6-K
Grupo Aval Acciones Y Valores S.A. (AVAL)
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 ExchangeAct Of 1934
For the month of May 2023
Commission File Number: 000-54290
Grupo Aval Acciones y Valores S.A.
(Exact name of registrant as specified in itscharter)
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 |
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Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
| Yes | No | X |
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Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
| Yes | No | X |
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GRUPO AVAL ACCIONES Y VALORES S.A.
TABLE OF CONTENTS
| ITEM | |
|---|---|
| 1. | Report of First Quarter 2023 Consolidated Results |
Item 1
| Disclaimer |
|---|
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.
| 1 |
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| 1Q23 Results Report<br><br> <br><br><br> <br>Information reported in Ps billions and underIFRS |
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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 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 March 31, 2023, the Company has the following issuances:
| Stocks | Securities issues in force | ||
|---|---|---|---|
| Type of security | Common stock | Preferred stock | |
| Trading system | Stock exchange | Stock exchange | |
| Stock exchange | Colombian Stock Exchange (BVC) | ||
| Outstanding Shares | 16,204,145,980 | 7,539,329,774 | |
| Issue amount | 16,204,145,980 | 7,539,329,774 | |
| Amount placed | 16,204,145,980 | 7,539,329,774 | |
| Local Bonds | |||
| --- | --- | --- | --- |
| Year | Principal<br><br> <br><br><br> <br>(million) | Rate | Rating |
| Issue of 2009 - Series A - 15 years | 124,520 | IPC+5.2% | AAA –BRC Investor<br><br> <br><br><br> <br>Services S.A. |
| Issue of 2016 - Series A - 10 years | 93,000 | IPC+3.86% | |
| Issue of 2016 - Series A - 20 years | 207,000 | IPC+4.15% | |
| Issue of 2017 - Series A - 25 years | 300,000 | IPC +3.99% | |
| Issue of 2019 - Series C - 5 years | 100,000 | 6.42% | |
| Issue of 2019 - Series A - 20 years | 300,000 | IPC +3.69% | |
| 1,124,520 | |||
| International Bonds | |||
| Issue of 2020 - 10 years | US 1,000,000 | 4.375% | Ba2 / Negative<br><br> <br><br><br> <br>(Moody’s)<br><br> <br>BB+ Stable (Fitch) |
Main domicile: Bogotá D.C., Colombia
Address: Carrera 13 No 26A – 47- 23rd Floor
| 2 | |
|---|---|
| Table of contents | |
| --- | |
| Key results of 1Q23 | 4 |
| --- | --- |
| Consolidated Financial Results | 5 |
| – Statement of Financial Position Analysis | 5 |
| – 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 | 22 |
| Definitions | 26 |
EXHIBIT 1 – Consolidated FinancialStatements
EXHIBIT 2 – Separate FinancialStatements
| 3 |
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| Report of 1Q2023 consolidated results<br><br> <br><br><br> <br>Information reported in Ps billions and under IFRS, except per share information |
| --- |
Bogotá, May 15th, 2023. Grupo Aval S.A. (NYSE:AVAL) reported a consolidated attributable net income of Ps 425.1 billion (Ps 17.9 pesos per share) for 1Q23. ROAE was 10.4% and ROAA was 1.4% for 1Q23.
| COP $tn | 1Q22 | 4Q22 | 1Q23 | 1Q23 vs 4Q22 | 1Q23 vs 1Q22 | |
|---|---|---|---|---|---|---|
| Balance Sheet | Gross Loans | $ 158.3 | $ 182.3 | $ 184.6 | 1.2% | 16.6% |
| Deposits | $ 152.7 | $ 173.3 | $ 178.4 | 2.9% | 16.8% | |
| Deposits/Net Loans | 0.99 x | 0.97 x | 1.00 x | 0.03 x | 0.00 x | |
| Loan Quality | 90 days PDLs / Gross Loans | 3.5% | 3.3% | 3.4% | 19 bps | (9) bps |
| Allowance/90 days PDLs | 1.58 x | 1.55 x | 1.48 x | -0.07 x | -0.10 x | |
| Cost of risk | 1.7% | 1.5% | 1.7% | 25 bps | (2) bps | |
| Profitability | Net interest margin | 4.1% | 3.5% | 3.7% | 20 bps | (43) bps |
| Fee income Ratio | 16.2% | 19.8% | 19.0% | (86) bps | 279 bps | |
| Efficiency Ratio | 38.2% | 55.5% | 46.6% | (896) bps | 834 bps | |
| Attributable net income | $ 1.73 | -$ 0.33 | $ 0.43 | -228.7% | -75.4% | |
| ROAA | 3.8% | -0.6% | 1.4% | 201 bps | (238) bps | |
| ROAE | 35.3% | -8.0% | 10.4% | 1,837 bps | (2,484) bps | |
| Pro<br>forma ratio | ||||||
| --- | ||||||
| • | Pro-forma ratios for 1Q22 are based on reported revenues and expenses, associated to each ratio; however, the denominators averages used to calculate these ratios contain pro-forma figures from previous quarters. | |||||
| --- | --- |
Grossloans excludes interbank and overnight funds. PDLs 90+ defined as loans more than 90 day s 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.
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| Report of 1Q2023 consolidated results<br><br> <br><br><br> <br>Information reported in Ps billions and under IFRS |
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GrupoAval Acciones y Valores S.A.
Consolidated Financial Statements Under IFRS
Financial Statements Under IFRS
Information in Ps. Billions
| Consolidated Statement of Financial Position | 1Q22 | 4Q22 | 1Q23 | D | |
|---|---|---|---|---|---|
| 1Q23 vs. 4Q22 | 1Q23 vs. 1Q22 | ||||
| Cash<br> and cash equivalents | 16,407.1 | 17,032.9 | 19,327.8 | 13.5% | 17.8% |
| Trading<br> assets | 9,846.7 | 11,841.4 | 13,585.5 | 14.7% | 38.0% |
| Investment<br> securities | 31,550.3 | 33,674.5 | 31,969.1 | -5.1% | 1.3% |
| Hedging<br> derivatives assets | 53.8 | 20.9 | 35.1 | 68.3% | -34.7% |
| Total<br> loans, net | 154,054.5 | 179,115.8 | 179,102.9 | 0.0% | 16.3% |
| Tangible<br> assets | 7,003.4 | 7,235.4 | 7,247.8 | 0.2% | 3.5% |
| Goodwill | 2,220.5 | 2,248.2 | 2,232.2 | -0.7% | 0.5% |
| Concession<br> arrangement rights | 11,338.9 | 13,242.7 | 13,536.2 | 2.2% | 19.4% |
| Other<br> assets | 28,648.9 | 31,179.4 | 31,841.5 | 2.1% | 11.1% |
| Total assets | 261,124.1 | 295,591.2 | 298,878.2 | 1.1% | 14.5% |
| Trading<br> liabilities | 1,360.4 | 1,757.6 | 1,517.6 | -13.7% | 11.6% |
| Hedging<br> derivatives liabilities | 52.6 | 3.6 | 5.6 | 55.7% | -89.4% |
| Customer<br> deposits | 152,708.1 | 173,341.1 | 178,352.4 | 2.9% | 16.8% |
| Interbank<br> borrowings and overnight funds | 11,156.8 | 9,087.9 | 8,799.8 | -3.2% | -21.1% |
| Borrowings<br> from banks and others | 17,937.9 | 30,309.4 | 29,346.9 | -3.2% | 63.6% |
| Bonds<br> issued | 30,414.2 | 28,362.2 | 27,352.4 | -3.6% | -10.1% |
| Borrowings<br> from development entities | 3,270.0 | 4,357.3 | 4,539.5 | 4.2% | 38.8% |
| Other<br> liabilities | 14,623.5 | 17,550.5 | 18,737.1 | 6.8% | 28.1% |
| Total liabilities | 231,523.5 | 264,769.6 | 268,651.1 | 1.5% | 16.0% |
| Equity attributable to owners of the parent | 16,230.3 | 16,467.0 | 16,175.7 | -1.8% | -0.3% |
| Non-controlling interest | 13,370.3 | 14,354.7 | 14,051.3 | -2.1% | 5.1% |
| Total equity | 29,600.6 | 30,821.7 | 30,227.0 | -1.9% | 2.1% |
| Total liabilities and equity | 261,124.1 | 295,591.2 | 298,878.2 | 1.1% | 14.5% |
| Consolidated Statement of Income | 1Q22 | 4Q22 | 1Q23 | D | |
| Interest<br> income | 3,759.8 | 6,143.6 | 7,008.3 | 14.1% | 86.4% |
| Interest<br> expense | 1,679.2 | 4,378.4 | 5,459.5 | 24.7% | N.A. |
| Net interest income | 2,080.6 | 1,765.2 | 1,548.8 | -12.3% | -25.6% |
| Loans and other<br> accounts receivable | 807.3 | 841.7 | 920.5 | 9.4% | 14.0% |
| Other financial<br> assets | 18.9 | (0.4) | (0.3) | -30.6% | -101.5% |
| Recovery of charged-off<br> financial assets | (130.8) | (188.3) | (133.7) | -29.0% | 2.2% |
| Net impairment loss on financial assets | 695.4 | 653.0 | 786.5 | 20.4% | 13.1% |
| Net interest income, after impairment losses | 1,385.2 | 1,112.2 | 762.3 | -31.5% | -45.0% |
| Net<br> income from commissions and fees | 710.0 | 749.7 | 842.3 | 12.4% | 18.6% |
| Gross<br> profit from sales of goods and services | 1,020.6 | 918.1 | 1,163.6 | 26.7% | 14.0% |
| Net<br> trading income | (287.3) | 609.0 | (81.3) | -113.3% | -71.7% |
| Net<br> income from other financial instruments mandatory at FVTPL | 73.9 | 68.2 | 93.9 | 37.7% | 27.1% |
| Total<br> other income | 793.3 | (327.9) | 875.9 | N.A | 10.4% |
| Total<br> other expenses | 1,679.5 | 2,101.0 | 2,077.0 | -1.1% | 23.7% |
| Net income before income tax expense | 2,016.2 | 1,028.3 | 1,579.8 | 53.6% | -21.6% |
| Income tax expense | 633.0 | 526.3 | 532.6 | 1.2% | -15.9% |
| Net income for the period of continued operations | 1,383.2 | 502.0 | 1,047.3 | 108.6% | -24.3% |
| Net income for the period of discontinued operations | 1,597.5 | (929.4) | - | -100.0% | -100.0% |
| Net income for the period | 2,980.8 | (427.5) | 1,047.3 | N.A | -64.9% |
| Non-controlling<br> interest | 1,251.1 | (97.1) | 622.2 | N.A | -50.3% |
| Net income attributable to owners of the parent | 1,729.7 | (330.4) | 425.1 | N.A | -75.4% |
| Key ratios | 1Q22 | 4Q22 | 1Q23 | ||
| Net Interest<br> Margin(1) | 4.4% | 3.3% | 2.8% | ||
| Net Interest<br> Margin (including net trading income)(1) | 4.1% | 3.5% | 3.7% | ||
| Efficiency ratio(2) | 38.2% | 55.5% | 46.7% | ||
| 90 days PDL /<br> Gross loans (5) | 3.5% | 3.3% | 3.4% | ||
| Provision expense<br> / Average gross loans (6) | 1.7% | 1.5% | 1.7% | ||
| Allowance / 90<br> days PDL (5) | 1.58 | 1.55 | 1.48 | ||
| Allowance / Gross<br> loans | 5.6% | 5.0% | 5.1% |  Pro<br>forma ratio |
|
| Charge-offs /<br> Average gross loans (6) | 2.0% | 1.8% | 1.8% | ||
| Total loans,<br> net / Total assets | 59.0% | 60.6% | 59.9% | ||
| Deposits / Total<br> loans, net | 99.1% | 96.8% | 99.6% | ||
| Key ratios | 1Q22 | 4Q22 | 1Q23 | ||
| Equity / Assets | 11.3% | 10.4% | 10.1% | ||
| Tangible equity<br> ratio (7) | 10.0% | 9.1% | 8.8% | ||
| ROAA(3) | 3.8% | -0.6% | 1.4% | ||
| ROAE(4) | 35.3% | -8.0% | 10.4% | ||
| Shares outstanding<br> (EoP) | 22,281,017,159 | 23,743,475,754 | 23,743,475,754 | ||
| Shares outstanding<br> (Average) | 22,281,017,159 | 23,743,475,754 | 23,743,475,754 | ||
| Common share<br> price (EoP) | 965.0 | 530.0 | 555.0 | ||
| Preferred share<br> price (EoP) | 852.0 | 570.0 | 558.9 | ||
| BV/ EoP shares<br> in Ps. | 728.4 | 693.5 | 681.3 | ||
| EPS | 77.6 | (13.9) | 17.9 | ||
| P/E (8) | 2.7 | (15.3) | 7.8 | ||
| P/BV (8) | 1.2 | 0.8 | 0.8 | ||
| • | Pro-forma ratios for 1Q22 are based on reported revenues and<br>expenses, associated to each ratio; however, the denominators avera ges used to calculate these ratios contain pro-forma figures from<br>previous quarters. | ||||
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(1) NIM is calculated as Net Interest Income divided by the average of Interest Earning Assets; (2) Efficiency Ratio is calculated as total otherexpenses 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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| Report of 1Q2023 consolidated results<br><br> <br><br><br> <br>Information reported in Ps billions and under IFRS |
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Consolidated Financial Results
Statement of Financial Position Analysis
| • | Pro-forma ratios for 1Q22 are based on reported revenues and expenses, associated to each ratio; however, the denominators averages<br>used to calculate these ratios contain pro-forma figures from previous quarters |
|---|
1. Assets
Total assets as of March 31^st^, 2023 totaled Ps 298,878.2 billion showing an increase of 14.5% versus March 31^st^, 2022 and an increase of 1.1% versus December 31^st^, 2022. Growth was mainly driven by (i) a 16.3% year over year growth in total loans, net to Ps 179,102.9 billion, (ii) a 38.0% yearly growth in trading assets, net to Ps 13,585.5 billion and (iii) a 11.1% yearly growth in other assets, net to Ps 31,841.5 billion.
1.1 Loan portfolio
Gross loans (excluding interbank and overnight funds) increased by 16.6% between March 31^st^, 2023 and March 31^st^, 2022 to Ps 184,610.5 billion mainly driven by (i) a 20.1% increase in Mortgages loans to Ps 18,026.1 billion, (ii) a 16.6% increase in Commercial loans to Ps 106,129.9 billion and (iii) a 15.8% increase in Consumer loans to Ps 60,186.9 billion.
Interbank & overnight funds decreased by 14.5% to Ps 3,920.0 billion during the last twelve months.
Loss allowance was Ps 9,427.5 billion as of March 31^st^, 2023 taking net loans to Ps 179,102.9 billion.
| Total loans, net | 1Q22 | 4Q22 | 1Q23 | D | |
|---|---|---|---|---|---|
| 1Q23 vs. 4Q22 | 1Q23 vs. 1Q22 | ||||
| Gross loans | |||||
| Commercial loans | 91,006.7 | 104,775.1 | 106,129.9 | 1.3% | 16.6% |
| Consumer loans | 51,984.3 | 59,419.4 | 60,186.9 | 1.3% | 15.8% |
| Mortgages loans | 15,010.3 | 17,883.4 | 18,026.1 | 0.8% | 20.1% |
| Microcredit loans | 292.6 | 267.7 | 267.6 | 0.0% | -8.5% |
| Gross loans | 158,293.9 | 182,345.6 | 184,610.5 | 1.2% | 16.6% |
| Interbank & overnight funds | 4,584.7 | 5,967.7 | 3,920.0 | -34.3% | -14.5% |
| Total gross loans | 162,878.7 | 188,313.4 | 188,530.4 | 0.1% | 15.7% |
| Loss allowance | (8,824.2) | (9,197.5) | (9,427.5) | 2.5% | 6.8% |
| Allowance for impairment of commercial loans | (5,346.5) | (5,494.2) | (5,380.1) | -2.1% | 0.6% |
| Allowance for impairment of consumer loans | (3,014.8) | (3,311.9) | (3,630.9) | 9.6% | 20.4% |
| Allowance for impairment of mortgages | (373.4) | (352.4) | (376.2) | 6.7% | 0.8% |
| Allowance for impairment of microcredit loans | (89.5) | (39.0) | (40.3) | 3.4% | -55.0% |
| Total loans, net | 154,054.5 | 179,115.8 | 179,102.9 | 0.0% | 16.3% |
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| Report of 1Q2023 consolidated results<br><br> <br><br><br> <br>Information reported in Ps billions and under IFRS | |||||
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The following table shows the gross loan composition per product of each of our loan categories.
| Gross loans | 1Q22 | 4Q22 | 1Q23 | D | |
|---|---|---|---|---|---|
| 1Q23 vs. 4Q22 | 1Q23 vs. 1Q22 | ||||
| General<br> purpose | 65,254.4 | 74,473.6 | 74,955.1 | 0.6% | 14.9% |
| Working<br> capital | 11,682.5 | 14,631.6 | 14,930.6 | 2.0% | 27.8% |
| Financial<br> leases | 10,042.3 | 10,862.0 | 10,892.9 | 0.3% | 8.5% |
| Funded<br> by development banks | 3,250.1 | 4,053.3 | 4,397.1 | 8.5% | 35.3% |
| Overdrafts | 413.5 | 436.6 | 432.4 | -1.0% | 4.6% |
| Credit<br> cards | 363.8 | 317.9 | 521.8 | 64.1% | 43.4% |
| Commercial loans | 91,006.7 | 104,775.1 | 106,129.9 | 1.3% | 16.6% |
| Payroll<br> loans | 30,860.5 | 33,306.7 | 33,360.4 | 0.2% | 8.1% |
| Personal<br> loans | 10,429.1 | 13,425.6 | 13,981.4 | 4.1% | 34.1% |
| Credit<br> cards | 5,932.9 | 7,023.6 | 7,192.8 | 2.4% | 21.2% |
| Automobile<br> and vehicle | 4,557.9 | 5,421.1 | 5,439.0 | 0.3% | 19.3% |
| Financial<br> leases | 23.9 | 18.5 | 17.2 | -6.8% | -27.9% |
| Overdrafts | 50.4 | 75.9 | 73.4 | -3.3% | 45.5% |
| Other | 129.6 | 148.1 | 122.6 | -17.2% | -5.4% |
| Consumer loans | 51,984.3 | 59,419.4 | 60,186.9 | 1.3% | 15.8% |
| Mortgages | 12,878.1 | 15,488.0 | 15,596.4 | 0.7% | 21.1% |
| Housing<br> leases | 2,132.2 | 2,395.3 | 2,429.7 | 1.4% | 14.0% |
| Mortgages loans | 15,010.3 | 17,883.4 | 18,026.1 | 0.8% | 20.1% |
| Microcredit loans | 292.6 | 267.7 | 267.6 | 0.0% | -8.5% |
| Gross loans | 158,293.9 | 182,345.6 | 184,610.4 | 1.2% | 16.6% |
| Interbank<br> & overnight funds | 4,584.7 | 5,967.7 | 3,920.0 | -34.3% | -14.5% |
| Total gross loans | 162,878.7 | 188,313.4 | 188,530.4 | 0.1% | 15.7% |
In terms of gross loans (excluding interbank and overnight funds), 90.6% are domestic and 9.4% are foreign (reflecting the Multi Financial Group operation).
Over the last twelve months we observed a strong performance in all types of loans.
Commercial loans increased by 16.6% during the last twelve months and 1.3% during the quarter.
Consumer loans growth over the last year and quarter was mainly by personal loans and credit cards. Consumer loans grew by 15.8% annually and increased 1.3% over the quarter. Mortgages loans increased by 20.1% over the year and 0.8% in the last quarter.
The following table shows the loans and receivables 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 24.4%, commercial loans 20.7% and mortgages growing 16.7%.
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|---|---|---|---|---|---|
| Report of 1Q2023 consolidated results<br><br> <br><br><br> <br>Information reported in Ps billions and under IFRS | |||||
| --- | |||||
| Gross loans / Bank ($) | 1Q22 | 4Q22 | 1Q23 | D | |
| --- | --- | --- | --- | --- | --- |
| 1Q23 vs. 4Q22 | 1Q23 vs. 1Q22 | ||||
| Banco de Bogotá | 83,017.5 | 96,078.0 | 97,023.9 | 1.0% | 16.9% |
| Banco de Occidente | 38,124.3 | 44,581.2 | 46,260.2 | 3.8% | 21.3% |
| Banco Popular | 23,509.7 | 25,212.5 | 24,901.0 | -1.2% | 5.9% |
| Banco AV Villas | 13,627.7 | 15,004.8 | 15,026.9 | 0.1% | 10.3% |
| Corficolombiana | 1,849.9 | 2,199.5 | 2,177.3 | -1.0% | 17.7% |
| Grupo Aval Holding | - | 1,508.8 | 1,260.4 | -16.5% | N.A. |
| Eliminations | (1,835.2) | (2,239.2) | (2,039.2) | -8.9% | 11.1% |
| Gross loans | 158,293.9 | 182,345.6 | 184,610.5 | 1.2% | 16.6% |
| Interbank & overnight funds | 4,584.7 | 5,967.7 | 3,920.0 | -34.3% | -14.5% |
| Total gross loans | 162,878.7 | 188,313.4 | 188,530.4 | 0.1% | 15.7% |
| Gross loans / Bank (%) | 1Q22 | 4Q22 | 1Q23 | ||
| Banco de Bogotá | 52.4% | 52.7% | 52.6% | ||
| Banco de Occidente | 24.1% | 24.4% | 25.1% | ||
| Banco Popular | 14.9% | 13.8% | 13.5% | ||
| Banco AV Villas | 8.6% | 8.2% | 8.1% | ||
| Corficolombiana | 1.2% | 1.2% | 1.2% | ||
| Grupo Aval Holding | 0.0% | 0.8% | 0.7% | ||
| Eliminations | -1.2% | -1.2% | -1.1% | ||
| Gross loans | 100% | 99% | 100% |
The 0.7% of Grupo Aval Holding reflects the loan with Esadinco S.A. (Related Party). 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.
The quality of our loan portfolio deteriorated slightly during the quarter driven by the economic slowdown.
Our 30 days PDL to total loans closed in 4.9% for 1Q23, 4.3% for 4Q22 and 4.6% for 1Q22. The ratio of 90 days PDL to total loans was 3.4% for 1Q23, 3.3% for 4Q22 and 3.5% for 1Q22.
Commercial loans 30 days PDL ratio was 4.4% for 1Q23, 4.0% for 4Q22 and 4.5% for 1Q22; 90 days PDL ratio was 3.7%, 3.6% and 4.0%, respectively. Consumer loans 30 days PDL ratio was 5.4% for 1Q23, 4.7% for 4Q22, and 4.5% for 1Q22; 90 days PDL ratio was 3.0%, 2.7% and 2.7%, respectively. Mortgages’ 30 days PDL ratio was 5.5% for 1Q23, 4.9% for 4Q22, and 5.5% for 1Q22; 90 days PDL ratio was 3.1%, 3.0% and 3.3%, respectively.
| Total gross loans | 1Q22 | 4Q22 | 1Q23 | D | |
|---|---|---|---|---|---|
| 1Q23 vs. 4Q22 | 1Q23 vs. 1Q22 | ||||
| ''A'' normal risk | 141,769.7 | 165,978.8 | 167,186.7 | 0.7% | 17.9% |
| ''B'' acceptable risk | 3,965.2 | 3,577.5 | 4,194.9 | 17.3% | 5.8% |
| ''C'' appreciable risk | 4,180.5 | 3,803.1 | 3,919.3 | 3.1% | -6.2% |
| ''D'' significant risk | 4,501.9 | 4,854.9 | 4,869.9 | 0.3% | 8.2% |
| ''E'' unrecoverable | 3,876.7 | 4,131.4 | 4,439.7 | 7.5% | 14.5% |
| Gross loans | 158,293.9 | 182,345.6 | 184,610.4 | 1.2% | 16.6% |
| Interbank and overnight funds | 4,584.7 | 5,967.7 | 3,920.0 | -34.3% | -14.5% |
| Total gross loans | 162,878.7 | 188,313.4 | 188,530.4 | 0.1% | 15.7% |
| CDE loans / gross loans (*) | 7.9% | 7.0% | 7.2% | ||
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| Report of 1Q2023 consolidated results<br><br> <br><br><br> <br>Information reported in Ps billions and under IFRS | |||||
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| Past due loans | 1Q22 | 4Q22 | 1Q23 | D | |
| --- | --- | --- | --- | --- | --- |
| 1Q23 vs. 4Q22 | 1Q23 vs. 1Q22 | ||||
| Performing | 86,882.8 | 100,550.0 | 101,440.5 | 0.9% | 16.8% |
| Between 31 and 90 days past due | 476.5 | 436.3 | 710.3 | 62.8% | 49.1% |
| +90 days past due | 3,647.4 | 3,788.8 | 3,979.1 | 5.0% | 9.1% |
| Commercial loans | 91,006.7 | 104,775.1 | 106,129.9 | 1.3% | 16.6% |
| Performing | 49,657.5 | 56,630.2 | 56,924.8 | 0.5% | 14.6% |
| Between 31 and 90 days past due | 947.2 | 1,213.9 | 1,473.7 | 21.4% | 55.6% |
| +90 days past due | 1,379.6 | 1,575.3 | 1,788.3 | 13.5% | 29.6% |
| Consumer loans | 51,984.3 | 59,419.4 | 60,186.9 | 1.3% | 15.8% |
| Performing | 14,190.7 | 17,011.9 | 17,042.5 | 0.2% | 20.1% |
| Between 31 and 90 days past due | 329.8 | 330.6 | 420.4 | 27.2% | 27.5% |
| +90 days past due | 489.8 | 540.9 | 563.2 | 4.1% | 15.0% |
| Mortgages loans | 15,010.3 | 17,883.4 | 18,026.1 | 0.8% | 20.1% |
| Performing | 209.0 | 230.2 | 229.5 | -0.3% | 9.8% |
| Between 31 and 90 days past due | 10.3 | 8.3 | 8.4 | 0.2% | -18.7% |
| +90 days past due | 73.3 | 29.2 | 29.8 | 2.0% | -59.4% |
| Microcredit loans | 292.6 | 267.7 | 267.6 | 0.0% | -8.5% |
| Gross loans | 158,293.9 | 182,345.6 | 184,610.5 | 1.2% | 16.6% |
| Interbank & overnight funds | 4,584.7 | 5,967.7 | 3,920.0 | -34.3% | -14.5% |
| Total gross loans | 162,878.7 | 188,313.4 | 188,530.4 | 0.1% | 15.7% |
| 30 Days PDL / gross loans (*) | 4.6% | 4.3% | 4.9% | ||
| 90 Days PDL / gross loans (*) | 3.5% | 3.3% | 3.4% | ||
| Loans by stages (%) | 1Q22 | 4Q22 | 1Q23 | ||
| Loans classified as Stage 2 / gross loans | 10.5% | 6.5% | 6.3% | ||
| Loans classified as Stage 3 / gross loans | 6.9% | 6.4% | 6.4% | ||
| Loans classified as Stage 2 and 3 / gross loans | 17.4% | 12.8% | 12.7% | ||
| Allowance for Stage 1 loans / Stage 1 loans | 0.9% | 0.9% | 0.9% | ||
| Allowance for Stage 2 loans / Stage 2 loans | 10.5% | 12.1% | 12.1% | ||
| Allowance for Stage 3 loans / Stage 3 loans | 53.5% | 54.0% | 55.5% | ||
| Allowance for Stage 2 y 3 loans / Stage 2 y 3 loans | 27.5% | 32.9% | 33.9% |
Grupo Aval’s coverage over its 90 days PDL was 1.5x for 1Q23 and 4Q22, 1.6x for 1Q22. Allowance to CDE Loans was 0.7x for 1Q23, 4Q22 and 1Q22, allowance to 30 days PDL was 1.1x in 1Q23, 1.2x for 4Q22 and 1Q22. Impairment loss, net of recoveries of charged off assets to average gross loans was 1.7% for 1Q23, 1.5% for 4Q22 and 1.7% in pro forma 1Q22. Charge- offs to average gross loans was 1.8% for 1Q23 and for 4Q22, and 2.0% in pro forma 1Q22.
| Total gross loans | 1Q22 | 4Q22 | 1Q23 |
|---|---|---|---|
| Allowance for impairment / CDE loans | 0.7 | 0.7 | 0.7 |
| Allowance for impairment / 30 days PDL | 1.2 | 1.2 | 1.1 |
| Allowance for impairment / 90 days PDL | 1.6 | 1.5 | 1.5 |
| Allowance for impairment / gross loans (*) | 5.6% | 5.0% | 5.1% |
| Impairment loss / CDE loans | 0.3 | 0.3 | 0.3 |
| Impairment loss / 30 days PDL | 0.4 | 0.4 | 0.4 |
| Impairment loss / 90 days PDL | 0.6 | 0.6 | 0.6 |
| Impairment loss / average gross loans (*) | 2.1% | 1.9% | 2.0% |
| Impairment loss, net of recoveries of charged-off assets / average gross loans (*) | 1.7% | 1.5% | 1.7% |
| Charge-offs / average gross loans (*) | 2.0% | 1.8% | 1.8% |
| Pro<br>forma ratio | |||
| --- |
(*) 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.
| • | Pro-forma ratios for 1Q22 are based on reported revenues and expenses, associated to each ratio;<br> however, the denominators averages used to calculate these ratios contain pro-forma figures from previous quarters |
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| Report of 1Q2023 consolidated results<br><br> <br><br><br> <br>Information reported in Ps billions and under IFRS | |
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1.2 Investment securities and trading assets
Total investment securities and trading assets increased 10.0% to Ps 45,554.5 billion between March 31^st^, 2023 and March 31^st^, 2022 and increased 0.1% versus December 31^st^, 2022.
Ps 36,211.6 billion of our total portfolio is invested in debt securities, which increased by 8.3% between March 31^st^, 2023 and March 31^st^, 2022 and increased by 0.7% versus December 31^st^, 2022. Ps 7,428.2 billion of our total investment securities is invested in equity securities, which increased by 12.1% between March 31^st^, 2023 and March 31^st^, 2022 and decreased by 1.2% versus December 31^st^, 2022.
| Investment and trading assets | 1Q22 | 4Q22 | 1Q23 | D | |
|---|---|---|---|---|---|
| 1Q23 vs. 4Q22 | 1Q23 vs. 1Q22 | ||||
| Debt securities | 3,247.3 | 3,760.9 | 5,145.6 | 36.8% | 58.5% |
| Equity securities | 5,254.7 | 6,039.1 | 6,525.1 | 8.0% | 24.2% |
| Derivative assets | 1,344.8 | 2,041.4 | 1,914.8 | -6.2% | 42.4% |
| Trading assets | 9,846.7 | 11,841.4 | 13,585.5 | 14.7% | 38.0% |
| Investments in debt securities at FVTPL (non compliant with SPPI test) | - | 1.4 | 1.4 | -0.6% | -0.6% |
| Debt securities at FVOCI | 22,591.1 | 22,461.8 | 21,275.0 | -5.3% | -5.8% |
| Equity securities at FVOCI | 1,373.8 | 1,476.7 | 903.1 | -38.8% | -34.3% |
| Investments in securities at FVOCI | 23,964.9 | 23,938.5 | 22,178.1 | -7.4% | -7.5% |
| Investments in debt securities at AC | 7,585.4 | 9,734.6 | 9,789.6 | 0.6% | 29.1% |
| Investment and trading assets | 41,397.0 | 45,515.9 | 45,554.5 | 0.1% | 10.0% |
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 11.7% for 1Q23, 7.5% for 4Q22 and 3.6% for pro forma 1Q22.
1.3 Cash and Cash Equivalents
As of March 31^st^, 2023 cash and cash equivalents had a balance of Ps 19,327.8 billion showing an increase of 13.5% versus March 31^st^, 2022 and an increase of 17.8% versus December 31^st^, 2022.
The ratio of cash and cash equivalents to customer deposits was 10.8% at March 31^st^, 2023, 9.8% at December 31^st^, 2021, and 10.7% at March 31^st^, 2022.
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| Report of 1Q2023 consolidated results<br><br> <br><br><br> <br>Information reported in Ps billions and under IFRS |
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1.4 Goodwill and Other Intangibles
Goodwill and other intangibles as of March 31^st^, 2023 reached Ps 17,851.1 billion, increasing by 17.1% versus March 31^st^, 2022 and 1.8% versus December 31^st^, 2022.
Goodwill as of March 31^st^, 2023 was Ps 2,232.2 billion, increasing by 0.5% versus March 31^st^, 2022 and decreasing 0.7% versus December 31^st^, 2022.
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^, 2023 reached Ps 15,618.9 billion and grew by 19.9% versus pro forma March 31^st^, 2022 and increased by 2.2% versus December 31^st^, 2022.
2. Liabilities
As of March 31^st^, 2023 Total Funding represented 92.5% of total liabilities and other liabilities represented 7.5%.
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 248,390.9 billion as of March 31^st^, 2023 showing an increase of 15.3% versus March 31^st^, 2022 and 1.2% versus December 31^st^, 2022. Total customer deposits represented 71.8% of total funding as of 1Q23, 70.6% for 4Q22, and 70.9% 1Q22.
Average cost of funds was 8.4% for 1Q23, 7.3% for 4Q22 and 3.2% for pro forma 1Q22.
2.1.1 Customer deposits
| Customer deposits | 1Q22 | 4Q22 | 1Q23 | D | |
|---|---|---|---|---|---|
| 1Q23 vs. 4Q22 | 1Q23 vs. 1Q22 | ||||
| Checking accounts | 19,617.1 | 19,695.4 | 17,917.7 | -9.0% | -8.7% |
| Other deposits | 302.9 | 841.5 | 928.3 | 10.3% | N.A. |
| Non-interest bearing | 19,920.0 | 20,536.9 | 18,846.0 | -8.2% | -5.4% |
| Checking accounts | 8,599.8 | 6,236.6 | 6,041.7 | -3.1% | -29.7% |
| Time deposits | 53,221.1 | 72,273.7 | 85,133.4 | 17.8% | 60.0% |
| Savings deposits | 70,967.2 | 74,293.9 | 68,331.2 | -8.0% | -3.7% |
| Interest bearing | 132,788.1 | 152,804.2 | 159,506.4 | 4.4% | 20.1% |
| Customer deposits | 152,708.1 | 173,341.1 | 178,352.4 | 2.9% | 16.8% |
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| Report of 1Q2023 consolidated results<br><br> <br><br><br> <br>Information reported in Ps billions and under IFRS | |||||
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Of our total customer deposits as of March 31^st^, 2023, checking accounts represented 13.4%, time deposits 47.7%, savings accounts 38.3%, and other deposits 0.5%.
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 banking operation in Colombia.
| Deposits / Bank ($) | 1Q22 | 4Q22 | 1Q23 | D | |
|---|---|---|---|---|---|
| 1Q23 vs. 4Q22 | 1Q23 vs. 1Q22 | ||||
| Banco de Bogotá | 77,045.3 | 88,027.5 | 89,606.3 | 1.8% | 16.3% |
| Banco de Occidente | 37,561.3 | 43,095.9 | 46,703.8 | 8.4% | 24.3% |
| Banco Popular | 23,068.5 | 24,314.5 | 24,904.7 | 2.4% | 8.0% |
| Banco AV Villas | 13,557.0 | 14,844.5 | 13,929.9 | -6.2% | 2.8% |
| Corficolombiana | 5,440.7 | 6,589.6 | 6,719.7 | 2.0% | 23.5% |
| Eliminations | (3,964.7) | (3,530.8) | (3,512.0) | -0.5% | -11.4% |
| Total Grupo Aval | 152,708.1 | 173,341.1 | 178,352.4 | 2.9% | 16.8% |
| Deposits / Bank (%) | 1Q22 | 4Q22 | 1Q23 | ||
| Banco de Bogotá | 50.5% | 50.8% | 50.2% | ||
| Banco de Occidente | 24.6% | 24.9% | 26.2% | ||
| Banco Popular | 15.1% | 14.0% | 14.0% | ||
| Banco AV Villas | 8.9% | 8.6% | 7.8% | ||
| Corficolombiana | 3.6% | 3.8% | 3.8% | ||
| Eliminations | -2.6% | -2.0% | -2.0% | ||
| Total 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^, 2023 borrowings from banks and other totaled Ps 33,886.4 billion, increasing 59.8% versus March 31^st^, 2022 and decreasing 2.3% versus December 31^st^, 2022.
2.1.3 Bonds issued
Total bonds issued as of March 31^st^, 2023 totaled Ps 27,352.4 billion and decreased 10.1% versus March 31^st^, 2022 and 3.6% versus December 31^st^, 2022.
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| Report of 1Q2023 consolidated results<br><br> <br><br><br> <br>Information reported in Ps billions and under IFRS |
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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 March 31^st^, 2023 non-controlling interest was Ps 14,051.3 billion which increased by 5.1% versus March 31^st^, 2022 and decreased by 2.1% versus December 31^st^, 2022. Total non- controlling interest represents 46.5% of total equity as of 1Q23, compared to 46.6% in 4Q22 and 45.2% in 1Q22.
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 | 1Q22 | 4Q22 | 1Q23 | D | |
|---|---|---|---|---|---|
| 1Q23 vs. 4Q22 | 1Q23 vs. 1Q22 | ||||
| Banco de Bogotá | 68.7% | 68.9% | 68.9% | - | 19 |
| 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) | 75.7% | 75.8% | 75.8% | - | 9 |
| Corficolombiana | 40.0% | 40.5% | 40.5% | - | 55 |
(1) Grupo Aval is the direct controlling entity of Porvenir.
4. Attributable Shareholders’ Equity
Attributable shareholders’ equity as of March 31^st^, 2023 was Ps 16,175.7 billion, showing a decrease of 0.3% versus March 31^st^, 2022 and a 1.8% versus December 31^st^, 2022.
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| Report of 1Q2023 consolidated results<br><br> <br><br><br> <br>Information reported in Ps billions and under IFRS |
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Income Statement Analysis
Our net income attributable to the owners of the parent company for 1Q23 was Ps 425.1 billion.
| Consolidated Statement of Income | 1Q22 | 4Q22 | 1Q23 | D | |
|---|---|---|---|---|---|
| 1Q23 vs. 4Q22 | 1Q23 vs. 1Q22 | ||||
| Interest income | 3,759.8 | 6,143.6 | 7,008.3 | 14.1% | 86.4% |
| Interest expense | 1,679.2 | 4,378.4 | 5,459.5 | 24.7% | 225.1% |
| Net interest income | 2,080.6 | 1,765.2 | 1,548.8 | -12.3% | -25.6% |
| Loans and other accounts receivable | 807.3 | 841.7 | 920.5 | 9.4% | 14.0% |
| Other financial assets | 18.9 | (0.4) | (0.3) | -30.6% | -101.5% |
| Recovery of charged-off financial assets | (130.8) | (188.3) | (133.7) | -29.0% | 2.2% |
| Net impairment loss on financial assets | 695.4 | 653.0 | 786.5 | 20.4% | 13.1% |
| Net income from commissions and fees | 710.0 | 749.7 | 842.3 | 12.4% | 18.6% |
| Gross profit from sales of goods and services | 1,020.6 | 918.1 | 1,163.6 | 26.7% | 14.0% |
| Net trading income | (287.3) | 609.0 | (81.3) | -113.3% | -71.7% |
| Net income from other financial instruments mandatory at FVTPL | 73.9 | 68.2 | 93.9 | 37.7% | 27.1% |
| Total other income | 793.3 | (327.9) | 875.9 | N.A | 10.4% |
| Total other expenses | 1,679.5 | 2,101.0 | 2,077.0 | -1.1% | 23.7% |
| Net income before income tax expense | 2,016.2 | 1,028.3 | 1,579.8 | 53.6% | -21.6% |
| Income tax expense | 633.0 | 526.3 | 532.6 | 1.2% | -15.9% |
| Net income for the period of continued operations | 1,383.2 | 502.0 | 1,047.3 | 108.6% | -24.3% |
| Net income for the period of discontinued operations | 1,597.5 | (929.4) | - | -100.0% | -100.0% |
| Net income for the period | 2,980.8 | (427.5) | 1,047.3 | N.A | -64.9% |
| Non-controlling interest | 1,251.1 | (97.1) | 622.2 | N.A | -50.3% |
| Net income attributable to owners of the parent | 1,729.7 | (330.4) | 425.1 | -228.7% | -75.4% |
1. Net InterestIncome
| Net interest income | 1Q22 | 4Q22 | 1Q23 | D | |
|---|---|---|---|---|---|
| 1Q23 vs. 4Q22 | 1Q23 vs. 1Q22 | ||||
| Interest income | |||||
| Commercial | 1,456.9 | 2,927.2 | 3,382.1 | 15.5% | 132.1% |
| Interbank and overnight funds | 68.6 | 222.6 | 375.0 | 68.4% | N.A. |
| Consumer | 1,559.8 | 2,016.5 | 2,178.6 | 8.0% | 39.7% |
| Mortgages and housing leases | 278.0 | 383.8 | 408.4 | 6.4% | 46.9% |
| Microcredit | 16.6 | 16.4 | 17.3 | 5.7% | 4.1% |
| Loan portfolio | 3,379.8 | 5,566.5 | 6,361.4 | 14.3% | 88.2% |
| Interests on investments in debt securities | 380.0 | 577.0 | 646.9 | 12.1% | 70.2% |
| Total interest income | 3,759.8 | 6,143.6 | 7,008.3 | 14.1% | 86.4% |
| Interest expense | |||||
| Checking accounts | 29.9 | 61.5 | 62.5 | 1.5% | 108.9% |
| Time deposits | 544.2 | 1,591.1 | 2,216.4 | 39.3% | N.A. |
| Savings deposits | 407.9 | 1,402.7 | 1,591.8 | 13.5% | 290.2% |
| Total interest expenses on deposits | 982.0 | 3,055.3 | 3,870.6 | 26.7% | 294.1% |
| Interbank borrowings and overnight funds | 76.5 | 308.7 | 395.9 | 28.3% | N.A. |
| Borrowings from banks and others | 124.5 | 357.6 | 487.7 | 36.4% | 291.8% |
| Bonds issued | 466.9 | 549.1 | 562.6 | 2.5% | 20.5% |
| Borrowings from development entities | 29.3 | 107.7 | 142.6 | 32.4% | N.A. |
| Total interest expenses on financial obligations | 697.1 | 1,323.1 | 1,588.9 | 20.1% | 127.9% |
| Total interest expense | 1,679.2 | 4,378.4 | 5,459.5 | 24.7% | 225.1% |
| Net interest income | 2,080.6 | 1,765.2 | 1,548.8 | -12.3% | -25.6% |
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| Report of 1Q2023 consolidated results<br><br> <br><br><br> <br>Information reported in Ps billions and under IFRS | |||||
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Our net interest income decreased by 25.6% to Ps 1,548.8 billion for 1Q23 versus 1Q22 and by 12.3% versus 4Q22. The decrease versus 1Q222 was derived mainly from a 86.4% increase in total interest income offset by a 225.1% increase in total interest expense.
Our Net Interest Margin(*) was 3.7% for 1Q23, 3.5% for 4Q22, and 4.1%(1) in pro forma 1Q22. Net Interest Margin o Loans was 3.6% for 1Q23, 4.1% for 4Q22, and 5.1%(1) for pro forma 1Q22. On the other hand, our Net Investments Margin was 4.2% for 1Q23, 1.0% for 4Q22 and 0.6%(1) for pro forma 1Q22.
2. Impairment loss on financialassets, net
Our impairment loss on financial assets, net increased by 13.1% to Ps 786.5 billion for 1Q23 versus 1Q22 and by 20.4% versus 4Q22.
| Net impairment loss on financial assets | 1Q22 | 4Q22 | 1Q23 | D | |
|---|---|---|---|---|---|
| 1Q23 vs. 4Q22 | 1Q23 vs. 1Q22 | ||||
| Loans and other accounts receivable | 807.3 | 841.7 | 920.5 | 9.4% | 14.0% |
| Other financial assets | 18.9 | (0.4) | (0.3) | -30.6% | -101.5% |
| Recovery of charged-off financial assets | (130.8) | (188.3) | (133.7) | -29.0% | 2.2% |
| Net impairment loss on financial assets | 695.4 | 653.0 | 786.5 | 20.4% | 13.1% |
Our annualized gross cost of risk was 2.0% for 1Q23, 1.9% for 4Q22, and 2.1%(1) for pro forma 1Q22. Net of recoveries of charged-off assets our ratio was 1.7% for 1Q23 and 1Q22, and 1.5% for 4Q22.
(*) 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 2.8% for 1Q23, 3.3% for 4Q22, and 4.4% for proforma 1Q22 .
(1) Pro-forma ratios for 1Q22 are based on reported revenues and expenses, associated to each ratio; however, the denominators averages used to calculate these ratios contain pro-forma figures from previous quarters.
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| Report of 1Q2023 consolidated results<br><br> <br><br><br> <br>Information reported in Ps billions and under IFRS |
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- Non-interest income
| Total non-interest income | 1Q22 | 4Q22 | 1Q23 | D | |
|---|---|---|---|---|---|
| 1Q23 vs. 4Q22 | 1Q23 vs. 1Q22 | ||||
| Income from commissions and fees | |||||
| Banking fees | 564.6 | 663.4 | 664.4 | 0.1% | 17.7% |
| Trust activities | 83.9 | 95.8 | 122.9 | 28.3% | 46.5% |
| Pension and severance fund management | 303.7 | 179.9 | 250.0 | 39.0% | -17.7% |
| Bonded warehouse services | 43.0 | 50.3 | 47.3 | -6.0% | 10.2% |
| Total income from commissions and fees | 995.1 | 989.4 | 1,084.5 | 9.6% | 9.0% |
| Expenses from commissions and fees | 285.0 | 239.8 | 242.2 | 1.0% | -15.0% |
| Net income from commissions and fees | 710.0 | 749.7 | 842.3 | 12.4% | 18.6% |
| Income from sales of goods and services | 2,667.9 | 3,200.7 | 2,927.5 | -8.5% | 9.7% |
| Costs and expenses from sales of goods and services | 1,647.3 | 2,282.6 | 1,763.8 | -22.7% | 7.1% |
| Gross profit from sales of goods and services | 1,020.6 | 918.1 | 1,163.6 | 26.7% | 14.0% |
| Total trading investment income | (18.3) | 201.7 | 591.0 | 193.0% | N.A |
| Total derivatives income | (269.1) | 407.3 | (672.3) | -265.0% | 149.8% |
| Net trading income | (287.3) | 609.0 | (81.3) | -113.3% | -71.7% |
| Net income from other financial instruments mandatory at FVTPL | 73.9 | 68.2 | 93.9 | 37.7% | 27.1% |
| Other income | |||||
| Foreign exchange gains (losses), net | 369.2 | (540.5) | 488.5 | -190.4% | 32.3% |
| Net gain on sale of investments and OCI realization | (2.6) | (112.4) | 27.5 | -124.5% | N.A |
| Gain on the sale of non-current assets held for sale | 3.9 | 2.0 | 1.1 | -46.8% | -72.9% |
| Income from non-consolidated investments | 203.3 | 91.4 | 214.5 | 134.8% | 5.5% |
| Net gains on asset valuations | 0.3 | 28.9 | 0.0 | -100.0% | -96.8% |
| Other income from operations | 219.2 | 202.7 | 144.2 | -28.9% | -34.2% |
| Total other income | 793.3 | (327.9) | 875.9 | N.A | 10.4% |
| Total non-interest income | 2,310.5 | 2,017.2 | 2,894.5 | 43.5% | 25.3% |
^(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 1Q23 totaled Ps 842.3 billion and increased by 18.6% versus 1Q22 and by 12.4% versus 4Q22. Income from commissions and fees increased by 9.0% to Ps 1,084.5 billion for 1Q23 versus 1Q22 and increased by 9.6% versus 4Q22.
3.2 Gross profit from sales of goods and services
Gross profit from sales of goods and services (non-financial sector) increased by 14.0% to Ps 1,163.6 billion for 1Q23 versus 1Q22 and 26.7% versus 4Q22, the yearly increase was due to a strong contribution from the infrastructure sector and an increase in the energy and gas sectors and infrastructure sector explain the quarterly increase.
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| Report of 1Q2023 consolidated results<br><br> <br><br><br> <br>Information reported in Ps billions and under IFRS |
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3.3 Net trading income and other income
| Other income | 1Q22 | 4Q22 | 1Q23 | D | |
|---|---|---|---|---|---|
| 1Q23 vs. 4Q22 | 1Q23 vs. 1Q22 | ||||
| Total derivatives income | (269.1) | 407.3 | (672.3) | -265.0% | -149.8% |
| Foreign exchange gains (losses), net | 369.2 | (540.5) | 488.5 | 190.4% | 32.3% |
| Derivatives and foreign exchange gains (losses), net (1) | 100.1 | (133.2) | (183.7) | -38.0% | -283.5% |
| Net gains on asset valuations | 0.3 | 28.9 | 0.0 | -100.0% | -96.8% |
| Net income from other financial instruments mandatory at FVTPL | 73.9 | 68.2 | 93.9 | 37.7% | 27.1% |
| Net gain on sale of investments and OCI realization | (2.6) | (112.4) | 27.5 | 124.5% | N.A |
| Gain on the sale of non-current assets held for sale | 3.9 | 2.0 | 1.1 | -46.8% | -72.9% |
| Income from non-consolidated investments | 203.3 | 91.4 | 214.5 | 134.8% | 5.5% |
| Other income from operations | 219.2 | 202.7 | 144.2 | -28.9% | -34.2% |
| Total other income from operations | 598.1 | 147.6 | 297.6 | 101.5% | -50.3% |
Total other income for 1Q23 totaled Ps 297.6 billion, the 50.3% yearly decrease was due to derivative and foreign exchange losses, net. The quarterly increase was 101.5% due to the 134.8% growth in other income from non- consolidated investments and dividends.
4. Other expenses
Total other expenses for 1Q23 totaled Ps 2,077.0 billion and increased by 23.7% versus 1Q22, taxes contributed with 1/3 of the yearly increased and decreased by 1.1% versus 4Q22. Our efficiency ratio measured as total other expenses to total income was 46.7% in 1Q23, 55.5% in 4Q22 and 38.2% in 1Q22. The ratio of annualized total other expenses as a percentage of average total assets was 2.8% for 1Q23 and 2.9% for 4Q22, and 2.6% for pro forma 1Q22^(1)^.
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 622.2 billion, showing a 50.3% decrease versus 1Q22 and a 741.0% increase versus 4Q22. In addition, the ratio of non-controlling interest to income before non-controlling interest was 59.4% in 1Q23, 22.7% in 4Q22 and 31.0% in 1Q22.
(1) Pro-forma ratios for 1Q22 are based on reported revenues and expenses, associated to each ratio; however, the denominators averages used to calculate these ratios contain pro-forma figures from previous quarters.
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| Report of 1Q2023 results<br><br> <br><br><br> <br>Information reported in Ps billions and under IFRS |
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RISK MANAGEMENT
During the first quarter of 2023, there were no material changes in the degree of exposure to the relevant risks disclosed in the report as of December 2022, nor have new relevant risks been identified that merit disclosure as of March 31st , 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 Jurídica «Registro Nacional de Valores y Emisores – RNVE.
QUANTITATIVE AND QUALITATIVE ANALYSIS OF MARKET RISK
During the first quarter of 2023, there were no material qualitative and quantitative changes in market risk in comparison with the information reported in the report as of December 2022, that merit disclosure as of March 31^st^ , 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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| Report of 1Q2023 consolidated results<br><br> <br><br><br> <br>Information reported in Ps billions and under Colombian IFRS |
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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 first 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.
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, 2023 amounted to Ps 20,743.5, increasing 12.2% or Ps 2,256.5 trillion compared to assets as of March 31, 2022 and 3.5% or Ps 465.9 compared to assets as of December 31, 2022.
The annual variation is mainly explained by the increase of Ps 191.0 in the balance of investments in associates and joint ventures as a result of (i) the recognition of the share of profit of equity accounted investees (Equity method) for Ps 1,234.2, (ii) the decrease in the value of our investments related to the dividends declared by our subsidiaries for Ps 1,032.2 at the end of March 31, 2023 and (iii) a decrease of Ps 57.9 in the equity method surplus, recognized in the line of other interests in equity. Additionally, an increase of Ps 2,052.8 was recorded in the balance of accounts receivable from related parties, explained by (i) the credit operation disbursed to related parties in December 2022 and which as of March 31, 2023 amounted to Ps 1,462.1 and (ii) an increase of Ps 585.9 in dividends receivable from our subsidiaries. Dividends receivable are driven by the cash dividend decreed by Banco de Bogotá in favor of its shareholders, given that in 2022 dividends receivable in shares were accounted in April.
On a quarterly basis, the variation is mainly explained by the recognition of the share of profit of equity (Equity method) of Ps 412.5 and (iii) a recovery of Ps 325.4 in the surplus by the equity method, explained mostly by a recovery of other comprehensive income (OCI) of fixed income investments at fair value through OCI (FVOCI) of our subsidiaries. The portion denominated in dollars of the credit operation with related parties registered a FX adjustment effect of Ps (44.3), in line with the behavior of the exchange rate (Tasa Representativa del Mercado - TRM) in the quarter. After the general shareholders' meetings of our subsidiaries, there was a reduction of Ps 1,032.2 in the value of investments in associates and joint ventures and an increase of Ps 933.3 in dividends receivable, recorded in accounts receivable with related parties.
Liabilities
Total liabilities as of March 31, 2023 amounted to Ps 4,050.9, increasing Ps 2,259.2 from the liabilities as of March 31, 2022 and Ps 976.2 with respect to the liabilities as of December 31, 2022.
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| Report of 1Q2023 consolidated results<br><br> <br><br><br> <br>Information reported in Ps billions and under Colombian IFRS |
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Below, we present a summary of our financial statements at the separate level by the end of the first 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.
The annual variation is mainly explained by (i) the increase of Ps 1,243.7 in the balance of financial obligations at amortized cost, mainly explained by the credit of US$270 million that GAL granted us in December 2022 to fund a portion of the credit extended to related parties (at the end of March 31, 2023, the credit with GAL amounted to Ps 1,260.4) and (ii) the increase of Ps 1,026.6 in dividends payable as a result of the dividend declared by Grupo Aval on March 30, 2023.
Regarding the quarterly variation, this is mainly explained by (i) an increase of Ps 1,024.2 in dividends payable and (ii) a FX adjustment effect of the credit with GAL for Ps (44.3). The financial indebtedness of Grupo Aval did not present material changes compared to what was reported as of December 31, 2022.
Equity
As of March 31, 2023, shareholders' equity was Ps 16,692.6, stable compared to that reported on March 31, 2022 and decreasing 1.9% or Ps 269.7 from the equity reported as of December 31, 2022. This movement reflects mainly the movement at the level of profits, dividends and surplus by equity method. The annual shareholder´s meeting held on March 30, 2023 decided to appropriate profits for the year 2022 for Ps 1,515.5 and decree cash dividends at the rate of Ps 3.60 per share per month, payable between April 2023 and March 2024, equivalent to Ps 1,025.7. In addition, the most relevant movements within equity when compared to the balance as of March 31, 2022 are (i) profits for Ps 1,255.6, (ii) dividends declared in shares in March and paid in cash in May on 2021 earnings for Ps 119.4, (iii) a reduction of Ps 57.9 in the surplus from the equity method and (iv) the effect on retained earnings of the tax reform (Decree 2617 of 2022) for Ps (36.3). On the other hand, the most relevant movements in the quarter are (i) profits for Ps 415.9 and (ii) the recovery of Ps 325.4 in the surplus from the 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 first quarter of 2023 we presented a net profit from continuing operations of Ps 415.9, decreasing Ps 214.9 compared to the same period in 2022. For the first quarter of 2022 we recorded profits from discontinued operations of Ps 1,100.7. Net earnings per share from continuing operations decreased from Ps 28.3 pesos in the first quarter of 2022 to Ps 17.5 pesos in the first quarter of 2023.
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| Report of 1Q2023 consolidated results<br><br> <br><br><br> <br>Information reported in Ps billions and under Colombian IFRS |
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The decrease in profits from continuing operations is explained by a lower equity method income of Ps 218.2. This is mostly explained by the reduction in profits contributed by our banking subsidiaries, which continue to experience pressure on their intermediation margins as a result of the rapid increase in interest rates from the Central Bank (Banco de la República) throughout 2022. On the other hand, a better environment in the local and international capital markets has been reflected in a recovery of the profitability of the investment portfolios of our subsidiaries.
Net income from continuing operations other than equity method ended the quarter at Ps 3.4, improving Ps 3.3 compared to the same period in 2022. Positive variations presented during the period include (i) higher income from ordinary activities for Ps 44.2, related to an increase of Ps 33.7 in financial returns from the credit operation with related parties, an increase of Ps 8.3 or 11.7% in fee income and an increase of Ps 2.3 in interest income and (ii) a decrease of Ps 14.0 in net expenses. The net effect between the operation with related parties and its corresponding funding with GAL contributes to an increase of Ps 12.8 in revenues compared to the same quarter of last year.
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| Report of 1Q2023 consolidated results<br><br> <br><br><br> <br>Information reported in Ps billions and under IFRS |
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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 1,648.7 billion (Ps 509.9 billion of bank debt and Ps 1,138.8 billion of bonds denominated in Colombian pesos) as of March 31st 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 March 31st 2023, the total amount outstanding (including interests payable) of such bonds was USD 1.0 billion, or Ps 4,644.9 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 479.9 billion of total liquid assets, a total gross indebtedness of Ps 6,293.6 billion and a net indebtedness of Ps 5,813.7 billion as of March 31st 2023. In addition to liquid assets, has Ps 1,454.4 billion in loans with related parties and Grupo Aval Ltd. has Ps 2,427.4 billion in investments in AT1 instruments.
| Total liquid assets as of March 31, 2023 | |
|---|---|
| Cash and cash equivalents | 335.9 |
| Fixed income investments | 144.0 |
| Total liquid assets | 479.9 |
As of March 31st 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 1.27x. Finally, we present an evolution of our key ratios on a combined basis:
| Debt service coverage and leverage ratios | 1Q22 | 4Q22 | 1Q23 | D | |
|---|---|---|---|---|---|
| 1Q23 vs. 4Q22 | 1Q23 vs. 1Q22 | ||||
| Double leverage (1) | 1.22x | 1.27x | 1.27x | 0.00 | 0.05 |
| Net debt / Core earnings (2)(3) | 4.59x | 9.03x | 6.21x | -2.82 | 1.61 |
| Net debt / Cash dividends (2)(3) | 6.21x | 16.26x | 14.73x | -1.53 | 8.52 |
| Core Earnings / Interest Expense (2) | 3.09x | 1.51x | 2.06x | 0.55 | -1.03 |
(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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| Report of 1Q2023 consolidated results<br><br> <br><br><br> <br>Information reported in Ps billions and under IFRS |
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GrupoAval Acciones y Valores S.A.
Consolidated Financial Statements Under IFRS
Financial Statements Under IFRS
Informationin Ps. Billions
| Consolidated Statement of Financial Position | 1Q22 | 4Q22 | 1Q23 | D | |
|---|---|---|---|---|---|
| 1Q23 vs. 4Q22 | 1Q23 vs. 1Q22 | ||||
| Cash and cash equivalents | 16,407.1 | 17,032.9 | 19,327.8 | 13.5% | 17.8% |
| Investment and trading assets | |||||
| Debt securities | 3,247.3 | 3,760.9 | 5,145.6 | 36.8% | 58.5% |
| Equity securities | 5,254.7 | 6,039.1 | 6,525.1 | 8.0% | 24.2% |
| Derivative assets | 1,344.8 | 2,041.4 | 1,914.8 | -6.2% | 42.4% |
| Trading assets | 9,846.7 | 11,841.4 | 13,585.5 | 14.7% | 38.0% |
| Investments in debt securities at FVTPL (non compliant with SPPI test) | - | 1.4 | 1.4 | -0.6% | N.A |
| Investments in securities at FVOCI | 23,964.9 | 23,938.5 | 22,178.1 | -7.4% | -7.5% |
| Investments in debt securities at AC | 7,585.4 | 9,734.6 | 9,789.6 | 0.6% | 29.1% |
| Investment securities | 31,550.3 | 33,674.5 | 31,969.1 | -5.1% | 1.3% |
| Hedging derivatives assets | 53.8 | 20.9 | 35.1 | 68.3% | -34.7% |
| Gross loans | |||||
| Commercial loans | 95,591.4 | 110,742.8 | 110,049.8 | -0.6% | 15.1% |
| Commercial loans | 91,006.7 | 104,775.1 | 106,129.9 | 1.3% | 16.6% |
| Interbank & overnight funds | 4,584.7 | 5,967.7 | 3,920.0 | -34.3% | -14.5% |
| Consumer loans | 51,984.3 | 59,419.4 | 60,186.9 | 1.3% | 15.8% |
| Mortgages loans | 15,010.3 | 17,883.4 | 18,026.1 | 0.8% | 20.1% |
| Microcredit loans | 292.6 | 267.7 | 267.6 | 0.0% | -8.5% |
| Total gross loans | 162,878.7 | 188,313.4 | 188,530.4 | 0.1% | 15.7% |
| Loss allowance | (8,824.2) | (9,197.5) | (9,427.5) | 2.5% | 6.8% |
| Total loans, net | 154,054.5 | 179,115.8 | 179,102.9 | 0.0% | 16.3% |
| Other accounts receivable, net | 19,587.4 | 23,380.6 | 24,384.5 | 4.3% | 24.5% |
| Non-current assets held for sale | 147.2 | 92.8 | 100.1 | 7.9% | -32.0% |
| Investments in associates and joint ventures | 4,356.9 | 1,423.3 | 1,191.4 | -16.3% | -72.7% |
| Own-use property, plant and equipment for own-use and given in operating lease, net | 4,593.0 | 4,730.2 | 4,695.6 | -0.7% | 2.2% |
| Right-of-use assets | 1,362.0 | 1,329.6 | 1,382.7 | 4.0% | 1.5% |
| Investment properties | 894.5 | 963.0 | 956.5 | -0.7% | 6.9% |
| Biological assets | 153.8 | 212.6 | 213.1 | 0.2% | 38.5% |
| Tangible assets | 7,003.4 | 7,235.4 | 7,247.8 | 0.2% | 3.5% |
| Goodwill | 2,220.5 | 2,248.2 | 2,232.2 | -0.7% | 0.5% |
| Concession arrangement rights | 11,338.9 | 13,242.7 | 13,536.2 | 2.2% | 19.4% |
| Other intangible assets | 1,687.2 | 2,040.2 | 2,082.7 | 2.1% | 23.4% |
| Intangible assets | 15,246.5 | 17,531.1 | 17,851.1 | 1.8% | 17.1% |
| Current | 983.7 | 1,782.7 | 1,950.1 | 9.4% | 98.2% |
| Deferred | 1,406.4 | 1,851.2 | 1,525.4 | -17.6% | 8.5% |
| Income tax assets | 2,390.1 | 3,633.9 | 3,475.5 | -4.4% | 45.4% |
| Other assets | 480.1 | 608.6 | 607.4 | -0.2% | 26.5% |
| Total assets | 261,124.1 | 295,591.2 | 298,878.2 | 1.1% | 14.5% |
| Trading liabilities | 1,360.4 | 1,757.6 | 1,517.6 | -13.7% | 11.6% |
| Hedging derivatives liabilities | 52.6 | 3.6 | 5.6 | 55.7% | -89.4% |
| Customer deposits | 152,708.1 | 173,341.1 | 178,352.4 | 2.9% | 16.8% |
| Checking accounts | 28,216.9 | 25,932.1 | 23,959.4 | -7.6% | -15.1% |
| Time deposits | 53,221.1 | 72,273.7 | 85,133.4 | 17.8% | 60.0% |
| Savings deposits | 70,967.2 | 74,293.9 | 68,331.2 | -8.0% | -3.7% |
| Other deposits | 302.9 | 841.5 | 928.3 | 10.3% | N.A. |
| Financial obligations | 62,778.9 | 72,116.8 | 70,038.5 | -2.9% | 11.6% |
| Interbank borrowings and overnight funds | 11,156.8 | 9,087.9 | 8,799.8 | -3.2% | -21.1% |
| Borrowings from banks and others | 17,937.9 | 30,309.4 | 29,346.9 | -3.2% | 63.6% |
| Bonds issued | 30,414.2 | 28,362.2 | 27,352.4 | -3.6% | -10.1% |
| Borrowings from development entities | 3,270.0 | 4,357.3 | 4,539.5 | 4.2% | 38.8% |
| Total financial liabilities at amortized cost | 215,487.1 | 245,457.9 | 248,390.9 | 1.2% | 15.3% |
| Legal related | 252.0 | 229.2 | 228.0 | -0.5% | -9.5% |
| Other provisions | 844.4 | 998.0 | 914.0 | -8.4% | 8.2% |
| Provisions | 1,096.4 | 1,227.2 | 1,142.0 | -6.9% | 4.2% |
| Current | 245.6 | 228.8 | 319.8 | 39.8% | 30.2% |
| Deferred | 4,186.6 | 5,062.7 | 5,244.3 | 3.6% | 25.3% |
| Income tax liabilities | 4,432.2 | 5,291.5 | 5,564.2 | 5.2% | 25.5% |
| Employee benefits | 950.6 | 890.0 | 886.9 | -0.4% | -6.7% |
| Other liabilities | 8,144.3 | 10,141.8 | 11,144.0 | 9.9% | 36.8% |
| Total liabilities | 231,523.5 | 264,769.6 | 268,651.1 | 1.5% | 16.0% |
| Equity attributable to owners of the parent | 16,230.3 | 16,467.0 | 16,175.7 | -1.8% | -0.3% |
| Non-controlling interest | 13,370.3 | 14,354.7 | 14,051.3 | -2.1% | 5.1% |
| Total equity | 29,600.6 | 30,821.7 | 30,227.0 | -1.9% | 2.1% |
| Total liabilities and equity | 261,124.1 | 295,591.2 | 298,878.2 | 1.1% | 14.5% |
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| Report of 1Q2023 consolidated results<br><br> <br><br><br> <br>Information reported in Ps billions and under IFRS | |||||
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GrupoAval Acciones y Valores S.A.
Consolidated Financial Statements Under IFRS
Financial Statements Under IFRS
Informationin Ps. Billions
| Consolidated Statement of Income | 1Q22 | 4Q22 | 1Q23 | D | |
|---|---|---|---|---|---|
| 1Q23 vs. 4Q22 | 1Q23 vs. 1Q22 | ||||
| Interest income | |||||
| Loan portfolio | 3,379.8 | 5,566.5 | 6,361.4 | 14.3% | 88.2% |
| Interests on investments in debt securities | 380.0 | 577.0 | 646.9 | 12.1% | 70.2% |
| Total interest income | 3,759.8 | 6,143.6 | 7,008.3 | 14.1% | 86.4% |
| Interest expense | |||||
| Checking accounts | 29.9 | 61.5 | 62.5 | 1.5% | 108.9% |
| Time deposits | 544.2 | 1,591.1 | 2,216.4 | 39.3% | 307.3% |
| Savings deposits | 407.9 | 1,402.7 | 1,591.8 | 13.5% | 290.2% |
| Total interest expenses on deposits | 982.0 | 3,055.3 | 3,870.6 | 26.7% | 294.1% |
| Interbank borrowings and overnight funds | 76.5 | 308.7 | 395.9 | 28.3% | N.A. |
| Borrowings from banks and others | 124.5 | 357.6 | 487.7 | 36.4% | 291.8% |
| Bonds issued | 466.9 | 549.1 | 562.6 | 2.5% | 20.5% |
| Borrowings from development entities | 29.3 | 107.7 | 142.6 | 32.4% | 386.2% |
| Total interest expenses on financial obligations | 697.1 | 1,323.1 | 1,588.9 | 20.1% | 127.9% |
| Total interest expense | 1,679.2 | 4,378.4 | 5,459.5 | 24.7% | 225.1% |
| Net interest income | 2,080.6 | 1,765.2 | 1,548.8 | -12.3% | -25.6% |
| Impairment losses (recoveries) on financial assets | |||||
| Loans and other accounts receivable | 807.3 | 841.7 | 920.5 | 9.4% | 14.0% |
| Other financial assets | 18.9 | (0.4) | (0.3) | -30.6% | -101.5% |
| Recovery of charged-off financial assets | (130.8) | (188.3) | (133.7) | -29.0% | 2.2% |
| Net impairment loss on financial assets | 695.4 | 653.0 | 786.5 | 20.4% | 13.1% |
| Net interest income, after impairment losses | 1,385.2 | 1,112.2 | 762.3 | -31.5% | -45.0% |
| Income from commissions and fees | |||||
| Banking<br> fees^(1)^ | 564.6 | 663.4 | 664.4 | 0.1% | 17.7% |
| Trust activities | 83.9 | 95.8 | 122.9 | 28.3% | 46.5% |
| Pension and severance fund management | 303.7 | 179.9 | 250.0 | 39.0% | -17.7% |
| Bonded warehouse services | 43.0 | 50.3 | 47.3 | -6.0% | 10.2% |
| Total income from commissions and fees | 995.1 | 989.4 | 1,084.5 | 9.6% | 9.0% |
| Expenses from commissions and fees | 285.0 | 239.8 | 242.2 | 1.0% | -15.0% |
| Net income from commissions and fees | 710.0 | 749.7 | 842.3 | 12.4% | 18.6% |
| Income from sales of goods and services | 2,667.9 | 3,200.7 | 2,927.5 | -8.5% | 9.7% |
| Costs and expenses from sales of goods and services | 1,647.3 | 2,282.6 | 1,763.8 | -22.7% | 7.1% |
| Gross profit from sales of goods and services | 1,020.6 | 918.1 | 1,163.6 | 26.7% | 14.0% |
| Net trading income | (287.3) | 609.0 | (81.3) | -113.3% | -71.7% |
| Net income from other financial instruments mandatory at FVTPL | 73.9 | 68.2 | 93.9 | 37.7% | 27.1% |
| Other income | |||||
| Foreign exchange gains (losses), net | 369.2 | (540.5) | 488.5 | -190.4% | 32.3% |
| Net gain on sale of investments and OCI realization | (2.6) | (112.4) | 27.5 | -124.5% | N.A |
| Gain on the sale of non-current assets held for sale | 3.9 | 2.0 | 1.1 | -46.8% | -72.9% |
| Income<br> from non-consolidated investments^(2)^ | 203.3 | 91.4 | 214.5 | 134.8% | 5.5% |
| Net gains on asset valuations | 0.3 | 28.9 | 0.0 | -100.0% | -96.8% |
| Other income from operations | 219.2 | 202.7 | 144.2 | -28.9% | -34.2% |
| Total other income | 793.3 | (327.9) | 875.9 | N.A | 10.4% |
| Other expenses | |||||
| Loss on the sale of non-current assets held for sale | 0.3 | 0.3 | 0.2 | -42.2% | -43.2% |
| Personnel expenses | 680.0 | 753.9 | 773.4 | 2.6% | 13.7% |
| General and administrative expenses | 797.9 | 1,090.7 | 1,087.2 | -0.3% | 36.3% |
| Depreciation and amortization | 155.5 | 167.4 | 166.6 | -0.5% | 7.1% |
| Impairment loss on other assets | 10.5 | 1.0 | 0.4 | -63.0% | -96.4% |
| Other operating expenses | 35.2 | 87.7 | 49.2 | -43.9% | 40.0% |
| Total other expenses | 1,679.5 | 2,101.0 | 2,077.0 | -1.1% | 23.7% |
| Net income before income tax expense | 2,016.2 | 1,028.3 | 1,579.8 | 53.6% | -21.6% |
| Income tax expense | 633.0 | 526.3 | 532.6 | 1.2% | -15.9% |
| Net income for the period of continued operations | 1,383.2 | 502.0 | 1,047.3 | 108.6% | -24.3% |
| Net income for the period of discontinued operations | 1,597.5 | (929.4) | - | -100.0% | -100.0% |
| Net income for the period | 2,980.8 | (427.5) | 1,047.3 | N.A | -64.9% |
| Net income for the period attibutable to: | |||||
| Non-controlling interest | 1,251.1 | (97.1) | 622.2 | N.A | -50.3% |
| Net income attributable to owners of the parent | 1,729.7 | (330.4) | 425.1 | N.A | -75.4% |
^(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.
| 24 |
|---|
| Report of 1Q2023 consolidated results<br><br> <br><br><br> <br>Information reported in Ps billions and under Colombian IFRS |
| --- |
GRUPOAVAL ACCIONES Y VALORES S.A.
SeparateFinancial Statements
FinancialStatements Under Colombian IFRS
Informationin Ps. Billions
| Separate Statement of Financial Position | 1Q22 | 4Q22 | 1Q23 | D | |
|---|---|---|---|---|---|
| 1Q23 vs. 4Q22 | 1Q23 vs. 1Q22 | ||||
| Current assets | |||||
| Cash and cash equivalents | 151.7 | 67.4 | 166.1 | 146.2% | 9.4% |
| Trading securities | 0.1 | 0.8 | 0.2 | -74.6% | 56.5% |
| Accounts receivable from related parties | 438.2 | 96.1 | 1,029.9 | N.A. | 135.0% |
| Taxes paid in advance | 0.0 | 7.6 | 6.9 | -9.3% | N.A |
| Other accounts receivable | 0.2 | 0.2 | 0.0 | -91.3% | -91.4% |
| Other non-financial assets | 0.0 | 0.1 | 0.1 | 90.4% | 182.9% |
| Total current assets | 590.2 | 172.1 | 1,203.1 | N.A. | 103.8% |
| Non-current Assets | |||||
| Investments in subsidiaries and associates | 17,891.6 | 18,361.9 | 18,082.6 | -1.5% | 1.1% |
| Accounts receivable from related parties | 0.0 | 1,498.8 | 1,454.4 | -3.0% | N.A |
| Property and equipment, net | 5.1 | 4.1 | 3.2 | -20.6% | -35.8% |
| Deferred tax assets | 0.1 | 0.1 | 0.1 | -2.4% | 4.2% |
| Total non-current Assets | 17,896.8 | 19,864.9 | 19,540.4 | -1.6% | 9.2% |
| Total assets | 18,487.0 | 20,037.0 | 20,743.5 | 3.5% | 12.2% |
| Liabilities and shareholders' equity | |||||
| Current liabilities | |||||
| Borrowings at amortized cost | 7.5 | 20.3 | 21.0 | 3.8% | 179.1% |
| Outstanding bonds at amortized cost | 9.6 | 14.1 | 14.3 | 1.3% | 48.3% |
| Accounts payable | 104.2 | 106.1 | 1,129.6 | N.A. | N.A. |
| Employee benefits | 2.2 | 2.5 | 2.3 | -6.6% | 4.0% |
| Tax liabilities | 17.1 | 11.9 | 8.6 | -27.5% | -49.4% |
| Other non-financial liabilities | 1.2 | 1.2 | 1.2 | 0.0% | 0.0% |
| Total current liabilities | 141.9 | 156.1 | 1,177.1 | N.A. | N.A. |
| Long-term liabilities | |||||
| Borrowings at amortized cost | 525.3 | 1,794.1 | 1,749.3 | -2.5% | N.A. |
| Outstanding bonds | 1,124.5 | 1,124.5 | 1,124.5 | 0.0% | 0.0% |
| Total long-term liabilities | 1,649.8 | 2,918.6 | 2,873.8 | -1.5% | 74.2% |
| Total liabilities | 1,791.7 | 3,074.7 | 4,050.9 | 31.8% | 126.1% |
| Shareholders' equity | |||||
| Subscribed and paid capital | 22.3 | 23.7 | 23.7 | 0.0% | 6.6% |
| Additional paid-in capital | 8,612.9 | 9,695.2 | 9,695.2 | 0.0% | 12.6% |
| Retained earnings | 7,182.6 | 5,939.4 | 7,469.6 | 25.8% | 4.0% |
| Earnings from first-time adoption | 0.0 | 0.0 | . | N.A | N.A |
| Net income | 1,731.5 | 2,541.2 | 415.9 | -83.6% | -76.0% |
| Other equity accounts | -854.0 | -1,237.3 | -911.9 | -26.3% | 6.8% |
| Total shareholders' equity | 16,695.3 | 16,962.3 | 16,692.6 | -1.6% | 0.0% |
| Total liabilities and shareholders' equity | 18,487.0 | 20,037.0 | 20,743.5 | 3.5% | 12.2% |
GRUPOAVAL ACCIONES Y VALORES S.A.
SeparateFinancial Statements
FinancialStatements Under Colombian IFRS
Informationin Ps. Billions1Q23
| Separate Statement of Financial Position | 1Q22 | 4Q22 | 1Q23 | D | |
|---|---|---|---|---|---|
| 1Q23 vs. 4Q22 | 1Q23 vs. 1Q22 | ||||
| Operating revenue | |||||
| Equity method income, net | 630.7 | 219.0 | 412.5 | 88.4% | -34.60% |
| Other revenue from ordinary activities | 72.4 | 86.9 | 116.6 | 34.1% | 61.12% |
| Total operating revenue | 703.1 | 305.9 | 529.1 | 73.0% | -24.7% |
| Expenses, net | |||||
| Administrative expenses | 32.5 | 23.3 | 18.7 | -19.7% | -42.51% |
| Other expenses | 0.0 | 3.1 | -0.1 | -103.2% | N.A |
| Losses from exchange differences | 0.0 | 0.0 | -0.1 | N.A. | N.A. |
| Operating income | 670.5 | 279.5 | 510.6 | 82.7% | -23.8% |
| Financial expenses | 34.0 | 64.2 | 81.5 | 27.0% | 139.53% |
| Earnings before taxes | 636.5 | 215.3 | 429.1 | 99.3% | -32.6% |
| Income tax expense | 5.7 | 9.5 | 13.2 | 38.6% | 129.98% |
| Net income from continuing operations | 630.8 | 205.8 | 415.9 | 102.1% | -34.1% |
| 102.1% | -34.06% | ||||
| Discontinued operations | |||||
| Equity method income from discontinued operations | 1,100.7 | -504.1 | 0.0 | -100.0% | -100.00% |
| Income from discontinued operations | 1,100.7 | -504.1 | 0.0 | -100.0% | -100.00% |
| Net income | 1,731.5 | -298.3 | 415.9 | N.A | -76.0% |
| 25 | |||||
| --- | |||||
| Report of 1Q2023 consolidated results | |||||
| --- |
DEFINITIONS
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
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.
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.
Gross loans excludes interbank and overnight funds.
Interest Earning Assets are calculated as the sum of average gross loans, average interbanks and average investments.
Net Interest Income is the difference between Total Interest Income and Total Interest Expense.
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.
Non-controlling interest 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.
| 26 |
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| Report of 1Q2023 consolidated results |
| --- |
Investor Relations Contact
Nicolás Noreña
Financial Controller Manager
Tel: +571 743 32 22 x 23400
E-mail: [email protected]
Simón Franky
Strategic Planning and Investor Relations Analyst
Tel601 743 32 22 x 23351
Email sfranky@grupoaval com
Silvana Palacio
Investor Relations Analyst
Tel601 743 32 22 x 2337
Email mpalacio@grupoaval com
| 27 |
|---|
EXHIBIT1
CONSOLIDATEDFINANCIAL STATEMENTS
Condensed Consolidated Statement of Financial Position
(Amounts expressed in millions of Colombian pesos)
| Notes | March 31, 2023 | December 31, 2022 | |||||
|---|---|---|---|---|---|---|---|
| Assets | |||||||
| Cash and cash equivalents | Ps. | 19,327,847 | Ps. | 17,032,857 | |||
| Trading assets | 13,585,464 | 11,841,407 | |||||
| Investment securities | 31,969,074 | 33,674,477 | |||||
| Hedging derivative assets | 4 | 35,108 | 20,854 | ||||
| Loans, net | 4 | 179,102,900 | 179,115,847 | ||||
| Other accounts receivable, net | 4 | 24,384,493 | 23,380,573 | ||||
| Non-current assets held for sale | 100,133 | 92,830 | |||||
| Investments in associates and joint ventures | 6 | 1,191,374 | 1,423,343 | ||||
| Tangible assets | 7 | 7,247,770 | 7,235,441 | ||||
| Concessions arrangements rights | 8 | 13,536,212 | 13,242,706 | ||||
| Goodwill | 9 | 2,232,238 | 2,248,217 | ||||
| Other intangibles | 2,082,686 | 2,040,158 | |||||
| Income tax assets | 3,475,495 | 3,633,876 | |||||
| Other assets | 607,366 | 608,650 | |||||
| Total assets | Ps. | 298,878,160 | Ps. | 295,591,236 | |||
| Liabilities and equity | |||||||
| Liabilities | |||||||
| Trading liabilities | 4 | Ps. | 1,517,550 | Ps. | 1,757,606 | ||
| Hedging derivative liabilities | 4 | 5,557 | 3,568 | ||||
| Customer deposits | 4 | 178,352,401 | 173,341,149 | ||||
| Financial obligations | 4 | 70,038,493 | 72,116,775 | ||||
| Provisions | 11 | 1,142,008 | 1,227,171 | ||||
| Income tax liabilities | 5,564,170 | 5,291,487 | |||||
| Employee benefits | 12 | 886,891 | 890,019 | ||||
| Other liabilities | 13 | 11,144,041 | 10,141,802 | ||||
| Total liabilities | Ps. | 268,651,111 | Ps. | 264,769,577 | |||
| Equity | |||||||
| Owners of the parent: | |||||||
| Subscribed and paid-in capital | Ps. | 23,744 | Ps. | 23,744 | |||
| Additional paid-in capital | 9,571,374 | 9,571,374 | |||||
| Retained earnings | 7,428,429 | 8,018,417 | |||||
| Other comprehensive income | (847,847 | ) | (1,146,565 | ) | |||
| Equity attributable to owners of the parent | 16,175,700 | 16,466,970 | |||||
| Non-controlling interest | 14,051,349 | 14,354,689 | |||||
| Total equity | 30,227,049 | 30,821,659 | |||||
| Total liabilities and equity | Ps. | 298,878,160 | Ps. | 295,591,236 |
The accompanying notes are an integral part of the consolidatedfinancial 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 March 31, | |||||||
|---|---|---|---|---|---|---|---|
| Notes | 2023 | 2022 ^(1)^ | |||||
| Continuing operations | |||||||
| Interest income | 4 | Ps. | 7,008,324 | Ps. | 3,759,791 | ||
| Interest expense | 4 | (5,459,500 | ) | (1,679,180 | ) | ||
| Net interest income | 1,548,824 | 2,080,611 | |||||
| Net impairment loss on financial assets | (786,489 | ) | (695,422 | ) | |||
| Net interest income, after impairment losses | 762,335 | 1,385,189 | |||||
| Income from commissions and fees | 1,084,530 | 995,075 | |||||
| Expenses from commissions and fees | (242,227 | ) | (285,037 | ) | |||
| Net income from commissions and fees | 16 | 842,303 | 710,038 | ||||
| Income from sales of goods and services | 2,927,482 | 2,667,889 | |||||
| Costs and expenses of sales goods and services | (1,763,843 | ) | (1,647,296 | ) | |||
| Net income from sales of goods and services | 16 | 1,163,639 | 1,020,593 | ||||
| Net trading loss | 17 | (81,280 | ) | (287,345 | ) | ||
| Net income from other financial instruments mandatorily at fair value through profit or loss | 93,949 | 73,908 | |||||
| Other income | 18 | 875,870 | 793,284 | ||||
| Other expenses | 18 | (2,077,011 | ) | (1,679,474 | ) | ||
| Net income before tax expense | 1,579,805 | 2,016,193 | |||||
| Income tax expense | 10 | (532,551 | ) | (632,950 | ) | ||
| Net income from continuing operations | Ps. | 1,047,254 | Ps. | 1,383,243 | |||
| Discontinued operations | |||||||
| Net income from discontinued operations | 1.1 | Ps. | - | Ps. | 1,597,512 | ||
| Net income | Ps. | 1,047,254 | Ps. | 2,980,755 | |||
| Net income attributable to owners of the parent | |||||||
| Net income for the period from continuing operations | 425,090 | 631,631 | |||||
| Net income for the period from discontinued operations | 1.1 | - | 1,098,073 | ||||
| Owners of the parent | Ps. | 425,090 | Ps. | 1,729,704 | |||
| Net income attributable to non-controlling interests | |||||||
| Net income for the period from continuing operations | 622,164 | 751,612 | |||||
| Net income for the period from discontinued operations | 1.1 | - | 499,439 | ||||
| Non-controlling interests | Ps. | 622,164 | Ps. | 1,251,051 | |||
| Net Income | Ps. | 1,047,254 | Ps. | 2,980,755 | |||
| Net income per share basic and diluted (in Colombian pesos) | 14 | Ps. | 17.90 | Ps. | 77.63 |
^(1)^ See note 1.1 “Discontinued operations of BAC Holding”.
The accompanying notes are an integral part of the consolidatedfinancial 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 March 31, | |||||||
|---|---|---|---|---|---|---|---|
| Notes | 2023 | 2022 | |||||
| Net income | Ps. | 1,047,254 | Ps. | 2,980,755 | |||
| 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 | (123,149 | ) | (7,505,723 | ) | ||
| Hedging derivative instrument | 5 | 0 | 4,052,710 | ||||
| Hedging non-derivative instrument | 5 | 120,238 | 3,157,086 | ||||
| Cash flow hedges | (3,114 | ) | (5,702 | ) | |||
| Foreign currency translation differences from unhedged foreign operations | (65,076 | ) | 1,032,865 | ||||
| Investments in associates and joint ventures | 594 | (3,531 | ) | ||||
| Unrealized (losses) gains on securities at FVOCI | 735,161 | (1,132,971 | ) | ||||
| Income tax | (244,939 | ) | (2,377,055 | ) | |||
| Total, items that may be reclassified to profit or loss | Ps. | 419,715 | Ps. | (2,782,321 | ) | ||
| Items that will not be reclassified to profit or loss | |||||||
| (Losses) unrealized on equity securities at FVOCI | (53,709 | ) | (22,063 | ) | |||
| Actuarial (losses) gains from defined benefit pension plans | (1 | ) | 33,627 | ||||
| Income tax | (22 | ) | (10,958 | ) | |||
| Total, items that will not be reclassified to profit or loss | Ps. | (53,732 | ) | Ps. | 606 | ||
| Total other comprehensive income, net of taxes | 365,983 | (2,781,715 | ) | ||||
| Total comprehensive income | Ps. | 1,413,237 | Ps. | 199,040 | |||
| Total comprehensive income for the periods attributable to: | |||||||
| Owners of the Group | 723,808 | (140,083 | ) | ||||
| Non-controlling interest | 689,429 | 339,123 | |||||
| Ps. | 1,413,237 | Ps. | 199,040 |
The accompanyingnotes 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 three-month periods ended March 31, 2023 and 2022
(Amounts expressed in millions of Colombian pesos)
| Subscribed<br> and paid-in capital | Additional<br> paid – in capital | Appropriated<br> retained earnings | Other<br> comprehensive income (OCI) | Equity<br> attributable to owners of the parent | Non-controlling<br> interest (NCI) | Total<br> equity | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance at December 31, 2020 | 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 | — | — | — | — | — | 141 | 141 | ||||||||||||
| Dividends declared in cash | — | — | — | — | — | (405,501 | ) | (405,501 | ) | ||||||||||
| Spin Off^(1)^ | — | — | (6,638,961 | ) | — | (6,638,961 | ) | (3,019,613 | ) | (9,658,574 | ) | ||||||||
| Effect of realization of equity instruments^(1)^ | — | — | (5,318 | ) | — | (5,318 | ) | (2,428 | ) | (7,746 | ) | ||||||||
| Other comprehensive income | — | — | — | (1,869,787 | ) | (1,869,787 | ) | (911,928 | ) | (2,781,715 | ) | ||||||||
| Withholding Tax over dividends | — | — | 1,006 | — | 1,006 | 566 | 1,572 | ||||||||||||
| Net income | — | — | 1,729,704 | — | 1,729,704 | 1,251,051 | 2,980,755 | ||||||||||||
| Balance at March 31, 2022 | Ps. | 22,281 | Ps. | 8,490,799 | Ps. | 8,469,822 | Ps. | (752,605 | ) | Ps. | 16,230,297 | Ps. | 13,370,282 | Ps. | 29,600,579 | ||||
| Subscribed<br> and paid-in capital | Additional<br> paid – in capital | Appropriated<br> retained earnings | Other<br> comprehensive income (OCI) | Equity<br> attributable to owners of the parent | Non-controlling<br> interest (NCI) | Total<br> equity | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Balance at 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 | ||||
| Dividends declared in cash | — | — | (1,025,718 | ) | — | (1,025,718 | ) | (1,014,794 | ) | (2,040,512 | ) | ||||||||
| Other comprehensive income | — | — | — | 298,718 | 298,718 | 67,265 | 365,983 | ||||||||||||
| Withholding Tax over dividends | — | — | 10,640 | — | 10,640 | 22,025 | 32,665 | ||||||||||||
| Net income | — | — | 425,090 | — | 425,090 | 622,164 | 1,047,254 | ||||||||||||
| Balance at March 31, 2023 | Ps. | 23,744 | Ps. | 9,571,374 | Ps. | 7,428,429 | Ps. | (847,847 | ) | Ps. | 16,175,700 | Ps. | 14,051,349 | Ps. | 30,227,049 |
^^
^(1)^ See note 1.1 “Discontinued operations of BAC Holding”.
The accompanying notes are an integral part of the consolidatedfinancial statements.
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Condensed Consolidated Statement of Cash Flows for the nine-month periods ended March 31, 2023and 2021
(Amounts expressed in millions of Colombian pesos)
| Notes | March 31, 2023 | March 31, 2022 ^(1)^ | |||||
|---|---|---|---|---|---|---|---|
| Cash flows from operating activities: | |||||||
| Net income before income tax | Ps. | 1,579,805 | Ps. | 2,016,193 | |||
| Reconciliation of net income before taxes and net cash provided by operating activities: | |||||||
| Depreciation and amortization | 16-18 | 279,584 | 263,210 | ||||
| Impairment losses of loans and receivables, net | 4-16 | 935,469 | 813,270 | ||||
| Net income in concession agreements | (1,260,858 | ) | (1,061,120 | ) | |||
| Net interest income | (1,548,824 | ) | (2,080,611 | ) | |||
| Sales of non-current assets held for sale, net | 18 | (865 | ) | (3,572 | ) | ||
| Gain on sales of tangible assets | (5,025 | ) | (9,015 | ) | |||
| Foreign exchange losses | 18 | (488,545 | ) | (369,186 | ) | ||
| Share of profit of equity accounted investees, net of tax | 18 | (94,738 | ) | (96,409 | ) | ||
| Dividends caused | 18 | (119,767 | ) | (106,882 | ) | ||
| Fair value adjustments on: | |||||||
| Derivatives | 17 | 672,258 | 269,072 | ||||
| Non-current assets held for sale | (142 | ) | 40 | ||||
| Investment property | (47 | ) | (801 | ) | |||
| Biological assets | (3,156 | ) | (1,624 | ) | |||
| Changes in operating assets and liabilities: | |||||||
| Derivatives | (804,470 | ) | (121,005 | ) | |||
| Trading assets | (1,883,400 | ) | 1,122,997 | ||||
| Accounts receivable | (219,249 | ) | 10,221 | ||||
| Other assets | (25,610 | ) | (8,239 | ) | |||
| Other liabilities and provisions | (654,362 | ) | (1,498,646 | ) | |||
| Employee benefit | (2,237 | ) | 9,721 | ||||
| Loan portfolio | (1,598,740 | ) | (9,035,473 | ) | |||
| Customer deposits | 5,553,614 | 6,443,976 | |||||
| Interbank borrowings and overnight funds | (270,635 | ) | 841,853 | ||||
| Borrowings from development entities | 83,547 | (981 | ) | ||||
| Borrowings from banks | (216,821 | ) | 588,455 | ||||
| Interest received | 6,139,939 | 3,355,371 | |||||
| Interest paid | (4,755,112 | ) | (1,571,307 | ) | |||
| Lease interest | (45,541 | ) | (37,243 | ) | |||
| Income tax payments | (523,796 | ) | (377,595 | ) | |||
| Net cash provided (used) by operating activities | Ps. | 722,276 | Ps. | (645,330 | ) | ||
| Cash flows from investing activities: | |||||||
| Purchases of amortized cost financial assets | Ps. | (967,134 | ) | Ps. | (814,206 | ) | |
| Redemptions of amortized cost financial assets | 1,058,158 | 719,073 | |||||
| Purchases of FVOCI | (5,144,385 | ) | (3,723,789 | ) | |||
| Proceeds from sales of FVOCI | 7,578,151 | 3,930,005 | |||||
| Acquisition of associates investment and join ventures | — | (2,667 | ) | ||||
| Purchases tangible assets | (89,791 | ) | (57,761 | ) | |||
| Proceeds from sales of property, plant and equipment | 45,349 | 38,807 | |||||
| Proceeds from sales of non-current assets held for sale | 5,194 | 17,522 | |||||
| Additions of concession arrangement rights | 130,757 | 113,586 | |||||
| Additions of other intangible assets | (115,887 | ) | (86,008 | ) | |||
| Dividends received | 111,611 | 96,650 | |||||
| (Decrease) to deconsolidation of subsidiaries | — | (17,570,390 | ) | ||||
| Net cash provided (used) in by investing activities | Ps. | 2,612,023 | Ps. | (17,339,178 | ) | ||
| Cash flows from financing activities: | |||||||
| Dividends paid to shareholders | Ps. | (1,475 | ) | Ps. | (299,942 | ) | |
| Dividends paid to non-controlling interest | (67,965 | ) | (158,848 | ) | |||
| Issuance of debt securities | 2,571,859 | 521,716 | |||||
| Payment of outstanding debt securities | (3,057,617 | ) | (345,083 | ) | |||
| Leases | (100,444 | ) | (91,878 | ) | |||
| Issuance of shares | — | 141 | |||||
| Net cash used by financing activities | Ps. | (655,642 | ) | Ps. | (373,894 | ) | |
| Effect of foreign currency changes on cash and equivalents | (383,667 | ) | (483,748 | ) | |||
| Decrease in cash and cash equivalents in joint operations | — | (1,393,602 | ) | ||||
| Increase (decrease) in cash and cash equivalents | 2,294,990 | (20,235,752 | ) | ||||
| 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. | 19,327,847 | Ps. | 16,407,077 |
^(1)^ See note 1.1 “Discontinued operations of BAC Holding”.
The accompanying notes are an integral part of the consolidatedfinancial statements.
EXHIBIT2
SEPARATEFINANCIAL STATEMENTS
GRUPO AVAL ACCIONES Y VALORES S.A.
Statement of financial position
For the period ended as of march 31st 2023 and december 31st 2022
(Stated in millions of Colombian pesos)
| March 31st | Decembre 31st | |||||
|---|---|---|---|---|---|---|
| Assets | 2023 | 2022 | ||||
| Current assets | ||||||
| Cash and cash equivalents | Ps. | 166,066 | Ps. | 67,439 | ||
| Trading securities | 194 | 764 | ||||
| Accounts receivable from related parties | 1,029,853 | 96,081 | ||||
| Taxes paid in advance | 6,872 | 7,577 | ||||
| Other accounts receivable | 14 | 161 | ||||
| Other non-financial assets | 99 | 52 | ||||
| Total current assets | 1,203,098 | 172,074 | ||||
| Non-current Assets | ||||||
| Investments in subsidiaries and associates | Ps. | 18,082,615 | Ps. | 18,361,916 | ||
| Accounts receivable from related parties | 1,454,442 | 1,498,754 | ||||
| Property and equipment, net | 3,241 | 4,083 | ||||
| Deferred tax assets | 124 | 127 | ||||
| Total non-current Assets | 19,540,422 | 19,864,880 | ||||
| Total assets | Ps. | 20,743,520 | Ps. | 20,036,954 | ||
| Liabilities and shareholders' equity | ||||||
| Current liabilities | ||||||
| Borrowings at amortized cost | Ps. | 21,025 | Ps. | 20,255 | ||
| Outstanding bonds at amortized cost | 14,270 | 14,093 | ||||
| Accounts payable | 1,129,603 | 106,101 | ||||
| Employee benefits | 2,323 | 2,486 | ||||
| Tax liabilities | 8,639 | 11,920 | ||||
| Other non-financial liabilities | 1,214 | 1,214 | ||||
| Total current liabilities | 1,177,074 | 156,069 | ||||
| Long-term liabilities | ||||||
| Borrowings at amortized cost | Ps. | 1,749,301 | Ps. | 1,794,089 | ||
| Outstanding bonds | 1,124,520 | 1,124,520 | ||||
| Total long-term liabilities | 2,873,821 | 2,918,609 | ||||
| Total liabilities | Ps. | 4,050,895 | Ps. | 3,074,678 | ||
| Shareholders' equity | ||||||
| Subscribed and paid capital | Ps. | 23,743 | Ps. | 23,743 | ||
| Additional paid-in capital | 9,695,243 | 9,695,243 | ||||
| Retained earnings | 7,469,581 | 5,939,430 | ||||
| Net income | 415,940 | 2,541,179 | ||||
| Other equity accounts | (911,882 | ) | (1,237,319 | ) | ||
| Total shareholders' equity | Ps. | 16,692,625 | Ps. | 16,962,276 | ||
| Total liabilities and shareholders' equity | Ps. | 20,743,520 | 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 accumulated period | ||||||
|---|---|---|---|---|---|---|
| March 31st | March 31st | |||||
| 2023 | 2022 | |||||
| Operating revenue | ||||||
| Equity method income, net | Ps. | 412,496 | Ps. | 630,683 | ||
| Other revenue from ordinary activities | 116,610 | 72,373 | ||||
| Total operating revenue | Ps. | 529,106 | Ps. | 703,056 | ||
| Expenses, net | ||||||
| Administrative expenses | Ps. | 18,713 | Ps. | 32,549 | ||
| Other expenses | (99 | ) | 14 | |||
| Revenue from exchange differences | (130 | ) | (42 | ) | ||
| Ps. | 18,484 | Ps. | 32,521 | |||
| Operating income | Ps. | 510,622 | Ps. | 670,535 | ||
| Financial expenses | 81,532 | 34,039 | ||||
| Earnings before taxes | Ps. | 429,090 | Ps. | 636,496 | ||
| Income tax expense | 13,150 | 5,718 | ||||
| Net income from continuing operations | Ps. | 415,940 | Ps. | 630,778 | ||
| Discontinued operations | ||||||
| Equity method income from discontinued operations | 0 | 1,100,730 | ||||
| Income from discontinued operations | Ps. | 0 | Ps. | 1,100,730 | ||
| Net income | Ps. | 415,940 | Ps. | 1,731,508 | ||
| Net income per share from continuing operations | Ps. | 17.52 | Ps. | 28.31 | ||
| Net income per share from discontinued operations | Ps. | 0.00 | Ps. | 49.40 |
GRUPO AVAL ACCIONES Y VALORES S.A.
Statement of Other Comprehensive Income
(Stated in millions of Colombian pesos)
IFRS
| For the accumulated period | |||||
|---|---|---|---|---|---|
| March 31st | March 31st | ||||
| 2023 | 2022 | ||||
| Net income | Ps. | 415,940 | Ps. | 1,731,508 | |
| Other comprehensive income (OCI), net of taxes | |||||
| Participation in other comprehensive income | |||||
| reported using the equity method | 325,437 | (1,867,591 | ) | ||
| Comprehensive income, net | Ps. | 741,377 | Ps. | (136,083 | ) |
GRUPO AVAL ACCIONES Y VALORES S.A.
Individual statement of cash flow
For the period ended as of march 31st 2023 and 2022
(Stated in millions of Colombian pesos)
| March 31st | March 31st | |||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | |||||
| Cash flow from operating activity: | ||||||
| Net Income | Ps. | 415,940 | Ps. | 1,731,508 | ||
| Adjustments to reconcile net profit with net cash <br> used in operating activities | ||||||
| Income tax expense | Ps. | 13,150 | Ps. | 5,718 | ||
| Property and equipment depreciation and amortization | 398 | 426 | ||||
| Impairment of receivables | (121 | ) | - | |||
| Equity method income | (412,496 | ) | (630,683 | ) | ||
| Equity method income from discontinued operations | - | (1,100,730 | ) | |||
| Changes in operating assets and liabilities: | ||||||
| Decrease (Increase) in trading securities | 570 | (77 | ) | |||
| Increase in interest receivables | (382 | ) | - | |||
| Decrease in other assets and liabilities, net: prepaid taxes, prepaid expenses; taxes, accounts payable,<br> employee liabilities, estimated liabilities and provisions. | (16,530 | ) | (12,357 | ) | ||
| Increase in interests payable | 1,319 | 2,887 | ||||
| Interest payment on lease agreements (IFRS 16) | (132 | ) | (63 | ) | ||
| Dividends received by subsidiaries | 98,655 | 283,955 | ||||
| Income tax paid | - | (3,354 | ) | |||
| Net cash used in operating activities | Ps. | 100,371 | Ps. | 277,230 | ||
| Cash flow from investing activities: | ||||||
| Acquisition of property and equipment | - | (22 | ) | |||
| Net cash used in investing activities | Ps. | 0 | Ps. | (22 | ) | |
| Cash flow from financing activities: | ||||||
| Dividends paid | (1,475 | ) | (299,942 | ) | ||
| Payment of liabilities arising from lease agreements | (269 | ) | (317 | ) | ||
| Net cash from financing activities | Ps. | (1,744 | ) | Ps. | (300,259 | ) |
| Change in cash and cash equivalents | 98,627 | (23,051 | ) | |||
| 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 | Ps. | 166,066 | Ps. | 151,733 | ||
| Additional information: | ||||||
| Payment of Interest | Ps. | 80,343 | Ps. | 31,173 |
GRUPO AVAL ACCIONES Y VALORES S.A.
Statement of shareholders' equity
For the period ended as of March 31st 2023
(Stated in million of Colombian pesos)
| Retained<br> earnings (losses) | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Paid-in<br> Capital | Legal<br> reserve | Occasional<br> reserve | Retained<br> earnings <br> (losses) | Operations<br> with shareholders | Net Income | Other<br> equity accounts | Shareholders'<br> equity | ||||||||||||||||
| Balance as of December 31st. 2021 | 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<br> shares outstanding as of december 31st 2021. These dividends will be paid at the rate of 1 share for each 13.74233 common or preferential<br> shares as of december 31st, 2021. | (1,203,175 | ) | (1,203,175 | ) | |||||||||||||||||||
| Issuance of shares | 1,203,175 | 1,203,175 | |||||||||||||||||||||
| Application of the equity method | (1,149,373 | ) | (1,149,373 | ) | |||||||||||||||||||
| Application of the equity method (Spin-off) | (6,644,277 | ) | (718,218 | ) | (7,362,495 | ) | |||||||||||||||||
| Witholding tax on dividends | 258 | 258 | |||||||||||||||||||||
| Net Income | 1,731,508 | 1,731,508 | |||||||||||||||||||||
| Balance as of March 31st 2022 | 22,281 | Ps. | 8,612,936 | Ps. | 11,140 | Ps. | 14,021,093 | Ps. | (205,356 | ) | (6,644,277 | ) | Ps. | 1,731,508 | Ps. | (853,991 | ) | Ps. | 16,695,334 | ||||
| Balance as of December 31st 2022 | 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<br> 2023 to March 2024 including those two months, over 23.743.475.754 outstanding shares as of the date of this<br> meeting. | (1,025,718 | ) | (1,025,718 | ) | |||||||||||||||||||
| Application of the equity method | 325,437 | 325,437 | |||||||||||||||||||||
| Witholding tax on dividends | 14,690 | 14,690 | |||||||||||||||||||||
| Net Income | 415,940 | 415,940 | |||||||||||||||||||||
| Balance as of March 31st 2023 | 23,743 | Ps. | 9,695,243 | Ps. | 11,872 | Ps. | 7,220,883 | Ps. | 236,826 | 0 | Ps. | 415,940 | Ps. | (911,882 | ) | Ps. | 16,692,625 |
All values are in US Dollars.
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 16, 2023
| GRUPO AVAL ACCIONES Y VALORES S.A. | ||
|---|---|---|
| By: | /s/ Jorge Adrián Rincón Plata | |
| Name: | Jorge Adrián Rincón Plata | |
| Title: | Chief Legal Counsel |