Grupo Aval Acciones Y Valores S.A. Files 20-F Annual Report

TL;DR

<b>Grupo Aval Acciones Y Valores S.A. has submitted its annual 20-F report for the fiscal year ending December 31, 2023.</b>

AI Summary

Grupo Aval Acciones Y Valores S.A. (AVAL) filed a Foreign Annual Report (20-F) with the SEC on April 17, 2024. Grupo Aval Acciones Y Valores S.A. filed its 20-F annual report for the fiscal year ending December 31, 2023. The filing covers the period up to December 31, 2023. The report was filed on April 17, 2024. The company's central index key is 0001504764. Grupo Aval Acciones Y Valores S.A. is classified under SIC code 6029 (Commercial Banks, NEC).

Why It Matters

For investors and stakeholders tracking Grupo Aval Acciones Y Valores S.A., this filing contains several important signals. This 20-F filing provides a comprehensive overview of Grupo Aval's financial performance, risk factors, and business operations for the fiscal year 2023, crucial for investors assessing the company's standing. The detailed information within the 20-F allows stakeholders to understand the company's financial health, strategic direction, and potential risks, aiding in investment decisions and market analysis.

Risk Assessment

Risk Level: medium — Grupo Aval Acciones Y Valores S.A. shows moderate risk based on this filing. The company operates in the banking sector, which is subject to significant regulatory oversight and market volatility, as indicated by its SIC code and the nature of financial services.

Analyst Insight

Investors should review the detailed financial statements and risk factor disclosures in the 20-F to assess Grupo Aval's performance and outlook.

Key Numbers

• 20231231 — Fiscal Year End (Conformed Period of Report)
• 20240417 — Filing Date (Filed as of Date)
• 0001504764 — Central Index Key (Filer Identification)
• 6029 — SIC Code (Industry Classification)

Key Players & Entities

• Grupo Aval Acciones Y Valores S.A. (company) — Filer
• 0001504764 (company) — Central Index Key
• 6029 (company) — Standard Industrial Classification
• 20231231 (date) — Conformed Period of Report
• 20240417 (date) — Filed as of Date

FAQ

Industry Context

Grupo Aval Acciones Y Valores S.A. operates within the commercial banking sector, a highly regulated industry sensitive to economic conditions and interest rate fluctuations.

Regulatory Implications

As a foreign private issuer, Grupo Aval is subject to SEC regulations for its annual filings, including the 20-F, which requires disclosure of financial information and business operations.

What Investors Should Do

1. Review Grupo Aval's financial statements for the fiscal year 2023.
2. Analyze the risk factors section for potential business and market challenges.
3. Compare key financial metrics with previous years to identify trends.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 20-F filing.
• 2024-04-17: Filing Date — Date the 20-F report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the annual 20-F report for the fiscal year ending December 31, 2023, providing updated information compared to previous filings.

Key Financial Figures

• $1 — ed at the rate of Ps 3,822.05 per U.S . $1.00, which was the representative market
• $1.00 — ive market rate was Ps 3,768.8 per U.S. $1.00. Definitions In this annual report,

Filing Documents

• aval-20231231x20f.htm (20-F) — 36988KB
• aval-20231231xex1d1.htm (EX-1.1) — 1663KB
• aval-20231231xex2d3.htm (EX-2.3) — 137KB
• aval-20231231xex8d1.htm (EX-8.1) — 73KB
• aval-20231231xex11d1.htm (EX-11.1) — 29KB
• aval-20231231xex12d1.htm (EX-12.1) — 11KB
• aval-20231231xex12d2.htm (EX-12.2) — 11KB
• aval-20231231xex13d1.htm (EX-13.1) — 4KB
• aval-20231231xex13d2.htm (EX-13.2) — 4KB
• aval-20231231xex97d1.htm (EX-97.1) — 59KB
• aval-20231231x20f004.jpg (GRAPHIC) — 62KB
• aval-20231231x20f006.jpg (GRAPHIC) — 40KB
• aval-20231231x20f031.jpg (GRAPHIC) — 50KB
• 0001558370-24-005220.txt (&nbsp;) — 148538KB
• aval-20231231.xsd (EX-101.SCH) — 436KB
• aval-20231231_cal.xml (EX-101.CAL) — 269KB
• aval-20231231_def.xml (EX-101.DEF) — 2220KB
• aval-20231231_lab.xml (EX-101.LAB) — 1903KB
• aval-20231231_pre.xml (EX-101.PRE) — 3091KB
• aval-20231231x20f_htm.xml (XML) — 49115KB

Item 18

Item 17 Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No Table of Contents TABLE OF CONTENTS Page PRESENTATION OF FINANCIAL AND OTHER INFORMATION 1 PART I 5

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS 5 A. Directors and senior management 5 B. Advisers 5 C. Auditors 5

OFFER STATISTICS AND EXPECTED TIMETABLE

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE 5 A. Offer statistics 5 B. Method and expected timetable 5

KEY INFORMATION

ITEM 3. KEY INFORMATION 5 A.

Selected financial data

Selected financial data 5 B. Capitalization and indebtedness 9 C. Reasons for the offer and use of proceeds 9 D.

INFORMATION ON THE COMPANY

ITEM 4. INFORMATION ON THE COMPANY 34 A. History and development of the company 34 B. Business overview 35 C. Organizational structure 96 D. Property, plant and equipment 96

UNRESOLVED STAFF COMMENTS

ITEM 4A. UNRESOLVED STAFF COMMENTS 97

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS 97 A. Operating results 97 B. Liquidity and capital resources 126 C. Research and development, patents and licenses, etc. 130 D. Trend information 130 E. Critical Accounting Estimates 132

DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES 133 A. Directors and senior management 133 B. Compensation 136 C. Board practices 137 D. Employees 138 E. Share ownership 139 F. Disclosure of a registrant's action to recover erroneously awarded compensation 139

MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS 139 A. Major shareholders 139 B. Related party transactions 140 C. Interests of experts and counsel 143

FINANCIAL INFORMATION

ITEM 8. FINANCIAL INFORMATION 144 A. Consolidated statements and other financial information 144 B. Significant changes 145

THE OFFER AND LISTING

ITEM 9. THE OFFER AND LISTING 145 A. Offering and listing details 145 B. Plan of distribution 145 C. Markets 145 D. Selling shareholders 146 E.

Dilution

Dilution 146 F. Expenses of the issue 146 i Table of Contents

ADDITIONAL INFORMATION

ITEM 10. ADDITIONAL INFORMATION 146 A. Share capital 146 B. Memorandum and articles of association 146 C. Material contracts 153 D. Exchange controls 154 E. Taxation 154 F. Dividends and paying agents 161 G. 163 H. Documents on display 163 I. Subsidiary information 163

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 164

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES 184 A. Debt securities 184 B. Warrants and rights 184 C. Other securities 184 D. American depositary shares 184 PART II 186

DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES 186 A. Defaults 186 B. Arrears and delinquencies 186

MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS 186 A. Material modifications to instruments 186 B. Material modifications to rights 186 C. Withdrawal or substitution of assets 186 D. Change in trustees or paying agents 186 E.

Use of proceeds

Use of proceeds 186

CONTROLS AND PROCEDURES

ITEM 15. CONTROLS AND PROCEDURES 186 A. Disclosure controls and procedures 186 B. Management's annual report on internal control over financial reporting 186 C. Attestation report of the registered public accounting firm 187 D. Changes in internal control over financial reporting 187

[RESERVED]

ITEM 16. [RESERVED] 187

Audit committee financial expert

ITEM 16A. Audit committee financial expert 187

Code of ethics

ITEM 16B. Code of ethics 187

Principal accountant fees and services

ITEM 16C. Principal accountant fees and services 187

Exemptions from the listing standards for audit committees

ITEM 16D. Exemptions from the listing standards for audit committees 188

Purchases of equity securities by the issuer and affiliated purchasers

ITEM 16E. Purchases of equity securities by the issuer and affiliated purchasers 188

Change in registrant's certifying accountant

ITEM 16F. Change in registrant's certifying accountant 188

Corporate governance

ITEM 16G. Corporate governance 188

Mine safety disclosure

ITEM 16H. Mine safety disclosure 190

Cybersecurity

ITEM 16K. Cybersecurity 190 PART III 191

Financial statements

ITEM 17. Financial statements 191

Financial statements

ITEM 18. Financial statements 191

Exhibits

ITEM 19. Exhibits 191 ii Table of Contents PRESENTATION OF FINANCIAL AND OTHER INFORMATION All references herein to "peso", "pesos", or "Ps" refer to the lawful currency of Colombia. All references to "U.S. dollars", "dollars" or "U.S.$" are to United States dollars. This annual report translates certain Colombian peso amounts into U.S. dollars at specified rates solely for the convenience of the reader. The conversion of amounts expressed in pesos as of a specified date at the then prevailing exchange rate may result in the presentation of U.S. dollar amounts that differ from U.S. dollar amounts that would have been obtained by converting Colombian pesos as of another specified date. Unless otherwise noted in this annual report, all such peso amounts have been translated at the rate of Ps 3,822.05 per U.S . $1.00, which was the representative market rate published on December 31, 2023. The representative market rate is computed and certified by the Superintendency of Finance on a daily basis and represents the weighted average of the buy/sell foreign exchange rates negotiated on the previous day by certain financial institutions authorized to engage in foreign exchange transactions. Such conversion should not be construed as a representation that the peso amounts correspond to, or have been or could be converted into, U.S. dollars at that rate or any other rate. On April 8, 2024 the representative market rate was Ps 3,768.8 per U.S. $1.00. Definitions In this annual report, unless otherwise indicated or the context otherwise requires, the terms: "BAC Credomatic" or "BAC" means BAC Credomatic Inc. and its consolidated subsidiaries; "Banco AV Villas" means Banco Comercial AV Villas S.A. and its consolidated subsidiary; "Banco de Bogot" means Banco de Bogot S.A. and its consolidated subsidiaries; "Banco de Occidente" means Banco de Occidente S.A. and its consolidated subsidiaries; "Banco Popular" means Banco Popular S.A. and its consolidated subsidiar

Financial statements

Financial statements We are a financial holding company and an issuer of securities in Colombia registered with the National Registry of Shares and Issuers ( Registro Nacional de Emisores y Valores ), and in this capacity, we are subject to inspection and surveillance by the Superintendency of Finance and required to comply with corporate governance and periodic reporting requirements to which all financial holdings and issuers are subject. We are not a financial institution in Colombia and we are not supervised or regulated as a financial institution. Since February 6, 2019, we are subject to the inspection and surveillance of the Superintendency of Finance as the financial holding company of the Aval Financial Conglomerate and we are required to comply with capital adequacy and additional regulations applicable to financial conglomerates. See "Item 4. Information on the Company—B. Business overview—Supervision and regulation". All of our Colombian financial subsidiaries, including Banco de Bogot, Banco de Occidente, Banco Popular, Banco AV Villas, Corficolombiana, Porvenir, and their respective financial subsidiaries, are entities under the direct comprehensive supervision of, and subject to inspection and surveillance as financial institutions by, the Superintendency of Finance. Our consolidated financial statements at December 31, 2023 and 2022 and for the years ended December 31, 2023, 2022, and 2021 are included in this annual report and referred to as our audited consolidated financial statements. Our historical results are not necessarily indicative of results to be expected for future periods. We have prepared the audited consolidated financial statements included herein in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"), which we refer to as "IFRS". We and our Colombian subsidiaries prepare consolidated financial statements for publication in Colombia under IFRS a

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Some of the matters discussed in this annual report concerning our operations and financial performance include estimates and forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 "Reform Act" including such statements contained in "Item 3. Key Information—D. Risk factors", "Item 4. Information on the Company—B. Business overview" and "Item 5. Operating and Financial Review and Prospects". Our estimates and forward-looking statements are mainly based on our current expectations and estimates on projections of future events and trends, which affect or may affect our businesses and results of operations. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to us. Our estimates and forward-looking statements may be influenced by the following factors, among others: changes in Colombian, regional and international business and economic, political or other conditions; developments affecting Colombian and international capital and financial markets; Government regulation and tax matters and developments affecting our company and industry; 3 Table of Contents declines in the oil and affiliated services sector in the Colombian and global economies; increases in defaults by our customers; increases in goodwill impairment losses, or other impairments; decreases in deposits, customer loss or revenue loss; increases in allowances for contingent liabilities; our ability to sustain or improve our financial performance; increases in inflation rates, particularly in Colombia; the level of penetration of financial products and credit in Colombia; changes in interest rates which may, among other effects, adversely affect margins and the valuation of our treasury portfolio; decreases in the spread between investment yields and

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS A. Directors and senior management Not applicable. B. Advisers Not applicable. C. Auditors Not applicable.

OFFER STATISTICS AND EXPECTED TIMETABLE

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE A. Offer statistics Not applicable. B. Method and expected timetable Not applicable.

KEY INFORMATION

ITEM 3. KEY INFORMATION A. Selected financial data The following financial data of Grupo Aval at December 31, 2023 and 2022 and for the years ended December 31, 2023, 2022 and 2021 have been derived from our audited consolidated financial statements prepared in accordance with IFRS, included in this report. Our historical results are not necessarily indicative of results to be expected for future periods. This financial data should be read in conjunction with our audited consolidated financial statements and the related notes, "Presentation of financial and other information" and "Item 5. Operating and Financial Review and Prospects" included in this annual report. 5 Table of Contents IFRS 2023 2022 2021 (in Ps billions, except share and per share data) Total interest income 28,919.4 19,403.0 12,791.4 Total interest expense (22,632.4) (11,664.4) (4,660.8) Net interest income 6,287.0 7,738.6 8,130.6 Impairment loss on loans and other accounts receivable (4,751.0) (3,120.4) (3,192.3) Impairment (loss) recovery on other financial assets 12.9 (16.7) (0.7) Recovery of charged-off financial assets 555.8 644.0 471.9 Net impairment loss on financial assets (4,182.4) (2,493.1) (2,721.1) Net interest income, after impairment losses 2,104.6 5,245.5 5,409.5 Net income from commissions and f

View Full Filing

View this 20-F filing on SEC EDGAR