Colombian financial group Grupo Aval recorded a 75.4% year-on-year drop in net profit in the second quarter, despite a substantial increase in interest revenue, according to a securities filing on Wednesday.
Net profit for the three months ending June was 166.2 billion pesos ($40.6 million).
Meanwhile, the conglomerate’s interest income increased by 70% to 7.15 trillion pesos from April to June.
According to the firm, the results were “negatively impacted by a 10.1% appreciation of the Colombian peso.”
It further stated that the decrease in earnings was attributable to weaker margins.
“Our banking subsidiaries continue to experience challenges on their intermediation margins as a result of the rapid increase in the cost of funds,” the company said in a statement.
Grupo Aval’s (GAA.CN) financial portfolio includes Colombian banks Banco de Bogota (BBO.CN), Banco Popular (BPO.CN), Banco AV Villas (VLL.CN), and Banco de Occidente (BOC.CN).
($1 = 4,096.08 Colombian pesos)