Grupo Aval Acciones Y Valores Sa · BVC:GRUPOAVAL
Grupo Aval Acciones Y Valores Sa — JP Morgan Global Emerging Markets Corporate Conference (February 2025)
31 slides from Grupo Aval Acciones Y Valores Sa's conference presentation, February 2025
Slide 1: Corporate presentation
Corporate presentation February 2025 ADL no es empresa vigilada por la Superintendencia Financiera de Colombia
Slide 2: Disclaimer
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 an
Slide 3: A leading financial conglomerate in Colombia
A leading financial conglomerate in Colombia Key Consolidated Figures (Dec 24) Principales cifrasPs 327.9 Tn I US$ 74.4 Bn 1 Panama Total assets Ps 424.5 Tn I US$ 96.3 Bn1 Assets under management Ps 199.4 Tn I US$ 45.2 Bn1 1,009 Employees Gross loans 19 Branches 20 ATM’s Ps 200.9 Tn I US$ 45.6 Bn1 1
Slide 4: A story of continuous growth and excellence
A story of continuous growth and excellence Evolution of Grupo Aval’s unconsolidated assets Figures in Ps. billion Grupo Aval’s NYSE IPO 27,576 25,575 Preferred stock IFRS issuance Adoption BAC Spin-off 20,940 20,037 18,897 17,864 BAC acquisition 8,562 2,735 1999 2000 2001 2002 2003 2004 2005 2006 2
Slide 5: +50 years generating conscious progress throughout Colombia
Leveraged on organic and inorganic growth +50 years generating conscious progress throughout Colombia v 1971 - 1991 - 1991 - 1997 - 1998 - 2000 - 2010 - 2012 - 2014 - 2019 - 2021 - 1972 1998 1994 1999 1999 2007 2011 2013 2018 2020 2024 Acquisitions Acquisition of Entrance to Privatization Grupo Aval
Slide 6: Acquiring controlling stakes in our main subsidiaries
Acquiring controlling stakes in our main subsidiaries Limited 68.9% 72.3% 93.7% 79.9% 40.8% 94.5% 100.0% (1) Total Shares Owner Grupo Aval 8.7% 20.0% Banco de Bogotá 99.6% 34.7% 46.9% (2) 22.8% Banco de Occidente 4.2% 33.1% (3) 7.9% Banco Popular 5.2% 25.8% Corfi 5.5% (4) Total 99.6% 52.8% 100% 97.3
Slide 7: Generating value through main operating segments
Generating value through 3 main operating segments Banking services Commercial Banking Financial Services Strategic Focus Corporate Medium enterprises Segments SMEs and very small businesses Government Affluent Mass consumer market Silver economy and public employees Merchant Pension and severance f
Slide 8: Seven strategic pillars under a driving purpose
Grupo Aval's strategy is built around seven strategic pillars under a driving purpose Purpose: “Partnering with Colombia to create conscientious progress” Integral risk management 8
Slide 9: Looking into 2025 our strategy will focus on six corporate priorities
Looking into 2025 our strategy will focus on six corporate priorities Customer experience Financial diversification Synergies and efficiencies Digital transformation and innovation Corporate culture Sustainability 9
Slide 10: A leading financial conglomerate in Colombia
A leading financial conglomerate in Colombia Figures as December 31st, 2024 Market Share Complete suite of banking and non-banking products offered ▪ 25.3% in gross loans ▪ 28.1% in corporate lending ▪ 25.2% in deposits ▪ 28.9% in medium enterprises ▪ 27.4% in commercial loans ▪ 43.5% in payroll len
Slide 11: Customer-centric digital transformation strategy
With a focus on innovation, leveraged by a customer-centric digital transformation strategy Channels Customer- centric strategy Ecosystems Accompany our customer’s journey with financial and Digital Sales (# of products) 52%1 digital sales ratio Omnichannel non-financial products experience Centrali
Slide 12: Merging digital innovation and social impact
Merging digital innovation and social impact Features and benefits +3clients ,5 M Free and instant interoperable transfers to any other bank or wallet Remittances reception Instant and free to the receptor from 45 countries Interoperable NFC and QR Payroll reception payments for individuals and With
Slide 13: Visible impacts on the environment and social value creation (1/3)
With visible impacts on the environment and social value creation (1/3) 65 score 78 score 80 score 49 score +16 pts vs 2023 Top 15% Top 10% Sustainable loans reached Social $23,1 trillion COP Solutions: water, energy, food, communication ↓ Employees Business plan for Environment +70,000 +21.000 peop
Slide 14: Visible impacts on the environment and social value creation (2/3)
With visible impacts on the environment and social value creation (2/3) Environmental Our entities are committed to climate change: they all Carbon Footprint – Grupo Aval report under the TCFD Framework. (t CO2) 599,2 Scope 1 Scope 2 Scope 3 In the COP 16 we participated in Banco de Occidente 4,35 3
Slide 15: Visible impacts on the environment and social value creation (3/3)
With visible impacts on the environment and social value creation (3/3) Governance ESG AWARDS AND RECOGNITIONS Board of Directors’ POLICIES: Committees: • Sustainable Policy. • Grupo Aval - Included in the list of 25 leading companies in sustainability. • ESG • Human Rights Policy. • IT • Board of D
Slide 16: Encompassed under a strong and diverse governance structure
Encompassed under a strong and diverse governance structure On March 20, 2024 the members of the Board of Changes in our executive teams Directors for the 2024 – 2025 period were appointed by our General Shareholders’ Meeting ✓ We are in the process of renewing and strengthening the management of ou
Slide 17: A diversified loan portfolio and deposits base
With a diversified loan portfolio and deposits base Figures inen Cifras Ps.billones Trillionde pesos FY25 Loan growth guidance: Gross loans 10.0% area Gross loans Consumer loans Commercial loans 9.0% area 199.4 Retail loans 11.0% area 185.8 188.6 193.2 0.3 194.5 0.3 0.3 18.5 18.9 19.7 0.0 20.6 0.0 2
Slide 18: Recovering NIM components across segments
Recovering NIM components across segments 4.1% 4.3% 4.3% 4.2% 4.4% 3.9% 3.9% FY23 FY24 FY25 Guidance 3.4% 3.4% 2.7% 2.8% Consolidated 2.8% NIM 3.4% 3.4% 4.15% area 0.2% NIM on loans 4.0% 4.3% 4.60% area -0.2% -2.6% NIM on 1.2% 0.0% N.D. investments 4Q23 1Q24 2Q24 3Q24 4Q24 5.0% 5.1% 5.0% 4.9% 5.0% B
Slide 19: On the back of a recovery in NIM on retail loans
On the back of a recovery in NIM on retail loans 5.6% 5.3% 5.1% 4.9% FY23 FY24 Consolidated 4.3% NIM on 3.9% 3.6% commercial loans 4.0% 3.9% NIM on retail loans 4.2% 5.2% 3.7% 3.5% 3.4% 4Q23 1Q24 2Q24 3Q24 4Q24 6.3% 6.0% 5.7% 5.6% Banking segment 5.2% FY23 FY24 NIM on 4.8% 4.3% 4.9% commercial loans
Slide 20: Favorable asset quality trends in the loan portfolio
And favorable asset quality trends in the loan portfolio PDLS +30 & PDLS +90 Asset quality measured by stages Cost of risk, net Stage 1 Stage 2 Stage 3 30 PDLs 90 PDLs Coverage stage 2 & stage 3 37.9% 38.0% 37.4% 36.5% 35.4% 6.8% 7.0% 7.2% 7.2% 6.7% 100.0% Gross loans 4.9% 5.2% 4.8% 5.0% 4.8% 35.0%
Slide 21: Recovery of risk adjusted NIM on loans
Reflected on a recovery of risk adjusted NIM on loans Grupo Aval Banking segment 3.1% 2.9% 2.9% 2.9% 3.0% 2.7% 2.6% 2.7% 2.2% 2.3% 2.3% 2.1% 2.2% 2.1% 1.5% 1.9% 1.8% 1.9% 1.4% 1.8% 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 FY23: 1.7% | FY24: 2.1% | FY25 Guidance: 2.6% area FY23: 2.6% | FY24:
Slide 22: OPEX growing below inflation and minimum wage metrics
OPEX growing below inflation and minimum wage metrics Figures in Ps. Billions Total other expenses Cost to assets (1) ∆ FY24 vs FY23: 3.7% FY23: 2.8% | FY24: 2.7% | FY25 Guidance: 2.75% area 2,377.9 2,177.0 2,114.4 2,094.6 2,064.8 187.5 167.4 172.6 176.6 2.9% 2.9% 176.0 2.8% 2.7% 2.6% 1,262.4 1,182.
Slide 23: Diversified revenues from non-banking fees (1/3)
With diversified revenues from non-banking fees and non-financial sector income (1 I 3) Figures in Ps. Billions Gross fee income Non- financial sector ∆ FY24 vs FY23: 6.0% ∆ FY24 vs FY23: -23.0% 797 823 1,127 1,153 1,147 1,190 622 509 1,067 8 523 44 46 46 17 23 46 46 532 22 290 292 311 9 30 205 282
Slide 24: Diversified revenues: Porvenir (2/3)
With diversified revenues from non-banking fees and non-financial sector income (2 I 3) Figures in Ps. Trillion; at December 31, 2024 AUMs evolution Porvenir 15.8% 0.5% 234.6 235.8 203.6 215.5 222.0 6.8 5.9 6.1 6.2 5.8 11.6 10.8 12.2 Assets under management 9.3 13.3 3% 216.8 218.2 188.6 196.3 203.8
Slide 25: Diversified revenues: Trust & fiduciary services (3/3)
With diversified revenues from non-banking fees and non-financial sector income (3 I 3) Figures in Ps. Trillion; at December 31, 2024 AUMs evolution Trust & fiduciary management services -1.6% -3.1% 188.4 189.6 186.6 191.4 185.5 26.0 26.2 22.2 22.9 19.4 27.5 27.0 26.4 25.8 25.5 Assets under manageme
Slide 26: Profitability has recovered on the back of key business metrics
Profitability has recovered on the back of key business metrics Figures in Ps. Billion Net income attributable to controlling interest 1,730 Continuing operations Discontinued operations FY 2023 FY 2024 1,098 675 408 106 30 425 416 166 83 204 281 632 569 378 65 114 739 1,015 310 -330 -641 1Q22 2Q22
Slide 27: Supported on a sound capital structure
Supported on a sound capital structure 18.6% 18.8% 17.6% 18.0% 17.4% 3.1% 2.9% 2.7% 2.7% 2.6% Ps 150 billion of subordinated Separate basis US$ 175 million of subordinated Ps 250 billion of subordinated bonds (Tier II) issued during May-24 bonds (Tier II) issued during Oct-23 bonds (Tier II) issued
Slide 28: Grupo Aval's debt profile and total assets
Grupo Aval’s debt profile and total assets (combined figures)* Asset composition (December 31, 2024) Maturity shedule of our combined gross debt Figures in Ps. Billion Cash and equivalents 586 Fixed income investments 139 4,409 Investments in AT1 instruments 2,304 Loans to related parties 1,390 Subt
Slide 29: Investor Relations contacts
Investor Relations contacts Investorrelations@grupoaval.com Nicolás Noreña Trujillo Sénior Manager of Strategic Planning & IR Tel: (601) 7433222 x 23400 nnorena@grupoaval.com Simón Franky Director of Financial Planning & IR Tel: (601) 7433222 x 23351 sfranky@grupoaval.com v
Slide 30: Consolidated Financial Statements (1|2)
Grupo Aval Acciones y Valores S.A. – Consolidated Financial Statements (1 | 2) Figures in Ps. Billions ∆ Consolidated Statement of Financial Position 2Q23 4Q23 1Q24 2Q24 3Q24 4Q24 4Q24 vs. 4Q24 vs. 4Q23 3Q24 Cash and cash equivalents 19,195.70 18,597.86 18,568.30 19,296.30 19,151.92 16,998.86 -8.60%
Slide 31: Consolidated Financial Statements (2|2)
Grupo Aval Acciones y Valores S.A. – Consolidated Financial Statements (2 | 2) Figures in Ps. Billions Δ Δ Consolidated Statement of income 2023 2024 4Q23 3Q24 4Q24 4Q24 vs. 4Q24 vs. 2024 vs. 2023 3Q24 4Q23 Total interest income 28,919.40 28,181.93 -2.55% 7,421.89 6,873.96 6,832.90 -0.60% -7.94% Tot