Authorized, issued and outstanding shares as of December 31, 2021 and 2020 consisted of the following:

(1)	Common Voting shares with a nominal value of (Ps. 1) Colombian peso.

(2)

Since 2011, Grupo Aval allows its shareholders to convert their common shares into preferred shares. For the years ended December 31, 2021 and 2020, 8,457,760 and 6,592,222 common shares were converted into preferred shares, respectively. Preferred shares have the right to receive a preferential minimum dividend of one Colombian peso (Ps. 1) per semester per share. This preferential minimum dividend is only applicable when dividends declared for common shares are less than one Colombian peso (Ps. 1). Preferential minimum dividends are not cumulative.

25.1 Appropriated retained earnings

As of December 31, 2021, and 2020 the appropriation of retained earnings is as follows:


	December 31, 2021		December 31, 2020
Retained earnings	Ps.	2,671,450	Ps.	1,785,978
Withholding tax over dividends		(5,740)		(5,699)
Legal reserve		11,140		11,140
Statutory and voluntary reserves		10,706,541		9,510,715
	Ps.	13,383,391	Ps.	11,302,134

25.1.1 Legal Reserve

In accordance with current legal regulations, Grupo Aval and its subsidiaries in Colombia shall create a legal reserve through the appropriation of (10%) of the net profits of each year up to an amount equal to (50%) of the subscribed capital stock. This reserve may be reduced below (50%) of the subscribed capital stock to stem losses in excess of retained earnings. The legal reserve cannot be less than the percentage aforementioned except to cover losses in excess of retained earnings.

25.1.2 Statutory and Voluntary Reserves

The Statutory and voluntary reserves are determined during the Shareholders Meetings.

25.2 Declared Dividends

The dividends are declared and paid to shareholders based on unconsolidated net income under Colombian IFRS (NCIF), the dividends declared were as follows:


	December 31, 2020		December 31, 2019		December 31, 2018
Net income for the periods ended on	Ps.	2,399,001	Ps.	3,031,238	Ps.	2,887,749
Cash dividends declared		In the general assembly held in March 2021, 54.00 pesos per share payable in twelve installments of 4.50 pesos per share, from April 2021 to March 2022.		In the general assembly held in March 2020, 60.00 pesos per share payable in twelve installments of 5.00 pesos per share, from April 2020 to March 2021.		In the general assembly held in March 2019, 60.00 pesos per share payable in twelve installments of 5.00 pesos per share, from April 2019 to March 2020.
Total outstanding shares		22,281,017,159		22,281,017,159		22,281,017,159
Total dividends declared	Ps.	1,203,175	Ps.	1,336,861	Ps.	1,336,861

25.3 Earnings per share

●

Basic earnings per share

Grupo Aval calculates basic earnings per share by dividing net income for the year attributable to controlling interest of Grupo Aval parent company by the weighted average number of shares outstanding during the year (including common and preferred shares).

The following table summarizes the earnings per share for the year ended as of December 31, 2021, 2020 and 2019:



		December 31, 2021		December 31, 2020		December 31, 2019
Net income for the year	Ps.	5,668,502	Ps.	4,631,616	Ps.	5,365,454
Less: participation of non- controlling interests		(2,370,766)		(2,282,095)		(2,331,045)
Net income attributable to owners of the parent		3,297,736		2,349,521		3,034,409

Less: preferred dividends declared		—		—		—
Less: Allocation of undistributed earnings to preferred stockholders ⁽¹⁾⁽²⁾		(1,058,554)		(753,457)		(970,070)
Net Income allocated to common shareholders for basic and diluted EPS	Ps.	2,239,182	Ps.	1,596,064	Ps.	2,064,339
Weighted average number of common shares outstanding used in basic EPS calculation ⁽²⁾		15,128,947,661		15,135,829,538		15,158,004,812
Basic and Diluted earnings per share to common shareholders (pesos)		148.01		105.45		136.19
Basic and Diluted earnings per ADS in Colombian pesos ⁽³⁾		2,960.13		2,108.99		2,723.76
Weighted average of the common and preferred shares used in the calculation of earnings per basic share (common and preferred)		22,281,017,159		22,281,017,159		22,281,017,159
Basic earnings of the owners of the parent per share in Colombian pesos		148.01		105.45		136.19

(1)	Based on a weighted average of preferred shares.

(2)	Averages based on an end of month number of preferred or common shares.

(3)	Each ADS represents 20 preferred shares.

●	Diluted earnings per share

On December 31, 2021, 2020 and 2019, Grupo Aval did not have any dilutive instruments.

25.4 Equity transactions

On December 31, 2021 some transactions took place that resulted in changes to the interests of Grupo Aval and its subsidiaries, below is the detail of the most significant equity transactions:

●

Corporación Financiera Colombiana S.A. - Corficolombiana S.A.

In Corficolombiana, Grupo Aval and its subsidiaries chose to receive dividends in shares, unlike some minority shareholders who opted to be paid dividends in cash, generating a dilution effect for Ps.19,929, which led to a modification in Grupo Aval's stake from 39.58% to 39.98%.

●

Preference shares

There was payment of dividends Ps.14,612 corresponding to the preferred shares issued by Multi Financial Group.

25.5 Consolidated Other Comprehensive Income (OCI):

Components of accumulated Other Comprehensive Income for the years ended December 31, 2021, 2020 and 2019 are as follows:

Net gain (loss) on hedges of net investment in foreing operations

Cash flow hedges

Foreing currency translation differences from unhedged foreign operations

Effect of moving investment properties for own use

Unrealized gains (losses) debt securities

Unrealized gains (losses) Equity securities

Investments in associates and join ventures

Actuarial gains(losses)

Income tax

Total comprehensive income, net of taxes

Ending balance 2018

Ps.

(206,783)

Ps.

(14,343)

Ps.

(466,212)

Ps.

—

Ps.

(38,622)

Ps.

484,274

Ps.

111,346

Ps.

(114,444)

Ps.

1,493,556

Ps.

1,248,772

Current-period change

(2,931)

13,469

128,135

5,288

426,300

237,781

(9,061)

(61,222)

(36,029)

701,730

Ending balance 2019

Ps.

(209,714)

Ps.

(874)

Ps.

(338,077)

Ps.

5,288

Ps.

387,678

Ps.

722,055

Ps.

102,285

Ps.

(175,666)

Ps.

1,457,527

Ps.

1,950,502

Current-period change

(517,989)

832

(548,706)

9,014

172,906

193,880

13,059

(9,488)

457,181

(229,311)

Ending balance 2020

Ps.

(727,703)

Ps.

(42)

Ps.

(886,783)

Ps.

14,302

Ps.

560,584

Ps.

915,935

Ps.

115,344

Ps.

(185,154)

Ps.

1,914,708

Ps.

1,721,191

Current-period change

962,735

7,980

(180,798)

4,718

(1,346,315)

(110,397)

(846)

61,665

1,054,017

452,759

Ending balance 2021

Ps.

235,032

Ps.

7,938

Ps.

(1,067,581)

Ps.

19,020

Ps.

(785,731)

Ps.

805,538

Ps.

114,498

Ps.

(123,489)

Ps.

2,968,725

Ps.

2,173,950


	Non -controlling interest		Owners of the parent		Total comprehensive income, net of taxes
Beginning balance 2018	Ps.	551,999	Ps.	696,773	Ps.	1,248,772
Current-period change		305,056		396,674		701,730
Ending balance 2019	Ps.	857,055	Ps.	1,093,447	Ps.	1,950,502
Current-period change		2,123		(231,434)		(229,311)
Ending balance 2020	Ps.	859,178	Ps.	862,013	Ps.	1,721,191
Current-period change		197,590		255,169		452,759
Ending balance 2021	Ps.	1,056,768	Ps.	1,117,182	Ps.	2,173,950