Grupo Aval Acciones y Valores S A : Consolidated Financial Statements 1Q23

Grupo Aval Acciones y Valores S.A. and Subsidiaries Condensed Consolidated Statement of Financial Position (Amounts expressed in millions of Colombian pesos)

	Notes				March 31, 2023			December 31, 2022
Assets
Cash and cash equivalents		Ps.		19,327,847	Ps.		17,032,857
Trading assets				13,585,464			11,841,407
Investment securities					31,969,074			33,674,477
Hedging derivative assets	4			35,108			20,854
Loans, net	4				179,102,900			179,115,847
Other accounts receivable, net	4			24,384,493			23,380,573
Non-current assets held for sale					100,133			92,830
Investments in associates and joint ventures	6			1,191,374			1,423,343
Tangible assets	7				7,247,770			7,235,441
Concessions arrangements rights	8			13,536,212			13,242,706
Goodwill	9				2,232,238			2,248,217
Other Intangibles				2,082,686			2,040,158
Income tax assets					3,475,495			3,633,876
Other assets				607,366			608,650
Total assets		Ps.		298,878,160	Ps.		295,591,236
Liabilities and equity
Liabilities
Trading liabilities	4	Ps.	1,517,550	Ps.	1,757,606
Hedging derivative liabilities	4				5,557			3,568
Customer deposits	4			178,352,401			173,341,149
Financial obligations	4				70,038,493			72,116,775
Provisions	11			1,142,008			1,227,171
Income tax liabilities					5,564,170			5,291,487
Employee benefits	12			886,891			890,019
Other liabilities	13				11,144,041			10,141,802
Total liabilities		Ps.	268,651,111	Ps.	264,769,577
Equity
Owners of the parent:
Subscribed and paid-in capital		Ps.	23,744	Ps.	23,744
Additional paid-in capital					9,571,374			9,571,374
Retained earnings				7,428,429			8,018,417
Other comprehensive income					(847,847)			(1,146,565)
Equity attributable to owners of the parent				16,175,700			16,466,970
Non-controlling interest					14,051,349			14,354,689
Total equity				30,227,049			30,821,659
Total liabilities and equity		Ps.		298,878,160	Ps.		295,591,236

The accompanying notes are an integral part of the consolidated financial statements.

Grupo Aval Acciones y Valores S.A. and Subsidiaries

Condensed Consolidated Statement of Income

(Amounts expressed in millions of Colombian pesos)

					For the three-months periods
					ended March 31,
		Notes			2023	2021		2022 (1)
				(1)
Continuing operations
Interest income	4	Ps.		7,008,324	Ps.		3,759,791
Interest expense	4			(5,459,500)			(1,679,180)
Net interest income				1,548,824			2,080,611
Net impairment loss on financial assets				(786,489)			(695,422)
Net interest income, after impairment losses				762,335			1,385,189
Income from commissions and fees				1,084,530			995,075
Expenses from commissions and fees				(242,227)			(285,037)
Net income from commissions and fees	16			842,303			710,038
Income from sales of goods and services				2,927,482			2,667,889
Costs and expenses of sales goods and services				(1,763,843)			(1,647,296)
Net income from sales of goods and services	16			1,163,639			1,020,593
Net trading loss	17			(81,280)			(287,345)
Net income from other financial instruments mandatorily at fair value through profit or loss				93,949			73,908
Other income	18			875,870			793,284
Other expenses	18			(2,077,011)			(1,679,474)
Net income before tax expense				1,579,805			2,016,193
Income tax expense	10			(532,551)			(632,950)
Net income from continuing operations		Ps.		1,047,254	Ps.		1,383,243
Discontinued operations
Net income from discontinued operations	1.1.	Ps.	-	Ps.	1,597,512
Net income		Ps.	1,047,254	Ps.	2,980,755
Net income attributable to owners of the parent
Net income for the period from continuing operations				425,090			631,631
Net income for the period from discontinued operations	1.1			-			1,098,073
Owners of the parent		Ps.		425,090	Ps.		1,729,704
Net income attributable to non-controlling interests
Net income for the period from continuing operations				622,164			751,612
Net income for the period from discontinued operations	1.1			-			499,439
Non-controlling interests		Ps.	622,164	Ps.	1,251,051
Net Income		Ps.	1,047,254	Ps.	2,980,755
Net income per share basic and diluted (in Colombian pesos)	14	Ps.	17.90	Ps.	77.63
(1)	See note 1.1 "Discontinued operations of BAC Holding".

The accompanying notes are an integral part of the consolidated financial statements.

Grupo Aval Acciones y Valores S.A. and Subsidiaries

Condensed Consolidated Statement of Other Comprehensive Income

(Amounts expressed in millions of Colombian pesos)

				For the three-months periods
				ended March 31,
	Notes	2023			2022
Net income		Ps.	1,047,254	Ps.	2,980,755
Other comprehensive income
Items that may be reclassified to profit or loss
Net gain (loss) on hedges of net investments in foreign operations
Foreign currency translation differences from hedged foreign operations	5			(123,149)			(7,505,723)
Hedging derivative instrument	5			0			4,052,710
Hedging non-derivative instrument	5			120,238			3,157,086
Cash flow hedges				(3,114)			(5,702)
Foreign currency translation differences from unhedged foreign operations				(65,076)			1,032,865
Investments in associates and joint ventures				594			(3,531)
Unrealized (losses) gains on securities at FVOCI				735,161			(1,132,971)
Income tax				(244,939)			(2,377,055)
Total, items that may be reclassified to profit or loss		Ps.		419,715	Ps.	(2,782,321)
Items that will not be reclassified to profit or loss
(Losses) unrealized on equity securities at FVOCI				(53,709)			(22,063)
Actuarial (losses) gains from defined benefit pension plans				(1)			33,627
Income tax				(22)			(10,958)
Total, items that will not be reclassified to profit or loss		Ps.		(53,732)	Ps.	606
Total other comprehensive income, net of taxes				365,983			(2,781,715)
Total comprehensive income		Ps.	1,413,237	Ps.	199,040
Total comprehensive income for the periods attributable to:
Owners of the Group				723,808			(140,083)
Non-controlling interest				689,429			339,123
		Ps.		1,413,237	Ps.	199,040

The accompanying notes are an integral part of the consolidated financial statements.

Grupo Aval Acciones y Valores S.A. and Subsidiaries

Consolidated Statement of Changes in Equity for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in millions of Colombian pesos)

				Subscribed			Additional			Appropriated			Other			Equity attributable to			Non-			Total
				and paid-in			paid - in			retained			comprehensive					controlling
												owners of the parent					equity
				capital			capital			earnings			income (OCI)					interest (NCI)
Balance at December 31, 2020	Ps.	22,281		Ps.		8,490,799	Ps.	13,383,391	Ps.	1,117,182		Ps.	23,013,653	Ps.	16,457,994		Ps.	39,471,647
Issuance of shares
			-			-			-			-			-			141				141
Dividends declared in cash				-				-			-			-				-			(405,501)				(405,501)
Spin Off(1)				-			-			(6,638,961)			-			(6,638,961)			(3,019,613)		(9,658,574)
Effect of realization of equity instruments(1)				-				-			(5,318)			-				(5,318)			(2,428)				(7,746)
Other comprehensive income				-			-			-			(1,869,787)				(1,869,787)			(911,928)		(2,781,715)
Withholding Tax over dividends				-				-			1,006			-				1,006			566				1,572
Net income				-			-			1,729,704			-			1,729,704			1,251,051		2,980,755
Balance at March 31, 2022	Ps.	22,281		Ps.		8,490,799	Ps.	8,469,822	Ps.	(752,605)		Ps.	16,230,297	Ps.	13,370,282		Ps.	29,600,579
				Subscribed			Additional			Appropriated			Other			Equity attributable to			Non-			Total
				and paid-in			paid - in			retained			comprehensive					controlling
												owners of the parent					equity
				capital			capital			earnings			income (OCI)					interest (NCI)
Balance at December 31, 2022	Ps.	23,744		Ps.	9,571,374	Ps.	8,018,417	Ps.	(1,146,565) Ps.	16,466,970	Ps.	14,354,689		Ps. 30,821,659
Dividends declared in cash				-				-			(1,025,718)			-				(1,025,718)			(1,014,794)				(2,040,512)
Other comprehensive income				-			-			-			298,718				298,718			67,265		365,983
Withholding Tax over dividends				-				-			10,640			-				10,640			22,025				32,665
Net income				-			-			425,090			-			425,090			622,164		1,047,254
Balance at March 31, 2023	Ps.	23,744		Ps.		9,571,374	Ps.	7,428,429	Ps.	(847,847)		Ps.	16,175,700	Ps.	14,051,349		Ps.	30,227,049

1. See note 1.1 "Discontinued operations of BAC Holding".

The accompanying notes are an integral part of the consolidated financial statements.

Grupo Aval Acciones y Valores S.A. and Subsidiaries

Condensed Consolidated Statement of Cash Flows for the nine-month periods ended March 31, 2023and 2021

(Amounts expressed in millions of Colombian pesos)

…	Notes	.			March 31, 2023	..		March 31, 2022 (1)
Cash flows from operating activities:
Net income before income tax		Ps.		1,579,805	Ps.		2,016,193
Reconciliation of net income before taxes and net cash provided by operating activities:
Depreciation and amortization	16-18				279,584			263,210
Impairment losses of loans and receivables, net	4-16			935,469			813,270
Net income in concession agreements					(1,260,858)			(1,061,120)
Net interest income				(1,548,824)			(2,080,611)
Sales of non-current assets held for sale, net	18				(865)			(3,572)
Gain on sales of tangible assets				(5,025)			(9,015)
Foreign exchange losses	18				(488,545)			(369,186)
Share of profit of equity accounted investees, net of tax	18			(94,738)			(96,409)
Dividends caused	18				(119,767)			(106,882)
Fair value adjustments on:
Derivatives	17			672,258			269,072
Non-current assets held for sale					(142)			40
Investment property				(47)			(801)
Biological assets					(3,156)			(1,624)
Changes in operating assets and liabilities:
Derivatives				(804,470)			(121,005)
Trading assets					(1,883,400)			1,122,997
Accounts receivable				(219,249)			10,221
Other assets					(25,610)			(8,239)
Other liabilities and provisions				(654,362)			(1,498,646)
Employee benefit					(2,237)			9,721
Loan portfolio				(1,598,740)			(9,035,473)
Customer deposits					5,553,614			6,443,976
Interbank borrowings and overnight funds				(270,635)			841,853
Borrowings from development entities					83,547			(981)
Borrowings from banks				(216,821)			588,455
Interest received				6,139,939			3,355,371
Interest paid					(4,755,112)			(1,571,307)
Lease interest				(45,541)			(37,243)
Income tax payments					(523,796)			(377,595)
Net cash provided (used) by operating activities		Ps.	722,276	Ps.	(645,330)
Cash flows from investing activities:
Purchases of amortized cost financial assets		Ps.		(967,134)Ps.			(814,206)
Redemptions of amortized cost financial assets				1,058,158			719,073
Purchases of FVOCI					(5,144,385)			(3,723,789)
Proceeds from sales of FVOCI				7,578,151			3,930,005
Acquisition of associates investment and join ventures					-			(2,667)
Purchases tangible assets				(89,791)			(57,761)
Proceeds from sales of property, plant and equipment					45,349			38,807
Proceeds from sales of non-current assets held for sale				5,194			17,522
Additions of concession arrangement rights					130,757			113,586
Additions of other intangible assets				(115,887)			(86,008)
Dividends received					111,611			96,650
(Decrease) to deconsolidation of subsidiaries					-			(17,570,390)
Net cash provided (used) in by investing activities		Ps.		2,612,023	Ps.		(17,339,178)
Cash flows from financing activities:
Dividends paid to shareholders		Ps.		(1,475)Ps.	(299,942)
Dividends paid to non-controlling interest					(67,965)			(158,848)
Issuance of debt securities				2,571,859			521,716
Payment of outstanding debt securities					(3,057,617)			(345,083)
Leases				(100,444)			(91,878)
Issuance of shares					-			141
Net cash used by financing activities		Ps.		(655,642)Ps.	(373,894)
Effect of foreign currency changes on cash and equivalents					(383,667)			(483,748)
Decrease in cash and cash equivalents in joint operations					-			(1,393,602)
Increase (decrease) in cash and cash equivalents					2,294,990			(20,235,752)
Cash and cash equivalents at beginning of period		Ps.
	17,032,857	Ps.	36,642,829
Cash and cash equivalents at end of period		Ps.		19,327,847	Ps.		16,407,077

1. See note 1.1 "Discontinued operations of BAC Holding".

The accompanying notes are an integral part of the consolidated financial statements.