Grupo Aval Acciones Y Valores Sa · BVC:GRUPOAVAL
Grupo Aval Acciones Y Valores Sa — Q2 2017 Earnings Presentation
23 slides from Grupo Aval Acciones Y Valores Sa's earnings presentation, Sep 1, 2017
Slide 1: Report of 2Q2017 consolidated results
Report of 2Q2017 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 2Q16(4) 1Q17 2Q17 Δ 2Q17 vs. 1Q17 2Q17 vs. 2Q16 As of June 30 th , 2017 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 1.17x.
Slide 3: IFRS 2Q17 Consolidated Earnings Results
1 IFRS 2Q17 Consolidated Earnings Results
Slide 4: Grupo Aval regulatory and issuer 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”) . As
Slide 5: Highlights (1/2)
3 Highlights (1/2) The following are the main highlights of our 2 Q 2017 results under IFRS : • Contrary to our expectations, the Colombian economy did not reactivate in the first semester of this year and instead showed on ly marginal growth at 1.2% and 1.3% during the first two quarters, significa
Slide 6: Highlights (2/2)
4 Highlights (2/2) • Partly as a consequence of the growth slowdown, the second quarter was one in which our consolidated equity ratios improved. Our total equity to total assets ratio improved from 10.4% in March 31, 2017 to 10.7% in June 30, 2017 and our tangible capital r ati o improved from 7.4%
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) 10.0% 9.2% 9.2% 8.2% 8.9% 8.7% 9.6% 8.4% 8.7% 8.6% 8.7% 2012 2013 2014 2015 2016 2017 Unemployment as of J
Slide 8: Macroeconomic context – Colombia (2/3)
6 2% 4% 6% 8% Dec-12 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Aug-17 Colombian Central Bank's Interest rate (EoP) DTF(1) IBR(2) 5.55% 5.50% 5.06% 3.40% 5.50% 1.3% 0% 3% 5% 8% 10% 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 Real GDP growth Inflation Colombian Central Bank's Inter
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) 2Q16 1Q17 2Q17 2Q17 vs. 2Q162Q17 vs. 1Q17 Average 2,993.002,924.262,920.25 -2.43% -0.14% End of Period 2
Slide 10: Macroeconomic context – Central America
8 Macroeconomic context – Central America Source: IMF; (*) Average growth of all the Central American countries Real GDP CAGR Evolution Source: SECMCA, last twelve months as of May 2017 Oil & gas imports / Total imports (%) Source: SECMCA Central Banks’ Monetary Policies 4.1% 5.6% 4.7% 4.2% 3.8% 3.4
Slide 11: Assets
9 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. 215.7 227.1 230.8 2Q16 1Q17 2Q17 2Q17 / 2Q16 = 7.0% 2Q17 / 1Q17 = 1.6% 2Q17 / 2Q16 = 5.7% 2Q17 / 1Q17 = 0.0% Gro
Slide 12: Loans
10 Loans Gross loans Gross loans Breakdown Figures in Ps. Trillions – Excluding interbank and overnight funds % Growth excluding FX movement of Central American Operations 143.0 150.6 155.7 2Q16 1Q17 2Q17 2Q17 / 2Q16 = 8.9% 2Q17 / 1Q17 = 3.4% 2Q17 / 2Q16 = 7.6% 2Q17 / 1Q17 = 1.8% Growth excl. FX mov
Slide 13: Loan portfolio quality
11 Loan portfolio quality 1.0x 0.8x 0.7x 2Q16 1Q17 2Q17 Charge offs / Average NPLs 2.7% 2.9% 3.1% 1.5x 1.3x 1.3x 0.9x 0.8x 0.8x 2Q16 1Q17 2Q17 Allowances / NPLs Allowance / 30+ PDLs Allowance / Gross loans 2.9% 3.6% 3.8% 1.8% 2.2% 2.5% 2Q16 1Q17 2Q17 30 days PDLs / Total loans NPLs / Total loans 2.1
Slide 14: Loan portfolio quality
12 Loan portfolio quality 2Q16 1Q17 2Q17 2Q16 1Q17 2Q17 Commercial 2.2% 2.9% 3.0% 1.6% 2.2% 2.5% Consumer 4.4% 4.8% 5.2% 2.1% 2.3% 2.7% Mortgages 3.1% 3.4% 3.5% 1.7% 1.7% 1.9% Microcredit 12.6% 14.5% 15.4% 8.0% 10.0% 10.7% Total loans 2.9% 3.6% 3.8% 1.8% 2.2% 2.5% Past due loans (1) Non-performing l
Slide 15: Funding
13 Funding Figures in Ps. Trillions 2Q16 1Q17 2Q17 Others 0.3% 0.4% 0.3% Time deposits 40.5% 42.4% 43.2% Checking accounts 21.9% 22.9% 22.0% Savings accounts 37.3% 34.4% 34.5% Total deposits 2Q17 / 2Q16 = 9.6% 2Q17 / 1Q17 = 2.3% 137.0 146.7 150.1 Deposit composition 2Q17 / 2Q16 = 8.3% 2Q17 / 1Q17 =
Slide 16: Capital
14 Capital Attributable Shareholders Equity Attributable Equity + Minority Interest Figures in Ps. Trillions Consolidated Capital Adequacy of our Banks (%) 2Q16 1Q17 2Q17 Minority interest 8.7 8.8 9.2 Attributable equity 15.1 14.9 15.5 2Q17 / 2Q16 = 4.0% 2Q17 / 1Q17 = 4.3% 23.8 23.7 24.7 15.1 14.9 1
Slide 17: NIM – Net Interest Margin (1/3)
15 NIM – Net Interest Margin (1/3) Composition of Interest Earning Assets Composition of funding Calculated as composition of average balance for the period. Non - Financial Sector + HoldCo refers to companies from the non financial sector and the sum of Grupo Aval Acciones y Valores S.A. + 100% own
Slide 18: NIM – Net Interest Margin (2/3)
16 6.8% 7.2% 7.2% 6.8% 7.1% 7.2% 6.0% 6.5% 7.0% 7.5% 2Q16 1Q17 2Q17 Financial Sector Consolidated NIM – Net Interest Margin (2/3) Average Yield on Loans Average Cost of Funds Average Spread (Yield on Loans – Cost of Funds) 11.2% 11.6% 11.5% 11.3% 11.7% 11.6% 10.0% 11.0% 12.0% 2Q16 1Q17 2Q17 4.4% 4.5
Slide 19: NIM – Net Interest Margin (3/3)
17 NIM – Net Interest Margin (3/3) Net Interest Margin (1) Loans Interest Margin (2) Net Investments Margin (3) 2Q16 1Q17 2Q17 2Q17 / 2Q16 2Q17 / 1Q17 2.4 2.6 2.8 16.9% 5.5% Net interest income(1) (trillions) (1) Net Interest Income and Net Interest Margin: Includes net interest income plus net trad
Slide 20: Fees and other operating income
18 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 75.3% 71.8%
Slide 21: Efficiency ratio
19 Efficiency ratio 47.2% 45.9% 46.9% 2Q16 1Q17 2Q17 3.5% 3.4% 3.5% 2Q16 1Q17 2Q17 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 22: Profitability
20 601.1 587.0 470.8 2Q16 1Q17 2Q17 Net income attributable to controlling interest $27.0 $26.3 $21.1 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 23: Signature
21 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: September 1, 2017 GRUPO AVAL ACCIONES Y VALORES S.A. By: /s/ Jorge Adrián Rincón Plata Name: Jo
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