Business Context and Reporting Period
This Form 6-K filing by Grupo Aval Acciones y Valores S.A. (Grupo Aval) was submitted on March 7, 2023. The report serves as a notice regarding the proposed distribution of profits for the fiscal year ended December 31, 2022, to be considered at the Ordinary General Shareholders Meeting.
Key Financial Metrics
- Net Income (2022): COP 2,541,179,242,599.03
- Net Income with Tax Benefit (2022): COP 969,208,729,608.58
- Net Income without Tax Benefit (2022): COP 1,571,970,512,990.45
- Total Income Available for Distribution: COP 8,246,600,693,063.56
- Proposed Cash Dividend: COP 3.35 per share per month
- Dividend Period: April 2023 through March 2024 (12 months)
- Shares Outstanding (for dividend calculation): 23,743,475,754
- Total Cash Dividend Payout: COP 954,487,725,310.80
Material Changes and Adjustments
The total income available for distribution includes significant adjustments beyond the 2022 net income:
- Reserve Releases: An occasional reserve release of COP 5,705,421,450,464.53 was added, comprising reserves from 2016 and prior years (COP 1.87 trillion) and 2017 and following years (COP 10.95 trillion).
- Spin-off Adjustment: A deduction of COP 6,644,277,525,941.12 was applied for a spin-off in favor of shareholders, taken from income without benefit from 2016 to 2021.
- IFRS Adjustments: A deduction of COP 431,200,409,601.80 reflects the effect of applying IFRS standards (NIIF 9, 15, and 16) between 2018 and 2019.
- Tax Rate Adjustment: A deduction of COP 36,287,293,680.06 was made for adjustments in deferred tax due to changes in the income tax rate under Decree 2617 of 2022.
Guidance, Outlook, and Management Commentary
The filing outlines a specific dividend payment schedule rather than forward-looking operational guidance. Key details include:
- Payment Schedule: Dividends will be paid within the first ten (10) days of each month from April 2023 to March 2024.
- First Payment Date: The April 2023 dividend will be paid starting April 4, 2023, and concluding by April 13, 2023, following shareholder approval.
- Tax Treatment: Dividends distributed from profits of 2017 and following years are subject to withholding tax at the source. Pursuant to Regulatory Decree 1457/2020, this withholding will be transferred to shareholders as a lower value to pay.
- Remaining Reserves: After the proposed distribution, an occasional reserve of COP 7,292,112,967,752.76 remains at the disposal of the General Meeting.
Investor Verification Checklist
- Verify the exact date of the Ordinary General Shareholders Meeting to confirm the approval of the proposed distribution.
- Confirm the number of subscribed and paid shares (23,743,475,754) as of the meeting date to ensure dividend eligibility.
- Review the specific tax implications for non-resident shareholders regarding the withholding tax on dividends from 2017 onwards.
- Monitor the first dividend payment execution in April 2023 to ensure compliance with the stated schedule (April 4–13).
- Assess the impact of the COP 6.64 trillion spin-off deduction on the company's retained earnings and future capital structure.