After a Tough Year, This Emerging-Market Bank Gets Right-Sized With a $4 Million Sale

On February 2, PING Capital Management reported selling 269,600 shares of Banco BBVA Argentina (NYSE:BBAR), an estimated $3.87 million trade based on quarterly average pricing.

What happened

According to a February 2 SEC filing, PING Capital Management reduced its position in Banco BBVA Argentina (NYSE:BBAR) by 269,600 shares. The estimated transaction value was $3.87 million, calculated using the average closing price during the fourth quarter. Meanwhile, the fund’s quarter-end BBAR position decreased in value by $5.37 million, a figure that incorporates both share sales and price movements over the period.

What else to know

Following the reduction, BBAR accounted for 4.1% of the fund’s 13F AUM.

Top holdings include:

• NYSE: YPF: $70.46 million (28.1% of AUM)
• NASDAQ: GGAL: $24.32 million (9.7% of AUM)
• NYSEMKT: KWEB: $16.85 million (6.7% of AUM)
• NYSEMKT: FXI: $14.36 million (5.7% of AUM)

As of January 30, BBAR shares were priced at $20.22, down 9.3% over the past year and underperforming the S&P 500’s roughly 14% gain in the same period.

Company overview

Company snapshot

• Banco BBVA Argentina offers a full suite of retail and corporate banking products, including checking and savings accounts, time deposits, consumer and secured loans, credit cards, mortgages, insurance, and investment solutions.
• The company operates a broad physical and digital distribution network to provide banking, investment, and insurance products, including through mobile and internet banking and a wide network of branches and ATMs.
• It serves individual consumers, small and medium-sized enterprises, and large corporations operating in Argentina, with a focus on both retail and institutional clients.

Banco BBVA Argentina is a leading financial institution in Argentina, operating an extensive network of branches and digital channels to deliver comprehensive banking services. The company leverages its strong brand and diversified product offering to serve a wide customer base across retail, SME, and corporate segments. Its strategy emphasizes digital innovation and customer-centric solutions to maintain competitive positioning in the Argentine banking sector.

What this transaction means for investors

This move shows how emerging-market risk can be managed when fundamentals are improving but volatility refuses to cooperate. Plus, it’s important to note that cutting exposure here is not about exiting Argentina. It is about keeping individual positions aligned with portfolio construction.

Banco BBVA Argentina’s operating picture remains mixed. In the third quarter, the bank reported inflation-adjusted net income of AR$38.1 billion, down a sharp 39.7% quarter over quarter and 70.9% year over year, as higher interest rates pressured margins and loan loss provisions rose. Net interest margin fell to 16.7%, while the non-performing loan ratio climbed to 3.28%, driven largely by stress in the retail book. At the same time, deposits and private-sector loans continued to grow in real terms, and the bank maintained a 16.7% capital ratio, more than double regulatory minimums.

More broadly, this portfolio is heavily concentrated in Argentine exposure, with YPF and another domestic bank together accounting for nearly 40% of assets. Against that backdrop, trimming a single financial holding after a period of underperformance looks like risk control rather than lost conviction.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.