This article first appeared on GuruFocus .
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Net Income:336 billion Colombian pesos, a decrease of 2.3% compared to Q1 2025.
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Equity Tax Impact:312 billion Colombian pesos in operating expenses, reducing ROAE by approximately 457 basis points.
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Gross Loans:193.6 trillion Colombian pesos, increasing 6% compared to 2025.
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Deposits:216.8 trillion Colombian pesos, increasing 11.7% over the last 12 months.
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Assets Under Management:206.5 trillion pesos, with a 4.2% growth in the quarter.
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Consumer Portfolio Growth:Expected 3.3 trillion pesos from Itau's personal banking business acquisition.
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Mortgage Lending:3.2 trillion pesos added, positioning Banco de Bogota with a 12.8% market share.
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Personal Deposits Growth:Expected to grow by 4.1 trillion pesos, reaching a 9.3% market share.
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Net Interest Income:2.2 billion pesos in Q1 2026, increasing 14.3% compared to Q4 2025.
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Net Cost of Risk:1.8%, increasing 6 basis points quarter-on-quarter.
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Return on Average Equity (ROAE):7.4%, would have been 12% excluding equity tax impact.
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Return on Average Assets (ROAA):0.9%, would have been 1.2% excluding equity tax impact.
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Loan Portfolio Quality:90-day PDLs at 3.38%, improving 16 basis points from the last quarter.
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Operating Expenses:2,565 billion pesos in Q1 2026, increasing 20.3% year-on-year.
Release Date: May 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Grupo Aval Acciones y Valores SA ( NYSE:AVAL ) completed the sale of 99.57% of Multi Financial Group Inc., strengthening its capital position.
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The company launched a 2026-2031 corporate strategy focusing on relevance, opportunities, and impact, aiming to enhance market relevance and operational efficiency.
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Banco de Bogota's acquisition of Itau's personal banking business is expected to significantly boost consumer portfolio growth and market share in the Colombian housing market.
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Aval's asset management entity, Aval Fiduciaria, successfully integrated with PHP198 trillion in assets under management, showcasing strong market leadership.
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GoPayments, Aval's payment platform, achieved critical regulatory milestones and is poised for significant revenue opportunities with its interoperable payment solutions.
Negative Points
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Grupo Aval Acciones y Valores SA ( NYSE:AVAL ) reported a 2.3% decrease in net income compared to the first quarter of 2025.
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The equity tax imposed a significant financial burden, reducing the quarter's ROAE by approximately 457 basis points.
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Funding cost pressures and the impact of the equity tax were major headwinds for the company.
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The Colombian economy is facing challenges such as decelerating GDP growth, rising inflation, and political uncertainties, impacting business operations.
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The company's net interest margin (NIM) faced compression due to a mismatch in asset and liability repricing, with further central bank actions expected to add pressure.
Q & A Highlights
Q: Can you clarify the guidance on the group's NIM for loans for the year? Is it expected to be at 4.4%, which is the level you finished this quarter? A: Yes, the expected NIM for loans is 4.4%. Throughout the year, you will see volatility due to the repricing mismatch between assets and liabilities. We expect further central bank actions, which might press the third quarter moving forward. Therefore, expect volatility in the repricing process, but the average for the year should be around 4.4%.
Q: Regarding the pension reform, how will it affect your business, and do you think it should remain part of your portfolio in the long run? A: The pension reform balances out in terms of value. It reduces growth long-term but increases returns in the short-term. The contraction in growth will start being relevant after year 10. Port Venir is a strong part of our business, and we are focusing on asset management and fee-generating businesses alongside intermediation.
Q: With the current economic uncertainty, is it wise to maintain the growth rate for consumer loans at 14%? A: The guidance includes the acquisition of Itau's consumer business, which will add to our personal loans and credit card business. Without this acquisition, growth would align more closely with nominal GDP growth. We are comfortable with this growth rate due to the strategic acquisition.
Q: Can you provide more details on the expected OpEx savings and efficiency targets for 2026? A: We are working on multiple fronts, with expected savings running at $30 to $40 million per year by the end of this year. This is an initial phase, and we are also focusing on technology to further enhance efficiency.
Q: What are your market share expectations for the retail segment in 2026, and how do you plan to improve contributions from Banco de Occidente and Banco AV Villas? A: We have been more successful with Banco Popular and Banco de Bogota in gaining retail deposits. We are working with all banks to ensure they contribute to our strategic objectives. We expect continued improvement in market share through strategic initiatives.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
