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

Executive summary

• Net income for 2025 reached COP 1.7 trillion, up 70% year-over-year, with ROAE at 9.6% and ROAA at 1.0%, driven by strong banking and Corficolombiana performance.

• 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 MFG.

• Corficolombiana completed significant acquisitions in infrastructure and energy, including a 51% stake in Sencia and Promigas' acquisition of Zelestra's renewable platform.

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

Financial highlights

• Net interest income grew 17.4% to COP 5.93 trillion; consolidated NIM rose 28 bps to 3.8%.

• Cost of risk improved to 1.9% from 2.3%; cost-to-income ratio improved 101 bps to 52.2%.

• Total assets increased 6.4% year-over-year to COP 348.9 trillion.

• Net income from continued operations for Q4 was COP 474 billion, up 67.5% year-over-year.

• NIM on loans was 4.71% consolidated, 5.44% in the banking segment.

Outlook and guidance

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

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

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

• Macroeconomic headwinds expected from inflation, high interest rates, and political uncertainty.

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