Grupo Aval Acciones Y Valores Sa · BVC:GRUPOAVAL
Grupo Aval Acciones Y Valores Sa — Q1 2019 Earnings Presentation
22 slides from Grupo Aval Acciones Y Valores Sa's earnings presentation, May 23, 2019
Slide 1: Report of 1Q2019 consolidated results
AVAL USTED NYSE eam Report of 1Q2019 consolidated results Information reported in Ps billions) and under IFRS (2) We refer to billions as thousands of millions,
Slide 2: Key results of the quarter
Key results of the quarter: • An increase in net interest income (including net trading income from investment securities) of 8.8% between 1Q2019 and 1Q2018 • An increase in Net Interest Margin (5.7% for 1Q2019 vs 5.6% for 4Q2018 and 1Q2018) • An improvement in Cost of Risk (to 2.0% from 2.2% in 1Q2
Slide 3: Debt service coverage and leverage ratios
Debt service coverage and leverage ratios 1Q18 4Q18 1Q19 As of March 31st, 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 1.15x. Finally, we present an evolution
Slide 4: IFRS 1Q19 Consolidated Earnings Results
1 IFRS 1Q19 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: Attributable Net Income increased in 1Q2019 versus 1Q2018
3 Attributable Net Income increased by 28 % in 1 Q 2019 versus 1 Q 2018 . This increase resulted principally from : • An increase in net interest income (including net trading income from investment securities) of 8 . 8 % in the same period • An increase in Net Interest Margin ( 5 . 7 % for 1 Q 2019
Slide 7: Key results per region for the quarter
4 Key results per region for the quarter 70% of Assets 30% 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 762 . 9 bn for 1 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 2019E 2020E 3.2 3.3 GDP Growth Expectations (%) Source: Bloomberg Consensus Inflation Expectations (%) Macroeconomic context – Colombia (1/3) Source: Bloom
Slide 9: Macroeconomic context – Colombia (2/3)
6 0% 3% 5% 8% 10% 4T12 2T13 4T13 2T14 4T14 2T15 4T15 2T16 4T16 2T17 4T17 2T18 4T18 Apr-19 Crecimiento real PIB Inflación Tasa de intervención Banrep 4.25% 3.25% 2.3% Central Bank’s Monetary Policy Source: Banco de la República de Colombia. Urban unemployment defined as unemployment of 13 cities and
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
9 67.2% 10.3% 1.8% Net loans and leases Fixed income investments Unconsolidated equity investments Other 67.2% 10.3% 1.8% 20.6% 1Q18 63.8% 10.4% 2.1% 23.8% 1Q19 Colombian operations , 71.7% Foreign (1) , 28.3% Colombian operations , 69.8% Foreign (1) , 30.2% Colombian operations , 70.2% Foreign (1)
Slide 13: Gross loans
10 157.0 169.2 168.4 1Q18 4Q18 1Q19 1Q19 / 1Q18 = 7.3% 1Q19 / 4Q18 = - 0.5% 1Q19 / 1Q18 = 3.2% 1Q19 / 4Q18 = 0.2% Growth excl. FX movement of Central American Operations 58.0% 56.0% 55.7% 31.6% 32.8% 33.0% 10.1% 11.0% 11.1% 0.3% 0.3% 0.2% Commercial Consumer Mortgages Microcredit 2.9% 11.9% 17.7% -
Slide 14: Loan portfolio quality
11 2.33% 3.29% 2.21% 2.16% 3.09% 2.03% 1Q18 4Q18 1Q19 Impairment loss / Average loans Impairment loss (net of recoveries of charged-off assets) / Average loans Loan portfolio quality Charge offs / Average NPLs Impairment loss / Average loans Impairment loss , net / Average loans Cost of Risk 4.25% 4
Slide 15: Loan portfolio quality by loan type
12 Loan portfolio quality 1Q18 4Q18 1Q19 1Q18 4Q18 1Q19 Commercial 3.59% 3.88% 4.04% 2.97% 3.42% 3.41% Consumer 5.41% 4.83% 4.89% 2.82% 2.66% 2.60% Mortgages 4.10% 4.13% 4.58% 2.14% 2.25% 2.44% Microcredit 15.43% 16.52% 16.16% 11.02% 12.30% 11.89% Total loans 4.25% 4.25% 4.41% 2.86% 3.07% 3.05% 30 d
Slide 16: Funding
13 Funding Figures in Ps. Trillions 1Q18 4Q18 1Q19 Others 0.3% 0.4% 0.3% Time deposits 40.1% 40.7% 41.9% Checking accounts 22.7% 24.2% 23.1% Savings accounts 36.8% 34.8% 34.7% Total deposits 1Q19 / 1Q18 = 7.6% 1Q19 / 4Q18 = - 0.7% 151.8 164.4 163.3 Deposit composition 1Q19 / 1Q18 = 3.4% 1Q19 / 4Q18
Slide 17: Capital
14 Capital Attributable Shareholders Equity Attributable Equity + Minority Interest Figures in Ps. Trillions Consolidated Capital Adequacy of our Banks (%) 1Q18 4Q18 1Q19 Minority interest 9.2 11.8 11.7 Attributable equity 14.9 17.8 17.3 1Q19 / 1Q18 = 20.5% 1Q19 / 4Q18 = - 1.7% 24.1 29.6 29.0 14.9 1
Slide 18: Net Interest Margin
15 6.72% 6.64% 6.35% 1Q18 4Q18 1Q19 10.62% 10.52% 10.15% Avg. Yield on loans NIM – Net Interest Margin Net Interest Margin (1) Loans Interest Margin (2) Net Investments Margin (3) 1Q18 4Q18 1Q19 1Q19 / 1Q18 1Q19 / 4Q18 2.7 2.8 2.9 8.8% 4.4% Net interest income(1) (trillions) (1) Net Interest Income
Slide 19: Fees and other operating income
16 1Q18 4Q18 1Q19 Energy & gas 162 114 140 Infrastructure 77 1,178 504 Hotels 9 13 9 Agribusiness 3 -10 1 Other -46 -89 -79 Total 206 1,207 575 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
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
18 597.7 850.7 762.9 1Q18 4Q18 1Q19 Net income attributable to controlling interest $26.8 $38.2 $34.2 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: May 23, 2019 GRUPO AVAL ACCIONES Y VALORES S.A. By: /s/ Jorge Adrián Rincón Plata Name: Jorge A
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