Grupo Aval Acciones Y Valores Sa · BVC:GRUPOAVAL
Grupo Aval Acciones Y Valores Sa — Q1 2018 Earnings Presentation
24 slides from Grupo Aval Acciones Y Valores Sa's earnings presentation, May 18, 2018
Slide 1: Report of 1Q2018 consolidated results
AVAL LisTeD NYSE [a Jia) Report of 1Q2018 consolidated results Information reported in Ps billions() and under IFRS (2) We refer to billions as thousands of milions.
Slide 2: 1Q2018 key highlights
• Slow loan growth continued during 1Q2018 across all loan categories, but mainly in corporate loans. It is expected that growth recovery will gain momentum in 2H2018 due to positive macro trends and less political and fiscal uncertainty. • The 1Q2018 Tangible Equity Ratio reflects the one-time adju
Slide 3: Debt service coverage and leverage ratios
Debt service coverage and leverage ratios 1Q17 4Q17 1Q18 ∆ 1Q18 vs. 4Q17 1Q18 vs. 1Q17 As of March 31st, 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 1.17x. Fin
Slide 4: IFRS 1Q18 Consolidated Earnings Results
1 IFRS 1Q18 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: 1Q2018 key highlights
3 • Slow loan growth continued during 1Q2018 across all loan categories, but mainly in corporate loans. It is expected that growth recovery will gain momentum in 2H2018 due to positive macro trends and less political and fiscal uncertainty. • The 1Q2018 Tangible Equity Ratio reflects the one - time
Slide 7: Key results per region for the quarter
4 Key results per region for the quarter 72% of Assets 28% of Assets COP $ tn ( 1 ) Central America refers to Leasing Bogotá Panamá operation expressed in Colombian Pesos, at the exchange rate of each period . ( 2 ) Attributable net income for Grupo Aval of Ps 597 . 7 bn for 2018 corresponds to the
Slide 8: IFRS Impact
5 IFRS 9 Impact Figures in Ps. Billions Impact on Allowance 128.3% 142.8% Allowance/Gross Loans Colombia 4.4% 4.9% 127.9% 237.6% Allowance/Gross Loans Central America 1.5% 2.8% 128.2% 154.8% Allowance/Gross Loans Consolidated 3.5% 4.3% Coverage Ratio (1) Impact on Attributable Shareholder’s Equity 1
Slide 9: Macroeconomic context – Colombia (1/3)
6 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 2018E 2019E 2.5 3.0 GDP Growth Expectations (%) Source: Bloomberg Consensus Inflation Expectations (%) Macroeconomic context – Colombia (1/3) Source: Bloom
Slide 10: Macroeconomic context – Colombia (2/3)
7 3.13% 4.25% 2.2% 0% 3% 5% 8% 10% 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 may-18 Real GDP growth Inflation Colombian Central Bank's Interest rate 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 Colombian Central Bank's Interest rate (EoP) DTF(
Slide 11: Macroeconomic context – Colombia (3/3)
8 (2.3) (2.2) (2.2) (1.9) (1.9) (1.8) (1.6) (1.3) (1.0) (1.0) (2.2) (2.4) (3.0) (4.0) (3.6) (3.1) (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 Fiscal deficit as defined per fiscal rule Current and projected fiscal deficit
Slide 12: Macroeconomic context – Central America
9 3.9% 5.6% 4.4% 3.8% 3.5% 3.8% 2.2% 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,
Slide 13: Assets
10 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. 227.1 236.5 232.3 1Q17 4Q17 1Q18 1Q18 / 1Q17 = 2.3% 1Q18 / 4Q17 = - 1.8% 1Q18 / 1Q17 = 3.3% 1Q18 / 4Q17 = 0.2%
Slide 14: Gross loans breakdown
11 150.6 159.1 157.0 1Q17 4Q17 1Q18 1Q18 / 1Q17 = 4.3% 1Q18 / 4Q17 = - 1.3% 1Q18 / 1Q17 = 5.3% 1Q18 / 4Q17 = 0.7% Growth excl. FX movement of Central American Operations 58.9% 57.9% 58.0% 31.1% 31.7% 31.6% 9.7% 10.2% 10.1% 0.3% 0.3% 0.3% Commercial Consumer Mortgages Microcredit 2.7% 6.0% 8.3% 4.3%
Slide 15: Loan portfolio quality
12 2.09% 2.86% 2.49% 1.95% 2.66% 2.32% 1Q17 4Q17 1Q18 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 3.58% 3
Slide 16: Loan portfolio quality
13 Loan portfolio quality 1Q17 4Q17 1Q18 1Q17 4Q17 1Q18 Commercial 2.94% 3.21% 3.59% 2.23% 2.83% 2.97% Consumer 4.77% 5.09% 5.41% 2.31% 2.77% 2.82% Mortgages 3.36% 3.81% 4.10% 1.68% 2.07% 2.14% Microcredit 14.46% 15.09% 15.43% 10.02% 10.63% 11.02% Total loans 3.58% 3.89% 4.25% 2.22% 2.75% 2.86% 30 d
Slide 17: Funding
14 Funding Figures in Ps. Trillions 1Q17 4Q17 1Q18 Others 0.4% 0.3% 0.3% Time deposits 42.4% 40.4% 40.1% Checking accounts 22.9% 23.3% 22.7% Savings accounts 34.4% 36.0% 36.8% Total deposits 1Q18 / 1Q17 = 3.4% 1Q18 / 4Q17 = - 2.0% 146.7 154.9 151.8 Deposit composition 1Q18 / 1Q17 = 4.5% 1Q18 / 4Q17
Slide 18: Capital
15 Capital Attributable Shareholders Equity Attributable Equity + Minority Interest Figures in Ps. Trillions Consolidated Capital Adequacy of our Banks (%) 1Q17 4Q17 1Q18 Minority interest 8.8 9.6 9.2 Attributable equity 14.9 16.3 14.9 1Q18 / 1Q17 = 1.7% 1Q18 / 4Q17 = - 6.8% 23.7 25.9 24.1 14.9 16.3
Slide 19: Net Interest Margin (1/2)
16 7.2% 7.2% 7.1% 7.1% 7.1% 7.0% 6.0% 6.5% 7.0% 7.5% 1Q17 4Q17 1Q18 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) 11.6% 11.0% 10.7% 11.7% 11.1% 10.8% 10.0% 11.0% 12.0% 1Q17 4Q17 1Q18 4.5%
Slide 20: Net Interest Margin (2/2)
17 NIM – Net Interest Margin (2/2) Net Interest Margin (1) Loans Interest Margin (2) Net Investments Margin ( 3 ) 1Q17 4Q17 1Q18 1Q18 / 1Q17 1Q18 / 4Q17 2.6 2.8 2.7 4.2% -0.9% Net interest income(1) (trillions) (1) Net Interest Income and Net Interest Margin: Includes net interest income plus net tr
Slide 21: Fees and other operating income
18 71.8% 72.8% 72.0% 6.0% 6.4% 5.9% 18.8% 17.6% 19.3% 3.5% 3.1% 2.8% 1Q17 4Q17 1Q18 Banking fees Trust and portfolio management activities Pension fees Other 1,281.2 1,312.5 1,311.8 1Q18/1Q17=2.4% 1Q18/4Q17= - 0.1% 2.7% 0.2% 5.3% - 15.6% 1Q18/4Q17 1Q18/1Q17 - 1.2% - 8.4% 9.5% - 9.6% 1Q18 / 1Q17 = 3.
Slide 22: Efficiency ratio
19 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 ( e xcluding others). Operating expenses / Total Income Operating e
Slide 23: Profitability
20 587.0 466.7 597.7 1Q17 4Q17 1Q18 Net income attributable to controlling interest $26.3 $20.9 $26.8 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 a
Slide 24: Signature
21 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 18, 2018 GRUPO AVAL ACCIONES Y VALORES S.A. By: /s/ Jorge Adrián Rincón Plata Name: Jorge A
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