Grupo Aval reported a net income of COP 494.9 billion for the second quarter of 2025, marking its highest quarterly figure in three years. This represents a robust 37% quarter-over-quarter and 142% year-over-year growth, with H1 2025 net income reaching COP 856 billion, 1.7 times higher than H1 2024.
The company's consolidated Net Interest Margin (NIM) reached 4% in Q2 2025, a level not seen in three years, with NIM on loans at 4.5%. Asset quality also improved significantly, as the cost of risk, net of recoveries, decreased by 31 basis points to 1.7%, its lowest since Q1 2023.
Further improvements in asset quality include 30-day Past Due Loans (PDLs) improving by 37 basis points to 4.81%, and 90-day PDLs reaching their lowest level in three years at 3.51%. Stage 3 loans have fallen for the third consecutive quarter to 6.1%, reflecting prudent lending practices.
Total assets grew 6% year-over-year to COP 336 trillion, with gross loans reaching COP 199.4 trillion, up 3.2% year-over-year. Retail loans, particularly mortgages (up 20% year-over-year) and consumer loans (up 6% year-over-year), were key growth drivers, while total funding increased 6.3% year-over-year, with deposits growing 6.8%.
For 2025, Grupo Aval projects a return on average equity (ROE) in the 10.5% area, supported by anticipated loan growth in the 7% area, with retail loans expected to grow around 9% and commercial loans around 5%. Consolidated NIM is projected to be in the 4% area, with NIM on loans at 4.5%, and the cost of risk, net of recoveries, expected to be in the 1.95% area.
These projections are underpinned by macroeconomic assumptions of 2.7% Colombian economic growth and inflation around 4.9% for 2025, with the Central Bank's policy rate anticipated to end 2025 at 8.5%.
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