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Banco BBVA Argentina (BBAR)
NYSE:BBAR
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Banco BBVA Argentina
(NYSE:BBAR)
78Outperform
Banco BBVA Argentina (BBAR) vs. S&P 500 (SPY)
Market Cap
$4.12B
Dividend Yield9.33%
Average Volume (3M)758.09K
Price to Earnings (P/E)9.1
Beta (1Y)0.79
Revenue Growth22.97%
EPS Growth33.32%
CountryUS
Employees6,009
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)1.74
Shares Outstanding204,236,700
10 Day Avg. Volume713,875
30 Day Avg. Volume758,093
Financial Highlights & Ratios
PEG Ratio<0.00001
Price to Book (P/B)N/A
Price to Sales (P/S)1.79
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$27.00Price Target Upside54.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Banco BBVA Argentina Business Overview & Revenue Model
Company DescriptionBanco BBVA Argentina (BBAR) is a leading financial institution in Argentina, providing a wide range of banking and financial services to individuals, small and medium-sized enterprises (SMEs), and large corporations. The bank offers a comprehensive suite of products including savings and checking accounts, personal and commercial loans, credit cards, investment services, and insurance products. BBVA Argentina is part of the global BBVA Group, which enhances its ability to offer innovative digital banking solutions and maintain strong financial stability.
How the Company Makes MoneyBanco BBVA Argentina makes money primarily through interest income from loans and credit products, including personal loans, mortgages, and commercial loans. Additionally, the bank generates revenue from fees and commissions associated with its banking services, such as account maintenance, transaction fees, and credit card services. BBVA Argentina also earns income from its investment services, including asset management and brokerage services. The bank benefits from its affiliation with the BBVA Group, which provides operational efficiencies and enhanced technological capabilities, contributing to its profitability. Furthermore, strategic partnerships and collaborations with fintech companies enable BBVA Argentina to expand its digital offerings and reach a broader customer base.
Banco BBVA Argentina Financial Statement Overview
Summary
Banco BBVA Argentina presents a robust financial profile with strong revenue growth and effective cost management. Its solid balance sheet is characterized by low leverage and substantial equity. While cash flow generation is strong, past fluctuations indicate some risk. Overall, the company is well-positioned within the banking sector with opportunities for enhanced profitability.Income Statement
Banco BBVA Argentina shows a strong income statement with a significant increase in total revenue from 2022 to 2023, indicating robust growth. The gross profit margin is exceptionally high, suggesting effective cost control. However, the net profit margin is relatively lower, which indicates room for improvement in profitability.85
Very Positive
Balance Sheet
The balance sheet reveals a solid equity base with a healthy equity ratio. The debt-to-equity ratio is low, suggesting prudent financial management and low leverage risk. However, the return on equity, while positive, indicates potential for higher profitability relative to equity.78
Positive
Cash Flow
Cash flow analysis shows a substantial operating cash flow relative to net income, reflecting effective cash generation from operations. Free cash flow has grown appreciably, supporting future investments and debt servicing. Nonetheless, fluctuations in historical cash flows suggest potential volatility.80
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.64T | 1.92T | 424.49B | 161.12B | 108.77B | 83.24B | Gross Profit |
| 3.90T | 3.69T | 424.49B | 161.12B | 108.77B | 83.24B | EBIT |
| 13.39B | 1.12T | 62.74B | 21.10B | 20.67B | 35.47B | EBITDA |
| 18.95B | 0.00 | 72.59B | 0.00 | 0.00 | 37.18B | Net Income Common Stockholders |
| 204.63B | 156.86B | 58.84B | 18.31B | 12.04B | 31.01B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 123.67B | 1.99T | 913.64B | 385.42B | 279.68B | 201.48B | Total Assets |
| 354.61B | 6.11T | 1.96T | 1.03T | 688.97B | 440.23B | Total Debt |
| 2.47B | 64.41B | 24.10B | 15.14B | 1.17B | 9.84B | Net Debt |
| -96.63B | -1.08T | -272.20B | -203.21B | -150.94B | -146.44B | Total Liabilities |
| 316.03B | 4.70T | 1.59T | 867.58B | 584.21B | 374.92B | Stockholders Equity |
| 38.55B | 1.40T | 360.48B | 159.41B | 102.62B | 63.75B |
| Cash Flow | Free Cash Flow | ||||
| 1.76T | 559.08B | 94.07B | 108.67B | -13.29B | 24.55B | Operating Cash Flow |
| 1.84T | 601.23B | 110.48B | 116.71B | -10.14B | 27.21B | Investing Cash Flow |
| -712.01B | -43.00B | -27.15B | -7.50B | -2.70B | 99.48M | Financing Cash Flow |
| 53.56B | -486.11B | -5.92B | -5.37B | -10.13B | -3.59B |
Banco BBVA Argentina Technical Analysis
Negative
17.43
Price Trends
20.73
Negative
18.18
Negative
13.86
Positive
Market Momentum
-0.76
Positive
37.39
Neutral
25.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBAR, the sentiment is Negative. The current price of 17.43 is below the 20-day moving average (MA) of 19.01, below the 50-day MA of 20.73, and above the 200-day MA of 13.86, indicating a neutral trend. The MACD of -0.76 indicates Positive momentum. The RSI at 37.39 is Neutral, neither overbought nor oversold. The STOCH value of 25.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BBAR.
Banco BBVA Argentina Risk Analysis
Banco BBVA Argentina disclosed 44 risk factors in its most recent earnings report. Banco BBVA Argentina reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Banco BBVA Argentina Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $5.89B | 14.49 | 9.05% | 10.11% | 40.86% | 236.42% | |
81 Outperform | $51.83B | 7.30 | 20.84% | 3.02% | 1.25% | 20.03% | |
80 Outperform | $10.00B | 6.35 | 32.82% | 4.64% | 30.54% | 97.65% | |
78 Outperform | $4.12B | 9.12 | 16.83% | 9.33% | 22.97% | 33.32% | |
74 Outperform | $1.33B | 8.10 | 23.58% | 1.24% | 18.91% | 238.93% | |
66 Neutral | $16.15B | ― | 11.61% | 4.98% | -3.94% | ― | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% |
* Financial Sector Average
Performance Comparison
BBAR
Banco BBVA Argentina
17.43
10.73
160.15%
BMA
Banco Macro SA
81.62
43.08
111.78%
BSBR
Banco Santander Brasil
4.35
-1.15
-20.91%
GGAL
Grupo Financiero Galicia SA
54.39
31.84
141.20%
ITUB
Itau Unibanco
5.65
-0.90
-13.74%
SUPV
Grupo Supervielle SA
12.60
7.52
148.03%
Banco BBVA Argentina Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -8.36% | Next Earnings Date: May 21, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant economic improvements and digital growth, yet faced challenges in profitability and operating results. The bank's market share and asset quality showed positive trends, but declines in net income and efficiency ratio raise concerns.Highlights
Economic Recovery and Inflation Moderation
Argentina experienced a process of inflation moderation throughout 2024, with prospects for reducing inflation improving each month. The forecast for 2025 is an inflation rate converging around 30% or less.
Country Risk Collapse
Country risk decreased significantly from 1,900 bps to less than 700 bps by the end of 2024.
Increase in Market Share
BBVA Argentina's consolidated market share of private sector loans improved to 11.31% from 9.35% a year ago.
Digital Channel Growth
New customer acquisition through digital channels reached 88% by the end of December 2024, up from 78% a year ago.
Asset Quality Performance
Non-performing loans (NPLs) remained low at 1.13%, with BBVA being one of the lowest in the system.
Loan Portfolio Growth
Private sector loans increased by 28.7% quarter-over-quarter and 75% year-over-year.
Lowlights
Decrease in Net Income and Operating Results
Inflation-adjusted net income decreased by 39.6% quarter-over-quarter, with a 48.1% fall in quarterly operating results due to lower operating income and higher operating expenses.
Decline in Net Interest Income
Net interest income fell by 17.3% year-over-year due to a fall in income from public securities and lower income from loans.
Operating Expense Increase
Personnel expenses and operating expenses increased, impacting overall profitability.
Efficiency Ratio Deterioration
The efficiency ratio increased to 61.8% from 59.7% in the previous quarter, due to a decrease in income.
Company Guidance
During the BBVA Argentina 4Q '24 and Fiscal Year 2024 results conference call, the guidance provided highlighted several key metrics and expectations for 2025. BBVA Argentina anticipates a significant economic recovery with GDP growth expected to be around 5.5% in 2025, following a 1.8% decline in 2024. Inflation is projected to converge to approximately 30% in 2025. The company expects private loans to grow between 40% and 45% in real terms, with BBVA aiming for a growth rate of 60% to 65% in real terms. The bank's net income for 2024 was ARS357.7 billion, slightly lower than the previous year, with an annualized ROE of 12.5% and an ROA of 2.5%. BBVA also reported a decrease in their net interest income by 17.3% year over year, primarily due to lower interest rates and inflation impacts on CPI-linked bonds. The bank's non-performing loans (NPLs) remained low at 1.13%, indicating strong asset quality. Additionally, BBVA aims to continue its digital transformation, with 88% of new customer acquisitions occurring through digital channels by the end of 2024.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.