SEC Form 6-K filed by Grupo Aval Acciones y Valores S.A.

UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report Of Foreign Private Issuer

Pursuant To Rule 13a-16 Or 15d-16 Of

The Securities Exchange Act Of 1934

For the month of August 2024

Commission File Number: 000-54290

Grupo Aval Acciones y Valores S.A.

(Exact name of registrant as specified in its charter)

Carrera 13 No. 26A - 47

Bogotá D.C., Colombia

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

GRUPO AVAL ACCIONES Y VALORES S.A.

TABLE OF CONTENTS

Item 1

	Disclaimer

Grupo Aval Acciones y Valores S.A. (“Grupo Aval”) is an issuer of securities in Colombia and in the United States (“SEC”). As such, it is subject to compliance with securities regulation in Colombia and applicable U.S. securities regulation. Grupo Aval is also subject to the inspection and supervision of the Superintendency of Finance as holding company of the Aval financial conglomerate.

The consolidated financial information included in this document is presented in accordance with IFRS as currently issued by the IASB. Details of the calculations of non-IFRS measures such as ROAA and ROAE, among others, are explained when required in this report.

This report includes forward-looking statements. In some cases, you can identify these forward-looking statements by words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of these and other comparable words. Actual results and events may differ materially from those anticipated herein as a consequence of changes in general, economic and business conditions, changes in interest and currency rates and other risk described from time to time in our filings with the Registro Nacional de Valores y Emisores and the SEC.

Recipients of this document are responsible for the assessment and use of the information provided herein. Matters described in this presentation and our knowledge of them may change extensively and materially over time, but we expressly disclaim any obligation to review, update or correct the information provided in this report, including any forward looking statements, and do not intend to provide any update for such material developments prior to our next earnings report.

The content of this document and the figures included herein are intended to provide a summary of the subjects discussed rather than a comprehensive description.

When applicable, in this document we refer to billions as thousands of millions.

1

	Report of 2Q2024 consolidated results
	Information reported in Ps billions and under IFRS, except per share information

ABOUT GRUPO AVAL

Grupo Aval, leading financial conglomerate in Colombia, operates through: four commercial banks in Colombia (Banco de Bogotá, Banco de Occidente, Banco Popular and Banco AV Villas), the largest private pensions and severance fund manager in Colombia (Porvenir), and the largest merchant bank in Colombia (Corficolombiana). In addition, it is present in Panama through Multibank's operation through Banco de Bogotá.

Grupo Aval Acciones y Valores S.A. ("Grupo Aval") is an issuer of securities in Colombia and the United States ("SEC").

As of June 30, 2024, the Company has the following issuances:

Main domicile: Bogotá D.C., Colombia

Address: Carrera 13 No 26A – 47- 23rd Floor

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	Table of contents

3

	Report of 2Q2024 consolidated results
	Information reported in Ps billions and under IFRS, except per share information

Bogotá, August 14^th, 2024. Grupo Aval S.A. (NYSE:AVAL) reported a consolidated attributable net income of Ps 204.3 billion (Ps 8.6 pesos per share) for 2Q24 . ROAE was 4.9% and ROAA was 0.6% for 2Q24.

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	Report of 2Q2024 consolidated results
	Information reported in Ps billions and under IFRS, except per share information

Gross loans excludes interbank and overnight funds. PDLs 90+ defined as loans more than 90 days past due. Cost of Risk calculated as Impairment loss on loans and other accounts receivable net of recoveries of charged-off assets divided by average gross loans. Net Interest Margin includes net interest income plus net trading income from debt and equity investments at FVTPL divided by total average interest-earning assets. Fee income ratio is calculated as net income from commissions and fees divided by net interest income plus net income from commissions and fees, gross profit from sales of goods and services, net trading income, net income from other financial instruments mandatory at FVTPL and total other income. Efficiency Ratio is calculated as total other expenses divided by net interest income plus net income from commissions and fees, gross profit from sales of goods and services, net trading income, net income from other financial instruments mandatory at FVTPL and total other income. ROAA is calculated as annualized Net Income divided by average of total assets. ROAE is calculated as Net Income attributable to Aval's shareholders divided by average attributable shareholders' equity. NS refers to non-significant figures.

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	Report of 2Q2024 consolidated results
	Information reported in Ps billions and under IFRS

Grupo Aval Acciones y Valores S.A.

Consolidated Financial Statements Under IFRS 

Financial Statements Under IFRS

Information in Ps. Billions

(1) NIM is calculated as Net Interest Income divided by the average of Interest Earning Assets;

(2) Efficiency Ratio is calculated as total other expenses divided by net interest income plus net income from commissions and fees, gross profit from sales of goods and services, net trading income, net income from other financial instruments mandatory at FVTPL and total other income;

(3) ROAA is calculated as Income before Minority Interest divided by the average of total assets for each quarter;

(4) ROAE is calculated as Net Income attributable to Grupo Aval’s shareholders divided by the average of shareholders´ attributable equity for each quarter;

(5) PDLs 90+ defined as loans more than 90 days past due include interest accounts receivables. Gross loans excluding interbank and overnight funds;

(6) Refers to average gross loans for the period;

(7) Tangible Equity Ratio is calculated as Total Equity minus Intangibles (excluding those related to concessions) divided by Total Assets minus Intangibles (excluding those related to concessions);

(8) Based on Preferred share prices.

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	Report of 2Q2024 consolidated results
	Information reported in Ps billions and under IFRS

Consolidated Financial Results

Statement of Financial Position Analysis

1. Assets

Total assets as of June 30^th , 2024 totaled Ps 316,615.6 billion showing an increase of 6.2% versus total assets in June 30^th, 2023 and an increase of 3.2% versus March 31^st, 2024. Growth was mainly driven by (i) a 3.4% year over year growth in total loans, net to Ps 184,018.1 billion and (ii) a 13.5% year over year growth in investment securities, net to Ps 37,257.8 billion, (iii) a 13.3% year over year increase in other assets equivalents to Ps 36,156.4 billion.

1.1 Loan portfolio

Gross loans (excluding interbank and overnight funds) increased by 4.8% between June 30^th, 2024 and June 30^th, 2023 to Ps 193,171.1 billion mainly driven by (i) a 5.9% increase in commercial loans to Ps 112,647.5 billion, (ii) a 10.8% increase in Mortgages loans to Ps 19,666.3 billion, and (iii) a 0.9% increase in Consumer loans to Ps 60,561.7 billion.

Interbank & overnight funds decreased by 51.3% to Ps 1,430.9 billion versus 2Q23.

Loss allowance was Ps 10,583.9 billion as of June 30^th, 2024 taking net loans to Ps 184,018.1 billion.

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	Report of 2Q2024 consolidated results
	Information reported in Ps billions and under IFRS

The following table shows the gross loan composition per product of each of our loan categories.

In terms of gross loans (excluding interbank and overnight funds), 92.1% are domestic and 7.9% are foreign (reflecting the Multi Financial Holding operation). In terms of currency, 82.6% are peso denominated loans and 17.4% are USD denominated.

A 8.0% quarterly depreciation of the Peso relative to the U.S. Dollar, favoured growth metrics for US Dollar denominated loans in Pesos.

Commercial loans increased by 5.9% versus 2Q23 and 2.9% versus 1Q24. Over the year, Peso denominated loans increased by 5.5%, while dollar denominated loans increased 8.2% in dollar terms.

Consumer Loans increased 0.9% versus 1Q24 and 2Q23. Peso denominated consumer loans grew 0.4% yearly, while dollar denominated loans increased 8.4% in dollar terms.

Mortgages increased by 10.8% versus 2Q23 and 4.3% versus 1Q24. Over the year, Peso denominated loans increased by 14.2%, while dollar denominated loans increased 2.8% in dollar terms.

The following table shows the loans and receivables composition per segment.

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	Report of 2Q2024 and consolidated results
	Information reported in Ps billions and under IFRS

Consumer portfolio PDLs reached their peak during 1Q24. 30 PDLs and 90 PDL for total loans remained relatively stable during the quarter.

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	Report of 2Q2024 consolidated results
	Information reported in Ps billions and under IFRS

Our 30 days PDL to total loans were 5.8% for 2Q24, 5.9% for 1Q24 and 5.1% for 2Q23. The ratio of 90 days PDL to total loans was 4.2% for 2Q24, 4.1% for 1Q24 and 3.6% for 2Q23.

Loans classified as stage 2 and 3 were 12.1% for 2Q24, 12.3% for 1Q24 and 11.3% for 2Q23. Allowance for stage 2 and 3 loans / stage 2 and 3 loans remained stable over the last 12 months and stood at 37.4% for 2Q24, 38.0% for 1Q24 and 37.3% for 2Q23.

Grupo Aval’s coverage over its 90 days PDL was 1.3x for 2Q24, 1.3x for 1Q24, and 1.4x for 2Q23, coverage over its 30 days PDL was 0.9x in 2Q24, 1.0x for 1Q24 and 1.0x 2Q23.

Impairment loss, net of recoveries of charged off assets to average gross loans was 2.1% for 2Q24, 2.9% for 1Q24, and 2.2% 2Q23. Charge-offs to average gross loans was 2.7% for 2Q24, 2.5% for 1Q24, and 2.7% in 2Q23.

(*) Gross loans exclude interbank and overnight funds. 30 days past due and 90 days past due are calculated on a capital plus interest accounts receivable basis.

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	Report of 2Q2024 consolidated results
	Information reported in Ps billions and under IFRS

1.2 Investment securities and trading assets

Total investment securities and trading assets increased 16.7% to Ps 53,789.1 billion between June 30^th, 2024 and June 30^th, 2023 and increased 3.6% versus March 31^st, 2024.

Ps 44,631.2 billion of our total portfolio is invested in debt securities, which increased by 20.2% between June 30^th , 2024 and June 30^th, 2023 and increased by 3.9% versus March 31^st, 2024. Ps 8,049.1 billion of our total investment securities is invested in equity securities, which increased by 14.1% between June 30^th, 2024 and June 30^th, 2023 and increased by 3.9% versus March 31^st, 2024.

The average yield on our debt and equity investment securities (trading assets, investments in debt securities at FVTPL, investments in securities at FVOCI and investments in debt securities at AC) was 7.5% for 2Q24, 7.9% for 1Q24 and 9.1% for 2Q23.

1.3 Cash and Cash Equivalents

As of June 30^th, 2024 cash and cash equivalents had a balance of Ps 19,296.3 billion showing an increase of 0.5% versus June 30^th, 2023 and 3.9% versus March 31^st, 2024.

The ratio of cash and cash equivalents to customer deposits was 9.7% at June 30^th, 2024, 9.8% at March 31^st, 2024, and 10.6% at June 30^th, 2023.

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	Report of 2Q2024 consolidated results
	Information reported in Ps billions and under IFRS

1.4 Goodwill and Other Intangibles

Goodwill and other intangibles as of June 30^th, 2024 reached Ps 18,626.0 billion, increasing by 3.8% versus June 30^th, 2023 and 2.2% versus March 31^st, 2024.

Goodwill as of June 30^th , 2024 was Ps 2,214.1 billion, decreasing by 0.05% versus June 30^th, 2023 and an increase of 0.5% versus March 31^st, 2024.

Other intangibles, which include “concession arrangement rights” and other intangibles, mainly reflect the value of road concessions recorded for the most part at Corficolombiana. Other intangibles as of June 30^th, 2024 reached Ps 16,411.9 billion and grew by 4.3% versus June 30^th, 2023 and increased by 2.5% versus March 31^st, 2024.

2. Liabilities

As of June 30^th, 2024 Total Funding represented 92.6% of total liabilities and other liabilities represented 7.4%.

2.1 Funding

Total Funding (Total financial liabilities at amortized cost) which includes (i) Customer deposits, (ii) Interbank borrowings and overnight funds, (iii) Borrowings from banks and others, (iv) Bonds issued, and (v) Borrowing from development entities had a balance of Ps 263,894.8 billion as of June 30^th, 2024 showing an increase of 6.8% versus June 30^th, 2023 and 3.4% versus March 31^st, 2024. Total customer deposits represented 75.2% of total funding as of 2Q24, 74.1% for 1Q24, and 72.9% for 2Q23.

Average cost of funds was 8.2% for 2Q24, 8.9% for 1Q24 and 9.0% for 2Q23.

2.1.1 Customer deposits

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	Report of 2Q2024 consolidated results
	Information reported in Ps billions and under IFRS

Of our total customer deposits as of June 30^th, 2024, checking accounts represented 11.6%, time deposits 47.5%, savings accounts 40.7%, and other deposits 0.1%.

The following table shows the customer deposits composition by segment.

2.1.2 Borrowings from Banks and Other (includes borrowings from development entities)

As of June 30^th, 2024 borrowings from banks and other totaled Ps 25,639.8 billion, decreasing 8.6% versus June 30^th, 2023 and 1.5% versus March 31 ^st, 2024. Over the year, Peso denominated borrowings from banks and others increased by 2.6%, while dollar denominated borrowings from banks and others decreased 13.6% in dollar terms.

2.1.3 Bonds issued

Total bonds issued as of June 30^th, 2024 totaled Ps 24,462.3 billion and decreased 3.8% versus June 30^th, 2023 and increased 7.2% versus March 31 ^th, 2024. Over the year, Peso denominated bonds decreased by 14.2%, while dollar denominated bonds increased by 3.9% in dollar terms.

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	Report of 2Q2024 consolidated results
	Information reported in Ps billions and under IFRS

3. Non-controlling Interest

Non-controlling Interest in Grupo Aval reflects the minority stakes that third party shareholders hold in each of its most relevant consolidated subsidiaries (Banco de Bogotá, Banco de Occidente, Banco Popular, Banco AV Villas, Corficolombiana and Porvenir).

As of June 30^th, 2024 non-controlling interest was Ps 14,959.4 billion which increased by 4.6% versus June 30^th, 2023 and by 2.3% versus March 31 ^st, 2024. Total non-controlling interest represents 47.2% of total equity as of 2Q24, compared to 47.1% in 1Q24 and 46.5% in 2Q23.

Total non-controlling interest derives from the sum of the combined minority interests of our banks and of Grupo Aval, applying eliminations associated with the consolidation process of Grupo Aval.

4. Attributable Shareholders’ Equity

Attributable shareholders’ equity as of June 30^th, 2024 was Ps 16,719.8 billion, showing an increase of 1.5% versus June 30^th, 2023 and 1.6% versus March 31^st, 2024.

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	Report of 2Q2024 consolidated results
	Information reported in Ps billions and under IFRS

Income Statement Analysis

Our net income attributable to the owners of the parent company for 2Q24 was Ps 204.3 billion showing a 22.9% increase versus 2Q23 and 79.6% versus 1Q24.

1. Net Interest Income

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	Report of 2Q2024 consolidated results
	Information reported in Ps billions and under IFRS

Our net interest income increased by 21.9% to Ps 1,921.3 billion for 2Q24 versus 2Q23 and by 14.3% versus 1Q24. The increase versus 2Q23 was derived mainly from a 4.7% decrease in total interest expense and a 1.2% increase in total interest income.

2. Impairment loss on financial assets, net

Our impairment loss on financial assets, net decreased by 0.2% to Ps 986.2 billion for 2Q24 versus 2Q23 and by 27.5% versus 1Q24.

Our annualized gross cost of risk was 2.4% for 2Q24, 3.2% for 1Q24, and 2.5% 2Q23. Net of recoveries of charged-off assets our ratio was 2.1% for 2Q24, 2.9% for 1Q24, and 2.2% for 2Q23.

(*) Grupo Aval’s NIM without income from trading securities and investment in debt securities designated at fair value through profit and loss (non compliant with SPPI test) was 3.4% for 2Q24, 3.0% for 1Q24 and 2.9% for 2Q23.

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	Report of 2Q2024 consolidated results
	Information reported in Ps billions and under IFRS

3. Total non-interest income

⁽¹⁾ Includes commissions on banking services, office network services, credit and debit card fees, fees on drafts, checks and checkbooks and other fees

⁽²⁾ Includes share of profit of equity accounted investees, net of tax, and dividend income.

3.1 Net income from commissions and fees

Net income from commissions and fees for 2Q24 totaled Ps 900.6 billion and increased by 1.9% versus 2Q23 and 0.9% versus 1Q24. Income from commissions and fees increased by 4.0% to Ps 1,152.9 billion in 2Q24 versus 2Q23 and 2.3% versus 1Q24.

3.2 Gross profit from sales of goods and services

Gross profit from sales of goods and services (non-financial sector) increased by 0.4% to Ps 621.8 billion for 2Q24 versus 2Q23 and decreased by 24.5% quarterly.

The infrastructure sector experienced a 35.0% contraction compared to the first quarter of 2024, explained by lower construction progress and lower inflation metrics that impact the financial assets of the concessions.

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	Report of 2Q2024 consolidated results
	Information reported in Ps billions and under IFRS

3.3 Total other income from operations

⁽¹⁾ Includes income from trading and hedging derivatives reflected as part of the net trading income on the statement of profit and loss.

⁽²⁾ Includes share of profit of equity accounted investees, net of tax, and dividend income.

Total other income for 2Q24 totaled Ps 275.3 billion, quarterly and yearly performance is driven by derivatives and foreign exchange losses related to our non financial sector.

4. Other expenses

Total other expenses for 2Q24 totaled Ps 2,114.4 billion and increased by 1.2% versus 2Q23 and by 0.9% versus 1Q24. Our efficiency ratio measured as total other expenses to total income was 54.7% in 2Q24, 50.4% in 1Q24 and 53.7% for 2Q23.

General and administrative expenses reached Ps 1,121.7 billion, increasing 3.0% over the quarter. Operating taxes decreased 5.5% and deposit insurances increased 22.9%, respectively compared to 2Q23. Personnel expenses reached Ps. 790.7 billion, increased 2.8% quarterly.

The ratio of annualized total other expenses as a percentage of average total assets was 2.7% for 2Q24 and 2.8% for 1Q24, and 2.8% for 2Q23.

5. Non-controlling Interest

Non-controlling interest in Grupo Aval mainly reflects the minority stakes that third party shareholders hold in each of its direct consolidated subsidiaries (Banco de Bogotá, Banco de Occidente, Banco Popular, Banco AV Villas, Corficolombiana and Porvenir).

Non-controlling interest in the income statement was Ps 244.9 billion, showing a 16.8% decrease versus 2Q23 and 31.9% versus 1Q24. In addition, the ratio of non-controlling interest to income before non-controlling interest was 54.5% in 2Q24, 76.0% in 1Q24 and 63.9% in 2Q23.

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	Report of 2Q2024
	Information reported in Ps billions and under Colombian IFRS

GRUPO AVAL ACCIONES Y VALORES S.A.

Separate Financial Statements

Below, we present a summary of our financial statements at the separate level by the end of the second quarter of 2024. The results presented are in accordance with the Colombian International Financial Reporting Standards (Colombian IFRS). The information reported below is expressed in Colombian Pesos (Ps) billion, except where otherwise indicated.

Assets

The assets are mainly represented by the interests we have in Banco de Bogotá (68.9%), Banco de Occidente (72.3%), Banco Popular (93.7%), Banco AV Villas (79.9%), AFP Porvenir (20.0%), Corficolombiana (8.7%) and 100.0% of Grupo Aval Ltd. (GAL).

Total assets as of June 30^th, 2024 totaled Ps 20,498.0 billion, decreasing 0.7% or Ps 141.1 billion versus June 30^th, 2023 and increasing Ps 196.8 billion versus March 31^st, 2024. The annual variation is mainly explained by the decrease of Ps 208.0 billion in non-current accounts receivable from related parties offset by the increase of Ps 213.2 billion in investments in subsidiaries and associates.

Liabilities

Total liabilities as of June 30 ^th, 2024 totaled Ps 3,328.3 billion, decreasing 9.4% or Ps 345.5 billion versus June 30^th, 2024 and decreasing 1.8% or Ps 60.7 billion versus March 31^st, 2024.

The annual decrease is mainly explained by 38.8% or Ps 338.9 billion decrease in accounts payable due to lower dividends declared by our company to shareholders. On the other hand, the quarterly decrease is mainly due to the 21.2% or Ps 143.5 billion decrease in accounts payable due to seasonality of dividends.

The financial indebtedness of Grupo Aval did not present material changes compared to what was reported as of March 31^st, 2024.

Equity

As of June 30^th, 2024, shareholders' equity was Ps 17,169.7 billion , 1.5% higher than reported on March 31^st, 2024 and more by 1.2% or Ps 204.4 compared to the equity reported as of June 30^th, 2023.

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	Report of 2Q2024
	Information reported in Ps billions and under Colombian IFRS

Net Income

Net income in our separate financial statements is derived primarily from equity method income from our investments and other income, net of the Holding's operating, financial and tax expenses.

During the 2Q24 we presented a net profit from of Ps 192.4 billion, increasing 60.8% versus 1Q24 and 20.5% compared to 2Q23. The increase in profits is explained by a higher income from equity method.

Results for the 2Q24 incorporate a strong year-on-year and quarter-on-quarter evolution of our pension and severance fund management segment and of core metrics in our banking segment (NIM, asset quality and cost of risk). On the other hand, this quarter incorporates a lower contribution to net income from our merchant banking segment, as some concessions transition from the construction phase to operation and as funding costs remain high.

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	Report of 2Q2024
	Information reported in Ps billions and under IFRS

Information related to Grupo Aval Acciones y Valores S.A. (Holding Company) and Grupo Aval Limited

The holding company recorded a total gross indebtedness of Ps 1,653.4 billion (Ps 519.0 billion of bank debt and Ps 1,134.4 billion of bonds denominated in Colombian pesos) as of June 30^th, 2024. It also guarantees irrevocably and unconditionally Grupo Aval Limited’s (144A / Reg S) 2030 (USD 1.0 billion) bonds under its respective indentures. As of June 30^th, 2024 , the total amount outstanding (including interests payable) of such bonds was USD 1.0 billion, or Ps 4,197.2 billion when converted into pesos.

The debt at Grupo Aval Limited is serviced with interest income on loans to subsidiaries and cash & cash equivalents. Grupo Aval Limited has not required, to this date, cash from Grupo Aval Acciones y Valores S.A. to fulfill its obligations. The main sources of cash to pay the debt and debt service at Grupo Aval Acciones y Valores S.A. have been the dividend income from its subsidiaries and the returns on its cash & cash equivalents.

When combined, Grupo Aval Acciones y Valores S.A. and Grupo Aval Ltd. had Ps 633.3 billion of total liquid assets, a total gross indebtedness of Ps 5,850.6 billion and a net indebtedness of Ps 5,217.3 billion as of June 30^th, 2024. In addition to liquid assets, has Ps 1,320.0 billion in loans with related parties and Grupo Aval Ltd. has Ps 2,166.6 billion in investments in AT1 instruments.

As of June 30^th, 2024 our combined double leverage (calculated as investments in subsidiaries at book value, subordinated loans to subsidiaries, AT1 investments, and goodwill as a percentage of shareholders' equity) was 1.23x. Finally, we present an evolution of our key ratios on a combined basis: