Grupo Aval Acciones y Valores S A : Consolidated Financial Statements 1Q24

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(FREE TRANSLATION OF THE REPORT ISSUED IN SPANISH) STATUTORY AUDITOR'S REPORT ON THE REVIEW OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION

Dear Shareholders

Grupo Aval Acciones y Valores S.A.:

Introduction

I have reviewed the attached condensed consolidated interim financial information, as of March 31, 2024, of Grupo Aval Acciones y Valores S.A. and subsidiaries (the Group), which includes:

• the condensed consolidated statement of financial position as of March 31, 2024;
• the condensed consolidated statement of income for the three-month period ended on March 31, 2024.
• the condensed consolidated statement of other comprehensive income for the three- month period ended on March 31, 2024;
• the condensed consolidated statement of changes in equity for the three-month period ended on March 31, 2024;
• the condensed consolidated statement of cash flows for the three-month period ended on March 31, 2024; and
• the notes to the condensed interim financial information.

Management is responsible for the preparation and presentation of this condensed consolidated interim financial information in accordance with International Accounting Standard 34 (IAS 34) - Intermediate Financial Information contained in the Accounting and Financial Reporting Standards accepted in Colombia. My responsibility is to express a conclusion on this condensed consolidated financial information based on my review.

Scope of the review

I have carried out my review in accordance with the International Standard for Review Engagements 2410 "Review of Interim Financial Information carried out by the Independent Auditor of the Entity", included in the Information Assurance Standards accepted in Colombia. A review of condensed consolidated interim financial information consists of making inquiries, primarily with those responsible for financial and accounting matters, and the application of analytical and other review procedures. The scope of a review is substantially smaller than that of

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limited by guarantee. All rights reserved.	Tax ID.: 860.000.846-4

2

an audit carried out in accordance with International Auditing Standards accepted in Colombia and, consequently, it does not allow me to obtain assurance that I have known all the significant matters that could have been identified in an audit. Therefore, I do not express an audit opinion.

Conclusion

Based on my review, nothing has come to my attention that would cause me to assume that the attached condensed interim consolidated financial information of the Group as of March 31, 2024, has not been prepared, in all material respects, in accordance with the International Accounting Standard 34 (IAS 34) - Intermediate Financial Information contained in the Accounting and Financial Reporting Standards accepted in Colombia.

(Original signed in Spanish) Diana Alexandra Rozo Muñoz

Statutory Auditor of Grupo Aval Acciones y Valores S.A.

Registration 120741-T

Member of KPMG S.A.S.

May 14, 2024

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, 2024		December 31, 2023
Assets
Cash and cash equivalents	4 (a)	Ps.	18,568,325	Ps.	18,597,861
Trading assets	4 (a)		15,384,458		15,451,121
Investment securities	4 (a)		36,560,046		34,425,693
Hedging derivative assets	4 (a)		58,930		48,662
Loans, net	4 (a)		178,470,956		176,168,055
Other accounts receivable, net	4 (g)		26,442,421		25,617,225
Non-current assets held for sale			103,100		101,184
Investments in associates and joint ventures	6		1,123,911		1,290,683
Tangible assets	7		7,094,403		6,995,890
Concessions contracts	8		13,568,427		13,557,267
Goodwill	9		2,202,959		2,202,222
Other Intangibles			2,450,926		2,382,427
Income tax assets			4,397,442		3,877,749
Other assets			465,691		465,557
Total assets		Ps.	306,891,995	Ps.	301,181,596
Liabilities and equity
Liabilities
Trading liabilities	4 (a)	Ps.	1,193,147	Ps.	2,154,361
Hedging derivative liabilities	4 (a)		159,989		217,566
Customer deposits	4 (a)		189,212,188		181,987,396
Financial obligations	4 (a)		66,085,660		65,541,339
Provisions	11		1,045,032		1,083,283
Income tax liabilities			5,954,272		5,814,987
Employee benefits	12		926,833		907,808
Other liabilities	13		11,238,837		11,954,440
Total liabilities		Ps.	275,815,958	Ps.	269,661,180
Equity
Owners of the parent:
Subscribed and paid-in capital		Ps.	23,744	Ps.	23,744
Additional paid-in capital			9,562,530		9,571,374
Retained earnings			7,278,734		7,731,773
Other comprehensive income			(412,842)		(544,219)
Equity attributable to owners of the parent			16,452,166		16,782,672
Non-controlling interest			14,623,871		14,737,744
Total equity			31,076,037		31,520,416
Total liabilities and equity		Ps.	306,891,995	Ps.	301,181,596

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

Grupo Aval Acciones y Valores S.A. and Subsidiaries

Condensed Consolidated Statement of Income

(Amounts expressed in millions of Colombian pesos)

	Notes
Interest income	4 (i)	Ps.
Interest expense	4 (j)
Net interest income
Net impairment loss on financial assets
Net interest income, after impairment losses
Income from commissions and fees
Expenses from commissions and fees
Net income from commissions and fees	16

For the three-months

periods ended March 31,

2021

2024 2023

(1)

7,236,192 Ps. 7,008,324

(5,555,836) (5,459,500)

1,680,356 1,548,824

(1,360,060) (786,489)

320,296 762,335

1,126,857 1,084,530

(234,578)	(242,227)
892,279	842,303

Income from sales of goods and services			2,592,487	2,927,482
Costs and expenses of sales goods and services			(1,769,076)		(1,763,843)
Net income from sales of goods and services	16		823,411	1,163,639
Net trading income	17		243,631	(81,280)
Net income from other financial instruments mandatorily at fair value through profit or loss			104,484		93,949
Other income	18		409,427	875,870
Other expenses	18		(2,094,627)		(2,077,011)
Net income before tax expense			698,901		1,579,805
Income tax expense	10		(225,659)	(532,551)
Net income from continuing operations		Ps.	473,242	Ps.	1,047,254

Net income attributable to owners of the parent

Net income attributable to non-controlling interests

Net Income

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

		113,743		425,090
		359,499		622,164
	Ps.	473,242	Ps.	1,047,254
14	Ps.	4.79	Ps.	17.90

The accompanying notes are an integral part of the condensed 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 ended
			March 31,
	Notes	2024			2023
Net income		Ps.	473,242	Ps.		1,047,254
Other comprehensive income
Items that will be reclassified to profit or loss
Net hedges of investments in foreing operations
Foreign currency translation differences from hedged item foreign operations	5		18,643			(123,149)
Hedging non-derivative instrument	5		(14,301)			120,238
Cash flow hedges	5		4,613			(3,114)
Foreign currency translation differences from unhedged item foreign operations			774			(65,076)
Equity-accounted investees - share of OCI	6		3,665			594
Unrealized gains on securities at FVOCI			31,350			735,161
Income tax			(11,554)			(244,939)
Total, items that may be reclassified to profit or loss		Ps.	33,190	Ps.		419,715
Items that will not be reclassified to profit or loss
Equity investments at FVOCI - net change in fair value			252,163			(53,709)
Actuarial loss from defined benefit pension plans			(791)			(1)
Income tax			4,911			(22)
Total, items that will not be reclassified to profit or loss		Ps.	256,283	Ps.		(53,732)
Total other comprehensive income, net of taxes			289,473			365,983
Total comprehensive income		Ps.	762,715	Ps.	1,413,237
Total comprehensive income for the periods attributable to:
Owners of the parent			245,120			723,808
Non-controlling interest			517,595			689,429
		Ps.	762,715	Ps.		1,413,237

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

Grupo Aval Acciones y Valores S.A. and Subsidiaries

Condensed Consolidated Statement of Changes in Equity for the three-month periods ended March 31, 2024 and 2023

(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, 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
			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, 2023	Ps.	23,744	Ps.	9,571,374	Ps.	7,731,773	Ps.	(544,219)		Ps.	16,782,672	Ps.	14,737,744	Ps.	31,520,416
Dividends declared in cash (1)			-		-		(569,843)		-				(569,843)		(623,370)	(1,193,213)
Equity transactions (1)			-		(8,844)		-		-				(8,844)		(12,979)		(21,823)
Other comprehensive income			-		-		-		131,377				131,377		158,096	289,473
Effect of realization OCI to retained			-		-		692		-				692		323		1,015
Withholding Tax over dividends			-		-		2,369		-				2,369		4,558	6,927
Net income			-		-		113,743		-				113,743		359,499		473,242
Balance at March 31, 2024	Ps.	23,744	Ps.	9,562,530	Ps.	7,278,734	Ps.	(412,842) Ps.	16,452,166	Ps.	14,623,871	Ps. 31,076,037

1. See note 14

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

Grupo Aval Acciones y Valores S.A. and Subsidiaries

Condensed Consolidated Statement of Cash Flows for the three-month periods ended March 31, 2024 and 2023

(Amounts expressed in millions of Colombian pesos)

…	Notes	.	March 31, 2024	..	March 31, 2023
Cash flows from operating activities:
Net income before income tax		Ps.	698,901	Ps.	1,579,805
Reconciliation of net income before taxes and net cash provided by (used in) operating activities:
Depreciation and amortization	16-18		302,117		279,584
Impairment losses of loans and receivables, net	4-16		1,507,496		935,469
Valuations and interest from concession agreements			(817,689)		(1,260,858)
Net interest income			(1,680,356)		(1,548,824)
Gain on the sale of non-current assets held for sale			(3,454)		(865)
Gain on sales of tangible assets			(22,379)		(5,025)
Foreign exchange, net	18		(31,873)		(488,545)
Share of profit of equity accounted investees, net of tax	6-18		(91,142)		(94,738)
Accrued dividends	18		(134,360)		(119,767)
Valuation of derivatives	17		57,810		672,258
Non-current assets held for sale			943		(142)
Valuation investment property	4 (a)		(8,091)		(47)
Valuation biological assets	4 (a)		(1,675)		(3,156)
Changes in operating assets and liabilities
Derivatives			(241,862)		(804,470)
Trading assets			(768,379)		(1,883,400)
Accounts receivable			237,646		(219,249)
Other assets			(51,028)		(25,610)
Other liabilities and provisions			(1,534,557)		(654,362)
Employee benefit			19,018		(2,237)
Loans			(3,277,307)		(1,598,740)
Customer deposits			7,040,940		5,553,614
Interbank borrowings and overnight funds			2,132,264		(270,635)
Borrowings from development entities			(1,701)		83,547
Borrowings from banks			(1,235,144)		(216,821)
Interest received			6,694,944		6,139,939
Interest paid			(5,390,251)		(4,755,112)
Lease interest			(65,601)		(45,541)
Income tax payments			(558,196)		(523,796)
Net cash provided by operating activities		Ps.	2,777,034	Ps.	722,276
Cash flows from investing activities:
Purchases of financial assets at amortized cost		Ps.	(1,154,456)	Ps.	(967,134)
Redemptions of financial assets at amortized cost			1,176,444		1,058,158
Purchases of investments at FVOCI			(7,650,060)		(5,144,385)
Proceeds from sale of investment at FVOCI			6,084,426		7,578,151
Acquisition of associates investment and join ventures	6		(210)		-
Purchases tangible assets			(146,745)		(89,791)
Proceeds from sales of property, plant and equipment			48,190		45,349
Proceeds from sales of non-current assets held for sale			15,100		5,194
Capitalization and payments in concession contracts			(47,720)		130,757
Additions of other intangible assets			(137,544)		(115,887)
Dividends received			42,508		111,611
Net cash (used) provided in by investing activities		Ps.	(1,770,067)	Ps.	2,612,023

Cash flows from financing activities:

Dividends paid to owners of the parent		Ps.	(255,091)	Ps.
Dividends paid to non-controlling interest			(162,217)
Issuance of debt securities			75,866
Payment of outstanding debt securities			(735,061)
Leases			(95,338)
Net cash used by financing activities		Ps.	(1,171,841)	Ps.
Effect of foreign currency changes on cash and equivalents			135,338
(Decrease) increase in cash and cash equivalents			(29,536)
Cash and cash equivalents at beginning of period	4 (a)	Ps.	18,597,861	Ps.
Cash and cash equivalents at end of period	4 (a)	Ps.	18,568,325	Ps.

(1,475)

(67,965)

2,571,859

(3,057,617)

(100,444)

(655,642)

(383,667)

2,294,990

17,032,857

19,327,847

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

Grupo Aval Acciones y Valores S.A. and Subsidiaries Notes to the Condensed Consolidated Financial Statements (Amounts expressed in millions of Colombian pesos)

NOTE 1 - REPORTING ENTITY

Grupo Aval Acciones y Valores S.A. (hereinafter the "The Group" or "Grupo Aval") was established under Colombian law in January 7, 1994, with its main offices and business address registered in Bogotá, D.C., Colombia. The corporate purpose of Grupo Aval is the purchase and sale of securities issued by financial and comercial entities. Grupo Aval is the majority shareholder of Banco de Bogotá S.A., Banco de Occidente S.A., Banco Popular S.A. and Banco Comercial AV Villas S.A., entities whose main purpose is to

perform all transactions, operations and services inherent to the banking business, pursuant to applicable laws and regulations. Furthermore, through its direct and indirect investments in Corporación Financiera Colombiana S.A. ("Corficolombiana") and in Sociedad Administradora de Fondos de Pensiones y Cesantías Porvenir S.A. ("Porvenir"), Grupo Aval engages in investment banking

activities, invests in the non-financial sector, and manages pensions and severance funds in Colombia.

NOTE 2 - BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF

SIGNIFICANT ACCOUNTING POLICIES

The consolidated condensed interim financial information has been prepared in accordance with International Accounting Standard IAS 34 Interim Financial Reporting, contained in the Accounting and Financial Information Standards accepted in Colombia (NCIF) established in Law 1314 of 2009, regulated by the single regulatory decree 2420 of 2015 and the other amending decrees issued by the National Government.

These interim financial statements do not include all the information required for a complete set of IFRS financial statements and should be read in conjunction with the Group's last annual consolidated financial statements as of and for the year ended December

31, 2023. All information is presented in millions of pesos and has been rounded to the nearest unit, except in cases here otherwise indicated. In accordance with IAS 34 Interim Financial Reporting, the accounting policies used for interim periods are the same as those applied in the preparation of the annual financial statements.

Grupo Aval does not present seasonal or cyclical effects on its disclosed revenue, however selected explanatory notes are included to explain events and transactions that are significant to understanding the changes in the Group's financial position and performance

since the last annual financial statements.

NOTE 3 - USE OF JUDGEMENTS AND ESTIMATES

In preparing these interim condensed consolidated financial statements, management has made judgements and estimates that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense.

The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation were the same as those described in the last annual financial statements ended on December 31, 2023.

NOTE 4 - FINANCIAL INSTRUMENTS - FAIR VALUE AND MANAGEMENT RISK

1. Carrying value and fair value
2. 1. Classification of financial assets and liabilities

The following table provides a reconciliation between the items in the Consolidated Statement of Financial Position after impairment and the categories of financial instruments as of March 31, 2024 and December 31, 2023.

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Grupo Aval Acciones y Valores S.A. and Subsidiaries Notes to the Condensed Consolidated Financial Statements (Amounts expressed in millions of Colombian pesos)

March 31, 2024

				Mandatorily						Total
				at		Fair value		Amortized		net carrying
Financial assets		Detail		FVTPL		at OCI		Cost		amount

Cash	Ps.	-	Ps.	-	Ps.
Deposits in the Colombian central bank		-		-
Demand deposits in banks and other financial entities		-		-
Clearing houses		-		-
Liquidity management		-		-
Cash held for specific purposes		-		-
Cash and cash equivalents	Ps.	-	Ps.	-	Ps.

Trading assets

4,080,249 Ps. 4,080,249

5,720,9925,720,992

4,975,8984,975,898

271271

2,487,179

2,487,179

1,303,7361,303,736

18,568,325

Ps.

18,568,325

Trading investment
Securities issued or secured by Colombian Government	Ps.	6,526,621	Ps.	-	Ps.	-	Ps.	6,526,621
Securities issued or secured by other entities of the Colombian Government		223,433		-		-		223,433
Securities issued or secured by foreign Government		68,269		-		-		68,269
Securities issued or secured by other financial entities		917,361		-		-		917,361
Securities issued or secured by entities of the Non-financial sector		7,505		-		-		7,505
Other		26,912		-		-		26,912
Total trading investment	Ps.	7,770,101	Ps.	-	Ps.	-	Ps.	7,770,101
Investments in equity securities
Trading equity securities	Ps.	6,378,309	Ps.	-	Ps.	-	Ps.	6,378,309
Held for trading Derivatives
Currency Forward	Ps.	967,028	Ps.	-	Ps.	-	Ps.	967,028
Bond Forward		17,160		-		-		17,160
Interest Rate Swap		219,381		-		-		219,381
Currency Swap		8,550		-		-		8,550
Currency Options		23,929		-		-		23,929
Interest rate futures		-		-		-		-
Total held for trading derivatives	Ps.	1,236,048	Ps.	-	Ps.	-	Ps.	1,236,048
Total trading assets	Ps.	15,384,458	Ps.	-	Ps.	-	Ps.	15,384,458
Investments
Investments in debt securities at fair value through profit or loss
Other	Ps.	1,899	Ps.	-	Ps.	-	Ps.	1,899
Investments at fair value through OCI
Securities issued or secured by Colombian Government	Ps.	-	Ps.	17,945,070	Ps.	-	Ps.	17,945,070
Securities issued or secured by other entities of the Colombian Government		-		881,833		-		881,833
Securities issued or secured by foreign Government		-		2,811,250		-		2,811,250
Securities issued or secured by central banks		-		155,109		-		155,109
Securities issued or secured by other financial entities		-		2,268,107		-		2,268,107
Securities issued or secured by entities of the non-financial sector		-		220,620		-		220,620
Other		-		696,574		-		696,574

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Grupo Aval Acciones y Valores S.A. and Subsidiaries Notes to the Condensed Consolidated Financial Statements (Amounts expressed in millions of Colombian pesos)

		Mandatorily			Total
		at	Fair value	Amortized	net carrying
Financial assets	Detail	FVTPL	at OCI	Cost	amount

Total investments at fair value through OCI

Ps.

-

Ps.

24,978,563

Ps.

-

Ps.

24,978,563

Investments in equity securities

Investments in equity through OCI		Ps.	-	Ps.	1,370,601	Ps.	-	Ps.	1,370,601
Financial assets at amortized cost, net
Securities issued or secured by Colombian Government		Ps.	-	Ps.	-	Ps.	2,635,794	Ps.	2,635,794
Securities issued or secured by other entities of the Colombian Government			-		-		5,265,259		5,265,259
Securities issued or secured by Foreign Government			-		-		26,345		26,345
Securities issued or secured by other financial entities			-		-		2,083,957		2,083,957
Securities issued or secured by entities of the non-financial sector			-		-		133,878		133,878
Other			-		-		63,750		63,750
Investments in debt securities, net		Ps.	-	Ps.	-	Ps.	10,208,983	Ps.	10,208,983
Total investments		Ps.	1,899	Ps.	26,349,164	Ps.	10,208,983	Ps.	36,560,046
Hedging Derivatives
Currency Forward		Ps.	2,783	Ps.	-	Ps.	-	Ps.	2,783
Interest Rate Swap			56,147		-		-		56,147
Total hedging derivatives		Ps.	58,930	Ps.	-	Ps.	-	Ps.	58,930
Loans
Interbank and overnight funds		Ps.	-	Ps.	-	Ps.	379,093	Ps.	379,093
Commercial			-		-		104,025,794		104,025,794
Consumer			-		-		55,402,651		55,402,651
Mortgage			-		-		18,438,216		18,438,216
Microcredit			-		-		225,202		225,202
Total loan portfolio, net	d)	Ps.	-	Ps.	-	Ps.	178,470,956	Ps.	178,470,956
Other account receivables
Financial assets in concession contracts		Ps.	3,935,400	Ps.	-	Ps.	-	Ps.	3,935,400
Other accounts receivables at amortized cost, net			-		-		22,507,021		22,507,021
Total other account receivables, net	g)	Ps.	3,935,400	Ps.	-	Ps.	22,507,021	Ps.	26,442,421
Total financial assets, net		Ps.	19,380,687	Ps.	26,349,164	Ps.	229,755,285	Ps.	275,485,136

Mandatorily

Total

LIABILITIES

at

Fair value

Amortized

net carrying

Detail

FVTPL

at OCI

Cost

amount

Trading Derivatives

Currency forward	Ps.	872,526	Ps.	-	Ps.
Bond forward		5,737		-
Interest rate futures		4,195		-
Interest rate swap		243,904		-
Currency swap		38,530		-
Currency options		28,255		-
Total trading derivatives	Ps.	1,193,147	Ps.	-	Ps.

Hedging derivatives

-	Ps.	872,526
-		5,737
-		4,195
-		243,904
-		38,530
-		28,255
-	Ps.	1,193,147

8