... reported a solid performance in 2016, with a ratio of operating profit to risk weighted assets of 2.38%. Higher interest income on earning assets, increased net fees and improved operating efficiency underpinned Bancolombia's profitability. The bank's higher net interest margin reflected a quicker repricing of assets (60% of the loan portfolio is variable rate) compared with liabilities, and the benefits of having the lowest-cost deposit base in the Colombian market. Improved Capitalization: Bancolombia's low capitalization compared to its peers (emerging market commercial banks in the `bbb' rating category) remains the bank's main credit weakness, despite recent improvements. Considering Bancolombia's sound internal capital generation and Fitch Ratings' expectations for continued moderate growth, the agency believes Bancolombia will sustain the positive trend in capital ratios. Increase in Loan Delinquency: Bancolombia's past-due loans...
