Business Context and Reporting Period
Company: Grupo Aval Acciones y Valores S.A. (NYSE: AVAL)
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Fourth Quarter and Full Year ended December 31, 2025
Filing Date: February 27, 2026
Business Overview: Leading financial conglomerate in Colombia operating four commercial banks (Banco de Bogotá, Banco de Occidente, Banco Popular, Banco AV Villas), the largest private pension fund manager (Porvenir), and the largest merchant bank (Corficolombiana). Operations also include Multibank in Panama.
Key Financial Metrics
All figures in Colombian Pesos (Ps) billions unless otherwise noted. Consolidated results presented on a pro-forma basis excluding Multi Financial Group (MFG) for comparability.
| Metric | 4Q25 (Pro Forma) | 4Q24 (Pro Forma) | Change (YoY) | Full Year 2025 | Full Year 2024 |
|---|---|---|---|---|---|
| Net Income (Attributable to Parent) | 344.4 | 281.4 | +22.4% | 1,721.9 | 1,015.1 |
| Net Interest Income | 2,083.2 | 1,905.5 | +9.3% | 7,630.7 | 6,927.4 |
| Net Impairment Loss | 813.6 | 851.5 | -4.4% | 3,538.9 | 4,046.3 |
| Cost of Risk (Net) | 1.7% | 1.9% | -20 bps | 1.9% | 2.3% |
| Net Interest Margin (NIM) | 2.86% | 2.93% | -7 bps | 3.8% | 3.5% |
| Efficiency Ratio | 54.9% | 60.4% | -550 bps | 52.2% | 53.2% |
| ROAE | 7.5% | 6.5% | +100 bps | 9.6% | 6.0% |
| ROAA | 0.7% | 0.7% | Flat | 1.0% | 0.7% |
| Gross Loans | 190.9 Trillion | 182.6 Trillion | +4.6% | N/A | N/A |
| Customer Deposits | 207.4 Trillion | 186.5 Trillion | +11.2% | N/A | N/A |
| Total Assets | 348,936.7 | 327,859.4 | +6.4% | N/A | N/A |
Material Changes vs. Prior Period
- Profitability Surge: Full-year 2025 attributable net income increased 69.6% to Ps 1,721.9 billion, driven by improved asset quality, lower cost of risk, and higher net interest income.
- Asset Quality Improvement: Non-performing loans (90+ days past due) improved to 3.3% of gross loans (down 77 bps YoY). Cost of risk decreased 38 bps to 1.9% for the full year.
- Loan Growth: Gross loans grew 4.6% YoY to Ps 190.9 trillion. Mortgage loans saw significant growth (+19.6% YoY), while commercial loans grew modestly (+1.9%).
- Deposit Expansion: Customer deposits grew 11.2% YoY to Ps 207.4 trillion, improving the deposit-to-loan ratio to 1.13x.
- Discontinued Operations: The disposal of Multi Financial Group (MFG) resulted in a loss of Ps 188.6 billion in discontinued operations for 4Q25, contrasting with a gain in 3Q25. Pro-forma figures exclude MFG to reflect ongoing operations.
- Trading Volatility: Net trading income dropped significantly in 4Q25 (Ps 86.2 billion) compared to 3Q25 (Ps 520.1 billion) due to market fluctuations, though full-year trading income remained stable.
Guidance, Outlook, and Risks
- Strategic Divestiture: The company is finalizing the disposal of 99.57% of Multi Financial Group (MFG) to BAC International Corporation. Pro-forma financials reflect this as discontinued operations.
- Market Share: Total market share stood at 25.0% as of December 2025, with gains in mortgage loans (+117 bps) offset by declines in commercial and consumer loan shares.
- Forward-Looking Statements: Management notes that actual results may differ due to economic conditions, interest rate changes, and currency fluctuations. The filing disclaims any obligation to update forward-looking statements prior to the next earnings report.
- Regulatory Status: The external audit for the year ended December 31, 2025, is ongoing. Final financial statements filed with Colombian regulators may result in adjustments to the unaudited pro-forma figures presented.
- Debt Structure: The holding company and Grupo Aval Limited combined net indebtedness was Ps 4,683.5 billion as of December 31, 2025. Double leverage ratio was 1.20x.
Investor Verification Checklist
- Pro-Forma Adjustments: Verify the impact of excluding MFG on historical comparability, as the filing relies heavily on pro-forma figures for 4Q24 and 3Q25.
- Audit Finalization: Confirm final audited numbers once the external audit for FY2025 is completed, as current figures are unaudited.
- Discontinued Operations: Review the specific accounting treatment and tax implications of the Ps 188.6 billion loss from discontinued operations in 4Q25.
- Currency Impact: Assess the effect of the 14.8% appreciation of the Colombian Peso against the USD on USD-denominated loan growth and bond valuations.
- Trading Income Volatility: Monitor the sustainability of net trading income, which showed high volatility between quarters (Ps 520.1B in 3Q25 vs. Ps 86.2B in 4Q25).