6-K
Banco BBVA Argentina S.A. (BBAR)
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of November 2024
Commission File Number: 001-12568
BBVA Argentina Bank S.A.
(Translation of registrant’s name into English)
111 Córdoba Av, C1054AAA
Buenos Aires, Argentina
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
| Form 20-F | X | Form 40-F |
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| Yes | No | X |
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Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
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If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
Banco BBVA Argentina S.A.
TABLE OF CONTENTS
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| 1. | Banco BBVA Argentina S.A. reports consolidated third quarter earnings for fiscal year 2024. |
Banco BBVA ArgentinaS.A. announces Third Quarter 2024 results
Buenos Aires,November 20, 2024 – Banco BBVA Argentina S.A (NYSE; BYMA; MAE: BBAR; LATIBEX: XBBAR) (“BBVA Argentina” or “BBVA” or “the Bank”) announced today its consolidated results for the third quarter (3Q24), ended on September 30, 2024.
As of January 1, 2020, the Bank started to inform its inflation adjusted results pursuant to IAS 29 reporting. To facilitate comparison, figures of comparable quarters of 2023 and 2024 have been updated according to IAS 29 reporting to reflect the accumulated effect of inflation adjustment for each period up to September 30, 2024.
3Q24 Highlights
| · | BBVA Argentina’s inflation adjusted net income<br>in 3Q24 was $99.2 billion, 21.6% below the $126.6 billion reported on the second quarter of 2024 (2Q24), and 224.8% above than the $30.5<br>billion reported on the third quarter of 2023 (3Q23). Inflation adjusted accumulated net income for the first nine months of 2024 was<br>$271.2 billion, 15.7% higher than the accumulated net result of $234.5 billion in the first nine months of 2023. |
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| · | In 3Q24, BBVA Argentina posted an inflation adjusted average return on assets (ROAA)<br>of 3,4% and an inflation adjusted average return on equity (ROAE) of 16,9%. In the nine months of 2024, BBVA Argentina posted an inflation<br>adjusted ROAA of 2.9% and an inflation adjusted ROAE of 13.9%. |
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| · | Operating income in 3Q24 was $294.0 billion, 41.3% lower than the $500.9 billion<br>recorded in 2Q24 and 43.1% lower than the $517.0 billion recorded in 3Q23. In the first nine months of 2024, the accumulated operating<br>income was $1.63 trillion, 13.1% above the $1.45 trillion recorded in the same period of 2023. |
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| · | In terms of activity, total consolidated financing<br>to the private sector in 3Q24 totaled $5.5 trillion, increasing 26.5% in real terms compared to 2Q24, and 16.4% compared to 3Q23. In the<br>quarter, the variation was driven by an overall growth in all lines, especially in discounted instruments by 50.9%, in consumerloans by 51.0% and in credit cards by 12.9%. BBVA’s consolidated market share of private sector loans reached 10.35%<br>as of 3Q24. |
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| · | Total consolidated deposits in 3Q24 totaled $8.5 trillion,<br>increasing 30.9% in real terms during the quarter, and falling 6.4% YoY. Quarterly increase was mainly explained by an increment in time<br>deposits and savings accounts, by 35.5% and 48.8% respectively. The Bank’s consolidated market share of private deposits reached<br>8.67% as of 3Q24. |
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| · | As of 3Q24, the non-performing loan ratio (NPL) reached<br>1.18%, with a 152.98% coverage ratio. |
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| · | The accumulated efficiency ratio in 3Q24 was 59.7%, improving compared to 2Q24’s<br>59.9%, and 3Q23’s 63.8%. |
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| · | As of 3Q24, BBVA Argentina reached a regulatory capital ratio of 22.2%, entailing<br>a $1.32 trillion or 172.4% excess over minimum regulatory requirement. Tier I ratio was 22.2%. |
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| · | Total liquid assets represented 67.3% of the Bank’s<br>total deposits as of 3Q24. |
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Message from the CFO
“The significant fiscal consolidationand relative exchange rate stability have contributed to a process of moderation of inflation throughout 2024. Furthermore, after a sharpcontraction in the first half of the year, there are incipient signs of a recovery in economic activity, mostly in line with BBVA Research'sexpectations, which continue to forecast a 4.0% decline in GDP in 2024, followed by an expansion of 6.0% in 2025. As for inflation, expectationsfor further reduction have improved. A 120% inflation is estimated by year-end, versus the 211% on the same period of 2023. BBVA Researchcontinues to expect within its base scenario, gradual easing of FX market restrictions during 4Q24 and 1Q25, combined with a final declinein the PAIS tax announced for December. Additionally, some signs of recovery start to appear, such as industrial activity which has increased12% between June and September of 2024*^1^**.*
As of September 2024, private loans in pesosfor the system grew 226% YoY, while BBVA Argentina increased its private loan portfolio in pesos by 263%^2^.Both the System and BBVA loan growth exceeded that of inflation (which reached 209% YoY in September 2024). Taking this into consideration,we can continue to see a real monthly growth that started in April 2024 for BBVA Argentina and in May for the System. Consolidated marketshare of total private loans increased 100 bps from 9.35% as of September 2023, to 10.35% by September 2024, sustaining a two-digit figureand growing 50 bps year to date.
In line with this, the participation of loansin BBVA Argentina’s balance sheet has expanded for two quarters consecutively, going from 40% to 43% over assets. The System showsa ratio of loans over assets of 32% as of August 2024 (latest information available).
On the other hand, as of June 15, 2024, theBank began to offer UVA adjusted mortgage credit lines for the purchase of a first or second house of permanent use. We believe that thereturn of these products to the market represents a sign of recovery in expectations, facing a general growth in credit in the country.
Concerning consolidated private depositsin pesos, the system grew 121% while the Bank grew 157% YoY, unable to beat inflation in the year in both cases. Consolidated market shareof deposits for BBVA Argentina was 8.67%, 154 bps higher YoY from 7.13%, and growing 188 bps YTD.
It is important to mention that deposit growthwas directly affected by the fiscal amnesty. The Bank has perceived in terms of fiscal amnesty accounts a net of USD 1.42 billion*^3^,within an estimated total of USD 13 billion in the System^4^**.Total USD deposits market share of BBVA Argentina was 10.47% in September, increasing from June’s 9.42% by 105 bps.*
On the Bank’s results, net income for3Q24 fell 21.6% QoQ, although a 15.7% accumulated increase is recorded for the first nine months of 2024. In spite of lower average interestsrates affecting margins, the accumulated ROE remained in a level of 13.9%, in line with the 13.5% recorded in the first nine months of2023. On the other hand, the accumulated efficiency ratios improved to 59.7% versus 63.8% in the same period of 2023.
As of September 2024, BBVA Argentina reachedan NPL ratio of private loans of 1.18%, below the latest available indicator for the System (August 2024) of 1.65%. In terms of liquidityand solvency, the Bank ends the quarter with ratios of 67.3% and 22.2% respectively. The greater dynamic in credit activity in the systemduring the last months, the increase in market share by BBVA, in addition to the distribution of dividends that took place in 2Q24, capitalratio as of September was lower than in June 2024.
On digitalization, our service offering hasevolved in such way that by the end of September 2024, mobile monetary transactions increased 41% compared to the same period a year back.In the year, new client acquisition through digital channels over traditional ones was 834%, while in September 2023 it was 80%.
Regarding ESG, BBVA Argentina has a corporateresponsibility with society, inherent to the Bank’s business model, which bolsters inclusion, financial education and supports scientificresearch and culture.
Lastly, the Bank actively monitors its business,financial conditions and operating results, in the aim of keeping a competitive position to face contextual challenges in a decisive yearfor the Argentine Republic.”
CarmenMorillo Arroyo, CFO at BBVA Argentina
1 Source: INDEC, Manufacturingindustrial production index, September 2024
2 Source:BCRA capital balances as of the last day of each period. Siscen information as of September 30, 2024
3 A 3500 FX Rateas of 09/30/2024 $970.92
4 Source: BBVA Research
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Safe Harbor Statement
Thispress release contains certain forward-looking statements that reflect the current views and/or expectations of Banco BBVA Argentina andits management with respect to its performance, business and future events. We use words such as “believe,” “anticipate,”“plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,”“forecast,” “guideline,” “seek,” “future,” “should” and other similar expressionsto identify forward-looking statements, but they are not the only way we identify such statements. Such statements are subject to a numberof risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materiallyfrom the plans, objectives, expectations, estimates and intentions expressed in this release. Actual results, performance or events maydiffer materially from those in such statements due to, without limitation, (i) changes in general economic, financial, business, political,legal, social or other conditions in Argentina or elsewhere in Latin America or changes in either developed or emerging markets, (ii)changes in regional, national and international business and economic conditions, including inflation, (iii) changes in interest ratesand the cost of deposits, which may, among other things, affect margins, (iv) unanticipated increases in financing or other costs or theinability to obtain additional debt or equity financing on attractive terms, which may limit our ability to fund existing operations andto finance new activities, (v) changes in government regulation, including tax and banking regulations, (vi) changes in the policies ofArgentine authorities, (vii) adverse legal or regulatory disputes or proceedings, (viii) competition in banking and financial services,(ix) changes in the financial condition, creditworthiness or solvency of the customers, debtors or counterparties of Banco BBVA Argentina,(x) increase in the allowances for loan losses, (xi) technological changes or an inability to implement new technologies, (xii) changesin consumer spending and saving habits, (xiii) the ability to implement our business strategy and (xiv) fluctuations in the exchange rateof the Peso. The matters discussed herein may also be affected by risks and uncertainties described from time to time in Banco BBVA Argentina’sfilings with the U.S. Securities and Exchange Commission (SEC) and Comisión Nacional de Valores (CNV). Readers are cautioned notto place undue reliance on forward-looking statements, which speak only as the date of this document. Banco BBVA Argentina is under noobligation and expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a resultof new information, future events or otherwise.
Information
This earnings release has beenprepared in accordance with the accounting framework established by the Central Bank of Argentina (“BCRA”), based on InternationalFinancial Reporting Standards (“I.F.R.S.”) and the resolutions adopted by the International Accounting Standards Board (“I.A.S.B”)and by the Federación Argentina de Consejos Profesionales de Ciencias Económicas (“F.A.C.P.E.”), and with thethe exclusion of the application of the IFRS 9 impairment model for non-financial public sector debt instruments.
The information in this pressrelease contains unaudited financial information that consolidates, line item by line item, all of the banking activities of BBVA Argentina,including: BBVA Asset Management Argentina S.A., Consolidar AFJP-undergoing liquidation proceeding, PSA Finance Argentina CompañíaFinanciera S.A. (“PSA”) and Volkswagen Financial Services Compañía Financiera S.A (“VWFS”).
BBVA Seguros Argentina S.A. isdisclosed on a consolidated basis recorded as Investments in associates (reported under the proportional consolidation method), and thecorresponding results are reported as “Income from associates”), same as Rombo Compañía Financiera S.A. (“Rombo”),Play Digital S.A. (“MODO”), Openpay Argentina S.A. and Interbanking S.A.
Financial statements of subsidiarieshave been elaborated as of the same dates and periods as Banco BBVA Argentina S.A.’s. In the case of consolidated companies PSAand VWFS, financial statements were prepared considering the B.C.R.A. accounting framework for institutions belonging to “GroupC”, considering the model established by the IFRS 9 5.5. “Impairment” section for periods starting as of January 1,2022, excluding debt instruments from the non-financial public sector.
The information published bythe BBVA Group for Argentina is prepared according to IFRS, without considering the temporary exceptions established by BCRA.
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Quarterly Results
| INCOME<br> STATEMENT | ||||
|---|---|---|---|---|
| In<br> millions of AR - Inflation adjusted | ∆<br> % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| Net<br> Interest Income | 760,881 | 835,026 | (39.5%) | (44.9%) |
| Net<br> Fee Income | 65,933 | 52,407 | 7.9% | 35.7% |
| Net income from measurement<br> of financial instruments at fair value through P&L | 34,757 | 25,251 | (15.6%) | 16.2% |
| Net income from write-down<br> of assets at amortized cost and at fair value through OCI | 15,327 | 12,570 | 261.1% | 340.3% |
| Foreign exchange and<br> gold gains | 22,803 | 6,612 | (70.8%) | 0.8% |
| Other operating income | 32,139 | 32,919 | (9.2%) | (11.4%) |
| Loan loss allowances | (46,591) | (23,849) | 11.5% | (73.0%) |
| Net<br> operating income | 885,249 | 940,936 | (31.0%) | (35.1%) |
| Personnel benefits | (122,958) | (131,066) | 18.1% | 23.1% |
| Adminsitrative expenses | (131,337) | (146,295) | 6.1% | 15.7% |
| Depreciation and amortization | (20,115) | (13,506) | 17.8% | (22.5%) |
| Other operating expenses | (109,972) | (133,098) | 30.9% | 42.9% |
| Operarting<br> expenses | (384,382) | (423,965) | 17.6% | 25.3% |
| Operating<br> income | 500,867 | 516,971 | (41.3%) | (43.1%) |
| Income from associates | 2,791 | 56 | (87.7%) | n.m |
| Income from net monetary<br> position | (303,670) | (469,903) | 43.9% | 63.7% |
| Net<br> income before income tax | 199,988 | 47,124 | (38.1%) | 162.9% |
| Income tax | (73,405) | (16,578) | 66.4% | (48.8%) |
| Net<br> income for the period | 126,583 | 30,546 | (21.6%) | 224.8% |
| Owners<br> of the parent | 124,475 | 29,759 | (19.9%) | 234.9% |
| Non-controlling<br> interests | 2,108 | 787 | (121.9%) | (158.6%) |
| Other<br> comprehensive Income (OCI) (1) | (117,464) | (30,103) | 37.8% | (142.8%) |
| Total<br> comprehensive income | 9,119 | 443 | 186.3% | n.m |
| (1)<br> Net of Income Tax. |
All values are in US Dollars.
BBVA Argentina 3Q24 net income was $99.12 billion, decreasing 21.6% or $27.4 billion quarter-over-quarter (QoQ) and increasing 224.8% or $68.7 billion year-over-year (YoY). This implied a quarterly ROAE of 16.9% and a quarterly ROAA of 3.4%.
The 41.3% fall in quarterly operating results were explained by a lower operating income, mainly due to (i) lower interest income, specially due to lower average market rates, as a result of a lower average monetary policy rate, (ii) lower interests from CPI linked bonds and (iii) lower results of foreign exchange and gold gains, mainly due to the Dual bond having matured. This was positively offset by a 17.6% decrease in operating expenses, mostly driven by lower Other operating expenses and Personnel benefits.
Net Income for the period was highly impacted by income from net monetary position, although with lower impact than the prior quarter. Inflation on 3Q24 was 12.1%^5^, lower than 2Q24’s 18.6%. Consequently, the income from net monetary position line recorded a 43.9% lower loss than the previous quarter, having a positive impact in the QoQ net income comparison.
^5^ Source: InstitutoNacional de Estadística y Censos (INDEC)
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| --- | | OTHER<br> COMPREHENSIVE INCOME | | | | | | --- | --- | --- | --- | --- | | In<br> millions of AR - Inflation adjusted | | | ∆<br> % | | | | 2Q24 | 3Q23 | QoQ | YoY | | Net<br> income for the period | 126,583 | 30,546 | (21.6%) | 224.8% | | Other<br> comprehensive income components to be reclassified to income/(loss) for the period | | | | | | Profit<br> or losses from financial isntruments at fair value through OCI | (117,236) | (30,050) | 37.4% | (144.3%) | | Profit or losses from<br> financial instruments at fair value through OCI | (173,380) | (35,836) | 55.6% | (114.8%) | | Reclassification adjustment<br> for the period | (14,131) | (14,724) | 57.5% | 59.2% | | Income tax | 70,275 | 20,510 | (86.4%) | (53.3%) | | Other<br> comprehensive income coponents not to be reclassified to income/(loss) for the period | | | | | | Income<br> or loss on equity instruments at fair value through OCI | (228) | (53) | 233.3% | n.m | | Resultado por instrumentos<br> de patrimonio a VR con cambios en ORI | (228) | (53) | 233.3% | n.m | | Total<br> Other Comprehensive Income/(loss) for the period | (117,464) | (30,103) | 37.8% | (142.8%) | | Total<br> Comprehensive Income | 9,119 | 443 | 186.3% | n.m | | Attributable<br> to owners of the Parent | 7,344 | (258) | 262.4% | n.m | | Attributable<br> to non-controlling interests | 1,775 | 701 | (128.4%) | (171.9%) |
All values are in US Dollars.
Lastly, Total OCI in 3Q24 reported a $73.104 billion loss, 37.8% lower than the loss recorded on 2Q24, explained by the results from financial instruments at FV through OCI, especially due to the maturity and sale of CPI linked bonds. Thus, total comprehensive income for the period in 3Q24 was $26.1 billion.
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Income Statement – 9 month accumulated
| INCOME<br> STATEMENT - 9 MONTH ACCUMULATED | ||
|---|---|---|
| In<br> millions of AR - Inflation adjusted | ||
| 2023 | ∆<br> % | |
| Interest income | 4,645,034 | (23.6%) |
| Interest expense | (2,360,697) | 45.8% |
| Net<br> interest income | 2,284,337 | (0.7%) |
| Fee income | 371,005 | 4.1% |
| Fee expenses | (162,656) | (12.0%) |
| Net<br> fee income | 208,349 | (2.0%) |
| Net income from financial<br> instruments at fair value through P&L | 92,120 | 9.8% |
| Net loss from write-down<br> of assets at amortized cost and fair value through OCI | 22,309 | n.m |
| Foreign exchange and<br> gold gains | 25,513 | 68.8% |
| Other operating income | 91,820 | 7.9% |
| Loan loss allowances | (112,250) | (10.1%) |
| Net<br> operating income | 2,612,198 | 5.1% |
| Personnel benefits | (365,633) | 6.2% |
| Administrative expenses | (399,747) | 1.9% |
| Depreciation and amortization | (42,599) | (18.1%) |
| Other operating expenses | (358,938) | 8.8% |
| Operating<br> expenses | (1,166,917) | 4.7% |
| Operating<br> income | 1,445,281 | 13.1% |
| Income from associates<br> and joint ventures | 2,216 | (131.6%) |
| Income from net monetary<br> position | (1,085,607) | (13.5%) |
| Income<br> before income tax | 361,890 | 10.8% |
| Income tax | (127,408) | (1.9%) |
| Income<br> for the period | 234,482 | 15.7% |
| Owners<br> of the parent | 232,478 | 16.3% |
| Non-controlling<br> interests | 2,004 | (59.3%) |
| Other<br> comprehensive Income (OCI) (1) | (11,653) | n.m |
| Total<br> comprehensive income | 222,829 | (104.8%) |
| (1) Net of Income<br> Tax. |
All values are in US Dollars.
In the first 9 months of 2024, BBVA Argentina net income was $271.2 billion, 15.7% higher than the $234.5 billion reported in the same period of 2023. This implied an accumulated annualized ROAE of 13.9% and a ROAA of 2.9% in 2024, compared to an accumulated annualized ROAE of 13.5% and a ROAA of 0.9% in nine months of 2023.
The 13.1% increment in real terms of the Bank’s operating income is mainly explained by (i) better net income from write-down of assets at FV through OCI, mainly due to the sale and maturity of CPI linked bonds, (ii) improvement in personnel benefits and (iii) improvement in other operating expenses. On the other hand, there is a decrease in net interest income due to lower yields on loans and securities, and a lower inflation accrued by CPI linked loans and securities.
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Additional to these factors, the net result is impacted by the income from net monetary position line, in a context of lower inflation (2024 9-month-accumulated inflation was 101.6% while 2023 9-month-accumulated inflation was 138.3%), as a consequence of a higher average net monetary position in the first nine months of 2024.
| OTHER<br> COMPREHENSIVE INCOME | ||
|---|---|---|
| In<br> millions of AR - Inflation adjusted | ||
| 2023 | ∆<br> % | |
| Net<br> income for the period | 234,482 | 15.7% |
| Other<br> comprehensive income components to be reclassified to income/(loss) for the period | ||
| Profit<br> or losses from financial isntruments at fair value through OCI | (14,482) | n.m |
| Profit or losses from<br> financial instruments at fair value through OCI | (9,584) | n.m |
| Reclassification adjustment<br> for the period | (8,875) | n.m |
| Income tax | 3,977 | n.m |
| Other<br> comprehensive income coponents not to be reclassified to income/(loss) for the period | ||
| Income<br> or loss on equity instruments at fair value through OCI | 2,829 | (95.2%) |
| Resultado por instrumentos<br> de patrimonio a VR con cambios en ORI | 2,829 | (95.2%) |
| Total<br> Other Comprehensive Income/(loss) for the period | (11,653) | n.m |
| Total<br> Comprehensive Income | 222,829 | (104.8%) |
| Attributable<br> to owners of the Parent | 220,911 | (104.9%) |
| Attributable<br> to non-controlling interests | 1,918 | (90.5%) |
All values are in US Dollars.
Total OCI in the first nine months of 2024 totaled a $281.8 billion loss, mainly impacted by the loss of financial instruments at FV through OCI, especially due to the position of CPI-linked bonds by December 2023 which either reach maturity or are sold. Thus, the total comprehensive income for the first nine months of 2024 totaled a $10.6 billion loss.
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| --- | | EARNINGS<br> PER SHARE | BBVA<br> ARGENTINA CONSOLIDATED | | | | | | --- | --- | --- | --- | --- | --- | | | | | | ∆<br> % | | | | 3Q24 | 2Q24 | 3Q23 | QoQ | YoY | | Financial<br> Statement information | | | | | | | Net income for the<br> period attributable to owners of the parent (in AR$ millions, inflation adjusted) | 99,673 | 111,009 | 9,631 | (10.2%) | n.m | | Total shares outstanding<br> ^(1)^ | 612,710 | 612,710 | 612,710 | - | - | | Market<br> information | | | | | | | Closing price of ordinary<br> share at BYMA (in AR$) | 4,270.0 | 4,188.8 | 1,024.4 | 1.9% | 316.8% | | Closing price of ADS<br> at NYSE (in USD) | 10.4 | 9.3 | 4.2 | 12.1% | 146.9% | | Book<br> value per share (in AR$) | 3,901.35 | 3,441.28 | 1,247.90 | 13.4% | 212.6% | | Price-to-book<br> ratio (BYMA price) (%) | 109.45 | 121.72 | 82.09 | (10.1%) | 33.3% | | Earnings<br> per share (in AR$) | 162.68 | 181.18 | 15.72 | (10.2%) | n.m | | Earnings<br> per ADS^(2)^ (in AR$) | 488.03 | 543.53 | 47.16 | (10.2%) | n.m | | Market<br> Cap (USD millions) | 6,354 | 5,668 | 2,573 | 12.1% | 146.9% | | (1) In thousands of shares. | | | | | | | (2) Each ADS accounts for 3 ordinary shares | | | | | | | Book value, Equity and Results not adjusted by inflation | | | | | |
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Net Interest Income
| NET<br> INTEREST INCOME | ||||
|---|---|---|---|---|
| In<br> millions of AR - Inflation adjusted | ∆<br> % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| Net<br> Interest Income | 760,881 | 835,026 | (39.5%) | (44.9%) |
| Interest<br> Income | 1,091,386 | 1,813,491 | (30.3%) | (58.1%) |
| From government securities | 156,315 | 710,488 | 22.6% | (73.0%) |
| From private securities | 1,022 | 2,112 | (50.9%) | (76.2%) |
| Interest from loans<br> and other financing | 419,127 | 622,160 | (7.2%) | (37.5%) |
| Financial<br> Sector | 3,062 | 2,205 | 17.6% | 63.3% |
| Overdrafts | 71,322 | 95,405 | (24.7%) | (43.7%) |
| Discounted<br> Instruments | 114,639 | 191,289 | (7.6%) | (44.6%) |
| Mortgage<br> loans | 5,420 | 2,696 | (34.7%) | 31.3% |
| Pledge<br> loans | 11,199 | 19,506 | 35.6% | (22.1%) |
| Consumer<br> Loans | 58,796 | 65,420 | 26.7% | 13.9% |
| Credit<br> Cards | 104,731 | 140,810 | (23.2%) | (42.9%) |
| Financial<br> leases | 2,987 | 5,130 | (14.4%) | (50.2%) |
| Loans<br> for the prefinancing and financing of exports | 2,762 | 1,062 | 50.8% | 292.3% |
| Other<br> loans | 44,209 | 98,637 | 2.4% | (54.1%) |
| Premiums on reverse<br> REPO transactions | 165,455 | 236,715 | (94.7%) | (96.3%) |
| CER/UVA clause adjustment | 347,822 | 240,913 | (51.6%) | (30.2%) |
| Other interest income | 1,645 | 1,103 | 31.9% | 96.7% |
| Interest<br> expenses | 330,505 | 978,465 | (9.3%) | (69.3%) |
| Deposits | 273,388 | 946,018 | (1.3%) | (71.5%) |
| Checking<br> accounts* | 54,524 | 252,724 | (0.5%) | (78.5%) |
| Savings<br> accounts | 5,353 | 3,265 | (53.0%) | (23.0%) |
| Time<br> deposits | 137,984 | 566,200 | 33.8% | (67.4%) |
| Investment<br> accounts | 75,527 | 123,829 | (62.3%) | (77.0%) |
| Other liabilities from<br> financial transactions | 12,469 | 579 | (82.0%) | 288.4% |
| Interfinancial loans<br> received | 2,781 | 14,606 | 248.6% | (33.6%) |
| Premiums on REPO<br> transactions | 33 | 46 | n.m | n.m |
| Guaranteed securities<br> loans | - | - | N/A | N/A |
| CER/UVA clause adjustment | 41,828 | 17,206 | (62.6%) | (9.1%) |
| Other interest expense | 6 | 10 | (83.3%) | (90.0%) |
All values are in US Dollars.
Net interest income in 3Q24 was $460.3 billion, falling 39.5% or $300.6 billion QoQ, and 44.9% or $374.8 billion YoY. In 3Q24, interest income decreased more than interest expenses both in monetary and percentage terms. The former fall was due to a lower income from REPOs, and CPI linked bonds due to lower inflation, additional to a fall in income from loans. Expenses are explained by lower expenses on CER/UVA clause adjustments and lower interest on investment accounts.
In 3Q24, interest income totaled $760.2 billion, falling 30.3% compared to 2Q24 and 58.1% compared to 3Q23. Quarterly decrease is mainly driven by (i) lower income from REPOs and (ii) lower income from loans, both explained by a decline in the quarterly average monetary policy rate (in 2Q24 it decreased from 80% to 40% and for the rest of the quarter, in 3Q24 it remained in 40%). Also, the decline in quarterly inflation caused the decrease in income from CPI linked bonds.
| 9 |
| --- |
Income from government securities increased 22.6% compared to 2Q24, and fell 73.0% compared to 3Q23. This is partially due to a greater position in LECAPs (Treasury bills capitalized in pesos). 90% of these results correspond to government securities at fair value through OCI and 10% correspond to securities at amortized cost (2027 National Treasury Bonds at fixed rate, National Treasury Bonds Private 0.70 Badlar Rate maturing on November 2027, and National Treasury Bonds CER 2025, used for reserve requirement integration).
Interest income from loans and other financing totaled $388.8 billion, decreasing 7.2% QoQ and 37.5% YoY. Quarterly decline is mainly due to a decrease in average rates, in spite of growth in real terms of the loan portfolio. Interest from loans with the sharpest decline were credit cards, overdrafts and discounted instruments, all of them affected by lower average rates and a greater assertiveness in loan commercialization.
Income from CER/UVA adjustments decreased 51.6% QoQ and 30.2% YoY. Quarterly decrease is explained by the delay with which the inflation adjustment effects are recorded, and impact on the subsequent financial statements, with a quarterly inflation below the previous quarter. 84% of income from interests from CER/UVA clause adjustments is explained by interests generated by CPI linked bonds.
Interest expenses totaled $299.9 billion, denoting a decrease of 9.3% QoQ and 69.3% YoY. Quarterly decline is described by lower investment account expenses and lower CER/UVA adjustment expenses, the latter due to a lower quarterly inflation.
Interests from time deposits (including investment accounts, excluding CER/UVA adjustments from time deposits) explain 71.0% of interest expenses, versus 64.6% the previous quarter. Time deposit expenses increased 33.8% QoQ and fall 67.4% YoY.
NIM
As of 3Q24, net interest margin (NIM) was 24.5%, below the 42.3% reported in 2Q24. In 3Q24, NIM in pesos was 26.5% and 3.3% in U.S. dollars.
| ASSETS &<br> LIABILITIES PERFORMANCE - TOTAL | ||||||||
|---|---|---|---|---|---|---|---|---|
| In millions of AR. Rates<br> and spreads in annualized % | ||||||||
| 2Q24 | 3Q23 | |||||||
| Interest<br> Earned/Paid | Average<br> Real Rate | Average<br> Balance | Interest<br> Earned/Paid | Average<br> Real Rate | Average<br> Balance | Interest<br> Earned/Paid | Average<br> Real Rate | |
| Total<br> interest-earning assets | 760,162 | 40.4% | 7,206,519 | 1,091,385 | 60.7% | 9,212,914 | 1,813,493 | 78.1% |
| Debt securities | 341,755 | 47.5% | 3,572,309 | 607,680 | 68.2% | 4,775,029 | 1,137,659 | 94.5% |
| Loans to customers/financial institutions | 418,400 | 36.2% | 3,620,645 | 483,682 | 53.6% | 4,246,095 | 675,819 | 63.1% |
| Loans to the BCRA | 7 | 9.7% | 229 | 3 | 5.3% | 327 | 9 | 10.9% |
| Other assets | - | 0.0% | 13,336 | 20 | 0.6% | 191,463 | 6 | 0.0% |
| Total non interest-earning assets | 10 | 0.0% | 2,927,906 | - | 0.0% | 2,762,931 | - | 0.0% |
| Total Assets | 760,172 | 28.0% | 10,134,425 | 1,091,385 | 43.2% | 11,975,845 | 1,813,493 | 60.1% |
| Total<br> interest-bearing liabilities | 299,913 | 21.7% | 4,553,427 | 330,505 | 29.1% | 6,258,191 | 978,466 | 62.0% |
| Savings accounts | 2,514 | 0.4% | 1,914,781 | 5,354 | 1.1% | 2,015,933 | 3,267 | 0.6% |
| Time deposits and investment accounts | 228,707 | 38.5% | 1,892,293 | 255,339 | 54.1% | 2,991,174 | 707,231 | 93.8% |
| Debt securities issued | 1,453 | 46.0% | 11,719 | 1,737 | 59.5% | - | 12 | - |
| Other liabilities | 67,239 | 32.2% | 734,634 | 68,075 | 37.2% | 1,251,084 | 267,956 | 85.0% |
| Total non-interest-bearing liabilities | - | 0.0% | 5,580,998 | - | 0.0% | 5,717,657 | - | 0.0% |
| Total liabilities and equity | 299,913 | 11.0% | 10,134,425 | 330,505 | 13.1% | 11,975,848 | 978,466 | 32.4% |
| NIM - Total | 24.5% | 42.3% | 36.0% | |||||
| Spread - Total | 18.7% | 31.6% | 16.1% | |||||
| Nominal rates are calculated over a 365-day year | ||||||||
| Does not include Net income from measurement of financial instruments at fair value through P&L nor Net income from write-down of assets at amortized cost and at fair value through OCI | ||||||||
| Interest-bearing checking accounts included in other interest-bearing liabilities. Non interest-bearing accounts are included in non-interest-bearing liabilities. |
All values are in US Dollars.
| 10 |
| --- | | ASSETS<br> & LIABILITIES PERFORMANCE - AR | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | In<br> millions of AR. Rates and spreads in annualized % | | | | | | | | | | | | | 2Q24 | | | 3Q23 | | | | | Interest<br> Earned/Paid | Average<br> Real Rate | Average<br> Balance | Interest<br> Earned/Paid | Average<br> Real Rate | Average<br> Balance | Interest<br> Earned/Paid | Average<br> Real Rate | | Total<br> interest-earning assets | 753,739 | 43.9% | 6,360,158 | 1,086,275 | 68.5% | 8,801,727 | 1,811,049 | 81.6% | | Debt securities | 341,433 | 48.7% | 3,213,087 | 607,404 | 75.8% | 4,649,803 | 1,137,285 | 97.0% | | Loans to customers/financial<br> institutions | 412,309 | 40.8% | 3,136,196 | 478,858 | 61.2% | 3,960,906 | 673,755 | 67.5% | | Loans to the BCRA | 7 | 9.8% | 225 | 3 | 5.3% | 324 | 9 | 11.0% | | Other assets | (10) | -0.2% | 10,650 | 10 | 0.4% | 190,694 | - | 0.0% | | Total<br> non interest-earning assets | 10 | 0.0% | 1,456,455 | - | 0.0% | 1,303,639 | - | 0.0% | | Total<br> Assets | 753,749 | 35.3% | 7,816,613 | 1,086,275 | 55.7% | 10,105,366 | 1,811,049 | 71.1% | | Total<br> interest-bearing liabilities | 299,001 | 30.4% | 3,226,417 | 330,251 | 41.1% | 5,070,668 | 978,024 | 76.5% | | Savings accounts | 2,486 | 1.1% | 752,188 | 5,330 | 2.8% | 1,009,893 | 3,248 | 1.3% | | Time deposits and Investment<br> accounts | 228,373 | 41.4% | 1,736,192 | 255,275 | 59.0% | 2,825,892 | 707,160 | 99.3% | | Debt securities issued | 1,453 | 46.0% | 11,719 | 1,737 | 59.5% | - | 12 | - | | Other liabilities | 66,689 | 32.9% | 726,318 | 67,909 | 37.5% | 1,234,883 | 267,604 | 86.0% | | Total<br> non-interest-bearing liabilities | - | 0.0% | 4,837,563 | - | 0.0% | 5,144,658 | - | 0.0% | | Total<br> liabilities and equity | 299,001 | 14.0% | 8,063,980 | 330,251 | 16.4% | 10,215,326 | 978,024 | 38.0% | | NIM<br> - AR | | 26.5% | | | 47.7% | | | 37.5% | | Spread<br> - AR | | 13.4% | | | 27.4% | | | 5.1% | | Nominal<br> rates are calculated over a 365-day year | | | | | | | | | | Does<br> not include Net income from measurement of financial instruments at fair value through P&L nor Net income from write-down of<br> assets at amortized cost and at fair value through OCI | | | | | | | | | | Interest-bearing<br> checking accounts included in other interest-bearing liabilities. Non interest-bearing accounts are included in non-interest-bearing<br> liabilities. | | | | | | | | |
All values are in US Dollars.
| ASSETS<br> & LIABILITIES PERFORMANCE - FOREIGN CURRENCY | BBVA<br> ARGENTINA CONSOLIDATED | |||||||
|---|---|---|---|---|---|---|---|---|
| In<br> millions of AR. Rates and spreads in annualized % | ||||||||
| 2Q24 | 3Q23 | |||||||
| Interest<br> Earned/Paid | Average<br> Real Rate | Average<br> Balance | Interest<br> Earned/Paid | Average<br> Real Rate | Average<br> Balance | Interest<br> Earned/Paid | Average<br> Real Rate | |
| Total<br> interest-earning assets | 6,423 | 3.9% | 846,361 | 5,110 | 2.4% | 411,187 | 2,444 | 2.4% |
| Debt securities | 322 | 1.7% | 359,222 | 276 | 0.3% | 125,226 | 374 | 1.2% |
| Loans to customers/financial<br> institutions | 6,091 | 4.2% | 484,449 | 4,824 | 4.0% | 285,189 | 2,064 | 2.9% |
| Loans to the BCRA | - | 0.0% | 4 | - | 0.0% | 3 | - | 0.0% |
| Other assets | 10 | 136.8% | 2,686 | 10 | 1.5% | 769 | 6 | 3.1% |
| Total<br> non interest-earning assets | - | 0.0% | 1,471,451 | - | 0.0% | 1,459,292 | - | 0.0% |
| Total<br> Assets | 6,423 | 1.1% | 2,317,812 | 5,110 | 0.9% | 1,870,479 | 2,444 | 0.5% |
| Total<br> interest-bearing liabilities | 912 | 0.2% | 1,327,010 | 254 | 0.1% | 1,187,523 | 442 | 0.1% |
| Savings accounts | 28 | 0.0% | 1,162,593 | 24 | 0.0% | 1,006,040 | 19 | 0.0% |
| Time deposits and Investment<br> accounts | 334 | 0.8% | 156,101 | 64 | 0.2% | 165,282 | 71 | 0.2% |
| Other liabilities | 550 | 9.2% | 8,316 | 166 | 8.0% | 16,201 | 352 | 8.6% |
| Total<br> non-interest-bearing liabilities | - | 0.0% | 743,435 | - | 0.0% | 572,999 | - | 0.0% |
| Total<br> liabilities and equity | 912 | 0.2% | 2,070,445 | 254 | 0.0% | 1,760,522 | 442 | 0.1% |
| NIM<br> - Foreign currency | 3.3% | 2.3% | 1.9% | |||||
| Spread<br> - Foreign currency | 3.7% | 2.3% | 2.2% | |||||
| Nominal<br> rates are calculated over a 365-day year | ||||||||
| Does<br> not include Net income from measurement of financial instruments at fair value through P&L nor Net income from write-down of<br> assets at amortized cost and at fair value through OCI | ||||||||
| Interest-bearing<br> checking accounts included in other interest-bearing liabilities. Non interest-bearing accounts are included in non-interest-bearing<br> liabilities. |
All values are in US Dollars.
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Net Fee Income
| NET<br> FEE INCOME | ||||
|---|---|---|---|---|
| In<br> millions of AR - Inflation adjusted | ∆<br> % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| Net<br> Fee Income | 65,933 | 52,407 | 7.9% | 35.7% |
| Fee<br> Income | 132,016 | 120,070 | 1.0% | 11.0% |
| Linked to liabilities | 34,313 | 42,663 | 5.8% | (14.9%) |
| From credit cards (1) | 69,076 | 52,565 | (1.9%) | 29.0% |
| Linked to loans | 14,279 | 11,093 | (6.1%) | 20.8% |
| From insurance | 4,545 | 4,971 | 5.3% | (3.7%) |
| From foreign trade<br> and foreign currency transactions | 5,834 | 5,157 | (2.7%) | 10.0% |
| Other fee income | 3,787 | 3,411 | 32.5% | 47.1% |
| Linked to loan commitments | 182 | 210 | 56.0% | 35.2% |
| From guarantees granted | 98 | 62 | 70.4% | 169.4% |
| Linked to securities | 3,689 | 3,349 | 31.5% | 44.9% |
| Fee<br> expenses | 66,083 | 67,663 | (6.0%) | (8.2%) |
| (1) Includes results from Puntos BBVA royalty program pursuant to IFRS 15 regulation. |
All values are in US Dollars.
Net fee income as of 3Q24 totaled $71.1 billion, increasing 7.9% or $5.2 billion QoQ and 35.7% or $18.7 billion YoY. The increase is explained by an increase in income and a greater fall in expenses in monetary terms.
In 3Q24, fee income totaled 133.2 billion pesos, increasing 1% QoQ, Improvement in fee income is mostly explained by (i) greater fee income linked to liabilities, (ii) higher other fee income, mainly account maintenance and bundles, and (ii) fees linked to securities. (i) and (ii) are mainly explained by price updates and more activity.
On the side of fee expenses, these totaled $62.1 billion, falling 6.0% QoQ and 8.2% YoY. This is explained by lower expenses due to processing fees and promotions on debit and credit cards, in addition to lower expenses from foreign trade transactions.
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Net Income from Measurement of Financial Instruments at Fair Value and Foreign Exchange and Gold Gains/Losses
| NET<br> INCOME FROM FINANCIAL INSTRUMENTS AT FAIR VALUE (FV) THROUGH P&L | ||||
|---|---|---|---|---|
| In<br> millions of AR - Inflation adjusted | ∆<br> % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| Net<br> Income from financial instruments at FV through P&L | 34,757 | 25,251 | (15.6%) | 16.2% |
| Income from government<br> securities | 35,714 | 16,294 | (16.6%) | 82.7% |
| Income from private<br> securities | 1,124 | 1,165 | (93.3%) | (93.6%) |
| Interest rate swaps | 433 | (219) | (62.8%) | 173.5% |
| Income from foreign<br> currency forward transactions | (2,838) | 5,980 | 39.4% | (128.8%) |
| Income from put option<br> long position | (495) | - | 235.8% | N/A |
| Income from corporate<br> bonds | 819 | 2,028 | (53.4%) | (81.2%) |
| Other | - | 3 | N/A | (100.0%) |
All values are in US Dollars.
In 3Q24, net income from financial instruments at fair value (FV) through P&L was $29.3 billion, decreasing 15.6% or $5.4 billion QoQ and increasing 16.2% or $4.1 billion YoY.
Quarterly results are mainly explained by a decrease in the income from government securities line item, followed by a decrease in income from private securities, due to the valuation of sovereign bonds at fair value through P&L, in particular the maturity of the Dual bond.
This was positively offset by a lower quarterly loss in income from foreign currency forward transactions QoQ, and due to put options long position, as a result of the exchange offered by the Government on puts issued by the BCRA. As of July 18, 2024, the tender offer process took place for put options issued by the BCRA, which were part of the Bank’s portoflio (Communication “B” 12847 and “A” 7546). As a result of such process, put options were handed over 546.974.473.392 at face value.
| DIFFERENCES<br> IN QUOTED PRICES OF GOLD AND FOREIGN FOREIGN CURRENCY | ||||
|---|---|---|---|---|
| In<br> millions of AR - Inflation adjusted | ∆<br> % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| Foreign<br> exchange and gold gains/(losses) (1) | 22,803 | 6,612 | (70.8%) | 0.8% |
| From<br> foreign exchange position | 9,785 | (13,682) | (198.0%) | 29.9% |
| Income<br> from purchase-sale of foreign currency | 13,018 | 20,294 | 24.8% | (19.9%) |
| Net<br> income from financial instruments at FV through P&L (2) | (2,838) | 5,980 | 39.4% | (128.8%) |
| Income<br> from foreign currency forward transactions | (2,838) | 5,980 | 39.4% | (128.8%) |
| Total<br> differences in quoted prices of gold & foreign currency (1) + (2) | 19,965 | 12,592 | (75.3%) | (60.8%) |
All values are in US Dollars.
In 3Q24, the total differences in quoted prices of gold and foreign currency showed profit for $4.9 billion, decreasing 75.3% or $15.0 billion compared to 2Q24.
The quarterly decrease in foreign exchange and gold gains is explained by a lower result in income from foreign exchange position mainly due to the effect of the Dual bonds maturity*.*
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Other Operating Income
| OTHER<br> OPERATING INCOME | ||||
|---|---|---|---|---|
| In<br> millions of AR - Inflation adjusted | ∆<br> % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| Operating<br> Income | 32,139 | 32,919 | (9.2%) | (11.4%) |
| Rental of safe deposit<br> boxes (1) | 5,043 | 4,272 | 19.4% | 40.9% |
| Adjustments and interest<br> on miscellaneous receivables (1) | 10,107 | 14,360 | (34.6%) | (54.0%) |
| Punitive interest (1) | 1,695 | 1,371 | 5.0% | 29.8% |
| Loans recovered | 3,450 | 3,537 | (15.4%) | (17.5%) |
| Results from the sale<br> of non-current assets held for sale | - | - | N/A | N/A |
| Fee income from credit<br> and debit cards (1) | 2,884 | 2,388 | (3.7%) | 16.2% |
| Fee expenses recovery | 923 | 1,208 | 12.9% | (13.7%) |
| Rents | 1,260 | 1,288 | (12.0%) | (13.9%) |
| Sindicated transaction<br> fees | 325 | 518 | 9.8% | (31.1%) |
| Disaffected provisions | 1,945 | 465 | (30.0%) | 192.9% |
| Other Operating Income(2) | 4,507 | 3,512 | 11.4% | 42.9% |
| (1)<br> Included in the efficiency ratio calculation | ||||
| (2)<br> Includes some of the concepts used in the efficiency ratio calculation |
All values are in US Dollars.
In 3Q24 other operating income totaled $29.2 billion, falling 9.2% or $3.0 billion QoQ, and 11.4% or $3.7 billion YoY. Quarterly decrease is mostly explained by a 34.6% fall in the Adjustments and interest on miscellaneous receivables line item, especially due to the credit card business guarantee fund, which is valuated in foreign currency, with a lower devaluation of the Argentine peso versus the U.S. dollar compared to the previous quarter. This was positively offset by greater income from rental of safe deposit boxes, together with other operating income.
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Operating Expenses
Personnel Benefits and Administrative Expenses
| PERSONNEL<br> BENEFITS & ADMINISTRATIVE EXPENSES | ||||
|---|---|---|---|---|
| In<br> millions of AR - Inflation adjusted | ∆<br> % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| Total<br> Personnel Benefits and Adminsitrative Expenses | 254,295 | 277,361 | (11.9%) | (19.2%) |
| Personnel<br> Benefits (1) | 122,958 | 131,066 | (18.1%) | (23.1%) |
| Administrative<br> expenses (1) | 131,337 | 146,295 | (6.1%) | (15.7%) |
| Travel expenses | 683 | 1,044 | 32.1% | (13.6%) |
| Outsourced administrative<br> expenses | 19,027 | 18,719 | 29.4% | 31.6% |
| Security services | 3,593 | 3,226 | (4.8%) | 6.0% |
| Fees to Bank Directors<br> and Supervisory Committee | 146 | 120 | (4.1%) | 16.7% |
| Other fees | 4,026 | 4,291 | (15.1%) | (20.3%) |
| Insurance | 796 | 1,008 | 64.1% | 29.6% |
| Rent | 16,904 | 20,766 | (37.6%) | (49.2%) |
| Stationery and supplies | 353 | 251 | (44.2%) | (21.5%) |
| Electricity and communications | 4,430 | 4,132 | 8.4% | 16.3% |
| Advertising | 8,413 | 6,601 | (12.6%) | 11.4% |
| Taxes | 31,536 | 27,317 | (18.6%) | (6.1%) |
| Maintenance costs | 10,419 | 10,907 | 3.2% | (1.4%) |
| Armored transportation<br> services | 11,041 | 10,371 | 4.3% | 11.0% |
| Software | 8,795 | 26,589 | (38.6%) | (79.7%) |
| Document distribution | 4,297 | 3,251 | 15.8% | 53.1% |
| Commercial reports | 2,276 | 2,064 | 22.3% | 34.8% |
| Other administrative<br> expenses | 4,602 | 5,638 | 20.4% | (1.7%) |
| Headcount* | ||||
| BBVA (Bank) | 6,009 | 5,919 | 179 | 269 |
| Subsidiaries (2) | 92 | 92 | (2) | (2) |
| Total<br> employees* | 6,101 | 6,011 | 177 | 267 |
| In<br> branches** | 2,210 | 2,193 | 55 | 72 |
| At<br> Main office | 3,891 | 3,818 | 122 | 195 |
| Total<br> branches*** | 242 | 243 | (3) | (4) |
| Own | 111 | 113 | - | (2) |
| Rented | 131 | 130 | (3) | (2) |
| - | ||||
| Efficiency<br> Ratio | ||||
| Efficiency ratio | 55.3% | 82.4% | 394<br> bps | (2,318)bps |
| Accumulated Efficiency<br> Ratio | 59.9% | 63.8% | (20)bps | (412)bps |
| (1)<br> Concept included in the efficiency ratio calculation | ||||
| (2)<br> Includes BBVA Asset Management, PSA & VWFS. Employees included in Main Office. | ||||
| *Total<br> effective employees, net of temporary contract employees. Expatriates excluded. | ||||
| **Branch<br> employees + Business Center managers | ||||
| ***Excludes<br> administrative branches |
All values are in US Dollars.
| 15 |
| --- |
During 3Q24, personnel benefits and administrative expenses totaled $224.1 billion, decreasing 11.9% or $30.2 billion compared to 2Q24, and 19.2% or $53.2 billion compared to 3Q23 in real terms.
Personnel benefits fell 18.1% QoQ, and 23.1% YoY. In spite of wages increasing in line with inflation, provisions recorded for the “Bankers’ day” benefit, stock of vacation days and variable remuneration, were adjusted by a lower projection of expected inflation.
As of 3Q24, administrative expenses fell 6.1% QoQ, and 15.7% YoY. This is mainly explained by (i) rent, (ii) taxes, and (iii) software. Rent and software are related to expenses of software licenses and services contracted with the Parent company. The tax line fell due to a contrast with 2Q24, in which income tax was paid in relation to the banking transaction tax, mainly as a result of dividend distribution).
The quarterly efficiency ratio as of 3Q24 was 59.2%, above the 55.3% reported in 2Q24, and improving versus the 82.4% reported in 3Q23. In spite of the numerator (expenses) decreasing, the denominator (income considering monetary position results) had a greater fall, especially due to a decrease in net interest income.
The accumulated efficiency ratio as of 3Q24 was 59.7%, below the 59.9% reported in 2Q24, and the 63.8% reported in 3Q23. The improvement in this ratio is due to a decrease in expenses, but especially due to an increase in net interest income.
Other Operating Expenses
| OTHER<br> OPERATING EXPENSES | ||||
|---|---|---|---|---|
| In<br> millions of AR - Inflation adjusted | ∆<br> % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| Other<br> Operating Expenses | 109,972 | 133,098 | (30.9%) | (42.9%) |
| Turnover tax (1) | 103,767 | 113,109 | (50.5%) | (54.6%) |
| Initial loss of loans<br> below market rate (1) | 3,092 | 3,613 | 84.6% | 58.0% |
| Contribution to the<br> Deposit Guarantee Fund (SEDESA) (1) | 2,309 | 2,953 | 8.7% | (15.0%) |
| Interest on liabilities<br> from financial lease | 921 | 842 | 8.3% | 18.4% |
| Other allowances | (19,612) | 1,195 | 128.3% | 365.3% |
| Dividend<br> currency adjutments | 11,528 | - | (100.0%) | N/A |
| Claims | 767 | 1,304 | 80.7% | 6.3% |
| Other operating expenses<br> (2) | 7,200 | 10,082 | 17.3% | (16.2%) |
| (1)<br> Concept included for the calculation of the efficiency ratio | ||||
| (2)<br> Considers some concepts included for the acalculation of the efficiency ratio |
All values are in US Dollars.
In 3Q24, other operating expenses totaled $76.0 billion, decreasing 30.9% or $34.0 billion QoQ, and 42.9% or $57.1 billion YoY.
Lower turnover tax was recorded, mainly due to financial income at lower average rates of assets (loans in particular), and the shift of BCRA debt onto Treasury debt, which is not subject to turnover tax.
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Income from Associates
This line reflects the results from non-consolidated associate companies. During 3Q24, a profit of $344 million has been reported, mainly due to the Bank’s participation in BBVA Seguros Argentina S.A., Rombo Compañía Financiera S.A., Interbanking S.A. and Play Digital S.A. and Openpay Argentina S.A.
Income Tax
Accumulated income tax during the first nine months of 2024 recorded a loss of $129.9 billion, while taxes for the quarter recorded a loss for $24.7 billion. The nine month accumulated effective tax rate in 2024 was 32%^6^^.^
Accumulated income tax during the first nine months of 2023 recorded a loss of $127.4 billion, implying an effective tax rate of 35%.
^6^ Income tax, according to IAS 34, is recorded on interimfinancial periods over the best estimate of the weighted average tax rate expected for the fiscal year.
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Balance sheet and activity
Loans and Other Financing
| LOANS<br> AND OTHER FINANCING | ||||
|---|---|---|---|---|
| In<br> millions of AR - Inflation adjusted | ∆<br> % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| To the public sector | 1,908 | 173 | 6.1% | n.m |
| To the financial sector | 25,178 | 16,787 | 72.0% | 157.9% |
| Non-financial<br> private sector and residents abroad | 4,339,924 | 4,282,849 | 26.5% | 28.2% |
| Non-financial<br> private sector and residents abroad - AR | 3,779,678 | 3,993,901 | 23.0% | 16.4% |
| Overdrafts | 590,533 | 350,300 | (18.5%) | 37.3% |
| Discounted instruments | 879,178 | 941,434 | 48.0% | 38.3% |
| Mortgage loans | 180,389 | 191,428 | (0.3%) | (6.0%) |
| Pledge loans | 58,884 | 118,798 | 112.8% | 5.5% |
| Consumer loans | 386,118 | 389,756 | 51.0% | 49.6% |
| Credit cards | 1,285,411 | 1,484,385 | 14.2% | (1.1%) |
| Receivables from financial<br> leases | 17,261 | 33,867 | 11.2% | (43.3%) |
| Loans to personnel | 23,091 | 24,498 | 25.4% | 18.2% |
| Other loans | 358,813 | 273,971 | 29.0% | 68.9% |
| Non-financial<br> private sector and residents abroad - Foreign Currency | 560,246 | 288,948 | 50.0% | 190.9% |
| Overdrafts | 13 | 29 | (15.4%) | (62.1%) |
| Discounted instruments | 11,488 | 6,138 | 270.3% | n.m |
| Credit cards | 56,653 | 49,129 | (16.5%) | (3.7%) |
| Receivables from financial<br> leases | 63 | 231 | n.m | 129.9% |
| Loans for the prefinancing<br> and financing of exports | 443,468 | 199,567 | 15.8% | 157.3% |
| Other loans | 48,561 | 33,854 | 387.3% | n.m |
| %<br> of total loans to Private sector in AR | 87.1% | 93.3% | (240)pbs | (856)pbs |
| %<br> of total loans to Private sector in Foreign Currency | 12.9% | 6.7% | 240<br> pbs | 856<br> pbs |
| % of mortgage loans<br> with UVA adjustments / Total mortgage loans (1) | 52.0% | 54.2% | 1.483<br> pbs | 1.269<br> pbs |
| % of pledge loans with<br> UVA adjustments / Total pledge loans (1) | 4.0% | 0.9% | 0<br> pbs | 310<br> pbs |
| % of consumer loans<br> with UVA adjustments / Total consumer loans (1) | 0.0% | 0.1% | (0)pbs | (12)pbs |
| % of loans with UVA<br> adjustments / Total loans and other financing(1) | 0.1% | 0.1% | 12<br> pbs | 15<br> pbs |
| Total<br> loans and other financing | 4,367,010 | 4,299,809 | 26.8% | 28.7% |
| Allowances | (89,328) | (120,154) | (15.8%) | 13.9% |
| Total<br> net loans and other financing | 4,277,682 | 4,179,655 | 27.0% | 30.0% |
| (1) Excludes effect of accrued interests adjustments. |
All values are in US Dollars.
| LOANS<br> AND OTHER FINANCING TO NON-FINANCIAL PRIVATE SECTOR AND RESIDENTS ABROAD IN FOREIGN CURRENCY | ||||
|---|---|---|---|---|
| In<br> millions of | ∆<br> % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| FX rate* | 911.75 | 350.01 | 6.5% | 177.4% |
| Non-financial private<br> sector and residents abroad - Foreign Currency () | 548 | 267 | 58.0% | 224.2% |
| *Wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500, as of the end of period. |
All values are in US Dollars.
| 18 |
| --- |
Private sector loans as of 3Q24 totaled $5.5 trillion, increasing 26.5% or $1.2 trillion QoQ, and 28.2% or $1.2 trillion YoY.
Loans to the private sector in pesos increased 23.0% in 3Q24, and 16.4% YoY. During the quarter, growth was especially driven by (i) a 48.0% increase in discounted instruments, followed by (ii) a 51.0% increase in consumer loans, (iii) a 14.2% increase in credit cards, and (iv) an increase in other loans, mainly commercial loans (PIV) and floorplan*^7^***. In all cases, the increment is boosted by genuine growth in real terms of the portfolio, levered on the lower market interest rates and a greater commercial efforts.
Loans to the private sector denominated in foreign currency increased 50.0% QoQ and 190.0% YoY. Quarterly increase is mainly explained by a 15.8% growth in financing and prefinancing of exports, and a 270.3% growth in discounted instruments. Loans to the private sector in foreign currency measured in U.S. dollars increased 58.0% QoQ and 224.2% YoY. The depreciation of the argentine peso versus the U.S. dollar was 6.1% QoQ and 64.0% YoY^8^.
In 3Q24, total loans and other financing totaled $5.5 trillion, increasing 26.8% QoQ and 28.7% compared to 3Q23.
| LOANS<br> AND OTHER FINANCING | ||||
|---|---|---|---|---|
| In<br> millions of AR - Inflation adjusted | ∆<br> % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| Non-financial<br> private sector and residents abroad - Retail | 1,990,546 | 2,257,994 | 22.2% | 7.7% |
| Mortgage loans | 180,389 | 191,428 | (0.3%) | (6.0%) |
| Pledge loans | 58,884 | 118,798 | 112.8% | 5.5% |
| Consumer loans | 386,118 | 389,756 | 51.0% | 49.6% |
| Credit cards | 1,342,064 | 1,533,514 | 12.9% | (1.2%) |
| Loans to personnel | 23,091 | 24,498 | 25.4% | 18.2% |
| Non-financial<br> private sector and residents abroad - Commercial | 2,349,378 | 2,024,855 | 30.2% | 51.0% |
| Overdrafts | 590,546 | 350,329 | (18.5%) | 37.3% |
| Discounted instruments | 890,666 | 947,572 | 50.9% | 41.9% |
| Receivables from financial<br> leases | 17,324 | 34,098 | 13.8% | (42.2%) |
| Loans for the prefinancing<br> and financing of exports | 443,468 | 199,567 | 15.8% | 157.3% |
| Other loans | 430,465 | 517,787 | 69.2% | 40.7% |
| %<br> of total loans to Retail sector | 45.9% | 52.7% | (156)pbs | (841)pbs |
| %<br> of total loans to Commercial sector | 54.1% | 47.3% | 156<br> pbs | 841<br> pbs |
All values are in US Dollars.
In real terms, retail loans (mortgage, pledge, consumer and credit cards, including loans to personnel) increased 22.2% QoQ and 45.0% YoY in real terms. During the quarter, growth is most evident in consumer loans increasing 51.0% and credit cards 12.9%.
Commercial loans (overdrafts, discounted instruments, receivables from financial leases, loans for the prefinancing and financing of exports, and otherloans) increased 30.2% QoQ and 51.0% YoY, both in real terms. In the quarter, it is noted that discounted instruments increased 50.9%, and overdrafts decreased 18.5%.
As observed in previous quarters, loan portfolios were impacted by the effect of inflation during the third quarter of 2024, which reached 12.1%. In nominal terms, BBVA Argentina managed to increase the retail, commercial and total loan portfolio by 38.6%, 44.5% and 42.1% respectively during the quarter, surpassing quarterly inflation levels in all cases.
^7^ Floorplan: loans through which the official dealershipnetwork finances vehicle stock, spare parts and other equipment goods.
^8^ Taking into consideration wholesale U.S. dollar foreignexchange rates on BCRA’s Communication “A” 3500.
| 19 |
| --- | | LOANS<br> AND OTHER FINANCING - NON RESTATED FIGURES | | | | | | --- | --- | --- | --- | --- | | In<br> millions of AR | | | ∆<br> % | | | | 2Q24 | 3Q23 | QoQ | YoY | | Non-financial private<br> sector and residents abroad - Retail | 1,754,608 | 722,816 | 38.6% | 236.6% | | Non-financial private<br> sector and residents abroad - Commercial | 2,115,801 | 663,221 | 44.5% | 361.0% | | Total loans and other<br> financing (1) | 3,894,564 | 1,391,526 | 42.1% | 297.8% | | (1) Does not include allowances | | | | |
All values are in US Dollars.
As of 3Q24, the total gross loans and other financing over deposits ratio was 64.9%, below the 67.0% recorded in 2Q24 and above the 53.6% in 3Q23.
Total loan participation over total assets is 43%, versus 40% in 2Q24 and 35% in 3Q23, evidencing lower exposure to the public sector, in line with real loan growth demand.
| MARKET<br> SHARE - PRIVATE SECTOR LOANS | BBVA<br> ARGENTINA CONSOLIDATED | ||||
|---|---|---|---|---|---|
| In<br> % | ∆<br> bps | ||||
| 3Q24 | 2Q24 | 3Q23 | QoQ | YoY | |
| Private sector loans<br> - Bank | 9.53% | 9.78% | 8.55% | (25)pbs | 97<br> pbs |
| Private sector loans<br> - Consolidated* | 10.35% | 10.54% | 9.35% | (19)pbs | 100<br> pbs |
| Based on daily BCRA information. Capital balance as of the last day of each quarter. | |||||
| * Consolidates PSA, VWFS & Rombo | |||||
| LOANS<br> BY ECONOMIC ACTIVITY | BBVA<br> ARGENTINA CONSOLIDATED | ||||
| --- | --- | --- | --- | --- | --- |
| %<br> over total gross loans and other financing | ∆<br> bps | ||||
| 3Q24 | 2Q24 | 3Q23 | QoQ | YoY | |
| Government services | 0.00% | 0.00% | 0.00% | n.m. | n.m. |
| Non-financial public<br> sector | 0.04% | 0.00% | 0.04% | n.m. | n.m. |
| Financial Sector | 0.78% | 10.48% | 0.60% | (969)pbs | 18<br> pbs |
| Agricultural and Livestock | 4.77% | 2.81% | 4.80% | 196<br> pbs | (4)pbs |
| Mining products | 4.23% | 0.76% | 4.30% | 347<br> pbs | (7)pbs |
| Other manufacturing | 11.55% | 6.02% | 11.65% | 553<br> pbs | (11)pbs |
| Electricity, oil,water<br> and sanitary services | 1.16% | 0.38% | 1.18% | 78<br> pbs | (1)pbs |
| Wholesale and retail<br> trade | 7.97% | 3.85% | 8.05% | 412<br> pbs | (8)pbs |
| Transport | 1.39% | 1.07% | 1.40% | 32<br> pbs | (1)pbs |
| Services | 1.17% | 0.80% | 1.18% | 37<br> pbs | (1)pbs |
| Others | 17.22% | 7.05% | 17.42% | 1.017<br> pbs | (19)pbs |
| Construction | 0.64% | 0.61% | 0.64% | 4<br> pbs | (0)pbs |
| Consumer | 49.07% | 66.17% | 48.74% | (1.710)pbs | 33<br> pbs |
| Total<br> gross loans and other financing | 100% | 100% | 100% |
| 20 |
| --- |
Asset Quality
| ASSET QUALITY | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ∆ % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| Commercial non-performing portfolio (1) | 3,546 | 5,868 | 2.3% | (38.2%) |
| Total commercial portfolio | 2,015,306 | 1,719,855 | 19.6% | 40.1% |
| Commercial non-performing portfolio / Total commercial portfolio | 0.18% | 0.34% | (3)pbs | (19)pbs |
| Retail non-performing portfolio (1) | 50,429 | 58,636 | 26.8% | 9.1% |
| Total retail portfolio | 2,575,955 | 2,824,523 | 28.9% | 17.5% |
| Retail non-performing portfolio / Total retail portfolio | 1.96% | 2.08% | (3)pbs | (15)pbs |
| Total non-performing portfolio (1) | 53,975 | 64,504 | 25.2% | 4.8% |
| Total portfolio | 4,591,261 | 4,544,378 | 24.8% | 26.1% |
| Total non-performing portfolio / Total portfolio | 1.18% | 1.42% | 0 pbs | (24)pbs |
| Allowances | 89,328 | 120,154 | 15.8% | (13.9%) |
| Allowances /Total non-performing portfolio | 165.50% | 186.27% | (1.251)pbs | (3.329)pbs |
| Quarterly change in Write-offs | 12,598 | 15,961 | 7.6% | (15.0%) |
| Write offs / Total portfolio | 0.27% | 0.35% | (4)pbs | (11)pbs |
| Cost of Risk (CoR) | 4.72% | 2.14% | (141)pbs | 116 pbs |
| (1)<br> Non-performing loans include: all loans to borrowers classified as "Deficient Servicing (Stage 3)", "High Insolvency<br> Risk (Stage 4)", "Irrecoverable" and/or "Irrecoverable for Technical Decision" (Stage 5) according to BCRA<br> debtor classification system |
All values are in US Dollars.
As of 3Q24, asset quality ratio or NPL (total non-performing portfolio / total portfolio) keeps a very good performance at 1.18%, with non-performing loans growing in line with the total portfolio.
Coverage ratio (allowances / total non-performing portfolio) reached 152.98% in 3Q24, from 165.5% in 2Q24. The decline is due to an improvement in the credit quality of the regular commercial portfolio.
Cost of risk (loan loss allowances / average total loans) reached 3.31% in 3Q24 compared to 4.72% in 2Q24. This is explained by an improvement in credit profiles of the commercial portfolio.
| ANALYSIS<br> FOR THE ALLOWANCE OF LOAN LOSSES | BBVA<br> ARGENTINA CONSOLIDATED | ||||
|---|---|---|---|---|---|
| In<br> millions of AR | |||||
| Stage<br> 1 | Stage<br> 2 | Stage<br> 3 | Monetary<br> result generated by allowances | Balance<br> at 09/30/2024 | |
| Other financial assets | 18 | - | 392 | (1,496) | 1,774 |
| Loans and other financing | 18,205 | 6,264 | 42,375 | (54,998) | 103,405 |
| Other debt securities | 58 | - | - | (128) | 128 |
| Eventual commitments | 8,274 | 2,268 | 158 | (7,751) | 14,988 |
| Total<br> allowances | 26,555 | 8,532 | 42,925 | (64,373) | 120,295 |
| Note:<br> to be consistent with Financial Statements, it must be recorded from the beginning of the year instead of the quarter |
All values are in US Dollars.
Allowances for the Bank in 3Q24 reflect expected losses driven by the adoption of the IFRS 9 standards as of January 1, 2020, except for debt instruments issued by the nonfinancial government sector which were excluded from the scope of such standard.
| 21 |
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Public Sector Exposure
| NET<br> PUBLIC DEBT EXPOSURE* | ||||
|---|---|---|---|---|
| In<br> millions of AR - Inflation adjusted | ∆<br> % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| Treasury<br> and Government securities | 2,814,485 | 1,527,555 | (6.4%) | 72.4% |
| Treasury<br> and National Government | 2,814,485 | 1,527,555 | (6.4%) | 72.4% |
| National<br> Treasury Public Debt in AR | 2,532,415 | 1,279,897 | 4.0% | 105.7% |
| LeFi | - | - | ||
| National<br> Treasury Public Debt in | 63 | 74 | 138.5% | 102.6% |
| National<br> Treasury Public Debt in AR linked to US dollars | 282,007 | 247,584 | (100.0%) | (100.0%) |
| Loans<br> to theNon-financial Public Sector | 1,908 | 173 | 6.1% | n.m |
| AR<br> Subtotal | 2,532,415 | 1,279,897 | 4.0% | 105.7% |
| Subtotal** | 282,070 | 247,657 | (99.9%) | (99.9%) |
| Total<br> Public Debt Exposure | 2,814,485 | 1,527,555 | (6.4%) | 72.4% |
| B.C.R.A.<br> Exposure | 369,885 | 3,375,863 | (87.3%) | (98.6%) |
| Instruments | 57,181 | 2,434,136 | (17.5%) | (98.1%) |
| Leliqs | - | 2,396,283 | N/A | (100.0%) |
| Notaliqs | 16,102 | 37,854 | (27.9%) | (69.3%) |
| Lediv*** | 41,079 | - | (13.5%) | N/A |
| Repo<br> / Pases | 312,704 | 941,726 | (100.0%) | (100.0%) |
| %<br> Public sector exposure (Excl. B.C.R.A.) / Total assets | 26.3% | 12.7% | (533)pbs | 824<br> pbs |
| *Deposits<br> at the Central Bank used to comply with reserve requirements not included. Includes assets used as collateral. | ||||
| **Includes<br> -linked Treasury public debt in AR | ||||
| ***Securities<br> denominated in foreign currency |
All values are in US Dollars.
3Q24 total public sector exposure (excluding BCRA) totaled $2.6 trillion, decreasing 6.4% or $181.4 trillion QoQ, and 72.4% or $1.1 trillion YoY.
The quarterly decrease is explained by the maturity of securities in ARS adjusted by USD, in particular the Dual bonds TDJ24, matured on June 30, 2024. As of July 2024, the market reference rate will be that of the new instrument created by the Treasury, the LeFis (Letra Fiscal de Liquidez), which ended the quarter with no position.
As a result of the monetary policy adopted by the Treasury and the BCRA, BCRA exposure fell 87.3%, mainly due to the removal of REPOs with the BCRA from the market.
Exposure to the public sector, excluding BCRA exposure, represent 21.0% of total assets, below the 26.3% of 2Q24 and 12.7% in 3Q23, and as mentioned before, in line with real loan growth demand.
| 22 |
| --- |
Deposits
| TOTAL<br> DEPOSITS | ||||
|---|---|---|---|---|
| In<br> millions of AR - Inflation adjusted | ∆<br> % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| Total<br> deposits | 6,515,416 | 8,015,039 | 30.9% | 6.4% |
| Non-financial Public<br> Sector | 202,230 | 64,454 | (16.0%) | 163.6% |
| Financial Sector | 2,159 | 3,975 | 21.7% | (33.9%) |
| Non-financial<br> private sector and residents abroad | 6,311,027 | 7,946,610 | 32.4% | 5.2% |
| Non-financial<br> private sector and residents abroad - AR | 4,570,304 | 6,393,360 | 12.4% | (19.6%) |
| Checking accounts* | 1,371,522 | 2,359,594 | 13.9% | (33.8%) |
| Savings accounts** | 1,139,078 | 1,227,609 | (7.3%) | (14.0%) |
| Time deposits | 1,720,488 | 2,182,311 | 34.8% | 6.3% |
| Investment accounts | 307,296 | 583,777 | (45.2%) | (71.2%) |
| Other | 31,920 | 40,069 | 3.1% | (17.9%) |
| Non-financial<br> private sector and res. abroad - Foreign Currency | 1,740,723 | 1,553,250 | 84.9% | 107.2% |
| Checking accounts* | 567 | 544 | 19.9% | 25.0% |
| Savings accounts** | 1,604,965 | 1,371,078 | 88.6% | 120.8% |
| Time deposits | 124,355 | 166,218 | 45.1% | 8.5% |
| Other | 10,836 | 15,410 | (9.5%) | (36.3%) |
| %<br> of total portfolio in the private sector in AR | 72.4% | 80.5% | (1.093)pbs | (1.896)pbs |
| %<br> of total portfolio in the private sector in Foregin Currency | 27.6% | 19.5% | 1.093<br> pbs | 1.896<br> pbs |
| %<br> of UVA Time deposits & Investment accounts / Total AR Time deposits & Investment accounts | 0.0% | 1.4% | 227<br> pbs | 88<br> pbs |
| *Includes<br> interest-bearing checking accounts | ||||
| **Includes<br> special checking accounts |
All values are in US Dollars.
| DEPOSITS<br> TO THE NON-FINANCIAL PRIVATE SECTOR AND RES. ABROAD IN FOREIGN CURRENCY | ||||
|---|---|---|---|---|
| In<br> millions of | ∆<br> % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| FX rate* | 911.8 | 350.0 | 6.5% | 177.4% |
| Non-financial private<br> sector and residents abroad - Foreign Currency () | 1,703 | 1,436 | 94.6% | 130.8% |
| *Wholesale<br> U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500, as of the end of period. |
All values are in US Dollars.
As of 3Q24, total deposits reached $8.5 trillion, increasing 30.9% or $2.0 trillion QoQ, and 6.4% or $514.7 billion YoY.
Private non-financial sector deposits in 3Q24 totaled $8.4 trillion, increasing 32.4% QoQ, and 5.2% YoY.
Private non-financial sector deposits in pesos totaled $5.1 trillion, increasing 12.4% compared to 2Q24, and falling 19.6% compared to 3Q23. The quarterly change is mainly affected by a 34.8% increase in time deposits, and 13.9% increase in checking accounts (especially interest bearing checking accounts), offset by a 45.2% fall in investment accounts and a 7.3% fall in savings accounts.
Private non-financial sector deposits in foreign currency expressed in pesos increased 84.9% QoQ and 107.2% YoY. This is mainly explained by an 88.6% increase in savings accounts, directly affected by the fiscal amnesty promoted by the Government.
| 23 |
| --- | | PRIVATE<br> DEPOSITS | | | | | | --- | --- | --- | --- | --- | | In<br> millions of AR - Inflation adjusted | | | ∆<br> % | | | | 2Q24 | 3Q23 | QoQ | YoY | | Non-financial<br> private sector and residents abroad | 6,311,027 | 7,946,610 | 32.4% | 5.2% | | Sight<br> deposits | 4,158,888 | 5,014,304 | 36.8% | 13.4% | | Checking accounts* | 1,372,089 | 2,360,138 | 13.9% | (33.8%) | | Savings accounts** | 2,744,043 | 2,598,687 | 48.8% | 57.1% | | Other | 42,756 | 55,479 | (0.1%) | (23.0%) | | Time<br> deposits | 2,152,139 | 2,932,306 | 24.0% | (9.0%) | | Time deposits | 1,844,843 | 2,348,529 | 35.5% | 6.5% | | Investment accounts | 307,296 | 583,777 | (45.2%) | (71.2%) | | %<br> of sight deposits over total private deposits | 67.0% | 63.4% | 174<br> pbs | 530<br> pbs | | %<br> of time deposits over total private deposits | 33.0% | 36.6% | (174)pbs | (530)pbs | | *Includes<br> interest-bearing checking accounts | | | | | | **Includes<br> special checking accounts | | | | |
All values are in US Dollars.
As observed in previous quarters, deposits were impacted by the effect of inflation. This being said, in nominal terms, BBVA Argentina managed to increase the sight deposits, time deposits and total deposits by 53.4%, 39.0% and 48.5% respectively, surpassing the quarterly level of inflation in all cases.
| PRIVATE<br> DEPOSITS - NON RESTATED FIGURES | ||||
|---|---|---|---|---|
| In<br> millions of AR | ∆<br> % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| Sight deposits | 3,708,958 | 1,622,755 | 53.4% | 250.5% |
| Time deposits | 1,919,310 | 948,966 | 39.0% | 181.2% |
| Total deposits | 5,628,268 | 2,593,867 | 48.5% | 222.2% |
All values are in US Dollars.
As of 3Q24, the Bank’s transactional deposits (checking accounts and savings accounts) represented 68.1% of total non-financial private deposits, totaling $5.7 trillion, versus 65.9% in 2Q24.
| MARKET<br> SHARE - PRIVATE SECTOR DEPOSITS | BBVA<br> ARGENTINA CONSOLIDATED | ||||
|---|---|---|---|---|---|
| In<br> % | ∆<br> bps | ||||
| 3Q24 | 2Q24 | 3Q23 | QoQ | YoY | |
| Private sector Deposits<br> - Consolidated* | 8.67% | 7.50% | 7.13% | 117<br> pbs | 154<br> pbs |
| Based<br> on daily BCRA information. Capital balance as of the last day of each quarter. |
| 24 |
| --- |
Other Sources of Funds
| OTHER<br> SOURCES OF FUNDS | ||||
|---|---|---|---|---|
| In<br> millions of AR - Inflation adjusted | ∆<br> % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| Other<br> sources of funds | 2,628,594 | 2,435,179 | (0.7%) | 7.2% |
| Central Bank | 158 | 264 | (13.9%) | (48.5%) |
| Banks and international<br> organizations | 12,481 | 6,009 | 239.8% | n.m |
| Financing received<br> from local financial institutions | 40,239 | 66,288 | 254.0% | 114.9% |
| Reverse REPOs and Guaranteed<br> securities | 199,038 | - | (100.0%) | N/A |
| Corporate bonds | 12,392 | - | 188.0% | N/A |
| Equity | 2,364,286 | 2,362,618 | 1.1% | 1.2% |
All values are in US Dollars.
In 3Q24, other sources of funds totaled $2.6 trillion, decreasing 0.7% or $17.5 billion QoQ, and increasing 7.2% or $175.9 billion YoY.
The variation in the quarter is mostly explained by a 100.0% decrease in REPOs and guaranteed securities, offset by an increase of 254.0% in financing received from local financial institutions, mainly by the subsidiaries.
As of September 23, 2024, the Bank issued corporate bonds for $24.5 billion at face value, at BADLAR+5% rate and maturity on June 23, 2025, with quarterly interest payments. BBVA Argentina last corporate bond issuance was in 2019.
Liquid Assets
| TOTAL<br> LIQUID ASSETS | ||||
|---|---|---|---|---|
| In<br> millions of AR - Inflation adjusted | ∆<br> % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| Total<br> liquid assets | 4,534,763 | 6,142,128 | 26.6% | (6.5%) |
| Cash and deposits in<br> banks | 1,626,639 | 1,478,068 | 85.9% | 104.6% |
| Debt securities at<br> fair value through P&L | 282,438 | 329,922 | (70.6%) | (74.9%) |
| Government<br> securities | 282,438 | 329,494 | (70.6%) | (74.8%) |
| Liquidity<br> bills of B. C. R. A. | - | 428 | N/A | (100.0%) |
| Net REPO transactions | 113,666 | 941,722 | (100.0%) | (100.0%) |
| Other debt securities | 2,503,654 | 3,392,069 | 1.2% | (25.3%) |
| Government<br> securities | 2,487,552 | 958,373 | - | 159.5% |
| Liquidity<br> bills of B. C. R. A. | - | 2,395,843 | N/A | (98.5%) |
| Internal<br> bills of B.C.R.A. | 16,102 | 37,853 | (27.9%) | (69.3%) |
| Overnight transactios<br> in foreign banks | 8,366 | 347 | n.m | n.m |
| Liquid<br> assets / Total Deposits | 69.6% | 76.6% | (230)pbs | (933)pbs |
| Liquid<br> assets / Total Deposits | 61.4% | 70.1% | (278)pbs | (1.150)pbs |
| Liquid<br> assets / Total Deposits | 89.0% | 102.6% | (804)pbs | (2.157)pbs |
All values are in US Dollars.
In 3Q24, liquid assets were $5.7 trillion, increasing 26.6% or $1.2 trillion versus 2Q24, and falling 6.5% or $401.2 billion compared to 3Q23. This was mainly driven by an increase in cash and deposits in banks, especially due to the fiscal amnesty.
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In the quarter, the liquidity ratio (liquid assets / total deposits) reached 67.3%. Liquidity ratio in local and foreign currency reached 58.6% and 89.0% respectively. The decline is explained by the greater growth in total deposits than that of liquid assets.
Solvency
| MINIMUM<br> CAPITAL REQUIREMENT | ||||
|---|---|---|---|---|
| In<br> millions of AR - Inflation adjusted | ∆<br> % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| Minimum<br> capital requirement | 665,584 | 634,546 | 14.9% | 20.6% |
| Credit risk | 453,588 | 453,611 | 19.4% | 19.4% |
| Market risk | 2,407 | 1,792 | (3.5%) | 29.6% |
| Operational risk | 209,589 | 179,143 | 5.5% | 23.4% |
| Integrated<br> Capital - RPC (1)* | 2,065,154 | 2,106,825 | 0.9% | (1.1%) |
| Ordinary Capital Level<br> 1 ( COn1) | 2,305,049 | 2,296,323 | 1.1% | 1.5% |
| Deductible items COn1 | (239,895) | (189,498) | (3.2%) | (30.6%) |
| Excess<br> Capital | ||||
| Integration excess | 1,399,570 | 1,472,279 | (5.8%) | (10.4%) |
| Excess as %<br> of minimum capital requirement | 210.3% | 232.0% | (3.790)pbs | (5.964)pbs |
| Risk-weighted assets<br> (RWA, according to B.C.R.A. regulation) (2) | 8,154,656 | 7,766,673 | 14.9% | 20.6% |
| Regulatory<br> Capital Ratio (1)/(2) | 25.3% | 27.1% | (308)pbs | (488)pbs |
| TIER<br> I Capital Ratio (Ordinary Capital Level 1/ RWA) | 25.3% | 27.1% | (308)pbs | (488)pbs |
| *<br> RPC includes 100% of quarterly results |
All values are in US Dollars.
BBVA Argentina continues to show strong solvency indicators on 3Q24. Capital ratio reached 22.2%, below 2Q24’s 25.3%. Capital excess over regulatory requirement was $1.3 trillion or 172.4%. It is important to mention that capital ratio was highly impacted in 2Q24 by dividend distribution, which was paid in three consecutive installments, in cash or in kind, for 264.2 billion pesos, expressed in December 31, 2023 currency, and that pursuant to BCRA regulation it has been adjusted by inflation as of the day of each payment.
The fall in the capital ratio in this quarter is partially explained by the 14.9% increase in Risk Weighted Assets (RWA), above the increase of Ordinary Capital Level 1 (Con1) of 1.1%. The increase in RWA is linked to the real growth in the loan portfolio, in line with the increase in market risk requirements.
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BBVA Argentina Asset Management S.A.
| MUTUAL<br> FUNDS ASSETS | ||||
|---|---|---|---|---|
| In<br> millions of AR - Inflation adjusted | ∆<br> % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| FBA Renta Pesos | 1,941,071 | 2,644,663 | 12.8% | (17.2%) |
| FBA Acciones Argentinas | 86,261 | 28,301 | (7.0%) | 183.5% |
| FBA Ahorro Pesos | 45,941 | 11,340 | 73.4% | n.m |
| FBA Renta Fija Dólar<br> I | - | - | N/A | N/A |
| FBA Renta Fija Plus | 14,713 | 13,275 | 81.0% | 100.6% |
| FBA Bonos Argentina | 15,901 | 3,309 | 29.7% | n.m |
| FBA Horizonte | 6,030 | 1,375 | 76.7% | n.m |
| FBA Renta Mixta | 7,985 | 5,967 | 15.4% | 54.4% |
| FBA Acciones Latinoamericanas | 7,400 | 8,389 | (8.2%) | (19.0%) |
| FBA Renta Publica I | 5,378 | 1,576 | (7.1%) | 217.1% |
| FBA Gestión<br> I | 83 | 176 | (8.4%) | (56.8%) |
| FBA Bonos Globales | 17 | 80 | (29.4%) | (85.0%) |
| FBA Horizonte Plus | 12 | 31 | (8.3%) | (64.5%) |
| FBA Retorno Total I | 11 | 43 | (9.1%) | (76.7%) |
| FBA Calificado | - | 27,693 | N/A | (100.0%) |
| FBA Renta Fija Local | 4 | 9 | (100.0%) | (100.0%) |
| Total<br> Equity | 2,130,807 | 2,746,227 | 15.7% | (10.2%) |
| AMASAU<br> net income | 4,054 | 3,572 | 36.9% | 55.3% |
All values are in US Dollars.
| MARKET<br> SHARE - MUTUAL FUNDS | BBVA<br> ASSET MANAGEMENT | ||||
|---|---|---|---|---|---|
| In<br> % | ∆<br> bps | ||||
| 3Q24 | 2Q24 | 3Q23 | QoQ | YoY | |
| Mutual<br> funds | 5.12% | 4.60% | 5.58% | 52<br> pbs | (98)pbs |
| Source:<br> Cámara Argentina de Fondos Comunes de Inversión |
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Other Events
Main Relevant Events
| · | Issuance of Corporate bonds. As of August 21, the Board approved within the framework of the Global<br> Negotiable Obligations Program for up to a total amount of US$ 500 million in circulation,<br> the issuance and placement by public offering of a new class of Negotiable Obligations, at<br> a nominal value not exceeding AR$ 50 billion or its equivalent in the denomination to be<br> determined, to be determined in due course by the sub-delegates, together with the other<br> issuance terms and conditions. For more information click<br> here. |
|---|---|
| · | Changes in management committee. As of august 21, 2024, the Board Board of Directors, has resolved<br> to reorganize the current Business Development and Commercial Banking Divisions, redistributing<br> their functions between two new Divisions: Retail Business and Corporate Business. These<br> Divisions will now be responsible for the development of solutions, networks, and distribution<br> channels for individuals and companies, respectively, which were previously under the responsibility<br> of the Commercial Banking and Business Development Divisions. The Retail Business Division<br> will be led by Adrián Alabaster, and the Corporate Business Division will be led by<br> Hernán Jordan, who until now served as Director of Commercial Banking. The Board of<br> Directors would like to extend its gratitude to Juan Kindt for his outstanding contribution<br> and dedication throughout his successful career at the Bank and in leading Business Development.<br> For more information click here. |
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| · | Authorizationof Chief Executive Officer (CEO). As of August 29, 2024, the BCRA, through Resolution No. 291 dated 29 August 2024, resolved not to<br>raise any objections to Mr.Jorge Alberto Bledel serving as Chief Executive Officer (CEO) of Banco BBVA Argentina S.A. For more information<br>click here. |
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| · | Authorizationof Board Director. As of September 20, 2024, the BCRA, through Resolution No. 313 dated 19 September 2024, resolved not to raise any<br>objections to Mr. Ignacio Javier Lacasta Casado serving as Board Director of Banco BBVA Argentina S.A. For more information click<br>here. |
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| · | AsociaciónCivil por los Consumidores y el Medio Ambiente (ACYMA) vs/ Banco BBVA Argentina Ordinary Proceeding " (File 25136/2023), en trámitepor ante el Juzgado Nacional de Primera Instancia en lo Comercial Nro 9 Secretaría Nro. 18 de la Ciudad Autónoma de BuenosAires. Banco BBVA Argentina S.A. has been notified of a class action filed by the ACYMA. The Association, acting on behalf of consumers,<br>claims payment to financial consumers of all amounts corresponding to interest due on repayments made by BBVA, calculated from the date<br>of undue collection and/ or from the date on which it was appropriate to make the discount for promotion, until its effective refund.<br>It is important to remark that this action is informed even though it is materially impossible to determine to date, whether the claim<br>has a significant economic importance, since such claim is brought for an indeterminate amount, materially impossible to be determined<br>with certainty today. The Bank is analyzing the content of the lawsuit and defining the course of action, thus considering that even in<br>the hypothetical case of an adverse decision regarding this dispute, such circumstance will not have a significant impact on its assets<br>and activities. For more information click here. |
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Corporate Bonds
| · | As of<br>September 23, 2024, the Bank has issued corporate bonds Class 29 at a face value of ARS 24.5 billion, at BADLAR+5% rate, maturity on June<br>23, 2025 and quarterly interest payments. |
|---|
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Main Regulatory Changes
Easing on access to the FX market(Communication “A” 8073 & 8074, 07.23.2024). As of July 24, 2024, restrictions to access “MEP” and “CCL” markets for individuals who were receiving some sort of social benefit, are lifted. There is an improved schedule for importers to access the FX market as of August 1, 2024, and the amount that individuals can charge on service exports has increased to USD 24.000 (with no obligation of changing them in the FX market).
Monetary Policy Rate (Press Release11.01.2024). The monetary policy rate has been set at 35% (previously 40%).
Glossary
Active clients: holders of at least one active product. An active product is in most cases a product with at least “one movement” in the last 3 months, or a minimum balance.
APR: Annual Percentage Rate
APY: Annual Percentage Yield
Cost of Risk (accumulated): Year to date accumulated loan loss allowances / Average total loans.
Average total loans: average between previous year-end Total loans and other financing and current period Total loans and other financing.
Cost of Risk (quarterly): Current period Loan loss allowances / Average total loans. Average total loans: average between previous quarter-end Total loans and other financing and current period Total loans and other financing.
Coverage ratio: Quarterly allowances under the Expected Credit Loss model / total non-performing portfolio.
Digital clients: we consider a customer to be an active user of online banking when they have been logged at least once within the last three months using the internet or a cell phone and SMS banking.
Efficiency ratio (Excl. inflationadjustments, accumulated): Accumulated (Personnel benefits+ Administrative expenses + Depreciation & Amortization) / Accumulated (Net Interest Income + Net Fee Income + Net Income from measurement of Financial Instruments at Fair Value through P&L + Net income from write-down of assets at amortized cost and at fair value through OCI + Foreign exchange and gold gains + some concepts included in Other net operating income).
Efficiency ratio (Excl. inflationadjustments, quarterly): (Personnel benefits+ Administrative expenses + Depreciation & Amortization) / (Net Interest Income + Net Fee Income + Net Income from measurement of Financial Instruments at Fair Value through P&L + Net income from write-down of assets at amortized cost and at fair value through OCI + Foreign exchange and gold gains + some concepts included in Other net operating income).
**Efficiency ratio (accumulated):**Accumulated (Personnel benefits+ Administrative expenses + Depreciation & Amortization) / Accumulated (Net Interest Income + Net Fee Income + Net Income from measurement of Financial Instruments at Fair Value through P&L + Net income from write-down of assets at amortized cost and at fair value through OCI + Foreign exchange and gold gains + some concepts included in Other net operating income+ Income from net monetary position).
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Efficiency ratio (quarterly): (Personnel benefits+ Administrative expenses + Depreciation & Amortization) / (Net Interest Income + Net Fee Income + Net Income from measurement of Financial Instruments at Fair Value through P&L + Net income from write-down of assets at amortized cost and at fair value through OCI + Foreign exchange and gold gains + some concepts included in Other net operating income+ Income from net monetary position).
Liquidity Ratio: (Cash and deposits in banks + Debt securities at fair value through P&L (Excl. Private securities) + Net REPO transactions + Other debt securities (Excl. Private securities) + Overnight transactions in foreign banks/ Total Deposits.
Mobile clients: customers who have been active in online banking at least once in the last three months using a mobile device.
Net Interest Margin (NIM) –(quarterly): Quarterly Net Interest Income / Average quarterly interest earning assets.
Public Sector Exposure (excl. BCRA): (National and Provincial Government public debt + Loans to the public sector + REPO transactions) / Total Assets.
ROA (accumulated): Accumulated net Income of the period attributable to owners of the parent / Total Average Assets. Total Average Assets is calculated as the average between total assets on December of the previous year and total assets in the current period, expressed in local currency. Calculated over a 365-day year.
ROA (quarterly): Net Income of the period attributable to owners of the parent / Total Average Assets. Total Average Assets is calculated as the average between total assets on the previous quarter-end and total assets in the current period, expressed in local currency. Calculated over a 365-day year.
ROE (accumulated): Accumulated net Income of the period attributable to owners of the parent / Average Equity attributable to owners of the parent. Average Equity is calculated as the average between equity in December of the previous year and equity in the current period, expressed in local currency. Calculated over a 365-day year.
ROE (quarterly): Net Income of the period attributable to owners of the parent / Average Equity attributable to owners of the parent. Average Equity is calculated as the average between equity on the previous quarter end and equity in the current period, expressed in local currency. Calculated over a 365-day year.
Spread: (Quarterly Interest Income / Quarterly average Interest-earning Assets) – (Quarterly Interest Expenses / Quarterly average interest-bearing liabilities).
Other terms
n.m.: not meaningful. Implies an increase above 500% and a decrease below -500%.
N/A: not applicable.
Bps: basis points.
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Balance Sheet
| BALANCE<br> SHEET | ||||
|---|---|---|---|---|
| In<br> millions of AR - Inflation adjusted | ∆<br> % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| Assets | ||||
| Cash and deposits in<br> banks | 1,626,639 | 1,478,068 | 85.9% | 104.6% |
| Cash | 799,777 | 779,474 | 151.0% | 157.6% |
| Financial<br> institutions and correspondents | 818,583 | 698,045 | 24.2% | 45.7% |
| BCRA | 738,399 | 641,699 | 21.7% | 40.0% |
| Other<br> local and foreign financial institutions | 80,184 | 56,346 | 47.4% | 109.8% |
| Other | 8,279 | 549 | (100.0%) | (100.0%) |
| Debt securities at<br> fair value through profit or loss | 282,821 | 332,015 | (70.7%) | (75.0%) |
| Derivatives | 6,371 | 39,869 | 37.2% | (78.1%) |
| Repo transactions | 312,704 | 941,722 | (100.0%) | (100.0%) |
| Other financial assets | 173,030 | 268,919 | 23.6% | (20.5%) |
| Loans and other financing | 4,277,682 | 4,179,655 | 27.0% | 30.0% |
| Non-financial<br> public sector | 1,908 | 173 | 6.1% | n.m |
| B.C.R.A | - | - | N/A | N/A |
| Other<br> financial institutions | 24,543 | 13,998 | 70.2% | 198.4% |
| Non-financial private<br> sector and residents abroad | 4,251,231 | 4,165,484 | 26.8% | 29.4% |
| Other debt securities | 2,530,252 | 3,410,295 | 1.3% | (24.8%) |
| Financial assets pledged<br> as collateral | 518,298 | 447,552 | (53.5%) | (46.1%) |
| Current income tax<br> assets | 50,822 | 378 | (10.6%) | n.m |
| Investments in equity<br> instruments | 10,539 | 9,191 | (9.6%) | 3.6% |
| Investments in subsidiaries<br> and associates | 20,366 | 23,098 | 4.5% | (7.9%) |
| Property and equipment | 622,213 | 594,460 | (5.8%) | (1.4%) |
| Intangible assets | 64,786 | 63,788 | 3.4% | 5.0% |
| Deferred income tax<br> assets | 28,202 | 7,019 | (3.7%) | 286.8% |
| Other non-financial<br> assets | 172,320 | 197,632 | 32.3% | 15.3% |
| Non-current assets<br> held for sale | 1,718 | 1,665 | (18.3%) | (15.7%) |
| Total<br> Assets | 10,698,763 | 11,995,326 | 17.3% | 4.6% |
| Liabilities | ||||
| Deposits | 6,515,416 | 8,015,039 | 30.9% | 6.4% |
| Non-financial<br> public sector | 202,230 | 64,454 | (16.0%) | 163.6% |
| Financial<br> sector | 2,159 | 3,975 | 21.7% | (33.9%) |
| Non-financial<br> private sector and residents abroad | 6,311,027 | 7,946,610 | 32.4% | 5.2% |
| Liabilities at fair<br> value through profit or loss | 218 | 268 | (45.4%) | (55.6%) |
| Derivatives | 576 | 7,183 | n.m | (14.7%) |
| Reverse REPO transactions | 199,038 | - | (100.0%) | N/A |
| Other financial liabilities | 997,380 | 649,993 | (9.3%) | 39.2% |
| Financing received<br> from the B.C.R.A. and other financial institutions | 52,878 | 72,561 | 249.9% | 155.0% |
| Corporate bonds issued | 12,392 | - | 188.0% | N/A |
| Current income tax<br> liabilities | 4,638 | 66,485 | 99.4% | (86.1%) |
| Provisions | 36,263 | 33,053 | 0.9% | 10.7% |
| Deferred income tax<br> liabilities | - | 85,145 | N/A | (100.0%) |
| Other non-financial<br> liabilities | 515,678 | 702,981 | (11.7%) | (35.3%) |
| Total<br> Liabilities | 8,334,477 | 9,632,708 | 21.9% | 5.5% |
| Equity | ||||
| Share Capital | 613 | 613 | - | - |
| Non-capitalized contributions | 6,745 | 6,745 | - | - |
| Capital adjustments | 834,186 | 835,004 | 0.1% | - |
| Reserves | 1,173,294 | 1,310,580 | (0.1%) | (10.5%) |
| Retained earnings | - | - | N/A | N/A |
| Other accumulated comprehensive<br> income | 141,830 | (58,637) | (51.5%) | 217.3% |
| Income for the period | 170,711 | 232,478 | 58.4% | 16.3% |
| Equity<br> attributable to owners of the Parent | 2,327,379 | 2,326,783 | 1.1% | 1.2% |
| Equity<br> attributable to non-controlling interests | 36,907 | 35,835 | (1.4%) | 1.6% |
| Total<br> Equity | 2,364,286 | 2,362,618 | 1.1% | 1.2% |
| Total<br> Liabilities and Equity | 10,698,763 | 11,995,326 | 17.3% | 4.6% |
All values are in US Dollars.
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Balance Sheet – Five quarters
| BALANCE<br> SHEET | ||||
|---|---|---|---|---|
| In<br> millions of AR - Inflation adjusted | ||||
| 2Q24 | 1Q24 | 4Q23 | 3Q23 | |
| Assets | ||||
| Cash and deposits in banks | 1,626,639 | 1,692,373 | 2,303,962 | 1,478,068 |
| Cash | 799,777 | 960,478 | 1,466,036 | 779,474 |
| Financial<br> institutions and correspondents | 818,583 | 731,895 | 837,926 | 698,045 |
| B.C.R.A | 738,399 | 618,993 | 725,395 | 641,699 |
| Other<br> local and foreign financial institutions | 80,184 | 112,902 | 112,531 | 56,346 |
| Other | 8,279 | - | - | 549 |
| Debt securities at fair value through profit or loss | 282,821 | 303,940 | 455,739 | 332,015 |
| Derivatives | 6,371 | 16,002 | 20,162 | 39,869 |
| Repo transactions | 312,704 | 2,702,738 | 2,423,846 | 941,722 |
| Other financial assets | 173,030 | 136,302 | 183,668 | 268,919 |
| Loans and other financing | 4,277,682 | 3,470,840 | 3,982,214 | 4,179,655 |
| Non-financial<br> public sector | 1,908 | 87 | 293 | 173 |
| B.C.R.A | - | - | - | - |
| Other<br> financial institutions | 24,543 | 22,688 | 31,147 | 13,998 |
| Non-financial<br> private sector and residents abroad | 4,251,231 | 3,448,065 | 3,950,774 | 4,165,484 |
| Other debt securities | 2,530,252 | 1,164,136 | 1,527,520 | 3,410,295 |
| Financial assets pledged as collateral | 518,298 | 353,871 | 527,404 | 447,552 |
| Current income tax assets | 50,822 | 271 | 323 | 378 |
| Investments in equity instruments | 10,539 | 10,326 | 10,504 | 9,191 |
| Investments in subsidiaries and associates | 20,366 | 21,092 | 24,928 | 23,098 |
| Property and equipment | 622,213 | 619,079 | 601,148 | 594,460 |
| Intangible assets | 64,786 | 67,687 | 66,799 | 63,788 |
| Deferred income tax assets | 28,202 | 40,478 | 5,737 | 7,019 |
| Other non-financial assets | 172,320 | 174,034 | 210,135 | 197,632 |
| Non-current assets held for sale | 1,718 | 1,718 | 1,718 | 1,665 |
| Total<br> Assets | 10,698,763 | 10,774,887 | 12,345,807 | 11,995,326 |
| Liabilities | ||||
| Deposits | 6,515,416 | 6,348,969 | 7,336,126 | 8,015,039 |
| Non-financial<br> public sector | 202,230 | 215,179 | 68,605 | 64,454 |
| Financial<br> sector | 2,159 | 4,127 | 5,187 | 3,975 |
| Non-financial<br> private sector and residents abroad | 6,311,027 | 6,129,663 | 7,262,334 | 7,946,610 |
| Liabilities at fair value through profit or loss | 218 | 10,656 | 20,824 | 268 |
| Derivatives | 576 | 5,315 | 4,324 | 7,183 |
| Reverse Repo Transactions | 199,038 | - | - | - |
| Other financial liabilities | 997,380 | 718,860 | 903,601 | 649,993 |
| Financing received from the B.C.R.A. and other financial<br> institutions | 52,878 | 28,429 | 56,825 | 72,561 |
| Corporate bonds issued | 12,392 | 16,349 | 25,836 | - |
| Current income tax liabilities | 4,638 | 254,976 | 387,371 | 66,485 |
| Provisions | 36,263 | 69,209 | 41,775 | 33,053 |
| Deferred income tax liabilities | - | - | 47,202 | 85,145 |
| Other non-financial liabilities | 515,678 | 497,168 | 651,142 | 702,981 |
| Total<br> Liabilities | 8,334,477 | 7,949,931 | 9,475,026 | 9,632,708 |
| Equity | ||||
| Share Capital | 613 | 613 | 613 | 613 |
| Non-capitalized contributions | 6,745 | 6,745 | 6,745 | 6,745 |
| Capital adjustments | 834,186 | 835,004 | 835,004 | 835,004 |
| Reserves | 1,173,294 | 1,310,580 | 1,310,580 | 1,310,580 |
| Retained earnings | - | 331,684 | - | - |
| Other accumulated comprehensive income | 141,830 | 258,963 | 349,935 | (58,637) |
| Income<br> for the period | 170,711 | 46,235 | 331,684 | 232,478 |
| Equity<br> attributable to owners of the Parent | 2,327,379 | 2,789,824 | 2,834,561 | 2,326,783 |
| Equity<br> attributable to non-controlling interests | 36,907 | 35,132 | 36,220 | 35,835 |
| Total<br> Equity | 2,364,286 | 2,824,956 | 2,870,781 | 2,362,618 |
| Total<br> Liabilities and Equity | 10,698,763 | 10,774,887 | 12,345,807 | 11,995,326 |
All values are in US Dollars.
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Balance Sheet – Foreign Currency Exposure
| FOREIGN<br> CURRENCY EXPOSURE | ||||
|---|---|---|---|---|
| In<br> millions of AR - Inflation adjusted | ∆<br> % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| Assets | ||||
| Cash and deposits in<br> banks | 1,369,254 | 1,359,150 | 84.7% | 86.1% |
| Debt securities at<br> fair value through profit or loss | 282,214 | 245,723 | (99.9%) | (99.9%) |
| Other financial assets | 40,369 | 51,146 | (11.3%) | (30.0%) |
| Loans and other financing | 552,121 | 255,008 | 50.9% | 226.7% |
| Other<br> financial institutions | 31 | 6 | (77.4%) | 16.7% |
| Non-financial<br> private sector and residents abroad | 552,082 | 254,999 | 50.9% | 226.7% |
| Other debt securities | 82,572 | 51,791 | (10.2%) | 43.1% |
| Financial assets pledged<br> as collateral | 41,561 | 27,621 | (22.6%) | 16.5% |
| Investments in equity<br> instruments | 648 | 501 | 3.9% | 34.3% |
| Total<br> foreign currency assets | 2,368,739 | 1,990,940 | 48.0% | 76.0% |
| Liabilities | ||||
| Deposits | 1,928,016 | 1,603,640 | 71.3% | 105.9% |
| Non-Financial<br> Public Sector | 186,506 | 49,514 | (55.3%) | 68.5% |
| Financial<br> Sector | 786 | 878 | 9.9% | (1.6%) |
| Non-financial<br> private sector and residents abroad | 1,740,723 | 1,553,249 | 84.9% | 107.2% |
| Other financial liabilities | 136,778 | 90,361 | 9.9% | 66.4% |
| Financing received<br> from the B.C.R.A. and other financial institutions | 12,607 | 7,861 | 236.5% | 439.6% |
| Other non financial<br> liabilities | 62,477 | 69,117 | 8.3% | (2.1%) |
| Total<br> foreign currency liabilities | 2,139,878 | 1,770,979 | 66.5% | 101.2% |
| Foreign<br> Currency Net Position - AR | 228,861 | 219,961 | (125.4%) | (126.4%) |
| Foreign<br> Currency Net Position - | 251 | 628 | (123.8%) | (109.5%) |
| *Wholesale U.S. dollar foreign exchange<br> rates on BCRA’s Communication “A” 3500, as of the end of period. |
All values are in US Dollars.
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Income Statement - Quarterly
| INCOME<br> STATEMENT | ||||
|---|---|---|---|---|
| In<br> millions of AR - Inflation adjusted | ∆<br> % | |||
| 2Q24 | 3Q23 | QoQ | YoY | |
| Interest<br> income | 1,091,386 | 1,813,491 | (30.0%) | (58.0%) |
| Interest<br> expense | (330,505) | (978,465) | 9.0% | 69.0% |
| Net<br> interest income | 760,881 | 835,026 | (40.0%) | (45.0%) |
| Fee<br> income | 132,016 | 120,070 | 1.0% | 11.0% |
| Fee<br> expenses | (66,083) | (67,663) | 6.0% | 8.0% |
| Net<br> fee income | 65,933 | 52,407 | 8.0% | 36.0% |
| Net<br> income from financial instruments at fair value through P&L | 34,757 | 25,251 | (16.0%) | 16.0% |
| Net<br> loss from write-down of assets at amortized cost and fair value through OCI | 15,327 | 12,570 | 261.0% | 340.0% |
| Foreign<br> exchange and gold gains | 22,803 | 6,612 | (71.0%) | 1.0% |
| Other<br> operating income | 32,139 | 32,919 | (9.0%) | (11.0%) |
| Loan<br> loss allowances | (46,591) | (23,849) | 11.0% | (73.0%) |
| Net<br> operating income | 885,249 | 940,936 | (31.0%) | (35.0%) |
| Personnel<br> benefits | (122,958) | (131,066) | 18.0% | 23.0% |
| Administrative<br> expenses | (131,337) | (146,295) | 6.0% | 16.0% |
| Depreciation<br> and amortization | (20,115) | (13,506) | 18.0% | (22.0%) |
| Other<br> operating expenses | (109,972) | (133,098) | 31.0% | 43.0% |
| Operating<br> expenses | (384,382) | (423,965) | 18.0% | 25.0% |
| Operating<br> income | 500,867 | 516,971 | (41.0%) | (43.0%) |
| Income<br> from associates and joint ventures | 2,791 | 56 | (88.0%) | n.m |
| Income<br> from net monetary position | (303,670) | (469,903) | 44.0% | 64.0% |
| Income<br> before income tax | 199,988 | 47,124 | (38.0%) | 163.0% |
| Income<br> tax | (73,405) | (16,578) | 66.0% | (49.0%) |
| Income<br> for the period | 126,583 | 30,546 | (22.0%) | 225.0% |
| Owners<br> of the parent | 124,475 | 29,759 | (20.0%) | 235.0% |
| Non-controlling<br> interests | 2,108 | 787 | (122.0%) | (159.0%) |
| Other<br> comprehensive Income (1) | (117,464) | (30,103) | 38.0% | (143.0%) |
| Total<br> comprehensive income | 9,119 | 443 | 186.0% | n.m |
| (1)<br> Net of Income Tax. |
All values are in US Dollars.
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Income Statement – 5 Quarters
| INCOME<br> STATEMENT | ||||
|---|---|---|---|---|
| In<br> millions of AR - Inflation adjusted | ||||
| 2Q24 | 1Q24 | 4Q23 | 3Q23 | |
| Interest income | 1,091,386 | 1,697,148 | 1,773,177 | 1,813,491 |
| Interest expense | (330,505) | (649,814) | (773,907) | (978,465) |
| Net<br> interest income | 760,881 | 1,047,334 | 999,270 | 835,026 |
| Fee income | 132,016 | 121,100 | 142,616 | 120,070 |
| Fee expenses | (66,083) | (53,955) | (70,858) | (67,663) |
| Net<br> fee income | 65,933 | 67,145 | 71,758 | 52,407 |
| Net income from financial instruments<br> at fair value through P&L | 34,757 | 37,055 | (140,476) | 25,251 |
| Net loss from write-down of<br> assets at amortized cost and fair value through OCI | 15,327 | 83,658 | 59,514 | 12,570 |
| Foreign exchange and gold gains | 22,803 | 13,600 | 398,027 | 6,612 |
| Other operating income | 32,139 | 37,736 | 43,739 | 32,919 |
| Loan loss allowances | (46,591) | (35,737) | (41,721) | (23,849) |
| Net<br> operating income | 885,249 | 1,250,791 | 1,390,111 | 940,936 |
| Personnel benefits | (122,958) | (119,399) | (134,490) | (131,066) |
| Administrative expenses | (131,337) | (137,291) | (103,125) | (146,295) |
| Depreciation and amortization | (20,115) | (13,668) | (15,209) | (13,506) |
| Other operating expenses | (109,972) | (141,277) | (173,846) | (133,098) |
| Operating<br> expenses | (384,382) | (411,635) | (426,670) | (423,965) |
| Operating<br> income | 500,867 | 839,156 | 963,441 | 516,971 |
| Income from associates and<br> joint ventures | 2,791 | (3,836) | 116 | 56 |
| Income from net monetary position | (303,670) | (758,120) | (716,617) | (469,903) |
| Income<br> before income tax | 199,988 | 77,200 | 246,940 | 47,124 |
| Income tax | (73,405) | (31,796) | (148,933) | (16,578) |
| Income<br> for the period | 126,583 | 45,404 | 98,007 | 30,546 |
| Owners<br> of the parent | 124,475 | 46,236 | 99,206 | 29,759 |
| Non-controlling<br> interests | 2,108 | (832) | (1,199) | 787 |
| Other<br> comprehensive Income (OCI)(1) | (117,464) | (91,229) | 410,020 | (30,103) |
| Total<br> comprehensive income | 9,119 | (45,825) | 508,027 | 443 |
| (1)<br> Net of Income Tax. |
All values are in US Dollars.
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Ratios
| QUARTERLY<br> ANNUALIZED RATIOS | BBVA<br> ARGENTINA CONSOLIDATED | ||||
|---|---|---|---|---|---|
| In<br> % | ∆<br> bps | ||||
| 3Q24 | 2Q24 | 3Q23 | QoQ | YoY | |
| Profitability | |||||
| Efficiency Ratio | 59.2% | 55.3% | 82.4% | 394<br> bps | (2,318)bps |
| ROA | 3.4% | 4.7% | 0.9% | (125)bps | 246<br> bps |
| ROE | 16.9% | 19.5% | 5.1% | (262)bps | 1,182<br> bps |
| Liquidity | |||||
| Liquid assets / Total<br> Deposits | 67.3% | 69.6% | 76.6% | (2,247)bps | (1,466)bps |
| Capital | |||||
| Regulatory Capital<br> Ratio | 22.25% | 25.32% | 27.13% | (308)bps | (488)bps |
| TIER I Capital Ratio<br> (Ordinary Capital Level 1/ RWA) | 22.25% | 25.32% | 27.13% | (308)bps | (488)bps |
| Asset<br> Quality | |||||
| Total non-performing<br> portfolio / Total portfolio | 1.18% | 1.18% | 1.42% | 0<br> bps | (24)bps |
| Allowances /Total<br> non-performing portfolio | 152.98% | 165.50% | 186.27% | (1,251)bps | (3,329)bps |
| Cost of Risk | 3.31% | 4.72% | 2.14% | (141)bps | 116<br> bps |
| ACCUMULATED<br> ANNUALIZED RATIOS | BBVA<br> ARGENTINA CONSOLIDATED | ||||
| --- | --- | --- | --- | --- | --- |
| In<br> % | ∆<br> bps | ||||
| 3Q24 | 2Q24 | 3Q23 | QoQ | YoY | |
| Profitability | |||||
| Efficiency Ratio | 59.7% | 59.9% | 63.8% | (20)bps | (412)bps |
| ROA | 2.9% | 3.0% | 2.6% | (8)bps | 33<br> bps |
| ROE | 13.9% | 13.3% | 13.5% | 62<br> bps | 34<br> bps |
| Liquidity | |||||
| Liquid assets / Total<br> Deposits | 67.3% | 69.6% | 76.6% | (2,247)bps | (1,466)bps |
| Capital | |||||
| Regulatory Capital<br> Ratio | 22.2% | 25.3% | 27.1% | (308)bps | (488)bps |
| TIER I Capital Ratio<br> (Ordinary Capital Level 1/ RWA) | 22.2% | 25.3% | 27.1% | (308)bps | (488)bps |
| Asset<br> Quality | |||||
| Total non-performing<br> portfolio / Total portfolio | 1.18% | 1.18% | 1.42% | 0<br> bps | (24)bps |
| Allowances /Total<br> non-performing portfolio | 152.98% | 165.50% | 186.27% | (1,251)bps | (3,329)bps |
| Cost of Risk | 3.32% | 4.17% | 3.40% | (85)bps | (8)bps |
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About BBVA Argentina
BBVA Argentina (NYSE; BYMA; MAE: BBAR; LATIBEX: XBBAR) is a subsidiary of the BBVA Group, the main shareholder since 1996. In Argentina, it is one of the leading private financial institutions since 1886. Nationwide, BBVA Argentina offers retail and corporate banking to a broad customer base, including: individuals, SME’s, and large-sized companies.
BBVA Argentina’s purpose is to bring the age of opportunities to everyone, based on our customers’ real needs, providing the best solutions, and helping them make the best financial decisions through an easy and convenient experience. The institution relies on solid values: “The customer comes first, We think big and We are one team”. At the same time, its responsible banking model aspires to achieve a more inclusive and sustainable society.
Investor Relations Contact
Carmen Morillo Arroyo
Chief Financial Officer
Inés Lanusse
Investor Relations Officer
Belén Fourcade
Investor Relations
ir.bbva.com.ar
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Banco BBVA Argentina S.A. | ||||
|---|---|---|---|---|
| Date: | November 20, 2024 | By: | /s/ Carmen Morillo Arroyo | |
| Name: | Carmen Morillo Arroyo | |||
| Title: | Chief Financial Officer |