Grupo Aval Acciones Y Valores Sa · BVC:GRUPOAVAL
Grupo Aval Acciones Y Valores Sa — Q3 2018 Earnings Presentation
26 slides from Grupo Aval Acciones Y Valores Sa's earnings presentation, Nov 19, 2018
Slide 1: Report of 3Q2018 consolidated results
Report of 3Q2018 consolidated results Information reported in Ps billions (1) and under IFRS (1) We refer to billions as thousands of millions.
Slide 2: Ratio definitions (gross loans, tangible capital ratio, NIM)
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 investment securit
Slide 3: Debt service coverage and leverage ratios
Debt service coverage and leverage ratios 3Q17 2Q18 3Q18 D 3Q18 vs. 2Q18 3Q18 vs. 3Q17 As of September 30th, 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 1.16x.
Slide 4: IFRS 3Q18 Consolidated Earnings Results
1 IFRS 3Q18 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: 3Q18 highlights
3 • Solid net income for the quarter of Ps 783 billion (35.1 pesos per share), bringing the accumulated net income for the year to Ps 2,062 billion. Net income for the quarter increased by 14.9% versus the previous quarter and 78.7% versus 3Q17. Accumulated net income increased by 37.9% versus incom
Slide 7: Key results per region for the quarter
4 Key results per region for the quarter 71% of Assets 29% of Assets COP $ tn ( 1 ) Central America refers to Leasing Bogotá Panamá (LBP) operation expressed in Colombian Pesos, at the exchange rate of each period . ( 2 ) Attributable net income for Grupo Aval of Ps 782 . 7 bn for 3 Q 18 corresponds
Slide 8: Macroeconomic context – Colombia (1/3)
5 1.0 2.0 3.0 4.0 5.0 6.0 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 2018E 2019E 2.7 3.3 GDP Growth Expectations (%) Source: Bloomberg Consensus Inflation Expectations (%) Macroeconomic context – Colombia (1/3) Source: Bloomberg Consensus 2.0 2.5 3.0 3.5 4.0
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 Oct-18 Real GDP growth Inflation Colombian Central Bank's Interest rate 4.25% 3.33% 2.5% 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 Colombian Central Bank's Interest rat
Slide 10: Macroeconomic context – Colombia (3/3)
7 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 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 Quarter Average 2,173.0 2,470.2 2,496.4 2,938.9 3,061.7 3,263.5 2,993.0 2,94
Slide 11: Macroeconomic context – Central America
8 3.5% 5.8% - 0.9% 3.3% 3.3% 3.6% 2.4% Central America* Panama Nicaragua Costa Rica Guatemala Honduras El Salvador Macroeconomic context – Central America Growth Outlook – Real GDP CAGR ’17 – ’20E Inflation per Country Central Banks’ Interest Rates Source: Bloomberg CR : Costa Rica, ES: El Salvador,
Slide 12: Assets and asset breakdown
9 68.0% 9.6% 1.7% Net loans and leases Fixed income investments Unconsolidated equity investments Other 68.0% 9.6% 1.7% 20.7% 3Q17 65.5% 10.5% 1.9% 22.1% 3Q18 Colombian operations , 71.2% Foreign (1) , 28.8% Colombian operations , 70.6% Foreign (1) , 29.4% Colombian operations , 71.2% Foreign (1) ,
Slide 13: Gross loans and breakdown
10 155.4 160.3 161.8 3Q17 2Q18 3Q18 3Q18 / 3Q17 = 4.1% 3Q18 / 2Q18 = 0.9% 3Q18 / 3Q17 = 3.8% 3Q18 / 2Q18 = 0.5% Growth excl. FX movement of Central American Operations 58.4% 57.3% 56.6% 31.4% 32.1% 32.4% 9.9% 10.4% 10.7% 0.3% 0.3% 0.3% Commercial Consumer Mortgages Microcredit 0.9% 7.6% 11.8% 3.7% 0
Slide 14: Loan portfolio quality
11 2.81% 2.16% 2.52% 2.64% 1.94% 2.31% 3Q17 2Q18 3Q18 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 3.98% 4
Slide 15: Loan portfolio quality and past due formation
12 Loan portfolio quality 3Q17 2Q18 3Q18 3Q17 2Q18 3Q18 Commercial 3.39% 3.81% 4.09% 2.81% 3.28% 3.52% Consumer 5.07% 5.35% 5.17% 2.70% 3.00% 2.89% Mortgages 3.67% 3.98% 4.08% 1.96% 2.16% 2.20% Microcredit 15.18% 15.05% 15.29% 10.94% 11.04% 11.32% Total loans 3.98% 4.35% 4.47% 2.71% 3.09% 3.19% 30 d
Slide 16: Funding
13 Funding Figures in Ps. Trillions 3Q17 2Q18 3Q18 Others 0.3% 0.3% 0.4% Time deposits 42.8% 42.0% 43.3% Checking accounts 21.6% 22.4% 21.8% Savings accounts 35.2% 35.3% 34.5% Total deposits 3Q18 / 3Q17 = 4.3% 3Q18 / 2Q18 = 0.8% 146.9 152.0 153.2 Deposit composition 3Q18 / 3Q17 = 3.9% 3Q18 / 2Q18 =
Slide 17: Capital
14 Capital Attributable Shareholders Equity Attributable Equity + Minority Interest Figures in Ps. Trillions Consolidated Capital Adequacy of our Banks (%) 3Q17 2Q18 3Q18 Minority interest 9.3 9.4 11.0 Attributable equity 15.9 15.8 16.9 3Q18 / 3Q17 = 10.8% 3Q18 / 2Q18 = 10.4% 25.2 25.3 27.9 15.9 15.
Slide 18: NIM – Net Interest Margin (1/2)
15 7.2% 7.0% 7.0% 7.2% 6.9% 6.9% 12.1% 12.6% 12.8% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 12.5% 13.0% 13.5% 3Q17 2Q18 3Q18 Financial Sector Consolidated Non-Financial Sector + HoldCo NIM – Net Interest Margin (1/2) Average Yield on Loans Average Cost of
Slide 19: NIM – Net Interest Margin (2/2)
16 NIM – Net Interest Margin (2/2) Net Interest Margin (1) Loans Interest Margin (2) Net Investments Margin (3) 3Q17 2Q18 3Q18 3Q18 / 3Q17 3Q18 / 2Q18 2.7 2.8 2.8 2.1% 1.2% Net interest income(1) (trillions) (1) Net Interest Income and Net Interest Margin: Includes net interest income plus net tradi
Slide 20: Fees and other operating income
17 73.9% 73.9% 73.0% 5.7% 5.7% 5.8% 17.3% 17.5% 18.3% 3.1% 2.9% 2.9% 3Q17 2Q18 3Q18 Banking fees Trust and portfolio management activities Pension fees Other 1,310.8 1,345.8 1,336.1 3Q18/3Q17=1.9% 3Q18/2Q18= - 0.7% 0.8% 2.8% 7.6% - 3.6% 3Q18/2Q18 3Q18/3Q17 - 1.9% - 0.1% 3.8% - 0.3% 3Q18/2Q18 = - 2.4
Slide 21: Efficiency ratio
18 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 22: Profitability
19 437.9 681.5 782.7 3Q17 2Q18 3Q18 Net income attributable to controlling interest $19.7 $30.6 $35.1 EPS $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 calculated as annualized Net Income at
Slide 23: Appendix
>>> Appendix AVAL
Slide 24: Colombian tax reform summary
21 • Reduction of corporate taxes from 37% to 30% 1 and elimination of Renta Presuntiva (a tax imposed on companies based on their shareholders’ equity in absence of taxable income) currently at 3.5% by 2021. • Deducibility of financial transaction taxes and Industry and Commerce taxes (@ 50% until
Slide 25: Update on Aval's 4G infrastructure projects; IFRS 15 impact
22 Update on Aval’s 4G infrastructure projects; Impact on Corficolombiana s results of full adoption of IFRS 15 • Update : As of September, 2018 Corficolombiana had started construction of two 4 G road concessions : Pacifico 1 and Chirajara - Fundadores . Completion of the construction phase of th
Slide 26: Signature
23 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: November 16, 2018 GRUPO AVAL ACCIONES Y VALORES S.A. By: /s/ Jorge Adrián Rincón Plata Name: Jo
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