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 May 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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Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
| Yes | No | X |
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Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
| 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:
| Yes | No | X |
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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 first quarter earnings for fiscal year 2024. |
Banco BBVA ArgentinaS.A. announces First Quarter 2024 results
BuenosAires, May 22, 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 first quarter (1Q24), ended on March 31, 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 March 31, 2024.
1Q24 Highlights
| · | BBVA<br>Argentina’s inflation adjusted net income in 1Q24 was $34.2 billion, 53.7% lower than the $73.7 billion reported on the fourth quarter<br>of 2023 (4Q23), and 41.4% lower than the $58.3 billion reported on the first quarter of 2023 (1Q23). |
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| · | In 1Q24, BBVA Argentina<br>posted an inflation adjusted average return on assets (ROAA) of 1.6% and an inflation adjusted average return on equity (ROAE) of 6.6%. |
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| · | Operating income in 1Q24<br>was $631.2 billion, 12.9% lower than the $724.7 billion recorded in 4Q23 and 106.6% over the $305.5 billion recorded in 1Q23. |
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| · | In terms<br>of activity, total consolidated financing to the private sector in 1Q24 totaled $2.7 trillion, falling 12.7% in real terms compared to<br>4Q23, and 21.9% compared to 1Q23. In the quarter, the variation was mainly driven by a decline in credit cards by 17.9%, in discountedinstruments by 27.1% and in other loans by 19.7%. This was offset by an increase in prefinancing and financing of exports<br>by 26.0%. BBVA’s consolidated market share of private sector loans reached 10.08% as of 1Q24. |
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| · | Total<br>consolidated deposits in 1Q24 totaled $4.8 trillion, decreasing 13.5% in real terms during the quarter, and 21.7% YoY. Quarterly decrease<br>was mainly explained by a fall by 25.3% and 8.1% in savings and checking accounts respectively. The Bank’s consolidated market share<br>of private deposits reached 7.37% as of 1Q24. |
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| · | As of<br>1Q24, the non-performing loan ratio (NPL) reached 1.23%, with a 173.77% coverage ratio. |
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| · | The accumulated efficiency<br>ratio in 1Q24 was 65.4%, deteriorating compared to 4Q23’s 58.6%, and to 1Q23’s 62.4%. |
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| · | As of 1Q24, BBVA Argentina<br>reached a regulatory capital ratio of 35.6%, entailing a $1.4 trillion or 336.0% excess over minimum regulatory requirement. Tier I ratio<br>was 35.6%. |
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| · | Total<br>liquid assets represented 91.9% of the Bank’s total deposits as of 1Q24. |
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Message from the CFO
“The new Milei government substantially modifiedthe economic policy framework, and focused its efforts on a strong fiscal and monetary adjustment to reduce inflation. The reduction offiscal deficit in the first months of the year, the relative currency stability observed after the significant depreciation of the Argentineanpeso in December 2023 in a context of accumulation of international reserves, and the contractionof economic activity, have allowed a recent moderation of the inflation measured monthly, which, however, still remains high.
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In spite of the uncertainty and related risks, it islikely, according to BBVA Research, that these factors could set the bases for an inflation slowdown in the following months. This wouldeventually be complemented by additional measures in the context of the release of a more integral stabilization program. BBVA Researchestimates annual inflation will end close to 155% (re-estimated from 175%, and versus 211% by the end of 2023), and that GDP will droparound 4.0% this year (versus a 1.6% fall in 2023). It is important to mention that interest rates have fallen quicker than expected,and it is expected that they should drop further as inflation continues to decline.
As of March 2024, private credit in pesos for the systemgrew 171% YoY, while BBVA Argentina increased its private loan portfolio in pesos by 193%^[1]^. Neither the System, norBank’s YoY loan growth exceeded that of inflation (which reached 287.9% YoY as of March 2024). Nonetheless, BBVA Argentina´sconsolidated market share increased 75 bps from 9.33% to 10.08% YoY, exceeding the two digit mark for the first time in more than a decade.Regarding consolidated private deposits, the system grew 173% while the Bank grew 194%, without beating inflation in the year in bothcases. Consolidated market share of private deposits was 7.37%, higher than the 6.83% recorded in the prior year.
Regarding BBVA Argentina, as of April 26 2024, the Boardnamed Jorge Bledel as the company CEO (ad-referendum of the approval of the BCRA). Jorge Bledel has worked for more than 20 years in theBBVA Group, where he has taken different roles and responsible positions. In Argentina, he was responsible for the innovation and businessmodels, as well as business development. Up to now, he had been the head at Openpay – a startup acquired in 2017 by BBVA and ispresent in Mexico, Colombia, Peru and Argentina- and was responsible for the South America Client Solutions department. From this place,Jorge has been a key asset in the continuous boost of digital transformation of the different banks in South America, and of sustainablebusiness growth.
As of this date, the Bank has announced the paymentof dividends in 3 installments in cash or kind. The total amount due will be $264.2 billion, inflation adjusted as of December 31, 2023,and pursuant to BCRA law it must be updated to the current currency value of each payment date.
In relation to BBVA Argentina performance in the firstquarter of 2024, operating income was the product of lower operating expenses, although denoting a decline in operating income, by contrastwith the results in 4Q23, mostly generated by extraordinary results due to the devaluation of the peso versus the U.S. dollar in December2023, and the inherent seasonality of the first quarter of the year.
On the other hand, as of March 2024, BBVA Argentinareached a private deposit NPL of 1.23%, way below the 2.00% ratio of the System, last available indicator as of February 2024. Concerningliquidity and solvency indicators, the Bank ends the quarter with 91.9% and 35.6% respectively, levels which undoubtedly allow to addressbusiness growth in the case of an economic recovery.
On digitalization, our service offering has evolvedin such way that by the end of March 2024, mobile monetary transactions increased 71% compared to the same period a year back. In thequarter, new client acquisition through digital channels over traditional ones was 81%, while in March 2023 it was 76%.
Regarding ESG, BBVA Argentina has a corporate responsibilitywith society, inherent to the Bank’s business model, which bolsters inclusion, financial education and supports scientific researchand culture. The Bank works with the highest integrity, long-term vision and best practices, and is present through the BBVA Group inthe main sustainability indexes.
Lastly, the Bank actively monitors its business, financialconditions and operating results, in the aim of keeping a competitive position to face contextual challenges in a decisive year for theArgentine Republic.”
^1^ Source:BCRA capital balances as of the last day of each period. Siscen information as of March 31, 2024.
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CarmenMorillo Arroyo, CFO at BBVA Argentina
1Q24 Conference Call
Thursday, May 23 - 12:00 p.m. Buenos Aires time (11:00 a.m. EST)
To participate please dial-in:
54-11-3984-5677 (Argentina)
1-844-450-3851 (United States)
1-412-317-6373 (International)
WebPhone: click here
Conference code: BBVA
Webcast& Replay: click here
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Safe Harbor Statement
This press releasecontains certain forward-looking statements that reflect the current views and/or expectations of Banco BBVA Argentina and its managementwith 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 been prepared in accordancewith the accounting framework established by the Central Bank of Argentina (“BCRA”), based on International Financial ReportingStandards (“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 press release containsunaudited 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. is disclosed on aconsolidated basis recorded as Investments in associates (reported under the proportional consolidation method), and the correspondingresults 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 subsidiaries have beenelaborated as of the same dates and periods as Banco BBVA Argentina S.A.’s. In the case of consolidated companies PSA and VWFS,financial statements were prepared considering the B.C.R.A. accounting framework for institutions belonging to “Group C”,considering the model established by the IFRS 9 5.5. “Impairment” section for periods starting as of January 1, 2022, excludingdebt instruments from the non-financial public sector.
The information published by the BBVA Group forArgentina is prepared according to IFRS, without considering the temporary exceptions established by BCRA.
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Quarterly Results
| INCOME STATEMENT | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| Net Interest Income | 751,616 | 508,840 | 4.8% | 54.8% |
| Net Fee Income | 53,974 | 43,933 | (6.4%) | 15.0% |
| Net income from measurement of financial instruments at fair value through P&L | (105,662) | 27,065 | 126.4% | 3.0% |
| Net income from write-down of assets at amortized cost and at fair value through OCI | 44,764 | 149 | 40.6% | n.m |
| Foreign exchange and gold gains | 299,382 | 4,091 | (96.6%) | 150.1% |
| Other operating income | 32,898 | 21,301 | (13.7%) | 33.3% |
| Loan loss allowances | (31,380) | (31,719) | 14.3% | 15.3% |
| Net operating income | 1,045,592 | 573,660 | (10.0%) | 64.0% |
| Personnel benefits | (101,160) | (85,535) | 11.2% | (5.0%) |
| Adminsitrative expenses | (77,567) | (93,009) | (33.1%) | (11.0%) |
| Depreciation and amortization | (11,440) | (10,939) | 10.1% | 6.0% |
| Other operating expenses | (130,761) | (78,704) | 18.7% | (35.0%) |
| Operarting expenses | (320,928) | (268,187) | 3.5% | (15.4%) |
| Operating income | 724,664 | 305,473 | (12.9%) | 106.6% |
| Income from associates | 87 | (233) | n.m | n.m |
| Income from net monetary position | (539,015) | (220,293) | (5.8%) | (158.9%) |
| Net income before income tax | 185,736 | 84,947 | (68.7%) | (31.6%) |
| Income tax | (112,022) | (26,692) | 78.7% | 10.4% |
| Net income for the period | 73,714 | 58,255 | (53.7%) | (41.4%) |
| Owners of the parent | 74,619 | 58,292 | (53.4%) | (40.3%) |
| Non-controlling interests | (905) | (37) | 30.8% | n.m |
| Other comprehensive Income (OCI) (1) | 308,403 | (2,499) | (122.2%) | n.m |
| Total comprehensive income | 382,117 | 55,756 | (109.0%) | (161.8%) |
| (1) Net of Income Tax. |
All values are in US Dollars.
BBVA Argentina 1Q24 net income was $34.2 billion, decreasing 53.7% or $39.6 billion quarter-over-quarter (QoQ) and 41.4% or $24.1 billion year-over-year (YoY). This implied a quarterly ROAE of 6.6% and a quarterly ROAA of 1.6%.
Quarterly operating results are mainly explained by a lower operating income, mainly due to lower income from foreign exchange and gold gains, particularly in contrast to 4Q23’s extraordinary results which were impacted by the devaluation of the Argentina Peso versus the U.S. dollar. This was offset by (i) better results from income from measurement of financial instruments at fair value (FV) through P&L, also by contrast with the results in 4Q23 where a loss was recorded due to the Dual Bonds valuation, (ii) better net income from write-down of assets at amortized cost and at FV through Other Comprehensive Income (OCI) mainly due to the sale of inflation linked bonds (through the exercise of put options with the BCRA), and (iii) lower personnel benefit and other operating expenses.
Net Income for the period was highly impacted by income from net monetary position. In spite of inflation being slightly lower in the 1Q24 than in 4Q23 (51.6% in 1Q24 vs. 53.3% in 4Q23^[2]^), the increase in the monetary position in 1Q24 versus 4Q23 more than proportionally offset the mentioned decrease in inflation. Such increment was impacted by a higher value of public securities in 4Q23, especially under the FV through OCI valuation criteria.
^2^ Source:Instituto Nacional de Estadística y Censos (INDEC).
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Lastly, the OCI line totaled a loss of $68.6 billion, mainly due to results of financial instruments at fair value through OCI, particularly through the revaluation of inflation-linked (CER) National Treasury bond portfolio.
| EARNINGS PER SHARE | BBVA ARGENTINA CONSOLIDATED | ||||
|---|---|---|---|---|---|
| ∆ % | |||||
| 1Q24 | 4Q23 | 1Q23 | QoQ | YoY | |
| Financial Statement information | |||||
| Net income for the period attributable to owners of the parent (in AR$ millions, inflation adjusted) | 34,777 | 74,619 | 58,292 | (53.4%) | (40.3%) |
| Total shares outstanding ^(1)^ | 612,710 | 612,710 | 612,710 | - | - |
| Market information | |||||
| Closing price of ordinary share at BYMA (in AR$) | 3,068.6 | 1,775.3 | 537.7 | 72.9% | 470.7% |
| Closing price of ADS at NYSE (in USD) | 8.5 | 5.4 | 3.9 | 55.9% | 116.3% |
| Book value per share (in AR$) | 3,467.93 | 2,324.33 | 750.39 | 49.2% | 362.1% |
| Price-to-book ratio (BYMA price) (%) | 88.49 | 76.38 | 71.66 | 15.9% | 23.5% |
| Earnings per share (in AR$) | 56.76 | 121.79 | 95.14 | (53.4%) | (40.3%) |
| Earnings per ADS^(2)^ (in AR$) | 170.28 | 365.36 | 285.41 | (53.4%) | (40.3%) |
| (1) In thousands of shares. | |||||
| (2) Each ADS accounts for 3 ordinary shares |
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Net Interest Income
| NET INTEREST INCOME | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| Net Interest Income | 751,616 | 508,840 | 4.8% | 54.8% |
| Interest Income | 1,333,722 | 966,560 | (4.3%) | 32.1% |
| From government securities | 321,446 | 408,907 | (82.5%) | (86.3%) |
| From private securities | 1,412 | 853 | (0.2%) | 65.2% |
| Interest from loans and other financing | 508,830 | 369,193 | (19.1%) | 11.4% |
| Financial Sector | 4,050 | 2,000 | (20.2%) | 61.5% |
| Overdrafts | 64,620 | 67,055 | 8.1% | 4.2% |
| Discounted Instruments | 183,903 | 74,811 | (24.5%) | 85.6% |
| Mortgage loans | 1,649 | 4,134 | (37.5%) | (75.1%) |
| Pledge loans | 13,986 | 13,312 | (32.2%) | (28.7%) |
| Consumer Loans | 51,379 | 47,032 | (22.3%) | (15.1%) |
| Credit Cards | 114,198 | 101,868 | (20.2%) | (10.5%) |
| Financial leases | 3,770 | 3,413 | (27.5%) | (19.9%) |
| Loans for the prefinancing and financing of exports | 1,647 | 599 | (22.4%) | 113.4% |
| Other loans | 69,628 | 54,969 | (22.6%) | (2.0%) |
| Premiums on reverse REPO transactions | 243,448 | 67,961 | 87.9% | n.m |
| CER/UVA clause adjustment | 257,550 | 118,866 | 35.5% | 193.6% |
| Other interest income | 1,036 | 780 | 4.2% | 38.3% |
| Interest expenses | 582,106 | 457,720 | (16.0%) | 6.8% |
| Deposits | 554,718 | 430,336 | (21.6%) | 1.0% |
| Checking accounts | 136,741 | 49,223 | 46.2% | 306.1% |
| Savings accounts | 3,764 | 1,969 | 39.7% | 167.0% |
| Time deposits | 336,621 | 299,460 | (53.5%) | (47.7%) |
| Investment accounts | 77,592 | 79,684 | (6.1%) | (8.5%) |
| Other liabilities from financial transactions | 5,476 | 722 | (36.9%) | 378.8% |
| Interfinancial loans received | 9,661 | 8,105 | (12.6%) | 4.1% |
| Premiums on REPO transactions | 3 | - | (100.0%) | N/A |
| CER/UVA clause adjustment | 12,247 | 18,554 | 244.8% | 127.6% |
| Other interest expense | 1 | 3 | (100.0%) | (100.0%) |
All values are in US Dollars.
Net interest income for 1Q24 was $787.8 billion, increasing 4.8% or $36.2 billion QoQ, and 54.8% or $278.9 billion YoY. In 1Q24, interest income decreased less than interest expense in monetary terms. The former due to lower income from public securities, and the latter due to lower expenses on time deposits and investment accounts.
In 1Q24, interest income totaled $1.3 trillion, falling 4.3% compared to 4Q23 and increasing 32.1% compared to 1Q23. Quarterly decrease is mainly driven (i) lower income from government securities, explained by the termination of the issuance of LELIQ by the Central Bank in December 2023 reducing its volume on year end, and (ii) lower income from loans, mainly discounted instruments, credit cards and other loans, the latter affected by the fall in floorplanning. This was partially offset by (i) a better income from REPO premiums, at a lower rate than that accrued by LELIQ, and (ii) income from inflation linked bonds.
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Income from government securities decreased 82.5% compared to 4Q23, and 86.3% compared to 1Q23. This is partially due to the lower average position in LELIQ, as previously explained. 87% of these results are explained by government securities at fair value through OCI (of which 99% are Sovereign Treasury securities) and 13% by 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 $411.4 billion, decreasing 19.1% QoQ and increasing 11.4% YoY. Quarterly decline is mainly due to a decrease in average rates, and lower activity, in line with the first quarter of the year’s seasonality.
Income from CER/UVA adjustments increased 35.5% QoQ and 193.6% YoY. Quarterly increase is explained by the delay with which the inflation adjustment effects are recorded, and impact on the subsequent financial statements, with a quarterly inflation similar to the previous quarter. 81% of income from interests from CER/UVA clause adjustments is explained by interests generated by bonds linked to such indexes.
Interest expenses totaled $488.8 billion, denoting a 16.0% decrease QoQ and a 6.8% increase YoY. Quarterly decline is described by lower time deposit and investment account expenses (de-regulation of the minimum rate) and a lower volume.
Interests from time deposits (including investment accounts) explain 47.0% of interest expenses, versus 71.2% the previous quarter. These decreased 53.5% QoQ and 47.7% YoY.
NIM
As of 1Q24, net interest margin (NIM) was 56.1%, above the 50.0% reported in 4Q23. In 1Q24, NIM in pesos was 62.7% and 1.2% in U.S. dollars.
| ASSETS & LIABILITIES PERFORMANCE - TOTAL | ||||||||
|---|---|---|---|---|---|---|---|---|
| In millions of AR. Rates and spreads in annualized % | ||||||||
| 4Q23 | 1Q23 | |||||||
| Interest Earned/Paid | Average Real Rate | Average Balance | Interest Earned/Paid | Average Real Rate | Average Balance | Interest Earned/Paid | Average Real Rate | |
| Total interest-earning assets | 1,276,536 | 90.9% | 5,962,755 | 1,333,722 | 88.7% | 6,589,751 | 966,560 | 59.5% |
| Debt securities | 796,706 | 103.5% | 2,816,442 | 771,355 | 108.7% | 3,303,092 | 562,920 | 69.1% |
| Loans to customers/financial institutions | 479,815 | 78.6% | 2,944,063 | 562,358 | 75.8% | 3,176,705 | 403,605 | 51.5% |
| Loans to the BCRA | 6 | 20.1% | 312 | 6 | 7.7% | 8 | 31 | 1622.2% |
| Other assets | 9 | 0.0% | 201,937 | 3 | 0.0% | 109,945 | 4 | 0.0% |
| Total non interest-earning assets | - | 0.0% | 2,028,453 | - | 0.0% | 2,265,252 | - | 0.0% |
| Total Assets | 1,276,536 | 64.3% | 7,991,207 | 1,333,722 | 66.2% | 8,855,003 | 966,560 | 44.3% |
| Total interest-bearing liabilities | 488,768 | 52.3% | 3,622,063 | 582,106 | 63.8% | 4,531,958 | 457,720 | 41.0% |
| Savings accounts | 5,259 | 1.4% | 1,424,579 | 3,763 | 1.0% | 1,658,532 | 1,970 | 0.5% |
| Time deposits and investment accounts | 271,731 | 99.0% | 1,534,129 | 426,459 | 110.3% | 2,429,204 | 397,697 | 66.4% |
| Debt securities issued | 3,312 | 118.4% | 16,010 | 5,155 | 127.8% | 171 | 198 | 470.1% |
| Other liabilities | 208,466 | 73.6% | 647,345 | 146,729 | 89.9% | 444,052 | 57,855 | 52.8% |
| Total non-interest-bearing liabilities | - | 0.0% | 4,369,144 | - | 0.0% | 4,323,044 | - | 0.0% |
| Total liabilities and equity | 488,768 | 24.6% | 7,991,207 | 582,106 | 28.9% | 8,855,003 | 457,720 | 21.0% |
| NIM - Total | 56.1% | 50.0% | 31.3% | |||||
| Spread - Total | 38.6% | 25.0% | 18.5% | |||||
| 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.
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| --- | | ASSETS & LIABILITIES PERFORMANCE - AR | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | In millions of AR. Rates and spreads in annualized % | | | | | | | | | | | | | 4Q23 | | | 1Q23 | | | | | Interest Earned/Paid | Average Real Rate | Average Balance | Interest Earned/Paid | Average Real Rate | Average Balance | Interest Earned/Paid | Average Real Rate | | Total interest-earning assets | 1,274,493 | 101.8% | 5,396,094 | 1,331,305 | 97.9% | 6,354,594 | 965,214 | 61.6% | | Debt securities | 796,626 | 116.1% | 2,461,224 | 771,246 | 124.3% | 3,264,073 | 562,753 | 69.9% | | Loans to customers/financial institutions | 477,861 | 87.9% | 2,739,759 | 560,053 | 81.1% | 2,982,375 | 402,430 | 54.7% | | Loans to the BCRA | 6 | 20.4% | 311 | 6 | 7.7% | 4 | 31 | 3244.4% | | Other assets | - | 0.0% | 194,801 | - | 0.0% | 108,142 | - | 0.0% | | Total non interest-earning assets | - | 0.0% | 1,037,275 | - | 0.0% | 1,058,805 | - | 0.0% | | Total Assets | 1,274,493 | 85.9% | 6,433,369 | 1,331,305 | 82.1% | 7,413,398 | 965,214 | 52.8% | | Total interest-bearing liabilities | 488,621 | 74.2% | 2,814,022 | 581,825 | 82.0% | 3,572,394 | 457,534 | 51.9% | | Savings accounts | 5,240 | 3.9% | 731,628 | 3,750 | 2.0% | 825,886 | 1,955 | 1.0% | | Time deposits and Investment accounts | 271,674 | 114.2% | 1,423,401 | 426,410 | 118.9% | 2,311,156 | 397,643 | 69.8% | | Debt securities issued | 3,312 | 118.4% | 16,010 | 5,155 | 127.8% | 171 | 198 | 470.1% | | Other liabilities | 208,395 | 73.7% | 642,983 | 146,511 | 90.4% | 435,181 | 57,738 | 53.8% | | Total non-interest-bearing liabilities | - | 0.0% | 3,873,979 | - | 0.0% | 3,833,166 | - | 0.0% | | Total liabilities and equity | 488,621 | 31.7% | 6,688,001 | 581,825 | 34.5% | 7,405,560 | 457,534 | 25.1% | | NIM - AR | | 62.7% | | | 55.1% | | | 32.4% | | Spread - AR | | 27.6% | | | 15.9% | | | 9.7% | | 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.
| ASSETS & LIABILITIES PERFORMANCE - FOREIGN CURRENCY | BBVA ARGENTINA CONSOLIDATED | |||||||
|---|---|---|---|---|---|---|---|---|
| In millions of AR. Rates and spreads in annualized % | ||||||||
| 4Q23 | 1Q23 | |||||||
| Interest Earned/Paid | Average Real Rate | Average Balance | Interest Earned/Paid | Average Real Rate | Average Balance | Interest Earned/Paid | Average Real Rate | |
| Total interest-earning assets | 2,043 | 1.3% | 566,661 | 2,417 | 1.7% | 235,157 | 1,346 | 2.3% |
| Debt securities | 80 | 0.1% | 355,218 | 109 | 0.1% | 39,020 | 167 | 1.7% |
| Loans to customers/financial institutions | 1,954 | 2.9% | 204,304 | 2,305 | 4.5% | 194,330 | 1,175 | 2.5% |
| Loans to the BCRA | - | 0.0% | 2 | - | 0.0% | 4 | - | 0.0% |
| Other assets | 9 | 0.5% | 7,137 | 3 | 0.2% | 1,804 | 4 | 0.9% |
| Total non interest-earning assets | - | 0.0% | 991,177 | - | 0.0% | 1,206,447 | - | 0.0% |
| Total Assets | 2,043 | 0.4% | 1,557,838 | 2,417 | 0.6% | 1,441,604 | 1,346 | 0.4% |
| Total interest-bearing liabilities | 147 | 0.1% | 808,041 | 281 | 0.1% | 959,565 | 186 | 0.1% |
| Savings accounts | 19 | 0.0% | 692,951 | 14 | 0.0% | 832,646 | 16 | 0.0% |
| Time deposits and Investment accounts | 57 | 0.2% | 110,728 | 49 | 0.2% | 118,048 | 54 | 0.2% |
| Other liabilities | 71 | 16.4% | 4,362 | 218 | 19.9% | 8,871 | 116 | 5.3% |
| Total non-interest-bearing liabilities | - | 0.0% | 495,165 | - | 0.0% | 489,879 | - | 0.0% |
| Total liabilities and equity | 147 | 0.0% | 1,303,206 | 281 | 0.1% | 1,449,443 | 186 | 0.1% |
| NIM - Foreign currency | 1.2% | 1.5% | 2.0% | |||||
| Spread - Foreign currency | 1.3% | 1.6% | 2.2% | |||||
| 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.
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Net Fee Income
| NET FEE INCOME | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| Net Fee Income | 53,974 | 43,933 | (6.4%) | 15.0% |
| Fee Income | 107,271 | 85,246 | (15.1%) | 6.9% |
| Linked to liabilities | 27,009 | 34,950 | (14.4%) | (33.8%) |
| From credit cards (1) | 56,236 | 31,668 | (17.3%) | 46.9% |
| Linked to loans | 11,836 | 9,442 | (18.8%) | 1.8% |
| From insurance | 3,378 | 3,755 | (2.3%) | (12.1%) |
| From foreign trade and foreign currency transactions | 4,188 | 3,917 | 22.1% | 30.6% |
| Other fee income | 4,426 | 1,514 | (24.2%) | 121.7% |
| Linked to loan commitments | 198 | - | (74.2%) | N/A |
| From guarantees granted | 50 | 25 | 28.0% | 156.0% |
| Linked to securities | 4,376 | 1,489 | (24.7%) | 121.2% |
| Fee expenses | 53,297 | 41,313 | (23.9%) | (1.8%) |
| (1) Includes results from Puntos BBVA royalty program pursuant to IFRS 15 regulation. |
All values are in US Dollars.
Net fee income as of 1Q24 totaled $50.5 billion, falling 6.4% or $3.5 billion QoQ and increasing 15.0% or $6.6 billion YoY.
In 1Q24, fee income totaled $91.1 billion, falling 15.1% QoQ and increasing 6.9% YoY. In spite of a general quarterly decline on all lines, the decrease is mainly explained by fees from credit cards, which falls 17.3%, and fees linked to liabilities, which fell 14.4%.Regarding the former, apart from being impacted by expenses related to the Puntos BBVA loyalty program, it was also affected by a decrease in activity and consumption. Regarding fees linked to liabilities, an increase in fees from account maintenance and bundles did not compensate for the fall in activity.
On the side of fee expenses, these totaled $40.6 billion, falling 23.9% QoQ and 1.8% YoY. Lower expenses are explained by lower activity, plus the contrast with high seasonal fee expenses in 4T23. Additionally, there was a decrease in fees linked to payroll marketing campaigns.
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Net Income from Measurement of Financial Instruments at Fair Value and Foreign Exchange and Gold Gains/Losses
| NET INCOME FROM FINANCIAL INSTRUMENTS AT FAIR VALUE (FV) THROUGH P&L | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| Net Income from financial instruments at FV through P&L | (105,662) | 27,065 | 126.4% | 3.0% |
| Income from government securities | (136,757) | 22,156 | 125.5% | 57.5% |
| Income from private securities | 1,285 | 2,489 | (79.8%) | (89.6%) |
| Interest rate swaps | (4) | 85 | 100.0% | (100.0%) |
| Income from foreign currency forward transactions | 29,678 | 2,440 | (122.8%) | (377.9%) |
| Income from put option long position | (421) | (105) | (45.1%) | (481.9%) |
| Income from corporate bonds | 557 | - | (82.8%) | N/A |
| Other | - | - | N/A | N/A |
All values are in US Dollars.
In 1Q24, net income from financial instruments at fair value (FV) through P&L was $27.9 billion, increasing 126.4% or $133.5 billion QoQ and 3.0% or $805 million YoY.
Quarterly results are mainly explained by an increase in the income from government securities line item, due to the valuation of sovereign bonds at fair value through P&L, in addition to the contrast versus the previous quarter, where a loss due to the valuation of the sovereign Dual Bonds was recorded, product of a strong devaluation of the local currency in December 2023.
| DIFFERENCES IN QUOTED PRICES OF GOLD AND FOREIGN FOREIGN CURRENCY | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| Foreign exchange and gold gains/(losses) (1) | 299,382 | 4,091 | (96.6%) | 150.1% |
| From foreign exchange position | 283,007 | (8,939) | (98.7%) | 139.7% |
| Income from purchase-sale of foreign currency | 16,375 | 13,030 | (59.2%) | (48.7%) |
| Net income from financial instruments at FV through P&L (2) | 29,678 | 2,440 | (122.8%) | (377.9%) |
| Income from foreign currency forward transactions | 29,678 | 2,440 | (122.8%) | (377.9%) |
| Total differences in quoted prices of gold & foreign currency (1) + (2) | 329,060 | 6,531 | (99.0%) | (47.2%) |
All values are in US Dollars.
In 1Q24, the total differences in quoted prices of gold and foreign currency showed profit for $3.4 billion, falling 99.0% or $325.6 billion compared to 4Q23.
The quarterly decrease in foreign exchange and gold gains is mainly explained by a lower result from income from foreign exchange position, in contrast with the extraordinary results recorded in 4Q23, mainly due to Dual bonds.
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Other Operating Income
| OTHER OPERATING INCOME | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| Operating Income | 32,898 | 21,301 | (13.7%) | 33.3% |
| Rental of safe deposit boxes (1) | 3,096 | 2,652 | (10.7%) | 4.3% |
| Adjustments and interest on miscellaneous receivables (1) | 13,992 | 7,998 | (1.9%) | 71.6% |
| Punitive interest (1) | 1,039 | 856 | (7.6%) | 12.1% |
| Loans recovered | 3,480 | 2,529 | (57.6%) | (41.7%) |
| Fee income from credit and debit cards (1) | 1,798 | 1,848 | 7.3% | 4.4% |
| Fee expenses recovery | 942 | 850 | (24.7%) | (16.6%) |
| Rents | 820 | 952 | 37.3% | 18.3% |
| Sindicated transaction fees | 338 | 389 | (19.2%) | (29.8%) |
| Disaffected provisions | 807 | 313 | (69.9%) | (22.4%) |
| Other Operating Income(2) | 6,586 | 2,914 | (21.4%) | 77.6% |
| (1) Included in the efficiency ratio calculation | ||||
| (2) Includes some of the concepts used in the efficiency ratio calculation |
All values are in US Dollars.
In 1Q24 other operating income totaled $28.4 billion, falling 13.7% or $4.5 billion QoQ, and increasing 33.3% or $7.1 billion YoY. Quarterly decrease is partially explained by a 57.6% fall in the Loans recovered line item, in addition to a 21.4% decline in the other operating income line, the latter due to the recovery generated by the provision of the valuation of bonds used to make dividend payments during 2023, considering the volatility in those bonds’ price*.*
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Operating Expenses
Personnel Benefits and Administrative Expenses
| PERSONNEL BENEFITS & ADMINISTRATIVE EXPENSES | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| Total Personnel Benefits and Adminsitrative Expenses | 178,727 | 178,544 | 8.0% | 8.1% |
| Personnel Benefits (1) | 101,160 | 85,535 | (11.2%) | 5.0% |
| Salaries | 44,406 | 49,930 | 9.1% | (3.0%) |
| Social security withholdings and collections | 17,478 | 14,528 | (9.9%) | 8.4% |
| Personnel compensation and bonuses | 4,056 | 2,032 | (70.7%) | (41.5%) |
| Personnel services | 2,424 | 1,352 | (37.5%) | 12.1% |
| Other | 32,796 | 17,693 | (24.5%) | 29.5% |
| Administrative expenses (1) | 77,567 | 93,009 | 33.1% | 11.0% |
| Travel expenses | 572 | 464 | 15.2% | 42.0% |
| Outsourced administrative expenses | 10,168 | 10,296 | 25.1% | 23.5% |
| Security services | 2,077 | 2,127 | 35.4% | 32.2% |
| Fees to Bank Directors and Supervisory Committee | 199 | 93 | (45.7%) | 16.1% |
| Other fees | 2,093 | 2,525 | 33.8% | 10.9% |
| Insurance | 784 | 737 | (9.3%) | (3.5%) |
| Rent | 7,203 | 13,561 | 110.4% | 11.7% |
| Stationery and supplies | 161 | 94 | (9.3%) | 55.3% |
| Electricity and communications | 3,413 | 3,156 | (1.4%) | 6.7% |
| Advertising | 4,548 | 6,005 | 55.5% | 17.8% |
| Taxes | 21,968 | 18,735 | 9.5% | 28.4% |
| Maintenance costs | 8,511 | 8,188 | (2.8%) | 1.0% |
| Armored transportation services | 8,079 | 7,865 | (7.8%) | (5.3%) |
| Software | (1,542) | 10,582 | n.m | (35.5%) |
| Document distribution | 2,538 | 2,684 | 91.8% | 81.3% |
| Commercial reports | 1,433 | 2,939 | 33.1% | (35.1%) |
| Other administrative expenses | 5,362 | 2,958 | (19.0%) | 46.8% |
| Headcount* | ||||
| BBVA (Bank) | 5,918 | 5,863 | 58 | 113 |
| Subsidiaries (2) | 91 | 94 | 1 | (2) |
| Total employees* | 6,009 | 5,957 | 59 | 111 |
| In branches** | 3,795 | 1,919 | (61) | 1,815 |
| At Main office | 2,214 | 4,038 | 31 | (1,793) |
| Total branches*** | 243 | 243 | (1) | (1) |
| Own | 112 | 113 | (1) | (2) |
| Rented | 131 | 130 | - | 1 |
| - | ||||
| Efficiency Ratio | ||||
| Efficiency ratio | 46.4% | 62.4% | (3,602)bps | (665)bps |
| Accumulated Efficiency Ratio | 58.6% | 62.4% | (522)bps | (536)bps |
| (1) Concept included in the efficiency ratio calculation | ||||
| (2) Includes BBVA Asset Management, PSA & VWFS. Employees included in Main Office. | ||||
| *Total effective employees, net of temporary contract employees. Expatriates excluded. | ||||
| **Branch employees + Business Center managers | ||||
| ***Excludes administrative branches |
All values are in US Dollars.
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| --- |
During 1Q24, personnel benefits and administrative expenses totaled $193.1 billion, increasing 8.0% or $14.3 billion compared to 4Q23, and increasing 8.1% or $14.5 billion compared to 1Q23 in real terms.
Personnel benefits decreased 11.2% QoQ, and increased 5.0% YoY. The quarterly change is mainly explained by the contrast with the inflation adjustment of vacation stock provisions and variable compensations recorded in 4Q23, plus wage negotiations with the Unions that matched inflation during the first quarter of 2024.
As of 1Q24, administrative expenses grew 33.1% QoQ, and 11.0% YoY. This is maily explained by (i) outsourced administrative expenses, (ii) rent, (iii) software services, (iv) advertising and (v) document distribution expenses. The first three were related to an increase in the amount and price in foreign currency of services contracted with the Parent company.
The quarterly efficiency ratio as of 1Q24 was 65.4%, above the 46.4% reported in 4Q23, and the 62.4% reported in 1Q23. The quarterly increase is explained by an increase in the numerator (expenses) while the denominator (income considering monetary position results) decreased, especially due to lower interest income and the impact of inflation on the monetary position.
The accumulated efficiency ratio as of 1Q24 was 65.4%, above the 58.6% reported in 4Q23, and the 62.4% reported in 1Q23. The deterioration in this ratio is due to an increase in expenses, but especially due to the significant increase in the net monetary position results due to high inflation.
Other Operating Expenses
| OTHER OPERATING EXPENSES | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| Other Operating Expenses | 130,761 | 78,704 | (18.7%) | 35.0% |
| Turnover tax | 91,614 | 60,660 | (33.8%) | (0.1%) |
| Initial loss of loans below market rate | 7,803 | 3,867 | (60.4%) | (20.0%) |
| Contribution to the Deposit Guarantee Fund (SEDESA) | 1,939 | 2,272 | (15.2%) | (27.6%) |
| Interest on liabilities from financial lease | 726 | 666 | 1.8% | 11.0% |
| Other allowances | 17,745 | 6,062 | 94.8% | 470.3% |
| Loss for sale or depreciation of investment property and other non financial assets | 361 | - | (100.0%) | N/A |
| Claims | 916 | 1,068 | (44.2%) | (52.2%) |
| Other operating expenses | 9,657 | 4,109 | (47.3%) | 23.8% |
All values are in US Dollars.
In 1Q24, other operating expenses totaled $86.2 billion, decreasing 18.7% or $24.5 billion QoQ, and increasing 35.0% or $27.6 billion YoY.
The key factor explaining the quarterly fall is in the turnover tax line item and in other operating expenses. Turnover tax decreased 33.8% due to a lower monetary policy rate and lower activity.
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Income from Associates
This line reflects the results from non-consolidated associate companies. During 1Q24, a loss of $2.9 billion 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 three months of 2024 recorded a loss of $23.9 billion, matching the figures of the quarter. The three month accumulated effective tax rate in 2024 was 41%^[3]^^.^
Accumulated income tax during the first three months of 2023 recorded a loss of only $26.7 billion, implying an effective tax rate of 31%.
^3^ 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 AND OTHER FINANCING | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| To the public sector | 220 | 11 | (70.5%) | 490.9% |
| To the financial sector | 24,915 | 20,919 | (28.4%) | (14.8%) |
| Non-financial private sector and residents abroad | 3,039,018 | 3,395,087 | (12.7%) | (21.9%) |
| Non-financial private sector and residents abroad - AR | 2,732,295 | 3,206,164 | (16.2%) | (28.6%) |
| Overdrafts | 267,617 | 417,498 | 20.9% | (22.5%) |
| Discounted instruments | 702,771 | 558,996 | (26.8%) | (8.0%) |
| Mortgage loans | 120,395 | 169,578 | 4.4% | (25.9%) |
| Pledge loans | 67,222 | 105,273 | (36.9%) | (59.7%) |
| Consumer loans | 230,192 | 356,291 | (13.1%) | (43.9%) |
| Credit cards | 1,033,533 | 1,214,818 | (18.2%) | (30.4%) |
| Receivables from financial leases | 19,118 | 27,156 | (29.4%) | (50.3%) |
| Other loans | 291,447 | 356,554 | (23.0%) | (37.0%) |
| Non-financial private sector and residents abroad - Foreign Currency | 306,723 | 188,923 | 18.4% | 92.3% |
| Overdrafts | 19 | 30 | (52.6%) | (70.0%) |
| Discounted instruments | 4,236 | 3,104 | (78.7%) | (70.9%) |
| Credit cards | 31,849 | 29,786 | (7.1%) | (0.7%) |
| Receivables from financial leases | 168 | 352 | (44.0%) | (73.3%) |
| Loans for the prefinancing and financing of exports | 232,286 | 126,675 | 26.0% | 131.1% |
| Other loans | 38,165 | 28,976 | 4.9% | 38.2% |
| % of total loans to Private sector in AR | 89.9% | 94.4% | (360)bps | (813)bps |
| % of total loans to Private sector in Foreign Currency | 10.1% | 5.6% | 360 bps | 813 bps |
| % of mortgage loans with UVA adjustments / Total mortgage loans (1) | 53.5% | 56.2% | (121)bps | (397)bps |
| % of pledge loans with UVA adjustments / Total pledge loans (1) | 1.3% | 1.7% | 77 bps | 41 bps |
| % of consumer loans with UVA adjustments / Total consumer loans (1) | 0.1% | 0.4% | (3)bps | (39)bps |
| % of loans with UVA adjustments / Total loans and other financing(1) | 0.0% | 0.1% | 0 bps | (8)bps |
| Total loans and other financing | 3,064,153 | 3,416,017 | (12.8%) | (21.8%) |
| Allowances | (68,869) | (104,149) | 13.1% | 42.5% |
| Total net loans and other financing | 2,995,284 | 3,311,868 | (12.8%) | (21.2%) |
| (1) Excludes effect of accrued interests adjustments. |
All values are in US Dollars.
| LOANS AND OTHER FINANCING TO NON-FINANCIAL PRIVATE SECTOR AND RESIDENTS ABROAD IN FOREIGN CURRENCY | ||||
|---|---|---|---|---|
| In millions of | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| FX rate* | 808.48 | 208.99 | 6.1% | 310.3% |
| Non-financial private sector and residents abroad - Foreign Currency () | 250 | 233 | 69.3% | 81.9% |
| *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.
Private sector loans as of 1Q24 totaled $2.7 trillion, decreasing 12.7% or $386.4 billion QoQ, and 21.9% or $742.5 billion YoY.
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Loans to the private sector in pesos fell 16.2% in 1Q24, and 28.6% YoY. During the quarter, the decrease was especially driven by a lower generalized seasonality, but in particular, an 18.2% fall in credit cards, followed by a 26.8% fall in discounted instruments, and a 23.0% fall in other loans (mainly due to floorplanning). The decrease was partially offset by a 20.9% increase in overdrafts, mostly due to their short duration*.*
Loans to the private sector denominated in foreign currency increased 18.4% QoQ and 92.3% YoY. Quarterly increase is mainly explained by a 26.0% growth in financing and prefinancing of exports. Loans to the private sector in foreign currency measured in U.S. dollars increased 69.3% QoQ and 81.9% YoY. The depreciation of the argentine peso versus the U.S. dollar was 5.7% QoQ and 75.6% YoY^[4]^.
In 1Q24, total loans and other financing totaled $2.7 trillion, declining 12.8% QoQ and 21.8% compared to 1Q23.
| LOANS AND OTHER FINANCING | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| Non-financial private sector and residents abroad - Retail | 1,483,191 | 1,875,746 | (16.2%) | (33.7%) |
| Mortgage loans | 120,395 | 169,578 | 4.4% | (25.9%) |
| Pledge loans | 67,222 | 105,273 | (36.9%) | (59.7%) |
| Consumer loans | 230,192 | 356,291 | (13.1%) | (43.9%) |
| Credit cards | 1,065,382 | 1,244,604 | (17.9%) | (29.7%) |
| Non-financial private sector and residents abroad - Commercial | 1,555,827 | 1,519,341 | (9.4%) | (7.2%) |
| Overdrafts | 267,636 | 417,528 | 20.9% | (22.5%) |
| Discounted instruments | 707,007 | 562,100 | (27.1%) | (8.4%) |
| Receivables from financial leases | 19,286 | 27,508 | (29.5%) | (50.6%) |
| Loans for the prefinancing and financing of exports | 232,286 | 126,675 | 26.0% | 131.1% |
| Other loans | 329,612 | 385,530 | (19.7%) | (31.4%) |
| % of total loans to Retail sector | 48.8% | 55.2% | (194)bps | (838)bps |
| % of total loans to Commercial sector | 51.2% | 44.8% | 194 bps | 838 bps |
All values are in US Dollars.
In real terms, retail loans (mortgage, pledge, consumer and credit cards) fell 16.2% QoQ and 33.7% YoY in real terms. During the quarter the main decline is in credit cards by 17.9% and pledge loans by 36.9%.
Commercial loans (overdrafts,discounted instruments, receivables from financial leases, loans for the prefinancing and financing of exports, and other loans) decreased 9.4% QoQ and 7.2% YoY, both in real terms. In the quarter, the greatest declines are in discounted instruments by 15.4%, offset by an increase in loans for the prefinancing and financing of exports by 26.0%.
As observed in previous quarters, loan portfolios were impacted by the effect of inflation during the first quarter of 2024, which reached 51.6%. In nominal terms, BBVA Argentina managed to increase the retail, commercial and total loan portfolio by 27.1%, 37.4% and 32.1% respectively during the quarter, in no case surpassing quarterly inflation levels.
^4^ Taking into consideration wholesale U.S. dollar foreignexchange rates on BCRA’s Communication “A” 3500.
| 17 |
| --- | | LOANS AND OTHER FINANCING - NON RESTATED FIGURES | | | | | | --- | --- | --- | --- | --- | | In millions of AR | | | ∆ % | | | | 4Q23 | 1Q23 | QoQ | YoY | | Non-financial private sector and residents abroad - Retail | 978,218 | 483,605 | 27.1% | 157.1% | | Non-financial private sector and residents abroad - Commercial | 1,026,124 | 391,718 | 37.4% | 259.8% | | Total loans and other financing (1) | 2,020,919 | 880,719 | 32.1% | 203.2% | | (1) Does not include allowances | | | | |
All values are in US Dollars.
As of 1Q24, the total loans and other financing over deposits ratio was 55.9%, above the 55.5% recorded in 4Q23 and lower than the 56.0% in 1Q23.
| MARKET SHARE - PRIVATE SECTOR LOANS | BBVA ARGENTINA CONSOLIDATED | ||||
|---|---|---|---|---|---|
| In % | ∆ bps | ||||
| 1Q24 | 4Q23 | 1Q23 | QoQ | YoY | |
| Private sector loans - Bank | 9.45% | 9.12% | 8.46% | 33 bps | 99 bps |
| Private sector loans - Consolidated* | 10.08% | 9.85% | 9.33% | 23 bps | 75 bps |
| Based on daily BCRA information. Capital balance as of the last day of each quarter. | |||||
| * Consolidates PSA, VWFS & Rombo | |||||
| LOANS BY ECONOMIC ACTIVITY | BBVA ARGENTINA CONSOLIDATED | ||||
| --- | --- | --- | --- | --- | --- |
| % over total gross loans and other financing | ∆ bps | ||||
| 1Q24 | 4Q23 | 1Q23 | QoQ | YoY | |
| Government services | 0.00% | 0.00% | 0.00% | n.m. | n.m. |
| Non-financial public sector | 0.00% | 0.01% | 0.00% | n.m. | n.m. |
| Financial Sector | 0.67% | 0.81% | 0.61% | (15)bps | 6 bps |
| Agricultural and Livestock | 5.02% | 4.91% | 4.68% | 11 bps | 34 bps |
| Mining products | 5.86% | 7.34% | 2.91% | (148)bps | 295 bps |
| Other manufacturing | 11.13% | 11.62% | 11.22% | (49)bps | (9)bps |
| Electricity, oil,water and sanitary services | 1.01% | 0.54% | 0.61% | 47 bps | 40 bps |
| Wholesale and retail trade | 8.77% | 8.18% | 6.15% | 59 bps | 262 bps |
| Transport | 1.20% | 1.66% | 1.89% | (45)bps | (69)bps |
| Services | 2.42% | 1.85% | 2.47% | 57 bps | (5)bps |
| Others | 17.54% | 15.23% | 16.03% | 231 bps | 151 bps |
| Construction | 0.54% | 0.64% | 0.72% | (10)bps | (18)bps |
| Consumer | 45.83% | 47.22% | 52.70% | (138)bps | (686)bps |
| Total gross loans and other financing | 100% | 100% | 100% |
| 18 |
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Asset Quality
| ASSET QUALITY | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| Commercial non-performing portfolio (1) | 4,337 | 5,298 | (30.1%) | (42.8%) |
| Total commercial portfolio | 1,372,303 | 1,327,758 | (4.9%) | (1.7%) |
| Commercial non-performing portfolio / Total commercial portfolio | 0.32% | 0.40% | (8)pbs | (17)pbs |
| Retail non-performing portfolio (1) | 37,324 | 41,979 | (15.8%) | (25.2%) |
| Total retail portfolio | 1,867,014 | 2,273,540 | (19.5%) | (33.9%) |
| Retail non-performing portfolio / Total retail portfolio | 2.00% | 1.85% | 9 pbs | 24 pbs |
| Total non-performing portfolio (1) | 41,661 | 47,277 | (17.3%) | (27.1%) |
| Total portfolio | 3,239,317 | 3,601,298 | (13.3%) | (22.0%) |
| Total non-performing portfolio / Total portfolio | 1.29% | 1.31% | (6)pbs | (9)pbs |
| Allowances | 68,869 | 104,149 | (13.1%) | (42.5%) |
| Allowances /Total non-performing portfolio | 165.31% | 220.30% | 846 pbs | (4.653)pbs |
| Quarterly change in Write-offs | 12,422 | 8,233 | (25.4%) | 12.5% |
| Write offs / Total portfolio | 0.38% | 0.23% | (5)pbs | 10 pbs |
| Cost of Risk (CoR) | 3.95% | 3.73% | (19)pbs | 3 pbs |
| (1) Non-performing loans include: all loans to borrowers classified as "Deficient Servicing (Stage 3)", "High Insolvency Risk (Stage 4)", "Irrecoverable" and/or "Irrecoverable for Technical Decision" (Stage 5) according to BCRA debtor classification system |
All values are in US Dollars.
As of 1Q24, asset quality ratio or NPL (total non-performing portfolio / total portfolio) keeps a very good performance at 1.23%, in line with the good behavior of the commercial portfolio.On the retail portfolio, there is a slight increase in NPL portfolio due to credit cards, but with no significant impact on the NPL ratio.
Coverage ratio (allowances / total non-performing portfolio) increased from 165.31% in 4Q23 to 173.77% in 1Q24.
Cost of risk (loan loss allowances / average total loans) reached 3.76% in 1Q24 compared to 3.95% in 4Q23. The increase is explained by a nominal growth in the total portfolio, with a good behavior and lower charges.
| ANALYSIS FOR THE ALLOWANCE OF LOAN LOSSES | BBVA ARGENTINA CONSOLIDATED | ||||
|---|---|---|---|---|---|
| In millions of AR | |||||
| Stage 1 | Stage 2 | Stage 3 | Monetary result generated by allowances | Balance at 03/31/2024 | |
| Other financial assets | 42 | - | 52 | (746) | 1,499 |
| Loans and other financing | 3,487 | 3,033 | 7,767 | (23,287) | 59,869 |
| Other debt securities | 69 | - | - | (53) | 165 |
| Eventual commitments | 2,014 | 506 | 27 | (3,348) | 8,254 |
| Total allowances | 5,612 | 3,539 | 7,846 | (27,434) | 69,787 |
| Note: 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 1Q24 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.
| 19 |
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Public Sector Exposure
| NET PUBLIC DEBT EXPOSURE* | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| Treasury and Government securities | 1,479,822 | 832,259 | (23.8%) | 35.5% |
| Treasury and National Government | 1,479,822 | 832,259 | (23.8%) | 35.5% |
| National Treasury Public Debt in AR | 1,136,417 | 830,436 | (21.1%) | 8.0% |
| National Treasury Public Debt in | 3,058 | 46 | 434.5% | n.m |
| National Treasury Public Debt in AR linked to US dollars | 340,347 | 1,777 | (36.9%) | n.m |
| Loans to theNon-financial Public Sector | 220 | 11 | (70.5%) | 490.9% |
| AR Subtotal | 1,136,417 | 830,436 | (21.1%) | 8.0% |
| Subtotal** | 343,405 | 1,823 | (32.7%) | n.m |
| Total Public Debt Exposure | 1,479,822 | 832,259 | (23.8%) | 35.5% |
| B.C.R.A. Exposure | 2,020,632 | 2,608,597 | 2.9% | (20.3%) |
| Instruments | 197,498 | 2,060,958 | (76.9%) | (97.8%) |
| Leliqs | 91,708 | 2,051,393 | (100.0%) | (100.0%) |
| Notaliqs | 105,790 | 9,565 | (84.3%) | 73.9% |
| Lediv*** | - | - | N/A | N/A |
| Repo / Pases | 1,823,134 | 547,640 | 11.5% | 271.2% |
| % Public sector exposure (Excl. B.C.R.A.) / Total assets | 15.9% | 9.1% | (202)pbs | 482 pbs |
| *Deposits at the Central Bank used to comply with reserve requirements not included. Includes assets used as collateral. | ||||
| **Includes -linked Treasury public debt in AR | ||||
| ***Securities denominated in foreign currency |
All values are in US Dollars.
1Q24 total public sector exposure (excluding BCRA) totaled $1.1 trillion, falling 23.8% or $352.1 billion QoQ, and increasing 35.5% or $295.4 billion YoY. The quarterly decrease is explained by a fall in the position of National Treasury bonds linked to the US dollar (Dual Bond maturity), and National Treasury debt in pesos linked to inflation (through the exercise of put options with the BCRA).
Short-term liquidity is mostly allocated in REPO, which increased 11.5% QoQ in real terms. This is explained by the total cancellation of LELIQ by the Central Bank. Total exposure to the BCRA increased 2.9% in 1Q24, mainly due to REPOs, but also due to the position in Bonos Para la Reconstrucción de una Argentina Libre (BOPREAL) bonds.
Exposure to the public sector (excluding BCRA) represents 13.9% of total assets, below the 15.9% in 4Q23 and above the 9.1% in 1Q23.
| 20 |
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Deposits
| TOTAL DEPOSITS | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| Total deposits | 5,517,980 | 6,096,737 | (13.5%) | (21.7%) |
| Non-financial Public Sector | 51,602 | 46,693 | 213.7% | 246.6% |
| Financial Sector | 3,901 | 3,992 | (20.4%) | (22.2%) |
| Non-financial private sector and residents abroad | 5,462,477 | 6,046,052 | (15.6%) | (23.7%) |
| Non-financial private sector and residents abroad - AR | 3,553,436 | 4,781,917 | (9.3%) | (32.6%) |
| Checking accounts | 1,384,327 | 1,248,328 | (8.0%) | 2.0% |
| Savings accounts | 898,641 | 993,005 | (21.2%) | (28.7%) |
| Time deposits | 969,671 | 1,954,571 | (1.9%) | (51.3%) |
| Investment accounts | 276,144 | 550,595 | (2.3%) | (51.0%) |
| Other | 24,653 | 35,418 | (15.3%) | (41.1%) |
| Non-financial private sector and res. abroad - Foreign Currency | 1,909,041 | 1,264,135 | (27.3%) | 9.7% |
| Checking accounts | 983 | 355 | (72.6%) | (24.2%) |
| Savings accounts | 1,709,489 | 1,136,502 | (27.4%) | 9.2% |
| Time deposits | 182,537 | 115,907 | (26.1%) | 16.4% |
| Other | 16,032 | 11,371 | (32.2%) | (4.4%) |
| % of total portfolio in the private sector in AR | 65.1% | 79.1% | 486 pbs | (918)pbs |
| % of total portfolio in the private sector in Foregin Currency | 34.9% | 20.9% | (486)pbs | 918 pbs |
| % of UVA Time deposits & Investment accounts / Total AR Time deposits & Investment accounts | 1.3% | 2.4% | (128)pbs | (237)pbs |
All values are in US Dollars.
| DEPOSITS TO THE NON-FINANCIAL PRIVATE SECTOR AND RES. ABROAD IN FOREIGN CURRENCY | ||||
|---|---|---|---|---|
| In millions of | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| FX rate* | 808.5 | 209.0 | 6.1% | 310.2% |
| Non-financial private sector and residents abroad - Foreign Currency () | 1557 | 1,560 | 3.9% | 3.7% |
| *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.
As of 1Q24, total deposits reached $4.8 trillion, decreasing 13.5% or $742.5 billion QoQ, and 21.7% or $1.3 trillion YoY.
Private non-financial sector deposits in 1Q24 totaled $4.6 trillion, falling 15.6% QoQ, and 23.7% YoY.
Private non-financial sector deposits in pesos totaled $3.2 trillion, decreasing 9.3% compared to 4Q23, and 32.6% compared to 1Q23. The quarterly change is mainly affected by a 21.2% decline in savings accounts, and an 8.0% fall in checking accounts (especially non-interest bearing checking accounts).
Private non-financial sector deposits in foreign currency expressed in pesos fell 27.3% QoQ and increased 9.7% YoY. This is mainly explained by seasonal factors in 4Q23. Measured in U.S. dollars, these deposits grew 3.8% QoQ, and a 3.7% fall YoY.
| 21 |
| --- | | PRIVATE DEPOSITS | | | | | | --- | --- | --- | --- | --- | | In millions of AR - Inflation adjusted | | | ∆ % | | | | 4Q23 | 1Q23 | QoQ | YoY | | Non-financial private sector and residents abroad | 5,462,477 | 6,046,052 | (15.6%) | (23.7%) | | Sight deposits | 4,034,125 | 3,424,979 | (19.3%) | (5.0%) | | Checking accounts | 1,385,310 | 1,248,683 | (8.1%) | 2.0% | | Savings accounts | 2,608,130 | 2,129,507 | (25.3%) | (8.5%) | | Other | 40,685 | 46,789 | (22.0%) | (32.1%) | | Time deposits | 1,428,352 | 2,621,073 | (5.1%) | (48.3%) | | Time deposits | 1,152,208 | 2,070,478 | (5.7%) | (47.5%) | | Investment accounts | 276,144 | 550,595 | (2.3%) | (51.0%) | | % of sight deposits over total private deposits | 74.1% | 57.0% | (251)pbs | 1.459 pbs | | % of time deposits over total private deposits | 25.9% | 43.0% | 251 pbs | (1.459)pbs |
All values are in US Dollars.
As observed in previous quarters, deposits were impacted by the effect of inflation. In spite of this, in nominal terms, BBVA Argentina managed to increase the sight deposits, time deposits and total deposits by 22.3%, 44.0% and 28.0% respectively.
| PRIVATE DEPOSITS - NON RESTATED FIGURES | ||||
|---|---|---|---|---|
| In millions of AR | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| Sight deposits | 2,660,650 | 883,030 | 22.3% | 268.5% |
| Time deposits | 942,050 | 675,766 | 44.0% | 100.7% |
| Total deposits | 3,602,700 | 1,571,863 | 28.0% | 193.3% |
All values are in US Dollars.
As of 1Q24, the Bank’s transactional deposits (checking accounts and savings accounts) represented 67.5% of total non-financial private deposits, totaling $3.2 trillion, versus 72.4% in 4Q23.
| MARKET SHARE - PRIVATE SECTOR DEPOSITS | BBVA ARGENTINA CONSOLIDATED | ||||
|---|---|---|---|---|---|
| In % | ∆ bps | ||||
| 1Q24 | 4Q23 | 1Q23 | QoQ | YoY | |
| Private sector Deposits - Consolidated* | 7.37% | 6.79% | 6.83% | 58 pbs | 54 pbs |
| Based on daily BCRA information. Capital balance as of the last day of each quarter. | |||||
| * Consolidates PSA, VWFS & Rombo |
Other Sources of Funds
| OTHER SOURCES OF FUNDS | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| Other sources of funds | 2,194,234 | 1,829,420 | (2.8%) | 16.5% |
| Central Bank | 166 | 301 | (36.7%) | (65.1%) |
| Banks and international organizations | 4,051 | 3,072 | (77.8%) | (70.8%) |
| Financing received from local financial institutions | 38,525 | 68,212 | (47.1%) | (70.1%) |
| Corporate bonds | 19,433 | - | (36.7%) | N/A |
| Equity | 2,132,059 | 1,757,835 | (1.6%) | 19.4% |
All values are in US Dollars.
| 22 |
| --- |
In 1Q24, other sources of funds totaled $2.1 trillion, decreasing 2.8% or $62.1 billion QoQ, and increased 16.5% or $302.7 billion YoY.
The variation in the quarter is mostly explained by the 1.6% decrease in equity, followed by a 47.1% fall in financing received from local financial institutions taken by consolidated companies.
Liquid Assets
| TOTAL LIQUID ASSETS | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| Total liquid assets | 5,030,988 | 4,797,801 | (12.7%) | (8.5%) |
| Cash and deposits in banks | 1,732,960 | 1,451,088 | (26.5%) | (12.3%) |
| Debt securities at fair value through P&L | 339,531 | 109,831 | (33.2%) | 106.4% |
| Government securities | 339,531 | 33,058 | (33.2%) | n.m |
| Liquidity bills of B. C. R. A. | - | 76,773 | N/A | (100.0%) |
| Net REPO transactions | 1,823,133 | 547,637 | 11.5% | 271.2% |
| Other debt securities | 1,135,364 | 2,689,245 | (24.4%) | (68.1%) |
| Government securities | 937,867 | 705,071 | (10.3%) | 19.3% |
| Liquidity bills of B. C. R. A. | 91,708 | 1,974,609 | (100.0%) | (100.0%) |
| Internal bills of B.C.R.A. | 105,789 | 9,565 | (84.3%) | 73.9% |
| Liquid assets / Total Deposits | 91.2% | 78.7% | 77 bps | 1,325 bps |
All values are in US Dollars.
In 1Q24, liquid assets were $4.4 trillion, falling 12.7% or $640.4 billion versus 4Q23, and 8.5% or $407.2 billion compared to 1Q23. This was mainly driven by a decrease in cash and deposits in banks, and of public securities (LELIQ).
In the quarter, the liquidity ratio (liquid assets / total deposits) reached 91.9%. Liquidity ratio in local and foreign currency reached 91.1% and 93.7% respectively.
| 23 |
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Solvency
| MINIMUM CAPITAL REQUIREMENT | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| Minimum capital requirement | 510,426 | 473,407 | (15.8%) | (9.2%) |
| Credit risk | 336,740 | 335,078 | (14.7%) | (14.2%) |
| Market risk | 9,913 | 5,554 | (79.7%) | (63.8%) |
| Operational risk | 137,230 | 132,775 | 2.3% | 5.8% |
| Integrated Capital - RPC (1)* | 1,942,276 | 1,616,560 | (3.5%) | 15.9% |
| Ordinary Capital Level 1 ( COn1) | 2,087,252 | 1,764,899 | (0.7%) | 17.4% |
| Deductible items COn1 | (144,976) | (172,446) | (36.3%) | (14.6%) |
| Additional Capital Level 2 (COn2) | - | 24,106 | N/A | (100.0%) |
| Excess Capital | ||||
| Integration excess | 1,431,851 | 1,143,152 | 0.9% | 26.3% |
| Excess as % of minimum capital requirement | 280.5% | 241.5% | 5,550 bps | 9,455 bps |
| Risk-weighted assets (RWA, according to B.C.R.A. regulation) (2) | 5,925,939 | 5,795,597 | (11.1%) | (9.1%) |
| Regulatory Capital Ratio (1)/(2) | 32.8% | 27.9% | 280 pbs | 768 pbs |
| TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) | 32.8% | 27.5% | 280 pbs | 810 pbs |
| * RPC includes 100% of quarterly results |
All values are in US Dollars.
BBVA Argentina continues to show strong solvency indicators on 1Q24. Capital ratio reached 35.6%, above 4Q23’s 32.8%. Capital excess over regulatory requirement was $1.4 trillion or 336.0%.
Growth in the ratio was mainly driven by a fall in risk weighted assets.
| 24 |
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BBVA Argentina Asset Management S.A.
| MUTUAL FUNDS ASSETS | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| FBA Renta Pesos | 1,872,107 | 1,940,556 | (24.9%) | (27.5%) |
| FBA Renta Fija Plus | 30,872 | 12,160 | (18.2%) | 107.6% |
| FBA Ahorro Pesos | 24,118 | 11,434 | (14.7%) | 80.0% |
| FBA Horizonte | 6,048 | 30,316 | 42.3% | (71.6%) |
| FBA Calificado | 7,389 | 23,598 | 103.0% | (36.4%) |
| FBA Acciones Argentinas | 6,539 | 4,852 | (18.7%) | 9.6% |
| FBA Acciones Latinoamericanas | 3,025 | 3,157 | 4.6% | 0.2% |
| FBA Bonos Argentina | 1,830 | 4,329 | 46.6% | (38.0%) |
| FBA Bonos Globales | 846 | 1,761 | 136.3% | 13.5% |
| FBA Renta Mixta | 735 | 1,466 | 46.9% | (26.3%) |
| FBA Gestión I | 99 | 182 | (29.3%) | (61.5%) |
| FBA Horizonte Plus | 24 | 101 | (33.3%) | (84.2%) |
| FBA Retorno Total I | 20 | 78 | (50.0%) | (87.2%) |
| FBA Renta Publica I | 17 | 43 | (41.2%) | (76.7%) |
| FBA Renta Fija Local | 6 | 12 | (33.3%) | (66.7%) |
| Total assets | 1,953,675 | 2,034,045 | (23.7%) | (26.7%) |
| AMASAU Net Income | 448 | 3,993 | 202.7% | (66.0%) |
All values are in US Dollars.
| MARKET SHARE - MUTUAL FUNDS | BBVA ASSET MANAGEMENT | ||||
|---|---|---|---|---|---|
| In % | ∆ bps | ||||
| 1Q24 | 4Q23 | 1Q23 | QoQ | YoY | |
| Mutual funds | 4.72% | 4.78% | 6.15% | (6)bps | (137)bps |
| Source: Cámara Argentina de Fondos Comunes de Inversión |
| 25 |
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Other Events
Main Relevant Events
| · | Call to the Annual Shareholders’ Meeting. As of<br>March 19, 2024, the Board has decided to call the Annual Ordinary and Extraordinary General Shareholders' Meeting for April 26, 2024.<br>For further information click here, |
|---|
· 20-F Annual Report. As of April 17, 2024, has filed with the U.S. Securities and Exchange Commission the Annual Report on Form 20-F as of and for the year ended December 31st 2023. For more information click here.
| · | Dividend distrubution proposal. As of April 23, 2024,<br>the Board of Directors has resolved to propose, to the Annual General Ordinary and Extraordinary Shareholders Meeting to be held on April<br>26th 2024: the partial write-off of the optional reserve for future distribution of results in the sum - expressed in homogeneous currency<br>as of December 31, 2023 - of up to $ 264.2 billion, for the payment of a dividend in cash and/or in kind, or in any combination of both,<br>subject to prior authorization from the BCRA. This sum amounts in homogeneous currency as of today to $400.6 billion based on the consumer<br>price index for the month of March published by the INDEC. For more information click<br>here |
|---|---|
| · | C-level changes. As of April 24, 2024, the Board of Directors,<br>in its meeting following the shareholders' meeting held today, accepted the resignation presented by Mr. Martín Ezequiel Zarich<br>to the position of General Manager, for personal reasons, as of May 1, 2024. Mr. Jorge Alberto Bledel was appointed to replace him ad-referendum<br>of the approval by the Central Bank of the Argentine Republic. In addition, it was resolved to replace Mr. Gustavo O. Fernández,<br>Director of Talent and Culture, for Ms. Vanesa E. Bories. For more information click here. |
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| · | Dividend distribution approval. As of May 7, 2024, the<br>BCRA’s Superintendence of Exchange Institutions has resolved to authorize Banco BBVA Argentina S.A. the distribution of profits<br>in cash and/or in kind for a total amount of $264.2 billion (expressed in homogeneous currency as of December 31, 2023). In accordance<br>with the provisions of Communication “A” 7997 of the BCRA, “nonresident” shareholders may choose to collect dividends<br>– totally or partially – in a single installment as long as these funds are applied directly to the primary subscription of<br>Bonds for the reconstruction of a free Argentina (BOPREAL). Those BOPREAL will be subject to the restrictions on transfer or sale with<br>settlement in foreign currency established by the applicable regulations. For more information click here. |
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| · | Installment 1 and dividend payment schedule. As of May<br>7, 2024, as resolved by the General Ordinary and Extraordinary Shareholders ̓Meeting<br>held on April 26, 2024, the authorization of the BCRA Financial and Exchange Entities Authority obtained on May 3, 2024 and the Board<br>of Directors meeting held on May 6, 2024, approved the payment of a dividend in the amount of $ 264.2 billion expressed in homogeneous<br>currency as of December 31, 2023. That amount in homogeneous currency as of this relevant event is $400.6 billion. Dividends would be<br>paid as follows: Non-resident shareholders may choose to receive their dividends in a single installment for the purposes of being applied<br>to the subscription of Bonds for the Reconstruction of a Free Argentina (BOPREAL). The BCRA has |
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| 26 |
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invited to tender for BOPREAL
- Series 3, the terms and conditions of which are detailed in Communication “B”12795, which is available at www.bcra.gob.ar. The BOPREAL will be subject to the restrictions on transfer or sale with settlement in foreign currency established in Communication “A” 7997 of the BCRA. In case of oversubscription it will be awarded by proration.
If they do not opt to subscribe to BOPREAL, payment to non-resident shareholders will be made in pesos unless they express their intention to receive payment by delivering a National Treasury Bond in pesos adjusted by CER 4.25% due 13 December 2024, Ticker T5X4 (CV code 9200; ISIN ARARGE320DV0) in installments, according to the schedule detailed below.
Payment to resident shareholders will be made in pesos, unless they express their intention to receive Payment in Kind. Resident shareholders are not authorized to subscribe to BOPREAL (Communication “A” 7997).
Payment in BOPREAL will be made on the settlement date of the tender carried out by the BCRA. The Payment in Bonds and the Payment in Pesos will be made in 3 installments, on May 14, June 11 and July 11, according to the payment notice published with each installment.
Holders of American Depositary Shares (ADS) will receive payment through the depositary bank, Bank of New York Mellon, from the date determined by application of the rules governing the jurisdiction where the Bank's ADSs are listed. In that sense, the cut-off and/or payment dates may differ from those reported here.
The dividends that are proposed to be declared are subject to the 7% withholding established in article 97 of the Income Tax Law, text ordered in 2019. From the distribution of dividends, where applicable, the amounts duly paid by the Bank, in its capacity as Substitute Responsible for the Personal Property Tax corresponding to the periods 2022 and 2023 of those Shareholders who have been reached by the referred tax, all in accordance with the terms of the last paragraph of the article incorporated by Law No. 26,452 following article 25 of Law No. 23,966. The withholdings of the Tax for an Inclusive and Solidarity Argentina (COUNTRY) provided by Decree 385/2024 will apply to the Payment in BOPREAL.
In this sense, Installment 1 will be made available and paid for the sum of $133.5 billion (that is, $ 217.9535538036 per share that represents 21,795.35538036% of the share capital of $612.7 million) to its existing shareholders in the Bank's share registry as of May 9, 2024 (Cut-off date). For more information click here.
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SMEs Productive investment financingcredit lines – March 2024
The BCRA established a financing line for productive investments of MSMEs (MiPyMEs, as per its Spanish acronym) aimed at financing CAPEX and/or the construction of the facilities needed for the production and/or marketing of goods and/or services, financing working capital and discounting deferred checks and other instruments, and other special eligible facilities allowed by applicable laws.
The facilities should be granted as part of the 2021/2022, 2022, 2022/2023, 2023, 2023/2024 and MiPyME Mínimo Quotas, pursuant to the following conditions:
| Account | 2022/2023 Quota | 2023 Quota | 2023/2024 Quota | MiPyME Mínimo Quota |
|---|---|---|---|---|
| Applicable law | “B” 12413 – “A” 7612 | “B” 12544 – “A” 7720 | "B" 12667 - “A” 7848 | “A” 7983 |
| Amount to be allocated | At least, the equivalent to 7.5% of the monthly average of daily balances of non-financial private sector deposits in pesos of the previous month at the beginning of the period. | |||
| Calculations of applications | 1.10.2022 - 31.03.2023 | 1.04.2023 - 30.09.2023 | 1.10.2023 - 31.03.2024 | As of 1.04.2024 |
| Maximum interest rate | Capped at an annual nominal fixed rate of 64.50% for investment projects, and at an annual nominal fixed rate of 75.50% for other purposes. | Capped at an annual nominal fixed rate of 74.50% for investment projects, and at an annual nominal fixed rate of 86.50% for other purposes. | Capped at an annual nominal fixed rate of 97% for investment projects, and at an annual nominal fixed rate of 109% for other purposes. | The interest rate that is freely arranged between parts. |
| Currency | Pesos | |||
| Minimum term | At the time of disbursement, the credit facilities shall have an average term of at least 24 months, but the total term shall not be of less than 36 months. No minimum term will apply to credit facilities aimed at financing working capital and discounting deferred checks and other instruments. |
As of March 31, 2024, the total amount disbursed by the Entity meets the BCRA requirement. Disbursements are reported below:
| Quota | Minimum amount to be allocated (1) | Simple Average of Daily balances (1) | Disbursed amount (1) |
|---|---|---|---|
| 2021/2022 Quota | 32,447,048 | 43,434,402 | 62,449,414 |
| 2022 Quota | 42,867,291 | 63,022,460 | 98,200,990 |
| 2022/2023 Quota | 58,558,806 | 86,880,132 | 127,355,598 |
| 2023 Quota | 84,764,223 | 148,263,325 | 234,048,314 |
| 2023/2024 Quota | 135,740,381 | 129,484,282 | 220,930,680 |
| MiPyME Mínimo Quota | (*) | (*) | (*) |
(*)As of the date of these financial statements, the term reported by Communication “B” 12413 has not expired.
(1) Numbers are expressed in nominal terms.
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Main Regulatory Changes
Cease of REPO transactions (Communication “A”7977, 03.11. 2024). As of March 18, REPOs with the BCRA by Investment Funds are no longer available.
De-regulation of time deposit rates (Communication“A” 7978, 03.11.2024). As of March 12, 2024, the BCRA stated that rates on time deposits will be freely set.
Changes in Monetary Policy Rate (Press release,03.11.2024). As of March 12, 2024, the monetary policy rate is 80% APR (previously 100% APR).
MiPyME Mínimo Quota (Communication “A”7983 – 03.21.2024). As of April 1, 2024, the MiPyME Minimo quota will be applicable, a simplified incentive scheme to encourage credit assistance based on reserve requirement reduction, which replaces the LIP quota. Financial institutions will only be benefited from reserve requirement reductions related to SME’s credits with the condition that the average balance of these financings is at least 7.5% of its deposits to the private non-financial sector in pesos, and that at least 30% of the amount is used in investment projects of at least 24 months of average duration. Applicable rates will be freely set between parties. Additionally, there is a new incentive to encourage long term loans. Financing to investment projects of SME’s that are granted for at least 36 months of average duration will enable the financial institution to reduce an additional 40% of the credit amount from its reserve requirement.
Dividend distribution (Communication “A”7984, 03.22.2024). Up to December 31, 2024, financial institutions with the proper BCRA authorization, will be able to distribute dividends in 6 equal, monthly and consecutive installments for up to 60% of the amount corresponding pursuant to “Dividend distribution” regulation. The calculation and payments must be in uniform currency of the date of the Shareholders’ Meeting and the day of each payment. For non-resident shareholders, total or partial payment is available in one installment through BOPREAL: (i) They can only be transferred abroad or sold in foreign currency in thirds, (ii) can be applied freely and totally to other transactions, (iii) excluded from the foreign currency monetary position (iv) BOPREAL can be subscribed for the amount of dividends pending to non-resident shareholders (up to the amount agreed by the Shareholders’ meeting), (v) BOPREAL can be subscribed by non-resident shareholders for dividends paid in pesos and not transferred abroad (up to the amount of dividends paid as of September 1, 2019 determined by the Shareholders’ meeting and adjusted by the consumer price index as of the day of subscription).
Changes in Monetary Policy Rate (Press release,04.11.2024). As of April 12, 2024, the monetary policy rate is 70% APR (previously 80% APR).
Minimum reserve requirements (Communication “A”7988, 04.11.2024). The BCRA modifies minimum reserve requirement regulation. As of April 15, rates applicable to sight deposits in pesos in money market funds, will be 10% (previously 0%).
Changes in Monetary Policy Rate (Press release,04.25.2024). As of April 25, 2024, the monetary policy rate is 60% APR (previously 70% APR).
Changes in Monetary Policy Rate (Press release,05.02.2024). As of May 2, 2024, the monetary policy rate is 50% APR (previously 60% APR).
Dividend distribution. Global net position in foreigncurrency. (Communication “A” 7997, 04.30.2024). Financial institutions that have decided to distribute
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dividends pursuant to Communication “A” 7984, will be allowed to do it in 3 equal, monthly and consecutive installments for up to the amount that corresponds according to said communication. Financial institutions must give the option to each non-resident shareholder of receiving their dividends- totally or partially – in only one installment in cash as long as those funds are directly applied to the primary subscription of BOPREAL according to the current FX regulations. The eventual position in foreign currency that financial institutions might have for the subscription of BOPREAL, until the payment to shareholders, will be excluded from its limit of foreign exchange position.
Minimum reserve requirement (Communication “A”8000, 05.03.2024). The BCRA decided to increase the following reserve requirement coefficients as of May 15, 2024. Collateralized loans in pesos: up to 29 days of residual term: 15%, and, as of 30 days of residual term: 10%. Sight deposits in pesos in position of money market funds: 15%.
PAIS tax. (Decree 385/2024 – 05.06.2024 +AFIP 5509/2024, 05.09.2024). It is extended to a 17.5% rate for (i) the acquisition of bills and foreign Exchange currency for dividend distribution and (ii) BOPREAL subscription for dividend distributions.
Changes in Monetary Policy Rate (Press release,05.02.2024). As of May 2, 2024, the monetary policy rate is 40% APR (previously 50% APR).
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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. inflation adjustments, 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. inflation adjustments, 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).
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).
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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) / 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. 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. 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 SHEET | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| Assets | ||||
| Cash and deposits in banks | 1,732,960 | 1,451,088 | (26.5%) | (12.3%) |
| Cash | 1,102,701 | 465,664 | (34.5%) | 55.1% |
| Financial institutions and correspondents | 630,259 | 984,849 | (12.7%) | (44.1%) |
| BCRA | 545,617 | 948,363 | (14.7%) | (50.9%) |
| Other local and foreign financial institutions | 84,642 | 36,486 | 0.3% | 132.7% |
| Other | - | 575 | N/A | (100.0%) |
| Debt securities at fair value through profit or loss | 342,791 | 109,831 | (33.3%) | 108.1% |
| Derivatives | 15,165 | 4,367 | (20.6%) | 175.6% |
| Repo transactions | 1,823,133 | 547,637 | 11.5% | 271.2% |
| Other financial assets | 138,148 | 150,717 | (25.8%) | (32.0%) |
| Loans and other financing | 2,995,284 | 3,311,868 | (12.8%) | (21.2%) |
| Non-financial public sector | 220 | 11 | (70.5%) | 490.9% |
| B.C.R.A | - | - | N/A | N/A |
| Other financial institutions | 23,428 | 20,481 | (27.2%) | (16.7%) |
| Non-financial private sector and residents abroad | 2,971,636 | 3,291,376 | (12.7%) | (21.2%) |
| Other debt securities | 1,148,948 | 2,707,850 | (23.8%) | (67.7%) |
| Financial assets pledged as collateral | 396,695 | 206,053 | (32.9%) | 29.2% |
| Current income tax assets | 243 | 297 | (16.0%) | (31.3%) |
| Investments in equity instruments | 7,901 | 4,711 | (1.7%) | 64.9% |
| Investments in subsidiaries and associates | 18,750 | 17,792 | (15.4%) | (10.8%) |
| Property and equipment | 452,163 | 450,531 | 3.0% | 3.4% |
| Intangible assets | 50,244 | 45,166 | 1.3% | 12.7% |
| Deferred income tax assets | 4,315 | 5,966 | n.m | 410.3% |
| Other non-financial assets | 158,058 | 137,874 | (17.2%) | (5.1%) |
| Non-current assets held for sale | 1,292 | 1,253 | - | 3.1% |
| Total Assets | 9,286,090 | 9,153,001 | (12.7%) | (11.5%) |
| Liabilities | ||||
| Deposits | 5,517,980 | 6,096,737 | (13.5%) | (21.7%) |
| Non-financial public sector | 51,602 | 46,693 | 213.7% | 246.6% |
| Financial sector | 3,901 | 3,992 | (20.4%) | (22.2%) |
| Non-financial private sector and residents abroad | 5,462,477 | 6,046,052 | (15.6%) | (23.7%) |
| Liabilities at fair value through profit or loss | 15,663 | - | (48.8%) | N/A |
| Derivatives | 3,253 | 2,020 | 22.9% | 97.9% |
| Other financial liabilities | 679,657 | 514,740 | (20.4%) | 5.0% |
| Financing received from the B.C.R.A. and other financial institutions | 42,742 | 71,585 | (50.0%) | (70.1%) |
| Corporate bonds issued | 19,433 | - | (36.7%) | N/A |
| Current income tax liabilities | 291,367 | 61,954 | (34.2%) | 209.6% |
| Provisions | 31,422 | 38,414 | 65.7% | 35.5% |
| Deferred income tax liabilities | 35,504 | 21,995 | (100.0%) | (100.0%) |
| Other non-financial liabilities | 489,766 | 562,246 | (23.6%) | (33.5%) |
| Total Liabilities | 7,126,787 | 7,369,691 | (16.1%) | (18.9%) |
| Equity | ||||
| Share Capital | 613 | 613 | - | - |
| Non-capitalized contributions | 6,745 | 6,745 | - | - |
| Capital adjustments | 626,238 | 626,238 | - | - |
| Reserves | 985,773 | 826,100 | - | 19.3% |
| Retained earnings | - | 277,751 | N/A | (10.2%) |
| Other accumulated comprehensive income | 263,209 | (37,904) | (26.0%) | n.m |
| Income for the period | 249,481 | 58,292 | (86.1%) | (40.3%) |
| Equity attributable to owners of the Parent | 2,132,059 | 1,757,835 | (1.6%) | 19.4% |
| Equity attributable to non-controlling interests | 27,244 | 25,475 | (3.0%) | 3.7% |
| Total Equity | 2,159,303 | 1,783,310 | (1.6%) | 19.2% |
| Total Liabilities and Equity | 9,286,090 | 9,153,001 | (12.7%) | (11.5%) |
All values are in US Dollars.
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Balance Sheet – Five quarters
| BALANCE SHEET | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ||||
| 4Q23 | 3Q23 | 2Q23 | 1Q23 | |
| Assets | ||||
| Cash and deposits in banks | 1,732,960 | 1,111,751 | 1,330,499 | 1,451,088 |
| Cash | 1,102,701 | 586,293 | 442,109 | 465,664 |
| Financial institutions and correspondents | 630,259 | 525,045 | 734,102 | 984,849 |
| B.C.R.A | 545,617 | 482,664 | 705,910 | 948,363 |
| Other local and foreign financial institutions | 84,642 | 42,381 | 28,192 | 36,486 |
| Other | - | 413 | 154,288 | 575 |
| Debt securities at fair value through profit or loss | 342,791 | 249,730 | 251,388 | 109,831 |
| Derivatives | 15,165 | 29,988 | 10,215 | 4,367 |
| Repo transactions | 1,823,133 | 708,331 | 550,653 | 547,637 |
| Other financial assets | 138,148 | 202,272 | 284,137 | 150,717 |
| Loans and other financing | 2,995,284 | 3,143,792 | 3,296,725 | 3,311,868 |
| Non-financial public sector | 220 | 130 | 12 | 11 |
| B.C.R.A | - | - | - | - |
| Other financial institutions | 23,428 | 10,529 | 22,188 | 20,481 |
| Non-financial private sector and residents abroad | 2,971,636 | 3,133,133 | 3,274,525 | 3,291,376 |
| Other debt securities | 1,148,948 | 2,565,106 | 3,185,364 | 2,707,850 |
| Financial assets pledged as collateral | 396,695 | 336,633 | 249,190 | 206,053 |
| Current income tax assets | 243 | 284 | 252 | 297 |
| Investments in equity instruments | 7,901 | 6,913 | 7,282 | 4,711 |
| Investments in subsidiaries and associates | 18,750 | 17,373 | 17,333 | 17,792 |
| Property and equipment | 452,163 | 447,132 | 447,289 | 450,531 |
| Intangible assets | 50,244 | 47,979 | 46,188 | 45,166 |
| Deferred income tax assets | 4,315 | 5,280 | 5,878 | 5,966 |
| Other non-financial assets | 158,058 | 148,655 | 134,554 | 137,874 |
| Non-current assets held for sale | 1,292 | 1,253 | 1,253 | 1,253 |
| Total Assets | 9,286,090 | 9,022,472 | 9,818,200 | 9,153,001 |
| Liabilities | ||||
| Deposits | 5,517,980 | 6,028,636 | 6,297,462 | 6,096,737 |
| Non-financial public sector | 51,602 | 48,480 | 34,485 | 46,693 |
| Financial sector | 3,901 | 2,990 | 5,927 | 3,992 |
| Non-financial private sector and residents abroad | 5,462,477 | 5,977,166 | 6,257,050 | 6,046,052 |
| Liabilities at fair value through profit or loss | 15,663 | 202 | - | - |
| Derivatives | 3,253 | 5,403 | 1,479 | 2,020 |
| Other financial liabilities | 679,657 | 488,902 | 872,877 | 514,740 |
| Financing received from the B.C.R.A. and other financial institutions | 42,742 | 54,578 | 86,834 | 71,585 |
| Corporate bonds issued | 19,433 | - | - | - |
| Current income tax liabilities | 291,367 | 50,008 | 85,986 | 61,954 |
| Provisions | 31,422 | 24,862 | 36,738 | 38,414 |
| Deferred income tax liabilities | 35,504 | 64,043 | 44,952 | 21,995 |
| Other non-financial liabilities | 489,766 | 528,758 | 615,126 | 562,246 |
| Total Liabilities | 7,126,787 | 7,245,392 | 8,041,454 | 7,369,691 |
| Equity | ||||
| Share Capital | 613 | 613 | 613 | 613 |
| Non-capitalized contributions | 6,745 | 6,745 | 6,745 | 6,745 |
| Capital adjustments | 626,238 | 626,238 | 626,238 | 626,238 |
| Reserves | 985,773 | 985,773 | 985,773 | 826,100 |
| Retained earnings | - | - | - | 277,751 |
| Other accumulated comprehensive income | 263,209 | (44,105) | (21,529) | (37,904) |
| Income for the period | 249,481 | 174,862 | 152,479 | 58,292 |
| Equity attributable to owners of the Parent | 2,132,059 | 1,750,126 | 1,750,319 | 1,757,835 |
| Equity attributable to non-controlling interests | 27,244 | 26,954 | 26,427 | 25,475 |
| Total Equity | 2,159,303 | 1,777,080 | 1,776,746 | 1,783,310 |
| Total Liabilities and Equity | 9,286,090 | 9,022,472 | 9,818,200 | 9,153,001 |
All values are in US Dollars.
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Balance Sheet – Foreign Currency Exposure
| FOREIGN CURRENCY EXPOSURE | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| Assets | ||||
| Cash and deposits in banks | 1,632,542 | 1,166,708 | (28.2%) | 0.4% |
| Debt securities at fair value through profit or loss | 341,452 | 609 | (36.6%) | n.m |
| Other financial assets | 58,038 | 37,961 | (37.4%) | (4.3%) |
| Loans and other financing | 298,631 | 164,157 | 19.3% | 117.1% |
| Other financial institutions | 6 | 4 | (33.3%) | - |
| Non-financial private sector and residents abroad | 298,622 | 164,153 | 19.3% | 117.1% |
| Other debt securities | 112,306 | 22,946 | (35.8%) | 214.1% |
| Financial assets pledged as collateral | 64,315 | 19,855 | (14.2%) | 178.0% |
| Investments in equity instruments | 655 | 295 | (17.9%) | 82.4% |
| Total foreign currency assets | 2,507,939 | 1,412,531 | (23.9%) | 35.1% |
| Liabilities | ||||
| Deposits | 1,943,560 | 1,295,165 | (20.6%) | 19.1% |
| Non-Financial Public Sector | 33,560 | 30,498 | 361.0% | 407.3% |
| Financial Sector | 958 | 473 | (24.4%) | 53.1% |
| Non-financial private sector and residents abroad | 1,909,042 | 1,264,194 | (27.3%) | 9.7% |
| Other financial liabilities | 121,191 | 94,139 | 0.2% | 29.0% |
| Financing received from the B.C.R.A. and other financial institutions | 4,729 | 5,213 | (74.9%) | (77.2%) |
| Other non financial liabilities | 93,842 | 63,412 | (26.3%) | 9.1% |
| Total foreign currency liabilities | 2,163,322 | 1,457,929 | (19.8%) | 19.0% |
| Foreign Currency Net Position - AR | 344,617 | (45,398) | (49.4%) | 483.8% |
| Foreign Currency Net Position - | 426 | (217) | (52.3%) | 193.5% |
| *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.
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Income Statement
| INCOME STATEMENT | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ∆ % | |||
| 4Q23 | 1Q23 | QoQ | YoY | |
| Interest income | 1,333,722 | 966,560 | (4.3%) | 32.1% |
| Interest expense | (582,106) | (457,720) | 16.0% | (6.8%) |
| Net interest income | 751,616 | 508,840 | 4.8% | 54.8% |
| Fee income | 107,271 | 85,246 | (15.1%) | 6.9% |
| Fee expenses | (53,297) | (41,313) | 23.9% | 1.8% |
| Net fee income | 53,974 | 43,933 | (6.4%) | 15.0% |
| Net income from financial instruments at fair value through P&L | (105,662) | 27,065 | 126.4% | 3.0% |
| Net loss from write-down of assets at amortized cost and fair value through OCI | 44,764 | 149 | 40.6% | n.m |
| Foreign exchange and gold gains | 299,382 | 4,091 | (96.6%) | 150.1% |
| Other operating income | 32,898 | 21,301 | (13.7%) | 33.3% |
| Loan loss allowances | (31,380) | (31,719) | 14.3% | 15.3% |
| Net operating income | 1,045,592 | 573,660 | (10.0%) | 64.0% |
| Personnel benefits | (101,160) | (85,535) | 11.2% | (5.0%) |
| Administrative expenses | (77,567) | (93,009) | (33.1%) | (11.0%) |
| Depreciation and amortization | (11,440) | (10,939) | 10.1% | 6.0% |
| Other operating expenses | (130,761) | (78,704) | 18.7% | (35.0%) |
| Operating expenses | (320,928) | (268,187) | 3.5% | (15.4%) |
| Operating income | 724,664 | 305,473 | (12.9%) | 106.6% |
| Income from associates and joint ventures | 87 | (233) | n.m | n.m |
| Income from net monetary position | (539,015) | (220,293) | (5.8%) | (158.9%) |
| Income before income tax | 185,736 | 84,947 | (68.7%) | (31.6%) |
| Income tax | (112,022) | (26,692) | 78.7% | 10.4% |
| Income for the period | 73,714 | 58,255 | (53.7%) | (41.4%) |
| Owners of the parent | 74,619 | 58,292 | (53.4%) | (40.3%) |
| Non-controlling interests | (905) | (37) | 30.8% | n.m |
| Other comprehensive Income (1) | 308,403 | (2,499) | (122.2%) | n.m |
| Total comprehensive income | 382,117 | 55,756 | (109.0%) | (161.8%) |
| (1) Net of Income Tax. |
All values are in US Dollars.
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Income Statement – 3 month accumulated
| INCOME STATEMENT - 3 MONTH ACCUMULATED | ||
|---|---|---|
| In millions of AR - Inflation adjusted | ||
| 2023 | ∆ % | |
| Interest income | 966,560 | 32.1% |
| Interest expense | (457,720) | (6.8%) |
| Net interest income | 508,840 | 54.8% |
| Fee income | 85,246 | 6.9% |
| Fee expenses | (41,313) | 1.8% |
| Net fee income | 43,933 | 15.0% |
| Net income from financial instruments at fair value through P&L | 27,065 | 3.0% |
| Net loss from write-down of assets at amortized cost and fair value through OCI | 149 | n.m |
| Foreign exchange and gold gains | 4,091 | 150.1% |
| Other operating income | 21,301 | 33.3% |
| Loan loss allowances | (31,719) | 15.3% |
| Net operating income | 573,660 | 64.0% |
| Personnel benefits | (85,535) | (5.0%) |
| Administrative expenses | (93,009) | (11.0%) |
| Depreciation and amortization | (10,939) | 6.0% |
| Other operating expenses | (78,704) | (35.0%) |
| Operating expenses | (268,187) | (15.4%) |
| Operating income | 305,473 | 106.6% |
| Income from associates and joint ventures | (233) | n.m |
| Income from net monetary position | (220,293) | (158.9%) |
| Income before income tax | 84,947 | (31.6%) |
| Income tax | (26,692) | 10.4% |
| Income for the period | 58,255 | (41.4%) |
| Owners of the parent | 58,292 | (40.3%) |
| Non-controlling interests | (37) | n.m |
| Other comprehensive Income (OCI) (1) | (2,499) | n.m |
| Total comprehensive income | 55,756 | (161.8%) |
| (1) Net of Income Tax. |
All values are in US Dollars.
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Income Statement – 5 quarters
| INCOME STATEMENT | ||||
|---|---|---|---|---|
| In millions of AR - Inflation adjusted | ||||
| 4Q23 | 3Q23 | 2Q23 | 1Q23 | |
| Interest income | 1,333,722 | 1,364,045 | 1,163,229 | 966,560 |
| Interest expense | (582,106) | (735,968) | (581,947) | (457,720) |
| Net interest income | 751,616 | 628,077 | 581,282 | 508,840 |
| Fee income | 107,271 | 90,312 | 103,499 | 85,246 |
| Fee expenses | (53,297) | (50,894) | (30,137) | (41,313) |
| Net fee income | 53,974 | 39,418 | 73,362 | 43,933 |
| Net income from financial instruments at fair value through P&L | (105,662) | 18,993 | 23,232 | 27,065 |
| Net loss from write-down of assets at amortized cost and fair value through OCI | 44,764 | 9,455 | 7,176 | 149 |
| Foreign exchange and gold gains | 299,382 | 4,975 | 10,125 | 4,091 |
| Other operating income | 32,898 | 24,761 | 23,001 | 21,301 |
| Loan loss allowances | (31,380) | (17,939) | (34,773) | (31,719) |
| Net operating income | 1,045,592 | 707,740 | 683,405 | 573,660 |
| Personnel benefits | (101,160) | (98,583) | (90,898) | (85,535) |
| Administrative expenses | (77,567) | (110,039) | (97,628) | (93,009) |
| Depreciation and amortization | (11,440) | (10,158) | (10,944) | (10,939) |
| Other operating expenses | (130,761) | (100,112) | (91,166) | (78,704) |
| Operating expenses | (320,928) | (318,892) | (290,636) | (268,187) |
| Operating income | 724,664 | 388,848 | 392,769 | 305,473 |
| Income from associates and joint ventures | 87 | 42 | 1,858 | (233) |
| Income from net monetary position | (539,015) | (353,444) | (242,819) | (220,293) |
| Income before income tax | 185,736 | 35,446 | 151,808 | 84,947 |
| Income tax | (112,022) | (12,470) | (56,670) | (26,692) |
| Income for the period | 73,714 | 22,976 | 95,138 | 58,255 |
| Owners of the parent | 74,619 | 22,383 | 94,187 | 58,292 |
| Non-controlling interests | (905) | 593 | 951 | (37) |
| Other comprehensive Income (OCI)(1) | 308,403 | (22,642) | 16,376 | (2,499) |
| Total comprehensive income | 382,117 | 334 | 111,514 | 55,756 |
| (1) Net of Income Tax. |
All values are in US Dollars.
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Ratios
| QUARTERLY ANNUALIZED RATIOS | BBVA ARGENTINA CONSOLIDATED | ||||
|---|---|---|---|---|---|
| In % | ∆ bps | ||||
| 1Q24 | 4Q23 | 1Q23 | QoQ | YoY | |
| Profitability | |||||
| Efficiency Ratio | 65.4% | 46.4% | 62.4% | 1,901 bps | 300 bps |
| ROA | 1.6% | 3.2% | 2.6% | (163)bps | (100)bps |
| ROE | 6.6% | 15.3% | 13.7% | (866)bps | (711)bps |
| Liquidity | |||||
| Liquid assets / Total Deposits | 91.9% | 91.2% | 78.7% | 73 bps | 1,320 bps |
| Capital | |||||
| Regulatory Capital Ratio | 35.57% | 32.78% | 27.89% | 280 bps | 768 bps |
| TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) | 35.57% | 32.78% | 27.89% | 280 bps | 768 bps |
| Asset Quality | |||||
| Total non-performing portfolio / Total portfolio | 1.23% | 1.29% | 1.31% | (6)bps | (8)bps |
| Allowances /Total non-performing portfolio | 173.77% | 165.31% | 220.30% | 846 bps | (4,653)bps |
| Cost of Risk | 3.76% | 3.95% | 3.73% | (19)bps | 3 bps |
| ACCUMULATED ANNUALIZED RATIOS | BBVA ARGENTINA CONSOLIDATED | ||||
| --- | --- | --- | --- | --- | --- |
| In % | ∆ bps | ||||
| 1Q24 | 4Q23 | 1Q23 | QoQ | YoY | |
| Profitability | |||||
| Efficiency Ratio | 65.4% | 58.6% | 62.4% | 681 bps | 300 bps |
| ROA | 1.6% | 2.7% | 2.6% | (109)bps | (100)bps |
| ROE | 6.6% | 13.0% | 13.7% | (642)bps | (711)bps |
| Liquidity | |||||
| Liquid assets / Total Deposits | 91.9% | 91.2% | 78.7% | 73 bps | 1,320 bps |
| Capital | |||||
| Regulatory Capital Ratio | 35.6% | 32.8% | 27.9% | 280 bps | 768 bps |
| TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) | 35.6% | 32.8% | 27.9% | 280 bps | 768 bps |
| Asset Quality | |||||
| Total non-performing portfolio / Total portfolio | 1.23% | 1.29% | 1.31% | (6)bps | (8)bps |
| Allowances /Total non-performing portfolio | 173.77% | 165.31% | 220.30% | 846 bps | (4,653)bps |
| Cost of Risk | 3.76% | 3.68% | 3.73% | 8 bps | 3 bps |
| 39 |
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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
investorelations-arg@bbva.com
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: | May 22, 2024 | By: | /s/ Carmen Morillo Arroyo | |
| Name: | Carmen Morillo Arroyo | |||
| Title: | Chief Financial Officer |