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

Welcome to Grupo Aval's first quarter 2025 Consolidated Results Conference call. My name is Rob, and I'll be your operator for today's call. Grupo Aval Estiones y Velores S.A. is an issuer of securities in Colombia and in the United States. As such, it is subject to compliance with securities regulations in Colombia and applicable U.S. securities regulation. Grupo Aval is also subject to the 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. Unconsolidated financial information of our subsidiaries in the Colombian banking system are presented in accordance with the Colombian IFRS as reported by the Superintendency of Finance. Details of the calculations of non-IFRS measures such as ROAA and ROAE, among others, are explained when required in this report. This report includes forward-looking statements. In some cases, you may 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 risk described from time to time in our filings with the Registro Nacional the Villarese Emissaries, and the SEC. Recipients of this document are responsible for the assessment and 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 other figures include herein are intended to provide a summary of the subjects discussed rather than a comprehensive description. When applicable in this document, we will 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. With us today are Ms. Maria Lorena Gutierrez-Batero, Chief Executive Officer, Mr. Diego Solano, Chief Financial Officer, Mrs. Paula Duran, Corporate VP of Sustainability and Strategic Products, and Mr. Camilo Perez, Banco de Bogotá's Chief Economist. I will now turn the call over to Ms. Maria Lorena Gutierrez-Patero, Chief Executive Officer. Ms. Maria Lorena Gutierrez, you may begin.

Thank you very much. Good morning, everyone, and thank you for joining us for our first quarter 2025 conference call. I am here with Diego Solano, our CFO, Camilo Perez, Chief Economist of Banco de Bogota, and Paula Urán, Corporate VTO, Sustainability and Strategic Project. I would like to start by highlighting these first results. Our net income was $362 billion, a 28% increase compared to the fourth quarter of 2024, and 3.2 times that of the first quarter of 2024. We gained market share in deposits and loans, reaching a 25.3% share in loans and reaching 16.6% in mortgages, the highest level of our history. Core business trends evolved positively during the course, despite a persistent high interest rate environment and a poor performance of the capital market during March. NIMO loans increased slightly during the quarter. NIMO investment recovered as the quality continued improving. Our non-financial sector was stronger than in the three previous quarters and OPEX remained under control. During the quarter, NIMO retail loans of our banking services segment reached the highest level in two years. Total MIMO loans remained flat due to pressures on commercial loans from strong price competition in the corporate segment. Even though our profitability continues to increase, the pace of improvement was slightly slower than initially anticipated, experienced by a lower-than-expected MIMO investment due to the poor performance of local fixed incomes. A deterioration of the country's fiscal outlook and the resignation of the Minister of Finance affected the local markets during the second half of the quarter. This was clear in Port Veneers' results for the quarter. Returns on Port Veneers' stabilization reserves were suffered during the latter part of the quarter, negatively impacting profitability. Corsi contributes strongly due to seasonal dividend, higher income from the infrastructure sector, and a decreasing cost of funds with rich single digits in the quarter. Now, moving on to our corporate priorities, I would like to give you a brief update. First, customer experience. In terms of customer experience, we systematically measure the Net Promoter Score, NTS, across all of our entities to assess customer satisfaction and loyalty. The consistent improvement in NTS results reflects our strong commitment to enhancing customer journey. As part of this effort, we have implemented a comprehensive loyalty program that includes and about experiences, which provides customers with privileged access to events and concerts. Additionally, we have developed Augusta, a robust and integrated customer database that enables us to gain deeper insights into our clients' relationships across our entities and to serve them with great precision and relevance. This year, we established a group-wide committee to promote the change of best practices and customer experience across our entities. As key steps in this effort, we are reviewing our entire voice of the customer model and standardizing net promoters, or NTS, measurement in line with the highest industry standards. Additionally, we'll launch a comprehensive internal program to further embed a customer-centric culture throughout our entities, which includes dedicated training sessions, strategic communication content, and technological tools. Second, financial diversification. On this point, we have been working over a recent course in three fronts. First, improve our commercial and marketing capabilities around retail deposits. Second, we use balance sheet sensitivity to address risk volatility. And third, improve our non-banking fee generation capabilities. As part of our focus on increasing our share of retail funding, we have made changes in the incentive structure of our sales forces. In addition, we are reviewing our product base to strengthen our value proposition for retail customers. In addition, our banks, particularly those focused on retail lending, continue employing these efforts to reduce their sensitivity to interest rate risk. First, they have increased the mix of the time deposits in their overall funded mix. Second, increasing the tenures on new time deposits to leverage closer to the duration of their loans. using hedging strategies to swap fixed rate time deposits to IDR. The speed of deployment of this strategy has been mindful of the persistence of the higher or longer interest rate environment in Colombia. We continue strengthening our services, offering a non-banking fee generation by improving our asset management and advisory services. As mentioned in our last poll, Aval acquired the investment of Corfi in trust and brokerage business. In addition, we incorporate Aval Banca Inversión Investment Banking as a joint effort of the holding company and Corfi. Third, synergies and efficiency. During the quarter, we set ourselves to capture efficiencies in the following calendar year. The first wave of synergies will leverage on decentralization through Aval Valor Compartido of the groups procurement, facility and property management, accounting function, cybersecurity, payroll, and recruitment. During the first quarter, we successfully migrated Banco de Bogota's processes into Aval Valor Compartido. Next semester, We will migrate these processes to Banco de Occidente, Banco Popular, and Avedillas. Four, digital transformation and innovation. We aim to consolidate our culture of innovation and internet technology, capitalizing on the benefits of artificial intelligence, assuring technology stability and security, and promoting digital transformation to improve our business and product and service offerings. On this front, I am proud to announce we partnered with Microsoft to boost the usage of artificial intelligence in our everyday operations. We leverage customer experience, operational efficiency, and decision-making. We actively support the real-time payment system led by Banco de la Republic, achieving significant progress in the creation and use of our alphanumeric key known as TACAVAL. As of today, we have enabled 8.9 million keys, an increase of 15% since December of last year, to receive near real-time transfer from other financial institutions. This has facilitated over 2.1 million transactions, a 70% increase compared to January. Fifth, corporate culture. To support the strategic priorities that I have mentioned, we continue to strengthen our performance and customer-oriented culture. As part of this process, we have been working on promoting and improving the communication of our leadership across business units and throughout our organization around our strategic priorities as a group and key initiatives. In addition, we are well advanced in the process of refreshing part of the leadership team and our bands, combining bringing new talent that adds to existing leaders. These changes combined with the refreshment of our board of directors and CEOs of our main business units, support the alignment of our management team to the new opportunities and challenges that we face. And finally, sustainability. We recently published our Management and Sustainability Report, a document that reflects our economic results and progress in ESG ESG term. It reveals the impact we have on the millions of people who are carrying our endorsement to fulfill their dreams. I invite you to read it if you have not already done so. The coming months will be key to consolidate an even more robust ESG strategy, aligned with the sustainability challenges facing the country and the world. Now, I would like to invite Paula to go over our ESG achievements to really this quarter.

Thank you, Mara Lorena. This quarter, we proudly received the results of the Merco ESG Responsibility Ranking, which recognizes the companies with the best reputation for their ESG impact in Colombia. In the ranking, Grupo Aval rose to 71st place, landing 17 positions and positioning itself as the third largest business conglomerate in the country. In the financial sector, Banco de Bogota ranked third, Banco Occidente and Banco Abavillas were in the top 10, Corte Colombiana ranked eighth, and Forganiz reached second place in the AFP sector. One of our most significant social initiatives, Mision La Guajira, advanced this quarter with registration and documentation programs with the National Registrar's Office and with financial education programs. During the quarter, we completed water solutions for 45 communities and energy solutions for 81 communities in Manaure and Bolivia. Our commitment to diversity and inclusion continues to be an important driver for us. Today, 35% of our management positions are held by women, and 55% of our employees are women. The percentage of women's participation in our boards increased from 24% to 31% after the Q1 assemblies in which boards were elected. And in addition, the percentage of independent members increased from 58% to 60%. Regarding our progress in environmental issues, we continue to define our decarbonization route together with the group's entities, and we continue to implement a coefficient project such as the Banco Popular Alliance with Promigaz to generate social energy for 13 of its branches. This initiative will allow them to generate more than 570,000 kilowatts per year and avoid the emission of close to 300 tons of CO2. Finally, during the quarter, we enhanced our ESG management model by developing a comprehensive reporting system that enabled us to establish a baseline for more than 150 indicators across our entities. This foundation has allowed us to build dynamic dashboards to track progress in the key ESG areas. We firmly believe that by working together with our entities, sharing best practices, and monitoring progress, we can amplify the impact of our efforts and drive meaningful, measurable change. We will continue to strengthen our internal capabilities, advance our environmental goals, deepen our social impact programs, and more accurately measure the value we generate. Thank you.