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Banco BBVA Argentina (BBAR)
NYSE:BBAR
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Banco BBVA Argentina
(NYSE:BBAR)
Rating:76Outperform
Price Target:
$20.50
â–²(18.29%Upside)
Banco BBVA Argentina (BBAR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.70B
Dividend Yield34.35%
Average Volume (3M)792.54K
Price to Earnings (P/E)9.4
Beta (1Y)0.86
Revenue Growth-48.81%
EPS Growth0.18%
CountryUS
Employees6,289
SectorFinancial
Sector Strength74
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.34
Shares Outstanding204,236,700
10 Day Avg. Volume914,385
30 Day Avg. Volume792,539
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)3.20
Price to Sales (P/S)0.00
P/FCF Ratio8.32
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 Upside55.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Banco BBVA Argentina Business Overview & Revenue Model
Company DescriptionBanco BBVA Argentina S.A. (BBAR) is a leading financial institution in Argentina, providing a wide array of banking products and services to individuals, small and medium-sized enterprises (SMEs), and large corporations. The bank operates in various sectors, including retail banking, corporate banking, and investment banking. Its core offerings include savings and checking accounts, personal and business loans, mortgages, credit cards, and wealth management services.
How the Company Makes MoneyBanco BBVA Argentina makes money primarily through interest income generated from its lending activities, including personal loans, mortgages, and business loans. The bank also earns revenue from fees and commissions associated with its various banking services, such as account maintenance fees, transaction fees, and credit card fees. Additionally, BBVA Argentina benefits from its investment banking operations, which include underwriting and advisory services. The bank's strategic partnerships and collaborations with financial technology companies and other institutions enhance its product offerings and contribute to its earnings by expanding its customer base and improving service delivery.
Banco BBVA Argentina Earnings Call Summary
Earnings Call Date:May 21, 2025
(Q1-2025)
| % Change Since: -20.58%|
Next Earnings Date:Aug 20, 2025
Earnings Call Sentiment Neutral
The earnings call presented strong financial performance with significant growth in net income, digital sales, and loan portfolio. However, challenges in liquidity, decreasing net interest margins, and limited future growth in dollar activity indicate some areas of concern. Overall, the highlights slightly outweigh the lowlights, but challenges remain.Q1-2025 Updates
Positive Updates
Strong Economic Recovery and Growth Expectations
Economic activity is expected to expand by around 5.5% in 2025 after a 1.7% decline in 2024, indicating signs of recovery.
Digital Channel Success
New customer acquisition through digital channels reached 86%, up from 81% a year ago. Retail digital sales represent 93% in units and 86% in monetary value.
Significant Increase in Net Income and Fee Income
BBVA Argentina's inflation-adjusted net income increased by 16.2% quarter-over-quarter, with a 48.3% increase in net income totaling ARS99.8 billion. Fee income increased by 20.7% quarter-over-quarter.
Loan Portfolio Growth
Private loans increased by 11.2% quarter-over-quarter, with significant growth in consumer loans (22.9%), overdrafts (18.4%), and mortgages (23.1%).
Strong Capital and Solvency Indicators
Capital ratio reached 21.5% with a capital excess of 161.3%, showing strong solvency indicators.
Negative Updates
Challenges in Liquidity and Deposit Growth
Deposit growth was revised downwards to 25% in real terms due to potential liquidity concerns stemming from restrictive monetary policy.
Decreasing Net Interest Margins
Net interest margins have decreased, with expectations of further decreases due to declining inflation rates.
Limited Growth in Dollar Activity
Despite a 25% growth in dollar-denominated loans, future growth is expected to be limited due to conservative funding policies and uncertain regulatory announcements.
Company Guidance
During BBVA Argentina's First Quarter 2025 Results Conference Call, the company provided several key metrics and guidance regarding its financial performance and future expectations. BBVA Argentina's inflation-adjusted net income for Q1 2025 was ARS81.6 billion, reflecting a 16.2% increase quarter-over-quarter, with a quarterly ROE of 11.5% and a ROA of 2%. The bank reported a 56.9% increase in quarterly operating results, driven by higher income from fees and improved net interest income. Despite a 10.7% lower net income from the net monetary position, the bank experienced an 11.2% quarter-over-quarter increase in private loans, totaling ARS9.2 trillion. Additionally, the bank's capital ratio reached 21.5%, with capital excess of the regulatory requirement at 161.3%. For the remainder of 2025, BBVA revised its real loan growth projection to 45%-50% and deposit growth to 25%, while expecting an ROE in the mid-to-low teens. The bank also anticipates a GDP growth of 5.5% and inflation converging to around 35% by year-end.Banco BBVA Argentina Financial Statement Overview
Summary
Banco BBVA Argentina demonstrates robust financial performance with strong revenue growth and profitability. The balance sheet is stable with low leverage, enhancing resilience. However, challenges in free cash flow generation suggest the need for careful cash management.Income Statement
Banco BBVA Argentina has shown a substantial revenue growth rate from 2023 to 2024, indicating strong expansion. The gross profit margin remains healthy as all revenues translate into gross profit. The net profit margin has also improved, reflecting enhanced profitability. Despite EBITDA data being unavailable, the EBIT margin is strong, suggesting efficient operational management. Overall, the income statement reveals robust financial performance with significant growth trajectory.85
Very Positive
Balance Sheet
The balance sheet of Banco BBVA Argentina is characterized by a strong equity ratio, indicating a solid financial foundation with a significant portion of assets financed by equity. The debt-to-equity ratio is low, reflecting conservative leverage and reduced financial risk. However, the return on equity (ROE) is moderate, suggesting room for improving shareholder returns. Overall, the balance sheet demonstrates financial stability and prudent risk management.78
Positive
Cash Flow
The cash flow statement indicates a high operating cash flow to net income ratio, suggesting that net income is well-supported by cash from operations. However, the free cash flow has experienced a significant decline, indicating potential challenges in cash generation. The bank's ability to convert net income into free cash flow is under pressure, which could impact future financial flexibility. Overall, while operational cash flows are robust, free cash flow dynamics need attention.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.55T | 7.55T | 4.61T | 161.12B | 288.96B |
| Gross Profit | ||||
| 3.42T | 3.69T | 2.65T | 904.85B | 108.77B |
| EBIT | ||||
| 2.56T | 1.12T | 375.93B | 84.79B | 20.67B |
| EBITDA | ||||
| 520.69B | 743.02B | 72.59B | 118.65B | 0.00 |
| Net Income Common Stockholders | ||||
| 353.24B | 341.58B | 58.84B | 18.31B | 12.04B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.07T | 1.99T | 913.64B | 385.42B | 279.68B |
| Total Assets | ||||
| 14.72T | 6.11T | 1.96T | 1.03T | 688.97B |
| Total Debt | ||||
| 1.11T | 64.41B | 24.10B | 15.14B | 1.17B |
| Net Debt | ||||
| -956.73B | -1.08T | -272.20B | -203.21B | -150.94B |
| Total Liabilities | ||||
| 12.10T | 4.70T | 1.59T | 867.58B | 584.21B |
| Stockholders Equity | ||||
| 2.58T | 1.40T | 360.48B | 159.41B | 102.62B |
| Cash Flow | Free Cash Flow | |||
| -5.34T | 559.08B | 94.07B | 108.67B | -13.29B |
| Operating Cash Flow | ||||
| -5.17T | 601.23B | 110.48B | 116.71B | -10.14B |
| Investing Cash Flow | ||||
| -162.40B | -43.00B | -27.15B | -7.50B | -2.70B |
| Financing Cash Flow | ||||
| 7.89T | -26.46B | -5.92B | -5.37B | -10.13B |
Banco BBVA Argentina Technical Analysis
Negative
17.33
Price Trends
19.56
Negative
19.59
Negative
17.40
Negative
Market Momentum
-0.71
Positive
37.37
Neutral
33.26
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 17.33 is below the 20-day moving average (MA) of 19.45, below the 50-day MA of 19.56, and below the 200-day MA of 17.40, indicating a bearish trend. The MACD of -0.71 indicates Positive momentum. The RSI at 37.37 is Neutral, neither overbought nor oversold. The STOCH value of 33.26 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $3.70B | 9.42 | 15.46% | 34.35% | -48.81% | 0.18% | |
76 Outperform | $1.09B | 8.67 | 17.21% | 3.67% | 0.94% | -8.61% | |
74 Outperform | $4.80B | 1,071.39 | 0.11% | 29.07% | -46.30% | -79.35% | |
74 Outperform | $2.56B | 10.57 | 8.63% | 3.67% | -0.61% | 39.49% | |
71 Outperform | $7.15B | 10.78 | 12.54% | 2.70% | 9.33% | 43.64% | |
64 Neutral | $12.87B | 9.76 | 7.85% | 78.04% | 12.07% | -7.94% | |
61 Neutral | $7.98B | 9.93 | 12.36% | 2.13% | 11.01% | 6.63% |
* Financial Sector Average
Performance Comparison
BBAR
Banco BBVA Argentina
17.33
7.94
84.56%
BMA
Banco Macro SA
73.39
14.09
23.76%
BKU
BankUnited
33.98
7.13
26.55%
BPOP
Popular
104.42
21.92
26.57%
PFBC
Preferred Bank
80.84
8.48
11.72%
WAL
Western Alliance
72.25
13.84
23.69%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.