Grupo Aval Acciones y Valores S.A. Q3 FY2025 earnings call

Strategic Projects - Banks worked on improving deposit mix towards retail funding, launching accounts with special rates and new products to face competition. - Efforts to deepen consumer segment presence include increasing lending product share and revamping payment value proposition, with an alliance with Visa for FIFA World Cup exclusivity. - Launched Gou Payments, an instant payment system, and made progress on simplifying processes via transversal initiatives. ### Synergies at Aval Valor Compartido - Identified 8 key processes for synergy model, achieving 40% reduction in procurement cycle time and 50% simplification of active contracts. - Launched Aval talent portal to reduce hiring time, implemented NFC technology in ATMs, and optimized physical service point coverage. ### Asset and Wealth Management - Integrated trust funds into Aval Fiduciaria to expand leadership in asset and wealth management, with plans to unify fiduciary operations by January 2026. ### Sustainability - Sustainable portfolio reached COP 35 trillion, participated in Vamos Pa’lante 2025 campaign, made progress on Misión La Guajira, and defined climate strategy with goals to reduce emissions by 51% by 2030.

The quarter saw net income of COP 521 billion, with year-to-date net income at COP 1.4 trillion, 88% higher than the same period in 2024. Net interest income grew 11.6% to COP 2.9 trillion, and the net interest margin improved to 4.3%. Gross loans and deposits grew 2.1% and 0.4% over the quarter, with consumer loans having the strongest quarterly growth in 10 quarters at 1.5%. Peso-denominated deposits from individuals grew 22%, with savings and checking accounts up 11% and term deposits 31%.

2025 - Return on average equity expected in the 10.5% area. - Loan growth expected at 4.5%, with commercial loans growing 2% and retail loans 8.5%. - Consolidated NIM expected in the 4% area, NIM on loans in 4.5%. - Cost of risk net of recoveries expected in the 1.9% area. ### 2026 - Loan growth expected in the 8% area, with commercial loans growing 7% and retail loans 9%. - Return on average equity expected in the 12%-12.5% range. - Cost of risk net of recoveries expected in the 2% area. - Total NIM expected in the 4.3% area.

• Electoral cycle bringing political uncertainties and market volatility. - Fiscal balance concerns and inflationary pressures due to minimum wage increases. - Impact of peso appreciation on dollar-denominated loans.

Q: Request to repeat guidance, ask about trading income sustainability and NIM profile A: Diego Saravia repeated loan growth and ROE guidance, discussed trading income and NIM trends, explaining that performance is affected by derivatives and FX, but positive on NIM evolution Q: Follow-up on asset quality and coverage A: Diego Saravia talked about cost of risk dependent on GDP, labor market, and rate changes, and coverage being a result of provision mechanics under IFRS Q: Regarding OpEx, efficiency ratios, and interest expenses A: Diego Saravia explained repo financing impact on expenses and synergies from Aval Valor Compartido, noting OpEx pressure from inflation and minimum wage increases