AVAL Earnings Prediction
The chart below shows how AVAL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AVAL sees a +1.03% change in stock price 10 days leading up to the earnings, and a -2.14% change 10 days following the report. On the earnings day itself, the stock moves by -0.41%. This data can give you a slight idea of what to expect for the next quarter's release.
AVAL Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.26T
23.70%
9.59%
Gross Margin
--
--
--
Operating Margin
28.58%
258.59%
33.80%
Net Margin
22.33%
95.88%
48.08%
EPS
17.51
541.39%
103.37%
No Data Available
AVAL Earnings Analysis
GRUPO AVAL ACCIONES Y VALORES S.A. Corporation (AVAL.N) Earnings Conference Call
Positive
Return on Equity Recovery: 1. Return on Average Equity: Achieved a return on average equity of 9.7%, marking a return to levels comparable to Q3 2022.
Banking Segment Net Income: 2. Record Net Income: The banking segment reported net income levels close to the continued net income of Q3 and Q4 2022, driven by improvements in cost of risk and cost control.
Consumer Loan Growth: 3. Loan Disbursement Growth: Consumer loan disbursements grew 18% over the quarter and 28% year-on-year, indicating a strong recovery in the consumer segment.
Market Share Expansion: 4. Market Share Gains: The bank's combined gross loans grew 0.7%, reaching a 25.2% market share by September 2024, with significant year-on-year market share gains across all loan categories.
Sustainable Financing Expansion: 5. Sustainable Financing Portfolio: The sustainable goal portfolio strengthened, reaching 17.3 trillion pesos, financing various sustainable initiatives including construction, mobility, and renewable energy.
Negative
Weak Loan Growth: 1. Declining Loan Growth: Despite a slight increase in loan disbursements, overall loan growth remains weak, with consumer loans only growing 0.8% year-on-year, significantly below historical levels.
Commercial Loan Challenges: 2. Deteriorating Commercial Loans: The commercial loan segment continues to deteriorate, with a noted lag in recovery compared to consumer loans, indicating ongoing challenges in this area.
Net Interest Margin Decline: 3. Pressure on Net Interest Margin (NIM): The NIM on loans decreased by 7 basis points to 4.2%, impacted by high funding costs and regulatory pressures, which are expected to persist in the near term.
Rising Cost of Risk: 4. Increased Cost of Risk: The cost of risk for commercial loans was reported at 0.9%, indicating ongoing challenges in asset quality and potential future losses.
Financial Sector Struggles: 5. Weak Financial Sector Performance: The financial sector's overall performance is under pressure, with tax collection falling short of government estimates, leading to potential deeper cuts in public spending and impacting economic growth.
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AVAL Earning Call Sentiment
Grupo Aval Acciones y Valores SA (AVAL) Q3 2024 Earnings Conference Call Transcript
1.0x
00:00
00:00
AVAL.N
-5.61%Positive
The earnings call presents mixed signals. While there are positive aspects such as a record high ROE of 9.7% and optimistic long-term ROE projections, concerns like high interest rates affecting loan growth and a cautious monetary policy impact the sentiment. The Q&A reveals some positive expectations for mortgage market share and long-term ROE improvements, but also highlights uncertainties in commercial recovery and unclear responses on government loan programs. Given the market cap, the overall sentiment is neutral, reflecting a balance of positive and negative factors.
