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Banco BBVA Argentina (BBAR)
NYSE:BBAR
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Banco BBVA Argentina
(NYSE:BBAR)
74Outperform
Banco BBVA Argentina (BBAR) vs. S&P 500 (SPY)
Market Cap
$4.47B
Dividend Yield7.53%
Average Volume (3M)719.49K
Price to Earnings (P/E)11.3
Beta (1Y)0.91
Revenue Growth-40.21%
EPS Growth-16.07%
CountryUS
Employees6,289
SectorFinancial
Sector Strength87
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.28
Shares Outstanding204,236,700
10 Day Avg. Volume550,014
30 Day Avg. Volume719,491
Financial Highlights & Ratios
PEG Ratio1.32
Price to Book (P/B)1.92
Price to Sales (P/S)0.00
P/FCF Ratio-2.56
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 Upside23.06% 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 Financial Statement Overview
Summary
Banco BBVA Argentina displays strong financial performance with impressive revenue growth and profitability. The balance sheet reflects a stable financial structure with low leverage, enhancing resilience. However, the cash flow statement highlights potential challenges in free cash flow generation, suggesting a need for careful cash management. Overall, the financials are robust with a positive growth trajectory, though attention to cash flow management is advisable.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 | 1.92T | 424.49B | 161.12B | 108.77B | Gross Profit |
| 3.55T | 3.69T | 424.49B | 161.12B | 108.77B | EBIT |
| 2.56T | 1.12T | 62.74B | 21.10B | 20.67B | EBITDA |
| 0.00 | 0.00 | 72.59B | 0.00 | 0.00 | Net Income Common Stockholders |
| 353.24B | 156.86B | 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
Positive
21.94
Price Trends
19.02
Positive
19.88
Positive
16.18
Positive
Market Momentum
0.52
Negative
64.48
Neutral
83.87
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBAR, the sentiment is Positive. The current price of 21.94 is above the 20-day moving average (MA) of 20.39, above the 50-day MA of 19.02, and above the 200-day MA of 16.18, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 64.48 is Neutral, neither overbought nor oversold. The STOCH value of 83.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $1.15B | 9.08 | 17.21% | 3.39% | 0.94% | -8.61% | |
75 Outperform | $2.68B | 11.08 | 8.63% | 3.31% | -0.60% | 39.49% | |
74 Outperform | $6.08B | 16.74 | 9.05% | 8.74% | -46.30% | -79.35% | |
74 Outperform | $4.47B | 11.29 | 16.83% | 7.53% | -40.21% | -16.07% | |
68 Neutral | $7.18B | 10.70 | 12.54% | 2.55% | 9.33% | 43.64% | |
64 Neutral | $12.74B | 9.85 | 7.88% | 17015.07% | 12.17% | -6.02% | |
59 Neutral | $8.74B | 10.88 | 12.36% | 1.89% | 11.01% | 6.63% |
* Financial Sector Average
Performance Comparison
BBAR
Banco BBVA Argentina
21.94
11.99
120.50%
BMA
Banco Macro SA
93.00
31.92
52.26%
BKU
BankUnited
35.80
6.67
22.90%
BPOP
Popular
104.07
13.91
15.43%
PFBC
Preferred Bank
85.86
9.03
11.75%
WAL
Western Alliance
79.67
15.74
24.62%
Banco BBVA Argentina Earnings Call Summary
Earnings Call Date:Mar 05, 2025
(Q4-2024)
| % Change Since: 15.35%|
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.Q4-2024 Updates
Positive Updates
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.
Negative Updates
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.