Grupo Aval Acciones y Valores (GRUPOAVAL) Q2 2025 earnings summary

Executive summary

• Attributable net income for Q2 2025 was COP 494.9 billion, up 36.9% quarter-over-quarter and 142.2% year-over-year, with EPS at COP 20.8 per share.

• ROAE reached 11.3% and ROAA 1.1% for the quarter, both showing significant improvement year-over-year.

• Gross loans grew 3.2% year-over-year to COP 199.4 trillion, and deposits rose 6.8% to COP 211.8 trillion.

• Loan portfolio quality improved, with 90-day PDLs at 3.5% and cost of risk at 1.7%.

• Strategic focus on improving deposit mix, digital transformation, and operational synergies.

Financial highlights

• Net interest margin (NIM) reached 4.0%, up 58 bps year-over-year; NIM on loans at 4.5%.

• Efficiency ratio improved to 52.0%, down 273 bps year-over-year.

• Cost of risk for Q2 was 1.7%, lowest since Q1 2023; year-to-date cost of risk at 4.81%.

• Non-interest income totaled COP 2,421.8 billion, up 24.6% year-over-year, with net trading income surging 67.6%.

• Total assets reached COP 376 trillion, up 6% year-over-year.

Outlook and guidance

• 2025 ROAE expected in the 10.5% area; loan growth near 7%, with commercial loans at 5% and retail at 9%.

• Consolidated NIM guided at 4%, NIM on loans at 4.5%; banking segment NIM at 4.7%, NIM on loans at 5.3%.

• Cost of risk net recoveries expected at 1.95%; cost to assets at 2.75%.

• Loan growth trend expected to consolidate in H2 2025, especially in commercial loans.

• Positive performance expected to continue in the pension and severance fund management segment.