Grupo Aval Acciones y Valores SA (NYSE:AVAL) Q1 2024 Earnings Conference Call May 15, 2024 10:00 AM ET Company Participants Maria Lorena Gutierrez Botero – Chief Executive Officer Diego Fernando Solano Saravia – Chief Financial Officer Conference Call Participants Nicolas Riva – Bank of America Julián Ausique – Davivienda Corredores Operator Welcome to Grupo Aval's First Quarter 2024 Consolidated Results Conference Call. My name is Regina and I will be your operator for today's call. Grupo Aval Acciones y V ...

1Q24 Consolidated Earnings Results IFRS ADL no es empresa vigilada por la Superintendencia Financiera de Colombia 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. Grup ...

Financial Reporting - Grupo Aval filed its Form 20-F for the year ended December 31, 2023, with the SEC[3] - Shareholders can access the audited financial statements under IFRS for free by requesting a copy from the investor relations team[3] - The filing is part of Grupo Aval's compliance with the Securities Exchange Act of 1934[5]

Financial Performance - Porvenir's total assets under management increased by 6.6% to Ps 203,813.7 billion as of December 31, 2023, compared to Ps 191,192.5 billion in 2022[433]. - The company achieved a net income of 53.2% in the pension fund management sector for the year ended December 31, 2023[466]. - Banco de Bogotá's net income for the period was Ps 1,025 million, a decrease of 54.5% compared to Ps 2,252 million in the previous year[573]. - Banco de Occidente reported a net income of Ps 431 million, down 14.3% from Ps 503 million in the previous year[574]. - Banco Popular reported a net income of (Ps 347 million) for the period, a decrease from Ps 73 million in the previous year[576]. - Banco AV Villas' net income for the period was (Ps 117 million), down from Ps 112 million in the same period last year[578]. - Corficolombiana's consolidated net income for the period was Ps 886 million, compared to Ps 1,714 million in the previous year[580]. Client and Market Growth - The number of clients for mandatory pension funds rose by 2.0% to 11,565.9 thousand in December 2023, up from 11,341.2 thousand in December 2022[437]. - The total number of clients increased by 3.0% to 17,132.6 thousand in December 2023, compared to 16,635.1 thousand in December 2022[437]. - The market share of Grupo Aval in gross loans reached 24.6% as of December 31, 2023, making it the second largest in Colombia[446]. - As of December 31, 2023, the company held a market share of 24.5% in total deposits in Colombia, ranking second behind Bancolombia at 26.2%[453]. - The company reported a total of 1,001 branches and 2,860 ATMs, representing a market share of 19.5% and 17.9% respectively in Colombia[463]. Asset and Liability Management - The total assets of the company reached Ps. 298,489.0 billion in 2023, representing a 9.7% growth compared to 2022[490]. - Total liabilities and equity reached Ps. 298,489.0 billion, with a 7.6% increase in interest expense[492]. - Total interest-bearing liabilities increased to Ps. 229,078.1 billion, with an interest expense of Ps. 22,632.4 billion, reflecting a 9.9% increase compared to the previous year[492]. - The average interest rate for total interest-bearing deposits was 10.1% in 2023, compared to 5.5% in 2022 and 2.1% in 2021[510]. - The total average balance of deposits reached Ps 178,844.3 billion in 2023, with an interest expense of Ps 16,214.2 billion[512]. Interest and Yield Analysis - The average yield on gross loans for Grupo Aval was 14.9% as of December 31, 2023, compared to 15.5% in 2022[449]. - The average yield on interest-earning assets for 2023 was 9.6%, compared to 7.1% in 2022[490]. - The total average yield for debt securities at fair value through OCI is 4.5% as of December 31, 2023[500]. - The total average yield for debt securities at amortized cost is 10.0% as of December 31, 2023[501]. - The interest spread on loans was 3.7% in 2023, down from 4.7% in 2022[497]. Risk Management and Compliance - The company is focusing on strengthening its cybersecurity teams due to the high demand for specialized personnel in the field[474]. - The company has implemented additional controls for digital channels, including fraud intelligence and facial biometrics, to mitigate operational risks[480]. - The company continues to monitor cybersecurity risks and incidents quarterly to assess their impact on operations[476]. - The Superintendency of Finance supervises financial institutions to maintain stability and protect users of financial services, with the authority to impose sanctions for violations[525]. - Grupo Aval, as a financial holding, is subject to the supervision of the Superintendency of Finance and must comply with capital adequacy regulations[530]. Capital Adequacy and Solvency - As of December 31, 2023, Grupo Aval's technical capital complied with the adequate capital required by regulation for each of the reported interim quarterly filings[550]. - The minimum CET1 capital requirement is set at 4.5%, with a minimum Tier I capital requirement of 6% and a capital conservation buffer of 1.5%[567]. - The total solvency ratio must be a minimum of 9%, calculated based on risk-weighted assets[566]. - The solvency ratio has decreased to 17.07% from 22.47% year-over-year[583]. - All of Grupo Aval's individually regulated operations have complied with the minimum regulatory capital requirements as of December 31, 2023[572].

Grupo Aval Acciones y Valores S.A. (NYSE:AVAL) Q4 2023 Results Conference Call March 5, 2024 9:00 AM ET Company Participants Luis Carlos Sarmiento Gutierrez - Chief Executive Officer Diego Fernando Solano Saravia - Chief Financial Officer Conference Call Participants Julián Ausique - Corredores Daniel Mora - Credicorp Capital Alonso Arambaru - BTG Operator Welcome to Grupo Aval's 4Q 2023 Consolidated Results Conference call. My name is Mandeep and I will be your operator for today's call. Grupo Aval Accione ...

Financial Data and Key Metrics Changes - Attributable net income for Q3 2023 was COP 65 billion, or COP 2.7 per share, bringing year-to-date attributable net income to COP 656 billion, or COP 27.6 per share [15] - Return on average assets and return on average equity for the quarter were 0.4% and 1.6%, respectively, with year-to-date annualized return on average assets and return on average equity at 0.8% and 5.3% [15] - Quarterly NIM fell 63 basis points to 2.8%, driven by a negative NIM on investments due to poor capital markets performance [34] Business Line Data and Key Metrics Changes - Gross loans increased 1.1% during the quarter and 6.5% year-on-year, with peso-denominated loans increasing 1% during the quarter and 8.9% over the year [28] - Cost of risk increased to 2.53% in Q3, in line with expectations due to higher delinquency in unsecured consumer loans [22] - Net fee income increased 15.1% year-on-year but decreased 2.8% quarter-on-quarter, with banking fees increasing 1.1% in line with loan growth [36] Market Data and Key Metrics Changes - The Colombian peso appreciated approximately 18% during the year, dropping under COP 4,000 per dollar [13] - Inflation fell less than expected in Q3, reaching 11% in the previous 12 months, with expectations for annual inflation during 2023 revised upwards [10] - Employment data showed a decrease in the unemployment rate to 9.3% in September, but an increase to 11% is anticipated by year-end 2023 [12] Company Strategy and Development Direction - The company views 2024 as a transition year, aiming to return to profitability targets by 2025, with expectations of higher NIM and lower cost of risk [24] - The company plans to continue building its digital payments ecosystem, with digital clients surpassing 5 million and digital transactions exceeding 65% of total transactions [25] - The company is in the process of building a pipeline of projects and investments, both domestically and internationally, to enhance its non-financial sector investments [25] Management's Comments on Operating Environment and Future Outlook - Management anticipates GDP growth of approximately 1% in 2023 and 1.5% to 1.75% for 2024, with inflation expected to moderate to 6% in 2024 [10][11] - The management expressed optimism regarding the changes in leadership at three of the four Colombian banks, believing it will refresh corporate strategies [17] - The management highlighted the importance of cost control initiatives, which enabled a 4.1% reduction in operating expenses compared to the previous quarter [22] Other Important Information - The company experienced an unanticipated downturn in financial markets, negatively impacting investment portfolios and NIM on investments [19] - The company expects loan growth to remain soft across products and segments in line with central bank policies and a softer economic outlook [29] - The company’s guidance for 2023 includes a consolidated NIM in the 3.3% area and a cost of risk net of recoveries in the 2.1% area [41] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded with management expressing hope for a recovery in 2024 [43][46]

Grupo Aval Acciones y Valores S.A. (NYSE:AVAL) Q2 2023 Results Conference Call August 17, 2023 10:00 AM ET Company Participants Luis Carlos Sarmiento Gutierrez - Chief Executive Officer Diego Fernando Solano Saravia - Chief Financial Officer Conference Call Participants Nicolas Riva - Bank of America Yuri Fernandes - JPMorgan Operator Welcome to Grupo Aval's Second Quarter 2023 Consolidated Results Conference Call. My name is Regina, and I will be your operator for today's call. Grupo Aval Acciones y Valore ...

Grupo Aval Acciones y Valores S.A. (NYSE:AVAL) Q1 2023 Earnings Conference Call May 18, 2023 10:00 AM ET Company Participants Luis Carlos Sarmiento Gutierrez - CEO Diego Fernando Solano Saravia - CFO Conference Call Participants Juan Recalde - Scotiabank Daniel Mora - Credicorp Capital Operator Welcome to Grupo Aval's First Quarter 2023 Consolidated Results Conference Call. My name is Sherly and I will be your operator for today's call. Grupo Aval Acciones y Valores S.A., Grupo Aval is an issuer of securiti ...

Table of Contents Title of each class Name of each exchange on which registered American Depositary Shares, each representing 20 preferred shares, par value Ps 1.00 per preferred share New York Stock Exchange Preferred Shares, par value Ps 1.00 per preferred share New York Stock Exchange* UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 O ...

Financial Reporting - Grupo Aval filed its Form 20-F for the year ended December 31, 2022, with the SEC on April 14, 2023[3] - The Form 20-F includes audited financial statements presented under IFRS, available for shareholders upon request[3] - The company’s investor relations team can provide hard copies of the audited financial statements free of charge[3]