Bank of America, JPMorgan Chase and Citigroup announced that they have abandoned a planned $20 billion sovereign support package for Argentina and will instead provide a $5 billion repurchase (repo) facility to help the country meet a roughly $4 billion debt payment due in January. The new arrangement is a short‑term, collateral‑backed loan that limits the banks’ direct exposure to Argentine sovereign debt while freeing capital for other opportunities.
Argentina’s economy remains fragile. Inflation fell to 31.8 % in November 2025, the lowest in more than seven years, but the peso is still overvalued and foreign reserves are depleted. The country’s GDP growth has slowed, and unemployment remains high, creating a challenging backdrop for the banks’ decision to reduce risk exposure.
The three banks posted strong Q3 2025 earnings that underscored their financial resilience. Bank of America reported net income of $8.5 billion, up from $6.9 billion a year earlier, and earnings per share of $1.06, beating the consensus of $0.95 by $0.11 (11.6 %). Revenue rose to $28.09 billion, exceeding expectations of $27.48 billion by $0.61 billion (2.2 %). JPMorgan Chase posted net income of $14.4 billion and EPS of $5.07, while Citigroup reported net income of $3.8 billion and EPS of $1.86. All three banks beat analyst forecasts, driven by robust investment‑banking fees, strong trading activity, and disciplined cost management.
The decision to scale back the Argentina package reflects a cautious risk assessment. JPMorgan CEO Jamie Dimon noted that the larger loan “may not be necessary,” and the banks cited a lack of clear guarantees and collateral from the U.S. Treasury as a key concern. By limiting exposure to a short‑term repo, the banks reduce potential losses if Argentina’s fiscal situation deteriorates further, while maintaining the ability to support the country’s debt service needs.
The move has had a modest impact on Argentine markets: the peso weakened 1.2 % against the U.S. dollar and the Global X MSCI Argentina ETF (ARGT) fell 1.2 %. The banks’ strong earnings and capital ratios suggest that the reduced exposure will not materially affect their overall financial health, and the freed capital can be deployed in other growth areas. Management emphasized continued focus on strategic investments and cost discipline, signaling confidence in maintaining profitability amid global economic uncertainty.
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