BANCOLOMBIA SA | CIK:0001071371 | 3

  • Filed: 4/30/2018
  • Entity registrant name: BANCOLOMBIA SA (CIK: 0001071371)
  • Generator: DataTracks
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1071371/000114420418023396/0001144204-18-023396-index.htm
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    • ifrs-full:DisclosureOfDiscontinuedOperationsExplanatory

    NOTE 30. DISCONTINUED OPERATIONS
     
    Compañía de financiamiento Tuya S.A is a private entity oriented to offer lines of credit directed to individuals, corporate credit cards, vehicle loan and payroll loans among others, as a result of which Tuya has achieved a significant market share position in the consumer loan market in Colombia.
     
    On October 31, 2016 Bancolombia S.A, announced that, after obtaining all the required regulatory approvals, the sale agreement announced in a press release on July 1, 2015, pursuant to which Bancolombia S.A (“Bancolombia”), the Fondo de Empleados of Grupo Bancolombia - FEBANC and Fundacion Bancolombia, (together, the “Sellers”), transferred to Almacenes Éxito S.A (“Almacenes Exito”) and Almacenes Éxito Inversiones S.A.S (together, the “Buyers”) 50% of the shares of Compañia de Financiamiento Tuya S.A (“Tuya”), entered into effect. The total purchase price of the transaction was COP 79,017.
     
    As a result of this transaction:
     
    1.
    Tuya is jointly controlled by the strategic partners since October 30, 2016. 
     
    2.
    Tuya’s shares formerly owned by the Bank will now be owned by Bancolombia S.A. and its subsidiaries Banca de Inversión Bancolombia S.A. Corporación Financiera and BIBA Inmobiliaria SAS.
     
    3.
    Tuya’s assets and liabilities were derecognized at their carrying amounts at October 31, 2016, which is considered the date when the Bank’s control was lost. Likewise the Bank recognized the fair value of the non-controlling interest in Tuya amounting to COP 343,108 as a joint venture. The fair value of the consideration received amounted to COP 79,017 and as a result of this transaction the Bank recognized an income by COP 263,770 (associated with the remeasurement of the fair value) in the statement of income in the line “Income from discontinued operations”, and the related occasional earning tax amounted to COP 659 and the deferred income tax amounted to COP 99,614.
     
    Analysis of the results of discontinued operations:
     
    Results of operations as of October 31, 2016 and as of December 31, 2015, recognized in the Consolidated Statement of Income as Net income from discontinued operations, are the following:
     
     
    Ten months
    ended October
    31, 2016
    Year ended
    December 31,
    2015
    In millons of COP
    Interest income on loans
    408,233
    403,382
    Overnight and market funds
    320
    53
    Interest and valuation on investment
    1,246
    698
    Total interest and valuation
    409,799
      404,133
    Interest expense
    (106,110)
    (74,919)
    Net margin on financial instruments
    303,689
    329,214
    Credit impairment charges on loans, net
    (323,290)
    (324,309)
    Net interest and valuation income after provision for loans and financial leases
    (19,601)
    4,905
    Fees and other service income, net
    244,193
    235,806
    Other operating income
    1,365
    267
    Total income, net
    225,957
      240,978
    Total operating expenses
    (221,310)
    (219,532)
    Profit before tax
    4,647
    21,446
    Income tax
    (2,961)
    1,067
    Net income from discontinued operations
    1,686
    22,513
     
    Assets classified as held for sale
     
    At December 31, 2015 Compañía de financiamiento Tuya was composed of assets and liabilities as presented below: 
     
     
    December 31, 2015
    In millions of COP
    Assets
     
    Cash and balances at central bank
    207,963
    Financial assets investments
     31,265
    Loans and advances to customers
    1,831,773
    Allowance for loan and lease losses
    (351,375)
    Intangible assets
    2,267
    Premises and equipment
    5,746
    Prepayments
    724
    Tax receivables
     11,152
    Deferred tax
     32,726
    Other assets
     48,738
    Total Assets
    1,820,979
    Liabilities
     
    Deposit from customers
    1,266,305
    Borrowings from other financial institutions
    378
    Debt securities in issue
    150,032
    Currrent Tax
    1,535
    Deferred tax liabilities
     28,503
    Other liabilities
    158,380
    Total liabilities
    1,605,133
    Net assets classified as held for sale
    215,846
      
    Cash flow from discontinued operations
     
    For the year ended December 31, 2015 Compañía de Financiamiento Tuya S.A. had the following cash flows:
     
     
    2015
    In millions of COP
    Cash flows provided by operating activities:
     
    Net Income
    22,508
    Total net income adjustments
    308,945
    Net changes of assets and liabilities
    (243,153)
    Net cash provided by operating activities
    88,300
    Cash flows provided by (used in)  investing activities:
     
    Net cash provided by (used in)  investing activities
    12,259
    Cash flows used in financing activities:
     
    Net cash used in financing activities
    (42,823)
    Net increased in cash
    57,736
    Cash at the beginning of the year
    150,225
    Cash at the end of the year
    207,961