Aug 16 Reuters Colombian financial conglomerate Grupo Aval reported a 75.4 yearoveryear fall in net profit in the second quarter, according to a securities filing on Wednesday, despite a strong boost in interest income.

In the threemonth period to June, net profit reached 166.2 billion pesos 40.6 million.

Meanwhile, the conglomerate saw interest income soar 70 to 7.15 trillion pesos in the ApriltoJune period.

The company said results were negatively impacted by a 10.1 appreciation of the Colombian peso.

It added that the drop in profit was also due to lower 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.

The financial portfolio of Grupo Aval includes Colombian banks Banco de Bogota, Banco Popular, Banco AV Villas and Banco de Occidente.

1 4,096.08 Colombian pesos

Reporting by Noe Torres in Mexico City, Writing by Isabel Woodford

Source Reuters