Banco BBVA Argentina S.A. announces Second Quarter 2023 results

Rhea-AI Summary

BBVA Argentina's 2Q23 net income of $30.4 billion is 63.3% higher than 1Q23 and 11.4% lower than 2Q22. Operating income in 2Q23 was $125.3 billion, 28.6% above 1Q23 and 81.7% over 2Q22. Total consolidated financing to the private sector in 2Q23 totaled $1.1 trillion, practically stable compared to 1Q23. Total consolidated deposits in 2Q23 totaled $2.0 trillion, increasing 3.3% during the quarter. Non-performing loan ratio reached 1.38% with a 218.44% coverage ratio. The accumulated efficiency ratio in 2Q23 was 56.6%. Regulatory capital ratio was 28.4% with a $369.5 billion excess over minimum requirement.

Positive

• BBVA Argentina's net income in 2Q23 increased significantly compared to the previous quarter. Operating income also showed strong growth in 2Q23. Total consolidated financing and deposits remained stable or increased during the quarter. Non-performing loan ratio improved with a high coverage ratio. The accumulated efficiency ratio decreased in 2Q23. Regulatory capital ratio exceeded the minimum requirement.

Negative

• BBVA Argentina's net income in 2Q23 was lower than the same quarter in the previous year. Total consolidated financing to the private sector contracted compared to 2Q22. Total consolidated deposits fell in the year.

BUENOS AIRES, Aug. 23, 2023 /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 (2Q23), ended on June 30, 2023. 

As of January 1, 2020, the Bank started to inform its inflation adjusted results pursuant to IAS 29 reporting. To facilitate comparison, figures of comparable quarters of 2022 and 2023 have been updated according to IAS 29 reporting to reflect the accumulated effect of inflation adjustment for each period up to June 30, 2023.

2Q23 Highlights

• BBVA Argentina's inflation adjusted net income in 2Q23 was $30.4 billion, 63.3% greater than the $18.6 billion reported on the first quarter of 2023 (1Q23), and 11.4% lower than the $34.3 billion reported on the second quarter of 2022 (2Q22). BBVA Argentina's inflation adjusted net income for the first half of 2023 (2H23) totaled $49.0 billion, 10.1% higher than the $44.5 billion reported in the first half of 2022 (2H22).
• In 2Q23, BBVA Argentina posted an inflation adjusted average return on assets (ROAA) of 3.9% and an inflation adjusted average return on equity (ROAE) of 21.3%. In 2H23, BBVA Argentina posted an inflation adjusted ROAA of 3.2% and an inflation adjusted ROAE of 17.7%.
• Operating income in 2Q23 was $125.3 billion, 28.6% above the $97.5 billion recorded in 1Q23 and 81.7% over the $69.0 billion recorded in 2Q22. In 2H23, operating income was $222.8 billion, 69.3% above the $131.6 billion recorded in 2H22.
• In terms of activity, total consolidated financing to the private sector in 2Q23 totaled $1.1 trillion, remaining practically stable with a mild fall of 0.3% in real terms compared to 1Q23, and contracting 3.5% compared to 2Q22. In the quarter, the variation was mainly driven by a decline in overdrafts by 37.5%, offset by an increase in discounted instruments and other loans by 18.3% and 9.0% respectively. BBVA's consolidated market share of private sector loans reached 9.01% as of 2Q23.
• Total consolidated deposits in 2Q23 totaled $2.0 trillion, increasing 3.3% in real terms during the quarter, and falling 4.3% in the year. Quarterly increase was mainly explained by sight deposits, which grew 8.3%. The Bank's consolidated market share of private deposits reached 7.03% as of 2Q23.
• As of 2Q23, the non-performing loan ratio (NPL) reached 1.38%, with a 218.44% coverage ratio.
• The accumulated efficiency ratio in 2Q23 was 56.6%, below 1Q23's 62.4%, and 2Q22's 71.3%.
• As of 2Q23, BBVA Argentina reached a regulatory capital ratio of 28.4%, entailing a $369.5 billion or 247.4% excess over minimum regulatory requirement. Tier I ratio was 28.0%.
• Total liquid assets represented 84.1% of the Bank's total deposits as of 2Q23. 

2Q23 Conference Call
Thursday, 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
Conference ID: BBVA
Webcast & Replay: click here

To access the full report  English version - Spanish version
To access webcast presentation 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

Carmen Morillo Arroyo
Chief Financial Officer
Inés Lanusse
Investor Relations Officer
Belén Fourcade
Investor Relations

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

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SOURCE Banco BBVA Argentina S.A.