Grupo Aval Acciones Y Valores Sa · BVC:GRUPOAVAL
Grupo Aval Acciones Y Valores Sa — Q3 2019 Earnings Presentation
22 slides from Grupo Aval Acciones Y Valores Sa's earnings presentation, Nov 21, 2019
Slide 1: Report of 3Q2019 consolidated results
Report of 3Q2019 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: • Accumulated attributable net income for the nine months ended September 2019 increased 12.5% versus the same period in 2018. • 3Q19 results were strong at Ps 743 billion, 33.4 pesos per share, after significant provisions for CRDS which impacted this attributable net in
Slide 3: Debt service coverage and leverage ratios
Debt service coverage and leverage ratios 3Q18 2Q19 3Q19 D 3Q19 vs. 2Q19 3Q19 vs. 3Q18 As of September 30 th , 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 1.14
Slide 4: IFRS 3Q19 Consolidated Earnings Results
1 IFRS 3Q19 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 69% of Assets 31% 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 743 . 2 bn for 3 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 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 2019E 2020E 3.1 3.0 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 4Q18 2Q19 Real GDP growth Inflation Colombian Central Bank's Interest rate 4.25% 3.86% 3.3% 10.4% 9.6% 9.1% 8.9% 9.2% 9.4% 9.7% 10.4% 11.2% 10.6% 9.9% 9.8% 10.0% 10.6% 10.8% 11.2% 2012 2013 2014 2015 2016 2017 2018 Sep-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: Total Assets and Assets Breakdown
9 65.5% 10.5% 1.9% Net loans and leases Fixed income investments Unconsolidated equity investments Other 65.5% 10.5% 1.9% 22.1% 3Q18 63.7% 10.4% 2.0% 23.8% 3Q19 Colombian operations , 71.2% Foreign (1) , 28.8% Colombian operations , 70.5% Foreign (1) , 29.5% Colombian operations , 69.0% Foreign (1)
Slide 13: Gross loans and loan breakdown
10 161.8 170.7 179.3 3Q18 2Q19 3Q19 3Q19 / 3Q18 = 10.8% 3Q19 / 2Q19 = 5.0% 3Q19 / 3Q18 = 5.5% 3Q19 / 2Q19 = 2.4% Growth excl. FX movement of Central American Operations 56.6% 55.4% 55.3% 32.4% 33.2% 33.1% 10.7% 11.2% 11.4% 0.3% 0.2% 0.2% Commercial Consumer Mortgages Microcredit 8.1% 13.0% 18.4% - 1
Slide 14: Loan portfolio quality
11 2.52% 2.46% 2.72% 2.31% 2.23% 2.49% 3Q18 2Q19 3Q19 Impairment loss / Average loans Impairment loss, net / Average loans Loan portfolio quality Charge offs / Average 90+ PDLs Cost of Risk 4.47% 4.52% 4.55% 3.19% 3.22% 3.26% 3Q18 2Q19 3Q19 30 days PDLs / Total loans 90 days PDLs / Total loans 0.59x
Slide 15: Loan portfolio quality by type and PDL formation
12 3Q18 4Q18 1Q19 2Q19 3Q19 4,960 5,166 5,188 5,143 5,491 957 927 988 1,309 1,247 (751) (905) (1,034) (961) (892) 5,166 5,188 5,143 5,491 5,846 Loan portfolio quality 3Q18 2Q19 3Q19 3Q18 2Q19 3Q19 Commercial 4.09% 4.20% 4.26% 3.52% 3.62% 3.67% Consumer 5.17% 4.94% 4.87% 2.89% 2.69% 2.70% Mortgages 4
Slide 16: Funding
13 Funding Figures in Ps. Trillions 3Q18 2Q19 3Q19 Others 0.4% 0.3% 0.2% Time deposits 43.3% 43.2% 43.8% Checking accounts 21.8% 23.1% 22.8% Savings accounts 34.5% 33.4% 33.2% Total deposits 3Q19 / 3Q18 = 13.6% 3Q19 / 2Q19 = 4.8% 153.2 166.0 174.0 Deposit composition 3Q19 / 3Q18 = 8.2% 3Q19 / 2Q19 =
Slide 17: Capital
14 Capital Attributable Shareholders Equity Attributable Equity + Minority Interest Figures in Ps. Trillions Consolidated Capital Adequacy of our Banks (%) 3Q18 2Q19 3Q19 Minority interest 11.0 12.3 13.0 Attributable equity 16.9 18.3 19.3 3Q19 / 3Q18 = 16.0% 3Q19 / 2Q19 = 5.8% 27.9 30.6 32.4 16.9 18
Slide 18: Net Interest Margin
15 6.78% 6.58% 6.35% 3Q18 2Q19 3Q19 10.62% 10.61% 10.37% Avg. Yield on loans NIM – Net Interest Margin Net Interest Margin (1) Loans Interest Margin (2) Net Investments Margin (3) 3Q18 2Q19 3Q19 3Q19 / 3Q18 3Q19 / 2Q19 2.8 3.0 3.0 6.6% 0.0% Net interest income(1) (trillions) (1) Net Interest Income
Slide 19: Fees and other operating income
16 3Q18 2Q19 3Q19 Energy & gas 165 189 193 Infrastructure 861 494 551 Hotels 14 6 8 Agribusiness 1 0 -1 Other -69 -89 -90 Total 972 600 661 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
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
18 782.7 813.2 743.2 3Q18 2Q19 3Q19 Net income attributable to controlling interest $35.1 $36.5 $33.4 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 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: November 21, 2019 GRUPO AVAL ACCIONES Y VALORES S.A. By: /s/ Jorge Adrián Rincón Plata Name: Jo
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