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

Rhea-AI Summary

Banco BBVA Argentina S.A. (BBAR) reported a significant increase in its inflation-adjusted net income for 2Q21, reaching $7.2 billion, a 119.3% increase from 1Q21 and 14.3% from 2Q20. The bank's average return on assets (ROAA) was 3.4%, with a return on equity (ROAE) of 22.2%. Total financing to the private sector declined by 2.9% from 1Q21, while total deposits increased by 8.1% in real terms. The non-performing loan ratio was 2.49%, with a coverage ratio of 187.88%. BBVA Argentina maintains a robust regulatory capital ratio of 23.3%.

Positive

• Inflation-adjusted net income increased to $7.2 billion, up 119.3% from 1Q21.
• Average return on assets (ROAA) at 3.4% and return on equity (ROAE) at 22.2%.
• Total deposits rose 8.1% in real terms, driven by a significant increase in sight deposits.

Negative

• Total consolidated financing to the private sector contracted by 2.9% from 1Q21.
• Market share of private sector loans decreased to 8.21%.

BUENOS AIRES, Argentina, Aug. 24, 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 second quarter (2Q21), ended on June 30, 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 and 2021 have been updated according to IAS 29 reporting to reflect the accumulated effect of inflation adjustment for each period up to June 30, 2021.

2Q21 Highlights

• BBVA Argentina's inflation adjusted net income in 2Q21 was $7.2 billion, 119.3% greater than the $3.3 billion reported on the first quarter of 2021 (1Q21), and 14.3% greater than the $6.3 billion reported on the second quarter of 2020 (2Q20).
  
  
• In 2Q21, BBVA Argentina posted an inflation adjusted average return on assets (ROAA) of 3.4% and an inflation adjusted average return on equity (ROAE) of 22.2%.
  
  
• In terms of activity, total consolidated financing to the private sector in 2Q21 totaled $319.9 billion, contracting in real terms 2.9% compared to 1Q21, and 15.0% compared to 2Q20. In the quarter, changes were mainly driven by the fall in credit cards, other loans and overdrafts by 4.3%, 6.6% and 17.7% respectively. BBVA's consolidated market share of private sector loans was 8.21% as of 2Q21.
  
  
• Total consolidated deposits in 2Q21 totaled $609.1 billion, increasing 8.1% in real terms during the quarter, and 8.6% in the year. Quarterly growth is mainly explained by sight deposits, especially checking accounts and savings accounts, which increased 21.2% and 6.2% respectively. The Bank's consolidated market share of private deposits was 7.41% as of 2Q21.
  
  
• As of 2Q21, the non-performing loan ratio (NPL) reached 2.49%, with a 187.88% coverage ratio.
  
  
• The accumulated efficiency ratio in 2Q21 was 70.1%, below 1Q21's 72.5%, and above 2Q20's 56.0%.
  
  
• As of 2Q21, BBVA Argentina reached a regulatory capital ratio of 23.3%, entailing a $78.8 billion or 184.5% excess over minimum regulatory requirement. Tier I ratio was 22.6%.
  
  
• Total liquid assets represented 75.7% of the Bank's total deposits as of 2Q21.

2Q21 Conference Call
Wednesday, August 25, 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

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 BBVA Argentina's 2Q21 net income results?

BBVA Argentina reported an inflation-adjusted net income of $7.2 billion for 2Q21, a 119.3% increase from 1Q21.

How did BBVA Argentina's total deposits change in 2Q21?

Total deposits increased by 8.1% in real terms during 2Q21.

What is BBVA Argentina's non-performing loan ratio as of 2Q21?

The non-performing loan ratio (NPL) reached 2.49% as of 2Q21.

What was the regulatory capital ratio for BBVA Argentina in 2Q21?

BBVA Argentina reported a regulatory capital ratio of 23.3% as of 2Q21.

How much did private sector financing decline in 2Q21 for BBVA Argentina?

Total consolidated financing to the private sector declined by 2.9% compared to 1Q21.