Grupo Aval Acciones y Valores S A : Consolidated Financial Statements 2022

Grupo Aval Acciones y Valores S.A. and Subsidiaries

Consolidated Statement of Financial Position

As of December 31, 2022 and 2021 (Amounts expressed in millions of Colombian pesos)

Assets
Cash and cash equivalents
Trading assets
Investment securities
Hedging derivative assets
Loans:
Commercial	110,742,842	125,246,237
Consumer	59,419,444	76,889,145
Mortgages	17,883,355	29,120,316
188,313,361	231,573,437
(11,275,612)
Total loans, net	179,115,847	220,297,825
Other accounts receivable, net	6, 12	23,380,573	19,027,205
Non-current assets held for sale	13	92,830	208,426
Investments in associates and joint ventures	14	1,423,343	1,172,829
Tangible, net	15
Property, plant and equipment for own-use and given in operating lease	4,812,254	6,192,236
Right-of-use assets	1,329,594	1,900,396
Investment properties	880,963	852,935
Biological assets	212,630	154,986
Intangibles
Concession arrangement rights	16	13,242,706	11,098,116
Goodwill	17	2,248,217	8,486,560
17,531,081	21,470,718
Income tax	19
Current	1,782,658	842,408
Deferred	1,851,218	1,765,265
Total assets	366,903,925

Ps.

Notes

2021
6, 7	Ps.	36,642,829
6, 8	11,841,407	10,986,770
6, 9	33,674,477	44,664,373
6, 10	20,854	44,248

2022

17,032,857

4.1, 6, 11

Microcredit 267,720

317,739

Loss allowance 4.1.5 (9,197,514)

(11,275,612)

7,235,441

9,100,553

Other intangible 18 2,040,158

1,886,042

3,633,876

2,607,673

Other 608,650

680,476

The accompanying notes are an integral part of these Consolidated Financial Statements

Ps.

295,591,236

Ps.

Luis Carlos Sarmiento Gutiérrez	María Edith González Flórez	Diana Alexandra Rozo Muñoz
President	Accountant	Auditor
T.P. 13083-T	T.P. 120741-T
Member of KPMG S.A.S.
(See my report of March 6, 2023)

Grupo Aval Acciones y Valores S.A. and Subsidiaries Consolidated Statement of Financial Position, continued

As of December 31, 2022 and 2021 (Amounts expressed in millions of Colombian pesos)

Liabilities and equity Liabilities

Trading liabilities

Hedging derivative liabilitiesCustomer deposits:

Checking accounts Savings accounts Time deposits Other deposits

Notes 2022

December 31,

December 31, 2021

6, 8

Ps.

1,757,606Ps.

6, 10

3,568

1,049,910 55,813

20

25,932,05359,225,849

74,293,894 89,097,128

72,273,69785,530,244

841,505

617,201

173,341,149

234,470,422

Financial obligations

Interbank borrowings and overnight funds Borrowings from banks and others Bonds issued

21

9,087,921 10,672,415

30,309,35827,124,710

28,362,221 32,257,932

Borrowings from development entities 4,357,275

3,227,269

72,116,775 73,282,326

Provisions

Legals

Other provisions

23

229,193247,529

997,978 902,732

1,227,171

1,150,261

Income tax

19

Current

228,817 382,348

Deferred 5,062,670

4,332,366

5,291,487 4,714,714

Employee benefits 22

890,019

1,163,076

10,141,802 11,545,756

Other

24

Total liabilities

264,769,577

327,432,278

Equity

Owners of the parent:

Subscribed and paid-in capital Additional paid-in capital Retained earnings

Other comprehensive income

25

23,744

22,281

9,571,374 8,490,799

8,018,41713,383,391

(1,146,565) 1,117,182

Equity attributable to owners of the parent

16,466,970

23,013,653

26

Non-controlling interests

14,354,689 16,457,994

Total equity

30,821,659

39,471,647

Total liabilities and equity

Ps.

The accompanying notes are an integral part of these Consolidated Financial Statements

295,591,236

Ps. 366,903,925

Luis Carlos Sarmiento Gutiérrez	María Edith González Flórez	Diana Alexandra Rozo Muñoz
President	Accountant	Auditor
T.P. 13083-T	T.P. 120741-T
Member of KPMG S.A.S.
(See my report of March 6, 2023)

Grupo Aval Acciones y Valores S.A. and Subsidiaries

Consolidated Statement of Income

December 31, 2022 and 2021

(Amounts expressed in millions of Colombian pesos)

Total interest income

19,403,032

12,791,409

Time deposits

(4,041,474)

(1,700,128)

Financial obligations

Borrowing from development entities

(249,873)

(90,028)

Net interest income

7,738,637

8,130,579

Net impairment loss on financial assets

(2,493,148)

(2,721,083)

Expenses from commissions and fees

(970,676)

(731,742)

Costs and expenses of sales goods and services

(7,596,231)

(7,351,979)

Net income before tax expense

6,274,371

6,364,618

Net income from continuing operations Ps.

4,002,967

Ps.

4,041,190

Net income for the year Ps.

4,869,133

Ps.

5,668,502

Owners of the parent 25 Ps.

2,482,885

Ps.

3,297,736

Net income for the period from discontinued operations, net of tax 1.1

272,176

508,756

Continuing operations	Notes
Interest income calculated using the effective interest method
Interest income of the loan portfolio	11
Interest income of the investments in debt securities
Interest expense
Deposits
Checking accounts
Savings accounts
Interbank borrowings and overnight funds
Borrowings from banks and others
Bonds issued
Impairment (losses) recoveries on financial assets
Loans and other accounts receivable
Other financial assets
Recovery of charged-off financial assets
Net interest income, after impairment losses
Income from commissions and fees
Net income from commissions and fees	28
Income from sales of goods and services
Gross profit from sales of goods and services	28
Net trading income	29
Net income from other financial instruments mandatorily at fair value through profit or loss
Other income
Other expenses
Income tax expense
Net income from discontinued operations, net of tax
Net income attributable to owners of the parent
Net income for the period from continuing operations
Net income for the period from discontinued operations, net of tax
Net income attributable to non-controlling interests
Net income for the period from continuing operations
Non-controlling interests

2021 (1)
11,882,144
1,843,516	909,265
(159,114)	(62,378)
(3,555,844)	(875,439)
(1,700,128)
(7,756,432)	(2,637,945)
(678,114)	(162,455)
(887,133)	(401,742)
(2,092,843)	(1,368,660)
(90,028)
(3,907,963)	(2,022,885)
(3,120,403)	(3,192,335)
(16,723)	(660)
643,978	471,912
(2,721,083)
5,245,489	5,409,496
3,874,439	3,795,929
(731,742)
2,903,763	3,064,187
12,141,327	10,450,914
(7,351,979)
4,545,096	3,098,935
1,559,626	922,281
16	278,751	270,095
30	(848,571)	389,680
30	(7,409,783)	(6,790,056)
19	(2,271,404)	(2,323,428)
1.1	866,166	1,627,312
1,888,895	2,179,180
1.1	593,990	1,118,556
2,114,072	1,862,010
2,370,766

For the years ended 2022

Ps.

17,559,516Ps.

26

Ps.

2,386,248

Ps.

Net income for the year Ps.

4,869,133

Ps.

5,668,502

Net income per share basic and diluted (in Colombian pesos) see note 25

107.29

148.01

(1) Comparative information has been re-presented due to a discontinued operation disclosed in Note 1.1. The accompanying notes are an integral part of these Consolidated Financial Statements

Luis Carlos Sarmiento Gutiérrez	María Edith González Flórez	Diana Alexandra Rozo Muñoz
President	Accountant	Auditor
T.P. 13083-T	T.P. 120741-T
Member of KPMG S.A.S.
(See my report of March 6, 2023)

Grupo Aval Acciones y Valores S.A. and Subsidiaries Consolidated Statement of Other Comprehensive Income

December 31, 2022 and 2021

(Amounts expressed in millions of Colombian pesos)

For the years endedNotes

2022

2021

Net income for the year

Ps. 4,869,133

Ps. 5,668,502

Other comprehensive income

Items that will be reclassified to profit or loss

Net (losses) gain on hedges of net investments in foreign operations:

Hedged items

Hedging derivative instrument Hedging non-derivative instrument

Cash flow hedges

Foreign currency translation differences from unhedged foreign operations Unrealized (losses) gains on securities at FVOCI

Debt financial instruments

Investments in associates and joint ventures

10, 25.5

(6,675,329)2,565,637

4,051,499

(403,983)

2,549,821(1,198,919)

10, 25.5	(2,396)	7,980
25.5	1,356,213	(180,798)

9, 25.5(2,187,495)(1,346,315)

14, 25.5

81,730

(846)

Income tax expense 19, 25.5 (1,926,071)

1,089,263

(2,752,028) 532,019

Items that will not be reclassified to profit or loss

Transfer from owner-occupied property to investment property Unrealized (losses) gains on equity securities at FVOCI Actuarial gains (losses) from defined benefit pension plans Income tax expense

25.5

9.4, 25.5

22, 25.5

4614,718

(439,150)

19, 25.5

95,819(67,977)

(110,397)

61,665 (35,246)

(410,847)

(79,260)

(79,260)

Other comprehensive income, net of taxes 25.5 (3,162,875)

452,759

Total comprehensive income, net of taxes

Ps.
Ps.	219,138Ps.	3,552,905
1,487,120	2,568,356

1,706,258

Ps. 6,121,261

Total comprehensive income for the year attributable to:

Owners of the parent

Non-controlling interests

Ps.

1,706,258

Ps.

6,121,261

The accompanying notes are an integral part of these Consolidated Financial Statements

Luis Carlos Sarmiento Gutiérrez	María Edith González Flórez	Diana Alexandra Rozo Muñoz
President	Accountant	Auditor
T.P. 13083-T	T.P. 120741-T
Member of KPMG S.A.S.
(See my report of March 6, 2023)

Grupo Aval Acciones y Valores S.A. and Subsidiaries

Consolidated Statement of Changes in Equity

For the years ended December 31, 2022 and 2021 (Amounts expressed in millions of Colombian pesos)

Equity
Subscribed	Additional	Appropriated	Other	attributable to	Non-
and paid-in	paid - in	retained	comprehensive	owners of the	controlling
capital	capital	earnings	income (OCI)	parent	interest (NCI)

Balance as of December 31, 2020

Issuance of shares

Declared dividends (1) Equity transactions Preferred shares

Effect of realization of equity instruments Other comprehensive income Withholding Tax over dividends Net income

Balance as of December 31, 2021

Issuance of shares (2)

Declared dividends in shares (1)

Declared dividends in cash (1)

Equity transactions (3)

Spin Off (4)

Effect of realization of equity instruments Other comprehensive income

Withholding Tax over dividends (5) Net income

Balance as of December 31, 2022

• (1) See note 25.2 "Declared Dividends".

  Ps. 22,281Ps. 8,470,870Ps. 11,302,134Ps.

  Ps. 22,281

  1,4631,082,307

  Ps. 23,744

• (2) See note 25 "Equity attributable to owners of the parent".

• (3) See note 25.4. "Equity transactions".

• (4) See note 1.1. "Discontinued operations".

  - -- -- -- -

  Ps. 8,490,799

  - -- -- -- -

• (5) See note 19.8 "Withholdings tax on dividends paid between entities".

-

-(1,203,175)

19,929

• -(14,302)

  - --

• -3,297,736

Ps. 13,383,391

-

-(1,083,770)

• -(119,405)

(1,732)

-(6,638,961)

- --

• -2,482,885

Ps. 9,571,374

Ps.

8,018,417

The accompanying notes are an integral part of these Consolidated Financial Statements

862,013Ps. 20,657,298Ps. 14,782,259Ps. 35,439,557

-

-

-

• -(1,203,175)

  -

  -

  19,929

• -(14,302)

6,738 -(5,740)

- 255,169-

• -3,297,736

6,738 255,169(5,740)

Ps.

1,117,182

Ps. 23,013,653

Ps. 16,457,994

• -1,083,770

  -

  - --

  (1,083,770) (119,405)

  (1,732)

• -(6,638,961)(3,019,613)(9,658,574)

(5,188)

-

(5,188)

-(2,263,747)(2,263,747)

(535)

120

(870,500)(2,073,675)

(19,929)

(310)3,567

• 197,590452,759

(5,569) 2,370,766

5,668,502 Ps. 39,471,647

572,085

(572,008) (1,655,778)

(550,390)(669,795)

(13,359) (15,091)

(2,312)

(899,128)(3,162,875)

-

(535)

• -2,482,885

Ps. (1,146,565)Ps. 16,466,970

(4,828) 2,386,248

Ps. 14,354,689

Luis Carlos Sarmiento Gutiérrez	María Edith González Flórez	Diana Alexandra Rozo Muñoz
President	Accountant	Auditor
T.P. 13083-T	T.P. 120741-T
Member of KPMG S.A.S.
(See my report of March 6, 2023)

Total equity

120

- (14,612) 10,305

(11,309)

1,655,855

(7,500)

(5,363)

4,869,133 Ps. 30,821,659