BOGUTO (Reuters) – Net income for Grupo Aval, Colombia’s largest financial conglomerate, rose 7.85% in the first quarter to 1.45 trillion pesos ($ 394.2 million), compared to the same period in 2020, in order to improve the performance of its consumer portfolio. On Thursday, the company reported lower provisioning costs.
Grupo Aval’s net interest income increased 4.1% between January and March to 3.04 trillion pesos ($ 825.4 million), compared to the same bracket in 2020.
Although the loan and receivables portfolio deteriorated by 11.9% in the first quarter to 1.24 trillion pesos ($ 336.7 million), compared to the same period the previous year, they showed an improvement in the level of non-performing loans. Down to 3.4% compared to the fourth quarter.
Meanwhile, provisions for portfolio impairment and receivables decreased by 40.7% to 664,257 million pesos ($ 180.4 million) in the reporting period.
“The results were also strengthened through a culture of strict cost control,” said a statement from the entity, adding, “Finally, Corficolombiana and Porvenir contributed significantly to the group’s results.”
The Grupo Aval Group consists of the banks of Bogotá, Banco Popular, Banco V Villas, Banco d’Occident, Corporación Financiera Colombiana and the Porvenir Pension Fund.
(1 dollar = 3682.66 pesos)
(Report by Nelson Bocanegra. Edited by Luis Jaime Acosta)