...Acquisitions Process: The bank was able to restore and sustain, at levels expected by Fitch, part of the capital deployed after the Banistmo acquisition, thanks to a good performance and capital generation that supported the capital raised after the 1Q14 offer of preferred shares. Solid Balance Sheet: Bancolombia's FCC (10.15% at December 2014) is at a level Fitch believes is in line with other similarly rated banks, especially in light of its sizable loan loss reserves. Fitch expects that Bancolombia will maintain its conservative earning retention policy and control its growth/expansion in order to sustain its market position and creditworthiness. Affected Profitability: Recent profitability metrics have been affected by increased competition and the effects of the integration of the newly acquired business. Operational profits will keep increasing steadily, allowing the bank to boast competitive profitability ratios. Strong Franchise: Bancolombia boasts a well-balanced business with...
