Edgar Filing: BANCOLOMBIA SA

Filed by Bowne Pure Compliance

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 August, 2008.

Comission File Number 001-32535

Bancolombia S.A.

(Translation of registrant’s name into English)

Calle 50 No. 51-66
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 o

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 o		No þ

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

CONSOLIDATED FINANCIAL RESULTS
FOR THE QUARTER ENDED JUNE 30, 2008

August 4, 2008. Medellín, Colombia — Today, BANCOLOMBIA S.A. (“BANCOLOMBIA” or the “Bank”) (NYSE: CIB) announced its financial results for the second quarter of fiscal year 2008, ended June 30, 2008.¹


CONSOLIDATED BALANCE SHEET	Quarter									Growth
AND INCOME STATEMENT	Pro forma
(Ps. millions)	2Q07			1Q08			2Q08			2Q08 / 1Q08			2Q08 / 2Q07
ASSETS
Loans and financial leases, net		31,110,145			36,607,315			37,710,491			3.01	%		21.22	%
Investment securities, net		5,517,317			5,899,352			6,168,070			4.56	%		11.79	%
Other assets		8,383,636			9,228,530			10,432,007			13.04	%		24.43	%

Total assets		45,011,098			51,735,197			54,310,568			4.98	%		20.66	%


LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits		29,540,131			33,299,951			34,538,354			3.72	%		16.92	%
Non-interest bearing		4,499,236			4,676,607			4,764,975			1.89	%		5.91	%
Interest bearing		25,040,895			28,623,344			29,773,379			4.02	%		18.90	%
Other liabilities		11,902,250			13,514,534			14,480,464			6.67	%		21.66	%
Total liabilities		41,442,381			46,814,485			49,018,818			4.71	%		18.28	%
Shareholders’ equity		3,568,717			4,920,712			5,291,750			7.54	%		48.28	%

Total liabilities and shareholders’ equity		45,011,098			51,735,197			54,310,568			4.98	%		20.66	%


Interest income		1,152,435			1,419,605			1,494,665			5.29	%		29.70	%
Interest expense		463,861			623,160			636,839			2.20	%		37.29	%
Net interest income		688,574			796,445			857,826			7.71	%		24.58	%
Net provisions		(123,212	)		(173,234	)		(241,685	)		39.51	%		96.15	%
Fees and income from service, net		271,361			306,941			298,984			-2.59	%		10.18	%
Other operating income		47,291			134,743			195,761			45.28	%		313.95	%
Total operating expense		(556,020	)		(584,078	)		(609,566	)		4.36	%		9.63	%
Goodwill amortization		(15,302	)		(16,561	)		(10,497	)		-36.62	%		-31.40	%
Non-operating income, net		11,310			(53,429	)		29,883			155.93	%		164.22	%
Income tax expense		(82,703	)		(156,951	)		(145,359	)		-7.39	%		75.76	%

Net income		241,299			253,876			375,347			47.85	%		55.55	%


¹		This report corresponds to the consolidated financial statements of 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 Superintendency of Finance in Colombia, collectively COL GAAP. BANCOLOMBIA maintains accounting records in Colombian pesos, referred to herein as “Ps.”. 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 June 30, 2008. The statements of income for the quarter ended June 30, 2008 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.

		This report contains pro forma figures for 2Q07. The unaudited pro forma combined condensed financial statements are provided for illustrative purposes only and do not purport to represent what the actual consolidated results of operations or the consolidated financial position of BANCOLOMBIA would have been, nor are they necessarily indicative of future consolidated results of operations or consolidated financial position. These pro forma financial statements reflect certain assumptions, including (i) that the acquisition of Banagrícola S.A. (“BANAGRICOLA”) was consummated on June 30, 2006, while it in fact occurred in May 2007, and (ii) that the Bank’s capital structure at June 30, 2006 was the same as the one present at July 31, 2007. The unaudited pro forma financial statements do not include the realization of cost savings from operating efficiencies, revenue synergies or other restructuring costs resulting from or expected to result from the acquisition of BANAGRICOLA.

		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: July 1 2008 Ps. 1,923.02 = US$ 1 Average Representative Market Rate June 2008 Ps. 1,838.63 = US$ 1


Contacts
Sergio Restrepo	Jaime A. Velásquez	Juan E. Toro
Executive VP	Financial VP	IR Manager
Tel.: (574) 5108668	Tel.: (574) 5108666	Tel.: (574) 5108866

1. SUMMARY:

During the quarter ended June 30, 2008 (“2Q08”), BANCOLOMBIA recorded net income of Ps. 375.3 billion, an increase of 55.6% as compared to the pro forma Ps. 241.3 billion for the quarter ended June 30, 2007 (“2Q07”). Net income for the first six months of 2008 (“1H08”) totaled Ps. 629.2 billion, increasing 40.6% as compared to the same period of 2007.

As of June 30, 2008, BANCOLOMBIA’s gross loans totaled Ps. 39,327 billion, increasing 22.0% as compared to 2Q07. Loan growth pace, although lower than recent years’ levels, increased from the 21.5% year over year loan growth presented in the quarter ended March 31, 2008 (“1Q08”).

BANCOLOMBIA’s ratio of past due loans to total loans as of June 30, 2008 increased slightly to 3.5% from 3.4% in 1Q08. Charge-offs for 2Q08 totaled Ps. 104 billion and coverage ratio, measured as the ratio between allowances for loan and accrued interest losses and past due loans, increased to 120.1% from 115.2% in 1Q08.

BANCOLOMBIA’s efficiency ratio, measured as the ratio between operating expenses and net operating income, reached 45.8% for 2Q08 compared to the 56.7% pro forma efficiency ratio for 2Q07.

BANCOLOMBIA’s annualized average return on equity for 2Q08 was 29.5% increasing considerably from 19.7% for 1Q08. The Bank’s earnings per share for 2Q08 were Ps. 476.43 or US$0.99 per ADR.

The Bank’s positive performance in 2Q08 was mainly driven by strong growth in the main lines of revenue, such as:

	•		Net interest income that totaled Ps. 857.8 billion in 2Q08, resulting in an increase of 24.6% as compared to the pro forma figures for 2Q07.

	•		Fees and income from services that amounted to Ps. 346.5 billion in 2Q08, representing an increase of 18.0% as compared to the pro forma figures for 2Q07.

	•		Other operating income that amounted to Ps. 195.8 billion in 2Q08, representing an increase of 314.0% as compared to the pro forma figures for 2Q07.

The Bank’s performance in 2Q08 was partially off-set by:

	•		Total net provisions that amounted to Ps. 241.7 billion for 2Q08, representing an increase of 96.2% when compared to the pro forma figures for 2Q07.

	•		Fees and other service expenses that amounted to Ps 47.6 billion, increasing 113.9% as compared to the pro forma figures for 2Q07.

During 2Q08 BANCOLOMBIA executed an agreement to sell 100% of its interest in Multienlace S.A, company that provides business process outsourcing and contact center services to corporate clients. As a partial result of this deal, the Bank had non-recurring net income of Ps. 21 billion in 2Q08. In addition, the Bank recorded Ps. 19.7 billion as non-recurring net income as a consequence of the VISA IPO as explained in section 3.6 below.


	Quarter									As of
KEY FINANCIAL HIGHLIGHTS	2Q07			1Q08			2Q08			Jun-07			Jun-08
Net Income (Ps millions)		241,299			253,876			375,347			447,694			629,223
Basic and Diluted net income per ADS		0.68			0.70			0.99			1.25			1.66
Basic and Diluted net income per share $COP ⁽⁷⁾		331.31			322.25			476.43			614.70			798.68
Return on average total assets ⁽¹⁾		2.14	%		1.95	%		2.86	%		1.99	%		2.41	%
Return on average shareholders’ equity ⁽²⁾		27.05	%		19.67	%		29.48	%		25.09	%		24.40	%
P/BV ADS⁽³⁾		3.28			2.60			2.24
P/BV Local ^{(4) (5)}		3.14			2.36			2.12
P/E ⁽⁶⁾		11.77			11.86			7.62
ADR price		32.83			35.46			31.30
Common price ⁽⁷⁾		15,380			14,760			14,220
Weighted average of Preferred and Common Shares outstanding		728,314,060			787,827,003			787,827,003


⁽¹⁾		Defined as annualized quarterly net income divided by monthly average assets.

⁽²⁾		Defined as annualized quarterly net income divided by monthly average equity.

⁽³⁾		Defined as ADS price divided by ADS book value.

⁽⁴⁾		Defined as share price divided by share book value.

⁽⁵⁾		Share prices on the Colombian Stock Exchange

⁽⁶⁾		Defined as market capitalization divided by annualized quarter results.

⁽⁷⁾		Prices by the end of the respective quarter.

2. CONSOLIDATED BALANCE SHEET

2.1.		Assets

		BANCOLOMBIA’s assets totaled Ps. 54,311 billion as of June 30, 2008, representing an increase of 5.0% compared to Ps. 51,735 billion as of March 31, 2007 and an increase of 20.7% compared to Ps. 45,011 billion as of June 30, 2007.

2.1.1.		Loan Portfolio

		Loan growth increased slightly during 2Q08, reaching 3.3% as compared to 1Q08 and 22.0% as compared to 2Q07, mostly due to an increase in credit activity in June and to a higher Colombian Peso conversion rate for U.S. dollar denominated loans as a result of the depreciation of the Colombian Peso against the U.S. Dollar towards the end of 2Q08.


LOAN PORTFOLIO	As of									Growth
(Ps. millions)	30-Jun-07			31-Mar-08			30-Jun-08			Jun-08 / Mar-08			Jun-08 / Jun-07
CORPORATE
Working capital loans		14,058,294			15,825,682			16,147,393			2.03	%		14.86	%
Loans funded by domestic development banks		608,272			851,755			983,613			15.48	%		61.71	%
Trade Financing		945,679			1,229,712			993,021			-19.25	%		5.01	%
Overdrafts		145,706			141,521			227,848			61.00	%		56.38	%
Credit Cards		76,867			37,949			43,414			14.40	%		-43.52	%

TOTAL CORPORATE		15,834,818			18,086,619			18,395,289			1.71	%		16.17	%

RETAIL AND SMEs
Working capital loans		2,680,255			3,691,082			3,913,770			6.03	%		46.02	%
Personal loans		3,780,146			3,835,763			3,982,508			3.83	%		5.35	%
Loans funded by domestic development banks		439,583			752,106			807,006			7.30	%		83.58	%
Credit Cards		1,126,592			2,123,973			2,220,956			4.57	%		97.14	%
Overdrafts		218,921			288,780			306,272			6.06	%		39.90	%
Automobile loans		1,121,268			1,333,066			1,358,355			1.90	%		21.14	%
Trade Financing		80,230			73,653			96,566			31.11	%		20.36	%

TOTAL RETAIL AND SMEs		9,446,995			12,098,423			12,685,433			4.85	%		34.28	%

MORTGAGE		2,955,711			3,066,537			3,149,911			2.72	%		6.57	%

FINANCIAL LEASES		3,989,953			4,814,395			5,096,379			5.86	%		27.73	%

Total loans and financial leases		32,227,477			38,065,974			39,327,012			3.31	%		22.03	%
Allowance for loan losses and financial leases		(1,117,332	)		(1,458,659	)		(1,616,521	)		10.82	%		44.68	%

Total loans and financial leases, net		31,110,145			36,607,315			37,710,491			3.01	%		21.22	%

The composition of the loan portfolio reflected minor changes in 2Q08; corporate loans, BANCOLOMBIA’s largest segment, represented 46.8% of the loan portfolio, decreasing from 47.5% at the end of 1Q08. The Retail and SME’s segment reached 32.3% of the loan portfolio, increasing from 31.8% in 1Q08. Financial leases increased their share on the loan portfolio to 13.0%, an increase compared to a share of 12.6% in 1Q08. Finally, mortgage loans maintained their relative size in the loan portfolio, representing 8.0% of the gross loan portfolio, mainly as a result of continuous securitization processes.

Corporate loans amounted to Ps. 18,395 billion as of June 30, 2008, increasing 1.7% as compared to 1Q08 and 16.2% as compared to 2Q07, where loans funded by domestic development banks were the most dynamic, growing at a pace of 15.5% over the quarter.

Retail and small and medium-sized enterprise (“SME”) loans amounted to Ps. 12,685 billion as of June 30, 2008. This represents an increase of 4.8% as compared to 1Q08 and 34.3% as compared to 2Q07.

Financial leases amounted to Ps. 5,096 billion, increasing 5.9% as compared to 1Q08 and 27.7% as compared to 2Q07. Financial leases is a segment with a number of growth opportunities, as BANCOLOMBIA can take advantage of the cross selling derived from its client base in this segment, especially SME’s which get a tax deduction for their financial lease payouts.

Mortgage loans amounted to Ps. 3,150 billion in 2Q08, increasing 2.7% as compared to 2Q07 and 6.6% as compared to 1Q08. During 2Q08 BANCOLOMBIA securitized mortgage loans amounting to Ps. 268.3 billion. If the outstanding securitized loans are added to the outstanding loans in the Bank’s balance sheet, this segment would have recorded an increase of 23.2% compared to 2Q07 and 6.3% as compared to 1Q08.

		BANCOLOMBIA has two types of currency denominated loans: those denominated in Colombian Peso which comprise 63% of the loan portfolio and those denominated in U.S. Dollars which comprise the remaining part of the loan portfolio. Loan growth figures are affected by currency conversion, especially in periods of high volatility. Specifically, in 2Q08 the Colombian market experienced currency exchange volatility, particularly in the last week of June, when the Colombian Peso ended the quarter depreciating 4.8% against the U.S. dollar which corrected part of the appreciation trend seen during the first six months of the year. This depreciation had a positive effect on the loan portfolio growth as it impacts U.S. dollar denominated loans when converted to Colombian Pesos for accounting purposes. Even without the currency conversion effect, both the peso denominated and U.S. dollar denominated loans maintained a growth rate of over 20% on a year over year basis. U.S. dollar denominated loans grew 1.2% as compared to 1Q08 and 23.8% as compared to the pro forma figures for 2Q07 when measured in dollars. Colombian Peso denominated loans grew 2.3% as compared to 1Q08 and 22.3% as compared to pro forma figures for 2Q07.

		Net loans and financial leases represented 69.4% of the total assets as of June 30, 2008, amounting to Ps. 37,710 billion.

2.1.2.		Investment Portfolio

		As of June 30, 2008, BANCOLOMBIA’s net investment securities amounted to Ps. 6,168 billion and represented an increase of 4.5% when compared to the figures as of March 31, 2008, and an increase of 11.8% when compared to the figures as of June 30, 2007.

		As of June 30, 2008, investments in debt securities amounted to Ps. 6,014 billion and represented 97.5% of BANCOLOMBIA’s net investment securities, maintaining a stable relative size comprising 11.1% of total assets. Debt securities increased 5.7% as compared to March 31, 2008, when debt securities amounted to Ps. 5,687 billion and represented 11.0% of total assets, and an increase of 12.1% as compared to the Ps. 5,363 billion as of June 30, 2007 which represented 11.9% of total assets. The quarter over quarter increase is explained by the Bank’s need to maintain its debt securities portfolio relative size for liquidity management purposes and by the 10.8% increase in Colombian mortgage backed securities (“TIPS”) as a result of the repurchase of a portion of the mortgages securitized by the Bank in the same period, of which, a vast majority are backed by mortgages originated by the Bank according to its credit policies and standards.

		The following table presents the debt securities portfolio breakdown by type of issuer.


Debt Securities	Government (Colombia)			Government (Others)			MBS (TIPS)			Corporate (Others)			Total
Trading		20	%		0	%		1	%		11	%		32	%
Available for sale		11	%		4	%		10	%		7	%		31	%
Held to Maturity		13	%		10	%		9	%		5	%		36	%

Total		44	%		14	%		20	%		22	%		100	%


*		“Government” includes debt securities issued or backed by governments, “Corporate” means debt securities issued by corporations and “MBS” means Colombian mortgage backed securities.

2.1.3.		Asset Quality

		Asset quality measures deteriorated slightly over 2Q08 as past due loans to total loans ratio reached 3.5% of total loans, increasing from 3.4% recorded by the end 1Q08. After growing at a pace of 17.0% quarterly in 1Q08, past due loans moderated their growth rate to 6.4% in 2Q08, due in part by the write-down of a Ps. 104 billion loan in 2Q08. On the other hand, allowances for loans and accrued interest losses increased 10.9% over the quarter, increasing coverage levels, as the ratio of allowances to past due loans increased to 120.1% from 115.2% in 1Q08, while the ratio of allowances to loans classified as C, D and E (i.e. those of an inferior quality as measured by their number of days past due) at the end of 2Q08 decreased to 125.9% from 131.4% in 1Q08.

		As of June 30, 2008, allowances for loan and accrued interest losses represented 4.2% of gross loans and financial leases, while non-performing loans represented 2.0% of gross loans and financial leases.

		Increasing interest rates and continuous gradual change on the composition of the loan portfolio have been the main drivers of the Bank’s past due loans levels. The Colombian Central Bank was the first in the region to hike interest rates and has done it since April 2006 increasing its overnight lending rate from 6.00% to 10.00%. As a result of this, interest rates along the economy have increased in recent years, affecting asset quality. In addition, the gradual change in the composition of the loan book presented in recent time, as part of the increased participation of banks in the Colombian economy, has translated in higher participation of Retail and SMEs in BANCOLOMBIA’s loan book. Historically, Retail and SME’s has been a segment with two particular characteristics: (i) higher margins and (ii) higher levels of delinquencies. In conclusion, higher interest rates in the economy plus a higher participation of the SMEs segment in the loan portfolio have been accompanied by a higher level of past due loans and higher margins, which as a result, have helped to compensate the higher provisions charges in recent quarters and to maintain the Bank’s profitability.


LOANS AND FINANCIAL LEASES CLASSIFICATION
( Ps. millions)	As of 30-Jun-07					As of 31-Mar-08					As of 30-Jun-08
¨A¨ Normal		30,307,013		94.1	%		35,780,026		94.0	%		36,597,476		93.1	%
¨B¨ Subnormal		1,101,821		3.4	%		1,152,247		3.0	%		1,417,227		3.6	%
¨C¨ Deficient		260,297		0.8	%		301,742		0.8	%		374,663		1.0	%
¨D¨ Doubtful recovery		295,430		0.9	%		518,490		1.4	%		621,091		1.5	%
¨E¨ Unrecoverable		262,916		0.8	%		313,469		0.8	%		316,555		0.8	%

Total		32,227,477		100	%		38,065,974		100	%		39,327,012		100	%


Loans and financial leases classified as C, D and E as a percentage of total loans and financial leases		2.5	%				3.0	%				3.3	%


ASSET QUALITY				As of						Growth
( Ps. millions)	Jun-07			Mar-08			Jun-08			2Q 08 / 1Q 08			2Q 08 / 2Q 07
Total performing past due loans ⁽¹⁾		387,295			584,416			589,206			0.82	%		52.13	%
Total non-performing past due loans		486,762			708,370			786,658			11.05	%		61.61	%
Total past due loans		874,057			1,292,786			1,375,864			6.43	%		57.41	%
Allowance for loans and accrued interest losses		1,133,380			1,489,572			1,652,491			10.94	%		45.80	%
Past due loans to total loans		2.71	%		3.40	%		3.50	%
Non-performing loans as a percentage of total loans		1.51	%		1.86	%		2.00	%
“C”, “D” and “E” loans as a percentage of total loans		2.54	%		2.98	%		3.34	%
Allowances to past due loans ⁽²⁾		129.67	%		115.22	%		120.11	%
Allowance for loan and accrued interest losses as a percentage of “C”, “D” and “E” loans⁽²⁾		138.45	%		131.39	%		125.92	%
Allowance for loan and accrued interest losses as a percentage of non-performing loans ⁽²⁾		232.84	%		210.28	%		210.06	%
Allowance for loan and accrued interest losses as a percentage of total loans		3.52	%		3.91	%		4.20	%
Percentage of performing loans to total loans		98.49	%		98.14	%		98.00	%


⁽¹⁾		“Performing” past due loans are loans upon which the Bank 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.

The following table presents past due loans per loan category:


LOAN CLASSIFICATION				PDL/ total Loans as Of
	% Of loan Portfolio			31-Mar-08			30-Jun-08
Commercial loans		61.1	%		2.0	%		2.1	%
Consumer loans		17.6	%		6.1	%		6.2	%
Small business loans		0.3	%		9.9	%		10.2	%
Mortgage loans		8.0	%		8.4	%		7.5	%
Finance lease		13.0	%		2.6	%		3.7	%

TOTAL LOAN PORTFOLIO		100.0	%		3.4	%		3.5	%

2.2.		Liabilities

		During 2Q08 the Bank began to focus on increasing its deposit base and consolidating its competitive advantage in terms of funding costs. As of June 30, 2008, BANCOLOMBIA had Ps 34,538 billion of total deposits which represents an increase of 3.7% as compared to 1Q08 and an increase of 16.9% as compared to 2Q08. Most of the growth came in interest bearing deposits which increased 4.0% as compared to 1Q08 and 18.9% as compared to 2Q07. Nonetheless, non- interest bearing deposits grew 1.9% over 2Q08 and 5.9% over the year.

Deposit composition has continued to change over the last 12 months; non-interest bearing deposits reached 13.8% of total deposits from 15.2% in 2Q07, while interest bearing deposits increased their share of deposits to 86.2%, coming from 84.8% in 2Q07. These changes were to a large extent driven by the implementation of marginal reserve requirements that have been in place since 2Q07, which are higher for savings and checking accounts (27% marginal reserve requirement) than for time deposits (5% marginal reserve requirement), conditions that affect the funding preferences among Colombian banks. However, Resolution 5 of 2008, issued by the Colombian Central Bank’s board of directors, released on June 20, 2008, introduced some changes to the existing reserve requirement, modifying the ordinary reserve requirements to (i) 11.5% for demand deposits (ii) 6% for time deposits under 540 days; (iii) 0% for deposits with maturities above 540 days. This resolution also eliminates the marginal reserve requirements and will be applied beginning on August 13, 2008. The Bank expects these measures to eliminate the deposit cost distortion created by marginal reserve requirements, especially on branch based deposits. In addition, the Bank also expects these measures to draw some market liquidity and affect funding costs. However, the effect on market liquidity is expected to be gradually eased by the U.S. Dollar international reserves accumulation announced by the Colombian Central Bank in the same resolution.


	Jun-07		Participation			Mar-08		Participation			Jun-08		Participation
Checking Accounts		5,206,905		17.6	%		5,619,395		16.9	%		5,892,512		17.1	%
Time Deposits		12,045,703		40.8	%		14,532,213		43.6	%		16,097,667		46.6	%
Savings deposits		11,938,893		40.4	%		12,739,551		38.3	%		12,150,236		35.2	%
Other		348,630		1.2	%		408,792		1.2	%		397,939		1.2	%

Total Deposits		29,540,131		100	%		33,299,951		100	%		34,538,354		100	%

2.3.		Shareholders’ Equity

		BANCOLOMBIA’s shareholders’ equity amounted to Ps. 5,292 billion at the end of 2Q08, which represents an increase of 7.5% as compared to 1Q08, mostly explained by the operating results of the Bank in 2Q08. As compared to 2Q07, this represents an increase of 48.3%, mainly due to the Bank’s stock issuance in 3Q07.

		At the end of 2Q08, the Bank’s consolidated ratio of technical capital to risk-weighted assets was 11.8%, a slight decrease from the 11.9% recorded in 1Q08, but still 282 basis points above the minimum established by Colombian regulators.

		Unrealized losses on debt securities amounted to Ps 63.7 billion as of June 30, 2008, increasing from Ps. 49.1 billion presented by the end of 1Q08 and explained by higher interest rates on Colombia’s bonds secondary market, which affect the valuation of our available for sale and held to maturity debt securities.


TECHNICAL CAPITAL RISK WEIGHTED ASSETS
Consolidated (Ps. millions)	Jun-07			Mar-08			Jun-08
Basic capital (Tier I)		3,382,308			4,386,709			4,569,691
Additional capital (Tier II)		1,297,599			1,088,900			1,122,139
Technical capital ⁽¹⁾		4,679,907			5,475,609			5,691,830
Risk weighted assets included market risk		39,507,368			45,978,130			48,139,875

CAPITAL ADEQUACY ⁽²⁾		11.85	%		11.91	%		11.82	%


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

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

3. INCOME STATEMENT

		BANCOLOMBIA’s net income amounted to Ps. 375.3 billion for 2Q08, increasing 55.6% as compared to the pro forma figures for 2Q07, driven by double digit growth in the net interest income, fees and other operating income, and partially off-set by higher provisions. On a quarterly basis, net income for 2Q08 increased 47.9% as compared to the Ps. 253.9 billion for 1Q08.

		Net income totaled Ps. 629.2 billion for the first six months of 2008, increasing 40.6% as compared to the same period of 2007. Return on average shareholders’ equity for 2Q08 was 29.5% which represents an increase from the 27.0% in the pro forma figures for 2Q07.

3.1.		Net Interest Income

		During 2Q08, interest on loans reached Ps. 1,174 billion, increasing 3.6% as compared to 1Q08 and 35.5% as compared to the Ps. 867 billion recorded in the pro forma figures for 2Q07, mainly driven by higher interest rates as a result of the continuous re-pricing of the loan portfolio.

		Despite a weak quarter for Colombia’s bond market, interest on investment securities increased 39.4% in 2Q08 to Ps. 111,136 million, explained by a lower duration and a higher participation of variable rate instruments in the debt securities portfolio, which helped to mitigate the losses produced by mark to market valuation of the Bank’s trading portfolio.

		Overall, total interest income increased 5.3% as compared to 1Q08, while total interest expense grew at a lower rate of 2.2%. As a result, net interest income increased 7.7% as compared to 1Q08 and net interest margin increased from 7.0% in 1Q08 to 7.5% in 2Q08 due to higher margin in the loan portfolio (loans interest margin increased to 8.3% from 8.0% in 1Q08) and higher debt investment interest margin (2.1% in 2Q08 compared to 0.1% in 1Q08) .

3.2.		Provisions

		Total net provisions for 2Q08 amounted to Ps. 241.7 billion, increasing 96.2% as compared to the pro forma figures for 2Q07 and increasing 39.5% as compared to 1Q08. Specifically, provisions for loans and accrued interest losses increased 70.3% in 2Q08 as compared to pro forma 2Q07 driven by higher levels of past due loans. On the other hand, recoveries on provisions for foreclosed assets and other assets decreased 35.8% over the same period, also contributing to the higher level of net provisions.

3.3.		Fees and Income from Services

		Net fees and income from services totaled Ps. 299.0 billion during 2Q08, increasing 10.2% as compared to the pro forma figures for 2Q07 and decreasing 2.6% as compared to 1Q08. Net fees and income from services are being affected by the sale of Multienlace S.A., which occurred during 2Q08, as fees and other service expenses related to contact center services used by the Bank and provided by Multienlace S.A. are no longer considered an intercompany transaction. As a result, expenses related to contact center services were not eliminated as intercompany transactions from the 2Q08 numbers. Consequently, fees and other services expenses increased 89.7% as compared to 1Q08 and 113.9% as compared to proforma 2Q07, explaining the lower net fees and income from services rate of growth in yearly basis.

		In fact, fees and other service income before expenses grew 4.4% and 18.0% as compared to 1Q08 and 2Q07 respectively, mostly driven by a dynamic year for credit and debit card related fees, trust management, collection and payment fees, electronic services and ATM fees.

		In the last year BANCOLOMBIA has undertaken a series of initiatives to become Colombia’s credit card business leader, and as a result, the Bank’s accumulated unconsolidated credit card billing increased 26.8% when compared to the pro forma 2Q07, resulting in a 25.6% market share of the Colombian credit card business. In addition, the Bank’s number of outstanding credit cards increased 26.1%, resulting in a 17.9% market share of the Colombian total outstanding credit cards at the end of 2Q08.


ACCUMULATED CREDIT CARD BILLING	As of				%			2008
(Ps. millions)	Jun-07		Jun-08		Growth			Market Share
Bancolombia VISA		648,134		807,371		24.57	%		8.09	%
Bancolombia Mastercard		925,015		1,055,566		14.11	%		10.58	%
Bancolombia American Express		440,838		691,620		56.89	%		6.93	%
Total Bancolombia		2,013,986		2,554,557		26.84	%		25.60	%

Mercado de tarjetas de crédito en Colombia		9,098,806		9,978,510		9.67	%

Source: Credibanco y Redeban multicolor


CREDIT CARD MARKET SHARE					%			2008
(Outstanding credit cards)	Jun-07		Jun-08		Growth			Market Share
Bancolombia VISA		246,507		305,780		24.05	%		5.81	%
Bancolombia Mastercard		328,563		361,480		10.02	%		6.86	%
Bancolombia American Express		170,737		273,378		60.12	%		5.19	%
Total Bancolombia		745,807		940,638		26.12	%		17.86	%

Mercado de tarjetas de crédito en Colombia		5,011,592		5,265,859		5.07	%

Source: Credibanco y Redeban multicolor

3.4.		Other Operating Income

		Total other operating income amounted to Ps. 195.8 billion for 2Q08, positively affected by the sale of Multienlace S.A. during the quarter. According to Colombian GAAP, the gain or loss on sale of equity securities can only be recorded when the consideration involved in the transaction is effectively received by the seller. As part of the Multienlace S.A. transaction, the Bank has only received 44% of the consideration in 2Q08 equating Ps. 37 billion, which has been accounted as part of other operating income. In addition, the Bank also received a dividend income from Multienlace S.A. totaling Ps. 15 billion during the quarter. The remaining part of the consideration for the Multienlace S.A. transaction is expected to be received in the quarter ending December 31, 2008.

		Notwithstanding the non-recurring events described above, the Bank’s other operating income continues to perform in a dynamic way as foreign exchange gains and income derived from forward contracts in foreign currency continue to outperform historic results. The positive performance is explained by the competitive position the Bank has in this market, its broad base of customers and the higher activity in the forward market this year.

3.5.		Operating expenses

		Personnel expenses (the sum of salaries and employee benefits, bonus plan payment and compensation) for 2Q08 increased 10.9% as compared to 1Q08 and 16.9% as compared to the pro forma figures for 2Q07, explained by higher payouts under the bonus plan and variable compensation due to the Bank’s improved 1H08 results as compared to 1H07.

		Administrative and other expenses increased 1.5% as compared to 1Q08 and 7.5% as compared to the pro forma figures for 2Q07.

		During 2Q08, the revenues growth rate was higher than that posted by operating expenses which totaled Ps. 609.6 billion, increasing 4.4% as compared to 1Q08 and 9.6% as compared to the pro forma figures for 2Q07. As a result, BANCOLOMBIA’s efficiency, measured by the ratio of operating expenses to net operating income improved during 2Q08, reached 45.8%, which compares favorably to 56.7%, recorded in the 2Q07 pro forma figures. The Bank’s efficiency, measured as operating expenses over average total assets, was 4.7% for 2Q08, a decline as compared to 5.1% in the pro forma figures for 2Q07, but a slight increase compared to the 4.6% for 1Q08.

3.6.		Non Operating Income / Expense

		During 2Q08 total non-operating income totaled Ps 29.9 billion, of which Ps. 26.1 billion were related to the compensation received in connection with the membership rights recognized by Visa International Service Association (“Visa International”) as a result of the initial public offering of VISA Inc., which took place in 2007 (the “VISA IPO”). Under the restructuring of Visa International, financial institutions that were members of Visa International were entitled to receive compensation for their membership rights once VISA Inc. underwent its initial public offering. As a result of this, non-operating income increased 155.9% as compared to 1Q08 and 164.2% as compared to the pro forma figures for 2Q07.

3.7.		Income tax expense

		Income tax expense for 2Q08 amounted to Ps 145.4 billion decreasing 7.4% as compared to 1Q08 and increasing 75.8% as compared to the pro forma figures for 2Q07. Income tax expense for 1H08 totaled Ps. 302.3 billion increasing 72.1% as compared to the same period of 2007.


PRINCIPAL RATIOS	Quarter									As of
PROFITABILITY	2Q07			1Q08			2Q08			Jun-07			Jun-08
Net interest margin ⁽¹⁾		7.11	%		7.03	%		7.51	%		6.73	%		7.26	%
Return on average total assets ⁽²⁾		2.14	%		1.95	%		2.86	%		1.99	%		2.41	%
Return on average shareholders’ equity ⁽³⁾		27.05	%		19.67	%		29.5	%		25.09	%		24.40	%

EFFICIENCY
Operating expenses to net operating income ⁽⁴⁾		56.72	%		48.51	%		45.84	%		58.23	%		47.12	%
Operating expenses to average total assets ⁽⁵⁾		5.08	%		4.62	%		4.72	%		4.97	%		4.67	%

CAPITAL ADEQUACY
Shareholders’ equity to total assets		7.93	%		9.51	%		9.74	%
Technical capital to risk weighted assets		11.85	%		11.91	%		11.82	%


⁽¹⁾		Calculated taking into account an average between the figures as of March 2008 and as of June 2008. It’s defined as net interest income divided by monthly average interest-earning assets.

⁽²⁾		Net interest income divided by monthly average interest-earning assets.

⁽³⁾		Net income by monthly average assets.

⁽⁴⁾		Net income by monthly average shareholders’ equity.

⁽⁵⁾		Operating expenses divided by monthly average assets.


BALANCE SHEET							Last
(Ps. millions)	Jun-07		Mar-08		Jun-08		Quarter			Annual
ASSETS
Cash and due from banks		3,405,203		3,320,974		4,203,606		26.58	%		23.45	%
Overnight funds sold		513,713		958,839		820,588		-14.42	%		59.74	%
Total cash and equivalents		3,918,916		4,279,813		5,024,194		17.39	%		28.20	%

Debt securities		5,363,253		5,687,079		6,013,604		5.74	%		12.13	%
Trading		1,999,470		2,108,656		1,954,381		-7.32	%		-2.26	%
Available for Sale		1,447,851		1,917,520		1,883,080		-1.80	%		30.06	%
Held to Maturity		1,915,932		1,660,903		2,176,143		31.02	%		13.58	%
Equity securities		231,115		283,679		227,372		-19.85	%		-1.62	%
Trading		70,613		121,505		51,726		-57.43	%		-26.75	%
Available for Sale		160,502		162,174		175,646		8.31	%		9.44	%
Market value allowance		-77,051		-71,406		-72,906		2.10	%		-5.38	%
Net investment securities		5,517,317		5,899,352		6,168,070		4.56	%		11.79	%

Commercial loans		19,581,261		23,358,467		24,022,762		2.84	%		22.68	%
Consumer loans		5,569,558		6,702,199		6,925,338		3.33	%		24.34	%
Small business loans		130,994		124,376		132,622		6.63	%		1.24	%
Mortgage loans		2,955,711		3,066,537		3,149,911		2.72	%		6.57	%
Finance lease		3,989,953		4,814,395		5,096,379		5.86	%		27.73	%
Allowance for loan losses		-1,117,332		-1,458,659		-1,616,521		10.82	%		44.68	%
Net total loans and financial leases		31,110,145		36,607,315		37,710,491		3.01	%		21.22	%

Accrued interest receivable on loans		326,995		457,435		482,991		5.59	%		47.71	%
Allowance for accrued interest losses		-16,048		-30,913		-35,970		16.36	%		124.14	%
Net total interest accrued		310,947		426,522		447,021		4.81	%		43.76	%

Customers’ acceptances and derivatives		237,126		269,180		100,081		-62.82	%		-57.79	%
Net accounts receivable		625,336		699,104		855,548		22.38	%		36.81	%
Net premises and equipment		885,393		840,283		885,666		5.40	%		0.03	%
Foreclosed assets, net		40,688		27,102		23,672		-12.66	%		-41.82	%
Prepaid expenses and deferred charges		119,440		139,958		135,071		-3.49	%		13.09	%
Goodwill		873,854		877,173		909,121		3.64	%		4.04	%
Operating leases, net		345,446		608,014		630,942		3.77	%		82.65	%
Other		662,265		547,956		904,895		65.14	%		36.64	%
Reappraisal of assets		364,225		513,425		515,796		0.46	%		41.61	%

Total assets		45,011,098		51,735,197		54,310,568		4.98	%		20.66	%

LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
DEPOSITS
Non-interest bearing		4,499,236		4,676,607		4,764,975		1.89	%		5.91	%
Checking accounts		4,150,606		4,267,815		4,367,036		2.32	%		5.21	%
Other		348,630		408,792		397,939		-2.65	%		14.14	%

Interest bearing		25,040,895		28,623,344		29,773,379		4.02	%		18.90	%
Checking accounts		1,056,299		1,351,580		1,525,476		12.87	%		44.42	%
Time deposits		12,045,703		14,532,213		16,097,667		10.77	%		33.64	%
Savings deposits		11,938,893		12,739,551		12,150,236		-4.63	%		1.77	%

Total deposits		29,540,131		33,299,951		34,538,354		3.72	%		16.92	%
Overnight funds		1,882,290		2,455,473		2,772,806		12.92	%		47.31	%
Bank acceptances outstanding		57,071		61,698		36,536		-40.78	%		-35.98	%
Interbank borrowings		1,752,518		1,422,573		1,493,083		4.96	%		-14.80	%
Borrowings from domestic development banks		2,780,660		3,524,201		3,718,117		5.50	%		33.71	%
Accounts payable		1,573,156		1,999,101		2,059,164		3.00	%		30.89	%
Accrued interest payable		228,875		324,977		334,435		2.91	%		46.12	%
Other liabilities		486,007		478,117		521,447		9.06	%		7.29	%
Bonds		2,438,909		2,638,936		2,767,762		4.88	%		13.48	%
Accrued expenses		516,710		521,335		688,604		32.08	%		33.27	%
Minority interest in consolidated subsidiaries		186,054		88,123		88,510		0.44	%		-52.43	%

Total liabilities		41,442,381		46,814,485		49,018,818		4.71	%		18.28	%

SHAREHOLDERS’ EQUITY
Subscribed and paid in capital		365,375		393,914		393,914		0.00	%		7.81	%
Retained earnings		2,612,363		3,837,185		4,223,649		10.07	%		61.68	%
Appropiated		2,164,669		3,583,309		3,594,426		0.31	%		66.05	%
Unappropiated		447,694		253,876		629,223		147.85	%		40.55	%

Reappraisal and others		614,218		738,706		737,842		-0.12	%		20.13	%
Gross unrealized gain or loss on debt securities		-23,239		-49,093		-63,655		29.66	%		173.91	%

Total shareholder’s equity		3,568,717		4,920,712		5,291,750		7.54	%		48.28	%


INCOME STATEMENT	As of						Growth			Proforma									Growth
(Ps. millions)	Jun-07			Jun-08			Jun-08 / Jun-07			2Q07			1Q08			2Q08			2Q08 / 1Q08			2Q08 / 2Q07
Interest income and expenses
Interest on loans		1,664,884			2,307,700			38.61	%		866,944			1,133,438			1,174,262			3.60	%		35.45	%
Interest on investment securities		217,732			190,839			-12.35	%		118,077			79,703			111,136			39.44	%		-5.88	%
Overnight funds		56,468			49,331			-12.64	%		34,922			28,803			20,528			-28.73	%		-41.22	%
Leasing		252,939			366,400			44.86	%		132,492			177,661			188,739			6.24	%		42.45	%
Total interest income		2,192,023			2,914,270			32.95	%		1,152,435			1,419,605			1,494,665			5.29	%		29.70	%

Interest expense
Checking accounts		19,355			17,564			-9.25	%		9,197			8,819			8,745			-0.84	%		-4.91	%
Time deposits		346,805			578,168			66.71	%		185,162			276,826			301,342			8.86	%		62.75	%
Savings deposits		212,514			271,644			27.82	%		117,569			138,881			132,763			-4.41	%		12.92	%
Total interest on deposits		578,674			867,376			49.89	%		311,928			424,526			442,850			4.32	%		41.97	%

Interbank borrowings		70,102			29,935			-57.30	%		38,584			16,667			13,268			-20.39	%		-65.61	%
Borrowings from domestic development banks		119,777			169,134			41.21	%		64,267			84,665			84,469			-0.23	%		31.43	%
Overnight funds		53,404			77,467			45.06	%		24,717			42,197			35,270			-16.42	%		42.70	%
Bonds		65,177			116,087			78.11	%		24,365			55,105			60,982			10.67	%		150.29	%
Total interest expense		887,134			1,259,999			42.03	%		463,861			623,160			636,839			2.20	%		37.29	%

Net interest income		1,304,889			1,654,271			26.77	%		688,574			796,445			857,826			7.71	%		24.58	%
Provision for loan and accrued interest losses, net		(246,961	)		(449,107	)		81.85	%		(149,901	)		(193,882	)		(255,225	)		31.64	%		70.26	%
Recovery of charged-off loans		41,250			40,448			-1.94	%		21,995			21,841			18,607			-14.81	%		-15.40	%
Provision for foreclosed assets and other assets		(30,758	)		(24,316	)		-20.94	%		(8,747	)		(10,616	)		(13,700	)		29.05	%		56.63	%
Recovery of provisions for foreclosed assets and other assets		42,862			18,056			-57.87	%		13,441			9,423			8,633			-8.38	%		-35.77	%

Total net provisions		(193,607	)		(414,919	)		114.31	%		(123,212	)		(173,234	)		(241,685	)		39.51	%		96.15	%
Net interest income after provision for loans
and accrued interest losses		1,111,282			1,239,352			11.52	%		565,362			623,211			616,141			-1.13	%		8.98	%

Commissions from banking services and other services		95,056			110,313			16.05	%		47,490			53,377			56,937			6.67	%		19.89	%
Electronic services and ATM fees		37,126			42,563			14.64	%		18,227			21,392			21,171			-1.03	%		16.15	%
Branch network services		50,726			49,033			-3.34	%		25,251			23,867			25,166			5.44	%		-0.34	%
Collections and payments fees		60,559			75,649			24.92	%		31,148			36,896			38,753			5.03	%		24.42	%
Credit card merchant fees		19,306			13,984			-27.57	%		8,608			8,078			5,906			-26.89	%		-31.39	%
Credit and debit card annual fees		149,440			208,529			39.54	%		78,713			100,500			108,029			7.49	%		37.24	%
Checking fees		33,100			33,076			-0.07	%		16,653			16,350			16,726			2.30	%		0.44	%
Fiduciary activities		32,795			41,980			28.01	%		16,756			19,804			22,176			11.98	%		32.35	%
Pension plan administration		41,267			39,997			-3.08	%		19,444			20,854			19,143			-8.21	%		-1.55	%
Brokerage fees		29,949			30,456			1.69	%		15,696			14,126			16,329			15.59	%		4.03	%
Check remittance		11,126			13,011			16.94	%		5,338			6,678			6,333			-5.17	%		18.64	%
International operations		20,832			19,965			-4.16	%		10,270			10,093			9,872			-2.19	%		-3.88	%
Fees and other service income		581,282			678,556			16.73	%		293,594			332,015			346,541			4.38	%		18.03	%

Fees and other service expenses		(43,860	)		(72,631	)		65.60	%		(22,233	)		(25,074	)		(47,557	)		89.67	%		113.90	%
Total fees and income from services, net		537,422			605,925			12.75	%		271,361			306,941			298,984			-2.59	%		10.18	%

Other operating income
Net foreign exchange gains		(86,725	)		(50,326	)		-41.97	%		(68,951	)		(110,086	)		59,760			154.28	%		186.67	%
Forward contracts in foreign currency		110,340			182,848			65.71	%		80,763			166,002			16,846			-89.85	%		-79.14	%
Gains on sales of investments on equity securities		(15,123	)		37,084			345.22	%		62			(96	)		37,180			38829.17	%		59867.74	%
Gains on sale of mortgage loan		—			21,844			*			—			9,068			12,776			40.89	%		*
Dividend income		16,146			36,417			125.55	%		1,435			20,488			15,929			-22.25	%		1010.03	%
Revenues from commercial subsidiaries		43,515			51,722			18.86	%		27,306			26,087			25,635			-1.73	%		-6.12	%
Insurance income		2,169			5,797			167.27	%		1,812			4,812			985			-79.53	%		-45.64	%
Communication, postage, rent and others		9,274			45,118			386.50	%		4,864			18,468			26,650			44.30	%		447.90	%
Total other operating income		79,596			330,504			315.23	%		47,291			134,743			195,761			45.28	%		313.95	%

Total income		1,728,300			2,175,781			25.89	%		884,014			1,064,895			1,110,886			4.32	%		25.66	%
Operating expenses
Salaries and employee benefits		412,846			437,013			5.85	%		210,646			219,217			217,796			-0.65	%		3.39	%
Bonus plan payments		34,764			65,971			89.77	%		17,511			18,452			47,519			157.53	%		171.37	%
Compensation		10,413			13,534			29.97	%		4,279			7,233			6,301			-12.89	%		47.25	%
Administrative and other expenses		540,519			583,391			7.93	%		273,364			289,475			293,916			1.53	%		7.52	%
Deposit security, net		24,316			26,678			9.71	%		12,022			14,324			12,354			-13.75	%		2.76	%
Donation expenses		1,794			1,519			-15.33	%		648			973			546			-43.88	%		-15.74	%
Depreciation		63,196			65,538			3.71	%		37,550			34,404			31,134			-9.50	%		-17.09	%
Total operating expenses		1,087,848			1,193,644			9.73	%		556,020			584,078			609,566			4.36	%		9.63	%

Net operating income		640,452			982,137			53.35	%		327,994			480,817			501,320			4.26	%		52.84	%
Goodwill amortization ⁽¹⁾		31,317			27,058			-13.60	%		15,302			16,561			10,497			-36.62	%		-31.40	%
Non-operating income (expense)
Other income		64,157			80,966			26.20	%		29,598			22,338			58,628			162.46	%		98.08	%
Minority interest		(23,898	)		(10,196	)		-57.34	%		(16,323	)		(3,761	)		(6,435	)		71.10	%		-60.58	%
Other expense		(26,046	)		(94,316	)		262.11	%		(1,965	)		(72,006	)		(22,310	)		-69.02	%		1035.37	%
Total non-operating income		14,213			(23,546	)		-265.67	%		11,310			(53,429	)		29,883			155.93	%		164.22	%
Income before income taxes		623,348			931,533			49.44	%		324,002			410,827			520,706			26.75	%		60.71	%
Income tax expense		(175,654	)		(302,310	)		72.11	%		(82,703	)		(156,951	)		(145,359	)		-7.39	%		75.76	%

Net income		447,694			629,223			40.55	%		241,299			253,876			375,347			47.85	%		55.55	%

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: August 4, 2008	By:	/s/ JAIME ALBERTO VELÁSQUEZ B.
		Name:	Jaime Alberto Velásquez B.
		Title:	Vice President of Finance