All Latin American Bank Stocks Are In The Red

Among the foreign bank stocks trading on the US exchanges, all the Latin American bank stocks are down year-to-date as of last Friday (July 16, 2021) in addition to Credit Sussie (CS) of Switzerland. Credit Sussie is down about 24% due to multiple corruption and other charges currently ongoing against the bank. Chilean banks plunged dramatically a few months ago due to political issues there.  South America’s economic powerhouse with a strong democratic political system has been rocked by protests last year and continues to struggle despite a powerful rally in copper prices this year. Chile is the world’s largest copper exporter.

Update (9/4/22): On The Performance of Foreign Foreign Bank Stocks Year-to-Date

Similarly Colombia has also suffered its share of protests in the past few months and the country is struggling with the onslaught of the raging Covid-19. Brazil continues to prove that it is “the country of the future” and always remain so. Argentina is unable to shake-off its economic and structural issues for many years now and will remain the basket case of mismanagement. Ironically  the country has the largest concentration of Italians that immigrated there many decades ago. Italy used to a poster child for economic problems just a few years ago during the many European sovereign debt crisis. Italy was part of the “PIIGS” countries which included Portugal, Ireland, Greece and Spain.

Overall political risk is a major in emerging market investing and Latin American  proves that point so clearly.

The year-to-date returns of Latin American bank stocks trading on the US exchanges are shown below:

S.No.Bank NameTickerLast Friday Close PriceYear-to-Date Change(%)
1Itau CorpbancaITCB$3.65-26.26%
3Credicorp LtdBAP$118.80-24.62%
4Banco de ChileBCH$17.66-13.35%
5Banco BradescoBBD$4.73-10.08%
6Banco Santander BrasilBSBR$7.79-9.84%
7Banco MacroBMA$14.10-9.44%
8Itau UnibancoITUB$5.64-7.39%
9Grupo Financiero GaliciaGGAL$8.18-6.41%
10Banco Santander ChileBSAC$17.83-6.11%
11Banco BBVA Argentina S.A.BBAR$3.14-2.18%
12Foreign Trade Bank of Latin America IncBLX$15.23-2.06%

Source: BNY Mellon

Disclosure: Long CIB, ITCB, BBD, ITUB and BCH

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