Financial Data and Key Metrics Changes - The company's total assets grew by 4.3% quarter-on-quarter and 5.1% year-on-year, with Colombian assets increasing by 2.7% quarterly and 0.3% annually [24][25] - The gross loan portfolio increased by 3.8% over the quarter and 4.4% year-on-year, with Colombian loans growing by 1.7% during the quarter [26][27] - Attributable net income for Q1 2021 was 792 billion pesos, representing a 24.7% increase year-on-year [42] Business Line Data and Key Metrics Changes - Retail lending products showed substantial performance, with consumer loans in Colombia increasing by 2.7% in the quarter and 8.1% year-on-year [26][27] - Payroll lending, which constitutes 60% of the Colombian consumer portfolio, grew by 5.7% over the quarter [27] - The corporate loan portfolio in Colombia grew by 1% during the quarter, recovering from previous contractions [27] Market Data and Key Metrics Changes - The Colombian economy grew by 2% in Q1 2021, surprising market expectations of contraction [10] - The Central Bank raised its GDP growth forecast for Colombia to 6% from 5.2% [12] - Inflation in Colombia reached 1.95% in April, up from 1.51% the previous month, with expectations of reaching around 3% by year-end [13] Company Strategy and Development Direction - The company is focused on digitalization, with active digital clients growing by almost 30% year-on-year [19] - There is a strong emphasis on cost containment and efficiency improvements through digital initiatives [21] - The company anticipates further improvement in economic activity supported by stronger business sentiment and increased consumer spending [11] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic recovery, noting that tailwinds such as an improving economy and resilient loan portfolio may outweigh headwinds like social unrest [20][22] - The company is closely monitoring social unrest and its potential impact on operations, while also being vigilant about the ongoing pandemic [22] - Future guidance includes loan growth expectations of 9% to 10% and a cost of risk between 2.3% and 2.4% [42] Other Important Information - The company reported a significant increase in digital transactions, with nearly 70% of monetary transactions conducted through digital channels [19] - The cost of risk improved to 2.2%, down from 3.5% in the previous quarter [33] Q&A Session Summary Question: Inquiry about double leverage at the group level - Management explained that they have maintained debt levels and have strategies in place to ensure liquidity for bond payments, with a focus on lending to subsidiaries at favorable rates [44][45][46] Question: Asset quality and cost of risk guidance - Management confirmed that the cost of risk guidance has been revised to 2.3% to 2.4%, citing improved asset quality despite ongoing uncertainties [53][54] Question: Charge-offs and specific segments - Management acknowledged an increase in charge-offs but noted that they are still within historical averages, with specific segments being more affected than others [56][57] Question: Tax reform prospects - Management discussed the uncertainty surrounding tax rates and potential reforms, indicating that the most likely scenario is maintaining current tax levels [60][62] Question: Impact of social unrest on operations - Management confirmed that they are monitoring the situation closely, particularly regarding its impact on Banco de Occidente and overall operations [64][65]

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, 2020 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 Performance - Grupo Aval's consolidated assets grew by 22% year-over-year to COP 334 trillion[7] - Attributable net income for the quarter was COP 691 billion, with a year-to-date net income of COP 171 trillion[7] - Return on Average Assets (ROAA) was 15% and Return on Average Equity (ROAE) was 136% for the quarter[7] Loan Portfolio - Consolidated gross loans increased by 17% year-over-year to COP 210 trillion[7] - Consolidated deposits grew by approximately 25% year-over-year to COP 217 trillion[7] - The 90 days past due loans to gross loans ratio was 32% in 3Q20, compared to 33% in 3Q19 and 30% in 2Q20[6] Regional Performance - In Colombia, gross loans reached COP 1318 trillion, a 79% increase compared to 3Q19[10] - Deposits in Colombia amounted to COP 1326 trillion, up 127% from 3Q19[10] - Central America saw gross loans of COP 783 trillion, a 370% increase compared to 3Q19[10] - Deposits in Central America reached COP 845 trillion, a 500% increase from 3Q19[10] Key Ratios - The efficiency ratio improved to 440% in 3Q20, compared to 479% in 3Q19[6] - Net Interest Margin (NIM) was 51% in 3Q20, a decrease from 57% in 3Q19[6] - Deposits to Net Loans ratio stood at 107x[6]

Grupo Aval Acciones y Valores S.A. (NYSE:AVAL) Q3 2020 Earnings Conference Call November 19, 2020 9:00 AM ET Company Participants Luis Carlos Sarmiento Gutiérrez - President and CEO Diego Fernando Solano Saravia - CFO Conference Call Participants Jason Mollin - Scotiabank Gabriel Nobrega - Citigroup Yuri Fernandes - J.P. Morgan Andres Soto - Santander Nicolas Riva - Bank of America Merrill Lynch Sebastian Gallego - Credicorp Capital Carlos Gomez - HSBC Piedad Alessandri - CrediCorp Capital Julián Ausique - ...

Grupo Aval Acciones y Valores S.A. (NYSE:AVAL) Q2 2020 Earnings Conference Call August 28, 2020 10:00 AM ET Company Participants Luis Carlos Sarmiento Gutiérrez - Chief Executive Officer Diego Fernando Solano Saravia - Chief Financial Officer Conference Call Participants Gabriel Nóbrega - Citi Group Sebastián Gallego - CrediCorp Capital Yuri Fernandes - JPMorgan Andres Soto - Santander Carlos Gomez - HSBC Nicolas Riva - Bank of America. Julián Ausique - Davivienda Corredores Alonso Aramburu - BTG Pactual Op ...

Grupo Aval Acciones y Valores S.A. (NYSE:AVAL) Q1 2020 Earnings Conference Call May 20, 2020 10:00 AM ET Company Participants Luis Carlos Sarmiento Gutiérrez - President Diego Fernando Solano Saravia - Chief Financial Officer Conference Call Participants Andres Soto - Santander Investment Securities, Inc. Adriana De Lozada - Scotiabank Gabriel da Nóbrega - Citibank Nicolas Riva - Bank of America Merrill Lynch Judy Fernandez - JPMorgan Chase & Co. Carlos Gomez-Lopez - HSBC Securities Johanna Castro - Itaú BB ...

[Presentation of Financial and Other Information](index=6&type=section&id=PRESENTATION%20OF%20FINANCIAL%20AND%20OTHER%20INFORMATION) [Financial Statements and Conventions](index=6&type=section&id=Financial%20statements%20and%20Conventions) Outlines the report's accounting conventions, currency translations, key definitions, and data sources - All peso amounts are translated to U.S. dollars at a rate of **Ps 3,277.14 per U.S.$1.00** as of December 31, 2019, unless otherwise noted[8](index=8&type=chunk) - The consolidated financial statements for the years ended December 31, 2019, 2018, and 2017 are prepared in accordance with **International Financial Reporting Standards (IFRS)** as issued by the International Accounting Standards Board (IASB)[11](index=11&type=chunk) - The company adopted **IFRS 16 (Leases)** on January 1, 2019, using a modified retrospective approach without restating prior period comparatives[12](index=12&type=chunk) - Market share and competitive performance data are based on separate financial information prepared under **Colombian IFRS** as reported to the Superintendency of Finance, which may differ from the consolidated IFRS statements[23](index=23&type=chunk) - Grupo Aval's principal competitors in Colombia are identified as **Bancolombia, Davivienda, and BBVA Colombia**, while in Central America, competitors include Bancolombia, Banco General, and Banco Industrial[26](index=26&type=chunk)[28](index=28&type=chunk) [Part I](index=15&type=section&id=PART%20I) [Item 3. Key Information](index=15&type=section&id=ITEM%203.%20KEY%20INFORMATION) Presents selected consolidated financial data and a detailed discussion of significant business and security-related risks [A. Selected financial data](index=15&type=section&id=A.%20Selected%20financial%20data) Provides a five-year summary of key financial data from audited consolidated statements under IFRS Consolidated Statement of Income (2017-2019) | | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | **Total interest income** | 19,552.7 | 18,356.6 | 18,741.8 | | **Total interest expense** | (8,267.2) | (7,484.8) | (8,227.7) | | **Net interest income** | 11,285.5 | 10,871.8 | 10,514.1 | | **Net impairment loss on financial assets** | (3,755.1) | (3,797.3) | (3,854.9) | | **Income before income tax expense** | 7,451.7 | 7,334.1 | 4,915.2 | | **Net income for the year** | 5,365.5 | 5,184.6 | 3,162.4 | | **Net income attributable to Owners of the parent** | 3,034.4 | 2,912.7 | 1,962.4 | Consolidated Statement of Financial Position (2017-2019) | | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | **Total loans, net** | 173,942.3 | 168,685.7 | 160,754.3 | | **Total assets** | 278,832.6 | 259,675.2 | 236,538.5 | | **Customer deposits** | 175,491.4 | 164,359.5 | 154,885.2 | | **Total liabilities** | 245,484.3 | 230,120.8 | 210,667.3 | | **Total equity** | 33,348.3 | 29,554.3 | 25,871.2 | | **Equity attributable to owners of the parent** | 19,850.6 | 17,789.7 | 16,287.0 | Key Profitability and Credit Quality Ratios (2017-2019) | Ratio | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | **ROAA** | 2.0% | 2.2% | 1.4% | | **ROAE** | 16.4% | 17.8% | 12.6% | | **Efficiency ratio** | 47.6% | 45.7% | 50.1% | | **Cost of risk (net)** | 2.2% | 2.4% | 2.5% | | **Loans past due > 90 days / gross loans** | 3.3% | 3.1% | 2.8% | [D. Risk factors](index=23&type=section&id=D.%20Risk%20factors) Details material risks related to operations in Colombia and Central America, the financial industry, and the company's securities [Risks relating to Colombia and other countries in which we operate](index=23&type=section&id=Risks%20relating%20to%20Colombia%20and%20other%20countries%20in%20which%20we%20operate) Details macroeconomic, political, and social risks in Colombia and Central America impacting performance - The company's results are **materially affected by economic and political conditions** in Colombia and Central America, including changes in monetary policy, exchange rates, and governmental influence[65](index=65&type=chunk)[70](index=70&type=chunk) - The company and its officers are subject to **ongoing investigations** by the DOJ, SEC, and Colombian authorities regarding the Ruta del Sol Project Sector 2, which could result in significant penalties and reputational harm[90](index=90&type=chunk)[93](index=93&type=chunk)[95](index=95&type=chunk) - Recent tax reforms in Colombia (Law 2010 of 2019) introduced changes including a **progressive reduction of the corporate income tax rate** and a temporary surtax for financial institutions[107](index=107&type=chunk) - The **COVID-19 outbreak** poses a significant risk, causing economic disruption that could adversely affect loan growth, fee income, and overall financial results[117](index=117&type=chunk)[118](index=118&type=chunk)[123](index=123&type=chunk) [Risks relating to our businesses and industry](index=38&type=section&id=Risks%20relating%20to%20our%20businesses%20and%20industry) Outlines operational and industry-specific risks including credit, market, competition, and cybersecurity threats - A deterioration in the asset quality of the banking subsidiaries' loan portfolios could lead to **increased impairment losses**, particularly from customers susceptible to economic downturns[127](index=127&type=chunk)[128](index=128&type=chunk) - The company is subject to regulatory changes, including the implementation of **Basel III capital requirements** in Colombia by 2021 and supervision as a financial conglomerate, which could require additional capital[152](index=152&type=chunk)[160](index=160&type=chunk)[164](index=164&type=chunk) - **Cybersecurity threats** have increased significantly, and a security breach could result in financial loss, regulatory sanctions, and reputational damage[246](index=246&type=chunk)[248](index=248&type=chunk) - The company faces **intense competition** from large local and foreign banks as well as non-traditional providers, which could affect market share and profitability[254](index=254&type=chunk)[257](index=257&type=chunk) - The company is controlled by Mr. Sarmiento Angulo, who beneficially owns **97.5% of common shares**, allowing him to determine the outcome of substantially all shareholder actions[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk) [Risks relating to our preferred shares and ADSs](index=76&type=section&id=Risks%20relating%20to%20our%20preferred%20shares%20and%20ADSs) Details risks for preferred shareholders and ADS holders, including exchange rate volatility and limited voting rights - Significant fluctuations in the **Colombian peso to U.S. dollar exchange rate** could adversely affect the U.S. dollar value of dividends and the market price of ADSs[277](index=277&type=chunk)[278](index=278&type=chunk) - The Colombian securities market is **relatively small and illiquid**, which may impair the ability of shareholders to sell preferred shares at the desired price and time[280](index=280&type=chunk)[281](index=281&type=chunk) - Holders of preferred shares and ADSs have **limited rights**, including no voting rights for the election of directors, and may face difficulties protecting their interests[285](index=285&type=chunk)[286](index=286&type=chunk)[288](index=288&type=chunk) - As a foreign private issuer, the company follows **Colombian corporate governance practices**, which differ from NYSE standards and may offer fewer investor protections[293](index=293&type=chunk)[294](index=294&type=chunk) - **Enforcement of U.S. court judgments in Colombia is difficult** and not guaranteed, as there is no bilateral treaty for automatic recognition[304](index=304&type=chunk)[802](index=802&type=chunk) [Item 4. Information on the Company](index=82&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) Provides a comprehensive overview of the company's history, corporate structure, business strategy, and operational segments [A. History and development of the company](index=82&type=section&id=A.%20History%20and%20development%20of%20the%20company) Establishes the company's market leadership and details its history, multi-brand strategy, and key growth pillars - Grupo Aval is the **largest banking group in Colombia and Central America** by total assets as of December 31, 2019[307](index=307&type=chunk) - The company operates a **multi-brand strategy**, with each of its four Colombian banks focusing on specific customer segments while adhering to group-level policies[311](index=311&type=chunk)[332](index=332&type=chunk) - The company's growth strategy is based on five pillars: **Risk management, Innovation and Digitalization, Efficiencies, Talent management, and Sustainability**[336](index=336&type=chunk)[345](index=345&type=chunk) - Key historical milestones include the acquisition of **BAC Credomatic in 2010**, the initial public offering of ADSs on the NYSE in 2014, and becoming a supervised Financial Conglomerate in 2019[376](index=376&type=chunk)[377](index=377&type=chunk) [B. Business overview](index=99&type=section&id=B.%20Business%20overview) Details the company's operational structure, competitive positioning, lending activities, and regulatory environment [Our Operations and Competition](index=99&type=section&id=Our%20Operations%20and%20Competition) Presents the company's operational structure and competitive analysis with market share data for key segments Colombian Market Share - Deposits (Dec 31, 2019) | | Grupo Aval aggregate | Bancolombia | Davivienda | BBVA Colombia | | :--- | :--- | :--- | :--- | :--- | | **Checking accounts** | 37.5% | 24.0% | 9.7% | 10.8% | | **Savings accounts** | 25.7% | 27.2% | 13.2% | 10.4% | | **Time deposits** | 23.0% | 22.1% | 15.8% | 12.5% | | **Total deposits** | 26.4% | 24.8% | 13.7% | 11.2% | Central American Market Share (Dec 31, 2019) | | BAC Credomatic | Bancolombia | Banco General | Banco Industrial | | :--- | :--- | :--- | :--- | :--- | | **Loans, net** | 10.3% | 9.3% | 7.6% | 6.0% | | **Assets** | 9.4% | 8.0% | 7.4% | 7.0% | | **Deposits** | 9.7% | 8.1% | 7.0% | 6.5% | Porvenir Market Share - Assets Under Management (Dec 31, 2019) | Fund Type | Porvenir | Protección | Colfondos | Skandia | | :--- | :--- | :--- | :--- | :--- | | **Mandatory** | 44.3% | 35.9% | 13.5% | 6.3% | | **Severance** | 47.9% | 38.9% | 10.6% | 2.6% | | **Total AUM** | 42.9% | 36.6% | 12.9% | 7.6% | [Business Segments and Statistical Data](index=106&type=section&id=Business%20Segments%20and%20Statistical%20Data) Provides a detailed statistical breakdown of each business segment's loan portfolios, deposits, and distribution networks Consolidated Total Loans, Net by Segment (Dec 31, 2019) | Segment | Commercial | Consumer | Mortgages | Microcredit | Total Loans, Net | | :--- | :--- | :--- | :--- | :--- | :--- | | **Banco de Bogotá (Consolidated)** | 69,208.8 | 33,440.1 | 15,199.0 | 404.0 | 113,110.1 | | **Banco de Occidente** | 22,062.0 | 7,208.2 | 1,641.3 | — | 29,374.1 | | **Banco Popular** | 7,333.2 | 11,961.1 | 951.8 | 5.4 | 19,260.2 | | **Banco AV Villas** | 2,947.8 | 6,797.0 | 2,419.3 | 0.9 | 11,671.2 | | **Corficolombiana** | 1,693.0 | 434.1 | 10.2 | — | 2,115.9 | | **Grupo Aval Consolidated Total** | **101,655.7** | **59,840.5** | **20,221.7** | **410.3** | **173,942.3** | Consolidated Customer Deposits by Segment (Dec 31, 2019) | Segment | Checking accounts | Savings accounts | Time deposits | Total Deposits | | :--- | :--- | :--- | :--- | :--- | | **Banco de Bogotá (Consolidated)** | 33,990.7 | 34,744.9 | 48,739.5 | 117,795.0 | | **Banco de Occidente** | 6,366.4 | 12,574.6 | 9,728.0 | 28,726.4 | | **Banco Popular** | 1,101.0 | 8,300.2 | 7,573.3 | 16,988.9 | | **Banco AV Villas** | 1,072.5 | 6,156.9 | 4,618.2 | 11,851.4 | | **Corficolombiana** | — | 467.8 | 3,530.7 | 4,067.5 | | **Grupo Aval Consolidated Total** | **42,449.7** | **59,352.8** | **73,225.2** | **175,491.4** | - The loan portfolio is analyzed by risk categories from 'A' (Normal risk) to 'E' (Risk of non-recoverability); as of Dec 31, 2019, **90.6% of the portfolio was classified as 'A' (Normal risk)**[625](index=625&type=chunk)[629](index=629&type=chunk) [Supervision and regulation](index=156&type=section&id=Supervision%20and%20regulation) Outlines the regulatory framework, including supervision as a financial conglomerate and Basel III capital requirements - Grupo Aval and its subsidiaries are primarily regulated by the **Superintendency of Finance, the Central Bank, and the Ministry of Finance** in Colombia[666](index=666&type=chunk) - Since February 6, 2019, under Law 1870, Grupo Aval is supervised as the **financial holding company of the Aval Financial Conglomerate**, subject to consolidated supervision[681](index=681&type=chunk)[692](index=692&type=chunk) - Colombian credit institutions are transitioning to **Basel III capital requirements**, effective January 1, 2021, which includes higher minimum capital ratios and capital buffers[717](index=717&type=chunk)[719](index=719&type=chunk)[720](index=720&type=chunk) - Lending to a single borrower is generally limited to **10% of a bank's technical capital**, extendable to 25% with eligible collateral or for financing 4G infrastructure concessions[745](index=745&type=chunk)[746](index=746&type=chunk) - FOGAFIN provides deposit insurance covering up to **Ps 50 million** per individual or corporation in the event of a bank liquidation[781](index=781&type=chunk) [D. Property, plant and equipment](index=189&type=section&id=D.%20Property,%20plants%20and%20equipment) Details the carrying amount of property, plant, and equipment categorized by asset type and operating segment Property, Plant and Equipment by Segment (Dec 31, 2019, in Ps billions) | Segment | Buildings and land | Machinery | Equipment | Bearer plants | Other properties | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Banco de Bogotá** | 1,225.7 | 6.4 | 679.1 | — | 188.5 | 2,099.7 | | **Banco de Occidente** | 357.4 | 0.0 | 95.8 | — | 11.3 | 464.6 | | **Banco Popular** | 444.0 | 0.7 | 69.8 | — | 13.2 | 527.7 | | **Banco AV Villas** | 248.3 | — | 36.7 | — | 13.3 | 298.3 | | **Corficolombiana** | 955.5 | 1,118.9 | 39.0 | 224.1 | 51.9 | 2,389.3 | | **Grupo Aval Total** | **3,231.0** | **1,126.5** | **922.1** | **224.1** | **279.6** | **5,783.2** | [Item 5. Operating and Financial Review and Prospects](index=189&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) Presents management's discussion and analysis of financial condition and results of operations for the last three years [A. Operating results](index=189&type=section&id=A.%20Operating%20results) Provides management's analysis of financial performance, including key economic factors and a segment-by-segment review [Principal Factors and Critical Accounting Policies](index=190&type=section&id=Principal%20Factors%20and%20Critical%20Accounting%20Policies) Discusses key macroeconomic drivers and critical accounting policies that require significant management judgment - Colombian GDP grew at a rate of **3.3% in 2019**, up from 2.5% in 2018, driven mainly by private domestic consumption[816](index=816&type=chunk)[817](index=817&type=chunk) - The Colombian Central Bank's interest rate remained stable at **4.25% throughout 2019**, while inflation closed the year at 3.80%[827](index=827&type=chunk)[828](index=828&type=chunk) - Critical accounting policies requiring significant judgment include **impairment of financial assets (ECL)**, fair value of financial instruments, goodwill impairment, and deferred tax assets[838](index=838&type=chunk)[840](index=840&type=chunk)[841](index=841&type=chunk) [Results of Operations for the Year Ended December 31, 2019 Compared to the Year Ended December 31, 2018](index=195&type=section&id=Results%20of%20Operations%20for%20the%20Year%20Ended%20December%2031,%202019%20Compared%20to%20the%20Year%20Ended%20December%2031,%202018) Analyzes the consolidated and segment-level financial results for 2019 compared to 2018 Grupo Aval Consolidated Results (2019 vs 2018) | (in Ps billions) | 2019 | 2018 | Change (%) | | :--- | :--- | :--- | :--- | | **Net interest income** | 11,285.5 | 10,871.8 | 3.8% | | **Net impairment loss on financial assets** | (3,755.1) | (3,797.3) | (1.1)% | | **Net income from commissions and fees** | 5,455.3 | 4,839.6 | 12.7% | | **Other expenses** | (10,171.3) | (9,371.0) | 8.5% | | **Net income for the year** | 5,365.5 | 5,184.6 | 3.5% | | **Net income attributable to Owners of the parent** | 3,034.4 | 2,912.7 | 4.2% | - Banco de Bogotá's attributable net income **decreased by 5.8%**, impacted by higher operating expenses and impairment losses[903](index=903&type=chunk) - Banco de Occidente's attributable net income **increased by 36.3%**, driven by a significant decrease in net impairment loss and higher other income[985](index=985&type=chunk) - Corficolombiana's attributable net income **decreased by 5.5%**, mainly due to lower gross profit from its infrastructure projects compared to a strong 2018[1095](index=1095&type=chunk) [Results of Operations for the Year Ended December 31, 2018 Compared to the Year Ended December 31, 2017](index=250&type=section&id=Results%20of%20Operations%20for%20the%20Year%20Ended%20December%2031,%202018%20Compared%20to%20the%20Year%20Ended%20December%2031,%202017) Analyzes the consolidated and segment-level financial results for 2018 compared to 2017 Grupo Aval Consolidated Results (2018 vs 2017) | (in Ps billions) | 2018 | 2017 | Change (%) | | :--- | :--- | :--- | :--- | | **Net interest income** | 10,871.8 | 10,514.1 | 3.4% | | **Net impairment loss on financial assets** | (3,797.3) | (3,854.9) | (1.5)% | | **Net income from sales of goods and services** | 2,643.9 | 757.0 | 249.3% | | **Other expenses** | (9,371.0) | (9,003.1) | 4.1% | | **Net income for the year** | 5,184.6 | 3,162.4 | 63.9% | | **Net income attributable to Owners of the parent** | 2,912.7 | 1,962.4 | 48.4% | - The strong performance in 2018 was driven by **Colombia's economic recovery**, lower interest rates, strong results from non-financial operations, and a favorable tax impact[1136](index=1136&type=chunk)[1141](index=1141&type=chunk) - Banco de Bogotá's attributable net income **increased by 53.9%**, largely due to a Ps 956.0 billion increase in other income from PP&E optimizations and equity method investments[1192](index=1192&type=chunk)[1193](index=1193&type=chunk) - Corficolombiana's net income attributable to owners **increased by 121.1%**, driven by a Ps 1,886.9 billion increase in gross profit from the construction phases of 4G infrastructure projects[1144](index=1144&type=chunk)

Financial Data and Key Metrics Changes - Grupo Aval's total net income for 2019 reached PS.3.03 trillion, marking a 4.2% increase compared to 2018, with a return on average equity of 16.4% [19][46] - Consolidated assets grew by 7.4% year-over-year, while consolidated loans increased by 6%, driven by an 8% rise in consumer loans and a 9% rise in mortgage loans [20][32] - The cost of risk improved to 2.2% from 2.4% in the previous year, with a notable decrease in the fourth quarter to 2.1% [21][37] Business Line Data and Key Metrics Changes - The Colombian consumer and mortgage business expanded by 9.8% and 14.1% respectively over the year, while commercial loans grew by 4.3% [33] - Net fee income increased by approximately 13% for the year, driven by strong banking and pension fund fees [21] - Non-recurrent expenses impacted the bottom line by approximately PS.190 billion, primarily due to provisions related to CRDS and SITP [20] Market Data and Key Metrics Changes - Colombia's GDP growth for 2019 was 3.3%, up from 2.5% in 2018, with private consumption and investment increasing by 4.6% and 4.3% respectively [8][11] - The trade deficit widened to 3.8% of GDP in 2019 from 2.7% in 2018, driven by a 5.7% decrease in exports [12] - Employment deteriorated, with an average unemployment rate of 10.5% for 2019, up from 9.7% in 2018 [13] Company Strategy and Development Direction - The company is focusing on digitalization and cost optimization, with a goal to enhance efficiency and customer service [23] - Grupo Aval is cautious about 2020 guidance due to uncertainties from global events, including COVID-19 and oil price fluctuations [6][31] - The company aims to protect employee health and client services through remote work and digital access [7][49] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over the global impact of COVID-19 and the oil dispute, stating it is too early to revise 2020 guidance [6][7] - The company noted that while the Colombian economy showed resilience in 2019, the current environment poses risks to growth and fiscal stability [9][15] - Management highlighted the importance of proactive measures to manage credit risks and support clients in affected industries [51] Other Important Information - Grupo Aval issued a $1 billion bond in January 2020, with strong demand from international investors [28] - The company has fully provisioned all problem commercial loans, including Electricaribe, and is monitoring the impact of Ruta del Sol on its financials [20][66] Q&A Session Summary Question: What immediate strategies is the bank implementing during these uncertain times? - The bank is focusing on employee safety through remote work, enhancing digital services for clients, and proactively managing credit risks [49][51] Question: Can you elaborate on asset quality and NPL ratios? - The bank noted that while Electricaribe was written off, new loans like Ruta del Sol entered the books, affecting NPL ratios [53] Question: What is the potential short-term impact of market volatility on banking and pension management? - Management discussed the mixed effects of FX fluctuations on pension fund values and liquidity, as well as the impact on banking operations [55][57] Question: What is the exposure to oil and gas companies? - The bank's exposure to oil and gas is around 1.2% of the loan portfolio, primarily related to gas pipelines, with tourism exposure at 0.5% [66] Question: Update on the Multibank transaction and AT1 bond issuance? - The transaction is expected to proceed as planned, with ongoing discussions regarding the timing of the AT1 bond issuance by BAC Credomatic [66]