6 Management Report First Half Jorge Borda Anjel. La Cabrera Customer Branch Bogota D.C. Chapter 1. Our Bank

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1 6 Management Report First Half 2013 Jorge Borda Anjel La Cabrera Customer Branch Bogota D.C. Chapter 1 Our Bank

2 7 We are there at the most important moments of our customers lives. We have designed a comprehensive product and services portfolio that allows us to give solutions to the specific needs of each of our customers.

3 8 Management Report First Half Our Bank Since its foundation in the 1870, Banco de Bogotá has grown to become a part of the everyday life of all Colombians. With its 142 years of experience, the Bank ranks second in the Colombian banking system in terms of assets, which positions it as a major stake- in Colombia. Mission, Vision and Corporate Values The mission, vision and corporate values are the guidelines that manence and evolution of our organization. Therefore, we de- termine our raison d etre through a series of criteria and premises that identify our organization in Colombia and the other countries where we operate. We are a leading Bank that of its customers, its human team, its shareholders and the country. Mission A Bank that is always at the forefront in order to offer our customers quick solutions that allow them a pleasant banking experience. The best support for the growth and progress of its customers, because it values them and is willing and available to advise them, while providing them with a quick, timely, friendly and quality service. shareholders expect. always working towards achieving goals, who are motivated by the pride of belonging to an institution that brings them wellbeing and growth. The Bank, by example and support, proves its commitment to develop and take ownership of its values, generating growth, Vision To be the leading bank in Colombia and Central America that grows with the progress of its customers, human team, shareholders and country.

4 Corporate Values Chapter 1 Our Bank 9 Honesty We act in an ethical and responsible manner so our customers trust us Respect We value ourselves as people and we accept each other because of our integrity Commitment Leadership We identify with our bank and we feel that we are an integral part of its success We work with enthusiasm Efficiency We use resources optimally and intelligently Service Because service is a principle of life for us

5 10 Management Report First Half 2013 Banco de Bogotá, a Regional Bank UNITED STATES NEW YORK MIAMI 11 Countries 15.4 Million customers 37,855 Employees 1,323 Branches 2,827 ATMs COP 87.0 Trillion Assets COP 48.1 Trillion Net Loans COP 55.1 Trillion Deposits COP 755 Billion in Net Profit

6 Chapter 1 Our Bank 11 Corporate Governance One of our main strengths is our Corporate Governance struc- offering high standards in the quality and security of services with activities aligned with ethical principles and excellent management. The decisions of our Board of Directors are designed to manage risk which is carried out through the de- increasingly structured and functional internal and external mechanisms for the Bank. duty to direct and draft the Company s general policies in terms of Corporate Governance, has compiled the following documents into the Banco de Bogotá Corporate Governance Practices : Bylaws, Corporate Governance Code, Code of Ethics and Audit Committee s Rules of Procedure. Banco de Bogotá has the following Corporate Governance Bodies: Governing Bodies: General Shareholders Meeting Administrative Bodies: Board of Directors, Board of Directors Supporting Committees (Audit Committee, Credit Committee, Credit and Treasury Risk Committee, Assets and Liabilities Tech- nical Committee [ALTC]), President, Executive Vice-president and Vice-presidents. Control Mechanisms: Internal Control System and Risk Management Systems (Credit Risk, Liquidity Risk, Market Risk, Operational Risk, and Money Laundering and Terrorist Financing Risk) the Comptroller External Control Bodies: Statutory Auditing Firm, Financial Superintendency of Colombia, Superintendency of Industry and Commerce, Securities Market Self-Regulator, and American authorities for US Banking Agencies (Federal Reserve Bank of New York, Federal Reserve Bank of Atlanta, New York State Banking Corporate Governance Compliance Bodies: General Shareholders Meeting, Board of Directors, President. Based on the above structure, there are a series of regulations and standards managed by the Bank s steering and manage- control framework. Board of Directors PRIMARY LUIS CARLOS SARMIENTO GUTIÉRREZ SERGIO URIBE ARBOLEDA ALFONSO DE LA ESPRIELLA OSSÍO CARLOS ARCESIO PAZ BAUTISTA JOSÉ FERNANDO ISAZA DELGADO ALTERNATE GUILLERMO PERRY RUBIO JORGE IVÁN VILLEGAS MONTOYA ANA MARÍA CUÉLLAR JARAMILLO SERGIO ARBOLEDA CASAS ALVARO VELÁSQUEZ COCK BOARD OF DIRECTORS ADVISOR LUIS CARLOS SARMIENTO ANGULO STATUTORY AUDITOR KPMG LTDA. REPRESENTED BY: MARÍA LIGIA CIFUENTES ZAPATA T.P T FINANCIAL OMBUDSMAN OCTAVIO GUTIÉRREZ DÍAZ

7 12 Management Report First Half 2013 Organizational Structure Banco de Bogotá General Management General Shareholders Meeting Financial Ombudsman Statutory Auditing Firm Secretary General Alberto Pérez V. Board of Directors PRESIDENT Alejandro Figueroa J. Credit Committee Credit and Treasury Risk Committee Audit Committee Assets and Liabilities Technical Committee Financial María Luisa Rojas Executive Juan María Robledo International and Treasury Germán Salazar Legal Management José Joaquín Díaz SME and Personal Banking Fernando Pineda and Social Banking Liliana de Plaza Systems and Operations Jaime Gamboa Credit and Treasury Risk Management Carlos Nieto General Comptroller Gustavo Arturo Peláez Control and Compliance Unit Luis Bernardo Quevedo Corporate Banking Rafael Arango Corporate Solutions Management José L. Borda Credit Cards Julián Sinisterra Leasing Unit Management María C. Pabón Administrative Luis Carlos Moreno Credit César Castellanos Management Control and Support Areas. Business Areas Support Areas

8 Chapter 1 Our Bank 13 Banco de Bogotá and Affiliates. President: Alejandro Figueroa Universal Bank with a wide portfolio of products and services. Presence all across the country. Agencies in Miami, New York and Panama. President: Ernesto Castegnaro Central American Financial Group with banking and credit card operation in all Central American countries. President: Jose Elías Melo Financial Corporation with a wide specialized product portfolio in Private Banking, Investment Banking, Treasury and Equity Securities Investments. Pension and Severance Funds Management. President: Miguel Largacha President: Carlos Zuleta Londoño President: César Prado Villegas Execution of Contracts on Mercantile Trust and Trust Funds. Stock Brokerage Company (brokerage and management of securities funds). President: Daniel H. Gómez General Warehouse, Custom Agent and Integral Logistics Operator. President: Pedro Echeverría A Technical and Administrative Services Company General Manager: Nubia Inés Sanabria General and International license to carry out banking business. General Manager: José Alberto Santana General Manager: María F. Blanco General Manager: Alfonso García General Manager: John Kennedy Entities authorized to carry out Banking Business and Investment Portfolio Management. Attention focused on Banco de Bogotá s corporate and institutional clients, with a full range of services. Sucursal Panamá Panamanian General Licensed entity. Authorized to carry out Banking Business, essentially in the local market.

9 14 Management Report First Half 2013 Banco de Bogotá and Affiliates. Direct and Indirect Share AFFILIATES IN COLOMBIA Direct Indirect Direct + Indirect Corficolombiana 37.90% Casa de Bolsa 22.79% Almaviva 94.92% Fiduciaria Bogotá 94.99% Porvenir 35.28% Megalinea 94.90% 38.95% 46.91% 11.63% 95.81% 61.74% 16.75% AFP Horizonte 64.29% 81.04% FOREIGN AFFILIATES 49.78% 0.88% 99.56% AGENCIES ABROAD Ficentro (Panama) 49.78% Leasing Bogotá Panama (Panama) 100% Banco de Bogotá Finance Corp. (Cayman Islands) 100% Banco de Bogotá Panama 100% 100% 100% BAC Credomatic Inc. (British Virgin Isles) Banco de Bogotá Nassau Ltd. (Bahamas) 100% All shares are ordinary

10 Chapter 1 Our Bank 15 Bank s Main Shareholders June 30, 2013 Other Companies Paz Bautista Sarmiento Angulo Other Group Organization 66.5% 9.6% 11.7% 12.2% The Code of Ethics sets out the values and principles guiding executives and employees daily activities. Formal determination of senior management on the basic principles that govern the institution as set forth in the Corporate Governance Code and the various internal regulations, manuals and standards published in full and available to all employees at the Bank s intranet. Procedures that enable employees at all levels in the organization to have the knowledge, skills, attitudes and values necessary to perform their duties within an effective internal control framework. Ethical Commitment Ethics and transparency are achieved through elements of our organizational culture. With them, we promote principles, values and behavior in our employees to achieve this ideal. These initiatives are based on good governance, and their pur- sources we manage. These initiatives are implemented through: objectives. Both the Corporate Governance Code and the Code of Ethics are published on the Bank s web page: Our Social Responsibility Policy Pursuant to the guidelines in our social responsibility policy, we continue developing our management in response to economic, social, human and environmental dimensions we established to ensure the sustainability of our business. objectives, taking advantage of our knowledge, strengths, solid-

11 16 Management Report First Half 2013 Objective How do we achieve it? ECONOMIC dimension SOCIAL dimension HUMAN dimension ENVIRONMENTAL dimension Continue to grow, generating manner. Contribute to sustainable development and a better quality of life in our country Promote the individual and collective development of our employees and suppliers Reduce and minimize the environmental impact our operations and our employees generate in business economic value and channels and protection system education and advice developing business children, youth and population without access to the banking system technological platform to serve humanitarian causes (Telethon) thousands of Colombians through donations and sponsorships our employees through volunteering. skills in employees our suppliers in our employees reduce environmental impact

12 Chapter 1 Our Bank 17 Recognition of Our Work In 2013, as a result of the commitment and work of our employees, and the trust of our customers, we continued to receive recognition that drive us to continue generating value for our various stakeholders in the countries in which we operate. Euromoney: Banco de Bogotá, Best Bank in Colombia in 2012 In July 2013, Euromoney magazine awarded Banco de Bogotá with the title Best Bank in Colombia for the Euromoney Awards for Excellence Banco de Bogotá received this award for the sixth time from one of the results in Likewise, it underscored its low cost of funds, competitive strengths in the markets in which it operates. Finally, Euromoney highlighted the Bank s solid international reputation, demonstrated by the successful issuance in February 2013 of subordinated bonds in the amount of USD 500 million on the international market, and which received orders for USD 3,500 million. Porvenir: First Place in Brand Recognition and Publicity in the Pensions and Severance Funds Category Bogota, May 2013 According to a Brand Tracking study carried out by Corporación brand reputation and publicity in the pension and severance funds in brand preference with 23.6% for the same month. Almaviva: Recognition of Kellogg de Colombia S.A. Bogota, April 2013 Kellogg de Colombia S.A. recognized Almaviva S.A. as an international-standard provider for complying with the requested levels to be accepted as an international provider of raw materials. This arose from services provided to this client at the Almaviva Villavicencio facilities. BAC CREDOMATIC: Beyond Banking Award Costa Rica, May 5, 2013 The BAC Credomatic Network Public-Private Alliance Program for youth financial education in Costa Rica was selected as the winner, in the third Inter-American Development Bank (IDB) beyondbanking awards in the Learn Banking category. The Award was given by IDB President, Luis Alberto Moreno, as part of the 2013 Annual IDB Conference. Neutral C-Rating from the Ministry of Environment and Energy (MINAE in its Spanish acronym) Costa Rica, March 2013 BAC Credomatic Costa Rica was rated C-Neutral by the Ministry of entity in Costa Rica to take responsibility for compensating all of the tons of Greenhouse Gases generated by its operation. With the seeks Carbon Neutrality for the nation by Global Finance Award Best Bank in Costa Rica Costa Rica, May 2013 Global Finance selected BAC San José as the Best Bank in Costa Rica in the 20th survey, which included the best banks from 136 countries and 8 regions of the world. The publication indicated that its receipt of the best local rating from Standard and Poor s, AAA, underscored the holding company s good position (BAC International) as well as adequate capitalization, portfolio quality, brand strength and regional presence. Honduras Foundation Award for Social Responsibility Honduras, June 2013 In June, our BAC Honduras operation received the Socially Responsible Seal from the Honduras Foundation for Social Responsibility for the seventh consecutive year.

13 18 Management Report First Half 2013 Our Ratings On June 30, 2013, Banco de Bogotá s major instruments were rated investment grade by three highly important international rating agencies (Moody s Investor Services, Fitch Ratings and Standard & Poor s) and the local BRC Investor Services agency, as shown below: : International Ratings Local Ratings Issuer Feb-13 Outlook Jul-13 Outlook Apr-13 Outlook Dec-12 Long Term Foreign currency Baa3 Stable BBB Stable BBB- Stable Short Term Foreign currency P-3 Stable F2 A-3 Long Term Local currency Baa1 Stable BBB Stable BBB- Stable AAA Short Term Local currency P-2 Stable F2 A-3 BRC1+ Financial Strength C- Stable Bonds Feb-13 Outlook Jul-13 Outlook Aug-12 Outlook Dec-12 Subordinated Bonds - Second Issue 2008 Multiple and Successive Issues - Subordinated Bonds 2010 Ordinary bonds in Dollars (Maturity 2017) Subordinated Bonds in Dollars (Maturity 2023) Baa2 Stable BBB Stable BBB- Stable Baa3 Stable BBB- Stable AA+ AA+ *All ratings are investment grade. From the analysis carried out by the various ratings agencies, the following stands out for Banco de Bogotá: a relatively low expose to sovereign risk and low dependence on market funding, allowed the Bank a moderate credit risk (Baa2) rating, one notch above the Colombian government s credit rating (Baa3). ratings, in accordance with the rating and outlook revisions for the Colombian government. and Banco de Bogotá s acquisition of the Grupo Reformador, which was obtained through Credomatic International Corporation. affected by the transaction.

14 Capítulo 1 Nuestro Banco 19 In my family, we all trust in Banco de Bogotá I fully enjoy the benefits of being a Banco de Bogotá customer every time I go to the La Cabrera branch. The experience there is exceptional; the personalized service, modern branches and, most importantly, the guidance they have given me in all my personal and professional needs. My mother has been a customer for more than 15 years and in my family, we all trust in Banco de Bogotá. Jorge Borda Anjel, La Cabrera Customer Branch