Core Viewpoint - The article expresses a bullish outlook on Colombia as a whole but indicates skepticism towards the oil industry and specifically the stock of EC [1]. Group 1: Analyst Background - Ian Bezek, a former hedge fund analyst, has spent a decade conducting on-the-ground research in Latin America, focusing on markets such as Mexico, Colombia, and Chile [1]. - The analyst specializes in identifying high-quality compounders and growth stocks at reasonable prices in both the US and other developed markets [1]. Group 2: Investment Group Features - The investing group, Ian's Insider Corner, offers features such as a Weekend Digest that includes new investment ideas, updates on current holdings, and macroeconomic analysis [1]. - Members have access to trade alerts, an active chat room, and direct communication with the analyst [1].

Table of Contents | | 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 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | | for the fiscal year ended December 31, 2024 | | | OR | | ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | | For ...

Grupo Aval Acciones y Valores S.A. (NYSE:AVAL) Q4 2024 Earnings Conference Call February 19, 2025 9:00 AM ET Company Participants Maria Lorena Gutierrez Botero - Chief Executive Officer Paula Duran - Corporate Vice President of Sustainability and Strategic Projects Camilo Perez Alvarez - Banco de Bogota's Chief Economist Diego Fernando Solano Saravia - Chief Financial Officer Conference Call Participants Brian Flores - Citigroup Nicolas Riva - BofA Securities Carlos Gomez-Lopez - HSBC Daniel Mora - CrediCor ...

4Q24 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. Grupo Aval is also subject to the inspection and supervision of the Superintendency of Finance as holding company of the Aval financial conglomer ...

Financial Data and Key Metrics Changes - Return on average equity was 9.7%, comparable to the third quarter of 2022 [9] - Net income to shareholders was 415 billion pesos, marking the best result for the third quarter in three years [46][66] - Total net income for the quarter was 416 billion pesos or 17.5 pesos per share [66] Business Line Data and Key Metrics Changes - Combined gross loans grew 0.7%, reaching a 25.2% market share by September [46] - Commercial loans expanded 5% year-on-year and 0.1% over the quarter, while consumer loans grew 0.9% during the quarter [53] - Consumer loan disbursements grew 18% over the quarter and 28% year-on-year, reaching 19 trillion pesos [50] Market Data and Key Metrics Changes - The Colombian economy registered annual growth of 1.9% year-to-date to August, supported by household consumption and a resilient export sector [31] - National unemployment fell to 9.8% in September, the lowest level in two years [34] - Inflation decreased to 5.4% in October, the lowest level since the end of 2021 [34] Company Strategy and Development Direction - The company aims to leverage synergies and efficiencies through the newly named Aval Valor Compartido (AVC) [10][11] - The company is supporting the central bank's initiative for a real-time payment system called BREVE, enhancing financial inclusion [14][15] - The company expects to return to double-digit profitability and benefit from stronger growth in real-term services by 2025 [70] Management's Comments on Operating Environment and Future Outlook - Management noted that inflation trends are positive, suggesting a need for faster rate cuts from the central bank [28] - The company anticipates GDP growth to exceed 2.5% in 2025, with a more predictable and lower inflation environment [70] - The fiscal situation remains a challenge, limiting the space for a more expansive monetary policy [41] Other Important Information - The company achieved its highest score in the Corporate Sustainability Assessment, placing it in the 90th percentile [17] - The company disbursed 10.6 trillion pesos under the Pacto por el Crédito program, aimed at supporting prioritized sectors [88] Q&A Session Summary Question: Mortgage market strategy and ROE trends - The company expects to continue gaining market share in mortgages due to being underweighted compared to peers and anticipates ROE trends to improve through a combination of cost control and market growth [74][76] Question: Consumer vs. commercial segment performance - The commercial segment is lagging due to the typical cycle where consumer performance leads, with no specific sector identified as particularly challenging [82][83] Question: NIM performance and guidance - NIM for 2024 is expected to be in the 3.6% area, with improvements projected for 2025 [87] Question: Loan program conditions - Loans disbursed under the Pacto por el Crédito have special conditions, including lower rates for housing credit and guarantees for renewable energy projects [89]

Financial Data and Key Metrics Changes - The second quarter showed stronger loan and deposit growth, with combined gross loans growing 1.8%, reaching a 25% market share by March 2024 [24] - Net income to shareholders was COP204 billion, with a return on average equity of 4.9% [26][41] - Total assets grew 3.2% over the quarter to COP317 trillion, with gross loans reaching COP193 trillion, growing 2.4% during the quarter and 4.8% year-on-year [29] Business Line Data and Key Metrics Changes - Commercial loans expanded 2.9% in the quarter and 5.9% year-on-year, while consumer loans resumed growth at 0.9% [30] - Mortgages grew 4.3% over the quarter and 10.8% year-on-year [30] - The quality of consumer loans began to improve, while commercial loans and mortgages showed slight deterioration [28] Market Data and Key Metrics Changes - The Colombian economy showed an annual growth of 2% through May 2024, influenced by the recovery of the global economy and better performance in sectors like public administration and agriculture [14] - Inflation trended down, falling below 7% in July, with expectations for it to trend towards 5.6% for the year [17][19] - The current account deficit reduced to levels close to 2% of GDP, supported by lower demand for imports and increased inflows from remittances and tourism [19] Company Strategy and Development Direction - The company aims to support Colombia's economic recovery by launching a group-wide plan to contribute to sustainable growth and employment generation in key sectors such as SMEs, housing, and energy transition [23] - An ambitious corporate synergies and efficiency plan is being designed to enhance performance [24] - The company is focused on sustainable growth and expects a better macroeconomic scenario in the second half of the year to support profitability [42] Management's Comments on Operating Environment and Future Outlook - Management noted that economic growth remains below historical levels, with investment well below pre-pandemic estimates [13][15] - The company expects loan growth rates to rise later in the year due to normalization of monetary policy and improvement in consumer loan quality [30] - The management expressed confidence in the team's ability to strengthen market position and achieve long-term strategic goals [9] Other Important Information - The company appointed new leadership in key positions to strengthen management teams [8][9] - Grupo Aval ranked sixth in Latin America for its commitment to diversity and inclusion, with Banco de Bogotá ranking first [10] Q&A Session Summary Question: Confirmation of ROE guidance - The ROE guidance is confirmed at 6.5% [44] Question: Impact of Banco Popular's equity issuance - Banco Popular's issuance is supported by Grupo Aval, which has financed it in the past [44] Question: Expectations for 2025 results - Management can only provide directional guidance for 2025, emphasizing a positive trend in NIM and cost of risk [44] Question: Rationale for Banco Popular's capital raise - The decision to strengthen Banco Popular is due to its recent losses and the potential for future growth, despite its current strong capitalization [49] Question: Update on Tier 2 capital raising for Banco Popular - The group is ready to support the Tier 2 capital raise, with no market execution risk anticipated [52]

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].