Bancolombia Receives a Hold from Credit Suisse

By Carrie Williams

Credit Suisse analyst Marcelo Telles reiterated a Hold rating on Bancolombia (NYSE: CIB) yesterday and set a price target of $40. The company’s shares opened today at $33.80.

Telles observed:

“We see 3Q16 results as negative for the shares. Even though we see with good eyes the further improvement in the Tier 1 ratio, the nice performance of net fee income and the efforts on cost efficiency (mainly at the personnel expense side), results came in 18% lower q/q (7% down on a pretax basis) and 10% below our forecast (13% below consensus), negatively affected by asset quality deterioration driving provisions up. 3Q16 results suggest risks to our COP$2,546bn net income forecast for 2016 are to the downside.”

According to, Telles is ranked 0 out of 5 stars with an average return of -13.7% and a 25.0% success rate. Telles covers the Financial sector, focusing on stocks such as Banco Santander Brasil, Santander Mexico Fincl, and Banco Santander Chile.

Bancolombia has an analyst consensus of Hold.

Bancolombia’s market cap is currently $4.29B and has a P/E ratio of 10.57. The company has a book value ratio of 1.2178.

Bancolombia SA engages in the provision of financial products and services. It operates through the following segments: Banking Colombia, Banking El Salvador, Leasing, Trust, Investment Banking, Brokerage, Banking Panama, Insurance, Off Shore, and All Other. The Banking Colombia segment offers retail and corporate banking products and services. The Banking El Salvador segment involves in providing retail and commercial banking products and services. The Leasing segment includes financial and operational leases. The Trust segment provides trust services and asset management. The Investment Banking segment consists of corporate and project finance advisory, underwriting, capital markets services, and private equity management. The Brokerage segment comprises of brokerage, investment advisory, and private banking services. The Banking Panama segment offers retail and commercial banking products and services. The Insurance segment involves in providing insurance services. The Off Shore segment engages in providing a complete line of offshore banking services. The All Other segment includes results from the operation of investment vehicles. The company was founded on January 24, 1945 and is headquartered in Medellín, Colombia.