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 June 2017
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:
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):
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):
GRUPO
AVAL ACCIONES Y VALORES S.A.
TABLE
OF CONTENTS
ITEM
|
|
1.
|
Report of First Quarter 2017 Consolidated Results
|
2.
|
First Quarter 2017 Consolidated Earnings Results Presentation
|
Item 1
0 Report of 1Q2017 consolidated results Information reported in Ps billions (1) and under IFRS (1) We refer to billions as thousands of millions.
Grupo Aval
Acciones y Valores S.A. (“Grupo Aval”) is an issuer of securities in Colombia and in the United States, registered
with Colombia’s National Registry of Shares and Issuers (Registro Nacional de Valores y Emisores) and the United States
Securities and Exchange Commission (“SEC”). As such, it is subject to the control of the Superintendency of Finance
and compliance with applicable U.S. securities regulation as a “foreign private issuer” under Rule 405 of the U.S.
Securities Act of 1933. Grupo Aval is a not a financial institution and is not supervised or regulated as a financial institution
in Colombia.
As an issuer
of securities in Colombia, Grupo Aval is required to comply with periodic reporting requirements and corporate governance, however,
it is not regulated as a financial institution or as a holding company of banking subsidiaries and, thus, is not required to comply
with capital adequacy regulations applicable to banks and other financial institutions. All of our banking subsidiaries (Banco
de Bogotá, Banco de Occidente, Banco Popular and Banco AV Villas), Porvenir and Corficolombiana, are subject to inspection
and surveillance as financial institutions by the Superintendency of Finance.
Although
we are not a financial institution, until December 31, 2014 we prepared the unaudited consolidated financial information included
in these quarterly reports in accordance with the regulations of the Superintendency of Finance for financial institutions and
generally accepted accounting principles for banks to operate in Colombia, also known as Colombian Banking GAAP because we believe
that presentation on that basis most appropriately reflected our activities as a holding company of a group of banks and other
financial institutions.
However,
in 2009 the Colombian Congress enacted Law 1314 establishing the implementation of IFRS in Colombia. As a result, since January
1, 2015 financial entities and Colombian issuers of publicly traded securities such as Grupo Aval must prepare financial statements
in accordance with IFRS. IFRS as applicable under Colombian regulations differs in certain aspects from IFRS as currently issued
by the IASB.
The unaudited
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-GAAP measures such as ROAA and ROAE, among others, are explained when required in this report.
Because of our recent
migration to IFRS and recent implementation of IFRS accounting principles, the unaudited consolidated financial information for
the first quarter of 2017, and the first and fourth quarter of 2016, may be subject to further amendments.
This report
may include forward-looking statements, which actual results may vary from those stated herein as a consequence of changes in
general, economic and business conditions, changes in interest and currency rates and other risks factors as evidenced in our
Form 20-F available at the SEC webpage. Recipients of this document are responsible for the assessment and use of the information
provided herein. Grupo Aval will not have any obligation to update the information herein and shall not be responsible for any
decision taken by investors in connection with this document. The content of this document and the unaudited figures included
herein are not intended to provide full disclosure on Grupo Aval or its affiliates.
When applicable, in this document we refer to billions as thousands of
millions.
1
|
|
Bogotá,
May 30
th
, 2017. GRUPO AVAL ACCIONES Y VALORES S.A. (“Grupo Aval”) reports a consolidated attributable net
income result of Ps 587.0 billion for 1Q17 versus a Ps 458.4 billion figure reported for 4Q16. ROAE for the quarter was 15.4%
and ROAA for the quarter was 1.6%.
The following
are the main highlights of our 1Q17 results under IFRS (1/2):
|
•
|
Attributable
net income for the quarter was Ps 587.0 billion or 26 pesos per share, 25.8% higher than
the 1Q2016 result. On a consolidated basis we paid Ps 109.3 billion in equity tax (Ps
73.7 billion on an attributable net income basis or 3.3 pesos per share). As a result
of the Tax Reform of 2016, this is the last quarter that corporations, including banks,
pay equity tax.
|
|
•
|
Gross
loans, excluding interbank and overnight funds, grew by 6.8% as of March 31, 2017 when
compared to March 31, 2016. Excluding the impact of the FX movement in our Central American
operation, loans grew by 8% in the last year. However, the Country’s GNP slow growth
took a toll in our loans’ growth during the first quarter of this year; when absent
the impact of the appreciation of the Colombian Peso against the USD our loan book grew
0.4%. Including FX movements total loans declined by 0.7% in the first quarter.
|
|
•
|
Deposit
growth outpaced the growth of our loans during the last twelve months and during the
quarter. Total deposits grew by 7.2% with respect to March 31, 2016; excluding FX movements
affecting our Central American operation, deposits grew by 8.3% during the last twelve
months. When compared to December 31, 2016, deposits grew by 2%; excluding FX movements
growth in deposits amounted to 3.1%. Consequently, our deposit to loan ratio improved
to 0.97x as of March 31, 2017 from 0.95x as of December 31, 2016.
|
|
•
|
We
continue to emphasize a strong liquidity position, particularly in Central America, and
as a result our consolidated ratio of cash and cash equivalents to deposits improved
from 15.4% as of December 31, 2016 to 16.7% as of March 31, 2017.
|
|
•
|
The
NIM of our consolidated operation improved by 40 bps in 1Q2017 versus 4Q2016, reaching
5.9%. Movements in our total consolidated NIM were influenced by:
|
|
•
|
5%
of our total funding is more expensive funding obtained by the non-financial sector affiliates
of Corficolombiana,
|
|
•
|
Our
non-financial sector earning assets tripled since 1Q2016 (as a percentage of total interest
earning assets) mostly as a result of the entry into service during December, 2016 of
Promigas’ Natural gas liquefaction facility whose associated concession contract
is accounted for as a financial lease;
|
|
•
|
Average
yield on total loans (non-financial and financial sectors) remained flat at 11.7%,
|
|
•
|
Average
cost of total funds decreased by 40 bps in line with recent contractions in the Central
Bank Rate,
|
|
•
|
NIM
on loans expanded by 40 bps, driven by lower cost of funds and a sharp increase in our
non-financial sector NIM on loans,
|
|
•
|
NIM
on total investments expanded by 30 bps driven by the decrease in cost of funds,
|
2
|
|
The following
are the main highlights of our 1Q17 results under IFRS (2/2):
|
•
|
Our
30 day PDLs and NPLs deteriorated by 60 bps and 20bps respectively during the quarter,
primarily driven by our exposure to Electricaribe (approx. USD 185 million); Electricaribe
accounted for 56 pbs of deterioration in the Commercial Loan PDL ratio and 44 bps in
the Commercial Loan NPL ratio. Electricaribe also accounted for 33 bps of deterioration
in the Total PDL ratio and 26 bps in the Total NPL ratio. We also saw 40 bps deterioration
in Consumer Loan PDLs (SME’s, credit cards and other personal loans); however,
in nominal values this deterioration amounted to approximately USD 55 million, a much
smaller number when compared to Electricaribe’s. Deterioration in general has been
driven by the current low economic cycle and the still high (yet decreasing) interest
rate scenario.
|
|
•
|
Our
Cost of Risk was 2.1% before recoveries and 1.9% after provisions, an improvement versus
the last quarter of 2016 of 20 bps and 10 bps respectively. Although these numbers reflect
necessary provisions for the deterioration in Consumer Loan asset quality, they do not
take into account additional provisions for the Electricaribe loans, which should occur
between May and December 2017, bringing total provisions to 80% of this exposure (from
an existing 13%). Lesser provisions may be required if an agreement is reached between
the Colombian Government and Gas Natural of Spain or if the Government implements other
plans for the company such as those recently reported in different news media.
|
|
•
|
Gross
fee Income grew by 7% with respect to the first quarter of 2016 and remained stable when
compared to the last quarter of 2016. In absence of FX movements fee income grew by almost
12% in the last twelve months.
|
|
•
|
Our
consolidated efficiency ratio, measured as cost to income, was 45.9% in 1Q2017, versus
52.2% during 4Q2016. This improvement is partially explained by traditionally lower first
quarter expenses but also reflects our efforts to control expenses.
|
|
•
|
As
of March 31, 2017, all our banks continued to show strong Tier 1 and full solvency levels,
between 9.2% and 11.3% and between 11.3% and 13.9%, respectively.
|
|
•
|
As
of this year we have switched from two shareholder meetings per year to only one, in
line with industry practices. Consequently, on the March, 2017 shareholders’ meetings
we declared dividends for a 12 month period rather than a 6 month period. Therefore,
our consolidated attributable equity decreased during the quarter.
|
|
•
|
Our
ROAE and ROAA for the quarter were 15.4% and 1.6% respectively.
|
3
|
|
Grupo
Aval Acciones y Valores S.A.
|
|
|
Consolidated
Financial Statements Under Full IFRS
|
|
Information
in Ps. Billions
|
|
|
Consolidated
Statement of Financial Position
|
|
1Q16
|
|
4Q16
|
|
1Q17
|
|
Δ
|
|
|
|
|
1Q17
vs. 4Q16
|
1Q17
vs. 1Q16
|
Cash and cash
equivalents
|
|
21,366.3
|
|
22,193.0
|
|
24,542.3
|
|
10.6%
|
14.9%
|
Total financial assets
held for trading through profit or losses
|
|
5,927.9
|
|
4,593.7
|
|
5,063.0
|
|
10.2%
|
-14.6%
|
Total available for sale
financial assets
|
|
20,368.4
|
|
18,392.5
|
|
18,063.6
|
|
-1.8%
|
-11.3%
|
Investments held to maturity
|
|
2,288.4
|
|
2,570.5
|
|
2,636.8
|
|
2.6%
|
15.2%
|
Other financial assets
at fair value through profit or losses
|
|
1,933.3
|
|
2,072.7
|
|
2,117.7
|
|
2.2%
|
9.5%
|
Total loans and receivables,
net
|
|
140,064.6
|
|
150,898.7
|
|
151,304.0
|
|
0.3%
|
8.0%
|
Tangible assets
|
|
6,572.0
|
|
6,559.5
|
|
6,430.9
|
|
-2.0%
|
-2.1%
|
Goodwill
|
|
6,825.9
|
|
6,824.9
|
|
6,644.0
|
|
-2.7%
|
-2.7%
|
Concession arrangements
rights
|
|
2,453.3
|
|
2,805.3
|
|
2,816.2
|
|
0.4%
|
14.8%
|
Other assets
|
|
7,072.3
|
|
7,162.8
|
|
7,493.9
|
|
4.6%
|
6.0%
|
Total
assets
|
|
214,872.2
|
|
224,073.7
|
|
227,112.6
|
|
1.4%
|
5.7%
|
Derivative instruments
held for trading
|
|
1,164.0
|
|
640.7
|
|
581.6
|
|
-9.2%
|
-50.0%
|
Deposits from clients at
amortized cost
|
|
136,882.7
|
|
143,887.1
|
|
146,736.3
|
|
2.0%
|
7.2%
|
Interbank borrowings and
overnight funds
|
|
9,268.8
|
|
6,315.7
|
|
7,984.8
|
|
26.4%
|
-13.9%
|
Borrowings from banks and
others
|
|
16,561.9
|
|
17,906.6
|
|
18,368.5
|
|
2.6%
|
10.9%
|
Bonds
|
|
15,836.9
|
|
18,568.2
|
|
16,275.4
|
|
-12.3%
|
2.8%
|
Borrowings from development
entities
|
|
2,623.4
|
|
2,725.7
|
|
2,790.1
|
|
2.4%
|
6.4%
|
Other liabilities
|
|
9,649.4
|
|
9,370.5
|
|
10,670.4
|
|
13.9%
|
10.6%
|
Total
liabilities
|
|
191,987.1
|
|
199,414.5
|
|
203,407.2
|
|
2.0%
|
5.9%
|
Equity
attributable to owners of the parent company
|
|
14,380.1
|
|
15,601.6
|
|
14,881.8
|
|
-4.6%
|
3.5%
|
Non-controlling
interests
|
|
8,505.0
|
|
9,057.7
|
|
8,823.6
|
|
-2.6%
|
3.7%
|
Total
equity
|
|
22,885.1
|
|
24,659.2
|
|
23,705.4
|
|
-3.9%
|
3.6%
|
Total
liabilities and equity
|
|
214,872.2
|
|
224,073.7
|
|
227,112.6
|
|
1.4%
|
5.7%
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statement of Income
|
|
1Q16
|
|
4Q16
|
|
1Q17
|
|
Δ
|
Interest income
|
|
4,165.3
|
|
4,620.1
|
|
4,728.9
|
|
2.4%
|
13.5%
|
Interest expense
|
|
1,848.1
|
|
2,305.5
|
|
2,189.1
|
|
-5.0%
|
18.5%
|
Net
interest income
|
|
2,317.2
|
|
2,314.6
|
|
2,539.8
|
|
9.7%
|
9.6%
|
Impairment loss on loans
and accounts receivable
|
|
718.5
|
|
861.9
|
|
791.3
|
|
-8.2%
|
10.1%
|
Impairment loss on other
financial assets
|
|
1.2
|
|
32.4
|
|
5.6
|
|
-82.8%
|
N.A.
|
Recovery of charged-off
assets
|
|
(49.7)
|
|
(108.8)
|
|
(54.9)
|
|
-49.5%
|
10.7%
|
Impairment
loss on financial assets, net
|
|
670.1
|
|
785.5
|
|
741.9
|
|
-5.5%
|
10.7%
|
Net income from commissions
and fees
|
|
1,050.3
|
|
1,110.8
|
|
1,130.2
|
|
1.7%
|
7.6%
|
Net trading income
|
|
132.8
|
|
237.7
|
|
32.2
|
|
-86.4%
|
-75.7%
|
Net income from financial
instruments designated at fair value
|
|
41.7
|
|
50.5
|
|
44.2
|
|
-12.6%
|
5.9%
|
Total other income (expense)
|
|
752.7
|
|
580.6
|
|
546.8
|
|
-5.8%
|
-27.4%
|
Total other expenses
|
|
2,255.1
|
|
2,189.6
|
|
2,192.3
|
|
0.1%
|
-2.8%
|
Income
before income tax expense
|
|
1,369.5
|
|
1,319.1
|
|
1,358.9
|
|
3.0%
|
-0.8%
|
Income
tax expense
|
|
573.9
|
|
476.6
|
|
445.2
|
|
-6.6%
|
-22.4%
|
Income
from continued operations
|
|
795.6
|
|
842.4
|
|
913.7
|
|
8.5%
|
14.8%
|
Income from discontinued operations
|
|
-
|
|
(0.1)
|
|
-
|
|
-100.0%
|
N.A
|
Net
income before non-controlling interest
|
|
795.6
|
|
842.5
|
|
913.7
|
|
8.4%
|
14.8%
|
Non-controlling interest
|
|
329.2
|
|
384.1
|
|
326.7
|
|
-14.9%
|
-0.7%
|
Net
income attributable to the owners of the parent company
|
|
466.4
|
|
458.4
|
|
587.0
|
|
28.0%
|
25.8%
|
|
|
|
|
|
|
|
|
|
|
Key
ratios
|
|
1Q16
|
|
4Q16
|
|
1Q17
|
|
|
|
Net Interest Margin(1)
|
|
5.6%
|
|
5.4%
|
|
5.8%
|
|
|
|
Net Interest Margin (including net trading
income)(1)
|
|
5.6%
|
|
5.5%
|
|
5.9%
|
|
|
|
Efficiency ratio(2)
|
|
44.1%
|
|
52.2%
|
|
45.9%
|
|
|
|
ROAA(3)
|
|
1.5%
|
|
1.5%
|
|
1.6%
|
|
|
|
ROAE(4)
|
|
12.9%
|
|
11.9%
|
|
15.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 days PDL / Total loans and leases (5)
|
|
3.0%
|
|
3.0%
|
|
3.6%
|
|
|
|
Provision expense / Average loans and leases
(6)
|
|
2.0%
|
|
2.3%
|
|
2.1%
|
|
|
|
Allowance / 30 days PDL (5)
|
|
0.90
|
|
0.95
|
|
0.81
|
|
|
|
Allowance / Total loans and leases
|
|
2.7%
|
|
2.8%
|
|
2.9%
|
|
|
|
Charge-offs / Average loans and leases (6)
|
|
1.6%
|
|
1.7%
|
|
1.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases, net / Total assets
|
|
65.2%
|
|
67.3%
|
|
66.6%
|
|
|
|
Deposits / Total loans and leases, net
|
|
97.7%
|
|
95.4%
|
|
97.0%
|
|
|
|
Equity / Assets
|
|
10.7%
|
|
11.0%
|
|
10.4%
|
|
|
|
Tangible equity ratio (7)
|
|
7.4%
|
|
7.9%
|
|
7.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding (EoP)
|
|
22,281,017,159
|
|
22,281,017,159
|
|
22,281,017,159
|
|
|
|
Shares outstanding (Average)
|
|
22,281,017,159
|
|
22,281,017,159
|
|
22,281,017,159
|
|
|
|
Common share price (EoP)
|
|
1,150.0
|
|
1,180.0
|
|
1,165.0
|
|
|
|
Preferred share price (EoP)
|
|
1,170.0
|
|
1,215.0
|
|
1,170.0
|
|
|
|
BV/ EoP shares in Ps.
|
|
645.4
|
|
700.2
|
|
667.9
|
|
|
|
EPS
|
|
20.9
|
|
20.6
|
|
26.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
P/E (8)
|
|
14.0
|
|
14.8
|
|
11.1
|
|
|
|
P/BV (8)
|
|
1.8
|
|
1.7
|
|
1.8
|
|
|
|
(1) NIM is calculated as Net Interest
Income divided by the average of Interest Earning Assets; (2) Efficiency Ratio is calculated as personnel plus administrative
and other expenses divided by net interest income plus net trading income, other income and fees and other services income,
net (excluding others); (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) Total loans excluding interbank and overnight funds and 30 days
past due include interest accounts receivables; (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.
4
|
|
Statement of Financial Position
Analysis
1. Assets
Total
assets as of March 31
st
, 2017 totaled Ps 227,112.6 billion showing an increase of 5.7% versus March 31
st
,
2016, and of 1.4% versus December 31
st
, 2016. Growth in assets was mainly driven by a 8.0% year over year growth in
total loans and receivables, net to Ps 151,304.0 billion. When excluding FX movement in our Central American operation (“excluding
FX”), asset growth would have been 6.9% versus March 31
st
, 2016 and 2.5% versus December 31
st
, 2016
and for the total loans and receivables, net growth would have been 9.2% and 1.4%, respectively.
1.1 Loans and receivables
Total
gross loans and leases operations and receivables portfolio increased by 8.2% between March 31
st
, 2016 and March 31
st
,
2017 to Ps 155,693.7 billion (9.4% excluding FX) mainly driven by (i) a 11.0% increase in Consumer loans and leases to Ps 46,854.2
billion (12.5% excluding FX), (ii) a 9.6% increase in Mortgage and housing leases to Ps 14,613.9 billion (12.3% excluding FX),
(iii) a 4.3% increase in Commercial loans and leases to Ps 88,730.3 billion (5.1% excluding FX), and (iv) a 75.9% increase in
Interbank & overnight funds (79.1% excluding FX).
Allowance
for impairment of loans and receivables was Ps 4,389.7 billion as of March 31
st
, 2017 taking net loans and receivables
to Ps 151,304.0 billion, 8.0% higher than in March 31
st
, 2016.
Total
loans and receivables, net
|
|
1Q16
|
|
4Q16
|
|
1Q17
|
|
Δ
|
|
|
|
|
1Q17
vs. 4Q16
|
1Q17
vs. 1Q16
|
Loans
and receivables
|
|
|
|
|
|
|
|
|
|
Commercial loans and leases
|
|
85,032.0
|
|
89,579.6
|
|
88,730.3
|
|
-0.9%
|
4.3%
|
Consumer loans and leases
|
|
42,214.7
|
|
46,928.0
|
|
46,854.2
|
|
-0.2%
|
11.0%
|
Mortgages and housing leases
|
|
13,338.5
|
|
14,683.5
|
|
14,613.9
|
|
-0.5%
|
9.6%
|
Microcredit loans and leases
|
|
394.5
|
|
399.4
|
|
396.1
|
|
-0.8%
|
0.4%
|
Loans
and receivables
|
|
140,979.7
|
|
151,590.6
|
|
150,594.5
|
|
-0.7%
|
6.8%
|
Interbank & overnight funds
|
|
2,899.6
|
|
3,569.6
|
|
5,099.3
|
|
42.9%
|
75.9%
|
Total
loans and leases operations and receivables portfolio
|
|
143,879.2
|
|
155,160.2
|
|
155,693.7
|
|
0.3%
|
8.2%
|
Allowance
for impairment of loans and receivables
|
|
(3,814.7)
|
|
(4,261.4)
|
|
(4,389.7)
|
|
3.0%
|
15.1%
|
Allowance for impairment
of commercial loans
|
|
(1,877.5)
|
|
(2,028.4)
|
|
(2,072.7)
|
|
2.2%
|
10.4%
|
Allowance for impairment
of consumer loans
|
|
(1,763.4)
|
|
(2,026.3)
|
|
(2,119.7)
|
|
4.6%
|
20.2%
|
Allowance for impairment
of mortgages
|
|
(120.7)
|
|
(143.6)
|
|
(131.9)
|
|
-8.1%
|
9.3%
|
Allowance for impairment
of microcredit loans
|
|
(53.0)
|
|
(63.1)
|
|
(65.4)
|
|
3.5%
|
23.2%
|
Total
loans and receivables, net
|
|
140,064.6
|
|
150,898.7
|
|
151,304.0
|
|
0.3%
|
8.0%
|
5
|
|
The following table shows the gross loan composition per entity. During the last twelve months, Banco
AV Villas showed the highest growth rate within our banking operation in Colombia.
Gross
loans / Bank ($)
|
|
1Q16
|
|
4Q16
|
|
1Q17
|
|
Δ
|
|
|
|
|
1Q17
vs. 4Q16
|
1Q17
vs. 1Q16
|
Banco de Bogotá
|
|
92,633.5
|
|
99,541.3
|
|
99,672.5
|
|
0.1%
|
7.6%
|
Domestic
|
|
51,919.5
|
|
54,676.1
|
|
55,697.6
|
|
1.9%
|
7.3%
|
Central America
|
|
40,714.0
|
|
44,865.2
|
|
43,974.9
|
|
-2.0%
|
8.0%
|
Banco de Occidente
|
|
26,395.5
|
|
27,446.1
|
|
27,853.7
|
|
1.5%
|
5.5%
|
Banco Popular
|
|
15,087.7
|
|
16,540.6
|
|
16,457.9
|
|
-0.5%
|
9.1%
|
Banco AV Villas
|
|
8,880.0
|
|
9,409.7
|
|
9,865.9
|
|
4.8%
|
11.1%
|
Corficolombiana
|
|
1,751.1
|
|
3,207.5
|
|
2,871.0
|
|
-10.5%
|
64.0%
|
Eliminations
|
|
(868.5)
|
|
(985.1)
|
|
(1,027.3)
|
|
4.3%
|
18.3%
|
Total
Grupo Aval
|
|
143,879.2
|
|
155,160.2
|
|
155,693.7
|
|
0.3%
|
8.2%
|
|
|
|
|
|
|
|
|
|
|
Gross
loans / Bank (%)
|
|
1Q16
|
|
4Q16
|
|
1Q17
|
|
|
|
|
|
|
|
|
Banco de Bogotá
|
|
64.4%
|
|
64.2%
|
|
64.0%
|
|
|
|
Domestic
|
|
36.1%
|
|
35.2%
|
|
35.8%
|
|
|
|
Central America
|
|
28.3%
|
|
28.9%
|
|
28.2%
|
|
|
|
Banco de Occidente
|
|
18.3%
|
|
17.7%
|
|
17.9%
|
|
|
|
Banco Popular
|
|
10.5%
|
|
10.7%
|
|
10.6%
|
|
|
|
Banco AV Villas
|
|
6.2%
|
|
6.1%
|
|
6.3%
|
|
|
|
Corficolombiana
|
|
1.2%
|
|
2.1%
|
|
1.8%
|
|
|
|
Eliminations
|
|
-0.6%
|
|
-0.6%
|
|
-0.7%
|
|
|
|
Total
Grupo Aval
|
|
100%
|
|
100%
|
|
100%
|
|
|
|
As detailed below, of the total
gross loans of Grupo Aval, 71.8% are domestic and 28.2% are foreign (reflecting the Central American operations). Total foreign
gross loans grew 8.0% during the past 12 months and decreased by 2.0% in the quarter. Excluding FX, yearly and quarterly growth
for our Central American operations would have been 12.3% and 1.9%, respectively.
Gross
loans
|
|
1Q16
|
|
4Q16
|
|
1Q17
|
|
Δ
|
|
|
|
|
1Q17
vs. 4Q16
|
1Q17
vs. 1Q16
|
Domestic
|
|
|
|
|
|
|
|
|
|
Commercial loans and leases
|
|
68,607.5
|
|
71,708.8
|
|
71,465.6
|
|
-0.3%
|
4.2%
|
Consumer loans and leases
|
|
27,626.1
|
|
30,564.5
|
|
31,067.2
|
|
1.6%
|
12.5%
|
Mortgages and housing leases
|
|
4,996.3
|
|
5,725.9
|
|
5,889.6
|
|
2.9%
|
17.9%
|
Microcredit loans and leases
|
|
394.5
|
|
399.4
|
|
396.1
|
|
-0.8%
|
0.4%
|
Interbank & overnight funds
|
|
1,540.8
|
|
1,896.3
|
|
2,900.4
|
|
53.0%
|
88.2%
|
Total
domestic loans
|
|
103,165.2
|
|
110,295.0
|
|
111,718.8
|
|
1.3%
|
8.3%
|
Foreign
|
|
|
|
|
|
|
|
|
|
Commercial loans and leases
|
|
16,424.5
|
|
17,870.8
|
|
17,264.7
|
|
-3.4%
|
5.1%
|
Consumer loans and leases
|
|
14,588.6
|
|
16,363.5
|
|
15,787.0
|
|
-3.5%
|
8.2%
|
Mortgages and housing leases
|
|
8,342.1
|
|
8,957.6
|
|
8,724.3
|
|
-2.6%
|
4.6%
|
Microcredit loans and leases
|
|
-
|
|
-
|
|
-
|
|
-
|
-
|
Interbank & overnight funds
|
|
1,358.8
|
|
1,673.3
|
|
2,198.9
|
|
31.4%
|
61.8%
|
Total
foreign loans
|
|
40,714.0
|
|
44,865.2
|
|
43,974.9
|
|
-2.0%
|
8.0%
|
Total
loans and leases operations and receivables portfolio
|
|
143,879.2
|
|
155,160.2
|
|
155,693.7
|
|
0.3%
|
8.2%
|
(1)
Pro-forma
figures for 1Q16 for comparability to reflect the deconsolidation of Corficolombiana at Banco de Bogotá. During 4Q16 Corficolombiana
figures reflect the start of operations in Promigas (consolidated) of two projects that are accounted as financial leases, the
LNG regasification plant at Sociedad Portuaria del Cayao (SPEC) and the BOMT gas treatment plant project signed with Canacol Energy
Ltd. During the first quarter of 2017, Promigas (consolidated) recorded the start of operation of a BOMT project signed with Hocol,
also accounted as a financial lease.
6
|
|
The ratio
of 30 days PDL to total loans closed 1Q17 in 3.6% compared to the 3.0% in 1Q16 and 4Q16. The ratio of 90 days PDL to total loans
was 2.2% for 1Q17 compared to 1.8% in 1Q16 and 2.0% in 4Q16. Finally, the ratio of CDE Loans to total loans was 4.7% in 1Q17 and
4.5% in 4Q16.
Grupo Aval’s
coverage of its 90 days PDL was 1.3x for 1Q17, slightly down from 1.4x in 4Q16. Allowance to CDE Loans was 0.6x for 1Q17 and 4Q16,
and allowance to 30 days PDL was 0.8x for 1Q17 and 1.0x for 4Q16. The decline in coverage is expected to be temporary as provisions
for Electricaribe will be gradually constituted over the year. Impairment loss, net of recoveries of charged off assets to average
total loans was 1.9% in 1Q17 versus 2.0% in 4Q16. Charge-offs to average total loans was 1.7% in 1Q17, 1.7% in 4Q16 and 1.6% in
1Q16.
Total
loans and leases operations and receivables portfolio
|
|
1Q16
|
|
4Q16
|
|
1Q17
|
|
Δ
|
|
|
|
|
1Q17
vs. 4Q16
|
1Q17
vs. 1Q16
|
''A'' normal risk
|
|
131,714.8
|
|
140,895.0
|
|
138,137.6
|
|
-2.0%
|
4.9%
|
''B'' acceptable risk
|
|
3,571.8
|
|
3,939.0
|
|
5,343.5
|
|
35.7%
|
49.6%
|
''C'' appreciable risk
|
|
2,827.8
|
|
3,438.6
|
|
3,745.5
|
|
8.9%
|
32.5%
|
''D'' significant risk
|
|
1,844.6
|
|
2,177.0
|
|
2,137.1
|
|
-1.8%
|
15.9%
|
''E'' unrecoverable
|
|
1,020.6
|
|
1,141.0
|
|
1,230.8
|
|
7.9%
|
20.6%
|
Loans
and receivables
|
|
140,979.7
|
|
151,590.6
|
|
150,594.5
|
|
-0.7%
|
6.8%
|
Interbank and overnight funds
|
|
2,899.6
|
|
3,569.6
|
|
5,099.3
|
|
42.9%
|
75.9%
|
Total
loans and leases operations and receivables portfolio
|
|
143,879.2
|
|
155,160.2
|
|
155,693.7
|
|
0.3%
|
8.2%
|
|
|
|
|
|
|
|
|
|
|
CDE Loans
|
|
5,693.1
|
|
6,756.6
|
|
7,113.4
|
|
|
|
30 Days Past Due Loans
|
|
4,251.6
|
|
4,483.7
|
|
5,392.5
|
|
|
|
90 Days Past Due Loans
|
|
2,601.3
|
|
2,962.0
|
|
3,350.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CDE
loans / Total loans (*)
|
|
4.0%
|
|
4.5%
|
|
4.7%
|
|
|
|
30 Days PDL / Total
loans (*)
|
|
3.0%
|
|
3.0%
|
|
3.6%
|
|
|
|
90
Days PDL / Total loans (*)
|
|
1.8%
|
|
2.0%
|
|
2.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for impairment / CDE loans
|
|
0.7
|
|
0.6
|
|
0.6
|
|
|
|
Allowance for impairment
/ 30 Days PDL
|
|
0.9
|
|
1.0
|
|
0.8
|
|
|
|
Allowance for impairment
/ 90 Days PDL
|
|
1.5
|
|
1.4
|
|
1.3
|
|
|
|
Allowance
for impairment / Total loans (*)
|
|
2.7%
|
|
2.8%
|
|
2.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment
loss / CDE loans
|
|
0.5
|
|
0.5
|
|
0.4
|
|
|
|
Impairment loss
/ 30 Days PDL
|
|
0.7
|
|
0.8
|
|
0.6
|
|
|
|
Impairment loss
/ 90 Days PDL
|
|
1.1
|
|
1.2
|
|
0.9
|
|
|
|
Impairment loss
/ Average total loans (*)
|
|
2.0%
|
|
2.3%
|
|
2.1%
|
|
|
|
Impairment
loss, net of recoveries of charged-off assets / Average total loans (*)
|
|
1.9%
|
|
2.0%
|
|
1.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs
/ Average total loans (*)
|
|
1.6%
|
|
1.7%
|
|
1.7%
|
|
|
|
(*) Total loans excluding interbank and overnight
funds. 30 days past due and 90 days past due are calculated on a capital plus interest accounts receivable basis.
7
|
|
1.2 Financial assets held
for investment
Total financial
assets held for investment decreased 8.6% to Ps 27,881.2 billion between March 31
st
, 2016 and March 31
st
,
2017, and increased by 0.9% versus December 31
st
, 2016. Ps 22,601.4 billion of our total gross portfolio is invested
in debt securities, which decreased by 8.6% between March 31
st
, 2016 and March 31
st
, 2017 and increased
by 0.1% since December 31
st
, 2016. Ps 2,546.3 billion of our total gross investment securities is invested in equity
securities, which remained basically unchanged between March 31
st
, 2016 and March 31
st
, 2017 and increased
by 2.8% versus December 31
st
, 2016.
The average
yield on our debt and equity investment securities (held for trading through profit or losses, available for sale, held to maturity
and Interbank & Overnight funds) was 5.5.% for 1Q17 compared to 5.6% for 4Q16 and 5.3% in 1Q16.
Financial
assets held for investment
|
|
1Q16
|
|
4Q16
|
|
1Q17
|
|
Δ
|
|
|
|
|
1Q17
vs. 4Q16
|
1Q17
vs. 1Q16
|
Debt securities
|
|
3,016.5
|
|
2,343.9
|
|
2,651.1
|
|
13.1%
|
-12.1%
|
Equity securities
|
|
1,613.7
|
|
1,747.6
|
|
1,796.2
|
|
2.8%
|
11.3%
|
Derivative instruments
|
|
1,297.7
|
|
502.2
|
|
615.7
|
|
22.6%
|
-52.6%
|
Total
financial assets held for trading through profit or losses
|
|
5,927.9
|
|
4,593.7
|
|
5,063.0
|
|
10.2%
|
-14.6%
|
Debt securities
|
|
19,434.4
|
|
17,662.7
|
|
17,313.5
|
|
-2.0%
|
-10.9%
|
Equity securities
|
|
934.0
|
|
729.8
|
|
750.2
|
|
2.8%
|
-19.7%
|
Total
available for sale financial assets
|
|
20,368.4
|
|
18,392.5
|
|
18,063.6
|
|
-1.8%
|
-11.3%
|
Investments held to maturity
|
|
2,288.4
|
|
2,570.5
|
|
2,636.8
|
|
2.6%
|
15.2%
|
Other financial assets at fair
value through profit or losses
|
|
1,933.3
|
|
2,072.7
|
|
2,117.7
|
|
2.2%
|
9.5%
|
Total
financial assets held for investment
|
|
30,517.9
|
|
27,629.4
|
|
27,881.2
|
|
0.9%
|
-8.6%
|
8
|
|
1.3 Cash and Cash Equivalents
As of March
31
st
, 2017 cash and cash equivalents had a balance of Ps 24,542.3 billion showing a 14.9% increase versus March 31
st
,
2016 and an increase of 10.6% versus December 31
st
, 2016 (16.6% and 12.2% increases excluding FX).
The ratio
of cash and cash equivalents to deposits improved from 15.4% in December 31
st
, 2016 to 167.% in March 31
st
,
2017.
1.4 Goodwill and Other Intangibles
Goodwill
and other intangibles as of March 31
st
, 2017 reached Ps 10,217.1 billion, increasing by 3.0% versus March 31
st
,
2016 and decreasing 1.4% versus December 31
st
, 2016.
Goodwill
as of March 31
st
, 2017 was Ps 6,644.0 billion, decreasing by 2.7% versus March 31
st
, 2016 and December 31
st
,
2016. This decreases were mainly driven by the appreciation of the Colombian peso.
Other intangibles,
defined as “concession arrangement rights”, reflect the value of road concessions and other financial assets, mainly
recorded at Corficolombiana.
2. Liabilities
As of March
31
st
, 2017 funding represented 94.5% of total liabilities and other liabilities represented 5.5%.
2.1 Funding
Total
Funding (Total Financial Liabilities at Amortized Cost) which includes (i) Deposits, (ii) Interbank borrowings and overnight
funds, (iii) Borrowings from banks and others, (iv) Bonds, and (v) Borrowing from development entities had a balance of Ps
192,155.2 billion as of March 31
st
, 2017 showing an increase of 6.1% versus March 31
st
, 2016 and an
increase of 1.5% versus December 31
st
, 2016 (7.2% increase and 2.6% increases excluding FX). Total deposits
represented 76.4% of total funding as of the end of 1Q17, 76.0% for 4Q16 and 75.6% for 1Q16.
Average
cost of funds was 4.6% in 1Q17, 5.0% in 4Q16 and 4.1% in 1Q16. The decline in average cost of funds was a consequence of a declining
interest rate scenario in Colombia.
9
|
|
2.1.1 Deposits
Deposits
from clients at amortized cost
|
|
1Q16
|
|
4Q16
|
|
1Q17
|
|
Δ
|
|
|
|
|
1Q17
vs. 4Q16
|
1Q17
vs. 1Q16
|
Checking accounts
|
|
14,472.2
|
|
13,134.6
|
|
10,995.2
|
|
-16.3%
|
-24.0%
|
Other deposits
|
|
371.8
|
|
328.8
|
|
579.0
|
|
76.1%
|
55.8%
|
Non-interest
bearing
|
|
14,844.0
|
|
13,463.4
|
|
11,574.3
|
|
-14.0%
|
-22.0%
|
Checking accounts
|
|
18,323.1
|
|
21,843.6
|
|
22,567.6
|
|
3.3%
|
23.2%
|
Time deposits
|
|
53,545.9
|
|
58,006.1
|
|
62,182.6
|
|
7.2%
|
16.1%
|
Savings deposits
|
|
50,169.7
|
|
50,573.9
|
|
50,411.8
|
|
-0.3%
|
0.5%
|
Interest
bearing
|
|
122,038.7
|
|
130,423.7
|
|
135,162.1
|
|
3.6%
|
10.8%
|
Deposits
from clients at amortized cost
|
|
136,882.7
|
|
143,887.1
|
|
146,736.3
|
|
2.0%
|
7.2%
|
Of our total deposits as of March
31
st
, 2017 checking accounts represented 22.9%, time deposits 42.4%, savings accounts 34.4%, and other deposits 0.4%.
The following table shows the deposits
composition by bank. The highest growth in deposits came from Banco Popular.
Deposits
/ Bank ($)
|
|
1Q16
|
|
4Q16
|
|
1Q17
|
|
Δ
|
|
|
|
|
1Q17
vs. 4Q16
|
1Q17
vs. 1Q16
|
Banco de Bogotá
|
|
89,132.8
|
|
93,676.7
|
|
95,809.9
|
|
2.3%
|
7.5%
|
Domestic
(1)
|
|
51,823.4
|
|
53,783.3
|
|
55,965.4
|
|
4.1%
|
8.0%
|
Central America
|
|
37,309.4
|
|
39,893.4
|
|
39,844.4
|
|
-0.1%
|
6.8%
|
Banco de Occidente
|
|
24,151.3
|
|
24,176.1
|
|
24,706.8
|
|
2.2%
|
2.3%
|
Banco Popular
|
|
12,719.8
|
|
14,733.4
|
|
15,229.7
|
|
3.4%
|
19.7%
|
Banco AV Villas
|
|
8,891.2
|
|
9,706.1
|
|
9,485.9
|
|
-2.3%
|
6.7%
|
Corficolombiana
(1)
|
|
4,307.7
|
|
3,846.8
|
|
3,971.8
|
|
3.2%
|
-7.8%
|
Eliminations
|
|
(2,320.1)
|
|
(2,251.9)
|
|
(2,467.7)
|
|
9.6%
|
6.4%
|
Total
Grupo Aval
|
|
136,882.7
|
|
143,887.1
|
|
146,736.3
|
|
2.0%
|
7.2%
|
|
|
|
|
|
|
|
|
|
|
Deposits
/ Bank (%)
|
|
1Q16
|
|
4Q16
|
|
1Q17
|
|
|
|
Banco de Bogotá
|
|
65.1%
|
|
65.1%
|
|
65.3%
|
|
|
|
Domestic
(1)
|
|
37.9%
|
|
37.4%
|
|
38.1%
|
|
|
|
Central America
|
|
27.3%
|
|
27.7%
|
|
27.2%
|
|
|
|
Banco de Occidente
|
|
17.6%
|
|
16.8%
|
|
16.8%
|
|
|
|
Banco Popular
|
|
9.3%
|
|
10.2%
|
|
10.4%
|
|
|
|
Banco AV Villas
|
|
6.5%
|
|
6.7%
|
|
6.5%
|
|
|
|
Corficolombiana
(1)
|
|
3.1%
|
|
2.7%
|
|
2.7%
|
|
|
|
Eliminations
|
|
-1.7%
|
|
-1.6%
|
|
-1.7%
|
|
|
|
Total
Grupo Aval
|
|
100.0%
|
|
100.0%
|
|
100.0%
|
|
|
|
(1)
Pro-forma figures
for 1Q16 for comparability to reflect the deconsolidation of Corficolombiana at Banco de Bogotá.
10
|
|
2.1.2 Borrowings from Banks
and Other (includes borrowings from development entities)
As of March
31
st
, 2017 borrowings from banks and other totaled Ps 21,158.6 billion, showing a 10.3% increase versus March 31
st
,
2016 and a 2.6% increase versus December 31
st
, 2016. Excluding FX, borrowings from banks and other increased 12.7%
versus 1Q16 and 4.8% versus 4Q16.
2.1.3 Bonds
Total bonds
as of March 31
st
, 2017 totaled Ps 16,275.4 billion showing an increase of 2.8% versus March 31
st
, 2016 and
a decrease of 12.3% versus December 31
st
, 2016. Excluding FX, bonds grew 3.1% versus 1Q16 and decreased 12.1% versus
4Q16. The decrease when compared to 4Q16 is mainly attributable to the maturity of Banco de Bogotá’s US$600 million
senior bonds due February, 2017.
3. Non-controlling Interest
Non-controlling
Interest in Grupo Aval reflects: (i) 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 and Corficolombiana), and (ii) the minority
stakes that third party shareholders hold in the consolidated subsidiaries at the bank level (mainly Porvenir). As of March 31
st
,
2017 non-controlling interest was Ps 8,823.6 billion which increased by 3.7% versus March 31
st
, 2016. Total non-controlling
interest remained stable during the last quarter on 37.2% of total equity. Total minority 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.
Direct
& indirect ownership of main subsidiaries
|
|
1Q16
|
|
4Q16
|
|
1Q17
|
|
Δ
|
|
|
|
|
1Q17
vs. 4Q16
|
1Q17
vs. 1Q16
|
Banco de Bogotá
|
|
68.7%
|
|
68.7%
|
|
68.7%
|
|
-
|
-
|
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%
|
|
-
|
-
|
BAC Credomatic
(1)
|
|
68.7%
|
|
68.7%
|
|
68.7%
|
|
-
|
-
|
Porvenir
(2)
|
|
75.7%
|
|
75.7%
|
|
75.7%
|
|
0
|
0
|
Corficolombiana
(3)
|
|
44.5%
|
|
44.5%
|
|
44.6%
|
|
8
|
6
|
Grupo Aval Limited
|
|
100.0%
|
|
100.0%
|
|
100.0%
|
|
-
|
-
|
Grupo Aval International Ltd.
|
|
100.0%
|
|
100.0%
|
|
100.0%
|
|
-
|
-
|
(1)
BAC Credomatic is fully owned by Banco de Bogotá; (2) Grupo Aval indirectly owns a 100% of Porvenir as follows: 20.0% in
Grupo Aval, 46.9% in Banco de Bogotá and 33.1% in Banco de Occidente. Porvenir's results consolidate into Banco de Bogotá;
(3) Grupo Aval increased its direct ownership in Corficolombiana mainly due to stock dividend distributions and acquisitions through
open market transactions.
4. Attributable Shareholders’
Equity
Attributable
shareholders’ equity as of March 31
st
, 2017 was Ps 14,881.8 billion, showing an increase of 3.5% versus March
31
st
, 2016 and a decrease of 4.6% versus December 31
st
, 2016 mainly driven by the dividends declared on
March 2017 at Grupo Avals shareholders’ meeting. Traditionally we had two shareholders’ meetings per year and beginning
on March 2017 we will only hold one per year.
11
|
|
Income Statement
Analysis
Our net income attributable to
shareholders for 1Q17 of Ps 587.0 billion shows a 25.8% increase versus 1Q16 and 28.0% versus 4Q16.
Consolidated
Statement of Income
|
|
1Q16
|
|
4Q16
|
|
1Q17
|
|
Δ
|
|
|
|
|
1Q17
vs. 4Q16
|
1Q17
vs. 1Q16
|
Interest income
|
|
4,165.3
|
|
4,620.1
|
|
4,728.9
|
|
2.4%
|
13.5%
|
Interest expense
|
|
1,848.1
|
|
2,305.5
|
|
2,189.1
|
|
-5.0%
|
18.5%
|
Net
interest income
|
|
2,317.2
|
|
2,314.6
|
|
2,539.8
|
|
9.7%
|
9.6%
|
Impairment loss on loans
and accounts receivable
|
|
718.5
|
|
861.9
|
|
791.3
|
|
-8.2%
|
10.1%
|
Impairment loss on other
financial assets
|
|
1.2
|
|
32.4
|
|
5.6
|
|
-82.8%
|
N.A.
|
Recovery of charged-off
assets
|
|
(49.7)
|
|
(108.8)
|
|
(54.9)
|
|
-49.5%
|
10.7%
|
Impairment
loss on financial assets, net
|
|
670.1
|
|
785.5
|
|
741.9
|
|
-5.5%
|
10.7%
|
Net income from commissions
and fees
|
|
1,050.3
|
|
1,110.8
|
|
1,130.2
|
|
1.7%
|
7.6%
|
Net trading income
|
|
132.8
|
|
237.7
|
|
32.2
|
|
-86.4%
|
-75.7%
|
Net income from financial
instruments designated at fair value
|
|
41.7
|
|
50.5
|
|
44.2
|
|
-12.6%
|
5.9%
|
Total other income (expense)
|
|
752.7
|
|
580.6
|
|
546.8
|
|
-5.8%
|
-27.4%
|
Total other expenses
|
|
2,255.1
|
|
2,189.6
|
|
2,192.3
|
|
0.1%
|
-2.8%
|
Income
before income tax expense
|
|
1,369.5
|
|
1,319.1
|
|
1,358.9
|
|
3.0%
|
-0.8%
|
Income
tax expense
|
|
573.9
|
|
476.6
|
|
445.2
|
|
-6.6%
|
-22.4%
|
Income
from continued operations
|
|
795.6
|
|
842.4
|
|
913.7
|
|
8.5%
|
14.8%
|
Income from discontinued operations
|
|
-
|
|
(0.1)
|
|
-
|
|
-100.0%
|
N.A
|
Net
income before non-controlling interest
|
|
795.6
|
|
842.5
|
|
913.7
|
|
8.4%
|
14.8%
|
Non-controlling interest
|
|
329.2
|
|
384.1
|
|
326.7
|
|
-14.9%
|
-0.7%
|
Net
income attributable to the owners of the parent company
|
|
466.4
|
|
458.4
|
|
587.0
|
|
28.0%
|
25.8%
|
1. Net Interest Income
Net
interest income
|
|
1Q16
|
|
4Q16
|
|
1Q17
|
|
Δ
|
|
|
|
|
1Q17
vs. 4Q16
|
1Q17
vs. 1Q16
|
Interest
income
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
1,787.9
|
|
2,034.8
|
|
2,128.2
|
|
4.6%
|
19.0%
|
Interbank and overnight
funds
|
|
46.1
|
|
95.2
|
|
67.7
|
|
-28.9%
|
46.8%
|
Consumer
|
|
1,758.0
|
|
1,967.6
|
|
1,960.2
|
|
-0.4%
|
11.5%
|
Mortgages and housing leases
|
|
281.5
|
|
296.6
|
|
305.8
|
|
3.1%
|
8.6%
|
Microcredit
|
|
29.0
|
|
29.7
|
|
29.1
|
|
-1.9%
|
0.5%
|
Loan
portfolio interest
|
|
3,902.6
|
|
4,423.9
|
|
4,491.0
|
|
1.5%
|
15.1%
|
Interests on investments
in debt securities
|
|
262.7
|
|
196.2
|
|
238.0
|
|
21.3%
|
-9.4%
|
Total
interest income
|
|
4,165.3
|
|
4,620.1
|
|
4,728.9
|
|
2.4%
|
13.5%
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
Checking accounts
|
|
66.7
|
|
58.4
|
|
86.8
|
|
48.8%
|
30.2%
|
Time deposits
|
|
721.2
|
|
938.5
|
|
917.8
|
|
-2.2%
|
27.3%
|
Savings deposits
|
|
457.1
|
|
617.0
|
|
574.6
|
|
-6.9%
|
25.7%
|
Total
interest expenses on deposits
|
|
1,245.0
|
|
1,613.9
|
|
1,579.2
|
|
-2.1%
|
26.8%
|
Borrowings
|
|
554.8
|
|
694.5
|
|
567.7
|
|
-18.3%
|
2.3%
|
Interbank borrowings and
overnight funds
|
|
149.1
|
|
76.1
|
|
82.7
|
|
8.6%
|
-44.6%
|
Borrowings from banks and
others
|
|
122.5
|
|
206.6
|
|
187.2
|
|
-9.4%
|
52.9%
|
Bonds
|
|
283.3
|
|
411.8
|
|
297.8
|
|
-27.7%
|
5.1%
|
Borrowings
from development entities
|
|
48.2
|
|
(2.8)
|
|
42.2
|
|
N.A
|
-12.4%
|
Total
interest expense
|
|
1,848.1
|
|
2,305.5
|
|
2,189.1
|
|
-5.0%
|
18.5%
|
Net
interest income
|
|
2,317.2
|
|
2,314.6
|
|
2,539.8
|
|
9.7%
|
9.6%
|
12
|
|
Our net interest
income increased by 9.6% to Ps 2,539.8 for 1Q17 versus 1Q16 and by 9.7% versus 4Q16. The increase versus 1Q16 was derived from
a 13.5% increase in total interest income and a 18.5% increase in total interest expense. The improvement versus 4Q16 was driven
by a better performance of the fixed income portfolio and the decline in cost of funds.
Our Net Interest Margin
(1)
was 5.9% for 1Q17, 5.5% in 4Q16, and 5.6% in 1Q16. Net Interest Margin on Loans was 6.8% for 1Q17, 6.4% in 4Q16 and 6.6%
in 1Q16. On the other hand, our Net Investments Margin was 0.6% in 1Q17 versus 0.3% in 4Q16 and 1.0% in 1Q16.
Our Net Interest Margin from our
financial operation (excluding non-financial sector and holding company) was 6.1% for 1Q17, and 5.9% for both 4Q16 and in 1Q16.
Net Interest Margin on Loans from our financial operation (excluding non-financial sector and holding company) was 7.1% for 1Q17,
7.0% in 4Q16 and 6.9% in 1Q16.
2. Impairment loss on financial
assets, net
Our impairment loss on financial assets,
net increased by 10.7% to Ps 741.9 billion for 1Q17 versus 1Q16 and decreased by 5.5% versus 4Q16.
Impairment
loss on financial assets, net
|
|
1Q16
|
|
4Q16
|
|
1Q17
|
|
Δ
|
|
|
|
|
1Q17
vs. 4Q16
|
1Q17
vs. 1Q16
|
Impairment
loss on loans and accounts receivable
|
|
718.5
|
|
861.9
|
|
791.3
|
|
-8.2%
|
10.1%
|
Recovery of charged-off
assets
|
|
(49.7)
|
|
(108.8)
|
|
(54.9)
|
|
-49.5%
|
10.7%
|
Impairment loss on other
financial assets
|
|
1.2
|
|
32.4
|
|
5.6
|
|
-82.8%
|
N.A.
|
Impairment
loss on financial assets, net
|
|
670.1
|
|
785.5
|
|
741.9
|
|
-5.5%
|
10.7%
|
Our annualized gross cost of risk
was 2.1% for 1Q17, 2.3% for 4Q16 and 2.0% for 1Q16. Net of recoveries of charged-off assets our ratio was 1.9% for 1Q17, 2.0%
for 4Q16, and 1.9% for 1Q16.
(1)
Grupo
Aval’s NIM without income from investment securities held for trading through profit or loss was 5.8% for 1Q17, 5.4% for
4Q16 and 5.6% for 1Q16.
13
|
|
3. Non-interest income
Total
non-interest income
|
|
1Q16
|
|
4Q16
|
|
1Q17
|
|
Δ
|
|
|
|
|
1Q17
vs. 4Q16
|
1Q17
vs. 1Q16
|
Income
from commissions and fees
|
|
|
|
|
|
|
|
|
|
Banking fees
(1)
|
|
905.7
|
|
911.8
|
|
919.4
|
|
0.8%
|
1.5%
|
Trust and portfolio management
activities
|
|
34.5
|
|
130.2
|
|
76.8
|
|
-41.0%
|
122.8%
|
Pension and severance fund
management
|
|
213.5
|
|
193.2
|
|
240.8
|
|
24.6%
|
12.8%
|
Bonded warehouse services
|
|
41.9
|
|
48.8
|
|
44.3
|
|
-9.3%
|
5.6%
|
Total
income from commissions and fees
|
|
1,195.6
|
|
1,284.0
|
|
1,281.2
|
|
-0.2%
|
7.2%
|
Expenses for commissions
and fees
|
|
145.3
|
|
173.3
|
|
151.0
|
|
-12.9%
|
3.9%
|
Net
income from commissions and fees
|
|
1,050.3
|
|
1,110.8
|
|
1,130.2
|
|
1.7%
|
7.6%
|
|
|
|
|
|
|
|
|
|
|
Net
trading income
|
|
132.8
|
|
237.7
|
|
32.2
|
|
-86.4%
|
-75.7%
|
Net income from financial
instruments designated at fair value
|
|
41.7
|
|
50.5
|
|
44.2
|
|
-12.6%
|
5.9%
|
|
|
|
|
|
|
|
|
|
|
Other
income (expense)
|
|
|
|
|
|
|
|
|
|
Foreign exchange gains
(losses), net
|
|
200.9
|
|
(15.7)
|
|
196.3
|
|
N.A
|
-2.3%
|
Net gain on sale of investments
|
|
147.8
|
|
5.2
|
|
3.8
|
|
-27.0%
|
-97.4%
|
Gain on the sale of non-current
assets held for sale
|
|
2.5
|
|
4.3
|
|
4.3
|
|
0.4%
|
69.1%
|
Income from non-consolidated
investments
(2)
|
|
86.2
|
|
(65.4)
|
|
86.5
|
|
N.A
|
0.3%
|
Net gains on asset valuations
|
|
-
|
|
53.9
|
|
(1.0)
|
|
-101.9%
|
N.A
|
Income from non-financial
sector, net
|
|
212.9
|
|
279.7
|
|
172.1
|
|
-38.5%
|
-19.1%
|
Other operating income
|
|
102.3
|
|
318.5
|
|
84.8
|
|
-73.4%
|
-17.1%
|
Total
other income (expense)
|
|
752.7
|
|
580.6
|
|
546.8
|
|
-5.8%
|
-27.4%
|
|
|
|
|
|
|
|
|
|
|
Total
non-interest income
|
|
1,977.5
|
|
1,979.6
|
|
1,753.3
|
|
-11.4%
|
-11.3%
|
(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 equity
method and dividends
3.1 Net income from commissions
and fees
Net Income
from commissions and fees increased by 7.6% to Ps 1,130.2 for 1Q17 versus 1Q16 and by 1.7% in the quarter. Income from commissions
and fees increased by 7.2% to Ps 1,281.2 billion in 1Q17 versus 1Q16 and slightly decreased by 0.2% in the quarter. Excluding
FX, net income from commissions increased 12.9% and 3.2%.
3.2 Net trading income
Grupo Aval’s net
trading income includes (i) net trading income from investment securities held for trading through profit or loss, which reflects
the interest and gains/losses from mark-to-market valuation, in each case from equity and fixed income investment securities held
for trading through profit or loss, and (ii) net trading income from derivatives, which reflects the gains/losses from mark-to-market
valuation on derivatives different from that considered under hedge accounting.
Net trading income amounted to Ps 32.2 billion in 1Q17, comprised of a
Ps 90.0 billion income on investments held for trading through profit or loss and a Ps 57.8 billion loss on hedging activities,
which were offset by the Ps 196.3 billion income on foreign exchange gains (losses), net. Income from investment securities held
for trading increased by 0.6% and 9.1% when compared to 4Q16 and 1Q17, respectively.
14
|
|
3.3 Other income (expense)
Total other income (expense) for
1Q17 totaled Ps 546.8 billion decreasing by 27.4% versus 1Q16 and by 5.8% versus 4Q16. When compared with 1Q16, the result declines
by a base effect related to (i) a Ps 144.5 billion gain on the sale of CIFIN and (ii) Ps 23.6 billion of equity method recognized
on CRDS.
4. Other expenses
Total other expenses for 1Q17 totaled
Ps 2,192.3 billion decreasing by 2.8% versus 1Q16 and increasing by 0.1% versus 4Q16. Our efficiency ratio measured as operating
expenses before depreciation and amortization (excluding wealth tax) to total income, was 45.9% in 1Q17, 52.2% in 4Q16 and 44.1%
in 1Q16. The ratio of annualized operating expenses before depreciation and amortization (excluding wealth tax) as a percentage
of average total assets was 3.4% in 1Q17, 3.8% in 4Q16 and 3.4% in 1Q16. It is usual that the efficiency ratio of first quarters
is lower than the one of full year results.
5. Non-controlling Interest
Non-controlling interest in Grupo
Aval reflects: (i) the minority stakes that third party shareholders hold in each of its direct consolidated subsidiaries (Banco
de Bogotá, Banco de Occidente, Banco Popular and Banco AV Villas and Corficolombiana), and (ii) the minority stakes that
third party shareholders hold in the consolidated subsidiaries at the bank level (mainly Porvenir). For 1Q17, non-controlling
interest in the income statement was Ps 326.7 billion, showing a 0.7% decrease versus 1Q16 and a 14.9% decrease versus 4Q16. The
ratio of non-controlling interest to income before non-controlling interest was 35.8% in 1Q17, 45.6% in 4Q16 and 41.4% in 1Q16.
15
|
|
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 1,515.1 billion (Ps 805.0 billion of bank debt and Ps 710.1 billion of bonds
denominated in Colombian pesos) as of March 31
st
, 2017. It also guarantees irrevocably and unconditionally Grupo Aval
Limited’s (144A / Reg S) 2022 (USD 1,000 million) bonds under its respective indentures. As of March 31
st
, 2017
the total amount outstanding of such bonds was USD 1.0 billion, or Ps 2,887.1 billion when translated 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 1,725.4 billion of total liquid assets and a total gross indebtedness
of Ps 4,385.1 billion and a net indebtedness (including callable senior loans to subsidiaries) of Ps 2,659.7 billion as of March
31
st
, 2017:
Total
liquid assets as of March 31, 2017
|
Cash and cash equivalents
|
562.6
|
Fixed income investments
|
119.5
|
Callable Senior loans to subsidiaries
|
1,043.3
|
Total
liquid assets
|
1,725.4
|
Debt
service coverage and leverage ratios
|
|
1Q16
|
|
4Q16
|
|
1Q17
|
|
Δ
|
|
|
|
|
1Q17
vs. 4Q16
|
1Q17
vs. 1Q16
|
Double leverage (1)
|
|
1.25x
|
|
1.15x
|
|
1.17x
|
|
0.02
|
-0.08
|
Net debt / Core earnings (2)(3)
|
|
4.1x
|
|
2.8x
|
|
3.2x
(4)
|
|
0.4
|
-0.9
|
Net debt / Cash dividends (2)(3)
|
|
4.8x
|
|
3.5x
|
|
3.5x
|
|
0.1
|
-1.3
|
Core Earnings / Interest Expense (2)
|
|
3.5x
|
|
4.1x
|
|
4.2x
(4)
|
|
0.1
|
0.7
|
(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
and investments; (3) Net debt is calculated as total gross debt minus cash and cash equivalents and fixed income investments;
(4) During 1Q17 Grupo Aval has not received dividends from Banco AV Villas given that the last payment was received during September
2016 and equivalent to a 6 month payment, however, when including the 9 months of dividends decreed by the bank staring on April
2017 the annualized Net debt / Core earnings metric would be 3.0x and the Core earnings / Interest expense would be 2.9x.
16
|
|
ABOUT GRUPO AVAL
Grupo Aval
is Colombia’s largest banking group, and through our BAC Credomatic operations it is also the largest and the most profitable
banking group in Central America. Grupo Aval currently operates through four commercial banks in Colombia (Banco de Bogotá,
Banco de Occidente, Banco Popular and Banco AV Villas). It manages pension and severance funds through the largest pension and
severance fund manager in Colombia (Porvenir) and owns the largest merchant bank in Colombia (Corficolombiana), each of which
Aval controls and consolidates into its results.
Investor Relations Contacts
Tatiana Uribe
Benninghoff
Vice President
of Financial Planning and Investor Relations
Tel: +571 241
9700 x3600
E-mail:
turibe@grupoaval.com
Alejo Sánchez
García
Financial Planning
and Investor Relations Manager
Tel: +571 241
9700 x3600
E-mail:
asanchez@grupoaval.co
m
17
|
|
Grupo
Aval Acciones y Valores S.A.
|
|
|
|
|
|
|
|
|
|
Consolidated
Financial Statements Under Full IFRS
|
|
|
|
|
|
|
|
|
|
Financial Statments Under IFRS
|
|
|
|
|
|
|
|
|
|
Information in Ps.
Billions
|
|
|
|
|
|
|
|
|
|
Consolidated Statement of Financial Position
|
|
1Q16
|
4Q16
|
|
1Q17
|
|
Δ
|
|
1Q17 vs. 4Q16
|
1Q17 vs. 1Q16
|
Cash and cash equivalents
|
21,366.3
|
22,193.0
|
24,542.3
|
10.6%
|
14.9%
|
Financial assets held for investment
|
|
|
|
|
|
|
|
|
Debt securities
|
3,016.5
|
2,343.9
|
2,651.1
|
13.1%
|
-12.1%
|
Equity securities
|
1,613.7
|
1,747.6
|
1,796.2
|
2.8%
|
11.3%
|
Derivative instruments
|
1,297.7
|
502.2
|
615.7
|
22.6%
|
-52.6%
|
Total financial assets held for trading through profit or losses
|
5,927.9
|
4,593.7
|
5,063.0
|
10.2%
|
-14.6%
|
Debt securities
|
19,434.4
|
17,662.7
|
17,313.5
|
-2.0%
|
-10.9%
|
Equity securities
|
934.0
|
729.8
|
750.2
|
2.8%
|
-19.7%
|
Total available for sale financial assets
|
20,368.4
|
18,392.5
|
18,063.6
|
-1.8%
|
-11.3%
|
Investments held to maturity
|
2,288.4
|
2,570.5
|
2,636.8
|
2.6%
|
15.2%
|
Other financial assets at fair
value through profit or losses
|
|
1,933.3
|
2,072.7
|
|
2,117.7
|
|
2.2%
|
9.5%
|
Total financial assets held for
investment
|
|
30,517.9
|
27,629.4
|
|
27,881.2
|
|
0.9%
|
-8.6%
|
Loans and receivables
|
|
|
|
|
|
|
|
|
Commercial loans and leases
|
87,931.6
|
93,149.2
|
93,829.6
|
0.7%
|
6.7%
|
Commercial loans and leases
|
85,032.0
|
89,579.6
|
88,730.3
|
-0.9%
|
4.3%
|
Interbank & overnight funds
|
2,899.6
|
3,569.6
|
5,099.3
|
42.9%
|
75.9%
|
Consumer loans and leases
|
42,214.7
|
46,928.0
|
46,854.2
|
-0.2%
|
11.0%
|
Mortgages and housing leases
|
13,338.5
|
14,683.5
|
14,613.9
|
-0.5%
|
9.6%
|
Microcredit loans and leases
|
394.5
|
399.4
|
396.1
|
-0.8%
|
0.4%
|
Total loans and leases operations and receivables portfolio
|
143,879.2
|
155,160.2
|
155,693.7
|
0.3%
|
8.2%
|
Allowance for impairment of loans
and receivables
|
|
(3,814.7)
|
(4,261.4)
|
|
(4,389.7)
|
|
3.0%
|
15.1%
|
Total loans and receivables, net
|
|
140,064.6
|
150,898.7
|
|
151,304.0
|
|
0.3%
|
8.0%
|
Other accounts receivable
|
3,428.4
|
3,524.6
|
3,557.7
|
0.9%
|
3.8%
|
Hedging derivatives
|
362.7
|
128.5
|
212.0
|
65.0%
|
-41.6%
|
Non-current assets held for sale
|
154.6
|
259.5
|
240.9
|
-7.2%
|
55.8%
|
Investments in associates and joint ventures
|
875.8
|
1,146.6
|
1,134.5
|
-1.1%
|
29.5%
|
Own-use property, plant and equipment, net
|
5,774.6
|
5,899.2
|
5,738.0
|
-2.7%
|
-0.6%
|
Investment properties
|
550.6
|
612.3
|
633.9
|
3.5%
|
15.1%
|
Biological
assets
|
|
246.8
|
48.0
|
|
59.0
|
|
22.9%
|
-76.1%
|
Tangible assets
|
|
6,572.0
|
6,559.5
|
|
6,430.9
|
|
-2.0%
|
-2.1%
|
Goodwill
|
6,825.9
|
6,824.9
|
6,644.0
|
-2.7%
|
-2.7%
|
Concession arrangements rights
|
2,453.3
|
2,805.3
|
2,816.2
|
0.4%
|
14.8%
|
Other intangible
assets
|
|
635.5
|
735.0
|
|
756.9
|
|
3.0%
|
19.1%
|
Intangible assets
|
|
9,914.7
|
10,365.3
|
|
10,217.1
|
|
-1.4%
|
3.0%
|
Current
|
476.3
|
584.2
|
865.8
|
48.2%
|
81.8%
|
Deferred
|
|
635.2
|
195.0
|
|
|
144.4
|
|
-26.0%
|
-77.3%
|
Income tax assets
|
|
1,111.5
|
779.1
|
|
|
1,010.2
|
|
29.7%
|
-9.1%
|
Other assets
|
|
503.7
|
589.4
|
|
|
581.8
|
|
-1.3%
|
15.5%
|
Total assets
|
|
214,872.2
|
224,073.7
|
|
|
227,112.6
|
|
1.4%
|
5.7%
|
Derivative
instruments held for trading
|
|
1,164.0
|
640.7
|
|
581.6
|
|
-9.2%
|
-50.0%
|
Total financial liabilities at
fair value
|
|
1,164.0
|
640.7
|
|
581.6
|
|
-9.2%
|
-50.0%
|
Deposits from clients at amortized cost
|
|
136,882.7
|
143,887.1
|
146,736.3
|
2.0%
|
7.2%
|
Checking accounts
|
|
32,795.3
|
34,978.2
|
33,562.8
|
-4.0%
|
2.3%
|
Time deposits
|
|
53,545.9
|
58,006.1
|
62,182.6
|
7.2%
|
16.1%
|
Savings deposits
|
|
50,169.7
|
50,573.9
|
50,411.8
|
-0.3%
|
0.5%
|
Other deposits
|
|
371.8
|
328.8
|
579.0
|
76.1%
|
55.8%
|
Financial obligations
|
|
41,667.6
|
42,790.6
|
42,628.7
|
-0.4%
|
2.3%
|
Interbank borrowings and overnight funds
|
|
9,268.8
|
6,315.7
|
7,984.8
|
26.4%
|
-13.9%
|
Borrowings from banks and others
|
|
16,561.9
|
17,906.6
|
18,368.5
|
2.6%
|
10.9%
|
Bonds
|
|
15,836.9
|
18,568.2
|
16,275.4
|
-12.3%
|
2.8%
|
Borrowings from development entities
|
|
2,623.4
|
2,725.7
|
|
2,790.1
|
|
2.4%
|
6.4%
|
Total financial liabilities at
amortized cost
|
|
181,173.7
|
189,403.3
|
|
192,155.2
|
|
1.5%
|
6.1%
|
Hedging derivatives
|
|
121.2
|
43.4
|
37.6
|
-13.5%
|
-69.0%
|
Litigation
|
|
237.5
|
155.7
|
157.8
|
1.3%
|
-33.5%
|
Other provisions
|
|
660.8
|
464.6
|
|
483.4
|
|
4.0%
|
-26.8%
|
Provisions
|
|
898.3
|
620.4
|
|
641.2
|
|
3.4%
|
-28.6%
|
Current
|
609.0
|
405.1
|
712.2
|
75.8%
|
16.9%
|
Deferred
|
|
1,245.2
|
1,246.8
|
|
1,466.0
|
|
17.6%
|
17.7%
|
Income tax liabilities
|
|
1,854.2
|
1,651.9
|
|
2,178.2
|
|
31.9%
|
17.5%
|
Employee benefits
|
|
1,042.7
|
1,097.6
|
1,132.1
|
3.1%
|
8.6%
|
Other liabilities
|
|
5,733.0
|
5,957.2
|
|
6,681.3
|
|
12.2%
|
16.5%
|
Total liabilities
|
|
191,987.1
|
199,414.5
|
203,407.2
|
2.0%
|
5.9%
|
|
|
|
|
|
|
|
|
|
Equity attributable to owners
of the parent company
|
|
14,380.1
|
15,601.6
|
|
14,881.8
|
|
-4.6%
|
3.5%
|
Non-controlling interests
|
|
8,505.0
|
9,057.7
|
|
8,823.6
|
|
-2.6%
|
3.7%
|
Total equity
|
|
22,885.1
|
24,659.2
|
23,705.4
|
-3.9%
|
3.6%
|
Total liabilities and equity
|
|
214,872.2
|
224,073.7
|
|
227,112.6
|
|
1.4%
|
5.7%
|
18
|
|
Grupo
Aval Acciones y Valores S.A.
Consolidated
Financial Statements Under Full IFRS
Financial
Statements Under IFRS
Information
in Ps. Billions
Consolidated
Statement of Financial Position
|
|
1Q16
|
|
4Q16
|
|
1Q17
|
|
Δ
|
|
|
|
|
1Q17 vs. 4Q16
|
1Q17 vs. 1Q16
|
Interest income
|
|
|
|
|
|
|
|
|
|
Loan portfolio interest
|
3,902.6
|
4,423.9
|
4,491.0
|
1.5%
|
15.1%
|
Interests
on investments in debt securities
|
|
262.7
|
|
196.2
|
|
238.0
|
|
21.3%
|
-9.4%
|
Total interest income
|
|
4,165.3
|
|
4,620.1
|
|
4,728.9
|
|
2.4%
|
13.5%
|
Interest expense
|
|
|
|
|
|
|
|
|
|
Checking accounts
|
66.7
|
58.4
|
86.8
|
48.8%
|
30.2%
|
Time deposits
|
721.2
|
938.5
|
917.8
|
-2.2%
|
27.3%
|
Savings deposits
|
457.1
|
617.0
|
574.6
|
-6.9%
|
25.7%
|
Total interest expenses on deposits
|
1,245.0
|
1,613.9
|
1,579.2
|
-2.1%
|
26.8%
|
Borrowings
|
554.8
|
694.5
|
567.7
|
-18.3%
|
2.3%
|
Interbank borrowings and overnight funds
|
149.1
|
76.1
|
82.7
|
8.6%
|
-44.6%
|
Borrowings from banks and others
|
122.5
|
206.6
|
187.2
|
-9.4%
|
52.9%
|
Bonds
|
283.3
|
411.8
|
297.8
|
-27.7%
|
5.1%
|
Borrowings from development entities
|
|
48.2
|
|
(2.8)
|
|
42.2
|
|
N.A
|
-12.4%
|
Total interest expense
|
|
1,848.1
|
|
2,305.5
|
|
2,189.1
|
|
-5.0%
|
18.5%
|
Net
interest income
|
|
2,317.2
|
|
2,314.6
|
|
2,539.8
|
|
9.7%
|
9.6%
|
Impairment loss on financial assets
|
|
|
|
|
|
|
|
|
|
Impairment loss on loans and accounts receivable
|
718.5
|
861.9
|
791.3
|
-8.2%
|
10.1%
|
Recovery of charged-off assets
|
(49.7)
|
(108.8)
|
(54.9)
|
-49.5%
|
10.7%
|
Impairment loss on other financial assets
|
|
1.2
|
|
32.4
|
|
5.6
|
|
-82.8%
|
N.A.
|
Impairment loss on financial assets,
net
|
|
670.1
|
|
785.5
|
|
741.9
|
|
-5.5%
|
10.7%
|
Net
interest income, after impairment loss on financial assets
|
|
1,647.2
|
|
1,529.1
|
|
1,797.9
|
|
17.6%
|
9.1%
|
Income from commissions and fees
|
|
|
|
|
|
|
|
|
|
Banking fees
(1)
|
905.7
|
911.8
|
919.4
|
0.8%
|
1.5%
|
Trust and portfolio management activities
|
34.5
|
130.2
|
76.8
|
-41.0%
|
122.8%
|
Pension and severance fund management
|
213.5
|
193.2
|
240.8
|
24.6%
|
12.8%
|
Bonded warehouse
services
|
|
41.9
|
|
48.8
|
|
44.3
|
|
-9.3%
|
5.6%
|
Total income from commissions
and fees
|
|
1,195.6
|
|
1,284.0
|
|
1,281.2
|
|
-0.2%
|
7.2%
|
Expenses for
commissions and fees
|
|
145.3
|
|
173.3
|
|
151.0
|
|
-12.9%
|
3.9%
|
Net
income from commissions and fees
|
|
1,050.3
|
|
1,110.8
|
|
1,130.2
|
|
1.7%
|
7.6%
|
Net trading income
|
132.8
|
237.7
|
32.2
|
-86.4%
|
-75.7%
|
Net income from financial instruments designated at fair value
|
41.7
|
50.5
|
44.2
|
-12.6%
|
5.9%
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
Foreign exchange gains (losses), net
|
200.9
|
(15.7)
|
196.3
|
|
N.A
|
-2.3%
|
Net gain on sale of investments
|
147.8
|
5.2
|
3.8
|
-27.0%
|
-97.4%
|
Gain on the sale of non-current assets held
for sale
|
2.5
|
4.3
|
4.3
|
0.4%
|
69.1%
|
Income from non-consolidated investments
(2)
|
86.2
|
(65.4)
|
86.5
|
|
N.A
|
0.3%
|
Net gains on asset valuations
|
-
|
53.9
|
(1.0)
|
-101.9%
|
N.A
|
Income from non-financial sector, net
|
212.9
|
279.7
|
172.1
|
-38.5%
|
-19.1%
|
Other operating
income
|
|
102.3
|
|
318.5
|
|
84.8
|
|
-73.4%
|
-17.1%
|
Total
other income (expense)
|
|
752.7
|
|
580.6
|
|
546.8
|
|
-5.8%
|
-27.4%
|
Other expenses
|
|
|
|
|
|
|
|
|
|
Loss on the sale of non-current assets held
for sale
|
0.4
|
1.5
|
4.1
|
173.2%
|
N.A.
|
Personnel expenses
|
877.0
|
927.4
|
895.6
|
-3.4%
|
2.1%
|
General and administrative expenses
|
1,237.8
|
1,146.4
|
1,143.5
|
-0.3%
|
-7.6%
|
Depreciation and amortization
|
107.3
|
138.1
|
127.9
|
-7.3%
|
19.2%
|
Other operating
expenses
|
|
32.6
|
|
(23.7)
|
|
21.1
|
|
-189.1%
|
-35.1%
|
Total
other expenses
|
|
2,255.1
|
|
2,18
9.6
|
|
2,1
92.3
|
|
0.1%
|
-2.8%
|
Income
before income tax expense
|
|
1,369.5
|
|
1,319.1
|
|
1,358.9
|
|
3.0%
|
-0.8%
|
Income tax
expense
|
|
573.9
|
|
476.6
|
|
445.2
|
|
-6.6%
|
-22.4%
|
Income
from continued operations
|
|
795.6
|
|
842.4
|
|
913.7
|
|
8.5%
|
14.8%
|
Income from
discontinued operations
|
|
-
|
|
(0.1)
|
|
-
|
|
-
|
-
|
Net
income before non-controlling interest
|
|
795.6
|
|
842.5
|
|
913.7
|
|
8.4%
|
14.8%
|
Non-controlling
interest
|
|
329.2
|
384.1
|
326.7
|
-14.9%
|
-0.7%
|
Net
income attributable to the owners of the parent company
|
|
466.4
|
|
458.4
|
|
587.0
|
|
28.0%
|
25.8%
|
(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 equity method and dividends
19
|
|
Item 2
1 IFRS 1Q17 Consolidated
Earnings Results
2 Grupo Aval Acciones y Valores
S . A . (“ Grupo Aval”) is an issuer of securities in Colombia and in the United States, registered with Colombia’s
National Registry of Shares and Issuers ( Registro Nacional de Valores y Emisores ) and the United States Securities and Exchange
Commission (“SEC”) . As such, it is subject to the control of the Superintendency of Finance and compliance with applicable
U . S . securities regulation as a “foreign private issuer” under Rule 405 of the U . S . Securities Act of 1933 .
Grupo Aval is a not a financial institution and is not supervised or regulated as a financial institution in Colombia . As an
issuer of securities in Colombia, Grupo Aval is required to comply with periodic reporting requirements and corporate governance,
however, it is not regulated as a financial institution or as a holding company of banking subsidiaries and, thus, is not required
to comply with capital adequacy regulations applicable to banks and other financial institutions . All of our banking subsidiaries
(Banco de Bogotá, Banco de Occidente , Banco Popular and Banco AV Villas), Porvenir and Corficolombiana , are subject to
inspection and surveillance as financial institutions by the Superintendency of Finance . Although we are not a financial institution,
until December 31 , 2014 we prepared the unaudited consolidated financial information included in these quarterly reports in accordance
with the regulations of the Superintendency of Finance for financial institutions and generally accepted accounting principles
for banks to operate in Colombia, also known as Colombian Banking GAAP because we believe that presentation on that basis most
appropriately reflected our activities as a holding company of a group of banks and other financial institutions . However, in
2009 the Colombian Congress enacted Law 1314 establishing the implementation of IFRS in Colombia . As a result, since January
1 , 2015 financial entities and Colombian issuers of publicly traded securities such as Grupo Aval must prepare financial statements
in accordance with IFRS . IFRS as applicable under Colombian regulations differs in certain aspects from IFRS as currently issued
by the IASB . The unaudited 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 - GAAP measures such as ROAA and ROAE, among others, are
explained when required in this report . Because of our recent migration to IFRS and recent implementation of IFRS accounting
principles, the unaudited consolidated f ina ncial information for the first quarter of 2017, and the first and fourth quarter
of 2016, may be subject to further amendments. This report may include forward - looking statements, which actual results may
vary from those stated herein as a consequence of changes in general, economic and business conditions, changes in interest and
currency rates and other risks factors as evidenced in our Form 20 - F available at the SEC webpage . Recipients of this document
are responsible for the assessment and use of the information provided herein . Grupo Aval will not have any obligation to update
the information herein and shall not be responsible for any decision taken by investors in connection with this document . The
content of this document and the unaudited figures included herein are not intended to provide full disclosure on Grupo Aval or
its affiliates . When applicable, in this document we refer to billions as thousands of millions . Disclaimer
3 Highlights (1/2) The following
are the main highlights of our 1 Q 2017 results under IFRS : • Attributable net income for the quarter was Ps 587 . 0 billion
or 26 pesos per share, 25 . 8 % higher than the 1 Q 2016 result . On a consolidated basis we paid Ps 109 . 3 billion in equity
tax ( Ps 73 . 7 billion on an attributable net income basis or 3 . 3 pesos per share) . As a result of the Tax Reform of 2016
, this is the last quarter that corporations, including banks, pay equity tax . • Gross loans, excluding interbank and overnight
funds, grew by 6 . 8 % as of March 31 , 2017 when compared to March 31 , 2016 . E xcluding the impact of the FX movement in our
Central American operation, loans grew by 8 % in the last year . However, the Country’s GNP slow growth took a toll in our
loans’ growth during the first quarter of this year ; when absent the impact of the appreciation of the Colombian Peso against
the USD our loan book grew 0 . 4 % . Including FX movements total loans declined by 0 . 7 % in the first quarter . • Deposit
growth outpaced the growth of our loans during the last twelve months and during the quarter . Total deposits grew by 7 . 2 %
with respect to March 31 , 2016 ; excluding FX movements affecting our Central American operation, deposits grew by 8 . 3 % during
the last twelve months . When compared to December 31 , 2016 , deposits grew by 2 % ; excluding FX movements growth in deposits
amounted to 3 . 1 % . Consequently, our deposit to loan ratio improved to 0 . 97 x as of March 31 , 2017 from 0 . 95 x as of December
31 , 2016 . • We continue to emphasize a strong liquidity position, particularly in Central America, and as a result our
consolidated ratio of cash and cash equivalents to deposits improved from 15 . 4 % as of December 31 , 2016 to 16 . 7 % as of
March 31 , 2017 . • The NIM of our consolidated operation improved by 40 bps in 1 Q 2017 versus 4 Q 2016 , reaching 5 .
9 % . Movements in our total consolidated NIM were influenced by : • 5 % of our total funding is more expensive funding
obtained by the non - financial sector affiliates of Corficolombiana, • Our non - financial sector earning assets tripled
since 1 Q 2016 ( as a percentage of total interest earning assets) mostly as a result of the entry into service during December,
2016 of Promigas ’ Natural gas liquefaction facility whose associated concession contract is accounted for as a financial
lease ; • Average yield on total loans (non - financial and financial sectors) remained flat at 11 . 7 % , • Average
cost of total funds decreased by 40 bps in line with recent contractions in the Central Bank Rate, • NIM on loans expanded
by 40 bps, driven by lower cost of funds and a sharp increase in our non - financial sector NIM on loans, • NIM on total
investments expanded by 30 bps driven by the decrease in cost of funds,
4 Highlights (2/2) •
Our 30 day PDLs and NPLs deteriorated by 60 bps and 20 bps respectively during the quarter, primarily driven by our exposure to
Electricaribe (approx . USD 185 million) ; Electricaribe accounted for 56 pbs of deterioration in the Commercial Loan PDL ratio
and 44 bps in the Commercial Loan NPL ratio . Electricaribe also accounted for 33 bps of deterioration in the Total PDL ratio
and 26 bps in the Total NPL ratio . We also saw 40 bps deterioration in Consumer Loan PDLs (SME’s , credit cards and other
personal loans) ; however, in nominal values this deterioration amounted to approximately USD 55 million, a much smaller number
when compared to Electricaribe’s . Deterioration in general has been driven by the current low economic cycle and the still
high (yet decreasing) interest rate scenario . • Our Cost of Risk was 2 . 1 % before recoveries and 1 . 9 % after provisions,
an improvement versus the last quarter of 2016 of 20 bps and 10 bps respectively . Although these numbers reflect necessary provisions
for the deterioration in Consumer Loan asset quality, they do not take into account additional provisions for the Electricaribe
loans, which should occur between May and December 2017 , bringing total provisions to 80 % of this exposure (from an existing
13 % ) . Lesser provisions may be required if an agreement is reached between the Colombian Government and Gas Natural of Spain
or if the Government implements other plans for the company such as those recently reported in different news media . •
Gross fee Income grew by 7 % with respect to the first quarter of 2016 and remained stable when compared to the last quarter of
2016 . In absence of FX movements fee income grew by almost 12 % in the last twelve months . • Our consolidated efficiency
ratio, measured as cost to income, was 45 . 9 % in 1 Q 2017 , versus 52 . 2 % during 4 Q 2016 . This improvement is partially
explained by traditionally lower first quarter expenses but also reflects our efforts to control expenses . • As of March
31 , 2017 , all our banks continued to show strong Tier 1 and full solvency levels, between 9 . 2 % and 11 . 3 % and between 11
. 3 % and 13 . 9 % , respectively . • As of this year we have switched from two shareholder meetings per year to only one,
in line with industry practices . Consequently, on the March, 2017 shareholders’ meetings we declared dividends for a 12
month period rather than a 6 month period . Therefore, our consolidated attributable equity decreased during the quarter . •
Our ROAE and ROAA for the quarter were 15 . 4 % and 1 . 6 % respectively .
5 GDP Growth Expectations
(%) Source: Bloomberg Consensus Source : DANE. Unemployment (%) Current Account (% of GDP, quarterly) Source : Banrep and DANE
. Macroeconomic context – Colombia (1/3) 10.4% 10.2% 9.7% 8.9% 10.1% 9.7% 9.6% 8.4% 8.7% 8.6% 8.7% 2012 2013 2014 2015 2016
2017 Unemployment as of March of each period Unemployment as of December of each period 1.5 2.0 2.5 3.0 3.5 4.0 4.5 May-16 May-16
Jun-16 Jul-16 Jul-16 Aug-16 Sep-16 Sep-16 Oct-16 Nov-16 Nov-16 Dec-16 Jan-17 Jan-17 Feb-17 Mar-17 Apr-17 Apr-17 May-17 2017E 2018E
2.0 3.0 (3.1%) (3.2%) (10.0%) (8.0%) (6.0%) (4.0%) (2.0%) 0.0% 2.0% 4.0% Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16
Dec-16 Trade balance Current Account Deficit
6 1.1% 4.66% 6.25% 0% 3% 5%
8% 10% 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 may- 17 Real GDP growth Inflation Colombian Central Bank's Interest rate Inflation
(%) Source: Banrep Source : Banrep . (1) End of period DTF rate (2) End of period 3 - month interbank (IBR) rate Source: Banrep
and DANE Central Bank’s Monetary Policy Macroeconomic context – Colombia (2/3) Apr - 17: 4.66% 2.4% 2.2% 1.9% 2.8%
3.7% 4.4% 6.8% 8.6% 5.7% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 12-Month
inflation Lower target range Upper target range 2% 4% 6% 8% Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Colombian
Central Bank's Interest rate (EoP) DTF(1) IBR(2) 6.11% 6.25% 5.69% 2014: 4.4% 2015: 3.1% 2016: 2.0% 2013: 4.9% 2012: 4.0% FY GDP
7 Source: Bloomberg Source:
Bloomberg. ( 100=Jan 31, 2016) Colombian Peso Exchange Rate COP vs Emerging markets’ currencies Colombian Peso vs WTI US$/barrel
Macroeconomic context – Colombia (3/3) 1Q16 4Q16 1Q17 1Q17 vs. 1Q161Q17 vs. 4Q16 Average 3,263.493,016.072,924.26 -10.39%
-3.04% End of Period 3,000.633,000.712,885.57 -3.83% -3.84% 1,700 2,200 2,700 3,200 3,700 20 40 60 80 100 120 Jan-16 Feb-16 Mar-16
Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 WTI (US$/Lhs) COP Exchange rate
50 70 90 110 130 150 170 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17
Apr-17 May-17 Colombian Peso Brazilian Real Mexican Peso Chilean Peso Peruvian Nuevo Sol Turkish Lira
8 Macroeconomic context –
Central America (1/2) Source: IMF; (*) Average growth of all the Central American countries Real GDP CAGR Evolution Source: SECMCA,
last twelve months as of December 2016 Oil & gas imports / Total imports (%) Source: SECMCA Central Banks’ Monetary
Policies 2.50% 3.00% 5.50% 0% 1% 2% 3% 4% 5% 6% 7% Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16
Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 CR GU HO 8.8% 7.4% 6.7% 11.1% 9.5% 12.2% 8.4% Central America Panama Costa Rica El Salvador
Guatemala Honduras Nicaragua 4.1% 5.6% 4.7% 4.2% 3.8% 3.4% 2.1% 4.1% 6.1% 4.4% 4.0% 3.5% 3.6% 2.2% Central America* Panama Nicaragua
Costa Rica Guatemala Honduras El Salvador CAGRs '13-'16 CAGRs '16-'19
9 Macroeconomic context –
Central America (2/2) Illegal Migrants in USA (% Total Origin Country Pop) Total Illegal Migrants (thousands) Total Migrants in
USA (thousands) Total Remittances ($MM) Remittances / Migrant Guatemala 4.5% 723 916 5,962 6,511 Honduras 4.2% 337 588 3,195 5,431
El Salvador 7.6% 465 1,315 3,912 2,973 Source: Migration Policy Institute, Banco Mundial, Central Banks and Statistic Institutions
of each country Remittances from USA to North Triangle (2014) Total Remittances as % of GDP 16.4% 16.1% 15.7% 16.2% 16.2% 16.6%
16.6% 17.1% 10.5% 10.0% 9.2% 9.8% 9.7% 9.7% 10.1% 10.4% 16.5% 16.0% 15.5% 15.3% 16.7% 17.6% 18.4% 17.8% 2009 2010 2011 2012 2013
2014 2015 2016 ES GU HO
10 Assets Assets Breakdown
Total Assets Figures in Ps. Trillions (1) Foreign operations reflect Central American operations. (2) Net loans and leases include
interbank and overnight funds. 214.9 224.1 227.1 1Q16 4Q16 1Q17 1Q17 / 1Q16 = 5.7% 1Q17 / 4Q16 = 1.4% 1Q17 / 1Q16 = 6.9% 1Q17
/ 4Q16 = 2.5% Growth excl. FX movement of Central American Operations 65.2% 11.5% 1.6% Net loans and leases Fixed income investments
Unconsolidated equity investments Other 65.2% 11.5% 1.6% 21.7% 1Q16 66.6% 10.0% 1.6% 21.8% 1Q17 Colombian operations , 71.7% Foreign
(1) , 28.3% Colombian operations , 71.0% Foreign (1) , 29.0% Colombian operations , 71.9% Foreign (1) , 28.1% 67.3% 10.1% 1.6%
21.0% 4Q16
11 Loans Gross loans Gross
loans Breakdown Figures in Ps. Trillions – Excluding interbank and overnight funds % Growth excluding FX movement of Central
American Operations 141.0 151.6 150.6 1Q16 4Q16 1Q17 1Q17 / 1Q16 = 6.8% 1Q17 / 4Q16 = - 0.7% 1Q17 / 1Q16 = 8.0% 1Q17 / 4Q16 =
0.4% Growth excl. FX movement of Central American Operations 60.3% 59.1% 58.9% 29.9% 31.0% 31.1% 9.5% 9.7% 9.7% 0.3% 0.3% 0.3%
Commercial Consumer Mortgages Microcredit 4.3% 11.0% 9.6% 0.4% 5.1% 12.5% 12.3% 0.4% 1Q17 / 1Q16 1Q16 4Q16 1Q17 141.0 151.6 150.6
Gross loans
12 Loan portfolio quality
0.9x 0.9x 0.8x 1Q16 4Q16 1Q17 Charge offs / Average NPLs 2.7% 2.8% 2.9% 1.5x 1.4x 1.3x 0.9x 1.0x 0.8x 1Q16 4Q16 1Q17 Allowances
/ NPLs Allowance / 30+ PDLs Allowance / Gross loans 3.0% 3.0% 3.6% 1.8% 2.0% 2.2% 1Q16 4Q16 1Q17 30 days PDLs / Total loans NPLs
/ Total loans 2.0% 2.3% 2.1% 1.9% 2.0% 1.9% 1Q16 4Q16 1Q17 Impairment loss / Average loans Impairment loss (net of recoveries
of charged-off assets) / Average loans (1) 30 days PDLs and NPLs include interest account receivables. (2) NPL defined as loans
more than 90 days past due (1) 30 days PDLs and NPLs include interest account receivables. (1)(2) (1)(2) (1)(2) (1) (1) Impairment
loss / Average loans Impairment loss , net / Average loans Cost of Risk
13 Loan portfolio quality
1Q16 4Q16 1Q17 1Q16 4Q16 1Q17 Commercial 2.3% 2.1% 2.9% 1.7% 1.8% 2.2% Consumer 4.3% 4.4% 4.8% 2.1% 2.3% 2.3% Mortgages 3.2% 3.1%
3.4% 1.7% 1.7% 1.7% Microcredit 12.1% 14.1% 14.5% 7.8% 9.4% 10.0% Total loans 3.0% 3.0% 3.6% 1.8% 2.0% 2.2% Past due loans (1)
Non-performing loans (2) (1) Past Due Loans + 30 / Total Loans including interest accounts receivable (2) NPL defined as loans
more than 90 days past due including interest accounts receivable Figures in Ps. Billions 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Initial
PDLs 3,865 3,761 4,252 4,203 4,432 4,484 New PDLs 191 1,064 620 716 678 1,537 Charge-offs (295) (573) (669) (487) (627) (629)
Final PDLs 3,761 4,252 4,203 4,432 4,484 5,393
14 Funding Figures in Ps.
Trillions 1Q16 4Q16 1Q17 Others 0.3% 0.2% 0.4% Time deposits 39.1% 40.3% 42.4% Checking accounts 24.0% 24.3% 22.9% Savings accounts
36.7% 35.1% 34.4% Total deposits 1Q17 / 1Q16 = 7.2% 1Q17 / 4Q16 = 2.0% 136.9 143.9 146.7 Deposit composition 1Q17 / 1Q16 = 8.3%
1Q17 / 4Q16 = 3.1% Growth excl. FX movement of Central American Operations 1Q16 4Q16 1Q17 Interbank borrowings 5.1% 3.3% 4.2%
Long term bonds 8.7% 9.8% 8.5% Banks and others 10.6% 10.9% 11.0% Deposits 75.6% 76.0% 76.4% Total funding 181.2 189.4 192.2 Funding
composition 1Q17 / 1Q16 = 6.1% 1Q17 / 4Q16 = 1.5% 1Q17 / 1Q16 = 7.2% 1Q17 / 4Q16 = 2.6% Growth excl. FX movement of Central American
Operations 0.98x 0.95x 0.97x 1Q16 4Q16 1Q17 Deposits / Net loans (%) 15.6% 15.4% 16.7% 1Q16 4Q16 1Q17 Cash / Deposits (%)
15 Capital Attributable Shareholders
Equity Attributable Equity + Minority Interest Figures in Ps. Trillions Consolidated Capital Adequacy of our Banks (%) 1Q16 4Q16
1Q17 Minority interest 8.5 9.1 8.8 Attributable equity 14.4 15.6 14.9 1Q17 / 1Q16 = 3.6% 1Q17 / 4Q16 = - 3.9% 22.9 24.7 23.7 14.4
15.6 14.9 1Q16 4Q16 1Q17 Attributable shareholders equity 1Q17 / 4Q16 = - 4.6% 1Q17 / 1Q16 = 3.5% Total equity / Assets Tangible
capital ratio (1) 10.7% 11.0% 10.4% 7.4% 7.9% 7.4% (1) Tangible Capital Ratio is calculated as Total Equity minus Goodwill and
other Intangibles divided by Total Assets minus Goodwill and o the r Intangibles. 1Q164Q161Q17 1Q164Q161Q17 1Q164Q161Q17 1Q164Q161Q17
Primary capital (Tier 1) 10.0 9.0 9.2 9.9 10.2 10.6 10.7 9.3 9.5 10.2 10.3 11.3 Solvency Ratio 13.7 13.9 13.9 11.2 12.8 12.9 11.4
11.1 11.3 10.7 11.5 12.4
16 NIM – Net Interest
Margin (1/3) Composition of Interest Earning Assets 99.6% 99.1% 98.8% 0.4% 0.9% 1.2% 1Q16 4Q16 1Q17 Financial Sector Non-Financial
Sector + HoldCo Composition of funding 94.9% 94.9% 95.1% 5.1% 5.1% 4.9% 1Q16 4Q16 1Q17 Financial Sector Non-Financial Sector +
HoldCo Calculated as composition of average balance for the period. Non - Financial Sector + HoldCo refers to companies from the
non financial sector and the sum of Grupo Aval Acciones y Valores S.A. + 100% owned and guaranteed subsidiaries, net of eliminations.
17 3.9% 4.8% 4.5% 6.8% 8.0%
6.9% 4.1% 5.0% 4.6% 1Q16 4Q16 1Q17 10.9% 11.9% 11.6% 10.9% 11.7% 11.7% 10.0% 11.0% 12.0% 1Q16 4Q16 1Q17 NIM – Net Interest
Margin (2/3) Average Yield on Loans Average Cost of Funds Average Spread (Yield on Loans – Cost of Funds) 7.0% 7.1% 7.2%
6.9% 6.7% 7.1% 6.0% 6.5% 7.0% 7.5% 1Q16 4Q16 1Q17 Financial Sector Consolidated
18 6.9% 7.0% 7.1% 6.6% 6.4%
6.8% 1Q16 4Q16 1Q17 NIM – Net Interest Margin (3/3) Net Interest Margin (1) Loans Interest Margin (2) Net Investments Margin
(3) 5.9% 5.9% 6.1% 5.6% 5.5% 5.9% 1Q16 4Q16 1Q17 1.2% - 0.4% 0.7% 1.0% 0.3% 0.6% 1Q16 4Q16 1Q17 Financial Sector Consolidated
1Q16 4Q16 1Q17 1Q17 / 1Q16 1Q17 / 4Q16 2.4 2.4 2.6 9.6% 9.4% Net interest income(1) (trillions) (1) Net Interest Income and Net
Interest Margin: Includes net interest income plus net trading income from investment securities held for trading through profit
or loss divided by total average interest - earning assets. (2) Loans Interest Margin: Net Interest Income on Loans to Average
loans and financial leases. (3) Net Investments Margin: 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.
19 Fees and other operating
income Figures in Ps. Billions (1) Includes income from trading and hedging derivatives reflected as part of the net trading income
on the Statement of Profit or Loss. (2) Includes equity method income, dividend income and other income . Other operating income
75.8% 71.0% 71.8% 2.9% 10.1% 6.0% 17.9% 15.0% 18.8% 3.5% 3.8% 3.5% 1Q16 4Q16 1Q17 Gross fee income Banking fees Trust and portfolio
management activities Pension fees Other 1,195.6 1,284.0 1,281.2 1Q17 / 4Q16 = - 0.2% 1Q17 / 1Q16 = 7.2% 1Q17 / 1Q16 = 12.0% 1Q17
/ 4Q16 = 1.1% Growth excl. FX movement of Central American Operations 1Q16 4Q16 1Q17 Income from non-financial sector, net 212.9
279.7 172.1 Gains on valuation of assets 0.0 53.9 -1.0 Net income from financial instruments designated at fair value 41.7 50.5
44.2 Derivatives and foreign exchange gains (losses), net (1) 251.2 132.6 138.5 Income from non-consolidated investments and other
(2) 338.9 262.6 179.4 Total other operating income 844.6 779.3 533.1
20 Efficiency ratio 44.1%
52.2% 45.9% 1Q16 4Q16 1Q17 3.4% 3.8% 3.4% 1Q16 4Q16 1Q17 Efficiency Ratio is calculated as personnel plus administrative and other
expenses excluding wealth tax divided by net interest income plus net trading income, other income and fees and other services
income, net ( e xcluding others). Operating expenses / Total Income Operating expenses / Average Assets Efficiency Ratio is calculated
as annualized personnel plus administrative and other expenses excluding wealth tax divided by average of total assets.
21 466.4 458.4 587.0 1Q16
4Q16 1Q17 Net income attributable to controlling interest $20.9 $20.6 $26.3 EPS 22,281 22,281 22,281 Avg shares $29.0 645.3 Profitability
(1) ROAA for each quarter is calculated as annualized Net Income divided by average of total assets . (2) ROAE for each quarter
is calculated as annualized Net Income attributable to Aval's shareholders divided by average attributable shareholders' equity.
Figures in Ps. Billions 1.5% 1.5% 1.6% 1Q16 4Q16 1Q17 ROAA (1) 2.0% 12.9% 11.9% 15.4% 1Q16 4Q16 1Q17 ROAE (2) 11.9%
22
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
Date: June
1, 2017
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GRUPO AVAL ACCIONES Y VALORES S.A.
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By:
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/s/ Jorge Adrián
Rincón Plata
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Name:
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Jorge Adrián Rincón Plata
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Title:
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Chief Legal Counsel
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