The following is a summary of the Grupo Aval Acciones Y Valores SA (AVAL) Q1 2024 Earnings Call Transcript:
Financial Performance:
Grupo Aval reported net earnings of 883 billion pesos during the last year from a turnover of 13.5 trillion pesos.
The company managed to increase its market share across major lending categories despite challenging conditions.
Net interest margin growth and cost-to-asset efficiency fell mostly within initial predictions and guidance.
The company's sustained loan performance was stimulated by an increase in cost risk.
Delinquency metrics remain above historical levels, despite a high charge-off rate from competitors.
The consolidated net interest margin (NIM) and loans expanded by 16 basis points to 4.3% quarter-on-quarter.
The company reported a cost of risk of 2.3% and a return on equity (ROE) of about 6.5%.
Business Progress:
Grupo Aval is focusing on sustainability, planning to achieve carbon neutrality in its direct subsidiaries between 2024 and 2025.
The company is collaborating with the government on the Misión La Guajira project, aiming to deliver essential resources to over 80 communities.
A majority of the company's significant financial subsidiaries are in the process of establishing climate change risk parameters based on CCFC principles.
The Banco de Bogota, one of the company's subsidiaries, has been recognized as the best workplace for women in 2023 among companies with more than 1,500 employees.
The board of directors underwent significant changes, increasing the proportion of independent members and women on the board.
The company anticipates that actions taken in response to post-COVID economic recovery will begin showing in the results towards the end of the year.
More details: Grupo Aval IR
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