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

Rhea-AI Summary

Banco BBVA Argentina S.A. reported its 3Q20 results, highlighting an inflation adjusted net income of $2.83 billion, a 2.9% increase from 2Q20 but a significant 65.4% decrease from 3Q19. Total financing to the private sector contracted by 4.1% compared to the previous quarter, while total deposits fell 0.6% in real terms. The non-performing loan ratio stood at 1.16% with a coverage ratio of 355.26%. The regulatory capital ratio was reported at 23.3%, exceeding the minimum requirement. The efficiency ratio was 58.0%, indicating an increase in operational costs.

Positive

• Net income in 3Q20 rose 2.9% from 2Q20.
• Regulatory capital ratio at 23.3%, well above minimum requirements.
• Non-performing loan ratio at 1.16% with a coverage ratio of 355.26%.

Negative

• Net income down 65.4% compared to 3Q19.
• Total consolidated financing to the private sector down 4.1% from 2Q20.
• Total deposits contracted 0.6% in real terms during the quarter.
• Efficiency ratio increased to 58.0%, indicating rising operational costs.

BUENOS AIRES, Argentina, Nov. 24, 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 third quarter (3Q20), ended on September 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 September30, 2020.

3Q20 Highlights

• BBVA Argentina's inflation adjusted net income in 3Q20 was $2.83 billion, 2.9% greater than the $2.75 billion reported in the second quarter of 2020 (2Q20) and 65.4% lower than the $8.19 billion reported in the third quarter of 2019 (3Q19).
• In 3Q20, BBVA Argentina posted an inflation adjusted average return on assets (ROAA) of 1.9% and an inflation adjusted average return on equity (ROAE) of 11.0%.
• In terms of activity, total consolidated financing to the private sector in 3Q20 totaled $258.6 billion, contracting in real terms 4.1% compared to 2Q20, and 10.6% compared to 3Q19. In the quarter, contraction was driven by the fall in overdrafts and loans for the prefinancing and financing of exports which decreased 41.0% and 27.6% respectively, partially offset by an increase in pledge loans, discounted instruments and credit cards, growing 17.1%, 15.7% and 10.8% respectively. BBVA's consolidated market share of private sector loans was 8.25% as of 3Q20.
• Total deposits contracted 0.6% in real terms during the quarter, and expanded 6.5% in the year. The Bank's consolidated market share of private deposits was 6.48% as of 3Q20.
• As of 3Q20, the non-performing loan ratio (NPL) reached 1.16%, with a 355.26% coverage ratio.
• The accumulated efficiency ratio in 3Q20 was 58.0%, above 2Q20's 54.7%.
• As of 3Q20, BBVA Argentina reached a regulatory capital ratio of 23.3%, entailing a $61.9 billion or 184.5% excess over minimum regulatory requirement. Tier I ratio was 22.6%. Total liquid assets represented 66.0% of the Bank's total deposits as of 3Q20.

3Q20 Conference Call
Wednesday, November 25, 2020. At 12:00 p.m. Buenos Aires time – (10:00 a.m. EST)
To participate, please dial in:
+1-844-450-3851 (US Toll-Free) 
+1-412-317-6373 (International)  
+54-11-3984-5677 (Argentina) 
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

View original content:http://www.prnewswire.com/news-releases/banco-bbva-argentina-sa-announces-third-quarter-2020-results-301180120.html

SOURCE Banco BBVA Argentina S.A.

FAQ

What were Banco BBVA Argentina's 3Q20 net income figures?

BBVA Argentina's inflation adjusted net income for 3Q20 was $2.83 billion.

How does BBVA Argentina's 3Q20 performance compare to 3Q19?

In 3Q20, net income decreased by 65.4% compared to 3Q19.

What is the non-performing loan ratio for BBVA Argentina as of 3Q20?

The non-performing loan ratio for BBVA Argentina was 1.16% as of 3Q20.

What was the regulatory capital ratio for BBVA Argentina in 3Q20?

BBVA Argentina reported a regulatory capital ratio of 23.3% in 3Q20.

How much did total deposits change in 3Q20 for BBVA Argentina?

Total deposits contracted by 0.6% in real terms in 3Q20.