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
 

 

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

 

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

 

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

 

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

 

 

Item

 
   
1. Banco BBVA Argentina S.A. reports consolidated first quarter earnings for fiscal year 2024.
   
   

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

Banco BBVA Argentina S.A. announces First Quarter 2024 results

Buenos Aires, 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 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 of 2023 (4Q23), and 41.4% lower than the $58.3 billion reported on the first quarter of 2023 (1Q23).
·In 1Q24, BBVA Argentina posted an inflation adjusted average return on assets (ROAA) of 1.6% and an inflation adjusted average return on equity (ROAE) of 6.6%.
·Operating income in 1Q24 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.
·In terms of activity, total consolidated financing to the private sector in 1Q24 totaled $2.7 trillion, falling 12.7% in real terms compared to 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 discounted instruments by 27.1% and in other loans by 19.7%. This was offset by an increase in prefinancing and financing of exports by 26.0%. BBVA’s consolidated market share of private sector loans reached 10.08% as of 1Q24.
·Total consolidated deposits in 1Q24 totaled $4.8 trillion, decreasing 13.5% in real terms during the quarter, and 21.7% YoY. Quarterly decrease was mainly explained by a fall by 25.3% and 8.1% in savings and checking accounts respectively. The Bank’s consolidated market share of private deposits reached 7.37% as of 1Q24.
·As of 1Q24, the non-performing loan ratio (NPL) reached 1.23%, with a 173.77% coverage ratio.
·The accumulated efficiency ratio in 1Q24 was 65.4%, deteriorating compared to 4Q23’s 58.6%, and to 1Q23’s 62.4%.
·As of 1Q24, BBVA Argentina reached a regulatory capital ratio of 35.6%, entailing a $1.4 trillion or 336.0% excess over minimum regulatory requirement. Tier I ratio was 35.6%.
·Total liquid assets represented 91.9% of the Bank’s total deposits as of 1Q24.

Message from the CFO

“The new Milei government substantially modified the economic policy framework, and focused its efforts on a strong fiscal and monetary adjustment to reduce inflation. The reduction of fiscal deficit in the first months of the year, the relative currency stability observed after the significant depreciation of the Argentinean peso in December 2023 in a context of accumulation of international reserves, and the contraction of 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 is likely, according to BBVA Research, that these factors could set the bases for an inflation slowdown in the following months. This would eventually be complemented by additional measures in the context of the release of a more integral stabilization program. BBVA Research estimates annual inflation will end close to 155% (re-estimated from 175%, and versus 211% by the end of 2023), and that GDP will drop around 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 system grew 171% YoY, while BBVA Argentina increased its private loan portfolio in pesos by 193%[1]. Neither the System, nor Bank’s YoY loan growth exceeded that of inflation (which reached 287.9% YoY as of March 2024). Nonetheless, BBVA Argentina´s consolidated 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 both cases. 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 Board named Jorge Bledel as the company CEO (ad-referendum of the approval of the BCRA). Jorge Bledel has worked for more than 20 years in the BBVA Group, where he has taken different roles and responsible positions. In Argentina, he was responsible for the innovation and business models, as well as business development. Up to now, he had been the head at Openpay – a startup acquired in 2017 by BBVA and is present 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 sustainable business growth.

As of this date, the Bank has announced the payment of 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 first quarter of 2024, operating income was the product of lower operating expenses, although denoting a decline in operating income, by contrast with the results in 4Q23, mostly generated by extraordinary results due to the devaluation of the peso versus the U.S. dollar in December 2023, and the inherent seasonality of the first quarter of the year.

On the other hand, as of March 2024, BBVA Argentina reached a private deposit NPL of 1.23%, way below the 2.00% ratio of the System, last available indicator as of February 2024. Concerning liquidity and solvency indicators, the Bank ends the quarter with 91.9% and 35.6% respectively, levels which undoubtedly allow to address business growth in the case of an economic recovery.

On digitalization, our service offering has evolved in such way that by the end of March 2024, mobile monetary transactions increased 71% compared to the same period a year back. In the quarter, 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 responsibility with society, inherent to the Bank’s business model, which bolsters inclusion, financial education and supports scientific research and culture. The Bank works with the highest integrity, long-term vision and best practices, and is present through the BBVA Group in the main sustainability indexes.

Lastly, the Bank actively monitors its business, financial conditions and operating results, in the aim of keeping a competitive position to face contextual challenges in a decisive year for the Argentine 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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Carmen Morillo 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)

Web Phone: click here

Conference code: BBVA

Webcast & Replay: click here

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Safe Harbor Statement

This press release contains certain forward-looking statements that reflect the current views and/or expectations of Banco BBVA Argentina and its management with respect to its performance, business and future events. We use words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “seek,” “future,” “should” and other similar expressions to identify forward-looking statements, but they are not the only way we identify such statements. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this release. Actual results, performance or events may differ 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 rates and the cost of deposits, which may, among other things, affect margins, (iv) unanticipated increases in financing or other costs or the inability to obtain additional debt or equity financing on attractive terms, which may limit our ability to fund existing operations and to finance new activities, (v) changes in government regulation, including tax and banking regulations, (vi) changes in the policies of Argentine 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) changes in consumer spending and saving habits, (xiii) the ability to implement our business strategy and (xiv) fluctuations in the exchange rate of the Peso. The matters discussed herein may also be affected by risks and uncertainties described from time to time in Banco BBVA Argentina’s filings with the U.S. Securities and Exchange Commission (SEC) and Comisión Nacional de Valores (CNV). Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as the date of this document. Banco BBVA Argentina is under no obligation and expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Information

This earnings release has been prepared in accordance with the accounting framework established by the Central Bank of Argentina (“BCRA”), based on International Financial Reporting Standards (“I.F.R.S.”) and the resolutions adopted by the International Accounting Standards Board (“I.A.S.B”) and by the Federación Argentina de Consejos Profesionales de Ciencias Económicas (“F.A.C.P.E.”), and with the the exclusion of the application of the IFRS 9 impairment model for non-financial public sector debt instruments.

The information in this press release contains unaudited financial information that consolidates, line item by line item, all of the banking activities of BBVA Argentina, including: BBVA Asset Management Argentina S.A., Consolidar AFJP-undergoing liquidation proceeding, PSA Finance Argentina Compañía Financiera S.A. (“PSA”) and Volkswagen Financial Services Compañía Financiera S.A (“VWFS”).

BBVA Seguros Argentina S.A. is disclosed on a consolidated basis recorded as Investments in associates (reported under the proportional consolidation method), and the corresponding results are reported as “Income from associates”), same as Rombo Compañía Financiera S.A. (“Rombo”), Play Digital S.A. (“MODO”), Openpay Argentina S.A. and Interbanking S.A.

Financial statements of subsidiaries have been elaborated 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, excluding debt instruments from the non-financial public sector.

The information published by the BBVA Group for Argentina is prepared according to IFRS, without considering the temporary exceptions established by BCRA.

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Quarterly Results

INCOME STATEMENT BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
Net Interest Income          787,768          751,616          508,840              4.8%            54.8%
Net Fee Income            50,504            53,974            43,933             (6.4%)            15.0%
Net income from measurement of financial instruments at fair value through P&L            27,871        (105,662)            27,065          126.4%              3.0%
Net income from write-down of assets at amortized cost and at fair value through OCI            62,924            44,764                 149            40.6%  n.m 
Foreign exchange and gold gains            10,230          299,382              4,091           (96.6%)          150.1%
Other operating income            28,384            32,898            21,301           (13.7%)            33.3%
Loan loss allowances          (26,880)          (31,380)          (31,719)            14.3%            15.3%
Net operating income          940,801       1,045,592          573,660           (10.0%)            64.0%
Personnel benefits          (89,808)        (101,160)          (85,535)            11.2%             (5.0%)
Adminsitrative expenses        (103,265)          (77,567)          (93,009)           (33.1%)           (11.0%)
Depreciation and amortization          (10,280)          (11,440)          (10,939)            10.1%              6.0%
Other operating expenses        (106,264)        (130,761)          (78,704)            18.7%           (35.0%)
Operarting expenses        (309,617)        (320,928)        (268,187)              3.5%           (15.4%)
Operating income          631,184          724,664          305,473           (12.9%)          106.6%
Income from associates            (2,885)                   87               (233)  n.m   n.m 
Income from net monetary position        (570,232)        (539,015)        (220,293)             (5.8%)         (158.9%)
Net income before income tax             58,067          185,736            84,947           (68.7%)           (31.6%)
Income tax          (23,916)        (112,022)          (26,692)            78.7%            10.4%
Net income for the period            34,151            73,714            58,255           (53.7%)           (41.4%)
Owners of the parent            34,777            74,619            58,292           (53.4%)           (40.3%)
Non-controlling interests               (626)               (905)                 (37)            30.8%  n.m 
           
Other comprehensive Income (OCI) (1)          (68,619)          308,403            (2,499)         (122.2%)  n.m 
Total comprehensive income          (34,468)          382,117            55,756         (109.0%)         (161.8%)
           
(1) Net of Income Tax.          

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 BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
Net Interest Income          787,768          751,616          508,840              4.8%            54.8%
Interest Income       1,276,536       1,333,722          966,560             (4.3%)            32.1%
From government securities            56,206          321,446          408,907           (82.5%)           (86.3%)
From private securities              1,409              1,412                 853             (0.2%)            65.2%
Interest from loans and other financing          411,447          508,830          369,193           (19.1%)            11.4%
Financial Sector             3,230             4,050             2,000          (20.2%)            61.5%
Overdrafts           69,858           64,620           67,055              8.1%              4.2%
Discounted Instruments         138,839         183,903           74,811          (24.5%)            85.6%
Mortgage loans             1,030             1,649             4,134          (37.5%)          (75.1%)
Pledge loans             9,485           13,986           13,312          (32.2%)          (28.7%)
Consumer Loans           39,946           51,379           47,032          (22.3%)          (15.1%)
Credit Cards           91,175         114,198         101,868          (20.2%)          (10.5%)
Financial leases             2,733             3,770             3,413          (27.5%)          (19.9%)
Loans for the prefinancing and financing of exports             1,278             1,647                599          (22.4%)          113.4%
Other loans           53,873           69,628           54,969          (22.6%)            (2.0%)
Premiums on reverse REPO transactions          457,401          243,448            67,961            87.9%  n.m 
CER/UVA clause adjustment          348,994          257,550          118,866            35.5%          193.6%
Other interest income              1,079              1,036                 780              4.2%            38.3%
Interest expenses          488,768          582,106          457,720           (16.0%)              6.8%
Deposits          434,640          554,718          430,336           (21.6%)              1.0%
Checking accounts         199,882         136,741           49,223            46.2%          306.1%
Savings accounts             5,258             3,764             1,969            39.7%          167.0%
Time deposits         156,604         336,621         299,460          (53.5%)          (47.7%)
Investment accounts           72,896           77,592           79,684            (6.1%)            (8.5%)
Other liabilities from financial transactions              3,457              5,476                 722           (36.9%)          378.8%
Interfinancial loans received              8,440              9,661              8,105           (12.6%)              4.1%
Premiums on  REPO transactions                   -                        3                   -            (100.0%)  N/A 
CER/UVA clause adjustment            42,231            12,247            18,554          244.8%          127.6%
Other interest expense                   -                        1                     3         (100.0%)         (100.0%)

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 BBVA ARGENTINA CONSOLIDATED
In millions of AR$. Rates and spreads in annualized %                
  1Q24 4Q23 1Q23
  Average Balance 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        5,634,900           1,276,536 90.9%        5,962,755           1,333,722 88.7%        6,589,751              966,560 59.5%
Debt securities        3,087,009              796,706 103.5%        2,816,442              771,355 108.7%        3,303,092              562,920 69.1%
Loans to customers/financial institutions        2,449,172              479,815 78.6%        2,944,063              562,358 75.8%        3,176,705              403,605 51.5%
Loans to the BCRA                  120                         6 20.1%                  312                         6 7.7%                      8                       31 1622.2%
Other assets             98,599                         9 0.0%           201,937                         3 0.0%           109,945                         4 0.0%
Total non interest-earning assets        2,329,953                       -    0.0%        2,028,453                       -    0.0%        2,265,252                       -    0.0%
Total Assets        7,964,853           1,276,536 64.3%        7,991,207           1,333,722 66.2%        8,855,003              966,560 44.3%
Total interest-bearing liabilities        3,749,919              488,768 52.3%        3,622,063              582,106 63.8%        4,531,958              457,720 41.0%
Savings accounts        1,501,695                  5,259 1.4%        1,424,579                  3,763 1.0%        1,658,532                  1,970 0.5%
Time deposits and investment accounts        1,101,010              271,731 99.0%        1,534,129              426,459 110.3%        2,429,204              397,697 66.4%
Debt securities issued             11,224                  3,312 118.4%             16,010                  5,155 127.8%                  171                     198 470.1%
Other liabilities        1,135,990              208,466 73.6%           647,345              146,729 89.9%           444,052                57,855 52.8%
Total non-interest-bearing liabilities        4,214,934                       -    0.0%        4,369,144                       -    0.0%        4,323,044                       -    0.0%
Total liabilities and equity        7,964,853              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.
8 
 
ASSETS & LIABILITIES PERFORMANCE - AR$ BBVA ARGENTINA CONSOLIDATED
In millions of AR$. Rates and spreads in annualized %                
  1Q24 4Q23 1Q23
  Average Balance 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        5,023,700           1,274,493 101.8%        5,396,094           1,331,305 97.9%        6,354,594              965,214 61.6%
Debt securities        2,751,688              796,626 116.1%        2,461,224              771,246 124.3%        3,264,073              562,753 69.9%
Loans to customers/financial institutions        2,180,963              477,861 87.9%        2,739,759              560,053 81.1%        2,982,375              402,430 54.7%
Loans to the BCRA                  118                         6 20.4%                  311                         6 7.7%                      4                       31 3244.4%
Other assets             90,931                       -    0.0%           194,801                       -    0.0%           108,142                       -    0.0%
Total non interest-earning assets           925,189                       -    0.0%        1,037,275                       -    0.0%        1,058,805                       -    0.0%
Total Assets        5,948,889           1,274,493 85.9%        6,433,369           1,331,305 82.1%        7,413,398              965,214 52.8%
Total interest-bearing liabilities        2,642,378              488,621 74.2%        2,814,022              581,825 82.0%        3,572,394              457,534 51.9%
Savings accounts           542,477                  5,240 3.9%           731,628                  3,750 2.0%           825,886                  1,955 1.0%
Time deposits and Investment accounts           954,424              271,674 114.2%        1,423,401              426,410 118.9%        2,311,156              397,643 69.8%
Debt securities issued             11,224                  3,312 118.4%             16,010                  5,155 127.8%                  171                     198 470.1%
Other liabilities        1,134,253              208,395 73.7%           642,983              146,511 90.4%           435,181                57,738 53.8%
Total non-interest-bearing liabilities        3,539,899                       -    0.0%        3,873,979                       -    0.0%        3,833,166                       -    0.0%
Total liabilities and equity        6,182,277              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.
ASSETS & LIABILITIES PERFORMANCE - FOREIGN CURRENCY BBVA ARGENTINA CONSOLIDATED
In millions of AR$. Rates and spreads in annualized %                
  1Q24 4Q23 1Q23
  Average Balance 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             611,200                  2,043 1.3%            566,661                  2,417 1.7%           235,157                  1,346 2.3%
Debt securities             335,321                       80 0.1%            355,218                     109 0.1%             39,020                     167 1.7%
Loans to customers/financial institutions             268,209                  1,954 2.9%            204,304                  2,305 4.5%           194,330                  1,175 2.5%
Loans to the BCRA                        2                       -    0.0%                       2                       -    0.0%                      4                       -    0.0%
Other assets                 7,668                         9 0.5%                7,137                         3 0.2%               1,804                         4 0.9%
Total non interest-earning assets          1,404,764                       -    0.0%            991,177                       -    0.0%        1,206,447                       -    0.0%
Total Assets          2,015,964                  2,043 0.4%         1,557,838                  2,417 0.6%        1,441,604                  1,346 0.4%
Total interest-bearing liabilities          1,107,541                     147 0.1%            808,041                     281 0.1%           959,565                     186 0.1%
Savings accounts             959,218                       19 0.0%            692,951                       14 0.0%           832,646                       16 0.0%
Time deposits and Investment accounts             146,586                       57 0.2%            110,728                       49 0.2%           118,048                       54 0.2%
Other liabilities                 1,737                       71 16.4%                4,362                     218 19.9%               8,871                     116 5.3%
Total non-interest-bearing liabilities             675,035                       -    0.0%            495,165                       -    0.0%           489,879                       -    0.0%
Total liabilities and equity          1,782,576                     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.
9 
 

 

Net Fee Income

NET FEE INCOME BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
Net Fee Income            50,504            53,974            43,933             (6.4%)            15.0%
Fee Income            91,087          107,271            85,246           (15.1%)              6.9%
Linked to liabilities            23,125            27,009            34,950           (14.4%)           (33.8%)
From credit cards (1)            46,524            56,236            31,668           (17.3%)            46.9%
Linked to loans              9,615            11,836              9,442           (18.8%)              1.8%
From insurance              3,300              3,378              3,755             (2.3%)           (12.1%)
From foreign trade and foreign currency transactions              5,115              4,188              3,917            22.1%            30.6%
Other fee income              3,357              4,426              1,514           (24.2%)          121.7%
Linked to loan commitments                   51                 198                   -              (74.2%)  N/A 
From guarantees granted                   64                   50                   25            28.0%          156.0%
Linked to securities              3,293              4,376              1,489           (24.7%)          121.2%
Fee expenses            40,583            53,297            41,313           (23.9%)             (1.8%)
           
 (1) Includes results from Puntos BBVA royalty program pursuant to IFRS 15 regulation.        

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.

10 
 

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 BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
Net Income from financial instruments at FV through P&L                 27,871        (105,662)            27,065          126.4%              3.0%
Income from government securities                 34,905        (136,757)            22,156          125.5%            57.5%
Income from private securities                      259              1,285              2,489           (79.8%)           (89.6%)
Interest rate swaps                         -                      (4)                   85          100.0%         (100.0%)
Income from foreign currency forward transactions                  (6,780)            29,678              2,440         (122.8%)         (377.9%)
Income from put option long position                     (611)               (421)               (105)           (45.1%)         (481.9%)
Income from corporate bonds                        96                 557                   -              (82.8%)  N/A 
Other                          2                   -                      -     N/A   N/A 

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 BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
Foreign exchange and gold gains/(losses) (1)            10,230          299,382              4,091           (96.6%)          150.1%
From foreign exchange position              3,549          283,007            (8,939)           (98.7%)          139.7%
Income from purchase-sale of foreign currency              6,681            16,375            13,030           (59.2%)           (48.7%)
Net income from financial instruments at FV through P&L (2)            (6,780)            29,678              2,440         (122.8%)         (377.9%)
Income from foreign currency forward transactions            (6,780)            29,678              2,440         (122.8%)         (377.9%)
Total differences in quoted prices of gold & foreign currency (1) + (2)              3,450          329,060              6,531           (99.0%)           (47.2%)

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.

 

11 
 

Other Operating Income

OTHER OPERATING INCOME BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
Operating Income            28,384            32,898            21,301           (13.7%)            33.3%
Rental of safe deposit boxes (1)              2,766              3,096              2,652           (10.7%)              4.3%
Adjustments and interest on miscellaneous receivables (1)            13,728            13,992              7,998             (1.9%)            71.6%
Punitive interest (1)                 960              1,039                 856             (7.6%)            12.1%
Loans recovered              1,474              3,480              2,529           (57.6%)           (41.7%)
Fee income from credit and debit cards (1)              1,930              1,798              1,848              7.3%              4.4%
Fee expenses recovery                 709                 942                 850           (24.7%)           (16.6%)
Rents              1,126                 820                 952            37.3%            18.3%
Sindicated transaction fees                 273                 338                 389           (19.2%)           (29.8%)
Disaffected provisions                 243                 807                 313           (69.9%)           (22.4%)
Other Operating Income(2)              5,175              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          

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.

12 
 

 

Operating Expenses

Personnel Benefits and Administrative Expenses

PERSONNEL BENEFITS & ADMINISTRATIVE EXPENSES BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
Total Personnel Benefits and Adminsitrative Expenses          193,073          178,727          178,544              8.0%              8.1%
Personnel Benefits (1)            89,808          101,160            85,535           (11.2%)              5.0%
Salaries            48,449            44,406            49,930              9.1%             (3.0%)
Social security withholdings and collections            15,743            17,478            14,528             (9.9%)              8.4%
Personnel compensation and bonuses              1,188              4,056              2,032           (70.7%)           (41.5%)
Personnel services              1,515              2,424              1,352           (37.5%)            12.1%
Other            22,913            32,796            17,693           (24.5%)            29.5%
Administrative expenses (1)          103,265            77,567            93,009            33.1%            11.0%
Travel expenses                 659                 572                 464            15.2%            42.0%
Outsourced administrative expenses            12,716            10,168            10,296            25.1%            23.5%
Security services              2,812              2,077              2,127            35.4%            32.2%
Fees to Bank Directors and Supervisory Committee                 108                 199                   93           (45.7%)            16.1%
Other fees              2,800              2,093              2,525            33.8%            10.9%
Insurance                 711                 784                 737             (9.3%)             (3.5%)
Rent            15,152              7,203            13,561          110.4%            11.7%
Stationery and supplies                 146                 161                   94             (9.3%)            55.3%
Electricity and communications              3,366              3,413              3,156             (1.4%)              6.7%
Advertising              7,074              4,548              6,005            55.5%            17.8%
Taxes            24,059            21,968            18,735              9.5%            28.4%
Maintenance costs              8,271              8,511              8,188             (2.8%)              1.0%
Armored transportation services              7,450              8,079              7,865             (7.8%)             (5.3%)
Software              6,824            (1,542)            10,582  n.m            (35.5%)
Document distribution              4,867              2,538              2,684            91.8%            81.3%
Commercial reports              1,908              1,433              2,939            33.1%           (35.1%)
Other administrative expenses              4,342              5,362              2,958           (19.0%)            46.8%
           
Headcount*          
BBVA (Bank)              5,976              5,918              5,863                   58                 113
Subsidiaries (2)                   92                   91                   94                     1                   (2)
Total employees*              6,068              6,009              5,957                   59                 111
In branches**              3,734              3,795              1,919                 (61)              1,815
At Main office              2,245              2,214              4,038                   31            (1,793)
           
Total branches***                 242                 243                 243                   (1)                   (1)
Own                 111                 112                 113                   (1)                   (2)
Rented                 131                 131                 130                   -                        1
                                  -  
Efficiency Ratio          
Efficiency ratio 65.4% 46.4% 62.4%      (3,602)bps         (665)bps
Accumulated Efficiency Ratio 65.4% 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          

 

13 
 

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 BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
Other Operating Expenses          106,264          130,761            78,704           (18.7%)            35.0%
Turnover tax            60,617            91,614            60,660           (33.8%)             (0.1%)
Initial loss of loans below market rate              3,093              7,803              3,867           (60.4%)           (20.0%)
Contribution to the Deposit Guarantee Fund (SEDESA)              1,645              1,939              2,272           (15.2%)           (27.6%)
Interest on liabilities from financial lease                 739                 726                 666              1.8%            11.0%
Other allowances            34,571            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                 511                 916              1,068           (44.2%)           (52.2%)
Other operating expenses              5,088              9,657              4,109           (47.3%)            23.8%

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.

14 
 

 

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 interim financial periods over the best estimate of the weighted average tax rate expected for the fiscal year.

15 
 

 

Balance sheet and activity

Loans and Other Financing

LOANS AND OTHER FINANCING BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
To the public sector                    65                  220                       11       (70.5%)        490.9%
To the financial sector             17,831             24,915                20,919       (28.4%)         (14.8%)
Non-financial private sector and residents abroad        2,652,619        3,039,018           3,395,087       (12.7%)        (21.9%)
Non-financial private sector and residents abroad - AR$        2,289,311        2,732,295           3,206,164       (16.2%)        (28.6%)
Overdrafts           323,509           267,617              417,498        20.9%         (22.5%)
Discounted instruments           514,205           702,771              558,996       (26.8%)           (8.0%)
Mortgage loans           125,697           120,395              169,578          4.4%         (25.9%)
Pledge loans             42,407             67,222              105,273       (36.9%)         (59.7%)
Consumer loans           199,943           230,192              356,291       (13.1%)         (43.9%)
Credit cards           845,550        1,033,533           1,214,818       (18.2%)         (30.4%)
Receivables from financial leases             13,498             19,118                27,156       (29.4%)         (50.3%)
Other loans           224,502           291,447              356,554       (23.0%)         (37.0%)
Non-financial private sector and residents abroad - Foreign Currency           363,308           306,723              188,923        18.4%          92.3%
Overdrafts                      9                    19                       30       (52.6%)         (70.0%)
Discounted instruments                  902               4,236                  3,104       (78.7%)         (70.9%)
Credit cards             29,582             31,849                29,786         (7.1%)           (0.7%)
Receivables from financial leases                    94                  168                     352       (44.0%)         (73.3%)
Loans for the prefinancing and financing of exports           292,688           232,286              126,675        26.0%        131.1%
Other loans             40,033             38,165                28,976          4.9%          38.2%
           
% of total loans to Private sector in AR$ 86.3% 89.9% 94.4%     (360)bps      (813)bps
% of total loans to Private sector in Foreign Currency 13.7% 10.1% 5.6%      360 bps        813 bps
           
% of mortgage loans with UVA adjustments / Total mortgage loans (1) 52.3% 53.5% 56.2%     (121)bps       (397)bps
% of pledge loans with UVA adjustments / Total pledge loans (1) 2.1% 1.3% 1.7%         77 bps          41 bps
% of consumer loans with UVA adjustments / Total consumer loans (1) 0.0% 0.1% 0.4%         (3)bps         (39)bps
% of loans with UVA adjustments / Total loans and other financing(1) 0.1% 0.0% 0.1%           0 bps           (8)bps
           
Total loans and other financing        2,670,515        3,064,153           3,416,017       (12.8%)        (21.8%)
Allowances            (59,869)            (68,869)            (104,149)        13.1%          42.5%
Total net loans and other financing        2,610,646        2,995,284           3,311,868       (12.8%)        (21.2%)
           
(1) Excludes effect of accrued interests adjustments.          

 

LOANS AND OTHER FINANCING TO NON-FINANCIAL PRIVATE SECTOR AND RESIDENTS ABROAD IN FOREIGN CURRENCY BBVA ARGENTINA CONSOLIDATED
In millions of USD       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
FX rate*            857.42            808.48            208.99              6.1%          310.3%
Non-financial private sector and residents abroad - Foreign Currency (USD)                 424                 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.        

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.

16 
 

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 BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
Non-financial private sector and residents abroad - Retail       1,243,179       1,483,191         1,875,746           (16.2%)           (33.7%)
Mortgage loans          125,697          120,395            169,578              4.4%           (25.9%)
Pledge loans            42,407            67,222            105,273           (36.9%)           (59.7%)
Consumer loans          199,943          230,192            356,291           (13.1%)           (43.9%)
Credit cards          875,132       1,065,382         1,244,604           (17.9%)           (29.7%)
Non-financial private sector and residents abroad - Commercial       1,409,440       1,555,827         1,519,341             (9.4%)             (7.2%)
Overdrafts          323,518          267,636            417,528            20.9%           (22.5%)
Discounted instruments          515,107          707,007            562,100           (27.1%)             (8.4%)
Receivables from financial leases            13,592            19,286              27,508           (29.5%)           (50.6%)
Loans for the prefinancing and financing of exports          292,688          232,286            126,675            26.0%          131.1%
Other loans          264,535          329,612            385,530           (19.7%)           (31.4%)
           
% of total loans to Retail sector 46.9% 48.8% 55.2%         (194)bps         (838)bps
% of total loans to Commercial sector 53.1% 51.2% 44.8%          194 bps          838 bps

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 foreign exchange rates on BCRA’s Communication “A” 3500.

17 
 
LOANS AND OTHER FINANCING - NON RESTATED FIGURES BBVA ARGENTINA CONSOLIDATED
In millions of AR$       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
Non-financial private sector and residents abroad - Retail       1,243,179          978,218          483,605            27.1%          157.1%
Non-financial private sector and residents abroad - Commercial       1,409,440       1,026,124          391,718            37.4%          259.8%
Total loans and other financing (1)       2,670,515       2,020,919          880,719            32.1%          203.2%
(1) Does not include allowances          

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 
 

 

Asset Quality

ASSET QUALITY BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
Commercial non-performing portfolio (1)              3,032              4,337              5,298             (30.1%)             (42.8%)
Total commercial portfolio       1,305,626       1,372,303       1,327,758               (4.9%)               (1.7%)
Commercial non-performing portfolio / Total commercial portfolio 0.23% 0.32% 0.40%                 (8)pbs                 (17)pbs 
Retail non-performing portfolio (1)            31,421            37,324            41,979             (15.8%)             (25.2%)
Total retail portfolio       1,503,547       1,867,014       2,273,540             (19.5%)             (33.9%)
Retail non-performing portfolio / Total retail portfolio 2.09% 2.00% 1.85%                    9 pbs                  24 pbs 
Total non-performing portfolio (1)            34,453            41,661            47,277             (17.3%)             (27.1%)
Total portfolio       2,809,173       3,239,317       3,601,298             (13.3%)             (22.0%)
Total non-performing portfolio / Total portfolio 1.23% 1.29% 1.31%                 (6)pbs                  (9)pbs 
Allowances            59,869            68,869          104,149             (13.1%)             (42.5%)
Allowances  /Total non-performing portfolio  173.77% 165.31% 220.30%              846 pbs         (4.653)pbs 
Quarterly change in Write-offs               9,263            12,422              8,233             (25.4%)              12.5%
Write offs / Total portfolio 0.33% 0.38% 0.23%                 (5)pbs                  10 pbs 
Cost of Risk (CoR) 3.76% 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

 

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$             
  Balance at 12/31/2023 Stage 1 Stage 2 Stage 3 Monetary result generated by allowances Balance at 03/31/2024
Other financial assets               2,151                   42                   -                      52                     (746)                 1,499
Loans and other financing             68,869              3,487              3,033              7,767                (23,287)               59,869
Other debt securities                  149                   69                   -                      -                          (53)                    165
Eventual commitments               9,055              2,014                 506                   27                  (3,348)                 8,254
Total allowances             80,224              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  

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 
 

Public Sector Exposure

NET PUBLIC DEBT EXPOSURE* BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
Treasury and Government securities       1,127,687       1,479,822          832,259           (23.8%)            35.5%
Treasury and National Government       1,127,687       1,479,822          832,259           (23.8%)            35.5%
   National Treasury Public Debt in AR$          896,546       1,136,417          830,436           (21.1%)              8.0%
   National Treasury Public Debt in USD            16,345              3,058                   46          434.5%  n.m 
   National Treasury Public Debt in AR$ linked to US dollars          214,797          340,347              1,777           (36.9%)  n.m 
Loans to theNon-financial Public Sector                   65                 220                   11           (70.5%)          490.9%
AR$ Subtotal          896,546       1,136,417          830,436           (21.1%)              8.0%
USD Subtotal**          231,141          343,405              1,823           (32.7%)  n.m 
Total Public Debt Exposure       1,127,687       1,479,822          832,259           (23.8%)            35.5%
B.C.R.A. Exposure       2,078,468       2,020,632       2,608,597              2.9%           (20.3%)
Instruments            45,562          197,498       2,060,958           (76.9%)           (97.8%)
Leliqs                   -               91,708       2,051,393         (100.0%)         (100.0%)
Notaliqs            16,634          105,790              9,565           (84.3%)            73.9%
Lediv***            28,928                   -                      -     N/A   N/A 
Repo / Pases        2,032,906       1,823,134          547,640            11.5%          271.2%
           
 % Public sector exposure (Excl. B.C.R.A.) / Total assets 13.9% 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 USD-linked Treasury public debt in AR$
***Securities denominated in foreign currency

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 
 

Deposits

TOTAL DEPOSITS BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
Total deposits        4,775,475        5,517,980         6,096,737             (13.5%)              (21.7%)
Non-financial Public Sector           161,850             51,602              46,693            213.7%              246.6%
Financial Sector               3,104               3,901                3,992             (20.4%)              (22.2%)
Non-financial private sector and residents abroad        4,610,521        5,462,477         6,046,052             (15.6%)              (23.7%)
Non-financial private sector and residents abroad - AR$        3,223,170        3,553,436         4,781,917               (9.3%)              (32.6%)
Checking accounts        1,273,205        1,384,327         1,248,328               (8.0%)                  2.0%
Savings accounts           707,878           898,641            993,005             (21.2%)              (28.7%)
Time deposits           951,349           969,671         1,954,571               (1.9%)              (51.3%)
Investment accounts            269,862           276,144            550,595               (2.3%)              (51.0%)
Other             20,876             24,653              35,418             (15.3%)              (41.1%)
Non-financial private sector and res. abroad - Foreign Currency        1,387,351        1,909,041         1,264,135             (27.3%)                  9.7%
Checking accounts                  269                  983                   355             (72.6%)              (24.2%)
Savings accounts        1,241,271        1,709,489         1,136,502             (27.4%)                  9.2%
Time deposits           134,936           182,537            115,907             (26.1%)                16.4%
Other             10,875             16,032              11,371             (32.2%)                (4.4%)
           
% of total portfolio in the private sector in AR$ 69.9% 65.1% 79.1%                486 pbs               (918)pbs 
% of total portfolio in the private sector in Foregin Currency 30.1% 34.9% 20.9%              (486)pbs                  918 pbs 
           
% of UVA Time deposits & Investment accounts / Total AR$ Time deposits & Investment accounts 0.0% 1.3% 2.4%              (128)pbs               (237)pbs 

DEPOSITS TO THE NON-FINANCIAL PRIVATE SECTOR AND RES. ABROAD IN FOREIGN CURRENCY BBVA ARGENTINA CONSOLIDATED
In millions of USD       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
FX rate*              857.4              808.5              209.0              6.1%          310.2%
Non-financial private sector and residents abroad - Foreign Currency (USD) 1618 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.

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 BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
Non-financial private sector and residents abroad        4,610,521        5,462,477        6,046,052              (15.6%)              (23.7%)
Sight deposits        3,254,374        4,034,125        3,424,979              (19.3%)                (5.0%)
Checking accounts        1,273,474        1,385,310        1,248,683                (8.1%)                  2.0%
Savings accounts        1,949,149        2,608,130        2,129,507              (25.3%)                (8.5%)
Other             31,751             40,685             46,789              (22.0%)              (32.1%)
Time deposits        1,356,147        1,428,352        2,621,073                (5.1%)              (48.3%)
Time deposits        1,086,285        1,152,208        2,070,478                (5.7%)              (47.5%)
Investment accounts           269,862           276,144           550,595                (2.3%)              (51.0%)
           
% of sight deposits over total private deposits 71.6% 74.1% 57.0%               (251)pbs              1.459 pbs 
% of time deposits over total private deposits 28.4% 25.9% 43.0%                 251 pbs            (1.459)pbs 

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 BBVA ARGENTINA CONSOLIDATED
In millions of AR$       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
Sight deposits       3,254,374       2,660,650          883,030            22.3%          268.5%
Time deposits       1,356,147          942,050          675,766            44.0%          100.7%
Total deposits       4,610,521       3,602,700       1,571,863            28.0%          193.3%

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 BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
Other sources of funds       2,132,089       2,194,234       1,829,420             (2.8%)            16.5%
Central Bank                 105                 166                 301           (36.7%)           (65.1%)
Banks and international organizations                 898              4,051              3,072           (77.8%)           (70.8%)
Financing received from local financial institutions            20,380            38,525            68,212           (47.1%)           (70.1%)
Corporate bonds            12,297            19,433                              -            (36.7%)   N/A  
Equity       2,098,409       2,132,059       1,757,835             (1.6%)            19.4%
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 BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
Total liquid assets        4,390,576        5,030,988        4,797,801           (12.7%)             (8.5%)
Cash and deposits in banks        1,272,944        1,732,960        1,451,088           (26.5%)           (12.3%)
Debt securities at fair value through P&L           226,738           339,531           109,831           (33.2%)          106.4%
Government securities           226,738           339,531             33,058           (33.2%)  n.m 
Liquidity bills of B. C. R. A.                     -                        -                76,773  N/A          (100.0%)
Net REPO transactions        2,032,906        1,823,133           547,637            11.5%          271.2%
Other debt securities           857,988        1,135,364        2,689,245           (24.4%)           (68.1%)
Government securities           841,354           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.             16,634           105,789               9,565          (84.3%)            73.9%
           
Liquid assets / Total Deposits 91.9% 91.2% 78.7%            77 bps       1,325 bps

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.

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Solvency

MINIMUM CAPITAL REQUIREMENT BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
Minimum capital requirement          429,809          510,426          473,407           (15.8%)             (9.2%)
Credit risk          287,383          336,740          335,078           (14.7%)           (14.2%)
Market risk              2,013              9,913              5,554           (79.7%)           (63.8%)
Operational risk          140,413          137,230          132,775              2.3%              5.8%
           
Integrated Capital - RPC (1)*       1,874,075       1,942,276       1,616,560             (3.5%)            15.9%
Ordinary Capital Level 1 ( COn1)       2,071,725       2,087,252       1,764,899             (0.7%)            17.4%
Deductible items COn1        (197,650)        (144,976)        (172,446)           (36.3%)           (14.6%)
Additional Capital Level 2 (COn2)                   -                      -               24,106  N/A          (100.0%)
           
Excess Capital          
Integration excess       1,444,266       1,431,851       1,143,152              0.9%            26.3%
Excess as  % of minimum capital requirement 336.0% 280.5% 241.5%        5,550 bps        9,455 bps
           
Risk-weighted assets (RWA, according to B.C.R.A. regulation) (2)       5,267,978       5,925,939       5,795,597           (11.1%)             (9.1%)
           
Regulatory Capital Ratio (1)/(2) 35.6% 32.8% 27.9%          280 pbs          768 pbs
TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) 35.6% 32.8% 27.5%          280 pbs          810 pbs
           
* RPC includes 100% of quarterly results

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.

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BBVA Argentina Asset Management S.A.

MUTUAL FUNDS ASSETS BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
FBA Renta Pesos       1,406,187         1,872,107       1,940,556           (24.9%)           (27.5%)
FBA Renta Fija Plus            25,240              30,872            12,160           (18.2%)          107.6%
FBA Ahorro Pesos            20,578              24,118            11,434           (14.7%)            80.0%
FBA Horizonte              8,605                6,048            30,316            42.3%           (71.6%)
FBA Calificado            14,998                7,389            23,598          103.0%           (36.4%)
FBA Acciones Argentinas              5,318                6,539              4,852           (18.7%)              9.6%
FBA Acciones Latinoamericanas              3,164                3,025              3,157              4.6%              0.2%
FBA Bonos Argentina              2,682                1,830              4,329            46.6%           (38.0%)
FBA Bonos Globales              1,999                   846              1,761          136.3%            13.5%
FBA Renta Mixta              1,080                   735              1,466            46.9%           (26.3%)
FBA Gestión I                   70                     99                 182           (29.3%)           (61.5%)
FBA Horizonte Plus                   16                     24                 101           (33.3%)           (84.2%)
FBA Retorno Total I                   10                     20                   78           (50.0%)           (87.2%)
FBA Renta Publica I                   10                     17                   43           (41.2%)           (76.7%)
FBA Renta Fija Local                     4                       6                   12           (33.3%)           (66.7%)
Total assets       1,489,961         1,953,675       2,034,045           (23.7%)           (26.7%)
           
AMASAU Net Income              1,356                   448              3,993          202.7%           (66.0%)

 

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

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Other Events

Main Relevant Events

·Call to the Annual Shareholders’ Meeting. As of March 19, 2024, the Board has decided to call the Annual Ordinary and Extraordinary General Shareholders' Meeting for April 26, 2024. 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, the Board of Directors has resolved to propose, to the Annual General Ordinary and Extraordinary Shareholders Meeting to be held on April 26th 2024: the partial write-off of the optional reserve for future distribution of results in the sum - expressed in homogeneous currency 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, subject to prior authorization from the BCRA. This sum amounts in homogeneous currency as of today to $400.6 billion based on the consumer price index for the month of March published by the INDEC. For more information click here
·C-level changes. As of April 24, 2024, the Board of Directors, in its meeting following the shareholders' meeting held today, accepted the resignation presented by Mr. Martín Ezequiel Zarich 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 of the approval by the Central Bank of the Argentine Republic. In addition, it was resolved to replace Mr. Gustavo O. Fernández, Director of Talent and Culture, for Ms. Vanesa E. Bories. For more information click here.
·Dividend distribution approval. As of May 7, 2024, the BCRA’s Superintendence of Exchange Institutions has resolved to authorize Banco BBVA Argentina S.A. the distribution of profits 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 with the provisions of Communication “A” 7997 of the BCRA, “nonresident” shareholders may choose to collect dividends – totally or partially – in a single installment as long as these funds are applied directly to the primary subscription of Bonds for the reconstruction of a free Argentina (BOPREAL). Those BOPREAL will be subject to the restrictions on transfer or sale with settlement in foreign currency established by the applicable regulations. For more information click here.
·Installment 1 and dividend payment schedule. As of May 7, 2024, as resolved by the General Ordinary and Extraordinary Shareholders ̓Meeting held on April 26, 2024, the authorization of the BCRA Financial and Exchange Entities Authority obtained on May 3, 2024 and the Board of Directors meeting held on May 6, 2024, approved the payment of a dividend in the amount of $ 264.2 billion expressed in homogeneous currency as of December 31, 2023. That amount in homogeneous currency as of this relevant event is $400.6 billion. Dividends would be paid as follows: Non-resident shareholders may choose to receive their dividends in a single installment for the purposes of being applied to the subscription of Bonds for the Reconstruction of a Free Argentina (BOPREAL). The BCRA has
26 
 

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.

27 
 

 

SMEs Productive investment financing credit 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 foreign currency. (Communication “A” 7997, 04.30.2024). Financial institutions that have decided to distribute

29 
 

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).

30 
 

 

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).

31 
 

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 BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
Assets          
Cash and deposits in banks           1,272,944           1,732,960           1,451,088               (26.5%)               (12.3%)
Cash        722,438     1,102,701        465,664          (34.5%)           55.1%
 Financial institutions and correspondents        550,506        630,259        984,849          (12.7%)          (44.1%)
BCRA   465,585   545,617   948,363          (14.7%)          (50.9%)
Other local and foreign financial institutions     84,921     84,642     36,486             0.3%         132.7%
Other                                -                                 -           575   N/A          (100.0%)
Debt securities at fair value through profit or loss              228,613              342,791              109,831               (33.3%)              108.1%
Derivatives                12,036                15,165                  4,367               (20.6%)              175.6%
Repo transactions           2,032,906           1,823,133              547,637                11.5%              271.2%
Other financial assets              102,522              138,148              150,717               (25.8%)               (32.0%)
Loans and other financing           2,610,646           2,995,284           3,311,868               (12.8%)               (21.2%)
Non-financial public sector                 65               220                 11          (70.5%)         490.9%
B.C.R.A                                -                                 -                                 -    N/A     N/A  
Other financial institutions          17,065          23,428          20,481          (27.2%)          (16.7%)
Non-financial private sector and residents abroad           2,593,516           2,971,636           3,291,376               (12.7%)               (21.2%)
Other debt securities              875,623           1,148,948           2,707,850               (23.8%)               (67.7%)
Financial assets pledged as collateral              266,170              396,695              206,053               (32.9%)                29.2%
Current income tax assets                     204                     243                     297               (16.0%)               (31.3%)
Investments in equity instruments                  7,767                  7,901                  4,711                 (1.7%)                64.9%
Investments in subsidiaries and associates                15,864                18,750                17,792               (15.4%)               (10.8%)
Property and equipment              465,650              452,163              450,531                  3.0%                  3.4%
Intangible assets                50,912                50,244                45,166                  1.3%                12.7%
Deferred income tax assets                30,446                  4,315                  5,966   n.m                410.3%
Other non-financial assets              130,902              158,058              137,874               (17.2%)                 (5.1%)
Non-current assets held for sale                  1,292                  1,292                  1,253                              -                   3.1%
Total Assets           8,104,497           9,286,090           9,153,001               (12.7%)               (11.5%)
Liabilities          
Deposits           4,775,475           5,517,980           6,096,737               (13.5%)               (21.7%)
Non-financial public sector        161,850          51,602          46,693         213.7%         246.6%
Financial sector            3,104            3,901            3,992          (20.4%)          (22.2%)
Non-financial private sector and residents abroad     4,610,521     5,462,477     6,046,052          (15.6%)          (23.7%)
Liabilities at fair value through profit or loss                  8,015                15,663                                -                (48.8%)   N/A  
Derivatives                  3,998                  3,253                  2,020                22.9%                97.9%
Other financial liabilities              540,702              679,657              514,740               (20.4%)                  5.0%
Financing received from the B.C.R.A. and other financial institutions                21,383                42,742                71,585               (50.0%)               (70.1%)
Corporate bonds issued                12,297                19,433                                -                (36.7%)   N/A  
Current income tax liabilities              191,784              291,367                61,954               (34.2%)              209.6%
Provisions                52,056                31,422                38,414                65.7%                35.5%
Deferred income tax liabilities                                -                 35,504                21,995             (100.0%)             (100.0%)
Other non-financial liabilities              373,953              489,766              562,246               (23.6%)               (33.5%)
Total Liabilities           5,979,663           7,126,787           7,369,691               (16.1%)               (18.9%)
Equity          
Share Capital                     613                     613                     613                              -                               - 
Non-capitalized contributions                  6,745                  6,745                  6,745                              -                               - 
Capital adjustments              626,238              626,238              626,238                              -                               - 
Reserves              985,773              985,773              826,100                              -                 19.3%
Retained earnings              249,481                                -               277,751   N/A                 (10.2%)
Other accumulated comprehensive income              194,782              263,209              (37,904)               (26.0%)   n.m  
Income for the period                34,777              249,481                58,292               (86.1%)               (40.3%)
Equity attributable to owners of the Parent     2,098,409     2,132,059     1,757,835            (1.6%)           19.4%
Equity attributable to non-controlling interests          26,425          27,244          25,475            (3.0%)             3.7%
Total Equity           2,124,834           2,159,303           1,783,310                 (1.6%)                19.2%
Total Liabilities and Equity           8,104,497           9,286,090           9,153,001               (12.7%)               (11.5%)
33 
 

Balance Sheet – Five quarters

BALANCE SHEET BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted          
  1Q24 4Q23 3Q23 2Q23 1Q23
Assets          
Cash and deposits in banks                 1,272,944                 1,732,960                 1,111,751                 1,330,499                 1,451,088
Cash              722,438           1,102,701              586,293              442,109              465,664
 Financial institutions and correspondents              550,506              630,259              525,045              734,102              984,849
B.C.R.A          465,585          545,617          482,664          705,910          948,363
Other local and foreign financial institutions            84,921            84,642            42,381            28,192            36,486
Other                              -                             -                  413          154,288                 575
Debt securities at fair value through profit or loss                    228,613                    342,791                    249,730                    251,388                    109,831
Derivatives                      12,036                      15,165                      29,988                      10,215                        4,367
Repo transactions                 2,032,906                 1,823,133                    708,331                    550,653                    547,637
Other financial assets                    102,522                    138,148                    202,272                    284,137                    150,717
Loans and other financing                 2,610,646                 2,995,284                 3,143,792                 3,296,725                 3,311,868
Non-financial public sector                       65                     220                     130                       12                       11
B.C.R.A                              -                             -                                 -                               -                               - 
Other financial institutions                17,065                23,428                10,529                22,188                20,481
Non-financial private sector and residents abroad           2,593,516           2,971,636           3,133,133           3,274,525           3,291,376
Other debt securities                    875,623                 1,148,948                 2,565,106                 3,185,364                 2,707,850
Financial assets pledged as collateral                    266,170                    396,695                    336,633                    249,190                    206,053
Current income tax assets                           204                           243                           284                           252                           297
Investments in equity instruments                        7,767                        7,901                        6,913                        7,282                        4,711
Investments in subsidiaries and associates                      15,864                      18,750                      17,373                      17,333                      17,792
Property and equipment                    465,650                    452,163                    447,132                    447,289                    450,531
Intangible assets                      50,912                      50,244                      47,979                      46,188                      45,166
Deferred income tax assets                      30,446                        4,315                        5,280                        5,878                        5,966
Other non-financial assets                    130,902                    158,058                    148,655                    134,554                    137,874
Non-current assets held for sale                        1,292                        1,292                        1,253                        1,253                        1,253
Total Assets                 8,104,497                 9,286,090                 9,022,472                 9,818,200                 9,153,001
Liabilities          
Deposits                 4,775,475                 5,517,980                 6,028,636                 6,297,462                 6,096,737
Non-financial public sector              161,850                51,602                48,480                34,485                46,693
Financial sector                  3,104                  3,901                  2,990                  5,927                  3,992
Non-financial private sector and residents abroad           4,610,521           5,462,477           5,977,166           6,257,050           6,046,052
Liabilities at fair value through profit or loss                        8,015                      15,663                           202                              -                               - 
Derivatives                        3,998                        3,253                        5,403                        1,479                        2,020
Other financial liabilities                    540,702                    679,657                    488,902                    872,877                    514,740
Financing received from the B.C.R.A. and other financial institutions                      21,383                      42,742                      54,578                      86,834                      71,585
Corporate bonds issued                      12,297                      19,433                                -                               -                               - 
Current income tax liabilities                    191,784                    291,367                      50,008                      85,986                      61,954
Provisions                      52,056                      31,422                      24,862                      36,738                      38,414
Deferred income tax liabilities                              -                       35,504                      64,043                      44,952                      21,995
Other non-financial liabilities                    373,953                    489,766                    528,758                    615,126                    562,246
Total Liabilities                 5,979,663                 7,126,787                 7,245,392                 8,041,454                 7,369,691
Equity          
Share Capital                           613                           613                           613                           613                           613
Non-capitalized contributions                        6,745                        6,745                        6,745                        6,745                        6,745
Capital adjustments                    626,238                    626,238                    626,238                    626,238                    626,238
Reserves                    985,773                    985,773                    985,773                    985,773                    826,100
Retained earnings                    249,481                            -                                 -                               -                     277,751
Other accumulated comprehensive income                    194,782                    263,209                    (44,105)                    (21,529)                    (37,904)
Income for the period                34,777              249,481              174,862              152,479                58,292
Equity attributable to owners of the Parent           2,098,409           2,132,059           1,750,126           1,750,319           1,757,835
Equity attributable to non-controlling interests                26,425                27,244                26,954                26,427                25,475
Total Equity                 2,124,834                 2,159,303                 1,777,080                 1,776,746                 1,783,310
Total Liabilities and Equity                 8,104,497                 9,286,090                 9,022,472                 9,818,200                 9,153,001


34 
 

Balance Sheet – Foreign Currency Exposure

FOREIGN CURRENCY EXPOSURE BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
Assets          
Cash and deposits in banks           1,171,919           1,632,542           1,166,708               (28.2%)                   0.4%
Debt securities at fair value through profit or loss              216,467              341,452                     609               (36.6%)  n.m 
Other financial assets                36,310                58,038                37,961               (37.4%)                 (4.3%)
Loans and other financing              356,372              298,631              164,157                 19.3%               117.1%
Other financial institutions                    4                    6                    4          (33.3%)                    -
  Non-financial private sector and residents abroad         356,364         298,622         164,153           19.3%         117.1%
Other debt securities           72,064         112,306           22,946          (35.8%)         214.1%
Financial assets pledged as collateral                55,204                64,315                19,855               (14.2%)               178.0%
Investments in equity instruments                     538                     655                     295               (17.9%)                 82.4%
Total foreign currency assets           1,908,874           2,507,939           1,412,531               (23.9%)                 35.1%
Liabilities          
Deposits           1,542,798           1,943,560           1,295,165               (20.6%)                 19.1%
  Non-Financial Public Sector         154,723           33,560           30,498         361.0%         407.3%
  Financial Sector                724                958                473          (24.4%)           53.1%
  Non-financial private sector and residents abroad      1,387,351      1,909,042      1,264,194          (27.3%)             9.7%
Other financial liabilities              121,484              121,191                94,139                   0.2%                 29.0%
Financing received from the  B.C.R.A. and other financial institutions                  1,188                  4,729                  5,213               (74.9%)               (77.2%)
Other non financial liabilities                69,185                93,842                63,412               (26.3%)                   9.1%
Total foreign currency liabilities           1,734,655           2,163,322           1,457,929               (19.8%)                 19.0%
           
Foreign Currency Net Position - AR$              174,219              344,617               (45,398)               (49.4%)               483.8%
           
Foreign Currency Net Position - USD                     203                     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.      
35 
 

 

Income Statement

INCOME STATEMENT BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q24 4Q23 1Q23 QoQ YoY
Interest income       1,276,536       1,333,722          966,560             (4.3%)            32.1%
Interest expense        (488,768)        (582,106)        (457,720)            16.0%             (6.8%)
Net interest income          787,768          751,616          508,840              4.8%            54.8%
Fee income            91,087          107,271            85,246           (15.1%)              6.9%
Fee expenses          (40,583)          (53,297)          (41,313)            23.9%              1.8%
Net fee income            50,504            53,974            43,933             (6.4%)            15.0%
Net income from financial instruments at fair value through P&L            27,871        (105,662)            27,065          126.4%              3.0%
Net loss from write-down of assets at amortized cost and fair value through OCI            62,924            44,764                 149            40.6%   n.m  
Foreign exchange and gold gains            10,230          299,382              4,091           (96.6%)          150.1%
Other operating income            28,384            32,898            21,301           (13.7%)            33.3%
Loan loss allowances          (26,880)          (31,380)          (31,719)            14.3%            15.3%
Net operating income          940,801       1,045,592          573,660           (10.0%)            64.0%
Personnel benefits          (89,808)        (101,160)          (85,535)            11.2%             (5.0%)
Administrative expenses        (103,265)          (77,567)          (93,009)           (33.1%)           (11.0%)
Depreciation and amortization          (10,280)          (11,440)          (10,939)            10.1%              6.0%
Other operating expenses        (106,264)        (130,761)          (78,704)            18.7%           (35.0%)
Operating expenses        (309,617)        (320,928)        (268,187)              3.5%           (15.4%)
Operating income          631,184          724,664          305,473           (12.9%)          106.6%
Income from associates and joint ventures            (2,885)                   87               (233)   n.m     n.m  
Income from net monetary position        (570,232)        (539,015)        (220,293)             (5.8%)         (158.9%)
Income before income tax            58,067          185,736            84,947           (68.7%)           (31.6%)
Income tax          (23,916)        (112,022)          (26,692)            78.7%            10.4%
Income for the period            34,151            73,714            58,255           (53.7%)           (41.4%)
Owners of the parent            34,777            74,619            58,292           (53.4%)           (40.3%)
Non-controlling interests               (626)               (905)                 (37)            30.8%   n.m  
           
Other comprehensive Income (1)          (68,619)          308,403            (2,499)         (122.2%)   n.m  
Total comprehensive income          (34,468)          382,117            55,756         (109.0%)         (161.8%)
(1) Net of Income Tax.

 

36 
 

 

Income Statement – 3 month accumulated

INCOME STATEMENT - 3 MONTH ACCUMULATED BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted      
  2024 2023 ∆ %
Interest income       1,276,536          966,560            32.1%
Interest expense        (488,768)        (457,720)             (6.8%)
Net interest income          787,768          508,840            54.8%
Fee income            91,087            85,246              6.9%
Fee expenses          (40,583)          (41,313)              1.8%
Net fee income            50,504            43,933            15.0%
Net income from financial instruments at fair value through P&L            27,871            27,065              3.0%
Net loss from write-down of assets at amortized cost and fair value through OCI            62,924                 149   n.m  
Foreign exchange and gold gains            10,230              4,091          150.1%
Other operating income            28,384            21,301            33.3%
Loan loss allowances          (26,880)          (31,719)            15.3%
Net operating income          940,801          573,660            64.0%
Personnel benefits          (89,808)          (85,535)             (5.0%)
Administrative expenses        (103,265)          (93,009)           (11.0%)
Depreciation and amortization          (10,280)          (10,939)              6.0%
Other operating expenses        (106,264)          (78,704)           (35.0%)
Operating expenses        (309,617)        (268,187)           (15.4%)
Operating income          631,184          305,473          106.6%
Income from associates and joint ventures            (2,885)               (233)   n.m  
Income from net monetary position        (570,232)        (220,293)         (158.9%)
Income before income tax            58,067            84,947           (31.6%)
Income tax          (23,916)          (26,692)            10.4%
Income for the period            34,151            58,255           (41.4%)
Owners of the parent            34,777            58,292           (40.3%)
Non-controlling interests               (626)                 (37)   n.m  
       
Other comprehensive Income (OCI) (1)          (68,619)            (2,499)   n.m  
Total comprehensive income          (34,468)            55,756         (161.8%)
(1) Net of Income Tax.      
37 
 

 

Income Statement – 5 quarters

INCOME STATEMENT BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted          
  1Q24 4Q23 3Q23 2Q23 1Q23
Interest income       1,276,536       1,333,722       1,364,045       1,163,229          966,560
Interest expense        (488,768)        (582,106)        (735,968)        (581,947)        (457,720)
Net interest income          787,768          751,616          628,077          581,282          508,840
Fee income            91,087          107,271            90,312          103,499            85,246
Fee expenses          (40,583)          (53,297)          (50,894)          (30,137)          (41,313)
Net fee income            50,504            53,974            39,418            73,362            43,933
Net income from financial instruments at fair value through P&L            27,871        (105,662)            18,993            23,232            27,065
Net loss from write-down of assets at amortized cost and fair value through OCI            62,924            44,764              9,455              7,176                 149
Foreign exchange and gold gains            10,230          299,382              4,975            10,125              4,091
Other operating income            28,384            32,898            24,761            23,001            21,301
Loan loss allowances          (26,880)          (31,380)          (17,939)          (34,773)          (31,719)
Net operating income          940,801       1,045,592          707,740          683,405          573,660
Personnel benefits          (89,808)        (101,160)          (98,583)          (90,898)          (85,535)
Administrative expenses        (103,265)          (77,567)        (110,039)          (97,628)          (93,009)
Depreciation and amortization          (10,280)          (11,440)          (10,158)          (10,944)          (10,939)
Other operating expenses        (106,264)        (130,761)        (100,112)          (91,166)          (78,704)
Operating expenses        (309,617)        (320,928)        (318,892)        (290,636)        (268,187)
Operating income          631,184          724,664          388,848          392,769          305,473
Income from associates and joint ventures            (2,885)                   87                   42              1,858               (233)
Income from net monetary position        (570,232)        (539,015)        (353,444)        (242,819)        (220,293)
Income before income tax            58,067          185,736            35,446          151,808            84,947
Income tax          (23,916)        (112,022)          (12,470)          (56,670)          (26,692)
Income for the period            34,151            73,714            22,976            95,138            58,255
Owners of the parent            34,777            74,619            22,383            94,187            58,292
Non-controlling interests               (626)               (905)                 593                 951                 (37)
           
Other comprehensive Income (OCI)(1)          (68,619)          308,403          (22,642)            16,376            (2,499)
Total comprehensive income          (34,468)          382,117                 334          111,514            55,756
(1) Net of Income Tax.          
38 
 

 

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 
 

 

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

 

 

40 
 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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