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

KPMG S.A.S.

Calle 90 No. 19c - 74 Bogotá D.C. - Colombia

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

Dear Shareholders

Grupo Aval Acciones y Valores S.A.:

Introduction

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

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

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

Scope of the review

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

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2

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

Conclusion

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

(Original signed in Spanish) Diana Alexandra Rozo Muñoz

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

Registration 120741-T

Member of KPMG S.A.S.

May 14, 2024

GRUPO AVAL ACCIONES Y VALORES S.A.

Separate statement of financial position (Stated in millions of Colombian pesos)

			March 31st		December 31st
	Note		2024		2023
Assets
Current assets
Cash and cash equivalents	5	Ps.	159,482	Ps.	157,323
Trading securities	6		269		256
Amortized cost investments	7		18,806		18,707
Accounts receivable from related parties	8		760,833		444,964
Taxes paid in advance	8		4,303		5,958
Other accounts receivable	8		20		31
Other non-financial assets			148		103
Total current assets			943,861		627,342
Non-current Assets
Investments in subsidiaries and associates	9	Ps.	18,317,610	Ps.	18,645,247
Accounts receivable from related parties	8		1,037,421		1,031,954
Property and equipment, net	10		2,018		2,404
Deferred tax assets, net	11		296		278
Total non-current Assets			19,357,345		19,679,883
Total assets		Ps.	20,301,206	Ps.	20,307,225
Liabilities and shareholders' equity
Current liabilities
Financial obligations at amortized cost	12	Ps.	20,306	Ps.	20,923
Outstanding bonds at amortized cost	12		245,232		237,172
Accounts payable	14		677,955		363,998
Employee benefits	13		2,682		2,880
Tax liabilities	14		10,780		13,335
Other non-financial liabilities	14		1,214		1,214
Total current liabilities			958,169		639,522
Long-term liabilities
Financial obligations at amortized cost	12	Ps.	1,530,827	Ps.	1,525,800
Outstanding bonds at amortized cost	12		900,000		900,000
Total long-term liabilities			2,430,827		2,425,800
Total liabilities		Ps.	3,388,996	Ps.	3,065,322
Equity
Subscribed and paid capital	15	Ps.	23,743	Ps.	23,743
Additional paid-in capital	15		9,695,243		9,695,243
Retained earnings	15		7,600,229		7,450,394
Net income			119,614		723,038
Other comprehensive income	15		(526,619)		(650,515)
Total shareholders' equity		Ps.	16,912,210	Ps.	17,241,903
Total liabilities and shareholders' equity		Ps.	20,301,206	Ps.	20,307,225

The accompanying notes are an integral part of these condensed separate financial statements

María Lorena Gutiérrez Botero	María Edith González Flórez	Diana Alexandra Rozo Muñoz
President	Certified Public Accountant	Revisor Fiscal of Grupo Aval Acciones y Valores S.A.
	Registration 13083-T	Registration 120741 T
		Member of KPMG S.A.S.
		(See my report of May 14th 2024)

GRUPO AVAL ACCIONES Y VALORES S.A.

Separate income statement

(Stated in millions of Colombian pesos, except earnings per share)

			For the accumulated period
			March 31st		March 31st
	Note		2024		2023
Operating revenue
Equity method income, net	17	Ps.	119,407	Ps.	412,496
Other revenue from ordinary activities	17		107,300		116,610
Total operating revenue		Ps.	226,707	Ps.	529,106
Expenses, net
Administrative expenses	18	Ps.	22,948	Ps.	18,713
Other expenses	18		6		(99)
revenue from exchange rate differences	18		29		(130)
Operating income		Ps.	203,724	Ps.	510,622
Financial expenses	18		73,101		81,532
Earnings before taxes		Ps.
	130,623	Ps.	429,090
Income tax expense	11		11,009		13,150
Net income from continuing operations		Ps.	119,614	Ps.	415,940
Net income		Ps.	119,614	Ps.	415,940
	15
Number of shares outstanding		23,743,475,754		23,743,475,754
Net income per share
	Ps.	5.04	Ps.	17.52
The accompanying notes are an integral part of these condensed separate financial statements

María Lorena Gutiérrez Botero	María Edith González Flórez	Diana Alexandra Rozo Muñoz
President	Certified Public Accountant	Revisor Fiscal of Grupo Aval Acciones y Valores S.A.
	Registration 13083-T	Registration 120741 T
		Member of KPMG S.A.S.
		(See my report of May 14th 2024)

GRUPO AVAL ACCIONES Y VALORES S.A.

Separate Other Comprehensive Income Statement

(Stated in millions of Colombian pesos)

		For the accumulated period
		March 31st		March 31st
		2024		2023
Net income	Ps.	119,614	Ps.	415,940
Other comprehensive income (OCI), net of taxes
Participation in other comprehensive income
reported using the equity method		123,896		325,437
Comprehensive income, net	Ps.	243,510	Ps.	741,377

The accompanying notes are an integral part of these condensed separate financial statements

María Lorena Gutiérrez Botero	María Edith González Flórez	Diana Alexandra Rozo Muñoz
President	Certified Public Accountant	Revisor Fiscal of Grupo Aval Acciones y Valores S.A.
	Registration 13083-T	Registration 120741 T
		Member of KPMG S.A.S.
		(See my report of May 14th 2024)

GRUPO AVAL ACCIONES Y VALORES S.A. Separate Statement of Changes in Equity (Stated in millions of Colombian pesos)

Subscribed and

	Retained earnings (losses)
Legal	Occasional	Retained					Other
Operations with

paid capital

Paid-in Capital

reserve

reserve

earnings

Net Income

comprehensive

Total Equity

shareholders

income

Balance as of December 31st 2022	Ps.	23,743	Ps.	9,695,243	Ps.
Constitution of reserves for future distributions net income 2022
Reserve appropriation
To distribute a cash dividend of $ 3.60 per share per
month from April 2023 to March 2024 including those
two months, over 23.743.475.754 outstanding
shares as of the date of the Shareholder´s meeting.
Application of the equity method
Witholding tax on dividends
Net Income
Balance as of March 31st 2023	Ps.	23,743	Ps.	9,695,243	Ps.
Balance as of December 31st 2023	Ps.	23,743	Ps.	9,695,243	Ps.
Constitution of reserves for future distributions net income 2023
To distribute a cash dividend of $ 2.00 per share per
month from April 2024 to March 2025 including those
two months, over 23.743.475.754 outstanding
shares as of the date of the Shareholder´s meeting.
Application of the equity method
Changes in subsidiaries equity
Witholding tax on dividends
Net Income
Balance as of March 31st 2024	Ps.	23,743	Ps.	9,695,243	Ps.

11,872	Ps.	12,817,186	Ps.	(245,351)	Ps.	(6,644,277)	Ps.	2,541,179	Ps.	(1,237,319)	Ps.	16,962,276
		2,541,179						(2,541,179)				-
		(7,111,764)		467,487		6,644,277						-
		(1,025,718)										(1,025,718)
										325,437		325,437
				14,690								14,690
								415,940				415,940
11,872	Ps.	7,220,883	Ps.	236,826	Ps.	-	Ps.	415,940	Ps.	(911,882)	Ps.	16,692,625
11,872	Ps.	7,220,883	Ps.	217,639	Ps.	-	Ps.	723,038	Ps.	(650,515)	Ps.	17,241,903
		723,038						(723,038)				-
		(569,843)										(569,843)
										123,896		123,896
				(8,387)								(8,387)
				5,027								5,027
								119,614				119,614
11,872	Ps.	7,374,078	Ps.	214,279	Ps.	-	Ps.	119,614	Ps.	(526,619)	Ps.	16,912,210

The accompanying notes are an integral part of these condensed separate financial statements

María Lorena Gutiérrez Botero	María Edith González Flórez	Diana Alexandra Rozo Muñoz
President	Certified Public Accountant	Revisor Fiscal of Grupo Aval Acciones y Valores S.A.
	Registration 13083-T	Registration 120741 T
		Member of KPMG S.A.S.
		(See my report of May 14th 2024)

GRUPO AVAL ACCIONES Y VALORES S.A.

Separate Statement of Cash Flows (Stated in millions of Colombian pesos)

			For the accumulated period
			March 31st	March 31st
	Note		2024		2023
Cash flow from operating activity:
Net Income		Ps.	119,614 Ps.	415,940
Adjustments to reconcile net income with net cash
provided (used) by operating activities
Income tax expense		Ps.	11,009 Ps.	13,150
Depreciation and amortization	10		452		398
Loan Impairment	8		(12)		(121)
Equity method income	17		(119,407)		(412,496)
Changes in operating assets and liabilities:
(Increase) Decrease in trading securities		Ps.	(13) Ps.	570
Increase (Decrease) in receivable interests	8		99		(382)
Decrease in other assets and liabilities, net: prepaid taxes, prepaid expenses,			(12,105)		(16,530)
taxes, accounts payable, employee liabilities, estimated liabilities and provisions
Decrease in interests payable			7,396		1,319
Interest paid on lease agreements (IFRS 16)	18		(67)		(132)
Dividends received by subsidiaries			250,769		98,655
Net cash provided by operating activities		Ps.	257,735 Ps.	100,371
Net cash used in investing activities		Ps.	- Ps.	-
Cash flow from financing activities:
Dividends paid			(255,091)		(1,475)
Payment of lease liabilities	12		(386)		(269)
Net cash used in financing activities		Ps.	(255,477) Ps.	(1,744)
Effect of exchange rate difference on cash			(99)		-
Change in cash and cash equivalents			2,159		98,627
Cash and cash equivalents as of the beginning of the period			157,323		67,439
Cash and cash equivalents as of the end of the period		Ps.	159,482 Ps.	166,066
Additional information:
Payment of Interest		Ps.	65,771 Ps.	80,343

The accompanying notes are an integral part of these condensed separate financial statements

María Lorena Gutiérrez Botero	María Edith González Flórez	Diana Alexandra Rozo Muñoz
President	Certified Public Accountant	Revisor Fiscal of Grupo Aval Acciones y Valores S.A.
	Registration 13083-T	Registration 120741 T
		Member of KPMG S.A.S.
		(See my report of May 14th 2024)

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GRUPO AVAL ACCIONES Y VALORES S.A. Notes to the Separate Financial Statements

(Stated in millions of Colombian pesos, except earnings per share)

1. Reporting Entity
   Grupo Aval Acciones y Valores S.A. (hereinafter referred to as the 'Company' or 'Grupo Aval') is a
   Stock Corporation established by Public Deed number 0043 on January 7, 1994; Its registered office is located at Carrera 13 No. 26A - 47, Bogotá, D.C., Colombia.
   Its corporate purpose is focused on the to buy and to sell of stocks, bonds, and securities of entities belonging to the financial system and other commercial entities. As part of its activities, the Company is authorized to acquire and trade all kinds of marketable securities and securities in general freely circulating in the market; to promote the creation of all kinds of companies related to or complementary to the corporate purpose; to represent natural or legal persons engaged in similar or complementary activities, as well as those previously indicated; to lend or borrow money, with or without interest; to provide as collateral or for management its movable or immovable assets; to issue, endorse, acquire, accept, collect, protest, cancel, or pay bills of exchange, checks, promissory notes, or any other securities titles, either by accepting or providing them as payment, and generally execute or celebrate the exchange contract in all its manifestations, in all their forms, or related, parallel, and/or complementary activities. The total number of employees as at March 31, 2024 and December 31, 2023, was 119.
   The duration of the Company, as established in its bylaws, is until May 24, 2044, but may be dissolved or extended before that term.
   The Law 1870 of 2017 aims to define, supervise, and regulate financial conglomerates to watch over the stability of the financial system. In its Article 3, it defines the scope and responsibility of financial holdings, such as Grupo Aval. This law specifies that these entities will be subject to inspection and supervision by the Financial Superintendent; therefore, all regulatory provisions related to risk management, internal control, information disclosure, conflicts of interest, and corporate governance that they must apply will be applicable.

• Takeover Bid

On December 6, 2022, the Tender Offer made by Esadinco S.A. was accepted, which included the sale of BHIC shares by Banco de Bogotá. On December 14, the selling process concluded, resulting in the sale of 20.9% of BHIC shares. The remaining 4.1% stake was sold by Banco de Bogotá on March 17, 2023.

1. Basis of presentation of separate financial statements and summary of significant accounting policies.
   The condensed separate interim condensed financial information of Grupo Aval Acciones y Valores S.A., have been prepared in accordance with the Accounting and Financial Reporting Standards accepted in Colombia (IFRS adopted by Colombia) and established in Law 1314 of 2009, regulated in the annex of Decree 2420 of 2015, and the other amending decrees issued by the National Government.
   The condensed interim separate financial statements do not include all the information and disclosures required for an annual financial statement, and therefore need to be read in conjunction with the annual separate financial statements as at 31 December 2023. In accordance with IAS 34 Interim Financial Reporting, the accounting policies used for interim periods are the same as those applied in the preparation of the annual financial statements.

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GRUPO AVAL ACCIONES Y VALORES S.A. Notes to the Separate Financial Statements

(Stated in millions of Colombian pesos, except earnings per share)

Grupo Aval Acciones y Valores S.A., presents stability in the recognition of its results in each quarter, as in the different periods disclosed above there is no evidence of seasonality or cyclical effects in its disclosed results.

1. Critical accounting judgments and estimates in the application of accounting policies
   In preparing these interim financial statements, the Company's management makes estimates and assumptions that affect the application of policies, the amounts recognized and the carrying amounts of assets and liabilities, income and expenses.
   Significant judgements made by management apply to the Group's accounting policies and the key sources of estimates were the same as those applied to the separate annual financial statements for the period ended at December 31, 2023.
2. Fair Value Estimation
   The fair value of financial assets and liabilities traded in active markets (such as financial assets in debt and equity securities and actively traded derivatives on stock exchanges or interbank markets) is based on 'dirty' prices provided by an official price provider authorized by the called SFC (Superintendencia Financiera de Colombia). These prices are determined through weighted averages of transactions occurring during the trading day.
   An active market is a market in which transactions for assets or liabilities take place with sufficient frequency and volume to provide continuous price information. A "dirty" price is one includes accrued and pending interest on the security from the issuance date or the last interest payment until the settlement date of the purchase or sale transaction. The fair value of financial assets and liabilities not traded in an active market is determined using valuation techniques established by the price provider or Grupo Aval entities' management. Valuation techniques for non-standardized financial instruments, such as options, currency swaps, and over-the-counter derivatives, include the use of interest rate or currency valuation curves constructed by price providers from market data and extrapolated to the specific conditions of the instrument being valued. Other valuation methods involve discounted cash flow analysis, option pricing models, and commonly used techniques by market participants. These techniques emphasize maximizing the use of market data and minimizing reliance on entity-specific data.
   The Company may use internally developed models for financial instruments that do not have active markets. These models are generally based on methods and valuation techniques that are commonly standardized in the financial sector. Some inputs for these models may not be observable in the market, and therefore, they are estimated based on assumptions.
   The output of a model is always an estimate or approximation of a value that cannot be determined with certainty, and the valuation techniques employed may not fully reflect all factors relevant to the Company's positions. Therefore, valuations are adjusted, where necessary, to allow for additional factors, including country risk, liquidity risks and counterparty risks.
   The fair value hierarchy has the following levels:
3. • Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

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GRUPO AVAL ACCIONES Y VALORES S.A. Notes to the Separate Financial Statements

(Stated in millions of Colombian pesos, except earnings per share)

• Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.
• Level 3: Unobservable inputs for the asset or liability.

The level in the fair value hierarchy within which the fair value measurement is classified in its entirety is determined based on the lowest-level input that is significant for the fair value measurement as a whole. The importance of an input is assessed in relation to the fair value measurement as a whole. Financial instruments quoted in markets that are not considered active but are valued based on quoted market prices, quotes from price providers, or alternative pricing sources supported by observable inputs, are classified in Level 2

If a fair value measurement uses observables inputs that require significant adjustments based on unobservable inputs, it is categorized as a Level 3 measurement. The assessment of the significance of a particular input to the fair value measurement as a whole requires judgment, considering specific factors related to the asset or liability.

The determination of what constitutes "observable" requires significant judgment by the Company. Observable data refers to market data that is already available, regularly distributed or updated by the price provider, reliable and verifiable, without proprietary rights, and provided by independent sources actively participating in the relevant market.

Fair value measurements on a recurring basis

Fair value measurements on a recurring basis are those required or allowed by IFRS accounting standards in the financial statements at the end of each accounting period.

Tradable investments are carried at fair value using the unit value provided by the fund's management company, which reflects the fair value of the underlying assets, incorporating all the risks to which the assets are exposed, in accordance with IFRS 13. The management company, based on observable market data, accounts for the credit risk associated with the asset; therefore, the Company does not analyze or monitor impairment indicators.

The fair value of underlying assets is calculated based on inputs observable by the market, either directly or indirectly, which can be substantially corroborated with observable market data. For this reason, these investments have been classified as Level 2.

The fair value of investments primarily reflects changes in market conditions, primarily due to changes in interest rates and other economic conditions in the country where the investment is held. As at March 31, 2024, and December 31, 2023, the Company believes that there have been no significant losses in the fair value of investments due to impairment of credit risk conditions for these assets.

The following table analyzes, within the fair value hierarchy, the Company's financial assets and liabilities (by class) measured at fair value as at March 31, 2024, and December 31, 2023, on a recurring basis:

					March 31, 2024
		Level 1			Level 2		Level 3		Total
Assets
Amortized cost investments	Ps.	-	Ps.	-	Ps.	18,806	Ps.	18,806
Trading securities at fair value			-		269		-		269
Total recurring fair value assets	Ps.	-	Ps.	269	Ps.	18,806	Ps.	19,075