Grupo Aval Acciones y Valores (GRUPOAVAL) Q3 2025 earnings summary

Executive summary

• Year-to-date net income reached COP 1.4 trillion, up 88% year-over-year; quarterly net income was COP 521 billion (Ps 521.0 billion), the highest in two years, up 25.3% year-over-year and 5.3% sequentially, with EPS at Ps 21.9 per share.

• Strong net interest income, improved loan quality, loan growth, and cost containment drove results.

• Strategic focus on retail funding, digital payments (GOU Payments), operational synergies, and asset management expansion.

• Sustainability initiatives advanced, with recognitions in ESG, a sustainable portfolio of COP 35 trillion, and major social projects benefiting over 21,500 people.

• Market share as of August 2025 was 25.1%, with gains in consumer and mortgage loans but a decline in commercial loans.

Financial highlights

• Net interest income grew 20.6% year-over-year and 11.6% quarter-on-quarter to COP 2.9 trillion (Ps 1,872.1 billion); NIM improved to 4.35% consolidated and 4.42% on loans.

• Gross loans grew 4.6% year-over-year to Ps 203.4 trillion; deposits increased 8.5% to Ps 212.6 trillion.

• Return on equity for the quarter was 11.5%; return on assets was 1%.

• Cost of risk was 1.9% for the quarter; 90-day PDLs improved to 3.4%.

• Fee income rose 11.8% year-over-year and 7.5% quarter-on-quarter.

Outlook and guidance

• 2025 guidance: ROE ~10.5%, loan growth ~4.5% (retail 8.5%, commercial 2%), NIM ~4%, cost of risk ~1.9%.

• 2026 guidance: ROE 12–12.5%, loan growth ~8% (retail 9%, commercial 7%), NIM ~4.3%, cost of risk ~2%.

• Expect stable policy rates through early 2026, with cuts beginning in Q2 2026.

• Asset quality expected to remain stable; cost structure improvements anticipated from operational synergies.

• FY25 GDP growth guidance for Colombia is 2.7%; end-of-period 2025 inflation guided at 5.2%, with central bank rate at 9.25%.