FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

 

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

 

 

For the month of August 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 second quarter earnings for fiscal year 2024.
   
   

 

 
 

 

 

 

 
 

 

 

 
 

 

 

 
 

 

 

 
 

 

 

 
 

 

 

 
 
 

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

Buenos Aires, August 21, 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 second quarter (2Q24), ended on June 30, 2024.

As of January 1, 2020, the Bank started to inform its inflation adjusted results pursuant to IAS 29 reporting. To facilitate comparison, figures of comparable quarters of 2023 and 2024 have been updated according to IAS 29 reporting to reflect the accumulated effect of inflation adjustment for each period up to June 30, 2024.

2Q24 Highlights

·BBVA Argentina’s inflation adjusted net income in 2Q24 was $112.9 billion, 178.8% above the $40.5 billion reported on the first quarter of 2024 (1Q24), and 0.1% above than the $112.803 billion reported on the second quarter of 2023 (2Q23). Inflation adjusted accumulated net income for the first 6 months of 2024 was $153.4 billion, 15.7% lower than the accumulated net result of $181.9 billion in the first 6 months of 2023.
·In 2Q24, BBVA Argentina posted an inflation adjusted average return on assets (ROAA) of 4.7% and an inflation adjusted average return on equity (ROAE) of 19.5%. In the first half of 2024, BBVA Argentina posted an inflation adjusted ROAA of 3.0% and an inflation adjusted ROAE of 13.3%.
·Operating income in 2Q24 was $446.7 billion, 40.3% lower than the $748.4 billion recorded in 1Q24 and 4.1% lower than the $465.7 billion recorded in 2Q23. In the first six months of 2024, the accumulated operating income was $1.20 trillion, 44.4% above the $827.9 billion recorded in the same period of 2023.
·In terms of activity, total consolidated financing to the private sector in 2Q24 totaled $3.9 trillion, increasing 23.1% in real terms compared to 1Q24, and contracting 3.5% compared to 2Q23. In the quarter, the variation was driven by and overall growth in all lines, especially in credit cards by 15.3%, in consumer loans by 45.3% and in discounted instruments by 30.1%. BBVA’s consolidated market share of private sector loans reached 10.54% as of 2Q24.
·Total consolidated deposits in 2Q24 totaled $5.8 trillion, increasing 2.6% in real terms during the quarter, and falling 22.2% YoY. Quarterly increase was mainly explained by an increment in time deposits and savings accounts, by 27.7% and 5.9% respectively. The Bank’s consolidated market share of private deposits reached 7.50% as of 2Q24.
·As of 2Q24, the non-performing loan ratio (NPL) reached 1.18%, with a 165.50% coverage ratio.
·The accumulated efficiency ratio in 2Q24 was 59.9%, improving compared to 1Q24’s 65.4%, and above 2Q23’s 56.6%.
·As of 2Q24, BBVA Argentina reached a regulatory capital ratio of 25.3%, entailing a $1.25 trillion or 210.30% excess over minimum regulatory requirement. Tier I ratio was 25.3%.
·Total liquid assets represented 69.5% of the Bank’s total deposits as of 2Q24.
   
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Message from the CFO

“The significant fiscal consolidation, the relative FX rate stability and the sharp contraction in economic activity, have led to a gradual moderation of inflation in recent months. Despite the uncertainty and related risks, it is likely, according to BBVA Research, that ongoing adjustments, eventually complemented by additional measures, could set the bases for an inflation slowdown along the year. On the other hand, although the deterioration of economic activity could be reversed by mid-year, it is expected that, after falling by 1.6% in 2023, GDP will decrease by 4.0% in 2024 (unchanged since the last forecast). A 135% inflation is expected by 2024 year end (with a downward bias), versus 211% in December 2023.

As of June 2024, private credit in pesos for the system grew 176% YoY, while BBVA Argentina increased its private loan portfolio in pesos by 230%1. Neither the System nor the Bank’s YoY loan growth exceeded that of inflation (which reached 272% YoY as of June 2024). Nonetheless, as of April 2024, BBVA Argentina started to have a monthly real term growth, while the System did so as of May. Consolidated market share increased 153 bps from 9.01% in June 2023, to 10.54% in June 2024, sustaining a two-digit figure.

Concerning consolidated private deposits, the system grew 167% while the Bank grew 185%, without beating inflation in the year in both cases. Consolidated market share of deposits for BBVA Argentina was 7.50%, 46 bps higher YoY.

Regarding shareholder remuneration, as of the date of this report, the Bank has ended its payment schedule of dividends in three consecutive installments, in cash or in kind, for ARS 264.2 billion, expressed in December 31, 2023 currency, and that pursuant to BCRA regulation it has been adjusted by inflation as of the day of each payment.

BBVA Argentina net income in 2Q24 grew 178.8% QoQ, levered on the decline of inflation. That being said, operating income in the quarter was affected by a fall in interest rates (connected to the decrease in the monetary policy rate, which declined from 80% to 40% during the second quarter of 2024) and the boosted growth of the private loan portfolio, which grew in real terms for the first time since the fourth quarter of 2022. This dynamic is mainly denoted in the commercial portfolio and its weight in the balance sheet QoQ versus the previous quarter, in line with the Bank’s strategy of giving support to companies, SMEs and entrepreneurs. On the retail side, as of June 15, 2024, the Bank began to offer UVA adjusted mortgage credit lines for the purchase of a first or second house of permanent use. Also, NPL for private loans of BBVA Argentina was 1.18%, below the System’s 1.90% (May 2024, last information available). Concerning liquidity and solvency indicators, the Bank ends the quarter with 69.5% and 25.3% respectively. The decrease in capital is consequent to the increase in activity denoted in the loan portfolio, in addition to the dividend distribution.

On digitalization, our service offering has evolved in such way that by the end of June 2024, mobile monetary transactions increased 60% compared to the same period a year back. In the year, new client acquisition through digital channels over traditional ones was 84%, while in June 2023 it was 81%.

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. In this context, and within the plan of realty sustainable renovation and the aim of improving the experience of employees and clients, BBVA has invested more than ARS 3.5 billion in Argentina in its refurbishing project of 10 branches. Among the sustainability criteria that have been implemented in the different branches, we can find: water consumption reduction, storage and recollection of recyclable products, deploy of solar energy for the generation of electricity and warming of water, as well was the installation of efficient framings and micro perforated fabric façades for daylight control.

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

 

1 Source: BCRA capital balances as of the last day of each period. Siscen information as of June 30, 2024

   
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Safe Harbor Statement

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

Information

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

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

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

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

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

   
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Quarterly Results

INCOME STATEMENT BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Net Interest Income   678,565   934,028   689,204 (27.4%)   (1.5%)
Net Fee Income  58,799  59,881  86,982   (1.8%) (32.4%)
Net income from measurement of financial instruments at fair value through P&L  30,998  33,046  27,546   (6.2%)   12.5%
Net income from write-down of assets at amortized cost and at fair value through OCI  13,669  74,607 8,509 (81.7%)   60.6%
Foreign exchange and gold gains  20,336  12,129  12,005   67.7%   69.4%
Other operating income  28,663  33,653  27,272 (14.8%)  5.1%
Loan loss allowances (41,551) (31,871) (41,229) (30.4%)   (0.8%)
Net operating income   789,479   1,115,473   810,289 (29.2%)   (2.6%)
Personnel benefits  (109,656)  (106,482)  (107,774)   (3.0%)   (1.7%)
Adminsitrative expenses  (117,129)  (122,438)  (115,755)  4.3%   (1.2%)
Depreciation and amortization (17,939) (12,189) (12,975) (47.2%) (38.3%)
Other operating expenses (98,073)  (125,993)  (108,092)   22.2%  9.3%
Operarting expenses  (342,797)  (367,102)  (344,596)  6.6%  0.5%
Operating income   446,682   748,371   465,693 (40.3%)   (4.1%)
Income from associates 2,490   (3,421) 2,203 172.8%   13.0%
Income from net monetary position  (270,818)  (676,103)  (287,901)   59.9%  5.9%
Net income before income tax    178,354  68,847   179,995 159.1%   (0.9%)
Income tax (65,465) (28,356) (67,192)  (130.9%)  2.6%
Net income for the period   112,889  40,491   112,803 178.8%  0.1%
Owners of the parent   111,009  41,234   111,674 169.2%   (0.6%)
Non-controlling interests 1,880   (743) 1,129 353.0%   66.5%
           
Other comprehensive Income (OCI) (1)  (104,757) (81,359)  19,416 (28.8%)  n.m 
Total comprehensive income 8,132 (40,868)   132,219 119.9% (93.8%)
           
(1) Net of Income Tax.          

BBVA Argentina 2Q24 net income was $112.9 billion, increasing 178.8% or $72.4 billion quarter-over-quarter (QoQ) and mildly increasing 0.1% or $86 billion year-over-year (YoY). This implied a quarterly ROAE of 19.5% and a quarterly ROAA of 4.7%.

The 40.3% fall in quarterly operating results are explained by a lower operating income, mainly due to (i) lower interest income, basically due to the decline in the monetary policy rate, (ii) lower results from write-down of assets at amortized cost and at fair value (FC) through Other Comprehensive Income (OCI), in particular due to the contrast generated by the sale of CPI linked bonds (through the exercise of put options) in 1Q24, followed by (iii) higher loan loss allowances, in line with the growth in real terms of the loan portfolio.

Net Income for the period was highly impacted by income from net monetary position. Inflation on 2Q24 was 18.6%2, noticeably lower than 1Q24’s 51.6%. Consequently, the income from net monetary position line recorded a 59.9% lower loss than the previous quarter, having a positive impact in the net income comparison.

 

2 Source: Instituto Nacional de Estadística y Censos (INDEC)

   
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OTHER COMPREHENSIVE INCOME BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Net income for the period   112,889  40,491   112,803 178.8%  0.1%
Other comprehensive income components to be reclassified to income/(loss) for the period      
Profit or losses from financial isntruments at fair value through OCI  (104,553) (81,414)  16,805 (28.4%)  n.m 
Profit or losses from financial instruments at fair value through OCI  (154,624)  (110,429)  33,372 (40.0%)  n.m 
Reclassification adjustment for the period (12,602) (74,148)   (4,594)   83.0%  (174.3%)
Income tax  62,673   103,163 (11,973) (39.2%)  n.m 
Other comprehensive income coponents not to be reclassified to income/(loss) for the period      
Income or loss on equity instruments at fair value through OCI   (204)   55 2,611  (470.9%)  (107.8%)
Resultado por instrumentos de patrimonio a VR con cambios en ORI   (204)   55 2,611  (470.9%)  (107.8%)
Total Other Comprehensive Income/(loss) for the period  (104,757) (81,359)  19,416 (28.8%)  n.m 
Total Comprehensive Income 8,132 (40,868)   132,219 119.9% (93.8%)
Attributable to owners of the Parent 6,548 (39,897)   131,091 116.4% (95.0%)
Attributable to non-controlling interests 1,584   (971) 1,128 263.1%   40.4%

Lastly, Total OCI in 2Q24 reported a $104.8 billion loss, explained by the results from financial instruments at FV through OCI, especially due to the valuation of the CPI linked bond portfolio. Thus, total comprehensive income for the period in 2Q24 was $8.1 billion.

   
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Income Statement – 6 month accumulated

 

INCOME STATEMENT - 6 MONTH ACCUMULATED BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted      
  2024 2023 ∆ %
Interest income   2,486,856   2,525,212   (1.5%)
Interest expense  (874,263)  (1,232,695)   29.1%
Net interest income   1,612,593   1,292,517   24.8%
Fee income   225,732   223,788  0.9%
Fee expenses  (107,052) (84,716) (26.4%)
Net fee income   118,680   139,072 (14.7%)
Net income from financial instruments at fair value through P&L  64,044  59,635  7.4%
Net loss from write-down of assets at amortized cost and fair value through OCI  88,276 8,685  n.m 
Foreign exchange and gold gains  32,465  16,856   92.6%
Other operating income  62,316  52,529   18.6%
Loan loss allowances (73,422) (78,837)  6.9%
Net operating income   1,904,952   1,490,457   27.8%
Personnel benefits  (216,138)  (209,190)   (3.3%)
Administrative expenses  (239,567)  (226,032)   (6.0%)
Depreciation and amortization (30,128) (25,945) (16.1%)
Other operating expenses  (224,066)  (201,409) (11.2%)
Operating expenses  (709,899)  (662,576)   (7.1%)
Operating income   1,195,053   827,881   44.4%
Income from associates and joint ventures   (931) 1,926  (148.3%)
Income from net monetary position  (946,921)  (549,094) (72.5%)
Income before income tax   247,201   280,713 (11.9%)
Income tax (93,821) (98,840)  5.1%
Income for the period   153,380   181,873 (15.7%)
Owners of the parent   152,243   180,789 (15.8%)
Non-controlling interests 1,137 1,084  4.9%
       
Other comprehensive Income (OCI) (1)  (186,116)  16,454  n.m 
Total comprehensive income (32,736)   198,327  (116.5%)
(1) Net of Income Tax.      

In the first 6 months of 2024, BBVA Argentina net income was $153.4 billion, 15.7% lower than the $181.9 billion reported in the same period of 2023. This implied an accumulated annualized ROAE of 13.3% and a ROAA of 3.0% in 2024, compared to an accumulated annualized ROAE of 17.8% and a ROAA of 3.2% in 2023.

The 44.4% increment in real terms of the Bank’s operating income is mainly explained by (i) an increase in net interest income, mostly due to a reduction in interest expenses YoY, following the de-regulation of the time deposit minimum rate by the end of March 2024, and (ii) better net income from write-down of assets at FV through OCI, mainly due to the sale of CPI linked bonds in 1Q24. On the other hand, there is an increase in administrative expenses and other operating expenses, the latter affected by a higher cost produced by the inflation adjustment of dividend payments and an increase in expenses due to turnover tax.

Additional to these factors, the net result is impacted by the income from net monetary position line, in a context of higher inflation (2024 6-month-accumulated inflation was 79.8% while 2023 6-month-accumulated inflation was 50.7%).

   
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OTHER COMPREHENSIVE INCOME BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted      
  2024 2023 ∆ %
Net income for the period   153,380   181,873 (15.7%)
Other comprehensive income components to be reclassified to income/(loss) for the period  
Profit or losses from financial isntruments at fair value through OCI  (185,967)  13,884  n.m 
Profit or losses from financial instruments at fair value through OCI  (265,053)  23,412  n.m 
Reclassification adjustment for the period (86,750) 5,216  n.m 
Income tax   165,836 (14,744)  n.m 
Other comprehensive income coponents not to be reclassified to income/(loss) for the period  
Income or loss on equity instruments at fair value through OCI   (149) 2,570  (105.8%)
Resultado por instrumentos de patrimonio a VR con cambios en ORI   (149) 2,570  (105.8%)
Total Other Comprehensive Income/(loss) for the period  (186,116)  16,454  n.m 
Total Comprehensive Income (32,736)   198,327  (116.5%)
Attributable to owners of the Parent (33,349)   197,242  (116.9%)
Attributable to non-controlling interests 613 1,085 (43.5%)

Total OCI in the first six months of 2024 totaled a $186.1 billion loss, mainly impacted by the loss of financial instruments at FV through OCI, especially the valuation of the CPI-linked bond portfolio. Thus, the total comprehensive income for the first six months of 2024 totaled a $32.7 billion loss.

EARNINGS PER SHARE BBVA ARGENTINA CONSOLIDATED
        ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Financial Statement information          
Net income for the period attributable to owners of the parent (in AR$ millions, inflation adjusted)   111,009  41,234   111,674 169.2%   (0.6%)
Total shares outstanding (1) 613 613 613   -   -
Market information          
Closing price of ordinary share at BYMA (in AR$) 4,188.8 3,068.6 1,020.7   36.5% 310.4%
Closing price of ADS at NYSE (in USD)  9.3  8.5  6.1  9.1%   51.6%
Book value per share (in AR$)  3,441.28  3,467.93  925.42   (0.8%) 271.9%
Price-to-book ratio (BYMA price) (%)  121.72 88.49  110.30   37.6%   10.4%
Earnings per share (in AR$)  181.18 67.30  182.26 169.2%   (0.6%)
Earnings per ADS(2) (in AR$)  543.53  201.89  546.79 169.2%   (0.6%)
           
(1) In thousands of shares.          
(2) Each ADS accounts for 3 ordinary shares          
Book value not adjusted by inflation          


   
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Net Interest Income

NET INTEREST INCOME BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Net Interest Income   678,565   934,028   689,204 (27.4%)   (1.5%)
Interest Income   973,314   1,513,542   1,379,197 (35.7%) (29.4%)
From government securities   139,404  66,641   565,223 109.2% (75.3%)
From private securities 912 1,671 1,658 (45.4%) (45.0%)
Interest from loans and other financing   373,784   487,837   472,860 (23.4%) (21.0%)
Financial Sector 2,731 3,829 2,375 (28.7%)  15.0%
Overdrafts  63,606  82,828  75,162 (23.2%) (15.4%)
Discounted Instruments   102,237   164,616   120,530 (37.9%) (15.2%)
Mortgage loans 4,834 1,221 2,356   295.9%   105.2%
Pledge loans 9,987  11,246  16,386 (11.2%) (39.1%)
Consumer Loans  52,436  47,362  59,161  10.7% (11.4%)
Credit Cards  93,400   108,103   122,587 (13.6%) (23.8%)
Financial leases 2,664 3,241 3,909 (17.8%) (31.8%)
Loans for the prefinancing and financing of exports 2,463 1,516 721  62.5%   241.6%
Other loans  39,426  63,875  69,673 (38.3%) (43.4%)
Premiums on reverse REPO transactions   147,555   542,323   117,576 (72.8%)   25.5%
CER/UVA clause adjustment   310,194   413,789   220,801 (25.0%)   40.5%
Other interest income 1,465 1,281 1,079   14.4%   35.8%
Interest expenses   294,749   579,514   689,993 (49.1%) (57.3%)
Deposits   243,811   515,338   653,190 (52.7%) (62.7%)
Checking accounts*  48,625   236,993   114,194 (79.5%) (57.4%)
Savings accounts 4,774 6,235 3,156 (23.4%)  51.3%
Time deposits   123,056   185,680   418,179 (33.7%) (70.6%)
Investment accounts  67,356  86,430   117,661 (22.1%) (42.8%)
Other liabilities from financial transactions  11,120 4,099 431 171.3%  n.m 
Interfinancial loans received 2,481  10,005  11,401 (75.2%) (78.2%)
Premiums on  REPO transactions   30 - -  N/A   N/A 
CER/UVA clause adjustment  37,303  50,072  24,962 (25.5%)   49.4%
Other interest expense  4 -  9  N/A  (55.6%)
*Includes interest-bearing checking accounts          

Net interest income in 2Q24 was $678.6 billion, falling 27.4% or $255.5 billion QoQ, and 1.5% or $10.6 billion YoY. In 2Q24, interest income in monetary terms, decreased more than interest expenses. The former fall was due to a lower income from loans, REPOs and CPI linked bonds. The latter, is explained by lower expenses on checking accounts, time deposits and investment accounts.

In 2Q24, interest income totaled $973.3 billion, falling 35.7% compared to 1Q24 and 29.4% compared to 2Q23. Quarterly decrease is mainly driven by (i) lower income from loans, and (ii) lower income from REPOs, both explained by a decline in the monetary policy rate from 80% at the beginning of April, to 40% by mid-May and for the rest of the quarter. Also, the decline in quarterly inflation caused the decrease in income from CPI linked bonds.

   
  8
 
 

Income from government securities increased 109.2% compared to 1Q24, and fell 75.3% compared to 2Q23. This is partially due to a swap of the LELIQ portfolio, which was removed from the market by the BCRA at the beginning of 1Q24, to a LECAP (Treasury bills capitalized in pesos) portfolio. This occurs as the Government seeks to transfer BCRA debt onto Treasury debt. 89% of these results correspond to government securities at fair value through OCI (of which 99% are Treasury securities) and 11% correspond to securities at amortized cost (2027 National Treasury Bonds at fixed rate, National Treasury Bonds Private 0.70 Badlar Rate maturing on November 2027, and National Treasury Bonds CER 2025, used for reserve requirement integration).

Interest income from loans and other financing totaled $373.8 billion, decreasing 23.4% QoQ and 21.0% YoY. Quarterly decline is mainly due to a decrease in average rates, in spite of growth in real terms of the loan portfolio. Interest from loans with the sharpest decline were discounted instruments, overdrafts and other loans, the latter affected by loans from the subsidiaries and in floorplanning loans.

Income from CER/UVA adjustments decreased 25.0% QoQ and increased 40.5% YoY. Quarterly decrease is explained by the delay with which the inflation adjustment effects are recorded, and impact on the subsequent financial statements, with a quarterly inflation below the previous quarter. 82% of income from interests from CER/UVA clause adjustments is explained by interests generated by CPI linked bonds.

Interest expenses totaled $294.7 billion, denoting a decrease of 49.1% QoQ and 57.3% YoY. Quarterly decline is described by lower checking accounts (in particular interest-bearing checking accounts), followed by time deposit and investment account expenses, due to lower rates (de-regulation of minimum time deposit rate).

Interests from time deposits (including investment accounts) explain 64.6% of interest expenses, versus 47.0% the previous quarter. Time deposit expenses fell 33.7% QoQ and 70.5% YoY, in spite of the time deposit portfolio growing in detriment of the interest-bearing checking accounts.

   
  9
 
 

 

NIM

As of 2Q24, net interest margin (NIM) was 42.3%, below the 56.1% reported in 1Q24. In 2Q24, NIM in pesos was 47.7% and 2.3% in U.S. dollars.

ASSETS & LIABILITIES PERFORMANCE - TOTAL BBVA ARGENTINA CONSOLIDATED
In millions of AR$. Rates and spreads in annualized %
  2Q24 1Q24 2Q23
  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  6,426,875 973,314 60.7%  6,681,098 1,513,542 90.9%  8,302,390 1,379,197 66.6%
Debt securities  3,185,835 541,939 68.2%  3,660,155 944,624 103.5%  4,398,679 853,516 77.8%
Loans to customers/financial institutions  3,228,942 431,354 53.6%  2,903,895 568,900 78.6%  3,772,234 525,648 55.9%
Loans to the BCRA   205   3 5.9%   142   7 19.8%  11 26 948.1%
Other assets 11,893 18 0.6%  116,906 11 0.0%  131,466   7 0.0%
Total non interest-earning assets  2,611,148  - 0.0%  2,762,541  - 0.0%  2,562,292  - 0.0%
Total Assets  9,038,023 973,314 43.2%  9,443,639 1,513,542 64.3%   10,864,682 1,379,197 50.9%
Total interest-bearing liabilities  4,060,810 294,749 29.1%  4,446,143 579,514 52.3%  5,533,562 689,993 50.0%
Savings accounts  1,707,629  4,774 1.1%  1,780,505  6,236 1.4%  1,908,447  3,154 0.7%
Time deposits and investment accounts  1,687,573 227,716 54.1%  1,305,428 322,181 99.0%  2,851,033 560,805 78.9%
Debt securities issued 10,451  1,549 59.4% 13,308  3,927 118.4%   - 89 -
Other liabilities  655,157   60,710 37.2%  1,346,902 247,170 73.6%  774,082 125,945 65.3%
Total non-interest-bearing liabilities  4,977,213  - 0.0%  4,997,496  - 0.0%  5,331,120  - 0.0%
Total liabilities and equity  9,038,023 294,749 13.1%  9,443,639 579,514 24.6%   10,864,682 689,993 25.5%
                   
NIM - Total     42.3%     56.1%     33.3%
Spread - Total     31.6%     38.6%     16.6%
                   
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 - AR$ BBVA ARGENTINA CONSOLIDATED
In millions of AR$. Rates and spreads in annualized %                
  2Q24 1Q24 2Q23
  Average Balance Interest Earned/Paid Average Real Rate Average Balance Interest Earned/Paid Average Real Rate Average Balance Interest Earned/Paid Average Real Rate
Total interest-earning assets  5,672,079 968,757 68.5%  5,956,420 1,511,119 101.8%  7,894,175 1,377,563 70.0%
Debt securities  2,865,476 541,693 75.8%  3,262,577 944,529 116.1%  4,214,616 853,275 81.2%
Loans to customers/financial institutions  2,796,904 427,052 61.2%  2,585,889 566,583 87.9%  3,548,209 524,262 59.3%
Loans to the BCRA   201   3 6.0%   140   7 20.1% 7 26 1489.8%
Other assets   9,498   9 0.4%  107,814  - 0.0%  131,343  - 0.0%
Total non interest-earning assets  1,298,887  - 0.0%  1,096,963  - 0.0%  1,256,521  - 0.0%
Total Assets  6,970,966 968,757 55.7%  7,053,383 1,511,119 85.9%  9,150,696 1,377,563 60.4%
Total interest-bearing liabilities  2,877,364 294,523 41.1%  3,132,972 579,339 74.2%  4,507,639 689,777 61.4%
Savings accounts  670,812  4,753 2.8%  643,195  6,213 3.9%  1,026,473  3,139 1.2%
Time deposits and Investment accounts  1,548,360 227,659 59.0%  1,131,626 322,113 114.2%  2,726,816 560,749 82.5%
Debt securities issued 10,451  1,549 59.4% 13,308  3,927 118.4%   - 89 -
Other liabilities  647,741   60,562 37.5%  1,344,843 247,086 73.7%  754,350 125,800 66.9%
Total non-interest-bearing liabilities  4,314,207  - 0.0%  4,197,131  - 0.0%  4,801,720  - 0.0%
Total liabilities and equity  7,191,571 294,523 16.4%  7,330,103 579,339 31.7%  9,309,359 689,777 29.7%
                   
NIM - AR$     47.7%     62.7%     34.9%
Spread - AR$     27.4%     27.6%     8.6%
                   
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.
   
  10
 
 
ASSETS & LIABILITIES PERFORMANCE - FOREIGN CURRENCY BBVA ARGENTINA CONSOLIDATED
In millions of AR$. Rates and spreads in annualized %                
  2Q24 1Q24 2Q23
  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   754,796  4,557 2.4%  724,678  2,423 1.3%  408,215  1,634 1.6%
Debt securities   320,359  246 0.3%  397,578 95 0.1%  184,063  241 0.5%
Loans to customers/financial institutions   432,038  4,302 4.0%  318,006  2,317 2.9%  224,025  1,386 2.5%
Loans to the BCRA  4  - 0.0% 2  - 0.0% 4  - 0.0%
Other assets 2,395   9 1.5%   9,092 11 0.5%   123   7 22.8%
Total non interest-earning assets   1,312,261  - 0.0%  1,665,578  - 0.0%  1,305,771  - 0.0%
Total Assets   2,067,057  4,557 0.9%  2,390,256  2,423 0.4%  1,713,986  1,634 0.4%
Total interest-bearing liabilities   1,183,446  226 0.1%  1,313,171  175 0.1%  1,025,923  216 0.1%
Savings accounts   1,036,817 21 0.0%  1,137,310 23 0.0%  881,974 15 0.0%
Time deposits and Investment accounts   139,213 57 0.2%  173,802 68 0.2%  124,217 56 0.2%
Other liabilities 7,416  148 8.0%   2,059 84 16.4% 19,732  145 2.9%
Total non-interest-bearing liabilities   663,006  - 0.0%  800,365  - 0.0%  529,400  - 0.0%
Total liabilities and equity   1,846,452  226 0.0%  2,113,536  175 0.0%  1,555,323  216 0.1%
                   
NIM - Foreign currency     2.3%     1.2%     1.4%
Spread - Foreign currency     2.3%     1.3%     1.5%
                   
Nominal rates are calculated over a 365-day year
Does not include Net income from measurement of financial instruments at fair value through P&L nor Net income from write-down of assets at amortized cost and at fair value through OCI
Interest-bearing checking accounts included in other interest-bearing liabilities. Non interest-bearing accounts are included in non-interest-bearing liabilities.

Net Fee Income

NET FEE INCOME BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Net Fee Income  58,799  59,881  86,982   (1.8%) (32.4%)
Fee Income   117,733   107,999   122,715  9.0%   (4.1%)
Linked to liabilities  30,600  27,418  40,095   11.6% (23.7%)
From credit cards (1)  61,603  55,162  59,355   11.7%  3.8%
Linked to loans  12,734  11,401  11,118   11.7%   14.5%
From insurance 4,053 3,913 4,429  3.6%   (8.5%)
From foreign trade and foreign currency transactions 5,203 6,065 5,269 (14.2%)   (1.3%)
Other fee income 3,378 3,979 2,138 (15.1%)   58.0%
Linked to loan commitments 162   61 311 165.6% (47.9%)
From guarantees granted   87   75   46   16.0%   89.1%
Linked to securities 3,291 3,904 2,092 (15.7%)   57.3%
Fee expenses  58,934  48,118  35,733   22.5%   64.9%
           
 (1) Includes results from Puntos BBVA royalty program pursuant to IFRS 15 regulation.

Net fee income as of 2Q24 totaled $58.8 billion, falling 1.8% or $1.1 billion QoQ and 32.4% or $28.2 billion YoY. The decline is explained by a greater increase in expenses versus fee income, in monetary terms.

In 2Q24, fee income totaled $117.7 billion, increasing 9.0% QoQ and decreasing 4.1% YoY. Improvement in fee income is mostly explained by (i) greater fee income from credit cards, and (ii) greater fee income linked to liabilities, mainly account maintenance and bundles.

On the side of fee expenses, these totaled $58.9 billion, increasing 22.5% QoQ and 64.9% YoY. This is explained by higher expenses due to processing fees and promotions on debit and credit cards.

   
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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       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Net Income from financial instruments at FV through P&L  30,998  33,046  27,546   (6.2%)   12.5%
Income from government securities  31,851  41,386  27,420 (23.0%)   16.2%
Income from private securities 1,003 307 1,768 226.7% (43.3%)
Interest rate swaps 386 -   (220)  N/A  275.5%
Income from foreign currency forward transactions  (2,531)   (8,038)   (1,107)   68.5%  (128.6%)
Income from put option long position  (442)   (724)   (316)   39.0% (39.9%)
Income from corporate bonds 730 113  1  n.m   n.m 
Other  1  2 - (50.0%)  N/A 

In 2Q24, net income from financial instruments at fair value (FV) through P&L was $31.0 billion, decreasing 6.2% or $2.1 billion QoQ and increasing 12.5% or $3.5 billion YoY.

Quarterly results are mainly explained by a decrease in the income from government securities line item, due to the valuation of sovereign bonds at fair value through P&L. This was positively offset by a lower quarterly loss in income from foreign currency forward transactions.

DIFFERENCES IN QUOTED PRICES OF GOLD AND FOREIGN FOREIGN CURRENCY BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Foreign exchange and gold gains/(losses) (1)  20,336  12,129  12,005   67.7%   69.4%
From foreign exchange position 8,726 4,207   (6,177) 107.4% 241.3%
Income from purchase-sale of foreign currency  11,610 7,922  18,182   46.6% (36.1%)
Net income from financial instruments at FV through P&L (2)   (2,531)   (8,038)   (1,107)   68.5%  (128.6%)
Income from foreign currency forward transactions   (2,531)   (8,038)   (1,107)   68.5%  (128.6%)
Total differences in quoted prices of gold & foreign currency (1) + (2)  17,805 4,091  10,898 335.2%   63.4%

In 2Q24, the total differences in quoted prices of gold and foreign currency showed profit for $17.8 billion, increasing 335.2% or $13.7 billion compared to 1Q24.

The quarterly increase in foreign exchange and gold gains is explained by a higher result both in income from foreign exchange position and income from purchase-sale of foreign currency. The former is driven by a greater average position in foreign currency. This is added to the effect of a lower loss from income from foreign currency forward transactions as mentioned previously.

   
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Other Operating Income

OTHER OPERATING INCOME BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Operating Income  28,663  33,653  27,272 (14.8%)  5.1%
Rental of safe deposit boxes (1) 4,498 3,280 3,882   37.1%   15.9%
Adjustments and interest on miscellaneous receivables (1) 9,014  16,277  10,613 (44.6%) (15.1%)
Punitive interest (1) 1,511 1,138 1,170   32.8%   29.1%
Loans recovered 3,076 1,747 2,099   76.1%   46.5%
Fee income from credit and debit cards (1) 2,571 2,289 2,012   12.3%   27.8%
Fee expenses recovery 823 840 1,008   (2.0%) (18.4%)
Rents 1,123 1,335 1,078 (15.9%)  4.2%
Sindicated transaction fees 290 324 351 (10.5%) (17.4%)
Disaffected provisions 1,734 288 661  n.m  162.3%
Other Operating Income(2) 4,023 6,135 4,398 (34.4%)   (8.5%)
(1) Included in the efficiency ratio calculation
(2) Includes some of the concepts used in the efficiency ratio calculation

In 2Q24 other operating income totaled $28.7 billion, falling 14.8% or $5.0 billion QoQ, and increasing 5.1% or $1.4 billion YoY. Quarterly decrease is mostly explained by a 44.6% fall in the Adjustments and interest on miscellaneous receivables line item, especially due to the credit card business guarantee fund, which is valuated in foreign currency, with a lower devaluation of the Argentine peso versus de U.S. dollar compared to the previous quarter. In addition, there was a 34.4% decline in the other operating income line. This was positively offset by greater income from loans recovered, in particular due to a commercial loan which was considered uncollectible.

   
  13
 
 

Operating Expenses

Personnel Benefits and Administrative Expenses

PERSONNEL BENEFITS & ADMINISTRATIVE EXPENSES BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Total Personnel Benefits and Adminsitrative Expenses   226,785   228,920   223,529   (0.9%)  1.5%
Personnel Benefits (1)   109,656   106,482   107,774  3.0%  1.7%
Administrative expenses (1)   117,129   122,438   115,755   (4.3%)  1.2%
Travel expenses 610 781 709 (21.9%) (14.0%)
Outsourced administrative expenses  16,968  15,077  13,830   12.5%   22.7%
Security services 3,204 3,333 2,635   (3.9%)   21.6%
Fees to Bank Directors and Supervisory Committee 130 128 138  1.6%   (5.8%)
Other fees 3,591 3,320 3,818  8.2%   (5.9%)
Insurance 709 843 774 (15.9%)   (8.4%)
Rent  15,076  17,965  17,974 (16.1%) (16.1%)
Stationery and supplies 315 173 150   82.1% 110.0%
Electricity and communications 3,952 3,992 3,593   (1.0%)   10.0%
Advertising 7,502 8,387 6,306 (10.6%)   19.0%
Taxes  28,125  28,526  22,152   (1.4%)   27.0%
Maintenance costs 9,292 9,806 8,672   (5.2%)  7.1%
Armored transportation services 9,847 8,833 9,362   11.5%  5.2%
Software 7,844 8,092  17,495   (3.1%) (55.2%)
Document distribution 3,833 5,770 2,875 (33.6%)   33.3%
Commercial reports 2,030 2,262 1,104 (10.3%)   83.9%
Other administrative expenses 4,101 5,150 4,168 (20.4%)   (1.6%)
Headcount*       - -
BBVA (Bank) 6,009 5,976 5,889   33 120
Subsidiaries (2)   92   92   93 - (1)
Total employees* 6,101 6,068 5,982   33 119
In branches** 2,210 2,245 1,947  (35) 263
At Main office 3,891 3,823 4,035   68   (144)
           
Total branches*** 242 242 243 - (1)
Own 111 111 113 - (2)
Rented 131 131 130 -  1
        -  
Efficiency Ratio          
Efficiency ratio 55.3% 65.4% 52.0%   (1,011)bps 327 bps
Accumulated Efficiency Ratio 59.9% 65.4% 56.6%   (551)bps 328 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

   
  14
 
 

During 2Q24, personnel benefits and administrative expenses totaled $226.8 billion, mildly decreasing 0.9% or $2.1 billion compared to 1Q24, and increasing 1.5% or $3.3 billion compared to 2Q23 in real terms.

Personnel benefits increased 3.0% QoQ, and 1.7% YoY, with wages increasing in line with inflation.

As of 2Q24, administrative expenses fell 4.3% QoQ, and increased 1.2% YoY. This is maily explained by (i) rent, (ii) other administrative expenses and (iii) document distribution. The first two are related to an increase in inflation which was higher than the nominal increase of expenses in software licenses and services contracted and with the Parent company. This is enhanced by the liberation of provisions due to improvement in macroeconomic indicator estimates for the year. Regarding the decrease in document distribution expenses, this is due to the contrast generated by the renovation of card plastics in 1Q24.

The quarterly efficiency ratio as of 2Q24 was 55.3%, improving versus the 65.4% reported in 1Q24, and above the 52.0% reported in 2Q23. The quarterly decrease is explained by a greater increase in the denominator (income considering monetary position results) than the numerator (expenses), especially due to the lower quarterly inflation.

The accumulated efficiency ratio as of 2Q24 was 59.9%, below the 65.4% reported in 1Q24, and above the 56.6% reported in 2Q23. The deterioration in this ratio is due to an increase in expenses, but especially due to the significant increase in the net monetary position results due to high inflation.

Other Operating Expenses

OTHER OPERATING EXPENSES BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Other Operating Expenses  98,073   125,993   108,092 (22.2%)   (9.3%)
Turnover tax  92,540  71,872  84,407   28.8%  9.6%
Initial loss of loans below market rate 2,757 3,667 3,922 (24.8%) (29.7%)
Contribution to the Deposit Guarantee Fund (SEDESA) 2,059 1,950 2,672  5.6% (22.9%)
Interest on liabilities from financial lease 822 877 653   (6.3%)   25.9%
Other allowances (17,490)  40,990 8,019  (142.7%)  (318.1%)
Dividend currency adjutments  10,281 - -  N/A   N/A 
Claims 683 606 1,058   12.7% (35.4%)
Other operating expenses 6,421 6,031 7,361  6.5% (12.8%)

In 2Q24, other operating expenses totaled $98.1 billion, decreasing 22.2% or $27.9 billion QoQ, and 9.3% or $10.0 billion YoY.

Despite a higher expense on turnover tax, due to additional provinces beginning to collect it (mainly Buenos Aires Province, as of January 2024), the cost of this tax has a downward trend driven by (i) lower interest rates in REPOs and loans, and (ii) a lower REPO position given the monetary policy set by the Government which promotes investment in Treasury debt (which does not pay turnover tax).

This improvement is negatively offset by expenses related to the inflation adjustment of dividend installment payments in the months of May, June and July.

   
  15
 
 

 

Income from Associates

This line reflects the results from non-consolidated associate companies. During 2Q24, a profit of $2.5 billion has been reported, mainly due to the Bank’s participation in BBVA Seguros Argentina S.A., Rombo Compañía Financiera S.A., Interbanking S.A. and Play Digital S.A. and Openpay Argentina S.A.

Income Tax

Accumulated income tax during the first six months of 2024 recorded a loss of $93.8 billion, while taxes for the quarter recorded a loss for $65.5 billion. The six month accumulated effective tax rate in 2024 was 38%3.

Accumulated income tax during the first six months of 2023 recorded a loss of only $98.8 billion, implying an effective tax rate of 35%.

 

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

   
  16
 
 

Balance sheet and activity

Loans and Other Financing

LOANS AND OTHER FINANCING BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
To the public sector   1,701  78 14  n.m   n.m 
To the financial sector 22,454 21,141   26,316 6.2%  (14.7%)
Non-financial private sector and residents abroad  3,870,409  3,145,112 4,011,473  23.1% (3.5%)
Non-financial private sector and residents abroad - AR$  3,370,774  2,714,350 3,760,186  24.2%  (10.4%)
Overdrafts  526,646  383,574 309,465  37.3%   70.2%
Discounted instruments  784,065  609,673 780,458  28.6%  0.5%
Mortgage loans  160,875  149,033 194,821 7.9%  (17.4%)
Pledge loans 52,515 50,282 120,440 4.4%  (56.4%)
Consumer loans  344,346  237,066 393,548  45.3%  (12.5%)
Credit cards  1,146,348  1,002,538 1,461,624  14.3%  (21.6%)
Receivables from financial leases 15,393 16,004   33,034  (3.8%)  (53.4%)
Other loans  340,586  266,180 466,796  28.0%  (27.0%)
Non-financial private sector and residents abroad - Foreign Currency  499,635  430,762 251,287  16.0%   98.8%
Overdrafts  11  10 26  10.0%  (57.7%)
Discounted instruments 10,246   1,069  8,226  n.m    24.6%
Credit cards 50,524 35,075   40,037  44.0%   26.2%
Receivables from financial leases  56   111  346   (49.5%)  (83.8%)
Loans for the prefinancing and financing of exports  395,491  347,029 171,124  14.0% 131.1%
Other loans 43,307 47,468   31,528  (8.8%)   37.4%
           
% of total loans to Private sector in AR$ 87.1% 86.3% 93.7% 79 bps   (664)bps
% of total loans to Private sector in Foreign Currency 12.9% 13.7% 6.3%   (79)bps 664 bps
           
% of mortgage loans with UVA adjustments / Total mortgage loans (1) 52.0% 52.3% 55.3%   (25)bps   (329)bps
% of pledge loans with UVA adjustments / Total pledge loans (1) 4.0% 2.1% 1.3%   190 bps  272 bps
% of consumer loans with UVA adjustments / Total consumer loans (1) 0.0% 0.0% 0.2%  (2)bps  (24)bps
% of loans with UVA adjustments / Total loans and other financing(1) 0.1% 0.1% 0.1% 3 bps (0)bps
           
Total loans and other financing  3,894,564  3,166,331 4,037,803  23.0% (3.5%)
Allowances  (79,664)  (70,985)  (128,999)   (12.2%)   38.2%
Total net loans and other financing  3,814,900  3,095,346 3,908,804  23.2% (2.4%)
           
(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       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
FX rate*  911.75  857.42  256.68  6.3% 255.2%
Non-financial private sector and residents abroad - Foreign Currency (USD) 548 583 263   (6.0%) 108.4%
*Wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500, as of the end of period.

 

   
  17
 
 

Private sector loans as of 2Q24 totaled $3.9 trillion, increasing 23.1% or $725.3 billion QoQ, and falling 3.5% or $141.1 billion YoY.

Loans to the private sector in pesos increased 24.2% in 2Q24, and fell 10.4% YoY. During the quarter, growth was especially driven by (i) a 28.6% increase in discounted instruments, followed by (ii) a 14.3% increase in credit cards, (iii) a 37.3% increase in overdrafts and (iv) an increase in consumer loans. In all cases, the increment is boosted by genuine growth in real terms of the portfolio, levered on the lower market interest rates.

Loans to the private sector denominated in foreign currency increased 16.0% QoQ and 98.8% YoY. Quarterly increase is mainly explained by a 14.0% growth in financing and prefinancing of exports, and a 44.0% growth in credit cards. Loans to the private sector in foreign currency measured in U.S. dollars fell 6.0% QoQ and increased 108.4% YoY. The depreciation of the argentine peso versus the U.S. dollar was 6.0% QoQ and 71.8% YoY4.

In 2Q24, total loans and other financing totaled $3.9 trillion, increasing 23.0% QoQ and falling 3.5% compared to 2Q23.

LOANS AND OTHER FINANCING BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Non-financial private sector and residents abroad - Retail  1,754,608  1,473,994   2,210,470   19.0% (20.6%)
Mortgage loans  160,875  149,033   194,821  7.9% (17.4%)
Pledge loans 52,515 50,282   120,440  4.4% (56.4%)
Consumer loans  344,346  237,066   393,548   45.3% (12.5%)
Credit cards  1,196,872  1,037,613   1,501,661   15.3% (20.3%)
Non-financial private sector and residents abroad - Commercial  2,115,801  1,671,118   1,801,003   26.6%   17.5%
Overdrafts  526,657  383,584   309,491   37.3%   70.2%
Discounted instruments  794,311  610,742   788,684   30.1%  0.7%
Receivables from financial leases 15,449 16,115  33,380   (4.1%) (53.7%)
Loans for the prefinancing and financing of exports  395,491  347,029   171,124   14.0% 131.1%
Other loans  383,893  313,648   498,324   22.4% (23.0%)
           
% of total loans to Retail sector 45.3% 46.9% 55.1%  (153)bps  (977)bps
% of total loans to Commercial sector 54.7% 53.1% 44.9% 153 bps 977 bps

In real terms, retail loans (mortgage, pledge, consumer and credit cards) increased 19.0% QoQ and fell 20.6% YoY in real terms. During the quarter, growth is most evident in credit cards by 15.3% and consumer loans by 45.3%.

Commercial loans (overdrafts, discounted instruments, receivables from financial leases, loans for the prefinancing and financing of exports, and other loans) increased 26.6% QoQ and 17.5% YoY, both in real terms. In the quarter, it is noted that discounted instruments increased 30.1%, and overdrafts increased 37.3%.

As observed in previous quarters, loan portfolios were impacted by the effect of inflation during the second quarter of 2024, which reached 18.6%. In nominal terms, BBVA Argentina managed to increase the retail, commercial and total loan portfolio by 41.1%, 50.1% and 45.8% respectively during the quarter, surpassing quarterly inflation levels in all cases.

 

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

   
  18
 
 
LOANS AND OTHER FINANCING - NON RESTATED FIGURES BBVA ARGENTINA CONSOLIDATED
In millions of AR$       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Non-financial private sector and residents abroad - Retail   1,754,608   1,243,179   594,967   41.1% 194.9%
Non-financial private sector and residents abroad - Commercial   2,115,801   1,409,440   484,757   50.1% 336.5%
Total loans and other financing (1)   3,894,564   2,670,515   1,086,811   45.8% 258.3%
(1) Does not include allowances          

As of 2Q24, the total loans and other financing over deposits ratio was 67.0%, above the 55.9% recorded in 1Q24 and the 58.2% in 2Q23.

Total loan participation over total assets is 40%, versus 32% in 1Q24 and 34% in 2Q23.

MARKET SHARE - PRIVATE SECTOR LOANS BBVA ARGENTINA CONSOLIDATED
In %       ∆ bps
  2Q24 1Q24 2Q23 QoQ YoY
Private sector loans - Bank 9.78% 9.45% 8.14%   33 bps 164 bps
Private sector loans - Consolidated* 10.54% 10.10% 9.01%   44 bps 153 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
  2Q24 1Q24 2Q23 QoQ YoY
Government services 0.00% 0.00% 0.00%  n.m.   n.m. 
Non-financial public sector 0.04% 0.00% 0.00%  n.m.   n.m. 
Financial Sector 0.58% 0.67% 0.65% (9)bps (8)bps
Agricultural and Livestock 4.04% 5.02% 5.10%  (98)bps   (105)bps
Mining products 5.21% 5.86% 3.75%  (65)bps 146 bps
Other manufacturing 14.12% 11.13% 9.18% 299 bps 494 bps
Electricity, oil,water and sanitary services 0.57% 1.01% 0.35%  (44)bps   22 bps
Wholesale and retail trade 7.98% 8.77% 6.81%  (79)bps 117 bps
Transport 1.49% 1.20% 1.77%   29 bps  (28)bps
Services 2.04% 2.42% 2.08%  (38)bps (4)bps
Others 18.73% 17.54% 17.04% 119 bps 169 bps
Construction 0.70% 0.54% 0.62%   15 bps  8 bps
Consumer 44.51% 45.83% 52.66%   (133)bps   (815)bps
Total gross loans and other financing 100% 100% 100%    

   
  19
 
 

 

Asset Quality

ASSET QUALITY BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Commercial non-performing portfolio (1) 3,163 3,595 2,445   (12.0%)  29.4%
Total commercial portfolio   1,797,280   1,548,032   1,550,133  16.1%  15.9%
Commercial non-performing portfolio / Total commercial portfolio 0.18% 0.23% 0.16%  (6)bps   2 bps
Retail non-performing portfolio (1)  44,973  37,255  56,610  20.7%   (20.6%)
Total retail portfolio   2,297,275   1,782,700   2,732,561  28.9%   (15.9%)
Retail non-performing portfolio / Total retail portfolio 1.96% 2.09% 2.07%   (13)pbs   (11)pbs
Total non-performing portfolio (1)  48,136  40,850  59,055  17.8%   (18.5%)
Total portfolio   4,094,555   3,330,732   4,282,694  22.9%  (4.4%)
Total non-performing portfolio / Total portfolio 1.18% 1.23% 1.38%  (5)bps   (20)bps
Allowances  79,664  70,985   128,999  12.2%   (38.2%)
Allowances  /Total non-performing portfolio  165.50% 173.77% 218.44% (827)bps (5,294)bps
Quarterly change in Write-offs   11,235  10,982  11,250 2.3%  (0.1%)
Write offs / Total portfolio 0.27% 0.33% 0.26%  (6)bps   1 bps
Cost of Risk (CoR) 4.72% 3.76% 4.09% 96 bps 63 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 2Q24, asset quality ratio or NPL (total non-performing portfolio / total portfolio) keeps a very good performance at 1.18%, in line with the total loan portfolio growth, and the good behavior of both the commercial and retail portfolios.

Coverage ratio (allowances / total non-performing portfolio) reached 165.50% in 2Q24, from 173.77% in 1Q24. The decline is due to a lower need of allowances in the regular commercial portfolio.

Cost of risk (loan loss allowances / average total loans) reached 4.72% in 2Q24 compared to 3.76% in 1Q24. Loan loss allowances increase in line with the loan portfolio, even in real terms, and cost of risk is incremented as a consequence of a lower volume of loans, in average, in the first quarter.

ANALYSIS FOR THE ALLOWANCE OF LOAN LOSSES  BBVA ARGENTINA CONSOLIDATED
In millions of AR$             
  Balance at 12/31/2023 Stage 1 Stage 2 Stage 3 Monetary result generated by allowances Balance at 06/30/2024
Other financial assets   2,551   47 - 129  (1,168) 1,559
Loans and other financing 81,656  11,976 5,015  22,333   (41,316)  79,664
Other debt securities   176 110 - - (98) 188
Eventual commitments 10,737 5,169 1,634 258  (5,611)  12,187
Total allowances 95,120  17,302 6,649  22,720   (48,193)  93,598
             
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 2Q24 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.

   
  20
 
 

Public Sector Exposure

NET PUBLIC DEBT EXPOSURE* BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Treasury and Government securities   2,509,997  1,337,058   1,276,253   87.7%   96.7%
Treasury and National Government   2,509,997  1,337,058   1,276,253   87.7%   96.7%
National Treasury Public Debt in AR$   2,258,443  1,063,002   1,276,234 112.5%   77.0%
National Treasury Public Debt in USD   56 19,379   19 (99.7%) 192.1%
National Treasury Public Debt in AR$ linked to US dollars   251,498  254,677 -   (1.2%)  N/A 
Loans to theNon-financial Public Sector 1,701  78   14  n.m   n.m 
AR$ Subtotal   2,258,443  1,063,002   1,276,234 112.5%   77.0%
USD Subtotal**   251,554  274,056   19   (8.2%)  n.m 
Total Public Debt Exposure   2,509,997  1,337,058   1,276,253   87.7%   96.7%
B.C.R.A. Exposure   329,869  2,464,364   3,543,110 (86.6%) (90.7%)
Instruments  50,995 54,021   2,890,217   (5.6%) (98.2%)
Leliqs   -   -   2,771,968  N/A   (100.0%)
Notaliqs  14,360 19,722   118,249 (27.2%) (87.9%)
Lediv***  36,635 34,298 -  6.8%  N/A 
Repo / Pases    278,874  2,410,344   652,892 (88.4%) (57.3%)
           
 % Public sector exposure (Excl. B.C.R.A.) / Total assets 26.3% 13.9% 11.0% 1,239 pbs 1,534 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

2Q24 total public sector exposure (excluding BCRA) totaled $2.5 trillion, increasing 87.7% or $1.2 trillion QoQ, and 96.7% or $1.2 trillion YoY.

The quarterly increase is explained by the monetary policy promoted by the Government, in the aim of removing all remunerated liabilities of the BCRA, and aiming for that liquidity to migrate to Treasury debt. This is the reason for a 112.5% higher position in National Treasury Debt in pesos, composed mainly by LECAPs, which by quarter end would reflect the monetary policy rate. BBVA Argentina’s total security portfolio is mainly LECAP (78%) and Boncer (18%) as of 2Q24. As of July 2024, the market reference rate will be that of the new instrument created by the Treasury, the LeFis (Letra Fiscal de Liquidez).

As a result, a 86.6% fall in BCRA exposure is evident, with the greatest decline in REPOs by 88.6%, denoting that liquidity has migrated onto Treasury securities. Thus, exposure to the public sector, excluding BCRA, represents 26.3% of total assets, above the 13.9% in 1Q24 and the 11.0% in 2Q23.

   
  21
 
 

 

Deposits

TOTAL DEPOSITS BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Total deposits  5,810,545  5,662,104   7,466,667 2.6%  (22.2%)
Non-financial Public Sector  180,351  191,900  40,887  (6.0%) 341.1%
Financial Sector   1,926   3,680 7,027   (47.7%)  (72.6%)
Non-financial private sector and residents abroad  5,628,268  5,466,524   7,418,753 3.0%  (24.1%)
Non-financial private sector and residents abroad - AR$  4,075,864  3,821,594   6,047,377 6.7%  (32.6%)
Checking accounts*  1,223,144  1,509,591   1,698,460   (19.0%)  (28.0%)
Savings accounts  1,015,845  839,305   1,409,823  21.0%  (27.9%)
Time deposits  1,534,357  1,127,980   2,369,204  36.0%  (35.2%)
Investment accounts   274,051  319,965   529,387   (14.3%)  (48.2%)
Other 28,467 24,753  40,503  15.0%  (29.7%)
Non-financial private sector and res. abroad - Foreign Currency  1,552,404  1,644,930   1,371,376  (5.6%)   13.2%
Checking accounts*   506   319 430  58.6%   17.7%
Savings accounts  1,431,332  1,471,727   1,233,673  (2.7%)   16.0%
Time deposits  110,902  159,989   123,809   (30.7%)  (10.4%)
Other   9,664 12,895  13,464   (25.1%)  (28.2%)
           
% of total portfolio in the private sector in AR$ 72.4% 69.9% 81.5%  251 bps  (910)bps
% of total portfolio in the private sector in Foregin Currency 27.6% 30.1% 18.5% (251)bps 910 bps
           
% of UVA Time deposits & Investment accounts / Total AR$ Time deposits & Investment accounts 0.0% 0.0% 2.4%  (4)bps  (237)bps
           
*Includes interest-bearing checking accounts

 

DEPOSITS TO THE NON-FINANCIAL PRIVATE SECTOR AND RES. ABROAD IN FOREIGN CURRENCY BBVA ARGENTINA CONSOLIDATED
In millions of USD       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
FX rate* 911.8 857.4 256.7  6.3% 255.2%
Non-financial private sector and residents abroad - Foreign Currency (USD) 1703 1811 1,560   (6.0%)  9.1%
*Wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500, as of the end of period.

As of 2Q24, total deposits reached $5.8 trillion, increasing 2.6% or $148.4 billion QoQ, and falling 22.2% or $1.7 trillion YoY.

Private non-financial sector deposits in 2Q24 totaled $5.6 trillion, increasing 3.0% QoQ, and declining 24.1% YoY.

Private non-financial sector deposits in pesos totaled $4.1 trillion, increasing 6.7% compared to 1Q24, and falling 32.6% compared to 2Q23. The quarterly change is mainly affected by a 36.0% increase in time deposits, and 21.0% increase in savings accounts, offset by a 19.0% fall in checking accounts (especially non-interest bearing checking accounts).

Private non-financial sector deposits in foreign currency expressed in pesos fell 5.6% QoQ and increased 13.2% YoY. This is mainly explained by a 2.7% and a 30.7% fall in savings accounts and time deposits respectively.

   
  22
 
 
PRIVATE DEPOSITS BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Non-financial private sector and residents abroad  5,628,268  5,466,524  7,418,753  3.0%  (24.1%)
Sight deposits  3,708,958  3,858,590  4,396,353 (3.9%)  (15.6%)
Checking accounts  1,223,650  1,509,910  1,698,890  (19.0%)  (28.0%)
Savings accounts  2,447,177  2,311,032  2,643,496  5.9% (7.4%)
Other 38,131 37,648 53,967  1.3%  (29.3%)
Time deposits  1,919,310  1,607,934  3,022,400   19.4%  (36.5%)
Time deposits  1,645,259  1,287,969  2,493,013   27.7%  (34.0%)
Investment accounts  274,051  319,965  529,387  (14.3%)  (48.2%)
           
% of sight deposits over total private deposits 67.0% 71.6% 59.5%  (463)pbs 745 pbs
% of time deposits over total private deposits 33.0% 28.4% 40.5% 463 pbs  (745)pbs

As observed in previous quarters, deposits were impacted by the effect of inflation. This being said, in nominal terms, BBVA Argentina managed to increase the sight deposits, time deposits and total deposits by 14.0%, 41.5% and 56.2% respectively, surpassing the quarterly level of inflation in time deposits and total deposits. 

PRIVATE DEPOSITS - NON RESTATED FIGURES BBVA ARGENTINA CONSOLIDATED
In millions of AR$       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Sight deposits   3,708,958   3,254,374   1,183,347   14.0% 213.4%
Time deposits   1,919,310   1,356,147   813,476   41.5% 135.9%
Total deposits   5,628,268   3,602,700   2,009,719   56.2% 180.1%

As of 2Q24, the Bank’s transactional deposits (checking accounts and savings accounts) represented 63.2% of total non-financial private deposits, totaling $3.7 trillion, versus 67.5% in 1Q24.

MARKET SHARE - PRIVATE SECTOR DEPOSITS BBVA ARGENTINA CONSOLIDATED
In %       ∆ bps
  2Q24 1Q24 2Q23 QoQ YoY
Private sector Deposits - Consolidated* 7.50% 7.37% 7.03%   13 pbs   47 pbs
           
Based on daily BCRA information. Capital balance as of the last day of each quarter.
   
  23
 
 

 

Other Sources of Funds

OTHER SOURCES OF FUNDS BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Other sources of funds   2,344,221   2,559,271   2,209,578   (8.4%)  6.1%
Central Bank 141 124 310   13.7% (54.5%)
Banks and international organizations  11,131 1,065 8,151  n.m    36.6%
Financing received from local financial institutions  35,886  24,164  94,495   48.5% (62.0%)
Reverse REPOs and Guaranteed securities   177,505 - -  N/A   N/A 
Corporate bonds  11,052  14,580 - (24.2%)  N/A 
Equity   2,108,506   2,519,338   2,106,622 (16.3%)  0.1%

In 2Q24, other sources of funds totaled $2.1 trillion, decreasing 15.6% or $394.1 billion QoQ, and 2.0% or $44.4 billion YoY.

The variation in the quarter is mostly explained by the 16.6% decrease in equity. This decline is explained by (i) the reclassification of dividends payable to liabilities since the announcement of approved dividend distribution by the Shareholders’ Meeting on April 26, 2024, and later authorized by the Central Bank in May 3, 2024 for its distribution in cash or kind, and (ii) due to a lower valuation of Treasury bonds, which decreases Equity through OCI. This was positively affected by the net profits of the period.

Liquid Assets

TOTAL LIQUID ASSETS BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Total liquid assets  4,036,709  5,205,746  6,281,615   (22.5%)   (35.7%)
Cash and deposits in banks  1,450,661  1,509,283  1,577,523  (3.9%)  (8.0%)
Debt securities at fair value through P&L  251,883  268,836  298,061  (6.3%)   (15.5%)
Government securities  251,883  268,836  209,425  (6.3%)  20.3%
Liquidity bills of B. C. R. A.  -  - 88,636  N/A  (100.0%)
Net REPO transactions  101,369  2,410,342  652,889   (95.8%)   (84.5%)
Other debt securities  2,232,796  1,017,285  3,753,142   119.5%   (40.5%)
Government securities 2,218,436 997,563 951,576  122.4%  133.1%
Liquidity bills of B. C. R. A.  -  - 2,683,317  N/A  (100.0%)
Internal bills of B.C.R.A.   14,360   19,722 118,249   (27.2%)   (87.9%)
           
Liquid assets / Total Deposits 69.5% 91.9% 84.1% (2,247)bps (1,466)bps

In 2Q24, liquid assets were $4.0 trillion, falling 22.5% or $1.2 trillion versus 1Q24, and 35.7% or $2.2 trillion compared to 2Q23. This was mainly driven by a decrease in net REPO transactions by 81.1%, enhanced by the negative effect of guaranteed securities.

In the quarter, the liquidity ratio (liquid assets / total deposits) reached 69.5%. Liquidity ratio in local and foreign currency reached 61.4% and 88.6% respectively. The decline is explained by a lower position in REPOs, as well as a real term growth in total deposits of 2.6%.

   
  24
 
 

Solvency

 

MINIMUM CAPITAL REQUIREMENT BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Minimum capital requirement   593,577  509,609   554,791 16.5%  7.0%
Credit risk   404,516  340,739   391,282 18.7%  3.4%
Market risk 2,147   2,387 3,277   (10.0%) (34.5%)
Operational risk   186,914  166,483   160,233 12.3%   16.7%
           
Integrated Capital - RPC (1)*   1,841,733  2,222,022   1,927,420   (17.1%)   (4.4%)
Ordinary Capital Level 1 ( COn1)   2,055,675  2,456,368   2,081,767   (16.3%)   (1.3%)
Deductible items COn1  (213,942)   (234,346)  (180,581)   8.7% (18.5%)
Additional Capital Level 2 (COn2) -   -  26,234  N/A   (100.0%)
           
Excess Capital          
Integration excess   1,248,156  1,712,413   1,372,628   (27.1%)   (9.1%)
Excess as  % of minimum capital requirement 210.3% 336.0% 247.4%  (12,575)bps   (3,714)bps
           
Risk-weighted assets (RWA, according to B.C.R.A. regulation) (2)   7,272,436  6,246,047   6,792,432 16.4%  7.1%
           
Regulatory Capital Ratio (1)/(2) 25.3% 35.6% 28.4% (1,025)pbs  (305)pbs
TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) 25.3% 35.6% 28.0% (1,025)pbs  (266)pbs
           
* RPC includes 100% of quarterly results

BBVA Argentina continues to show strong solvency indicators on 2Q24. Capital ratio reached 25.3%, below 1Q24’s 35.6%. Capital excess over regulatory requirement was $1.3 trillion or 210.3%.

The fall in the capital ratio is partially explained by the 16.4% increase in Risk Weighted Assets (RWA), and by a fall in ordinary capital of 16.3%. The latter is related to (i) dividend distribution, which implied the classification to liabilities and its consequent payment, followed by (ii) the impact of OCI in Equity. The increase in RWA is linked to the real growth in the loan portfolio, in line with the increase in market risk requirements.

   
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BBVA Argentina Asset Management S.A.
 

MUTUAL FUNDS ASSETS BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
FBA Renta Pesos  1,731,076  1,667,264  2,237,069  3.8% (22.6%)
FBA Renta Fija Plus 76,929 29,926 24,149 157.1% 218.6%
FBA Ahorro Pesos  - 24,399 24,056  (100.0%)  (100.0%)
FBA Horizonte 13,121 10,203 20,575   28.6% (36.2%)
FBA Calificado 40,971 17,783 14,924 130.4% 174.5%
FBA Acciones Argentinas   6,599   6,305   7,598  4.7% (13.1%)
FBA Acciones Latinoamericanas   7,121   3,751   6,424   89.8%   10.8%
FBA Bonos Argentina 14,181   3,180   4,102 345.9% 245.7%
FBA Bonos Globales   4,796   2,370   2,114 102.4% 126.9%
FBA Renta Mixta   5,378   1,281   1,520 319.8% 253.8%
FBA Gestión I  74  83   189 (10.8%) (60.8%)
FBA Horizonte Plus  15  19  93 (21.1%) (83.9%)
FBA Retorno Total I  10  12  52 (16.7%) (80.8%)
FBA Renta Publica I  11  12  33   (8.3%) (66.7%)
FBA Renta Fija Local 4 5  11 (20.0%) (63.6%)
Total assets  1,900,286  1,766,593  2,342,909  7.6% (18.9%)
           
AMASAU Net Income   3,616   1,608   5,100 124.9% (29.1%)

MARKET SHARE - MUTUAL FUNDS BBVA ASSET MANAGEMENT
In %       ∆ bps
  2Q24 1Q24 2Q23 QoQ YoY
Mutual funds 4.60% 4.72% 5.77%  (12)bps   (105)bps
           
Source: Cámara Argentina de Fondos Comunes de Inversión

   
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Other Events

Main Relevant Events

·Installment 2 dividend payment. As of June 4, Installment 2 will be made available and paid for the sum of $48,608,661,500.42, that is, $237.2030389704 per share, paid on 33.44555362% of the share capital that participates: V/N 204,924,278, which did not opt for payment in BOPREAL in the first installment. The payment will be made to its existing shareholders in the Bank's share registry as of June 6, 2024 as of June 11, 2024, of a dividend through the delivery of:

Non-resident shareholders: will receive payment in pesos, unless they express their intention to receive payment of their dividends with National Treasury Bonds in pesos adjusted by CER 4.25% due December 13, 2024, Ticker T5X4 (CV code 9200; ISIN ARARGE320DV0). One day before the payment date, a complementary payment notice will be published informing the market price of the Bonds to be delivered.

Resident shareholders: payment will be made in pesos, unless they express their intention to receive Payment in Kind.

For more information click here.

·Installment 3 dividend payment. As of July 3, 2024, Installment 3 will be made available and paid for the sum of $50.638.718.584,05, that is, $247,1094156255 per share, paid on 33.44555362% of the share capital that participates: V/N 204,924,278, which did not opt for payment in BOPREAL in the first installment. The payment will be made to its existing shareholders in the Bank's share registry as of July 5, 2024 as of July 11, 2024, of a dividend through the delivery of:

Non-resident shareholders: will receive payment in pesos, unless they express their intention to receive payment of their dividends with National Treasury Bonds in pesos adjusted by CER 4.25% due December 13, 2024, Ticker T5X4 (CV code 9200; ISIN ARARGE320DV0. One day before the payment date, a complementary payment notice will be published informing the market price of the Bonds to be delivered.

Resident shareholders: payment to resident shareholders will be made in pesos unless they express their intention to receive Payment in Kind.

For more information click here.

SMEs Productive investment financing credit lines – June 2024

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

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

   
  27
 
 

 

Account 2022/2023 Quota 2023 Quota 2023/2024 Quota  MiPyME Mínimo Quota
Applicable law “B” 12413 – “A” 7612 “B” 12544 – “A” 7720 "B" 12667 - “A” 7848 “A” 7983
Amount to be allocated At least, the equivalent to 7.5% of the monthly average of daily balances of non-financial private sector deposits in pesos of the previous month at the beginning of the period.
Calculations of applications 1.10.2022 - 31.03.2023 1.04.2023 - 30.09.2023 1.10.2023 - 31.03.2024 As of  1.04.2024
Maximum interest rate Capped at an annual nominal fixed rate of 64.50% for investment projects, and at an annual nominal fixed rate of 75.50% for other purposes. Capped at an annual nominal fixed rate of 74.50% for investment projects, and at an annual nominal fixed rate of 86.50% for other purposes. Capped at an annual nominal fixed rate of 97% for investment projects, and at an annual nominal fixed rate of 109% for other purposes. The interest rate that is freely arranged between parts.
Currency Pesos
Minimum term At the time of disbursement, the credit facilities shall have an average term of at least 24 months, but the total term shall not be of less than 36 months. No minimum term will apply to credit facilities aimed at financing working capital and discounting deferred checks and other instruments.

 

As of June 30, 2024, the total amount disbursed by the Entity meets the BCRA requirement. Disbursements are reported below:

 

Quota Minimum amount to be allocated (1) Simple Average of Daily balances (1) Disbursed amount (1)
2021/2022 Quota 32,447,048 43,434,402 62,449,414
2022 Quota 42,867,291 63,022,460 98,200,990
2022/2023 Quota 58,558,806 86,880,132 127,355,598
2023 Quota 84,764,223 148,263,325 234,048,314
2023/2024 Quota 135,740,381 129,484,282 220,930,680
MiPyME Mínimo Quota (*) (*) (*)

 

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

(1) Numbers are expressed in nominal terms.

 

Main Regulatory Changes

Savings deposits, payroll account and specials (Communication “A” 8006, 05.09.2024). Regulations linked to savings accounts for tourists and transactions with securities for non-resident tourists are lifted. The BCRA remarks that until May 13, any pending transactions may be settled.

Minimum reserve requirement (Communication “A” 8026, 05.23.2024). As of May 24, reserve requirement in pesos facilities through granting financing within the “Ahora 12” and “cuota simple” programs, are ended. Financial institutions can continue to discount the requirement for balances prior to May 23. Also, credit card financing rate limits for individuals are also terminated as of June 2024. As of that moment, the interest rate for credit card financing cannot surpass the 25% of that which results from the average interest rate of the prior month that the institution has granted on consumer loans (with no collaterals).savings accounts for tourists and transactions with securities for non-resident tourists are lifted.

Minimum capital requirement for financial institutions (Communication “A” 8028, 05.23.2024). As of June 1, 2024, the BCRA adjusts the minimum requirement for the capital of financial institutions. The new amounts are (i) Banks: ARS 5 billion (ii) Rest of financial institutions: ARS 2.5 billion.

Financial institutions expansion (Communication “A” 8053, 06.27.24). Authorizations by the BCRA needed to migrate or shut down branches are extended until December 31, 2024.

   
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Regulations on non-financial public sector financing. (Communication “A” 8058, 07.04.2024). LECAPs bought in the secondary market as of July 5, will be excluded from credit limits established in Non-financial public sector financing regulation.

Suspension of BCRA exchange. Purchase-sale of Fiscal liquidity bills (LeFi). (Communication “A” 8060, 07.11.2024). As of July 22, any REPO transactions with the BCRA are cancelled. As of that date, financial institutions will be able to buy LeFis from the Central Bank, issued by the Tresury:

oIssued by the National Tresury.
o1 year duration.
oPays monetary policy rate as informed by the BCRA.
oTransferrable and negotiable only between financial institutions and the BCRA.
oThey are settled at their theoretical fair value.
oFinancial institutions inform their daily balance to keep in the BCRA and LeFis are purchased for any surplus.
oThey can be sold totally or partially in t+1 or t+0.
oExcluded from limits on financing of the non-financial public sector.
oNot admitted as a reserve requirement security.

Special accounts for the regularization of assets (tax amnesty) Law 27.743. (Communication “A” 8062, 07.15.2024). Within the frame of the new Tax Amnesty regulations, the BCRA creates and sets regulation for the conditions on the “Special account of Asset Regularization”. It also remarks that this accounts will be considered as sight deposits in terms of minimum reserve requirements.

·They must be opened by tier 1 commercial banks that enabe their customers to transact via ATMs.
·Funds coming from the tax amnsesty must be deposited on these accounts, in pesos or in foreign currency.
·Deposits bust be made in cash or through wire transfers.
·The funds must remain unavailable until September 30, 2024, with exception of specific transactions and up to USD 100.000.
·Funds cannot be withdrawn in cash
·AFIP (tax authority) will require information on the movements on these accounts.
·Institutions will only be able to charge fees for account maintenance
·In terms of reserve requirements, they have the same treatment as sight deposits (45% for pesos and 25% for foreign currency).
   
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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.

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.

   
  30
 
 

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

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

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

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

 

Other terms

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

N/A: not applicable.

Bps: basis points.

   
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Balance Sheet

BALANCE SHEET BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Assets          
Cash and deposits in banks 1,450,661 1,509,283 1,577,523 (3.9%) (8.0%)
Cash  713,253  856,568  524,192   (16.7%)  36.1%
 Financial institutions and correspondents  730,025  652,715  870,398  11.8%   (16.1%)
BCRA 658,515 552,027 836,972  19.3%   (21.3%)
Other local and foreign financial institutions   71,510 100,688   33,426   (29.0%)   113.9%
Other  7,383 - 182,933  N/A    (96.0%)
Debt securities at fair value through profit or loss 252,224 271,058 298,061 (6.9%)  (15.4%)
Derivatives  5,682   14,270   12,112  (60.2%)  (53.1%)
Repo transactions 278,874 2,410,342 652,889  (88.4%)  (57.3%)
Other financial assets 154,311 121,556 336,891 26.9%  (54.2%)
Loans and other financing 3,814,900 3,095,346 3,908,804 23.2% (2.4%)
Non-financial public sector   1,701  78  14  n.m   n.m 
B.C.R.A   -   -   -  N/A   N/A 
Other financial institutions 21,888 20,233 26,307 8.2%   (16.8%)
Non-financial private sector and residents abroad 3,791,311 3,075,035 3,882,483 23.3% (2.3%)
Other debt securities 2,256,516 1,038,194 3,776,768  117.4%  (40.3%)
Financial assets pledged as collateral 462,226 315,588 295,455 46.5% 56.4%
Current income tax assets   45,324  242  298  n.m   n.m 
Investments in equity instruments  9,399  9,209  8,633   2.1%   8.9%
Investments in subsidiaries and associates   18,162   18,810   20,551 (3.4%)  (11.6%)
Property and equipment 554,899 552,104 530,334   0.5%   4.6%
Intangible assets   57,777   60,364   54,763 (4.3%)   5.5%
Deferred income tax assets   25,151   36,099  6,969  (30.3%)  260.9%
Other non-financial assets 153,680 155,207 159,539 (1.0%) (3.7%)
Non-current assets held for sale  1,532  1,532  1,485 -   3.2%
Total Assets 9,541,318 9,609,204  11,641,075 (0.7%)  (18.0%)
Liabilities          
Deposits 5,810,545 5,662,104 7,466,667   2.6%  (22.2%)
Non-financial public sector  180,351  191,900 40,887  (6.0%)   341.1%
Financial sector   1,926   3,680   7,027   (47.7%)   (72.6%)
Non-financial private sector and residents abroad  5,628,268  5,466,524  7,418,753 3.0%   (24.1%)
Liabilities at fair value through profit or loss  195  9,504  -  (97.9%)  N/A 
Derivatives  514  4,740  1,753  (89.2%)  (70.7%)
Reverse REPO transactions 177,505  -  -  N/A   N/A 
Other financial liabilities 889,479 641,090 1,034,938 38.7%  (14.1%)
Financing received from the B.C.R.A. and other financial institutions   47,158   25,353 102,956 86.0%  (54.2%)
Corporate bonds issued   11,052   14,580  -  (24.2%)  N/A 
Current income tax liabilities  4,136 227,392 101,950  (98.2%)  (95.9%)
Provisions   32,340   61,721   43,559  (47.6%)  (25.8%)
Deferred income tax liabilities  -  -   53,297  N/A    (100.0%)
Other non-financial liabilities 459,888 443,382 729,333   3.7%  (36.9%)
Total Liabilities 7,432,812 7,089,866 9,534,453   4.8%  (22.0%)
Equity          
Share Capital  613  613  613 - -
Non-capitalized contributions  6,745  6,745  6,745 - -
Capital adjustments 743,873 743,873 743,873 - -
Reserves 1,045,631 1,168,794 1,168,794  (10.5%)  (10.5%)
Retained earnings  - 295,801  -   (100.0%)  N/A 
Other accumulated comprehensive income 126,487 230,947  (25,525)  (45.2%)  n.m 
Income for the period 152,243   41,233 180,789  269.2%  (15.8%)
Equity attributable to owners of the Parent  2,075,592  2,488,006  2,075,289   (16.6%) 0.0%
Equity attributable to non-controlling interests 32,914 31,332 31,333 5.0% 5.0%
Total Equity 2,108,506 2,519,338 2,106,622  (16.3%)   0.1%
Total Liabilities and Equity 9,541,318 9,609,204  11,641,075 (0.7%)  (18.0%)
   
  32
 
 

Balance Sheet – Five quarters

BALANCE SHEET BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted          
  2Q24 1Q24 4Q23 3Q23 2Q23
Assets          
Cash and deposits in banks 1,450,661 1,509,283 2,054,707 1,318,162 1,577,523
Cash  713,253  856,568  1,307,432  695,146  524,192
 Financial institutions and correspondents  730,025  652,715  747,275  622,527  870,398
B.C.R.A   658,515   552,027   646,918   572,277   836,972
Other local and foreign financial institutions  71,510   100,688   100,357  50,250  33,426
Other 7,383 - - 489   182,933
Debt securities at fair value through profit or loss 252,224 271,058 406,434 296,096 298,061
Derivatives  5,682   14,270   17,981   35,556   12,112
Repo transactions 278,874 2,410,342 2,161,622 839,841 652,889
Other financial assets 154,311 121,556 163,797 239,826 336,891
Loans and other financing 3,814,900 3,095,346 3,551,398 3,727,479 3,908,804
Non-financial public sector   1,701  78   261   154  14
B.C.R.A   -   -   -   -   -
Other financial institutions 21,888 20,233 27,777 12,484 26,307
Non-financial private sector and residents abroad  3,791,311  3,075,035  3,523,360  3,714,841  3,882,483
Other debt securities 2,256,516 1,038,194 1,362,265 3,041,352 3,776,768
Financial assets pledged as collateral 462,226 315,588 470,347 399,134 295,455
Current income tax assets   45,324  242  288  337  298
Investments in equity instruments  9,399  9,209  9,368  8,196  8,633
Investments in subsidiaries and associates   18,162   18,810   22,231   20,599   20,551
Property and equipment 554,899 552,104 536,113 530,148 530,334
Intangible assets   57,777   60,364   59,572   56,887   54,763
Deferred income tax assets   25,151   36,099  5,116  6,260  6,969
Other non-financial assets 153,680 155,207 187,403 176,251 159,539
Non-current assets held for sale  1,532  1,532  1,532  1,485  1,485
Total Assets 9,541,318 9,609,204  11,010,174  10,697,609  11,641,075
Liabilities          
Deposits 5,810,545 5,662,104 6,542,466 7,147,931 7,466,667
Non-financial public sector  180,351  191,900 61,183 57,481 40,887
Financial sector   1,926   3,680   4,626   3,545   7,027
Non-financial private sector and residents abroad  5,628,268  5,466,524  6,476,657  7,086,905  7,418,753
Liabilities at fair value through profit or loss  195  9,504   18,571  239  -
Derivatives  514  4,740  3,857  6,406  1,753
Reverse Repo Transactions 177,505  -  -  -  -
Other financial liabilities 889,479 641,090 805,845 579,673 1,034,938
Financing received from the B.C.R.A. and other financial institutions   47,158   25,353   50,678   64,711 102,956
Corporate bonds issued   11,052   14,580   23,041  -  -
Current income tax liabilities  4,136 227,392 345,463   59,292 101,950
Provisions   32,340   61,721   37,256   29,478   43,559
Deferred income tax liabilities  -  -   42,096   75,933   53,297
Other non-financial liabilities 459,888 443,382 580,696 626,929 729,333
Total Liabilities 7,432,812 7,089,866 8,449,969 8,590,592 9,534,453
Equity          
Share Capital  613  613  613  613  613
Non-capitalized contributions  6,745  6,745  6,745  6,745  6,745
Capital adjustments 743,873 743,873 743,873 743,873 743,873
Reserves 1,045,631 1,168,794 1,168,794 1,168,794 1,168,794
Retained earnings  - 295,801  -  -  -
Other accumulated comprehensive income 126,487 230,947 312,078 (52,294) (25,525)
Income for the period  152,243 41,233  295,801  207,328  180,789
Equity attributable to owners of the Parent  2,075,592  2,488,006  2,527,904  2,075,059  2,075,289
Equity attributable to non-controlling interests 32,914 31,332 32,301 31,958 31,333
Total Equity 2,108,506 2,519,338 2,560,205 2,107,017 2,106,622
Total Liabilities and Equity 9,541,318 9,609,204  11,010,174  10,697,609  11,641,075


   
  33
 
 

Balance Sheet – Foreign Currency Exposure

FOREIGN CURRENCY EXPOSURE BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Assets          
Cash and deposits in banks 1,221,121 1,389,501 1,400,021   (12.1%)   (12.8%)
Debt securities at fair value through profit or loss 251,683 256,657 19  (1.9%)  n.m 
Other financial assets   36,002   43,051   44,026   (16.4%)   (18.2%)
Loans and other financing 492,390 422,537 221,523 16.5%  122.3%
Other financial institutions  28 5  19   460.0%  47.4%
  Non-financial private sector and residents abroad  492,355  422,528  221,497  16.5%   122.3%
Other debt securities 73,639 85,444  133,999 (13.8%) (45.0%)
Financial assets pledged as collateral   37,065   65,453   24,424   (43.4%) 51.8%
Investments in equity instruments  578  638  457  (9.4%) 26.5%
Total foreign currency assets 2,112,478 2,263,281 1,824,469  (6.7%) 15.8%
Liabilities          
Deposits 1,719,433 1,829,239 1,398,449  (6.0%) 23.0%
  Non-Financial Public Sector  166,329  183,449 26,312   (9.3%)  n.m 
  Financial Sector   701   858   762 (18.3%)   (8.0%)
  Non-financial private sector and residents abroad  1,552,403  1,644,931  1,371,376   (5.6%)  13.2%
Other financial liabilities 121,981 144,039 281,161   (15.3%)   (56.6%)
Financing received from the  B.C.R.A. and other financial institutions   11,243  1,409   10,243  n.m    9.8%
Other non financial liabilities   55,718   82,030   51,490   (32.1%)   8.2%
Total foreign currency liabilities 1,908,375 2,056,717 1,741,343  (7.2%)   9.6%
           
Foreign Currency Net Position - AR$ 204,103 206,564   83,126  (1.2%)  145.5%
           
Foreign Currency Net Position - USD  224  241  324  (7.1%)   (30.9%)
*Wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500, as of the end of period.      

   
  34
 
 

 

Income Statement - Quarterly

INCOME STATEMENT BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q24 1Q24 2Q23 QoQ YoY
Interest income   973,314   1,513,542   1,379,197 (35.7%) (29.4%)
Interest expense  (294,749)  (579,514)  (689,993)   49.1%   57.3%
Net interest income   678,565   934,028   689,204 (27.4%)   (1.5%)
Fee income   117,733   107,999   122,715  9.0%   (4.1%)
Fee expenses (58,934) (48,118) (35,733) (22.5%) (64.9%)
Net fee income  58,799  59,881  86,982   (1.8%) (32.4%)
Net income from financial instruments at fair value through P&L  30,998  33,046  27,546   (6.2%)   12.5%
Net loss from write-down of assets at amortized cost and fair value through OCI  13,669  74,607 8,509 (81.7%)   60.6%
Foreign exchange and gold gains  20,336  12,129  12,005   67.7%   69.4%
Other operating income  28,663  33,653  27,272 (14.8%)  5.1%
Loan loss allowances (41,551) (31,871) (41,229) (30.4%)   (0.8%)
Net operating income   789,479   1,115,473   810,289 (29.2%)   (2.6%)
Personnel benefits  (109,656)  (106,482)  (107,774)   (3.0%)   (1.7%)
Administrative expenses  (117,129)  (122,438)  (115,755)  4.3%   (1.2%)
Depreciation and amortization (17,939) (12,189) (12,975) (47.2%) (38.3%)
Other operating expenses (98,073)  (125,993)  (108,092)   22.2%  9.3%
Operating expenses  (342,797)  (367,102)  (344,596)  6.6%  0.5%
Operating income   446,682   748,371   465,693 (40.3%)   (4.1%)
Income from associates and joint ventures 2,490   (3,421) 2,203 172.8%   13.0%
Income from net monetary position  (270,818)  (676,103)  (287,901)   59.9%  5.9%
Income before income tax   178,354  68,847   179,995 159.1%   (0.9%)
Income tax (65,465) (28,356) (67,192)  (130.9%)  2.6%
Income for the period   112,889  40,491   112,803 178.8%  0.1%
Owners of the parent   111,009  41,234   111,674 169.2%   (0.6%)
Non-controlling interests 1,880   (743) 1,129 353.0%   66.5%
           
Other comprehensive Income (1)  (104,757) (81,359)  19,416 (28.8%)  n.m 
Total comprehensive income 8,132 (40,868)   132,219 119.9% (93.8%)
(1) Net of Income Tax.

 

   
  35
 
 

 

Income Statement – 5 Quarters

INCOME STATEMENT BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted          
  2Q24 1Q24 4Q23 3Q23 2Q23
Interest income   973,314   1,513,542   1,581,345   1,617,298   1,379,197
Interest expense  (294,749)  (579,514)  (690,183)  (872,609)  (689,993)
Net interest income   678,565   934,028   891,162   744,689   689,204
Fee income   117,733   107,999   127,187   107,080   122,715
Fee expenses (58,934) (48,118) (63,192) (60,343) (35,733)
Net fee income  58,799  59,881  63,995  46,737  86,982
Net income from financial instruments at fair value through P&L  30,998  33,046  (125,279)  22,519  27,546
Net loss from write-down of assets at amortized cost and fair value through OCI  13,669  74,607  53,075  11,211 8,509
Foreign exchange and gold gains  20,336  12,129   354,966 5,898  12,005
Other operating income  28,663  33,653  39,007  29,358  27,272
Loan loss allowances (41,551) (31,871) (37,207) (21,269) (41,229)
Net operating income   789,479   1,115,473   1,239,719   839,143   810,289
Personnel benefits  (109,656)  (106,482)  (119,941)  (116,887)  (107,774)
Administrative expenses  (117,129)  (122,438) (91,969)  (130,468)  (115,755)
Depreciation and amortization (17,939) (12,189) (13,564) (12,045) (12,975)
Other operating expenses (98,073)  (125,993)  (155,038)  (118,699)  (108,092)
Operating expenses  (342,797)  (367,102)  (380,512)  (378,099)  (344,596)
Operating income   446,682   748,371   859,207   461,044   465,693
Income from associates and joint ventures 2,490   (3,421) 103   49 2,203
Income from net monetary position  (270,818)  (676,103)  (639,090)  (419,066)  (287,901)
Income before income tax   178,354  68,847   220,220  42,027   179,995
Income tax (65,465) (28,356)  (132,820) (14,786) (67,192)
Income for the period   112,889  40,491  87,400  27,241   112,803
Owners of the parent   111,009  41,234  88,473  26,539   111,674
Non-controlling interests 1,880   (743)   (1,073) 702 1,129
           
Other comprehensive Income (OCI)(1)  (104,757) (81,359)   365,662 (26,846)  19,416
Total comprehensive income 8,132 (40,868)   453,062 395   132,219
(1) Net of Income Tax.          
   
  36
 
 

 

Ratios

QUARTERLY ANNUALIZED RATIOS BBVA ARGENTINA CONSOLIDATED
In %       ∆ bps
  2Q24 1Q24 2Q23 QoQ YoY
Profitability          
Efficiency Ratio 55.3% 65.4% 52.0%   (1,011)bps 327 bps
ROA 4.7% 1.6% 4.0% 305 bps   67 bps
ROE 19.5% 6.6% 21.5% 1,292 bps   (202)bps
Liquidity          
Liquid assets / Total Deposits 69.5% 91.9% 84.1%   (2,247)bps   (1,466)bps
Capital          
Regulatory Capital Ratio 25.32% 35.57% 28.38%   (1,025)bps   (305)bps
TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) 25.32% 35.57% 27.99%   (1,025)bps   (266)bps
Asset Quality          
Total non-performing portfolio / Total portfolio 1.18% 1.23% 1.38% (5)bps  (20)bps
Allowances  /Total non-performing portfolio  165.50% 173.77% 218.44%   (827)bps   (5,294)bps
Cost of Risk 4.72% 3.76% 4.09%   96 bps   63 bps

ACCUMULATED ANNUALIZED RATIOS BBVA ARGENTINA CONSOLIDATED
In %        ∆ bps
  2Q24 1Q24 2Q23 QoQ YoY
Profitability          
Efficiency Ratio 59.9% 65.4% 56.6%   (551)bps 328 bps
ROA 3.0% 1.6% 3.2% 137 bps  (25)bps
ROE 13.3% 6.6% 17.8% 667 bps   (455)bps
Liquidity          
Liquid assets / Total Deposits 69.5% 91.9% 84.1%   (2,247)bps   (1,466)bps
Capital          
Regulatory Capital Ratio 25.3% 35.6% 28.4%   (1,025)bps   (305)bps
TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) 25.3% 35.6% 28.0%   (1,025)bps   (266)bps
Asset Quality          
Total non-performing portfolio / Total portfolio 1.18% 1.23% 1.38% (5)bps  (20)bps
Allowances  /Total non-performing portfolio  165.50% 173.77% 218.44%   (827)bps   (5,294)bps
Cost of Risk 4.17% 3.76% 3.93%   41 bps   24 bps
   
  37
 
 

 

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

 

 

   
  38
 
 

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: August 21, 2024   By: /s/ Carmen Morillo Arroyo
        Name: Carmen Morillo Arroyo
        Title: Chief Financial Officer

 

 

 

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