On the Year-to-Date Returns of Exchange-Listed Foreign Bank ADRs

Some of the foreign stocks trading on the US exchanges have performed very well so far this year. The S&P 500 index is up by over 10% YTD and the KBW Nasdaq Bank Index which is one trackers for bank stocks has increased by 9% YTD. Among the foreign bank stocks, Argentinean banks have soared as the newly elected President Javier Milei is restructuring the fundamentals of the economy and bring its soaring inflation under control. The three argentine bank ADRs – Banco Macro(BMA), Grupo Financiero Galicia(GGAL) and Banco BBVA Argentina S.A. (BBAR) – are up by 77% to over 95%. The following table shows the YTD returns of exchange-listed foreign bank ADRs:

S.No.Company NameTickerStock price as of May 10, 2024 closeYear-to-date Change (%)Country
1Banco MacroBMA $54.67 95.47%Argentina
2Grupo Financiero GaliciaGGAL $32.37 85.87%Argentina
3Banco BBVA Argentina S.A.BBAR $9.68 77.57%Argentina
4NatWestNWG $7.76 37.48%United Kingdom
5Barclays BankBCS $10.27 30.20%United Kingdom
6KB Financial GroupKB $53.68 27.29%Korea
7Deutsche Bank DB $16.17 19.41%Germany
8Sumitomo Mitsui FinancialSMFG $11.36 18.29%Japan
9Banco SantanderSAN $4.80 17.63%Spain
10Mitsubishi UFJ FinancialMUFG $9.91 16.26%Japan
11ICICI BankIBN $27.55 15.73%India
12Banco Bilbao Vizcaya ArgentariaBBVA $10.46 14.16%Spain
13Mizuho FinancialMFG $3.85 13.66%Japan
14HSBCHSBC $43.65 9.79%United Kingdom
15Shinhan FinancialSHG $33.72 9.26%Korea
16Bancolombia CIB $32.95 8.84%Colombia
17Lloyds Banking GroupLYG $2.57 7.95%United Kingdom
18Woori Financial Group Inc.WF $31.09 2.32%Korea
19Banco de ChileBCH $22.01 -4.03%Chile
20Banco Santander ChileBSAC $17.91 -7.44%Chile
21Itau UnibancoITUB $6.10 -10.07%Brazil
22Banco Santander BrasilBSBR $5.65 -12.21%Brazil
23HDFC BankHDB $58.14 -12.25%India
24Banco BradescoBBD $2.72 -22.00%Brazil

Source: BNY Mellon

Note: The returns shown above are as of market close May 10, 2024 and do NOT include dividends.

Brazilian banks are the in the red YTD. Brazil is known as the “Country of the Future” and it never seems to be able to unshackle itself from an emerging market to a developed market. Due to political issues and other factors, even rising copper prices haven’t helped Chilean banks Banco de Chile (BCH) and Banco Santander- Chile (BSAC) stay in positive territory this year.

It remains to be see how these banks perform thru the rest of 2024.

Disclosure: Long BCH, ITUB, BBD, CIB, SAN and BBVA

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