Grupo Aval Acciones Y Valores Sa · BVC:GRUPOAVAL
Grupo Aval Acciones Y Valores Sa — FY2019 Earnings Presentation
23 slides from Grupo Aval Acciones Y Valores Sa's earnings presentation, Mar 19, 2020
Slide 1: Report of 4Q2019 and FY 2019 consolidated results
Report of 4Q2019 and FY 2019 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. PDLs 90+ defined as loans more than 90 days past due. Net Interest Margin includes net interest
Slide 3: Debt service coverage and leverage ratios
Debt service coverage and leverage ratios 4Q18 3Q19 4Q19 D 4Q19 vs. 3Q19 4Q19 vs. 4Q18 As of December 31 st , 2019 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 1.14x
Slide 4: IFRS 4Q19 and FY 2019 Consolidated Earnings Results
1 IFRS 4Q19 and FY 2019 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 .. 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
Slide 6: Consolidated key results for the year
3 Consolidated key results for the year Gross loans e xcludes interbank and overnight funds. Tangible Equity 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. N
Slide 7: Key results per region for the year
4 Key results per region for the year 70% of Assets 30% of Assets ( 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 715 . 1 bn for 4 Q 19 corresponds to the Ps 4
Slide 8: Macroeconomic context - Colombia (1|3)
5 GDP Growth (%) Inflation (%) GDP Growth Expectations (%) Source: Banco de la República de Colombia and DANE. Source: Bloomberg Consensus Source: DANE. Seasonally adjusted , constant prices of 2015 GDP Source: Bloomberg Consensus 6.1 4.1 4.2 3.6 3.3 3.1 3.6 1.8 2.5 1.9 1.3 2.6 0.8 1.6 1.5 1.5 2.3 2
Slide 9: Macroeconomic context - Colombia (2|3)
6 Central Bank’s Monetary Policy Macroeconomic context – Colombia ( 2 | 3 ) Unemployment (%) Source : Banco de la República de Colombia . (1) End of period DTF rate (2) End of period 3 - month interbank (IBR) rate Source: Banco de la República de Colombia and DANE. GDP as of December 2019. GDP Seaso
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 1Q19 2Q19 3Q19 4Q19 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 3,174.8 3,205.7 3,477.5 3,277.1 Quarter Ave
Slide 11: Macroeconomic context - Central America
8 Macroeconomic context – Central America Inflation per Country Regional Exchange Rates (100 = 12/31/2017) Growth Outlook – Real GDP Central Bank’s Interest Rates Panamá Nicaragua Costa Rica Honduras Guatemala El Salvador Central America ( 1) (2.0%) 0.0% 2.0% 4.0% 6.0% Dec-17 Feb-18 Apr-18 Jun-18 Au
Slide 12: Digital transformation
9 Digital transformation (1) Includes 7,146 digital approval of mortgages in 2019. Strategy ▪ We are taking advantage of new digital technologies to improve customer experience, reach new customers, create new products and markets, and improve our efficiency ▪ We have launched a coordinated effort t
Slide 13: Assets and asset breakdown
10 65.0% 9.9% 1.8% Net loans and leases Fixed income investments Unconsolidated equity investments Other 65.0% 9.9% 1.8% 23.3% 4Q18 62.4% 10.5% 2.1% 25.0% 4Q19 Colombian operations , 69.8% Foreign (1) , 30.2% Colombian operations , 69.0% Foreign (1) , 31.0% Colombian operations , 70.3% Foreign (1) ,
Slide 14: Gross loans and breakdown
11 169.2 179.3 179.4 4Q18 3Q19 4Q19 4Q19 / 4Q18 = 6.0% 4Q19 / 3Q19 = 0.1% 4Q19 / 4Q18 = 5.7% 4Q19 / 3Q19 = 2.0% Growth excl. FX movement of Central American Operations 56.0% 55.3% 55.1% 32.8% 33.1% 33.4% 11.0% 11.4% 11.3% 0.3% 0.2% 0.2% Commercial Consumer Mortgages Microcredit 4.4% 7.9% 8.8% - 3.6%
Slide 15: Loan portfolio quality
12 3.29% 2.72% 2.30% 3.09% 2.49% 2.07% 4Q18 3Q19 4Q19 Impairment loss / Average loans Impairment loss, net / Average loans Loan portfolio quality Charge offs / Average 90+ PDLs Cost of Risk 4.25% 4.55% 4.36% 3.07% 3.26% 3.26% 4Q18 3Q19 4Q19 30 days PDLs / Total loans 90 days PDLs / Total loans 0.70x
Slide 16: Loan portfolio quality by loan type
13 Loan portfolio quality 4Q18 3Q19 4Q19 4Q18 3Q19 4Q19 Commercial 3.88% 4.26% 3.94% 3.42% 3.67% 3.58% Consumer 4.83% 4.87% 4.80% 2.66% 2.70% 2.76% Mortgages 4.13% 4.78% 4.84% 2.25% 2.71% 2.97% Microcredit 16.52% 17.36% 18.09% 12.30% 13.02% 13.60% Total loans 4.25% 4.55% 4.36% 3.07% 3.26% 3.26% 30 d
Slide 17: Funding
14 Funding Figures in Ps. Trillions 4Q18 3Q19 4Q19 Others 0.4% 0.2% 0.3% Time deposits 40.7% 43.8% 41.7% Checking accounts 24.2% 22.8% 24.2% Savings accounts 34.8% 33.2% 33.8% Total deposits 4Q19 / 4Q18 = 6.8% 4Q19 / 3Q19 = 0.8% 164.4 174.0 175.5 Deposit composition 4Q19 / 4Q18 = 6.5% 4Q19 / 3Q19 =
Slide 18: Capital
15 Capital Attributable Shareholders Equity Attributable Equity + Minority Interest Figures in Ps. Trillions Consolidated Capital Adequacy of our Banks (%) 4Q18 3Q19 4Q19 Minority interest 11.8 13.0 13.5 Attributable equity 17.8 19.3 19.9 4Q19 / 4Q18 = 12.8% 4Q19 / 3Q19 = 3.0% 29.6 32.4 33.3 17.8 19
Slide 19: Net interest margin
16 6.64% 6.35% 6.36% 4Q18 3Q19 4Q19 10.52% 10.37% 10.38% Avg. Yield on loans NIM – Net Interest Margin Net Interest Margin (1) Loans Interest Margin (2) Net Investments Margin (3) 4Q18 3Q19 4Q19 4Q19 / 4Q18 4Q19 / 3Q19 2.8 3.0 3.0 8.5% 1.5% Net interest income(1) (trillions) (1) Net Interest Income
Slide 20: Fees and other operating income
17 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 L oss. (2) Includes share of profit of equity accounted investees, net of tax, and dividend income. Gross fee
Slide 21: Efficiency ratios
18 Efficiency ratios Cost to income efficiency ratio is calculated as total other expenses divided by net interest income plus net income from commissions and fees, net income from sales of goods and services, net trading income, net income from other financial instruments mandatory at FVTPL and tot
Slide 22: Profitability
19 850.7 743.2 715.1 4Q18 3Q19 4Q19 Net income attributable to controlling interest $38.2 $33.4 $32.1 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 23: Signature
20 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, 2020 GRUPO AVAL ACCIONES Y VALORES S.A. By: /s/ Jorge Adrián Rincón Plata Name: Jorge
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