Grupo Aval Acciones y Valores (GRUPOAVAL) Q4 2024 earnings summary

Executive summary

• Attributable net income for 2024 reached Ps 1,015.1 billion, up 37.4% year-over-year, with ROAE at 6.0% and ROAA at 0.7%.

• Gross loans grew 7.3% to Ps 199.4 trillion and deposits rose 10.4% to Ps 201 trillion, with market share gains in all major loan segments.

• Strengthened corporate governance with new board composition and leadership, and launched Aval Valor Compartido for shared value creation.

• Acquisitions included 40.77% of Casa de Bolsa and 95.4% of Fiduciaria Corficolombiana, now Aval Casa de Bolsa and Aval Fiduciaria.

• ESG achievements included a 16-point increase in Dow Jones Sustainability Index CSA, over 70,000 jobs generated, COP 70 billion invested in social programs, and recognition for sustainability.

Financial highlights

• Total assets grew 8.9% in 2024 to Ps 327.9 trillion; gross loans grew 7.3% year-on-year to nearly Ps 200 trillion.

• Deposits increased 10.4% in 2024, representing 73.4% of funding; deposits/net loans ratio at 1.06x.

• Net income for 2024 was Ps 1,015.1 billion, up 37.4% from 2023; return on average equity for the year was 6%.

• NIM for the year was 3.4%, down 6 bps year-over-year; NIM on loans rose to 4.3%.

• Cost to assets improved to 2.7% in 2024; efficiency ratio reached 54.2%.

Outlook and guidance

• 2025 guidance: loan growth around 10%, commercial loans 9%, retail loans 11%.

• NIM expected at 4.15%, NIM on loans at 4.6%, banking segment NIM at 4.9%.

• Cost of risk net of recovery in the 2% area; cost to assets at 2.75%.

• Return on average equity expected in the 11% area for 2025.

• FY25 GDP growth guidance for Colombia is 2.7%; inflation expected at 4.1%; central bank rate projected at 7.75%.