Grupo Aval Acciones Y Valores Sa · BVC:GRUPOAVAL
Grupo Aval Acciones Y Valores Sa — Q1 2017 Earnings Presentation
24 slides from Grupo Aval Acciones Y Valores Sa's earnings presentation, Jun 2, 2017
Slide 1: Report of 1Q2017 consolidated results
0 Report of 1Q2017 consolidated results Information reported in Ps billions (1) and under IFRS (1) We refer to billions as thousands of millions.
Slide 2: Debt service coverage and leverage ratios
Debt service coverage and leverage ratios 1Q16 4Q16 1Q17 Δ 1Q17 vs. 4Q16 1Q17 vs. 1Q16 Double leverage (1) 1.25x 1.15x 1.17x 0.02 -0.08 Net debt / Core earnings (2)(3) 4.1x 2.8x 3.2x (4) 0.4 -0.9 Net debt / Cash dividends (2)(3) 4.8x 3.5x 3.5x 0.1 -1.3 Core Earnings / Interest Expense (2) 3.5x 4.1x
Slide 3: IFRS 1Q17 Consolidated Earnings Results
1 IFRS 1Q17 Consolidated Earnings Results
Slide 4: Grupo Aval regulatory status notice
2 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 (“SEC”) . A
Slide 5: Highlights (1/2)
3 Highlights (1/2) The following are the main highlights of our 1 Q 2017 results under IFRS : • Attributable net income for the quarter was Ps 587 . 0 billion or 26 pesos per share, 25 . 8 % higher than the 1 Q 2016 result . On a consolidated basis we paid Ps 109 . 3 billion in equity tax ( Ps 73 .
Slide 6: Highlights (2/2)
4 Highlights (2/2) • Our 30 day PDLs and NPLs deteriorated by 60 bps and 20 bps respectively during the quarter, primarily driven by our exposure to Electricaribe (approx . USD 185 million) ; Electricaribe accounted for 56 pbs of deterioration in the Commercial Loan PDL ratio and 44 bps in the Comme
Slide 7: Macroeconomic context – Colombia (1/3)
5 GDP Growth Expectations (%) Source: Bloomberg Consensus Source : DANE. Unemployment (%) Current Account (% of GDP, quarterly) Source : Banrep and DANE .. Macroeconomic context – Colombia (1/3) 10.4% 10.2% 9.7% 8.9% 10.1% 9.7% 9.6% 8.4% 8.7% 8.6% 8.7% 2012 2013 2014 2015 2016 2017 Unemployment as o
Slide 8: Macroeconomic context – Colombia (2/3)
6 1.1% 4.66% 6.25% 0% 3% 5% 8% 10% 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 may- 17 Real GDP growth Inflation Colombian Central Bank's Interest rate Inflation (%) Source: Banrep Source : Banrep . (1) End of period DTF rate (2) End of period 3 - month interbank (IBR) rate Source: Banrep and DANE
Slide 9: Macroeconomic context – Colombia (3/3)
7 Source: Bloomberg Source: Bloomberg. ( 100=Jan 31, 2016) Colombian Peso Exchange Rate COP vs Emerging markets’ currencies Colombian Peso vs WTI US$/barrel Macroeconomic context – Colombia (3/3) 1Q16 4Q16 1Q17 1Q17 vs. 1Q161Q17 vs. 4Q16 Average 3,263.493,016.072,924.26 -10.39% -3.04% End of Period
Slide 10: Macroeconomic context – Central America (1/2)
8 Macroeconomic context – Central America (1/2) Source: IMF; (*) Average growth of all the Central American countries Real GDP CAGR Evolution Source: SECMCA, last twelve months as of December 2016 Oil & gas imports / Total imports (%) Source: SECMCA Central Banks’ Monetary Policies 2.50% 3.00% 5.50%
Slide 11: Macroeconomic context – Central America (2/2)
9 Macroeconomic context – Central America (2/2) Illegal Migrants in USA (% Total Origin Country Pop) Total Illegal Migrants (thousands) Total Migrants in USA (thousands) Total Remittances ($MM) Remittances / Migrant Guatemala 4.5% 723 916 5,962 6,511 Honduras 4.2% 337 588 3,195 5,431 El Salvador 7.6
Slide 12: Assets
10 Assets Assets Breakdown Total Assets Figures in Ps. Trillions (1) Foreign operations reflect Central American operations. (2) Net loans and leases include interbank and overnight funds. 214.9 224.1 227.1 1Q16 4Q16 1Q17 1Q17 / 1Q16 = 5.7% 1Q17 / 4Q16 = 1.4% 1Q17 / 1Q16 = 6.9% 1Q17 / 4Q16 = 2.5% Gr
Slide 13: Loans
11 Loans Gross loans Gross loans Breakdown Figures in Ps. Trillions – Excluding interbank and overnight funds % Growth excluding FX movement of Central American Operations 141.0 151.6 150.6 1Q16 4Q16 1Q17 1Q17 / 1Q16 = 6.8% 1Q17 / 4Q16 = - 0.7% 1Q17 / 1Q16 = 8.0% 1Q17 / 4Q16 = 0.4% Growth excl. FX m
Slide 14: Loan portfolio quality
12 Loan portfolio quality 0.9x 0.9x 0.8x 1Q16 4Q16 1Q17 Charge offs / Average NPLs 2.7% 2.8% 2.9% 1.5x 1.4x 1.3x 0.9x 1.0x 0.8x 1Q16 4Q16 1Q17 Allowances / NPLs Allowance / 30+ PDLs Allowance / Gross loans 3.0% 3.0% 3.6% 1.8% 2.0% 2.2% 1Q16 4Q16 1Q17 30 days PDLs / Total loans NPLs / Total loans 2.0
Slide 15: Loan portfolio quality by loan type
13 Loan portfolio quality 1Q16 4Q16 1Q17 1Q16 4Q16 1Q17 Commercial 2.3% 2.1% 2.9% 1.7% 1.8% 2.2% Consumer 4.3% 4.4% 4.8% 2.1% 2.3% 2.3% Mortgages 3.2% 3.1% 3.4% 1.7% 1.7% 1.7% Microcredit 12.1% 14.1% 14.5% 7.8% 9.4% 10.0% Total loans 3.0% 3.0% 3.6% 1.8% 2.0% 2.2% Past due loans (1) Non-performing lo
Slide 16: Funding
14 Funding Figures in Ps. Trillions 1Q16 4Q16 1Q17 Others 0.3% 0.2% 0.4% Time deposits 39.1% 40.3% 42.4% Checking accounts 24.0% 24.3% 22.9% Savings accounts 36.7% 35.1% 34.4% Total deposits 1Q17 / 1Q16 = 7.2% 1Q17 / 4Q16 = 2.0% 136.9 143.9 146.7 Deposit composition 1Q17 / 1Q16 = 8.3% 1Q17 / 4Q16 =
Slide 17: Capital
15 Capital Attributable Shareholders Equity Attributable Equity + Minority Interest Figures in Ps. Trillions Consolidated Capital Adequacy of our Banks (%) 1Q16 4Q16 1Q17 Minority interest 8.5 9.1 8.8 Attributable equity 14.4 15.6 14.9 1Q17 / 1Q16 = 3.6% 1Q17 / 4Q16 = - 3.9% 22.9 24.7 23.7 14.4 15.6
Slide 18: NIM – Net Interest Margin (1/3)
16 NIM – Net Interest Margin (1/3) Composition of Interest Earning Assets 99.6% 99.1% 98.8% 0.4% 0.9% 1.2% 1Q16 4Q16 1Q17 Financial Sector Non-Financial Sector + HoldCo Composition of funding 94.9% 94.9% 95.1% 5.1% 5.1% 4.9% 1Q16 4Q16 1Q17 Financial Sector Non-Financial Sector + HoldCo Calculated as
Slide 19: NIM – Net Interest Margin (2/3)
17 3.9% 4.8% 4.5% 6.8% 8.0% 6.9% 4.1% 5.0% 4.6% 1Q16 4Q16 1Q17 10.9% 11.9% 11.6% 10.9% 11.7% 11.7% 10.0% 11.0% 12.0% 1Q16 4Q16 1Q17 NIM – Net Interest Margin (2/3) Average Yield on Loans Average Cost of Funds Average Spread (Yield on Loans – Cost of Funds) 7.0% 7.1% 7.2% 6.9% 6.7% 7.1% 6.0% 6.5% 7.0
Slide 20: NIM – Net Interest Margin (3/3)
18 6.9% 7.0% 7.1% 6.6% 6.4% 6.8% 1Q16 4Q16 1Q17 NIM – Net Interest Margin (3/3) Net Interest Margin (1) Loans Interest Margin (2) Net Investments Margin (3) 5.9% 5.9% 6.1% 5.6% 5.5% 5.9% 1Q16 4Q16 1Q17 1.2% - 0.4% 0.7% 1.0% 0.3% 0.6% 1Q16 4Q16 1Q17 Financial Sector Consolidated 1Q16 4Q16 1Q17 1Q17 /
Slide 21: Fees and other operating income
19 Fees and other operating income Figures in Ps. Billions (1) Includes income from trading and hedging derivatives reflected as part of the net trading income on the Statement of Profit or Loss. (2) Includes equity method income, dividend income and other income . Other operating income 75.8% 71.0%
Slide 22: Efficiency ratio
20 Efficiency ratio 44.1% 52.2% 45.9% 1Q16 4Q16 1Q17 3.4% 3.8% 3.4% 1Q16 4Q16 1Q17 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 ( e
Slide 23: Profitability
21 466.4 458.4 587.0 1Q16 4Q16 1Q17 Net income attributable to controlling interest $20.9 $20.6 $26.3 EPS 22,281 22,281 22,281 Avg shares $29.0 645.3 Profitability (1) ROAA for each quarter is calculated as annualized Net Income divided by average of total assets . (2) ROAE for each quarter is calcu
Slide 24: Signature
22 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: June 1, 2017 GRUPO AVAL ACCIONES Y VALORES S.A. By: /s/ Jorge Adrián Rincón Plata Name: Jorge A
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