Grupo Aval Acciones Y Valores S.A 6-K, filed Nov 16, 2023
Grupo Aval Acciones Y Valores S.A. (AVAL)
About this 6-K
Grupo Aval Acciones Y Valores S.A filed this 6-K on November 16, 2023.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report Of Foreign Private Issuer
Pursuant To Rule 13a-16 Or 15d-16 Of
The Securities Exchange Act Of 1934
For the month of November 2023
Commission File Number: 001-36631
Grupo Aval Acciones y Valores S.A.
(Exact name of registrant as specified in its charter)
Carrera 13 No. 26A - 47
Bogotá D.C., Colombia
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
| Form 20-F |
X |
Form 40-F |
GRUPO AVAL ACCIONES Y VALORES S.A.
TABLE OF CONTENTS
| ITEM | |
| 1. | Report of Third Quarter 2023 Consolidated Results |
Item 1
Grupo Aval Acciones y Valores S.A. (“Grupo Aval”) is an issuer of securities in Colombia and in the United States (“SEC”). As such, it is subject to compliance with securities regulation in Colombia and applicable U.S. securities regulation. Grupo Aval is also subject to the inspection and supervision of Financial Superintendence of Colombia as holding company of the Aval financial conglomerate.
The consolidated financial information included in this document is presented in accordance with IFRS as currently issued by the IASB. Details of the calculations of non-IFRS measures such as ROAA and ROAE, among others, are explained when required in this report.
Banco de Bogotá executed a spin-off of a 75% equity stake in BAC Holding International Corp (“BHI”); to its shareholders and Grupo Aval subsequently spin-off its equity interest to its shareholders on March 29, 2022. On December 19, 2022, Banco de Bogotá sold 20.89% of the outstanding investment of BHI through a tender offer. As of December 31, 2022, Banco de Bogotá held 4.11% of BHI. This investment is reflected as an investment at fair value through other comprehensive income. Following the sale, the equity method recognized under the “share of profit of equity accounted investees, net of tax (equity method)” between April and November was reclassified to discontinued operations. For comparability purposes of this presentation, we have reclassified BHI’s equity method for the second and third quarter of 2022 to net income from discontinued operations. Banco de Bogotá’s remaining 4.11% interest in BHI was disposed of in March 2023.
This report includes forward-looking statements. In some cases, you can identify these forward-looking statements by words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of these and other comparable words. Actual results and events may differ materially from those anticipated herein as a consequence of changes in general, economic and business conditions, changes in interest and currency rates and other risk described from time to time in our filings with the Registro Nacional de Valores y Emisores and the SEC.
Recipients of this document are responsible for the assessment and use of the information provided herein. Matters described in this presentation and our knowledge of them may change extensively and materially over time, but we expressly disclaim any obligation to review, update or correct the information provided in this report, including any forward looking statements, and do not intend to provide any update for such material developments prior to our next earnings report.
The content of this document and the figures included herein are intended to provide a summary of the subjects discussed rather than a comprehensive description.
When applicable, in this document we refer to billions as thousands of millions.
ABOUT GRUPO AVAL
Grupo Aval, leading financial conglomerate in Colombia, operates through: four commercial banks in Colombia (Banco de Bogotá, Banco de Occidente, Banco Popular and Banco AV Villas), the largest private pensions and severance fund manager in Colombia (Porvenir), and the largest financial corporation in Colombia (Corficolombiana). In addition, it is present in Central America through Multibank's operation in Panama through Banco de Bogotá.
Grupo Aval Acciones y Valores S.A. ("Grupo Aval") is an issuer of securities in Colombia and the United States ("SEC").
As of September 30, 2023, the Company has the following issuances:
Main domicile: Bogotá D.C., Colombia
Address: Carrera 13 No 26A – 47- 23rd Floor
| 2 |  |
| Key results of 3Q23 | 4 |
| Consolidated Financial Results | 5 |
| – Statement of Financial Position Analysis | 6 |
| – Income Statement Analysis | 14 |
| Risk Management | 18 |
| Quantitative and Qualitative disclosure about market risk | 18 |
| Corporate Governance | 18 |
| ESG | 18 |
| Separated Financial Results | 19 |
| – Statement of Financial Position Analysis | 19 |
| – Income Statement Analysis | 20 |
| Grupo Aval + Grupo Aval Limited | 21 |
| Definitions | 25 |
EXHIBIT 1 : CONSOLIDATED FINANCIAL STATEMENTS
EXHIBIT 2 : SEPARATE FINANCIAL STATEMENTS
| 3 |  |
Bogotá, November 15th, 2023. Grupo Aval S.A. (NYSE:AVAL) reported a consolidated attributable net income of Ps 64.8 billion (Ps 2.7 pesos per share) for 3Q23. ROAE was 1.6% and ROAA was 0.4% for 3Q23.
| COP $tn | 3Q22 | 2Q23 | 3Q23 | 3Q23 vs 2Q23 | 3Q23 vs 3Q22 | |||||||
| Balance Sheet | Gross Loans | $ 175.1 | $ 184.4 | $ 186.5 | 1.1% | 6.5% | ||||||
| Deposits | $ 166.5 | $ 180.2 | $ 180.3 | 0.0% | 8.3% | |||||||
| Deposits/Net Loans | 0.99 x | 1.01 x | 1.01 x | 0.00 x | 0.02 x | |||||||
| Loan Quality | 90 days PDLs / Gross Loans | 3.2% | 3.6% | 3.8% | 23 bps | 56 bps | ||||||
| Allowance/90 days PDLs | 1.59 x | 1.43 x | 1.39 x | -0.04 x | -0.20 x | |||||||
| Cost of risk | 1.4% | 2.2% | 2.5% | 37 bps | 118 bps | |||||||
| Profitability | Net interest margin | 3.5% | 3.4% | 2.8% | (63) bps | (75) bps | ||||||
| Fee income Ratio | 19.2% | 22.7% | 23.5% | 80 bps | 431 bps | |||||||
| Efficiency Ratio | 48.2% | 53.7% | 54.8% | 112 bps | 661 bps | |||||||
| Attributable net income | $ 0.41 | $ 0.17 | $ 0.06 | -61.0% | -84.1% | |||||||
| ROAA | 1.3% | 0.6% | 0.4% | (21) bps | (92) bps | |||||||
| ROAE | 9.8% | 4.1% | 1.6% | (250) bps | (826) bps |
Gross loans excludes interbank and overnight funds. PDLs 90+ defined as loans more than 90 days past due. Cost of Risk calculated as Impairment loss on loans and other accounts receivable net of recoveries of charged-off assets divided by average gross loans. Net Interest Margin includes net interest income plus net trading income from debt and equity investments at FVTPL divided by total average interest-earning assets. Fee income ratio is calculated as net income from commissions and fees divided by net interest income plus net income from commissions and fees, gross profit from sales of goods and services, net trading income, net income from other financial instruments mandatory at FVTPL and total other income. Efficiency Ratio is calculated as total other expenses divided by net interest income plus net income from commissions and fees, gross profit from sales of goods and services, net trading income, net income from other financial instruments mandatory at FVTPL and total other income. ROAA is calculated as annualized Net Income divided by average of total assets. ROAE is calculated as Net Income attributable to Aval's shareholders divided by average attributable shareholders' equity. NS refers to non-significant figures.
| 4 |  |
Grupo Aval Acciones y Valores S.A.
Consolidated Financial Statements Under IFRS
Financial Statements Under IFRS
Information in Ps. Billions
| Consolidated Statement of Financial Position | 3Q22 | 2Q23 | 3Q23 | D | |||||
| 3Q23 vs. 2Q23 | 3Q23 vs. 3Q22 | ||||||||
| Cash and cash equivalents | 18,013.9 | 19,195.7 | 18,382.3 | -4.2% | 2.0% | ||||
| Trading assets | 11,870.9 | 13,256.1 | 12,936.0 | -2.4% | 9.0% | ||||
| Investment securities | 32,175.0 | 32,829.6 | 33,712.1 | 2.7% | 4.8% | ||||
| Hedging derivatives assets | 56.6 | 69.4 | 34.0 | -51.1% | -40.0% | ||||
| Total loans, net | 168,343.6 | 177,912.5 | 178,447.7 | 0.3% | 6.0% | ||||
| Tangible assets | 7,125.9 | 7,113.6 | 7,038.7 | -1.1% | -1.2% | ||||
| Goodwill | 2,250.9 | 2,215.2 | 2,210.7 | -0.2% | -1.8% | ||||
| Concession arrangement rights | 12,686.8 | 13,558.6 | 13,571.9 | 0.1% | 7.0% | ||||
| Other assets | 33,372.6 | 31,910.8 | 32,399.2 | 1.5% | -2.9% | ||||
| Total assets | 285,896.2 | 298,061.6 | 298,732.5 | 0.2% | 4.5% | ||||
| Trading liabilities | 2,295.8 | 1,859.9 | 1,258.7 | -32.3% | -45.2% | ||||
| Hedging derivatives liabilities | 4.9 | 8.9 | 116.0 | N.A. | N.A. | ||||
| Customer deposits | 166,533.2 | 180,244.5 | 180,296.3 | 0.0% | 8.3% | ||||
| Interbank borrowings and overnight funds | 11,267.0 | 13,459.9 | 15,322.5 | 13.8% | 36.0% | ||||
| Borrowings from banks and others | 26,266.6 | 23,916.9 | 23,589.1 | -1.4% | -10.2% | ||||
| Bonds issued | 29,127.8 | 25,424.8 | 24,641.6 | -3.1% | -15.4% | ||||
| Borrowings from development entities | 3,659.0 | 4,122.4 | 4,926.2 | 19.5% | 34.6% | ||||
| Other liabilities | 15,603.8 | 18,262.4 | 17,827.6 | -2.4% | 14.3% | ||||
| Total liabilities | 254,758.1 | 267,299.6 | 267,978.1 | 0.3% | 5.2% | ||||
| Equity attributable to owners of the parent | 16,766.5 | 16,465.4 | 16,381.6 | -0.5% | -2.3% | ||||
| Non-controlling interest | 14,371.6 | 14,296.6 | 14,372.8 | 0.5% | 0.0% | ||||
| Total equity | 31,138.1 | 30,762.0 | 30,754.4 | 0.0% | -1.2% | ||||
| Total liabilities and equity | 285,896.2 | 298,061.6 | 298,732.5 | 0.2% | 4.5% | ||||
| Consolidated Statement of Income | 3Q22 | 2Q23 | 3Q23 | D | |||||
| 3Q23 vs. 2Q23 | 3Q23 vs. 3Q22 | ||||||||
| Interest income | 5,213.0 | 7,154.6 | 7,334.6 | 2.5% | 40.7% | ||||
| Interest expense | 3,294.5 | 5,579.1 | 5,702.2 | 2.2% | 73.1% | ||||
| Net interest income | 1,918.5 | 1,575.5 | 1,632.4 | 3.6% | -14.9% | ||||
| Loans and other accounts receivable | 751.8 | 1,138.6 | 1,321.8 | 16.1% | 75.8% | ||||
| Other financial assets | (0.8) | (9.6) | (0.7) | -92.6% | -15.8% | ||||
| Recovery of charged-off financial assets | (173.1) | (140.8) | (148.8) | 5.7% | -14.0% | ||||
| Net impairment loss on financial assets | 577.9 | 988.3 | 1,172.3 | 18.6% | 102.9% | ||||
| Net interest income, after impairment losses | 1,340.6 | 587.2 | 460.1 | -21.6% | -65.7% | ||||
| Net income from commissions and fees | 746.7 | 883.9 | 859.4 | -2.8% | 15.1% | ||||
| Gross profit from sales of goods and services | 1,165.6 | 619.2 | 637.8 | 3.0% | -45.3% | ||||
| Net trading income | 756.4 | (783.1) | (253.9) | -67.6% | -133.6% | ||||
| Net income from other financial instruments mandatory at FVTPL | 68.2 | 76.6 | 76.6 | 0.0% | 12.3% | ||||
| Total other income | (769.3) | 1,516.6 | 700.2 | -53.8% | -191.0% | ||||
| Total other expenses | 1,874.7 | 2,089.2 | 2,003.3 | -4.1% | 6.9% | ||||
| Net income before income tax expense | 1,433.5 | 811.2 | 476.9 | -41.2% | -66.7% | ||||
| Income tax expense | 547.8 | 350.6 | 176.2 | -49.7% | -67.8% | ||||
| Net income for the period of continued operations | 885.7 | 460.6 | 300.7 | -34.7% | -66.1% | ||||
| Net income for the period of discontinued operations | 44.1 | - | - | N.A | -100.0% | ||||
| Net income for the period | 929.8 | 460.6 | 300.7 | -34.7% | -67.7% | ||||
| Non-controlling interest | 521.7 | 294.4 | 235.9 | -19.9% | -54.8% | ||||
| Net income attributable to owners of the parent | 408.1 | 166.2 | 64.8 | -61.0% | -84.1% | ||||
| Key ratios | 3Q22 | 2Q23 | 3Q23 | YTD 2022 | YTD 2023 | ||||
| Net Interest Margin(1) | 3.8% | 2.9% | 3.0% | 4.0% | 2.9% | ||||
| Net Interest Margin (including net trading income)(1) | 3.5% | 3.4% | 2.8% | 3.7% | 3.3% | ||||
| Efficiency ratio(2) | 48.2% | 53.7% | 54.8% | 42.8% | 51.5% | ||||
| 90 days PDL / Gross loans (5) | 3.2% | 3.6% | 3.8% | 3.2% | 3.8% | ||||
| Provision expense / Average gross loans (6) | 1.4% | 2.2% | 2.5% | 1.5% | 2.1% | ||||
| Allowance / 90 days PDL (5) | 1.59 | 1.43 | 1.39 | 1.59 | 1.39 | ||||
| Allowance / Gross loans | 5.1% | 5.1% | 5.3% | 5.1% | 5.3% | ||||
| Charge-offs / Average gross loans (6) | 2.1% | 2.7% | 1.9% | 2.0% | 2.1% | ||||
| Total loans, net / Total assets | 58.9% | 59.7% | 59.7% | 58.9% | 59.7% | ||||
| Deposits / Total loans, net | 98.9% | 101.3% | 101.0% | 98.9% | 101.0% | ||||
| Equity / Assets | 10.9% | 10.3% | 10.3% | 10.9% | 10.3% | ||||
| Tangible equity ratio (7) | 9.6% | 9.0% | 8.9% | 9.6% | 8.9% | ||||
| ROAA(3) | 1.3% | 0.6% | 0.4% | 2.4% | 0.8% | ||||
| ROAE(4) | 9.8% | 4.1% | 1.6% | 20.7% | 5.3% | ||||
| Shares outstanding (EoP) | 23,743,475,754 | 23,743,475,754 | 23,743,475,754 | 23,743,475,754 | 23,743,475,754 | ||||
| Shares outstanding (Average) | 23,743,475,754 | 23,743,475,754 | 23,743,475,754 | 22,939,927,075 | 23,743,475,754 | ||||
| Common share price (EoP) | 659.0 | 476.9 | 484.0 | 659.0 | 484.0 | ||||
| Preferred share price (EoP) | 580.0 | 486.0 | 514.5 | 580.0 | 514.5 | ||||
| BV/ EoP shares in Ps. | 706.2 | 693.5 | 689.9 | 706.2 | 689.9 | ||||
| EPS | 17.2 | 7.0 | 2.7 | 122.6 | 27.6 | ||||
| P/E (8) | 8.4 | 17.4 | 47.1 | 3.5 | 14.0 | ||||
| P/BV (8) | 0.8 | 0.7 | 0.7 | 0.8 | 0.7 | ||||
(1) NIM is calculated as Net Interest Income divided by the average of Interest Earning Assets; (2) Efficiency Ratio is calculated as total other expenses divided by net interest income plus net income from commissions and fees, gross profit from sales of goods and services, net trading income, net income from other financial instruments mandatory at FVTPL and total other income; (3) ROAA is calculated as Income before Minority Interest divided by the average of total assets for each quarter; (4) ROAE is calculated as Net Income attributable to Grupo Aval’s shareholders divided by the average of shareholders´ attributable equity for each quarter; (5) PDLs 90+ defined as loans more than 90 days past due include interest accounts receivables.
Gross loans excluding interbank and overnight funds; (6) Refers to average gross loans for the period; (7) Tangible Equity Ratio is calculated as Total Equity minus Intangibles (excluding those related to concessions) divided by Total Assets minus Intangibles (excluding those related to concessions); (8) Based on Preferred share prices.
| 5 | |
Consolidated Financial Results
Statement of Financial Position Analysis
1. Assets
Total assets as of September 30th, 2023 totaled Ps 298,732.5 billion showing an increase of 4.5% versus September 30th, 2022 and an increase of 0.2% versus June 30th, 2023. Growth was mainly driven by (i) a 6.0% year over year growth in total loans, net to Ps 178,447.7 billion, (ii) a 4.8% yearly growth in investment securities to Ps 33,712.1 billion and (iii) a 9.0% yearly growth in trading assets, net to Ps 12,936.0 billion.
1.1 Loan portfolio
Gross loans (excluding interbank and overnight funds) increased by 6.5% between September 30th, 2023 and September 30th, 2022 to Ps 186,480.4 billion mainly driven by (i) a 7.2% increase in Commercial loans to Ps 107,459.9 billion, (ii) a 6.8% increase in Mortgages loans to Ps 18,116.6 billion and (iii) a 5.2% increase in Consumer loans to Ps 60,631.5 billion.
Interbank & overnight funds decreased by 19.2% to Ps 1,810.5 billion during the last twelve months.
Loss allowance was Ps 9,843.1 billion as of September 30th, 2023 taking net loans to Ps 178,447.7 billion.
| Total loans, net | 3Q22 | 2Q23 | 3Q23 | D | |||||
| 3Q23 vs. 2Q23 | 3Q23 vs. 3Q22 | ||||||||
| Gross loans | |||||||||
| Commercial loans | 100,233.4 | 106,350.8 | 107,459.9 | 1.0% | 7.2% | ||||
| Consumer loans | 57,629.2 | 60,033.8 | 60,631.5 | 1.0% | 5.2% | ||||
| Mortgages loans | 16,966.6 | 17,756.5 | 18,116.6 | 2.0% | 6.8% | ||||
| Microcredit loans | 264.8 | 268.5 | 272.3 | 1.4% | 2.8% | ||||
| Gross loans | 175,094.0 | 184,409.6 | 186,480.4 | 1.1% | 6.5% | ||||
| Interbank & overnight funds | 2,241.6 | 2,938.1 | 1,810.5 | -38.4% | -19.2% | ||||
| Total gross loans | 177,335.7 | 187,347.7 | 188,290.8 | 0.5% | 6.2% | ||||
| Loss allowance | (8,992.0) | (9,435.2) | (9,843.1) | 4.3% | 9.5% | ||||
| Allowance for impairment of commercial loans | (5,393.0) | (5,189.7) | (5,243.1) | 1.0% | -2.8% | ||||
| Allowance for impairment of consumer loans | (3,189.2) | (3,828.3) | (4,175.6) | 9.1% | 30.9% | ||||
| Allowance for impairment of mortgages | (361.9) | (372.7) | (374.6) | 0.5% | 3.5% | ||||
| Allowance for impairment of microcredit loans | (48.0) | (44.5) | (49.8) | 11.9% | 3.8% | ||||
| Total loans, net | 168,343.6 | 177,912.5 | 178,447.7 | 0.3% | 6.0% | ||||
| 6 | |
The following table shows the gross loan composition per product of each of our loan categories.
| Gross loans | 3Q22 | 2Q23 | 3Q23 | D | |||||
| 3Q23 vs. 2Q23 | 3Q23 vs. 3Q22 | ||||||||
| General purpose | 71,226.6 | 74,522.8 | 74,711.5 | 0.3% | 4.9% | ||||
| Working capital | 14,137.7 | 15,703.4 | 16,323.7 | 4.0% | 15.5% | ||||
| Financial leases | 10,436.7 | 11,134.7 | 10,999.9 | -1.2% | 5.4% | ||||
| Funded by development banks | 3,642.2 | 4,047.3 | 4,432.4 | 9.5% | 21.7% | ||||
| Overdrafts | 443.9 | 587.7 | 623.1 | 6.0% | 40.4% | ||||
| Credit cards | 346.4 | 354.9 | 369.3 | 4.1% | 6.6% | ||||
| Commercial loans | 100,233.4 | 106,350.8 | 107,459.9 | 1.0% | 7.2% | ||||
| Payroll loans | 33,233.5 | 32,836.8 | 33,313.1 | 1.5% | 0.2% | ||||
| Personal loans | 12,404.4 | 14,289.6 | 14,301.4 | 0.1% | 15.3% | ||||
| Credit cards | 6,645.6 | 7,406.3 | 7,482.6 | 1.0% | 12.6% | ||||
| Automobile and vehicle | 5,128.4 | 5,296.6 | 5,322.7 | 0.5% | 3.8% | ||||
| Financial leases | 20.2 | 16.3 | 14.2 | -12.8% | -29.4% | ||||
| Overdrafts | 65.0 | 74.4 | 82.5 | 11.0% | 26.9% | ||||
| Other | 132.2 | 113.8 | 115.0 | 1.0% | -13.0% | ||||
| Consumer loans | 57,629.2 | 60,033.8 | 60,631.5 | 1.0% | 5.2% | ||||
| Mortgages | 14,657.3 | 15,542.0 | 15,936.0 | 2.5% | 8.7% | ||||
| Housing leases | 2,309.3 | 2,214.5 | 2,180.7 | -1.5% | -5.6% | ||||
| Mortgages loans | 16,966.6 | 17,756.5 | 18,116.6 | 2.0% | 6.8% | ||||
| Microcredit loans | 264.8 | 268.5 | 272.3 | 1.4% | 2.8% | ||||
| Gross loans | 175,094.0 | 184,409.6 | 186,480.4 | 1.1% | 6.5% | ||||
| Interbank & overnight funds | 2,241.6 | 2,938.1 | 1,810.5 | -38.4% | -19.2% | ||||
| Total gross loans | 177,335.7 | 187,347.7 | 188,290.8 | 0.5% | 6.2% | ||||
In terms of gross loans (excluding interbank and overnight funds), 91.9% are domestic and 8.1% are foreign (reflecting the Multi Financial Holding operation).
Over the quarter we observed a weak performance in all types of loans related to the economic slowdown trend. However, we are the competitor (sum of Aval Banks) with the highest market share gain in Colombia, both in the quarter with 27 bps and in the year to date with 56 bps.
Commercial loans increased by 7.2% during the last twelve months and 1.0% during the quarter. Consumer loans growth over the last year was driven by personal loans and overdrafts. Consumer loans grew by 5.2% annually and increased 1.0% over the quarter. Mortgages loans increased by 6.8% over the year and increased 2.0% in the last quarter.
The following table shows the gross loans composition per entity. During the last twelve months, Banco de Occidente showed the highest growth rate within our banks, driven by a strong performance in all types of loans with consumer loans growing 16.2%, commercial loans 12.0% and mortgages growing 4.9%.
| 7 | |
| Gross loans / Bank ($) | 3Q22 | 2Q23 | 3Q23 | D | |||||
| 3Q23 vs. 2Q23 | 3Q23 vs. 3Q22 | ||||||||
| Banco de Bogotá | 92,233.3 | 97,725.8 | 99,995.5 | 2.3% | 8.4% | ||||
| Banco de Occidente | 43,289.4 | 47,168.0 | 48,750.1 | 3.4% | 12.6% | ||||
| Banco Popular | 25,121.4 | 23,913.9 | 22,389.8 | -6.4% | -10.9% | ||||
| Banco AV Villas | 14,542.8 | 14,744.8 | 14,549.4 | -1.3% | 0.0% | ||||
| Corficolombiana | 2,098.9 | 2,060.4 | 2,073.0 | 0.6% | -1.2% | ||||
| Grupo Aval Holding | - | 1,338.6 | 1,305.1 | -2.5% | N.A. | ||||
| Eliminations | (2,191.8) | (2,542.0) | (2,582.5) | 1.6% | 17.8% | ||||
| Gross loans | 175,094.0 | 184,409.6 | 186,480.4 | 1.1% | 6.5% | ||||
| Interbank & overnight funds | 2,241.6 | 2,938.1 | 1,810.5 | -38.4% | -19.2% | ||||
| Total gross loans | 177,335.7 | 187,347.7 | 188,290.8 | 0.5% | 6.2% | ||||
| Gross loans / Bank (%) | 3Q22 | 2Q23 | 3Q23 | ||||||
| Banco de Bogotá | 52.7% | 53.0% | 53.6% | ||||||
| Banco de Occidente | 24.7% | 25.6% | 26.1% | ||||||
| Banco Popular | 14.3% | 13.0% | 12.0% | ||||||
| Banco AV Villas | 8.3% | 8.0% | 7.8% | ||||||
| Corficolombiana | 1.2% | 1.1% | 1.1% | ||||||
| Grupo Aval Holding | 0.0% | 0.7% | 0.7% | ||||||
| Eliminations | -1.3% | -1.4% | -1.4% | ||||||
| Gross loans | 100% | 100% | 100% | ||||||
Figures for Grupo Aval Holding reflect the credit operation entered into with Esadinco S.A. (Related Party) in December 2022. This transaction was conducted on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons, and did not involve more than the normal risk of collectability or present other unfavorable features.
High interest rates, inflationary pressures and the economic slowdown have led to a deterioration in the quality of our loan portfolio both over the quarter and the year. However, the PDL formation is beginning to show signs of improvement in the products that had shown higher delinquencies, such as personal loans and credit cards.
Our 30 days PDL to total loans were 5.3% for 3Q23, 5.1% for 2Q23 and 4.3% for 3Q22. The ratio of 90 days PDL to total loans was 3.8% for 3Q23, 3.6% for 2Q23 and 3.2% for 3Q22.
30 days PDL ratio for commercial loans was 4.5% for 3Q23, 4.5% for 2Q23 and 4.2% for 3Q22; 90 days PDL ratio was 4.0%, 3.8% and 3.6%, respectively. 30 days PDL ratio for consumer loans was 6.2% for 3Q23, 5.8% for 2Q23, and 4.3% for 3Q22. 90 days PDL ratio was 3.5%, 3.1% and 2.6%, respectively. 30 days PDL ratio for mortgages was 6.5% for 3Q23, 6.2% for 2Q23, and 5.0% for 3Q22; 90 days PDL ratio was 3.6%, 3.4% and 3.1%, respectively.
| 8 | |
| Past due loans | 3Q22 | 2Q23 | 3Q23 | D | |||||
| 3Q23 vs. 2Q23 | 3Q23 vs. 3Q22 | ||||||||
| Performing | 96,049.7 | 101,590.3 | 102,585.4 | 1.0% | 6.8% | ||||
| Between 31 and 90 days past due | 577.1 | 700.1 | 613.6 | -12.4% | 6.3% | ||||
| +90 days past due | 3,606.7 | 4,060.3 | 4,261.0 | 4.9% | 18.1% | ||||
| Commercial loans | 100,233.4 | 106,350.8 | 107,459.9 | 1.0% | 7.2% | ||||
| Performing | 55,131.6 | 56,544.9 | 56,901.9 | 0.6% | 3.2% | ||||
| Between 31 and 90 days past due | 1,009.7 | 1,610.6 | 1,600.1 | -0.7% | 58.5% | ||||
| +90 days past due | 1,487.9 | 1,878.3 | 2,129.5 | 13.4% | 43.1% | ||||
| Consumer loans | 57,629.2 | 60,033.8 | 60,631.5 | 1.0% | 5.2% | ||||
| Performing | 16,118.9 | 16,663.4 | 16,945.6 | 1.7% | 5.1% | ||||
| Between 31 and 90 days past due | 326.9 | 488.2 | 524.1 | 7.3% | 60.3% | ||||
| +90 days past due | 520.9 | 605.0 | 647.0 | 6.9% | 24.2% | ||||
| Mortgages loans | 16,966.6 | 17,756.5 | 18,116.6 | 2.0% | 6.8% | ||||
| Performing | 219.7 | 226.7 | 228.2 | 0.7% | 3.9% | ||||
| Between 31 and 90 days past due | 7.4 | 10.1 | 9.0 | -11.0% | 22.2% | ||||
| +90 days past due | 37.7 | 31.7 | 35.1 | 10.7% | -6.8% | ||||
| Microcredit loans | 264.8 | 268.5 | 272.3 | 1.4% | 2.8% | ||||
| Gross loans | 175,094.0 | 184,409.6 | 186,480.4 | 1.1% | 6.5% | ||||
| Interbank & overnight funds | 2,241.6 | 2,938.1 | 1,810.5 | -38.4% | -19.2% | ||||
| Total gross loans | 177,335.7 | 187,347.7 | 188,290.8 | 0.5% | 6.2% | ||||
| 30 Days PDL / gross loans (*) | 4.3% | 5.1% | 5.3% | ||||||
| 90 Days PDL / gross loans (*) | 3.2% | 3.6% | 3.8% | ||||||
| Loans by stages (%) | 3Q22 | 2Q23 | 3Q23 | ||||||
| Loans classified as Stage 2 / gross loans | 7.3% | 4.8% | 4.8% | ||||||
| Loans classified as Stage 3 / gross loans | 6.4% | 6.4% | 6.5% | ||||||
| Loans classified as Stage 2 and 3 / gross loans | 13.7% | 11.3% | 11.4% | ||||||
| Allowance for Stage 1 loans / Stage 1 loans | 0.9% | 1.0% | 1.1% | ||||||
| Allowance for Stage 2 loans / Stage 2 loans | 11.6% | 14.0% | 13.7% | ||||||
| Allowance for Stage 3 loans / Stage 3 loans | 54.3% | 54.7% | 55.6% | ||||||
| Allowance for Stage 2 y 3 loans / Stage 2 and 3 loans | 31.6% | 37.3% | 37.8% | ||||||
Grupo Aval’s coverage over its 90 days PDL was 1.4x for 3Q23, 1.4x for 2Q23, and 1.6x for 3Q22, coverage over its 30 days PDL was 1.0x in 3Q23, 1.0x for 2Q23 and 1.2x 3Q22.
Impairment loss, net of recoveries of charged off assets to average gross loans was 2.5% for 3Q23, 2.2% for 2Q23, and 1.4% 3Q22. Charge-offs to average gross loans was 1.9% for 3Q23, 2.7% for 2Q23, and 2.1% in 3Q22.
| Coverage and cost of risk | 3Q22 | 2Q23 | 3Q23 | ||||||
| Allowance for impairment / 30 days PDL | 1.2 | 1.0 | 1.0 | ||||||
| Allowance for impairment / 90 days PDL | 1.6 | 1.4 | 1.4 | ||||||
| Allowance for impairment / gross loans (*) | 5.1% | 5.1% | 5.3% | ||||||
| Impairment loss / 30 days PDL | 0.4 | 0.5 | 0.5 | ||||||
| Impairment loss / 90 days PDL | 0.5 | 0.7 | 0.7 | ||||||
| Impairment loss / average gross loans (*) | 1.8% | 2.5% | 2.9% | ||||||
| Impairment loss, net of recoveries of charged-off assets / average gross loans (*) | 1.4% | 2.2% | 2.5% | ||||||
| Charge-offs / average gross loans (*) | 2.1% | 2.7% | 1.9% |
(*) Gross loans exclude interbank and overnight funds.
| 9 | |
1.2 Investment securities and trading assets
Total investment securities and trading assets increased 5.9% to Ps 46,648.1 billion between September 30th, 2023 and September 30th, 2022 and increased 1.2% versus June 30th, 2023.
Ps 38,481.8 billion of our total portfolio is invested in debt securities, which increased by 9.3% between September 30th, 2023 and September 30th, 2022 and increased by 3.7% versus June 30th, 2023. Ps 6,432.4 billion of our total investment securities is invested in equity securities, which increased by 1.3% between September 30th, 2023 and September 30th, 2022 and decreased by 8.8% versus June 30th, 2023.
| Investment and trading assets | 3Q22 | 2Q23 | 3Q23 | D | |||||
| 3Q23 vs. 2Q23 | 3Q23 vs. 3Q22 | ||||||||
| Debt securities | 4,081.5 | 5,323.3 | 5,764.4 | 8.3% | 41.2% | ||||
| Equity securities | 5,317.8 | 6,018.7 | 5,437.8 | -9.7% | 2.3% | ||||
| Derivative assets | 2,471.6 | 1,914.1 | 1,733.9 | -9.4% | -29.8% | ||||
| Trading assets | 11,870.9 | 13,256.1 | 12,936.0 | -2.4% | 9.0% | ||||
| Investments in debt securities at FVTPL (non compliant with SPPI test) | - | 1.4 | 1.4 | 3.4% | N.A | ||||
| Debt securities at FVOCI | 21,955.7 | 22,055.6 | 22,932.3 | 4.0% | 4.4% | ||||
| Equity securities at FVOCI | 1,034.3 | 1,034.2 | 994.6 | -3.8% | -3.8% | ||||
| Investments in securities at FVOCI | 22,990.1 | 23,089.9 | 23,927.0 | 3.6% | 4.1% | ||||
| Investments in debt securities at AC | 9,185.0 | 9,738.4 | 9,783.7 | 0.5% | 6.5% | ||||
| Investment and trading assets | 44,045.9 | 46,085.7 | 46,648.1 | 1.2% | 5.9% | ||||
The average yield on our debt and equity investment securities (trading assets, investments in debt securities at FVTPL, investments in securities at FVOCI and investments in debt securities at AC) was 5.1% for 3Q23, 9.1% for 2Q23 and 4.4% for 3Q22.
1.3 Cash and Cash Equivalents
As of September 30th, 2023 cash and cash equivalents had a balance of Ps 18,382.3 billion showing an increase of 2.0% versus September 30th, 2022 and a decrease of 4.2% versus June 30th, 2023.
The ratio of cash and cash equivalents to customer deposits was 10.2% at September 30th, 2023, 10.6% at June 30th, 2023, and 10.8% at September 30th, 2022.
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1.4 Goodwill and Other Intangibles
Goodwill and other intangibles as of September 30th, 2023 reached Ps 18,044.5 billion, increasing by 7.5% versus September 30th, 2022 and 0.5% versus June 30th, 2023.
Goodwill as of September 30th, 2023 was Ps 2,210.7 billion, decreasing by 1.8% versus September 30th, 2022 and 0.2% versus June 30th, 2023.
Other intangibles, which include “concession arrangement rights” and other intangibles, mainly reflect the value of road concessions recorded for the most part at Corficolombiana. Other intangibles as of September 30th, 2023 reached Ps 15,833.8 billion and grew by 8.9% versus September 30th, 2022 and increased by 0.6% versus June 30th, 2023.
2. Liabilities
As of September 30th, 2023 Total Funding represented 92.8% of total liabilities and other liabilities represented 7.2%.
2.1 Funding
Total Funding (Total financial liabilities at amortized cost) which includes (i) Customer deposits, (ii) Interbank borrowings and overnight funds, (iii) Borrowings from banks and others, (iv) Bonds issued, and (v) Borrowing from development entities had a balance of Ps 248,775.8 billion as of September 30th, 2023 showing an increase of 5.0% versus September 30th, 2022 and an increase of 0.7% versus June 30th, 2023. Total customer deposits represented 72.5% of total funding as of 3Q23, 72.9% for 2Q23, and 70.3% 3Q22.
Average cost of funds was 9.2% for 3Q23, 9.0% for 2Q23 and 5.7% for 3Q22.
2.1.1 Customer deposits
| Customer deposits | 3Q22 | 2Q23 | 3Q23 | D | |||||
| 3Q23 vs. 2Q23 | 3Q23 vs. 3Q22 | ||||||||
| Checking accounts | 19,414.8 | 17,387.8 | 16,161.5 | -7.1% | -16.8% | ||||
| Other deposits | 783.8 | 440.2 | 390.9 | -11.2% | -50.1% | ||||
| Non-interest bearing | 20,198.6 | 17,828.0 | 16,552.5 | -7.2% | -18.1% | ||||
| Checking accounts | 6,126.7 | 6,156.7 | 6,663.4 | 8.2% | 8.8% | ||||
| Time deposits | 68,708.1 | 85,946.1 | 88,788.1 | 3.3% | 29.2% | ||||
| Savings deposits | 71,499.7 | 70,313.7 | 68,292.3 | -2.9% | -4.5% | ||||
| Interest bearing | 146,334.6 | 162,416.6 | 163,743.8 | 0.8% | 11.9% | ||||
| Customer deposits | 166,533.2 | 180,244.5 | 180,296.3 | 0.0% | 8.3% | ||||
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Of our total customer deposits as of September 30th, 2023, checking accounts represented 12.7%, time deposits 49.2%, savings accounts 37.9%, and other deposits 0.2%.
The following table shows the customer deposits composition by bank. During the last twelve months, Banco de Occidente showed the highest growth rate in customer deposits within our companies, in line with gross loan growth.
| Deposits / Bank ($) | 3Q22 | 2Q23 | 3Q23 | D | |||||
| 3Q23 vs. 2Q23 | 3Q23 vs. 3Q22 | ||||||||
| Banco de Bogotá | 83,585.0 | 90,336.7 | 91,237.6 | 1.0% | 9.2% | ||||
| Banco de Occidente | 40,210.5 | 46,515.2 | 47,872.6 | 2.9% | 19.1% | ||||
| Banco Popular | 25,198.9 | 24,347.5 | 23,322.8 | -4.2% | -7.4% | ||||
| Banco AV Villas | 14,095.7 | 14,642.5 | 14,611.3 | -0.2% | 3.7% | ||||
| Corficolombiana | 6,689.2 | 7,220.9 | 7,547.8 | 4.5% | 12.8% | ||||
| Eliminations | (3,246.2) | (2,818.3) | (4,295.7) | 52.4% | 32.3% | ||||
| Total Grupo Aval | 166,533.2 | 180,244.5 | 180,296.3 | 0.0% | 8.3% | ||||
| Deposits / Bank (%) | 3Q22 | 2Q23 | 3Q23 | ||||||
| Banco de Bogotá | 50.2% | 50.1% | 50.6% | ||||||
| Banco de Occidente | 24.1% | 25.8% | 26.6% | ||||||
| Banco Popular | 15.1% | 13.5% | 12.9% | ||||||
| Banco AV Villas | 8.5% | 8.1% | 8.1% | ||||||
| Corficolombiana | 4.0% | 4.0% | 4.2% | ||||||
| Eliminations | -1.9% | -1.6% | -2.4% | ||||||
| Total Grupo Aval | 100.0% | 100.0% | 100.0% | ||||||
2.1.2 Borrowings from Banks and Other (includes borrowings from development entities)
As of September 30th, 2023 borrowings from banks and other totaled Ps 28,515.4 billion, decreasing 4.7% versus September 30th, 2022 and increasing 1.7% versus June 30th, 2023.
2.1.3 Bonds issued
Total bonds issued as of September 30th, 2023 totaled Ps 24,641.6 billion and decreased 15.4% versus September 30th, 2022 and 3.1% versus June 30th, 2023. The quarterly and yearly decrease is mainly explained by the appreciation of the Colombian Peso on our Us$ denominated bonds.
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3. Non-controlling Interest
Non-controlling Interest in Grupo Aval reflects the minority stakes that third party shareholders hold in each of its direct consolidated subsidiaries (Banco de Bogotá, Banco de Occidente, Banco Popular, Banco AV Villas, Corficolombiana and Porvenir).
As of September 30th, 2023 non-controlling interest was Ps 14,372.8 billion which increased by 0.01% versus September 30th, 2022 and 0.5% versus June 30th, 2023. Total non-controlling interest represents 46.7% of total equity as of 3Q23, compared to 46.5% in 2Q23 and 46.2% in 3Q22.
Total non-controlling interest derives from the sum of the combined minority interests of our banks and of Grupo Aval, applying eliminations associated with the consolidation process of Grupo Aval.
| Percentage consolidated by Aval | 3Q22 | 2Q23 | 3Q23 | D | |||||
| 3Q23 vs. 2Q23 | 3Q23 vs. 3Q22 | ||||||||
| Banco de Bogotá | 68.9% | 68.9% | 68.9% | - | - | ||||
| Banco de Occidente | 72.3% | 72.3% | 72.3% | - | - | ||||
| Banco Popular | 93.7% | 93.7% | 93.7% | - | - | ||||
| Banco AV Villas | 79.9% | 79.9% | 79.9% | - | - | ||||
| Porvenir (1) | 75.8% | 75.8% | 75.8% | - | 0 | ||||
| Corficolombiana | 40.4% | 40.5% | 40.5% | - | 13 | ||||
4. Attributable Shareholders’ Equity
Attributable shareholders’ equity as of September 30th, 2023 was Ps 16,381.6 billion, showing a decrease of 2.3% versus September 30th, 2022 and a 0.5% versus June 30th, 2023. This quarter, the portfolios experienced unfavorable valuations that were reflected in other comprehensive income.
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Income Statement Analysis
Our net income attributable to the owners of the parent company for 3Q23 was Ps 64.8 billion.
| Consolidated Statement of Income | 3Q22 | 2Q23 | 3Q23 | D | |||||
| 3Q23 vs. 2Q23 | 3Q23 vs. 3Q22 | ||||||||
| Interest income | 5,213.0 | 7,154.6 | 7,334.6 | 2.5% | 40.7% | ||||
| Interest expense | 3,294.5 | 5,579.1 | 5,702.2 | 2.2% | 73.1% | ||||
| Net interest income | 1,918.5 | 1,575.5 | 1,632.4 | 3.6% | -14.9% | ||||
| Loans and other accounts receivable | 751.8 | 1,138.6 | 1,321.8 | 16.1% | 75.8% | ||||
| Other financial assets | (0.8) | (9.6) | (0.7) | -92.6% | -15.8% | ||||
| Recovery of charged-off financial assets | (173.1) | (140.8) | (148.8) | 5.7% | -14.0% | ||||
| Net impairment loss on financial assets | 577.9 | 988.3 | 1,172.3 | 18.6% | 102.9% | ||||
| Net income from commissions and fees | 746.7 | 883.9 | 859.4 | -2.8% | 15.1% | ||||
| Gross profit from sales of goods and services | 1,165.6 | 619.2 | 637.8 | 3.0% | -45.3% | ||||
| Net trading income | 756.4 | (783.1) | (253.9) | -67.6% | -133.6% | ||||
| Net income from other financial instruments mandatory at FVTPL | 68.2 | 76.6 | 76.6 | 0.0% | 12.3% | ||||
| Total other income | (769.3) | 1,516.6 | 700.2 | -53.8% | -191.0% | ||||
| Total other expenses | 1,874.7 | 2,089.2 | 2,003.3 | -4.1% | 6.9% | ||||
| Net income before income tax expense | 1,433.5 | 811.2 | 476.9 | -41.2% | -66.7% | ||||
| Income tax expense | 547.8 | 350.6 | 176.2 | -49.7% | -67.8% | ||||
| Net income for the period of continued operations | 885.7 | 460.6 | 300.7 | -34.7% | -66.1% | ||||
| Net income for the period of discontinued operations | 44.1 | - | - | N.A | -100.0% | ||||
| Net income for the period | 929.8 | 460.6 | 300.7 | -34.7% | -67.7% | ||||
| Non-controlling interest | 521.7 | 294.4 | 235.9 | -19.9% | -54.8% | ||||
| Net income attributable to owners of the parent | 408.1 | 166.2 | 64.8 | -61.0% | -84.1% | ||||
1. Net Interest Income
| Net interest income | 3Q22 | 2Q23 | 3Q23 | D | |||||
| 3Q23 vs. 2Q23 | 3Q23 vs. 3Q22 | ||||||||
| Interest income | |||||||||
| Commercial | 2,399.6 | 3,623.3 | 3,699.4 | 2.1% | 54.2% | ||||
| Interbank and overnight funds | 142.5 | 252.6 | 234.2 | -7.3% | 64.3% | ||||
| Consumer | 1,819.5 | 2,268.9 | 2,380.4 | 4.9% | 30.8% | ||||
| Mortgages and housing leases | 352.7 | 412.4 | 420.8 | 2.0% | 19.3% | ||||
| Microcredit | 15.7 | 17.5 | 18.1 | 3.4% | 15.3% | ||||
| Loan portfolio | 4,730.0 | 6,574.9 | 6,752.9 | 2.7% | 42.8% | ||||
| Interests on investments in debt securities | 483.0 | 579.7 | 581.7 | 0.3% | 20.4% | ||||
| Total interest income | 5,213.0 | 7,154.6 | 7,334.6 | 2.5% | 40.7% | ||||
| Interest expense | |||||||||
| Checking accounts | 39.1 | 71.6 | 38.3 | -46.4% | -1.9% | ||||
| Time deposits | 1,146.5 | 2,519.9 | 2,663.5 | 5.7% | 132.3% | ||||
| Savings deposits | 1,073.4 | 1,343.0 | 1,491.4 | 11.1% | 38.9% | ||||
| Total interest expenses on deposits | 2,259.0 | 3,934.4 | 4,193.2 | 6.6% | 85.6% | ||||
| Interbank borrowings and overnight funds | 171.7 | 494.8 | 415.5 | -16.0% | 142.0% | ||||
| Borrowings from banks and others | 235.5 | 456.1 | 410.7 | -10.0% | 74.4% | ||||
| Bonds issued | 561.1 | 561.1 | 529.0 | -5.7% | -5.7% | ||||
| Borrowings from development entities | 67.3 | 132.6 | 153.9 | 16.0% | 128.8% | ||||
| Total interest expenses on financial obligations | 1,035.5 | 1,644.7 | 1,509.1 | -8.2% | 45.7% | ||||
| Total interest expense | 3,294.5 | 5,579.1 | 5,702.2 | 2.2% | 73.1% | ||||
| Net interest income | 1,918.5 | 1,575.5 | 1,632.4 | 3.6% | -14.9% | ||||
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Our net interest income decreased by 14.9% to Ps 1,632.4 billion for 3Q23 versus 3Q22 and increased by 3.6% versus 2Q23. The decrease versus 3Q22 was derived mainly from a 40.7% increase in total interest income offset by a 73.1% increase in total interest expense.
Our Net Interest Margin(*) was 2.8% for 3Q23, 3.4% for 2Q23, and 3.5% in 3Q22. Net Interest Margin on Loans was 4.2% for 3Q23, 4.0% for 2Q23, and 4.6% for 3Q22. On the other hand, our Net Investments Margin was -3.0% for 3Q23, 0.9% for 2Q23 and -0.7% for 3Q22.
The decrease of NIM on investments is related to the lower performance of debt and equity investment securities due to the high volatility in the financial markets.
2. Impairment loss on financial assets, net
Our impairment loss on financial assets, net increased by 102.9% to Ps 1,172.3 billion for 3Q23 versus 3Q22 and by 18.6% versus 2Q23.
| Net impairment loss on financial assets | 3Q22 | 2Q23 | 3Q23 | D | |||||
| 3Q23 vs. 2Q23 | 3Q23 vs. 3Q22 | ||||||||
| Loans and other accounts receivable | 751.8 | 1,138.6 | 1,321.8 | 16.1% | 75.8% | ||||
| Other financial assets | (0.8) | (9.6) | (0.7) | -92.6% | -15.8% | ||||
| Recovery of charged-off financial assets | (173.1) | (140.8) | (148.8) | 5.7% | -14.0% | ||||
| Net impairment loss on financial assets | 577.9 | 988.3 | 1,172.3 | 18.6% | 102.9% | ||||
Our annualized gross cost of risk was 2.9% for 3Q23, 2.5% for 2Q23, and 1.8% for 3Q22. Net of recoveries of charged-off assets our ratio was 2.5% for 3Q23, 2.2% 2Q23, and 1.4% for 3Q22.
(*) Grupo Aval’s NIM without income from trading securities and investment in debt securities designated at fair value through profit and loss (non compliant with SPPI test) was 3.0% for 3Q23, 2.9% for 2Q23, and 3.8% for 3Q22 .
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3. Non-interest income
| Total non-interest income | 3Q22 | 2Q23 | 3Q23 | D | |||||
| 3Q23 vs. 2Q23 | 3Q23 vs. 3Q22 | ||||||||
| Income from commissions and fees | |||||||||
| Banking fees (1) | 636.2 | 675.3 | 682.6 | 1.1% | 7.3% | ||||
| Trust activities and management services | 88.6 | 114.7 | 112.8 | -1.7% | 27.4% | ||||
| Pension and severance fund management | 202.9 | 271.4 | 252.4 | -7.0% | 24.4% | ||||
| Bonded warehouse services | 49.5 | 47.5 | 47.6 | 0.2% | -3.7% | ||||
| Total income from commissions and fees | 977.1 | 1,108.9 | 1,095.4 | -1.2% | 12.1% | ||||
| Expenses from commissions and fees | 230.4 | 225.0 | 236.0 | 4.9% | 2.4% | ||||
| Net income from commissions and fees | 746.7 | 883.9 | 859.4 | -2.8% | 15.1% | ||||
| Income from sales of goods and services | 3,041.1 | 2,675.8 | 2,542.4 | -5.0% | -16.4% | ||||
| Costs and expenses from sales of goods and services | 1,875.5 | 2,056.6 | 1,904.6 | -7.4% | 1.5% | ||||
| Gross profit from sales of goods and services | 1,165.6 | 619.2 | 637.8 | 3.0% | -45.3% | ||||
| Total trading investment income | (42.0) | 392.1 | (26.7) | -106.8% | -36.4% | ||||
| Total derivatives income | 798.4 | (1,175.2) | (227.2) | -80.7% | -128.5% | ||||
| Net trading income | 756.4 | (783.1) | (253.9) | -67.6% | -133.6% | ||||
| Net income from other financial instruments mandatory at FVTPL | 68.2 | 76.6 | 76.6 | 0.0% | 12.3% | ||||
| Other income | |||||||||
| Foreign exchange gains (losses), net | (951.9) | 1,196.3 | 317.6 | -73.5% | 133.4% | ||||
| Net gain on sale of investments and OCI realization | (11.4) | 32.6 | 4.1 | -87.3% | -136.2% | ||||
| Gain on the sale of non-current assets held for sale | 2.7 | 20.6 | 15.0 | -27.0% | N.A. | ||||
| Income from non-consolidated investments (2) | 104.8 | 101.8 | 95.5 | -6.3% | -8.9% | ||||
| Net gains on asset valuations | 8.8 | (29.4) | 14.2 | -148.3% | 60.7% | ||||
| Other income from operations | 77.8 | 194.7 | 253.8 | 30.3% | 226.3% | ||||
| Total other income | (769.3) | 1,516.6 | 700.2 | -53.8% | -191.0% | ||||
| Total non-interest income | 1,967.6 | 2,313.1 | 2,020.1 | -12.7% | 2.7% | ||||
| (1) | Includes commissions on banking services, office network services, credit and debit card fees, fees on drafts, checks and checkbooks and other fees |
| (2) | Includes share of profit of equity accounted investees, net of tax, and dividend income. |
3.1 Net income from commissions and fees
Net income from commissions and fees for 3Q23 totaled Ps 859.4 billion and increased by 15.1% versus 3Q22 and decreased by 2.8% versus 2Q23. Income from commissions and fees increased by 12.1% to Ps 1,095.4 billion for 3Q23 versus 3Q22 and decreased by 1.2% versus 2Q23.
Pension and severance fund management fees and trust activities and portfolio management services fees decreased over the quarter due to financial markets volatility that impacted our performance-based fees.
3.2 Gross profit from sales of goods and services
Gross profit from sales of goods and services (non-financial sector) decreased by 45.3% to Ps 637.8 billion for 3Q23 versus 3Q22 and increased by 3.0% versus 2Q23. The infrastructure sector showed a reduction of 53.1% compared to the third quarter of 2022, explained by softer inflation and FX metrics that lowered interest income on financial assets. In addition, concessions are moving from the construction to the operation phase.
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3.3 Net trading income and other income
| Other income | 3Q22 | 2Q23 | 3Q23 | D | |||||
| 3Q23 vs. 2Q23 | 3Q23 vs. 3Q22 | ||||||||
| Total derivatives income | 798.4 | (1,175.2) | (227.2) | -80.7% | -128.5% | ||||
| Foreign exchange gains (losses), net | (951.9) | 1,196.3 | 317.6 | -73.5% | 133.4% | ||||
| Derivatives and foreign exchange gains (losses), net (1) | (153.5) | 21.1 | 90.4 | 328.9% | 158.9% | ||||
| Net gains on asset valuations | 8.8 | (29.4) | 14.2 | 148.3% | 60.7% | ||||
| Net income from other financial instruments mandatory at FVTPL | 68.2 | 76.6 | 76.6 | 0.0% | 12.3% | ||||
| Net gain on sale of investments and OCI realization | (11.4) | 32.6 | 4.1 | -87.3% | 136.2% | ||||
| Gain on the sale of non-current assets held for sale | 2.7 | 20.6 | 15.0 | -27.0% | 464.0% | ||||
| Income from non-consolidated investments | 104.8 | 101.8 | 95.5 | -6.3% | -8.9% | ||||
| Other income from operations | 77.8 | 194.7 | 253.8 | 30.3% | 226.3% | ||||
| Total other income from operations | 97.3 | 417.9 | 549.6 | 31.5% | 464.7% | ||||
| (1) | Includes income from trading and hedging derivatives reflected as part of the net trading income on the statement of profit and loss. |
Total other income for 3Q23 totaled Ps 549.6 billion, the yearly and quarterly increase was due to the increase in foreign exchange gains and derivatives, net.
4. Other expenses
Total other expenses for 3Q23 totaled Ps 2,003.3 billion and increased by 6.9% versus 3Q22, and decreased by 4.1% versus 2Q23. Our efficiency ratio measured as total other expenses to total income was 54.8% in 3Q23, 53.7% in 2Q23 and 48.2% in 3Q22.
General and administrative expenses reached Ps. 1,009.3 billion, decreasing 7.2% over the quarter due to cost control initiatives. Operating taxes and deposit insurances increased 3.7% and 16.8% respectively compared to the previous quarter. Personnel expenses reached Ps. 751.3 billion, decreased 3.9% due to lower bonuses and efficiency programs. The ratio of annualized total other expenses as a percentage of average total assets was 2.7% for 3Q23 and 2.8 for 2Q23, and 2.7% for 3Q22.
5. Non-controlling Interest
Non-controlling interest in Grupo Aval mainly reflects the minority stakes that third party shareholders hold in each of its direct consolidated subsidiaries (Banco de Bogotá, Banco de Occidente, Banco Popular, Banco AV Villas, Corficolombiana and Porvenir).
Non-controlling interest in the income statement was Ps 235.9 billion, showing a 54.8% decrease versus 3Q22 and 19.9% versus 2Q23. In addition, the ratio of non-controlling interest to income before non-controlling interest was 78.4% in 3Q23, 63.9% in 2Q23 and 56.1% in 3Q22.
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RISK MANAGEMENT
During the third quarter of 2023, there were no material changes in the degree of exposure to the relevant risks disclosed in the report as of June 2023, nor have any new relevant risks been identified that merit disclosure as of September 30th , 2023, according to the instructions given in paragraph 8.4.1.2.1 of Exhibit 1 «Información periódica de los emisores» in Chapter I of Title V of Part III of the Basic Legal Circular «Registro Nacional de Valores y Emisores – RNVE.
Despite the above, it should be highlighted a fact that has influenced the cost of funding expectations for colombian financial system. Since August, when the regulator's intention to adjust the regulations relating to the <<Coeficiente de Fondeo Estable Neto / Net stable funding ratio”>> (Cfen) became known, the gap between corporate debt interest rate and public debt interest rate decreased approximately 150 basis points. Finally, on September 7, 2023, the Financial Superintendence of Colombia issued Circular Externa 013 by which the weight applicable to demand deposits from 0% to 25% of supervised entities and collective investment funds without permanence agreement, while instructing entities regarding the classification of demand deposits between operational and non-operational and giving a period of 2 years to develop quantitative and qualitative methods that must complied regulatory requirements and standards.
QUANTITATIVE AND QUALITATIVE ANALYSIS OF MARKET RISK
During 3Q23, there were no material qualitative and quantitative changes in market risk in comparison with the information reported in the report as of 2Q23, that merit disclosure as of September 30th, 2023, in accordance with the instructions given in paragraph 8.4.1.1.4 of Exhibit 1 «Información periódica de los emisores» in Chapter I of Title V of Part III of the Basic Legal Circular «Registro Nacional de Valores y Emisores – RNVE
CORPORATE GOVERNANCE
In terms of Corporate Governance, during this quarter there have been no material changes that should be reported.
ESG
In terms of ESG, during this quarter there have been no material changes that should be reported.
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GRUPO AVAL ACCIONES Y VALORES S.A.
Separate Financial Statements
Below, we present a summary of our financial statements at the separate level by the end of the third quarter of 2023. The results presented are in accordance with the Colombian International Financial Reporting Standards (Colombian IFRS). The information reported below is expressed in Colombian Pesos (Ps) billion, except where otherwise indicated.
Analysis of the Statement of Financial Position
Assets
The assets are mainly represented by the interests we have in Banco de Bogotá (68.9%), Banco de Occidente (72.3%), Banco Popular (93.7%), Banco AV Villas (79.9%), AFP Porvenir (20.0%), Corficolombiana (8.7%) and 100.0% of Grupo Aval Ltd. (GAL).
Total assets as of September 30th, 2023 totaled Ps 20,249.5 billion, decreasing 1.9% or Ps 389.7 billion versus June 30th, 2023 and increasing 6.3% or Ps 1,197.9 billion versus September 30th, 2022.
The annual variation is mainly explained by the credit operation disbursed to related parties in December 2022 and which as of September 30th, 2023 amounted to Ps 1,302.4 billion.
On a quarterly basis, the variation is mainly explained by the decrease in current accounts receivable from related parties, due the reduction of Ps 261.7 billion of dividends receivable. The decrease in investments in subsidiaries and associates of 0.5% is related to the recognition of the equity method.
Liabilities
Total liabilities as of September 30th, 2023 totaled Ps 3,382.6 billion, decreasing 7.9% or Ps 291.3 billion versus June 30th, 2023 and increasing Ps 1,586.5 billion versus September 30th, 2022.
The annual variation is mainly explained by the increase of Ps 1,075.3 billion in financial obligations at amortized cost, mainly explained by the US$270 million loan entered into with Grupo Aval Limited (GAL) in December 2022 to fund a portion of the loan extended to related parties (as of September 30th, 2023, the loan with GAL amounted to Ps 1,100.1 billion) and (ii) the increase of Ps 506.2 billion in dividends payable as a result of the dividend declared by Grupo Aval on March 30th, 2023.
Regarding the quarterly variation, this is mainly explained by (i) a Ps 255.9 billion decrease of dividends payable and a decrease in the balance of dollar denominated debt with GAL, explained by the quarterly appreciation of the Colombian Peso.
The financial indebtedness of Grupo Aval did not present material changes compared to what was reported as of June 30th, 2023.
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Equity
As of September 30th, 2023, shareholders' equity was Ps 16,866.9, 0.6% lower than that reported on June 30th, 2023 and decreasing 2.3% or Ps 98.4 from the equity reported as of September 30th, 2022. This movement reflects mainly recognition of profits and equity method.
Net Income
Net income in our separate financial statements is derived primarily from equity method income from our investments and other income, net of the Holding's operating, financial and tax expenses.
During the 3Q23 we presented a net profit from continuing operations of Ps 71.4 billion, decreasing 55.2% versus 2Q23 and 82.7% versus 3Q22. The decrease in profits is explained by a lower equity method income.
Our banking subsidiaries continue to experience challenges related to higher cost of credit and on their intermediation margins as a result of the rapid increase in the cost of funds. This quarter our portfolios experienced negative returns due to high volatility in financial markets that impacted our banking subsidiaries and our pension fund.
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Information related to Grupo Aval Acciones y Valores S.A. (Holding Company) and Grupo Aval Limited
The holding company recorded a total gross indebtedness of Ps 1,649.6 billion (Ps 511.6 billion of bank debt and Ps 1,138.0 billion of bonds denominated in Colombian pesos) as of September 30th 2023. It also guarantees irrevocably and unconditionally Grupo Aval Limited’s (144A / Reg S) 2030 (USD 1.0 billion) bonds under its respective indentures. As of September 30th 2023, the total amount outstanding (including interests payable) of such bonds was USD 1.0 billion, or Ps 4,054.6 billion when converted into pesos.
The debt at Grupo Aval Limited is serviced with interest income on loans to subsidiaries and cash & cash equivalents. Grupo Aval Limited has not required, to this date, cash from Grupo Aval Acciones y Valores S.A. to fulfill its obligations. The main sources of cash to pay the debt and debt service at Grupo Aval Acciones y Valores S.A. have been the dividend income from its subsidiaries and the returns on its cash & cash equivalents.
When combined, Grupo Aval Acciones y Valores S.A. and Grupo Aval Ltd. had Ps 482.9 billion of total liquid assets, a total gross indebtedness of Ps 5,704.2 billion and a net indebtedness of Ps 5,221.3 billion as of September 30th 2023. In addition to liquid assets, has Ps 1,302.4 billion in loans with related parties and Grupo Aval Ltd. has Ps 2,117.3 billion in investments in AT1 instruments.
| Total liquid assets as of September 30, 2023 | |
| Cash and cash equivalents | 359.0 |
| Fixed income investments | 124.0 |
| Total liquid assets | 482.9 |
Maturity schedule of our combined gross debt
(Ps Billions)
As of September 30th 2023 our combined double leverage (calculated as investments in subsidiaries at book value, subordinated loans to subsidiaries, AT1 investments, and goodwill as a percentage of shareholders' equity) was 1.24x. Finally, we present an evolution of our key ratios on a combined basis:
| Debt service coverage and leverage ratios | 3Q22 | 2Q23 | 3Q23 | D | |||||
| 3Q23 vs. 2Q23 | 3Q23 vs. 3Q22 | ||||||||
| Double leverage (1) | 1.26x | 1.25x | 1.24x | -0.01 | -0.02 | ||||
| Net debt / Core earnings (2)(3) | 4.52x | 3.48x | 3.56x | 0.08 | -0.97 | ||||
| Net debt / Cash dividends (2)(3) | 12.00x | 5.14x | 5.02x | -0.13 | -6.98 | ||||
| Core Earnings / Interest Expense (2) | 1.67x | 3.43x | 3.42x | 0.00 | 1.76 | ||||
(1) Double leverage is calculated as investments in subsidiaries at book value (excluding revaluations), subordinated loans to subsidiaries and goodwill as a percentage of shareholders' equity; (2) Core earnings are defined as annualized recurring cash flow from dividends, investments and net operating income;
(3) Net debt is calculated as total gross debt minus cash and cash equivalents and fixed income investments
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Grupo Aval Acciones y Valores S.A.
Consolidated Financial Statements Under IFRS
Financial Statements Under IFRS
Information in Ps. Billions
| Consolidated Statement of Financial Position | 3Q22 | 2Q23 | 3Q23 | D | |||||
| 3Q23 vs. 2Q23 | 3Q23 vs. 3Q22 | ||||||||
| Cash and cash equivalents | 18,013.9 | 19,195.7 | 18,382.3 | -4.2% | 2.0% | ||||
| Investment and trading assets | |||||||||
| Debt securities | 4,081.5 | 5,323.3 | 5,764.4 | 8.3% | 41.2% | ||||
| Equity securities | 5,317.8 | 6,018.7 | 5,437.8 | -9.7% | 2.3% | ||||
| Derivative assets | 2,471.6 | 1,914.1 | 1,733.9 | -9.4% | -29.8% | ||||
| Trading assets | 11,870.9 | 13,256.1 | 12,936.0 | -2.4% | 9.0% | ||||
| Investments in debt securities at FVTPL (non compliant with SPPI test) | - | 1.4 | 1.4 | 3.4% | N.A | ||||
| Investments in securities at FVOCI | 22,990.1 | 23,089.9 | 23,927.0 | 3.6% | 4.1% | ||||
| Investments in debt securities at AC | 9,185.0 | 9,738.4 | 9,783.7 | 0.5% | 6.5% | ||||
| Investment securities | 32,175.0 | 32,829.6 | 33,712.1 | 2.7% | 4.8% | ||||
| Hedging derivatives assets | 56.6 | 69.4 | 34.0 | -51.1% | -40.0% | ||||
| Gross loans | |||||||||
| Commercial loans | 102,475.0 | 109,288.9 | 109,270.4 | 0.0% | 6.6% | ||||
| Commercial loans | 100,233.4 | 106,350.8 | 107,459.9 | 1.0% | 7.2% | ||||
| Interbank & overnight funds | 2,241.6 | 2,938.1 | 1,810.5 | -38.4% | -19.2% | ||||
| Consumer loans | 57,629.2 | 60,033.8 | 60,631.5 | 1.0% | 5.2% | ||||
| Mortgages loans | 16,966.6 | 17,756.5 | 18,116.6 | 2.0% | 6.8% | ||||
| Microcredit loans | 264.8 | 268.5 | 272.3 | 1.4% | 2.8% | ||||
| Total gross loans | 177,335.7 | 187,347.7 | 188,290.8 | 0.5% | 6.2% | ||||
| Loss allowance | (8,992.0) | (9,435.2) | (9,843.1) | 4.3% | 9.5% | ||||
| Total loans, net | 168,343.6 | 177,912.5 | 178,447.7 | 0.3% | 6.0% | ||||
| Other accounts receivable, net | 22,142.5 | 24,200.3 | 24,568.7 | 1.5% | 11.0% | ||||
| Non-current assets held for sale | 137.6 | 117.5 | 94.2 | -19.9% | -31.6% | ||||
| Investments in associates and joint ventures | 5,493.7 | 1,211.4 | 1,250.6 | 3.2% | -77.2% | ||||
| Own-use property, plant and equipment for own-use and given in operating lease, net | 4,708.2 | 4,597.2 | 4,529.9 | -1.5% | -3.8% | ||||
| Right-of-use assets | 1,308.1 | 1,338.9 | 1,326.0 | -1.0% | 1.4% | ||||
| Investment properties | 931.0 | 959.8 | 960.2 | 0.0% | 3.1% | ||||
| Biological assets | 178.7 | 217.6 | 222.6 | 2.3% | 24.6% | ||||
| Tangible assets | 7,125.9 | 7,113.6 | 7,038.7 | -1.1% | -1.2% | ||||
| Goodwill | 2,250.9 | 2,215.2 | 2,210.7 | -0.2% | -1.8% | ||||
| Concession arrangement rights | 12,686.8 | 13,558.6 | 13,571.9 | 0.1% | 7.0% | ||||
| Other intangible assets | 1,851.4 | 2,176.3 | 2,261.9 | 3.9% | 22.2% | ||||
| Intangible assets | 16,789.1 | 17,950.1 | 18,044.5 | 0.5% | 7.5% | ||||
| Current | 1,477.9 | 2,363.9 | 2,296.3 | -2.9% | 55.4% | ||||
| Deferred | 1,727.7 | 1,318.2 | 1,416.0 | 7.4% | -18.0% | ||||
| Income tax assets | 3,205.6 | 3,682.1 | 3,712.2 | 0.8% | 15.8% | ||||
| Other assets | 541.8 | 523.1 | 511.4 | -2.2% | -5.6% | ||||
| Total assets | 285,896.2 | 298,061.6 | 298,732.5 | 0.2% | 4.5% | ||||
| Trading liabilities | 2,295.8 | 1,859.9 | 1,258.7 | -32.3% | -45.2% | ||||
| Hedging derivatives liabilities | 4.9 | 8.9 | 116.0 | N.A. | N.A. | ||||
| Customer deposits | 166,533.2 | 180,244.5 | 180,296.3 | 0.0% | 8.3% | ||||
| Checking accounts | 25,541.5 | 23,544.5 | 22,824.9 | -3.1% | -10.6% | ||||
| Time deposits | 68,708.1 | 85,946.1 | 88,788.1 | 3.3% | 29.2% | ||||
| Savings deposits | 71,499.7 | 70,313.7 | 68,292.3 | -2.9% | -4.5% | ||||
| Other deposits | 783.8 | 440.2 | 390.9 | -11.2% | -50.1% | ||||
| Financial obligations | 70,320.4 | 66,923.9 | 68,479.5 | 2.3% | -2.6% | ||||
| Interbank borrowings and overnight funds | 11,267.0 | 13,459.9 | 15,322.5 | 13.8% | 36.0% | ||||
| Borrowings from banks and others | 26,266.6 | 23,916.9 | 23,589.1 | -1.4% | -10.2% | ||||
| Bonds issued | 29,127.8 | 25,424.8 | 24,641.6 | -3.1% | -15.4% | ||||
| Borrowings from development entities | 3,659.0 | 4,122.4 | 4,926.2 | 19.5% | 34.6% | ||||
| Total financial liabilities at amortized cost | 236,853.6 | 247,168.4 | 248,775.8 | 0.7% | 5.0% | ||||
| Legal related | 222.1 | 237.4 | 258.6 | 8.9% | 16.4% | ||||
| Other provisions | 863.3 | 790.7 | 727.3 | -8.0% | -15.8% | ||||
| Provisions | 1,085.5 | 1,028.1 | 985.8 | -4.1% | -9.2% | ||||
| Current | 189.5 | 118.7 | 223.4 | 88.2% | 17.9% | ||||
| Deferred | 4,763.2 | 5,457.9 | 5,440.8 | -0.3% | 14.2% | ||||
| Income tax liabilities | 4,952.7 | 5,576.6 | 5,664.2 | 1.6% | 14.4% | ||||
| Employee benefits | 976.0 | 842.4 | 967.9 | 14.9% | -0.8% | ||||
| Other liabilities | 8,589.6 | 10,815.3 | 10,209.7 | -5.6% | 18.9% | ||||
| Total liabilities | 254,758.1 | 267,299.6 | 267,978.1 | 0.3% | 5.2% | ||||
| Equity attributable to owners of the parent | 16,766.5 | 16,465.4 | 16,381.6 | -0.5% | -2.3% | ||||
| Non-controlling interest | 14,371.6 | 14,296.6 | 14,372.8 | 0.5% | 0.0% | ||||
| Total equity | 31,138.1 | 30,762.0 | 30,754.4 | 0.0% | -1.2% | ||||
| Total liabilities and equity | 285,896.2 | 298,061.6 | 298,732.5 | 0.2% | 4.5% | ||||
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Grupo Aval Acciones y Valores S.A.
Consolidated Financial Statements Under Full IFRS
Financial Statements Under IFRS
Information in Ps. Billions
| Consolidated Statement of income | YTD 2022 | YTD 2023 | D | 3Q22 | 2Q23 | 3Q23 | D | ||||||||
| 2023 vs. 2022 | 3Q23 vs. 2Q23 | 3Q23 vs. 3Q22 | |||||||||||||
| Interest income | |||||||||||||||
| Loan portfolio | 11,993.0 | 19,689.2 | 64.2% | 4,730.0 | 6,574.9 | 6,752.9 | 2.7% | 42.8% | |||||||
| Interests on investments in debt securities | 1,266.5 | 1,808.3 | 42.8% | 483.0 | 579.7 | 581.7 | 0.3% | 20.4% | |||||||
| Total interest income | 13,259.5 | 21,497.5 | 62.1% | 5,213.0 | 7,154.6 | 7,334.6 | 2.5% | 40.7% | |||||||
| Interest expense | |||||||||||||||
| Checking accounts | 97.6 | 172.4 | 76.7% | 39.1 | 71.6 | 38.3 | -46.4% | -1.9% | |||||||
| Time deposits | 2,450.4 | 7,399.7 | N.A. | 1,146.5 | 2,519.9 | 2,663.5 | 5.7% | 132.3% | |||||||
| Savings deposits | 2,153.2 | 4,426.1 | 105.6% | 1,073.4 | 1,343.0 | 1,491.4 | 11.1% | 38.9% | |||||||
| Total interest expenses on deposits | 4,701.2 | 11,998.1 | 155.2% | 2,259.0 | 3,934.4 | 4,193.2 | 6.6% | 85.6% | |||||||
| Interbank borrowings and overnight funds | 369.4 | 1,306.2 | N.A. | 171.7 | 494.8 | 415.5 | -16.0% | 142.0% | |||||||
| Borrowings from banks and others | 529.5 | 1,354.6 | 155.8% | 235.5 | 456.1 | 410.7 | -10.0% | 74.4% | |||||||
| Bonds issued | 1,543.8 | 1,652.7 | 7.1% | 561.1 | 561.1 | 529.0 | -5.7% | -5.7% | |||||||
| Borrowings from development entities | 142.1 | 429.2 | N.A. | 67.3 | 132.6 | 153.9 | 16.0% | 128.8% | |||||||
| Total interest expenses on financial obligations | 2,584.9 | 4,742.7 | 83.5% | 1,035.5 | 1,644.7 | 1,509.1 | -8.2% | 45.7% | |||||||
| Total interest expense | 7,286.0 | 16,740.8 | 129.8% | 3,294.5 | 5,579.1 | 5,702.2 | 2.2% | 73.1% | |||||||
| Net interest income | 5,973.5 | 4,756.7 | -20.4% | 1,918.5 | 1,575.5 | 1,632.4 | 3.6% | -14.9% | |||||||
| Impairment losses (recoveries) on financial assets | |||||||||||||||
| Loans and other accounts receivable | 2,278.7 | 3,380.9 | 48.4% | 751.8 | 1,138.6 | 1,321.8 | 16.1% | 75.8% | |||||||
| Other financial assets | 17.1 | (10.6) | -161.9% | (0.8) | (9.6) | (0.7) | -92.6% | -15.8% | |||||||
| Recovery of charged-off financial assets | (455.7) | (423.3) | -7.1% | (173.1) | (140.8) | (148.8) | 5.7% | -14.0% | |||||||
| Net impairment loss on financial assets | 1,840.1 | 2,947.1 | 60.2% | 577.9 | 988.3 | 1,172.3 | 18.6% | 102.9% | |||||||
| Net interest income, after impairment losses | 4,133.3 | 1,809.6 | -56.2% | 1,340.6 | 587.2 | 460.1 | -21.6% | -65.7% | |||||||
| Income from commissions and fees | |||||||||||||||
| Banking fees(1) | 1,785.1 | 2,022.2 | 13.3% | 636.2 | 675.3 | 682.6 | 1.1% | 7.3% | |||||||
| Trust activities | 257.5 | 350.3 | 36.0% | 88.6 | 114.7 | 112.8 | -1.7% | 27.4% | |||||||
| Pension and severance fund management | 705.5 | 773.8 | 9.7% | 202.9 | 271.4 | 252.4 | -7.0% | 24.4% | |||||||
| Bonded warehouse services | 136.9 | 142.5 | 4.1% | 49.5 | 47.5 | 47.6 | 0.2% | -3.7% | |||||||
| Income from commissions and fees | 2,885.0 | 3,288.8 | 14.0% | 977.1 | 1,108.9 | 1,095.4 | -1.2% | 12.1% | |||||||
| Expenses from commissions and fees | 730.9 | 703.2 | -3.8% | 230.4 | 225.0 | 236.0 | 4.9% | 2.4% | |||||||
| Net income from commissions and fees | 2,154.1 | 2,585.6 | 20.0% | 746.7 | 883.9 | 859.4 | -2.8% | 15.1% | |||||||
| Income from sales of goods and services | 8,940.6 | 8,145.7 | -8.9% | 3,041.1 | 2,675.8 | 2,542.4 | -5.0% | -16.4% | |||||||
| Costs and expenses from sales of goods and services | 5,313.6 | 5,725.0 | 7.7% | 1,875.5 | 2,056.6 | 1,904.6 | -7.4% | 1.5% | |||||||
| Gross profit from sales of goods and services | 3,627.0 | 2,420.7 | -33.3% | 1,165.6 | 619.2 | 637.8 | 3.0% | -45.3% | |||||||
| Total trading investment income | (172.0) | 956.3 | N.A | (42.0) | 392.1 | (26.7) | -106.8% | -36.4% | |||||||
| Total derivatives income | 1,122.5 | (2,074.7) | N.A | 798.4 | (1,175.2) | (227.2) | -80.7% | -128.5% | |||||||
| Net trading income | 950.6 | (1,118.3) | N.A | 756.4 | (783.1) | (253.9) | -67.6% | -133.6% | |||||||
| Net income from other financial instruments mandatory at FVTPL | 210.5 | 247.1 | 17.4% | 68.2 | 76.6 | 76.6 | 0.0% | 12.3% | |||||||
| Other income | |||||||||||||||
| Foreign exchange gains (losses), net | (1,285.2) | 2,002.4 | N.A | (951.9) | 1,196.3 | 317.6 | -73.5% | -133.4% | |||||||
| Net gain on sale of investments and OCI realization | (22.3) | 64.3 | N.A | (11.4) | 32.6 | 4.1 | -87.3% | -136.2% | |||||||
| Gain on the sale of non-current assets held for sale | 8.5 | 36.6 | N.A. | 2.7 | 20.6 | 15.0 | -27.0% | N.A. | |||||||
| Income from non-consolidated investments(2) | 401.3 | 411.8 | 2.6% | 104.8 | 101.8 | 95.5 | -6.3% | -8.9% | |||||||
| Net gains on asset valuations | 21.6 | (15.2) | -170.4% | 8.8 | (29.4) | 14.2 | -148.3% | 60.7% | |||||||
| Other income from operations | 355.5 | 592.7 | 66.7% | 77.8 | 194.7 | 253.8 | 30.3% | N.A. | |||||||
| Total other income | (520.7) | 3,092.6 | N.A | (769.3) | 1,516.6 | 700.2 | -53.8% | -191.0% | |||||||
| Other expenses | |||||||||||||||
| Loss on the sale of non-current assets held for sale | 0.5 | 0.5 | 6.2% | 0.1 | 0.2 | 0.1 | -71.7% | -56.3% | |||||||
| Personnel expenses | 2,079.9 | 2,306.6 | 10.9% | 726.7 | 781.9 | 751.3 | -3.9% | 3.4% | |||||||
| General and administrative expenses | 2,612.9 | 3,184.7 | 21.9% | 941.2 | 1,088.2 | 1,009.3 | -7.2% | 7.2% | |||||||
| Depreciation and amortization | 478.4 | 503.1 | 5.2% | 162.0 | 171.8 | 164.7 | -4.1% | 1.6% | |||||||
| Impairment loss on other assets | 19.8 | 0.3 | -98.3% | 7.8 | (0.1) | 0.0 | -150.6% | -99.4% | |||||||
| Other operating expenses | 117.3 | 174.4 | 48.6% | 36.8 | 47.2 | 77.9 | 65.2% | 111.5% | |||||||
| Total other expenses | 5,308.8 | 6,169.5 | 16.2% | 1,874.7 | 2,089.2 | 2,003.3 | -4.1% | 6.9% | |||||||
| Net income before income tax expense | 5,246.1 | 2,867.9 | -45.3% | 1,433.5 | 811.2 | 476.9 | -41.2% | -66.7% | |||||||
| Income tax expense | 1,745.1 | 1,059.3 | -39.3% | 547.8 | 350.6 | 176.2 | -49.7% | -67.8% | |||||||
| Net income for the period of continued operations | 3,501.0 | 1,808.5 | -48.3% | 885.7 | 460.6 | 300.7 | -34.7% | -66.1% | |||||||
| Net income for the period of discontinued operations | 1,795.6 | - | -100.0% | 44.1 | - | - | N.A | -100.0% | |||||||
| Net income for the period | 5,296.6 | 1,808.5 | -65.9% | 929.8 | 460.6 | 300.7 | -34.7% | -67.7% | |||||||
| Net income for the period attibutable to: | |||||||||||||||
| Non-controlling interest | 2,483.3 | 1,152.4 | -53.6% | 521.7 | 294.4 | 235.9 | -19.9% | -54.8% | |||||||
| Net income attributable to owners of the parent | 2,813.3 | 656.1 | -76.7% | 408.1 | 166.2 | 64.8 | -61.0% | -84.1% | |||||||
| (1) | Includes commissions on banking services, office network services, credit and debit card fees, fees on drafts, checks and checkbooks and other fees |
| (2) | Includes share of profit of equity accounted investees, net of tax, and dividend income. |
| 23 | |
Grupo Aval Acciones y Valores S.A.
Separate Financial Statements
Financial Statements Under Colombian IFRS
Information in Ps. Billions
| Separate Statement of Financial Position | 3Q22 | 2Q23 | 3Q23 | D | |||||
| 3Q23 vs. 2Q23 | 3Q23 vs. 3Q22 | ||||||||
| Current assets | |||||||||
| Cash and cash equivalents | 221.8 | 178.2 | 178.1 | -0.1% | -19.7% | ||||
| Trading securities | 0.7 | 0.2 | 0.2 | 21.1% | -65.6% | ||||
| Accounts receivable from related parties | 182.9 | 768.5 | 506.7 | -34.1% | 177.1% | ||||
| Taxes paid in advance | 7.6 | 6.0 | 4.9 | -18.0% | -35.8% | ||||
| Other accounts receivable | 0.2 | 0.0 | 0.1 | N.A. | -66.1% | ||||
| Other non-financial assets | 0.0 | 0.1 | 0.1 | 12.1% | 158.1% | ||||
| Total current assets | 413.1 | 952.9 | 690.1 | -27.6% | 67.0% | ||||
| Non-current Assets | |||||||||
| Investments in subsidiaries and associates | 18,633.9 | 18,354.9 | 18,261.8 | -0.5% | -2.0% | ||||
| Accounts receivable from related parties | 0.0 | 1,327.9 | 1,294.5 | -2.5% | N.A | ||||
| Property and equipment, net | 4.4 | 3.2 | 2.8 | -10.3% | -36.4% | ||||
| Deferred tax assets | 0.1 | 0.3 | 0.3 | 24.5% | 144.2% | ||||
| Total non-current Assets | 18,638.5 | 19,686.3 | 19,559.5 | -0.6% | 4.9% | ||||
| Total assets | 19,051.6 | 20,639.2 | 20,249.5 | -1.9% | 6.3% | ||||
| Liabilities and shareholders' equity | |||||||||
| Current liabilities | |||||||||
| Borrowings at amortized cost | 425.0 | 1,148.1 | 1,117.4 | N.A | 162.9% | ||||
| Outstanding bonds at amortized cost | 12.4 | 14.3 | 13.5 | -5.5% | 8.9% | ||||
| Accounts payable | 111.9 | 873.3 | 618.2 | -29.2% | N.A. | ||||
| Employee benefits | 2.6 | 2.4 | 2.8 | 17.1% | 7.4% | ||||
| Tax liabilities | 7.0 | 15.4 | 10.8 | -30.1% | 52.6% | ||||
| Other non-financial liabilities | 1.2 | 1.2 | 1.2 | 0.0% | 0.0% | ||||
| Total current liabilities | 560.2 | 2,054.7 | 1,763.8 | -14.2% | N.A. | ||||
| Long-term liabilities | |||||||||
| Borrowings at amortized cost | 111.4 | 494.7 | 494.3 | -0.1% | N.A. | ||||
| Outstanding bonds | 1,124.5 | 1,124.5 | 1,124.5 | 0.0% | 0.0% | ||||
| Total long-term liabilities | 1,235.9 | 1,619.2 | 1,618.8 | 0.0% | 31.0% | ||||
| Total liabilities | 1,796.1 | 3,673.9 | 3,382.6 | -7.9% | 88.3% | ||||
| Shareholders' equity | |||||||||
| Subscribed and paid capital | 23.7 | 23.7 | 23.7 | 0.0% | 0.0% | ||||
| Additional paid-in capital | 9,695.2 | 9,695.2 | 9,695.2 | 0.0% | 0.0% | ||||
| Retained earnings | 5,978.1 | 7,457.2 | 7,452.3 | -0.1% | 24.7% | ||||
| Earnings from first-time adoption | 0.0 | 0.0 | 0.0 | N.A | N.A | ||||
| Net income | 2,839.4 | 575.5 | 647.0 | 12.4% | -77.2% | ||||
| Other equity accounts | -1,281.0 | -786.4 | -951.3 | 21.0% | -25.7% | ||||
| Total shareholders' equity | 17,255.6 | 16,965.3 | 16,866.9 | -0.6% | -2.3% | ||||
| Total liabilities and shareholders' equity | 19,051.6 | 20,639.2 | 20,249.5 | -1.9% | 6.3% | ||||
Grupo Aval Acciones y Valores S.A.
Separate Financial Statements
Financial Statements Under Colombian IFRS
Information in Ps. Billions
| Separate Statement of Financial Position | YTD 2022 | YTD 2023 | D | 3Q22 | 2Q23 | 3Q23 | D | |||||||||
| 2023 vs. 2022 | 3Q23 vs. 2Q23 | 3Q23 vs. 3Q22 | ||||||||||||||
| Operating revenue | ||||||||||||||||
| Equity method income, net | 1,737.5 | 647.1 | -62.8% | 423.2 | 158.6 | 76.1 | -52.0% | -82.02% | ||||||||
| Other revenue from ordinary activities | 220.5 | 341.1 | 54.7% | 75.0 | 117.8 | 106.7 | -9.4% | 42.23% | ||||||||
| Total operating revenue | 1,957.9 | 988.2 | -49.5% | 498.2 | 276.3 | 182.8 | -33.8% | -63.3% | ||||||||
| Expenses, net | ||||||||||||||||
| Administrative expenses | 82.0 | 57.6 | -29.8% | 27.8 | 20.0 | 18.9 | -5.2% | -31.82% | ||||||||
| Other expenses | 1.0 | -0.1 | -108.2% | 0.1 | -0.1 | 0.1 | N.A | -5.26% | ||||||||
| Losses from exchange differences | 0.6 | 0.4 | -34.5% | 0.2 | 0.5 | 0.1 | -86.9% | -69.90% | ||||||||
| Operating income | 1,874.2 | 930.3 | -50.4% | 470.1 | 256.0 | 163.7 | -36.1% | -65.2% | ||||||||
| Financial expenses | 127.3 | 247.4 | 94.3% | 50.5 | 83.8 | 82.1 | -2.0% | 62.49% | ||||||||
| Earnings before taxes | 1,746.9 | 682.9 | -60.9% | 419.6 | 172.2 | 81.6 | -52.6% | -80.5% | ||||||||
| Income tax expense | 8.2 | 36.0 | N.A. | 6.3 | 12.6 | 10.2 | -19.3% | 61.62% | ||||||||
| N.A | ||||||||||||||||
| Net income from continuing operations | 1,738.7 | 647.0 | -62.8% | 413.3 | 159.6 | 71.4 | -55.2% | -82.7% | ||||||||
| Discontinued operations | ||||||||||||||||
| Equity method income from discontinued operations | 1,100.7 | 0.0 | -100.0% | 0.0 | 0.0 | 0.0 | N.A | N.A | ||||||||
| Income from discontinued operations | 1,100.7 | 0.0 | -100.0% | 0.0 | 0.0 | 0.0 | N.A | N.A | ||||||||
| Net income | 2,839.4 | 647.0 | -77.2% | 413.3 | 159.6 | 71.4 | -55.2% | -82.7% | ||||||||
| 24 | |
DEFINITIONS
Interest Earning Assets are calculated as the sum of average gross loans, average interbanks and average investments.
Gross loans excludes interbank and overnight funds.
Fee income ratio is calculated as net income from commissions and fees divided by net interest income plus net income from commissions and fees, gross profit from sales of goods and services, net trading income, net income from other financial instruments mandatory at FVTPL and total other income.
Cost of Risk calculated as Impairment loss on loans and other accounts receivable net of recoveries of charged-off assets divided by average gross loans
Net Interest Income is the difference between Total Interest Income and Total Interest Expense.
Non-controlling interest refers to the participation of minority shareholders in a subsidiary’s equity or net income.
Net Interest Margin includes net interest income plus net trading income from debt and equity investments at FVTPL divided by total average interest-earning assets.
NIM on Loans is calculated as Net Interest Income on Loans to Average loans and financial leases
NIM on Investments is calculated as Net Interest income on fixed income securities, net trading income from equity and fixed income investment securities held for trading through profit and on interbank and overnight funds to Average securities and Interbank and overnight funds
Efficiency Ratio is calculated as total other expenses divided by net interest income plus net income from commissions and fees, gross profit from sales of goods and services, net trading income, net income from other financial instruments mandatory at FVTPL and total other income
ROAA is calculated as annualized Net Income divided by average of total assets.
ROAE is calculated as Net Income attributable to Aval's shareholders divided by average attributable shareholders' equity.
| 25 | |
Investor Relations Contact
Investorrelations@grupoaval.com
Nicolás Noreña
Financial Planning and Investor Relations Senior Manager
Tel: +571 743 32 22 x 23400
E-mail: nnorena@grupoaval.com
Simón Franky
Investor Relations and Finance Director
Tel: +571 743 32 22 x 23351
E-mail: sfranky@grupoaval.com
Silvana Palacio
Financial Planning and Investor Relations Analyst
Tel: +571 743 32 22 x 23357
E-mail: mpalacio@grupoaval.com
Alejandro Mermeo
Financial Planning and Investor Relations Analyst
Tel: +571 743 32 22 x 23451
E-mail: fmermeo@grupoaval.com
| 26 | |
EXHIBIT 1
CONSOLIDATED FINANCIAL STATEMENTS
 |
KPMG S.A.S. | Phone | +57 (601) 618 8000 |
| Calle 90 No. 19c - 74 | +57 (601) 618 8100 | ||
| Bogotá D.C. - Colombia | |||
| www.kpmg.com/co |
(FREE TRANSLATION OF THE REPORT ISSUED IN SPANISH)
STATUTORY AUDITOR’S REPORT ON THE REVIEW OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION
Dear Shareholders
Grupo Aval Acciones y Valores S.A.:
Introduction
I have reviewed the attached condensed consolidated interim financial information, as of September 30, 2023, of Grupo Aval Acciones y Valores S.A. and subsidiaries (the Group), which includes:
| • | the condensed consolidated statement of financial position as of September 30, 2023; |
| • | the condensed consolidated statement of income for the three- and nine-month periods ended September 30, 2023; |
| • | the condensed consolidated statement of other comprehensive income for the three- and nine-month periods ended September 30, 2023; |
| • | the condensed consolidated statement of changes in equity for the nine-month period ended September 30, 2023; |
| • | the condensed consolidated statement of cash flows for the nine-month period ended September 30, 2023; and |
| • | the notes to the condensed financial information. |
Management is responsible for the preparation and presentation of this condensed consolidated interim financial information in accordance with International Accounting Standard 34 (IAS 34) – Intermediate Financial Information contained in the Accounting and Financial Reporting Standards accepted in Colombia. My responsibility is to express a conclusion on this condensed consolidated financial information based on my review.
Scope of the review
I have carried out my review in accordance with the International Standard for Review Engagements
2410 “Review of Interim Financial Information carried out by the Independent Auditor of the Entity”, included in the Information Assurance Standards accepted in Colombia. A review of condensed consolidated interim financial information consists of making inquiries, primarily with those responsible
|
© 2023 KPMG SAS, a Colombian joint-stock simplified corporation and member of the global organization of independent member firms of KPMG International Limited, a private English entity limited by guarantee. All rights reserved. |
KPMG S.A.S. Tax ID.: 860.000.846-4 |
|
2
for financial and accounting matters, and the application of analytical and other review procedures. The scope of a review is substantially smaller than that of an audit carried out in accordance with International Auditing Standards accepted in Colombia and, consequently, it does not allow me to obtain assurance that I have known all the significant matters that could have been identified in an audit. Therefore, I do not express an audit opinion.
Conclusion
Based on my review, nothing has come to my attention that would cause me to assume that the attached condensed interim consolidated financial information of the Group as of September 30, 2023, has not been prepared, in all material respects, in accordance with the International Accounting Standard 34 (IAS 34) – Intermediate Financial Information contained in the Accounting and Financial Reporting Standards accepted in Colombia.
(Original signed in Spanish)
Diana Alexandra Rozo Muñoz
Revisor Fiscal of Grupo Aval Acciones y Valores S.A.
Registration 120741 – T
Member of KPMG S.A.S.
November 14, 2023
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Condensed Consolidated Statement of Financial Position
(Amounts expressed in millions of Colombian pesos)
| Notes | September 30, 2023 | December 31, 2022 | ||||||||
| Assets | ||||||||||
| Cash and cash equivalents | Ps. | 18,382,277 | Ps. | 17,032,857 | ||||||
| Trading assets | 12,936,040 | 11,841,407 | ||||||||
| Investment securities | 33,712,077 | 33,674,477 | ||||||||
| Hedging derivative assets | 4 | 33,955 | 20,854 | |||||||
| Loans, net | 4 | 178,447,726 | 179,115,847 | |||||||
| Other accounts receivable, net | 4 | 24,568,728 | 23,380,573 | |||||||
| Non-current assets held for sale | 94,205 | 92,830 | ||||||||
| Investments in associates and joint ventures | 6 | 1,250,624 | 1,423,343 | |||||||
| Tangible assets | 7 | 7,038,725 | 7,235,441 | |||||||
| Concessions arrangements rights | 8 | 13,571,872 | 13,242,706 | |||||||
| Goodwill | 9 | 2,210,662 | 2,248,217 | |||||||
| Other Intangibles | 2,261,926 | 2,040,158 | ||||||||
| Income tax assets | 3,712,222 | 3,633,876 | ||||||||
| Other assets | 511,447 | 608,650 | ||||||||
| Total assets | Ps. | 298,732,486 | Ps. | 295,591,236 | ||||||
| Liabilities and equity | ||||||||||
| Liabilities | ||||||||||
| Trading liabilities | 4 | Ps. | 1,258,742 | Ps. | 1,757,606 | |||||
| Hedging derivative liabilities | 4 | 115,974 | 3,568 | |||||||
| Customer deposits | 4 | 180,296,272 | 173,341,149 | |||||||
| Financial obligations | 4 | 68,479,518 | 72,116,775 | |||||||
| Provisions | 11 | 985,834 | 1,227,171 | |||||||
| Income tax liabilities | 5,664,186 | 5,291,487 | ||||||||
| Employee benefits | 12 | 967,872 | 890,019 | |||||||
| Other liabilities | 13 | 10,209,727 | 10,141,802 | |||||||
| Total liabilities | Ps. | 267,978,125 | Ps. | 264,769,577 | ||||||
| Equity | ||||||||||
| Owners of the parent: | ||||||||||
| Subscribed and paid-in capital | 14 | Ps. | 23,744 | Ps. | 23,744 | |||||
| Additional paid-in capital | 9,571,374 | 9,571,374 | ||||||||
| Retained earnings | 7,641,584 | 8,018,417 | ||||||||
| Other comprehensive income | (855,117 | ) | (1,146,565 | ) | ||||||
| Equity attributable to owners of the parent | 16,381,585 | 16,466,970 | ||||||||
| Non-controlling interest | 14,372,776 | 14,354,689 | ||||||||
| Total equity | 30,754,361 | 30,821,659 | ||||||||
| Total liabilities and equity | Ps. | 298,732,486 | Ps. | 295,591,236 | ||||||
The accompanying notes are an integral part of the consolidated financial statements.
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Condensed Consolidated Statement of Income
(Amounts expressed in millions of Colombian pesos)
| For the three-months periods ended September 30, | For the nine-months periods ended September 30, | |||||||||||||||||
| Notes | 2023 | 2022 | 2023 | 2022 (1) | ||||||||||||||
| Continuing operations | ||||||||||||||||||
| Interest income | 4 | Ps. | 7,334,615 | Ps. | 5,212,993 | Ps. | 21,497,512 | Ps. | 13,259,458 | |||||||||
| Interest expense | 4 | (5,702,244 | ) | (3,294,506 | ) | (16,740,831 | ) | (7,286,005 | ) | |||||||||
| Net interest income | 1,632,371 | 1,918,487 | 4,756,681 | 5,973,453 | ||||||||||||||
| Net impairment loss on financial assets | (1,172,295 | ) | (577,893 | ) | (2,947,070 | ) | (1,840,115 | ) | ||||||||||
| Net interest income, after impairment losses | 460,076 | 1,340,594 | 1,809,611 | 4,133,338 | ||||||||||||||
| Income from commissions and fees | 1,095,447 | 977,114 | 3,288,843 | 2,885,007 | ||||||||||||||
| Expenses from commissions and fees | (236,018 | ) | (230,389 | ) | (703,222 | ) | (730,913 | ) | ||||||||||
| Net income from commissions and fees | 16 | 859,429 | 746,725 | 2,585,621 | 2,154,094 | |||||||||||||
| Income from sales of goods and services | 2,542,426 | 3,041,104 | 8,145,704 | 8,940,595 | ||||||||||||||
| Costs and expenses of sales goods and services | (1,904,594 | ) | (1,875,536 | ) | (5,725,008 | ) | (5,313,633 | ) | ||||||||||
| Gross profit from sales of goods and services | 16 | 637,832 | 1,165,568 | 2,420,696 | 3,626,962 | |||||||||||||
| Net trading loss | 17 | (253,897 | ) | 756,430 | (1,118,322 | ) | 950,577 | |||||||||||
| Net income from other financial instruments mandatorily at fair value through profit or loss | 76,579 | 68,207 | 247,107 | 210,544 | ||||||||||||||
| Other income | 18 | 700,171 | (725,205 | ) | 3,092,614 | (322,590 | ) | |||||||||||
| Other expenses | 18 | (2,003,292 | ) | (1,874,725 | ) | (6,169,471 | ) | (5,308,764 | ) | |||||||||
| Net income before tax expense | 476,898 | 1,477,594 | 2,867,856 | 5,444,161 | ||||||||||||||
| Income tax expense | 10 | (176,223 | ) | (547,826 | ) | (1,059,335 | ) | (1,745,067 | ) | |||||||||
| Net income from continuing operations | Ps. | 300,675 | Ps. | 929,768 | Ps. | 1,808,521 | Ps. | 3,699,094 | ||||||||||
| Discontinued operations | ||||||||||||||||||
| Net income from discontinued operations, net of tax | (1) | Ps. | - | Ps. | - | Ps. | - | Ps. | 1,597,512 | |||||||||
| Net income | Ps. | 300,675 | Ps. | 929,768 | Ps. | 1,808,521 | Ps. | 5,296,606 | ||||||||||
| Net income attributable to owners of the parent | ||||||||||||||||||
| Net income for the period from continuing operations | 64,803 | 408,104 | 656,104 | 1,715,223 | ||||||||||||||
| Net income for the period from discontinued operations, net of tax | (1) | - | - | - | 1,098,073 | |||||||||||||
| Owners of the parent | Ps. | 64,803 | Ps. | 408,104 | Ps. | 656,104 | Ps. | 2,813,296 | ||||||||||
| Net income attributable to non-controlling interests | ||||||||||||||||||
| Net income for the period from continuing operations | 235,872 | 521,664 | 1,152,417 | 1,983,871 | ||||||||||||||
| Net income for the period from discontinued operations, net of tax | (1) | - | - | - | 499,439 | |||||||||||||
| Non-controlling interests | Ps. | 235,872 | Ps. | 521,664 | Ps. | 1,152,417 | Ps. | 2,483,310 | ||||||||||
| Net Income | Ps. | 300,675 | Ps. | 929,768 | Ps. | 1,808,521 | Ps. | 5,296,606 | ||||||||||
| Net income per share basic and diluted (in Colombian pesos) | 14 | Ps. | 2.73 | Ps. | 17.19 | Ps. | 27.63 | Ps. | 122.64 | |||||||||
(1) See note 1.1 “Discontinued operations of BAC Holding”.
The accompanying notes are an integral part of the consolidated financial statements.
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Condensed Consolidated Statement of Other Comprehensive Income
(Amounts expressed in millions of Colombian pesos)
| For the three-months periods ended September 30, | For the nine-months periods ended September 30, | |||||||||||||||||
| Notes | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
| Net income | Ps. | 300,675 | Ps. | 929,768 | Ps. | 1,808,521 | Ps. | 5,296,606 | ||||||||||
| Other comprehensive income | ||||||||||||||||||
| Items that may be reclassified to profit or loss | ||||||||||||||||||
| Net gain (loss) on hedges of net investments in foreign operations | ||||||||||||||||||
| Foreign currency translation differences from hedged foreign operations | 5 | (99,585 | ) | 745,633 | (605,748 | ) | (6,086,883 | ) | ||||||||||
| Hedging derivative instrument | 5 | 0 | (282 | ) | 0 | 4,051,547 | ||||||||||||
| Hedging non-derivative instrument | 5 | 95,796 | (628,067 | ) | 577,976 | 1,961,299 | ||||||||||||
| Cash flow hedges | (6,274 | ) | (84 | ) | (4,520 | ) | (4,326 | ) | ||||||||||
| Foreign currency translation differences from unhedged foreign operations | (50,319 | ) | 132,908 | (283,478 | ) | 1,279,520 | ||||||||||||
| Investments in associates and joint ventures | 9,894 | 75,081 | (16,631 | ) | (53,346 | ) | ||||||||||||
| Unrealized (losses) gains on securities at FVOCI | (207,829 | ) | (485,639 | ) | 1,030,860 | (2,398,931 | ) | |||||||||||
| Income tax | 7,513 | 295,770 | (555,775 | ) | (1,731,808 | ) | ||||||||||||
| (250,804 | ) | 135,320 | Ps. | 142,684 | Ps. | (2,982,928 | ) | |||||||||||
| Items that will not be reclassified to profit or loss | ||||||||||||||||||
| Transfer from owner-occupied property to investment property | 145 | 598 | 145 | 797 | ||||||||||||||
| Gains (Losses) unrealized on equity securities at FVOCI | (40,227 | ) | (78,640 | ) | 37,235 | (361,586 | ) | |||||||||||
| Actuarial (losses) gains from defined benefit pension plans | 1,853 | (83 | ) | (18,071 | ) | 80,326 | ||||||||||||
| Income tax | (2,641 | ) | (707 | ) | 4,189 | (31,952 | ) | |||||||||||
| (40,870 | ) | (78,832 | ) | Ps. | 23,498 | Ps. | (312,415 | ) | ||||||||||
| Other comprehensive income, net of taxes | (291,674 | ) | 56,488 | 166,182 | (3,295,343 | ) | ||||||||||||
| Total comprehensive income, net of taxes | Ps. | 9,001 | Ps. | 986,256 | Ps. | 1,974,703 | Ps. | 2,001,263 | ||||||||||
| Total comprehensive income for the periods attributable to: | ||||||||||||||||||
| Owners of the parent | Ps. | (76,139 | ) | Ps. | 370,215 | 947,552 | 523,871 | |||||||||||
| Non-controlling interest | 85,140 | 616,041 | 1,027,151 | 1,477,392 | ||||||||||||||
| Ps. | 9,001 | Ps. | 986,256 | Ps. | 1,974,703 | Ps. | 2,001,263 | |||||||||||
The accompanying notes are an integral part of the consolidated financial statements.
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Consolidated Statement of Changes in Equity for the nine-month periods
ended September 30, 2023 and 2022
(Amounts expressed in millions of Colombian pesos)
| Subscribed and paid-in capital | Additional paid – in capital | Appropriated retained earnings | Other comprehensive income (OCI) | Equity attributable to owners of the parent | Non-controlling interest (NCI) | Total equity | ||||||||||||||||||||||
| Balance as of December 31, 2021 | Ps. | 22,281 | Ps. | 8,490,799 | Ps. | 13,383,391 | Ps. | 1,117,182 | Ps. | 23,013,653 | Ps. | 16,457,994 | Ps. | 39,471,647 | ||||||||||||||
| Issuance of shares | 1,463 | 1,082,307 | — | — | 1,083,770 | 572,131 | 1,655,901 | |||||||||||||||||||||
| Dividends declared in cash | — | — | (1,083,770 | ) | — | (1,083,770 | ) | (572,007 | ) | (1,655,777 | ) | |||||||||||||||||
| Dividends declared in cash | — | — | (119,405 | ) | — | (119,405 | ) | (550,390 | ) | (669,795 | ) | |||||||||||||||||
| Equity transactions | — | (9,012 | ) | — | — | (9,012 | ) | 9,012 | — | |||||||||||||||||||
| Spin Off(1) | — | — | (6,638,961 | ) | — | (6,638,961 | ) | (3,019,613 | ) | (9,658,574 | ) | |||||||||||||||||
| Liquidation of entitites | — | — | (422 | ) | — | (422 | ) | (379 | ) | (801 | ) | |||||||||||||||||
| Effect of realization of equity instruments(1) | — | — | (5,432 | ) | — | (5,432 | ) | (2,368 | ) | (7,800 | ) | |||||||||||||||||
| Other comprehensive income | — | — | — | (2,289,425 | ) | (2,289,425 | ) | (1,005,918 | ) | (3,295,343 | ) | |||||||||||||||||
| Withholding Tax over dividends | — | — | 2,250 | — | 2,250 | (197 | ) | 2,053 | ||||||||||||||||||||
| Net income | — | — | 2,813,296 | — | 2,813,296 | 2,483,310 | 5,296,606 | |||||||||||||||||||||
| Balance as of September 30, 2022 | Ps. | 23,744 | Ps. | 9,564,094 | Ps. | 8,350,947 | Ps. | (1,172,243 | ) | Ps. | 16,766,542 | Ps. | 14,371,575 | Ps. | 31,138,117 | |||||||||||||
| Subscribed and paid-in capital | Additional paid – in capital | Appropriated retained earnings | Other comprehensive income (OCI) | Equity attributable to owners of the parent | Non-controlling interest (NCI) | Total equity | ||||||||||||||||||||||
| Balance as of December 31, 2022 | Ps. | 23,744 | Ps. | 9,571,374 | Ps. | 8,018,417 | Ps. | (1,146,565 | ) | Ps. | 16,466,970 | Ps. | 14,354,689 | Ps. | 30,821,659 | |||||||||||||
| Issuance of shares | — | — | — | — | — | — | — | |||||||||||||||||||||
| Dividends declared in cash | — | — | (1,025,718 | ) | — | (1,025,718 | ) | (1,014,789 | ) | (2,040,507 | ) | |||||||||||||||||
| Other comprehensive income | — | — | — | 291,448 | 291,448 | (125,266 | ) | 166,182 | ||||||||||||||||||||
| Disposal of subsidiary | — | — | (3,603 | ) | — | (3,603 | ) | (4,686 | ) | (8,289 | ) | |||||||||||||||||
| Effect of carrying out OCI to retained | — | — | (1,785 | ) | — | (1,785 | ) | (68 | ) | (1,853 | ) | |||||||||||||||||
| Withholding Tax over dividends | — | — | (1,831 | ) | — | (1,831 | ) | 10,479 | 8,648 | |||||||||||||||||||
| Net income | — | — | 656,104 | — | 656,104 | 1,152,417 | 1,808,521 | |||||||||||||||||||||
| Balance as of September 30, 2023 | Ps. | 23,744 | Ps. | 9,571,374 | Ps. | 7,641,584 | Ps. | (855,117 | ) | Ps. | 16,381,585 | Ps. | 14,372,776 | Ps. | 30,754,361 | |||||||||||||
| (1) | See note 1.1 “Discontinued operations of BAC Holding”. |
The accompanying notes are an integral part of the consolidated financial statements.
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Condensed Consolidated Statement of Cash Flows for the nine-month periods
ended September 30, 2023 and 2022
(Amounts expressed in millions of Colombian pesos)
| Notes | September 30, 2023 | September 30, 2022 (1) | ||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net income before income tax | Ps. | 2,867,856 | Ps. | 5,444,161 | ||||||||
| Reconciliation of net income before taxes and net cash provided by operating activities: | ||||||||||||
| Depreciation and amortization | 16-18 | 849,999 | 804,734 | |||||||||
| Impairment losses of loans and receivables, net | 4-16 | 3,425,165 | 2,315,825 | |||||||||
| Net income in concession agreements | (2,927,644 | ) | (3,919,697 | ) | ||||||||
| Net interest income | (4,756,681 | ) | (5,973,453 | ) | ||||||||
| Sales of non-current assets held for sale, net | (36,140 | ) | (8,032 | ) | ||||||||
| Gain on sales of tangible assets | (247,979 | ) | (25,990 | ) | ||||||||
| Foreign exchange losses | 18 | (2,002,449 | ) | 1,285,238 | ||||||||
| Share of profit of equity accounted investees, net of tax | 18 | (287,405 | ) | (488,670 | ) | |||||||
| Dividends caused | 18 | (124,371 | ) | (110,737 | ) | |||||||
| Fair value adjustments on: | ||||||||||||
| Derivatives | 17 | 2,074,653 | (1,122,527 | ) | ||||||||
| Investment property | 18,260 | (22,214 | ) | |||||||||
| Biological assets | (11,155 | ) | (24,761 | ) | ||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Derivatives | (2,189,605 | ) | 1,041,740 | |||||||||
| Trading assets | (824,060 | ) | 597,080 | |||||||||
| Accounts receivable | (247,229 | ) | (824,721 | ) | ||||||||
| Other assets | (62,913 | ) | 30,356 | |||||||||
| Other liabilities and provisions | (900,440 | ) | (505,006 | ) | ||||||||
| Employee benefit | 61,428 | 78,865 | ||||||||||
| Loan portfolio | (7,316,096 | ) | (18,213,120 | ) | ||||||||
| Customer deposits | 11,187,079 | 13,829,890 | ||||||||||
| Interbank borrowings and overnight funds | 6,194,598 | 859,219 | ||||||||||
| Borrowings from development entities | (231,881 | ) | 24,226 | |||||||||
| Borrowings from banks | (2,734,332 | ) | 5,479,283 | |||||||||
| Interest received | 19,260,276 | 11,728,385 | ||||||||||
| Interest paid | (15,825,184 | ) | (6,804,819 | ) | ||||||||
| Lease interest | (128,779 | ) | (109,324 | ) | ||||||||
| Income tax payments | (1,905,276 | ) | (1,427,741 | ) | ||||||||
| Net cash provided by operating activities | Ps. | 3,179,695 | Ps. | 3,938,190 | ||||||||
| Cash flows from investing activities: | ||||||||||||
| Purchases of amortized cost financial assets | Ps. | (5,623,319 | ) | Ps. | (5,217,602 | ) | ||||||
| Redemptions of amortized cost financial assets | 5,915,885 | 4,954,061 | ||||||||||
| Purchases of FVOCI | (14,989,912 | ) | (6,874,598 | ) | ||||||||
| Proceeds from sales of FVOCI | 16,009,190 | 8,943,576 | ||||||||||
| Acquisition of associates investment and joint ventures | — | (5,333 | ) | |||||||||
| Purchases tangible assets | (384,056 | ) | (315,887 | ) | ||||||||
| Proceeds from sales of property, plant and equipment | 102,372 | 144,680 | ||||||||||
| Proceeds from sales of non-current assets held for sale | 39,478 | 26,588 | ||||||||||
| Additions of concession arrangement rights | 956,122 | 76,233 | ||||||||||
| Additions of other intangible assets | (473,147 | ) | (347,518 | ) | ||||||||
| Dividends received | 365,769 | 414,454 | ||||||||||
| Disposal of subsidiaries | (3,070 | ) | (17,570,390 | ) | ||||||||
| Net cash provided (used) in by investing activities | Ps. | 1,915,312 | Ps. | (15,771,736 | ) | |||||||
| Cash flows from financing activities: | ||||||||||||
| Dividends paid to shareholders | Ps. | (511,523 | ) | Ps. | (412,378 | ) | ||||||
| Dividends paid to non-controlling interest | (621,713 | ) | (478,227 | ) | ||||||||
| Issuance of debt securities | 2,597,143 | 558,775 | ||||||||||
| Payment of outstanding debt securities | (3,654,903 | ) | (5,568,959 | ) | ||||||||
| Leases | (310,855 | ) | (282,041 | ) | ||||||||
| Issuance of shares | — | 123 | ||||||||||
| Net cash used by financing activities | Ps. | (2,501,851 | ) | Ps. | (6,182,707 | ) | ||||||
| Effect of foreign currency changes on cash and equivalents | (1,243,736 | ) | 780,929 | |||||||||
| Decrease in cash and cash equivalents in joint operations | — | (1,393,602 | ) | |||||||||
| Increase (decrease) in cash and cash equivalents | 1,349,420 | (18,628,926 | ) | |||||||||
| Cash and cash equivalents at beginning of period | Ps. | 17,032,857 | Ps. | 36,642,829 | ||||||||
| Cash and cash equivalents at end of period | Ps. | 18,382,277 | Ps. | 18,013,903 | ||||||||
| (1) | See note 1.1 “Discontinued operations of BAC Holding”. |
The accompanying notes are an integral part of the consolidated financial statements.
EXHIBIT 2
SEPARATE FINANCIAL STATEMENTS
| |
KPMG S.A.S. | Phone | +57 (601) 618 8000 |
| Calle 90 No. 19c - 74 | +57 (601) 618 8100 | ||
| Bogotá D.C. - Colombia | |||
| www.kpmg.com/co |
(FREE TRANSLATION OF THE REPORT ISSUED IN SPANISH)
STATUTORY AUDITOR’S REPORT ON THE REVIEW OF THE SEPARATE CONDENSED INTERIM FINANCIAL INFORMATION
Dear Shareholders
Grupo Aval Acciones y Valores S.A.:
Introduction
I have reviewed the attached condensed separate interim financial information as of September 30, 2023, of Grupo Aval Acciones y Valores S.A. (the Company), which includes:
| • | the condensed separate statement of financial position as of September 30, 2023; |
| • | the condensed separate statement of income for the three- and nine-month periods ended September 30, 2023; |
| • | the condensed separate statement of other comprehensive income for the three- and nine-month periods ended September 30, 2023; |
| • | the separate condensed statement of changes in equity for the nine-month period ended September 30, 2023; |
| • | the condensed separate statement of cash flows for the nine-month period ended September 30, 2023; and |
| • | the notes to the condensed financial information. |
Management is responsible for the preparation and presentation of this condensed separate interim financial information in accordance with International Accounting Standard 34 (IAS 34) – Intermediate Financial Information contained in the Accounting and Financial Reporting Standards accepted in Colombia. My responsibility is to express a conclusion on this condensed separate financial information based on my review.
Scope of the review
I have carried out my review in accordance with the International Standard for Review Engagements 2410 “Review of Interim Financial Information carried out by the Independent Auditor of the Entity”, included in the Information Assurance Standards accepted in Colombia. A review of condensed separate interim financial information consists of making inquiries, primarily with those responsible for financial
|
© 2023 KPMG SAS, a Colombian joint-stock simplified corporation and member of the global organization of independent member firms of KPMG International Limited, a private English entity limited by guarantee. All rights reserved. |
KPMG S.A.S. Tax ID.: 860.000.846-4 |
|
2
and accounting matters, and the application of analytical and other review procedures. The scope of a review is substantially smaller than that of an audit carried out in accordance with International Auditing Standards accepted in Colombia and, consequently, it does not allow me to obtain assurance that I have known all the significant matters that could have been identified in an audit. Therefore, I do not express an audit opinion.
Conclusion
Based on my review, nothing has come to my attention that would cause me to assume that the accompanying condensed separate interim financial information of the Company as of September 30, 2023, has not been prepared, in all material respects, in accordance with International Accounting Standard 34 (IAS 34) – Interim Financial Reporting contained in the Accounting and Financial Reporting Standards accepted in Colombia.
(Original signed in Spanish)
Diana Alexandra Rozo Muñoz
Revisor Fiscal of Grupo Aval Acciones y Valores S.A.
Registration 120741 – T
Member of KPMG S.A.S.
November 14, 2023
GRUPO AVAL ACCIONES Y VALORES S.A.
Statement of financial position
For the period ended as of September 30th 2023 and December 31st 2022
(Stated in millions of Colombian pesos)
| September 30th | December 31st | |||||||||
| Notes | 2023 | 2022 | ||||||||
| Assets | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | 5 | Ps. | 178,056 | Ps. | 67,439 | |||||
| Trading securities | 4 | 241 | 764 | |||||||
| Accounts receivable from related parties | 6 | 506,717 | 96,081 | |||||||
| Taxes paid in advance | 6 | 4,878 | 7,577 | |||||||
| Other accounts receivable | 6 | 56 | 161 | |||||||
| Other non-financial assets | 111 | 52 | ||||||||
| Total current assets | 690,059 | 172,074 | ||||||||
| Non-current Assets | ||||||||||
| Investments in subsidiaries and associates | 7 | Ps. | 18,261,794 | Ps. | 18,361,916 | |||||
| Accounts receivable from related parties | 6 | 1,294,515 | 1,498,754 | |||||||
| Property and equipment, net | 8 | 2,827 | 4,083 | |||||||
| Deferred tax assets | 315 | 127 | ||||||||
| Total non-current Assets | 19,559,451 | 19,864,880 | ||||||||
| Total assets | 20,249,510 | Ps. | 20,036,954 | |||||||
| Liabilities and shareholders' equity | ||||||||||
| Current liabilities | ||||||||||
| Borrowings at amortized cost | 10 | Ps. | 1,117,397 | Ps. | 20,255 | |||||
| Outstanding bonds at amortized cost | 10 | 13,490 | 14,093 | |||||||
| Accounts payable | 12 | 618,159 | 106,101 | |||||||
| Employee benefits | 11 | 2,789 | 2,486 | |||||||
| Tax liabilities | 12 | 10,757 | 11,920 | |||||||
| Other non-financial liabilities | 12 | 1,214 | 1,214 | |||||||
| Total current liabilities | 1,763,806 | 156,069 | ||||||||
| Long-term liabilities | ||||||||||
| Borrowings at amortized cost | 10 | Ps. | 494,266 | Ps. | 1,794,089 | |||||
| Outstanding bonds | 1,124,520 | 1,124,520 | ||||||||
| Total long-term liabilities | 1,618,786 | 2,918,609 | ||||||||
| Total liabilities | Ps. | 3,382,592 | Ps. | 3,074,678 | ||||||
| Shareholders' equity | ||||||||||
| Subscribed and paid capital | 13 | Ps. | 23,743 | Ps. | 23,743 | |||||
| Additional paid-in capital | 13 | 9,695,243 | 9,695,243 | |||||||
| Retained earnings | 13 | 7,452,276 | 5,939,430 | |||||||
| Net income | 646,986 | 2,541,179 | ||||||||
| Other equity accounts | 13 | (951,330 | ) | (1,237,319 | ) | |||||
| Total shareholders' equity | Ps. | 16,866,918 | Ps. | 16,962,276 | ||||||
| Total liabilities and shareholders' equity | Ps. | 20,249,510 | Ps. | 20,036,954 | ||||||
GRUPO AVAL ACCIONES Y VALORES S.A.
Statement of income
(Stated in millions of Colombian pesos, except earnings per share)
| For the quarter period | For the accumulated period | ||||||||
| September 30th | September 30th | September 30th | September 30th | ||||||
| 2023 | 2022 | 2023 | 2022 | ||||||
| Notes | |||||||||
| Operating revenue | |||||||||
| Equity method income, net | 15 | Ps. | 76,094 | Ps. | 423,189 | Ps. | 647,143 | Ps. | 1,737,481 |
| Other revenue from ordinary activities | 15 | 106,725 | 75,035 | 341,101 | 220,458 | ||||
| Total operating revenue | Ps. | 182,819 | Ps. | 498,224 | Ps. | 988,244 | Ps. | 1,957,939 | |
| Expenses, net | |||||||||
| Administrative expenses | 16 | Ps. | 18,930 | Ps. | 27,765 | Ps. | 57,601 | Ps. | 82,044 |
| Other expenses | 16 | 126 | 133 | (85) | 1,039 | ||||
| revenue from exchange differences | 16 | (62) | (206) | (404) | (617) | ||||
| Operating income | 163,701 | 470,120 | Ps. | 930,324 | Ps. | 1,874,239 | |||
| Financial expenses | 16 | Ps. | 82,069 | Ps. | 50,507 | 247,387 | 127,343 | ||
| Earnings before taxes | 81,632 | 419,613 | Ps. | 682,937 | Ps. | 1,746,896 | |||
| Income tax expense | Ps. | 10,185 | Ps. | 6,302 | 35,951 | 8,184 | |||
| Net income from continuing operations | 71,447 | 413,311 | Ps. | 646,986 | Ps. | 1,738,712 | |||
| Discontinued operations | Ps. | Ps. | |||||||
| Equity method income from discontinued operations | 15 | - | - | - | 1,100,730 | ||||
| Income from discontinued operations | Ps. | - | Ps. | - | Ps. | - | Ps. | 1,100,730 | |
| Net income | 71,447 | 413,311 | Ps. | 646,986 | Ps. | 2,839,442 | |||
| Net income per share from continuing operations | 3.01 | 17.41 | Ps. | 27.25 | Ps. | 75.80 | |||
| Net income per share from discontinued operations | - | Ps. | - | Ps. | 47.98 | ||||
GRUPO AVAL ACCIONES Y VALORES S.A.
Statement of Other Comprehensive Income
(Stated in millions of Colombian pesos)
IFRS
| For the quarter period | For the accumulated period | |||||||||||||||
| September 30th | September 30th | September 30th | September 30th | |||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net income | Ps. | 71,447 | 413,311 | 646,986 | Ps. | 2,839,442 | ||||||||||
| Other comprehensive income (OCI), net of taxes | ||||||||||||||||
| Participation in other comprehensive income reported using the equity method | (164,890 | ) | (28,935 | ) | 285,989 | (2,294,576 | ) | |||||||||
| Comprehensive income, net | Ps. | (93,443 | ) | 384,376 | 932,975 | Ps. | 544,866 | |||||||||
GRUPO AVAL ACCIONES Y VALORES S.A.
Statement of shareholders' equity
For the period ended as of September 30th 2023
(Stated in million of Colombian pesos)
| Retained earnings (losses) | ||||||||||||||||||||||||||||||||||||
| Subscribed and paid capital | Paid-in Capital | Legal reserve | Occasional reserve | Retained earnings (losses) | Operations with shareholders | Net Income | Other equity accounts | Shareholders' equity | ||||||||||||||||||||||||||||
| Balance as of December 31 st. 2021 | Ps. | 22,281 | Ps. | 8,612,936 | Ps. | 11,140 | Ps. | 10,706,543 | Ps. | (393,822 | ) | - | Ps. | 3,502,758 | Ps. | 1,013,600 | Ps. | 23,475,436 | ||||||||||||||||||
| Constitution of reserves for future distributions net income 2021 | 3,502,758 | (3,502,758 | ) | - | ||||||||||||||||||||||||||||||||
| Reserve appropriation | (188,208 | ) | 188,208 | - | ||||||||||||||||||||||||||||||||
| To distribute a stock dividend of $ 54 per share , over 22,281,017,159 shares outstanding as of Cecember 31st 2021. These dividends will be paid at the rate of 1 share for each 13.74233 common or preferential shares as of December 31st, 2021. | (1,203,175 | ) | (1,203,175 | ) | ||||||||||||||||||||||||||||||||
| Issuance of shares | 1,462 | 1,082,307 | 1,083,769 | |||||||||||||||||||||||||||||||||
| Application of the equity method | (1,576,358 | ) | (1,576,358 | ) | ||||||||||||||||||||||||||||||||
| Application of the equity method (Spin-off) | (6,644,277 | ) | (718,218 | ) | (7,362,495 | ) | ||||||||||||||||||||||||||||||
| Witholding tax on dividends | (1,020 | ) | (1,020 | ) | ||||||||||||||||||||||||||||||||
| Net Income | 2,839,442 | 2,839,442 | ||||||||||||||||||||||||||||||||||
| Balance as of September 30th 2022 | Ps. | 23,743 | Ps. | 9,695,243 | Ps. | 11,140 | Ps. | 12,817,918 | Ps. | (206,634 | ) | (6,644,277 | ) | Ps. | 2,839,442 | Ps. | (1,280,976 | ) | Ps. | 17,255,599 | ||||||||||||||||
| Balance as of December 31st 2022 | Ps. | 23,743 | Ps. | 9,695,243 | Ps. | 11,872 | Ps. | 12,817,186 | Ps. | (245,351 | ) | (6,644,277 | ) | Ps. | 2,541,179 | Ps. | (1,237,319 | ) | Ps. | 16,962,276 | ||||||||||||||||
| Constitution of reserves for future distributions net income 2022 | 2,541,179 | (2,541,179 | ) | - | ||||||||||||||||||||||||||||||||
| Reserve appropriation | (7,111,764 | ) | 467,487 | 6,644,277 | - | |||||||||||||||||||||||||||||||
| To distribute a cash dividend of $ 3.60 per share per month from April 2023 to March 2024 including those two months, over 23.743.475.754 outstanding shares as of the date of this meeting. | (1,025,718 | ) | (1,025,718 | ) | ||||||||||||||||||||||||||||||||
| Application of the equity method | 285,989 | 285,989 | ||||||||||||||||||||||||||||||||||
| Effect of carrying out OCI to retained (Equity method) | (1,948 | ) | (1,948 | ) | ||||||||||||||||||||||||||||||||
| Witholding tax on dividends | (667 | ) | (667 | ) | ||||||||||||||||||||||||||||||||
| Net Income | 646,986 | 646,986 | ||||||||||||||||||||||||||||||||||
| Balance as of September 30th 2023 | Ps. | 23,743 | Ps. | 9,695,243 | Ps. | 11,872 | Ps. | 7,220,883 | Ps. | 219,521 | 0 | Ps. | 646,986 | Ps. | (951,330 | ) | Ps. | 16,866,918 | ||||||||||||||||||
GRUPO AVAL ACCIONES Y VALORES S.A.
Individual statement of cash flow
For the period ended as of September 30th 2023 and 2022
(Stated in millions of Colombian pesos)
Cash flow from operating activity:
For the accumulated period
| September 30th | September 30th | |||||||||
| Notes | 2023 | 2022 | ||||||||
| Cash flow from operating activity: | ||||||||||
| Net Income | 646,986 | Ps. | 2,839,442 | |||||||
| Adjustments to reconcile net profit with net cash used in operating activities | ||||||||||
| Income tax expense | 35,951 | Ps. | 8,184 | |||||||
| Impairment of property and equipment | - | 5 | ||||||||
| Property and equipment depreciation and amortization | 16 | 1,277 | 1,317 | |||||||
| Impairment of receivables | 6 | (264 | ) | - | ||||||
| Equity method income | 15 | (647,143 | ) | (1,737,481 | ) | |||||
| Equity method income from discontinued operations | 15 | - | (1,100,730 | ) | ||||||
| Changes in operating assets and liabilities: | ||||||||||
| Decrease (Increase) in trading securities | 523 | (654 | ) | |||||||
| Decrease in receivables | - | 825,434 | ||||||||
| Acquisition of permanent investments | - | (823,597 | ) | |||||||
| Increase in interest receivables | (495 | ) | - | |||||||
| Decrease in other assets and liabilities, net: prepaid taxes, prepaid expenses; taxes, accounts payable, employee liabilities, estimated liabilities and provisions. | (34,690 | ) | (28,686 | ) | ||||||
| Increase in interests payable | 2,360 | 9,789 | ||||||||
| Interest payment on lease agreements (IFRS 16) | 16 | (386 | ) | (180 | ) | |||||
| Dividends received by subsidiaries | 619,053 | 470,944 | ||||||||
| Income tax paid | - | (3,354 | ) | |||||||
| Net cash used in operating activities | 623,172 | Ps. | 460,433 | |||||||
| Cash flow from investing activities: | ||||||||||
| Acquisition of property and equipment | (111 | ) | (73 | ) | ||||||
| Net cash used in investing activities | (111 | ) | Ps. | (73 | ) | |||||
| Cash flow from financing activities: | ||||||||||
| Dividends paid | (511,523 | ) | (412,378 | ) | ||||||
| Payment of liabilities arising from lease agreements | 10 | (921 | ) | (1,001 | ) | |||||
| Net cash from financing activities | (512,444 | ) | Ps. | (413,379 | ) | |||||
| Change in cash and cash equivalents | 110,617 | 46,981 | ||||||||
| Cash and cash equivalents as of the beginning of the period | 67,439 | 174,784 | ||||||||
| Cash and cash equivalents as of the end of the period | 178,056 | Ps. | 221,765 | |||||||
| Additional information: | ||||||||||
| Payment of Interest | 245,388 | Ps. | 117,637 | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: November 15, 2023
| GRUPO AVAL ACCIONES Y VALORES S.A. | |||||
| By: | /s/ Jorge Adrián Rincón Plata | ||||
| Name: | Jorge Adrián Rincón Plata | ||||
| Title: | Chief Legal Counsel | ||||