CONTENTS
1. ABOUT THE BANK
2. FINANCIAL RESULTS •MacroeconomicEnvironment •OurResults
3. OUR BANK AT THE SERVICE OF CUSTOMERS
•OurSegments •ProductsandServices •PhysicalandElectronicChannels •TreasuryandForeignCurrency •Customer’sstories
4. TOWARDS A MORE DIGITAL BANK
5. WE ARE HELPING TO BUILD A BETTER SOCIETY
•OurTalent •OurCommitmenttoSociety
12
24
44
72
78
Management Report 2018 3
*Employees include full-time employees, personnel employed through temporary agencies and outsourced personnel. It does not include 663 SENA students (contract trainees).**Reflects the number of Banco de Bogotá, Porvenir, Almaviva, Banco de Bogotá Panama, Fiduciaria Bogotá and BAC Credomatic branches. Banco de Bogotá and BAC represent 1,443 branches.
Financial Performance
Banco de Bogotá - Main Indicators UNCONSOLIDATED CONSOLIDATED
2017 2018 2017 2018
Net Income (2)
1,924 2,8252,296 3,131
Net Income Attributable to Shareholders(2) 2,064 2,937Profitability RatiosROAA (3) 2.3% 3.3% 1.6% 2.1%ROAE (4) 12.0% 16.8% 12.5% 17.1%Net Interest Margin (5) 5.4% 5.2% 6.0% 5.7%Fee Income (6) 21.8% 22.3% 35.6% 34.8%Administrative Efficiency (7) 38.7% 35.9% 49.2% 47.5%Total Solvency Ratio 21.2% 20.7% 13.5% 13.5%Basic Solvency Ratio 13.8% 13.2% 8.8% 8.9%Loan Portfolio Quality (8)
Past Due Loans / Gross Loans (9) 3.9% 4.4% 3.5% 4.0%Loan Allowances / Past Due Loans (9) 123.4% 136.0% 90.8% 116.7%
(1) Includes repos and interbank operations.(2) Figures in billions of pesos. (3) Annual Net Income/Average Quarterly Assets for the year (includes the quarters ending in December of the previous year, and those ending in March, June, September and December of the current year).(4) Annual Net Income Attributable to Shareholders/Average Attributable Quarterly Equity for the year (includes the quarters ending in December of the previous year, and those ending in March, June, Septem-ber and December of the current year).(5) Net Interest Income from the Period/Average Quarterly Earning Assets for the year (includes the quarters ending in December of the previous year, and those ending in March, June, September and Decem-ber of the current year).(6) Gross fee-income/net interest income from allowances + gross fee-income + other operating income. Excludes other income from operations. (Does not include Net Income Share from affiliates, nor dividends from the unconsolidated operation.)(7) Personnel expenses + administrative expenses before annual depreciation and amortization/operating income before allowances. For the Unconsolidated Bank the 2017 ratio was recalculated due to the deterioration of other assets being reclassified as “other operating expenses”; they were previously included as “administrative expenses.”(8) Loan portfolio indicators are calculated with gross loans, including portfolio accounts receivable.(9) Past due loans: more than 30 days overdue.
Banco de Bogotá - Balance sheetUNCONSOLIDATED CONSOLIDATED
Figures in IFRS (billions of COP) 2017 2018 2017 2018
Assets 83,276 91,360 149,405 163,303Cash and Equivalents 6,195 8,214 16,925 22,061Loans and Financial Leases, Net (1) 53,183 55,843 104,244 111,018Fixed Income Investments, Net 4,594 4,526 12,337 11,989Equity Investment, Net 16,294 19,113 4,967 6,169Other Assets 3,009 3,665 10,932 12,065Liabilities 66,553 73,098 131,195 143,635Deposits 51,973 54,131 100,947 108,405Other Liabilities 14,580 18,966 30,248 35,230Equity 16,723 18,263 18,210 19,668
MILLIONSOF CLIENTS
21.3 45,536
EMPLOYEES* BRANCHES**
1,564 3,804
ATMS
MARKET
Net Loans12.2% 13.8%
11
PRESENCE
11,739
SHAREHOLDERS
SHAREMARKET
SHARE
Deposits Net Loans10.1% 9.4%
Deposits
Countries
Razones de Rentabilidad
Balance General - Consolidado
Activos
Pasivos
Patrimonio
Efectivo y Equivalentes de Efectivo
Cartera de Créditos y Leasing Financiero, Netos
Inversiones en Títulos de Deuda, Netas
Inversiones en Títulos Participativos, Netas
Otros Activos
Depósitos
Otros Pasivos
2,296 3,131
Principales Indicadores
2,064 2,937
Utilidad Neta
Utilidad Neta Atribuible a Accionistas
Relación deSolvencia Básica
Cartera Vencida /Cartera Bruta
Provisión Cartera /Cartera Vencida
ROAA ROAE Margen Netode Intereses
Ingresos porComisiones
EficienciaAdministrativa
Relación deSolvencia Total
1.6%2.1%
8.8%8.9%
3.5%4.0%
90.8%116.7%
12.5%17.1%
6.0%5.7%
35.1%33.2%
49.2%47.5%
13.5%13.5%
2017
2018
149,405
16,925
131,195
2017
104,244
12,337
4,967
10,932
100,947
30,248
18,210
163,303
22,061
143,635
2018
111,018
11,989
6,169
12,065
108,405
35,230
19,668
MARKETSHARE
MARKETSHARE
Management Report 2018 Management Report 2018 54
ALEJANDRO FIGUEROA JARAMILLOCEO
Dear shareholders,
Itismypleasuretoaddressyou,membersoftheGeneralShareholders’Meeting,tosubmittoyouourManagementReport,wherewepresenttheresultsofBancodeBogotáanditssubsidiariesin2018.
Thisyear,westrengthenedour transformationplan tocontinuegrowing,whilemaintainingourleadershippositioninthemarket.
Iwouldliketobeginthisletterbyhighlightingsomeofourmostrelevantachievements:
Annual results
Itisasourceofgreatprideandsatisfactionformeandthe45,536employeesofBancodeBogotáanditssubsidiaries,toannouncethatweclosedourfiscalyearwithexceptionalresults,achievinga consolidatednet incomeattributable to shareholdersofCOP2.9 trillion.Wewerefirst, in theColombianbankingsystem,intermsofnetincome,thankstoa42.3%year-on-yeargrowthandanincreaseinprofitabilityofourshareholder’sequity,whichrosefrom12.5%in2017to17.1%attheendof2018.TheseresultsstrengthenourpathofprofitablegrowthandreinforcethesolvencyandstrengththathavealwayscharacterizedBancodeBogotá.
Thisyear’s resultswere influencedbythestrongperformanceof thebankingbusiness,withourconsolidatedgross loanportfoliogrowingby7.0%,reachingCOP110trillion.Ofhighlight inouroperationinColombia,isthemortgagebusiness,whichmaintainedapositivetrend,increasingby18.4%itsportfolioVs2017,agrowth619basispointshigherthanthebankingsystem’s.Further-more,ourconsumerportfoliogrew7.5%comparedto2017.InCentralAmerica,ourcommercialbankingandcreditcardportfoliospresentedapositivetendencywithannualgrowthratesof7.1%and6.5%,respectively,withoutthe impactof foreignexchange.ThesefigurespositionBACCre-domaticastheregion’smostimportantFinancialGroup,withanetloanportfoliomarketshareof10.1%.
Inlinewiththegrowthofthegross loanportfolio,theBank’sdeposits increasedby7.4%,drivenbycheckingaccountsandtimedeposits,whichgrew13.2%and9.2%,respectively.Asaresult,wemaintainedour13.8%marketshareInColombiaandthefirstplaceinCentralAmerica,withamar-ketshareof9.4%.
Interestincomeincreasedby4.7%duringtheyear,similartothegrowthpresentedbyournetfeein-come,at4.8%inthesameperiod.FeeIncomefrombankingservicesinColombiaandCentralAmericawereparticularlyimportant,increasing6.0%and5.4%,respectively,showingafavorabletrend.
BancodeBogotá’sefficiencyratioimprovedby168basispoints,givencontrolledgrowthofoperat-ingexpensesfrom2017to2018andtheoverallincreaseinincomeduringthisperiod.Thisdemon-stratestheBank’scommitmenttooptimizationofitsoperationinColombiaandinCentralAmerica.
Supportingtheresults fromourbankingoperation,wehadapre-tax incomeofCOP313billionfromthesaleofrealestateproperties,carriedoutasasaleandleasebacktransactioninOctober2018.Throughthistransactionwetransferred14realestateassetstoaprivatecapitalfund,allow-ingustodisclosetheirfairvalue,thusoptimizingcapitalandstrengtheningourequityviacapital-izationoftheseprofits.
Moreover,weachievedhigherincomefromequityparticipation,primarilyfromtheprofitsofourinvestment inCorficolombiana, stemming fromtheapplicationof thenewparametersadoptedbyIFRS15.Thisnewstandardchangestheaccountingmethodforincomegeneratedbyhighwayinfrastructureprojects,better representing theeconomicsituationofconcessionoperations,byallocatingmoreefficientlyincomerecognitionwithrespecttoprojectrisk.
Launch of the Strategic Plan
WeareconvincedthattheonlywaytoremainleadersintheColombianandCentralAmericanfinancialsystemsisthroughconstantevolutionandsettingambitiousgoalsthatbecomeourguidingprinciples.
Wethereforelaunched,inSeptember2018,ourmedium-termstrategicplan,named“Our6Cs”.EachCreferstooneofthepillars(inSpanish)thatwillbecriticalfortheBank’sconstantevolutioninthenextthreeyears:Client(“Cliente”),EmployeesandSociety(“ColaboradoresySociedad”),SustainableGrowth(“CrecimientoSostenible”),AnalyticalCapacityandDigitalTransformation(“CapacidadAnalíticayTransformaciónDigital”),RiskControl(“ControldeRiesgo”),andExpenseControlandOperationalExcellence(“ControldeGastoyExcelenciaOperativa”).
Expense Controland Operational
Excellence
RiskControl
Analytical Capacityand Digital Transformation
Client
EEmployees
Sustainable Growth
and Society
Management Report 2018 Management Report 2018 76
1. Client:Thecentralpillarofourstrategy isourClient,also recognizedas thecenterofourbusinessmodel.Weensurememorableexperiencestowinourcustomers’loyaltyandreferrals.
2. Employees and Society:Wesupportouremployees’growthandwatchovertheirwellbeing,positivelyimpactingsociety.
3. Sustainable Growth:Weexpandourbusinessprofitably, focusingoncapturingnewcus-tomersbycomprehensivelymanagingtheirlifecyclesandtheirmulti-channelexperience.
4. Risk Control:Wecomprehensivelymanagetherisksinherenttothebusiness,maintaininghealthygrowthofourportfolioandstrengthofourbalancesheet.
5. Expense Control and Operational Excellence:Weefficientlycontrolspendingandestab-lishagile,simpleandsecureprocessestoachieveexcellenceinouroperations. 6. Analytical Capacity and Digital Transformation:Wetransformourcustomers’livesbyof-feringdigitalexperiences,applying technology tobusinessprocessesandstrengtheningourcapabilitiesindataanalysis.
Withthedefinitionofthisstrategy,westrivetomaintainourleadershipincommercialbankingandexpandourpresenceinretailbankingthroughenhancedcustomerexperiences,leading-edgedigi-taltools,andcontinuousconsolidationofoperationalexcellenceandriskmanagement.
Commitment with the Bank’s Digital Transformation
Consideringtheimportanceofdigitization,Iwouldliketofocusononeofourstrategiccorporatepillarsinparticular:“AnalyticalCapacityandDigitalTransformation.”Throughthispillar,wedi-rectlyaddressthechallengesoftoday’ssocietyand,bydoingso,createtoolsthataddvalueandrepresentuniquesolutionsthatimprovecustomerexperienceandprocessefficiency.
TheWorld Economic Forumhas referred to our era as the “Fourth Industrial Revolution”,whichhasbroughtaboutthefastestandmostdrasticsocialandeconomicchangeinhistory;thebankingindus-tryhasnotbeenstrangertothistransformation.Digitization,efficiency,timetomarket,apps,FinTechs,Google,Facebookandbotsarewordsthathavetakenoverthebankingvocabularyand,BancodeBogotá,alwaysattheforefrontofthefinancialsysteminColombia,hassuccessfullyundertakenthischallenge.
Ourdigitalstrategyisbasedontwocoreprinciples:providebetterservicetoourcustomers,anddoitinamoreefficientway.Notlongago,achievingthesetwoobjectivessimultaneouslywouldhavebeenunthinkable,butbybuildingupourinternaldigitalcapabilities,todaywearereachingmorecustomerswithbetterservicesandproductsatafractionofthecost.
Undertheseparameters,wehaveundertakenourdigital transformation inColombia,throughthefollowing:
1. Digital sales channel:Weareworkingtomakeallofourretailbankingproductsandservicesavail-ablethroughdigitalchannels,improvingcustomerexperienceand,atthesametime,optimizingprof-itabilityofouroperation.In2018,morethan36%ofsavingaccountsand31%ofcreditcardswereopenedviadigitalchannels.Furthermore,wecontinueconsolidatingourdigitalportfoliobylaunch-ingotherproductssuchasPersonal,PayrollandMortgageLoansthroughourwebsiteandapp.
2. Digital service channel:Nowthatourmobileappandwebsitearethepreferredoptiontocompletetransactions,wehavemorethan1.2millioncustomersusingourdigitalsolutions,rep-resentingaparticipationofourcustomersindigitalchannelsof73.5%.
3. Analytical capacity:Toleverageopportunitiesinthisfieldandcreatevalueforourcustomersandshareholders,weareusingITtoolsandexpertdata-analyststomoveforwardinthedevelop-mentofpredictivemodels-whichallowustoofferpersonalizedservices,therebyimprovingour
valuepropositionandtheexperienceweoffertocustomers-suchastheuseofinformationtoimproveouroperationalefficiency.
OursubsidiaryBACCredomatichasalsobeenmovingaheadindigitaltransformation,withposi-tiveresultsforbusinessesandcustomers inCentralAmerica.Asaresult,wehavebeenabletopositionourserviceportfolioindigitalchannelsandstrengthencommercialrelationships.Mean-while,thepaymentmethodstrategyhasbeenstrengthenedthroughinitiativesgearedtowardspromotionandusageofon-lineproducts,processsimplification,andimproveduserexperienceondigitalplatforms.Bytheendof2018,thereweremorethan1.1millionusers.
Financial Inclusion and Access
Webelieveintheprogressofoursocietyandourcountry.Thatiswhywearecommittedtofurtherpenetrationintheuseofbankingservices(“bancarización”)andfinancialinclusion,sothatmoreandmoreColombianshaveaccesstothebenefitsofthefinancialsystem.
In2018webegangrantingloanstocustomersinruralareas,backedbyguarantees-“RespaldoDCA”-promotedbytheUnitedStatesAgencyforInternationalDevelopment,USAID,thatcover50%ofloantransactions,inmorethan245municipalitiesnationwide.Throughthisguarantee,wehavegrantedmorethan7,100loansworthCOP40billion.Also,throughourmicrofinancemodel,weareservingcustomersinmorethan730municipalitiesand,thankstoourpartnershipwiththeCoffeeGrowersNationalFederation(FederaciónNacionaldeCafeteros),morethan370,000coffeegrowershaveac-cesstothebankingsystemviathe“CoffeeGrower’sSmartCard”(“CédulaCafeteraInteligente”).
WehavealsomovedforwardwithourFinancialEducationprogram,targetedforchildren,youngpeople,adultsandsmallbusinessownersacrossthecountry.In2018,wetrained40,395peoplethroughworkshopsandlivelecturesinourmobileclassrooms. Conclusion
Wehope that the local economy continues along the road to recovery,withgrowth above lastyear’s,andthatinflationremainsundercontrol.Weareoptimisticthattheresurgenceofinternalconsumption, infrastructureprojectsandconstruction, aswell as a strongperformanceofnon-traditionalexportswilldrivethenationaleconomy.
ThesuccessofourstrategyisbasedonourhumantalentatalltheBank’slevels.Withtheirknowl-edge,professionalismandappropriateriskmanagement,theymakeitpossibleforustoachieveourgoalsandobjectives.
TheBankismorepreparedeverydaytoconsolidateandincreaseitsnationalandregionalleader-ship,witharobustbalancesheet,efficientandprofitableresults,andaculturefocusedonconstantevolutionandexcellentcustomerservice.
Ithankeachandeveryoneofyou,ourshareholders,becausewithyourconstantsupportandcon-fidenceinourBank,wewillcontinueofferingfinancialservicesthathelpbuildabettersocietyinallofthecountrieswhereweoperate.
Sincerely,
Alejandro Figueroa JaramilloCEO
Management Report 2018 Management Report 2018 98
Best Bank in Central America andThe Caribbean, 2018.
Best Bank in Costa Rica 2018
Best Bank in Central America 2018,Best Bank in Nicaragua 2018
Digital Innovator Bank of the year 2018 inCentral America and The Caribbean.
Best Bank of the year 2018 – Costa Rica
Best Digital Bank in Costa Rica.Best Digital Bank in Panama.
Best Mobile Bank App in Costa Rica.Best Mobile Bank App in Panama.
Award “Learning readiness, innovation,organizational culture and
digital sustainability”.
Bank with the best reputationin the country, Costa Rica
Inclusive company, Costa Rica Socially responsible company award since 2007to date. 2018 Award, XII edition – Honduras.
Together, we did itTheconfidenceofourcustomersandshareholders,aswellasthehardworkofourem-ployees,earnedusthesehonors.TheyinspireustokeepworkingtosupportthegrowthofColombiansandourcountry.
Best Bank of the year in Colombia 2018 Best Bank in Colombia 2018 Best Foreing Exchange ProvidersAwards 2019
Best Trade Finance ProvidersAwards 2019
Project and Infraestructure�nancing 2018:
Paci�co II Project
Best Economic Research Areain Colombia, Macroeconomic
Aggregates, chosen byindustrial sector
The Green Collectionproduct was rewarded in theSustaniable Finance category
The Bizz Awards – World Confederationof Businesses (WORLDCOB)in the category “Be a legend”
Capital Finance International Award 2018,Excellent governance performance
Global Brands Magazine Award –Best CSR pension fund initiative, 2018
Fiduciaria Bogotá among thebest places to work in 2018.
Number 20 – Category:more than 500 employees.
Derivative market forum“Market dynamizing”
Our subsidiary BAC Credomatic has been recognized as the Best Bank in Central America:
Our subsidiary Porvenir has been recognized as:
Our subsidiary Fidubogotá has been recognized as:
Management Report 2018 Management Report 2018 1110
About the Bank
Presence and
GuatemalaBranches: 208
Bankingcorrespondents: 969
ATMs: 269
El Salvador
Branches: 81
Bankingcorrespondents: 309
ATMs 298
PanamaBranches: 53
Bankingcorrespondents: 788
ATMs: 230
Costa RicaBranches: 125
Bankingcorrespondents: 2,081
ATMs: 545
HondurasBranches: 146
Bankingcorrespondents: 1,419
ATMs: 435
NicaraguaBranches: 129
Bankingcorrespondents: 2,748
ATMs: 285
ColombiaBranches: 701
Bankingcorrespondents: 9,444
ATMs: 1,742
Coverage
TotalBranches: 1,443*
Banking correspondents: 17,758
ATMs: 3,804
United States New York
Miami
*Corresponds to Banco de Bogotá and BAC Credomatic Branches
Chapter 1 • About the Bank Management Report 2018 13
For further details, our shareholders’ information is pub-lishedattheBank’swebsiteandisalsoavailableontheSe-curitiesMarket InformationSystem(SIMEV, for theSpanishoriginal) of the Financial Superintendence of Colombia atwww.superfinanciera.gov.co.
11.3%
11.7%
68.7%
Other companiesSarmiento Angulo Organization
Others
668 7
7%
68 7
%
68
%
68
%%%%%%%%%%
8.3%
PazBautistaGroup
Attheendof2018,wecontinuedtobeoneofthelargestbanksintheColombianandCentralAmericanfinancialsectors.Ourcommitmenttosustainablegrowththatcontributestotheeco-nomicdevelopmentofthecountryaswellasthegrowthofourcustomersandemployeeshelpustostandout.
WehighlighttheevolutionofourMortgage,Micro-creditandConsumerportfolios,whichhasallowedustodiversifyourport-foliooffinancialproducts.Furthermore,theoptimizationofourexpenseshasresultedinanimprovedefficiencyratio.
Wearesettingthebarfordigitalbanking,leadinginnovationinfinancialservicesforthebenefitofourcustomers,andbecom-ingmoreefficientandresponsiveintheprocess.Byincorporat-ingnewprocesses,talentandworkstreams,wehavebeenabletoexpandourdigitalportfolio.
Corporate GovernanceThroughoutourhistory,wehavebeencommittedtoatrans-parentCorporateGovernancemodel thathas evolvedoverour148yearsofexperience,byimplementingbestpractices.Thiscommitmentallowsustoproduceresultsthataresus-tainable for our shareholders, customers, employees andotherstakeholders.
The significant events of 2018 that have strengthened ourGovernancemodelarehighlightedbelow:
1. OnMarch 22, the General Meeting of Shareholders ap-provedtheBoardofDirectorsAppointmentandRemunera-tionPolicy,incompliancewiththecorporateguidelines.
2.AtthesameMeeting,shareholderswereinformedoftheCorporateGovernanceCode,whosereformwasapprovedbythe Board ofDirectors onDecember 5, 2017. The reformsimplementedrecommendationsfromtheCodeofBestBusi-nessPracticesoftheFinancialSuperintendenceofColombia(“CódigoPaís”).
3.We submitted the 2018 Best Business Practices Imple-mentation Report to the Financial Superintendence ofColombia,which continues to reflect theevolutionof the“Código País” recommendations. The report is publishedonourwebsitewww.bancodebogota.com, in the InvestorRelationssection.
4.TheBankComptroller’sOfficereviewedtheCorporateGover-nanceprocesses,consideringaspectsrelatedtotheimplemen-tationof“CódigoPaís”,aswellas thepublicationofRelevantInformation.Thefindingsoftheassessmentshowsatisfactoryperformanceoftheseprocesses,indicatingprogressintheim-plementationofCorporateGovernancestandardsandcompli-ancewiththecontrolsestablishedtoensurethatthemarketisprovidedwithtimelyandtransparentinformation.
General Meeting of ShareholdersAsthehighestgovernancebody,theGeneralMeetingofShare-holdersguidesandoverseestheBank’soperations,aswellastheprinciplesunderwhichthoseoperationsareperformed.
The Bank’s capital as ofDecember 2018was represented byatotalof331,280,555commonsharesheldby11,739share-holders.Themainshareholdersare:
BankAbout the
Board of Directors
Board of Directors
Principal members Alternate Members
Luis Carlos Sarmiento Gutiérrez Jorge Iván Villegas Montoya
Sergio Uribe Arboleda* Sergio Arboleda Casas*
Alfonso de la Espriella Ossio Ana María Cuellar de Jaramillo
Carlos Arcesio Paz Bautista Álvaro Velásquez Cock
José Fernando Isaza Delgado* Carlos Ignacio Jaramillo Jaramillo*
Board of Directors’ Advisor
Luis Carlos Sarmiento Angulo
General Secretary
Alberto Pérez Vélez
Statutory Auditing Firm
KPMG S.A.S.
Represented by:Pedro Ángel Preciado Villarraga T.P.30723-T
Financial Consumer Ombudsman
Octavio Gutiérrez Díaz
*Independent members.
Luis Carlos Sarmiento Gutiérrez, President of the Board and Luis Carlos Sarmiento Angulo, Advisor of the Board.
Chapter 1 • About the Bank Management Report 2018 Chapter 1 • About the Bank Management Report 2018 1514
Jorge Iván Villegas Montoya
PhDinLegalandEconomicSciencesfromUniversidadJaverianawithaSpecializationinBusi-nessLawfromColegioMayorNuestraSeñoradelRosario.HehasbeenanalternatememberofBancodeBogotá’sBoardofDirectorssince1988.HeisalsoamemberoftheBoardofDi-rectorsofCorporaciónFinancieraColombianaandFidubogotá.
Sergio Arboleda Casas
Civil Engineer fromUniversidadde losAndes.HehasbeenanalternatememberofBancodeBogotá’sBoardofDirectorssince1990.HeisalsoamemberoftheBoardofDirectorsofBancodeBogotáS.A.PanamaandCasaEditorialElTiempo.
Ana María Cuéllar de Jaramillo
AccountantfromUniversidadJorgeTadeoLozano.ShehasbeenanalternatememberofBancodeBogotá’sBoardofDirectorsandtheBoardofDirectorsofMegalíneasince2007.She isamemberoftheBoardofDirectorsofBACCredomaticandGrupoAval.
Álvaro Velásquez Cock
PhD in Economic Sciences fromUniversidad de Antioquia,MSc candidate from the LondonSchoolofEconomics.HewasanalternatememberofBancodeBogotá’sBoardofDirectorsfrom1983to1988,andagainsince2001;DirectoratGrupoAvalandCorporaciónFinancieraColombiana.
Carlos Ignacio Jaramillo Jaramillo
Lawyer from Universidad Javeriana, MSc in Insurance Law and Economics from UniversitéCatholiquedeLouvainandPhDinLawfromUniversidaddeSalamanca.Hehasbeenanalter-natememberofBancodeBogotá’sBoardofDirectorssince2018.
Alternate Members
ThedecisionsofourBoardofDirectorsarecontinuouslyalignedwithourinternalcontrolsystem,whichgovernstheperformanceofouroperations.Aspartofitsstructure,theBoardofDirectorshasestablishedaworkplanthatallowsittomeetasoftenasneces-sarytofulfillitsrolesofdirectionandoversight.Todoso,theBoardhascreatedthreesupportingcommittees:CreditCommittee,AuditCommitteeandComprehensiveRiskManagementCommittee,whichoperateunderitsdirectionandsupervision.
In2018,feestotalingCOP885millionwerepaidtothemembersoftheBoardofDirectorsfortheirattendancetoBoardandCom-mitteemeetings.AttheGeneralMeetingofShareholdersheldonMarch22,2018,Mr.CarlosIgnacioJaramillowaselectedasaBoardmemberoftheBank.
InformationontheprofessionalbackgroundofthemembersofBancodeBogotá’sBoardofDirectorsisavailableatwww.banco-debogota.com.
Luis Carlos Sarmiento Gutiérrez
CivilEngineerfromtheUniversityofMiamiandMBAwithemphasisonFinancefromJohnsonGraduateSchoolofManagementofCornellUniversity.HehasbeentheCEOofGrupoAvalsince2000andChairmanofBancodeBogotá’sBoardofDirectorssince2004.
Sergio Uribe Arboleda
EconomistfromUniversidaddelosAndes.HehasbeenaprincipalmemberofBancodeBo-gotá’sBoardofDirectorssince1989andwaspreviouslyanalternatemembersince1987.HeisalsoontheBoardofDirectorsofBancodeBogotáS.A.Panama.
Alfonso de la Espriella Ossio
HestudiedLawandPoliticalSciencesatUniversidadLaGranColombia,CurrencyandBank-ingatTulaneUniversity,NewOrleans,andBankingSupervisionattheFederalReserveBank,BatonRouge.HehasbeenaprincipalmemberofBancodeBogotá’sBoardofDirectorssince1988,andAlmaviva’sBoardofDirectorssince1989.
Carlos Arcesio Paz Bautista
BusinessAdministrator fromUniversidadEafitwithaSpecialization inMarketing fromUni-versidadIcesi-Eafit.PrincipalmemberofBancodeBogotá’sBoardofDirectorssince1990.
José Fernando Isaza Delgado
Electrical Engineer fromUniversidadNacionaldeColombiaandMSc inTheoreticalPhysicsfrom the sameuniversity; BSc andMSc inPureMathematics, both from the Louis PasteurUniversityinStrasbourg,France.HehasbeenaprincipalmemberofBancodeBogotá’sBoardofDirectorssince1997.
Principal Members
Chapter 1 • About the Bank Management Report 2018 Chapter 1 • About the Bank Management Report 2018 1716
Senior ManagementThethirdlevelinourCorporateGovernancestructureisSeniorManagement,whichisresponsibleforperformingdaytodayoperationsandbusiness.Itisalsoresponsibleforthedesign,implementationandfollow-upofourobjectivesandstrategies,inaccordancewiththeguidelinessetbytheBoardofDirectors.
AnoverviewoftheprofessionalbackgroundofourSeniorManagementisavailableatwww.bancodebogota.com.
OurCorporateGovernancestructureisdesignedtoachieveourstrategicobjectives,actingwithinaframeworkthatfollowstheprinciplesofethics,equalityandtransparencyatalltimes.Thus,weaimtomakeapositivecontributiontotheprogressofthemarketsinwhichBancodeBogotáanditssubsidiariesareoperating.
ThemaindocumentsthatcontainourgeneralCorporateGovernancepoliciesare:TheCompanyBylaws,theCorporateGov-ernanceCode,theCodeofEthics,andtheRulesofProceduresfortheAuditCommittee,allofwhichcanbefoundatwww.bancodebogota.com.
General Shareholders’Meeting
Senior Management
Board of Directors
PresidenceAlejandro Figueroa
Jaramillo
General SecretaryAlberto Pérez Vélez
Financial ConsumerOmbudsman Statutory Auditing Firm
Credit Committee
Comprehensive RiskManagement Committee
ManagementCommittee
Executive Vice-presidencyJuan María Robledo Uribe
Financial Control andRegulation Vice-presidency
María Luisa Rojas Giraldo
Chief Financial Of�cerJulio Rojas Sarmiento
Legal ManagementJosé Joaquín Díaz Perilla
Credit and TreasuryRisk Management
Carlos Nieto Martínez
CommercialVice-presidency
for Retail BankingFernando Pineda
Otálora
Corporate BankingVice-presidency Rafael Arango
Calle
Sales ChannelsVice-presidencyJulián Sinisterra
Reyes
International and TreasuryVice-presidency
Germán Salazar Castro
National Directorate ofOperations and Process
Graciela Rey Barbosa
Administrative Vice-presidencyIsabel Cristina Martínez Coral
Credit Vice-presidencyCésar Castellanos Pabón
National Directorate of SystemsÓscar Bernal Quintero
Audit Committee General ComptrollerHerbert Dulce Ospina
Control andCompliance Unit
Luis Bernardo QuevedoQuintero
Business Areas Support Areas
Executives
Alejandro Figueroa Jaramillo
CivilEngineerfromUniversidadNacionaldeColombia,MScinEconomicsfromHarvardUni-versityandcandidateforaPhDinEconomicsatthesameuniversity.EmployedatBancodeBogotásince1973.HeservedasExecutiveVicePresidentandChiefFinancialOfficer.HehasbeentheBank’sCEOsince1988.
Juan María Robledo Uribe
EconomistfromtheUniversidaddelRosario.EmployedatBancodeBogotáformorethan50years.HehasservedasVicePresidentofBankingServicesandVicePresidentofCom-mercialBanking.HehasbeenExecutiveVicePresidentfrom1990to1992,1993to2001andsince2003.
Julio Rojas Sarmiento
Hegraduated fromPrincetonUniversityasaBAwith theSummaCumLaudedistinctionandasanMBAwithhonors:GeorgeF.BakerScholar(Top5%ofhisclass)fromHarvardBusi-nessSchool.PastexperienceatGrupoAvalandGoldmanSachs. JoinedBancodeBogotáin2016asChiefStrategy&DigitalOfficer.HehasbeenChiefFinancialOfficersince2018.
María Luisa Rojas Giraldo
EconomistfromUniversidaddelosAndes,withgraduatestudiesinFinancialAdministra-tionatStanfordUniversityandEconomicDevelopmentatBostonUniversity.EmployedatBancodeBogotásince1981.SheservedasChiefFinancialOfficerfrom1995to2018.SinceMarch2018,sheisFinancialControllerandRegulatoryOfficer.
Germán Salazar Castro
EconomistfromUniversidadJaveriana,withgraduatestudiesinBankCreditandFinanceattheChemicalBankandFinanceatNewYorkUniversity.EmployedatBancodeBogotásince1979.Heheld thepositionofVicePresidentofBancodeBogotáTrustCoNewYorkandPresidentoftheFirstBankoftheAmericas.InternationalandTreasuryVicePresidentfrom1992to1996andsince1998.
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César Castellanos Pabón
Economist from Universidad Santo Tomás and Systems Administrator from PolitécnicoGrancolombiano.EmployedbyBancodeBogotásince2002.HehasbeenCreditVicePresi-dentsince2012.
Isabel Cristina Martínez Coral
ElectronicandTelecommunicationsEngineering fromUniversidaddelCauca,MBAwithem-phasisonFinancefromUniversidaddelosAndes,MScinTelecommunicationsEconomicsfromUNEDandSpecialistinMobileCommunicationsfromUniversidadDistrital.ShejoinedBancodeBogotáastheTransformationDirectorin2017.SheisAdministrativeVicePresidentsince2018.
Fernando Pineda Otálora
Industrial Engineer fromUniversidad Javeriana andMBA from the School of BusinessandManagement,UniversidaddelaSabana.EmployedatBancodeBogotásince1983.HeservedasSMEandPersonalBankingVicePresident.HeiscurrentlyCommercialVicePresidentforRetailBanking.
Julián Sinisterra Reyes
BusinessAdministratorfromUniversidadIcesi.EmployedatBancodeBogotásince2012asCreditCardsVicePresident.HehasbeenSalesChannelsVicePresidentsince2018.
Rafael Arango Calle
Economist from Universidad Javeriana, with Higher Studies in Strategic Management andLeadership fromUniversidaddeLosAndesand theExecutiveDevelopmentProgramof In-alde. EmployedatBancodeBogotá since1999 in theCreditDivisionand theCommercialarea.HehasbeenCorporateBankingVicePresidentsince2012.
Herbert Francisco Dulce Ospina
IndustrialEngineerfromUniversidadJaverianawithgraduatestudiesinCorporateFinanceatCESAandAdvancedFinancialRiskattheLondon-basedIFF-InternationalFacultyofFinance.HehasbeenGeneralComptrollerofBancodeBogotásince2018.
Alberto Pérez Vélez
LawyerfromUniversidaddelRosario.EmployedatBancodeBogotásince1973.HehasbeenGeneralSecretarysince2007.
José Joaquín Díaz Perilla
LawyerfromUniversidaddelRosario.EmployedatBancodeBogotásince1967.HehasbeenLegalDirectorofthefinancialentitysince1974.
Óscar Bernal Quintero
Systems Engineer fromUniversidadDistrital. Graduate studies in E-BusinessManagementfromUniversidaddeSantanderandMBAfromUniversidaddeLosAndes.EmployedatBancodeBogotásince2008.HeiscurrentlyNationalSystemsDirector.
Carlos Fernando Nieto Martínez
IndustrialEngineerfromUniversidaddeLosAndesandMBAfromInaldeBusinessSchool.EmployedatBancodeBogotásince1998.HehasbeenCreditandTreasuryRiskDirectorsince2009.
Luis Bernardo Quevedo Quintero
LawyerandPhilosopherfromUniversidaddeLosAndes.AtBancodeBogotá,hehasheldthepositionsofRegionalComptrollerandHeadoftheSecurityDepartment.EmployedatBancodeBogotásince1981.HeiscurrentlyDirectoroftheComplianceControlUnit.
Graciela Rey Barbosa
IndustrialEngineerfromtheUniversidadDistrital.SpecialistinFinancefromUniversidadEx-ternado and Specialist inOnline Business fromUniversidadde La Sabana andUniversidadIcesi.EmployedatBancodeBogotásince1995.ShecurrentlyholdsthepositionofNationalOperationsDirector.
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Internal AuditThe Bank’s internal audit function is performed through theGeneralComptroller’sOffice,whichprovides an independentassessmentofriskmanagement,controlandgovernancepro-cesses,inaccordancewiththecorporateguidelinesandinstruc-tionsgivenbyGrupoAval,throughrisk-basedaudits.Todoso,wehaveacorporategovernancestructurethatallowsaccesstoallactivitiesandcompaniesthatcompriseit,withnotypeofex-ception;italsocoverstheprimaryoutsourcedservices.
Duringthecourseoftheyear,weconductedon-siteauditvisitstobranchesandcentralareasofhigherrisk,aswellascontinu-ousdistanceassessmentsthereof,basedonpredefinedindica-torsandwarnings,byusingdataanalyticstools.
With regard to the information technologyaudit reviews,wehaveaspecializedteamthatcoversinfrastructure,aswellasap-plications,theirrisksandrelevantbusinessprocesses,includingthosederivedfromnewdigitaltechnologies.
Themain findings of 2018were reported to theAudit Com-mittee,whichmadetherespectiverecommendationsandfol-lowedupontheissuesreported,inordertostrengthenthein-ternalcontrolandriskmanagementsystemsoftheBankanditssubsidiaries,inColombiaandabroad.
Wehavealsobeendevelopingandimplementingstrategiestostandardizestructuresandmethodologies inthesubsidiaries,aswellastoalignourselveswithinternationalauditstandardsandthebestpracticesoftheInstituteofInternalAuditors.
Investor RelationsWearecontinuallyworking to strengthenour relationswithstakeholders.Therefore,wereporttheevolutionandperfor-manceofourbusinessinaclearandtimelymanner,usingthedifferent tools that facilitate interaction with stakeholders,basedontheprincipleoftransparencythatgovernsourCor-porateGovernancestructure.
Wehaveprovidedrelevantinformationinapersonalizedman-nerbythefollowingmeans:
•Conferencecallsonresults:Wereportourresultsonaquar-terlybasis, inordertodisclosetheBank’sfinancialevolutionandprovideanadditionalopportunityforcommunicationbe-tweenexecutives,investors,analystsandstakeholders.
•Website:Ourwebpageprovides linksto informationonInvestor Relations, which serve as a fundamental tool forachievingourobjectives related to transparency in thedis-closureofinformation.
In2018,weheldtwoMeetingsofShareholders,oneordinaryandoneextraordinary,withanaverageattendanceof92%.
AttheOrdinaryGeneralShareholders’MeetingheldonMarch22, 2018,we addressed the items included on the agenda,published in the announcement within the correspondingterms,asfollows:
Review and approval of the 2017Management Report pre-sentedby theBank’sBoardofDirectorsandCEO;presenta-tionoftheInternalControlSystemManagementReport;pre-sentation of the Financial Consumer Ombudsman’s Report;approval of the Unconsolidated and Consolidated Year-endFinancial Statements corresponding to theyear2017,alongwiththeirnotesandotherannexes;presentationoftheStatu-toryAuditor’sopiniononthefinancialstatements;reviewandapprovaloftheEarningsDistributionProject;electionoftheBoardofDirectors;electionoftheStatutoryAuditor;decisiononcompensationfortheBoardofDirectors;decisiononcom-pensation for the Statutory Auditor; additionally, proposalswereapprovedregardingtheappropriationofreserves,dona-tions,BylawsreformandtheBoardofDirectorsAppointmentand Remuneration Policy; in accordance with the agenda,shareholderswerepresentedwiththereformoftheCorporateGovernanceCode,approvedinDecember2017bytheBank’sBoardofDirectors.
At the Extraordinary General Meeting of Shareholders heldonAugust 6, 2018, the followingproposalswere approved,inaccordancewiththeagendapublishedinthemeetingan-nouncement:
1.WaiverofBancodeBogotá’spreemptivesubscriptionrighton Corficolombiana S.A.’s shares, derived from the publicshareofferingaspertheofferingnoticedatedJuly30/2018,publishedbyCorficolombianaS.A.inElTiemponewspaper.
2.MethodologyfortheproportionaltransferofBancodeBo-gotá’spreemptivesubscriptionrightstotheBank’ssharehold-ers,onCorficolombianaS.A.’ssharesderivedfromthepublicshareofferingaspertheofferingnoticedatedJuly30/2018,publishedbyCorficolombianaS.A.inElTiemponewspaper.
3.ReformofArticle21oftheBank’sBylaws.
4.AppointmentoftheFinancialConsumerOmbudsman,theAlternateFinancialConsumerOmbudsmanandallocationofthebudgetfortheFinancialConsumerOmbudsman.
FortheaforementionedMeetings,allthenecessaryinforma-tionfordecision-makingpurposeswasmadeavailabletoourshareholders, as required by regulations on the right to in-spection and the Bank’s CorporateGovernance documents.Becauseofourcommitmenttotransparentandtimelyinfor-mation disclosure, we have maintained the IR Recognitiongrantedby theColombianSecuritiesExchange (BVC),whichstressestheimplementationofbestpracticesrelatedtoinfor-mationdisclosureandinvestorrelations.
Banco de Bogotá and its Subsidiary Group, direct and indirect share
Note: All shares are ordinary
Affiliates in Colombia
Porvenir36.51%
Fiduciaria Bogotá94.99%
Almaviva94.93%
Megalínea94.90%
Associates and JointVentures
Agencies andSubsidiaries AbroadForeign Affiliates
Corficolombiana32.93%
Casa de Bolsa22.80%
ATH19.99%
Sucursal Panamá
46.91%
95.81%
10.40%0.88%
100% 100%
Direct
Indirect
Direct +Indirect
Aval SolucionesDigitales S.A.
38.90%
LeasingBogotáPanamá
(Panama)100%
Banco deBogotáPanamá100%
Ficentro(Panama)49.77%
BogotáFinance
Corp.(Cayman Islands)
100%
BACCredomatic
Inc.
Banco deBogotá
Nassau Ltd.(Bahamas)
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