Grupo Aval Acciones y Valores S.A. (NYSE:AVAL) Q2 2022 Earnings Conference Call August 11, 2022 10:00 AM ET Company Participants Luis Carlos Sarmiento Gutierrez - Chief Executive Officer Diego Fernando Solano Saravia - Chief Financial Officer Operator Welcome to Grupo Aval Second Quarter 2022 Consolidated Results Conference Call. My name is Hilda and I will be your operator for today's call. Grupo Aval Acciones y Valores S.A., Grupo Aval is an issuer of securities in Colombia and in the United States SEC. A ...

Financial Data and Key Metrics Changes - The attributable net income for Q1 2022 was approximately 1.73 trillion pesos, which includes an extraordinary gain of 720 billion pesos from the realization of certain OCI accounts due to the spin-off [21][40] - The pro forma attributable net income, excluding extraordinary gains and BHI's net income, is similar to the best historical results achieved in previous years [22] - The total equity decreased by 9.66 trillion pesos due to the spin-off, with only 3.56 trillion pesos being tangible equity [16][34] Business Line Data and Key Metrics Changes - Gross loans grew by 8.5% year-on-year and 2.6% quarter-on-quarter, with commercial loans accounting for 57.5% of gross loans [27] - Consumer loans saw a 2.4% growth during the quarter and 11.6% year-on-year, driven by payroll loans [28] - The quality of the loan portfolio remained stable, with 90-day past due loans (PDLs) improving to 3.53% [30] Market Data and Key Metrics Changes - The Colombian economy grew by 8.5% in Q1 2022, with significant contributions from commercial activities and manufacturing [9] - Inflation reached 9.2% in April 2022, the highest since 2000, driven by supply factors [12] - The unemployment rate fell to 12.1% in March 2022, down from 14.7% a year earlier [11] Company Strategy and Development Direction - The spin-off of BHI was executed to strengthen the strategic positions of Banco de Bogota and Grupo Aval, allowing for independent trading and better adaptation to local market dynamics [15] - The company aims to focus on digital transformation, with a 45% increase in active digital clients and a target of 65% digital adoption by year-end [19] - The guidance for 2022 includes loan growth expectations of around 13%, with commercial loans growing at 12% and retail loans at 14% [42] Management's Comments on Operating Environment and Future Outlook - The management expressed concerns about inflation and its potential impact on GDP growth and loan quality, while remaining optimistic about the Colombian economy's recovery [22][23] - The upcoming elections in Colombia may introduce temporary uncertainties, but management believes in the country's ability to progress [23] - The Central Bank's monetary policy normalization is expected to continue, with potential rate hikes impacting loan growth [13][56] Other Important Information - The company reported a significant increase in non-financial sector contributions, particularly from toll roads benefiting from inflation [62] - The funding structure remains stable, with deposits accounting for 71% of funding, and a deposit to net loans ratio of 100% [33] Q&A Session Summary Question: Confirmation on $1 billion bond maturity payment - Management confirmed that the $1 billion bond maturity in September will be paid with existing resources and no new debt will be raised [44][46] Question: Capitalization needs post-spin-off - Management stated there is currently no need for equity injection at Banco de Bogota or Grupo Aval, attributing stability to recent decisions regarding dividends [45][46] Question: Pro forma return on assets and equity - Management explained that pro forma numbers for return on assets and equity were not provided due to the complexity of assumptions involved [48][50] Question: Political and regulatory outlook - Management indicated uncertainty regarding potential regulatory changes but does not foresee negative impacts on the financial system [49][51] Question: Net stable funding ratio and liquidity - Management noted that liquidity ratios are under pressure but recent bond issuance by Banco Popular has improved their position [54][56] Question: Impact of rising interest rates on loan growth - Management acknowledged that while higher rates could slow economic growth, they believe the Central Bank's actions are appropriate given inflation concerns [56][57] Question: Fee income and non-financial sector guidance - Management explained that lower fee income was due to the spin-off and lower pension fund returns, while guidance for the non-financial sector has improved due to strong performance in toll roads [59][62]

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, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ OR ☐ SHELL COMPANY ...

Financial Data and Key Metrics Changes - Grupo Aval achieved the highest net income in its history for 2021, with a net income of COP3.3 billion, which is 40.4% higher than in 2020 and 9% higher than in 2019 [33] - Return on average equity was 15.3% and return on average assets was 1.65% for the year [33] - Consolidated assets grew by 13.6% year-on-year, while consolidated gross loans grew by 13.2% [34] Business Line Data and Key Metrics Changes - In Colombia, the gross loan portfolio grew by 6.6% over the year, with consumer loans showing strong demand, growing 11.5% for the full year [36][37] - Corporate lending growth in Colombia was weak, with a commercial loan portfolio growth of only 2.9% for the year [38] - In Central America, the gross loans portfolio increased by 8.3% in dollar terms year-on-year, with consumer loans growing by 3.9% and commercial loans by 3.7% [39] Market Data and Key Metrics Changes - The Colombian economy grew by 10.6% in 2021, the highest rate in its history, driven by a rebound in private consumption [11] - Inflation in Colombia closed the year at 5.62%, significantly up from 1.61% in 2020, with food prices increasing by a record high of 23.3% [15] - The current account deficit widened to 5.7% of GDP in 2021, primarily due to a trade balance deficit of $20.5 billion [18] Company Strategy and Development Direction - Grupo Aval plans to execute a spin-off of 75% of Back Holding International Corp, which owns its Central American banking group, to simplify corporate structure and enhance strategic focus on Colombia [28][29] - The company aims to improve its regulatory capital position and capture future growth opportunities through this spin-off [30] - The company is committed to ESG initiatives, including launching green products and participating in sustainability indices [25][27] Management's Comments on Operating Environment and Future Outlook - Management expects Colombia's GDP growth in 2022 to be in the range of 4% to 4.5%, despite challenges from the election year and inflationary pressures [14] - The company anticipates a strong growth rate in commercial loans supported by improving business confidence and economic activity [38] - Management highlighted the importance of maintaining a healthy loan portfolio quality, with expectations for cost of risk to remain stable [44] Other Important Information - The company reported a significant increase in digital clients, with active digital clients in Colombia totaling 3.8 million, a 44% increase year-on-year [23] - The company has implemented a hybrid work scheme post-pandemic, which is expected to enhance employee satisfaction and operational efficiency [9] Q&A Session Summary Question: Potential capital rise and dividend payment - Management indicated that not distributing dividends serves as a proxy for raising capital, and the spin-off will raise Banco de Bogota's capital ratios by about 130 basis points, reducing the need for additional capital raises for now [62] Question: Asset quality and reliefs - Management acknowledged improvements in asset quality, with 9.5% of total loans still under reliefs, and provided insights into the stability of the relief book and the quality of loans under reliefs [64]

Grupo Aval Acciones y Valores S.A (NYSE:AVAL) Q3 2021 Earnings Call November 18, 2021 ET Company Participants Luis Carlos Sarmiento Gutierrez - CEO & President Diego Solano Saravia - CFO Conference Call Participants Jason Mollin - Scotiabank Yuri Fernandes - JPMorgan Chase & Co. Julian Ausique - Davivienda Andres Soto - Santander Carlos Gomez-Lopez - HSBC Operator Welcome to Grupo Aval Third Quarter 2021 Consolidated Results Conference Call. My name is Hilda and I will be your operator for today’s call. Gru ...

Grupo Aval Acciones y Valores S.A. (NYSE:AVAL) Q2 2021 Earnings Conference Call August 12, 2021 10:30 AM ET Company Participants Luis Carlos Sarmiento Gutierrez - CEO & President Diego Solano Saravia - CFO Conference Call Participants Sebastián Gallego - CrediCorp Capital Adriana De Lozada - Scotiabank Brian Flores - ASA Investments Yuri Fernandes - JPMorgan Chase & Co. Julian Ausique - Davivienda Andres Soto - Santander Operator Welcome to Grupo Aval's Second Quarter 2021 Consolidated Results Conference Ca ...