Gabriel Noriega's questions to Grupo Aval Acciones Y Valores (AVAL) leadership • Q3 2016
Question
Gabriel Noriega of UBS asked for the key drivers behind the loan growth guidance of 8% for 2016 and 10% for 2017, particularly which loan types would grow most, and also requested an outlook for the yield on average loans.
Answer
President and CEO Luis Carlos Sarmiento explained that 2017 loan growth would be driven by a recovery in corporate investments post-tax reform, financing for 4G infrastructure concessions, and improved GDP growth. He also highlighted that an expected shift in monetary policy early in the year should help boost loan demand. The company's guidance section had previously addressed yields, projecting a 2017 total NIM of 5.7% to 5.8%.