Grupo Aval Acciones Y Valores Sa · BVC:GRUPOAVAL
Grupo Aval Acciones Y Valores Sa — Q3 2021 Earnings Presentation
22 slides from Grupo Aval Acciones Y Valores Sa's earnings presentation, Nov 19, 2021
Slide 1: Report of 3Q2021 consolidated results
Grupo AVAL el &e Report of 3Q2021 consolidated results Information reported in Ps billions) and under IFRS (1) We refer to billions as thousands of millions.
Slide 2: Debt service coverage and leverage ratios
Debt service coverage and leverage ratios 3Q20 2Q21 3Q21 D 3Q21 vs. 2Q21 3Q21 vs. 3Q20 As of September 30 th , 2021 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 1.18
Slide 3: 3Q21 Consolidated Earnings Results IFRS
1 3Q21 Consolidated Earnings Results IFRS
Slide 4: Disclaimer
2 Disclaimer Grupo Aval Acciones y Valores S . A . (“Grupo Aval”) is an issuer of securities in Colombia and in the United States .. As such, it is subject to compliance with securities regulation in Colombia and applicable U . S . securities regulation . Grupo Aval is also subject to the inspection
Slide 5: Consolidated key results for the quarter
3 Consolidated key results for the quarter Gross loans e xcludes interbank and overnight funds. PDLs 90+ defined as loans more than 90 days past due. Cost of Risk c alculated as Impairment loss on loans and other accounts receivable net of recoveries of charged - off assets divided by average gross
Slide 6: Key results: Colombia and Central America (Banco de Bogotá, BAC)
4 COP $tn 3Q20 2Q21 3Q21 3Q21 vs 3Q20 3Q21 vs 2Q21 3Q20 2Q21 3Q21 3Q21 vs 3Q20 3Q21 vs 2Q21 Gross Loans $ 131.8 $ 134.7 $ 136.8 3.8% 1.5% $ 78.3 $ 79.1 $ 82.2 5.1% 3.9% Deposits $ 132.6 $ 136.0 $ 133.4 0.6% -1.9% $ 84.5 $ 89.7 $ 91.8 8.6% 2.3% Deposits/Net Loans 1.06 x 1.07 x 1.03 x NS -0.04 x 1.10
Slide 7: Macroeconomic context - Colombia
5 -17% -7% 3% 13% Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Real GDP growth Inflation Colombian Central Bank's Interest rate 2.50% 4.58% 12.93% Macroeconomic context - Colombia ( 1 | 2 ) Source: Banco de la República de Colombia and DANE. Source: DANE. Seasonally adjusted, constant prices o f 2015 GDP Oil
Slide 8: Macroeconomic context - Colombia (2)
6 Macroeconomic context - Colombia ( 2 | 2 ) Source: Ministry of Finance. Projections start in 2021. Real and Projected Fiscal Deficit Fiscal Rule (% of GDP) Colombian Peso Exchange Rate Source: Banco de la República de Colombia. (4.0) (3.6) (3.1) (2.5) (7.8) (8.6) (7.0) (4.7) (3.8) (3.1) (2.8) (2.5
Slide 9: Macroeconomic context – Central America
7 - 7.1% - 17.9% - 4.1% - 1.5% - 9.0% - 7.9% - 2.0% 7.7% 12.0% 3.9% 5.5% 4.9% 9.0% 5.0% 4.6% 5.0% 3.5% 4.5% 4.4% 3.5% 3.5% 2020 2021E 2022E 90 100 110 120 130 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Colón Quetzal Lempira Córdoba TRM 117,1 99,1 108,1 100,1 103,4 (3%) (1%) 1% 3% 5% 7% Dec-18 Jun-19
Slide 10: BAC Spin-off
8 BAC Spin - off Pre - transaction Post - transaction Main Steps Filing to SFC for BHI listing International consent Filing to SFC for BAC Spin - off Bondholder assembly BHI/ NewCo BdeB / NewCo Aval Merger * MFG Spin - off BdeB and Aval Spin - off* BHI listing Expected closing 1Q22 Transaction Struc
Slide 11: BAC Spin-off – Transaction Rationale
9 BAC Spin - off – Transaction Rationale 01 02 03 04 05 06 Simplifies Grupo Aval and BdeB c orporate structure, resulting in a “cleaner” story for Grupo Aval, BdeB an d BAC for the market. Senior management teams with exclusive focus on their markets Provides flexibility to each company to execute t
Slide 12: Assets Breakdown
10 Net loans and leases Fixed income investments Unconsolidated equity investments Other Assets Assets Breakdown (%) Total Assets Exc. FX = Growth excluding FX movement of Central American Operations (1) Net loans and leases include interbank and overnight funds (2) Foreign operations reflect Centra
Slide 13: Gross loans
11 Loans and receivables Gross loans Gross loans Breakdown % Growth excluding FX movement of Central American Operations Exc. FX = Growth excluding FX movement of Central American Operations 210.0 213.8 219.0 3Q20 2Q21 3Q21 0.5 10.0 1.0 10.6 1.5 3.7 0.9 3.0 6.7 - 12.3 7.6 - 12.3 3.2 - 2.7 2.2 - 2.7
Slide 14: Loan portfolio quality
12 Loan portfolio quality Charge offs / Average 90+ PDLs Cost of Risk Quality Coverage 5.16% 4.76% 4.40% 3.21% 3.42% 3.10% 30 days PDLs / Gross loans 90 days PDLs / Gross loans 3.08% 2.21% 1.74% 2.91% 1.99% 1.51% Impairment loss / Average gross loans Impairment loss, net / Average gross loans 1.48x
Slide 15: Loan portfolio quality: days past due formation
13 Loan portfolio quality 30 days past due formation 90 days past due formation (1) (2) 30 days past due loans 90 days past due loans Loans and coverage by Stages (%) (1) Past Due Loans + 30 / Total Loans including interest accounts receivable (2) Past Due Loans + 90 / Total Loans including interest
Slide 16: Funding composition and deposits
14 282.5 289.7 295.6 3Q20 2Q21 3Q21 Deposits Banks and others Bonds issued Interbank borrowings Funding composition (%) 3Q20 2Q21 3Q21 8.4 76.2 8.3 77.9 9.7 76.8 5.1 10.4 3.4 10.3 3.0 10.4 Q/Q% = 2.0%; (Exc. Fx = 1.4%) Y/Y% = 4.6%; (Exc. Fx = 5.1%) 18.0% 15.8% 15.9% 3Q20 2Q21 3Q21 1.07x 1.10x 1.07x
Slide 17: Capital adequacy and equity
15 3Q20 B II 2Q21 B III 3Q21 B III 3Q20 B II 2Q21 B III 3Q21 B III 3Q20 B II 2Q21 B III 3Q21 B III 3Q20 B II 2Q21 B III 3Q21 B III Primary capital (Tier 1) 9.7 10.2 11.1 8.4 11.4 9.3 8.8 11.8 11.8 11.0 12.5 12.7 Solvency Ratio 12.7 12.5 13.5 10.5 13.7 11.7 10.4 13.5 13.5 12.3 13.2 13.3 20.8 21.5 22.
Slide 18: Net Interest Margin
16 5.08% 4.92% 4.93% 3Q20 2Q21 3Q21 2.37% 2.30% 2.95% Cost of funds NIM – Net Interest Margin Net Interest Margin (1) Loans Interest Margin (2) Net Investments Margin (3) Net Interest Income (1) (Trillions) (1) Net Interest Income and Net Interest Margin: Includes net interest income plus net tradin
Slide 19: Fees and other operating income
17 Fees and other operating income Gross fee income Other operating income Non - financial sector (1) (1) Net income from sales of goods and services (2) Reflects net NFS from Nexa BPO, Megalinea and Aportes en L ínea call - centers and other subsidiaries (2) (2) Exc. FX = Growth excluding FX moveme
Slide 20: Efficiency ratios
18 3.1% 3.2% 3.3% 3Q20 2Q21 3Q21 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 instrume
Slide 21: Profitability
19 Profitability Figures in Ps. Billions Net income attributable to controlling interest ROAA (1) ROAE (2) (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 attributable to Aval's shar
Slide 22: Signature
20 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 19, 2021 GRUPO AVAL ACCIONES Y VALORES S.A. By: /s/ Jorge Adrián Rincón Plata Name: Jo
Grupo Aval Acciones y Valores — Q3 2021 Earnings Presentation on 6ix