Banco BBVA Argentina S.A. announces First Quarter 2021 results

Rhea-AI Summary

Banco BBVA Argentina S.A. (BBAR) reported a 50.8% increase in inflation-adjusted net income to $3.0 billion for 1Q21, compared to $2.0 billion in 1Q20. The average return on assets (ROAA) stood at 1.6%, while return on equity (ROAE) was 10.5%. Total private sector financing decreased by 9.5% from 4Q20, totaling $296.8 billion, and total deposits fell by 6.0% in real terms, amounting to $507.8 billion. The non-performing loan ratio (NPL) was 1.72%, with a 275.22% coverage ratio. The efficiency ratio worsened to 72.5% from 59.3% in 1Q20.

Positive

• Inflation-adjusted net income increased by 50.8% to $3.0 billion.
• ROAA stands at 1.6%, and ROAE at 10.5%.
• Regulatory capital ratio is strong at 22.4%, exceeding minimum requirements by $69.2 billion.

Negative

• Total financing to the private sector contracted by 9.5% compared to 4Q20.
• Total deposits decreased by 6.0% in real terms in 1Q21.
• Efficiency ratio increased to 72.5%, indicating deteriorating operational performance.

BUENOS AIRES, Argentina, May 26, 2021 /PRNewswire/ -- 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 first quarter (1Q21), ended on March 31, 2021. 

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 2020 have been updated according to IAS 29 reporting to reflect the accumulated effect of inflation adjustment for each period up to March 31, 2021.

1Q21 Highlights

• BBVA Argentina's inflation adjusted net income in 1Q21 was $3.0 billion, 50.8% greater than the $2.0 billion reported in the first quarter of 2020 (1Q20).
• In 1Q21, BBVA Argentina posted an inflation adjusted average return on assets (ROAA) of 1.6% and an inflation adjusted average return on equity (ROAE) of 10.5%.
• In terms of activity, total consolidated financing to the private sector in 1Q21 totaled $296.8 billion, contracting in real terms 9.5% compared to the fourth quarter of 2020 (4Q20), and 7.7% compared to 1Q20. In the quarter, contraction was driven by the fall in credit cards, other loans and overdrafts by 7.5%, 16.1% and 32.9% respectively. BBVA's consolidated market share of private sector loans was 8.23% as of 1Q21.
• Total consolidated deposits in 1Q21 totaled $507.8 billion, contracting 6.0% in real terms during the quarter, and expanding 8.5% in the year. The quarterly contraction is mainly explained by sight deposits, especially checking accounts in pesos, which fell 19.0%. The Bank's consolidated market share of private deposits was 6.90% as of 1Q21.
• As of 1Q21, the non-performing loan ratio (NPL) reached 1.72%, with a 275.22% coverage ratio.
• The accumulated efficiency ratio in 1Q21 was 72.5%, above 1Q20's 59.3%.
• As of 1Q21, BBVA Argentina reached a regulatory capital ratio of 22.4%, entailing a $69.2 billion or 173.3% excess over minimum regulatory requirement. Tier I ratio was 21.7%.
• Total liquid assets represented 72.0% of the Bank's total deposits as of 1Q21.

1Q21 Conference Call
Thursday, May 27, 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
Conference ID: BBVA
Webcast & Replay: click here

To access the full report please click here

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

investorelations-arg@bbva.com 
ir.bbva.com.ar

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SOURCE Banco BBVA Argentina S.A.

FAQ

What were Banco BBVA Argentina's net income figures for 1Q21?

Banco BBVA Argentina reported an inflation-adjusted net income of $3.0 billion for 1Q21.

How did BBAR's return on assets and equity perform in 1Q21?

In 1Q21, BBAR's average return on assets (ROAA) was 1.6% and return on equity (ROAE) was 10.5%.

What was the change in BBVA Argentina's private sector financing in 1Q21?

Private sector financing decreased by 9.5% compared to the previous quarter, totaling $296.8 billion.

What was the non-performing loan ratio for BBAR in 1Q21?

The non-performing loan ratio for BBAR reached 1.72% in 1Q21.

How did the efficiency ratio change for BBVA Argentina?

The efficiency ratio rose to 72.5% in 1Q21, compared to 59.3% in 1Q20.