Enhanced Investments - Financial Portal

Published: 2024-11-14 16:01:20 ET

EX-2 3 bancolombiaseparatefinanci.htm EX-2 Document





SEPARATE INTERIM FINANCIAL STATEMENTS FOR THE NINE-MONTHS PERIOD ENDED SEPTEMBER 30, 2024 AND 2023 AND THE THREE-MONTHS PERIOD FROM JULY 01 TO SEPTEMBER 30, 2024 AND 2023

CONDENSED SEPARATE INTERIM STATEMENT OF FINANCIAL POSITION

BANCOLOMBIA S.A.

As of September 30, 2024 and December 31, 2023

(Stated in millions of Colombian pesos)


	Note	September 30, 2024	December 31, 2023
ASSETS
Cash and cash equivalents	3	14,713,647	24,348,860
Financial assets investments, net	4.1	21,642,191	13,757,902
Derivative financial instruments	4.2	2,455,124	6,215,942
Financial assets investments, net and derivative financial instruments		24,097,315	19,973,844
Loans and advances to customers		186,261,329	182,921,469
Allowance for loans, advances and lease losses		(13,644,815)	(12,892,352)
Loans and advances to customers, net	5	172,616,514	170,029,117
Assets held for sale and inventories, net		473,246	459,328
Investment in subsidiaries	6	27,768,890	24,751,945
Investment in associates and joint ventures		208,099	298,598
Premises and equipment, net	7	4,851,992	5,446,056
Investment properties		776,120	574,550
Right of use asset under lease agreements		1,263,723	1,228,649
Intangible assets, net		357,477	345,553
Other assets, net	9	5,253,819	4,133,838
TOTAL ASSETS		252,380,842	251,590,338
LIABILITIES AND EQUITY
LIABILITIES
Deposits by customers	10	172,270,646	170,231,400
Interbank deposits and repurchase agreements and other similar secured borrowing	11	2,308,709	263,751
Derivative financial instruments	4.2	2,528,670	6,699,521
Borrowings from other financial institutions	12	10,086,971	12,000,269
Debt instruments in issue		10,802,377	10,958,823
Lease contracts liabilities, net		1,384,627	1,352,302
Preferred shares		569,477	584,204
Current tax		902,121	1,520
Deferred tax, net	8.4	1,343,276	1,113,359
Employee benefit plans		692,005	684,439
Other liabilities	13	9,413,275	10,619,082
TOTAL LIABILITIES		212,302,154	214,508,670
EQUITY
Share capital		480,914	480,914
Additional paid-in-capital		4,837,497	4,837,497
Appropriated reserves	15	22,898,057	20,292,454
Retained earnings		4,434,421	5,935,658
Accumulated other comprehensive income, net of tax		7,427,799	5,535,145
TOTAL EQUITY		40,078,688	37,081,668
TOTAL LIABILITIES AND EQUITY		252,380,842	251,590,338

The accompanying notes form an integral part of these separate financial statements.

SEPARATE INTERIM STATEMENT OF INCOME

BANCOLOMBIA S.A.

For the nine-months periods ended at September 30, 2024 and 2023

And three-month periods from July 1 to September 30, 2024 and 2023

(Stated in millions of Colombian pesos)


		Accumulated		Quarterly
	Note	2024	2023	2024	2023
Interest on loans and financial leases
Commercial		9,657,428	9,984,169	3,060,250	3,443,770
Consumer		5,301,241	6,169,776	1,687,791	2,047,129
Financial leases		2,603,777	2,699,383	830,275	924,983
Mortgage		2,185,452	2,241,061	646,461	646,805
Small business loans		85,338	107,798	27,237	34,541
Total interest income on loans and financial leases		19,833,236	21,202,187	6,252,014	7,097,228
Interest income on overnight and market funds		21,769	7,537	7,479	4,738
Interest and valuation on financial instruments	16.1	1,333,623	350,085	523,176	263,786
Other interest income		145,470	127,870	36,841	48,339
Total interest and valuation on financial instruments		21,334,098	21,687,679	6,819,510	7,414,091
Interest expenses	16.2	(9,185,911)	(10,359,605)	(2,932,539)	(3,573,932)
Net interest margin and valuation on financial instruments before impairment on loans and financial leases, off balance sheet credit instruments and other financial instruments		12,148,187	11,328,074	3,886,971	3,840,159
Credit impairment charges on loans, advances and financial leases, net	5	(4,429,577)	(4,843,769)	(1,309,113)	(1,575,892)
Credit (impairment) recovery for other financial instruments		(76,858)	(7,857)	(20,861)	34,181
Total credit impairment charges, net		(4,506,435)	(4,851,626)	(1,329,974)	(1,541,711)
Net interest margin and valuation on financial instruments after impairment on loans and financial leases and off balance sheet credit instruments and other financial instruments		7,641,752	6,476,448	2,556,997	2,298,448
Fees and commissions income	16.3.1	4,175,929	3,901,151	1,406,093	1,320,761
Fees and commissions expenses	16.3.2	(2,171,642)	(1,885,103)	(739,875)	(674,229)
Total fees and commissions, net		2,004,287	2,016,048	666,218	646,532
Other operating income, net	16.4	1,477,247	2,241,986	638,039	885,968
Equity method	16.5	1,436,446	1,740,212	457,288	430,509
Dividend income	16.5	3,499	4,410	147	72
Impairment of investments	16.5	(121,788)	-	-	-
Valuation and gains on sale of equity investments	16.5	32,075	64,472	49	8,126
Total income, net		12,473,518	12,543,576	4,318,738	4,269,655
Operating expenses
Salaries and employee benefits	17.1	(2,757,529)	(2,624,298)	(942,497)	(879,895)
Other administrative and general expenses	17.2	(2,445,724)	(2,257,517)	(844,052)	(809,140)
Taxes other than income tax	17.2	(929,465)	(907,446)	(285,264)	(342,881)
Impairment, depreciation and amortization	17.3	(694,352)	(658,342)	(226,335)	(230,989)
Total operating expenses		(6,827,070)	(6,447,603)	(2,298,148)	(2,262,905)
Profit before income tax		5,646,448	6,095,973	2,020,590	2,006,750
Income tax	8.1	(1,171,091)	(1,365,672)	(427,135)	(515,411)
Net income		4,475,357	4,730,301	1,593,455	1,491,339

The accompanying notes form an integral part of these separate interim financial statements.

CONDENSED SEPARATE INTERIM STATEMENT OF COMPREHENSIVE INCOME

BANCOLOMBIA S.A.

For the nine-months periods ended at September 30, 2024 and 2023

And three-month periods from July 1 to September 30, 2024 and 2023

(Stated in millions of Colombian pesos)


		Accumulated		Quarterly
	Note	2024	2023	2024	2023
Net income		4,475,357	4,730,301	1,593,455	1,491,339
Other comprehensive income/(loss) that will not be reclassified to net income
Remeasurement income (loss) related to defined benefit liability		15,014	(22,434)	-	-
Income tax	8.3	(5,289)	8,515	93	33
Net of tax amount		9,725	(13,919)	93	33
Other comprehensive income/(loss) that may be reclassified to net income
Net gain (loss) on valuation of financial instruments (1)	4	1,104	49,973	43,621	(178)
Income tax	8.3	(187)	(17,852)	(17,208)	(13)
Net of tax amount		917	32,121	26,413	(191)
Foreign currency translation adjustments
Exchange differences	6	1,671,619	(4,552,837)	160,710	(1,000,773)
Hedge of net investment in foreign operations	6	(485,195)	1,579,943	(33,194)	276,745
Income tax	8.3	190,709	(631,571)	12,554	(127,689)
Net of tax amount		1,377,133	(3,604,465)	140,070	(851,717)
Equity method surplus
Unrealized gain on investments in subsidiaries using equity method	6	512,077	282,909	12,328	22,835
(Loss) gain on valuation of investments in associates and joint ventures		(50)	136	64	(189)
Net of tax amount		512,027	283,045	12,392	22,646
Total other comprehensive income that may be reclassified to net income		1,890,077	(3,289,299)	178,875	(829,262)
Total other comprehensive income, net of tax		1,899,802	(3,303,218)	178,968	(829,229)
Total comprehensive income		6,375,159	1,427,083	1,772,423	662,110

(1)The net effect as of September 30, 2024 corresponds to the realization of ORI of debt securities (TDS and Bonds) for COP (12,067), equity investments for COP (18,516) and for the valuation of financial instruments of equity investments COP 7,553. The net effect as of September 30, 2023, corresponds to debt securities COP 44,169, due to the valuation of financial instruments of equity investments COP 14,412 and realization of ORI equity investments for COP (8,608) reclassified to the result of the period.

The accompanying notes form an integral part of these separate financial statements.

CONDENSED SEPARATE INTERIM STATEMENT OF CHANGES IN EQUITY

BANCOLOMBIA S.A.

For the nine-months periods ended at September 30, 2024 and 2023

(Stated in millions of Colombian pesos, except per share amounts stated in units of pesos)


						Accumulated other comprehensive income
	Note	Share capital	Additional paid in capital	Appropriated reserves	Financial instruments		Adjustments on first-time application of IFRS	Revaluation of assets	Employee benefits	Equity method surplus (1)	Total other comprehensive income, net	Retained earnings	Total equity
Balance as of January 1, 2024		480,914	4,837,497	20,292,454	173,289		2,555,858	2, 137	(15,765)	2,819,626	5,535,145	5,935,658	37,081,668
Dividend payment corresponding to 509,704,584 common shares and 452,122,416 preferred shares without voting rights, subscribed and paid as of December 31, 2023, at a rate of COP 3,536 per share, payable as follows: COP 884 per share quarterly, on the following dates: April 1, July 2, October 1, 2024 and January 2, 2025.		-	-	-	-		-	-	-	-	-	(3,343,319)	(3,343,319)
Reserve for equity strengthening and future growth.		-	-	2,605,222	-		-	-	-	-	-	(2,605,222)	-
Reserve for social benefit projects and donations.		-	-	-	-		-	-	-	-	-	(33,000)	(33,000)
Reclassification of unclaimed dividends in accordance with Article 85 of the Bank's bylaws to reserves.		-	-	381	-		-	-	-	-	-	-	381
Realization of retained earnings.		-	-	-	-		(7,148)	-	-	-	(7,148)	7,148	-
Equity method from participation in subsidiaries, associates and joint ventures.		-	-	-	-		-	-	-	-	-	(2,201)	(2,201)
Net income		-	-	-	-		-	-	-	-	-	4,475,357	4,475,357
Other comprehensive income	8.3	-	-	-	917 (2)		-	-	9,725	1,889,160	1,899,802	-	1,899,802
Balance as of September 30, 2024		480,914	4,837,497	22,898,057	174,206		2,548,710	2,137	(6,040)	4,708,786	7,427,799	4,434,421	40,078,688

(1)The balance as of September 30, 2024 includes recognition of the equity method on investments in subsidiaries for COP 8,703,080, equity method of investments in associates for COP (2,272), hedging of foreign investments for COP (4,888,976) and deferred tax for COP 896,954.

(2)The balance as of September 30, 2024 includes OCI related to valuation of equity investments for COP 7,553, realization of OCI equity instruments for COP (18,516), OCI related to valuation of debt securities for COP 12,067 and deferred tax for COP (187).

The accompanying notes form an integral part of these separate financial statements.

CONDENSED SEPARATE INTERIM STATEMENT OF CHANGES IN EQUITY

BANCOLOMBIA S.A.

For the nine-months periods ended at September 30, 2024 and 2023

(Stated in millions of Colombian pesos, except per share amounts stated in units of pesos)


						Accumulated other comprehensive income
	Note	Share capital	Additional paid in capital	Appropriated reserves	Financial instruments		Adjustments on first-time application of IFRS	Revaluation of assets	Employee benefits	Equity method surplus (1)	Total other comprehensive income, net	Retained earnings	Total equity
Balance as of January 1, 2023		480,914	4,837,497	16,733,917	123,805		2,557,668	2, 137	(535)	7,075,340	9,758,415	6,931,037	38,741,780
Dividend payment corresponding to 509,704,584 common shares and 452,122,416 preferred shares without voting rights, subscribed and paid as of December 31, 2022, at a rate of COP 3,536 per share, payable as follows: COP 884 per share quarterly, on the following dates: April 3, July 4, October 2, 2023 and January 2, 2024.		-	-	-	-		-	-	-	-	-	(3,343,319)	(3,343,319)
Reserve for equity strengthening and future growth.		-	-	3,557,980	-		-	-	-	-	-	(3,557,980)	-
Reserve for social benefit projects and donations.		-	-	-	-		-	-	-	-	-	(33,000)	(33,000)
Reclassification of unclaimed dividends in accordance with Article 85 of the Bank's bylaws to reserves.		-	-	412	-		-	-	-	-	-	-	412
Realization of retained earnings.		-	-	-	-		(1,277)	-	-	-	(1,277)	1,277	-
Equity method from participation in subsidiaries, associates and joint ventures.		-	-	-	-		-	-	-	-	-	(17,429)	(17,429)
Net income		-	-	-	-		-	-	-	-	-	4,730,301	4,730,301
Other comprehensive income	8.3	-	-	-	32,121 (2)		-	-	(13,919)	(3,321,420)	(3,303,218)	-	(3,303,218)
Balance as of September 30, 2023		480,914	4,837,497	20,292,309	155,926		2,556,391	2,137	(14,454)	3,753,920	6,453,920	4,710,887	36,775,527

(1)The balance as of September 30, 2023 includes recognition of the equity method on investments in subsidiaries for COP 7,681,420, equity method of investments in associates for COP (2,259), hedging of foreign investments for COP (4,772,671) and deferred tax for COP 847,430.

(2)The balance as of September 30, 2023 includes OCI for financial instruments for COP 14,412, realization of OCI equity instruments for COP (8,608), OCI for debt securities for COP 44,169 and deferred tax for COP (17,852).

The accompanying notes form an integral part of these separate financial statements.

CONDENSED SEPARATE INTERIM STATEMENT OF CASH FLOW

BANCOLOMBIA S.A.

As of September 30, 2024 and 2023

(Stated in millions of Colombian pesos)


	Note	September 30, 2024	September 30, 2023
Net income		4,475,357	4,730,301
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and impairment	17.3	694,352	658,342
Equity method	16.5	(1,436,446)	(1,740,212)
Investment recovery	4.1	121,788	(3,936)
Credit impairment charges on loans and financial leases, net	5	4,429,577	4,843,770
Other assets impairment		76,832	11,792
Net interest income		(10,829,254)	(11,007,629)
Gain on sale of equity instruments	16.5	(18,516)	(63,482)
Gain on sale of portfolio and other assets		(110,591)	(243,362)
Gain on sale of property and equipment	16.4	(21,049)	(4,079)
Gain on repositioning of inventories and sale of assets held for sale	16.4	(104,265)	(100,343)
Gain on valuation of financial instruments at fair value - Debt instruments	16.1	(1,038,886)	(244,109)
Gain on valuation of financial instruments at amortized cost		(217,746)	(224,157)
Gain on valuation of equity instruments		(13,559)	(991)
Loss on valuation of spot transactions	16.1	18,847	52,148
Gain on derivative financial instruments		(66,870)	(279,831)
Gain on valuation of investment properties		(4,302)	-
Other provisions		16,816	(1,664)
Bonds and short-term benefits		274,072	409,699
Other non-cash items		8,309	223
Preferred shares dividend expense	16.2	42,975	42,975
Dividends on equity investments	16.5	(3,499)	(4,410)
Effect of exchange rate changes		(443,534)	(252,265)
Income tax expense	8	1,171,091	1,365,672
Change in operating assets and liabilities:
Increase financial instruments measured at fair value through profit and loss		(6,895,004)	(275,089)
Increase loan portfolio and financial leasing operations		(6,500,183)	(5,250,814)
Increase other accounts receivable		(359,189)	(186,810)
(Increase) decrease derivatives		(341,804)	101,290
Increase other assets		(847,449)	(1,350,047)
Increase deposits		2,062,844	4,846,752
Decrease in accounts payable		(458,770)	(523,803)
(Decrease) increase in other liabilities and provisions		(736,525)	14,078
Interest received		19,566,888	19,742,104
Received dividends		1,249,115	1,854,727
Proceeds from sale of assets held for sale and inventories		810,580	309,620
Recovery of charged-off receivables account	5	416,525	292,900
Interest paid		(9,043,082)	(9,449,191)
Income tax paid		(1,162,979)	(1,887,490)
Net cash (used in) provided by operating activities		(5,217,534)	6,182,679
Cash flows from investment activities
Investments Purchase:		(2,679,920)	(3,378,602)
Investments at amortized cost		(2,342,491)	(2,619,612)
Financial instruments measured at fair value through ORI - Debt securities		(139,547)	(500,235)
Investments in subsidiaries		(118,645)	(218,658)
Investments in associates and joint ventures		(79,237)	(40,097)
Investments sale:		2,769,051	3,120,114
Investments at amortized cost		2,367,071	2,887,959
Financial instruments measured at fair value through ORI - Debt securities		383,456	223,199
Financial instruments measured at fair value through ORI – Equity investment		18,516	8,956
Investments in subsidiaries		8	-
Acquisition of property and equipment		(582,201)	(993,826)
Acquisition of investment property		(197,269)	(43,682)


Proceeds from sale of property and equipment		96,234	47,672
Acquisition of intangible assets		(60,138)	(69,561)
Net cash used in investing activities		(654,243)	(1,317,885)
Cash flows from Financial activities:
Decrease interbank		-	(400,913)
Increase in monetary and related market operations		2,044,957	286,237
Opening of financial obligations		1,942,503	3,350,269
Cancellation of financial obligations		(4,401,152)	(3,323,985)
Lease liabilities		(84,923)	(87,935)
Issuance of debt securities		970,164	277,506
Cancellation of debt securities		(1,944,065)	(2,180,198)
Dividends paid		(2,549,343)	(2,448,754)
Net cash used in financial activities		(4,021,859)	(4,527,773)
(Decrease) increase in cash and cash equivalents, before the effect of exchange rate changes		(9,893,636)	337,021
Effect of exchange rate variations on cash and cash equivalents		258,423	(359,662)
Decrease in cash and cash equivalents		(9,635,213)	(22,641)
Cash and cash equivalents at the beginning of the period	3	24,348,860	16,233,804
Cash and cash equivalents at the end of the period	3	14,713,647	16,211,163

The statement of cash flows includes the following non-cash transactions, which were not reflected in the separate statement of cash flows:

a)Restructured loans and repossessed assets that were transferred to assets held for sale, inventories and other assets, for COP 176,427 and COP 177,769.

The accompanying notes form an integral part of these separate financial statements.

SEPARATE FINANCIAL STATEMENTS NOTES

BANCOLOMBIA S.A.

NOTE 1. REPORTING ENTITY

Bancolombia S.A., hereinafter the Bank, is a credit establishment, listed on the Colombia Stock Exchange (BVC) as well as on the New York Stock Exchange (NYSE), since 1981 and 1995, respectively. The Bank main location is in Medellín (Colombia), main address Carrera 48 # 26-85, Avenida Los Industriales, and was originally constituted under the name Banco Industrial Colombiano (BIC) according to public deed number 388, date January 24, 1945, from the First Notary's Office of Medellin, authorized by the Superintendence of Finance of Colombia (“SFC”). On April 3, 1998, by means of public deed No. 633, BIC merged with Bank of Colombia S.A., and the resulting organization of that merger was named Bancolombia S.A.

The duration contemplated in the bylaws is until December 8, 2144, but it may be dissolved or renewed before the end of that period.

Bancolombia´s bylaws are formalized in the public deed number 2040, dated July 26, 2024, at the 20th Notary´s Office of Medellín.

Bancolombia S.A. business purpose is to carry out all operations, transactions, acts and services inherent to the banking business. The Bank may, by itself or through its subsidiaries, own interests in other corporations, wherever authorized by law, according to all terms and requirements, limits or conditions established therein.

The operating license was authorized definitively by the SFC according to Resolution number 3140 on September 24, 1993.

The Bank, through its subsidiaries, has banking operations and international presence in United States, Puerto Rico, Panamá Guatemala and El Salvador.

The assets and liabilities of the operations in Barbados through Mercom Bank were transferred to other companies, leaving the balances of the credit portfolio and deposit portfolio at zero. The company is in the process of dissolution and liquidation.

For its part, operations in the Caiman Islands through Bancolombia Cayman have been canceled or transferred. The company is in the process of dissolution and liquidation. The General Assembly of Shareholders of Transportempo S.A.S approved the liquidation of the company, making the corresponding adjudications and approvals of its final accounts. The above is recorded in Minute No. 98 of July 3, 2024.

On December 14, 2021, the Bank's Board of Directors authorized the legal separation of the Nequi business, the digital platform of Grupo Bancolombia which offers financial services. The Superintendence of Finance of Colombia, through Resolution 0843 of July 6, 2022, modified by the Resolution 0955 of July 27, 2022, authorized the constitution of Nequi S.A. Financial Company. The legal separation implied the creation and commercial registration of a new corporation which will be supervised by the Superintendence of Finance of Colombia through which Nequi will operate completely as a digital bank (compañía de financiamiento). In order to be able to operate, compliance with all the activities required to obtain the authorization certificate or operating permit must be accredited to the Superintendence of Finance of Colombia. On September 2022 the company NEQUI S.A.S. was created with a capitalization of COP 150,000 distributed mainly between Banca de Inversión Bancolombia S.A. with a participation of 94.99% and Inversiones CFNS S.A.S. with 5.01%.

On July 22, 2022, through the subsidiary Sistemas de inversiones y negocios S.A. SINESA, the company Wenia LTD, a corporate vehicle whose purpose is to provide technology services, was incorporated in Bermuda. By private document of October 18, 2022, Wenia LTD as the sole shareholder, registered on November 22, 2022 in the Medellín Chamber of Commerce, the commercial nature company called Wenia S.A.S., whose purpose is, among others, the creation and implementation of operating systems and software applications. On April 9, 2024, the participation held by Sistemas de Inversiones y Negocios S.A. in Wenia LTD was transferred to Banca de Inversión Bancolombia S.A.

As of september 30, 2024, the Bank has 22,563 employees, operates through 28,147 banking correspondents, 4,613 ATM’s, 565 offices and 489 mobile service points in Colombian territory.

NOTA 2. MATERIAL ACCOUNTING POLICIES

A.Basis for preparation condensed interim financial statements

The condensed separate interim financial statements for the cumulative nine months ended on September 30, 2024 have been prepared in accordance with International

Accounting Standard 34: Interim Financial Reporting (“IAS 34”), issued by the International Accounting Standards Board (hereinafter, IASB). The condensed consolidated interim financial statements as of September 30, 2024 and 2023 have not been audited.

The condensed separate financial statements, being of an interim nature, do not include all the information and disclosures required for full annual financial statements, and therefore, should be read together with the Bank's condensed separate financial statements as of the close of the fiscal year ended December 31, which complied with the Normas de Contabilidad e Información Financiera (“NCIF”) accepted in Colombia, in accordance with the Marco Técnico Normativo issued through the Decreto Único Reglamentario 2420 of 2015 and its amendments, by the Ministerio de Hacienda y Crédito Público and Ministerio de Comercio, Industria y turismo. These interim financial statements have not been audited.

This framework is based on International Financial Reporting Standards (hereinafter, IFRS) issued by the IASB, as well as the interpretations issued by the International Financial Reporting Interpretations Committee (hereinafter, IFRS-IC), and exempts the application of IAS 39 and IFRS 9, only with respect to the loan portfolio and its impairment and the classification and valuation of investments, which are recognized, classified and measured in accordance with the provisions of the Superintendence of Finance of Colombia contained in the Circular Externa 100 of 1995, and IFRS 5 for the determination of impairment of foreclosed assets, which are impaired in accordance with the provisions of the SFC. The above provisions are considered NCIF accepted in Colombia.

Preparation of the condensed separate interim financial statements undergoing concern basis

Management has assessed the Bank’s ability to continue as a going concern and confirms that the Bank has adequate liquidity and solvency to continue operating the business for the foreseeable future, which is at least, but is not limited to, 12 months from the end of the reporting period. Based on the Bank's liquidity position at the date of authorization of the condensed separate interim financial statements, Management maintains a reasonable expectation that it has adequate liquidity and solvency to continue in operation for at least the next 12 months and that the going concern basis of accounting remains appropriate.

In the Management opinion, these condensed separate interim financial statements reflect all material adjustments considered necessary in the circumstances and based on the best information available as of September 30, 2024 and the date of their promulgation and issuance, for a fair representation of financial results for the interim periods presented.

The results of operations for the cumulative nine months ended on September 30, 2024 and 2023 are not necessarily indicative of the results for the full year. The Bank believes that the disclosures are sufficient to make the information presented not misleading or biased. For this reason, the condensed separate interim financial statements include selected explanatory notes to explain events and transactions that are important to the financial statements users or represent significant materiality in understanding the

changes in the Bank’s financial position and performance since the last annual audited financial statements.

Assets and liabilities are measured at cost or amortized cost, except for some financial assets and liabilities and investment properties that are measured at fair value. Financial assets and liabilities measured at fair value comprise those classified as assets and liabilities at fair value through profit or loss and equity securities measured at fair value through other comprehensive income (“OCI”). Almost, investments in associates, joint ventures and subsidiaries are measured using the equity method.

The condensed interim financial statements are stated in Colombian pesos (“COP”) and figures are stated in millions, except the exchange rate, which are stated in units of Colombian pesos, while other currencies (dollars, euro, pounds, etc.) are stated in thousands.

B.Use of estimates and judgments

The preparation condensed separate interim financial statements requires that the Bank's Management makes judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.

The estimates and underlying assumptions are reviewed on an ongoing basis. Changes in accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

For the period ended on September 30, 2024 there were no changes in the significant estimates and judgments made by Management in applying the Bank's accounting, as compared to those applied in the financial statements at the year ended on December 31, 2023.

C.Material accounting policies and recently issued accounting pronouncements.

The same accounting policies and methods of calculation applied in the financial statements at the end of the year ended on December 31, 2023 continue to be applied in these condensed separate interim financial statements, except for the adoption of new standards, improvements and interpretations effective from January 1, 2024, as shown below:

Amendments to IAS 1 Presentation of Financial Statements:

On January 23, 2020, the IASB issued amendments to IAS 1 to clarify the requirements for classifying liabilities as current or non-current. More specifically:

-The amendments specify that the conditions which exist at the end of the reporting period of an obligation are those which will be used to determine if a right to defer settlement of a liability exists.

-Management expectations about events after the balance sheet date, for example on whether a covenant will be breached, or whether early settlement will take place, are not relevant.

-The amendments clarify the situations that are considered settlement of a liability.

Additionally, on October 30, 2022, the IASB issued an amendment to IAS 1 to improve the disclosures an entity provides when its right to defer settlement of a liability for at least twelve months is subject to compliance with covenants, and how this impacts the classification of that liability as current or non-current.

The amendments to IAS 1 are required to be applied for annual periods beginning on or after January 1, 2024, which is consistent with the application period in Colombia, in accordance with Decreto 938 of August 2021, which includes the update of January 23, 2020. The amendments must be applied retrospectively, in accordance with IAS 8. Early application is permitted.

Management concluded that this amendment has no impact on the preparation of the condensed separate interim financial statements, because the Bank presents the condensed separate interim statement of financial position ordered by liquidity, according to the business nature.

a)Recently accounting pronouncements issued by IASB pending to incorporate in NCIF framework accepted in Colombia.

Amendments to IFRS 16 Leases - Lease liability in a sale and leaseback:

In September 2022, the IASB amended IFRS 16 to add subsequent measurement requirements for sale and leaseback transactions that meet the requirements of IFRS 15 to be accounted as a sale. The amendments require a seller-lessee to subsequently measure lease liabilities arising from a subsequent lease such that it does not recognize any amount of gain or loss that relates to the right-of-use that it retains.

This amendment is effective for annual periods beginning on or after January 1, 2024, and early application is permitted.

This amendment has been assessed by Management with no evidence of an impact on the Bank's condensed separate interim financial statements and disclosures, due the new requirements are in line with what the Bank has applied and disclosed.

Amendments to IFRS 9 Financial instruments and IFRS 7 Financial instruments: disclosures - Classification and measurement of financial instruments:

In May 2024, the Board issued amendments to the classification and measurement requirements in IFRS 9. These amendments respond to feedback from post-implementation review of the accounting standard and clarify the requirements in areas where stakeholders have raised concerns, or where new issues have emerged since IFRS 9 was issued.

These amendments include:

-Clarifying the classification of financial assets with environmental, social and corporate governance (ESG) and similar features: ESG-linked features in loans could affect whether the loans are measured at amortised cost or fair value. To resolve any potential diversity in practice, the amendments clarify how the contractual cash flows on such loans should be assessed.

-Settlement of liabilities through electronic payment systems: The amendments clarify the date on which a financial asset or financial liability is derecognized. The IASB also decided to develop an accounting policy option to allow a company to derecognize a financial liability before it delivers cash on the settlement date if specified criteria are met.

With these amendments, the IASB has also introduced additional disclosure requirements to enhance transparency for investors regarding investments in equity instruments designated at fair value through other comprehensive income and financial instruments with contingent features, for example features tied to ESG-linked targets.

The amendments are effective for annual reporting periods beginning on or after January 1, 2024, and early application is permitted.

Management is assessing the impact that these amendments will have on the Bank's condensed separate interim financial statements and disclosures.

New standard NIIF 18 Presentation and Disclosure in Financial Statements:

In April 2024, the Board issued IFRS 18 to replace IAS 1 Presentation of Financial Statements. IFRS 18 introduces three sets of new requirements to improve the way companies report their financial performance and give investors a better basis for analyzing and comparing companies:

Improved comparability in the statement of income: IFRS 18 introduces three defined categories for income and expenses (operating, investing and financing) to improve the structure of the statement of income, and requires all companies to provide new defined subtotals, including operating profit.

Enhanced transparency of management-defined performance measures: The new standard requires companies to disclose explanations of those company-specific measures that are related to the statement of income, referred to as management-defined performance measures.

More useful grouping of information in the financial statements: IFRS 18 sets out enhanced guidance on how to organize information and whether to provide it in the primary financial statements or in the notes. In addition, the new standard requires companies to provide more transparency about operating expenses, helping investors to find and understand the information they need.

IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027, and early application is permitted.

Management is assessing the impact that these amendments will have on the Bank's condensed separate interim financial statements and disclosures.

Annual improvements to IFRS:

On July 18, 2024, the Board issued narrow amendments to IFRS and accompanying guidance as part of its regular maintenance of the Standards. These amendments include clarifications, simplifications, corrections and changes aimed at improving the consistency

of several IFRS, including IFRS 1 First-time Adoption of International Financial Reporting Standards; IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7; IFRS 9 Financial Instruments; IFRS 10 Consolidated Financial Statements; and IAS 7 Statement of Cash Flows.

The amendments are effective for annual periods beginning on or after 1 January 2026, with earlier application permitted.

These amendments have been reviewed by Management and have no impact on the Bank's condensed separate interim financial statements and disclosures, due to the annual improvements are limited to changes that either clarify the wording in an IFRS or correct relatively minor unintended consequences or oversights in the Accounting Standards.

NOTE 3. CASH AND CASH EQUIVALENTS

For purposes of the statement of cash flow and the statement of financial position, the following assets are considered as cash and cash equivalents:


	September 30, 2024	December 31, 2023
In millions of COP
Cash
Cash	7,210,607	6,846,978
Deposits from Colombian Central Bank (1)(2)	1,999,159	7,318,665
Deposits from banks and other private financial institutions	3,958,752	2,203,471
Remittances of domestic negotiated checks in transit	79	309
Checks on hold	-	7,508
Total cash	13,168,597	16,376,931
Monetary market transactions
Reverse repurchase agreements	1,103,214	7,792,496
Interbank borrowings	441,836	179,433
Total monetary market transactions	1,545,050	7,971,929
Total cash and cash equivalents	14,713,647	24,348,860

(1)According to External Resolution No. 3 of 2024 of the Bank of the Republic of Colombia, which modifies External Resolution No. 5 of 2008, Bancolombia S.A. must maintain the equivalent of 7.00% (in December 2023 the equivalent of 8.00% was to be maintained) on the liabilities cited in Article 1, literal (a), and the equivalent of 2.50% (3.50% in December 2023) on deposits received from clients for a term of less than 18 months (literal b), as ordinary reserve, represented in deposits in the Bank of the Republic or as cash in hand.

(2)The decrease is due to the cancellation of interest-bearing deposits for COP 3.5 bn opened in December 2023 and cancelled in January 2024.

(3)As of September 2024, the variation is due to the decrease in Repos in simultaneous operations with the Central Counterparty Clearing House.

As of September 30, 2024 and December 31, 2023, there is restricted cash amounting to COP 495,063 and COP 1,010,562 respectively, included in other assets on the statement of financial position, which represents margin deposits pledged as collateral for derivative contracts traded through Colombian clearing houses.

NOTE 4. FINANCIAL ASSETS INVESTMENTS, NET AND DERIVATIVES

The Bank's portfolio investment in financial instruments and derivatives as of September 30, 2024 and December 31, 2023 is described below:


Financial assets investments and derivative financial instruments	September 30, 2024	December 31, 2023

In millions of COP
Investments in debt securities
Negotiable investments (1)	12,195,800	5,655,077
Available-for-sale investments	3,249,636	3,211,425
Held-to-maturity investments	3,616,432	3,423,265
Subtotal debt securities, net	19,061,868	12,289,767
Pledged financial assets (2)	2,410,504	1,287,391
Total debt securities	21,472,372	13,577,158
Equity instruments (2)	169,819	180,744
Total investment financial assets, net	21,642,191	13,757,902

Total derivative assets (3)	2,455,124	6,215,942

Total derivative liabilities (3)	(2,528,670)	(6,699,521)

(1)As of September 30, 2024, there is an increase in the portfolio negotiable investments of COP 6,540,723, mainly in fix-rate treasury securities issued by the Colombian Government – TES for COP 3,751,256 and corporate bonds for COP 2,958,628 especially in foreign government bonds.

(2)See Note 4.1. Financial assets investments, net.

(3)See Note 4.2. Derivative financial instruments.


4.1. Financial assets investments, net

The detail of the financial investment assets is as follows:

As of September 30, 2024


Debt securities	Measurement methodology			Total carrying amount
	Held for trading	Available-for-sale investments	Held-to-maturity investments
In millions of COP
Treasury securities issued by the Colombian Government - TES	6,877,922	-	-	6,877,922
Corporate bonds	4,838,324	143,605	315,916	5,297,845
Agricultural Development Securities issued by the Colombian Government (TDA)	-	-	3,300,516	3,300,516
Solidarity Securities issued by the Colombian Government (TDS)	-	2,604,496	-	2,604,496
Other public debt	-	501,535	-	501,535
Other financial investment assets	367,516	-	-	367,516
Mortgage-backed securities (TIPS)	112,038	-	-	112,038
Total debt securities	12,195,800	3,249,636	3,616,432	19,061,868

As of December 31, 2023


Debt securities	Measurement methodology			Total carrying amount
	Held for trading	Available-for-sale investments	Held-to-maturity investments
In millions of COP
Treasury securities issued by the Colombian Government - TES	3,126,666	-	-	3,126,666
Corporate bonds	2,002,423	-	336,794	2,339,217
Agricultural Development Securities issued by the Colombian Government (TDA)	-	-	3,086,471	3,086,471
Solidarity Securities issued by the Colombian Government (TDS)	-	2,664,295	-	2,664,295
Other public debt	-	547,130	-	547,130
Other financial investment assets	441,687	-	-	441,687
Mortgage-backed securities (TIPS)	84,301	-	-	84,301
Total debt securities	5,655,077	3,211,425	3,423,265	12,289,767

The following table shows the detail of debt securities maturity:

As of September 30, 2024


Debt securities	Less than 1 year	Between 1 and 3 years	Between 3 and 5 years	Greater than 5 years		Total
In millions of COP
Negotiable investments
Treasury securities issued by the Colombian Government - TES	1,690,301	2,061,351	1,641,029	1,485,241	6,877,922
Corporate bonds	4,383,564	138,214	71,961	244,585	4,838,324
Other financial investment assets	126,226	133,898	101,705	5,687	367,516
Mortgage- backed securities (TIPS)	909	2,738	18,086	90,305	112,038
Subtotal negotiable investments	6,201,000	2,336,201	1,832,781	1,825,818	12,195,800
Available-for-sale investments
Solidarity Securities issued by the Colombian Government (TDS)	2,604,496	-	-	-	2,604,496
Corporate bonds	-	93,698	49,907	-	143,605
Other public debt	-	-	-	501,535	501,535
Subtotal available-for-sale investments	2,604,496	93,698	49,907	501,535	3,249,636
Held-to-maturity investments
Agricultural Development Securities issued by the Colombian Government (TDA)	3,300,516	-	-	-	3,300,516
Corporate bonds	-	-	215,254	100,662	315,916
Mortgage-backed securities (TIPS)	3,300,516	-	215,254	100,662	3,616,432
Subtotal held-to-maturity investments	12,106,012	2,429,899	2,097,942	2,428,015	19,061,868

As of December 31, 2023

Debt securities

Less than 1 year

Between 1 and 3 years

Between 3 and 5 years

Greater than 5 years

Total

In millions of COP

Negotiable investments


Treasury securities issued by the Colombian Government - TES	301,849	1,757,746	365,919	701,152	3,126,666
Bonds	1,540,796	101,294	42,733	317,600	2,002,423
Other financial investment assets	160,177	146,411	72,981	62,118	441,687
Mortgage- backed securities	848	2,559	10,651	70,243	84,301
Subtotal negotiable investments	2,003,670	2,008,010	492,284	1,151,113	5,655,077
Available-for-sale investments
Solidarity Securities issued by the Colombian Government (TDS)	2,664,295	-	-	-	2,664,295
Other public debt	-	-	-	547,130	547,130
Subtotal available-for-sale investments	2,664,295	-	-	547,130	3,211,425
Held-to-maturity investments
Agricultural Development Securities issued by the Colombian Government (TDA)	3,086,471	-	-	-	3,086,471
Bonds	-	-	-	336,794	336,794
Mortgage-backed securities	3,086,471	-	-	336,794	3,423,265
Subtotal held-to-maturity investments	7,754,436	2,008,010	492,284	2,035,037	12,289,767

For more information related to fair value disclosures of investments classified as held-to-maturity, see Note 20. Fair value of assets and liabilities.

The net effect in the statement of comprehensive income corresponding to the debt securities is COP 12,067 as of September 2024 and COP 44,169 as of September 2023. See Condensed separate interim statement of comprehensive income - Net gain (loss) from valuation of financial instruments.

These assets have no restrictions or limitations as of September 30, 2024 and December 31, 2023, except for the securities pledged as collateral for reverse repurchase agreements and derivatives indicated below:

As of September 30, 2024


Pledged financial assets	Term	Security type	Carrying amount
In millions of COP
Securities issued by the Colombian Government
Investments pledged as collateral in transactions with reverse repurchase agreements	Up to 1 month	Treasury securities	1,962,593
Investments pledged as collateral in transactions with derivatives	Between 1 and 3 months	Treasury securities	447,911
Total securities issued by the Colombian Government			2,410,504
Total pledged financial assets			2,410,504

As of December 31, 2023


Pledged financial assets	Term	Security type	Carrying amount
In millions of COP
Securities issued by the Colombian government
Investments pledged as collateral in transactions with reverse repurchase agreements	Up to 1 month	Treasury securities	810,101
Investments pledged as collateral in transactions with derivatives	Between 1 and 3 months	Treasury securities	477,290


Pledged financial assets	Term	Security type	Carrying amount
In millions of COP
Securities issued by the Colombian government
Total securities issued by the Colombian government			1,287,391
Total pledged financial assets			1,287,391

The detail of investments in equity securities is as follows:


Total equity financial instruments	September 30, 2024	December 31, 2023
In millions of COP
Investments at fair value with changes in OCI (1)	159,395	170,534
Financial instruments measured at fair value with changes in equity with changes in OCI	7,684	7,509
Investments at fair value through profit or loss (2)	2,740	2,701
Total equity financial instruments	169,819	180,744

(1)The detail of this investments is presented in the table “Equity instruments measured at fair value through OCI”.

(2)The category of Investments at fair value through income statement includes the Preferred shares of Compañía de Financiamiento TUYA S.A., for a value of less than COP 1, Renta Fija Plus and Renta Fija Plazo trusts, which were acquired in 2022.

Detail of equity instruments measured at fair value through OCI:


	Carrying amount
Equity instruments measured at fair value through OCI	September 30, 2024	December 31, 2023
In millions of COP
Asociación Gremial de Instituciones Financieras Credibanco S.A.	114,551	110,785
Holding Bursátil Regional S.A.	19,964	23,040
Residual rights (1)	11,093	25,579
Banco Latinoamericano de Comercio Exterior, S.A Bladex	9,589	6,679
Derecho Fiduciario Inmobiliaria Cadenalco	4,197	4,449
Bolsa de Valores de Colombia S.A.	1	2
Total equity instruments measured at fair value through OCI	159,395	170,534

(1)For payments received from Residual rights, COP (18,516) and COP (436) were made from OCI, as of September 30, 2024, and COP (8,608) as of September 30, 2023, which were transferred to results.

Investments in equity securities measured at fair value through OCI are considered strategic for the Bank and, therefore, there is no intention to sell them in the foreseeable future. That is the reason why this alternative is used for its presentation.

The net effect of valuation in the statement of comprehensive income corresponding to equity investment financial securities is COP 7,553 as of September 2024 and COP 14,412 as of September 2023. See Condensed Separate Interim Statement of Comprehensive Income - Net gain (loss) on valuation of financial instruments.

Dividends on equity securities through OCI recognized as of September 2024, and September 2023 amount to COP 3,499 and COP 4,410, respectively. See Note 16.5. Equity investment income.

As of September 30, 2024 and December 31, 2023 there were no impairment losses on equity securities. These investments do not have a maturity date therefore, they are not included in the maturity detail.


4.2. Derivative financial instruments

The Bank derivative activities do not give rise to significant open positions in portfolios of derivatives. The Bank enters derivative transactions to facilitate customer business, for hedging purposes and arbitrage activities, such as forwards, options, or swaps where the underlying assets are exchange rates, interest rates, and securities.

A swap agreement is a contract between two parties to exchange cash flows based on specified underlying notional amounts, assets, and/or indexes. Financial futures and forward settlement contracts are agreements to buy or sell a quantity of a financial instrument (including another derivative financial instrument), index, currency or commodity at a predetermined rate or price during a period or at a date in the future. Futures and option contracts are standardized agreements for future delivery, traded on exchanges that typically act as a platform.

For further information related to the objectives, policies, and processes for managing the Bank’s risk, please see item Risk Management.

The following table presents the Bank's derivatives by type of risk as of September 30, 2024 and December 31, 2023:


Derivatives	September 30, 2024	December 31, 2023
In millions of COP
Forwards
Assets
Foreign exchange contracts (1)	1,014,623	4,377,677
Equity contracts	9,459	3,014
Subtotal assets	1,024,082	4,380,691
Liabilities
Foreign exchange contracts (1)	(944,000)	(4,522,580)
Equity contracts	(5,151)	(10,481)
Subtotal liabilities	(949,151)	(4,533,061)
Total forwards	74,931	(152,370)
Swaps
Assets
Foreign exchange contracts	1,137,015	1,304,338
Interest rate contracts	205,423	320,325
Subtotal assets	1,342,438	1,624,663
Liabilities
Foreign exchange contracts	(1,231,890)	(1,491,086)
Interest rate contracts	(257,410)	(442,787)
Subtotal liabilities	(1,489,300)	(1,933,873)
Total swaps	(146,862)	(309,210)
Options
Assets
Foreign exchange contracts	88,604	210,588
Subtotal assets	88,604	210,588
Liabilities


Derivatives	September 30, 2024	December 31, 2023
In millions of COP
Foreign exchange contracts	(90,219)	(232,587)
Subtotal liabilities	(90,219)	(232,587)
Total options	(1,615)	(21,999)
Derivative assets	2,455,124	6,215,942
Derivative liabilities	(2,528,670)	(6,699,521)

(1)As of September 30, 2024, there is a decrease in the forward assets and liabilities that were in effect as of December 2023, of the total for 14,105 operations, have matured as of September 2024 for 13,175 operations.

The table below details the amount of derivatives net by maturity:

As of September 30, 2024


	Forward	Swaps	Options	Total
Assets	1,024,082	1,342,438	88,604	2,455,124
Less than 1 year	988,662	362,447	83,106	1,434,215
Between 1 and 3 years	34,544	487,327	5,498	527,369
Greater than 3 years	876	492,664	-	493,540
Liabilities	(949,151)	(1,489,300)	(90,219)	(2,528,670)
Less than 1 year	(925,534)	(405,825)	(82,689)	(1,414,048)
Between 1 and 3 years	(23,617)	(584,273)	(7,530)	(615,420)
Greater than 3 years	-	(499,202)	-	(499,202)

As of December 31, 2023


	Forward	Swaps	Options	Total
Assets	4,380,691	1,624,663	210,588	6,215,942
Less than 1 year	4,231,752	611,487	135,559	4,978,798
Between 1 and 3 years	147,826	517,205	75,029	740,060
Greater than 3 years	1,113	495,971	-	497,084
Liabilities	(4,533,061)	(1,933,873)	(232,587)	(6,699,521)
Less than 1 year	(4,416,129)	(414,233)	(152,284)	(4,982,646)
Between 1 and 3 years	(116,932)	(979,130)	(80,303)	(1,176,365)
Greater than 3 years	-	(540,510)	-	(540,510)

Derivatives' guarantee

The following table presents the cash and securities collateral for derivatives as of September 30, 2024 and December 31, 2023:


	September 30, 2024	December 31, 2023
In millions of COP
Guarantees delivered	942,625	2,297,681
Guarantees received	(280,986)	(787,640)

NOTE 5. LOANS PORTAFOLIO AND FINANCIAL LEASING OPERATIONS, NET

The following is the composition of the loans and financial leasing operations portfolio, net as of September 30, 2024 and December 31, 2023:


Composition	September 30, 2024	December 31, 2023
In millions of COP
Commercial (1)	98,886,924	95,614,822
Consumer	37,218,732	38,862,513
Financial leasing	25,827,644	26,056,199
Mortgage	23,791,185	21,840,258
Small business loans	536,844	547,677
Total loan portfolio and financial leasing operations	186,261,329	182,921,469
Total provision for loan portfolio and leasing operations impairment (2)	(13,644,815)	(12,892,352)
Total loan portfolio and leasing operations, net	172,616,514	170,029,117

(1)The increase was mainly due to new ordinary loans disbursed in 2024.

(2)Includes general provision for loan portfolio and leasing operations, in accordance with SFC regulations:


Provision concept	September 30, 2024	December 31, 2023
In millions of COP
General provision (Circular 026, 2022) (3)	-	353,159
General provision small business loans and mortgage (Circular 100, 1995)	241,156	221,529
Total general provision	241,156	574,688

(1)Based on the performance of the portfolio and leveraged by better quality in the new crops generated since the end of 2022 for consumer credits, the decision was made to use the provision to cover the bearings of this portfolio.

Loans and leasing operations portfolio by risk category

As of September 30, 2024 and December 31, 2023, the loan portfolio and leasing operations are distributed in the following risk categories:

As of September 30, 2024


Commercial	Loans			Provision			Other items
Category	Capital	Interest and/or financial component	Other items	Capital	Interest and/or financial component	Other items
In millions of COP
A – Normal risk	89,262,709	1,293,022	18,359	1,242,562	20,749	592	89,310,187
B – Acceptable risk	1,655,230	36,212	2,159	94,718	3,117	396	1,595,370
C – Appreciable risk	1,642,071	132,474	1,683	318,242	130,194	1,505	1,326,287
D – Significant risk	2,067,250	59,588	15,212	1,484,243	59,588	15,183	583,036
E – Unrecoverable risk	2,653,942	39,597	7,416	2,237,465	39,599	7,259	416,632
Total	97,281,202	1,560,893	44,829	5,377,230	253,247	24,935	93,231,512


Consumer	Loans			Provision			Total net
Category	Capital	Interest and/or financial component	Other items	Capital	Interest and/or financial component	Other items
In millions of COP
A – Normal risk	30,395,475	425,589	57,776	925,128	16,328	2,818	29,934,566
B – Acceptable risk	959,587	28,543	4,354	150,295	8,878	1,899	831,412
C – Appreciable risk	812,317	21,730	4,115	213,797	16,707	3,503	604,155
D – Significant risk	1,189,261	32,567	7,837	1,139,789	32,567	7,825	49,484
E – Unrecoverable risk	3,165,226	88,901	25,454	3,051,249	88,901	25,085	114,346
Total	36,521,866	597,330	99,536	5,480,258	163,381	41,130	31,533,963


Leasing	Loans				Provision			Total net
Category	Capital	Interest and/or financial component	Other items		Capital	Interest and/or financial component	Other items
In millions of COP
A – Normal risk	21,274,511	148,415		2,108,432	376,755	3,262	35,159	23,116,182
B – Acceptable risk	608,063	10,282		49,344	25,693	602	1,618	639,776
C – Appreciable risk	506,761	6,228		19,378	84,945	5,393	14,803	427,226
D – Significant risk	626,267	55,179		40,386	329,677	55,179	39,748	297,228
E – Unrecoverable risk	268,503	78,674		27,221	260,361	78,666	27,221	8,150
Total	23,284,105	298,778		2,244,761	1,077,431	143,102	118,549	24,488,562


Mortgage	Loans			Provision			Total net
Category	Capital	Interest and/or financial component	Other items	Capital	Interest and/or financial component	Other items
In Millions of COP
A – Normal risk	22,134,230	176,335	1,648	457,308	1,837	16	21,853,052
B – Acceptable risk	494,599	4,517	743	31,850	4,517	743	462,749
C – Appreciable risk	315,294	3,905	1,088	46,715	3,905	1,088	268,579
D – Significant risk	408,933	4,142	1,706	90,930	4,142	1,706	318,003
E – Unrecoverable risk	236,691	3,266	4,088	236,691	3,266	4,088	-
Total	23,589,747	192,165	9,273	863,494	17,667	7,641	22,902,383


Small business loans	Loans			Provision			Total net
Category	Capital	Interest and/or financial component	Other items	Capital	Interest and/or financial component	Other items
In millions of COP
A – Normal risk	448,320	5,387	1,459	9,754	109	35	445,268
B – Acceptable risk	8,779	281	65	371	281	65	8,408
C – Appreciable risk	8,577	267	86	5,284	267	85	3,294
D – Significant risk	15,062	477	168	14,934	477	167	129
E – Unrecoverable risk	45,002	1,797	1,117	42,012	1,797	1,112	2,995
Total	525,740	8,209	2,895	72,355	2,931	1,464	460,094


Total loans	Loans			Provision			Total Net
Category	Capital	Interest and/or financial component	Other items	Capital	Interest and/or financial component	Other items
In millions of COP
A – Normal risk	163,515,245	2,048,748	2,187,674	3,011,507	42,285	38,620	164,659,255
B – Acceptable risk	3,726,258	79,835	56,665	302,927	17,395	4,721	3,537,715
C – Appreciable risk	3,285,020	164,604	26,350	668,983	156,466	20,984	2,629,541
D – Significant risk	4,306,773	151,953	65,309	3,059,573	151,953	64,629	1,247,880
E – Unrecoverable risk	6,369,364	212,235	65,296	5,827,778	212,229	64,765	542,123
Total	181,202,660	2,657,375	2,401,294	12,870,768	580,328	193,719	172,616,514

As of December 31, 2023


Commercial	Loans			Provision			Other items
Category	Capital	Interest and/or financial component	Other items	Capital	Interest and/or financial component	Other items
In millions of COP
A – Normal risk	87,655,242	1,502,565	16,158	1,232,376	24,530	578	87,916,481
B – Acceptable risk	1,300,166	74,543	1,854	197,071	8,079	392	1,171,021
C – Appreciable risk	631,082	12,217	1,564	156,946	9,861	1,385	476,671
D – Significant risk	1,779,007	43,394	11,537	1,223,780	43,394	11,523	555,241
E – Unrecoverable risk	2,550,668	28,750	6,075	2,142,931	28,750	5,931	407,881
Total	93,916,165	1,661,469	37,188	4,953,104	114,614	19,809	90,527,295


Consumer	Loans			Provision			Total net
Category	Capital	Interest and/or financial component	Other items	Capital	Interest and/or financial component	Other items
In millions of COP
A – Normal risk	32,413,615	517,717	64,264	1,372,121	21,829	3,139	31,598,507
B – Acceptable risk	1,062,168	35,307	5,318	127,120	11,640	2,299	961,734
C – Appreciable risk	898,748	29,112	5,546	193,193	22,939	4,826	712,448
D – Significant risk	1,511,693	52,257	11,365	1,448,226	52,257	11,350	63,482
E – Unrecoverable risk	2,173,238	64,509	17,656	2,108,782	64,509	17,496	64,616
Total	38,059,462	698,902	104,149	5,249,442	173,174	39,110	33,400,787


Leasing	Loans				Provision			Total net
Category	Capital	Interest and/or financial component	Other items		Capital	Interest and/or financial component	Other items
In millions of COP
A – Normal risk	21,592,066	175,325		2,404,759	435,169	3,829	37,879	23,695,273
B – Acceptable risk	538,105	7,852		12,592	25,701	565	907	531,376
C – Appreciable risk	328,825	4,816		16,995	27,587	3,234	12,688	307,127
D – Significant risk	430,928	35,678		55,351	224,699	35,664	42,956	218,638
E – Unrecoverable risk	346,214	73,062		33,631	326,783	72,005	33,320	20,799
Total	23,236,138	296,733		2,523,328	1,039,939	115,297	127,750	24,773,213


Mortgage	Loans			Provision			Total net
Category	Capital	Interest and/or financial component	Other items	Capital	Interest and/or financial component	Other items
In Millions of COP
A – Normal risk	20,535,984	200,004	2,549	421,655	2,073	26	20,314,783
B – Acceptable risk	424,654	4,934	654	34,213	4,934	654	390,441
C – Appreciable risk	210,292	921	866	110,781	921	866	99,511
D – Significant risk	249,828	2,383	1,076	188,885	2,383	1,076	60,943
E – Unrecoverable risk	198,883	3,279	3,951	198,883	3,279	3,951	-
Total	21,619,641	211,521	9,096	954,417	13,590	6,573	20,865,678


Small business loans	Loans			Provision			Total net
Category	Capital	Interest and/or financial component	Other items	Capital	Interest and/or financial component	Other items
In millions of COP
A – Normal risk	439,705	7,609	1,040	9,739	173	29	438,413
B – Acceptable risk	16,911	774	127	644	774	127	16,267
C – Appreciable risk	11,175	503	109	6,858	503	109	4,317
D – Significant risk	19,715	867	244	19,257	867	243	459
E – Unrecoverable risk	45,559	2,216	1,123	42,875	2,216	1,119	2,688
Total	533,065	11,969	2,643	79,373	4,533	1,627	462,144


Total loans	Loans			Provision			Total Net
Category	Capital	Interest and/or financial component	Other items	Capital	Interest and/or financial component	Other items
In millions of COP
A – Normal risk	162,636,612	2,403,220	2,488,770	3,471,060	52,434	41,651	163,963,457
B – Acceptable risk	3,342,004	123,410	20,545	384,749	25,992	4,379	3,070,839
C – Appreciable risk	2,080,122	47,569	25,080	495,365	37,458	19,874	1,600,074
D – Significant risk	3,991,171	134,579	79,573	3,104,847	134,565	67,148	898,763
E – Unrecoverable risk	5,314,562	171,816	62,436	4,820,254	170,759	61,817	495,984
Total	177,364,471	2,880,594	2,676,404	12,276,275	421,208	194,869	170,029,117

Provision for impairment of loan portfolio and leasing operations

The following table sets forth the changes in the allowance for loans and leasing operations losses as of September 30, 2024 and 2023:

Movement of the provision corresponding to nine months ended at September 30, 2024


Loans	Commercial	Consumer	Leasing	Mortgage	Small business loans	Total
In millions of COP
(+) Balance at December 31, 2023	5,087,527	5,461,726	1,282,986	974,580	85,533	12,892,352
(+) Charged-off-loan recovery	68,276	262,623	59,269	24,238	2,119	416,525
(+) Impairment of loan portfolio and leasing operations, net	1,091,469	3,214,503	136,051	(62,523)	50,077	4,429,577
(-) Period charges-off (1)	390,855	3,254,083	139,224	47,493	60,979	3,892,634


(-) Portfolio Sale	201,005	-	-	-	-	201,005
Balance at September 30, 2024	5,655,412	5,684,769	1,339,082	888,802	76,750	13,644,815

Movement of the provision corresponding to three months from July 1 to September 30, 2024


Loans	Commercial	Consumer	Leasing	Mortgage	Small business loans	Total
In millions of COP
(+) Balance at September 30, 2024	5,567,515	5,814,986	1,345,539	929,548	81,856	13,739,444
(+) Charged-off-loan recovery	13,624	123,325	23,150	6,072	951	167,122
(+) Impairment of loan portfolio and leasing operations, net	447,553	840,380	39,152	(31,588)	13,617	1,309,114
(-) Period charges-off (1)	172,275	1,093,922	68,759	15,230	19,674	1,369,860
(-) Sold portfolio provisions	201,005	-	-	-	-	201,005
Balance at September 30, 2024	5,655,412	5,684,769	1,339,082	888,802	76,750	13,644,815

Movement of the provision corresponding to nine months ended at September 30, 2023


Loans	Commercial	Consumer	Leasing	Mortgage	Small business loans	Total
In millions of COP
(+) Balance at December 31, 2022	5,034,160	4,069,098	1,278,586	813,264	73,476	11,268,584
(+) Charged-off-loan recovery	30,483	192,679	46,690	22,013	1,036	292,901
(+) Impairment of loan portfolio and leasing operations, net	1,006,986	3,553,598	104,227	124,497	54,461	4,843,769
(-) Period charges-off (1)	420,922	2,603,975	208,915	60,277	45,851	3,339,940
(-) Sold portfolio provisions	656,854	-	-	-	-	656,854
Balance at September 30, 2023	4,993,853	5,211,400	1,220,588	899,497	83,122	12,408,460

Movement of the provision corresponding to three months from July 1 to September 30, 2023


Loans	Commercial	Consumer	Leasing	Mortgage	Small business loans	Total
In millions of COP
(+) Balance at September 30, 2023	5,481,255	5,066,754	1,198,009	852,323	82,250	12,680,591
(+) Charged-off-loan recovery	13,536	96,186	13,922	6,751	1,059	131,454
(+) Impairment of loan portfolio and leasing operations, net	291,265	1,158,741	48,488	60,234	17,164	1,575,892
(-) Period charges-off (1)	135,349	1,110,281	39,831	19,811	17,351	1,322,623
(-) Sold portfolio provisions	656,854	-	-	-	-	656,854
Balance at September 30, 2023	4,993,853	5,211,400	1,220,588	899,497	83,122	12,408,460

(1)Charged-off-loans are still in recovery management.

NOTE 6. INVESTMENT IN SUBSIDIARIES

The detail of main investments in subsidiaries as of September 30, 2024 and December 31, 2023 is as below:


						September 30, 2024				December 31, 2023
In millions of COP
Company name		Main activity		Country		% of ownership		Investment value		% of ownership		Investment value
Banistmo S.A. (1)		Financial services		Panamá		100.00%		11,257,555		100.00%		9,920,304
Bancolombia Panamá S.A. (1)		Financial services		Panamá		100.00%		9,265,100		100.00%		8,838,482
FCP Inmobiliario Colombia S.A.		Real estate services		Colombia		80.43%		2,845,500		80.43%		2,733,074
Banca de Inversión Bancolombia S.A. Corporación Financiera		Financial services		Colombia		94.90%		1,255,853		94.90%		1,394,710
Bancolombia Puerto Rico Internacional Inc. (1)		Financial services		Puerto Rico		100.00%		674,809		100.00%		580,423
Fiduciaria Bancolombia S.A. Sociedad Fiduciaria	Financial trust services		Colombia		94.97%		435,723		94.97%		490,721
P.A. Sodimac (2)		Financial trust services		Colombia		100.00%		464,520		-		-
P.A. Mercurio (3)		Real estate services		Colombia		100.00%		287,196		100.00%		279,491
Valores Bancolombia S.A. Comisionista de Bolsa		Trade-broker dealer		Colombia		93.61%		228,645		93.61%		213,275
P.A. Nomad Central (4)		Real estate services		Colombia		98.00%		119,538		98.00%		101,260
P.A. Nomad Cabrera (5)		Real estate services		Colombia		98.00%		122,185		98.00%		99,109
P.A. Salitre (6)		Real estate services		Colombia		98.00%		83,281		98.00%		43,790
P.A. FAI Calle 77 (Nomad77) (7)		Real estate services		Colombia		98.00%		57,558		98.00%		57,306
P.A. Nomad Distrito Vera (8)		Real estate services		Colombia		98.00%		57,558		98.00%		57,306
Total investment in subsidiaries								27,097,463				24,751,945

(1)Increase in the carrying value of investments mainly due to the effect of foreign exchange differences.

(2)On May 6, 2024, the Bank transferred the rights for the acquisition of Sodimac for an amount of COP 451,000. A later appraisal provided a higher value of the property of COP 13,250 recorded in the investment account and in the profit and loss statement as a result of the purchase under advantageous conditions. The conditions agreed in the transaction were: cancellation of the commercial loan of COP 233,302 and the remaining balance of COP 217,697 will be paid in December 2024. As of September 2024, the equity method income recognized for this investment was COP 9,855.

(3)As of September 2024, Mercurio s hareholders' equity has an equity method income recognized for this investment of COP 13,585.

(4)As of September 2024, the Bank made a purchase of COP 30,870. The equity method loss recognized for this investment was COP (5,111).

(5)As of September 2024, the Bank made a purchase of COP 27,440. The equity method loss recognized for this investment was COP (2,619).

(6)As of September 2024, the Bank made a purchase of COP 41,650. The equity method loss recognized for this investment was COP (3,857).

(7)As of September 2024, the Bank made a purchase of COP 980 and restitution of contributions of COP (8). The equity method loss recognized for this investment was (517).

(8)On July 31, 2024 the Bank acquired the P.A. Nomad Distrito Vera for an amount of COP 31,409. As of September 2024, the equity method loss recognized for this investment was COP (201)

The following tables sets forth the changes of the Bank's subsidiary investments as of September 30, 2024 and December 31, 2023:


September 30, 2024
	Banistmo S.A.	Bancolombia Panamá S.A.	FCP Fondo Inmobiliario Colombia	Banca de Inversión Bancolombia S.A. Corporación Financiera	Bancolombia Puerto Rico Internacional Inc.	Fiduciaria Bancolombia S.A. Sociedad Fiduciaria	Valores Bancolombia S.A. Comisionista de Bolsa	Others	Total
In millions of COP
Initial balance	9,920,304	8,838,482	2,733,074	1,394,710	580,423	490,721	213,275	580,956	24,751,945


Equity method through income statement ((1)	213,195	1,028,225	141,060	(149,856)	62,540	129,025	26,717	11,135	1,462,041
OCI (Equity method) (2)	373,168	141,352	-	(2,542)	4,254	(5,025)	870	-	512,077
OCI (Translation adjustment) (2)	894,350	724,327	-	-	52,942	-	-	-	1,671,619
Purchase / capitalizations	-	-	-	-	-	-	-	596,869	596,869
Dividends	-	(1,093,114)	-	-	-	(130,301)	-	-	(1,223,415)
Restitution of contributions	-	-	-	-	-	-	-	(8)	(8)
Profit for previous years	(3,102)	-	-	434	-	430	-	-	(2,238)
Final balance	11,397,915	9,639,272	2,874,134	1,242,746	700,159	484,850	240,862	1,188,952	27,768,890

(1)See Note 16.5. Income from equity investments.

(2)Corresponds to OCI recognized as equity method and translation adjustment as of September 30, 2024. See Condensed Separate Interim Statement of Comprehensive Income.


December 31, 2023
	Banistmo S.A.	Bancolombia Panamá S.A.	FCP Fondo Inmobiliario Colombia	Banca de Inversión Bancolombia S.A. Corporación Financiera	Bancolombia Puerto Rico Internacional Inc.	Fiduciaria Bancolombia S.A. Sociedad Fiduciaria	Valores Bancolombia S.A. Comisionista de Bolsa	Others	Total
In millions of COP
Initial balance	12,640,048	11,221,104	2,493,826	1,744,834	636,656	449,696	200,611	331,922	29,718,697
Equity method through income statement.	485,132	1,431,958	239,248	(294,003)	84,465	132,456	13,878	(817)	2,092,317
OCI (Equity method)	81,970	240,162	-	22,718	11,362	2,192	1,564	-	359,968
OCI (Translation adjustment)	(2,991,741)	(2,648,131)	-	-	(152,060)	-	-	-	(5,791,932)
Purchase / capitalizations	-	-	-	-	-	-	-	250,655	250,655
Dividends	(285,530)	(1,406,611)	-	(54,427)	-	(91,467)	-	-	(1,838,035)
Restitution of contributions	-	-	-	-	-	-	-	(787)	(787)
Profit for previous years	(9,575)	-	-	(24,412)	-	(2,156)	(2,778)	(17)	(38,938)
Final balance	9,920,304	8,838,482	2,733,074	1,394,710	580,423	490,721	213,275	580,956	24,751,945

The following is the supplementary information of the Bank's most significant subsidiaries as of September 30, 2024 and December 31, 2023 without eliminations:

As of September 30, 2024


Company name	Assets	Liabilities	Income from ordinary activities	Gain / (Loss)
In millions of COP
Banistmo S.A.	43,166,168	38,088,193	3,210,842	213,195
Bancolombia Panamá S.A.	30,394,147	20,754,875	1,640,617	1,028,225
FCP Fondo Inmobiliario Colombia	5,727,974	1,942,584	675,662	175,392
Banca de Inversión Bancolombia S.A. Corporación Financiera	1,568,733	61,824	140,012	(158,854)

The financial statements as of September 30, 2024 have been used for the purpose of applying the equity method for the subsidiaries.

As of December 31, 2023


Company name	Assets	Liabilities	Income from ordinary activities	Gain / (Loss)
In millions of COP
Banistmo S.A.	40,740,495	36,315,750	4,551,651	485,132
Bancolombia Panamá S.A.	27,550,302	18,711,820	2,116,383	1,431,958


Company name	Assets	Liabilities	Income from ordinary activities	Gain / (Loss)
In millions of COP
FCP Fondo Inmobiliario Colombia	5,503,022	1,905,773	889,683	297,475
Banca de Inversión Bancolombia S.A. Corporación Financiera	1,719,824	52,784	150,732	(309,804)

The financial statements as of December 31, 2023 have been used for the purpose of applying the equity method for the subsidiaries.

As of September 30, 2024 and December 31, 2023 there are no restrictions or limitations on the ability of subsidiaries to transfer funds to the Bank in the form of dividends and other capital distributions.

Hedge of a net investment in a foreign operation

The Bank uses hedge accounting for net investments in foreign operations with non-derivative instruments and has designated USD 1,117,939 in debt securities issued as hedging instruments. The purpose of this operation is to protect the Bank from the exchange rate risk (USD/COP) of a portion of the net investment in Banistmo S.A., a company domiciled in Panama City and whose financial statements are denominated in USD. The book value and the hedged portion of the investment are listed below:


Banistmo S.A.	September 30, 2024	December 31, 2023
In thousands of USD
Investment portion covered in the hedging relationship (1)	1,117,939	1,592,034
Investment portion uncovered	1,609,944	1,004,000
Total investment in Banistmo S.A.	2,727,883	2,596,034

(1)The Bank discontinued the hedging relationship corresponding to correspondent credits in March 2024 for USD 200,000 and a portion that corresponds to bonds in June and July 2024, for USD 274,095. The accumulated effects of the exchange difference previously recognized are maintained in OCI.

The following is a detail of the hedging instruments of the net investment in the net foreign investment:

As of September 30, 2024


Debt securities issued in thousands of USD, designated as hedging instruments
Opening date	Due date	E.A. rate	Capital balance	Capital designated as hedging instrument
18/10/2017	18/10/2027	7.03%	461,707	355,339
18/12/2019	18/12/2029	4.68%	550,000	550,000
29/01/2020	29/01/2025	3.02%	212,600	212,600
Total debt securities			1,224,307	1,117,939

On March 21 and 26, 2024, Bancolombia S.A. prepaid the borrowings from correspondent banks with Barclays Bank PLC for USD 50,000 and Bank of America for USD 150,000 maturing in 2025.

On June 24 and July 8, 2024, Bancolombia S.A. prepaid the bonds maturing 2025 and 2027 for USD 557,727, of this amount, USD 274,095, were part of the hedging relationship of the net foreign investment, which has been decided to be discontinued in the same proportion.

As of December 31, 2023


Debt securities issued in thousands of USD, designated as hedging instruments
Opening date	Due date		E.A. rate		Capital balance	Capital designated as hedging instrument
18/10/2017	18/10/2027		7.03%		750,000	360,000
18/12/2019	18/12/2029		4.68%		550,000	550,000
29/01/2020	29/01/2025		3.02%		482,034	482,034
					1,782,034	1,392,034
Borrowings from international banks in thousands of U.S. dollars, designated as hedging instruments
31/03/2022		17/03/2025		6.06%	150,000	150,000
07/09/2022		05/09/2025		6.36%	50,000	50,000
					200,000	200,000
Total debt securities issued and loans with correspondent banks					1,982,034	1,592,034

For further information related to borrowings from international banks and debt securities issued, see Note 12. Borrowings from other financial institutions.

Measuring effectiveness and ineffectiveness

A hedge is considered effective if, at the beginning of the period and in subsequent periods, the changes in fair value or cash flows attributable to the hedged risk during the period for which the hedge has been designated are offset.

The Bank has documented the evidence of effectiveness of the hedge of the net foreign investment based on the portion of the net investment hedged at the beginning of the hedging relationship amounting to USD 1,117,939. The hedge is considered perfectly effective since the critical terms and risks of the obligations that serve as hedging instruments are identical to those of the primary hedged position. The effectiveness of the hedge is measured on a before taxes.

Gains or losses on translation of Banistmo's financial statements are recognized in OCI. Consequently, the exchange difference related to the translation of debt securities issued and borrowings from correspondent banks is recognized directly in OCI. The foreign currency translation adjustment corresponding to hedging instruments as of September 30, 2024 was COP (485,195) and as of September 30, 2023 was COP 1,579,943. See Condensed Separate Interim Statement of Comprehensive Income - Hedge of net investment in foreign operations.

NOTE 7. PREMISES AND EQUIPMENT, NET

As of September 30, 2024 and December 31, 2023, the premises and equipment, net consisted of the following:


Composition	September 30, 2024	December 31,2023
In millions of COP
Premises and equipment for own use	1,749,300	1,757,039
Premises and equipment in operating leases	3,102,692	3,689,017
Total premises and equipment, net	4,851,992	5,446,056

As of September 30, 2024


Premises and equipment for own use		Balance at January 1, 2024	Roll - forward					Balance at September 30, 2024
			Additions (1)	Expenses depreciation (2)	Expenses impairment (3)	Written off (4)	Movements (5)
	In millions of COP
Land
Cost		311,778	-	-	-		355	312,133
Construction in progress
Cost		7,690	4,180	-	-	-	-	11,870
Impairment		-	-	-	-	-	-	-
Buildings
Cost		1,102,332	5,574	-	-	(1,194)	(9,303)	1,097,409
Accumulated depreciation		(158,997)	-	(15,820)	-	(27)	843	(174,001)
Furniture and fixtures
Cost		366,790	16,258	-	-	(4,189)	-	378,859
Accumulated depreciation		(200,437)	-	(18,636)	-	3,654	-	(215,419)
Impairment		-	-	-	(26)	26	-	-
Computer equipment
Cost		661,417	70,539	-	-	(18,035)	-	713,921
Accumulated depreciation		(379,474)	-	(59,395)	-	17,489	-	(421,380)
Impairment		-	-	-	(221)	221	-	-
Vehicles
Cost		16,717	3,412	-	-	(1,699)	-	18,430
Accumulated depreciation		(9,276)	-	(2,372)	-	1,617	-	(10,031)
Machinery
Cost		91,761	675	-	-	(1,149)	-	91,287
Accumulated depreciation		(68,263)	-	(2,138)	-	1,106	-	(69,295)
Impairment		-	-	-	(16)	16	-	-
Leasehold improvements
Cost		15,001	16,060	-	-	(2,962)	(12,582)	15,517
Accumulated depreciation		-	-	-	-	-	-	-
Total cost		2,573,486	116,698	-	-	(29,228)	(21,530)	2,639,426
Total accumulated depreciation		(816,447)	-	(98,361)	-	23,839	843	(890,126)
Total accumulated impairment, net		-	-	-	(263)	263	-	-
Total premises and equipment for own use, net		1,757,039	116,698	(98,361)	(263)	(5,126)	(20,687)	1,749,300

(1)Fixtures and fittings, mainly: condensing unit for COP 4,453, handling unit for COP 2,485, electric plant for COP 2,196 and cashier positions COP 1,167. Computer equipment, mainly: ATMs for COP 30,718, laptops for COP 25,601 and CPUs for COP 6,023.

(2)See Note 17.3. Impairment depreciation and amortization.

(3)The impairments recorded correspond to the procedure defined in assets for obsolescence, losses, and others, which results in the derecognition of the asset.

(4)Computer equipment, mainly obsolescence of ATMs and laptops.

(5)Assets for right-of-use due to termination of improvements and activation of contracts; the main transfers correspond to: Local Mall Plaza Cali for COP 1,638, Parque Alegra branch for COP 1,516 and San Gil branch for COP 1,239. Land and buildings: 5 properties are transferred to the category of other non-productive assets, mainly Cosmocentro Cali with a cost of COP 6,946 and Cañaveral branch for COP 2,438.


Premises and equipment in operating leases	Balance at January 1, 2024	Roll - forward					Balance at September 30, 2024
		Additions (1)	Expenses depreciation (2)	Expenses impairment	Written off (3)	Movements (4)
In millions of COP
Furniture and fixtures
Cost	2,091	-	-	-	-	-	2,091
Accumulated depreciation	(614)	-	(190)	-	-	-	(804)
Vehicles
Cost	4,227,271	402,976	-	-	(84,472)	(859,444)	3,686,331
Accumulated depreciation	(672,254)	-	(270,775)	-	16,079	195,235	(731,715)
Computer equipment
Cost	228,161	62,527	-	-	(11,487)	(14,966)	264,235
Accumulated depreciation	(95,638)	-	(47,027)	-	9,819	15,400	(117,446)
Total cost	4,457,523	465,503	-	-	(95,959)	(874,410)	3,952,657
Total accumulated depreciation	(768,506)	-	(317,992)	-	25,898	210,635	(849,965)
Total premises and equipment in operating leases, net	3,689,017	465,503	(317,992)	-	(70,061)	(663,775)	3,102,692

Total premises and equipment - cost	7,031,009	582,201	-	-	(125,187)	(895,940)	6,592,083
Total premises and equipment - accumulated depreciation	(1,584,953)	-	(416,353)	-	49,737	211,478	(1,740,091)
Total premises and equipment -impairment	-	-	-	(263)	263	-	-
Total premises and equipment, net	5,446,056	582,201	(416,353)	(263)	(75,187)	(684,462)	4,851,992

(1)Purchase of vehicles to include in operating lease contracts mainly with Renting Colombia S.A.S.

Computer equipment to be activated under operating leases, mainly: Sonda de Colombia S.A. for COP 9,266, Apicom SAS for COP 5,576, Universidad del Magdalena for COP 5,418 and Green S&S Edge SAS for COP 4,601.

(2)See Note 17.3. Impairment depreciation and amortization.

(3)Mainly losses of vehicles with Renting Colombia S.A.S.

(4)Vehicles, corresponds mainly to transfers of assets that ended the lease contract and were reclassified to the inventories.

As of December 31, 2023


Premises and equipment for own use	Balance at January 1, 2023	Roll - forward					Balance at December 31, 2023
		Additions (1)	Expenses depreciation	Expenses impairment (2)	Written off (3)	Movements (4)
In millions of COP
Land
Cost	308,934	3,266	-	-	(422)	-	311,778
Construction in progress
Cost	2,114	5,576	-	-	-	-	7,690
Impairment	-	-	-	-	-	-	-
Buildings
Cost	1,102,310	19,079	-	-	(19,203)	146	1,102,332
Accumulated depreciation	(137,652)	-	(21,293)	-	(10)	(42)	(158,997)
Furniture and fixtures
Cost	343,946	29,519	-	-	(6,931)	256	366,790
Accumulated depreciation	(178,187)	-	(27,414)	-	5,420	(256)	(200,437)
Impairment	-	-	-	(305)	305	-	-
Computer equipment
Cost	652,224	64,355	-	-	(59,262)	4,100	661,417
Accumulated depreciation	(353,259)	-	(79,479)	-	57,364	(4,100)	(379,474)
Impairment	-	-	-	(1,147)	1,147	-	-
Vehicles
Cost	14,161	5,545	-	-	(2,989)	-	16,717
Accumulated depreciation	(9,395)	-	(2,629)	-	2,748	-	(9,276)
Machinery
Cost	95,113	2,000	-	-	(5,096)	(256)	91,761
Accumulated depreciation	(70,174)	-	(3,060)	-	4,715	256	(68,263)
Impairment	-	-	-	(304)	304	-	-
Leasehold improvements
Cost	7,487	26,950	-	-	-	(19,436)	15,001
Accumulated depreciation	-	-	-	-	-	-	-
Total cost	2,526,289	156,290	-	-	(93,903)	(15,190)	2,573,486
Total accumulated depreciation	(748,667)	-	(133,875)	-	70,237	(4,142)	(816,447)
Total accumulated impairment, net	-	-	-	(1,756)	1,756	-	-
Total premises and equipment for own use, net	1,777,622	156,290	(133,875)	(1,756)	(21,910)	(19,332)	1,757,039

(1)Buildings, mainly: Mercurio Plaza Branch for COP 7,781, Armenia Centro branch for COP 3,806 and Montería branch for COP 2,030.

Furniture and fixtures, mainly: Condensing unit for COP 6,668, Handling unit for COP 3,624 and Modular System for COP 2,695.

Computer equipment, mainly: Laptops for COP 23,143, ATMs for COP 22,945 and kiosks for COP 3,669.

(2)The impairments recorded correspond to the procedure defined in assets for obsolescence, losses, and others, which results in the derecognition of the asset.

(3)Buildings: Explained by the legalization of advances, mainly in branches.

Computer equipment, mainly due to obsolescence of ATMs.

(4)Right-of-use assets for completion of improvements and activation of contracts. The main transfers correspond to Unicentro Medellin Branch for COP 1,784, Central Mayorista branch for COP 1,604 and Pitalito branch for COP 1,591.

Premises and equipment in operating leases

Balance at

January 1,

2023

Roll - forward

Balance at December 31, 2023

Additions (1)

Expenses depreciation

Expenses impairment

Written off

Movements (2)

In millions of COP

Furniture and fixtures


Premises and equipment in operating leases	Balance at January 1, 2023	Roll - forward					Balance at December 31, 2023
		Additions (1)	Expenses depreciation	Expenses impairment	Written off	Movements (2)
In millions of COP
Cost	2,091	-	-	-	-	-	2,091
Accumulated depreciation	(360)	-	(254)	-	-	-	(614)
Vehicles
Cost	3,896,727	1,146,580	-	-	(67,686)	(748,350)	4,227,271
Accumulated depreciation	(478,042)	-	(350,362)	-	13,485	142,665	(672,254)
Computer equipment
Cost	150,969	66,833	-	-	(4,463)	14,822	228,161
Accumulated depreciation	(66,577)	-	(49,364)	-	3,855	16,448	(95,638)
Total cost	4,049,787	1,213,413	-	-	(72,149)	(733,528)	4,457,523
Total accumulated depreciation	(544,979)	-	(399,980)	-	17,340	159,113	(768,506)
Total premises and equipment in operating leases, net	3,504,808	1,213,413	(399,980)	-	(54,809)	(574,415)	3,689,017

Total premises and equipment - cost	6,576,076	1,369,703	-	-	(166,052)	(748,718)	7,031,009
Total premises and equipment - accumulated depreciation	(1,293,646)	-	(533,855)	-	87,577	154,971	(1,584,953)
Total premises and equipment -impairment	-	-	-	(1,756)	1,756	-	-
Total premises and equipment, net	5,282,430	1,369,703	(533,855)	(1,756)	(76,719)	(593,747)	5,446,056

(1)Purchase of vehicles to include in operating lease contracts mainly with Renting Colombia S.A.S.

(2)Vehicles, corresponds mainly to transfers of assets that ended the lease contract and were reclassified to the inventories.

Computer equipment corresponds to income as a result of transferring cost and depreciation from financial leasing for COP 36,866 and (2,618), reclassifications to inventories for COP (22,043) and COP 19,065.

As of September 30, 2024, there are contractual commitments for the acquisition of property and equipment for COP 25,175 mainly for assets related to branch, ATM and administrative headquarters projects. As of December 31, 2023, there are contractual commitments for the acquisition of properties and equipment for COP 4,025 mainly for the collaborative zone project of administrative headquarters in Cali and the construction of a facility in the Cañaveral Shopping Center.

As of September 30, 2024 and December 31, 2023, the Bank has no property and equipment with restricted title, nor guarantees of debts and contractual commitments for the fulfillment of obligations.

As of September 30, 2024 and December 31, 2023, the Bank's assessment indicates that there is no evidence of impairment of the Cash Generating Unit. Therefore, it is not

considered necessary to make a formal estimate of the recoverable amount for these assets.

As of September 30, 2024 and December 31, 2023, the value of the property and equipment that is fully depreciated and in use is COP 283,746 and COP 251,896 respectively and corresponds mainly to computer equipment, fixtures and accessories and machinery.

NOTE 8. INCOME TAX

The Income tax is recognized in accordance with current tax regulations.

8.1. Components recognized in the condensed interim separate Income statement

The following chart provides a detailed breakdown of the total income tax for the first nine months of 2024 and 2023, and a three-month period from July 1st to September 30th for the years 2024 and 2023:


			Accumulated		Quarterly
			2024	2023	2024	2023
	In millions of Colombian pesos
Current tax
Fiscal term		(971,645)		(831,042)	(357,486)	(435,623)
Tax validity of foreign branch		(688)		(1,112)	(36)	(415)
Prior fiscal terms (1)		146,180		-	-	-
Total current tax		(826,153)		(832,154)	(357,522)	(436,038)
Deferred tax
Fiscal term		(344,938)		(533,518)	(69,613)	(79,373)
Total deferred tax		(344,938)		(533,518)	(69,613)	(79,373)
Total income tax		(1,171,091)		(1,365,672)	(427,135)	(515,411)

(1) Mainly due to the effects of the EC Ruling 26739 of January 25, 2024 and for the payment of invoices received after the close of the year and industry and commerce tax, paid before the presentation of the income tax return.

8.2. Reconciliation of the effective tax rate

The detailed reconciliation between the total income tax expenses calculated at the current nominal tax rate and the recognized fiscal expense in the separate income statement for the nine months of 2024 and 2023, and for a three-month period from July 1st to September 30th of 2024 and 2023 is as follows:


Reconciliation of the tax rate		Accumulated		Quarterly
		2024	2023	2024	2023
	In millions of Colombian pesos
Accounting profit		5,646,448	6,095,973	2,020,590	2,006,750
Applicable tax with nominal rate		(2,258,579)	(2,438,389)	(808,236)	(802,700)
Non-deductible expenses to determine taxable profit (loss)		(131,154)	(155,779)	(17,741)	(42,627)
Accounting and non-tax (expense) income to determine taxable profit (loss) (1)		612,632	762,473	187,196	187,825


Reconciliation of the tax rate	Accumulated		Quarterly
	2024	2023	2024	2023
Fiscal and non-accounting (expense) income to determine taxable profit (loss)	(484,821)	(26,734)	14,039	53,782
Ordinary activities income exempt from taxation	738,041	265,039	87,382	76,278
Ordinary activities income not constituting income or occasional tax gain	52,450	61,117	165	-
Tax deductions	179,544	122,012	38,915	28,661
Tax depreciation surplus	160,572	163,257	53,745	59,232
Untaxed recoveries	(71,437)	(37,125)	(28,780)	(14,791)
Prior fiscal terms	146,180	-	-	-
Other effects of the tax rate by reconciliation between accounting profit and tax expense (income) (2)	(114,519)	(81,543)	46,180	(61,071)
Total income tax	(1,171,091)	(1,365,672)	(427,135)	(515,411)

(1) The variation is originated by the equity method

(2) The variation is generated by deferred tax.

8.3. Components recognized in the Condensed Interim Statement of Comprehensive Income Separate (OCI).


	September 30, 2024
	In millions of Colombian pesos
	Amounts before taxes	Deferred tax	Net taxes
Revaluation gain related to the defined benefit liability	15,014	(5,289)	9,725
Net profit on financial instruments measured at fair value.	1,104	(187)	917
Adjustments for foreign exchange difference in foreign subsidiaries	1,671,619	-	1,671,619
Unrealized gain/(loss) on investments in subsidiaries using equity method	512,077	-	512,077
Loss on valuation of investments in associates and joint ventures	(50)	-	(50)
Loss on hedging of net investment in foreign operations	(485,195)	190,709	(294,486)
Net	1,714,569	185,233	1,899,802


	September 30, 2023
	In millions of Colombian pesos
	Amounts before taxes	Amounts before taxes	Amounts before taxes
Remeasurement loss related to defined benefit liability	(22,434)	8,515	(13,919)
Net gain on financial instruments measured at fair value.	49,973	(17,852)	32,121


	September 30, 2023
	In millions of Colombian pesos
	Amounts before taxes	Amounts before taxes	Amounts before taxes
Adjustments for foreign exchange difference in foreign subsidiaries	(4,552,837)	-	(4,552,837)
Unrealized gain/(loss) on investments in subsidiaries using equity method	282,909	-	282,909
Net gain on valuation of investments in associates and joint ventures.	136	-	136
Gain on net investment hedge in foreign operations	1,579,943	(631,571)	948,372
Net	(2,662,310)	(640,908)	(3,303,218)


	July 1 to September 30, 2024
	In millions of Colombian pesos
	Amounts before taxes	Amounts before taxes	Amounts before taxes
Revaluation gain related to the defined benefit liability	-	93	93
Net income from financial instruments measured at fair value	43,621	(17,208)	26,413
Adjustments for foreign exchange difference in foreign subsidiaries	160,710	-	160,710
Unrealized gain/(loss) on investments in subsidiaries using equity method	12,328	-	12,328
Loss on valuation of investments in associates and joint ventures	64	-	64
Loss on hedging of net investment in foreign operations	(33,194)	12,554	(20,640)
Net	183,529	(4,561)	178,968


	July 1 to September 30, 2023
	In millions of Colombian pesos
	Amounts before taxes	Amounts before taxes	Amounts before taxes
Profit from revaluation related to the defined benefit liability	-	33	33
Net loss from financial instruments measured at fair value	(178)	(13)	(191)
Adjustments for exchange differences in foreign subsidiaries	(1,000,773)	-	(1,000,773)
Unrealized gain/(loss) on investments in subsidiaries using equity method	22,835	-	22,835
Loss in valuation of investments in associates and joint ventures	(189)	-	(189)
Gain on net investment hedge in foreign operations.	276,745	(127,689)	149,056
Net	(701,560)	(127,669)	(829,229)

8.4. Deferred tax

According to the financial projections, it is expected to generate enough liquid income to offset the items recorded as deductible deferred tax. These estimates start from the financial projections that were prepared considering information from the Bancolombia Group's economic research records, the expected economic environment for the next five years. The main indicators on which the models are based are GDP growth, loans growth and interest rates. In addition to these elements, the long-term Group's strategy is taken into account.


	December 31, 2023		Effect on Income Statement		Effect on OCI		Realized tax	September 30, 2024
	In millions of Colombian pesos
Asset Deferred Tax:
Employee Benefits	214,426	12,277		(5,289)		-		221,414
Deterioration assessment	253,299	(201,504)		-		-		51,795
Derivatives Valuation	230,192	(167,517)		-		-		62,675
Financial Obligations	-	58,673		-		-		58,673
Net investment coverage in operations abroad	528,436	(84,393)		190,709		(70,212)		564,540
Properties received in payment	86,530	37,375		-		-		123,905
Other deductions	115,167	(59,887)		-		-		55,280
implementation adjustment	90,895	-		-		-		90,895
Total Asset Deferred Tax	1,518,945	(404,976)		185,420		(70,212)		1,229,177
Liability Deferred Tax:
Property and equipment	(34,142)	(43,963)		-		-		(78,105)
Lease restatement	(414,969)	(48,630)		-		-		(463,599)
Valuation of equity instruments	(354,956)	27,121		(187)		-		(328,022)
Financial Obligations	(192,530)	192,530		-		-		-
Goodwill	(1,567,225)	-		-		-		(1,567,225)
Other deductions	(68,482)	(67,020)		-		-		(135,502)
Total Liability Deferred Tax	(2,632,304)	60,038		(187)		-		(2,572,453)
Net Deferred Tax	(1,113,359)	(344,938)		185,233		(70,212)		(1,343,276)

(1) Current tax arising from the exchange difference on payment of debt and liquidation of bonds that were associated as hedging instruments.

8.5. Amount of temporary differences in subsidiaries, branches, associates over which deferred tax was not recognized is:

In accordance with IAS 12, no deferred tax credit was recorded, because management can control the future moment in which such differences are reversed and this is not expected to occur in the foreseeable future.


	September 30, 2024	September 30, 2023
In millions of Colombian pesos
Temporary differences
Local Subsidiaries	(738,157)	(967,039)
Foreign Subsidiaries	(20,094,282)	(18,437,456)

8.6. Dividends

8.6.1 Dividend payment

Dividends to be distributed by the Bank will be subject to the application of section 48 and 49 of the Colombian Tax Code, and consequently, they will be subject to a withholding tax established by the norm. This is in accordance with the tax characteristics of each shareholder.

8.6.2 Dividends received from Colombian subsidiary companies

Considering the historical tax status of the dividends received by the Bank from its affiliates and national subsidiaries, it is expected that in the future dividends will be received on the basis of non-income tax. They will not be subject to withholding tax, taking into account that the Bank, its affiliates and national subsidiaries belong to the same business group.

8.7. Tax contingent liabilities and assets

In the determination of the effective current and deferred taxes subject to review by the tax authority, the relevant regulations have been applied in accordance with the interpretations made by the Bancolombia Group.

In Colombia, due to the complexity of the tax system, ongoing amendments to the tax regulations, accounting changes with implications on tax bases and in general the legal instability of the country, the tax administration's judgment may differ from that applied by Bancolombia at any time. Consequently, a dispute or inspection by the tax authority on a tax treatment may affect accounting of assets or liabilities for deferred or current taxes, in accordance with the requirements of IAS 12. However.

based on the criteria established in the interpretation of IFRIC 23, Bancolombia did not recognize uncertain tax positions in its financial statements.

NOTE 9. OTHER ASSETS, NET

As of September 30, 2024 and December 31, 2023 the Bank’s other assets, net consist of:


	September 30, 2024	December 31, 2023
In millions of COP
Balance in favorable income tax	2,445,312	1,184,129
Other accounts receivable (1)	1,073,491	776,813
Assets pledged as collateral (cash) (2)	495,063	1,010,562
Receivables related to abandoned accounts (3)	458,900	403,432
Prepaid expenses (4)	178,839	161,018
Accounts receivable from contracts with customers (5)	172,122	169,182
Marketable and non-marketable assets, net (6)	73,300	88,976
Operating leasing fee, net	51,661	66,614
Payments on customers account	32,340	31,861
Receivable Sales of goods and service	19,117	13,906
Other	384,403	304,817
Subtotal other assets	5,384,548	4,211,311
Impairment of accounts receivable	(90,181)	(47,113)
Impairment of assets from customer contracts	(29,389)	(23,681)
Impairment of other assets	(11,159)	(6,679)
Subtotal other assets impairment	(130,729)	(77,473)
Total other assets, net	5,253,819	4,133,838

(1)Other accounts receivable are mainly associated with outstanding items with networks, accounts receivable from derivatives and cash transactions, among others.

(2)Assets pledged as collateral decreased mainly in collateral deposits in foreign currency.

(3)Corresponds to the application of Law 1777 of February 1, 2016 where it is established that entities holding balances in savings or checking accounts that are considered abandoned, must transfer these resources to the special fund created and administered by Icetex for the granting of study credits and credits to promote the quality of higher education institutions.

(4)The detail of prepaid expenses is as follows:


	September 30, 2024	December 31, 2023
In millions of COP
License renewal (*)	129,449	129,663
Insurance	21,176	21,819
Contract advances	7,453	4,089
Other	20,761	5,447
Total	178,839	161,018

(*) Corresponds to expenses paid in advance for licenses and support of applications and updates thereof.

(5)Corresponds to accounts receivable from commissions, see Note 16.3.1. Income from commissions and other services, in the detail of accounts receivable and contract liabilities.

(6)The following is a detail of Marketable and non-marketable assets, net, for assent type.


	September 30, 2024	December 31, 2023
In millions of COP
Asset Type
Real estate different from residential properties	409,362	476,853
Trust	54,271	60,478
Real estate for residential purposes	49,370	45,291
Vehicles	5,575	3,702
Shares	373	373
Machinery, fixtures and fittings and others	70	117


Total	519,021	586,814
Impairment	(445,721)	(497,838)
Total marketable and non-marketable, net	73,300	88,976

NOTE 10. DEPOSITS BY CUSTOMERS

Details of customer deposits as of September 30, 2024 and December 31, 2023 are as follows:


	September 30, 2024	December 31, 2023
In millions of COP
Saving accounts	83,982,761	83,841,543
Time deposits(1)	65,051,433	61,106,144
Checking accounts	18,873,727	20,270,659
Other deposits	4,362,725	5,013,054
Total (2)	172,270,646	170,231,400

(1)Increase generated mainly in CDTs with terms between 6 and 12 months.

(2)As of September 30, 2024 and December 31, 2023, include deposits of Nequi for COP 3,197,752 and COP 2,924,906, respectively.

The following table details the time deposits issued by the Bank:


Time deposits	Effective interest rate		September 30, 2024
Modality	Minimum	Maximum	Carrying Value
Less than 6 months	0.10%	10.72%	17,372,771
Between 6 months and 12 months	4.80%	12.80%	16,161,018
Between 12 months and 18 months	5.00%	14.55%	7,849,082
Greater than 18 months	3.30%	18.17%	23,668,562
Total			65,051,433


Time deposits	Effective interest rate		December 31, 2023
Modality	Minimum	Maximum	Carrying Value
Less than 6 months	0.10%	15.52%	14,755,244
Between 6 months and 12 months	5.15%	16.89%	9,022,876
Between 12 months and 18 months	5.30%	20.56%	12,595,855
Greater than 18 months	1.85%	20.86%	24,732,169
Total			61,106,144

The detail of Time deposits issued by the Bank by maturity is as follows:


	September 30, 2024	December 31, 2023
In millions of COP
Less than 1 year	48,201,884	41,575,609
Between 1 and 3 years	5,689,728	7,404,119
Between 3 and 5 years	1,345,999	1,533,206
Greater than 5 years	9,813,822	10,593,210
Total	65,051,433	61,106,144

NOTE 11. REPURCHASE AGREEMENTS

The following table sets forth information regarding the money market operations recognized as liabilities in statement of financial position of September 30, 2024 and December 31, 2023:


	September 30, 2024	December 31, 2023
Repurchase agreements and other similar secured borrowing
Temporary transfer of securities (1)	1,964,989	-
Short selling operations	343,720	263,751
Total repurchase agreements (2)	2,308,709	263,751

(1) As of September, there were simultaneous liabilities in the portfolio, mainly with the Central Counterparty Clearing House .

(2)Total repo liabilities have maturities of less than 30 days.

Offsetting of Repurchase and Resale Agreements

For the Bank substantially all repurchase and resale activities are transacted under legally enforceable repurchase agreements that give the Bank, in the event of default by the counterparty, the right to liquidate securities held with the same counterparty.

The Bank does not offset repurchase and resale transactions with the same counterparty in the statement of financial position.

The table below presents repurchases and resale transactions included in the statement of financial position as of September 30, 2024 and December 31, 2023:


September 30, 2024
In millions of COP
	Assets / liabilities gross	Financial instruments as collaterals	Assets / liabilities net
Securities purchased under resale agreements(1)	1,103,214	(1,103,214)	-
Securities sold under repurchase agreements	(2,308,709)	2,308.709	-
Total repurchase and resale agreements	(1,205,495)	1,205,495	-


December 31, 2023
In millions of COP
	Assets / liabilities gross	Financial instruments as collaterals	Assets / liabilities net
Securities purchased under resale agreements(1)	7,792,496	(7,792,496)	-
Securities sold under repurchase agreements	(263,751)	263,751	-
Total repurchase and resale agreements	7,528,745	(7,528,745)	-

(1)See Note 3. Cash and cash equivalents.

NOTE 12. BORROWINGS FROM OTHER FINANCIAL INSTITUTIONS

As of September 30, 2024 and 31 December 2023, the composition of the borrowings from other financial institutions measured at amortized cost is the following:


	September 30, 2024	December 31, 2023
In millions of COP
Obligations granted by foreign banks(1)	5,870,651	6,555,231
Obligations granted by domestic banks(2)	4,216,320	5,445,038
Total	10,086,971	12,000,269

(1)Decrease presented by cancellation of obligations, mainly due to prepayments of loans with foreign banks with Barclays Bank PLC for USD 50 million and Bank of America for USD 150 million. See Note 6. Investments in Subsidiaries - Hedging of net investment in foreign subsidiaries.

(2)Decrease generated by prepayments of rediscount obligations mainly with Fondo para el Fomento del Sector Agropecuario (Finagro).

Obligations granted by foreign banks


Financial institution	Rate minimum	Rate maximum	September 30, 2024
In millions of COP
Financing with correspondent banks	5.93%	8.18%	5,870,651
Total			5,870,651


Financial institution	Rate minimum	Rate maximum	December 31, 2023
In millions of COP
Financing with correspondent banks (1)	1.21%	8.87%	6,555,231
Total			6,555,231

(1) USD 200,000 of the obligations with correspondent banks were designated as coverage of the net assets of a foreign bussiness. See Note 6. Investment in subsidiaries.

The contractual maturities of financial obligations with foreign entities are as follows:


	September 30, 2024	December 31, 2023
In millions of COP
Short term (less than 1 year)	2,021,780	1,742,300
Long term (greater than 1 year)	3,848,871	4,812,931
Total	5,870,651	6,555,231

Obligations granted by domestic banks


Financial institution		Rate minimum (1)	Rate maximum (1)	September 30, 2024
	In millions of COP
Financiera de Desarrollo Territorial (Findeter)		5.06%	18.07%	2,304,273
Fondo para el Financiamiento del Sector Agropecuario (Finagro)		5.49%	15.02%	1,312,330

Financial institution

Rate minimum (1)

Rate maximum (1)

September 30, 2024

In millions of COP

Banco de Comercio Exterior de Colombia (Bancoldex)

2.17%

18.72%

599,717

Total

4,216,320


Financial institution	Rate minimum (1)	Rate maximum (1)	December 31, 2023
In millions of COP
Financiera de Desarrollo Territorial (Findeter)	8.15%	20.85%	2,530,570
Fondo para el Financiamiento del Sector Agropecuario (Finagro)	8.37%	15.88%	1,509,595
Banco de Comercio Exterior de Colombia (Bancoldex)	2.17%	21.46%	1,404,873
Total			5,445,038

The maturities of financial obligations with domestic banks as of September 30, 2024 and December 2023, are as follows:


	September 30, 2024	December 31, 2023
In millions of COP
Short term (less than 1 year)	151,411	213,557
Long term (greater than 1 year)	4,064,909	5,231,481
Total	4,216,320	5,445,038

As of September 30, 2024 and December 2023, there were some financial covenants, mainly regarding capital adequacy ratios, past due loans and allowances. None of these covenants had been breached nor were the related obligations past due.

NOTE 13. OTHER LIABILITIES

The following is a detail of other liabilities as of September 30, 2024, and December 31, 2023:


	September 30, 2024	December 31, 2023
In millions of COP
Payables	3,297,935	4,126,706
Dividends (1)	1,714,926	863,629
Suppliers	1,583,982	1,437,329
Deferred income	548,622	532,668
Salaries and other labor obligations	468,070	315,038
Surplus to be applied	398,667	414,509
Collection services (2)	395,972	764,080
Deposits delivered as security (3)	280,986	787,640
Bonuses and short-term benefit	240,168	520,342
Advances in leasing operations	148,373	186,547
Provisions (5)	125,287	130,081
Credits for factoring operations	70,603	26,056


			September 30, 2024	December 31, 2023
In millions of COP
Withholdings and labor contributions			70,596	452,164
Liabilities from contracts with customers (4)			46,025	41,730
Others		23,063		20,563
Total	9,413,275			10,619,082

(1)It corresponds mainly to the accrual of dividends declared at the General Shareholder Meeting of March, 2024. See statement of changes in equity dividends distribution.

(2)Decrease is mainly due to collections made for governmental entities.

(3)Decrease due to lower guarantees on derivatives for financial counterparties.

(4)See Note 16.3.1. Income from commissions and other services, in the detail of accounts receivable and contract liabilities.

NOTE 14. PROVISIONS AND CONTINGENT LIABILITIES

Judicial proceedings

Details of provisions and contingent liabilities as of December 31, 2023 are included in the annual report of the 2023 separate financial statements, for the nine-months period ended at September 30, 2024, there is no relevant information on changes in provisions and contingent liabilities.

NOTE 15. APPROPRIATED RESERVES

As of September 30, 2024 and December 31, 2023 the reserves were as follows:


	September 30, 2024	December 31, 2023
In millions of COP
Appropriation of net income (1) (2)	14,208,572	14,208,314
Occasional reserve (3)	8,689,362	6,084,140
Total appropriated reserves	22,897,934	20,292,454

(1)In compliance with the article 452 of the Commercial Code of the Republic of Colombia, which establishes that corporations shall constitute a legal reserve amounting to at least fifty percent of the subscribed capital, formed with ten percent of the net profits of each fiscal year. The constitution of such reserve will be mandatory until it reaches fifty percent of the subscribed capital. The legal reserve fulfills two objectives: to increase and maintain the company's capital and to absorb economic losses. Based on this information, amount shall not be distributed in dividends to the stockholders.

(2)As of September 30, 2024 and December 31, 2023 includes reclassification of unclaimed dividends under the article 85 of the Bank's Bylaws for COP 381 and COP 557, respectively.

(3) On March 15, 2024 the Bank established a reserve for equity strengthening and future growth, which was approved at the General Shareholders' Meeting.

NOTE 16. OPERATING INCOME

Below is the information corresponding to operating income and expenses for the nine-month period ending at September 30, 2024 and 2023 and the three months from July 1 to September 30, 2024 and 2023:


16.1. Interest and valuation on financial instruments

The following table sets forth the detail of total interest income and valuation of investment securities for the period ended September 30, 2024 and 2023 and the three months ended as of July 1 through September 30, included in the net margin calculation:


Interest and valuation on financial instruments		Accumulated		Quarterly
		2024	2023	2024	2023
	In millions of COP
Interest on debt securities through OCI (1)		270,054	198,738	85,725	81,558
Debt securities held to maturity		217,746	224,158	68,020	78,822
Total interest on debt instruments measured by the effective interest method		487,800	422,896	153,745	160,380
Net income from activities measured at fair value through income statement
Debt securities (2)		768,832	45,371	409,856	(18,181)
Monetary market operations (3)		189,982	8,127	33,400	71,299
Derivatives		(94,144)	(74,161)	(83,859)	65,280
Cash operations		(18,847)	(52,148)	10,034	(14,992)
Total activities measured at fair value through income statement, net		845,823	(72,811)	369,431	103,406
Total interest and valuation of investments		1,333,623	350,085	523,176	263,786

(1)The increase in valuation is directly related to the growth of the debt securities portfolio.

(2)As of September 30, 2024, there is an increase in the portfolio of negotiable investments for COP 6,540,723, mainly in treasury securities - TES for COP 3,751,256.

(3)The variation is mainly represented in yields in simultaneous operations for COP 106,669 and in yields for transfer commitments in repo operations for COP 74,571.


16.2. Interest expenses

The following table sets forth the detail of interest on financial liability instruments for the period ended September 30, 2024 and 2023 and the three months ended as of July 1 to September 30:


Interest expenses	Accumulated			Quarterly
	2024	2023	2024			2023
In millions of COP
Deposits (1)	7,500,512	8,342,948	2,382,949		2,913,098
Debt securities issued (bonds) (2)	770,145	968,812	268,017		296,250
Financial obligations (3)	750,991	880,812	227,939		305,834
Lease liabilities	86,774	65,859	28,802		25,437
Preferred share	42,975	42,975	14,325		14,325
Interbank deposits purchased	2,784	15,969	1,704		1,976
Other interest	31,730	42,230	8,803		17,012
Interest expenses	9,185,911	10,359,605	2,932,539		3,573,932

(1) The intervention rate issued by Banco de Comercio Exterior de Colombia (Bancoldex) shows a decrease during 2024, which has an impact on interest rates and costs of funding operations.

(2) The decrease is mainly due to the maturity of these securities during 2024.

(3) The variation is mainly generated by the decrease in the balance of credits of foreign obligations.

Net interest income and valuation of financial instruments amounted to COP 11,135,125 and COP 11,265,478 as of September 30, 2024 and 2023 respectively, and includes interest accrued on loans, reverse repurchase agreements transactions and investments minus interest expense on customer deposits, debt securities issued, financial obligations and reverse repurchase agreements.


16.3. Fees and commissions


16.3.1. Income from fees and commissions

The Bank has selected to present the income from contracts with customers as an element in a line named “Fees and commissions income” in the consolidated statement of income separated from the other income sources.

The information contained in this section about the fees and commission’s income presents information on the nature, amount, timing and uncertainty of the income from ordinary activities which arise from a contract with a customer under the regulatory framework of IFRS 15 Revenue from Ordinary activities from Contracts with Customers.

In the following table, the description of the main activities through which the Bank generates revenue from contracts with customers is presented:


Fees and Commissions			Description
Debit and credit cards fees			In debit card product contracts, it is identified that the price assigned to the services promised by the Bank to the customers is fixed, given that no financing component exists, it is established based on the national and international interbank rate, additionally, the product charges to the customers commissions for handling fees, at a determined time and with a fixed rate. For credit cards, the commissions are the handling fees and depend on the card franchise. The commitment is satisfied in so far that the customer has available capacity on the card. Other revenue received by the (issuer) credit card product, is advance commission; this revenue is the charge generated each time the customer makes a national or international advance, at owned or non-owned ATMs, or through a physical branch. The exchange bank fee is a revenue for the Issuing Bank of the credit card for the services provided to the business for the transaction effected at the point of sale, the commission is accrued and collected immediately at the establishment and has a fixed amount. In the credit cards product, there is a customer loyalty program, in which points are awarded for each transaction made by the customer in a retail establishment. The program is administrated by a third party who assumes the inventory and claims risks, for which it acts as agent. The Bank recognized it as a lower value of the revenue from the exchange bank fee. The rights and obligations of each party in respect of the goods and services for transfer are clearly identified, the payment terms are explicit, and it is probable, that it takes into consideration the capacity of the customer and the intention of having to pay the consideration at termination to those entitled to change the transferred goods or services. The revenue is recognized at a point in time: the Bank satisfies the performance obligation when the “control” of the goods or services was transferred to the customers.
Bancassurance			The Bank receives a commission for collecting insurance premiums at a given time and for allowing the use of its network to sell insurance from different insurance companies over time. The Bank in these bancassurance contracts acts as agent (intermediary between the customer and the insurance company), since it is the insurance company which assumes the risks, and which handles the complaints and claims of the customers inherent in each insurance. Therefore, the insurance company acts as principal before the customer. The prices agreed in bancassurance are defined as a percentage on the value of the policy premiums. The payment shall be tied to the premiums collected, sold or taken for the case of employees’ insurance. What is aforementioned means that the price is variable, since the revenue will depend on the quantity of policies or calculations made by the insurance companies.
Payments			Service in which the Bank's customers can automatically perform whereby transactional channels, banking transactions for payroll payments, cancellation of invoices and credits, to beneficiaries of the Bank, as well as other financial entities affiliated to Automated Clearing House (ACH), the commitment is satisfied once the Bank performs the transaction. The rate stipulated for this commission is variable, the income is recognized at a given time and acts as principal.
Collections			The Bank acting as principal commits to collect outstanding invoices receivable by the collecting customers through the different channels offered by the bank, send the information of the collections made and credit the money to the savings or checking account defined by the collecting customer. The commitment is satisfied at a point in time to the extent that the money is collected by the different channels, the information of the said collections is delivered appropriately, and the resources are credited in real-time to the account agreed with the customer. For the service, the Bank receives a fixed payment, which is received for each transaction once the contract is into force.


Electronic services and ATMs			Revenue received from electronic services and ATMs arises through the provision of services so that the customers may make required transactions, and which are enabled by the Bank. These include online and real-time payments by the customers of the Bank holding a checking or savings accounts, with a debit or credit card for the products and services that the customer offers. Each transaction has a single price, for a single service. The provision of collection services or other different services provided by the Bank, through electronic equipment, generates consideration chargeable to the customer established contractually by the Bank as a fee. The Bank acts as principal and the revenue is recognized at a point in time.
Banking services			Banking services are related to commissions from the use of digital or physical channels once the customer makes a transaction. The performance obligation is fulfilled once the payment is delivered to its beneficiary and the proof of receipt of the payment is sent, in that moment, the collection of the commission charged to the customer is generated, which is a fixed amount. The commitment is satisfied during the entire validity of the contract with the customer. The Bank acts as principal.
Letters of credit			Banking service corresponding to a documentary credit in which the Bank acquires the commitment to guarantee the fulfillment of financial, commercial or service obligations to a supplier of the contracting party, called beneficiary, in import or export operations through a correspondent bank. The consideration in this type of contract may include fixed amounts, variable amounts, or both, and the Bank acts as principal.
Acceptances, guarantees and standby letters of credit			Bank service of acceptances guarantees and standby letters of credit that are not part of the Bank's portfolio. There are different performance obligations: the satisfaction of performance obligations occurs when the service is rendered to the customer. The consideration in these types of contracts may include fixed amounts, variable amounts, or both, and the Bank acts as principal. Revenue is recognized at a point in time.
Checks			Service through which the Bank offers its customers alternatives to avoid the risk of mobilizing cash, through the sale of domestic checks that can be exchanged in any place where the Bank has a presence. The consideration in this type of contract is fixed, the income is recognized at a determined time and acts as principal.
Deposits			Deposits are related to the services generated from the offices network of the Bank once a customer makes a transaction. The Bank generally commits to maintain active channels for the products that the customer has with the Bank, with the purpose of making payments and transfers, sending statements and making transactions in general. The commissions are deducted from the deposit account, and they are incurred at a point in time. The Bank acts as principal.
Gains on sale of assets			These are the revenue from the sale of assets where the sale value is higher than the book value recorded in the accounts, the difference representing the gains. The recognition of the revenue is at a point in time once the sale is realized. The Bank acts as principal in this type of transaction and the transaction price is determined by the market value of the asset being sold. For a detail of the balance see Note 16.4. Other operating income, net

The following table represents in detail and categorized by nature the fees and commissions for the nine-month periods ended at September 30, 2024 and 2023 and three-month periods from July 1 to September 30, 2024 and 2023:

Income from fees and commissions:


Income from fees and commissions	Accumulated		Quarterly
	2024	2023	2024	2023
In millions of COP
Debit and credit cards and affiliated establishments (1)	2,002,480	1,858,909	675,969		625,957
Bancassurance	658,550	656,242	196,125		225,292
Collections	393,493	367,169	137,459		127,596
Electronic services and ATMs (2)	371,429	299,819	137,916		103,682
Payment	369,428	332,262	125,647		110,171
Acceptances, guarantees and standby letters of credit and commissions for operations in foreign currencies	145,272	148,495	49,845		47,871
Banking services	124,875	130,537	44,559		43,775
Placements	42,930	41,807	13,992		13,950
Checks	15,045	15,211	5,019		5,058
Others	52,427	50,700	19,562		17,409
Total income from fees and commissions	4,175,929	3,901,151	1,406,093		1,320,761

(1)Increase generated by greater transactionality during 2024.

(2)Increase generated mainly in digital banking commission and virtual branch service commission.

For the determination of the transaction price, the Bank assigns to each one of the services the amount which represents the value expected to be received as consideration for each independent commitment, which is based on the relative price of independent sale. The price that the Bank determines for each performance obligation is done by defining the cost of each service, related tax and associated risks to the operation and inherent to the transaction plus the margin expected to be received in each one of the services, taking as reference the market prices and conditions, as well as the segmentation of the customer.

In the transactions evaluated in the contracts, changes in the price of the transaction are not identified.

Contract assets with customers

The Bank receives payments from customers based on the provision of the service, in accordance to that established in the contracts. When the Bank incurs in costs for providing the service prior to the invoicing, and if these are directly related with a contract, they improve the resources of the entity and are expected to recuperate, these costs correspond to a contract asset. As a practical measure, the Bank recognizes as an expense the incremental costs of obtaining a contract when the amortization period of the asset is equal to or less than one year.

Contract liabilities with customers

The contract liabilities constitute the obligation of the Bank to transfer the services to a customer, for which the Bank has received a payment on the part of the final customer or if the amount is due before the execution of the contract. They also include deferred

income related to services that shall be delivered or provided in the future, which will be invoiced to the customer in advance, but which are still not due.

The following table shows the detail of the balances of accounts receivable and liabilities from contracts with customers, as of September 30, 2024 and December 31, 2023:


	September 30, 2024	December 31, 2023
In millions of COP
Accounts receivable from contracts with clients (1)	172,122	169,182
Liabilities from contracts with clients (2)	46,025	41,730

(1)The impairment corresponding to accounts receivable from contracts with customers is COP 29,389 and COP 23,681 as of September 30, 2024 and December 31, 2023, respectively.

(2)See Note 13. Other liabilities.


16.3.2. Fees and Commissions Expenses



Fees and Commissions Expenses	Accumulated Quarterly
	2024		2023		2024			2023
In millions of COP
Banking services (1)	746,168		657,925		262,885			224,803
Sales, collections and other services	670,951		649,448		221,492			228,536
Correspondent banking (2)	446,230		337,754		151,224			128,232
ACH y PSE services	124,667		98,482		39,700			34,600
Placements	45,754		39,144		12,303			15,599
Payments and collections	32,337		31,489		12,190			11,221
Other (3)	105,535		70,861		40,081			31,238
Total expenses for fees and commissions	2,171,642		1,885,103		739,875			674,229
Total income for fees and commissions, net		2,004,287		2,016,048		666,218	646,532

(1)The increase is due to higher transactions generated during the year 2024.

(2)The increase is due to higher transactions and the opening of new banking correspondents during 2024.

(3)Increase generated mainly by commissions paid for transfers made to other banks and commissions on vehicle sales.


16.4. Other operating income, net

Other operating income, net, consists of the following items for the period ended as of September 30, 2024 and 2023 and the three months ended as of July 1 to September 30, 2024 and 2023:


Other operating income, net	Accumulated				Quarterly
		2024	2023	2024		2023
In millions of COP
Operating leases (1)		763,882	751,911	242,717		277,764


Other operating income, net	Accumulated				Quarterly
		2024	2023	2024		2023
In millions of COP
Exchange difference and foreign exchange derivatives, net (2)		349,081	967,163	204,122		262,074
Gain on sale of portfolio		110,591	243,362	110,591		243,362
Gain on sale of assets held for sale and inventories		104,265	100,343	35,817		37,418
Recoveries		43,965	24,141	13,625		11,051
Gain on sale of assets held for sale (leasing) (3)		18,762	82,901	6,643		24,033
Leases		17,241	11,944	6,092		5,369
Valuation of investment properties		4,302	-	-		-
Gain on sale of property and equipment		2,287	4,079	1,229		1,579
Penalties for noncompliance with leasing contracts		2,240	2,038	1,025		507
Gain on sale of assets - Financial leasing		1,804	3,396	759		1,022
Other		58,827	50,708	15,419		21,789
Total other operating income, net		1,477,247	2,241,986	638,039		885,968

(1)Increase generated by the activations of operating leasing contracts.

(2)The variation is impacted by the fluctuation of the dollar, during 2024 there was an increase in the TRM of COP 356.25, while for the accumulated to September 2023 there was a drop of COP (756.44), this variation is directly related to the Bank's own liability position.

(3)Variation that occurs mainly in vehicles, this decrease is due to the used vehicle market that has been lowering prices, since dealers are offering discounts to evacuate inventories of new vehicles.


16.5. Equity investment income

The following table shows the detail of equity investment income for the period ended as of September 30, 2024 and 2023 and the three months ended as of July 1 to September 30, 2024 and 2023:


Dividends and other net income for equity investments.	Accumulated		Quarterly
	2024	2023	2024		2023
In millions of COP
Equity method (1)	1,436,446	1,740,212	457,288	430,509
Equity instruments (2)	32,075	64,472	49	8,126
Dividends (3)	3,499	4,410	147	72
Investment impairment (4)	(121,788)	-	-	-
Total dividends and other net income for equity investments.	1,350,232	1,809,094	457,484	438,707

(1)The balance as of September 30,2024 includes the equity method of subsidiary investments for COP 1,462,041 and for associates and joint ventures for COP (25,594).

(2)As of September 30, 2024, income from the realization of residuals is recorded for COP 18,516, a gain is recognized for the bargain purchase of the investment P.A. Sodimac for COP 13,520 and a loss in valuation of fixed income investments for COP 39.

(3)Dividends received from equity instruments as of September 30, 2024 correspond to Central Counterparty Clearing House for COP 1,203, Asociación Gremial de Instituciones Financieras Credibanco S.A. for COP 1,193, Holding Bursátil Regional S.A. for COP 678, Banco Latinoamericano de Comercio Exterior S.A. for COP 285, Bladex for COP 285, Tecnibanca S.A. for COP 1,193 and Servibanca S.A. for COP 140.

(4)Corresponds to impairment of investments in joint ventures.

NOTE 17. OPERATING EXPENSES

The information corresponding to operating expenses for the nine-month periods ended as of September 30, 2024 and 2023 and the three-month periods from July 1 to September 30, 2024 and 2023:


17.1. Salaries and employee benefit

The detail of salaries and employee benefits for nine-month periods ended as of September 30, 2024, and 2023, and for the three-month periods from August 1 to September 30, 2024 and 2023 is as follows:


Salaries and employee benefit	Accumulated		Quarterly
	2024	2023	2024	2023
In millions of COP
Salaries (1)	1,109,436	981,248	367,966	331,410
Social security contributions	402,626	436,712	152,081	131,802
Private premium	367,232	318,821	115,080	99,641
Bonuses (2)	321,111	441,368	147,527	168,774
Indemnization payment	172,579	116,518	29,124	38,443
Defined benefit severance obligation and interest	121,144	99,916	39,847	33,276
Vacation expenses	72,469	72,596	27,519	26,038
Pension plan	8,171	8,961	2,581	2,756
Others (3)	182,761	148,158	60,772	47,755
Total salaries and employee benefit	2,757,529	2,624,298	942,497	879,895

(1)Corresponds mainly to salary increase for employees of the bylaws and employees who belong to the Collective Bargaining Agreement.

(2)Corresponds primarily to bonuses for Banco employees in accordance with Bancolombia Group’s variable compensation model.

(3)Includes benefits for staff, primarily allowances for insure policies.


17.2. Other administrative and general expenses

The retails of other administrative and general expenses for nine-month period ended as of September 30, 2024, and 2023 and for the three-month periods from July 1 to September 30, 2024 and 2023, is as follows:


Other administrative and general expenses	Accumulated		Quarterly
	2024	2023	2024	2023
In millions of COP
Fees	439,669	455,016	149,946	154,672
Insurance	387,005	368,118	132,617	127,016
Maintenance and repairs	308,750	291,545	105,383	97,090
Data processing	285,678	251,928	101,294	88,183
Frauds and scams (1)	262,679	209,198	112,862	88,906
Transport	147,679	135,385	45,656	46,438
Advertising	67,592	66,281	22,081	21,661


Other administrative and general expenses	Accumulated		Quarterly
	2024	2023	2024	2023
In millions of COP
Cleaning and surveillance services	58,300	53,837	19,455	16,976
Supplies and stationery (2)	58,023	23,696	13,687	9,742
Communications	56,791	57,322	19,729	18,690
Public Services	55,861	49,030	18,700	17,161
Contributions and affiliations	53,922	44,310	16,712	16,337
Adequacy and installation	37,197	36,758	14,862	14,889
Property management	28,380	25,012	9,648	8,135
Litigation, fines and installations	22,935	19,304	4,626	10,885
Warehousing services	13,527	12,584	4,904	4,253
Travel expenses	12,610	15,069	4,576	5,146
Tax fee inspection and External Audit	9,815	8,956	3,366	3,123
Transactional services	7,700	7,354	2,892	2,180
Temporary services	3,780	2,833	1,223	1,092
Legal expenses	3,415	3,053	943	1,407
Publications and subscriptions	2,875	2,809	876	798
Furniture and belongings of minor value	2,750	3,994	483	2,498
Redemption processing	2,212	2,151	508	796
Extract packaging	372	464	116	136
Public relations	298	344	99	158
Others	115,909	111,166	36,808	50,772
Total other administrative and general expenses	2,445,724	2,257,517	844,052	809,140
taxes (3)	929,465	907,446	285,264	342,881

(1)The Increase mainly generated by fraud in virtual channels.

(2)The Increase payments for services received from suppliers for this item.

(3)The accumulated increase as of September 30, 2024 is generated mainly in IVA taxes for COP 19,431.


17.3. Impairment, depreciation and amortization

Details of amortization, depreciation and impairment expense for the nine-month periods ended as of September 30, 2024, and for the three-month periods from July 1 to September 30, 2024 and 2023 is as follows:


Impairment, depreciation and amortization	Accumulated		Quarterly
	2024	2023	2024	2023
In millions of COP
Depreciation of premises and equipment (1)	416,353	383,336	133,626	141,131
Impairment of marketable assets, non- marketable assets, and other assets, net	132,105	126,700	42,818	42,014
Depreciation of right-of-use assets, on lease	97,212	101,094	33,275	32,569
Amortization of intangible assets	48,223	46,136	16,373	15,062
Impairment of premises and equipment	263	816	47	213
Impairment of right-of-use assets, on lease	196	260	196	-
Total impairment, depreciation and amortization	694,352	658,342	226,335	230,989

(1)Ver Note 7. Premises and equipment, net.

NOTE 18. RELATED PARTY TRANSACTIONS

The Bank offers banking and financial services to its related parties in order to meet their transactional needs for investment and liquidity in the ordinary course of business. These transactions are carried out in terms similar to those of transactions with third parties. In the case of treasury operations, the Bank operates between its own position and its related parties through transactional channels or systems established for this purpose and under the conditions established by current regulations.

Details of related party transactions as of December 31, 2023 are included in the annual report of the 2023 separate financial statements, for the nine months ended as of September 30, 2024, there were no related party transactions that materially affected the Bank's financial position or results of operations.

NOTE 19. LIABILITIES FROM FINANCING ACTIVITIES

The following table presents the reconciliation of the balances of liabilities from financing activities as of September 30, 2024:


	Balance as of January 1, 2024	Cash flows	Non-cash changes			Balance as of September 30, 2024
			Foreign currency translation adjustment	Interests accrued	Other movements
In millions of COP
Liabilities from financing activities
Borrowings from other financial institutions	10,958,823	(1,563,761)	637,170	628,994	141,150	10,802,376
Debt instruments in issue	12,000,269	(3,263,816)	599,530	750,991		10,086,974
Preferred shares	263,751	2,044,957	-	-		2,308,708
Interbank and repurchase agreements (1)	584,204	(57,701)	-	-	42,975	569,478
Total liabilities from financing activities	23,807,047	(2,840,321)	1,236,700	1,379,985	184,125	23,767,536

(1)The cash flow of COP 57,701 corresponds to the minimum dividends paid to preferred shareholders and is included in the statement of cash flows in the line "dividends paid", which includes the total dividends paid during the year to preferred and common shareholders.

NOTE 20. FAIR VALUE OF ASSETS AND LIABILITIES

The characteristics of the asset or liability are considered in determining fair value in the same manner as market participants would consider in pricing the asset or the liability at the measurement date.

Valuation process for fair value measurements

The valuation to fair value prices is performed using prices, methodologies and inputs provided by the official pricing services provider (Precia) to the Bank.

All methodologies and procedures developed by the pricing services provider are supervised by the SFC, which has its authorization.

The following table shows the carrying value and fair value of assets and liabilities as of September 30, 2024 and December 31, 2023:


	September 30, 2024		December 31, 2023
	Carrying value	Fair value	Carrying value	Fair value
In millions of COP
Assets
Debt securities negotiable investments and pledged financial assets (1)	14,606,304	14,606,304	6,942,468	6,942,468
Debt securities available for sale investments (1)	3,249,636	3,249,636	3,211,425	3,211,425
Debt securities held to maturity investments, net (1)	3,616,432	3,601,121	3,423,265	3,410,468
Equity instruments (1)	169,819	175,001	180,744	188,124
Derivative financial instruments (1)	2,455,124	2,455,124	6,215,942	6,215,942
Loans and leasing transactions (2) (3)	172,616,514	178,995463	170,029,117	171,005,705
Investment property	776,120	776,120	574,550	574,550
Total assets	197,489,949	203,858,769	190,577,511	191,548,682
Liabilities
Deposits by customers (4)	172,270,646	172,978,968	170,231,400	171,398,021
Repurchase agreements and other similar secured borrowing (5)	2,308,709	2,308,709	263,751	263,751
Derivative financial instruments (1)	2,528,670	2,528,670	6,699,521	6,699,521
Borrowings from other financial institutions (6)	10,086,971	10,086,971	12,000,269	12,000,269
Debt instruments in issue	10,802,377	11,101,574	10,958,823	10,919,613
Preferred shares	569,477	408,262	584,204	394,550
Total liabilities	198,566,850	199,413,154	200,737,968	201,675,725

(1)See Note 4.1 Financial assets investments, net.

(2)See Note 5. Loans and advances to customers, net.

(3)As of December 31, 2023, the fair value of the portfolio was undervalued by COP 333,672 due to the omission of a change in an input of observable market rates. The Management, after detecting the inexactitude, proceeded to perform the recalculation, finding that the difference with the previously disclosed value does not generate material impacts.

(4)See Note 10. Deposits by customers.

(5)See Note 11. Repurchase agreements.

(6)See Note 12. Borrowings from other financial institutions.

Fair value measurement

Assets and liabilities

a. Debt instruments

The Bank assigns prices to these debt investments using the prices provided by the official pricing service provider (Precia) and assigns the appropriate level according to the procedure described at the beginning of this note. For securities not traded or Over-the-Counter (OTC) such as certain bonds issued by other financial institutions, the Bank generally determines fair value utilizing internal valuation and standard techniques. These techniques include determination of expected future cash flows which are discounted using curves of the applicable currencies and the Colombian consumer price index (interest rate in this case), modified by the credit risk and liquidity risk. The interest rate is generally computed using observable market data and reference yield curves derived from quoted interest in appropriate time bandings, which matches the timings of the cash flows and maturities of the instruments.

b. Equity securities

The Bank performs the market price valuation of its investments in variable income using the prices provided by the official pricing services provider (Precia) and classifies those investments according to the procedure described at the beginning of this note. Likewise, in order to determine the fair value of unquoted equity securities, the Bank affects the value of the investment in the corresponding percentage of participation, to the subsequent variations of the respective issuer's equity. Holdings in mutual funds, trusts and collective portfolios are valued taking into account the value of the holding as calculated by the Management.

c. Derivative financial instruments

The Bank holds positions in standardized derivatives, such as futures over local stocks, and over the representative exchange rate. These instruments are evaluated according to the information provided by Precia, which perfectly matches the information provided by the Central Counterparty Clearing House – CCP.

Additionally, the Bank holds positions in OTC derivatives, which in the absence of prices, are valued using the inputs and methodologies provided by the pricing services provider, which have the no objection of the Superintendence of Finance of Colombia.

The key inputs depend upon the type of derivative and the nature of the underlying instrument and include interest rate yield curves, foreign exchange rates, the spot price of the underlying volatility, credit curves and correlation of such inputs.

d. Credit valuation adjustment

The Bank measures the effects of the credit risk of its counterparties and its own creditworthiness in determining fair value of the swap, option and forward derivatives.

Counterparty credit risk adjustments are applied to derivatives when the Bank's position is a derivative asset and the Bank’s credit risk is incorporated when the position is a derivative liability. The Bank attempts to mitigate credit risk to third parties which are international banks by entering into master netting agreements. The agreements allow to offset or bring net amounts that are liabilities, derivates from transactions carried out by the different agreements. Master netting agreements take different forms and may allow payments to be made under a variety of other master agreements or other negotiation agreements between the same parties, some may have a monthly basis and others only apply at the time the agreements are terminated.

When assessing the impact of credit exposure, only the net counterparty exposure is considered at risk, due to the offsetting of certain same-counterparty positions and the application of cash and other collateral.

The Bank generally calculates the asset's credit risk adjustment for derivatives transacted with international financial institutions by incorporating indicative credit related pricing that is generally observable in the market (Credit Default Swaps, “CDS”). The credit risk

adjustment for derivatives transacted with non-public counterparties is calculated by incorporating unobservable credit data derived from internal credit qualifications to the financial institutions and corporate companies located in Colombia. The Bank also considers its own creditworthiness when determining the fair value of an instrument, including OTC derivative instruments if the Bank believes market participants would take that into account when transacting the respective instrument.

The approach to measuring the impact of the Bank's credit risk on an instrument transacted with international financial institutions is done using the asset swap curve calculated for subordinated bonds issued by the Bank in foreign currency.

For derivatives transacted with local financial institutions, the Bank calculates the credit risk adjustment by incorporating credit risk data provided by rating agencies and released in the Colombian financial market.

e. Impaired loans measured at fair value

The Bank measured certain impaired loans based on the fair value of the associated collateral less costs to sell. The fair values were determined as follows using external and internal valuation techniques or third-party experts, depending on the type of underlying asset.

For vehicles under leasing arrangements, the Bank uses an internal valuation model based on price curves for each type of vehicle. Such curves show the expected price of the vehicle at different points in time based on the initial price and projection of economic variables such as inflation, devaluation and customs. The prices modelled in the curves are compared every six months with market information for the same or similar vehicles and in the case of significant deviation the curve is adjusted to reflect the market conditions.

Other vehicles are measured using matrix pricing from a third party. This matrix is used by most of the market participants and is updated monthly. The matrix is developed from values provided by several price providers for identical or similar vehicles and considers brand, characteristics of the vehicles, and manufacturing date among other variables to determine the prices.

For real estate assets, a third-party qualified appraiser is used. The methodologies vary depending on the date of the last appraisal available for the property (the appraisal is estimated based on either of three approaches: cost, sales comparison and income approach, and is required every three years). When the property has been valued in the last 12 months and the market conditions have not shown significant changes, the most recent valuation is considered the fair value of the property.

For all other cases (for example, appraisals older than 12 months) the value of the property is updated by adjusting the value in the last appraisal for weighted factors such as location, type and characteristics of the property, size, structural conditions and the expected sales prices, among others. The factors are determined based on current market information gathered from several external real estate specialists.

f. Assets held for sale measured at fair value less cost of sale

The Bank measures certain impaired foreclosed assets and premises and equipment held for sale based on fair value less costs to sell. The fair values were determined using external and internal valuation techniques, depending on the type of underlying asset. Those assets are comprised mainly of real estate properties for which the appraisal is conducted by experts considering factors such as the location, type and characteristics of the property, size, physical conditions and expected selling costs, among others. Likewise, in some cases the fair value is estimated considering comparable prices or promises of sale and offering prices from auctions process.

g. Mortgage backed securities ("TIPS") and Asset-Backed securities

The Bank invests in asset-backed securities for which underlying assets are mortgages and earnings under contracts issued by financial institutions and corporations, respectively. The Bank does not have a significant exposure to sub-prime securities. The asset-backed securities are denominated in local market TIPS and are classified as fair value through profit or loss. These asset-backed securities have different maturities and are generally classified by credit ratings.

TIPS are part of the Bank portfolio and its fair value is measured with published price by the official pricing services provider. These securities are leveled by margin and are assigned level 2 or 3 based on the Precia information.

Residual TIPS have their fair value measured using the discounted flow method, considering the amortization tables of the Titularizadora Colombiana, the betas in COP and UVR of Precia (used to construct the curves) and the margins; when they are residual TIPS of subordinated issues, a liquidity premium is applied. These securities are assigned level 3.

h. Investment property

The Bank's investment property is valued by external experts, who use valuation techniques based on comparable prices, direct capitalization, discounted cash flows and replacement costs.

Fair value hierarchy

IFRS 13 establishes a fair value hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable, that reflects the significance of inputs adopted in the measurement process. In accordance with IFRS the financial instruments are classified as follows:

Level 1: Observable inputs that reflect quoted prices (unadjusted) in active markets for identical assets or liabilities. An active market is a market in which transactions for the asset or liability being measured take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. Level 2 generally includes: (i) quoted prices for similar assets or liabilities in active markets; (ii) quoted prices for identical or similar assets or liabilities in markets that are not active, that is, markets in which there are few transactions for the asset or liability.

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

This category generally includes certain retained residual interests in securitizations, asset-backed securities (ABS) and highly structured or long-term derivative contracts where independent pricing information was not able to be obtained for a significant portion of the underlying assets.

Assets and liabilities measured at fair value on a recurring basis

The following table presents assets and liabilities by fair value hierarchy that are measured on a recurring basis at September 30, 2024 and December 31, 2023:


ASSETS
Type of instrument	September 30, 2024				December 31, 2023
	Fair value hierarchy			Total fair value	Fair value hierarchy			Total fair value
	Level 1	Level 2	Level 3		Level 1	Level 2	Level 3
In millions of COP
Investment securities
Negotiable and pledged financial assets
Treasury securities issued by the Colombian Government - TES	7,003,943	2,284,483	-	9,288,426	4,089,072	324,985	-	4,414,057
Mortgage-backed securities (TIPS)	-	46,508	65,529	112,037	-	10,214	74,087	84,301
Bonds	4,591,149	221,939	25,237	4,838,325	1,757,573	230,566	14,284	2,002,423
Other financial investment assets	-	362,349	5,167	367,516	-	441,687	-	441,687
Total negotiable securities and pledged financial assets	11,595,092	2,915,279	95,933	14,606,304	5,846,645	1,007,452	88,371	6,942,468
Available for sale
Solidarity Securities issued by the Colombian Government (TDS)	-	-	2,604,495	2,604,495	-	-	2,664,295	2,664,295
Bonds	-	51,857	91,749	143,606	-	-	-	-
Other public debt	-	501,535	-	501,535	-	547,130	-	547,130
Total available for sale	-	553,392	2,696,244	3,249,636	-	547,130	2,664,295	3,211,425
Total debt securities	11,595,092	3,468,671	2,792,177	17,855,940	5,846,645	1,554,582	2,752,666	10,153,893
Equity instruments
Equity instruments at fair value	9,589	19,965	129,841	159,395	29,719	2,701	140,815	173,235
Total equity instruments	9,589	19,965	129,841	159,395	29,719	2,701	140,815	173,235
Forward
Exchange rate	-	483,427	531,196	1,014,623	-	3,307,711	1,069,966	4,377,677
Securities	-	1,875	7,584.00	9,459	-	151	2,863	3,014
Total forward	-	485,302	538,780	1,024,082	-	3,307,862	1,072,829	4,380,691
Swaps
Exchange rate	-	806,864	330,151	1,137,015	-	1,066,916	237,422	1,304,338
Interest rate	97,743	71,537	36,143	205,423	130,792	173,912	15,621	320,325


Total swaps		97,743		878,401		366,294	1,342,438		130,792	1,240,828	253,043	1,624,663
Options
Exchange rate		125		45,098		43,381	88,604		7	136,978	73,603	210,588
Total options		125		45,098		43,381	88,604		7	136,978	73,603	210,588
Total derivative financial instruments		97,868		1,408,801		948,455	2,455,124		130,799	4,685,668	1,399,475	6,215,942
Investment property
Buildings		-		-		776,120	776,120		-	-	574,550	574,550
Total investment properties		-		-		776,120	776,120		-	-	574,550	574,550
Total		11,702,549		4,897,437		4,646,593	21,246,579		6,007,163	6,242,951	4,867,506	17,117,620
LIABILITIES
Type of instrument	September 30, 2023								December 31, 2023
	Fair value hierarchy							Total fair value	Fair value hierarchy			Total fair value
	Level 1		Level 2		Level 3				Level 1	Level 2	Level 3
In millions of COP
Financial liabilities
Forward
Exchange rate	-		762,979		181,021			944,000	-	4,454,755	67,825	4,522,580
Securities	-		4,593		558			5,151	-	8,629	1,852	10,481
Total forward	-		767,572		181,579			949,151	-	4,463,384	69,677	4,533,061
Swaps
Exchange rate	-		1,021,145		210,745			1,231,890	-	1,388,113	102,973	1,491,086
Interest rate	95,111		148,485		13,814			257,410	126,728	304,981	11,078	442,787
Total swaps	95,111		1,169,630		224,559			1,489,300	126,728	1,693,094	114,051	1,933,873
Options
Exchange rate	53		90,166		-			90,219	19	232,568	-	232,587
Total options	53		90,166		-			90,219	19	232,568	-	232,587
Total derivative financial instruments	95,164		2,027,368		406,138			2,528,670	126,747	6,389,046	183,728	6,699,521
Total financial liabilities	95,164		2,027,368		406,138			2,528,670	126,747	6,389,046	183,728	6,699,521

Fair value of assets and liabilities that are not measured at fair value in the statement of financial position

The following table presents for each level of the fair value hierarchy the Bank's assets and liabilities that are not measured at fair value in the statement of financial position, however, the fair value as of September 30, 2024 and December 31, 2023 is disclosed:


ASSETS
Type of instrument	September 30, 2024				December 31, 2023
	Fair value hierarchy			Total fair value	Fair value hierarchy			Total fair value
	Level 1	Level 2	Level 3		Nivel 1	Nivel 2	Nivel 3
In millions of COP
Investments to maturity
Agricultural Development Securities issued by the Colombian Government (TDA)	-	-	3,296,340	3,296,340	-	-	3,075,873	3,075,873
Mortgage-backed securities (TIPs)	-	-	-	-	-	-	-	-
Other financial investment instruments	-	47,780	257,001	304,781	-	279,483	55,112	334,595
Total held to maturity investments	-	47,780	3,553,341	3,601,121	-	279,483	3,130,985	3,410,468
Equity securities	-	-	15,606	15,606	-	-	14,889	14,889
Loan portfolio and leasing operations, net Total	-	-	178,995,463	178,995,463	-	-	171,005,705	171,005,705
Total	-	47,780	182,564,410	182,612,190	-	279,483	174,151,579	174,431,062


LIABILITIES
Type of instrument	September 30, 2024				December 31, 2023
	Fair value hierarchy			Total fair value	Fair value hierarchy			Total fair value
	Level 1	Level 2	Level 3		Level 1	Level 2	Level 3
In millions of COP
Deposits by customers	-	62,737,336	110,241,632	172,978,968	-	60,274,969	111,123,052	171,398,021
Repurchase agreements and other similar secured borrowing	-	-	2,308,709	2,308,709	-	-	263,751	263,751
Borrowings from other financial institutions	-	-	10,086,971	10,086,971	-	-	12,000,269	12,000,269
Debt instruments in issue	8,873,221	983,461	1,244,891	11,101,573	6,629,731	2,583,290	1,706,592	10,919,613
Preferred shares	-	-	408,262	408,262	-	-	394,550	394,550
Total	8,873,221	63,720,797	124,290,465	196,884,483	6,629,731	62,858,259	125,488,214	194,976,204

IFRS requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized in the statement of financial position, for which it is practicable to estimate fair value. Certain categories of assets and liabilities, however, are not eligible for fair value accounting.

The financial instruments below are not measured at fair value on a recurring and nonrecurring basis:

Short-term financial instruments

Short-term financial instruments are valued at their carrying amounts included in the consolidated statement of financial position, which are reasonable estimates of fair value due to the relatively short period to maturity of the instruments. This approach was used for cash and cash equivalents, accrued interest receivable, customers’acceptances, accounts receivable, accounts payable, accrued interest payable and bank acceptances outstanding.

Deposits from customers

The fair value of time deposits was estimated based on the discounted value of cash flows using the appropriate discount rate for the applicable maturity. Fair value of deposits with no contractual maturities represents the amount payable on demand as of the statement of financial position date.

Interbank deposits and repurchase agreements and other similar secured borrowings

Short-term interbank borrowings and repurchase agreements have been valued at their carrying amounts because of their relatively short-term nature. Long-term and domestic development bank borrowings have also been valued at their carrying amount because they bear interest at variable rates.

Borrowings from other financial institutions

The fair value of borrowings from other financial institutions were determined using discounted cash flow models. The cash flows projection of capital and interest was made according to the contractual terms, considering capital amortization and interest bearing. Subsequently, the cash flows were discounted using reference curves formed by the weighted average of the Bank’s deposit rates.

Debt instruments in issue

The fair value of debt instruments in issue, comprised of bonds issued by Bancolombia S.A. and its subsidiaries, was estimated substantially based on quoted market prices. The fair value of certain bonds which do not have a public trading market, were determined based on the discounted value of cash flows using the rates currently offered for bonds of similar remaining maturities and the Bank’s creditworthiness.

Preferred shares

In the valuation of the liability component of preferred shares related to the minimum dividend of 1% of the subscription price, the Bank uses the Gordon Model to price the obligation, considering its own credit risk, which is measured using the market spread based on observable inputs such as quoted prices of sovereign debt. The Gordon Model is commonly used to determine the intrinsic value of a stock based on a future series of dividends that are estimated by the Bank and growth at a constant rate considering the Bank’s own perspectives of the payout ratio.

Loans and advances to customers

Estimating the fair value of loans and advances to customers is considered an area of considerable uncertainty as there is no observable market. The loan portfolio is stratified into tranches and loans segments such as commercial, consumer, small business loans, mortgage and leasing. The fair value of loans and advances to customers and financial institutions is determined using a discounted cash flow methodology, considering each credit’s principal and interest projected cash flows to the prepayment date. The projected cash flows are discounted using reference curves according to the type of loan and its maturity date.

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:


	September 30, 2024				December 31, 2023
	Fair value hierarchy			Total fair value	Fair value hierarchy			Total fair value
	Level 1	Level 2	Level 1		Level 1	Level 2	Level 3
	In millions of COP
Real estate different from residential properties	-	-	2,133	2,133	-	-	3,142	3,142
Real estate for residential purposes	-	-	166	166	-	-	3,188	3,188
Movable property	-	-	5,389	5,389	-	-	7,182	7,182
Total	-		7,688	7,688	-	-	13,512	13,512

Changes in level 3 fair-value category

The table below presents reconciliation for assets and liabilities measured at fair value, on a recurring basis using significant unobservable inputs as of September 30, 2024 and December 31, 2023:

As of September 30, 2024


	Balance, January 1, 2024	Included in earnings	OCI	Purchases	Settlement	Prepaids	Reclassifications (1)	Transfers in to level 3	Transfers in to level 3	Balance September 30, 2024
In millions of COP
Assets
Debt securities
Investments negotiable
Mortgage backed securities (TIPs)	74,087	15	-	-	(6,668)	-	-	3,662	(5,567)	65,529
Bonds	14,284	1,063	-	8,007	-	-	-	1,883	-	25,237
Other financial investment assets	-	-	-	-	-	-	-	5,167	-	5,167
Total negotiable investments	88,371	1,078	-	8,007	(6,668)	-	-	10,712	(5,567)	95,933
Available for sale investments
Solidarity Securities issued by the Colombian Government (TDS)	2,664,295	-	-	-	-	-	-	2,604,495	(2,664,295)	2,604,495
Bonds	-	-	-	91,749	-	-	-	-	-	91,749
Total available for sale investments	2,664,295	-	-	91,749	-	-	-	2,604,495	(2,664,295)	2,696,244
Total debt securities	2,752,666	1,078	-	99,756	(6,668)	-	-	2,615,207	(2,669,861)	2,792,177
Derivative financial instruments
Exchange rate	1,380,991	(43,478)	-	463,991	(1,157,696)	-	(10,100)	349,943	(78,923)	904,728
Interest rate	15,621	2,983	-	5,915	(2,852)	-	(230)	19,648	(4,942)	36,143
Securities	2,863	-	-	7,584	(2,863)	-	-	-	-	7,584
Total derivative financial instruments	1,399,475	(40,495)	-	477,490	(1,163,411)	-	(10,330)	369,591	(83,865)	948,455
Equity investments at fair value	140,815	-	7,544	-	-	(18,516)	-	-	(2)	129,841
Investment property	574,550	4,301	-	197,269	-	-	-	-	-	776,120
Total assets	4,867,506	(35,116)	7,544	774,515	(1,170,079)	(18,516)	(10,330)	2,984,798	(2,753,729)	4,646,593
Liabilities
Derivative financial instruments
Exchange rate	170,798	20,980	-	140,139	(86,706)	-	(10,100)	235,600	(78,945)	391,766
Interest rate	11,078	7	-	23	(4,514)	-	(230)	13,608	(6,158)	13,814
Securities	1,852	-	-	558	(1,852)	-	-	-	-	558
Total derivative financial instruments	183,728	20,987	-	140,720	(93,072)	-	(10,330)	249,208	(85,103)	406,138
Total assets	183,728	20,987	-	140,720	(93,072)	-	(10,330)	249,208	(85,103)	406,138

As of December 31, 2023


	Balance, January 1, 2023	Included in earnings	OCI	Purchases	Settlement	Prepaids	Reclassifications (1)	Transfers in to level 3	Transfers in to level 3	Balance December 31, 2023
In millions of COP
Assets
Debt securities
Investments negotiable
Mortgage backed securities (TIPs)	2,928	(5,534)	-	848	(2,343)	-	77,773	415		74,087
Bonds	-	-	-	-	-	-	-	14,284	-	14,284
Total negotiable investments	2,928	(5,534)	-	848	(2,343)	-	77,773	14,699	-	88,371
Available for- sale investments	-	-	-	-	-	-	-	-	-
Solidarity Securities issued by the Colombian Government (TDS)	-	-	-	-	-	-	-	2,664,295	-	2,664,295
total available for sale investments	-	-	-	-	-	-	-	2,664,295	-	2,664,295
Total debt securities	2,928	(5,534)	-	848	(2,343)	-	77,773	2,678,994	-	2,752,666
Derivative financial instruments
Exchange rate	1,158,532	(60,699)	-	1,291,408	(804,780)	-	(13,559)	46,459	(236,370)	1,380,991
Interest rate	29,170	(10,693)	-	6,957	(4,593)	-	(39)	525	(5,706)	15,621
Securities	105	-	-	2,863	(105)	-	-	-	-	2,863
Total derivative financial instruments	1,187,807	(71,392)	-	1,301,228	(809,478)	-	(13,598)	46,984	(242,076)	1,399,475
Equity securities at fair value	148,169	-	20,055	-	(18,453)	(8,956)	-	-	-	140,815
Investment property	449,253	27,818	-	97,479	-	-	-	-	-	574,550
Total assets	1,788,157	(49,108)	20,055	1,399,555	(830,274)	(8,956)	64,175	2,725,978	(242,076)	4,867,506
Liabilities
Derivatives
Exchange rate	348,027	15,345	-	164,179	(329,858)	-	(13,559)	4,330	(17,666)	170,798
Interest rate	51,662	(6,296)	-	3,629	(41,002)	-	(39)	3,734	(610)	11,078
Securities	-	-	-	1,852	-	-	-	-	-	1,852
Total derivatives	399,689	9,049	-	169,660	(370,860)	-	(13,598)	8,064	(18,276)	183,728
Total assets	399,689	9,049	-	169,660	(370,860)	-	(13,598)	8,064	(18,276)	183,728

Level 3 fair value – transfers

The following were the significant level 3 transfers as of September 30, 2024:

Transfers between Level 1 and Level 2 to Level 3:

As of September 2024, there were transfers of COP 2,615,207 of Mortgage Securities - TIPS and Bonds to level 3. For December 2023, there were no transfers from level 1 and 2 to level 3. As of December 2023, there were transfers of COP 2,678,994 of Mortgage Securities - TIPS and Bonds to level 3. The securities do not mark to price, the margin is updated, and the marking days are greater than 365, therefore their current level is 3.

Transfers of COP 120,383 and COP 38,920 were made as of September 30, 2024 and December 31, 2023, respectively of the exchange rate and interest rate derivative contracts to level 3.

Transfers between Level 3 and Level 1 and 2:

Transfers for COP (2,669,862) from level 3 to level 2 in 2024 In December 2023, these securities were not price marked and their margin was not registered by the Price Provider (Precia), therefore their level was 3. However, as of September 2024 they registered historical margin provided by the Price Provider (Precia), therefore the current level is 2.

Transfer of COP 1,238 and COP (223,800) as of September 30, 2024 and December 31, 2023, respectively of the exchange rate and interest rate derivative contracts from Level 3 to Level 2, mainly related to a transfer of the counterparty's credit risk to the Company's own credit risk.

Transfers between Level 2 and Level 1 of the Fair Value hierarchy

As of September 30, 2024 and December 31, 2023, the Bank transferred securities from level 1 to level 2 for COP 55,896 and 13,619, respectively, as these securities increased their liquidity and were traded more frequently in an active market.

All transfers are assumed to have occurred at the end of the reporting period.

Quantitative Information about Level 3 Fair Value measurements

The fair value of financial instruments is, in certain circumstances, measured using valuation techniques that incorporate assumptions that are not evidenced by prices from observable market transactions in the same instrument and are not based on observable market data.

Changing one or more of the inputs to the valuation models to reasonably possible alternative assumptions would change the fair values and therefore a valuation adjustment would be recognized through income statement. Favorable and unfavorable changes are determined based on changes in the value of the instrument because of varying the levels of the unobservable input.

The following table sets forth information about 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 September 30, 2024

Financial instrument

Fair Value

Valuation

technique

Significant

unobservable input

Range of

inputs

Weighted

average

Sensitivity

100

basis point

increase

Sensitivity

100

basis point

decrease

Securities issued by other financial institutions

TIPS

65,529

Discounted cash flow

Margin (1)

0% a 10.66%

3.37%

65,350

69,688

Amortization table (2)

68,883

Amortization table (2)

64,339

Solidarity Securities issued by the Colombian Government (TDS)

2,604,495

Discounted cash flow

Margin (1)

1.18%% a 1.18%

1.18%

2,589,035

2,622,623

Bonds

116,986

Discounted cash flow

Margin (1)

1.32% a 1.32%

1.32%

5,165

5,168

Other financial investment assets

5,167

Discounted cash flow

Margin (1)

0.04% a 5.25%

2.53%

115,465

121,870

Equity securities

129,841

Price-based

Price

Derivative financial instruments, net

Options

43,381

Discounted cash flow

Counterparties COP (USD) (4)

0.12% a 34.68%

0.70%

43,053

43,564

Forward

357,201

Discounted cash flow

Counterparties COP (USD) (4)

0% a 41.65%

6.07%

356,313

358,098

Swaps

141,735

Discounted cash flow

Counterparties COP (USD) (4)

0% a 56.88%

3.47%

138,665

145,306

As of December 31, 2023

Financial instrument

Fair Value

Valuation

technique

Significant

unobservable input

Range of

inputs

Weighted

average

Sensitivity

100

basis point

increase

Sensitivity

100

basis point

decrease

Securities issued by other financial institutions

TIPS

74,087

Discounted cash flow

Margin (1)

2.06% a 10.73%

5.48%

70,982

75,852

Amortization table (2)

152,224

Solidarity Securities issued by the Colombian Government (TDS)

2,664,295

Discounted cash flow

Margin (1)

0% a 1.18%

1.17%

2,658,010

2,679,372

Bunuses

14,283

Discounted cash flow

Margin (1)

3.49% a 3.49%

3.49%

13,700

14,912

Equity securities

140,815

Price-based

Price

Financial instrument

Fair Value

Valuation

technique

Significant

unobservable input

Range of

inputs

Weighted

average

Sensitivity

100

basis point

increase

Sensitivity

100

basis point

decrease

Derivative financial instruments, net

Options

73,603

Discounted cash flow

Counterparties COP (USD) (4)

0.13 % a 33.77%

0.57%

73,048

73,870

Forward

1,003,152

Discounted cash flow

Counterparties COP (USD) (4)

0% a 50.58%

7.22%

1,000,729

1,005,592

Swaps

138,992

Discounted cash flow

Counterparties COP (USD) (4)

0% a 63.39%

5.86%

139,451

138,577

(1)Margin: The margin reflects the risks not incorporated in the reference rate, such as the credit risk, and is that value which, compounded with the reference rate, results in the discount rate with which the price of the security in the operation is obtained.

(2)Amortization table (Applies to TIPS): It is based on the cash flows generated monthly by the Colombian Securitization Company, which incorporate, among other assumptions, the default and prepayment indicators, which correspond to inputs that are not observable in the market but are developed under statistical techniques and based on the history of mortgage loans in Colombia.

(3)Liquidity effect: Corresponds to the difference in nominal monthly maturity terms of the face rate of the subordinated issue with respect to the most liquid face rate of the same issue.

(4)Recovery rate and counterparties COP (USD): These refer to the recovery rates and the probabilities of default of the counterparties, which are used in the estimation of the CVA/DVA adjustment in the measurement of the fair value of the OTC derivative instruments.

The following table presents the valuation techniques used in measuring the fair value of the Bank's investment properties, the most significant unobservable inputs, and the respective sensitivity:


Methodology	Valuation technique	Significant unobservable input	Description of sensitivity
Sales Comparison Approach - SCA The process by which an indication of value is obtained for the properties under analysis by comparing them with similar properties that can be considered comparable to those under analysis, that have been recently sold (ideally) or that are on offer, identifying the appropriate units of comparison and making the necessary adjustments to make them comparable to those under appraisal, based on market-derived comparable.	Comparable Prices	The weighted average rates used in the income capitalization methodology for the second quarter of 2024 are: Direct capitalization: initial rate 8.19% Discounted cash flow: discount rate: 12.49%, terminal rate: 8.31%. The same weighted rates for the third quarter of 2024 are: Direct capitalization: initial rate 8.14% Discounted cash flow: discount rate: 12.35%, terminal rate: 8.28%. The ratio between monthly gross rent and the value of the properties managed directly by the FIC (rental rate) considering the differences in locations and individual factors between properties and on a weighted basis was 0.80% at the end of the second quarter of 2024 and 0.88% at the end of the third quarter of 2024.	An increase (Light, normal, considerable, significant) in the capitalization rate used would generate a decrease (significant, considerable, normal, light) in the fair value of the asset, and vice versa. An increase (Light, normal, considerable, significant) in the leases used in the valuation would generate a (significant, light, considerable) increase in the fair value of the asset, and vice versa.
Income Approach In this methodology the appraiser analyzes the capacity of a property to generate future benefits, which are brought to present value as an indication of value.	Direct Capitalization Discounted Cash Flows
Cost approach A set of procedures by which an indication of the Market Value of the Full Property Right is obtained by estimating the cost of constructing, reproducing or replacing the property being appraised, including a reasonable profit, deducting depreciation from the total cost and adding the value of the land separately.	Replacement cost

There has been no change to the valuation technique during the year 2024 for each asset.

NOTE 21. SUBSEQUENT EVENTS

The financial statements of Bancolombia S.A. for the period ended as of September 30, 2024 were approved by Chief Executive Financial for publication on November 08, 2024.

On October 24, 2024, the Bank announced the redemption of bonds maturing in 2025. On November 13, 2024, the total redemption of the 3.000% Senior Bonds maturing in 2025, issued by Bancolombia S.A. (the "2025 Bonds"), was carried out. The Bank carried out the redemption under the make-whole mechanism (Mechanism, included in the 2025 Bonds

prospectus, which allows for the total redemption of the 2025 Bonds) equivalent to the greater value between (i) the Treasury index (U.S. Treasury securities at 5 years) plus 25 basis points accrued and unpaid until the Redemption Date of the 2025 Bonds and (ii) 100% of the principal of the 2025 Bonds plus the accrued and unpaid interest until the Redemption Date of the 2025 Bonds.

These bonds were designated as hedging instruments for the net exposure of the investment in Banistmo, so the total redemption transaction results in a discontinuation of the hedge amounting to USD 212,600.

On October 29, 2024, Bancolombia S.A. ("Bancolombia") announced that its Board of Directors authorized its management to proceed with the steps to modify the corporate structure of Bancolombia and its subsidiaries ("Grupo Bancolombia") by creating a parent company to be called Grupo Cibest S.A. ("Grupo Cibest"), and the completion of a series of corporate operations to achieve this end (the "Changes in the Corporate Structure"). The authorization of the Board of Directors includes carrying out all necessary acts to perfect the Changes in the Corporate Structure, including, but not limited to, those acts aimed at convening the Extraordinary Shareholders' Meeting once the relevant regulatory authorizations are obtained.

RISK MANAGEMENT

So far in 2024, the economy has shown positive results in terms of economic growth, accompanied by a gradual convergence in inflation. In Colombia, economic progress has exceeded expectations, with inflation declining slowly. This trend has prompted the Bank of the Republic to implement a series of measured interest rate cuts. However, geopolitical conflicts, the global electoral super cycle, and local sociopolitical uncertainty have introduced increased volatility to assets throughout 2024.

Credit risk – credit portfolio and financial leasing operations

Credit risk is the probability that the entity will incur losses due to i) non-compliance with the financial obligations taken by the counterparty, issuer or debtor, ii) deterioration due to the decrease in their risk rating, iii) the reduction of profits and remunerations and iv) the benefits delivered in restructuring and recovery costs.

The information included below presents the maximum exposure to credit risk as of September 30, 2024 and December 2023:


In millions of COP	September 30, 2024	December 31, 2023
Credit portfolio and financial leasing operations	186,261,329	182,921,469
Debt securities	21,472,372	13,577,158
Equity investments (1)	169,819	180,744
Derivatives (2)	628,292	1,791,164
Subtotal maximum credit risk exposure	208,531,812	198,470,535
Financial guarantees	8,408,338	8,570,464
Total maximum credit risk exposure	216,940,150	207,040,999

(1) For equity investments, the book value to be disclosed corresponds to the Other financial instruments.

(2) For derivative transactions, counterparty risk is revealed as long as the valuation is positive. Therefore, the value described here differs from the book value.

The maximum exposure to credit risk of the financial leasing portfolio and operations corresponds to its carrying amount at the end of the period without considering any guarantee received or other credit improvements.

The maximum exposure to credit risk of financial guarantees corresponds to the total balance granted at the end of the period, which is why it does not reflect the expected results.

The maximum exposure to credit risk of derivatives corresponds to the market value (mark to market) at the end of the period without considering any guarantee received or other credit improvements.

The maximum exposure to credit risk of debt securities and equity investments corresponds to their book amount at the end of the period without considering any guarantee received or other credit improvements.

a.Credit Risk Management – loan portfolio and Leasing operations

Risk management in the cycles of the different types of credit operations, it develops by complying with the policies, procedures and methodologies stipulated in the Credit Risk Management System, which also contains the general criteria for evaluating, qualifying, assuming, controlling and covering the mentioned risk. In addition, the administration has developed process and method manuals that specify the policies and procedures for the different products and segments served by the entity, and realize the strategy approved by the Board of Directors for the monitoring and control of credit risk.

The policies for credit risk management are those stipulated for the credit exposure limit, credit origination, guarantees and securities, provisions, and portfolio monitoring and collections. Below is a brief description of the mentioned policies:

●Credit Exposure Limit Policy: contains the guidelines regarding the establishment of credit exposure limits and levels. Is set in compliance with legal requirements and in accordance with the entity's internal guidelines.

●Credit origination Policy: with this policy, the broad and sufficient knowledge of the characteristics of potential clients, the proper selection of these and the optimal granting levels consistent with their capacities is sought.

●Guarantees Policy: this policy specifies the guarantees provided by the clients to the entity, the characteristics, and criteria to accept and evaluate them to mitigate the risk associated with the non-compliance of the agreed upon obligations.

●Provisions Policy: this policy underlines the compliance of legal guidelines, what is stipulated by the Bank and the analysis of clients regarding the actions which must be taken, to cover the risk of losses due to credit exposure.

●Monitoring Policy*: It contains all the following activities that the bank use to monitoring the customer with their information, the purpose of this is review the correct

evolution of credit risk. These activities require a specific classification process of credits operations and are consistent with the policies implemented for new credits.

* Follow-up: Knowledge of the client's situation during the life of the credit.

●Portfolio recovery policy**: through the definition of this policy, the Bank's objective is to establish those mechanisms that allow it to anticipate possible delays and carry out the recovery of the portfolio, that is, to minimize the impacts that result from late or non-compliance with payments, Additionally, this policy define all the activities and aspects that the bank has been considered as customer reconciliation management to make it possible to obtain information and create with this some models to make the necessary estimates for monitoring and estimating losses.

**Recovery: Collection management during the different stages of the same.

The Bank's credit risk management is carried out in all processes of the credit cycle, these processes are framed as follows:

●Credit origination: customer knowledge, payment capacity analysis, sectoral analysis, payment behavior and credit structuring.

●Behavior: knowledge of the client's situation during the credit life.

●Recovery: collection during the different stages.

Scoring and rating models based on statistical information or expert criteria are used to support credit origination processes. This allows a differentiation of the risk level of potential clients to support decision making.

The Vice Presidency of Risks defines and documents the characteristics of the models that are used in the process of credit origination. Also, defines parameters, variables and the cut-off points that applied in each model. At least every six months, the Vice Presidency of Risks must do the backtesting of the scoring and rating models, used in the credit origination process to validate their effectiveness. Additionally, monthly the entire credit portfolio must be rated with the reference models and days past due, in order to assess the credit risk of each debtor and the allocation of bank provisions.

In addition to the evaluation and qualification of the portfolio, monthly provisions serve as a measure of the current condition of the portfolio, the parameters for their calculation are found in chapter 2 of Circular 100 of 1995 of the Superintendence of Finance of Colombia, where define two matrices (A and B) for assigning the probability of default of the commercial and retail portfolio, a calculation that is made taking into account the rating, and in the commercial portfolio, the value of the client's assets, and in that of consumption, the historical behavior of the client's payments. For the remaining modalities, the portfolio is classified by risk level and then the provision percentage is calculated according to the days past due.

In order to guarantee compliance with the regulations established with respect to individual credit and concentration limits, the Bank carries out continuous monitoring of the

concentration of risk groups, as well as daily control of the exposures of the different risk groups, evaluating the legal limits of indebtedness.

Additionally, there are internal concentration limits for the following classifications:

●Concentration analysis by country: the country risk for a client will be the one where the economic activity of the client take place to generate the resources to pay the credit obligation.

●Sector concentration analysis: carried out through the economic sector defined by the international ISIC code

●Concentration analysis by modality: refers to the portfolio modality of each agreement (commercial, retail, microcredit and mortgage credit).

The Bank has models based on the optimization of risk and profitability, to determine the different levels of concentration of portfolios, also based on international references determined with external risk rating agencies that allow the analysis of concentration levels in different geographies.

Risk Country

This risk refers to the possibility of an entity incurring losses as a result of financial operations abroad due to adverse economic and/or political conditions in the country receiving those operations, either because of restrictions on the transfer of foreign exchange or because of factors not attributable to the commercial and financial condition of the country receiving those operations. This definition includes, but is not limited to, sovereign risk (SR) and transfer risk (TR) associated with such factors.

The guidelines, policies and methodologies for country risks management are maintained in accordance with what was revealed as of December 31, 2023.

At the end of September 2024 compared to December 2023, no alerts were presented changes in the country ratings in any investment, nor were adjustments made for deterioration. The variation in the value of investments is mainly attributed to variation in the exchange rate, results of the period of foreign subsidiaries and distribution of dividends at the end of March 2024.

b.Credit Quality Analysis - loans and Financial Leases portfolio

Credit risk rating system

Its main goal is to determine the client’s credit risk profile, which is given by the result of a rating.

The institutional or legal entities portfolio rating is performed through a Rating model, based on the analysis of quantitative and qualitative variables, which could affect the payment of the financial commitments acquired by a client. This model is performed in the early stage of the credit process, it is updated every six months and includes credit risk variables, which could be summarized in the customer's financial performance measured

from financial figures and payment capacity, payment behavior with the Bank and with other entities, and qualitative variables that are not explicit in the financial statements.

For the retail portfolio there is a rating model based on a score, which contains the last 12 months behavior variables, such as overdue, product counts, changes in the initial credit conditions, among others, gathering all this information the rating model gives a score, which will be categorized by a credit risk level, to identify the level of risk associated with the client.

For the Bank, the following credit risk levels have been determined to group customers according to their payment behavior:


Risk Level			Description
A – Normal Risk			Loans and financial lease operations that have an excellent payment behavior. The debtor's financial statements and cash flows forecast, as well as other available financial information, it allows inferring an adequate payment capacity.


B - Acceptable Risk			Loans and financial lease transactions, even though they have an acceptable payment behavior, present some weakness that could potentially temporarily or permanently affect the debtor's ability to pay.


C - Appreciable Risk			Loans and financial lease operations that present deficiencies in the debtor's payment capacity or in its cash flow forecast, which could affect the normal payment of the obligation.


D – Significant Risk			Loans and financial lease transactions that have the same deficiencies than category "C", for a longer period, therefore its payment probability is low.


E – Uncollectible			Loans and financial lease obligations in this category are considered uncollectible.

The Bank’s loan and financial lease portfolio distribution by the end of the period, according to the credit risk levels mentioned above, is shown below:


	September 30, 2024		December 31, 2023
In millions of COP
Risk Level	In Millions of COP	Amount %	In Millions of COP	Amount %
A – Normal Risk	167,751,667	90%	167,528,602	92%
B – Acceptable Risk	3,862,758	2%	3,485,959	2%
C – Appreciable Risk	3,475,974	2%	2,152,771	1%
D – Significant Risk	4,524,035	2%	4,205,323	2%
E – Uncollectible	6,646,895	4%	5,548,814	3%
Total	186,261,329	100%	182,921,469	100%

Additional provisions

External Circular (EC) 026 of 2022

Based on what is described in the EC 026 of November 29, 2022, and with the purpose of mitigating the impact of credit risk in an environment of economic deceleration and persistent inflation, the Bank recognized an additional provision to consumer loans in the income statement for a value equivalent to the expense explained by macroeconomic variables and the possible use of contingent lines of credit, based on the internal ECL models.

As of December 2023, the value amounts to COP 353,159. For the year 2024, this provision was used, taking it to zero in the month of June, taking into account the effect of the lower bearing, leveraged by a better portfolio quality for the consumption modality, which allows the release of the general provision established for this portfolio.

For the period September 30, 2024, there were no changes in the basis on which the significant estimates and judgments made by Management have been determined when applying the Bank's accounting policies, compared to those applied in the separate financial statements for December 31, 2023.

Relevant topics regulatory provisions

For the housing modality, an adjustment is made to the provision parameters, leaving them at the regulatory minimums for ratings C and D, which generated a decrease in this item by COP 100,276 for the period of July 31, 2024, which follows applying as of September 30, 2024. This release allows us to continue with adequate coverage levels of the portfolio, which continue to be superior to the financial system, with parameters equal to or greater than the regulatory minimums required by the SFC.

Portfolio monitoring

•Retail and SME Banking:

At the end of September 2024, the total balance of Banca Negocios Personas, Pyme y Empresas recorded a 0.5% decrease compared to December 2023. Although disbursements have shown better dynamics so far in 2024, with a growth of 10.6%, amortization levels have increased, as a result of a longer average loan life than in previous years.

As for the non-performing loan portfolio, it was stable with respect to December 2023, with an NPL ratio of 7.5%, 10 bp above the NPL of December 2023; explained primarily by the macroeconomic situation faced by small businesses in the country. The segment that has been most affected is that of small enterprises, given that the non-performing loans have increased while that of the personal loan portfolio has decreased in the last quarter. We continue to provide comprehensive support to clients in all segments in order to anticipate the risks that may materialize.

•Corporate banking:

By the end of the third quarter of 2024, the Corporate Business has continued its trend in portfolio loans, increasing by 3.67% compared to the end of the previous year (December 2023). This increase is partly explained by the rise in disbursed amounts (up to 4.17%) made by corporate business clients by the end of September 2024.

As credit quality has deteriorated, the past-due 30-day loans closed at 2.29% of the portfolio by the end of September 2024, which represents an increase of 0.35 bp compared to the end of December 2023.

Additionally, the coverage of past-due loans with provisions remains at healthy levels, exceeding 170% by the end of September 2024.

Monitoring sectorial alerts, macroeconomic changes and political environment

During the year 2024 the different monitoring and collection strategies continue to be executed in each of the segments, in order to anticipate future risks and impacts on the portfolio through a comprehensive monitoring of the economic sectors in which the bank participates, observing the behavior of macroeconomic, sectorial, financial and transactional variables to face the uncertain environment generated by the macroeconomic situation.

Over the course of the current year a greater impact has been seen on clients in the SME segment, where the main alerts continue to be a result of macroeconomic variables such as high interest rates and low economic growth, added to sectoral alerts that have been impacting portfolios such as health, construction, and mass consumption trade, mainly.

On the other hand, the natural person portfolio has been showing a more stable behavior compared to what was observed the previous year, where a recovery has been occurring as a result of better originations and better results in the collection.

All portfolios at all stages of the credit cycle continue to be managed in order to anticipate the materialization of risks, designing portfolio containment and recovery strategies.

c.Credit Risk Management – investment financial instruments

The portfolio is exposed to credit risks given the probability of incurring losses originated by the default in the payment of a coupon, principal and/or yields/dividends of a financial instrument by its issuer or counterparty. The probability of this type of events materializing may increase if there are scenarios of concentration in few issuers (counterparties) and whose credit performance is reflected by higher risk ratings; likewise, increases in credit risk may occur in scenarios in which the portfolio presents low levels of diversification at the level of type and sector of the counterparties with which financial asset transactions are carried out.

The Bank maintains the control and continuous monitoring of the assigned credit risk limits, as well as the consumption thereof. Additionally, the Bank follows up and manages alerts on counterparties and issuers of securities, based on public market information and

news related to their performance; this allows mitigating the risks of default or reduction of value for the managed positions.

For credit risk management, each of the positions that make up the portfolio of the own position are adjusted to the policies and limits that have been defined and that seek to minimize the exposure to the same:

•Term Limits

•Credit Limits

•Counterparty Limits

•Master Agreement

•Margin Agreements

•Counterparty Alerts


Credit Quality Analysis - other Financial Instruments

In order to evaluate the credit quality of a counterparty or issuer (to determine a risk level or profile), the Bank relies on two rating systems: an external one and an internal one, both of which allow to identify a degree of risk differentiated by segment and country and to apply the policies that have been established for issuers or counterparties with different levels of risk, in order to limit the impact on liquidity and/or the income statement of the Bank.

External credit rating system: is divided by the type of rating applied to each instrument or issuer; in this way the geographic location, the term and the type of instrument allow the assignment of a rating according to the methodology that each examining agency uses.

Internal credit rating system: the “ratings or risk profiles” scale is created with a range of levels that go from low risk to high risk (this can be reported in numerical or alphanumerical scales), where the rating model is sustained by the implementation and analysis of qualitative and quantitative variables at sector level, which according to the relative analysis of each variable, determine credit quality; in this way the internal credit rating system aims to establish adequate margin in decision-making regarding the management of financial instruments.

In accordance with the criteria and considerations specified in the internal rating allocation and external credit rating systems methodologies, the following schemes of relation can be established, according to credit quality given to each one of the qualification scales:

Low Risk: all investment grade positions (from AAA to BBB-), as well as those issuers that according to the information available (financial statements, relevant information, external ratings, CDS, among others) reflect adequate credit quality.

Medium Risk: all speculative grade positions (from BB+ to BB-), as well as those issuers that according to the available information (Financial statements, relevant information,

external qualifications, CDS, among others) reflect weaknesses that could affect their financial situation in the medium term.

High Risk: all positions of speculative grade (from B+ to D), as well as those issuers that according to the information available (Financial statements, relevant information, external qualifications, CDS, among others) reflect a high probability of default of financial obligations or that already have failed to fulfill them.

●Credit Quality Analysis


Maximum Exposure to Credit Risk	Debt Instruments		Equity		Derivatives*
	September 30, 2024	December 31, 2023	September 30, 2024	December 31, 2023	September 30, 2024	December 31, 2023
In Millions of COP
Low Risk	21,398,337	13,428,125	133,814	126,955	538,795	1,678,202
Medium Risk	71,057	146,155	-	-	675	316
Hihg Risk	2,979	2,879	-	-	2,177	17,327
Without Rating	-	-	36,005	53,788	86,645	95,319
Total	21,472,373	13,577,159	169,819	180,743	628,292	1,791,164
Note: A negative value corresponds to positions with a negative valuation.

●Risk exposure by credit rating:


Maximum Exposure to Credit Risk
In Millions of COP
Rating Risk	Rating Scale (1)	September 30, 2024		December 31, 2023
Low Risk	Sovereign Risk	12,095,567	54.4%	7,305,648	46.9%
Low Risk	AAA	9,434,841	42.4%	6,639,565	42.7%
Low Risk	AA+	96,377	0.4%	283,336	1.8%
Low Risk	AA	73,561	0.3%	201,229	1.3%
Low Risk	AA-	65,962	0.3%	168,942	1.1%
Low Risk	A+	76,906	0.3%	148,392	1.0%
Low Risk	A	100,978	0.5%	122,090	0.8%
Low Risk	A-	99,019	0.4%	149,047	1.0%
Low Risk	BBB+	8,837	0.0%	199,422	1.3%
Low Risk	BBB	14,465	0.1%	12,778	0.1%
Low Risk	BBB-	4,431	0.0%	2,832	0.0%
Medium Risk	BB+	70,239	0.3%	141,311	0.9%
Medium Risk	BB	1,493	0.0%	4,381	0.0%
Medium Risk	BB-	-	0.0%	780	0.0%
HighRisk	B+	2,449	0.0%	2,895	0.0%
HighRisk	B-	1,556	0.0%	1,445	0.0%
HighRisk	CCC+	439	0.0%	13,659	0.1%
HighRisk	C	660	0.0%	2,063	0.0%
HighRisk	D	53	0.0%	144	0.0%


Maximum Exposure to Credit Risk
In Millions of COP
Without Rating	SC	122,651	0.6%	149,107	1.0%
Total		22,270,484	100.0%	15,549,066	100.0%

(1) Internal homologation.

●Financial credit quality of other financial instruments that are not in default nor impaired in value

-Debt instruments: 100% of the debt instruments are not in default.

-Equity: the positions do not represent significant risks.

-Derivatives: 99.9% of the credit exposure does not present incidences of material default. The remaining percentage corresponds to default events at the end of the period.

●Maximum exposure level to the credit risk given:


Maximum Exposure to Credit Risk	Maximum Exposure		Collateral		Net Exposure
	September 30, 2024	December 31, 2023	September 30, 2024	December 31, 2023	September 30, 2024	December 31, 2023
In Millions of COP
Debt Instruments	21,472,373	13,577,159	(2,410,504)	(1,287,392)	19,061,868	12,289,767
Derivatives	628,292	1,791,164	465,815	698,663	162,477	1,092,502
Equity	169,819	180,743	-	-	169,819	180,743
Total	22,270,484	15,549,066	(1,944,689)	(588,729)	19,394,165	13,563,012
Note: In December of 2023 derivative collateral received from counterparties was COP 698,663 and in September of 2024 derivative collateral received from counterparties was COP 465,815. In debt securities, guarantees correspond to Repo, reverse repo, and securities lending trades.

Collateral - other financial instruments

Level of collateral: respect to the type of asset or operation, a collateral level is determined according to the policies defined for each product and the market where the operation is carried out.

Assets held as collateral in organized markets: the only assets that can be received as collateral are those defined by the central counterparties, the stock market where the operation is negotiated, those assets that are settled separately in different contracts or documents, which can be managed by each organization and must comply with the investment policies defined by the Bank, taking into account the credit limit for each type of asset or operation received or delivered, which collateral received are the best credit quality and liquidity.

Assets received as bilateral collateral between counterparties: the collateral accepted in international OTC derivative operations is agreed on bilaterally in the Credit Support

Annex (CSA)1 and with fulfillment in cash in dollars and managed by Citibank N.A. This company acts on behalf of Bancolombia for making international margin calls and providing a better management of the collateral.

Collateral adjustments for margin agreements: the adjustments will be determined by the criteria applied by both the external and internal regulations in effect, and at the same time, mitigation standards are maintained so that the operation fulfills the liquidity and solidity criteria for settlement.

d.Credit risk concentration - other financial instruments

Currently, the Bank's positions do not exceed the concentration limit.


Market Risk

The Bank currently measures the treasury book exposure to market risk (including OTC derivatives positions) as well as the currency risk exposure of the banking book, which is provided to the Treasury Division. The exposure to each of the market risk factors is limited according to the risk appetite determined. To achieve this objective, a series of policies and limits are actively managed and monitored.

Within the Bank, several risk measures are used with the objective of quantifying the exposure to risk and, consequently, the effect of portfolio diversification. The main measures are: i) Regulatory VaR, whose calculation are established by Annex VI of the Chapter XXXI of the Basic Accounting and Financial Circular issued by the Superintendence of Finance of Colombia and ii) Internal VaR, calculated using a weighted historical methodology with 250 observations, a holding period of 10 days, and a confidence level of 99%, along with hierarchical VaR value limits. The principles and guidelines for Market Risk management remain in accordance with the disclosures made as of December 31, 2023.

The total market risk VaR had an increase of 35.5%, rising from COP 965,729 in december 2023 to COP 1,308,847 in september 2024. Increase explained by the exposure to different market risk factors. The risk factor leading the increment is the exchange rate, which registered a greater exposure to the US dollar; followed by the interest rate factor driven mainly by the increase in the portfolio in investments in United States government bonds and local public debt. The collective investment funds factor registered an increase mainly due to valuations of the Colombia Inmobiliario Fund. On the other hand, the share price factor registered a decrease due to devaluations in investments.

Despite the current situation and market volatility, the Bank's Regulatory VaR has remained stable without significant variations:

1 A Credit Support Annex (CSA) provides credit protection by setting forth the rules governing the mutual posting of collateral. CSAs are used in documenting collateral arrangements between two parties that trade privately negotiated (over the counter) derivative securities. The trade is documented under a standard contract called a master agreement, developed by the International Swaps and Derivatives Association (ISDA).


Factor	September 30, 2024 In millions of Colombian pesos
	End of Period	Average	Maximum August, 2024	Minimum January, 2024
Interest rate	422,752	396,585	390,721	378,787
Exchange rate	449,651	356,142	488,558	234,652
Stock price	13,545	16,002	12,950	26,578
Collective investment funds	422,900	413,306	419,330	401,821
VaR Total	1,308,848	1,182,035	1,311,559	1,041,838


Factor	December 31, 2023 In millions of Colombian pesos
	End of Period	Average	Maximum August, 2023	Minimum January, 2023
Interest rate	334,375	352,633	484,964	308,204
Exchange rate	203,244	128,096	239,366	56,411
Stock price	25,951	20,880	21,374	17,313
Collective investment funds	402,159	396,851	407,600	370,716
VaR Total	965,729	898,460	1,153,304	752,644

Regarding the internal measurement of value at risk (VaR), no relevant variations were identified in the VaR metrics at the end of the quarter, nor were any exceedances of the approved limits.

It is important to mention that these exposures are under constant monitoring by senior management and serve as a tool for decision-making to preserve the stability of the Bank.

•Exposure to interest rate risk (Bank book)

To manage the interest risk of the banking book, the Bank carries out a sensitivity analysis of the interest rate risk, estimating the impact on the net interest margin in a period of twelve months on the positions of the banking book, in the event of a hypothetical change in reference rates. To do this, use the repricing criterion and assume a positive parallel change of 100 basis points (bps) in rates. The repricing criterion refers to the remaining period for the rate of an indexed operation to be adjusted according to its market reference.

Table 1 shows this sensitivity for positions in both legal and foreign currency.

Table 1. Sensitivity to Interest Rate Risk of the Banking Book


	September 30, 2024	December 31, 2023
In millions of COP
Assets sensitivity 100 bps	1,159,643	1,157,142
Liabilities sensitivity 100 bps	567,634	592,423
Net interest income sensitivity 100 bps	592,009	564,719


	September 30, 2024	December 31, 2023
In thousand of USD
Assets sensitivity 100 bps	7,274	8,211
Liabilities sensitivity 100 bps	13,226	15,335
Net interest income sensitivity 100 bps	(5,952)	(7,124)

In a scenario of increased interest rates, a positive net sensitivity would imply a greater sensitivity of the asset and, therefore, a favorable impact on the net interest margin. A negative sensitivity denotes a greater sensitivity of the liability and therefore a negative impact on the net interest margin. In the event of a fall in interest rates, the behavior in the net interest margin would be opposite to that mentioned.

●Total Exposure

The sensitivity of the net interest margin for positions in local currency, to positive and parallel variations in interest rates of 100 basis points, was COP 592,009. The variation in the sensitivity of the net interest margin between December 2023 and September 2024 is due to a decrease in the sensitivity of liabilities, explained by the reduction in the bonds and Interbank borrowings.

On the other hand, the sensitivity of the net interest margin for foreign currency positions was USD -5.95 to 100 basis points. The change between December 2023 versus September 2024 corresponds to the reduction in the Interbank borrowings offset by the increase in the balance of fixed rate CDTs.

• Assumptions and limitations

To calculate a sensitivity of the net interest margin from the term to the reprice, some significant assumptions were considered: (a) only the contractual conditions of the current operations are considered, (b) the sensitivity of the balance sheet at a fixed rate considers the amounts that They mature in a period of less than one year under the assumption that they will be placed again at market rates; and (c) changes in the interest rate appear immediately and in parallel in the asset and liability yield curves.


Liquidity Risk

At the end of the third quarter of the year, an increasing trend has been observed in liquidity levels. This behavior is aligned with the increase in deposit accounts and fixed-term deposits.

In general terms, the level of Liquid Assets has remained above the established limits.


Funding Sources	September 30, 2024	December 31, 2023
	En millones de pesos colombianos
Demand deposit	107,219,213	109,125,256
Time deposits	65,051,433	61,106,144
Total Funding Sources	172,270,646	170,231,400

●Liquidity Risk Exposure:

To estimate liquidity risk, a liquidity coverage indicator (IRL) is calculated that corresponds to the relationship between liquid assets and their net liquidity requirements for a horizon of 30 calendar days. This indicator allows you to know the liquidity coverage you have for the next month.

The net liquidity requirement is calculated from the flow of contractual maturities of the asset and the flow of contractual and non-contractual maturities of the liability, as defined in Chapter XXXI, of the CBCF of the SFC.

Below are the results of liquidity coverage for the Bank:


Liquidity Coverage Ratio	September 30, 2024	December 31, 2023
	In millions of COP
Net cash outflows into 30 days**	14,621,055	10,179,043
Liquid Assets	29,237,346	28,612,973
Liquidity coverage ratio*	200.00%	281.10%

* The minimum level of liquidity coverage required by the standard is 100%.

** 30-day liquidity requirement: 30-day contractual maturities of the asset (portfolio, liquidity operations, investments that are not liquid assets, derivatives) less contractual maturities of the liability (term deposits, passive liquidity operations, bonds, portfolio liabilities, derivatives) less non-contractual maturities of deposit accounts.

At the end of September 2024, the liquidity indicator stood at 200.0%, which represents a decrease compared to December 2023. This variation is mainly due to the reduction in active liquidity operations and the decrease in the projection of 30-day portfolio income.

●Liquid Assets

One of the Bank's main guidelines is to maintain a solid liquidity position, therefore, the Board of Directors has approved maintaining a minimum level of liquid assets, calculated based on liquidity requirements, in order to guarantee adequate operation of banking activities, such as placement of loans and withdrawals of deposits, protecting capital and taking advantage of market opportunities.

The following table shows the liquid assets held by Bank:


Liquid Assets(1)	September 30, 2024	December 31, 2023
	In millions of COP
High quality liquid assets
Cash	12,238,511	12,314,552
High quality liquid securities(2)	12,917,358	14,197,252
Other Liquid Assets
Other securities(3)	4,081,477	2,101,169
Total Liquid Assets	29,237,346	28,612,973

(1)Liquid assets: Liquid assets will be considered those that are easily realized that form part of the entity's portfolio or those that have been received as collateral in active operations in the money market, and that have not been subsequently used in passive operations in the monetary market and do not have any mobility restrictions. The following are considered liquid assets: available assets, shares in open collective investment funds without a permanence agreement, shares registered on the Colombian stock exchange that are eligible to be subject to repo or repo operations, and negotiable investments available for sale. sale of fixed income securities.

(2)High quality securities are considered to be those available and the shares that are eligible to be subject to repo or repo operations, additionally for those entities that are in the group of OMAS Placement Agents (ACO) those liquid assets that receive the Banco de la República for its monetary expansion and contraction operations described in section 3.1.1 of the External Regulatory Circular DODM-142 of the Banco de la República or otherwise (if it is not ACO) only those securities that are mandatory listing in the market maker program.

(3)Other Liquid Assets: Liquid assets that do not meet the quality characteristic are those included in this item.

•Net Stable Funding Ratio

The Net Stable Funding Ratio (CFEN) indicator seeks to ensure that entities maintain a stable funding profile in relation to their long-term assets. The Net Stable Funding Coefficient (CFEN) is a ratio between the stable funding required and the stable funding available.

The following are the results of the Net Stable Funding Ratio between December 2023 and September 2024:


Net Stable Funding Ratio
Item	September 30, 2024	December 31, 2023
Funding stable available (FED)	194,272.91	192,571.29
Funding stable Required (FER)	164,212.92	158,734.45
Net Stable Funding Ratio	118.31%	121.32%

The indicator has remained above adequate levels, without breaching the established limits. So far this year, the indicator has decreased by 301 basis points, considering the increase in the Required Stable Funding due to the growth of the loans and illiquid shares.


Operational Risk The Bank’s operational management framework objective is to carry out an adequate risk management that allows minimizing, avoiding, or reducing the materialization of adverse events and/or reducing their consequences or costs in case of materialization. The operational risk management system has not presented changes in relation to what was revealed at the end of June 2024 in terms of regulations, policies, manuals, methodologies, structure or any other relevant element that may affect its effectiveness. Until the third trimester of the current year, no new risks or changes in existing risks have been identified that significantly modify the Bank's operational risk exposure. The accumulative losses to September of 2024 reaches out to COP 290 thousand of millions, COP 193 thousand of millions explained by the fraud category, due to the increase in the capture of customer data through social engineering techniques.

In millions of COP

Acumulative

Quarterly

September 30, 2024

September 30, 2023

Quarter III, 2024

Quarter III, 2023

Operational losses

221,302

157,119

93,400

78,532