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SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Dec. 31, 2022
SIGNIFICANT ACCOUNTING POLICIES  
Schedule of subsidiaries making up the Bank's organizational structure

PROPORTION OF

PROPORTION OF

PROPORTION OF

JURISDICTION

OWNERSHIP

OWNERSHIP

OWNERSHIP

ENTITY

OF

BUSINESS

INTEREST AND

INTEREST AND

INTEREST AND

INCORPORATION

VOTING POWER

VOTING POWER

VOTING POWER

HELD BY THE

HELD BY THE

HELD BY THE

BANK 2022

BANK 2021

BANK 2020

Fiduciaria Bancolombia S.A. Sociedad Fiduciaria

    

Colombia

Trust

98.81

%

98.81

%

98.81

%

Banca de Inversión Bancolombia S.A. Corporación Financiera

Colombia

Investment banking

100.00

%

100.00

%

100.00

%

Valores Bancolombia S.A. Comisionista de Bolsa

Colombia

Securities brokerage

100.00

%

100.00

%

100.00

%

WOMPI S.A.S. (before "VLIPCO S.A.S.")(1)

Colombia

Technology services provider

99.98

%

94.77

%

-

Renting Colombia S.A.S.

Colombia

Operating leasing

100.00

%

100.00

%

100.00

%

Transportempo S.A.S.

Colombia

Transportation

100.00

%

100.00

%

100.00

%

Inversiones CFNS S.A.S.

Colombia

Investments

99.94

%

99.94

%

99.94

%

Negocios Digitales Colombia S.A.S. (before "Pasarela Colombia S.A.S.")

Colombia

Payment solutions

100.00

%

100.00

%

100.00

%

Fondo de Capital Privado Fondo Inmobiliario Colombia(2)

Colombia

Real estate investment fund

80.47

%

49.96

%

49.96

%

P.A. Inmuebles CEM(2)

Colombia

Mercantil trust

80.47

%

49.96

%

49.96

%

P.A. Calle 92 FIC-11(2)

Colombia

Mercantil trust

52.31

%

32.47

%

32.47

%

P.A. FIC Edificio Corfinsura(2)

Colombia

Mercantil trust

80.47

%

49.96

%

49.96

%

P.A. FIC-A5(2)

Colombia

Mercantil trust

80.47

%

49.96

%

49.96

%

P.A. FIC Inmuebles(2)

Colombia

Mercantil trust

80.47

%

49.96

%

49.96

%

P.A. FIC Clínica de Prado(2)

Colombia

Mercantil trust

62.00

%

38.49

%

38.49

%

P. A. FIC A6(2)

Colombia

Mercantil trust

80.47

%

49.96

%

49.96

%

P.A. Central Point(2)

Colombia

Mercantil trust

60.35

%

37.47

%

37.47

%

Fideicomiso Irrevocable de Garantía, Fuente de Pago y Administración Inmobiliaria Polaris(2)

Colombia

Mercantil trust

80.47

%

49.96

%

49.96

%

P.A. Fideicomiso Twins Bay(2)

Colombia

Mercantil trust

80.47

%

49.96

%

49.96

%

Fideicomiso Lote Av San Martín(2)

Colombia

Mercantil trust

80.47

%

49.96

%

49.96

%

P.A. Fideicomiso Lote 30(2)

Colombia

Mercantil trust

80.47

%

49.96

%

49.96

%

Fideicomiso Fondo Inmobiliario Bancolombia(2)

Colombia

Mercantil trust

80.47

%

17.54

%

-

P.A. Florencia Ferrara(3)

Colombia

Mercantil trust

44.26

%

-

-

P.A. Flor Morado Plaza(4)

Colombia

Mercantil trust

80.47

%

-

-

Valores Simesa S.A.(5)

Colombia

Investments

66.33

%

66.82

%

67.11

%

Fideicomiso Lote Abelardo Castro(6)

Colombia

Mercantil trust

-

-

66.77

%

Fideicomiso Lote Distrito Vera B1B2(5)

Colombia

Mercantil trust

66.00

%

66.49

%

66.77

%

Fideicomiso Lote Distrito Vera B3B4(5)

Colombia

Mercantil trust

66.00

%

66.49

%

66.77

%

Fideicomiso Lote B6 Ciudad del Rio(7)

Colombia

Mercantil trust

66.00

%

-

-

P.A. FAI CALLE 77(8)

Colombia

Real estate investment fund

98.00

%

-

-

P.A. NOMAD SALITRE(9)

Colombia

Real estate investment fund

98.00

%

-

-

P.A. MERCURIO(10)

Colombia

Real estate investment fund

100.00

%

-

-

Wenia Ltd.(20)

Bermudas

Technology services

100.00

%

-

-

Wenia S.A.S.(11)

Colombia

Technology services

100.00

%

-

-

Nequi S.A. Compañía de Financiamiento(12)

Colombia

Financial services

100.00

%

-

-

Bancolombia Panamá S.A.

Panama

Banking

100.00

%

100.00

%

100.00

%

Sistemas de Inversiones y Negocios S.A. Sinesa

Panama

Investments

100.00

%

100.00

%

100.00

%

Banagrícola S.A.

Panama

Holding

99.17

%

99.17

%

99.17

%

Banistmo S.A.

Panama

Banking

100.00

%

100.00

%

100.00

%

Banistmo Investment Corporation S.A.

Panama

Trust

100.00

%

100.00

%

100.00

%

Financomer S.A.(13)

Panama

Financial services

-

-

100.00

%

Leasing Banistmo S.A.

Panama

Leasing

100.00

%

100.00

%

100.00

%

Valores Banistmo S.A.

Panama

Securities brokerage

100.00

%

100.00

%

100.00

%

Banistmo Panamá Fondo de Inversión S.A.(14)

Panama

Holding

100.00

%

100.00

%

100.00

%

Suvalor Renta Fija Internacional Corto Plazo S.A.(15)

Panama

Collective investment fund

-

100.00

%

100.00

%

Fondo Renta Sostenible Global S.A.(15)

Panama

Collective investment fund

-

100.00

%

100.00

%

Banistmo Capital Markets Group Inc.(14)

Panama

Real estate broker

100.00

%

100.00

%

100.00

%

Anavi Investment Corporation S.A.(14)

Panama

Real estate

100.00

%

100.00

%

100.00

%

Desarrollo de Oriente S.A.(14)

Panama

Real estate

100.00

%

100.00

%

100.00

%

Steens Enterprises S.A.(14)

Panama

Portfolio holder

100.00

%

100.00

%

100.00

%

Ordway Holdings S.A.(14)

Panama

Real estate broker

100.00

%

100.00

%

100.00

%

Grupo Agromercantil Holding S.A.

Panama

Holding

100.00

%

100.00

%

100.00

%

Banco Agromercantil de Guatemala S.A.

Guatemala

Banking

99.68

%

99.66

%

99.59

%

Seguros Agromercantil de Guatemala S.A.

Guatemala

Insurance agency

79.92

%

79.92

%

79.90

%

Financiera Agromercantil S.A.

Guatemala

Financial services

100.00

%

100.00

%

100.00

%

Agrovalores S.A.

Guatemala

Securities brokerage

100.00

%

100.00

%

100.00

%

Arrendadora Agromercantil S.A.

Guatemala

Operating Leasing

100.00

%

100.00

%

100.00

%

PROPORTION OF

PROPORTION OF

PROPORTION OF

JURISDICTION

OWNERSHIP

OWNERSHIP

OWNERSHIP

ENTITY

OF

BUSINESS

INTEREST AND

INTEREST AND

INTEREST AND

INCORPORATION

VOTING POWER

VOTING POWER

VOTING POWER

HELD BY THE

HELD BY THE

HELD BY THE

BANK 2022

BANK 2021

BANK 2020

Agencia de Seguros y Fianzas Agromercantil S.A.(16)

Guatemala

Insurance agency

100.00

%

100.00

%

100.00

%

Asistencia y Ajustes S.A.

Guatemala

Services

100.00

%

100.00

%

100.00

%

Serproba S.A.

Guatemala

Maintenance and remodelling services

100.00

%

100.00

%

100.00

%

Servicios de Formalización S.A.

Guatemala

Loans formalization

100.00

%

100.00

%

100.00

%

Conserjeria, Mantenimiento y Mensajería S.A.(16)

Guatemala

Maintenance services

100.00

%

100.00

%

100.00

%

Mercom Bank Ltd.(17)

Barbados

Banking

99.68

%

99.66

%

99.59

%

New Alma Enterprises Ltd.

Bahamas

Investments

99.68

%

99.66

%

99.59

%

Bancolombia Puerto Rico Internacional Inc.

Puerto Rico

Banking

100.00

%

100.00

%

100.00

%

Bancolombia Cayman S.A.(18)

Cayman Islands

Banking

100.00

%

100.00

%

100.00

%

Banco Agrícola S.A.

El Salvador

Banking

97.36

%

97.36

%

97.36

%

Arrendadora Financiera S.A. Arfinsa

El Salvador

Leasing

97.37

%

97.37

%

97.37

%

Credibac S.A. de C.V.

El Salvador

Electronic payment platform

97.36

%

97.36

%

97.36

%

Valores Banagrícola S.A. de C.V.

El Salvador

Securities brokerage

98.89

%

98.89

%

98.89

%

Inversiones Financieras Banco Agrícola S.A. IFBA

El Salvador

Holding

98.89

%

98.89

%

98.89

%

Gestora de Fondos de Inversión Banagrícola S.A.

El Salvador

Administers investment funds

98.89

%

98.89

%

98.89

%

Bagrícola Costa Rica S.A.

Costa Rica

Outsourcing

99.17

%

99.17

%

99.17

%

Bancolombia Capital Holdings USA LLC(19)

United States

Holding

100.00

%

100.00

%

-

Bancolombia Capital Adviser LLC(19)

United States

Investment advisor

100.00

%

100.00

%

-

Bancolombia Capital LLC(19)

United States

Securities brokerage

100.00

%

100.00

%

-

(1)During 2022, the Bank, through its subsidiary Banca de Inversión S.A., increased its participation through the purchase of a non-controlling interest.
(2)During 2022, the Bank increased its participation in FCP Fondo Inmobiliario Colombia, in order to strengthen governance and strategy decisions. For further information, see Note 1. Reporting entity.
(3)Company consolidated by the FCP Fondo Inmobiliario Colombia since April 2022.
(4)Company consolidated by the FCP Fondo Inmobiliario Colombia since December 2022.
(5)The decrease in shareholding is due to the repurchase of outstanding stock carried out by Valores Simesa subsidiary during 2021 and 2022.
(6)The trust rights were assigned in June 2021.
(7)Mercantil trust consolidated by Valores Simesa since March 2022. For further information, see Note 1. Reporting entity.
(8)On March 1, 2022, the Parent Company was established as trustor of PA FAI Calle 77, owner of a property that will be used for rental housing. For further information, see Note 1. Reporting entity and Note 9.3. Business combination.
(9)On April 4, 2022, the Parent Company was appointed as trustor of 100% of the trust rights of Patrimonio Autonomo Nomad Salitre, whose main purpose is to develop a Multifamily Project. For further information, see Note 1. Reporting entity.
(10)On July 8, 2022, Bancolombia S.A. acquired control of Fidecomiso P.A. Mercurio, through a through a mercantile trust administration agreement. For further information, see Note 1. Reporting entity.
(11)Company incorporated by Wenia Ltd. on November 22, 2022. For further information, see Note 1. Reporting entity.
(12)On December 14, 2021, the board of directors of the Parent Company authorized the legal separation of the business of Nequi, Bancolombia Group’s digital platform that offers financial services. The Superintendencia Financiera de Colombia, with Resolution 0843 of July 6, 2022, as amended by Resolution 0955 of July 27, 2022, authorized the incorporation of Nequi S.A. Compañía de Financiamiento. The legal separation resulted in the creation and commercial registration of a new corporation supervised by the Superintendencia Financiera de Colombia through which Nequi will operate as a 100% digital credit establishment.  For further information, see Note 1. Reporting entity.
(13)Merger between Banistmo S.A. (absorbing entity) and Financomer S.A. (absorbed entity) in November 2021.
(14)Investments in non-operational stage.
(15)Companies not consolidated by Banistmo S.A. as of November 2022, due to non-compliance with consolidation requirements established in IFRS 10.
(16)Companies in voluntary liquidation.
(17)On September 30, 2021, the Mercom Bank Ltd shareholders authorized the beginning of an organized and gradual process to transfer the assets and liabilities of Mercom Bank, Ltd., to Banco Agromercantil de Guatemala, S. A. or other companies of Bancolombia Group. For further information, see Note 1. Reporting entity.
(18)On October 5, 2020, the Board of Directors of Bancolombia Panamá (Parent Company of Bancolombia Cayman), authorized the decision to wind-down the business and operations of its subsidiary in Cayman. For further information, see Note 1. Reporting entity.
(19)Companies created by Valores Bancolombia S.A. Comisionista de Bolsa in October 2021. For further information, see Note 1. Reporting entity.
(20)On July 22, 2022, the Parent Company, through its subsidiary Sistemas de Inversiones y Negocios S.A. SINESA, incorporated this vehicle whose purpose is to provide technology services. For further information, see Note 1. Reporting entity.

Schedule of consolidated funds

The Bank consolidates the following funds:

% of ownership

% of ownership

% of ownership

Assets managed

Name

Country

interest held by

interest held by

interest held by

December 31, 

December 31, 

the Bank, 2022

the Bank, 2021

the Bank, 2020

2022

2021

Fondo de Capital Privado Fondo Inmobiliario Colombia(1)

Colombia

80.47

%

49.96

%

49.96

%

5,023,316

4,415,509

Fideicomiso Lote Abelardo Castro(2)

Colombia

-

-

66.77

%

-

-

Fideicomiso Lote Distrito Vera B1B2(3)

Colombia

66.00

%

66.49

%

66.77

%

55,733

57,025

Fideicomiso Lote Distrito Vera B3B4(3)

Colombia

66.00

%

66.49

%

66.77

%

53,558

54,941

Fideicomiso Lote B6 Ciudad del Rio(4)

Colombia

66.00

%

-

-

66,150

-

Banistmo Panamá Fondo de Inversión S.A.(5)

Panama

100.00

%

100.00

%

100.00

%

243,268

414,962

(1)Since 2020, the Bank consolidated certain equity instruments that are controlled through its subsidiary FCP Fondo Inmobiliario Colombia, because meet the definition of control in accordance with IFRS 10. For further information, see Note 2.C. Consolidation. Also, during 2022, the Bank increased its participation in FCP Fondo Inmobiliario Colombia, which facilitates speed in decision-making in matters of government and strategy. For further information, see Note 1. Reporting entity.
(2)Trust rights in P.A. Lote Abelardo Castro were transferred in June 2021.
(3)The decrease in equity interest is due to the repurchase by the subsidiary Valores Simesa S.A. (Parent Company of Lote Distrito Vera B1B2, Lote Distrito Vera B3B4 and Lote B6 Ciudad del Rio), during 2022 and 2021. For further information, see Note 2.C. Consolidation, 1. Subsidiaries.
(4)Trust consolidated by Valores Simesa S.A. since March 2022. For further information, see Note 1. Reporting entity.
(5)Investment in non-operational stage. For further information, see Note 2.C. Consolidation, 1. Subsidiaries.

Schedule of exchange rate used by the Bank and its subsidiaries

The table below sets forth the exchange rate used by the Bank and its subsidiaries to convert consolidated statement of financial position accounts and transactions in U.S. dollar into Colombian pesos:

December 31, 2022

December 31, 2021

December 31, 2020

Year-end exchange rate

4,810.20

3,981.16

3,432.50

Average rate for the period ended at

4,257.12

3,747.24

3,691.27

Schedule of economic scenario weighting

It is intended that each perspective contain reasonable expectations and that each has a relevant level of probability associated with it. The scenarios are weighted as follows:

Optimistic

Base

Pessimistic

Country

2022

2021

2022

2021

2022

2021

Colombia

15.00

%

20.00

%

45.00

%

50.00

%

40.00

%

30.00

%

Panama

15.00

%

15.00

%

55.00

%

60.00

%

30.00

%

25.00

%

El Salvador

15.00

%

16.00

%

55.00

%

66.00

%

30.00

%

18.00

%

Guatemala

15.00

%

15.00

%

55.00

%

55.00

%

30.00

%

30.00

%

Summary of projections of macroeconomic variables used to estimate ECL

The following is a comparison of the main macroeconomic variable projected in each country, "GDP growth", used to estimate ECL as of December 31, 2022 and December 31, 2021:

As of December 31, 2022

Colombia

Panama

Cutoff

Optimistic

Base

Pessimistic

Optimistic

Base

Pessimistic

2022

8.11

%

7.76

%

6.98

%

8.84

%

8.19

%

7.53

%

2023

2.01

%

0.93

%

(0.78)

%

5.62

%

3.96

%

2.31

%

2024

3.68

%

2.50

%

0.36

%

5.70

%

3.71

%

1.73

%

As of December 31, 2022

Guatemala

El Salvador

Cutoff

Optimistic

Base

Pessimistic

Optimistic

Base

Pessimistic

2022

4.35

%

3.40

%

2.45

%

3.78

%

2.62

%

1.47

%

2023

4.19

%

2.72

%

1.25

%

3.52

%

1.65

%

(0.23)

%

2024

4.59

%

3.00

%

1.40

%

3.94

%

1.96

%

(0.03)

%

As of December 31, 2021

Colombia

Panama

Cutoff

Optimistic

Base

Pessimistic

Optimistic

Base

Pessimistic

2022

10.40

%

10.00

%

9.60

%

18.00

%

16.00

%

13.50

%

2023

5.70

%

4.00

%

2.40

%

7.50

%

6.50

%

4.50

%

2024

5.30

%

3.40

%

1.50

%

5.50

%

4.50

%

3.50

%

As of December 31, 2021

Guatemala

El Salvador

Cutoff

Optimistic

Base

Pessimistic

Optimistic

Base

Pessimistic

2022

7.10

%

5.70

%

4.40

%

11.00

%

9.50

%

7.50

%

2023

5.20

%

4.30

%

3.00

%

4.30

%

3.70

%

2.80

%

2024

4.00

%

3.40

%

2.30

%

2.60

%

2.30

%

1.80

%

Schedule of significant increase in risk using external credit rating

SIGNIFICANT INCREASE

EXTERNAL RATING ORIGIN

IN RISK

Ba1/BB+

3 Notches

Ba2/BB

3 Notches

Ba3/BB-

3 Notches

B1/B+

2 Notches

B2/B

2 Notches

B3/B-

1 Notch

Caa/CCC

1 Notch

Summary of information about written-off loan portfolio

Loans are written off when the Bank concludes there is no realistic expectation of recovery of the loans and receivables balances from a client or third party, i.e., there is no possibility of recovery due to the debtor's lack of ability or willingness to pay or in the absence of open guarantees granted by the debtor. In general, this characteristic will be fulfilled when the following delinquency conditions are present:

Length of delinquency (days)

Type

Collateral

Grupo Agromercantil Holding S.A.

Banistmo S.A.

Banco Agrícola S.A.

Bancolombia S.A.

Commercial

Without/Whit collateral

N/A(1)

360

360

360

Without collateral

180

180

180

180

Consumer

With collateral

540 for vehicles collateral

1,080 for mortgage collateral

720 for mortgage collateral

Without collateral

180

Small Business Loan

With collateral

180

1,080 for mortgage collateral

180

180

Mortgage

With collateral

1,440

1,080

720

N/A(1)

(1) Not dependent on the length of delinquency but on the reasons underlying a loan's non-recoverability.

Schedule of estimated useful lives for each asset group

Asset group

Useful life range

Buildings

10 to 75 years

Furniture and fixtures

3 to 20 years

Computer equipment

3 to 20 years

Equipment and machinery

2 to 40 years

Vehicles

3 to 10 years

FCP Fondo Inmobiliario Colombia  
SIGNIFICANT ACCOUNTING POLICIES  
Schedule of assets, liabilities, net assets, net income and cash flows of non-controlling interest

The following table summarizes the assets, liabilities, net assets, net income and cash flows as of December 31 2022 and 2021, and for the years ended December 31, 2022, 2021 and 2020, related to the FCP Fondo Inmobiliario Colombia:

As of December 31, 2022

As of December 31, 2021

In millions of COP

Assets

5,023,316

4,415,509

Liabilities

1,729,798

1,509,275

Net assets

3,293,518

2,906,234

Year-Ended 2022

Year-Ended 2021

Year-Ended 2020

In millions of COP

Condensed statement of income

Income

Valuation of investment properties

229,512

85,148

(8,251)

Valuation of trust rights

-

-

4

Rents

181,454

187,194

186,528

Profits of equity method investees

188,148

105,439

56,116

Other income

75,543

92,298

38,135

Total Income

674,657

470,079

272,532

Expenses

Interest on loans

(151,470)

(73,201)

(78,008)

Other administrative and general expenses

(157,851)

(212,385)

(141,430)

Total Expenses

(309,321)

(285,586)

(219,438)

Net Income

365,336

184,493

53,094

Condensed cash flow (1)

Net cash used in operating activities

(350,456)

(34,442)

(172,003)

Net cash provided by financing activities

307,754

21,882

235,214

Cash and cash equivalents at beginning of year

50,808

63,368

157

Cash and cash equivalents at end of year

8,106

50,808

63,368

(1)Statement of cash flow corresponds to the FCP Fondo Inmobiliario Colombia without equity securities consolidated cash flow.