% increase as compared to December 31, 2006 and 35.4% increase as compared to March 31, 2006.

Corporate loans were stable during the quarter. They amounted to Ps 12,821 billion as of March 31, 2007, representing a 0.5% increase as compared to Ps 12,758 billion as of December 31, 2006 and a 34.2% increase as compared to Ps 9,552 billion as of March 31, 2006.

Retail and small and medium-sized enterprise (“SME”) loans amounted to Ps 7,394 billion as of March 31, 2007, representing a 6.4% increase as compared to Ps 6,949 billion as of December 31, 2006 and a 43.0% increase as compared to Ps 5,171 billion as of March 31, 2006.

Financial leases amounted to Ps 3,832 billion as of March 31, 2007, representing an increase of 7.8% as compared to December 31, 2006, and an increase of 34.4% as compared to March 31, 2006.

Mortgage loans amounted to Ps 1,714 billion as of March 31, 2007. BANCOLOMBIA securitized most of the mortgage loans recently originated. The increase in mortgage loans including past securitizations was 11.0% as compared to December 31, 2006 and 41.2% as compared to March 31, 2006.

LOAN PORTFOLIO		As of												Growth
(Ps millions)		31-Mar-06				31-Dec-06				31-Mar-07				1Q 07/4Q 06				1Q 07/1Q 06
CORPORATE
Working capital loans			8,414,643				11,534,148				11,686,537				1.32	%			38.88	%
Loans funded by domestic development banks			433,435				321,263				348,662				8.53	%			-19.56	%
Trade Financing			598,818				777,417				607,841				-21.81	%			1.51	%
Overdrafts			74,824				74,218				124,476				67.72	%			66.36	%
Credit Cards			30,233				50,803				53,053				4.43	%			75.48	%
TOTAL CORPORATE			9,551,953				12,757,849				12,820,569				0.49	%			34.22	%
RETAIL AND SMEs
Working capital loans			1,663,145				2,331,999				2,442,163				4.72	%			46.84	%
Personal loans			1,613,637				2,281,177				2,419,199				6.05	%			49.92	%
Loans funded by domestic development banks			406,196				386,283				386,636				0.09	%			-4.82	%
Credit Cards			613,549				796,175				868,419				9.07	%			41.54	%
Overdrafts			141,874				119,882				175,633				46.50	%			23.80	%
Automobile loans			675,834				963,072				1,039,109				7.90	%			53.75	%
Trade Financing			57,084				70,406				62,692				-10.96	%			9.82	%
TOTAL RETAIL AND SMEs			5,171,319				6,948,994				7,393,851				6.40	%			42.98	%
MORTGAGE			1,530,291				1,385,445				1,713,518				23.68	%			11.97	%
FINANCIAL LEASES			2,850,547				3,553,286				3,831,727				7.84	%			34.42	%
Total loans and financial leases			19,104,110				24,645,574				25,759,665				4.52	%			34.84	%
Allowance for loan losses and financial leases			(738,700	)			(834,183	)			(889,807	)			6.67	%			20.46	%
Total loans and financial leases, net			18,365,410				23,811,391				24,869,858				4.45	%			35.42	%

1Q07

2.1.2.

Investment Portfolio

As of March 31, 2007, BANCOLOMBIA’s net investment securities amounted to Ps 5,249 billion, representing a decrease of 7.6% as compared to December 31, 2006, and a decrease of 36.9% as compared to March 31, 2006. As of March 31, 2007, investments in debt securities represented 94.8% of the investment securities portfolio.

BANCOLOMBIA’s investments in debt securities amounted to Ps 4,977 billion (13.6% of total assets) as of March 31, 2007, decreasing 10.0% as compared December 31, 2006 when such investments amounted to Ps 5,531 billion (16.0% of total assets) and 38.8% as compared to March 31, 2006 when such investments amounted to Ps 8,132 billion (26.3% of total assets). Such decrease is a consequence of the Bank’s strategy to focus on reallocation of assets from the investment portfolio to the loan portfolio and to lower exposure to debt securities’ prices.

2.1.3.

Asset Quality

As of March 31, 2007, the Bank’s past due loans accounted for 2.7% of total loans. Loans classified as C, D and E comprised 2.7% of total loans. The slight deterioration in the asset quality as compared to December 31, 2006 is explained by the faster growth of retail and SMEs’ loans, as such segment has higher delinquency as compared to the corporate segment. In addition, the ratio of allowances to past due loans at the end of the quarter was 130.4%, while the ratio of allowances to loans classified as C, D and E at the end of the quarter was 130.5%.

LOANS AND FINANCIAL LEASES CLASSIFICATION
( Ps millions)		As of 30-Mar-06								As of 31-Dec-06								As of 30-Mar-07
¨A¨ Normal			17,880,922				93.6	%			23,310,545				94.6	%			24,348,087				94.5	%
¨B¨ Subnormal			628,404				3.3	%			708,774				2.9	%			719,860				2.8	%
¨C¨ Deficient			208,751				1.1	%			209,386				0.8	%			261,021				1.0	%
¨D¨ Doubtful recovery			219,086				1.1	%			242,763				1.0	%			220,989				0.9	%
¨E¨ Unrecoverable			166,947				0.9	%			174,106				0.7	%			209,708				0.8	%
Total			19,104,110				100	%			24,645,574				100	%			25,759,665				100	%
Loans and financial leases classified as C, D and E as a percentage of total loans and financial leases			3.1	%							2.5	%							2.7	%

ASSET QUALITY		As of												Growth
( Ps millions)		31-Mar-06				31-Dec-06				31-Mar-07				1Q 07/4Q 06				1Q 07/1Q 06
Total performing past due loans (1)			298,428				234,847				316,748				34.87	%			6.14	%
Total non-performing past due loans			298,567				334,488				375,569				12.28	%			25.79	%
Total past due loans			596,995				569,335				692,318				21.60	%			15.97	%
Allowance for loans and accrued interest losses			748,226				845,827				902,723				6.73	%			20.65	%
Past due loans to total loans			3.12	%			2.31	%			2.69	%
Non-performing loans as a percentage of total loans			1.56	%			1.36	%			1.46	%
“C”, “D” and “E” loans as a percentage of total loans			3.11	%			2.54	%			2.69	%
Allowances to past due loans (2)			125.33	%			148.56	%			130.39	%
Allowance for loan and accrued interest losses as a percentage of “C”, “D” and “E” loans (2)			125.80	%			135.06	%			130.50	%
Allowance for loan and accrued interest losses as a percentage of non-performing loans (2)			250.61	%			252.87	%			240.36	%
Allowance for loan and accrued interest losses as a percentage of total loans			3.92	%			3.43	%			3.50	%
Percentage of performing loans to total loans			98.44	%			98.64	%			98.54	%

(1)		Performing past due loans are loans upon which the Bank continues to recognize income although interest has not been received for the periods indicated. Non-performing loans comprised of consumer loans that are past due 60 days or more, commercial loans that are past due 90 days or more, small business loans that are past due 30 days or more and mortgage loans that are past due 60 days or more. Under Colombian Banking regulations, a loan is past due when it is at least 31 days past the actual due date.
(2)		Allowance means allowance for loan and accrued interest losses.

1Q07

2.2.

Liabilities

As of March 31, 2007, BANCOLOMBIA’s total deposits amounted to Ps 24,238 billion, representing an increase of 4.4% as compared to December 31, 2006, and an increase of 32.1% as compared to March 31, 2006. Also as of March 31, 2007, savings deposits and time deposits increased 7.1% and 10.3%, respectively as compared to December 31, 2006, whereas checking accounts decreased 7.9% as compared to the same period. As compared to March 31, 2006, saving deposits, time deposits and checking accounts increased 48.5%, 20.7% and 26.3%, respectively.

2.3.

Shareholders’ Equity

As of March 31, 2007 BANCOLOMBIA’s shareholders’ equity amounted to Ps 3,421 billion, representing a decrease of 6.2% as compared to December 31, 2006 and an increase of 6.9% as compared to March 31, 2006. The decrease in shareholders’ equity as compared to December 31, 2006 is due to the declaration at the general shareholders’ meeting held on March 1, 2007, of an aggregate dividend payment of Ps 387 billion.

Unrealized losses on available-for-sale debt securities amounted to Ps 6.9 billion as of March 31, 2007.

Also as of March 31, 2007, the Bank’s consolidated ratio of technical capital to risk-weighted assets was 11.14%, a slight increase from the 11.05% as of December 31, 2006, but a decrease from the 12.66% as of March 31, 2006. This decrease resulted from the strong growth of the loan portfolio.

TECHNICAL CAPITAL RISK WEIGHTED ASSETS
Consolidated (Ps millions)		31-Mar-06				31-Dec-06				31-Mar-07
Basic capital (Tier I)			2,758,088				2,986,091				3,144,457
Additional capital (Tier II)			392,604				428,221				426,799
Technical capital (1)			3,150,692				3,414,312				3,571,256
Risk weighted assets			24,891,156				30,885,195				32,055,602
CAPITAL ADEQUACY (2)			12.66	%			11.05	%			11.14	%

(1)		Technical capital is the sum of basic capital and additional capital.
(2)		Capital Adequacy is Technical capital divided by Risk weighted assets.

1Q07

3. INCOME STATEMENT

BANCOLOMBIA’s net income amounted to Ps 199,957 million for the first quarter of 2007, as compared to Ps 284,893 million for the fourth quarter of 2006 and Ps 214,102 million for the first quarter of 2006.

3.1.

Net Interest Income

During the first quarter of 2007 interest on loans amounted to Ps 674,217 million, increasing 4.2% as compared to the last quarter of 2006 (when interest on loans amounted to Ps 647,302 million) and 29.8% as compared the first quarter of 2006 (when interest on loans amounted to Ps 519,316 million). On the other hand, interests on investment securities amounted to Ps 82,752 million during the first quarter of 2007, a decrease of 32.4% as compared to the fourth quarter of 2006 and of 38.9% as compared to the first quarter of 2006. Such decreases are explained by the decrease in the size of the investment portfolio and by the lower returns achieved by debt securities in the emerging markets.

Interest expenses amounted to Ps 353,834 million during the quarter ended March 31, 2007, increasing 6.8% as compared to the quarter ended December 31, 2006 and 22.1% as compared to the quarter ended March 31, 2006 caused by an increase in deposit funds from clients and interest rates. The increase in deposit funds from clients partially offset the decrease in the Bank’s liquidity resulting from the interest rate increases implemented by the Colombian Central Bank.

As a result, net interest income totaled Ps 538,567 million for the period ended March 31, 2007, a decrease of 4.14% as compared to the last quarter of 2006. However, as compared to the figures presented for the period ended March 31, 2006, net interest income increased 17.5%.

3.2.

Provisions

For the period ended March 31, 2007, provisions for loan and interest losses, net of recoveries amounted to Ps 74,392 million, representing an increase of 15.9% as compared to Ps 64,205 million for the first quarter of 2006. This level of provisions represents an increase of 142.9% as compared to the fourth quarter of 2006, when such provisions amounted to Ps 30,630 million. Such increase is mainly due to lower recoveries registered during the quarter ended March 31, 2007 as compared to the unusually high Ps 50,000 million in recoveries registered during the quarter ended December 31, 2006.

Additionally, recoveries of provisions for foreclosed assets and other assets amounted to Ps 29,421 million during the first quarter of 2007, increasing 21.5% as compared to the fourth quarter of 2006. This is due to the divestiture of Almacenar S.A. announced on March 6, 2007, which represented a recovery of provisions previously accrued in relation to such investment and which was offset by a registered loss in the sale of Almacenar S.A. stock. As a result, the sale of Almacenar S.A. did not have any effect on the net income of the first quarter of 2007.

1Q07

3.3.

Fees and Income from Services

Net fees and income from services amounted to Ps 214,169 million during the first quarter of 2007, decreasing 7.7% as compared to the fourth quarter of 2006 and increasing 3.9% as compared to the first quarter of 2006. Net fees and income from services figures are affected as compared to the fourth quarter of 2006 and to the first quarter of 2006 due to the disposal of Almacenar S.A. whose revenue income was included in the net fees and income from services line. After adjusting for the effect of the divestiture of Almacenar S.A., net fees and income from services decreased 1.1% as compared to the fourth quarter of 2006 and increased 14.0% as compared to the first quarter of 2006.

During the first quarter of 2007, BANCOLOMBIA’s accumulated unconsolidated credit card billing increased 27.7%, resulting in a 21.7% market share of the Colombian credit card business. In addition, the number of outstanding credit cards issued by BANCOLOMBIA increased 22.9%, resulting in a 14.7% market share.

ACCUMULATED CREDIT CARD BILLING										%				2007
(Millions of pesos as of March 31, 2007)		March-06				March-07				Growth				Market Share
Bancolombia VISA			240,256				307,976				28.19	%			7.05	%
Bancolombia Mastercard			363,009				432,091				19.03	%			9.89	%
Bancolombia American Express			139,165				208,065				49.51	%			4.76	%
Total Bancolombia			742,430				948,132				27.71	%			21.70	%
Colombian Credit Card Market			3,449,944				4,369,448				26.65	%

Source:		Credibanco y Redeban multicolor

CREDIT CARD MARKET SHARE										%				2007
(Outstanding credit cards as of March 31, 2007)		March-06				March-07				Growth				Market Share
Bancolombia VISA			195,719				240,095				22.67	%			5.05	%
Bancolombia Mastercard			261,335				297,610				13.88	%			6.26	%
Bancolombia American Express			110,242				159,536				44.71	%			3.36	%
Total Bancolombia			567,296				697,241				22.91	%			14.67	%
Colombian Credit Card Market			3,618,893				4,752,440				31.32	%

Source:		Credibanco y Redeban multicolor

3.4.

Operating expenses

Operating expenses amounted to Ps 470,203 million during the first quarter of 2007, representing a decrease of 12.9% as compared to the fourth quarter of 2006 when operating expenses amounted to Ps 539,563 million. However, it represented an increase of 15.1% as compared to the first quarter of 2006 when operating expenses amounted to Ps 408,585 million.

In addition, if compared to the quarterly average of 2006 after adjusting for the effect of the sale of Almacenar S.A., operating expenses during the quarter ended in March 31, 2007 grew 7.8%, due to the increased activity arising from the strong growth of the loan portfolio and deposit base experienced over the prior year.

During the first quarter of 2007, BANCOLOMBIA’s efficiency ratio as calculated by dividing operating expenses by net operating income was 60.9%. Also during the same period, BANCOLOMBIA’s efficiency ratio measured by dividing operating expenses by average total assets was 5.4%.

1Q07

PRINCIPAL RATIOS		Quarter
		1Q 06				4Q 06				1Q 07
PROFITABILITY
Net interest margin (1)(5)			6.61	%			7.36	%			6.76	%
Return on average total assets (2)(5)			2.78	%			3.37	%			2.28	%
Return on average shareholders ´ equity (3)(5)			25.11	%			32.33	%			22.06	%
EFFICIENCY
Operating expenses as a percentage of interest, fees, services and other operating income			55.91	%			63.30	%			60.87	%
Operating expenses as a pecentage of average total assets (4)(5)			5.44	%			6.58	%			5.43	%
CAPITAL ADEQUACY
Period-end shareholders’ equity as a percentage of period-end total assets			10.33	%			10.57	%			9.38	%
Technical capital to risk weighted assets			12.66	%			11.05	%			11.14	%

(1)		Net Interest Income divided by monthly average interest-earning assets.
(2)		Net income divided by monthly average assets.
(3)		Net income divided by monthly average shareholders’ equity.
(4)		Operating expenses divided by monthly average assets.
(5)		In order to be consistent with the methodology used in our current filings with the SEC, the Bank has changed the methodology employed in previous interim periods from average assets as of three points in a quarter (the last day of each of the three months in such quarter) to a computation based on the average assets as of four points in a quarter (the last day of the previous quarter together with the last day of each of the three months in such quarter). Accordingly, the indicators presented in this report are not directly comparable to those announced in previous interim periods.

1Q07

CONSOLIDATED BALANCE SHEET		As of												Growth
														Last
(Ps millions)		Mar-06				Dec-06				Mar-07				Quarter				Annual
ASSETS
Cash and due from banks			1,432,090				1,548,752				1,785,031				15.26	%			24.65	%
Overnight funds sold			257,964				457,614				1,644,686				259.40	%			537.56	%
Total cash and equivalents			1,690,054				2,006,366				3,429,717				70.94	%			102.94	%
Debt securities			8,131,968				5,530,559				4,976,814				-10.01	%			-38.80	%
Trading			5,393,302				2,605,852				2,470,100				-5.21	%			-54.20	%
Available for Sale			1,749,010				1,810,584				1,419,690				-21.59	%			-18.83	%
Held to Maturity			989,656				1,114,123				1,087,024				-2.43	%			9.84	%
Equity securities			256,589				224,787				348,326				54.96	%			35.75	%
Trading			56,378				61,640				184,153				198.76	%			226.64	%
Available for Sale			200,211				163,147				164,173				0.63	%			-18.00	%
Market value allowance			(73,409	)			(77,585	)			(76,249	)			-1.72	%			3.87	%
Net investment securities			8,315,148				5,677,761				5,248,891				-7.55	%			-36.88	%
Commercial loans			12,062,241				16,028,505				16,251,374				1.39	%			34.73	%
Consumer loans			2,547,051				3,587,260				3,840,002				7.05	%			50.76	%
Small business loans			113,980				91,078				123,044				35.10	%			7.95	%
Mortgage loans			1,530,291				1,385,445				1,713,518				23.68	%			11.97	%
Finance lease			2,850,547				3,553,286				3,831,727				7.84	%			34.42	%
Allowance for loan losses			(738,700	)			(834,183	)			(889,807	)			6.67	%			20.46	%
Net total loans and financial leases			18,365,410				23,811,391				24,869,858				4.45	%			35.42	%
Accrued interest receivable on loans			199,623				266,934				269,255				0.87	%			34.88	%
Allowance for accrued interest losses			(9,526	)			(11,644	)			(12,916	)			10.92	%			35.59	%
Net total interest accrued			190,097				255,290				256,339				0.41	%			34.85	%
Customers’ acceptances and derivatives			104,372				166,395				174,370				4.79	%			67.07	%
Net accounts receivable			395,484				562,598				574,400				2.10	%			45.24	%
Net premises and equipment			645,915				712,722				696,105				-2.33	%			7.77	%
Foreclosed assets, net			26,663				18,611				19,032				2.26	%			-28.62	%
Prepaid expenses and deferred charges			34,404				46,462				40,751				-12.29	%			18.45	%
Goodwill			45,297				40,164				33,250				-17.21	%			-26.60	%
Operating leases, net			157,761				167,307				211,625				26.49	%			34.14	%
Other			648,030				675,265				578,306				-14.36	%			-10.76	%
Reappraisal of assets			346,328				348,364				330,110				-5.24	%			-4.68	%
Total assets			30,964,963				34,488,696				36,462,754				5.72	%			17.75	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
DEPOSITS
Non-interest bearing			3,229,036				4,580,649				3,956,609				-13.62	%			22.53	%
Checking accounts			2,758,182				4,121,506				3,522,589				-14.53	%			27.71	%
Other			470,854				459,143				434,020				-5.47	%			-7.82	%
Interest bearing			15,114,402				18,635,818				20,281,182				8.83	%			34.18	%
Checking accounts			1,152,790				1,244,348				1,418,384				13.99	%			23.04	%
Time deposits			6,739,068				7,377,586				8,136,221				10.28	%			20.73	%
Savings deposits			7,222,544				10,013,884				10,726,577				7.12	%			48.52	%
Total deposits			18,343,438				23,216,467				24,237,791				4.40	%			32.13	%
Overnight funds			1,650,203				1,007,045				714,864				-29.01	%			-56.68	%
Bank acceptances outstanding			40,990				64,030				54,912				-14.24	%			33.96	%
Interbank borrowings			1,810,035				1,066,845				1,649,062				54.57	%			-8.89	%
Borrowings from domestic development banks			2,407,828				2,449,581				2,556,219				4.35	%			6.16	%
Accounts payable			1,021,597				988,723				1,764,544				78.47	%			72.72	%
Accrued interest payable			205,177				190,121				191,296				0.62	%			-6.77	%
Other liabilities			465,855				387,697				368,275				-5.01	%			-20.95	%
Bonds			1,477,542				1,302,702				1,119,807				-14.04	%			-24.21	%
Accrued expenses			292,622				119,984				335,695				179.78	%			14.72	%
Minority interest in consolidated subsidiaries			50,350				48,889				49,304				0.85	%			-2.08	%
Total liabilities			27,765,637				30,842,084				33,041,769				7.13	%			19.00	%
SHAREHOLDERS’ EQUITY
Subscribed and paid in capital			363,914				363,914				363,914				0.00	%			0.00	%
Retained earnings			2,215,130				2,711,927				2,503,244				-7.70	%			13.01	%
Appropiated			2,001,028				1,962,398				2,303,287				17.37	%			15.11	%
Unappropiated			214,102				749,529				199,957				-73.32	%			-6.61	%
Reappraisal and others			569,793				560,111				560,705				0.11	%			-1.59	%
Gross unrealized gain or loss on debt securities			50,489				10,660				(6,878	)			-164.52	%			-113.62	%
Total shareholder’s equity			3,199,326				3,646,612				3,420,985				-6.19	%			6.93	%

1Q07

CONSOLIDATED INCOME STATEMENT		Quarter												Growth
(Ps Millions)		1Q 06				4Q 06				1Q 07				1Q 07/4Q 06				1Q 07/1Q 06
Interest income and expenses
Interest on loans			519,316				647,302				674,217				4.16	%			29.83	%
Interest on investment securities			135,379				122,448				82,752				-32.42	%			-38.87	%
Overnight funds			9,015				12,784				14,993				17.28	%			66.31	%
Leasing			84,195				110,516				120,439				8.98	%			43.05	%
Total interest income			747,905				893,050				892,401				-0.07	%			19.32	%
Interest expense Checking accounts			7,098				8,641				8,509				-1.53	%			19.88	%
Time deposits			106,016				123,335				130,722				5.99	%			23.30	%
Savings deposits			55,277				80,106				92,832				15.89	%			67.94	%
Total interest on deposits			168,391				212,082				232,063				9.42	%			37.81	%
Interbank borrowings			28,085				15,239				15,881				4.21	%			-43.45	%
Borrowings from domestic development banks			40,857				50,660				53,697				5.99	%			31.43	%
Overnight funds			20,835				25,910				28,687				10.72	%			37.69	%
Bonds			31,593				27,329				23,506				-13.99	%			-25.60	%
Total interest expense			289,761				331,220				353,834				6.83	%			22.11	%
Net interest income			458,144				561,830				538,567				-4.14	%			17.55	%
Provision for loan and accrued interest losses, net			(64,205	)			(30,630	)			(74,392	)			142.87	%			15.87	%
Recovery of charged-off loans			16,747				20,512				15,375				-25.04	%			-8.19	%
Provision for foreclosed assets and other assets			(12,636	)			(20,251	)			(7,513	)			-62.90	%			-40.54	%
Recovery of provisions for foreclosed assets and other assets			9,416				24,222				29,421				21.46	%			212.46	%
Total net provisions			(50,678	)			(6,147	)			(37,109	)			503.69	%			-26.77	%
Net interest income after provision for loans and accrued interest losses			407,466				555,683				501,458				-9.76	%			23.07	%
Commissions from banking services and other services			27,963				48,708				46,141				-5.27	%			65.01	%
Electronic services and ATM fees			20,725				20,210				17,489				-13.46	%			-15.61	%
Branch network services			12,833				22,107				24,087				8.96	%			87.70	%
Collections and payments fees			15,164				23,142				24,927				7.71	%			64.38	%
Credit card merchant fees			2,235				2,156				6,119				183.81	%			173.78	%
Credit and debit card annual fees			59,248				58,714				56,547				-3.69	%			-4.56	%
Checking fees			14,696				15,725				16,252				3.35	%			10.59	%
Warehouse services (2)			17,981				19,763				—				*				*
Fiduciary activities			15,595				18,415				15,859				-13.88	%			1.69	%
Brokerage fees			23,383				15,460				13,814				-10.65	%			-40.92	%
Check remittance			2,852				2,703				2,698				-0.18	%			-5.40	%
International operations			6,836				9,233				9,878				6.99	%			44.50	%
Fees and other service income			219,511				256,336				233,811				-8.79	%			6.51	%
Fees and other service expenses			(13,392	)			(24,335	)			(19,642	)			-19.28	%			46.67	%
Total fees and income from services, net			206,119				232,001				214,169				-7.69	%			3.91	%
Other operating income
Net foreign exchange gains			11,269				(46,406	)			(15,884	)			-65.77	%			-240.95	%
Forward contracts in foreign currency			4,337				75,801				26,846				-64.58	%			519.00	%
Gains on sales of investments on equity securities			34,121				26,749				(15,185	)			-156.77	%			-144.50	%
Gains on sale of mortgage loan			—				14,371				—				*				*
Dividend income			19,620				(115	)			14,703				12885.22	%			-25.06	%
Revenues from commercial subsidiaries			13,245				9,100				16,209				78.12	%			22.38	%
Communication, postage, rent and others			2,346				4,982				4,363				-12.42	%			85.98	%
Total other operating income			84,938				84,482				31,052				-63.24	%			-63.44	%
Total income			698,523				872,166				746,679				-14.39	%			6.89	%
Operating expenses
Salaries and employee benefits			163,778				184,966				180,661				-2.33	%			10.31	%
Bonus plan payments			8,227				18,601				11,865				-36.21	%			44.22	%
Compensation			716				3,153				6,025				91.09	%			741.48	%
Administrative and other expenses			198,526				262,433				236,135				-10.02	%			18.94	%
Deposit security, net			15,682				18,395				12,247				-33.42	%			-21.90	%
Donation expenses			58				22,347				435				-98.05	%			650.00	%
Depreciation			21,598				29,668				22,835				-23.03	%			5.73	%
Total operating expenses			408,585				539,563				470,203				-12.85	%			15.08	%
Net operating income			289,938				332,603				276,476				-16.88	%			-4.64	%
Merger expenses			4,664				9,476				—				*				*
Goodwill amortization (1)			5,662				6,914				6,914				0.00	%			22.11	%
Non-operating income (expense)
Other income			20,461				36,469				33,607				-7.85	%			64.25	%
Minority interest			(2,761	)			(612	)			(2,407	)			293.30	%			-12.82	%
Other expense			(15,431	)			(33,019	)			(17,488	)			-47.04	%			13.33	%
Total non-operating income			2,269				2,838				13,712				383.16	%			504.32	%
Income before income taxes			281,881				319,051				283,274				-11.21	%			0.49	%
Income tax expense			(67,779	)			(34,158	)			(83,317	)			143.92	%			22.92	%
Net income			214,102				284,893				199,957				-29.81	%			-6.61	%

(1)		Includes Banco de Colombia and Comercia S.A.
(2)		Bancolombia sold its participation in Almacenar on February 2007.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.