6-K 1 dp193858_6k.htm FORM 6-K

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

Report Of Foreign Private Issuer

Pursuant To Rule 13a-16 Or 15d-16 Of

The Securities Exchange Act Of 1934

 

For the month of May 2023

 

 

 

Commission File Number: 000-54290

 

Grupo Aval Acciones y Valores S.A.

(Exact name of registrant as specified in its charter)

 

Carrera 13 No. 26A - 47

Bogotá D.C., Colombia

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

Form 20-F

X

   Form 40-F  
         

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

 

Yes     No

X

         

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

 

Yes     No

X

         
         
 

 

 

GRUPO AVAL ACCIONES Y VALORES S.A.

 

TABLE OF CONTENTS

 

ITEM  
1. Report of First Quarter 2023 Consolidated Results

 

 

 

Item 1

 

 

 

 

 

 

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 and supervision of the Superintendency of Finance as holding company of the Aval financial conglomerate.

 

The consolidated financial information included in this document is presented in accordance with IFRS as currently issued by the IASB. Details of the calculations of non-IFRS measures such as ROAA and ROAE, among others, are explained when required in this report.

 

This report includes forward-looking statements. In some cases, you can identify these forward-looking statements by words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of these and other comparable words. Actual results and events may differ materially from those anticipated herein as a consequence of changes in general, economic and business conditions, changes in interest and currency rates and other risk described from time to time in our filings with the Registro Nacional de Valores y Emisores and the SEC.

 

Recipients of this document are responsible for the assessment and use of the information provided herein. Matters described in this presentation and our knowledge of them may change extensively and materially over time, but we expressly disclaim any obligation to review, update or correct the information provided in this report, including any forward looking statements, and do not intend to provide any update for such material developments prior to our next earnings report.

 

The content of this document and the figures included herein are intended to provide a summary of the subjects discussed rather than a comprehensive description.

 

When applicable, in this document we refer to billions as thousands of millions.

  

1 

 

1Q23 Results Report

Information reported in Ps billions and under IFRS 

 

ABOUT GRUPO AVAL

 

Grupo Aval, leading financial conglomerate in Colombia, operates through: four commercial banks in Colombia (Banco de Bogotá, Banco de Occidente, Banco Popular and Banco AV Villas), the largest private pensions and severance fund manager in Colombia (Porvenir), and the largest financial corporation in Colombia (Corficolombiana). In addition, it is present in Central America through Multibank's operation in Panama through Banco de Bogotá.

 

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

 

As of March 31, 2023, the Company has the following issuances:

 

Stocks Securities issues in force
Type of security Common stock Preferred stock
Trading system Stock exchange Stock exchange
Stock exchange Colombian Stock Exchange (BVC)
Outstanding Shares 16,204,145,980 7,539,329,774
Issue amount 16,204,145,980 7,539,329,774
Amount placed 16,204,145,980 7,539,329,774

 

Local Bonds
Year

Principal

(million) 

 Rate Rating
Issue of 2009 - Series A - 15 years 124,520 IPC+5.2%

AAA –BRC Investor

Services S.A.

 

Issue of 2016 - Series A - 10 years 93,000 IPC+3.86%
Issue of 2016 - Series A - 20 years 207,000 IPC+4.15%
Issue of 2017 - Series A - 25 years 300,000 IPC +3.99%
Issue of 2019 - Series C - 5 years 100,000 6.42%
Issue of 2019 - Series A - 20 years 300,000 IPC +3.69%
  1,124,520    
International Bonds

Issue of 2020 - 10 years

 

US 1,000,000

 

4.375%

 

Ba2 / Negative

(Moody’s) 

BB+ Stable (Fitch)

 

Main domicile: Bogotá D.C., Colombia

 

Address: Carrera 13 No 26A – 47- 23rd Floor

 

2 

 

Table of contents

 

Key results of 1Q23 4
   
Consolidated Financial Results 5
   
– Statement of Financial Position Analysis 5
   
– Income Statement Analysis 14
   
Risk Management 18
   
Quantitative and Qualitative  disclosure about market risk 18
   
Corporate Governance 18
   
ESG 18
   
   
   
Separated Financial Results 19
   
– Statement of Financial Position Analysis 19
   
– Income Statement Analysis 20
   
   
   
Grupo Aval + Grupo Aval Limited 22
   
Definitions 26

 

EXHIBIT 1 – Consolidated Financial Statements

 

EXHIBIT 2 – Separate Financial Statements

 

3 

 

Report of 1Q2023 consolidated results

Information reported in Ps billions and under IFRS, except per share information

 

 

Bogotá, May 15th, 2023. Grupo Aval S.A. (NYSE:AVAL) reported a consolidated attributable net income of Ps 425.1 billion (Ps 17.9 pesos per share) for 1Q23. ROAE was 10.4% and ROAA was 1.4% for 1Q23.

 

    COP $tn   1Q22   4Q22   1Q23   1Q23 vs 4Q22   1Q23 vs 1Q22
Balance Sheet   Gross Loans   $ 158.3   $ 182.3   $ 184.6   1.2%   16.6%
  Deposits   $ 152.7   $ 173.3   $ 178.4   2.9%   16.8%
  Deposits/Net Loans   0.99 x   0.97 x   1.00 x   0.03 x   0.00 x
                         
Loan Quality   90 days PDLs / Gross Loans   3.5%   3.3%   3.4%   19 bps   (9) bps
  Allowance/90 days PDLs   1.58 x   1.55 x   1.48 x   -0.07 x   -0.10 x
  Cost of risk   1.7%   1.5%   1.7%   25 bps   (2) bps
                         
Profitability   Net interest margin   4.1%   3.5%   3.7%   20 bps   (43) bps
  Fee income Ratio   16.2%   19.8%   19.0%   (86) bps   279 bps
  Efficiency Ratio   38.2%   55.5%   46.6%   (896) bps   834 bps
  Attributable net income   $ 1.73   -$ 0.33   $ 0.43   -228.7%   -75.4%
  ROAA   3.8%   -0.6%   1.4%   201 bps   (238) bps
  ROAE   35.3%   -8.0%   10.4%   1,837 bps   (2,484) bps

 

 Pro forma ratio

  

•Pro-forma ratios for 1Q22 are based on reported revenues and expenses, associated to each ratio; however, the denominators averages used to calculate these ratios contain pro-forma figures from previous quarters.

 

Gross loans excludes interbank and overnight funds. PDLs 90+ defined as loans more than 90 day s past due. Cost of Risk calculated as Impairment loss on loans and other accounts receivable net of recoveries of charged-off assets divided by average gross loans. Net Interest Margin includes net interest income plus net trading income from debt and equity investments at FVTPL divided by total average interest-earning assets. Fee income ratio is calculated as net income from commissions and fees divided by net interest income plus net income from commissions and fees, gross profit from sales of goods and services, net trading income, net income from other financial instruments mandatory at FVTPL and total other income. Efficiency Ratio is calculated as total other expenses divided by net interest income plus net income from commissions and fees, gross profit from sales of goods and services, net trading income, net income from other financial instruments mandatory at FVTPL and total other income. ROAA is calculated as annualized Net Income divided by average of total assets. ROAE is calculated as Net Income attributable to Aval's shareholders divided by average attributable shareholders' equity . NS refers to non-significant figures.

 

4 

 

Report of 1Q2023 consolidated results

Information reported in Ps billions and under IFRS

 

Grupo Aval Acciones y Valores S.A.

Consolidated Financial Statements Under IFRS

Financial Statements Under IFRS

Information in Ps. Billions

 

Consolidated Statement of Financial Position   1Q22   4Q22   1Q23   D
        1Q23 vs. 4Q22 1Q23 vs. 1Q22
Cash and cash equivalents   16,407.1   17,032.9   19,327.8   13.5% 17.8%
Trading assets   9,846.7   11,841.4   13,585.5   14.7% 38.0%
Investment securities   31,550.3   33,674.5   31,969.1   -5.1% 1.3%
Hedging derivatives assets   53.8   20.9   35.1   68.3% -34.7%
Total loans, net   154,054.5   179,115.8   179,102.9   0.0% 16.3%
Tangible assets   7,003.4   7,235.4   7,247.8   0.2% 3.5%
Goodwill   2,220.5   2,248.2   2,232.2   -0.7% 0.5%
Concession arrangement rights   11,338.9   13,242.7   13,536.2   2.2% 19.4%
Other assets   28,648.9   31,179.4   31,841.5   2.1% 11.1%
Total assets   261,124.1   295,591.2   298,878.2   1.1% 14.5%
Trading liabilities   1,360.4   1,757.6   1,517.6   -13.7% 11.6%
Hedging derivatives liabilities   52.6   3.6   5.6   55.7% -89.4%
Customer deposits   152,708.1   173,341.1   178,352.4   2.9% 16.8%
Interbank borrowings and overnight funds   11,156.8   9,087.9   8,799.8   -3.2% -21.1%
Borrowings from banks and others   17,937.9   30,309.4   29,346.9   -3.2% 63.6%
Bonds issued   30,414.2   28,362.2   27,352.4   -3.6% -10.1%
Borrowings from development entities   3,270.0   4,357.3   4,539.5   4.2% 38.8%
Other liabilities   14,623.5   17,550.5   18,737.1   6.8% 28.1%
Total liabilities   231,523.5   264,769.6   268,651.1   1.5% 16.0%
Equity attributable to owners of the parent   16,230.3   16,467.0   16,175.7   -1.8% -0.3%
Non-controlling interest   13,370.3   14,354.7   14,051.3   -2.1% 5.1%
Total equity   29,600.6   30,821.7   30,227.0   -1.9% 2.1%
Total liabilities and equity   261,124.1   295,591.2   298,878.2   1.1% 14.5%
                   
Consolidated Statement of Income   1Q22   4Q22   1Q23   D
Interest income   3,759.8   6,143.6   7,008.3   14.1% 86.4%
Interest expense   1,679.2   4,378.4   5,459.5   24.7% N.A.
Net interest income   2,080.6   1,765.2   1,548.8   -12.3% -25.6%
Loans and other accounts receivable   807.3   841.7   920.5   9.4% 14.0%
Other financial assets   18.9   (0.4)   (0.3)   -30.6% -101.5%
Recovery of charged-off financial assets   (130.8)   (188.3)   (133.7)   -29.0% 2.2%
Net impairment loss on financial assets   695.4   653.0   786.5   20.4% 13.1%
Net interest income, after impairment losses   1,385.2   1,112.2   762.3   -31.5% -45.0%
Net income from commissions and fees   710.0   749.7   842.3   12.4% 18.6%
Gross profit from sales of goods and services   1,020.6   918.1   1,163.6   26.7% 14.0%
Net trading income   (287.3)   609.0   (81.3)   -113.3% -71.7%
Net income from other financial instruments mandatory at FVTPL   73.9   68.2   93.9   37.7% 27.1%
Total other income   793.3   (327.9)   875.9   N.A 10.4%
Total other expenses   1,679.5   2,101.0   2,077.0   -1.1% 23.7%
Net income before income tax expense   2,016.2   1,028.3   1,579.8   53.6% -21.6%
Income tax expense   633.0   526.3   532.6   1.2% -15.9%
Net income for the period of continued operations   1,383.2   502.0   1,047.3   108.6% -24.3%
Net income for the period of discontinued operations   1,597.5   (929.4)   -   -100.0% -100.0%
Net income for the period   2,980.8   (427.5)   1,047.3   N.A -64.9%
Non-controlling interest   1,251.1   (97.1)   622.2   N.A -50.3%
Net income attributable to owners of the parent   1,729.7   (330.4)   425.1   N.A -75.4%
                   
                   
Key ratios   1Q22   4Q22   1Q23      
Net Interest Margin(1)   4.4%   3.3%   2.8%      
Net Interest Margin (including net trading income)(1)   4.1%   3.5%   3.7%      
Efficiency ratio(2)   38.2%   55.5%   46.7%      
90 days PDL / Gross loans (5)   3.5%   3.3%   3.4%      
Provision expense / Average gross loans (6)   1.7%   1.5%   1.7%      
Allowance / 90 days PDL (5)   1.58   1.55   1.48      
Allowance / Gross loans   5.6%   5.0%   5.1%     Pro forma ratio  
Charge-offs / Average gross loans (6)   2.0%   1.8%   1.8%      
Total loans, net / Total assets   59.0%   60.6%   59.9%      
Deposits / Total loans, net   99.1%   96.8%   99.6%      
                   
Key ratios   1Q22   4Q22   1Q23      
Equity / Assets   11.3%   10.4%   10.1%      
Tangible equity ratio (7)   10.0%   9.1%   8.8%      
ROAA(3)   3.8%   -0.6%   1.4%      
ROAE(4)   35.3%   -8.0%   10.4%      
Shares outstanding (EoP)   22,281,017,159   23,743,475,754   23,743,475,754      
Shares outstanding (Average)   22,281,017,159   23,743,475,754   23,743,475,754      
Common share price (EoP)   965.0   530.0   555.0      
Preferred share price (EoP)   852.0   570.0   558.9      
BV/ EoP shares in Ps.   728.4   693.5   681.3      
EPS   77.6   (13.9)   17.9      
                   
P/E (8)   2.7   (15.3)   7.8      
P/BV (8)   1.2   0.8   0.8      

 

•Pro-forma ratios for 1Q22 are based on reported revenues and expenses, associated to each ratio; however, the denominators avera ges used to calculate these ratios contain pro-forma figures from previous quarters.

 

(1) NIM is calculated as Net Interest Income divided by the average of Interest Earning Assets; (2) Efficiency Ratio is calculated as total otherexpenses divided by net interest income plus net income from commissions and fees, gross profit from sales of goods and services, net trading income, net income from other financial instruments mandatory at FVTPL and total other income; (3) ROAA is calculated as Income before Minority Interest divided by the average of total assets for each quarter; (4) ROAE is calculated as Net Income attributable to Grupo Aval’s shareholders divided by the average of shareholders´ attributable equity for each quarter; (5) PDLs 90+ defined as loans more than 90 days past due include interest accounts receivables. Gross loans excluding interbank and overnight funds; (6) Refers to average gross loans for the period; (7) Tangible Equity Ratio is calculated as Total Equity minus Intangibles (excluding those related to concessions) divided by Total Assets minus Intangibles (excluding those related to concessions); (8) Based on Preferred share prices.

 

5 

 

Report of 1Q2023 consolidated results

Information reported in Ps billions and under IFRS

 

Consolidated Financial Results

 

Statement of Financial Position Analysis

 

•Pro-forma ratios for 1Q22 are based on reported revenues and expenses, associated to each ratio; however, the denominators averages used to calculate these ratios contain pro-forma figures from previous quarters

 

1.  Assets

 

Total assets as of March 31st, 2023 totaled Ps 298,878.2 billion showing an increase of 14.5% versus March 31st, 2022 and an increase of 1.1% versus December 31st, 2022. Growth was mainly driven by (i) a 16.3% year over year growth in total loans, net to Ps 179,102.9 billion, (ii) a 38.0% yearly growth in trading assets, net to Ps 13,585.5 billion and (iii) a 11.1% yearly growth in other assets, net to Ps 31,841.5 billion.

 

1.1  Loan portfolio

 

Gross loans (excluding interbank and overnight funds) increased by 16.6% between March 31st, 2023 and March 31st, 2022 to Ps 184,610.5 billion mainly driven by (i) a 20.1% increase in Mortgages loans to Ps 18,026.1 billion, (ii) a 16.6% increase in Commercial loans to Ps 106,129.9 billion and (iii) a 15.8% increase in Consumer loans to Ps 60,186.9 billion.

 

Interbank & overnight funds decreased by 14.5% to Ps 3,920.0 billion during the last twelve months.

 

Loss allowance was Ps 9,427.5 billion as of March 31st, 2023 taking net loans to Ps 179,102.9 billion.

 

Total loans, net   1Q22   4Q22   1Q23   D
        1Q23 vs. 4Q22 1Q23 vs. 1Q22
Gross loans                  
Commercial loans   91,006.7   104,775.1   106,129.9   1.3% 16.6%
Consumer loans   51,984.3   59,419.4   60,186.9   1.3% 15.8%
Mortgages loans   15,010.3   17,883.4   18,026.1   0.8% 20.1%
Microcredit loans   292.6   267.7   267.6   0.0% -8.5%
Gross loans   158,293.9   182,345.6   184,610.5   1.2% 16.6%
Interbank & overnight funds   4,584.7   5,967.7   3,920.0   -34.3% -14.5%
Total gross loans   162,878.7   188,313.4   188,530.4   0.1% 15.7%
Loss allowance   (8,824.2)   (9,197.5)   (9,427.5)   2.5% 6.8%
Allowance for impairment of commercial loans   (5,346.5)   (5,494.2)   (5,380.1)   -2.1% 0.6%
Allowance for impairment of consumer loans   (3,014.8)   (3,311.9)   (3,630.9)   9.6% 20.4%
Allowance for impairment of mortgages   (373.4)   (352.4)   (376.2)   6.7% 0.8%
Allowance for impairment of microcredit loans   (89.5)   (39.0)   (40.3)   3.4% -55.0%
Total loans, net   154,054.5   179,115.8   179,102.9   0.0% 16.3%

6 

 

Report of 1Q2023 consolidated results

Information reported in Ps billions and under IFRS

 

The following table shows the gross loan composition per product of each of our loan categories.

 

Gross loans   1Q22   4Q22   1Q23   D
        1Q23 vs. 4Q22 1Q23 vs. 1Q22
General purpose   65,254.4   74,473.6   74,955.1   0.6% 14.9%
Working capital   11,682.5   14,631.6   14,930.6   2.0% 27.8%
Financial leases   10,042.3   10,862.0   10,892.9   0.3% 8.5%
Funded by development banks   3,250.1   4,053.3   4,397.1   8.5% 35.3%
Overdrafts   413.5   436.6   432.4   -1.0% 4.6%
Credit cards   363.8   317.9   521.8   64.1% 43.4%
Commercial loans   91,006.7   104,775.1   106,129.9   1.3% 16.6%
Payroll loans   30,860.5   33,306.7   33,360.4   0.2% 8.1%
Personal loans   10,429.1   13,425.6   13,981.4   4.1% 34.1%
Credit cards   5,932.9   7,023.6   7,192.8   2.4% 21.2%
Automobile and vehicle   4,557.9   5,421.1   5,439.0   0.3% 19.3%
Financial leases   23.9   18.5   17.2   -6.8% -27.9%
Overdrafts   50.4   75.9   73.4   -3.3% 45.5%
Other   129.6   148.1   122.6   -17.2% -5.4%
Consumer loans   51,984.3   59,419.4   60,186.9   1.3% 15.8%
Mortgages   12,878.1   15,488.0   15,596.4   0.7% 21.1%
Housing leases   2,132.2   2,395.3   2,429.7   1.4% 14.0%
Mortgages loans   15,010.3   17,883.4   18,026.1   0.8% 20.1%
Microcredit loans   292.6   267.7   267.6   0.0% -8.5%
Gross loans   158,293.9   182,345.6   184,610.4   1.2% 16.6%
Interbank & overnight funds   4,584.7   5,967.7   3,920.0   -34.3% -14.5%
Total gross loans   162,878.7   188,313.4   188,530.4   0.1% 15.7%

 

In terms of gross loans (excluding interbank and overnight funds), 90.6% are domestic and 9.4% are foreign (reflecting the Multi Financial Group operation).

 

Over the last twelve months we observed a strong performance in all types of loans.

 

Commercial loans increased by 16.6% during the last twelve months and 1.3% during the quarter.

 

Consumer loans growth over the last year and quarter was mainly by personal loans and credit cards. Consumer loans grew by 15.8% annually and increased 1.3% over the quarter. Mortgages loans increased by 20.1% over the year and 0.8% in the last quarter.

 

The following table shows the loans and receivables composition per entity. During the last twelve months, Banco de Occidente showed the highest growth rate within our banks, driven by a strong performance in all types of loans with consumer loans growing 24.4%, commercial loans 20.7% and mortgages growing 16.7%.

 

7 

 

Report of 1Q2023 consolidated results

Information reported in Ps billions and under IFRS

 

Gross loans / Bank ($)   1Q22   4Q22   1Q23   D
        1Q23 vs. 4Q22 1Q23 vs. 1Q22
Banco de Bogotá   83,017.5   96,078.0   97,023.9   1.0% 16.9%
Banco de Occidente   38,124.3   44,581.2   46,260.2   3.8% 21.3%
Banco Popular   23,509.7   25,212.5   24,901.0   -1.2% 5.9%
Banco AV Villas   13,627.7   15,004.8   15,026.9   0.1% 10.3%
Corficolombiana   1,849.9   2,199.5   2,177.3   -1.0% 17.7%
Grupo Aval Holding   -   1,508.8   1,260.4   -16.5% N.A.
Eliminations   (1,835.2)   (2,239.2)   (2,039.2)   -8.9% 11.1%
Gross loans   158,293.9   182,345.6   184,610.5   1.2% 16.6%
Interbank & overnight funds   4,584.7   5,967.7   3,920.0   -34.3% -14.5%
Total gross loans   162,878.7   188,313.4   188,530.4   0.1% 15.7%
                   
Gross loans / Bank (%)   1Q22   4Q22   1Q23      
           
Banco de Bogotá   52.4%   52.7%   52.6%      
Banco de Occidente   24.1%   24.4%   25.1%      
Banco Popular   14.9%   13.8%   13.5%      
Banco AV Villas   8.6%   8.2%   8.1%      
Corficolombiana   1.2%   1.2%   1.2%      
Grupo Aval Holding   0.0%   0.8%   0.7%      
Eliminations   -1.2%   -1.2%   -1.1%      
Gross loans   100%   99%   100%      

 

The 0.7% of Grupo Aval Holding reflects the loan with Esadinco S.A. (Related Party). This transaction was conducted on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons, and did not involve more than the normal risk of collectability or present other unfavorable features.

 

The quality of our loan portfolio deteriorated slightly during the quarter driven by the economic slowdown.

 

Our 30 days PDL to total loans closed in 4.9% for 1Q23, 4.3% for 4Q22 and 4.6% for 1Q22. The ratio of 90 days PDL to total loans was 3.4% for 1Q23, 3.3% for 4Q22 and 3.5% for 1Q22.

 

Commercial loans 30 days PDL ratio was 4.4% for 1Q23, 4.0% for 4Q22 and 4.5% for 1Q22; 90 days PDL ratio was 3.7%, 3.6% and 4.0%, respectively. Consumer loans 30 days PDL ratio was 5.4% for 1Q23, 4.7% for 4Q22, and 4.5% for 1Q22; 90 days PDL ratio was 3.0%, 2.7% and 2.7%, respectively. Mortgages’ 30 days PDL ratio was 5.5% for 1Q23, 4.9% for 4Q22, and 5.5% for 1Q22; 90 days PDL ratio was 3.1%, 3.0% and 3.3%, respectively.

 

Total gross loans   1Q22   4Q22   1Q23   D
        1Q23 vs. 4Q22 1Q23 vs. 1Q22
''A'' normal risk   141,769.7   165,978.8   167,186.7   0.7% 17.9%
''B'' acceptable risk   3,965.2   3,577.5   4,194.9   17.3% 5.8%
''C'' appreciable risk   4,180.5   3,803.1   3,919.3   3.1% -6.2%
''D'' significant risk   4,501.9   4,854.9   4,869.9   0.3% 8.2%
''E'' unrecoverable   3,876.7   4,131.4   4,439.7   7.5% 14.5%
Gross loans   158,293.9   182,345.6   184,610.4   1.2% 16.6%
Interbank and overnight funds   4,584.7   5,967.7   3,920.0   -34.3% -14.5%
Total gross loans   162,878.7   188,313.4   188,530.4   0.1% 15.7%
                   
CDE loans / gross loans (*)   7.9%   7.0%   7.2%      

 

8 

 

 

Report of 1Q2023 consolidated results

Information reported in Ps billions and under IFRS

 

Past due loans   1Q22   4Q22   1Q23   D
        1Q23 vs. 4Q22 1Q23 vs. 1Q22
Performing   86,882.8   100,550.0   101,440.5   0.9% 16.8%
Between 31 and 90 days past due   476.5   436.3   710.3   62.8% 49.1%
+90 days past due   3,647.4   3,788.8   3,979.1   5.0% 9.1%
Commercial loans   91,006.7   104,775.1   106,129.9   1.3% 16.6%
Performing   49,657.5   56,630.2   56,924.8   0.5% 14.6%
Between 31 and 90 days past due   947.2   1,213.9   1,473.7   21.4% 55.6%
+90 days past due   1,379.6   1,575.3   1,788.3   13.5% 29.6%
Consumer loans   51,984.3   59,419.4   60,186.9   1.3% 15.8%
Performing   14,190.7   17,011.9   17,042.5   0.2% 20.1%
Between 31 and 90 days past due   329.8   330.6   420.4   27.2% 27.5%
+90 days past due   489.8   540.9   563.2   4.1% 15.0%
Mortgages loans   15,010.3   17,883.4   18,026.1   0.8% 20.1%
Performing   209.0   230.2   229.5   -0.3% 9.8%
Between 31 and 90 days past due   10.3   8.3   8.4   0.2% -18.7%
+90 days past due   73.3   29.2   29.8   2.0% -59.4%
Microcredit loans   292.6   267.7   267.6   0.0% -8.5%
Gross loans   158,293.9   182,345.6   184,610.5   1.2% 16.6%
Interbank & overnight funds   4,584.7   5,967.7   3,920.0   -34.3% -14.5%
Total gross loans   162,878.7   188,313.4   188,530.4   0.1% 15.7%
                   
30 Days PDL / gross  loans (*)   4.6%   4.3%   4.9%      
90 Days PDL / gross loans (*)   3.5%   3.3%   3.4%      
                   
                   
Loans by stages (%)   1Q22   4Q22   1Q23      
           
Loans classified as Stage 2 / gross loans   10.5%   6.5%   6.3%      
Loans classified as Stage 3 / gross loans   6.9%   6.4%   6.4%      
Loans classified as Stage 2 and 3 / gross loans   17.4%   12.8%   12.7%      
Allowance for Stage 1 loans / Stage 1 loans   0.9%   0.9%   0.9%      
Allowance for Stage 2 loans / Stage 2 loans   10.5%   12.1%   12.1%      
Allowance for Stage 3 loans / Stage 3 loans   53.5%   54.0%   55.5%      
Allowance for Stage 2 y 3 loans / Stage 2 y 3 loans   27.5%   32.9%   33.9%      

 

Grupo Aval’s coverage over its 90 days PDL was 1.5x for 1Q23 and 4Q22, 1.6x for 1Q22. Allowance to CDE Loans was 0.7x for 1Q23, 4Q22 and 1Q22, allowance to 30 days PDL was 1.1x in 1Q23, 1.2x for 4Q22 and 1Q22. Impairment loss, net of recoveries of charged off assets to average gross loans was 1.7% for 1Q23, 1.5% for 4Q22 and 1.7% in pro forma 1Q22. Charge- offs to average gross loans was 1.8% for 1Q23 and for 4Q22, and 2.0% in pro forma 1Q22.

 

Total gross loans   1Q22   4Q22   1Q23
     
             
Allowance for impairment / CDE loans   0.7   0.7   0.7
Allowance for impairment / 30 days PDL   1.2   1.2   1.1
Allowance for impairment / 90 days PDL   1.6   1.5   1.5
Allowance for impairment / gross loans (*)   5.6%   5.0%   5.1%
             
Impairment loss / CDE loans   0.3   0.3   0.3
Impairment loss / 30 days PDL   0.4   0.4   0.4
Impairment loss / 90 days PDL   0.6   0.6   0.6
Impairment loss / average gross loans (*)   2.1%   1.9%   2.0%
Impairment loss, net of recoveries of charged-off assets / average gross loans (*)   1.7%   1.5%   1.7%
             
Charge-offs / average gross loans (*)   2.0%   1.8%   1.8%

 

 Pro forma ratio

 

(*) Gross loans exclude interbank and overnight funds. 30 days past due and 90 days past due are calculated on a capital plus interest accounts receivable basis.

 

•Pro-forma ratios for 1Q22 are based on reported revenues and expenses, associated to each ratio; however, the denominators averages used to calculate these ratios contain pro-forma figures from previous quarters

 

9 

 

Report of 1Q2023 consolidated results

Information reported in Ps billions and under IFRS

 

1.2  Investment securities and trading assets

 

Total investment securities and trading assets increased 10.0% to Ps 45,554.5 billion between March 31st, 2023 and March 31st, 2022 and increased 0.1% versus December 31st, 2022.

 

Ps 36,211.6 billion of our total portfolio is invested in debt securities, which increased by 8.3% between March 31st, 2023 and March 31st, 2022 and increased by 0.7% versus December 31st, 2022. Ps 7,428.2 billion of our total investment securities is invested in equity securities, which increased by 12.1% between March 31st, 2023 and March 31st, 2022 and decreased by 1.2% versus December 31st, 2022.

 

Investment and trading assets   1Q22   4Q22   1Q23   D
        1Q23 vs. 4Q22 1Q23 vs. 1Q22
Debt securities   3,247.3   3,760.9   5,145.6   36.8% 58.5%
Equity securities   5,254.7   6,039.1   6,525.1   8.0% 24.2%
Derivative assets   1,344.8   2,041.4   1,914.8   -6.2% 42.4%
Trading assets   9,846.7   11,841.4   13,585.5   14.7% 38.0%
Investments in debt securities at FVTPL (non compliant with SPPI test)   -   1.4   1.4   -0.6% -0.6%
Debt securities at FVOCI   22,591.1   22,461.8   21,275.0   -5.3% -5.8%
Equity securities at FVOCI   1,373.8   1,476.7   903.1   -38.8% -34.3%
Investments in securities at FVOCI   23,964.9   23,938.5   22,178.1   -7.4% -7.5%
Investments in debt securities at AC   7,585.4   9,734.6   9,789.6   0.6% 29.1%
Investment and trading assets   41,397.0   45,515.9   45,554.5   0.1% 10.0%

 

The average yield on our debt and equity investment securities (trading assets, investments in debt securities at FVTPL, investments in securities at FVOCI and investments in debt securities at AC) was 11.7% for 1Q23, 7.5% for 4Q22 and 3.6% for pro forma 1Q22.

 

1.3  Cash and Cash Equivalents

 

As of March 31st, 2023 cash and cash equivalents had a balance of Ps 19,327.8 billion showing an increase of 13.5% versus March 31st, 2022 and an increase of 17.8% versus December 31st, 2022.

 

The ratio of cash and cash equivalents to customer deposits was 10.8% at March 31st, 2023, 9.8% at December 31st, 2021, and 10.7% at March 31st, 2022.

 

10 

 

Report of 1Q2023 consolidated results

Information reported in Ps billions and under IFRS

 

1.4 Goodwill and Other Intangibles

 

Goodwill and other intangibles as of March 31st, 2023 reached Ps 17,851.1 billion, increasing by 17.1% versus March 31st, 2022 and 1.8% versus December 31st, 2022.

 

Goodwill as of March 31st, 2023 was Ps 2,232.2 billion, increasing by 0.5% versus March 31st, 2022 and decreasing 0.7% versus December 31st, 2022.

 

Other intangibles, which include “concession arrangement rights” and other intangibles, mainly reflect the value of road concessions recorded for the most part at Corficolombiana. Other intangibles as of March 31st, 2023 reached Ps 15,618.9 billion and grew by 19.9% versus pro forma March 31st, 2022 and increased by 2.2% versus December 31st, 2022.

 

2.  Liabilities

 

As of March 31st, 2023 Total Funding represented 92.5% of total liabilities and other liabilities represented 7.5%.

 

2.1  Funding

 

Total Funding (Total financial liabilities at amortized cost) which includes (i) Customer deposits, (ii) Interbank borrowings and overnight funds, (iii) Borrowings from banks and others, (iv) Bonds issued, and (v) Borrowing from development entities had a balance of Ps 248,390.9 billion as of March 31st, 2023 showing an increase of 15.3% versus March 31st, 2022 and 1.2% versus December 31st, 2022. Total customer deposits represented 71.8% of total funding as of 1Q23, 70.6% for 4Q22, and 70.9% 1Q22.

 

Average cost of funds was 8.4% for 1Q23, 7.3% for 4Q22 and 3.2% for pro forma 1Q22.

 

2.1.1  Customer deposits

 

Customer deposits   1Q22   4Q22   1Q23   D
        1Q23 vs. 4Q22 1Q23 vs. 1Q22
Checking accounts   19,617.1   19,695.4   17,917.7   -9.0% -8.7%
Other deposits   302.9   841.5   928.3   10.3% N.A.
Non-interest bearing   19,920.0   20,536.9   18,846.0   -8.2% -5.4%
Checking accounts   8,599.8   6,236.6   6,041.7   -3.1% -29.7%
Time deposits   53,221.1   72,273.7   85,133.4   17.8% 60.0%
Savings deposits   70,967.2   74,293.9   68,331.2   -8.0% -3.7%
Interest bearing   132,788.1   152,804.2   159,506.4   4.4% 20.1%
Customer deposits   152,708.1   173,341.1   178,352.4   2.9% 16.8%

11 

 

Report of 1Q2023 consolidated results

Information reported in Ps billions and under IFRS

 

Of our total customer deposits as of March 31st, 2023, checking accounts represented 13.4%, time deposits 47.7%, savings accounts 38.3%, and other deposits 0.5%.

 

The following table shows the customer deposits composition by bank. During the last twelve months, Banco de Occidente showed the highest growth rate in customer deposits within our banking operation in Colombia.

 

Deposits / Bank ($)   1Q22   4Q22   1Q23   D
        1Q23 vs. 4Q22 1Q23 vs. 1Q22
Banco de Bogotá   77,045.3   88,027.5   89,606.3   1.8% 16.3%
Banco de Occidente   37,561.3   43,095.9   46,703.8   8.4% 24.3%
Banco Popular   23,068.5   24,314.5   24,904.7   2.4% 8.0%
Banco AV Villas   13,557.0   14,844.5   13,929.9   -6.2% 2.8%
Corficolombiana   5,440.7   6,589.6   6,719.7   2.0% 23.5%
Eliminations   (3,964.7)   (3,530.8)   (3,512.0)   -0.5% -11.4%
Total Grupo Aval   152,708.1   173,341.1   178,352.4   2.9% 16.8%
                   
Deposits / Bank (%)   1Q22   4Q22   1Q23      
Banco de Bogotá   50.5%   50.8%   50.2%      
Banco de Occidente   24.6%   24.9%   26.2%      
Banco Popular   15.1%   14.0%   14.0%      
Banco AV Villas   8.9%   8.6%   7.8%      
Corficolombiana   3.6%   3.8%   3.8%      
Eliminations   -2.6%   -2.0%   -2.0%      
Total Grupo Aval   100.0%   100.0%   100.0%      

 

2.1.2  Borrowings from Banks and Other (includes borrowings from development entities)

 

As of March 31st, 2023 borrowings from banks and other totaled Ps 33,886.4 billion, increasing 59.8% versus March 31st, 2022 and decreasing 2.3% versus December 31st, 2022.

 

2.1.3  Bonds issued

 

Total bonds issued as of March 31st, 2023 totaled Ps 27,352.4 billion and decreased 10.1% versus March 31st, 2022 and 3.6% versus December 31st, 2022.

 

12 

 

Report of 1Q2023 consolidated results

Information reported in Ps billions and under IFRS

 

3.  Non-controlling Interest

 

Non-controlling Interest in Grupo Aval reflects the minority stakes that third party shareholders hold in each of its direct consolidated subsidiaries (Banco de Bogotá, Banco de Occidente, Banco Popular, Banco AV Villas, Corficolombiana and Porvenir).

 

As of March 31st, 2023 non-controlling interest was Ps 14,051.3 billion which increased by 5.1% versus March 31st, 2022 and decreased by 2.1% versus December 31st, 2022. Total non- controlling interest represents 46.5% of total equity as of 1Q23, compared to 46.6% in 4Q22 and 45.2% in 1Q22.

 

Total non-controlling interest derives from the sum of the combined minority interests of our banks and of Grupo Aval, applying eliminations associated with the consolidation process of Grupo Aval.

 

Percentage consolidated by Aval   1Q22   4Q22   1Q23   D
        1Q23 vs. 4Q22 1Q23 vs. 1Q22
Banco de Bogotá   68.7%   68.9%   68.9%   - 19
Banco de Occidente   72.3%   72.3%   72.3%   - -
Banco Popular   93.7%   93.7%   93.7%   - -
Banco AV Villas   79.9%   79.9%   79.9%   - -
Porvenir (1)   75.7%   75.8%   75.8%   - 9
Corficolombiana   40.0%   40.5%   40.5%   - 55

 

(1) Grupo Aval is the direct controlling entity of Porvenir.

 

4.  Attributable Shareholders’ Equity

 

Attributable shareholders’ equity as of March 31st, 2023 was Ps 16,175.7 billion, showing a decrease of 0.3% versus March 31st, 2022 and a 1.8% versus December 31st, 2022.

 

13 

 

Report of 1Q2023 consolidated results

Information reported in Ps billions and under IFRS

 

Income Statement Analysis

Our net income attributable to the owners of the parent company for 1Q23 was Ps 425.1 billion.

 

Consolidated Statement of Income   1Q22   4Q22   1Q23   D
        1Q23 vs. 4Q22 1Q23 vs. 1Q22
Interest income   3,759.8   6,143.6   7,008.3   14.1% 86.4%
Interest expense   1,679.2   4,378.4   5,459.5   24.7% 225.1%
Net interest income   2,080.6   1,765.2   1,548.8   -12.3% -25.6%
Loans and other accounts receivable   807.3   841.7   920.5   9.4% 14.0%
Other financial assets   18.9   (0.4)   (0.3)   -30.6% -101.5%
Recovery of charged-off financial assets   (130.8)   (188.3)   (133.7)   -29.0% 2.2%
Net impairment loss on financial assets   695.4   653.0   786.5   20.4% 13.1%
Net income from commissions and fees   710.0   749.7   842.3   12.4% 18.6%
Gross profit from sales of goods and services   1,020.6   918.1   1,163.6   26.7% 14.0%
Net trading income   (287.3)   609.0   (81.3)   -113.3% -71.7%
Net income from other financial instruments mandatory at FVTPL   73.9   68.2   93.9   37.7% 27.1%
Total other income   793.3   (327.9)   875.9   N.A 10.4%
Total other expenses   1,679.5   2,101.0   2,077.0   -1.1% 23.7%
Net income before income tax expense   2,016.2   1,028.3   1,579.8   53.6% -21.6%
Income tax expense   633.0   526.3   532.6   1.2% -15.9%
Net income for the period of continued operations   1,383.2   502.0   1,047.3   108.6% -24.3%
Net income for the period of discontinued operations   1,597.5   (929.4)   -   -100.0% -100.0%
Net income for the period   2,980.8   (427.5)   1,047.3   N.A -64.9%
Non-controlling interest   1,251.1   (97.1)   622.2   N.A -50.3%
Net income attributable to owners of the parent   1,729.7   (330.4)   425.1   -228.7% -75.4%

 

1. Net Interest Income

 

Net interest income   1Q22   4Q22   1Q23   D
        1Q23 vs. 4Q22 1Q23 vs. 1Q22
Interest income                  
Commercial   1,456.9   2,927.2   3,382.1   15.5% 132.1%
Interbank and overnight funds   68.6   222.6   375.0   68.4% N.A.
Consumer   1,559.8   2,016.5   2,178.6   8.0% 39.7%
Mortgages and housing leases   278.0   383.8   408.4   6.4% 46.9%
Microcredit   16.6   16.4   17.3   5.7% 4.1%
Loan portfolio   3,379.8   5,566.5   6,361.4   14.3% 88.2%
Interests on investments in debt securities   380.0   577.0   646.9   12.1% 70.2%
Total interest income   3,759.8   6,143.6   7,008.3   14.1% 86.4%
Interest expense                  
Checking accounts   29.9   61.5   62.5   1.5% 108.9%
Time deposits   544.2   1,591.1   2,216.4   39.3% N.A.
Savings deposits   407.9   1,402.7   1,591.8   13.5% 290.2%
Total interest expenses on deposits   982.0   3,055.3   3,870.6   26.7% 294.1%
Interbank borrowings and overnight funds   76.5   308.7   395.9   28.3% N.A.
Borrowings from banks and others   124.5   357.6   487.7   36.4% 291.8%
Bonds issued   466.9   549.1   562.6   2.5% 20.5%
Borrowings from development entities   29.3   107.7   142.6   32.4% N.A.
Total interest expenses on financial obligations   697.1   1,323.1   1,588.9   20.1% 127.9%
Total interest expense   1,679.2   4,378.4   5,459.5   24.7% 225.1%
Net interest income   2,080.6   1,765.2   1,548.8   -12.3% -25.6%

 

14 

 

Report of 1Q2023 consolidated results

Information reported in Ps billions and under IFRS

 

 

Our net interest income decreased by 25.6% to Ps 1,548.8 billion for 1Q23 versus 1Q22 and by 12.3% versus 4Q22. The decrease versus 1Q222 was derived mainly from a 86.4% increase in total interest income offset by a 225.1% increase in total interest expense.

 

Our Net Interest Margin(*) was 3.7% for 1Q23, 3.5% for 4Q22, and 4.1%(1) in pro forma 1Q22. Net Interest Margin o Loans was 3.6% for 1Q23, 4.1% for 4Q22, and 5.1%(1) for pro forma 1Q22. On the other hand, our Net Investments Margin was 4.2% for 1Q23, 1.0% for 4Q22 and 0.6%(1) for pro forma 1Q22.

 

2.  Impairment loss on financial assets, net

 

Our impairment loss on financial assets, net increased by 13.1% to Ps 786.5 billion for 1Q23 versus 1Q22 and by 20.4% versus 4Q22.

 

Net impairment loss on financial assets   1Q22   4Q22   1Q23   D
        1Q23 vs. 4Q22 1Q23 vs. 1Q22
Loans and other accounts receivable   807.3   841.7   920.5   9.4% 14.0%
Other financial assets   18.9   (0.4)   (0.3)   -30.6% -101.5%
Recovery of charged-off financial assets   (130.8)   (188.3)   (133.7)   -29.0% 2.2%
Net impairment loss on financial assets   695.4   653.0   786.5   20.4% 13.1%

  

Our annualized gross cost of risk was 2.0% for 1Q23, 1.9% for 4Q22, and 2.1%(1) for pro forma 1Q22. Net of recoveries of charged-off assets our ratio was 1.7% for 1Q23 and 1Q22, and 1.5% for 4Q22.

 

 

 

 

 

(*) Grupo Aval’s NIM without income from trading securities and investment in debt securities designated at fair value through profit and loss (non compliant with SPPI test) was 2.8% for 1Q23, 3.3% for 4Q22, and 4.4% for proforma 1Q22 .

(1) Pro-forma ratios for 1Q22 are based on reported revenues and expenses, associated to each ratio; however, the denominators averages used to calculate these ratios contain pro-forma figures from previous quarters.

 

15 

 

Report of 1Q2023 consolidated results

Information reported in Ps billions and under IFRS

 

3. Non-interest income

 

Total non-interest income   1Q22   4Q22   1Q23   D
        1Q23 vs. 4Q22 1Q23 vs. 1Q22
Income from commissions and fees                  
Banking fees   564.6   663.4   664.4   0.1% 17.7%
Trust activities   83.9   95.8   122.9   28.3% 46.5%
Pension and severance fund management   303.7   179.9   250.0   39.0% -17.7%
Bonded warehouse services   43.0   50.3   47.3   -6.0% 10.2%
Total income from commissions and fees   995.1   989.4   1,084.5   9.6% 9.0%
Expenses from commissions and fees   285.0   239.8   242.2   1.0% -15.0%
Net income from commissions and fees   710.0   749.7   842.3   12.4% 18.6%
                   
Income from sales of goods and services   2,667.9   3,200.7   2,927.5   -8.5% 9.7%
Costs and expenses from sales of goods and services   1,647.3   2,282.6   1,763.8   -22.7% 7.1%
Gross profit from sales of goods and services   1,020.6   918.1   1,163.6   26.7% 14.0%
                   
Total trading investment income   (18.3)   201.7   591.0   193.0% N.A
Total derivatives income   (269.1)   407.3   (672.3)   -265.0% 149.8%
Net trading income   (287.3)   609.0   (81.3)   -113.3% -71.7%
Net income from other financial instruments mandatory at FVTPL   73.9   68.2   93.9   37.7% 27.1%
                   
Other income                  
Foreign exchange gains (losses), net   369.2   (540.5)   488.5   -190.4% 32.3%
Net gain on sale of investments and OCI realization   (2.6)   (112.4)   27.5   -124.5% N.A
Gain on the sale of non-current assets held for sale   3.9   2.0   1.1   -46.8% -72.9%
Income from non-consolidated investments   203.3   91.4   214.5   134.8% 5.5%
Net gains on asset valuations   0.3   28.9   0.0   -100.0% -96.8%
Other income from operations   219.2   202.7   144.2   -28.9% -34.2%
Total other income   793.3   (327.9)   875.9   N.A 10.4%
                   
Total non-interest income   2,310.5   2,017.2   2,894.5   43.5% 25.3%

 

(1) Includes commissions on banking services, office network services, credit and debit card fees, fees on drafts, checks and checkbooks and other fees

(2) Includes share of profit of equity accounted investees, net of tax, and dividend income.

 

3.1  Net income from commissions and fees

 

Net income from commissions and fees for 1Q23 totaled Ps 842.3 billion and increased by 18.6% versus 1Q22 and by 12.4% versus 4Q22. Income from commissions and fees increased by 9.0% to Ps 1,084.5 billion for 1Q23 versus 1Q22 and increased by 9.6% versus 4Q22.

 

3.2  Gross profit from sales of goods and services

 

Gross profit from sales of goods and services (non-financial sector) increased by 14.0% to Ps 1,163.6 billion for 1Q23 versus 1Q22 and 26.7% versus 4Q22, the yearly increase was due to a strong contribution from the infrastructure sector and an increase in the energy and gas sectors and infrastructure sector explain the quarterly increase.

 

16 

 

Report of 1Q2023 consolidated results

Information reported in Ps billions and under IFRS

 

3.3 Net trading income and other income

 

Other income   1Q22   4Q22   1Q23   D
        1Q23 vs. 4Q22 1Q23 vs. 1Q22
Total derivatives income   (269.1)   407.3   (672.3)   -265.0% -149.8%
                   
Foreign exchange gains (losses), net   369.2   (540.5)   488.5   190.4% 32.3%
                   
Derivatives and foreign exchange gains (losses), net (1)   100.1   (133.2)   (183.7)   -38.0% -283.5%
                   
Net gains on asset valuations   0.3   28.9   0.0   -100.0% -96.8%
Net income from other financial instruments mandatory at FVTPL   73.9   68.2   93.9   37.7% 27.1%
Net gain on sale of investments and OCI realization   (2.6)   (112.4)   27.5   124.5% N.A
Gain on the sale of non-current assets held for sale   3.9   2.0   1.1   -46.8% -72.9%
Income from non-consolidated investments   203.3   91.4   214.5   134.8% 5.5%
Other income from operations   219.2   202.7   144.2   -28.9% -34.2%
                   
Total other income from operations   598.1   147.6   297.6   101.5% -50.3%

 

Total other income for 1Q23 totaled Ps 297.6 billion, the 50.3% yearly decrease was due to derivative and foreign exchange losses, net. The quarterly increase was 101.5% due to the 134.8% growth in other income from non- consolidated investments and dividends.

 

4.  Other expenses

 

Total other expenses for 1Q23 totaled Ps 2,077.0 billion and increased by 23.7% versus 1Q22, taxes contributed with 1/3 of the yearly increased and decreased by 1.1% versus 4Q22. Our efficiency ratio measured as total other expenses to total income was 46.7% in 1Q23, 55.5% in 4Q22 and 38.2% in 1Q22. The ratio of annualized total other expenses as a percentage of average total assets was 2.8% for 1Q23 and 2.9% for 4Q22, and 2.6% for pro forma 1Q22(1).

 

5.  Non-controlling Interest

 

Non-controlling interest in Grupo Aval mainly reflects the minority stakes that third party shareholders hold in each of its direct consolidated subsidiaries (Banco de Bogotá, Banco de Occidente, Banco Popular, Banco AV Villas, Corficolombiana and Porvenir).

 

Non-controlling interest in the income statement was Ps 622.2 billion, showing a 50.3% decrease versus 1Q22 and a 741.0% increase versus 4Q22. In addition, the ratio of non-controlling interest to income before non-controlling interest was 59.4% in 1Q23, 22.7% in 4Q22 and 31.0% in 1Q22.

 

 

 

(1) Pro-forma ratios for 1Q22 are based on reported revenues and expenses, associated to each ratio; however, the denominators averages used to calculate these ratios contain pro-forma figures from previous quarters.

 

17 

 

Report of 1Q2023 results

Information reported in Ps billions and under IFRS

 

RISK MANAGEMENT

 

During the first quarter of 2023, there were no material changes in the degree of exposure to the relevant risks disclosed in the report as of December 2022, nor have new relevant risks been identified that merit disclosure as of March 31st , 2023, according to the instructions given in paragraph 8.4.1.2.1 of Exhibit 1 «Información periódica de los emisores» in Chapter I of Title V of Part III of the Basic Legal Circular Jurídica «Registro Nacional de Valores y Emisores – RNVE.

 

QUANTITATIVE AND QUALITATIVE ANALYSIS OF MARKET RISK

 

During the first quarter of 2023, there were no material qualitative and quantitative changes in market risk in comparison with the information reported in the report as of December 2022, that merit disclosure as of March 31st , 2023, in accordance with the instructions given in paragraph 8.4.1.1.4 of Exhibit 1 «Información periódica de los emisores» in Chapter I of Title V of Part III of the Basic Legal Circular «Registro Nacional de Valores y Emisores – RNVE

 

CORPORATE GOVERNANCE

 

In terms of Corporate Governance, during this quarter there have been no material changes that should be reported.

 

ESG

 

In terms of ESG, during this quarter there have been no material changes that should be reported.

 

18 

 

Report of 1Q2023 consolidated results

Information reported in Ps billions and under Colombian IFRS

 

GRUPO AVAL ACCIONES Y VALORES S.A.

 

Separate Financial Statements

 

Below, we present a summary of our financial statements at the separate level by the end of the first quarter of 2023. The results presented are in accordance with the Colombian International Financial Reporting Standards (Colombian IFRS). The information reported below is expressed in Colombian Pesos (Ps) billion, except where otherwise indicated.

 

Assets

 

The assets are mainly represented by the interests we have in Banco de Bogotá (68.9%), Banco de Occidente (72.3%), Banco Popular (93.7%), Banco AV Villas (79.9%), AFP Porvenir (20.0%), Corficolombiana (8.7%) and 100.0% of Grupo Aval Ltd. (GAL).

 

Total assets as of March 31, 2023 amounted to Ps 20,743.5, increasing 12.2% or Ps 2,256.5 trillion compared to assets as of March 31, 2022 and 3.5% or Ps 465.9 compared to assets as of December 31, 2022.

 

The annual variation is mainly explained by the increase of Ps 191.0 in the balance of investments in associates and joint ventures as a result of (i) the recognition of the share of profit of equity accounted investees (Equity method) for Ps 1,234.2, (ii) the decrease in the value of our investments related to the dividends declared by our subsidiaries for Ps 1,032.2 at the end of March 31, 2023 and (iii) a decrease of Ps 57.9 in the equity method surplus, recognized in the line of other interests in equity. Additionally, an increase of Ps 2,052.8 was recorded in the balance of accounts receivable from related parties, explained by (i) the credit operation disbursed to related parties in December 2022 and which as of March 31, 2023 amounted to Ps 1,462.1 and (ii) an increase of Ps 585.9 in dividends receivable from our subsidiaries. Dividends receivable are driven by the cash dividend decreed by Banco de Bogotá in favor of its shareholders, given that in 2022 dividends receivable in shares were accounted in April.

 

On a quarterly basis, the variation is mainly explained by the recognition of the share of profit of equity (Equity method) of Ps 412.5 and (iii) a recovery of Ps 325.4 in the surplus by the equity method, explained mostly by a recovery of other comprehensive income (OCI) of fixed income investments at fair value through OCI (FVOCI) of our subsidiaries. The portion denominated in dollars of the credit operation with related parties registered a FX adjustment effect of Ps (44.3), in line with the behavior of the exchange rate (Tasa Representativa del Mercado - TRM) in the quarter. After the general shareholders' meetings of our subsidiaries, there was a reduction of Ps 1,032.2 in the value of investments in associates and joint ventures and an increase of Ps 933.3 in dividends receivable, recorded in accounts receivable with related parties.

 

Liabilities

 

Total liabilities as of March 31, 2023 amounted to Ps 4,050.9, increasing Ps 2,259.2 from the liabilities as of March 31, 2022 and Ps 976.2 with respect to the liabilities as of December 31, 2022.

 

19 

 

Report of 1Q2023 consolidated results

Information reported in Ps billions and under Colombian IFRS

 

Below, we present a summary of our financial statements at the separate level by the end of the first quarter of 2023. The results presented are in accordance with the Colombian International Financial Reporting Standards (Colombian IFRS). The information reported below is expressed in Colombian Pesos (Ps) billion, except where otherwise indicated.

 

The annual variation is mainly explained by (i) the increase of Ps 1,243.7 in the balance of financial obligations at amortized cost, mainly explained by the credit of US$270 million that GAL granted us in December 2022 to fund a portion of the credit extended to related parties (at the end of March 31, 2023, the credit with GAL amounted to Ps 1,260.4) and (ii) the increase of Ps 1,026.6 in dividends payable as a result of the dividend declared by Grupo Aval on March 30, 2023.

 

Regarding the quarterly variation, this is mainly explained by (i) an increase of Ps 1,024.2 in dividends payable and (ii) a FX adjustment effect of the credit with GAL for Ps (44.3). The financial indebtedness of Grupo Aval did not present material changes compared to what was reported as of December 31, 2022.

 

Equity

 

As of March 31, 2023, shareholders' equity was Ps 16,692.6, stable compared to that reported on March 31, 2022 and decreasing 1.9% or Ps 269.7 from the equity reported as of December 31, 2022. This movement reflects mainly the movement at the level of profits, dividends and surplus by equity method. The annual shareholder´s meeting held on March 30, 2023 decided to appropriate profits for the year 2022 for Ps 1,515.5 and decree cash dividends at the rate of Ps 3.60 per share per month, payable between April 2023 and March 2024, equivalent to Ps 1,025.7. In addition, the most relevant movements within equity when compared to the balance as of March 31, 2022 are (i) profits for Ps 1,255.6, (ii) dividends declared in shares in March and paid in cash in May on 2021 earnings for Ps 119.4, (iii) a reduction of Ps 57.9 in the surplus from the equity method and (iv) the effect on retained earnings of the tax reform (Decree 2617 of 2022) for Ps (36.3). On the other hand, the most relevant movements in the quarter are (i) profits for Ps 415.9 and (ii) the recovery of Ps 325.4 in the surplus from the equity method.

 

Net Income

 

Net income in our separate financial statements is derived primarily from equity method income from our investments and other income, net of the Holding's operating, financial and tax expenses.

 

During the first quarter of 2023 we presented a net profit from continuing operations of Ps 415.9, decreasing Ps 214.9 compared to the same period in 2022. For the first quarter of 2022 we recorded profits from discontinued operations of Ps 1,100.7. Net earnings per share from continuing operations decreased from Ps 28.3 pesos in the first quarter of 2022 to Ps 17.5 pesos in the first quarter of 2023.

 

20 

 

Report of 1Q2023 consolidated results

Information reported in Ps billions and under Colombian IFRS

 

The decrease in profits from continuing operations is explained by a lower equity method income of Ps 218.2. This is mostly explained by the reduction in profits contributed by our banking subsidiaries, which continue to experience pressure on their intermediation margins as a result of the rapid increase in interest rates from the Central Bank (Banco de la República) throughout 2022. On the other hand, a better environment in the local and international capital markets has been reflected in a recovery of the profitability of the investment portfolios of our subsidiaries.

 

Net income from continuing operations other than equity method ended the quarter at Ps 3.4, improving Ps 3.3 compared to the same period in 2022. Positive variations presented during the period include (i) higher income from ordinary activities for Ps 44.2, related to an increase of Ps 33.7 in financial returns from the credit operation with related parties, an increase of Ps 8.3 or 11.7% in fee income and an increase of Ps 2.3 in interest income and (ii) a decrease of Ps 14.0 in net expenses. The net effect between the operation with related parties and its corresponding funding with GAL contributes to an increase of Ps 12.8 in revenues compared to the same quarter of last year.

 

21 

 

Report of 1Q2023 consolidated results

Information reported in Ps billions and under IFRS

 

Information related to Grupo Aval Acciones y Valores S.A. (Holding Company) and Grupo Aval Limited

 

The holding company recorded a total gross indebtedness of Ps 1,648.7 billion (Ps 509.9 billion of bank debt and Ps 1,138.8 billion of bonds denominated in Colombian pesos) as of March 31st 2023. It also guarantees irrevocably and unconditionally Grupo Aval Limited’s (144A / Reg S) 2030 (USD 1.0 billion) bonds under its respective indentures. As of March 31st 2023, the total amount outstanding (including interests payable) of such bonds was USD 1.0 billion, or Ps 4,644.9 billion when converted into pesos.

 

The debt at Grupo Aval Limited is serviced with interest income on loans to subsidiaries and cash & cash equivalents. Grupo Aval Limited has not required, to this date, cash from Grupo Aval Acciones y Valores S.A. to fulfill its obligations. The main sources of cash to pay the debt and debt service at Grupo Aval Acciones y Valores S.A. have been the dividend income from its subsidiaries and the returns on its cash & cash equivalents.

 

When combined, Grupo Aval Acciones y Valores S.A. and Grupo Aval Ltd. had Ps 479.9 billion of total liquid assets, a total gross indebtedness of Ps 6,293.6 billion and a net indebtedness of Ps 5,813.7 billion as of March 31st 2023. In addition to liquid assets, has Ps 1,454.4 billion in loans with related parties and Grupo Aval Ltd. has Ps 2,427.4 billion in investments in AT1 instruments.

 

Total liquid assets as of March 31, 2023
Cash and cash equivalents 335.9
Fixed income investments 144.0
Total liquid assets 479.9

 

      

As of March 31st 2023 our combined double leverage (calculated as investments in subsidiaries at book value, subordinated loans to subsidiaries, AT1 investments, and goodwill as a percentage of shareholders' equity) was 1.27x. Finally, we present an evolution of our key ratios on a combined basis:

 

Debt service coverage and leverage ratios   1Q22   4Q22   1Q23   D
        1Q23 vs. 4Q22 1Q23 vs. 1Q22
Double leverage (1)   1.22x   1.27x   1.27x   0.00 0.05
Net debt / Core earnings (2)(3)   4.59x   9.03x   6.21x   -2.82 1.61
Net debt / Cash dividends (2)(3)   6.21x   16.26x   14.73x   -1.53 8.52
Core Earnings / Interest Expense (2)   3.09x   1.51x   2.06x   0.55 -1.03

 

(1) Double leverage is calculated as investments in subsidiaries at book value (excluding revaluations), subordinated loans to subsidiaries and goodwill as a percentage of shareholders' equity; (2) Core earnings are defined as annualized recurring cash flow from dividends, investments and net operating income;

(3) Net debt is calculated as total gross debt minus cash and cash equivalents and fixed income investments

 

22 

 

Report of 1Q2023 consolidated results

Information reported in Ps billions and under IFRS

 

Grupo Aval Acciones y Valores S.A.

Consolidated Financial Statements Under IFRS

Financial Statements Under IFRS

Information in Ps. Billions

 

Consolidated Statement of Financial Position    1Q22    4Q22    1Q23   D
        1Q23 vs. 4Q22 1Q23 vs. 1Q22
                   
Cash and cash equivalents   16,407.1   17,032.9   19,327.8   13.5% 17.8%
                   
Investment and trading assets                  
Debt securities   3,247.3   3,760.9   5,145.6   36.8% 58.5%
Equity securities   5,254.7   6,039.1   6,525.1   8.0% 24.2%
Derivative assets   1,344.8   2,041.4   1,914.8   -6.2% 42.4%
Trading assets   9,846.7   11,841.4   13,585.5   14.7% 38.0%
Investments in debt securities at FVTPL (non compliant with SPPI test)   -   1.4   1.4   -0.6% N.A
Investments in securities at FVOCI   23,964.9   23,938.5   22,178.1   -7.4% -7.5%
Investments in debt securities at AC   7,585.4   9,734.6   9,789.6   0.6% 29.1%
Investment securities   31,550.3   33,674.5   31,969.1   -5.1% 1.3%
Hedging derivatives assets   53.8   20.9   35.1   68.3% -34.7%
                   
Gross loans                  
Commercial loans   95,591.4   110,742.8   110,049.8   -0.6% 15.1%
Commercial loans   91,006.7   104,775.1   106,129.9   1.3% 16.6%
Interbank & overnight funds   4,584.7   5,967.7   3,920.0   -34.3% -14.5%
Consumer loans   51,984.3   59,419.4   60,186.9   1.3% 15.8%
Mortgages loans   15,010.3   17,883.4   18,026.1   0.8% 20.1%
Microcredit loans   292.6   267.7   267.6   0.0% -8.5%
Total gross loans   162,878.7   188,313.4   188,530.4   0.1% 15.7%
Loss allowance   (8,824.2)   (9,197.5)   (9,427.5)   2.5% 6.8%
Total loans, net   154,054.5   179,115.8   179,102.9   0.0% 16.3%
                   
Other accounts receivable, net   19,587.4   23,380.6   24,384.5   4.3% 24.5%
Non-current assets held for sale   147.2   92.8   100.1   7.9% -32.0%
Investments in associates and joint ventures   4,356.9   1,423.3   1,191.4   -16.3% -72.7%
                   
Own-use property, plant and equipment for own-use and given in operating lease, net   4,593.0   4,730.2   4,695.6   -0.7% 2.2%
Right-of-use assets   1,362.0   1,329.6   1,382.7   4.0% 1.5%
Investment properties   894.5   963.0   956.5   -0.7% 6.9%
Biological assets   153.8   212.6   213.1   0.2% 38.5%
Tangible assets   7,003.4   7,235.4   7,247.8   0.2% 3.5%
                   
Goodwill   2,220.5   2,248.2   2,232.2   -0.7% 0.5%
Concession arrangement rights   11,338.9   13,242.7   13,536.2   2.2% 19.4%
Other intangible assets   1,687.2   2,040.2   2,082.7   2.1% 23.4%
Intangible assets   15,246.5   17,531.1   17,851.1   1.8% 17.1%
                   
Current   983.7   1,782.7   1,950.1   9.4% 98.2%
Deferred   1,406.4   1,851.2   1,525.4   -17.6% 8.5%
Income tax assets   2,390.1   3,633.9   3,475.5   -4.4% 45.4%
                   
Other assets   480.1   608.6   607.4   -0.2% 26.5%
Total assets   261,124.1   295,591.2   298,878.2   1.1% 14.5%
                   
                   
Trading liabilities   1,360.4   1,757.6   1,517.6   -13.7% 11.6%
Hedging derivatives liabilities   52.6   3.6   5.6   55.7% -89.4%
                   
Customer deposits   152,708.1   173,341.1   178,352.4   2.9% 16.8%
Checking accounts   28,216.9   25,932.1   23,959.4   -7.6% -15.1%
Time deposits   53,221.1   72,273.7   85,133.4   17.8% 60.0%
Savings deposits   70,967.2   74,293.9   68,331.2   -8.0% -3.7%
Other deposits   302.9   841.5   928.3   10.3% N.A.
Financial obligations   62,778.9   72,116.8   70,038.5   -2.9% 11.6%
Interbank borrowings and overnight funds   11,156.8   9,087.9   8,799.8   -3.2% -21.1%
Borrowings from banks and others   17,937.9   30,309.4   29,346.9   -3.2% 63.6%
Bonds issued   30,414.2   28,362.2   27,352.4   -3.6% -10.1%
Borrowings from development entities   3,270.0   4,357.3   4,539.5   4.2% 38.8%
Total financial liabilities at amortized cost   215,487.1   245,457.9   248,390.9   1.2% 15.3%
                   
Legal related   252.0   229.2   228.0   -0.5% -9.5%
Other provisions   844.4   998.0   914.0   -8.4% 8.2%
Provisions   1,096.4   1,227.2   1,142.0   -6.9% 4.2%
                   
Current   245.6   228.8   319.8   39.8% 30.2%
Deferred   4,186.6   5,062.7   5,244.3   3.6% 25.3%
Income tax liabilities   4,432.2   5,291.5   5,564.2   5.2% 25.5%
Employee benefits   950.6   890.0   886.9   -0.4% -6.7%
Other liabilities   8,144.3   10,141.8   11,144.0   9.9% 36.8%
Total liabilities   231,523.5   264,769.6   268,651.1   1.5% 16.0%
                   
Equity attributable to owners of the parent   16,230.3   16,467.0   16,175.7   -1.8% -0.3%
Non-controlling interest   13,370.3   14,354.7   14,051.3   -2.1% 5.1%
Total equity   29,600.6   30,821.7   30,227.0   -1.9% 2.1%
                   
Total liabilities and equity   261,124.1   295,591.2   298,878.2   1.1% 14.5%

 

23 

 

Report of 1Q2023 consolidated results

Information reported in Ps billions and under IFRS

 

Grupo Aval Acciones y Valores S.A.

Consolidated Financial Statements Under IFRS

Financial Statements Under IFRS

Information in Ps. Billions

 

Consolidated Statement of Income    1Q22    4Q22    1Q23   D
        1Q23 vs. 4Q22 1Q23 vs. 1Q22
Interest income                  
Loan portfolio   3,379.8   5,566.5   6,361.4   14.3% 88.2%
Interests on investments in debt securities   380.0   577.0   646.9   12.1% 70.2%
Total interest income   3,759.8   6,143.6   7,008.3   14.1% 86.4%
                   
Interest expense                  
Checking accounts   29.9   61.5   62.5   1.5% 108.9%
Time deposits   544.2   1,591.1   2,216.4   39.3% 307.3%
Savings deposits   407.9   1,402.7   1,591.8   13.5% 290.2%
Total interest expenses on deposits   982.0   3,055.3   3,870.6   26.7% 294.1%
                   
Interbank borrowings and overnight funds   76.5   308.7   395.9   28.3% N.A.
Borrowings from banks and others   124.5   357.6   487.7   36.4% 291.8%
Bonds issued   466.9   549.1   562.6   2.5% 20.5%
Borrowings from development entities   29.3   107.7   142.6   32.4% 386.2%
Total interest expenses on financial obligations   697.1   1,323.1   1,588.9   20.1% 127.9%
Total interest expense   1,679.2   4,378.4   5,459.5   24.7% 225.1%
Net interest income   2,080.6   1,765.2   1,548.8   -12.3% -25.6%
                   
Impairment losses (recoveries) on financial assets                  
Loans and other accounts receivable   807.3   841.7   920.5   9.4% 14.0%
Other financial assets   18.9   (0.4)   (0.3)   -30.6% -101.5%
Recovery of charged-off financial assets   (130.8)   (188.3)   (133.7)   -29.0% 2.2%
Net impairment loss on financial assets   695.4   653.0   786.5   20.4% 13.1%
Net interest income, after impairment losses   1,385.2   1,112.2   762.3   -31.5% -45.0%
                   
Income from commissions and fees                  
Banking fees(1)   564.6   663.4   664.4   0.1% 17.7%
Trust activities   83.9   95.8   122.9   28.3% 46.5%
Pension and severance fund management   303.7   179.9   250.0   39.0% -17.7%
Bonded warehouse services   43.0   50.3   47.3   -6.0% 10.2%
Total income from commissions and fees   995.1   989.4   1,084.5   9.6% 9.0%
Expenses from commissions and fees   285.0   239.8   242.2   1.0% -15.0%
Net income from commissions and fees   710.0   749.7   842.3   12.4% 18.6%
                   
Income from sales of goods and services   2,667.9   3,200.7   2,927.5   -8.5% 9.7%
Costs and expenses from sales of goods and services   1,647.3   2,282.6   1,763.8   -22.7% 7.1%
Gross profit from sales of goods and services   1,020.6   918.1   1,163.6   26.7% 14.0%
                   
Net trading income   (287.3)   609.0   (81.3)   -113.3% -71.7%
Net income from other financial instruments mandatory at FVTPL   73.9   68.2   93.9   37.7% 27.1%
                   
Other income                  
Foreign exchange gains (losses), net   369.2   (540.5)   488.5   -190.4% 32.3%
Net gain on sale of investments and OCI realization   (2.6)   (112.4)   27.5   -124.5% N.A
Gain on the sale of non-current assets held for sale   3.9   2.0   1.1   -46.8% -72.9%
Income from non-consolidated investments(2)   203.3   91.4   214.5   134.8% 5.5%
Net gains on asset valuations   0.3   28.9   0.0   -100.0% -96.8%
Other income from operations   219.2   202.7   144.2   -28.9% -34.2%
Total other income   793.3   (327.9)   875.9   N.A 10.4%
                   
Other expenses                  
Loss on the sale of non-current assets held for sale   0.3   0.3   0.2   -42.2% -43.2%
Personnel expenses   680.0   753.9   773.4   2.6% 13.7%
General and administrative expenses   797.9   1,090.7   1,087.2   -0.3% 36.3%
Depreciation and amortization   155.5   167.4   166.6   -0.5% 7.1%
Impairment loss on other assets   10.5   1.0   0.4   -63.0% -96.4%
Other operating expenses   35.2   87.7   49.2   -43.9% 40.0%
Total other expenses   1,679.5   2,101.0   2,077.0   -1.1% 23.7%
                   
Net income before income tax expense   2,016.2   1,028.3   1,579.8   53.6% -21.6%
Income tax expense   633.0   526.3   532.6   1.2% -15.9%
Net income for the period of continued operations   1,383.2   502.0   1,047.3   108.6% -24.3%
Net income for the period of discontinued operations   1,597.5   (929.4)   -   -100.0% -100.0%
Net income for the period   2,980.8   (427.5)   1,047.3   N.A -64.9%
                   
Net income for the period attibutable to:                  
                   
Non-controlling interest   1,251.1   (97.1)   622.2   N.A -50.3%
                   
Net income attributable to owners of the parent   1,729.7   (330.4)   425.1   N.A -75.4%

 

(1) Includes commissions on banking services, office network services, credit and debit card fees, fees on drafts, checks and checkbooks and other fees

(2) Includes share of profit of equity accounted investees, net of tax, and dividend income.

 

24 

 

Report of 1Q2023 consolidated results

Information reported in Ps billions and under Colombian IFRS

 

GRUPO AVAL ACCIONES Y VALORES S.A.

Separate Financial Statements 

Financial Statements Under Colombian IFRS

Information in Ps. Billions

 

Separate Statement of Financial Position    1Q22    4Q22    1Q23   D
        1Q23 vs. 4Q22 1Q23 vs. 1Q22
                   
Current assets                  
                   
Cash and cash equivalents   151.7   67.4   166.1   146.2% 9.4%
Trading securities   0.1   0.8   0.2   -74.6% 56.5%
Accounts receivable from related parties   438.2   96.1   1,029.9   N.A. 135.0%
Taxes paid in advance   0.0   7.6   6.9   -9.3% N.A
Other accounts receivable   0.2   0.2   0.0   -91.3% -91.4%
Other non-financial assets   0.0   0.1   0.1   90.4% 182.9%
Total current assets   590.2   172.1   1,203.1   N.A. 103.8%
                   
Non-current Assets                  
Investments in subsidiaries and associates   17,891.6   18,361.9   18,082.6   -1.5% 1.1%
Accounts receivable from related parties   0.0   1,498.8   1,454.4   -3.0% N.A
Property and equipment, net   5.1   4.1   3.2   -20.6% -35.8%
Deferred tax assets   0.1   0.1   0.1   -2.4% 4.2%
Total non-current Assets   17,896.8   19,864.9   19,540.4   -1.6% 9.2%
Total assets   18,487.0   20,037.0   20,743.5   3.5% 12.2%
                   
Liabilities and shareholders' equity                  
Current liabilities                  
Borrowings at amortized cost   7.5   20.3   21.0   3.8% 179.1%
Outstanding bonds at amortized cost   9.6   14.1   14.3   1.3% 48.3%
Accounts payable   104.2   106.1   1,129.6   N.A. N.A.
Employee benefits   2.2   2.5   2.3   -6.6% 4.0%
Tax liabilities   17.1   11.9   8.6   -27.5% -49.4%
Other non-financial liabilities   1.2   1.2   1.2   0.0% 0.0%
Total current liabilities   141.9   156.1   1,177.1   N.A. N.A.
                   
Long-term liabilities                  
Borrowings at amortized cost   525.3   1,794.1   1,749.3   -2.5% N.A.
Outstanding bonds   1,124.5   1,124.5   1,124.5   0.0% 0.0%
Total long-term liabilities   1,649.8   2,918.6   2,873.8   -1.5% 74.2%
Total liabilities   1,791.7   3,074.7   4,050.9   31.8% 126.1%
                   
Shareholders' equity                  
Subscribed and paid capital   22.3   23.7   23.7   0.0% 6.6%
Additional paid-in capital   8,612.9   9,695.2   9,695.2   0.0% 12.6%
Retained earnings   7,182.6   5,939.4   7,469.6   25.8% 4.0%
Earnings from first-time adoption   0.0   0.0   .   N.A N.A
Net income   1,731.5   2,541.2   415.9   -83.6% -76.0%
Other equity accounts   -854.0   -1,237.3   -911.9   -26.3% 6.8%
Total shareholders' equity   16,695.3   16,962.3   16,692.6   -1.6% 0.0%
                   
Total liabilities and shareholders' equity   18,487.0   20,037.0   20,743.5   3.5% 12.2%

 

GRUPO AVAL ACCIONES Y VALORES S.A.

Separate Financial Statements

Financial Statements Under Colombian IFRS

Information in Ps. Billions1Q23

 

Separate Statement of Financial Position   1Q22   4Q22   1Q23   D
        1Q23 vs. 4Q22 1Q23 vs. 1Q22
Operating revenue                  
Equity method income, net   630.7   219.0   412.5   88.4% -34.60%
Other revenue from ordinary activities   72.4   86.9   116.6   34.1% 61.12%
Total operating revenue   703.1   305.9   529.1   73.0% -24.7%
                   
Expenses, net                  
Administrative expenses   32.5   23.3   18.7   -19.7% -42.51%
Other expenses   0.0   3.1   -0.1   -103.2% N.A
Losses from exchange differences   0.0   0.0   -0.1   N.A. N.A.
Operating income   670.5   279.5   510.6   82.7% -23.8%
                   
Financial expenses   34.0   64.2   81.5   27.0% 139.53%
                   
Earnings before taxes   636.5   215.3   429.1   99.3% -32.6%
Income tax expense   5.7   9.5   13.2   38.6% 129.98%
                   
Net income from continuing operations   630.8   205.8   415.9   102.1% -34.1%
                102.1% -34.06%
Discontinued operations                  
Equity method income from discontinued operations   1,100.7   -504.1   0.0   -100.0% -100.00%
Income from discontinued operations   1,100.7   -504.1   0.0   -100.0% -100.00%
                   
Net income   1,731.5   -298.3   415.9   N.A -76.0%

 

25 

 

Report of 1Q2023 consolidated results

 

DEFINITIONS

 

Cost of Risk calculated as Impairment loss on loans and other accounts receivable net of recoveries of charged-off assets divided by average gross loans

 

Efficiency Ratio is calculated as total other expenses divided by net interest income plus net income from commissions and fees, gross profit from sales of goods and services, net trading income, net income from other financial instruments mandatory at FVTPL and total other income.

 

Fee income ratio is calculated as net income from commissions and fees divided by net interest income plus net income from commissions and fees, gross profit from sales of goods and services, net trading income, net income from other financial instruments mandatory at FVTPL and total other income.

 

Gross loans excludes interbank and overnight funds.

 

Interest Earning Assets are calculated as the sum of average gross loans, average interbanks and average investments.

 

Net Interest Income is the difference between Total Interest Income and Total Interest Expense.

 

Net Interest Margin includes net interest income plus net trading income from debt and equity investments at FVTPL divided by total average interest-earning assets.

 

NIM on Loans is calculated as Net Interest Income on Loans to Average loans and financial leases.

 

NIM on Investments is calculated as Net Interest income on fixed income securities, net trading income from equity and fixed income investment securities held for trading through profit and on interbank and overnight funds to Average securities and Interbank and overnight funds.

 

Non-controlling interest refers to the participation of minority shareholders in a subsidiary’s equity or net income.

 

ROAA is calculated as annualized Net Income divided by average of total assets.

 

ROAE is calculated as Net Income attributable to Aval's shareholders divided by average attributable shareholders' equity.

 

26 

 

Report of 1Q2023 consolidated results

 

Investor Relations Contact

 

INVESTORRELATIONS@grupoaval.com

 

Nicolás Noreña

Financial Controller Manager 

Tel: +571 743 32 22 x 23400

E-mail: nnorena@grupoaval.com

 

Simón Franky 

Strategic Planning and Investor Relations Analyst

Tel601 743 32 22 x 23351 

Email sfranky@grupoaval com

 

Silvana Palacio

Investor Relations Analyst 

Tel601 743 32 22 x 2337

Email mpalacio@grupoaval com

 

 

27 

 

 

EXHIBIT 1

CONSOLIDATED FINANCIAL STATEMENTS

 

 

 

Condensed Consolidated Statement of Financial Position

(Amounts expressed in millions of Colombian pesos)

 

          
   Notes  March 31, 2023  December 31, 2022
Assets             
Cash and cash equivalents     Ps.19,327,847   Ps.17,032,857 
Trading assets      13,585,464    11,841,407 
Investment securities      31,969,074    33,674,477 
Hedging derivative assets  4   35,108    20,854 
Loans, net  4   179,102,900    179,115,847 
Other accounts receivable, net  4   24,384,493    23,380,573 
Non-current assets held for sale      100,133    92,830 
Investments in associates and joint ventures  6   1,191,374    1,423,343 
Tangible assets  7   7,247,770    7,235,441 
Concessions arrangements rights  8   13,536,212    13,242,706 
Goodwill  9   2,232,238    2,248,217 
Other intangibles      2,082,686    2,040,158 
Income tax assets      3,475,495    3,633,876 
Other assets      607,366    608,650 
Total assets     Ps.298,878,160   Ps.295,591,236 
              
Liabilities and equity             
Liabilities             
              
Trading liabilities  4  Ps.1,517,550   Ps.1,757,606 
Hedging derivative liabilities  4   5,557    3,568 
Customer deposits  4   178,352,401    173,341,149 
Financial obligations  4   70,038,493    72,116,775 
Provisions  11   1,142,008    1,227,171 
Income tax liabilities      5,564,170    5,291,487 
Employee benefits  12   886,891    890,019 
Other liabilities  13   11,144,041    10,141,802 
Total liabilities     Ps.268,651,111   Ps.264,769,577 
              
Equity             
Owners of the parent:             
Subscribed and paid-in capital     Ps.23,744   Ps.23,744 
Additional paid-in capital      9,571,374    9,571,374 
Retained earnings      7,428,429    8,018,417 
Other comprehensive income      (847,847)   (1,146,565)
Equity attributable to owners of the parent      16,175,700    16,466,970 
Non-controlling interest      14,051,349    14,354,689 
Total equity      30,227,049    30,821,659 
Total liabilities and equity     Ps.298,878,160   Ps.295,591,236 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

 

 

Grupo Aval Acciones y Valores S.A. and Subsidiaries

Condensed Consolidated Statement of Income

(Amounts expressed in millions of Colombian pesos)

 

          
      For the three-months periods ended March 31,
   Notes  2023  2022 (1)
Continuing operations         
Interest income  4  Ps.7,008,324   Ps.3,759,791 
Interest expense  4   (5,459,500)   (1,679,180)
Net interest income      1,548,824    2,080,611 
              
Net impairment loss on financial assets      (786,489)   (695,422)
Net interest income, after impairment losses      762,335    1,385,189 
              
Income from commissions and fees      1,084,530    995,075 
Expenses from commissions and fees      (242,227)   (285,037)
Net income from commissions and fees  16   842,303    710,038 
              
Income from sales of goods and services      2,927,482    2,667,889 
Costs and expenses of sales goods and services      (1,763,843)   (1,647,296)
Net income from sales of goods and services  16   1,163,639    1,020,593 
              
Net trading loss  17   (81,280)   (287,345)
Net income from other financial instruments mandatorily at fair value through profit or loss      93,949    73,908 
Other income  18   875,870    793,284 
Other expenses  18   (2,077,011)   (1,679,474)
              
Net income before tax expense      1,579,805    2,016,193 
Income tax expense  10   (532,551)   (632,950)
Net income from continuing operations     Ps.1,047,254   Ps.1,383,243 
              
Discontinued operations             
Net income from discontinued operations  1.1  Ps.-   Ps.1,597,512 
              
Net income     Ps.1,047,254   Ps.2,980,755 
              
Net income attributable to owners of the parent             
Net income for the period from continuing operations      425,090    631,631 
Net income for the period from discontinued operations  1.1   -    1,098,073 
Owners of the parent     Ps.425,090   Ps.1,729,704 
              
Net income attributable to non-controlling interests             
Net income for the period from continuing operations      622,164    751,612 
Net income for the period from discontinued operations  1.1   -    499,439 
Non-controlling interests     Ps.622,164   Ps.1,251,051 
              
Net Income     Ps.1,047,254   Ps.2,980,755 
              
Net income per share basic and diluted (in Colombian pesos)  14  Ps.17.90   Ps.77.63 

 

(1)    See note 1.1 “Discontinued operations of BAC Holding”.

 

The accompanying notes are an integral part of the consolidated financial statements.

 

 

 

Grupo Aval Acciones y Valores S.A. and Subsidiaries

Condensed Consolidated Statement of Other Comprehensive Income

(Amounts expressed in millions of Colombian pesos)

 

          
      For the three-months periods ended March 31,
   Notes  2023  2022
          
Net income     Ps.1,047,254   Ps.2,980,755 
              
Other comprehensive income             
Items that may be reclassified to profit or loss             
Net gain (loss) on hedges of net investments in foreign operations             
Foreign currency translation differences from hedged foreign operations  5   (123,149)   (7,505,723)
Hedging derivative instrument  5   0    4,052,710 
Hedging non-derivative instrument  5   120,238    3,157,086 
Cash flow hedges      (3,114)   (5,702)
Foreign currency translation differences from unhedged foreign operations      (65,076)   1,032,865 
Investments in associates and joint ventures      594    (3,531)
Unrealized (losses) gains on securities at FVOCI      735,161    (1,132,971)
Income tax      (244,939)   (2,377,055)
Total, items that may be reclassified to profit or loss     Ps.419,715   Ps.(2,782,321)
              
Items that will not be reclassified to profit or loss             
(Losses) unrealized  on equity securities at FVOCI      (53,709)   (22,063)
Actuarial (losses) gains from defined benefit pension plans      (1)   33,627 
Income tax      (22)   (10,958)
Total, items that will not be reclassified to profit or loss     Ps.(53,732)  Ps.606 
              
Total other comprehensive income, net of taxes      365,983    (2,781,715)
Total comprehensive income     Ps.1,413,237   Ps.199,040 
              
Total comprehensive income for the periods attributable to:             
Owners of the Group      723,808    (140,083)
Non-controlling interest      689,429    339,123 
      Ps.1,413,237   Ps.199,040 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

 

 

Grupo Aval Acciones y Valores S.A. and Subsidiaries

Consolidated Statement of Changes in Equity for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in millions of Colombian pesos)

 

                      
   Subscribed and paid-in capital  Additional paid – in capital  Appropriated retained earnings  Other comprehensive income (OCI)  Equity attributable to owners of the parent  Non-controlling interest (NCI)  Total equity
Balance at December 31, 2020  Ps.22,281   Ps.8,490,799   Ps.13,383,391   Ps.1,117,182   Ps.23,013,653   Ps.16,457,994   Ps.39,471,647 
Issuance of shares   —    —    —    —    —    141    141 
Dividends declared in cash   —    —    —    —    —    (405,501)   (405,501)
Spin Off(1)   —    —    (6,638,961)   —    (6,638,961)   (3,019,613)   (9,658,574)
Effect of realization of equity instruments(1)   —    —    (5,318)   —    (5,318)   (2,428)   (7,746)
Other comprehensive income   —    —    —    (1,869,787)   (1,869,787)   (911,928)   (2,781,715)
Withholding Tax over dividends   —    —    1,006    —    1,006    566    1,572 
Net income   —    —    1,729,704    —    1,729,704    1,251,051    2,980,755 
Balance at March 31, 2022  Ps.22,281   Ps.8,490,799   Ps.8,469,822   Ps.(752,605)  Ps.16,230,297   Ps.13,370,282   Ps.29,600,579 

 

   Subscribed and paid-in capital  Additional paid – in capital  Appropriated retained earnings  Other comprehensive income (OCI)  Equity attributable to owners of the parent  Non-controlling interest (NCI)  Total equity
Balance at December 31, 2022  Ps.23,744   Ps.9,571,374   Ps.8,018,417   Ps.(1,146,565)  Ps.16,466,970   Ps.14,354,689   Ps.30,821,659 
Dividends declared in cash   —    —    (1,025,718)   —    (1,025,718)   (1,014,794)   (2,040,512)
Other comprehensive income   —    —    —    298,718    298,718    67,265    365,983 
Withholding Tax over dividends   —    —    10,640    —    10,640    22,025    32,665 
Net income   —    —    425,090    —    425,090    622,164    1,047,254 
Balance at March 31, 2023  Ps.23,744   Ps.9,571,374   Ps.7,428,429   Ps.(847,847)  Ps.16,175,700   Ps.14,051,349   Ps.30,227,049 

 

 

(1)    See note 1.1 “Discontinued operations of BAC Holding”.

 

The accompanying notes are an integral part of the consolidated financial statements.

 

 

 

Grupo Aval Acciones y Valores S.A. and Subsidiaries

Condensed Consolidated Statement of Cash Flows for the nine-month periods ended March 31, 2023and 2021

(Amounts expressed in millions of Colombian pesos)

 

          
   Notes  March 31, 2023  March 31, 2022 (1)
Cash flows from operating activities:         
Net income before income tax     Ps.1,579,805   Ps.2,016,193 
Reconciliation of net income before taxes and net cash provided by operating activities:             
Depreciation and amortization  16-18   279,584    263,210 
Impairment losses of loans and receivables, net  4-16   935,469    813,270 
Net income in concession agreements      (1,260,858)   (1,061,120)
Net interest income      (1,548,824)   (2,080,611)
Sales of non-current assets held for sale, net  18   (865)   (3,572)
Gain on sales of tangible assets      (5,025)   (9,015)
Foreign exchange losses  18   (488,545)   (369,186)
Share of profit of equity accounted investees, net of tax  18   (94,738)   (96,409)
Dividends caused  18   (119,767)   (106,882)
              
Fair value adjustments on:             
Derivatives  17   672,258    269,072 
Non-current assets held for sale      (142)   40 
Investment property      (47)   (801)
Biological assets      (3,156)   (1,624)
              
Changes in operating assets and liabilities:             
Derivatives      (804,470)   (121,005)
Trading assets      (1,883,400)   1,122,997 
Accounts receivable      (219,249)   10,221 
Other assets      (25,610)   (8,239)
Other liabilities and provisions      (654,362)   (1,498,646)
Employee benefit      (2,237)   9,721 
Loan portfolio      (1,598,740)   (9,035,473)
Customer deposits      5,553,614    6,443,976 
Interbank borrowings and overnight funds      (270,635)   841,853 
Borrowings from development entities      83,547    (981)
Borrowings from banks      (216,821)   588,455 
              
Interest received      6,139,939    3,355,371 
Interest paid      (4,755,112)   (1,571,307)
Lease interest      (45,541)   (37,243)
Income tax payments      (523,796)   (377,595)
Net cash provided (used) by operating activities     Ps.722,276   Ps.(645,330)
              
Cash flows from investing activities:             
Purchases of amortized cost financial assets     Ps.(967,134)  Ps.(814,206)
Redemptions of amortized cost financial assets      1,058,158    719,073 
Purchases of FVOCI      (5,144,385)   (3,723,789)
Proceeds from sales of FVOCI      7,578,151    3,930,005 
Acquisition of associates investment and join ventures      —    (2,667)
Purchases tangible assets      (89,791)   (57,761)
Proceeds from sales of property, plant and equipment      45,349    38,807 
Proceeds from sales of non-current assets held for sale      5,194    17,522 
Additions of concession arrangement rights      130,757    113,586 
Additions of other intangible assets      (115,887)   (86,008)
Dividends received      111,611    96,650 
(Decrease) to deconsolidation of subsidiaries      —    (17,570,390)
Net cash provided (used) in by investing activities     Ps.2,612,023   Ps.(17,339,178)
              
Cash flows from financing activities:             
Dividends paid to shareholders     Ps.(1,475)  Ps.(299,942)
Dividends paid to non-controlling interest      (67,965)   (158,848)
Issuance of debt securities      2,571,859    521,716 
Payment of outstanding debt securities      (3,057,617)   (345,083)
Leases      (100,444)   (91,878)
Issuance of shares      —    141 
Net cash used by financing activities     Ps.(655,642)  Ps.(373,894)
Effect of foreign currency changes on cash and equivalents      (383,667)   (483,748)
Decrease in cash and cash equivalents in joint operations      —    (1,393,602)
Increase (decrease) in cash and cash equivalents      2,294,990    (20,235,752)
Cash and cash equivalents at beginning of period     Ps.17,032,857   Ps.36,642,829 
Cash and cash equivalents at end of period     Ps.19,327,847   Ps.16,407,077 

(1)    See note 1.1 “Discontinued operations of BAC Holding”.

 

The accompanying notes are an integral part of the consolidated financial statements.

 

 

 

 

EXHIBIT 2  

SEPARATE FINANCIAL STATEMENTS

 

 

 

GRUPO AVAL ACCIONES Y VALORES S.A.

Statement of financial position 

For the period ended as of march 31st 2023 and december 31st 2022

(Stated in millions of Colombian pesos)

 

   March 31st  Decembre 31st
Assets  2023  2022
       
       
Current assets      
       
Cash and cash equivalents  Ps.166,066   Ps.67,439 
Trading securities   194    764 
Accounts receivable from related parties   1,029,853    96,081 
Taxes paid in advance   6,872    7,577 
Other accounts receivable   14    161 
Other non-financial assets   99    52 
Total current assets   1,203,098    172,074 
           
Non-current Assets          
           
Investments in subsidiaries and associates  Ps.18,082,615   Ps.18,361,916 
Accounts receivable from related parties   1,454,442    1,498,754 
Property and equipment, net   3,241    4,083 
Deferred tax assets   124    127 
Total non-current Assets   19,540,422    19,864,880 
Total assets  Ps.20,743,520   Ps.20,036,954 
           
           
           
Liabilities and shareholders' equity          
Current liabilities          
Borrowings at amortized cost  Ps.21,025   Ps.20,255 
Outstanding bonds at amortized cost   14,270    14,093 
Accounts payable   1,129,603    106,101 
Employee benefits   2,323    2,486 
Tax liabilities   8,639    11,920 
Other non-financial liabilities   1,214    1,214 
Total current liabilities   1,177,074    156,069 
           
Long-term liabilities          
Borrowings at amortized cost  Ps.1,749,301   Ps.1,794,089 
Outstanding bonds   1,124,520    1,124,520 
Total long-term liabilities   2,873,821    2,918,609 
Total liabilities  Ps.4,050,895   Ps.3,074,678 
           
Shareholders' equity          
Subscribed and paid capital  Ps.23,743   Ps.23,743 
Additional paid-in capital   9,695,243    9,695,243 
Retained earnings   7,469,581    5,939,430 
Net income   415,940    2,541,179 
Other equity accounts   (911,882)   (1,237,319)
Total shareholders' equity  Ps.16,692,625   Ps.16,962,276 
           
Total liabilities and shareholders' equity  Ps.20,743,520   Ps.20,036,954 

 

 

 

GRUPO AVAL ACCIONES Y VALORES S.A.

Statement of income 

(Stated in millions of Colombian pesos, except earnings per share)

 

   For the accumulated period
   March 31st  March 31st
   2023  2022
       
Operating revenue      
Equity method income, net  Ps.412,496   Ps.630,683 
Other revenue from ordinary activities   116,610    72,373 
Total operating revenue  Ps.529,106   Ps.703,056 
           
Expenses, net          
Administrative expenses  Ps.18,713   Ps.32,549 
Other expenses   (99)   14 
Revenue from exchange differences   (130)   (42)
   Ps.18,484   Ps.32,521 
           
Operating income  Ps.510,622   Ps.670,535 
           
Financial expenses   81,532    34,039 
           
Earnings before taxes  Ps.429,090   Ps.636,496 
           
Income tax expense   13,150    5,718 
           
Net income from continuing operations  Ps.415,940   Ps.630,778 
           
Discontinued operations          
Equity method income from discontinued operations   0    1,100,730 
Income from discontinued operations  Ps.0   Ps.1,100,730 
           
Net income  Ps.415,940   Ps.1,731,508 
           
Net income per share from continuing operations  Ps.17.52   Ps.28.31 
Net income per share from discontinued operations  Ps.0.00   Ps.49.40 

  

 

GRUPO AVAL ACCIONES Y VALORES S.A.

Statement of Other Comprehensive Income  

(Stated in millions of Colombian pesos)

IFRS

 

   For the accumulated period
   March 31st  March 31st
   2023  2022
       
Net income  Ps.415,940   Ps.1,731,508 
           
Other comprehensive income (OCI), net of taxes          
Participation in other comprehensive income          
reported using the equity method   325,437    (1,867,591)
           
Comprehensive income, net  Ps.741,377   Ps.(136,083)

 

 

GRUPO AVAL ACCIONES Y VALORES S.A.

Individual statement of cash flow 

For the period ended as of march 31st 2023 and 2022

(Stated in millions of Colombian pesos)

 

   March 31st  March 31st
   2023  2022
Cash flow from operating activity:      
Net Income  Ps.415,940   Ps.1,731,508 
           
Adjustments to reconcile net profit with net cash
used in operating activities		          
Income tax expense  Ps.13,150   Ps.5,718 
Property and equipment depreciation and amortization   398    426 
Impairment of receivables   (121)   - 
Equity method income   (412,496)   (630,683)
Equity method income from discontinued operations   -    (1,100,730)
           
Changes in operating assets and liabilities:          
Decrease (Increase) in trading securities   570    (77)
Increase in interest receivables   (382)   - 
Decrease in other assets and liabilities, net: prepaid taxes, prepaid expenses; taxes, accounts payable,
employee liabilities, estimated liabilities and provisions.		   (16,530)   (12,357)
Increase in interests payable   1,319    2,887 
Interest payment on lease agreements (IFRS 16)   (132)   (63)
Dividends received by subsidiaries   98,655    283,955 
Income tax paid   -    (3,354)
           
Net cash used in operating activities  Ps.100,371   Ps.277,230 
           
Cash flow from investing activities:          
Acquisition of property and equipment   -    (22)
           
Net cash used in investing activities  Ps.0   Ps.(22)
           
Cash flow from financing activities:          
Dividends paid   (1,475)   (299,942)
Payment of liabilities arising from lease agreements   (269)   (317)
Net cash from financing activities  Ps.(1,744)  Ps.(300,259)
           
Change in cash and cash equivalents   98,627    (23,051)
Cash and cash equivalents as of the beginning of the period   67,439    174,784 
Cash and cash equivalents as of the end of the period  Ps.166,066   Ps.151,733 
Additional information:          
Payment of Interest  Ps.80,343   Ps.31,173 

 

 

GRUPO AVAL ACCIONES Y VALORES S.A.

Statement of shareholders' equity 

For the period ended as of March 31st 2023

(Stated in million of Colombian pesos)

 

         Retained earnings (losses)            
   Subscribed and paid capital  Paid-in Capital  Legal reserve  Occasional reserve  Retained earnings
(losses)		  Operations with shareholders  Net Income  Other equity accounts  Shareholders' equity
                            
Balance as of December 31st. 2021  Ps.22,281   Ps.8,612,936   Ps.11,140   Ps.10,706,543   Ps.(393,822)   -   Ps.3,502,758   Ps.1,013,600   Ps.23,475,436 
                                              
Constitution of reserves for future distributions net income 2021                  3,502,758              (3,502,758)        - 
Reserve appropriation                  (188,208)   188,208                   - 
To distribute a stock dividend of $ 54 per share, over 22,281,017,159 shares outstanding as of december 31st 2021. These dividends will be paid at the rate of 1 share for each 13.74233 common or preferential shares as of december 31st, 2021.                  (1,203,175)                       (1,203,175)
Issuance of shares                  1,203,175                        1,203,175 
Application of the equity method                                      (1,149,373)   (1,149,373)
Application of the equity method (Spin-off)                            (6,644,277)        (718,218)   (7,362,495)
Witholding tax on dividends                       258                   258 
Net Income                                 1,731,508         1,731,508 
                                              
Balance as of March 31st 2022  Ps.22,281   Ps.8,612,936   Ps.11,140   Ps.14,021,093   Ps.(205,356)   (6,644,277)  Ps.1,731,508   Ps.(853,991)  Ps.16,695,334 
                                              
Balance as of December 31st 2022  Ps.23,743   Ps.9,695,243   Ps.11,872   Ps.12,817,186   Ps.(245,351)   (6,644,277)  Ps.2,541,179   Ps.(1,237,319)  Ps.16,962,276 
                                              
Constitution of reserves for future distributions net income 2022                  2,541,179              (2,541,179)        - 
Reserve appropriation                  (7,111,764)   467,487    6,644,277              - 
To distribute a cash dividend of $ 3.60 per share per month from April 2023 to March 2024 including those two months, over 23.743.475.754 outstanding shares as of the date of this meeting.                  (1,025,718)                       (1,025,718)
Application of the equity method                                      325,437    325,437 
Witholding tax on dividends                       14,690                   14,690 
Net Income                                 415,940         415,940 
                                              
Balance as of March 31st 2023  Ps.23,743   Ps.9,695,243   Ps.11,872   Ps.7,220,883   Ps.236,826    0   Ps.415,940   Ps.(911,882)  Ps.16,692,625 

 

 

 

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 16, 2023

 

    GRUPO AVAL ACCIONES Y VALORES S.A.
     
     
      By: /s/ Jorge Adrián Rincón Plata
        Name: Jorge Adrián Rincón Plata
        Title: Chief Legal Counsel