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

Welcome to Grupo Eval's third quarter 2025 Consolidated Results Conference Call. My name is Regina, and I will be your operator for today's call. Grupo Eval Acciones y Valores S.A. Grupo Eval is an issuer of securities in Colombia and in the United States SEC. As such, it is subject to compliance with securities regulation in Colombia and applicable U.S. securities regulation. Grupo Eval is also subject to the inspection and supervision of the Superintendency of Finance, as holding company of the Evolve 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 and the Colombian banking system are presented in accordance with Colombian IFRS as reported 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 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 in 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 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. With us today are Ms. Maria Lorena Gutierrez-Botero, Chief Executive Officer, Mr. Diego Celano, Chief Financial Officer, Mr. Jorge Castaño, Corporate VP of Financial Assets and Efficiencies, Mrs. Paola Duren, Corporate VP of Sustainability and Strategic Projects, Mr. Jorge Alcalvaro, VP of Synergies at Evalo Valor Compartido, and Mr. Cornelio Perez, Banco de Bogotá's chief economist. I will now turn the call over to Ms. Maria Lorena Gutierrez-Botero, chief executive officer. Ms. Maria Lorena Gutierrez-Botero, you may begin.

Thank you. Good morning, everyone, and thank you for joining us for our third quarter 2025 conference call. I am here with Diego Solano, our CFO, Jorge Castaño, corporate VP of Financial Assets and Efficiency, Paula Duran, Corporate VP of Sustainability and Strategic Projects. Jorge Osalvaro, VP of Synergies at Aval Valor Compartido. And Camilo Perez, Chief Economist of Banco de Bogota. This quarter will reach a year-to-date net income of 1.43 million pesos, 88% higher than the same period of 2024. Net income for the quarter was 521 billion pencils, the highest quarter figure in three years, growing 25.3% over the year and 5.3% over the quarter. This performance reflects a strong net income, a continued improvement in casualty loans, a pickup in loan growth, and the results of our cost-contention efforts. Before analyzing our financial performance, I will share the progress made in some of our strategic projects. First, our banks have continued working on improving their deposit needs through retail funding. We launched accounts and saving pockets with a special remuneration rate and repositioned our bank payroll account value proposition to both individuals and businesses. We also introduced product offerings to face increased competition, including short-term side deposits and savings accounts with competitive rates. As a result of the above, pesos denominated deposits from individuals grew 22% over the year with savings and checking accounts growing 11% and third deposit 31%. Second, in addition to the deposits, our effort to increase our presence in the consumer segment considers increasing our share of lending products where we are underweight and revamping our payment value proposition. We aim to increase our market share in credit cards, where we have a space to grow. On this front, we enter an alliance with Visa that grant us exclusivity in Colombia for the FIFA World Cup. Third, on October 6th, the Central Bank immediate payment system officially started operations, offering every day, at any time, instant and free transfers. This system will reduce the use of cash and promote financial inclusion. In Colombia, 75% of monetary transactions are with cash. We estimate these numbers could go down to 55% in three years, considering Brazil's peak experience. Given this opportunity, in September 2025, we launched GoPayments, own instant payments with world-class infrastructure that will improve our time to market and offer innovative, safe, and user-friendly solutions. Four, as we mentioned in the past, we are simplifying our processes through transversal initiatives, capturing value in our operational and administrative processes. This effort is based upon our main guiding principle, our external and internal customers go first. I will now invite Jorge Otalvaro to go into more detail on Goan payments and our synergies plan executed through Aval Valor Compactido.

Jorge? Thank you, Maria Lorena. Good morning. At Grupo Aval, we are fully committed to driving the immediate payment system led by Central Bank in Colombia. GoPayments will serve as our payment platform for the group's entities, and we also enable fintechs, trust companies, and other players to connect the payment system where our value proposition is autonomy, differentiation, and agility in time to market with the central bank across all channels. Our strategy includes of the processing capabilities, traditional and instant payments, including house services for about banks and third parties. We are ready to launch innovative solutions that deliver a competitive edge, including interoperability for account-to-account merchants and payments, advanced capabilities in cash management, payment collections, QR solutions, and open ecosystem for third parties. Our four banks and DALI, were the first and only players in Colombia offering seamless private cash transfers via WhatsApp, merging into our clients' day-to-day habits and offering an easy experience. We will measure success by the impact on cash reduction and the adoption of services by new clients, prioritizing cash management and excellence in P2P services. Let me mention our performance during the first month of spread. More than 8 million keys individuals, 62% of them which are TACAVAL, the only customizable alphanumeric key in the market, more than 10 million transactions. We also have a market share over 45% in merchant keys with more than 1 million keys And finally, we process more than 10 million transactions with a total amount of 2 trillion pesos. Now, let me share our results on synergies and efficiencies at Aval Valor Compartido ABC. In 2025, we focused on identifying potential synergies and implementing action plans to capture efficiencies to standardization and process mastery while raising productivity and control standards. After analyzing 30 administrative and operational processes, we initially selected eight key processes for our synergy model. Administrative processes include procurement, property management, facility management, talent acquisition, payroll, and physical security. Currently serving Banco de Bogotá Banco del Occidente, Aval Valor Compartido, and Gold Payments. Other entities will be incorporated in the coming months. A second wave to be launched next year will focus on operational synergies, particularly in office banking processes and IT synergies such as cloud, data center operation, and optimization of our physical channel network. Some of the key achievements in 2025 are 40% reduction in procurement cycle time, 50% simplification of active contracts, and we also launched the Aval Real Estate portal, and we could buy two-thirds the commercialization times for other real estate owners. In cybersecurity, we designed the Cybersecurity Synergies Strategy prioritizing the security operational center, SOC, and the centralization of the critical tools. The SOC service points coverage increased from 16 to 23 connected companies. We also launched the AvalTalent portal that will reduce 20% in real time to hire. Finally, talking about ADNs and banking agents, we are the first to implement near-field communication NFC technology in Colombia, and we developed also a machine learning model to optimize coverage of AvalPan's physical service points. Thank you all for your attention. Maria Lorena.

Thank you, Jorge. Last year, we announced the acquisition of Corfe Colombiana share in the trust company and the broker deal. and we launched a while simultaneously creating investment funds. We are now moving into the second phase by integrating the Trust Funds, Trust, States, and fiduciaries operation of Fido Bogota, Fido Occidente, and Fido Popular into our fiduciaries. With this strategy, Aval further expanded its leadership in the asset and wealth management business in Colombia and abroad. Now, I invite Jorge Castaño, our VP, to share with you our advancements and perspectives in the Aval asset management business. Jorge?

Jorge Castaño- Thanks, Maria-Gorea, and good morning, all of you. As Maria-Gorea mentioned before, this operation is part of our extended corporate strategy aimed at improving operational efficiency, diversifying revenue streams, and strengthening our competitive position in key markets as the non-banking financial services. The initiative is expected to deliver meaningful financial and operational benefits over time, supporting sustainable growth and resilience in an evolving economic environment. Our fiduciary is set to become the largest fiduciary in Colombia by assets under management, with 201 trillion pesos, and the leading institution in free income with 21% of the market share. The company will oversee more than 5,500 trust funds and diversify our range of products and services, serving retail, small and medium enterprise, corporate, and institutional clients. Through Aval Casa de Bolsa, we will strengthen our capabilities in fixed income, equities, derivatives, and FX markets, enhancing long-term value creation, and consolidating our leadership in the Colombian financial sector. Next year, our fiduciary will continue to strengthen its position in the fiduciary market. We expect to increase our share of total industry fees and consolidate our position as the number one player. In 2026, free income is projected to grow around 13.2% versus 2025, exceeding 635 billion pesos, 635. We also expect tailwinds from deepening of the commercial model with Banco de Bogota and Banco de Occidente, and implementation of the new integrated commercial model with our other banks. By business line, we are targeting funds free growth of 20%, explained by increase in assets under management, well above the sector's expected 12.7%, and administration growth of 15.4 compared with 7.1 for the industry, supporting our ability to capture superior value in 2026. This transaction will also unify fiduciary risk management policies and operational processes, and importantly, enhance commercial synergies across our other business segments. In addition, we expect to capture cost efficiencies in the medium term. We are working to strengthen Aval Fiduciaria's product portfolio and customer service. We will have an integrated commercial model in coordination with our four banks across the country, as well as with Porvenir and Aval Casa de Bolsa. Their offering also incorporates cash management solutions and offshore investment access via digital platforms and corresponding agreements in Panama and the USA. The integration also accelerates the rollout of enhanced digital investment channels, enables better penetration across retail, small and medium enterprise, and corporate clients, and supporting a materially high distribution capacity across Grupo Aval's client base. Transactions also receive regulatory approval by the financial superintendents, and the required corporate approvals are expected to be received by month end. We aim for Aval Fiduciaria to start operation as a single company with unified clients facing challenges by January 2, 2026. That's all from me for now.

Thank you. Thank you, Jorge. Now, Paula will go over our sustainability achievements for this quarter. Paula?

Thank you, Maria Lorena, and good morning, everyone. The most relevant sustainability highlights for Group of Life in this quarter include the definition of our sustainable strategy with a vision that further connects our business goals to our ESG impact. We call it sustainable ROE. R for returns with purpose, O for opportunities for all, and E for environmental value. Across all three pillars, we have defined specific goals and actions in close collaboration with our entities. Starting with our returns with purpose pillar, this quarter, all our entities participated in the PSA assessment of the Dow Jones Sustainability Index. Results will be released at the end of this year, but preliminary scores already reflect significant progress compared to global industry leads. During the quarter, we also received several recognitions for our sustainability achievement. Banco de Bogotá, Corte Colombiana, and Promigaz were included by Forge Colombia among the 50 leading companies in sustainability for this year. Additionally, the Global Compact Network Colombia announced the Sustainable Development Best Practices Award one in five different categories, gender equality, climate action, reducing inequalities and decent work and economic growth. In terms of sustainable finance, we continue to achieve strong results. Our sustainable portfolio reached 35 trillion pesos with 78% representing our social portfolio and 22% our green portfolio. In line with our commitment to the energy transition and the development of resilient infrastructure in Colombia, We have consolidated our position as a leading player in the structuring and financing of major projects nationwide. Under the leadership of Aval Banca Inversión, Banco de Bogotá and Banco Oficiante participated in the financing of the , a landmark infrastructure project connecting Medellín with the Corte Barilla-Cordova International Airport, expected to generate over 2,000 direct jobs. Additionally, Grupo Aval led the $1.9 trillion FEDS refinancing for the Hidalgo Ibagué Cajamarca Heights. We are also leaders in financing of social projects that incorporate more than 800,000 panels, expanding clear energy generation and strengthening the country's renewable infrastructure. Moving to the opportunities for all pillars, quarterly highlights include our participation in the Avalos Finance 2025 Campaign. to support young people from vulnerable backgrounds to complete their university studies. All of our entities, branches, and ATMs are open for donations through the campaign, which is expected to benefit 1,200 students through university scholarships. Our entities also continue advancing social programs focused on financial inclusion, education, and productive projects. Our progress in diversity, equity, and inclusion was also recognized by the IE Quality Ranking, where three of our companies were ranked among the top ten in Colombia in their categories. Regarding our flagship social initiative, Mision La Guajira, we continue delivering on our commitment. Since its launch a year and a half ago, we have brought water, energy, and connectivity to vulnerable communities, benefiting more than 21,000 people and 3,000 families across 80 communities. On the environmental balance front, during this quarter, we defined global climate strategy, which establishes a comprehensive roadmap to strengthen the management of risks and impacts associated with climate change. The strategy adopted IFRS 2 guidelines and CCFP recommendations in line with the financial superintendents of Colombia's regulation. We cleared goals to reduce emissions by 51% by 2030, and to promote carbon neutrality by 2050. We reaffirm our commitment to a low-carbon economy aligned with the Paris Agreement and Colombia's national sustainability objectives. It is also worth noting that beyond our entities' individual progress, Banco de Bogotá became the first bank in Latin America to report under the TNFP standards, assessing the impact of its operations on nature. In conclusion, we continue delivering across all ESG dimensions, remaining firmly committed to achieving a sustainable ROE. proving that profitability and sustainability are not competing goals for two sides of the same vision, creating lasting value for people, for the planet, and for the country. Thank you. Thank you, Paula.

Now, moving to the macro environment, let me share some key trends affecting our business. Monthly data indicates that in the third quarter, the Colombian economy continues to perform positively, primarily driven by increased household demand. The main sectors driven growth remain public administration, entertainment and commerce. Looking ahead, we expect GDP growth of 2.7% in 2025 and 2.8% in 2026. This inflation has stalled. Inflation reached 55.51% in October surpassing the 2024 year-end figure of 5.2%. We now expect inflation to close at 5.3% in 2025 and 4.2% in next year. This bill incorporates an upward pressure in the coming months, particularly driven by ongoing minimum wage discussions. the fiscal environment remains challenging. The government approved the 2026 national budget at 546.9 trillion pesos. However, this last year passed back to the fiscal rule, suspended this year. Analysts predict a fiscal deficit of minus 7.5% of GDP in 2025, were down 7.1% forecasting the medium-term fiscal framework. In September, the Central Bank kept its policy rate unchanged at 9.25%, maintaining a cautious stance amid persistent inflationary pressures. We expect rates to remain steadily through early 2026, with costs beginning in the second quarter of 2026, ending the year at 8.25%. Camilo will now elaborate on our economic outlook. Camilo?

Thank you, Madalena. Good morning to all attendees. In the third quarter, the Colombian economy extended its upward trend to such an extent that annual growth rates estimated to be around 3% for this month, a high since 2022. Domestic demand continued to explain its strong performance of local activity. Consumer confidence returned to positive territory and has now been trending upwards for more than two years, while the national unemployment rate reached its lowest level ever for a third quarter, averaging 8.5%. Coupled with solid household income, both from employment and unemployment sources, Colombians continue to increase their consumption, especially of goods, which has also been supported by credit. Consumer loans reached their highest annual growth rate since 2023 in the third quarter. Furthermore, the increased domestic demand has also been supported by a high influx of tourists, with more than 7 million visitors so far this year to a record high. For this part, government current investment spending grew in real terms by more than 3% in the third quarter, also supporting economic activity. In this context, The best performing economic sectors continue to be those most dependent on demand from both residents and non-residents, as well as the public sector, such as commerce, entertainment, transportation, accommodation, manufacturing, food, services, and finance. On the export side, the best results are seen in coffee, processed foods, coal, bananas, and textiles, especially leather, which offset the decline observed in oil and coal exports. Regarding investment, the persistent lack in construction, the solid buildings, continues to hinder the sector's potential improvement, which is only supported by civil works, machinery, equipment, and biological resources investment. The investment recovery could improve after 2026, elections, if uncertainty dissipates. Given this context, but acknowledging global risks and the local electoral cycle, the 2025 growth projection remains at 2.7%, close to the potential level and higher than the figures for 2023 and 2024. For 2026, the economy could improve to 2.8% growth. Turning to prices, the inflation process is tall in the third quarter, with inflation reaching 5.2% in September, the same level as the year-end figure for 2024. In October, inflation increased to 5.5%. Inflationary pressures have persisted in food due to higher input costs, goods due to increased domestic demand, and non-retail services due to higher labor costs resulting from the minimum wage adjustment the implementation of the labor reform, and the reduction of the working hours per week. In this scenario, inflation is expected to end 2025 around 5.3%, above the 2024 level. As a consequence, and pending the definition of the 2026 minimum wage, the central bank has kept its benchmark interest rates stable at 9.25%. This level could remain for much of 2026 if inflation and its expectations do not show significant improvements. For the time being, interest rates remain restricted, as the central bank acknowledges, especially for investment. While for households, a limited impact is expected, since the positive trend in consumption is based mainly on resources other than credit. On the fiscal front, favorable global financial conditions for emerging economies, debt management operations, and stronger normal GDP growth will reduce interest payments to between 3.2% and 3.8% of GDP compared to the 4.7% of GDP projected in the medium-term fiscal framework. However, the primary deficit, which excludes interest payments, will approach historical highs, exceeding 3% of GDP and above the 2.4% projected for the global trading world. If this occurs, the deficit will only be surpassed by those observed during the local crisis at the end of the 1990s and the pandemic. Despite the challenging state of the public finances, Between the end of June and September, the exchange rate fell from 4,102 pesos per dollar to 3,970 pesos per dollar, following the global weakening of the dollar. Furthermore, the government's monetization of dollars obtained from operations with international banks, the total returns dropped, and external bond issuances lent the Colombian peso to become the best-performing currency in Latin America. Given that the government still has dollar excesses balances and expects to issue new bonds for up to 5 billion euros and obtain direct credit from international banks for up to $1 billion, monetization will continue to impact the exchange rate. Ultimately, these flows would offset the effects of electoral uncertainty, which is expected to increase as the elections approach. Finally, the current account deficit is expected to widen from minus 1.8% of GDP in 2024 to minus 2.6% of GDP in 2025, driven by a stronger recovery in imports than exports. both in goods and services, where terms of trade would be affected by lower commodity prices. It's important to note that for the first time ever, remittances surpassed oil exports as the economy's main source of foreign currency. This further strengthens the diversification of the export basket. To sum it up, it is important to highlight that we are currently at the beginning of the congressional and presidential elections, which will be held in the first half of 2026. It is too early to draw conclusions about the election results, but the economic scenarios are based on the expectation that Colombia will have a government that will need to be more fiscally disciplined, promote private investment by reducing uncertainty, and generally make public policy decisions that promote economic growth. That will be all for my part.

Thank you. Thank you, Camilo. Moving to financial results, our financial performance continues to improve with net income for the quarter reaching 521 trillion pesos, resulting in an 11.5% return on equity. The improvement throughout this cycle has been driven by consistent positive trends in the core business metrics of our banking segment. In addition, Port Benil was a strong contributor to our quarterly results. Gross loans and deposits grew 2.1% and 0.4% over the quarter, reaching 4.6% and 8.5% over 12 months. Consumer loans had the strongest quarterly growth in 10 quarters at 1.5%. As we had anticipated in our last poll, commercial loan dynamics recovered significantly, growing 2.1% during the quarter. The strong performance in commercial lending includes benefits from the joint efforts of our banks with a wide banca inversión. PESOA-denominated commercial loans grew 3.1% over the quarter, the fastest pace in the last eight quarters. Given our exposure to U.S. dollar denominated loans, the 3.6% appreciation of the peso over the quarter had a negative impact on growth metrics. Our net interest income grew 11.6% to 2.9 trillion pesos during the quarter, while our net interest margin improved to 4.3% Incorporated a consolidation on loans of 4.6%. 90 days DDLs were 3.37%, the lowest level since the fourth quarter of 2022. Our cost of risk for the quarter was 1.9%. During the quarter, our investment portfolios performed well, driving need of an investment. The performance of corporate needs stabilization reserve during the quarter was strong. Now, I would like to pass the call to Diego, who will give our results.

Diego? Thank you, Maria Lorena. I will start on page 1213 with a few charts showing the growth rate and quality of our loan portfolio relative to the rest of the Colombian banking system. For comparatively few reasons, these are unconsolidated figures under Colombian IFRS as published by the Supreme Tendency of Finance. Starting on page 11, for the 12 months ending in August 2025, commercial loans and mortgages for the system grew 0.8 and 5.8% in real terms while consumer loans contracted 2.4% in real terms. Year on year, AvantBank gained 56 basis points of market share in consumer loans, 188 basis points for mortgages, and lost 77 basis points in commercial loans. This yielded year-on-year market share losses of nine basis points in total loans. For the last three months, loans grew 1.6% in the system. This market growth begins to show signs of recovery, considering a 0.8% partly inflation. Mortgages grew 2.8% and commercial loans 1.1% in nominal terms over the quarter, while consumer loans maintain their growth trajectory with 1.7% increase for the quarter. On page 12, loan quality for both the system and VIAVAD banks showed an improvement during the quarter in most loan categories. Our banks continue to exhibit better loan portfolio quality than the system in gross loans, mortgage loans, and consumer loans. I will now move to the consolidated results of Grupo Aval under IFRS. On page 13, assets grew 7.2% year-on-year and 2.4% on the quarter to 344 trillion pesos. Fixed income investments, which account for 17% of our assets, reached 58 trillion pesos, growing 24% year-on-year and 9.3% on the quarter. Lost loans, which account for 59% of our assets, reached 203 trillion pesos, growing 4.6% year-on-year and 2.1% over the quarter. Growth metrics were affected by the 3.6% appreciation of the Colombian PESO strike by Andalina during the quarter and 6.1% over 12 months. This PESO appreciation reduced gross loan growth in 1.1 percentage points year-on-year and 0.6 percentage points quarter-on-quarter. PESO-nominated loans that account for 84% of gross loans grew 6.1% year-on-year and 2.8% year-on-quarter. While dollar-denominated loans, which account for 16% of gross loans, grew 3.4% year-on-year and 1.8% year-on-quarter in dollar terms. Given the appreciation of the Colombian peso, our dollar-denominated loans contracted 2.9% year-on-year and 1.8% quarter-on-quarter in peso terms. Although retail loans continue to drive our growth, commercial loans have shown positive assignments over the quarter. Consumer loans grew 4.1% year-on-year and 1.5% year-on-quarter. Federal loans grew and continued to recover, increasing 4.4% year-on-year and 1.1% during the quarter. Personal loans grew 7.6% year-on-year and 4% during the quarter. Other loans, 1.9% year-on-year and 0.1% during the quarter. And finally, credit cards contracting 3.4% year-on-year and 0.4% during the quarter. Mortgages continued to be underweighted to 18% year-on-year and 3.5% over the quarter. Finally, commercial loans expanded 2.2% year-on-year and 2.1% on the quarter. This incorporates a negative impact of the Peso appreciation at 1.4% percentage points year-on-year and 0.8% quarter-on-quarter. We expect our 2025 loan growth to be in the 4.5% area, incorporating a negative effect of the Peso appreciation on the dollar-denominated loans. On page 14, we present the evolution of funding and deposits. Total funding increased 8.1% year-on-year and 2.9% during the quarter. Their bank followings grew 19% year-on-year in line with the expansion of our investment portfolio and account for 8.8% of total funding now. Deposits that account for around three-fourths of our funding grew 8.5% year-on-year and 0.4% quarter-on-quarter. Our deposits to net loan ratio closed at 109%. On page 15, we present the evolution of our total capitalization, our 3.0 shareholders' equity, and the capital adequacy ratio of our banks. Our total equity increased 2.9% of the quarter and 5.6% year-on-year, while our 3.0 equity increased 3.7% of the quarter and 5.9% year-on-year. Total solvency ratio is an increase in all of our banks. On page 16, we present our names. Net interest income reached 2.9 trillion, increasing 20.6% year-on-year and 11.6% in the quarter, driven by the strong performance of our trading investment income. Part of the quarterly net interest income was offset by hedging and derivatives, and I will comment later when covering other income. Totally NIM increased basis funds to 4.35% quarter-on-quarter. Our consolidated NIMA loans expanded 21 basis points year-on-year and contracted six basis points during the quarter to 4.42%, while NIMA investments improved to 4.13%. NIMA loans incorporates a 60 basis points year-on-year expansion of NIMA retail loans to 5.9%, and a 13 basis points year-on-year contraction of NIMA and commercial loans to 3.28%. Focusing on our banking segment, Lehman Loans was 4.88% materially stable year-on-year. This incorporates a 41 basis points year-on-year increase in Lehman Retail Loans to 6.4% and a 39 basis points year-on-year decrease in Lehman Commercial Loans to 3.72%. The total name of our banking segment expanded 17 basis points from the quarter to 4.74% due to the same dynamics that affected our consolidated loan. On page 17, we present our yield on loans, cost of funds, and spreads. On a consolidated basis, the average yield on loans for the quarter decreased two basis points quarter to 11.7%, while the average three-month IVR fell six basis points to 9.2%. Our consolidated cost of deposits remain naturally flat during the period, while our cost of funds slightly increased by seven basis points quarter to 6.83%. The increase in the cost of funds is mainly attributable to a higher repurposition rent related to our fixed income business. Finally, the central bank kept its policy rate unchanged at nine and a quarter throughout the third quarter and made persistent inflationary pressures. We expect this level to remain over the following few quarters with rate cuts beginning by the end of 2026. On the page, Pages 11, 18 through 20, we present several low portfolio quality ratios. Starting on page 18, low portfolio quality further strengthened during the quarter. PEL metrics continued to improve in all categories. 30 APLs for the nation through the quarter reached 1,083,000,000 pesos, 23% lower than for the quarter 2024. 30 APLs were 4.64% lower a 17 basis points improvement over three months, and 113 basis points improvement over 12 months. 90 APDLs were 3.37%, a 15 basis points improvement over a quarter, and a 93 basis points improvement over 12 months. Commercial 30 APDLs were 4.29%, and eight basis points improvement quarter on quarter, and 110 basis points year on year. 90 APDLs were 3.67%, over the year. Consumer 30-day PDLs include 39 basis points over the quarter and 136 basis points year-on-year to 4.68%, while 90-day PDLs include 13 basis points during the quarter and 84 basis points year-on-year to 2.71%. Mortgages 30-day PDLs and 90-day PDLs include two basis points and five basis points respectively over the quarter. Finally, the ratio of charge-offs to average 90 APLs was 0.71%. On Stage 20, coverage measured as allowances for Stages 2 and 3 as a percentage of Stages 2 and 3 loans was 31.9%, increasing 28 basis points relative to a quarter earlier. The shareholder portfolio classified as Stage 1 grew to 89.1% while Stage 3 fell proven by improvements across all portfolios. On page 20, cost-of-risk net-of-recovery slightly increased this quarter to 1.9% in line with our expectations for the year. We expect 2025 cost-of-risk to be in the 1.9% area. Cost-of-risk net-of-recovery for consumer loans improved 33 basis points to 3.9%. This includes support one basis points improvement in personal loans and to 7.7, while cost of risk for payroll loans was 1.9%. Cost of risk net for commercial loans was 1%. On page 21, we present net fees and other income. Rusty income grew 11.8% year-on-year and 7.5% quarter-on-quarter. Net fee income increased 11.5% and 8% respectively over this time period. Both pensions and trust fees increased over the quarter due to high performance-based management fees driven by positive returns on financial markets. Banking fees increased 4.7% above loan growth. Our income from the non-financial sector was 88% of that reported in third quarter 2024 due to a lower contribution from the infrastructure sector. Finally, on the bottom of the page, The quarter-on-quarter decrease in operating income is mainly driven by career increase and effects, losses of $211 billion. These were mainly explained by hedging strategies of trading income in around our fixed income instruments. On page 22, we present some efficiency ratios. Cost of assets for a quarter was 2.7%, including nine basis points relative to a quarter earlier, and increased nine basis points year-on-year. Our quarterly cost-to-income improved 124 basis points to 50.7% over the quarter, driven by the positive performance of our NIM. Quarterly expenses fell 1.4% quarter-on-quarter and grew 10.3% year-on-year. General administrative expenses fell 0.8% quarter-on-quarter and grew 16% year-on-year. The year-on-year increase was driven by operating taxes, which account for 26% of this category, and explained 7.9% percentage points of the year-on-year growth in administrative expenses. Personal expenses grew 1.4% over the quarter and 4.8% year-on-year, well below the 9.5% increase in Colombia's minimum wage. Finally, on page 23, we present our net income and portfolio ratios. Achievement of net income for the quarter was 521 billion pesos, or 21.9 pesos per share, increasing 25.3% relative to the third quarter of 2024, the highest since second quarter 2020. Our return on average assets and return on average equity for the quarter were 1% and 11.5% respective. I will now summarize our general guidance for 2025 and 2026. For 2025, we expect return on average equity to be in the 10.5% area with low flow in the 4.5% area, with commercial loans growing in the 2% area and retail loans growing in the 8.5% area. This incorporates an expected negative impact of a threshold appreciation of 2 percentage points and commercial loan growth. We expect our consolidated NIM in the 4% area, with NIM on loans in the 4.5% area. NIM of our banking segment in the 4.6% area, with NIM on loans in the 5.1% area. cost of risk, net of recoveries in the 1.9% area, cost of assets in the 2.75% area, income from the non-financial sector of 85% for that of 2024, and fee income ratio in the 1% area. Now moving to our initial view for 2026, we expect loan growth in the 8% area with commercial loans growing at 7% and retail loans growing at 9%. Total NIM in the 4.3% area with demon loans in the 5.2% area. NIM of the banking segment in the 5% area with demon loans for the banking segment in the 5.6% area. Cost of risk, net of recoveries in the 2% area. Cost to assets, the 2.8% area. Income from the non-financial sector of 1.3 times that for 2025. A fee income ratio of 21%. Finally, we expect our 2026 return on average equity to be in the 12 to 12.5% range.

Thank you, Diego. Finally, looking ahead, 2026 will be challenging for Colombian businesses, particularly during the first part of the year. will bring political uncertainty that can be expected to bring volatility in the financial markets and delay investment decisions. In addition, the market consensus anticipates a high central bank real integration rate to prevail incorporating fiscal balance concerns and inflationary pressures due to a high minimum wage increase. Even though we recognize this to be a challenging environment, we remain positive for the continued recovery of the industries in which we operate. This view is supported on expectation of a sustained expansion of economic activity, a stable labor market, a slight improvement in asset quality, a reduction in average cost of funds relative to this year, and opportunities for further banking penetration resulting from the introduction of Brevi. In addition, we are working hard and focused on unlocking fundamental value supported on our strategic pillars. First, we expect to improve our presence in loans and deposits in the retail segment, adding to the segment and businesses where we already live, which will result in an improvement in lean and further We continue working on improving the alignment of the strategy and the culture of our banks around a more client-centric experience, further differentiation in target segments and products of each one of the business units, as well as the redesign and centralization of key processes in our Valor Compartido APC. We expect these elements to translate to a better customer experience, shorter innovation, cycles and time to market, and more competitiveness in our cost structure. We are committed to having a positive impact on the community and those we serve without losing focus on commercial and financial performance. Finally, regarding year-to-date share price performance, the price of our preferred shares has increased by 82%. 1.6 times that of the MSCI cold cap. Our ADR increased by 116%, 10.3 times that of the Standard & Poor's 500. We are evaluating several options to foster liquidity of our local shares and our ADR. On this front, we reached an agreement with J.T. Morgan. the depository bank of our ADR program to reduce by 80% the conversion cost of the issuance and cancellation of the ADRs in the United States. This measure will be effective starting next Monday, November 17, through next month, April 17, 2026. So now we are open to questions.

Thank you. We will now begin the question and answer session. If you have a question, please press star, then one on your touchtone phone. If you're using a speakerphone, you may need to pick up the handset first before pressing the numbers. Once again, to ask a question, please press star, then one on your touchtone phone. Our first question will come from the line of Brian Flores with Citibank. Please go ahead.

Hi, Tim. Thank you for the opportunity. The first question is more of a request. If you could repeat the guidance. I think if you focus only on general loan growth and ROE for 25 and 26, it would be great. I tried to catch it, but honestly, I have bad hearing, so apologies on that. On the second point, I wanted to ask you on the contribution from trading and other operating income. Do you think this is, these levels are sustainable? Because we have seen good contribution from these lines in the second quarter and also in this third quarter. So, just if we can think about these levels on a recurring basis. And my last question on your NEMO profile. It seems the NEMO loans is declining, but also the NEMO investments is increasing very healthily. So, also, how recurring do you think this is? Thank you.

Brian, I think those are great questions. Let me start with the easiest, and it is to recap our loan growth guidance. For this year, we are guiding into 4.5% with retail loans growing at 8.5% and 2%, and that 2% includes a relative negative impact of FX over our U.S. dollar linked loans. For next year, we're diving into 8%. We have similar growth on the retail front, retail growing at 9%, and commercial growing at 7%. 7% still seeing a combination of not having the negative impact and eventually having a positive income from FX, and then reflecting growth over the past few months, and I would say over the past quarters, recovering on that front. Then I think questions two and three are linked, and we're thinking on how to better transmit this to you guys. On the trading front, you have to read three lines when you look at our numbers. You have to look at what is happening in net interest margin, what is happening on the trading income, and what is happening on the real gifts front. That's why I emphasize during the call, that we had a negative effect from derivatives that affected the results on the fixed income front. What I'm giving to is when you take into account those lines, our performance has been strong. However, given that we're conservative there and we go hedged, we are trying to lock in the kind of returns that we're looking into. The area where we had an upside during this quarter was we had a very strong performance from Port Benil. We expect to continue seeing positive performance from Port Benil, but this was a particularly strong quarter. So all in all, that is going on in numbers. And the other question that you asked regarding the trends of PENSO, of loans and investments has been built an effect of having grown our fixed income portfolio that is in a relevant portion financed with repos. So we didn't want to change our methodology, but if you earmark the cost of those repos to fixed income, you see a better performance on the loan side. However, for comparability, we didn't want to move things around on each one of the quarters. To try to get to the substance of your question, what we're seeing is we are seeing an improvement in pricing of loans, and actually something that is built into our guidance is we're working on improving our mix, both on the asset side and on the liability side. So, you see in the guidance, we are working guiding into a better number for NIM for next year, but also a slightly worse number on the cost of risk side. What that is doing is it's bringing in that we've been growing more on some of the products that we hadn't grown in the past, and we're making a richer mix on the asset side. We're doing basically the same on the liability side, where we're growing our deposits from the retail base, from individuals, that is helping us progressively, and it's built into those numbers. So bottom line, we are positive on the evolution of NIMH. It's still shy of what were the stable numbers we used to run on before we saw this long cycle because of the central bank policy. But a lot of this is growth that is not dependent on central bank policy, what we're building in our numbers. Sorry for the long explanation, but I think you're Your questions were very relevant to understand how we're looking into the future.

No, it was very, very helpful. If I can, just a very quick follow-up. Can you repeat, please, the levels of cost of risk and ROE for both 25 and 26?

ROE for this year, 10.5% area, and for next year, 12 to 12.5% range. And cost of risk for this year, 1.9%, and for next year, 2%.

No, super clear. Thank you very much.

Our next question will come from the line of Diego Marquez with JP Morgan. Please go ahead.

Yeah, good morning. Thanks for the space for questions. So just a quick follow-up there on asset quality. So we're seeing most metrics improving cost of risk down at 1.9. similar to what you guided, just to get a sense on what these levels could reach and what you expect going forward. And also, a quick question on coverage. So, we saw stable 90-day MPLs ratios of 130%. So, what level should we work with going forward? Do you expect these to continue?

Thank you. Could you repeat your second question? I'm sorry. I'm not sure I got it.

Yeah, just on coverage. So we saw levels of 130%. It has been stable for the 90-day MPOs. So just going forward, what levels should we expect?

Okay. And your first question, I have to be shortsighted on the answer to this one because it's very macro-dependent for next year. We're looking in this area of cost of risk that built in that we're closer to ending the cycle of recovery. So that's why we're not including any substantial improvement or any relevant improvement in cost of risk as a measure. It depends very much on how further years look like, what our sustainable cost of risk would look like, but what this does is a growth shy of 3% for GDP in Colombia, a stable labor market, and a slight reduction in rates by the end of next year that should support that kind of level with a change in mix towards these kind of assets that I mentioned before. Then the coverage side is very much mechanics and how you provision under full IFRS, so it's not a target, it's a result. It depends on how our different stages are behaving, therefore, what kind of provisions we're making and our write-off policies. So this basically is showing that I would pay much more attention on a new PDL formation where you can anticipate how things are going to evolve into the future where the trend has been consistently positive for our banks.

No, very clear. Thank you, and congratulations.

Our next question will come from the line of Daniel Mora with Credit Corp Capital. Please go ahead.

Hi, good morning, and thank you for the presentation. I have a question. First one is regarding OPEX and efficiency ratios. How should we think about the synergies coming from a Valor Compartido? What will be the targeted efficiency ratio and the potential impact on ROE in 2026 and the years ahead? Because if I'm not mistaken, it seems that the guidance of cost to assets suggest an increase from 2.5% to 2.8%. So I would like to understand if OPEX will be in line with inflation or above or below. That will be my first question. And the second one is very short. I would like to understand the impact on interest expenses this quarter, especially the interbank borrowings. I would like to know what was behind that, and if this is one-off, or should we expect a similar impact going forward? Thank you so much.

Okay. Starting with your last question, I think that's in the line of Brian's question. What we've been doing over the past, few quarters is we've been increasing our position in FX and that position is being financed with repos and that's what is driving a repo position. So it has a repo financing, then investment in securities plus derivatives on top where we're locking in some of these results. So the reason why you see more expenses there is more volume That's the key driver tied to a larger positive carry on the other side of the balance sheet. Then regarding OPEX, Colombia is facing pressures for next year on the inflation side. We built into our numbers a minimum wage increase that could be in the order of 11%. So when you start out with a low growth, that is in the 8% area, and you take into account that you have a minimum wage plus inflation ending year at 5.3%, you have a pressure on expenses that begins there. Then the other part of your question, I think, is the most relevant thinking to the future, and it says, we've only begun to work on the Aval Valor Compartido initiative, We started with admin processes. Those processes are being implemented. There's some restructuring costs associated to those that delay in some way when you start seeing the net result of what is being done there. However, as Jorge Ocalvaro mentioned, We have a large aspiration there, and we're moving into our next phase where we're going to touch on back office and operational process over next year. And when we have additional information there, we can touch back on that to give you a better idea of what we expect to achieve.

And there are no further questions at this time. Ms. Maria Lorena Gutierrez Botero, I turn the call back over to you.

Okay, thank you to your attendance at today's conference call. This is the last time we meet in 2025, so see you next year. I wish you all a happy holiday season. Merry Christmas. Happy New Year. So thank you for being with us.

Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect. Thank you.