Grupo Cibest SA (CIB) 2013 Q4 法說會逐字稿

Good day, ladies and gentlemen, and welcome to Bancolombia's fourth-quarter 2013 earnings conference call. My name is Adriana and I will be your coordinator for today. At this time, all participants are in a listen-only mode. Following the prepared remarks, there will be a question-and-answer session. (Operator Instructions).

Please note that this conference call will include forward-looking statements including statements related to our future performance, capital position, credit-related expenses and credit losses. All forward-looking statements whether made in this conference call in future filings and press releases or verbally address matters that involve risk and uncertainty.

Consequently there are factors that could cause actual results to differ materially from those indicated in such statements including changes in general economic and business conditions; changes in currency exchange rates and interest rates; introduction of competing products by other companies; lack of acceptance of new products or services by our targeted clients; changes in business strategy and various other factors that we describe in our reports filed with the SEC.

With us today is Juan Carlos Mora, Chief Operating Officer; Mr. Jaime Valasquez, Chief of Strategy and Financial Officer; Mr. Jose Acosta, Chief Financial Officer; Rodrigo Prieto, Chief Risk Officer; and Alejandro Mejia, Investor Relations Manager.

I would now like to turn the presentation over to Mr. Acosta, Chief Financial Officer of Bancolombia. Please proceed, sir.

Thank you. Good morning everyone and welcome to our fourth-quarter 2013 results conference call. It is a great pleasure to be with all of you.

Let us start with a brief discussion of the main topics that impacted our business in this period. You can follow the slide presentation available in our investor relations website.

First, I want to open this conference call highlighting the successful capital raise that we just completed last week. As you probably know, Bancolombia issued 110 million preferred shares at a price of COP24,200 raising COP2.7 trillion or the equivalent to $1.3 billion.

The demand was strong, 2.7 times oversubscribed and the appetite from local and international investors in both retail and institutional (inaudible) was surprisingly solid. With this fresh capital plus a portion of earnings that was reinvested and prepared by shareholders in the general meeting held yesterday, the pro forma Tier 1 ratio as of December 2013 was 9.2% and the total capital ratio was 14%.

Breakdown of this increasing capital is as follows. Because of the earnings reinvested, we will increase our capital Tier 1 ratio 2.51% and because of the earnings reinvested, we will increase 0.86%. These ratios put us in the optimal capital position that we wanted to have which is between 8% to 9%.

In a country like Colombia where regulations regarding allowances and provisions are very strict and balance sheets do not contain (inaudible) assets, this range of Tier 1 is more than enough to operate. Therefore, we believe we are more than fine to continue growing organically for the next three or four years as we forecast growth of assets at are around 15% per year and an increase in our dividends of around inflation plus 1% or 2% per year.

The transition of Banistmo in Panama is going as planned putting special emphasis in the implementation of its own IT systems and processes. The Bank has completed important milestones such as the rebranding, the definition of the management level and the completion of the legal integration. The numbers that we are discussing today already include the Banistmo assets and the results of November and December last year.

After the integration of Banistmo and this capital raise, we are focusing our efforts in becoming a more efficient organization. We are operating in the countries that we want it to be, Colombia as our core markets, El Salvador, Guatemala and Panama.

Now we are entering in the process of optimizing all these operations aiming a higher level of profitability. After completing these acquisitions and capital raise, Bancolombia has a diversified asset portfolio in terms of currency and geography. 82% of our total assets are now denominated in US dollars and about 30% are in Central America. We believe that this mix, 70% Colombia and 30% abroad is an optimal combination [that will meet] risk diversification while growing in the most attractive economies in Colombia and Central America.

Over the next couple of years, Bancolombia will be focused on efficiency, trying to take advantage of the business that we have in Central America and Colombia and doing all the things required to achieve higher levels of profitability.

Last but not least, I would like to present the results for the year 2013. During the year, Bancolombia generated COP1.5 trillion which represents a return on equity of 12.7%. 2013 was a year with uncertainties in the international and local markets. The tapering announcement in May had a negative effect in debt securities across the globe and Bancolombia was impacted by that. Excluding that effect, the performance of the Bank was in line with our expectations -- healthy organic growth, the completion of the Banistmo and Panama acquisition, a solid balance sheet and a high level of coverage ratio and a consolidation of leading competitive positions narrowly in Colombia and also in the other countries we are in right now.

Bancolombia gained 2% of market share over the last 18 months. All of those factors lead us to believe that 2014 will be a year of value generation and a successful strategic implementation.

Having said this, we would like to continue with a brief discussion about the economic environment. Let me turn the presentation to Juan Carlos Mora, our Chief Operating Officer, who will share our views on this model. After Juan, we will elaborate more on the Bank's results. Juan?

Thank you, Jose. Good morning, everyone. For those of you following the slide presentation, I ask you to go to slide number three.

Let's start with some macroeconomic figures. Inflation for the 12 months ended February 2014 was 2.3%, at the low end of the Central Bank range of 2% to 4%. The Colombian Central Bank's repo rate remained stable at 3.25% which is low for Colombian standards and we believe it will remain at that level at least for the first half of the year.

Towards the second half we could start seeing some tightening and rates could increase 1 or 2 times, 25 basis points each to end the year around 3.75%. This low rate environment has caused the decline of the main benchmark rate in the Colombian market, the DPS which we mainly use to price our variable rate loans. This decline has put some pressure on MIMs but this effect has been partially offset by a fundamental strategy focused on reducing the cost of deposits.

Regarding the FX, the Colombian peso experienced a depreciation of 6.6% during the first two months of 2014 and 11.5% over the last year and ended February in an exchange rate of COP2055 Colombian per dollar. The Colombian monetary authorities have expressed its satisfaction with this exchange rate as it is favorable for exports and reduces risks of Dutch disease, another negative impacts generated by the strong peso. It is worth mentioning the currency match of (inaudible) and liability in Bancolombia's balance sheet which basically eliminates impacts of FX variations.

Regarding GDP growth in Colombia, the Central Bank is expecting a 4.3% expansion during 2014, slightly above the 4.1% expected for 2013. We share that view and estimate that the second half of this year should be more dynamic as the level of spending of the Colombian government picks up as well as households demand more goods.

We continue seeing a stable level of indebtedness of households and a sustained improvement of the credit quality across the financial system. That trend reduces the risk of higher loans, deterioration and provision charges. Consumption remains healthy and unemployment dropped to 11.1% as of February, 1% less than the figure we saw the same month one year ago.

All these trends lead us to believe that Colombia's GDP is stronger this year as compared to 2013 and this will permit our business to continue expanding at a nice pace.

Let me turn the presentation back to Jose Humberto.

Thank you, Juan. On slide 4, we see the evolution of assets and fixed composition. The proportion of loans as a percentage of the total assets remains almost flat at 65% but we reduced the size and proportion of the securities portfolio. After the events of 2Q 2013, we decided to reduce the volatility, the size of the portfolio and the duration of the debt securities portfolio in order to prevent negative impact in the Bank's results.

The growth of the loan portfolio moderated during the quarter. The growth of the loans denominated in pesos was 14.5% year on year and 1.3% during the quarter. These figures indicate that moderation in the pace of expansion of the portfolio as we expected.

Nevertheless, the overall growth experienced during the quarter is mostly explained by the consolidation of Banistmo in October. That event caused the loan portfolio to grow 14.6% year on year. Of course, these new assets from Banistmo are denominated in US dollars so the percentage of total assets denominated in this currency ended at 32% of the total assets. We believe the combination of currencies and geographies that Bancolombia has today are roughly 70% Colombian and 30% (inaudible) is optimal as we've reduced this concentration risk and is still (inaudible) to capture growth opportunities in the regions where we operate.

It is remarkable the contribution of Banistmo to the mortgage portfolio. We went from representing 9% in September to 11.5% in December. In 2014, we forecast to grow the loan portfolio between 10% to 15% and we forecast to maintain the same structure of the loan portfolio in terms of segments.

Slide number 5 shows the evolution of provision charges which was COP273 billion during the quarter. It was 1.3% of the average gross loans when analyzed which is a very low ratio. This was the product of a low loan deterioration during the quarter.

In the shaded row of the table at the bottom, we present the amount of loans that became past-due during the quarter. The COP775 billion was abnormally high and includes the loans from Banistmo that are considered past due we measure by the stricter Colombian regulation which uses the 30-day threshold for considering a loan past due. Those loans accounted for COP556 billion out of the COP775 billion.

The remaining portion which means the COP219 billion was the actual deterioration of the portfolio excluding the Banistmo impact. This amount was relatively low and stable compared with the previous quarter.

The highlight here is that the main deterioration was basically mostly explained by the acquisition of Banistmo and because of the loans that comes from Banistmo. The vintages originated in 2013 present today a very good performance as a result of a strict credit underwriting standards. We feel very comfortable with the evolution of the loan portfolio and forecast to have provision charges of around 1.5% of those loans during 2014.

Now on slide 6, we present a snapshot of the credit quality end of the quarter. Deposit loans to total loans ended the year at 2.9%, slightly above the 2.7% of September because of the Banistmo loans that are considered past due under the Colombian standards. The coverage ratio ended at 156% declining against the 175% of September again due to the Banistmo loans.

In general terms, we see the portfolio with a healthy quality, well covered by allowances and with quality loans under control. It is remarkable the fact that 90 days past-due loans remain flat at a level of 1.5% as compared to the same metric in September. We forecast to have 30-day coverage ratio of at around 150% in the medium-term. We believe that is more than enough to absorb potential credit losses that the Bank will eventually have similarly. Past-due loans should represent 2.5% of gross loans.

Moving on to slide number 7, we see the evolution of the NII and funding cost and composition. NII for 4Q 2013 was COP1.34 trillion, 18% above the 3Q 2013 period. This growth is explained by higher volumes of loans during the quarter and the contribution of Banistmo which was incorporated again in October.

The securities portfolio reached a positive NII contribution of COP8 billion during the quarter. The duration of the securities portfolio ended at 15 months and the [deal] to maturity ended at 4.1%.

The reduction of funding costs, 93 basis points during the year, was one of the main strategies of the Bank. With more liquidity in the market and lower pace of growth, we were able to increase the proportion of checking and savings accounts and reduced the proportion of more expensive funding sources such as long-term debt and time deposits.

Slide number 8 shows the evolution of the net interest margin. The net interest margin from loans ended at 6% in 2013, slightly below the 6.2% at the end of the third quarter of 2013. This reduction is mainly explained by the incorporation of Banistmo loans which are denominated in US dollars and have a lower NIM.

You have to take in consideration that the NIMs for the operation in Banistmo it is currently at around 3.6%, 3.8%. We forecast an ending net interest margin to be between 6% to 6.2% for this year 2014. The securities NIM was 0.1% as it continues normalizing and moves towards our estimation of 1%.

Fees are presented in slide number 9. The seasonal effect on the integration of Banistmo contributed to our 14% growth during the quarter, and net fees were COP525 billion. In particular, credit and debit card fees grew very well during the quarter due to the holiday season.

Bancolombia has been focusing offering products to clients that generate fees. A good example is the bank assurance business where Bancolombia distributes insurance policies and receives recognition for that. Just last year we generated around COP200 billion from that service.

On slide 10, we present the evolution of expenses which grew 6% during the quarter. This quarterly growth is totally explained by the Banistmo integration as cost of the Banistmo operations actually decreased in the quarter. The cost to income ratio was 58.4% during the quarter.

On the bottom right-hand side, we see how OpEx to total assets came down during the year. Bancolombia has been able to grow assets faster than expenses. Our efforts right now are focused on improving the efficiency of the bank. Revenue should grow faster than expenses and the main drivers will grow -- post growth -- headcount and branch network expansion are very stable. Our goal is to perform a bigger number of transactions through electronic and low-cost channels such as mobile banking and aging.

Moving on to slide 11, we see the evolution of the net loans to deposit ratio which declined during the quarter. We have been focusing growing deposits faster than assets and are still reducing the cost of those deposits. Also Banistmo which have more deposits than loans contributed to the reduction in the net loan to deposit ratio. In the last two years, the Bank has been focused trying to increase our deposit base. As a result of that right now our loan to deposit ratio is below 100%.

During 2014, these metrics should range between 90% and 100% loan to deposit ratio. At the bottom right-hand side we present the current capital adequacy ratio at the end of the year. The Tier 1 ended at 5.8% lower than the 10.1% at the end of September. This decrease is explained by the Banistmo consolidation and the acquisition of Banco (inaudible).

Nevertheless with the capital raise that we completed and the portion of earnings that was of a period by shareholders yesterday, the Tier 1 ratio will look like 9.2% as of December.

I want to go back with the previous numbers that I gave at the beginning of this speech and the breakdown of how we will increase the capital (inaudible) because of earnings reinvested, we will increase the Tier 1 of 0.86% and because of the capital raise, we increased our Tier 1 (inaudible). That is after our [refi] and we want to do.

The 9.2% of Tier 1 is well above the minimum required to operate in Colombia which is 4.5% and puts us in a comfortable situation of equilibrium between the strength of the balance sheet and return of the shareholders. We estimate that the optimal level of Tier 1 for us to operate in countries where we operate is 8% to 9% and that this is exactly the range amount we are right now.

Slide number 12 shows a return on assets and return on equity of the Bank. Return on assets continued improving as we were able to grow net income faster than assets and mitigate some of the volatility that impacted in 2Q 2013. Similarly, return on equity improved during the 4Q and ended at the level of 16%. Considering the capital raise and our forecast for 2014, we are expecting a return on equity at around 14% for this year.

After presenting these slides with the fourth-quarter numbers to you, I would just like to highlight where we stand today and our plans for the near future.

We had a very good year in 2013, Bancolombia grew 34% it's assets and completed a very important acquisition. We raised capital in a very successful way raising $1.3 billion. Additionally, we put the balance sheet in optimal shape for the future and now we have turned the page to enter in a cycle of efficiency and improvement in returns.

Having said this, we are happy to take any questions that you may have.

(Operator Instructions). Thiago Batista.

I have one question. First of all, thanks for the opportunity. But I have one question about the mortgage. I always thought that Bancolombia reported a really strong growth in the mortgage segment in Colombia during last year. Looking to the mortgage on a (inaudible) basis, it went up almost 30% year-over-year. Could you give us your expectation for this segment, for this year in terms of margins, the (inaudible) and also potential growth?

Thank you, Thiago. Yes, in Banistmo operation only one-third of the assets are mortgage loans. In the Colombia as you remark, we do 30% last year. We are expecting to maintain our growth at around 15% to 20% the next coming years. Right now because of the increasing of the funding costs, we want to maintain a cautious position in that matter in that kind of business.

The delinquency level remains under control. The past-due loans for 90 days for mortgage is around 2.5%, 2.3% so it is under control. And the profitability there, we are lending on interest rates at around 11.5% to 12% and the funding cost of that kind of operation is at are around 6% to 7%. So the margin in that kind of product is at around 5%.

Saul Martinez, JPMorgan.

Thank you. Hi, good morning. A couple of questions. First, can you give us a little bit more color on what you think Banistmo's earnings power is. I think one of the complaints that I get from investors is the lack of disclosure as to what the financials look like for Banistmo with the entity being consolidated and obviously there were a lot of moving parts in the numbers last year.

But can you give us a sense for what your expectations are for the earnings contribution from Banistmo and whether there are risks in terms of implementation of technology, instituting your systems and bringing Banistmo over to Colombian GAAP provisioning requirements whether that will have a negative effect on their provisioning load? So just a little bit more color on where you think that will go.

Secondly, your ROE guidance of 14%, I want to clarify. Is that for the full-year for 2014 or is that the run rate you expect to get by year-end because obviously the capital raise implies that you are going to get diluted in terms of return on equity. On our numbers your ROE is closer to 12.5% to 13% initially after the deal. So it implies if it is for full-year, it implies that you expect ROEs and earnings to really increase substantially during the course of the year.

I want to just clarify whether that is a full-year guidance number or whether that is your expectation for where you get to in terms of run rates by year-end 2014?

Thank you, Saul. I will begin the answer with the second question. Yes, we are expecting for the whole year to reach the 14% which is challenging because you have to take into consideration the capital raise but it is for the whole year. Regarding your first question (multiple speakers)

You expect a good year then. Okay.

Yes, yes. We have high expectations about it.

Regarding the first question, Banistmo, it is a long-term acquisition so we are expecting in the first two years we will increase in line with the same banking industry in Panama which will be at around 10%. The next 18 months will be at consolidation for us because as you mentioned, we have a big challenge there regarding IT.

Banistmo accounts 12% of our total assets and 13% of our total deposits. That would imply that at the end of the year we are expecting to receive from them around $100 million of profits at the end of 2014. But we obviously, we are expecting for the next three to five years to gain market share and to consolidate the operations there. In terms of the schedule of integration requirements --?

Saul, It is Juan Mora. Let me give you some details about how the process of changing or improving the technology in Banistmo is going.

As you know, we started this process February last year and so we started with the process that was mentioned by Jose Humberto during his presentation and that went very well. We started changing the technology to become Banistmo's technology and then in October 28, last year we took control of the bank and started a new process of replacing some of the main applications.

As you probably know, we are under a TSA agreement with HSBC at this moment and we have been re-appropriating and changing some of the systems. Everything is on schedule, everything is going well, we have been [replacing] some of the applications on the systems now and we expect to finish that process by mid next year without any inconvenient or affecting any of the operations of the bank.

So that process is going well. We have the projects in place, they are on schedule and we are very happy with the results of that process.

Actually that is very helpful. Thank you. Just a clarification, Jose Humberto, COP100 million of earnings for 2014, I assume that is gross of the amortization on the transaction, correct?

No, it is only the net profit that comes from Panama. We have to take account and X out the amortization of the goodwill here in Colombia.

So if you factor in the goodwill, it is something like 40 million or something to that effect?

At around, right.

Thanks so much.

Frederic de Mariz, UBS.

Good morning, everyone. Thank you for the call. A few quick questions on my end. The first one on the efficiency and the second one on the acquisition.

On the first one, you touched upon your objective to improve your cost to income ratio which was [58%] last year and you mentioned this would come from higher income but also from lower OpEx or OpEx control I should say. Can you give a bit more color or maybe a few examples on what you can do on the OpEx side and also maybe try to quantify where the cost to income ratio would go in the next few years. That was the first question.

The second one, acquisition you mentioned already quite a bit about Banistmo which is a very exciting obviously acquisition for you guys. What do you see in terms of missing assets for you either in Central America or in other countries? In other words, do you see anything else that would be interesting to add to your portfolio or do you expect the next two, three years to focused exclusively on what you already have in house? Thank you.

Thank you, Frederick. Regarding the second question, acquisition, if you check our track record we are doing big operations every five to seven years. That implies that the next three years as you mentioned, we will focus on the acquisition of Banistmo because we have a very tough schedule to comply.

So we are not expecting any important acquisitions for the next three years. We will be focused try to improve the operation in Panama and take advantage of the momentum of the economy in Colombia.

Regarding your first question, efficiency level. Yes, our target is to go back to the level of 50% the next three to four years and that would be because of a combination of factors. First, if you take the growth of expenses in Colombia in our Bank, we have been growing at a pace of 6%, 7%. On a consolidated basis, we are growing at a pace of 8.5%. That reflects that we are having the cost control. We are increasing our level of income so as a result of that, we expect this year cost to income ratio to get at around 53%, 54%.

Okay, that is very clear. Thank you.

(Operator Instructions). (inaudible) Compass Group

Good morning. I wanted to ask a couple of questions. The first one is what to expect going forward in asset quality given that you exclude Banistmo, the numbers actually improved? And the second one is in line with what I will ask but just talking about loan growth for this year, that 15% you mentioned is with Banistmo or is on top of Banistmo?

Thank you, David. Regarding the asset quality as you can see on the slide, we have the vintage under control we believe and we will maintain deposit loans at around 3%, coverage around 150% and cost of credit would be at around 1.5%. So we are not perceiving the deterioration of the loan portfolio in the next coming quarters and we are seeing also a lower pace of growth in the banking industry as a whole. So we are not expecting a major change or a mega deterioration regarding the quality of the loan portfolio.

Regarding the low growth, the breakdown is as follows. We are expecting to grow 10% to 15% in Colombia, at around 10% in Panama, and at around 3% in El Salvador. With a combination of that we are expecting loan growth as a group 13% to 15% this year.

Thank you very much.

[Christian Fernandez], (inaudible).

Thank you, guys. Congratulations on the conference call on the results actually. Was wondering what do you guys expect from competition for the future years especially in Panama and Colombia?

And also my second question would be how do you guys feel about the name within this year especially when we are all expecting an increase in the repo rate of about 100 point basis in Colombia how should it effect it -- should it go higher or should it keep lowering according to the competition in Colombia? Thank you, guys.

Thank you, Christian. Regarding competition, yes, in Colombia the competition will be very interesting as I mentioned. But the thing is the growth in the local market it is important so we need another competitors to participate with this momentum of the economy. So for us, we will be very interested in the participation of the Brazilians and the Canadians here in Colombia because we have to observe part of this growth with the other colleagues.

In Panama, the competition is very important but right now we believe and we are convinced we can gain market share because of the quality of the service that we are providing and we want to provide. And second, because of the risk appetite that we will have in Panama that was a little bit different that we used to have in the last three years.

Regarding the NIM, yes, we believe that the NIM will increase a little bit because of several reasons. As you mentioned, maybe the interest rate will go up 100 bps. Remember that for every single 100 bps that the interest rate goes up, our NIM will increase 8 to 9 basis points. But also because right now we have it completely under control. Remember last year we had $2 billion in cash. Right now we used that cash with the acquisition of the operation in Panama and we are reducing the funding costs. So because of the combination of these factors, we believe that we can increase -- we are able to increase at least 10 bps or 20 bps more our net interest margin.

At least what?

20 bps, 10 basis points to 20 basis points the net interest margin.

Great. So do you guys think the competition will remain on interest rates particularly in the corporate segment or should it translate to a competition commissions?

That would be on the corporate side for sure.

Especially because of the construction dynamic in Colombia, right?

Yes, but that dynamic as you mentioned, you see the numbers at the end of next year. The process here in Colombia, it is a very low pace in terms of infrastructure so we don't expect a major increase of volumes or transaction at least 2014. We expect maybe in 2015.

All right. Thank you very much.

Alonso Aramburu, BTG.

Good morning. Thank you for the call. Just following up on the NIM, just wanted to clarify is your assumption of 10 to 20 basis points increase, does that include a 100 basis point increase in the reference rate this year? And also did you mention, what do you expect in terms of how your mix of loans are going to grow this year and how that affects the NIM as well?

We are expecting in our calculations the interest rates will go up 25 basis points in the third quarter and another 25 basis points in the fourth quarter so we are modeling our NIM based on the assumption that the interest rates will only increase 50 basis points and would you remind me please the second question?

What kind of effect do you expect on the NIM from the changing mix of your portfolio given especially that you are growing faster in mortgages?

Yes. We are not expecting a major change in our composition of the loan portfolio. The big change was because of the acquisition of Banistmo. Previously the acquisition of Banistmo mortgage in our books accounted for 8% of our total loans. Right now it is 11.5%. So we are not expecting our loans to increase that composition into our loan portfolio.

Fantastic.

So we want to maintain the same composition regarding corporate versus SME and retail.

Okay. Thank you.

Jose (inaudible) (technical difficulty).

Thank you. Good morning, everybody, and congratulations for the results. I have one question regarding Banistmo. So far you have been operating for about for two months so for almost four months, so which are the synergies that you are seeing right now after you actually are operating in the bank would be my first question.

And the second, I am very curious about the development of the mortgages in Colombia. What happened in Colombia who actually is leading that growth in mortgages not only for you for the whole sector?

Thank you, Jose. Regarding the Banistmo, we are seeing in Banistmo a big opportunity to develop on the asset side regarding corporate because there are a lot of Colombian companies there so we believe that we can attain our Colombian clients in Banistmo. Also the level of service in Panama, we can improve that because it is if I may say very poor. So we want to represent the same experience that we have been Colombia offering the best in class service on the retail business. We want to do exactly the same in Panama gaining some market share.

So at the end of the day, the synergies is because we see a potential of growth in both sides on the corporate side and also on the retail side.

Regarding the mortgage market, as you said, today there will be a slight correction of the price of the mortgage market because of the correction of the pace that happened at the end of the first half of last year so we are not expecting to be aggressive in the market. You will see a correction of the old banking system regarding the mortgage so you probably will see a different price for the next coming quarters in the Colombian market.

Okay, thank you.

(inaudible) Credicorp Capital.

Good morning. Thanks for hosting this call. I want to know what could we expect in terms of bond issuance for this year in order to fund the strong increase seen in long-term loans such as mortgages? Thank you.

As you have probably see in our numbers, we have been very focused to increase our deposit base so that means that we are not expecting a huge activity of the bond market from Bancolombia in Colombia operations. But maybe for the next coming years, we do probably hear from our operations in Panama because Panama offers us a unique opportunity to get better funding costs approaching the international markets.

So at least during this year you don't expect from us coming into international markets from Colombia -- from the Colombia operation.

Okay, thank you.

We have no further questions at this time. Gentlemen, do you have any final remarks?

Okay, thank you everyone for the participation. Hope to see you soon in the next conference call that will take place in the next coming weeks in May to announce the first-quarter results. Thank you again.

Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.