6-K
Grupo Aval Acciones Y Valores S.A. (AVAL)
UNITED STATES
SECURITIES ANDEXCHANGE COMMISSION
Washington, D.C.20549
FORM 6-K****
Report Of ForeignPrivate Issuer
Pursuant To Rule13a-16 Or 15d-16 Of
TheSecurities Exchange Act Of 1934
For the month of May 2024
Commission File Number: 001-36631
Grupo Aval Accionesy Valores S.A.
(Exact name ofregistrant as specified in its charter)
Carrera 13 No.26A - 47
BogotáD.C., Colombia
(Address of principalexecutive 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 |
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GRUPO AVAL ACCIONESY VALORES S.A.
TABLE OF CONTENTS
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| 1. | Report of First Quarter 2024 Consolidated Results |
Item1
0 Haga clic para modificar el estilo de título Bogotá D.C., Colombia Carrera 13 No 26A - 47 - 23 rd Floor Quarterly Periodic Report 1Q2024 Grupo Aval Acciones y Valores S.A.
| Disclaimer |
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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 the Superintendency of Finance 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.
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.
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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 merchant bank in Colombia (Corficolombiana). In addition, it is present in Panama through Multibank's operation 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 March 31, 2024, the Company has the following issuances:
| Stocks | Securities issues in force | ||
|---|---|---|---|
| Type of security | Common<br> stock | Preferred<br> stock | |
| Trading system | Stock<br> exchange | Stock<br> exchange | |
| Stock exchange | Colombian<br> Stock Exchange (BVC) | ||
| Outstanding Shares (*) | 16,201,712,499 | 7,541,763,255 | |
| Issue amount(*) | 16,201,712,499 | 7,541,763,255 | |
| Amount placed(*) | 16,201,712,499 | 7,541,763,255 | |
| Local Bonds | |||
| --- | --- | --- | --- |
| Year | Principal (million) | Rate | Rating |
| Issue of 2009 - Series A - 15 years | 124,520 | CPI+5.2% | AAA<br> –BRC Investor Services S.A. |
| Issue of 2016 - Series A - 10 years | 93,000 | CPI+3.86% | |
| Issue of 2016 - Series A - 20 years | 207,000 | CPI+4.15% | |
| Issue of 2017 - Series A - 25 years | 300,000 | CPI<br> +3.99% | |
| Issue of 2019 - Series C - 5 years | 100,000 | 6.42% | |
| Issue of 2019 - Series A - 20 years | 300,000 | CPI<br> +3.69% | |
| 1,124,520 | |||
| International Bonds | |||
| Principal | Rate | Rating | |
| U. S. (million) | |||
| Issue of 2020 - 10 years | US<br> 1,000 | 4.38% | Ba2<br> / Negative (Moody’s) |
| BB+<br> Stable (Fitch) |
Main domicile: Bogotá D.C., Colombia
Address: Carrera 13 No 26A – 47- 23rd Floor
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| Key results of 1Q24 | 4 |
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| Consolidated Financial Results | 5 |
| – Statement of Financial Position Analysis | 7 |
| – Income Statement Analysis | 15 |
| Risk Management | 19 |
| Quantitative and Qualitative disclosure about market risk | 19 |
| Corporate Governance | 19 |
| ESG | 19 |
| Separated Financial Results | 21 |
| – Statement of Financial Position Analysis | 21 |
| – Income Statement Analysis | 22 |
| Grupo Aval + Grupo Aval Limited | 23 |
| Definitions | 24 |
| Consolidated Financial Statements | 25 |
| Separate Financial Statements | 27 |
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Bogotá,May 14^th^, 2024. Grupo Aval S.A. (NYSE:AVAL) reported a consolidated attributable net income of Ps 113.7 billion (Ps 4.8 pesosper share) for 1Q24 . ROAE was 2.7% and ROAA was 0.6% for 1Q24.
| • | Gross<br> loans reached 189 trillion pesos, a 1.5% growth versus 4Q23 and 2.2% growth versus 1Q23.<br> Consolidated deposits reached 189 trillion pesos, a 4.0% growth versus 4Q23 and 6.1% growth<br> versus 1Q23. |
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| • | Over<br> the quarter, Aval banks gained market shares of 32 bps in total loans, 39 bps in commercial<br> loans, 42 bps in consumer loans, and 17 bps in mortgages. |
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| • | The<br> quality of our loan portfolio on a +90 PDLs basis deteriorated 17 bps during the quarter. |
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| • | Cost<br> of risk for consumer loans decreased 4 pbs over the quarter. Cost of risk for commercial<br> loans increased slightly due to strong loan balance growth. As a result, cost of risk for<br> the quarter stood at 2.9%, 24 bps higher than on 4Q23. |
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| • | During<br> 1Q24, NIM on loans increased 16 bps during the quarter to 4.3%. Total NIM decreased 49 bps<br> to 3.4% due to a lower NIM on investments. |
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| • | Cost<br> to Assets efficiency ratio improved to 2.8% versus 2.9% observed during 4Q23. OPEX grew 0.8%<br> versus 1Q23. |
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| • | Attributable net income for the<br>quarter was 113.7 billion, with a ROAA of 0.6% and an ROAE of 2.7%. |
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Bogotá,May 14^th^, 2024. Grupo Aval S.A. (NYSE:AVAL) reported a consolidated attributable net income of Ps 113.7 billion (Ps 4.8 pesosper share) for 1Q24. ROAE was 2.7% and ROAA was 0.6% for 1Q24.
| COP $tn | 1Q23 | 4Q23 | 1Q24 | 1Q24 vs 4Q23 | 1Q24 vs 1Q23 | |
|---|---|---|---|---|---|---|
| Balance Sheet | Gross Loans | $ 184.6 | $ 185.8 | $ 188.6 | 1.5% | 2.2% |
| Deposits | $ 178.4 | $ 182.0 | $ 189.2 | 4.0% | 6.1% | |
| Deposits/Net Loans | 1.00 x | 1.03 x | 1.06 x | 0.03 x | 0.06 x | |
| Loan Quality | 90 days PDLs / Gross Loans | 3.4% | 4.0% | 4.1% | 17 bps | 70 bps |
| Allowance/90 days PDLs | 1.48 x | 1.36 x | 1.35 x | -0.01 x | -0.13 x | |
| Cost of risk | 1.7% | 2.7% | 2.9% | 24 bps | 118 bps | |
| Profitability | Net interest margin | 3.7% | 3.9% | 3.4% | (49) bps | (34) bps |
| Fee income Ratio | 19.0% | 19.0% | 21.5% | 246 bps | 253 bps | |
| Efficiency Ratio | 46.7% | 54.0% | 50.4% | (356) bps | 369 bps | |
| Attributable net income | $ 0.43 | $ 0.08 | $ 0.11 | 37.2% | -73.2% | |
| ROAA | 1.4% | 0.5% | 0.6% | 13 bps | (79) bps | |
| ROAE | 10.4% | 2.0% | 2.7% | 74 bps | (768) 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 Marginincludes 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.
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| Grupo<br> Aval Acciones y Valores S.A. | |||||
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| Consolidated<br> Financial Statements Under IFRS | |||||
| Financial Statements Under IFRS | 1Q23 | 4Q23 | 1Q24 | ||
| Information in Ps. Billions | |||||
| Consolidated<br> Statement of Financial Position | 1Q23 | 4Q23 | 1Q24 | Δ | |
| 1Q24<br> vs. 4Q23 | 1Q24<br> vs. 1Q23 | ||||
| Cash and cash equivalents | 19,327.8 | 18,597.9 | 18,568.3 | -0.2% | -3.9% |
| Trading assets | 13,585.5 | 15,451.1 | 15,384.5 | -0.4% | 13.2% |
| Investment securities | 31,969.1 | 34,425.7 | 36,560.0 | 6.2% | 14.4% |
| Hedging derivatives assets | 35.1 | 48.7 | 58.9 | 21.1% | 67.9% |
| Total loans, net | 179,102.9 | 176,168.1 | 178,471.0 | 1.3% | -0.4% |
| Tangible assets | 7,247.8 | 6,995.9 | 7,094.4 | 1.4% | -2.1% |
| Goodwill | 2,232.2 | 2,202.2 | 2,203.0 | 0.0% | -1.3% |
| Concession arrangement rights | 13,536.2 | 13,557.3 | 13,568.4 | 0.1% | 0.2% |
| Other assets | 31,841.5 | 33,734.8 | 34,983.5 | 3.7% | 9.9% |
| Total<br> assets | 298,878.2 | 301,181.6 | 306,892.0 | 1.9% | 2.7% |
| Trading liabilities | 1,517.6 | 2,154.4 | 1,193.1 | -44.6% | -21.4% |
| Hedging derivatives liabilities | 5.6 | 217.6 | 160.0 | -26.5% | N.A. |
| Customer deposits | 178,352.4 | 181,987.4 | 189,212.2 | 4.0% | 6.1% |
| Interbank borrowings and overnight<br> funds | 8,799.8 | 15,081.9 | 17,222.0 | 14.2% | 95.7% |
| Borrowings from banks and others | 29,346.9 | 22,218.5 | 21,170.2 | -4.7% | -27.9% |
| Bonds issued | 27,352.4 | 23,427.8 | 22,829.1 | -2.6% | -16.5% |
| Borrowings from development entities | 4,539.5 | 4,813.1 | 4,864.3 | 1.1% | 7.2% |
| Other liabilities | 18,737.1 | 19,760.5 | 19,165.0 | -3.0% | 2.3% |
| Total<br> liabilities | 268,651.1 | 269,661.2 | 275,816.0 | 2.3% | 2.7% |
| Equity<br> attributable to owners of the parent | 16,175.7 | 16,782.7 | 16,452.2 | -2.0% | 1.7% |
| Non-controlling<br> interest | 14,051.3 | 14,737.7 | 14,623.9 | -0.8% | 4.1% |
| Total<br> equity | 30,227.0 | 31,520.4 | 31,076.0 | -1.4% | 2.8% |
| Total<br> liabilities and equity | 298,878.2 | 301,181.6 | 306,892.0 | 1.9% | 2.7% |
| Consolidated<br> Statement of Income | 1Q23 | 4Q23 | 1Q24 | Δ | |
| 1Q24<br> vs. 4Q23 | 1Q24<br> vs. 1Q23 | ||||
| Interest income | 7,008.3 | 7,421.9 | 7,236.2 | -2.5% | 3.3% |
| Interest expense | 5,459.5 | 5,891.6 | 5,555.8 | -5.7% | 1.8% |
| Net<br> interest income | 1,548.8 | 1,530.3 | 1,680.4 | 9.8% | 8.5% |
| Loans and other accounts receivable | 920.5 | 1,370.1 | 1,485.4 | 8.4% | 61.4% |
| Other financial assets | (0.3) | (2.3) | 3.3 | N.A | N.A |
| Recovery of charged-off financial<br> assets | (133.7) | (132.5) | (128.6) | -2.9% | -3.8% |
| Net<br> impairment loss on financial assets | 786.5 | 1,235.3 | 1,360.1 | 10.1% | 72.9% |
| Net<br> interest income, after impairment losses | 762.3 | 295.0 | 320.3 | 8.6% | -58.0% |
| Net income from commissions and<br> fees | 842.3 | 766.9 | 892.3 | 16.3% | 5.9% |
| Gross profit from sales of goods<br> and services | 1,163.6 | 797.3 | 823.4 | 3.3% | -29.2% |
| Net trading income | (81.3) | 202.3 | 243.6 | 20.4% | N.A |
| Net income from other financial<br> instruments mandatory at FVTPL | 93.9 | 76.6 | 104.5 | 36.4% | 11.2% |
| Total other income | 875.9 | 658.7 | 409.3 | -37.9% | -53.3% |
| Total other expenses | 2,077.0 | 2,177.0 | 2,094.6 | -3.8% | 0.8% |
| Net<br> income before income tax expense | 1,579.8 | 619.7 | 698.8 | 12.8% | -55.8% |
| Income<br> tax expense | 532.6 | 251.1 | 225.7 | -10.1% | -57.6% |
| Net<br> income for the period | 1,047.3 | 368.6 | 473.1 | 28.4% | -54.8% |
| Non-controlling<br> interest | 622.2 | 285.7 | 359.4 | 25.8% | -42.2% |
| Net<br> income attributable to owners of the parent | 425.1 | 82.9 | 113.7 | 37.2% | -73.2% |
| Key<br> ratios | 1Q23 | 4Q23 | 1Q24 | ||
| Net Interest Margin(1) | 2.8% | 2.8% | 3.0% | ||
| Net Interest Margin (including net trading income)(1) | 3.7% | 3.9% | 3.4% | ||
| Efficiency ratio(2) | 46.7% | 54.0% | 50.4% | ||
| 90 days PDL / Gross loans (5) | 3.4% | 4.0% | 4.1% | ||
| Provision expense / Average gross loans (6) | 1.7% | 2.7% | 2.9% | ||
| Allowance / 90 days PDL (5) | 1.48 | 1.36 | 1.35 | ||
| Allowance / Gross loans | 5.1% | 5.4% | 5.6% | ||
| Charge-offs / Average gross loans (6) | 1.8% | 2.6% | 2.5% | ||
| Total loans, net / Total assets | 59.9% | 58.5% | 58.2% | ||
| Deposits / Total loans, net | 99.6% | 103.3% | 106.0% | ||
| Equity / Assets | 10.1% | 10.5% | 10.1% | ||
| Tangible equity ratio (7) | 8.8% | 9.1% | 8.7% | ||
| ROAA(3) | 1.4% | 0.5% | 0.6% | ||
| ROAE(4) | 10.4% | 2.0% | 2.7% | ||
| Shares outstanding (EoP) | 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 | ||
| Common share price (EoP) | 555.0 | 468.0 | 430.0 | ||
| Preferred share price (EoP) | 558.9 | 485.0 | 430.0 | ||
| BV/ EoP shares in Ps. | 681.3 | 706.8 | 692.9 | ||
| EPS | 17.9 | 3.5 | 4.8 | ||
| P/E (8) | 7.8 | 34.7 | 22.4 | ||
| P/BV (8) | 0.8 | 0.7 | 0.6 |
(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.
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ConsolidatedFinancial Results
Statementof Financial Position Analysis
1. Assets
Total assets as of March 31^st^, 2024 totaled Ps 306,892.0 billion showing an increase of 2.7% versus total assets in March 31^st^, 2023 and an increase of 1.9% versus December 31^th^, 2023. Growth was mainly driven by (i) a 14.4% year over year growth in investment securities, net to Ps 36,560.0 billion, (ii) a 9.9% year over year increase in other assets equivalents to Ps 34,983.5 billion and (iii) a 13.2% yearly growth in trading assets, net to Ps 15,384.5 billion.
1.1 Loan portfolio
Gross loans (excluding interbank and overnight funds) increased by 2.2% between March 31^st^, 2024 and March 31^st^, 2023 to Ps 188,648.9 billion mainly driven by (i) a 3.1% increase in commercial loans to Ps 109,461.4 billion, (ii) a 4.6% increase in Mortgages loans to Ps 18,853.0 billion, and (iii) a 0.2% decrease in Consumer loans to Ps 60,049.7 billion.
Interbank & overnight funds decreased by 90.3% to Ps 379.2 billion versus 1Q23, given that a year ago Banco de Bogotá had just received the resources from the sales of its investment in BHI and had not yet deployed them.
Loss allowance was Ps 10,557.2 billion as of March 31^st^, 2024 taking net loans to Ps 178,471.0 billion.
| Total<br> loans, net | 1Q23 | 4Q23 | 1Q24 | Δ | |
|---|---|---|---|---|---|
| 1Q24<br> vs. 4Q23 | 1Q24<br> vs. 1Q23 | ||||
| Gross<br> loans | |||||
| Commercial loans | 106,129.9 | 107,047.8 | 109,461.4 | 2.3% | 3.1% |
| Consumer loans | 60,186.9 | 59,999.6 | 60,049.7 | 0.1% | -0.2% |
| Mortgages loans | 18,026.1 | 18,486.2 | 18,853.0 | 2.0% | 4.6% |
| Microcredit loans | 267.6 | 277.5 | 284.9 | 2.6% | 6.4% |
| Gross<br> loans | 184,610.5 | 185,811.2 | 188,648.9 | 1.5% | 2.2% |
| Interbank & overnight funds | 3,920.0 | 392.6 | 379.2 | -3.4% | -90.3% |
| Total<br> gross loans | 188,530.4 | 186,203.8 | 189,028.1 | 1.5% | 0.3% |
| Loss<br> allowance | (9,427.5) | (10,035.7) | (10,557.2) | 5.2% | 12.0% |
| Allowance for impairment of commercial<br> loans | (5,380.1) | (5,294.6) | (5,435.7) | 2.7% | 1.0% |
| Allowance for impairment of consumer<br> loans | (3,630.9) | (4,307.4) | (4,647.1) | 7.9% | 28.0% |
| Allowance for impairment of mortgages | (376.2) | (380.0) | (414.7) | 9.1% | 10.3% |
| Allowance for impairment of microcredit<br> loans | (40.3) | (53.7) | (59.6) | 11.2% | 48.0% |
| Total<br> loans, net | 179,102.9 | 176,168.1 | 178,471.0 | 1.3% | -0.4% |
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The following table shows the gross loan composition per product of each of our loan categories.
| Gross<br> loans | 1Q23 | 4Q23 | 1Q24 | Δ | |
|---|---|---|---|---|---|
| 1Q24<br> vs. 4Q23 | 1Q24<br> vs. 1Q23 | ||||
| General purpose | 74,955.1 | 73,611.9 | 75,765.7 | 2.9% | 1.1% |
| Working capital | 14,930.6 | 16,413.2 | 16,512.7 | 0.6% | 10.6% |
| Financial leases | 10,892.9 | 11,706.8 | 11,736.2 | 0.3% | 7.7% |
| Funded by development banks | 4,397.1 | 4,464.8 | 4,453.8 | -0.2% | 1.3% |
| Overdrafts | 521.8 | 509.5 | 622.7 | 22.2% | 19.3% |
| Credit cards | 432.4 | 341.6 | 370.3 | 8.4% | -14.4% |
| Commercial<br> loans | 106,129.9 | 107,047.8 | 109,461.4 | 2.3% | 3.1% |
| Payroll loans | 33,360.4 | 32,619.6 | 32,801.9 | 0.6% | -1.7% |
| Personal loans | 13,981.4 | 14,232.9 | 14,220.5 | -0.1% | 1.7% |
| Credit cards | 7,192.8 | 7,596.2 | 7,478.1 | -1.6% | 4.0% |
| Automobile and vehicle | 5,439.0 | 5,332.4 | 5,354.7 | 0.4% | -1.5% |
| Financial leases | 17.2 | 15.5 | 16.4 | 5.6% | -5.0% |
| Overdrafts | 73.4 | 76.1 | 73.5 | -3.5% | 0.2% |
| Other | 122.6 | 127.0 | 104.7 | -17.6% | -14.7% |
| Consumer<br> loans | 60,186.9 | 59,999.6 | 60,049.7 | 0.1% | -0.2% |
| Mortgages | 15,596.4 | 16,294.2 | 16,665.2 | 2.3% | 6.9% |
| Housing leases | 2,429.7 | 2,192.0 | 2,187.7 | -0.2% | -10.0% |
| Mortgages<br> loans | 18,026.1 | 18,486.2 | 18,853.0 | 2.0% | 4.6% |
| Microcredit<br> loans | 267.6 | 277.5 | 284.9 | 2.6% | 6.4% |
| Gross<br> loans | 184,610.4 | 185,811.2 | 188,648.9 | 1.5% | 2.2% |
| Interbank & overnight funds | 3,920.0 | 392.6 | 379.2 | -3.4% | -90.3% |
| Total<br> gross loans | 188,530.4 | 186,203.8 | 189,028.1 | 1.5% | 0.3% |
In terms of gross loans (excluding interbank and overnight funds), 92.5% are domestic and 7.5% are foreign (reflecting the Multi Financial Holding operation). In terms of currency, 83.4% are peso denominated loans and 16.6% are USD denominated.
A 17.3% year over year appreciation of the Peso relative to the U.S. Dollar, led to softer growth metrics for US Dollar denominated loans in Pesos.
Commercial loans increased by 3.1% versus 1Q23 and 2.3% versus 4Q23. Over the year, Peso denominated loans increased by 7.1%, while dollar denominated loans increased 10.5% in dollar terms.
Consumer loans remained stable during 1Q24. Peso denominated consumer loans grew 0.6% yearly, while dollar denominated loans increased 6.4% in dollar terms.
Mortgages loans increased by 4.6% versus 1Q23 and 2.0% versus 4Q23. Over the year, Peso denominated loans increased by 11.1%, while dollar denominated loans increased 2.5% in dollar terms.
The following table shows the loans and receivables composition per segment.
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| Gross<br> loans / Segment ($) | 1Q23 | 4Q23 | 1Q24 | Δ | |
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| 1Q24<br> vs. 4Q23 | 1Q24<br> vs. 1Q23 | ||||
| Banking services | 183,210.7 | 184,576.0 | 187,372.4 | 1.5% | 2.3% |
| Merchant Banking | 2,177.3 | 2,575.8 | 2,661.3 | 3.3% | 22.2% |
| Pension and Severance Fund Management | - | - | - | - | - |
| Holding | 1,464.9 | 1,242.0 | 1,247.4 | 0.4% | -14.8% |
| Eliminations | (2,242.4) | (2,582.6) | (2,632.1) | 1.9% | 17.4% |
| Gross<br> loans | 184,610.5 | 185,811.2 | 188,648.9 | 1.5% | 2.2% |
| Interbank & overnight funds | 3,920.0 | 392.6 | 379.2 | -3.4% | -90.3% |
| Total<br> gross loans | 188,530.4 | 186,203.8 | 189,028.1 | 1.5% | 0.3% |
| Gross<br> loans / Segment (%) | 1Q23 | 4Q23 | 1Q24 | ||
| Banking services | 99.2% | 99.3% | 99.3% | ||
| Merchant Banking | 1.2% | 1.4% | 1.4% | ||
| Pension and Severance Fund Management | 0.0% | 0.0% | 0.0% | ||
| Holding | 0.8% | 0.7% | 0.7% | ||
| Eliminations | -1.2% | -1.4% | -1.4% | ||
| Gross<br> loans | 100.0% | 100.0% | 100.0% |
High interest rates and the economic slowdown have led to a deterioration in the quality of our loan portfolio both over the quarter and the year.
| Past<br> due loans | 1Q23 | 4Q23 | 1Q24 | Δ | |
|---|---|---|---|---|---|
| 1Q24<br> vs. 4Q23 | 1Q24<br> vs. 1Q23 | ||||
| Performing | 101,440.5 | 101,940.1 | 103,879.1 | 1.9% | 2.4% |
| Between 31 and 90 days past due | 710.3 | 604.8 | 892.0 | 47.5% | 25.6% |
| +90 days past due | 3,979.1 | 4,502.9 | 4,690.3 | 4.2% | 17.9% |
| Commercial<br> loans | 106,129.9 | 107,047.8 | 109,461.4 | 2.3% | 3.1% |
| Performing | 56,924.8 | 56,233.0 | 55,960.7 | -0.5% | -1.7% |
| Between 31 and 90 days past due | 1,473.7 | 1,628.0 | 1,739.3 | 6.8% | 18.0% |
| +90 days past due | 1,788.3 | 2,138.5 | 2,349.7 | 9.9% | 31.4% |
| Consumer<br> loans | 60,186.9 | 59,999.6 | 60,049.7 | 0.1% | -0.2% |
| Performing | 17,042.5 | 17,253.2 | 17,532.5 | 1.6% | 2.9% |
| Between 31 and 90 days past due | 420.4 | 515.3 | 574.2 | 11.4% | 36.6% |
| +90 days past due | 563.2 | 717.6 | 746.3 | 4.0% | 32.5% |
| Mortgages<br> loans | 18,026.1 | 18,486.2 | 18,853.0 | 2.0% | 4.6% |
| Performing | 229.5 | 229.9 | 232.0 | 0.9% | 1.1% |
| Between 31 and 90 days past due | 8.4 | 10.6 | 10.5 | -0.8% | 25.7% |
| +90 days past due | 29.8 | 37.0 | 42.3 | 14.3% | 42.2% |
| Microcredit<br> loans | 267.6 | 277.5 | 284.9 | 2.6% | 6.4% |
| Gross<br> loans | 184,610.5 | 185,811.2 | 188,648.9 | 1.5% | 2.2% |
| Interbank<br> & overnight funds | 3,920.0 | 392.6 | 379.2 | -3.4% | -90.3% |
| Total<br> gross loans | 188,530.4 | 186,203.8 | 189,028.1 | 1.5% | 0.3% |
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Our 30 days PDL to total loans were 5.9% for 1Q24, 5.5% for 4Q23 and 4.9% for 1Q23. The ratio of 90 days PDL to total loans was 4.1% for 1Q24, 4.0% for 4Q23 and 3.4% for 1Q23.
| 30<br> days past due loans | 1Q23 | 4Q23 | 1Q24 |
|---|---|---|---|
| Commercial | 4.4% | 4.8% | 5.1% |
| Consumer | 5.4% | 6.3% | 6.8% |
| Mortgages | 5.5% | 6.7% | 7.0% |
| Microcredit | 14.2% | 17.2% | 18.5% |
| Total<br> loans | 4.9% | 5.5% | 5.9% |
| 90<br> days past due loans | 1Q23 | 4Q23 | 1Q24 |
| Commercial | 3.7% | 4.2% | 4.3% |
| Consumer | 3.0% | 3.6% | 3.9% |
| Mortgages | 3.1% | 3.9% | 4.0% |
| Microcredit | 11.1% | 13.3% | 14.9% |
| Total<br> loans | 3.4% | 4.0% | 4.1% |
Loans classified as stage 2 and 3 were 12.3% for 1Q24, 11.7% for 4Q23 and 12.7% for 1Q23. Allowance for stage 2 and 3 loans / stage 2 and 3 loans improved over the last 12 months and stood at 38.0% for 1Q24, 37.9% for 4Q23 and 33.9% for 1Q23.
| Loans<br> by stages (%) | 1Q23 | 4Q23 | 1Q24 |
|---|---|---|---|
| Loans classified<br> as Stage 2 / gross loans | 6.3% | 4.9% | 5.2% |
| Loans classified as Stage 3 / gross loans | 6.4% | 6.8% | 7.0% |
| Loans<br> classified as Stage 2 and 3 / gross loans | 12.7% | 11.7% | 12.3% |
| Allowance<br> for Stage 1 loans / Stage 1 loans | 0.9% | 1.1% | 1.1% |
| Allowance for Stage 2 loans / Stage 2 loans | 12.1% | 14.1% | 14.8% |
| Allowance for Stage 3 loans / Stage 3 loans | 55.5% | 55.2% | 55.3% |
| Allowance<br> for Stage 2 and 3 loans / Stage 2 and 3 loans | 33.9% | 37.9% | 38.0% |
Grupo Aval’s coverage over its 90 days PDL was 1.3x for 1Q24, 1.4x for 4Q23, and 1.5x for 1Q23, coverage over its 30 days PDL was 1.0x in 1Q24, 1.0x for 4Q23 and 1.1x 1Q23.
Impairment loss, net of recoveries of charged off assets to average gross loans was 2.9% for 1Q24, 2.7% for 4Q23, and 1.7% 1Q23. Charge-offs to average gross loans was 2.5% for 1Q24, 2.6% for 4Q23, and 1.8% in 1Q23.
| Coverage and cost of risk | 1Q23 | 4Q23 | 1Q24 |
|---|---|---|---|
| Allowance<br> for impairment / 30 days PDL | 1.1 | 1.0 | 1.0 |
| Allowance for impairment / 90 days PDL | 1.5 | 1.4 | 1.3 |
| Allowance<br> for impairment / gross loans (*) | 5.1% | 5.4% | 5.6% |
| Impairment<br> loss / 30 days PDL | 0.4 | 0.5 | 0.5 |
| Impairment loss / 90 days PDL | 0.6 | 0.7 | 0.8 |
| Impairment loss / average gross loans (*) | 2.0% | 2.9% | 3.2% |
| Impairment<br> loss, net of recoveries of charged-off assets / average gross loans (*) | 1.7% | 2.7% | 2.9% |
| Charge-offs<br> / average gross loans (*) | 1.8% | 2.6% | 2.5% |
(*) Gross loans exclude interbank and overnight funds. 30 days past due and 90 days past due are calculated on a capital plus interest accounts receivable basis.
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1.2 Investment securities and tradingassets
Total investment securities and trading assets increased 14.0% to Ps 51,944.5 billion between March 31^st^, 2024 and March 31^st^, 2023 and increased 4.1% versus December 31^st^, 2023.
Ps 42,959.5 billion of our total portfolio is invested in debt securities, which increased by 18.6% between March 31^st^, 2024 and March 31^st^, 2023 and increased by 6.3% versus December 31^st^, 2023. Ps 7,748.9 billion of our total investment securities is invested in equity securities, which increased by 4.3% between March 31^st^, 2024 and March 31^st^, 2023 and increased by 5.0% versus December 31^st^, 2023.
| Investment<br> and trading assets | 1Q23 | 4Q23 | 1Q24 | Δ | |
|---|---|---|---|---|---|
| 1Q24<br> vs. 4Q23 | 1Q24<br> vs. 1Q23 | ||||
| Debt securities | 5,145.6 | 7,113.4 | 7,770.1 | 9.2% | 51.0% |
| Equity securities | 6,525.1 | 6,260.2 | 6,378.3 | 1.9% | -2.3% |
| Derivative assets | 1,914.8 | 2,077.6 | 1,236.0 | -40.5% | -35.4% |
| Trading<br> assets | 13,585.5 | 15,451.1 | 15,384.5 | -0.4% | 13.2% |
| Investments in debt securities at FVTPL<br> (non compliant with SPPI test) | 1.4 | 1.9 | 1.9 | 0.6% | 38.6% |
| Debt securities at FVOCI | 21,275.0 | 23,326.8 | 24,978.6 | 7.1% | 17.4% |
| Equity securities at FVOCI | 903.1 | 1,117.3 | 1,370.6 | 22.7% | 51.8% |
| Investments<br> in securities at FVOCI | 22,178.1 | 24,444.1 | 26,349.2 | 7.8% | 18.8% |
| Investments in debt securities at AC | 9,789.6 | 9,979.7 | 10,209.0 | 2.3% | 4.3% |
| Investment<br> and trading assets | 45,554.5 | 49,876.8 | 51,944.5 | 4.1% | 14.0% |
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 7.9% for 1Q24, 11.4% for 4Q23 and 11.7% for 1Q23.
1.3 Cash and Cash Equivalents
As of March 31^st^, 2024 cash and cash equivalents had a balance of Ps 18,568.3 billion showing a decrease of 3.9% versus March 31^st^, 2023 and 0.2% versus December 31^st^, 2023.
The ratio of cash and cash equivalents to customer deposits was 9.8% at March 31^st^, 2024, 10.2% at December 31^st^, 2023, and 10.8% at March 31^st^, 2023.
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1.4Goodwill and Other Intangibles
Goodwill and other intangibles as of March 31^st^, 2024 reached Ps 18,222.3 billion, increasing by 2.1% versus March 31^st^, 2023 and 0.4% versus December 31^st^, 2023.
Goodwill as of March 31^st^, 2024 was Ps 2,203.0 billion, decreasing by 1.3% versus March 31^st^, 2023 and an increase of 0.03% versus December 31^st^, 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 March 31^st^, 2024 reached Ps 16,019.4 billion and grew by 2.6% versus March 31^st^, 2023 and increased by 0.5% versus December 31^st^, 2023.
2.Liabilities
As of March 31^st^, 2024 Total Funding represented 92.6% of total liabilities and other liabilities represented 7.4%.
2.1Funding
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 255,297.8 billion as of March 31^st^, 2024 showing an increase of 2.8% versus March 31^st^, 2023 and 3.1% versus December 31^st^, 2023. Total customer deposits represented 74.1% of total funding as of 1Q24, 73.5% for 4Q23, and 71.8% for 1Q23.
Average cost of funds was 8.9% for 1Q24, 9.5% for 4Q23 and 8.9% for 1Q23.
2.1.1Customer deposits
| Customer<br> deposits | 1Q23 | 4Q23 | 1Q24 | Δ | |
|---|---|---|---|---|---|
| 1Q24<br> vs. 4Q23 | 1Q24<br> vs. 1Q23 | ||||
| Checking accounts | 17,917.7 | 17,737.8 | 16,677.0 | -6.0% | -6.9% |
| Other deposits | 928.3 | 430.2 | 366.1 | -14.9% | -60.6% |
| Non-interest<br> bearing | 18,846.0 | 18,168.0 | 17,043.1 | -6.2% | -9.6% |
| Checking accounts | 6,041.7 | 6,072.1 | 5,788.4 | -4.7% | -4.2% |
| Time deposits | 85,133.4 | 86,597.5 | 91,149.9 | 5.3% | 7.1% |
| Savings deposits | 68,331.2 | 71,149.9 | 75,230.8 | 5.7% | 10.1% |
| Interest<br> bearing | 159,506.4 | 163,819.4 | 172,169.1 | 5.1% | 7.9% |
| Customer<br> deposits | 178,352.4 | 181,987.4 | 189,212.2 | 4.0% | 6.1% |
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Of our total customer deposits as of March 31^st^, 2024, checking accounts represented 11.9%, time deposits 48.2%, savings accounts 39.8%, and other deposits 0.2%.
The following table shows the customer deposits composition by segment.
| Deposits<br> / Segment($) | 1Q23 | 4Q23 | 1Q24 | Δ | |
|---|---|---|---|---|---|
| 1Q24<br> vs. 4Q23 | 1Q24<br> vs. 1Q23 | ||||
| Banking services | 175,101.3 | 177,750.7 | 184,259.4 | 3.7% | 5.2% |
| Merchant Banking | 6,719.7 | 8,169.6 | 8,414.8 | 3.0% | 25.2% |
| Pension and Severance Fund Management | 1.2 | 1.3 | 1.3 | -0.5% | 10.1% |
| Holding | - | - | - | N.A | N.A |
| Eliminations | (3,469.8) | (3,934.2) | (3,463.3) | -12.0% | -0.2% |
| Total<br> Grupo Aval | 178,352.4 | 181,987.4 | 189,212.2 | 4.0% | 6.1% |
| Deposits<br> / Segment (%) | 1Q23 | 4Q23 | 1Q24 | ||
| Banking services | 98.2% | 97.7% | 97.4% | ||
| Merchant Banking | 3.8% | 4.5% | 4.4% | ||
| Pension and Severance Fund Management | 0.0% | 0.0% | 0.0% | ||
| Holding | 0.0% | 0.0% | 0.0% | ||
| Eliminations | -1.9% | -2.2% | -1.8% | ||
| Total<br> Grupo Aval | 100.0% | 100.0% | 100.0% |
2.1.2 Borrowings from Banks and Other(includes borrowings from development entities)
As of March 31^st^, 2024 borrowings from banks and other totaled Ps 26,034.5 billion, decreasing 23.2% versus March 31^st^, 2023 and 3.7% versus December 31^st^, 2023. Over the year, Peso denominated borrowings from banks and others increased by 0.4%, while dollar denominated borrowings from banks and others decreased 19.8% in dollar terms.
2.1.3 Bonds issued
Total bonds issued as of March 31^st^, 2024 totaled Ps 22,829.1 billion and decreased 16.5% versus March 31^st^, 2023 and 2.6% versus December 31^st^, 2023. Over the year, Peso denominated bonds decreased by 14.6%, while dollar denominated bonds decreased 0.5% in dollar terms.
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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 most relevant consolidated subsidiaries (Banco de Bogotá, Banco de Occidente, Banco Popular, Banco AV Villas, Corficolombiana and Porvenir).
As of March 31^st^, 2024 non-controlling interest was Ps 14,623.9 billion which increased by 4.1% versus March 31^st^, 2023 and decreased by 0.8% versus December 31^st^, 2023. Total non-controlling interest represents 47.1% of total equity as of 1Q24, compared to 46.8% in 4Q23 and 46.5% in 1Q23.
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.
| Percemtage<br> consolidated by Aval | 1Q23 | 4Q23 | 1Q24 | Δ | |
|---|---|---|---|---|---|
| 1Q24<br> vs. 4Q23 | 1Q24<br> vs. 1Q23 | ||||
| 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 | 75.8% | 75.8% | 75.8% | - | - |
| Corficolombiana | 40.5% | 40.5% | 40.5% | - | - |
4. Attributable Shareholders’Equity
Attributable shareholders’ equity as of March 31^st^, 2024 was Ps 16,452.2 billion, showing an increase of 1.7% versus March 31^st^, 2023 and decrease 2.0% versus December 31^st^, 2023.
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Income StatementAnalysis
Our net income attributable to the owners of the parent company for 1Q24 was Ps 113.7 billion showing a 73.2% decrease versus 1Q23 and a 37.2% increase versus 4Q23.
| Consolidated<br> Statement of Income | 1Q23 | 4Q23 | 1Q24 | Δ | |
|---|---|---|---|---|---|
| 1Q24<br> vs. 4Q23 | 1Q24<br> vs. 1Q23 | ||||
| Interest income | 7,008.3 | 7,421.9 | 7,236.2 | -2.5% | 3.3% |
| Interest expense | 5,459.5 | 5,891.6 | 5,555.8 | -5.7% | 1.8% |
| Net<br> interest income | 1,548.8 | 1,530.3 | 1,680.4 | 9.8% | 8.5% |
| Loans and other accounts receivable | 920.5 | 1,370.1 | 1,485.4 | 8.4% | 61.4% |
| Other financial assets | (0.3) | (2.3) | 3.3 | -244.3% | N.A |
| Recovery of charged-off financial<br> assets | (133.7) | (132.5) | (128.6) | -2.9% | -3.8% |
| Net<br> impairment loss on financial assets | 786.5 | 1,235.3 | 1,360.1 | 10.1% | 72.9% |
| Net income from commissions and<br> fees | 842.3 | 766.9 | 892.3 | 16.3% | 5.9% |
| Gross profit from sales of goods<br> and services | 1,163.6 | 797.3 | 823.4 | 3.3% | -29.2% |
| Net trading income | (81.3) | 202.3 | 243.6 | 20.4% | N.A |
| Net income from other financial<br> instruments mandatory at FVTPL | 93.9 | 76.6 | 104.5 | 36.4% | 11.2% |
| Total other income | 875.9 | 658.7 | 409.3 | -37.9% | -53.3% |
| Total other expenses | 2,077.0 | 2,177.0 | 2,094.6 | -3.8% | 0.8% |
| Net<br> income before income tax expense | 1,579.8 | 619.7 | 698.8 | 12.8% | -55.8% |
| Income<br> tax expense | 532.6 | 251.1 | 225.7 | -10.1% | -57.6% |
| Net<br> income for the period | 1,047.3 | 368.6 | 473.1 | 28.4% | -54.8% |
| Non-controlling<br> interest | 622.2 | 285.7 | 359.4 | 25.8% | -42.2% |
| Net<br> income attributable to owners of the parent | 425.1 | 82.9 | 113.7 | 37.2% | -73.2% |
1. Net Interest Income
| Net<br> interest income | 1Q23 | 4Q23 | 1Q24 | Δ | |
|---|---|---|---|---|---|
| 1Q24<br> vs. 4Q23 | 1Q24<br> vs. 1Q23 | ||||
| Interest<br> income | |||||
| Commercial | 3,382.1 | 3,793.1 | 3,600.1 | -5.1% | 6.4% |
| Interbank and overnight funds | 375.0 | 206.6 | 169.6 | -17.9% | -54.8% |
| Consumer | 2,178.6 | 2,380.6 | 2,335.8 | -1.9% | 7.2% |
| Mortgages and housing leases | 408.4 | 446.3 | 468.5 | 5.0% | 14.7% |
| Microcredit | 17.3 | 18.4 | 19.4 | 5.6% | 12.3% |
| Loan portfolio | 6,361.4 | 6,844.9 | 6,593.4 | -3.7% | 3.6% |
| Interests on investments in debt<br> securities | 646.9 | 576.9 | 642.7 | 11.4% | -0.6% |
| Total<br> interest income | 7,008.3 | 7,421.9 | 7,236.2 | -2.5% | 3.3% |
| Interest expense | |||||
| Checking accounts | 62.5 | 80.7 | 73.0 | -9.5% | 16.9% |
| Time deposits | 2,216.4 | 2,608.1 | 2,525.5 | -3.2% | 13.9% |
| Savings deposits | 1,591.8 | 1,527.3 | 1,442.5 | -5.6% | -9.4% |
| Total interest<br> expenses on deposits | 3,870.6 | 4,216.1 | 4,041.0 | -4.2% | 4.4% |
| Interbank borrowings and overnight<br> funds | 395.9 | 550.0 | 487.0 | -11.5% | 23.0% |
| Borrowings from banks and others | 487.7 | 456.1 | 420.0 | -7.9% | -13.9% |
| Bonds issued | 562.6 | 507.2 | 457.0 | -9.9% | -18.8% |
| Borrowings from development entities | 142.6 | 162.1 | 150.9 | -6.9% | 5.8% |
| Total interest<br> expenses on financial obligations | 1,588.9 | 1,675.5 | 1,514.9 | -9.6% | -4.7% |
| Total<br> interest expense | 5,459.5 | 5,891.6 | 5,555.8 | -5.7% | 1.8% |
| Net<br> interest income | 1,548.8 | 1,530.3 | 1,680.4 | 9.8% | 8.5% |
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Our net interest income increased by 8.5% to Ps 1,680.4 billion for 1Q24 versus 1Q23 and by 9.8% versus 4Q23. The increase versus 1Q23 was derived mainly from a 3.3% increase in total interest income offset by a 1.8% increase in total interest expense.
| Net<br> Interest Margin (NIM) | 1Q23 | 4Q23 | 1Q24 | Δ | |
|---|---|---|---|---|---|
| 1Q24<br> vs. 4Q23 | 1Q24<br> vs. 1Q23 | ||||
| Consolidated | |||||
| Net Interest Margin (NIM) (*) | 3.71% | 3.85% | 3.36% | (49) | (34) |
| NIM on loans | 3.59% | 4.13% | 4.29% | 16 | 70 |
| NIM on Investments | 4.17% | 2.73% | -0.23% | (296) | (440) |
| Banking segment | |||||
| Net Interest Margin (NIM) (*) | 4.27% | 4.44% | 4.22% | (21) | (5) |
| NIM on loans | 4.47% | 4.99% | 5.07% | 8 | 60 |
| NIM on Investments | 3.28% | 1.49% | -0.06% | (155) | (334) |
2. Impairment loss on financialassets, net
Our impairment loss on financial assets, net increased by 72.9% to Ps 1,360.1 billion for 1Q24 versus 1Q23 and by 10.1% versus 4Q23.
| Net<br> impairment loss on financial assets | 1Q23 | 4Q23 | 1Q24 | Δ | |
|---|---|---|---|---|---|
| 1Q24<br> vs. 4Q23 | 1Q24<br> vs. 1Q23 | ||||
| Loans and other accounts<br> receivable | 920.5 | 1,370.1 | 1,485.4 | 8.4% | 61.4% |
| Other financial assets | (0.3) | (2.3) | 3.3 | N.A | N.A |
| Recovery of charged-off financial<br> assets | (133.7) | (132.5) | (128.6) | -2.9% | -3.8% |
| Net<br> impairment loss on financial assets | 786.5 | 1,235.3 | 1,360.1 | 10.1% | 72.9% |
Our annualized gross cost of risk was 3.2% for 1Q24, 2.9% for 4Q23, and 2.0% 1Q23. Net of recoveries of charged-off assets our ratio was 2.9% for 1Q24, 2.7% for 4Q23, and 1.7% for 1Q23.
(*) 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 1Q24, 2.8% for 4Q23 and 1Q23.
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3. Total non-interest income
| Total<br> non-interest income | 1Q23 | 4Q23 | 1Q24 | Δ | |
|---|---|---|---|---|---|
| 1Q24<br> vs. 4Q23 | 1Q24<br> vs. 1Q23 | ||||
| Income<br> from commissions and fees | |||||
| Banking fees (1) | 664.4 | 704.2 | 678.9 | -3.6% | 2.2% |
| Trust activities and management<br> services | 122.9 | 112.9 | 120.3 | 6.6% | -2.1% |
| Pension and severance fund management | 250.0 | 204.7 | 281.9 | 37.7% | 12.8% |
| Bonded warehouse services | 47.3 | 45.7 | 45.8 | 0.2% | -3.2% |
| Total<br> income from commissions and fees | 1,084.5 | 1,067.5 | 1,126.9 | 5.6% | 3.9% |
| Expenses from commissions and<br> fees | 242.2 | 300.6 | 234.6 | -22.0% | -3.2% |
| Net<br> income from commissions and fees | 842.3 | 766.9 | 892.3 | 16.3% | 5.9% |
| Income from sales of goods and<br> services | 2,927.5 | 3,077.9 | 2,592.5 | -15.8% | -11.4% |
| Costs and expenses from sales<br> of goods and services | 1,763.8 | 2,280.6 | 1,769.1 | -22.4% | 0.3% |
| Gross<br> profit from sales of goods and services | 1,163.6 | 797.3 | 823.4 | 3.3% | -29.2% |
| Total trading investment income | 591.0 | 708.8 | 301.4 | -57.5% | -49.0% |
| Total derivatives income | (672.3) | (506.5) | (57.8) | -88.6% | -91.4% |
| Net<br> trading income | (81.3) | 202.3 | 243.6 | 20.4% | N.A |
| Net income from other financial<br> instruments mandatory at FVTPL | 93.9 | 76.6 | 104.5 | 36.4% | 11.2% |
| Other income | |||||
| Foreign exchange gains (losses),<br> net | 488.5 | 251.5 | 31.9 | -87.3% | 93.5% |
| Net gain on sale of investments<br> and OCI realization | 27.5 | 44.5 | 53.4 | 20.0% | 93.9% |
| Gain on the sale of non-current<br> assets held for sale | 1.1 | 12.0 | 3.9 | -67.4% | 266.8% |
| Income from non-consolidated investments<br> (2) | 214.5 | 85.9 | 225.5 | 162.5% | 5.1% |
| Net gains on asset valuations | 0.0 | 90.1 | 8.1 | -91.1% | N.A. |
| Other income from operations | 144.2 | 174.8 | 86.6 | -50.5% | -40.0% |
| Total<br> other income | 875.9 | 658.7 | 409.3 | -37.9% | -53.3% |
| Total<br> non-interest income | 2,894.5 | 2,501.7 | 2,473.1 | -1.1% | -14.6% |
^(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<br> share of profit of equity accounted investees, net of tax, and dividend income. |
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3.1 Netincome from commissions and fees
Net income from commissions and fees for 1Q24 totaled Ps 892.3 billion and increased by 5.9% versus 1Q23 and 16.3% versus 4Q23. Income from commissions and fees increased by 3.9% to Ps 1,126.9 billion in 1Q24 versus 1Q23 and 5.6% versus 4Q23.
3.2 Gross profit from salesof goods and services
Gross profit from sales of goods and services (non-financial sector) decreased by 29.2% to Ps 823.4 billion for 1Q24 versus 1Q23 and increased by 3.3% quarterly.
The infrastructure sector experienced a 46.1% contraction compared to the first quarter of 2023, explained by concessions that are moving from the construction to the operation phase like Coviandina. The energy & gas sector grew 50.3% compared to 1Q23, due to higher gas consumption that favored Promigas.
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3.3 Total other income from operations
| Other<br> income | 1Q23 | 4Q23 | 1Q24 | Δ | |
|---|---|---|---|---|---|
| 1Q24<br> vs. 4Q23 | 1Q24<br> vs. 1Q23 | ||||
| Total<br> derivatives income | (672.3) | (506.5) | (57.8) | -88.6% | -91.4% |
| Foreign<br> exchange gains (losses), net | 488.5 | 251.5 | 31.9 | -87.3% | -93.5% |
| Derivatives<br> and foreign exchange gains (losses), net (1) | (183.7) | (255.0) | (25.9) | -89.8% | -85.9% |
| Net gains on asset valuations | 0.0 | 90.1 | 8.1 | -91.1% | N.A. |
| Net income from other financial<br> instruments mandatory at FVTPL | 93.9 | 76.6 | 104.5 | 36.4% | 11.2% |
| Net gain on sale of investments<br> and OCI realization | 27.5 | 44.5 | 53.4 | 20.0% | 93.9% |
| Gain on the sale of non-current<br> assets held for sale | 1.1 | 12.0 | 3.9 | -67.4% | 266.8% |
| Income from non-consolidated investments<br> (2) | 214.5 | 85.9 | 225.5 | 162.5% | 5.1% |
| Other income from operations | 144.2 | 174.8 | 86.6 | -50.5% | -40.0% |
| Total<br> other income from operations | 297.6 | 228.8 | 456.0 | 99.3% | 53.2% |
^(1)^Includes income from trading and hedging derivatives reflected as part of the net trading income on the statement of profit and loss.
^(2)^ Includes share of profit of equity accounted investees, net of tax, and dividend income.
Total other income for 1Q24 totaled Ps 456.0 billion, quarterly and yearly performance is driven by higher derivatives and foreign exchange gains. Additionally, dividend seasonality contributes to the quarter compared with 4Q23.
4. Other expenses
Total other expenses for 1Q24 totaled Ps 2,094.6 billion and increased by 0.8% versus 1Q23 and decreased by 3.8% versus 4Q23. Our efficiency ratio measured as total other expenses to total income was 50.4% in 1Q24, 54.0% in 4Q23 and 46.7% for 1Q23.
General and administrative expenses reached Ps 1,088.9 billion, decreasing 7.9% over the quarter. Operating taxes and deposit insurances increased 8.1% and 9.0%, respectively compared to 1Q23. Personnel expenses reached Ps. 768.8 billion, increased 2.7% quarterly.
The ratio of annualized total other expenses as a percentage of average total assets was 2.8% for 1Q24 and 2.9% for 4Q23, and 2.8% for 1Q23.
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 359.4 billion, showing a 42.2% decrease versus 1Q23 and a 25.8% increase versus 4Q23. In addition, the ratio of non-controlling interest to income before non-controlling interest was 76.0% in 1Q24, 77.5% in 4Q23 and 59.4% in 1Q23.
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RISK MANAGEMENT
During the first quarter of 2024, there were no material changes in the degree of exposure to the relevant risks disclosed in the report as of December 2023, nor have any new relevant risks been identified that merit disclosure as of March 31st , 2024, 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.
QUANTITATIVE AND QUALITATIVEANALYSIS OF MARKET RISK
During 1Q24, there were no material qualitative and quantitative changes in market risk in comparison with the information reported in the report as of 4Q23, that merit disclosure as of March 31st, 2024, 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.
ESG
In terms of ESG, during this quarter there have been no material changes that should be reported.
CORPORATE GOVERNANCE
With respect to Corporate Governance, the following material changes were presented during the first quarter of 2024:
Amendment of the By-laws:
At the ordinary meeting of the General Assembly of Shareholders of Grupo Aval Acciones y Valores S.A., held on March 20, 2024, the amendment of articles 19, 21, 22, 28 of the Bylaws was approved and article 23 of the by-laws was removed.
In general terms, the reform consisted in the elimination of alternate members of the Board of Directors, the change in the composition of the board form 7 to 9 members, modifications regarding the composition of the Audit Committee and some clarifications regarding the appointment of the Secretary of the Board of Directors.
The reform of the by-laws is available on the Company´s webpage
Board of Directors:
Pursuant to the Amendment to the By-laws of the Company, the composition of the Board of Directors changed from 7 to 9 members, worth noting the following changes:
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| • | Mr.<br> Luis Carlos Sarmiento Gutiérrez, who until March 20 acted as President and Legal Representative<br> of the Company, was appointed as Director of the company and as Chairman of the Board of<br> Directors. Mr. Sarmiento Gutiérrez replaced Mr. Luis Carlos Sarmiento Angulo as president<br> of the Board of Directors. |
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| • | Mauricio<br> Cárdenas Müller, Fabio Castellanos Ordonez, Luis Fernando López Roca and<br> Esther América Paz Montoya, were re-elected as members of the Board of Directors. |
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| • | Andrés<br> Escobar Arango, José Mauricio Salgar Hurtado and Jorge Silva Lujan were elected as<br> members of the Board of Directors. |
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| • | As a<br> result of these changes, the Board of Directors is now predominantly composed by independent<br> directors (6 out of 9). |
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| • | The<br> Board fees were set at eleven million pesos ($11,000,000) for attendance to each meeting<br> and two million pesos ($2,000,000) for attendance to each committee session. |
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Presidency of the Company:
Due to its appointment as member and chairman of the Board of Directors of the company, Mr. Luis Carlos Sarmiento Gutiérrez resigned from his position as President of the company. The Board of Directors unanimously elected Dr. María Lorena Gutiérrez Botero as the new President of the company.
Policy Amendments:
As a result of the amendments to the By-laws, the “Policy of Appointment and Remuneration of the Board of Directors” was amended by the Shareholders regarding the sections related to the alternate members.
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GRUPO AVAL ACCIONESY VALORES S.A.
Separate FinancialStatements
Below, we present a summary of our financial statements at the separate level by the end of the first quarter of 2024. 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.
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 March 31^st^, 2024 totaled Ps 20,301.2 billion, decreasing 2.1% or Ps 442.3 billion versus March 31^st^, 2023 and remained stable compared with December 31^st^, 2023. The annual decrease is mainly explained by lower dividends declared by our subsidiaries.
Liabilities
Total liabilities as of March 31^st^, 2024 totaled Ps 3,389.0 billion, increasing 10.6% or Ps 323.7 billion versus December 31^st^, 2023 and decreasing 16.3% or Ps 661.9 billion versus March 31^st^, 2023.
The annual decrease is mainly explained by (i) 40.0% or Ps 451.6 billion decrease in accounts payable due to lower dividends declared by our company to shareholders, (ii) a 12.5% or Ps 218.5 billion decrease in borrowings at amortized cost in line with the annually appreciation of the Colombian Peso, and (iii) a 20.0% or Ps 224.5 billion decrease in outstanding bonds due to FX movements On the other hand, the quarterly increase is mainly due to the 86.3% or Ps 314.0 billion increase in accounts payable due to seasonality of dividends.
The financial indebtedness of Grupo Aval did not present material changes compared to what was reported as of December 31^st^, 2023.
Equity
As of March 31^st^, 2024, shareholders' equity was Ps 16,912.2, 1.9% less than that reported on December 31^st^, 2023 and more by 1.3% or Ps 219.6 from the equity reported as of March 31^st^, 2023. This movement reflects mainly dividends.
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.
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During the 1Q24 we presented a net profit from of Ps 119.6 billion, increasing 57.3% versus 4Q23 and decreasing by 71.2% compared to 1Q23. The increase in profits is explained by a higher equity method income.
Our banking subsidiaries continue to experience challenges related to higher cost of credit but there are positive trends on margins, fees and efficiency. Our non-financial sector performed as expected decreasing 29.2% yearly and our pension fund had a strong quarter related to performance-based fees.
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Informationrelated to Grupo Aval Acciones y Valores S.A. (Holding Company) and Grupo Aval Limited
The holding company recorded a total gross indebtedness of Ps 1,653.7 billion (Ps 508.5 billion of bank debt and Ps 1,145.2 billion of bonds denominated in Colombian pesos) as of March 31^st^, 2024. 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 March 31^st^, 2024 , the total amount outstanding (including interests payable) of such bonds was USD 1.0 billion, or Ps 3,844.8 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 operating income and the returns on its cash & cash equivalents.
When combined, Grupo Aval Acciones y Valores S.A. and Grupo Aval Ltd. had Ps 530.8 billion of total liquid assets, a total gross indebtedness of Ps 5,498.6 billion and a net indebtedness of Ps 4,967.8 billion as of March 31^st^, 2024. In addition to liquid assets, has Ps 1,237.4 billion in loans with related parties and Grupo Aval Ltd. has Ps 2,007.4 billion in investments in AT1 instruments.
| Total<br> liquid assets as of March 31, 2024 | |
|---|---|
| Cash and cash equivalents | 408.5 |
| Fixed income investments | 122.3 |
| Total<br> liquid assets | 530.8 |
As of March 31st, 2024 our combined double leverage (calculated as investments in subsidiaries at book value, subordinated loans, AT1 investments, and goodwill as a percentage of shareholders' equity) was 1.23x. Finally, we present an evolution of our key ratios on a combined basis:
| Debt<br> service coverage and leverage ratios | 1Q23 | 4Q23 | 1Q24 | Δ | |
|---|---|---|---|---|---|
| 1Q24<br> vs. 4Q23 | 1Q24<br> vs. 1Q23 | ||||
| Double leverage (1) | 1.27x | 1.22x | 1.23x | 0.00 | -0.04 |
| Net debt / Core earnings (2)(3) | 6.21x | 3.30x | 3.42x | 0.12 | -2.79 |
| Net debt / Cash dividends (2)(3) | 14.73x | 4.78x | 4.95x | 0.17 | -9.78 |
| Core Earnings / Interest Expense (2) | 2.06x | 3.60x | 3.73x | 0.13 | 1.67 |
(1) Double leverage is calculated as investments in subsidiaries at book value (excluding revaluations), subordinated loans, AT1 investments 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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DEFINITIONS
Cost of Riskcalculated as Impairment loss on loans and other accounts receivable net of recoveries of charged-off assets divided by average gross loans
Efficiency Ratiois 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
Fee income ratiois 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.
Gross loans excludes interbank and overnight funds.
Interest EarningAssets are calculated as the sum of average gross loans, average interbanks and average investments.
Net InterestIncome is the difference between Total Interest Income and Total Interest Expense.
Net InterestMargin includes net interest income plus net trading income from debt and equity investments at FVTPL divided by total average interest-earning assets.
NIM on Loansis calculated as Net Interest Income on Loans to Average loans and financial leases.
NIM on Investmentsis 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
Non-controllinginterest refers to the participation of minority shareholders in a subsidiary’s equity or net 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.
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Grupo Aval Accionesy Valores S.A.
Consolidated FinancialStatements Under IFRS
Financial StatementsUnder IFRS
Information in Ps.Billions
| Consolidated<br> Statement of Financial Position | 1Q23 | 4Q23 | 1Q24 | Δ | |
|---|---|---|---|---|---|
| 1Q24<br> vs. 4Q23 | 1Q24<br> vs. 1Q23 | ||||
| Cash and cash<br> equivalents | 19,327.8 | 18,597.9 | 18,568.3 | -0.2% | -3.9% |
| Investment<br> and trading assets | |||||
| Debt securities | 5,145.6 | 7,113.4 | 7,770.1 | 9.2% | 51.0% |
| Equity securities | 6,525.1 | 6,260.2 | 6,378.3 | 1.9% | -2.3% |
| Derivative assets | 1,914.8 | 2,077.6 | 1,236.0 | -40.5% | -35.4% |
| Trading assets | 13,585.5 | 15,451.1 | 15,384.5 | -0.4% | 13.2% |
| Investments in debt securities<br> at FVTPL (non compliant with SPPI test) | 1.4 | 1.9 | 1.9 | 0.6% | 38.6% |
| Investments in securities at FVOCI | 22,178.1 | 24,444.1 | 26,349.2 | 7.8% | 18.8% |
| Investments in debt securities<br> at AC | 9,789.6 | 9,979.7 | 10,209.0 | 2.3% | 4.3% |
| Investment<br> securities | 31,969.1 | 34,425.7 | 36,560.0 | 6.2% | 14.4% |
| Hedging derivatives<br> assets | 35.1 | 48.7 | 58.9 | 21.1% | 67.9% |
| Gross loans | |||||
| Commercial loans | 110,049.8 | 107,440.4 | 109,840.6 | 2.2% | -0.2% |
| Commercial loans | 106,129.9 | 107,047.8 | 109,461.4 | 2.3% | 3.1% |
| Interbank & overnight funds | 3,920.0 | 392.6 | 379.2 | -3.4% | -90.3% |
| Consumer loans | 60,186.9 | 59,999.6 | 60,049.7 | 0.1% | -0.2% |
| Mortgages loans | 18,026.1 | 18,486.2 | 18,853.0 | 2.0% | 4.6% |
| Microcredit loans | 267.6 | 277.5 | 284.9 | 2.6% | 6.4% |
| Total gross<br> loans | 188,530.4 | 186,203.8 | 189,028.1 | 1.5% | 0.3% |
| Loss allowance | (9,427.5) | (10,035.7) | (10,557.2) | 5.2% | 12.0% |
| Total<br> loans, net | 179,102.9 | 176,168.1 | 178,471.0 | 1.3% | -0.4% |
| Other accounts<br> receivable, net | 24,384.5 | 25,617.2 | 26,442.4 | 3.2% | 8.4% |
| Non-current<br> assets held for sale | 100.1 | 101.2 | 103.1 | 1.9% | 3.0% |
| Investments<br> in associates and joint ventures | 1,191.4 | 1,290.7 | 1,123.9 | -12.9% | -5.7% |
| Own-use property, plant and equipment<br> for own-use and given in operating lease, net | 4,695.6 | 4,427.8 | 4,447.9 | 0.5% | -5.3% |
| Right-of-use assets | 1,382.7 | 1,337.0 | 1,419.7 | 6.2% | 2.7% |
| Investment properties | 956.5 | 1,000.5 | 996.5 | -0.4% | 4.2% |
| Biological assets | 213.1 | 230.7 | 230.3 | -0.2% | 8.1% |
| Tangible<br> assets | 7,247.8 | 6,995.9 | 7,094.4 | 1.4% | -2.1% |
| Goodwill | 2,232.2 | 2,202.2 | 2,203.0 | 0.0% | -1.3% |
| Concession arrangement rights | 13,536.2 | 13,557.3 | 13,568.4 | 0.1% | 0.2% |
| Other intangible assets | 2,082.7 | 2,382.4 | 2,450.9 | 2.9% | 17.7% |
| Intangible<br> assets | 17,851.1 | 18,141.9 | 18,222.3 | 0.4% | 2.1% |
| Current | 1,950.1 | 2,596.8 | 2,993.9 | 15.3% | 53.5% |
| Deferred | 1,525.4 | 1,280.9 | 1,403.5 | 9.6% | -8.0% |
| Income<br> tax assets | 3,475.5 | 3,877.7 | 4,397.4 | 13.4% | 26.5% |
| Other assets | 607.4 | 465.6 | 465.7 | 0.0% | -23.3% |
| Total<br> assets | 298,878.2 | 301,181.6 | 306,892.0 | 1.9% | 2.7% |
| Trading liabilities | 1,517.6 | 2,154.4 | 1,193.1 | -44.6% | -21.4% |
| Hedging derivatives<br> liabilities | 5.6 | 217.6 | 160.0 | -26.5% | N.A. |
| Customer deposits | 178,352.4 | 181,987.4 | 189,212.2 | 4.0% | 6.1% |
| Checking accounts | 23,959.4 | 23,809.9 | 22,465.4 | -5.6% | -6.2% |
| Time deposits | 85,133.4 | 86,597.5 | 91,149.9 | 5.3% | 7.1% |
| Savings deposits | 68,331.2 | 71,149.9 | 75,230.8 | 5.7% | 10.1% |
| Other deposits | 928.3 | 430.2 | 366.1 | -14.9% | -60.6% |
| Financial obligations | 70,038.5 | 65,541.3 | 66,085.7 | 0.8% | -5.6% |
| Interbank borrowings and overnight<br> funds | 8,799.8 | 15,081.9 | 17,222.0 | 14.2% | 95.7% |
| Borrowings from banks and others | 29,346.9 | 22,218.5 | 21,170.2 | -4.7% | -27.9% |
| Bonds issued | 27,352.4 | 23,427.8 | 22,829.1 | -2.6% | -16.5% |
| Borrowings from development entities | 4,539.5 | 4,813.1 | 4,864.3 | 1.1% | 7.2% |
| Total<br> financial liabilities at amortized cost | 248,390.9 | 247,528.7 | 255,297.8 | 3.1% | 2.8% |
| Legal related | 228.0 | 217.7 | 197.2 | -9.4% | -13.5% |
| Other provisions | 914.0 | 865.6 | 847.9 | -2.0% | -7.2% |
| Provisions | 1,142.0 | 1,083.3 | 1,045.0 | -3.5% | -8.5% |
| Current | 319.8 | 268.3 | 312.5 | 16.5% | -2.3% |
| Deferred | 5,244.3 | 5,546.6 | 5,641.8 | 1.7% | 7.6% |
| Income<br> tax liabilities | 5,564.2 | 5,815.0 | 5,954.3 | 2.4% | 7.0% |
| Employee benefits | 886.9 | 907.8 | 926.8 | 2.1% | 4.5% |
| Other liabilities | 11,144.0 | 11,954.4 | 11,238.8 | -6.0% | 0.9% |
| Total<br> liabilities | 268,651.1 | 269,661.2 | 275,816.0 | 2.3% | 2.7% |
| Equity<br> attributable to owners of the parent | 16,175.7 | 16,782.7 | 16,452.2 | -2.0% | 1.7% |
| Non-controlling<br> interest | 14,051.3 | 14,737.7 | 14,623.9 | -0.8% | 4.1% |
| Total<br> equity | 30,227.0 | 31,520.4 | 31,076.0 | -1.4% | 2.8% |
| Total<br> liabilities and equity | 298,878.2 | 301,181.6 | 306,892.0 | 1.9% | 2.7% |
Find in our website https://www.grupoaval.com/investor-relations/financial-results, under Quarterly results -> Information for Local Investors, our consolidated and separate financial statements and accompanying notes.
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Grupo Aval Accionesy Valores S.A.
Consolidated FinancialStatements Under IFRS
Financial StatementsUnder IFRS
Information in Ps.Billions
| Consolidated<br> Statement of income | 1Q23 | 4Q23 | 1Q24 | Δ | |
|---|---|---|---|---|---|
| 1Q24<br> vs. 4Q23 | 1Q24<br> vs. 1Q23 | ||||
| Interest<br> income | |||||
| Loan portfolio | 6,361.4 | 6,844.9 | 6,593.4 | -3.7% | 3.6% |
| Interests on investments in debt<br> securities | 646.9 | 576.9 | 642.7 | 11.4% | -0.6% |
| Total<br> interest income | 7,008.3 | 7,421.9 | 7,236.2 | -2.5% | 3.3% |
| Interest expense | |||||
| Checking accounts | 62.5 | 80.7 | 73.0 | -9.5% | 16.9% |
| Time deposits | 2,216.4 | 2,608.1 | 2,525.5 | -3.2% | 13.9% |
| Savings deposits | 1,591.8 | 1,527.3 | 1,442.5 | -5.6% | -9.4% |
| Total interest<br> expenses on deposits | 3,870.6 | 4,216.1 | 4,041.0 | -4.2% | 4.4% |
| Interbank borrowings and overnight<br> funds | 395.9 | 550.0 | 487.0 | -11.5% | 23.0% |
| Borrowings from banks and others | 487.7 | 456.1 | 420.0 | -7.9% | -13.9% |
| Bonds issued | 562.6 | 507.2 | 457.0 | -9.9% | -18.8% |
| Borrowings from development entities | 142.6 | 162.1 | 150.9 | -6.9% | 5.8% |
| Total interest<br> expenses on financial obligations | 1,588.9 | 1,675.5 | 1,514.9 | -9.6% | -4.7% |
| Total<br> interest expense | 5,459.5 | 5,891.6 | 5,555.8 | -5.7% | 1.8% |
| Net<br> interest income | 1,548.8 | 1,530.3 | 1,680.4 | 9.8% | 8.5% |
| Impairment<br> losses (recoveries) on financial assets | |||||
| Loans and other accounts receivable | 920.5 | 1,370.1 | 1,485.4 | 8.4% | 61.4% |
| Other financial assets | (0.3) | (2.3) | 3.3 | N.A | N.A |
| Recovery of charged-off financial<br> assets | (133.7) | (132.5) | (128.6) | -2.9% | -3.8% |
| Net<br> impairment loss on financial assets | 786.5 | 1,235.3 | 1,360.1 | 10.1% | 72.9% |
| Net<br> interest income, after impairment losses | 762.3 | 295.0 | 320.3 | 8.6% | -58.0% |
| Income from<br> commissions and fees | |||||
| Banking fees (1) | 664.4 | 704.2 | 678.9 | -3.6% | 2.2% |
| Trust activities | 122.9 | 112.9 | 120.3 | 6.6% | -2.1% |
| Pension and severance fund management | 250.0 | 204.7 | 281.9 | 37.7% | 12.8% |
| Bonded warehouse services | 47.3 | 45.7 | 45.8 | 0.2% | -3.2% |
| Income<br> from commissions and fees | 1,084.5 | 1,067.5 | 1,126.9 | 5.6% | 3.9% |
| Expenses from commissions and<br> fees | 242.2 | 300.6 | 234.6 | -22.0% | -3.2% |
| Net<br> income from commissions and fees | 842.3 | 766.9 | 892.3 | 16.3% | 5.9% |
| Income from sales of goods and<br> services | 2,927.5 | 3,077.9 | 2,592.5 | -15.8% | -11.4% |
| Costs and expenses from sales<br> of goods and services | 1,763.8 | 2,280.6 | 1,769.1 | -22.4% | 0.3% |
| Gross<br> profit from sales of goods and services | 1,163.6 | 797.3 | 823.4 | 3.3% | -29.2% |
| Total trading investment income | 591.0 | 708.8 | 301.4 | -57.5% | -49.0% |
| Total derivatives income | (672.3) | (506.5) | (57.8) | -88.6% | -91.4% |
| Net<br> trading income | (81.3) | 202.3 | 243.6 | 20.4% | N.A |
| Net income from other financial<br> instruments mandatory at FVTPL | 93.9 | 76.6 | 104.5 | 36.4% | 11.2% |
| Other income | |||||
| Foreign exchange gains (losses),<br> net | 488.5 | 251.5 | 31.9 | -87.3% | -93.5% |
| Net gain on sale of investments<br> and OCI realization | 27.5 | 44.5 | 53.4 | 20.0% | 93.9% |
| Gain on the sale of non-current<br> assets held for sale | 1.1 | 12.0 | 3.9 | -67.4% | N.A. |
| Income from non-consolidated investments<br> (2) | 214.5 | 85.9 | 225.5 | 162.5% | 5.1% |
| Net gains on asset valuations | 0.0 | 90.1 | 8.1 | -91.1% | N.A. |
| Other income from operations | 144.2 | 174.8 | 86.6 | -50.5% | -40.0% |
| Total<br> other income | 875.9 | 658.7 | 409.3 | -37.9% | -53.3% |
| Other<br> expenses | |||||
| Loss on the sale of non-current<br> assets held for sale | 0.2 | 0.1 | 0.4 | N.A. | 124.1% |
| Personnel expenses | 773.4 | 748.6 | 768.8 | 2.7% | -0.6% |
| General and administrative expenses | 1,087.2 | 1,182.3 | 1,088.9 | -7.9% | 0.2% |
| Depreciation and amortization | 166.6 | 167.4 | 172.6 | 3.1% | 3.6% |
| Impairment loss on other assets | 0.4 | 2.6 | 1.0 | -62.7% | 159.1% |
| Other operating expenses | 49.2 | 75.9 | 62.9 | -17.1% | 27.7% |
| Total<br> other expenses | 2,077.0 | 2,177.0 | 2,094.6 | -3.8% | 0.8% |
| Net<br> income before income tax expense | 1,579.8 | 619.7 | 698.8 | 12.8% | -55.8% |
| Income tax expense | 532.6 | 251.1 | 225.7 | -10.1% | -57.6% |
| Net<br> income for the period | 1,047.3 | 368.6 | 473.1 | 28.4% | -54.8% |
| Net<br> income for the period attibutable to: | |||||
| Non-controlling<br> interest | 622.2 | 285.7 | 359.4 | 25.8% | -42.2% |
| Net<br> income attributable to owners of the parent | 425.1 | 82.9 | 113.7 | 37.2% | -73.2% |
| ^(1)^Includes | commissions<br> on banking services, office network services, credit and debit card fees, fees on drafts,<br> checks and checkbooks and other fees | ||||
| --- | --- | ||||
| ^(2)^ | Includes<br> share of profit of equity accounted investees, net of tax, and dividend income. | ||||
| --- | --- |
Find in our website https://www.grupoaval.com/investor-relations/financial-results, under Quarterly results -> Information for Local Investors, our consolidated and separate financial statements and accompanying notes.
| 26 |
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| --- |
GRUPO AVAL ACCIONESY VALORES S.A.
Separate FinancialStatements
Financial StatementsUnder Colombian IFRS
Information in Ps.Billions
| Separate<br> Statement of Financial Position | 1Q23 | 4Q23 | 1Q24 | Δ | |
|---|---|---|---|---|---|
| 1Q24<br> vs. 4Q23 | 1Q24<br> vs. 1Q23 | ||||
| Current assets | |||||
| Cash and cash equivalents | 166.1 | 157.3 | 159.5 | 1.4% | -4.0% |
| Trading securities | 0.2 | 0.3 | 0.3 | 5.1% | 38.7% |
| Financial assets at amortized<br> cost | 0.0 | 18.7 | 18.8 | 0.5% | N.A |
| Accounts receivable from related<br> parties | 1,029.9 | 445.0 | 760.8 | 71.0% | -26.1% |
| Taxes paid in advance | 6.9 | 6.0 | 4.3 | -27.8% | -37.4% |
| Other accounts receivable | 0.0 | 0.0 | 0.0 | -35.5% | 42.9% |
| Other non-financial assets | 0.1 | 0.1 | 0.1 | 43.7% | 49.5% |
| Total<br> current assets | 1,203.1 | 627.3 | 943.9 | 50.5% | -21.5% |
| Non-current<br> Assets | |||||
| Investments in subsidiaries and<br> associates | 18,082.6 | 18,645.2 | 18,317.6 | -1.8% | 1.3% |
| Accounts receivable from related<br> parties | 1,454.4 | 1,032.0 | 1,037.4 | 0.5% | -28.7% |
| Property and equipment, net | 3.2 | 2.4 | 2.0 | -16.1% | -37.7% |
| Deferred tax assets | 0.1 | 0.3 | 0.3 | 6.5% | 138.7% |
| Total<br> non-current Assets | 19,540.4 | 19,679.9 | 19,357.3 | -1.6% | -0.9% |
| Total<br> assets | 20,743.5 | 20,307.2 | 20,301.2 | 0.0% | -2.1% |
| Liabilities<br> and shareholders' equity | |||||
| Current liabilities | |||||
| Borrowings at amortized cost | 21.0 | 20.9 | 20.3 | N.A | -3.4% |
| Outstanding bonds at amortized<br> cost | 14.3 | 237.2 | 245.2 | 3.4% | N.A. |
| Accounts payable | 1,129.6 | 364.0 | 678.0 | 86.3% | -40.0% |
| Employee benefits | 2.3 | 2.9 | 2.7 | -6.9% | 15.5% |
| Tax liabilities | 8.6 | 13.3 | 10.8 | -19.2% | 24.8% |
| Other non-financial liabilities | 1.2 | 1.2 | 1.2 | 0.0% | 0.0% |
| Total<br> current liabilities | 1,177.1 | 639.5 | 958.2 | 49.8% | -18.6% |
| Long-term liabilities | |||||
| Borrowings at amortized cost | 1,749.3 | 1,525.8 | 1,530.8 | 0.3% | -12.5% |
| Outstanding bonds | 1,124.5 | 900.0 | 900.0 | 0.0% | -20.0% |
| Total<br> long-term liabilities | 2,873.8 | 2,425.8 | 2,430.8 | 0.2% | -15.4% |
| Total<br> liabilities | 4,050.9 | 3,065.3 | 3,389.0 | 10.6% | -16.3% |
| Shareholders'<br> equity | |||||
| Total<br> shareholders' equity | 16,692.6 | 17,241.9 | 16,912.2 | -1.9% | 1.3% |
| Total<br> liabilities and shareholders' equity | 20,743.5 | 20,307.2 | 20,301.2 | 0.0% | -2.1% |
GRUPO AVAL ACCIONESY VALORES S.A.
Separate FinancialStatements
Financial StatementsUnder Colombian IFRS
Information in Ps.Billions
| Separate<br> Statement of Financial Position | 0 | 1Q23 | 4Q23 | 1Q24 | 0 | Δ | |
|---|---|---|---|---|---|---|---|
| 1Q24<br> vs. 4Q23 | 1Q24<br> vs. 1Q23 | ||||||
| Operating<br> revenue | |||||||
| Equity method income, net | 412.5 | 83.9 | 119.4 | 42.3% | -71.1% | ||
| Other revenue from ordinary activities | 116.6 | 101.9 | 107.3 | 5.2% | -8.0% | ||
| Total<br> operating revenue | 529.1 | 185.8 | 226.7 | 22.0% | -57.2% | ||
| Expenses, net | |||||||
| Administrative expenses | 18.7 | 22.2 | 22.9 | 3.5% | 22.6% | ||
| Other expenses | -0.1 | -0.4 | 0.0 | -101.6% | -106.1% | ||
| Losses from exchange differences | -0.1 | 1.1 | 0.0 | -97.3% | -122.3% | ||
| Operating<br> income | 510.6 | 163.0 | 203.7 | 25.0% | -60.1% | ||
| Financial expenses | 81.5 | 79.4 | 73.1 | -7.9% | -10.3% | ||
| Earnings<br> before taxes | 429.1 | 83.6 | 130.6 | 56.2% | -69.6% | ||
| Income tax expense | 13.2 | 7.6 | 11.0 | 45.8% | -16.3% | ||
| Net<br> income | 415.9 | 76.1 | 119.6 | 57.3% | -71.2% | ||
| Net<br> income | 415.9 | 76.1 | 119.6 | 57.3% | -71.2% |
Find in our website https://www.grupoaval.com/investor-relations/financial-results, under Quarterly results -> Information for Local Investors, our consolidated and separate financial statements and accompanying notes.
| 27 |
| --- | | Report of 1Q2024 | | --- |
Investor Relations Contact
INVESTORRELATIONS@grupoaval.com
Nicolás Noreña
Financial Planning and Investor Relations Sénior Manager
Tel: 601 743 32 22 x 23400
E-mail: nnorena@grupoaval.com
Simón Franky
Investor Relations and Finance Director
Tel: 601 743 32 22 x 23351
Email sfranky@grupoaval com
Alejandro Mermeo
Financial Planning and Investor Relations Analyst
Tel: 601 743 32 22 x 2337
Email mpalacio@grupoaval com
| 28 |
| --- |
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: May 15, 2024
| GRUPO AVAL ACCIONES Y VALORES S.A. | ||
|---|---|---|
| By: | /s/ Jorge Adrián<br> Rincón Plata | |
| Name: | Jorge Adrián Rincón Plata | |
| Title: | Chief Legal Counsel |