Grupo Supervielle, Banco Marco, Grupo Financiero Galicia cut to Neutral at Citi

As previously reported, Citi analyst Brian Flores downgraded Grupo Supervielle (SUPV), Banco Marco (BMA), Grupo Financiero Galicia (GGAL), and Banco BBVA Argentina (BBAR) to Neutral from Buy. The firm notes a negative feedback loop accelerated by the worse-than-expected electoral outcome that dampens banks’ fundamentals, adding that despite being recently updated, the guidance by banks could be potentially superseded by the recent macro challenges, the analyst tells investors in a research note. Citi adds that among the impacts on banks, it sees the possibility of higher cost of funding affecting net interest margins and higher uncertainty hurting credit demand.