{"product_id":"aval-vrio-analysis","title":"Grupo Aval Acciones y Valores S.A. (AVAL): VRIO Analysis [Mar-2026 Updated]","description":"\u003cbr\u003e\u003cp\u003eIs Grupo Aval Acciones y Valores S.A. (AVAL) truly built to last, or is its current success fleeting? This VRIO analysis cuts straight to the core, scrutinizing the Value, Rarity, Inimitability, and Organization of its key assets to reveal the true source of its competitive edge - or lack thereof. Discover the definitive verdict on whether Grupo Aval Acciones y Valores S.A. (AVAL)'s foundation is a sustainable advantage or merely a temporary lead, and what that means for its future strategy, by diving into the detailed findings below.\u003c\/p\u003e\n\n\u003cbr\u003e\u003ch2\u003eGrupo Aval Acciones y Valores S.A. (AVAL) - VRIO Analysis: 1. Dominant Colombian Market Scale and Reach\n\u003c\/h2\u003e\n\n\u003cp\u003eYou’re looking at Grupo Aval Acciones y Valores S.A. (AVAL) and its sheer size in Colombia is the first thing that jumps out - it’s a massive footprint that translates directly into financial muscle. This scale is your primary source of competitive insulation in the local market, something that simply cannot be bought overnight. It’s the foundation of their operating efficiency and market power.\u003c\/p\u003e\n\n\u003cp\u003e\u003cstrong\u003eValue: Economies of Scale in Action\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003eThe value here is straightforward: size lets AVAL spread fixed costs over a huge asset base, which is key for profitability in banking. As of May 2025, AVAL held a commanding total market share of \u003cstrong\u003e25.0%\u003c\/strong\u003e in loans across Colombia. This scale helped keep their Cost to Assets efficiency competitive, clocking in at \u003cstrong\u003e2.8%\u003c\/strong\u003e for the second quarter of 2025, only slightly up from 2.7% the year prior. To put that into perspective, their gross loans hit \u003cstrong\u003e199.4 trillion pesos\u003c\/strong\u003e and deposits reached \u003cstrong\u003e211.8 trillion pesos\u003c\/strong\u003e by the end of 2Q2025. That’s a lot of money moving through their system.\u003c\/p\u003e\n\n\u003cp\u003e\u003cstrong\u003eRarity, Imitability, and Organization\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003eHonestly, finding a competitor with this exact breadth across all major financial segments - from retail banking to pension management - is tough in Colombia. The \u003cstrong\u003eRarity\u003c\/strong\u003e is high because it represents decades of consolidation and regulatory navigation. \u003cstrong\u003eImitability\u003c\/strong\u003e is very high; replicating this network of branches, regulatory licenses, and established customer trust would take a new entrant many years and billions in capital deployment. The \u003cstrong\u003eOrganization\u003c\/strong\u003e is set up to manage this complexity, using structures like Aval Valor Compartido to centralize administrative functions and capture synergies.\u003c\/p\u003e\n\n\u003cp\u003eHere’s a quick breakdown of the VRIO assessment for this scale:\u003c\/p\u003e\n\u003ctable border=\"1\"\u003e\n  \u003ctr\u003e\n    \u003ctd\u003e\u003cstrong\u003eVRIO Dimension\u003c\/strong\u003e\u003c\/td\u003e\n    \u003ctd\u003e\u003cstrong\u003eAssessment\u003c\/strong\u003e\u003c\/td\u003e\n    \u003ctd\u003e\u003cstrong\u003eScore (1-4)\u003c\/strong\u003e\u003c\/td\u003e\n  \u003c\/tr\u003e\n  \u003ctr\u003e\n    \u003ctd\u003eValue (V)\u003c\/td\u003e\n    \u003ctd\u003eYes, drives cost efficiency and market power\u003c\/td\u003e\n    \u003ctd\u003e4\u003c\/td\u003e\n  \u003c\/tr\u003e\n  \u003ctr\u003e\n    \u003ctd\u003eRarity (R)\u003c\/td\u003e\n    \u003ctd\u003eYes, unmatched breadth across Colombian financial segments\u003c\/td\u003e\n    \u003ctd\u003e3\u003c\/td\u003e\n  \u003c\/tr\u003e\n  \u003ctr\u003e\n    \u003ctd\u003eImitability (I)\u003c\/td\u003e\n    \u003ctd\u003eDifficult\/Costly to Imitate (Historical\/Path Dependent)\u003c\/td\u003e\n    \u003ctd\u003e3\u003c\/td\u003e\n  \u003c\/tr\u003e\n  \u003ctr\u003e\n    \u003ctd\u003eOrganization (O)\u003c\/td\u003e\n    \u003ctd\u003eOrganized to Exploit (Conglomerate structure)\u003c\/td\u003e\n    \u003ctd\u003e4\u003c\/td\u003e\n  \u003c\/tr\u003e\n\u003c\/table\u003e\n\n\u003cp\u003eThe resulting \u003cstrong\u003eCompetitive Advantage\u003c\/strong\u003e is clearly \u003cstrong\u003eSustained\u003c\/strong\u003e. It’s not just about having the biggest loan book; it’s about the embedded, hard-to-dislodge position within the Colombian financial ecosystem. This scale acts as a significant barrier to entry for any challenger.\u003c\/p\u003e\n\n\u003cp\u003eWhat this estimate hides is the performance variance across the four main commercial banks within the group, like Banco de Bogotá versus Banco AV Villas, which target different risk profiles. Still, the aggregate scale is what matters for this VRIO pillar.\u003c\/p\u003e\n\u003cul\u003e\n  \u003cli\u003eLoan Market Share (May 2025): \u003cstrong\u003e25.0%\u003c\/strong\u003e\n\u003c\/li\u003e\n  \u003cli\u003eGross Loans (2Q2025): \u003cstrong\u003e199.4 trillion pesos\u003c\/strong\u003e\n\u003c\/li\u003e\n  \u003cli\u003eCost to Assets (2Q2025): \u003cstrong\u003e2.8%\u003c\/strong\u003e\n\u003c\/li\u003e\n  \u003cli\u003eKey Subsidiaries: Banco de Bogotá, Banco de Occidente, Banco Popular, Banco AV Villas\u003c\/li\u003e\n\u003c\/ul\u003e\n\n\u003cp\u003eFinance: draft the 13-week cash flow view incorporating the latest deposit growth figures by Friday.\u003c\/p\u003e\n\n\u003cbr\u003e\u003ch2\u003eGrupo Aval Acciones y Valores S.A. (AVAL) - VRIO Analysis: 2. Diversified Financial Conglomerate Structure\n\u003c\/h2\u003e\n\u003cp\u003e\u003cstrong\u003eValue:\u003c\/strong\u003e Provides resilience; weakness in one area (like commercial loans losing share) is offset by strength in others (like consumer loans gaining share, up \u003cstrong\u003e112 bps\u003c\/strong\u003e YoY in consumer loans as of May 2025). As of May 2025, AVAL banks gained market share in consumer loans by \u003cstrong\u003e112 basis points\u003c\/strong\u003e and in mortgages by \u003cstrong\u003e206 basis points\u003c\/strong\u003e, while losing \u003cstrong\u003e109 basis points\u003c\/strong\u003e in commercial loans, resulting in a total market share of \u003cstrong\u003e25.0%\u003c\/strong\u003e (- 10 bps LTM).\u003c\/p\u003e\n\u003cp\u003eThe diversification is evident in the loan portfolio composition as of June 30, 2025 (2Q2025):\u003c\/p\u003e\n\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003ctd\u003eLoan Category\u003c\/td\u003e\n\u003ctd\u003eGross Loans (Ps billions)\u003c\/td\u003e\n\u003ctd\u003eYear-over-Year Growth (2Q2025 vs 2Q2024)\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd\u003eCommercial loans\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003ePs 113,011.8\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e0.3%\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eConsumer loans\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003ePs 62,725.1\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e3.6%\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eMortgages loans\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003ePs 23,618.6\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e20.1%\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eTotal Gross Loans (excl. interbank)\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003ePs 199,357.1\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e3.2%\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\n\u003cp\u003e\u003cstrong\u003eRarity:\u003c\/strong\u003e Moderate. While other large groups exist, AVAL's specific mix of commercial banking, retail banking, merchant banking, and pensions is unique, evidenced by its ownership structure across key regulated entities:\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003eBanco de Bogotá ownership: \u003cstrong\u003e68.9%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eBanco de Occidente ownership: \u003cstrong\u003e72.3%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eBanco Popular ownership: \u003cstrong\u003e93.7%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eAFP Porvenir ownership: \u003cstrong\u003e79.9%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eAval Fiduciaria ownership: \u003cstrong\u003e95.4%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eAval Casa de Bolsa ownership: \u003cstrong\u003e40.8%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003e\u003cstrong\u003eImitability:\u003c\/strong\u003e Moderate. Competitors could acquire similar assets, but integrating them effectively is difficult. The holding company structure manages these diverse entities.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eOrganization:\u003c\/strong\u003e High. The holding company structure is explicitly set up to manage and cross-sell across these diverse entities. The separate financial statements as of December 31, 2024, show Total Assets of \u003cstrong\u003ePs 20,940,244 million\u003c\/strong\u003e and Total Liabilities of \u003cstrong\u003ePs 2,971,539 million\u003c\/strong\u003e.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCompetitive Advantage:\u003c\/strong\u003e Temporary. Diversification is good, but the specific structure's synergy benefits can be copied over time.\u003c\/p\u003e\n\n\u003cbr\u003e\u003ch2\u003eGrupo Aval Acciones y Valores S.A. (AVAL) - VRIO Analysis: 3. Leading Private Pension Fund Management (Porvenir)\n\u003c\/h2\u003e\n\u003cp\u003e\u003cstrong\u003eValue:\u003c\/strong\u003e Generates stable, long-term fee income and provides a massive, sticky customer base for cross-selling banking products; Porvenir is the largest private manager.\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003e\n\u003cstrong\u003eCross-selling Base:\u003c\/strong\u003e Grupo Aval reported +17 MM Pension fund clients as of December 2024.\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eScale:\u003c\/strong\u003e Porvenir is the leading private administrator of Pension and Severance Funds in Colombia.\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eAffiliate Base:\u003c\/strong\u003e Porvenir has over 12 million affiliates.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003e\u003cstrong\u003eRarity:\u003c\/strong\u003e High. Controlling the largest private pension fund manager in the country is a unique, regulated asset.\u003c\/p\u003e\n\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003ctd\u003eMetric\u003c\/td\u003e\n\u003ctd\u003eMarket Share (as of Dec 31, 2024)\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd\u003eMandatory Pension Funds\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e46.9%\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eSeverance Funds\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e48.3%\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eVoluntary Pensions\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e21.1%\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\n\u003cp\u003e\u003cstrong\u003eImitability:\u003c\/strong\u003e High. Entry barriers are extremely high due to regulatory requirements and the need for massive initial scale.\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003eThe business operates under specific government-established limitations for investment of fund resources, emphasizing regulatory control.\u003c\/li\u003e\n\u003cli\u003eThe scale achieved is evidenced by the market share figures, which represent a significant barrier to entry for new competitors.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003e\u003cstrong\u003eOrganization:\u003c\/strong\u003e High. The group actively manages and integrates Porvenir's results, as seen in the equity method income boost.\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003eNet income in Grupo Aval's separate financial statements is derived primarily from equity method income.\u003c\/li\u003e\n\u003cli\u003eIn 2023, Porvenir delivered over $1.5 billion COP in mesadas pensionales (pension payments).\u003c\/li\u003e\n\u003cli\u003eIn 2023, Porvenir achieved a 15.7% profitability, resulting in returns exceeding $25 billion COP for affiliates.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003e\u003cstrong\u003eCompetitive Advantage:\u003c\/strong\u003e Sustained. This regulated, market-leading position is a core, defensible asset.\u003c\/p\u003e\n\u003cp\u003eGrupo Aval's consolidated attributable net income for 2024 was Ps 1,015.1 billion, compared to Ps 739.0 billion in 2023, demonstrating the overall group's financial performance, supported in part by the equity method income from the leading pension manager.\u003c\/p\u003e\n\n\u003cbr\u003e\u003ch2\u003eGrupo Aval Acciones y Valores S.A. (AVAL) - VRIO Analysis: 4. Extensive Physical and Digital Distribution Network\n\u003c\/h2\u003e\n\u003cp\u003e\u003cstrong\u003eValue\u003c\/strong\u003e: Ensures high customer reach for deposits and loan origination, crucial for capturing market share gains in retail lending. As of November 2024, the Aval banks had gained \u003cstrong\u003e152 bps\u003c\/strong\u003e in mortgage market share over 12 months. The consolidated network supports approximately \u003cstrong\u003e15.8 million\u003c\/strong\u003e banking customers as of December 2024.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eRarity\u003c\/strong\u003e: Low to Moderate. The physical footprint is substantial, comprising \u003cstrong\u003e996 Branches\u003c\/strong\u003e and \u003cstrong\u003e2,833 ATMs\u003c\/strong\u003e as of December 2024. This is complemented by a network of approximately \u003cstrong\u003e120,000\u003c\/strong\u003e service points, including banking correspondents.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eImitability\u003c\/strong\u003e: Moderate. Replicating the physical network is costly; building a comparable digital presence is faster but still requires significant investment.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eOrganization\u003c\/strong\u003e: High. The group is focused on leveraging this network, evidenced by strategic growth metrics.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCompetitive Advantage\u003c\/strong\u003e: Temporary. The physical scale is valuable, but digital parity is achievable by well-capitalized rivals.\u003c\/p\u003e\n\u003cp\u003eThe scale and reach of the distribution network as of December 31, 2024, are detailed below:\u003c\/p\u003e\n\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eDistribution Component\u003c\/th\u003e\n\u003cth\u003eQuantity (As of Dec 2024)\u003c\/th\u003e\n\u003c\/tr\u003e\n\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd\u003eBranches\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e996\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eATMs\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e2,833\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eBanking Correspondents\u003c\/td\u003e\n\u003ctd\u003e\n\u003cstrong\u003e120,085\u003c\/strong\u003e (Total Service Points)\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\n\u003cp\u003eThe group's performance in expanding its loan portfolio, supported by this network, includes market share gains as of November 2024:\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003eTotal Gross Loans Market Share Gain (12-months): \u003cstrong\u003e75 bps\u003c\/strong\u003e\n\u003c\/li\u003e\n\u003cli\u003eConsumer Loans Market Share Gain (12-months): \u003cstrong\u003e150 bps\u003c\/strong\u003e\n\u003c\/li\u003e\n\u003cli\u003eMortgages Market Share Gain (12-months): \u003cstrong\u003e152 bps\u003c\/strong\u003e\n\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003eDigital transaction volume growth from 2022 to 2023 demonstrates ongoing digital channel utilization:\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003eSuccessful monetary and non-monetary transactions (2023): \u003cstrong\u003e2,313 million\u003c\/strong\u003e\n\u003c\/li\u003e\n\u003cli\u003eAnnual growth in transactions (2022 to 2023): \u003cstrong\u003e15.9%\u003c\/strong\u003e\n\u003c\/li\u003e\n\u003c\/ul\u003e\n\n\u003cbr\u003e\u003ch2\u003eGrupo Aval Acciones y Valores S.A. (AVAL) - VRIO Analysis: 5. Superior Loan Portfolio Quality Control\n\u003c\/h2\u003e\n\n\u003cp\u003e\u003cstrong\u003eValue:\u003c\/strong\u003e Lowers the cost of risk, directly boosting profitability; the cost of risk was \u003cstrong\u003e1.7%\u003c\/strong\u003e in 2Q2025, better than the system average. The improvement in cost of risk for the quarter was 35 basis points lower than the same quarter last year, driven by a 27 basis points improvement in consumer loans to \u003cstrong\u003e4.2%\u003c\/strong\u003e and a 46 basis points improvement in commercial loans to \u003cstrong\u003e0.4%\u003c\/strong\u003e.\u003c\/p\u003e\n\n\u003cp\u003e\u003cstrong\u003eRarity:\u003c\/strong\u003e Moderate. Being better than the system is good, but not unique; however, AVAL's consistent outperformance is notable. For instance, AVAL's consolidated 30-day Past Due Loans (PDLs) stood at \u003cstrong\u003e4.81%\u003c\/strong\u003e in 2Q2025, while the Colombian banking system's 30-day PDLs were reported at \u003cstrong\u003e5.2%\u003c\/strong\u003e in May 2025.\u003c\/p\u003e\n\n\u003cp\u003e\u003cstrong\u003eImitability:\u003c\/strong\u003e Moderate. Competitors can adopt better underwriting models, but AVAL's experience is embedded in its processes. AVAL's banks have shown better quality than the system across loan categories.\u003c\/p\u003e\n\n\u003cp\u003e\u003cstrong\u003eOrganization:\u003c\/strong\u003e High. The banks consistently exhibit better quality than the system across loan categories. The organization has demonstrated a sustained focus on quality improvement, with 30-day PDL formation for 2Q2025 being the lowest since 2Q22.\u003c\/p\u003e\n\n\u003cp\u003e\u003cstrong\u003eCompetitive Advantage:\u003c\/strong\u003e Temporary. Quality is a function of process and economic cycle; sustained outperformance is hard to guarantee.\u003c\/p\u003e\n\n\u003cp\u003eThe superior loan portfolio quality control is evidenced by the following comparative metrics:\u003c\/p\u003e\n\n\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eMetric (30-day PDLs \/ Gross Loans)\u003c\/th\u003e\n\u003cth\u003eAVAL Banks (2Q2025)\u003c\/th\u003e\n\u003cth\u003eSystem Excluding Aval (May-25 Proxy)\u003c\/th\u003e\n\u003cth\u003eAVAL Commercial Loans (2Q2025)\u003c\/th\u003e\n\u003cth\u003eAVAL Consumer Loans (2Q2025)\u003c\/th\u003e\n\u003c\/tr\u003e\n\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd\u003eOverall \/ Total\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e4.81%\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e5.2%\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e4.37%\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e5.07%\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e90-day PDLs\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e3.51%\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003eN\/A\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e3.87%\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e2.84%\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\n\u003cp\u003e\u003c\/p\u003e\n\n\u003cp\u003eFurther details on AVAL's loan quality performance in 2Q2025 include:\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003e30-day PDLs improved by \u003cstrong\u003e37 basis points\u003c\/strong\u003e over the quarter to \u003cstrong\u003e4.81%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003e90-day PDLs improved by \u003cstrong\u003e23 basis points\u003c\/strong\u003e over the quarter to \u003cstrong\u003e3.51%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eCommercial 30-day PDLs improved by \u003cstrong\u003e41 basis points\u003c\/strong\u003e quarter-on-quarter to \u003cstrong\u003e4.37%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eConsumer 30-day PDLs improved by \u003cstrong\u003e39 basis points\u003c\/strong\u003e over the quarter to \u003cstrong\u003e5.07%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eMortgages 30-day PDLs improved by \u003cstrong\u003e13 basis points\u003c\/strong\u003e over the quarter.\u003c\/li\u003e\n\u003c\/ul\u003e\n\n\u003cbr\u003e\u003ch2\u003eGrupo Aval Acciones y Valores S.A. (AVAL) - VRIO Analysis: 6. Integrated Commercial Model Synergies\u003c\/h2\u003e\n\u003cp\u003e\u003cstrong\u003eValue:\u003c\/strong\u003e Drives revenue growth by coordinating efforts between the banks and Aval Banca de Inversión, leading to faster commercial loan growth in certain segments.\u003c\/p\u003e\n\u003cp\u003eThe coordination efforts are evidenced by market share gains across key lending segments as of November 2024:\u003c\/p\u003e\n\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003ctd\u003eSegment\u003c\/td\u003e\n\u003ctd\u003eMarket Share Gain (bps over 12-months)\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd\u003eTotal Gross Loans\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e75\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eCommercial Loans\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e52\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eConsumer Loans\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e150\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eMortgages\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e152\u003c\/strong\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\n\u003cp\u003eConsolidated Gross Loans reached \u003cstrong\u003e199.4 trillion pesos\u003c\/strong\u003e as of 4Q24, reflecting a \u003cstrong\u003e7.3%\u003c\/strong\u003e growth versus 4Q23. Net income from commissions and fees for 2024 totaled \u003cstrong\u003ePs 3,584 billion\u003c\/strong\u003e, a \u003cstrong\u003e6.9%\u003c\/strong\u003e increase compared to 2023.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eRarity:\u003c\/strong\u003e Low. Most large financial groups aim for this integration, but AVAL is actively implementing a new integrated model.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eImitability:\u003c\/strong\u003e Low. The specific execution of the new integrated commercial model is proprietary to AVAL's management structure.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eOrganization:\u003c\/strong\u003e High. The focus on deepening this model suggests management is organized to exploit it now.\u003c\/p\u003e\n\u003cp\u003eManagement organization supporting the integrated model includes structural changes:\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003eAcquisition of \u003cstrong\u003e40.77%\u003c\/strong\u003e of the outstanding shares of Casa de Bolsa.\u003c\/li\u003e\n\u003cli\u003eAcquisition of \u003cstrong\u003e95.4%\u003c\/strong\u003e of Fiduciaria Corficolombiana.\u003c\/li\u003e\n\u003cli\u003eRenaming the acquired entities to Aval Casa de Bolsa and Aval Fiduciaria.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003eThe holding company's assets include a \u003cstrong\u003e70.0%\u003c\/strong\u003e interest in Aval Banca de Inversión as of 3Q2025.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCompetitive Advantage:\u003c\/strong\u003e Temporary. Successful integration can be copied once the blueprint is proven effective.\u003c\/p\u003e\n\n\u003cbr\u003e\u003ch2\u003eGrupo Aval Acciones y Valores S.A. (AVAL) - VRIO Analysis: 7. Fiduciary Market Leadership (Aval Fiduciaria)\n\u003c\/h2\u003e\n\n\u003cp\u003e\u003cstrong\u003eValue\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003eThe fiduciary segment, consolidated under Aval Fiduciaria, is projected to be the largest in Colombia by assets under administration, estimated at \u003cstrong\u003eCOP $201 billion\u003c\/strong\u003e upon full operation in 2026. This consolidation aims for Aval Fiduciaria to become the institution leading in fee income, targeting a \u003cstrong\u003e21% market share\u003c\/strong\u003e in that metric. The company is expected to manage over \u003cstrong\u003e5,500\u003c\/strong\u003e trusts.\u003c\/p\u003e\n\n\u003cp\u003e\u003cstrong\u003eRarity\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003eAchieving the number one position in Colombia by Assets Under Administration (AUA) and securing a \u003cstrong\u003e21%\u003c\/strong\u003e market share in fee income demonstrates a rare concentration of market power within the specialized fiduciary service sector.\u003c\/p\u003e\n\n\u003cp\u003e\u003cstrong\u003eImitability\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003eThe current market leadership position is being solidified through a complex corporate reorganization, which presents a barrier to immediate imitation by competitors. The transaction involves the spin-off and transfer of fiduciary business units from three subsidiaries into Aval Fiduciaria.\u003c\/p\u003e\n\n\u003cp\u003e\u003cstrong\u003eOrganization\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003eThe organization is highly focused on strengthening this position, evidenced by the corporate reorganization that received regulatory approval from the Superintendencia Financiera. The transaction involved an approximate total asset transfer value from the spun-off subsidiaries of \u003cstrong\u003eCOP $148 billion\u003c\/strong\u003e.\u003c\/p\u003e\n\n\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eMetric\u003c\/th\u003e\n\u003cth\u003eData Point\u003c\/th\u003e\n\u003cth\u003eUnit\/Context\u003c\/th\u003e\n\u003c\/tr\u003e\n\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd\u003eProjected AUA (2026)\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e201\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003eBillones de COP\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eProjected Fee Income Market Share (2026)\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e21%\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003eMarket Share\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eNumber of Trusts to be Managed\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e5,500+\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003eCount\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eTotal Asset Transfer Value (Pre-tax)\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e148,000,000,000\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003eCOP\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eTarget Operational Start Date\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003eJanuary 2, 2026\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003eDate\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\n\n\u003cp\u003eThe share exchange ratios established for the reorganization highlight the structural complexity of the integration:\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003eFor each share of Fiduciaria Bogotá S.A.: \u003cstrong\u003e1.9664\u003c\/strong\u003e shares of Aval Fiduciaria S.A.\u003c\/li\u003e\n\u003cli\u003eFor each share of Fiduciaria de Occidente S.A.: \u003cstrong\u003e1.6213\u003c\/strong\u003e shares of Aval Fiduciaria S.A.\u003c\/li\u003e\n\u003cli\u003eFor each share of Fiduciaria Popular S.A.: \u003cstrong\u003e0.0973\u003c\/strong\u003e shares of Aval Fiduciaria S.A.\u003c\/li\u003e\n\u003c\/ul\u003e\n\n\u003cp\u003e\u003cstrong\u003eCompetitive Advantage\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003eThe established client relationships and regulatory trust inherent in the pre-existing entities, now unified, create high switching costs for clients, supporting a sustained competitive advantage in the fiduciary services sector.\u003c\/p\u003e\n\n\u003cbr\u003e\u003ch2\u003eGrupo Aval Acciones y Valores S.A. (AVAL) - VRIO Analysis: 8. Bilateral Regulatory Expertise (Colombia \u0026amp; US)\n\u003c\/h2\u003e\n\u003cp\u003e\u003cstrong\u003eValue:\u003c\/strong\u003e Allows access to deep, liquid US capital markets for funding and listing (ADR program), while navigating complex local Colombian supervision by the Superintendency of Finance.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eRarity:\u003c\/strong\u003e High. Navigating two distinct, complex regulatory regimes simultaneously is a specialized, non-replicable skill set.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eImitability:\u003c\/strong\u003e High. The institutional knowledge and compliance infrastructure required are very difficult and expensive to build from scratch.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eOrganization:\u003c\/strong\u003e High. The company is structured to meet both SEC and local reporting requirements, as seen in its dual filings.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCompetitive Advantage:\u003c\/strong\u003e Sustained. This dual compliance capability is a necessary, high-barrier-to-entry function for international finance.\u003c\/p\u003e\n\u003cp\u003eThe scale of operations necessitating this dual expertise is reflected in the consolidated financial figures:\u003c\/p\u003e\n\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eMetric\u003c\/th\u003e\n\u003cth\u003eValue\u003c\/th\u003e\n\u003cth\u003eDate\/Period\u003c\/th\u003e\n\u003cth\u003eSource Standard\u003c\/th\u003e\n\u003c\/tr\u003e\n\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd\u003eConsolidated Total Assets\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003eC$106.84 Billion\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003eAs of December 31, 2024\u003c\/td\u003e\n\u003ctd\u003eReported (Implied USD\/Local Currency Conversion)\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eConsolidated Attributable Net Income\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003ePs 1,015.1 billion\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003eFull Year 2024\u003c\/td\u003e\n\u003ctd\u003eIFRS\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eLoan Portfolio (Gross)\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003eCOP$10,006,639 million\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003eAs of December 31, 2024\u003c\/td\u003e\n\u003ctd\u003eIFRS\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003ePreferred Shares Outstanding\u003c\/td\u003e\n\u003ctd\u003e\u003cstrong\u003e7,542,263,255\u003c\/strong\u003e\u003c\/td\u003e\n\u003ctd\u003eAs of close of business in Annual Report\u003c\/td\u003e\n\u003ctd\u003eSEC Filing Data\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\n\u003cp\u003eThe requirement for dual compliance mandates adherence to multiple reporting frameworks and regulatory bodies:\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003eThe company is an issuer of securities in Colombia and the United States, filing Form \u003cstrong\u003e20-F\u003c\/strong\u003e with the \u003cstrong\u003eSEC\u003c\/strong\u003e annually.\u003c\/li\u003e\n\u003cli\u003eThe holding company is under the inspection and supervision of the \u003cstrong\u003eSuperintendency of Finance\u003c\/strong\u003e in Colombia.\u003c\/li\u003e\n\u003cli\u003eOperational risk policies are aligned to comply with guidelines from the Superintendence of Finance and the U.S. \u003cstrong\u003eSarbanes-Oxley Act of 2002\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eConsolidated financial statements are prepared under \u003cstrong\u003eIFRS as issued by the IASB\u003c\/strong\u003e, while local financial statements adhere to \u003cstrong\u003eColombian IFRS\u003c\/strong\u003e, which differs materially in certain aspects (e.g., wealth tax treatment).\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003eThe organizational structure must support the concurrent preparation and filing of reports under these distinct requirements:\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003eFiling of the Form 20-F with the SEC for the year ended December 31, \u003cstrong\u003e2024\u003c\/strong\u003e, was announced.\u003c\/li\u003e\n\u003cli\u003eColombian financial statements must be filed with the market and the Superintendency of Finance in accordance with Colombian regulations.\u003c\/li\u003e\n\u003cli\u003eThe company must comply with corporate governance and periodic reporting requirements for all financial holdings and issuers subject to the Superintendency of Finance.\u003c\/li\u003e\n\u003c\/ul\u003e\n\n\u003cbr\u003e\u003ch2\u003eGrupo Aval Acciones y Valores S.A. (AVAL) - VRIO Analysis: 9. Strong and Growing Deposit Franchise\n\u003c\/h2\u003e\n\u003cp\u003e\u003cstrong\u003eValue:\u003c\/strong\u003e Provides a low-cost, stable funding base, evidenced by deposits growing \u003cstrong\u003e8.5%\u003c\/strong\u003e year-over-year in 3Q2025 and a healthy deposit-to-net loan ratio of \u003cstrong\u003e109%\u003c\/strong\u003e in 3Q2025.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eRarity:\u003c\/strong\u003e Moderate. A large deposit base is common for big banks, but AVAL's growth outpaced loan growth, indicating strong customer trust.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eImitability:\u003c\/strong\u003e Moderate. Competitors can raise rates to attract deposits, but building organic, low-cost trust takes time.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eOrganization:\u003c\/strong\u003e High. Management is focused on improving retail deposits, with peso-denominated deposits from individuals growing \u003cstrong\u003e22%\u003c\/strong\u003e YoY.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCompetitive Advantage:\u003c\/strong\u003e Temporary. While strong, funding costs are sensitive to interest rate environments and competitor pricing actions.\u003c\/p\u003e\n\u003cp\u003eThe VRIO assessment for this specific franchise strength is summarized below:\u003c\/p\u003e\n\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003ctd\u003eComponent\u003c\/td\u003e\n\u003ctd\u003eAssessment\u003c\/td\u003e\n\u003ctd\u003eData\/Justification\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd\u003eValue\u003c\/td\u003e\n\u003ctd\u003eYes\u003c\/td\u003e\n\u003ctd\u003eDeposits grew \u003cstrong\u003e8.5%\u003c\/strong\u003e YoY in 3Q2025; Deposit-to-net loan ratio at \u003cstrong\u003e109%\u003c\/strong\u003e in 3Q2025.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eRarity\u003c\/td\u003e\n\u003ctd\u003eNo\u003c\/td\u003e\n\u003ctd\u003eLarge deposit base common; growth outpaced loan growth.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eImitability\u003c\/td\u003e\n\u003ctd\u003eNo\u003c\/td\u003e\n\u003ctd\u003eCompetitors can raise rates, but organic trust takes time.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eOrganization\u003c\/td\u003e\n\u003ctd\u003eYes\u003c\/td\u003e\n\u003ctd\u003eFocus on retail deposits; peso-denominated deposits from individuals grew \u003cstrong\u003e22%\u003c\/strong\u003e YoY.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003eCompetitive Advantage\u003c\/td\u003e\n\u003ctd\u003eTemporary\u003c\/td\u003e\n\u003ctd\u003eFunding costs sensitive to rate environments and competitor pricing actions.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\n\u003cp\u003eFurther detail on the deposit growth components includes:\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003ePeso-denominated deposits from individuals grew \u003cstrong\u003e22%\u003c\/strong\u003e over the year.\u003c\/li\u003e\n\u003cli\u003eWithin this, saving and checking accounts grew \u003cstrong\u003e11%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eTerm deposits grew \u003cstrong\u003e31%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003eThe consolidated results for 3Q2025 showed total deposits increasing by \u003cstrong\u003e8.5%\u003c\/strong\u003e versus 3Q24.\u003c\/p\u003e","brand":"dcf.fm","offers":[{"title":"Default Title","offer_id":45516118491285,"sku":"aval-vrio-analysis","price":7.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0630\/5189\/0837\/files\/aval-vrio-analysis.png?v=1740179708","url":"https:\/\/dcf-model.com\/fr\/products\/aval-vrio-analysis","provider":"AI-Powered Discounted Cash Flow Model Templates","version":"1.0","type":"link"}