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




Quarterly Results: Davivienda - HOLD

Superb bottom-line growth, mitigated by relatively low Tier 1 ratio

Price: COP 32,140; Target Price: COP 32,000

Ideas get bigger when you share them...

August 13, 2014 (www.investorideas.com newswire) Davivienda recorded COP 240 bn in profits in 2Q14, equivalent to a superb growth of 612% y/y. Results came 15% above our estimates, mostly as a result of lower than expected provision expenses, which decreased 4% y/y. According to the MD&A, the bank managed to free 50% of its additional provisions in the consumer loan book, lowering the NPL coverage ratio to 236% from 243% last year. The other lines of the income statement came in line, showing a notorious improvement given the harsh effects of the fixed-income portfolio fall in 2Q13, compared to a more "normal" quarter in 2Q14. The weak spot of the release was the relatively low Tier 1 ratio.

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

Is capital adequacy in the spotlight? With a Tier 1 ratio for the quarter at 6.9%, the odds of a capital injection increase. However, the bank has a relatively higher dividend payout and some reserves that could eventually be converted into Tier 1. Nonetheless, given the potential overhang risk from this low ratio, we maintain our HOLD rating.

Regards,
Credicorp Capital

La informacion contenida en este mensaje es confidencial y para conocimiento exclusivo del destinatario. La informacion 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 informacion con carácter definitivo y oficial de Credicorp Capital. La informacion relacionada con su cuenta, los extractos, informes financieros y de productos, solo 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 informacion 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 transmision de virus o programas dañinos por este medio. Credicorp Capital, no se responsabiliza por eventuales daños o alteraciones como consecuencia de la recepcion o uso del presente mensaje.

To View Complete Report: Davivienda

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 as well as creates original content as a news source. Original content created by investor ideas is protected by copyright laws other than syndication rights. Investorideas is a news source on Google news and global 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 and 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 Disclosure: Investorideas is long shares of OEDV.

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:  





TOP

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

Sign up here

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