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 March 2024

 

Commission File Number: 001-12568

 

 

BBVA Argentina Bank S.A.

(Translation of registrant’s name into English)

 

111 Córdoba Av, C1054AAA

Buenos Aires, Argentina

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

Form 20-F

X

   Form 40-F
 

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

 

Yes
 
   No

X

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

 

Yes
 
   No

X

 

Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

 

Yes
 
   No

X

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

 
 
 

 

 

Banco BBVA Argentina S.A.

 

 

TABLE OF CONTENTS

 

 

Item

  
   
1. Banco BBVA Argentina S.A. reports consolidated fourth quarter earnings for fiscal year 2023.
   
   

 

 
 

 

 

 

 

 
 

 

 

 
 

 

 
 

 

 
 

 

 

 
 
 

 

Banco BBVA Argentina S.A. announces Fourth Quarter and Fiscal Year 2023 results

Buenos Aires, March 5, 2024 – Banco BBVA Argentina S.A (NYSE; BYMA; MAE: BBAR; LATIBEX: XBBAR) (“BBVA Argentina” or “BBVA” or “the Bank”) announced today its consolidated results for the fourth quarter (4Q23), ended on December 31, 2023.

As of January 1, 2020, the Bank started to inform its inflation adjusted results pursuant to IAS 29 reporting. To facilitate comparison, figures of comparable quarters of 2022 and 2023 have been updated according to IAS 29 reporting to reflect the accumulated effect of inflation adjustment for each period up to December 31, 2023.

4Q23 & 2023 Highlights

·BBVA Argentina’s inflation adjusted net income in 4Q23 was $48.6 billion, 220.8% higher than the $15.2 billion reported on the third quarter of 2023 (3Q23), and 8.7% lower than the $53.2 billion reported on the fourth quarter of 2022 (4Q22). BBVA Argentina’s inflation adjusted net income for the twelve months of 2023 totaled $164.9 billion, 8.6% lower than the $180.4 billion reported in the twelve months of 2022.
·In 4Q23, BBVA Argentina posted an inflation adjusted average return on assets (ROAA) of 3.2% and an inflation adjusted average return on equity (ROAE) of 15.3%. In 2023, BBVA Argentina posted an inflation adjusted ROAA of 2.7% and an inflation adjusted ROAE of 13.0%.
·Operating income in 4Q23 was $477.9 billion, 86.4% higher than the $256.5 billion recorded in 3Q23 and 148.8% over the $192.1 billion recorded in 4Q22. In 2023, the accumulated operating income was $1.19 trillion, 86.4% above the $641.0 billion recorded in the same period of 2022.
·In terms of activity, total consolidated financing to the private sector in 4Q23 totaled $2.0 trillion, falling 5.7% in real terms compared to 3Q23, and contracting 12.3% compared to 4Q22. In the quarter, the variation was mainly driven by a decline in credit cards by 7.6%, in consumer loans by 21.5% and in other loans by 15.4%. This was offset by an increase in prefinancing and financing of exports by 54.7%. BBVA’s consolidated market share of private sector loans reached 9.85% as of 4Q23.
·Total consolidated deposits in 4Q23 totaled $3.6 trillion, decreasing 8.5% in real terms during the quarter, and 11.0% YoY. Quarterly decrease was mainly explained by a fall in time deposits and investment accounts, by 40.9% and 37.1% respectively. The Bank’s consolidated market share of private deposits reached 6.79% as of 4Q23.
·As of 4Q23, the non-performing loan ratio (NPL) reached 1.29%, with a 165.30% coverage ratio.
·The accumulated efficiency ratio in 4Q23 was 58.6%, improving compared to 3Q23’s 63.8%, and to 4Q22’s 63.9%.
·As of 4Q23, BBVA Argentina reached a regulatory capital ratio of 32.8%, entailing a $944.4 billion or 280.5% excess over minimum regulatory requirement. Tier I ratio was 32.8%.
·Total liquid assets represented 91.2% of the Bank’s total deposits as of 4Q23.
  
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Message from the CFO

“2023 ends with a new elect governing party, which has announced an adjustment plan to start correcting the strong macroeconomic distortions, which, among other measures, includes a significant reduction of fiscal deficit and a depreciation of the local currency to ease FX restrictions. In a context where uncertainty remains high, BBVA Research estimates an annual inflation near 175% by the end of 2024 (versus 211% at the end of 2023) and expects GDP to fall 4.0% this year (versus an estimated 1.6%1 fall in 2023). It is expected that the most intense recession and inflationary acceleration should happen in the first semester, while expectations improve for the second part of the year. In spite of its impact in the short term, and high associated risks, these adjustments could state the basis for a sustained reduction in inflation and a recovery in a potential growth for the economy from the second half of 2024 onwards.

As of December 2023, private credit in pesos for the system grew 133% YoY, while BBVA Argentina increased its private loan portfolio in pesos by 156%2. Neither the System, nor Bank’s YoY loan growth exceeded that of inflation (which reached 211.4% YoY as of December 2023). Nonetheless, consolidated market share increased 75 bps from 9.10% to 9.85% YoY. Regarding consolidated private deposits, the system grew 171% while the Bank grew 177%, without beating inflation in the year in both cases. Consolidated market share of deposits for BBVA Argentina was 6.79%, higher than the 6.64% recorded the prior year.

Referring to BBVA Argentina performance in 2023, a better operating income was the product of an improvement in interest income, due to an increase in the position and yield of Central Bank instruments and inflation linked bonds an improvement on income from loans and the results generated by dollarized assets towards year end. At the same time, the accumulated efficiency ratio decreased from 63.9% to 58.6% in 2023, mainly thanks to an improvement in income from interests in contrast with expenses, even in the inflationary context previously mentioned.

As of December 2023, BBVA Argentina reached an NPL ratio of 1.29%, way below the last available system NPL (December 2023) of 3.55%. Concerning liquidity and solvency indicators, the Bank ends the quarter with 91.2% and 32.8% respectively, levels which undoubtedly allow to address business growth in the case of an economic recovery.

On digitalization, our service offering has evolved in such way that by the end of December 2023, mobile monetary transactions increased 138% compared to the same period a year back. In the year, new client acquisition through digital channels over traditional ones was 75%, while in 2022 it was 72%.

Concerning the benefits BBVA Argentina offers its clients, on January 31, 2024, the Bank has inaugurated its new VIP area in the Ezeiza airport in Buenos Aires. The new space is open to all clients owning a Premium World or Visa Signature and Mastercard Black credit cards issued by BBVA in the country. This initiative is in line to the Puntos BBVA loyalty program, pretending to be the “bank for travelling”. It is noticeable that in December 2023, Argentina added 370.000 new clients, reaching 4.1 million total active customers, which represents a 10% increase compared to December 2022.

Regarding ESG, BBVA Argentina has a corporate responsibility with society, inherent to the Bank’s business model, which bolsters inclusion, financial education and supports scientific research and culture. The Bank works with the highest integrity, long-term vision and best practices, and is present through the BBVA Group in the main sustainability indexes.

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

Carmen Morillo Arroyo, CFO at BBVA Argentina

4Q23 Conference Call

Wednesday, March 6 - 12:00 p.m. Buenos Aires time (10:00 a.m. EST)

To participate please dial-in:

+ 54-11-3984-5677 (Argentina)

+ 1-844-450-3851 (United States)

+ 1-412-317-6373 (International)

Web Phone: click here

Código de la conferencia: BBVA

Webcast & Replay: click here

1 Source: Estimador Mensual de Actividad Económica (EMAE) December 2023

2 Source: BCRA capital balances as of the last day of each period. Siscen information as of December 31, 2023.

  
 2
 
 

Safe Harbor Statement

This press release contains certain forward-looking statements that reflect the current views and/or expectations of Banco BBVA Argentina and its management with respect to its performance, business and future events. We use words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “seek,” “future,” “should” and other similar expressions to identify forward-looking statements, but they are not the only way we identify such statements. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this release. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) changes in general economic, financial, business, political, legal, social or other conditions in Argentina or elsewhere in Latin America or changes in either developed or emerging markets, (ii) changes in regional, national and international business and economic conditions, including inflation, (iii) changes in interest rates and the cost of deposits, which may, among other things, affect margins, (iv) unanticipated increases in financing or other costs or the inability to obtain additional debt or equity financing on attractive terms, which may limit our ability to fund existing operations and to finance new activities, (v) changes in government regulation, including tax and banking regulations, (vi) changes in the policies of Argentine authorities, (vii) adverse legal or regulatory disputes or proceedings, (viii) competition in banking and financial services, (ix) changes in the financial condition, creditworthiness or solvency of the customers, debtors or counterparties of Banco BBVA Argentina, (x) increase in the allowances for loan losses, (xi) technological changes or an inability to implement new technologies, (xii) changes in consumer spending and saving habits, (xiii) the ability to implement our business strategy and (xiv) fluctuations in the exchange rate of the Peso. The matters discussed herein may also be affected by risks and uncertainties described from time to time in Banco BBVA Argentina’s filings with the U.S. Securities and Exchange Commission (SEC) and Comisión Nacional de Valores (CNV). Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as the date of this document. Banco BBVA Argentina is under no obligation and expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Information

This earnings release has been prepared in accordance with the accounting framework established by the Central Bank of Argentina (“BCRA”), based on International Financial Reporting Standards (“I.F.R.S.”) and the resolutions adopted by the International Accounting Standards Board (“I.A.S.B”) and by the Federación Argentina de Consejos Profesionales de Ciencias Económicas (“F.A.C.P.E.”), with the following exceptions:

a) The exclusion of the application of the IFRS 9 impairment model for non-financial public sector debt instruments.

b) In March 2022, the shares corresponding to the remaining participation in Prisma Medios de Pago S.A. (“Prisma”) were transferred, which were measured at fair value pursuant to April 29, 2019, and March 22, 2021 Memorandums received from the BCRA, and the income (loss) from their sale was recorded in the quarter ended March 31, 2022. Had IFRS rules been applied to determine the fair value mentioned, results for the quarter ended on December 31, 2022 would have been modified. Nonetheless, this does not generate differences regarding the value of equity as of December 31, 2022.

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

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

Financial statements of subsidiaries have been elaborated as of the same dates and periods as Banco BBVA Argentina S.A.’s. In the case of consolidated companies PSA and VWFS, financial statements were prepared considering the B.C.R.A. accounting framework for institutions belonging to “Group C”, considering the model established by the IFRS 9 5.5. “Impairment” section for periods starting as of January 1, 2022, excluding debt instruments from the non-financial public sector.

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

  
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Quarterly Results

INCOME STATEMENT BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
Net Interest Income         495,717         414,241         330,315            19.7%            50.1%
Net Fee Income           35,597           25,998           31,659            36.9%            12.4%
Net income from measurement of financial instruments at fair value through P&L          (69,688)           12,527           15,564  n.m   n.m 
Net income from write-down of assets at amortized cost and at fair value through OCI           29,523             6,236            (1,817)          373.4%  n.m 
Foreign exchange and gold gains         197,454             3,280             1,147  n.m   n.m 
Other operating income           21,698           16,331           17,051            32.9%            27.3%
Loan loss allowances          (20,696)          (11,831)          (22,882)          (74.9%)              9.6%
Net operating income         689,605         466,782         371,037            47.7%            85.9%
Personnel benefits          (66,717)          (65,020)          (57,075)            (2.6%)          (16.9%)
Adminsitrative expenses          (51,159)          (72,574)          (54,200)            29.5%              5.6%
Depreciation and amortization            (7,545)            (6,700)          (10,432)          (12.6%)            27.7%
Other operating expenses          (86,241)          (66,028)          (57,230)          (30.6%)          (50.7%)
Operarting expenses        (211,662)        (210,322)        (178,937)            (0.6%)          (18.3%)
Operating income         477,943         256,460         192,100            86.4%          148.8%
Income from associates                  57                  27                371          111.1%          (84.6%)
Income from net monetary position        (355,500)        (233,109)        (113,786)          (52.5%)        (212.4%)
Net income before income tax          122,500           23,378           78,685          424.0%            55.7%
Income tax          (73,883)            (8,225)          (25,436)  n.m         (190.5%)
Net income for the period           48,617           15,153           53,249          220.8%            (8.7%)
Owners of the parent           49,214           14,763           53,989          233.4%            (8.8%)
Non-controlling interests               (597)                390               (740)        (253.1%)            19.3%
           
Other comprehensive Income (OCI) (1)         203,403          (14,934)          (16,821)  n.m   n.m 
Total comprehensive income         252,020                219           36,428  n.m   n.m 
           
(1) Net of Income Tax.          

BBVA Argentina 4Q23 net income was $48.6 billion, increasing 220.8% or $33.5 billion quarter-over-quarter (QoQ) and falling 8.7% or $13.1 billion year-over-year (YoY). This implied a quarterly ROAE of 15.3% and a quarterly ROAA of 3.2%.

Quarterly operating results are mainly explained by (i) better foreign exchange and gold gains, specially due to a greater position in Dual National Treasury bonds, (ii) better net interest income results, (iii) better net income from write-down of assets at amortized cost and at Fair Value (FV) through Other Comprehensive Income (OCI) mainly due to the sale of inflation linked bonds (through the exercise of put options with the BCRA), and (iv) lower administrative expenses. These effects were negatively affected by (i) a lower net income from measurement of financial instruments at FV through P&L, explained by the valuation of the greater position in Dual bonds, and (ii) greater operating expenses.

In 3Q23, there is a positive effect in the income tax line, considering the final judgments dictated by the Supreme Court of Justice concerning fiscal years 2014 and 2013, rejecting the extraordinary appeal and the claim presented by the tax authorities, and affirming the prior favorable final judgments.

  
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Net Income for the period was highly impacted by income from net monetary position, as inflation on 3Q23 was lower than 4Q23’s (53.3% in 4Q23 compared to 34.8%3 in 3Q23).

Lastly, the OCI line totaled a gain of $203.4 billion, mainly due to results of financial instruments at fair value through OCI, particularly through the revaluation of inflation-linked (CER) National Treasury bond portfolio.

Income Statement – 12 month accumulated

INCOME STATEMENT - 12 MONTH ACCUMULATED BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted      
  2023 2022 ∆ %
Interest income      3,183,947      1,959,831            62.5%
Interest expense     (1,555,015)        (902,795)          (72.2%)
Net interest income      1,628,932      1,057,036            54.1%
Fee income         254,797         253,732              0.4%
Fee expenses        (115,842)        (108,172)            (7.1%)
Net fee income         138,955         145,560            (4.5%)
Net income from financial instruments at fair value through P&L          (23,988)           56,604        (142.4%)
Net loss from write-down of assets at amortized cost and fair value through OCI           40,591                903  n.m 
Foreign exchange and gold gains         210,110           25,152  n.m 
Other operating income           67,248           65,900              2.0%
Loan loss allowances          (76,383)          (60,663)          (25.9%)
Net operating income      1,985,465      1,290,492            53.9%
Personnel benefits        (248,101)        (211,686)          (17.2%)
Administrative expenses        (249,465)        (212,198)          (17.6%)
Depreciation and amortization          (28,677)          (34,171)            16.1%
Other operating expenses        (264,304)        (191,471)          (38.0%)
Operating expenses        (790,547)        (649,526)          (21.7%)
Operating income      1,194,918         640,966            86.4%
Income from associates and joint ventures             1,157            (1,453)          179.6%
Income from net monetary position        (894,048)        (446,887)        (100.1%)
Income before income tax         302,027         192,626            56.8%
Income tax        (137,088)          (12,215)  n.m 
Income for the period         164,939         180,411            (8.6%)
Owners of the parent         164,542         183,153          (10.2%)
Non-controlling interests                397            (2,742)          114.5%
       
Other comprehensive Income (OCI) (1)         197,622          (27,578)  n.m 
Total comprehensive income         362,561         152,833          137.2%
(1) Net of Income Tax.      

During 2023, BBVA Argentina net income was $164.9 billion, 8.6% lower than the $180.4 billion reported in 2022. This implied an accumulated annualized ROAE of 13.0% and a ROAA of 2.7% in 2023, compared to an accumulated annualized ROAE of 17.5% and a ROAA of 3.0% in 2022.

The 86.4% increment in real terms of the Bank’s operating income is mainly explained by (i) an increase in interest income, mostly due to an increase in the position and yield of Central Bank instruments and CER bonds, as well as interests from loans. What also stands out is (ii) the increase in the foreign exchange and gold gains line due to a higher position in dollarized assets and (iii) net income from write-down of assets at FV through OCI, mainly due to the sale of corporate bonds in 3Q23 and the exercise of a put option on inflation linked bonds in 4Q23.

3 Source: Instituto Nacional de Estadística y Censos (INDEC).

  
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These effects were negatively offset by (i) lower income from financial instruments at FV through P&L due to the valuation of Dual bonds in 4Q23, (ii) other operating expenses, mainly affected by the increase in the turnover tax from a greater income from LELIQ, and (iii) greater administrative expenses, mainly due to expenses related to software and licenses hired through the controlling company abroad. Administrative expenses increased 17.6% YoY, explained by the increase in the provision of these expenses, in line with the expectations of devaluation of the FX rate, which decreased at year end and impacted positively in 4Q23.

In the year, net fee income decreased 4.5%, as a consequence of a 0.4% increase in fee income and a 7.1% in fee expenses. This is mainly explained by greater expenses in foreign currency and payroll marketing campaigns, together with a fall in fees related to bundle fees and the Puntos BBVA loyalty program. As of December 2023, BBVA Argentina gained more than 370.000 clients, reaching 4.1 million total active clients, which represents a 10% increase compared to December 2022.

Another factor to consider is the income tax line, which represented only a $12.2 million loss, explained by the implications of fiscal inflation adjustments in the determination of payable taxes and tax deferrals, recorded during the second quarter of 2022.

Additionally, net income is affected by income from net monetary position in a context of higher inflation (211.4% 2023 twelve month accumulated, versus 94.8% accumulated in the same period of 20224).

EARNINGS PER SHARE BBVA ARGENTINA CONSOLIDATED
        ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
Financial Statement information          
Net income for the period attributable to owners of the parent (in AR$ millions, inflation adjusted)           49,214           14,763           53,989          233.4%            (8.8%)
Total shares outstanding (1)         612,710         612,710         612,710                     -                     -
Market information          
Closing price of ordinary share at BYMA (in AR$)          1,775.3          1,024.4             455.2            73.3%          290.0%
Closing price of ADS at NYSE (in USD)                 5.4                 4.2                 3.9            31.1%            39.5%
Book value per share (in AR$)        1,424.14        1,172.05        1,139.38            21.5%            25.0%
Price-to-book ratio (BYMA price) (%)               1.25               0.87               0.40            42.6%          212.0%
Earnings per share (in AR$)             80.32             24.09             88.12          233.4%            (8.8%)
Earnings per ADS(2) (in AR$)           240.97             72.28           264.35          233.4%            (8.8%)
           
(1) In thousands of shares.          
(2) Each ADS accounts for 3 ordinary shares          

4 Source: Instituto Nacional de Estadística y Censos (INDEC).

  
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Net Interest Income

NET INTEREST INCOME BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
Net Interest Income         495,717         414,241         330,315            19.7%            50.1%
Interest Income         879,638         899,637         628,160            (2.2%)            40.0%
From government securities         212,005         352,460         266,722          (39.8%)          (20.5%)
From private securities                931             1,047                514          (11.1%)            81.1%
Interest from loans and other financing         335,586         308,643         221,628              8.7%            51.4%
Financial Sector             2,671             1,094             1,553         144.1%           72.0%
Overdrafts           42,619           47,328           31,679            (9.9%)           34.5%
Discounted Instruments         121,291           94,895           43,977           27.8%         175.8%
Mortgage loans             1,088             1,336             2,144          (18.6%)          (49.3%)
Pledge loans             9,224             9,678             8,711            (4.7%)             5.9%
Consumer Loans           33,886           32,454           27,889             4.4%           21.5%
Credit Cards           75,317           69,854           62,009             7.8%           21.5%
Financial leases             2,486             2,545             2,022            (2.3%)           22.9%
Loans for the prefinancing and financing of exports             1,081                527                441         105.1%         145.1%
Other loans           45,923           48,932           41,203            (6.1%)           11.5%
Premiums on reverse REPO transactions         160,569         117,429           33,942            36.7%          373.1%
CER/UVA clause adjustment         169,863         119,511         104,961            42.1%            61.8%
Other interest income                684                547                393            25.0%            74.0%
Interest expenses         383,921         485,396         297,845          (20.9%)            28.9%
Deposits         365,856         469,301         269,513          (22.0%)            35.7%
Checking accounts           90,186         125,370           30,101          (28.1%)         199.6%
Savings accounts             2,482             1,621             1,540           53.1%           61.2%
Time deposits         222,012         280,881         172,423          (21.0%)           28.8%
Investment accounts           51,176           61,429           65,449          (16.7%)          (21.8%)
Other liabilities from financial transactions             3,612                287                556  n.m   n.m 
Interfinancial loans received             6,373             7,245             7,592          (12.0%)          (16.1%)
Premiums on  REPO transactions                    2                  23                  13          (91.3%)          (84.6%)
CER/UVA clause adjustment             8,077             8,535           20,161            (5.4%)          (59.9%)
Other interest expense                    1                    5                  10          (80.0%)          (90.0%)

Net interest income for 4Q23 was $495.7 billion, increasing 19.7% or $81.5 billion QoQ, and 50.1% or $165.4 billion YoY. In 4Q23, interest income, in monetary terms, decreased more than interest expense, mainly due to lower income from government securities.

In 4Q23, interest income totaled $879.6 billion, falling 2.2% compared to 3Q23 and increasing 40.0% compared to 4Q22. Quarterly decrease is mainly driven by a fall in income from government securities, especially LELIQ, which issuance was terminated by the Central Bank in December, reducing its volume on year end. This was partially offset by (i) a better income from REPO premiums (which turned into the main liquidity instrument and the new monetary policy rate), and (ii) income from inflation linked bonds and loans.

Income from government securities decreased 39.8% compared to 3Q23, and 20.5% compared to 4Q22. This is partially due to the lower average position in LELIQ, as previously explained. 94% of these results are explained by government securities at fair value through OCI (of which 72% are BCRA securities) and 5% by securities at amortized cost (2027 National Treasury Bonds at fixed rate, National Treasury Bonds Private 0.70 Badlar Rate maturing on November 2027, and National Treasury Bonds CER 2025, used for reserve requirement integration).

  
 7
 
 

Interest income from loans and other financing totaled $335.6 billion, increasing 8.7% QoQ and 51.4% YoY. Quarterly growth is mainly due to an increase in rates (October 2023), especially through the discounted instruments line by 27.8%, due to a reduction in productive investment credit lines for SMEs together with the rate increase as mentioned before.

Income from CER/UVA adjustments increased 42.1% QoQ and 61.8% YoY. Quarterly increase is explained by the delay with which the inflation adjustment effects are recorded, and impact on the subsequent financial statements, with a quarterly inflation above the previous quarter. 80% of income from interests from CER/UVA clause adjustments is explained by interests generated by bonds linked to such indexes.

Interest expenses totaled $383.9 billion, denoting a 20.9% decrease QoQ and a 28.9% increase YoY. Quarterly decline is described by lower time deposit and checking accounts expenses (in particular interest-bearing checking accounts).

Interests from time deposits (including investment accounts) explain 71.2% of interest expenses, versus 70.5% the previous quarter. These decreased 21.0% QoQ and increased 28.8% YoY.

NIM

As of 4Q23, net interest margin (NIM) was 50.0%, above the 36.0% reported in 3Q23. In 4Q23, NIM in pesos was 55.1% and 1.5% in U.S. dollars. In 2023, NIM was 37.3% compared to 24.5% in 2022.

ASSETS & LIABILITIES PERFORMANCE - TOTAL BBVA ARGENTINA CONSOLIDATED
In millions of AR$. Rates and spreads in annualized %                
  4Q23 3Q23 4Q22
  Average Balance Interest Earned/Paid Average Real Rate Average Balance Interest Earned/Paid Average Real Rate Average Balance Interest Earned/Paid Average Real Rate
Total interest-earning assets        3,932,650             879,638 88.7%        4,570,330             899,637 78.1%        4,325,825             628,375 57.6%
Debt securities        1,857,544             508,737 108.7%        2,368,790             564,370 94.5%        2,132,501             380,669 70.8%
Loans to customers/financial institutions        1,941,715             370,895 75.8%        2,106,397             335,259 63.1%        2,093,643             247,700 46.9%
Loans to the BCRA                  206                        4 7.7%                  162                        5 11.2%                      3                        3 396.7%
Other assets           133,185                        2 0.0%             94,981                        3 0.0%             99,678                        3 0.0%
Total non interest-earning assets        1,337,837                       -    0.0%        1,370,630                       -    0.0%        1,392,310                  (215) -0.1%
Total Assets        5,270,487             879,638 66.2%        5,940,960             899,637 60.1%        5,718,135             628,160 43.6%
Total interest-bearing liabilities        2,388,880             383,921 63.8%        3,104,553             485,396 62.0%        2,903,951             297,845 40.7%
Savings accounts           939,561                 2,482 1.0%        1,000,061                 1,620 0.6%        1,047,323                 1,541 0.6%
Time deposits and investment accounts        1,011,813             281,266 110.3%        1,483,857             350,842 93.8%        1,558,355             258,031 65.7%
Debt securities issued             10,559                 3,400 127.8%                     -                           6 -                  389                    283 288.8%
Other liabilities           426,947               96,773 89.9%           620,636             132,927 85.0%           297,883               37,989 50.6%
Total non-interest-bearing liabilities        2,881,607                       -    0.0%        2,836,407                       -    0.0%        2,814,184                       -    0.0%
Total liabilities and equity        5,270,487             383,921 28.9%        5,940,960             485,396 32.4%        5,718,135             297,845 20.7%
                   
NIM - Total     50.0%     36.0%     30.3%
Spread - Total     25.0%     16.1%     16.9%
                   
Nominal rates are calculated over a 365-day year
Does not include Net income from measurement of financial instruments at fair value through P&L nor Net income from write-down of assets at amortized cost and at fair value through OCI
Interest-bearing checking accounts included in other interest-bearing liabilities. Non interest-bearing accounts are included in non-interest-bearing liabilities.

  
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ASSETS & LIABILITIES PERFORMANCE - AR$ BBVA ARGENTINA CONSOLIDATED
In millions of AR$. Rates and spreads in annualized %                
  4Q23 3Q23 4Q22
  Average Balance Interest Earned/Paid Average Real Rate Average Balance Interest Earned/Paid Average Real Rate Average Balance Interest Earned/Paid Average Real Rate
Total interest-earning assets        3,558,917             878,044 97.9%        4,366,349             898,426 81.6%        4,150,384             627,455 60.0%
Debt securities        1,623,265             508,665 124.3%        2,306,668             564,186 97.0%        2,098,386             380,587 72.0%
Loans to customers/financial institutions        1,806,969             369,375 81.1%        1,964,920             334,235 67.5%        1,975,657             246,865 49.6%
Loans to the BCRA                  205                        4 7.7%                  161                        5 11.3%                      3                        3 396.7%
Other assets           128,478                       -    0.0%             94,599                       -    0.0%             76,338                       -    0.0%
Total non interest-earning assets           684,120                       -    0.0%           646,707                       -    0.0%           685,131                       -    0.0%
Total Assets        4,243,037             878,044 82.1%        5,013,056             898,426 71.1%        4,835,515             627,455 51.5%
Total interest-bearing liabilities        1,855,948             383,736 82.0%        2,515,449             485,179 76.5%        2,327,538             297,746 50.8%
Savings accounts           482,535                 2,473 2.0%           500,986                 1,611 1.3%           549,852                 1,532 1.1%
Time deposits and Investment accounts           938,784             281,234 118.9%        1,401,864             350,809 99.3%        1,482,970             257,995 69.0%
Debt securities issued             10,559                 3,400 127.8%                     -                           6 -                  389                    283 288.8%
Other liabilities           424,070               96,629 90.4%           612,599             132,753 86.0%           294,327               37,936 51.1%
Total non-interest-bearing liabilities        2,555,028                       -    0.0%        2,552,154                       -    0.0%        2,528,216                       -    0.0%
Total liabilities and equity        4,410,976             383,736 34.5%        5,067,604             485,179 38.0%        4,855,754             297,746 24.3%
                   
NIM - AR$     55.1%     37.5%     31.5%
Spread - AR$     15.9%     5.1%     9.2%
                   
Nominal rates are calculated over a 365-day year
Does not include Net income from measurement of financial instruments at fair value through P&L nor Net income from write-down of assets at amortized cost and at fair value through OCI
Interest-bearing checking accounts included in other interest-bearing liabilities. Non interest-bearing accounts are included in non-interest-bearing liabilities.

ASSETS & LIABILITIES PERFORMANCE - FOREIGN CURRENCY BBVA ARGENTINA CONSOLIDATED
In millions of AR$. Rates and spreads in annualized %                
  4Q23 3Q23 4Q22
  Average Balance Interest Earned/Paid Average Real Rate Average Balance Interest Earned/Paid Average Real Rate Average Balance Interest Earned/Paid Average Real Rate
Total interest-earning assets            373,733                 1,594 1.7%         203,981                 1,213 2.4%         175,441                    922 2.1%
Debt securities            234,279                      72 0.1%           62,122                    185 1.2%           34,115                      84 1.0%
Loans to customers/financial institutions            134,746                 1,520 4.5%         141,476                 1,024 2.9%         117,986                    835 2.8%
Loans to the BCRA                       1                       -    0.0%                    2                       -    0.0%                   -                          -    #DIV/0!
Other assets                4,707                        2 0.2%                382                        3 3.2%           23,340                        3 0.1%
Total non interest-earning assets            653,717                       -    0.0%         723,923                       -    0.0%         707,179                  (215) -0.1%
Total Assets         1,027,450                 1,594 0.6%         927,905                 1,213 0.5%         882,619                    707 0.3%
Total interest-bearing liabilities            532,932                    185 0.1%         589,104                    219 0.1%         576,412                    100 0.1%
Savings accounts            457,026                        9 0.0%         499,075                        9 0.0%         497,471                        9 0.0%
Time deposits and Investment accounts              73,029                      32 0.2%           81,993                      35 0.2%           75,386                      37 0.2%
Other liabilities                2,877                    144 19.9%             8,037                    175 8.6%             3,556                      53 5.9%
Total non-interest-bearing liabilities            326,579                       -    0.0%         284,253                       -    0.0%         285,969                       -    0.0%
Total liabilities and equity            859,511                    185 0.1%         873,357                    219 0.1%         862,381                    100 0.0%
                   
NIM - Foreign currency     1.5%     1.9%     1.9%
Spread - Foreign currency     1.6%     2.2%     2.0%
                   
Nominal rates are calculated over a 365-day year
Does not include Net income from measurement of financial instruments at fair value through P&L nor Net income from write-down of assets at amortized cost and at fair value through OCI
Interest-bearing checking accounts included in other interest-bearing liabilities. Non interest-bearing accounts are included in non-interest-bearing liabilities.
  
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ASSETS & LIABILITIES PERFORMANCE - TOTAL BBVA ARGENTINA CONSOLIDATED
In millions of AR$. Rates and spreads in annualized %          
  2023 2022
  Average Balance Interest Earned/Paid Average Real Rate Average Balance Interest Earned/Paid Average Real Rate
Total interest-earning assets           4,366,733         3,183,947 72.9%         4,322,739         1,959,831 45.3%
Debt securities           2,212,912         1,919,153 86.7%         2,131,856         1,155,636 54.2%
Loans to customers/financial institutions           2,060,273         1,264,739 61.4%         2,115,672            804,157 38.0%
Loans to the BCRA                      95                    44 46.3%                      6                    28 450.0%
Other assets               93,453                    11 0.0%              75,205                      9 0.0%
Total non interest-earning assets           1,406,947                     -    0.0%         1,536,186                     -    0.0%
Total Assets           5,773,680         3,183,947 55.1%         5,858,925         1,959,831 33.5%
Total interest-bearing liabilities           2,890,120         1,555,015 53.8%         3,020,545            902,795 29.9%
Savings accounts           1,023,768                7,157 0.7%         1,130,718                4,998 0.4%
Time deposits and investment accounts           1,420,930         1,206,357 84.9%         1,483,088            744,992 50.2%
Debt securities issued                 2,668                3,588 134.5%                  975                1,314 134.8%
Other liabilities              442,754            337,913 76.3%            405,764            151,490 37.3%
Total non-interest-bearing liabilities           2,883,560                     -    0.0%         2,838,381                     -    0.0%
Total liabilities and equity           5,773,680         1,555,015 26.9%         5,858,925            902,795 15.4%
             
NIM - Total     37.3%     24.5%
Spread - Total     19.1%     15.4%
             
Nominal rates are calculated over a 365-day year
Does not include Net income from measurement of financial instruments at fair value through P&L nor Net income from write-down of assets at amortized cost and at fair value through OCI
Interest-bearing checking accounts included in other interest-bearing liabilities. Non interest-bearing accounts are included in non-interest-bearing liabilities.

Net Fee Income

NET FEE INCOME BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
Net Fee Income           35,597           25,998           31,659            36.9%            12.4%
Fee Income           70,749           59,564           61,584            18.8%            14.9%
Linked to liabilities           17,813           21,164           26,176          (15.8%)          (31.9%)
From credit cards (1)           37,090           26,076           23,935            42.2%            55.0%
Linked to loans             7,806             5,502             5,516            41.9%            41.5%
From insurance             2,229             2,469             2,656            (9.7%)          (16.1%)
From foreign trade and foreign currency transactions             2,762             2,558             2,530              8.0%              9.2%
Other fee income             2,919             1,691                771            72.6%          278.6%
Linked to loan commitments                130                104                   -               25.0%  N/A 
From guarantees granted                  33                  29                    3            13.8%  n.m 
Linked to securities             2,886             1,662                768            73.6%          275.8%
Fee expenses           35,152           33,566           29,925              4.7%            17.5%
 (1) Includes results from Puntos BBVA royalty program pursuant to IFRS 15 regulation.        

Net fee income as of 4Q23 totaled $35.6 billion, increasing 36.9% or $9.6 billion QoQ and 12.4% or $3.9 billion YoY.

In 4Q23, fee income totaled $70.7 billion, increasing 18.8% QoQ and 14.9% YoY. The quarterly increase is mainly explained by a 41.9% growth in fees from credit cards, due to a lower expense related to Puntos BBVA loyalty program, and higher activity combined with an increase in prices.

Regarding fee expenses, these totaled $35.2 billion, increasing 4.7% QoQ and 17.5% YoY. Greater expenses are explained by fees paid in foreign exchange transactions related to royalties affected by the devaluation of the local currency, payroll marketing campaigns.

  
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Net Income from Measurement of Financial Instruments at Fair Value and Foreign Exchange and Gold Gains/Losses

NET INCOME FROM FINANCIAL INSTRUMENTS AT FAIR VALUE (FV) THROUGH P&L BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
Net Income from financial instruments at FV through P&L               (69,688)           12,527           15,564  n.m   n.m 
Income from government securities               (90,196)             8,084           15,281  n.m   n.m 
Income from private securities                      848                578             1,762            46.7%          (51.9%)
Interest rate swaps                        (3)               (109)                 (49)            97.2%            93.9%
Income from foreign currency forward transactions                 19,574             2,967            (1,359)  n.m   n.m 
Income from put option long position                    (278)                   -                    (72)  N/A         (286.1%)
Income from corporate bonds                      367             1,007                    1          (63.6%)  n.m 

In 4Q23, net income from financial instruments at fair value (FV) through P&L was a loss of $69.7 billion, decreasing 656.3% or $82.2 billion QoQ and 547.8% or $85.3 billion YoY.

Quarterly results are mainly explained by a decrease in the income from government securities line item, due to the valuation of National Treasury’s Dual bonds at fair value through P&L.

DIFFERENCES IN QUOTED PRICES OF GOLD AND FOREIGN FOREIGN CURRENCY BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
Foreign exchange and gold gains/(losses) (1)         197,454             3,280             1,147  n.m   n.m 
From foreign exchange position         186,654            (6,789)            (6,187)  n.m   n.m 
Income from purchase-sale of foreign currency           10,800           10,069             7,334              7.3%            47.3%
Net income from financial instruments at FV through P&L (2)           19,574             2,967            (1,359)  n.m   n.m 
Income from foreign currency forward transactions           19,574             2,967            (1,359)  n.m   n.m 
Total differences in quoted prices of gold & foreign currency (1) + (2)         217,028             6,247               (212)  n.m   n.m 

 

In 4Q23, the total differences in quoted prices of gold and foreign currency showed profit for $217.0 billion, increasing 3,374.1% or $210.8 billion compared to 3Q23.

The quarterly increase in foreign exchange and gold gains is mainly explained by a higher result from income from foreign exchange position, mainly due to Dual bonds, and also from income from foreign currency forward transactions.

  
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Other Operating Income

OTHER OPERATING INCOME BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
Operating Income           21,698           16,331           17,051            32.9%            27.3%
Rental of safe deposit boxes (1)             2,042             2,119             2,075            (3.6%)            (1.6%)
Adjustments and interest on miscellaneous receivables (1)             9,228             7,124             6,151            29.5%            50.0%
Punitive interest (1)                685                680                473              0.7%            44.8%
Loans recovered             2,296             1,754             4,027            30.9%          (43.0%)
Fee income from credit and debit cards (1)             1,184             1,183                731              0.1%            62.0%
Fee expenses recovery                619                599                648              3.3%            (4.5%)
Rents                541                639                615          (15.3%)          (12.0%)
Sindicated transaction fees                222                256                160          (13.3%)            38.8%
Disaffected provisions                532                231                563          130.3%            (5.5%)
Other Operating Income(2)             4,349             1,746             1,608          149.1%          170.5%
(1) Included in the efficiency ratio calculation          
(2) Includes some of the concepts used in the efficiency ratio calculation          

In 4Q23 other operating income totaled $21.7 billion, growing 32.9% or $5.4 billion QoQ, and 27.3% or $4.6 billion YoY. Quarterly increase is partially explained by a 29.5% growth in the Adjustments and interest on miscellaneous receivables line item (mainly loans related to Prisma sale, affected by the depreciation of the FX rate and inflation), followed by a 149.1% increase in the other operating income line, the latter due to the recovery generated by the provision of the valuation of bonds used to make dividend payments during 2023, considering the volatility in these bonds’ price.

  
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Operating Expenses

Personnel Benefits and Administrative Expenses

PERSONNEL BENEFITS & ADMINISTRATIVE EXPENSES BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
Total Personnel Benefits and Adminsitrative Expenses         117,876         137,594         111,275          (14.3%)              5.9%
Personnel Benefits (1)           66,717           65,020           57,075              2.6%            16.9%
Administrative expenses (1)           51,159           72,574           54,200          (29.5%)            (5.6%)
Travel expenses                377                518             1,157          (27.2%)          (67.4%)
Outsourced administrative expenses             6,708             9,286             6,097          (27.8%)            10.0%
Security services             1,370             1,601             1,353          (14.4%)              1.3%
Fees to Bank Directors and Supervisory Committee                131                  60                126          118.3%              4.0%
Other fees             1,380             2,129             2,031          (35.2%)          (32.1%)
Insurance                517                500                462              3.4%            11.9%
Rent             4,751           10,300             7,040          (53.9%)          (32.5%)
Stationery and supplies                106                125                  59          (15.2%)            79.7%
Electricity and communications             2,251             2,050             1,926              9.8%            16.9%
Advertising             3,000             3,275             3,043            (8.4%)            (1.4%)
Taxes           14,489           13,552           12,056              6.9%            20.2%
Maintenance costs             5,613             5,411             5,383              3.7%              4.3%
Armored transportation services             5,329             5,143             5,033              3.6%              5.9%
Software            (1,017)           13,191             4,268        (107.7%)        (123.8%)
Document distribution             1,673             1,610             1,434              3.9%            16.7%
Commercial reports                945             1,024             1,016            (7.7%)            (7.0%)
Other administrative expenses             3,536             2,799             1,716            26.3%          106.1%
           
Headcount*          
BBVA (Bank)             5,918             5,919             5,765                   (1)                153
Subsidiaries (2)                  91                  92                  93                   (1)                   (2)
Total employees*             6,009             6,011             5,858                   (2)                151
In branches**             2,214             2,193             1,877                  21                337
At Main office             3,795             3,818             4,011                 (23)               (216)
           
Total branches***                243                243                243                   -                      -   
Own                112                113                113                   (1)                   (1)
Rented                131                130                130                    1                    1
                                   -  
Efficiency Ratio          
Efficiency ratio 46.4% 82.4% 53.0%      (3,602)bps         (665)bps
Accumulated Efficiency Ratio 58.6% 63.8% 63.9%         (522)bps         (536)bps
           
(1) Concept included in the efficiency ratio calculation
(2) Includes BBVA Asset Management, PSA & VWFS. Employees included in Main Office.
*Total effective employees, net of temporary contract employees. Expatriates excluded.
**Branch employees + Business Center managers
***Excludes administrative branches

During 4Q23, personnel benefits and administrative expenses totaled $117.9 billion, decreasing 14.3% or $19.7 billion compared to 3Q23, and increasing 5.9% or $6.6 billion compared to 4Q22.

  
 13
 
 

Personnel benefits increased 2.6% QoQ, and 16.9% YoY. The quarterly change is mainly explained by the inflation adjustment of vacation stock provisions and variable compensations. This adjustment is applied retroactively to the last twelve months.

As of 4Q23, administrative expenses fell 29.5% QoQ, and 5.6% YoY. This is explained by (i) outsourced administrative expenses, (ii) greater rent expenses, and (iii) an increase in software services. All of these were related to an increase in the amount of services contracted with the Parent company, offset by the update of the provision on these expenses in line with the FX rate depreciation estimates at quarter-end.

The quarterly efficiency ratio as of 4Q23 was 46.4%, improving compared to the 82.4% reported in 3Q23, and versus the 53.0% reported in 4Q22. The quarterly decrease is explained by a decrease in the numerator (expenses) and an increase in the denominator (income considering monetary position results), especially due to an increase in results from income from foreign exchange and gold gains, as well as income from write-down of assets at amortized cost and OCI.

The accumulated efficiency ratio as of 4Q23 was 58.6%, improving compared to the 63.8% reported in 3Q23, and the 63.9% reported in 4Q22. The improvement in this ratio is due to a lower increase in expenses versus net income, considering monetary position results. This positive variation in the ratio is due mainly to better income from write-down of assets at amortized cost and OCI, and income from foreign exchange and gold gains.

Other Operating Expenses

OTHER OPERATING EXPENSES BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
Other Operating Expenses           86,241           66,028           57,230            30.6%            50.7%
Turnover tax           60,423           56,111           37,533              7.7%            61.0%
Initial loss of loans below market rate             5,146             1,793             3,089          187.0%            66.6%
Contribution to the Deposit Guarantee Fund (SEDESA)             1,279             1,465             1,486          (12.7%)          (13.9%)
Interest on liabilities from financial lease                479                418                430            14.6%            11.4%
Other allowances           11,703                593             9,326  n.m             25.5%
Loss for sale or depreciation of investment property and other non financial assets                238                   -                     38  N/A   n.m 
Other operating expenses             6,973             5,648             5,328            23.5%            30.9%

In 4Q23, other operating expenses totaled $86.2 billion, increasing 30.6% or $20.2 billion QoQ, and 50.7% or $29.0 billion YoY.

The key factor explaining the quarterly growth is the 1,874.5% increase in the other allowances line, related to the update in provisions for overdraft credit lines, taking into consideration an increase in credit card limits and commercial overdraft lines in foreign currency affected by the FX rate devaluation. An increase must also be noted in the turnover tax line item, especially due to an increased revenue from interests from loans and revenues from REPO and LEDIV.

  
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Income from Associates

This line reflects the results from non-consolidated associate companies. During 4Q23, a profit of $57 million has been reported, mainly due to the Bank’s participation in BBVA Seguros Argentina S.A., Rombo Compañía Financiera S.A., Interbanking S.A. and Play Digital S.A. and Openpay Argentina S.A.

Income Tax

Accumulated income tax during the first twelve months of 2023 recorded a loss of $137.1 billion. As of 4Q23, income tax expense was $73.9 billion.

In 3Q23, there was a positive effect in the income tax line, considering the final judgments dictated by the Supreme Court of Justice concerning fiscal years 2014 and 2013, rejecting the extraordinary appeal and the claim presented by the tax authorities, and affirming the prior favorable final judgments.

The twelve month accumulated effective tax rate in 2023 was 45%5.

Accumulated income tax during the first twelve months of 2022 recorded a loss of only $12.2 billion. In regards the second quarter of 2022, income tax showed a positive result, affected by the implications of inflation adjustments in the determination of payable taxes and tax deferrals.

5 Income tax, according to IAS 34, is recorded on interim financial periods over the best estimate of the weighted average tax rate expected for the fiscal year.

  
 15
 
 

 

Balance sheet and activity

Loans and Other Financing

LOANS AND OTHER FINANCING BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
To the public sector                  145                    86                      32        68.6%       353.1%
To the financial sector             16,432               8,328               13,904        97.3%         18.2%
Non-financial private sector and residents abroad        2,004,342        2,124,636          2,284,196        (5.7%)        (12.3%)
Non-financial private sector and residents abroad - AR$        1,802,048        1,981,295          2,147,693        (9.0%)        (16.1%)
Overdrafts           176,504           173,777             196,014          1.6%        (10.0%)
Discounted instruments           463,503           467,027             364,737        (0.8%)         27.1%
Mortgage loans             79,405             94,963             119,922      (16.4%)        (33.8%)
Pledge loans             44,335             58,933               76,942      (24.8%)        (42.4%)
Consumer loans           151,820           193,351             222,108      (21.5%)        (31.6%)
Credit cards           681,653           736,375             836,964        (7.4%)        (18.6%)
Receivables from financial leases             12,609             16,800               19,599      (24.9%)        (35.7%)
Other loans           192,219           240,069             311,407      (19.9%)        (38.3%)
Non-financial private sector and residents abroad - Foreign Currency           202,294           143,341             136,503        41.1%         48.2%
Overdrafts                    12                    14                        8      (14.3%)         50.0%
Discounted instruments               2,794               3,045                 1,752        (8.2%)         59.5%
Credit cards             21,005             24,372               17,961      (13.8%)         16.9%
Receivables from financial leases                  111                  114                    294        (2.6%)        (62.2%)
Loans for the prefinancing and financing of exports           153,201             99,001               78,079        54.7%         96.2%
Other loans             25,171             16,795               38,409        49.9%        (34.5%)
           
% of total loans to Private sector in AR$ 89.9% 93.3% 94.0%    (335)bps      (412)bps
% of total loans to Private sector in Foreign Currency 10.1% 6.7% 6.0%     335 bps       412 bps
           
% of mortgage loans with UVA adjustments / Total mortgage loans (1) 53.5% 54.2% 56.7%      (70)bps      (323)bps
% of pledge loans with UVA adjustments / Total pledge loans (1) 1.3% 0.9% 2.2%        42 bps        (90)bps
% of consumer loans with UVA adjustments / Total consumer loans (1) 0.1% 0.1% 0.7%        (7)bps        (67)bps
% of loans with UVA adjustments / Total loans and other financing(1) 0.1% 0.1% 0.2%        (0)bps        (14)bps
           
Total loans and other financing        2,020,919        2,133,050          2,298,132        (5.3%)        (12.1%)
Allowances           (45,422)           (59,606)             (65,052)        23.8%         30.2%
Total net loans and other financing        1,975,497        2,073,444          2,233,080        (4.7%)        (11.5%)
           
(1) Excludes effect of accrued interests adjustments.          

 

LOANS AND OTHER FINANCING TO NON-FINANCIAL PRIVATE SECTOR AND RESIDENTS ABROAD IN FOREIGN CURRENCY BBVA ARGENTINA CONSOLIDATED
In millions of USD       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
FX rate*           808.48           350.01           177.13          131.0%          356.4%
Non-financial private sector and residents abroad - Foreign Currency (USD)                250                267                247            (6.2%)              1.5%
*Wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500, as of the end of period.        

Private sector loans as of 4Q23 totaled $2.0 trillion, decreasing 5.7% or $120.3 billion QoQ, and 12.3% or $279.9 billion YoY.

  
 16
 
 

Loans to the private sector in pesos fell 9.0% in 4Q23, and 16.1% YoY. During the quarter, the decrease was especially driven by a general decline in loans, but specially a 7.4% decline in credit cards, followed by a 19.9% fall in other loans (mainly commercial loans PIV6) and a 21.5% fall in consumer loans. The decrease was partially offset by a 1.6% increase in overdrafts, driven by greater activity.

Loans to the private sector denominated in foreign currency increased 41.1% QoQ and 48.2% YoY. Quarterly increase is mainly explained by a 54.7% growth in financing and prefinancing of exports. Loans to the private sector in foreign currency measured in U.S. dollars decreased 6.1% QoQ and increased 1.5% YoY. The depreciation of the argentine peso versus the U.S. dollar was 56.7% QoQ and 78.1% YoY7.

In 4Q23, total loans and other financing totaled $2.0 trillion, declining 5.3% QoQ and 12.1% compared to 4Q22.

LOANS AND OTHER FINANCING BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
Non-financial private sector and residents abroad - Retail         978,218      1,107,994         1,273,897          (11.7%)          (23.2%)
Mortgage loans           79,405           94,963            119,922          (16.4%)          (33.8%)
Pledge loans           44,335           58,933              76,942          (24.8%)          (42.4%)
Consumer loans         151,820         193,351            222,108          (21.5%)          (31.6%)
Credit cards         702,658         760,747            854,925            (7.6%)          (17.8%)
Non-financial private sector and residents abroad - Commercial      1,026,124      1,016,642         1,010,299              0.9%              1.6%
Overdrafts         176,516         173,791            196,022              1.6%          (10.0%)
Discounted instruments         466,297         470,072            366,489            (0.8%)            27.2%
Receivables from financial leases           12,720           16,914              19,893          (24.8%)          (36.1%)
Loans for the prefinancing and financing of exports         153,201           99,001              78,079            54.7%            96.2%
Other loans         217,390         256,864            349,816          (15.4%)          (37.9%)
           
% of total loans to Retail sector 48.8% 52.1% 55.8%        (334)bps        (697)bps
% of total loans to Commercial sector 51.2% 47.9% 44.2%          334 bps          697 bps

In real terms, retail loans (mortgage, pledge, consumer and credit cards) fell 11.7% QoQ and 23.2% YoY in real terms. During the quarter all product lines decline, mainly credit cards by 7.6% and consumer loans by 21.5%.

Commercial loans (overdrafts, discounted instruments, receivables from financial leases, loans for the prefinancing and financing of exports, and other loans) increased 0.9% QoQ and 1.6% YoY, both in real terms. This is justified by quarterly increases in loans for the prefinancing and financing of exports by 54.7% offset by a 15.4% fall in other loans.

As observed in previous quarters, loan portfolios were impacted by the effect of inflation during the fourth quarter of 2023, which reached 53.3%. In nominal terms, BBVA Argentina managed to increase the retail, commercial and total loan portfolio by 35.3%, 54.7% and 45.2% respectively during the quarter, only surpassing quarterly inflation levels in the case of commercial loans.

6 Préstamo a Interés Vencido

7 Taking into consideration wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500.

  
 17
 
 
LOANS AND OTHER FINANCING - NON RESTATED FIGURES BBVA ARGENTINA CONSOLIDATED
In millions of AR$       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
Non-financial private sector and residents abroad - Retail         978,218         722,816         409,079            35.3%          139.1%
Non-financial private sector and residents abroad - Commercial      1,026,124         663,221         324,433            54.7%          216.3%
Total loans and other financing (1)      2,020,919      1,391,526         737,987            45.2%          173.8%
(1) Does not include allowances          

As of 4Q23, the total loans and other financing over deposits ratio was 55.5%, above the 53.6% recorded in 3Q23 and lower than the 56.2% in 4Q22.

MARKET SHARE - PRIVATE SECTOR LOANS BBVA ARGENTINA CONSOLIDATED
In %       ∆ bps
  4Q23 3Q23 4Q22 QoQ YoY
Private sector loans - Bank 9.12% 8.55% 8.15%            57 bps            97 bps
Private sector loans - Consolidated* 9.85% 9.35% 9.10%            50 bps            75 bps
           
Based on daily BCRA information. Capital balance as of the last day of each quarter.
 * Consolidates PSA, VWFS & Rombo

LOANS BY ECONOMIC ACTIVITY BBVA ARGENTINA CONSOLIDATED
% over total gross loans and other financing       ∆ bps
  4Q23 3Q23 4Q22 QoQ YoY
Government services 0.00% 0.00% 0.00%  n.m.   n.m. 
Non-financial public sector 0.01% 0.00% 0.00%  n.m.   n.m. 
Financial Sector 0.81% 0.39% 0.61%            42 bps            21 bps
Agricultural and Livestock 4.91% 4.89% 4.59%              2 bps            32 bps
Mining products 7.34% 4.51% 3.52%          283 bps          382 bps
Other manufacturing 11.62% 11.36% 10.50%            25 bps          111 bps
Electricity, oil,water and sanitary services 0.54% 0.30% 0.14%            24 bps            39 bps
Wholesale and retail trade 8.18% 8.53% 6.97%           (36)bps          121 bps
Transport 1.66% 1.70% 1.61%             (5)bps              5 bps
Services 1.85% 1.61% 1.03%            24 bps            81 bps
Others 15.23% 15.75% 17.42%           (52)bps         (219)bps
Construction 0.64% 0.66% 0.71%             (1)bps             (6)bps
Consumer 47.22% 50.28% 52.89%         (306)bps         (567)bps
Total gross loans and other financing 100% 100% 100%    

  
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Asset Quality

ASSET QUALITY BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
Commercial non-performing portfolio (1)             2,861             2,911             3,955              (1.7%)            (27.7%)
Total commercial portfolio         905,083         853,186         804,265                6.1%              12.5%
Commercial non-performing portfolio / Total commercial portfolio 0.32% 0.34% 0.49%              (3)bps            (18)bps
Retail non-performing portfolio (1)           24,617           29,088           22,901            (15.4%)                7.5%
Total retail portfolio      1,231,363      1,401,190      1,569,348            (12.1%)            (21.5%)
Retail non-performing portfolio / Total retail portfolio 2.00% 2.08% 1.46%              (8)pbs             54 pbs
Total non-performing portfolio (1)           27,478           31,999           26,856            (14.1%)                2.3%
Total portfolio      2,136,446      2,254,376      2,373,613              (5.2%)            (10.0%)
Total non-performing portfolio / Total portfolio 1.29% 1.42% 1.13%            (13)bps             15 bps
Allowances           45,422           59,606           65,052            (23.8%)            (30.2%)
Allowances  /Total non-performing portfolio  165.30% 186.27% 242.23%       (2,097)bps       (7,692)bps
Quarterly change in Write-offs              8,193             7,918             5,590                3.5%              46.6%
Write offs / Total portfolio 0.38% 0.35% 0.24%               3 bps             15 bps
Cost of Risk (CoR) 3.95% 2.14% 4.09%           181 bps            (13)bps
           
(1) Non-performing loans include: all loans to borrowers classified as "Deficient Servicing (Stage 3)", "High Insolvency Risk (Stage 4)", "Irrecoverable" and/or "Irrecoverable for Technical Decision" (Stage 5) according to BCRA debtor classification system

As of 4Q23, asset quality ratio or NPL (total non-performing portfolio / total portfolio) keeps a very good performance at 1.29%, in line with the good behavior of both retail and commercial portfolios. The lower decrease of the total loan portfolio versus that of the non-performing portfolio is explained by a growth in commercial loans, driven by a devaluation of the FX rate, without significantly affecting client’s credit behavior.

Coverage ratio (allowances / total non-performing portfolio) decreased from 186.27% in 3Q23 to 165.30% in 4Q23 due to a lower provision requirement from the retail portfolio.

Cost of risk (loan loss allowances / average total loans) reached 3.95% in 4Q23 compared to 2.14% in 3Q23. The increase is explained by the accounting re-expression of loan loss allowances in the foreign currency portfolios.

ANALYSIS FOR THE ALLOWANCE OF LOAN LOSSES  BBVA ARGENTINA CONSOLIDATED
In millions of AR$             
  Balance at 12/31/2022 Stage 1 Stage 2 Stage 3 Monetary result generated by allowances Balance at 12/31/2022
Other financial assets               1,439                514                   -                   687                 (1,221)                1,419
Loans and other financing             65,051           12,550             4,848           30,025               (67,052)              45,422
Other debt securities                  100                104                   -                      -                       (106)                     98
Eventual commitments               8,390             4,438                241                170                 (7,267)                5,972
Total allowances             74,980           17,606             5,089           30,882               (75,646)              52,911
             
Note: to be consistent with Financial Statements, it must be recorded from the beginning of the year instead of the quarter  

Allowances for the Bank in 4Q23 reflect expected losses driven by the adoption of the IFRS 9 standards as of January 1, 2020, except for debt instruments issued by the nonfinancial government sector which were excluded from the scope of such standard.

  
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Public Sector Exposure

NET PUBLIC DEBT EXPOSURE* BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
Treasury and Government securities         975,996         757,787         616,474            28.8%            58.3%
Treasury and National Government         975,996         757,787         616,474            28.8%            58.3%
   National Treasury Public Debt in AR$         749,507         634,929         604,677            18.0%            24.0%
   National Treasury Public Debt in USD             2,017                  37                    0  n.m   n.m 
   National Treasury Public Debt in AR$ linked to US dollars         224,471         122,821           11,797            82.8%  n.m 
Loans to theNon-financial Public Sector                145                  86                    4            68.6%  n.m 
AR$ Subtotal         749,652         635,015         604,681            18.1%            24.0%
USD Subtotal**         226,488         122,857           11,797            84.4%  n.m 
Total Public Debt Exposure         976,141         757,873         616,478            28.8%            58.3%
B.C.R.A. Exposure      1,332,679      1,674,693      1,675,999          (20.4%)          (20.5%)
Instruments         130,257      1,207,523      1,512,308          (89.2%)          (91.4%)
Leliqs           60,485      1,188,744      1,505,689          (94.9%)          (96.0%)
Notaliqs                   -                      -                      -     N/A   N/A 
Lediv***           69,772           18,778             6,619          271.6%  n.m 
Loans to the B.C.R.A.                   -                      -                     28  N/A         (100.0%)
Repo / Pases       1,202,422         467,170         163,691          157.4%  n.m 
           
 % Public sector exposure (Excl. B.C.R.A.) / Total assets 15.9% 12.7% 10.1%          320 pbs          583 pbs
           
*Deposits at the Central Bank used to comply with reserve requirements not included. Includes assets used as collateral.          
**Includes USD-linked Treasury public debt in AR$
***Securities denominated in foreign currency

4Q23 total public sector exposure (excluding BCRA) totaled $976.1 billion, increasing 28.8% or $218.3 billion QoQ, and 58.3% or $359.7 billion YoY. The quarterly increase is explained by an increment in the position of National Treasury bonds linked to the US dollar and National Treasury debt in pesos.

Short-term liquidity is mostly allocated in REPO, which increased 157.4% QoQ in real terms. This is explained by the total cancellation and cease to issue LELIQ by the Central Bank. Total exposure to the BCRA decreased 20.4% in 4Q23.

Exposure to the public sector (excluding BCRA) represents 15.9% of total assets, above the 12.7% in 3Q23 and above the 10.1% in 4Q22.

  
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Deposits

TOTAL DEPOSITS BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
Total deposits        3,639,307        3,976,103         4,091,312              (8.5%)              (11.0%)
Non-financial Public Sector             34,034             31,975              30,144                6.4%               12.9%
Financial Sector               2,573               1,972                1,059              30.5%             143.0%
Non-financial private sector and residents abroad        3,602,700        3,942,156         4,060,109              (8.6%)              (11.3%)
Non-financial private sector and residents abroad - AR$        2,343,616        3,171,619         3,189,758            (26.1%)              (26.5%)
Checking accounts           913,013        1,170,549            789,091            (22.0%)               15.7%
Savings accounts           592,684           608,991            768,289              (2.7%)              (22.9%)
Time deposits           639,533        1,082,600         1,215,668            (40.9%)              (47.4%)
Investment accounts            182,127           289,600            392,200            (37.1%)              (53.6%)
Other             16,259             19,879              24,510            (18.2%)              (33.7%)
Non-financial private sector and res. abroad - Foreign Currency        1,259,084           770,537            870,351              63.4%               44.7%
Checking accounts                  648                  270                   213            140.0%             204.2%
Savings accounts        1,127,472           680,165            785,742              65.8%               43.5%
Time deposits           120,390             82,457              75,960              46.0%               58.5%
Other             10,574               7,645                8,436              38.3%               25.3%
           
% of total portfolio in the private sector in AR$ 65.1% 80.5% 78.6%       (1,540)bps        (1,351)bps
% of total portfolio in the private sector in Foregin Currency 34.9% 19.5% 21.4%        1,540 bps          1,351 bps
           
% of UVA Time deposits & Investment accounts / Total AR$ Time deposits & Investment accounts 1.3% 1.4% 3.9%              (7)bps           (260)bps

 

DEPOSITS TO THE NON-FINANCIAL PRIVATE SECTOR AND RES. ABROAD IN FOREIGN CURRENCY BBVA ARGENTINA CONSOLIDATED
In millions of USD       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
FX rate*             808.5             350.0             177.1          131.0%          356.4%
Non-financial private sector and residents abroad - Foreign Currency (USD)             1,557             1,438                247              8.3%          531.7%
*Wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500, as of the end of period.

As of 4Q23, total deposits reached $3.6 trillion, decreasing 8.5% or $336.8 billion QoQ, and 11.0% or $452.0 billion YoY.

Private non-financial sector deposits in 4Q23 totaled $3.6 trillion, falling 8.6% QoQ, and 11.3% YoY.

Private non-financial sector deposits in pesos totaled $2.3 trillion, decreasing 26.1% compared to 3Q23, and 26.5% compared to 4Q22. The quarterly change is mainly affected by a 40.9% decline in time deposits, a 37.1% fall in investment accounts, and a 22.0% fall in checking accounts, the latter driven by the Bank’s strategy of reducing interest-bearing checking accounts.

Private non-financial sector deposits in foreign currency expressed in pesos increased 63.4% QoQ and 44.7% YoY. This is mainly explained by seasonal factors. Measured in U.S. dollars, these deposits grew 8.3% QoQ, and a 1.3% fall YoY.

  
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PRIVATE DEPOSITS BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
Non-financial private sector and residents abroad        3,602,700        3,942,156        4,060,109                (8.6%)              (11.3%)
Sight deposits        2,660,650        2,487,499        2,376,281                 7.0%               12.0%
Checking accounts           913,661        1,170,819           789,304              (22.0%)               15.8%
Savings accounts        1,720,156        1,289,156        1,554,031               33.4%               10.7%
Other             26,833             27,524             32,946                (2.5%)              (18.6%)
Time deposits           942,050        1,454,657        1,683,828              (35.2%)              (44.1%)
Time deposits           759,923        1,165,057        1,291,628              (34.8%)              (41.2%)
Investment accounts           182,127           289,600           392,200              (37.1%)              (53.6%)
           
% of sight deposits over total private deposits 74.1% 63.4% 58.8%          1,070 bps          1,527 bps
% of time deposits over total private deposits 25.9% 36.6% 41.2%        (1,070)bps        (1,527)bps

As observed in previous quarters, deposits were impacted by the effect of inflation. In spite of this, in nominal terms, BBVA Argentina managed to increase the sight deposits and total deposits by 64.0% and 38.9% respectively, while time deposits fell 0.7%. The only line surpassing the level of quarterly inflation was sight deposits.

PRIVATE DEPOSITS - NON RESTATED FIGURES BBVA ARGENTINA CONSOLIDATED
In millions of AR$       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
Sight deposits      2,660,650      1,622,755         763,082            64.0%          248.7%
Time deposits         942,050         948,966         540,718            (0.7%)            74.2%
Total deposits      3,602,700      2,593,867      1,313,820            38.9%          174.2%

As of 4Q23, the Bank’s transactional deposits (checking accounts and savings accounts) represented 72.4% of total non-financial private deposits, totaling $2.6 trillion, versus 61.9% in 3Q23.

MARKET SHARE - PRIVATE SECTOR DEPOSITS BBVA ARGENTINA CONSOLIDATED
In %       ∆ bps
  4Q23 3Q23 4Q22 QoQ YoY
Private sector Deposits - Consolidated* 6.79% 7.13% 6.64%           (34)pbs            15 pbs
           
Based on daily BCRA information. Capital balance as of the last day of each quarter.
 * Consolidates PSA, VWFS & Rombo

Other Sources of Funds

OTHER SOURCES OF FUNDS BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
Other sources of funds      1,447,177      1,190,267      1,185,039            21.6%            22.1%
Central Bank                109                131                274          (16.8%)          (60.2%)
Banks and international organizations             2,672             2,981             1,743          (10.4%)            53.3%
Financing received from local financial institutions           25,409           32,884           59,869          (22.7%)          (57.6%)
Corporate bonds           12,817                   -                   595  N/A   n.m 
Equity      1,406,170      1,154,271      1,122,558            21.8%            25.3%

In 4Q23, other sources of funds totaled $1.4 trillion, increasing 21.6% or $256.9 billion QoQ, and 22.1% or $262.1 billion YoY. During 4Q23, installments 5 and 6 of the dividend payment schedule were paid.

  
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The variation in the quarter is mostly explained by the 21.8% increase in equity, due to higher results that accumulate in it, and by an increase in the corporate bonds line (mainly debt taken by the VWFS subsidiary). This was offset by a fall in financing received from local financial institutions taken by consolidated companies.

Liquid Assets

TOTAL LIQUID ASSETS BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
Total liquid assets        3,318,117        3,046,815        3,163,129              8.9%              4.9%
Cash and deposits in banks        1,142,950           733,239           922,672            55.9%            23.9%
Debt securities at fair value through P&L           223,932           163,668             79,471            36.8%          181.8%
Government securities           223,932           163,455             33,958            37.0%  n.m 
Liquidity bills of B. C. R. A.                    -                     213             45,513        (100.0%)        (100.0%)
Net REPO transactions        1,202,422           467,169           163,690          157.4%  n.m 
Other debt securities           748,813        1,682,739        1,997,296          (55.5%)          (62.5%)
Government securities          618,556          475,432          530,509           30.1%           16.6%
Liquidity bills of B. C. R. A.            60,485       1,188,529       1,460,169          (94.9%)          (95.9%)
Internal bills of B.C.R.A.            69,772            18,778              6,618         271.6%  n.m 
           
Liquid assets / Total Deposits 91.2% 76.6% 77.3%       1,455 bps       1,386 bps

In 4Q23, liquid assets were $3.3 trillion, increasing 8.9% or $271.3 billion versus 3Q23, and 4.9% or $155.0 billion compared to 3Q22. This was mainly driven by an increase in REPO transactions (as explained previously due to total cancellation of LELIQs by the BCRA), and an increase in cash and deposits in banks, especially due to the devaluation of the U.S. dollar reserve requirements.

In the quarter, the liquidity ratio (liquid assets / total deposits) reached 91.2%. Liquidity ratio in local and foreign currency reached 82.6% and 106.9% respectively.

  
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Solvency

MINIMUM CAPITAL REQUIREMENT BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
Minimum capital requirement         336,644         314,784         311,898              6.9%              7.9%
Credit risk         222,092         225,026         219,155            (1.3%)              1.3%
Market risk             6,538                889             4,612  n.m             41.8%
Operational risk           90,508           88,869           88,131              1.8%              2.7%
           
Integrated Capital - RPC (1)*      1,281,001      1,045,149         995,353            22.6%            28.7%
Ordinary Capital Level 1 ( COn1)      1,376,618      1,139,155      1,127,943            20.8%            22.0%
Deductible items COn1          (95,617)          (94,006)        (148,475)            (1.7%)            35.6%
Additional Capital Level 2 (COn2)                            -                               -              15,885  N/A   N/A 
           
Excess Capital          
Integration excess         944,357         730,365         683,455            29.3%            38.2%
Excess as  % of minimum capital requirement 280.5% 232.0% 219.1%       4,850 bps       6,139 bps
           
Risk-weighted assets (RWA, according to B.C.R.A. regulation) (2)      3,908,370      3,852,874      3,818,928              1.4%              2.3%
           
Regulatory Capital Ratio (1)/(2) 32.8% 27.1% 26.1%          565 pbs          671 pbs
TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) 32.8% 27.1% 25.6%          565 pbs          713 pbs
           
* RPC includes 100% of quarterly results

BBVA Argentina continues to show strong solvency indicators on 4Q23. Capital ratio reached 32.8%, above 3Q23’s 27.1%. Tier 1 ratio was 32.8% and capital excess over regulatory requirement was $944.4 billion or 280.5%.

Growth in the ratio was mainly driven by an increase in capital mainly due to better OCI results in 4Q23.

It is worth mentioning that since August, the BCRA has issued a clarification where “financial institutions that apply IFRS 9 cannot use what is stated in item 8.2.3.3 on regulation “Minimum capitals for financial institutions (complementary equity calculation including risk loss provisions on portfolios classified as in “normal” situation)”. This is the reason why Additional Capital Level 2 (Con2) is 0, and the capital ratio and tier I ratio have the same value.

  
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BBVA Argentina Asset Management S.A.

MUTUAL FUNDS ASSETS BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
FBA Renta Pesos      1,234,722         1,311,965      1,270,069            (5.9%)            (2.8%)
FBA Renta Fija Plus           20,361              14,040             6,845            45.0%          197.5%
FBA Ahorro Pesos           15,907              13,738             6,835            15.8%          132.7%
FBA Horizonte             3,989                6,585           33,865          (39.4%)          (88.2%)
FBA Calificado             4,873                5,626           21,344          (13.4%)          (77.2%)
FBA Acciones Argentinas             4,313                4,162             3,242              3.6%            33.0%
FBA Acciones Latinoamericanas             1,995                2,960             2,195          (32.6%)            (9.1%)
FBA Bonos Argentina             1,207                1,642             4,528          (26.5%)          (73.3%)
FBA Bonos Globales                558                   782                741          (28.6%)          (24.7%)
FBA Renta Mixta                485                   682             1,202          (28.9%)          (59.7%)
FBA Gestión I                  65                     87                134          (25.3%)          (51.5%)
FBA Horizonte Plus                  16                     40                  87          (60.0%)          (81.6%)
FBA Retorno Total I                  13                     21                  59          (38.1%)          (78.0%)
FBA Renta Publica I                  11                     15                  37          (26.7%)          (70.3%)
FBA Renta Fija Local                    4                       5                    9          (20.0%)          (55.6%)
Total assets      1,288,519         1,362,350      1,351,192            (5.4%)            (4.6%)
           
AMASAU Net Income                296                1,772             2,969          (83.3%)          (90.0%)

MARKET SHARE - MUTUAL FUNDS BBVA ASSET MANAGEMENT
In %       ∆ bps
  4Q23 3Q23 4Q22 QoQ YoY
Mutual funds 4.78% 5.58% 6.23%           (80)bps           (65)bps
           
Source: Cámara Argentina de Fondos Comunes de Inversión

  
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Other Events

Main Relevant Events

·As of November 30, 2023, the Bank was notified of a class action brought by the Argentine Consumer Defense Association ("ADUC"). The Association challenges the collection of the stop-payment fee on checks issued by consumers, and requests not to pay, and refund the money received as fee for the stop-payment to each of the affected clients plus interest and punitive damage. For further information click here.
·As of December 22, 2023, the Bank informed the death of Mr. Gabriel Milstein, member of the Board of Directors. For further information click here.
·As of January 12, 2024, that the Board of Directors decided at its meeting to appoint Mr. Gabriel Alberto Chaufán who was acting as Alternate Director, as Regular Director in replacement of Mr. Gabriel Eugenio Milstein who passed away on December 21, 2023, until the next Annual General Meeting of Shareholders be held, in accordance with Section 10 of the Bylaws. For further information click here.
·As of March 1, 2024, the Board of Directors resolved to renew the possible realization of investment operations to its related part Banco Bilbao Vizcaya Argentaria S.A. The Audit Committee is in favor of such operation, considered generic and comprehensive for all transactions carried out during 2024, which concluded that there were no objections to be raised in this respect and that they could be deemed reasonably adequate to usual and normal market conditions. For further information click here.

SMEs Productive investment financing credit lines – December 2023

The BCRA established a financing line for productive investments of MSMEs (MiPyMEs, as per its Spanish acronym) aimed at financing CAPEX and/or the construction of the facilities needed for the production and/or marketing of goods and/or services, financing working capital and discounting deferred checks and other instruments, and other special eligible facilities allowed by applicable laws.

The facilities should be granted as part of the 2021/2022, 2022, 2022/2023, 2023 and 2023/2024 Quotas, pursuant to the following conditions:

Account 2021/2022 Quota 2022 Quota 2022/2023 Quota 2023 Quota 2023/2024 Quota
Applicable law “B” 12238 “B” 12326 “B” 12413 –    “A” 7612 “B” 12544 –    “A” 7720 "B" 12667 - “A” 7848
Amount to be allocated At least, the equivalent to 7.5% of the monthly average of daily balances of non-financial private sector deposits in pesos of the previous month at the beginning of the period.
Calculations of applications 1.10.2021 - 31.03.2022 1.04.2022 - 30.09.2022 1.10.2022 - 31.03.2023 1.04.2023 - 30.09.2023 1.10.2023 - 31.03.2024
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. Capped at an annual nominal fixed rate of 97% for investment projects, and at an annual nominal fixed rate of 109% 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 December 31, 2023, the total amount disbursed by the Entity meets the BCRA requirement. Disbursements are reported below:

  
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Quota Minimum amount to be allocated (1) Simple Average of Daily balances (1) Disbursed amount (1)
2021/2022 Quota 32,447,048 43,434,402 62,449,414
2022 Quota 42,867,291 63,022,460 98,200,990
2022/2023 Quota 58,558,806 86,880,132 127,355,598
2023 Quota 84,764,223 148,263,325 234,048,314
2023/2024 Quota 135,740,381 (*) (*)

 

 

(*)As of the date of these financial statements, the term reported by Communication “B” 12413 has not expired.

(1) Numbers are expressed in nominal terms.

 

Main Regulatory Changes

Time deposit rate. LELIQ. Credit card rate. (Communication “A” 7862, 10/12/2023). The BCRA increased the 28-day LELIQ monetary policy rate to 133% APR (prev. 118%), increasing by the same magnitude the minimum time deposit rate for deposits of up to $30 million. For the productive investment credit lines for SMEs, rates will be 112% APR (prev. 97%) and 124% APR (prev. 109%) for working capital. Additionally, it increased the credit card financing rate for individuals as of November 2023 to 122% (107% in September).

Changes in monetary policy rate. (Press Release, 12/18/2023). As of 12/19/2023, the monetary policy rate will be the one-day REPO rate, which has been set to 100% APR (prev. 126% APR) as of 12/13/2023. In aims to rationalize its liquidity management, the Board decided to stop issuing LELIQ, turning REPOs into the main instrument of excess monetary base contraction.

Financing to the non-financial public sector. (Communication “A” 7921, 12/18/2023). The BCRA stated that those securities available for sale to the BCRA through put options will not count in the credit limits to the public sector.

Time deposit minimum rate. (Communication “A” 7922, 12/18/2023). The BCRA kept the minimum interest rate on time deposits at 110% APR. Additionally, the Board considered that it would be necessary that the banking system could continue to offer time deposits linked to inflation (UVA). To give predictability to the availability of funds, it decided to put off the minimum rate of pre-cancelling of these deposits.

“Cuota Simple” Program. (Res 7/2024, 01/22/2024). As of February 1, 2024, and until May 31, 2024, the Cuota Simple Program will replace the “Ahora 12” programs, keeping the possibility of financing purchases in 3 and 6 fixed instalments at 93.5% APR.

Minimum reserve requirements. Cuota Simple. (Communication “A” 7951, 01/25/2024). Financing in pesos for the Cuota Simple program is added as a discount for the minimum reserve requirement in pesos.

  
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Glossary

Active clients: holders of at least one active product. An active product is in most cases a product with at least “one movement” in the last 3 months, or a minimum balance.

APR: Annual Percentage Rate

APY: Annual Percentage Yield

Cost of Risk (accumulated): Year to date accumulated loan loss allowances / Average total loans.

Average total loans: average between previous year-end Total loans and other financing and current period Total loans and other financing.

Cost of Risk (quarterly): Current period Loan loss allowances / Average total loans. Average total loans: average between previous quarter-end Total loans and other financing and current period Total loans and other financing.

Coverage ratio: Quarterly allowances under the Expected Credit Loss model / total non-performing portfolio.

Digital clients: we consider a customer to be an active user of online banking when they have been logged at least once within the last three months using the internet or a cell phone and SMS banking.

Efficiency ratio (Excl. inflation adjustments, accumulated): Accumulated (Personnel benefits+ Administrative expenses + Depreciation & Amortization) / Accumulated (Net Interest Income + Net Fee Income + Net Income from measurement of Financial Instruments at Fair Value through P&L + Net income from write-down of assets at amortized cost and at fair value through OCI + Foreign exchange and gold gains + some concepts included in Other net operating income).

Efficiency ratio (Excl. inflation adjustments, quarterly): (Personnel benefits+ Administrative expenses + Depreciation & Amortization) / (Net Interest Income + Net Fee Income + Net Income from measurement of Financial Instruments at Fair Value through P&L + Net income from write-down of assets at amortized cost and at fair value through OCI + Foreign exchange and gold gains + some concepts included in Other net operating income).

Efficiency ratio (accumulated): Accumulated (Personnel benefits+ Administrative expenses + Depreciation & Amortization) / Accumulated (Net Interest Income + Net Fee Income + Net Income from measurement of Financial Instruments at Fair Value through P&L + Net income from write-down of assets at amortized cost and at fair value through OCI + Foreign exchange and gold gains + some concepts included in Other net operating income+ Income from net monetary position).

Efficiency ratio (quarterly): (Personnel benefits+ Administrative expenses + Depreciation & Amortization) / (Net Interest Income + Net Fee Income + Net Income from measurement of Financial Instruments at Fair Value through P&L + Net income from write-down of assets at amortized cost and at fair value through OCI + Foreign exchange and gold gains + some concepts included in Other net operating income+ Income from net monetary position).

Liquidity Ratio: (Cash and deposits in banks + Debt securities at fair value through P&L (Excl. Private securities) + Net REPO transactions + Other debt securities (Excl. Private securities) / Total Deposits.

Mobile clients: customers who have been active in online banking at least once in the last three months using a mobile device.

Net Interest Margin (NIM) – (quarterly): Quarterly Net Interest Income / Average quarterly interest earning assets.

Public Sector Exposure (excl. BCRA): (National and Provincial Government public debt + Loans to the public sector + REPO transactions) / Total Assets.

  
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ROA (accumulated): Accumulated net Income of the period attributable to owners of the parent / Total Average Assets. Total Average Assets is calculated as the average between total assets on December of the previous year and total assets in the current period, expressed in local currency. Calculated over a 365-day year.

ROA (quarterly): Net Income of the period attributable to owners of the parent / Total Average Assets. Total Average Assets is calculated as the average between total assets on the previous quarter-end and total assets in the current period, expressed in local currency. Calculated over a 365-day year.

ROE (accumulated): Accumulated net Income of the period attributable to owners of the parent / Average Equity. Average Equity is calculated as the average between equity in December of the previous year and equity in the current period, expressed in local currency. Calculated over a 365-day year.

ROE (quarterly): Net Income of the period attributable to owners of the parent / Average Equity. Average Equity is calculated as the average between equity on the previous quarter end and equity in the current period, expressed in local currency. Calculated over a 365-day year.

Spread: (Quarterly Interest Income / Quarterly average Interest-earning Assets) – (Quarterly Interest Expenses / Quarterly average interest-bearing liabilities).

 

Other terms

n.m.: not meaningful. Implies an increase above 500% and a decrease below -500%.

N/A: not applicable.

Bps: basis points.

  
 29
 
 

 

Balance Sheet

BALANCE SHEET BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
Assets          
Cash and deposits in banks          1,142,950             733,239             922,672                55.9%                23.9%
Cash        727,271        386,681        365,765           88.1%           98.8%
 Financial institutions and correspondents        415,679        346,286        556,626           20.0%         (25.3%)
BCRA    359,854    318,334    502,637           13.0%         (28.4%)
Other local and foreign financial institutions      55,825      27,952      53,989           99.7%             3.4%
Other             -              272           281       (100.0%)       (100.0%)
Debt securities at fair value through profit or loss             226,083             164,706               79,471                37.3%              184.5%
Derivatives               10,002               19,778                 7,063              (49.4%)                41.6%
Repo transactions          1,202,422             467,169             163,690              157.4%  n.m 
Other financial assets               91,114             133,405             101,964              (31.7%)              (10.6%)
Loans and other financing          1,975,497          2,073,444          2,233,080                (4.7%)              (11.5%)
Non-financial public sector               145                 86                   4           68.6%  n.m 
B.C.R.A                  -                     -                    28  N/A        (100.0%)
Other financial institutions          15,451            6,944          13,178         122.5%           17.2%
Non-financial private sector and residents abroad          1,959,901          2,066,414          2,219,870                (5.2%)              (11.7%)
Other debt securities             757,772          1,691,780          2,008,889              (55.2%)              (62.3%)
Financial assets pledged as collateral             261,635             222,022             143,854                17.8%                81.9%
Current income tax assets                    160                    187                    121              (14.4%)                32.2%
Investments in equity instruments                 5,211                 4,559                 2,922                14.3%                78.3%
Investments in subsidiaries and associates               12,366               11,458               10,798                  7.9%                14.5%
Property and equipment             298,218             294,900             299,275                  1.1%                (0.4%)
Intangible assets               33,137               31,644               29,950                  4.7%                10.6%
Deferred income tax assets                 2,846                 3,482                 4,734              (18.3%)              (39.9%)
Other non-financial assets             104,245               98,043               90,748                  6.3%                14.9%
Non-current assets held for sale                    852                    826                    701                  3.1%                21.5%
Total Assets          6,124,510          5,950,642          6,099,932                  2.9%                  0.4%
Liabilities          
Deposits          3,639,307          3,976,103          4,091,312                (8.5%)              (11.0%)
Non-financial public sector          34,034          31,975          30,144             6.4%           12.9%
Financial sector            2,573            1,972            1,059           30.5%         143.0%
Non-financial private sector and residents abroad     3,602,700     3,942,156     4,060,109           (8.6%)         (11.3%)
Liabilities at fair value through profit or loss               10,330                    133                       -     n.m   N/A 
Derivatives                 2,145                 3,563                 1,041              (39.8%)              106.1%
Other financial liabilities             448,258             322,448             368,805                39.0%                21.5%
Financing received from the B.C.R.A. and other financial institutions               28,190               35,996               61,886              (21.7%)              (54.4%)
Corporate bonds issued               12,817                       -                       595  N/A   n.m 
Current income tax liabilities             192,167               32,982               22,571              482.6%  n.m 
Provisions               20,724               16,397               26,997                26.4%              (23.2%)
Deferred income tax liabilities               23,416               42,238               20,838              (44.6%)                12.4%
Other non-financial liabilities             323,018             348,734             366,503                (7.4%)              (11.9%)
Total Liabilities          4,700,372          4,778,594          4,960,548                (1.6%)                (5.2%)
Equity          
Share Capital                    613                    613                    613                         -                         -
Non-capitalized contributions                 6,745                 6,745                 6,745                         -                         -
Capital adjustments             410,521             410,521             410,521                         -                         -
Reserves             650,153             650,153             544,843                         -                19.3%
Retained earnings                       -                          -                         34  N/A             (100.0%)
Other accumulated comprehensive income             173,596              (29,089)              (23,351)  n.m   n.m 
Income for the period             164,542             115,328             183,153                42.7%              (10.2%)
Equity attributable to owners of the Parent     1,406,170     1,154,271     1,122,558           21.8%           25.3%
Equity attributable to non-controlling interests          17,968          17,777          16,826             1.1%             6.8%
Total Equity          1,424,138          1,172,048          1,139,384                21.5%                25.0%
Total Liabilities and Equity          6,124,510          5,950,642          6,099,932                  2.9%                  0.4%
  
 30
 
 

Balance Sheet – Five quarters

BALANCE SHEET BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted          
  4Q23 3Q23 2Q23 1Q23 4Q22
Assets          
Cash and deposits in banks                1,142,950                   733,239                   877,511                   957,045                   922,672
Cash              727,271              386,681              291,587              307,122              365,765
 Financial institutions and correspondents              415,679              346,286              484,166              649,544              556,626
B.C.R.A         359,854         318,334         465,573         625,480         502,637
Other local and foreign financial institutions           55,825           27,952           18,593           24,064           53,989
Other                   -                   272         101,758                379                281
Debt securities at fair value through profit or loss                   226,083                   164,706                   165,799                     72,437                     79,471
Derivatives                     10,002                     19,778                       6,737                       2,880                       7,063
Repo transactions                1,202,422                   467,169                   363,176                   361,186                   163,690
Other financial assets                     91,114                   133,405                   187,399                     99,403                   101,964
Loans and other financing                1,975,497                2,073,444                2,174,309                2,184,296                2,233,080
Non-financial public sector                     145                       86                         8                         7                         4
B.C.R.A                        -                           -                           -                           -                          28
Other financial institutions                15,451                  6,944                14,634                13,508                13,178
Non-financial private sector and residents abroad           1,959,901           2,066,414           2,159,667           2,170,781           2,219,870
Other debt securities                   757,772                1,691,780                2,100,862                1,785,925                2,008,889
Financial assets pledged as collateral                   261,635                   222,022                   164,350                   135,899                   143,854
Current income tax assets                          160                          187                          166                          196                          121
Investments in equity instruments                       5,211                       4,559                       4,802                       3,107                       2,922
Investments in subsidiaries and associates                     12,366                     11,458                     11,432                     11,735                     10,798
Property and equipment                   298,218                   294,900                   295,003                   297,142                   299,275
Intangible assets                     33,137                     31,644                     30,463                     29,788                     29,950
Deferred income tax assets                       2,846                       3,482                       3,877                       3,935                       4,734
Other non-financial assets                   104,245                     98,043                     88,744                     90,936                     90,748
Non-current assets held for sale                          852                          826                          826                          826                          701
Total Assets                6,124,510                5,950,642                6,475,456                6,036,736                6,099,932
Liabilities          
Deposits                3,639,307                3,976,103                4,153,402                4,021,018                4,091,312
Non-financial public sector                34,034                31,975                22,744                30,796                30,144
Financial sector                  2,573                  1,972                  3,909                  2,633                  1,059
Non-financial private sector and residents abroad           3,602,700           3,942,156           4,126,749           3,987,589           4,060,109
Liabilities at fair value through profit or loss                     10,330                          133                             -                                -                                -   
Derivatives                       2,145                       3,563                          975                       1,332                       1,041
Other financial liabilities                   448,258                   322,448                   575,694                   339,490                   368,805
Financing received from the B.C.R.A. and other financial institutions                     28,190                     35,996                     57,270                     47,213                     61,886
Corporate bonds issued                     12,817                             -                                -                                -                             595
Current income tax liabilities                   192,167                     32,982                     56,711                     40,861                     22,571
Provisions                     20,724                     16,397                     24,230                     25,336                     26,997
Deferred income tax liabilities                     23,416                     42,238                     29,647                     14,507                     20,838
Other non-financial liabilities                   323,018                   348,734                   405,698                   370,821                   366,503
Total Liabilities                4,700,372                4,778,594                5,303,627                4,860,578                4,960,548
Equity          
Share Capital                          613                          613                          613                          613                          613
Non-capitalized contributions                       6,745                       6,745                       6,745                       6,745                       6,745
Capital adjustments                   410,521                   410,521                   410,521                   410,521                   410,521
Reserves                   650,153                   650,153                   650,153                   544,843                   544,843
Retained earnings                             -                                -                                -                      183,187                            34
Other accumulated comprehensive income                   173,596                   (29,089)                   (14,198)                   (24,999)                   (23,351)
Income for the period              164,542              115,328              100,565                38,446              183,153
Equity attributable to owners of the Parent           1,406,170           1,154,271           1,154,399           1,159,356           1,122,558
Equity attributable to non-controlling interests                17,968                17,777                17,430                16,802                16,826
Total Equity                1,424,138                1,172,048                1,171,829                1,176,158                1,139,384
Total Liabilities and Equity                6,124,510                5,950,642                6,475,456                6,036,736                6,099,932


  
 31
 
 

Balance Sheet – Foreign Currency Exposure

FOREIGN CURRENCY EXPOSURE BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
Assets          
Cash and deposits in banks          1,076,720             674,248             773,572                59.7%                39.2%
Debt securities at fair value through profit or loss             225,200             121,898               10,961                84.7%  n.m 
Other financial assets               38,278               25,372               26,342                50.9%                45.3%
Loans and other financing             196,958             126,504             119,997                55.7%                64.1%
Other financial institutions                   4                   3                   3           33.3%           33.3%
  Non-financial private sector and residents abroad        196,952        126,500        119,994           55.7%           64.1%
Other debt securities          74,070          25,693          17,021         188.3%         335.2%
Financial assets pledged as collateral               42,418               13,702               33,542              209.6%                26.5%
Investments in equity instruments                    432                    248                    187                74.2%              131.0%
Total foreign currency assets          1,654,076             987,665             981,622                67.5%                68.5%
Liabilities          
Deposits          1,281,848             795,534             890,639                61.1%                43.9%
  Non-Financial Public Sector          22,134          24,563          20,020            (9.9%)           10.6%
  Financial Sector               632               435               268           45.3%         135.8%
  Non-financial private sector and residents abroad     1,259,082        770,536        870,351           63.4%           44.7%
Other financial liabilities               79,930               44,826               68,185                78.3%                17.2%
Financing received from the  B.C.R.A. and other financial institutions                 3,119                 3,900                 3,457               (20.0%)                 (9.8%)
Other non financial liabilities               61,892               34,288               36,705                80.5%                68.6%
Total foreign currency liabilities          1,426,789             878,548             998,986                62.4%                42.8%
  0 0 0    
Foreign Currency Net Position - AR$             227,287             109,117              (17,364)              108.3%  n.m 
           
Foreign Currency Net Position - USD                    281                    312                     (98)                 (9.8%)              386.8%
*Wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500, as of the end of period.      

  
 32
 
 

 

Income Statement

INCOME STATEMENT BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  4Q23 3Q23 4Q22 QoQ YoY
Interest income         879,638         899,637         628,160            (2.2%)            40.0%
Interest expense        (383,921)        (485,396)        (297,845)            20.9%          (28.9%)
Net interest income         495,717         414,241         330,315            19.7%            50.1%
Fee income           70,749           59,564           61,584            18.8%            14.9%
Fee expenses          (35,152)          (33,566)          (29,925)            (4.7%)          (17.5%)
Net fee income           35,597           25,998           31,659            36.9%            12.4%
Net income from financial instruments at fair value through P&L          (69,688)           12,527           15,564  n.m   n.m 
Net loss from write-down of assets at amortized cost and fair value through OCI           29,523             6,236            (1,817)          373.4%  n.m 
Foreign exchange and gold gains         197,454             3,280             1,147  n.m   n.m 
Other operating income           21,698           16,331           17,051            32.9%            27.3%
Loan loss allowances          (20,696)          (11,831)          (22,882)          (74.9%)              9.6%
Net operating income         689,605         466,782         371,037            47.7%            85.9%
Personnel benefits          (66,717)          (65,020)          (57,075)            (2.6%)          (16.9%)
Administrative expenses          (51,159)          (72,574)          (54,200)            29.5%              5.6%
Depreciation and amortization            (7,545)            (6,700)          (10,432)          (12.6%)            27.7%
Other operating expenses          (86,241)          (66,028)          (57,230)          (30.6%)          (50.7%)
Operating expenses        (211,662)        (210,322)        (178,937)            (0.6%)          (18.3%)
Operating income         477,943         256,460         192,100            86.4%          148.8%
Income from associates and joint ventures                  57                  27                371          111.1%          (84.6%)
Income from net monetary position        (355,500)        (233,109)        (113,786)          (52.5%)        (212.4%)
Income before income tax         122,500           23,378           78,685          424.0%            55.7%
Income tax          (73,883)            (8,225)          (25,436)  n.m         (190.5%)
Income for the period           48,617           15,153           53,249          220.8%            (8.7%)
Owners of the parent           49,214           14,763           53,989          233.4%            (8.8%)
Non-controlling interests               (597)                390               (740)        (253.1%)            19.3%
           
Other comprehensive Income (1)         203,403          (14,934)          (16,821)  n.m   n.m 
Total comprehensive income         252,020                219           36,428  n.m   n.m 
(1) Net of Income Tax.

  
 33
 
 

 

Income Statement – 5 quarters

INCOME STATEMENT BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted          
  4Q23 3Q23 2Q23 1Q23 4Q22
Interest income         879,638         899,637         767,191         637,481         628,160
Interest expense        (383,921)        (485,396)        (383,815)        (301,883)        (297,845)
Net interest income         495,717         414,241         383,376         335,598         330,315
Fee income           70,749           59,564           68,261           56,223           61,584
Fee expenses          (35,152)          (33,566)          (19,877)          (27,247)          (29,925)
Net fee income           35,597           25,998           48,384           28,976           31,659
Net income from financial instruments at fair value through P&L          (69,688)           12,527           15,323           17,850           15,564
Net loss from write-down of assets at amortized cost and fair value through OCI           29,523             6,236             4,734                  98            (1,817)
Foreign exchange and gold gains         197,454             3,280             6,678             2,698             1,147
Other operating income           21,698           16,331           15,170           14,049           17,051
Loan loss allowances          (20,696)          (11,831)          (22,936)          (20,920)          (22,882)
Net operating income         689,605         466,782         450,729         378,349         371,037
Personnel benefits          (66,717)          (65,020)          (59,951)          (56,413)          (57,075)
Administrative expenses          (51,159)          (72,574)          (64,389)          (61,343)          (54,200)
Depreciation and amortization            (7,545)            (6,700)            (7,217)            (7,215)          (10,432)
Other operating expenses          (86,241)          (66,028)          (60,127)          (51,908)          (57,230)
Operating expenses        (211,662)        (210,322)        (191,684)        (176,879)        (178,937)
Operating income         477,943         256,460         259,045         201,470         192,100
Income from associates and joint ventures                  57                  27             1,227               (154)                371
Income from net monetary position        (355,500)        (233,109)        (160,148)        (145,291)        (113,786)
Income before income tax         122,500           23,378         100,124           56,025           78,685
Income tax          (73,883)            (8,225)          (37,376)          (17,604)          (25,436)
Income for the period           48,617           15,153           62,748           38,421           53,249
Owners of the parent           49,214           14,763           62,120           38,445           53,989
Non-controlling interests               (597)                390                628                 (24)               (740)
           
Other comprehensive Income (OCI)(1)         203,403          (14,934)           10,801            (1,648)          (16,821)
Total comprehensive income         252,020                219           73,549           36,773           36,428

  
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Ratios

QUARTERLY ANNUALIZED RATIOS BBVA ARGENTINA CONSOLIDATED
In %       ∆ bps
  4Q23 3Q23 4Q22 QoQ YoY
Profitability          
Efficiency Ratio 46.4% 82.4% 53.0%      (3,602)bps         (665)bps
ROA 3.2% 0.9% 3.6%          229 bps           (35)bps
ROE 15.3% 5.1% 19.4%       1,018 bps         (415)bps
Liquidity          
Liquid assets / Total Deposits 91.2% 76.6% 77.3%       1,455 bps       1,386 bps
Capital          
Regulatory Capital Ratio 32.78% 27.13% 26.06%          565 bps          671 bps
TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) 32.78% 27.13% 25.65%          565 bps          713 bps
Asset Quality          
Total non-performing portfolio / Total portfolio 1.29% 1.42% 1.13%           (13)bps            15 bps
Allowances  /Total non-performing portfolio  165.30% 186.27% 242.23%      (2,097)bps      (7,692)bps
Cost of Risk 3.95% 2.14% 4.09%          181 bps           (13)bps

 

ACCUMULATED ANNUALIZED RATIOS BBVA ARGENTINA CONSOLIDATED
In %        ∆ bps
  4Q23 3Q23 4Q22 QoQ YoY
Profitability          
Efficiency Ratio 58.6% 63.8% 63.9%         (522)bps         (536)bps
ROA 2.7% 2.6% 3.0%            13 bps           (27)bps
ROE 13.0% 13.5% 17.5%           (53)bps         (452)bps
Liquidity          
Liquid assets / Total Deposits 91.2% 76.6% 77.3%       1,455 bps       1,386 bps
Capital          
Regulatory Capital Ratio 32.8% 27.1% 26.1%          565 bps          671 bps
TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) 32.8% 27.1% 25.6%          565 bps          713 bps
Asset Quality          
Total non-performing portfolio / Total portfolio 1.29% 1.42% 1.13%           (13)bps            15 bps
Allowances  /Total non-performing portfolio  165.30% 186.27% 242.23%      (2,097)bps      (7,692)bps
Cost of Risk 3.68% 3.40% 2.73%            28 bps            95 bps
  
 35
 
 

 

About BBVA Argentina

BBVA Argentina (NYSE; BYMA; MAE: BBAR; LATIBEX: XBBAR) is a subsidiary of the BBVA Group, the main shareholder since 1996. In Argentina, it is one of the leading private financial institutions since 1886. Nationwide, BBVA Argentina offers retail and corporate banking to a broad customer base, including: individuals, SME’s, and large-sized companies.

BBVA Argentina’s purpose is to bring the age of opportunities to everyone, based on our customers’ real needs, providing the best solutions, and helping them make the best financial decisions through an easy and convenient experience. The institution relies on solid values: “The customer comes first, We think big and We are one team”. At the same time, its responsible banking model aspires to achieve a more inclusive and sustainable society.

 

Investor Relations Contact

Carmen Morillo Arroyo

Chief Financial Officer

Inés Lanusse

Investor Relations Officer

Belén Fourcade

Investor Relations

 

investorelations-arg@bbva.com

ir.bbva.com.ar

 

  
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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    Banco BBVA Argentina S.A.
Date: March 5, 2024   By: /s/ Carmen Morillo Arroyo
        Name: Carmen Morillo Arroyo
        Title: Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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