Grupo Aval Acciones Y Valores Sa · BVC:GRUPOAVAL
Grupo Aval Acciones Y Valores Sa — Q2 2019 Earnings Presentation
22 slides from Grupo Aval Acciones Y Valores Sa's earnings presentation, Aug 22, 2019
Slide 1: Report of 2Q2019 consolidated results
Report of 2Q2019 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: • Attributable net income for 2Q19 increased 19% versus 2Q18 and 23% between 1H19 and 1H18. • Return on average equity for the quarter rose to 18.3%. • Loan portfolio growth of 7% yoy (and 1.3% in the quarter) with faster growth in our retail portfolio than in our commerc
Slide 3: Debt service coverage and leverage ratios
Debt service coverage and leverage ratios 2Q18 1Q19 2Q19 D 2Q19 vs. 1Q19 2Q19 vs. 2Q18 As of June 30th, 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. Fina
Slide 4: IFRS 2Q19 Consolidated Earnings Results
1 IFRS 2Q19 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: Consolidated key results for the quarter
3 Consolidated key results for the quarter Gross loans e xcludes 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 Intangibl es. PDLs 90+ defined as loans more than 90 days past du
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 813 . 2 bn for 2 Q 19 corresponds
Slide 8: Macroeconomic context – Colombia (1/3)
5 1.0 2.0 3.0 4.0 5.0 6.0 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 2019E 2020E 3.1 3.2 GDP Growth Expectations (%) Source: Bloomberg Consensus Inflation Expectations (%) Macroeconomic context – Colombia (1/3)
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 4Q18 2Q19 Real GDP growth Inflation Colombian Central Bank's Interest rate 4.25% 3.79% 3.4% 10.4% 9.6% 9.1% 8.9% 9.2% 9.4% 9.7% 10.1% 11.2% 10.6% 9.9% 9.8% 10.0% 10.6% 10.8% 11.1% 2012 2013 2014 2015 2016 2017 2018 Jun-19
Slide 10: Macroeconomic context – Colombia (3/3)
7 (2.4) (3.0) (4.0) (3.6) (3.1) (2.7) (2.3) (1.8) (1.4) (1.2) (1.0) (1.0) (1.0) (1.0) (2.4) (2.2) (1.8) (1.5) (1.3) (1.2) (1.1) (1.1) (1.0) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Real fiscal deficit Projected fiscal deficit (Mar - 2019) Projected fiscal deficit (Apr -
Slide 11: Macroeconomic context – Central America
8 Macroeconomic context – Central America Growth Outlook – Real GDP Inflation per Country Central Banks’ Interest Rates Source: Bloomberg CR : Costa Rica, ES: El Salvador, GU: Guatemala, HO: Honduras, NI: Nicaragua, PA: Panamá Source: For year 2018, Central Banks, INEC Panamá, US Bureau of Economic
Slide 12: Assets and assets breakdown
9 67.5% 10.5% 1.7% Net loans and leases Fixed income investments Unconsolidated equity investments Other 67.5% 10.5% 1.7% 20.3% 2Q18 62.9% 10.2% 2.0% 24.9% 2Q19 Colombian operations , 70.6% Foreign (1) , 29.4% Colombian operations , 70.2% Foreign (1) , 29.8% Colombian operations , 70.5% Foreign (1)
Slide 13: Gross loans and loan breakdown
10 160.3 168.4 170.7 2Q18 1Q19 2Q19 2Q19 / 2Q18 = 6.5% 2Q19 / 1Q19 = 1.3% 2Q19 / 2Q18 = 3.7% 2Q19 / 1Q19 = 1.0% Growth excl. FX movement of Central American Operations 57.3% 55.7% 55.4% 32.1% 33.0% 33.2% 10.4% 11.1% 11.2% 0.3% 0.2% 0.2% Commercial Consumer Mortgages Microcredit 2.9% 10.4% 13.9% - 1.
Slide 14: Loan portfolio quality
11 2.16% 2.21% 2.46% 1.94% 2.03% 2.23% 2Q18 1Q19 2Q19 Impairment loss / Average loans Impairment loss, net / Average loans Loan portfolio quality Charge offs / Average 90+ PDLs Cost of Risk 4.35% 4.41% 4.52% 3.09% 3.05% 3.22% 2Q18 1Q19 2Q19 30 days PDLs / Total loans 90 days PDLs / Total loans 0.65x
Slide 15: Loan portfolio quality: past due loans
12 2Q18 3Q18 4Q18 1Q19 2Q19 4,491 4,960 5,166 5,188 5,143 1,236 957 927 988 1,309 (767) (751) (905) (1,034) (961) 4,960 5,166 5,188 5,143 5,491 Loan portfolio quality 2Q18 1Q19 2Q19 2Q18 1Q19 2Q19 Commercial 3.81% 4.04% 4.20% 3.28% 3.41% 3.62% Consumer 5.35% 4.89% 4.94% 3.00% 2.60% 2.69% Mortgages 3
Slide 16: Funding
13 Funding Figures in Ps. Trillions 2Q18 1Q19 2Q19 Others 0.3% 0.3% 0.3% Time deposits 42.0% 41.9% 43.2% Checking accounts 22.4% 23.1% 23.1% Savings accounts 35.3% 34.7% 33.4% Total deposits 2Q19 / 2Q18 = 9.2% 2Q19 / 1Q19 = 1.7% 152.0 163.3 166.0 Deposit composition 2Q19 / 2Q18 = 6.3% 2Q19 / 1Q19 =
Slide 17: Capital
14 Capital Attributable Shareholders Equity Attributable Equity + Minority Interest Figures in Ps. Trillions Consolidated Capital Adequacy of our Banks (%) 2Q18 1Q19 2Q19 Minority interest 9.4 11.7 12.3 Attributable equity 15.8 17.3 18.3 2Q19 / 2Q18 = 21.1% 2Q19 / 1Q19 = 5.4% 25.3 29.0 30.6 15.8 17.
Slide 18: Net interest margin
15 6.78% 6.35% 6.58% 2Q18 1Q19 2Q19 10.64% 10.15% 10.61% Avg. Yield on loans NIM – Net Interest Margin Net Interest Margin (1) Loans Interest Margin (2) Net Investments Margin (3) 2Q18 1Q19 2Q19 2Q19 / 2Q18 2Q19 / 1Q19 2.8 2.9 3.0 7.9% 2.4% Net interest income(1) (trillions) (1) Net Interest Income
Slide 19: Fees and other operating income
16 2Q18 1Q19 2Q19 Energy & gas 146 140 189 Infrastructure 209 504 494 Hotels 1 9 6 Agribusiness 1 1 0 Other -97 -79 -89 Total 259 575 600 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 th
Slide 20: Efficiency ratios
17 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 21: Profitability
18 681.5 762.9 813.2 2Q18 1Q19 2Q19 Net income attributable to controlling interest $30.6 $34.2 $36.5 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 22: Signature
19 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: August 22, 2019 GRUPO AVAL ACCIONES Y VALORES S.A. By: /s/ Jorge Adrián Rincón Plata Name: Jorg
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