AVAL earnings call summary

Prepared Highlights

• Net income: Q3 2025 reached COP 521 billion, highest quarterly figure in 3 years, up 25.3% YoY and 5.3% QoQ; year-to-date net income COP 1.4 trillion, 88% higher than same period 2024 (CEO, prepared).
• Loan growth: Gross loans COP 203 trillion, up 4.6% YoY and 2.1% QoQ; peso-denominated loans grew 6.1% YoY and 2.8% QoQ; consumer loans had strongest quarterly growth in 10 quarters at 1.5% QoQ; commercial loans grew 2.1% QoQ (CEO, prepared; CFO, prepared).
• Deposits: Total deposits grew 8.5% YoY and 0.4% QoQ; peso-denominated deposits from individuals grew 22% YoY (CEO, prepared; CFO, prepared).
• Net interest income (NII): COP 2.9 trillion, up 20.6% YoY and 11.6% QoQ (CFO, prepared).
• Net interest margin (NIM): Consolidated NIM 4.35%, up 35 bps QoQ; NIM on loans 4.4% (CFO, prepared).
• Asset quality: 90-day PDLs 3.37%, lowest since Q4 2022, down 15 bps QoQ and 93 bps YoY; 30-day PDLs 4.64%, down 17 bps QoQ and 113 bps YoY (CFO, prepared).
• Cost of risk: Net of recoveries 1.9% for Q3 2025, in line with full-year expectation (CFO, prepared).
• Return on equity (ROE): 11.5% for Q3 2025 (CEO, prepared; CFO, prepared).
• Return on assets (ROA): 1% for Q3 2025 (CFO, prepared).
• Aval Fiduciaria: Expected to become largest fiduciary in Colombia by assets under management with COP 201 trillion and 21% market share in fee income; fee income projected to grow ~13.2% in 2026 vs 2025, exceeding COP 635 billion (Jorge Castaño, prepared).
• Gou Payments: In first month, processed more than 10 million transactions totaling COP 2 trillion; over 8 million keys to individuals, 62% Tag Aval; market share over 45% in merchant keys with more than 1 million keys (Jorge Otalvaro, prepared).

Official Guidance

• 2025: ROE ~10.5%; loan growth ~4.5% (commercial ~2%, retail ~8.5%); consolidated NIM ~4% (NIM on loans ~4.5%); banking segment NIM ~4.6% (NIM on loans ~5.1%); cost of risk net of recoveries ~1.9%; cost to assets ~2.75%; nonfinancial sector income ~85% of 2024; fee income ratio ~21% (CFO, prepared).
• 2026: Loan growth ~8% (commercial ~7%, retail ~9%); total NIM ~4.3% (NIM on loans ~5.2%); banking segment NIM ~5% (NIM on loans ~5.6%); cost of risk net of recoveries ~2%; cost to assets ~2.8%; nonfinancial sector income ~1.3x 2025; fee income ratio ~21%; ROE in 12%–12.5% range (CFO, prepared).

Mgmt Quotes

• "This quarter, we reached a year-to-date net income of COP 1.4 trillion, 88% higher than the same period of 2024." (CEO)
• "Our financial performance continued to improve with net income for the quarter reaching COP 521 billion, resulting in an 11.5% return on equity." (CEO)
• "Aval Fiduciaria is set to become the largest fiduciary in Colombia by assets under management with COP 201 trillion and the leading institution in fee income with 21% of the market share." (Jorge Castaño)
• "We processed more than 10 million transactions with a total amount of COP 2 trillion." (Jorge Otalvaro)
• "We expect 2025 cost of risk to be in the 1.9% area." (CFO)

Prepared Metrics