Grupo Aval Acciones Y Valores Sa · BVC:GRUPOAVAL
Grupo Aval Acciones Y Valores Sa — FY2018 Earnings Presentation
22 slides from Grupo Aval Acciones Y Valores Sa's earnings presentation, Mar 19, 2019
Slide 1: Report of 4Q2018 and FY 2018 consolidated results
Report of 4Q2018 and FY 2018 consolidated results Information reported in Ps billions (1) and under IFRS (1) We refer to billions as thousands of millions.
Slide 2: Definitions of ratios and notes
Gross loans excludes interbank and overnight funds. Tangible Capital Ratio is calculated as Total Equity minus Goodwill and other Intangibles divided by Total Assets minus Goodwill and other Intangibles. Net Interest Margin includes net interest income plus net trading income from trading assets. Fe
Slide 3: Debt service coverage and leverage ratios
Debt service coverage and leverage ratios 4Q17 3Q18 4Q18 As of December 31, 2018 our combined double leverage (calculated as investments in subsidiaries at book value, subordinated loans to subsidiaries and goodwill as a percentage of shareholders' equity) was 1.15x. Finally, we present an evolution
Slide 4: IFRS 4Q18 and FY 2018 Consolidated Earnings Results
1 IFRS 4Q18 and FY 2018 Consolidated Earnings Results
Slide 5: Disclaimer
2 Disclaimer Grupo Aval Acciones y Valores S . A . (“Grupo Aval”) is an issuer of securities in Colombia and in the United States, registered with Colombia’s National Registry of Shares and Issuers ( Registro Nacional de Valores y Emisores ) and the United States Securities and Exchange Commission (
Slide 6: Consolidated key results for the year
3 Consolidated key results for the year Gross loans e xcludes interbank and overnight funds. Tangible Capital Ratio is calculated as Total Equity minus Goodwill and other Intangibles divided by Total Assets minus Goodwill and other Intangibl es. PDLs 90+ defined as loans more than 90 days past due.
Slide 7: Key results: Banco de Bogotá and Aval comparison tables
4 COP$ tn 2017 2018 18 vs 17 COP$ tn 2017 2018 18 vs 17 Gross Loans $ 112.7 $ 116.4 3.3% Gross Loans $ 46.3 $ 52.8 13.9% Deposits $ 110.5 $ 113.7 2.9% Deposits $ 44.4 $ 50.7 14.1% Deposits/Net Loans 0.98 x 0.99 x 0.00 x Deposits/Net Loans 0.92 x 0.95 x 0.03 x Tangible Equity Ratio 7.1% 7.7% 57 bps T
Slide 8: Macroeconomic context – Colombia (1/3)
5 1.0 2.0 3.0 4.0 5.0 6.0 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 2019E 2020E 3.2 3.3 GDP Growth Expectations (%) Source: Bloomberg Consensus Inflation Expectations (%) Macroeconomic context – Colombia (1/3) Source: Bloomberg Consensus
Slide 9: Macroeconomic context – Colombia (2/3)
6 0% 3% 5% 8% 10% 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 Real GDP growth Inflation Colombian Central Bank's Interest rate 4.25% 3.01% 2.9% 2% 4% 6% 8% Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Colombian Central Bank's Interes
Slide 10: Macroeconomic context – Colombia (3/3)
7 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 End of Period 2,392.5 2,598.4 2,598.7 3,086.8 3,149.5 3,000.6 2,919.0 2,880.1 3,000.7 2,885.6 3,050.4 2,936.7 2,984.0 2,780.5 2,930.8 2,972.2 3,249.8 Quarter Average 2,173.0 2,470.2 2,496.4 2,938.9 3,061.7 3,263.5
Slide 11: Macroeconomic context – Central America
8 Macroeconomic context – Central America Growth Outlook – Real GDP CAGR ’18 – ’21E Inflation per Country Central Banks’ Interest Rates Source: Bloomberg CR : Costa Rica, ES: El Salvador, GU: Guatemala, HO: Honduras, NI: Nicaragua, PA: Panamá Source: IMF WEO Oct - 18; (*) Aggregate growth of all the
Slide 12: Assets
9 68.0% 9.9% 1.7% Net loans and leases Fixed income investments Unconsolidated equity investments Other 68.0% 9.9% 1.7% 20.5% 4Q17 65.0% 9.9% 1.8% 23.3% 4Q18 Colombian operations , 70.3% Foreign (1) , 29.7% Colombian operations , 71.2% Foreign (1) , 28.8% Colombian operations , 69.8% Foreign (1) , 3
Slide 13: Gross loans breakdown
10 159.1 161.8 169.2 4Q17 3Q18 4Q18 4Q18 / 4Q17 = 6.4% 4Q18 / 3Q18 = 4.6% 4Q18 / 4Q17 = 3.7% 4Q18 / 3Q18 = 1.8% Growth excl. FX movement of Central American Operations 57.9% 56.6% 56.0% 31.7% 32.4% 32.8% 10.2% 10.7% 11.0% 0.3% 0.3% 0.3% Commercial Consumer Mortgages Microcredit 2.8% 10.1% 15.1% 3.9%
Slide 14: Loan portfolio quality and cost of risk
11 2.86% 2.52% 3.29% 2.66% 2.31% 3.09% 4Q17 3Q18 4Q18 Impairment loss / Average loans Impairment loss (net of recoveries of charged-off assets) / Average loans Loan portfolio quality Charge offs / Average NPLs Impairment loss / Average loans Impairment loss , net / Average loans Cost of Risk 3.89% 4
Slide 15: Loan portfolio quality
12 Loan portfolio quality 4Q17 3Q18 4Q18 4Q17 3Q18 4Q18 Commercial 3.21% 4.09% 3.88% 2.83% 3.52% 3.42% Consumer 5.09% 5.17% 4.83% 2.77% 2.89% 2.66% Mortgages 3.81% 4.08% 4.13% 2.07% 2.20% 2.25% Microcredit 15.09% 15.29% 16.52% 10.63% 11.32% 12.30% Total loans 3.89% 4.47% 4.25% 2.75% 3.19% 3.07% 30 d
Slide 16: Funding
13 Funding Figures in Ps. Trillions 4Q17 3Q18 4Q18 Others 0.3% 0.4% 0.4% Time deposits 40.4% 43.3% 40.7% Checking accounts 23.3% 21.8% 24.2% Savings accounts 36.0% 34.5% 34.8% Total deposits 4Q18 / 4Q17 = 6.1% 4Q18 / 3Q18 = 7.3% 154.9 153.2 164.4 Deposit composition 4Q18 / 4Q17 = 3.5% 4Q18 / 3Q18 =
Slide 17: Capital
14 Capital Attributable Shareholders Equity Attributable Equity + Minority Interest Figures in Ps. Trillions Consolidated Capital Adequacy of our Banks (%) 4Q17 3Q18 4Q18 Minority interest 9.6 11.0 11.8 Attributable equity 16.3 16.9 17.8 4Q18 / 4Q17 = 14.2% 4Q18 / 3Q18 = 5.9% 25.9 27.9 29.6 16.3 16.
Slide 18: Net interest margin
15 6.95% 6.78% 6.64% 4Q17 3Q18 4Q18 11.12% 10.62% 10.52% Avg. Yield on loans NIM – Net Interest Margin Net Interest Margin (1) Loans Interest Margin (2) Net Investments Margin (3) 4Q17 3Q18 4Q18 4Q18 / 4Q17 4Q18 / 3Q18 2.8 2.8 2.8 0.9% -0.2% Net interest income(1) (trillions) (1) Net Interest Income
Slide 19: Fees and other operating income
16 72.8% 73.0% 74.2% 6.4% 5.8% 5.6% 17.6% 18.3% 17.4% 3.1% 2.9% 2.8% 4Q17 3Q18 4Q18 Banking fees Trust activities Pension fees Other 1,312.5 1,336.1 1,459.7 4Q18/4Q17=11.2% 4Q18/3Q18=9.3% 13.3% - 3.0% 9.9% 0.3% 4Q18/3Q18 4Q18/4Q17 10.9% 5.4% 4.2% 6.4% 4Q18/3Q18 = 6.3% 4Q18/4Q17 = 8.4% Fees and other
Slide 20: Efficiency ratio
17 Efficiency ratio Efficiency Ratio is calculated as personnel plus administrative and other expenses excluding wealth tax divided by net interest income plus net trading income, other income and fees and other services income, net (excluding others). Operating expenses / Total Income Operating exp
Slide 21: Profitability
18 466.7 782.7 850.7 4Q17 3Q18 4Q18 Net income attributable to controlling interest $20.9 $35.1 $38.2 EPS $29.0 Profitability (1) ROAA for each quarter is calculated as annualized Net Income divided by average of total assets. (2) ROAE for each quarter is calculated as annualized Net Income attribut
Slide 22: Signature
19 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: March 18, 2019 GRUPO AVAL ACCIONES Y VALORES S.A. By: /s/ Jorge Adrián Rincón Plata Name: Jorge
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