6-K 1 bbarpr2q22_6k.htm FORM 6-K
 

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

 

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

of the Securities Exchange Act of 1934

 

 

For the month of May 2022

 

Commission File Number: 001-12568

 

 

BBVA Argentina Bank S.A.

(Translation of registrant’s name into English)

 

111 Córdoba Av, C1054AAA

Buenos Aires, Argentina

(Address of principal executive offices)

 

 

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

 

Form 20-F

X

   Form 40-F
 

 

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

 

Yes
 
   No

X

 

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

 

Yes
 
   No

X

 

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

 

Yes
 
   No

X

 

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

 
 
 

 

 

Banco BBVA Argentina S.A.

 

 

TABLE OF CONTENTS

 

 

Item

  
   
1. Banco BBVA Argentina S.A. reports consolidated second quarter earnings for fiscal year 2022.
   
   

 
 

 

 

 

 
 

 

 

 
 

 

 

 
 

 

 

 
 
 

Banco BBVA Argentina S.A. announces Second Quarter 2022 results

Buenos Aires, August 23, 2022 – Banco BBVA Argentina S.A (NYSE; BYMA; MAE: BBAR; LATIBEX: XBBAR) (“BBVA Argentina” or “BBVA” or “the Bank”) announced today its consolidated results for the second quarter (2Q22), ended on June 30, 2022.

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 2021 and 2022 have been updated according to IAS 29 reporting to reflect the accumulated effect of inflation adjustment for each period up to June 30, 2022.

2Q22 Highlights

·BBVA Argentina’s inflation adjusted net income in 2Q22 was $15.9 billion, 235.8% higher than the $4.7 billion reported on the first quarter of 2022 (1Q22), and 34.2% higher than the $11.8 billion reported on the second quarter of 2021 (2Q21). In the first six months of 2022, the accumulated net income was $20.6 billion, 19.6% above the $17.2 billion recorded in the first six months of 2021.
·In 2Q22, BBVA Argentina posted an inflation adjusted average return on assets (ROAA) of 4.6% and an inflation adjusted average return on equity (ROAE) of 28.3%. The six month accumulated ROAA reached 3.0% while the six month accumulated ROAE was 18.9%.
·Operating income in 2Q22 was $32.0 billion, 10.2% above the $29.0 billion recorded in 1Q22 and 51.9% over the $21.1 billion recorded in 2Q21.
·In terms of activity, total consolidated financing to the private sector in 2Q22 totaled $519.3 billion, increasing 7.1% in real terms compared to 1Q22, and falling 1.0% compared to 2Q21. In the quarter, the increase was mainly driven by growth in credit cards, other loans, prefinancing and financing of exports and in overdrafts by 5.3%, 10.7%, 41.5% and 21.2% respectively. BBVA’s consolidated market share of private sector loans reached 8.35% as of 2Q22.
·Total consolidated deposits in 2Q22 totaled $974.1 billion, increasing 4.2% in real terms during the quarter, and falling 2.5% in the year. Quarterly increase was mainly explained by sight deposits, which grew 4.4%. The Bank’s consolidated market share of private deposits reached 7.15% as of 2Q22.
·As of 2Q22, the non-performing loan ratio (NPL) reached 1.08%, with a 219.39% coverage ratio.
·The accumulated efficiency ratio in 2Q22 was 71.3%, below 1Q22’s 72.2%, and 2Q21’s 70.1%.
·As of 2Q22, BBVA Argentina reached a regulatory capital ratio of 22.9%, entailing a $124.7 billion or 180.1% excess over minimum regulatory requirement. Tier I ratio was 22.7%.
·Total liquid assets represented 76.9% of the Bank’s total deposits as of 2Q22.

Message from the CFO

“In a less favourable global context, facing the difficulties of correcting macroeconomic distortions and meeting the established objectives in the loan agreement reached in March 2022 with the International Monetary Fund, market volatility has significantly increased, especially in the FX markets and local currency debt markets. A high uncertainty persists about the future development of economic policy. According to BBVA Research, inflation, which reached 46.2% accumulated as of July 2022, will probably be higher in the future, and GDP will grow around 2.5% in 2022 (below previous estimates of 3.5%). 

   
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Regarding 2Q22, inflation rate reached 17.3%, versus 16.1% in 1Q22. During 2Q22, private loans in pesos of the system grew 19%, while that of BBVA Argentina increased 23%1, achieving a positive real growth and, in total currency, growing 46 bps its consolidated market share.

Concerning BBVA Argentina’s quarterly performance, outstanding behavior in net interest income and fee income definitely contributed to an improvement of 10.2% in operating income.

As of June 2022, BBVA Argentina reached an NPL ratio of 1.08%, very well below the last available system NPL (May 2022) of 3.4%. Concerning liquidity and solvency indicators, the Bank ends the quarter with 76.7% and 22.9% 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 dividends by $8.8 billion (instalments 1 to 8) according to the established schedule published on June 16, 2022.

With respect to digitalization, our service offering has evolved in such way that by the end of June 2022, digital client penetration reached 62% keeping stable versus a year back, while that of mobile clients reached 54% from 52% in the same period. The response on the side of customers has been satisfactory, and we are convinced this is the path to pursue, in the aim of sustaining and expanding our competitive position in the financial system. In the quarter, new client acquisition through digital channels over traditional ones was 66%, while in 2Q21 it was 70%.

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.”

Ernesto R. Gallardo, CFO at BBVA Argentina

2Q22 Conference Call

Tuesday, August 24 - 12:00 p.m. Buenos Aires time (11:00 a.m. EST)

To participate please dial-in:

+ 54-11-3984-5677 (Argentina)

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

+ 1-412-317-6373 (International)

Web Phone: click here

Código de la conferencia: BBVA

Webcast & Replay: click here

 

 

1 Source: BCRA siscen base information as of June 30, 2022. Capital balances as of the last day of each period, in nominal terms.

   
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Safe Harbor Statement

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

Information

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

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 2021 and 2022 have been updated according to IAS 29 reporting to reflect the accumulated effect of inflation adjustment for each period up to June 30, 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., Openpay Argentina S.A. and Interbanking S.A.

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

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

   
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Quarterly Results

INCOME STATEMENT BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
Net Interest Income  54,310  46,016  39,858   18.0%   36.3%
Net Fee Income  10,306 7,783 8,902   32.4%   15.8%
Net income from measurement of financial instruments at fair value through P&L 1,343 4,793 2,054 (72.0%) (34.6%)
Net income from write-down of assets at amortized cost and at fair value through OCI 567  (40)  (27)  n.m   n.m 
Foreign exchange and gold gains 1,557 2,007 1,937 (22.4%) (19.6%)
Other operating income 3,317 3,958 2,971 (16.2%)   11.6%
Loan loss allowances   (2,455)   (2,661)   (3,486)  7.7%   29.6%
Net operating income  68,945  61,856  52,209   11.5%   32.1%
Personnel benefits (12,707) (10,633) (10,428) (19.5%) (21.9%)
Adminsitrative expenses (12,260) (11,161)   (9,639)   (9.8%) (27.2%)
Depreciation and amortization   (1,721)   (1,918)   (1,948)   10.3%   11.7%
Other operating expenses (10,254)   (9,097)   (9,123) (12.7%) (12.4%)
Operarting expenses (36,942) (32,809) (31,138) (12.6%) (18.6%)
Operating income  32,003  29,047  21,071   10.2%   51.9%
Income from associates 218   (313) 285 169.6% (23.5%)
Income from net monetary position (23,788) (21,970) (14,322)   (8.3%) (66.1%)
Net income before income tax  8,433 6,764 7,034   24.7%   19.9%
Income tax 7,455   (2,033) 4,806 466.7%   55.1%
Net income for the period  15,888 4,731  11,840 235.8%   34.2%
Owners of the parent  16,014 4,911  11,838 226.1%   35.3%
Non-controlling interests   (126)   (180)  2   30.0%  n.m 
           
Other comprehensive Income (OCI) (1)   (9,650) 1,554 169  n.m   n.m 
Total comprehensive income 6,238 6,285  12,009   (0.7%) (48.1%)
           
(1) Net of Income Tax.

BBVA Argentina 2Q22 net income was $15.8 billion, increasing 235.8% or $11.2 billion quarter-over-quarter (QoQ) and 34.2% or $4.0 million year-over-year (YoY). This implied a quarterly ROAE of 28.3% and a quarterly ROAA of 4.6%.

Quarterly operating results are mainly explained by (i) greater interest income and (ii) a better net fee income (iii) lower operating expenses. This allowed net operating income to increase above operating expenses.

These effects were partially offset by a fall in net income from measurement of financial instruments at FV through P&L, which includes the sale of the remaining participation of the Bank in Prisma in 1Q22.

Net income for the period was improved by a benefit in the income tax line, as a result of the implications of tax deferrals.

   
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EARNINGS PER SHARE BBVA ARGENTINA CONSOLIDATED
        ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
Financial Statement information          
Net income for the period attributable to owners of the parent (in AR$ millions, inflation adjusted) 16,014   4,911 11,838  226.1% 35.3%
Total shares outstanding (1)  612,710  612,710  612,710 - -
Market information          
Closing price of ordinary share at BYMA (in AR$)   201.0   225.0   184.4  (10.7%)   9.0%
Closing price of ADS at NYSE (in USD) 2.4 3.5 3.3  (32.5%)  (26.5%)
Book value per share (in AR$)  381.84  371.70  355.69 2.7% 7.4%
Price-to-book ratio (BYMA price) (%) 0.53 0.61 0.52   (13.0%) 1.6%
Earnings per share (in AR$) 26.14 8.02 19.32  226.1%  35.3%
Earnings per ADS(2) (in AR$) 78.41 24.05 57.96  226.1%  35.3%
           
(1) In thousands of shares.
(2) Each ADS accounts for 3 ordinary shares
   
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Net Interest Income

NET INTEREST INCOME BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
Net Interest Income  54,310  46,016  39,858  18.0%  36.3%
Interest Income  99,622  80,961  71,610  23.0%  39.1%
From government securities 41,868 28,369 18,062 47.6%  131.8%
From private securities   123   112  44   9.8%  179.5%
Interest from loans and other financing 34,887 31,861 29,195   9.5% 19.5%
Financial Sector   504   417   220 20.9%  129.1%
Overdrafts   4,147   2,791   2,546 48.6% 62.9%
Discounted Instruments   5,449   5,326   4,737   2.3% 15.0%
Mortgage loans   441   495   613  (10.9%)  (28.1%)
Pledge loans   1,838   1,735   1,901   5.9% (3.3%)
Consumer Loans   5,365   5,160   4,884   4.0%   9.8%
Credit Cards   9,503   9,459   7,570   0.5% 25.5%
Financial leases   260   301   322  (13.6%)  (19.3%)
Loans for the prefinancing and financing of exports   134   151   397  (11.3%)  (66.2%)
Other loans   7,246   6,026   6,005 20.2% 20.7%
Premiums on reverse REPO transactions   1,176   8,692 11,929  (86.5%)  (90.1%)
CER/UVA clause adjustment 21,468 11,825 12,380 81.5% 73.4%
Other interest income   100   102  - (2.0%)  N/A 
Interest expenses  45,312  34,945  31,752  29.7%  42.7%
Deposits 39,030 31,805 28,381 22.7% 37.5%
Checking accounts   7,361   6,107   4,707 20.5% 56.4%
Savings accounts   288   184   196 56.5% 46.9%
Time deposits and Investment accounts 31,381 25,514 23,478 23.0% 33.7%
Other liabilities from financial transactions   117   121   373 (3.3%)  (68.6%)
Interfinancial loans received   1,504   1,032   1,020 45.7% 47.5%
Premiums on REPO transactions  - 2  -   (100.0%)  N/A 
CER/UVA clause adjustment   4,660   1,985   1,973  134.8%  136.2%
Other interest expense 1  - 5  N/A   (80.0%)

Net interest income for 2Q22 was $54.3 billion, increasing 18.0% or $8.9 billion QoQ, and 36.3% or $14.5 billion YoY. In 2Q22, interest income, in monetary terms, increased more than interest expense, mainly due to (i) higher income from government securities, (ii) increases in income from CER/UVA clause adjustments and (iii) an increase in income from interests from overdrafts and oher loans. Items (i) and (ii) take place in a context of increasing interest rates, derived from sequential increases in the monetary policy rate by the BCRA2, as well as an increase in the inflation rate3, and justified by a change in regulation issued at the beginning of 2022 (Com. “A” 7432) which allowed financial institutions to increase their BCRA liquidity bills (LELIQ) position.

In 2Q22, interest income totaled $99.6 billion, increasing 23.0% compared to 1Q22 and 39.1% compared to 2Q21. Quarterly increase is mainly driven by (i) higher income from government securities, both from an increase in the nominal rate and the volume in the position of LELIQ; and (ii) an increase in CER/UVA clause adjustments, especially from government securities linked to such indexes, which position has increased during the quarter. Income from overdrafts and other loans also stand out, mainly because of the adjustment of increasing rates and an increase in activity. All this was offset by lower income on premiums on reverse REPO transactions (seven-day REPOs), considering such instruments were gradually removed from the market by the Central Bank.

2 For further details on the gradual increase in interest rates refer to the Main Regulatory Changes section.

3 From 16.1% in 1Q22 to 17.3% in 2Q22. Source: Instituto Nacional de Estadística y Censos (INDEC).

   
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Income from government securities increased 47.6% compared to 1Q22, and 131.8% compared to 2Q21. This is partially due to the higher position in LELIQ, continuing with the progressive swap from REPOs towards these securities, added to the gradual increase of the monetary policy rate, which was at 44.5% (nominal annual terms) at the beginning of the quarter and ended at 52.0%. 93% of these results are explained by government securities at fair value through OCI, of which 73% are BCRA securities, and 4% are securities at amortized cost (2022 and 2027 National Treasury Bonds at fixed rate, used for reserve requirement integration).

Interest income from loans and other financing totaled $34.9 billion, increasing 9.5% QoQ and 19.5% YoY. Quarterly growth is mainly due to an increase in overdrafts by 20.9% and in other loans by 20.2%, the latter boosted by floorplan loans from consolidated companies.

Income from CER/UVA adjustments increased 81.5% QoQ and 73.4% YoY. Quarterly growth was driven by a higher yield and a greater position in CER-linked securities, taking into consideration that quarterly inflation reached 17.3% versus 16.1% the previous quarter. 73% of income from interests from CER/UVA clause adjustments is explained by interests generated by bonds linked to such indexes.

Interest expenses totaled $45.3 billion, denoting a 29.7% increase QoQ and a 42.7% increase YoY. Quarterly increase is described by higher time deposit and checking account expenses, together with higher CER/UVA adjustment expenses.

Interests from time deposits (including investment accounts) explain 69.3% of interest expenses, versus 73.0% the previous quarter. These increased 23.0% QoQ and 33.7% YoY.

   
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NIM

As of 2Q22, net interest margin (NIM) was 22.1%, above the 19.2% reported in 1Q22. In 2Q22, NIM in pesos was 23.2% and 2.1% in U.S. dollars.

ASSETS & LIABILITIES PERFORMANCE - TOTAL BBVA ARGENTINA CONSOLIDATED
In millions of AR$. Rates and spreads in annualized %
  2Q22 1Q22 2Q21
  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  987,483 99,620 40.5%   969,983 80,962 33.9%   915,495 71,610 31.4%
Debt securities 495,815   58,737 47.5%  480,489   44,897 37.9%  393,537   36,748 37.5%
Loans to customers/financial institutions 477,860   40,881 34.3%  476,521   36,061 30.7%  508,082   34,843 27.5%
Loans to the BCRA   1   2 802.2%  -   2 -  - - -
Other assets   13,807 - 0.0% 12,974   1 0.0% 13,876 18 0.5%
Total non interest-earning assets  359,460 - 0.0%   381,616 - 0.0%   403,713 - 0.0%
Total Assets  1,346,943 99,620 29.7%  1,351,599 80,962 24.3%  1,319,208 71,610 21.8%
Total interest-bearing liabilities  702,824 45,310 25.9%   704,854 34,945 20.1%   700,202 31,752 18.2%
Sight deposits 258,881  288 0.4%  283,069  184 0.3%  367,642  4,901 5.3%
Time deposits and investment accounts 334,140   36,040 43.3%  316,579   27,498 35.2%  315,560   26,113 33.2%
Debt securities issued  253 84 133.2%   433 75 70.3%   1,605  174 43.4%
Other liabilities 109,550  8,898 32.6%  104,773  7,188 27.8% 15,395  564 14.7%
Total non-interest-bearing liabilities  644,118 - 0.0%   646,745 - 0.0%   619,006 - 0.0%
Total liabilities and equity  1,346,942 45,310 13.5%  1,351,599 34,945 10.5%  1,319,208 31,752 9.7%
                   
NIM - Total     22.1%     19.2%     17.5%
Spread - Total     14.6%     13.7%     13.2%
                   
Nominal rates are calculated over a 365-day year
Does not include Net income from measurement of financial instruments at fair value through P&L nor Net income from write-down of assets at amortized cost and at fair value through OCI
Sight deposits include savings accounts and interest-bearing checking accounts. 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 %
  2Q22 1Q22 2Q21
  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   946,970 99,389 42.6%   933,148 80,706 34.3%   838,113 70,883 34.3%
Debt securities  492,031   58,732 48.4%  477,079   44,895 37.3%  393,537   36,748 37.9%
Loans to customers/financial institutions  446,324   40,655 36.9%  448,628   35,809 31.7%  440,237   34,118 31.4%
Loans to the BCRA  -   2 -  -   2 -  - - -
Other assets   8,615 - 0.0%   7,442 - 0.0%   4,339 16 1.5%
Total non interest-earning assets   180,416 - 0.0%   190,810 - 0.0%   193,757 - 0.0%
Total Assets  1,127,386 99,389 35.8%  1,123,959 80,706 28.5%  1,031,870 70,883 27.9%
Total interest-bearing liabilities   557,514 45,292 32.9%   549,423 34,917 25.2%   498,582 31,631 25.7%
Savings accounts  133,275  286 0.9%  149,109  182 0.5%  200,164  4,898 9.9%
Time deposits  315,052   36,031 46.4%  296,328   27,489 36.8%  286,938   26,093 36.9%
Debt securities issued   253 84 134.7%   433 75 68.8%   1,605  174 43.9%
Other liabilities  108,934  8,891 33.1%  103,553  7,172 27.5%   9,875  466 19.1%
Total non-interest-bearing liabilities   571,560 - 0.0%   572,449 - 0.0%   533,296 - 0.0%
Total liabilities and equity  1,129,074 45,292 16.3%  1,121,872 34,917 12.3%  1,031,878 31,631 12.4%
                   
NIM - AR$     23.2%     19.5%     19.0%
Spread - AR$     9.6%     9.1%     8.6%
                   
Nominal rates are calculated over a 365-day year
Does not include Net income from measurement of financial instruments at fair value through P&L nor Net income from write-down of assets at amortized cost and at fair value through OCI
Sight deposits include savings accounts and interest-bearing checking accounts. Non interest-bearing accounts are included in non-interest-bearing liabilities.
   
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ASSETS & LIABILITIES PERFORMANCE - FOREIGN CURRENCY BBVA ARGENTINA CONSOLIDATED
In millions of AR$. Rates and spreads in annualized %
  2Q22 1Q22 2Q21
 

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  40,513 231 2.3%  36,835 256 2.8%  77,382 726 3.8%
Debt securities   3,784   5 0.5%   3,410   2 0.3%  - - #DIV/0!
Loans to customers/financial institutions 31,536  226 2.9% 27,893  252 3.6% 67,844  725 4.3%
Loans to the BCRA 1 - 0.0%  - - #DIV/0!  - - #DIV/0!
Other assets   5,192 - 0.0%   5,532   1 0.1%   9,537   2 0.1%
Total non interest-earning assets   179,044 - 0.0%   190,806 - 0.0%   209,957 - 0.0%
Total Assets   219,557 231 0.4%   227,641 256 0.4%   287,338 726 1.0%
Total interest-bearing liabilities   145,310   18 0.1%   155,431   28 0.1%   201,620 121 0.2%
Savings accounts  125,606   2 0.0%  133,960   2 0.0%  167,479   3 0.0%
Time deposits and Investment accounts 19,088   9 0.2% 20,251   9 0.2% 28,622 20 0.3%
Other liabilities   616   7 4.6%   1,220 16 5.3%   5,520 98 7.2%
Total non-interest-bearing liabilities  72,558 - 0.0%  74,297 - 0.0%  85,710 - 0.0%
Total liabilities and equity   217,868   18 0.0%   229,728   28 0.0%   287,330 121 0.2%
                   
NIM - Foreign currency     2.1%     2.5%     3.2%
Spread - Foreign currency     2.3%     2.7%     3.6%
                   
Nominal rates are calculated over a 365-day year
Does not include Net income from measurement of financial instruments at fair value through P&L nor Net income from write-down of assets at amortized cost and at fair value through OCI
Sight deposits include savings accounts and interest-bearing checking accounts. 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       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
Net Fee Income  10,306 7,783 8,902  32.4%  15.8%
Fee Income  14,393  15,196  15,639  (5.3%)  (8.0%)
Linked to liabilities   5,604   6,252   5,545  (10.4%)   1.1%
From credit cards   5,062   5,097   7,312 (0.7%)  (30.8%)
BBVA Points   1,195   1,267   269 (5.7%)  344.2%
Linked to loans   1,138   1,166   909 (2.4%) 25.2%
From insurance   612   657   689 (6.8%)  (11.2%)
From foreign trade and foreign currency transactions   633   602   733   5.1%  (13.6%)
Other fee income   149   155   182 (3.9%)  (18.1%)
Fee expenses 4,087 7,413 6,737   (44.9%)   (39.3%)

Net fee income as of 2Q22 totaled $10.3 billion, increasing 32.4% or $2.5 billion QoQ and increasing 15.8% or $1.4 billion YoY.

In 2Q22, fee income totaled $14.4 billion, falling 5.3% QoQ and 8.0% YoY. The quarterly fall is mainly explained by a decline in fees linked to liabilities, especially due to the lag in increases in prices of account and packaged accounts’ maintenance, which last increment took place the previous quarter.

Regarding fee expenses, these totaled $4.1 billion, contracting 44.9% QoQ and 39.3% YoY. Lower expenses in the quarter are partially explained by the migration of clients from the Latam benefit program into the Puntos BBVA program (given the former’s partnership end in February 2022), and lower expenditures linked to credit and debit cards.

 

   
  9
 
 

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       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
Net Income from financial instruments at FV through P&L 1,343 4,793 2,054   (72.0%)   (34.6%)
Income from write-down  or sale of financial assets  -   3,068  -   (100.0%)  N/A 
Income from government securities   1,123   816   996 37.6% 12.8%
Income from private securities   187   152 (116) 23.0%  261.2%
Interest rate swaps  -  (1)  53  100.0%   (100.0%)
Gains from foreign currency forward transactions  21   761   1,121  (97.2%)  (98.1%)
Income from debt and equity instruments  12 1  -  n.m   N/A 
Other  -  (4)  -  100.0%  N/A 

In 2Q22, net income from financial instruments at fair value (FV) through P&L was $1.3 billion, decreasing 72.0% or $3.5 billion QoQ and 34.6% or $711 million YoY.

These results are mainly explained by an increase in the income from government securities line item, especially due to the greater position and interest rate generated by the LELIQ portfolio, and a greater CER linked National Treasury bond portfolio.

Nonetheless the result falls, explained by the sale procedure of the Bank’s remaining position in Prisma during 1Q22, which had generated a $3.1 billion profit (at current values) in that period.

There is also a decrease in the line gains from foreign currency forward transactions.

DIFFERENCES IN QUOTED PRICES OF GOLD AND FOREIGN FOREIGN CURRENCY BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
Foreign exchange and gold gains/(losses) (1) 1,557 2,007 1,937   (22.4%)   (19.6%)
From foreign exchange position (621) (475) (104)  (30.7%)   (497.1%)
Income from purchase-sale of foreign currency   2,178   2,482   2,041  (12.2%)   6.7%
Net income from financial instruments at FV through P&L (2) 21  761 1,121   (97.2%)   (98.1%)
Income from foreign currency forward transactions  21   761   1,121  (97.2%)  (98.1%)
Total differences in quoted prices of gold & foreign currency (1) + (2) 1,578 2,768 3,058   (43.0%)   (48.4%)

In 2Q22, the total differences in quoted prices of gold and foreign currency showed profit for $1.6 billion, falling 43.0% or $1.2 billion compared to 1Q22, mainly due to lower results in income from foreign currency forward transactions and a fall in the income from purchase-sale of foreign currency.

   
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Other Operating Income

OTHER OPERATING INCOME BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
Operating Income 3,317 3,958 2,971   (16.2%)  11.6%
Rental of safe deposit boxes (1)   513   604   563  (15.1%) (8.9%)
Adjustments and interest on miscellaneous receivables (1)   1,229   894   878 37.5% 40.0%
Punitive interest (1)  74  67   100 10.4%  (26.0%)
Loans recovered   505   465   646   8.6%  (21.8%)
Fee income from credit and debit cards (1)   284   299   190 (5.0%) 49.5%
Income from initial recognition of public securities  -  -  (1)  N/A   100.0%
Income from sale of assets in equity instruments  74   985  -  (92.5%)  N/A 
Fee expenses recovery   138   159   138  (13.2%) -
Rents   139  53  -  162.3%  N/A 
Sindicated transaction fees  32  83  26  (61.4%) 23.1%
Other Operating Income(2)   329   349   431 (5.7%)  (23.7%)
(1) Included in the efficiency ratio calculation
(2) Includes some of the concepts used in the efficiency ratio calculation

In 2Q22 other operating income totaled $3.3 billion, falling 16.2% or $641 million QoQ, and increasing 11.6% or $346 million YoY. Quarterly decrease is partially explained by a 92.5% fall in the Income from sale of assets in equity instruments line item, as a result from the sale procedures of the remaining stock participation of the Bank in Prisma in 1Q22. Additionally, there has been a 15.1% decrease in the rental of safe deposit boxes line item, especially due to a lag in price increases (as they have been last changed during the previous quarter) and a 37.5% increase in adjustments and interest on miscellaneous receivables.

   
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Operating Expenses

Personnel Benefits and Administrative Expenses

PERSONNEL BENEFITS & ADMINISTRATIVE EXPENSES BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
Total Personnel Benefits and Adminsitrative Expenses  24,967  21,794  20,067   14.6%   24.4%
Personnel Benefits (1)  12,707  10,633  10,428   19.5%   21.9%
Administrative expenses (1)  12,260  11,161 9,639  9.8%   27.2%
Travel expenses   69   49   60   40.8%   15.0%
Outsourced administrative expenses 885 808 754  9.5%   17.4%
Security services 319 330 326   (3.3%)   (2.1%)
Fees to Bank Directors and Supervisory Committee   27   15   23   80.0%   17.4%
Other fees 403 412 436   (2.2%)   (7.6%)
Insurance 109 126 130 (13.5%) (16.2%)
Rent 2,191 1,828 1,192   19.9%   83.8%
Stationery and supplies -   30   11  (100.0%)  (100.0%)
Electricity and communications 421 463 496   (9.1%) (15.1%)
Advertising 602 598 353  0.7%   70.5%
Taxes 2,396 2,474 2,198   (3.2%)  9.0%
Maintenance costs 1,127 1,143 1,154   (1.4%)   (2.3%)
Armored transportation services 1,328 1,431 1,348   (7.2%)   (1.5%)
Software 1,307 411 160 218.0%  n.m 
Document distribution 456 412 330   10.7%   38.2%
Commercial reports 205 210 302   (2.4%) (32.1%)
Other administrative expenses 415 421 366   (1.4%)   13.4%
           
Headcount*          
BBVA (Bank) 5,746 5,753 5,828 (7)  (82)
Subsidiaries (2)   93   99   96 (6) (3)
Total employees* 5,839 5,852 5,924  (13)  (85)
Branches 1,948 1,994 2,145  (46)   (197)
Main office 3,891 3,858 3,779   33 112
           
Total branches** 243 243 243 - -
           
Efficiency Ratio          
Efficiency ratio 70.4% 72.2% 67.9%   (180)bps 250 bps
Accumulated Efficiency Ratio 71.3% 72.2% 70.1%  (90)bps 120 bps
Efficiency ratio - Excl. Inflation adjustment 43.2% 43.3% 47.1%  (10)bps   (390)bps
Accumulated Efficiency Ratio - Excl. Inflation adjustment 43.3% 43.3% 48.5%   -   (520)bps
           
(1) Concept included in the efficiency ratio calculation
(2) Includes BBVA Asset Management, PSA & VWFS
*corresponds to total effective employees, net of temporary contract employees
**do not include administrative offices. As of 2Q22, 46% owned and 54% rented.

During 2Q22, personnel benefits and administrative expenses totaled $25.0 billion, increasing 14.6% or $3.2 billion compared to 1Q22, and 24.4% or $4.9 billion compared to 2Q21.

   
  12
 
 

Personnel benefits grew 19.5% QoQ, and 21.9% YoY. The quarterly increase is partially explained by the collective wage agreement reached with the unions, and its retroactive effect corresponding to 1Q22 which impacted in April (16.1% as of January 1, 34.1% as of April 1, 51.1% as of July 1, and 60% accumulated as of October 1), with review clauses in October and November 2022. Also, during 2Q22, the stock of vacation not taken was revaluated, and variable compensation increased.

As of 2Q22, administrative expenses increased 9.8% QoQ, and 27.2% YoY. The quarterly increase is partially explained by (i) an increase in outsourced administrative expenses, (ii) an increase in rent and (iii) an increase in software expenses.

The negative effect of the aforementioned items was offset by a reduction in the taxes line item, explained by a fall in municipal charges, maintenance and reparation expenses, and in armored transportation given the efficiency plan applied on the latter.

The accumulated efficiency ratio as of 2Q22 was 71.3%, improving compared to the 72.2% reported in 1Q22, and deteriorating versus the 70.1% reported in 2Q21. The quarterly improvement is explained by a higher percentage increase in the denominator (income considering monetary position results) than the numerator (expenses), especially thanks to better net results from fees and interest income.

Excluding inflation adjustments considered in the income from the monetary position line item, the 2Q22 accumulated efficiency ratio would have been 43.3%, remaining stable compared to the 43.3% of 1Q22 and improving compared to the 48.5% of 2Q21.

Other Operating Expenses

OTHER OPERATING EXPENSES BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
Other Operating Expenses  10,254 9,097 9,123  12.7%  12.4%
Turnover tax   6,353   6,232   5,896   1.9%   7.8%
Initial loss of loans below market rate   880   582   703 51.2% 25.2%
Contribution to the Deposit Guarantee Fund (SEDESA)   364   370   373 (1.6%) (2.4%)
Interest on liabilities from financial lease   109   125   169  (12.8%)  (35.5%)
Other allowances   492   724   840  (32.0%)  (41.4%)
Other operating expenses   2,056   1,064   1,142 93.2% 80.0%

In 2Q22, other operating expenses totaled $10.3 billion, increasing 12.7% or $1.2 billion QoQ, and 12.4% or $1.1 billion YoY.

The key factor explaining the quarterly growth is in the other operating expenses line item, with an increase of 93.2%, considering the provision for reorganization recorded in the fourth quarter of 2021, and which was adjusted in 2Q22 according to increases in inflation and associated wage agreements with the unions.

The aforementioned expenses are partially offset by the other allowances line item, decreasing 32.0% related to the increase in use of off-balance sheet items.

Income from Associates

This line reflects the results from non-consolidated associate companies. During 2Q22, profit of $218 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.

   
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Income Tax

Accumulated income tax during the first six months of 2022 recorded a profit of $5.4 billion.

Regarding 2Q22, income tax expenses show a positive result as a result, affected by the implications of inflation adjustments in the determination of payable taxes and tax deferrals.

Accumulated income tax during the first six months of 2021 recorded a gain of $5.6 billion. As of 2Q21, tax expenses show a positive result of $4.8 billion due to the reversal of the provision connected to the repayment of income tax inflation adjustments for 2017 and 2018 fiscal years, for a total of $4.3 billion (non-adjusted figures), recorded during the first quarter of 2018 and the second quarter of 2019 respectively. The reversal is a result of an assessment, funded on legal and tax advisors’ opinions, in which the Bank considers that probabilities of getting a final instance favorable court ruling are higher for those fiscal years.

The accumulated benefit in the income tax line as of 2Q21 includes the positive result obtained in 1Q21 due to the reversal of a provision of $1.2 billion (non-adjusted figures) recorded during the second quarter of 2017 corresponding to 2016 fiscal year, which was funded on a favorable final sentence in court.

   
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Balance sheet and activity

Loans and Other Financing

LOANS AND OTHER FINANCING BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
To the public sector 6 5  - 20.0%  N/A 
To the financial sector   5,611   5,621   4,373 (0.2%) 28.3%
Non-financial private sector and residents abroad   519,257   484,640   524,513 7.1%  (1.0%)
Non-financial private sector and residents abroad - AR$   477,380   455,912   455,670 4.7% 4.8%
Overdrafts 36,858 30,412 19,746 21.2% 86.7%
Discounted instruments 60,496 57,476 54,052   5.3% 11.9%
Mortgage loans 29,301 28,926 33,626   1.3%  (12.9%)
Pledge loans 19,812 20,942 22,673 (5.4%)  (12.6%)
Consumer loans 53,417 52,889 54,454   1.0% (1.9%)
Credit cards  197,171  189,135  204,969   4.2% (3.8%)
Receivables from financial leases   3,338   3,426   4,195 (2.6%)  (20.4%)
Other loans 76,987 72,706 61,955   5.9% 24.3%
Non-financial private sector and residents abroad - Foreign Currency  41,877  28,728  68,843  45.8%   (39.2%)
Overdrafts 4 4 3 - 33.3%
Discounted instruments 8  -   4,730  N/A   (99.8%)
Credit cards   7,210   5,011   3,382 43.9%  113.2%
Receivables from financial leases  -  19   141   (100.0%)   (100.0%)
Loans for the prefinancing and financing of exports 22,726 16,057 40,306 41.5%  (43.6%)
Other loans 11,929   7,637 20,281 56.2%  (41.2%)
           
% of total loans to Private sector in AR$ 91.9% 94.1% 86.9%   (214)bps  506 bps
% of total loans to Private sector in Foreign Currency 8.1% 5.9% 13.1%  214 bps   (506)bps
           
% of mortgage loans with UVA adjustments / Total mortgage loans (1) 1.7% 2.1% 2.3%  (40)pbs  (63)pbs
% of pledge loans with UVA adjustments / Total pledge loans (1) 3.7% 4.6% 8.4%  (93)pbs   (469)pbs
% of consumer loans with UVA adjustments / Total consumer loans (1) 1.7% 2.5% 6.8%  (86)pbs   (519)pbs
% of loans with UVA adjustments / Total loans and other financing(1) 0.4% 0.6% 1.3%  (18)pbs  (94)pbs
           
Total loans and other financing   524,874   490,266   528,886 7.1%  (0.8%)
Allowances  (13,128)  (14,226)  (25,581)   7.7% 48.7%
Total net loans and other financing   511,746   476,040   503,305 7.5% 1.7%
           

(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       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
FX rate* 125.22 110.97   95.73 12.8% 30.8%
Non-financial private sector and residents abroad - Foreign Currency (USD)   334   221   439 51.5%  (23.7%)
*Wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500, as of the end of period.
   
  15
 
 

Private sector loans as of 2Q22 totaled $519.3 billion, increasing 7.1% or $34.6 billion QoQ, and falling 1.0% or $5.3 billion YoY.

Loans to the private sector in pesos increased 4.7% in 2Q22, and 4.8% YoY. During the quarter, growth was especially driven by a 4.2% increase in credit cards (due to greater retail consumption), a 21.2% increase in overdrafts, a 5.9% increase in other loans and a 5.3% increase in discounted instruments. Regarding other loans, these were boosted by commercial loans (“PIV”, especially productive investment lines), and concerning overdrafts, these were mainly promoted by corporate banking transactions. These increases were offset by a 5.4% fall in pledge loans.

Loans to the private sector denominated in foreign currency increased 45.8% QoQ and fell 39.2% YoY. Quarterly increase is mainly explained by a 41.5% increase in prefinancing and financing of exports, followed by a 56.2% increase in other loans and a 43.9% increase in credit cards. All the aforementioned are explained by greater activity in foreign currency. Loans to the private sector in foreign currency measured in U.S. dollars increased 51.5% QoQ and fell 23.7% YoY. The depreciation of the argentine peso versus the U.S. dollar was 11.4% QoQ and 23.5% YoY4.

In 2Q22, total loans and other financing totaled $524.9 billion, increasing 7.1% compared to 1Q22 and slightly falling 0.8% compared to 2Q21.

LOANS AND OTHER FINANCING BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
Non-financial private sector and residents abroad - Retail   306,911   296,903   319,104 3.4%  (3.8%)
Mortgage loans 29,301 28,926 33,626   1.3%  (12.9%)
Pledge loans 19,812 20,942 22,673 (5.4%)  (12.6%)
Consumer loans 53,417 52,889 54,454   1.0% (1.9%)
Credit cards  204,381  194,146  208,351   5.3% (1.9%)
Non-financial private sector and residents abroad - Commercial   212,346   187,737   205,409  13.1% 3.4%
Overdrafts 36,862 30,416 19,749 21.2% 86.7%
Discounted instruments 60,504 57,476 58,782   5.3%   2.9%
Receivables from financial leases   3,338   3,445   4,336 (3.1%)  (23.0%)
Loans for the prefinancing and financing of exports 22,726 16,057 40,306 41.5%  (43.6%)
Other loans 88,916 80,343 82,236 10.7%   8.1%
           
% of total loans to Retail sector 59.1% 61.3% 60.8%   (216)bps   (173)bps
% of total loans to Commercial sector 40.9% 38.7% 39.2%  216 bps  173 bps

In real terms, retail loans (mortgage, pledge, consumer and credit cards) have increased 3.4% QoQ and decreased 3.8% YoY in real terms. During the quarter, growth is mainly explained by a 5.3% increase in credit cards, followed by a 1.0% increase in consumer loans, the latter explained by marketing actions through different channels, and lines granted to micro-entrepreneurs . These increases were offset by a 5.4% fall in pledge loans.

Commercial loans (overdrafts, discounted instruments, receivables from financial leases, loans for the prefinancing and financing of exports, and other loans) grew 13.1% QoQ and 3.4% YoY both in real terms. Quarterly increase is explained by a 10.7% growth in other loans, a 41.5% increase in prefinancing and financing of exports, followed by a 21.2% increase in overdrafts.

Loan portfolios were highly impacted by the effect of inflation during the second quarter of 2022, which reached 17.3%. In nominal terms, BBVA Argentina managed to increase the retail, commercial and total loan portfolio by 21.3%, 32.7% and 25.6% respectively during the quarter, well beyond real term growth.

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

   
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LOANS AND OTHER FINANCING - NON RESTATED FIGURES BBVA ARGENTINA CONSOLIDATED
In millions of AR$       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
Non-financial private sector and residents abroad - Retail  306,911  253,110  194,596 21.3% 57.7%
Non-financial private sector and residents abroad - Commercial  212,346  160,046  125,265 32.7% 69.5%
Total loans and other financing (1)  524,874  417,952  322,527 25.6% 62.7%
(1) Does not include allowances

As of 2Q22, the total loans and other financing over deposits ratio was 53.9%, above the 52.4% recorded in 1Q22 and the 52.9% in 2Q21.

MARKET SHARE - PRIVATE SECTOR LOANS BBVA ARGENTINA CONSOLIDATED
In %       ∆ bps
  2Q22 1Q22 2Q21 QoQ YoY
Private sector loans - Bank 7.44% 7.00% 7.35% 44 bps   9 bps
Private sector loans - Consolidated* 8.35% 7.89% 8.21% 46 bps 14 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
  2Q22 1Q22 2Q21 QoQ YoY
Government services n.m n.m n.m - -
Financial Sector 1.07% 1.15% 0.83% (8)bps 24 bps
Agricultural and Livestock 4.57% 4.64% 4.87% (7)bps  (30)bps
Mining products 3.89% 3.83% 6.71%   6 bps   (282)bps
Other manufacturing 11.49% 10.44% 9.94%  105 bps  155 bps
Electricity, oil,water and sanitary services 0.23% 0.16% 0.35%   7 bps  (12)bps
Wholesale and retail trade 5.67% 5.12% 4.98% 55 bps 69 bps
Transport 1.27% 1.06% 0.88% 21 bps 39 bps
Services 1.54% 1.95% 0.46%  (41)bps  108 bps
Others 15.78% 13.92% 12.19%  186 bps  359 bps
Construction 0.57% 0.68% 0.57%  (11)bps (0)bps
Consumer 53.91% 57.06% 58.22%   (314)bps   (431)bps
Total gross loans and other financing 100% 100% 100%    

   
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Asset Quality

ASSET QUALITY BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
Commercial non-performing portfolio (1)   892   1,143   4,034  (22.0%)  (77.9%)
Total commercial portfolio  185,184  143,133  179,702 29.4%   3.1%
Commercial non-performing portfolio / Total commercial portfolio 0.48% 0.80% 2.24%  (32)bps   (176)bps
Retail non-performing portfolio (1)   5,092   5,331   9,582 (4.5%)  (46.9%)
Total retail portfolio  367,004  357,669  366,391   2.6%   0.2%
Retail non-performing portfolio / Total retail portfolio 1.39% 1.49% 2.62%  (10)pbs   (123)pbs
Total non-performing portfolio (1)   5,984   6,474 13,616 (7.6%)  (56.1%)
Total portfolio  552,188  500,802  546,093 10.3%   1.1%
Total non-performing portfolio / Total portfolio 1.08% 1.29% 2.49%  (21)bps   (141)bps
Allowances 13,128 14,226 25,581 (7.7%)  (48.7%)
Allowances  /Total non-performing portfolio  219.39% 219.73% 187.87%  (34)bps 3,152 bps
Quarterly change in Write-offs    1,653   4,528   1,151  (63.5%) 43.6%
Write offs / Total portfolio 0.30% 0.90% 0.21%  (60)bps   9 bps
Cost of Risk (CoR) 1.94% 2.11% 2.61%  (17)bps  (67)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

In 2Q22, asset quality ratio or NPL (total non-performing portfolio / total portfolio) was 1.08%, compared to the 1.29% recorded in 1Q22. The decrease is mainly explained by a good loan portfolio behavior, mainly on the commercial side, as well as growth in the total portfolio.

The coverage ratio (allowances / total non-performing portfolio) was 219.39% in 2Q22, remaining stable versus the 219.73% recorded in 1Q22.

Cost of risk (loan loss allowances / average total loans) reached 1.94% as of 2Q22, below 1Q22’s 2.11%. This is mainly explained by a higher growth in the average loan portfolio versus quarterly loan loss allowances.

ANALYSIS FOR THE ALLOWANCE OF LOAN LOSSES  BBVA ARGENTINA CONSOLIDATED
In millions of AR$             
  Balance at 12/31/2021 Stage 1 Stage 2 Stage 3 Monetary result generated by allowances Balance at 06/30/2022
Other financial assets   392  72  -  36 (114)  386
Loans and other financing 18,589   1,047 (101) (1,808) (4,598)   13,129
Other debt securities  21 5  -  -  (7) 19
Eventual commitments   1,162   139  10  14 (327)  998
Total allowances  20,164 1,263  (91)   (1,758)   (5,046) 14,532
             
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 2Q22 reflect expected losses driven by the adoption of the IFRS 9 standards as of January 1, 2020, except for debt instruments issued by the nonfinancial government sector which were excluded from the scope of such standard.

 

   
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Public Sector Exposure

NET PUBLIC DEBT EXPOSURE BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
Treasury and Government securities   127,165   122,396  78,816 3.9%  61.3%
Treasury and National Government   127,165   122,396  78,816 3.9%  61.3%
National Treasury Public Debt in AR$  124,084  119,576 78,816   3.8% 57.4%
National Treasury Public Debt in USD   1,227   869  - 41.1%  N/A 
National Treasury Public Debt in AR$ linked to US dollars   1,854   1,950  - (4.9%)  N/A 
Loans to the Public Sector   3   1  -  200.0%  N/A 
AR$ Subtotal   124,087   119,577  78,816 3.8%  57.4%
USD Subtotal* 3,081 2,820 - 9.3%  N/A 
Total Public Debt Exposure   127,168   122,397  78,816 3.9%  61.3%
           
B.C.R.A. Exposure   442,418   397,088   297,344  11.4%  48.8%
Instruments   326,596   318,004   150,189 2.7%  117.5%
Leliqs  278,191  289,835  150,189 (4.0%) 85.2%
Notaliqs 48,405 28,169  - 71.8%  N/A 
Loans to the B.C.R.A.   3   4  -   (25.0%)  N/A 
Repo   115,822  79,084   147,155  46.5%   (21.3%)
B.C.R.A. - AR$  115,822 79,084  147,155 46.5%  (21.3%)
           
 % Public sector exposure (Excl. B.C.R.A.) / Total assets 9.0% 8.9% 5.6% 12 bps  349 bps
           
*Includes USD-linked Treasury public debt in AR$
This table does not include deposits at the Central Bank used to comply with reserve requirements.

2Q22 public sector exposure (excluding BCRA) totaled $127.2 billion, growing 3.9% or $4.8 billion QoQ, and 61.3% or $48.4 billion YoY. The quarterly increase is explained by a greater position in CER-linked treasury bonds, CER-linked treasury bills (LECER), as well as U.S. dollar denominated treasury bonds.

Short-term liquidity is mostly allocated in BCRA instruments, which increased 11.4% QoQ and 48.8% YoY in real terms. The quarterly increase is explained by a higher REPO position (at quarter-end).

Exposure to the public sector (excluding BCRA) represents 9.0% of total assets, above the 8.9% in 1Q22 and the 5.6% in 2Q21.

   
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Deposits

TOTAL DEPOSITS BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
Total deposits   974,101   935,264   998,847 4.2%  (2.5%)
Non-financial Public Sector 14,543 20,423 11,678  (28.8%) 24.5%
Financial Sector   289   343   715  (15.7%)  (59.6%)
Non-financial private sector and residents abroad   959,269   914,498   986,454 4.9%  (2.8%)
Non-financial private sector and residents abroad - AR$   770,875   718,619   724,943 7.3% 6.3%
Checking accounts  237,863  235,009  227,196   1.2%   4.7%
Savings accounts  181,545  152,797  188,115 18.8% (3.5%)
Time deposits  252,627  237,463  237,114   6.4%   6.5%
Investment accounts  93,401 87,576 66,548   6.7% 40.4%
Other   5,439   5,774   5,970 (5.8%) (8.9%)
Non-financial private sector and res. abroad - Foreign Currency   188,394   195,879   261,511  (3.8%)   (28.0%)
Checking accounts  16  59  59  (72.9%)  (72.9%)
Savings accounts  167,178  172,855  230,004 (3.3%)  (27.3%)
Time deposits 19,045 20,548 28,038 (7.3%)  (32.1%)
Other   2,155   2,417   3,410  (10.8%)  (36.8%)
           
% of total portfolio in the private sector in AR$ 80.4% 78.6% 73.5%  178 bps  687 bps
% of total portfolio in the private sector in Foregin Currency 19.6% 21.4% 26.5%   (178)bps   (687)bps
           
% of time deposits with UVA adjustments / Total AR$ Deposits 7.0% 4.4% 4.4%  265 bps  257 bps

DEPOSITS TO THE NON-FINANCIAL PRIVATE SECTOR AND RES. ABROAD IN FOREIGN CURRENCY BBVA ARGENTINA CONSOLIDATED
In millions of USD       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
FX rate*   125.2   111.0  95.7 12.8% 30.8%
Non-financial private sector and residents abroad - Foreign Currency (USD)   1,505   1,505   1,666 (0.0%) (9.7%)
*Wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500, as of the end of period.

As of 2Q22, total deposits reached $974.1 billion, increasing 4.2% or $38.8 billion QoQ, and falling 2.5% or $24.7 billion YoY.

Private non-financial sector deposits in 2Q22 totaled $959.3 billion, growing 4.9% QoQ, and falling 2.8% YoY.

Private non-financial sector deposits in pesos totaled $770.9 billion, increasing 7.3% compared to 1Q22, and 6.3% compared to 2Q21. The quarterly change is mainly affected by an increase in sight deposits, especially savings accounts by 18.8%, and by a 6.4% and a 6.7% increase in time deposits and investment accounts respectively.

Private non-financial sector deposits in foreign currency expressed in pesos fell 3.8% QoQ and 28.0% YoY. Measured in U.S. dollars, these deposits remained stable QoQ and fell 9.7% YoY. 

   
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PRIVATE DEPOSITS BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
Non-financial private sector and residents abroad   959,269   914,498   986,454 4.9%  (2.8%)
Sight deposits   594,196   568,911   654,754 4.4%  (9.2%)
Checking accounts  237,879  235,068  227,255   1.2%   4.7%
Savings accounts  348,723  325,652  418,119   7.1%  (16.6%)
Other   7,594   8,191   9,380 (7.3%)  (19.0%)
Time deposits   365,073   345,587   331,700 5.6%  10.1%
Time deposits  271,672  258,011  265,152   5.3%   2.5%
Investment accounts 93,401 87,576 66,548   6.7% 40.4%
           
% of sight deposits over total private deposits 62.5% 63.0% 66.8%  (53)bps   (427)bps
% of time deposits over total private deposits 37.5% 37.0% 33.2% 53 bps  427 bps

 

PRIVATE DEPOSITS - NON RESTATED FIGURES BBVA ARGENTINA CONSOLIDATED
In millions of AR$       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
Sight deposits  594,196  484,998  399,282 22.5% 48.8%
Time deposits  365,073  294,613  202,278 23.9% 80.5%
Total deposits  974,101  797,314  609,118 22.2% 59.9%

As of 2Q22, the Bank’s transactional deposits (checking accounts and savings accounts) represented 61.2% of total non-financial private deposits, totaling $586.6 billion, versus 61.3% in 1Q22.

MARKET SHARE - PRIVATE SECTOR DEPOSITS BBVA ARGENTINA CONSOLIDATED
In %       ∆ bps
  2Q22 1Q22 2Q21 QoQ YoY
Private sector Deposits - Consolidated* 7.15% 7.12% 7.41%   3 pbs  (29)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       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
Other sources of funds   250,821   238,605   230,972 5.1% 8.6%
Central Bank  56  60  49 (7.2%) 13.7%
Banks and international organizations 8  -   4,800  N/A   (99.8%)
Financing received from local financial institutions 20,492 14,489 11,083 41.4% 84.9%
Corporate bonds   395   527   1,428  (25.0%)  (72.3%)
Equity  229,870  223,529  213,612   2.8%   7.6%

In 2Q22, other sources of funds totaled $250.8 billion, growing 5.1% or $12.2 billion QoQ, and 8.6% or $19.8 billion YoY.

Quarterly increase is mostly explained by the 2.8% increase in equity, followed by an increase in financing received from local financial institutions by 41.4%, taken by consolidated companies.

   
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Liquid Assets

TOTAL LIQUID ASSETS BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
Total liquid assets   746,894   744,837   756,602 0.3%  (1.3%)
Cash and deposits in banks  185,377  233,394  325,225  (20.6%)  (43.0%)
Debt securities at fair value through profit or loss 20,133 12,178   7,409 65.3%  171.7%
Government securities   4,013   3,578   7,409 12.2%  (45.8%)
Liquidity bills of B. C. R. A. 16,120   8,600  - 87.4%  N/A 
Net REPO transactions  115,822 79,084  172,616 46.5%  (32.9%)
Other debt securities  425,562  420,181  251,352   1.3% 69.3%
Government securities  114,923  110,775 75,177  3.7%  52.9%
Liquidity bills of B. C. R. A.  310,639  309,406  176,175  0.4%  76.3%
           
Liquid assets / Total Deposits 76.7% 79.6% 75.7%   (296)bps 93 bps

In 2Q22, liquid assets were $746.9 billion, mildly growing 0.3% or $2.1 billion compared to 1Q22, and falling 1.3% or $9.7 billion compared to 2Q21, mainly due to a circumstantial increase in net REPO transactions (quarter-end position), offset by a reduction in cash and deposits in banks.

In the quarter, the liquidity ratio (liquid assets / total deposits) reached 76.7%. Liquidity ratio in local and foreign currency reached 75.1% and 83.1% respectively.

Solvency

MINIMUM CAPITAL REQUIREMENT BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
Minimum capital requirement  69,247  68,629  69,998  0.9%   (1.1%)
Credit risk  49,734  48,366  51,884  2.8%   (4.1%)
Market risk 571 765 935 (25.3%) (38.9%)
Operational risk  18,942  19,498  17,179   (2.9%)   10.3%
           
Integrated Capital - RPC (1)*   193,938   197,813   199,144   (2.0%)   (2.6%)
Ordinary Capital Level 1 ( COn1)   231,115   224,685   221,576  2.9%  4.3%
Deductible items COn1 (38,460) (28,793) (27,731) (33.6%) (38.7%)
Additional Capital Level 2 (COn2) 1,283 1,921 5,298 (33.2%) (75.8%)
           
Excess Capital          
Integration excess   124,691   129,185   129,146   (3.5%)   (3.4%)
Excess as  % of minimum capital requirement 180.1% 188.2% 184.5%   (817)bps   (443)bps
           
Risk-weighted assets (RWA, according to B.C.R.A. regulation) (2)   847,483   840,250   856,092  0.9%   (1.0%)
           
Regulatory Capital Ratio (1)/(2) 22.9% 23.5% 23.3% (66)pbs (38)pbs
TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) 22.7% 23.3% 22.6% (58)pbs  9 pbs
           
* RPC includes 100% of quarterly results
   
  22
 
 

BBVA Argentina continues to show strong solvency indicators on 2Q22. Capital ratio reached 22.9%, below than 1Q22’s 23.5%, mostly due to the effect of Other Comprehensive Income in equity. Tier 1 ratio was 22.7% and capital excess over regulatory requirement was $124.7 billion or 180.1%.

BBVA Argentina Asset Management S.A.

MUTUAL FUNDS ASSETS BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
FBA Renta Pesos  231,191  239,362  227,052 (3.4%)   1.8%
FBA Renta Fija Plus 15,358 24,059 16,918  (36.2%) (9.2%)
FBA Ahorro Pesos   6,132 17,323   2,502  (64.6%)  145.1%
FBA Horizonte   376   439   612  (14.4%)  (38.6%)
FBA Calificado   858   1,121   969  (23.5%)  (11.5%)
FBA Acciones Argentinas   730   994   800  (26.6%) (8.8%)
FBA Acciones Latinoamericanas   578   663   781  (12.8%)  (26.0%)
FBA Bonos Argentina   1,037   1,822   613  (43.1%) 69.2%
FBA Bonos Globales  36  52   200  (30.8%)  (82.0%)
FBA Renta Mixta   230   351   254  (34.5%) (9.4%)
FBA Gestión I  37  42  52  (11.9%)  (28.8%)
FBA Horizonte Plus  12  16  43  (25.0%)  (72.1%)
FBA Retorno Total I  19  22  34  (13.6%)  (44.1%)
FBA Renta Publica I  30  39 3  (23.1%)  n.m 
FBA Renta Fija Local 2 2 3 -  (33.3%)
Total assets   256,626   286,307   250,836   (10.4%) 2.3%

MARKET SHARE - MUTUAL FUNDS BBVA ASSET MANAGEMENT
In %       ∆ bps
  2Q22 1Q22 2Q21 QoQ YoY
Mutual funds 5.60% 5.81% 6.19%  (21)bps  (38)bps
           
Source: Cámara Argentina de Fondos Comunes de Inversión

   
  23
 
 

Other Events

Main Relevant Events

·As of June 13, 2022, the BCRA’s Superintendence of Exchange Institutions resolved to authorize Banco BBVA Argentina S.A. the distribution of profits in cash and/or in securities for a total amount $13.2 billion, which must be carried out in instalments, in accordance with the provisions set forth by Communication "A" 7421 of the BCRA and whose payment schedule shall be reported soon. As established by the Ordinary and Extraordinary General Meeting of Shareholders held on April 29th, 2022, the Board of Directors shall determine the opportunity, modality, terms, and other conditions of dividends to shareholders.
·As of June 16, 2022, according to the resolution of the Ordinary and Extraordinary General Meeting held on April 29th, 2022, and the Meeting of the Board of Directors held on June 16th, 2022, the following dividends payment schedule was approved:

Every time the dividend is available, the corresponding payment notice shall be issued, informing the following: i) the amount to be made available to shareholders; ii) the amount per share; and iii) if the dividend payable is subject to some form of tax deduction.

Regarding instalments 1 to 7, as from July 6, 2022 the provision and payment of a dividend in the amount of AR$ 7.7 billion representing AR$ 12.5339 per share, shall be made available to the shareholders registered in the stock register of the Bank on July 5, 2022.

For further information refer to the relevant event on the Investor Relations’ website on the Financial information > CNV filings.

·As of June 16, 2022, the Board of Directors of Banco BBVA Argentina S.A. accepted today the resignation of the Regular Director Alfredo Castillo Triguero as from today. Thus, it was expressly stated that such resignation was not intentional or untimely but due to his application for the retirement and pension benefits. Thus, we inform that at the aforementioned meeting, the Board has decided to make modifications within the Front Line Management. In this regard, Mrs. Monica Gabriela Etcheverry was appointed to be in charge of the Directorate of Internal Control and Compliance.
·Con fecha 24 de junio de 2022, el Directorio designó en reemplazo del Sr. Alfredo Castillo Triguero al Sr. Javier Pérez Cardete, quien revestía el carácter de Director Suplente, como Director Titular hasta la próxima asamblea anual ordinaria. El Directorio ha resuelto reemplazar al Sr. Alfredo Castillo Triguero por el Sr. Javier Pérez Cardete, en el Comité de Auditoría CNV/BCRA.
·As of June 24, 2022, the Board of Directors decided to replace Mr. Alfredo Castillo Triguero with Mr. Javier Pérez Cardete, who was acting as Alternate Director and shall serve as Regular Director until the next General Meeting of Shareholders in accordance with Section 10 of the By-laws. At that Meeting, the Board decided to replace Mr. Alfredo Castillo Triguero with Mr. Javier Pérez Cardete, on the CNV/BCRA Audit Committee.
   
  24
 
 

As of July 19, 2022, in relation to instalment 8, from August 3, 2022, a dividend in the amount of $ 1.1 billion, shall be made available to the shareholders registered in the stock register of the Bank on August 2, 2022. For further information refer to the relevant event on the Investor Relations’ website on the Financial information > CNV filings.

·As of August 22, 2022, in relation to instalment 9, from September 7, 2022, a dividend in the amount of $ 1.1 billion, shall be made available to the shareholders registered in the stock register of the Bank on September 6, 2022. For further information refer to the relevant event on the Investor Relations’ website on the Financial information > CNV filings.

Digital Transformation

Digitalization continued to accelerate during 2Q22. Active digital client total more than 2.2 million with a 62.0% penetration over total active clients (3.55 million), versus a penetration of 61.9% in 2Q21. Active mobile clients reach 1.9 million, representing a 54.4% penetration in 2Q22, versus a penetration of 52.4% in 2Q21. Digital and mobile transactions6 increased 16.7% in 2Q22 YoY.

On 2Q22, retail digital sales measured in units reached 82.0% of total sales (vs. 78.6% in 2Q21) and represent 54.4% of the Banks total sales measured in monetary value (vs. 53.1% in 2Q21).

In 2Q22, new client acquisition through digital channels over traditional ones was 66%, while it was 70% on 2Q21.

SMEs Productive investment financing credit lines – June 2021

As of June 30, 2022, total loans granted by the Bank regarding 2020, 2021 and 2021/2022 quotas, and the 2022 quota complied with what was requested by the BCRA pursuant to Communications “B” 12162, “B” 12164 and “B” 12238 respectively.

Main Regulatory Changes

Monetary policy rate, time deposits. (Communication “A” 7527, 16/06/2022). The BCRA replaces the applicable percentages (over LELIQ rates) for the determination of minimum time deposit rates for the following: time deposits made by individuals which do not exceed the amount of $10 million: 101.92% (53% nominal annual), deposits not included in the previous item: 96.15% (50% nominal annual), available for time deposits granted as of June 21, 2022.

Regarding Productive Investment Credit Lines for SMEs, for financing granted as of June 21, 2022, maximum rates were increased: from 35% to 42% (nominal annual) to investment project financing, and from 43% to 52.50% (nominal annual) for working capital and discounted instruments financing.

Lastly, as of July 2022, interest rates for credit card financing (up to $200,000) rises to 57% (nominal annual).

On the same date, it has increased the monetary policy rate (28-day LELIQ) increased 300 bps from 49% to 52%

 

5 Calculation parameters were modified as of 1Q22

6 Includes online and mobile banking, Net Cash online & mobile.

   
  25
 
 

Financing of foreign purchases made in instalments. (Communication “A” 7535, 30/06/2022). As of July 4, 2022, financial institutions and non-financial credit providers cannot finance purchases in instalments of their clients: a) of tickets and touristic services abroad and b) products abroad that are received through postal delivery services with no commercial purposes according to Customs’ Office Code, nor international courier services and custom paperwork agents.

Minimum reserve requirements. Modifications. (Communication “A” 7536, 30/06/2022). The BCRA decreases the reserve requirement rate over time deposits (from 32% to 25% points on a residual term of up to 29 days, and from 22% to 14% for up to 59 days). It also revokes the reduction related to the location of branches and distance deposits. It enables non- Group A financial institutions to integrate the requirement with Bonte 27 bonds (except for sight deposits and unencumbered balances, which only apply for Group A institutions). It allows to integrate sight deposits with LELIQs (Group A: 4 percentage points, rest: 10 percentage points). It removes non-credit linked deductions: financial inclusion (TCUME, Echeq, ATM operability), ATM withdrawals continues to be considered until December 31, 2022. Removal of deduction top over financial inclusion loans (3% of concepts subject to requirement). It removes special requirement rates for Group C institutions.

Minimum reserve requirement. Public securities. (Communication “A” 7545, 12/07/2022). As of July 13, 2022, the minimum duration of public securities required for reserve requirement is reduced from 120 to 90 days.

Put options on National Treasury securities issued as of July 2022, issued by the BCRA and participation in the secondary market of Treasury bonds. (Communication “A” 7546, 12/07/2022). The BCRA announced that it will be enabled to organize public biddings of put options over Treasury bonds issued as of July 2022 (and which mature before December 31, 2023). Contracts can be exercised any time until its maturity, which will be 15 days prior to the maturity of the collateral. Also, the BCRA will continue to participate in the secondary market to reduce volatility of Treasury instruments, and for debt instruments issued as of July 2022, with bid positions with prices similar to primary market value and a maximum spread of 2%.

Interest rate corridor. (Press release, 14/07/2022). The BCRA decided to design for its monetary and financial policy an interest rate corridor made by the short term Treasury Note rate, the monetary policy rate represented by the 28-day LELIQ and the 1-day REPO rate. The BCRA REPO rate will be the lower limit and the Treasury note rate, the upper limit.

Non-financial public sector financing. (Communication “A” 7549, 21/07/2022). The exclusion of financial assistance aimed at payroll payments from non-financial public sector financing limits is extended until January 31, 2023. Overdrafts standing as of February 1, 2023 will be subject to credit limits.

Tourists access to financial U.S dollar rate. (Communication “A” 7551, 21/07/2022). The BCRA stated that institutions authorized to participate in the FX market will be allowed to receive foreign currency bills from non-resident tourists in order to carry out, on their behalf, the purchase of securities with foreign currency settlement to then sell them on Argentine peso settlement, while they account for a sworn affidavit where they prove their non-resident tourist condition, and that, during the prior 30 days, have not done any transactions in the equivalent of USD 5,000.

CEDEAR position limit. (Communication “A” 7552. 21/07/2022). The BCRA modified the complementary requirements for the FX market outflows, and now states a limit position of USD 100,000 in CEDEARs (“Certificados de Depósitos Argentinos” or Argentine Depositary Receipts) to be able to access the official FX market. Until August 19, 2022, financial institutions can take into account these CEDEARs purchased before July 21, as a situation where it is admitted that external assets and/or CEDEAR altogether exceed the required amount. Lastly, those securities cannot be transacted during 90 days prior and 90 days after accessing the FX market.

Issuance of Internal Argentine Republic Central Bank Notes in USD with Argentine peso settlement at the Com. “A” 3500 FX rate (LEDIV) at zero rate. (Communication “A” 7557, 27/07/2022). The BCRA issues Internal Argentine Republic Central Bank Notes in USD with Argentine peso settlement at the Com. “A” 3500 FX rate (LEDIV) at zero rate. Financial institutions with deposit portfolios at floating rates linked to the wholesale U.S. Dollar FX, will be able to bid in the primary market. The top position will be set by the amount of these kind of deposits. At subscribers’ request, the BCRA will recall the LEDIVs as of 48 hours from its issuance, enabling the bidder to request an anticipated call of part or the total position before their maturity.

Interest rates in credit transactions. (Communication “A” 7559, 28/07/2022). The BCRA stated that the interest rate limit to credit card financing will not be applicable when the statement records consumptions in foreign currency above USD 200, non withstanding the established limit in art. 16 of Credit card law no. 25,065.

   
  26
 
 

Minimum time deposit rate. Productive investment financing to SMEs. Minimum reserve requirement. Credit card rate financing. (Communication “A” 7561, 28/07/2022). The BCRA raised the applicable percentages (over LELIQ rates) for the determination of minimum time deposit rates for the following: time deposits made by individuals which do not exceed the amount of $10 million: 101.67% (61% nominal annual), deposits not included in the previous item: 90% (54% nominal annual), available for time deposits granted as of July 29, 2022.

Regarding Productive Investment Credit Lines for SMEs, for financing granted as of July 29, 2022, maximum rates were increased: from 42% to 50% (nominal annual) to investment project financing, and from 52.50% to 58% (nominal annual) for working capital and discounted instruments financing. Reserve requirement deduction for these financings is now 40.00%.

Lastly, as of August 2022, interest rates for credit card financing (up to $200,000) rises from 57% to 62% (nominal annual).

On the same date, it has increased the monetary policy rate (28-day LELIQ) increased from 52% to 60%.

Minimum time deposit rate. Productive investment financing to SMEs. Minimum reserve requirement. Credit card rate financing. (Communication “A” 7577, 12/08/2022). The BCRA raised the applicable percentages (over LELIQ rates) for the determination of minimum time deposit rates for the following: time deposits made by individuals which do not exceed the amount of $10 million: 100% (69.50% nominal annual), deposits not included in the previous item: 87.70% (61% nominal annual), available for time deposits granted as of August 29, 2022.

Regarding Productive Investment Credit Lines for SMEs, for financing granted as of August 29, 2022, maximum rates were increased: from 50% to 59% (nominal annual) to investment project financing, and from 58% to 69% (nominal annual) for working capital and discounted instruments financing. Reserve requirement deduction for these financings is now 40.00%.

Lastly, as of September 2022, interest rates for credit card financing (up to $200,000) rises from 62% to 71.50% (nominal annual).

On the same date, it has increased the monetary policy rate (28-day LELIQ) increased from 60% to 69.50%

   
  27
 
 

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.

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.

   
  28
 
 

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

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

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

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

 

Other terms

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

N/A: not applicable.

Bps: basis points.

   
  29
 
 

Balance Sheet

BALANCE SHEET BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
Assets          
Cash and deposits in banks 185,377 233,394 325,225  (20.6%)  (43.0%)
Cash 76,181 87,546 97,107  (13.0%)  (21.5%)
 Financial institutions and correspondents 109,196 145,848 228,118  (25.1%)  (52.1%)
BCRA 96,918 135,982 221,704  (28.7%)  (56.3%)
Other local and foreign financial institutions 12,278   9,866   6,414  24.4%  91.4%
Debt securities at fair value through profit or loss   20,133   12,178  7,416   65.3% 171.5%
Derivatives  432  1,168  4,323  (63.0%)  (90.0%)
Repo transactions 115,822   79,084 172,616   46.5%  (32.9%)
Other financial assets   20,815   25,479   25,006  (18.3%)  (16.8%)
Loans and other financing 511,746 476,040 503,305  7.5%  1.7%
Non-financial public sector  3  1 -  200.0%  N/A 
B.C.R.A  3  4 -  (25.0%)  N/A 
Other financial institutions   5,214   5,356   3,882  (2.7%)  34.3%
Non-financial private sector and residents abroad 506,526 470,679 499,423  7.6%  1.4%
Other debt securities 427,767 421,853 252,154  1.4%   69.6%
Financial assets pledged as collateral   25,527   27,104   27,351 (5.8%) (6.7%)
Current income tax assets  791  2,740  7,922  (71.1%)  (90.0%)
Investments in equity instruments  524  602  3,488  (13.0%)  (85.0%)
Investments in subsidiaries and associates  2,614  2,638  3,364 (0.9%)  (22.3%)
Property and equipment   68,720   68,374   67,603  0.5%  1.7%
Intangible assets  5,870  5,382  3,892  9.1%   50.8%
Deferred income tax assets  1,040  1,179  1,067  (11.8%) (2.5%)
Other non-financial assets   17,731   13,727   12,253   29.2%   44.7%
Non-current assets held for sale  411  411  464 -  (11.4%)
Total Assets  1,405,320  1,371,353  1,417,449   2.5%  (0.9%)
Liabilities          
Deposits 974,101 935,264 998,847  4.2% (2.5%)
Non-financial public sector 14,543 20,423 11,678  (28.8%)  24.5%
Financial sector   289   343   715  (15.7%)  (59.6%)
Non-financial private sector and residents abroad 959,269 914,498 986,454 4.9%  (2.8%)
Derivatives  147  384  233  (61.7%)  (36.9%)
Other financial liabilities   78,988   81,396   76,896 (3.0%)  2.7%
Financing received from the B.C.R.A. and other financial institutions   20,556   14,549   15,932   41.3%   29.0%
Corporate bonds issued  395  527  1,428  (25.0%)  (72.3%)
Current income tax liabilities  245  642  134  (61.8%)   82.8%
Provisions  6,872  6,820   10,391  0.8%  (33.9%)
Deferred income tax liabilities   4   13,574  5,625   (100.0%)  (99.9%)
Other non-financial liabilities   90,055   90,455   90,031 (0.4%)  0.0%
Total Liabilities  1,171,363  1,143,611  1,199,517   2.4%  (2.3%)
Equity          
Share Capital  613  613  613 - -
Non-capitalized contributions   54,227   54,227   54,227 - -
Capital adjustments   38,954   38,954   38,954 - -
Reserves 122,291   95,509 104,700   28.0%   16.8%
Retained earnings   7   26,812   (2,060)   (100.0%) 100.3%
Other accumulated comprehensive income   (7,147)  2,503   (134)   (385.6%)  n.m 
Income for the period   20,925  4,911   17,312 326.1%   20.9%
Equity attributable to owners of the Parent 229,870 223,529 213,612 2.8% 7.6%
Equity attributable to non-controlling interests   4,087   4,213   4,320  (3.0%)  (5.4%)
Total Equity  233,957  227,742  217,932   2.7%   7.4%
Total Liabilities and Equity  1,405,320  1,371,353  1,417,449   2.5%  (0.9%)

 

   
  30
 
 

Balance Sheet – Five quarters

BALANCE SHEET BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted          
  2Q22 1Q22 4Q21 3Q21 2Q21
Assets          
Cash and deposits in banks   185,377   233,394   297,281   296,000   325,225
Cash  76,181  87,546   101,098  73,730  97,107
 Financial institutions and correspondents   109,196   145,848   196,183   222,270   228,118
B.C.R.A  96,918   135,982   193,314   217,564   221,704
Other local and foreign financial institutions  12,278  9,866  2,869  4,706  6,414
Debt securities at fair value through profit or loss  20,133  12,178 1,902 9,828 7,416
Derivatives 432 1,168 3,835 4,870 4,323
Repo transactions   115,822  79,084   187,275   163,198   172,616
Other financial assets  20,815  25,479  19,981  29,372  25,006
Loans and other financing   511,746   476,040   516,070   491,152   503,305
Non-financial public sector 3 1 1 1   -
B.C.R.A 3 4   -   -   -
Other financial institutions  5,214  5,356  5,732  5,162  3,882
Non-financial private sector and residents abroad   506,526   470,679   510,337   485,989   499,423
Other debt securities   427,767   421,853   251,868   260,051   252,154
Financial assets pledged as collateral  25,527  27,104  27,613  24,026  27,351
Current income tax assets 791 2,740 3,069 3,117 7,922
Investments in equity instruments 524 602 3,019 3,219 3,488
Investments in subsidiaries and associates 2,614 2,638 2,793 2,932 3,364
Property and equipment  68,720  68,374  69,330  66,874  67,603
Intangible assets 5,870 5,382 5,004 4,289 3,892
Deferred income tax assets 1,040 1,179 1,193 1,001 1,067
Other non-financial assets  17,731  13,727  11,986  11,405  12,253
Non-current assets held for sale 411 411 411 464 464
Total Assets   1,405,320   1,371,353   1,402,630   1,371,798   1,417,449
Liabilities          
Deposits   974,101   935,264   964,414   946,501   998,847
Non-financial public sector  14,543  20,423  18,073  15,313  11,678
Financial sector  289  343  296  308  715
Non-financial private sector and residents abroad   959,269   914,498   946,045   930,880   986,454
Liabilities at fair value through profit or loss   -   -   -   71   -
Derivatives 147 384 428 528 233
Other financial liabilities  78,988  81,396  83,859  81,799  76,896
Financing received from the B.C.R.A. and other financial institutions  20,556  14,549  16,009  16,303  15,932
Corporate bonds issued 395 527 685 683 1,428
Current income tax liabilities 245 642 482 293 134
Provisions 6,872 6,820 7,642 7,914  10,391
Deferred income tax liabilities  4  13,574  11,177 7,392 5,625
Other non-financial liabilities  90,055  90,455  96,534  87,629  90,031
Total Liabilities   1,171,363   1,143,611   1,181,230   1,149,113   1,199,517
Equity          
Share Capital 613 613 613 613 613
Non-capitalized contributions  54,227  54,227  54,227  54,227  54,227
Capital adjustments  38,954  38,954  38,954  38,955  38,954
Reserves   122,291  95,509  95,509   104,700   104,700
Retained earnings  7  26,812  (2,060)  (2,060)  (2,060)
Other accumulated comprehensive income  (7,147) 2,503 949  (466)  (134)
Income for the period  20,925 4,911  28,842  22,384  17,312
Equity attributable to owners of the Parent   229,870   223,529   217,034   218,353   213,612
Equity attributable to non-controlling interests  4,087  4,213  4,366  4,332  4,320
Total Equity 233,957 227,742 221,400 222,685 217,932
Total Liabilities and Equity   1,405,320   1,371,353   1,402,630   1,371,798   1,417,449


   
  31
 
 

Balance Sheet – Foreign Currency Exposure

FOREIGN CURRENCY EXPOSURE BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
Assets          
Cash and deposits in banks  158,955  183,497  208,625  (13.4%)  (23.8%)
Debt securities at fair value through profit or loss   1,227   869 1 41.2%  n.m 
Other financial assets   5,918   6,160   4,118 (3.9%) 43.7%
Loans and other financing 38,006 24,650 62,544 54.2%  (39.2%)
Other financial institutions  -  -   514  N/A    (100.0%)
  Non-financial private sector and residents abroad 38,004 24,650 62,030  54.2%   (38.7%)
Other debt securities 3,383 2,610 236  29.6%  n.m 
Financial assets pledged as collateral   6,945   6,792   8,105   2.3%  (14.3%)
Investments in equity instruments  35  42  51  (16.7%)  (31.4%)
Total foreign currency assets   214,469   224,620   283,680  (4.5%)   (24.4%)
Liabilities          
Deposits  194,945  204,344  267,793 (4.6%)  (27.2%)
  Non-Financial Public Sector 6,501 8,413 6,116   (22.7%)  6.3%
  Financial Sector   53   53   95 -   (44.2%)
  Non-financial private sector and residents abroad  188,391  195,878  261,582  (3.8%)   (28.0%)
Other financial liabilities 15,356 16,203 18,191 (5.2%)  (15.6%)
Financing received from the  B.C.R.A. and other financial institutions   513   584   5,721  (12.2%)  (91.0%)
Other non financial liabilities   6,046   5,324   1,932 13.6%  212.9%
Total foreign currency liabilities   216,860   226,455   293,637  (4.2%)   (26.1%)
           
Foreign Currency Net Position - AR$   (2,391)   (1,835)   (9,957)   (30.3%)  76.0%
           
Foreign Currency Net Position - USD  (19)  (17)   (104)   (15.5%)  81.6%
*Wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500, as of the end of period.

   
  32
 
 

Income Statement

INCOME STATEMENT BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  2Q22 1Q22 2Q21 QoQ YoY
Interest income 99,622 80,961 71,610 23.0% 39.1%
Interest expense  (45,312)  (34,945)  (31,752)  (29.7%)  (42.7%)
Net interest income  54,310  46,016  39,858  18.0%  36.3%
Fee income 14,393 15,196 15,639 (5.3%) (8.0%)
Fee expenses (4,087) (7,413) (6,737) 44.9% 39.3%
Net fee income  10,306 7,783 8,902  32.4%  15.8%
Net income from financial instruments at fair value through P&L   1,343   4,793   2,054  (72.0%)  (34.6%)
Net loss from write-down of assets at amortized cost and fair value through OCI   567   (40)   (27)  n.m   n.m 
Foreign exchange and gold gains   1,557   2,007   1,937  (22.4%)  (19.6%)
Other operating income   3,317   3,958   2,971  (16.2%) 11.6%
Loan loss allowances (2,455) (2,661) (3,486)   7.7% 29.6%
Net operating income  68,945  61,856  52,209  11.5%  32.1%
Personnel benefits  (12,707)  (10,633)  (10,428)  (19.5%)  (21.9%)
Administrative expenses  (12,260)  (11,161) (9,639) (9.8%)  (27.2%)
Depreciation and amortization (1,721) (1,918) (1,948) 10.3% 11.7%
Other operating expenses  (10,254) (9,097) (9,123)  (12.7%)  (12.4%)
Operating expenses   (36,942)   (32,809)   (31,138)   (12.6%)   (18.6%)
Operating income  32,003  29,047  21,071  10.2%  51.9%
Income from associates and joint ventures   218 (313)   285  169.6%  (23.5%)
Income from net monetary position  (23,788)  (21,970)  (14,322) (8.3%)  (66.1%)
Income before income tax 8,433 6,764 7,034  24.7%  19.9%
Income tax   7,455 (2,033)   4,806  466.7% 55.1%
Income for the period  15,888 4,731  11,840  235.8%  34.2%
Owners of the parent  16,014 4,911  11,838  226.1%  35.3%
Non-controlling interests   (126)   (180)   2  30.0%  n.m 
           
Other comprehensive Income (1)   (9,642) 1,546  101  n.m   n.m 
Total comprehensive income 6,246 6,277  11,941  (0.5%)   (47.7%)
(1) Net of Income Tax.

   
  33
 
 

Income Statement – Six month accumulated

INCOME STATEMENT - 6 MONTH ACCUMULATED BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted      
  2022 2021 ∆ %
Interest income  180,583  138,393 30.5%
Interest expense  (80,257)  (59,330)  (35.3%)
Net interest income   100,326  79,063  26.9%
Fee income 29,589 29,608 (0.1%)
Fee expenses  (11,500)  (14,602) 21.2%
Net fee income  18,089  15,006  20.5%
Net income from financial instruments at fair value through P&L   6,136   4,966 23.6%
Net loss from write-down of assets at amortized cost and fair value through OCI   527   (87)  n.m 
Foreign exchange and gold gains   3,564   3,567 (0.1%)
Other operating income   7,275   5,785 25.8%
Loan loss allowances (5,116) (6,968) 26.6%
Net operating income   130,801   101,332  29.1%
Personnel benefits  (23,340)  (21,053)  (10.9%)
Administrative expenses  (23,421)  (19,340)  (21.1%)
Depreciation and amortization (3,639) (3,894)   6.5%
Other operating expenses  (19,351)  (17,579)  (10.1%)
Operating expenses   (69,751)   (61,866)   (12.7%)
Operating income  61,050  39,466  54.7%
Income from associates and joint ventures   (95)   232   (140.9%)
Income from net monetary position  (45,758)  (28,060)  (63.1%)
Income before income tax  15,197  11,638  30.6%
Income tax   5,422   5,601 (3.2%)
Income for the period  20,619  17,239  19.6%
Owners of the parent  20,925  17,312  20.9%
Non-controlling interests   (306)  (73) (319.2%)
       
Other comprehensive Income (OCI) (1)   (8,096)   (295)  n.m 
Total comprehensive income  12,523  16,944   (26.1%)
(1) Net of Income Tax.
   
  34
 
 

Income Statement – Five quarters
INCOME STATEMENT BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted          
  2Q22 1Q22 4Q21 3Q21 2Q21
Interest income 99,622 80,961 76,115 78,087 71,610
Interest expense  (45,312)  (34,945)  (30,392)  (34,259)  (31,752)
Net interest income  54,310  46,016  45,724  43,828  39,858
Fee income 14,393 15,196 15,752 15,506 15,639
Fee expenses (4,087) (7,413) (7,819) (6,222) (6,737)
Net fee income  10,306 7,783 7,934 9,284 8,902
Net income from financial instruments at fair value through P&L   1,343   4,793 (308)   1,284   2,054
Net loss from write-down of assets at amortized cost and fair value through OCI   567   (40)   (24)   (56)   (27)
Foreign exchange and gold gains   1,557   2,007   2,218   1,757   1,937
Other operating income   3,317   3,958   2,857   2,375   2,971
Loan loss allowances (2,455) (2,661) (605) (3,683) (3,486)
Net operating income  68,945  61,856  57,796  54,789  52,209
Personnel benefits  (12,707)  (10,633)  (10,504)  (11,075)  (10,428)
Administrative expenses  (12,260)  (11,161)  (11,611)  (13,206) (9,639)
Depreciation and amortization (1,721) (1,918) (1,913) (1,793) (1,948)
Other operating expenses  (10,254) (9,097) (9,974) (8,799) (9,123)
Operating expenses   (36,942)   (32,809)   (34,002)   (34,873)   (31,138)
Operating income  32,003  29,047  23,794  19,916  21,071
Income from associates and joint ventures   218 (313) (156) (133)   285
Income from net monetary position  (23,788)  (21,970)  (13,924)  (12,432)  (14,322)
Income before income tax 8,433 6,764 9,714 7,351 7,034
Income tax   7,455 (2,033) (3,223) (2,269)   4,806
Income for the period  15,888 4,731 6,492 5,082  11,840
Owners of the parent  16,014 4,911 6,458 5,072  11,838
Non-controlling interests   (126)   (180) 34 12   2
           
Other comprehensive Income (OCI)(1)   (9,650) 1,554 1,415   (332)  169
Total comprehensive income 6,238 6,285 7,907 4,750  12,009
(1) Net of Income Tax.

 

   
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Ratios

QUARTERLY ANNUALIZED RATIOS BBVA ARGENTINA CONSOLIDATED
In %       ∆ bps
  2Q22 1Q22 2Q21 QoQ YoY
Profitability          
Efficiency Ratio 70.4% 72.2% 67.9%   (180)bps  250 bps
Efficiency Ratio (excl. Inflation adjustments) 43.2% 43.3% 47.1%  (10)bps   (390)bps
ROA 4.6% 1.4% 3.4%  320 bps  120 bps
ROE 28.3% 9.0% 22.2%  1,930 bps  610 bps
Liquidity         -
Liquid assets / Total Deposits 76.7% 79.6% 75.7%   (296)bps 93 bps
Capital         -
Regulatory Capital Ratio 22.88% 23.54% 23.26%  (66)bps  (38)bps
TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) 22.73% 23.31% 22.64%  (58)bps   9 bps
Asset Quality         -
Total non-performing portfolio / Total portfolio 1.08% 1.29% 2.49%  (21)bps   (141)bps
Allowances  /Total non-performing portfolio  219.39% 219.73% 187.87%  (34)bps  3,152 bps
Cost of Risk 1.94% 2.11% 2.61%  (17)bps  (67)bps

 

ACCUMULATED ANNUALIZED RATIOS BBVA ARGENTINA CONSOLIDATED
In %        ∆ bps
  2Q22 1Q22 2Q21 QoQ YoY
Profitability          
Efficiency Ratio 71.30% 72.20% 70.10%  (90)bps  120 bps
Efficiency Ratio (excl. Inflation adjustments) 43.30% 43.30% 48.50% -   (520)bps
ROA 3.00% 1.40% 2.50%  160 bps 50 bps
ROE 18.90% 9.00% 16.50%  990 bps  240 bps
Liquidity       - -
Liquid assets / Total Deposits 76.68% 79.64% 75.75%   (296)bps 93 bps
Capital       - -
Regulatory Capital Ratio 22.88% 23.54% 23.26%  (66)bps  (38)bps
TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) 22.73% 23.31% 22.64%  (58)bps   9 bps
Asset Quality       - -
Total non-performing portfolio / Total portfolio 1.08% 1.29% 2.49%  (21)bps   (141)bps
Allowances  /Total non-performing portfolio  219.39% 219.73% 187.87%  (34)bps  3,152 bps
Cost of Risk 2.03% 2.11% 2.62% (7)bps  (59)bps
   
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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

Ernesto Gallardo

Chief Financial Officer

Inés Lanusse

Investor Relations Officer

Belén Fourcade

Investor Relations

 

investorelations-arg@bbva.com

ir.bbva.com.ar

 

 

   
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SIGNATURES

 

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

 

    Banco BBVA Argentina S.A.
Date: August 23, 2022   By: /s/ Ernesto Gallardo Jimenez
        Name: Ernesto Gallardo Jimenez
        Title: Chief Financial Officer