Grupo Aval Acciones y Valores S.A.

Grupo Aval reported attributable net income of COP 577 billion, up 17% versus 2Q25, and COP 24.2 per share. ROA was 1.1% / 12.7% for the quarter, and net interest income reached COP 3.6 trillion, up 68.4% sequentially and 43.1% year over year. Total assets were COP 351 trillion, up 3.9% quarter over quarter and 4.5% year over year; gross loans grew 2.1% in the quarter and 7.6% year over year, while deposits rose 2.1% quarter over quarter and 11.5% year over year. Net interest margin was 5.5% in management commentary; Diego also cited total NIM of 5.51%, consolidated NIM on loans of 4.41%, and banking segment NIM on loans of 5.19%. Cost of risk was described as 1.49% in the prepared remarks, while Diego gave a net cost of risk of 1.9% and a gross cost of risk of 2.2%; cost to assets was 2.7%, and quarterly cost to income was 49.3%. For 2026 guidance, the company expects loan growth in the 10.5% area, commercial loan growth in the 8% area, retail loan growth in the 14% area including Itaú retail, consolidated NIM in the 4.2% area, NIM on loans in the 4.4% area, banking segment NIM in the 4.9% area, banking segment NIM on loans in the 5.2% area, net cost of risk in the 1.9% area, cost to assets in the 2.9% area, non-financial income at 1.3x 2025, an income ratio in the 22% area, and ROAE of 9.25% for 2026.

Maria Lorena Gutiérrez framed the quarter as evidence that Grupo Aval’s diversified model is holding up in a difficult environment. She highlighted the earthquake response, the group’s retail and payments initiatives, the completion of Banco de Bogotá’s Itaú retail asset transfer, and a broader technology strategy aimed at faster innovation, better data use, and stronger resilience. Her tone was confident but cautious: she repeatedly pointed to macro uncertainty, inflation, fiscal stress, and the need for investment and energy projects in Colombia.

Diego Saravia focused on the drivers of the quarter: stronger loan growth, higher fixed-income and trading income, better margin capture in the banking segment, and contained credit quality. He cited total assets of COP 351 trillion, gross loans up 2.1% sequentially, deposits at COP 221 trillion, total funding at COP 292 trillion, and bank solvency at 14.9% total and 14% Tier 1 for Banco de Bogotá. He also explained that the quarter’s margin strength was boosted by a favorable capital markets cycle and lower deposit pass-through, while cautioning that second-half results may normalize as investment gains and derivatives contributions fade and rates remain high.

Analysts pressed management on taxes, asking about possible higher bank taxes in Colombia and the impact of a Bogotá local tax proposal. Management said it hopes there will be no new taxes, but it is concerned about the proposed ICA increase in Bogotá and noted that Asobancaria estimated the sector impact at COP 500,000 million. Questions also focused on why 2026 ROAE guidance is 9.25% despite a strong first half, and management said the forecast is conservative because it does not assume another strong fixed-income quarter, includes the possibility of further rate hikes, and remains cautious on cost of risk after the earthquake. On asset quality, Diego said the firm is not concerned overall, though there may be spikes, and on consumer lending he explained that growth is being deliberately shifted away from payroll loans toward personal loans and credit cards, with the Itaú retail deal expected to accelerate that repositioning.