Market Overview

Credit Suisse Analyst Sees Exceptions Among Latin American Banks

Share:

Slower growth and lower commodity prices spell diminished returns for the Latin American banking sector, an analyst said Wednesday.

But Credit Suisse's Marcelo Telles said certain institutions in the region "still offer attractive potential."

Telles upgraded both Mexico's Grupo Financiero Inbursa SAB de CV (OTC: GPFOY) and Banco Santander-Chile (ADR) (NYSE: BSAC) to Outperform from Neutral.

The sector as a whole, however, will show slower-than-expected earnings growth and Telles sees consensus estimates falling along with commodities prices and a bull market for the dollar.

Although investors often pursue growth premiums in developing markets, Latin American banks "aren't the high-growth places they used to be," Telles said, noting that loan growth has been slowing in the region since 2012.

Preferred countries currently: Mexico, Chile and Peru.

Economic ties to the U.S. cushion Mexico while Chile, although exposed to falling copper prices, is a net importer of oil and stands to gain from lower costs. Peru, meanwhile, will see fast export growth from a relatively low level.

Least loved are Brazil and Columbia, where Telles sees the "worst risk-reward" ratio.

The analyst also upgraded Grupo Fin Banorte SE (OTC: GBOOF) and Santander Mexico Financial Group SAB de CV (NYSE: BSMX), to Neutral from Underperform.

Telles downgraded Bancolombia SA (NYSE: CIB) to Neutral from Outperform.

Latest Ratings for BSAC

DateFirmActionFromTo
Mar 2019JP MorganDowngradesOverweightNeutral
Sep 2018JP MorganUpgradesNeutralOverweight
Nov 2016Credit SuisseUpgradesNeutralOutperform

View More Analyst Ratings for BSAC
View the Latest Analyst Ratings

Posted-In: Credit Suisse Marcelo TelleAnalyst Color Upgrades Downgrades Analyst Ratings

 

Related Articles (CIB + BSAC)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
BTUBMO CapitalInitiates Coverage On34.0
NVROBMO CapitalUpgrades67.0
FDXMorgan StanleyMaintains148.0
NVROBank of AmericaUpgrades70.0
WPMorgan StanleyDowngrades112.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Trader Essentials
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Boeing Sees Strong Demand Amid Low Oil Prices

Apple Could Plummet Below $105 Because It's In 'No-Man's Land,' Expert Says