Banco BBVA Argentina S.A. announces Second Quarter 2020 results

Rhea-AI Summary

Banco BBVA Argentina reported its 2Q20 results, revealing an inflation-adjusted net income of $2.6 billion, marking a 21.9% decline from 1Q20 and a 70.1% decrease year-over-year. The bank achieved an inflation-adjusted return on assets (ROA) of 1.9% and a return on equity (ROE) of 10.9%. Total financing to the private sector increased 5.4% from the previous quarter but fell 5.0% compared to last year. Total deposits rose 8.0% in real terms but dropped 8.3% year-over-year. The non-performing loan (NPL) ratio stood at 1.56%, with a coverage ratio of 269.38%.

Positive

• Total consolidated financing to the private sector reached $250.4 billion, a 5.4% increase from 1Q20.
• The bank's regulatory capital ratio was 21.9%, significantly exceeding minimum requirements by $53.2 billion.

Negative

• Net income of $2.6 billion in 2Q20 was 21.9% lower than 1Q20 and 70.1% lower than 2Q19.
• Total deposits decreased 8.3% year-over-year.
• Private sector loan market share was 8.54%, which indicates competitive pressure.

BUENOS AIRES, Argentina, Aug. 25, 2020 /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 second quarter (2Q20), ended on June 30, 2020.

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 2019 have been updated according to IAS 29 reporting to reflect the accumulated effect of inflation adjustment for each period up to June 30, 2020.

2Q20 Highlights

• BBVA Argentina's inflation adjusted net income in 2Q20 was $2.6 billion, 21.9% lower than the $3.3 billion reported in the first quarter of 2020 (1Q20), and 70.1% lower than the $8.6 billion reported in the second quarter of 2019 (2Q19).
• In 2Q20, BBVA Argentina posted an inflation adjusted average return on assets (ROA) of 1.9% and an inflation adjusted average return on equity (ROE) of 10.9%.
• In terms of activity, total consolidated financing to the private sector in 2Q20 totaled $250.4 billion, increasing in real terms 5.4% or $12.8 billion compared to 1Q20, and contracting 5.0% or $13.3 billion compared to 2Q19. In the quarter, growth was driven by Other loans (mainly company loans or "Préstamos a Interés Vencido") and Discounted instruments, increasing 63.2% and 9.0% respectively. BBVA's consolidated market share of private sector loans was 8.54% as of 2Q20.
• Total deposits grew 8.0% in real terms during the quarter, and decreased 8.3% in the year. The Bank's consolidated market share of private deposits was 6.5% as of 2Q20.
• As of 2Q20, the non-performing loan ratio (NPL) reached 1.56%, with a 269.38% coverage ratio.
• The accumulated efficiency ratio in 2Q20 was 47.4%, remaining stable compared to 1Q20's 47.4%.
• As of 2Q20, BBVA Argentina reached a regulatory capital ratio of 21.9%, entailing a $53.2 billion or 167.6% excess over minimum regulatory requirement. Tier I ratio was 21.2%. Total liquid assets represented 63.8% of the Bank's total deposits as of 2Q20.

2Q20 Conference Call
Wednesday August 26, 2020, at 12:00 pm Buenos Aires time – (11:00am EST)
To participate, please dial in:
+ 54-11-3984-5677 (Argentina)
+ 1-844-450-3851 (U.S. Toll free)
+ 1-412-317-6373 (International)
Web Phone: LINK 
Conference ID: BBVA
Webcast & Replay: link

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

FAQ

What were Banco BBVA Argentina's net income figures for 2Q20?

Banco BBVA Argentina reported an inflation-adjusted net income of $2.6 billion for 2Q20.

How did BBVA Argentina's total deposits change in 2Q20?

Total deposits grew by 8.0% in real terms during 2Q20 but decreased by 8.3% year-over-year.

What was the non-performing loan ratio for BBVA Argentina in 2Q20?

The non-performing loan ratio for BBVA Argentina in 2Q20 reached 1.56%.

What was the regulatory capital ratio for BBVA Argentina as of 2Q20?

As of 2Q20, BBVA Argentina's regulatory capital ratio was 21.9%.

How much was the total financing to the private sector in 2Q20?

Total consolidated financing to the private sector was $250.4 billion in 2Q20.