Grupo Aval Acciones Y Valores Sa · BVC:GRUPOAVAL

Grupo Aval Acciones Y Valores Sa — Q1 2024 Earnings Presentation

21 slides from Grupo Aval Acciones Y Valores Sa's earnings presentation, May 15, 2024

  1. Slide 1: 1Q24 Consolidated Earnings Results

    1Q24 Consolidated Earnings Results IFRS ADL no es empresa vigilada por la Superintendencia Financiera de Colombia

  2. Slide 2: Disclaimer

    Disclaimer Grupo Aval Acciones y Valores S.A. (“Grupo Aval”) is an issuer of securities in Colombia and in the United States (“SEC”). 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 an

  3. Slide 3: Consolidated key results for the quarter

    Consolidated key results for the quarter Balance Sheet Profitability Q/Q: 1.5% Q/Q: (49) bps • Gross loans reached 189 trillion pesos, a 1.5% Gross loans $188.6 Tn Net interest margin 3.4% growth versus 4Q23 and 2.2% growth versus Y/Y: 2.2% Y/Y: (34) bps 1Q23. Consolidated deposits reached 189 trill

  4. Slide 4: Macroeconomic context – Colombia (1 I 4)

    Macroeconomic context – Colombia (1 I 4) Real GDP growth (%) Inflation (%) Central Bank’s Monetary Policy (%) Market consensus Market consensus Market consensus average : average : median : FY 24: 1.2% Dic 24: 5.62% FY 24: 8.25% 18.7 Dec-22 Dec-23 13.12% Dec-22 13.0% 13.4 12.0% 12.2 11.2 8.1 11.75%

  5. Slide 5: Macroeconomic context – Colombia (2 I 4)

    Macroeconomic context – Colombia (2 I 4) Real GDP Growth - Key Sectors 130 (Average 2019 = 100) 120 115 Electricity 110 111 GDP 107 Manufacturing 100 90 86 Mining 85 Building 80 construction 70 60 Infrastructure 57 50 5 Source: DANE.

  6. Slide 6: Macroeconomic context – Colombia (3 I 4)

    Macroeconomic context – Colombia (3 I 4) Real GDP Growth – Key Components of Investment Gross domestic savings Demand-side GDP (% GDP) (% GDP) (December 2019 = 100) 130 120 120 Household consumption 110 110 GDP 21.3 21.2 106 Government 17.4 17.0 100 expenditure 16.3 16.1 14.4 19.0 19.0 13.1 13.5 90

  7. Slide 7: Macroeconomic context – Colombia (4 I 4)

    Macroeconomic context – Colombia (4 I 4) Consumer Spending (December 2019 = 100) Household Financial Burden* Unemployment (%) 35.0 25.0% 140 39 134 National Unemployment** 20.0% 30.0 38 38.1 14.4% 130 Nondurable 15.0% 124 Goods 12.9% 11.9% 10.9% 9.7% 122 Total 37 25.0 10.0% 122 Services 22.9 22.7 12

  8. Slide 8: ESG Highlights

    ESG Highlights Social Environmental "Misión La Guajira" project is a partnership between the Government, the communities and Grupo Aval Net Zero Banking Alliance: Achieving zero emissions in the credit portfolio through decarbonization by La Guajira is Colombia’s most vulnerable department with 2050

  9. Slide 9: Colombian Banking System – LTM Loan Growth

    Colombian Banking System – LTM Loan Growth (Unconsolidated results under Colombian IFRS) Gross Loans Market Share (%) 26.8% 27.2% 17.1% 28.0% 25.8% Commercial 26.5% 26.7% loans 13.0% 24.7% 25.4% 25.6% 14.6% 24.3% Consumer 23.7% 23.4% loans 5.3% 5.6% Aval Banks Gross loans 7.3% 14.1% 14.4% 13.5% 3.1%

  10. Slide 10: Colombian banking system - Loan portfolio quality

    Colombian banking system - Loan portfolio quality: 30 days PDLs / Gross loans (Unconsolidated results under Colombian IFRS) Gross Loans 6.0% System excluding Aval 5.5% 4.4% 4.7% 4.7% 4.6% Aval Banks 3.8% 3.9% Feb-21 Aug-21 Feb-22 Aug-22 Feb-23 Aug-23 Feb-24 Commercial Loans Consumer Loans Mortgages

  11. Slide 11: Assets and Gross Loans

    Assets and Gross Loans Figures in Ps. Trillions Total assets Y/Y%= 2.7% % Asset contribution Q/Q%= 1.9% 298.9 301.2 306.9 6.5 6.2 6.1 Cash and equivalents 19.3 18.6 18.6 36.2 12.1 40.4 13.4 43.0 14.0 Fixed income investments Net loans and leases 179.1 59.9 176.2 58.5 178.5 58.2 64.2 21.5 66.0 21.9 6

  12. Slide 12: Funding

    Funding Figures in Ps. Trillions Total funding Y/Y% = 2.8% Q/Q% = 3.1% Funding breakdown (%) 1Q23 4Q23 1Q24 248.4 247.5 255.3 Deposits 71.8% 73.5% 74.1% Banks and others (1) 13.6% 10.9% 10.2% Bonds issued 11.0% 9.5% 8.9% Interbank borrowings 3.5% 6.1% 6.7% 1Q23 4Q23 1Q24 Total deposits Y/Y% = 6.1% Q

  13. Slide 13: Capital

    Capital Figures in Ps. Trillions Attributable Equity + Minority Interest Attributable Shareholders Equity Y/Y% = 2.8% Y/Y% = 1.7% Q/Q% = -1.4% Q/Q% = -2.0% 30.2 31.5 31.1 14.1 14.7 14.6 16.2 16.8 16.5 16.2 16.8 16.5 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 Attributable equity Minority interest Total equity / A

  14. Slide 14: NIM – Net Interest Margin

    Net Interest Income (2) (Trillions) NIM – Net Interest Margin 1Q23 4Q23 1Q24 1Q24 / 1Q24 / 1Q23 4Q23 2.1 2.2 2.0 -7.4% -11.5% Banking segment Grupo Aval 5.6% 5.5% 5.2% 4.9% 4.9% 5.0% 5.0% 5.1% 4.5% 5.1% 4.9% 4.6% 4.2% 4.3% 4.1% 4.2% 4.0% 4.1% 4.9% 4.6% 4.3% 4.5% 4.2% 4.3% 4.4% 4.2% 3.9% 4.1% 3.7% 3.

  15. Slide 15: Loan portfolio quality (1 I 3)

    Loan portfolio quality (1 I 3) 30 days Past Due Loans / Gross loans Figures in Ps. Billions 90 days Past Due Loans / Gross loans Credit quality & Coverage ratios Commercial 4.8% 5.1% 4.5% 4.4% 4.5% 4.5% 5.9% 4.1% 4.2% 4.0% 5.3% 5.5% 4.9% 5.1% 4.6% 4.4% 4.2% 4.3% 4.3% 4.3% 4.0% 3.8% 4.0% 3.7% 3.6% 3.

  16. Slide 16: Loan portfolio quality (2 I 3)

    Loan portfolio quality (2 I 3) Commercial 32.1% 33.0% 35.3% 35.4% 35.6% 36.8% 37.2% 125.0% 27.7% 29.5% 40.0% 30.0% 115.0% 20.0% 105.0% Loans by stages 10.0% 95.0% 9.0% 8.8% 8.6% 8.3% 8.2% 8.2% 8.2% 8.6% 8.7% 0.0% 9.3% 8.0% 6.1% 5.1% 85.0% 4.1% 3.6% 3.6% 3.3% 3.0% -10.0% 75.0% 110.0% 32.9% 33.9% 37.3

  17. Slide 17: Loan portfolio quality (3 I 3)

    Loan portfolio quality (3 I 3) Cost of risk, net - Commercial loans Cost of risk 1.87% 0.85% 0.84% 0.91% 1.28% 0.65% 0.58% 3.17% -0.25% 2.85% 2.94% 2.47% -0.75% 2.90% 2.07% 2.01% 2.66% 1.88% 2.53% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 1.77% 1.76% 2.16% 1.73% 1.72% 1.46% 1.40% 1.36% Cost of ri

  18. Slide 18: Fees and other operating income

    Fees and other operating income Figures in Ps. Billions Gross fee income Non-financial sector (*) Y/Y% = 3.9% Q/Q% = 5.6% 1Q23 4Q23 1Q24 1,085 1,067 1,127 4.3% 4.1% Energy & gas 235 266 352 4.4% 19.2% 25.0% 23.0% Infrastructure 986 591 532 10.6% 10.7% 11.3% Hotels 22 26 20 61.3% 66.0% 60.2% Agribusi

  19. Slide 19: Efficiency ratios

    Efficiency ratios Figures in Ps. Billions Cost to income(1) 55.5% 53.7% 54.8% 54.0% 50.4% 48.2% 46.7% 42.6% 38.2% 1Q23 4Q23 1Q24 Y/Y% Q/Q% Personnel expenses 773.4 748.6 768.8 -0.6% 2.7% General and administrative expenses 1,087.2 1,182.3 1,088.9 0.2% -7.9% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q

  20. Slide 20: Profitability

    Profitability Figures in Ps. Billions Net income attributable to controlling interest 1,730 Continuing operations Discontinued operations 1,098 675 408 106 30 425 166 83 632 569 378 65 114 310 -330 -641 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 EPS 77.6 29.7 17.2 (13.9) 17.9 7.0 2.7 3.5 4.8 3.8%

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Grupo Aval Acciones y Valores S.A. ADR (Each representing 20 preferred shares) — Q1 2024 Earnings Presentation on 6ix