BANCOLOMBIA SA | CIK:0001071371 | 3

  • Filed: 4/30/2018
  • Entity registrant name: BANCOLOMBIA SA (CIK: 0001071371)
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    • ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory

    NOTE 7. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
     
    The following table presents information regarding the Bank’s investments in associates and joint ventures:
     
    Composition
    December 31, 2017
    December 31, 2016
    In millions of COP
    Investments in associates (1)
    1,327,610
    940,364
    Investments in Joint ventures
    237,449
    357,882
    Total
    1,565,059
    1,298,246
     
    (1)
    As of December 31, 2017 and 2016, the amount includes investments in associates at fair value for COP 757,886 and COP 434,318, respectively and investments in associates at equity value COP 569,724 and COP 506,046 respectively. See note 29 Fair value of assets and liabilities.
     
    The following are the investments in associates that the Bank holds as of December 31, 2017 and 2016:
     
    As of December 31, 2017
     
    Investments in Associates
    Company Name
    Main activity
    Country
    % of
    Ownership
    interest
    Included in
    earnings (1)
    Total OCI (2)
    OCI (Equity
    method) (3)
    OCI
    (CTA)(4)
    Carrying
    amount
    In millions of COP
    PA Viva Malls
    Development and operation of commercial spaces
    Colombia
    49.00% (5)
    144,146
    -
    -
    -
    757,886
    Protección S.A.
    Administration of pension funds and severances
    Colombia
    20.58%
    72,576
    12,465
    1,236
    -
    471,312
    Titularizadora Colombiana S.A. Hitos*
    Mortgage portfolio securities
    Colombia
    26.98%
    3,305
    (1,389)
    (768)
    -
    35,346
    Redeban Multicolor S.A.*
    Network data transmission services
    Colombia
    20.36%
    1,906
    (651)
    -
    -
    17,951
    Internacional Ejecutiva de Aviación S.A.S. *
    Aircraft and aircraft travel
    Colombia
    33.33%
    1,071
    209
    -
    -
    10,707
    Concesiones CCFC S.A.
    Construction of public works through an awarding system
    Colombia
    25.50%
    6,756
    (756)
    (3)
    -
    9,383
    ACH Colombia S.A. *
    Electronic transfer services
    Colombia
    19.94%
    3,109
    (952)
    -
    -
    7,338
    Reintegra S.A.S. *
    Collections and recovery of portfolio
    Colombia
    46.00%
    1,471
    1,742
    (1,754)
    -
    7,155
    Servicio Salvadoreño de Protección, S. A. de C.V. *
    Custodial services and transfer of monetary types
    El Salvador
    24.40%
    418
    (727)
    238
    153
    6,219
    Servicios Financieros, S.A. de C.V. *
    Processing of financial transactions and electronic payment methods
    El Salvador
    46.72%
    (226)
    9
    -
    (5)
    3,302
    ACH de El Salvador, S. A. de C.V. *
    Electronic transfer services
    El Salvador
    24.40%
    123
    6
    -
    (1)
    1,011
    Panamerican Pharmaceutical Holding Inc.(6) *
    Advisory services, consultation, representation, agent for individuals or company
    Panama
    21.00%
    (1,171)
    (1,417)
    196
    (67)
    -
    Avefarma S.A.S(6)*
    Manufacture and distribution of glass packing for pharmaceutical products
    Colombia
    21.00%
    6,307
    (11,704)
    (10,831)
    -
    -
    Glassfarma Tech S.A.S (6)  *
    Manufacturing, elaboration and commercialization of packages and pharmaceutical products
    Colombia
    21.00%
    (458)
    127
    139
    -
    -
    Net investments in associates
    239,333
    (3,038)
    (11,547)(7)
    80
    1,327,610
     
    (1)
    Corresponds to the income recognized as equity method in the statement of income for the year ended December 31, 2017. See note 24.5 Dividends received, and share of profits of equity method investees
    (2)
    Corresponds to the accumulated other comprehensive income as of December 31, 2017.
    (3)
    Corresponds to the other comprehensive income recognized as equity method for the year ended December 31, 2017.
    (4)
    Corresponds to the other comprehensive income recognized as Cumulative Translation Adjustment of Foreign Currency (CTA) for the year ended December 31, 2017.
    (5)
    As of December 31, 2017 the increses of ownership interest is related to capital contributions during the year 2017
    (6)
    As of December 31, 2017 the Bank classified the investment in Avefarma S.A.S., Glassfarma Tech S.A.S and Panamerican Pharmaceutical Holding inc as "assets held for sale", due to the fact that the management has currently been implementing a plan to sell these assets. See note 12 assets held for sale and inventories.
    (7)
    See Consolidated Statement of Comprehensive income.
     
    (*)
    For the purposes of applying the equity method of accounting, financial statements at November 30, 2017 have been used, except for Redeban Multicolor S.A., for which we use the financial statements ended at October 31, 2017. However, the Bank does not consider that appropriate adjustments have to be made since no significant transactions took place between that date and December 31, 2017.
     
    As of December 31, 2016
     
    Investments in Associates
    Company Name
    Main activity
    Country
    % of
    Ownership
    interest
    Included in
    earnings (1)
    Total OCI (2)
    OCI (Equity
    method) (3)
    OCI
    (CTA)(4)
    Carrying
    amount
    In millions of COP
    Protección S.A.*
    Administration of pension funds and severances
    Colombia
    20.58%
    54,304
    11,229
    725
    -
    434,318
    PA Viva Malls (5)
    Development and operation of commercial spaces
    Colombia
    30.68%
    -
    -
    -
    -
    388,595
    Titularizadora Colombiana S.A. Hitos*
    Mortgage portfolio securities
    Colombia
    26.98%
    2,619
    (621)
    11
    -
    35,930
    Redeban Multicolor S.A.*
    Network data transmission services
    Colombia
    20.36%
    319
    (651)
    (49)
    -
    17,006
    Avefarma S.A.S*
    Manufacture and distribution of glass packing for pharmaceutical products
    Colombia
    21.00%
    (2,378)
    (873)
    (1,202)
    -
    12,079
    Panamerican Pharmaceutical Holding Inc.*
    Advisory services, consultation, representation, agent for individuals or company
    Panama
    21.00%
    (1,196)
    (1,613)
    (1,863)
    2,934
    9,820
    Internacional Ejecutiva de Aviación S.A.S.*
    A ircraft and aircraft travel
    Colombia
    33.33%
    1,038
    209
    209
    -
    9,636
    Reintegra S.A.S.*
    Collections and recovery of portfolio
    Colombia
    46.00%
    (1,309)
    3,496
    805
    -
    8,604
    ACH Colombia S.A.*
    Electronic transfer services
    Colombia
    19.94%
    3,129
    (952)
    (878)
    -
    6,223
    Concesiones CCFC S.A.*
    Construction of public works through an awarding system
    Colombia
    25.50%
    6,606
    (753)
    (4)
    -
    5,742
    Servicio Salvadoreño de Protección, S. A. de C.V.*
    Custodial services and transfer of monetary types
    El Salvador
    24.40%
    436
    (965)
    957
    13
    5,448
    Servicios Financieros, S.A. de C.V.*
    Processing of financial transactions and electronic payment methods
    El Salvador
    46.72%
    56
    9
    (93)
    62
    3,550
    Glassfarma Tech S.A.S*
    Manufacturing, elaboration and commercialization of packages and pharmaceutical products
    Colombia
    21.00%
    425
    (12)
    (348)
    -
    2,522
    ACH de El Salvador, S. A. de C.V.*
    Electronic transfer services
    El Salvador
    24.40%
    210
    6
    (58)
    20
    891
    Multiactivos S.A. (6)
    Securitization of non-mortgage assets
    Colombia
    -
    183
    -
    70
    -
    -
    Concesiones Urbanas S.A. (winding up) (7)
    Construction of civil engineering projects
    Colombia
    -
    (141)
    -
    -
    -
    -
    Net investments in associates
    64,301
    8,509
    (1,718)(8)
    3,029
    940,364
      
    (1)
    Corresponds to the income recognized as equity method in the statement of income for the year ended December 31, 2016. See note 24.5 Dividends received, and share of profits of equity method investees
    (2)
    Corresponds to the accumulated other comprehensive income as of December 31, 2016.
    (3)
    Corresponds to the other comprehensive income recognized as equity method for the year ended December 31, 2016.
    (4)
    Corresponds to the other comprehensive income recognized as Cumulative Translation Adjustment of Foreign Currency (CTA) for the year ended December 31, 2016.
    (5)
    PA Viva Malls, an investment in an associate of Fondo inmobiliario Colombia Inmobiliario which contributed COP 388,595 in December 2016 to participate in 49% of the company. In partnership with Grupo Éxito, which owns 51%, the company's corporate purpose will be the development and management of real estate.
    (6)
    On October 19, 2016 Multiactivos S.A was wound up.
    (7)
    On November 23, 2016 Concesiones Urbanas S.A was wound up.
    (8)
    See Consolidated Statement of Comprehensive income
     
    (*)
    For the purposes of applying the equity method of accounting, financial statements at November 30, 2016 have been used, due to the fact that no more recent financial information was available. However, the Bank does not consider that appropriate adjustments have to be made since no significant transactions took place between that date and December 31, 2016.
     
    The following is additional information regarding the Bank’s most significant associates as of December 31, 2017 and 2016:
     
    As of December 31, 2017
     
    Company Name
    Assets
    Liabilities
    Income from
    ordinary
    activities
    Profits (loss)
    Dividends
    In millions of COP
    PA Viva Malls(1)
    1,262,837
    29,499
    380,612
    235,647
    35,278
    Protección S.A.(2)
    2,125,552
    663,326
    1,227,139
    343,345
    36,825
    Titularizadora Colombiana S.A. Hitos
    614,032
    487,073
    35,714
    8,161
    3,121
     
    As of December 31, 2016
     
    Company Name
    Assets
    Liabilities
    Income from
    ordinary
    activities
    Profits (loss)
    Dividends
    In millions of COP
    Protección S.A.(2)
    1,901,016
    618,573
    1,115,206
    226,554
    34,163
    Titularizadora Colombiana S.A. Hitos
    500,950
    371,827
    34,185
    8,019
    3,873
     
    (1)
    The difference between the net assets of P.A. Viva Malls multiplied by the Bank’s percentage of ownership which amounted to COP 604,336 for the year ended at December 31, 2017 and the carrying amount of the Bank’s interest in the associate, represents an adjustment amounted to COP 153,550 related to contractual terms with respect to the recognition of benefits.
    (2)
    The difference between the net assets of Protección S.A. multiplied by the Bank’s percentage of ownership which amounted to COP 300,926 and COP 263,927 for the years ended at December 31, 2017 and 2016, respectively and the carrying amount of the Bank’s interest in the associate; represents the goodwill recognized by the Bank amounting to COP 170,434.
     
    As of December 31, 2017 and 2016, there are no restrictions on the ability of the associates to transfer funds to the Bank in the form of cash dividends.
     
    The following are the Joint ventures that the Bank holds as of December 31, 2017 and 2016:
     
    December 31, 2017
     
    Company Name
    Main activity
    Country
    % of
    Ownership
    interest
    Included
    in
    earnings
    (1)
    Total
    OCI (2)
    OCI
    (Equity
    method) (3)
    Carrying
    amount
    In millions of COP
    Compañía de financiamiento Tuya S.A (4)
    Financing  company
    Colombia
    50.00%
    20,778
    -
    -
    225,548
    Puntos Colombia S.A.S (5)
    Administration of the  customers loyalty
    Colombia
    50.00%
    (1,787)
    -
    -
    7,213
    Servicios de Aceptación S.A
    Network data transmission services
    Colombia
    50.00%
    1,663
    -
    -
    4,688
    Fideicomiso Ruta del Sol - compartimento A(6)
    Investment in infrastructure projects
    Colombia
    50.00%
    (6,385)
    13
    -
    -
    Net investments in joint ventures
     
    14,269
    13
    -
    237,449
     
    (1)
    Corresponds to the income recognized as equity method in the statement of income for the year ended December 31, 2017. See note 24.5 Dividends received, and share of profits of equity method investees
    (2)
    Corresponds to the accumulated other comprehensive income as of December 31, 2017.
    (3)
    Corresponds to the other comprehensive income recognized as equity method for the year ended December 31, 2017.
    (4)
    On December 2017, given the continued impairment of the consumer loans portfolio of the company during 2017, the Bank management performed a valuation, to establish the fair value of the Compañía de Financiamiento TUYA S.A.As a result of the valuation, the fair value of the investment was lower than the book value, for this, the Bank recorded an impairment in the statement of income for COP 173,339. See note 29 Fair value for assets and liabilities.
    (5)
    In June 2017, Banca de Inversión Bancolombia formed a joint venture with Grupo Éxito. The purpose of the company is the developing and administration of customer.
    (6)
    Given the losses of Fideicomiso Ruta del Sol - compartimento A for the year 2017, the recognition of the equity method resulting in a reduction of the total book value of the investment.
     
    December 31, 2016
     
    Company Name
    Main activity
    Country
    % of
    Ownership
    interest
    Included
    in
    earnings
    (1)
    Total
    OCI (2)
    OCI
    (Equity
    method) (3)
    Carrying
    amount
    In millions of COP
    Compañía de financiamiento Tuya S.A (4)
    Financing  company
    Colombia
    50%
    (7,801)
    -
    -
    348,480
    Fideicomiso Ruta del Sol - compartimento A
    Investment in infrastructure projects
    Colombia
    50%
    778
    13
    -
    6,376
    Servicios de Aceptación S.A (5)
    Network data transmission services
    Colombia
    50%
    2,976
    -
    -
    3,026
    Net investments in joint ventures
     
    (4,047)
    13
    -
    357,882
     
    (1)
    Corresponds to the income recognized as equity method in the statement of income for the year ended December 31, 2016. See note 24.5 Dividends received, and share of profits of equity method investees
    (2)
    Corresponds to the accumulated other comprehensive income as of December 31, 2016.
    (3)
    Corresponds to the other comprehensive income recognized as equity method for the year ended December 31, 2016.
    (4)
    On October 30, 2016 the Bank sold 50% of Compañía de Financiemiento TUYA S.A. The table above presents the recognition of the Equity Method after loss of control. The difference between the net assets of Tuya multiplied by the Bank’s percentage of ownership which amounted to COP 22,550 for the year ended at December 31, 2017 and the carrying amount of the Bank’s interest in the associate, represents the goodwill recognized by the Bank amounting to COP 275,930.
    (5)
    In June 2016. Joint venture with First Data was created with the purpose of generating an alliance that promotes the business of using credit and debit cards in commercial establishments.
     
    The following is complementary information regarding the Bank’s most significant joint ventures as of December 31, 2017 and 2016:
     
    December 31, 2017
     
    Company Name
    Assets
    Liabilities
    Income from
    ordinary activities
    Profits (loss)
    Dividends
    In millons of COP
    Compañía de financiamiento TUYA S.A.
    2,571,106
    2,293,239
    1,344,712
    41,556
    371
     
    December 31, 2016
     
    Company Name
    Assets
    Liabilities
    Income from
    ordinary activities
    Profits (loss)
    Dividends
    In millons of COP
    Compañía de financiamiento TUYA S.A.
    2,474,730
    2,329,631
    1,153,155
    (13,257)
    -
     
    As of December 31, 2017, the Bank recorded a contingent liability COP 12,342 regarding its interest in Fideicomiso Ruta del Sol - Compartimiento A.
     
    As of December 31, 2015 the Bank has recognized COP 122,477 as equity method in the statement of income, COP 23,781 as other comprehensive income from equity method and COP 1,514 as other comprehensive income from currency translation adjustment. Additionally, during 2015, the Bank received dividends amounting to COP 30,320 from its significant associates.
     
    As of December 31, 2017 and 2016, there are no restrictions on the ability of the joint ventures to transfer funds to the Bank in the Form of cash dividends.