Grupo Aval Acciones Y Valores Sa · BVC:GRUPOAVAL
Grupo Aval Acciones Y Valores Sa — Q1 2020 Earnings Presentation
26 slides from Grupo Aval Acciones Y Valores Sa's earnings presentation, May 21, 2020
Slide 1: Report of 1Q2020 consolidated results
Report of 1Q2020 consolidated results Information reported in Ps billions (1) and under IFRS (1) We refer to billions as thousands of millions.
Slide 2: Key results of the quarter
Key results of the quarter: • 1Q 2020 was a quarter of contrasts marked by strong growth in January and February and by an abrupt deceleration during March due to the global pandemic and the oil war. As a result, GDP growth for the quarter was only 0.4% (seasonally adjusted) and devaluation rose to
Slide 3: Debt service coverage and leverage ratios
Debt service coverage and leverage ratios 1Q19 4Q19 1Q20 D 1Q20 vs. 4Q19 1Q20 vs. 1Q19 As of March 31 st , 2020 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 1.15x. F
Slide 4: IFRS 1Q20 Consolidated Earnings Results
1 IFRS 1Q20 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 quarter
3 Consolidated key results for the quarter Gross loans e xcludes interbank and overnight funds. PDLs 90+ defined as loans more than 90 days past due. Net Interest Margin includes net interest income plus net trading income from debt and equity investments at FVTPL divided by total average interest -
Slide 7: Key results by Colombia and Central America
4 1Q19 4Q19 1Q20 1Q20 vs 1Q19 1Q20 vs 4Q19 1Q19 4Q19 1Q20 1Q20 vs 1Q19 1Q20 vs 4Q19 Gross Loans $ 117.4 $ 124.2 $ 131.4 11.9% 5.8% $ 51.0 $ 55.2 $ 69.3 35.7% 25.4% Deposits $ 113.7 $ 119.2 $ 131.8 16.0% 10.6% $ 49.6 $ 56.3 $ 71.4 44.0% 26.9% Deposits/Net Loans 1.01 x 1.00 x 1.05 x 0.04 x 0.04 x 0.96
Slide 8: Covid-Response: Types of relief offered to customers
5 Covid - 19 Response: As of May 15, 2020 Types of Relief offered to customers Risk management Care of employees and support of suppliers Contributions in Colombia and Central America Grupo Aval and its Subsidiaries have deployed actions that benefit more than 2.8MM people and we are looking continu
Slide 9: Types of relief offered to customers
6 Types of Relief offered to customers Costumers Wholesale banking Retail banking Fees waived on transfers to non - Aval banks originated in our digital channels and in our call centers 94,788 retirees have opened digital saving accounts Strengthening our digital channels • 24% monthly growth (3) in
Slide 10: Risk management
7 Risk management Identification of the most affected sectors and special monitoring of loans to those sectors and in general of higher risk loans . Daily m onitoring of our banks’ liquidity positions and Value at Risk of our Investment Portfolios Thus far no signs of significant deterioration in li
Slide 11: Care of employees and support of suppliers
8 Care of employees and support of suppliers Employees Approximately 94% of our administrative employees are working remotely Frequent communication with our employees reinforcing preventive actions Special sanitizing measures to protect employees working in offices and branches Suppliers Aval Banks
Slide 12: Contributions in Colombia and Central America
9 Contributions in Colombia and Central America • Mr. Luis Carlos Sarmiento Angulo , controlling shareholder of Grupo Aval, donated Ps 80 billion destined to acquire: 300,000 diagnostic tests Ventilators and medical equipment 400,000 food aid packages • Mr. Sarmiento Gutiérrez , CEO of Grupo Aval, s
Slide 13: Macroeconomic context - Colombia
10 0% 3% 5% 8% 10% Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Real GDP growth Inflation Colombian Central Bank's Interest rate 3.25% 3.51% 0.41% Source: Banco de la República de Colombia and DANE. Source: DANE. Seasonally adjusted , constant prices of 2015 GDP Macroeconomic context - Colombia ( 1 | 2
Slide 14: Macroeconomic context - Colombia
11 Macroeconomic context – Colombia ( 2 | 2 ) Source: Banco de la República de Colombia. Urban unemployment defined as unemployment of 13 cities and their metropolitan areas. * Last twelve months average from April 2019 to March 2020. 12.9% 13.0% Jan - 20 13.7% 12.8% Jan - 19 Source: Ministry of Fin
Slide 15: Macroeconomic context - Central America
12 Macroeconomic context – Central America Panamá Nicaragua Costa Rica Honduras Guatemala El Salvador Central America ( 1) Source: IMF (WEO April 2020); (1) Aggregate growth of all the Central American countries. Source: SECMCA. CR: Costa Rica, ES: El Salvador, GU: Guatemala, HO: Honduras, NI: Nicar
Slide 16: Total assets and assets breakdown
13 63.8% 10.4% 2.1% 23.8% 1Q19 60.9% 10.2% 1.9% 27.1% 1Q20 Colombian operations , 70.2% Foreign (1) , 29.8% Colombian operations , 70.3% Foreign (1) , 29.7% Colombian operations , 67.3% Foreign (1) , 32.7% 62.4% 10.5% 2.1% 25.0% 4Q19 Net loans and leases Fixed income investments Unconsolidated equit
Slide 17: Loans and receivables, gross loans breakdown
14 168.4 179.4 200.7 1Q19 4Q19 1Q20 1Q20 / 1Q19 = 19.1% 1Q20 / 4Q19 = 11.8% 1Q20 / 1Q19 = 9.9% 1Q20 / 4Q19 = 4.2% Growth excl. FX movement of Central American Operations 55.7% 55.1% 55.7% 33.0% 33.4% 32.5% 11.1% 11.3% 11.6% 0.2% 0.2% 0.2% Commercial Consumer Mortgages Microcredit 19.2% 17.3% 24.7% -
Slide 18: Loan portfolio quality
15 2.21% 2.30% 2.32% 2.03% 2.07% 2.15% 1Q19 4Q19 1Q20 Impairment loss / Average loans Impairment loss, net / Average loans Loan portfolio quality Charge offs / Average 90+ PDLs Cost of Risk 4.41% 4.36% 4.16% 3.05% 3.26% 3.14% 1Q19 4Q19 1Q20 30 days PDLs / Total loans 90 days PDLs / Total loans 0.80x
Slide 19: Loan portfolio quality by loan type
16 Loan portfolio quality 1Q19 4Q19 1Q20 1Q19 4Q19 1Q20 Commercial 4.04% 3.94% 4.11% 3.41% 3.58% 3.45% Consumer 4.89% 4.80% 4.11% 2.60% 2.76% 2.60% Mortgages 4.58% 4.84% 4.37% 2.44% 2.97% 2.98% Microcredit 16.16% 18.09% 15.15% 11.89% 13.60% 14.37% Total loans 4.41% 4.36% 4.16% 3.05% 3.26% 3.14% 30 d
Slide 20: Funding and deposits
17 0.99x 1.01x 1.04x 1Q19 4Q19 1Q20 Deposits / Net loans (%) 16.5% 17.2% 19.8% 1Q19 4Q19 1Q20 Cash / Deposits (%) 1Q19 4Q19 1Q20 Others 0.3% 0.3% 0.2% Time deposits 41.9% 41.7% 39.9% Checking accounts 23.1% 24.2% 26.1% Savings accounts 34.7% 33.8% 33.8% Total deposits 1Q20 / 1Q19 = 24.5% 1Q20 / 4Q19
Slide 21: Capital and capital adequacy
18 Capital Attributable Shareholders Equity Attributable Equity + Minority Interest Figures in Ps. Trillions Consolidated Capital Adequacy of our Banks (%) 1Q19 4Q19 1Q20 Minority interest 11.7 13.5 13.6 Attributable equity 17.3 19.9 19.5 1Q20 / 1Q19 = 13.7% 1Q20 / 4Q19 = - 1.0% 29.0 33.3 33.0 17.3
Slide 22: Net interest margin
19 6.35% 6.36% 6.06% 1Q19 4Q19 1Q20 10.15% 10.38% 9.88% Avg. Yield on loans NIM – Net Interest Margin Net Interest Margin (1) Loans Interest Margin (2) Net Investments Margin (3) 1Q19 4Q19 1Q20 1Q20 / 1Q19 1Q20 / 4Q19 2.9 3.0 2.7 -6.6% -10.1% Net interest income(1) (trillions) (1) Net Interest Incom
Slide 23: Fees and other operating income
20 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 24: Efficiency ratios
21 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 25: Profitability
22 762.9 715.1 700.2 1Q19 4Q19 1Q20 Net income attributable to controlling interest $34.2 $32.1 $31.4 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 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: May 20, 2020 GRUPO AVAL ACCIONES Y VALORES S.A. By: /s/ Jorge Adrián Rincón Plata Name: Jorge A
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