Grupo Aval Acciones y Valores S.A. (NYSE:AVAL) Q4 2022 Earnings Conference Call March 6, 2023 9:00 AM ET
Company Participants
Luis Carlos Sarmiento Gutierrez - CEO
Diego Fernando Solano Saravia - CFO
Conference Call Participants
Yuri Fernandes - JPMorgan
Juan Recalde - Scotiabank
Operator
Welcome to Grupo Aval's Fourth Quarter 2022 Consolidated Results Conference Call. My name is Brent and I will be your operator for today's call. Grupo Aval Acciones y Valores S.A., Grupo Aval is an issuer of securities in Colombia and in the United States SEC. As such, it is subject to compliance with securities regulations in Colombia and applicable U.S. Securities Regulation.
Grupo Aval is also subject to the inspection and supervision of the superintendency of finance as a holding company of the Aval Financial conglomerate. The Consolidated Financial information included in this document is presented in accordance with IFRS as currently issued by the IASB. Details of the calculations of non-IFRS measures, such as ROAA and ROAE among others are explained when required in this report.
Banco de Bogotá executed a spin-off over 75% equity stake in BAC Holding International Corp. BHI. to its shareholders, and Grupo Aval subsequently spun-off its equity interest to its shareholders on March 29, 2022. Prior to the spin-off, Banco de Bogotá was the direct and only parent of BHI. Furthermore, on December 19, 2022 Banco de Bogotá sold 20.89% of the outstanding investment of BHI through a tender offer. As of December 31, 2022, Banco de Bogotá held a 4.11% of BHI. This investment is reflected as an investment at fair value through other comprehensive income.
As a result, for comparability purposes, we have prepared and presented a supplemental unaudited pro forma financial information for the 12 months ended December 31, 2021. That assumes the spin-off was completed on January 1, 2021. As a result of the sale of 20.89% of BHI, in this presentation, we have reclassified the BHI's equity method to discontinued operation for the second and third quarter of 2022.
The supplemental unaudited pro forma financial information does not purport to be indicative of our results of operations or financial position at the relevant transactions occurred on the dates assumed and does not 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, 2022 may result in adjustments to the unaudited pro forma financial information presented herein, any such adjustments may be material. For further information, please see the supplemental unaudited pro forma financial information in our fourth quarter of 2022 earnings release.