Grupo Aval Acciones y Valores (GRUPOAVAL) Q4 2025 earnings summary

Executive summary

• Net income for 2025 reached COP 1.72 trillion, up 69.6% year-over-year, with ROAE at 9.6% and ROAA at 1.0%, driven by strong banking and Corficolombiana results.

• Gross loans grew 4.8% to COP 190.9 trillion and deposits rose 11.2% to COP 207.4 trillion.

• Major milestones included the merger of trust companies, acquisition of Banco Itaú's Colombia retail business, and divestment of Multi Financial Group (MFG).

• Sustainability efforts advanced, with COP 44.9 trillion in sustainable loans and significant ESG recognitions, including inclusion in S&P 2026 Sustainability Yearbook.

• Loan portfolio quality improved, with 90-day PDLs at 3.3% and cost of risk down to 1.9%.

Financial highlights

• Net interest income rose 17.4% year-over-year to COP 59.3 billion; consolidated NIM increased 28 bps to 3.8%.

• Cost of risk improved to 1.9% from 2.3%; efficiency ratio improved to 52.2%, down 101 bps year-over-year.

• Total assets increased 6.4% year-over-year to COP 349 trillion.

• Deposit to net loan ratio closed at 1.13x; total funding increased 8.7% year-over-year.

• Allowance for impairment/gross loans was 4.4% in 4Q25.

Outlook and guidance

• 2026 guidance: loan growth around 10%, commercial loans at 7%, retail loans at 14%.

• Total NIM expected near 4.3%, cost of risk at 2%, cost to assets at 2.8%, and ROE at 10.5%.

• Guidance excludes impact of new wealth tax, which could reduce ROE by 1 percentage point.

• Economic and political volatility expected to persist in 2026, with inflation and interest rates remaining elevated.

• GDP growth for Colombia projected at 2.6% for 2025, with guidance at 2.4% for FY26.