Juan Recalde

Juan Recalde from Scotiabank inquired about the sustainability of the strong income from the non-financial sector, particularly from energy, gas, and infrastructure, given its robust performance in the quarter.

Answer

CFO Diego Fernando Solano Saravia responded that while the first quarter was particularly strong for the non-financial sector, the company is maintaining its full-year guidance, which projects this segment's income to be around 70% of what was achieved in the previous year.

Juan Recalde of Scotiabank asked for clarification on the effective tax rate incorporated into the 2023 guidance and inquired about Grupo Aval's expectation for its sustainable, long-term Return on Equity (ROE).

Answer

CFO Diego Fernando Solano Saravia responded that the 2023 guidance assumes an effective tax rate of approximately 36%, which is expected to remain stable barring any new tax reforms. He stated that while the short-term ROE is guided to be 11-12%, the company's long-term sustainable ROE target is to return to 15% once net interest margins normalize.