PING Capital Management sold 269,600 shares of Banco BBVA Argentina (NYSE:BBAR) for an estimated $3.87 million, based on average quarterly pricing. The fund’s BBAR position decreased in value by $5.37 million, accounting for 4.1% of its 13F AUM. Top holdings include YPF, GGAL, KWEB, and FXI.

Banco BBVA Argentina offers a range of retail and corporate banking products, serving individual consumers, SMEs, and large corporations in Argentina. The company operates through physical and digital channels, providing comprehensive financial services like checking accounts, loans, credit cards, and investment solutions.

In the third quarter, Banco BBVA Argentina reported inflation-adjusted net income of AR$38.1 billion, down 39.7% quarter over quarter and 70.9% year over year. Higher interest rates and increased loan loss provisions affected margins, while the non-performing loan ratio rose to 3.28%. Deposits and private-sector loans continued to grow, with a strong capital ratio of 16.7%.

The move by PING Capital Management to reduce its exposure to Banco BBVA Argentina reflects risk management in an uncertain market. The company’s underperformance and concentration in the Argentine market prompted the sale, aligning with the fund’s portfolio construction strategy. This adjustment is not about exiting Argentina but maintaining a balanced position.

Banco BBVA Argentina’s stock price stood at $20.22 as of January 30, reflecting a 9.3% decline over the past year. Despite the challenging operating environment, the company remains focused on digital innovation and customer-centric solutions to stay competitive in the Argentine banking sector. This strategic approach aims to address emerging-market risks while improving fundamentals.

Read more at Yahoo Finance: After a Tough Year, This Emerging-Market Bank Gets Right-Sized With a $4 Million Sale