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

Executive summary

• Attributable net income for 2024 reached COP 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% year-over-year to nearly COP 200 trillion, and deposits increased 10.4% to COP 201 trillion.

• Market share gains in deposits and loans, with notable increases in commercial, consumer, and mortgage segments.

• Strengthened corporate governance with new board composition, leadership, and advanced digital transformation and ESG initiatives.

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

Financial highlights

• Total assets grew 8.9% year-over-year to COP 328 trillion; gross loans reached nearly COP 200 trillion, up 7.3% year-over-year.

• Deposits grew 10.4% year-over-year, representing 73.4% of funding; deposits to net loans ratio at 1.06x.

• Net income for Q4 was COP 281 billion, with ROAE at 6.5%; full-year net income was COP 1,015 billion, up 37.4% from 2023.

• NIM on loans for 2024 was 4.3%, up from 4.0% in 2023; consolidated NIM was 3.4%.

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

Outlook and guidance

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

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

• Cost of risk net of recovery at 2%; cost to assets at 2.7%.

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

• FY25 GDP growth guidance for Colombia is 2.7%; end-of-period 2025 inflation expected at 4.1%.