Bancolombia (NYSE: CIB) plans to expand its ATM network by 300 units in 2009 in response to the increased demand for transactions in the country, CEO Jorge Londoño told a conference call.
"For next year, we plan to be very aggressive in the expansion of our ATM network. We believe the bank is very well positioned to serve Colombia's market as our network is very balanced with the distribution of both the population and businesses," he said.
Bancolombia is the country's largest bank with more than 700 branches and some 1,650 ATMs throughout the country.
A lower level of economic growth and higher interest rates in Colombia have been slowing down the bank's loan growth over the last few months.
The bank's gross loan book grew 19.3% as of September 30 compared to the same time 2007 to 42.3tn pesos (US$18bn).
And while Bancolombia expects next year's growth to be fueled by the corporate sector, Londoño said it was "quite difficult" to give a projection.
"We are very conservative in the outlook for the next year," he said.
Some analysts have projected a 3-3.5% GDP growth for the Colombian economy for the next year.
"We believe that's possible but we would rather abstain for a month and see how things settle down to project growth."
Bancolombia's past-due loan ratio worsened to 3.5% as of September 30 from 2.8% a year ago.
Londoño declined to give a forecast for non-performing loans going forward, adding the bank has plenty of coverage for such loans.
Bancolombia booked a 367bn-peso consolidated profit in this year's third quarter, or 15.9% higher than in the same period 2007, for a 26.7% annualized ROE.
The bank's net interest margin (NIM) increased to 7.7% in 3Q08 from 7.5% in 2Q08 as the interest margin on loans increased to 8.5% from 8.3%.
Londoño said he believes the bank's NIM is at historically high levels and there may be a slight decrease as the central bank could soon start lowering rates.
The executive also said the bank is undergoing a three-year IT plan of US$120mn to revamp its core technology.
GOING TO PANAMA?
When asked about the rumor about Bancolombia having applied for a general banking license in Panama, Londoño said the country was "an interesting location" but that they had nothing definite in the works at the moment.
"We keep looking at opportunities and possibilities," he said.
In 2007, Bancolombia made its first ever purchase abroad by buying El Salvador's largest bank Banagrícola for some US$900mn.
Bancolombia commanded leading local market shares of 18.7% in deposits and 20.8% in net loans as of September 30.
The bank had 58.0tn pesos in assets and 5.77tn pesos in equity as of the same date.
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