Edgar Filing: BANCOLOMBIA SA

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the month of March, 2011.

Comission File Number 001-32535

Bancolombia S.A.

(Translation of registrant’s name into English)

Cra. 48 # 26-85

Medellín, Colombia

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F þ Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):___

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(2):___

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨ No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .


4Q10

BANCOLOMBIA S.A. (NYSE: CIB; BVC: BCOLOMBIA, PFBCOLOM) REPORTS CONSOLIDATED NET INCOME OF COP 429 BILLION FOR THE FOURTH QUARTER OF 2010 (COP 545 PER SHARE - USD 1.14 PER ADR), WHICH REPRESENTS AN INCREASE OF 16% COMPARED TO THE SAME QUARTER LAST YEAR.

Net loans grew 7.5% during the quarter and 16.4% compared to the 4Q09. This growth confirms the improvement in the credit demand that started in 1Q10.

Loan portfolio quality continues showing a good trend. Loan deterioration during 4Q10 was COP 42 billion, 43% lower than in 3Q10 and 64% lower than in 4Q09. Charge-offs were COP 166 billion, 20% higher than in 3Q10 and 28% lower than in 4Q09. Net provision charges totaled COP 81 billon.

The balance sheet remains strong. Loan loss reserves represented 5.2% of total loans and 180% of past due loans at the end of 4Q10. The capital adequacy ratio ended the quarter at 14.7% (Tier 1 of 10.3%), a figure that is considerably higher than the 13.2% (Tier 1 de 10.4%) reported at the end of 4Q09.

Solid liquidity position. The ratio of net loans to deposits (including borrowings from domestic development banks) was 100% at the end of 4Q10, and net investment securities totaled COP 8,676 billion, a reduction of 5.2% compared to 3Q10 and of 2.7% compared to 4Q09.

Return on Equity was 19.7% for 2010. The annualized return on equity (“ROE”) based on 4Q10 results, was 22.1%. ROE for the whole year 2010 was 19.7%, in line with the profitability goals defined by the Bank.

March 7, 2011. Medellín, Colombia – Today, BANCOLOMBIA S.A. (“Bancolombia” or “the Bank”) announced its earnings results for the fourth quarter of 2010.

For the quarter ended December 31, 2010 (“4Q10”), Bancolombia reported consolidated net income of COP 429 billion, or COP 545 per share - USD 1.14 per ADR, which represents an increase of 14% as compared to the results for the quarter ended on September 30, 2010 (“3Q10”) and an increase of 16% as compared to the results for the quarter ended on December 31, 2009 (“4Q09”). The cumulative net income for 2010 was COP 1,436 billion, which is 14% higher with respect to the same period of the previous year.

Bancolombia ended 4Q10 with COP 68,095 billion in assets, 5% higher than those at the end of 3Q10 and 10% greater than at the end 4Q09. At the same time, liabilities totaled COP 60,148 billion and increased 5% as compared to the figure presented in 3Q10 and 10% as compared to 4Q091.

1 This report corresponds to the consolidated financial statements of BANCOLOMBIA S.A. (“BANCOLOMBIA”) and its affiliates of which it owns, directly or indirectly more than 50% of the voting capital stock. These financial statements have been prepared in accordance with generally accepted accounting principles in Colombia and the regulations of Superintendencia Financiera de Colombia, collectively COL GAAP. BANCOLOMBIA maintains accounting records in Colombian pesos, referred to herein as “Ps.” or “COP”. Certain monetary amounts, percentages and other figures included in this report have been subject to rounding adjustments. There have been no changes to the Bank's principal accounting policies in the quarter ended December 31, 2010. The statements of income for the quarter ended December 31, 2010 are not necessarily indicative of the results for any other future interim period. For more information, please refer to the Bank's filings with the Securities and Exchange Commission, which are available on the Commission's website at www.sec.gov.

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS: This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties; consequently, there are or will be factors, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products by other companies, lack of acceptances of new products or services by our targeted customers, changes in business strategy and various others factors, that could cause actual results to differ materially from those indicated in such statements. We do not intend, and do not assume any obligation, to update these forward-looking statements. Certain monetary amounts, percentages and other figures included in this report have been subject to rounding adjustments. Any reference to BANCOLOMBIA means the Bank together with its affiliates, unless otherwise specified.

Representative Market Rate January 1, 2011 $1913,98 =US$ 11 Average Representative Market Rate for 4Q10: $ 1.868,66 =US$ 1


4Q10

BANCOLOMBIA: Summary of consolidated financial quarterly results2

CONSOLIDATED BALANCE SHEET
AND INCOME STATEMENT	Quarter									Growth
(COP millions)	4Q 09			3Q 10			4Q 10			4Q 10/3Q 10			4Q 10/4Q 09
ASSETS
Loans and financial leases, net		39,610,307			42,891,624			46,091,877			7.46	%		16.36	%
Investment securities, net		8,914,913			9,152,209			8,675,762			-5.21	%		-2.68	%
Other assets		13,339,145			12,625,936			13,327,517			5.56	%		-0.09	%
Total assets		61,864,365			64,669,769			68,095,156			5.30	%		10.07	%

LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits		42,149,330			42,288,485			43,538,967			2.96	%		3.30	%
Non-interest bearing		6,307,780			5,873,306			7,632,216			29.95	%		21.00	%
Interest bearing		35,841,550			36,415,179			35,906,751			-1.40	%		0.18	%
Other liabilities		12,682,206			14,832,175			16,609,049			11.98	%		30.96	%
Total liabilities		54,831,536			57,120,660			60,148,016			5.30	%		9.70	%
Shareholders' equity		7,032,829			7,549,109			7,947,140			5.27	%		13.00	%
Total liabilities and shareholders' equity		61,864,365			64,669,769			68,095,156			5.30	%		10.07	%

Interest income		1,534,321			1,246,232			1,243,283			-0.24	%		-18.97	%
Interest expense		492,819			387,124			392,221			1.32	%		-20.41	%
Net interest income		1,041,502			859,108			851,062			-0.94	%		-18.29	%
Net provisions		(300,737	)		(137,778	)		(80,792	)		-41.36	%		-73.14	%
Fees and income from service, net		390,907			390,121			419,795			7.61	%		7.39	%
Other operating income		131,927			123,957			170,298			37.38	%		29.09	%
Total operating expense		(731,789	)		(755,374	)		(813,602	)		7.71	%		11.18	%
Goodwill amortization		(15,320	)		(12,823	)		(12,960	)		1.07	%		-15.40	%
Non-operating income, net		5,772			32,586			20,011			-38.59	%		246.69	%
Income tax expense		(150,858	)		(124,664	)		(124,685	)		0.02	%		-17.35	%
Net income		371,404			375,133			429,127			14.39	%		15.54	%

PRINCIPAL RATIOS	Quarter									As of
		4Q 09			3Q 10			4Q 10		Dec-09			Dec-10
PROFITABILITY
Net interest margin (1)		7.89	%		6.19	%		5.91	%		6.98	%		6.13	%
Return on average total assets (2)		2.44	%		2.36	%		2.59	%		2.01	%		2.27	%
Return on average shareholders´ equity (3)		21.78	%		20.56	%		22.07	%		19.59	%		19.71	%
EFFICIENCY
Operating expenses to net operating income		47.76	%		55.94	%		57.35	%		50.89	%		56.28	%
Operating expenses to average total assets		4.91	%		4.83	%		4.99	%		4.62	%		4.89	%
CAPITAL ADEQUACY
Shareholders' equity to total assets		11.37	%		11.67	%		11.67	%		11.37	%		11.67	%
Technical capital to risk weighted assets		13.23	%		15.17	%		14.68	%		13.23	%		14.68	%
KEY FINANCIAL HIGHLIGHTS
Net income per ADS (USD)		0.92			1.06			1.14
Net income per share $COP		471.43			476.16			544.70
P/BV ADS (4)		2.61			3.08			2.94
P/BV Local (5) (6)		2.59			3.07			2.92
P/E (7)		12.29			15.46			13.56
ADR price (8)		45.51			65.63			61.91
Common share price (8)		23,140			29,380			29,500
Shares outstanding (9)		787,827,003			787,827,003			787,827,003
USD exchange rate (quarter end)		2,044.23			1,801.01			1,913.98

(1) Defined as net interest income divided by monthly average interest-earning assets. (2) Net income divided by monthly average assets. (3) Net income divided by monthly average shareholders' equity. (4) Defined as ADS price divided by ADS book value. (5) Defined as share price divided by share book value. (6) Share prices on the Colombian Stock Exchange; (7) Defined as market capitalization divided by annualized quarter results. (8) Prices at the end of the respective quarter. (9) Common and preferred.


4Q10

1.	BALANCE SHEET

1.1.

Assets

As of December 31, 2010, Bancolombia’s assets totaled COP 68,095 billion, which represents an increase of 5% compared to 3Q10 and of 10% compared to 4Q09.

Assets denominated in COP totaled COP 51,362 billion at the end of 4Q10, increasing 8% compared to 3Q10 and 11% compared to 4Q09. Assets denominated in currencies other than COP (mainly American dollars (“USD”)) represented 25% of total assets (or USD 8.7 billion) at the end of 4Q10, decreasing 9% compared to 3Q10 and increasing 16% compared to 4Q09.

Loans and financial leases, net of provisions, represented 68% of assets at the end of 4Q10, increasing as compared to the proportion they represented at the end of 3Q10 (66%) and 4Q09 (64%). Net investments were 13% of total assets at the end of the quarter, decreasing as compared to their participation in assets at the end of 3Q10 (14%) and 4Q09 (14%).

1.2.	Loan Portfolio

During the fourth quarter of 2010, there was growth of the loan portfolio in our operation in Colombia. Loans denominated in COP totaled COP 36,075 billion at the end of 4Q10, and increased 3% compared to 3Q10 and 14% compared to 4Q09. On the other hand, loans denominated in USD totaled USD 6,544 million (26% of the loan portfolio), increasing 13% compared to 3Q10 and 30% compared to 4Q09. These USD denominated loans correspond to loans in Colombia (USD 2,431 million or 38% of loans in USD), El Salvador (USD 2,345 million or 37% of loans in USD) and other countries (USD 1,571 million or 25% of loans in USD).

The COP depreciated 6% against the USD during 4Q10 and appreciated 6% against that same currency since 4Q09. The depreciation during the quarter positively affected the conversion to COP of loans denominated in USD. Overall, Bancolombia’s gross loans totaled COP 48,601 billion at the end of 4Q10 and increased 7.1% compared to the COP 45,368 billion at the end of 3Q10.

In annual terms, gross loans increased 16% compared to the COP 42,042 billion in loans reported as of the end of 4Q09. This increase is explained by the growth of loans in both COP and USD, although the conversion of USD denominated loans to COP results in total loan growth in COP of 21% for the dollar denominated portfolio compared to 4Q09. In general, the higher volume of loans denominated in USD during the quarter, reflect increased credit demand on the part of Colombian companies. The recovery of international trade flows played a key role in the increase of loans denominated in USD. Similarly, loans denominated in COP, which constitutes the majority of our loan portfolio, confirms the positive trend that began to show in 2Q10.

Commercial loans denominated in COP remained dynamic and ended 4Q10 at COP 21,808 billion and showed an increase of 4% with respect to 3Q10. Commercial loans denominated in USD totaled USD 4,799 million at the end of the quarter and increased 18% compared to 3Q10. Companies are consistently demanding credit, which again confirms the trend that has been observed since last quarter.

Consumer loans denominated in COP also continued to show dynamism during the quarter, reaching COP 6,182 billion, a figure 8% higher than that reported at the end of 3Q10 and 28% higher than that reported at the end of 4Q09. In contrast, consumer loans originated in El Salvador continue to be subdued although they already started to show a slight improvement. Overall, consumer loans denominated in USD totaled USD 1,042 million and increased 1% with respect to 3Q10 and 3% with respect to 4Q09.


4Q10

In 4Q10, mortgage loans expressed in COP decreased COP 329 billion, and reached COP 3,343 billion. This decrease is explained by the securitization of COP 931 billion during the quarter, which resulted in a total outstanding balance of securitized mortgages of COP 3,104 billion at the end of 4Q10. When taking into account securitizations, mortgage loans increased 4% during the quarter and 11% during the past 12 months. The increased dynamism of mortgage lending in Colombia is explained by optimism regarding the economy, lower long-term interest rates, as well as by the Colombian government’s interest rate subsidy program, which have produced higher credit demand in this segment. On the other hand, the outstanding mortgage balances denominated in USD from our operation in El Salvador totaled USD 429 million, stable compared to the mortgage balances in USD reported in 3Q10 and 4% lower than those reported in 4Q09.

Financial leases, 91% of which are denominated in COP, increased 6% during the quarter and 7% compared to 4Q09. Operating leases, net of depreciation, increased 4% during 4Q10 and 19% over the last 12 months.

When analyzing the performance of the loan portfolio according to the categories established by Bancolombia to manage its commercial strategy, it becomes clear that corporate loans were key drivers of the growth of the total loan portfolio during the quarter as they increased 11% with respect to 3Q10. This increase is explained by higher demand for working capital and financing by businesses. On the other hand, retail and SME loans increased 6% in the same period due to greater demand for consumer loans and credit cards.

Reserves for loan losses increased 1% during 4Q10 and totaled COP 2,509 billion, or 5.2% of total loans at the end of the quarter. For further explanation regarding coverage of the loan portfolio and credit quality trends, please see Section 2.4. “Asset Quality, Provision Charges and Balance Sheet Strength” of this report.

The following table summarizes Bancolombia’s total loan portfolio:

LOAN PORTFOLIO				As of						Growth
(COP million)	4Q09			3Q10			4Q10			4Q10/3Q10			4Q10/4Q09
CORPORATE
Working capital loans		18,500,267			20,331,403			22,004,618			8.23	%		18.94	%
Funded by domestic development banks		527,937			324,811			319,333			-1.69	%		-39.51	%
Trade Financing		1,205,175			2,110,665			2,895,298			37.17	%		140.24	%
Overdrafts		50,602			90,155			43,885			-51.32	%		-13.27	%
Credit Cards		35,452			42,618			39,941			-6.28	%		12.66	%
TOTAL CORPORATE		20,319,433			22,899,652			25,303,075			10.50	%		24.53	%
RETAIL AND SMEs
Working capital loans		4,306,083			4,360,456			4,722,834			8.31	%		9.68	%
Personal loans		3,788,972			4,229,536			4,537,723			7.29	%		19.76	%
Loans funded by domestic development banks		801,721			727,207			679,488			-6.56	%		-15.25	%
Credit Cards		2,392,580			2,456,024			2,637,296			7.38	%		10.23	%
Overdrafts		189,026			238,226			175,066			-26.51	%		-7.39	%
Automobile loans		1,203,874			1,238,911			1,334,111			7.68	%		10.82	%
Trade Financing		100,860			43,295			35,068			-19.00	%		-65.23	%
TOTAL RETAIL AND SMEs		12,783,116			13,293,655			14,121,586			6.23	%		10.47	%
MORTGAGE		3,469,424			3,672,243			3,342,881			-8.97	%		-3.65	%
FINANCIAL LEASES		5,470,001			5,502,055			5,833,548			6.02	%		6.65	%
Total loans and financial leases		42,041,974			45,367,605			48,601,090			7.13	%		15.60	%
Allowance for loan losses		(2,431,667	)		(2,475,981	)		(2,509,213	)		1.34	%		3.19	%
Total loans and financial leases, net		39,610,307			42,891,624			46,091,877			7.46	%		16.36	%


4Q10

1.3.	Investment Portfolio

As of December 31, 2010, Bancolombia’s net investment portfolio totaled COP 8,676 billion, decreasing 5% compared to 3Q10 and 3% compared to 4Q09. The investment portfolio is mainly composed of debt investment securities, which represented 94% of Bancolombia’s total investments and 12% of assets at the end of 4Q10. Investments denominated in USD totaled USD 1,027 million and represented 23% of the investment portfolio. Additionally, the Bank has COP 2,411 billion in mortgage backed securities, which represents 28% of the investment portfolio. The duration of the debt securities portfolio was 22.9 months with a yield to maturity of 4.55% at the end of 4Q10.

1.4.

Goodwill

As of 4Q10, Bancolombia’s goodwill totaled COP 750 billion and decreased 12% compared to the amount reported in 4Q09. This variation is explained by the appreciation of the Colombian peso in the quarter and the amortization of goodwill reported during the past year (under COL GAAP, goodwill is amortized within a period of 20 years). As of December 31, 2010, Bancolombia’s goodwill included USD 390 million related mostly to the acquisition of Banagrícola in 2007 and COP 5 billion related to the acquisition of a participation of Renting Bancolombia by Leasing Bancolombia.

1.5.

Funding

As of December 31, 2010, Bancolombia’s liabilities totaled COP 60,148 billion and increased 5% compared to 3Q10 and 10% compared to 4Q09. During 4Q10, the Bank maintained a solid liquidity position. The ratio of net loans to deposits (including borrowings from domestic development banks) was 100% at the end of 4Q10 and increased compared to the 96% reported in 3Q10 and the 88% reported in 4Q09.

Deposits totaled COP 43,539 billion (or 72% of liabilities) at the end of 4Q10 and increased 3% during the quarter and 3% over the last 12 months. CDs represented 43% of deposits in 4Q09, but represented only 35% in 4Q10. This decrease is in line with the funding strategy executed by the Bank in the last few quarters, which is aimed at taking advantage of the greater liquidity and low interest rates through increasing savings and checking accounts. As a result of this recomposition of the funding mix, demand deposits went from representing 57% of the Bank’s total deposits in 4Q09, to representing 65% as of the end of 4Q10.

Through this strategy, interest expense was reduced by 26% with compared to 4Q09. Additionally, even though total deposits increased 3% during the quarter, interest expense remained stable over the same period.

DEPOSIT MIX	4Q09					3Q10					4Q10
COP Million			%					%					%
Checking accounts		8,224,948		19.51	%		8,159,806		19.30	%		9,555,933		21.95	%
Saving accounts		15,143,781		35.93	%		16,821,175		39.78	%		18,060,869		41.48	%
Time deposits		18,331,488		43.49	%		16,880,463		39.92	%		15,270,271		35.07	%
Other		449,113		1.07	%		427,041		1.01	%		651,894		1.50	%
Total deposits		42,149,330					42,288,485					43,538,967


4Q10

1.6.	Shareholders’ Equity and Regulatory Capital

Shareholders’ equity at the end of 4Q10 was COP 7,947 billion, increasing 13%, or COP 914 billion, with respect to the COP 7,033 billion reported at the end of 4Q09.

Bancolombia’s capital adequacy ratio was 14.67%, 50 basis points below the 15.17% for 3Q10 and 144 bps above the 13.23% for 4Q09. The year over year increase was a result of the growth in secondary capital, product of a subordinated bonds issuance for USD 620 million that happened in July 2010.

Bancolombia’s capital adequacy ratio was 567 basis points above the minimum level required by Colombia’s regulator, while the basic capital ratio (tier 1) was 10.32% and the tangible capital ratio, which is equal to shareholders’ equity minus goodwill and intangible assets divided by tangible assets, was 10.3% at the end of 4Q10.

TECHNICAL CAPITAL RISK WEIGHTED ASSETS
Consolidated (COP millions)	4Q 09			%			3Q 10			%			4Q 10			%
Basic capital (Tier I)		5,726,318			10.40	%		6,117,948			10.60	%		6,343,769			10.32	%
Additional capital (Tier II)		1,559,978			2.83	%		2,637,611			4.57	%		2,673,680			4.35	%
Technical capital (1)		7,286,296						8,755,559						9,017,449
Risk weighted assets included market risk		55,084,532						57,727,371						61,449,661
CAPITAL ADEQUACY (2)		13.23	%					15.17	%					14.67	%

(1) Technical capital is the sum of basic and additional capital.

(2) Capital adequacy is technical capital divided by risk weighted assets.


4Q10

2.	INCOME STATEMENT

Net income totaled COP 429 billion in 4Q10, or COP 545 per share – USD 1.14 per ADR, which represents an increase of 16% compared to 4Q09 and of 14% compared to 3Q10. Bancolombia’s ROE was 22.1% for 4Q10, higher than the annualized ROE of 20.6% for 3Q10 and the 21.8% reported in 4Q09.

2.1.	Net Interest Income

Net interest income totaled COP 851 billion in 4Q10, 1% lower than that reported in 3Q10, and 18% lower than the figure for 4Q09. Interest income decreased slightly during the quarter, while interest expense increased 1%. The lower funding cost associated with a better funding mix and the re-pricing of deposits, made it possible to compensate the lower interest rates of new loans granted during the period.

During 4Q10, income generated by the investment portfolio totaled COP 99 billion, a figure 30% lower than the COP 141 billion for 3Q10 and 68% lower than the COP 308 billion for 4Q09. During 4Q10, income generated by the investment portfolio decreased due to lower bond prices in the secondary markets. These mark-to-market losses were realized primarily in Colombia where interest rates in the secondary bond markets showed upward trends in the last months of the year.

Net Interest Margin

Annualized net interest margin ended 4Q10 at 5.9%, lower than the annualized interest margin of 6.2% reported in 3Q10. Annualized net interest margin for investments was 1.9% in 4Q10, while the annualized net interest margin for loans, financial leases and overnight funds was 6.6%. Both margins decreased with respect to those reported in 3Q10 due to lower interest rates on loans and lower income generated by our investment portfolio.

Annualized Interest
Margin	4Q09			1Q10			2Q10			3Q10			4Q10
Loans´Interest margin		7.3	%		7.1	%		7.1	%		6.7	%		6.6	%
Debt investments´margin		11.1	%		0.6	%		3.1	%		3.6	%		1.9	%
Net interest margin		7.9	%		6.1	%		6.4	%		6.2	%		5.9	%

Notably, funding cost continued to decrease significantly during 4Q10. The lower funding cost is the result of the liability re-pricing effort undertaken during the last quarters and the changes in the funding mix composition. The annualized weighted average cost of deposits reached 2.39% in 4Q10, decreasing as compared to the 2.47% and 3.36% for 3Q10 and 4Q09, respectively.

Deposits' weighted
average cost	4Q09			3Q10			4Q10
Checking accounts		0.46	%		0.47	%		0.48	%
Time deposits		5.33	%		4.00	%		3.98	%
Saving accounts		2.44	%		1.88	%		1.96	%
Total deposits		3.36	%		2.47	%		2.39	%


4Q10

2.2.	Fees and Income from Services

During 4Q10, net fees and income from services totaled COP 420 billion, 8% higher than that reported in 3Q10 and 7% higher than that reported in 4Q09. In particular, fees from collection and payment services increased 11% with respect to 3Q10, and 23% with respect to 4Q09, and fees from banking services increased 18% with respect to 3Q10 and 38% with respect to 4Q09. These increases were generated by the larger number of transactions that occur in the last quarter of the year. Fees from fiduciary activities, and fees form pension fund management decreased during 4Q10,while brokerage fees grew 28%.

The following table summarizes Bancolombia’s participation in the credit card business in Colombia:

ACCUMULATED CREDIT CARD BILLING					%			2010
(COP millions)	Dec-09		Dec-10		Growth			Market Share
Bancolombia VISA		1,753,163		1,912,045		9.06	%		7.84	%
Bancolombia Mastercard		2,314,469		2,318,740		0.18	%		9.51	%
Bancolombia American Express		1,730,273		2,494,699		44.18	%		10.23	%
Total Bancolombia		5,797,905		6,725,484		16.00	%		27.57	%
Colombian Credit Card Market		21,906,875		24,391,482		11.34	%
Source: Credibanco y Redeban multicolor

CREDIT CARD MARKET SHARE					%			2010
(Outstanding credit cards)	Dec-09		Dec-10		Growth			Market Share
Bancolombia VISA		312,164		327,787		5.00	%		5.84	%
Bancolombia Mastercard		354,936		350,271		-1.31	%		6.25	%
Bancolombia American Express		350,984		456,055		29.94	%		8.13	%
Total Bancolombia		1,018,084		1,134,113		11.40	%		20.22	%
Colombian Credit Card Market		5,228,295		5,608,067		7.26	%

Source: Credibanco y Redeban multicolor

2.3.	Other Operating Income

Total other operating income was COP 170 billion in 4Q10, 37% higher than in 3Q10, and 29% higher than in 4Q09.

Revenues aggregated in the communication, postage, rent and others totaled COP 49 billion in 4Q10, 9% higher as compared to 3Q10 and 23% higher as compared to 4Q09. This line includes commercial discounts and operating leases payments, which have grown as the value of assets rented under operating leasing contract has increased.

2.4.	Asset Quality, Provision Charges and Balance Sheet Strength

The deterioration of the loan portfolio (new past due loans before charge-offs) was COP 41 billion in 4Q10, a figure 43% lower than that presented in 3Q10 (COP 73 billion) and 64% lower than that presented in 4Q09 (COP 116 billion). This slower pace of deterioration is in line with a better performance of the economy. Credit quality continues to be impacted by unemployment, although the new vintages of loans have a low deterioration and contribute to the improvement of the loan portfolio quality.

Past due loans (those overdue more than 30 days) totaled COP 1,396 billion at the end of 4Q10, which represents 2.9% of total gross loans. The PDL ratio decreased from 3.4% at the end of 3Q10 and from 3.9% at the end of 4Q09. Loan charge-offs totaled COP 166 billion in 4Q10, 20% more than charge-offs for 3Q10 (COP 139 billion) and 28% less than those for 4Q09 (COP 229 billion).

Provision charges (net of recoveries), totaled COP 81 billion in 4Q10, 41% lower than those reported in 3Q10 and 73% lower than those of 4Q09. It is remarkable that while gross loan provisions decreased 50% in the last 12 months, recovery of charged-off loans increased 23%, and that while foreclosed asset provisions decreased 56% in the last 12 months, recovery of provisions for foreclosed assets increased 135%.


4Q10

Bancolombia maintains a strong balance sheet in terms of loan loss reserves. Allowances for loan losses totaled COP 2,509 billion, or 5.2% of total loans at the end of 4Q10, decreasing with respect to the 5.8% presented at the end of 4Q09. Additionally, coverage, measured by the ratio of allowances for loans losses (principal) to PDLs (overdue 30 days), was 180% at the end of 4Q10, increasing with respect to the 163% at the end of 3Q10, and the 149% at the end of 4Q09. Likewise, coverage measured by the ratio of allowances for loans losses to loans classified as C, D and E, was 120% at the end of the fourth quarter of 2010, increasing with comparison to 118% in 3Q10 and 113% in 4Q09.

The following tables present key metrics for asset quality:

ASSET QUALITY				As of						Growth
( COP millions)	Dec-09			Sep-10			Dec-10			4Q10/3Q10			4Q10/4Q09
Total performing past due loans (1)		659,894			545,724			516,677			-5.32	%		-21.70	%
Total non-performing past due loans		967,368			974,779			879,222			-9.80	%		-9.11	%
Total past due loans		1,627,262			1,520,503			1,395,899			-8.19	%		-14.22	%
Allowance for loans interest losses		2,431,667			2,475,981			2,509,213			1.34	%		3.19	%
Past due loans to total loans		3.87	%		3.35	%		2.87	%
Non-performing loans as a percentage of total loans		2.30	%		2.15	%		1.81	%
“C”, “D” and “E” loans as a percentage of total loans		5.11	%		4.62	%		4.32	%
Allowances to past due loans (2)		149.43	%		162.84	%		179.76	%
Allowance for loan losses as a percentage of “C”, “D” and “E” loans (2)		113.12	%		118.08	%		119.59	%
Allowance for loan losses as a percentage of non-performing loans (2)		251.37	%		254.00	%		285.39	%
Allowance for loan losses as a percentage of total loans		5.78	%		5.46	%		5.16	%
Percentage of performing loans to total loans		97.70	%		97.85	%		98.19	%

(1) "Performing" past due loans are loans upon which Bancolombia continues to recognize income although interest in respect of such loans has not been received. Mortgage loans cease to accumulate interest on the statement of operations when they are more than 60 days past due. For all other loans and financial leasing operations of any type, interest is no longer accumulated after they are more than 30 days past due.

(2)

Under Colombian Bank regulations, a loan is past due when it is at least 31 days past the actual due date.

PDL Per Category (30 days)
	% Of loan Portfolio			4Q09			3Q10			4Q10
Commercial loans		63.77	%		2.86	%		2.35	%		2.09	%
Consumer loans		16.83	%		5.42	%		4.35	%		3.65	%
Microcredit		0.52	%		8.54	%		8.59	%		8.70	%
Mortgage loans		6.88	%		9.02	%		8.80	%		9.07	%
Finance lease		12.00	%		3.30	%		3.24	%		2.12	%
PDL TOTAL		100.00	%		3.87	%		3.35	%		2.87	%

PDL Per Category (90 days)
	% Of loan Portfolio			4Q09			3Q10			4Q10
Commercial loans		63.77	%		1.88	%		1.70	%		1.45	%
Consumer loans		16.83	%		2.48	%		2.05	%		1.66	%
Microcredit		0.52	%		3.91	%		4.81	%		5.26	%
Mortgage loans		6.88	%		3.95	%		3.99	%		4.37	%
Finance lease		12.00	%		1.69	%		2.00	%		1.37	%
TOTAL LOAN PORTFOLIO		100.00	%		2.13	%		2.00	%		1.70	%


4Q10

LOANS AND FINANCIAL LEASES CLASSIFICATION	4Q09					3Q10					4Q10
( COP millions)
¨A¨ Normal		38,180,626		90.8	%		41,698,504		91.9	%		44,914,189		92.4	%
¨B¨ Subnormal		1,711,661		4.1	%		1,572,259		3.5	%		1,588,798		3.3	%
¨C¨ Deficient		703,054		1.7	%		606,209		1.3	%		606,899		1.2	%
¨D¨ Doubtful recovery		1,105,441		2.6	%		1,035,384		2.3	%		1,014,289		2.1	%
¨E¨ Unrecoverable		341,192		0.8	%		455,249		1.0	%		476,915		1.0	%
Total		42,041,974		100	%		45,367,605		100	%		48,601,090		100	%

Loans and financial leases classified as C, D and E
as a percentage of total loans and financial leases		5.11	%				4.62	%				4.32	%

2.5.	Operating Expenses

During 4Q10, operating expenses totaled COP 814 billion, increasing 8% compared to 3Q10 and 11% compared to 4Q09.

Personnel expenses (the sum of salaries and employee benefits, bonus plan payments and compensation) totaled COP 348 billion in 4Q10, increasing 11% as compared to 3Q10 and 16% as compared to 4Q09. The increase is mainly explained by the annual increment in salaries and by the charges that the Bank did in order to accumulate provisions for salary and benefit payments based on actuarial calculations defined by international financial reporting standards that will be implemented in Colombia in the near future. These charges were COP 57 billion during 4Q10 and COP 101 billion during the whole year. Had those charges not taken place during 4Q10, personnel expenses would have decreased 3% with respect to 4Q09.

During 4Q10, administrative and other expenses totaled COP 386 billion and increased 5% as compared to 3Q10 and 5% compared to 4Q09. This variation is explained by higher expenses for rentals and leasing of technology that the Bank has incurred into since some years ago. The Bank has implemented the strategy of selling real estate properties and then renting them, this with the purpose of obtaining liquidity and tax benefits. This strategy generated a gain in asset sales and increased the rent expenses. In 4Q10, Bancolombia sold or transferred properties worth COP 67 billion, which generated a gain of COP 31 billion. Rent expenses were COP 24 billion during the quarter.

Depreciation expenses totaled COP 50 billion in 4Q10, increasing 1% as compared to 3Q10 and 6% compared to 4Q09.


4Q10

3.	BANCOLOMBIA Company Description (NYSE: CIB)

Bancolombia is a full service financial institution incorporated in Colombia that offers a wide range of banking products and services to a diversified individual and corporate customer base of more than 6.9 million customers. Bancolombia delivers its products and services via its regional network comprised of Colombia’s largest non-government owned banking network, El Salvador’s leading financial conglomerate (Banagricola S.A.), off-shore banking subsidiaries in Panama, Cayman and Puerto Rico, as well as an agency in Miami. Together, Bancolombia and its subsidiaries provide stock brokerage, investment banking, leasing, factoring, consumer finance, fiduciary and trust services, asset management, pension fund administration, and insurance, among others.

Contact Information

Bancolombia’s Investor Relations

Phone (574) 4041837 / (574) 4041838

E-mail: investorrelations@bancolombia.com.co

Alejandro Majía (IR Manager) /Catalina Botero (Analyst)

Website: http://www.grupobancolombia.com/investorrelations/


4Q10

BALANCE SHEET							Last
(COP million)	Dec-09		Sep-10		Dec-10		Quarter			Annual
ASSETS
Cash and due from banks		4,983,569		4,636,088		5,312,398		14.59	%		6.60	%
Overnight funds sold		2,388,790		781,401		842,636		7.84	%		-64.73	%
Total cash and equivalents		7,372,359		5,417,489		6,155,034		13.61	%		-16.51	%
Debt securities		8,436,244		8,785,254		8,226,811		-6.36	%		-2.48	%
Trading		3,037,819		3,235,613		2,230,533		-31.06	%		-26.57	%
Available for Sale		2,175,494		2,315,513		2,245,951		-3.00	%		3.24	%
Held to Maturity		3,222,931		3,234,128		3,750,327		15.96	%		16.36	%
Equity securities		580,214		451,628		539,318		19.42	%		-7.05	%
Trading		330,840		207,177		266,135		28.46	%		-19.56	%
Available for Sale		249,374		244,451		273,183		11.75	%		9.55	%
Market value allowance		-101,545		-84,673		-90,367		6.72	%		-11.01	%
Net investment securities		8,914,913		9,152,209		8,675,762		-5.21	%		-2.68	%
Commercial loans		26,011,915		28,353,190		30,992,403		9.31	%		19.15	%
Consumer loans		6,888,615		7,589,110		8,177,175		7.75	%		18.71	%
Microcredit		202,019		251,007		255,082		1.62	%		26.27	%
Mortgage loans		3,469,424		3,672,243		3,342,881		-8.97	%		-3.65	%
Finance lease		5,470,001		5,502,055		5,833,549		6.02	%		6.65	%
Allowance for loan losses		-2,431,667		-2,475,981		-2,509,213		1.34	%		3.19	%
Net total loans and financial leases		39,610,307		42,891,624		46,091,877		7.46	%		16.36	%
Accrued interest receivable on loans		384,542		382,908		356,484		-6.90	%		-7.30	%
Allowance for accrued interest losses		-45,937		-43,246		-38,952		-9.93	%		-15.21	%
Net total interest accrued		338,605		339,662		317,532		-6.52	%		-6.22	%
Customers' acceptances and derivatives		205,367		914,322		784,888		-14.16	%		282.19	%
Net accounts receivable		806,885		667,351		797,715		19.53	%		-1.14	%
Net premises and equipment		992,041		1,068,890		1,174,625		9.89	%		18.40	%
Foreclosed assets, net		80,668		71,334		70,277		-1.48	%		-12.88	%
Prepaid expenses and deferred charges		185,811		271,879		319,864		17.65	%		72.14	%
Goodwill		855,724		719,442		750,968		4.38	%		-12.24	%
Operating leases, net		843,054		970,838		1,006,108		3.63	%		19.34	%
Other		922,265		1,365,721		1,185,977		-13.16	%		28.59	%
Reappraisal of assets		736,366		819,008		764,529		-6.65	%		3.82	%
Total assets		61,864,365		64,669,769		68,095,156		5.30	%		10.07	%
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
DEPOSITS
Non-interest bearing		6,307,780		5,873,306		7,632,216		29.95	%		21.00	%
Checking accounts		5,858,667		5,446,265		6,980,322		28.17	%		19.15	%
Other		449,113		427,041		651,894		52.65	%		45.15	%
Interest bearing		35,841,550		36,415,179		35,906,751		-1.40	%		0.18	%
Checking accounts		2,366,281		2,713,541		2,575,611		-5.08	%		8.85	%
Time deposits		18,331,488		16,880,463		15,270,271		-9.54	%		-16.70	%
Savings deposits		15,143,781		16,821,175		18,060,869		7.37	%		19.26	%
Total deposits		42,149,330		42,288,485		43,538,967		2.96	%		3.30	%
Overnight funds		1,342,201		1,530,865		1,958,846		27.96	%		45.94	%
Bank acceptances outstanding		47,609		772,779		645,374		-16.49	%		1255.57	%
Interbank borrowings		1,152,918		938,735		2,698,941		187.51	%		134.10	%
Borrowings from domestic development banks		2,886,232		2,532,858		2,551,646		0.74	%		-11.59	%
Accounts payable		1,656,154		1,661,115		1,696,201		2.11	%		2.42	%
Accrued interest payable		411,796		315,505		296,580		-6.00	%		-27.98	%
Other liabilities		665,893		728,622		689,426		-5.38	%		3.53	%
Bonds		4,173,622		5,390,862		5,718,376		6.08	%		37.01	%
Accrued expenses		239,400		891,276		283,047		-68.24	%		18.23	%
Minority interest in consolidated subsidiaries		106,381		69,558		70,612		1.52	%		-33.62	%
Total liabilities		54,831,536		57,120,660		60,148,016		5.30	%		9.70	%
SHAREHOLDERS' EQUITY
Subscribed and paid in capital		393,914		393,914		393,914		0.00	%		0.00	%
Retained earnings		5,601,028		6,008,980		6,483,741		7.90	%		15.76	%
Appropiated		4,344,178		5,001,613		5,047,247		0.91	%		16.18	%
Unappropiated		1,256,850		1,007,367		1,436,494		42.60	%		14.29	%
Reappraisal and others		1,004,293		1,103,111		1,051,856		-4.65	%		4.74	%
Gross unrealized gain or loss on debt securities		33,594		43,104		17,629		-59.10	%		-47.52	%
Total shareholder's equity		7,032,829		7,549,109		7,947,140		5.27	%		13.00	%


4Q10

INCOME STATEMENT	As of						Growth												Growth
(COP million)	Dec-09			Dec-10			Dic-10/Dic-09			4Q 09			3Q 10			4Q 10			4Q 10/3Q 10			4Q 10/4Q 09
Interest income and expenses
Interest on loans		4,900,062			3,892,114			-20.57	%		1,060,886			959,837			991,475			3.30	%		-6.54	%
Interest on investment securities		728,558			442,413			-39.28	%		307,931			140,688			99,017			-29.62	%		-67.84	%
Overnight funds		76,173			41,998			-44.86	%		13,645			6,502			6,694			2.95	%		-50.94	%
Leasing		722,905			572,160			-20.85	%		151,859			139,205			146,097			4.95	%		-3.79	%
Total interest income		6,427,698			4,948,685			-23.01	%		1,534,321			1,246,232			1,243,283			-0.24	%		-18.97	%
Interest expense		-			-						-			-			-
Checking accounts		43,211			38,858			-10.07	%		9,316			9,666			11,329			17.20	%		21.61	%
Time deposits		1,376,567			693,746			-49.60	%		247,352			169,950			159,920			-5.90	%		-35.35	%
Savings deposits		450,865			321,662			-28.66	%		89,315			77,051			85,516			10.99	%		-4.25	%
Total interest on deposits		1,870,643			1,054,266			-43.64	%		345,983			256,667			256,765			0.04	%		-25.79	%
Interbank borrowings		47,650			19,537			-59.00	%		5,469			4,255			5,923			39.20	%		8.30	%
Borrowings from domestic development banks		252,842			139,032			-45.01	%		44,800			32,575			31,590			-3.02	%		-29.49	%
Overnight funds		94,099			40,451			-57.01	%		9,844			8,219			13,701			66.70	%		39.18	%
Bonds		360,182			318,295			-11.63	%		86,723			85,408			84,242			-1.37	%		-2.86	%
Total interest expense		2,625,416			1,571,581			-40.14	%		492,819			387,124			392,221			1.32	%		-20.41	%
Net interest income		3,802,282			3,377,104			-11.18	%		1,041,502			859,108			851,062			-0.94	%		-18.29	%
Provision for loan and accrued interest losses, net		(1,317,846	)		(788,794	)		-40.15	%		(358,770	)		(187,855	)		(179,920	)		-4.22	%		-49.85	%
Recovery of charged-off loans		214,251			276,209			28.92	%		78,886			61,273			96,701			57.82	%		22.58	%
Provision for foreclosed assets and other assets		(98,437	)		(67,187	)		-31.75	%		(27,007	)		(15,562	)		(12,009	)		-22.83	%		-55.53	%
Recovery of provisions for foreclosed assets and other assets		48,658			32,057			-34.12	%		6,154			4,366			14,436			230.65	%		134.58	%
Total net provisions		(1,153,374	)		(547,715	)		-52.51	%		(300,737	)		(137,778	)		(80,792	)		-41.36	%		-73.14	%
Net interest income after provision for loans		-			-						-			-			-
and accrued interest losses		2,648,908			2,829,389			6.81	%		740,765			721,330			770,270			6.78	%		3.98	%
Commissions from banking services and other services		251,734			306,917			21.92	%		62,132			72,379			85,519			18.15	%		37.64	%
Electronic services and ATM fees		58,944			57,019			-3.27	%		14,776			13,830			15,999			15.68	%		8.28	%
Branch network services		110,837			118,647			7.05	%		29,743			29,825			32,684			9.59	%		9.89	%
Collections and payments fees		187,348			226,537			20.92	%		50,460			56,271			62,306			10.72	%		23.48	%
Credit card merchant fees		28,200			18,355			-34.91	%		7,134			3,410			7,052			106.80	%		-1.15	%
Credit and debit card annual fees		548,820			564,457			2.85	%		140,205			143,803			139,818			-2.77	%		-0.28	%
Checking fees		69,544			69,425			-0.17	%		17,293			17,504			17,622			0.67	%		1.90	%
Fiduciary activities		171,927			165,075			-3.99	%		48,123			41,610			40,042			-3.77	%		-16.79	%
Pension plan administration		96,678			90,131			-6.77	%		24,490			19,922			24,107			21.01	%		-1.56	%
Brokerage fees		45,966			36,779			-19.99	%		15,601			9,182			11,736			27.82	%		-24.77	%
Check remittance		25,812			17,693			-31.45	%		6,333			3,860			4,774			23.68	%		-24.62	%
International operations		53,614			58,559			9.22	%		10,151			15,890			15,575			-1.98	%		53.43	%
Fees and other service income		1,649,424			1,729,594			4.86	%		426,441			427,486			457,234			6.96	%		7.22	%
Fees and other service expenses		(143,151	)		(149,653	)		4.54	%		(35,534	)		(37,365	)		(37,439	)		0.20	%		5.36	%
Total fees and income from services, net		1,506,273			1,579,941			4.89	%		390,907			390,121			419,795			7.61	%		7.39	%
Other operating income		-			-						-			-			-
Net foreign exchange gains		(216,411	)		62,110			128.70	%		51,124			(1,912	)		41,053			2247.12	%		-19.70	%
Derivatives Financial Contracts		265,969			51,491			-80.64	%		17,971			26,845			12,943			-51.79	%		-27.98	%
Gains(loss) on sales of investments on equity securities		584			45,716			7728.08	%		(25	)		9,634			2,495			-74.10	%		10080.00	%
Securitization income		53,784			85,862			59.64	%		12,341			18,698			41,648			122.74	%		237.48	%
Dividend income		24,045			34,699			44.31	%		89			4,935			2,200			-55.42	%		2371.91	%
Revenues from commercial subsidiaries		96,605			87,625			-9.30	%		20,965			20,970			23,160			10.44	%		10.47	%
Insurance income		12			2,808			23300.00	%		(10,106	)		15			(1,788	)		-12020.00	%		-82.31	%
Communication, postage, rent and others		156,088			177,673			13.83	%		39,568			44,772			48,587			8.52	%		22.79	%
Total other operating income		380,676			547,984			43.95	%		131,927			123,957			170,298			37.38	%		29.09	%
Total income		4,535,857			4,957,314			9.29	%		1,263,599			1,235,408			1,360,363			10.11	%		7.66	%
Operating expenses		-			-						-			-			-
Salaries and employee benefits		1,034,942			1,139,947			10.15	%		257,271			282,878			303,752			7.38	%		18.07	%
Bonus plan payments		90,341			126,839			40.40	%		37,340			24,289			40,624			67.25	%		8.79	%
Compensation		19,725			27,551			39.68	%		5,513			6,229			3,935			-36.83	%		-28.62	%
Administrative and other expenses		1,418,145			1,455,025			2.60	%		366,411			367,891			385,660			4.83	%		5.25	%
Deposit security, net		74,228			84,399			13.70	%		16,846			21,221			22,033			3.83	%		30.79	%
Donation expenses		3,506			13,008			271.02	%		1,402			3,565			7,940			122.72	%		466.33	%
Depreciation		185,027			195,744			5.79	%		47,006			49,301			49,658			0.72	%		5.64	%
Total operating expenses		2,825,914			3,042,513			7.66	%		731,789			755,374			813,602			7.71	%		11.18	%
Net operating income		1,709,943			1,914,801			11.98	%		531,810			480,034			546,761			13.90	%		2.81	%
Goodwill amortization (1)		69,231			55,966			-19.16	%		15,320			12,823			12,960			1.07	%		-15.40	%
Non-operating income (expense)		-			-			0.00	%		-			-			-			0.00	%		0.00	%
Other income		198,761			267,472			34.57	%		16,924			62,788			105,205			67.56	%		521.63	%
Minority interest		(15,081	)		(13,217	)		-12.36	%		4,294			(6,159	)		(2,116	)		-65.64	%		-149.28	%
Other expense		(105,529	)		(168,179	)		59.37	%		(15,446	)		(24,043	)		(83,078	)		245.54	%		437.86	%
Total non-operating income		78,151			86,076			10.14	%		5,772			32,586			20,011			-38.59	%		246.69	%
Income before income taxes		1,718,863			1,944,911			13.15	%		522,262			499,797			553,812			10.81	%		6.04	%
Income tax expense		(462,013	)		(508,417	)		10.04	%		(150,858	)		(124,664	)		(124,685	)		0.02	%		-17.35	%
Net income		1,256,850			1,436,494			14.29	%		371,404			375,133			429,127			14.39	%		15.54	%

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	BANCOLOMBIA S.A. (Registrant)

Date: March 7, 2011	By:	/s/ JAIME ALBERTO VELÁSQUEZ B.
		Name:	Jaime Alberto Velásquez B.
		Title:	Vice President of Finance