AVAL earnings call summary

Prepared Highlights

• Full-year 2025 attributable net income from continued operations reached COP 1.72 trillion (COP 72.5 per share), a ~70% increase vs. 2024 (prepared).
• Q4 2025 attributable net income from continued operations was COP 474 million, +57.5% YoY (prepared).
• Gross loans (continued ops) ended 2025 at COP 190.9 trillion, +4.6% YoY; peso-denominated loans grew 6.8% YoY (prepared).
• Consolidated NIM on loans for 2025 expanded 28 bps YoY to 4.71%; Q4 NIM on loans reached 5.05%, the best in 12 quarters (prepared).
• Cost of risk net of recoveries for 2025 fell 38 bps to 1.9%; Q4 cost of risk was 1.7%, the lowest in 12 quarters (prepared).
• Annual ROAE from continued operations was 9.6%, +366 bps vs. 2024; annual ROAA was 1.0%, +28 bps (prepared).
• 30-day PDLs improved 98 bps YoY to 4.37%; 90-day PDLs improved 77 bps to 3.29% (prepared).
• Deposits grew 11.2% YoY; deposit-to-net-loan ratio closed at 113% (prepared).
• Annual gross fee income grew 6.8%; pension and trust fees grew 9.1% and 14.9% respectively (prepared).
• Nonfinancial sector income in 2025 was 84% of 2024; Q4 income was affected by lower energy/gas and infrastructure contributions (prepared).
• Promigas recognized a one-time fair value gain of COP 303 billion on a pipeline, offset by a COP 359 billion deferred tax liability remeasurement, net negative COP 56 billion to net income (prepared).

Official Guidance (2026)

• Loan growth: ~10% (commercial +7%, retail +14%) (CFO)
• Total NIM: ~4.3% area; NIM on loans: ~4.7% area (CFO)
• Banking segment NIM: ~5.1% area; NIM on loans: ~5.4% area (CFO)
• Cost of risk net of recoveries: ~2% area (CFO)
• Cost to assets: ~2.8% area (CFO)
• Nonfinancial sector income: 1.3x 2025 level (CFO)
• Fee income ratio: ~21% area (CFO)
• 2026 ROAE: ~10.5% area (CFO)
• Note: Guidance does not incorporate the recently announced wealth tax, estimated to impact ROE by ~1 percentage point (CFO).

Mgmt Quotes

• "We reached COP 1.7 trillion in net income during 2025, a 70% increase compared to the previous year and more than twice that of 2023." (CEO)
• "Our risk-adjusted NIM on loans for the quarter stood at 3.34%, the highest level in 3 years, while our cost of risk continued its positive trend." (CEO)
• "The divestment of MFG strengthens Banco de Bogota's position to pursue a stronger growth in its core market and reallocate capital towards businesses with a stronger strategic alignment and long-term potential." (CEO)
• "Annual expenses grew 9.6% during the year. Personnel expenses grew 6.9% year-on-year, well below the 9.5% increase in Colombia's minimum wage." (CFO)
• "We expect 2026 to continue to be challenging in Colombia given the effects of political volatility and electoral uncertainty." (CEO)

Prepared Metrics