CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 3Q 2019
GRUPO AVAL ACCIONES Y VALORES S.A.
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Condensed Consolidated Statement of Financial Position
(Figures in millions of Colombian pesos)
September 30, | December 31, 2018 | ||||
Notes | 2019 (1) | ||||
Assets | |||||
Cash and cash equivalents | Ps. | 27,332,720 | Ps. | 28,401,283 | |
Trading assets | 9,298,381 | 7,204,312 | |||
Investment securities | 24,550,557 | 23,030,159 | |||
Hedging derivatives assets | 4 | 27,792 | 30,138 | ||
Loans, net | 4 | 174,429,722 | 168,685,654 | ||
Other accounts receivable, net | 10,827,409 | 9,300,643 | |||
Non-current assets held for sale | 98,588 | 186,714 | |||
Investments in associates and joint | |||||
ventures | 990,266 | 982,743 | |||
Tangible assets | 6 | 9,010,334 | 6,588,483 | ||
Goodwill | 7 | 7,676,349 | 7,318,594 | ||
Concessions | 8 | 6,985,611 | 5,514,481 | ||
Other Intangibles | 1,118,430 | 1,033,884 | |||
Income tax assets | 1,112,855 | 935,175 | |||
Other assets | 388,325 | 462,890 | |||
Total assets | Ps. | 273,847,339 | Ps. | 259,675,153 | |
Liabilities and equity | |||||
Liabilities | |||||
Trading liabilities | 4 | Ps. | 832,247 | Ps. | 811,305 |
Hedging derivatives liabilities | 4 | 115,310 | 195,539 | ||
Customer deposits | 4 | 174,047,965 | 164,359,451 | ||
Financial obligations | 4 | 53,486,929 | 51,211,990 | ||
Provisions | 11 | 736,403 | 695,288 | ||
Income tax liabilities | 2,918,062 | 2,574,398 | |||
Employee benefits | 10 | 1,356,397 | 1,264,881 | ||
Other liabilities | 12 | 7,991,186 | 9,007,953 | ||
Total liabilities | Ps. | 241,484,499 | Ps. | 230,120,805 | |
Equity | |||||
Owners of the parent: | |||||
Subscribed and paid-in capital | Ps. | 22,281 | Ps. | 22,281 | |
Additional paid-in capital | 8,445,766 | 8,472,336 | |||
Retained earnings | 9,582,993 | 8,598,319 | |||
Other comprehensive income | 1,263,292 | 696,773 | |||
Equity attributable to owners of the | |||||
parent | 19,314,332 | 17,789,709 | |||
Non-controlling interest | 13,048,508 | 11,764,639 | |||
Total equity | 32,362,840 | 29,554,348 | |||
Total liabilities and equity | Ps. | 273,847,339 | Ps. | 259,675,153 | |
The accompanying notes are an integral part of the consolidated financial statements.
- The Group has adopted IFRS 16 from January 1, 2019 (see Note 2.)
Luis Carlos Sarmiento Gutiérrez | María Edith González Flórez | Diana Alexandra Rozo Muñoz |
President | Accountant | Auditor |
Principal executive officer | T.P. 13083-T | T.P. 120741-T |
Member of KPMG S.A.S. | ||
(See my report of November 13, 2019) |
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Condensed Consolidated Statement of Income
(Figures in millions of Colombian pesos)
For the three-months period ended | For the nine-months periods ended | |||||||||
September 30, | September 30 | |||||||||
Notes | 2019 (1) | 2018 | 2019 (1) | 2018 | ||||||
Interest income | Ps. | 4,942,101 | Ps. | 4,687,117 | Ps. | 14,497,059 | Ps. | 13,665,021 | ||
Interest expense | (2,112,794) | (1,847,276) | (6,106,931) | (5,550,183) | ||||||
Net interest income | 2,829,307 | 2,839,841 | 8,390,128 | 8,114,838 | ||||||
Net impairment loss on financial | ||||||||||
assets | (1,088,764) | (1,027,721) | (2,833,024) | (2,514,708) | ||||||
Net interest income, after | ||||||||||
impairment losses | 1,740,543 | 1,812,120 | 5,557,104 | 5,600,130 | ||||||
Income from commissions and fees | 1,519,191 | 1,336,060 | 4,425,026 | 3,993,706 | ||||||
Expenses from commissions and | ||||||||||
fees | (163,999) | (142,296) | (463,640) | (450,692) | ||||||
Net income from commissions | 15 | |||||||||
and fees | 1,355,192 | 1,193,764 | 3,961,386 | 3,543,014 | ||||||
Income from sales of goods and | ||||||||||
services | 2,380,956 | 2,465,157 | 6,382,321 | 5,296,972 | ||||||
Costs and expenses of sales goods | ||||||||||
and services | (1,719,463) | (1,492,853) | (4,546,539) | (3,859,830) | ||||||
Net income from sales goods and | 15 | |||||||||
services | 661,493 | 972,304 | 1,835,782 | 1,437,142 | ||||||
Net trading income | 16 | 481,317 | 109,466 | 798,067 | 263,788 | |||||
Net income from other financial | ||||||||||
instruments mandatory at fair value | ||||||||||
through profit or loss | 55,242 | 50,167 | 162,374 | 177,212 | ||||||
Other income | 17 | 104,778 | 297,550 | 756,760 | 857,871 | |||||
Other expenses | 17 | (2,626,035) | (2,231,387) | (7,321,646) | (6,659,740) | |||||
Net income before tax expense | 1,772,530 | 2,203,984 | 5,749,827 | 5,219,417 | ||||||
Income tax expense | (446,518) | (750,826) | (1,667,492) | (1,675,658) | ||||||
Net income | Ps. | 1,326,012 | Ps. | 1,453,158 | 4,082,335 | Ps. | 3,543,759 | |||
Net income attributable to: | ||||||||||
Owners of the parent | 743,207 | 782,712 | 2,319,268 | 2,061,973 | ||||||
Non-controlling interest | 582,805 | 670,446 | 1,763,067 | 1,481,786 | ||||||
Ps. | 1,326,012 | Ps. | 1,453,158 | 4,082,335 | Ps. | 3,543,759 | ||||
Net income per share basic and | ||||||||||
diluted (in Colombian pesos) | 33.36 | 35.13 | 104.09 | 92.54 | ||||||
The accompanying notes are an integral part of the consolidated financial statements.
- The Group has adopted IFRS 16 from January 1, 2019 (see Note 2.)
Luis Carlos Sarmiento Gutiérrez | María Edith González Flórez | Diana Alexandra Rozo Muñoz |
President | Accountant | Auditor |
Principal executive officer | T.P. 13083-T | T.P. 120741-T |
Member of KPMG S.A.S. | ||
(See my report of November 13, 2019) |
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Condensed Consolidated Statement of Other Comprehensive Income
(Figures in millions of Colombian pesos)
For the three-months period | For the nine-months periods | |||||||||||
ended September 30, | ended September 30 | |||||||||||
Notes | 2019 | 2018 | 2019 | 2018 | ||||||||
Net income | Ps. | 1,326,012 | Ps. | 1,453,158 | Ps. | 4,082,335 | Ps. | 3,543,759 | ||||
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 | 5 | |||||||||||
hedged foreign operations | 1,221,753 | 169,499 | 1,049,040 | (24,088) | ||||||||
Hedging derivative instrument | 5 | (633,985) | (79,935) | (544,646) | (1,746) | |||||||
Hedging non-derivative instrument | 5 | (587,404) | (89,775) | (504,148) | 26,174 | |||||||
Cash flow hedges | (4,153) | 3,157 | 3,292 | 118 | ||||||||
Foreign currency translation differences from | ||||||||||||
unhedged foreign operations | (801) | (120,397) | 111,231 | (178,782) | ||||||||
Investments in associates and joint ventures | 18,724 | 3,402 | 11,926 | (4,223) | ||||||||
Unrealized gains (losses) on securities at FVOCI | 29,596 | 16,435 | 419,251 | (146,578) | ||||||||
Income tax | 350,760 | 53,315 | 233,918 | 17,241 | ||||||||
Total, items that may be reclassified to profit or | ||||||||||||
loss | Ps. | 394,490 | Ps. | (44,299) | Ps. | 779,864 | Ps. | (311,884) | ||||
Items that will not be reclassified to profit or | ||||||||||||
loss | ||||||||||||
Revaluationinvestment properties | - | - | 4,956 | - | ||||||||
Unrealized gains (losses) on equity securities at | ||||||||||||
FVOCI | 36,352 | (16,551) | 222,069 | (29,202) | ||||||||
Actuarial gains (losses) from defined benefit | ||||||||||||
pension plans | 258 | (301) | (30,940) | 17,546 | ||||||||
Income tax | 367 | (2,391) | (3) | (9,844) | ||||||||
Total, items that will not be reclassified to profit | ||||||||||||
or loss | Ps. | 36,977 | Ps. | (19,243) | Ps. | 196,082 | Ps. | (21,500) | ||||
Total other comprehensive income | 431,467 | (63,542) | 975,946 | (333,384) | ||||||||
Total comprehensive income, net of taxes | Ps. | 1,757,479 | Ps. | 1,389,616 | Ps. | 5,058,281 | Ps. | 3,210,375 | ||||
Total comprehensive income for the periods | ||||||||||||
attributable to: | ||||||||||||
Owners of the Group | 990,890 | 701,758 | 2,885,787 | 1,829,814 | ||||||||
Non-controlling interest | 766,589 | 687,858 | 2,172,494 | 1,380,561 | ||||||||
Ps. | 1,757,479 | Ps. | 1,389,616 | Ps. | 5,058,281 | Ps. | 3,210,375 | |||||
The accompanying notes are an integral part of the consolidated financial statements.
Luis Carlos Sarmiento Gutiérrez | María Edith González Flórez | Diana Alexandra Rozo Muñoz |
President | Accountant | Auditor |
Principal executive officer | T.P. 13083-T | T.P. 120741-T |
Member of KPMG S.A.S. | ||
(See my report of November 13, 2019) |
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Consolidated Statement of Changes in Equity for the nine-month periods ended at September 30, 2019 and 2018
(Figures in millions of Colombian pesos)
Subscribed | Equity | Non- | |||||||||||||||||||||||||
and paid- | Additional | Appropriated | Other | attributable to | controlling | Total equity | |||||||||||||||||||||
in | paid - in | retained | comprehensive | owners of the | interest | ||||||||||||||||||||||
capital | capital | earnings | income (OCI) | parent | (NCI) | ||||||||||||||||||||||
Balance at December 31, 2017 | Ps. | 22,281 | Ps. | 8,412,685 | Ps. | 7,573,912 | Ps. | 223,543 | Ps. | 16,232,421 | Ps. | 9,745,829 | Ps. | 25,978,250 | |||||||||||||
Change in accounting policies | - | (109,254) | (776,651) | 609,270 | (276,635) | (185,282) | (461,917) | ||||||||||||||||||||
Balance at January 1, 2018 | 22,281 | 8,303,431 | 6,797,261 | 832,813 | 15,955,786 | 9,560,547 | 25,516,333 | ||||||||||||||||||||
Issuance of shares | - | - | - | - | - | 988,118 | 988,118 | ||||||||||||||||||||
Equity transactions | - | 179,106 | - | (41,447) | 137,659 | (137,659) | - | ||||||||||||||||||||
Dividends declared | - | - | (1,069,490) | - | (1,069,490) | (739,125) | (1,808,615) | ||||||||||||||||||||
Other comprehensive income | - | - | - | (190,712) | (190,712) | (142,672) | (333,384) | ||||||||||||||||||||
Net income | - | - | 2,061,973 | - | 2,061,973 | 1,481,786 | 3,543,759 | ||||||||||||||||||||
Balance at September 30, 2018 | Ps. | 22,281 | Ps. | 8,482,537 | Ps. | 7,789,744 | Ps. | 600,654 | Ps. | 16,895,216 | Ps. | 11,010,995 | Ps. | 27,906,211 | |||||||||||||
Subscribed | Additional | Appropriated | Other | Equity | Non- | ||||||||||||||||||||||
and paid- | attributable to | controlling | |||||||||||||||||||||||||
paid - in | retained | comprehensive | Total equity | ||||||||||||||||||||||||
in | owners of the | interest | |||||||||||||||||||||||||
capital | earnings | income (OCI) | |||||||||||||||||||||||||
capital | parent | (NCI) | |||||||||||||||||||||||||
Balance at December 31, 2018 | Ps. | 22,281 | Ps. | 8,472,336 | Ps. | 8,598,319 | Ps. | 696,773 | Ps. | 17,789,709 | Ps. | 11,764,639 | Ps. | 29,554,348 | |||||||||||||
Change in accounting policies (1) | - | - | (5,101) | - | (5,101) | (21,881) | (26,982) | ||||||||||||||||||||
Balance at January 1, 2019 | 22,281 | 8,472,336 | 8,593,218 | 696,773 | 17,784,608 | 11,742,758 | 29,527,366 | ||||||||||||||||||||
Equity transactions | - | (26,570) | - | - | (26,570) | (40,527) | (67,097) | ||||||||||||||||||||
Dividends declared | - | - | (1,336,861) | - | (1,336,861) | (829,044) | (2,165,905) | ||||||||||||||||||||
Effect of realization of equity instruments | - | - | 7,368 | - | 7,368 | 2,827 | 10,195 | ||||||||||||||||||||
Other comprehensive income | - | - | - | 566,519 | 566,519 | 409,427 | 975,946 | ||||||||||||||||||||
Net income | - | - | 2,319,268 | - | 2,319,268 | 1,763,067 | 4,082,335 | ||||||||||||||||||||
Balance at September 30, 2019 | Ps. | 22,281 | Ps. | 8,445,766 | Ps. | 9,582,993 | Ps. | 1,263,292 | Ps. | 19,314,332 | Ps. | 13,048,508 | Ps. | 32,362,840 |
The accompanying notes are an integral part of the consolidated financial statements.
- The Group has adopted IFRS 16 from January 1, 2019 (see Note 2.)
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Condensed Consolidated Statement of Cash Flows for the nine-month periods ended September 30, 2019 and 2018
(Figures in millions of Colombian pesos)
Notes | September 30, | September 30, | ||
2019 (1) | 2018 | |||
Cash flows from operating activities: | ||||
Net income before income tax | Ps. | 5,749,827 | Ps. | 5,219,417 |
Reconciliation of net income before taxes and net cash provided by operating activities: | ||||
Depreciation and amortization | 15-17 | 975,596 | 694,324 | |
Impairment losses of loans and receivables, net | 4-15 | 3,190,506 | 2,808,693 | |
(Gains) in concession agreements | (2,942,769) | (1,141,028) | ||
Net interest income | (8,390,128) | (8,114,838) | ||
(Gains) on sales of non-current assets held for sale, net | 17 | (14,612) | (11,681) | |
(Gain) losses on sales of property, plant and equipment | (21,285) | (28,464) | ||
Foreign exchange losses | 567,905 | (107,630) | ||
Share of profit of equity accounted investees, net of tax | (174,445) | (142,361) | ||
Other adjustments for reconciliation of net income | (386,216) | (89,497) | ||
Fair value adjustments on: | ||||
Derivative financial instruments | (503,936) | (70,234) | ||
Non-current assets held for sale | 5,453 | 14 | ||
Investment property | (2,390) | (10,935) | ||
Biological assets | (13,542) | (13,907) | ||
Changes in operating assets and liabilities: | ||||
Trading assets | (984,235) | 1,548,070 | ||
Accounts receivable | 98,564 | (60,649) | ||
Non-current assets held for sale | 15,740 | 10,799 | ||
Other assets | (7,598) | (30,505) | ||
Other liabilities, provisions and employee benefits | (2,286,406) | 1,065,394 | ||
Loan portfolio | (3,886,400) | (2,307,950) | ||
Customer deposits | 4,482,448 | (3,532,999) | ||
Interbank borrowings and overnight funds | (1,204,475) | 3,630,589 | ||
Borrowings from development entities | 2,049 | (1,246) | ||
Borrowings from banks | (515,075) | (443,027) | ||
Interest received | 13,786,097 | 13,567,412 | ||
Interest paid | (6,128,970) | (3,271,264) | ||
Lease interest | (151,610) | - | ||
Income tax payments | (1,424,998) | (1,174,293) | ||
Net cash (used) provided by operating activities | Ps. | (164,905) | Ps. | 7,992,204 |
Cash flows from investing activities: | ||||
Purchases of amortized cost financial assets | Ps. | (3,058,597) | Ps. | (2,473,775) |
Redemptions of amortized cost financial assets | 3,025,763 | 2,422,251 | ||
Purchases of FVOCI | (20,277,000) | (14,472,687) | ||
Proceeds from sales of FVOCI | 20,195,459 | 11,173,836 | ||
Purchases tangible assets | (427,828) | (394,427) | ||
Proceeds from sales of property, plant and equipment | 94,275 | 157,353 | ||
Proceeds from sales of non-current assets held for sale | 110,392 | 44,468 | ||
Additions of concession arrangement rights | (452,166) | (1,538,719) | ||
Additions of other intangible assets | (218,957) | (257,504) | ||
Proceeds from sales of concession | 155 | 125 | ||
Dividends received | 246,763 | 158,607 | ||
Effect of loss of control of subsidiaries | - | (3,610) | ||
Net cash (used in) provided by investing activities | Ps. | (761,741) | Ps. | (5,184,082) |
Cash flows from financing activities: | ||||
Dividends paid to shareholders | Ps. | (933,574) | Ps. | (859,528) |
Dividends paid to non-controlling interest | (602,709) | (546,507) | ||
Issuance of debt securities | 1,526,106 | 939,682 | ||
Payment of outstanding debt securities | (1,127,989) | (1,006,980) | ||
Leases | (274,156) | - | ||
Cash capitalization | - | 988,118 | ||
Equity transactions | (67,097) | - | ||
Net cash used in financing activities | Ps. | (1,479,419) | Ps. | (485,215) |
Effect of foreign currency changes on cash and equivalents | 1,337,501 | (262,927) | ||
Increase (decrease) in cash and cash equivalents | (1,068,563) | 2,059,980 | ||
Cash and cash equivalents at beginning of period | Ps. | 28,401,283 | Ps. | 22,336,838 |
Cash and cash equivalents at end of period | Ps. | 27,332,720 | Ps. | 24,396,818 |
The accompanying notes are an integral part of the consolidated financial statements.
- The Group has adopted IFRS 16 from January 1, 2019 (see Note 2)
Luis Carlos Sarmiento Gutiérrez | María Edith González Flórez | Diana Alexandra Rozo Muñoz |
President | Accountant | Auditor |
Principal executive officer | T.P. 13083-T | T.P. 120741-T |
Member of KPMG S.A.S. | ||
(See my report of November 13, 2019) |
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures 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 interim condensed consolidated financial information has been prepared in accordance with International accounting standard IAS 34 Interim Financial Reporting, which is contained in the accounting and financial information standards accepted in Colombia (NCIF) established in law 1314 of 2009, regulated by the sole regulatory Decree 2420 of 2015, modified by Decrees 2496 of 2015, 2131 of 2016, 2170 of 2017 and 2483 of 2018.
These interim condensed consolidated 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, 2018. All information is presented in millions of pesos and has been rounded to the nearest unit.
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 an understanding of the changes in the Group's financial position and performance since the last annual financial statements.
Changes in significant accounting policies
Except for the changes described below, the accounting policies applied in these interim condensed consolidated financial statements are the same as those applied by Grupo Aval in the financial statements for the year ended December 31, 2018.
2 Changes in significant accounting policies
Except for the changes described below, the accounting policies applied in these interim financial statements are the same as those applied by Grupo Aval in the financial statements for the year ended December 31, 2018.
IFRS 16
Changes in accounting policies
Grupo Aval has adopted IFRS 16 using the cumulative effect method, with the effect of initial adoption recognized on January 1, 2019 but has not restated comparatives for the 2018 reporting period, according with the standard. The reclassifications and the adjustments arising from the new leasing rules are therefore recognized in the opening Condensed Consolidated Statement of Financial Position on January 1, 2019.
IFRS 16 introduced a new and only accounting model for lessees, as a result, Grupo Aval, as a lessee, has recognized right-of-use assets representing its rights to use the underlying assets and lease liabilities representing its obligation to make lease payments. Lessor accounting remains equal to previous accounting policies.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:
7
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
- fixed payments (includingin-substance fixed payments), less any lease incentives receivable,
- variable lease payments that are based on an index or a rate,
- amounts expected to be payable by the lessee under residual value guarantees,
- the exercise price of a purchase option if the lessee is reasonably certain it will exercise that option, and
- payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
The lease payments are discounted using the interest rate implicit in the lease, if that rate can be determined, or the group's incremental borrowing rate.
Right-of-use assets are measured at cost comprising the following:
- the amount of the initial measurement of lease liability,
- any lease payments made at or before the commencement date less any lease incentives received,
- any initial direct costs, and
- restoration costs.
Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as a rent expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT-equipment and small items of office furniture.
Extension and termination options are included in a number of property and equipment leases across Grupo Aval. These terms are used to maximize operational flexibility in terms of managing contracts.
Adjustments recognized on adoption of IFRS 16
Upon adoption of IFRS 16, Grupo Aval recognized lease liabilities in relation to leases which had previously been classified as 'operating leases' under the principles of IAS 17 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate as of January 1, 2019.
Some right-of-use assets related with property leases were measured on a retrospective basis as if the new rules had always been applied. Other right-of use assets were measured at the amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognized in the balance sheet as of December 31, 2018. There were no onerous lease contracts that would have required an adjustment to the right-of-use assets at the date of initial application.
1 January 1, 2019 | |||
Right of use assets | Ps. | 2,217,380 | |
Deferred tax liabilities | (636,017) | ||
Total | 1,581,363 | ||
Retained earnings | Ps. | 40,272 | |
Retained earnings // deferred tax for-right-of-use | (13,290) | ||
Total | Ps. | 26,982 | |
Net, effect | Ps. | 1,608,345 | |
January 1, 2019 | |||
Financial liabilities for right-of-use | Ps. | (2,225,545) | |
Provisions for dismantling for right-of-use | (32,107) | ||
Deferred tax assets | 649,307 | ||
Net, effect | Ps. | (1,608,345) | |
In applying IFRS 16 for the first time, the Group has used the following practical expedients permitted by the standard:
- the use of a single discount rate to a portfolio of leases with reasonably similar characteristics.
8
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
- the accounting for operating leases with a remaining lease term of less than 12 months as at 1 January 2019 asshort-term leases,
- the exclusion of initial direct costs for the measurement of theright-of-use asset at the date of initial application, and
- the use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease.
Grupo Aval has also elected not to reassess whether a contract is or contains a lease at the date of initial application. Instead, for contracts entered into before the transition date Group Aval relied on its assessment made applying IAS 17 and IFRIC 4 for determining whether an arrangement contains a lease.
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, 2018, except for the new significant judgements related to lessee accounting under IFRS 16, which are described in Note 2 (A).
Lease terms
In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). The assessment is reviewed if a significant event or a significant change in circumstances occurs which affects this assessment and that is within the control of the lessee.
Measurement of fair values
The output of a model is always an estimate or approximation of a value that cannot be determined with certainty, and the valuation techniques used may not fully reflect all the factors relevant to the positions of Grupo Aval. Therefore the appraisals are adjusted, if necessary, to allow for additional factors, including country risk, liquidity risks and counterparty risks.
The fair value hierarchy has the following levels:
- Level 1 inputs are quoted prices (unadjusted) in active markets for assets or liabilities identical to those which the entity can access as of the date of measurement.
- Level 2 inputs are inputs different than quoted prices included in Level 1 that are observable for the asset or liability, whether directly or indirectly innon-active markets.
- Level 3 inputs are unobservable inputs for the asset or liability.
The level in the fair value hierarchy within which fair value measurement is classified in whole is determined based on the input of the lowest level that is most significant for measuring its total fair value. For such purpose, the relevance of an input is assessed in connection with to measurement of the total fair value. Financial instruments that are listed in markets that are not deemed active, but which are valued based in accordance with quoted market prices, quotes from price vendors or alternative price sources supported by observable inputs, are classified in Level 2.
If a fair value measurement uses observable inputs that require significant adjustments based on unobservable inputs, this measurement is classified as Level 3. The assessment of the importance of a particular input to the measurement of fair value in whole requires judgment, taking into account specific factors of the asset or liability.
Determining what is deemed as 'observable' requires a significant judgment by Grupo Aval. Grupo Aval considers as observable data the market data which is already available, distributed or updated by the price suppliers, and it is reliable and verifiable, with no property rights, and provided by independent sources which are actively involved in the reference market.
9
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
NOTE 4 - FINANCIAL INSTRUMENTS
a) Carrying value and fair value
The following table presents an analysis, within the hierarchy of fair value, of Grupo Aval´s assets and liabilities (by class), measured at fair value on a recurring basis. For financial instruments that are not measured at fair value if the carrying amount is a reasonable approximation of fair value, fair value information is not included:
September 30, 2019 | |||||||||||
Fair Value | |||||||||||
Carrying | |||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | |||||||
ASSETS | |||||||||||
Trading investment | |||||||||||
Securities issued or secured by Colombian Government | Ps. | 3,308,959 | Ps. | 2,820,333 | Ps. | 488,626 | Ps. | - | Ps. | 3,308,959 | |
Securities issued or secured by other entities of the | 121,342 | - | 121,342 | - | 121,342 | ||||||
Colombian Government | |||||||||||
Securities issued or secured by foreign Government | 124,480 | 3,471 | 121,009 | - | 124,480 | ||||||
Securities issued or secured by central banks | 14,927 | - | 14,927 | - | 14,927 | ||||||
Securities issued or secured by other financial entities | 1,748,298 | - | 1,748,298 | - | 1,748,298 | ||||||
Securities issued or secured by entities of the Non-financial | 25,918 | - | 25,918 | - | 25,918 | ||||||
sector | |||||||||||
Other | 7,798 | - | 7,798 | - | 7,798 | ||||||
Total trading investment | Ps. | 5,351,722 | Ps. | 2,823,804 | Ps. | 2,527,918 | Ps. | - | Ps. | 5,351,722 | |
Investments in debt securities at fair value through profit or | |||||||||||
loss | |||||||||||
Other | 35,774 | - | 26,180 | 9,594 | 35,774 | ||||||
Total investments in debt securities at fair value through | Ps. | 5,387,496 | Ps. | 2,823,804 | Ps. | 2,554,098 | Ps. | 9,594 | Ps. | 5,387,496 | |
profit or loss | |||||||||||
Investments at fair value through OCI | |||||||||||
Securities issued or secured by Colombian Government | 9,848,080 | 7,501,012 | 2,347,068 | - | 9,848,080 | ||||||
Securities issued or secured by other entities of the | 394,635 | 201,640 | 192,995 | - | 394,635 | ||||||
Colombian Government | |||||||||||
Securities issued or secured by foreign Government | 4,902,629 | 10,642 | 4,891,987 | - | 4,902,629 | ||||||
Securities issued or secured by central banks | 957,833 | - | 957,833 | - | 957,833 | ||||||
Securities issued or secured by other financial entities | 3,504,377 | 529,596 | 2,974,781 | - | 3,504,377 | ||||||
Securities issued or secured by entities of the non-financial | 113,302 | - | 113,302 | - | 113,302 | ||||||
sector | |||||||||||
Other | 429,478 | - | 429,478 | - | 429,478 | ||||||
Total investments at fair value through OCI | Ps. | 20,150,334 | Ps. | 8,242,890 | Ps. | 11,907,444 | Ps. | - | Ps. | 20,150,334 | |
Total investments in debt securities | Ps. | 25,537,830 | Ps. | 11,066,694 | Ps. | 14,461,542 | Ps. | 9,594 | Ps. | 25,537,830 |
10
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
Fair Value | |||||||||||
Carrying | |||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | |||||||
Investments in equity securities | |||||||||||
Trading equity securities | 3,291,247 | 1,902 | 2,797,868 | 491,477 | 3,291,247 | ||||||
Investments in equity through OCI | 1,313,305 | 1,160,298 | 51,272 | 101,735 | 1,313,305 | ||||||
Total investments in equity securities | Ps. | 4,604,552 | Ps. | 1,162,200 | Ps. | 2,849,140 | Ps. | 593,212 | Ps. | 4,604,552 | |
Held for trading Derivatives | |||||||||||
Currency Forward | 432,457 | - | 432,457 | - | 432,457 | ||||||
Bond Forward | 1,643 | - | 1,643 | - | 1,643 | ||||||
Interest Rate Swap | 90,298 | - | 90,298 | - | 90,298 | ||||||
Currency Swap | 55,597 | - | 55,597 | - | 55,597 | ||||||
Currency Options | 75,417 | - | 75,417 | - | 75,417 | ||||||
Total held for trading derivatives | Ps. | 655,412 | Ps. | - | Ps. | 655,412 | Ps. | - | Ps. | 655,412 | |
Hedging Derivatives | |||||||||||
Currency Forward | 27,792 | - | 27,792 | - | 27,792 | ||||||
Total hedging derivatives | Ps. | 27,792 | Ps. | - | Ps. | 27,792 | Ps. | - | Ps. | 27,792 | |
Other account receivables | |||||||||||
Financial assets in concession contracts | 2,650,788 | - | - | 2,650,788 | 2,650,788 | ||||||
Total other account receivables designated at fair value | Ps. | 2,650,788 | Ps. | - | Ps. | - | Ps. | 2,650,788 | Ps. | 2,650,788 | |
Total assets at fair value on recurring basis | Ps. | 33,476,374 | Ps. | 12,228,894 | Ps. | 17,993,886 | Ps. | 3,253,594 | Ps. | 33,476,374 | |
Financial assets at amortized cost, net | |||||||||||
Investments in debt securities, net | 3,051,144 | 24,456 | 3,020,089 | - | 3,044,545 | ||||||
Securities issued or secured by other entities of the | 3,023,671 | - | 3,017,040 | - | 3,017,040 | ||||||
Colombian Government | |||||||||||
Securities issued or secured by Foreign Government | 24,429 | 24,456 | - | - | 24,456 | ||||||
Securities issued or secured by other financial entities | 3,044 | - | 3,049 | - | 3,049 | ||||||
Loan portfolio, net (see literal f for details) | 174,429,722 | 183,595,784 | |||||||||
Commercial | 98,330,444 | ||||||||||
Consumer | 55,701,871 | ||||||||||
Mortgage | 20,073,078 | ||||||||||
Microcredit | 324,329 | ||||||||||
Other accounts receivables, net | 8,176,621 | ||||||||||
Total financial assets at amortized cost, net | 185,657,487 | ||||||||||
LIABILITIES | |||||||||||
Trading Derivatives | |||||||||||
Currency forward | 617,779 | - | 617,779 | - | 617,779 |
11
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
Fair Value | ||||||||||||
Carrying | ||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | ||||||||
Bond forward | 1,025 | - | 1,025 | - | 1,025 | |||||||
Bond futures | 53 | 53 | - | - | 53 | |||||||
Interest rate swap | 83,833 | - | 83,833 | - | 83,833 | |||||||
Currency swap | 85,060 | - | 85,060 | - | 85,060 | |||||||
Currency options | 44,497 | - | 44,497 | - | 44,497 | |||||||
Total trading derivatives | Ps. | 832,247 | Ps. | 53 | Ps. | 832,194 | Ps. | - | Ps. | 832,247 | ||
Hedging derivatives | ||||||||||||
Currency forward | Ps. | 111,080 | Ps. | - | Ps. | 111,080 | Ps. | - | Ps. | 111,080 | ||
Interest rate swap | 4,230 | - | 4,230 | - | 4,230 | |||||||
Total hedging derivatives | 115,310 | - | 115,310 | - | 115,310 | |||||||
Total liabilities at fair value on recurring basis | Ps. | 947,557 | Ps. | 53 | Ps. | 947,504 | Ps. | - | Ps. | 947,557 | ||
Financial liabilities at amortized cost | ||||||||||||
Customer deposits | Ps. | 174,047,965 | Ps. | 225,511,462 | ||||||||
Checking accounts | 39,697,097 | 48,592,450 | ||||||||||
Time deposits | 76,164,222 | 96,076,204 | ||||||||||
Savings accounts | 57,774,602 | 80,396,791 | ||||||||||
Others deposits | 412,044 | 446,017 | ||||||||||
Financial obligations | 53,486,929 | 56,043,685 | ||||||||||
Interbank borrowings and overnight funds | 5,721,776 | 5,721,776 | ||||||||||
Leases contracts | 3,136,755 | 3,055,689 | ||||||||||
Borrowings from banks and similar | 19,496,506 | 20,705,836 | ||||||||||
Bonds issued (see literal e for details) | 21,457,105 | 22,858,879 | ||||||||||
Borrowings from development entities | 3,674,787 | 3,701,505 | ||||||||||
Total financial liabilities at amortized cost | Ps. | 227,534,894 | Ps. | 281,555,147 |
12
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
December 31, 2018
Fair Value | |||||||||||
Carrying | |||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | |||||||
ASSETS | |||||||||||
Trading investment | |||||||||||
Securities issued or secured by Colombian Government | Ps. | 2,270,642 | Ps. | 2,109,574 | Ps. | 161,068 | Ps. | - | Ps. | 2,270,642 | |
Securities issued or secured by other entities of the Colombian | 128,545 | 19,606 | 108,939 | - | 128,545 | ||||||
Government | |||||||||||
Securities issued or secured by foreign Government | 98,155 | - | 98,155 | - | 98,155 | ||||||
Securities issued or secured by central banks | 12,914 | - | 12,914 | - | 12,914 | ||||||
Securities issued or secured by other financial entities | 1,218,751 | - | 1,218,751 | - | 1,218,751 | ||||||
Securities issued or secured by entities of the non-financial | 29,122 | - | 29,122 | - | 29,122 | ||||||
sector | |||||||||||
Other | 4,849 | - | 4,849 | - | 4,849 | ||||||
Total trading investment | Ps. | 3,762,978 | Ps. | 2,129,180 | Ps. | 1,633,798 | Ps. | - | Ps. | 3,762,978 | |
Investments in debt securities at fair value through profit or | |||||||||||
loss | |||||||||||
Other | 31,256 | - | 17,523 | 13,733 | 31,256 | ||||||
Total investments in debt securities at fair value through | Ps. | 3,794,234 | Ps. | 2,129,180 | Ps. | 1,651,321 | Ps. | 13,733 | Ps. | 3,794,234 | |
profit or loss | |||||||||||
Investments at fair value through OCI | |||||||||||
Securities issued or secured by Colombian Government | 10,525,774 | 8,208,778 | 2,316,996 | - | 10,525,774 | ||||||
Securities issued or secured by other entities of the Colombian | 497,635 | 232,312 | 265,323 | - | 497,635 | ||||||
Government | |||||||||||
Securities issued or secured by foreign Government | 3,015,556 | 91,315 | 2,924,241 | - | 3,015,556 | ||||||
Securities issued or secured by central banks | 1,131,740 | - | 1,131,740 | - | 1,131,740 | ||||||
Securities issued or secured by other financial entities | 3,308,480 | 279,653 | 3,028,827 | - | 3,308,480 | ||||||
Securities issued or secured by entities of the non-financial sector | 209,940 | - | 209,940 | - | 209,940 | ||||||
Other | 246,632 | - | 246,632 | - | 246,632 | ||||||
Total investments at fair value through OCI | Ps. | 18,935,757 | Ps. | 8,812,058 | Ps. | 10,123,699 | Ps. | - | Ps. | 18,935,757 | |
Total investments in debt securities | Ps. | 22,729,991 | Ps. | 10,941,238 | Ps. | 11,775,020 | Ps. | 13,733 | Ps. | 22,729,991 | |
Investments in equity securities | |||||||||||
Trading equity securities | 2,672,648 | 3,060 | 2,212,915 | 456,673 | 2,672,648 | ||||||
Investments in equity through OCI | 1,090,601 | 935,737 | 51,224 | 103,640 | 1,090,601 | ||||||
Total investments in equity securities | Ps. | 3,763,249 | Ps. | 938,797 | Ps. | 2,264,139 | Ps. | 560,313 | Ps. | 3,763,249 | |
Held for trading derivatives | |||||||||||
Currency forward | 617,799 | - | 616,116 | 1,683 | 617,799 | ||||||
Bond forward | 71 | - | 71 | - | 71 | ||||||
Interest rate swap | 43,181 | - | 43,181 | - | 43,181 |
13
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
Fair Value | |||||||||||
Carrying | |||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | |||||||
Currency swap | 48,546 | - | 48,546 | - | 48,546 | ||||||
Currency options | 59,089 | - | 59,089 | - | 59,089 | ||||||
Total held for trading derivatives | Ps. | 768,686 | Ps. | - | Ps. | 767,003 | Ps. | 1,683 | Ps. | 768,686 | |
Hedging derivatives | |||||||||||
Currency forward | 30,138 | - | 30,138 | - | 30,138 | ||||||
Total hedging derivatives | Ps. | 30,138 | Ps. | - | Ps. | 30,138 | Ps. | - | Ps. | 30,138 | |
Other account receivables | |||||||||||
Financial assets in concession contracts | 2,488,414 | - | - | 2,488,414 | 2,488,414 | ||||||
Total other account receivables designated at fair value | Ps. | 2,488,414 | Ps. | - | Ps. | - | Ps. | 2,488,414 | Ps. | 2,488,414 | |
Total assets at fair value on recurring basis | Ps. | 29,780,478 | Ps. | 11,880,035 | Ps. | 14,836,300 | Ps. | 3,064,143 | Ps. | 29,780,478 | |
Financial assets at amortized cost, net | |||||||||||
Investments in debt securities, net | 2,972,545 | 32,324 | 2,952,649 | - | 2,984,973 | ||||||
Securities issued or secured by other entities of the Colombian | 2,931,111 | - | 2,943,498 | - | 2,943,498 | ||||||
Government | |||||||||||
Securities issued or secured by Foreign Governments | 32,320 | 32,324 | - | - | 32,324 | ||||||
Securities issued or secured by other financial entities | 9,114 | - | 9,151 | - | 9,151 | ||||||
Loan portfolio, net (see literal f for details) | 168,685,654 | 176,228,181 | |||||||||
Commercial | 98,051,116 | ||||||||||
Consumer | 52,006,179 | ||||||||||
Mortgage | 18,290,839 | ||||||||||
Microcredit | 337,520 | ||||||||||
Other accounts receivables, net | 6,812,229 | ||||||||||
Total financial assets at amortized cost, net | 178,470,428 | ||||||||||
LIABILITIES | |||||||||||
Trading derivatives | |||||||||||
Currency forward | 589,021 | - | 583,242 | 5,779 | 589,021 | ||||||
Bond forward | 2,730 | - | 2,730 | - | 2,730 | ||||||
Bond futures | 32 | 32 | - | - | 32 | ||||||
Interest rate swap | 32,380 | - | 32,380 | - | 32,380 | ||||||
Currency swap | 148,378 | - | 148,378 | - | 148,378 | ||||||
Currency options | 38,764 | - | 38,764 | - | 38,764 | ||||||
Total trading derivatives | Ps. | 811,305 | Ps. | 32 | Ps. | 805,494 | Ps. | 5,779 | Ps. | 811,305 | |
Hedging derivatives | |||||||||||
Currency forward | 195,539 | - | 195,539 | - | 195,539 | ||||||
Total hedging derivatives | 195,539 | - | 195,539 | - | 195,539 | ||||||
Total liabilities at fair value on recurring basis | Ps. | 1,006,844 | Ps. | 32 | Ps. | 1,001,033 | Ps. | 5,779 | Ps. | 1,006,844 | |
Financial liabilities at amortized cost | |||||||||||
Customer deposits | Ps. | 164,359,451 | Ps. | 164,682,492 | |||||||
Checking accounts | 39,702,878 | 39,702,878 |
14
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
Fair Value | |||||||||||
Carrying | |||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | |||||||
Time deposits | 66,853,012 | 67,176,010 | |||||||||
Savings accounts | 57,221,439 | 57,221,482 | |||||||||
Others deposits | 582,122 | 582,122 | |||||||||
Financial obligations | 51,211,990 | 51,811,768 | |||||||||
Interbank borrowings and overnight funds | 6,814,078 | 6,814,083 | |||||||||
Borrowings from banks and similar | 20,610,766 | 21,020,334 | |||||||||
Bonds issued (see literal e for details) | 20,140,350 | 20,152,729 | |||||||||
Borrowings from development entities | 3,646,796 | 3,824,622 | |||||||||
Total financial liabilities at amortized cost | Ps. | 215,571,441 | Ps. | 216,494,260 |
b) Fair Value determination
The following table provides information about valuation techniques and significant inputs when measuring at fair value on recurring basis assets and liabilities, with fair value hierarchy level 2 and level 3.
Level 2 financial instruments as those traded in non-active market, the following table provides information about valuation techniques and significant inputs when measuring assets and liabilities.
Valuation technique | ||
for level 2 and 3 | Significant inputs (1) | |
ASSETS | ||
Investments in debt securities at fair value | ||
In Colombian Pesos | ||
Securities issued or secured by the Colombian Government | Discounted cash flow | Estimated Prices (2) |
Securities issued or secured by Colombian government entities | Discounted cash flow | Estimated Prices (2) |
Securities issued or secured by other financial entities | Discounted cash flow | Estimated Prices (2) |
Yield and Margin | ||
Securities issued or secured by non-financial sector entities | Discounted cash flow | Estimated Prices (2) |
Other | Discounted cash flow | Estimated Prices (2) |
Yield and Margin | ||
Projected cash flow | ||
In Foreign Currency | ||
Securities issued or secured by the Colombian Government | Market Price | Quoted Prices |
Securities issued or secured by Colombian government entities | Discounted cash flow | Estimated Prices (2) |
Securities issued or secured by foreign governments | - Internal Model | - Discounted cash flows using yields from similar securities outstanding |
- Market Price | - Market Price or price calculated based on benchmarks set by price providers | |
methodologies | ||
- Bloomberg Generic / Bloomberg Valuation |
15
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
Valuation technique | |||
for level 2 and 3 | Significant inputs (1) | ||
Securities issued or secured by Central Banks | - Internal Model | - Discounted cash flows using yields from similar securities outstanding | |
- Market Price | - Market Price or price calculated based on benchmarks set by price providers | ||
methodologies | |||
Securities issued or secured by other financial entities | - Discounted cash flow | - Estimated Prices (2) | |
- Internal Model | - Quoted Price or price calculated based on benchmarks set by price providers | ||
methodologies | |||
- Market Price | - Bloomberg Generic / Bloomberg Valuation | ||
Securities issued or secured by non-financial sector entities | - Market Price | - Average Price - Quoted Price | |
- Bloomberg Generic | |||
Other | - Discounted cash flow | - Estimated Prices (2) | |
- Internal Model | - Theoretical Price Mutual Funds which by the end of the month capitalize or pay | ||
interests | |||
- Market Price | - Quoted Price | ||
Investment in equity securities | |||
Corporate stock | Market Price | Estimated Prices (2) | |
Investment funds | Market Price | Market value of underlying assets, less management and administrative fees | |
Pension and severance funds | Market Price | Market value of underlying assets, less management and administrative fees (3) | |
Trading derivatives | |||
Foreign currency forward | Discounted cash flow | - Underlying asset price | |
Debt securities forward | - Currency curve by underlying asset | ||
Interest rate swap | - Forward Exchange rates curve of the operation's currency | ||
Cross currency swap | - Implicit curves of Exchange rates forwards | ||
Swap (others) | - Swap curves by underlying asset | ||
Currency options | - Implicit volatilities matrixes and curves | ||
Currency futures | Initial price | - Quoted Price | |
Hedging derivatives | |||
Currency forward | Discounted cash flow | Curves by currency | |
LIABILITIES | |||
Derivatives held for trading | |||
Foreign currency forward | - Underlying asset price | ||
Debt securities forward | - Currency curve by underlying asset | ||
Interest rate swap | Discounted cash flow | - Forward Exchange rates curve of the operation's currency | |
Currency swap | - Implicit curves of exchange rates forwards | ||
Swap (others) | - Swap curves by underlying asset | ||
Currency options | - Implicit volatilities matrixes and curves | ||
Hedging Derivatives | Discounted cash flow | ||
Foreign currency forward | - Underlying asset price | ||
Interest rate forward | - Currency curve by underlying asset | ||
Interest rate swap | - Forward Exchange rates curve of the operation's currency | ||
- Implicit curves of Exchange rates forwards | |||
- Swap curves by underlying asset | |||
- Implicit volatilities matrixes and curves | |||
16
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
- Quoted market prices (ie obtained from price vendors)
- Estimated Price: A valuation model based on information obtained from a price vendor when it is not able to supply quoted prices (unadjusted) for each security. This model is the basis for the construction of the valuation margin of the securities that is represented on the assigned curve or reference rate. This margin remains constant on the assigned curve or reference rate when calculating the theoretical valuation price.
- The subsidiary Porvenir S.A. according to Colombian rules is required to invest to 1% of its total assets under management from severance and mandatory pension funds.
The following table provides information about valuation techniques and significant unobservable inputs when measuring Level 3 assets and liabilities at recurring fair value.
Valuation technique for level 2 and 3
ASSETS
Investments in debt securities at fair value In Colombian Pesos
OtherDiscounted cash flow
Discounted cash flow
Investments in equity securities (1)
Comparable Multiples
Net assets value
Other financial assets
Assets under concession contracts (2) | Discounted cash flow |
Significant inputs
Projected payments flow of mortgage securitizations
- Growth in values after 5 years
- Net Income
- Growth in residual values after 5 years
- Discount interest rates
- EBITDA Value
- Multiple of EBITDA
- Net income value
- Multiple of net income
- Net assets value (NAV)
- Free-cashflow from concession contracts
- Concession contracts maturity period
- Perpetuity value of the year "n"free-cash flow
- Present value of the discounted residual value at Weighted Average Cost of Capital ("WACC").
- Financial income: annual adjustment of the financial asset's value.
17
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
(1) Valuation of equity instruments Level 3
The investments with fair value hierarchy level 3 have significant unobservable inputs. Level 3 instruments includes equity instruments, which are not quoted on any stock exchange. Like observable prices are not available for these securities, Grupo Aval has used valuation techniques as discounted cash flows to obtain fair value.
The following table includes a sensitivity analysis of changes in these variables in the equity of Grupo Aval, bearing in mind that the variations in fair value of said investments are recorded in equity because they correspond to investments classified as equity instruments at fair value with changes in equity.
The following table includes a sensitivity analysis of main level 3 equity securities of December 31, 2018:
Methods and Variables | Variation | Favorable | Unfavorable | ||
impact | impact | ||||
Comparable Multiples / Recent Transaction Price | |||||
EBITDA Number of times | +/-1 x | Ps. | 1,819 | Ps. | (1,823) |
Adjusted Net Asset Value | |||||
Most relevant variable in assets | +/-10% | 221 | (177) | ||
Adjusted discounted cash flow | |||||
Growth in residual values | +/-1% of the gradient | 204 | (134) | ||
+/-1% | 60 | (147) | |||
Growth in residual values after 5 years | +/- 30 bp | 135 | (101) | ||
+/-1% | 743 | (741) | |||
Income | +/-1% | 710 | (674) | ||
+/- 1% annual | 352 | (529) | |||
Discount interest rates | +/- 50 pb | 597 | (572) | ||
Ps. | 4,841 | Ps. | (4,898) | ||
(2) Valuation of financial assets under concession arrangement rights
Promigas and subsidiaries, designated at fair value the financial assets under concession contracts, the method of discounted cash flows was used to determine the fair value.
The assumptions in the calculation of the financial asset were:
- Financial assets are calculated taking into account the expiration date of each concession contract.
- The calculation was carried out in proportion to the expiration of each of the concession contracts in force.
- Only the operational cash flows of these assets under concession were taken into account.
The components of the calculations are as follows:
- Free cash flow generated solely by assets under concession.
- Expiration period of the concession.
- Amountin-perpetuity of the Free Cash Flow (FCF) of the year, estimated factoring a growth in the residual amount between 1% and 3% each year.
- Current amount of the residual amount Weighted Average Cost of Capital (WACC), estimated taking into account an interest rate between 8.64 % and 9.09% each year.
- Financial Income: Annual adjustment of the amount of the financial asset to WACC (*).
- Nominal WACC calculated under the Capital Asset Pricing Model (CAPM) methodology for each, updated annually. The following variables were used for determining the WACC:
- Beta Unlevered USA (Oil/Gas Distribution): Damodaran. [Beta unlevered 0.61, 2018]
- Risk Free Rate, Source: Geometric Average1992-2018 of American bonds "T-Bonds".
- Marker Return, Source: Geometric Average1992-2018 Damodaran "Stocks" USA.
- Market Premium: Market Return - Risk Free Rate
- Country Risk Premium: Average last 5 years EMBI (Difference between10-year Colombian sovereign bonds and 10 year "T-Bonds"). Damodaran
18
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
- Emerging Market: Equity Premium Emerging countries (Lambda - Damodaran)
Sensitivity analysis
The following table includes a sensitivity analysis of the assumptions used by Promigas and its subsidiaries in the calculation of fair value of unconditional transfer rights of gas pipelines to Government entities at the expiration date of the contracts. The value of the financial asset at September 30, 2019 is Ps. 2,650,788.
September 30, 2019 | ||||
Variable | +100 bps | -100 bps | ||
WACC | Ps. (637,556) | Ps. 979,942 | ||
Growth rate | 550,652 | (387,750) |
- Transfer of levels
During the current year, due not to changes in market conditions, the following table summarizes the transfer between fair value levels 1 and 2 as of September 30, 2019 and December 31, 2018. In general, transfers between Level 1 and Level 2 in the investment portfolios are due, fundamentally, to changes in the liquidity levels of the securities in the markets.
September 30, 2019
Investments in debt securities at | Investments in debt securities at | |||||||||
FVTPL | FVOCI | |||||||||
Transfers between: | Transfers between: | |||||||||
Level 2 to | Level 1 to | Level 2 to | Level 1 to | |||||||
Level 1 | Level 2 | Level 1 | Level 2 | |||||||
Assets | ||||||||||
Investments in debt securities | ||||||||||
at fair value | ||||||||||
Securities issued or secured by | ||||||||||
Colombian Government | Ps. | - | Ps. | - | Ps. | 107,890 | Ps. | - | ||
Securities issued or secured by | ||||||||||
other Colombian Government | ||||||||||
entities | - | 1 | - | 37,913 | ||||||
Securities issued or secured by | ||||||||||
other financial entities | - | - | 47,350 | 127,398 | ||||||
Ps. | - | Ps. | 1 | Ps. | 155,240 | Ps. | 165,311 | |||
December 31, 2018 | ||||||||||
Investments in debt securities at | Investments in debt securities at | |||||||||
FVTPL | FVOCI | |||||||||
Transfers between: | Transfers between: | |||||||||
Level 2 to | Level 1 to | Level 2 to | Level 1 to | |||||||
Level 1 | Level 2 | Level 1 | Level 2 |
Assets
Investments in debt securities at fair value
Securities issued or secured by
Colombian GovernmentPs. Securities issued or secured by
other Colombian Government entities
Securities issued or secured by other financial entities
- Ps. | - Ps. | 17,668 | Ps. | 14,081 |
- | - | 229,202 | - | |
- | - | - | 189,013 |
Ps. | - Ps. | - Ps. | 246,870 Ps. | 203,094 | |||
19
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
There were no transfers of fair values between levels and 2 to or from level 3.
The reconciliation of the balances at the beginning of the period to the closing balances with the fair value measurements classified at Level 3 is shown in the following table.
Financial | Financial assets | |||||
assets | in | |||||
in debt | Equity | concession | ||||
securities | instruments | arrangements | ||||
December 31, 2018 | Ps. | 13,733 | Ps. | 560,313 | Ps. | 2,488,414 |
Valuation adjustment with an effect on income | (3,526) | 16,247 | 162,374 | |||
Valuation adjustments with an effect on OCI | - | (2,151) | - | |||
Additions | - | 18,803 | - | |||
Sales / redemptions | (613) | - | - | |||
Transfer to level 2 | - | - | - | |||
September 30, 2019 | Ps. | 9,594 | Ps. | 593,212 | Ps. | 2,650,788 |
- Items Measurements at Fair Value on aNon-Recurring Basis
The following table present Grupo Aval's assets and liabilities, classified within the fair value hierarchy, which are measured on a nonrecurring basis as of September 30, 2019 and December 31, 2018 at fair value less cost of sale:
September 30 de 2019
Level 1 | Level 2 | Level 3 | Total | |||||
Impaired collateralized loans | Ps. | - | Ps. | - | Ps. | 522,615 | Ps. | 522,615 |
Non- current assets held for sale | - | - | 98,588 | 98,588 | ||||
Ps. | - | Ps. | - | Ps. | 621,203 | Ps. | 621,203 | |
December 31, 2018
Level 1 | Level 2 | Level 3 | Total | |||||
Impaired collateralized loans | Ps. | - | Ps. | - | Ps. | 896,257 | Ps. | 896,257 |
Non- current assets held for sale | - | - | 186,714 | 186,714 | ||||
Ps. | - | Ps. | - | Ps. | 1,082,971 | Ps. | 1,082,971 | |
- Financial obligations from issued bonds
The different entities from Grupo Aval are authorized by the Superintendency of Finance and by the regulatory entities abroad where Grupo Aval operates, for issuing or placing either bonds or general guarantee bonds. The bonds issued by Grupo Aval and subsidiaries are non-guaranteed. Detail of issued bonds net of eliminations as of September 30, 2019 and December 31, 2018, by issue date and maturity date was as follows:
Local Currency
Issuer | Issue Date | September | December | Maturity | Interest Rate | |||||
30, 2019 | 31, 2018 | Date | ||||||||
Banco de Bogotá S.A. | 23/02/2010 | 134,990 | 134,736 | 23/02/2020 | CPI + 5.45% and | |||||
UVR + 5.45% | ||||||||||
Between | Between | CPI + 1.75% a | ||||||||
Banco de Occidente S.A | 22/09/2011 | 3,393,043 | 3,143,903 | 26/10/2019 | 4.65%, Fixed | |||||
and | and | between 5.83% | ||||||||
18/09/2019 | 14/12/2032 | to 7.85% | ||||||||
Between | Between | CPI +2.16% to | ||||||||
Corporación Financiera Colombiana | 27/08/2009 | 29/01/2020 | ||||||||
2,901,628 | 2,853,685 | 5.99%, Fixed | ||||||||
S.A. | and | and | ||||||||
7.10% | ||||||||||
27/08/2019 | 02/03/2043 | |||||||||
20
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
Issuer | Issue Date | September | December | Maturity | Interest Rate | |||||
30, 2019 | 31, 2018 | Date | ||||||||
Between | Between | CPI+ 2.90% to | ||||||||
Banco Popular S.A | 26/02/2013 | 1,753,677 | 1,616,729 | 14/02/2020 | 4.13%; Fixed | |||||
and | and | between 6.17% | ||||||||
13/02/2019 | 12/10/2026 | to 8.10% | ||||||||
Between | Between | |||||||||
Grupo Aval Acciones y Valores S.A. | 03/12/2009 | Ps. | 1,108,853 | Ps. | 1,108,713 | 03/12/2019 | CPI + 2.69% to | |||
and | and | 5.20% | ||||||||
28/06/2017 | 28/06/2042 | |||||||||
Peso denominated Total | Ps. | 9,292,191 | Ps. | 8,857,766 | ||||||
Foreign Currency
September | December | ||||||||
Issuer | Issue Date | 30, 2019 | 31, 2018 | Maturity Date | Interest Rate | ||||
Between | Between | Between 4.38% to | |||||||
Banco de Bogotá S.A. | 19/02/2013 and | 7,556,839 | 7,042,678 | 19/02/2023 and | |||||
6.25% | |||||||||
03/08/2017 | 03/08/2027 | ||||||||
BAC Credomatic | |||||||||
Between | Between | Between 5.20% to | |||||||
El Salvador | 11/02/2013 and | 841,307 | 753,556 | 22/10/2019 and | |||||
5.85% | |||||||||
19/08/2019 | 19/08/2024 | ||||||||
Between | Between | Between 0.75% to | |||||||
Honduras | 12/05/2017 and | 339,644 | 205,017 | 12/05/2020 and | |||||
9.50% | |||||||||
09/09/2019 | 11/04/2022 | ||||||||
Between | Between | Between 4.25% to | |||||||
Guatemala | 09/07/2018 and | - | 14,025 | 09/07/2019 and | |||||
5.50% | |||||||||
24/08/2018 | 26/08/2019 | ||||||||
BAC Credomatic Total | Ps. | 1,180,951 | Ps. | 972,598 | |||||
Banco de Bogotá S.A. Total | Ps. | 8,737,790 | Ps. | 8,015,276 | |||||
Between | |||||||||
Grupo Aval Limited | 11/02/2013 and | 3,427,124 | 3,267,308 | 26/09/2022 | 4.75% | ||||
25/06/2019 | |||||||||
Foreign Currency Total | Ps. | 12,164,914 | Ps. | 11,282,584 | |||||
Total of Bonds | Ps. | 21,457,105 | Ps. | 20,140,350 | |||||
The amount of issued bonds due over 12 months as of September 30, 2019 is Ps. 19,424,123 and December 31, 2018 is Ps. 18,772,405.
Grupo Aval has not had any defaults of principal or interest or other breaches with respect to its liabilities during the nine- months ended September 30, 2019 and year ended December 31, 2018, and Grupo Aval is complying with the related covenants agreed with investors and debtors.
21
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
- Credit risk concentration
The following is the balance of financial assets by loan portfolio and their provision for impairment as of September 30,
2019 and December 31, 2018:
September 30, 2019 | December 31, 2018 | ||||||||||||
Portfolio | Allowance | Net balance | Gross | Allowance | Net balance | ||||||||
Gross balance | for | of credit | for | of credit | |||||||||
segment | balance | ||||||||||||
impairment | portfolio | impairment | portfolio | ||||||||||
Commercial (1) | Ps. | 103,240,208 | Ps. | 4,909,764 | Ps. | 98,330,444 | Ps. | 102,408,977 | Ps. | 4,357,861 | Ps. | 98,051,116 | |
Consumer | 59,306,025 | 3,604,154 | 55,701,871 | 55,455,064 | 3,448,885 | 52,006,179 | |||||||
Mortgage | 20,425,343 | 352,265 | 20,073,078 | 18,592,103 | 301,264 | 18,290,839 | |||||||
Microcredit | 413,491 | 89,162 | 324,329 | 425,697 | 88,177 | 337,520 | |||||||
Total | Ps. | 183,385,067 | Ps. | 8,955,345 | Ps. | 174,429,722 | Ps. | 176,881,841 | Ps. | 8,196,187 | Ps. | 168,685,654 | |
- Inter-bankand overnight funds decreased Ps. 3,502,132, ending with a balance of Ps. 4,133,056 as of September 30, 2019 and Ps. 7,635,188 as of December 31,2018.
Loans are measured at amortized cost on the statement of financial position and are classified as commercial, consumer, mortgages, and microcredit. Due to the significance of the financial leasing portfolio for Grupo Aval, these amounts are also presented separately in all the tables for disclosure purposes:
September 30, 2019 | |||||||||||
Gross balance in | Leasing | Balance | |||||||||
Statement of | |||||||||||
Portfolio segment | presentation | according | |||||||||
financial | |||||||||||
adjustment | to disclosure | ||||||||||
position | |||||||||||
Commercial | Ps. | 103,240,208 | Ps. | (10,312,963) | Ps. | 92,927,245 | |||||
Consumer | 59,306,025 | (271,436) | 59,034,589 | ||||||||
Mortgages | 20,425,343 | (1,492,701) | 18,932,642 | ||||||||
Microcredit | 413,491 | - | 413,491 | ||||||||
Financial leasing | - | 12,077,100 | 12,077,100 | ||||||||
Total portfolio | Ps. | 183,385,067 | Ps. | - | Ps. | 183,385,067 | |||||
December 31, 2018 | |||||||||||
Gross balance in | Leasing | Balance | |||||||||
Statement of | |||||||||||
Portfolio segment | presentation | according | |||||||||
financial | |||||||||||
adjustment | to disclosure | ||||||||||
position | |||||||||||
Commercial | Ps. | 102,408,977 | Ps. | (9,858,952) | Ps. | 92,550,025 | |||||
Consumer | 55,455,064 | (254,483) | 55,200,581 | ||||||||
Mortgages | 18,592,103 | (1,312,741) | 17,279,362 | ||||||||
Microcredit | 425,697 | - | 425,697 | ||||||||
Financial leasing | - | 11,426,176 | 11,426,176 | ||||||||
Total portfolio | Ps. | 176,881,841 | Ps. | - | Ps. | 176,881,841 | |||||
22
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
(1) Loan portfolio by economic sector
Below is the gross balance of the loan portfolio distribution of Grupo Aval by economic activity as of September 30, 2019 and December 31, 2018:
Sector | September 30, | % | December 31, 2018 | % | ||||
2019 | ||||||||
Consumer services | Ps. | 85,127,384 | 46% | Ps. | 78,976,887 | 45% | ||
Commercial services | 38,741,364 | 21% | 41,160,951 | 23% | ||||
Construction | 11,654,208 | 6% | 11,093,895 | 6% | ||||
Food, beverage and tobacco | 8,581,775 | 5% | 8,128,767 | 5% | ||||
Transportation and communications | 6,494,513 | 4% | 7,117,087 | 4% | ||||
Public services | 6,028,786 | 4% | 6,123,390 | 4% | ||||
Chemical production | 6,060,165 | 3% | 5,614,918 | 3% | ||||
Other industrial and manufacturing products | 5,578,802 | 3% | 4,859,538 | 3% | ||||
Agricultural | 4,576,063 | 3% | 4,201,518 | 2% | ||||
Government | 4,378,100 | 2% | 3,868,987 | 2% | ||||
Trade and tourism | 2,503,775 | 1% | 2,353,139 | 1% | ||||
Mining products and oil | 1,268,127 | 1% | 1,094,718 | 1% | ||||
Other | 2,392,005 | 1% | 2,288,046 | 1% | ||||
Total of each economic sector | Ps. | 183,385,067 | 100% | Ps. | 176,881,841 | 100% | ||
(2) Portfolio credit by risk level rating
As of September 30, 2019, and December 31, 2018, the following is a summary of the portfolio credit by risk level rating:
September 30, 2019 | ||||||||
Stage 1 | Stage 2 | Stage 3 | Total | |||||
Commercial | ||||||||
"A" Normal risk | Ps. | 83,232,887 | Ps. | 239,359 | Ps. | 95,642 | Ps. | 83,567,888 |
"B" Acceptable risk | 345,472 | 1,904,140 | 317,408 | 2,567,020 | ||||
"C" Appreciable risk | 57,053 | 247,564 | 2,325,541 | 2,630,158 | ||||
"D" Significant risk | 196 | 21,089 | 2,187,433 | 2,208,718 | ||||
"E" Risk of nonrecoverability | 603 | 3,846 | 1,949,012 | 1,953,461 | ||||
Commercial portfolio gross balance | Ps. | 83,636,211 | Ps. | 2,415,998 | Ps. | 6,875,036 | Ps. | 92,927,245 |
Consumer | ||||||||
"A" Normal risk | Ps. | 51,223,509 | Ps. | 1,962,526 | Ps. | 11,255 | Ps. | 53,197,290 |
"B" Acceptable risk | 754,144 | 990,737 | 13,884 | 1,758,765 | ||||
"C" Appreciable risk | 113,335 | 1,293,383 | 521,836 | 1,928,554 | ||||
"D" Significant risk | 26,317 | 220,368 | 1,154,482 | 1,401,167 | ||||
"E" Risk of nonrecoverability | 4,809 | 38,925 | 705,079 | 748,813 | ||||
Consumer portfolio gross balance | Ps. | 52,122,114 | Ps. | 4,505,939 | Ps. | 2,406,536 | Ps. | 59,034,589 |
Mortgage | ||||||||
"A" Normal risk | Ps. | 16,911,543 | Ps. | 475,097 | Ps. | 158 | Ps. | 17,386,798 |
"B" Acceptable risk | 104,132 | 446,010 | 224 | 550,366 | ||||
"C" Appreciable risk | 17,127 | 464,348 | 33,618 | 515,093 | ||||
"D" Significant risk | 115 | 14,649 | 177,766 | 192,530 | ||||
"E" Risk of nonrecoverability | 61 | 168 | 287,626 | 287,855 | ||||
Mortgage portfolio gross balance | Ps. | 17,032,978 | Ps. | 1,400,272 | Ps. | 499,392 | Ps. | 18,932,642 |
Microcredit | ||||||||
"A" Normal risk | Ps. | 332,542 | Ps. | 1,623 | Ps. | 291 | Ps. | 334,456 |
"B" Acceptable risk | 223 | 11,159 | - | 11,382 | ||||
"C" Appreciable risk | 42 | 7,793 | 2 | 7,837 | ||||
"D" Significant risk | 49 | 2,421 | 5,666 | 8,136 | ||||
"E" Risk of nonrecoverability | 31 | 1,688 | 49,961 | 51,680 | ||||
Microcredit portfolio gross balance | Ps. | 332,887 | Ps. | 24,684 | Ps. | 55,920 | Ps. | 413,491 |
23
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
September 30, 2019 | |||||||||||||||||
Stage 1 | Stage 2 | Stage 3 | Total | ||||||||||||||
Financial leasing | |||||||||||||||||
"A" Normal risk | Ps. | 10,413,266 | Ps. | 108,776 | Ps. | 17,490 | Ps. | 10,539,532 | |||||||||
"B" Acceptable risk | 179,190 | 244,936 | 64,503 | 488,629 | |||||||||||||
"C" Appreciable risk | 21,933 | 56,038 | 208,970 | 286,941 | |||||||||||||
"D" Significant risk | 113 | 2,454 | 522,116 | 524,683 | |||||||||||||
"E" Risk of nonrecoverability | 2 | - | 237,313 | 237,315 | |||||||||||||
Financial leasing portfolio gross balance | Ps. | 10,614,504 | Ps. | 412,204 | Ps. | 1,050,392 | Ps. | 12,077,100 | |||||||||
Gross balance of financial assets per credit | |||||||||||||||||
portfolio | Ps. | 163,738,694 | Ps. | 8,759,097 | Ps. | 10,887,276 | Ps. | 183,385,067 | |||||||||
December 31, 2018 | |||||||||||||||||
Stage 1 | Stage 2 | Stage 3 | Total | ||||||||||||||
Commercial | |||||||||||||||||
"A" Normal risk | Ps. | 83,532,853 | Ps. | 195,949 | Ps. | 183,263 | Ps. | 83,912,065 | |||||||||
"B" Acceptable risk | 565,266 | 1,220,838 | 491,062 | 2,277,166 | |||||||||||||
"C" Appreciable risk | 88,802 | 227,429 | 2,680,090 | 2,996,321 | |||||||||||||
"D" Significant risk | 1,290 | 36,295 | 1,548,951 | 1,586,536 | |||||||||||||
"E" Risk of nonrecoverability | 3,008 | 10,350 | 1,764,579 | 1,777,937 | |||||||||||||
Commercial portfolio gross balance | Ps. | 84,191,219 | Ps. | 1,690,861 | Ps. | 6,667,945 | Ps. | 92,550,025 | |||||||||
Consumer | |||||||||||||||||
"A" Normal risk | Ps. | 47,782,665 | Ps. | 1,815,283 | Ps. | 19,295 | Ps. | 49,617,243 | |||||||||
"B" Acceptable risk | 799,326 | 1,004,173 | 12,805 | 1,816,304 | |||||||||||||
"C" Appreciable risk | 128,850 | 1,149,796 | 458,474 | 1,737,120 | |||||||||||||
"D" Significant risk | 23,896 | 228,509 | 1,070,538 | 1,322,943 | |||||||||||||
"E" Risk of nonrecoverability | 6,568 | 37,819 | 662,584 | 706,971 | |||||||||||||
Consumer portfolio gross balance | Ps. | 48,741,305 | Ps. | 4,235,580 | Ps. | 2,223,696 | Ps. | 55,200,581 | |||||||||
Mortgage | |||||||||||||||||
"A" Normal risk | Ps. | 15,478,116 | Ps. | 563,066 | Ps. | 20,965 | Ps. | 16,062,147 | |||||||||
"B" Acceptable risk | 72,557 | 337,093 | 3,059 | 412,709 | |||||||||||||
"C" Appreciable risk | 13,547 | 418,754 | 35,318 | 467,619 | |||||||||||||
"D" Significant risk | 151 | 11,632 | 101,164 | 112,947 | |||||||||||||
"E" Risk of nonrecoverability | 1,686 | 5,196 | 217,058 | 223,940 | |||||||||||||
Mortgage portfolio gross balance | Ps. | 15,566,057 | Ps. | 1,335,741 | Ps. | 377,564 | Ps. | 17,279,362 | |||||||||
Microcredit | |||||||||||||||||
"A" Normal risk | Ps. | 344,424 | Ps. | 2,897 | Ps. | 194 | Ps. | 347,515 | |||||||||
"B" Acceptable risk | 162 | 10,542 | - | 10,704 | |||||||||||||
"C" Appreciable risk | 71 | 7,519 | - | 7,590 | |||||||||||||
"D" Significant risk | 35 | 2,980 | 5,671 | 8,686 | |||||||||||||
"E" Risk of nonrecoverability | 31 | 1,436 | 49,735 | 51,202 | |||||||||||||
Microcredit portfolio gross balance | Ps. | 344,723 | Ps. | 25,374 | Ps. | 55,600 | Ps. | 425,697 | |||||||||
Financial leasing | |||||||||||||||||
"A" Normal risk | Ps. | 9,818,788 | Ps. | 79,008 | Ps. | 26,299 | Ps. | 9,924,095 | |||||||||
"B" Acceptable risk | 267,541 | 183,862 | 61,275 | 512,678 | |||||||||||||
"C" Appreciable risk | 45,418 | 56,561 | 217,937 | 319,916 | |||||||||||||
"D" Significant risk | 178 | 10,403 | 477,820 | 488,401 | |||||||||||||
"E" Risk of nonrecoverability | 446 | 114 | 180,526 | 181,086 | |||||||||||||
Financial leasing portfolio gross balance | Ps. | 10,132,371 | Ps. | 329,948 | Ps. | 963,857 | Ps. | 11,426,176 | |||||||||
Gross balance of financial assets per credit | |||||||||||||||||
portfolio | Ps. | 158,975,675 | Ps. | 7,617,504 | Ps. | 10,288,662 | Ps. | 176,881,841 | |||||||||
24
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
(3) Loss allowance for loans, financial assets and others receivable
The table below shows the loss allowance balances as of September 30, 2019.
September 30, 2019 | ||||||||||
Stage 1 | Stage 2 | Stage 3 | ||||||||
Lifetime | Lifetime | Simplified | ||||||||
12-month | ECL not | ECL | Total | |||||||
approach | ||||||||||
ECL | credit- | credit- | ||||||||
impaired | impaired | |||||||||
Loan portfolio | ||||||||||
Commercial loan portfolio | Ps. | 637,078 | Ps. | 220,876 | Ps. | 3,612,476 | Ps. | - | Ps. | 4,470,430 |
Consumer loan portfolio | 1,062,118 | 924,757 | 1,610,757 | - | 3,597,632 | |||||
Mortgage loan portfolio | 44,927 | 84,873 | 177,440 | - | 307,240 | |||||
Microcredit loan portfolio | 24,219 | 11,728 | 53,215 | - | 89,162 | |||||
Financial leasing loan | 63,672 | 32,662 | 394,547 | - | 490,881 | |||||
portfolio | ||||||||||
Total loan portfolio | Ps. | 1,832,014 | Ps. | 1,274,896 | Ps. | 5,848,435 | Ps. | - | Ps. | 8,955,345 |
Investments in debt | 602 | - | - | - | 602 | |||||
securities at amortized cost | ||||||||||
Other accounts receivable | 11,047 | 7,648 | 91,450 | 177,756 | 287,901 | |||||
Total loss allowance | ||||||||||
financial assets at | Ps. | 1,843,663 | Ps. | 1,282,544 | Ps. | 5,939,885 | Ps. | 177,756 | Ps. | 9,243,848 |
amortized cost | ||||||||||
Investments in debt securities at FVOCI Loan commitments and financial guarantee contracts
31,591 | 9,618 | - | - | 41,209 |
34,555 | 3,728 | 654 | - | 38,937 |
Total loss allowance | Ps. | 1,909,809 Ps. | 1,295,890 Ps. | 5,940,539 Ps. | 177,756 Ps. | 9,323,994 | ||||
The table below shows the gross amount and loss allowance balances, for loans stage 3 individually assessed for ECL as of September 30, 2019.
September 30, 2019
Gross Amount | Collateral | Allowance | ||||
Registered | Guarantees (1) | Recognized | ||||
Without recognized provision | ||||||
Commercial | Ps. | 121,857 | Ps. | 49,489 | Ps. | - |
Consumer | - | - | - | |||
Financial Leasing | 70,330 | - | - | |||
Subtotal | Ps. | 192,187 | Ps. | 49,489 | Ps. | - |
With recognized provision | ||||||
Commercial | 6,258,685 | 614,464 | 2,863,335 | |||
Consumer | 3,081 | 874 | 2,142 | |||
Financial Leasing | 764,372 | 117,886 | 274,482 | |||
Subtotal | Ps. | 7,026,138 | Ps. | 733,224 | Ps. | 3,139,959 |
Totals | ||||||
Commercial | 6,380,542 | 663,953 | 2,863,335 | |||
Consumer | 3,081 | 874 | 2,142 | |||
Financial Leasing | 834,702 | 117,886 | 274,482 | |||
Total | Ps. | 7,218,325 | Ps. | 782,713 | Ps. | 3,139,959 |
- Includes only the guarantees used in the individual provision process by the method of making the guarantee minus cost of sales.
25
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
The difference between the value of the loan and the guarantees disclosed on the table above correspond to unsecured loans valued with the discounted cash flow method. When using this method, it is implied that it is possible for the customer to make future payments.
The loss allowance recognized in the period is impacted by a variety of factors, as described below:
- Transfers between Stage 1 and Stages 2 or 3 due to financial instruments experiencing significant increases (or decreases) in credit risk or becomingcredit-impaired in the period, and the consequent "step up" (or "step down") between 12-month and lifetime ECL;
- Additional allowances for new financial instruments recognized during the period, as well as releases for financial instrumentsde-recognized in the period;
- Impact of the measurement of ECL due to changes made to models and assumptions;
- Discount unwind within ECL due to the passage of time, as ECL is measured on a present value basis;
- Foreign exchange retranslations for asset denominated in foreign currencies and other movements; and
- Financial assets derecognized during the period andwrite-offs of allowances related to assets than were written off during the period
The following tables show the reconciliations from the opening to the closing balance of the loss allowance by class of financial instrument.
Loan portfolio
Stage 1 | Stage 2 | Stage 3 | |||||||
Lifetime | Lifetime | Total | |||||||
12-month | ECL not | ||||||||
ECL credit- | |||||||||
ECL | credit- | ||||||||
impaired | |||||||||
impaired | |||||||||
Loss allowance as of 31 December 2018 | Ps. | 1,824,874 | Ps. | 1,197,046 | Ps. | 5,174,267 | Ps. | 8,196,187 | |
Transfers: | |||||||||
Transfer from stage 1 to stage 2 | (229,747) | 229,747 | - | - | |||||
Transfer from stage 1 to stage 3 | (196,217) | - | 196,217 | - | |||||
Transfer from stage 2 to stage 3 | - | (508,993) | 508,993 | - | |||||
Transfer from stage 3 to stage 2 | - | 90,295 | (90,295) | - | |||||
Transfer from stage 2 to stage 1 | 271,507 | (271,507) | - | - | |||||
Transfer from stage 3 to stage 1 | 109,749 | - | (109,749) | - | |||||
Net remeasurement of loss allowance (2) | (195,035) | 518,115 | 2,719,533 | 3,042,613 | |||||
New financial assets originated or purchased | 476,981 | 79,355 | 137,559 | 693,895 | |||||
Financial assets that have been derecognized | (281,001) | (107,820) | (202,451) | (591,272) | |||||
Unwind of discount (1) | 555 | 2,336 | 367,938 | 370,829 | |||||
FX and other movements | 85,383 | 86,074 | (40,731) | 130,726 | |||||
Write-offs | (35,035) | (39,752) | (2,812,846) | (2,887,633) | |||||
Loss allowance as of September 30, 2019 | Ps. | 1,832,014 | Ps. | 1,274,896 | Ps. | 5,848,435 | Ps. | 8,955,345 | |
- The unwind of discount on Stage 3 financial assets is reported within "interest income" so that interest income is recognized on the amortized cost (after deducting the ECL allowance)
- This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies from the opening to the closing balance, the following table shows impact by stage:
Stage 1 | Stage 2 | Stage 3 | Total | ||||
12-month | Lifetime ECL | Lifetime ECL | |||||
ECL | not credit- | credit- | |||||
impaired | impaired | ||||||
Ps. | (17,182) Ps. | (4,203) Ps. | 76,858 Ps. | 55,473 |
26
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
Commercial loan portfolio
Stage 1 | Stage 2 | Stage 3 | |||||||
Lifetime | Lifetime | ||||||||
12-month | ECL not | Total | |||||||
ECL credit- | |||||||||
ECL | credit | ||||||||
impaired | |||||||||
impaired | |||||||||
Loss allowance as of 31 December 2018 | Ps. | 695,728 | Ps. | 190,633 | Ps. | 3,051,088 | Ps. | 3,937,449 | |
Transfers: | |||||||||
Transfer from stage 1 to stage 2 | (33,655) | 33,655 | - | - | |||||
Transfer from stage 1 to stage 3 | (27,227) | - | 27,227 | - | |||||
Transfer from stage 2 to stage 3 | - | (84,727) | 84,727 | - | |||||
Transfer from stage 3 to stage 2 | - | 18,068 | (18,068) | - | |||||
Transfer from stage 2 to stage 1 | 29,955 | (29,955) | - | - | |||||
Transfer from stage 3 to stage 1 | 16,286 | - | (16,286) | - | |||||
Net remeasurement of loss allowance (2) (3) | (140,857) | 95,020 | 972,017 | 926,180 | |||||
New financial assets originated or purchased | 230,885 | 14,119 | 70,613 | 315,617 | |||||
Financial assets that have been derecognized | (158,973) | (31,969) | (117,782) | (308,724) | |||||
Unwind of discount (1) | 555 | 2,320 | 274,570 | 277,445 | |||||
FX and other movements | 24,636 | 14,135 | (15,832) | 22,939 | |||||
Write-offs | (255) | (423) | (699,798) | (700,476) | |||||
Loss allowance as of September 30, 2019 | Ps. | 637,078 | Ps. | 220,876 | Ps. | 3,612,476 | Ps. | 4,470,430 | |
- The unwind of discount on Stage 3 financial assets is reported within "interest income" so that interest income is recognized on the amortized cost (after deducting the ECL allowance)
- The net remeasurement of loss allowance includes Ps. 322,568 by Concesionaria Ruta del Sol.
- This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies from the opening to the closing balance, the following table shows impact by stage:
Stage 1 | 12- | Stage 2 Lifetime ECL | Stage 3 Lifetime ECL | |||||
month ECL | not credit-impaired | credit-impaired | Total | |||||
Ps. | 5,629 | Ps. | 5,728 | Ps. | 34,703 | Ps. 46,060 |
Consumer loan portfolio
Stage 1 | Stage 2 | Stage 3 | ||||||
Lifetime | Lifetime | |||||||
12-month | ECL not | Total | ||||||
ECL credit- | ||||||||
ECL | credit- | |||||||
impaired | ||||||||
impaired | ||||||||
Loss allowance as of 31 December 2018 | Ps. | 998,390 | Ps. | 890,556 | Ps. | 1,553,365 | Ps. | 3,442,311 |
Transfers: | ||||||||
Transfer from stage 1 to stage 2 | (177,390) | 177,390 | - | - | ||||
Transfer from stage 1 to stage 3 | (155,936) | - | 155,936 | - | ||||
Transfer from stage 2 to stage 3 | - | (377,575) | 377,575 | - | ||||
Transfer from stage 3 to stage 2 | - | 57,586 | (57,586) | - | ||||
Transfer from stage 2 to stage 1 | 210,897 | (210,897) | - | - | ||||
Transfer from stage 3 to stage 1 | 83,429 | - | (83,429) | - | ||||
Net remeasurement of loss allowance (2) | (18,779) | 374,370 | 1,573,449 | 1,929,040 | ||||
New financial assets originated or purchased | 216,083 | 62,645 | 51,326 | 330,054 | ||||
Financial assets that have been derecognized | (118,278) | (72,078) | (70,244) | (260,600) | ||||
Unwind of discount (1) | - | 16 | 60,010 | 60,026 | ||||
FX and other movements | 57,968 | 61,838 | (17,969) | 101,837 | ||||
Write-offs | (34,266) | (39,094) | (1,931,676) | (2,005,036) | ||||
Loss allowance as of September 30, 2019 | Ps. | 1,062,118 | Ps. | 924,757 | Ps. | 1,610,757 | Ps. | 3,597,632 |
27
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
- The unwind of discount on Stage 3 financial assets is reported within "interest income" so that interest income is recognized on the amortized cost (after deducting the ECL allowance)
- This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies from the opening to the closing balance, the following table shows impact by stage:
Stage 2 | Stage 3 | ||||||||||||||||||
Stage 1 | Lifetime ECL | Lifetime ECL | |||||||||||||||||
12-month | not credit- | credit- | |||||||||||||||||
ECL | impaired | impaired | Total | ||||||||||||||||
Ps. | (19,751) Ps. | (10,415) | Ps. | 40,286 Ps. | 10,120 | ||||||||||||||
Mortgage loan portfolio | |||||||||||||||||||
Stage 1 | Stage 2 | Stage 3 | |||||||||||||||||
Lifetime | Lifetime | ||||||||||||||||||
12-month | ECL not | Total | |||||||||||||||||
ECL credit- | |||||||||||||||||||
ECL | credit- | ||||||||||||||||||
impaired | |||||||||||||||||||
impaired | |||||||||||||||||||
Loss allowance as of 31 December 2018 | Ps. | 35,187 | Ps. | 73,461 | Ps. | 148,595 | Ps. | 257,243 | |||||||||||
Transfers: | |||||||||||||||||||
Transfer from stage 1 to stage 2 | (7,581) | 7,581 | - | - | |||||||||||||||
Transfer from stage 1 to stage 3 | (1,087) | - | 1,087 | - | |||||||||||||||
Transfer from stage 2 to stage 3 | - | (21,066) | 21,066 | - | |||||||||||||||
Transfer from stage 3 to stage 2 | - | 8,414 | (8,414) | - | |||||||||||||||
Transfer from stage 2 to stage 1 | 18,662 | (18,662) | - | - | |||||||||||||||
Transfer from stage 3 to stage 1 | 3,760 | - | (3,760) | - | |||||||||||||||
Net remeasurement of loss allowance (2) | (13,088) | 28,156 | 79,887 | 94,955 | |||||||||||||||
New financial assets originated or purchased | 5,905 | 290 | 661 | 6,856 | |||||||||||||||
Financial assets that have been derecognized | 1,689 | (2,726) | (6,421) | (7,458) | |||||||||||||||
Unwind of discount (1) | - | - | 4,356 | 4,356 | |||||||||||||||
FX and other movements | 1,868 | 9,530 | (5,576) | 5,822 | |||||||||||||||
Write-offs | (388) | (105) | (54,041) | (54,534) | |||||||||||||||
Loss allowance as of September 30, 2019 | Ps. | 44,927 | Ps. | 84,873 | Ps. | 177,440 | Ps. | 307,240 | |||||||||||
- The unwind of discount on Stage 3 financial assets is reported within "interest income" so that interest income is recognized on the amortized cost (after deducting the ECL allowance)
- This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies from the opening to the closing balance, the following table shows impact by stage:
Stage 2 | Stage 3 | ||||||
Stage 1 | Lifetime ECL | Lifetime ECL | |||||
12-month | not credit- | credit- | |||||
ECL | impaired | impaired | Total | ||||
Ps. | (1,600) Ps. | (560) Ps. | 1,566 Ps. | (594) |
28
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
Microcredit loan portfolio
Stage 1 | Stage 2 | Stage 3 | |||||||
Lifetime | Lifetime | ||||||||
12-month | ECL not | Total | |||||||
ECL credit- | |||||||||
ECL | credit- | ||||||||
impaired | |||||||||
impaired | |||||||||
Loss allowance as of 31 December 2018 | Ps. | 23,348 | Ps. | 11,962 | Ps. | 52,867 | Ps. | 88,177 | |
Transfers: | |||||||||
Transfer from stage 1 to stage 2 | (6,895) | 6,895 | - | - | |||||
Transfer from stage 1 to stage 3 | (2,478) | - | 2,478 | - | |||||
Transfer from stage 2 to stage 3 | - | (18,041) | 18,041 | - | |||||
Transfer from stage 3 to stage 2 | - | 1,866 | (1,866) | - | |||||
Transfer from stage 2 to stage 1 | 4,295 | (4,295) | - | - | |||||
Transfer from stage 3 to stage 1 | 668 | - | (668) | - | |||||
Net remeasurement of loss allowance (2) | (1,442) | 13,212 | 16,040 | 27,810 | |||||
New financial assets originated or purchased | 8,620 | 365 | 3 | 8,988 | |||||
Financial assets that have been derecognized | (1,798) | (177) | (89) | (2,064) | |||||
Unwind of discount (1) | - | - | 7,618 | 7,618 | |||||
FX and other movements | - | - | - | - | |||||
Write-offs | (99) | (59) | (41,209) | (41,367) | |||||
Loss allowance as of September 30, 2019 | Ps. | 24,219 | Ps. | 11,728 | Ps. | 53,215 | Ps. | 89,162 | |
- The unwind of discount on Stage 3 financial assets is reported within "interest income" so that interest income is recognized on the amortized cost (after deducting the ECL allowance)
- This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies from the opening to the closing balance, the following table shows impact by stage:
Stage 1 | 12- | Stage 2 | Stage 3 | Total | ||||
month ECL | Lifetime ECL | Lifetime ECL | ||||||
not credit- | credit-impaired | |||||||
impaired | ||||||||
Ps. | 353 | Ps. | (108) | Ps. | (6) | Ps. | 239 |
Financial lease loan portfolio
Stage 1 | Stage 2 | Stage 3 | |||||||
Lifetime | |||||||||
ECL not | Lifetime | ||||||||
12-month | credit- | ECL credit- | |||||||
ECL | impaired | impaired | Total | ||||||
Loss allowance as of 31 December 2018 | Ps. | 72,221 | Ps. | 30,434 | Ps. | 368,352 | Ps. | 471,007 | |
Transfers: | |||||||||
Transfer from stage 1 to stage 2 | (4,226) | 4,226 | - | - | |||||
Transfer from stage 1 to stage 3 | (9,489) | - | 9,489 | - | |||||
Transfer from stage 2 to stage 3 | - | (7,584) | 7,584 | - | |||||
Transfer from stage 3 to stage 2 | - | 4,361 | (4,361) | - | |||||
Transfer from stage 2 to stage 1 | 7,698 | (7,698) | - | - | |||||
Transfer from stage 3 to stage 1 | 5,606 | - | (5,606) | - | |||||
Net remeasurement of loss allowance (2) | (20,869) | 7,357 | 78,140 | 64,628 | |||||
New financial assets originated or purchased | 15,488 | 1,936 | 14,956 | 32,380 | |||||
Financial assets that have been derecognized | (3,641) | (870) | (7,915) | (12,426) | |||||
Unwind of discount (1) | - | - | 21,384 | 21,384 | |||||
FX and other movements | 911 | 571 | (1,354) | 128 | |||||
Write-offs | (27) | (71) | (86,122) | (86,220) | |||||
Loss allowance as of September 30, 2019 | Ps. | 63,672 | Ps. | 32,662 | Ps. | 394,547 | Ps. | 490,881 | |
29
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
- The unwind of discount on Stage 3 financial assets is reported within "interest income" so that interest income is recognized on the amortized cost (after deducting the ECL allowance)
- This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies from the opening to the closing balance, the following table shows impact by stage:
Stage 2 | Stage 3 | ||||||
Lifetime ECL | Lifetime ECL | ||||||
Stage 1 | not credit- | credit- | |||||
12-month ECL | impaired | impaired | Total | ||||
Ps. | (1,813) Ps. | 1,152 | Ps. | 309 | Ps. | (352) |
On August 6, 2019, An Arbitration Tribunal of the Chamber of Commerce of Bogotá, declared the nullity of the Concession Contract N° 001 of 2010, its amendments and other contractual agreements, entered into by and between the former Instituto Nacional de Concesiones - INCO (now ANI) and Concesionaria Ruta del Sol S.A.S (CRDS) for the construction of Project Ruta del Sol 2.
As a result, the Arbitration Tribunal established an amount of TWO HUNDRED ELEVEN THOUSAND TWO HUNDRED SEVENTY-THREE MILLION PESOS (Ps. 211,273), as the value that ANI shall recognize CRDS for the benefit of its third-party good faith creditors. This amount, added to the two payments received by the creditor banks in December 2017 and January 2019 for a total of Ps. 1.42 trillion pesos, result in a liquidation value of at least Ps. 1.63 trillion pesos for the Concession Contract N° 001 of 2010, for the construction of Project Ruta del Sol 2.
Episol, the banking subsisidiaries of Grupo Aval and other parties to these proceeding timely filed appeals for annulment of the award that must be resolved by the Consejo de Estado (Colombia's Supreme Court on for administrative matters)
Investments in debt securities at FVOCI
Stage 1 | Stage 2 | Stage 3 | |||||||
Lifetime | |||||||||
12-month | ECL not | Lifetime | |||||||
ECL | credit- | ECL credit- | |||||||
impaired | impaired | Total | |||||||
Loss allowance as of 31 December 2018 | Ps. | 20,757 | Ps. | 31,980 | Ps. | 46,280 | Ps. | 99,017 | |
Transfers: | |||||||||
Transfer from stage 1 to stage 2 | - | - | - | - | |||||
Net remeasurement of loss allowance (2) | (3,479) | (3,565) | (55) | (7,099) | |||||
New financial assets originated or purchased | 18,737 | - | - | 18,737 | |||||
Financial assets that have been derecognized | (3,385) | (17,990) | (45,602) | (66,977) | |||||
Unwind of discount (1) | - | - | - | - | |||||
FX and other movements | (1,039) | (807) | (623) | (2,469) | |||||
Loss allowance as of September 30, 2019 | Ps. | 31,591 | Ps. | 9,618 | Ps. | - | Ps. | 41,209 | |
- The unwind of discount on Stage 3 financial assets is reported within "interest income" so that interest income is recognized on the amortized cost (after deducting the ECL allowance)
- This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies from the opening to the closing balance, the following table shows impact by stage:
Stage 1 | 12- | Stage 2 | Stage 3 | Total | ||||
month ECL | Lifetime ECL | Lifetime ECL | ||||||
not credit- | credit-impaired | |||||||
impaired | ||||||||
Ps. | (2,174) | Ps. | - | Ps. | - | Ps. | (2,174) |
Investments in debt securities at amortized cost
Stage 1 | Stage 2 | Stage 3 | Total |
30
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
Lifetime | |||||||||
ECL not | Lifetime | ||||||||
12-month | credit- | ECL credit- | |||||||
ECL | impaired | impaired | |||||||
Loss allowance as of 31 December 2018 | Ps. | 71 | Ps. | - | Ps. | - | Ps. | 71 | |
Transfers: | |||||||||
Transfer from stage 1 to stage 2 | - | - | - | - | |||||
Net remeasurement of loss allowance (2) | 176 | - | - | 176 | |||||
New financial assets originated or purchased | 435 | - | - | 435 | |||||
Financial assets that have been derecognized | (28) | - | - | (28) | |||||
Unwind of discount (1) | - | - | - | - | |||||
FX and other movements | (52) | - | - | (52) | |||||
Loss allowance as of September 30, 2019 | Ps. | 602 | Ps. | - | Ps. | - | Ps. | 602 | |
- The unwind of discount on Stage 3 financial assets is reported within "interest income" so that interest income is recognized on the amortized cost (after deducting the ECL allowance)
- This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies from the opening to the closing balance, the following table shows impact by stage:
Stage 1 | 12- | Stage 2 | Stage 3 | Lifetime | Total | |||||||||||||||||||
month ECL | Lifetime ECL not | ECL credit- | ||||||||||||||||||||||
credit-impaired | impaired | |||||||||||||||||||||||
Ps. | 146 | Ps. | - | Ps. | - | Ps. | 146 | |||||||||||||||||
Other accounts receivable | ||||||||||||||||||||||||
Stage 1 | Stage 2 | Stage 3 | ||||||||||||||||||||||
Lifetime | ||||||||||||||||||||||||
ECL not | Lifetime | |||||||||||||||||||||||
12-month | credit- | ECL credit- | Simplified | |||||||||||||||||||||
ECL | impaired | impaired | Approach | Total | ||||||||||||||||||||
Loss allowance as of 31 December 2018 | Ps. | 19,700 | Ps. | 11,561 | Ps. | 66,327 | Ps. | 159,303 | Ps. 256,891 | |||||||||||||||
Transfers stages | (19,176) | (754) | 19,930 | - | - | |||||||||||||||||||
Net remeasurement of loss allowance | 2,739 | (1,204) | 22,481 | 21,254 | 45,270 | |||||||||||||||||||
New financial assets originated or purchased | - | - | - | - | - | |||||||||||||||||||
Financial assets that have been derecognized | - | - | - | - | - | |||||||||||||||||||
Unwind of discount (1) | - | - | - | - | - | |||||||||||||||||||
FX and other movements | 367 | - | - | 795 | 1,162 | |||||||||||||||||||
Approach change | 8,996 | (1,421) | (10,170) | 2,595 | - | |||||||||||||||||||
Write-offs | (1,579) | (534) | (7,118) | (6,191) | (15,422) | |||||||||||||||||||
Loss allowance as of September 30, 2019 | Ps. | 11,047 | Ps. | 7,648 | Ps. | 91,450 | Ps. | 177,756 | 287,901 | |||||||||||||||
- The unwind of discount on Stage 3 financial assets is reported within "interest income" so that interest income is recognized on the amortized cost (after deducting the ECL allowance)
31
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
Loan commitments and financial guarantee contracts
Stage 1 | Stage 2 | Stage 3 | ||||||
Lifetime | Lifetime | |||||||
12-month | ECL not | Total | ||||||
ECL credit- | ||||||||
ECL | credit- | |||||||
impaired | ||||||||
impaired | ||||||||
Loss allowance as of 31 December 2018 | Ps. | 40,715 | Ps. | 14,358 | Ps. | 4,355 | Ps. | 59,428 |
Transfers: | ||||||||
Transfer from Stage 1 to Stage 2 | (619) | 619 | - | - | ||||
Transfer from Stage 1 to Stage 3 | (223) | - | 223 | - | ||||
Transfer from Stage 2 to Stage 3 | - | (172) | 172 | - | ||||
Transfer from Stage 3 to Stage 2 | - | 42 | (42) | - | ||||
Transfer from Stage 2 to Stage 1 | 8,320 | (8,320) | - | - | ||||
Transfer from Stage 3 to Stage 1 | 3,542 | - | (3,542) | - | ||||
Net remeasurement of loss allowance | (28,204) | (3,844) | (587) | (32,635) | ||||
New loan commitments and financial guarantees issued | 10,003 | 1,044 | 67 | 11,114 | ||||
FX and other movements | 1,021 | 1 | 8 | 1,030 | ||||
Loss allowance as of September 30, 2019 | Ps. | 34,555 | Ps. | 3,728 | Ps. | 654 | Ps. | 38,937 |
g) Credit Commitments
Following is the detail of the guarantees, letters of credit and credit commitments on non-used credit lines as of September 30, 2019 and December 31, 2018:
Credit lines commitments not used
September 30, 2019
Notional amount
December 31, 2018
Notional amount
Guarantees | Ps. | 3,329,461 | Ps. | 3,446,601 |
Unused letters of credit | 1,202,018 | 1,186,691 | ||
Unused limits of overdrafts | 77,807 | 306,740 | ||
Unused credit card limits | 23,674,667 | 20,816,061 | ||
Other | 4,799,265 | 5,169,588 | ||
Total | Ps. | 33,083,218 | Ps. | 30,925,681 |
Following is the detail of the credit commitments by type of currency:
September 30, 2019 | December 31, 2018 | |||
Colombian Pesos | Ps. | 15,160,806 | Ps. | 14,918,915 |
U.S. dollars | 14,482,766 | 12,885,921 | ||
Euro | 3,222,871 | 2,892,670 | ||
Other | 216,775 | 228,175 | ||
Total | Ps. | 33,083,218 | Ps. | 30,925,681 |
32
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
NOTE 5 - HEDGE ACCOUNTING
In accordance with its risk management policies, Grupo Aval uses hedge accounting to manage foreign exchange risk relating to investments in foreign operations and in forecasted transactions of its subsidiary Promigas, as follows:
Hedges of net investment in foreign operations
Banco de Bogotá and Banco de Occidente are exposed to foreign exchange risk relating to their investments in foreign subsidiaries, whose functional currencies are the US dollar.
The purpose of hedge accounting is to mitigate and offset any adverse changes resulting from the fluctuation in exchange rate of the Colombian Peso and the functional currency of such investments. The impacts of those movements are reflected in the cumulative translation adjustment in other comprehensive income of the consolidated financial statements.
To cover this risk, Grupo Aval hedges its exposure through foreign currency financial liabilities expressed in U.S. dollars and forward contracts for the sale of U.S. dollars.
Changes in the fluctuation of the Colombian peso against the U.S. dollar are as follows:
Date | Value of USD 1 | Nine-month |
variation in pesos | ||
September 30, 2019 | 3,477.45 | 227.70 |
December 31, 2018 | 3,249.75 | 277.57 |
September 30, 2018 | 2,972.18 | (11.82) |
According to information described above, the following table shows movements of OCI gross of taxes, related to hedges of net investment in foreign operations:
Translation | Exchange | Exchange | ||||||
Detail of investment | adjustment | difference of | difference | Net OCI | ||||
of the | financial | in forward | account | |||||
investments | liabilities | contracts | ||||||
Leasing Bogotá Panamá | Ps. | 984,240 | Ps. | (470,678) | Ps. | (513,189) | Ps. | 373 |
Other subsidiaries and branches Banco de Bogotá | 31,330 | - | (31,457) | (127) | ||||
Occidental Bank Barbados | 7,197 | (7,197) | - | - | ||||
Banco de Occidente Panamá | 9,210 | (9,210) | - | - | ||||
Sociedad Portuaria El Cayao S.A. E.S.P. | 4,736 | (4,736) | - | - | ||||
Gases del Pacífico S.A.C. | 408 | (408) | - | - | ||||
Gas Natural de Lima y Callao S.A.C. - Calidda | 11,919 | (11,919) | - | - | ||||
Total | Ps. | 1,049,040 | Ps. | (504,148) | Ps. | (544,646) | Ps. | 246 |
33
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
According to information described above, the following table contains details of hedging operations carried out to cover foreign denominated equity investments. The analysis is presented gross of taxes:
September 30, 2019
THOUSANDS OF USD | Ps. millions | |||||||||||
Amount of | Cumulative | |||||||||||
hedge by | Amount of | Exchange | Exchange | |||||||||
translation | ||||||||||||
Investment | financial | hedge by | difference of | difference in | Net OCI | |||||||
Detail of investment | adjustment | |||||||||||
amount | liabilities in | forward | financial | forward | account | |||||||
of the | ||||||||||||
foreign | contracts | liabilities (1) | contracts | |||||||||
investments | ||||||||||||
currency | ||||||||||||
Leasing Bogotá Panamá | 4,324,048 | (2,067,100) | (2,244,198) | Ps. | 5,113,621 | Ps. | (2,065,883) | Ps. | (3,183,020) | Ps. | (135,282) | |
Other subsidiaries and branches Banco de Bogotá (2) | 137,871 | - | (137,446) | 157,308 | - | (154,855) | 2,453 | |||||
Occidental Bank Barbados | 30,415 | (30,415) | - | 31,803 | (31,803) | - | - | |||||
Banco de Occidente (Panamá) | 38,023 | (38,023) | - | 44,787 | (44,787) | - | - | |||||
Sociedad Portuaria El Cayao S.A. E.S.P. | 21,214 | (21,214) | - | 14,808 | (14,808) | - | - | |||||
Gases del Pacífico S.A.C. | 2,500 | (2,500) | - | 2,802 | (2,802) | - | - | |||||
Gas Natural de Lima y Callao S.A.C. - Calidda | 51,218 | (51,218) | - | 19,915 | (19,915) | - | - | |||||
Total | 4,605,289 | (2,210,470) | (2,381,644) | Ps. | 5,385,044 | Ps. | (2,179,998) | Ps. | (3,337,875) | Ps. | (132,829) | |
December 31, 2018
THOUSANDS OF USD | Ps. millions | ||||||||||||
Amount of | Cumulative | ||||||||||||
hedge by | Amount of | Exchange | Exchange | ||||||||||
translation | |||||||||||||
Investment | financial | hedge by | difference of | difference in | Net OCI | ||||||||
Detail of investment | adjustment | ||||||||||||
amount | liabilities in | forward | financial | forward | account | ||||||||
of the | |||||||||||||
foreign | contracts | liabilities (1) | contracts | ||||||||||
investments | |||||||||||||
currency | |||||||||||||
Leasing Bogotá Panamá | 3,964,051 | (2,067,100) | (1,896,348) | Ps. | 4,129,381 | Ps. | (1,595,205) | Ps. | (2,669,831) | Ps. | (135,655) | ||
Other subsidiaries and branches Banco de Bogotá (2) | 126,380 | - | (121,116) | 125,978 | - | (123,398) | 2,580 | ||||||
Occidental Bank Barbados | 23,971 | (23,971) | - | 24,606 | (24,606) | - | - | ||||||
Banco de Occidente (Panamá) | 23,439 | (23,439) | - | 35,577 | (35,577) | - | - | ||||||
Sociedad Portuaria El Cayao S.A. E.S.P. | 31,214 | (31,214) | - | 10,072 | (10,072) | - | - | ||||||
Gases del Pacífico S.A.C. | 4,000 | (4,000) | - | 2,394 | (2,394) | - | - | ||||||
Gas Natural de Lima y Callao S.A.C. - Calidda | 31,649 | (19,336) | - | 7,996 | (7,996) | - | - | ||||||
Total | 4,204,704 | (2,169,060) | (2,017,464) | Ps. | 4,336,004 | Ps. | (1,675,850) | Ps. | (2,793,229) | Ps. | (133,075) | ||
- Includes exchange difference hedged
- Includes Banco de Bogotá Panamá, Banco Bogotá Finance, Ficentro and contributions of foreign branches in Miami, New York and Nassau.
34
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
a) Hedging of foreign exchange
Banco de Bogotá designated financial liabilities as hedging instruments on December 21, 2015 these included an intragroup liability amounting to US$ 500 million that Banco de Bogotá had as a hedging instrument of its investment in Leasing Bogotá Panamá. This operation was eliminated in the consolidation process of Grupo Aval and was excluded of the foreign investment hedge accounting. Starting May 1st and up to November 2nd, 2016 Grupo Aval designated financial assets in foreign debt securities amounting to US$ 500 million as cash flow hedge, the foreign exchange differences of this intra-group liability were not eliminated in the consolidation process and recorded in Other Comprehensive Income in the amount of Ps. 73,708. This value would be realized in the future as income only when the investment in Leasing Bogotá Panamá is sold. On November 2nd, 2016 Banco de Bogotá cancelled the intragroup liability amounting to US$ 500 million which was replaced in the foreign investment hedge accounting with other obligations in foreign currency with third parties.
- Hedging of forecasted transactions
In the ordinary course of its operations Promigas S.A. and its subsidiaries receive income in U.S. Dollars derived from the transportation of gas in their gas pipelines. Promigas and its subsidiaries hedge the exchange risk arising in future transactions of highly probable gas transportation income, entered into forward contracts for the sale of U.S. dollars with financial entities different from the ones consolidated into Grupo Aval.
- Testing of hedge effectiveness
Grupo Aval considers hedging as highly effective if at the beginning and in subsequent periods, the hedging is highly effective at offsetting changes in fair value or in cash flows attributable to the risk hedged during the period for which the hedging has been designated. The hedging is considered as such if the effectiveness of the hedging is in a range between 80% and 125%. Such effectiveness is assessed by Grupo Aval's entities at least quarterly and at the end of each accounting period.
According to this, each hedging was effective at September 30, 2019 and December 31, 2018.
NOTE 6 - TANGIBLE ASSETS
Property, plant and equipment | September 30, 2019 | December 31, 2018 | |||
Properties, plant and equipment for own use | Ps. | 5,786,357 | Ps. | 5,663,743 | |
Right-of-use assets (1) | 2,175,998 | - | |||
Investment properties | 937,702 | 836,324 | |||
Biological assets | 102,812 | 84,206 | |||
Properties, plant and equipment given in operating lease | 7,465 | 4,210 | |||
Total | Ps. | 9,010,334 | Ps. | 6,588,483 | |
- The Group has adopted IFRS 16 from January 1, 2019 (See Note 2.)
35
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
NOTE 7 - GOODWILL
The following is the roll-forward of goodwill balances during the period ended September 30, 2019 and December 31, 2018:
September 30, | December 31, | |||
2019 | 2018 | |||
Balance at the beginning of the period | Ps. | 7,318,594 | Ps. | 6,901,056 |
Foreign exchange adjustment | 357,755 | 417,538 | ||
Balance at the end of the period | Ps. | 7,676,349 | Ps. | 7,318,594 |
NOTE 8 - CONCESSIONS
The following are the balances for Grupo Aval for concession contracts for the nine-months periods ended September 30,
2019 and September 30, 2018:
Gas and energy | Infrastructure | Total | ||||||||||
Cost | ||||||||||||
At December 31, 2017 | Ps. | 2,546,056 | Ps. | 1,495,628 | Ps. | 4,041,684 | ||||||
Impact of the adoption of IFRS 15 | - | 569,994 | 569,994 | |||||||||
At January 1, 2018 | Ps. | 2,546,056 | Ps. | 2,065,622 | Ps. | 4,611,678 | ||||||
Additions | 301,020 | 1,237,696 | 1,538,716 | |||||||||
Reclassification to PPE | (4,954) | - | (4,954) | |||||||||
Withdrawals / Sales | (880) | (21,353) | (22,233) | |||||||||
Foreign exchange adjustment | (740) | - | (740) | |||||||||
At September 30, 2018 | Ps. | 2,840,502 | Ps. | 3,281,965 | Ps. | 6,122,467 | ||||||
Accumulated Amortization | ||||||||||||
At December 31, 2017 | Ps. | (369,893) | Ps. | (557,624) | Ps. | (927,517) | ||||||
Amortization of the period | (94,025) | (119,873) | (213,898) | |||||||||
Reclassification to PPE | (9) | - | (9) | |||||||||
Withdrawals / sales | 102 | - | 102 | |||||||||
Foreign exchange adjustment | (129) | - | (129) | |||||||||
At September 30, 2018 | Ps. | (463,954) | Ps. | (677,497) | Ps. | (1,141,451) | ||||||
Total Intangible Assets | ||||||||||||
At December 31, 2017 | Ps. | 2,176,163 | Ps. | 938,004 | Ps. | 3,114,167 | ||||||
Impact of the adoption of IFRS 15 | - | 569,994 | 569,994 | |||||||||
At January 1, 2018 | Ps. | 2,176,163 | Ps. | 1,507,998 | Ps. | 3,684,161 | ||||||
Cost | 294,446 | 1,216,343 | 1,510,789 | |||||||||
Amortization | (94,061) | (119,873) | (213,934) | |||||||||
At September 30, 2018 | Ps. | 2,376,548 | Ps. | 2,604,468 | Ps. | 4,981,016 | ||||||
Gas and energy | Infrastructure | Total | ||||||||||
Cost | ||||||||||||
At December 31, 2018 | Ps. | 3,033,014 | Ps. | 3,732,759 | Ps. | 6,765,773 | ||||||
Additions | 494,409 | 1,160,909 | 1,655,318 | |||||||||
Reclassification to PPE | 255 | - | 255 | |||||||||
Withdrawals / Sales | (3,059) | (408) | (3,467) | |||||||||
Foreign exchange adjustment | 38,211 | - | 38,211 | |||||||||
At September 30, 2019 | Ps. | 3,562,830 | Ps. | 4,893,260 | Ps. | 8,456,090 | ||||||
36
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
Gas and energy | Infrastructure | Total | |||||||
Accumulated Amortization | |||||||||
At December 31, 2018 | Ps. | (501,737) | Ps. | (749,555) | Ps. | (1,251,292) | |||
Amortization of the period | (101,277) | (94,731) | (196,008) | ||||||
Reclassification to PPE | - | - | - | ||||||
Withdrawals / sales | 2,931 | (21,884) | (18,953) | ||||||
Foreign exchange adjustment | (2,219) | - | (2,219) | ||||||
At September 30, 2019 | Ps. | (602,302) | Ps. | (866,170) | Ps. | (1,468,472) | |||
Impairment losses | |||||||||
At December 31, 2018 | Ps. | - | Ps. | - | Ps. | - | |||
Impairment charge | - | (2,007) | (2,007) | ||||||
At September 30, 2019 | Ps. | - | Ps. | (2,007) | Ps. | (2,007) | |||
Total Intangible Assets | |||||||||
At December 31, 2018 | Ps. | 2,531,277 | Ps. | 2,983,204 | Ps. | 5,514,481 | |||
Cost | 529,816 | 1,160,501 | 1,690,317 | ||||||
Amortization | (100,565) | (116,615) | (217,180) | ||||||
Impairment losses | - | (2,007) | (2,007) | ||||||
At September 30, 2019 | Ps. | 2,960,528 | Ps. | 4,025,083 | Ps. | 6,985,611 | |||
NOTE 9 - INCOME TAX
The current income tax expense and the deferred income tax expense are both recognized based on the best management´s estimate for the interim period.
The effective tax rate of the consolidated Grupo Aval, with respect to the continuous operations for the three-month period ended September 30, 2019 was 25.19%, and for the three-month period ended September 30, 2018 was 34,07%.
The effective tax rate with respect to continuous operations for the nine-month period ended September 30, 2019 was 29.0%, and for the nine-month period ended September 30, 2018 was 32.1%.
The 8.88% decrease in the effective tax rate for the third quarter of 2019, compared to the same period of the previous year and the 3.10% decrease for the nine-month period ended September 30, 2019 compared to the same period of the previous year, were mainly caused by the following factors:
- The nominal tax rate decreased by 4% for companies responsible for income tax in Colombia, which are not classified as financial entities, from 37% in 2018 to 33% in 2019, in accordance with Law 1943 of 2018; this effect is mainly driven by the consolidation of Corficolombiana's subsidiaries.
- On August 2019, Banco de Occidente recorded a recovery of deferred tax of Ps. 61,416, due to the update of the fiscal cost of the assets which were subject to fiscal consolidation, in the tax normalization return filed following the provisions of Law 1943 of 2018.
- On September 2019, Banco Popular recorded a recovery of deferred tax of Ps. 30,303, due to the update of the fiscal cost of the assets which were subject to fiscal consolidation, in the tax normalization return filed following the provisions of Law 1943 of 2018.
In addition to the above, the variation of the accumulated effective rate observed for the nine months period being compared is lower than the variation for the quarter being compared, because during the year 2018 Banco de Occidente
37
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
received a CREE tax refund of Ps. 50,860, corresponding to the 2013 and 2014 fiscal years, based on judgment C-10/18.
On October 29, 2019, the Constitutional Court of Colombia determined as unconstitutional the tax surcharge applicable to financial entities. The immediate effect of this resolution resulted in a decrease of the tax rate to determine the current tax provision from 37% to 33%. However, for deferred taxes purposes it was concluded that these should be determined using the same tax rates as those enacted as of September 30, 2019, since tax rates to be in force subsequent to 2019 are expected to be readjusted back at December 31, 2019 if a new law that modifies such rates is approved.
Based on the above, it is expected that the year end consolidated financial statements will include an adjustment for the reversal of the income tax provision registered up to September, which had been calculated at the rate of the rent, surcharge declared unenforceable.
NOTE 10 - EMPLOYEE BENEFITS
The detail of the balance of liabilities for employee benefits as of September 30, 2019 and December 31, 2018 is as follows:
September 30, 2019 | December 31, 2018 | |||
Short term | 629,707 | 481,320 | ||
Post-employment | 546,890 | 541,226 | ||
Long term (1) | 179,800 | 242,335 | ||
Total | Ps. | 1,356,397 | Ps. | 1,264,881 |
- The variation includes the effect of a change in along-term institutional benefit plan at Banco de Bogotá, which went from being a defined benefit plan to a defined contribution plan, through which the bank makes monthly contributions into a fund created for each employee, resulting in an impact of Ps. 73,752.
NOTE 11 - PROVISIONS
Below are the balances for legal provisions and other provisions during the periods ended on September 30, 2019 and December 31, 2018:
Concepts | September 30, 2019 | December 31, 2018 | ||
Legal Provisions | Ps. | 135,249 | Ps. | 125,929 |
Other provisions | 601,154 | 569,359 | ||
Total | Ps. | 736,403 | Ps. | 695,288 |
38
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
NOTE 12 - OTHER LIABILITIES
Accounts payable and other liabilities comprised the following for the periods ended on September 30, 2019 and December 31, 2018:
OTHERS | September 30, | December 31, | |||||||
2019 | 2018 | ||||||||
Suppliers and services payable | Ps. | 1,621,607 | Ps. | 1,846,831 | |||||
Dividends payable (1) | 1,165,082 | 535,311 | |||||||
Income received for third parties (2) | 857,218 | 453,450 | |||||||
Cashier checks | 637,088 | 690,195 | |||||||
Non-financial liabilities | 520,795 | 478,833 | |||||||
Resources for third parties anchoring | 514,588 | 535,960 | |||||||
Collection on behalf of third parties (3) | 489,947 | 1,514,309 | |||||||
Withholdings taxes and labor contributions | 381,637 | 427,782 | |||||||
Commissions and fees | 375,088 | 430,279 | |||||||
Collection service | 283,308 | 314,785 | |||||||
Transactions ACH and ATH (4) | 181,632 | 605,657 | |||||||
Customer loyalty programs | 178,610 | 154,979 | |||||||
Affiliate establishments | 171,610 | 335,078 | |||||||
Anticipated income | 27,256 | 34,605 | |||||||
Cash Surplus | 64,644 | 167,309 | |||||||
Checks drawn and not paid | 53,514 | 48,864 | |||||||
Financial transactions tax | 49,516 | 45,905 | |||||||
Tax levies | 49,079 | 71,691 | |||||||
Canceled accounts | 27,735 | 26,987 | |||||||
Insurance payables | 23,092 | 48,505 | |||||||
Promissory buyers | 17,963 | 18,371 | |||||||
Other liabilities | 300,177 | 222,267 | |||||||
Total | Ps. | 7,991,186 | Ps. | 9,007,953 | |||||
OTHERS | September 30, | December 31, | |||||||
2019 | 2018 | ||||||||
Liabilities to be canceled within twelve months | 5,664,420 | 6,970,611 | |||||||
Liabilities to be canceled after twelve months | 2,326,766 | 2,037,342 | |||||||
Total | Ps. | 7,991,186 | Ps. | 9,007,953 | |||||
- The increase of Ps. 629,771 corresponds to dividends payable that were approved at the shareholders meetings of the different entities of the Group held in March 2019.
- The increase of Ps. 390,514 corresponds to the concessions for the concepts of funding of land costs, networks, environmental issues and toll collection.
- The decrease of Ps. 1,024,362 correspond to collections made in December 2018 for payment of withholding tax the source of outstanding payments to the tax authority.
- The decrease of Ps. 424,025 corresponds to the compensation of electronic ACH and ATH transactions for payment and transfer concepts.
39
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
NOTE 13 - EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT
Declared dividends
The dividends are declared and paid to shareholders based on unconsolidated net income under Colombian IFRS for the immediately preceding period:
September 30, 2019 | |||
Profits of the immediately preceding | |||
period determined in the separate | Ps. | 2,887,749 | Ps. |
financial statements of Grupo Aval. | |||
Release of Occasional Reserves | 6,265,450 | ||
available to the Assembly | |||
Total available to the Assembly | Ps. | 9,153,199 | Ps. |
60 pesos per share payable in twelve | |||
Cash dividends declared | installments of 5 pesos per share, from | ||
April 2019 to March 2020 | |||
Total shares outstanding | 22,281,017,159 | ||
Total dividends decreed for |
December 31, 2018
2,001,178
5,333,761
7,334,939
48 pesos per share payable in twelve installments of 4 pesos per share, from April 2018 to March 2019
22,281,017,159
controlling interests
1,336,861
1,069,489
Total Occasional Reserve available to
the Assembly
7,816,338
6,265,450
Equity transactions
As of September 30, 2019, some transactions were presented created changes in the interests of Grupo Aval and its subsidiaries have on the following investments:
The Board of Directors of Proyectos de Infraestructura - PISA S.A. authorized the purchase of 290,061,750 minority shares equivalent to 50.50% of Concesiones CCFC S.A.S., for a value of Ps. 67,097 million, with which PISA S.A. increase its ownership from 49.50% to 100% of CCFC S.A.S.
During Corficolombiana´s dividend distribution process, Grupo Aval and its subsidiaries received dividends in shares, unlike some minority shareholders who chose to receive the dividend payment in cash, generating a dilution effect at a consolidated level for Grupo Aval, which resulted in a modification of its participation going from 38.25% to 38.63%.
40
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
NOTE 14 - COMMITMENTS AND CONTINGENCIES
Capital expenses commitments
As of September 30, 2019, and December 31, 2018, Grupo Aval and its subsidiaries had contractual disbursement commitments of capital expenditures for Ps. 412,751 and Ps. 127,367, respectively.
Contingencies
As of September 30, 2019, and December 31, 2018, Grupo Aval and its subsidiaries attended administrative and legal proceedings as defendant; the claims of the proceedings were assessed based on analyses and opinion-s of responsible lawyers. The following legal contingencies were determined:
Labor Proceedings
As of September 30, 2019, and December 31, 2018, labor complaints had been recognized for Ps. 84,452 and Ps. 80,113 respectively. Historically, many of these proceedings have been resolved in favor of Grupo Aval and its subsidiaries.
Civil Proceedings
As of September 30, 2019, and December 31, 2018, the result of the assessment of the claims its of legal proceedings for civil suits, not including those with remote probability, reached an amount of Ps. 747,072 and Ps. 391,310 respectively.
Administrative, Tax Proceedings and Other Proceedings
Claims derived from administrative and judicial processes include those of fiscal responsibility over the concession contracts, tax proceedings and other, filed by national and local tax authorities. These authorities may establish, in some cases, sanctions in which Grupo Aval and its subsidiaries affiliates may incur as a result of: (i) the performance of their duty as a withholder or collector of national and local taxes, and/or (ii) the obligation to pay a higher tax amount in their condition of taxpayers. As of September 30, 2019, and December 31, 2018, the amount of the claims amounted to Ps. 158,469 and Ps. 241,092 respectively.
NOTE 15 - NET INCOME FROM COMMISSIONS AND FEE
Below is a detail of the income and expenses from contracts with customers for:
Net income from commissions and fees:
For the three-month periods ended | For the nine-month periods ended | |||||||||
September 30 | September 30 | |||||||||
Income from commissions and fees | 2019 | 2018 | 2019 | 2018 | ||||||
Commissions on banking services | Ps | 753,060 Ps | 661,498 | Ps | 2,184,353 Ps | 1,989,450 | ||||
Fees on credit cards | 337,846 | 294,102 | 967,720 | 855,357 | ||||||
Pension and severance fund management | 279,631 | 244,106 | 836,209 | 732,855 | ||||||
Trust activities | 87,126 | 77,251 | 252,190 | 231,503 | ||||||
Storage services | 39,825 | 38,905 | 120,910 | 115,242 | ||||||
Commissions on drafts, checks and | 12,771 | 12,098 | 37,539 | 36,649 | ||||||
checkbooks | ||||||||||
Office network services | 6,287 | 5,979 | 18,447 | 24,926 |
41
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
For the three-month periods ended | For the nine-month periods ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
Other commissions | 2,645 | 2,121 | 7,658 | 7,724 | |||||||||||||
Total | Ps. | 1,519,191 | Ps. | 1,336,060 | Ps. | 4,425,026 | Ps. | 3,993,706 | |||||||||
For the three-month periods ended | For the nine-month periods ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
Commissions and fees expenses | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Banking services | Ps | (80,092) | Ps | (70,904) | Ps | (225,225) | Ps | (228,334) | |||||||||
Affiliations to pension funds | (26,921) | (18,451) | (71,173) | (55,944) | |||||||||||||
Information processing services of operators | (4,249) | (4,940) | (13,466) | (17,890) | |||||||||||||
Offices network services | (2,716) | (3,015) | (9,923) | (19,470) | |||||||||||||
Administration and intermediation services | (1,051) | (894) | (3,006) | (2,586) | |||||||||||||
Collection Service of contributions to | (38) | (1,619) | (1,320) | (5,453) | |||||||||||||
financial entities | |||||||||||||||||
Banking expenses | (190) | (177) | (518) | (522) | |||||||||||||
Others | (48,742) | (42,296) | (139,009) | (120,493) | |||||||||||||
Total | (163,999) | (142,296) | (463,640) | (450,692) | |||||||||||||
Net income from commissions and fees | Ps. | 1,355,192 | Ps. | 1,193,764 | Ps. | 3,961,386 | Ps. | 3,543,014 | |||||||||
Net income from sale of goods and services:
Net income from sale of goods and
services:
Income from goods and services from non-financial sector (1)
Others operating income
Total income
Cost of sales of companies from non- financial sector
General and administrative expenses Personnel expenses Amortization
Commissions and fees expenses Depreciation
Bonus payments
Allowance for impairment of loans and receivables
Donations expenses Depreciation right of use assets Labor severances
Total costs for goods and services Net, income from non-financial sector
For the three-month periods ended | For the nine-month periods ended | ||||||||
September 30 | September 30 | ||||||||
2019 | 2018 | 2019 | 2018 | ||||||
Ps | 2,283,969 | Ps | 2,435,262 | Ps | 6,098,073 | Ps | 5,147,252 | ||
96,987 | 29,895 | 284,248 | 149,720 | ||||||
Ps. | 2,380,956 | Ps. | 2,465,157 | Ps. | 6,382,321 | Ps. | 5,296,972 | ||
Ps | (1,342,339) | Ps | (1,118,438) | Ps | (3,318,812) | Ps | (2,721,999) | ||
(134,246) | (130,210) | (424,002) | (405,946) | ||||||
(137,115) | (124,955) | (410,263) | (366,950) | ||||||
(48,042) | (77,235) | (209,495) | (226,403) | ||||||
(8,141) | (3,178) | (22,973) | (12,647) | ||||||
(18,565) | (23,684) | (72,244) | (69,896) | ||||||
(8,985) | (6,667) | (28,375) | (26,067) | ||||||
(3,375) | (4,419) | (27,116) | (18,457) | ||||||
(2,965) | (3,050) | (8,893) | (9,430) | ||||||
(15,134) | - | (22,168) | - | ||||||
(556) | (1,017) | (2,198) | (2,035) | ||||||
Ps. | (1,719,463) | Ps. | (1,492,853) | Ps. | (4,546,539) | Ps. | (3,859,830) | ||
Ps. | 661,493 | Ps. | 972,304 | Ps. | 1,835,782 | Ps. | 1,437,142 | ||
- The increase corresponding to the nine months is mainly due to the progress of work in the Promigas concessions for Ps. 497,861, Concesionaría vial del Pacifico for Ps. 243,893 and Concecol for Ps. 238,006.
42
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
NOTE 16 - NET TRADING INCOME
Net trading income includes income from debt and equity securities, cross currency and bond derivatives:
For the three-month periods ended | For the nine-month periods ended | |||||||||||||
September 30 | September 30 | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||
Trading investment income (1) | ||||||||||||||
Fixed income securities | Ps. | 48,321 | Ps. | 24,424 | Ps. | 203,942 | Ps. | 73,979 | ||||||
Equities | 104,697 | 20,112 | 284,616 | 47,982 | ||||||||||
Total trading investment income | Ps. | 153,018 | Ps. | 44,536 | Ps. | 488,558 | Ps. | 121,961 | ||||||
Derivatives income | ||||||||||||||
Net income (loss) on financial | 250,091 | 24,885 | 199,254 | 12,095 | ||||||||||
derivatives (2) | ||||||||||||||
Other trading income (3) | 78,208 | 40,045 | 110,255 | 129,732 | ||||||||||
Total derivatives income | Ps. | 328,299 | Ps. | 64,930 | Ps. | 309,509 | Ps. | 141,827 | ||||||
Total net trading income | Ps. | 481,317 | Ps. | 109,466 | Ps. | 798,067 | Ps. | 263,788 | ||||||
- Includes net trading income from investment securities held for trading, wich reflects the interest from investment in debt securities, gains/losses frommark-to-market valuation from investment in equity and debt securities and net income from trading activities.
- Includes net trading income from trading derivatives, which reflects the gains/losses frommark-to-market valuation on trading derivatives.
- Includes gains/losses from: (i) Net changes in the valuation of hedging derivatives frommark-to-market valuations from unhedged, (ii) the ineffective portion of the hedge, and (iii) Transfers of due hedging derivatives from OCI to the statement of income.
NOTE 17 - OTHER INCOME AND EXPENSE
Below is the detail of the others income and expense:
For the three-month periods ended September 30 | For the nine-month periods ended September 30 |
Other Income
Net gain on sale of debt and equity securities Share of profit of equity accounted investees, net of tax Dividends
Gain on the sale of non-current assets held for sale
Net gain on asset valuation Foreign exchange gains (losses), net Other income
Total other income
2019 | 2018 | 2019 | 2018 | |||||||
Ps. | 118,854 | Ps. | 5,935 | Ps. | 189,918 | Ps. | (13,960) | |||
64,897 | 53,816 | 174,445 | 142,361 | |||||||
3,381 | 5,107 | 82,982 | 61,242 | |||||||
5,601 | 8,290 | 18,183 | 14,462 | |||||||
4,754 | 2,210 | 1,978 | 10,022 | |||||||
(207,828) | 106,036 | (25,174) | 371,312 | |||||||
115,119 | 116,156 | 314,428 | 272,432 | |||||||
Ps. | 104,778 | Ps. | 297,550 | Ps. | 756,760 | Ps. | 857,871 | |||
43
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
For the three-month periods ended | For the nine-month periods ended September 30 | ||||||||
September 30 | |||||||||
Other expense | 2019 | 2018 | 2019 | 2018 | |||||
Personnel expenses | Ps. | (1,061,648) | Ps. | (946,795) | Ps. | (3,023,925) | Ps. | (2,831,389) | |
Taxes and fees (1) | (286,048) | (183,425) | (690,911) | (538,979) | |||||
Affiliation contributions and | (177,432) | (129,564) | (482,771) | (376,397) | |||||
transfers | |||||||||
Consultancy, audit and other fees | (166,648) | (134,330) | (464,425) | (391,459) | |||||
Depreciation and amortization | (156,914) | (137,758) | (452,071) | (398,116) | |||||
Maintenance and repairs | (117,849) | (89,748) | (328,411) | (265,034) | |||||
Insurance | (96,378) | (94,463) | (282,997) | (279,704) | |||||
Marketing | (90,832) | (78,067) | (226,880) | (220,065) | |||||
Depreciation right of use assets (2) | (74,936) | - | (219,618) | - | |||||
Warehouse services | (72,233) | (67,079) | (206,594) | (198,246) | |||||
Transportation services | (44,342) | (44,565) | (133,196) | (134,360) | |||||
Leases (rent) | (46,226) | (112,443) | (128,044) | (345,838) | |||||
Cleaning and security services | (35,028) | (31,153) | (100,693) | (93,785) | |||||
Outsourcing services | (37,721) | (30,377) | (97,771) | (93,324) | |||||
Supplies and stationary | (23,731) | (19,297) | (71,155) | (57,412) | |||||
Electronic data processing | (16,752) | (20,490) | (60,901) | (58,507) | |||||
Travel expenses | (14,145) | (12,137) | (40,910) | (37,841) | |||||
Adaptation and installation | (13,488) | (11,068) | (36,847) | (37,135) | |||||
Loss from sale of non-current | (1,308) | (769) | (3,571) | (2,781) | |||||
assets held for sale | |||||||||
Other expense | (92,376) | (87,859) | (269,955) | (299,368) | |||||
Total other expense | Ps. | (2,626,035) | Ps. | (2,231,387) | Ps. | (7,321,646) | Ps. | (6,659,740) | |
- Taxes and fees include the fiscal consolidation carried out in Banco de Occidente for Ps. 45,161 and Banco Popular for Ps. 13,856 recognized in the months of August and September 2019, respectively.
- The Group has adopted IFRS 16 from January 1, 2019 (See Note 2.)
44
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
NOTE 18 - ANALYSIS OF OPERATING SEGMENTS
Following is the detail of the reportable financial information summarized for each segment as of September 30, 2019 and December 31, 2018:
Statement of Financial Position
September 30, 2019
Banco de | Banco de | Banco | Banco | Corficolombiana | (1)Other | Eliminations | Total | ||||||||||
Bogotá S.A. | Occidente S.A. | Popular S.A. | AV Villas S.A. | S.A. | Segments | ||||||||||||
Assets | |||||||||||||||||
Trading assets | Ps. | 4,081,503 | Ps. | 2,675,062 | Ps. | 314,383 | Ps. | 323,733 | Ps. | 1,950,387 | Ps. | 3,173 | Ps. | (49,860) | Ps. | 9,298,381 | |
Investment securities | 14,783,092 | 4,384,248 | 2,088,835 | 1,525,936 | 2,498,948 | - | (730,502) | 24,550,557 | |||||||||
Hedging derivatives assets | 27,226 | - | - | - | 735 | - | (169) | 27,792 | |||||||||
Investments in associates and joint ventures | 4,630,302 | 1,390,278 | 468,591 | 3,017 | 759,075 | - | (6,260,997) | 990,266 | |||||||||
Loans, net | 114,078,927 | 29,250,518 | 18,955,382 | 11,671,359 | 2,132,057 | - | (1,658,521) | 174,429,722 | |||||||||
Other Assets | 35,660,282 | 3,478,881 | 2,377,954 | 1,494,791 | 23,145,346 | 4,485,757 | (6,092,390) | 64,550,621 | |||||||||
Total Assets | Ps. | 173,261,332 | Ps. | 41,178,987 | Ps. | 24,205,145 | Ps. | 15,018,836 | Ps. | 30,486,548 | Ps. | 4,488,930 | Ps. | (14,792,439) | Ps. | 273,847,339 | |
Liabilities | |||||||||||||||||
Customer Deposits | Ps. | 116,874,990 | Ps. | 27,763,805 | Ps. | 17,355,933 | Ps. | 11,347,540 | Ps. | 4,188,987 | Ps. | - | Ps. | (3,483,290) | Ps. | 174,047,965 | |
Financial Obligations | 29,516,720 | 7,032,304 | 2,665,018 | 1,420,133 | 11,748,750 | 4,557,979 | (3,453,975) | 53,486,929 | |||||||||
Other Liabilities | 5,556,128 | 1,596,745 | 1,134,667 | 536,908 | 5,020,790 | 828,559 | (724,192) | 13,949,605 | |||||||||
Total Liabilities | Ps. | 151,947,838 | Ps. | 36,392,854 | Ps. | 21,155,618 | Ps. | 13,304,581 | Ps. | 20,958,527 | Ps. | 5,386,538 | Ps. | (7,661,457) | Ps. | 241,484,499 | |
- Includes Grupo Aval Holding, Grupo Aval Limited, Grupo Aval International Limited and ATH Negocio Conjunto.
December 31, 2018
Banco de | Banco de | Banco | Banco | Corficolombiana | (1)Other | Eliminations | Total | ||||||||||
Bogotá S.A. | Occidente S.A. | Popular S.A. | AV Villas S.A. | S.A. | Segments | ||||||||||||
Assets | |||||||||||||||||
Trading assets | Ps. | 3,086,060 | Ps. | 1,670,934 | Ps. | 235,283 | Ps. | 302,226 | Ps. | 1,987,205 | Ps. | 212 | Ps. | (77,608) | Ps. | 7,204,312 | |
Investment securities | 11,238,754 | 5,070,964 | 2,900,778 | 1,225,551 | 3,189,297 | - | (595,185) | 23,030,159 | |||||||||
Hedging derivatives assets | 32,981 | - | - | - | 43 | - | (2,886) | 30,138 | |||||||||
Investments in associates and joint ventures | 4,157,015 | 1,247,935 | 396,289 | 2,347 | 759,222 | - | (5,580,065) | 982,743 | |||||||||
Loans, net | 111,018,238 | 26,996,654 | 18,287,166 | 11,027,826 | 2,575,561 | - | (1,219,791) | 168,685,654 | |||||||||
Other Assets | 33,769,462 | 3,935,123 | 2,829,152 | 1,649,531 | 17,729,308 | 3,924,117 | (4,094,546) | 59,742,147 | |||||||||
Total Assets | Ps. | 163,302,510 | Ps. | 38,921,610 | Ps. | 24,648,668 | Ps. | 14,207,481 | Ps. | 26,240,636 | Ps. | 3,924,329 | Ps. | (11,570,081) | Ps. | 259,675,153 | |
Liabilities | |||||||||||||||||
Customer Deposits | Ps. | 108,404,522 | Ps. | 25,592,232 | Ps. | 17,571,388 | Ps. | 11,425,400 | Ps. | 3,805,028 | Ps. | - | Ps. | (2,439,119) | Ps. | 164,359,451 | |
Financial Obligations | 28,560,065 | 6,881,717 | 3,139,013 | 647,872 | 9,673,342 | 4,376,021 | (2,066,040) | 51,211,990 | |||||||||
Other Liabilities | 6,670,148 | 1,941,504 | 1,047,333 | 514,029 | 4,643,578 | 443,591 | (710,819) | 14,549,364 | |||||||||
Total Liabilities | Ps. | 143,634,735 | Ps. | 34,415,453 | Ps. | 21,757,734 | Ps. | 12,587,301 | Ps. | 18,121,948 | Ps. | 4,819,612 | Ps. | (5,215,978) | Ps. | 230,120,805 | |
- Includes Grupo Aval Holding, Grupo Aval Limited, Grupo Aval International Limited and ATH Negocio Conjunto.
45
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
Statement of Income for the quarter ended September 30, 2019
Banco de | Banco de | Banco | Banco | Corficolombiana | (1)Other | Eliminations | Total | |||||||||
Bogotá S.A. | Occidente S.A. | Popular S.A. | AV Villas S.A. | S.A. | Segments | |||||||||||
External Income | ||||||||||||||||
Interest income | Ps. | 3,105,531 | Ps. | 766,437 | Ps. | 569,514 | Ps. | 364,224 | Ps. | 136,293 | Ps. | 102 | Ps. | - | Ps. | 4,942,101 |
Income from commissions | 1,228,442 | 108,702 | 67,165 | 71,058 | 17,703 | 26,121 | - | 1,519,191 | ||||||||
and fees | ||||||||||||||||
Income from sales of goods | 25,491 | 15,520 | 103 | (1,616) | 2,341,458 | - | - | 2,380,956 | ||||||||
and services | ||||||||||||||||
Share of profit of equity | 3,639 | 1,471 | 1,907 | 1,530 | 56,350 | - | - | 64,897 | ||||||||
accounted investees, net of tax | ||||||||||||||||
Dividends | 59 | - | 516 | - | 2,806 | - | - | 3,381 | ||||||||
Other Income | 423,065 | 75,150 | 49,687 | 9,932 | 16,953 | (1,728) | - | 573,059 | ||||||||
Ps. | 4,786,227 | Ps. | 967,280 | Ps. | 688,892 | Ps. | 445,128 | Ps. | 2,571,563 | Ps. | 24,495 | Ps. | - | Ps. | 9,483,585 | |
Intersegment Income | ||||||||||||||||
Interest income | Ps. | 26,875 | Ps. | 3,531 | Ps. | 3,886 | Ps. | 902 | Ps. | 13,574 | Ps. | 18 | Ps. | (48,786) | Ps. | - |
Income from commissions | 1,240 | 2,260 | 569 | 4,744 | 495 | 10,752 | (20,060) | - | ||||||||
and fees | ||||||||||||||||
Income from sales of goods | 571 | 42,364 | - | 1,616 | 1,580 | - | (46,131) | - | ||||||||
and services | ||||||||||||||||
Share of profit of equity | 118,867 | 61,227 | 16,553 | (1,566) | 445 | - | (195,526) | - | ||||||||
accounted investees, net of tax | ||||||||||||||||
Dividends | - | - | - | - | - | - | - | - | ||||||||
Other Income | 5,150 | 700 | 46 | 409 | 90 | 27,036 | (33,431) | - | ||||||||
152,703 | 110,082 | 21,054 | 6,105 | 16,184 | 37,806 | (343,934) | - | |||||||||
Total income | Ps. | 4,938,930 | Ps. | 1,077,362 | Ps. | 709,946 | Ps. | 451,233 | Ps. | 2,587,747 | Ps. | 62,301 | Ps. | (343,934) | Ps. | 9,483,585 |
Expenses | ||||||||||||||||
Interest expense | Ps. | (1,241,917) | Ps. | (314,084) | Ps. | (218,750) | Ps. | (105,508) | Ps. | (272,086) | Ps. | (61,350) | Ps. | 100,901 | Ps. | (2,112,794) |
Impairment loss on loan and | (852,822) | (184,436) | (81,284) | (68,329) | (4,418) | - | 2,007 | (1,189,282) | ||||||||
other accounts receivable | ||||||||||||||||
Depreciations and | (160,790) | (29,799) | (20,404) | (16,839) | (1,892) | (2,978) | 852 | (231,850) | ||||||||
amortizations | ||||||||||||||||
Expenses from commissions | (102,597) | (21,459) | (17,388) | (34,676) | (2,427) | (944) | 15,492 | (163,999) | ||||||||
and fees | ||||||||||||||||
Costs and expenses of sales | (54,209) | (78,868) | (137) | - | (1,570,311) | 1,909 | (17,847) | (1,719,463) | ||||||||
goods and services | ||||||||||||||||
Administrative Expenses | (865,722) | (212,357) | (166,308) | (101,746) | (27,972) | (63,566) | 143,751 | (1,293,920) | ||||||||
Other expense | (722,466) | (82,390) | (103,358) | (47,778) | (26,347) | 79,604 | (97,012) | (999,747) | ||||||||
Income tax expense | (237,475) | 14,600 | (4,689) | (24,682) | (179,198) | (15,049) | (25) | (446,518) | ||||||||
Total Expenses | (4,237,998) | (908,793) | (612,318) | (399,558) | (2,084,651) | (62,374) | 148,119 | (8,157,573) | ||||||||
Net income | Ps. | 700,932 | Ps. | 168,569 | Ps. | 97,628 | Ps. | 51,675 | Ps. | 503,096 | Ps. | (73) | Ps. | (195,815) | Ps. | 1,326,012 |
46
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
Banco de | Banco de | Banco | Banco | Corficolombiana | (1)Other | Eliminations | Total | |||||||||
Bogotá S.A. | Occidente S.A. | Popular S.A. | AV Villas S.A. | S.A. | Segments | |||||||||||
Revenue from | ||||||||||||||||
contracts with | ||||||||||||||||
customers | Ps. | 1,255,446 Ps. | 168,007 | Ps. | 67,735 | Ps. | 75,801 Ps. | 2,259,343 Ps. | 104,887 | Ps. | (31,072) Ps. | 3,900,147 | ||||
Timing of revenue | ||||||||||||||||
recognition | ||||||||||||||||
At a point in time | 49,861 | 8,196 | 6,385 | 21,617 | 48,789 | 104,736 | (83,551) | 156,033 | ||||||||
Over time | 1,205,585 | 159,811 | 61,350 | 54,184 | 2,210,554 | 151 | 52,479 | 3,744,114 |
- Includes Grupo Aval Holding, Grupo Aval Limited, Grupo Aval International Limited and ATH Negocio Conjunto
- Income from contracts with customer for commission and fee, see note 15
Statement of Income for the nine-months periods ended on September 30, 2019
Banco de | Banco de | Banco | Banco | Corficolombiana | (1)Other | Eliminations | Total | |||||||||
Bogotá S.A. | Occidente S.A. | Popular S.A. | AV Villas S.A. | S.A. | Segments | |||||||||||
External Income | ||||||||||||||||
Interest income | Ps. | 9,064,621 | Ps. | 2,320,982 | Ps. | 1,736,047 | Ps. | 1,093,354 | Ps. | 281,756 | Ps. | 299 | Ps. | - | Ps. | 14,497,059 |
Income from commissions | 3,594,614 | 314,797 | 196,246 | 207,059 | 55,697 | 56,613 | - | 4,425,026 | ||||||||
and fees | ||||||||||||||||
Income from sales of goods | 83,589 | 49,470 | 871 | (3,841) | 6,252,232 | - | - | 6,382,321 | ||||||||
and services (2) | ||||||||||||||||
Share of profit of equity | 8,846 | 3,909 | 4,704 | 3,968 | 153,018 | - | - | 174,445 | ||||||||
accounted investees, net of tax | ||||||||||||||||
Dividends | 3,314 | 279 | 1,155 | 1,795 | 76,439 | - | - | 82,982 | ||||||||
Other Income | 929,147 | 195,012 | 79,375 | 46,924 | 209,300 | 16 | - | 1,459,774 | ||||||||
Ps. | 13,684,131 | Ps. | 2,884,449 | Ps. | 2,018,398 | Ps. | 1,349,259 | Ps. | 7,028,442 | Ps. | 56,928 | Ps. | - | Ps. | 27,021,607 | |
Intersegment Income | ||||||||||||||||
Interest income | Ps. | 68,802 | Ps. | 9,650 | Ps. | 9,267 | Ps. | 2,370 | Ps. | 112,606 | Ps. | 68 | Ps. | (202,763) | Ps. | - |
Income from commissions | 3,905 | 6,358 | 2,337 | 14,426 | 634 | 57,284 | (84,944) | - | ||||||||
and fees | ||||||||||||||||
Income from sales of goods | 1,297 | 116,903 | - | 3,841 | 4,131 | - | (126,172) | - | ||||||||
and services | ||||||||||||||||
Share of profit of equity | 389,548 | 200,696 | 54,918 | (4,156) | 1,284 | - | (642,290) | - | ||||||||
accounted investees, net of tax | ||||||||||||||||
Dividends | 5,288 | 2,022 | 2,925 | 2,053 | 101 | - | (12,389) | - | ||||||||
Other Income | 54,599 | 4,507 | 141 | 1,133 | (3,389) | 58,056 | (115,047) | - | ||||||||
523,439 | 340,136 | 69,588 | 19,667 | 115,367 | 115,408 | (1,183,605) | - | |||||||||
Total income | Ps. | 14,207,570 | Ps. | 3,224,585 | Ps. | 2,087,986 | Ps. | 1,368,926 | Ps. | 7,143,809 | Ps. | 172,336 | Ps. | (1,183,605) | Ps. | 27,021,607 |
Expenses | ||||||||||||||||
Interest expense | Ps. | (3,608,604) | Ps. | (899,707) | Ps. | (659,196) | Ps. | (310,649) | Ps. | (670,063) | Ps. | (177,720) | Ps. | 219,008 | Ps. | (6,106,931) |
Impairment loss on loan and | (2,120,047) | (635,850) | (243,291) | (227,928) | (10,591) | - | 74,317 | (3,163,390) | ||||||||
other accounts receivable | ||||||||||||||||
Depreciations and | (468,062) | (85,560) | (57,867) | (49,065) | (5,916) | (7,591) | 2,372 | (671,689) | ||||||||
amortizations | ||||||||||||||||
47
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
Banco de | Banco de | Banco | Banco | Corficolombiana | (1)Other | Eliminations | Total | |||||||||||||||||||||||||||
Bogotá S.A. | Occidente S.A. | Popular S.A. | AV Villas S.A. | S.A. | Segments | |||||||||||||||||||||||||||||
Expenses from commissions | (283,875) | (60,904) | (49,052) | (101,512) | (8,426) | (3,402) | 43,531 | (463,640) | ||||||||||||||||||||||||||
and fees | ||||||||||||||||||||||||||||||||||
Costs and expenses of sales | (171,521) | (225,412) | (413) | - | (4,157,398) | 5,695 | 2,510 | (4,546,539) | ||||||||||||||||||||||||||
goods and services | ||||||||||||||||||||||||||||||||||
Administrative Expenses | (2,399,813) | (539,449) | (453,173) | (290,430) | (79,597) | (184,086) | 416,824 | (3,529,724) | ||||||||||||||||||||||||||
Other expense | (2,032,956) | (240,207) | (284,930) | (149,218) | (115,463) | 279,453 | (246,546) | (2,789,867) | ||||||||||||||||||||||||||
Income tax expense | (822,273) | (60,384) | (75,803) | (79,068) | (581,292) | (47,170) | (1,502) | (1,667,492) | ||||||||||||||||||||||||||
Total Expenses | (11,907,151) | (2,747,473) | (1,823,725) | (1,207,870) | (5,628,746) | (134,821) | 510,514 | (22,939,272) | ||||||||||||||||||||||||||
Net income | Ps. | 2,300,419 | Ps. | 477,112 | Ps. | 264,261 | Ps. | 161,056 | Ps. | 1,515,063 | Ps. | 37,515 | Ps. | (673,091) | Ps. | 4,082,335 | ||||||||||||||||||
Banco de | Banco de | Banco | Banco | Corficolombiana | (1)Other | Eliminations | Total | |||||||||||||||||||||||||||
Bogotá S.A. | Occidente S.A. | Popular S.A. | AV Villas S.A. | S.A. | Segments | |||||||||||||||||||||||||||||
Revenue from contracts with | ||||||||||||||||||||||||||||||||||
customers (2) | Ps. | 3,682,784 | Ps. | 484,376 | Ps. | 198,599 | Ps. | 221,484 | Ps. | 6,021,782 | Ps. | 326,089 | Ps. | (127,767) | Ps. | 10,807,347 | ||||||||||||||||||
Timing of revenue recognition | ||||||||||||||||||||||||||||||||||
At a point in time | 150,852 | 24,307 | 17,312 | 61,694 | 173,776 | 325,681 | (281,422) | 472,200 | ||||||||||||||||||||||||||
Over time | 3,531,932 | 460,069 | 181,287 | 159,790 | 5,848,006 | 408 | 153,655 | 10,335,147 |
- Includes Grupo Aval Holding, Grupo Aval Limited, Grupo Aval International Limited and ATH Negocio Conjunto
- Income from contracts with customer for commission and fee, see note 15
Statement of Income for the quarter ended September 30, 2018
Banco de | Banco de | Banco | Banco | Corficolombiana | (1) Other | Eliminations | Total | |||||||||
Bogotá S.A. | Occidente S.A. | Popular S.A. | AV Villas S.A. | S.A. | Segments | |||||||||||
External Income | ||||||||||||||||
Interest income | Ps. | 2,862,568 | Ps. | 794,953 | Ps. | 545,353 | Ps. | 358,551 | Ps. | 125,639 | Ps. | 53 | Ps. | - | Ps. | 4,687,117 |
Income from commissions | 1,074,468 | 99,265 | 61,615 | 67,975 | 20,795 | 11,942 | - | 1,336,060 | ||||||||
and fees | ||||||||||||||||
Income from sales of goods | 31,183 | 20,173 | 3,401 | - | 2,410,400 | - | - | 2,465,157 | ||||||||
and services | ||||||||||||||||
Share of profit of equity | 2,410 | 1,145 | 1,174 | 926 | 48,161 | - | - | 53,816 | ||||||||
accounted investees, net of tax | ||||||||||||||||
Dividends | 997 | 6 | 281 | 908 | 2,915 | - | - | 5,107 | ||||||||
Other Income | 267,097 | 41,754 | 16,710 | 13,245 | 59,253 | 201 | - | 398,260 | ||||||||
Ps. | 4,238,723 | Ps. | 957,296 | Ps. | 628,534 | Ps. | 441,605 | Ps. | 2,667,163 | Ps. | 12,196 | Ps. | - | Ps. | 8,945,517 | |
Intersegment Income | ||||||||||||||||
Interest income | Ps. | (47,775) | Ps. | (32,210) | Ps. | 7,105 | Ps. | 447 | Ps. | 5,918 | Ps. | 31 | Ps. | 66,484 | Ps. | - |
Income from commissions | 335 | 1,950 | 1,089 | 4,712 | 366 | 26,540 | (34,992) | - | ||||||||
and fees | ||||||||||||||||
Income from sales of goods | 226 | 24,916 | - | - | 1,343 | - | (26,485) | - | ||||||||
and services | ||||||||||||||||
48
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
Banco de | Banco de | Banco | Banco | Corficolombiana | (1) Other | Eliminations | Total | |||||||||||||||||||||||
Bogotá S.A. | Occidente S.A. | Popular S.A. | AV Villas S.A. | S.A. | Segments | |||||||||||||||||||||||||
Share of profit of equity | 193,868 | 28,597 | (1,051) | (1,025) | 371 | - | (220,760) | - | ||||||||||||||||||||||
accounted investees, net of tax | ||||||||||||||||||||||||||||||
Dividends | - | - | - | - | - | - | - | - | ||||||||||||||||||||||
Other Income | 127,687 | 1,254 | 32 | 551 | 2,402 | 13,278 | (145,204) | - | ||||||||||||||||||||||
274,341 | 24,507 | 7,175 | 4,685 | 10,400 | 39,849 | (360,957) | - | |||||||||||||||||||||||
Total income | Ps. | 4,513,064 | Ps. | 981,803 | Ps. | 635,709 | Ps. | 446,290 | Ps. | 2,677,563 | Ps. | 52,045 | Ps. | (360,957) | Ps. | 8,945,517 | ||||||||||||||
Expenses | ||||||||||||||||||||||||||||||
Interest expense | Ps. | (1,079,544) | Ps. | (279,968) | Ps. | (208,896) | Ps. | (93,427) | Ps. | (176,485) | Ps. | (55,229) | Ps. | 46,273 | Ps. | (1,847,276) | ||||||||||||||
Impairment loss on loan and | (661,070) | (233,860) | (52,063) | (67,633) | 721 | - | (87,808) | (1,101,713) | ||||||||||||||||||||||
other accounts receivable | ||||||||||||||||||||||||||||||
Depreciations and | (93,201) | (19,324) | (13,047) | (8,510) | (1,829) | (1,778) | (69) | (137,758) | ||||||||||||||||||||||
amortizations | ||||||||||||||||||||||||||||||
Expenses from commissions | (81,154) | (16,050) | (22,723) | (25,287) | (3,220) | (605) | 6,743 | (142,296) | ||||||||||||||||||||||
and fees | ||||||||||||||||||||||||||||||
Costs and expenses of sales | (60,479) | (61,383) | (3,273) | - | (1,374,755) | 867 | 6,170 | (1,492,853) | ||||||||||||||||||||||
goods and services | ||||||||||||||||||||||||||||||
Administrative Expenses | (762,856) | (165,505) | (134,561) | (105,777) | (31,145) | (49,317) | 139,320 | (1,109,841) | ||||||||||||||||||||||
Other expense | (634,042) | (97,036) | (85,556) | (50,063) | (25,164) | 81,659 | (99,594) | (909,796) | ||||||||||||||||||||||
Income tax expense | (254,781) | (24,965) | (45,027) | (31,486) | (375,440) | (17,958) | (1,169) | (750,826) | ||||||||||||||||||||||
Total Expenses | (3,627,127) | (898,091) | (565,146) | (382,183) | (1,987,317) | (42,361) | 9,866 | (7,492,359) | ||||||||||||||||||||||
Net income | Ps. | 885,937 | Ps. | 83,712 | Ps. | 70,563 | Ps. | 64,107 | Ps. | 690,246 | Ps. | 9,684 | Ps. | (351,091) | Ps. | 1,453,158 | ||||||||||||||
Banco de | Banco de | Banco | Banco | Corficolombiana | (1)Other | Eliminations | Total | |||||||||||||||||||||||
Bogotá S.A. | Occidente S.A. | Popular S.A. | AV Villas S.A. | S.A. | Segments | |||||||||||||||||||||||||
Revenue from contracts with | ||||||||||||||||||||||||||||||
customers | Ps. | 1,106,135 | Ps. | 145,566 | Ps. | 65,459 | Ps. | 72,687 | Ps. | 2,401,949 | Ps. | 109,212 | Ps. | (99,791) | Ps. | 3,801,217 | ||||||||||||||
Timing of revenue recognition | ||||||||||||||||||||||||||||||
At a point in time | 45,595 | 5,438 | 8,295 | 21,276 | 43,000 | 109,097 | (18,130) | 214,571 | ||||||||||||||||||||||
Over time | 1,060,540 | 140,128 | 57,164 | 51,411 | 2,358,949 | 115 | (81,661) | 3,586,646 |
- Includes Grupo Aval Holding, Grupo Aval Limited, Grupo Aval International Limited and ATH Negocio Conjunto
- Income from contracts with customer for commission and fee, see note 15
49
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
Statement of Income for the nine-months periods ended on September 30, 2018
Banco de | Banco de | Banco | Banco | Corficolombiana | (1)Other | Eliminations | Total | |||||||||
Bogotá S.A. | Occidente S.A. | Popular S.A. | AV Villas S.A. | S.A. | Segments | |||||||||||
External Income | ||||||||||||||||
Interest income | Ps. | 8,230,589 | Ps. | 2,338,628 | Ps. | 1,654,208 | Ps. | 1,024,290 | Ps. | 417,176 | Ps. | 130 | Ps. | - | Ps. | 13,665,021 |
Income from commissions | ||||||||||||||||
and fees | 3,207,901 | 296,909 | 182,097 | 195,983 | 58,345 | 52,471 | - | 3,993,706 | ||||||||
Income from sales of goods | ||||||||||||||||
and services | 94,832 | 56,614 | 9,052 | - | 5,136,474 | - | - | 5,296,972 | ||||||||
Share of profit of equity | ||||||||||||||||
accounted investees, net of tax | 4,044 | 2,187 | 2,332 | 2,185 | 131,613 | - | - | 142,361 | ||||||||
Dividends | 3,572 | 279 | 1,567 | 2,306 | 53,518 | - | - | 61,242 | ||||||||
Other Income | 601,388 | 116,699 | 51,123 | 40,773 | 283,084 | 2,201 | - | 1,095,268 | ||||||||
Ps. | 12,142,326 | Ps. | 2,811,316 | Ps. | 1,900,379 | Ps. | 1,265,537 | Ps. | 6,080,210 | Ps. | 54,802 | Ps. | - | Ps. | 24,254,570 | |
Intersegment Income | ||||||||||||||||
Interest income | Ps. | (9,150) | Ps. | (28,222) | Ps. | 7,894 | Ps. | 617 | Ps. | 23,662 | Ps. | 110 | Ps. | 5,089 | Ps. | - |
Income from commissions | ||||||||||||||||
and fees | 1,812 | 7,449 | 5,442 | 15,785 | 1,145 | 60,780 | (92,413) | - | ||||||||
Income from sales of goods | ||||||||||||||||
and services | 492 | 69,020 | - | - | 4,280 | - | (73,792) | - | ||||||||
Share of profit of equity | ||||||||||||||||
accounted investees, net of tax | 327,136 | 86,872 | (2,888) | (2,898) | 738 | - | (408,960) | - | ||||||||
Dividends | 12,898 | 7,834 | 9,355 | 707 | 1,211 | - | (32,005) | - | ||||||||
Other Income | 192,242 | 3,247 | 277 | 1,324 | 2,857 | 31,440 | (231,387) | - | ||||||||
525,430 | 146,200 | 20,080 | 15,535 | 33,893 | 92,330 | (833,468) | - | |||||||||
Total income | Ps. | 12,667,756 | Ps. | 2,957,516 | Ps. | 1,920,459 | Ps. | 1,281,072 | Ps. | 6,114,103 | Ps. | 147,132 | Ps. | (833,468) | Ps. | 24,254,570 |
Expenses | ||||||||||||||||
Interest expense | Ps. | (3,187,780) | Ps. | (854,562) | Ps. | (640,965) | Ps. | (272,623) | Ps. | (579,440) | Ps. | (164,613) | Ps. | 149,800 | Ps. | (5,550,183) |
Impairment loss on loan and | ||||||||||||||||
other accounts receivable | (1,703,774) | (630,380) | (133,626) | (211,957) | (22,690) | - | (87,808) | (2,790,235) | ||||||||
Depreciations and | ||||||||||||||||
amortizations | (268,154) | (57,368) | (36,437) | (24,641) | (5,826) | (5,599) | (91) | (398,116) | ||||||||
Expenses from commissions | ||||||||||||||||
and fees | (269,421) | (52,985) | (67,231) | (76,157) | (9,669) | (1,809) | 26,580 | (450,692) | ||||||||
Costs and expenses of sales | ||||||||||||||||
goods and services | (192,178) | (172,825) | (9,708) | - | (3,517,682) | 4,275 | 28,288 | (3,859,830) | ||||||||
Administrative Expenses | (2,241,111) | (533,027) | (402,707) | (296,655) | (67,264) | (145,334) | 352,213 | (3,333,885) | ||||||||
Other expense | (1,868,805) | (302,420) | (267,799) | (137,581) | (78,235) | 219,462 | (216,834) | (2,652,212) | ||||||||
Income tax expense | (801,363) | (11,532) | (137,146) | (86,528) | (587,131) | (50,385) | (1,573) | (1,675,658) | ||||||||
Total Expenses | (10,532,586) | (2,615,099) | (1,695,619) | (1,106,142) | (4,867,937) | (144,003) | 250,575 | (20,710,811) | ||||||||
Net income | Ps. | 2,135,170 | Ps. | 342,417 | Ps. | 224,840 | Ps. | 174,930 | Ps. | 1,246,166 | Ps. | 3,129 | Ps. | (582,893) | Ps. | 3,543,759 |
50
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
Banco de | Banco de | Banco | Banco | Corficolombiana | (1)Other | Eliminations | Total | |||||||||
Bogotá S.A. | Occidente S.A. | Popular S.A. | AV Villas S.A. | S.A. | Segments | |||||||||||
Revenue from contracts with | ||||||||||||||||
customers (2) | Ps. | 3,304,697 Ps. | 427,954 | Ps. | 194,842 | Ps. | 211,768 | Ps. | 5,050,098 | Ps. | 326,227 | Ps. | (224,908) | Ps. | 9,290,678 | |
Timing of revenue recognition | ||||||||||||||||
At a point in time | 140,561 | 19,282 | 22,545 | 56,420 | 109,194 | 325,842 | (284,040) | 389,804 | ||||||||
Over time | 3,164,136 | 408,672 | 172,297 | 155,348 | 4,940,904 | 385 | 59,132 | 8,900,874 |
- Includes Grupo Aval Holding, Grupo Aval Limited, Grupo Aval International Limited and ATH Negocio Conjunto
- Income from contracts with customer for commission and fee, see note 15
Reconciliation of net income, assets and liabilities of reportable operating segments
Main eliminations of total income, expenses, assets and liabilities between segments with the corresponding consolidated entries at the level of Grupo Aval are:
- Loans with financial obligations of entities mainly fromnon-financial sector.
- Investments in term deposits and outstanding bonds of in other segments.
- Investments in subordinate's elimination and record of non- controlling interests.
- Intercompany leasing's and commissions paid between Grupo Aval's entities.
- Expenses and incomes for commissions.
18.1 Analysis of Revenues by Products and Services
Grupo Aval's revenues are analyzed by products and services, in the statement of income.
51
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
NOTA 19 - TRANSFERS OF FINANCIAL ASSETS
Grupo Aval and its subsidiaries enter into transactions in the normal course of business by which it transfers financial assets to third parties. Depending on the circumstances, these transfers may either result in these financial assets being derecognized or continuing to be recognized in Grupo Aval´s financial statements.
A. Transferred financial assets not qualifying for full derecognition
i. Sale and repurchase agreements
The debt securities of financial investments at fair value through profit or loss that are being used as guarantees in repurchase transactions amounted to Ps. 461,299 as of September 30, 2019 and Ps. 1,139,782 as of December 31, 2018; the financial assets at amortized cost that are being used as guarantees in repurchase transactions amounted to Ps. 947,813 as of September 30,2019 and the debt securities of financial investments at fair value through OCI that are being used as guarantees in repurchase transactions amounted to Ps. 3,737,838 as of September 30, 2019 and Ps. 4,029,816 as of December 31, 2018.
ii. Securities lending
As of September 30, 2019, and as of December 31, 2018, Grupo Aval has not recorded securities lending.
- Transfer of financial assets that are derecognized in their entirety I. Securitizations
As of September 30, 2019, and as of December 31, 2018, Grupo Aval has not transferred financial assets to special purpose vehicles.
NOTE 20 - UNCONSOLIDATED STRUCTURED ENTITIES
The table below shows the total assets of unconsolidated structured entities in which Grupo Aval had an interest at the reporting date and its maximum exposure to loss in relation to those interests:
September 30, 2019 | Securitizations | Grupo Aval´s | Total | |||
managed funds | ||||||
Grupo Aval's interest-assets | ||||||
Investments at fair value through profit or loss | Ps. | 9,594 | Ps. | 3,235,834 | Ps. | 3,245,428 |
Other account receivables | - | 50,070 | 50,070 | |||
Total assets in relation to the Grupo Aval's | ||||||
interests in the unconsolidated structured entities | 9,594 | 3,285,904 | 3,295,498 | |||
Grupo Aval's maximum exposure | Ps. | 9,594 | Ps. | 3,285,904 | Ps. | 3,295,498 |
52
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
NOTE 21 - RELATED PARTIES
Balances as of September 30, 2019 and December 31, 2018, with related parties, are detailed in the following tables:
Assets
Cash and equivalents Financial assets in investments Financial assets in credit operations Accounts receivable
Other assets
Liabilities
Deposits
Accounts payables
Financial obligations
Others liabilities
Assets
Cash and equivalents Financial assets in investments Financial assets in credit operations Accounts receivable
Other assets
September 30, 2019
Individuals | Entity | ||||||||
Individuals | Entities with | ||||||||
with | Key | Entities | |||||||
Associates and | significant | ||||||||
control | management | controlled by | |||||||
joint ventures | influence by | ||||||||
over Grupo | personnel | individuals | |||||||
individuals | |||||||||
Aval | |||||||||
Ps. | - | Ps. | - | Ps. | - | Ps. | - | Ps. | - |
- | - | 1,000,750 | - | - | |||||
4,231 | 8,898 | 1,142,936 | 1,526,405 | 126,686 | |||||
8 | 12 | 130,136 | 5,587 | 312 | |||||
- | - | 9,057 | 2,946 | - | |||||
Ps. | 116,602 | Ps. | 22,413 | Ps. | 78,486 | Ps. | 898,999 | Ps. | 1,306 |
1,051 | 454 | 12,986 | 745,872 | - | |||||
- | - | - | - | - | |||||
- | 2 | 1,902 | 256 | - | |||||
December 31, 2018 | |||||||||
Individuals | Entity | ||||||||
Individuals | Entities with | ||||||||
with | Key | Entities | |||||||
Associates and | significant | ||||||||
control | management | controlled by | |||||||
joint ventures | influence by | ||||||||
over Grupo | personnel | individuals | |||||||
individuals | |||||||||
Aval | |||||||||
Ps. | - | Ps. | - | Ps. | - | Ps. | - | Ps. | - |
- | - | 920,170 | - | - | |||||
2,680 | 17,062 | 1,443,476 | 1,513,218 | 102,958 | |||||
9 | 58 | 8,105 | 3,329 | 17 | |||||
- | - | 20,348 | 5,030 | - |
53
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
December 31, 2018 | ||||||||||||||||||||
Individuals | Entity | |||||||||||||||||||
Individuals | Entities with | |||||||||||||||||||
with | Key | Entities | ||||||||||||||||||
Associates and | significant | |||||||||||||||||||
control | management | controlled by | ||||||||||||||||||
joint ventures | influence by | |||||||||||||||||||
over Grupo | personnel | individuals | ||||||||||||||||||
individuals | ||||||||||||||||||||
Aval | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Deposits | Ps. | 100,199 | Ps. | 21,726 | Ps. | 70,960 | Ps. | 570,558 | Ps. | 23,470 | ||||||||||
Accounts payables | 38 | 686 | 10,114 | 291,328 | 1 | |||||||||||||||
Financial obligations | 1 | 3 | 102 | 7 | - | |||||||||||||||
Others liabilities | - | - | 25,040 | 194 | 3 | |||||||||||||||
For the quarter ended September 30, 2019 | ||||||||||||||||||||
Individuals | Entity | |||||||||||||||||||
Individuals | Entities with | |||||||||||||||||||
with | Key | Entities | ||||||||||||||||||
Associates and | significant | |||||||||||||||||||
control | management | controlled by | ||||||||||||||||||
joint ventures | influence by | |||||||||||||||||||
over Grupo | personnel | individuals | ||||||||||||||||||
individuals | ||||||||||||||||||||
Aval | ||||||||||||||||||||
Interest income | Ps. | 45 | Ps. | 64 | Ps. | 8,044 | Ps. | 22,190 | Ps. | 2,001 | ||||||||||
Fee income and commissions | 2 | 26 | 7,695 | 50,062 | 1 | |||||||||||||||
Leases | - | - | (20) | 69 | - | |||||||||||||||
Other income | 1 | 48 | 74,670 | 1,651 | 265 | |||||||||||||||
Financial expenses | (31) | (411) | (213) | (5,767) | (4) | |||||||||||||||
Fee expenses and commissions | - | (405) | (4,750) | 21,562 | (210) | |||||||||||||||
Operating expenses | - | (2,374) | - | 89 | - | |||||||||||||||
Other expenses | 4 | (664) | (337,158) | (12,042) | (9) |
54
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
For the nine months ended September 30, 2019 | |||||||||||||||
Individuals | Entity | ||||||||||||||
Individuals | Entities with | ||||||||||||||
with | Key | Entities | |||||||||||||
Associates and | significant | ||||||||||||||
control | management | controlled by | |||||||||||||
joint ventures | influence by | ||||||||||||||
over Grupo | personnel | individuals | |||||||||||||
individuals | |||||||||||||||
Aval | |||||||||||||||
Interest income | Ps. | 140 | Ps. | 536 | Ps. | 33,349 | Ps. | 66,826 | Ps. | 5,855 | |||||
Fee income and commissions | 15 | 41 | 25,836 | 85,019 | 4 | ||||||||||
Leases | - | - | - | 241 | - | ||||||||||
Other income | 5 | 147 | 200,118 | 4,371 | 511 | ||||||||||
Financial expenses | (144) | (782) | (882) | (15,026) | (24) | ||||||||||
Fee expenses and commissions | (2) | (1,106) | (15,137) | (1,499) | (300) | ||||||||||
Operating expenses | - | (5,893) | - | (2,098) | - | ||||||||||
Other expenses | (2) | (1,453) | (355,312) | (30,896) | (9) | ||||||||||
For the quarter ended September 30, 2018 | |||||||||||||||
Individuals | Entity | ||||||||||||||
Individuals | Entities with | ||||||||||||||
with | Key | Entities | |||||||||||||
Associates and | significant | ||||||||||||||
control | management | controlled by | |||||||||||||
joint ventures | influence by | ||||||||||||||
over Grupo | personnel | individuals | |||||||||||||
individuals | |||||||||||||||
Aval | |||||||||||||||
Interest income | Ps. | 54 | Ps. | 278 | Ps. | (4,420) | Ps. | 32,163 | Ps. | (3,828) | |||||
Fee income and commissions | 1 | 16 | (3,408) | 16,138 | (1) | ||||||||||
Leases | - | - | (141) | 54 | - | ||||||||||
Other income | - | 35 | 62,804 | 1,430 | - | ||||||||||
Financial expenses | (36) | (266) | 33,524 | (2,270) | 423 | ||||||||||
Fee expenses and commissions | 113 | 833 | (5,239) | (423) | (5) | ||||||||||
Operating expenses | - | (842) | (12) | 522 | - | ||||||||||
Other expenses | 373 | 760 | (8,723) | (5,908) | - | ||||||||||
55
Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
For the nine months ended September 30, 2018 | |||||||||||
Individuals | Entity | ||||||||||
Individuals | Entities with | ||||||||||
with | Key | Entities | |||||||||
Associates and | significant | ||||||||||
control | management | controlled by | |||||||||
joint ventures | influence by | ||||||||||
over Grupo | personnel | individuals | |||||||||
individuals | |||||||||||
Aval | |||||||||||
Interest income | Ps. | 165 Ps. | 664 | Ps. | 29,934 | Ps. | 97,610 | Ps. | 207 | ||
Fee income and commissions | 4 | 45 | 6,048 | 46,766 | - | ||||||
Leases | - | - | 33 | 233 | - | ||||||
Other income | 2 | 173 | 190,745 | 3,618 | - | ||||||
Financial expenses | (170) | (642) | (656) | (13,088) | (17) | ||||||
Fee expenses and commissions | (3) | (903) | (12,512) | (1,370) | (5) | ||||||
Operating expenses | - | (8,058) | (35) | (1,282) | - | ||||||
Other expenses | (11) | (1,556) | (26,828) | (20,207) | - |
Expenses during the current period were recognized with respect to uncollectible or doubtful accounts related to amounts in debt by related parties of Ps. 322,568.
Compensation of Key Management Personnel
The compensation received by the key personnel of the management comprises the following:
Three-month ended in | Nine-months ended in | ||||||||
September 30, | September 30, | September 30, | September 30, | ||||||
2019 | 2018 | 2019 | 2018 | ||||||
Salaries | Ps. | 4,145 | Ps. | 4,579 | Ps. | 13,118 | Ps. | 13,469 | |
Short term benefits for employees | 2,381 | 1,023 | 3,843 | 2,480 | |||||
Total | 6,526 | 5,602 | 16,961 | 15,949 | |||||
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Grupo Aval Acciones y Valores S.A. and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
(Figures in millions of Colombian pesos)
NOTE 22 - SUBSEQUENT EVENTS
As of the date of issuance of the condensed consolidated financial statements, no subsequent events are known that need to be disclosed in the financial statements
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Grupo Aval Acciones y Valores SA published this content on 05 December 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 December 2019 22:40:07 UTC