Grupo Aval Acciones Y Valores Sa · BVC:GRUPOAVAL
Grupo Aval Acciones Y Valores Sa — Q2 2018 Earnings Presentation
25 slides from Grupo Aval Acciones Y Valores Sa's earnings presentation, Aug 22, 2018
Slide 1: Report of 2Q2018 consolidated results
Report of 2Q2018 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: • Solid net income for the quarter of Ps. 30.6 pesos per share. • An active strategy to focus on profitable growth impacted the balance of the commercial loan portfolio. • Stronger capital position with a Tangible Equity Ratio of 7.7%. • Stable and resilient NIM of 5.6% d
Slide 3: Debt service coverage and leverage ratios
Debt service coverage and leverage ratios 2Q17 1Q18 2Q18 D 2Q18 vs. 1Q18 2Q18 vs. 2Q17 As of June 30th, 2018 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 1.16x. Fina
Slide 4: IFRS 2Q18 Consolidated Earnings Results
1 IFRS 2Q18 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 Share s and Issuers ( Registro Nacional de Valores y Emisores ) and the United States Securities and Exchange Commission (“
Slide 6: Key results of the quarter (summary bullets)
3 • An active strategy to focus on profitable growth impacted the balance of the commercial loan portfolio. • Stronger capital position with a Tangible Equity Ratio of 7.7%. • Improving 30 days PDLs in line with data observed in new vintages. • Expected improvement in 90 days PDL going forward as a
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 681 . 5 bn for 2 Q 18 corresponds
Slide 8: Macroeconomic context – Colombia (1/3)
5 1.0 2.0 3.0 4.0 5.0 6.0 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 2018E 2019E 2.5 3.0 GDP Growth Expectations (%) Source: Bloomberg Consensus Inflation Expectations (%) Macroeconomic context – Colombi
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 Crecimiento real PIB Inflación Tasa de intervención Banrep 4.25% 3.12% 2.5% 2% 4% 6% 8% Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Colombian Central Bank's Interest rate (EoP) DTF(1
Slide 10: Macroeconomic context – Colombia (3/3)
7 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 End of Period 2,392.5 2,598.4 2,598.7 3,086.8 3,149.5 3,000.6 2,919.0 2,880.1 3,000.7 2,885.6 3,050.4 2,936.7 2,984.0 2,780.5 2,930.8 Quarter Average 2,173.0 2,470.2 2,496.4 2,938.9 3,061.7 3,263.5 2,993.0 2,949.0 3,016.1 2
Slide 11: Macroeconomic context – Central America
8 4.0% 5.7% 4.6% 3.6% 3.5% 3.6% 2.3% Central America* Panama Nicaragua Costa Rica Guatemala Honduras El Salvador Macroeconomic context – Central America Growth Outlook – Real GDP CAGR ’16 – ’19E Inflation per Country Central Banks’ Interest Rates Source: Bloomberg CR : Costa Rica, ES: El Salvador, G
Slide 12: 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. 230.8 232.3 234.5 2Q17 1Q18 2Q18 2Q18 / 2Q17 = 1.6% 2Q18 / 1Q18 = 1.0% 2Q18 / 2Q17 = 2.8% 2Q18 / 1Q18 = - 0.5% G
Slide 13: Loans and receivables: gross loans breakdown
10 155.7 157.0 160.0 2Q17 1Q18 2Q18 2Q18 / 2Q17 = 2.8% 2Q18 / 1Q18 = 2.0% 2Q18 / 2Q17 = 4.0% 2Q18 / 1Q18 = 0.5% Growth excl. FX movement of Central American Operations 58.8% 58.0% 57.2% 31.1% 31.6% 32.1% 9.9% 10.1% 10.5% 0.3% 0.3% 0.3% Commercial Consumer Mortgages Microcredit 0.1% 6.0% 8.7% 1.5% 0.
Slide 14: Loan portfolio quality
11 2.90% 2.33% 1.94% 2.73% 2.16% 1.72% 2Q17 1Q18 2Q18 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 3.75% 4
Slide 15: Loan portfolio quality by type
12 Loan portfolio quality 2Q17 1Q18 2Q18 2Q17 1Q18 2Q18 Commercial 3.00% 3.55% 3.63% 2.46% 2.92% 3.10% Consumer 5.17% 5.37% 5.21% 2.68% 2.79% 2.86% Mortgages 3.48% 4.09% 3.96% 1.87% 2.14% 2.14% Microcredit 15.39% 15.04% 13.58% 10.65% 10.61% 9.49% Total loans 3.75% 4.21% 4.20% 2.49% 2.82% 2.94% 30 da
Slide 16: Funding
13 Funding Figures in Ps. Trillions 2Q17 1Q18 2Q18 Others 0.3% 0.3% 0.3% Time deposits 43.2% 40.1% 42.0% Checking accounts 22.0% 22.7% 22.4% Savings accounts 34.5% 36.8% 35.3% Total deposits 2Q18 / 2Q17 = 1.2% 2Q18 / 1Q18 = 0.1% 150.1 151.8 152.0 Deposit composition 2Q18 / 2Q17 = 2.4% 2Q18 / 1Q18 =
Slide 17: Capital
14 Capital Attributable Shareholders Equity Attributable Equity + Minority Interest Figures in Ps. Trillions Consolidated Capital Adequacy of our Banks (%) 2Q17 1Q18 2Q18 Minority interest 9.2 9.2 9.4 Attributable equity 15.5 14.9 15.8 2Q18 / 2Q17 = 2.2% 2Q18 / 1Q18 = 4.8% 24.7 24.1 25.3 15.5 14.9 1
Slide 18: Consolidated NIM – Net Interest Margin (1/2)
15 7.2% 6.9% 6.8% 7.2% 6.9% 6.7% 6.0% 6.5% 7.0% 7.5% 2Q17 1Q18 2Q18 Financial Sector Consolidated NIM – Net Interest Margin (1/2) Average Yield on Loans Average Cost of Funds Average Spread (Yield on Loans – Cost of Funds) 11.5% 10.6% 10.3% 11.6% 10.6% 10.4% 9.0% 10.0% 11.0% 12.0% 2T17 1T18 2T18 4.2
Slide 19: NIM – Net Interest Margin (2/2)
16 NIM – Net Interest Margin (2/2) Net Interest Margin (1) Loans Interest Margin (2) Net Investments Margin (3) 2Q17 1Q18 2Q18 2Q18 / 2Q17 2Q18 / 1Q18 2.8 2.7 2.7 -3.5% 0.0% 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
17 73.2% 72.0% 73.9% 5.9% 5.9% 5.7% 17.5% 19.3% 17.5% 3.4% 2.8% 2.9% 2Q17 1Q18 2Q18 Banking fees Trust and portfolio management activities Pension fees Other 1,297.6 1,311.8 1,345.8 2Q18/2Q17=3.7% 2Q18/1Q18=2.6% 4.6% 1.9% 3.4% - 11.2% 2Q18/1Q18 2Q18/2Q17 5.3% 0.6% - 7.3% 4.5% 2Q18/1Q18 = 2.9% 2Q18/2
Slide 21: Efficiency ratio
18 Efficiency ratio 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 (excluding others). Operating expenses / Total Income Operating exp
Slide 22: Profitability
19 470.8 597.7 681.5 2Q17 1Q18 2Q18 Net income attributable to controlling interest $21.1 $26.8 $30.6 EPS $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 calculated as annualized Net Income at
Slide 23: Appendix
>>> Appendix AVAL
Slide 24: Basel III implementation in Colombia
21 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 0.4% 0.8% 1.1% 1.5% 0.4% 0.8% 1.1% 1.5% 0.3% 0.5% 0.8% 1.0% 4.5% 4.5% 4.1% 3.8% 3.4% 3.0% 9.0% 9.0% 9.6% 10.3% 10.9% 11.5% 2018 E 2019 E 2020 E 2021 E 2022 E 2023 E CET1 AT1 T2 Conservation Buffer (1) Systemic Risk Buffer(1)(2) Objective Basel III implementation in C
Slide 25: Signature
22 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 20, 2018 GRUPO AVAL ACCIONES Y VALORES S.A. By: /s/ Jorge Adrián Rincón Plata Name: Jorg
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