Grupo Aval obtained profits of $ 1.02 trillion in the first semester of 2020 – Financial Sector – Economy

During the first semester of this year the Grupo Aval, of which the banks of Bogotá, Popular, de Occidente and AV Villas are part, as well as Corficolombiana and AFP Porvenir, made profits of $ 1.02 billion.

The organization reported that during the second quarter the Group’s results were framed by an increase in the cost of risk, as well as by lower income in commissions due to low economic activity and a lower income from the non-financial sector, which was the result of the effects generated certain sectors due to mobility restrictions during quarantine.

(You may be interested in: ‘Grupo Aval earned $ 700.2 billion in the first quarter of 2020’)

However, he stated that “the diversification of our activities and geographies in which we operate reduced the magnitude of the negative effects of the pandemic on the Colombian banking business ”.

Within the balance, the conclusion of the acquisition, in May, of Multi Financial Group, which contributed $ 18.6 trillion in assets and $ 16.7 trillion in liabilities to Grupo Aval’s consolidated balance sheet, which in the last year had a growth of 25.8% of its total assets, of 22.6% of the portfolio gross and 27.8% of its deposits, including the acquisition of MFG.

(Also: Corficolombiana’s Ebitda only fell 1% in the second quarter)

Regarding the total net interest margin for the semester, the conglomerate reported that it was 5.1%, with a decrease of 70 basis points compared to that reported in the first half of 2019 and of 60 compared to the second half of that year . However, and despite the difficulties imposed by the pandemic, Total net interest margin for the second quarter of 2020 was up 50 basis points compared to the first quarter.

Although the gross commission income for the first semester was in line with that obtained in the first half of 2019, in the second quarter there was a sharp decrease in the income from bank commissions compared to the previous quarter, largely due to the quarantine in the countries in which the Group operates, which resulted in a drop in the use of credit cards, ATMs and other products.

According to the organization’s report, during the analyzed period, non-financial sector revenues decreased “mainly due to a drop in revenues from the infrastructure sector, driven by mandatory isolation in Colombia that slowed down the construction of our concessions of 4G. However, the government has already lifted most of the restrictions and construction has started again ”.

Grupo Aval also recalled that it has granted relief to its clients for more than 75.4 trillion (36.0% of the gross portfolio), in Colombia and Central America. At the end of July 31, 41.5 trillion of these reliefs were still active (19.8% of the gross portfolio).




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