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

Welcome to Grupo EVAL's first quarter 2026 Consolidated Results Conference Call. My name is Regina, and I will be your operator for today's call. Grupo EVAL Acciones y Valores SEA, 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. Details of the calculations of non-IFRS measures, such as ROAA and ROAE, among others, are explained when required in this report. On November 27, 2025, Banco de Bogotá subsidiary Multifinancial Holding Inc., MFG, entered into a share purchase agreement with BAC International Corporation, BIC, a subsidiary of BAC Holding International Corp., for the disposal of 99.57% of the issued and outstanding shares of Multifinancial Group Inc., MFG, the parent company of Multibank Inc. On March 18, 2026, After obtaining the required regulatory authorizations and fulfilling all agreed conditions precedent, the transaction was completed. For comparability purposes only, we have prepared and present supplemental unaudited pro forma financial information for the periods prior to 4Q25, which reflects the reclassification of the operations relating to MFG as noncurrent assets and liabilities held for sell and discontinued operations. This supplemental unaudited pro forma financial information is not intended to represent and should not be considered indicative of the results of operations or financial position that would have been achieved had the transaction occurred on the dates assumed, nor is it intended to project our results of operations or financial position for any future period or date. The pro forma financial information is unaudited, and the completion of the external audit for the year ended December 31, 2025, may result in adjustments to the unaudited pro forma financial information presented herein. 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. 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 financial statements of Grupo Global Acciones y Valores S.A.A., in accordance with Colombian regulations, must be filed with the market and with the Superintendency of Finance with the opinion of an external auditor. At the time of this solicitation, this process is still ongoing. 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 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 first quarter 2026 conference call. I am here with Diego Solano, our CFO, Camilo Perez, Chief Economist of Banco de Bogota, and Jorge Castaño, VP of Financial Assets and Efficiency. Before turning to our financial results, I would like to highlight two significant corporate developments of the quarter. First, on March 18, Banco de Bogota completed the sale of 99.57% of MFG's $464 million, concentrating on its strategic focus and strengthening its capital position. I am pleased to announce the appointment of Juan Carlos Echeverri as an incoming CEO of Banco de Bogota, whose leadership we are confident will drive the next chapter of the bank's strategy. Our tributary net income reached 336 billion Colombian pesos, a decrease of 2.3% compared to the first quarter of 2025. During this quarter, we recorded the equity tax, which amounted to 312 billion Colombian pesos in operating expenses, with a 210 billion Colombian pesos impact in accrual net income, reducing the quarter's ROAE by approximately 457 basis points. Excluding this one-time effect, our underlying performance reflects improving trends across our businesses. Acquired was characterized by improving asset quality and cost of risk, a strong contribution from our non-financial sector, and continued progress on operational efficiency. Funding cost pressures driven by the renewed tightening cycle and the impact of the equity tax were the main headwinds. This is also a strategically significant quarter for Grupo Aval. We launched our 2026-2031 corporate strategy, a long-term framework that reflects our ambition to increase our relevance in the market where we operate to capture efficiencies and deploy technology in a structured and disciplined way and to generate real impact for all of our stakeholders. Our strategy is organized around three core axes, relevance, opportunities, and impact, and materialized through 10 strategic pillars that we orient our evolution as a group over the next five years. Under the relevance axis, We are focused on strengthening our leadership position, deepening client centricity and optimizing capital allocation. Under opportunities, we are accelerating efficiency and standardization, leading digital transformation and turning data and artificial intelligence into competitive advantage. Under impact, we are committed to developing our challenge of holding the highest standards of corporate governance and risk management and ensuring that our growth generates a positive impact for society and the environment. This strategy is a shared commitment across Grupo Aval to consolidate our position as Colombian leading financial group. Now, I would like to invite Jorge Castaño, our VP, to share our advancements and other strategic matters. Jorge?

Thank you, Maria Lorena, and good morning, everyone. Turning to the first pillar that Maria Lorena mentioned, profitable business, the purchase and assumption transaction of Itaú's personal banking business by Banco de Bogotá marks a defining moment in Grupo Aval's retail banking strategy. Once fully executed, this transaction is expected to deliver $3.3 trillion in consumer portfolio growth, equivalent to 34 months of organic expansion, while adding 3.2 trillion pesos in mortgage lending, positioning Banco de Bogota in third place in the Colombian housing market with a 12.8% market share. On the deposit side, we expect personal deposits from individuals to grow by 4.1 trillion pesos, representing around 20 months of accelerated organic growth and reaching a high of 9.3% market share. On the client side, the bank will add around 277,000 customers, double its premium segment with 35,000 new high-value clients, and expand the preferred segment by 60%, adding 97,000 clients. Taken together, these results confirm that this transaction is just a growth initiative. It is a structural repositioning of Banco de Bogotá as a relevant force in Colombian retail banking, a unique opportunity to upgrade and relaunch its personal banking business, and a key step in its evaluation as a universal bank and flagship entity of Grupo Aval. We are expecting to receive regulatory authorization from both the competition authority and the financial regulator within the coming weeks. Once clearance is obtained, Banco de Bogotá is fueled, prepared to execute a disciplined 90-day integration roadmap. The operational groundwork, COVID-insisted convergence, client migration protocols, and commercial team alignment is being developed in parallel with the regulatory process, ensuring zero lag between approval and execution. The Panama operations comprising a $6.8 million loan portfolio and $140 million in deposits will be incorporated in the Consolidate Balance Sheet with the same window, reinforce capital efficiency and cross-border synergies from day one. Now, turning to Aval Fiduciaria, our asset management entity, the company successfully completed its integration process on January 2, 2026, establishing a strong foundation with 198 trillion pesos in assets under management, a platform of 33 collective investment funds and 5,700 trust mandates. This milestone is further validated by the highest counterparty risk and portfolio management ratings given by Fitch Ratings and subsequently reaffirmed by S&P Global, reflecting the institution's commitment to operational excellence and investor confidence. During the first quarter of the 2026, Avalfi Luceara reinforced its industry leadership. The company hosts a 19% market share in commissions, With revenue growing by 12.5% to reach 151.4 billion pesos, assets under management grew 4.4 billion pesos, assets under management grew 4.2% in the quarter to 206.5 trillion pesos. With collective investment funds gained 149 basis points of market share to reach 22.3%, capturing more than half of total market growth. The client base 4.7% expanded in the quarter and 13% year-over-year. On profitability, the company boasts a ROE of 33.0% with net income of $22 billion for the first quarter. Operational efficiency improved materially as well, bringing the cost-to-income ratio to 65.0% and improvement of close to 10.0%. Looking ahead, Avanzi Luceria continues to execute under its Destino 2031 strategy, highlighted by a collaboration with BlackRock to the Metal Etidida solution, which gives Colombian retail investors access to balance global ETF portfolios, alongside continuing investment in digital channels to democratize access to its full product suite. Now let me turn to our payment leadership business, GoPayment. The company continues to strengthen its position as Grupo Aval's interoperable payment and value-added service platform. During the period, GO secured two critical regulatory milestones, certification from the financial superintendents of Colombia and authorization from Banco de la República to operate with the private ecosystem. Commercial traction is already busy. Controlled pilots have engaged more than 120 users in initial phase, designing to validate performance ahead of full rollout. On the collection side, Go is enabled to prep by a bulk pattern across its existing base of 22,000 active agreements in a bulk pay center, while 635 corporate clients with specialized integrations are currently progressing to final development and implementation, representing a significant near-term revenue opportunity as interoperable connections accelerate across the ecosystem. Underpinning this growth is a proprietary technology platform built to the highest standard of security, resilience, and operational capacity capable of delivering value-added products, products, and services to both financial and non-financial institutions. Finally, we are strengthening both the organizational structure and the executive team, bringing in senior professionals with a proven track record and a strong recognition across the free tech payments industry. This investment in talent and infrastructure is designed to ensure best-in-class product development and the most effective commercial rollout possible as GoPayments moves toward full-scale deployment. Finally, turning to the efficiency segment, a central pillar of our 2026-2031 corporate strategy is the capture of efficiencies and synergies across the group through our shared service center, AVC. In procurement, we have already taken over processing Banco de Bogotá, Banco Occidente, Avevillas, GoPayments, and Aval Valor Compartidos. During the second quarter, we will take over Banco Popular, Aval Fiduciaria, and Grupo Aval Holdings. and we aim to close the year with their tally for veneer and coffee Colombiana and its subsidiaries. This center will operate on a controllable spending base of 1.4 trillion pesos, and for 2026, we have a savings goal of 62 billion pesos. Most of our contractual renovations are during the fourth quarter, for which we project 32 billion pesos in savings, equivalent to a 9% annual savings rate over the controllable spending base. In technology, During the second quarter, we began implementing a unified cloud migration roadmap for Group A1. This initiative will optimize our technology infrastructure, including data centers and modernizing technical communications network across the group. In property management, we have already taken over and installed our four banks and Coffee Colombiana. This center managed a 720 billion pesos portfolio of assets with a target to raise the commercialization rate from 27% to 37% by year end. In human talent, we manage payroll for 40,000 employees. In attraction and selection, we are managing an average of 750 multi-openings with an internal satisfaction score of 4.7 out of 5. We are also targeting a reduction in average time to fill from 24 days to 22 days. And in physical challenge and security, ABC oversees and has taken control of 4,110 properties across our banks, establishing an automation program through the network. That concludes my segment. Across every pillar we discussed today, Grupo Aval is executing with discipline and building the foundation for sustainable, profitable growth. Back to you, Maradona.

Thank you, Jorge. Now let me walk you through the key economic developments of the world. The global environment has grown more complex since our last fall. The escalation of the conflict in the Middle East has introduced a new layer of electrics. especially in oil prices and global supply chains. These dynamics are moderating global growth prospects for 2026. On the domestic front, GDP growth decelerated to 2.3% in the fourth quarter of 2025, down from 3.4% in the third quarter, as private consumption moderates, and investment fraud declines, and it is deteriorating investor confidence. Early 2026, data reaffirms these trends. According to Daniel's economic activity indicators, the economy grew just 1.5% in the January-February period, driven almost entirely by the service sector. We expect a 2026 full-year GDP growth of approximately 2.4%. On inflation, price pressures have increased. Annual inflation reached 5.68% in April, 2026. It's higher reading since September, 2024. We project inflation at 6.2% for 2026 with a gradual return toward the 4% range expected by 2028. The central bank raised the policy rate by a cumulative 200 basis points during the first quarter, above market expectations and what was priced into the IDI. With these increases, the rate reached 11.25% at the end of March. In its most recent April meeting against Against March's expectation, and with a tense relationship with the government, the Central Bank's board unanimously decided to maintain its intervention rate. This was the last race decision meeting before the first and second presidential election rounds. As of March, the Colombian peso has expressed nearly 13% over the past 12 months supported by a strong remittance inflows and a broadly weaker U.S. dollar, helping contain inflation on the input side. Camilo will elaborate on our economic outlook. Camilo?

Thank you, Medela Lorena. Good morning to everyone. The Colombian economy registered growth slightly above 2% in the first quarter of the year, marking its slow expansion rate in a year and a half as a result of the weakening of several key sectors. In particular, the performance of the agriculture, mining, manufacturing, and construction sectors largely explains the low growth. In the absence of investment, private consumption and public spending have consolidated at the driving forces of the Colombian economy. For households, in a scenario of double-digit weight growth and lower inflation for goods than for services, families have maintained their standing levels of durable goods, with some sectors of industry and commerce being the biggest beneficiaries. Meanwhile, despite this moderation due to the rapid increase in prices, household consumption of services remains positive, favoring sectors such as lodging and food services, entertainment, and professional activities, among others. Given that household spending is driven by income levels and not necessarily by borrowing, the financial sector continues to experience low growth. In fact, the continued weakness in investment due to elevated uncertainty and higher interest rates poses challenges to the sector's performance. For the remainder of the year, amidst the impact of the war in the Middle East, tighter local financial conditions, a prolonged period of challenges for key sectors, and electoral uncertainty, the Colombian economy is expected to grow 2.4%. Turning to prices, inflation rebounded from 5.1% at the end of 2025 to 5.7% in April 2026 due to increased pressures in non-rental services, food, and goods. For the remainder of the year, the upward trend in inflation is expected to continue due to the like effect of the minimum wage increase. higher energy commodity prices resulting from the conflict in the Middle East, the arrival of El Niño, and the potential depreciation of the peso. Inflation is expected to end 2026 at around 6.2%, before slowly moderating toward the target starting in 2027. On the fiscal front, a slight improvement is projected compared to the previous year. In 2026, for the first time in four years, the government is expected to meet its revenue targets thanks to the adjustment made to its financial plan. Regardless of spending, the failure to approve the 2025 financing law would force the government to implement a $16 trillion expenditure cut if it cannot secure sufficient revenue to support it. However, this cut will be insufficient to improve public finances. Thus, a primary fiscal deficit of 3.1% of GDP is estimated for 2026, lower than the 3.5% of GDP observed in 2025, representing a marginal improvement that does not alter the structural situation of the fiscal front. In fact, Standard & Poor's lower Columbus rating from BB to BB-, adjusting the outlook from negative to stable. Given the improvement in revenue and a containment of spending, the government has had sufficient liquidity to implement debt management operations, including dollar purchases to close the total return swap, repurchases and redemptions of domestic and external debt, as well as internal debt swaps. Thus, the performance of several local assets has been influenced by the government actions, particularly the exchange rate. public debt, and liquidity. Against this backdrop, with inflation and inflation expectations rebounding and the fiscal situation remaining vulnerable, Banco de la República raised its interest rate by 200 basis points in the first quarter to 11.25%. In a clash with the government and amid a political uncertainty surrounding the elections, the central bank's board unanimously opted to fund the rate-hiking cycle in April, though this not only implied the end of the adjustments. the central bank would have additional room to increase its interest rate between 50 basis points and 100 basis points, which would bring the benchmark rate to around 12.25% by the end of the year. With a scenario of higher domestic interest rates and a favorable result of the March legislative elections, which confirmed the absence of absolute majorities in Congress, the local exchange rate extended its downward trend, reaching its lowest level since 2021, near $3,500 per dollar. However, This trend was contained by dollar purchases made by the government. Likewise, the uncertainty surrounding the presidential elections delivered the appreciation trend of the colonial best. Ultimately, the election results are increasingly becoming the main catalyst for the future of the country's economy and institutions, although high uncertainty persists just days before the first round. In a potential second round, the results appear quite close. So only after the election will the proposed macroeconomic scenario be validated. Back to you, María Lorena.

Thank you, Camilo. Turning to our financial results, gross loans in March of 193.6 trillion Colombian pesos, increasing 6% compared to 2025, and deposits reached 216.8 trillion Colombian pesos, increasing 11.7% over the last 12 months. The central bank's strong shift toward a more restrictive monetary policy and the higher yield on Colombian sovereign debt have pressured our consolidating funding costs. Our banks have closely followed reviewing pricing adjustments and setting actions plans to navigate this environment. We continue to make progress in growing our state funding base which provides a more stable and cost-effective source of funding. Notably, the spread between yield on loans and cost of deposits in our banking segment held steady at 5%. Regarding our non-banking subsidiaries, Polvenir delivers strong results despite significant volatility in both the equity and the fixed income market. For FICO Lombiana, had a strong quarter as well, boosted by seasonal dividends, a high inflation expectation for 2026, which benefited revenues from the infrastructure sector. Now I would like to pass the call to Diego, who will give you details of our results.

Diego? Thank you, Maria Lorena. I will start on pages 9 and 10 with a few charts showing the growth rate and the quality of our loan portfolio relative to the rest of the Colombian banking system. For comparability reasons, these are unconsolidated figures under Colombian IFRS as published by the Superintendency of Finance. Starting on page 9, over the 12-month period ending on February 2026, the rest of the banking system continued to gain momentum. Growth for the system was primarily driven by large corporates, institutional, and government in the commercial loans, and buy unsecured products in the consumer loans sector. Our strategy remains consistent. We have deliberately prioritized portfolio quality and risk-adjusted returns over volume growth. We have focused on local currency commercial loans and personal loans and credit cards in the consumer segment. We continue to be selective in corporate commercial loans given the aggressive pricing competition currently present. Our PESO-nominated commercial loans market share increased by 10 basis points year-on-year to 26.3% and remained flat over the quarter. Regarding our dollar-denominated commercial loans, where we have historically been overweighted, we reduced our market share by 231 basis points to 36.8%. In addition, in peso terms, the balance of our dollar-denominated commercial loans were negatively impacted by an 8.9% appreciation of the Colombian peso over the year. As a result of the above, our market share for commercial loans fell 15 basis points over the year and increased three basis points over the quarter. In consumer loans, to reduce rate sensitivity, we continue diversifying our portfolio towards higher yielding and shorter-term loans, reducing our concentration in payroll lending. We gained 147 basis points of share in personal loans year-on-year and 49 basis points over the quarter, raising our market share to 22%. The Itaú Consumer Business Acquisition will take us to market weight in personal loans. As part of the effort to reinvigorate our credit card business, where we lost 11 basis points in the quarter and 151 basis points year-on-year, we launched the Visa FIFA Alliance. The Itaú Consumer Business Acquisition will add two percentage points of share in credit cards to the 17.3% we held at the end of this quarter. We maintain a leadership position in parallel lending with 41.7% market share. We reduced our sharing in parallel lending 49 basis points over the quarter, accumulating 128 basis points year-on-year. Overall, our market share for consumer loans closed at 28.7% with a 17 basis points decrease over the quarter and 98 basis points decrease year-on-year. Moving on to mortgages, we continue to gain market share with 12 basis points increased over the quarter and 89 basis points year-on-year. As a result of the above mentioned, we closed our market share of all loans at 25% stable over the quarter and 30 basis points lower than a year earlier. On page nine, on page 10, sorry, loan quality for both the system and the AvalBanks continued to show an improvement across all loan categories. Our banks continue to exhibit better loan portfolio quality than the rest of the system in all categories. I will now move to the consolidated results of Group Aval and the IFRS starting on page 11. Assets grew 2.4% of the year to 338 trillion pesos and contracted 3.2% of the quarters impacted by the divestiture of MFG excluding the MFG assets in quarter Early and annual growth were 2.1% and 9.2% respectively. In terms of mix, other assets, which include the assets held for sale related to MFG during the fourth quarter of 2025, declined 17.1% to 12.5% of total assets in first quarter 2026, as MFG assets were recognized following the completion of the divestiture. bottom of the page gross loans grew six percent over the year and one and a half percent during the quarter our peso denominated loans increased eight percent and two point two percent respectively commercial loans grew five percent year and year and one point six percent over the quarter peso denominated commercial loans grew eight point six percent year and year and two point nine percent quarter and quarter while us dollar denominated commercial loans grew point one percent year and year and decreased three point three percent Our dollar-denominated loans account for 8.1% of our total portfolio after the MFG divestiture and come primarily from the U.S. agencies of Banco de Bogota, our trade finance activities, and the offshore subsidiaries of Banco de Bogota and Banco de Occidente. These loans were affected by an appreciation of the Colombian peso of 12.7% year-on-year and 2.6% quarter-on-quarter. Consumer loans grew 4.2% year-on-year and 0.5% during the quarter. grew 0.8% year-on-year and contracted 0.5% over the quarter. Personal loans that account for 27% of our consumer loans grew 14.1% over the year and 3.5% during the quarter. Credit cards that account for 11% of our consumer loans grew 1.2% year-on-year and contracted 0.4% quarter-on-quarter. Automobile loans that account for 7% of our consumer loans increased 1.3% year-on-year and 0.5% quarter-on-quarter. Finally, mortgages grew 16.8% year-on-year and 3.5% over the quarter. On page 12, we present funding and deposit evolutions. Total funding reached 281 trillion pesos, growing 8.9% year-on-year and 1.9% over the quarter. Total deposits, which account for around three-fold suffered funding, grew 217 trillion pesos, grew to 217 trillion pesos, at 11.7% year-on-year and 4.5% during the quarter. Saving deposits showed the overall deposit performance and gain shared in our mix. Savings deposits grew 17.8% year-on-year and 6.2% during the quarter, a strong performance that reflects our continued efforts to deepen our retail funding business and diversify our funding mix. Our deposits to net loans increased to 116%, responding to higher volatility. This further pressed our NIM, adding to the challenge in benchmark rate increase. On page 13, we present the evolution of our total capitalization, our total shareholders' equity, and the capital and equity ratio of our banks. During the quarter, 755 billion pesos were declared to our shareholders. In addition, $708 billion pesos of dividends were declared to the minorities at our subsidiaries. As a result, our total equity increased 3.3% over the quarter and increased 3% year-on-year. Our attribute of equity increased 3.5% over the quarter and increased 3.6% year-on-year. Total solvency and tier 1 ratios were relatively stable in most of our banks. The case of Banco de Bogota, the increase in solvency reflects the derecognition of the risk-weighted assets coming from MFG after the sale was completed. In addition, Banco de Bogota and Banco de Occidente's solvency ratios reflect dividends distributed during March. On page 14, we present our NIM. Net interest income reached 2.2 trillion in the first quarter of 2026. and decreasing 4.1 compared to the first quarter of 2025. Total Neiman increased 39 basis points to 3.34%, quarter and quarter, and decreased 45 basis points year-on-year. Our consolidated Neiman loans contracted to 4.4% during the quarter, down from 5.05 in fourth quarter 2025, mainly driven by the ongoing repricing of our cost of funds in response to higher rate environments. Our NEMA investment recovered to 0.25%, up from negative 3.1% in the fourth quarter of 2025, reflecting a mild recovery in the local capital markets. The quarter was also marked by a strong performance from FX and derivatives that completed our bank's trading strategies. Focusing on our banking segment, the total NEMA of our banking segment expanded 31 basis points over the quarter, protected or consolidated new Neiman loans was 4.98 percent decreasing 55 basis points quarter and quarter this incorporates a 69 basis points quarter and quarter decrease in Neiman retail loans to 6.47 percent and of course 46 basis points quarter and quarter decrease in Neiman commercial loans to 3.86 percent the timing is matched between a cash and repricing liabilities and assets is the primary driver of NEMA and loans compression after this quarter. This effect will partially be reduced as commercial floating loans reprice with a lag of a few months. In addition, we have a relatively high liquidity profile to position our banks to eventual volatility, further pressing our NEMA. On page 15, we present yields and cost of funds. Interest rate dynamics on our loans and funding are driven by the movements in the average benchmark rate in Colombia. The average central bank intervention rate increased approximately 100 basis points during the first quarter, while our consolidated cost of deposits increased 16 basis points to 6.75%. On pages 16 through 18, we present several loan portfolio quality ratios. On page 16, credit quality continues to improve during the quarter. 90 day PDLs were 3.38%, a 16 basis points improvement relative to the last quarter, and 68 basis points over 12 months. 30 day PDLs were 4.3%, a seven basis points improvement over three months, and 94 basis points over 12 months. PDL formation continued to decelerate. New 90 day PDLs in the quarter were 766 billion tests. The coverage ratio at 90 day PDLs strengthened to 137% up from 134% during fourth quarter 2025. Commercial 30-day PDLs were 3.86% at two basis points increased over three months. 90-day PDLs were 314 basis points decreased over the quarter. We reported an 18 basis points decrease in consumer 30-day PDLs from 4.49% and 90-day PDL decrease of 21 basis points to 2.58%. Mortgages, 30 APDLs and 90 APDLs improved 26 basis points and 19 basis points quarter-on-quarter. Finally, the ratio of charge-offs to average 90 APDLs was 0.54 times. On page 17, the share of our loan portfolio classified as stage 1 consideration improved, reaching 90.3% of the total portfolio up from 89% in first quarter 2025 and percent in for quarter 25, reflecting the ongoing improvement in credit quality across all sectors. The allowances for stages 2 and 3 as a percentage of loans classified as stages 2 and 3 was materially stable in the quarter for total loans. On page 18, our net cost of risk was 1.8 percent, increasing six basis points quarter 4.1% in the quarter, a slight uptick from 3.8% in fourth quarter 2025, driven primarily by credit cards. Net cost of risk for commercial loans remain contained at 0.7%. On page 19, we present net fees and other income. Gross fee income grew 6.9% year-on-year and decreased 1% quarter-on-quarter. Net fee income increased 10% and decreased 0.7% respectively. Rusty income was driven by a 5% increase in banking fees, 6.9% in pension funds, and 14.3% in trust activities. Income from the non-financial sector was around 1.3% times of that reported during the first quarter 2025 due to the positive impact of higher inflation and concession revenues. Energy and gas contributed $255 billion broadly in line with previous periods. Finally, on the bottom, of the page, the year-on-year increase in operating income is mainly explained by lower derivatives and FX gains, by higher derivatives and FX gains. Net income from other financial instruments at fair value decreased 92 billion from 348 billion pesos. Due to the one-time fair value recognition of 303 billion pesos related to the probably gas pipelines during the fourth quarter, previous call. On page 20, we present some efficiency ratios. Total other expenses reached 2,565 billion pesos between first quarter 2026, increasing 20.3% year-on-year, and 6.4% quarter-on-quarter. This is largely explained by the equity tax, which was recorded under general and admin expenses and accounts for 312 billion pesos. Without the impact of the equity tax, OPEX grew 5.7% year-on-year and decreased 6% quarter-on-quarter versus a seasonally high fourth quarter. Underlining expense growth remains moderate and broadly in line with our cost control targets. Operating taxes exclude the equity tax accounted for 22.9% of total expenses. Personal expenses increased 5.1% year-on-year to 830 billion pesos impacted by the 23% minimum wage increase on part of our workforce. Cost to assets for the quarter was 3%, including a 36 basis points negative impact from the equity tax and remained stable year-on-year at 2.6% when excluding this expense. quarterly cost to income improved to 53.9 percent mainly due to higher income from the non-financial sector and net fees excluding the equity tax cost to income was 47.3 percent following the same drivers finally on page 21 we present our net income and profitability ratios attributable net income was 337 billion pesos for 14.2 pesos per share this includes $351 billion from continuing operations and a net loss of $15 billion related to these continued operations. The equity tax had a negative impact of $210 billion on our attributable net income during the quarter. Excluding this one-time impact, our net income from continuing operations would have been $561 billion. Our return on average assets and return on average equity for the quarter were 0.9% and 7.4% respectively. Excluding the effect of the equity tax, return on average assets and return on the average equity would have been 1.2% and 12%. I will now summarize our general guidance for 2026. We expect loan growth in the 9.5% area with commercial loans growing in the 6.5% area and retail loans growing in the 14% area. Our consolidated NIM in the 3.9% area with NIM on loans in the 4.4% area. NEMA for banking segment in the 4.8% area with NEMA loans in the 5.2% area. Cost of risk net of recovery in the 1.9% area. Cost to assets in the 2.85% area incorporating a nine basis points impact of the equity tax. Income from the non-financial sector of 1.3 times of that for 2025. A fee income ratio in the 20 in the 22 percent area finally we expect our 2026 return and average equity to be in the nine and a quarter area incorporating 114 basis points impact from the equity tax thank you diego before moving into questions and answers i would like to share some final thoughts on colombia and grupal in 2026.

The environment we are navigating in 2026 is an undeniable complex with political and electoral uncertainty, persistent inflation and a renewed monetary tightening cycle, and a challenging global backdrop. We have the experience and the tools to navigate it, and we are better positioned today than we were at the start of the previous cycles. Our balance sheet is more resilient, as shown by the diversification of our loan portfolio and our funding structure. We have decreased the duration of our loan book, which will enable us to reprice the cycle faster than before. On the funding side, we have reduced maturity and repricing gaps, growing in segment less sensitive to interest rates. We have reduced interest rate risk sensitivity using interest rate swaps among other derivatives tools. On profitability, we expect our ROAE in the 9% and 9.5% area for the year incorporated. The 114 basis points, negative effect of the equity tax, and second, the impact of tightening cycle on our NIM team over the following words. Looking ahead, our path is clear. We will deepen our relevance with clients, accelerate the capture of efficiencies through technology and operational integration, and continue unlocking the value of our non-financial businesses through Corfi Colombiana. All of this is anchored in our 2026-2031 corporate strategy, our roadmap to consolidate Irupabala's Colombian leading financial group. Colombian financial sector will continue to be a pillar of trust and investment regardless of the political cycles. Group O and we continue playing that role with discipline and a long-term perspective. Now we are open for questions.

Thank you. We will now begin the question and answer session. If you have a question, please press star then the number one on your touchtone phone. If you wish to be removed from the queue, please press star then one a second time. If you are 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 to ask questions. I have a first one. It's a clarification on the guidance. Just wanted to check with you. If you mentioned that the group's name on loans for the year is expected at 4.4, which is the level you finish this quarter. I think that's my first question. Depending on the answer, I have a follow-up.

The answer is yes. It is 4.4%.

Okay, perfect.

Go ahead.

Go ahead, please.

Go ahead.

No, I just wanted to understand, so how should we understand the positioning of the group in the cycle, right? Because the NIM level is coming from 4.6, went all the way to 5. So should we understand that now the sensitivity is a bit lower in the sense that as rates have continued to go up, you will have maybe muted effects on the NIM. Just wanted to clarify that.

Yeah. Brian, I think that the best way to think about it is throughout the year, given that you're going to see volatility throughout the next few quarters. The reason for this volatility is that repricing is matched between assets and liabilities. For example, in this quarter, we had... strong repricing of our liability side and very mild on the asset side. What we started to see at the end of the quarter that will reflect on the next quarter is a recovery of NIM. However, we do expect, as Camilo mentioned before, further central bank actions. By the way, the central bank action, the last one, that hasn't been yet reflected or did not reflect in the first quarter because it happened at the end of the first quarter. So we're going to see that happening. And that might also press the third quarter moving forward. So that's the reason why I would say, again, that you're going to see volatility in the repricing process. I would stick to what to expect on average during the year.

Okay, perfect. And then another clarification on the guidance. You mentioned the ROE for the year, your expectation is 9.25 with 14.14 pips impact from the equity, from the wealth tax, right?

Yes. And before moving to that, I think you also asked regarding positioning, and I want to emphasize something that Maria Lorena mentioned, and it is over these past years, we've been rebalancing our portfolio actively as well as our deposit side. Part of what we've done, and let me repeat part of what I said during the presentation, is to lower our exposure to payroll lending and increase our exposure to products on the retail side that price much faster. We also have reduced our position in dollar-denominated assets that have a lower NIL. to try to enhance our name on the asset side. And the liability side, even though it takes much longer to be able to see consequences of what we're doing, we're strongly working on the retail side deposits. So regarding positioning, trying to summarize what I said is we expect this to be a milder cycle than what we saw the last time around where we were much more liability sensitive than what we currently are. then a regarding a i'm going to try to summarize what we're getting into basically you might have seen that there were some changes that we did in our guidance but some of them compensate what we will kill from the equity tax and also the pressure from the central bank actions um I would say roughly we already have a clear view on how to compensate at least half of what happened from the equity tax and continue to work actively in trying to compensate the rest. So our guidance for efficiency actually is not bringing down or being affected by the full impact of the equity tax, but it already has around roughly half of that compensated. On the other hand, we are building in a tougher interest rate environment than what we expected before. Also, we're building in more liquidity in our balance sheets preparing to the electoral volatility. You might imagine that this liquidity is very expensive because it has basically a zero NIM or slightly negative NIM that has affected us during this quarter. perhaps after the electoral cycle, we might loosen that position. But we're seeing a tougher environment. However, we have a few positives. One of the positives here is our cost of risk continues to behave better than what we expected before that's coming in. And as I mentioned before, we're also working strongly on the efficiency side, and you saw Jorge Castaño's presentation that focused on actions rather than the actual results, but these are the actions that will lead us to these kind of results. Our next question will come from the line in the corner. A final one for your very good question, Brian. If you think our previous guidance was ten and a half, We have roughly 1.2 percentage point impact from the equity tax. We have a strong impact from the NIM and we're compensating up. So all in all, if you strip away the equity tax, we actually lowered our guidance in roughly 20 basis points or something of that order of magnitude.

Our next question will come from the line of Carlos Gomez with HSBC. Please go ahead.

Good morning, and thank you for taking my question. It was just a bit different. Can you tell us how the pension reform is going to affect your business and whether you think that porvenir should be part of your portfolio for the long run? And also, again, maybe this is not the right time, but what are the prospects of simplification of your structure and reducing the number of different units in the coming three, four years, in your opinion?

Let me take the easy ones, and I'm going to pass it on to Maria Lorena. Regarding the pension reform, as we've mentioned in the past, the pension reform actually balances out to, let's say, something similar from the value perspective. The pension reform reduces growth long-term, and I'm going to qualify what long-term means, but also increases returns in the short term. Long-term means when you take into consideration that an average affiliate to the pension system is around 38 years old and that the resources will be managed by pension funds for the remainder of their active life before they retire. The contraction of what we're going to see there with current affiliates it will start being relevant around after year 10. So during the first years, you're going to see volumes that are not strongly affected by the reform. However, it does change the expected sizes thereafter. Yes, Port Benir is actually a strong part of our business. It's both Port Benir and, as you see, the trust business are things we're working on. we are working not only on our intermediation business, but we're also considering as one of our pillars to work on the asset management and the fee generating businesses in addition to what we do in intermediations.

Okay.

Our next question will come from the line of Yuri Fernandez with JP Morgan. Please go ahead. Yuri, your line might be muted.

Hi guys, sorry I wasn't mute. My fault here. Hi Diego, Maria Lorena. I have a question regarding loan growth on the guidance and if I heard correctly, I think we're still guiding for 90.5. That is just a small adjustments from the previous around 10% that you had before and consumer loans are still growing. fast on your guidance rate, 14%. My question is more in line with what Brian was talking about the cycle. If there is a higher uncertainty in Colombia, inflation, higher rates, everything that we are seeing, do you think that keeping this growth of consumer loans is the best move? I'm just checking if maybe being a little bit more cautious and growing a little bit less would not be in this kind of framework. So just checking your comfort of accelerating the growth from consumer. I know Aval has been recovering market share, but again, just checking about the time and about the cycle. And then I have a second question regarding Avivigis. I was just checking the presentation and call a little bit my attention the core capital of that unit. I know it is overall small for the group, but if you can comment about the core capital of Avivigis why it moved down while the other subsidiaries, they moved up, and if you feel comfortable with that level of 9.3, correct your capital at Tier 1. Thank you.

And we'll start first with your last question. That's a very easy one. If you look at our sovereignty ratios, our banks use mainly Core Equity Tier 1 and are not strong users of AT1 or Tier 2 items. Then you also mentioned that VJAS is a small operation, so we can act very easily on VJAS regarding potential support, and it would likely come not from equity but from hybrid funds as we did in the past. VJAS is doing very well from the commercial side. So that's the reason why you see consumption of solvency and it is consumption due to a very healthy growth. Then to your question, I should have clarified that this guidance includes the TAU as part of the numbers. So just going back to some of the numbers, the TAU transaction, IT WILL ADD AROUND TWO PERCENTAGE POINTS IN THE SHARE OF CREDIT CARDS. IT WILL ALSO ADD TO OUR PERSONAL LOANS BUSINESS, AND IT'S BASICALLY THE MAIN DRIVER OF THAT KIND OF RULE. IN ABSENCE OF ITAÚ, YOU'RE RIGHT, WE WOULD HAVE BEEN GUIDING INTO much milder growth, more in line with nominal GDP growth or something in that order of magnitude.

No, that was clear. Thank you very much, Diego.

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 couple of questions. The first one is regarding OPEX on efficiency. Can you please review what will be the OPEX savings per year during the next phase of the strategy with and efficiency target that you expect to reach in this year, 2026, and in the medium term? That will be my first question. And the second one is regarding Corte Colombiana. Can you provide further color of the impact of inflation at Corte Colombiana? Especially in the infrastructure business, in the report you mentioned that it considers the inflation expectations, but I would like to understand if it is indeed the expectations or the actual inflation. I would like to understand if this is just a one of impact or considering the upward trend in inflation.

Well, yeah, regarding OPEX, we're working on multiple fronts. Those that Jorge mentioned will be running by the end of this year, a run rate of around $30 to $40 million per year. And that's an initial phase of what we're going to be doing. And then not included in what we discussed here, we're strongly working on the technology side. And in a later call, we can get back to that point where we see substantial opportunities to work on. Regarding CORFI, the way it works is these concessions, given that the rights received tied to inflation to adjust up with expected annual inflation. That compensates in part the very strong increase in cost of funds that they have. So there's some sort of an offset. But if you were to think only of Corte Colombiana, not the financial sector as aligned, but Corte Colombiana as a whole, they are being affected by higher interest rates and The income from inflation and the concessions is not enough to fully compensate what they're feeling from the funding side.

Again, if you'd like to ask a question, press star, then the number one on your telephone keypad. Our next question is a follow-up from the line of Carlos Gomez with HSBC. Please go ahead.

Hello, I came back to the line because I think there was a question that was not answered before. I just wanted to know if that's something you would like to address regarding the possible consolidation of the group in the next three or four years.

I'm sorry, I missed the question.

Yeah.

This is the question that we hear all the time. We just are working on having efficiencies and on having synergies between among bands. And we have a good integration with the few CIDs this year. So we are on the way to be more efficient, to have more impact, and to have risk aid. So we are working on that. No more to say.

Okay, I just wanted to make sure that you had the opportunity. And since we are at it, anything you can do to improve the liquidity of the stock?

Yeah, our liquidity has been increasing, not enough to our satisfaction part of what we are doing. The investors' relationship side is but there are further actions that we would need to do to increase liquidity. There's no plans for a secondary or a new issue at this point, so the actions would be more on stock management rather than from an additional stock issue.

Very clear. Thank you so much.

Our next question will come from the line of Santiago Villanueva with Davi Vienda. Please go ahead.

Yeah, good morning, and thank you for taking my question. I just have two questions. My first question is, I see that in 2025, the four banks gain nearly 60 basis points in retail funding market share, and by 2026, they have already gained 45 basis points. But most of that profit has come from Bogota and Popular. I'd like to know what your market share expectations are for this segment in 2026, and what you have planned to help Occident and Villas to contribute a little bit more. And my second question is could you provide us a little more detail on the performance of the infrastructure segment in Corte Colombiana for this quarter?

Thank you. Yeah, and I don't have a figure. I'm happy to give it out to you later on. That's public information. I just don't have a number here. You're right, we've been more successful on Popular and Banco Gota bringing in retail deposits, but you can be sure that we're working with all of the banks to ensure that all contribute to these very relevant strategic objectives. Regarding infrastructure, I think that was covered in the previous question. You have the one-time effects of changes in inflation expectations. that improve the performance of the infrastructure business. However, as I mentioned, over the year, we're going to have a higher interest rate environment that will partially offset what we received during the first quarter. So it's very much related to what I discussed before.

Are we guarding businesses in Corti Colombiana, as you know? So Colombia... Colombia doesn't have new projects in infrastructure. Again, the government is not just open one project in these last four years. So given that we are finishing our concessions, the construction of the concession, so we are looking for projects outside Colombia. So this is part of our strategy. And we hope that the new government, whatever we will have new projects in infrastructure. But given that right now we don't have one, we are looking at a growth.

And this will conclude our question and answer session. Ms. Maria Lorena Gutierrez-Butero, I turn the call back over to you.

So thank you to you for being with us today and see you in the next call. Have a good day.

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