Investorideas.com – big ideas for global investors Search www.investorideas.com
   Member Access       Sign-up       Newsfeeds        Companies        Stock Directories       Research       Cleantech       Video       New Ventures   




Grupo Aval 4Q13 Results: Operating results in line; net income a bit short on higher-than-expected minority interest

Price: COP 1,300; Target Price: COP 1,500

Ideas get bigger when you share them...

April 8, 2014 (www.investorideas.com newswire) Grupo Aval recorded COP 362 bn of net income, 11% below our forecast and 26% below 4Q12’s figure. However, most of the surprise came from minority interest and not from the operating side. On the other hand, net revenues and opex came in line with our expectations, while provision expenses posted a slight surprise.

Join Investor Ideas Members to access the Renewable Energy stocks directory, water stocks, biotech stocks, defense stocks directories and the Insiders Corner

Gross loans increased 21% y/y due partly to the consolidation of acquired assets in Guatemala and Panama via Banco de Bogota in 4Q13. Organic growth in Colombia recorded a 12% y/y, posting impressive rates in mortgages (+75% y/y) due to a low market share in the segment, while consumer loans decelerated.

Net interest income increased 10.6%, reducing LTM NIM from 6.9% in 2012 to 6.5%; however, NIM expansion is forecasted on a normalization of the intervention rate expected sometime in mid-14. Provision expenses increased 23% y/y partly explained by change on loan mix towards retail segments in Colombia.

ROAA at 1.9% was in line with our forecast, but ROAE closed at 15.4% due to a temporary difference on the capital injection computation in the equity line (we expected the full effect in 1Q14). This temporary effect will decrease slightly the ROAE expected for 2014 due to the methodology used in our models (net income over average of the current and last year equity). On the mid to long run, the capital injection effect should dilute in the operation’s growth, and we remain confident about management ability to increase ROAEs to the 20%-21% range. Thus, our constructive view on PfAval remains, based on strong fundamentals and high dividend yield which limits downside risks.

For charts, tables and the full report, see the attached file.

Regards,
Credicorp Capital

La información contenida en este mensaje es confidencial y para conocimiento exclusivo del destinatario. La información y opiniones contenidas en este mensaje pertenecen únicamente al remitente, excepto cuando en el cuerpo del mensaje se establezca lo contrario y el remitente esté autorizado para enviar dicha información con carácter definitivo y oficial de Credicorp Capital. La información relacionada con su cuenta, los extractos, informes financieros y de productos, sólo será vinculante en la medida en que sea remitida por los canales y en los formatos que Credicorp Capital determine. Las opiniones, conclusiones o cualquier otra clase de información contenida en este correo no relacionadas con los fines del negocio de Credicorp Capital, deben entenderse como personales y bajo ninguna circunstancia son avaladas por Credicorp Capital. Si usted ha recibido este mensaje por error por favor proceda a eliminarlo, y notificar al remitente. De cualquier manera, usted no debe usar, divulgar, revelar, distribuir, imprimir, copiar o adulterar en forma parcial o total este mensaje. Credicorp Capital no se hace responsable por la eventual transmisión de virus o programas dañinos por este medio. Credicorp Capital, no se responsabiliza por eventuales daños o alteraciones como consecuencia de la recepción o uso del presente mensaje.

To View Complete Report: Grupo Aval 4Q13 Results

More Info:

This news is published on the Investorideas.com Newswire and its syndicated partner network

Publish Your News - Send a release
News now!

Get free news alerts: Sign up here

Published at the Investorideas.com Newswire - Big ideas for Global Investors

Disclaimer/ Disclosure:The Investorideas.com newswire is a third party publisher of news and research as well as creates original content as a news source. Original content created by investorideas is protected by copyright laws other than syndication rights. Investorideas is a news source on Google news and Linkedintoday plus hundreds of syndication partners. Our site does not make recommendations for purchases or sale of stocks or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated by featured companies, news submissions, content marketing and online advertising. Contact each company directly for press release questions. Disclosure is posted on each release if required but otherwise the news was not compensated for and is published for the sole interest of our readers. More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp

BC Residents and Investor Disclaimer : Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: http://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.



Free News Alerts
Email:  

Read more News





TOP

Investor Ideas © 2000 - 2014 InvestorIdeas.com®, ECON

Free Investor Stock Alerts
Sign up here

login | logout | about us | contact | disclaimer / disclosure |
advertise | company profile directory | partners / links |
job search | privacy policy | trade | services | sitemap |