Bancolombia delivers double-digit profit growth in Q4

Bancolombia – Colombia's largest bank – closed last year with an 11% year-on-year increase in Q4 net income to 656bn pesos (US$203mn).

Net profits for the full year were up 5.5% to 2.52bn pesos, Bancolombia said in a results release.

The result for Q4 was 14.5% above the Bloomberg consensus forecast and 1% above the projection of Deutsche Bank.

The bank posted a full year ROE of 13.6% that was boosted by several items, including a low tax rate and low provisions. Deutsche Bank noted that Bancolombia's profitability remains low when compared to several other large banks in Latin America.

Net interest income rose 20.4% in 2015 and 13.6% in Q4, while net fee income advanced 9.2% and 2.2% in the same comparison.

Lending expanded 27.2% in 2015 on the back of local currency depreciation and the incorporation of Banco Agromercantil in Guatemala, Bancolombia said.

The non-performing loan ratio remained stable over the third quarter and finished the year at 3.0%.