Colombia's Grupo Aval posts 23.2% decrease in Q3 net profit

(Reuters) -Colombian financial conglomerate Grupo Aval reported third quarter net profit down 23.2% from a year earlier on Wednesday, landing at 929.8 billion pesos ($193.4 million), citing a higher effective tax rate and increased costs.

The company said interest income for the three months ending Sept. 30 grew 62.2% to 5.213 trillion pesos.

The conglomerate's portfolio includes Colombian banks Banco de Bogota, Banco Popular, Banco AV Villas and Banco de Occidente.

The central bank of Latin America's fourth-largest economy has raised its benchmark interest rate to 11% - its highest level in 21 years - in continued efforts to respond to rising inflation.

Grupo Aval, controlled by business magnate Luis Carlos Sarmiento, said its consolidated portfolio grew 16.5% during the quarter compared to 3Q21.

(1 dollar = 4,806.07 Colombian pesos at end-September)

(Reporting by Aida Pelaez Fernandez and Carolina Pulice, Writing by Kylie Madry; Editing by Brendan O'Boyle)