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RELATED PARTIES
12 Months Ended
Dec. 31, 2021
Disclosure of related parties [abstract]  
RELATED PARTIES

NOTE 34 – RELATED PARTIES

To verify the correct identification of relationships and transaction with related parties, Grupo Aval has established a specific formal Procedure for the Identification and Disclosure of Balances and Transactions with Related Parties. Such procedure is communicated and made available to our personnel through Grupo Aval’s intranet. In application of this procedure, our members of the Board of Directors and our key management personnel are periodically required to identify close family members and entities over which such persons have significant influence.  Such process is conducted by a written request containing the criteria that such person must consider in order to provide information on close family members and entities that must be disclosed as their related parties.

In addition, Grupo Aval Vice-Presidency of Accounting Consolidation periodically performs an evaluation of its controlling and non-controlling investments in other entities to identify if such entities should be treated as a related entity.

The following are some of the guidelines included in the abovementioned corporate framework:

●Grupo Aval and its subsidiaries shall permanently carry out the registration of the operations performed with related parties, identifying the type of operation, its purpose, economic conditions and authorizations received when applicable.
●Grupo Aval and its subsidiaries shall establish limits of indebtedness or exposure and perform constant monitoring of the intragroup operations, complying for such purpose with the restrictions set forth under applicable regulations.
●All intragroup operations shall be fully identified by accounting areas of the respective entities.
●Authorization levels are defined within the governance and control structure, assigned as may be deemed adequate as a function of the magnitude and type of transaction, keeping the evidence of such authorizations.
●It should be verified that related party transactions are carried out for a good and valuable consideration, at market conditions, maintaining a financial equilibrium in the relationships between the entities participating in the operation.

This Reference Framework for Institutional Relations was also submitted to the consideration and approval of the Board of Directors of our subsidiaries and has been made available in the web sites of Grupo Aval and its subsidiaries.

Balances as of the year ended December 31, 2021 and 2020, with related parties, are detailed in the following tables:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Individuals

​

Entities

​

    

​

​

    

​

​

    

​

​

    

​

​

    

Entities

​

​

Individuals

​

​

​

​

​

​

​

​

​

​

with

​

​

with

​

​

​

​

​

​

​

Entities

​

significant

​

​

control

​

Key

​

Associates

​

controlled

​

influence

​

​

over Grupo

​

management

​

and joint

​

by

​

by

December 31, 2021

​

Aval (*)

​

personnel (*)

​

ventures

​

individuals

 

individuals

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Financial assets in investments

​

Ps.

—

​

Ps.

—

​

Ps.

1,489,672

​

Ps.

—

​

Ps.

—

Financial assets in credit operations

​

​

10,839

​

​

8,592

​

​

541,293

​

​

1,551,342

​

​

187,466

Accounts receivable

​

​

58

​

​

8

​

​

20,761

​

​

351,582

​

​

2

Other assets

​

​

—

​

​

—

​

​

8,974

​

​

4,526

​

​

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Liabilities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Deposits

 

Ps.

191,333

 

Ps.

29,704

 

Ps.

110,142

 

Ps.

1,910,253

 

Ps.

12,914

Accounts payable

​

​

583

​

​

375

​

​

15,685

​

​

771,804

​

​

10

Financial obligations

​

​

2

​

​

12

​

​

—

​

​

—

​

​

—

Other liabilities

​

​

—

​

​

—

​

​

2,492

​

​

1,234

​

​

—

(*) Include family members

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Individuals

​

Entities

​

    

​

​

    

​

​

    

​

​

    

​

​

    

Entities

​

​

Individuals

​

​

​

​

​

​

​

​

​

​

with

​

​

with

​

​

​

​

​

​

​

Entities

​

significant

​

​

control

​

Key

​

Associates

​

controlled

​

influence

​

​

over Grupo

​

management

​

and joint

​

by

​

by

December 31, 2020

​

Aval (*)

​

personnel (*)

​

ventures

​

individuals

​

individuals

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Assets

 

  

​

  

​

  

 

  

​

​

  

​

  

​

  

Financial assets in investments

 

Ps.

—

  

Ps.

—

 

Ps.

1,043,666

​

Ps.

—

  

Ps.

—

Financial assets in credit operations

 

  

5,916

  

​

7,355

 

  

569,718

​

  

1,604,776

  

​

135,531

Accounts receivable

 

  

9

  

​

21

 

  

7,301

​

  

29,354

  

​

12

Other assets

 

  

34

  

​

—

 

  

3,207

​

  

7,313

  

​

167

​

 

  

​

  

​

  

 

  

​

​

  

​

  

​

  

Liabilities

 

  

​

  

​

  

 

  

​

​

  

​

  

​

  

Deposits

 

Ps.

300,093

  

Ps.

27,058

 

Ps.

117,815

​

Ps.

1,796,235

  

Ps.

9,219

Accounts payable

 

  

689

  

​

351

 

  

5,194

​

  

695,671

  

​

10

Financial obligations

 

  

—

  

​

8

 

  

—

​

  

—

  

​

—

Other liabilities

 

  

—

  

​

—

 

  

2,575

​

  

350

  

​

—

(*) Include family members

​

Transactions during the years ended as of December 31, 2021, 2020 and 2019, with related parties are as follows:

a.Profit or loss

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Individuals

​

Entities

​

    

Individuals with

    

​

    

​

    

​

    

Entities with

​

​

control

​

Key

​

Associates

​

Entities

​

significant

​

​

over Grupo

​

management

​

and joint

​

controlled  by

​

influence by

December 31, 2021

​

Aval (*)

​

personnel (*)

​

ventures

​

individuals

​

individuals

​

​

​

​

​

​

​

​

​

​

​

 

Income

 

  

​

  

​

​

​

  

​

​

​

Interest income

 

Ps.

294

Ps.

439

Ps.

18,333

Ps.

60,964

Ps.

11,224

Fee income and commissions

 

  

4

  

51

 

30,417

  

120,642

 

6

Leases

 

  

—

  

—

 

1,459

  

81

 

—

Other income

 

  

7

  

14

 

340,583

  

15,867

 

20

​

​

​

​

​

​

​

​

​

​

​

​

Expenses

 

  

​

  

​

​

​

  

​

​

​

Financial expenses

 

Ps.

(857)

Ps.

(391)

Ps.

(1,034)

Ps.

(31,879)

Ps.

(127)

Fee expenses and commissions

 

  

(4)

  

(1,862)

 

(39,278)

  

(1,466)

 

(338)

Operating expenses

 

  

(308)

  

(9,829)

 

(327)

  

(2,648)

 

—

Other expenses

 

  

(3)

  

(2,868)

 

(84,328)

  

(49,364)

 

—

(*) Include family members

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Individuals

​

Entities

​

    

​

​

    

​

    

​

    

​

    

Entities

​

​

​

​

​

​

​

​

​

​

with

​

​

Individuals with

​

​

​

​

​

Entities

​

significant

​

​

control

​

Key

​

Associates

​

controlled

​

influence

​

​

over Grupo

​

management

​

and joint

​

by

​

by

December 31, 2020

​

Aval (*)

​

personnel (*)

​

ventures

​

individuals

​

individuals

​

​

​

​

​

​

​

​

​

​

​

​

Income

 

  

​

  

​

  

​

  

​

  

​

Interest income

 

Ps.

61

Ps.

463

Ps.

25,898

Ps.

85,308

Ps.

8,425

Fee income and commissions

 

  

7

  

48

  

26,185

  

100,424

  

6

Leases

 

  

—

  

—

  

1,219

  

95

  

—

Other income

 

  

6

  

8

  

273,113

  

6,720

  

10

​

​

​

​

​

​

​

​

​

​

​

​

Expenses

 

  

​

  

​

  

​

  

​

  

​

Financial expenses

 

Ps.

(882)

Ps.

(620)

Ps.

(1,062)

Ps.

(22,619)

Ps.

(52)

Fee expenses and commissions

 

  

(4)

  

(1,832)

  

(23,527)

  

(1,829)

  

(305)

Operating expenses

 

  

—

  

(9,743)

  

(754)

  

(3,539)

  

—

Other expenses

 

  

6

  

(1,834)

  

(60,029)

  

(68,522)

  

—

(*) Include family members

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Individuals

​

Entities

​

    

​

​

    

​

    

​

    

​

    

Entities

​

​

​

​

​

​

​

​

​

​

with

​

​

Individuals with

​

​

​

​

​

Entities

​

significant

​

​

control

​

Key

​

Associates

​

controlled

​

influence

​

​

over Grupo

​

management

​

and joint

​

by

​

by

December 31, 2019

​

Aval (*)

​

personnel (*)

​

Ventures (**)

​

individuals

​

individuals

​

​

​

​

​

​

​

​

​

​

​

​

Income

 

  

​

  

​

  

​

  

​

  

​

Interest income

 

Ps.

290

Ps.

722

Ps.

28,172

Ps.

90,281

Ps.

7,998

Fee income and commissions

 

  

17

  

45

  

36,505

  

106,120

  

6

Leases

 

  

—

  

—

​

—

  

324

  

—

Other income

 

  

7

  

7

  

274,349

  

6,285

  

534

​

​

​

​

​

​

​

​

​

​

​

​

Expenses

 

  

​

  

​

  

​

  

​

  

​

Financial expenses

 

Ps.

(169)

Ps.

(628)

Ps.

(1,251)

Ps.

(20,319)

Ps.

(28)

Fee expenses and commissions

 

  

(3)

  

(1,410)

  

(20,066)

  

(2,098)

  

(380)

Operating expenses

 

  

(300)

  

(7,850)

  

—

  

(3,278)

  

—

Other expenses

 

  

(14)

  

(1,893)

  

(444,730)

  

(41,276)

  

(25)

(*) Include family members

(**) Expenses were recognized during the year 2019 with respect to defaulted debts owed by related parties for Ps. 400,630

​

Outstanding amounts are not guaranteed and shall be liquidated in cash. Guarantees have not been granted or received.

b.Compensation of Key Management Personnel

The compensation received by the key personnel of the management comprises the following:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year ended as of

​

    

December 31, 

    

December 31, 

    

December 31, 

Items

​

2021

​

2020

​

2019

Salaries

 

Ps.

34,250

  

Ps.

34,274

 

Ps.

40,696

Short term benefits for employees

 

  

14,761

  

​

14,257

 

  

16,059

Larg term benefits for employees

​

​

425

​

​

587

​

​

742

Fee

​

​

1,871

​

​

1,239

​

​

1,525

Total

 

Ps.

51,307

  

Ps.

50,357

 

Ps.

59,022

​

​

Transactions with our related parties correspond primarily to the normal course of banking business activities carried out under market conditions. Such transactions include demand and saving deposits, time deposits, commercial, consumer and mortgage loans, financial leases, payment of dividends and or interest.