Grupo Aval Q2 Net Income Surges 43% as Loan Growth Accelerates

Grupo Aval's second-quarter net income jumped 43%, the Bogotá-based bank group reported Wednesday, as double-digit loan growth and lower provision costs pushed the return on equity to its highest level in two years.

Net income attributable to shareholders reached 404 billion pesos ($95 million), up from 282 billion pesos a year ago. Return on average equity rose to 12.8% from8.8%. Total gross loans stood at$259.2 trillion pesos, an 11% increase from the same quarter of 2025.

Net interest margin expanded slightly to 5.2%, helped by a repricing of floating-rate assets after the Colombian central bank's easing cycle. The efficiency ratio improved to 43.5% from 46.5% a year earlier, driven by cost controls and revenue growth.

Provision expenses for the quarter fell 7%, reflecting improved credit quality. The 90-day past-due loan ratio narrowed to 3.3% from 3.7% a year ago. The loan-loss coverage ratio held steady at about 140%.

Executive President Maria Gutierrez Botero attributed the results to “ sustained commercial momentum and disciplined cost control.” The numbers include a comparative boost from the March sale of Multi Financial Group, the U.S.- based parent of Multibank Inc.. For pro forma purposes, the discontinued operation was stripped out to show comparable growth.

JPMorgan analyst Yuri Fernandes asked about net interest margin prospects going forward. Camilo Pérez-Álvarez, head of economic research, said asset yields are gradually catching up after the central bank. “ We see a slow but steady margin improvement through the rest of the year, he said.

Citigroup. s Brian Flores pressed on asset quality in consumer and commercial segments. Gutierrez said there' s no material deterioration. “ We are watching the portfolios closely, but the trend so far is stable, she said.

CFO Diego Saravia confirmed the bank is sticking with it's 2026 targets. Loan growth should land between 8% and 10%. Return on average equity is expected to come in at10% to11%. The efficiency ratio should run at or below 43% for the full year, he said.

The bank's shares have rallied 18% this year, narrowing the discount to book value. The next board meeting of the Colombian central bank is set for September 30.