Table of Contents | | UNITED STATES | | --- | --- | | | SECURITIES AND EXCHANGE COMMISSION | | | Washington, D.C. 20549 | | | FORM 20-F | | ☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF | | | 1934 | | | OR | | ☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | | for the fiscal year ended December 31, 2024 | | | OR | | ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | | For ...

Hey there! My focus here is to provide you with insightful rating analysis on the world's leading financial firms to help you navigate and comprehend the latest investment opportunities while identifying potential pitfalls. My favorite picks are those that are tilted toward both the growth and quality factors. These are stocks that have a strong growth story combined with robust financial statements to support the growing narrative. My first investment was made seven years ago, and I have passed all CFA Pro ...

Grupo Aval Acciones y Valores S.A. (NYSE:AVAL) Q4 2024 Earnings Conference Call February 19, 2025 9:00 AM ET Company Participants Maria Lorena Gutierrez Botero - Chief Executive Officer Paula Duran - Corporate Vice President of Sustainability and Strategic Projects Camilo Perez Alvarez - Banco de Bogota's Chief Economist Diego Fernando Solano Saravia - Chief Financial Officer Conference Call Participants Brian Flores - Citigroup Nicolas Riva - BofA Securities Carlos Gomez-Lopez - HSBC Daniel Mora - CrediCor ...

4Q24 Consolidated Earnings Results IFRS ADL no es empresa vigilada por la Superintendencia Financiera de Colombia Disclaimer Grupo Aval Acciones y Valores S.A. ("Grupo Aval") is an issuer of securities in Colombia and in the United States ("SEC"). As such, it is subject to compliance with securities regulation in Colombia and applicable U.S. securities regulation. Grupo Aval is also subject to the inspection and supervision of the Superintendency of Finance as holding company of the Aval financial conglomer ...

Core Insights - The focus is on providing insightful rating analysis of leading financial firms to identify investment opportunities and potential risks [1] Group 1 - The preferred investment picks are those that exhibit both growth and quality factors, characterized by strong growth narratives supported by robust financial statements [1] - The analyst has a background of seven years in investment, having passed all CFA Program exams, indicating a solid foundation in financial analysis [1]

Core Viewpoint - Grupo Aval Acciones y Valores S.A. is preparing to present its consolidated financial results for Q3 2024, highlighting its compliance with both Colombian and U.S. securities regulations [2][3]. Group 1: Company Overview - Grupo Aval is an issuer of securities in both Colombia and the United States, subject to relevant securities regulations [2]. - The company operates under the supervision of the Superintendency of Finance as part of the Aval Financial Conglomerate [2]. Group 2: Financial Reporting - The consolidated financial information is presented in accordance with IFRS as issued by the IASB [2]. - Unconsolidated financial information of subsidiaries and the Colombian banking system is reported according to Colombian IFRS [3]. Group 3: Forward-Looking Statements - The report includes forward-looking statements that may be identified by terms such as "may," "will," "expects," and "anticipates" [4]. - Actual results may differ materially from those anticipated due to changes in economic conditions and other risks [4].

Financial Data and Key Metrics Changes - Return on average equity was 9.7%, comparable to the third quarter of 2022 [9] - Net income to shareholders was 415 billion pesos, marking the best result for the third quarter in three years [46][66] - Total net income for the quarter was 416 billion pesos or 17.5 pesos per share [66] Business Line Data and Key Metrics Changes - Combined gross loans grew 0.7%, reaching a 25.2% market share by September [46] - Commercial loans expanded 5% year-on-year and 0.1% over the quarter, while consumer loans grew 0.9% during the quarter [53] - Consumer loan disbursements grew 18% over the quarter and 28% year-on-year, reaching 19 trillion pesos [50] Market Data and Key Metrics Changes - The Colombian economy registered annual growth of 1.9% year-to-date to August, supported by household consumption and a resilient export sector [31] - National unemployment fell to 9.8% in September, the lowest level in two years [34] - Inflation decreased to 5.4% in October, the lowest level since the end of 2021 [34] Company Strategy and Development Direction - The company aims to leverage synergies and efficiencies through the newly named Aval Valor Compartido (AVC) [10][11] - The company is supporting the central bank's initiative for a real-time payment system called BREVE, enhancing financial inclusion [14][15] - The company expects to return to double-digit profitability and benefit from stronger growth in real-term services by 2025 [70] Management's Comments on Operating Environment and Future Outlook - Management noted that inflation trends are positive, suggesting a need for faster rate cuts from the central bank [28] - The company anticipates GDP growth to exceed 2.5% in 2025, with a more predictable and lower inflation environment [70] - The fiscal situation remains a challenge, limiting the space for a more expansive monetary policy [41] Other Important Information - The company achieved its highest score in the Corporate Sustainability Assessment, placing it in the 90th percentile [17] - The company disbursed 10.6 trillion pesos under the Pacto por el Crédito program, aimed at supporting prioritized sectors [88] Q&A Session Summary Question: Mortgage market strategy and ROE trends - The company expects to continue gaining market share in mortgages due to being underweighted compared to peers and anticipates ROE trends to improve through a combination of cost control and market growth [74][76] Question: Consumer vs. commercial segment performance - The commercial segment is lagging due to the typical cycle where consumer performance leads, with no specific sector identified as particularly challenging [82][83] Question: NIM performance and guidance - NIM for 2024 is expected to be in the 3.6% area, with improvements projected for 2025 [87] Question: Loan program conditions - Loans disbursed under the Pacto por el Crédito have special conditions, including lower rates for housing credit and guarantees for renewable energy projects [89]

Core Insights - The article emphasizes the importance of value investing, which focuses on identifying undervalued companies in the market [2] - It highlights the Zacks Rank and Style Scores system as tools for investors to find strong stocks, particularly those with high value grades [3] Company Analysis: Grupo Aval Acciones y Valores (AVAL) - AVAL currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4] - The stock is trading at a P/E ratio of 6.06, significantly lower than the industry average of 17.66, suggesting it is undervalued [4] - AVAL's Forward P/E has fluctuated between 5.50 and 11.46 over the past year, with a median of 6.82, further indicating its valuation status [4] - The P/CF ratio for AVAL is 14.21, which is attractive compared to the industry's average P/CF of 32.65, reinforcing the notion of undervaluation based on cash flow [5] - Over the past 52 weeks, AVAL's P/CF has ranged from 6.46 to 15.84, with a median of 8.79, highlighting its cash flow performance [5] - Overall, AVAL's strong value metrics and positive earnings outlook position it as an impressive value stock at the moment [6]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the ...

Financial Data and Key Metrics Changes - The second quarter showed stronger loan and deposit growth, with combined gross loans growing 1.8%, reaching a 25% market share by March 2024 [24] - Net income to shareholders was COP204 billion, with a return on average equity of 4.9% [26][41] - Total assets grew 3.2% over the quarter to COP317 trillion, with gross loans reaching COP193 trillion, growing 2.4% during the quarter and 4.8% year-on-year [29] Business Line Data and Key Metrics Changes - Commercial loans expanded 2.9% in the quarter and 5.9% year-on-year, while consumer loans resumed growth at 0.9% [30] - Mortgages grew 4.3% over the quarter and 10.8% year-on-year [30] - The quality of consumer loans began to improve, while commercial loans and mortgages showed slight deterioration [28] Market Data and Key Metrics Changes - The Colombian economy showed an annual growth of 2% through May 2024, influenced by the recovery of the global economy and better performance in sectors like public administration and agriculture [14] - Inflation trended down, falling below 7% in July, with expectations for it to trend towards 5.6% for the year [17][19] - The current account deficit reduced to levels close to 2% of GDP, supported by lower demand for imports and increased inflows from remittances and tourism [19] Company Strategy and Development Direction - The company aims to support Colombia's economic recovery by launching a group-wide plan to contribute to sustainable growth and employment generation in key sectors such as SMEs, housing, and energy transition [23] - An ambitious corporate synergies and efficiency plan is being designed to enhance performance [24] - The company is focused on sustainable growth and expects a better macroeconomic scenario in the second half of the year to support profitability [42] Management's Comments on Operating Environment and Future Outlook - Management noted that economic growth remains below historical levels, with investment well below pre-pandemic estimates [13][15] - The company expects loan growth rates to rise later in the year due to normalization of monetary policy and improvement in consumer loan quality [30] - The management expressed confidence in the team's ability to strengthen market position and achieve long-term strategic goals [9] Other Important Information - The company appointed new leadership in key positions to strengthen management teams [8][9] - Grupo Aval ranked sixth in Latin America for its commitment to diversity and inclusion, with Banco de Bogotá ranking first [10] Q&A Session Summary Question: Confirmation of ROE guidance - The ROE guidance is confirmed at 6.5% [44] Question: Impact of Banco Popular's equity issuance - Banco Popular's issuance is supported by Grupo Aval, which has financed it in the past [44] Question: Expectations for 2025 results - Management can only provide directional guidance for 2025, emphasizing a positive trend in NIM and cost of risk [44] Question: Rationale for Banco Popular's capital raise - The decision to strengthen Banco Popular is due to its recent losses and the potential for future growth, despite its current strong capitalization [49] Question: Update on Tier 2 capital raising for Banco Popular - The group is ready to support the Tier 2 capital raise, with no market execution risk anticipated [52]