Grupo Aval Acciones y Valores S.A. ADR (Each representing 20 preferred shares)

Welcome to Grupo Aval's third quarter 2020 Consolidated Results Conference Call. My name is Sylvia, and I'll be your operator for today's call. Grupo Aval Acciones y Valores S.A. Grupo Aval is an issuer of securities in Colombia and in the United States. As such, it is subject to compliance with securities regulation in Colombia and applicable U.S. securities regulation. Grupo Aval is also subject to inspection and supervision of the Superintendency of Finance as holding company of the Aval Financial Conglomerate. The consolidated financial information included in this document is presented in accordance with IFRS as currently issued by the IASB. Details of the calculations of non-GAAP measures such as ROAA and ROAE, among others, are explained where required in this report. This report includes forward-looking statements. In some cases, you can identify these forward-looking statements by words such as may, will, should, expects, plans, anticipates, believes, estimates, predicts, potential, or continue. or the negative of these and other comparable words. Actual results and events may differ materially from those anticipated herein as a consequence of changes in general, economic, and business conditions. Changes in interest and currency rates and other risks described from time to time in our filings with the Registro Nacional de Valores y Emisores and the SEC. Recipients of this document are responsible for the assessment and the use of the information provided herein. Matters described in this presentation and our knowledge of them may change extensively and materially over time, but we expressly disclaim any obligation to review, update, or correct the information provided in this report, including any forward-looking statements, and do not intend to provide any update for such material developments prior to our next earnings report. The content of this document and the figures included herein are intended to provide a summary of the subjects discussed rather than a comprehensive description. When applicable in this document, we refer to billions as thousands of millions. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. I will now turn the call over to Mr. Luis Carlos Armiento Gutierrez, Chief Executive Officer. Mr. Luis Carlos Armiento Gutierrez, you may begin.

Good morning, and thank you all for joining our third quarter 2020 conference call. I hope that all of you and your families are keeping healthy. During the third quarter, several of the countries where we operate started to ease their mandatory quarantines and the effect on their economies was felt almost immediately, more so after the sharp contraction experienced during the second quarter. Our subsidiaries are also benefited, as evidenced by the pickup in banking fees and revenues from infrastructure. We are, however, months, if not years, away from returning to business as usual, as economic recovery and health challenges remain ahead of us. In today's presentation, I will cover the following. a macro review of the economy during the third quarter of 2020, a quick update of our loan relief programs, the progress of our digital efforts, and the main highlights of our financial performance. I will spare you of Ruta del Sol-related topics because there have been no new developments since we last spoke. Starting with macro, after the gradual reopening of certain sectors of the economy at the end of the previous quarter, and the easing of the mandatory lockdowns since September, economic activity has reignited and has begun to slowly crawl back to its pre-pandemic level. Indicators such as energy demand, Google mobility, and fuel deliveries show a further acceleration of the economy in October. During the third quarter, the economy contracted 9% when compared with the same quarter in 2019, a substantial improvement when compared to the 15.7% decline observed during the second quarter. In fact, when compared to the previous quarter, the economy grew 8.7%. As a result, during the first nine months of 2020, the economy has contracted 8.1%. Examining the quarter's performance from the supply side, three sectors registered growth when compared to the same period during 2019. Agriculture, which represents 7% of GDP, grew 1.8%. Financial services, which represent 5.3% of GDP, grew 1.3%. And real estate activity, which represents 10% of GDP, grew 1.7%. The remaining nine sectors analyzed contracted, although at a slower pace than in the second quarter. Among those, commercial activities fell 20.6%, manufacturing contracted 6.9%, and government services decreased 0.8%. From the demand side, when compared to the same period in 2019, private investment fell 20.2%, household consumption decreased 9.3%, and government consumption grew 1.8%, resulting in domestic demand decreasing 9.8%. We now expect GDP to contract approximately 6.5% in 2020. We're cautiously optimistic about the country's growth prospects for next year and believe that GDP growth will approximate 4% in 2021. Although no current account deficit figures are yet available for the third quarter, it is worth mentioning that this deficit narrowed significantly during the first half of the year, closing at 3.3% of GDP as of June 2020, down from 4.3% in 2019. In short, the country's trade balance deficit has narrowed as oil exports have been aided by better oil prices, imports have decreased, and remittances have surprised on the positive side. We expect that Colombia's current account deficit closed 2020 at around 3.5% of GDP. During the third quarter, volatility in the exchange rate decreased when compared to the second quarter of 2020, mainly due to a worldwide increase in demand for risk assets. Since June, the exchange rate has fluctuated in the 3,600 to 3,850 pesos per dollar range. We expect that the exchange rate will remain inside this range during the remainder of the year and in 2021. Twelve-month inflation has continued its downward trajectory, falling significantly from its peak of 3.86% in March to 1.75% in October. During October, inflation registered at minus 0.06%, mainly driven by negative variations in rents, food, and education. We now expect that 2020's inflation will be in the range of 1.8 to 1.9% and gradually move upwards to a range of 2.8 to 3% during 2021. Low inflation and inflation expectations have given the central bank additional room to continue with its expansionary monetary policy, lowering the repo rate by 50 additional basis points since our last call to 1.75%, totaling a 250 basis points decrease this year. We believe that the central bank has reached the end of its interest rate cutting cycle and that rates will remain stable for at least the next two quarters. In line with the adverse effect of the quarantines and business activity, the labor market has experienced a sharp contraction during 2020. However, the most recent payroll numbers for September show some signs of recovery. In fact, urban unemployment, which reached a high of 24.9% in June, improved to 18.3% as of September. We believe that with the ongoing normalization in business activity, further improvement could be expected by the end of 2020, and we estimate that in 2021, unemployment figures will improve by 200 to 300 basis points. On the fiscal front, the government deficit targets for 2020 and 2021 were just revised, as were its expectations for GDP growth. As the government expectations for GDP contraction for 2020 increased from 5.5% to 6.8% and for 2021 decreased from 6.6% to 5%, the deficit targets are now 8.9% of GDP in 2020 and 7.6% of GDP in 2021. Consequently, the fiscal rule has been suspended until 2022. Colombia's government has implemented two important economic programs to mitigate the effects of the pandemic. First, the National Emergency Fund, FOMI, which amounts to 2.8% of GDP, or 25 trillion pesos, is being used to subsidize payrolls, expand the capacity of the healthcare system, and enlarge existing social programs to support low-income households. In addition, through the Unidos por Colombia program of the National Guarantee Fund, Fondo Nacional de Garantias, the government is providing guarantees for bank loans to small businesses for up to $25 trillion, of which $14.2 trillion have already been disbursed. We obviously remain watchful and concerned of a possible second wave of the virus and hope that no further lockdowns will be required as in some European countries. Moving on to Central America, the IMF updated its expectation for the region's GDP and now expects a contraction of the region's economy of 5.9% in 2020 and growth of 3.6% in 2021 numbers with which we concur. A key variable will be a continued recovery in remittances. Panama and El Salvador are expected to be the most impacted, contracting their GDP by 9% each in 2020, in line with the strict lockdowns implemented at the beginning of the pandemic in these countries. GDP for both countries is expected to grow 4% in 2021. GDP for Honduras is expected to contract 6.6% in 2020, mainly impacted by lower exports, and to grow 4.9% in 2021. Both Costa Rica and Nicaragua are expected to evidence a contraction of 5.5% in their GDP in 2020. GDP, however, is expected to grow 2.3% in 2021 in Costa Rica and to decrease 3%. an additional 0.5% in Nicaragua. Finally, Guatemala is expected to be the least impacted economy, contracting only 2% in 2020. The Guatemalan economy is expected to grow 4% in 2021. Regarding our debt relief programs, as of September 30, we had granted debt relief to approximately 35% of our consolidated loan portfolio, or approximately 73 trillion pesos. Approximately half of these reliefs were granted in Colombia and the other half in Central America. As of the same date, about half of total reliefs granted were still active, approximately 35 trillion pesos, or 17% of our total consolidated loan portfolio. Active reliefs are also split 50-50 between our Colombian and Central American operations. Active reliefs in Colombia represent 14% of our Colombian portfolio, while in Central America they represent 23% of the region's portfolio. Of all loans that have concluded their relief periods, as a percentage of our total consolidated loan portfolio, 1.3% are currently past due 30 days or more. Regarding our digital strategy, up to now, we have primarily focused on transforming our core product into digital solutions. In fact, we now offer more than 30 digital products through our banks. By all indications, the current juncture has accelerated digital adoption. Digital sales grew 50% in the last nine months compared to the same period of 2019. In addition, the migration process of monetary transactions from brick and mortar to digital channels has accelerated. The following figures exemplify what we have achieved. In Colombia, 71% of monies transacted during the third quarter were conducted through our digital channels compared to 56% a quarter earlier. On the other hand, during this same period, 25% of monies transacted were conducted through our branch network down from 41% in the previous quarter. Monetary transactions done through our branch network represented 13% of total monetary transactions in the third quarter down from 30% a year earlier. In Central America, BAC has enabled hundreds of new service request options in both web and most recently mobile channels. In just the first month of implementation, service requests via the mobile banking platform represented more than a third of all digital requests. Monetary transactions in self-service channels have reached an all-time high, increasing 40% year-over-year. With respect to remotely assisted service, this quarter back-processed 22% more service requests than last quarter via WhatsApp. In fact, for the first time, digital inbound interactions surpassed telephone calls. WhatsApp now represents more than a third of all inbound interactions and close to 70% of the digital inbound interactions. And now, referring to our financial results, our net income results for the quarter we showed a marked improvement when compared to the previous quarter, mainly driven by a strong contribution of our fixed income portfolios, a recovery in fee income, and higher income from our non-financial businesses, especially from our toll roads and promigas. Cost of risk during the quarter slightly decreased, although we expect to continue to show high cost of risk in the next few quarters. Although Diego will refer in detail to our financial performance, these are a few highlights for the quarter. Aided by the acquisition of multibank, Aval's consolidated assets have grown 21.9% year-on-year to 334 trillion pesos. Consolidated gross loans have grown 17.2% year-on-year to 210 trillion and consolidated deposits by 24.7% year-on-year to 217 trillion pesos. We're currently targeting loan growth of 9.5% to 10% during 2021. As I mentioned before, the ratio of 30 days past due loans now reflect the end of about 50% of our debtor relief programs. Consequently, as of September 30, this ratio increased from 4.1% at the end of June to 5.2% in the third quarter. As expected, Most of the increase in 30 days past due loans was concentrated in the consumer loan portfolio, whose 30-day past due indicator increased by 180 basis points. Cost of risk during the quarter slightly decreased to 2.9% from 3.1% in the second quarter, and up from 2.5% in the third quarter of 2019. Cost of risk for the nine months was 2.8%, compared to 2.2% during the nine-month period of last year. During the quarter, we increased to 35% the coverage of our total exposure to Avianca, up from 20% a quarter earlier. As we had mentioned in previous calls, we expect cost of risk to end 2020 at approximately 3%. We now estimate that cost of risk will decrease to about 2.5% during 2021. NIM and loans remained unchanged at 5.9% during the quarter, mostly as a result of significantly better cost of funds. We expect that NIM and loans will remain fairly constant at this level during the remainder of 2020 and 2021. Total NIM during the third quarter of 2020 decreased by 21 basis points, versus total NIM during the second quarter, mainly driven by a 110 basis points decrease in NIM on investments. Total NIM for the first nine months was 5.1%, a decrease of almost 60 basis points versus total NIM during the first nine months of 2019. Driven by recovering banking fees, gross fee income increased by 14%, when compared to the second quarter, but still remains shy from pre-COVID levels, showing a 4.8% decrease when compared to the third quarter of 2019. Other operating income increased significantly by almost 45% versus the previous quarter, and almost 50% when compared to the third quarter of 2019, driven by gains and sales of fixed income investments. Income from our non-financial sector operations grew 207% when compared to the second quarter and by 11% versus the third quarter of 2019, mainly due to a significant increase in revenues from infrastructure as construction has recovered its expected pace and by an increase in income from the oil and gas sector related to higher gas demand from the industrial segment. For the nine-month period, income from this sector remains approximately 2% below that from the same period of last year. Operating expenses increased by only 0.1% in the quarter, even though this was the first quarter with a full impact of the multi-bank acquisition. Our cost-to-income ratio improved from 51.3% in the second quarter to 44%, and our cost-to-assets ratio improved from 3.2% in the second quarter to 3.1%. We will keep working on cost containment and currently estimate growth of operating expenses for 2021 at a maximum of 4%. Our funding and liquidity positions continue strong, as evidenced by the deposits to net loans ratio of 1.07 times and the cash to deposits ratio of 18%. As a result of the aforementioned, net income for the quarter was 691 billion pesos or 31 pesos per share and return on average equity was 13.6%. Return on average assets and return on average equity for the nine months were 1.4% and 11.4% respectively. We expect to finish 2020 with a return on average equity slightly higher than 10%, rising to about 13% during 2021. And with that, I'll be glad to pass the presentation on to Diego, who will explain in detail our business results. Thank you very much.

Thank you, Luis Carlos. I will now move to our consolidated results of Rupawal under IFRS. Rupawal's third quarter results reflect the positive impacts of the economic recovery as lockdowns ended boosting non-financial sector and fee income performance. In addition, falling interest rates allowed our banks to improve their trading income and realize OCI gains on fixed income. However, Cost of risk remained high and asset quality begun to evidence the anticipated deterioration that results from release expiring as well as the negative impact of the economic cycle on our customers' payment behavior. Starting on page 8, our quarterly asset growth was 0.3% while 12-month growth reached 21.9%. As mentioned in our last call, the MSG acquisition was closed last May. During the acquisition of MSG and FX movements of our Central American operations, total assets grew 11% over 12 months. Our Colombian assets decreased 0.6% through the quarter and grew 12.5% year-on-year. Our Central American assets recorded a 1% quarterly decrease in dollar terms and a 28.5% year-on-year growth. MSG contributed with 20.4% of the year-on-year growth. Depreciation of 11.2 percent for 12 months and a 2.9 percent for three months take our annual and quarterly growths in pesos of Central America to 42.8 percent and 1.9 percent respectively. The rate of Central America increased slightly during the quarter to 36 percent of our book. Moving to page nine, our loan book grew slightly over the quarter reflecting an improvement in dynamics of the retail lending in Colombia while incorporating the charge of loan. Central American operation maintains underwriting thresholds with loans contracting in dollar terms and growing 2.3% when translated into Colombian pesos. Loans increased 0.4% over the quarter, reaching a 17.2% growth year-on-year. The acquisition of MFT added 13.1 trillion pesos, or $3.4 billion, or year-on-year loan portfolio growth and explains 7.3 percentage points of 12-month consolidated growth in peso terms. Colombian gross loan portfolio increased 7.9% over the year and contracted 0.7% during the quarter. This quarter's performance reflected a recovery of our Colombian consumer portfolio dynamics, a reduction in our commercial portfolio, and the write-off of retail sold. Demand for consumer loans improved in Colombia, resulting in a 2.1% growth in the quarter and 6.5% year-on-year. Our partly growth was driven by secured products and was reported on an improvement in economic activity and the increased effectiveness of our sales network as the sanitary restrictions and lockdowns were progressively lifted. Federal lending that accounts for 57% of our Colombian consumer portfolios grew 4.3 percent, and auto financing that accounts for 7 percent grew 0.3 percent. As others secured retail products, mortgages remained dynamic in Colombia, expanding 3 percent over the quarter and 12.2 percent year-on-year. In contrast, credit cards contracted 2 percent and personal loans 0.7 percent. These products account for 14 and 22 percent of our Colombian consumer portfolio respectively. On the other hand, Colombian corporate loan portfolio decreased by 2.5% over the quarter, growing 8.2% over 12 months when it stood in repos. Corporate lending retrenched to $2.1 trillion over the quarter, mainly in large corporates as they repaid working capital loans dispersed as a safeguard during the first set of lockdowns back in March. Also affecting our growth, we opted to pass on some large corporate and institutional loans that might have been mispriced at the market as competition intensified this quarter. Finally, we charged off Ruta and Sol for 824 billion pesos that accounted for 99 basis points of quarterly increase in commercial loans. Moving to Central America, our gross loan portfolio contracted 0.6% over the quarter and grew 23.2% year-on-year in dollar turns, stating the impact of the acquisition of MFG Central America grew 2.6% year-on-year. Quarterly performance resulted from a 1% and 0.6% contractions of commercial and consumer loans, respectively. Mortgages increased by 0.3% over the quarter. Performance in Central America's commercial loans reflected similar drivers as in Colombia. Consumer loans were mainly driven by a 0.7% contraction in credit cards and a 2.6% decrease in personal installment loans. We expect that commercial loans growth will continue to be affected by the pricing competition and leverage of large corporates focused on high-quality institutional and corporate customers. On the other hand, we expect that detailed loans will continue to recover as employment outlook improves and households slowly regain confidence in a scenario with no further countrywide lockdowns. On pages 10 and 11, we present several loan portfolio quality ratios. As anticipated, delinquency metrics deteriorated through the quarter, evidencing the effect of loan reliefs expiring and a portion of them transitioning into 30- and 90-day PDLs. As of September, 17% of our loan portfolio had active reliefs. Active reliefs were 14% in Colombia and 32% in Central America. Our loan portfolio deteriorated by 111 basis points 5.16 percent on 30-day PELs basis, and by 21 basis points to 3.21 on the 90-day basis of the quarter. Our 30-day PELs is now 61 basis points in the period to that recorded a year earlier, and our 90-day PELs ratio is still five basis points better. Breaking these figures down by portfolios, the commercial loan portfolio deteriorated 61 basis points to 4.7 percent on a 30-day basis over the quarter, and by 13 basis points to 3.7 on a 90-day basis. In Colombia, commercial PELs deteriorated 61 basis points to 5.9 on a 30-day basis, and remained stable on a 90-day basis at 4.7 percent. The Tansol, which was charged up, had a 95 basis points positive effect on these ratios. Central America, 38 PELs deteriorated 74 basis points to 2.1%, while 98 commercial PELs deteriorated 55 basis points to 1.6%. Moving to our consumer portfolio, this portfolio deteriorated 188 basis points to 5.7 on a 38 basis over the quarter, and 43 basis points to 2.4% on a 98 PEL basis. In Colombia, 38 PELs deteriorated 152 basis points to 5.8 percent, while 98 consumer PELs deteriorated seven basis points to 2.7 percent. In Central America, 38 PELs deteriorated 245 basis points to 5.5 percent, while 98 consumer PELs deteriorated by 100 basis points to 1.9 percent. Mortgage PELs deteriorated 124 basis points on a 38 basis, to 5.7 percent and 15 basis points on a monthly basis to 2.9 percent. Our provision expenses remain high during the quarter, reflecting offsetting trends between an improving macroeconomic outlook in Colombia and a softer one in Central America, as well as the deterioration of asset quality measured by stages under IFRS 9. Contractions in riskier portfolios in our corporate loans favored our quarterly cost of risk. Cost of risk improved by 18 basis points from the quarter, six basis points of which are explained by better recoveries of charged-up assets. Cost of risk of commercial loans improved 82 basis points, while that of retail loans deteriorated 63 basis points. Cost of risk in Colombia improved 60 basis points and deteriorated 57 basis points in Central America. The increase in cost of risk in Central America resulted from a pickup in cost of risk for retail loans, partially explained by a recovery in dynamics of credit cards. Our third quarter cost of risk incorporates a 0.7% contraction in credit cards that favorally compares to a 4.6% contraction recorded during the second quarter. In addition, Central American cost of risk reflects an earlier expiration of reliefs, particularly in Costa Rica and Guatemala. Meanwhile, in Colombia, cost of risk for retail loans was lower during the quarter, mainly due to an improving macro scenario and an increase in recoveries of charged retail loans. Our banks continued to assess their loans according to risk level in order to evaluate expected credit losses and determine impermanent charges. This resulted in an increase in Stage 2 exposures and in individual assessed commercial loans under Stage 3. As mentioned in previous calls, consolidated exposure to the Avianca Group is approximately $188 million, equivalent to 727 billion pesos as of September 30th, 2020. 33% of this exposure is secured with international buildings and 20% is secured with Avianca's quarter buildings in Bogota. Coverage for Avianca reached 35% as of end of September. Avianca rolled into 98 PELs in the third quarter. Recoveries of charged-out assets improved during the quarter as collection efforts regained traction with lockdowns receding. We expect that our provision expenses will increase in the fourth quarter as we incorporate an iteration in Central America and macro expectations. Loans-related provisions are booked and reliefs continue expiring and a portion of Stage 2 loans transition to Stage 3. Finally, our PEL coverage of 98 PELs slightly increased to 1.5 times. On page 12, we present funding and deposit evolution. Funding growth through the quarter continued to reflect a conservative liquidity profile to face the risk associated with the pandemic. As a result, our deposits-to-loans ratio increased to 107%, while our cash deposits ended the quarter at 18%. Funding structure shifted slightly towards deposits, now accounting for 77% of total funding. Deposits increased 2.3% during the quarter and 24.7% year-on-year. Colombia grew 0.7% during the quarter. Central America grew 1.9% in dollar terms during the quarter. The 12-month period, Colombia grew at 12.7% and Central America at 34.9% in dollar terms with 18.9% explained by MFG. On page 13, we present the evolution of our total capitalization, our total shareholder's equity, and the capital adequacy ratios of our banks. Total equity grew 9.5% year-on-year, while our total equity increased 7.8%, mainly driven by our earnings. Partly gross, we're at 3.7% and 4.4% in speculative. As of third quarter 2020, our banks show appropriate Q1 and Q2 solvency ratios. Accordingly, increase in Q1 for Banco Popular is mainly explained by the risk-weighted asset contraction. Banco de Bogota solvency remains flat. We expect that the transition to Basel III, the solvency ratios of Occidente, Popular, and Villas will increase a few percentage points, while Bogota should remain at a similar level to the current ratio. On page 14, we present our yield on loans, cost of funds, funds spread, and net interest margin. Our net interest margin performance during the quarter was driven by a stable lean on loans and a lower lean on investments. Lean on loans remained stable during the quarter, mainly due to an aggressive strategy to incorporate the central bank dynamics that yielded up to the one basis point reduction in cost of funds. In addition, our second quarter included a $34 billion pesos reduction in interest income or 14 basis points reduction in net interest margin and loans associated with a recognition of our increasing present values of loans due to the terms under which reliefs were granted. We expect that competitive pressure on pricing of loans, particularly that for the highest quality risk, will persist as the macro outlook improves. However, when compared to 2020, 2021 is expected to benefit from lower rates paid by our banks as they fully incorporate the central bank intervention rate cuts observed this year. Net interest margin and investments will continue to depend on gold liquidity and geopolitical events for the last quarter of the year. On page 15, we present net fees and other income. Gross fee income for the quarter, which acts as the increasing activity due to end of lockdowns, and the temporary waivers on transactional and other fees. Pension fund fees were positively affected by an increase in performance-related fees on mandatory pension funds and assets under management fees, charge, and severance funds. Partly gross fees increased 14.3 percent in Colombia and 16.8 percent in dollar terms in Central America. We expect to see further recovery in this front as economic activity continues to improve over the following quarters. A performance of the non-financial sector reflects the recovery of infrastructure and gas sectors, our two main non-financial businesses. Small restrictions on infrastructure sector in Colombia were lifted early in the third quarter. Construction progress picked up to pre-COVID levels. The energy and gas sector was positively impacted by a recovery of the demand for industrial gas. Finally, on the bottom of the page, higher order income in the third quarter is mainly explained by strong results in OCR realization in high income and FX and derivatives from Central America due by the depreciation of the Cologne over the quarter. On page 16, we present some efficiency ratios. All of our business units continue implementing cost contention and reduction initiatives during the quarter. The result, cost to assets improved to 3.1% down from 3.2% in the previous quarter and 3.9% a year earlier. Cost to income improved during the quarter to 44%, reflecting a recovery of fees and income for the non-financial sector, as well as a strong other income as described before. Other expenses remained flat both over the quarter and year on year despite the acquisition of MFG and FX fluctuations. Between these effects, oil expenses contracted 0.5% in the quarter and 8.2% year-on-year. Quarterly, Colombian oil expenses decreased by 3.5% over the quarter and 9.1% year-on-year. Central American expenses increased 8.1% over the quarter and 2% year-on-year in dollar turns, now incorporating a full quarter of energy up from one month in the second quarter. Excluding MSG, Central America and other expenses grew 4% over the quarter and decreased 6.9% year-on-year in dollar terms. Partly growth in Central America was influenced by an $8 million increase in severance payments. Our consolidated quarterly personal expenses increased 4.5% over the quarter and 7.1% year-on-year. Over the quarter, personal expenses increased 3.7% in Colombia and 8.5% in dollar terms in Central America, now including a full quarter of MFG. Personnel expenses grew 1.8% without the effect of MFG, including the severance payments mentioned before. After the effect of MFG and FX fluctuations, personnel expenses increased 2.8% over the quarter and decreased 2.2% year on year. Early general and administrative expenses increased 2.9% over the quarter and decreased 6.8% year-on-year. The latter reaches 12.8% decrease when achieving the effect of MFG and FX fluctuations. Finally, on page 17, we present our net income and profitability ratios. Attributable net income for third quarter 2020 was 691 billion pesos or 31 pesos per share. Year 2-8, attributable net income reached 1.7 trillion pesos, or 77 pesos per share. Return on average assets and return on average equity per quarter were 1.5% and 13.6% respectively. Year 2-8, return on average assets and return on average equity reached 1.4% and 11.4% respectively. Finally, even though a high level of uncertainty persists, I will summarize our expectation for 2020 and 2021. We expect loan growth to be in the 17% area in 2020 and in the 9.5% to 10% area next year. Our net interest margin should remain fairly stable at 5.9% for both years. Determined equity for this year should be close to 10% and improved to 12.5% to 13% in 2021. We will have a 2020 cost of risk in the 3% area, including next year, to close to 2.5%. Fees should grow a couple percentage points faster than a loan portfolio. And finally, we will have a 2020 expense growth in the 4% area as we have this year. We will now open it for your questions.