Grupo Aval Acciones y Valores S A : Consolidated Financial Statements 4Q23

Notes

2023

2022

Assets

Cash and cash equivalents

6, 7

Ps.

18,597,861

Ps.

17,032,857

Trading assets

6, 8

15,451,121

11,841,407

Investment securities

6, 9

34,425,693

33,674,477

Hedging derivative assets

6, 10

48,662

20,854

Loans:

4.1, 6, 11

Commercial

107,440,424

110,742,842

Consumer

59,999,611

59,419,444

Mortgages

18,486,206

17,883,355

Microcredit

277,529

267,720

186,203,770

188,313,361

Loss allowance

4.1.5

(10,035,715)

(9,197,514)

Total loans, net

176,168,055

179,115,847

Other accounts receivable, net

6, 12

25,617,225

23,380,573

Non-current assets held for sale

13

101,184

92,830

Investments in associates and joint ventures

14

1,290,683

1,423,343

Tangible assets, net:

15

Property, plant and equipment for own-use and given in operating lease

4,521,792

4,812,254

Right-of-use assets

1,336,957

1,329,594

Investment properties

906,469

880,963

Biological assets

230,672

212,630

6,995,890

7,235,441

Intangibles

Concession arrangement rights

16

13,557,267

13,242,706

Goodwill

17

2,202,222

2,248,217

Other intangible assets

18

2,382,427

2,040,158

18,141,916

17,531,081

Income tax assets:

19

Current

2,596,837

1,782,658

Deferred

1,280,912

1,851,218

3,877,749

3,633,876

Other assets

465,557

608,650

Total assets

Ps.

301,181,596

Ps.

295,591,236

Luis Carlos Sarmiento Gutiérrez

María Edith González Flórez

Diana Alexandra Rozo Muñoz

President

Accountant

Auditor

T.P. 13083-T

T.P. 120741-T

Member of KPMG S.A.S.

(See my report of February 27, 2024)

Notes

2023

2022

Liabilities and equity

Liabilities

Trading liabilities

6, 8

Ps.

2,154,361

Ps.

1,757,606

Hedging derivative liabilities

6, 10

217,566

3,568

Customer deposits:

20

Checking accounts

23,809,859

25,932,053

Savings accounts

71,149,883

74,293,894

Time deposits

86,597,460

72,273,697

Other

430,194

841,505

181,987,396

173,341,149

Financial obligations:

21

Interbank borrowings and overnight funds

15,081,920

9,087,921

Borrowings from banks and others

22,218,460

30,309,358

Bonds issued

23,427,826

28,362,221

Borrowings from development entities

4,813,133

4,357,275

65,541,339

72,116,775

Provisions:

23

Legal related

217,689

229,193

Non legal related

865,594

997,978

1,083,283

1,227,171

Income tax liabilities:

19

Current

268,347

228,817

Deferred

5,546,640

5,062,670

5,814,987

5,291,487

Employee benefits

22

907,808

890,019

Other liabilities

24

11,954,440

10,141,802

Total liabilities

269,661,180

264,769,577

Equity

Owners of the parent:

25

Subscribed and paid-in capital

23,744

23,744

Additional paid-in capital

9,571,374

9,571,374

Retained earnings

7,731,773

8,018,417

Other comprehensive income

(544,219)

(1,146,565)

Equity attributable to owners of the parent

16,782,672

16,466,970

Non-controlling interests

26

14,737,744

14,354,689

Total equity

31,520,416

30,821,659

Total liabilities and equity

Ps.

301,181,596

Ps.

295,591,236

Luis Carlos Sarmiento Gutiérrez

María Edith González Flórez

Diana Alexandra Rozo Muñoz

President

Accountant

Auditor

T.P. 13083-T

T.P. 120741-T

Member of KPMG S.A.S.

(See my report of February 27, 2024)

Continuing operations

Notes

2023

2022

Interest income calculated using the effective interest method

Loan portfolio

11

Ps.

26,534,115

Ps.

17,559,516

Investments in debt securities

2,385,289

1,843,516

Total interest income

28,919,404

19,403,032

Interest expense

21.3

Deposits

(16,214,226)

(7,756,432)

Financial obligations

(6,418,204)

(3,907,963)

Total interest expense

(22,632,430)

(11,664,395)

Net interest income

6,286,974

7,738,637

Impairment (losses) recoveries on financial assets

Loans and other accounts receivable

(4,751,039)

(3,120,403)

Other financial assets

12,871

(16,723)

Recovery of charged-off financial assets

555,774

643,978

Net impairment loss on financial assets

(4,182,394)

(2,493,148)

Net interest income, after impairment losses

2,104,580

5,245,489

Income from commissions and fees

4,356,336

3,874,439

Expenses from commissions and fees

(1,003,813)

(970,676)

Net income from commissions and fees

28

3,352,523

2,903,763

Income from sales of goods and services

11,223,556

12,141,327

Costs and expenses of sales goods and services

(8,005,597)

(7,596,231)

Net profit from sales of goods and services

28

3,217,959

4,545,096

Net trading (loss) income

29

(916,049)

1,559,626

(Net losses) net income from other financial instruments mandatorily at FVTPL

16

323,685

278,751

Other income

30

3,751,306

(848,571)

Other expenses

30

(8,346,454)

(7,409,783)

Net income before tax expense

3,487,550

6,274,371

Income tax

19

(1,310,434)

(2,271,404)

Net income from continuing operations

Ps.

2,177,116

Ps.

4,002,967

Net income from discontinued operations, net of tax

1.1

-

866,166

Net income for the year

Ps.

2,177,116

Ps.

4,869,133

Net income attributable to owners of the parent

Net income for the period from continuing operations

739,003

1,888,895

Net income for the period from discontinued operations, net of tax

1.1

-

593,990

Owners of the parent

25

Ps.

739,003

Ps.

2,482,885

Net income attributable to non-controlling interests

Net income for the period from continuing operations

1,438,113

2,114,072

Net income for the period from discontinued operations, net of tax

1.1

-

272,176

Non-controlling interests

26

Ps.

1,438,113

Ps.

2,386,248

Net income for the year

Ps.

2,177,116

Ps.

4,869,133

Net income per share basic and diluted (in Colombian pesos, see note 25)

31.12

107.29

Luis Carlos Sarmiento Gutiérrez

María Edith González Flórez

Diana Alexandra Rozo Muñoz

President

Accountant

Auditor

T.P. 13083-T

T.P. 120741-T

Member of KPMG S.A.S.

(See my report of February 27, 2024)

Notes

2023

2022

Net income for the year

Ps.

2,177,116

Ps.

4,869,133

Other comprehensive income

Items that will be reclassified to profit or loss

Net gain (loss) on hedges of net investments in foreign operations:

10, 25.5

Hedged items

(797,514)

(6,675,329)

Hedging derivative instrument

-

4,051,499

Hedging non-derivative instrument

760,997

2,549,821

Cash flow hedges

10, 25.5

(35,923)

(2,396)

Foreign currency translation differences from unhedged foreign operations

25.5

(409,671)

1,356,213

Unrealized gains (losses) on securities at FVOCI

Debt financial instruments

9, 25.5

1,795,666

(2,187,495)

Investments in associates and joint ventures

14, 25.5

(35,892)

81,730

Income tax

19, 25.5

(818,733)

(1,926,071)

458,930

(2,752,028)

Items that will not be reclassified to profit or loss

Transfer from owner-occupied property to investment property

25.5

(1,963)

461

Unrealized gains (losses) on equity securities at FVOCI

9.4, 25.5

156,383

(439,150)

Actuarial (losses) gains from defined benefit pension plans

22, 25.5

(56,324)

95,819

Income tax

19, 25.5

5,501

(67,977)

103,597

(410,847)

Other comprehensive income, net of taxes

25.5

Ps.

562,527

Ps.

(3,162,875)

Total comprehensive income, net of taxes

Ps.

2,739,643

Ps.

1,706,258

Total comprehensive income for the year attributable to:

Owners of the parent

1,341,349

219,138

Non-controlling interests

1,398,294

1,487,120

Ps.

2,739,643

Ps.

1,706,258

Luis Carlos Sarmiento Gutiérrez

María Edith González Flórez

Diana Alexandra Rozo Muñoz

President

Accountant

Auditor

T.P. 13083-T

T.P. 120741-T

Member of KPMG S.A.S.

(See my report of February 27, 2024)

Grupo Aval Acciones y Valores S.A. and Subsidiaries

Consolidated Statement of Changes in Equity

For the years ended December 31, 2023 and 2022

(Amounts expressed in millions of Colombian pesos)

Equity

Subscribed

Additional

Appropriated

Other

attributable to

Non-

and paid-in

paid - in

retained

comprehensive

owners of the

controlling

capital

capital

earnings

income (OCI)

parent

interest (NCI)

Total equity

Balance at December 31, 2021

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

1,463

1,082,307

-

-

1,083,770

572,085

1,655,855

Dividends declared in shares (1)

-

-

(1,083,770)

-

(1,083,770)

(572,008)

(1,655,778)

Dividends declared in cash (1)

-

-

(119,405)

-

(119,405)

(550,390)

(669,795)

Equity transactions

-

(1,732)

-

-

(1,732)

(13,359)

(15,091)

Spin Off (2)

-

-

(6,638,961)

-

(6,638,961)

(3,019,613)

(9,658,574)

Effect of realization from OCI to retained earnings

-

-

(5,188)

-

(5,188)

(2,312)

(7,500)

Other comprehensive income

-

-

-

(2,263,747)

(2,263,747)

(899,128)

(3,162,875)

Withholding Tax over dividends

-

-

(535)

-

(535)

(4,828)

(5,363)

Net income

-

-

2,482,885

-

2,482,885

2,386,248

4,869,133

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)

-

-

(1,025,718)

-

(1,025,718)

(1,014,789)

(2,040,507)

Effect of realization from OCI to retained earnings

-

-

1,423

-

1,423

317

1,740

Other comprehensive income

-

-

-

602,346

602,346

(39,819)

562,527

Deconsolidation of entities

-

-

(1,041)

-

(1,041)

(914)

(1,955)

Withholding Tax over dividends

-

-

(311)

-

(311)

147

(164)

Net income

-

-

739,003

-

739,003

1,438,113

2,177,116

Balance at December 31, 2023

Ps.

23,744

Ps.

9,571,374

Ps.

7,731,773

Ps.

(544,219)

Ps.

16,782,672

Ps.

14,737,744

Ps.

31,520,416

Luis Carlos Sarmiento Gutiérrez

María Edith González Flórez

Diana Alexandra Rozo Muñoz

President

Accountant

Auditor

T.P. 13083-T

T.P. 120741-T

Member of KPMG S.A.S.

(See my report of February 27, 2024)

Notes

2023

2022

Cash flows from operating activities:

Net income before income tax

Ps.

3,487,550

Ps.

6,274,371

Reconciliation of net income before taxes and net cash (used) provided by

operating activities:

Depreciation of tangible assets and right-of-use assets

15, 28, 30

557,062

559,875

Amortization of intangible assets

28, 30

594,109

530,625

Impairment losses on loans and other accounts receivable

4.1.5, 28

4,802,074

3,179,476

Net interest income

(6,286,974)

(7,738,637)

Accrued dividends

30

(126,274)

(119,888)

Net gains on sales of non-current assets held for sale

30

(47,994)

(9,687)

Gain on sale of property plant and equipment for own-use

(344,742)

(140,229)

Loss on sale of investment property

22,177

17,305

Gain on biological assets

(10,467)

(13,041)

Valuations and interest from concession agreements

(3,916,465)

(5,136,704)

Foreign exchange losses (gains)

30

(2,253,925)

1,825,718

Profit of equity accounted on investments in associates and joint ventures

14, 30

(371,397)

(372,777)

Net (gains) or losses on fair value adjustments of:

Derivatives

29

2,581,132

(1,529,855)

Non-current assets held for sale

13

268

76

Investment properties

15

(84,958)

(55,930)

Biological assets

15

(18,601)

(56,859)

Changes in operating assets and liabilities:

Trading assets

(2,764,761)

545,497

Other accounts receivable

(975,734)

(2,376,815)

Derivatives

(2,091,326)

1,379,945

Other assets

(78,251)

121,837

Other liabilities and provisions

1,434,088

462,871

Employee benefits

(27,517)

7,928

Loans

(7,600,446)

(27,840,725)

Customer deposits

15,352,172

17,835,153

Interbank borrowings and overnight funds

5,881,960

(1,352,653)

Borrowings from development entities

(240,498)

408,018

Borrowings from banks and others

(3,864,609)

8,719,782

Interest received

26,104,288

16,944,928

Interest paid

(21,529,719)

(10,608,415)

Interest paid on leases

(202,362)

(146,275)

Income tax paid

(1,974,359)

(1,537,039)

Net cash provided (used in) operating activities

Ps.

6,005,501

Ps.

(222,124)

Luis Carlos Sarmiento Gutiérrez

María Edith González Flórez

Diana Alexandra Rozo Muñoz

President

Accountant

Auditor

T.P. 13083-T

T.P. 120741-T

Member of KPMG S.A.S.

(See my report of February 27, 2024)