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 August, 2023
Commission File Number: 001-12568
Banco BBVA Argentina S.A.
(Exact name of Registrant as specified in its charter)
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:
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):
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):
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:
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
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.
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Banco BBVA Argentina S.A. |
Date: |
August 9, 2023 |
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By: |
/s/ Carmen Morillo Arroyo |
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Name: |
Carmen Morillo Arroyo |
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Title: |
Chief Financial Officer |
BANCO BBVA ARGENTINA S.A.
CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE THREE-MONTH PERIOD ENDED
MARCH 31, 2023
Banco BBVA Argentina
S.A.
TABLE OF CONTENTS
Condensed Interim Financial Statements for the three-month
period ended March 31, 2023, comparatively presented.
Consolidated Condensed Statement of Financial Position
Consolidated Condensed Statement of Income
Consolidated Condensed Statement of Other Comprehensive
Income
Consolidated Condensed Statement of Changes in Shareholders’
Equity
Consolidated Condensed Statement of Cash Flows
Notes
Exhibits
Separate Condensed Statement of Financial Position
Separate Condensed Statement of Income
Separate Condensed Statement of Other Comprehensive Income
Separate Condensed Statement of Changes in Shareholders’
Equity
Separate Condensed Statement of Cash Flows
Notes
Exhibits
Reporting Summary
Independent auditors’ report on the review of the
consolidated condensed interim financial statements
Independent auditors’ report on the review of the
separate condensed interim financial statements
Supervisory Committee’s Report
CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION |
AS OF MARCH 31, 2023 AND DECEMBER 31, 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
(Translation of Financial statements originally issued in Spanish - See Note 53) |
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Notes and Exhibits |
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03.31.23 |
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12.31.22 |
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ASSETS |
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Cash and deposits in banks |
3 |
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374,120,128 |
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360,683,448 |
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Cash |
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120,057,652 |
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142,981,795 |
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Financial institutions and correspondents |
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254,062,476 |
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217,701,653 |
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B.C.R.A. |
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244,507,503 |
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196,493,761 |
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Other in the country and abroad |
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9,554,973 |
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21,207,892 |
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Debt securities at fair value through profit or loss |
4 |
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28,316,671 |
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31,066,037 |
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Derivative instruments |
5 |
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1,125,946 |
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2,761,133 |
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Repo transactions |
6 |
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141,191,902 |
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63,988,343 |
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Other financial assets |
7 |
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38,857,827 |
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39,858,824 |
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Loans and other financing |
8 |
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853,867,027 |
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872,938,069 |
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Non-financial Government sector |
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2,874 |
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1,703 |
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B.C.R.A. |
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- |
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10,997 |
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Other financial institutions |
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5,280,375 |
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5,151,440 |
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Non-financial Private Sector and Residents Abroad |
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848,583,778 |
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867,773,929 |
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Other debt securities |
9 |
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698,139,009 |
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785,299,090 |
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Financial assets pledged as collateral |
10 |
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53,124,669 |
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56,234,382 |
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Current income tax assets |
11. a) |
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76,492 |
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47,120 |
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Investments in equity instruments |
12 |
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1,214,554 |
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1,142,271 |
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Investments in associates |
13 |
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4,587,240 |
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4,220,976 |
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Property and equipment |
14 |
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116,156,174 |
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116,990,090 |
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Intangible assets |
15 |
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11,644,648 |
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11,707,678 |
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Deferred income tax assets |
11. c) |
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1,538,191 |
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1,850,530 |
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Other non-financial assets |
16 |
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35,546,933 |
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35,475,175 |
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Non-current assets held for sale |
17 |
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322,975 |
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273,994 |
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TOTAL ASSETS |
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2,359,830,386 |
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2,384,537,160 |
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Notes and exhibits are an integral part of these consolidated financial statements. |
CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION |
AS OF MARCH 31, 2023 AND DECEMBER 31, 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
(Translation of Financial statements originally issued in Spanish - See Note 53) |
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Notes and Exhibits |
|
03.31.23 |
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12.31.22 |
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LIABILITIES |
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Deposits |
18 and H |
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1,571,863,042 |
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1,599,343,585 |
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Non-financial Government sector |
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12,038,345 |
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11,783,852 |
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Financial Sector |
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1,029,176 |
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413,901 |
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Non-financial Private Sector and Residents Abroad |
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1,558,795,521 |
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1,587,145,832 |
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Derivative instruments |
5 |
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520,841 |
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407,000 |
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Other financial liabilities |
20 |
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132,710,507 |
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144,170,509 |
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Financing received from the BCRA and other financial institutions |
21 |
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18,455,986 |
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24,192,030 |
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Corporate bonds issued |
22 |
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- |
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232,731 |
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Current income tax liabilities |
11. b) |
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15,972,985 |
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8,823,253 |
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Provisions |
23 and J |
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9,903,999 |
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10,553,515 |
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Deferred income tax liabilities |
11.c) |
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5,670,815 |
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8,145,808 |
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Other non-financial liabilities |
24 |
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144,958,453 |
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143,270,108 |
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TOTAL LIABILITIES |
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1,900,056,628 |
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1,939,138,539 |
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EQUITY |
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Share capital |
26 |
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612,710 |
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612,710 |
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Non-capitalized contributions |
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94,443,032 |
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94,443,032 |
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Capital adjustments |
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68,298,147 |
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68,298,147 |
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Reserves |
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212,985,502 |
|
212,985,502 |
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Retained earnings |
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71,609,927 |
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13,091 |
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Other accumulated comprehensive income/(loss) |
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|
(9,772,389) |
|
(9,128,215) |
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Income for the period / year |
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|
15,028,818 |
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71,596,836 |
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Equity attributable to owners of the Parent |
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|
453,205,747 |
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438,821,103 |
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Equity attributable to non-controlling interests |
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|
6,568,011 |
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6,577,518 |
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TOTAL EQUITY |
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|
459,773,758 |
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445,398,621 |
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TOTAL LIABILITIES AND EQUITY |
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2,359,830,386 |
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2,384,537,160 |
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Notes and exhibits are an integral part of these consolidated financial statements. |
CONSOLIDATED CONDENSED STATEMENT OF INCOME |
FOR THE THREE-MONTH INTERIM PERIODS ENDED MARCH 31, 2023 AND 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
(Translation of Financial statements originally issued in Spanish - See Note 53) |
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Notes and Exhibits |
|
03.31.23 |
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03.31.22 |
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Interest income |
27 |
|
249,198,879 |
|
141,005,063 |
Interest expense |
|
28 |
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(118,009,530) |
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(60,862,064) |
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Net interest income |
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|
131,189,349 |
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80,142,999 |
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Commission income |
|
29 |
|
21,978,099 |
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26,464,930 |
Commission expenses |
|
30 |
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(10,651,359) |
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(12,911,306) |
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Net commission income |
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11,326,740 |
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13,553,624 |
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Net income from measurement of financial instruments at fair value through profit or loss |
31 |
|
6,977,892 |
|
8,346,762 |
Net income (loss) from write-down of assets at amortized cost and at fair value through OCI |
32 |
|
38,326 |
|
(69,962) |
Foreing exchange and gold gains/(losses) |
|
33 |
|
1,054,747 |
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3,496,551 |
Other operating income |
|
34 |
|
5,492,036 |
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6,894,482 |
Loan loss allowance |
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(8,177,833) |
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(4,635,996) |
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Net operating income |
|
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|
147,901,257 |
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107,728,460 |
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Personnel benefits |
|
35 |
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(22,052,654) |
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(18,518,539) |
Administrative expenses |
|
36 |
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(23,979,559) |
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(19,438,240) |
Asset depreciation and impairment |
|
37 |
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(2,820,321) |
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(3,339,332) |
Other operating expenses |
|
38 |
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(20,291,557) |
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(15,841,787) |
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Operating income |
|
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78,757,166 |
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50,590,562 |
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Loss from associates and joint ventures |
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(60,163) |
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(545,783) |
Loss on net monetary position |
|
2.1.5. |
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(56,795,954) |
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(38,263,020) |
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Income before income tax |
|
|
|
21,901,049 |
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11,781,759 |
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Income Tax |
|
|
11. d) |
|
(6,881,728) |
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(3,539,972) |
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|
Net income for the period |
|
|
|
15,019,321 |
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8,241,787 |
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Net income for the period attributable to: |
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Owners of the Parent |
|
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|
15,028,818 |
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8,553,149 |
Non-controlling interests |
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|
|
(9,497) |
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(311,362) |
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|
|
|
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|
|
Notes and exhibits are an integral part of these consolidated financial statements. |
CONSOLIDATED CONDENSED STATEMENT OF INCOME |
FOR THE THREE-MONTH INTERIM PERIODS ENDED MARCH 31, 2023 AND 2022 |
EARNINGS PER SHARE |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
(Translation of Financial statements originally issued in Spanish - See Note 53) |
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Accounts |
|
03.31.23 |
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03.31.22 |
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Numerator: |
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Net income attributable to owners of the Parent |
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|
15,028,818 |
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8,553,149 |
Net income attributable to owners of the Parent adjusted to reflect the effect of dilution |
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|
15,028,818 |
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8,553,149 |
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Denominator: |
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Weighted average of outstanding common shares for the period |
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|
612,710,079 |
|
612,710,079 |
Weighted average of outstanding common shares for the period adjusted to reflect the effect of dilution |
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|
612,710,079 |
|
612,710,079 |
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Basic earnings per share (stated in thousands of pesos) |
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|
24.5284 |
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13.9595 |
Diluted earnings per share (stated in thousands of pesos) (1) |
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|
24.5284 |
|
13.9595 |
| (1) | As Banco BBVA Argentina S.A. has not issued financial instruments with dilution
effects on earnings per share, basic earnings and diluted earnings per share are equal. |
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME |
FOR THE THREE-MONTH INTERIM PERIODS ENDED MARCH 31, 2023 AND 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
(Translation of Financial statements originally issued in Spanish - See Note 53) |
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Note |
|
03.31.23 |
|
03.31.22 |
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Net income for the period |
|
|
15,019,321 |
|
8,241,787 |
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Other comprehesive income components not to be reclassified to income/(loss) for the period: |
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Profit or losses from financial instruments at fair value through OCI |
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Profit or losses from financial instruments at fair value through OCI |
|
|
(2,165,725) |
|
3,837,673 |
Reclassification adjustment for the period |
|
|
2,133,109 |
|
69,961 |
Income Tax |
11.d) |
|
(602,653) |
|
(1,185,522) |
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|
|
|
|
|
|
|
|
(635,269) |
|
2,722,112 |
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Other comprehesive income components not to be reclassified to income/(loss) for the period: |
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Income or loss on equity instruments at fair value through OCI (IFRS 9, paragraph 5.7.5) |
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Loss for the period from equity instruments at fair value through OCI |
|
|
(8,915) |
|
(16,219) |
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|
|
|
|
|
|
(8,915) |
|
(16,219) |
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|
|
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|
Total Other Comprehensive Income/(loss) for the period |
|
|
(644,184) |
|
2,705,893 |
|
|
|
|
|
|
Total Comprehensive Income |
|
|
14,375,137 |
|
10,947,680 |
|
|
|
|
|
|
|
|
|
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|
|
Total Comprehensive Income: |
|
|
|
|
|
Attributable to owners of the Parent |
|
|
14,384,644 |
|
11,259,042 |
Attributable to non-controlling interests |
|
|
(9,507) |
|
(311,362) |
|
|
|
|
|
|
Notes and exhibits are an integral part of these consolidated financial statements. |
|
|
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|
|
CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY |
FOR THE THREE-MONTH INTERIM PERIOD ENDED MARCH 31, 2023 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
(Translation
of Financial statements originally issued in Spanish - See Note 53) |
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2023 |
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Share |
|
Non-capitalized |
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|
Other
Comprehensive |
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|
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|
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Capital |
|
contributions |
|
|
|
Income |
|
Reserves |
|
|
|
|
|
|
|
|
|
Outstanding
shares |
|
Share
premium |
|
|
|
Loss
on financial instruments at fair value through OCI |
Other |
|
|
|
|
|
Total
equity attributable to controlling interests |
|
Total
equity attributable to non-controlling interests |
|
Total |
|
|
|
|
|
|
|
|
|
Retained
earnings |
|
|
|
|
|
|
|
Adjustments
to equity |
|
|
|
|
|
|
|
Transactions |
|
|
|
|
|
Legal |
Other |
|
|
|
|
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Restated
balances at the beginning of the year |
612,710 |
|
94,443,032 |
|
68,298,147 |
|
(9,128,215) |
- |
|
89,961,334 |
123,024,168 |
71,609,927 |
|
438,821,103 |
|
6,577,518 |
|
445,398,621 |
|
|
|
|
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|
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|
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|
|
Total
comprehensive income for the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Net income for the period |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
15,028,818 |
|
15,028,818 |
|
(9,497) |
|
15,019,321 |
-
Other comprehensive income/(loss) for the period |
- |
|
- |
|
- |
|
(644,174) |
- |
|
- |
- |
- |
|
(644,174) |
|
(10) |
|
(644,184) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances
at fiscal period end |
|
612,710 |
|
94,443,032 |
|
68,298,147 |
|
(9,772,389) |
- |
|
89,961,334 |
123,024,168 |
86,638,745 |
|
453,205,747 |
|
6,568,011 |
|
459,773,758 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes and exhibits are an integral part of these consolidated financial statements. |
CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY |
FOR THE THREE-MONTH INTERIM PERIOD ENDED MARCH 31, 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
(Translation of Financial statements originally issued in Spanish - See Note 53) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
|
Share |
|
Non-capitalized |
|
|
|
Other Comprehensive |
|
|
|
|
|
|
|
|
|
Capital |
|
contributions |
|
|
|
Income |
|
Reserves |
|
|
|
|
|
|
|
|
|
Outstanding shares |
|
Share premium |
|
|
|
Losses on financial instruments at fair value through OCI |
Other |
|
|
|
|
|
Total equity attributable to controlling interests |
|
Total equity attributable to non-controlling interests |
|
Total |
|
|
|
|
|
|
|
|
|
Retained earnings |
|
|
|
|
|
|
|
Adjustments to equity |
|
|
|
|
|
|
|
Transactions |
|
|
|
|
|
Legal |
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restated balances at the beginning of the year |
612,710 |
|
94,443,032 |
|
68,298,147 |
|
1,785,064 |
(132,710) |
|
80,632,468 |
85,709,448 |
46,644,337 |
|
377,992,496 |
|
7,603,381 |
|
385,595,877 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of the implementation of the financial reporting framework established by the BCRA - IFRS 9, paragraph 5.5 for Related Companies |
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
52,084 |
|
52,084 |
|
45,734 |
|
97,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted balance at the beginning of the year |
612,710 |
|
94,443,032 |
|
68,298,147 |
|
1,785,064 |
(132,710) |
|
80,632,468 |
85,709,448 |
46,696,421 |
|
378,044,580 |
|
7,649,115 |
|
385,693,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Net income/(loss) for the period |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
8,553,149 |
|
8,553,149 |
|
(311,362) |
|
8,241,787 |
- Other comprehensive income for the period |
- |
|
- |
|
- |
|
2,705,893 |
- |
|
- |
- |
- |
|
2,705,893 |
|
- |
|
2,705,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at fiscal period end |
|
612,710 |
|
94,443,032 |
|
68,298,147 |
|
4,490,957 |
(132,710) |
|
80,632,468 |
85,709,448 |
55,249,570 |
|
389,303,622 |
|
7,337,753 |
|
396,641,375 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes and exhibits are an integral part of these consolidated financial statements. |
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS |
FOR THE THREE-MONTH INTERIM PERIODS ENDED MARCH 31, 2023 AND 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
(Translation of Financial statements originally issued in Spanish - See Note 53) |
Accounts |
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
Income before income tax |
|
21,901,049 |
|
11,781,759 |
|
|
|
|
|
Adjustment for total monetary income for the period |
|
56,795,954 |
|
38,263,020 |
|
|
|
|
|
Adjustments to obtain cash flows from operating activities: |
|
5,837,849 |
|
5,407,968 |
Depreciation and amortization |
|
2,820,321 |
|
3,339,332 |
Loan loss allowance |
|
8,177,833 |
|
4,635,996 |
Effect of foreign exhange changes on cash and cash equivalents |
|
(9,211,763) |
|
(853,812) |
Loss for the sale of Prisma Medios de Pagos S.A. |
|
- |
|
(5,342,456) |
Other adjustments |
|
4,051,458 |
|
3,628,908 |
|
|
|
|
|
Net increases from operating assets: |
|
(324,767,698) |
|
(314,946,776) |
Debt securities at fair value through profit or loss |
|
(3,799,478) |
|
(20,649,859) |
Derivative instruments |
|
1,309,273 |
|
3,878,277 |
Repo transactions |
|
(95,967,154) |
|
162,863,053 |
Loans and other financing |
|
(151,581,190) |
|
(59,885,930) |
Non-financial Government sector |
|
(1,740) |
|
443 |
Other financial institutions |
|
(1,348,960) |
|
(3,025,811) |
Non-financial Private Sector and Residents Abroad |
|
(150,230,490) |
|
(56,860,562) |
Other debt securities |
|
(52,915,521) |
|
(383,134,694) |
Financial assets pledged as collateral |
|
(8,528,599) |
|
(6,090,912) |
Investments in equity instruments |
|
(388,580) |
|
(141,518) |
Other assets |
|
(12,896,449) |
|
(11,785,193) |
|
|
|
|
|
Net increases from operating liabilities: |
|
326,325,431 |
|
228,750,486 |
Deposits |
|
271,747,312 |
|
190,931,780 |
Non-financial Government sector |
|
2,302,753 |
|
8,961,039 |
Financial Sector |
|
708,617 |
|
225,359 |
Non-financial Private Sector and Residents Abroad |
|
268,735,942 |
|
181,745,382 |
Liabilities at fair value through profit or loss |
|
4,639 |
|
41 |
Derivative instruments |
|
192,365 |
|
85,500 |
Other liabilities |
|
54,381,115 |
|
37,733,165 |
|
|
|
|
|
Income tax paid |
|
(204,950) |
|
(444,582) |
|
|
|
|
|
Net cash generated by / (used in) operating activities |
|
85,887,635 |
|
(31,188,125) |
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS |
FOR THE THREE-MONTH INTERIM PERIODS ENDED MARCH 31, 2023 AND 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
(Translation of Financial statements originally issued in Spanish - See Note 53) |
|
|
|
|
|
Accounts |
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
Payments: |
|
(2,286,210) |
|
(2,622,559) |
Purchase of property and equipment, intangible assets and other assets |
|
(1,859,784) |
|
(2,299,858) |
Other payments related to investing activities |
|
(426,426) |
|
(322,701) |
|
|
|
|
|
Total cash flows used in investing activities |
|
(2,286,210) |
|
(2,622,559) |
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
Payments: |
|
(6,086,764) |
|
(3,846,762) |
Non-subordinated corporate bonds |
|
(221,028) |
|
(226,483) |
Argentine Central Bank (BCRA) |
|
(29,174) |
|
- |
Financing from local financial institutions |
|
(5,816,453) |
|
(2,915,052) |
Leases |
|
(20,109) |
|
(705,227) |
|
|
|
|
|
Collections: |
|
109,579 |
|
11,251 |
Argentine Central Bank (BCRA) |
|
- |
|
11,251 |
Other collections related to financing activities |
|
109,579 |
|
- |
|
|
|
|
|
Total cash flows used in financing activities |
|
(5,977,185) |
|
(3,835,511) |
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
9,211,763 |
|
853,812 |
Effect of net monetary income/(loss) of cash and cash equivalents |
|
(73,399,323) |
|
(74,474,971) |
|
|
|
|
|
Total changes in cash flows |
|
13,436,680 |
|
(111,267,354) |
Restated cash and cash equivalents at the beginning of the year |
|
360,683,448 |
|
517,752,861 |
Cash and cash equivalents at fiscal period-end |
|
374,120,128 |
|
406,485,507 |
|
|
|
|
|
Notes and exhibits are an integral part of these consolidated financial statements. |
|
|
|
|
NOTES TO THE
CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF MARCH 31,
2023
(Amounts stated
in thousands of Argentine pesos in constant currency – Note 2.1.5.)
(Translation
of Financial statements originally issued in Spanish - See Note 53)
| 1.1. | Information on Banco BBVA Argentina S.A. |
Banco BBVA Argentina S.A. (hereinafter, either “BBVA
Argentina”, the “Entity” or the “Bank”) is a corporation (“sociedad anónima”)
incorporated under the laws of Argentina, operating as a universal bank with a network of 243 national branches.
Since December 1996, BBVA Argentina is part of the
global strategy of Banco Bilbao Vizcaya Argentaria S.A. (hereinafter, either “BBVA” or the “Parent”), which directly
and indirectly controls the Entity, by holding 66.55% of the share capital as of March 31, 2023.
These consolidated condensed interim financial statements
include the Entity and its subsidiaries (collectively referred to as the “Group”). Basis of consolidation is described in
Note 2.2.
Part of the Entity's capital stock is publicly traded
and has been registered with the Buenos Aires Stock Exchange, the New York Stock Exchange, and the Madrid Stock Exchange.
| 1.2. | Evolution of the macroeconomic situation
and the financial and capital systems |
The Entity continues to operate in a complex economic
context, signaled by the persistence of high inflation levels, which have reached 104.3% YoY. This scenario is accompanied by volatile
financial variables, including, among others, a country risk indicator which has increased even after the renegotiation of the sovereign
debt with private creditors and the IMF, as well as the imputed exchange rates impacting the outstanding public debt denominated in foreign
currency.
Then, among others resolutions, changes to the tax
regime were made, including changes in the income tax, foreign trade withholdings and new specific regulations were also established enabling
the access to the foreign exchange market, both for individuals and legal entities.
Simultaneously, the public debt restructuring process
continued both under Argentine and foreign laws, including various voluntary swaps and agreements related to the payables to the International
Monetary Fund and the Paris Club, among others.
In particular, during the month of March 2023, it
was established that jurisdictions, entities and funds related to the National Public Administration proceed to dispose of their holdings
of certain national debt instruments denominated and payable in dollars under local legislation. At the same time, it was established
that certain holdings under foreign legislation held by such entities were to be exchanged for other instruments of the National Treasury.
Finally, the issuance of the corresponding instruments payable in pesos was authorized up to the amount necessary for such exchange.
Particularly, as regards the U.S. dollar price, since
the end of 2019 the gap between the official U.S. dollar price -mainly used for foreign trade- and the alternative values arising from
stock exchange transactions and also with respect to the non-official value significantly widened, reaching about 105% as of the date
of issuance of the accompanying financial statements.
In addition, the national and international macroeconomic
context generates certain degree of uncertainty regarding its future progress considering the residual effects of the pandemic declared
in connection with the coronavirus (COVID-19) outbreak which has significantly affected the national and international economic activity
and of the armed conflict between Russia and Ukraine in the economic recovery level globally.
In view of the above, the Entity's Management permanently
monitors the evolution of the abovementioned situations in the international and local markets, in order to determine the possible actions
to be taken and identify possible impacts on its equity and financial position, which may require disclosure in the financial statements
of future periods.
| 2. | Basis for the preparation of these financial statements and applicable accounting standards |
| 2.1.1. | Applicable Accounting Standards |
These consolidated condensed interim financial statements
of the Bank were prepared in accordance with the financial reporting framework set forth by the BCRA (Communication “A” 6114
of the BCRA, as supplemented). Except for the exceptions established by the BCRA, which are explained in the following paragraph, such
framework is based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB)
and adopted by the Argentine Federation of Professionals Councils in Economic Sciences (FACPCE, for its acronym in Spanish). The abovementioned
international standards include the IFRS, the International Accounting Standards (IAS) and the interpretations developed by the IFRS Interpretations
Committee (IFRIC) or former IFRIC (SIC).
Out of the exceptions set forth by the BCRA to the application
of current IFRS, the following affect the preparation of these consolidated condensed interim financial statements:
| a) | Within the framework of the convergence process to IFRS established by Communication “A” 6114,
as amended and supplemented, the BCRA provided that for fiscal years starting on or after January 1, 2020, financial institutions defined
as “Group A” according to BCRA regulations, as such is the case of the Entity, are required to start to apply paragraph 5.5
“Impairment” of IFRS 9 “Financial Instruments” (paragraphs B5.5.1 through B5.5.55) except for exposures to the
public sector, considering the exclusion set forth by Communication “A” 6847. |
Had the abovementioned paragraph 5.5. “Impairment”
been applied in full, according to a global estimate made by the Entity, as of March 31, 2023 and December 31, 2022, its shareholders’
equity would have been reduced by 4,865,604 and 5,456,725, respectively.
| b) | In March 2022, the transfer of the equity instruments corresponding to the remaining interest in Prisma
Medios de Pago S.A. was made, which instruments were measured at fair value as set forth in Memorandum dated April 29, 2019 and March
22, 2021 received by the BCRA, and the income (loss) from their sale was recorded in the quarter ended March 31, 2022. Had the IFRS been
applied in order to determine the fair value above mentioned, the income (loss) for the three-month period ended March 31, 2022 would
have changed. However, this situation does not generate differences as regards the shareholders’ equity value as of December 31,
2022. |
Except for what was mentioned in the previous paragraphs,
the accounting policies applied by the Entity comply with the IFRS that have been currently approved and are applicable in the preparation
of these consolidated condensed interim financial statements in accordance with the IFRS as adopted by the BCRA as per Communication “A”
7642. In general, the BCRA does not allow the early application of any IFRS, unless otherwise specified.
These financial statements have been approved by the
Board of Directors of Banco BBVA Argentina S.A. on May 23, 2023.
| 2.1.2. | Figures stated in thousands of pesos |
These consolidated condensed interim financial statements
expose figures stated in thousands of Argentine pesos in terms of purchasing power as of March 31, 2023 and are rounded to the nearest
amount in thousands of pesos.
| 2.1.3. | Presentation of Statement of Financial Position
|
The Entity presents its Statement of Financial Position
in order of liquidity, according to the model set forth in Communication “A” 6324 of the BCRA.
Financial assets and financial liabilities are generally
reported in gross figures in the Statement of Financial Position. They are offset and reported on a net basis only if there is a legal
and unconditional right to offset them and Management has the intention to settle them on a net basis or to realize assets and settle
liabilities simultaneously.
These consolidated condensed interim financial statements
were prepared on the basis of historical amounts, except for certain species which were valued at Fair value through Other Comprehensive
Income (OCI) or at Fair Value through Profit or Loss. In addition, in the case of derivatives, both assets and liabilities were valued
at Fair Value through profit or loss.
| 2.1.4. | Comparative information |
The consolidated statement of financial position as of
March 31, 2023 is comparatively presented with data as of prior year-end, while the Consolidated Condensed Statements of Income, Other
Comprehensive Income, Changes in Shareholders' Equity, and Cash Flows, and their related notes for the three-month period ended March
31, 2023, are comparatively presented with the balances of the same period of the previous year.
The figures of comparative information have been restated
in order to consider the changes in the general purchasing power of the currency and, as a result, are stated in the measuring unit current
as of the end of the reporting period (see “Measuring unit” below).
These consolidated condensed interim financial statements
as of March 31, 2023 have been restated to be expressed in the purchasing power currency as of that date, as set forth in IAS 29 and considering,
in addition, the particular rules issued by the BCRA in Communications “A” 6651, 6849, as amended and supplemented, which
established that such method should be applied to financial statements for fiscal years starting on, and after January 1, 2020 and defined
December 31, 2018 as transition date.
IFRS require that the financial statements of an entity
whose functional currency is that of a hyperinflationary economy be restated in constant currency. In order to achieve uniformity in the
identification of such an economic environment, IAS 29 "Financial Reporting in Hyperinflationary Economies" establishes (i)
certain non-exclusive qualitative indicators consisting of analyzing the behavior of the population, prices, interest rates and salaries
in view of the evolution of price indexes and the loss of purchasing power of the currency, and (ii) as a quantitative characteristic,
which is the condition most commonly considered in practice, to verify whether the cumulative inflation rate in three years approaches
or exceeds 100%. Due to several macroeconomic factors, three-year inflation was above this figure, while the national government's targets
and other available projections indicate that this trend will not be reversed in the short term.
Such restatement should be made as if the economy has
always been hyperinflationary, using a general price index that reflects the changes in the purchasing power of currency. In order to
make such restatements, a series of indexes prepared and published on a monthly basis by the Argentine Federation of Professional Councils
of Economic Sciences (“FACPCE”), which combines the consumer price index (CPI) as from January 2017 (base month: December
2016) with the domestic wholesale price index (IPIM, as per its Spanish acronym) published by INDEC until such date, computing for November
and December 2015, for which the INDEC did not published any information on the variation of the IPIIM, the variation of the CPI in the
City of Buenos Aires.
Considering the index referred to above, inflation for
the three-month periods ended March 31, 2023 and 2022 was 21.73% and 16.07%, respectively, and for the fiscal year ended December 31,
2022, was 94.79%.
Below is a description of the main impacts of applying
IAS 29 and the restatement process of financial statements set forth by Communication “A” 6849, as supplemented, of the BCRA:
| a) | Description of the main aspects of the restatement
process of the statement of financial position: |
| i. | Monetary items (those with a fixed nominal
value in local currency) are not restated, as they are already expressed in the measuring unit current as of the end of the reporting
period. In an inflationary period, holding monetary assets generates a loss of purchasing power and holding monetary liabilities generates
a gain in purchasing power, provided that such items are not subject to an adjustment mechanism that may offset these effects to some
extent. Net monetary gain or loss is included in income/loss for the reporting period. |
| ii. | Assets and liabilities subject to adjustments
pursuant to specific agreements are adjusted according to such agreements. |
| iii. | Non-monetary items measured at their current
values at the end of the reporting period are not restated for their presentation in the statement of financial position, but the adjustment
process must be completed in order to determine in terms of constant
measuring unit, the gain or loss generated for holding those non-monetary items. |
| iv. | Non-monetary items measured at historical cost
or at a value current as of a date prior to the end of the reporting period are restated at indexes that reflect the variation occurred
in the general price index as from the date of acquisition or restatement until the closing date, and then the restated amounts of said
assets are compared with the relevant recoverable values. Charges to income or loss for the period of depreciation of property and equipment
and amortization of intangible assets, as well as any other consumption of non-monetary assets are determined based on the new restated
amounts. |
| v. | The restatement of non-monetary assets in terms
of a measuring unit current at the end of the reporting period without an equivalent adjustment for tax purposes results in a taxable
temporary difference and the recognition of deferred tax liabilities, whose balancing entry is recognized in income or loss for the period.
|
| b) | Description of the main aspects of the restatement
process of the statements of income and other comprehensive income: |
| i. | Expenses and income are restated as from the
date of their booking, except those income or loss items that reflect or include in their determination the consumption of assets in purchasing
power currency of a date prior to the booking of the consumption, which are restated taking as basis the date of origination of the asset
with which the item is related; and also except for income or loss arising from comparing two measurements expressed in purchasing power
currency of different dates, for which it is necessary to identify the amounts compared, restate them separately, and make the comparison
again, but with the amounts already restated. |
| ii. | Gain or loss on net monetary position will
be classified according to the item that originated it, and is presented in a separate line reflecting the effect of inflation on monetary
items. |
| c) | Description of the main aspects of the restatement
process of the statement of changes in shareholders’ equity: |
| i. | As of the transition date (December 31, 2018),
the Entity has applied the following procedures: |
| a) | Equity items, except those stated below, are restated as from the date on which they were subscribed for
or paid-in, as set forth in Communication “A” 6849 for each particular item. |
| b) | Reserves, including the reserve for first time application of IFRS, were maintained at their nominal value
as of the transition date (non-restated legal amount). |
| c) | Restated retained earnings are determined according to the difference between restated net assets as of
the transition date and the rest of the components of initial equity restated as described above. |
| d) | Balances of other accumulated comprehensive income were restated as of the transition date. |
| ii. | After the restatement as of the transition
date stated in (i) above, all the shareholders’ equity components are restated by applying the general price index from the beginning
of the fiscal year and each variation of those components is restated from the date of contribution or from the moment such variation
occurred by other means, restating the balances of other accumulated comprehensive income
according to the items that give rise to it. |
| d) | Description of the main aspects of the restatement
process of the statement of cash flows: |
| i. | All items are restated in terms of the measuring
unit current as of the end of the reporting period. |
| ii. | Monetary gain or loss on the components of
cash and cash equivalents are disclosed in the statement of cash flows after operating, investing and financing activities, in a separate
line and independent from them, under “Gain/loss on net monetary position of cash and cash equivalents”. |
| 2.2. | Basis of consolidation |
The consolidated condensed interim financial statements
comprise the Entity’s and its subsidiaries’ financial statements (the “Group”) as of March 31, 2023 and December
31, 2022.
Subsidiaries are all entities controlled by the Bank.
The Bank controls an entity when it is exposed to, or has rights to, variable returns from its continued involvement with the entity and
has the ability to manage the operating and financial policies of that entity, in order to affect those returns.
This is generally observed in the case of an ownership
interest representing more than 50% of its shares entitled to vote.
However, under particular circumstances, the Entity may
exercise control with an ownership interest below 50% or may not exercise control even with an ownership interest above 50% in the shares
of an investee.
When assessing if an Entity has power over an investee
and therefore, whether it controls the variability of its returns, the Entity considers all the relevant events and circumstances, including:
| - | The purpose and design of the investee. |
| - | The relevant activities, the decision-making
process on these activities and where the Entity and its subsidiaries can manage those activities. |
| - | Contractual agreements such as call rights,
put rights and settlement rights. |
| - | If the Entity and its subsidiaries are exposed
to, or entitled to, variable yields arising from their interest in the investee, and are empowered to affect their variability. |
Subsidiaries are fully consolidated as from the date
on which effective control thereof is transferred to the Entity and they are no longer consolidated as from the date on which such control
ceases. These consolidated condensed interim financial statements include the Entity’s and its subsidiaries’ assets, liabilities,
profit or loss and each component of other comprehensive income. Transactions among consolidated entities are fully deleted.
Any change in the ownership interest in a subsidiary,
without loss of control is booked as an equity transaction. Conversely, if the Entity loses control over a subsidiary, it derecognizes
the related assets (including goodwill), liabilities, non-controlling interest and other equity components, while any resulting gain
or loss is recognized in profit or loss, and any retained investment is recognized at fair value at the date of loss of control.
The financial statements of subsidiaries have been prepared
as of the same date and for the same accounting periods as those of the Entity, using the related accounting policies consistently with
those applied by the Entity. If necessary, the relevant adjustments are made to the financial statements of subsidiaries so that the accounting
policies used by the Group are uniform.
The Entity and its subsidiaries consider the Argentine
peso as their functional and presentation currency.
Besides, non-controlling interests represent the portion
of income or loss and shareholders’ equity that does not belong, either directly or indirectly, to the Entity. Non-controlling interests
are exposed in these financial statements in a separate line in the Statements of Financial Position, of Income, Other Comprehensive Income
and Changes in Shareholders’ Equity.
As of March 31, 2023 and December 31, 2022, the Entity
has consolidated its financial statements with the financial statements of the following companies:
Subsidiaries |
Registered Office |
Province |
Country |
Main Business Activity |
Volkswagen Financial Services Cía. Financiera S.A. |
Av. Córdoba 111 |
City of Buenos Aires |
Argentina |
Financing |
PSA Finance Arg. Cía. Financiera S.A. |
Carlos María Della Paolera 265, piso 22 |
City of Buenos Aires |
Argentina |
Financing |
Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A.(under liquidation proceedings) (1) |
Av. Córdoba 111, piso 22 |
City of Buenos Aires |
Argentina |
Brokerage Retirement and Pension Funds |
BBVA Asset Management Argentina S.A.U. Sociedad Gerente de Fondos Comunes de Inversión |
Av. Córdoba 111, piso 30 |
City of Buenos Aires |
Argentina |
Mutual Funds Management |
| (1) | Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (undergoing liquidation proceedings)
“Consolidar A.F.J.P. S.A. (undergoing liquidation proceedings)”: a corporation incorporated under the laws of Argentina undergoing
liquidation proceedings. On December 4, 2008, Law No. 26425 was enacted, providing for the elimination and replacement of the capitalization
regime that was part of the Integrated Retirement and Pension System, with a single pay-as-you go system named the Argentine Integrated
Retirement and Pensions System (SIPA). Consequently, Consolidar A.F.J.P. S.A. ceased to manage the resources that were part of the individual
capitalization accounts of affiliates and beneficiaries of the capitalization regime of the Integrated Retirement and Pension System,
which were transferred to the Guarantee Fund for the Sustainability of the Argentine Retirement and Pension Regime as they were already
invested, and the Argentine Social Security Office (ANSES) is now the sole and exclusive owner of those assets and rights. Likewise, on
October 29, 2009, the ANSES issued Resolution No. 290/2009, whereby retirement and pension fund managers interested in reconverting their
corporate purpose to manage the funds for voluntary contributions and deposits held by participants in their capitalization accounts had
30 business days to express their intention to that end. On December 28, 2009, based on the foregoing and taking into consideration that
it is impossible for Consolidar A.F.J.P. S.A. to comply with the corporate purpose for which it was incorporated, it was resolved, at
a Unanimous General and Extraordinary Shareholders’ Meeting to approve the dissolution and subsequent liquidation of that company
effective as of December 31, 2009. |
As of March 31, 2023 and December 31, 2022, the Entity’s
interest in consolidated companies is as follows:
Subsidiaries |
Shares |
Interest held by the Company |
Non-controlling Interest |
Type |
Number |
Total share capital |
Votes |
Total share capital |
Votes |
Volkswagen Financial Services Cía. Financiera S.A. |
Common |
897,000,000 |
51.00% |
51.00% |
49.00% |
49.00% |
PSA Finance Arg. Cía. Financiera S.A. (1) |
Common |
52,178 |
50.00% |
50.00% |
50.00% |
50.00% |
Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (under liquidation proceedings) |
Common |
115,738,503 |
53.89% |
53.89% |
46.11% |
46.11% |
BBVA Asset Management Argentina S.A.U. Sociedad Gerente de Fondos Comunes de Inversión |
Common |
242,524 |
100.00% |
100.00% |
0.00% |
0.00% |
(1) According to the Shareholders' Agreement, the Bank
controls the entity because it is exposed to, or entitled to, variable yields due to its continued involvement in the entity and has the
capacity to manage the activities relevant to affect those returns, such as financial and risk management activities, among others.
The Board of Directors of Banco BBVA Argentina S.A. considers
that there are no other companies or structured entities that should be included in the consolidated condensed interim financial statements
as of March 31, 2023.
Trusts
The Group acts as a trustee for financial, management
and guarantee trusts (see Note 49). Upon determining if the Group controls the trusts, the Group has analyzed the existence of control,
under the terms of IFRS 10. Consequently, how power is configured on the relevant activities of the vehicle, the impact of changes in
returns over those Structured Entities on the Group, and the relation of both have been evaluated on a case-by-case basis. In all cases,
it has been concluded that the Group acts as an agent and therefore does not consolidate those trusts.
Mutual funds
The Group acts as fund manager in various mutual funds
(see Note 50). To determine whether the Group controls a mutual fund, the aggregate economic interest of the Group in such mutual fund
(comprising any carried interests and expected management fees) is usually assessed, and it is considered that investors have no right
to remove the fund manager without cause.
| 2.3. | Summary of significant accounting policies
|
These consolidated condensed interim financial statements
as of March 31, 2023 have been prepared in accordance with the financial reporting framework set forth by the BCRA mentioned in Note 2.1.1
“Applied accounting policies”, which in particular for consolidated condensed interim financial statements is based on IAS
34 “Interim Financial Reporting”.
In preparing these consolidated condensed interim financial
statements, in addition to what is explained in Notes 2.1.5 “Measuring Unit" and 2.5 "Regulatory changes made this year",
the Entity has applied the basis of presentation and consolidation, significant accounting policies and judgments, estimates and significant
accounting assumptions described in the consolidated financial statements for the fiscal year ended December 31, 2022, already issued,
except as indicated in Note 2.5.
These consolidated condensed interim financial statements
include all the information necessary for an appropriate understanding by the users thereof, of the basis for preparation and presentation
used, as well as the relevant events and transactions occurred after the issuance of the latest annual consolidated financial statements
for the fiscal year ended December 31, 2022. However, these consolidated condensed interim financial statements do not include all the
information or all the disclosures required for annual consolidated financial statements prepared in accordance with IAS 1 “Presentation
of Financial Statements”. Therefore, these consolidated condensed interim financial statements should be read in conjunction with
the annual consolidated financial statements for the fiscal year ended December 31, 2022, already issued.
| 2.4. | Accounting judgments, estimates and assumptions |
The preparation of these condensed consolidated financial
statements in accordance with IFRS requires the preparation and consideration, by the Entity’s and its subsidiaries’ Management,
of significant accounting judgments, estimates and assumptions that impact in the reported balances of assets and liabilities, income
and expenses, as well as in the determination and disclosure of contingent assets and liabilities as of the end of the reporting period.
The entries made are based on the best estimate of the
probability of occurrence of different future events. In this sense, the uncertainties associated with the estimates and assumptions adopted
may result in the future in final results that would differ from such estimates and require significant adjustments to the reported balances
of the assets and liabilities affected. Accounting judgments, estimates and assumptions are reviewed on an ongoing basis and their effects
are recognized prospectively.
The most significant accounting judgments, estimates
and assumptions included in these financial statements were the same as those described in Notes 2.4.1, 2.4.2 and 2.4.3 to the consolidated
financial statements as of December 31, 2022.
2.5. Regulatory changes introduced
during this fiscal year
In the fiscal year beginning January 1, 2023, the following
amendments to IFRS became effective, which have not had a significant impact on these consolidated condensed interim financial statements
taken as a whole:
Amendment to IAS 1 and IFRS Practice Statement 2 -
Disclosures of accounting policies
These amendments require that an entity disclose its
material accounting policies instead of its significant accounting policies. In addition, within the amendments some explanations were
included on how an entity may identify a material accounting policy together with some examples of when an accounting policy may be material.
To that effect, a guidance with explanations and examples called “the 4-step materiality process” described in Practice Statement
2 has been developed.
This amendment to IFRS did not have a significant impact
on the disclosures in these consolidated condensed interim financial statements, nor is it expected to have a significant impact on the
disclosures in the annual consolidated financial statements.
Amendment to IAS 8 “Accounting Policies, Changes
in Accounting Estimates and Errors” - Definition of accounting estimates
These amendments clarify the distinction between changes
in accounting estimates and changes in accounting policies and correction of errors. They also clarify how an entity uses valuation techniques
and input data to develop accounting estimates. The amendment to this standard clarifies that the effect on an accounting estimate due
to a change in an input or a change in a valuation technique are changes to accounting estimates if they do not result from the correction
of prior period errors. The preceding definition of changes in accounting estimates specified that these changes may result from new information
or new developments. Therefore, these changes are not corrections of errors. This standard will be effective as from January 1, 2023.
The amendment to this IAS will be applicable to the extent
that the Entity makes a change in any accounting estimate, but it is estimated that it would not have a significant impact on the Financial
Statements.
Amendment to IAS 12 “Income Tax” - Deferred
tax related to assets and liabilities arising from a single transaction
The IASB issued amendments that narrow the scope of the
initial recognition exception under IAS 12, so that it is no longer applicable to transactions that give rise to equal taxable and deductible
temporary differences. The Amendments also clarify that where payments that settle a liability are deductible for tax purposes, it is
a matter of judgement (having considered the applicable tax law) whether such deductions are attributable for tax purposes to the liability
recognized in the financial statements (and interest expense) or to the related asset component (and interest expense). This judgement
is important in determining whether any temporary differences exist on initial recognition of assets and liabilities.
This amendment did not have a significant impact on the
financial statements.
2.6. New pronouncements
Pursuant to Communication “A” 6114 issued
by the BCRA, as the new IFRS are approved, or the current IFRS are modified or repealed and, once such changes are adopted by the Argentine
Federation of Professional Councils of Economic Sciences (FACPCE) by means of Notices of Adoption, the BCRA shall issue a statement announcing
its approval for financial institutions. In general, the early application of any IFRS is not permitted, unless specifically permitted
at the time of adoption.
The standards and interpretations applicable to the Entity,
issued but ineffective as of the date of these consolidated condensed interim financial statements are exposed below. The Entity will
adopt these standards, if applicable, when they are effective:
| a) | Amendments to IAS 1: Classification of current and noncurrent liabilities with covenants |
In January 2020 and October 2022, the IASB issued amendments
to IAS 1 Presentation of Financial Statements specifying the requirements to classify liabilities as current or non-current. The amendments
clarify: (i) what it mean by a right to defer settlement; (ii) That a right to defer must exist at the end of the reporting period; (iii)
that such classification is unaffected by the likelihood that an entity will exercise its right to defer; (iv) that only if an embedded
derivative in a convertible liability is itself an equity instrument would the terms of a liability do not affect its classification;
and (v) disclosures.
The IASB decided that if an entity's right to defer payment
of a liability is subject to an entity’s compliance with the required covenants only at a date subsequent to the reporting period
("future covenants"), the entity has the right to defer payment of the liability even if the entity had not been compliant at
the end of the reporting period.
The amendments also clarify that the requirement of the
right to exist at the end of the reporting period applies to covenants that the entity must comply with at the reporting date or earlier,
regardless of whether compliance is evidenced at that date or at a later date. These amendments will be effective for fiscal years starting
on or after January 1, 2024. The Bank does not expect that those amendments have significant impact on the financial statements.
| b) | Amendment to IFRS 16 – Lease liability in a sale and leaseback |
In September 2022, the IASB issued amendments to IFRS
16, specifically on the requirements that a lessee-seller uses to measure the lease liability arising in a sale and leaseback transaction,
to ensure that the lessee-seller does not recognize any amount of gain or loss that relates to the right-of-use. The application of these
requirements will not prevent the lessee-seller from recognizing, in profit or loss, any gain or loss related to the partial or total
termination of a lease. The amendment does not prescribe specific measurement requirements for lease liabilities arising from a subsequent
lease. The initial measurement of lease liabilities arising from a subsequent lease may result in the seller-lessee determining 'lease
payments' that are different from the general definition of lease payments. The seller-lessee should develop and apply an accounting policy
that results in information that is relevant and reliable in accordance with IAS 8. These amendments are effective from January 1, 2024.
The Entity does not expect that those amendments have significant impact on the financial statements.
2.7. Transcription to the books
As of the date of these consolidated condensed interim
financial statements, they are in the process of being transcribed to the Book of Balance Sheets for Publication and result. In addition,
the accounting entries are in the process of being transcribed to the relevant books and records, in accordance with applicable laws in
force.
| 3. | Cash and deposits in banks |
Cash and deposits in banks |
|
|
|
|
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
BCRA - Current account |
|
244,507,503 |
|
196,493,761 |
Cash |
|
120,057,652 |
|
142,981,795 |
Balances with other local and foreign financial institutions |
|
9,554,973 |
|
21,207,892 |
|
|
|
|
|
TOTAL |
|
374,120,128 |
|
360,683,448 |
The breakdown in the Consolidated Condensed Statement of Financial Position and the balance
of cash and cash equivalents calculated for the purposes of the preparation of the Consolidated Condensed Statement of Cash Flows is as
follows:
| 4. | Debt securities at fair value through profit
or loss |
Breakdown is as follows:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
BCRA Liquidity Bills |
|
19,793,524 |
|
17,791,699 |
Government securities |
|
8,523,147 |
|
13,274,338 |
|
|
|
|
|
TOTAL |
|
28,316,671 |
|
31,066,037 |
In the ordinary course of business, the group carried
out foreign currency forward transactions with daily or upon-maturity settlement of differences, with no delivery of the underlying asset
and interest rate swap transactions and options. These transactions do not qualify as hedging pursuant to IFRS 9 - “Financial Instruments”.
The aforementioned instruments are measured at fair
value and were recognized in the Consolidated Condensed Statement of Financial Position in the item “Derivative instruments”.
Changes in fair values were recognized in the Consolidated Condensed Statement of Income in “Net income from measurement of financial
instruments at fair value through profit or loss”.
Breakdown is as follows:
Assets
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Debit balances linked to foreign currency forwards pending settlement in pesos |
|
799,947 |
|
2,665,011 |
Income from put options taken (1) |
|
310,450 |
|
59,870 |
Debit balances linked to interest rate swaps - floating rate for fixed rate |
|
15,549 |
|
36,252 |
TOTAL |
|
1,125,946 |
|
2,761,133 |
| (1) | In particular, the Entity subscribed for options as set forth in Communication “A” 7546 issued by the BCRA. |
Liabilities
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Credit balances linked to foreign currency forwards pending settlement in pesos |
|
509,179 |
|
407,000 |
Credit balances linked to interest rate swaps - floating rate for fixed rate |
|
11,662 |
|
- |
|
|
|
|
|
TOTAL |
|
520,841 |
|
407,000 |
The notional amounts of the forward transactions
and foreign currency forwards, stated in US Dollars (US$) and in Euros as applicable, as well as
the base value of interest
rate swaps and put options taken are reported below:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Foreign currency forwards |
|
|
|
|
|
|
|
|
|
Foreign currency forward purchases - US$ |
|
797,063 |
|
1,165,119 |
Foreign currency forward sales - US$ |
|
814,118 |
|
1,217,856 |
Foreign currency forward sales - Euros |
|
6,925 |
|
1,825 |
|
|
|
|
|
Interest rate swaps |
|
|
|
|
|
|
|
|
|
Fixed rate for floating rate (1) |
|
1,500,000 |
|
1,500,000 |
|
|
|
|
|
Put options: |
|
|
|
|
|
|
|
|
|
Put options taken |
|
47,830,810 |
|
- |
| (1)Floating | rate: Badlar rate, interest rate for deposits over one million pesos, for a term of 30 to 35 days. |
Breakdown is as follows:
Reverse repurchase transactions
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Amounts receivable for reverse repurchase transactions of BCRA Liquidity Bills with the BCRA |
|
141,191,902 |
|
63,988,343 |
|
|
|
|
|
TOTAL |
|
141,191,902 |
|
63,988,343 |
Repurchase transactions
No repurchase transactions were accounted for as
of March 31, 2023 and December 31, 2022.
Breakdown is as follows:
|
|
03.31.23 |
|
12.31.22 |
Measured at amortized cost |
|
|
|
|
|
|
|
|
|
Other receivables |
|
16,518,018 |
|
16,753,707 |
Receivables from sale of ownership interest in Prisma Medios de Pago S.A. (1) |
|
12,709,544 |
|
13,145,891 |
Financial debtors from spot transactions pending settlement |
|
7,335,270 |
|
5,561,967 |
Non-financial debtors from spot transactions pending settlement |
|
1,511,654 |
|
106,857 |
Other |
|
54,860 |
|
72,781 |
|
|
|
|
|
|
|
38,129,346 |
|
35,641,203 |
|
|
|
|
|
Measured at fair value through profit or loss |
|
|
|
|
|
|
|
|
|
Mutual funds |
|
1,233,002 |
|
4,780,067 |
|
|
|
|
|
|
|
1,233,002 |
|
4,780,067 |
|
|
|
|
|
Allowance for loan losses (Exhibit R) |
|
(504,521) |
|
(562,446) |
|
|
|
|
|
TOTAL |
|
38,857,827 |
|
39,858,824 |
| (1) | On October 1, 2021, the Bank, together with the other Class B Shareholders, gave notice of the exercise
of the put option and therefore initiated the procedure to sell 49% of the capital stock in the company Prisma Medios de Pago S.A. |
On March 18, 2022, the transfer of all the remaining
shareholding of the Bank in Prisma Medios de Pago S.A. was consummated for a price of US$ 40,038,121.84. Such amount will be paid
as follows: (i) 30% in Pesos adjustable by CER (UVA) at an annual nominal rate of 15% and (ii) 70% in US Dollars at an annual nominal
rate of 10% within a term of six years.
| 8. | Loans and other financing |
The Group holds loans and other financing under a
business model intended to collect contractual cash flows. Therefore, it measures loans and other financing at amortized cost. Below is
a breakdown of the related balance:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Credit Cards |
|
320,883,576 |
|
334,200,517 |
Overdrafts |
|
107,647,656 |
|
76,627,339 |
Consumer loans |
|
91,858,659 |
|
86,824,571 |
Unsecured instruments |
|
77,744,367 |
|
70,852,957 |
Discounted instruments |
|
65,685,698 |
|
71,223,969 |
Mortgage loans |
|
43,721,019 |
|
46,879,105 |
Loans for the prefinancing and financing of exports |
|
32,659,362 |
|
30,522,170 |
Pledge loans |
|
27,141,205 |
|
30,077,661 |
Receivables from finance leases |
|
7,092,320 |
|
7,776,278 |
Loans to personnel |
|
5,468,556 |
|
5,869,937 |
Other financial institutions |
|
5,393,350 |
|
5,435,144 |
Instruments purchased |
|
1,490,674 |
|
1,188,431 |
BCRA |
|
- |
|
10,997 |
Non-financial government sector |
|
2,874 |
|
1,703 |
Other financing |
|
93,929,533 |
|
130,876,830 |
|
|
|
|
|
|
|
880,718,849 |
|
898,367,609 |
|
|
|
|
|
Allowance for loan losses (Exhibit R) |
|
(26,851,822) |
|
(25,429,540) |
|
|
|
|
|
TOTAL |
|
853,867,027 |
|
872,938,069 |
The Group as lessor entered into finance lease agreements
related to vehicles and machinery and equipment. The following table shows the total gross investment in the finance leases (lease-purchase
agreement) and the current value of the minimum collections to be received thereunder:
|
|
03.31.23 |
|
12.31.22 |
|
|
Total
investment |
Current value of minimum payments |
|
Total
investment |
Current value of minimum payments |
Term |
|
|
|
|
|
|
|
|
|
Up to 1 year |
|
3,879,082 |
1,586,455 |
|
3,996,076 |
1,689,682 |
From 1 to 2 years |
|
3,836,609 |
1,929,400 |
|
3,909,983 |
2,000,858 |
From 2 to 3 years |
|
2,838,501 |
1,659,868 |
|
3,094,889 |
1,875,415 |
From 3 to 4 years |
|
1,639,831 |
1,137,136 |
|
1,824,020 |
1,292,681 |
From 4 to 5 years |
|
815,120 |
779,461 |
|
951,118 |
917,642 |
|
|
|
|
|
|
|
TOTAL |
|
13,009,143 |
7,092,320 |
|
13,776,086 |
7,776,278 |
|
|
|
|
|
|
|
Principal |
|
|
6,898,140 |
|
|
7,561,659 |
Interest accrued |
|
|
194,180 |
|
|
214,619 |
|
|
|
|
|
|
|
TOTAL |
|
|
7,092,320 |
|
|
7,776,278 |
The breakdown of loans and other financing according
to credit performance (determined as per the criteria set forth by the BCRA in the debtor classification regulations) and guarantees received
are presented in Exhibit B. The information on concentration of loans and other financing is presented in Exhibit C. The reconciliation
of the information included in that Exhibit to the carrying amounts is shown below:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Total Exhibits B and C |
|
928,488,625 |
|
927,873,525 |
Plus: |
|
|
|
|
B.C.R.A. |
|
- |
|
10,997 |
Loans to personnel |
|
5,468,556 |
|
5,869,937 |
Interest and other items accrued receivable from financial assets with credit value impairment |
|
319,463 |
|
271,109 |
Less: |
|
|
|
|
Allowance for loan losses (Exhibit R) |
|
(26,851,822) |
|
(25,429,540) |
Adjustments for effective interest rate |
|
(7,502,889) |
|
(8,187,974) |
Corporate Bonds |
|
(4,872,948) |
|
(4,605,356) |
Loan commitments |
|
(41,181,958) |
|
(22,864,629) |
|
|
|
|
|
Total loans and other financing |
|
853,867,027 |
|
872,938,069 |
Note 42.2 to these consolidated condensed interim financial
statements contains information on credit risk associated with loans and other financing and allowances measured using the expected credit
loss model.
As of March 31, 2023 and December 31, 2022, the Group
holds the following loan commitments booked in off-balance sheet accounts according to the financial reporting framework set forth by
the BCRA:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Guarantees granted |
|
11,832,473 |
|
1,873,909 |
Secured loans |
|
10,470,090 |
|
8,093,676 |
Overdrafts and receivables agreed not used |
|
9,965,282 |
|
2,581,141 |
Liabilities related to foreign trade transactions |
|
8,914,113 |
|
10,315,903 |
|
|
|
|
|
TOTAL |
|
41,181,958 |
|
22,864,629 |
Risks related to the aforementioned loan commitments
are assessed and controlled within the framework of the Group's credit risks policy (Note 42.1 to the consolidated financial statements
as of December 31, 2022).
Financing line for productive investments
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 2020,
2021, 2021/2022, 2022, 2022/2023 and 2023 Quotas, pursuant to the following conditions:
Account |
2020 Quota |
2021 Quota |
2021/2022 Quota |
2022 Quota |
2022/2023 Quota |
2023 Quota |
Applicable law |
“B” 12161 |
“B” 12164 |
“B” 12238 |
“B” 12326 |
“B” 12413 – “A” 7612 |
“B” 12525 – “A” 7720 |
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 |
Between 10.16.2020 and 03.31.2021 |
Between 04.01.2021 and 09.30.2021 |
Between 10.01.2021 and 03.31.2022 |
Between 04.01.2022 and 09.30.2022 |
Between 10.01.2022 and 03.31.2023 |
Between 04.01.2023 and 09.30.2023 |
Maximum interest rate |
Capped at an annual nominal fixed rate of 35% for investment projects, and at an annual nominal fixed rate of 45.5% for other purposes. |
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. |
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, 2023, 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) |
2020 Quota |
19,730,132 |
25,291,147 |
39,279,053 |
2021 Quota |
24,449,302 |
30,093,764 |
41,734,860 |
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 |
58,519,929 |
86,880,132 |
127,355,598 |
2023 Quota |
58,558,806 |
(*) |
(*) |
(*) As of the date of these financial statements, the term reported by Communication
“B” 12525 has not expired.
(1) The amounts are exposed in nominal currency.
| 9.1 | Financial assets measured at amortized cost |
Breakdown is as follows:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Argentine Treasury Bond in pesos at 43.25% fixed rate or CER+1%, the lower. Maturity May 2027 |
|
35,773,123 |
|
39,481,044 |
Argentine Treasury Bonds in pesos at 0.7% Badlar Private Rate. Maturity 11-23-2027 |
|
14,173,949 |
|
14,722,815 |
|
|
49,947,072 |
|
54,203,859 |
| 9.2 | Financial assets measured at fair value through OCI |
Breakdown is as follows:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
BCRA Liquidity Bills |
|
509,094,494 |
|
570,796,983 |
Government securities |
|
131,834,508 |
|
153,178,765 |
Private securities - Corporate bonds |
|
4,796,873 |
|
4,532,014 |
BCRA Local Bills |
|
2,466,062 |
|
2,587,469 |
|
|
|
|
|
|
|
648,191,937 |
|
731,095,231 |
| 10. | Financial assets pledged as collateral |
Breakdown is as follows:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Guarantee trust - Government securities at fair value through OCI |
(1) |
24,267,386 |
|
20,328,610 |
BCRA - Special guarantee accounts (Note 46.1) |
(2) |
19,209,787 |
|
16,879,821 |
Deposits as collateral |
(3) |
9,641,341 |
|
10,028,149 |
Guarantee trust - USD |
(4) |
6,155 |
|
8,997,802 |
|
|
|
|
|
TOTAL |
|
53,124,669 |
|
56,234,382 |
| (1) | Set up as collateral to operate with Rosario
Futures Exchange (ROFEX), Bolsas y Mercados Argentinos SA (BYMA) and Mercado Abierto Electrónico S.A (MAE) on foreign currency
forward transactions and futures contracts. The trust fund consists of government securities. |
| (2) | Special guarantee current accounts opened at
the BCRA for transactions related to the automated clearing houses and other similar entities. |
| (3) | Deposits pledged as collateral for activities
related to credit card transactions in the country and abroad and leases. |
| (4) | The trust is composed of dollars in cash as
collateral for activities related to the transactions on MAE and BYMA. |
This tax should be booked using the liability method,
recognizing (as credit or debt) the tax effect of temporary differences between the accounting valuation and the tax valuation of assets
and liabilities, and its subsequent allocation to income or loss for the year in which its reversion occurs, also considering the possibility
of taking advantage of tax losses in the future.
| a) | Current income tax assets |
Breakdown is as follows:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Advances |
|
76,492 |
|
47,120 |
|
|
|
|
|
|
|
76,492 |
|
47,120 |
| b) | Current income tax liabilities |
Breakdown is as follows:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Income tax provision |
|
16,985,769 |
|
9,870,539 |
Advances |
|
(876,864) |
|
(928,563) |
Collections and withholdings |
|
(135,920) |
|
(118,723) |
|
|
|
|
|
|
|
15,972,985 |
|
8,823,253 |
Breakdown of deferred assets/liabilities is as follows:
Deferred tax assets: |
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Allowance for loan losses |
|
9,123,424 |
|
6,126,009 |
Provisions |
|
16,728,161 |
|
15,355,877 |
Loan and credit card commissions |
|
1,516,713 |
|
1,486,393 |
Tax inflation adjustment |
|
2,841,871 |
|
3,025,143 |
Other |
|
22 |
|
52 |
Tax losses |
|
300,715 |
|
1,073,754 |
Investments |
|
- |
|
6,918 |
|
|
|
|
|
Total deferred assets |
|
30,510,906 |
|
27,074,146 |
Deferred tax liabilities: |
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Intangible assets |
|
(6,192,521) |
|
(5,890,117) |
Property and equipment |
|
(15,711,081) |
|
(15,839,559) |
Investments |
|
(12,682,142) |
|
(11,597,649) |
Leasing and other items |
|
(57,786) |
|
(42,099) |
|
|
|
|
|
Total deferred liabilities |
|
(34,643,530) |
|
(33,369,424) |
|
|
|
|
|
Net deferred tax liabilities |
|
(4,132,624) |
|
(6,295,278) |
In the consolidated financial statements, the (current
and deferred) income tax assets of a Group entity will not be offset with the (current and deferred) income tax liabilities of another
Group entity because they are related to income tax amounts borne by different taxpayers and also because they do not have legal rights
before tax authorities to pay or receive any amounts to settle the net position. Considering the above, below is a breakdown of the deferred
income tax assets and liabilities disclosed in the consolidated condensed statement of financial position:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Deferred income tax assets |
|
1,538,191 |
|
1,850,530 |
Deferred income tax liabilities |
|
(5,670,815) |
|
(8,145,808) |
|
|
|
|
|
Net deferred tax liabilities |
|
(4,132,624) |
|
(6,295,278) |
Below are the main components of the income tax expense:
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Current income tax expense |
|
(9,647,035) |
|
(396,144) |
Income/(loss) on deferred income tax |
|
2,765,307 |
|
(3,143,828) |
|
|
|
|
|
Income tax recognized through profit or loss |
|
(6,881,728) |
|
(3,539,972) |
|
|
|
|
|
Income tax recognized through OCI |
|
(602,653) |
|
(1,185,522) |
|
|
|
|
|
Total income tax |
|
(7,484,381) |
|
(4,725,494) |
The Group's effective tax rate calculated on the income
tax recognized in the income statement for the period ended March 31, 2023 and 2022 was 31% and 30%, respectively.
Pursuant to IAS 34, income tax is recognized in interim
periods based on the best estimate of the weighted average effective income tax rate expected by the Entity for the full fiscal year.
| e) | Inflation adjustment for tax purposes |
Law No. 27,430 of Tax Reform, as amended by Laws 27,468
and 27,541, sets forth the following as regards the inflation adjustment for tax purposes, effective for fiscal years started on or after
January 1, 2018:
| i. | Such adjustment will be applicable in the fiscal
year in which the percentage variation of the general consumer price index at national level (CPI) exceeds 100% in the thirty-six months
prior to the closing of the fiscal year being settled; |
| ii. | Regarding the first, second and third fiscal
years as from January 1, 2018, the procedure will be applicable in the event that the variation of such index, calculated from the beginning
and until the closing of each of those fiscal years, exceeds 55%, 30% and 15% for the first, second and third year of application, respectively; |
| iii. | The effect of the positive or negative inflation
adjustment for tax purposes, as the case may be, corresponding to the first, second and third fiscal years started on or after January
1, 2018, is charged one third in that tax year and the remaining two thirds, in equal parts, in the two immediately following tax years;
|
| iv. | The effect of the positive or negative inflation
adjustment corresponding to the first and second tax years starting on or after January 1, 2019, one-sixth must be imputed to the tax
year in which the adjustment is determined and the remaining five-sixths in the immediately following tax periods; and |
| v. | For tax years beginning on or after January
1, 2021, 100% of the adjustment may be deducted in the year in which it is determined. |
As of March 31, 2023, the parameters established by the
income tax law to apply the inflation adjustment for tax purposes are met and the effects arising from the application of such adjustment
as provided by law have been included when booking current and deferred income tax.
| f) | Income Tax Corporate Rate: |
Law No. 27,630, enacted on June 16, 2021 through Decree
No. 387/2021, set forth for fiscal years starting on or after January 1, 2021, a tax rate scale scheme of 25%, 30% and 35% to be progressively
applied according to the level of taxable net income accumulated as of each fiscal year end. In these financial statements, the Entity
and its subsidiaries have determined the current income tax using the progressive tax rate that is expected to be applicable to the total
expected income for the year, while deferred income tax balances were measured using the progressive tax rate that is expected to be in
effect when the temporary differences are reversed.
- Inflation adjustment for tax
purposes. Fiscal years 2016, 2017 and 2018
On May 10, 2017, May 10, 2018 and May 13, 2019, and based
on related case law, the Entity’s Board of Directors approved the filing of actions for declaratory judgment of unconstitutionality
of section 39 of Law No. 24073, section 4 of Law No. 25561, section 5 of Decree No. 214/02 issued by the Argentine Executive, Law No.
27468 and any other regulation whereby the inflation adjustment mechanism provided for under Law No. 20628, as amended, is considered
not applicable due to the confiscatory effect in the specific case, for fiscal years 2016, 2017 and 2018. Consequently, the Entity filed
its income tax returns for those fiscal years taking into consideration the effect of those restatement mechanisms.
The net impact of this measure on nominal values was
an adjustment to the income tax assessed for the fiscal year ended December 31, 2016 in the amount of 1,185,800 (in nominal values), for
fiscal year ended December 31, 2017, in the amount of 1,021,519 (in nominal values), and for fiscal year ended December 31, 2018, in the
amount of 3,239,760 (in nominal values).
Through Memorandum No. 6/2017 dated May 29, 2017, the
BCRA, without resolving on the decisions adopted by the Entity's authorities or the Entity's right regarding the action filed, in its
capacity as issuer of accounting standards, requested the Entity to record a provision for contingencies included in “Liabilities”
in an amount equivalent to the income recorded, as it considers that “a reassessment of the income tax by applying the inflation
adjustment is not contemplated by the BCRA regulations”.
In response to this Memorandum, the Entity filed the
related answer and confirmed its position by providing the relevant supporting documentation. Notwithstanding the foregoing, the Entity
recorded the requested provision, pursuant to the accounting standards prescribed by the regulator for this case.
On June 8, 2020, the Federal Court on Administrative
Matters (JCAF 12-23) ruled upon the action for declaratory judgment filed on May 12, 2017, upholding the complaint and thus declaring
that the prohibition to apply the inflation adjustment mechanism for the purposes of the income tax return filed by the Bank for fiscal
year 2016 is not applicable to the instant case.
The appeals filed against the judgment were granted on
August 6, 2020, and the case was submitted to the Appellate Court for consideration. On December 9, 2020, the Federal Appellate Court
on Administrative Matters (Courtroom II) dismissed the appeals, thus confirming the judgment rendered by the court of original jurisdiction.
The tax authority Administración Federal de Ingresos Públicos (“AFIP” or the “Tax Authority”
or the “National Tax Authority”) filed an extraordinary appeal against the judgment, but then withdrew it through a motion
filed on February 1, 2021. Accordingly, the judgment rendered by the Appellate Court in favor of the Bank's interests became final.
In addition, the Bank reversed the provision set up for
fiscal year 2016 at the request of the BCRA, recognizing a benefit in the first quarter of 2021 in the amount of 1,185,800 in nominal
values (3,757,529 in values restated as of March 31, 2023).
On June 14, 2021, the Court of First Instance rendered
judgment in respect of the action for declaratory judgment of unconstitutionality for fiscal year 2017 in favor of the Bank’s position.
After appealing the judgment to the Appellate Court, the Bank filed the basis for the appeal but on September 3, 2021 the tax authority
filed a brief withdrawing the appeal filed. Although the Appellate Court did not accept the withdrawal because the documentation submitted
did not fulfill the necessary conditions, since no basis for the appeal was finally filed, we understand that the appeal will be declared
void.
On September 30, 2021, the Court determined that the
proceedings were set for the agreement to be entered. On November 2, 2021, AFIP filed a motion ratifying the withdrawal of the appeal
filed with respect to the merits of the case. On November 3, 2021, the Court ordered to proceed with the case for an agreement to be entered.
Finally, on May 10, 2022, the Appellate Court considered that AFIP had withdrawn its appeal with respect to the judgment on the merits.
On June 25, 2021, the Bank notified the BCRA about the
reversal of the provision set up pursuant to Memorandum No. 6/2017 issued by the BCRA concerning the income tax reassessment due to the
inflation adjustment for tax purposes for fiscal years 2017 and 2018 for a total amount of 4,261,279 in nominal values (12,170,064 in
values restated as of March 31, 2023), since, based on the assessment made and on its legal and tax advisors’ opinion, the Entity
believes that it is more probable than not that it will obtain a favorable final judgment in respect of these fiscal years. The Entity
notified the BCRA of the criteria adopted, to which the BCRA gave its consent.
On October 5, 2022, the Federal Contentious Administrative Trial Court
No. 2 issued a favorable decision on the unconstitutionality action filed with respect to the regulations banning the application of
title VI of the adjustment for inflation in the 2018 income tax return. After appealing the judgment, on November 17, 2022, we filed
a brief stating grievances in connection with legal costs, and on November 27, 2022, AFIP
filed its brief.
Based on the foregoing, as of March 31, 2023, the Entity
has no liabilities for the items referred to above.
- Inflation adjustment for tax
purposes. Fiscal year 2019
As concerns fiscal year 2019, the Entity assessed its
income tax liability applying the inflation adjustment for tax purposes according to the terms of the Public Emergency Law, which maintains
the inflation adjustment mechanism set out under Title VI of the Income Tax Law. Nevertheless, one sixth of the resulting inflation adjustment
amount should be recognized during that fiscal year, with the remaining five sixths being computed, in equal parts, over the five immediately
following fiscal years. Such deferral has been recognized as a deferred tax asset.
On August 21, 2020, the Bank filed a request for refund
at the administrative stage pursuant to the provisions of the first paragraph of section 81 of Law No. 11683 (as compiled in 1998 and
as amended) to recover the amount of 4,528,453 (in nominal values).
Upon no response from the tax authorities, on June 17,
2021 the Entity filed a motion for expedited proceedings and on November 18, 2021 a legal action was filed before National Court on Federal
Administrative Matters No. 10 (Court Clerk’s Office No. 24)
Pursuant to the financial reporting framework set forth
by the BCRA, the Entity does not record assets in relation to contingent assets derived from the action filed.
- Inflation adjustment for tax
purposes. Fiscal year 2020
In relation to fiscal year 2020, the Entity determined
the income tax as of December 31, 2020 by applying the inflation adjustment for tax purposes in accordance with the provisions of the
Public Emergency Law.
On May 26, 2021, and based on related case law, the Entity’s
Board of Directors approved the filing of an action against the federal tax authorities (AFIP-DGI) for declaratory judgment of unconstitutionality
of section 194 of the Income Tax Law (as compiled in 2019) and/or of such rules that prohibit the full application of the inflation adjustment
for tax purposes, on the grounds that they would lead to the assessment of a confiscatory income tax liability for fiscal year 2020; therefore
allowing the full application of the mechanism set forth in section 106, paragraphs a) through e), Title VI of the Income Tax Law in that
fiscal year.
Consequently, as of December 31, 2021, the Entity accounted
for an adjustment in nominal values to the income tax liability assessed for the fiscal year ended December 31, 2020 in the amount of
5,817,000 (20,323,956 in restated values), with the ensuing impact on deferred tax assets by 5,033,000 (decrease) (18,014,349 in restated
values) and on the income tax expense of 784,000 (2,309,609 in restated values).
- Inflation adjustment for tax
purposes Fiscal year 2021
On June 30, 2022, the Bank filed a prior administrative
claim before the AFIP in order to obtain the recognition of the corrective tax return in less filed on June 30, 2022 with respect to
the Income Tax for the 2021 tax year for 309,000 (in nominal values), on the grounds that the partial application of the correction mechanisms
of the inflation adjustment under the provisions of Section 93 of the Income Tax Law is unconstitutional, since it affects the principle
of reasonableness, equality, contributive capacity and confiscatory nature.
- Requests for refund. Fiscal
years 2013, 2014 and 2015
Regarding fiscal years 2013, 2014 and 2015, the Entity
assessed income tax without applying the inflation adjustment for tax purposes, consequently a higher tax was paid in the amounts of 264,257,
647,945 and 555,002, respectively, in nominal values.
Based on the grounds stated in the first paragraph “Inflation
Adjustment for Tax Purposes. Fiscal Years 2016, 2017 and 2018,” on November 19, 2015, an administrative action requesting a refund
for fiscal years 2013 and 2014 was filed, and the related judicial action was filed on September 23, 2016 for both fiscal years, given
that no answer was received from AFIP.
In turn, on April 4, 2017, a request for refund was filed
in relation to the higher amount of tax paid for fiscal year 2015. Likewise, on December 29, 2017, the related judicial action was filed
for this fiscal year.
On October 21, 2020, the Entity was notified that Court
of First Instance on Administrative Matters No. 1 rendered judgment upholding the request for refund for fiscal year 2014. AFIP filed
an appeal against such judgment before the Appellate Court.
On November 10, 2020, the Court of First Instance rendered
judgment sustaining BBVA Argentina's complaint, thereby ordering the tax authorities to refund the amount of 264,257 (nominal values)
paid in excess of the income tax liability for fiscal year 2013, plus accrued interest. The National Tax Authority filed an appeal against
the judgment. Finally, on May 6, 2021, the Federal Appellate Court on Administrative Matters (Courtroom I) confirmed the appealed judgment
on the merits, therefore dismissing the appeal brought by the national tax authorities.
On April 27, 2021, the Appellate Court rendered judgment
in favor of the Bank concerning the refund of income tax for fiscal year 2014. In its judgment, the Appellate Court substantially confirmed
the judgment rendered by the Court of First Instance on the merits, upholding the confiscatory nature of the tax.
The National Tax Authority brought extraordinary appeals
against both judgments, and the Appellate Court has rejected such appeal with respect to the claims of arbitrariness and serious institutional
implications. The proceedings are being handled by the Supreme Court.
On June 28, 2022, the Federal Appellate Court on Administrative
Matters (Courtroom VII) rendered judgment in favor of the Bank as regards the recovery of the income tax for tax period 2015 and AFIP
appealed such judgment.
Pursuant to the financial reporting framework set forth
by the BCRA, the Entity does not record assets in relation to contingent assets derived from the action filed.
| 12. | Investments in equity instruments |
12.1 Investments in equity instruments
through profit or loss
Breakdown is as follows:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Private securities - Shares of other non-controlled companies |
|
1,138,262 |
|
1,068,662 |
|
|
|
|
|
TOTAL |
|
1,138,262 |
|
1,068,662 |
12.2 Investments in equity instruments
through other comprehensive income
Breakdown is as follows:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Banco Latinoaméricano de Exportaciones S.A. |
|
73,449 |
|
70,636 |
Other |
|
2,843 |
|
2,973 |
|
|
|
|
|
TOTAL |
|
76,292 |
|
73,609 |
| 13. | Investments in associates |
Breakdown is as follows:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
BBVA Seguros Argentina S.A. |
|
1,505,445 |
|
1,457,321 |
Rombo Compañía Financiera S.A. |
|
1,039,298 |
|
905,942 |
Interbanking S.A. |
|
1,003,065 |
|
1,003,065 |
Play Digital S.A. (1) |
|
803,851 |
|
592,314 |
Openpay Argentina S.A. |
|
235,581 |
|
262,334 |
|
|
|
|
|
TOTAL |
|
4,587,240 |
|
4,220,976 |
| (1) | In order to determine the value of this investment,
the accounting information of Play Digital S.A. as of December 31, 2022 has been used. In addition, the significant transactions made
or events occurred between January 1, 2023 and March 31, 2023 were considered. |
| 14. | Property and equipment |
Breakdown is as follows:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Real estate |
|
85,603,933 |
|
86,199,325 |
Furniture and facilities |
|
14,972,751 |
|
15,544,171 |
Right of use of leased real estate |
|
7,572,249 |
|
7,128,288 |
Construction in progress |
|
4,177,744 |
|
3,980,826 |
Machinery and equipment |
|
3,506,716 |
|
3,796,585 |
Vehicles |
|
322,781 |
|
340,895 |
|
|
|
|
|
TOTAL |
|
116,156,174 |
|
116,990,090 |
The breakdown of lease assets and liabilities as well
as interest and foreign exchange differences recognized in profit or loss is disclosed in Note 25 to these consolidated condensed interim
financial statements.
Based on the reports prepared by the independent appraiser
relied upon by the Bank to assess the impairment of its property as of the end of the previous fiscal year, the carrying amount of certain
pieces of real estate exceeds its recoverable value. Therefore, such amount should be written down to the recoverable value.
The impairment of assets recorded under the item “Property
and equipment” is reported below:
Account |
|
Impairment |
|
|
03.31.2023 |
|
12.31.2022 |
|
|
|
|
|
Real Estate - Lavallol |
|
(26,175) |
|
(26,175) |
Real Estate - Monte Grande |
|
(116,584) |
|
(116,584) |
Real Estate - Caleta Olivia, Santa Cruz |
|
(29,112) |
|
(29,112) |
Real Estate - Cerro Las Rosas |
|
(60,741) |
|
(60,741) |
Real Estate - Libertador |
|
(426,809) |
|
(426,809) |
Real Estate - Store 1 Puerto Madero |
|
(161,400) |
|
(161,400) |
Real Estate - Store 5 Puerto Madero |
|
(100,739) |
|
(100,739) |
Real Estate - Mar del Plata |
|
(11,817) |
|
(11,817) |
Real Estate - Bahía Blanca |
|
(12,708) |
|
(12,708) |
|
|
|
|
|
TOTAL |
|
(946,085) |
|
(946,085) |
Breakdown is as follows:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Licenses - Software |
|
11,644,648 |
|
11,707,678 |
|
|
|
|
|
TOTAL |
|
11,644,648 |
|
11,707,678 |
| 16. | Other non-financial assets |
Breakdown is as follows:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Investment properties |
|
23,922,079 |
|
24,026,937 |
Prepayments |
|
4,260,086 |
|
4,342,467 |
Tax advances |
|
3,428,248 |
|
3,099,622 |
Advances to suppliers of goods |
|
1,816,207 |
|
1,096,644 |
Advances to personnel |
|
1,213,523 |
|
1,944,472 |
Other miscellaneous assets |
|
626,768 |
|
606,962 |
Assets acquired as security for loans |
|
32,354 |
|
32,065 |
Other |
|
247,668 |
|
326,006 |
|
|
|
|
|
TOTAL |
|
35,546,933 |
|
35,475,175 |
Investment properties include pieces of real estate
leased to third parties. The average term of lease agreements is 6 years. Subsequent renewals are negotiated with the lessee. The Group
has classified these leases as operating leases, since these arrangements do not substantially transfer all risks and benefits inherent
to the ownership of the assets. The rental income is recognized under “Other operating income” on a straight-line basis during
the term of the lease.
| 17. | Non-current assets held for sale |
It includes pieces of real estate located in the Argentine
Republic, which the Bank’s Board of Directors agreed to sell in the short term.
Breakdown is as follows:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Property and equipment held for sale |
|
322,975 |
|
273,994 |
|
|
|
|
|
TOTAL |
|
322,975 |
|
273,994 |
Based on the reports prepared by the independent appraiser
relied upon by the Bank to assess the impairment of its property as of the end of the previous fiscal year, the carrying amount of two
pieces of real estate exceeds its recoverable value. Therefore, such amount should be written down to the recoverable value.
The impairment of non-current assets held for sale is
reported below:
Account |
|
Impairment |
|
|
03.31.2023 |
|
12.31.2022 |
|
|
|
|
|
Real Estate held for sale - Fisherton |
|
(106,500) |
|
(106,500) |
Real Estate held for sale - Mendoza |
|
(482) |
|
(482) |
|
|
|
|
|
TOTAL |
|
(106,982) |
|
(106,982) |
The information on concentration of deposits is disclosed
in Exhibit H. Breakdown is as follows:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Non-financial Government sector |
|
12,038,345 |
|
11,783,852 |
Financial Sector |
|
1,029,176 |
|
413,901 |
Non-financial Private Sector and Residents Abroad |
|
1,558,795,521 |
|
1,587,145,832 |
Savings accounts |
|
549,030,065 |
|
607,489,678 |
Time deposits |
|
533,812,068 |
|
504,912,900 |
Checking accounts |
|
321,936,215 |
|
308,548,437 |
Investment accounts |
|
141,953,998 |
|
153,315,882 |
Other |
|
12,063,175 |
|
12,878,935 |
|
|
|
|
|
TOTAL |
|
1,571,863,042 |
|
1,599,343,585 |
| 19. | Liabilities at fair value through profit or loss |
No transactions were accounted for in the period/year
ended March 31, 2023 and December 31, 2022.
| 20. | Other financial liabilities |
Breakdown is as follows:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Obligations from financing of purchases |
|
97,173,718 |
|
100,531,775 |
Collections and other transactions on behalf of third parties |
|
10,921,821 |
|
10,260,208 |
Liabilities for leases (Note 25) |
|
5,013,626 |
|
5,023,572 |
Payment orders pending credit |
|
4,801,915 |
|
7,946,037 |
Credit balance for spot purchases or sales pending settlement |
|
3,797,313 |
|
3,234,336 |
Funds collected under AFIP's instructions |
|
3,069,180 |
|
5,697,847 |
Receivables from spot purchases pending settlement |
|
2,299,672 |
|
4,751,124 |
Commissions accrued payable |
|
95,951 |
|
49,719 |
Other |
|
5,537,311 |
|
6,675,891 |
|
|
|
|
|
TOTAL |
|
132,710,507 |
|
144,170,509 |
| 21. | Financing received from the BCRA and other financial institutions |
Breakdown is as follows:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Local financial institutions |
|
17,586,436 |
|
23,403,633 |
Foreign financial institutions |
|
792,069 |
|
681,277 |
BCRA |
|
77,481 |
|
107,120 |
|
|
|
|
|
TOTAL |
|
18,455,986 |
|
24,192,030 |
| 22. | Corporate bonds issued |
As of March 31, 2023, there were no outstanding receivables
or payables related to corporate bonds of the Bank and its subsidiaries, whereas the outstanding amounts as of December 31, 2022, were
as follows:
Detail |
|
Issuance date |
|
Nominal value |
|
Maturity date |
|
Annual Nominal Rate |
|
Payment of interest |
|
Outstanding securities as of 12.31.2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class 8 Volkswagen Financial Services |
|
09.30.2020 |
|
- |
|
03.30.2023 |
|
UVA (class 8 ) |
|
Quarterly |
|
73,039 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consolidated Principal |
|
73,039 |
|
|
|
|
|
|
|
|
Consolidated Interest Accrued |
|
159,692 |
|
|
|
|
|
|
|
|
Total Consolidated Principal and Interest Accrued |
|
232,731 |
Definitions:
UVA RATE: An interest rate with a variable component (UVA),
which represents a measurement unit adjusted on a daily basis as per CER, reflecting the changes in inflation based on the Consumer Price
Index (CPI).
Breakdown is as follows:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Provision for contingent commitments (Exhibits J and R) |
|
3,270,666 |
|
3,279,709 |
Provisions for termination plans (Exhibit J) |
|
454,017 |
|
552,685 |
For administrative, disciplinary and criminal penalties (Note 51 and Exhibit J) |
5,000 |
|
6,087 |
Other contingencies (Exhibit J) |
|
6,174,316 |
|
6,715,034 |
Provision for commercial lawsuits |
|
4,112,421 |
|
4,255,872 |
Provision for labor lawsuits |
|
667,041 |
|
748,441 |
Provision for tax lawsuits |
|
557,559 |
|
724,076 |
Other |
|
837,295 |
|
986,645 |
|
|
|
|
|
TOTAL |
|
9,903,999 |
|
10,553,515 |
It includes the estimated amounts to pay highly likely
liabilities which, in case of occurrence, would generate a loss for the Entity.
The breakdown of and changes in provisions recognized
for accounting purposes are included in Exhibit J. However, below is a brief description:
| - | Contingent commitments: it reflects the credit
risk arising from the assessment of the degree of compliance of the beneficiaries of unused overdrafts, unused credit card balances, guarantees,
sureties and other contingent commitments for the benefit of third parties on behalf of customers, and of their financial position and
the counter guarantees supporting those transactions. |
| - | Termination benefit plans: for certain terminated
employees, the Bank (fully or partially) bears the cost of private health care plans for a certain period after termination. The Bank
does not cover any situations requiring medical assistance, but it only makes the related health care plan payments. |
| - | Administrative, disciplinary and criminal penalties:
administrative penalties imposed by the Financial Information Unit, even if there were court or administrative measures to suspend payment
and regardless of the status of the disciplinary proceedings. |
| - | Other: it reflects the estimated amounts to
pay tax, labor and commercial claims and miscellaneous complaints. |
In the opinion of the Group’s Management and its
legal advisors, there are no significant effects other than those stated in these consolidated financial statements, the amounts and repayment
terms of which have been recorded based on the current value of those estimates, considering the probable date of their final resolution.
Contingent liabilities have not been recognized in these
consolidated condensed interim financial statements and are related to 123 claims brought against the Bank, including civil and commercial
claims, all of which have arisen in the ordinary course of business. The estimated amount of such claims is 47,757, out of which a cash
disbursement of approximately 4,095 is expected for the next 9 months. These claims are primarily related to lease-purchase agreements
and petitions to secure evidence. The Group's Management and legal advisors consider that the probability that these cases involve cash
disbursements is possible but not probable and that the potential cash disbursements are not material.
| 24. | Other non-financial liabilities |
Breakdown is as follows:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Miscellaneous creditors |
|
53,525,612 |
|
46,285,465 |
Advances collected |
|
23,361,366 |
|
23,897,861 |
Other collections and withholdings |
|
19,206,749 |
|
21,307,159 |
Short-term personnel benefits |
|
19,164,454 |
|
21,284,362 |
Cash dividends payable (Note 43) |
|
14,834,791 |
|
18,058,732 |
Other taxes payable |
|
10,624,085 |
|
8,617,025 |
Social security payment orders pending settlement |
|
1,579,547 |
|
373,324 |
Long-term personnel benefits |
|
916,273 |
|
1,115,400 |
Termination benefits payable |
|
765,932 |
|
1,092,581 |
For contract liabilities |
|
464,338 |
|
547,364 |
Other |
|
515,306 |
|
690,835 |
|
|
|
|
|
TOTAL |
|
144,958,453 |
|
143,270,108 |
The Group as lessee
Below is a detail of the amounts related to the rights
of use under leases and lease liabilities in force as of March 31, 2023:
Rights of use under leases
|
|
Initial |
|
|
|
|
|
Amortization |
|
Residual |
|
|
value as of |
|
|
|
|
|
Accumulated |
|
|
|
For the |
|
Accumulated as of |
|
value as of |
Account |
|
01.01.23 |
|
Increases |
|
Decreases |
|
as of 01.01.23 |
|
Decreases |
|
Period (1) |
|
period end |
|
03.31.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased real property |
|
16,861,642 |
|
756,030 |
|
296,681 |
|
9,733,354 |
|
265,848 |
|
281,236 |
|
9,748,742 |
|
7,572,249 |
Lease liabilities
Future minimum payments for lease agreements are as follows:
|
In foreign currency |
|
In local currency |
|
03.31.23 |
|
12.31.22 |
|
31.12.22 H |
|
|
|
|
|
|
|
|
|
|
Up to one year |
299,134 |
|
48,510 |
|
347,644 |
|
376,321 |
|
309,138 |
|
|
|
|
|
|
|
|
|
|
From 1 to 5 years |
3,331,491 |
|
321,567 |
|
3,653,058 |
|
3,842,759 |
|
3,156,729 |
|
|
|
|
|
|
|
|
|
|
More than 5 years |
1,003,600 |
|
9,324 |
|
1,012,924 |
|
804,492 |
|
660,870 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,013,626 |
|
5,023,572 |
|
4,126,737 |
Interest and exchange rate difference
recognized in profit or loss
|
|
|
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
|
|
|
Other operating expenses |
|
|
|
|
|
|
Interest on liabilities from leases (Note 38) |
|
|
|
(171,670) |
|
(218,115) |
|
|
|
|
|
|
|
|
Exchange rate difference |
|
|
|
|
|
|
|
Exchange rate difference for finance lease (loss) |
|
(3,821,633) |
|
(2,914,918) |
Breakdown is as follows:
Shares |
|
Share capital |
Class |
Number |
Par value per share |
Votes per share |
|
Outstanding shares |
|
Paid-in (1) |
Common |
612,710,079 |
1 |
1 |
|
612,710 |
|
612,710 |
(1)
Registered with the Public Registry of Commerce.
Banco BBVA Argentina S.A. is a corporation (sociedad
anónima) incorporated under the laws of Argentina. The shareholders limit their liability to the shares subscribed and paid in,
pursuant to the Argentine Companies Law (Law No. 19550). Therefore, and pursuant to Law No. 25738, it is reported that neither foreign
capital majority shareholders nor local or foreign shareholders shall be liable in excess of the above-mentioned capital contribution
for obligations arising from transactions carried out by the financial institution.
| - | Additional paid-in capital |
The additional paid-in capital account represents
the difference between the Nominal value of the shares issued and the subscription price.
| - | Inflation adjustment to the share capital |
It Includes the cumulative monetary inflation adjustment
to share capital.
| - | Other comprehensive income/(loss) (OCI)
- Fair value reserve |
The fair value reserve comprises the accumulated net
change in the fair value of financial assets measured at fair value through OCI, net of the related income tax.
| - | Other comprehensive income/(loss) - Share
of OCI from associates and joint ventures |
This item represents the Bank’s participation
in its associates’ and joint ventures’ OCI.
B.C.R.A. regulations establish that 20% of net income
determined in accordance with B.C.R.A. Generally Accepted Accounting Principles must be allocated to the legal reserve.
Set up to comply with the CNV requirement whereby
all the retained earnings assessed under BCRA regulations must be allocated by the stockholders' meeting to cash dividends, stock dividends,
the constitution of reserves other than the legal reserve, or a combination thereof.
Breakdown is as follows:
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Interest on government securities |
|
105,424,563 |
|
49,408,162 |
Interest on credit card loans |
|
26,263,762 |
|
16,474,043 |
Acquisition Value Unit (CER) clause adjustments |
|
21,968,186 |
|
13,456,520 |
Interest on instruments |
|
19,287,781 |
|
9,270,264 |
Premiums on reverse repurchase agreements |
|
17,521,855 |
|
15,138,123 |
Interest on overdrafts |
|
17,288,142 |
|
4,862,118 |
Interest on other loans |
|
14,172,216 |
|
10,495,421 |
Interest on consumer loans |
|
12,125,801 |
|
8,987,542 |
Acquisition Value Unit (UVA) clause adjustments |
|
8,677,937 |
|
7,140,095 |
Interest on pledge loans |
|
3,432,036 |
|
3,021,707 |
Interest on mortgage loans |
|
1,065,756 |
|
862,407 |
Interest on finance leases |
|
879,835 |
|
524,690 |
Interest on loans to the financial sector |
|
515,550 |
|
727,631 |
Interest on private securities |
|
219,810 |
|
194,418 |
Interest on loans for the prefinancing and financing of exports |
|
154,415 |
|
263,773 |
Other |
|
201,234 |
|
178,149 |
|
|
|
|
|
TOTAL |
|
249,198,879 |
|
141,005,063 |
Breakdown is as follows:
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Time deposits |
|
97,751,069 |
|
44,434,832 |
Checking accounts deposits |
|
12,690,663 |
|
10,637,386 |
Acquisition Value Unit (UVA) clause adjustments |
|
4,783,553 |
|
3,457,228 |
Interfinancial loans received |
|
2,089,551 |
|
1,797,768 |
Savings accounts deposits |
|
507,745 |
|
320,429 |
Other liabilities from financial transactions |
|
186,133 |
|
210,779 |
Premiums on reverse repurchase transactions |
|
- |
|
3,148 |
Other |
|
816 |
|
494 |
|
|
|
|
|
TOTAL |
|
118,009,530 |
|
60,862,064 |
Breakdown is as follows:
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Linked to liabilities |
|
9,010,701 |
|
10,887,551 |
From credit cards |
|
8,164,620 |
|
11,083,204 |
Linked to loans |
|
2,434,238 |
|
2,031,706 |
From foreign trade and foreign currency transactions |
|
1,009,963 |
|
1,047,506 |
From insurance |
|
968,203 |
|
1,144,465 |
Linked to securities |
|
383,923 |
|
269,530 |
From guarantees granted |
|
6,451 |
|
968 |
|
|
|
|
|
TOTAL |
|
21,978,099 |
|
26,464,930 |
Breakdown is as follows:
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
For credit and debit cards |
|
7,990,689 |
|
10,232,838 |
For payment of salaries |
|
635,279 |
|
705,077 |
For new channels |
|
453,343 |
|
265,887 |
For data processing |
|
387,938 |
|
464,588 |
For foreign trade transactions |
|
324,395 |
|
232,228 |
For advertising campaigns |
|
44,791 |
|
72,196 |
Linked to transactions with securities |
|
5,353 |
|
4,866 |
For digital sales services |
|
1,639 |
|
10,558 |
Other commission expenses |
|
807,932 |
|
923,068 |
|
|
|
|
|
TOTAL |
|
10,651,359 |
|
12,911,306 |
| 31. | Net income from measurement of financial instruments at fair value through profit or loss |
Breakdown is as follows:
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Income from government securities |
|
5,712,315 |
|
1,420,800 |
Income from private securities |
|
641,638 |
|
264,805 |
Income from foreign currency forward transactions |
|
629,028 |
|
1,325,057 |
Income/(loss) from interest rate swaps |
|
21,897 |
|
(1,571) |
Income/(loss) from loans |
|
(3) |
|
- |
Income/(loss) from put options taken |
|
(26,983) |
|
- |
Income from sale or write-off of financial assets (1) |
|
- |
|
5,342,456 |
Income from corporate bonds |
|
- |
|
1,669 |
Other |
|
- |
|
(6,454) |
|
|
|
|
|
TOTAL |
|
6,977,892 |
|
8,346,762 |
| (1) | Corresponds to the sale of 49% of Prisma Medios
de Pago S.A.’s capital stock. On March 18, 2022, the transfer of all the remaining shareholding of the Bank in such company was
consummated. |
| 32. | Net income (loss) from write-down of assets at amortized cost and at fair value through OCI |
Breakdown is as follows:
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Income/(Loss) from sale of government securities |
|
38,326 |
|
(69,962) |
|
|
|
|
|
TOTAL |
|
38,326 |
|
(69,962) |
| 33. | Foreign exchange and gold gains/(losses) |
Breakdown is as follows:
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Income from purchase-sale of foreign currency |
|
3,359,398 |
|
4,323,706 |
Conversion of foreign currency assets and liabilities into pesos |
|
(2,304,651) |
|
(827,155) |
|
|
|
|
|
TOTAL |
|
1,054,747 |
|
3,496,551 |
| 34. | Other operating income |
Breakdown is as follows:
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Adjustments and interest on miscellaneous receivables |
|
2,062,154 |
|
1,556,774 |
Rental of safe deposit boxes |
|
683,776 |
|
1,052,730 |
Loans recovered |
|
652,120 |
|
810,231 |
Debit and credit card commissions |
|
476,395 |
|
520,876 |
Rent |
|
245,387 |
|
91,902 |
Punitive interest |
|
220,677 |
|
117,428 |
Fees expenses recovered |
|
219,131 |
|
275,891 |
Commission from syndicated transactions |
|
100,203 |
|
145,729 |
Allowances reversed |
|
80,602 |
|
213,439 |
Income from asset sale in equity instruments (1) |
|
- |
|
1,715,418 |
Other operating income |
|
751,591 |
|
394,064 |
|
|
|
|
|
TOTAL |
|
5,492,036 |
|
6,894,482 |
(1) Corresponds to the sale of 49%
of Prisma Medios de Pago S.A.’s capital stock. On March 18, 2022, the transfer of all the remaining shareholding of the Bank in
such company was consummated.
Breakdown is as follows:
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Salaries |
|
12,872,846 |
|
11,268,450 |
Other short-term personnel benefits |
|
4,561,707 |
|
3,093,717 |
Social security withholdings and collections |
|
3,745,702 |
|
3,273,061 |
Personnel compensation and bonuses |
|
523,836 |
|
604,105 |
Personnel services |
|
348,563 |
|
279,206 |
|
|
|
|
|
TOTAL |
|
22,052,654 |
|
18,518,539 |
| 36. | Administrative expenses |
Breakdown is as follows:
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Taxes |
|
4,830,162 |
|
4,310,201 |
Rent |
|
3,496,332 |
|
3,183,505 |
IT |
|
2,728,324 |
|
715,190 |
Contracted administrative services |
|
2,654,420 |
|
1,406,057 |
Maintenance and repair costs |
|
2,111,032 |
|
1,989,619 |
Armored transportation services |
|
2,027,697 |
|
2,493,848 |
Advertising |
|
1,548,116 |
|
1,042,464 |
Electricity and communications |
|
813,680 |
|
806,720 |
Trade reports |
|
757,752 |
|
365,710 |
Documents distribution |
|
691,949 |
|
716,559 |
Other fees |
|
650,980 |
|
717,961 |
Security services |
|
548,323 |
|
573,660 |
Insurance |
|
190,099 |
|
220,138 |
Representation and travel expenses |
|
119,518 |
|
84,205 |
Stationery and supplies |
|
24,310 |
|
52,955 |
Fees to Bank Directors and Supervisory Committee |
|
24,010 |
|
26,285 |
Other administrative expenses |
|
762,855 |
|
733,163 |
|
|
|
|
|
TOTAL |
|
23,979,559 |
|
19,438,240 |
| 37. | Asset depreciation and impairment |
Breakdown is as follows:
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Property and equipment |
|
2,145,201 |
|
2,391,494 |
Intangible assets |
|
330,293 |
|
152,031 |
Right of use of leased real estate |
|
281,236 |
|
764,584 |
Depreciation of other assets |
|
63,591 |
|
31,223 |
|
|
|
|
|
TOTAL |
|
2,820,321 |
|
3,339,332 |
| 38. | Other operating expenses |
Breakdown is as follows:
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Turnover tax |
|
15,639,481 |
|
10,853,230 |
Other allowances (Exhibit J) |
|
1,562,992 |
|
1,260,972 |
Initial loss of loans below market rate |
|
996,977 |
|
1,014,888 |
Contribution to the Deposit Guarantee Fund (Note 45) |
|
585,717 |
|
645,346 |
Claims |
|
275,397 |
|
589,399 |
Interest on liabilities from leases (Note 25) |
|
171,670 |
|
218,115 |
Reorganization expenses (Exhibit J) |
|
- |
|
296,342 |
Other operating expenses |
|
1,059,323 |
|
963,495 |
|
|
|
|
|
TOTAL |
|
20,291,557 |
|
15,841,787 |
| 39. | Fair values of financial instruments |
| a) | Assets and liabilities measured at fair value |
The fair value hierarchy of assets and liabilities measured
at fair value as of March 31, 2023 is detailed below:
|
|
Accounting balance |
|
Total fair value |
|
Level 1 fair value |
|
Level 2 fair value |
|
Level 3 fair value |
|
|
|
|
|
|
|
|
|
|
|
Financial Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt securities at fair value through profit or loss |
|
28,316,671 |
|
28,316,671 |
|
8,523,147 |
|
19,793,524 |
|
- |
Derivative instruments |
|
1,125,946 |
|
1,125,946 |
|
- |
|
1,125,946 |
|
- |
Other financial assets |
|
1,233,002 |
|
1,233,002 |
|
1,233,002 |
|
- |
|
- |
Other debt securities |
|
648,191,937 |
|
648,191,937 |
|
12,764,620 |
|
633,766,915 |
|
1,660,402 |
Financial assets pledged as collateral |
|
24,267,386 |
|
24,267,386 |
|
5,407,546 |
|
18,859,840 |
|
- |
Investments in equity instruments |
|
1,214,554 |
|
1,214,554 |
|
1,138,262 |
|
76,292 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative instruments |
|
520,841 |
|
520,841 |
|
- |
|
520,841 |
|
- |
The fair value hierarchy of assets and liabilities measured
at fair value as of December 31, 2022 is detailed below:
|
|
Accounting balance |
|
Total fair value |
|
Level 1 fair value |
|
Level 2 fair value |
|
Level 3 fair value |
|
|
|
|
|
|
|
|
|
|
|
Financial Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt securities at fair value through profit or loss |
|
31,066,037 |
|
31,066,037 |
|
4,768,594 |
|
26,297,443 |
|
- |
Derivative instruments |
|
2,761,133 |
|
2,761,133 |
|
- |
|
2,761,133 |
|
- |
Other financial assets |
|
4,780,067 |
|
4,780,067 |
|
4,780,067 |
|
- |
|
- |
Other debt securities |
|
731,095,231 |
|
731,095,231 |
|
64,033,538 |
|
666,270,069 |
|
791,624 |
Financial assets pledged as collateral |
|
20,328,610 |
|
20,328,610 |
|
19,705,192 |
|
623,418 |
|
- |
Investments in equity instruments |
|
1,142,271 |
|
1,142,271 |
|
1,068,662 |
|
73,609 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative instruments |
|
407,000 |
|
407,000 |
|
- |
|
407,000 |
|
- |
The fair value of a financial asset or liability is the
price that would be received for the sale of an asset or paid for the transfer of a liability in an orderly transaction between market
participants at the measurement date.
The most objective and usual reference of the fair value
of a financial asset or liability is the price that would be paid in an orderly, transparent and deep market, that is to say, its quoted
or market price.
If it is not possible to obtain a market price, a fair
value is determined using best market practice valuation techniques, such as cash flows discount based on a yields curve for the same
class and type of instrument, or if there is no market curve with the same characteristics of the bond, the fair value is calculated considering
the latest market price plus interest accrued until the valuation date (whichever is more representative for the security).
In line with the accounting standard, a three-level classification
of financial instruments is established. This classification is mainly based on the observability of the inputs used to calculate that
fair value, defining the following levels:
| -Level | 1: Financial
instruments measured using quoted prices in an active market. Active market means a market that allows the observation of representative
prices with sufficient frequency and daily volume. |
| - | Level 2: Financial
instruments without an active market, but that may be measured through observable market inputs. Observable market inputs shall mean as
such assets traded in markets that allow to calculate an interest rate curve or determine a credit spread. |
| - | Level 3: Measurement
using models based on variables not obtained from observable market inputs. |
Financial assets at fair value mainly consist of BCRA
Liquidity Bills and Argentine Government Bonds, together with a minor share in Argentine Treasury Bills and Corporate Bonds. Likewise,
financial derivatives are classified at fair value. Such derivatives, include futures measured at the price of the market where they are
traded (Rofex and MAE) and foreign currency NDF (non-delivery forwards), put options, and interest rate swaps.
| b) | Transfers between hierarchy levels |
The Entity monitors the availability of market
information in order to assess the category of financial instruments in the different hierarchies at fair value, as well as the resulting
determination of inter-level transfers at each closing, considering the comparison of hierarchy levels of the current period versus previous
year levels.
b.1) Transfers from Level 1
to Level 2
The following instruments measured at fair value
through profit or loss or through OCI were transferred from Level 1 to Level 2 of the fair value hierarchy:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
|
|
|
|
|
Treasury Bonds in pesos adjusted by 1.50% CER. Maturity 03-25-2024 |
|
29,437,650 |
|
- |
b.2) Transfers from Level 2
to Level 1
The following instruments measured at fair value
through profit or loss or through OCI were transferred from Level 2 to Level 1 of the fair value hierarchy:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Boncer Tx26 2% Maturity 11-09-2026 |
|
9,809,116 |
|
- |
Argentine Treasury Bond in pesos at 16%. Maturity 10-17-2023 |
|
7,538,605 |
|
- |
Treasury Bills at discount. Maturity 04-28-2023 ARS |
|
7,147.00 |
|
- |
The hierarchy level of the instruments detailed
above was compared with the previous year levels.
The transfer is due to the fact that the bonds
were listed on the market the number of days necessary to be considered Level 1.
| c) | Valuation techniques for Levels 2 and 3 |
The valuation techniques used for Level 2 securities
require observable market data: the spot discount curve in pesos, US dollars, USD curves of corporate bonds (one of the energy sector
and the other of several industries), CER, the yield curve in pesos arising from ROFEX futures, the yield curve in pesos arising from
futures traded by ICAP Broker, and the spot selling exchange rate published by Banco de la Nación Argentina (BNA). Below is a
detail of valuation techniques for each financial product:
Fixed Income
The assessment of prices at fair value established by
the Bank for fixed income consists in considering MAE’s representative prices.
In the case of Argentine Treasury bonds and bills, MAE’s
prices are used; if the bonds are not listed within the last 10 business days, then a theoretical valuation is made discounting cash flows
using the related discount curve. Except for BCRA internal bills in US dollars to be settled in Argentine pesos at the benchmark exchange
rate (LEDIV), which cannot be transferred and do not accrue any interest, they are valued at their latest subscription price.
Liquidity bills issued by the BCRA without quoted prices
in MAE at the end of the month were assigned a theoretical value, discounting cash flows using the monetary policy rate.
In the case of Corporate Bonds in Dollars, we value them
by bringing the future flow of funds to present value with an interest rate curve with comparable corporate bonds.
SWAPS
For swaps, the theoretical valuation consists in discounting
future cash flows using the interest rate, according to the curve estimated on the basis of fixed-rate peso-denominated bonds and bills
issued by the Argentine Government.
Non-Delivery Forwards
The theoretical valuation of NDFs consists in discounting
the future cash flows to be exchanged pursuant to the contract, using a discount curve that will depend on the currency of each cash flow.
The result is then calculated by subtracting the present values in pesos, estimating the value in pesos based on the applicable spot exchange
rate, depending on whether the contract is local or offshore.
For local peso-dollar swap contracts, cash flows in pesos
are discounted using the yield curve in pesos resulting from the prices of ROFEX futures and the US dollar spot selling exchange rate
published by BNA. Cash flows in US dollars are discounted using the Overnight Index Swap (OIS) international dollar yield curve. Then,
the present value of cash flows in dollars is netted by converting such cash flows into pesos using the US dollar spot selling exchange
rate published by BNA.
For local peso-euro swap contracts, cash flows in pesos
are discounted using the yield curve in pesos resulting from the prices of ROFEX futures and the US dollar spot selling exchange rate
published by BNA. Cash flows in euros are discounted using the yield curve in euros. Then, the present value of cash flows in euros is
netted by converting such cash flows into pesos using the euro spot selling exchange rate published by BNA.
For offshore peso-dollar swap contracts, cash flows
in pesos are discounted using the yield curve in pesos resulting from market quoted forward prices sourced from ICAP and the US dollar
spot selling exchange rate published by BNA. Cash flows in dollars are discounted using the OIS yield curve. Then, the present value
of cash flows in dollars is netted by converting such cash flows into pesos using the Emerging Markets Traders Association (EMTA) US
dollar spot exchange rate.
The valuation techniques used for Level 3 financial assets
require the use of variables that are not based on observable market inputs. Below is a detail of the valuation techniques used for each
financial asset:
Investments in equity instruments
Investments in equity instruments for which the Group
has no control, joint control or a significant influence are measured at fair value through profit or loss and at fair value through other
comprehensive income.
Corporate Bonds
The valuation of corporate bonds (ONS) classified as
Level 3 has been determined by the Entity’s Management on the basis of the latest available market price (or subscription price,
if the security had not been listed in a market since the date of issuance) plus interest accrued to date. If the security has paid coupon,
then the “clean” price is calculated. If principal was repaid, then repayment amount is deducted and the “dirty”
price is recalculated, with interest being accrued until year end.
| - | ON Refi Pampa (ON REF2B) |
| - | ON Banco de Servicios Financieros (ON BSCNO) |
| - | ON Petroquímica Comodoro Rivadavia S.A.
(ON PQCLO) |
The most relevant unobservable inputs include:
The tables below show a sensitivity analysis for each
of the above-mentioned securities:
Latest market price scenarios |
Changes in final price |
ON ARCOR17 |
ON REF2B |
ON BSNO |
ON PQCLO |
ON WNCFO |
+5% |
2.000% |
2.000% |
1.870% |
1.820% |
1.820% |
+10% |
5.000% |
5.000% |
4.690% |
4.560% |
4.540% |
+15% |
10.000% |
10.000% |
9.370% |
9.110% |
9.080% |
UVA Scenarios |
Changes in final price |
ON ARCOR17 |
ON REF2B |
+5% |
5.000% |
5.000% |
+10% |
10.000% |
10.000% |
+15% |
15.000% |
15.000% |
Badlar Rate Scenarios |
Changes in final price |
ON BSCNO |
ON PQCLO |
ON WNCFO |
5% |
0.101% |
0.228% |
0.236% |
10% |
0.202% |
0.455% |
0.472% |
15% |
0.303% |
0.683% |
0.709% |
Parity Scenarios |
Changes in final price |
+ 7 Points % |
+7.023% |
7.056% |
-7 Points % |
-7.023% |
-7.056% |
+12 Points % |
12.039% |
12.096% |
-+12 Points % |
-12.039% |
-12.096% |
ON PQCLO and ON WNCFO, for which no representative market
quotations are available, were valued using a valuation technique based on their last available market price and a sensitivity analysis
was performed with respect to changes in parity.
Put options:
Below is a sensitivity analysis of the put (options)
held by BBVA. The input variable used in the sensitivity analysis is the underlying asset’s price.
The put options and the related underlying assets
are as follows:
Underlying |
Asset |
PJ3N6U001 |
TDJ23 BOND |
PL3N7V001 |
TDL23 BOND |
X3JN6G001 |
LCER16J3$ |
XY3N5J001 |
LT X19Y3 |
3X4N4C001 |
T3X4 BOND |
4X4NOB001 |
T4X4 BOND |
2X5N2D001 |
T2X5 BOND |
Underlying Put
Scenarios |
Changes in final price |
Changes in Underlying Price(%) |
PJ3N6U001 |
PL3N7V001 |
X3JN6G001 |
XY3N5J001 |
3X4N4C001 |
4X4NOB001 |
2X5N2D001 |
-6.000% |
6.568% |
6.628% |
9.636% |
12.520% |
5.760% |
6.014% |
5.876% |
-4.000% |
4.535% |
4.595% |
6.624% |
8.689% |
3.840% |
4.198% |
4.110% |
-2.000% |
2.503% |
2.562% |
3.612% |
4.858% |
1.920% |
2.381% |
2.345% |
0.000% |
0.000% |
0.000% |
0.000% |
0.000% |
0.000% |
0.000% |
0.000% |
2.000% |
0.000% |
0.000% |
0.000% |
0.000% |
0.000% |
0.000% |
0.000% |
6.000% |
0.000% |
0.000% |
0.000% |
0.000% |
0.000% |
0.000% |
0.000% |
| d) | Reconciliation of balances at beginning of year and at year-end of Level 3 assets and liabilities at
fair value |
The following table shows a reconciliation between
balances at beginning of year and at year-end of Level 3 fair values:
|
|
|
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
|
|
|
Balance at the beginning of the fiscal year |
|
791,624 |
|
6,730,111 |
|
|
|
|
|
|
|
|
Other debt securities - Private securities - Corporate bonds |
|
1,010,103 |
|
(475,877) |
Other financial assets - Receivables from sale of ownership interest in Prisma Medios de Pago S.A. |
|
- |
|
(5,370,863) |
Loss from sale or write-off of financial assets - Prisma Medios de Pago S.A. |
|
- |
|
4,554,770 |
Monetary gain (loss) generated by assets at fair value |
|
(141,325) |
|
(4,646,517) |
|
|
|
|
|
|
|
|
Balance at fiscal year-end |
|
1,660,402 |
|
791,624 |
| e) | Fair value of assets and liabilities not measured at fair value |
Below is a description of methodologies and
assumptions used to assess the fair value of the main financial instruments not measured at fair value, when the instrument does not have
a quoted price in a known market.
| - | Assets and liabilities with fair value similar
to their accounting balance |
For financial assets and financial liabilities
maturing in less than three months, it is considered that the accounting balance is similar to fair value.
| - | Fixed rate financial instruments |
The fair value of financial assets was assessed
by discounting future cash flows from market rates at each measurement date for financial instruments with similar characteristics, adding
a liquidity premium (un-observable input) that expresses the added value or additional cost necessary to dispose of the asset.
| - | Variable rate financial instruments |
For financial assets and financial liabilities
accruing a floating rate, it is considered that the accounting balance is similar to the fair value.
The fair value hierarchy of assets and liabilities
not measured at fair value as of March 31, 2023 is detailed below:
|
|
Accounting
balance |
|
Total fair value |
|
Level 1 fair value |
|
Level 2 fair value |
|
Level 3 fair value |
|
|
|
|
|
|
|
|
|
|
|
Financial Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and deposits in banks |
|
374,120,128 |
|
(a) |
|
- |
|
- |
|
- |
Repo transactions |
|
141,191,902 |
|
(a) |
|
- |
|
- |
|
- |
Other financial assets |
|
37,624,825 |
|
(a) |
|
- |
|
- |
|
- |
Loans and other financing |
|
|
|
|
|
|
|
|
|
|
Non-financial Government sector |
|
2,874 |
|
(a) |
|
- |
|
- |
|
- |
Other financial institutions |
|
5,280,375 |
|
3,518,850 |
|
- |
|
- |
|
3,518,850 |
Non-financial Private Sector and Residents Abroad |
|
848,583,778 |
|
791,865,448 |
|
- |
|
- |
|
791,865,448 |
Other debt securities |
|
49,947,072 |
|
50,164,933 |
|
- |
|
50,164,933 |
|
- |
Financial assets pledged as collateral |
|
28,857,283 |
|
(a) |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Financial Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
1,571,863,042 |
|
1,531,051,692 |
|
- |
|
1,531,051,692 |
|
- |
Other financial liabilities |
|
132,710,507 |
|
(a) |
|
- |
|
- |
|
- |
Financing received from the BCRA and other financial institutions |
|
18,455,986 |
|
17,567,277 |
|
- |
|
17,567,277 |
|
- |
| (a) | The fair value is not reported as it is considered similar to its accounting balance. |
The fair value hierarchy of assets and liabilities
not measured at fair value as of December 31, 2022 is detailed below:
|
|
Accounting
balance |
|
Total fair value |
|
Level 1 fair value |
|
Level 2 fair value |
|
Level 3 fair value |
|
|
|
|
|
|
|
|
|
|
|
Financial Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and deposits in banks |
|
360,683,448 |
|
(a) |
|
- |
|
- |
|
- |
Repo transactions |
|
63,988,343 |
|
(a) |
|
- |
|
- |
|
- |
Other financial assets |
|
35,078,757 |
|
(a) |
|
- |
|
- |
|
- |
Loans and other financing |
|
|
|
|
|
|
|
|
|
|
Non-financial Government sector |
|
1,703 |
|
(a) |
|
- |
|
- |
|
- |
B.C.R.A. |
|
10,997 |
|
(a) |
|
- |
|
- |
|
- |
Other financial institutions |
|
5,151,440 |
|
3,146,307 |
|
- |
|
- |
|
3,146,307 |
Non-financial Private Sector and Residents Abroad |
|
867,773,929 |
|
814,017,897 |
|
- |
|
- |
|
814,017,897 |
Other debt securities |
|
54,203,859 |
|
54,205,176 |
|
- |
|
54,205,176 |
|
- |
Financial assets pledged as collateral |
|
35,905,772 |
|
(a) |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Financial Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
1,599,343,585 |
|
1,568,306,318 |
|
- |
|
1,568,306,318 |
|
- |
Other financial liabilities |
|
144,170,509 |
|
(a) |
|
- |
|
- |
|
- |
Financing received from the BCRA and other financial institutions |
|
24,192,030 |
|
23,332,697 |
|
- |
|
23,332,697 |
|
- |
Corporate bonds issued |
|
232,731 |
|
231,255 |
|
- |
|
231,255 |
|
- |
| (a) | The fair value is not reported as it is considered similar to its accounting balance. |
Basis for segmentation
As of March 31, 2023 and December 31, 2022, the Group
determined that it has only one reportable segment related to banking activities, based on information reviewed by the chief operating
decision maker. Most of the transactions, properties and customers of the Group are located in Argentina. No client has generated more
than 10% of the Group's total revenues.
The following table shows relevant information on loans
and deposits by business line as of March 31, 2023 and December 31, 2022:
Group (banking activity) (1) |
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and other financing |
|
|
|
853,867,027 |
|
872,938,069 |
Corporate banking (2) |
|
|
|
99,302,482 |
|
82,042,315 |
Small and medium companies (3) |
|
|
|
299,693,000 |
|
318,806,287 |
Retail banking |
|
|
|
454,871,545 |
|
472,089,467 |
|
|
|
|
|
|
|
Other assets |
|
|
|
1,505,963,359 |
|
1,511,599,091 |
TOTAL ASSETS |
|
|
|
2,359,830,386 |
|
2,384,537,160 |
|
|
|
|
|
|
|
Deposits |
|
|
|
1,571,863,042 |
|
1,599,343,585 |
Corporate banking (2) (3) |
|
|
|
407,291,509 |
|
345,805,818 |
Small and medium companies (2)(3) |
|
|
|
257,116,341 |
|
296,313,442 |
Retail banking |
|
|
|
907,455,192 |
|
957,224,325 |
|
|
|
|
|
|
|
Other liabilities |
|
|
|
328,193,586 |
|
339,794,954 |
TOTAL LIABILITIES |
|
|
|
1,900,056,628 |
|
1,939,138,539 |
| (1) | It includes BBVA Asset Management Argentina S.A.U. Sociedad Gerente de Fondos Comunes de
Inversión, Consolidar A.F.J.P. (undergoing liquidation proceedings), PSA Finance Argentina Cía. Financiera S.A. and
Volkswagen Financial Services Compañía Financiera S.A. |
| (2) | It includes the Financial Sector. |
| (3) | It includes Government Sector. |
The information related to the operating segment (the
Group's banking activity) is the same as that presented in the Consolidated Statement of Income, considering that it is the measure used
by the Entity's chief operating decision marker for the allocation of resources and performance evaluation.
a) Parent
The Bank's parent is Banco Bilbao Vizcaya Argentaria.
b) Key
management personnel
Pursuant to IAS 24, key management personnel are
those having the authority and responsibility for planning, managing and controlling the Group’s activities, whether directly or
indirectly.
Based on that definition, the Group considers
the members of the Board of Directors as key personnel.
b.1) Remuneration of key management personnel
The Group's key management personnel received the following compensations:
|
03.31.23 |
|
03.31.22 |
|
|
|
|
Fees |
15,926 |
|
17,344 |
|
|
|
|
Total |
15,926 |
|
17,344 |
b.2) Profit or loss from transactions and balances
with key management personnel
|
Balances as of |
|
Profit or loss from transactions |
|
|
|
03.31.23 |
12.31.22 |
|
03.31.23 |
03.31.22 |
|
|
|
|
|
|
Loans |
|
|
|
|
|
Overdrafts |
2 |
2 |
|
1 |
2 |
Credit cards |
18,296 |
25,577 |
|
2,697 |
625 |
Consumer loans |
978 |
1,285 |
|
4,751 |
104 |
|
|
|
|
|
|
Deposits |
|
|
|
|
|
Deposits |
58,406 |
46,845 |
|
112 |
100 |
Loans are granted on an arm’s length basis.
As of March 31, 2023 and December 31, 2022, balances of loans granted are classified under normal performance according to the debtor
classification rules issued by the BCRA.
b.3) Profit or loss and balances with related parties
(except for key management personnel)
Parent |
Balances as of |
|
|
Profit or loss from transactions |
03.31.23 |
12.31.22 |
|
|
03.31.23 |
03.31.22 |
|
|
|
|
|
|
|
Cash and deposits in banks |
1,555,355 |
835,186 |
|
|
- |
- |
Financial assets pledged as collateral (2) |
- |
68,999 |
|
|
- |
- |
Other financial assets (2) |
526,899 |
641,406 |
|
|
- |
- |
Other non-financial liabilities |
33,504,504 |
31,984,299 |
|
|
5,775,642 |
2,613,847 |
Derivative instruments (Liabilities) (1) |
- |
13,487 |
|
|
74,429 |
3,269 |
|
|
|
|
|
|
|
Off-balance sheet balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities in custody |
117,758,582 |
224,410,577 |
|
|
- |
- |
Derivative instruments |
- |
2,352,932 |
|
|
- |
- |
Sureties granted |
4,215,212 |
2,809,583 |
|
|
2,501 |
3,073 |
Guarantees received |
4,549,722 |
3,316,828 |
|
|
- |
- |
|
|
|
|
|
|
|
(1) Profit or loss of Derivative Instruments (Assets) is exposed under Derivative Instruments (Liabilities). |
(2) These transactions do not generate profit or loss. |
|
Subsidiaries |
Balances as of |
|
|
Profit or loss from transactions |
03.31.23 |
12.31.22 |
|
|
03.31.23 |
03.31.22 |
|
|
|
|
|
|
|
Loans and other financing |
11,924,290 |
15,511,323 |
|
|
1,708,769 |
1,628,772 |
Deposits |
4,801,065 |
336,631 |
|
|
167,142 |
128,735 |
Other non-financial liabilities |
23 |
28 |
|
|
- |
2,206 |
Other operating income |
- |
- |
|
|
6,486 |
6,258 |
|
|
|
|
|
|
|
Off-balance sheet balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities in custody |
1,233,002 |
4,780,067 |
|
|
- |
- |
Associates |
Balances as of |
|
|
Profit or loss from transactions |
03.31.23 |
12.31.22 |
|
|
03.31.23 |
03.31.22 |
|
|
|
|
|
|
|
Cash and deposits in banks |
751 |
724 |
|
|
- |
- |
Loans and other financing |
2,048,580 |
2,253,624 |
|
|
673,465 |
700,394 |
Derivative instruments (Assets) |
15,549 |
36,252 |
|
|
21,897 |
- |
Other financial assets |
427,700 |
520,649 |
|
|
- |
- |
Deposits |
1,575,203 |
1,678,537 |
|
|
18,163 |
72,207 |
Financing received |
- |
195,412 |
|
|
18,613 |
- |
Derivative instruments (Liabilities) |
11,662 |
- |
|
|
- |
- |
Commission expenses |
- |
- |
|
|
126,298 |
- |
Other operating income |
- |
- |
|
|
97,228 |
29,858 |
|
|
|
|
|
|
|
Off-balance sheet balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
1,500,000 |
1,825,985 |
|
|
- |
- |
Securities in custody |
4,906,397 |
5,038,489 |
|
|
- |
- |
Guarantees received |
783,503 |
877,969 |
|
|
- |
- |
Secured loans |
- |
166,547 |
|
|
- |
- |
Transactions have been agreed upon on an arm’s
length basis. As of March 31, 2023 and December 31, 2022, balances of loans granted are classified under normal performance according
to the debtor classification rules issued by the BCRA.
| 42. | Financial instruments risks |
42.1 Risk policies of financial instruments
In these consolidated condensed interim financial statements,
the Entity applied the same financial instrument risk policies as in the preparation of its financial statements as of December 31, 2022.
42.2 Exposure to credit risk and allowances
Below is the exposure to credit risks and allowances,
measured in accordance with IFRS 9 as per BCRA (expected loss model, except for non-financial government sector's financial assets), as
of March 31, 2023 and December 31, 2022:
Default exposure -
Credit Investment |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.22 |
861,205,473 |
74,568,805 |
5,389,925 |
13,426,613 |
1,888,276 |
|
956,479,092 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(48,731,770) |
47,539,644 |
- |
- |
- |
|
(1,192,126) |
From stage 2 to stage 1 |
33,388,796 |
(30,517,962) |
(143) |
- |
- |
|
2,870,691 |
From stage 1 or 2 to stage 3 |
(830,892) |
(6,886,150) |
- |
7,919,986 |
- |
|
202,944 |
From stage 3 or 2 to stage 2 |
191,387 |
417,957 |
- |
(848,162) |
(21,733) |
|
(260,551) |
Changes without inter-stage transfers |
34,237,372 |
2,513,143 |
10,973 |
(360,846) |
7,338 |
|
36,407,980 |
Newly originated financial assets |
304,690,589 |
7,836,646 |
2,184,129 |
776,904 |
29,399 |
|
315,517,667 |
Reimbursements |
(219,358,484) |
(1,538,613) |
(2,496,251) |
(1,042,230) |
(37,703) |
|
(224,473,281) |
Decreases |
19 |
69 |
- |
(2,071,795) |
(79,674) |
|
(2,151,381) |
Foreign exchange differences |
7,496,778 |
233,349 |
299,794 |
592 |
154,881 |
|
8,185,394 |
Inflation adjustment |
(157,358,652) |
(14,225,757) |
(931,519) |
(2,621,299) |
(340,849) |
|
(175,478,076) |
|
|
|
|
|
|
|
|
Balances as of 03.31.23 |
814,930,616 |
79,941,131 |
4,456,908 |
15,179,763 |
1,599,935 |
|
916,108,353 |
Default exposure -
Credit Investment |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.21 |
855,810,434 |
94,186,042 |
12,038,006 |
15,625,321 |
7,187,949 |
|
984,847,752 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(184,184,664) |
188,500,417 |
1,032 |
- |
- |
|
4,316,785 |
From stage 2 to stage 1 |
141,473,242 |
(135,093,052) |
(163,474) |
- |
- |
|
6,216,716 |
From stage 1 or 2 to stage 3 |
(3,653,692) |
(20,702,054) |
(709,949) |
24,234,332 |
726,687 |
|
(104,676) |
From stage 3 or 2 to stage 2 |
817,408 |
1,885,462 |
370,312 |
(3,687,296) |
(395,568) |
|
(1,009,682) |
Changes without inter-stage transfers |
73,190,878 |
6,361,793 |
(5,276,630) |
(2,330,489) |
259,463 |
|
72,205,015 |
Newly originated financial assets |
1,318,838,667 |
18,516,229 |
18,885,632 |
3,159,049 |
202,577 |
|
1,359,602,154 |
Reimbursements |
(834,826,050) |
(29,642,666) |
(15,584,123) |
(4,305,346) |
(349,428) |
|
(884,707,613) |
Decreases |
- |
741 |
- |
(10,886,932) |
(4,480,758) |
|
(15,366,949) |
Foreign exchange differences |
23,622,261 |
2,531,653 |
1,786,615 |
4,028 |
597,147 |
|
28,541,704 |
Inflation adjustment |
(529,883,011) |
(51,975,760) |
(5,957,496) |
(8,386,054) |
(1,859,793) |
|
(598,062,114) |
|
|
|
|
|
|
|
|
Balances as of 12.31.22 |
861,205,473 |
74,568,805 |
5,389,925 |
13,426,613 |
1,888,276 |
|
956,479,092 |
Default exposure -
Contingent |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.22 |
237,259,146 |
22,334,538 |
74,990 |
81,494 |
191 |
|
259,750,359 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(11,690,457) |
10,418,386 |
- |
- |
- |
|
(1,272,071) |
From stage 2 to stage 1 |
12,149,357 |
(10,350,392) |
(104) |
- |
- |
|
1,798,861 |
From stage 1 or 2 to stage 3 |
(75,802) |
(50,390) |
- |
62,884 |
- |
|
(63,308) |
From stage 3 or 2 to stage 2 |
16,297 |
20,694 |
- |
(40,682) |
- |
|
(3,691) |
Changes without inter-stage transfers |
16,561,387 |
302,197 |
(10,140) |
12,333 |
210 |
|
16,865,987 |
Newly originated financial assets |
63,099,110 |
1,189,745 |
38,287 |
15,634 |
- |
|
64,342,776 |
Reimbursements |
(14,748,963) |
(1,491,854) |
(5,645) |
(21,307) |
(180) |
|
(16,267,949) |
Decreases |
- |
- |
- |
(116) |
- |
|
(116) |
Foreign exchange differences |
3,484,415 |
224,347 |
- |
- |
- |
|
3,708,762 |
Inflation adjustment |
(43,787,215) |
(3,830,621) |
(13,730) |
(17,812) |
(221) |
|
(47,649,599) |
|
|
|
|
|
|
|
|
Balances as of 03.31.23 |
262,267,275 |
18,766,650 |
83,658 |
92,428 |
- |
|
281,210,011 |
Default exposure -
Contingent |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.21 |
195,668,375 |
15,104,630 |
230,932 |
91,785 |
93 |
|
211,095,815 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(48,938,492) |
46,255,881 |
- |
- |
- |
|
(2,682,611) |
From stage 2 to stage 1 |
37,220,681 |
(31,668,088) |
(382) |
- |
- |
|
5,552,211 |
From stage 1 or 2 to stage 3 |
(284,481) |
(193,211) |
(1,943) |
229,929 |
3,720 |
|
(245,986) |
From stage 3 or 2 to stage 2 |
80,035 |
61,134 |
289 |
(160,256) |
(8,652) |
|
(27,450) |
Changes without inter-stage transfers |
109,011,199 |
4,803,587 |
(32,893) |
12,553 |
7,347 |
|
113,801,793 |
Newly originated financial assets |
135,541,874 |
5,724,226 |
14,944 |
29,413 |
- |
|
141,310,457 |
Reimbursements |
(71,602,700) |
(6,719,720) |
(58,961) |
(68,972) |
- |
|
(78,450,353) |
Decreases |
- |
- |
- |
(146) |
- |
|
(146) |
Foreign exchange differences |
11,406,719 |
587,279 |
- |
- |
- |
|
11,993,998 |
Inflation adjustment |
(130,844,064) |
(11,621,180) |
(76,996) |
(52,812) |
(2,317) |
|
(142,597,369) |
|
|
|
|
|
|
|
|
Balances as of 12.31.22 |
237,259,146 |
22,334,538 |
74,990 |
81,494 |
191 |
|
259,750,359 |
Allowances - Credit Investment |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.22 |
6,616,254 |
6,893,096 |
146,347 |
11,014,349 |
1,361,000 |
|
26,031,046 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(1,240,356) |
5,531,254 |
- |
- |
- |
|
4,290,898 |
From stage 2 to stage 1 |
468,384 |
(2,318,138) |
(3) |
- |
- |
|
(1,849,757) |
From stage 1 or 2 to stage 3 |
(47,616) |
(2,240,585) |
- |
4,623,771 |
- |
|
2,335,570 |
From stage 3 or 2 to stage 2 |
21,337 |
43,629 |
- |
(678,862) |
(13,889) |
|
(627,785) |
Changes without inter-stage transfers |
1,049,702 |
853,788 |
66,008 |
1,783,860 |
32,071 |
|
3,785,429 |
Newly originated financial assets |
2,405,815 |
75,890 |
161,215 |
493,942 |
19,770 |
|
3,156,632 |
Reimbursements |
(1,929,236) |
(136,098) |
(122,130) |
(769,827) |
(24,949) |
|
(2,982,240) |
Decreases |
- |
- |
- |
(1,993,149) |
(79,674) |
|
(2,072,823) |
Foreign exchange differences |
70,290 |
6,646 |
6,721 |
388 |
111,910 |
|
195,955 |
Inflation adjustment |
(1,146,968) |
(1,303,553) |
(36,857) |
(2,125,286) |
(248,972) |
|
(4,861,636) |
|
|
|
|
|
|
|
|
Balances as of 03.31.23 |
6,267,606 |
7,405,929 |
221,301 |
12,349,186 |
1,157,267 |
|
27,401,289 |
Allowances - Credit Investment |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.21 |
7,097,802 |
5,834,963 |
1,425,126 |
12,138,852 |
6,597,071 |
|
33,093,814 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(3,877,331) |
15,413,258 |
112 |
- |
- |
|
11,536,039 |
From stage 2 to stage 1 |
1,782,225 |
(7,723,560) |
(12,204) |
- |
- |
|
(5,953,539) |
From stage 1 or 2 to stage 3 |
(219,156) |
(5,841,932) |
(195,205) |
13,220,340 |
205,572 |
|
7,169,619 |
From stage 3 or 2 to stage 2 |
42,760 |
197,825 |
160,368 |
(2,585,278) |
(160,463) |
|
(2,344,788) |
Changes without inter-stage transfers |
1,948,413 |
2,766,269 |
(1,054,775) |
5,614,499 |
302,119 |
|
9,576,525 |
Newly originated financial assets |
14,418,507 |
847,929 |
1,067,068 |
1,842,383 |
128,978 |
|
18,304,865 |
Reimbursements |
(10,380,991) |
(1,223,649) |
(942,120) |
(2,980,638) |
(178,466) |
|
(15,705,864) |
Decreases |
- |
(99) |
- |
(9,717,097) |
(4,435,752) |
|
(14,152,948) |
Foreign exchange differences |
233,098 |
56,498 |
69,883 |
2,306 |
430,800 |
|
792,585 |
Inflation adjustment |
(4,429,073) |
(3,434,406) |
(371,906) |
(6,521,018) |
(1,528,859) |
|
(16,285,262) |
|
|
|
|
|
|
|
|
Balances as of 12.31.22 |
6,616,254 |
6,893,096 |
146,347 |
11,014,349 |
1,361,000 |
|
26,031,046 |
Allowances - Contingent |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.22 |
2,139,451 |
1,074,279 |
5,237 |
60,615 |
127 |
|
3,279,709 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(205,547) |
836,375 |
- |
- |
- |
|
630,828 |
From stage 2 to stage 1 |
146,433 |
(656,082) |
(29) |
- |
- |
|
(509,678) |
From stage 1 or 2 to stage 3 |
(1,827) |
(8,697) |
- |
37,777 |
- |
|
27,253 |
From stage 3 or 2 to stage 2 |
662 |
2,821 |
- |
(32,083) |
- |
|
(28,600) |
Changes without inter-stage transfers |
(288,879) |
(101,337) |
2,097 |
19,218 |
892 |
|
(368,009) |
Newly originated financial assets |
985,290 |
42,203 |
1,746 |
10,543 |
- |
|
1,039,782 |
Reimbursements |
(145,599) |
(59,469) |
(648) |
(12,851) |
(793) |
|
(219,360) |
Decreases |
- |
- |
- |
(77) |
- |
|
(77) |
Foreign exchange differences |
24,164 |
596 |
- |
- |
- |
|
24,760 |
Inflation adjustment |
(402,479) |
(189,155) |
(917) |
(13,165) |
(226) |
|
(605,942) |
|
|
|
|
|
|
|
|
Balances as of 03.31.23 |
2,251,669 |
941,534 |
7,486 |
69,977 |
- |
|
3,270,666 |
Allowances - Contingent |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.21 |
1,255,054 |
636,090 |
75,371 |
57,719 |
- |
|
2,024,234 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(477,460) |
2,069,842 |
- |
- |
- |
|
1,592,382 |
From stage 2 to stage 1 |
336,176 |
(1,335,627) |
(326) |
- |
- |
|
(999,777) |
From stage 1 or 2 to stage 3 |
(13,185) |
(32,096) |
(2,967) |
125,356 |
8,888 |
|
85,996 |
From stage 3 or 2 to stage 2 |
16,176 |
7,876 |
911 |
(115,784) |
(21,730) |
|
(112,551) |
Changes without inter-stage transfers |
384,691 |
177,785 |
(39,161) |
51,324 |
15,353 |
|
589,992 |
Newly originated financial assets |
1,800,914 |
118,615 |
3,012 |
17,656 |
- |
|
1,940,197 |
Reimbursements |
(472,253) |
(174,011) |
(19,828) |
(40,095) |
- |
|
(706,187) |
Decreases |
- |
- |
- |
(127) |
- |
|
(127) |
Foreign exchange differences |
96,548 |
2,724 |
- |
- |
- |
|
99,272 |
Inflation adjustment |
(787,210) |
(396,919) |
(11,775) |
(35,434) |
(2,384) |
|
(1,233,722) |
|
|
|
|
|
|
|
|
Balances as of 12.31.22 |
2,139,451 |
1,074,279 |
5,237 |
60,615 |
127 |
|
3,279,709 |
| 43. | Restrictions to the distributions of earnings |
| a) | In accordance with the regulations of the BCRA, 20% of the income for the year plus/less adjustments of
prior years' results, transfers from other comprehensive income to retained earnings and less the accumulated loss at the end of the previous
year, if any, must be allocated to the legal reserve. Therefore, the Shareholders’ Meeting held on April 28, 2023 applied 11,765,158
(14,321,997 in restated values) of Unappropriated retained earnings to increase the balance of such reserve. |
| b) | The mechanism to be followed by financial to assess distributable balances is defined by the BCRA by means
of the regulations in force on “Distribution of earnings” provided that certain situations are not verified, namely: to receive
financial assistance from such entity due to illiquidity, shortfalls as regards minimum capital requirements or minimum cash requirements,
to fall under the scope of the provisions of Sections 34 and 35 bis of the Financial Institutions Law (sections referred to regularization
and correction plans and restructuring of the Entity), among other conditions detailed in the referred communication to be complied with.
Furthermore, the distribution of earnings as approved by the Entity’s Shareholders’ Meeting shall not be effective unless
approved by the Superintendency of Financial and Foreign Exchange Institutions of the BCRA. |
In addition, no distributions of earnings shall
be made with the profit resulting from the first time application of IFRS, which shall be included as a special reserve, and the balance
of which as of March 31, 2023 amounts to 28,906,694.
Besides, the Entity shall verify that, once
the proposed distribution of earnings is made, capital conservation margin equivalent to 2.5% of the risk-weighted assets is kept, which
is additional to the minimum capital requirement set forth by law, and shall be paid in with level 1 ordinary capital (COn1), net of deductible
concepts (CDC0n1).
Furthermore, in accordance with Communication
“A” 7312 of the BCRA, the distribution of earnings is suspended until December 31, 2021. In accordance with the provisions
of Communication “A” 7421 of the BCRA, effective from January 1 to December 31, 2022, financial institutions may distribute
earnings for up to 20% of the amount that would have corresponded to them. As from January 1, 2022, those financial institutions that
have obtained the authorization of the BCRA must distribute earnings in 12 equal, monthly and consecutive installments.
In accordance with the provisions of Communication
“A” 7719 of the BCRA, effective since April 1 to December 31, 2023, financial institutions may distribute earnings for up
to 40% of the amount that would have corresponded to them. As from April 1, 2023, those financial institutions that have obtained the
BCRA authorization, shall distribute earnings in 6 equal, monthly and consecutive installments.
| c) | Pursuant to the provisions of General Resolution No. 622 of the CNV, the Shareholders’ Meeting that
considers the annual financial statements shall resolve upon the specific use of accumulated earnings of the Entity. |
In compliance with the above, on May 15, 2020, the
Ordinary and Extraordinary Shareholders’ Meeting was held approving the partial reversal of the Optional Reserve for future distribution
of earnings, in order to allocate the amount of 2,500,000 (10,964,765 in restated amounts) to the payment of a cash dividend subject to
the prior authorization of the BCRA.
On November 20, 2020, the General Extraordinary Shareholders’
Meeting was held approving the partial reversal of the optional reserve for future distribution of earnings in the amount of 12,000,000
(44,671,092 in restated amounts) and considering a supplementary dividend for the same amount, in order to increase the amount of the
cash dividend approved by the General Ordinary and Extraordinary Shareholders’ Meeting held on May 15, 2020, all subject to the
prior authorization of the BCRA.
On April 20, 2021, the Ordinary and Extraordinary Shareholders’
Meeting was held approving the partial reversal of the Optional Reserve for future distribution of earnings, in order to allocate the
amount of 7,000,000 (21,311,829 in restated amounts) to the payment of a cash dividend subject to the prior authorization of the BCRA.
On November 3, 2021, the General Extraordinary Shareholders’
Meeting was held approving the partial reversal of the optional reserve for future distribution of earnings in the amount of 6,500,000
(16.005074 in restated amounts) and considering a supplementary dividend for the same amount, in order to increase the amount of the cash
dividend approved by the General Ordinary and Extraordinary Shareholders’ Meeting held on April 20, 2021, all subject to the prior
authorization of the BCRA.
On April 29, 2022, the General Ordinary and Extraordinary
Shareholders’ Meeting was held and the following was approved:
| – | Allocate 3,934,134 (9,328,866 in restated values)
out of Unappropriated retained earnings for fiscal year 2021 to the Legal Reserve. |
| – | Allocate 15,736,535 (37,315,462 in restated
values) to Unappropriated retained earnings for fiscal year 2021 to the Optional Reserve for future distribution of earnings. |
| – | Also, in relation to the dividends approved
by the Shareholders' Meetings of May 15, 2020, November 20, 2020, April 20, 2021 and November 3, 2021, authorization was requested to
the BCRA for the distribution of 13,165,209. |
On June 7, 2022, the BCRA approved the distribution
of 13,165,209 on account of dividends, which were made available to the shareholders.
As of March 31, 2023, the balance of 14,834,791
under Other non-financial liabilities corresponds to the remaining dividends payable, which were approved at the shareholders’ meetings
held in 2020 and 2021.
On April 28, 2023, the General Ordinary and Extraordinary
Shareholders’ Meeting was held and the following was approved:
| – | Allocate 11,765,158 (14,321,997 in restated
amounts) out of Unappropriated retained earnings for fiscal year 2022 to the Legal Reserve. |
| – | Allocate 47,060,630 (57,287,987 in restated
amounts) to Unappropriated retained earnings for fiscal year 2022 to the Optional Reserve for future distribution of earnings. |
| – | Allocate 35,566,224 to the payment of dividends
by partially reversing the Optional Reserve for future distribution of earnings. |
| – | Request the BCRA authorization to pay dividends
for 50,401,015. |
As of March 31, 2023 and December 31, 2022, the Group
has the following restricted assets:
| a) | The Entity applied the following assets as
security for loans agreed under the Global Credit Program for micro, small and medium-sized enterprises granted by the Inter-American
Development Bank (IDB). |
|
03.31.23 |
12.31.22 |
|
|
|
Argentine Treasury Bonds adjusted by CER. Maturity 2024 |
50,206 |
50,288 |
|
|
|
Total |
50,206 |
50,288 |
| b) | Also, the Entity has accounts, deposits, repo
transactions and trusts applied as guarantee for activities related to credit card transactions, with automated clearing houses, forward
transactions, foreign currency futures, court proceedings and leases in the amount of 53,124,669 and 56,234,382 as of March 31, 2023 and
December 31, 2022, respectively (see Note 10). |
| 45. | Banking deposits guarantee insurance system |
Law No. 24,485 and Decree No. 540/95 provided for the
creation of the Deposit Guarantee Insurance System, which was assigned the characteristics of being limited, mandatory and onerous, with
the purpose of covering the risks of bank deposits, in a subsidiary and complementary manner to the system of privileges and protection
of deposits established by the Financial Institutions Law.
That law provided for the incorporation of the company
“Seguros de Depósitos Sociedad Anónima” (SEDESA) for the exclusive purpose of managing the Deposits Guarantee
Fund, the shareholders of which, pursuant to the changes introduced by Decree No. 1292/96, will be the BCRA with at least one share and
the trustees of the trust with financial institutions in the proportion determined by the BCRA for each, based on their contributions
to the Deposit Guarantee Fund.
Deposits in pesos and foreign currency made with the
participating entities under the form of checking accounts, savings accounts, time deposits or otherwise as determined by the BCRA up
to the amount of 6,000 and which meet the requirements of Decree No. 540/95 and those to be set forth by the enforcement authority shall
fall within the scope of said decree.
In August 1995, that company was incorporated, and
the Entity has an 8.6374% share of the corporate stock as of December 31, 2022 (BCRA Communication “B” 12503).
As of March 31, 2023 and 2022, the contributions to
the Fund have been recorded in the item “Other operating expenses - Contributions to the deposits guarantee fund” in the amounts
of 585,717 and 645,346, respectively.
| 46. | Minimum cash and minimum capital requirements |
46.1 Minimum cash requirements
The BCRA establishes different prudential regulations
to be observed by financial institutions, mainly regarding solvency levels, liquidity and credit assistance levels.
Minimum cash regulations set forth an obligation
to keep liquid assets in relation to deposits and other obligations recorded for each period. The items included for the purpose of meeting
that requirement are detailed below:
|
|
|
|
|
Accounts |
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Balances at the BCRA |
|
|
|
|
|
|
|
|
|
BCRA - Current account not restricted |
|
243,187,913 |
|
196,355,179 |
BCRA - Special guarantee accounts - restricted (Note 10) |
|
19,209,787 |
|
16,879,821 |
B.C.R.A. – Special pension accounts – restricted |
|
1,289,943 |
|
- |
|
|
|
|
|
|
|
263,687,643 |
|
213,235,000 |
|
|
|
|
|
Argentine Treasury Bonds in pesos at 0.7% Badlar Private Rate. Maturity 11-23-2027 |
|
14,173,949 |
|
14,722,815 |
Treasury Bonds adjusted by 4.25% CER. Maturity 02-14-2025 |
|
11,759,908 |
|
- |
Argentine Treasury Bond in pesos. Maturity 05-23-2027 |
|
35,773,123 |
|
39,481,044 |
Other debt securities |
|
12,707,689 |
|
22,563,907 |
BCRA Liquidity Bills |
|
528,636,118 |
|
588,515,017 |
|
|
|
|
|
TOTAL |
|
866,738,430 |
|
878,517,783 |
The balances disclosed are consistent with those reported by the
Bank.
46.2 Minimum cash requirements
The regulatory breakdown of minimum capital requirements is as follows
at the above-mentioned dates:
Minimum capital requirement |
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Credit risk |
|
86,390,146 |
|
84,235,653 |
Operational risk |
|
34,232,268 |
|
33,958,810 |
Market risk |
|
1,431,610 |
|
1,331,341 |
|
|
|
|
|
Paid-in |
|
409,267,196 |
|
337,987,676 |
|
|
|
|
|
Surplus |
|
287,213,172 |
|
218,461,872 |
| 47. | Compliance with the provisions to act in
the different categories of agent defined by the Argentine Securities Commission |
Considering the transactions carried out by Banco BBVA
Argentina S.A. and according to the different categories of agent set forth by General Resolution No. 622-13 of the CNV, on September
9 and 19, 2014, the Entity was registered as Custodian Agent of Collective Investment Products of Mutual Funds under No. 4 and Settlement
and Clearing Agent – Comprehensive (ALyC) under No. 42, respectively.
Section 8 of General Resolution No. 821 of the CNV sets
forth that the minimum shareholders’ equity required to operate as ALyC shall be equal to 470,350 UVAs adjusted by CER, Law No.
25827. As of March 31, 2023, it amounts to 102,663. The Entity’s shareholders’ equity exceeds the minimum shareholders’
equity required by said resolution.
Besides, the required minimum contra-account of 51,332,
fifty percent (50%) of the minimum shareholders’ equity amount, includes Argentine Treasury Bonds in pesos adjusted by CER due 2024
as of March 31, 2023 deposited with the account opened at Caja de Valores S.A., named “Depositor 1647 Brokerage Account 5446483
BBVA Banco Francés minimum cash contra-account”.
Furthermore, pursuant to the requirements of General
Resolution No. 792 issued by the CNV on April 30, 2019, mutual fund management companies’ minimum shareholders’ equity will
be comprised of 150,000 UVAs plus 20,000 UVAs, per each additional mutual fund under management. As concerns the cash contra-account,
the amount to be paid shall be equal to no less than fifty per cent (50%) of minimum shareholders' equity.
The subsidiary BBVA Asset Management Argentina S.A.U.
Sociedad Gerente de Fondos Comunes de Inversión, as Mutual Funds Management Agent, met the CNV minimum cash contra-account requirements
with 2,792,293 shares of FBA Renta Pesos Fondo Común de Inversión, in the amount of 112,367, through custody account No.
493-0005459481 held at BBVA Banco Francés S.A. As of March 31, 2023, the company's Shareholders’ Equity exceeds the minimum
amount imposed by the CNV.
| 48. | Compliance with the provisions of the Argentine
Securities Commission – Documentation |
The CNV issued General Resolution No. 629 on August 14,
2014 to introduce changes to its own rules governing the maintenance and safekeeping of corporate books, accounting records and business
documentation. In this respect, it is reported that the Bank has delivered the documentation that supports its operations for the periods
still open to audit for safekeeping in Administradora de Archivos S.A. (AdeA), domiciled at Ruta 36 Km. 31.5, district of Florencio Varela,
Province of Buenos Aires.
In addition, it is informed that a detail of the documentation
delivered for safekeeping, as well as the documentation referred to in Art. 5. a.3), Section I of Chapter V of Title II of the CNV rules
is available at the Bank’s registered office. (2013 consolidated text and amendments)
On January 5, 2001, the Board of Directors of BCRA issued
Resolution No. 19/2001, providing for the exclusion of Mercobank S.A.’s senior liabilities under the terms of section 35 bis of
the Financial Institutions Law, the authorization to transfer the excluded assets to the Bank as a trustee of the Diagonal Trust, and
the authorization to transfer the excluded liabilities to beneficiary banks. On the same date, Mercobank S.A., as Settler, and the Bank,
as Trustee, entered into the agreement to set up the Diagonal Trust in relation to the exclusion of assets as provided in the above-mentioned
resolution. As of March 31, 2023 and December 31, 2022, the assets of Diagonal Trust amount to 2,427 and 2,955, respectively, considering
their recoverable values.
In addition, the Entity, in its capacity as Trustee in
the Corp Banca Trust, recorded the selected assets on account of the redemption in kind of participation certificates in the amount of
4,177 and 5,085 as of March 31, 2023 and December 31, 2022, respectively.
In addition, the Entity acts as a Trustee in 12 non-financial
trusts, in no case as personally liable for the liabilities assumed in the performance of the contract obligations. Such liabilities will
be settled with and up to the full amount of the trust assets and the proceeds therefrom. The non-financial trusts concerned were set
up to manage assets and/or secure the receivables of several creditors (beneficiaries) and the trustee was entrusted with the management,
care, preservation and custody of the corpus assets until (i) noncompliance with the obligations by the debtor (settler) vis-a-vis the
creditors (beneficiaries) is verified, when such assets are sold and the proceeds therefrom are distributed (net of expenses) among all
beneficiaries, the remainder (if any) shall be delivered to the settler, or (ii) all contract terms and conditions are complied with,
in which case all the trust assets will be returned to the settler or to whom it may indicate. The trust assets totaled 637,751 and 689,081
as of March 31, 2023 and December 31, 2022, respectively, and consist of cash, creditors' rights, real estate and shares.
As of March 31, 2023 and December 31, 2022, the Entity
holds in custody, as Custodian Agent of Mutual Funds managed by BBVA Asset Management Argentina S.A.U. Sociedad Gerente de Fondos Comunes
de Inversión, time deposit certificates, shares, corporate bonds, government securities, mutual funds, deferred payment checks,
BCRA instruments, Buenos Aires City Government Bills, ADRS, Buenos Aires Province Government Bills and repos for 151,849,634 and 133,209,979,
which are part of the mutual fund portfolio and are recorded in debit balance memorandum accounts “Control – Other.”
The Mutual Fund assets are as follows:
Mutual funds |
03.31.23 |
|
12.31.22 |
|
|
|
|
FBA Renta Pesos |
500,314,472 |
|
496,485,715 |
FBA Renta Fija Plus |
7,815,821 |
|
13,238,604 |
FBA Ahorro Pesos |
6,083,916 |
|
8,343,897 |
FBA Acciones Argentinas |
3,135,127 |
|
2,675,178 |
FBA Calificado |
2,948,334 |
|
2,671,549 |
FBA Acciones Latinoamericanas |
1,251,233 |
|
1,267,620 |
FBA Bonos Argentina |
1,115,971 |
|
1,770,277 |
FBA Renta Mixta |
814,346 |
|
857,938 |
FBA Renta Publica I |
454,193 |
|
290,159 |
FBA Horizonte |
378,185 |
|
469,377 |
FBA Gestión I |
46,607 |
|
52,361 |
FBA Bonos Globales |
26,387 |
|
34,393 |
FBA Retorno Total I |
19,828 |
|
23,520 |
FBA Horizonte Plus |
11,104 |
|
14,304 |
FBA Renta Fija Local |
2,758 |
|
3,098 |
|
|
|
|
|
524,418,282 |
|
528,197,990 |
| 51. | Penalties and administrative proceedings instituted by the BCRA |
According to the requirements of Communication “A”
5689, as amended, issued by the BCRA, below is a detail of the administrative and/or disciplinary penalties as well as the judgments issued
by courts of original jurisdiction in criminal matters, enforced or brought by the BCRA of which the Entity has been notified:
Administrative proceedings commenced
by the BCRA
·
“Banco Francés S.A. over breach of Law 19,359.”
Administrative Proceedings for Foreign Exchange Offense initiated by the BCRA, notified on February 22, 2008 and identified under
No. 3511, File No. 100194/05, on grounds of a breach of the Criminal Foreign Exchange Regime as a result of the purchase and sale of US
Dollars through the BCRA in excess of the authorized amounts. They totaled 44 transactions involving the Bank's branches 099, 342, 999
and 320. The individuals/entities subject to these proceedings were Banco BBVA Argentina S.A. and the following Bank officers who served
in the capacities described below at the date when the breaches were committed: (i) two Territory Managers, (ii) four Branch Managers,
(iii) four Heads of Back-Office Management and (iv) twelve cashiers. On August 21, 2014, the court acquitted the individuals/entities
above from all charges. The General Attorney’s Office filed an appeal and Room A of the Appellate Court with jurisdiction over Criminal
and Economic Matters confirmed the Bank’s and the involved officers’ acquittal from all charges. The General Attorney’s
Office filed an Extraordinary Appeal, which was granted and as of the date of these financial statements is being heard by the Supreme
Court of Justice. The case has been called for resolution. The case has been called for resolution.
·
“Banco Francés S.A. over breach of Law 19,359.”
Administrative Proceedings for Foreign Exchange Offense initiated by the BCRA, notified on December 1, 2010 and identified under
No. 4539, File No. 18398/05 where charges focus on fake foreign exchange transactions, through false statements upon processing thereof,
carried out by personnel from five branches in Mar del Plata, which would entail failure to comply with the costumer identification requirements
imposed by foreign exchange rules and regulations through Communication “A” 3471, paragraph 6. The individuals/entities subject
to these proceedings were Banco BBVA Argentina S.A., the five regular members of the Board of Directors and the following Bank officers
who served in the capacities described below at the date when the breaches were committed: (i) the Retail Bank Manager, (ii) the Territory
Manager, (iii) the Area Manager, (iv) a commercial aide to the Area Manager, (v) five Branch Managers, (vi) four Heads of Back-Office
Management, (vii) five Main Cashiers and (viii) one cashier. To date, the case is being heard by Federal Court No. 3, Criminal Division
of the City of Mar del Plata, under File No. 16377/2016. On June 21, 2017, the court sought to obtain further evidence on its own initiative
ordering that an official letter should be sent to the BCRA for it to ascertain if the rules governing the charges brought in the Case
File No. 18398/05 Proceedings No. 4539 have been subject to any change. The BCRA answered the request from the Court, stating that noncompliance
with the provisions of Communication “A” 3471 would not currently be subject to any change that may imply a lesser offense.
On September 30, 2019, the court of original jurisdiction rendered judgment against the Bank for its involvement in the transaction imposing
a fine of US$ 592,000, while imposing fines to the individuals involved for the aggregate amount of US$ 518,766 and Euro 48,500.
The Bank is jointly and severally liable for the aforementioned fines. The Bank's Directors Jorge Carlos Bledel, Javier D. Ornella, Marcelo
Canestri and Oscar Castro and Territory Managers Oscar Fantacone and Jorge Allen were acquitted from all charges. An appeal was filed
on behalf of Banco BBVA Argentina S.A. and its employees asking for the reversal of the decision or otherwise significant reductions
of the amounts involved. On August 24, 2021, the Federal Appellate Court of Mar de Plata resolved to declare the action extinguished
based on the grounds of violation of the reasonable term and consequently acquit Banco BBVA Argentina S.A., Pablo Bistacco, Graciela
Alonso, Néstor O. Baquer, Hugo Benzan, Mariela Espinosa, Jorge Fioritti, Liliana Paz, Alberto Giménez, Jorge Elizalde,
Elizabeth Mosquera, Carlos Barcellini, Carlos O. Alfonzo, Samuel Alanis, Julián Gabriel Burgos, for the facts that were condemned
in the present case for violation of Law No. 19.359, and the relevant regulations. In view of this ruling, the Federal Prosecutor filed
an extraordinary federal appeal.
·
“Banco Francés S.A. over breach of Law 19,359.”
Administrative Proceedings for Foreign Exchange Offense initiated by the BCRA, notified on July 26, 2013 and identified under No.
5406, File No. 100443/12 where charges are concerned with fake foreign exchange transactions through false statements upon processing
thereof incurred by personnel in Branch 087 - Salta -, which would entail a failure to comply with the costumer identification requirements
imposed by foreign exchange rules and regulations through Communication “A” 3471, Paragraph 6. The individuals/entities subject
to these proceedings were Banco BBVA Argentina S.A. and the following Bank officers who served in the capacities described below at the
date when the breaches were committed: (i) the Branch Manager (ii) the Back Office Management Head, (iii) the Main Cashier and (iv) two
cashiers. The trial period came to a close and the BCRA must send the file to Salta’s Federal Court. As of the date hereof, the
case file has not been sent to court.
·
“Banco Francés S.A. over breach of Law 19,359.”
Administrative Proceedings for Foreign Exchange Offense initiated by the BCRA, notified on December 23, 2015 and identified under
No. 6684, File No. 100068/13. The proceedings were brought for allegedly having completed operations under Code 631 “Professional
and technical business services” for ROCA ARGENTINA S.A. against the applicable exchange regulations (Communications “A”
3471, “A” 3826 and “A” 5264), involving the incomplete verification of the services provided. The individuals/entities
subject to these proceedings were Banco BBVA Argentina S.A. and two Bank officers holding the positions described below at the date when
the breaches were committed: (i) the Foreign Trade Manager and (ii) an officer of the Area. The BCRA has decided that the trial period
has come to an end. The case is being heard by Federal Court No. 2, Criminal Division of Lomas de Zamora, Province of Buenos Aires, under
File No. 39130/2017. On October 26, 2017, the Entity filed a request for retroactive application of the most favorable criminal law,
as through Communication “A” 5264, whereby the restriction on foreign trade transactions was removed, the payment of services
abroad was reinstated.
·
“Banco Francés S.A. over breach of Law 19,359.”
Administrative proceedings for Foreign Exchange Offense initiated by the B.C.R.A. notified on March 15, 2021 and identified under
No. 7545, file No. 381/22/21. The charge consists of the alleged breach of Communication "A" 6770, corresponding to transactions
carried out by the companies MULTIPOINT S.A. and TELECENTRO S.A. (i) Multipoint S.A. challenges transactions for a total amount of US$
800,000, alleging the alleged breach of Communication "A" 6770, paragraph 11, when three exchange transactions were carried
out under concept code P8 (Other financial loans) in order to pre-cancel a financial loan from a loan agreement entered into on April
5, 2019 whose original maturity date was April 5, 2021. The latter included an addendum executed on October 18, 2019 modifying the third
clause of the aforementioned loan agreement and setting the payment date of the principal on October 18, 2019. According to the B.C.R.A.,
this would be an early cancellation in breach of the aforementioned rule. (ii) TELECENTRO S.A. challenges a transaction for the amount
of US$ 185,724, alleging the alleged breach of Communication "A" 6770, paragraph 12, when a transaction was carried out under
concept code B07 (payments in view of imports of goods) was carried out, which pre-paid on October 24, 2019, a commercial debt arising
from two invoices that had payment date on October 29, 2019. The individuals/entities subject to these proceedings were Banco BBVA Argentina
S.A. and two Bank officers holding the positions described below at the date when the breaches were committed: (i) the Foreign Trade Manager
and (ii) an officer of the Area. The relevant answers to the charges were filed. On October 24, 2022, the Trial Court in Criminal and
Economic Matters No. 4 of the City of Buenos Aires issued an unfavorable court ruling. The Bank and the officials considered to be liable
appealed such ruling.
·
Banco BBVA ARGENTINA S.A. Financial summary proceedings
initiated by the B.C.R.A. Notified on June 28, 2021 and identified
under No. 1587, file No. 388/55/21. The charge consists of the alleged breach of paragraph 7.2 of Communication "A" 6981 by
assisting (without prior approval of the BCRA) Cargill S.A. through a checking account overdraft amounting to $ 167 million from April
29, 2020 to May 3, 2020, since as it had bonds taken as of April 22, 2020, it should have waited 90 calendar days without executing repo
transactions and/or surety bonds, before being assisted. Likewise, during May and June 2020, Cargill’s checking account disclosed
credit balances, which were generally covered at the end of the day. In this regard, it should be noted that Banco BBVA Argentina S.A.
violated paragraph 7.2 of the revised text of the rules on "Credit Policy", which strictly includes the restriction on the granting
of intraday (within the same day) assistance. The individuals/entities subject to these proceedings were Banco BBVA Argentina S.A. (30-50000319-3);
María Isabel Goiri Lartitegui; Jorge Delfín Luna; Alfredo Castillo Triguero; Juan Manuel Ballesteros Castellano; Oscar Miguel
Castro; Gabriel Eugenio Milstein; Adriana María Fernandez De Melero; José Santiago Fornieles; Darío Javier Berkman;
Carlos Eduardo Elizalde and Nicolás Herbert Bohtligk. The relevant answers to the charges were filed on August 4, 2021.
·
BBVA ARGENTINA S.A. Financial summary proceedings
brought by the B.C.R.A. Notified on October 25, 2022, and identified
under No. 7835, related to foreign exchange transactions performed in alleged noncompliance with the provisions established by point 9-A16
of BCRA Communiqué “A” No. 6770 referring to notes related to transactions performed between residents and import prepayments.
Due to the link between cases and procedural economy, five cases have been filed with the oversight agency. The infringement stands at
USD 1,414, 526.28. The defendants are Banco BBVA Argentina S.A. (Argentine tax identification No. 30-50000319-3) and the following officials
and employees: Ruben Lauriente, Noelia Sorbello, Juan Manuel Olives, Santiago Alejandro Gonzales, Mario Gustavo Dellamea, Maria Teresa
Palacios, Mirtha Susana Monteleone and Gustavo Cara. The relevant answers to the charges have been filed.
The Group and its legal advisors estimate that a reasonable
interpretation of the applicable regulations in force was made and do not expect an adverse financial impact from these cases.
| 52. | Events after reporting period |
General Ordinary and Extraordinary Shareholders’ Meeting held on
April 28, 2023
On April 28, 2023, the Ordinary and Extraordinary General Stockholders' Meeting
was held, in which what was mentioned in Note 43 "Restrictions to the distribution of earnings" of these consolidated condensed
interim financial statements was approved.
No other events or transactions have occurred between
period-end and the date of these consolidated condensed interim financial statements which may significantly affect the Entity's financial
position or results of operations as of March 31, 2023.
| 53. | Accounting principles – Explanation added for translations into
English |
These consolidated condensed interim financial statements
are presented in accordance with the financial reporting framework set forth by the BCRA, as mentioned in note 2. These accounting standards
may not conform to accounting principles generally accepted in other countries.
|
|
|
|
|
EXHIBIT B |
|
|
|
|
|
|
|
|
|
|
|
|
CLASSIFICATION OF LOANS AND OTHER FINANCING ACCORDING TO FINANCIAL PERFORMANCE AND GUARANTEES RECEIVED |
CONSOLIDATED WITH SUBSIDIARIES |
AS OF MARCH 31, 2023 AND DECEMBER 31, 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
(Translation of Financial statements originally issued in Spanish - See Note 53) |
|
|
|
|
|
|
|
|
|
|
|
|
Account |
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
|
COMMERCIAL PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
Normal performance |
|
340,082,822 |
|
311,916,262 |
|
Preferred collaterals and counter-guarantees "A" |
|
1,237,903 |
|
2,203,251 |
|
Preferred collaterals and counter-guarantees "B" |
|
2,784,160 |
|
3,396,483 |
|
No preferred guarantees or counter guarantees |
|
336,060,759 |
|
306,316,528 |
|
|
|
|
|
|
With special follow-up |
|
874,895 |
|
934,713 |
|
|
|
|
|
|
Under negotiation or refinancing agreements |
|
874,895 |
|
934,713 |
|
Preferred collaterals and counter-guarantees "B" |
|
152,395 |
|
157,233 |
|
No preferred guarantees or counter guarantees |
|
722,500 |
|
777,480 |
|
|
|
|
|
|
Troubled |
|
1,169,369 |
|
1,339,010 |
|
No preferred guarantees or counter guarantees |
|
1,169,369 |
|
1,339,010 |
|
|
|
|
|
|
With high risk of insolvency |
|
168,039 |
|
173,355 |
|
No preferred guarantees or counter guarantees |
|
168,039 |
|
173,355 |
|
|
|
|
|
|
Uncollectible |
|
28,292 |
|
33,295 |
|
No preferred guarantees or counter guarantees |
|
28,292 |
|
33,295 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
342,323,417 |
|
314,396,635 |
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT B |
|
|
|
|
|
(Continued) |
|
|
|
|
|
|
CLASSIFICATION OF LOANS AND OTHER FINANCING ACCORDING TO FINANCIAL PERFORMANCE AND GUARANTEES RECEIVED |
CONSOLIDATED WITH SUBSIDIARIES |
AS OF MARCH 31, 2023 AND DECEMBER 31, 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
|
(Translation of Financial statements originally issued in Spanish - See Note 53) |
|
|
|
|
|
|
Account |
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
|
CONSUMER AND HOUSING PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
Normal performance |
|
566,723,373 |
|
597,165,858 |
|
Preferred collaterals and counter-guarantees "A" |
|
521,516 |
|
201,585 |
|
Preferred collaterals and counter-guarantees "B" |
|
68,902,815 |
|
68,202,311 |
|
No preferred guarantees or counter guarantees |
|
497,299,042 |
|
528,761,962 |
|
|
|
|
|
|
Low risk |
|
8,355,447 |
|
7,132,541 |
|
Preferred collaterals and counter-guarantees "B" |
|
692,377 |
|
679,473 |
|
No preferred guarantees or counter guarantees |
|
7,663,070 |
|
6,453,068 |
|
|
|
|
|
|
Low risk - with special follow-up |
|
262,995 |
|
225,693 |
|
No preferred guarantees or counter guarantees |
|
262,995 |
|
225,693 |
|
|
|
|
|
|
Medium risk |
|
6,248,016 |
|
4,838,058 |
|
Preferred collaterals and counter-guarantees "A" |
|
77 |
|
62 |
|
Preferred collaterals and counter-guarantees "B" |
|
280,713 |
|
201,121 |
|
No preferred guarantees or counter guarantees |
|
5,967,226 |
|
4,636,875 |
|
|
|
|
|
|
High risk |
|
3,864,357 |
|
3,404,265 |
|
Preferred collaterals and counter-guarantees "A" |
|
- |
|
- |
|
Preferred collaterals and counter-guarantees "B" |
|
220,783 |
|
243,489 |
|
No preferred guarantees or counter guarantees |
|
3,643,574 |
|
3,160,776 |
|
|
|
|
|
|
Uncollectible |
|
711,020 |
|
710,475 |
|
Preferred collaterals and counter-guarantees "A" |
|
4,302 |
|
5,237 |
|
Preferred collaterals and counter-guarantees "B" |
|
276,058 |
|
296,999 |
|
No preferred guarantees or counter guarantees |
|
430,660 |
|
408,239 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
586,165,208 |
|
613,476,890 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL GENERAL |
928,488,625 |
|
927,873,525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT C |
|
|
|
|
|
|
|
|
|
|
CONCENTRATION OF LOANS AND OTHER FINANCING |
CONSOLIDATED WITH SUBSIDIARIES |
AS OF MARCH 31, 2023 AND DECEMBER 31, 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
|
(Translation of Financial statements originally issued in Spanish - See Note 53) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
% over |
|
|
|
% over |
|
Number of customers |
|
Debt |
|
total |
|
Debt |
|
total |
|
|
|
balance |
|
portfolio |
|
balance |
|
portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10 largest customers |
|
90,783,954 |
|
9.78% |
|
65,771,242 |
|
7.09% |
|
50 following largest customers |
|
112,195,556 |
|
12.08% |
|
103,892,994 |
|
11.20% |
|
100 following largest customers |
|
66,399,121 |
|
7.15% |
|
66,788,532 |
|
7.20% |
|
All other customers |
|
659,109,994 |
|
70.99% |
|
691,420,757 |
|
74.51% |
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
928,488,625 |
|
100.00% |
|
927,873,525 |
|
100.00% |
|
|
|
|
|
|
|
|
|
EXHIBIT D |
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED WITH SUBSIDIARIES |
AS OF MARCH 31, 2023 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) (1) |
(Translation of Financial statements originally issued in Spanish - See Note 53) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Terms remaining to maturity |
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio |
1 |
3 |
6 |
12 |
24 |
more than |
|
ACCOUNT |
|
due |
month |
months |
months |
months |
months |
24 |
TOTAL |
|
|
|
|
|
|
|
|
months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-financial Government sector |
- |
2,874 |
- |
- |
- |
- |
- |
2,874 |
Financial Sector |
|
- |
1,541,730 |
1,604,067 |
554,576 |
1,772,360 |
5,323,475 |
1,706,083 |
12,502,291 |
Non-financial private sector and |
|
|
|
|
|
|
|
|
residents abroad |
|
10,338,267 |
418,945,896 |
136,471,986 |
102,307,507 |
117,552,979 |
96,067,756 |
163,439,119 |
1,045,123,510 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
10,338,267 |
420,490,500 |
138,076,053 |
102,862,083 |
119,325,339 |
101,391,231 |
165,145,202 |
1,057,628,675 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) These balances are total contractual flows and, therefore, include principal, accrued and to be accrued interest and charges. |
CONSOLIDATED WITH SUBSIDIARIES |
AS OF DECEMBER 31, 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) (1) |
(Translation of Financial statements originally issued in Spanish - See Note 53) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Terms remaining to maturity |
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio |
1 |
3 |
6 |
12 |
24 |
more than |
|
ACCOUNT |
|
due |
month |
months |
months |
months |
months |
24 |
TOTAL |
|
|
|
|
|
|
|
|
months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-financial Government sector |
- |
1,703 |
- |
- |
- |
- |
- |
1,703 |
B.C.R.A. |
|
- |
10,997 |
- |
- |
- |
- |
- |
10,997 |
Financial Sector |
|
- |
926,563 |
1,474,711 |
2,423,802 |
1,380,492 |
5,597,174 |
2,201,028 |
14,003,770 |
Non-financial private sector and |
|
|
|
|
|
|
|
|
residents abroad |
|
8,563,977 |
442,752,974 |
146,350,267 |
108,750,350 |
91,071,424 |
92,164,114 |
167,113,635 |
1,056,766,741 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
8,563,977 |
443,692,237 |
147,824,978 |
111,174,152 |
92,451,916 |
97,761,288 |
169,314,663 |
1,070,783,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) These balances are total contractual flows and, therefore, include principal, accrued and to be accrued interest and charges. |
|
|
|
|
|
|
|
EXHIBIT H |
|
|
|
|
|
|
|
|
DEPOSITS CONCENTRATION |
CONSOLIDATED WITH SUBSIDIARIES |
AS OF MARCH 31, 2023 AND DECEMBER 31, 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
|
(Translation of Financial statements originally issued in Spanish - See Note 53) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
% over |
|
|
% over |
Number of customers |
|
Debt |
total |
|
Debt |
total |
|
|
|
balance |
portfolio |
|
balance |
portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10 largest customers |
|
188,333,033 |
11.98% |
|
119,077,662 |
7.45% |
|
|
|
|
|
|
|
|
|
50 following largest customers |
|
184,698,269 |
11.75% |
|
171,750,656 |
10.74% |
|
|
|
|
|
|
|
|
|
100 following largest customers |
|
70,429,320 |
4.48% |
|
65,065,399 |
4.07% |
|
|
|
|
|
|
|
|
|
All other customers |
|
1,128,402,420 |
71.79% |
|
1,243,449,868 |
77.74% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
1,571,863,042 |
100.00% |
|
1,599,343,585 |
100.00% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT I |
BREAKDOWN OF FINANCIAL LIABILITIES BY REMAINING TERMS |
CONSOLIDATED WITH SUBSIDIARIES |
AS OF MARCH 31, 2023 |
|
(Amounts stated in thousands of Argentine pesos in constant currency - Note 2.1.5.) (1) |
|
(Translation of Financial statements originally issued in Spanish - See Note 53) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Terms remaining to maturity |
|
|
|
|
|
|
|
|
|
|
|
1 |
3 |
6 |
12 |
24 |
more than |
|
|
ACCOUNTS |
month |
months |
months |
months |
months |
24 |
TOTAL |
|
|
|
|
|
|
|
months |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
1,097,180,513 |
416,004,228 |
130,209,231 |
1,733,123 |
122,438 |
- |
1,645,249,533 |
|
Non-financial Government sector |
12,127,411 |
63,772 |
- |
- |
- |
- |
12,191,183 |
|
Financial Sector |
1,029,176 |
- |
- |
- |
- |
- |
1,029,176 |
|
Non-financial Private Sector and Residents Abroad |
1,084,023,926 |
415,940,456 |
130,209,231 |
1,733,123 |
122,438 |
- |
1,632,029,174 |
|
Derivative instruments |
520,841 |
- |
- |
- |
- |
- |
520,841 |
|
Other financial liabilities |
131,539,182 |
260,376 |
331,732 |
619,135 |
1,060,355 |
5,054,245 |
138,865,025 |
|
Financing received from the BCRA and
other financial institutions |
9,593,266 |
2,601,562 |
3,440,986 |
1,714,222 |
4,105,708 |
180,479 |
21,636,223 |
|
|
|
|
|
|
|
|
|
|
TOTAL |
1,238,833,802 |
418,866,166 |
133,981,949 |
4,066,480 |
5,288,501 |
5,234,724 |
1,806,271,622 |
|
|
|
|
|
|
|
|
|
|
(1) These balances are total contractual flows and, therefore, include principal, accrued and to be accrued interest and charges. |
BREAKDOWN OF FINANCIAL LIABILITIES BY REMAINING TERMS |
CONSOLIDATED WITH SUBSIDIARIES |
AS OF DECEMBER 31, 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency - Note 2.1.5.) (1) |
|
(Translation of Financial statements originally issued in Spanish - See Note 53) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Terms remaining to maturity |
|
|
|
|
|
|
|
|
|
|
|
1 |
3 |
6 |
12 |
24 |
more than |
|
|
ACCOUNTS |
month |
months |
months |
months |
months |
24 |
TOTAL |
|
|
|
|
|
|
|
months |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
1,374,423,719 |
127,891,779 |
128,804,250 |
1,645,257 |
94,553 |
- |
1,632,859,558 |
|
Non-financial Government sector |
11,688,885 |
164,311 |
- |
- |
- |
- |
11,853,196 |
|
Financial Sector |
413,901 |
- |
- |
- |
- |
- |
413,901 |
|
Non-financial Private Sector and Residents Abroad |
1,362,320,933 |
127,727,468 |
128,804,250 |
1,645,257 |
94,553 |
- |
1,620,592,461 |
|
Derivative instruments |
407,000 |
- |
- |
- |
- |
- |
407,000 |
|
Other financial liabilities |
142,275,047 |
341,130 |
453,911 |
724,812 |
1,273,743 |
5,927,590 |
150,996,233 |
|
Financing received from the BCRA and
other financial institutions |
16,912,603 |
1,923,957 |
4,730,980 |
2,865,184 |
2,692,727 |
215,055 |
29,340,506 |
|
Corporate bonds issued |
- |
232,731 |
- |
- |
- |
- |
232,731 |
|
|
|
|
|
|
|
|
|
|
TOTAL |
1,534,018,369 |
130,389,597 |
133,989,141 |
5,235,253 |
4,061,023 |
6,142,645 |
1,813,836,028 |
|
|
|
|
|
|
|
|
|
|
(1) These balances are total contractual flows and, therefore, include principal, accrued and to be accrued interest and charges. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT J |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISIONS |
|
CONSOLIDATED WITH SUBSIDIARIES |
|
AS OF MARCH 31, 2023 |
|
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
|
(Translation of Financial statements originally issued in Spanish - See Note 53) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decreases |
|
|
|
|
|
Accounts |
|
Balance at the beginning of the fiscal year |
|
Increases |
|
Reversals |
|
Uses |
|
Monetary gain (loss) generated by provisions |
|
Balances as of 03.31.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCLUDED IN LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Provisions for contingent commitments |
|
3,279,709 |
|
596,899 |
(1)(3) |
- |
|
- |
|
(605,942) |
|
3,270,666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- For administrative, disciplinary and criminal penalties |
|
6,087 |
|
- |
|
- |
|
- |
|
(1,087) |
|
5,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Provisions for termination plans |
|
552,685 |
|
- |
|
- |
|
- |
|
(98,668) |
|
454,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Other |
|
6,715,034 |
|
971,418 |
(2)(4) |
42,574 |
|
206,724 |
|
(1,262,838) |
|
6,174,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL PROVISIONS |
|
10,553,515 |
|
1,568,317 |
|
42,574 |
|
206,724 |
|
(1,968,535) |
|
9,903,999 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Set up in compliance with the provisions of Comunication "A" 6868 and supplementary regulations of the BCRA. |
(2) |
Set up to cover for potential contingencies not considered in other accounts (civil, commercial, labor and other lawsuits). |
(3) |
It includes an increase of 502 for exchange differences in foreign currency for contingent commitments. |
(4) |
It includes a decrease of 4,823 for subsidiary Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (undergoing liquidation proceedings) recorded under
Administrative expenses and for subsidiary BBVA Asset Management Argentina S.A. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISIONS |
|
CONSOLIDATED WITH SUBSIDIARIES |
|
AS OF DECEMBER 31, 2022 |
|
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
|
(Translation of Financial statements originally issued in Spanish - See Note 53) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decreases |
|
|
|
|
|
Accounts |
|
Balance at the beginning of the fiscal year |
|
Increases |
|
Reversals |
|
Uses |
|
Monetary gain (loss) generated by provisions |
|
Balances as of 12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCLUDED IN LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Provisions for contingent commitments |
|
2,024,234 |
|
2,489,198 |
(1)(4) |
- |
|
- |
|
(1,233,723) |
|
3,279,709 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- For administrative, disciplinary and criminal penalties |
|
11,857 |
|
- |
|
- |
|
- |
|
(5,770) |
|
6,087 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Provisiones por reorganización |
|
3,185,631 |
|
2,889,575 |
(3) |
277,371 |
|
4,507,970 |
|
(1,289,865) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Provisions for termination plans |
|
624,150 |
|
272,976 |
|
- |
|
- |
|
(344,441) |
|
552,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Other |
|
7,464,302 |
|
4,733,765 |
(2)(5) |
2,128 |
|
1,032,427 |
|
(4,448,478) |
|
6,715,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL PROVISIONS |
|
13,310,174 |
|
10,385,514 |
|
279,499 |
|
5,540,397 |
|
(7,322,277) |
|
10,553,515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Set up in compliance with the provisions of Comunication "A" 6868 and supplementary regulations of the BCRA. |
(2) |
Set up to cover for potential contingencies not considered in other accounts (civil, commercial, labor and other lawsuits). |
(3) |
See Note 23 to the Consolidated Financial Statements |
(4) |
It includes an increase of 3,243 for exchange differences in foreign currency for contingent commitments. |
(5) |
It includes a decrease of 583 for subsidiary Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (undergoing liquidation proceedings) recorded under Administrative expenses. |
|
|
|
|
|
|
|
|
EXHIBIT R |
|
|
|
|
|
|
|
|
|
ADJUSTMENT TO IMPAIRMENT LOSS - ALLOWANCES FOR LOAN LOSSES |
CONSOLIDATED WITH SUBSIDIARIES |
AS OF MARCH 31, 2023 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
(Translation of Financial statements originally issued in Spanish - See Note 53) |
|
|
|
|
|
|
|
|
|
|
|
|
|
ECL of remaining life of the financial asset |
|
|
|
Accounts |
|
Balance |
ECL for the |
|
|
Monetary |
|
Balance |
|
|
as of 12.31.22 |
following |
FI with significant |
FI with credit |
gain (loss) |
|
as of 03.31.23 |
|
|
|
12 months |
increase of |
impairment |
generated by |
|
|
|
|
|
|
credit risk |
|
allowances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial assets |
|
562,446 |
16,827 |
- |
28,282 |
(103,034) |
|
504,521 |
|
|
|
|
|
|
|
|
|
Loans and other financing |
|
25,429,540 |
767,805 |
1,928,197 |
3,477,080 |
(4,750,800) |
|
26,851,822 |
Other financial institutions |
|
283,704 |
(154,624) |
26,890 |
(821) |
(42,174) |
|
112,975 |
Non-financial Private Sector and Residents Abroad |
25,145,836 |
922,429 |
1,901,307 |
3,477,901 |
(4,708,626) |
|
26,738,847 |
Overdrafts |
|
1,269,008 |
290,318 |
99,812 |
(71,667) |
(238,622) |
|
1,348,849 |
Instruments |
|
928,950 |
165,441 |
78,310 |
16,600 |
(169,872) |
|
1,019,429 |
Mortgage loans |
|
2,087,857 |
(3,230) |
158,820 |
372,516 |
(411,050) |
|
2,204,913 |
Pledge loans |
|
928,873 |
23,323 |
4,261 |
(18,898) |
(143,672) |
|
793,887 |
Consumer loans |
|
4,989,784 |
184,346 |
167,906 |
1,242,889 |
(1,001,837) |
|
5,583,088 |
Credit Cards |
|
12,289,767 |
443,973 |
1,369,505 |
1,589,467 |
(2,327,915) |
|
13,364,797 |
Finance leases |
|
236,236 |
11,264 |
9,011 |
42,785 |
(43,937) |
|
255,359 |
Other |
|
2,415,361 |
(193,006) |
13,682 |
304,209 |
(371,721) |
|
2,168,525 |
|
|
|
|
|
|
|
|
|
Other debt securities |
|
39,060 |
13,688 |
- |
- |
(7,802) |
|
44,946 |
|
|
|
|
|
|
|
|
|
Contingent commitments |
|
3,279,709 |
514,697 |
59,576 |
22,626 |
(605,942) |
|
3,270,666 |
|
|
|
|
|
|
|
|
|
TOTAL ALLOWANCES |
|
29,310,755 |
1,313,017 |
1,987,773 |
3,527,988 |
(5,467,578) |
|
30,671,955 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTMENT TO IMPAIRMENT LOSS - ALLOWANCES FOR LOAN LOSSES |
CONSOLIDATED WITH SUBSIDIARIES |
AS OF DECEMBER 31, 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
(Translation of Financial statements originally issued in Spanish - See Note 53) |
|
|
|
|
|
|
|
|
|
|
|
|
|
ECL of remaining life of the financial asset |
|
|
|
Accounts |
|
Balance |
ECL for the |
|
|
Monetary |
|
Balance |
|
|
as of 12.31.21 |
following |
FI with significant |
FI with credit |
gain (loss) |
|
as of 12.31.22 |
|
|
|
12 months |
increase of |
impairment |
generated by |
|
|
|
|
|
|
credit risk |
|
allowances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial assets |
|
683,056 |
152,227 |
- |
137,385 |
(410,222) |
|
562,446 |
|
|
|
|
|
|
|
|
|
Loans and other financing |
|
32,374,929 |
3,767,213 |
3,585,666 |
1,551,918 |
(15,850,186) |
|
25,429,540 |
Other financial institutions |
|
98,781 |
226,505 |
223,378 |
(3,275) |
(261,685) |
|
283,704 |
Non-financial Private Sector and Residents Abroad |
32,276,148 |
3,540,708 |
3,362,288 |
1,555,193 |
(15,588,501) |
|
25,145,836 |
Overdrafts |
|
762,859 |
636,236 |
254,725 |
404,491 |
(789,303) |
|
1,269,008 |
Instruments |
|
1,425,104 |
226,145 |
(25,492) |
(19,531) |
(677,276) |
|
928,950 |
Mortgage loans |
|
1,743,187 |
79,221 |
320,628 |
1,032,520 |
(1,087,699) |
|
2,087,857 |
Pledge loans |
|
1,347,855 |
(286,425) |
21,252 |
369,159 |
(522,968) |
|
928,873 |
Consumer loans |
|
6,088,908 |
457,804 |
(20,743) |
1,648,745 |
(3,184,930) |
|
4,989,784 |
Credit Cards |
|
11,534,687 |
1,627,835 |
3,600,916 |
1,859,841 |
(6,333,512) |
|
12,289,767 |
Finance leases |
|
226,467 |
81,640 |
10,397 |
65,175 |
(147,443) |
|
236,236 |
Other |
|
9,147,081 |
718,252 |
(799,395) |
(3,805,207) |
(2,845,370) |
|
2,415,361 |
|
|
|
|
|
|
|
|
|
Other debt securities |
|
35,829 |
28,085 |
- |
- |
(24,854) |
|
39,060 |
|
|
|
|
|
|
|
|
|
Contingent commitments |
|
2,024,234 |
1,671,607 |
776,749 |
40,841 |
(1,233,722) |
|
3,279,709 |
|
|
|
|
|
|
|
|
|
TOTAL ALLOWANCES |
|
35,118,048 |
5,619,132 |
4,362,415 |
1,730,144 |
(17,518,984) |
|
29,310,755 |
SEPARATE CONDENSED STATEMENT OF FINANCIAL POSITION |
AS OF MARCH 31, 2023 AND DECEMBER 31, 2022 |
(stated in thousands of pesos constant currency - Note 2.1.5. to the consolidated financial statements) |
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes and Exhibits |
|
03.31.23 |
|
12.31.22 |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and deposits in banks |
4 |
|
373,940,336 |
|
360,170,986 |
|
|
|
|
|
|
|
|
|
|
Cash |
|
|
120,057,647 |
|
142,981,789 |
|
Financial institutions and correspondents |
|
|
253,882,689 |
|
217,189,197 |
|
BCRA |
|
|
244,477,856 |
|
196,355,179 |
|
Other in the country and abroad |
|
|
9,404,833 |
|
20,834,018 |
|
|
|
|
|
|
|
|
|
|
Debt securities at fair value through profit or loss |
5 and A |
|
28,316,671 |
|
31,066,037 |
|
|
|
|
|
|
|
|
|
|
Derivative instruments |
6 |
|
1,125,946 |
|
2,761,133 |
|
|
|
|
|
|
|
|
|
|
Repo transactions |
7 |
|
141,191,902 |
|
63,988,343 |
|
|
|
|
|
|
|
|
|
|
Other financial assets |
8 |
|
36,840,073 |
|
34,046,765 |
|
|
|
|
|
|
|
|
|
|
Loans and other financing |
9 |
|
814,963,589 |
|
830,066,633 |
|
|
|
|
|
|
|
|
|
|
Non-financial Government sector |
|
|
2,874 |
|
1,703 |
|
B.C.R.A. |
|
|
- |
|
10,997 |
|
Other financial institutions |
|
|
17,110,306 |
|
20,814,641 |
|
Non-financial Private Sector and Residents Abroad |
|
|
797,850,409 |
|
809,239,292 |
|
|
|
|
|
|
|
|
|
|
Other debt securities |
10 and A |
|
697,887,109 |
|
785,225,425 |
|
|
|
|
|
|
|
|
|
|
Financial assets pledged as collateral |
11 |
|
53,122,061 |
|
56,231,207 |
|
|
|
|
|
|
|
|
|
|
Investments in equity instruments |
13 and A |
|
1,214,554 |
|
1,142,271 |
|
|
|
|
|
|
|
|
|
|
Investments in subsidiaries and associates |
14 |
|
16,853,940 |
|
15,468,910 |
|
|
|
|
|
|
|
|
|
|
Property and equipment |
15 |
|
116,023,950 |
|
116,886,554 |
|
|
|
|
|
|
|
|
|
|
Intangible assets |
16 |
|
11,558,835 |
|
11,626,010 |
|
|
|
|
|
|
|
|
|
|
Other non-financial assets |
17 |
|
35,020,943 |
|
35,029,269 |
|
|
|
|
|
|
|
|
|
|
Non-current assets held for sale |
18 |
|
322,975 |
|
273,994 |
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
|
2,328,382,884 |
|
2,343,983,537 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes and exhibits are an integral part of these separate financial statements |
|
|
|
|
|
|
|
SEPARATE CONDENSED STATEMENT OF FINANCIAL POSITION |
AS OF MARCH 31, 2023 AND DECEMBER 31, 2022 |
(stated in thousands of pesos constant currency - Note 2.1.5. to the consolidated financial statements) |
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
Notes and Exhibits |
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
19 and H |
|
1,569,039,248 |
|
1,592,341,727 |
|
|
|
|
|
|
|
|
|
|
Non-financial Government sector |
|
|
12,038,345 |
|
11,783,852 |
|
Financial Sector |
|
|
5,833,703 |
|
740,739 |
|
Non-financial Private Sector and Residents Abroad |
|
|
1,551,167,200 |
|
1,579,817,136 |
|
|
|
|
|
|
|
|
|
|
Derivative instruments |
6 |
|
520,841 |
|
407,000 |
|
|
|
|
|
|
|
|
|
|
Other financial liabilities |
21 |
|
131,423,648 |
|
142,073,312 |
|
|
|
|
|
|
|
|
|
|
Financing received from the BCRA and other financial institutions |
22 |
|
1,721,815 |
|
3,697,736 |
|
|
|
|
|
|
|
|
|
|
Current income tax liabilities |
12 b) |
|
14,912,379 |
|
7,955,157 |
|
|
|
|
|
|
|
|
|
|
Provisions |
J |
|
9,788,172 |
|
10,378,297 |
|
|
|
|
|
|
|
|
|
|
Deferred income tax liabilities |
12 c) |
|
5,670,815 |
|
8,145,808 |
|
|
|
|
|
|
|
|
|
|
Other non-financial liabilities |
24 |
|
142,100,219 |
|
140,163,397 |
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
|
1,875,177,137 |
|
1,905,162,434 |
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
|
|
|
Share capital |
26 |
|
612,710 |
|
612,710 |
|
Non-capitalized contributions |
|
|
94,443,032 |
|
94,443,032 |
|
Capital adjustments |
|
|
68,298,147 |
|
68,298,147 |
|
Reserves |
|
|
212,985,502 |
|
212,985,502 |
|
Retained earnings |
|
|
71,609,927 |
|
13,091 |
|
Other accumulated comprehensive income/(loss) |
|
|
(9,772,389) |
|
(9,128,215) |
|
Income for the period / year |
|
|
15,028,818 |
|
71,596,836 |
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY |
|
|
453,205,747 |
|
438,821,103 |
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
|
|
2,328,382,884 |
|
2,343,983,537 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes and exhibits are an integral part of these separate financial statements |
|
|
|
|
|
|
|
SEPARATE CONDENSED STATEMENT OF INCOME |
FOR THE THREE-MONTH INTERIM PERIODS ENDED MARCH 31, 2023 AND 2022 |
(stated in thousands of pesos constant currency - Note 2.1.5. to the consolidated financial statements) |
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes and Exhibits |
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
|
|
|
Interest income |
|
|
27 |
|
241,970,843 |
|
136,189,248 |
Interest expense |
|
|
28 |
|
(115,036,782) |
|
(58,853,917) |
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
126,934,061 |
|
77,335,331 |
|
|
|
|
|
|
|
|
Commission income |
|
29 |
|
19,892,414 |
|
24,719,985 |
Commission expenses |
|
30 |
|
(10,532,809) |
|
(12,826,982) |
|
|
|
|
|
|
|
|
Net commission income |
|
|
|
9,359,605 |
|
11,893,003 |
|
|
|
|
|
|
|
|
Net income from measurement of financial instruments at fair value through profit or loss |
31 |
|
6,406,223 |
|
7,960,519 |
Net income (loss) from write-down of assets at amortized cost and at fair value through OCI |
32 |
|
38,326 |
|
(69,962) |
Foreing exchange and gold gains/(losses) |
|
33 |
|
1,124,967 |
|
3,503,814 |
Other operating income |
|
34 |
|
5,317,630 |
|
6,893,156 |
Loan loss allowance |
|
|
|
(8,069,417) |
|
(4,394,422) |
|
|
|
|
|
|
|
|
Net operating income |
|
|
|
141,111,395 |
|
103,121,439 |
|
|
|
|
|
|
|
|
Personnel benefits |
|
35 |
|
(21,637,350) |
|
(18,149,030) |
Administrative expenses |
|
36 |
|
(23,616,009) |
|
(19,135,666) |
Asset depreciation and impairment |
|
37 |
|
(2,787,518) |
|
(3,313,593) |
Other operating expenses |
|
38 |
|
(19,287,043) |
|
(15,152,895) |
|
|
|
|
|
|
|
|
Operating income |
|
|
|
73,783,475 |
|
47,370,255 |
|
|
|
|
|
|
|
|
Loss from associates and joint ventures |
|
|
|
958,609 |
|
(57,716) |
Loss on net monetary position |
|
|
|
(53,676,288) |
|
(35,706,518) |
|
|
|
|
|
|
|
|
Income before income tax |
|
|
|
21,065,796 |
|
11,606,021 |
|
|
|
|
|
|
|
|
Income Tax |
|
|
12. d) |
|
(6,036,978) |
|
(3,052,872) |
|
|
|
|
|
|
|
|
Net income for the period |
|
|
|
15,028,818 |
|
8,553,149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes and exhibits are an integral part of these separate financial statements |
SEPARATE CONDENSED STATEMENT OF INCOME |
FOR THE THREE-MONTH INTERIM PERIODS ENDED MARCH 31, 2023 AND 2022 |
EARNINGS PER SHARE |
(stated in thousands of pesos constant currency - Note 2.1.5. to the consolidated financial statements) |
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
Accounts |
|
|
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to owners of the Parent |
|
|
15,028,818 |
|
8,553,149 |
Net income attributable to owners of the Parent adjusted to reflect the effect of dilution |
|
|
15,028,818 |
|
8,553,149 |
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average of outstanding common shares for the period |
|
|
612,710,079 |
|
612,710,079 |
Weighted average of outstanding common shares for the period adjusted to reflect the effect of dilution |
|
|
612,710,079 |
|
612,710,079 |
|
|
|
|
|
|
|
|
Basic earnings per share (stated in thousands of pesos) |
|
|
24.5284 |
|
13.9595 |
Diluted earnings per share (stated in thousands of pesos) (1) |
|
|
24.5284 |
|
13.9595 |
| (1)As | Banco BBVA Argentina S.A. has not issued financial instruments with dilution effects
on earnings per share, basic earnings and diluted earnings per share are equal. |
SEPARATE STATEMENT OF OTHER COMPREHENSIVE INCOME |
FOR THE THREE-MONTH INTERIM PERIODS ENDED MARCH 31, 2023 AND 2022 |
(stated in thousands of pesos constant currency - Note 2.1.5. to the consolidated financial statements) |
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note |
|
03.31.23 |
03.31.22 |
|
|
|
|
|
Net income for the period |
|
|
15,028,818 |
8,553,149 |
|
|
|
|
|
Other comprehesive income components not to be reclassified to income/(loss) for the period: |
|
|
|
|
|
|
|
|
|
Share in Other Comprehensive Income from associates and joint ventures at equity method |
|
|
|
|
|
|
|
|
|
Share in Other Comprehensive Income from associates and joint ventures at equity method |
|
|
(10) |
- |
|
|
|
|
|
|
|
|
(10) |
- |
|
|
|
|
|
Profit or losses from financial instruments at fair value through OCI |
|
|
|
|
|
|
|
|
|
Profit or losses from financial instruments at fair value through OCI |
|
|
(2,165,649) |
3,837,673 |
Reclassification adjustment for the period |
|
|
2,133,079 |
69,961 |
Income Tax |
12.d) |
|
(602,679) |
(1,185,522) |
|
|
|
|
|
|
|
|
(635,249) |
2,722,112 |
|
|
|
|
|
Other comprehesive income components not to be reclassified to income/(loss) for the period: |
|
|
|
|
|
|
|
|
|
Income or loss on equity instruments at fair value through OCI (IFRS 9, paragraph 5.7.5) |
|
|
|
|
|
|
|
|
|
Loss for the period from equity instruments at fair value through OCI |
|
|
(8,915) |
(16,219) |
|
|
|
|
|
|
|
|
(8,915) |
(16,219) |
|
|
|
|
|
Total Other Comprehensive Income/(loss) for the period |
|
|
(644,174) |
2,705,893 |
|
|
|
|
|
Total Comprehensive Income |
|
|
14,384,644 |
11,259,042 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes and exhibits are an integral part of these separate financial statements |
SEPARATE STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY |
FOR THE THREE-MONTH INTERIM PERIOD ENDED MARCH 31, 2022 |
(stated in thousands of pesos constant currency - Note 2.1.5. to the consolidated financial statements) |
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
|
Share |
|
Non-capitalized |
|
|
|
Other Comprehensive |
|
|
|
|
|
|
Capital |
|
contributions |
|
|
|
Income |
|
Reserves |
|
|
|
Transactions |
|
Outstanding shares |
|
Share premium |
|
Adjustments to equity |
|
Loss on financial instruments at fair value through OCI |
Other |
|
Legal |
Other |
Reserves |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restated balances at the beginning of the year |
612,710 |
|
94,443,032 |
|
68,298,147 |
|
1,785,064 |
(132,710) |
|
80,632,468 |
85,709,448 |
46,644,337 |
|
377,992,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of the implementation of the financial reporting framework established by the BCRA - IFRS 9, paragraph 5.5 for Related Companies |
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
52,084 |
|
52,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted balance at the beginning of the year |
|
612,710 |
|
94,443,032 |
|
68,298,147 |
|
1,785,064 |
(132,710) |
|
80,632,468 |
85,709,448 |
46,696,421 |
|
378,044,580 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Net income/(loss) for the period |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
8,553,149 |
|
8,553,149 |
- Other comprehensive income for the period |
|
- |
|
- |
|
- |
|
2,705,893 |
- |
|
- |
- |
- |
|
2,705,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at fiscal period end |
|
612,710 |
|
94,443,032 |
|
68,298,147 |
|
4,490,957 |
(132,710) |
|
80,632,468 |
85,709,448 |
55,249,570 |
|
389,303,622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes and exhibits are an integral part of these separate financial statements |
SEPARATE STATEMENT OF CASH FLOWS |
FOR THE THREE-MONTH INTERIM PERIODS ENDED MARCH 31, 2023 AND 2022 |
(stated in thousands of pesos constant currency - Note 2.1.5. to the consolidated financial statements) |
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
Accounts |
|
03.31.23 |
|
03.31.22 |
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Income before income tax |
21,065,796 |
|
11,606,021 |
|
|
|
|
|
Adjustment for total monetary income for the period |
|
53,676,288 |
|
35,706,518 |
|
|
|
|
|
Adjustments to obtain cash flows from operating activities: |
4,706,771 |
|
4,753,683 |
|
|
|
|
|
Depreciation and amortization |
2,787,518 |
|
3,313,593 |
Loan loss allowance |
8,069,417 |
|
4,394,422 |
Effect of foreign exhange changes on cash and cash equivalents |
|
(9,194,835) |
|
(851,308) |
Loss for the sale of Prisma Medios de Pagos S.A. |
|
- |
|
(5,342,456) |
Other adjustments |
3,044,671 |
|
3,239,432 |
|
|
|
|
|
Net increases from operating assets: |
(324,040,651) |
|
(305,265,754) |
|
|
|
|
|
Debt securities at fair value through profit or loss |
(3,799,478) |
|
(20,649,859) |
Derivative instruments |
1,309,273 |
|
3,878,277 |
Repo transactions |
(95,967,154) |
|
162,863,053 |
Loans and other financing |
(148,406,566) |
|
(52,247,149) |
Non-financial Government sector |
(1,740) |
|
443 |
Other financial institutions |
730,216 |
|
496,992 |
Non-financial Private Sector and Residents Abroad |
(149,135,042) |
|
(52,744,584) |
Other debt securities |
(52,711,951) |
|
(383,134,694) |
Financial assets pledged as collateral |
(8,528,599) |
|
(6,086,244) |
Investments in equity instruments |
(329,836) |
|
(107,011) |
Other assets |
(15,606,340) |
|
(9,782,127) |
|
|
|
|
|
Net increases from operating liabilities: |
326,777,911 |
|
221,330,064 |
|
|
|
|
|
Deposits |
274,901,694 |
|
191,281,107 |
Non-financial Government sector |
2,302,753 |
|
8,961,039 |
Financial Sector |
5,537,076 |
|
137,056 |
Non-financial Private Sector and Residents Abroad |
267,061,865 |
|
182,183,012 |
Liabilities at fair value through profit or loss |
4,639 |
|
41 |
Derivative instruments |
192,365 |
|
85,500 |
Other liabilities |
51,679,213 |
|
29,963,416 |
|
|
|
|
|
Income tax paid |
(82,327) |
|
- |
|
|
|
|
|
Net cash generated by / (used in) operating activities |
|
82,103,788 |
|
(31,869,468) |
SEPARATE STATEMENT OF CASH FLOWS |
FOR THE THREE-MONTH INTERIM PERIODS ENDED MARCH 31, 2023 AND 2022 |
(stated in thousands of pesos constant currency - Note 2.1.5. to the consolidated financial statements) |
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
Accounts |
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
Payments: |
(2,220,574) |
|
(2,570,870) |
|
|
|
|
|
Purchase of property and equipment, intangible assets and other assets |
(1,794,148) |
|
(2,248,169) |
Other payments related to investing activities |
(426,426) |
|
(322,701) |
|
|
|
|
|
Total cash flows used in investing activities |
(2,220,574) |
|
(2,570,870) |
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
Payments: |
(2,105,899) |
|
(3,250,922) |
|
|
|
|
|
Argentine Central Bank (BCRA) |
(29,174) |
|
- |
Financing from local financial institutions |
|
(2,056,329) |
|
(2,546,828) |
Leases |
|
(20,396) |
|
(704,094) |
|
|
|
|
|
Collections: |
109,579 |
|
11,251 |
|
|
|
|
|
Argentine Central Bank (BCRA) |
- |
|
11,251 |
Other collections related to financing activities |
109,579 |
|
- |
|
|
|
|
|
Total cash flows used in financing activities |
(1,996,320) |
|
(3,239,671) |
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
9,194,835 |
|
851,308 |
Effect of net monetary income/(loss) of cash and cash equivalents |
|
(73,312,379) |
|
(74,232,588) |
|
|
|
|
|
Total changes in cash flows |
13,769,350 |
|
(111,061,289) |
Restated cash and cash equivalents at the beginning of the year |
|
360,170,986 |
|
517,028,548 |
Cash and cash equivalents at fiscal period-end |
|
373,940,336 |
|
405,967,259 |
|
|
|
|
|
Notes and exhibits are an integral part of these separate financial statements |
|
|
|
|
NOTES TO THE SEPARATE CONDENSED INTERIM
FINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Amounts stated in thousands of Argentine
pesos in constant currency –Note 2.1.5. to the consolidated condensed interim financial statements)
(Translation of Financial statements
originally issued in Spanish - See Note 43)
| 1. | Basis for the preparation of separate financial
statements |
As mentioned in Note 2 to the consolidated condensed
interim financial statements, the Bank presents consolidated financial statements in accordance with the financial reporting framework
set forth by the BCRA.
These financial statements of the Bank are supplementary
to the consolidated condensed interim financial statements mentioned above and are intended for the purposes of complying with legal and
regulatory requirements.
| 2. | Basis for the preparation of these financial
statements and applicable accounting standards |
These separate condensed interim financial statements
of the Bank were prepared in accordance with the financial reporting framework set forth by the BCRA. (Communication “A” 6114
of the BCRA, as supplemented). Except for the exceptions established by the BCRA which are explained in the following paragraph, such
framework is based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB)
and adopted by the Argentine Federation of Professionals Councils in Economic Sciences (FACPCE, for its acronym in Spanish). The abovementioned
international standards include the IFRS, the International Accounting Standards (IAS) and the interpretations developed by the IFRS Interpretations
Committee (IFRIC) or former IFRIC (SIC).
Out of the exceptions set forth by the BCRA to the application
of current IFRS, the following affect the preparation of these separate condensed interim financial statements:
| a) | Within the framework of the convergence process to IFRS established by Communication “A” 6114,
as amended and supplemented, the BCRA provided that for fiscal years starting on or after January 1, 2020, financial institutions defined
as “Group A” according to BCRA regulations, as such is the case of the Entity, are required to start to apply paragraph 5.5
“Impairment” of IFRS 9 “Financial Instruments” (paragraphs B5.5.1 through B5.5.55) except for exposures to the
public sector, considering the exclusion set forth by Communication “A” 6847. |
Had the abovementioned paragraph 5.5. “Impairment”
been applied in full, according to a global estimate made by the Entity, as of March 31, 2023 and December 31, 2022, its shareholders’
equity would have been reduced by 4,865,604 and 5,456,725, respectively.
| b) | In March 2022, the transfer of the equity instruments corresponding to the remaining interest in Prisma
Medios de Pago S.A. was made, which instruments were measured at fair value as set forth in Memorandum dated April 29, 2019 and March
22, 2021 received by the BCRA, and the income (loss) from their sale was recorded in the quarter ended March 31, 2022. Had the IFRS been
applied in order to determine the fair value above mentioned, the income (loss) for the three-month period ended March 31, 2022 would
have changed. However, this situation did not generate
differences as regards the shareholders’ equity value as of December 31, 2022. |
Except for what was mentioned in the previous paragraphs,
the accounting policies applied by the Entity comply with the IFRS that have been currently approved and are applicable in the preparation
of these separate condensed interim financial statements in accordance with the IFRS as adopted by the BCRA as per Communication “A”
7411. In general, the BCRA does not allow the early application of any IFRS, unless otherwise specified.
Furthermore, the BCRA, through Communications “A”
6323 and 6324, set forth guidelines for the preparation and presentation of the financial statements of financial institutions for fiscal
years beginning on or after January 1, 2018, including the additional reporting requirements as well as the information to be submitted
as Exhibits.
As this is an interim period, the Entity has opted to
present condensed information, pursuant to the guidelines of IAS 34 “Interim Financial Information”; therefore, not all the
information required for the preparation of complete financial statements under IFRS is included. Therefore, these financial statements
should be read jointly with the financial statements as of December 31, 2022. However, explanatory notes of events and transactions that
are material for understanding any changes in the financial position as from December 31, 2022 are included.
To avoid duplication of information already provided,
we refer to the consolidated condensed interim financial statements regarding:
| - | Measuring unit (Nota 2.1.5. to the consolidated condensed
interim financial statements) |
| - | Summary of Significant accounting
policies (Note 2.3 to the consolidated condensed interim financial statements), except for the measurement of ownership interests in
subsidiaries |
| - | Accounting judgments, estimates and
assumptions (Note 2.4. to the consolidated condensed interim financial statements) |
| - | Regulatory changes introduced during this fiscal
year y New pronouncements (Note 2.5. and 2.6. respectively, to the consolidated condensed interim financial statements) |
| - | Transcription to the books (Nota 2.7. to
the consolidated condensed interim financial statements) |
| - | Provisions (Note 23 to the consolidated
condensed interim financial statements) |
| - | Fair values of financial instruments
(Note 39 to the consolidated condensed interim financial statements) |
| - | Segment reporting (Note 40 to the
consolidated condensed interim financial statements) |
| - | Banking deposits guarantee insurance
system (Note 45 to the consolidated condensed interim financial statements) |
| - | Compliance with the provisions to act in
the different categories of agent defined by the Argentine Securities Commission (Note 47 to the consolidated condensed interim
financial statements) |
| - | Trust activities (Note 49 to the
consolidated condensed interim financial statements) |
| - | Mutual funds (Note 50 to the consolidated condensed
interim financial statements) |
| - | Penalties and administrative proceedings
instituted by the BCRA (Note 51 to the consolidated condensed interim financial statements) |
| - | Subsequent events (Note 52 to the
consolidated condensed interim financial statements) |
| 3. | Significant accounting policies |
Investments in subsidiaries
Subsidiaries are all entities controlled by the
Bank. The Bank controls an entity if it is exposed to, or has rights to, variable returns from its involvement with the entity and has
the ability to affect those returns through its power over the entity. The Bank reassesses whether it has control when there are changes
to one or more of the elements of control.
Ownership interests in subsidiaries are accounted
for using the equity method. They are initially recognized at cost, which includes transaction costs. After initial recognition, the financial
statements include the Bank's share in the profit or loss and OCI of investments accounted for using the equity method, until the date
when the control, significant influence or joint control cease.
The interim financial statements as of March 31,
2023 of the subsidiaries BBVA Asset Management Argentina S.A.U. and Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A.
(under liquidation proceedings) were adjusted considering the financial reporting framework set forth by the BCRA in order to present
financial information in constant terms.
| 4. | Cash and deposits in banks |
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
BCRA - Current account |
|
244,477,856 |
|
196,355,179 |
Cash |
|
120,057,647 |
|
142,981,789 |
Balances with other local and foreign financial institutions |
|
9,404,833 |
|
20,834,018 |
|
|
|
|
|
TOTAL |
|
373,940,336 |
|
360,170,986 |
| 5. | Debt securities at fair value through profit
or loss |
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
BCRA Liquidity Bills |
|
19,793,524 |
|
17,791,699 |
Government securities |
|
8,523,147 |
|
13,274,338 |
|
|
|
|
|
TOTAL |
|
28,316,671 |
|
31,066,037 |
In the ordinary course of business, the group carried
out foreign currency forward transactions with daily or upon-maturity settlement of differences, with no delivery of the underlying asset
and interest rate swap transactions and options. These transactions do not qualify as hedging pursuant to IFRS 9 - “Financial Instruments”.
The aforementioned instruments are measured at fair value
and were recognized in the Statement of Financial Position in the item “Derivative instruments”. Changes in fair values were
recognized in the Statement of Income in “Net income from measurement of financial instruments at fair value through profit or loss”.
Breakdown is as follows:
Assets
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Debit balances linked to foreign currency forwards pending settlement in pesos |
|
799,947 |
|
2,665,011 |
Income from put options taken (1) |
|
310,450 |
|
59,870 |
Debit balances linked to interest rate swaps - floating rate for fixed rate |
|
15,549 |
|
36,252 |
|
|
|
|
|
TOTAL |
|
1,125,946 |
|
2,761,133 |
| (1) | In particular, the Entity subscribed for options as set forth in Communication “A” 7546 issued by the BCRA. |
Liabilities
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Credit balances linked to foreign currency forwards pending settlement in pesos |
|
509,179 |
|
407,000 |
Credit balances linked to interest rate swaps - floating rate for fixed rate |
|
11,662 |
|
- |
|
|
|
|
|
TOTAL |
|
520,841 |
|
407,000 |
The notional amounts of the forward transactions
and foreign currency forwards, stated in US Dollars (US$) and in Euros as applicable, as well as the base value of interest rate swaps
and put options taken are reported below:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Foreign currency forwards |
|
|
|
|
|
|
|
|
|
Foreign currency forward purchases - US$ |
|
797,063 |
|
1,165,119 |
Foreign currency forward sales - US$ |
|
814,118 |
|
1,217,856 |
Foreign currency forward sales - Euros |
|
6,925 |
|
1,825 |
|
|
|
|
|
Interest rate swaps |
|
|
|
|
|
|
|
|
|
Fixed rate for floating rate (1) |
|
1,500,000 |
|
1,500,000 |
|
|
|
|
|
Put options: |
|
|
|
|
|
|
|
|
|
Put options taken |
|
47,830,810 |
|
- |
| (1) | Floating rate: Badlar
rate, interest rate for deposits over one million pesos, for a term of 30 to 35 days. |
Reverse repurchase transactions
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Amounts receivable for reverse repurchase transactions of BCRA bills with the BCRA |
|
141,191,902 |
|
63,988,343 |
|
|
|
|
|
TOTAL |
|
141,191,902 |
|
63,988,343 |
Repurchase transactions
No repurchase transactions were accounted for as
of March 31, 2023 and December 31, 2022.
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Measured at amortized cost |
|
|
|
|
|
|
|
|
|
Other receivables |
|
15,680,634 |
|
15,666,255 |
Receivables from sale of ownership interest in Prisma Medios de Pago S.A. |
|
12,709,544 |
|
13,145,891 |
Financial debtors from spot transactions pending settlement |
|
7,335,270 |
|
5,561,967 |
Non-financial debtors from spot transactions pending settlement |
|
1,511,654 |
|
106,857 |
Other |
|
54,860 |
|
72,781 |
|
|
|
|
|
|
|
37,291,962 |
|
34,553,751 |
|
|
|
|
|
Allowance for loan losses (Exhibit R) |
|
(451,889) |
|
(506,986) |
|
|
|
|
|
TOTAL |
|
36,840,073 |
|
34,046,765 |
| 9. | Loans and other financing |
The Bank holds loans and other financing under a business
model for the purpose of collecting contractual cash flows. Therefore, it measures loans and other financing at amortized cost. Below
is a breakdown of the related balance:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Credit Cards |
|
320,883,576 |
|
334,200,517 |
Overdrafts |
|
107,647,656 |
|
76,627,339 |
Consumer loans |
|
91,468,115 |
|
86,563,369 |
Unsecured instruments |
|
77,744,367 |
|
70,852,957 |
Discounted instruments |
|
65,685,698 |
|
71,223,969 |
Mortgage loans |
|
43,721,019 |
|
46,879,105 |
Loans for the prefinancing and financing of exports |
|
32,659,362 |
|
30,522,170 |
Other financial institutions |
|
18,111,665 |
|
21,911,382 |
Pledge loans |
|
10,978,727 |
|
10,707,743 |
Receivables from finance leases |
|
6,168,668 |
|
6,772,795 |
Loans to personnel |
|
5,465,752 |
|
5,862,631 |
Instruments purchased |
|
1,490,674 |
|
1,188,431 |
BCRA |
|
- |
|
10,997 |
Non-financial government sector |
|
2,874 |
|
1,703 |
Other financing |
|
60,018,817 |
|
92,191,889 |
|
|
|
|
|
|
|
842,046,970 |
|
855,516,997 |
|
|
|
|
|
Allowance for loan losses (Exhibit R) |
|
(27,083,381) |
|
(25,450,364) |
|
|
|
|
|
TOTAL |
|
814,963,589 |
|
830,066,633 |
The Bank entered into finance lease agreements related
to vehicles and machinery and equipment. The following table shows the total gross investment in the finance leases (lease-purchase agreement)
and the current value of the minimum collections to be received thereunder:
|
|
03.31.23 |
|
12.31.22 |
Term |
|
Total
investment |
Current value of minimum payments |
|
Total
investment |
Current value of minimum payments |
|
|
|
|
|
|
|
Up to 1 year |
|
3,790,973 |
1,498,346 |
|
3,890,864 |
1,584,470 |
From 1 to 2 years |
|
3,692,612 |
1,785,403 |
|
3,846,612 |
1,937,486 |
From 2 to 3 years |
|
2,838,501 |
1,659,868 |
|
3,094,889 |
1,875,415 |
From 3 to 4 years |
|
1,639,831 |
1,137,136 |
|
1,824,020 |
1,292,681 |
From 4 to 5 years |
|
123,574 |
87,915 |
|
116,219 |
82,743 |
|
|
|
|
|
|
|
TOTAL |
|
12,085,491 |
6,168,668 |
|
12,772,604 |
6,772,795 |
|
|
|
|
|
|
|
Share |
|
|
6,005,437 |
|
|
6,589,975 |
Interest accrued |
|
|
163,231 |
|
|
182,820 |
|
|
|
|
|
|
|
TOTAL |
|
|
6,168,668 |
|
|
6,772,795 |
A breakdown of loans and other financing according
to credit quality standing pursuant to applicable standards issued by the BCRA is detailed in Exhibit B, while the information on the
concentration of loans and other financing is presented in Exhibit C to these separate financial statements. The reconciliation of the
information included in those Exhibits with the accounting balances is included below.
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Total Exhibit B and C |
|
887,211,427 |
|
881,878,228 |
Plus: |
|
|
|
|
B.C.R.A. |
|
- |
|
10,997 |
Loans to personnel |
|
5,465,752 |
|
5,862,631 |
Interest and other items accrued receivable from
financial assets with credit value impairment |
|
294,213 |
|
249,221 |
|
|
|
|
|
Less: |
|
|
|
|
Allowance for loan losses (Exhibit R) |
|
(27,083,381) |
|
(25,450,364) |
Adjustments for effective interest rate |
|
(4,869,516) |
|
(5,014,093) |
Corporate Bonds |
|
(4,872,948) |
|
(4,605,358) |
Loan commitments |
|
(41,181,958) |
|
(22,864,629) |
|
|
|
|
|
Total loans and other financing |
|
814,963,589 |
|
830,066,633 |
Note 42.2 to the consolidated condensed interim financial
statements contains information on credit risk associated with loans and other financing and allowances measured using the expected credit
loss model.
As of March 31, 2023 and December 31, 2022, the Bank
holds the loan commitments booked in off-balance sheet accounts according to the financial reporting framework set forth by the BCRA:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Guarantees granted |
|
11,832,473 |
|
1,873,909 |
Secured loans |
|
10,470,090 |
|
8,093,676 |
Overdrafts and receivables agreed not used |
|
9,965,282 |
|
2,581,141 |
Liabilities related to foreign trade transactions |
|
8,914,113 |
|
10,315,903 |
|
|
|
|
|
TOTAL |
|
41,181,958 |
|
22,864,629 |
Risks related to the aforementioned loan commitments
are assessed and controlled within the framework of the Bank's credit risks policy.
| a) | Financial assets measured at amortized cost |
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Argentine Treasury Bond in pesos at 43.25% fixed rate or CER+1%, the lower. Maturity May 2027 |
|
35,773,123 |
|
39,481,044 |
Argentine Treasury Bonds in pesos at 0.7% Badlar Private Rate. Maturity 11-23-2027 |
|
14,173,949 |
|
14,722,815 |
TOTAL |
|
49,947,072 |
|
54,203,859 |
| b) | Financial assets measured at fair value
through OCI |
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
BCRA Liquidity Bills |
|
508,842,594 |
|
570,723,318 |
Government securities |
|
131,834,508 |
|
153,178,765 |
Private securities - Corporate bonds |
|
4,796,873 |
|
4,532,014 |
BCRA Local Bills |
|
2,466,062 |
|
2,587,469 |
|
|
|
|
|
|
|
647,940,037 |
|
731,021,566 |
| 11. | Financial assets pledged as collateral |
As of March 31, 2023 and December 31, 2022, the Bank
pledged as collateral the following financial assets:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Guarantee trust - Government securities at fair value through OCI |
(1) |
24,267,386 |
|
20,328,610 |
BCRA - Special guarantee accounts (Note 42.1) |
(2) |
19,209,787 |
|
16,879,821 |
Deposits as collateral |
(3) |
9,638,733 |
|
10,024,974 |
Guarantee trust - USD |
(4) |
6,155 |
|
8,997,802 |
TOTAL |
|
53,122,061 |
|
56,231,207 |
| (1) | Set up as collateral to operate with Rosario Futuros Exchange (ROFEX), Bolsas y Mercados Argentinos S.A.
(BYMA) and Mercado Abierto Electrónico S.A. (MAE) on foreign currency forward transactions and futures contracts. The trust fund
consists of government securities. |
| (2) | Special guarantee current accounts opened at the BCRA for transactions related to the automated clearing
houses and other similar entities. |
| (3) | Deposits pledged as collateral for activities related to credit card transactions in the country and abroad
and leases. |
| (4) | The trust is composed of dollars in cash as collateral for activities related to the transactions on MAE
and BYMA. |
This tax should be booked using the liability
method, recognizing (as credit or debt) the tax effect of temporary differences between the accounting valuation and the tax valuation
of assets and liabilities, and its subsequent allocation to income or loss for the year in which its reversion occurs, also considering
the possibility of taking advantage of tax losses in the future.
| a) | Current income tax assets |
No transactions were accounted for in the period/year
ended March 31, 2023 and December 31, 2022.
| b) | Current income tax liabilities |
Below is a breakdown of the current income tax
liabilities disclosed in the separate condensed statement of financial position:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Income tax provision |
|
15,239,600 |
|
8,350,348 |
Advances |
|
(306,408) |
|
(372,998) |
Collections and withholdings |
|
(20,813) |
|
(22,193) |
|
|
|
|
|
|
|
14,912,379 |
|
7,955,157 |
The deferred tax assets and liabilities disclosed in
the separate condensed statement of financial position are as follows:
Deferred tax assets: |
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Allowance for loan losses |
|
8,780,623 |
|
5,733,129 |
Provisions |
|
16,728,161 |
|
15,355,877 |
Loan and credit card commissions |
|
1,516,713 |
|
1,486,393 |
Tax inflation adjustment |
|
1,849,118 |
|
2,572,542 |
Other |
|
22 |
|
52 |
|
|
|
|
|
Total deferred assets |
|
28,874,637 |
|
25,147,993 |
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Intangible assets |
|
(6,192,521) |
|
(5,890,117) |
Property and equipment |
|
(15,684,108) |
|
(15,806,035) |
Investments |
|
(12,668,823) |
|
(11,597,649) |
|
|
|
|
|
Total deferred liabilities |
|
(34,545,452) |
|
(33,293,801) |
|
|
|
|
|
Net deferred tax liabilities |
|
(5,670,815) |
|
(8,145,808) |
Below are the main components of the income tax expense
in the separate condensed financial statements:
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Current income tax expense |
|
(9,114,650) |
|
(63,257) |
Income/ (loss) on deferred income tax |
|
3,077,672 |
|
(2,989,615) |
|
|
|
|
|
Income tax recognized through profit or loss |
|
(6,036,978) |
|
(3,052,872) |
|
|
|
|
|
Income tax recognized through OCI |
|
(602,679) |
|
(1,185,522) |
|
|
|
|
|
Total income tax |
|
(6,639,657) |
|
(4,238,394) |
The Bank's effective tax rate calculated on the income
tax recognized in the income statement for the period ended March 31, 2023 and 2022 was 29% and 26%, respectively.
The policy on the recognition of income tax for interim
periods is described in Note 11.d) to the consolidated condensed interim financial statements.
| 13. | Investments in equity instruments |
Breakdown is as follows:
13.1 Investments in equity instruments
through profit or loss
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Private securities - Shares of other non-controlled companies |
|
1,138,262 |
|
1,068,662 |
|
|
|
|
|
TOTAL |
|
1,138,262 |
|
1,068,662 |
13.2 Investments in equity instruments
through other comprehensive income
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Banco Latinoaméricano de Exportaciones S.A. |
|
73,449 |
|
70,636 |
Other |
|
2,843 |
|
2,973 |
|
|
|
|
|
TOTAL |
|
76,292 |
|
73,609 |
| 14. | Investments in subsidiaries and associates |
The Bank has investments in the following entities
over which it has a control or significant influence which are measured by applying the equity method:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
BBVA Asset Management Argentina S.A.U. Sociedad Gerente de Fondos Comunes de Inversión |
|
5,532,665 |
|
4,503,288 |
Volkswagen Financial Services Compañía Financiera S.A. |
|
4,215,709 |
|
4,199,737 |
PSA Finance Arg. Cía. Financiera S.A. |
|
2,513,466 |
|
2,528,040 |
BBVA Seguros Argentina S.A. |
|
1,505,445 |
|
1,457,321 |
Rombo Compañía Financiera S.A. |
|
1,039,298 |
|
905,942 |
Interbanking S.A. |
|
1,003,065 |
|
1,003,065 |
Play Digital S.A. (1) |
|
803,851 |
|
592,314 |
Openpay Argentina S.A. |
|
235,581 |
|
262,334 |
Consolidar A.F.J.P. S.A. (undergoing liquidation proceedings) |
|
4,860 |
|
16,869 |
|
|
|
|
|
TOTAL |
|
16,853,940 |
|
15,468,910 |
| (1) | In order to determine the value of this investment,
the accounting information of Play Digital S.A. as of December 31, 2022 has been used. In addition, the significant transactions made
or events occurred between January 1, 2023 and March 31, 2023 were considered. |
| 15. | Property and equipment |
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Real estate |
|
85,603,933 |
|
86,199,325 |
Furniture and facilities |
|
14,932,871 |
|
15,501,445 |
Right of use of leased real estate (Note 25) |
|
7,537,057 |
|
7,119,023 |
Construction in progress |
|
4,177,744 |
|
3,980,826 |
Machinery and equipment |
|
3,502,049 |
|
3,790,644 |
Vehicles |
|
270,296 |
|
295,291 |
|
|
|
|
|
TOTAL |
|
116,023,950 |
|
116,886,554 |
The breakdown of lease assets and liabilities as well
as interest and foreign exchange differences recognized in profit or loss are stated in Note 25 to these separate condensed interim financial
statements.
Based on the reports prepared by the independent appraiser
relied upon by the Bank to assess the impairment of its real estate, the carrying amount of the nine pieces of real estate exceeds their
recoverable value. Therefore, such amount should be written down to the recoverable value.
The impairment of assets recorded under the item “Property
and equipment” is reported below:
Account |
|
Impairment |
|
|
03.31.2023 |
|
12.31.2022 |
|
|
|
|
|
Real Estate - Lavallol |
|
(26,175) |
|
(26,175) |
Real Estate - Monte Grande |
|
(116,584) |
|
(116,584) |
Real Estate - Caleta Olivia, Santa Cruz |
|
(29,112) |
|
(29,112) |
Real Estate - Cerro Las Rosas |
|
(60,741) |
|
(60,741) |
Real Estate - Libertador |
|
(426,809) |
|
(426,809) |
Real Estate - Store 1 Puerto Madero |
|
(161,400) |
|
(161,400) |
Real Estate - Store 5 Puerto Madero |
|
(100,739) |
|
(100,739) |
Real Estate - Mar del Plata |
|
(11,817) |
|
(11,817) |
Real Estate - Bahía Blanca |
|
(12,708) |
|
(12,708) |
|
|
|
|
|
TOTAL |
|
(946,085) |
|
(946,085) |
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Licenses - Software |
|
11,558,835 |
|
11,626,010 |
|
|
|
|
|
TOTAL |
|
11,558,835 |
|
11,626,010 |
| 17. | Other non-financial assets |
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Investment properties |
|
23,922,079 |
|
24,026,937 |
Prepayments |
|
4,173,429 |
|
4,256,517 |
Tax advances |
|
3,397,818 |
|
3,066,961 |
Advances to suppliers of goods |
|
1,816,207 |
|
1,096,644 |
Advances to personnel |
|
1,167,886 |
|
1,943,921 |
Other miscellaneous assets |
|
317,002 |
|
317,002 |
Assets acquired as security for loans |
|
23,416 |
|
23,127 |
Other |
|
203,106 |
|
298,160 |
|
|
|
|
|
TOTAL |
|
35,020,943 |
|
35,029,269 |
Investment properties include pieces of real estate leased
to third parties. The average term of lease agreements is 6 years. Subsequent renewals are negotiated with the lessee. The Group has classified
these leases as operating leases, since these arrangements do not substantially transfer all risks and benefits inherent to the ownership
of the assets. The rental income is recognized under “Other operating income” on a straight-line basis during the term of
the lease.
| 18. | Non-current assets held for sale |
It includes pieces of real estate located in the Argentine
Republic, which the Bank’s Board of Directors agreed to sell in the short term.
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Property and equipment held for sale |
|
322,975 |
|
273,994 |
|
|
|
|
|
TOTAL |
|
322,975 |
|
273,994 |
Based on the reports prepared by the independent appraiser
relied upon by the Bank to assess the impairment of its real estate, the carrying amount of two pieces of real estate exceeds their recoverable
value. Therefore, such amount should be written down to the recoverable value.
The impairment of non-current assets held for sale is
reported below:
Account |
|
Impairment |
|
|
03.31.2023 |
|
12.31.2022 |
|
|
|
|
|
Real Estate held for sale - Fisherton |
|
(106,500) |
|
(106,500) |
Real Estate held for sale - Mendoza |
|
(482) |
|
(482) |
|
|
|
|
|
TOTAL |
|
(106,982) |
|
(106,982) |
The information on concentration of deposits is disclosed
in Exhibit H. Breakdown is as follows:
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Non-financial Government sector |
|
12,038,345 |
|
11,783,852 |
Financial Sector |
|
5,833,703 |
|
740,739 |
Non-financial Private Sector and Residents Abroad |
|
1,551,167,200 |
|
1,579,817,136 |
Savings accounts |
|
549,123,428 |
|
607,585,789 |
Time deposits |
|
526,088,731 |
|
497,471,151 |
Checking accounts |
|
321,937,868 |
|
308,565,379 |
Investment accounts |
|
141,953,998 |
|
153,315,882 |
Other |
|
12,063,175 |
|
12,878,935 |
|
|
|
|
|
TOTAL |
|
1,569,039,248 |
|
1,592,341,727 |
| 20. | Liabilities at fair value through profit or loss |
No transactions were accounted for in the period/year
ended March 31, 2023 and December 31, 2022.
| 21. | Other financial liabilities |
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Obligations from financing of purchases |
|
97,173,718 |
|
100,531,775 |
Collections and other transactions on behalf of third parties |
|
10,921,821 |
|
10,260,208 |
Liabilities for leases (Note 25) |
|
4,979,044 |
|
5,015,782 |
Payment orders pending credit |
|
4,801,915 |
|
7,946,037 |
Credit balance for spot sales pending settlement |
|
3,797,313 |
|
3,234,336 |
Funds collected under AFIP's instructions |
|
3,069,180 |
|
5,697,847 |
Receivables from spot purchases pending settlement |
|
2,299,672 |
|
4,751,124 |
Commissions accrued payable |
|
95,951 |
|
49,719 |
Other |
|
4,285,034 |
|
4,586,484 |
|
|
|
|
|
TOTAL |
|
131,423,648 |
|
142,073,312 |
| 22. | Financing received from the BCRA and other financial institutions |
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Local financial institutions |
|
852,265 |
|
2,909,339 |
Foreign financial institutions |
|
792,069 |
|
681,277 |
BCRA |
|
77,481 |
|
107,120 |
|
|
|
|
|
TOTAL |
|
1,721,815 |
|
3,697,736 |
| 23. | Corporate bonds issued |
No transactions were accounted for in the period/year
ended March 31, 2023 and December 31, 2022.
| 24. | Other non-financial liabilities |
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Miscellaneous creditors |
|
52,063,280 |
|
44,662,814 |
Advances collected |
|
23,361,042 |
|
23,897,467 |
Other collections and withholdings |
|
19,166,953 |
|
21,274,453 |
Short-term personnel benefits |
|
18,790,686 |
|
20,833,755 |
Cash dividends payable (1) |
|
14,834,791 |
|
18,058,732 |
Other taxes payable |
|
10,076,653 |
|
8,122,562 |
Social security payment orders pending settlement |
|
1,579,547 |
|
373,324 |
Long-term personnel benefits |
|
914,857 |
|
1,113,676 |
Termination benefits payable |
|
765,932 |
|
1,092,581 |
For contract liabilities |
|
464,338 |
|
547,364 |
Other |
|
82,140 |
|
186,669 |
|
|
|
|
|
TOTAL |
|
142,100,219 |
|
140,163,397 |
| (1) | See Note 43 to the consolidated financial statements. |
The Bank as lessee
Below is a detail of the amounts related to rights
of use of leased assets and lease liabilities in force as of March 31, 2023 and December 31, 2022:
Rights of use under leases
|
|
Initial |
|
|
|
|
|
Amortization |
Residual |
|
|
value as of |
|
|
|
|
|
Accumulated |
|
|
|
For the |
|
value as of |
Account |
|
01.01.23 |
|
Increases |
|
Decreases |
|
as of 01.01.23 |
|
Decreases |
|
Period (1) |
|
03.31.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased real property |
|
16,728,227 |
|
736,169 |
|
296,681 |
|
9,609,204 |
|
248,193 |
|
269,647 |
|
7,537,057 |
Lease liabilities
Future minimum payments for lease agreements are as follows:
|
In foreign currency |
|
In local currency |
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
|
|
|
Up to one year |
271,077 |
|
41,985 |
|
313,062 |
|
368,531 |
|
|
|
|
|
|
|
|
From 1 to 5 years |
3,331,491 |
|
321,567 |
|
3,653,058 |
|
3,842,760 |
|
|
|
|
|
|
|
|
More than 5 years |
1,003,600 |
|
9,324 |
|
1,012,924 |
|
804,491 |
|
|
|
|
|
|
|
|
|
|
|
|
|
4,979,044 |
|
5,015,782 |
Interest and exchange rate difference
recognized in profit or loss
|
|
|
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
|
|
|
Other operating expenses |
|
|
|
|
|
|
Interest on liabilities from leases (Note 38) |
|
|
|
(171,065) |
|
(216,981) |
|
|
|
|
|
|
|
|
Exchange rate difference |
|
|
|
|
|
|
|
Exchange rate difference for finance lease (loss) |
|
(3,816,643) |
|
(2,912,287) |
Share capital information is disclosed in Note 26 to
the consolidated condensed interim financial statements.
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Interest on government securities |
|
105,395,550 |
|
49,408,097 |
Interest on credit card loans |
|
26,263,762 |
|
16,474,043 |
Acquisition Value Unit (CER) clause adjustments |
|
21,968,186 |
|
13,456,520 |
Interest on instruments |
|
19,287,781 |
|
9,270,264 |
Premiums on reverse repurchase agreements |
|
17,521,855 |
|
15,138,123 |
Interest on overdrafts |
|
17,288,300 |
|
4,864,600 |
Interest on consumer loans |
|
12,125,801 |
|
8,987,542 |
Acquisition Value Unit (UVA) clause adjustments |
|
8,579,317 |
|
6,947,538 |
Interest on other loans |
|
7,935,470 |
|
6,883,999 |
Interest on loans to the financial sector |
|
2,078,087 |
|
2,272,043 |
Interest on pledge loans |
|
1,130,485 |
|
576,774 |
Interest on mortgage loans |
|
1,065,756 |
|
862,407 |
Interest on finance leases |
|
762,839 |
|
421,214 |
Interest on private securities |
|
219,810 |
|
194,418 |
Interest on loans for the prefinancing and financing of exports |
|
154,415 |
|
263,773 |
Other |
|
193,429 |
|
167,893 |
|
|
|
|
|
TOTAL |
|
241,970,843 |
|
136,189,248 |
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Time deposits |
|
96,625,358 |
|
44,210,449 |
Checking accounts deposits |
|
12,854,052 |
|
10,637,386 |
Acquisition Value Unit (UVA) clause adjustments |
|
4,783,553 |
|
3,457,228 |
Savings accounts deposits |
|
507,745 |
|
320,429 |
Other liabilities from financial transactions |
|
134,850 |
|
83,402 |
Interfinancial loans received |
|
130,408 |
|
141,381 |
Premiums on reverse repurchase transactions |
|
- |
|
3,148 |
Other |
|
816 |
|
494 |
|
|
|
|
|
TOTAL |
|
115,036,782 |
|
58,853,917 |
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Linked to liabilities |
|
9,014,223 |
|
10,887,551 |
From credit cards |
|
8,164,620 |
|
11,083,204 |
From foreign trade and foreign currency transactions |
|
1,009,992 |
|
1,047,506 |
From insurance |
|
968,203 |
|
1,144,465 |
Linked to securities |
|
383,923 |
|
269,530 |
Linked to loans |
|
345,002 |
|
286,761 |
From guarantees granted |
|
6,451 |
|
968 |
|
|
|
|
|
TOTAL |
|
19,892,414 |
|
24,719,985 |
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
For credit and debit cards |
|
7,986,180 |
|
10,226,214 |
For payment of salaries |
|
635,279 |
|
705,077 |
For new channels |
|
453,343 |
|
265,887 |
For data processing |
|
387,938 |
|
464,588 |
For foreign trade transactions |
|
324,395 |
|
232,228 |
For advertising campaigns |
|
44,791 |
|
72,196 |
For digital sales services |
|
1,639 |
|
10,558 |
Linked to transactions with securities |
|
5,353 |
|
4,866 |
Other commission expenses |
|
693,891 |
|
845,368 |
|
|
|
|
|
TOTAL |
|
10,532,809 |
|
12,826,982 |
| 31. | Net income from measurement of financial instruments at fair value through profit or loss |
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Income from government securities |
|
5,712,315 |
|
1,420,800 |
Income from foreign currency forward transactions |
|
629,028 |
|
1,325,057 |
Income from private securities |
|
69,969 |
|
(121,438) |
Income/(loss) from interest rate swaps |
|
21,897 |
|
(1,571) |
Income/(loss) from loans |
|
(3) |
|
- |
Income/(loss) from put options taken |
|
(26,983) |
|
- |
Income from corporate bonds |
|
- |
|
1,669 |
Income from sale or write-off of financial assets (1) |
|
- |
|
5,342,456 |
Other |
|
- |
|
(6,454) |
|
|
|
|
|
TOTAL |
|
6,406,223 |
|
7,960,519 |
| (1) | Corresponds to the sale of 49% of Prisma Medios de Pago S.A.’s capital stock. On March 18, 2022
the transfer of all the remaining shareholding of the Bank in such company was consummated. |
| 32. | Net income / (loss) from derecognition of assets carried at amortized cost and at fair value through
other comprehensive income |
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Income/(Loss) from sale of government securities |
|
38,326 |
|
(69,962) |
|
|
|
|
|
TOTAL |
|
38,326 |
|
(69,962) |
| 33. | Foreign exchange and gold gains/(losses) |
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Income from purchase-sale of foreign currency |
|
3,359,398 |
|
4,323,706 |
Conversion of foreign currency assets and liabilities into pesos |
|
(2,234,431) |
|
(819,892) |
|
|
|
|
|
TOTAL |
|
1,124,967 |
|
3,503,814 |
| 34. | Other operating income |
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Adjustments and interest on miscellaneous receivables |
|
2,062,154 |
|
1,556,774 |
Rental of safe deposit boxes |
|
683,776 |
|
1,052,730 |
Loans recovered |
|
645,885 |
|
805,541 |
Debit and credit card commissions |
|
476,395 |
|
520,876 |
Rent |
|
250,253 |
|
96,736 |
Fees expenses recovered |
|
219,131 |
|
275,891 |
Punitive interest |
|
208,768 |
|
107,352 |
Commission from syndicated transactions |
|
100,203 |
|
145,729 |
Allowances reversed |
|
2,984 |
|
33,074 |
Income from asset sale in equity instruments (1) |
- |
|
1,715,418 |
Other operating income |
|
668,081 |
|
583,035 |
|
|
|
|
|
TOTAL |
|
5,317,630 |
|
6,893,156 |
| (1) | Corresponds to the sale of 49% of Prisma Medios
de Pago S.A.’s capital stock. On March 18, 2022, the transfer of all the remaining shareholding of the Bank in such company was
consummated. |
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Salaries |
|
12,577,313 |
|
11,016,677 |
Other short-term personnel benefits |
|
4,561,707 |
|
3,093,717 |
Social security withholdings and collections |
|
3,685,914 |
|
3,190,597 |
Personnel compensation and bonuses |
|
475,248 |
|
578,202 |
Personnel services |
|
337,168 |
|
269,837 |
|
|
|
|
|
TOTAL |
|
21,637,350 |
|
18,149,030 |
| 36. | Administrative expenses |
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Taxes |
|
4,731,843 |
|
4,246,096 |
Rent |
|
3,492,762 |
|
3,183,430 |
IT |
|
2,728,324 |
|
715,190 |
Contracted administrative services |
|
2,572,802 |
|
1,347,190 |
Maintenance and repair costs |
|
2,107,504 |
|
1,979,962 |
Armored transportation services |
|
2,027,697 |
|
2,493,848 |
Advertising |
|
1,529,700 |
|
1,032,670 |
Electricity and communications |
|
809,900 |
|
800,754 |
Trade reports |
|
757,752 |
|
365,710 |
Documents distribution |
|
691,949 |
|
716,559 |
Other fees |
|
548,536 |
|
603,829 |
Security services |
|
548,323 |
|
573,660 |
Insurance |
|
188,521 |
|
218,687 |
Representation and travel expenses |
|
118,630 |
|
82,489 |
Fees to Bank Directors and Supervisory Committee |
|
19,391 |
|
21,302 |
Stationery and supplies |
|
24,191 |
|
52,866 |
Other administrative expenses |
|
718,184 |
|
701,424 |
|
|
|
|
|
TOTAL |
|
23,616,009 |
|
19,135,666 |
| 37. | Asset depreciation and impairment |
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Property and equipment |
|
2,137,095 |
|
2,385,533 |
Intangible assets |
|
317,185 |
|
143,902 |
Right of use of leased real estate |
|
269,647 |
|
752,935 |
Depreciation of other assets |
|
63,591 |
|
31,223 |
|
|
|
|
|
TOTAL |
|
2,787,518 |
|
3,313,593 |
| 38. | Other operating expenses |
|
|
03.31.23 |
|
03.31.22 |
|
|
|
|
|
Turnover tax |
|
14,740,917 |
|
10,272,958 |
Other allowances (Exhibit J) |
|
1,556,084 |
|
1,250,231 |
Initial recognition of loans |
|
996,961 |
|
1,014,763 |
Contribution to the Deposit Guarantee Fund |
|
583,366 |
|
644,077 |
Claims |
|
275,397 |
|
589,399 |
Interest on liabilities from leases (Note 25) |
|
171,065 |
|
216,981 |
Reorganization expenses (Exhibit J) |
|
- |
|
296,342 |
Other operating expenses |
|
963,253 |
|
868,144 |
|
|
|
|
|
TOTAL |
|
19,287,043 |
|
15,152,895 |
See Note 41 to the consolidated condensed interim financial statements.
| 40. | Restrictions to the distributions of earnings |
See Note 43 to the consolidated condensed interim financial
statements as regards restrictions to the distribution of earnings.
As of March 31, 2023 and December 31, 2022, the Bank
has the following restricted assets:
| a) | The Entity applied the following assets as
security for loans agreed under the Global Credit Program for micro, small and medium-sized enterprises granted by the Inter-American
Development Bank (IDB). |
|
03.31.23 |
12.31.22 |
|
|
|
Argentine Treasury Bonds adjusted by CER. Maturity 2024 |
50,206 |
50,288 |
|
|
|
Total |
50,206 |
50,288 |
| b) | Also, the Entity has accounts, deposits, repo
transactions and trusts applied as guarantee for activities related to credit card transactions, with automated clearing houses, forward
transactions, foreign currency futures, court proceedings and leases in the amount of 53,122,061 and 56,231,207 as of March 31, 2023 and
December 31, 2022, respectively (see Note 11 to these separate condensed interim financial statements). |
| 42. | Minimum cash and minimum capital requirements |
42.1 Minimum cash requirements
The BCRA establishes different prudential regulations
to be observed by financial institutions, mainly regarding solvency levels, liquidity and credit assistance levels.
Minimum cash regulations set forth an obligation
to keep liquid assets in relation to deposits and other obligations recorded for each period. The items included for the purpose of meeting
that requirement are detailed below:
Accounts |
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Balances at the BCRA |
|
|
|
|
|
|
|
|
|
BCRA - Current account not restricted |
|
243,187,913 |
|
196,355,179 |
BCRA - Special guarantee accounts - restricted (Note 11) |
|
19,209,787 |
|
16,879,821 |
B.C.R.A. – Special pension accounts – restricted |
|
1,289,943 |
|
- |
|
|
|
|
|
|
|
263,687,643 |
|
213,235,000 |
|
|
|
|
|
Argentine Treasury Bonds in pesos at 0.7% Badlar Private Rate. Maturity 11-23-2027 |
|
14,173,949 |
|
14,722,815 |
Treasury Bonds adjusted by 4.25% CER. Maturity 02-14-2025 |
|
11,759,908 |
|
- |
Argentine Treasury Bond in pesos. Maturity 05-23-2027 |
|
35,773,123 |
|
39,481,044 |
Other debt securities |
|
12,707,689 |
|
22,563,907 |
BCRA Liquidity Bills |
|
528,636,118 |
|
588,515,017 |
|
|
|
|
|
TOTAL |
|
866,738,430 |
|
878,517,783 |
42.2 Minimum cash requirements
The regulatory breakdown of minimum capital requirements is as follows
at the above-mentioned dates:
Minimum capital requirement |
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
Credit risk |
|
83,379,106 |
|
80,855,186 |
Operational risk |
|
33,177,383 |
|
32,918,775 |
Market risk |
|
1,429,467 |
|
1,328,965 |
|
|
|
|
|
Paid-in |
|
402,881,526 |
|
330,722,637 |
|
|
|
|
|
Surplus |
|
284,895,570 |
|
215,619,711 |
| 43. | Accounting principles – Explanation
added for translations into English |
These separate condensed interim financial statements
are presented in accordance with the financial reporting framework set forth by the BCRA, as mentioned in note 2. These accounting standards
may not conform to accounting principles generally accepted in other countries.
EXHIBIT
A |
|
|
|
|
|
|
|
|
|
|
BREAKDOWN
OF GOVERNMENT AND PRIVATE SECURITIES |
AS
OF MARCH 31, 2023 AND DECEMBER 31, 2022 |
(Amounts
stated in thousands of Argentine pesos in constant currency –Note 2.1.5. to the consolidated condensed interim financial statements) |
(Translation of Financial statements originally
issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
HOLDING |
|
POSITION |
|
|
Fair |
Fair |
Book |
Book |
|
Position
with |
|
|
Account |
Identification |
value |
level |
value |
value |
|
no
options |
Options |
Final
position |
|
|
|
value |
03.31.23 |
12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEBT
SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
Government
Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Argentine
Treasury Bond in pesos at 16%. Maturity 10-17-2023 |
5319 |
7,538,605 |
1 |
7,538,605 |
8,505,744 |
|
7,538,605 |
- |
7,538,605 |
Treasury
Bills adjusted by CER. Maturity 05-19-2023 |
9127 |
820,893 |
1 |
820,893 |
|
|
820,893 |
- |
820,893 |
Treasury
Bills at discount. Maturity 04-28-2023 ARS |
9142 |
7,147 |
1 |
7,147 |
|
|
7,147 |
- |
7,147 |
Treasury
Bills adjusted by CER. Maturity 02-17-2023 |
9111 |
- |
1 |
- |
483,617 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Subtotal
Government Securities - In pesos |
|
8,366,645 |
|
8,366,645 |
8,989,361 |
|
8,366,645 |
- |
8,366,645 |
|
|
|
|
|
|
|
|
|
|
Government
Securities - In foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Argentine
Treasury Bond in dual currency. Maturity 07-31-2023 |
9146 |
144,662 |
1 |
144,662 |
4,284,977 |
|
144,662 |
746 |
145,408 |
GD30
Bond Foreign Law USC Step Up. Maturity 07-09-2030 |
81086/94727 |
11,840 |
1 |
11,840 |
- |
|
11,840 |
- |
11,840 |
|
|
|
|
|
|
|
|
|
|
Subtotal
Government Securities - In foreign currency |
|
156,502 |
|
156,502 |
4,284,977 |
|
156,502 |
746 |
157,248 |
|
|
|
|
|
|
|
|
|
|
BCRA
Bills - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BCRA
Liquidity Bills in pesos. Maturity 04-05-2023 |
13962 |
19,793,524 |
2 |
19,793,524 |
- |
|
19,793,524 |
- |
19,793,524 |
BCRA
Liquidity Bills in pesos. Maturity 01-12-2023 |
13930 |
- |
2 |
- |
17,791,699 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Subtotal
BCRA Bills - In pesos |
|
19,793,524 |
|
19,793,524 |
17,791,699 |
|
19,793,524 |
- |
19,793,524 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS |
|
28,316,671 |
|
28,316,671 |
31,066,037 |
|
28,316,671 |
746 |
28,317,417 |
EXHIBIT
A |
(Continued) |
BREAKDOWN
OF GOVERNMENT AND PRIVATE SECURITIES |
AS
OF MARCH 31, 2023 AND DECEMBER 31, 2022 |
(Amounts
stated in thousands of Argentine pesos in constant currency –Note 2.1.5. to the consolidated condensed interim financial statements) |
(Translation of Financial statements originally
issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
HOLDING |
|
POSITION |
|
|
Value |
Fair |
Book |
Book |
|
Position
with |
|
|
Account |
Identification |
value |
level |
value |
value |
|
no
options |
Options |
Final
position |
|
|
|
value |
03.31.23 |
12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
DEBT SECURITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEASURED
AT FAIR VALUE THROUGH OCI |
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
Government
Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Argentine
Treasury Bonds adjusted by 1.55% CER in pesos. Maturity 07-26-2024 |
5405 |
30,151,788 |
2 |
30,151,788 |
31,208,182 |
|
30,151,788 |
- |
30,151,788 |
Treasury
Bonds adjusted by 1.50% CER. Maturity 03-25-2024 |
5493 |
29,437,650 |
2 |
29,437,650 |
30,259,231 |
|
29,437,650 |
- |
29,437,650 |
Treasury
Bonds in pesos adjusted by 4% CER. Maturity 10-14-2024 |
9179 |
16,129,941 |
2 |
16,129,941 |
- |
|
16,129,941 |
119,368 |
16,249,309 |
Treasury
Bonds in pesos adjusted by 3.75% CER. Maturity 04-14-2024 |
9178 |
12,707,689 |
2 |
12,707,689 |
- |
|
12,707,689 |
63,082 |
12,770,771 |
Treasury
Bonds in pesos adjusted by 1.45% CER. Maturity 08-13-2023 |
5497 |
11,847,912 |
2 |
11,847,912 |
25,313,599 |
|
11,847,912 |
- |
11,847,912 |
Treasury
Bonds in pesos adjusted by 4.25% CER. Maturity 02-14-2025 |
9180 |
11,759,908 |
2 |
11,759,908 |
- |
|
11,759,908 |
105,801 |
11,865,709 |
Boncer
Tx26 2%. Maturity 11-9-2026 |
5925 |
9,809,116 |
1 |
9,809,116 |
10,059,539 |
|
9,809,116 |
- |
9,809,116 |
Treasury
Bills adjusted by CER. Maturity 07-18-2023 |
9182 |
7,035,000 |
2 |
7,035,000 |
- |
|
7,035,000 |
- |
7,035,000 |
Treasury
Bills adjusted by CER. Maturity 06-16-2023 |
9152 |
1,753,917 |
1 |
1,753,917 |
5,923,915 |
|
1,753,917 |
18,354 |
1,772,271 |
Treasury
Bills adjusted by CER. Maturity 05-19-2023 |
9127 |
888,183 |
1 |
888,183 |
16,085,124 |
|
888,183 |
3,099 |
891,282 |
Treasury
Bonds in pesos adjusted by 1.40% CER. Maturity 03-25-2023 |
5492/81012 |
- |
1 |
- |
10,627,461 |
|
- |
- |
- |
Treasury
Bills at discount ARS. Maturity 05-31-2023 |
9171 |
- |
2 |
- |
1,779,444 |
|
- |
- |
- |
Treasury
Bills at discount ARS. Maturity 03-31-2023 |
9164 |
- |
2 |
- |
11,052,209 |
|
- |
- |
- |
Treasury
Bills at discount ARS. Maturity 04-28-2023 |
9142 |
- |
2 |
- |
9,732,254 |
|
- |
- |
- |
Treasury
Bills adjusted by CER. Maturity 04-21-2023 |
9118 |
- |
1 |
- |
811,321 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Subtotal
Government Securities - In pesos |
|
131,521,104 |
|
131,521,104 |
152,852,279 |
|
131,521,104 |
309,704 |
131,830,808 |
|
|
|
|
|
|
|
|
|
|
Government
Securities - In foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollar-linked
Argentine Treasury Bonds. Maturity 04-28-2023 |
5928 |
313,404 |
1 |
313,404 |
326,486 |
|
313,404 |
- |
313,404 |
|
|
|
|
|
|
|
|
|
|
Subtotal
Government Securities - In foreign currency |
|
313,404 |
|
313,404 |
326,486 |
|
313,404 |
- |
313,404 |
|
|
|
|
|
|
|
|
|
|
BCRA
Bills - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BCRA
Liquidity Bills in pesos. Maturity 04-04-2023 |
13961 |
79,362,960 |
2 |
79,362,960 |
- |
|
79,362,960 |
- |
79,362,960 |
BCRA
Liquidity Bills in pesos. Maturity 04-18-2023 |
13969 |
67,433,100 |
2 |
67,433,100 |
- |
|
67,433,100 |
- |
67,433,100 |
BCRA
Liquidity Bills in pesos. Maturity 04-27-2023 |
13972 |
66,185,203 |
2 |
66,185,203 |
- |
|
66,185,203 |
- |
66,185,203 |
BCRA
Liquidity Bills in pesos. Maturity 04-20-2023 |
13970 |
62,357,100 |
2 |
62,357,100 |
- |
|
62,357,100 |
- |
62,357,100 |
BCRA
Liquidity Bills in pesos. Maturity 04-05-2023 |
13962 |
59,380,571 |
2 |
59,380,571 |
- |
|
59,380,571 |
- |
59,380,571 |
BCRA
Liquidity Bills in pesos. Maturity 04-11-2023 |
13963 |
58,695,780 |
2 |
58,695,780 |
- |
|
58,695,780 |
- |
58,695,780 |
BCRA
Liquidity Bills in pesos. Maturity 04-13-2023 |
13968 |
58,461,720 |
2 |
58,461,720 |
- |
|
58,461,720 |
- |
58,461,720 |
BCRA
Liquidity Bills in pesos. Maturity 04-25-2023 |
13971 |
56,966,160 |
2 |
56,966,160 |
- |
|
56,966,160 |
- |
56,966,160 |
BCRA
Liquidity Bills in pesos. Maturity 01-26-2023 |
13934 |
- |
2 |
- |
201,844,601 |
|
- |
- |
- |
BCRA
Liquidity Bills in pesos. Maturity 01-03-2023 |
13927 |
- |
2 |
- |
72,458,060 |
|
- |
- |
- |
BCRA
Liquidity Bills in pesos. Maturity 01-05-2023 |
13928 |
- |
2 |
- |
72,169,043 |
|
- |
- |
- |
BCRA
Liquidity Bills in pesos. Maturity 01-10-2023 |
13929 |
- |
2 |
- |
59,543,120 |
|
- |
- |
- |
BCRA
Liquidity Bills in pesos. Maturity 01-17-2023 |
13931 |
- |
2 |
- |
58,716,175 |
|
- |
- |
- |
BCRA
Liquidity Bills in pesos. Maturity 01-12-2023 |
13930 |
- |
2 |
- |
53,375,097 |
|
- |
- |
- |
BCRA
Liquidity Bills in pesos. Maturity 01-19-2023 |
13932 |
- |
2 |
- |
52,617,222 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Subtotal
BCRA Bills - In pesos |
|
508,842,594 |
|
508,842,594 |
570,723,318 |
|
508,842,594 |
- |
508,842,594 |
|
|
|
|
|
|
|
|
|
|
BCRA
Bills - In foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local
BCRA Bills in USD. Maturity 10-03-2023 |
11815 |
626,965 |
2 |
626,965 |
646,867 |
|
626,965 |
- |
626,965 |
Local
BCRA Bills in USD. Maturity 10-04-2023 |
11816 |
626,965 |
2 |
626,965 |
646,867 |
|
626,965 |
- |
626,965 |
Local
BCRA Bills in USD. Maturity 09-29-2023 |
11808 |
585,167 |
2 |
585,167 |
646,867 |
|
585,167 |
- |
585,167 |
Local
BCRA Bills in USD. Maturity 10-05-2023 |
11817 |
417,977 |
2 |
417,977 |
431,246 |
|
417,977 |
- |
417,977 |
Local
BCRA Bills in USD. Maturity 09-23-2023 |
11804 |
208,988 |
2 |
208,988 |
215,622 |
|
208,988 |
- |
208,988 |
|
|
|
|
|
|
|
|
|
|
Subtotal
BCRA Bills - In foreign currency |
|
2,466,062 |
|
2,466,062 |
2,587,469 |
|
2,466,062 |
- |
2,466,062 |
|
|
|
|
|
|
|
|
|
|
Private
Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
Bond Arcor Class 17 adjusted by UVA. Maturity 10-20-2025 |
55692 |
755,527 |
3 |
755,527 |
750,372 |
|
755,527 |
- |
755,527 |
Corporate
Bond Petroquímica Com. Rivadavia S.A. in Pesos at Floating Rate. Maturity 08-15-2024 |
56855 |
434,400 |
3 |
434,400 |
- |
|
434,400 |
- |
434,400 |
Corporate
Bond New San S.A. in Pesos Private BADLAR + 440 bps. Maturity 02-14-2024 |
56847 |
216,100 |
3 |
216,100 |
- |
|
216,100 |
- |
216,100 |
Corporate
Bond Bco. de Serv. Financieros Series 22 in Pesos at Floating rate. Maturity 03-03-2024 |
56886 |
212,429 |
3 |
212,429 |
- |
|
212,429 |
- |
212,429 |
Corporate
Bond Refi Pampa Class 2 adjusted by UVA. Maturity 05-06-2025 |
56123 |
41,946 |
3 |
41,946 |
41,252 |
|
41,946 |
- |
41,946 |
|
|
|
|
|
|
|
|
|
|
Subtotal
Private Securities - In Pesos |
|
1,660,402 |
|
1,660,402 |
791,624 |
|
1,660,402 |
- |
1,660,402 |
|
|
|
|
|
|
|
|
|
|
Private
Securities - In foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Bond Vista Energy Clase 13 U$S Maturity.
8-08-2024 |
56207 |
1,440,190 |
2 |
1,440,190 |
1,647,176 |
|
1,440,190 |
- |
1,440,190 |
Corporate Bond Vista Energy Clase 15 U$S Maturity.
01-21-2025 |
56637 |
908,377 |
2 |
908,377 |
1,077,173 |
|
908,377 |
- |
908,377 |
Corporate Bond Luz De Tres Picos 4 U$S Maturity
09-29-2026 |
56467 |
487,284 |
2 |
487,284 |
676,886 |
|
487,284 |
- |
487,284 |
Corporate Bond in foreign currency Pcr Class H |
55849 |
196,772 |
2 |
196,772 |
230,566 |
|
196,772 |
- |
196,772 |
Corporate Bond Molinos Agro SA U$S Link Maturity
05-18-2023 |
55364 |
103,848 |
2 |
103,848 |
108,589 |
|
103,848 |
- |
103,848 |
|
|
|
|
|
|
|
|
|
|
Subtotal
Private Securities - In foreign currency |
|
3,136,471 |
|
3,136,471 |
3,740,390 |
|
3,136,471 |
- |
3,136,471 |
|
|
|
|
|
|
|
|
|
|
TOTAL
DEBT SECURITIES AT FAIR VALUE THROUGH OCI |
|
647,940,037 |
|
647,940,037 |
731,021,566 |
|
647,940,037 |
309,704 |
648,249,741 |
EXHIBIT
A |
(Continued) |
BREAKDOWN
OF GOVERNMENT AND PRIVATE SECURITIES |
AS
OF MARCH 31, 2023 AND DECEMBER 31, 2022 |
(Amounts
stated in thousands of Argentine pesos in constant currency –Note 2.1.5. to the consolidated condensed interim financial statements) |
(Translation of Financial statements originally
issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
HOLDING |
|
POSITION |
|
|
Value |
Fair |
Book |
Book |
|
Position
with |
|
|
Account |
Identification |
value |
level |
value |
value |
|
no
options |
Options |
Final
position |
|
|
|
value |
03.31.23 |
12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
DEBT SECURITIES (Continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEASURED
AT AMORTIZED COST |
|
|
|
|
|
|
|
|
|
Government
Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Argentine
Treasury Bond in pesos. Maturity 05-23-2027 |
9132 |
35,773,123 |
2 |
35,773,123 |
39,481,044 |
|
35,773,123 |
- |
35,773,123 |
Argentine Treasuty Bonds in pesos at 0.7% Badlar Private Rate.
Maturity 11-23-2027 |
9166 |
14,173,949 |
2 |
14,173,949 |
14,722,815 |
|
14,173,949 |
- |
14,173,949 |
|
|
|
|
|
|
|
|
|
|
Subtotal
Government Securities - In pesos |
|
49,947,072 |
|
49,947,072 |
54,203,859 |
|
49,947,072 |
- |
49,947,072 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
DEBT SECURITIES AT AMORTIZED COST |
|
49,947,072 |
|
49,947,072 |
54,203,859 |
|
49,947,072 |
- |
49,947,072 |
|
|
|
|
|
|
|
|
|
|
TOTAL
OTHER DEBT SECURITIES |
|
697,887,109 |
|
697,887,109 |
785,225,425 |
|
697,887,109 |
309,704 |
698,196,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
INSTRUMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEASURED
AT FAIR VALUE THROUGH PROFIT OR LOSS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
Private
Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BYMA
- Bolsas y Mercados Argentina Share |
|
767,673 |
1 |
767,673 |
680,922 |
|
767,673 |
- |
767,673 |
Banco
de Valores de Bs. As. Share |
|
370,589 |
1 |
370,589 |
387,740 |
|
370,589 |
- |
370,589 |
|
|
|
|
|
|
|
|
|
|
Subtotal
Private Securities - In Pesos |
|
1,138,262 |
|
1,138,262 |
1,068,662 |
|
1,138,262 |
- |
1,138,262 |
|
|
|
|
|
|
|
|
|
|
TOTAL
EQUITY INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS |
|
1,138,262 |
|
1,138,262 |
1,068,662 |
|
1,138,262 |
- |
1,138,262 |
|
|
|
|
|
|
|
|
|
|
MEASURED
AT FAIR VALUE THROUGH OCI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
Private
Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
217 |
2 |
217 |
264 |
|
217 |
- |
217 |
|
|
|
|
|
|
|
|
|
|
Subtotal
Private Securities - In Pesos |
|
217 |
|
217 |
264 |
|
217 |
- |
217 |
|
|
|
|
|
|
|
|
|
|
Foreign: |
|
|
|
|
|
|
|
|
|
Private
Securities - In foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
76,075 |
2 |
76,075 |
73,345 |
|
76,075 |
- |
76,075 |
|
|
|
|
|
|
|
|
|
|
Subtotal
Private Securities - In foreign currency |
|
76,075 |
|
76,075 |
73,345 |
|
76,075 |
- |
76,075 |
|
|
|
|
|
|
|
|
|
|
TOTAL
EQUITY INSTRUMENTS AT FAIR VALUE THROUGH OCI |
|
76,292 |
|
76,292 |
73,609 |
|
76,292 |
- |
76,292 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
EQUITY INSTRUMENTS |
|
1,214,554 |
|
1,214,554 |
1,142,271 |
|
1,214,554 |
- |
1,214,554 |
|
|
|
|
|
EXHIBIT B |
|
|
|
|
|
|
|
|
|
|
|
|
CLASSIFICATION OF LOANS AND OTHER FINANCING ACCORDING TO FINANCIAL PERFORMANCE |
AND GUARANTEES RECEIVED |
AS OF MARCH 31, 2023 AND DECEMBER 31, 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5. to the consolidated condensed interim financial statements) |
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
Account |
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
|
COMMERCIAL PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
Normal performance |
|
327,211,544 |
|
299,413,614 |
|
Preferred collaterals and counter-guarantees "A" |
|
1,237,903 |
|
2,203,251 |
|
Preferred collaterals and counter-guarantees "B" |
|
2,025,101 |
|
2,519,459 |
|
No preferred guarantees or counter guarantees |
|
323,948,540 |
|
294,690,904 |
|
|
|
|
|
|
With special follow-up |
|
874,895 |
|
934,713 |
|
|
|
|
|
|
Under negotiation or refinancing agreements |
|
874,895 |
|
934,713 |
|
Preferred collaterals and counter-guarantees "B" |
|
152,395 |
|
157,233 |
|
No preferred guarantees or counter guarantees |
|
722,500 |
|
777,480 |
|
|
|
|
|
|
Troubled |
|
1,169,369 |
|
1,339,010 |
|
No preferred guarantees or counter guarantees |
|
1,169,369 |
|
1,339,010 |
|
|
|
|
|
|
With high risk of insolvency |
|
168,039 |
|
173,355 |
|
No preferred guarantees or counter guarantees |
|
168,039 |
|
173,355 |
|
|
|
|
|
|
Uncollectible |
|
28,292 |
|
33,295 |
|
No preferred guarantees or counter guarantees |
|
28,292 |
|
33,295 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
329,452,139 |
|
301,893,987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT B |
|
|
|
|
|
(Continued) |
|
|
|
|
|
|
CLASSIFICATION OF LOANS AND OTHER FINANCING ACCORDING TO FINANCIAL PERFORMANCE |
AND GUARANTEES RECEIVED |
AS OF MARCH 31, 2023 AND DECEMBER 31, 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5. to the consolidated condensed interim financial statements) |
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
Account |
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
|
CONSUMER AND HOUSING PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
Normal performance |
|
538,899,125 |
|
564,379,433 |
|
Preferred collaterals and counter-guarantees "A" |
|
521,516 |
|
201,585 |
|
Preferred collaterals and counter-guarantees "B" |
|
51,202,558 |
|
46,955,330 |
|
No preferred guarantees or counter guarantees |
|
487,175,051 |
|
517,222,518 |
|
|
|
|
|
|
Low risk |
|
8,143,573 |
|
6,876,463 |
|
Preferred collaterals and counter-guarantees "B" |
|
507,413 |
|
450,257 |
|
No preferred guarantees or counter guarantees |
|
7,636,160 |
|
6,426,206 |
|
|
|
|
|
|
Low risk - with special follow-up |
|
262,995 |
|
225,693 |
|
No preferred guarantees or counter guarantees |
|
262,995 |
|
225,693 |
|
|
|
|
|
|
Medium risk |
|
6,151,179 |
|
4,722,179 |
|
Preferred collaterals and counter-guarantees "A" |
|
77 |
|
62 |
|
Preferred collaterals and counter-guarantees "B" |
|
197,895 |
|
101,989 |
|
No preferred guarantees or counter guarantees |
|
5,953,207 |
|
4,620,128 |
|
|
|
|
|
|
High risk |
|
3,773,391 |
|
3,308,292 |
|
Preferred collaterals and counter-guarantees "B" |
|
147,528 |
|
168,843 |
|
No preferred guarantees or counter guarantees |
|
3,625,863 |
|
3,139,449 |
|
|
|
|
|
|
Uncollectible |
|
529,025 |
|
472,181 |
|
Preferred collaterals and counter-guarantees "A" |
|
4,302 |
|
5,237 |
|
Preferred collaterals and counter-guarantees "B" |
|
119,220 |
|
86,130 |
|
No preferred guarantees or counter guarantees |
|
405,503 |
|
380,814 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
557,759,288 |
|
579,984,241 |
|
|
|
|
|
|
|
|
|
|
|
|
GRAND TOTAL |
|
887,211,427 |
|
881,878,228 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT C |
|
|
|
|
|
|
|
|
|
|
CONCENTRATION OF LOANS AND OTHER FINANCING |
AS OF MARCH 31, 2023 AND DECEMBER 31, 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5. to the consolidated condensed interim financial statements) |
|
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
% over |
|
|
|
% over |
|
Number of customers |
|
Book |
|
total |
|
Book |
|
total |
|
|
|
balance |
|
portfolio |
|
balance |
|
portfolio |
|
|
|
|
|
|
|
|
|
|
|
10 largest customers |
|
93,567,489 |
|
10.55% |
|
74,449,914 |
|
8.44% |
|
50 following largest customers |
|
119,164,776 |
|
13.43% |
|
105,789,448 |
|
12.00% |
|
100 following largest customers |
|
60,754,553 |
|
6.85% |
|
58,919,987 |
|
6.68% |
|
All other customers |
|
613,724,609 |
|
69.17% |
|
642,718,879 |
|
72.88% |
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
887,211,427 |
|
100.00% |
|
881,878,228 |
|
100.00% |
|
|
|
|
|
|
|
|
|
EXHIBIT D |
BREAKDOWN BY TERM OF LOANS AND OTHER FINANCING |
AS OF MARCH 31, 2023 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5. to the consolidated condensed interim financial statements) (1) |
|
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Terms remaining to maturity |
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio |
1 |
3 |
6 |
12 |
24 |
more than |
|
|
ACCOUNT |
due |
month |
months |
months |
months |
months |
24 |
TOTAL |
|
|
|
|
|
|
|
|
months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-financial Government sector |
- |
2,874 |
- |
- |
- |
- |
- |
2,874 |
|
Financial Sector |
- |
10,634,399 |
2,059,073 |
762,325 |
2,646,819 |
6,816,622 |
1,711,603 |
24,630,841 |
|
Non-financial private sector and |
|
|
|
|
|
|
|
|
|
residents abroad |
9,865,140 |
416,368,890 |
108,738,982 |
89,158,858 |
108,495,610 |
87,551,862 |
159,970,966 |
980,150,308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
9,865,140 |
427,006,163 |
110,798,055 |
89,921,183 |
111,142,429 |
94,368,484 |
161,682,569 |
1,004,784,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) These balances are total contractual flows and, therefore, include principal, accrued and to be accrued interest and charges. |
BREAKDOWN BY TERM OF LOANS AND OTHER FINANCING |
AS OF DECEMBER 31, 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5. to the consolidated condensed interim financial statements) (1) |
|
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Terms remaining to maturity |
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio |
1 |
3 |
6 |
12 |
24 |
more than |
|
|
ACCOUNT |
due |
month |
months |
months |
months |
months |
24 |
TOTAL |
|
|
|
|
|
|
|
|
months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-financial Government sector |
- |
1,703 |
- |
- |
- |
- |
- |
1,703 |
|
B.C.R.A. |
- |
10,997 |
- |
- |
- |
- |
- |
10,997 |
|
Financial Sector |
- |
8,573,485 |
6,257,840 |
2,972,519 |
2,233,029 |
7,581,942 |
2,206,914 |
29,825,729 |
|
Non-financial private sector and |
|
|
|
|
|
|
|
|
|
residents abroad |
7,991,105 |
439,875,173 |
113,561,707 |
94,827,652 |
81,042,319 |
82,142,814 |
162,398,002 |
981,838,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,991,105 |
448,461,358 |
119,819,547 |
97,800,171 |
83,275,348 |
89,724,756 |
164,604,916 |
1,011,677,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) These balances are total contractual flows and, therefore, include principal, accrued and to be accrued interest and charges. |
|
|
|
|
|
|
|
EXHIBIT H |
|
|
|
|
|
|
|
|
|
|
DEPOSITS CONCENTRATION |
AS OF MARCH 31, 2023 AND DECEMBER 31, 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5. to the consolidated condensed interim financial statements) |
|
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
03.31.23 |
|
12.31.22 |
|
|
|
|
|
% over |
|
|
% over |
|
Number of customers |
|
Book |
total |
|
Book |
total |
|
|
|
|
balance |
portfolio |
|
balance |
portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10 largest customers |
|
184,970,072 |
11.79% |
|
149,857,321 |
9.41% |
|
|
|
|
|
|
|
|
|
|
|
50 following largest customers |
|
186,438,250 |
11.88% |
|
178,806,163 |
11.23% |
|
|
|
|
|
|
|
|
|
|
|
100 following largest customers |
|
70,147,266 |
4.47% |
|
66,210,196 |
4.16% |
|
|
|
|
|
|
|
|
|
|
|
All other customers |
|
1,127,483,660 |
71.86% |
|
1,197,468,047 |
75.20% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
1,569,039,248 |
100.00% |
|
1,592,341,727 |
100.00% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT I |
BREAKDOWN OF FINANCIAL LIABILITIES BY REMAINING TERMS |
AS OF MARCH 31, 2023 |
|
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5. to the consolidated condensed interim financial statements) (1) |
|
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Terms remaining to maturity |
|
|
|
|
|
|
|
|
|
|
|
1 |
3 |
6 |
12 |
24 |
more than |
|
|
ACCOUNTS |
month |
months |
months |
months |
months |
24 months |
TOTAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
1,097,895,780 |
412,771,534 |
129,334,815 |
1,733,123 |
122,438 |
- |
1,641,857,690 |
|
Non-financial Government sector |
12,127,411 |
63,772 |
- |
- |
- |
- |
12,191,183 |
|
Financial Sector |
5,833,703 |
- |
- |
- |
- |
- |
5,833,703 |
|
Non-financial Private Sector and Residents Abroad |
1,079,934,666 |
412,707,762 |
129,334,815 |
1,733,123 |
122,438 |
- |
1,623,832,804 |
|
Derivative instruments |
520,841 |
- |
- |
- |
- |
- |
520,841 |
|
Other financial liabilities |
131,537,395 |
259,687 |
330,680 |
616,961 |
1,058,086 |
5,054,245 |
138,857,054 |
|
Financing received from the BCRA and other financial institutions |
1,107,947 |
260,056 |
361,503 |
- |
- |
- |
1,729,506 |
|
|
|
|
|
|
|
|
|
|
TOTAL |
1,231,061,963 |
413,291,277 |
130,026,998 |
2,350,084 |
1,180,524 |
5,054,245 |
1,782,965,091 |
|
|
|
|
|
|
|
|
|
|
(1) These balances are total contractual flows and, therefore, include principal, accrued and to be accrued interest and charges. |
BREAKDOWN OF FINANCIAL LIABILITIES BY REMAINING TERMS |
|
AS OF DECEMBER 31, 2022 |
|
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5. to the consolidated condensed interim financial statements) (1) |
|
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Terms remaining to maturity |
|
|
|
|
|
|
|
|
|
|
|
1 |
3 |
6 |
12 |
24 |
more than |
|
|
ACCOUNTS |
month |
months |
months |
months |
months |
24 months |
TOTAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
1,371,704,975 |
125,597,871 |
126,081,581 |
1,566,708 |
94,553 |
- |
1,625,045,688 |
|
Non-financial Government sector |
11,688,884 |
164,310 |
- |
- |
- |
- |
11,853,194 |
|
Financial Sector |
740,739 |
- |
- |
- |
- |
- |
740,739 |
|
Non-financial Private Sector and Residents Abroad |
1,359,275,352 |
125,433,561 |
126,081,581 |
1,566,708 |
94,553 |
- |
1,612,451,755 |
|
Derivative instruments |
407,000 |
- |
- |
- |
- |
- |
407,000 |
|
Other financial liabilities |
142,274,702 |
340,433 |
452,845 |
722,613 |
1,270,261 |
5,927,590 |
150,988,444 |
|
Financing received from the BCRA and other financial institutions |
3,132,866 |
298,321 |
267,338 |
- |
- |
- |
3,698,525 |
|
|
|
|
|
|
|
|
|
|
TOTAL |
1,517,519,543 |
126,236,625 |
126,801,764 |
2,289,321 |
1,364,814 |
5,927,590 |
1,780,139,657 |
|
|
|
|
|
|
|
|
|
|
(1) These balances are total contractual flows and, therefore, include principal, accrued and to be accrued interest and charges. |
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT J |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISIONS |
AS OF MARCH 31, 2023 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5. to the consolidated condensed interim financial statements) |
|
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decreases |
|
|
|
|
|
Accounts |
|
Balance at the beginning of the fiscal year |
|
Increases |
|
Reversals |
|
Uses |
|
Monetary gain (loss) generated by provisions |
|
Balances as of 03.31.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCLUDED IN LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Provisions for contingent commitments |
|
3,279,709 |
|
596,899 |
(1)(3) |
- |
|
- |
|
(605,942) |
|
3,270,666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- For administrative, disciplinary and criminal penalties |
|
6,087 |
|
- |
|
- |
|
- |
|
(1,087) |
|
5,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Provisions for termination plans |
|
552,685 |
|
- |
|
- |
|
- |
|
(98,668) |
|
454,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Other |
|
6,539,816 |
|
959,687 |
(2) |
2,984 |
|
206,724 |
|
(1,231,306) |
|
6,058,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL PROVISIONS |
|
10,378,297 |
|
1,556,586 |
|
2,984 |
|
206,724 |
|
(1,937,003) |
|
9,788,172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Set up in compliance with the provisions of Comunication "A" 2950 and supplementary regulations of the BCRA. |
(2) |
Set up to cover for potential contingencies not considered in other accounts (civil, commercial, labor and other lawsuits), and as required by Memorandum 6/2017 issued by the BCRA. |
(3) |
It includes an increase of 502 for exchange differences in foreign currency for contingent commitments. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISIONS |
AS OF DECEMBER 31, 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5. to the consolidated condensed interim financial statements) |
|
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decreases |
|
Monetary gain (loss) generated by provisions |
|
|
|
Accounts |
|
Balance at the beginning of the fiscal year |
|
Increases |
|
Reversals |
|
Uses |
|
|
Balances as of 12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCLUDED IN LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Provisions for contingent commitments |
|
2,024,234 |
|
2,489,198 |
(1)(4) |
- |
|
- |
|
(1,233,723) |
|
3,279,709 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- For administrative, disciplinary and criminal penalties |
|
11,857 |
|
- |
|
- |
|
- |
|
(5,770) |
|
6,087 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Provisiones por reorganización |
|
3,185,631 |
|
2,889,575 |
(3) |
277,371 |
|
4,507,970 |
|
(1,289,865) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Provisions for termination plans |
|
624,150 |
|
272,976 |
|
- |
|
- |
|
(344,441) |
|
552,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Other |
|
7,256,287 |
|
4,555,736 |
(2) |
- |
|
1,022,372 |
|
(4,249,835) |
|
6,539,816 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL PROVISIONS |
|
13,102,159 |
|
10,207,485 |
|
277,371 |
|
5,530,342 |
|
(7,123,634) |
|
10,378,297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Set up in compliance with the provisions of Comunication "A" 2950 and supplementary regulations of the BCRA. |
(2) |
Set up to cover for potential contingencies not considered in other accounts (civil, commercial, labor and other lawsuits), and as required by Memorandum 6/2017 issued by the BCRA. |
(3) |
See Note 23 to the Consolidated Financial Statements |
(4) |
It includes an increase of 3,243 for exchange differences in foreign currency for contingent commitments. |
EXHIBIT L |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCES IN FOREIGN CURRENCY |
AS OF MARCH 31, 2023 AND DECEMBER 31, 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5. to the consolidated condensed interim financial statements) |
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCOUNTS |
|
TOTAL |
AS OF 03.31.23 (per currency) |
|
TOTAL |
|
|
|
AS OF |
|
|
|
|
|
AS OF |
ASSETS |
|
|
03.31.23 |
Dollar |
Euro |
Real |
Other |
|
12.31.22 |
|
|
|
|
|
|
|
|
|
|
Cash and deposits in banks |
|
|
300,801,397 |
291,919,553 |
8,500,857 |
23,226 |
357,761 |
|
302,398,984 |
Debt securities at fair value through profit or loss |
|
|
156,502 |
156,502 |
- |
- |
- |
|
4,284,977 |
Other financial assets |
|
|
9,778,638 |
9,772,818 |
5,820 |
- |
- |
|
10,287,658 |
Loans and other financing |
|
|
42,323,568 |
42,076,428 |
246,953 |
- |
187 |
|
46,908,026 |
Non-financial Government sector |
|
|
331 |
331 |
- |
- |
- |
|
57 |
Other financial institutions |
|
|
1,293 |
1,293 |
- |
- |
- |
|
792 |
Non-financial Private Sector and Residents Abroad |
|
|
42,321,944 |
42,074,804 |
246,953 |
- |
187 |
|
46,907,177 |
Other debt securities |
|
|
5,915,937 |
5,915,937 |
- |
- |
- |
|
6,654,345 |
Financial assets pledged as collateral |
|
|
5,119,209 |
5,119,209 |
- |
- |
- |
|
13,112,107 |
Investments in equity instruments |
|
|
76,075 |
76,075 |
- |
- |
- |
|
73,345 |
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
|
364,171,326 |
355,036,522 |
8,753,630 |
23,226 |
357,948 |
|
383,719,442 |
|
|
|
TOTAL |
AS OF 03.31.23 (per currency) |
|
TOTAL |
|
|
|
AS OF |
|
|
|
|
|
AS OF |
LIABILITIES |
|
|
03.31.23 |
Dollar |
Euro |
Real |
Other |
|
12.31.22 |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
333,997,825 |
328,423,297 |
5,574,528 |
- |
- |
|
348,258,769 |
Non-financial Government sector |
|
|
7,862,651 |
7,833,253 |
29,398 |
- |
- |
|
7,826,721 |
Financial Sector |
|
|
121,578 |
119,822 |
1,756 |
- |
- |
|
104,982 |
Non-financial Private Sector and Residents Abroad |
|
|
326,013,596 |
320,470,222 |
5,543,374 |
- |
- |
|
340,327,066 |
Other financial liabilities |
|
|
24,271,395 |
23,298,257 |
950,527 |
- |
22,611 |
|
26,654,806 |
Financing received from the BCRA and other financial institutions |
1,343,680 |
1,150,609 |
193,071 |
- |
- |
|
1,350,898 |
Other non-financial liabilities |
|
|
15,827,370 |
7,911,372 |
7,915,998 |
- |
- |
|
13,713,795 |
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
|
375,440,270 |
360,783,535 |
14,634,124 |
- |
22,611 |
|
389,978,268 |
|
EXHIBIT O |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DERIVATIVES |
AS OF MARCH 31, 2023 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5. to the consolidated condensed interim financial statements) |
|
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Type of Contract |
|
Purpose of the Transactions |
|
Underlying Assets |
|
Type of Settlement |
|
Scope of Negotiation or Counterparty |
|
Weighted Average Term Originally Agreed |
|
Residual Weighted Average Term |
|
Weighted Average Term of Differences Settlement |
|
Amount |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SWAPS |
|
Financial transactions own account |
|
Other |
|
Upon maturity of differences |
|
OTC - Residents in the country - Financial Sector |
|
12 |
|
5 |
|
34 |
|
1,500,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REPO TRANSACTIONS |
|
Financial transactions own account |
|
Other |
|
Upon maturity of differences |
|
OTC - Residents in the country - Financial Sector |
|
1 |
|
1 |
|
3 |
|
158,872,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FUTURES |
|
Financial transactions own account |
|
Foreign currency |
|
Daily differences |
|
ROFEX |
|
2 |
|
1 |
|
1 |
|
245,205,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FUTURES |
|
Financial transactions own account |
|
Foreign currency |
|
Upon maturity of differences |
|
OTC - Residents in the country - Non-financial Sector |
|
2 |
|
1 |
|
55 |
|
132,850,824 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPTIONS |
|
Financial transactions own account |
|
Other |
|
Upon maturity of differences |
|
OTC - Residents abroad |
|
9 |
|
2 |
|
263 |
|
48,141,260 |
DERIVATIVES |
AS OF DECEMBER 31, 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5. to the consolidated condensed interim financial statements) |
|
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Type of Contract |
|
Purpose of the Transactions |
|
Underlying Assets |
|
Type of Settlement |
|
Scope of Negotiation or Counterparty |
|
Weighted Average Term Originally Agreed |
|
Residual Weighted Average Term |
|
Weighted Average Term of Differences Settlement |
|
Amount |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SWAPS |
|
Financial transactions own account |
|
Other |
|
Upon maturity of differences |
|
OTC - Residents in the country - Financial Sector |
|
12 |
|
8 |
|
31 |
|
1,825,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REPO TRANSACTIONS |
|
Financial transactions own account |
|
Other |
|
Upon maturity of differences |
|
OTC - Residents in the country - Financial Sector |
|
1 |
|
1 |
|
3 |
|
71,326,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FUTURES |
|
Financial transactions own account |
|
Foreign currency |
|
Daily differences |
|
ROFEX |
|
3 |
|
2 |
|
1 |
|
387,034,606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FUTURES |
|
Financial transactions own account |
|
Foreign currency |
|
Upon maturity of differences |
|
OTC - Residents abroad |
|
2 |
|
1 |
|
57 |
|
2,352,932 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FUTURES |
|
Financial transactions own account |
|
Foreign currency |
|
Upon maturity of differences |
|
OTC - Residents in the country - Non-financial Sector |
|
2 |
|
1 |
|
67 |
|
183,289,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPTIONS |
|
Financial transactions own account |
|
Other |
|
Upon maturity of differences |
|
OTC - Residents abroad |
|
9 |
|
5 |
|
263 |
|
5,763,029 |
|
|
|
|
|
|
|
|
EXHIBIT R |
|
ADJUSTMENT TO IMPAIRMENT LOSS - ALLOWANCES FOR LOAN LOSSES |
AS OF MARCH 31, 2023 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5. to the consolidated condensed interim financial statements) |
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
ECL of remaining life of the financial asset |
|
|
|
Accounts |
|
Balance |
ECL for the |
|
|
Monetary |
|
Balance |
|
|
as of 12.31.22 |
following |
FI with significant |
FI with credit |
gain (loss) |
|
as of 03.31.23 |
|
|
|
12 months |
increase of |
impairment |
generated by |
|
|
|
|
|
|
credit risk |
|
allowances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial assets |
|
506,986 |
16,827 |
- |
21,209 |
(93,133) |
|
451,889 |
|
|
|
|
|
|
|
|
|
Loans and other financing |
|
25,450,364 |
943,796 |
1,927,859 |
3,491,284 |
(4,729,922) |
|
27,083,381 |
Other financial institutions |
|
1,096,741 |
15,223 |
26,890 |
(821) |
(136,674) |
|
1,001,359 |
Non-financial Private Sector and Residents Abroad |
24,353,623 |
928,573 |
1,900,969 |
3,492,105 |
(4,593,248) |
|
26,082,022 |
Overdrafts |
|
1,269,008 |
290,318 |
99,812 |
(71,667) |
(238,622) |
|
1,348,849 |
Instruments |
|
928,950 |
165,441 |
78,310 |
16,600 |
(169,872) |
|
1,019,429 |
Mortgage loans |
|
2,087,857 |
(3,230) |
158,820 |
372,516 |
(411,050) |
|
2,204,913 |
Pledge loans |
|
180,780 |
27,053 |
3,648 |
(2,745) |
(32,342) |
|
176,394 |
Consumer loans |
|
4,989,784 |
184,346 |
167,906 |
1,242,889 |
(1,001,837) |
|
5,583,088 |
Credit Cards |
|
12,289,767 |
443,973 |
1,369,505 |
1,589,467 |
(2,327,915) |
|
13,364,797 |
Finance leases |
|
231,812 |
11,435 |
9,284 |
40,836 |
(43,374) |
|
249,993 |
Other |
|
2,375,665 |
(190,763) |
13,684 |
304,209 |
(368,236) |
|
2,134,559 |
|
|
|
|
|
|
|
|
|
Other debt securities |
|
39,060 |
13,688 |
- |
- |
(7,802) |
|
44,946 |
|
|
|
|
|
|
|
|
|
Contingent commitments |
|
3,279,709 |
514,697 |
59,576 |
22,626 |
(605,942) |
|
3,270,666 |
|
|
|
|
|
|
|
|
|
TOTAL ALLOWANCES |
|
29,276,119 |
1,489,008 |
1,987,435 |
3,535,119 |
(5,436,799) |
|
30,850,882 |
ADJUSTMENT TO IMPAIRMENT LOSS - ALLOWANCES FOR LOAN LOSSES |
AS OF DECEMBER 31, 2022 |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5. to the consolidated condensed interim financial statements) |
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
ECL of remaining life of the financial asset |
|
|
|
Accounts |
|
Balance |
ECL for the |
|
|
Monetary |
|
Balance |
|
|
as of 12.31.21 |
following |
FI with significant |
FI with credit |
gain (loss) |
|
as of 12.31.22 |
|
|
|
12 months |
increase of |
impairment |
generated by |
|
|
|
|
|
|
credit risk |
|
allowances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial assets |
|
612,219 |
152,227 |
- |
118,290 |
(375,750) |
|
506,986 |
|
|
|
|
|
|
|
|
|
Loans and other financing |
|
31,900,245 |
4,512,782 |
3,563,911 |
1,183,958 |
(15,710,532) |
|
25,450,364 |
Other financial institutions |
|
781,077 |
689,275 |
223,378 |
(3,275) |
(593,714) |
|
1,096,741 |
Non-financial Private Sector and Residents Abroad |
31,119,168 |
3,823,507 |
3,340,533 |
1,187,233 |
(15,116,818) |
|
24,353,623 |
Overdrafts |
|
762,859 |
636,236 |
254,725 |
404,491 |
(789,303) |
|
1,269,008 |
Instruments |
|
1,425,104 |
226,145 |
(25,492) |
(19,531) |
(677,276) |
|
928,950 |
Mortgage loans |
|
1,743,187 |
79,221 |
320,628 |
1,032,520 |
(1,087,699) |
|
2,087,857 |
Pledge loans |
|
234,900 |
53,858 |
735 |
27,028 |
(135,741) |
|
180,780 |
Consumer loans |
|
6,088,908 |
457,804 |
(20,743) |
1,648,745 |
(3,184,930) |
|
4,989,784 |
Credit Cards |
|
11,534,687 |
1,627,835 |
3,600,916 |
1,859,841 |
(6,333,512) |
|
12,289,767 |
Finance leases |
|
222,822 |
40,383 |
10,030 |
76,445 |
(117,868) |
|
231,812 |
Other |
|
9,106,701 |
702,025 |
(800,266) |
(3,842,306) |
(2,790,489) |
|
2,375,665 |
|
|
|
|
|
|
|
|
|
Other debt securities |
|
35,829 |
28,085 |
- |
- |
(24,854) |
|
39,060 |
|
|
|
|
|
|
|
|
|
Contingent commitments |
|
2,024,234 |
1,671,607 |
776,749 |
40,841 |
(1,233,722) |
|
3,279,709 |
|
|
|
|
|
|
|
|
|
TOTAL ALLOWANCES |
|
34,572,527 |
6,364,701 |
4,340,660 |
1,343,089 |
(17,344,858) |
|
29,276,119 |
REPORTING SUMMARY FOR
THE PERIOD ENDED MARCH 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated condensed interim financial statements)
Translation of Financial statements originally
issued in Spanish - See Note 53 to the consolidated financial statements
These consolidated condensed interim financial statements
of the Bank were prepared in accordance with the financial reporting framework set forth by the BCRA. (Communication “A” 6114
of the BCRA, as supplemented). Except for the exceptions established by the BCRA, which are explained in the following paragraph, such
framework is based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB)
and adopted by the Argentine Federation of Professionals Councils in Economic Sciences (FACPCE, for its acronym in Spanish). The abovementioned
international standards include the IFRS, the International Accounting Standards (IAS) and the interpretations developed by the IFRS Interpretations
Committee (IFRIC) or former IFRIC (SIC).
Out of the exceptions set forth by the BCRA to the application
of current IFRS, the following affect the preparation of these consolidated condensed interim financial statements:
| a) | Within the framework of the convergence process
to IFRS established by Communication “A” 6114, as amended and supplemented, the BCRA provided that for fiscal years starting
on or after January 1, 2020, financial institutions defined as “Group A” according to BCRA regulations, as such is the case
of the Entity, are required to start to apply paragraph 5.5 “Impairment” of IFRS 9 “Financial Instruments” (paragraphs
B5.5.1 through B5.5.55) except for exposures to the public sector, considering the exclusion set forth by Communication “A”
6847. |
Had the abovementioned paragraph 5.5. “Impairment”
been applied in full, according to a global estimate made by the Entity, as of March 31, 2023 and December 31, 2022, its shareholders’
equity would have been reduced by 4,865,604 and 5,456,725, respectively.
| b) | In March 2022, the transfer of the equity instruments corresponding to the remaining interest in Prisma
Medios de Pago S.A. was made, which instruments were measured at fair value as set forth in Memorandum dated April 29, 2019 and March
22, 2021 received by the BCRA, and the income (loss) from their sale was recorded in the quarter ended March 31, 2022. Had the IFRS been
applied in order to determine the fair value above mentioned, the income (loss) for the three-month period ended March 31, 2022 would
have changed. However, this situation does not generate differences as regards the shareholders’ equity value as of December 31,
2022. |
Information not covered by the Auditors
Report on the review of the consolidated condensed interim financial statements.
REPORTING SUMMARY FOR
THE PERIOD ENDED MARCH 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated condensed interim financial statements)
Translation of Financial statements originally
issued in Spanish - See Note 53 to the consolidated financial statements
Except for what was mentioned in the previous paragraphs,
the accounting policies applied by the Entity comply with the IFRS that have been currently approved and are applicable in the preparation
of these consolidated condensed interim financial statements in accordance with the IFRS as adopted by the BCRA as per Communication “A”
7411. In general, the BCRA does not allow the early application of any IFRS, unless otherwise specified.
These financial statements have been approved by the Board
of Directors of Banco BBVA Argentina S.A. on May 23, 2023.
Furthermore, the BCRA, through Communications “A”
6323 and 6324, set forth guidelines for the preparation and presentation of the financial statements of financial institutions for fiscal
years beginning on or after January 1, 2018, including the additional reporting requirements as well as the information to be submitted
as Exhibits.
As a consequence of the application of those standards,
the Bank prepares its financial statements according to the new financial reporting framework set forth by the BCRA as of March 31, 2023
and December 31, 2022.
Banco BBVA Argentina S.A. (NYSE;
MAE; BYMA: BBAR; Latibex: XBBAR) is a subsidiary of the BBVA Group—its majority shareholder since 1996. In Argentina, it has been
one of the major financial institutions since 1886. BBVA Argentina offers retail and corporate banking services to a broad customer base,
including individuals, small-to-medium sized companies, and large corporations. As of March 31, 2023, the Entity's total assets,
liabilities and shareholders' equity amounted to 2,359,830,386; 1,900,056,628; and 459,773,758; respectively.
The Entity offers its products and services through a
wide multi-channel distribution network with presence in all the provinces in Argentina and the City of Buenos Aires, with more than 3.7
million active customers as of March 31, 2023. That network includes 243 branches providing services to the retail segment and also to
small and medium sized-enterprises and organizations.
Information not covered by the Auditors
Report on the review of the consolidated condensed interim financial statements.
REPORTING SUMMARY FOR
THE PERIOD ENDED MARCH 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated condensed interim financial statements)
Translation of Financial statements originally
issued in Spanish - See Note 53 to the consolidated financial statements
Corporate Banking is divided by industry sector: Consumers,
Heavy Industries and Energy, providing customized services for large companies. To supplement the distribution network, the Entity has
896 ATMs, 856 self-service terminals, 15 in-company banks, two points of Customer service booths. Moreover, it has a telephone banking
service, a modern, safe and functional Internet banking platform and a mobile banking app. As regards payroll, Banco BBVA Argentina SA.
has 5,957 employees, including 94 employees of BBVA Asset Management Argentina S.A.U., PSA Finance Argentina Compañía Financiera
S.A. and Volkswagen Financial Services Compañía Financiera S.A. (active employees at the end of the month, including structural,
temporary and expatriate employees).
The loans portfolio net of allowance for loan losses totaled
$ 853,867,027 as of March 31, 2023, reflecting a 2.99% increase as compared to the previous year.
As it relates to consumer loans, including
pledge loans, credit cards, mortgage loans and consumer loans, the latter jointly with credit cards decreased the least, by 0.28% in the
case of consumer loans and 5.10% in credit cards, compared with March 31, 2022.
Banco BBVA Argentina S.A.'s consolidated
market share in private-sector financing was 9.33% at period-end, based on the BCRA's daily information (principal balance as of the last
day of each consolidated quarter).
In terms of portfolio quality, the Entity
has managed to maintain very good ratios. The non performing ratio (Financings non performing/total financing) was 1.31%, with a coverage
level (total allowances/non performing) of 220.30% as of March 31, 2023.
The exposure for securities as of March
31, 2023 totaled $ 867,647,582, including repos.
In terms of liabilities, customers’
resources totaled $ 1,571,863,042, with a 3.50% decrease over the last twelve months.
Information not covered by the Auditors Report on the
review of the consolidated condensed interim financial statements.
REPORTING SUMMARY FOR
THE PERIOD ENDED MARCH 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated condensed interim financial statements)
Translation of Financial statements originally
issued in Spanish - See Note 53 to the consolidated financial statements
Banco BBVA Argentina S.A.'s consolidated market share
in private deposits was 6.83% at period-end, based on the BCRA's daily information (principal balance as of the last day of each quarter).
Breakdown of changes in the main
income/loss items
Banco BBVA Argentina S.A. recorded an accumulated profit
of 15,019,321 as of March 31, 2023, representing a return on average shareholders' equity of 13.66%, a return on average assets of 2.57%,
and a return on average liabilities of 0.78%.
Accumulated net interest income totaled
131,189,349, up by 63.69% compared to March 2022. Such increase was driven by increased income from government securities and interest
on overdraft facilities, offset by an increase in interest on term deposits.
Accumulated net commission income totaled
11,326,740 accounting decreasing by 16.43% as compared to March 2022. This decrease was due to a decrease in credit card commissions and
higher commission expenses.
Accumulated administrative expenses and personnel benefits
totaled 46,032,213, up by 21.28% vis-a-vis March 2022. This increase was due to higher remuneration expenses and hired administrative
services.
Information not covered by the Auditors Report on the
review of the consolidated condensed interim financial statements.
REPORTING SUMMARY FOR
THE PERIOD ENDED MARCH 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated condensed interim financial statements)
Translation of Financial statements originally
issued in Spanish - See Note 53 to the consolidated financial statements
Outlook
Despite the less favorable global context and the local
environment signed by the difficulty of correcting current macroeconomic distortions and meeting the objectives established in the arrangements
reached in March last year with the International Monetary Fund, the economic activity has shown certain dynamism in 2022. GDP grew 5.2%
in 2022 and would drop 2.5% in 2023 according to BBVA Research’s estimates. Expected GDP contraction in 2023 is supported by the
global slowdown, high inflation (94.8% in December 2022, and foreseeably higher in 2023), financial volatility, the limited margin to
adopt new stimulus measures and the uncertainty as regards the evolution of the economic policy in a presidential election year.
The banking system is influenced by the high inflation
scenario. At the end of March 2023 both private credit and private deposits, grew 78% and 108%, respectively, comparative with March 2022
(source: BCRA siscen reporting regime as of March 31, 2023. Capital balances as of the last day of each period, in nominal terms). Meanwhile,
the total NPL ratio decreased to 3.2%, compared to 3.9% as of March 2022 (source: Banking Report, BCRA, latest available data February
2023).
BBVA Argentina continues to actively monitor its businesses,
financial position, and results of operations, and believes it is competitively positioned to face the challenges posed by the prevailing
context. The Bank’s funding costs are low due to an adequate deposit mix, a strong capital and liquidity position, and an optimal
portfolio quality vis-a-vis the financial system.
Corporate responsibility is embedded in the Bank’s
business model, driving financial inclusion and education, and supporting scientific research and culture. BBVA Argentina operates with
uttermost integrity, long-term vision and best practices, and has a presence among the main sustainability indexes through BBVA Group.
The Bank's digital transformation is now an inherent
part of the way the institution does business. Our service offering has evolved in such a way that at the end of March 2023, the penetration
of our digital customers reached 62%, remaining stable vis-a-vis the end of the previous year, while that of our mobile customers reached
56%, up from 54% a year ago. Our customers’ response has been satisfactory, and we are convinced that we are on the right track
to maintain and enhance our competitive position in the financial system. In the quarter, the acquisition of new digital customers over
traditional ones was 72%.
The Bank’s goal for 2023 will be to maintain
its current strength built all over the years, within the framework of a decisive year for Argentina.
Information not covered by the Auditors Report on the review of
the consolidated condensed interim financial statements.
REPORTING SUMMARY FOR
THE PERIOD ENDED MARCH 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated condensed interim financial statements)
Translation of Financial statements originally
issued in Spanish - See Note 53 to the consolidated financial statements
CONSOLIDATED BALANCE SHEET STRUCTURE |
COMPARATIVE WITH THE SAME PERIODS OF PREVIOUS FISCAL YEARS |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
03.31.23 |
|
03.31.22 |
|
03.31.21 |
|
03.31.20 |
|
03.31.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
2,359,830,386 |
|
2,388,392,315 |
|
2,351,067,901 |
|
2,317,308,794 |
|
2,678,575,472 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
1,900,056,628 |
|
1,991,750,188 |
|
1,971,112,565 |
|
1,916,026,430 |
|
2,319,703,672 |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
453,205,747 |
|
389,304,375 |
|
372,433,592 |
|
393,479,024 |
|
358,646,737 |
|
|
|
|
|
|
|
|
|
|
|
|
Minority interest |
|
|
6,568,011 |
|
7,337,752 |
|
7,521,744 |
|
7,803,340 |
|
225,063 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities + Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
+ Minority interest |
|
|
2,359,830,386 |
|
2,388,392,315 |
|
2,351,067,901 |
|
2,317,308,794 |
|
2,678,575,472 |
REPORTING SUMMARY FOR
THE PERIOD ENDED MARCH 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated condensed interim financial statements)
Translation of Financial statements originally
issued in Spanish - See Note 53 to the consolidated financial statements
CONSOLIDATED
STATEMENT OF INCOME STRUCTURE |
|
|
COMPARATIVE
WITH THE SAME PERIODS OF PREVIOUS FISCAL YEARS |
|
|
(Amounts
stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
03.31.23 |
|
03.31.22 |
|
03.31.21 |
|
03.31.20 |
|
03.31.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
131,189,349 |
|
80,142,999 |
|
68,280,620 |
|
74,317,867 |
|
68,002,466 |
|
|
|
|
|
|
|
|
|
|
Net commission income |
11,326,740 |
|
13,553,624 |
|
10,631,710 |
|
8,479,257 |
|
10,406,702 |
|
|
|
|
|
|
|
|
|
|
Net
income from measurement of financial instruments at fair value through profit or loss |
6,977,892 |
|
8,346,762 |
|
5,071,464 |
|
4,472,265 |
|
16,962,518 |
Net
income (loss) from write-down of assets at amortized cost and at fair value through OCI |
38,326 |
|
(69,962) |
|
(104,573) |
|
(3,312,864) |
|
(28,315) |
Foreing
exchange and gold gains/(losses) |
1,054,747 |
|
3,496,551 |
|
2,837,934 |
|
5,592,723 |
|
8,930,887 |
Other
operating income |
5,492,036 |
|
6,894,482 |
|
4,901,149 |
|
4,696,350 |
|
23,812,553 |
Loan
loss allowance |
(8,177,833) |
|
(4,635,996) |
|
(6,064,366) |
|
(7,337,954) |
|
(7,311,970) |
|
|
|
|
|
|
|
|
|
|
Net operating income |
147,901,257 |
|
107,728,460 |
|
85,553,938 |
|
86,907,644 |
|
120,774,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel
benefits |
(22,052,654) |
|
(18,518,539) |
|
(18,506,433) |
|
(20,066,486) |
|
(18,995,973) |
Administrative
expenses |
(23,979,559) |
|
(19,438,240) |
|
(16,894,634) |
|
(16,227,312) |
|
(14,285,782) |
Asset
depreciation and impairment |
(2,820,321) |
|
(3,339,332) |
|
(3,387,508) |
|
(3,719,206) |
|
(5,557,604) |
Other
operating expenses |
(20,291,557) |
|
(15,841,787) |
|
(14,727,124) |
|
(14,064,995) |
|
(20,382,484) |
|
|
|
|
|
|
|
|
|
|
Operating
income |
78,757,166 |
|
50,590,562 |
|
32,038,239 |
|
32,829,645 |
|
61,552,998 |
|
|
|
|
|
|
|
|
|
|
Loss
from associates and joint ventures |
(60,163) |
|
(545,783) |
|
(92,914) |
|
124,631 |
|
(344,934) |
|
|
|
|
|
|
|
|
|
|
Loss
on net monetary position |
(56,795,954) |
|
(38,263,020) |
|
(23,926,154) |
|
(16,936,936) |
|
(22,700,228) |
|
|
|
|
|
|
|
|
|
|
Income
before income tax from continuing activities |
21,901,049 |
|
11,781,759 |
|
8,019,171 |
|
16,017,340 |
|
38,507,836 |
|
|
|
|
|
|
|
|
|
|
Income
tax from continuing activities |
(6,881,728) |
|
(3,539,972) |
|
1,383,590 |
|
(9,783,829) |
|
(16,494,977) |
|
|
|
|
|
|
|
|
|
|
Net
income from continuing activities |
15,019,321 |
|
8,241,787 |
|
9,402,761 |
|
6,233,511 |
|
22,012,859 |
|
|
|
|
|
|
|
|
|
|
Net
income for the year |
15,019,321 |
|
8,241,787 |
|
9,402,761 |
|
6,233,511 |
|
22,012,859 |
REPORTING SUMMARY FOR
THE PERIOD ENDED MARCH 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated condensed interim financial statements)
Translation of Financial statements originally
issued in Spanish - See Note 53 to the consolidated financial statements
CONSOLIDATED
CASH FLOW STRUCTURE |
COMPARATIVE
WITH THE SAME PERIODS OF PREVIOUS FISCAL YEARS |
(Amounts
stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
03.31.23 |
|
03.31.22 |
|
03.31.21 |
|
03.31.20 |
|
03.31.19 |
|
|
|
|
|
|
|
|
|
|
|
Net cash generated
by / (used in) operating activities |
|
85,887,635 |
|
(31,188,125) |
|
146,016,417 |
|
(63,778,399) |
|
(8,013,704) |
|
|
|
|
|
|
|
|
|
|
|
Total cash flows (used in) /
generated by investing activities |
|
(2,286,210) |
|
(2,622,559) |
|
(1,363,140) |
|
(843,379) |
|
6,647,326 |
|
|
|
|
|
|
|
|
|
|
|
Total cash flows (used in) /
generated by financing activities |
|
(5,977,185) |
|
(3,835,511) |
|
(4,991,703) |
|
(5,879,792) |
|
9,068,237 |
|
|
|
|
|
|
|
|
|
|
|
Effect
of exchange rate changes |
|
9,211,763 |
|
853,812 |
|
2,449,184 |
|
20,296,369 |
|
20,427,648 |
|
|
|
|
|
|
|
|
|
|
|
Effect
of net monetary income/(loss) of cash and cash equivalents |
|
(73,399,323) |
|
(74,474,971) |
|
(66,301,424) |
|
(48,919,175) |
|
(73,648,888) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
cash generated / (used) during the period |
|
13,436,680 |
|
(111,267,354) |
|
75,809,334 |
|
(99,124,376) |
|
(45,519,381) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REPORTING SUMMARY FOR
THE PERIOD ENDED MARCH 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated condensed interim financial statements)
Translation of Financial statements originally
issued in Spanish - See Note 53 to the consolidated financial statements
COMPARATIVE STATISTICAL DATA |
COMPARATIVE WITH PREVIOUS FISCAL YEARS |
COMPARATIVE WITH THE SAME PERIODS OF PREVIOUS FISCAL YEARS |
(variation of balances over the previous fiscal year) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
03.31.23 /
03.31.22 |
|
03.31.22 /
03.31.21 |
|
03.31.21 /
03.31.20 |
|
03.31.20 /
03.31.19 |
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
2.99% |
|
-8.08% |
|
-8.66% |
|
-20.55% |
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
|
-3.50% |
|
1.23% |
|
8.55% |
|
-20.68% |
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) |
|
82.23% |
|
-12.35% |
|
50.84% |
|
-71.68% |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
15.92% |
|
4.39% |
|
-5.31% |
|
11.82% |
|
COMPARATIVE STATISTICAL DATA |
COMPARATIVE WITH THE SAME PERIODS OF PREVIOUS FISCAL YEARS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
03.31.23 |
|
03.31.22 |
|
03.31.21 |
|
03.31.20 |
|
03.31.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Solvency (a) |
|
24.20% |
|
19.91% |
|
19.28% |
|
20.94% |
|
15.47% |
|
|
|
|
|
|
|
|
|
|
|
Liquidity (b) |
|
78.69% |
|
79.64% |
|
72.04% |
|
68.11% |
|
60.93% |
|
|
|
|
|
|
|
|
|
|
|
Tied-up capital (c) |
|
33.23% |
|
36.22% |
|
35.29% |
|
34.11% |
|
42.93% |
|
|
|
|
|
|
|
|
|
|
|
Indebtedness (d) |
|
4.13 |
|
5.02 |
|
5.19 |
|
4.77 |
|
6.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Shareholders’ Equity/Liabilities. |
(b) Sum of cash and deposits in banks, debt securities at fair value through profit or loss (excluding private securities), |
net repo transactions and other debt securities/deposits. |
(c) Sum of property and equipment, miscellaneous assets and intangible assets/Shareholders’ Equity. |
(d) Total liabilities/Shareholders' Equity. |
Information not covered by the Auditors Report on the review of
the consolidated condensed interim financial statements.
| Pistrelli, Henry Martin y Asociados S.R.L. 25 de mayo 487 - C1002ABI Buenos Aires, Argentina | Tel: (54-11) 4318-1600/4311-6644 Fax: (54-11) 4318-1777/4510-2220 ey.com |
| | |
REPORT ON THE REVIEW OF INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
To the Directors of
BANCO BBVA ARGENTINA S.A.
CUIT (Argentine taxpayer identification number): 30-50000319-3
Registered office: Av. Córdoba 111
City of Buenos Aires, Argentina
| I. | Report on the financial statements
|
Introduction
| 1. | We have reviewed the accompanying
interim condensed consolidated financial statements of BANCO BBVA ARGENTINA S.A. (the “Bank”) and its subsidiaries, which
comprise: (a) the condensed consolidated statement of financial position as of March 31, 2023, (b) the condensed consolidated statements
of income and other comprehensive income, the changes in shareholders’ equity and cash flows for the three-month period then ended,
and (c) a summary of significant accounting policies and other explanatory information included in the notes and exhibits that supplement
them. |
Responsibility of the Bank’s
Management and Board of Directors in connection with the financial statements
| 2. | The Bank’s Management and
Board of Directors are responsible for the preparation and presentation of the financial statements mentioned in paragraph 1, in conformity
with the financial reporting framework set forth by the Central Bank of Argentina (BCRA) which, as indicated in note 2 to the financial
statements mentioned in paragraph 1, is based on IFRS (International Financial Reporting Standards), and in particular for the condensed
interim financial statements on the International Accounting Standard (“IAS”) 34 "Interim Financial Reporting",
as issued by the IASB (International Accounting Standards Board) and adopted by the FACPCE (Argentine Federation of Professional Councils
in Economic Sciences), including the exceptions established by the BCRA explained in the such note. The Bank’s Board and Management
are also responsible for the internal control they may deem necessary for the interim financial statements to be prepared free of material
misstatements, whether due to errors or irregularities. |
Auditors’ responsibility
| 3. | Our responsibility is to conclude
on the financial statements mentioned in paragraph 1 based on our review, which was performed in accordance with the provisions of FACPCE
Technical Resolution No. 37 and with BCRA minimum external auditing standards applicable to the review of interim financial statements
and in compliance with the ethical requirements relevant to the audit of the Bank’s annual financial statements. A review of interim
financial statements consists of making inquiries, mainly from the persons in charge of accounting and financial issues, as well as applying
analytical procedures and other review procedures. The scope of a review is considerably narrower than that of a financial statements
audit, therefore, we cannot obtain reasonable assurance that we
will become aware of all the material issues that may arise in an audit. Therefore, we do not express an audit opinion. |
A member firm of Ernst & Young Global Limited |
| Pistrelli, Henry Martin y Asociados S.R.L. 25 de mayo 487 - C1002ABI Buenos Aires, Argentina | Tel: (54-11) 4318-1600/4311-6644 Fax: (54-11) 4318-1777/4510-2220 ey.com |
| | |
| 4. | Based on our review, nothing
came to our attention making us believe that the financial statements mentioned in paragraph 1 are not prepared, in all material respects,
in accordance with the financial reporting framework set forth by the BCRA and referred to in paragraph 2. |
Emphasis on certain aspects
disclosed in the financial statements
| 5. | We would like to draw attention
to the information contained in the following notes to the financial statements mentioned in paragraph 1: |
| a) | Note 2. “Basis for the
preparation of these financial statements and applicable accounting standards – Applicable Accounting Standards” where the
Bank quantifies the effects of the application of section 5.5 “Impairment in value” of IFRS 9 “Financial instruments”
to financial assets that comprise exposures to the public sector, which were temporarily excluded from such application through BCRA Communiqué
“A” 6847, which are explained in the note. |
| b) | Note 2. “Basis for the
preparation of these financial statements and applicable accounting standards - Applicable Accounting Standards” related to the
measurement of the remaining investment in Prisma Medios de Pago S.A., in which the Bank exposes that (i) in March 2022, the transfer
of the equity instruments measured at fair value was determined as set forth in Memorandum dated April 29, 2019 and March 22, 2021 received
by the BCRA, and (ii) had the IFRS been applied to determine the fair value referred to above, income (loss) for the three-month period
ended March 31, 2022 would have changed. |
These issues do not change the conclusion
stated in paragraph 4, but they should be taken into account by the users of IFRS for interpreting the accompanying financial statements
mentioned in paragraph 1.
| 6. | As further explained in Note
53. to the interim condensed consolidated interim financial statements mentioned in paragraph 1., certain accounting practices used by
the Bank to prepare the accompanying financial statements conform with the financial reporting framework set forth by the BCRA but may
not conform with the accounting principles generally accepted in other countries. |
Other matters
| 7. | We also issued a separate report
on the interim condensed separate financial statements of BANCO BBVA ARGENTINA S.A. as of the same date and for the same period indicated
in paragraph 1. |
A member firm of Ernst & Young Global Limited |
| Pistrelli, Henry Martin y Asociados S.R.L. 25 de mayo 487 - C1002ABI Buenos Aires, Argentina | Tel: (54-11) 4318-1600/4311-6644 Fax: (54-11) 4318-1777/4510-2220 ey.com |
| | |
Report on other legal and regulatory requirements
In compliance with current regulations,
we further report that:
| a) | The condensed
consolidated financial statements mentioned in paragraph 1 are being transcribed to the Book of Balance Sheets for Publication and result
from books kept, in their formal respects, in conformity with current regulations considering what is mentioned in note 2.7. |
| b) | As of
March 31, 2023, liabilities accrued in employee and employer contributions to the Integrated Pension Fund System, as recorded in the Bank’s
accounting books, amounted to ARS 713,769,007, none of which was due and payable as of that date. |
| c) | The information
included in the “Consolidated Balance Sheet Structure”, the “Consolidated Statement of Income Structure” and the
“Consolidated Cash Flows Structure” of the Reporting Summary for the period ended March 31, 2023, filed by the Bank jointly
with the financial statements to comply with CNV (Argentine Securities Commission) regulations, arises from the Bank’s accompanying
interim condensed consolidated financial statements as of March 31, 2023 and as of March 31, 2022, 2021, 2020 and 2019, which are not
included as exhibits. In addition, we report that the interim condensed consolidated financial statements as of March 31, 2021, 2020 and
2019, to which we refer, which should be read jointly with this report, were reviewed by other auditors who issued their review reports
on May 26, 2021, June 8, 2020 and May 8, 2019, respectively. |
The figures of the comparative
information have been restated to consider the changes in the currency general purchasing power and are thus stated in the constant currency
as of the end of the reporting period.
d)
As stated in note 47 to the accompanying condensed consolidated
financial statements, the Bank carries shareholders’ equity and a contra account to eligible assets that exceed the minimum amounts
required by relevant CNV regulations for these items as of March 31, 2023.
City of Buenos Aires
May 23, 2023
PISTRELLI, HENRY MARTIN Y ASOCIADOS S.R.L. |
|
|
|
JAVIER J. HUICI |
Partner |
Certified Public Accountant (U.B.A.) |
A member firm of Ernst & Young Global Limited |
| Pistrelli, Henry Martin y Asociados S.R.L. 25 de mayo 487 - C1002ABI Buenos Aires, Argentina | Tel: (54-11) 4318-1600/4311-6644 Fax: (54-11) 4318-1777/4510-2220 ey.com |
| | |
REPORT ON THE REVIEW OF INTERIM CONDENSED
SEPARATE FINANCIAL STATEMENTS
To the Directors of
BANCO BBVA ARGENTINA S.A.
CUIT (Argentine taxpayer identification number): 30-50000319-3
Registered office: Av. Córdoba 111
City of Buenos Aires, Argentina
| I. | Report on the financial statements
|
Introduction
| 1. | We have reviewed the accompanying
interim condensed separate financial statements of BANCO BBVA ARGENTINA S.A. (the “Bank”), which comprise: (a) the condensed
separate statement of financial position as of March 31, 2023; (b) the condensed separate statements of income and other comprehensive
income, the changes in shareholders’ equity, and cash flows for the three-month period then ended, and (c) a summary of significant
accounting policies and other explanatory information included in the notes and exhibits that supplement them. |
Responsibility of the Bank’s
Management and Board of Directors in connection with the financial statements
| 2. | The Bank’s Management and
Board of Directors are responsible for the preparation and presentation of the financial statements mentioned in paragraph 1 in conformity
with the financial reporting framework set forth by the Central Bank of Argentina (BCRA) which, as indicated in note 2 to the financial
statements mentioned in paragraph 1, is based on IFRS (International Financial Reporting Standards), and in particular for the condensed
interim financial statements on the International Accounting Standard (“IAS”) 34 "Interim Financial Reporting",
as issued by the IASB (International Accounting Standards Board) and adopted by the FACPCE (Argentine Federation of Professional Councils
in Economic Sciences), including the exceptions established by the BCRA explained in such note. The Bank’s Board and Management
are also responsible for the internal control they may deem necessary for the interim financial statements to be prepared free of material
misstatements, whether due to errors or irregularities. |
Auditors’ responsibility
| 3. | Our responsibility is to conclude
on the financial statements mentioned in paragraph 1 based on our review, which was performed in accordance with the provisions of FACPCE
Technical Resolution No. 37 and with B.C.R.A. minimum external auditing standards applicable to the review of interim financial statements,
and in compliance with the ethical requirements relevant to the audit of the Bank’s annual financial statements. A review of interim
financial statements consists of making inquiries, mainly from the persons in charge of accounting and financial issues, as well as applying
analytical procedures and other review procedures. The scope of a review is considerably
narrower than that of a financial statements audit; therefore, we cannot obtain reasonable assurance that we will become aware of all
the material issues that may arise in an audit. Therefore, we do not express an audit opinion. |
A member firm of Ernst & Young Global Limited |
| Pistrelli, Henry Martin y Asociados S.R.L. 25 de mayo 487 - C1002ABI Buenos Aires, Argentina | Tel: (54-11) 4318-1600/4311-6644 Fax: (54-11) 4318-1777/4510-2220 ey.com |
| | |
| 4. | Based on our review, nothing
came to our attention making us believe that the financial statements mentioned in paragraph 1 are not prepared, in all material respects,
in accordance with the financial reporting framework set forth by the BCRA and referred to in paragraph 2. |
Emphasis on certain aspects disclosed in the
financial statements
| 5. | We would like to draw attention
to the information contained in the following notes to the financial statements mentioned in paragraph 1: |
| a) | Note 2. “Basis for the preparation of these financial
statements and applicable accounting standards – Applicable Accounting Standards” where the Bank quantifies the effects of
the application of section 5.5 “Impairment in value” of IFRS 9 “Financial instruments” to financial assets that
comprise exposures to the public sector, which were temporarily excluded from such application through BCRA Communiqué “A”
6847, which are explained in the note. |
| b) | Note 2. “Basis for the
preparation of these financial statements and applicable accounting standards - Applicable Accounting Standards” related to the
measurement of the remaining investment in Prisma Medios de Pago S.A., in which the Bank exposes that (i) in March 2022, the transfer
of the equity instruments measured at fair value was determined as set forth in Memorandum dated April 29, 2019 and March 22, 2021 received
by the BCRA, and (ii) had the IFRS been applied to determine the fair value referred to above, income (loss) for the three-month period
ended March 31, 2022 would have changed. |
These issues do not change the conclusion
stated in paragraph 4, but they should be taken into account by the users of IFRS for interpreting the accompanying financial statements
mentioned in paragraph 1.
| 6. | As further explained in Note
43. to the interim condensed separate interim financial statements mentioned in paragraph 1., certain accounting practices used by the
Bank to prepare the accompanying financial statements conform with the financial reporting framework set forth by the BCRA but may not
conform with the accounting principles generally accepted in other countries. |
A member firm of Ernst & Young Global Limited |
| Pistrelli, Henry Martin y Asociados S.R.L. 25 de mayo 487 - C1002ABI Buenos Aires, Argentina | Tel: (54-11) 4318-1600/4311-6644 Fax: (54-11) 4318-1777/4510-2220 ey.com |
| | |
Other matters
| 7. | We also issued a separate report
on the interim condensed consolidated financial statements of BANCO BBVA ARGENTINA S.A. and its subsidiaries as of the same date and for
the same period indicated in paragraph 1. |
| II. | Report on other legal and
regulatory requirements |
In compliance with current regulations,
we further report that:
| a) | The condensed
separate financial statements mentioned in paragraph 1 are being transcribed to the Book of Balance Sheets for Publication and result
from books kept, in their formal aspects, in conformity with the current regulations considering what was mentioned in note 2.7. to the
condensed consolidated financial statements. |
| b) | As of
March 31, 2023, liabilities accrued in contributions to the Integrated Pension Fund System resulting from the Bank’s accounting
books amounted to ARS 713,769,007, none of which was due and payable as of that date. |
| c) | As stated in note 47 to the condensed consolidated financial
statements as of such date, the Bank carries shareholders’ equity and a contra account to eligible assets that exceed the minimum
amounts required by relevant CNV (Argentine Securities Commission) regulations for these items as of March 31, 2023. |
City of Buenos Aires
May 23, 2023
PISTRELLI, HENRY MARTIN Y ASOCIADOS S.R.L. |
|
|
|
JAVIER J. HUICI |
Partner |
Certified Public Accountant (U.B.A.) |
|
A member firm of Ernst & Young Global Limited |
SUPERVISORY COMMITTEE’S REPORT
To the Shareholders of
Banco BBVA Argentina S.A.
Registered office: Av. Córdoba 111
City of Buenos Aires, Argentina
1. Identification of the interim financial statements subject
to review
In our capacity as members of the Supervisory Committee of Banco
BBVA Argentina S.A. (hereinafter, either “BBVA Argentina” or the “Entity”) designated at the General Ordinary
and Extraordinary Shareholders’ Meeting held on April 28, 2023, and in compliance with the terms of Section 294 of Argentine Companies
Law No. 19,550, we have reviewed the consolidated condensed interim financial statements and its subsidiaries as of March 31, 2023, which
include the consolidated condensed statement of financial position as of March 31, 2023, the consolidated condensed statements of income
and other comprehensive income, changes in shareholders’ equity, and cash flows for the three-month period then ended and a summary
of the significant accounting policies and other explanatory information included in their respective supplementary notes and exhibits,
as well as the separate condensed financial statements of BBVA Argentina as of March 31, 2023, and the separate condensed statement of
financial position as of March 31, 2023, the separate condensed statements of income, other comprehensive income, changes in shareholders’
equity and cash flows for the three-month period then ended, and a summary of the significant accounting policies and other explanatory
information included in their supplementary notes and exhibits.
In discharging our duties, we have examined the work performed by
the Entity’s external auditors PISTRELLI, HENRY MARTIN Y ASOCIADOS S.R.L., who, on May 23, 2023, issued their limited review report
on the interim financial statements as of March 31, 2023, including an unqualified conclusion.
The review of interim financial statements conducted by such auditors
is substantially lesser in scope than an audit and, therefore, is not sufficient to become aware of all substantial issues that might
arise during an audit. Therefore, the auditors do not render such an opinion on the financial statements referred to in section I.
Since the Supervisory Committee is not responsible for management
control, the review did not encompass the corporate criteria and decisions of the Entity’s several areas, for such issues are the
exclusive responsibility of the Board of Directors.
3. Supervisory Committee’s Opinion
Based on our review, we have no observations to raise, except as
stated in paragraph 4, on the accompanying interim financial statements of BBVA Argentina for the three-month period ended March 31, 2023
referred to in the first paragraph of Section 1 of this report. Furthermore, such financial statements reflect all substantial facts and
circumstances that are known to us.
4. Emphasis Matter
As explained in Note 2 to the accompanying consolidated and separate
financial statements, such financial statements were prepared by the Entity’s Board of Directors and Management in accordance with
the financial reporting framework set forth by the BCRA. Such financial reporting framework differs from the IFRS in the following aspects:
| i. | As stated in note 2. to the accompanying consolidated
and separate financial statements, “Basis for the preparation of these Financial Statements and applicable accounting standards
– Applicable Accounting Standards” where the Bank quantifies the effects of the application of section 5.5 “Impairment
in value” of IFRS 9 “Financial instruments” to financial assets that comprise exposures to the public sector, which
were temporarily excluded from such application through BCRA Communication “A” 6847, which are explained in the note. |
| ii. | As stated in note 2 to the accompanying consolidated
and separate financial statements. “Basis for the preparation of these financial statements and applicable accounting standards
- Applicable Accounting Standards” as regards measurement of the remaining shareholding of the Bank in Prisma Medios de Pago S.A.,
in which the Entity exposes that (i) in March 2022, the transfer of the equity instruments measured at fair value was consummated as set
forth in Memoranda dated April 29, 2019 and March 22, 2021 received by the BCRA, and (ii) had the IFRS been applied to determine the fair
value referred to above, income (loss) for the three-month period ended March 31, 2022 would have changed. |
5. Information Required by Applicable Provisions
In accordance with applicable legal and regulatory standards, we
hereby report that the accompanying consolidated and separate condensed interim financial statements are pending transcription into the
Financial Statements for Reporting Purposes book, and considering what was mentioned in Note 2.7 to the consolidated financial statements,
they arise from accounting records kept, in all formal aspects, in accordance with the laws in force.
We further represent that, during the reporting period, we have carried
out all duties, to the extent applicable, set forth in Section 294 of Argentine Companies Law No. 19,550.
We further represent that Dr. Gonzalo Vidal Devoto is expressly authorized
to individually sign, on behalf of the Supervisory Committee, all documents referred to in the first paragraph herein and all copies of
this report.
City of Buenos Aires, May 23, 2023.
GONZALO VIDAL DEVOTO |
ATTORNEY |
C.P.A.C.F. Volume°97- Page°
910
|
For the Supervisory Committee |
|
Banco BBVA Argentina (NYSE:BBAR)
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