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]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report Of Foreign Private Issuer Pursuant To Rule 13a-16 Or 15d-16 Of The Securities Exchange Act Of 1934 For the month of March 2023 Commission File Number: 000-54290 Grupo Aval Acciones y Valores S.A. (Exact name of registrant as specified in its charter) Carrera 13 No. 26A - 47 Bogotá D.C., Colombia (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under c ...

Financial Data and Key Metrics Changes - Grupo Aval's total attributable net income for 2022 was Ps. 2.5 trillion, a decrease of 27.5% compared to 2021, with net income from continuing operations at Ps. 1.889 trillion, down 24.7% year-on-year [17][44] - The company reported a return on average assets of 1.6% and a return on average equity of 14% for the year [26][45] - The net interest margin (NIM) on loans contracted 41 basis points to 5.29% in 2022, while the overall NIM on loans decreased 67 basis points to 3.68% [36][45] Business Line Data and Key Metrics Changes - Loans grew 18.1% year-on-year, with commercial loans increasing by 18.3% and consumer loans by 17% [28][29] - Personal loans saw a significant increase of 33.7%, while automobile loans and credit cards grew by 18.9% and 17.8%, respectively [28] - The quality of loan portfolios improved, with Stage 1 loans representing 87.2% of gross loans, up from 81.7% a year earlier [30] Market Data and Key Metrics Changes - Colombia's GDP grew by 7.5% in 2022, driven by strong private consumption and investment dynamics [11][12] - Inflation reached 13.1% in December 2022, the highest since 1999, with food prices contributing significantly to the increase [13] - The Central Bank's repo rate increased to 12.75%, with expectations of further hikes due to persistent inflation [14] Company Strategy and Development Direction - Grupo Aval is focusing on digital transformation, with a significant increase in digital product sales and transactions, which represented almost 70% of total transactions [18][19] - The company aims to strengthen its ESG efforts, having joined the United Nations global pact and received certifications for sustainability [20][21] - The strategy includes careful capital allocation and maintaining cost control amid a challenging economic environment [27] Management's Comments on Operating Environment and Future Outlook - Management noted that the economic environment in Colombia has become challenging, with high inflation and increased cost of funds impacting consumer lending [7][10] - The company anticipates slower loan growth in 2023, with expectations of nominal growth around 10% and real growth close to 0% [27] - Future guidance includes loan growth expectations of 9% to 11% and a cost of risk net of recoveries in the range of 1.5% to 1.6% [45] Other Important Information - The sale of a 20.89% stake in BAC Holding International Corp. resulted in a one-time loss of Ps. 678 billion, impacting the fourth quarter results [9][22] - The company has implemented cost containment initiatives, with total operating expenses growing 9.1% in 2022, below the inflation rate [42][43] Q&A Session Summary Question: Rationale for the sale of BHI - Management explained that the sale was driven by the need to simplify capital allocation and unlock value, as BHI had grown to be the same size as its parent company, Banco de Bogotá [50][52] Question: Impact of lower rates on margins - Management indicated that while higher rates initially compressed margins, they expect improvements as the market adjusts to the net stable funding ratio and as fixed loans reprice [53][56] Question: Dividend payout expectations - Management noted that retail banks need to be cautious with dividend payouts, while corporate banks have more room for dividends, maintaining a payout policy of 40% to 50% [62]

Financial Data and Key Metrics Changes - The company reported a 3.5% growth in assets during the quarter and a 14.6% year-on-year increase [23] - Attributable net income for the quarter was Ps. 480 billion, translating to Ps. 17.2 per share, with a return on average assets of 1.3% and return on average equity of 9.8% [33] Business Line Data and Key Metrics Changes - Gross loans grew by 5.1% for the quarter and 16.5% year-on-year, with commercial loans increasing by 4.5% quarterly and 15.4% annually [24] - Consumer loans rose by 5.8% over the quarter and 17.3% year-on-year, while personal loans grew by 10.9% quarterly and 29.2% annually [24] - Mortgages expanded by 6.8% over the quarter and 21.4% year-on-year [25] Market Data and Key Metrics Changes - Colombia's GDP grew by 7.1% in Q3 2022 compared to the same quarter last year, with private consumption increasing by 7.8% [11] - The unemployment rate in Colombia reached 10.7% in September, showing improvement from 12.6% a year earlier [12] Company Strategy and Development Direction - The company is focusing on digital transformation, with digital customers reaching nearly 5 million and digital transactions accounting for almost 70% of total transactions [17][18] - The company plans to navigate through a challenging environment by deploying cost control initiatives and investing in advanced analytics and digital strategies [23] Management's Comments on Operating Environment and Future Outlook - Management highlighted the impact of resilient inflation and monetary policy contraction on the economy, with expectations of slower growth in 2023 [9][10] - The company anticipates loan growth to moderate in 2023 due to lower inflation and GDP growth, alongside higher interest rates [24][35] Other Important Information - The effective income tax rate during the quarter was nearly 30% higher than the previous quarter, primarily due to the sources of pre-tax income [23] - The company expects a full-year NIM in the 3.75% to 4% range for 2023, with a return on average equity projected between 13% and 14% [35] Q&A Session Summary Question: Tax reform impact on income tax rate - Management confirmed a 5 percentage point surcharge for banks, with a marginal change of 2 percentage points affecting only the banking business [37][39] Question: Pension reform implications - Management indicated that the pension reform could significantly reduce monthly revenue for Porvenir, but the overall impact on profitability may be limited [41][46] Question: Funding needs for the Holdco - Management stated that there are no immediate funding needs for the Holdco after the recent bond payment, with the next maturity not due until 2030 [39] Question: FX losses explanation - Management explained that FX losses were due to higher costs associated with derivatives and depreciation, which may not be recurring [47][48] Question: NIM strategy going forward - Management indicated that they expect NIM to improve in the second half of 2023, with strategies to enhance loan mix and margins [66]