RISK MANAGEMENT

12 Months Ended

Dec. 31, 2025

Disclosure of risk management [abstract]

Disclosure of risk management [text block]

NOTE 4 – RISK MANAGEMENT

Grupo Aval and its subsidiaries in the financial sector, Banco de Bogotá, Banco de Occidente, Banco AV Villas, Banco Popular, Corficolombiana, Porvenir, Aval Fiduciaria and Aval Casa de Bolsa manage risk pursuant to the applicable regulations in each country where they operate and according to Grupo Aval’s policies.

The risk framework requires that strong risk management practices are integrated in the key processes across Grupo Aval with a goal of ensuring risks are appropriately considered, evaluated and responded to in a timely manner. Grupo Aval employs a risk management process that aims to identify, measure, monitor and control, as part of the daily activities, all the risks that Grupo Aval is exposed to.

Three lines model: in addition to the roles of Executive Officers in managing risk, management has ownership and accountability across the three lines of defense: (1) First Line: Business Units, (2) Second Line: mainly concentrated in the Independent Risk Management units and (3) Third line: Corporate Audit.

●

Business Units: Include the business lines as well as the Technology and Operations areas which are responsible for appropriate assessment and effective management of all risks associated with their processes.

●

Independent Risk Management Units: Risk management areas include risk management and compliance departments. There are other control functions that are not part of these areas but are also key in risk mitigation of non-financial risks, including legal, human resources certain activities within the financial and administrative processes.

●

Corporate Audit: Corporate audit maintains its independence from the first and second lines by reporting directly to the Audit Committee or the Board. Corporate Audit provides independent assessment and validation through testing of key processes and controls across Grupo Aval.

The following sections outline the key financial risks that are inherent to the business activities of the subsidiaries:

Financial risks

Credit risk: the risk of financial loss if a debtor fails to meet their contractual obligations.

ii)

Market risk: the risk of loss arising from potential adverse movements in the value of the subsidiaries in the financial sector assets and liabilities or future results, arising as a result of changes in market variables such as interest rates, foreign exchange rates, equity prices, commodity prices, implied volatilities or credit spreads; this includes the structural interest rate and foreign exchange risks.

iii)

Interest rate risk: it is the current or potential risk to equity and profits that arise from adverse movements in interest rates, which affect the positions of the banking book.

iv)

Liquidity risk: the risk of being unable to meet contractual and contingent obligations or that the subsidiaries in the financial sector do not have the appropriate amount, composition and tenor of funding and liquidity to support the financial assets and liabilities requirements (funding liquidity risk). Also includes the capability to manage its investment portfolio in terms of liquidity, duration and currency (market liquidity risk).

Additionally, the risk areas are responsible for supporting capital management by determining risk levels of the calculation of capital adequacy requirements, impact assessment of the risk materialization on compliance with capital levels and determining the levels of risk appetite.

Objective and general guidelines of financial risk management

Grupo Aval’s and its subsidiaries of the financial sector objective is to maximize returns for its investors through strong risk management. The guiding principles of risk management at Grupo Aval are as follows:

Make risk management a part of every institutional process.

Collective decision making for the approval of commercial lending of significant amounts.

Extensive and in-depth industry and market knowledge, as a result of sound leadership and experienced, stable and seasoned senior management.

Clear risk management policies based on a top-down approach with respect to:

●

Compliance with know-your-customer policies.

●

Commercial loans credit structure based on clear identification of sources of repayment as well as cash flow generation capacity of the borrower.

Use of similar credit analysis tools for analysis across subsidiaries of financial sector.

Diversification of the commercial loan portfolio with respect to industries and economic groups.

Specialization in consumer product niches.

Extensive use of continuously updated scoring models and up-to-date credit ratings to ensure quality growth of loans with high credit quality.

We define policies in terms of:

●

Trading portfolio composition with bias towards lower volatility instruments.

●

Proprietary trading position.

●

Variable compensation for the trading staff.

Control the position-level exposures based on market risk sensitivities (such as VaR, DV01, Delta, Rho and Vega) and credit risk exposures by counterparties.

Concentration and diversification limits which are based on market liquidity and volatility, operational capacity, valuation and credit quality of counterparties.

Control and follow up on the funding and liquidity risk with independent oversight. This includes setting limits related to high quality liquid assets and maturity concentration of financial liabilities among others.

Ensuring compliance with regulatory limits and reviewing how the current and projected strategy can affect those limits.

Use of our market experience in the identification and implementation of best practices for risk management.

Main premises for risk management

Grupo Aval´s risk culture is based on the principles indicated in the section above, which are transmitted to all subsidiaries of the financial sector and business units. The strategy related to risk management is supported by the following guidelines:

In the financial sector subsidiaries of Grupo Aval, the risk function is independent of the business units. The segregation of functions between the business areas and the risk areas in charge of risk measurement analysis, control and reporting, provide enough independence and autonomy for proper risk control.

The decision-making process at the subsidiaries of the financial sector requires that transactions of significant amounts are sent to decision centers such as risk committees. The frequency of meetings of these committees ensures a high degree of agility regarding proposal resolution, and continuous participation of senior management in management of various risks.

Grupo Aval has corporate policies for the risks to which it is exposed. The business and risk units of Grupo Aval and its subsidiaries of the financial sector hold orientation meetings based on approaches to risk that are consistent with Grupo Aval´s risk culture.

Grupo Aval has implemented a risk system that is updated on a regular basis to address new conditions in the markets and the risks to which Grupo Aval is exposed.

There are adequate information systems to monitor risk exposure, ensure compliance with the approved policies and implement appropriate corrective actions as and when necessary.

Key risks are analyzed on a regular basis, not only when risks materialize or problems occur during the normal course of business but in a continuous process of risk management.

Grupo Aval and its subsidiaries of the financial sector have training courses on risk culture for all hierarchy levels in the organization.

A risk culture has been integrated throughout the organization, consisting of a series of attitudes, values, skills and guidelines to action.

Disclosure of risk management, credit risk [text block]

Financial Risk Review

4.1 Credit Risk

4.1.1 Consolidated Credit Risk Exposure

Grupo Aval´s subsidiaries are exposed to credit risk, consisting of the risk of financial loss as a result of a failure of a debtor to meet their contractual obligations in financial transactions on a timely and complete manner. Exposure to credit risk for Grupo Aval and its subsidiaries is a result of credit activities and transactions with counterparties.

The maximum exposure to credit risk of Grupo Aval, at a consolidated level is reflected in the carrying value of financial assets in the Consolidated Statement of Financial position of Grupo Aval as of December 31, 2025, and 2024 as follows:



Assets		December 31, 2025 ⁽¹⁾			December 31, 2024
Cash and cash equivalents ⁽²⁾		Ps.	15,685,267		Ps.	13,256,505
Trading investments in debt securities			17,582,844			11,937,414
Investments in debt securities mandatorily at FVTPL			—			1,425
Investments in debt securities at FVOCI ⁽³⁾			28,455,957			27,050,198
Investments in debt securities at amortized cost			9,205,457			10,708,367
Derivatives instruments ⁽⁴⁾			2,217,021			969,294
Hedging derivatives ⁽⁴⁾			236,558			54,019
Loans
Commercial			108,308,984			115,414,643
Consumer			60,456,213			61,976,325
Mortgage			22,111,710			22,035,727
Microcredit			1,520			4,375
Interbank and overnight funds			1,777,516			705,055
Other accounts receivable FVTPL⁽⁵⁾			2,635,437			4,181,835
Other accounts receivable at amortized cost			22,216,161			24,138,538
Total financial assets with credit risk		Ps.	290,890,645		Ps.	292,433,720
Financial instruments with credit risk outside of the statement of financial position at its nominal value
Financial guarantees and letters of credit			2,199,093			3,082,949
Credit commitments			29,419,499			25,593,472
Total exposure to credit risk outside of the statement of financial position ⁽⁶⁾		Ps.	31,618,592		Ps.	28,676,421
Total maximum exposure to credit risk		Ps.	322,509,237		Ps.	321,110,141

⁽¹⁾ As of December 2025, the assets related to Multi Financial Group (MFG) were no longer presented line-by-line on the Consolidated Statements of Financial Position and were instead reported in a single line item within “Non-current assets held for sale”, see note 13.A.

⁽²⁾ Not including funds in the entity’s custody (cash, tellers, vaults), because there is no credit risk regarding Grupo Aval entities. See Note 4.1.3 h.

⁽³⁾ See details in note 4.1.3.

⁽⁴⁾ See details in note 4.1.3 g.

⁽⁵⁾See Note 12.1 “Financial assets in concession arrangements”.

⁽⁶⁾ See details in note 4.1.9.

With regard to guarantees and commitments to extend credit amounts, the maximum credit risk exposure is the amount of a commitment. Credit risk is mitigated by guarantees and collaterals as described in note 4.1.4 Mitigation of Credit Risk, Collateral and Other Credit Risk Enhancements.

Each of Grupo Aval´s financial subsidiaries assume the credit risk for both the credit activities, which includes commercial, consumer, mortgage and microcredit credit lending, and treasury activities including interbank loans, investment portfolio management, derivatives and foreign currency trading activities among others. Despite being independent businesses, the nature of insolvency risk of a borrower or counterparty is similar and therefore the criteria in which they are evaluated is similar.

4.1.1.A. Loan portfolio disclosure

Loans are recorded at amortized cost in the Consolidated Statement of Financial Position, and are classified as commercial, consumer, residential mortgage, microcredit, interbank and overnight funds. The following table presents the portfolio balances, provision balances and net value portfolio by line of business:

December 31, 2025


							Total loan
Portfolio segment	Loan Portfolio			Loss allowance			Portfolio, net
Commercial	Ps.	108,308,984		Ps.	4,261,931		Ps.	104,047,053
Interbank and overnight funds		1,777,516			148			1,777,368
Commercial, interbank and overnight funds	Ps.	110,086,500		Ps.	4,262,079		Ps.	105,824,421
Consumer		60,456,213			3,664,776			56,791,437
Mortgage		22,111,710			502,155			21,609,555
Microcredit		1,520			960			560
Total portfolio ⁽¹⁾	Ps.	192,655,943		Ps.	8,429,970		Ps.	184,225,973

December 31, 2024


							Total loan
Portfolio segment	Loan Portfolio			Loss allowance			Portfolio, net
Commercial	Ps.	115,414,643		Ps.	5,362,893		Ps.	110,051,750
Interbank and overnight funds		705,055			795			704,260
Commercial, interbank and overnight funds	Ps.	116,119,698		Ps.	5,363,688		Ps.	110,756,010
Consumer		61,976,325			4,166,018			57,810,307
Mortgage		22,035,727			473,315			21,562,412
Microcredit		4,375			3,618			757
Total portfolio	Ps.	200,136,125		Ps.	10,006,639		Ps.	190,129,486

4.1.1.B Loan portfolio given as collateral

As of December 31, 2025 and 2024, there were no portfolio operations delivered as collateral in resource auction operations with Banco República.

4.1.2 Loan and Counterparty Approval Process for subsidiaries in the financial sector

The principles and rules for credit management and credit risk for each financial subsidiary are contained in the corresponding manuals, both for commercial banking activities and treasury activities. Evaluation criteria to measure credit risk follows the principal instructions set forth by the Treasury and Credit Risk Committees.

The maximum authority regarding lending is the Board of Directors for each bank, which approves the general policy and has the capacity to approve large size transactions. In the normal banking operation, authorizations for approval of loans and lines of credit depend on the amounts, credit quality, tenor and security collateral or guarantees offered by the client. The Board of Directors of each subsidiary has delegated part of its lending authorities to different committees and executives who process the credit requests and are responsible for the analysis and credit review.

Additionally, for the approval of credits, certain considerations are considered including but not limited to the probability of default, the recovery percentage of guarantees received, current customer exposure and tenor & concentration by economic sector.

Regarding treasury operations, the Boards of Directors approve lines of credit for counterparties. Risk control is essentially carried out through three mechanisms: periodic approval of lines of credit, evaluation of the conditions of the issuers at least annually and a report on concentrations for each client or economic group.

Although each financial subsidiary is responsible for its credit decisions and risk management, Grupo Aval as the holding entity, oversees the implementation of appropriate risk management controls at the financial subsidiaries through the Corporate Risk Unit.

The holding’s risk management staff meets on a periodically basis to discuss Grupo Aval subsidiaries’ loan portfolio, developments in industry, risks and opportunities. Additionally, Grupo Aval through the Credit Projects Unit reviews credit exposures approved by the Group's financial entities, in accordance with guidelines established based on financial indicators, group exposure limits, economic sectors and other relevant criteria. This process was designed to effectively leverage the combined equity of its Banks and support the proper identification and management of potential risk issues.

Each subsidiary of the financial sector has a Credit Risk Management System, which is managed by the risk vice-presidency or its equivalent, and includes, among others, the design, implementation and evaluation of policies and risk mechanisms defined by the Risk Committee and the Board of Directors of each entity. The operation of the Credit Risk Management System has resulted in the integration of risk measurement tools into the credit approval process in each of the financial subsidiaries.

Each subsidiary of the financial sector in Colombia primarily uses two models for evaluating credit risk for the approval of commercial loans. The first is the financial ratings model, which consists of statistical models based on the client´s financial information, which are used in the approval process and for portfolio management and monitoring. The second model is based on the client´s financial ratings and their historical payment behavior with the bank, used in the customer credit risk grade.

For retail loans (including mortgage loans and auto loans) models are based on product line characteristic, sociodemographic variables and the historical payment behavior of the clients with the bank and the financial sector, among others.

As a result of the changes caused by the national and international economic and political situation, periodically review and analyze whether it is necessary to adjust origination strategies, along with approved debt limits in accordance with individual risk analysis, especially for customers identified in high-risk sectors, segments, credit lines and among others.

4.1.3 Credit quality analysis

The Credit-risk Monitoring Process and Credit rating of the loan portfolio

The monitoring process and credit risk review of each financial subsidiary is carried out in several steps including portfolio analysis by vintages, risk level rating, permanent high-risk clients’ review, restructuring processes of operations and the receipt of foreclosed assets as payment.

Periodically the financial subsidiaries classify each client in one of these risk categories: Category Normal, Acceptable, Appreciable, Significant and Non - recoverability, based on the statistical models that each subsidiary has.

In addition, each bank evaluates the commercial portfolio by economic sectors, where macro-sectors are evaluated with the purpose of monitoring the concentration per economic sector and the risk level of each one.

At least once a year, each financial subsidiary carries out an individual analysis of credit risk based on updated financial information of the client, payment record, collateral security/guarantees received, credit bureau reports and other qualitative information available; based on the information, clients are classified by risk level as mentioned above.

Each risk category is explained as follows:

Category	PD*	Risk	Description
1	0%- 7.5%	Normal	Appropriately serviced. The debtor’s financial statements or their projected cash flows, as well as all other credit information available to us, reflect adequate paying capacity

2	7.5% - 15%	Acceptable above normal	Adequately serviced and protected, but there are weaknesses which may potentially affect, on a temporary or permanent basis, the debtor’s paying capacity or their projected cash flows to the extent that, if not timely corrected, would affect the collection of the credits as contracted
3	15% - 22.5%	Acceptable above normal

4	22.5% - 30%	Appreciable	Have debtors with insufficient paying capacity or relate to projects with insufficient cash flow, which may compromise the normal collection of the obligations
5	30% - 45%	Appreciable

6	45% - 60%	Significant	Have the same deficiencies as loans in category 4-5, but to a larger extent; consequently, the probability of collection is highly doubtful
7	60% - 90%	Significant

Category		PD*		Risk		Description
8		> 90%		Non-recoverability		Deemed uncollectible.

^(*) Probability of default – “PD” is the probability that the counterpart defaults in their payment obligations of capital and/or interest.

For mortgage loans and microcredits, the previous classification by risk levels is carried out monthly considering the number of days past due.

In addition, the credit risk exposure is managed through a periodic analysis of the borrowers (or potential borrowers) to determine the repayment capacity of capital and interest. The credit risk exposure is also mitigated partly by obtaining collateral security, corporate and personal guarantees.

The following table sets out information about the credit quality of financial assets measured at amortized cost. Unless specifically indicated, for financial assets, the amounts in the table represent gross carrying amounts. For loan commitments and financial guarantee contracts, the amounts in the table represent the amounts committed or guaranteed, respectively. Based on the foregoing classifications, each financial subsidiary establishes and executes collection strategies directed at maximizing the collection of the loan portfolio.

As of December 31, 2025, and 2024, the following is a summary of the most representative credit portfolio by probability of default. Explanation of the terms: Stage 1, Stage 2 and Stage 3 are included in Note 2 (2.5) (ix) and explained in detail in Note 4.1.5 (Measurement of Expected Credit Loss).

Total Portfolio


		December 31, 2025 ⁽¹⁾
		Total Exposure
PD Range		Stage 1			Stage 2			Stage 3			Total
0%- 7.5%		Ps.	165,440,008		Ps.	3,450,456		Ps.	45,850		Ps.	168,936,314
7.5% - 15%			6,670,078			828,542			4,860			7,503,480
15% - 22.5%			640,933			580,074			12,169			1,233,176
22.5% - 30%			122,067			258,569			432			381,068
30% - 45%			184,363			1,746,377			71,536			2,002,276
45% - 60%			55,985			611,877			55			667,917
60% - 90%			5,616			1,127,578			13,724			1,146,918
> 90%			545			57,902			10,726,347			10,784,794
TOTAL		Ps.	173,119,595		Ps.	8,661,375		Ps.	10,874,973		Ps.	192,655,943


		December 31, 2024
		Total Exposure
PD Range		Stage 1			Stage 2			Stage 3			Total
0%- 7.5%		Ps.	165,325,376		Ps.	2,733,552		Ps.	74,867		Ps.	168,133,795
7.5% - 15%			10,731,075			1,379,780			614			12,111,469
15% - 22.5%			535,897			447,250			97			983,244
22.5% - 30%			344,972			556,641			246			901,859
30% - 45%			185,460			1,570,202			1,795			1,757,457
45% - 60%			62,448			948,971			148			1,011,567
60% - 90%			9,205			1,818,316			105,882			1,933,403
> 90%			2,098			63,862			13,237,371			13,303,331
TOTAL		Ps.	177,196,531		Ps.	9,518,574		Ps.	13,421,020		Ps.	200,136,125

Commercial


		December 31, 2025 ⁽¹⁾
		Total Exposure
PD Range		Stage 1			Stage 2			Stage 3			Total
0%- 7.5%		Ps.	94,590,767		Ps.	2,072,599		Ps.	45,625		Ps.	96,708,991
7.5% - 15%			1,820,441			381,875			4,790			2,207,106
15% - 22.5%			94,162			38,927			12,158			145,247
22.5% - 30%			33,513			77,083			315			110,911
30% - 45%			44,839			1,111,043			71,456			1,227,338
45% - 60%			26,155			163,632			—			189,787
60% - 90%			2,380			70,348			7,486			80,214
> 90%			4			1,751			7,637,635			7,639,390
TOTAL		Ps.	96,612,261		Ps.	3,917,258		Ps.	7,779,465		Ps.	108,308,984


		December 31, 2024
		Total Exposure
PD Range		Stage 1			Stage 2			Stage 3			Total
0%- 7.5%		Ps.	95,690,974		Ps.	1,061,196		Ps.	74,525		Ps.	96,826,695
7.5% - 15%			5,926,757			789,697			603			6,717,057
15% - 22.5%			91,248			147,840			8			239,096
22.5% - 30%			113,165			213,759			225			327,149
30% - 45%			69,485			950,652			1,711			1,021,848
45% - 60%			33,092			223,917			38			257,047
60% - 90%			2,895			76,708			97,492			177,095
> 90%			289			481			9,847,886			9,848,656
TOTAL		Ps.	101,927,905		Ps.	3,464,250		Ps.	10,022,488		Ps.	115,414,643

Consumer


		December 31, 2025 ⁽¹⁾
		Total Exposure
PD Range		Stage 1			Stage 2			Stage 3			Total
0%- 7.5%		Ps.	48,569,942		Ps.	1,240,167		Ps.	225		Ps.	49,810,334
7.5% - 15%			4,848,792			343,976			63			5,192,831
15% - 22.5%			546,704			455,732			8			1,002,444
22.5% - 30%			88,554			166,718			115			255,387
30% - 45%			139,524			271,471			75			411,070
45% - 60%			29,830			377,910			53			407,793
60% - 90%			3,236			961,948			6,228			971,412
> 90%			541			55,852			2,348,549			2,404,942
TOTAL		Ps.	54,227,123		Ps.	3,873,774		Ps.	2,355,316		Ps.	60,456,213


		December 31, 2024
		Total Exposure
PD Range		Stage 1			Stage 2			Stage 3			Total
0%- 7.5%		Ps.	49,327,615		Ps.	1,473,359		Ps.	339		Ps.	50,801,313
7.5% - 15%			4,600,920			439,437			11			5,040,368
15% - 22.5%			377,855			148,417			89			526,361
22.5% - 30%			230,075			231,107			21			461,203
30% - 45%			115,355			342,328			84			457,767
45% - 60%			29,356			511,606			110			541,072
60% - 90%			6,280			1,478,181			8,389			1,492,850
> 90%			1,809			62,817			2,590,765			2,655,391
TOTAL		Ps.	54,689,265		Ps.	4,687,252		Ps.	2,599,808		Ps.	61,976,325

Mortgage


		December 31, 2025 ⁽¹⁾
		Total Exposure
PD Range		Stage 1			Stage 2			Stage 3			Total
0%- 7.5%		Ps.	20,501,276		Ps.	137,690		Ps.	—		Ps.	20,638,966
7.5% - 15%			809			102,691			7			103,507
15% - 22.5%			67			85,415			3			85,485
22.5% - 30%			—			14,768			2			14,770
30% - 45%			—			363,857			5			363,862
45% - 60%			—			70,335			2			70,337
60% - 90%			—			95,282			10			95,292
> 90%			—			299			739,192			739,491
TOTAL		Ps.	20,502,152		Ps.	870,337		Ps.	739,221		Ps.	22,111,710


		December 31, 2024
		Total Exposure
PD Range		Stage 1			Stage 2			Stage 3			Total
0%- 7.5%		Ps.	19,602,506		Ps.	198,997		Ps.	3		Ps.	19,801,506
7.5% - 15%			201,894			150,646			—			352,540
15% - 22.5%			66,794			150,993			—			217,787
22.5% - 30%			1,718			111,771			—			113,489
30% - 45%			617			277,207			—			277,824
45% - 60%			—			213,437			—			213,437
60% - 90%			—			263,418			1			263,419
> 90%			—			564			795,161			795,725
TOTAL		Ps.	19,873,529		Ps.	1,367,033		Ps.	795,165		Ps.	22,035,727

Interbank and overnight funds


		December 31, 2025 ⁽¹⁾
		Total Exposure
PD Range		Stage 1			Stage 2			Stage 3			Total
0%- 7.5%		Ps.	1,777,516		Ps.	—		Ps.	—		Ps.	1,777,516
7.5% - 15%			—			—			—			—
15% - 22.5%			—			—			—			—
22.5% - 30%			—			—			—			—
30% - 45%			—			—			—			—
45% - 60%			—			—			—			—
60% - 90%			—			—			—			—
> 90%			—			—			—			—
TOTAL		Ps.	1,777,516		Ps.	—		Ps.	—		Ps.	1,777,516


		December 31, 2024
		Total Exposure
PD Range		Stage 1			Stage 2			Stage 3			Total
0%- 7.5%		Ps.	703,863		Ps.	—		Ps.	—		Ps.	703,863
7.5% - 15%			1,192			—			—			1,192
15% - 22.5%			—			—			—			—
22.5% - 30%			—			—			—			—
30% - 45%			—			—			—			—
45% - 60%			—			—			—			—
60% - 90%			—			—			—			—
> 90%			—			—			—			—
TOTAL		Ps.	705,055		Ps.	—		Ps.	—		Ps.	705,055

Loan commitments and financial guarantee contracts


		December 31, 2025 ⁽¹⁾
		Total Exposure
PD Range		Stage 1			Stage 2			Stage 3			Total
0%- 7.5%		Ps.	29,737,149		Ps.	79,137		Ps.	1,020		Ps.	29,817,306
7.5% - 15%			626,507			564,672			199			1,191,378
15% - 22.5%			49,011			135,096			121			184,228
22.5% - 30%			17,503			13,908			65			31,476
30% - 45%			5,137			136,229			160			141,526
45% - 60%			1,066			56,557			195			57,818
60% - 90%			235			1,943			675			2,853
> 90%			14			431			191,562			192,007
TOTAL		Ps.	30,436,622		Ps.	987,973		Ps.	193,997		Ps.	31,618,592


		December 31, 2024
		Total Exposure
PD Range		Stage 1			Stage 2			Stage 3			Total
0%- 7.5%		Ps.	25,001,252		Ps.	65,537		Ps.	666		Ps.	25,067,455
7.5% - 15%			460,057			437,341			46			897,444
15% - 22.5%			79,091			2,207,502			39			2,286,632
22.5% - 30%			22,053			6,514			29			28,596
30% - 45%			12,330			133,364			179			145,873
45% - 60%			539			74,023			52			74,614
60% - 90%			244			2,867			334			3,445
> 90%			5			2,370			169,987			172,362
TOTAL		Ps.	25,575,571		Ps.	2,929,518		Ps.	171,332		Ps.	28,676,421

Credit quality of financial assets (excluding loan portfolio)

The following is the breakdown of the different financial assets excluding loan portfolio, by credit risk level and type of issuer based on the rating issued by the independent credit ratings agency. A financial asset is considered investment grade if its credit rating is BBB- or higher by Standard & Poor's or Fitch Ratings scale, Baa3 or higher by Moody's scale, F3 or higher by Fitch Ratings Colombia S.A or BRC3 or higher by BRC of Colombia. Otherwise, the financial asset is considered speculative.

Trading investment in debt securities


		December 31, 2025 ⁽¹⁾			December 31, 2024
Investment grade
Sovereign ⁽²⁾⁽⁴⁾		Ps.	492,675		Ps.	10,699,113
Other public entities ⁽³⁾			107,722			12,450
Corporate			3,781			3,996
Financial entities			126,993			161,465
Total investment grade		Ps.	731,171		Ps.	10,877,024
Speculative grade
Sovereign ⁽²⁾⁽⁴⁾		Ps.	15,817,843		Ps.	17,824
Other public entities ⁽³⁾			105,357			171,310
Corporate			22,896			30,527
Financial entities			905,577			840,729
Total Speculative grade		Ps.	16,851,673		Ps.	1,060,390
		Ps.	17,582,844		Ps.	11,937,414

⁽²⁾ A sovereign credit rating considers the risk of Treasury issuer or similar agency (government debt portfolio).

⁽³⁾ Corresponds to operations with government entities, including public administration in general (including regional and local governments).

⁽⁴⁾ During 2025, S&P Global Ratings downgraded the Government of Colombia’s rating from BBB- to BB+, which meant that the risk level shifted from investment grade to speculative.

Investments in debt securities mandatorily at FVTPL


		December 31, 2025			December 31, 2024
Speculative grade
Corporate⁽¹⁾		Ps.	—		Ps.	1,425
Total Speculative grade		Ps.	—		Ps.	1,425

⁽¹⁾ Corresponds to the BOCEA issued by Titularizadora Colombiana, in which Banco AV Villas held a position. At maturity, on December 16, 2025, the entity exercised its right to convert the instrument into shares

Investments in debt securities at FVOCI


		December 31, 2025⁽¹⁾
		Stage 1			Stage 2			Stage 3			Total
Investment grade
Sovereign ⁽²⁾⁽⁴⁾		Ps.	1,306,564		Ps.	—		Ps.	—		Ps.	1,306,564
Other public entities ⁽³⁾			91,016			—			—			91,016
Corporate			38,230			—			—			38,230
Financial entities			915,762			—			—			915,762
Multilateral			51,853			—			—			51,853
Total investment grade		Ps.	2,403,425		Ps.	—		Ps.	—		Ps.	2,403,425
Speculative grade
Sovereign ⁽²⁾⁽⁴⁾		Ps.	24,622,925		Ps.	—		Ps.	—		Ps.	24,622,925
Other public entities ⁽³⁾			415,235			—			—			415,235
Corporate			159,981			—			—			159,981
Financial entities			774,550			—			—			774,550
Multilaterals			8,712			—			—			8,712
Total speculative grade		Ps.	25,981,403		Ps.	—		Ps.	—		Ps.	25,981,403
Without Grade or Not available
Financial Entities		Ps.	63,234		Ps.	—		Ps.	—		Ps.	63,234
Sovereign⁽²⁾			7,895			—			—			7,895
Total Without Grade or Not available		Ps.	71,129		Ps.	—		Ps.	—		Ps.	71,129
		Ps.	28,455,957		Ps.	—		Ps.	—		Ps.	28,455,957

⁽²⁾ Sovereign credit rating is considered as the risk of the Treasury issuer or a similar agency (government debt portfolio).

⁽³⁾ Corresponds to operations with government entities; including public administrations in general (includes regional and local governments).

⁽⁴⁾ During 2025, S&P Global Ratings downgraded the Government of Colombia’s rating from BBB- to BB+, which meant that the risk level shifted from investment grade to speculative.


		December 31, 2024
			Stage 1			Stage 2			Stage 3			Total
Investment grade
Sovereign ⁽¹⁾		Ps.	19,577,886		Ps.	—		Ps.	—		Ps.	19,577,886
Other public entities ⁽²⁾			33,584			—			—			33,584
Central banks			204,855			—			—			204,855
Corporate			66,347			—			—			66,347
Financial entities			1,447,702			—			—			1,447,702
Multilaterals			333,279			—			—			333,279
Total investment grade		Ps.	21,663,653		Ps.	—		Ps.	—		Ps.	21,663,653
Speculative grade
Sovereign ⁽¹⁾		Ps.	3,192,832		Ps.	—		Ps.	—		Ps.	3,192,832
Other public entities ⁽²⁾			429,161			—			—			429,161
Corporate			367,087			—			—			367,087


		December 31, 2024
			Stage 1			Stage 2			Stage 3			Total
Financial entities			1,134,852			—			—			1,134,852
Multilaterals			4,274			—			—			4,274
Total speculative grade		Ps.	5,128,206		Ps.	—		Ps.	—		Ps.	5,128,206
Without Grade or Not available
Corporate		Ps.	214,110		Ps.	—		Ps.	—			214,110
Financial entities			44,229			—			—			44,229
Total Without Grade or Not available		Ps.	258,339		Ps.	—		Ps.	—		Ps.	258,339
		Ps.	27,050,198		Ps.	—		Ps.	—		Ps.	27,050,198

⁽¹⁾ Sovereign credit rating is considered as the risk of the Treasury issuer or a similar agency (government debt portfolio).

⁽²⁾ Corresponds to operations with government entities; including public administrations in general (includes regional and local governments).

Investments in debt securities at amortized cost

December 31, 2025⁽¹⁾

 

Stage 1

 

Stage 2

 

Stage 3

 

Total

Investment grade

Sovereign ⁽²⁾⁽⁴⁾

Ps.

30,540

Ps.

—

Ps.

—

Ps.

30,540

Financial entities

1,963,450

—

1,963,450

Total investment grade

Ps.

1,993,990

Ps.

—

Ps.

—

Ps.

1,993,990

Speculative grade

Other public entities ⁽³⁾

Ps.

5,351,209

Ps.

—

Ps.

—

Ps.

5,351,209

Sovereign ⁽²⁾⁽⁴⁾

1,860,258

—

1,860,258

Total speculative grade

Ps.

7,211,467

Ps.

—

Ps.

—

Ps.

7,211,467

Ps.

9,205,457

Ps.

—

Ps.

—

Ps.

9,205,457

⁽¹⁾As of December 2025, the assets related to Multi Financial Group (MFG) were no longer presented line-by-line on the Consolidated Statements of Financial Position and were instead reported in a single line item within “Non-current assets held for sale”, see note 13.A.

⁽²⁾Sovereign credit rating is considered as the risk of the Treasury issuer or a similar agency (government debt portfolio).

⁽³⁾ Corresponds to operations with government entities; including public administrations in general (includes regional and local governments).

⁽⁴⁾ During 2025, S&P Global Ratings downgraded the Government of Colombia’s rating from BBB- to BB+, which meant that the risk level shifted from investment grade to speculative.


		December 31, 2024
			Stage 1			Stage 2			Stage 3			Total
Investment grade
Sovereign ⁽¹⁾		Ps.	2,584,348		Ps.	—		Ps.	—		Ps.	2,584,348
Financial entities			2,321,902			—			—			2,321,902
Total investment grade		Ps.	4,906,250		Ps.	—		Ps.	—		Ps.	4,906,250
Speculative grade
Other public entities⁽²⁾		Ps.	5,563,208		Ps.	—		Ps.	—		Ps.	5,563,208
Corporate			64,709			—			—			64,709
Financial entities			6,647			—			—			6,647
Total speculative grade		Ps.	5,634,564		Ps.	—		Ps.	—		Ps.	5,634,564
Without Grade or Not available
Corporate		Ps.	76,915		Ps.	68,638		Ps.	—		Ps.	145,553
Financial Entities			22,000			—			—			22,000
Total Without Grade or Not available		Ps.	98,915		Ps.	68,638		Ps.	—		Ps.	167,553
		Ps.	10,639,729		Ps.	68,638		Ps.	—		Ps.	10,708,367

⁽¹⁾ Sovereign credit rating is considered as the risk of the Treasury issuer or a similar agency (government debt portfolio).

⁽²⁾ Corresponds to operations with government entities; including public administrations in general (includes regional and local governments).

Other accounts receivable at FVTPL


		December 31, 2025			December 31, 2024
Investment grade
Sovereign ^(1)(2)(4)		Ps.	—		Ps.	4,181,835
Total investment grade		Ps.	—		Ps.	4,181,835
Speculative grade
Sovereign ^(1)(2)(3)(4)		Ps.	2,635,437		Ps.	—
Total speculative grade		Ps.	2,635,437		Ps.	—
		Ps.	2,635,437		Ps.	4,181,835

⁽¹⁾ Sovereign credit rating is considered as the risk of the Treasury issuer or a similar agency (government debt portfolio).

⁽²⁾ Sovereign corresponds to the financial assets in concession arrangements rights at fair value.

⁽³⁾During 2025, S&P Global Ratings downgraded the Government of Colombia’s rating from BBB- to BB+, which meant that the risk level shifted from investment grade to speculative.

⁽⁴⁾ See Note 12.1 “Financial assets in concession arrangements”.

Other account receivable at amortized cost

Other accounts receivable at amortized cost
		December 31, 2025⁽¹⁾
		Stage 1		Stage 2		Stage 3		Simplified Approach		Total
Other receivables using general approach
Other accounts receivable and contract assets for government and corporate customers	Ps.	15,180,937	Ps.	—	Ps.	—	Ps.	—	Ps.	15,180,937
Other accounts receivable related to gas, energy services, contributions and others		1,343,088		144,086		173,848		—		1,661,022
Other receivables using simplified approach
Other accounts receivable from individual customers		—		—		—		5,374,202		5,374,202
Total other receivables	Ps.	16,524,025	Ps.	144,086	Ps.	173,848	Ps.	5,374,202	Ps.	22,216,161

⁽¹⁾ As of December 2025, the assets related to Multi Financial Group (MFG) were no longer presented line by line on the Consolidated Statements of Financial Position and were instead reported in a single line item within “Non current assets held for sale”, see note 13.A.


		December 31, 2024
		Stage 1		Stage 2		Stage 3		Simplified Approach		Total
Other receivables using general approach
Other accounts receivable and contract assets for government and corporate customers	Ps.	15,962,982	Ps.	—	Ps.	1,298	Ps.	—	Ps.	15,964,280
Other accounts receivable related to gas, energy services, contributions and others		1,497,946		130,745		144,634		—		1,773,325
Other receivables using simplified approach
Other accounts receivable from individual customers		—		—		—		6,400,933		6,400,933
Total other receivables	Ps.	17,460,928	Ps.	130,745	Ps.	145,932	Ps.	6,400,933	Ps.	24,138,538

Evaluated using general approach

The following table provides information about the exposure to credit risk for other accounts receivable and contract assets for corporate customers as of December 31, 2025 and 2024. The credit quality of these financial assets follows the methodology of the probability of default of debt securities and other liquid financial assets (See note 4.1.5).

December 31, 2025

Stage 1

Stage 2

Stage 3

Total

Speculative grade

Sovereign ⁽¹⁾⁽²⁾

Ps.

15,180,937

Ps.

—

Ps.

—

Ps.

15,180,937

Total speculative grade

Ps.

15,180,937

Ps.

—

Ps.

—

Ps.

15,180,937

⁽¹⁾ Sovereign credit rating is considered as the risk of the Treasury issuer or a similar agency (government debt portfolio).

⁽²⁾ During 2025, S&P Global Ratings downgraded the Government of Colombia’s rating from BBB- to BB+, which meant that the risk level shifted from investment grade to speculative.

December 31, 2024

Stage 1

Stage 2

Stage 3

Total

Investment grade

Sovereign ⁽¹⁾

Ps.

15,962,982

Ps.

—

Ps.

—

Ps.

15,962,982

Corporate

—

1,298

Total investment grade

Ps.

15,962,982

Ps.

—

Ps.

1,298

Ps.

15,964,280

⁽¹⁾ Sovereign credit rating is considered as the risk of the Treasury issuer or a similar agency (government debt portfolio).

The following table provides information about the exposure to credit risk by segment for accounts receivable related to gas and energy services, the methodology used to estimate the ECLs is the same used for Loan and Receivable (See note 4.1.5).


	December 31, 2025
	Stage 1		Stage 2		Stage 3		Total
Segmentation
Contributions	Ps.	322,655	Ps.	—	Ps.	—	Ps.	322,655
Gas		796,782		129,623		111,538		1,037,943
Energy		118,477		14,463		62,310		195,250
Other accounts receivable		105,174		—		—		105,174
Total segmentation	Ps.	1,343,088	Ps.	144,086	Ps.	173,848	Ps.	1,661,022


	December 31, 2024
	Stage 1		Stage 2		Stage 3		Total
Segmentation
Contributions	Ps.	308,014	Ps.	—	Ps.	—	Ps.	308,014
Gas		843,852		119,622		90,587		1,054,061
Energy		110,794		11,123		54,047		175,964
Other accounts receivable		235,286		—		—		235,286
Total segmentation	Ps.	1,497,946	Ps.	130,745	Ps.	144,634	Ps.	1,773,325

Evaluated using simplified approach

Grupo Aval uses a probability matrix to measure the ECL for other receivables from individual customers, which have small balances.

The weighted-average loss rate is calculated using a “rolling rate” method based on the probability that a receivable will progress through successive stages of default until write off. The rolling rate is calculated for exposures in different segments and separately in accordance with the following common features of credit risk.

The following table provides information about the exposure to credit risk and ECLs for trade receivables and contract assets from individual customers as of December 31, 2025 and 2024.


		Weighted-		Gross
		(average loss		carrying			Loss			Credit-
December 31, 2025 ⁽¹⁾		rate )		amount			allowance			impaired
0–30 days past due		0.88	%	Ps.	3,808,294		Ps.	33,380	Ps.	—
31–60 days past due		0.82	%		113,701			927		—
61–90 days past due		0.22	%		456,361			1,022		—
More than 90 days past due		18.67	%		995,846			185,930		995,846
				Ps.	5,374,202		Ps.	221,259	Ps.	995,846


		Weighted-		Gross
		(average loss		carrying			Loss			Credit-
December 31, 2024		rate )		amount			allowance			impaired
0–30 days past due		0.54	%	Ps.	5,021,674		Ps.	26,971	Ps.	—
31–60 days past due		1.11	%		128,404			1,428		—
61–90 days past due		0.94	%		179,719			1,682		—
More than 90 days past due		13.88	%		1,071,136			148,658		1,071,136
				Ps.	6,400,933		Ps.	178,739	Ps.	1,071,136

The loss rates are based on the experience of real credit loss during a year and the balance of accounts receivable at the cut-off date for previously defined homogeneous segments. It takes into consideration elements such as: segmentation by type of receivable account, date of analysis, definition of loss, among others. Based on the characteristics of the short-term receivable accounts, these portfolios result from operations where there are no non-linear impacts, therefore, the application of macroeconomic scenarios is not considered.

Derivative instruments

The details of credit rating determined by independent credit rating agents of counterparties in trading derivatives and hedge derivatives in active position are as follows:


Credit worthiness		December 31, 2025			December 31, 2024
Investment grade		Ps.	1,550,274		Ps.	622,273
Speculative			265			774
Without grade or not available			903,040			400,266
Total		Ps.	2,453,579		Ps.	1,023,313

The following table shows an analysis of counterparty credit exposures that arise from derivative transactions. Transactions derived from Grupo Aval are generally fully guaranteed with cash:

Trading derivatives


		Total				Central counterparties
		Notional		Fair		Notional		Fair
		amount		value		amount		value
2025
Derivative assets	Ps.	91,807,958	Ps.	2,217,021	Ps.	2,770,287	Ps.	25,614
Derivative liabilities		73,825,664		1,951,439		3,682,966		36,037
2024
Derivative assets	Ps.	104,988,291	Ps.	969,294	Ps.	14,317,598	Ps.	10,246
Derivative liabilities		64,053,439		1,011,934		10,715,432		6,646

Hedging derivatives



		Total				Central counterparties
		Notional		Fair		Notional		Fair
		amount		value		amount		value
2025
Derivative assets	Ps.	6,262,723	Ps.	236,558	Ps.	—	Ps.	—
Derivative liabilities		6,581,577		34,842		—		—
2024
Derivative assets	Ps.	7,330,349	Ps.	54,019	Ps.	—	Ps.	—
Derivative liabilities		2,355,232		21,658		—		—

Derivative transactions of Grupo Aval are collateralized by cash of Ps. (378,080) as of December 31, 2025, and of Ps. (246,003) as of December 31, 2024, see note 4.1.10 “Offset of financial assets and liabilities”.

Cash and cash equivalents

Grupo Aval held cash and cash equivalents of Ps. 19,354,710 as of December 31, 2025 (2024: Ps. 16,998,859). The cash and cash equivalents are held in central banks and financial institution counterparties. The following table shows an analysis of counterparty credit exposures:


		December 31, 2025			December 31, 2024
Investment grade		Ps.	10,978,851		Ps.	13,256,226
Central bank			—			4,166,796
Financial entities ⁽³⁾			10,978,851			9,089,430
Speculative grade			4,705,916			—
Central bank ⁽²⁾			4,705,916			—
Without grade or not available			500			279
Checks in Clearing			500			279
Cash and cash equivalent with third parties		Ps.	15,685,267		Ps.	13,256,505
Cash held by entity ⁽¹⁾		Ps.	3,669,443		Ps.	3,742,354
Total		Ps.	19,354,710		Ps.	16,998,859

⁽¹⁾ Cash held by each Grupo Aval’s bank in custody in vaults, ATMs and cash.

⁽²⁾During 2025, S&P Global Ratings downgraded the Government of Colombia’s rating from BBB- to BB+, which meant that the risk level shifted from investment grade to speculative.

⁽³⁾ As of December 2025, the assets related to Multi Financial Group (MFG) were no longer presented line-by-line on the Consolidated Statements of Financial Position and were instead reported in a single line item within “Non-current assets held for sale”, see note 13.A.

4.1.4 Mitigation of Credit Risk and Collateral

The exposure to credit risk for each of Grupo Aval´s financial subsidiaries is reduced by collateral and other credit enhancements. The existence of collateral security or guarantees can be a requirement but not a determining factor in approval of a credit. Credit risk policies of Grupo Aval require an evaluation of the debtor’s payment capacity based on the debtor´s ability to generate the resources needed for the timely and complete payment of their obligations.

Credit risk management includes the following activities:

●

Analysis of credit risk: For commercial lending, tools are used for the individual evaluation of credits based on payment capacity supported on cash generation, credit rating models with inputs from historical and projected financial condition, and on the payment history of the debtor with the financial sector. For interbank and overnight funds, the Camel Model is used to analyze financial institutions according to six factors represented by capital adequacy, assets quality, management, earnings, liquidity, and sensitivity. For consumer lending (including mortgages and auto financing), scoring models are based on characteristics of each credit line and in terms of clients, sociodemographic variables and payment behavior with both then bank and the financial sector.

●

Evaluation of collateral security / guarantees with appropriate debt coverage in accordance with the credit policies of each financial subsidiary. Collateral security includes mortgages on real estate, pledge on assets, cash deposits and investments.

●

Evaluation of the liquidity of the collateral security / guarantees received.

The methods used for the evaluation of collateral security / guarantees are aligned with the market practices and include the use of independent real estate appraisers or the market value of securities. All collateral security / guarantees must be legally evaluated and drafted following the parameters of applicable legal regulations.

Mortgage lending

The following tables classify credit exposures for mortgage loans and advances to retail customers by ranges of loan-to-value (LTV) ratio. LTV is calculated as the ratio of the gross amount of the loan – or the amount of the loan commitments – to the value of the collateral. The value of the collateral for mortgage loans is based on the collateral value at origination updated based on changes in housing price indices.


		December 31, 2025 ⁽¹⁾			December 31, 2024
LTV ratio
Less than 50%		Ps.	10,559,114		Ps.	9,427,666
51 – 70%			8,779,050			7,820,690
71 – 90%			2,382,447			3,964,073
91 – 100%			206,889			556,783
More than 100%			184,210			266,515
Total		Ps.	22,111,710		Ps.	22,035,727

Credit-impaired mortgage loans

For credit-impaired loans the value of collateral is based on the most recent appraisals.


		December 31, 2025 ⁽¹⁾			December 31, 2024
LTV ratio
Less than 50%		Ps.	240,489		Ps.	205,345
51 – 70%			360,955			320,667
More than 70%			137,777			269,153
Total		Ps.	739,221		Ps.	795,165

As of December 31, 2025, and 2024, the following chart shows the detail of the credit portfolio per type of guarantees received:


														Interbank and
December 31, 2025 ⁽¹⁾		Commercial			Consumer			Mortgages			Microcredit			overnight funds			Total
Unsecured credits		Ps.	61,243,730		Ps.	55,974,691		Ps.	1,786		Ps.	1,114		Ps.	1,757,987		Ps.	118,979,308
Loans secured by other banks			87,323			51			—			—			—			87,374
Collateralized credits:
Mortgages			1,946,394			156,255			19,587,117			32			—			21,689,798
Other real estate			8,088,980			81,630			110			374			—			8,171,094
Investments in equity instruments			554,447			—			—			—			—			554,447
Deposits in cash or cash equivalents			203,654			590			—			—			—			204,244
Leased machineries and vehicles			9,906,607			12,663			2,516,519			—			—			12,435,789
Fiduciary agreements, standby letters and guarantee funds			10,773,682			20,279			6,178			—			—			10,800,139
Pledged income			4,178,321			—			—			—			—			4,178,321
Pledges			3,414,726			4,181,387			—			—			—			7,596,113
Other assets			7,911,120			28,667			—			—			19,529			7,959,316
Total gross loan portfolio		Ps.	108,308,984		Ps.	60,456,213		Ps.	22,111,710		Ps.	1,520		Ps.	1,777,516		Ps.	192,655,943


														Interbank and
December 31, 2024		Commercial			Consumer			Mortgages			Microcredit			overnight funds			Total
Unsecured credits		Ps.	66,304,089		Ps.	55,712,783		Ps.	804		Ps.	3,601		Ps.	477,144		Ps.	122,498,421
Loans secured by other banks			95,043			247			—			—			—			95,290
Collateralized credits:
Mortgages			1,558,240			136,137			19,694,826			42			—			21,389,245
Other real estate			13,157,554			255,098			862			481			—			13,413,995
Investments in equity instruments			358,719			—			—			—			—			358,719
Deposits in cash or cash equivalents			1,117,748			202,268			—			—			—			1,320,016

Leased machineries and vehicles		8,923,078		18,212		2,320,866		—		—		11,262,156
Fiduciary agreements, standby letters and guarantee funds		10,201,495		20,411		18,366		245		—		10,240,517
Pledged income		3,681,176		—		—		—		—		3,681,176
Pledges		3,345,798		5,554,335		3		—		—		8,900,136
Other assets		6,671,703		76,834		—		6		227,911		6,976,454
Total gross loan portfolio	Ps.	115,414,643	Ps.	61,976,325	Ps.	22,035,727	Ps.	4,375	Ps.	705,055	Ps.	200,136,125

As of December 31, 2025, and 2024, the following chart sets out the carrying amount and the value of identifiable collateral (mainly commercial property) for commercial loans held by Grupo Aval at a consolidated level:

December 31, 2025 ⁽¹⁾

December 31, 2024

 

Carrying Amount

 

Collateral

Carrying Amount

Collateral

Stages 1 and 2

Ps.

31,416,687

Ps.

23,001,651

Ps.

34,004,844

Ps.

25,569,949

Stage 3

2,506,258

2,172,552

3,404,067

2,840,416

Ps.

33,922,945

Ps.

25,174,203

Ps.

37,408,911

Ps.

28,410,365

4.1.5 Amounts arising from Expected Credit Loss (ECL)

Definition of Default

Grupo Aval considers a financial asset to be in default when:

●

The borrower is unlikely to pay its credit obligations to Grupo Aval in full. Without prejudice, Grupo Aval takes actions such as realizing collateral (if any is held); or

●

The borrower is more than 90 days past due on any material credit obligation other than mortgages to Grupo Aval. Overdrafts are considered past due once the customer has breached the allowed tenor or been advised of the reduction of the limit;

●

For mortgages, when the borrower is more than 180 days past due;

●

The borrower is in a state of restructuring, bankruptcy proceedings or business reorganization.

●

In the case of fixed income financial securities, the following concepts among others apply:

External rating of the issuer or instrument in rating D under Standard & Poor’s and Fitch Ratings scale or rating C under Moody’s scale,

Contractual payments are not made on the due date.

There is a very high probability of suspension of payments.

The issuer likely to go bankrupt or file for bankruptcy or similar action.

The financial asset no longer has an active market given its financial difficulties.

In assessing whether a borrower is in default, Grupo Aval considers indicators as follows:

●

Qualitative: e.g. breaches of non-financial covenants;

●

Quantitative: e.g. breaches of financial covenants, overdue status and non-payment of another obligation of the same issuer to Grupo Aval; and

●

Based on internally historical or developed data and obtained from external sources.

Inputs used in the assessment of whether a financial instrument is in default may vary over time to reflect changes in circumstances.

Inputs, assumptions and techniques used to estimate expected credit loss allowance

Credit risk models measure the exposure for individual counterparties, based on the following parameters: probability of default (PD), loss given default (LGD) and exposure at default (EAD). For a specific credit facility (loans, debt securities, other liquid financial

assets, other accounts receivable, loan commitments and financial guarantee contracts) the product of these three parameters results in the expected credit loss. See accounting policy in Note 2 (2.5 ix).

Measurement of ECL

The measurement of expected credit losses is a calculation that involves an important number of interrelated inputs and assumptions, such as the financial asset’s probability of default, loss given default and exposure at default, which are modelled based on macroeconomic variables. Furthermore, the determination of the ECL requires the application of expert credit judgment to assess the current situation.

As mentioned above, the key inputs for the measurement of ECLs are usually the following variables:

●

Probability of default (PD);

●

Loss given default (LGD); and

●

Exposure at default (EAD).

The estimation of these parameters depends on the credit facility. Loans and receivables methodology uses information derived from internally developed statistical models, comprising both quantitative and qualitative factors, and other historical data. On the other hand, debt securities methodology incorporates relevant external market information or international credit ratings.

PD is the probability that a counterparty defaults in its payment obligations of capital and/or interest. Credit risk grades are the primary input in the determination of the term structure of PD for exposures. Grupo Aval collects performance and default information about its credit risk exposures analyzed by jurisdiction or region, by type of product and borrower, and by credit risk grade. For some portfolios, information purchased from external credit bureaus may also be used.

Grupo Aval employs statistical models to analyze the data collected and generates estimates of the remaining lifetime PD of exposures and how these are expected to change as a result of the passage of time.

LGD is an estimate of the loss arising at default, which is computed as a percentage of exposure that the entity ultimately expects to lose in the event of a default in a financial instrument.

Grupo Aval estimates LGD parameters based on the history of recovery rates of claims against defaulted counterparties. The LGD models considers the collateral structure, seniority of the claim, counterparty industry and recovery costs of any collateral that is integral to the financial asset. For loans secured/ guaranteed by real estate, loan-to-value (LTV) ratios will be a key parameter in determining LGD. Estimates are calibrated for different economic scenarios and, for real estate lending, to reflect possible changes in property prices.

The EAD represents the expected exposure in the event of default. Grupo Aval derives the EAD from the current exposure to the counterparty and potential changes to the current amount allowed under the contract, including amortization and prepayments. The EAD of a financial asset is the gross carrying amount at default. For lending commitments and financial guarantees, the EAD considers the amount drawn, as well as potential future amounts that may be drawn or repaid under the contract, which are estimated based on historical observations and forward-looking forecasts.

Subject to using the Lifetime PD for financial assets for which credit risk has significantly increased, Grupo Aval measures ECLs considering the risk of default over the maximum contractual period (including any borrower’s extension options) over which there is exposure to credit risk, even if for risk management purposes, Grupo Aval considers a longer period. The maximum contractual period extends to the date at which Grupo Aval has the right to require repayment of an advance or terminate a loan commitment or guarantee.

For retail overdrafts, credit cards, and certain corporate revolving facilities that include both a loan and an undrawn commitment component, Grupo Aval measures ECLs over a period longer than the maximum contractual period if Grupo Aval’s contractual ability to demand repayment and cancel the undrawn commitment does not limit Grupo Aval’s exposure to credit losses to the contractual notice period. These facilities do not have a fixed term or repayment structure and are managed on a collective basis. Grupo Aval can cancel them with immediate effect, but the contractual right is not enforced in the normal day-to-day management, but rather when Grupo Aval becomes aware of an increase in credit risk of a particular facility. This period is estimated considering the credit risk management actions that Grupo Aval expects to mitigate ECLs. These include a reduction in the limits and the cancellation of the credit.

Where modelling of a parameter is carried out on a collective basis, the financial instruments are grouped based on shared risk characteristics that include:

●

Instrument type;

●

Credit risk ratings;

●

Collateral type;

●

Date of initial recognition;

●

Remaining term to maturity; and

●

Industry;

The groups are subject to regular review to ensure that exposures within a particular group remain appropriately homogeneous.

In addition, for significant impaired loans, allowance estimates are made through individual evaluation based on quantitative criteria, such as the methods contemplated in IFRS 9 of discounted cash flow and fair value of the guarantee, and qualitative criteria that involve knowledge of the customer's current situation, the environment in which it carries out its activities, legal or bankruptcy proceedings and expert judgment, among other aspects.

Credit Risk Model: Loans and receivables

I. Transitions between stages

Significant Increase in Credit Risk

When determining whether the credit risk (i.e. risk of default) of a financial instrument has increased significantly since initial recognition, Grupo Aval considers reasonable and supportable information that is relevant and available without undue cost or effort, including both quantitative and qualitative information and analysis based on Grupo Aval’s historical experience, expert credit assessment and forward-looking information.

The following criteria are used to determine if a significant increase in credit risk has occurred:

●

Comparison of the remaining lifetime probability of default (PD) at the reporting date with the lifetime PD at initial recognition of the exposure.

●

Quantitative aspects such as credits with 30 days past due.

●

Qualitative criteria from analysts is also considered based on expert and supportable information.

The criteria for determining whether credit risk has increased significantly will vary by portfolio and will include a backstop based on delinquency.

Grupo Aval will monitor the effectiveness of the criteria used in identifying significant increases in credit risk through regular reviews to confirm that:

●

The criteria are useful in identifying significant increases in credit risk before an exposure is in default;

●

The criteria align with the point in time when an asset becomes over 30 days past due;

●

The average time between the identification of a significant increase in credit risk and default appears reasonable;

●

Exposures are not generally transferred directly from 12-month ECL measurement to credit-impaired; and

●

There is unwarranted volatility in loss allowance from transfers between 12-month ECL and lifetime ECL measurements.

II. PD – Probability of Default

Term structure of PD

Credit risk grades are the primary input in the determination of the term structure of PD for exposures. Grupo Aval collects performance and default information about its credit risk exposures by type of product and borrower, and by credit risk grade. For some portfolios, information purchased from external credit bureaus may also be used.

This analysis includes the identification and calibration of the relation between changes in default rates and changes in key macro-economic factors, as well as an in-depth analysis of the impact of certain other factors (e.g. cancellations) on the risk of default. For exposures to specific industries and/or regions, the analysis may extend to relevant commodity and/ or real estate prices.

For stage 1 the PD estimates the probability that the credit will default in the next 12 months, while the PD in stage 2 is the result of the probabilities for the remaining life of the credit. The probability in Stage 3 is defined as 100%.

Grupo Aval’s approach to incorporating forward-looking information into this assessment is discussed below.

Forward-Looking Information

Grupo Aval incorporates forward-looking information into both its assessment of whether the credit risk of an instrument has increased significantly since initial recognition and its measurement of ECLs. Grupo Aval formulates a ‘base case’ view of the future direction of relevant economic variables and a representative range of other possible forecast scenarios based on forecasts provided by economic experts and considering a forecast of multiple variables. This process involves developing two or more additional economic scenarios and considering the relative probabilities of each outcome.

The B scenario (base case) represents a most-likely outcome. It is aligned with information used by Grupo Aval for other purposes, such as budgeting. The other scenarios represent more optimistic (C) and more pessimistic (A) outcomes with their respective probability of occurrence.

Grupo Aval has identified and documented key drivers of credit risk and credit losses for each portfolio of financial instruments and, using an analysis of historical data, has estimated relationships between macro-economic variables and risks and credit losses.

Changes in economic conditions will be monitored by Grupo Aval´s Entities and subsidiaries to be incorporated into the macroeconomic parameters used to prepare stress scenarios and financial projections. Forward looking information was adjusted, recognizing macroeconomic impacts based on the available information about past events, current conditions and forecasts of economic conditions.

The following table presents one-year projections for Colombia made in December 2024, compared to the official data for December 2025.


	2025	Expected for 2025 in 2024
	Real Scenario	Scenario A	Scenario B	Scenario C
Inflation	5.10%	3.90%	3.90%	3.67%
DTF Interest rate	8.95%	4.97%	6.03%	5.82%
GDP Growth	2.60%	0.55%	2.68%	3.75%
Unemployment rate	8.00%	11.46%	10.46%	9.99%

The economic scenarios used as of December 31, 2025, and 2024 (one-year projections) include the following expected scenarios of key indicators (among others) for Colombia.


	One year projection in 2025			One year projection in 2024
	Scenario A	Scenario B	Scenario C	Scenario A	Scenario B	Scenario C
Inflation	4.43%	4.62%	4.63%	3.90%	3.90%	3.67%
DTF Interest rate	8.17%	9.26%	8.51%	4.97%	6.03%	5.82%
GDP Growth	1.46%	2.75%	3.23%	0.55%	2.68%	3.75%
Unemployment rate	9.83%	8.72%	7.83%	11.46%	10.46%	9.99%

The following additional variable was relevant to the models used by our banks in 2024.


	One year projection in 2025			One year projection in 2024
	Scenario A	Scenario B	Scenario C	Scenario A	Scenario B	Scenario C
Interest rate	8.50%	9.25%	8.50%	5.25%	6.25%	6.25%

The following table presents one-year projections for Panama made in December 2024, compared to the official data for December 2025, for nominal interest rate variation with the data for November 2025:


	2025	Expected for 2025 in 2024
	Real Scenario	Scenario A	Scenario B	Scenario C
Inflation	(0.21%)	2.33%	2.15%	1.51%
Nominal interest rate variation	0.23%	0.14%	0.10%	(0.02%)
IMAE ⁽¹⁾	4.03%	2.79%	3.03%	3.42%

The economic scenarios used as of December 31, 2025, and 2024 (one-year projections) include the following expected scenarios of key indicators (among others) for Panama.


	One year projection in 2025 ⁽²⁾			One year projection in 2024
	Scenario A	Scenario B	Scenario C	Scenario A	Scenario B	Scenario C
Inflation	2.51%	1.57%	1.21%	2.33%	2.15%	1.51%
Nominal interest rate variation	0.49%	(0.30%)	(0.42%)	0.14%	0.10%	(0.02%)
IMAE ⁽¹⁾	3.69%	4.12%	4.46%	2.79%	3.03%	3.42%

⁽¹⁾ Monthly Indicator of Economic Activity.

⁽²⁾ The Panama key indicators refer to Multi Financial Group. See note 13.B., "Discontinued operation related to Multi Financial Group”.

The scenario probability weightings applied as of December 31, 2025, and 2024 in measuring ECL are as follows:

Colombia


		2025						2024
		Scenario A		Scenario B		Scenario C		Scenario A		Scenario B		Scenario C
Scenario probability weighting		27%		56%		17%		27%		56%		17%

Panama

2025

2024

Scenario A

 

Scenario B

 

Scenario C

 

Scenario A

 

Scenario B

 

Scenario C

 

Scenario probability
weighting ⁽¹⁾

10%

60%

30%

15%

75%

10%

⁽¹⁾ The Panama key indicators refer to Multi Financial Group. See note 13.B., "Discontinued operation related to Multi Financial Group”.

The table below shows the loss allowance on loans assuming each forward-looking scenario (e.g. scenario A, B and C) were weighted 100% instead of applying scenario probability weights across the three scenarios.


		December 31, 2025 ⁽¹⁾						December 31, 2024
	Scenario A		Scenario B		Scenario C			Scenario A		Scenario B		Scenario C
Gross Exposure
Commercial	Ps.	108,308,984	Ps.	108,308,984	Ps.	108,308,984		Ps.	115,414,643	Ps.	115,414,643	Ps.	115,414,643
Consumer		60,456,213		60,456,213		60,456,213			61,976,325		61,976,325		61,976,325
Mortgages		22,111,710		22,111,710		22,111,710			22,035,727		22,035,727		22,035,727
Microcredit		1,520		1,520		1,520			4,375		4,375		4,375
Interbank and overnight funds		1,777,516		1,777,516		1,777,516			705,055		705,055		705,055
Total gross exposure	Ps.	192,655,943	Ps.	192,655,943	Ps.	192,655,943		Ps.	200,136,125	Ps.	200,136,125	Ps.	200,136,125

Loss Allowance for each scenario
Commercial	Ps.	4,218,378	Ps.	4,241,331	Ps.	4,286,802		Ps.	5,309,528	Ps.	5,336,949	Ps.	5,430,691
Consumer		3,619,488		3,651,503		3,720,068			4,118,656		4,168,736		4,239,720
Mortgages		499,989		500,866		506,196			468,275		471,634		480,073


		December 31, 2025 ⁽¹⁾						December 31, 2024
	Scenario A		Scenario B		Scenario C			Scenario A		Scenario B		Scenario C
Microcredit		958		959		961			3,611		3,610		3,613
Interbank and overnight funds		8,030		8,293		8,854			2,505		2,619		3,029
Total Loss Allowance	Ps.	8,346,843	Ps.	8,402,952	Ps.	8,522,881		Ps.	9,902,575	Ps.	9,983,548	Ps.	10,157,126

The table below shows the loan portfolio in Stage 2 for each scenario.

Proportion of Assets in Stage 2
Commercial		3.9	%	4.1	%	4.2		%	3.2	%	3.2	%	3.8	%
Consumer		6.4	%	6.3	%	6.3		%	7.6	%	8.2	%	8.7	%
Mortgages		3.8	%	3.8	%	3.8		%	6.0	%	8.4	%	8.4	%
Microcredit		0.5	%	0.5	%	0.5		%	0.9	%	0.9	%	0.9	%
Interbank and overnight funds		—	%	—	%	—		%	—	%	—	%	—	%

Credit Risk Rating

Grupo Aval allocates each exposure to a credit risk grade based on a variety of data intended to be predictive of the probability of default and applying experienced credit judgment. Grupo Aval uses these grades with the purpose identifying significant increases in credit risk. Credit risk grades are defined using qualitative and quantitative factors that are indicative of the risk of default. These factors may vary depending on the nature of the exposure and the type of borrower.

Each exposure is allocated to a credit risk grade at initial recognition based on available information about the borrower. Exposures are subject to ongoing monitoring, which may result in an exposure being moved to a different credit risk grade. The monitoring typically involves using of the following data.


Commercial	Consumer	Mortgage	Microcredit
-Information from the audited financial statements obtained during periodic reviews.	-Information collected internally about the behavior of customers.	-Information collected internally about the behavior of customers.	-Information collected internally about the behavior of customers.
-Data from credit reference agencies.	- Data from credit reference agencies.	- Data from credit reference agencies.	- Data from credit reference agencies.
-Information collected internally about the behavior of customers.	-Information of the different sectors.
-Information from the different economics sectors.

III. LGD – Loss Given Default

LGD is a measure of the likely loss in the event of a default. To estimate LGD, Grupo Aval uses information of the collateral security / guarantee which covers each individual credit, when available. In any case, Grupo Aval uses historical and forward-looking information (the same information described above in II. PD – Probability of Default - Forward-Looking Information) to estimate the expected potential recovery in case of a default. The LGD is estimated in groups by type of credit, collateral security / guarantee or maturity.

IV. EAD – Exposure at Default

EAD represents the expected exposure from a counterparty at the time of a possible default. For stage 2 Grupo Aval incorporates in the analysis of the exposure at default the probability of payments and increase in exposure during the lifetime of the credit.

These probabilities are estimated using the historical information collected by the financial subsidiaries and are grouped by type of product. The probabilities are constantly reviewed in order to accurately estimate them and calibrate them.

Credit Risk Model: Debt securities and other liquid financial assets

This model estimates the impairment of credit risk in debt securities. In general, at the moment of inception, all financial assets originate ECLs for the next 12 months. If credit risk increases significantly and there is enough objective evidence of increase of probability of default, then the reserve is adjusted for the remaining life of the financial asset.

I. Transition between stages

A financial asset is classified as a low credit risk asset if the issuer is related to an investment grade credit rating.

Financial assets different than low credit risk must be evaluated individually. The first step in the methodology consist in evaluating a significant increase in credit risk by comparing the current status against the status at initial recognition of the security.

External elements related to a significant increase in credit risk are detailed below:

●

Negative changes in external credit ratings.

●

Changes in external market variables such as credit spreads, prices of issuer’s (CDS) and other prices of debt instruments and equities.

●

Changes in business, economic, financial, regulatory or technological environment which can affect the payment capacity of the issuer.

●

Changes in operational results that can compromise the payment capacity of the issuer.

If the financial asset loses its low credit risk condition or if changes in external environment results in a review of the condition, then this probably shows a significant increase in credit risk. Consequently, the financial asset will be analyzed to determine if there is a significant increase of credit risk (stage 2) or if the asset should be classified as stage 3.

Objective evidence of impairment is the second step in making changes between stages. It is concluded that there is objective evidence of impairment if one the following situations is met:

●

The external credit rating of the issuance, issuer or counterparty is reduced to D on the Standard & Poor´s and Fitch Ratings scale or up to C on the Moody´s scale.

●

Contractual payments are not made on the established dates, terms or grace periods.

●

There is a certainty of suspension of payments.

●

There is a probability that the issuer or counterparty will go into a bankruptcy process.

●

Due to financial difficulties there is no market for financial assets.

II. PD – Probability of default

PD depends on the external credit rating of the issuance, issuer or counterparty. Credit rating information is published by international credit rating corporations, such as Standard & Poor’s, Moody’s and Fitch Ratings, or national credit rating corporations, such as Fitch Ratings Colombia S.A. or BRC. In any case, international ratings have priority over national ratings.

Credit ratings from S&P have priority over the other rating corporations. If the issuance, issuer or counterparty is not rated by S&P, credit ratings from Moody’s or Fitch Ratings can be used but they must be translated to the S&P rating scale. The order of priority in credit rating corporations is as follows: S&P in first place, Moody’s in second place and Fitch Ratings in the third one. The reason for choosing this hierarchy is to avoid discretion at the time of assigning a rating. National credit ratings can be used only if international credit ratings are not available, and the translation condition to the S&P rating scale must be followed as well.

For financial assets classified as stage 1, PD correspond to the probability of default for the next 12 months established in accordance to “Cumulative Default Rates by Rating Modifiers” for both sovereign and corporate issuers, expressed at an annual basis. If the remaining life of the assets is less than 12 months, the resulting PD will correspond to the weighted 12 months-PD with the remaining life of the financial asset.

For financial assets classified as stage 2, lifetime PD must be used and computed using the “Cumulative Default Rates by Rating Modifiers” for both sovereign and corporate issuers, expressed at an annual basis and according to the term of each flow.

For financial assets classified as stage 3, lifetime PD will equal 100% for any issuance, issuer or counterparty.

The PD value tables are made available and published annually by S&P Global Ratings in the reports “2024 Annual Global Sovereign Default and Rating Transition Study” and “2024 Annual Global Corporate Default and Rating Transition Study”, as of December 31, 2025, as well as in the reports “2023 Annual Global Sovereign Default and Rating Transition Study” and “2023 Annual Global Corporate Default and Rating Transition Study” as of December 31,2024.

Forward-Looking Information

Grupo Aval incorporates forward-looking information into its assessment of whether the credit risk of an instrument has increased significantly since initial recognition and its measurement of ECL. This information will directly affect the PD and the stage classification.

When rating the sovereign and corporate issuers, credit ratings agencies incorporate prospective information, as well as forecasting of macroeconomic variables and the influence of these factors over the business conditions. Grupo Aval’s methodology includes external credit ratings which, under the previous argument, have already considered prospective information.

Furthermore, credit ratings are also subject to rating outlooks which can modify the current credit ratings. Details are provided below. Rating outlooks are published by credit rating corporations and reflect the perspective of the potential long-term credit rating over the next 6 to 24 months.

●

If the Rating Outlook is categorized as “STABLE”, no adjustments in credit ratings are needed.

●

If the Rating Outlook is “POSITIVE”, PD will be adjusted as the average between the current PD and the applicable PD in the case credit rating improves one notch. However, this would only take place if the resulting PD is lower than the current PD.

●

If the Rating Outlook is “NEGATIVE”, PD will be adjusted as the average between the current PD and the applicable PD in the case credit rating deteriorates one notch. However, this would only take place if the resulting PD is higher than the current PD.

III. LGD – Loss given default

LGD is a measure of the potential loss if a default scenario occurs. To establish the LGD, Grupo Aval’s methodology uses information published by Moody’s credit rating corporation. LGD is based on relevant external default data, such as the historical recovery rates, which is defined as the complement of LGD calculation.

Moody’s computes Recovery Rates as the ratio between market prices after 30 days of the default or the debt swap price at the closing date, and the market price of the issuance at the beginning of the default. In the case of unavailable market prices, recovery rates will be the resulting ratio between present value of expected cash flows of the new instruments received with the debt swap and the present value of the initial instruments.

Grupo Aval´s methodology assigns weights for recovery rates for Sovereigns Debt and Corporates Debt. Sovereign Debt recovery rates remained at 53% in 2025, also Corporate Debt recovery rates increased moderately from 46.9% in 2024 to 47% in 2025.

Additional information is available and published annually by Moody’s in the reports “Sovereign Default and Recovery Rates, 1983–2024” and “Annual Default Study: Corporate Default Rate to Fall Below Its Long-Term Average in 2025” as of December 31, 2025, and in the reports “Annual Default Study: Corporate Default Rate to Moderate in 2024 but Remain Near Its Long-Term Average” and “Sovereign Default and Recovery Rates, 1983–2023” as of December 31, 2024.

IV. EAD – Exposure at default

EAD represents the amount owed from a counterparty at the time of a possible default and only for securities classified at amortized cost or FVOCI. See accounting policy in Note 2 (2.5 ix).

For stage 1 and stage 3 financial assets, EAD will correspond to the full valuation of the assets at amortized cost.

For stage 2 financial assets, EAD will consider the financial asset amortized scheme assuming no default in the previous years.

In the case that financial assets present a guarantees or security collateral, these could reduce total EAD. This is a typical case of collateralized interbank loans.

Credit Risk Model: Other accounts receivable

Grupo Aval uses two approaches to estimate ECL of financial assets classified as other accounts receivables.

The first one is the simplified approach where Grupo Aval uses an allowance matrix to measure the ECLs of trade receivables from individual customers, which comprise a very large number of small amounts.

Loss rates are calculated using a ‘roll rate’ method based on the probability of a receivable progressing through successive stages of delinquency to write-off. Roll rates are calculated separately for exposures in different segments based on the following common credit risk characteristics like type of product purchased.

Loss rates are based on the experience of real credit loss during a year and the balance of accounts receivable at the cut-off date for previously defined homogeneous segments. It takes into consideration elements such as: segmentation by type of receivable account, date of analysis, definition of loss, among others. Based on the characteristics of the short-term receivable accounts, these portfolios result from operations where there are no non-linear impacts, therefore, the application of macroeconomic scenarios is not considered.

The second one is the general approach, it considers the methodologies explained above for loans and debt securities. For non-financial companies in the oil and gas sector, the loans methodology is considered, while the debt securities methodology is considered for government and other government related entities.

Loss allowance

The table below shows the loss allowance balances as of December 31, 2025, and 2024:


		December 31, 2025 ⁽¹⁾
		Stage 1			Stage 2			Stage 3
					Lifetime			Lifetime
					ECL not			ECL
		12-month			credit-			credit-			Simplified
		ECL			impaired			impaired			approach			Total
Loan portfolio
Loan commercial portfolio		Ps.	683,890		Ps.	220,828		Ps.	3,357,213		Ps.	—		Ps.	4,261,931
Loan consumer portfolio			1,104,503			703,634			1,856,639			—			3,664,776
Loan mortgage portfolio			78,738			64,868			358,549			—			502,155
Loan microcredit portfolio			15			—			945			—			960
Loan interbank and overnight funds portfolio			148			—			—			—			148
Total loan portfolio		Ps.	1,867,294		Ps.	989,330		Ps.	5,573,346		Ps.	—		Ps.	8,429,970
Investments in debt securities at amortized cost			8,278			—			—			—			8,278
Other accounts receivable			31,161			25,223			102,494			233,814			392,692
Total loss allowance financial assets at amortized cost		Ps.	1,906,733		Ps.	1,014,553		Ps.	5,675,840		Ps.	233,814		Ps.	8,830,940

Investments in debt securities at FVOCI		Ps.	26,558		Ps.	44		Ps.	—		Ps.	—		Ps.	26,602
Loan commitments and financial guarantee contracts			69,308			6,906			1,611			—			77,825
Total loss allowance		Ps.	2,002,599		Ps.	1,021,503		Ps.	5,677,451		Ps.	233,814		Ps.	8,935,367


		December 31, 2024
		Stage 1			Stage 2			Stage 3
					Lifetime			Lifetime
					ECL not			ECL
		12-month			credit-			credit-			Simplified
		ECL			impaired			impaired			approach			Total
Loan portfolio
Loan commercial portfolio		Ps.	724,075		Ps.	217,588		Ps.	4,421,230		Ps.	—		Ps.	5,362,893
Loan consumer portfolio			1,105,918			927,310			2,132,790			—			4,166,018
Loan mortgage portfolio			60,088			71,839			341,388			—			473,315
Loan microcredit portfolio			59			14			3,545			—			3,618


		December 31, 2024
		Stage 1			Stage 2			Stage 3
					Lifetime			Lifetime
					ECL not			ECL
		12-month			credit-			credit-			Simplified
		ECL			impaired			impaired			approach			Total
Loan interbank and overnight funds portfolio			794			1			—			—			795
Total loan portfolio		Ps.	1,890,934		Ps.	1,216,752		Ps.	6,898,953		Ps.	—		Ps.	10,006,639
Investments in debt securities at amortized cost			14,329			4,346			—			—			18,675
Other accounts receivable			31,226			22,196			117,508			191,041			361,971
Total loss allowance financial assets at amortized cost		Ps.	1,936,489		Ps.	1,243,294		Ps.	7,016,461		Ps.	191,041		Ps.	10,387,285

Investments in debt securities at FVOCI		Ps.	18,310		Ps.	—		Ps.	—		Ps.	—		Ps.	18,310
Loan commitments and financial guarantee contracts			62,509			7,671			2,234			—			72,414
Total loss allowance		Ps.	2,017,308		Ps.	1,250,965		Ps.	7,018,695		Ps.	191,041		Ps.	10,478,009

The following table presents the impairment losses/recoveries per portfolio for the years ended December 31, 2025, 2024 and 2023:


		As of December 31, 2025		As of December 31, 2024 ⁽¹⁾		As of December 31, 2023 ⁽¹⁾
Commercial	Ps.	953,167	Ps.	690,828	Ps.	137,906
Consumer		3,034,991		3,780,124		4,342,925
Mortgage		175,898		133,885		59,250
Microcredit		(89)		(10,902)		31,901
Interbank and overnight funds		(647)		773		(1,422)
Total loan portfolio	Ps.	4,163,320	Ps.	4,594,708	Ps.	4,570,560
Other receivables⁽²⁾		161,404		92,044		76,487
Net portfolio provision impact on income statement	Ps.	4,324,724	Ps.	4,686,752	Ps.	4,647,047

⁽¹⁾ The information was modified based on MFG's discontinued operation; see note 13.B.

⁽²⁾ Includes net of loss allowance presented as part of “Costs and expenses of sales goods and services” as of December 2025 Ps. (56,497) as of December 2024 Ps. (71,157) and as of December 2023 Ps. (51,035).

The table below shows for loans stage 3 individually assessed for ECL the gross amount and loss allowance balances as of December 31, 2025, and 2024.


	December 31, 2025 ⁽¹⁾
	Gross Amount Registered		Collateral Guarantees		Allowance Recognized
Without recognized provision
Commercial	Ps.	68	Ps.	—	Ps.	—
Subtotal	Ps.	68	Ps.	—	Ps.	—

With recognized provision
Commercial	Ps.	6,090,515	Ps.	300,598	Ps.	2,100,718
Consumer		13,117		1,841		4,755
Mortgage		11,435		—		2,889
Subtotal	Ps.	6,115,067	Ps.	302,439	Ps.	2,108,362
Totals
Commercial	Ps.	6,090,583	Ps.	300,598	Ps.	2,100,718
Consumer		13,117		1,841		4,755
Mortgage		11,435		—		2,889
Total	Ps.	6,115,135	Ps.	302,439	Ps.	2,108,362


	December 31, 2024
	Gross Amount Registered		Collateral Guarantees		Allowance Recognized
Without recognized provision
Commercial	Ps.	262,667	Ps.	262,373	Ps.	—
Subtotal	Ps.	262,667	Ps.	262,373	Ps.	—

With recognized provision
Commercial	Ps.	7,775,982	Ps.	1,348,148	Ps.	2,950,023
Consumer		6,512		4,332		3,868
Mortgage		19,828		1,970		11,541
Subtotal	Ps.	7,802,322	Ps.	1,354,450	Ps.	2,965,432
Totals
Commercial	Ps.	8,038,649	Ps.	1,610,521	Ps.	2,950,023
Consumer		6,512		4,332		3,868
Mortgage		19,828		1,970		11,541
Total	Ps.	8,064,989	Ps.	1,616,823	Ps.	2,965,432

The difference between the value of the loan and the guarantees disclosed in the table above corresponds to unsecured loans valued under the discounted cash flow method. When using this method, it is implied that it is possible for the customer to make future payments.

The loss allowance recognized in the period is impacted by a variety of factors, as described below:

●

Transfers between Stage 1 and Stages 2 or 3 due to financial instruments experiencing significant increases (or decreases) in credit risk or becoming credit-impaired in the period, and the consequent "step up" (or "step down") between 12-month and lifetime ECL;

●

Additional allowances for new financial instruments recognized during the period, as well as releases for financial instruments de-recognized in the period;

●

Impact of the measurement of ECL due to changes made to models and assumptions;

●

Decrease within ECL due to the passage of time, as ECL is measured on a present value basis;

●

Foreign exchange retranslations for asset denominated in foreign currencies and other movements; and

●

Financial assets derecognized during the period and write-offs of allowances related to assets than were written off during the period.

The following tables show the reconciliations from the opening to the closing balance of the loss allowance by class of financial instrument.

Total Loan portfolio


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Loss allowance as of January 1, 2023		Ps.	1,494,887		Ps.	1,425,922		Ps.	6,276,705		Ps.	9,197,514
Transfers:
Transfer from stage 1 to stage 2			(332,307)			332,307			—			—
Transfer from stage 1 to stage 3			(450,063)			—			450,063			—
Transfer from stage 2 to stage 3			—			(1,180,705)			1,180,705			—
Transfer from stage 3 to stage 2			—			309,622			(309,622)			—
Transfer from stage 2 to stage 1			479,360			(479,360)			—			—
Transfer from stage 3 to stage 1			113,974			—			(113,974)			—
Net remeasurement of loss allowance ⁽⁶⁾			328,184			1,261,116			2,678,727			4,268,027
New financial assets originated or purchased			746,460			285,746			617,291			1,649,497
Financial assets that have been derecognized			(407,483)			(129,426)			(810,055)			(1,346,964)
Sales of portfolio ⁽⁷⁾			(2,369)			(1,809)			(357,202)			(361,380)
Unwind of discount⁽³⁾			12			62			724,674			724,748
FX and other movements			(13,879)			(16,567)			(43,683)			(74,129)
Discontinued operations ⁽¹⁾			(31,149)			18,163			167,887			154,901
Write-offs			(114,019)			(540,280)			(3,522,200)			(4,176,499)


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Loss allowance as of December 31, 2023		Ps.	1,811,608		Ps.	1,284,791		Ps.	6,939,316		Ps.	10,035,715
Transfers:
Transfer from stage 1 to stage 2			(332,518)			332,518			—			—
Transfer from stage 1 to stage 3			(422,672)			—			422,672			—
Transfer from stage 2 to stage 3			—			(1,229,034)			1,229,034			—
Transfer from stage 3 to stage 2			—			174,006			(174,006)			—
Transfer from stage 2 to stage 1			339,075			(339,075)			—			—
Transfer from stage 3 to stage 1			112,495			—			(112,495)			—
Net remeasurement of loss allowance ⁽⁵⁾			408,965			1,324,473			2,884,586			4,618,024
New financial assets originated or purchased			553,975			171,018			560,083			1,285,076
Financial assets that have been derecognized			(494,729)			(122,114)			(691,549)			(1,308,392)
Sales of portfolio ⁽⁷⁾			(3,063)			(793)			(130,799)			(134,655)
Unwind of discount⁽³⁾			1			77			816,010			816,088
FX and other movements			9,650			7,608			25,775			43,033
Discontinued operations ⁽¹⁾			(23,538)			25,642			136,410			138,514
Write-offs			(68,315)			(412,365)			(5,006,084)			(5,486,764)
Loss allowance as of December 31, 2024		Ps.	1,890,934		Ps.	1,216,752		Ps.	6,898,953		Ps.	10,006,639
Transfers:
Transfer from stage 1 to stage 2			(275,855)			275,855			—			—
Transfer from stage 1 to stage 3			(316,862)			—			316,862			—
Transfer from stage 2 to stage 3			—			(1,026,370)			1,026,370			—
Transfer from stage 3 to stage 2			—			130,594			(130,594)			—
Transfer from stage 2 to stage 1			282,164			(282,164)			—			—
Transfer from stage 3 to stage 1			126,870			—			(126,870)			—
Net remeasurement of loss allowance ⁽⁴⁾			13,558			992,532			2,655,809			3,661,899
New financial assets originated or purchased			886,998			184,597			561,200			1,632,795
Financial assets that have been derecognized			(547,374)			(121,062)			(462,938)			(1,131,374)
Sales of portfolio ⁽⁷⁾			(10)			(357)			(301,939)			(302,306)
Unwind of discount⁽³⁾			—			—			388,182			388,182
FX and other movements			(11,629)			(11,924)			(26,521)			(50,074)
Discontinued operations ⁽¹⁾			(23,788)			60,721			122,298			159,231
Reclassification MFG operation ⁽²⁾			(70,728)			(64,506)			(126,777)			(262,011)
Write-offs			(86,984)			(365,338)			(5,220,689)			(5,673,011)
Loss allowance as of December 31, 2025		Ps.	1,867,294		Ps.	989,330		Ps.	5,573,346		Ps.	8,429,970

⁽¹⁾ See note 13.B., “Discontinued operation related to Multi Financial Group”.

⁽²⁾ Corresponds to the reclassification to Non-Current Assets Held for Sale of Multi Financial Group operation as of December 31, 2025, see note 13.A.

⁽³⁾	The unwind of discount on Stage 3 financial assets is reported within "interest income" so that interest income is recognized on the amortized cost (after deducting the ECL allowance)

⁽⁴⁾

This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies from the opening to the closing balance. The following table shows the impact by stage estimated using all parameters as of December 31, 2025 versus parameters as of 2024 and the loan portfolio as of 2025.


December 31, 2025
			Stage 2			Stage 3
Stage 1			Lifetime ECL not			Lifetime ECL
12-month ECL			credit-impaired			credit-impaired			Total
Ps.	171,714		Ps.	110,005		Ps.	8,053		Ps.	289,772

⁽⁵⁾ This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies from the opening to the closing balance. The following table shows the impact by stage estimated using all parameters as of December 31, 2024 versus parameters as of December 31,2023 and the loan portfolio as of December 31, 2024.


December 31, 2024
			Stage 2			Stage 3
Stage 1			Lifetime ECL not			Lifetime ECL
12-month ECL			credit-impaired			credit-impaired			Total
Ps.	(221,533)		Ps.	(1,913)		Ps.	42,208		Ps.	(181,238)

⁽⁶⁾ This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies from the opening to the closing balance. The following table shows the impact by stage estimated using all parameters as of December 31, 2023 versus parameters as of December 31,2022 and the loan portfolio as of December 31, 2023.


December 31, 2023
			Stage 2			Stage 3
Stage 1			Lifetime ECL not			Lifetime ECL
12-month ECL			credit-impaired			credit-impaired			Total
Ps.	66,298		Ps.	35,139		Ps.	(6,894)		Ps.	94,543

⁽⁷⁾Sale of loan portfolio corresponds mainly to sale of microcredit portfolio, and impaired portfolio and/ or with an increase in credit risk.

The following table further explains changes in the gross carrying amount of the loan portfolio to help explain their significance to the changes in the allowance for the same portfolio as discussed above.


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Total portfolio as of January 1, 2023		Ps.	164,906,023		Ps.	11,774,908		Ps.	11,632,430		Ps.	188,313,361
Transfers:
Transfer from stage 1 to stage 2			(10,951,993)			10,951,993			—			—
Transfer from stage 1 to stage 3			(2,059,976)			—			2,059,976			—
Transfer from stage 2 to stage 3			—			(3,372,104)			3,372,104			—
Transfer from stage 2 to stage 1			9,137,025			(9,137,025)			—			—
Transfer from stage 3 to stage 2			—			876,973			(876,973)			—
Transfer from stage 3 to stage 1			509,414			—			(509,414)			—
New financial assets originated or purchased			111,919,244			2,583,927			8,250,075			122,753,246
Financial assets that have been paid			(103,065,373)			(3,798,676)			(7,734,476)			(114,598,525)
Net remeasurement of amortized cost and other receivables			1,032,328			(507,018)			97,065			622,375
Sale of loan portfolio-loss allowance ⁽⁴⁾			(2,369)			(1,809)			(357,202)			(361,380)
Sale of loan portfolio-cash ⁽⁴⁾			—			(694)			(112,766)			(113,460)
Gain or loss on sale portfolio ⁽⁴⁾			—			(59)			3,390			3,331
FX and other movements ⁽³⁾			(6,594,417)			(388,080)			(424,255)			(7,406,752)
Discontinued operations ⁽¹⁾			(191,326)			671,991			687,408			1,168,073
Write-offs			(114,019)			(540,280)			(3,522,200)			(4,176,499)
Total portfolio as of December 31, 2023		Ps.	164,524,561		Ps.	9,114,047		Ps.	12,565,162		Ps.	186,203,770
Transfers:
Transfer from stage 1 to stage 2			(9,506,321)			9,506,321			—			—
Transfer from stage 1 to stage 3			(2,324,339)			—			2,324,339			—
Transfer from stage 2 to stage 3			—			(3,841,435)			3,841,435			—
Transfer from stage 2 to stage 1			4,633,197			(4,633,197)			—			—
Transfer from stage 3 to stage 2			—			717,343			(717,343)			—
Transfer from stage 3 to stage 1			488,967			—			(488,967)			—
New financial assets originated or purchased			114,075,744			2,713,752			6,287,303			123,076,799
Financial assets that have been paid			(98,949,746)			(3,690,211)			(6,354,777)			(108,994,734)
Net remeasurement of amortized cost and other receivables			476,767			(811,893)			229,242			(105,884)
Sale of loan portfolio-loss allowance ⁽⁴⁾			(3,063)			(793)			(130,799)			(134,655)
Sale of loan portfolio-cash ⁽⁴⁾			(218,936)			(12,540)			(51,151)			(282,627)
Gain or loss on sale portfolio ⁽⁴⁾			(20)			(558)			664			86
FX and other movements ⁽³⁾			4,287,130			210,057			248,171			4,745,358
Discontinued operations ⁽¹⁾			(219,095)			660,046			673,825			1,114,776
Write-offs			(68,315)			(412,365)			(5,006,084)			(5,486,764)
Total portfolio as of December 31, 2024		Ps.	177,196,531		Ps.	9,518,574		Ps.	13,421,020		Ps.	200,136,125
Transfers:
Transfer from stage 1 to stage 2			(9,972,848)			9,972,848			—			—
Transfer from stage 1 to stage 3			(1,904,212)			—			1,904,212			—
Transfer from stage 2 to stage 3			—			(3,460,367)			3,460,367			—
Transfer from stage 2 to stage 1			4,099,867			(4,099,867)			—			—
Transfer from stage 3 to stage 2			—			598,857			(598,857)			—


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Transfer from stage 3 to stage 1			472,961			—			(472,961)			—
New financial assets originated or purchased			133,064,325			11,519,514			5,209,376			149,793,215
Financial assets that have been paid			(112,932,038)			(12,751,684)			(6,173,815)			(131,857,537)
Net remeasurement of amortized cost and other receivables			(973,288)			(463,725)			992,302			(444,711)
Sale of loan portfolio-loss allowance ⁽⁴⁾			(10)			(357)			(301,939)			(302,306)
Sale of loan portfolio-cash ⁽⁴⁾			(2)			(33)			(124,977)			(125,012)
Gain or loss on sale portfolio ⁽⁴⁾			(1)			(41)			12,181			12,139
FX and other movements ⁽³⁾			(4,700,309)			(248,985)			(228,152)			(5,177,446)
Discontinued operations ⁽¹⁾			922,799			112,276			75,139			1,110,214
Reclassification MFG operation ⁽²⁾			(12,067,196)			(1,670,297)			(1,078,234)			(14,815,727)
Write-offs			(86,984)			(365,338)			(5,220,689)			(5,673,011)
Total portfolio as of December 31, 2025		Ps.	173,119,595		Ps.	8,661,375		Ps.	10,874,973		Ps.	192,655,943

⁽¹⁾See note 13.B., “Discontinued operation related to Multi Financial Group”.

⁽²⁾ Corresponds to the reclassification to Non-Current Assets Held for Sale of Multi Financial Group operation as of December 31, 2025, see note 13.A.

⁽³⁾ Corresponds to the variation in the TRM between January and December: Ps. (652.07) per U.S. dollar in 2025, Ps. 587.1 in 2024, and Ps. (988.15) in 2023.

⁽⁴⁾ Sale of loan portfolio corresponds mainly to sale of microcredit portfolio, and impaired portfolio and/ or with an increase in credit risk.

The total loan portfolio is composed of commercial loans, consumer loans, mortgage loans, microcredit loans and interbank and overnight funds loan. The following tables show the movement in provisions and gross amounts of these portfolios separately:

Commercial loan portfolio


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Loss allowance as of January 1, 2023		Ps.	598,538		Ps.	515,202		Ps.	4,379,006		Ps.	5,492,746
Transfers:
Transfer from stage 1 to stage 2			(44,743)			44,743			—			—
Transfer from stage 1 to stage 3			(18,381)			—			18,381			—
Transfer from stage 2 to stage 3			—			(130,514)			130,514			—
Transfer from stage 3 to stage 2			—			40,868			(40,868)			—
Transfer from stage 2 to stage 1			150,216			(150,216)			—			—
Transfer from stage 3 to stage 1			31,836			—			(31,836)			—
Net remeasurement of loss allowance ⁽⁶⁾			(143,952)			(109,495)			602,866			349,419
New financial assets originated or purchased			285,466			57,006			125,454			467,926
Financial assets that have been derecognized			(211,534)			(35,105)			(432,800)			(679,439)
Sales of portfolio			—			—			(194,305)			(194,305)
Unwind of discount ⁽³⁾			—			16			517,513			517,529
FX and other movements			(11,012)			(9,657)			(35,821)			(56,490)
Discontinued operations ⁽¹⁾			(20,690)			(1,893)			87,790			65,207
Write-offs			(3,303)			(2,131)			(662,559)			(667,993)
Loss allowance as of December 31, 2023		Ps.	612,441		Ps.	218,824		Ps.	4,463,335		Ps.	5,294,600
Transfers:
Transfer from stage 1 to stage 2			(55,649)			55,649			—			—
Transfer from stage 1 to stage 3			(18,703)			—			18,703			—
Transfer from stage 2 to stage 3			—			(141,584)			141,584			—
Transfer from stage 3 to stage 2			—			42,213			(42,213)			—
Transfer from stage 2 to stage 1			69,270			(69,270)			—			—
Transfer from stage 3 to stage 1			25,801			—			(25,801)			—
Net remeasurement of loss allowance ⁽⁵⁾			89,091			102,262			712,382			903,735
New financial assets originated or purchased			276,958			39,096			116,280			432,334
Financial assets that have been derecognized			(266,644)			(37,026)			(341,571)			(645,241)
Sales of portfolio			—			—			(94,960)			(94,960)
Unwind of discount ⁽³⁾			1			51			593,517			593,569
FX and other movements			5,749			3,974			21,427			31,150


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Discontinued operations ⁽¹⁾			(9,701)			7,179			70,058			67,536
Write-offs			(4,539)			(3,780)			(1,211,511)			(1,219,830)
Loss allowance as of December 31, 2024		Ps.	724,075		Ps.	217,588		Ps.	4,421,230		Ps.	5,362,893
Transfers:
Transfer from stage 1 to stage 2			(55,003)			55,003			—			—
Transfer from stage 1 to stage 3			(15,271)			—			15,271			—
Transfer from stage 2 to stage 3			—			(143,316)			143,316			—
Transfer from stage 3 to stage 2			—			29,470			(29,470)			—
Transfer from stage 2 to stage 1			54,778			(54,778)			—			—
Transfer from stage 3 to stage 1			18,925			—			(18,925)			—
Net remeasurement of loss allowance ⁽⁴⁾			(89,531)			110,018			776,530			797,017
New financial assets originated or purchased			397,081			58,317			296,127			751,525
Financial assets that have been derecognized			(293,004)			(41,751)			(260,620)			(595,375)
Sales of portfolio			(3)			(3)			(186,840)			(186,846)
Unwind of discount ⁽³⁾			—			—			261,596			261,596
FX and other movements			(6,900)			(5,869)			(22,105)			(34,874)
Discontinued operations ⁽¹⁾			(7,562)			36,640			19,124			48,202
Reclassification MFG operation ⁽²⁾			(34,399)			(35,413)			(90,776)			(160,588)
Write-offs			(9,296)			(5,078)			(1,967,245)			(1,981,619)
Loss allowance as of December 31, 2025		Ps.	683,890		Ps.	220,828		Ps.	3,357,213		Ps.	4,261,931

⁽¹⁾ See note 13.B., “Discontinued operation related to Multi Financial Group”.

⁽²⁾ Corresponds to the reclassification to Non-Current Assets Held for Sale of Multi Financial Group operation as of December 31, 2025, see note 13.A.

⁽³⁾	The unwind of discount on Stage 3 financial assets is reported within "interest income" so that interest income is recognized on the amortized cost (after deducting the ECL allowance)

⁽⁴⁾


December 31, 2025
			Stage 2			Stage 3
Stage 1			Lifetime ECL not			Lifetime ECL
12-month ECL			credit-impaired			credit-impaired			Total
Ps.	138,799		Ps.	48,659		Ps.	7,689		Ps.	195,147

⁽⁵⁾This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies from the opening to the closing balance. The following table shows the impact by stage estimated using all parameters as of December 31, 2024 versus parameters as of December 31,2023 and the loan portfolio as of December 31, 2024.


December 31, 2024
			Stage 2			Stage 3
Stage 1			Lifetime ECL not			Lifetime ECL
12-month ECL			credit-impaired			credit-impaired			Total
Ps.	(72,973)		Ps.	(25,391)		Ps.	4,822		Ps.	(93,542)

⁽⁶⁾This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies from the opening to the closing balance. The following table shows the impact by stage estimated using all parameters as of December 31, 2023 versus parameters as of December 31,2022 and the loan portfolio as of December 31, 2023.


December 31, 2023
			Stage 2			Stage 3
Stage 1			Lifetime ECL not			Lifetime ECL
12-month ECL			credit-impaired			credit-impaired			Total
Ps.	3,952		Ps.	(20,629)		Ps.	2,916		Ps.	(13,761)

The following table further explains changes in the gross carrying amount of the commercial portfolio to help explain their significance to the changes in the allowance for the same portfolio as discussed above.


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Total portfolio as of January 1, 2023		Ps.	89,958,234		Ps.	5,672,094		Ps.	9,144,771		Ps.	104,775,099
Transfers:
Transfer from stage 1 to stage 2			(3,831,869)			3,831,869			—			—
Transfer from stage 1 to stage 3			(979,725)			—			979,725			—
Transfer from stage 2 to stage 3			—			(986,422)			986,422			—
Transfer from stage 2 to stage 1			4,428,540			(4,428,540)			—			—
Transfer from stage 3 to stage 2			—			327,479			(327,479)			—
Transfer from stage 3 to stage 1			216,849			—			(216,849)			—
New financial assets originated or purchased			75,428,992			924,475			1,156,101			77,509,568
Financial assets that have been paid			(66,409,339)			(1,587,486)			(3,472,586)			(71,469,411)
Net remeasurement of amortized cost and other receivables			526,100			(679,777)			1,585,087			1,431,410
Sale of loan portfolio-loss allowance			—			—			(194,305)			(194,305)
Sale of loan portfolio-cash			—			—			(78,613)			(78,613)
Gain or loss on sale portfolio			—			—			(7,415)			(7,415)
FX and other movements			(5,261,913)			(239,697)			(403,935)			(5,905,545)
Discontinued operations ⁽¹⁾			255,734			698,670			700,618			1,655,022
Write-offs			(3,303)			(2,131)			(662,559)			(667,993)
Total portfolio as of December 31, 2023		Ps.	94,328,300		Ps.	3,530,534		Ps.	9,188,983		Ps.	107,047,817
Transfers:
Transfer from stage 1 to stage 2			(3,045,688)			3,045,688			—			—
Transfer from stage 1 to stage 3			(1,417,659)			—			1,417,659			—
Transfer from stage 2 to stage 3			—			(1,317,836)			1,317,836			—
Transfer from stage 2 to stage 1			1,717,607			(1,717,607)			—			—
Transfer from stage 3 to stage 2			—			327,186			(327,186)			—
Transfer from stage 3 to stage 1			193,628			—			(193,628)			—
New financial assets originated or purchased			78,072,651			1,151,665			2,338,796			81,563,112
Financial assets that have been paid			(71,077,046)			(1,565,432)			(3,236,784)			(75,879,262)
Net remeasurement of amortized cost and other receivables			(385,444)			(828,388)			(84,314)			(1,298,146)
Sale of loan portfolio-loss allowance			—			—			(94,960)			(94,960)
Sale of loan portfolio-cash			—			—			(22,804)			(22,804)
Gain or loss on sale portfolio			—			—			5,633			5,633
FX and other movements			3,309,663			136,089			237,033			3,682,785
Discontinued operations ⁽¹⁾			236,432			706,131			687,735			1,630,298
Write-offs			(4,539)			(3,780)			(1,211,511)			(1,219,830)
Total portfolio as of December 31, 2024		Ps.	101,927,905		Ps.	3,464,250		Ps.	10,022,488		Ps.	115,414,643
Transfers:
Transfer from stage 1 to stage 2			(3,898,207)			3,898,207			—			—
Transfer from stage 1 to stage 3			(1,069,896)			—			1,069,896			—
Transfer from stage 2 to stage 3			—			(1,161,965)			1,161,965			—
Transfer from stage 2 to stage 1			1,220,996			(1,220,996)			—			—
Transfer from stage 3 to stage 2			—			278,400			(278,400)			—
Transfer from stage 3 to stage 1			184,074			—			(184,074)			—
New financial assets originated or purchased			85,047,055			10,307,334			2,317,075			97,671,464
Financial assets that have been paid			(77,680,078)			(10,557,970)			(2,988,923)			(91,226,971)
Net remeasurement of amortized cost and other receivables			(51,136)			(194,087)			(57,597)			(302,820)
Sale of loan portfolio-loss allowance			(3)			(3)			(186,840)			(186,846)
Sale of loan portfolio-cash			(1)			(1)			(114,772)			(114,774)
Gain or loss on sale portfolio			—			—			24,901			24,901
FX and other movements			(3,487,842)			(128,876)			(217,402)			(3,834,120)
Discontinued operations ⁽¹⁾			468,912			49,220			57,533			575,665
Reclassification MFG operation ⁽²⁾			(6,040,222)			(811,177)			(879,140)			(7,730,539)
Write-offs			(9,296)			(5,078)			(1,967,245)			(1,981,619)
Total portfolio as of December 31, 2025		Ps.	96,612,261		Ps.	3,917,258		Ps.	7,779,465		Ps.	108,308,984

⁽¹⁾See note 13.B., “Discontinued operation related to Multi Financial Group”.

⁽²⁾ Corresponds to the reclassification to Non-Current Assets Held for Sale of Multi Financial Group operation as of December 31, 2025, see note 13.A.

Consumer loan portfolio


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Loss allowance as of January 1, 2023		Ps.	839,904		Ps.	853,159		Ps.	1,618,849		Ps.	3,311,912
Transfers:
Transfer from stage 1 to stage 2			(276,858)			276,858			—			—
Transfer from stage 1 to stage 3			(429,739)			—			429,739			—
Transfer from stage 2 to stage 3			—			(1,004,192)			1,004,192			—
Transfer from stage 3 to stage 2			—			257,854			(257,854)			—
Transfer from stage 2 to stage 1			300,775			(300,775)			—			—
Transfer from stage 3 to stage 1			71,599			—			(71,599)			—
Net remeasurement of loss allowance ⁽⁶⁾			477,231			1,301,174			2,091,820			3,870,225
New financial assets originated or purchased			445,354			226,345			445,140			1,116,839
Financial assets that have been derecognized			(184,933)			(90,591)			(368,615)			(644,139)
Sales of portfolio			(2,369)			(1,809)			(162,897)			(167,075)
Unwind of discount ⁽³⁾			—			46			183,157			183,203
FX and other movements			(3,199)			(4,785)			(5,379)			(13,363)
Discontinued operations ⁽¹⁾			6,177			13,305			63,606			83,088
Write-offs			(101,945)			(533,321)			(2,797,978)			(3,433,244)
Loss allowance as of December 31, 2023		Ps.	1,141,997		Ps.	993,268		Ps.	2,172,181		Ps.	4,307,446
Transfers:
Transfer from stage 1 to stage 2			(265,008)			265,008			—			—
Transfer from stage 1 to stage 3			(378,612)			—			378,612			—
Transfer from stage 2 to stage 3			—			(1,030,039)			1,030,039			—
Transfer from stage 3 to stage 2			—			117,468			(117,468)			—
Transfer from stage 2 to stage 1			238,008			(238,008)			—			—
Transfer from stage 3 to stage 1			77,112			—			(77,112)			—
Net remeasurement of loss allowance ⁽⁵⁾			293,405			1,147,503			2,113,393			3,554,301
New financial assets originated or purchased			264,533			130,124			439,828			834,485
Financial assets that have been derecognized			(216,409)			(78,281)			(313,972)			(608,662)
Sales of portfolio			(21)			(602)			(9,441)			(10,064)
Unwind of discount ⁽³⁾			—			26			199,790			199,816
FX and other movements			3,660			2,364			3,018			9,042
Discontinued operations ⁽¹⁾			(10,791)			14,058			56,074			59,341
Write-offs			(41,956)			(395,579)			(3,742,152)			(4,179,687)
Loss allowance as of December 31, 2024		Ps.	1,105,918		Ps.	927,310		Ps.	2,132,790		Ps.	4,166,018
Transfers:
Transfer from stage 1 to stage 2			(209,643)			209,643			—			—
Transfer from stage 1 to stage 3			(300,847)			—			300,847			—
Transfer from stage 2 to stage 3			—			(843,865)			843,865			—
Transfer from stage 3 to stage 2			—			86,684			(86,684)			—
Transfer from stage 2 to stage 1			193,461			(193,461)			—			—
Transfer from stage 3 to stage 1			97,074			—			(97,074)			—
Net remeasurement of loss allowance ⁽⁴⁾			88,526			816,337			1,785,608			2,690,471
New financial assets originated or purchased			465,115			123,255			260,679			849,049
Financial assets that have been derecognized			(244,305)			(76,434)			(183,790)			(504,529)
Sales of portfolio			(7)			(354)			(115,099)			(115,460)
Unwind of discount ⁽³⁾			—			—			107,651			107,651
FX and other movements			(4,743)			(4,356)			(2,776)			(11,875)
Discontinued operations ⁽¹⁾			(8,535)			24,002			92,845			108,312
Reclassification MFG operation ⁽²⁾			(34,017)			(22,132)			(26,921)			(83,070)
Write-offs			(43,494)			(342,995)			(3,155,302)			(3,541,791)
Loss allowance as of December 31, 2025		Ps.	1,104,503		Ps.	703,634		Ps.	1,856,639		Ps.	3,664,776

⁽¹⁾ See note 13.B., “Discontinued operation related to Multi Financial Group”.

⁽²⁾ Corresponds to the reclassification to Non-Current Assets Held for Sale of Multi Financial Group operation as of December 31, 2025, see note 13.A.

⁽³⁾	The unwind of discount on Stage 3 financial assets is reported within "interest income" so that interest income is recognized on the amortized cost (after deducting the ECL allowance)

⁽⁴⁾


December 31, 2025
			Stage 2			Stage 3
Stage 1			Lifetime ECL not			Lifetime ECL
12-month ECL			credit-impaired			credit-impaired			Total
Ps.	28,546		Ps.	52,023		Ps.	(39)		Ps.	80,530


December 31, 2024
			Stage 2			Stage 3
Stage 1			Lifetime ECL not			Lifetime ECL
12-month ECL			credit-impaired			credit-impaired			Total
Ps.	(147,090)		Ps.	20,156		Ps.	37,244		Ps.	(89,690)


December 31, 2023
			Stage 2			Stage 3
Stage 1			Lifetime ECL not			Lifetime ECL
12-month ECL			credit-impaired			credit-impaired			Total
Ps.	57,239		Ps.	51,135		Ps.	(13,718)		Ps.	94,656

The following table further explains changes in the gross carrying amount of the consumer portfolio to help explain their significance to the changes in the allowance for the same portfolio as discussed above.


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Total portfolio as of January 1, 2023		Ps.	52,529,128		Ps.	4,928,963		Ps.	1,961,353		Ps.	59,419,444
Transfers:
Transfer from stage 1 to stage 2			(5,701,009)			5,701,009			—			—
Transfer from stage 1 to stage 3			(1,029,073)			—			1,029,073			—
Transfer from stage 2 to stage 3			—			(2,089,300)			2,089,300			—
Transfer from stage 2 to stage 1			3,616,500			(3,616,500)			—			—
Transfer from stage 3 to stage 2			—			480,525			(480,525)			—
Transfer from stage 3 to stage 1			212,519			—			(212,519)			—
New financial assets originated or purchased			32,474,640			1,586,440			4,957,874			39,018,954
Financial assets that have been paid			(28,331,264)			(2,095,326)			(2,091,623)			(32,518,213)
Net remeasurement of amortized cost and other receivables			296,415			140,719			(1,523,793)			(1,086,659)
Sale of loan portfolio-loss allowance			(2,369)			(1,809)			(162,897)			(167,075)
Sale of loan portfolio-cash			—			(694)			(34,153)			(34,847)
Gain or loss on sale portfolio			—			(59)			10,805			10,746
FX and other movements			(832,014)			(77,989)			(5,218)			(915,221)
Discontinued operations ⁽¹⁾			(275,419)			(13,883)			(4,972)			(294,274)
Write-offs			(101,945)			(533,321)			(2,797,978)			(3,433,244)
Total portfolio as of December 31, 2023		Ps.	52,856,109		Ps.	4,408,775		Ps.	2,734,727		Ps.	59,999,611
Transfers:
Transfer from stage 1 to stage 2			(4,910,035)			4,910,035			—			—
Transfer from stage 1 to stage 3			(855,865)			—			855,865			—
Transfer from stage 2 to stage 3			—			(2,127,198)			2,127,198			—
Transfer from stage 2 to stage 1			1,875,510			(1,875,510)			—			—
Transfer from stage 3 to stage 2			—			291,914			(291,914)			—
Transfer from stage 3 to stage 1			204,521			—			(204,521)			—
New financial assets originated or purchased			29,868,948			1,482,560			3,834,567			35,186,075


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Financial assets that have been paid			(25,133,605)			(1,989,366)			(2,953,030)			(30,076,001)
Net remeasurement of amortized cost and other receivables			601,994			(26,806)			260,780			835,968
Sale of loan portfolio-loss allowance			(21)			(602)			(9,441)			(10,064)
Sale of loan portfolio-cash			(5)			(143)			(1,510)			(1,658)
Gain or loss on sale portfolio			(20)			(558)			(4,969)			(5,547)
FX and other movements			523,841			25,899			479			550,219
Discontinued operations ⁽¹⁾			(300,151)			(16,169)			(6,271)			(322,591)
Write-offs			(41,956)			(395,579)			(3,742,152)			(4,179,687)
Total portfolio as of December 31, 2024		Ps.	54,689,265		Ps.	4,687,252		Ps.	2,599,808		Ps.	61,976,325
Transfers:
Transfer from stage 1 to stage 2			(4,500,953)			4,500,953			—			—
Transfer from stage 1 to stage 3			(777,987)			—			777,987			—
Transfer from stage 2 to stage 3			—			(1,909,116)			1,909,116			—
Transfer from stage 2 to stage 1			1,737,149			(1,737,149)			—			—
Transfer from stage 3 to stage 2			—			216,466			(216,466)			—
Transfer from stage 3 to stage 1			189,616			—			(189,616)			—
New financial assets originated or purchased			38,775,713			1,038,560			2,732,577			42,546,850
Financial assets that have been paid			(31,372,070)			(2,079,908)			(2,991,735)			(36,443,713)
Net remeasurement of amortized cost and other receivables			(678,545)			(128,026)			1,063,142			256,571
Sale of loan portfolio-loss allowance			(7)			(354)			(115,099)			(115,460)
Sale of loan portfolio-cash			(1)			(32)			(10,205)			(10,238)
Gain or loss on sale portfolio			(1)			(41)			(12,720)			(12,762)
FX and other movements			(670,881)			(35,340)			1,410			(704,811)
Discontinued operations ⁽¹⁾			306,917			26,258			8,186			341,361
Reclassification MFG operation ⁽²⁾			(3,427,598)			(362,754)			(45,767)			(3,836,119)
Write-offs			(43,494)			(342,995)			(3,155,302)			(3,541,791)
Total portfolio as of December 31, 2025		Ps.	54,227,123		Ps.	3,873,774		Ps.	2,355,316		Ps.	60,456,213

⁽¹⁾See note 13.B., “Discontinued operation related to Multi Financial Group”.

⁽²⁾ Corresponds to the reclassification to Non-Current Assets Held for Sale of Multi Financial Group operation as of December 31, 2025, see note 13.A.

Mortgage loan portfolio


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Loss allowance as of January 1, 2023		Ps.	48,763		Ps.	52,639		Ps.	251,039		Ps.	352,441
Transfers:
Transfer from stage 1 to stage 2			(7,295)			7,295			—			—
Transfer from stage 1 to stage 3			(635)			—			635			—
Transfer from stage 2 to stage 3			—			(35,387)			35,387			—
Transfer from stage 3 to stage 2			—			9,526			(9,526)			—
Transfer from stage 2 to stage 1			26,638			(26,638)			—			—
Transfer from stage 3 to stage 1			10,329			—			(10,329)			—
Net remeasurement of loss allowance ⁽⁶⁾			(11,295)			59,040			(28,775)			18,970
New financial assets originated or purchased			9,206			2,298			46,643			58,147
Financial assets that have been derecognized			(5,974)			(3,465)			(8,428)			(17,867)
Unwind of discount ⁽³⁾			12			—			16,988			17,000
FX and other movements			332			(2,125)			(2,483)			(4,276)
Discontinued operations ⁽¹⁾			(16,636)			6,751			16,491			6,606
Write-offs			(8,365)			(3,601)			(39,068)			(51,034)
Loss allowance as of December 31, 2023		Ps.	45,080		Ps.	66,333		Ps.	268,574		Ps.	379,987
Transfers:
Transfer from stage 1 to stage 2			(9,481)			9,481			—			—
Transfer from stage 1 to stage 3			(414)			—			414			—
Transfer from stage 2 to stage 3			—			(48,596)			48,596			—


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Transfer from stage 3 to stage 2			—			13,789			(13,789)			—
Transfer from stage 2 to stage 1			30,885			(30,885)			—			—
Transfer from stage 3 to stage 1			9,525			—			(9,525)			—
Net remeasurement of loss allowance ⁽⁵⁾			5,282			68,567			62,110			135,959
New financial assets originated or purchased			9,758			1,729			3,956			15,443
Financial assets that have been derecognized			(5,924)			(1,684)			(9,909)			(17,517)
Unwind of discount ⁽³⁾			—			—			21,019			21,019
FX and other movements			241			1,270			1,330			2,841
Discontinued operations ⁽¹⁾			(3,046)			4,405			10,278			11,637
Write-offs			(21,818)			(12,570)			(41,666)			(76,054)
Loss allowance as of December 31, 2024		Ps.	60,088		Ps.	71,839		Ps.	341,388		Ps.	473,315
Transfers:
Transfer from stage 1 to stage 2			(11,209)			11,209			—			—
Transfer from stage 1 to stage 3			(741)			—			741			—
Transfer from stage 2 to stage 3			—			(39,189)			39,189			—
Transfer from stage 3 to stage 2			—			14,440			(14,440)			—
Transfer from stage 2 to stage 1			33,923			(33,923)			—			—
Transfer from stage 3 to stage 1			10,871			—			(10,871)			—
Net remeasurement of loss allowance ⁽⁴⁾			14,574			66,186			93,698			174,458
New financial assets originated or purchased			21,999			3,025			4,394			29,418
Financial assets that have been derecognized			(6,589)			(2,873)			(18,516)			(27,978)
Unwind of discount ⁽³⁾			—			—			18,859			18,859
FX and other movements			14			(1,699)			(1,640)			(3,325)
Discontinued operations ⁽¹⁾			(7,691)			79			10,329			2,717
Reclassification MFG operation ⁽²⁾			(2,312)			(6,961)			(9,080)			(18,353)
Write-offs			(34,189)			(17,265)			(95,502)			(146,956)
Loss allowance as of December 31, 2025		Ps.	78,738		Ps.	64,868		Ps.	358,549		Ps.	502,155

⁽¹⁾ See note 13.B., “Discontinued operation related to Multi Financial Group”.

⁽²⁾ Corresponds to the reclassification to Non-Current Assets Held for Sale of Multi Financial Group operation as of December 31, 2025, see note 13.A.

⁽³⁾	The unwind of discount on Stage 3 financial assets is reported within "interest income" so that interest income is recognized on the amortized cost (after deducting the ECL allowance)

⁽⁴⁾


December 31, 2025
			Stage 2			Stage 3
Stage 1			Lifetime ECL not			Lifetime ECL
12-month ECL			credit-impaired			credit-impaired			Total
Ps.	4,349		Ps.	9,330		Ps.	403		Ps.	14,082


December 31, 2024
			Stage 2			Stage 3
Stage 1			Lifetime ECL not			Lifetime ECL
12-month ECL			credit-impaired			credit-impaired			Total
Ps.	(1,468)		Ps.	3,316		Ps.	142		Ps.	1,990


December 31, 2023
		Stage 2		Stage 3
Stage 1		Lifetime ECL not		Lifetime ECL
12-month ECL		credit-impaired		credit-impaired		Total

Ps.

5,207

Ps.

4,604

Ps.

3,914

Ps.

13,725

The following table further explains changes in the gross carrying amount of the mortgage portfolio to help explain their significance to the changes in the allowance for the same portfolio as discussed above.


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Total portfolio as of January 1, 2023		Ps.	16,226,428		Ps.	1,159,795		Ps.	497,132		Ps.	17,883,355
Transfers:
Transfer from stage 1 to stage 2			(1,382,946)			1,382,946			—			—
Transfer from stage 1 to stage 3			(40,569)			—			40,569			—
Transfer from stage 2 to stage 3			—			(271,352)			271,352			—
Transfer from stage 2 to stage 1			1,082,759			(1,082,759)			—			—
Transfer from stage 3 to stage 2			—			66,023			(66,023)			—
Transfer from stage 3 to stage 1			79,530			—			(79,530)			—
New financial assets originated or purchased			3,594,678			71,625			2,094,419			5,760,722
Financial assets that have been paid			(2,142,766)			(109,535)			(2,147,384)			(4,399,685)
Net remeasurement of amortized cost and other receivables			207,149			30,833			56,297			294,279
FX and other movements			(723,260)			(70,394)			(15,102)			(808,756)
Discontinued operations ⁽¹⁾			(171,641)			(12,796)			(8,238)			(192,675)
Write-offs			(8,365)			(3,601)			(39,068)			(51,034)
Total portfolio as of December 31, 2023		Ps.	16,720,997		Ps.	1,160,785		Ps.	604,424		Ps.	18,486,206
Transfers:
Transfer from stage 1 to stage 2			(1,532,164)			1,532,164			—			—
Transfer from stage 1 to stage 3			(45,518)			—			45,518			—
Transfer from stage 2 to stage 3			—			(381,561)			381,561			—
Transfer from stage 2 to stage 1			1,036,878			(1,036,878)			—			—
Transfer from stage 3 to stage 2			—			96,914			(96,914)			—
Transfer from stage 3 to stage 1			90,665			—			(90,665)			—
New financial assets originated or purchased			5,389,137			63,254			55,457			5,507,848
Financial assets that have been paid			(2,280,712)			(116,394)			(127,047)			(2,524,153)
Net remeasurement of amortized cost and other receivables			254,106			43,166			61,477			358,749
FX and other movements			417,334			48,069			10,659			476,062
Discontinued operations ⁽¹⁾			(155,376)			(29,916)			(7,639)			(192,931)
Write-offs			(21,818)			(12,570)			(41,666)			(76,054)
Total portfolio as of December 31, 2024		Ps.	19,873,529		Ps.	1,367,033		Ps.	795,165		Ps.	22,035,727
Transfers:
Transfer from stage 1 to stage 2			(1,573,688)			1,573,688			—			—
Transfer from stage 1 to stage 3			(56,288)			—			56,288			—
Transfer from stage 2 to stage 3			—			(389,286)			389,286			—
Transfer from stage 2 to stage 1			1,141,698			(1,141,698)			—			—
Transfer from stage 3 to stage 2			—			103,954			(103,954)			—
Transfer from stage 3 to stage 1			99,271			—			(99,271)			—
New financial assets originated or purchased			6,990,303			173,598			157,440			7,321,341
Financial assets that have been paid			(2,938,553)			(113,749)			(185,270)			(3,237,572)
Net remeasurement of amortized cost and other receivables			(240,808)			(141,601)			(18,894)			(401,303)
FX and other movements			(447,513)			(84,769)			(12,160)			(544,442)
Discontinued operations ⁽¹⁾			148,874			36,798			9,420			195,092
Reclassification MFG operation ⁽²⁾			(2,460,484)			(496,366)			(153,327)			(3,110,177)
Write-offs			(34,189)			(17,265)			(95,502)			(146,956)
Total portfolio as of December 31, 2025		Ps.	20,502,152		Ps.	870,337		Ps.	739,221		Ps.	22,111,710

⁽¹⁾See note 13.B., “Discontinued operation related to Multi Financial Group”.

⁽²⁾ Corresponds to the reclassification to Non-Current Assets Held for Sale of Multi Financial Group operation as of December 31, 2025, see note 13.A.

Microcredit loan portfolio


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Loss allowance as of January 1, 2023		Ps.	6,238		Ps.	4,922		Ps.	27,811		Ps.	38,971
Transfers:
Transfer from stage 1 to stage 2			(3,411)			3,411			—			—
Transfer from stage 1 to stage 3			(1,308)			—			1,308			—
Transfer from stage 2 to stage 3			—			(10,612)			10,612			—
Transfer from stage 3 to stage 2			—			1,374			(1,374)			—
Transfer from stage 2 to stage 1			1,729			(1,729)			—			—
Transfer from stage 3 to stage 1			210			—			(210)			—
Net remeasurement of loss allowance ⁽⁴⁾			6,322			10,395			12,816			29,533
New financial assets originated or purchased			4,647			97			54			4,798
Financial assets that have been derecognized			(1,953)			(265)			(212)			(2,430)
Unwind of discount ⁽¹⁾			—			—			7,016			7,016
Write-offs			(406)			(1,227)			(22,595)			(24,228)
Loss allowance as of December 31, 2023		Ps.	12,068		Ps.	6,366		Ps.	35,226		Ps.	53,660
Transfers:
Transfer from stage 1 to stage 2			(2,380)			2,380			—			—
Transfer from stage 1 to stage 3			(24,943)			—			24,943			—
Transfer from stage 2 to stage 3			—			(8,815)			8,815			—
Transfer from stage 3 to stage 2			—			536			(536)			—
Transfer from stage 2 to stage 1			912			(912)			—			—
Transfer from stage 3 to stage 1			57			—			(57)			—
Net remeasurement of loss allowance ⁽³⁾			20,456			6,140			(3,299)			23,297
New financial assets originated or purchased			2,627			69			19			2,715
Financial assets that have been derecognized			(5,694)			(5,123)			(26,097)			(36,914)
Sales of portfolio			(3,042)			(191)			(26,398)			(29,631)
Unwind of discount ⁽¹⁾			—			—			1,684			1,684
Write-offs			(2)			(436)			(10,755)			(11,193)
Loss allowance as of December 31, 2024		Ps.	59		Ps.	14		Ps.	3,545		Ps.	3,618
Transfers:
Transfer from stage 1 to stage 3			(3)			—			3			—
Transfer from stage 2 to stage 1			2			(2)			—			—
Net remeasurement of loss allowance ⁽²⁾			(13)			(8)			(27)			(48)
Financial assets that have been derecognized			(25)			(4)			(12)			(41)
Unwind of discount ⁽¹⁾			—			—			76			76
Write-offs			(5)			—			(2,640)			(2,645)
Loss allowance as of December 31, 2025		Ps.	15		Ps.	—		Ps.	945		Ps.	960

⁽¹⁾	The unwind of discount on Stage 3 financial assets is reported within "interest income" so that interest income is recognized on the amortized cost (after deducting the ECL allowance)

⁽²⁾


December 31, 2025
			Stage 2			Stage 3
Stage 1			Lifetime ECL not			Lifetime ECL
12-month ECL			credit-impaired			credit-impaired			Total
Ps.	(1)		Ps.	(7)		Ps.	—		Ps.	(8)

⁽³⁾ This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies from the opening to the closing balance. The following table shows the impact by stage estimated using all parameters as of December 31, 2024 versus parameters as of December 31,2023 and the loan portfolio as of December 31, 2024.


December 31, 2024
			Stage 2			Stage 3
Stage 1			Lifetime ECL not			Lifetime ECL
12-month ECL			credit-impaired			credit-impaired			Total
Ps.	(8)		Ps.	6		Ps.	—		Ps.	(2)

⁽⁴⁾ This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies from the opening to the closing balance. The following table shows the impact by stage estimated using all parameters as of December 31, 2023 versus parameters as of December 31,2022 and the loan portfolio as of December 31, 2023.


December 31, 2023
			Stage 2			Stage 3
Stage 1			Lifetime ECL not			Lifetime ECL
12-month ECL			credit-impaired			credit-impaired			Total
Ps.	(96)		Ps.	29		Ps.	(6)		Ps.	(73)

The following table further explains changes in the gross carrying amount of the microcredit portfolio to help explain their significance to the changes in the allowance for the same portfolio as discussed above:


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Total portfolio as of January 1, 2023		Ps.	224,491		Ps.	14,056		Ps.	29,173		Ps.	267,720
Transfers:
Transfer from stage 1 to stage 2			(36,169)			36,169			—			—
Transfer from stage 1 to stage 3			(10,609)			—			10,609			—
Transfer from stage 2 to stage 3			—			(25,030)			25,030			—
Transfer from stage 2 to stage 1			9,226			(9,226)			—			—
Transfer from stage 3 to stage 2			—			2,946			(2,946)			—
Transfer from stage 3 to stage 1			516			—			(516)			—
New financial assets originated or purchased			214,273			1,387			41,681			257,341
Financial assets that have been paid			(178,828)			(6,329)			(22,883)			(208,040)
Net remeasurement of amortized cost and other receivables			4,054			1,207			(20,525)			(15,264)
Write-offs			(406)			(1,227)			(22,595)			(24,228)
Total portfolio as of December 31, 2023		Ps.	226,548		Ps.	13,953		Ps.	37,028		Ps.	277,529
Transfers:
Transfer from stage 1 to stage 2			(18,434)			18,434			—			—
Transfer from stage 1 to stage 3			(5,297)			—			5,297			—
Transfer from stage 2 to stage 3			—			(14,840)			14,840			—
Transfer from stage 2 to stage 1			3,202			(3,202)			—			—
Transfer from stage 3 to stage 2			—			1,329			(1,329)			—
Transfer from stage 3 to stage 1			153			—			(153)			—
New financial assets originated or purchased			329,590			16,273			58,483			404,346
Financial assets that have been paid			(317,251)			(19,019)			(37,916)			(374,186)
Net remeasurement of amortized cost and other receivables			4,241			135			(8,701)			(4,325)
Sale of loan portfolio-loss allowance			(3,042)			(191)			(26,398)			(29,631)
Sale of loan portfolio-cash			(218,931)			(12,397)			(26,837)			(258,165)
Write-offs			(2)			(436)			(10,755)			(11,193)
Total portfolio as of December 31, 2024		Ps.	777		Ps.	39		Ps.	3,559		Ps.	4,375
Transfers:
Transfer from stage 1 to stage 3			(41)			—			41			—
Transfer from stage 2 to stage 1			24			(24)			—			—
Transfer from stage 3 to stage 2			—			37			(37)			—
New financial assets originated or purchased			155			22			2,284			2,461
Financial assets that have been paid			(380)			(57)			(7,887)			(8,324)
Net remeasurement of amortized cost and other receivables			13			(11)			5,651			5,653
Write-offs			(5)			—			(2,640)			(2,645)
Total portfolio as of December 31, 2025		Ps.	543		Ps.	6		Ps.	971		Ps.	1,520

Interbank and overnight funds


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Loss allowance as of January 1, 2023		Ps.	1,444		Ps.	—		Ps.	—		Ps.	1,444
Transfers:
Transfer from stage 2 to stage 1			2			(2)			—			—
Net remeasurement of loss allowance ⁽³⁾			(122)			2			—			(120)
New financial assets originated or purchased			1,787			—			—			1,787
Financial assets that have been derecognized			(3,089)			—			—			(3,089)
Loss allowance as of December 31, 2023		Ps.	22		Ps.	—		Ps.	—		Ps.	22
Net remeasurement of loss allowance ⁽²⁾			731			1			—			732
New financial assets originated or purchased			99			—			—			99
Financial assets that have been derecognized			(58)			—			—			(58)
Loss allowance as of December 31, 2024		Ps.	794		Ps.	1		Ps.	—		Ps.	795


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Net remeasurement of loss allowance ⁽¹⁾			2			(1)			—			1
New financial assets originated or purchased			2,803			—			—			2,803
Financial assets that have been derecognized			(3,451)			—			—			(3,451)
Loss allowance as of December 31, 2025		Ps.	148		Ps.	—		Ps.	—		Ps.	148

⁽¹⁾


December 31, 2025
			Stage 2			Stage 3
Stage 1			Lifetime ECL not			Lifetime ECL
12-month ECL			credit-impaired			credit-impaired			Total
Ps.	21		Ps.	—		Ps.	—		Ps.	21

⁽²⁾ This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies from the opening to the closing balance. The following table shows the impact by stage estimated using all parameters as of December 31, 2024 versus parameters as of December 31,2023 and the loan portfolio as of December 31, 2024.


December 31, 2024
			Stage 2			Stage 3
Stage 1			Lifetime ECL not			Lifetime ECL
12-month ECL			credit-impaired			credit-impaired			Total
Ps.	6		Ps.	—		Ps.	—		Ps.	6

⁽³⁾ This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies from the opening to the closing balance. The following table shows the impact by stage estimated using all parameters as of December 31, 2023 versus parameters as of December 31,2022 and the loan portfolio as of December 31, 2023.


December 31, 2023
			Stage 2			Stage 3
Stage 1			Lifetime ECL not			Lifetime ECL
12-month ECL			credit-impaired			credit-impaired			Total
Ps.	(4)		Ps.	—		Ps.	—		Ps.	(4)

The following table further explains changes in the gross carrying amount of the interbank and overnight funds portfolio to help explain their significance to the changes in the allowance for the same portfolio as discussed above:


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Total portfolio as of January 1, 2023		Ps.	5,967,742		Ps.	—		Ps.	1		Ps.	5,967,743
New financial assets originated or purchased			206,661			—			—			206,661
Financial assets that have been paid			(6,003,176)			—			—			(6,003,176)
Net remeasurement of amortized cost and other receivables			(1,390)			—			(1)			(1,391)
FX and other movements			222,770			—			—			222,770
Total portfolio as of December 31, 2023		Ps.	392,607		Ps.	—		Ps.	—		Ps.	392,607
New financial assets originated or purchased			415,418			—			—			415,418
Financial assets that have been paid			(141,132)			—			—			(141,132)
Net remeasurement of amortized cost and other receivables			1,870			—			—			1,870
FX and other movements			36,292			—			—			36,292
Total portfolio as of December 31, 2024		Ps.	705,055		Ps.	—		Ps.	—		Ps.	705,055
New financial assets originated or purchased			2,251,099			—			—			2,251,099
Financial assets that have been paid			(940,957)			—			—			(940,957)


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Net remeasurement of amortized cost and other receivables			(2,812)			—			—			(2,812)
FX and other movements			(94,073)			—			—			(94,073)
Discontinued operations ⁽¹⁾			(1,904)			—			—			(1,904)
Reclassification MFG operation ⁽²⁾			(138,892)			—			—			(138,892)
Total portfolio as of December 31, 2025		Ps.	1,777,516		Ps.	—		Ps.	—		Ps.	1,777,516

⁽¹⁾See note 13.B., “Discontinued operation related to Multi Financial Group”.

⁽²⁾ Corresponds to the reclassification to Non-Current Assets Held for Sale of Multi Financial Group operation as of December 31, 2025, see note 13.A.

The following table further explains changes in the movements in the allowance for the of investments in debt securities at FVOCI portfolio:

Investments in debt securities at FVOCI


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Loss allowance balance as of January 1, 2023		Ps.	12,686		Ps.	—		Ps.	—		Ps.	12,686
Net remeasurement of loss allowance ⁽⁴⁾			(892)			—			—			(892)
New financial assets originated or purchased			6,470			—			—			6,470
Financial assets that have been derecognized			(4,342)			—			—			(4,342)
FX and other movements			(950)			—			—			(950)
Loss allowance balance as of December 31, 2023		Ps.	12,972		Ps.	—		Ps.	—		Ps.	12,972
Net remeasurement of loss allowance ⁽³⁾			452			—			—			452
New financial assets originated or purchased			9,029			—			—			9,029
Financial assets that have been derecognized			(4,895)			—			—			(4,895)
FX and other movements			752			—			—			752
Loss allowance balance as of December 31, 2024		Ps.	18,310		Ps.	—		Ps.	—		Ps.	18,310
Net remeasurement of loss allowance ⁽²⁾			5,751			48			—			5,799
New financial assets originated or purchased			13,400			—			—			13,400
Financial assets that have been derecognized			(8,050)			—			—			(8,050)
Effect of discontinued operations ⁽¹⁾			(2,727)			—			—			(2,727)
FX and other movements			(126)			(4)			—			(130)
Loss allowance balance as of December 31, 2025		Ps.	26,558		Ps.	44		Ps.	—		Ps.	26,602

⁽¹⁾See note 13.B., “Discontinued operation related to Multi Financial Group”.

⁽²⁾ This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies from the opening to the closing balance. The following table shows the impact by stage estimated using all parameters as of December 31, 2025 versus parameters as of December 31, 2024 and the investments portfolio as of December 31, 2025.


December 31, 2025
			Stage 2			Stage 3
Stage 1			Lifetime ECL not			Lifetime ECL
12-month ECL			credit-impaired			credit-impaired			Total
Ps.	1,554		Ps.	56		Ps.	—		Ps.	1,610

⁽³⁾ This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies from the opening to the closing balance. The following table shows the impact by stage estimated using all parameters as of December 31, 2024 versus parameters as of December 31, 2023 and the investments portfolio as of December 31, 2024.


December 31, 2024
				Stage 2			Stage 3
	Stage 1			Lifetime ECL not			Lifetime ECL
	12-month ECL			credit-impaired			credit-impaired			Total
Ps.	(90)		Ps.	—		Ps.	—		Ps.	(90)

⁽⁴⁾ This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies from the opening to the closing balance. The following table shows the impact by stage estimated using all parameters as of December 31, 2023 versus parameters as of December 31, 2022 and the investments portfolio as of December 31, 2023.


December 31, 2023
				Stage 2			Stage 3
	Stage 1			Lifetime ECL not			Lifetime ECL
	12-month ECL			credit-impaired			credit-impaired			Total
Ps.	(359)		Ps.	—		Ps.	—		Ps.	(359)

The following table further explains changes in the movements in the allowance for investments in debt securities at amortized cost portfolio:

Investments in debt securities at amortized cost


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Loss allowance balance as of January 1, 2023		Ps.	28,563		Ps.	8,367		Ps.	—		Ps.	36,930
Transfer from stage 2 to stage 1			1,485			(1,485)			—			—
Net remeasurement of loss allowance⁽⁵⁾			(14,315)			(996)			—			(15,311)
New financial assets originated or purchased			2,669			—			—			2,669
Financial assets that have been derecognized			(1,466)			—			—			(1,466)
FX and other movements			(4,323)			(1,617)			—			(5,940)
Loss allowance balance as of December 31, 2023		Ps.	12,613		Ps.	4,269		Ps.	—		Ps.	16,882
Net remeasurement of loss allowance ⁽⁴⁾			(1,774)			(562)			—			(2,336)
New financial assets originated or purchased			3,279			—			—			3,279
Financial assets that have been derecognized			(1,366)			—			—			(1,366)
FX and other movements			1,577			639			—			2,216
Loss allowance balance as of December 31, 2024		Ps.	14,329		Ps.	4,346		Ps.	—		Ps.	18,675
Transfer from stage 2 to stage 1			4,346			(4,346)			—			—
Net remeasurement of loss allowance ⁽³⁾			(6,960)			—			—			(6,960)
New financial assets originated or purchased			4,268			—			—			4,268
Financial assets that have been derecognized			(1,531)			—			—			(1,531)
Discontinued operations ⁽¹⁾			(3,722)			—			—			(3,722)
Reclassification MFG operation ⁽²⁾			(901)			—			—			(901)
FX and other movements			(1,551)			—			—			(1,551)
Loss allowance balance as of December 31, 2025		Ps.	8,278		Ps.	—		Ps.	—		Ps.	8,278

⁽¹⁾See note 13.B., “Discontinued operation related to Multi Financial Group”.

⁽²⁾Corresponds to the reclassification to Non-Current Assets Held for Sale of Multi Financial Group operation as of December 31, 2025, see note 13.A.

⁽³⁾ This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies

from the opening to the closing balance. The following table shows the impact by stage estimated using all parameters as of December 31, 2025 versus parameters as of December 31, 2024 and the investments portfolio as of December 31, 2025.


December 31, 2025
			Stage 2			Stage 3
Stage 1			Lifetime ECL not			Lifetime ECL
12-month ECL			credit-impaired			credit-impaired			Total
Ps.	262		Ps.	—		Ps.	—		Ps.	262

⁽⁴⁾ This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies from the opening to the closing balance. The following table shows the impact by stage estimated using all parameters as of December 31, 2024 versus parameters as of December 31, 2023 and the investments portfolio as of December 31, 2024.


December 31, 2024
				Stage 2			Stage 3
	Stage 1			Lifetime ECL not			Lifetime ECL
	12-month ECL			credit-impaired			credit-impaired			Total
Ps.	(404)		Ps.	—		Ps.	—		Ps.	(404)

⁽⁵⁾ This amount includes impact of the measurement of ECL due to changes made in PDs/LGDs/EADs and changes made to model assumptions and methodologies from the opening to the closing balance. The following table shows the impact by stage estimated using all parameters as of December 31, 2023 versus parameters as of December 31, 2022 and the investments portfolio as of December 31, 2023.


December 31, 2023
				Stage 2			Stage 3
	Stage 1			Lifetime ECL not			Lifetime ECL
	12-month ECL			credit-impaired			credit-impaired			Total
Ps.	9,632		Ps.	—		Ps.	—		Ps.	9,632

Other accounts receivable

General approach


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Loss allowance as of January 1, 2023		Ps.	24,977		Ps.	20,201		Ps.	140,123		Ps.	185,301
Net remeasurement of loss allowance			4,389			257			46,867			51,513
FX and other movements			(1,789)			(1,270)			(2,464)			(5,523)
Write-offs			(1,612)			—			(43,397)			(45,009)
Loss allowance as of December 31, 2023		Ps.	25,965		Ps.	19,188		Ps.	141,129		Ps.	186,282
Net remeasurement of loss allowance			4,932			2,779			58,789			66,500
FX and other movements			860			229			3,212			4,301
Write-offs			(531)			—			(85,622)			(86,153)
Loss allowance as of December 31, 2024		Ps.	31,226		Ps.	22,196		Ps.	117,508		Ps.	170,930
Net remeasurement of loss allowance			2,442			3,633			46,158			52,233
FX and other movements			(1,305)			(606)			(2,624)			(4,535)
Write-offs			(1,202)			—			(58,548)			(59,750)
Loss allowance as of December 31, 2025		Ps.	31,161		Ps.	25,223		Ps.	102,494		Ps.	158,878

Simplified approach


		Loss allowance
Loss allowance as of January 1, 2023		Ps.	197,115
Entity deconsolidation			(3,245)
Discontinued operations ⁽¹⁾			177
Provision charged to profit or loss			39,555
Recovery for partial payments from the clients			(14,581)
Write-offs			(18,516)
Exchange gains (losses) in foreign currency			(1,123)
Loss allowance as of December 31, 2023		Ps.	199,382
Discontinued operations ⁽¹⁾			1,025
Provision charged to profit or loss			55,271
Recovery for partial payments from the clients			(29,727)
Write-offs			(35,436)
Exchange gains (losses) in foreign currency			526
Loss allowance as of December 31, 2024		Ps.	191,041
Reclassification MFG operation ⁽²⁾			(4,225)
Discontinued operations ⁽¹⁾			(456)
Provision charged to profit or loss			121,395
Recovery for partial payments from the clients			(12,224)
Write-offs			(61,006)
Exchange gains (losses) in foreign currency			(711)


		Loss allowance
Loss allowance as of December 31, 2025		Ps.	233,814

⁽¹⁾See note 13.B., “Discontinued operation related to Multi Financial Group”.

⁽²⁾Corresponds to the reclassification to Non-Current Assets Held for Sale of Multi Financial Group operation as of December 31, 2025, see note 13.A.

Loan commitments and financial guarantee contracts


					Stage 2
					Lifetime			Stage 3
		Stage 1			ECL not			Lifetime
		12-month			credit-			ECL credit-
		ECL			impaired			impaired			Total
Loss allowance as of January 1, 2023		Ps.	58,160		Ps.	6,461		Ps.	289		Ps.	64,910
Transfers:
Transfer from stage 1 to stage 2			(1,690)			1,690			—			—
Transfer from stage 1 to stage 3			(218)			—			218			—
Transfer from stage 2 to stage 3			—			(329)			329			—
Transfer from stage 3 to stage 2			—			4			(4)			—
Transfer from stage 2 to stage 1			1,105			(1,105)			—			—
Transfer from stage 3 to stage 1			29			—			(29)			—
Net remeasurement of loss allowance			(14,124)			(769)			211			(14,682)
New loan commitments and financial guarantees issued			18,604			1,732			(65)			20,271
FX and other movements			(318)			(2)			—			(320)
Discontinued operations ⁽¹⁾			89									89
Loss allowance as of December 31, 2023		Ps.	61,637		Ps.	7,682		Ps.	949		Ps.	70,268
Transfers:
Transfer from stage 1 to stage 2			(1,233)			1,233			—			—
Transfer from stage 1 to stage 3			(503)			—			503			—
Transfer from stage 2 to stage 3			—			(167)			167			—
Transfer from stage 3 to stage 2			—			1			(1)			—
Transfer from stage 2 to stage 1			2,998			(2,998)			—			—
Transfer from stage 3 to stage 1			20			—			(20)			—
Net remeasurement of loss allowance			(17,928)			(14)			544			(17,398)
New loan commitments and financial guarantees issued			18,204			1,934			92			20,230
FX and other movements			220			—			—			220
Discontinued operations ⁽¹⁾			(906)			—			—			(906)
Loss allowance as of December 31, 2024		Ps.	62,509		Ps.	7,671		Ps.	2,234		Ps.	72,414
Transfers:
Transfer from stage 1 to stage 2			(1,094)			1,094			—			—
Transfer from stage 1 to stage 3			(226)			—			226			—
Transfer from stage 2 to stage 3			—			(219)			219			—
Transfer from stage 3 to stage 2			—			5			(5)			—
Transfer from stage 2 to stage 1			1,954			(1,954)			—			—
Transfer from stage 3 to stage 1			56			—			(56)			—
Net remeasurement of loss allowance			(17,120)			(1,671)			(1,070)			(19,861)
New loan commitments and financial guarantees issued			23,891			1,981			123			25,995
FX and other movements			(111)			(1)			(6)			(118)
Discontinued operations ⁽¹⁾			209			4			(46)			167
Reclassification MFG operation ⁽²⁾			(760)			(4)			(8)			(772)
Loss allowance as of December 31, 2025		Ps.	69,308		Ps.	6,906		Ps.	1,611		Ps.	77,825

⁽¹⁾ See note 13.B., “ Discontinued operation related to Multi Financial Group”.

⁽²⁾ Corresponds to the reclassification to Non-Current Assets Held for Sale of Multi Financial Group operation as of December 31, 2025, see note 13.A.

4.1.6 Concentrations of credit risk

Loan portfolio

Policies to prevent excessive credit-risk concentration

In order to prevent excessive concentrations of credit risk at an individual, economic group, country or economic sectors level, each financial subsidiary of Grupo Aval maintains updated exposure thresholds to limit concentration. The exposure limit by a financial subsidiary of Grupo Aval to an individual client or economic group depends on the risk profile of the client (or economic group), the nature of the risk of the debtor and the experience of each financial subsidiary in a specific market or sector.

Concentration risk control is key to the risk management process. Grupo Aval´s financial subsidiaries monitor the degree of credit risk concentration by sector and individual or group customer.

In order to avoid credit risk concentration at Grupo Aval level, management relies on the financial subsidiaries Credit Risk Unit or its equivalent, which consolidates, and monitors the credit risk exposures of all financial subsidiaries, to determine the maximum levels of concentration.

Pursuant to Colombian regulations, in 2024 financial subsidiaries in Colombia cannot grant unsecured loans to borrowers, which on a combined basis exceed 10% of the financial subsidiary´s regulatory capital (patrimonio técnico, by its name in Spanish language) calculated according to the definitions of the Ministry of Finance. Loans maybe more than 10% of the regulatory capital (patrimonio técnico) of the financial subsidiary when they are secured by acceptable collateral and/or certain guarantees. In 2025, a new regulation went into effect modifying the regime relating to large exposures and legal credit limits, so banks in Colombia generally cannot have exposures with a counterparty or connected group of counterparties that exceed 25% of the bank's regulatory capital Tier 1 (patrimonio básico ordinario, by its name in Spanish language + patrimonio básico adicional, by its name in Spanish language) calculated in accordance with the definitions of the Ministry of Finance.

Concentration by sector

Below is the credit portfolio distribution of Grupo Aval by economic sector as of December 31, 2025, and 2024:


Sector		December 31, 2025 ⁽¹⁾			%		December 31, 2024			%
Consumer services		Ps.	87,550,262		45.4	%	Ps.	89,687,446		44.8	%
Commercial services			41,868,516		21.7	%		43,792,710		21.9	%
Construction			14,015,379		7.3	%		15,046,109		7.5	%
Public services			10,088,667		5.2	%		9,218,309		4.6	%
Government			7,392,815		3.8	%		5,471,013		2.7	%
Transportation and communications			6,579,198		3.4	%		6,499,070		3.2	%
Food, beverage and tobacco			6,294,320		3.3	%		7,577,678		3.8	%
Other industrial and manufacturing products			5,316,713		2.8	%		6,857,011		3.4	%
Chemical production			4,890,011		2.5	%		5,539,036		2.8	%
Agricultural			3,266,907		1.7	%		4,538,856		2.3	%
Mining products and oil			2,415,758		1.3	%		2,754,170		1.4	%
Trade and tourism			1,495,870		0.8	%		1,724,337		0.9	%
Other			1,481,527		0.8	%		1,430,380		0.7	%
Total of each economic sector		Ps.	192,655,943		100.0	%	Ps.	200,136,125		100.0	%

Concentration by country

The detail of credit risk at the level of Grupo Aval in the different geographic areas determined according to the domicile of the debtor, without taking into consideration loan loss provisions as of December 31, 2025, and 2024 is as follows:


December 31, 2025		Commercial			Consumer			Mortgages			Microcredit			Interbank and overnight funds			Total
Colombia		Ps.	98,000,384		Ps.	60,447,939		Ps.	22,111,710		Ps.	1,520		Ps.	1,075,072		Ps.	181,636,625
United States			6,393,092			8,153			—			—			—			6,401,245
Panamá ⁽¹⁾			773,506			93			—			—			702,444			1,476,043
Guatemala			310,287			—			—			—			—			310,287
Costa Rica			176,154			—			—			—			—			176,154
El Salvador			123,951			—			—			—			—			123,951
Honduras			64,863			—			—			—			—			64,863
Other countries			2,466,747			28			—			—			—			2,466,775
Total gross loan portfolio		Ps.	108,308,984		Ps.	60,456,213		Ps.	22,111,710		Ps.	1,520		Ps.	1,777,516		Ps.	192,655,943

⁽¹⁾ The decrease corresponds to the reclassification to Non-Current Assets Held for Sale of Multi Financial Group operation as of December 31, 2025, see note 13.A.


December 31, 2024		Commercial			Consumer			Mortgages			Microcredit			Interbank and overnight funds			Total
Colombia		Ps.	95,610,708		Ps.	57,719,813		Ps.	18,494,856		Ps.	4,375		Ps.	395,382		Ps.	172,225,134
Panamá			9,455,147			4,248,452			3,540,871			—			214,187			17,458,657
United States			6,685,567			7,984			—			—			93,474			6,787,025
Guatemala			432,151			—			—			—			—			432,151
Costa Rica			125,689			—			—			—			2,012			127,701
Honduras			392,236			—			—			—			—			392,236
El Salvador			13,919			—			—			—			—			13,919
Nicaragua			412			—			—			—			—			412
Other countries			2,698,814			76			—			—			—			2,698,890
Total gross loan portfolio		Ps.	115,414,643		Ps.	61,976,325		Ps.	22,035,727		Ps.	4,375		Ps.	705,055		Ps.	200,136,125

Concentration by currency

The classification of loan portfolio by type of currency is as follows:


December 31, 2025		Colombian Pesos			Foreign currency ⁽¹⁾			Total
Commercial		Ps.	91,723,007		Ps.	16,585,977		Ps.	108,308,984
Consumer			60,344,158			112,055			60,456,213
Residential mortgage			22,111,659			51			22,111,710
Microcredit			1,520			—			1,520
Interbank and overnight funds			817,691			959,825			1,777,516
Total gross loan portfolio		Ps.	174,998,035		Ps.	17,657,908		Ps.	192,655,943

⁽¹⁾ The decrease corresponds to the reclassification to Non-Current Assets Held for Sale of Multi Financial Group operation as of December 31, 2025, see note 13.A.


December 31, 2024		Colombian Pesos			Foreign currency			Total
Commercial		Ps.	86,935,650		Ps.	28,478,993		Ps.	115,414,643
Consumer			57,615,997			4,360,328			61,976,325
Residential mortgage			18,494,740			3,540,987			22,035,727
Microcredit			4,375			—			4,375
Interbank and overnight funds			272,307			432,748			705,055
Total gross loan portfolio		Ps.	163,323,069		Ps.	36,813,056		Ps.	200,136,125

As of December 31, 2025, the loan portfolio in foreign currency represents 9.2% of the total portfolio, equivalent to US$ 4,699 million. As of December 31, 2024, the loan portfolio in foreign currency represents 18.4%, equivalent to US$ 8,349 million.

Investment debt securities

Grupo Aval entities monitor concentrations of credit risk by sector and by geographic location. An analysis of concentrations of credit risk from investment securities is shown below.

Concentration by sector

Trading debt securities (see note 8.1)

The balance of financial assets in investments in trading debt securities includes the following as of December 31, 2025, and 2024:


	December 31,		December 31,
	2025⁽¹⁾		2024
In Colombian Pesos
Securities issued or secured by Colombian Government	Ps.	15,704,043	Ps.	10,623,734
Securities issued or secured by other Colombian Government entities		205,855		183,760
Securities issued or secured by other financial entities		691,834		864,036
Securities issued or secured by non-financial sector entities		1,939		7,749
Others		12,508		15,768
Total In Colombian Pesos	Ps.	16,616,179	Ps.	11,695,047

In foreign currency
Securities issued or secured by Colombian Government	Ps.	113,801	Ps.	17,824
Securities issued or secured by other Colombian Government entities		7,224		—
Securities issued or secured by foreign Governments		492,675		75,379
Securities issued or secured by other financial entities		340,735		138,158
Securities issued or secured by non-financial sector entities		—		1,064
Others		12,230		9,942
Total In foreign currency	Ps.	966,665	Ps.	242,367
Total trading debt securities	Ps.	17,582,844	Ps.	11,937,414

Investments in debt securities mandatorily at FVTPL (see note 9.1)

The balance of financial assets in investments in debt securities mandatorily at FVTPL includes the following as of December 31, 2025, and 2024:


	December 31,		December 31,
	2025		2024
In Colombian Pesos
Others⁽¹⁾	Ps.	—	Ps.	1,425
Total debt securities mandatorily at FVTPL	Ps.	—	Ps.	1,425

⁽¹⁾Corresponds to the BOCEA issued by Titularizadora Colombiana, in which Banco AV Villas held a position. At maturity, on December 16, 2025, the entity exercised its right to convert the instrument into shares

Investments in debt securities at FVOCI

The balance of financial assets in investments in debt securities at FVOCI includes the following as of December 31, 2025, and 2024:


	December 31,		December 31,
	2025⁽¹⁾		2024
In Colombian Pesos


	December 31,			December 31,
	2025⁽¹⁾			2024
Securities issued or secured by Colombian Government	Ps.	22,233,814		Ps.	15,207,640
Securities issued or secured by other Colombian Government entities		257,482			173,682
Securities issued or secured by other financial entities		658,535			813,342
Securities issued or secured by non-financial sector entities		3,003			3,968
Others		87,176			202,264
Total In Colombian Pesos	Ps.	23,240,010		Ps.	16,400,896
In foreign currency
Securities issued or secured by Colombian Government	Ps.	2,368,885		Ps.	3,060,268
Securities issued or secured by other Colombian Government entities		248,770			289,063
Securities issued or secured by foreign Governments⁽¹⁾		1,334,686			4,502,810
Securities issued or secured by central banks⁽¹⁾		—			204,855
Securities issued or secured by other financial entities		1,095,010			1,813,441
Securities issued or secured by non-financial sector entities⁽¹⁾		19,615			245,692
Others		148,981			533,173
Total In foreign currency	Ps.	5,215,947		Ps.	10,649,302
Total debt securities at FVOCI	Ps.	28,455,957		Ps.	27,050,198

Investments in debt securities at amortized cost

The balance of financial assets in investments in debt securities at amortized cost includes the following as of December 31, 2025, and 2024:


		December 31,			December 31,
In Colombian Pesos	2025⁽¹⁾			2024
Securities issued or secured by Colombian Government	Ps.	1,860,258		Ps.	2,553,693
Securities issued or secured by other Colombian Government entities		5,351,209			5,563,208
Others		—			32,759
Total In Colombian Pesos	Ps.	7,211,467		Ps.	8,149,660
In foreign currency
Securities issued or secured by foreign Governments	Ps.	30,540		Ps.	30,655
Securities issued or secured by other financial entities		1,963,450			2,350,549
Securities issued or secured by non-financial sector entities⁽¹⁾		—			145,553
Others⁽¹⁾		—			31,950
Total In foreign currency	Ps.	1,993,990		Ps.	2,558,707
Total investments in debt securities at amortized cost	Ps.	9,205,457		Ps.	10,708,367

Concentration of investments in debt securities by location


			December 31,			December 31,
		2025			2024
Colombia		Ps.	50,054,384		Ps.	39,769,376
Panama⁽¹⁾			3,385,573			6,114,059
United States Of America⁽¹⁾			567,849			1,543,389
Brazil			188,017			128,970
Mexico			343,116			583,979
Costa Rica⁽¹⁾			—			110,714
Chile			372,114			524,430
Peru			231,408			443,698
Paraguay⁽¹⁾			—			102,473
Japan			25,795			22,957
Germany			15,437			15,806
Total by country		Ps.	55,183,693		Ps.	49,359,851
Bladex (Foreign Trade Bank of Latin America)			—			216,218
Andean Development Corporation (Corporación Andina de Fomento)			51,853			117,061
Inter-American Corporation for the Financing of Infrastructure			8,712			4,274

Multilateral		Ps.	60,565		Ps.	337,553
Total investments in debt securities		Ps.	55,244,258		Ps.	49,697,404

Concentration by Sovereign Debt

As a general rule, Grupo Aval considers sovereign risk to be the risk assumed in deposits with Central Banks (including the mandatory deposits), investments in debt issues of a Colombian Government. In addition, the risk arising from transactions with public sector entities that have the following features: their funds are obtained only from fiscal income, they are legally recognized as entities directly included in the government sector, and their activities are of a non-commercial nature.

Sovereign risk exposure arises mainly from Grupo Aval’s banking subsidiaries obligations to maintain certain mandatory deposits in Central Banks and from the fixed-income portfolios held as part of the on-balance-sheet structural interest rate risk management strategy and in the trading books of the treasury department. Most of these exposures are denominated in pesos and are financed through peso denominated repurchase agreements or customer deposits.

As of December 31, 2025, and 2024, the investment portfolio of financial assets in debt instruments is comprised mainly of securities issued or secured by entities of the Republic of Colombia, which represent 79.90% and 72.58%, respectively of the total portfolio.

Below is the detail of Grupo Aval’s sovereign debt portfolio issued by Central Governments per country:


		December 31, 2025					December 31, 2024
					%					%
Investment grade ⁽¹⁾
Colombia ⁽⁵⁾		Ps.	—		—	%	Ps.	28,361,534		78.64	%
Panama			973,505		2.21	%		2,724,276		7.55	%
Chile			182,837		0.41	%		238,765		0.66	%
Peru			32,414		0.07	%		37,023		0.10	%
Germany			15,436		0.03	%		15,806		0.04	%
Mexico			107,177		0.24	%		17,987		0.05	%
United States of America			518,409		1.17	%		1,465,956		4.06	%
Total Investment grade		Ps.	1,829,778		4.15	%	Ps.	32,861,347		91.10	%
Speculative ⁽²⁾
Brazil			28,122		0	%		30,266		0.08	%
Colombia⁽⁵⁾			42,280,800		96	%		3,101,625		8.60	%
Costa Rica			—		—	%		78,765		0.22	%
Total Speculative		Ps.	42,308,922		95.85	%	Ps.	3,210,656		8.90	%
		Ps.	44,138,700		100.00	%	Ps.	36,072,003		100.00	%

Below is the detail of Grupo Aval’s debt portfolio issued by Central Banks:


		December 31, 2025						December 31, 2024
					%					%
Investment Grade ⁽¹⁾
Panama ⁽⁴⁾⁽³⁾		Ps.	—		—	%	Ps.	204,855		100.00	%
Total Investment grade		Ps.	—		—	%	Ps.	204,855		100.00	%

Total sovereign risk		Ps.	44,138,700		100.00	%	Ps.	36,276,858		100.00	%

⁽¹⁾Investment grade includes Fitch Ratings Colombia S.A. risk ratings from F1+ to F3, BRC de Colombia ratings from BRC 1+ to BRC 3, and Standard & Poor’s ratings from AAA to BBB–.
⁽²⁾Speculative grade includes Fitch Ratings Colombia S.A. risk ratings from B to E, BRC de Colombia ratings from BRC 4 to BRC 6, and Standard & Poor’s ratings from BB+ to D.
⁽³⁾The decrease corresponds to the reclassification to non-current assets held for sale related to the Multi Financial Group operation as of December 31, 2025; see Note 13.A.
⁽⁴⁾ These investments correspond to Banco Nacional de Panamá, which is the official bank and performs central bank functions; however, it does not have the authority to issue currency or establish reserve requirements.
⁽⁵⁾ During 2025, S&P Global Ratings downgraded the Government of Colombia’s rating from BBB– to BB+, which resulted in its risk level moving from investment grade to speculative.

4.1.7 Modified Financial Assets - troubled debt restructuring business process.

Each financial subsidiary of Grupo Aval periodically carries out, at the request of the client, restructurings of obligations. Such restructurings generally consist of extensions of tenors, decrease of interest rates, partial write-off of indebtedness or payment with assets of the debtor or guarantor.

Our banking subsidiaries follow highly rigorous definitions and policies in this management process, so that it is performed in accordance with the best practices and in strict compliance with regulatory requirements. In connection to this, Grupo Aval´s banking subsidiaries have a detailed policy with regard to the aforementioned transactions.

The objective of granting such restructurings is to provide the client with a viable alternative to meet its obligations to the bank and to adapt to changing conditions.

When a loan is restructured due to a debtor´s financial difficulties, the debt is flagged within the records of each bank as a restructured credit in accordance with the regulations of the Superintendency of Finance. The restructuring process has a negative impact on the debtor’s rating, which can only be improved when the client has complied during a prudent period with the terms of the restructurings, its financial condition has improved or when sufficient additional guarantees have been obtained.

Restructured loans are included for impairment evaluation and determination of provisions. However, the marking of a credit as restructured does not necessarily imply its rating is impaired, because in some cases new guarantees are obtained supporting the obligation.

The following is the balance of restructured loans as of December 31, 2025, and 2024:


Restructured loans		December 31, 2025			December 31, 2024
Local currency		Ps.	5,089,268		Ps.	5,495,475
Foreign currency ⁽¹⁾			33,430			1,955,612
Total restructured		Ps.	5,122,698		Ps.	7,451,087

⁽¹⁾ The decrease corresponds to the reclassification to Non-Current Assets Held for Sale of Multi Financial Group operation as of December 31, 2025, see note 13.A.

4.1.8 Foreclosed assets business process

When persuasive collection processes or credit restructurings are not effective, a legal proceeding is carried out or an agreement is reached with the client for the receipt of assets as payment. Each subsidiary of the financial sector has clearly established policies for receiving assets and has a separate department specialized in the management of these cases and in charge of their eventual sale or liquidation.

During the years ended December 31, 2025, and 2024, the following is the total of foreclosed assets received and sold during such periods:


		December 31, 2025			December 31, 2024
Foreclosed assets received		Ps.	189,624		Ps.	116,299
Foreclosed assets sold			130,716			43,731

4.1.9 Loan commitments and financial guarantee contracts

As part of our operations, Grupo Aval´s financial subsidiaries grants guarantees and letters of credit to its customers wherein Grupo Aval financial subsidiaries are irrevocably committed to make payments to third parties when customers do not comply with their obligations with such third parties. These products have the same policies for approval of disbursements of loans regarding client’s credit risk and guarantees required according to the circumstances of each client.

The commitments for credit extension represent unused portions of authorizations to grant loans, use of credit cards, overdraft limits and letters of credit. With respect to credit risk over commitments to extend credit lines, Grupo Aval is potentially exposed to credit

risk in an amount equal to the total amount of unused commitments, if the unused amount were to be withdrawn in whole. However, the amount of the loss is less that the total amount of commitments unused, since most commitments to extend credits are contingent on the customer maintaining specific credit risk standards.

Pending unused credit lines and guarantees do not necessarily represent future cash-out flows, because such facilities may expire and not be used whole or in part.

Following is the detail of the guarantees, letters of credit and credit commitments on non-used credit lines as of December 31, 2025, and 2024.

Loan commitments and financial guarantee contracts


		December 31, 2025 ⁽¹⁾			December 31, 2024
		Notional amount			Notional amount
Unused credit card limits		Ps.	14,847,091		Ps.	12,933,383
Approved credits not disbursed			6,792,792			5,432,167
Credit arrangements			5,108,039			4,583,513
Guarantees			2,199,093			3,082,949
Unused limits of overdrafts			2,271,247			2,261,456
Unused letters of credit			400,330			382,953
Total		Ps.	31,618,592		Ps.	28,676,421

The following is the detail of the credit commitments by type of currency:


		December 31, 2025			December 31, 2024
Colombian Pesos		Ps.	30,392,045		Ps.	25,916,587
U.S. dollars ⁽¹⁾			1,206,958			2,741,438
Euro			14,873			14,517
Other			4,716			3,879
Total		Ps.	31,618,592		Ps.	28,676,421

⁽¹⁾ The decrease corresponds to the reclassification to Non-Current Assets Held for Sale of Multi Financial Group operation as of December 31, 2025, see note 13.A.

4.1.10 Offset of financial assets and financial liabilities

The disclosures set out in the following tables include financial assets and liabilities that:

●

Are offset in the Group’s statement of financial position; or

●

Are subject to an enforceable master netting arrangement or similar agreement that covers similar financial instruments, irrespective of whether they are offset in the statement of financial position.

The ‘similar agreements’ include derivative clearing agreements; global master repurchase agreements and global master securities lending agreements. Similar financial instruments include derivatives, sale-and-repurchase agreements, reverse sale-and-repurchase agreements, and securities borrowing and lending agreements. Financial instruments such as loans and deposits are not disclosed in the following tables unless they are offset in the statement of financial position.

The ISDA (International Swaps and Derivatives Association) and similar master netting arrangements do not meet the criteria for offsetting in the statement of financial position. This is because they create for the parties to the agreement a right of set-off of recognized amounts that is enforceable only following an event of default, insolvency or bankruptcy of Grupo Aval or of the counterparties or following other predetermined events. In addition, Grupo Aval and its counterparties do not intend to settle on a net basis or to realize the assets and settle the liabilities simultaneously.

Grupo Aval receives and gives collateral in the form of cash and marketable securities in respect of the following transactions:

●

Derivatives; and

●

Sale-and-repurchase, and reverse sale-and-repurchase agreements.

This collateral is subject to standard industry terms including, when appropriate, an ISDA credit support annex. This means that securities received/given as collateral can be pledged or sold during the term of the transaction but have to be returned on maturity of the transaction. The terms also give each party the right to terminate the related transactions on the counterparty’s failure to post collateral.

The gross amounts of financial assets and liabilities and their net amounts disclosed in the tables below have been measured in the statement of financial position on the following basis:

●

Derivative assets and liabilities – fair value;

●

Assets and liabilities resulting from sale-and-repurchase agreements, reverse sale-and repurchase agreements and securities lending and borrowing – amortized cost.

The following is the detail of the financial instruments subject to offset contractually required as of December 31, 2025, and 2024:

December 31, 2025


		Gross			Gross Amounts			Net Amounts of			Gross Amounts Not
		Amounts of			Offset in the			Assets Presented in			Offset in the Consolidated Balance Sheet
		Recognized			Consolidated			the Consolidated			Financial			Cash collateral			Net
		Assets			Balance Sheet			Balance Sheet			Instruments			Received			Exposure
Offsetting assets
Derivatives		Ps.	2,453,579		Ps.	—		Ps.	2,453,579		Ps.	(2,039,389)		Ps.	(75,563)		Ps.	338,627
Repurchase agreements			2,233,729			—			2,233,729			(98,164)			—			2,135,565
Total		Ps.	4,687,308		Ps.	—		Ps.	4,687,308		Ps.	(2,137,553)		Ps.	(75,563)		Ps.	2,474,192


		Gross			Gross Amounts			Net Amounts of			Gross Amounts Not
		Amounts of			Offset in the			Liabilities Presented in			Offset in the Consolidated Balance Sheet
		Recognized			Consolidated			the Consolidated			Financial			Cash collateral			Net
		Liabilities			Balance Sheet			Balance Sheet			Instruments			Delivered			Exposure
Offsetting liabilities
Derivatives		Ps.	1,986,281		Ps.	—		Ps.	1,986,281		Ps.	(335,732)		Ps.	(269,536)		Ps.	1,381,013
Repurchase agreements			21,784,346			—			21,784,346			(22,357,129)			(184,107)			(756,890)
Total		Ps.	23,770,627		Ps.	—		Ps.	23,770,627		Ps.	(22,692,861)		Ps.	(453,643)		Ps.	624,123

December 31, 2024

Gross

Gross Amounts

Net Amounts of

Gross Amounts Not

Amounts of

Offset in the

Assets Presented in

Offset in the Consolidated Balance Sheet

Recognized

Consolidated

the Consolidated

Financial

Cash collateral

Net

 

Assets

 

Balance Sheet

 

Balance Sheet

 

Instruments

 

Received

 

Exposure

Offsetting assets

Derivatives

Ps.

1,023,313

Ps.

—

Ps.

1,023,313

Ps.

(1,951,440)

Ps.

(162,729)

Ps.

(1,090,856)

Repurchase agreements

1,940,488

—

1,940,488

(667)

—

1,939,821

Total

Ps.

2,963,801

Ps.

—

Ps.

2,963,801

Ps.

(1,952,107)

Ps.

(162,729)

Ps.

848,965

Gross

Gross Amounts

Net Amounts of

Gross Amounts Not

Amounts of

Offset in the

Liabilities Presented in

Offset in the Consolidated Balance Sheet

Recognized

Consolidated

the Consolidated

Financial

Cash collateral

Net

 

Liabilities

 

Balance Sheet

 

Balance Sheet

 

Instruments

 

Delivered

 

Exposure

Offsetting liabilities

Derivatives

Ps.

1,033,592

Ps.

—

Ps.

1,033,592

Ps.

(208,181)

Ps.

(71,745)

Ps.

753,666

Repurchase agreements

17,686,789

—

17,686,789

(20,719,224)

(336,987)

(3,369,422)

Total

Ps.

18,720,381

Ps.

—

Ps.

18,720,381

Ps.

(20,927,405)

Ps.

(408,732)

Ps.

(2,615,756)

Disclosure of risk management, market risk [text block]

4.2 Market Risk

Market risk refers to the risk that a change in the level of one or more market prices, rates, indices, volatilities, correlations or other market factors, such as liquidity, will result in losses in a position or in the portfolio.

Grupo Aval´s financial subsidiaries (namely Banco de Bogotá, Banco de Occidente, Banco Popular, Banco AV Villas, the trust companies of the financial subsidiaries, Corficolombiana y Porvenir) actively participate in money markets, foreign exchange markets and capital markets, for both of their books (for balance sheet risk management and trading book) and to provide financial services to their customers. This is subject to established policies and risk limits. In that regard, they hold financial asset portfolios within the allowed limits and risk levels.

Market risk arises from the positions of Grupo Aval´s financial subsidiaries in debt securities investment portfolios, derivatives and equity instruments. These risks are created by changes in factors such as interest rates, inflation, foreign currency exchange rates, share prices, credit margins of instruments and their volatility, as well as the liquidity in the markets where Grupo Aval operates.

Our business units and trading desks are responsible for ensuring that market risk exposures are well-managed and prudent. The risk management groups and our business unit management ensure that these risks are measured and closely monitored. A variety of limits and controls are designed to manage price and liquidity risk. Market risk is monitored through various mechanisms such as: statistic analysis (using Value-at-Risk models and related analytical measures), risk factor sensitivity analysis, and routine stress testing, conducted in collaboration with the business units by the Market Risk Unit. The material risks identified by these processes are summarized in reports produced by the Market Risk Unit that are circulated to and discussed with senior management.

4.2.1 Trading Book Risk

Grupo Aval´s financial subsidiaries trade financial instruments for various reasons, mainly:

●

To offer products tailored to specific customer needs. Some of these products are designed to hedge the financial risks of customers.

●

To take advantage of arbitrage opportunities among different yield curves, assets and markets, obtaining returns with an adequate use of capital.

●

To hedge asset and liability risk positions on proprietary positions, to act on behalf of customers or to take advantage of arbitrage opportunities mainly in foreign exchange and interest rates in both local and foreign markets.

In carrying out these operations, Grupo Aval´s financial subsidiaries take risks, within predetermined limits. These risks are mitigated with the use of derivative products and other financial instruments within limits that are permanently monitored by risk.

The following is a breakdown of Grupo Aval’s financial assets and liabilities exposed to trading risk held at December 31, 2025 and 2024:


		December 31, 2025 ⁽¹⁾			December 31, 2024
Financial assets at fair value
Debt financial assets
Trading investments in debt securities		Ps.	17,582,844		Ps.	11,937,414
Investments in debt securities mandatorily at FVTPL			—			1,425
Investments in debt securities at FVOCI			28,455,957			27,050,198
Total debt securities		Ps.	46,038,801		Ps.	38,989,037
Derivative assets instruments		Ps.	2,217,021		Ps.	969,294
Hedging derivatives assets			236,558			54,019
Total derivative		Ps.	2,453,579		Ps.	1,023,313
Total financial assets		Ps.	48,492,380		Ps.	40,012,350
Liabilities
Derivative liabilities instruments		Ps.	1,951,439		Ps.	1,011,934
Hedging derivatives liabilities			34,842			21,658

Total financial liabilities		Ps.	1,986,281		Ps.	1,033,592
Net position		Ps.	46,506,099		Ps.	38,978,758

4.2.2 Description of Objectives, Policies and Processes to Manage Trading Risk

Our financial subsidiaries participate in money markets, foreign exchange markets and capital markets to meet their needs and those of their customers, subject to established policies and risk levels. In this respect, they manage different portfolios of financial assets within the limits and risk levels allowed.

The risks assumed by Grupo Aval´s financial subsidiaries in transactions related to the trading or treasury book are consistent with the overall trading strategy, considering the market depth for each instrument, its impact on risk-weighted assets and regulatory capital, the profit budget established for each business unit, and the balance sheet structure.

Trading strategies are established on the basis of approved limits, in an effort to balance the risk / return relationship. Moreover, there is a structure of limits consistent with Grupo Aval’s general philosophy and is based on capital levels, earnings performance and risk appetite.

The Integral Risk Management System (SIAR in Spanish) allows Grupo Aval´s financial subsidiaries to identify, measure, control and monitor the market risk they are exposed to in carrying out their operations.

There are several scenarios in which Grupo Aval´s financial subsidiaries are exposed to trading risks.

●

Interest Rate Risk

Grupo Aval’s financial subsidiaries are exposed to interest rate risk as a result of its market-making activities and proprietary trading in interest rate sensitive financial instruments (e.g., risk arising from changes in the level or implied volatility of interest rates, the timing of mortgage prepayments, the shape of the yield curve and credit spreads for credit sensitive instruments). Additionally, as part of the interest rate risk management, asset and liability management committees have been established to monitor the execution of these strategies.

●

Foreign Exchange Risk

Grupo Aval’s financial subsidiary’s portfolios are exposed to foreign exchange rate and implied volatility risk as a result of market making negotiation in foreign currencies and from maintaining foreign exchange positions.

●

Equity Price Risk and Mutual Fund Risk

Grupo Aval´s financial subsidiaries are exposed to equity price risk in specific investments and are exposed to mutual fund risk.

4.2.2.1 Risk Management

Grupo Aval financial subsidiaries manage their trading positions by employing a variety of risk mitigation strategies. These strategies include diversification of risk exposures and hedging through the purchase or sale of positions in related securities and financial instruments, including a variety of derivative products (e.g., futures, forwards, swaps and options). The financial subsidiaries manage their market risk associated with its trading activities on a decentralized basis. Our corporate risk unit supervises the level of risk taken in order to ensure that its global exposure limits are observed.

Senior management and the Boards of Directors of our banks and their financial subsidiaries play an active role in managing and controlling market risk. They do so by analyzing established reports and through committees that comprehensively monitor - both technically and fundamentally - the different variables that influence domestic and foreign markets. This process is intended to support strategic trading and portfolio decisions.

Analyzing and monitoring the market risks that Grupo Aval´s financial subsidiaries take in their operations is essential for decision making and to assess potential effects on their financial position. An ongoing analysis of macroeconomic conditions is necessary in order to achieve an ideal combination of market risk, return and liquidity.

The risks assumed in financial operations are reflected in a limit structure that includes different types of instruments, specific trading strategies, the market depth in which Grupo Aval´s financial subsidiaries operate, the impact on risk-weighted assets and regulatory capital, as well as the balance sheet structure. These limits are monitored daily and reported regularly to the Board of Directors of Grupo Aval´s financial subsidiaries.

In order to minimize interest rate and exchange rate risks in specific positions and transactions, Grupo Aval´s financial subsidiaries manage hedging strategies by taking positions in derivative instruments such as non-deliverable forwards (NDF) related to securities, money market transactions and foreign exchange forwards.

4.2.2.2 Methods Used to Measure Market Risk

The Market Risk areas independently review the Company’s trading portfolios on a regular basis from a market risk perspective utilizing Value at Risk (VaR) internal and regulatory models, and other quantitative and qualitative risk measures and analyses. Each trading business and the market risk areas also use, as appropriate, measures such as sensitivity to changes in interest rates, prices, and implied volatilities to monitor and report market risk exposures. Stress testing, which measures the impact on the value of existing portfolios of specified changes in market factors for certain products, is performed periodically and reviewed by our risk and trading areas. Reports summarizing material risk exposures are produced by the market risk areas and are provided to senior management for their review and challenge.

The Boards of Directors and the Risk Committees of Grupo Aval´s financial subsidiaries approve a framework of limits based on the value-at-risk related to the annual budget.

Regulatory VaR (regulatory calculation)

The Regulatory VaR calculation is primarily used for the Superintendency of Finance’s solvency ratio calculations. Each bank has standard models for capital purposes; however, they also maintain internal models in order to manage their day-to- day risk and profit decisions.

The Superintendency of Finance methodology is based on the Basel II model. This model applies only to the financial subsidiaries’ investment portfolio and excludes investments not classified as trading. Total market risk is calculated on a daily basis by aggregating the VaR for each risk exposure category on a ten-day horizon, based on risk factors calculated under extreme market stress scenarios. VaR at month-end is part of the capital adequacy ratio calculation (as set forth in Decree 2555 of 2010). The Superintendency of Finance’s rules require the financial subsidiaries to calculate VaR for the following risk factors: interest rate risk, foreign exchange rate risk, equity price risk and fund risk. Correlations between risk factors are not considered. The fluctuations in the portfolio’s VaR depend on sensitivity factors determined by the Superintendency of Finance, modified duration and changes in balances outstanding. The ten-day horizon is defined as the average time in which an entity could sell a trading position in the market.

The VaR calculation includes all the portfolios of the entities and their financial subsidiaries and is estimated under the methodology defined by the Superintendency of Finance of Colombia.

These VaR calculation models are used to determine the occurrence of potential losses among the different business units. The methods also allow comparisons of activities in different markets and identification of the riskiest positions in treasury activities. These tools are also used to determine limits on traders’ positions and to promptly review positions and trading strategies in response to changes in market conditions. VaR models have inherent limitations, partially because they rely on historical data, which may not be an indicative of future market conditions. VaR models could overestimate or underestimate the value at risk if market conditions vary significantly and they do not calculate the greatest possible loss. That’s why each company uses additional measurement tools in order to compensate for the VaR limitations. Expected Shortfall analysis, stress test and back tests are part of the risk measurement tools in the financial subsidiaries. The methods used to measure VaR are assessed regularly and back tested to check their efficiency.

Grupo Aval´s financial subsidiaries have tools to carry out portfolio stress and/or sensitivity tests, using extreme scenario simulations. Additionally, there are limits according to the "risk type" associated with each of the instruments comprising the different portfolios. These limits are related to sensitivity or impact on the value of the portfolio as a result of fluctuations of specific risk factors such as: interest rate (Rho), exchange rate (Delta) and volatility (Vega).

Grupo Aval´s financial subsidiaries have counterparty and trading limits for each trader in the trading platforms for the markets where they operate. Trading limits are controlled daily by the back and middle offices of each entity. Trading limits for individual traders are assigned based upon the individual´s level in the organization, market and trading experience and product and portfolio management knowledge.

There is also a process to monitor the prices of fixed-income securities traded in foreign markets published by investment price providers for those jurisdictions.

In addition, fixed income securities are subject to a qualitative liquidity analysis to determine the market depth for those instruments.

Finally, the daily transaction monitoring process includes controlling different aspects of trading, such as terms of negotiation, non-conventional or off-market transactions, and related party transactions.

According to the standard model, the market value-at-risk (VaR) for Grupo Aval´s financial subsidiaries consolidated at their level of December 31, 2025 and 2024 was as follows:


		At December 31, 2025				At December 31, 2024
				Basis points of				Basis points of
Entity		Value at Risk		regulatory capital		Value at Risk		regulatory capital
Banco Bogotá S.A.	Ps.	311,408		50	Ps.	318,203		52
Banco de Occidente S.A.		152,515		43		381,972		113
Banco AV Villas S.A.		15,658		16		22,567		26
Banco Popular S.A. ⁽¹⁾		304,481		173		291,145		152
Corficolombiana S.A. ⁽¹⁾		294,820		674		320,096		674
Porvenir S.A.		4,352		53		3,832		57

⁽¹⁾ The market value at risk information corresponds to Banco Popular's consolidated information. Corficolombiana's information is presented separately, due to its materiality.

The following tables show the VaR calculation relating to each of the risk factors described above and based on the Superintendency of Finance Methodology (Regulatory VaR) for the years ended December 31, 2025 and 2024, for a ten-day horizon for each of our Colombian banking subsidiaries. The minimum, maximum and average levels are determined based on end-of-quarter calculations, using consolidated results from the last four quarters..

Banco de Bogotá S.A


Maximum, Minimum and Average VaR Values
At December 31, 2025
		Minimum		Average		Maximum		Period end
Interest rate	Ps.	53,274	Ps.	122,866	Ps.	156,064	Ps.	53,274
Exchange rate		146,593		194,097		255,463		255,463
Shares		1,240		1,799		2,083		1,240
Mutual funds		423		913		1,431		1,431

Maximum, Minimum and Average VaR Values
At December 31, 2024
		Minimum		Average		Maximum		Period end
Interest rate	Ps.	160,445	Ps.	427,563	Ps.	552,647	Ps.	160,445
Exchange rate		91,087		141,196		166,334		155,113
Shares		1,947		10,929		37,644		2,077
Mutual funds		411		1,549		2,788		568

The market risk-weighted assets of Banco de Bogotá, as of December 31, 2025, accounted for 3.13% of the total risk-weighted assets. As of December 31, 2024, market risk-weighted assets represented 3.25% of the total risk-weighted assets.

Banco de Occidente S.A


Maximum, Minimum and Average VaR Values
At December 31, 2025

		Minimum		Average		Maximum		Period end
Interest rate	Ps.	148,047	Ps.	189,910	Ps.	238,845	Ps.	148,047
Exchange rate		837		7,838		16,567		3,273
Shares		—		—		—		—
Mutual funds		1,195		1,344		1,441		1,195


Maximum, Minimum and Average VaR Values
At December 31, 2024
		Minimum		Average		Maximum		Period end
Interest rate	Ps.	264,941	Ps.	322,068	Ps.	379,009	Ps.	379,009
Exchange rate		1,078		3,402		9,151		1,971
Shares		—		—		—		—
Mutual funds		934		991		1,031		992

The market risk-weighted assets of Banco de Occidente, as of December 31, 2025, accounted for 3.3% of the total risk-weighted assets. As of December 31, 2024, market risk-weighted assets represented 8.2% of the total risk-weighted assets.

Banco Comercial AV Villas S.A


Maximum, Minimum and Average VaR Values
At December 31, 2025
		Minimum		Average		Maximum		Period end
Interest rate	Ps.	12,001	Ps.	15,501	Ps.	21,498	Ps.	15,601
Exchange rate		2		38		157		49
Shares		—		—		—		—
Mutual funds		7		110		281		7


Maximum, Minimum and Average VaR Values
At December 31, 2024
		Minimum		Average		Maximum		Period end
Interest rate	Ps.	22,193	Ps.	29,979	Ps.	43,936	Ps.	22,193
Exchange rate		4		84		472		148
Shares		—		—		—		—
Mutual funds		121		251		447		225

The market risk-weighted assets of Banco AV Villas, as of December 31, 2025, accounted for 1.3% of the total risk-weighted assets. As of December 31, 2024, market risk-weighted assets represented 2.1% of the total risk-weighted assets.

Banco Popular S.A


Maximum, Minimum and Average VaR Values
At December 31, 2025⁽¹⁾
		Minimum		Average		Maximum		Period end
Interest rate	Ps.	220,418	Ps.	253,696	Ps.	296,841	Ps.	251,328
Exchange rate		32,932		44,440		58,254		32,932
Shares		175		12,995		26,680		175
Mutual funds		18,364		19,547		20,286		20,045


Maximum, Minimum and Average VaR Values
At December 31, 2024 ⁽¹⁾
		Minimum		Average		Maximum		Period end
Interest rate	Ps.	205,759	Ps.	328,266	Ps.	410,228	Ps.	205,759
Exchange rate		19,869		39,424		59,084		51,982
Shares		6,884		11,331		15,090		15,090
Mutual funds		18,201		19,668		23,969		18,314

⁽¹⁾ The market value at risk information corresponds to Banco Popular's consolidated information. Corficolombiana's information is presented separately, due to its materiality.

The market risk-weighted assets of Banco Popular, as of December 31, 2025, accounted for 7.55% of the total risk-weighted assets. As of December 31, 2024, market risk-weighted assets represented 5.61% of the total risk-weighted assets.

Corficolombiana S.A


Maximum, Minimum and Average VaR Values
At December 31, 2025 ⁽¹⁾
		Minimum		Average		Maximum		Period end
Interest rate	Ps.	204,636	Ps.	240,097	Ps.	280,691	Ps.	261,509
Exchange rate		32,284		43,485		56,181		32,284
Shares		—		21,975		26,505		—
Mutual funds		1,021		1,139		1,341		1,027

⁽¹⁾ The market value at risk information at December 31, 2025 corresponds to Corficolombiana's separate information.


Maximum, Minimum and Average VaR Values
At December 31, 2024 ⁽¹⁾
		Minimum		Average		Maximum		Period end
Interest rate	Ps.	220,886	Ps.	271,679	Ps.	341,730	Ps.	252,417
Exchange rate		19,172		38,723		55,653		51,653
Shares		6,731		11,457		14,918		14,918
Mutual funds		983		1,200		1,424		1,108

⁽¹⁾ The market value at risk information at December 31, 2024 corresponds to Corficolombiana's separate information.

The market risk-weighted assets of Corficolombiana, as of December 31, 2025, accounted for 12.3% of the total risk-weighted assets. As of December 31, 2024, market risk-weighted assets represented 13.31% of the total risk-weighted assets..

As Corficolombiana does not have a relevant number of loans or other significant risk weighted assets, the ratio of the market risk weighted assets to total risk weighted assets is higher than in the banks.

Porvenir S.A

As a pension fund, Porvenir has a value-at-risk measurement methodology that differs from credit establishments and is established by the Superintendency of Finance. The following tables show the VaR calculation relating to each of the risk factors described above and based on that Methodology (Regulatory VaR) for the years ended December 31, 2025, and 2024, for a ten-day horizon.


Maximum, Minimum and Average VaR Values
At December 31, 2025
		Minimum		Average		Maximum		Period end
Interest rate	Ps.	5,892	Ps.	7,093	Ps.	8,508	Ps.	8,508
Exchange rate		10		342		1,143		64
Shares		1,948		2,740		4,488		2,627
Mutual funds		591		1,293		2,183		2,183


Maximum, Minimum and Average VaR Values
December 31, 2024
		Minimum		Average		Maximum		Period end
Interest rate	Ps.	7,623	Ps.	14,368	Ps.	16,520	Ps.	7,623
Exchange rate		7		233		419		275
Shares		1,624		2,090		2,654		1,790
Mutual funds		782		2,365		6,478		1,074

The market risk-weighted assets of Porvenir, as of December 31, 2025, accounted for 2.13% of the total risk-weighted assets. As of December 31, 2024, market risk-weighted assets represented 2.1% of the total risk-weighted assets.

Investment Price Risk in Equity Instruments

Equity Investments

The variations in equity price risk measured according to the regulatory VaR methodology consider investments in equity securities included in the treasury book, including investments in shares issued abroad and listed in Colombia, and exclude, in the case of credit institutions, investments that have been deducted from the Entity's core capital. In 2024, Corficolombiana held investments subject to regulatory VaR. As of December 31, 2025, however, none of the subsidiaries maintain investments that meet these characteristics.

4.2.3 Structural foreign exchange risk

Grupo Aval´s financial subsidiaries have agencies and subsidiaries offshore and have assets and liabilities in foreign currencies and are thus exposed to changes in the exchange rates, primarily the United States Dollar. Foreign exchange risk is present when there are assets and liabilities denominated in foreign currency, when investments are made in foreign subsidiaries and branches and when we extend loans or take funds in foreign currency. Foreign exchange risk is also present in foreign currency off- balance sheet transactions.

Subsidiaries of the financial sector in Colombia are authorized by the country’s central bank (Banco de la República) to trade currencies and maintain balances in foreign currency in accounts abroad. Colombian law allows banks to maintain a net daily asset or liability position in foreign currency, determined as the difference in foreign currency denominated rights and foreign currency denominated obligations, including both on and off-balance sheet positions. On an entity individual basis, the average of this difference over three business days cannot exceed twenty percent (20%) of the entity’s regulatory capital. On a consolidated basis, the average of this difference over three business days (positive or negative) cannot exceed forty percent (40%) of the consolidated entity´s regulatory capital.

The maximum and minimum total foreign currency position and the spot foreign currency position are determined according to the regulatory capital of each entity. The regulatory capital used (individual or consolidated) is that of the last business day two months prior. The exchange rate used in the calculation is the average of the exchange rate established by the Superintendency of Finance for the previous month or the last calculation on a consolidated basis.

A substantial amount of Grupo Aval’s foreign currency assets and liabilities are in U.S. dollars. Details of the assets and liabilities in foreign currency held by Grupo Aval as of December 31, 2025 and 2024 are shown below:


December 31,2025				Other currencies		Total in
		U.S. dollars		converted to U.S.		Colombian pesos
Account		(Millions)		dollars (Millions)		(Millions)
Financial assets ⁽¹⁾
Cash and cash equivalents		2,075		108	Ps.	8,054,803
Trading investments in debt securities		257		—		965,570
Investments in debt securities at FVOCI		1,384		4		5,215,235
Investments in debt securities at amortized cost		8		—		30,057
Loan portfolio financial assets at amortized cost		4,695		5		17,657,908
Derivative financial assets held for trading		296		1		1,114,961
Derivative financial assets held for hedging		—		—		637
Trade receivable		688		—		2,585,220
Total financial assets		9,403		118	Ps.	35,624,391

				Other currencies		Total in
		U.S. dollars		converted to U.S.		Colombian pesos
Account		(Millions)		dollars (Millions)		(Millions)
Financial liabilities ⁽²⁾
Derivative financial liabilities held for trading		279		1	Ps.	1,053,795
Derivative financial liabilities held for hedging		3		—		9,741
Customer deposits		4,283		5		16,107,271
Financial obligations		7,369		8		27,716,615
Total financial liabilities		11,934		14	Ps.	44,887,422
Net financial asset (liability) position		(2,531)		104	Ps.	(9,263,031)

⁽²⁾ As of December 2025, the liabilities related to Multi Financial Group (MFG) were no longer presented line-by-line on the Consolidated Statements of Financial Position and were instead reported in a single line item within “Liabilities directly associated with non-current assets held for sale”, see note 13.A.


December 31,2024				Other currencies		Total in
		U.S. dollars		converted to U.S.		Colombian pesos
Account		(Millions)		dollars (Millions)		(Millions)
Financial assets
Cash and cash equivalents		1,338		62	Ps.	5,913,128
Trading investments in debt securities		61		—		267,836
Investments in debt securities at FVOCI		2,412		4		10,649,301
Investments in debt securities at amortized cost		580		—		2,558,707
Loan portfolio financial assets at amortized cost		8,347		2		36,813,056
Derivative financial assets held for trading		207		6		341,310
Derivative financial assets held for hedging		2		—		43,377
Trade receivable		714		—		3,164,035
Total financial assets		13,661		74	Ps.	59,750,750

				Other currencies		Total in
		U.S. dollars		converted to U.S.		Colombian pesos
Account		(Millions)		dollars (Millions)		(Millions)
Financial liabilities
Derivative financial liabilities held for trading		243		4	Ps.	236,242
Derivative financial liabilities held for hedging		1		—		16,408
Customer deposits		7,246		34		32,100,339
Financial obligations		8,258		5		36,432,897
Total financial liabilities		15,748		43	Ps.	68,785,886
Net financial asset (liability) position		(2,087)		31	Ps.	(9,035,136)

Grupo Aval’s financial subsidiaries hedge their foreign exchange exposure using derivatives instruments, especially forwards. The net foreign currency position of each subsidiary is monitored on a daily basis.

Grupo Aval has several investments in foreign subsidiaries and branches whose net assets are exposed to foreign exchange risk because of the translation of gains or losses for the purpose of consolidating their financial statements. The exposure arising from net assets in foreign operations is hedged primarily with financial obligations, bonds and foreign exchange derivative instruments.

The following table presents sensitivities of profit or loss before taxes and equity (OCI) to reasonably possible changes in exchange rates applied at the end of the reporting period relative to the functional currency of the respective Group entities, with all other variables held constant:


December 31,2025	Increase			Decrease
	Ps.100 per U.S.			Ps.100 per U.S.
	dollar			dollar
Equity (mainly OCI) ⁽¹⁾	Ps.	1,591		Ps.	(1,591)
Profit and loss before taxes		(71,717)			71,717


December 31,2024		Increase			Decrease
		Ps.100 per U.S.			Ps.100 per U.S.
		dollar			dollar
Equity (mainly OCI) ⁽¹⁾		Ps.	1,801		Ps.	(1,801)
Profit and loss before taxes			(53,818)			53,818

⁽¹⁾ The sensitivity in equity considers mainly assets and liabilities of entities with functional currencies different from the Group’s presentation currency compensated with derivatives and financial labilities designated to hedge net investments in foreign operations.

The sensitivity in profit or loss was calculated for monetary assets and liabilities denominated in currencies other than the functional currency of the respective entities of the Group, including intercompany balances which are not hedged. The sensitivity takes into consideration the variations that could occur in the spot exchange rate, excluding from this calculation any changes that may arise in the forward curve. The Group’s exposure to currency risk at the end of the reporting period is not representative of the typical exposure during the year.

4.2.4 Interest Rate Risk in the Banking Book

In Colombia, the Superintendency of Finance, in line with the best practices of the Basel Committee on Banking Supervision, issued External Circular 025 on November 17, 2022. This circular introduced guideline applicable to the management of Interest Rate Risk in the Banking Book (IRRBB) and the Credit Risk Spread in the Banking Book (CRSBB) within the financial system. The afore mentioned circular establishes that supervised entities must adopt specific strategies, policies, and procedures for the adequate management of IRRBB. Additionally, it introduces two indicators to recognize the level of exposure of entities to balance sheet risks: Economic Value of Equity (EVE) and Net Interest Margin (NIM).

External Circular 025 of 2022, effective as of December 1, 2024, required supervised entities that, as of December 31, maintained a banking book to report balance sheet risk exposure indicators on an individual basis. In addition, the circular established the obligation to report consolidated balance sheet risk exposure indicators for entities with consolidated financial statements that include institutions holding a banking book. This requirement applies for the first time with financial information as of December 31, 2025.

The following section outlines the general considerations of the standard measurement methodology established under the applicable regulations, which must be applied to the assets and liabilities recorded in the Banking Book of Banco de Bogotá, Banco de Occidente, Banco Popular, and Banco AV Villas. Furthermore, in the case of Banco de Bogotá and Banco de Occidente, this methodology must also be applied to the financial assets and liabilities consolidated with subsidiaries that maintain banking books. Corficolombiana, however, was exempted by the supervisory authority from applying this regulation, as it does not maintain an accounting book for measurement purposes.

Financial subsidiaries are exposed to Interest Rate Risk in the Banking Book (IRRBB) when interest rates change, as the present value and timing of future cash flows may be affected. This, in turn, impacts the underlying value of the entity's assets, liabilities, and off-balance sheet items, and consequently, the Economic Value of Equity (EVE). Changes in interest rates also affect the entity's earnings by altering interest-sensitive income and expenses, thereby impacting its Net Interest Margin (NIM).

This risk includes (i) gap risk, which arises from the mismatch (the difference between assets and liabilities on the entity's balance sheet for a given date and time band) in the maturity structure of instruments exposed to interest rate risk; (ii) basis risk, which corresponds to the impact of relative changes in interest rates for financial instruments with similar maturities but whose prices are determined using different interest rate indices; and (iii) option risk, which refers to the probability that the entity will incur losses due to the exercise of options embedded implicitly or explicitly in assets, liabilities, and off-balance sheet items that are contractually and legally exposed, such as loan prepayments.

To manage IRRBB, the banks within Grupo Aval have established in their policies that this risk is only applicable to Banking Book operations that do not consume capital for market risk, including asset, liability, and off-balance sheet operations with such exposure.

The measurement of IRRBB is conducted using two main metrics: the Economic Value of Equity (EVE), which assesses the fluctuation of equity in response to changes in interest rates using a liquidation balance sheet, and the Net Interest Margin (NIM), which calculates the impact on interest income due to movements in interest rates using a constant balance sheet and a 12-month window.

The regulation establishes, for both individual and consolidated information, the application of the outlier test. This test compares the maximum Delta VEP calculated by the entity under interest rate shock scenarios against 15% of the sum of Ordinary Core Capital (CET1 – Patrimonio Básico Ordinario in spanish language) and Additional Core Capital (ATI1 – Patrimonio Básico Adicional in spanish language) in effect at the reporting date. As of the reporting date, this reference established in the regulation remains solely a monitoring threshold and, for the time being, does not impose restrictions on the operation of our Banks. For entities that exceed this level in the outlier test, the regulation requires the submission of an adjustment plan that includes one or more of the following measures to mitigate the impact of increased exposure to IRRBB: (i) reduce exposures to IRRBB, (ii) impose restrictions on internal risk parameters, (iii) enhance the risk management framework, (iv) evaluate increasing capital resources, or (v) adopt other measures that allow mitigating the level of exposure to IRRBB.

In accordance with the regulation, Delta EVE corresponds to the maximum difference in the Economic Value of Equity (EVE) observed between the baseline scenario and six scenarios simulating adverse movements in interest rate curves, as follows:

●

Parallel upward shock: COP 400 bps, UVR 200 bps, USD 200 bps, and other shocks depending on the significant currency.

●

Parallel downward shock: COP 400 bps, UVR 200 bps, USD 200 bps, and other shocks depending on the significant currency.

●

Steepening shock (short-term rates down and long-term rates up): COP short-term 500 bps, COP long-term 300 bps, UVR short-term 300 bps, UVR long-term 100 bps, USD short-term 300 bps, USD long-term 150 bps, and other shocks depending on the significant currency.

●

Flattening shock (short-term rates up and long-term rates down): COP short-term 500 bps, COP long-term 300 bps, UVR short-term 300 bps, UVR long-term 100 bps, USD short-term 300 bps, USD long-term 150 bps, and other shocks depending on the significant currency.

●

Short-term upward shock: COP short-term 500 bps, UVR short-term 300 bps, USD short-term 300 bps, and other shocks depending on the significant currency.

●

Short-term downward shock: COP short-term 500 bps, UVR short-term 300 bps, USD short-term 300 bps, and other shocks depending on the significant currency.

Individual results:

Below are the results of the Delta EVE and Delta NIM measurements as of December 31, 2025 and 2024:


		At December 31, 2025
		Maximum Delta NIM	Maximum Delta EVE		Delta EVE / CET1+AT1
		(in Ps)	(in Ps)		(in percentages)
Banco de Bogotá		(704,381)	(1,598,433)		11.01
Banco de Occidente		(632,679)	(341,331)		7.22
Banco Popular		(351,902)	(362,219)		18.06
Banco AV Villas		(197,711)	(155,061)		12.52


		At December 31, 2024
		Maximum Delta NIM	Maximum Delta EVE		Delta EVE / CET1+AT1
		(in Ps)	(in Ps)		(in percentages)
Banco de Bogotá		(634,544)	(1,216,132)		8.57
Banco de Occidente		(555,733)	(173,433)		5.95
Banco Popular		(328,276)	(408,513)		21.00
Banco AV Villas		(139,938)	(118,104)		9.42

As of December 31, 2025, Banco de Bogotá, Banco de Occidente and Banco AV Villas maintained their Delta EVE percentages below the threshold established for outlier tests. As of December 31, 2025, Banco Popular exceeded the 15% reference established in the regulation and, in compliance with regulatory requirements, submitted the corresponding adjustment plan to the Superintendency of Finance.

Consolidated results:

Below are the results of the Delta EVE and Delta NIM measurements as of December 31, 2025:


		At December 31, 2025
		Maximum Delta NIM	Maximum Delta EVE		Delta EVE / CET1+AT1
		(in Ps)	(in Ps)		(in percentages)
Banco de Bogotá		(707,641)	(1,654,667)		10.82
Banco de Occidente		(662,769)	(361,923)		6.58

As of December 31, 2025, Banco de Bogotá and Banco de Occidente maintained their Delta EVE percentages below the threshold established for outlier tests. In the case of Banco Popular and Banco AV Villas, since they do not have subsidiaries with a banking book, they are exempt from reporting consolidated information.

The management of interest rate risk in Grupo Aval's banks is structured with strong governance, led by the Board of Directors, which approves policies and limits, and supported by the Risk Committee and the ALCO Committee, which oversee the risk profile and strategies. The risk area develops methodologies and models to measure, monitor, and evaluate risk, while the treasury analyzes and projects interest rate risk and proposes hedging measures. Internal audit conducts independent evaluations of the risk system.

Grupo Aval's banks identify positions affected by interest rate risk, including assets, liabilities, and derivatives, and analyze their impact. For measurement, they calculate the impact on Net Interest Margin (NIM) and Economic Value of Equity (EVE) under regulatory scenarios and perform sensitivity analyses. Stress tests are conducted based on interest rate movements, and limits and alerts are established to control risk. Monitoring is carried out through periodic reports to the Board of Directors and other committees, ensuring effective risk management.

Results of NIM and EVE Shocks

The following section presents the results of the shocks applied to the EVE and NIM metrics as of December 31, 2025, and December 31, 2024, for individual results. Regarding the consolidated information, the results are presented only as of December 31, 2025:

Individual Results


		At December 31, 2025
		Parallel up	Parallel down		Steepener		Flattener	Short rate up	Short rate down

		(in Ps)
Banco de Bogotá		(1,598,433)	640,311		(92,600)		(749,886)	(1,005,023)	244,956
Banco de Occidente		(341,331)	(95,121)		109,053		(259,220)	(255,114)	3,285
Banco Popular		(362,219)	183,092		96,296		(145,824)	(266,231)	169,429
Banco AV Villas		(155,062)	13,969		38,056		(110,853)	(114,476)	38,071


		At December 31, 2024
		Parallel up	Parallel down		Steepener		Flattener	Short rate up	Short rate down

		(in Ps)
Banco de Bogotá		(1,216,132)	311,377		133,630		(657,975)	(692,773)	135,650
Banco de Occidente		(173,433)	(268,506)		130,669		(274,802)	(135,435)	67,438
Banco Popular		(408,513)	126,470		64,031		(199,153)	(255,127)	83,960
Banco AV Villas		(73,388)	(44,814)		53,457		(118,104)	(51,821)	9,886

Consolidated Results

Consolidated results are presented only for Banco de Bogotá and Banco de Occidente, as they are the only financial institutions with subsidiaries that have a defined Banking Book, in accordance with regulatory provisions.


		At December 31, 2025
		Parallel up	Parallel down		Steepener		Flattener	Short rate up	Short rate down

		(in Ps)
Banco de Bogotá		(1,654,667)	704,940		(93,334)		(761,522)	(1,037,879)	275,954
Banco de Occidente		(361,923)	(48,693)		93,238		(240,949)	(252,959)	(3,693)

In the case of Banco Popular and Banco AV Villas, since they do not have subsidiaries with a banking book, they are exempt from reporting consolidated information.

4.2.5 Interest Rate Risk – Sensitivity of Grupo Aval’s Consolidated Balance Sheet

Non-trading instruments consist primarily of loans and deposits. The net interest margin of our financial subsidiaries may be affected by changes in interest rates. Losses can result from unexpected movements in interest rates. For this reason, our financial subsidiaries monitor the interest rate risk daily and set limits on asset and liability mismatches.

Grupo Aval´s financial subsidiaries monitor their interest rate risk daily and set limits to repricing mismatches between assets and liabilities. They analyze their interest rate exposure in a dynamic way. Scenario modelling considers renewal of existing positions, financing alternatives, and hedges. Considering these scenarios, the financial subsidiaries calculate the profit and loss impact of changes in interest rates.

The following table shows interest rates exposure of non-interest-bearing and interest-bearing for financial assets and liabilities by maturity bucket for our financial subsidiaries at December 31, 2025 and 2024. In this table, fixed rate instruments are classified according to their maturity date and floating rate instruments are classified according to their repricing date:

December 31,2025


		Less than			From one to			From six to			More than a			Non-
Assets ⁽¹⁾		one month			six months			twelve months			year			interest			Total
Cash and cash equivalents		Ps.	6,947,229		Ps.	—		Ps.	—		Ps.	—		Ps.	12,407,481		Ps.	19,354,710
Trading investments in debt securities			313,342			857,713			917,811			15,493,978			—			17,582,844
Investments in debt securities at FVOCI			422,683			1,947,537			2,422,508			23,663,229			—			28,455,957
Investments in debt securities at amortized cost			941,587			2,523,556			3,776,864			1,963,450			—			9,205,457
Trade receivable at FVTPL			—			—			—			2,635,437			—			2,635,437
Commercial loans			1,275,910			88,802,542			2,343,572			15,886,960			—			108,308,984
Consumer loans			231,208			2,875,339			1,510,240			55,839,426			—			60,456,213
Mortgages loans			278,631			286,563			11,248			21,535,268			—			22,111,710
Microcredit loans			891			24			—			605			—			1,520
Interbank and overnight funds			1,767,275			10,241			—			—			—			1,777,516
Trade receivable			24,683			787			182			1,926,393			20,264,116			22,216,161
Total Assets		Ps.	12,203,439		Ps.	97,304,302		Ps.	10,982,425		Ps.	138,944,746		Ps.	32,671,597		Ps.	292,106,509
															—

		Less than			From one to			From six to			More than a			Non-
Liabilities ⁽²⁾		one month			six months			twelve months			year			interest			Total
Checking accounts		Ps.	6,384,604		Ps.	—		Ps.	—		Ps.	—		Ps.	17,213,631		Ps.	23,598,235
Saving deposits			88,238,541			—			—			—			—			88,238,541
Time deposits			10,784,108			45,291,746			20,894,887			18,135,176			—			95,105,917
Other deposits			14,699			27,924			—			—			419,922			462,545
Interbank and overnight funds			22,444,060			208,589			2,776			—			—			22,655,425
Borrowing from banks and others			2,609,903			6,823,584			6,898,316			8,227,372			—			24,559,175
Long-term debt			—			5,346,412			1,085,204			15,025,370			—			21,456,986
Total Liabilities		Ps.	130,475,915		Ps.	57,698,255		Ps.	28,881,183		Ps.	41,387,918		Ps.	17,633,553		Ps.	276,076,824

December 31,2024


		Less than			From one to			From six to			More than a			Non-
Assets		one month			six months			twelve months			year			interest			Total
Cash and cash equivalents		Ps.	6,669,978		Ps.	—		Ps.			Ps.	—		Ps.	10,328,881		Ps.	16,998,859
Trading investments in debt securities			64,537			143,911			313,373			11,415,593			—			11,937,414
Investments in debt securities mandatorily at FVTPL			—			—			1,425			—			—			1,425
Investments in debt securities at FVOCI			373,026			1,495,003			2,726,862			22,455,307			—			27,050,198
Investments in debt securities at amortized cost			1,120,442			3,339,892			3,707,096			2,540,937			—			10,708,367
Trade receivable at FVTPL			—			—			—			4,181,835			—			4,181,835
Commercial loans			15,313,556			66,132,059			6,400,419			27,568,609			—			115,414,643
Consumer loans			4,821,574			3,357,049			2,743,970			51,053,732			—			61,976,325
Mortgages loans			3,837,007			184,710			123,247			17,890,763			—			22,035,727
Microcredit loans			2,199			457			295			1,424			—			4,375
Interbank and overnight funds			704,516			539			—			—			—			705,055
Trade receivable			14,665			6,589			189			2,230,108			21,886,987			24,138,538
Total Assets		Ps.	32,921,500		Ps.	74,660,209		Ps.	16,016,876		Ps.	139,338,308		Ps.	32,215,868		Ps.	295,152,761

		Less than			From one to			From six to			More than a			Non-
Liabilities		one month			six months			twelve months			year			interest			Total
Checking accounts		Ps.	6,064,076		Ps.	—		Ps.	—		Ps.	—		Ps.	18,515,460		Ps.	24,579,536
Saving deposits			79,614,904			—			—			—			—			79,614,904
Time deposits			6,739,476			50,866,874			23,336,940			15,386,537			—			96,329,827
Other deposits			13,359			108,392			—			—			226,159			347,910
Interbank and overnight funds			17,651,017			527,638			331,114			—			—			18,509,769
Borrowing from banks and others			3,377,387			10,628,700			3,790,469			10,301,603			—			28,098,159
Long-term debt			157,427			4,855,835			286,286			20,916,299			—			26,215,847
Total Liabilities		Ps.	113,617,646		Ps.	66,987,439		Ps.	27,744,809		Ps.	46,604,439		Ps.	18,741,619		Ps.	273,695,952

As part of their interest rate risk management process, our financial subsidiaries analyze the interest rate mismatches between their interest-earning assets and their interest-earning liabilities. This sensitivity analysis, based on hypothetical changes, assumes that the composition of Grupo Aval´s statement of financial position remains constant over the period being measured.

Based on the financial statement as of December 31, 2025, a linear accounting sensitivity exercise to interest rate variations is carried out, assuming a constant market situation, without incorporating the existing effects on financial assets and liabilities resulting from discretionary decisions of clients and changes that may occur in macroeconomic fundamentals. Thus, if market interest rates were to increase by 100 basis points, without considering the maturity of the instruments or the repricing periods but only the balance as of the cut-off date, and assuming there is no asymmetric movement in the yield curves, the profit for the year would have been Ps. 83,572, which represents 1.10% of total net interest income as of December 31, 2025, and Ps. 33,715, which represented 0.46% of total net interest income as of December 31, 2024, mainly higher as a result of higher interest income on variable interest assets offset by higher interest expenses on variable interest liabilities and lower fair values of investments at fair value through profit or loss, due to the proportion of assets indexed to variable rates being higher than liabilities indexed to variable rates. Other comprehensive income in equity would have been Ps. 835,812 as of December 31, 2025, and Ps. 868,462 as of December 31, 2024, mainly lower because of a decrease in the fair values of fixed-rate financial assets classified as fair value through OCI.

The following is a breakdown of non-interest-bearing and interest-bearing assets and liabilities by interest rate type and by maturity, as at December 31, 2025 and 2024.

December 31,2025


		Under one year						Over one year						Non-
Assets ⁽¹⁾		Variable			Fixed			Variable			Fixed			interest			Total
Cash and cash equivalents		Ps.	2,843,399		Ps.	4,103,830		Ps.	—		Ps.	—		Ps.	12,407,481		Ps.	19,354,710
Trading investments in debt securities			169,009			1,919,857			131,985			15,361,993			—			17,582,844
Investments in debt securities at FVOCI			231,040			4,561,688			831,844			22,831,385			—			28,455,957
Investments in debt securities at amortized cost			5,351,209			1,890,797			—			1,963,451			—			9,205,457
Trade receivable at FVTPL			—			—			2,635,437			—			—			2,635,437
Commercial loans			38,255,304			11,022,924			50,293,877			8,736,879			—			108,308,984
Consumer loans			683,307			10,523,849			1,648,975			47,600,082			—			60,456,213
Mortgages loans			36,143			1,083,682			512,333			20,479,552			—			22,111,710
Microcredit loans			802			—			114			604			—			1,520
Interbank and overnight funds			—			1,777,516			—			—			—			1,777,516
Trade receivable			25,652			—			401,057			1,525,336			20,264,116			22,216,161
Total Assets		Ps.	47,595,865		Ps.	36,884,143		Ps.	56,455,622		Ps.	118,499,282		Ps.	32,671,597		Ps.	292,106,509
															—
		Under one year							Over one year					Non-
Liabilities ⁽²⁾		Variable			Fixed			Variable			Fixed			interest			Total
Checking accounts		Ps.	392,631		Ps.	5,991,973		Ps.	—		Ps.	—		Ps.	17,213,631		Ps.	23,598,235
Saving deposits			11,243,338			76,995,203			—			—			—			88,238,541
Time deposits			23,127,676			54,048,625			5,740,557			12,189,059			—			95,105,917
Other deposits			13,082			29,541			—			—			419,922			462,545
Interbank and overnight funds			255,945			22,399,480			—			—			—			22,655,425
Borrowing from banks and others			10,323,838			5,459,051			3,518,694			5,257,592			—			24,559,175
Long-term debt			2,151,022			4,280,592			5,638,943			9,386,429			—			21,456,986
Total Liabilities		Ps.	47,507,532		Ps.	169,204,465		Ps.	14,898,194		Ps.	26,833,080		Ps.	17,633,553		Ps.	276,076,824

December 31,2024


		Under one year						Over one year						Non-
Assets		Variable			Fixed			Variable			Fixed			interest			Total
Cash and cash equivalents		Ps.	767,956		Ps.	5,902,022		Ps.	—		Ps.	—		Ps.	10,328,881		Ps.	16,998,859
Trading investments in debt securities			39,959			481,862			267,185			11,148,408			—			11,937,414
Investments in debt securities mandatorily at FVTPL			—			1,425			—			—			—			1,425
Investments in debt securities at FVOCI			18,733			4,576,159			949,667			21,505,639			—			27,050,198
Investments in debt securities at amortized cost			5,563,208			2,604,222			94,850			2,446,087			—			10,708,367
Trade receivable at FVTPL			—			—			4,181,835			—			—			4,181,835
Commercial loans			47,408,803			12,085,311			46,834,101			9,086,428			—			115,414,643
Consumer loans			828,680			10,058,687			5,666,008			45,422,950			—			61,976,325
Mortgages loans			58,686			931,590			4,022,386			17,023,065			—			22,035,727
Microcredit loans			1,342			2,059			151			823			—			4,375
Interbank and overnight funds			—			705,055			—			—			—			705,055
Trade receivable			15,598			5,845			356,931			1,873,177			21,886,987			24,138,538
Total Assets		Ps.	54,702,965		Ps.	37,354,237		Ps.	62,373,114		Ps.	108,506,577		Ps.	32,215,868		Ps.	295,152,761

		Under one year						Over one year						Non-
Liabilities		Variable			Fixed			Variable			Fixed			interest			Total
Checking accounts		Ps.	642,651		Ps.	5,421,425		Ps.	—		Ps.	—		Ps.	18,515,460		Ps.	24,579,536
Saving deposits			9,509,067			70,105,837			—			—			—			79,614,904
Time deposits			11,243,745			67,994,677			4,210,357			12,881,048			—			96,329,827
Other deposits			11,728			110,023			—			—			226,159			347,910
Interbank and overnight funds			336,770			18,172,999			—			—			—			18,509,769
Borrowing from banks and others			8,349,490			5,952,723			8,188,874			5,607,072			—			28,098,159
Long-term debt			810,630			905,693			7,368,553			17,130,971			—			26,215,847
Total Liabilities		Ps.	30,904,081		Ps.	168,663,377		Ps.	19,767,784		Ps.	35,619,091		Ps.	18,741,619		Ps.	273,695,952

Disclosure of risk management, liquidity risk [text block]

4.3 Liquidity Risk

Liquidity risk management has always been a basic element of Grupo Aval’s business strategy and a fundamental cornerstone, together with capital, on which the strength of its balance sheet rests. Liquidity risk is related to the inability of Grupo Aval´s subsidiaries to fulfill their obligations with customers, financial market counterparties, lenders, suppliers, authorities or other stakeholders at any given moment, in any currency and in any location.

Structural liquidity management aims to finance the recurring nature of a company’s activities under optimal terms of time and cost, avoiding taking unwanted liquidity risks. At Grupo Aval, the financing and liquidity model is decentralized and based on autonomous subsidiaries that are responsible for covering their own liquidity needs. Therefore, each entity reviews its available resources on a daily basis in order to control its liquidity risk.

The financial subsidiaries of Grupo Aval are responsible for complying with the regulatory liquidity requirements, as well as meeting the obligations arising from their current and future activity. In consequence, they will either take deposits from their customers, or by resorting to the wholesale markets where they operate. Grupo Aval’s financial subsidiaries have a strong capacity as well as to raise funds in the wholesale markets.

Financial subsidiaries comply with the requirements for liquidity risk management of the jurisdictions in which they operate. They define policies that govern the functions of identification, measurement, control and monitoring required to manage daily liquidity requirements, comply with minimum liquidity buffers and establish liquidity contingency plans to deal with any unexpected situation.

Financial subsidiaries controlled by Grupo Aval, in Colombia, are required to maintain adequate liquidity positions based on the Superintendency of Finance’s liquidity parameters, using a short-term liquidity index (Indicador de Riesgo de Liquidez in Spanish

language), or “IRL,” that measures liquidity for different time horizons from 1 to 90 days. This index is defined as the difference between adjusted liquid assets and net liquidity requirements.

•

Liquid assets include total debt securities adjusted by market liquidity and exchange rate, excluding investment securities at amortized cost different from mandatory investments, Central Bank deposits and available cash.

•

Net liquidity requirements are the difference between expected contractual asset and contractual and non-contractual liability cash flows. Cash flows from past due loans are not included in this calculation.

During 2020, as part of its convergence towards Basel III standards, the Superintendency of Finance incorporates the segmentation by type of deposits in the calculation of non-contractual liability cash flows. The methodology segments saving deposits in eight categories, according with their balance and the type of customer, then calculates the run-off rate for each category and finally multiplies both to determine the non-contractual reserve.

Grupo Aval´s financial subsidiaries assess the volatility of deposits, debt levels, the asset and liability structure, the liquidity of different asset types, the availability of lines of credit and the effectiveness of asset and liability management. The objective is to have adequate liquidity to manage possible stress scenarios.

The quantification of appropriate money market funding levels is an integral part of the liquidity measurement carried out by each entity. Based on statistical analysis, primary and secondary sources of liquidity are identified in order to ensure funding stability and diversification, and to minimize concentration.

Financial subsidiaries in Colombia must maintain cash on hand and in Central Banks deposits in order to comply with reserve requirements. The calculation of the reserve requirement is based on the daily average of the different types of deposits every two weeks.

On August 30, 2024, the Board of Directors of the Central Bank of Colombia (Banco de la República) issued External Resolution No. 3, which reduces the reserve requirements as follows:

•

Reduction of one percentage point in the reserve requirement for liabilities currently subject to an 8% reserve ratio (primarily checking accounts and savings accounts). As a result, the reserve requirement for these liabilities will decrease from 8% to 7%.

•

Reduction of one percentage point in the reserve requirement for liabilities currently subject to a 3.5% reserve ratio (primarily time deposits with a term up to 18 months). Consequently, the reserve requirement for these liabilities will decrease from 3.5% to 2.5%.

There are no reserve requirements for our subsidiaries located in Panamá because there is no Central Bank to regulate such requirements.

The following table presents liquid assets as of the cut-off date and their depletion for each of the time horizons established in the regulatory liquidity risk methodology (1 to 7 days, 1 to 30 days and 31 to 90 days), based on separate figures of our financial subsidiaries in Colombia at December 31, 2025 and 2024:

December 31, 2025


		Liquid assets
		available at the end						From 31 to 90
Bank		of the year ⁽¹⁾		From 1 to 7 days ⁽²⁾		From 1 to 30 days ⁽²⁾		days ⁽²⁾
Banco Bogotá S.A.	Ps.	16,766,645		14,103,526		5,290,233		(17,219,591)
Banco de Occidente S.A.		11,509,695		7,654,716		4,681,592		(10,698,827)
Banco AV Villas S.A.		3,058,631		2,656,389		1,314,672		(3,211,668)
Banco Popular S.A.		5,572,720		4,994,515		1,573,415		(6,216,132)
Corficolombiana S.A.		2,567,533		1,608,683		809,740		(472,992)

December 31, 2024


		Liquid assets
		available at the end						From 31 to 90
Bank		of the year ⁽¹⁾		From 1 to 7 days ⁽²⁾		From 1 to 30 days ⁽²⁾		days ⁽²⁾
Banco Bogotá S.A.	Ps.	13,469,768	Ps.	10,953,748	Ps.	2,928,936	Ps.	(16,891,633)
Banco de Occidente S.A.		9,284,616		6,461,637		2,946,224		(11,199,262)
Banco Popular S.A.		4,030,595		3,580,936		893,612		(5,667,658)

Banco AV Villas S.A.		2,145,763		1,665,301		687,963		(2,909,334)
Corficolombiana S.A.		1,908,014		902,572		560,871		(649,409)

(1)

Liquid assets are the sum of assets that are easily convertible into cash. Fixed income investments at amortized cost and financial investments pledged as collateral or subject to any other type of encumbrance, preventive measure or of any nature, that prevent their free assignment or transfer, as well as those that have been transferred under repurchase agreements, simultaneous or temporary transfer of securities are excluded. Liquid assets are measured at fair value (market prices on the evaluation date).

(2)

This amount is the remaining value of liquid assets in the specified time period, or the IRL, which is calculated as the difference between liquid assets and the liquidity requirement. The liquidity requirement is the difference between contractual cash inflows and contractual and non-contractual cash outflows during the period according to the IRL methodology.

The following tables show the individual IRL Ratio as of December 31, 2025, and 2024 for each of our banks in Colombia and Corficolombiana, expressed in Colombian pesos and as a percentage:

 

(in Ps)

Banco de Bogotá

 

Banco de Occidente

 

Banco Popular

 

Banco AV Villas

 

Corficolombiana

 

2025

 

2024

 

2025

 

2024

 

2025

 

2024

 

2025

 

2024

 

2025

 

2024

IRL – 7 days

14,104

10,954

6,122

5,028

4,995

3,581

2,656

1,665

1,609

903

IRL – 30 days

5,290

2,929

3,375

1,814

1,573

894

1,315

688

810

561

 

(in percentages)

 

Banco de Bogotá

 

Banco de Occidente

 

Banco Popular

 

Banco AV Villas

 

Corficolombiana

 

2025

 

2024

 

2025

 

2024

 

2025

 

2024

 

2025

 

2024

 

2025

 

2024

IRL – 7 days

630

535

262

289

964

896

760

447

268

190

IRL – 30 days

146

128

152

131

139

129

175

147

146

142

Supervised entities are required to calculate and report to the SFC on a weekly basis an indicator of short-term liquidity risk. The IRL is calculated in periods of 7 and 30 days and must be at least 100 percent. During 2025, Grupo Aval's Colombian banks met the minimum regulatory requirement.

The liquidity calculations described above assume normal liquidity conditions, according to the contractual flows and historical experience of each of the financial subsidiaries. For extreme liquidity events caused by unusual deposit withdrawals, the financial subsidiaries have contingency plans that include available credit lines with other financial institutions and access to special lines of credit with Colombia´s Central Bank, in accordance with current regulations. These lines of credit are granted when required, and are collateralized by Colombian government securities or by a portfolio of high-quality loans, as specified in the Central Bank regulations. Grupo Aval´s financial subsidiaries did not access the Central Bank special lines of credit during the years ended at December 31, 2025 and 2024.

The banks in each country are responsible for their liquidity position on a stand-alone basis. They have access to funding mechanisms with their central banks (which allow them to use their portfolios of marketable securities as collateral in money market schemes, as well as loan portfolio rediscounting mechanisms), funding through short-term credit lines offered by correspondent banks, and financing provided by multilateral organizations.

The following breakdown shows the contractual undiscounted cash flows of the financial assets and liabilities including contractual interest receivable and payable at December 31, 2025 and 2024.

December 31, 2025


		Less than			From one to six			From six to twelve			More than
Assets ⁽¹⁾		one month			months			months			a year			Total
Cash and cash equivalents		Ps.	19,354,710		Ps.	—		Ps.	—		Ps.	—		Ps.	19,354,710
Trading investments in debt securities			2,137,023			1,778,618			3,413,469			10,291,572			17,620,682
Investments in debt securities at FVOCI			452,819			1,799,620			2,192,120			28,678,618			33,123,177
Investments in debt securities at amortized cost			1,246,317			2,298,604			4,657,753			1,963,450			10,166,124
Commercial loans			10,257,908			30,969,302			16,646,031			72,688,388			130,561,629
Consumer loans			2,034,248			8,046,766			8,544,496			68,901,971			87,527,481
Mortgages loans			544,230			1,244,414			1,390,669			39,963,613			43,142,926
Microcredit loans			226			529			169			956			1,880
Interbank and overnight funds			1,773,392			4,125			—			—			1,777,517
Trading derivatives			742,356			800,086			267,223			727,255			2,536,920

Hedging derivatives			2,903			27,728			44,577			207,077			282,285
Trade receivable			2,014,113			328,378			19,339			22,489,768			24,851,598
Total Assets		Ps.	40,560,245		Ps.	47,298,170		Ps.	37,175,846		Ps.	245,912,668		Ps.	370,946,929

		Less than			From one to six			From six to twelve			More than
Liabilities ⁽²⁾		one month			months			months			a year			Total
Checking accounts		Ps.	23,598,235		Ps.	—		Ps.	—		Ps.	—		Ps.	23,598,235
Saving deposits			88,238,541			—			—			—			88,238,541
Time Deposits			12,207,927			44,796,477			23,537,597			21,155,408			101,697,409
Other deposits			432,549			29,996			—			—			462,545
Interbank and overnight funds			22,456,432			208,589			2,833			—			22,667,854
Borrowing from banks and others			1,197,304			6,658,939			7,630,961			13,470,640			28,957,844
Long-term debt			—			4,692,748			1,191,133			18,543,581			24,427,462
Trading derivatives			582,011			835,227			438,932			776,212			2,632,382
Hedging derivatives			34			107,001			21,434			6,246			134,715
Total Liabilities		Ps.	148,713,033		Ps.	57,328,977		Ps.	32,822,890		Ps.	53,952,087		Ps.	292,816,987

		Less than one			From one to			From six to			More than a
Commitments Loans		month			six months			twelve months			year			Total
Guarantees		Ps.	252,734		Ps.	372,873		Ps.	1,598,026		Ps.	33,874		Ps.	2,257,507
Standby letters of credit			7,416			87,122			294,149			12,200			400,887
Overdraft facility			2,271,247			—			—			—			2,271,247
Standby credit card facility			6,745,525			327,468			857,444			6,916,653			14,847,090
Undrawn approved loans			516,842			309,576			3,177,938			57,481			4,061,837
Total Commitments Loans		Ps.	9,793,764		Ps.	1,097,039		Ps.	5,927,557		Ps.	7,020,208		Ps.	23,838,568

December 31, 2024


		Less than one			From one to			From six to			More than a
Assets		month			six months			twelve months			year			Total
Cash and cash equivalents		Ps.	16,998,859		Ps.	—		Ps.			Ps.	—		Ps.	16,998,859
Trading investments in debt securities			300,292			305,488			435,694			8,422,819			9,464,293
Investments in debt securities at FVOCI			401,816			1,811,929			3,252,189			24,381,983			29,847,917
Investments in debt securities at amortized cost			940,289			2,456,711			3,203,905			2,662,693			9,263,598
Commercial loans			14,582,605			31,222,986			18,300,276			71,697,670			135,803,537
Consumer loans			2,374,330			8,120,876			8,394,853			69,138,663			88,028,722
Mortgages loans			372,088			1,150,098			1,292,659			39,222,723			42,037,568
Microcredit loans			1,226			625			265			2,051			4,167
Interbank and overnight funds			703,330			1,799			—			—			705,129
Trading derivatives			376,454			325,466			144,525			170,457			1,016,902
Hedging derivatives			3,054			53,560			21,102			8,476			86,192
Trade receivable			2,864,204			318,938			4,548			25,143,889			28,331,579
Total Assets		Ps.	39,918,547		Ps.	45,768,476		Ps.	35,050,016		Ps.	240,851,424		Ps.	361,588,463

		Less than one			From one to			From six to			More than a
Liabilities		month			six months			twelve months			year			Total
Checking accounts		Ps.	24,579,536		Ps.	—		Ps.	—		Ps.	—		Ps.	24,579,536
Saving deposits			79,614,904			—			—			—			79,614,904
Time Deposits			9,186,183			49,090,487			25,405,518			18,863,479			102,545,667
Other deposits			235,111			111,456			—			1,343			347,910
Interbank and overnight funds			17,666,654			538,143			332,010			—			18,536,807
Borrowing from banks and others			1,995,053			10,510,170			4,796,438			13,359,839			30,661,500
Long-term debt			395,469			1,156,876			886,593			26,947,429			29,386,367
Trading derivatives			308,653			380,271			95,804			240,701			1,025,429
Hedging derivatives			1,369			8			3,220			4,180			8,777
Total Liabilities		Ps.	133,982,932		Ps.	61,787,411		Ps.	31,519,583		Ps.	59,416,971		Ps.	286,706,897

		Less than one			From one to			From six to			More than a
Commitments Loans		month			six months			twelve months			year			Total
Guarantees		Ps.	48,394		Ps.	360,652		Ps.	1,064,744		Ps.	1,629,771		Ps.	3,103,561
Standby letters of credit			26,546			145,194			195,627			16,905			384,272
Overdraft facility			1,861,943			26,281			32,113			341,120			2,261,457
Standby credit card facility			6,192,403			355,995			660,752			5,724,232			12,933,382
Undrawn approved loans			394,475			113,970			2,611,051			201,208			3,320,704
Total Commitments Loans		Ps.	8,523,761		Ps.	1,002,092		Ps.	4,564,287		Ps.	7,913,236		Ps.	22,003,376

Disclosure of risk management, regulatory capital management [text block]

4.4 Regulatory capital management

Decree 2555 of 2010 (as modified by Decree 1771 of 2012, Decree 1648 of 2014, Decree 2392 of 2015, Decrees 1477 of 2018 and 1421 of 2019) sets forth capital adequacy requirements for Colombian credit institutions. Technical capital for Colombian credit institutions consists of the sum of total Core Equity Tier I (CET1 or patrimonio básico ordinario), Additional Tier I capital (AT1 or patrimonio básico adicional), and Tier II capital (Tier II or patrimonio adicional). Tier I capital consist of the sum of CET1 (patrimonio básico ordinario) and AT1 (patrimonio básico adicional). Tier I and Tier II, as defined herein, may differ to the manner in which these terms are used in other jurisdictions.

Pursuant to Decrees 1477 of 2018 and 1421 of 2019 Basel III principles were introduced to estimate adequate capital in credit institutions as follows:

●

Total solvency ratio is defined as the value of the technical capital (CET1, AT1 and Tier II) calculated under the terms of the Decree 1477 of 2018 and the Decree 1421 of 2019, divided by risk-weighted assets by level of credit, market and operational risk, at a minimum of 9%. Pursuant to Decree 2555 of 2010 (as amended), the Superintendency of Finance must grant prior approval of the eligibility of a debt, equity or hybrid instrument in order to be classified as AT1;

●

A minimum CET1 of 4.5%;

●

A minimum Tier I of 6.0%;

●

A capital conservation buffer of 1.5% consisting of CET1;

●

A systemic risk buffer of 1.0% for systemically important financial institutions (SIFIS) consisting of CET1; and

●

In addition, these Decrees established a minimum leverage ratio of 3%.

Banco de Bogotá is considered a systemically important financial institution, according to Carta Circular 68 of November 27, 2025, Carta Circular 74 of November 28, 2024 and Carta Circular 70 of November 23, 2023, issued by the Superintendency of Finance, and therefore had to comply with the systemic buffer (explained above).

Furthermore, according to Carta Circular 68 of November 27, 2025 and Carta Circular 74 of November 28, 2024, issued by the Superintendency of Finance, Banco de Occidente is also considered a systemically important financial institution. At December 31, 2025 the systemic importance buffer applicable to Banco de Occidente was 0.6%, as it was allowed a two-year transition period to comply with the 1.0% systemic buffer, which must be fully implemented by November 2026.

Total solvency ratio for pension and severance fund managers, fiduciary companies and stockbrokers is defined as the value of the regulatory capital (CET1, AT1 and Tier II) calculated under the terms of Decree 175 of 2022, divided by risk-weighted assets by level of credit, market and operational risk, at a minimum of 9%.

In addition to compliance with minimum regulatory capital requirements, Grupo Aval’s entities aim to maintain capital positions that foster investor, creditor, and market confidence and to sustain future growth of their respective businesses. The capital allocation decision guards that there is balance between a more aggressive structure that can deliver higher returns on equity and a more conservative approach that encourages excess capitalization. Capital allocation decisions also considers each subsidiary’s long-term strategic objectives.

As of December 31, 2025, and 2024, all of Grupo Aval´s individually regulated operations have complied with the minimum regulatory capital requirements.

The following tables show the separate and consolidated (where applicable) capitalization information of our main direct and indirect subsidiaries. Consolidated solvency only applies to Banco de Bogotá, Banco de Occidente and Banco Popular. The consolidated solvency for Banco Popular and subsidiaries incorporates Corficolombiana. However, taking into account the materiality of Corficolombiana in Banco Popular’s figures, Corficolombiana is presented separately in the following section.

Banco de Bogotá S.A.


		Separate basis				Consolidated basis
		At December 31,				At December 31,
		2025		2024		2025		2024


Subscribed and paid-in capital	Ps.	3,553	Ps.	3,553	Ps.	3,553	Ps.	3,553
Reserves and retained earnings		15,488,196		14,980,050		15,896,788		15,426,827
Other comprehensive income		(150,051)		246,238		(21,063)		244,407
Net income for the period		1,259,998		1,128,549		1,270,587		1,090,178
Non-controlling interests		—		—		—		—
Deductions:
Unconsolidated financial sector investments		—		—		—		—
Goodwill and other intangibles		(1,460,905)		(1,388,211)		(1,506,967)		(1,709,972)
Deferred tax assets		(694,849)		(783,110)		(347,120)		(672,462)
Other		—		—		(1,431)		(1,431)
CET1	Ps.	14,445,943	Ps.	14,187,069	Ps.	15,294,347	Ps.	14,381,099
Hybrid instruments recognized as additional primary capital		—		—		—		—
Other		—		—		—		—
AT1		—		—		—		—
Tier I	Ps.	14,445,943	Ps.	14,187,069	Ps.	15,294,347	Ps.	14,381,099

Subordinated instruments		1,687,813		2,459,094		1,687,813		2,459,094
Plus/minus others		132,000		134,586		0		—
Tier II capital	Ps.	1,819,813	Ps.	2,593,680	Ps.	1,687,813	Ps.	2,459,094
Other deductions from technical capital		—		—		—		3,553
Technical capital	Ps.	16,265,756	Ps.	16,780,749	Ps.	16,982,160	Ps.	16,840,193
Risk-weighted assets		80,428,512		81,152,552		98,501,784		97,961,017
Market risk		185,383		153,522		311,408		318,203
Market risk exposure ⁽¹⁾		2,059,807		1,705,799		3,460,094		3,535,594
Operational risk		683,524		565,377		784,011		664,410
Operational risk exposure ⁽¹⁾		7,594,709		6,281,962		8,711,230		7,382,337
Risk-weighted assets including regulatory market risk and operational risk	Ps.	90,083,028	Ps.	89,140,313	Ps.	110,673,108	Ps.	108,878,948
CET1 solvency ratio		16.04%		15.92%		13.82%		13.21%
AT1 contribution to solvency ratio		0.00%		0.00%		0.00%		0.00%
Tier 1 capital solvency ratio		16.04%		15.92%		13.82%		13.21%
Tier II contribution to solvency ratio		2.02%		2.91%		1.53%		2.26%
Total solvency ratio ⁽²⁾		18.06%		18.83%		15.34%		15.47%

Capital measure	Ps.	14,445,943	Ps.	14,187,069	Ps.	15,294,347	Ps.	14,381,099
Exposure measure		138,326,503		129,644,773		158,485,219		154,516,917
Leverage ratio		10.44%		10.94%		9.65%		9.31%

⁽¹⁾ Regulatory value at risk consists of value at risk multiplied by (100/9) as required by the Superintendency of Finance. Regulatory operational risk consists of operational risk multiplied by (100/9) as required by the Superintendency of Finance.

⁽²⁾ Solvency ratio is calculated as technical capital to risk-weighted assets, including regulatory value at risk and regulatory operational risk.

Banco de Occidente S.A.


		Separate basis				Consolidated basis
		At December 31,				At December 31,
		2025		2024		2025		2024


Subscribed and paid-in capital	Ps.	4,677	Ps.	4,677	Ps.	4,677	Ps.	4,677
Reserves and retained earnings		5,242,618		4,996,740		5,477,955		5,253,452
Other comprehensive income		(52,984)		53,594		152,485		209,136
Net income for the period		533,656		494,992		574,590		473,554
Non-controlling interests		—		—		19,155		16,902
Deductions:
Unconsolidated financial sector investments		—		—		—		—
Goodwill and other intangibles		(761,334)		(693,741)		(726,124)		(651,630)
Deferred tax assets		(235,063)		(233,646)		—		—
Other		(2,747)		(2,743)		(2,747)		(2,743)
CET1	Ps.	4,728,823	Ps.	4,619,873	Ps.	5,499,991	Ps.	5,303,348
Hybrid instruments recognized as additional primary capital		—		—		—		—
Other		—		—		—		—
AT1		—		—		—		—
Tier I	Ps.	4,728,823	Ps.	4,619,873	Ps.	5,499,991	Ps.	5,303,348
		—		—		—		—
Subordinated instruments		1,075,171		1,357,700		1,075,171		1,357,700
Plus/minus others		38,417		30,716		—		—
Tier II capital	Ps.	1,113,588	Ps.	1,388,416	Ps.	1,075,171	Ps.	1,357,700
Other deductions from technical capital		—		—		—		—
Technical capital	Ps.	5,842,411	Ps.	6,008,289	Ps.	6,575,163	Ps.	6,661,048
Risk-weighted assets		41,765,590		40,395,605		45,511,052		44,446,464
Market risk		109,891		339,369		152,513		381,971
Market risk exposure ⁽¹⁾		1,221,006		3,770,764		1,694,594		4,244,121
Operational risk		337,993		282,931		337,127		283,565
Operational risk exposure ⁽¹⁾		3,755,476		3,143,676		3,745,856		3,150,726
Risk-weighted assets including regulatory market risk and operational risk	Ps.	46,742,072	Ps.	47,310,045	Ps.	50,951,502	Ps.	51,841,311
CET1 solvency ratio		10.12%		9.77%		10.79%		10.23%
AT1 contribution to solvency ratio		0.00%		0.00%		0.00%		0.00%
Tier 1 capital solvency ratio		10.12%		9.77%		10.79%		10.23%
Tier II contribution to solvency ratio		2.38%		2.93%		2.11%		2.62%
Total solvency ratio ⁽²⁾		12.50%		12.70%		12.90%		12.85%

Capital measure	Ps.	4,728,823	Ps.	4,619,873	Ps.	5,499,992	Ps.	5,303,348
Exposure measure		81,723,618		75,193,855		87,702,312		81,253,921
Leverage ratio		5.79%		6.14%		6.27%		6.53%

⁽²⁾ Solvency ratio is calculated as technical capital to risk-weighted assets, including regulatory value at risk and regulatory operational risk.

Banco Comercial AV Villas S.A.


		Separate basis
		At December 31,
		2025		2024


Subscribed and paid-in capital	Ps.	22,297	Ps.	22,297
Reserves and retained earnings		1,482,139		1,545,974
Other comprehensive income		74,778		123,694
Net income for the period		(52,600)		(116,277)
Non-controlling interests		—		—
Deductions:
Unconsolidated financial sector investments		—		—
Goodwill and other intangibles		(241,826)		(194,924)
Deferred tax assets		(1,817)		(10,420)
Other		(44,359)		(116,928)
CET1	Ps.	1,238,612	Ps.	1,253,416
Hybrid instruments recognized as additional primary capital		—		—
Other		176		176
AT1	Ps.	176	Ps.	176
Tier I	Ps.	1,238,788	Ps.	1,253,592

Subordinated instruments		200,000		150,000
Plus/minus others		37,373		31,568
Tier II capital	Ps.	237,373	Ps.	181,568
Other deductions from technical capital		—		—
Technical capital	Ps.	1,476,161	Ps.	1,435,160
Risk-weighted assets		11,391,828		10,473,834
Market risk		15,658		22,567
Market risk exposure ⁽¹⁾		173,975		250,741
Operational risk		121,116		102,999
Operational risk exposure ⁽¹⁾		1,345,735		1,144,438
Risk-weighted assets including regulatory market risk and operational risk	Ps.	12,911,538	Ps.	11,869,013
CET1 solvency ratio		9.59%		10.56%
AT1 contribution to solvency ratio		0.00%		0.00%
Tier 1 capital solvency ratio		9.59%		10.56%
Tier II contribution to solvency ratio		1.84%		1.53%
Total solvency ratio ⁽²⁾		11.43%		12.09%

Capital measure	Ps.	1,238,788	Ps.	1,253,592
Exposure measure		22,081,029		19,170,558
Leverage ratio		5.61%		6.54%

⁽²⁾ Solvency ratio is calculated as technical capital to risk-weighted assets, including regulatory value at risk and regulatory operational risk.

Banco Popular S.A.


		Separate basis				Consolidated basis
		At December 31,				At December 31,
		2025		2024		2025		2024


Subscribed and paid-in capital	Ps.	78,861	Ps.	77,253	Ps.	78,861	Ps.	77,253
Reserves and retained earnings		2,310,223		2,496,783		2,272,386		2,546,400
Other comprehensive income		113,637		82,992		303,895		251,899
Net income for the period		15,078		(226,699)		49,174		(314,876)
Non-controlling interests		—		—		7,280,592		6,866,755
Deductions:
Unconsolidated financial sector investments		—		—		—		—
Goodwill and other intangibles		(416,309)		(390,836)		(477,807)		(460,169)
Deferred tax assets		—		—		—		—
Other		(96,364)		(94,690)		(96,372)		(94,690)
CET1	Ps.	2,005,126	Ps.	1,944,803	Ps.	9,410,730	Ps.	8,872,572
Hybrid instruments recognized as additional primary capital		—		—		—		—
Other		—		—		—		—
AT1		—		—		—		—
Tier I	Ps.	2,005,126	Ps.	1,944,803	Ps.	9,410,730	Ps.	8,872,572

Subordinated instruments		362,384		319,316		112,384		69,316
Plus/minus others		9,421		15,349		—		—
Tier II capital	Ps.	371,805	Ps.	334,665	Ps.	112,384	Ps.	69,316
Other deductions from technical capital		—		—		(24,232)		(41,551)
Technical capital	Ps.	2,376,931	Ps.	2,279,467	Ps.	9,498,882	Ps.	8,900,337
Risk-weighted assets		16,991,036		17,069,637		37,420,685		37,339,994
Market risk		12,786		16,967		304,481		291,145
Market risk exposure ⁽¹⁾		142,064		188,523		3,383,123		3,234,940
Operational risk		148,169		144,415		358,587		414,441
Operational risk exposure ⁽¹⁾		1,646,317		1,604,616		3,984,300		4,604,901
Risk-weighted assets including regulatory market risk and operational risk		18,779,417		18,862,775		44,788,108		45,179,835
CET1 solvency ratio		10.68%		10.31%		21.01%		19.64%
AT1 contribution to solvency ratio		0.00%		0.00%		0.00%		0.00%
Tier 1 capital solvency ratio		10.68%		10.31%		21.01%		19.64%
Tier II contribution to solvency ratio		1.98%		1.77%		0.25%		0.15%
Total solvency ratio ⁽²⁾		12.66%		12.08%		21.21%		19.70%

Capital measure	Ps.	2,005,126	Ps.	1,944,803	Ps.	9,410,730	Ps.	8,872,572
Exposure measure		31,641,203		29,036,941		59,643,311		55,602,943
Leverage ratio		6.34%		6.70%		15.78%		15.96%

⁽²⁾ Solvency ratio is calculated as technical capital to risk-weighted assets, including regulatory value at risk and regulatory operational risk.

Corficolombiana S.A.


		Separate basis
		At December 31,
		2025		2024

Subscribed and paid-in capital	Ps.	3,464	Ps.	3,464
Reserves and retained earnings		12,318,266		12,016,888
Other comprehensive income		122,538		(12,237)
Net income for the period		514,748		327,654
Non-controlling interests		—		—
Deductions:		—		—
Unconsolidated financial sector investments		—		—
Goodwill and other intangibles		(100,348)		(104,519)
Deferred tax assets		—		—
Other		(1,611)		(1,512)
CET1	Ps.	12,857,057	Ps.	12,229,738
Hybrid instruments recognized as additional primary capital		—		—
Other		192		192
AT1	Ps.	192	Ps.	192
Tier I	Ps.	12,857,249	Ps.	12,229,930
		—		—
Subordinated instruments		—		—
Plus/minus others		—		—
Tier II capital	Ps.	—	Ps.	—
Other deductions from technical capital		(24,232)		(41,551)
Technical capital	Ps.	12,833,017	Ps.	12,188,379
Risk-weighted assets		21,097,041		20,630,956
Market risk		294,820		320,096
Market risk exposure ⁽¹⁾		3,275,783		3,556,617
Operational risk		205,781		271,948
Operational risk exposure ⁽¹⁾		2,286,453		3,021,644
Risk-weighted assets including regulatory market risk and operational risk	Ps.	26,659,277	Ps.	27,209,217
CET1 solvency ratio		48.23%		44.95%
AT1 contribution to solvency ratio		0.00%		0.00%
Tier 1 capital solvency ratio		48.23%		44.95%
Tier II contribution to solvency ratio		0.00%		0.00%
Total solvency ratio ⁽²⁾		48.14%		44.80%

Capital measure	Ps.	12,857,250	Ps.	12,229,930
Exposure measure		29,017,318		27,239,441
Leverage ratio		44.31%		44.90%

⁽²⁾ Solvency ratio is calculated as technical capital to risk-weighted assets, including regulatory value at risk and regulatory operational risk.

Porvenir S.A.


		Separate basis
		At December 31,
		2025		2024

		(in Ps)
Subscribed and paid-in capital	Ps.	109,211	Ps.	109,211
Reserves and retained earnings		2,870,070		2,543,792
Other comprehensive income		(29,084)		(19,698)
Net income for the period		701,905		652,600
Non-controlling interests		—		—
Deductions:		—		—
Unconsolidated financial sector investments		—		—
Goodwill and other intangibles		(405,131)		(381,208)
Deferred tax assets		(33,661)		(25,646)
Others		(53,826)		(53,826)
Primary capital	Ps.	3,159,484	Ps.	2,825,225

Unrealized gains/losses on securities available for sale		—		—
Secondary capital (Tier II)	Ps.	—	Ps.	—

Deductions:
Value of the stabilization reserve		(2,607,155)		(2,269,084)
Technical capital	Ps.	552,328	Ps.	556,140
Risk-weighted assets		693,323		671,894
Market risk		4,352		3,832
Market risk exposure ⁽¹⁾		48,361		42,577
Operational risk		137,330		121,454
Operational risk exposure ⁽¹⁾		1,525,884		1,349,490
Risk-weighted assets including regulatory market risk and operational risk	Ps.	2,267,568	Ps.	2,063,961
Solvency ratio⁽²⁾		24.36%		26.95%

⁽²⁾ Solvency ratio is calculated as technical capital to risk-weighted assets, including regulatory value at risk and regulatory operational risk.

Aval Fiduciaria


		Separate basis
		At December 31,
		2025		2024

		(in Ps)
Subscribed and paid-in capital	Ps.	31,384	Ps.	31,384
Reserves and retained earnings		19,951		19,951
Other comprehensive income		(7,471)		(7,381)
Net income for the period		16,367		12,926
Non-controlling interests		—		—
Deductions:
Unconsolidated financial sector investments		—		—
Goodwill and other intangibles		(24,256)		(20,156)
Deferred tax assets		(3,895)		(3,844)
Other		—		—
Primary capital	Ps.	32,080	Ps.	32,880

Subordinated instruments		—		—
Unrealized gains/losses on securities available for sale(1)		—		—
Secondary capital (Tier II)	Ps.	—	Ps.	—

Deductions:
Value of the stabilization reserve		—		—
Other deductions from regulatory capital		—		—
Regulatory capital	Ps.	32,080	Ps.	32,880
Risk-weighted assets		28,679		30,098
Market risk		478		717
Market risk exposure(1)		5,315		7,967
Operational risk		14,591		12,889
Operational risk exposure(1)		162,123		143,206
Risk-weighted assets including regulatory market risk and operational risk	Ps.	196,117	Ps.	181,271
Solvency ratio(2)		16.36%		18.14%

(1)	Regulatory value at risk consists of value at risk multiplied by (100/9) as required by the Superintendency of Finance. Regulatory operational risk consists of operational risk multiplied by specific weightings as defined the Superintendency of Finance.

(2)	Solvency ratio is calculated as regulatory capital to risk-weighted assets, including regulatory value at risk and regulatory operational risk.

Aval Casa de Bolsa


		Separate basis
		At December 31,
		2025		2024

		(in Ps)
Subscribed and paid-in capital	Ps.	15,580	Ps.	15,580
Reserves and retained earnings		36,277		36,227
Other comprehensive income		(2,909)		(2,944)
Net income for the period		10,915		829
Non-controlling interests		—		—
Deductions:		—		—
Unconsolidated financial sector investments		—		—
Goodwill and other intangibles		(2,565)		(3,513)
Deferred tax assets		—		—
Other		—		—
Primary capital	Ps.	57,298	Ps.	46,179

Subordinated instruments		—		—
Unrealized gains/losses on securities available for sale(1)		—		—
Secondary capital (Tier II)	Ps.	—	Ps.	—

Deductions:
Value of the stabilization reserve		—		—
Other deductions from regulatory capital		—		—
Regulatory capital	Ps.	57,298	Ps.	46,179
Risk-weighted assets		22,752		13,638
Market risk		5,709		6,790
Market risk exposure(1)		63,428		75,444
Operational risk		2,761		3,120
Operational risk exposure(1)		30,682		34,667
Risk-weighted assets including regulatory market risk and operational risk	Ps.	116,862	Ps.	123,749
Solvency ratio(2)		49.03%		37.32%

(1)	Regulatory value at risk consists of value at risk multiplied by (100/9) as required by the Superintendency of Finance. Regulatory operational risk consists of operational risk multiplied by specific weightings as defined the Superintendency of Finance.

(2)	Solvency ratio is calculated as regulatory capital to risk-weighted assets, including regulatory value at risk and regulatory operational risk.