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 November 2023
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:
Indicate by check mark if the registrant is submitting
the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting
the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether by furnishing the information
contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934:
If “Yes” is marked, indicate below the
file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
Banco BBVA Argentina S.A.
TABLE OF CONTENTS
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| 1. |
Banco BBVA Argentina S.A. reports consolidated third quarter earnings for fiscal year 2023. |
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Banco BBVA Argentina
S.A. announces Third Quarter 2023 results
Buenos
Aires, November 21, 2023 – 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 third quarter (3Q23), ended on September 30, 2023.
As of January 1, 2020, the Bank
started to inform its inflation adjusted results pursuant to IAS 29 reporting. To facilitate comparison, figures of comparable quarters
of 2022 and 2023 have been updated according to IAS 29 reporting to reflect the accumulated effect of inflation adjustment for each period
up to September 30, 2023.
3Q23 Highlights
| · | BBVA Argentina’s
inflation adjusted net income in 3Q23 was $9.9 billion, 75.9% lower than the $41.0 billion reported on the second quarter of 2023 (2Q23),
and 57.1% lower than the $23.0 billion reported on the third quarter of 2022 (3Q22). BBVA Argentina’s inflation adjusted net income
for the first nine months of 2023 (9M23) totaled $75.9 billion, 8.5% lower than the $83.0 billion reported in the first nine months of
2022 (9M22). |
| · | In 3Q23, BBVA Argentina posted an inflation
adjusted average return on assets (ROAA) of 0.9% and an inflation adjusted average return on equity (ROAE) of 5.1%. In the first nine
months of 2023, BBVA Argentina posted an inflation adjusted ROAA of 2.6% and an inflation adjusted ROAE of 13.5%. |
| · | Operating income in 3Q23 was $167.3 billion,
1.0% below the $169.0 billion recorded in 2Q23 and 45.0% over the $115.4 billion recorded in 3Q22. In the first nine months of 2023, operating
income was $467.7 billion, 59.7% above the $292.8 billion recorded in the same period of 2022. |
| · | In terms of activity,
total consolidated financing to the private sector in 3Q23 totaled $1.4 trillion, falling 4.8% in real terms compared to 2Q23, and contracting
0.1% compared to 3Q22. In the quarter, the variation was mainly driven by a decline in credit cards by 8.9%, in consumer loans
by 11.7% and in other loans by 7.3%. This was offset by an increase in discounted instruments by 7.1%. BBVA’s consolidated
market share of private sector loans reached 9.35% as of 3Q23. |
| · | Total consolidated deposits
in 3Q23 totaled $2.6 trillion, decreasing 4.3% in real terms during the quarter, and increasing 2.3% YoY. Quarterly decrease was mainly
explained by a fall in savings accounts and in time deposits, by 12.3% and 16.0% respectively. The Bank’s consolidated market share
of private deposits reached 7.13% as of 3Q23. |
| · | As of 3Q23, the non-performing
loan ratio (NPL) reached 1.42%, with a 186.28% coverage ratio. |
| · | The accumulated efficiency ratio in 3Q23
was 63.8%, above 2Q23’s 56.6%, and improving compared to 3Q22’s 69.0%. |
| · | As of 3Q23, BBVA Argentina reached a
regulatory capital ratio of 27.1%, entailing a $476.5 billion or 232.0% excess over minimum regulatory requirement. Tier I ratio was 27.1%. |
| · | Total liquid assets represented
76.6% of the Bank’s total deposits as of 3Q23. |
Message from the CFO
“The Argentine Republic has ended its presidential
election process, which started on August 13, with the PASO elections, continued with the general elections on October 22, and ended with
a second round or ballottage on November 19, where Javier Milei from La Libertad Avanza party was elected president, changing the current
ruling party. The presidential inauguration ceremony will take place on December 10.
The unfavorable macroeconomic conditions have
continued to deteriorate, increasing the risk of economic and financial turbulence in the high uncertainty context of the electoral scenario.
BBVA Research expects GDP to fall by around 3.0% this year, 50 basis points less than previously forecast, mainly due to better unexpected
activity data. For the first months of 2024, strong corrections and increase in inflation is expected. In this context, GDP could contract
4.0% in 2024, 150 bps more than what was previously expected.
In September 2023, private credit in pesos
for the system grew 112% YoY, while BBVA Argentina increased its private loan portfolio in pesos by 134%[1]. Neither
the System, nor Bank’s YoY loan growth exceeded that of inflation (which reached 138.3% YoY as of September 2023). Consolidated
market share increased 88 bps from 8.47% to 9.35% YoY. Regarding consolidated private deposits, the system grew 125% while the Bank grew
141%, beating inflation in the year in the case of the Bank. Consolidated market share of deposits for BBVA Argentina was 7.13%, higher
than the 6.68% recorded the prior year.
Referring to BBVA Argentina performance in
the first nine months of 2023, a better operating income was the product of an improvement in interest income, due to an increase in the
position and yield of Central Bank instruments and inflation linked bonds. At the same time, the effect of interest rates over loans,
mainly leveraged on commercial loans, serves the operating income growth.
As of September 2023, BBVA Argentina reached
an NPL ratio of 1.42%, way below the last available system NPL (August 2023) of 3.1%. Concerning liquidity and solvency indicators, the
Bank ends the quarter with 76.6% and 27.1% respectively, levels which undoubtedly allow to address business growth in the case of an economic
recovery.
As of the date of this report, BBVA Argentina
has distributed the total of the 6 installments scheduled on dividend payments, from $50.4 billion total to be paid, according to the
plan published on June 7, 2023, on the terms agreed with the Central Bank.
On digitalization, our service offering has
evolved in such way that by the end of September 2023, mobile monetary transactions increased 123% compared to the same period a year
back. In the quarter, new client acquisition through digital channels over traditional ones was 76%, while in 3Q22 it was 72%.
On September 13, BBVA Argentina launched Spark,
a business unit focused on offering financial services to start-ups and entrepreneurs with a technological base in the country. This was
previously launched in Mexico and Spain, and it already serves more than 700 clients globally, with a credit portfolio of over 200 million
euros.
BBVA Argentina has a corporate responsibility
with society, inherent to the Bank’s business model, which bolsters inclusion, financial education and supports scientific research
and culture. The Bank works with the highest integrity, long-term vision and best practices, and is present through the BBVA Group in
the main sustainability indexes.
Lastly, the Bank actively monitors its business,
financial conditions and operating results, in the aim of keeping a competitive position to face contextual challenges in a decisive year
for the Argentine Republic.”
Carmen Morillo Arroyo,
CFO at BBVA Argentina
3Q23 Conference Call
Wednesday, November 22 - 12:00 p.m. Buenos Aires
time (10:00 a.m. EST)
To participate please dial-in:
+ 54-11-3984-5677 (Argentina)
+ 1-844-450-3851 (United States)
+ 1-412-317-6373 (International)
Web
Phone: click here
Código
de la conferencia: BBVA
Webcast
& Replay: click here
1 Source: BCRA capital balances as of the last day of each
period. Siscen information as of September 30, 2023.
Safe Harbor Statement
This press release
contains certain forward-looking statements that reflect the current views and/or expectations of Banco BBVA Argentina and its management
with respect to its performance, business and future events. We use words such as “believe,” “anticipate,” “plan,”
“expect,” “intend,” “target,” “estimate,” “project,” “predict,”
“forecast,” “guideline,” “seek,” “future,” “should” and other similar expressions
to identify forward-looking statements, but they are not the only way we identify such statements. Such statements are subject to a number
of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially
from the plans, objectives, expectations, estimates and intentions expressed in this release. Actual results, performance or events may
differ materially from those in such statements due to, without limitation, (i) changes in general economic, financial, business, political,
legal, social or other conditions in Argentina or elsewhere in Latin America or changes in either developed or emerging markets, (ii)
changes in regional, national and international business and economic conditions, including inflation, (iii) changes in interest rates
and the cost of deposits, which may, among other things, affect margins, (iv) unanticipated increases in financing or other costs or the
inability to obtain additional debt or equity financing on attractive terms, which may limit our ability to fund existing operations and
to finance new activities, (v) changes in government regulation, including tax and banking regulations, (vi) changes in the policies of
Argentine authorities, (vii) adverse legal or regulatory disputes or proceedings, (viii) competition in banking and financial services,
(ix) changes in the financial condition, creditworthiness or solvency of the customers, debtors or counterparties of Banco BBVA Argentina,
(x) increase in the allowances for loan losses, (xi) technological changes or an inability to implement new technologies, (xii) changes
in consumer spending and saving habits, (xiii) the ability to implement our business strategy and (xiv) fluctuations in the exchange rate
of the Peso. The matters discussed herein may also be affected by risks and uncertainties described from time to time in Banco BBVA Argentina’s
filings with the U.S. Securities and Exchange Commission (SEC) and Comisión Nacional de Valores (CNV). Readers are cautioned not
to place undue reliance on forward-looking statements, which speak only as the date of this document. Banco BBVA Argentina is under no
obligation and expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.
Information
This earnings release has been prepared in accordance
with the accounting framework established by the Central Bank of Argentina (“BCRA”), based on International Financial Reporting
Standards (“I.F.R.S.”) and the resolutions adopted by the International Accounting Standards Board (“I.A.S.B”)
and by the Federación Argentina de Consejos Profesionales de Ciencias Económicas (“F.A.C.P.E.”), with the following
exceptions:
a) The exclusion of the application of the IFRS
9 impairment model for non-financial public sector debt instruments.
b) In March 2022, the shares corresponding to
the remaining participation in Prisma Medios de Pago S.A. (“Prisma”) were transferred, which were measured at fair value pursuant
to April 29, 2019, and March 22, 2021 Memorandums received from the BCRA, and the income (loss) from their sale was recorded in the quarter
ended March 31, 2022. Had IFRS rules been applied to determine the fair value mentioned, results for the quarter ended on September 30,
2022 would have been modified. Nonetheless, this does not generate differences regarding the value of equity as of December 31, 2022.
The information in this press release contains
unaudited financial information that consolidates, line item by line item, all of the banking activities of BBVA Argentina, including:
BBVA Asset Management Argentina S.A., Consolidar AFJP-undergoing liquidation proceeding, PSA Finance Argentina Compañía
Financiera S.A. (“PSA”) and Volkswagen Financial Services Compañía Financiera S.A (“VWFS”).
BBVA Seguros Argentina S.A. is disclosed on a
consolidated basis recorded as Investments in associates (reported under the proportional consolidation method), and the corresponding
results are reported as “Income from associates”), same as Rombo Compañía Financiera S.A. (“Rombo”),
Play Digital S.A. (“MODO”), Openpay Argentina S.A. and Interbanking S.A.
Financial statements of subsidiaries have been
elaborated as of the same dates and periods as Banco BBVA Argentina S.A.’s. In the case of consolidated companies PSA and VWFS,
financial statements were prepared considering the B.C.R.A. accounting framework for institutions belonging to “Group C”,
considering the model established by the IFRS 9 5.5. “Impairment” section for periods starting as of January 1, 2022, excluding
debt instruments from the non-financial public sector.
The information published by the BBVA Group for
Argentina is prepared according to IFRS, without considering the temporary exceptions established by BCRA.
Quarterly Results
| INCOME STATEMENT |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Net Interest Income |
270,235 |
250,101 |
182,491 |
8.1% |
48.1% |
| Net Fee Income |
17,623 |
32,004 |
21,730 |
(44.9%) |
(18.9%) |
| Net income from measurement of financial instruments at fair value through P&L |
8,171 |
9,996 |
8,940 |
(18.3%) |
(8.6%) |
| Net income from write-down of assets at amortized cost and at fair value through OCI |
4,068 |
3,088 |
243 |
31.7% |
n.m |
| Foreign exchange and gold gains |
2,140 |
4,357 |
5,300 |
(50.9%) |
(59.6%) |
| Other operating income |
9,991 |
9,457 |
10,722 |
5.6% |
(6.8%) |
| Loan loss allowances |
(7,718) |
(14,962) |
(9,774) |
48.4% |
21.0% |
| Net operating income |
304,510 |
294,041 |
219,652 |
3.6% |
38.6% |
| Personnel benefits |
(42,416) |
(39,110) |
(33,026) |
(8.5%) |
(28.4%) |
| Adminsitrative expenses |
(47,345) |
(42,005) |
(34,999) |
(12.7%) |
(35.3%) |
| Depreciation and amortization |
(4,370) |
(4,709) |
(4,909) |
7.2% |
11.0% |
| Other operating expenses |
(43,074) |
(39,225) |
(31,334) |
(9.8%) |
(37.5%) |
| Operarting expenses |
(137,205) |
(125,049) |
(104,268) |
(9.7%) |
(31.6%) |
| Operating income |
167,305 |
168,992 |
115,384 |
(1.0%) |
45.0% |
| Income from associates |
18 |
799 |
(912) |
(97.7%) |
102.0% |
| Income from net monetary position |
(152,072) |
(104,474) |
(84,309) |
(45.6%) |
(80.4%) |
| Net income before income tax |
15,251 |
65,317 |
30,163 |
(76.7%) |
(49.4%) |
| Income tax |
(5,366) |
(24,383) |
(7,137) |
78.0% |
24.8% |
| Net income for the period |
9,885 |
40,934 |
23,026 |
(75.9%) |
(57.1%) |
| Owners of the parent |
9,631 |
40,525 |
23,444 |
(76.2%) |
(58.9%) |
| Non-controlling interests |
254 |
409 |
(418) |
(37.9%) |
160.8% |
| |
|
|
|
|
|
| Other comprehensive Income (OCI) (1) |
(9,742) |
7,046 |
16,514 |
(238.3%) |
(159.0%) |
| Total comprehensive income |
143 |
47,980 |
39,540 |
(99.7%) |
(99.6%) |
BBVA Argentina 3Q23 net income was $9.9 billion,
decreasing 75.9% or $31.0 billion quarter-over-quarter (QoQ) and 57.1% or $13.1 billion year-over-year (YoY). This implied a quarterly
ROAE of 5.1% and a quarterly ROAA of 0.9%.
Quarterly operating results are mainly explained
by (i) better interest income results through public securities and liquidity instruments, and (ii) an improvement in loan loss allowances.
These were negatively offset by (i) lower net fee income and (ii) higher administrative expenses.
It is worth noting a higher income from write-down
of assets at amortized cost and at fair value through Other Comprehensive Income (OCI) of $4.0 billion, mainly due to the sale of corporate
bonds.
In the quarter, there is a positive effect in
the income tax line, considering the final judgments dictated by the Supreme Court of Justice concerning fiscal years 2014 and 2013, rejecting
the extraordinary appeal and the claim presented by the tax authorities, and affirming the prior favorable final judgments. Applying the
accounting information framework established by the BCRA, the Bank has recorded a positive result of $7.4 billion as of September 30,
2023.
Net Income for the period was highly impacted
by income from net monetary position, as inflation increased from 23.8% in 2Q23 to 34.8%[2]
in 3Q23.
Lastly, the OCI line totaled a negative result
of $9.7 billion million, mainly due to results of financial instruments at fair value through OCI, particularly through the revaluation
of inflation-linked (CER) National Treasury bond portfolio.
Income Statement – 9 month accumulated
| INCOME STATEMENT - 9 MONTH ACCUMULATED |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
| |
2023 |
2022 |
∆ % |
| Interest income |
1,503,249 |
868,735 |
73.0% |
| Interest expense |
(763,981) |
(394,649) |
(93.6%) |
| Net interest income |
739,268 |
474,086 |
55.9% |
| Fee income |
121,170 |
125,350 |
(3.3%) |
| Fee expenses |
(52,640) |
(51,045) |
(3.1%) |
| Net fee income |
68,530 |
74,305 |
(7.8%) |
| Net income from financial instruments at fair value through P&L |
29,812 |
26,773 |
11.4% |
| Net loss from write-down of assets at amortized cost and fair value through OCI |
7,220 |
1,774 |
307.0% |
| Foreign exchange and gold gains |
8,257 |
15,660 |
(47.3%) |
| Other operating income |
28,613 |
31,868 |
(10.2%) |
| Loan loss allowances |
(36,327) |
(24,647) |
(47.4%) |
| Net operating income |
845,373 |
599,819 |
40.9% |
| Personnel benefits |
(118,328) |
(100,863) |
(17.3%) |
| Administrative expenses |
(129,368) |
(103,072) |
(25.5%) |
| Depreciation and amortization |
(13,786) |
(15,486) |
11.0% |
| Other operating expenses |
(116,162) |
(87,573) |
(32.6%) |
| Operating expenses |
(377,644) |
(306,994) |
(23.0%) |
| Operating income |
467,729 |
292,825 |
59.7% |
| Income from associates and joint ventures |
717 |
(1,190) |
160.3% |
| Income from net monetary position |
(351,329) |
(217,303) |
(61.7%) |
| Income before income tax |
117,117 |
74,332 |
57.6% |
| Income tax |
(41,233) |
8,624 |
n.m |
| Income for the period |
75,884 |
82,956 |
(8.5%) |
| Owners of the parent |
75,236 |
84,262 |
(10.7%) |
| Non-controlling interests |
648 |
(1,306) |
149.6% |
| |
|
|
|
| Other comprehensive Income (OCI) (1) |
(3,771) |
(7,018) |
46.3% |
| Total comprehensive income |
72,113 |
75,938 |
(5.0%) |
2 Source:
Instituto Nacional de Estadística y Censos (INDEC).
During the first nine months of 2023, BBVA Argentina
net income was $75.9 billion, 8.5% lower than the $83.0 billion reported in the first nine months of 2022. This implied an accumulated
annualized ROAE of 13.5% and a ROAA of 2.6% in 2023, compared to an accumulated annualized ROAE of 17.8% and a ROAA of 3.2% in 2022.
The 59.7% increment in real terms of the Bank’s
operating income is mainly explained by an increase in interest income, mostly due to an increase in the position and yield of Central
Bank instruments and CER bonds.
These effects were negatively offset by (i)
lower net fee income, (ii) lower foreign exchange and gold gains results, (iii) other operating expenses, the latter affected by the increase
in turnover tax derived from a greater income from LELIQ interests, and (iii) higher administrative expenses, mainly due to expenses related
to software and licenses hired through the controlling company abroad.
Another
factor to consider is the income tax line, which had a positive result in the first nine months of 2022 of $8.6 billion, explained
by the implications of fiscal inflation adjustments in the determination of payable taxes and tax deferrals,
recorded during the second quarter of 2022.
Additionally,
net income is affected by income from net monetary position in a context of higher inflation (103.2% 2023 nine month accumulated, versus
66.1% accumulated in the same period of 2022[3]).
| EARNINGS PER SHARE |
BBVA ARGENTINA CONSOLIDATED |
| |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Financial Statement information |
|
|
|
|
|
| Net income for the period attributable to owners of the parent (in AR$ millions, inflation adjusted) |
9,631 |
40,525 |
23,444 |
(76.2%) |
(58.9%) |
| Total shares outstanding (1) |
612,710 |
612,710 |
612,710 |
- |
- |
| Market information |
|
|
|
|
|
| Closing price of ordinary share at BYMA (in AR$) |
1,024.4 |
1,020.7 |
315.9 |
0.4% |
224.3% |
| Closing price of ADS at NYSE (in USD) |
4.2 |
6.1 |
3.0 |
(32.3%) |
37.9% |
| Book value per share (in AR$) |
1,247.90 |
1,247.67 |
1,174.34 |
0.0% |
6.3% |
| Price-to-book ratio (BYMA price) (%) |
0.82 |
0.82 |
0.27 |
0.4% |
205.2% |
| Earnings per share (in AR$) |
15.72 |
66.14 |
38.26 |
(76.2%) |
(58.9%) |
| Earnings per ADS(2) (in AR$) |
47.16 |
198.42 |
114.79 |
(76.2%) |
(58.9%) |
| |
|
|
|
|
|
| (1) In thousands of shares. |
|
|
|
|
|
| (2) Each ADS accounts for 3 ordinary shares |
|
|
|
|
|
3 Source: Instituto Nacional de Estadística y Censos
(INDEC).
Net Interest Income
| NET INTEREST INCOME |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Net Interest Income |
270,235 |
250,101 |
182,491 |
8.1% |
48.1% |
| Interest Income |
586,891 |
500,488 |
343,875 |
17.3% |
70.7% |
| From government securities |
229,932 |
205,110 |
142,943 |
12.1% |
60.9% |
| From private securities |
683 |
602 |
327 |
13.5% |
108.9% |
| Interest from loans and other financing |
201,347 |
171,592 |
121,168 |
17.3% |
66.2% |
| Financial Sector |
714 |
862 |
1,378 |
(17.2%) |
(48.2%) |
| Overdrafts |
30,875 |
27,275 |
17,609 |
13.2% |
75.3% |
| Discounted Instruments |
61,906 |
43,738 |
20,441 |
41.5% |
202.9% |
| Mortgage loans |
872 |
855 |
2,063 |
2.0% |
(57.7%) |
| Pledge loans |
6,313 |
5,946 |
5,488 |
6.2% |
15.0% |
| Consumer Loans |
21,172 |
21,468 |
16,376 |
(1.4%) |
29.3% |
| Credit Cards |
45,569 |
44,485 |
31,646 |
2.4% |
44.0% |
| Financial leases |
1,660 |
1,419 |
1,055 |
17.0% |
57.3% |
| Loans for the prefinancing and financing of exports |
344 |
261 |
358 |
31.8% |
(3.9%) |
| Other loans |
31,922 |
25,283 |
24,754 |
26.3% |
29.0% |
| Premiums on reverse REPO transactions |
76,607 |
42,666 |
13,898 |
79.6% |
451.2% |
| CER/UVA clause adjustment |
77,965 |
80,126 |
65,267 |
(2.7%) |
19.5% |
| Other interest income |
357 |
392 |
272 |
(8.9%) |
31.3% |
| Interest expenses |
316,656 |
250,387 |
161,384 |
26.5% |
96.2% |
| Deposits |
306,156 |
237,032 |
137,128 |
29.2% |
123.3% |
| Checking accounts |
81,788 |
41,440 |
21,795 |
97.4% |
275.3% |
| Savings accounts |
1,057 |
1,145 |
881 |
(7.7%) |
20.0% |
| Time deposits |
183,237 |
151,749 |
79,877 |
20.8% |
129.4% |
| Investment accounts |
40,074 |
42,698 |
34,575 |
(6.1%) |
15.9% |
| Other liabilities from financial transactions |
187 |
156 |
315 |
19.9% |
(40.6%) |
| Interfinancial loans received |
4,727 |
4,137 |
5,346 |
14.3% |
(11.6%) |
| Premiums on REPO transactions |
15 |
- |
41 |
N/A |
(63.4%) |
| CER/UVA clause adjustment |
5,568 |
9,058 |
18,550 |
(38.5%) |
(70.0%) |
| Other interest expense |
3 |
4 |
4 |
(25.0%) |
(25.0%) |
Net interest income for 3Q23
was $270.2 billion, increasing 8.1% or $20.1 billion QoQ, and 48.1% or $87.7 billion YoY. In 3Q23, interest income, in monetary terms,
increased more than interest expense, mainly due to (i) an increase from premium from reverse REPOs, (ii) a higher position and yield
of public securities, in particular of LELIQ, and (iii) the positive effect of income from loans, especially from discounted instruments
(mainly due to productive investment credit lines for SMEs). This was offset by the negative effect of interest expenses from checking
accounts and time deposits.
In 3Q23, interest income totaled $586.9 billion,
increasing 17.3% compared to 2Q23 and 70.7% compared to 3Q22. Quarterly increase is mainly driven by (i) an increase in income from reverse
REPOs, and (ii) a higher position in public securities, especially LELIQ.
Income from government securities increased
12.1% compared to 2Q23, and 60.9% compared to 3Q22. This is partially due to the higher average position in LELIQ, added to a gradual
increase in the monetary policy rate from 97% at the beginning of the quarter up to 118% at quarter end. 94% of these results are explained
by government securities at fair value through OCI (of which 76% are BCRA securities) and 4% are 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 $201.3 billion, increasing 17.3% QoQ and 66.2% YoY. Quarterly growth is mainly due to an increase in rates, especially through
the discounted instruments line by 41.5%, through an increase in productive investment credit lines for SMEs.
Income from CER/UVA adjustments decreased 2.7%
QoQ and increased 19.5% YoY. Quarterly decline is explained by the delay with which the inflation adjustment effects are recorded, and
impact on the subsequent financial statements. 78% of income from interests from CER/UVA clause adjustments is explained by interests
generated by bonds linked to such indexes.
Interest expenses totaled $316.6 billion, denoting
a 26.5% increase QoQ and a 96.2% increase YoY. Quarterly increase is described by higher checking accounts (in particular interest-bearing
checking accounts) and time deposit expenses.
Interests from time deposits (including investment
accounts) explain 70.5% of interest expenses, versus 77.7% the previous quarter. These increased 20.8% QoQ and 129.4% YoY.
NIM
As of 3Q23, net interest margin
(NIM) was 36.0%, above the 33.3% reported in 2Q23. In 3Q23, NIM in pesos was 37.5% and 1.9% in U.S. dollars.
| ASSETS & LIABILITIES PERFORMANCE - TOTAL |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$. Rates and spreads in annualized % |
|
|
|
|
|
|
|
|
| |
3Q23 |
2Q23 |
3Q22 |
| |
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 |
2,981,516 |
586,891 |
78.1% |
3,012,790 |
500,488 |
66.6% |
2,768,616 |
343,734 |
49.3% |
| Debt securities |
1,545,312 |
368,175 |
94.5% |
1,596,203 |
309,728 |
77.8% |
1,334,227 |
204,344 |
60.8% |
| Loans to customers/financial institutions |
1,374,136 |
218,711 |
63.1% |
1,368,876 |
190,748 |
55.9% |
1,380,706 |
139,386 |
40.1% |
| Loans to the BCRA |
106 |
3 |
11.2% |
4 |
9 |
935.9% |
5 |
2 |
198.4% |
| Other assets |
61,962 |
2 |
0.0% |
47,707 |
3 |
0.0% |
53,678 |
2 |
0.0% |
| Total non interest-earning assets |
894,149 |
- |
0.0% |
929,810 |
- |
0.0% |
946,308 |
141 |
0.1% |
| Total Assets |
3,875,665 |
586,891 |
60.1% |
3,942,600 |
500,488 |
50.9% |
3,714,923 |
343,875 |
36.7% |
| Total interest-bearing liabilities |
2,025,297 |
316,656 |
62.0% |
2,008,031 |
250,387 |
50.0% |
1,895,858 |
161,384 |
33.8% |
| Savings accounts |
652,403 |
1,057 |
0.6% |
692,542 |
1,145 |
0.7% |
692,146 |
879 |
0.5% |
| Time deposits and investment accounts |
968,014 |
228,878 |
93.8% |
1,034,589 |
203,507 |
78.9% |
961,877 |
133,004 |
54.9% |
| Debt securities issued |
- |
4 |
- |
- |
32 |
- |
455 |
212 |
184.9% |
| Other liabilities |
404,880 |
86,717 |
85.0% |
280,901 |
45,703 |
65.3% |
241,380 |
27,288 |
44.9% |
| Total non-interest-bearing liabilities |
1,850,368 |
- |
0.0% |
1,934,569 |
- |
0.0% |
1,819,065 |
- |
0.0% |
| Total liabilities and equity |
3,875,665 |
316,656 |
32.4% |
3,942,600 |
250,387 |
25.5% |
3,714,923 |
161,384 |
17.2% |
| |
|
|
|
|
|
|
|
|
|
| NIM - Total |
|
|
36.0% |
|
|
33.3% |
|
|
26.1% |
| Spread - Total |
|
|
16.1% |
|
|
16.6% |
|
|
15.5% |
| |
|
|
|
|
|
|
|
|
|
| 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. |
|
| ASSETS & LIABILITIES PERFORMANCE - AR$ |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$. Rates and spreads in annualized % |
|
|
|
|
|
|
|
|
| |
3Q23 |
2Q23 |
3Q22 |
| |
Average Balance |
Interest Earned/Paid |
Average Real Rate |
Average Balance |
Interest Earned/Paid |
Average Real Rate |
Average Balance |
Interest Earned/Paid |
Average Real Rate |
| Total interest-earning assets |
2,848,446 |
586,100 |
81.6% |
2,864,656 |
499,895 |
70.0% |
2,647,759 |
343,079 |
51.4% |
| Debt securities |
1,504,786 |
368,054 |
97.0% |
1,529,410 |
309,640 |
81.2% |
1,316,444 |
204,294 |
61.6% |
| Loans to customers/financial institutions |
1,281,842 |
218,043 |
67.5% |
1,287,582 |
190,245 |
59.3% |
1,292,041 |
138,783 |
42.6% |
| Loans to the BCRA |
105 |
3 |
11.3% |
3 |
9 |
1403.8% |
2 |
2 |
396.7% |
| Other assets |
61,713 |
- |
0.0% |
47,662 |
- |
0.0% |
39,271 |
- |
0.0% |
| Total non interest-earning assets |
421,888 |
- |
0.0% |
455,969 |
- |
0.0% |
498,573 |
- |
0.0% |
| Total Assets |
3,270,334 |
586,100 |
71.1% |
3,320,625 |
499,895 |
60.4% |
3,146,331 |
343,079 |
43.3% |
| Total interest-bearing liabilities |
1,640,987 |
316,513 |
76.5% |
1,635,742 |
250,309 |
61.4% |
1,529,022 |
161,336 |
41.9% |
| Savings accounts |
326,825 |
1,051 |
1.3% |
372,489 |
1,139 |
1.2% |
376,031 |
874 |
0.9% |
| Time deposits and Investment accounts |
914,525 |
228,855 |
99.3% |
989,513 |
203,486 |
82.5% |
912,822 |
132,981 |
57.8% |
| Debt securities issued |
- |
4 |
- |
- |
32 |
- |
455 |
212 |
184.9% |
| Other liabilities |
399,637 |
86,603 |
86.0% |
273,740 |
45,651 |
66.9% |
239,714 |
27,269 |
45.1% |
| Total non-interest-bearing liabilities |
1,664,932 |
- |
0.0% |
1,742,459 |
- |
0.0% |
1,627,974 |
- |
0.0% |
| Total liabilities and equity |
3,305,919 |
316,513 |
38.0% |
3,378,201 |
250,309 |
29.7% |
3,156,997 |
161,336 |
20.3% |
| |
|
|
|
|
|
|
|
|
|
| NIM - AR$ |
|
|
37.5% |
|
|
34.9% |
|
|
27.2% |
| Spread - AR$ |
|
|
5.1% |
|
|
8.6% |
|
|
9.5% |
| |
|
|
|
|
|
|
|
|
|
| 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. |
| ASSETS & LIABILITIES PERFORMANCE - FOREIGN CURRENCY |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$. Rates and spreads in annualized % |
|
|
|
|
|
|
|
|
| |
3Q23 |
2Q23 |
3Q22 |
| |
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 |
133,070 |
791 |
2.4% |
148,134 |
593 |
1.6% |
120,857 |
655 |
2.2% |
| Debt securities |
40,526 |
121 |
1.2% |
66,793 |
88 |
0.5% |
17,783 |
50 |
1.1% |
| Loans to customers/financial institutions |
92,294 |
668 |
2.9% |
81,295 |
503 |
2.5% |
88,665 |
603 |
2.7% |
| Loans to the BCRA |
1 |
- |
0.0% |
1 |
- |
0.0% |
2 |
- |
0.0% |
| Other assets |
249 |
2 |
3.2% |
44 |
3 |
24.3% |
14,407 |
2 |
0.1% |
| Total non interest-earning assets |
472,261 |
- |
0.0% |
473,841 |
- |
0.0% |
447,735 |
141 |
0.1% |
| Total Assets |
605,331 |
791 |
0.5% |
621,975 |
593 |
0.4% |
568,592 |
796 |
0.6% |
| Total interest-bearing liabilities |
384,310 |
143 |
0.1% |
372,289 |
78 |
0.1% |
366,836 |
48 |
0.1% |
| Savings accounts |
325,578 |
6 |
0.0% |
320,053 |
5 |
0.0% |
316,115 |
5 |
0.0% |
| Time deposits and Investment accounts |
53,489 |
23 |
0.2% |
45,076 |
20 |
0.2% |
49,055 |
24 |
0.2% |
| Other liabilities |
5,243 |
114 |
8.6% |
7,160 |
53 |
2.9% |
1,666 |
19 |
4.5% |
| Total non-interest-bearing liabilities |
185,436 |
- |
0.0% |
192,110 |
- |
0.0% |
191,091 |
- |
0.0% |
| Total liabilities and equity |
569,746 |
143 |
0.1% |
564,399 |
78 |
0.1% |
557,926 |
48 |
0.0% |
| |
|
|
|
|
|
|
|
|
|
| NIM - Foreign currency |
|
|
1.9% |
|
|
1.4% |
|
|
2.0% |
| Spread - Foreign currency |
|
|
2.2% |
|
|
1.5% |
|
|
2.1% |
| |
|
|
|
|
|
|
|
|
|
| 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 |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Net Fee Income |
17,623 |
32,004 |
21,730 |
(44.9%) |
(18.9%) |
| Fee Income |
39,521 |
44,971 |
39,351 |
(12.1%) |
0.4% |
| Linked to liabilities |
13,807 |
14,551 |
17,039 |
(5.1%) |
(19.0%) |
| From credit cards (1) |
17,011 |
21,540 |
14,986 |
(21.0%) |
13.5% |
| Linked to loans |
4,253 |
4,475 |
3,214 |
(5.0%) |
32.3% |
| From insurance |
1,609 |
1,606 |
1,731 |
0.2% |
(7.0%) |
| From foreign trade and foreign currency transactions |
1,669 |
1,913 |
1,919 |
(12.8%) |
(13.0%) |
| Other fee income |
1,104 |
773 |
462 |
42.8% |
139.0% |
| Linked to loan commitments |
68 |
113 |
- |
(39.8%) |
N/A |
| From guarantees granted |
20 |
14 |
2 |
42.9% |
n.m |
| Linked to securities |
1,084 |
759 |
460 |
42.8% |
135.7% |
| Fee expenses |
21,898 |
12,967 |
17,621 |
68.9% |
24.3% |
| (1) Includes results from Puntos BBVA royalty program pursuant to IFRS 15 regulation. |
|
|
|
|
Net fee income as of 3Q23 totaled
$17.6 billion, decreasing 44.9% or $14.4 billion QoQ and 18.9% or $4.1 billion YoY.
In 3Q23, fee income totaled
$39.5 billion, falling 12.1% QoQ and lightly increasing 0.4% YoY. The quarterly decrease is mainly explained by a 21.0% fall in fees from
credit cards, considering that this line includes Puntos BBVA royalty program, and that there was a greater use of this program. Additionally,
an increase in prices was implemented during September, not getting to offset the negative effect of inflation, and denoting a 5.1% fall
in the fees linked to liabilities line.
Regarding fee expenses, these
totaled $22.0 billion, increasing 68.9% QoQ and 24.3% YoY. Greater expenses are explained by fees paid in foreign exchange transactions
related to royalties affected by the devaluation of the local currency, and client acquisition costs, which translated into a 4% increase
in active clients in 3Q23.
Net Income from Measurement
of Financial Instruments at Fair Value and Foreign Exchange and Gold Gains/Losses
| NET INCOME FROM FINANCIAL INSTRUMENTS AT FAIR VALUE (FV) THROUGH P&L |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Net Income from financial instruments at FV through P&L |
8,171 |
9,996 |
8,940 |
(18.3%) |
(8.6%) |
| Income from government securities |
5,273 |
9,950 |
6,092 |
(47.0%) |
(13.4%) |
| Income from private securities |
377 |
641 |
986 |
(41.2%) |
(61.8%) |
| Interest rate swaps |
(71) |
(80) |
240 |
11.3% |
(129.6%) |
| Income from foreign currency forward transactions |
1,934 |
(400) |
1,644 |
n.m |
17.6% |
| Income from put option long position |
- |
(115) |
(23) |
100.0% |
100.0% |
| Income from corporate bonds |
657 |
- |
1 |
N/A |
n.m |
| Other |
1 |
- |
- |
N/A |
N/A |
In 3Q23, net income from financial
instruments at fair value (FV) through P&L was $8.2 billion, decreasing 18.3% or $1.8 million QoQ and 8.6% or $769 million YoY.
Quarterly results are mainly
explained by a decrease in the income from government securities line item, due to a lower LELIQ position at fair value through
P&L.
| DIFFERENCES IN QUOTED PRICES OF GOLD AND FOREIGN FOREIGN CURRENCY |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Foreign exchange and gold gains/(losses) (1) |
2,140 |
4,357 |
5,300 |
(50.9%) |
(59.6%) |
| From foreign exchange position |
(4,428) |
(2,240) |
(1,753) |
(97.7%) |
(152.6%) |
| Income from purchase-sale of foreign currency |
6,568 |
6,597 |
7,053 |
(0.4%) |
(6.9%) |
| Net income from financial instruments at FV through P&L (2) |
1,934 |
(400) |
1,644 |
n.m |
17.6% |
| Income from foreign currency forward transactions |
1,934 |
(400) |
1,644 |
n.m |
17.6% |
| Total differences in quoted prices of gold & foreign currency (1) + (2) |
4,074 |
3,957 |
6,944 |
3.0% |
(41.3%) |
In 3Q23, the total differences
in quoted prices of gold and foreign currency showed profit for $4.1 billion, increasing 3.0% or $117 million compared to 2Q23.
The quarterly increase in foreign
exchange and gold gains is mainly explained by a higher result from income from foreign currency forward transactions.
In particular, within the line
of foreign exchange and gold gains, the 50.9% loss is explained mostly by the devaluation of the argentine peso by 26.7%[4]
QoQ, which affected liabilities in foreign currency, such as invoices payable in foreign currency abroad.
4 Taking into consideration wholesale U.S. dollar foreign
exchange rates on BCRA’s Communication “A” 3500.
Other Operating Income
| OTHER OPERATING INCOME |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Operating Income |
9,991 |
9,457 |
10,722 |
5.6% |
(6.8%) |
| Rental of safe deposit boxes (1) |
1,382 |
1,409 |
1,341 |
(1.9%) |
3.1% |
| Adjustments and interest on miscellaneous receivables (1) |
4,647 |
3,853 |
3,691 |
20.6% |
25.9% |
| Punitive interest (1) |
444 |
425 |
255 |
4.5% |
74.1% |
| Loans recovered |
1,145 |
762 |
1,384 |
50.3% |
(17.3%) |
| Non-current assets held for sale |
- |
- |
926 |
N/A |
(100.0%) |
| Fee income from credit and debit cards (1) |
772 |
734 |
921 |
5.2% |
(16.2%) |
| Fee expenses recovery |
391 |
369 |
392 |
6.0% |
(0.3%) |
| Rents |
417 |
391 |
284 |
6.6% |
46.8% |
| Sindicated transaction fees |
168 |
128 |
96 |
31.3% |
75.0% |
| Disaffected provisions |
151 |
239 |
380 |
(36.8%) |
(60.3%) |
| Other Operating Income(2) |
474 |
1,147 |
1,052 |
(58.7%) |
(54.9%) |
| (1) Included in the efficiency ratio calculation |
|
|
|
|
|
| (2) Includes some of the concepts used in the efficiency ratio calculation |
|
|
|
|
|
In 3Q23 other operating income
totaled $10.0 billion, growing 5.6% or $534 million QoQ, and falling 6.8% or $731 million YoY. Quarterly increase is partially explained
by a 20.6% growth in the Adjustments and interest on miscellaneous receivables line item (mainly loans related to Prisma sale),
followed by a 50.3% increase in the loans recovered line.
Operating Expenses
Personnel Benefits and Administrative
Expenses
| PERSONNEL BENEFITS & ADMINISTRATIVE EXPENSES |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Total Personnel Benefits and Adminsitrative Expenses |
89,761 |
81,115 |
68,025 |
10.7% |
32.0% |
| Personnel Benefits (1) |
42,416 |
39,110 |
33,026 |
8.5% |
28.4% |
| Administrative expenses (1) |
47,345 |
42,005 |
34,999 |
12.7% |
35.3% |
| Travel expenses |
338 |
258 |
211 |
31.0% |
60.2% |
| Outsourced administrative expenses |
6,058 |
5,018 |
3,693 |
20.7% |
64.0% |
| Security services |
1,044 |
956 |
888 |
9.2% |
17.6% |
| Fees to Bank Directors and Supervisory Committee |
39 |
50 |
28 |
(22.0%) |
39.3% |
| Other fees |
1,389 |
1,386 |
937 |
0.2% |
48.2% |
| Insurance |
326 |
281 |
327 |
16.0% |
(0.3%) |
| Rent |
6,722 |
6,522 |
5,053 |
3.1% |
33.0% |
| Stationery and supplies |
81 |
54 |
49 |
50.0% |
65.3% |
| Electricity and communications |
1,337 |
1,304 |
1,210 |
2.5% |
10.5% |
| Advertising |
2,136 |
2,288 |
1,656 |
(6.6%) |
29.0% |
| Taxes |
8,840 |
8,039 |
7,352 |
10.0% |
20.2% |
| Maintenance costs |
3,530 |
3,147 |
3,333 |
12.2% |
5.9% |
| Armored transportation services |
3,356 |
3,398 |
3,478 |
(1.2%) |
(3.5%) |
| Software |
8,605 |
6,350 |
3,841 |
35.5% |
124.0% |
| Document distribution |
1,052 |
1,044 |
1,007 |
0.8% |
4.5% |
| Commercial reports |
668 |
400 |
667 |
67.0% |
0.1% |
| Other administrative expenses |
1,824 |
1,510 |
1,269 |
20.8% |
43.7% |
| |
|
|
|
|
|
| Headcount* |
|
|
|
|
|
| BBVA (Bank) |
5,885 |
5,863 |
5,746 |
22 |
139 |
| Subsidiaries (2) |
93 |
94 |
93 |
(1) |
- |
| Total employees* |
6,011 |
5,982 |
5,880 |
29 |
131 |
| In branches** |
2,193 |
1,947 |
1,927 |
246 |
266 |
| At Main office |
3,818 |
4,035 |
3,953 |
(217) |
(135) |
| |
|
|
|
|
|
| Total branches*** |
243 |
243 |
243 |
- |
- |
| Own |
114 |
113 |
113 |
1 |
1 |
| Rented |
129 |
130 |
130 |
(1) |
(1) |
| |
|
|
|
- |
|
| Efficiency Ratio |
|
|
|
|
|
| Efficiency ratio |
82.4% |
52.0% |
64.8% |
3,039 bps |
1,760 bps |
| Accumulated Efficiency Ratio |
63.8% |
56.6% |
69.0% |
719 bps |
(519)bps |
| |
|
|
|
|
|
| (1) Concept included in the efficiency ratio calculation |
|
|
|
|
|
| (2) Includes BBVA Asset Management, PSA & VWFS. Employees included in Main Office. |
|
|
|
|
|
| *Total effective employees, net of temporary contract employees. Expatriates excluded. |
|
|
|
|
|
| **Branch employees + Business Center managers |
|
|
|
|
|
| ***Excludes administrative branches |
|
|
|
|
|
During 3Q23, personnel benefits
and administrative expenses totaled $89.8 billion, increasing 10.7% or $8.6 billion compared to 2Q23, and 32.0% or $21.7 billion compared
to 3Q22.
Personnel benefits increased
8.5% QoQ, and 28.4% YoY. The quarterly increase is mainly explained by the projected inflation adjustment of vacation stock provisions
and variable compensations. This adjustment is applied retroactively. Additionally, the effect of collective agreement on wages with the
unions for 3Q23 by 32% (+97% accumulated year to date) was offset by the release of provisions previously comprised for such purposes.
As of 3Q23, administrative expenses
increased 12.7% QoQ, and 35.3% YoY. The quarterly increase is mainly explained by (i) outsourced administrative expenses, (ii) greater
rent expenses, (iii) taxes, and (iv) an increase in software services. All of these were related to an increase in the amount of services
contracted, and an increase in expenses of services contracted with the Parent company.
The quarterly efficiency ratio
as of 3Q23 was 82.4%, increasing compared to the 52.0% reported in 2Q23, and versus the 64.8% reported in 3Q22. The quarterly increase
is explained by a higher increase in the numerator (expenses) than the denominator (income considering monetary position results), especially
due to a significant increase in results from the net monetary position.
The accumulated efficiency ratio
as of 3Q23 was 63.8%, increasing compared to the 56.6% reported in 2Q23, and improving versus the 69.0% reported in 3Q22.
Other Operating Expenses
| OTHER OPERATING EXPENSES |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Other Operating Expenses |
43,074 |
39,225 |
31,334 |
9.8% |
37.5% |
| Turnover tax |
36,605 |
30,629 |
21,948 |
19.5% |
66.8% |
| Initial loss of loans below market rate |
1,169 |
1,423 |
2,281 |
(17.8%) |
(48.8%) |
| Contribution to the Deposit Guarantee Fund (SEDESA) |
956 |
970 |
1,026 |
(1.4%) |
(6.8%) |
| Interest on liabilities from financial lease |
273 |
237 |
302 |
15.2% |
(9.6%) |
| Other allowances |
387 |
2,910 |
2,432 |
(86.7%) |
(84.1%) |
| Other operating expenses |
3,684 |
3,056 |
3,345 |
20.5% |
10.1% |
In 3Q23, other operating expenses
totaled $43.1 billion, increasing 9.8% or $3.8 billion QoQ, and increasing 37.5% or $11.7 billion YoY.
The key factor explaining the
quarterly growth is in the turnover tax line item, especially due to an increased revenue from interests from loans and revenues
from LELIQ. These expenses are offset by a fall in the other allowances line, linked to the release of provisions related to credit
cards.
Income from Associates
This line reflects the results
from non-consolidated associate companies. During 3Q23, a profit of $18 million has been reported, mainly due to the Bank’s participation
in BBVA Seguros Argentina S.A., Rombo Compañía Financiera S.A., Interbanking S.A. and Play Digital S.A. and Openpay Argentina
S.A.
Income Tax
Accumulated income tax during
the first nine months of 2023 recorded a loss of $41.2 billion. As of 3Q23, income tax expense was $5.4 billion.
In the quarter, there is a positive effect in
the income tax line, considering the final judgments dictated by the Supreme Court of Justice concerning fiscal years 2014 and 2013, rejecting
the extraordinary appeal and the claim presented by the tax authorities, and affirming the prior favorable final judgments. Applying the
accounting information framework established by the BCRA, the Bank has recorded a positive result of $7.4 billion as of September 30,
2023.
The nine month accumulated effective tax rate
in 2023 was 35%[5].
Accumulated income tax during
the first nine months of 2022 recorded a profit of $8.6 billion. Regarding 2Q22, income tax expenses show a positive result, affected
by the implications of inflation adjustments in the determination of payable taxes and tax deferrals.
5 Income tax, according to IAS 34, is recorded on interim
financial periods over the best estimate of the weighted average tax rate expected for the fiscal year.
Balance sheet and activity
Loans and Other Financing
| LOANS AND OTHER FINANCING |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| To the public sector |
56 |
5 |
13 |
n.m |
330.8% |
| To the financial sector |
5,433 |
9,550 |
11,798 |
(43.1%) |
(53.9%) |
| Non-financial private sector and residents abroad |
1,386,037 |
1,455,698 |
1,387,717 |
(4.8%) |
(0.1%) |
| Non-financial private sector and residents abroad - AR$ |
1,292,530 |
1,364,510 |
1,299,506 |
(5.3%) |
(0.5%) |
| Overdrafts |
113,366 |
112,300 |
114,022 |
0.9% |
(0.6%) |
| Discounted instruments |
304,672 |
283,215 |
177,389 |
7.6% |
71.8% |
| Mortgage loans |
61,951 |
70,697 |
80,203 |
(12.4%) |
(22.8%) |
| Pledge loans |
38,446 |
43,705 |
52,614 |
(12.0%) |
(26.9%) |
| Consumer loans |
126,135 |
142,813 |
146,466 |
(11.7%) |
(13.9%) |
| Credit cards |
480,385 |
530,399 |
523,516 |
(9.4%) |
(8.2%) |
| Receivables from financial leases |
10,960 |
11,988 |
11,989 |
(8.6%) |
(8.6%) |
| Other loans |
156,615 |
169,393 |
193,307 |
(7.5%) |
(19.0%) |
| Non-financial private sector and residents abroad - Foreign Currency |
93,507 |
91,188 |
88,211 |
2.5% |
6.0% |
| Overdrafts |
9 |
10 |
13 |
(10.0%) |
(30.8%) |
| Discounted instruments |
1,986 |
2,985 |
292 |
(33.5%) |
n.m |
| Credit cards |
15,899 |
14,529 |
18,340 |
9.4% |
(13.3%) |
| Receivables from financial leases |
75 |
125 |
216 |
(40.0%) |
(65.3%) |
| Loans for the prefinancing and financing of exports |
64,585 |
62,098 |
51,273 |
4.0% |
26.0% |
| Other loans |
10,953 |
11,441 |
18,077 |
(4.3%) |
(39.4%) |
| |
|
|
|
|
|
| % of total loans to Private sector in AR$ |
93.3% |
93.8% |
93.7% |
(49)bps |
(40)bps |
| % of total loans to Private sector in Foreign Currency |
6.7% |
6.2% |
6.3% |
49 bps |
40 bps |
| |
|
|
|
|
|
| % of mortgage loans with UVA adjustments / Total mortgage loans (1) |
54.2% |
55.3% |
57.8% |
(114)bps |
(368)bps |
| % of pledge loans with UVA adjustments / Total pledge loans (1) |
0.9% |
1.3% |
2.9% |
(38)bps |
(197)bps |
| % of consumer loans with UVA adjustments / Total consumer loans (1) |
0.1% |
0.2% |
1.1% |
(12)bps |
(97)bps |
| % of loans with UVA adjustments / Total loans and other financing(1) |
0.1% |
0.1% |
0.3% |
(3)bps |
(24)bps |
| |
|
|
|
|
|
| Total loans and other financing |
1,391,526 |
1,465,253 |
1,399,528 |
(5.0%) |
(0.6%) |
| Allowances |
(38,885) |
(46,812) |
(36,896) |
16.9% |
(5.4%) |
| Total net loans and other financing |
1,352,641 |
1,418,441 |
1,362,632 |
(4.6%) |
(0.7%) |
| |
|
|
|
|
|
| (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 |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| FX rate* |
350.01 |
256.68 |
147.32 |
36.4% |
137.6% |
| Non-financial private sector and residents abroad - Foreign Currency (USD) |
267 |
263 |
250 |
1.5% |
6.6% |
| *Wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500, as of the end of period. |
|
|
|
|
Private sector loans as of 3Q23
totaled $1.4 trillion, decreasing 4.8% or $69.7 billion QoQ, and 0.1% or $1.7 billion YoY.
Loans to the private sector
in pesos fell 5.3% in 3Q23, and 0.6% YoY. During the quarter, the decrease was especially driven by a 9.4% decline in credit cards,
followed by an 11.7% fall in consumer loans, a 7.5% fall in other loans (mainly commercial loans related to productive investment
credit lines for SMEs). The fall was partially offset by a 7.6% increase in discounted instruments, driven by the new productive
investment credit line quotas.
Loans to the private
sector denominated in foreign currency increased 2.6% QoQ and 6.3% YoY. Quarterly increase is mainly explained by a 4.0% growth in financing
and prefinancing of exports, and a 9.4% growth in credit cards. Loans to the private sector in foreign currency measured in
U.S. dollars increased 1.5% QoQ and 6.6% YoY. The depreciation of the argentine peso versus the U.S. dollar was 26.7% QoQ and 57.9% YoY[6].
In 3Q23, total loans and other
financing totaled $1.4 trillion, declining 4.6% QoQ and 0.7% compared to 3Q22.
| LOANS AND OTHER FINANCING |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Non-financial private sector and residents abroad - Retail |
722,816 |
802,143 |
821,139 |
(9.9%) |
(12.0%) |
| Mortgage loans |
61,951 |
70,697 |
80,203 |
(12.4%) |
(22.8%) |
| Pledge loans |
38,446 |
43,705 |
52,614 |
(12.0%) |
(26.9%) |
| Consumer loans |
126,135 |
142,813 |
146,466 |
(11.7%) |
(13.9%) |
| Credit cards |
496,284 |
544,928 |
541,856 |
(8.9%) |
(8.4%) |
| Non-financial private sector and residents abroad - Commercial |
663,221 |
653,555 |
566,578 |
1.5% |
17.1% |
| Overdrafts |
113,375 |
112,310 |
114,035 |
0.9% |
(0.6%) |
| Discounted instruments |
306,658 |
286,200 |
177,681 |
7.1% |
72.6% |
| Receivables from financial leases |
11,035 |
12,113 |
12,205 |
(8.9%) |
(9.6%) |
| Loans for the prefinancing and financing of exports |
64,585 |
62,098 |
51,273 |
4.0% |
26.0% |
| Other loans |
167,568 |
180,834 |
211,384 |
(7.3%) |
(20.7%) |
| |
|
|
|
|
|
| % of total loans to Retail sector |
52.1% |
55.1% |
59.2% |
(295)bps |
(702)bps |
| % of total loans to Commercial sector |
47.9% |
44.9% |
40.8% |
295 bps |
702 bps |
In real terms, retail loans
(mortgage, pledge, consumer and credit cards) fell 9.9% QoQ and 12.0% YoY in real terms. During the quarter all product lines decline,
mainly credit cards by 8.9% and consumer loans by 11.7%.
Commercial loans (overdrafts,
discounted instruments, receivables from financial leases, loans for the prefinancing and financing of exports, and other loans) increased
1.5% QoQ and 17.1% YoY, both in real terms. This is justified by quarterly increases in discounted instruments by 7.1% offset by
a 7.3% fall in other loans.
As observed in previous quarters,
loan portfolios were impacted by the effect of inflation during the third quarter of 2023, which reached 34.8%. In nominal terms, BBVA
Argentina managed to increase the retail, commercial and total loan portfolio by 21.5%, 36.8% and 28.0% respectively
during the quarter, only surpassing quarterly inflation levels in the case of commercial loans.
6 Taking into consideration wholesale U.S. dollar foreign
exchange rates on BCRA’s Communication “A” 3500.
| LOANS AND OTHER FINANCING - NON RESTATED FIGURES |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Non-financial private sector and residents abroad - Retail |
722,816 |
594,967 |
344,611 |
21.5% |
109.7% |
| Non-financial private sector and residents abroad - Commercial |
663,221 |
484,757 |
237,775 |
36.8% |
178.9% |
| Total loans and other financing (1) |
1,391,526 |
1,086,811 |
587,342 |
28.0% |
136.9% |
| (1) Does not include allowances |
|
|
|
|
|
As of 3Q23, the total loans
and other financing over deposits ratio was 53.6%, lower than the 54.1% recorded in 2Q23 and above the 55.2% in 3Q22.
| MARKET SHARE - PRIVATE SECTOR LOANS |
BBVA ARGENTINA CONSOLIDATED |
| In % |
|
|
|
∆ bps |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Private sector loans - Bank |
8.55% |
8.14% |
7.56% |
41 bps |
99 bps |
| Private sector loans - Consolidated* |
9.35% |
9.01% |
8.47% |
34 bps |
88 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 |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Government services |
0.00% |
0.00% |
0.00% |
n.m. |
n.m. |
| Non-financial public sector |
0.00% |
0.00% |
0.00% |
n.m. |
n.m. |
| Financial Sector |
0.39% |
0.65% |
0.84% |
(26)bps |
(45)bps |
| Agricultural and Livestock |
4.89% |
5.10% |
5.09% |
(20)bps |
(20)bps |
| Mining products |
4.51% |
3.75% |
3.23% |
77 bps |
128 bps |
| Other manufacturing |
11.36% |
9.18% |
11.64% |
218 bps |
(27)bps |
| Electricity, oil,water and sanitary services |
0.30% |
0.35% |
0.31% |
(5)bps |
(1)bps |
| Wholesale and retail trade |
8.53% |
6.81% |
5.63% |
173 bps |
290 bps |
| Transport |
1.70% |
1.77% |
1.55% |
(7)bps |
15 bps |
| Services |
1.61% |
2.08% |
1.69% |
(47)bps |
(8)bps |
| Others |
15.76% |
17.04% |
13.96% |
(128)bps |
179 bps |
| Construction |
0.66% |
0.62% |
0.75% |
4 bps |
(9)bps |
| Consumer |
50.28% |
52.66% |
55.30% |
(238)bps |
(502)bps |
| Total gross loans and other financing |
100% |
100% |
100% |
|
|
Asset Quality
| ASSET QUALITY |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Commercial non-performing portfolio (1) |
1,899 |
887 |
2,002 |
114.1% |
(5.1%) |
| Total commercial portfolio |
556,588 |
562,518 |
489,556 |
(1.1%) |
13.7% |
| Commercial non-performing portfolio / Total commercial portfolio |
0.34% |
0.16% |
0.41% |
18 pbs |
(7)pbs |
| Retail non-performing portfolio (1) |
18,976 |
20,543 |
13,575 |
(7.6%) |
39.8% |
| Total retail portfolio |
914,086 |
991,602 |
968,799 |
(7.8%) |
(5.6%) |
| Retail non-performing portfolio / Total retail portfolio |
2.08% |
2.07% |
1.40% |
0 pbs |
67 pbs |
| Total non-performing portfolio (1) |
20,875 |
21,430 |
15,577 |
(2.6%) |
34.0% |
| Total portfolio |
1,470,674 |
1,554,120 |
1,458,355 |
(5.4%) |
0.8% |
| Total non-performing portfolio / Total portfolio |
1.42% |
1.38% |
1.07% |
4 pbs |
35 pbs |
| Allowances |
38,885 |
46,812 |
36,896 |
(16.9%) |
5.4% |
| Allowances /Total non-performing portfolio |
186.28% |
218.44% |
236.86% |
(3.217)pbs |
(5.059)pbs |
| Quarterly change in Write-offs |
5,164 |
4,082 |
4,035 |
26.5% |
28.0% |
| Write offs / Total portfolio |
0.35% |
0.26% |
0.28% |
9 pbs |
7 pbs |
| Cost of Risk (CoR) |
2.14% |
4.09% |
2.65% |
(195)bps |
(51)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 3Q23, asset quality ratio or NPL (total
non-performing portfolio / total portfolio) keeps a very good performance at 1.42%. The increase from 2Q23’s 1.38% is explained
by a slight increase in the commercial non-performing portfolio (linked to an increment in the currency foreign exchange rate).
Coverage ratio
(allowances / total non-performing portfolio) decreased from 218.44% in 2Q23 to186.28% in 3Q23 due to the release
of provisions related to credit cards, derived from the stability in the NPL ratios of the retail portfolio.
Cost of risk
(loan loss allowances / average total loans) reached 2.14% in 3Q23 compared to 4.09% in 2Q23. The
decrease is related to the previously mentioned release of provisions.
| ANALYSIS FOR THE ALLOWANCE OF LOAN LOSSES |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ |
|
|
|
|
|
|
| |
Balance at 12/31/2022 |
Stage 1 |
Stage 2 |
Stage 3 |
Monetary result generated by allowances |
Balance at 09/30/2022 |
| Other financial assets |
939 |
103 |
- |
221 |
(553) |
710 |
| Loans and other financing |
42,437 |
3,999 |
2,359 |
18,749 |
(28,659) |
38,885 |
| Other debt securities |
65 |
32 |
- |
- |
(52) |
45 |
| Eventual commitments |
5,473 |
1,090 |
(414) |
92 |
(3,237) |
3,004 |
| Total allowances |
48,915 |
5,223 |
1,945 |
19,061 |
(32,500) |
42,644 |
| |
|
|
|
|
|
|
| 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 3Q23
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.
Public Sector Exposure
| NET PUBLIC DEBT EXPOSURE* |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Treasury and Government securities |
494,352 |
463,129 |
375,247 |
6.7% |
31.7% |
| Treasury and National Government |
494,352 |
463,129 |
375,247 |
6.7% |
31.7% |
| National Treasury Public Debt in AR$ |
414,205 |
463,122 |
360,647 |
(10.6%) |
14.9% |
| National Treasury Public Debt in USD |
24 |
7 |
1,940 |
243.9% |
(98.8%) |
| National Treasury Public Debt in AR$ linked to US dollars |
80,124 |
- |
12,660 |
N/A |
n.m |
| Loans to theNon-financial Public Sector |
56 |
5 |
6 |
n.m |
n.m |
| AR$ Subtotal |
414,261 |
463,127 |
360,653 |
(10.6%) |
14.9% |
| USD Subtotal** |
80,148 |
7 |
14,600 |
n.m |
449.0% |
| Total Public Debt Exposure |
494,408 |
463,134 |
375,253 |
6.8% |
31.8% |
| B.C.R.A. Exposure |
1,092,508 |
1,285,731 |
1,176,960 |
(15.0%) |
(7.2%) |
| Instruments |
787,744 |
1,048,808 |
949,903 |
(24.9%) |
(17.1%) |
| Leliqs |
775,493 |
1,005,898 |
888,087 |
(22.9%) |
(12.7%) |
| Notaliqs |
- |
- |
59,710 |
N/A |
(100.0%) |
| Lediv*** |
12,250 |
42,911 |
2,106 |
(71.5%) |
481.6% |
| Loans to the B.C.R.A. |
- |
- |
7 |
N/A |
(100.0%) |
| Repo / Pases |
304,765 |
236,923 |
227,051 |
28.6% |
34.2% |
| |
|
|
|
|
|
| % Public sector exposure (Excl. B.C.R.A.) / Total assets |
12.7% |
11.0% |
9.8% |
177 pbs |
290 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 |
3Q23 total public sector exposure
(excluding BCRA) totaled $494.4 billion, increasing 6.8% or $31.3 billion QoQ, and 31.8% or $119.2 billion YoY. The quarterly increase
is explained by an increment in the position of National Treasury bonds linked to the US dollar.
Short-term liquidity is mostly
allocated in BCRA instruments, which decreased 24.9% QoQ and 17.1% YoY in real terms. Total exposure to the BCRA decreased 15.0% in 3Q23.
Exposure to the public sector
(excluding BCRA) represents 12.7% of total assets, above the 11.0% in 2Q23 and above the 9.8% in 3Q22.
Deposits
| TOTAL DEPOSITS |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Total deposits |
2,593,867 |
2,709,531 |
2,534,570 |
(4.3%) |
2.3% |
| Non-financial Public Sector |
20,859 |
14,837 |
22,095 |
40.6% |
(5.6%) |
| Financial Sector |
1,287 |
2,550 |
1,512 |
(49.5%) |
(14.9%) |
| Non-financial private sector and residents abroad |
2,571,721 |
2,692,144 |
2,510,963 |
(4.5%) |
2.4% |
| Non-financial private sector and residents abroad - AR$ |
2,069,051 |
2,194,495 |
2,021,331 |
(5.7%) |
2.4% |
| Checking accounts |
763,624 |
616,343 |
529,955 |
23.9% |
44.1% |
| Savings accounts |
397,285 |
511,602 |
433,339 |
(22.3%) |
(8.3%) |
| Time deposits |
706,249 |
859,745 |
731,463 |
(17.9%) |
(3.4%) |
| Investment accounts |
188,925 |
192,105 |
311,456 |
(1.7%) |
(39.3%) |
| Other |
12,968 |
14,700 |
15,118 |
(11.8%) |
(14.2%) |
| Non-financial private sector and res. abroad - Foreign Currency |
502,670 |
497,649 |
489,632 |
1.0% |
2.7% |
| Checking accounts |
176 |
156 |
113 |
12.8% |
55.8% |
| Savings accounts |
443,715 |
447,679 |
434,772 |
(0.9%) |
2.1% |
| Time deposits |
53,792 |
44,928 |
49,394 |
19.7% |
8.9% |
| Other |
4,987 |
4,886 |
5,353 |
2.1% |
(6.8%) |
| |
|
|
|
|
|
| % of total portfolio in the private sector in AR$ |
80.5% |
81.5% |
80.5% |
(106)bps |
(5)bps |
| % of total portfolio in the private sector in Foregin Currency |
19.5% |
18.5% |
19.5% |
106 bps |
5 bps |
| |
|
|
|
|
|
| % of UVA Time deposits & Investment accounts / Total AR$ Time deposits & Investment accounts |
1.4% |
2.4% |
6.0% |
(98)bps |
(456)bps |
| DEPOSITS TO THE NON-FINANCIAL PRIVATE SECTOR AND RES. ABROAD IN FOREIGN CURRENCY |
BBVA ARGENTINA CONSOLIDATED |
| In millions of USD |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| FX rate* |
350.0 |
256.7 |
147.3 |
36.4% |
137.6% |
| Non-financial private sector and residents abroad - Foreign Currency (USD) |
1,436 |
1,438 |
1,395 |
(0.1%) |
3.0% |
| *Wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500, as of the end of period. |
As of 3Q23,
total deposits reached $2.6 trillion, decreasing 4.3% or $115.7 billion QoQ, and increasing 2.3% or $59.3 billion YoY.
Private non-financial
sector deposits in 3Q23 totaled $2.6 trillion, falling 4.5% QoQ, and increasing 2.4% YoY.
Private non-financial
sector deposits in pesos totaled $2.1 trillion, decreasing 5.7% compared to 2Q23, and growing 2.4% compared to 3Q22. The quarterly change
is mainly affected by a 17.9% decline in time deposits and a 22.3% fall in savings accounts, partially offset by a 23.9% increase in checking
accounts, especially interest-bearing checking accounts.
Private non-financial
sector deposits in foreign currency expressed in pesos increased 1.0% QoQ and 2.7% YoY. Measured in U.S. dollars, these deposits remained
stable with a mild fall of 0.1% QoQ, and a 3.0% growth YoY.
| PRIVATE DEPOSITS |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Non-financial private sector and residents abroad |
2,571,721 |
2,692,144 |
2,510,963 |
(4.5%) |
2.4% |
| Sight deposits |
1,622,755 |
1,595,366 |
1,418,650 |
1.7% |
14.4% |
| Checking accounts |
763,800 |
616,499 |
530,068 |
23.9% |
44.1% |
| Savings accounts |
841,000 |
959,281 |
868,111 |
(12.3%) |
(3.1%) |
| Other |
17,955 |
19,586 |
20,471 |
(8.3%) |
(12.3%) |
| Time deposits |
948,966 |
1,096,778 |
1,092,313 |
(13.5%) |
(13.1%) |
| Time deposits |
760,041 |
904,673 |
780,857 |
(16.0%) |
(2.7%) |
| Investment accounts |
188,925 |
192,105 |
311,456 |
(1.7%) |
(39.3%) |
| |
|
|
|
|
|
| % of sight deposits over total private deposits |
63.4% |
59.5% |
56.9% |
389 bps |
651 bps |
| % of time deposits over total private deposits |
36.6% |
40.5% |
43.1% |
(389)bps |
(651)bps |
As observed in previous quarters,
deposits were impacted by the effect of inflation. In spite of this, in nominal terms, BBVA Argentina managed to increase the sight deposits,
time deposits and total deposits by 37.1%, 16.7% and 29.1% respectively. The only line surpassing the level of quarterly inflation was
sight deposits.
| PRIVATE DEPOSITS - NON RESTATED FIGURES |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Sight deposits |
1,622,755 |
1,183,347 |
595,369 |
37.1% |
172.6% |
| Time deposits |
948,966 |
813,476 |
223,338 |
16.7% |
324.9% |
| Total deposits |
2,593,867 |
2,009,719 |
630,776 |
29.1% |
311.2% |
As of 3Q23, the Bank’s
transactional deposits (checking accounts and savings accounts) represented 61.9% of total non-financial private deposits, totaling $1.6
trillion, versus 58.2% in 2Q23.
| MARKET SHARE - PRIVATE SECTOR DEPOSITS |
BBVA ARGENTINA CONSOLIDATED |
| In % |
|
|
|
∆ bps |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Private sector Deposits - Consolidated* |
7.13% |
7.03% |
6.68% |
10 pbs |
35 pbs |
| |
|
|
|
|
|
| Based on daily BCRA information. Capital balance as of the last day of each quarter. |
| * Consolidates PSA, VWFS & Rombo |
Other Sources of Funds
| OTHER SOURCES OF FUNDS |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Other sources of funds |
776,426 |
790,450 |
744,088 |
(1.8%) |
4.3% |
| Central Bank |
85 |
113 |
140 |
(24.8%) |
(39.3%) |
| Banks and international organizations |
1,945 |
2,958 |
291 |
(34.2%) |
n.m |
| Financing received from local financial institutions |
21,453 |
34,291 |
34,838 |
(37.4%) |
(38.4%) |
| Corporate bonds |
- |
- |
749 |
N/A |
(100.0%) |
| Equity |
752,943 |
753,088 |
708,070 |
(0.0%) |
6.3% |
In 3Q23, other sources of funds
totaled $776.4 billion, falling 1.8% or $14.0 billion QoQ, and increasing 4.3% or $32.3 billion YoY. During 3Q23, installments 2, 3, and
4 of the dividend payment schedule were paid.
The variation in the quarter
is mostly explained by the 37.4% decline in financing received from local financial institutions taken by consolidated companies.
Liquid Assets
| TOTAL LIQUID ASSETS |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Total liquid assets |
1,987,635 |
2,279,496 |
1,988,921 |
(12.8%) |
(0.1%) |
| Cash and deposits in banks |
478,340 |
572,457 |
484,351 |
(16.4%) |
(1.2%) |
| Debt securities at fair value through P&L |
106,771 |
108,162 |
48,962 |
(1.3%) |
118.1% |
| Government securities |
106,632 |
75,998 |
14,463 |
40.3% |
n.m |
| Liquidity bills of B. C. R. A. |
139 |
32,164 |
34,499 |
(99.6%) |
(99.6%) |
| Net REPO transactions |
304,765 |
236,923 |
227,050 |
28.6% |
34.2% |
| Other debt securities |
1,097,759 |
1,361,954 |
1,228,558 |
(19.4%) |
(10.6%) |
| Government securities |
310,154 |
345,311 |
313,161 |
(10.2%) |
(1.0%) |
| Liquidity bills of B. C. R. A. |
775,355 |
973,732 |
913,291 |
(20.4%) |
(15.1%) |
| Internal bills of B.C.R.A. |
12,250 |
42,911 |
2,106 |
(71.5%) |
481.7% |
| |
|
|
|
|
|
| Liquid assets / Total Deposits |
76.6% |
84.1% |
78.5% |
(750)bps |
(184)bps |
In 3Q23, liquid assets were
$2.0 trillion, decreasing 12.8% or $291.9 billion versus 2Q23, and 0.1% or $1.3 billion compared to 2Q22. This was mainly driven by a
decrease in cash and deposits in banks.
In the quarter, the liquidity
ratio (liquid assets / total deposits) reached 76.6%. Liquidity ratio in local and foreign currency reached 70.1% and 102.6% respectively.
Solvency
| MINIMUM CAPITAL REQUIREMENT |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Minimum capital requirement |
205,354 |
201,325 |
194,738 |
2.0% |
5.5% |
| Credit risk |
146,799 |
141,990 |
138,749 |
3.4% |
5.8% |
| Market risk |
580 |
1,189 |
1,959 |
(51.2%) |
(70.4%) |
| Operational risk |
57,975 |
58,146 |
54,030 |
(0.3%) |
7.3% |
| |
|
|
|
|
|
| Integrated Capital - RPC (1)* |
681,818 |
699,429 |
625,686 |
(2.5%) |
9.0% |
| Ordinary Capital Level 1 ( COn1) |
743,144 |
755,439 |
711,210 |
(1.6%) |
4.5% |
| Deductible items COn1 |
(61,326) |
(65,530) |
(90,421) |
6.4% |
32.2% |
| Additional Capital Level 2 (COn2) |
- |
9,520 |
4,897 |
(100.0%) |
(100.0%) |
| |
|
|
|
|
|
| Excess Capital |
|
|
|
|
|
| Integration excess |
476,464 |
498,104 |
430,948 |
(4.3%) |
10.6% |
| Excess as % of minimum capital requirement |
232.0% |
247.4% |
221.3% |
(1,541)bps |
1,070 bps |
| |
|
|
|
|
|
| Risk-weighted assets (RWA, according to B.C.R.A. regulation) (2) |
2,513,477 |
2,464,862 |
2,383,706 |
2.0% |
5.4% |
| |
|
|
|
|
|
| Regulatory Capital Ratio (1)/(2) |
27.1% |
28.4% |
26.2% |
(125)pbs |
88 pbs |
| TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) |
27.1% |
28.0% |
0 pbs |
(86)pbs |
108 pbs |
| |
|
|
|
|
|
| * RPC includes 100% of quarterly results |
BBVA Argentina continues to show strong
solvency indicators on 3Q23. Capital ratio reached 27.1%, below 2Q23’s 28.4%. Tier 1 ratio was 27.1% and capital excess over regulatory
requirement was $476.5 billion or 232.0%.
The decline in the ratio was mainly
driven by the impact of de devaluation of the foreign exchange rate on risk weighted assets, combined with a nominal increment of loans.
It is worth mentioning that since August,
the BCRA has issued a clarification where “financial institutions that apply IFRS 9 cannot use what is stated in item 8.2.3.3 on
regulation “Minimum capitals for financial institutions (complementary equity calculation including risk loss provisions on portfolios
classified as in “normal” situation)”. This is the reason why Additional Capital Level 2 (Con2) is 0, and the
capital ratio and tier I ratio have the same value.
BBVA Argentina Asset Management
S.A.
| MUTUAL FUNDS ASSETS |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| FBA Renta Pesos |
855,879 |
811,796 |
734,078 |
5.4% |
16.6% |
| FBA Renta Fija Plus |
9,159 |
8,763 |
2,864 |
4.5% |
219.8% |
| FBA Ahorro Pesos |
8,962 |
8,730 |
3,565 |
2.7% |
151.4% |
| FBA Horizonte |
4,296 |
7,466 |
33,562 |
(42.5%) |
(87.2%) |
| FBA Calificado |
3,670 |
5,416 |
15,717 |
(32.2%) |
(76.6%) |
| FBA Acciones Argentinas |
2,715 |
2,757 |
1,866 |
(1.5%) |
45.5% |
| FBA Acciones Latinoamericanas |
1,931 |
2,331 |
1,527 |
(17.2%) |
26.5% |
| FBA Bonos Argentina |
1,071 |
1,488 |
3,157 |
(28.0%) |
(66.1%) |
| FBA Bonos Globales |
510 |
767 |
379 |
(33.5%) |
34.6% |
| FBA Renta Mixta |
445 |
551 |
874 |
(19.2%) |
(49.1%) |
| FBA Gestión I |
57 |
69 |
95 |
(17.4%) |
(40.0%) |
| FBA Horizonte Plus |
26 |
34 |
64 |
(23.5%) |
(59.4%) |
| FBA Retorno Total I |
14 |
19 |
45 |
(26.3%) |
(68.9%) |
| FBA Renta Publica I |
10 |
12 |
29 |
(16.7%) |
(65.5%) |
| FBA Renta Fija Local |
3 |
4 |
5 |
(25.0%) |
(40.0%) |
| FBA Renta Publica II |
- |
- |
- |
N/A |
N/A |
| Total assets |
888,748 |
850,203 |
797,827 |
4.5% |
11.4% |
| |
|
|
|
|
|
| AMASAU Net Income |
1,156 |
1,851 |
1,085 |
(37.5%) |
6.5% |
| MARKET SHARE - MUTUAL FUNDS |
BBVA ASSET MANAGEMENT |
| In % |
|
|
|
∆ bps |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Mutual funds |
5.58% |
5.77% |
5.76% |
(19)bps |
1 bps |
| |
|
|
|
|
|
| Source: Cámara Argentina de Fondos Comunes de Inversión |
Other Events
Main Relevant Events
| · | As of August 24, 2023, it was notified in regards to installment
4 of dividend payments, that as of September 5, 2023 the Bank will proceed to make available and pay to its existing shareholders on the
Bank's share register, as of September 5, 2023 a dividend, by means of the delivery of: |
| (i) | Payment in Kind: Up to 8,254,072,169 par value of the National
Treasury Bill in Pesos Adjusted by CER at a discount due November 23, 2023 (ISIN ARARGE520DT9) Ticker X23N3 (CV code 9197) at a ratio
of par value 13.4714156856 of the above mentioned security for each Company share of Ps. 1 par value, which represents 1370.99 % of the
capital stock of $612,710,079. Fractions of less than 1 will be settled in Pesos; or |
| (ii) | Cash option: Up to Ps. 8,400,169,246.50 at a ratio of $13.7098597435
for each Company share of Ps. 1 par value. |
Payments will be made in kind, except for those
shareholders who expressly elect to receive their dividend in cash in Argentine pesos. The final amounts of the nominal values or pesos
detailed in items (i) and (ii) above will depend on the exercise of the option of payment in pesos. For further information refer to
the relevant event on the Investor Relations’ website on the Financial information > CNV filings
section.
| · | As of September 20, 2023, it was notified in regards to installment
5 of dividend payments, that as of October 2, 2023 the Bank will proceed to make available and pay to its existing shareholders on the
Bank's share register, as of October 5, 2023 a dividend, by means of the delivery of: |
| (i) | Payment in Kind: Up to 8,254,072,169 par value of the National
Treasury Bill in Pesos Adjusted by CER at a discount due November 23, 2023 (ISIN ARARGE520DT9) Ticker X23N3 (CV code 9197) at a ratio
of par value 13.4714156856 of the above mentioned security for each Company share of Ps. 1 par value, which represents 1370.99 % of the
capital stock of Ps. 612,710,079. Fractions of less than 1 will be settled in Pesos; or |
| (ii) | Cash option: Up to Ps. 8,400,169,246.50 at a ratio of Ps. 13.7098597435
for each Company share of Ps. 1 par value. |
Payments will be made in kind, except for those
shareholders who expressly elect to receive their dividend in cash in Argentine pesos. The final amounts of the nominal values or pesos
detailed in items (i) and (ii) above will depend on the exercise of the option of payment in pesos. For further information refer to
the relevant event on the Investor Relations’ website on the Financial information > CNV filings
section.
| · | As
of September 26, 2023, the Board of Directors decided to appoint Mrs. Ana Karina Ortiz Cuéllar
as Chief Internal Audit Officer in replacement of Mr. Adolfo Rivera Guzmán as from
October 1st, 2023. In this sense, the Board of Directors decided to replace Mr.
Adolfo Rivera Guzmán by Mrs. Ana Karina Ortiz Cuéllar for the Audit Committee
CNV/BCRA. For further information click here. |
| · | As
of September 29, 2023, the Bank was notified of the Resolution N° 392 issued by the BCRA
dated September 28th 2023, which resolved to make no observations so that Mr. Carlos Eduardo
Elizalde may perform as Director of the Bank and Mr. Marcelino Agustín Cornejo and
Mrs. Magdalena Laudignon, may act as members of the Supervisory Committee of the Bank. For
further information click here. |
| · | As of October 17, 2023, it was notified in regards to installment
6 of dividend payments, that as of October 27, 2023 the Bank will proceed to make available and pay to its existing shareholders on the
Bank's share register, as of November 1, 2023 a dividend, by means of the delivery of: |
| (iii) | Payment in Kind: Up to 8,254,072,169 par value of the National
Treasury Bill in Pesos Adjusted by CER at a discount due November 23, 2023 (ISIN ARARGE520DT9) Ticker X23N3 (CV code 9197) at a ratio
of par value 13.4714156856 of the above mentioned security for each Company share of Ps. 1 par value, which represents 1370.99 % of the
capital stock of Ps. 612,710,079. Fractions of less than 1 will be settled in Pesos; or |
| (iv) | Cash option: Up to Ps. 8,400,169,246.50 at a ratio of Ps. 13.7098597435
for each Company share of Ps. 1 par value. |
Payments will be made in kind, except for those
shareholders who expressly elect to receive their dividend in cash in Argentine pesos. The final amounts of the nominal values or pesos
detailed in items (i) and (ii) above will depend on the exercise of the option of payment in pesos. For further information refer to
the relevant event on the Investor Relations’ website on the Financial information > CNV filings
section.
SMEs Productive investment financing
credit lines – September 2023
As
of September 30, 2023, total loans granted by the Ban complied with what was requested by the BCRA. The following table shows the evolution
of disbursements:
| Quota |
Minimum amount to be allocated (1) |
Simple average of daily balances (1) |
Disbursed amount (1) |
| Quota 2021/2022 |
32.447.048 |
43.434.402 |
62.449.414 |
| Quota 2022 |
42.867.291 |
63.022.460 |
98.200.990 |
| Quota 2022/2023 |
58.558.806 |
86.880.132 |
127.355.598 |
| Quota 2023 |
84.764.223 |
148.263.325 |
234.048.314 |
| Quota 2023/2024 |
(*) |
(*) |
(*) |
(*)As of the date of these financial statements, the term reported by Communication “B”
12413 has not expired.
(1) Numbers are expressed in nominal terms.
Main Regulatory Changes
Time deposit rate. LELIQ. Credit card rate. (Communication
“A” 7822, 08/14/2023). The BCRA increased 2,100 bps the 28-day LELIQ monetary policy rate to 118% APR (prev. 97%), increasing
by the same magnitude the minimum time deposit rate for deposits of up to $30 million. For the productive investment credit lines for
SMEs, rates will be 97% APR and 109% APR for working capital. Additionally, it increased the credit card financing rate for individuals
as of September 2023 to 107% (86% in June).
Exporting increment program – Reestablishment
(“Soy dollar 4”). (Decree 443/2023, 09/05/2023). Special regime until September 30, 2023 extended until October 25, 2023
by Decree 492/2023.
| o | 75% of exported amounts must be settled at official FX rate
and 25% is at free disposal. |
| o | Aimed at those who have exported soy manufactures and derivatives
in the last 18 months. |
| o | For its registration, USD-linked “Exporters with agricultural
activity especial accounts” must be used. They will be able to deposit in these accounts or subscribe LEDIVs for the net amount
that they receive for the liquidations settled as of September 21, 2023 (Communication “A” 7846). |
SMEs productive investment financing credit lines.
(Communication “A” 7848, 28/09/2023). As of October 1, 2023 until March 31, 2023, the new “2024 Quota” is
established. • Same requirements as “2023 Quota” • 7.5% of non-financial private sector deposits in pesos as of
September 2023, excluding deposits in especial accounts for agricultural activity clients.
Time deposit rate. LELIQ. Credit card rate. (Communication
“A” 7862, 10/12/2023). The BCRA increased the 28-day LELIQ monetary policy rate to 133% APR (prev. 118%), increasing by
the same magnitude the minimum time deposit rate for deposits of up to $30 million. For the productive investment credit lines for SMEs,
rates will be 112% APR (prev 97%) and 124% APR for working capital (prev 109%). Additionally, it increased the credit card financing rate
for individuals as of November 2023 to 122% (107% in September).
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.
ROA (quarterly): Net Income of the period attributable
to owners of the parent / Total Average Assets. Total Average Assets is calculated as the average between total assets on the previous
quarter-end and total assets in the current period, expressed in local currency. Calculated over a 365-day year.
ROE (accumulated): Accumulated net Income of
the period attributable to owners of the parent / Average Equity. Average Equity is calculated as the average between equity in December
of the previous year and equity in the current period, expressed in local currency. Calculated over a 365-day year.
ROE (quarterly): Net Income of the period attributable
to owners of the parent / Average Equity. Average Equity is calculated as the average between equity on the previous quarter end and equity
in the current period, expressed in local currency. Calculated over a 365-day year.
Spread: (Quarterly
Interest Income / Quarterly average Interest-earning Assets) – (Quarterly Interest Expenses / Quarterly average interest-bearing
liabilities).
Other terms
n.m.: not meaningful. Implies an increase above
500% and a decrease below -500%.
N/A: not applicable.
Bps: basis points.
Balance
Sheet
| BALANCE SHEET |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Assets |
|
|
|
|
|
| Cash and deposits in banks |
478,340 |
572,458 |
484,351 |
(16.4%) |
(1.2%) |
| Cash |
252,257 |
190,221 |
226,664 |
32.6% |
11.3% |
| Financial institutions and correspondents |
225,905 |
315,853 |
257,673 |
(28.5%) |
(12.3%) |
| BCRA |
207,670 |
303,723 |
229,589 |
(31.6%) |
(9.5%) |
| Other local and foreign financial institutions |
18,235 |
12,130 |
28,084 |
50.3% |
(35.1%) |
| Other |
178 |
66,384 |
14 |
|
|
| Debt securities at fair value through profit or loss |
107,448 |
108,162 |
48,962 |
(0.7%) |
119.5% |
| Derivatives |
12,903 |
4,395 |
4,854 |
193.6% |
165.8% |
| Repo transactions |
304,765 |
236,923 |
227,050 |
28.6% |
34.2% |
| Other financial assets |
87,029 |
122,252 |
60,174 |
(28.8%) |
44.6% |
| Loans and other financing |
1,352,641 |
1,418,441 |
1,362,632 |
(4.6%) |
(0.7%) |
| Non-financial public sector |
56 |
5 |
6 |
n.m |
n.m |
| B.C.R.A |
- |
- |
7 |
N/A |
(100.0%) |
| Other financial institutions |
4,530 |
9,547 |
11,132 |
(52.6%) |
(59.3%) |
| Non-financial private sector and residents abroad |
1,348,055 |
1,408,889 |
1,351,487 |
(4.3%) |
(0.3%) |
| Other debt securities |
1,103,657 |
1,370,527 |
1,237,042 |
(19.5%) |
(10.8%) |
| Financial assets pledged as collateral |
144,839 |
107,216 |
110,740 |
35.1% |
30.8% |
| Current income tax assets |
122 |
108 |
414 |
13.0% |
(70.5%) |
| Investments in equity instruments |
2,974 |
3,133 |
1,835 |
(5.1%) |
62.1% |
| Investments in subsidiaries and associates |
7,475 |
7,458 |
7,350 |
0.2% |
1.7% |
| Property and equipment |
192,382 |
192,449 |
193,033 |
(0.0%) |
(0.3%) |
| Intangible assets |
20,644 |
19,873 |
17,829 |
3.9% |
15.8% |
| Deferred income tax assets |
2,272 |
2,529 |
2,964 |
(10.2%) |
(23.3%) |
| Other non-financial assets |
63,957 |
57,892 |
56,074 |
10.5% |
14.1% |
| Non-current assets held for sale |
539 |
539 |
482 |
- |
11.8% |
| Total Assets |
3,881,987 |
4,224,355 |
3,815,786 |
(8.1%) |
1.7% |
| Liabilities |
|
|
|
|
|
| Deposits |
2,593,867 |
2,709,531 |
2,534,570 |
(4.3%) |
2.3% |
| Non-financial public sector |
20,859 |
14,837 |
22,095 |
40.6% |
(5.6%) |
| Financial sector |
1,287 |
2,550 |
1,512 |
(49.5%) |
(14.9%) |
| Non-financial private sector and residents abroad |
2,571,721 |
2,692,144 |
2,510,963 |
(4.5%) |
2.4% |
| Liabilities at fair value through profit or loss |
87 |
- |
- |
N/A |
N/A |
| Derivatives |
2,325 |
636 |
1,321 |
265.6% |
76.0% |
| Other financial liabilities |
210,354 |
375,562 |
256,471 |
(44.0%) |
(18.0%) |
| Financing received from the B.C.R.A. and other financial institutions |
23,483 |
37,361 |
35,268 |
(37.1%) |
(33.4%) |
| Corporate bonds issued |
- |
- |
749 |
N/A |
(100.0%) |
| Current income tax liabilities |
21,516 |
36,996 |
1,129 |
(41.8%) |
n.m |
| Provisions |
10,697 |
15,807 |
16,805 |
(32.3%) |
(36.3%) |
| Deferred income tax liabilities |
27,555 |
19,341 |
17,208 |
42.5% |
60.1% |
| Other non-financial liabilities |
227,501 |
264,663 |
232,736 |
(14.0%) |
(2.2%) |
| Total Liabilities |
3,117,385 |
3,459,897 |
3,096,257 |
(9.9%) |
0.7% |
| Equity |
|
|
|
|
|
| Share Capital |
613 |
613 |
613 |
- |
- |
| Non-capitalized contributions |
6,745 |
6,745 |
6,745 |
- |
- |
| Capital adjustments |
265,252 |
265,252 |
265,252 |
- |
- |
| Reserves |
424,136 |
424,136 |
355,436 |
- |
19.3% |
| Retained earnings |
- |
- |
22 |
N/A |
(100.0%) |
| Other accumulated comprehensive income |
(18,977) |
(9,263) |
(4,260) |
(104.9%) |
(345.5%) |
| Income for the period |
75,236 |
65,605 |
84,262 |
14.7% |
(10.7%) |
| Equity attributable to owners of the Parent |
753,005 |
753,088 |
708,070 |
(0.0%) |
6.3% |
| Equity attributable to non-controlling interests |
11,597 |
11,370 |
11,459 |
2.0% |
1.2% |
| Total Equity |
764,602 |
764,458 |
719,529 |
0.0% |
6.3% |
| Total Liabilities and Equity |
3,881,987 |
4,224,355 |
3,815,786 |
(8.1%) |
1.7% |
Balance Sheet – Five quarters
| BALANCE SHEET |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
|
|
| |
3Q23 |
2Q23 |
1Q23 |
4Q22 |
3Q22 |
| Assets |
|
|
|
|
|
| Cash and deposits in banks |
478,340 |
572,458 |
624,341 |
601,918 |
484,351 |
| Cash |
252,257 |
190,221 |
200,355 |
238,612 |
226,664 |
| Financial institutions and correspondents |
225,905 |
315,853 |
423,739 |
363,123 |
257,673 |
| B.C.R.A |
207,670 |
303,723 |
408,041 |
327,903 |
229,589 |
| Other local and foreign financial institutions |
18,235 |
12,130 |
15,698 |
35,220 |
28,084 |
| Other |
178 |
66,384 |
247 |
183 |
14 |
| Debt securities at fair value through profit or loss |
107,448 |
108,162 |
47,256 |
51,844 |
48,962 |
| Derivatives |
12,903 |
4,395 |
1,879 |
4,608 |
4,854 |
| Repo transactions |
304,765 |
236,923 |
235,625 |
106,785 |
227,050 |
| Other financial assets |
87,029 |
122,252 |
64,847 |
66,517 |
60,174 |
| Loans and other financing |
1,352,641 |
1,418,441 |
1,424,957 |
1,456,782 |
1,362,632 |
| Non-financial public sector |
56 |
5 |
5 |
3 |
6 |
| B.C.R.A |
- |
- |
- |
18 |
7 |
| Other financial institutions |
4,530 |
9,547 |
8,812 |
8,597 |
11,132 |
| Non-financial private sector and residents abroad |
1,348,055 |
1,408,889 |
1,416,140 |
1,448,164 |
1,351,487 |
| Other debt securities |
1,103,657 |
1,370,527 |
1,165,073 |
1,310,527 |
1,237,042 |
| Financial assets pledged as collateral |
144,839 |
107,216 |
88,656 |
93,845 |
110,740 |
| Current income tax assets |
122 |
108 |
128 |
79 |
414 |
| Investments in equity instruments |
2,974 |
3,133 |
2,027 |
1,906 |
1,835 |
| Investments in subsidiaries and associates |
7,475 |
7,458 |
7,655 |
7,044 |
7,350 |
| Property and equipment |
192,382 |
192,449 |
193,845 |
195,236 |
193,033 |
| Intangible assets |
20,644 |
19,873 |
19,433 |
19,538 |
17,829 |
| Deferred income tax assets |
2,272 |
2,529 |
2,567 |
3,088 |
2,964 |
| Other non-financial assets |
63,957 |
57,892 |
59,322 |
59,203 |
56,074 |
| Non-current assets held for sale |
539 |
539 |
539 |
457 |
482 |
| Total Assets |
3,881,987 |
4,224,355 |
3,938,150 |
3,979,377 |
3,815,786 |
| Liabilities |
|
|
|
|
|
| Deposits |
2,593,867 |
2,709,531 |
2,623,168 |
2,669,026 |
2,534,570 |
| Non-financial public sector |
20,859 |
14,837 |
20,090 |
19,665 |
22,095 |
| Financial sector |
1,287 |
2,550 |
1,718 |
691 |
1,512 |
| Non-financial private sector and residents abroad |
2,571,721 |
2,692,144 |
2,601,360 |
2,648,670 |
2,510,963 |
| Liabilities at fair value through profit or loss |
87 |
- |
- |
- |
- |
| Derivatives |
2,325 |
636 |
869 |
679 |
1,321 |
| Other financial liabilities |
210,354 |
375,562 |
221,471 |
240,595 |
256,471 |
| Financing received from the B.C.R.A. and other financial institutions |
23,483 |
37,361 |
30,800 |
40,372 |
35,268 |
| Corporate bonds issued |
- |
- |
- |
388 |
749 |
| Current income tax liabilities |
21,516 |
36,996 |
26,656 |
14,724 |
1,129 |
| Provisions |
10,697 |
15,807 |
16,528 |
17,612 |
16,805 |
| Deferred income tax liabilities |
27,555 |
19,341 |
9,464 |
13,594 |
17,208 |
| Other non-financial liabilities |
227,501 |
264,663 |
241,911 |
239,094 |
232,736 |
| Total Liabilities |
3,117,385 |
3,459,897 |
3,170,867 |
3,236,084 |
3,096,257 |
| Equity |
|
|
|
|
|
| Share Capital |
613 |
613 |
613 |
613 |
613 |
| Non-capitalized contributions |
6,745 |
6,745 |
6,745 |
6,745 |
6,745 |
| Capital adjustments |
265,252 |
265,252 |
265,252 |
265,252 |
265,252 |
| Reserves |
424,136 |
424,136 |
355,436 |
355,436 |
355,436 |
| Retained earnings |
- |
- |
119,505 |
22 |
22 |
| Other accumulated comprehensive income |
(18,977) |
(9,263) |
(16,310) |
(15,234) |
(4,260) |
| Income for the period |
75,236 |
65,605 |
25,081 |
119,483 |
84,262 |
| Equity attributable to owners of the Parent |
753,005 |
753,088 |
756,322 |
732,317 |
708,070 |
| Equity attributable to non-controlling interests |
11,597 |
11,370 |
10,961 |
10,976 |
11,459 |
| Total Equity |
764,602 |
764,458 |
767,283 |
743,293 |
719,529 |
| Total Liabilities and Equity |
3,881,987 |
4,224,355 |
3,938,150 |
3,979,377 |
3,815,786 |
Balance Sheet – Foreign Currency Exposure
| FOREIGN CURRENCY EXPOSURE |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Assets |
|
|
|
|
|
| Cash and deposits in banks |
439,855 |
508,045 |
432,492 |
(13.4%) |
1.7% |
| Debt securities at fair value through profit or loss |
79,522 |
7 |
2,559 |
n.m |
n.m |
| Other financial assets |
16,552 |
15,976 |
16,549 |
3.6% |
0.0% |
| Loans and other financing |
82,527 |
80,387 |
77,513 |
2.7% |
6.5% |
| Other financial institutions |
2 |
7 |
2 |
(71.4%) |
- |
| Non-financial private sector and residents abroad |
82,524 |
80,378 |
77,508 |
2.7% |
6.5% |
| Other debt securities |
16,761 |
48,626 |
19,744 |
(65.5%) |
(15.1%) |
| Financial assets pledged as collateral |
8,939 |
8,863 |
22,241 |
0.9% |
(59.8%) |
| Investments in equity instruments |
162 |
166 |
98 |
(2.4%) |
65.3% |
| Total foreign currency assets |
644,318 |
662,070 |
571,196 |
(2.7%) |
12.8% |
| Liabilities |
|
|
|
|
|
| Deposits |
518,978 |
507,474 |
502,054 |
2.3% |
3.4% |
| Non-Financial Public Sector |
16,024 |
9,548 |
12,283 |
67.8% |
30.5% |
| Financial Sector |
284 |
276 |
138 |
2.9% |
105.8% |
| Non-financial private sector and residents abroad |
502,670 |
497,650 |
489,632 |
1.0% |
2.7% |
| Other financial liabilities |
29,243 |
102,029 |
41,721 |
(71.3%) |
(29.9%) |
| Financing received from the B.C.R.A. and other financial institutions |
2,544 |
3,717 |
1,554 |
(31.6%) |
63.7% |
| Other non financial liabilities |
22,368 |
18,685 |
19,577 |
19.7% |
14.3% |
| Total foreign currency liabilities |
573,133 |
631,905 |
564,906 |
(9.3%) |
1.5% |
| |
0 |
0 |
0 |
|
|
| Foreign Currency Net Position - AR$ |
71,185 |
30,165 |
6,290 |
136.0% |
n.m |
| |
|
|
|
|
|
| Foreign Currency Net Position - USD |
203 |
118 |
43 |
73.1% |
376.3% |
| *Wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500, as of the end of period. |
|
|
|
Income Statement
| INCOME STATEMENT |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
∆ % |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Interest income |
586,891 |
500,488 |
343,875 |
17.3% |
70.7% |
| Interest expense |
(316,656) |
(250,387) |
(161,384) |
(26.5%) |
(96.2%) |
| Net interest income |
270,235 |
250,101 |
182,491 |
8.1% |
48.1% |
| Fee income |
39,521 |
44,971 |
39,351 |
(12.1%) |
0.4% |
| Fee expenses |
(21,898) |
(12,967) |
(17,621) |
(68.9%) |
(24.3%) |
| Net fee income |
17,623 |
32,004 |
21,730 |
(44.9%) |
(18.9%) |
| Net income from financial instruments at fair value through P&L |
8,171 |
9,996 |
8,940 |
(18.3%) |
(8.6%) |
| Net loss from write-down of assets at amortized cost and fair value through OCI |
4,068 |
3,088 |
243 |
31.7% |
n.m |
| Foreign exchange and gold gains |
2,140 |
4,357 |
5,300 |
(50.9%) |
(59.6%) |
| Other operating income |
9,991 |
9,457 |
10,722 |
5.6% |
(6.8%) |
| Loan loss allowances |
(7,718) |
(14,962) |
(9,774) |
48.4% |
21.0% |
| Net operating income |
304,510 |
294,041 |
219,652 |
3.6% |
38.6% |
| Personnel benefits |
(42,416) |
(39,110) |
(33,026) |
(8.5%) |
(28.4%) |
| Administrative expenses |
(47,345) |
(42,005) |
(34,999) |
(12.7%) |
(35.3%) |
| Depreciation and amortization |
(4,370) |
(4,709) |
(4,909) |
7.2% |
11.0% |
| Other operating expenses |
(43,074) |
(39,225) |
(31,334) |
(9.8%) |
(37.5%) |
| Operating expenses |
(137,205) |
(125,049) |
(104,268) |
(9.7%) |
(31.6%) |
| Operating income |
167,305 |
168,992 |
115,384 |
(1.0%) |
45.0% |
| Income from associates and joint ventures |
18 |
799 |
(912) |
(97.7%) |
102.0% |
| Income from net monetary position |
(152,072) |
(104,474) |
(84,309) |
(45.6%) |
(80.4%) |
| Income before income tax |
15,251 |
65,317 |
30,163 |
(76.7%) |
(49.4%) |
| Income tax |
(5,366) |
(24,383) |
(7,137) |
78.0% |
24.8% |
| Income for the period |
9,885 |
40,934 |
23,026 |
(75.9%) |
(57.1%) |
| Owners of the parent |
9,631 |
40,525 |
23,444 |
(76.2%) |
(58.9%) |
| Non-controlling interests |
254 |
409 |
(418) |
(37.9%) |
160.8% |
| |
|
|
|
|
|
| Other comprehensive Income (1) |
(9,742) |
7,046 |
16,514 |
(238.3%) |
(159.0%) |
| Total comprehensive income |
143 |
47,980 |
39,540 |
(99.7%) |
(99.6%) |
Income Statement – 5 quarters
| INCOME STATEMENT |
BBVA ARGENTINA CONSOLIDATED |
| In millions of AR$ - Inflation adjusted |
|
|
|
|
|
| |
3Q23 |
2Q23 |
1Q23 |
4Q22 |
3Q22 |
| Interest income |
586,891 |
500,488 |
415,870 |
409,789 |
343,875 |
| Interest expense |
(316,656) |
(250,387) |
(196,938) |
(194,304) |
(161,384) |
| Net interest income |
270,235 |
250,101 |
218,932 |
215,485 |
182,491 |
| Fee income |
39,521 |
44,971 |
36,678 |
40,175 |
39,351 |
| Fee expenses |
(21,898) |
(12,967) |
(17,775) |
(19,522) |
(17,621) |
| Net fee income |
17,623 |
32,004 |
18,903 |
20,653 |
21,730 |
| Net income from financial instruments at fair value through P&L |
8,171 |
9,996 |
11,645 |
10,153 |
8,940 |
| Net loss from write-down of assets at amortized cost and fair value through OCI |
4,068 |
3,088 |
64 |
(1,185) |
243 |
| Foreign exchange and gold gains |
2,140 |
4,357 |
1,760 |
747 |
5,300 |
| Other operating income |
9,991 |
9,457 |
9,165 |
11,124 |
10,722 |
| Loan loss allowances |
(7,718) |
(14,962) |
(13,647) |
(14,927) |
(9,774) |
| Net operating income |
304,510 |
294,041 |
246,822 |
242,050 |
219,652 |
| Personnel benefits |
(42,416) |
(39,110) |
(36,802) |
(37,233) |
(33,026) |
| Administrative expenses |
(47,345) |
(42,005) |
(40,018) |
(35,358) |
(34,999) |
| Depreciation and amortization |
(4,370) |
(4,709) |
(4,707) |
(6,806) |
(4,909) |
| Other operating expenses |
(43,074) |
(39,225) |
(33,863) |
(37,335) |
(31,334) |
| Operating expenses |
(137,205) |
(125,049) |
(115,390) |
(116,732) |
(104,268) |
| Operating income |
167,305 |
168,992 |
131,432 |
125,318 |
115,384 |
| Income from associates and joint ventures |
18 |
799 |
(100) |
242 |
(912) |
| Income from net monetary position |
(152,072) |
(104,474) |
(94,783) |
(74,230) |
(84,309) |
| Income before income tax |
15,251 |
65,317 |
36,549 |
51,330 |
30,163 |
| Income tax |
(5,366) |
(24,383) |
(11,484) |
(16,593) |
(7,137) |
| Income for the period |
9,885 |
40,934 |
25,065 |
34,737 |
23,026 |
| Owners of the parent |
9,631 |
40,525 |
25,081 |
35,221 |
23,444 |
| Non-controlling interests |
254 |
409 |
(16) |
(484) |
(418) |
| |
|
|
|
|
|
| Other comprehensive Income (OCI)(1) |
(9,742) |
7,046 |
(1,075) |
(10,974) |
16,514 |
| Total comprehensive income |
143 |
47,980 |
23,990 |
23,763 |
39,540 |
| (1) Net of Income Tax. |
|
|
|
|
|
Ratios
| QUARTERLY ANNUALIZED RATIOS |
BBVA ARGENTINA CONSOLIDATED |
| In % |
|
|
|
∆ bps |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Profitability |
|
|
|
|
|
| Efficiency Ratio |
82.4% |
52.0% |
64.8% |
3,039 bps |
1,760 bps |
| ROA |
0.9% |
4.0% |
2.4% |
(304)bps |
(141)bps |
| ROE |
5.1% |
21.5% |
13.5% |
(1,646)bps |
(844)bps |
| Liquidity |
|
|
|
|
|
| Liquid assets / Total Deposits |
76.6% |
84.1% |
78.5% |
(750)bps |
(184)bps |
| Capital |
|
|
|
|
|
| Regulatory Capital Ratio |
27.13% |
28.38% |
26.25% |
(125)bps |
88 bps |
| TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) |
27.13% |
27.99% |
26.04% |
(86)bps |
108 bps |
| Asset Quality |
|
|
|
|
|
| Total non-performing portfolio / Total portfolio |
1.42% |
1.38% |
1.07% |
4 bps |
35 bps |
| Allowances /Total non-performing portfolio |
186.42% |
218.44% |
236.86% |
(3,202)bps |
(5,044)bps |
| Cost of Risk |
2.14% |
4.09% |
2.65% |
(195)bps |
(51)bps |
| ACCUMULATED ANNUALIZED RATIOS |
BBVA ARGENTINA CONSOLIDATED |
| In % |
|
|
|
∆ bps |
| |
3Q23 |
2Q23 |
3Q22 |
QoQ |
YoY |
| Profitability |
|
|
|
|
|
| Efficiency Ratio |
63.8% |
56.6% |
69.0% |
719 bps |
(519)bps |
| ROA |
2.6% |
3.2% |
2.9% |
(67)bps |
(30)bps |
| ROE |
13.5% |
17.8% |
16.8% |
(427)bps |
(328)bps |
| Liquidity |
|
|
|
|
|
| Liquid assets / Total Deposits |
76.6% |
84.1% |
78.5% |
(750)bps |
(184)bps |
| Capital |
|
|
|
|
|
| Regulatory Capital Ratio |
27.1% |
28.4% |
26.2% |
(125)bps |
88 bps |
| TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) |
27.1% |
28.0% |
26.0% |
(86)bps |
108 bps |
| Asset Quality |
|
|
|
|
|
| Total non-performing portfolio / Total portfolio |
1.42% |
1.38% |
1.07% |
4 bps |
35 bps |
| Allowances /Total non-performing portfolio |
186.42% |
218.44% |
236.86% |
(3,202)bps |
(5,044)bps |
| Cost of Risk |
3.40% |
3.93% |
2.25% |
(53)bps |
115 bps |
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
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: |
November 21, 2023 |
|
By: |
/s/ Carmen Morillo Arroyo |
| |
|
|
|
Name: |
Carmen Morillo Arroyo |
| |
|
|
|
Title: |
Chief Financial Officer |
Banco BBVA Argentina (NYSE:BBAR)
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