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The big global banks earn more than ever: how to bet on them from Argentina

2021-08-06T13:48:14.808Z


International investment banking is one of the sectors most favored by the post-pandemic economic recovery. Argentines can get on this investment with pesos


Ana Clara Pedotti

08/06/2021 10:38

  • Clarín.com

  • Economy

Updated 08/06/2021 10:38

Unlike the local financial system, whose profit margins were hit by the pandemic and recession,

the world's big banks do not stop breaking profit records.

In the latest earnings report, entities such as

Goldman Sachs or Morgan Stanley

reported record returns.

Also European banks, such as

Barclays or Deutsche Bank

, benefited from the economic recovery this year.

Global investors do not want to miss these improvements:

the indices that measure the performance of this sector, such

as the Dow Jones that tracks North American banks, have already had

increases of close to 60% so far this year.

Jamie Dimon, CEO of JP Morgan,

during the presentation of the latest balance sheet said that “the

consumer and wholesale balance sheets remain exceptionally strong

as the economic outlook continues to improve.

In particular, net provisions, which fell 53%, were better than expected, reflecting the increasingly healthy condition of our consumers and clients. "

Meanwhile,

Goldman Sachs'

second-quarter earnings

easily beat the consensus estimate as

investment banking revenues hit their second-highest quarterly level,

helped by its financial advisory, corporate lending and investment banking units. .

"This good performance we saw on the balance sheet, adds to the relatively recent news that

Apple will use Goldman Sachs, its partner since 2019 for the Apple Card credit card,

as a lender for the service loans to allow users to pay the

bills.

purchases in installments (a service known as buy now pay later) ", explained Pablo Haro, from the SBS Group.

An investment in growth

For Argentines, betting on this sector, which still has room to deepen its growth, is now easier.

The

Cedears (Argentine Certificates of Deposit)

are securities that are listed on the local market and that represent shares of foreign companies.

They are instruments that, in recent months, have taken a central role in the City, since they provide hedging against the price jump and the devaluation of the peso, without the volatility that Argentine assets usually present.

Therefore,

its volume has already exceeded that of local shares.

Argentine investors can choose from a

menu that includes 257 companies,

but

the cedears that replicate bank actions are the most recommended by specialists

when building a portfolio.

Lucas Yatche, from Liebre Capital, stated: "North American stocks corresponding to the financial sector continue to gain attractiveness. If we look at the

XLF (ETF that replicates the financial sector in the United States) we observe accumulated increases that exceed 25% so far this year - and almost 100% from the 2020 lows

. "

Going forward, according to the specialist, banks will continue to lead the improvements, helped by "high inflation levels and a possible widening of spreads in North American rates that could continue to favor the sector."

"We recommend banks such as

Bank of America, JP Morgan and Citi.

Renowned companies with very good prospects for the future that would benefit from the extension of the economic recovery expected for the United States," he added.

For his part, Haro stressed that "

investing in the financial sector is fundamental from a diversification point of view

" and explained: "This sector allows us to gain exposure very efficiently to the global economic rebound - given that banks lend to companies in the real economy - but they also give us the possibility to participate in more stable businesses (and in some cases anti-cyclical) such as investment banking, asset management and trading. "

In Haro's portfolio, local investors cannot miss: "JP Morgan and Bank of America within the financial sector. For investors seeking to position themselves in a bank with less cyclical exposure, we recommend Goldman Sachs," he said.

NE

Look also

The buying and selling of Argentine companies, in one of its worst moments

Despite the drop in prices, the offices are still empty

Source: clarin

All business articles on 2021-08-06

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