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FAIR VALUE OF ASSETS AND LIABILITIES (Tables)
12 Months Ended
Dec. 31, 2022
FAIR VALUE OF ASSETS AND LIABILITIES  
Schedule of carrying amount and the fair value of the assets and liabilities

The following table presents the carrying amount and the fair value of the assets and liabilities as of December 31, 2022 and 2021:

December 31, 2022

December 31, 2021

Carrying

Fair

Carrying

Fair

amount

Value

amount

Value

In millions of COP

Assets

Debt instruments at fair value through profit or loss

11,052,250

11,052,250

15,036,467

15,036,467

Debt instruments at fair value through OCI

7,977,675

7,977,675

7,245,451

7,245,451

Debt instruments at amortized cost

8,336,360

8,246,876

6,527,230

6,502,271

Derivative financial instruments

4,961,237

4,961,237

2,454,005

2,454,005

Equity securities at fair value

573,855

573,855

480,153

480,153

Loans and advances to customers at amortized cost, net

254,444,099

251,336,077

204,459,001

213,262,329

Investment property

3,994,058

3,994,058

3,132,220

3,132,220

Investments in associates(1)

1,532,156

1,532,156

1,358,368

1,358,368

Total

292,871,690

289,674,184

240,692,895

249,471,264

Liabilities

Deposits by customers

250,992,323

249,503,805

210,390,848

211,619,686

Interbank deposits

902,132

902,132

886,405

886,405

Repurchase agreements and other similar secured borrowing

189,052

189,052

763,325

763,325

Derivative financial instruments

4,737,454

4,737,454

1,961,109

1,961,109

Borrowings from other financial institutions

19,692,638

19,692,638

8,551,558

8,551,558

Preferred shares

584,204

350,978

584,204

604,025

Debt instruments in issue

19,575,988

18,776,819

21,093,864

21,696,836

Total

296,673,791

294,152,878

244,231,313

246,082,944

(1)It corresponds to investments in associates P.A Viva Malls and Distrito Vera. See Note 8 Investments in associates and joint ventures.
Schedule of fair-value hierarchy levels the Bank's assets that are measured at fair value on a recurring basis

The following table presents for each of the Fair-Value hierarchy levels the Bank’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2022 and 2021:

Financial Assets

December 31, 2022

December 31, 2021

Type of instrument

Fair value hierarchy

Total fair

Fair value hierarchy

Total fair

Level 1

Level 2

Level 3

value

Level 1

Level 2

Level 3

value

In millions of COP

Investment securities

Debt instruments at fair value through profit or loss

Securities issued by the Colombian Government

3,960,211

300,019

-

4,260,230

8,377,741

600,743

-

8,978,484

Securities issued or secured by government entities

13,075

65,960

-

79,035

-

67,395

-

67,395

Securities issued by other financial institutions

90,928

451,285

81,389

623,602

197,315

378,787

113,058

689,160

Securities issued by foreign governments

3,136,636

2,831,220

-

5,967,856

3,083,180

2,097,595

-

5,180,775

Corporate bonds

17,299

104,228

-

121,527

28,483

92,170

-

120,653

Total debt instruments at fair value through profit or loss

7,218,149

3,752,712

81,389

11,052,250

11,686,719

3,236,690

113,058

15,036,467

Debt instruments at fair value through OCI

Securities issued by the Colombian Government

-

2,590,622

-

2,590,622

-

2,515,927

-

2,515,927

Securities issued by other financial institutions

465,025

104,332

-

569,357

188,638

122,020

-

310,658

Securities issued by foreign governments

4,045,118

649,251

-

4,694,369

2,672,889

1,621,060

-

4,293,949

Corporate bonds

-

123,327

-

123,327

87,021

37,896

-

124,917

Total debt instruments at fair value through OCI

4,510,143

3,467,532

-

7,977,675

2,948,548

4,296,903

-

7,245,451

Total debt instruments

11,728,292

7,220,244

81,389

19,029,925

14,635,267

7,533,593

113,058

22,281,918

Equity securities

Equity securities

30,884

51,531

491,440

573,855

35,833

109,314

335,006

480,153

Total equity securities

30,884

51,531

491,440

573,855

35,833

109,314

335,006

480,153

Derivative financial instruments

Forwards

Foreign exchange contracts

-

982,212

591,740

1,573,952

-

251,299

478,068

729,367

Equity contracts

-

5,414

105

5,519

-

6,483

313

6,796

Total forwards

-

987,626

591,845

1,579,471

-

257,782

478,381

736,163

Swaps

Foreign exchange contracts

-

1,940,303

454,529

2,394,832

-

1,007,173

415,182

1,422,355

Interest rate contracts

266,708

569,749

29,170

865,627

89,069

111,696

46,393

247,158

Total swaps

266,708

2,510,052

483,699

3,260,459

89,069

1,118,869

461,575

1,669,513

Options

Foreign exchange contracts

-

4,240

117,067

121,307

368

3,578

44,383

48,329

Total options

-

4,240

117,067

121,307

368

3,578

44,383

48,329

Total derivative financial instruments

266,708

3,501,918

1,192,611

4,961,237

89,437

1,380,229

984,339

2,454,005

Investment properties

Lands

-

-

184,952

184,952

-

-

182,500

182,500

Buildings

-

-

3,809,106

3,809,106

-

-

2,949,720

2,949,720

Total investment properties

-

-

3,994,058

3,994,058

-

-

3,132,220

3,132,220

Investment in associates at fair valure

Investment in associates at fair valure

-

-

1,532,156

1,532,156

-

-

1,358,368

1,358,368

Total investment in associates at fair value

-

-

1,532,156

1,532,156

-

-

1,358,368

1,358,368

Total

12,025,884

10,773,693

7,291,654

30,091,231

14,760,537

9,023,136

5,922,991

29,706,664

Schedule of fair-value hierarchy levels the Bank's liabilities that are measured at fair value on a recurring basis

Financial liabilities

December 31, 2022

December 31, 2021

Type of instrument

Fair value hierarchy

Total fair

Fair value hierarchy

Total fair

Level 1

Level 2

Level 3

value

Level 1

Level 2

Level 3

value

In millions of COP

Derivative financial instruments

Forwards

Foreign exchange contracts

-

1,523,795

187,849

1,711,644

-

535,535

70,002

605,537

Equity contracts

-

7,203

-

7,203

-

25,068

-

25,068

Total forwards

-

1,530,998

187,849

1,718,847

-

560,603

70,002

630,605

Swaps

Foreign exchange contracts

-

1,757,219

160,178

1,917,397

-

798,396

162,442

960,838

Interest rate contracts

227,847

728,793

51,662

1,008,302

76,925

227,220

4,312

308,457

Total swaps

227,847

2,486,012

211,840

2,925,699

76,925

1,025,616

166,754

1,269,295

Options

Foreign exchange contracts

-

92,908

-

92,908

-

61,209

-

61,209

Total options

-

92,908

-

92,908

-

61,209

-

61,209

Total derivative financial instruments

227,847

4,109,918

399,689

4,737,454

76,925

1,647,428

236,756

1,961,109

Total

227,847

4,109,918

399,689

4,737,454

76,925

1,647,428

236,756

1,961,109

Schedule of fair-value hierarchy levels the Bank's assets and liabilities that are not measured at fair value in the statement of financial position

Assets

December 31, 2022

December 31, 2021

Type of instrument

Fair value hierarchy

Total fair

Fair value hierarchy

Total fair

Level 1

Level 2

Level 3

value

Level 1

Level 2

Level 3

value

In millions of COP

Debt instruments

Securities issued by the Colombian Government

197,749

-

-

197,749

147,502

-

-

147,502

Securities issued or secured by government entities

-

3,041,314

-

3,041,314

-

50,598

2,647,497

2,698,095

Securities issued by other financial institutions

272,157

307,960

-

580,117

294,421

294,717

3,106

592,244

Securities issued by foreign governments

248,735

517,661

-

766,396

318,035

182,987

-

501,022

Corporate bonds

1,183,046

37,977

2,440,277

3,661,300

1,039,185

15,034

1,509,189

2,563,408

Total – Debt instruments

1,901,687

3,904,912

2,440,277

8,246,876

1,799,143

543,336

4,159,792

6,502,271

Loans and advances to customers, net

-

-

251,336,077

251,336,077

-

-

213,262,329

213,262,329

Total

1,901,687

3,904,912

253,776,354

259,582,953

1,799,143

543,336

217,422,121

219,764,600

Liabilities

December 31, 2022

December 31, 2021

Type of instruments

Fair value hierarchy

Total fair

Fair value hierarchy

Total fair

Level 1

Level 2

Level 3

value

Level 1

Level 2

Level 3

value

In millions of COP

Deposits by customers

-

40,990,191

208,513,614

249,503,805

-

24,126,509

187,493,177

211,619,686

Interbank deposits

-

-

902,132

902,132

-

-

886,405

886,405

Repurchase agreements and other similar secured borrowing

-

-

189,052

189,052

-

-

763,325

763,325

Borrowings from other financial institutions

-

-

19,692,638

19,692,638

-

-

8,551,558

8,551,558

Debt instruments in issue(1)

7,714,800

8,898,934

2,163,085

18,776,819

11,673,618

7,948,718

2,074,500

21,696,836

Preferred shares

-

-

350,978

350,978

-

-

604,025

604,025

Total

7,714,800

49,889,125

231,811,499

289,415,424

11,673,618

32,075,227

200,372,990

244,121,835

(1)As of December 2022, decreases in level 1 correspond to maturities mainly in Bancolombia. For further information see Note 18 Debt instruments in issue.

Schedule of Items Measured at fair value on a non-recurring basis

The Bank measures assets held for sale based on fair value less costs to sell. This category includes certain foreclosed assets and investments in associates held for sale. The fair values were determined using external and internal valuation techniques or third party experts, depending on the type of underlying asset. The following breakdown sets forth the fair value hierarchy of those assets classified by type:

December 31, 2022

December 31, 2021

Fair-value hierarchy

Total fair

Fair-value hierarchy

Total fair

Level 1

Level 2

Level 3

value

Level 1

Level 2

Level 3

value

In millions of COP

Machinery and equipment

-

-

9,918

9,918

-

-

4,340

4,340

Real estate for residential purposes

-

-

63,283

63,283

-

-

101,214

101,214

Real estate different from residential properties

-

-

22,216

22,216

-

-

28,143

28,143

Total

-

-

95,417

95,417

-

-

133,697

133,697

Schedule of Changes in Level 3 Fair-Value Category

The table below presents reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs during 2022 and 2021:

As of December 31, 2022

Balance,

Included

Transfers

Transfers

Balance,

January 1,

in

OCI

Purchases

Settlement

Reclassifications

Prepaids

in to

out of

December 31, 

2022

earnings

level3

level3

2022

In millions of COP

Assets

Debt instruments at fair value though profit or loss

Securities issued or secured by other financial entities

113,058

11,700

-

3,789

(20,031)

-

(19,181)

10,863

(18,809)

81,389

Total

113,058

11,700

-

3,789

(20,031)

-

(19,181)

10,863

(18,809)

81,389

Derivative financial instruments

Foreign exchange contracts

937,633

270,494

-

607,659

(647,914)

(777)

-

547

(4,306)

1,163,336

Interest rate contracts

46,393

19,887

-

9,323

(8,986)

(3,181)

-

49

(34,315)

29,170

Equity contracts

313

-

-

105

(313)

-

-

-

-

105

Total

984,339

290,381

-

617,087

(657,213)

(3,958)

(1)

-

596

(38,621)

1,192,611

Equity securities

Equity securities

335,006

(285)

89,072

(2)

44,949

(18,848)

-

-

41,856

(310)

491,440

Total

335,006

(285)

89,072

44,949

(18,848)

-

-

41,856

(310)

491,440

Investment in associates

PA Viva Malls

1,355,688

189,132

-

-

(14,361)

-

-

-

-

1,530,459

PA Distrito Vera

2,680

(983)

-

-

-

-

-

-

1,697

Total

1,358,368

188,149

-

-

(14,361)

-

-

-

-

1,532,156

Total Assets

2,790,771

489,945

89,072

665,825

(710,453)

(3,958)

(19,181)

53,315

(57,740)

3,297,596

Liabilities

Derivative financial instruments

Foreign exchange contracts

232,444

88,743

-

188,860

(157,374)

(777)

-

-

(3,869)

348,027

Interest rate contracts

4,312

24,825

-

26,323

(332)

(3,181)

-

396

(681)

51,662

Total

236,756

113,568

-

215,183

(157,706)

(3,958)

(1)

-

396

(4,550)

399,689

Total liabilities

236,756

113,568

-

215,183

(157,706)

(3,958)

-

396

(4,550)

399,689

(1)From derivative assets to derivative liabilities classified in level 3 and vice versa.
(2)Mainly in Banistmo S.A. of the TELERED instrument, which also includes conversion adjustments.

As of December 31, 2021

Balance,

Included

Transfers

Transfers

Balance,

January 1,

in

OCI

Purchases

Settlement

Reclassifications

Prepaids

in to

out of

December 31, 

2021

earnings

level3

level3

2021

In millions of COP

Assets

Debt instruments at fair value though profit or loss

Securities issued or secured by other financial entities

122,285

(106)

-

5,034

(14,623)

-

(32,211)

32,679

-

113,058

Corporate bonds

10,792

-

-

-

(7,127)

-

-

-

(3,665)

-

Total

133,077

(106)

-

5,034

(21,750)

-

(32,211)

32,679

(3,665)

113,058

Derivative financial instruments

Foreign exchange contracts

580,206

105,528

-

532,190

(456,806)

(19,593)

-

235,709

(39,601)

937,633

Interest rate contracts

136,173

(37,024)

-

6,635

(26,569)

(7,308)

-

13,812

(39,326)

46,393

Equity contracts

-

-

-

313

-

-

-

-

-

313

Total

716,379

68,504

-

539,138

(483,375)

(26,901)

(1)

-

249,521

(78,927)

984,339

Equity securities

Equity securities

445,356

(474)

36,656

2,664

(124,343)

-

-

2

(24,855)

335,006

Total

445,356

(474)

36,656

2,664

(124,343)

-

-

2

(24,855)

335,006

Investment in associates

PA Viva Malls

1,263,765

105,202

-

-

(13,279)

-

-

-

-

1,355,688

PA Distrito Vera

-

237

-

1,779

(2,529)

3,193

-

-

-

2,680

Total

1,263,765

105,439

-

1,779

(15,808)

3,193

-

-

-

1,358,368

Total Assets

2,558,577

173,363

36,656

548,615

(645,276)

(23,708)

(32,211)

282,202

(107,447)

2,790,771

Liabilities

Derivative financial instruments

Foreign exchange contracts

91,759

(2,351)

-

71,358

(52,311)

(19,593)

-

160,156

(16,574)

232,444

Interest rate contracts

2,439

7,694

-

648

(28)

(7,308)

(1)

-

3,278

(2,411)

4,312

Total

94,198

5,343

-

72,006

(52,339)

(26,901)

(1)

-

163,434

(18,985)

236,756

Total liabilities

94,198

5,343

-

72,006

(52,339)

(26,901)

-

163,434

(18,985)

236,756

(1)From derivative assets to derivative liabilities classified in level 3 and vice versa.
Schedule of transfers for all assets and liabilities measured at fair value on a recurring basis between Level 1 and Level 2

The table below presents the transfers for all assets and liabilities measured at fair value on a recurring basis between Level 1 and Level 2 as of December 31, 2022 and 2021:

December 31, 2022

December 31, 2021

Transfers level 1

Transfers level

Transfers level

Transfers level

to level 2

2 to level 1

1 to level 2

2 to level 1

Debt instruments at fair value though profit or loss

Securities issued or secured by foreign government

-

15,885

-

-

Securities issued or secured by government entities

-

14,459

-

-

Corporate bonds

5,282

-

-

-

Securities issued by the Colombian Government

-

5,103

-

-

Securities issued or secured by other financial entities

-

-

10,293

-

Total

5,282

35,447

10,293

-

Debt instruments at fair value through OCI

Securities issued or secured by foreign government

-

950,235

-

-

Corporate bonds

90,010

-

-

-

Total

90,010

950,235

-

-

Equity securities

Equity securities

-

15,858

80,990

-

Total

-

15,858

80,990

-

Schedule of significant unobservable inputs related to the Bank's material categories of Level 3 financial assets and liabilities and the sensitivity of these fair values to reasonably possible alternative assumptions

As of December 31, 2022

Sensitivity

Sensitivity

Valuation

Significant

Range of

Weighted

100

100

Financial instrument

Fair Value

technique

unobservable input

inputs

average

basis point

basis point

increase

decrease

Amounts in millions of COP

Debt instruments

Securities issued by other financial institutions

TIPS

76,014

Discounted cash flow

Yield

2.06% a 9.89

%

4.93

%

71,208

75,021

Prepayment Speed

n/a

n/a

77,349

n/a

Time deposits

5,375

Discounted cash flow

Interest rate

4.10% a 5.20

%

5.00

%

5,033

5,438

Total debt instruments

81,389

Equity securities

Equity securities

491,440

Price-based

Price

n/a

n/a

n/a

n/a

Derivative financial instruments

Forward

403,996

Discounted cash flow

Credit spread

0% a 59.47

%

11.05

%

405,806

410,413

Swaps

271,859

Discounted cash flow

Credit spread

0% a 39.33

%

7.85

%

265,949

278,192

Options

117,067

Discounted cash flow

Credit spread

0.10% a 36.40

%

0.64

%

116,182

117,636

Total derivative financial instruments

792,922

Investment in associates

P.A Viva Malls

1,530,459

Price-based

Price

n/a

n/a

n/a

n/a

P.A Distrito Vera

1,697

Price-based

Price

n/a

n/a

n/a

n/a

Total investment in associates

1,532,156

As of December 31, 2021

Sensitivity

Sensitivity

Valuation

Significant

Range of

Weighted

100

100

Financial instrument

Fair Value

technique

unobservable input

inputs

average

basis point

basis point

increase

decrease

In millions of COP

Debt instruments

Securities issued by other financial institutions

TIPS

98,383

Discounted cash flow

Yield

0.14% a 5.46

%

2.74

%

96,097

100,779

Prepayment Speed

n/a

n/a

95,889

102,148

Other bonds

9,635

Discounted cash flow

Yield

1.16% a 1.16

%

1.16

%

9,276

10,014

Liquidity risk

2.55% a 2.55

%

2.55

%

9,281

10,008

Time deposits

5,040

Discounted cash flow

Interest rate

0.47% a 4.25

%

3.84

%

4,989

5,053

Total debt instruments

113,058

Equity securities

Equity securities

335,006

Price-based

Price

n/a

n/a

n/a

n/a

Derivative financial instruments

Forward

408,379

Discounted cash flow

Credit spread

0% a 32.81

%

6.83

%

406,899

409,594

Swaps

294,821

Discounted cash flow

Credit spread

0% a 28.85

%

3.82

%

309,046

285,805

Options

44,383

Discounted cash flow

Credit spread

0.14% a 37.57

%

0.63

%

44,048

44,575

Total derivative financial instruments

747,583

Investment in associates

P.A Viva Malls

1,355,688

Price-based

Price

n/a

n/a

n/a

n/a

P.A Distrito Vera

2,680

Price-based

Price

n/a

n/a

n/a

n/a

Total investment in associates

1,358,368