As our regular readers know, we have been covering Argentinian banks for quite a while now. Our bullish stance on Banco Macro (BMA) and Grupo Galicia (GGAL) has been largely driven by the fact that credit penetration in Argentina, measured as total banking loans against the country's GDP, remains one the lowest in the world, suggesting that the sector will continue to deliver healthy growth.
With that being said, there are several company-specific factors that could deteriorate investment sentiment towards these stocks. While we are still bullish on Banco Macro, we