6-K 1 bbarpr1q22_6k.htm FORM 6-K
 

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

 

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

 

 

For the month of May 2022

 

Commission File Number: 001-12568

 

 

BBVA Argentina Bank S.A.

(Translation of registrant’s name into English)

 

111 Córdoba Av, C1054AAA

Buenos Aires, Argentina

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

Form 20-F

X

   Form 40-F
 

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

 

Yes
 
   No

X

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

 

Yes
 
   No

X

 

Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

 

Yes
 
   No

X

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

 
 
 

 

 

Banco BBVA Argentina S.A.

 

 

TABLE OF CONTENTS

 

 

Item

  
   
1. Banco BBVA Argentina S.A. reports consolidated first quarter earnings for fiscal year 2022.
   
   

 

 
 

 

 
 

 

 

 
 

 

 

 
 

 

 

 
 

 

Banco BBVA Argentina S.A. announces First Quarter 2022 results

Buenos Aires, May 19, 2022 – 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 (1Q22), ended on March 31, 2022.

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 2021 and 2022 have been updated according to IAS 29 reporting to reflect the accumulated effect of inflation adjustment for each period up to March 31, 2022.

1Q22 Highlights

·BBVA Argentina’s inflation adjusted net income in 1Q22 was $4.0 billion, 27.1% lower than the $5.5 billion reported on the fourth quarter of 2021 (4Q21), and 12.3% lower than the $4.6 billion reported on the first quarter of 2021 (1Q21).
·In 1Q22, BBVA Argentina posted an inflation adjusted average return on assets (ROAA) of 1.4% and an inflation adjusted average return on equity (ROAE) of 9.0%.
·In terms of activity, total consolidated financing to the private sector in 1Q22 totaled $413.2 billion, decreasing 8.4% in real terms compared to 4Q21, and 10.3% compared to 1Q21. In the quarter, the decrease was mainly driven by a fall in credit cards and discounted instruments by 9.3%, and 17.8% respectively. BBVA’s consolidated market share of private sector loans reached 7.89% as of 1Q22.
·Total consolidated deposits in 1Q22 totaled $797.3 billion, decreasing 3.0% in real terms during the quarter, and increasing 1.2% in the year. Quarterly decrease was mainly explained by sight deposits, which fell 9.6%. The Bank’s consolidated market share of private deposits reached 7.12% as of 1Q22.
·As of 1Q22, the non-performing loan ratio (NPL) reached 1.29%, with a 219.75% coverage ratio.
·The accumulated efficiency ratio in 1Q22 was 72.2%, above 4Q21’s 69.1%, and slightly below 1Q21’s 72.5%.
·As of 1Q22, BBVA Argentina reached a regulatory capital ratio of 23.5%, entailing a $110.1 billion or 188.2% excess over minimum regulatory requirement. Tier I ratio was 23.3%.
·Total liquid assets represented 79.6% of the Bank’s total deposits as of 1Q22.

 

Message from the CFO

“The COVID-19 pandemic situation continued to improve through the first quarter of 2022, despite the Omicron variant which took place during January. This has allowed the continuity of the economic recovery, although within a challenging context of sustained high inflation and a capped foreign exchange rate, in spite of the agreement settled with the International Monetary Fund (March 2022).

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BBVA Research, as of the date of this report, estimates that after a 10.3% growth in 2021, GDP growth in Argentina could be around 3.5% by the end of 2022, and forecasts a moderation in growth of up to 2.0% in 2023. The financial system continues to operate in a persistently high inflation context. Inflation rate in 1Q22 reached 16.1% compared to 10.2% in 4Q21. Year over year inflation in March 2022 reached 55.1%. In this scenario, chances are inflation will remain high.

Regarding BBVA Argentina, operating income in 1Q22 is a consequence of an improvement in interest income, income from the sale of the Bank’s participation in Prisma Medios de Pago S.A., and lower administrative expenses.

As of March 2022, BBVA Argentina reached an NPL for private loans of 1.29%, quite below the system which was at 4.2% according to the last information available (February 2022). Concerning liquidity and solvency indicators, the Bank ends the quarter with 79.6% and 23.5% respectively, levels which undoubtedly allow to address business growth in the case of an economic recovery.

It is worth mentioning that the Shareholders’ Meeting on April 29, 2022, approved the payment of dividends to non-resident shareholders in securities, with the option of opting out and informing their decision to receive them in Argentine pesos. The Bank has requested the authorization for the payment of $13.2 billion, in line with BCRA requirements. It also delegated on the Board of directors the power to determine the conditions of payment of dividends to shareholders, according to Central Bank’s prior authorization.

With respect to digitalization, our service offering has evolved in such way that by the end of March 2022, digital client penetration reached 62% keeping stable versus a year back, while that of mobile clients reached 54% from 52% in the same period. The response on the side of customers has been satisfactory, and we are convinced this is the path to pursue, in the aim of sustaining and expanding our competitive position in the financial system. In the quarter, new client acquisition through digital channels over traditional ones was 66%, while in 1Q21 it was 64%.

It should be noted that the Bank finally implemented its new benefit program “Puntos BBVA” on February 2022, thought to provide customers with exclusive benefits in experiences and tourism, in alliance with Despegar.

BBVA Argentina has a corporate responsibility with society, inherent to the Bank’s business model, which bolsters inclusion, financial education and supports scientific research and culture. The Bank works with the highest integrity, long-term vision and best practices, and is present through the BBVA Group in the main sustainability indexes.

Lastly, the Bank actively monitors its business, financial conditions and operating results, in the aim of keeping a competitive position to face contextual challenges.”

Ernesto R. Gallardo, CFO at BBVA Argentina

1Q22 Conference Call

Friday, May 20 - 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

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Safe Harbor Statement

This press release contains certain forward-looking statements that reflect the current views and/or expectations of Banco BBVA Argentina and its management with respect to its performance, business and future events. We use words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “seek,” “future,” “should” and other similar expressions to identify forward-looking statements, but they are not the only way we identify such statements. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this release. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) changes in general economic, financial, business, political, legal, social or other conditions in Argentina or elsewhere in Latin America or changes in either developed or emerging markets, (ii) changes in regional, national and international business and economic conditions, including inflation, (iii) changes in interest rates and the cost of deposits, which may, among other things, affect margins, (iv) unanticipated increases in financing or other costs or the inability to obtain additional debt or equity financing on attractive terms, which may limit our ability to fund existing operations and to finance new activities, (v) changes in government regulation, including tax and banking regulations, (vi) changes in the policies of Argentine authorities, (vii) adverse legal or regulatory disputes or proceedings, (viii) competition in banking and financial services, (ix) changes in the financial condition, creditworthiness or solvency of the customers, debtors or counterparties of Banco BBVA Argentina, (x) increase in the allowances for loan losses, (xi) technological changes or an inability to implement new technologies, (xii) changes in consumer spending and saving habits, (xiii) the ability to implement our business strategy and (xiv) fluctuations in the exchange rate of the Peso. The matters discussed herein may also be affected by risks and uncertainties described from time to time in Banco BBVA Argentina’s filings with the U.S. Securities and Exchange Commission (SEC) and Comisión Nacional de Valores (CNV). Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as the date of this document. Banco BBVA Argentina is under no obligation and expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Information

This earnings release has been prepared in accordance with the accounting framework established by the Central Bank of Argentina (“BCRA”), based on International Financial Reporting Standards (“I.F.R.S.”) and the resolutions adopted by the International Accounting Standards Board (“I.A.S.B”) and by the Federación Argentina de Consejos Profesionales de Ciencias Económicas (“F.A.C.P.E.”), with the exception of the exclusion of the application of the IFRS 9 impairment model for non-financial public sector debt instruments.

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, 2021 and 2022 have been updated according to IAS 29 reporting to reflect the accumulated effect of inflation adjustment for each period up to March 31, 2022.

The information in this press release contains unaudited financial information that consolidates, line item by line item, all of the banking activities of BBVA Argentina, including: BBVA Asset Management Argentina S.A., Consolidar AFJP-undergoing liquidation proceeding, PSA Finance Argentina Compañía Financiera S.A. (“PSA”) and Volkswagen Financial Services Compañía Financiera S.A (“VWFS”).

BBVA Consolidar Seguros S.A. is disclosed on a consolidated basis recorded as Investments in associates (reported under the proportional consolidation method), and the corresponding results are reported as “Income from associates”), same as Rombo Compañía Financiera S.A. (“Rombo”), Play Digital S.A., Openpay Argentina S.A. and Interbanking S.A.

Financial statements of subsidiaries have been elaborated as of the same dates and periods as Banco BBVA Argentina S.A.’s. In the case of consolidated companies PSA and VWFS, financial statements were prepared considering the B.C.R.A. accounting framework for institutions belonging to “Group C”, considering the model established by the IFRS 9 5.5. “Impairment” section for periods starting as of January 1, 2022.

The information published by the BBVA Group for Argentina is prepared according to IFRS, without considering the temporary exceptions established by BCRA.

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Quarterly Results

INCOME STATEMENT BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
Net Interest Income   39,229   38,978   33,422  0.6%   17.4%
Net Fee Income  6,634  6,765  5,204 (1.9%)   27.5%
Net income from measurement of financial instruments at fair value through P&L  4,086   (262)  2,482  n.m    64.6%
Net income from write-down of assets at amortized cost and at fair value through OCI  (34)  (21)  (51)  (61.9%)   33.3%
Foreign exchange and gold gains  1,712  1,892  1,389 (9.5%)   23.3%
Other operating income  3,373  2,435  2,399   38.5%   40.6%
Loan loss allowances   (2,269)   (515)   (2,968)   (340.6%)   23.6%
Net operating income   52,731   49,272   41,877  7.0%   25.9%
Personnel benefits   (9,065)   (8,955)   (9,059) (1.2%) (0.1%)
Adminsitrative expenses   (9,515)   (9,898)   (8,270)  3.9%  (15.1%)
Depreciation and amortization   (1,634)   (1,630)   (1,657) (0.2%)  1.4%
Other operating expenses   (7,754)   (8,503)   (7,209)  8.8% (7.6%)
Operarting expenses (27,968) (28,986) (26,195)  3.5% (6.8%)
Operating income   24,763   20,286   15,682   22.1%   57.9%
Income from associates   (267)   (133)  (46)   (100.8%)   (480.4%)
Income from net monetary position (18,729) (11,870) (11,711)  (57.8%)  (59.9%)
Net income before income tax   5,767  8,283  3,925  (30.4%)   46.9%
Income tax   (1,733)   (2,747)  677   36.9%   (356.0%)
Net income for the period  4,034  5,536  4,602  (27.1%)  (12.3%)
Owners of the parent  4,187  5,505  4,667  (23.9%)  (10.3%)
Non-controlling interests   (153) 29  (65)  n.m    (135.4%)
           
Other comprehensive Income (OCI) (1)  1,324  1,206   (288)  9.8%  n.m 
Total comprehensive income  5,358  6,742  4,314  (20.5%)   24.2%

BBVA Argentina 1Q22 net income was $4.0 billion, falling 27.1% or $1.5 billion quarter-over-quarter (QoQ) and 12.3% or $568 million year-over-year (YoY). This implied a quarterly ROAE of 9.0% and a quarterly ROAA of 1.4%.

Quarterly operating results are mainly explained by (i) greater interest income, (ii) higher income from measurement of financial instruments at fair value through P&L and in other operating income related to the sale of the remaining participation (49%) of the Bank in Prisma Medios de Pago S.A., and (iii) lower operating expenses.

These effects were offset by an increase in loan loss allowances, which returned to average values considering the particularly positive impacts that took place on 4Q21.

The improvement in net income from measurement of financial instruments at FV through P&L and in other operating income was mainly explained by the result of the sale of the 49% remaining position of the Bank in Prisma, which generated a total benefit before taxes of $3.5 billion. A marginal effect is also seen in the line foreign exchange and gold gains.

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Net income for the period is negatively affected by a higher income from net monetary position, given that the quarterly inflation for 1Q22 was 16.1%[1] compared to 10.2% the previous quarter.

Excluding the effect of the sale of Prisma, net income in 1Q22 would have been $1.9 billion, 66.0% lower than 4Q21 and 59.1% lower than 1Q21. This would have implied a quarterly ROAE of 4.4% and ROAA of 0.7%.

EARNINGS PER SHARE BBVA ARGENTINA CONSOLIDATED
        ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
Financial Statement information          
Net income for the period attributable to owners of the parent (in AR$ millions, inflation adjusted)  4,187  5,505  4,667  (23.9%)  (10.3%)
Total shares outstanding (1) 612,710 612,710 612,710   -   -
Market information          
Closing price of ordinary share at BYMA (in AR$)  225.0  224.3  130.0  0.3%   73.1%
Closing price of ADS at NYSE (in USD)   3.5   3.2   2.7   12.4%   29.7%
Book value per share (in AR$)   316.87   308.05   303.54  2.9%  4.4%
Price-to-book ratio (BYMA price) (%) 0.71 0.73 0.43 (2.5%)   65.8%
Earnings per share (in AR$) 6.83 8.98 7.62  (23.9%)  (10.3%)
Earnings per ADS(2) (in AR$)  20.50  26.95  22.85  (23.9%)  (10.3%)
           
(1) In thousands of shares.          
(2) Each ADS accounts for 3 ordinary shares          

 

1 Source: Instituto Nacional de Estadística y Censos (INDEC) – Consumer Price Index change between December 2021 and March 2022.

 

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Net Interest Income

NET INTEREST INCOME BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
Net Interest Income   39,229   38,979   33,422  0.6%   17.4%
Interest Income   69,020   64,888   56,932  6.4%   21.2%
From government securities   24,185   15,385   15,155   57.2%   59.6%
From private securities 95 70 36   35.7% 163.9%
Interest from loans and other financing   27,161   26,934   27,479  0.8% (1.2%)
Financial Sector  356  497  225  (28.4%)   58.2%
Overdrafts  2,380  2,516  2,771 (5.4%)  (14.1%)
Discounted Instruments  4,538  4,743  4,245 (4.3%)  6.9%
Mortgage loans  422  461  491 (8.5%)  (14.1%)
Pledge loans  1,479  1,619  1,570 (8.6%) (5.8%)
Consumer Loans  4,399  4,348  4,000  1.2%   10.0%
Credit Cards  8,064  7,555  8,235  6.7% (2.1%)
Financial leases  257  273  267 (5.9%) (3.7%)
Loans for the prefinancing and financing of exports  129  217  307  (40.6%)  (58.0%)
Other loans  5,137  4,705  5,368  9.2% (4.3%)
Premiums on reverse REPO transactions  7,410   12,531  4,836  (40.9%)   53.2%
CER/UVA clause adjustment   10,082  8,935  9,423   12.8%  7.0%
Other interest income 87  1,033   3  (91.6%)  n.m 
Interest expenses   29,791   25,909   23,510   15.0%   26.7%
Deposits   27,114   23,422   21,600   15.8%   25.5%
Checking accounts  5,207  3,421  2,838   52.2%   83.5%
Savings accounts  157  147  149  6.8%  5.4%
Time deposits and Investment accounts   21,750   19,854   18,613  9.5%   16.9%
Other liabilities from financial transactions  103  156  291  (34.0%)  (64.6%)
Interfinancial loans received  880  1,040  744  (15.4%)   18.3%
Premiums on REPO transactions   2   1 - 100.0%  N/A 
CER/UVA clause adjustment  1,692  1,290  875   31.2%   93.4%

Net interest income for 1Q22 was $39.2 billion, increasing 0.6% or $250 million QoQ, and 17.4% or $5.8 billion YoY. In 1Q22, interest income increased more than interest expense, mainly due to (i) higher income from government securities and, (ii) increases in income from CER/UVA clause adjustments. Items (i) and (ii) take place in a context of increasing interest rates, derived from sequential increases in the monetary policy rate by the BCRA[2], an increase in the inflation rate as mentioned before, and a change in regulation which allowed financial institutions to increase their BCRA liquidity bills (LELIQ) position.

In 1Q22, interest income totaled $69.0 billion, increasing 6.4% compared to 4Q21 and 21.1% compared to 1Q21. Quarterly increase is mainly driven by higher income from government securities, especially LELIQ, and an increase in CER/UVA clause adjustments (mostly on income from government securities linked to such indexes). Income from credit cards also stands out although to a lower extent. All this was offset by lower income on premiums on reverse REPO transactions (seven-day REPOs), considering such instruments were gradually removed from the market by the Central Bank.

 

2 For further details on changes in the monetary policy rate please refer to the Main Regulatory Changes section at the end of the document.

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Income from government securities increased 57.2% compared to 4Q21, and 59.6% compared to 1Q21. This is partially due to the higher position in LELIQ, given the progressive removal of REPOs with the BCRA, added to the gradual increase of the monetary policy rate, which was at 38% (nominal annual terms) at the beginning of the quarter and ended at 44.5%. 93% of these results are explained by government securities at fair value through OCI, of which 76% are BCRA securities, and 5% are securities at amortized cost (2022 National Treasury Bonds at fixed rate, used for reserve requirement integration).

Interest income from loans and other financing totaled $27.2 billion, increasing 0.8% QoQ and falling 2.1% YoY. Quarterly growth is mainly due to an increase in credit cards by 6.7% and in other loans by 9.2%. This was partially offset by a fall in interests from discounted instruments by 4.3%.

Income from CER/UVA adjustments increased 12.8% QoQ and 7.0% YoY. Quarterly growth was driven by a higher yield of CER-linked securities, taking into consideration that quarterly inflation reached 16.1% versus 10.2% the previous quarter. 65% of income from interests from CER/UVA clause adjustments is explained by interests generated by bonds linked to such indexes.

Interest expenses totaled $29.8 billion, denoting a 15.0% increase QoQ and a 26.7% increase YoY. Quarterly increase is described by higher time deposit and checking account expenses, together with higher CER/UVA adjustment expenses, partially offset by lower expenses by interfinancial loans received by the Bank’s subsidiaries.

Interests from time deposits and investment accounts explain 73.0% of interest expenses, versus 76.6% the previous quarter. These increased 9.5% QoQ and grew 16.9% YoY.

NIM

As of 1Q22, net interest margin (NIM) was 19.2%, remaining stable compared to 4Q21. In 1Q22, NIM in pesos was 19.9% and 2.5% in U.S. dollars.

ASSETS & LIABILITIES PERFORMANCE - TOTAL BBVA ARGENTINA CONSOLIDATED
In millions of AR$. Rates and spreads in annualized %                
  1Q22 4Q21 1Q21
  Average Balance Interest Earned/Paid Average Real Rate Average Balance Interest Earned/Paid Average Real Rate Average Balance Interest Earned/Paid Average Real Rate
Total interest-earning assets 826,912   69,020 33.9% 805,965   64,888 31.9% 705,203   56,932 32.7%
Debt securities 409,617   38,275 37.9% 365,879   33,530 36.4% 262,823   24,783 38.2%
Loans to customers/financial institutions 406,235   30,742 30.7% 426,293   31,270 29.1% 431,183   32,149 30.2%
Loans to the BCRA -   2 -   1 - 0.0% - - -
Other assets   11,060   1 0.0%   13,792 88 2.5%   11,197 - 0.0%
Total non interest-earning assets 325,328 - 0.0% 325,395 - 0.0% 363,550 - 0.0%
Total Assets 1,152,240   69,020 24.3% 1,131,360   64,888 22.8% 1,068,753   56,932 21.6%
Total interest-bearing liabilities 600,889   29,791 20.1% 568,123   25,909 18.1% 553,489   23,510 17.2%
Sight deposits 241,317  157 0.3% 293,666  3,568 4.8% 297,434  2,987 4.1%
Time deposits and investment accounts 269,884   23,442 35.2% 261,888   21,952 33.3% 241,856   19,853 33.3%
Debt securities issued  369 64 70.3%  360 58 63.9%  1,565  177 45.9%
Other liabilities   89,319  6,128 27.8%   12,209  331 10.8%   12,634  493 15.8%
Total non-interest-bearing liabilities 551,351 - 0.0% 563,237 - 0.0% 515,264 - 0.0%
Total liabilities and equity 1,152,240   29,791 10.5% 1,131,360   25,909 9.1% 1,068,753   23,510 8.9%
                   
NIM - Total     19.2%     19.2%     19.2%
Spread - Total     13.7%     13.8%     15.5%
                   
Nominal rates are calculated over a 365-day year                  
Does not include Net income from measurement of financial instruments at fair value through P&L nor Net income from write-down of assets at amortized cost and at fair value through OCI        
Sight deposits include savings accounts and interest-bearing checking accounts. Non interest-bearing accounts are included in non-interest-bearing liabilities.            
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ASSETS & LIABILITIES PERFORMANCE - AR$ BBVA ARGENTINA CONSOLIDATED
In millions of AR$. Rates and spreads in annualized %                
  1Q22 4Q21 1Q21
  Average Balance Interest Earned/Paid Average Real Rate Average Balance Interest Earned/Paid Average Real Rate Average Balance Interest Earned/Paid Average Real Rate
Total interest-earning assets 795,510   68,802 35.1% 765,266   64,614 33.5% 651,516   56,319 35.1%
Debt securities 406,710   38,273 38.2% 365,229   33,530 36.4% 262,817   24,783 38.2%
Loans to customers/financial institutions 382,456   30,527 32.4% 393,690   30,998 31.2% 386,059   31,536 33.1%
Loans to the BCRA -   2 #DIV/0!   1 - 0.0% - - #DIV/0!
Other assets  6,344 - 0.0%  6,346 86 5.4%  2,640 - 0.0%
Total non interest-earning assets 162,666 - 0.0% 150,140 - 0.0% 175,610 - 0.0%
Total Assets 958,176   68,802 29.1% 915,406   64,614 28.0% 827,126   56,319 27.6%
Total interest-bearing liabilities 468,384   29,767 25.8% 420,488   25,843 24.4% 382,290   23,437 24.9%
Savings accounts 127,116  155 0.5% 168,783  3,566 8.4% 155,321  2,984 7.8%
Time deposits 252,620   23,434 37.6% 242,249   21,944 35.9% 216,668   19,831 37.1%
Debt securities issued  369 64 70.3%  360 58 63.9%  1,565  177 45.9%
Other liabilities   88,279  6,114 28.1%  9,096  275 12.0%  8,736  445 20.7%
Total non-interest-bearing liabilities 488,013 - 0.0% 497,275 - 0.0% 446,313 - 0.0%
Total liabilities and equity 956,397   29,767 12.6% 917,763   25,843 11.2% 828,603   23,437 11.5%
                   
NIM - AR$     19.9%     20.1%     20.5%
Spread - AR$     9.3%     9.1%     10.2%
                   
Nominal rates are calculated over a 365-day year                  
Does not include Net income from measurement of financial instruments at fair value through P&L nor Net income from write-down of assets at amortized cost and at fair value through OCI        
Sight deposits include savings accounts and interest-bearing checking accounts. Non interest-bearing accounts are included in non-interest-bearing liabilities.            

 

ASSETS & LIABILITIES PERFORMANCE - FOREIGN CURRENCY BBVA ARGENTINA CONSOLIDATED
In millions of AR$. Rates and spreads in annualized %                
  1Q22 4Q21 1Q21
  Average Balance Interest Earned/Paid Average Real Rate Average Balance Interest Earned/Paid Average Real Rate Average Balance Interest Earned/Paid Average Real Rate
Total interest-earning assets   31,402  218 2.8%   40,699  274 2.7%   53,687  613 4.6%
Debt securities  2,907   2 0.3%  650 - 0.0%   6 - 0.0%
Loans to customers/financial institutions   23,779  215 3.7%   32,603  272 3.3%   45,124  613 5.5%
Other assets  4,716   1 0.1%  7,446   2 0.1%  8,557 - 0.0%
Total non interest-earning assets 162,662 - 0.0% 175,255 - 0.0% 187,940 - 0.0%
Total Assets 194,064  218 0.5% 215,954  274 0.5% 241,627  613 1.0%
Total interest-bearing liabilities 132,505 24 0.1% 147,635 66 0.2% 171,199 73 0.2%
Savings accounts 114,201   2 0.0% 124,883   2 0.0% 142,113   3 0.0%
Time deposits and Investment accounts   17,264   8 0.2%   19,639   8 0.2%   25,188 22 0.4%
Other liabilities  1,040 14 5.5%  3,113 56 7.1%  3,898 48 5.0%
Total non-interest-bearing liabilities   63,338 - 0.0%   65,962 - 0.0%   68,951 - 0.0%
Total liabilities and equity 195,843 24 0.0% 213,597 66 0.1% 240,150 73 0.1%
                   
NIM - Foreign currency     2.5%     2.0%     4.1%
Spread - Foreign currency     2.7%     2.5%     4.5%
                   
Nominal rates are calculated over a 365-day year                  
Does not include Net income from measurement of financial instruments at fair value through P&L nor Net income from write-down of assets at amortized cost and at fair value through OCI        
Sight deposits include savings accounts and interest-bearing checking accounts. Non interest-bearing accounts are included in non-interest-bearing liabilities.            

Net Fee Income

NET FEE INCOME BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
Net Fee Income  6,634  6,765  5,204 (1.9%)   27.5%
Fee Income   12,955   13,429   11,909 (3.5%)  8.8%
Linked to liabilities  5,329  5,026  4,760  6.0%   12.0%
From credit cards  5,425  6,213  5,119  (12.7%)  6.0%
Linked to loans  996  905  687   10.1%   45.0%
From insurance  560  546  597  2.6% (6.2%)
From foreign trade and foreign currency transactions  513  557  598 (7.9%)  (14.2%)
Other fee income  132  182  148  (27.5%)  (10.8%)
Fee expenses  6,321  6,665  6,705 (5.2%) (5.7%)
8 
 

Net fee income as of 1Q22 totaled $6.6 billion, falling 1.9% or $131 million QoQ and increasing 27.5% or $1.4 billion YoY.

In 1Q22, fee income totaled $13.0 billion, falling 3.5% QoQ and growing 8.8% YoY. The quarterly fall is mainly explained by a decline in income from credit cards, especially due to contrast against 4Q21 and seasonal year-end consumption. The negative effect was offset by an increase in fees linked to liabilities due to an increase in prices of account and packaged accounts’ maintenance.

Regarding fee expenses, these totaled $6.3 billion, contracting 5.2% QoQ and 5.7% YoY. Lower expenses in the quarter are partially explained by lower expenditures linked to the strategy of payroll business acquisition and expenses on credit and debit cards.

Net Income from Measurement of Financial Instruments at Fair Value and Foreign Exchange and Gold Gains/Losses

NET INCOME FROM FINANCIAL INSTRUMENTS AT FAIR VALUE (FV) THROUGH P&L BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
Net Income from financial instruments at FV through P&L  4,086   (262)  2,482  n.m    64.6%
Income from write-down  or sale of financial assets  2,615 - -  N/A   N/A 
Income from government securities  695  548  938   26.8%  (25.9%)
Income from private securities  130  (14)   (312)  n.m  141.7%
Interest rate swaps (1)   6 -   (116.7%)  N/A 
Gains from foreign currency forward transactions  649  571  1,852   13.7%  (65.0%)
Income from put option long position  - Prisma Medios de Pago -   (1,372) - 100.0%  N/A 
Income from debt and equity instruments   1 (1)   4 200.0%  (75.0%)
Other (3) - -  N/A   N/A 

In 1Q22, net income from financial instruments at fair value (FV) through P&L was $4.1 billion, increasing 1,659.5% or $4.3 billion QoQ and 64.6% or $1.6 billion YoY.

These results are mainly explained by the sale procedure of the Bank’s remaining position in Prisma. As of March 18, 2022, the transfer of the whole remaining stock participation of the Bank in Prisma Medios de Pago S.A. was completed for a price of USD 40 million. This generated profit of $2.6 billion in the Income from write-down or sale of financial assets line item.

There have also been increases in the income from government securities line item, especially due to the greater position and interest rate generated by the LELIQ portfolio.

DIFFERENCES IN QUOTED PRICES OF GOLD AND FOREIGN FOREIGN CURRENCY BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
Foreign exchange and gold gains/(losses) (1)  1,712  1,892  1,389 (9.5%) 23.3%
From foreign exchange position (405) (173) (562) (134.1%) 27.9%
Income from purchase-sale of foreign currency  2,117  2,065  1,951   2.5%   8.5%
Net income from financial instruments at FV through P&L (2)  649  571  1,852 13.7%   (65.0%)
Income from foreign currency forward transactions  649  571  1,852 13.7%   (65.0%)
Total differences in quoted prices of gold & foreign currency (1) + (2)  2,361  2,463  3,241 (4.1%)   (27.2%)
9 
 

In 1Q22, the total differences in quoted prices of gold and foreign currency showed profit for $1.7 billion, falling 9.5% or $180 million compared to 4Q21, mainly due to a higher loss in from foreign exchange position line item.

Other Operating Income

OTHER OPERATING INCOME BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
Operating Income  3,373  2,435  2,399   38.5%   40.6%
Rental of safe deposit boxes (1)  515  450  442   14.4%   16.5%
Adjustments and interest on miscellaneous receivables (1)  762  701  895  8.7%  (14.9%)
Punitive interest (1) 57 59 49 (3.4%)   16.3%
Loans recovered  397  454  358  (12.6%)   10.9%
Fee income from credit and debit cards (1)  198  138 94   43.5% 110.6%
Income from initial recognition of public securities -   2 18   (100.0%)   (100.0%)
Income from sale of assets in equity instruments  840 - -  N/A   N/A 
Other Operating Income(2)  604  631  543 (4.3%)   11.3%
(1) Included in the efficiency ratio calculation          
(2) Includes some of the concepts used in the efficiency ratio calculation          

In 1Q22 other operating income totaled $3.4 billion, growing 38.5% or $938 million QoQ, and 40.6% or $974 million YoY. Quarterly growth is partially explained by an $840 million profit recorded on the Income from sale of assets in equity instruments line item, as a result from the sale procedures of the remaining stock participation of the Bank in Prisma. Additionally, there has been a 14.4% increase in the rental of safe deposit boxes line item, and an 8.7% increase in adjustments and interest on miscellaneous receivables.

10 
 

 

Operating Expenses

Personnel Benefits and Administrative Expenses

PERSONNEL BENEFITS & ADMINISTRATIVE EXPENSES BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
Total Personnel Benefits and Adminsitrative Expenses   16,479   15,982   16,580  3.1% (0.6%)
Personnel Benefits (1)  9,065  8,955  9,059  1.2%  0.1%
Administrative expenses (1)  9,515  9,898  8,270 (3.9%)   15.1%
Travel expenses 41 30 62   36.7%  (33.9%)
Outsourced administrative expenses  688  1,220  595  (43.6%)   15.6%
Security services  281  354  299  (20.6%) (6.0%)
Fees to Bank Directors and Supervisory Committee 13 30 15  (56.7%)  (13.3%)
Other fees  351  414  352  (15.2%) (0.3%)
Insurance  108  106  103  1.9%  4.9%
Rent  1,558  797  1,062   95.5%   46.7%
Stationery and supplies 26 24 28  8.3% (7.1%)
Electricity and communications  395  385  415  2.6% (4.8%)
Advertising  510  460  313   10.9%   62.9%
Taxes  2,110  2,118  1,939 (0.4%)  8.8%
Maintenance costs  974  1,137  968  (14.3%)  0.6%
Armored transportation services  1,221  1,185  1,185  3.0%  3.0%
Other administrative expenses  1,239  1,638  934  (24.4%)   32.7%
           
Headcount*          
BBVA (Bank)  5,753  5,765  5,905  (12)   (152)
Associates 99 98 99   1 -
Total employees  5,852  5,863  6,004  (11)   (152)
Branches  1,994  2,000  2,261 (6)   (267)
Main office  3,858  3,863  3,743 (5)  115
           
Total branches**  243  243  247 - (4)
           
Efficiency Ratio          
Efficiency ratio 72.2% 67.3% 72.5%  490 bps  (30)bps
Accumulated Efficiency Ratio 72.2% 69.1% 72.5%  310 bps  (30)bps
Efficiency ratio - Excl. Inflation adjustment 43.3% 48.4% 50.1%   (510)bps   (680)bps
Accumulated Efficiency Ratio - Excl. Inflation adjustment 43.3% 49.4% 50.1%   (610)bps   (680)bps
           
(1) Concept included in the efficiency ratio calculation          
*corresponds to total effective employees, net of temporary contract employees          
**do not include administrative offices. As of 1Q22, 54% owned and 46% rented.          

During 1Q22, personnel benefits and administrative expenses totaled $16.5 billion, increasing 3.1% or $497 million compared to 4Q21, and falling 0.6% or $101 million compared to 1Q21.

Personnel benefits grew 1.2% QoQ, and 0.1% YoY. The quarterly increase is partially explained by the collective wage agreement reached with the unions which established a fixed sum increase for the months of January, February and March.

11 
 

As of 1Q22, administrative expenses decreased 3.9% QoQ, and increased 15.1% YoY. The quarterly decline is partially explained by a 43.6% fall in the outsourced administrative expenses line item, and a 24.4% decrease in other administrative expenses.

The accumulated efficiency ratio as of 1Q22 was 72.2%, deteriorating compared to the 69.1% and marginally improving versus the 72.5% reported in 4Q21 and 1Q21 respectively. The quarterly weakening is explained by a higher percentage decrease in the denominator (income considering monetary position results) than the numerator (expenses), almost exclusively due to the negative impact of the income from the net monetary position, as a result of a greater quarterly inflation compared to 4Q21.

Excluding inflation adjustments considered in the income from the monetary position line item, the 1Q22 accumulated efficiency ratio would have been 43.3%, improving compared to the 49.9% of 4Q21 and the 50.1% of 1Q21.

Other Operating Expenses

OTHER OPERATING EXPENSES BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
Other Operating Expenses  7,754  8,503  7,209 (8.8%)  7.6%
Turnover tax  5,312  5,039  4,720  5.4%   12.5%
Initial loss of loans below market rate  497  746  453  (33.4%)  9.7%
Contribution to the Deposit Guarantee Fund (SEDESA)  316  332  319 (4.8%) (0.9%)
Interest on liabilities from financial lease  107  124  139  (13.7%)  (23.0%)
Other allowances  617   (308)  410 300.3%   50.5%
Loss for sale or depreciation of investment property and other non financial assets - 45 -   (100.0%)  N/A 
Other operating expenses  905  2,525  1,168  (64.2%)  (22.6%)

In 1Q22, other operating expenses totaled $7.8 billion, decreasing 8.8% or $749 million QoQ, and increasing 7.6% or $545 million YoY.

The key factor explaining the quarterly decrease in in the other operating expenses line item, with a decline of 64.2%, considering the $1.6 billion provision for reorganization recorded in 4Q21, consistent with the goal of further aligning the organizational structure with the corporate strategy during the current year, achieving efficiency gains and streamlining the decision-making process across all work teams.

The aforementioned savings are partially offset by the other allowances line item, increasing 300.3% related to the decrease in use of off-balance sheet items, and an increase in the turnover tax line item, derived from higher income from BCRA securities.

 

 

12 
 

 

Income from Associates

This line reflects the results from non-consolidated associate companies. During 1Q22, a loss of $267 million has been reported, mainly due to the Bank’s participation in BBVA Consolidar Seguros S.A., Rombo Compañía Financiera S.A., Interbanking S.A. and Play Digital S.A. and Openpay Argentina S.A.

Income Tax

Accumulated income tax during the first three months of 2022 recorded a loss of $1.7 billion. The accumulated annual effective tax rate for the first three months of 2022[3] was 30%.

Concerning the first quarter of 2021, accumulated income tax represented a positive result due to: i) having recorded a complete fiscal inflation adjustment, and ii) the reversal of a provision pursuant to BCRA instructions for the year 2016, which was funded on a favorable final sentence in court , recording a positive result in 1Q21 of $1.2 billion.

 

3 Income tax, according to IAS 34, is recorded on interim financial periods over the best estimate of the weighted average tax rate expected for the fiscal year.

13 
 

 

Balance sheet and activity

Loans and Other Financing

LOANS AND OTHER FINANCING BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
To the public sector   4   1   1 300.0% 300.0%
To the financial sector  4,792  4,935  3,472 (2.9%)   38.0%
Non-financial private sector and residents abroad 413,156 450,861 460,395 (8.4%)  (10.3%)
Non-financial private sector and residents abroad - AR$ 388,666 424,705 409,111 (8.5%) (5.0%)
Overdrafts   25,926   26,145   20,459 (0.8%)   26.7%
Discounted instruments   48,997   59,630   48,796  (17.8%)  0.4%
Mortgage loans   24,660   26,590   28,433 (7.3%)  (13.3%)
Pledge loans   17,852   21,068   18,054  (15.3%) (1.1%)
Consumer loans   45,087   47,532   47,585 (5.1%) (5.2%)
Credit cards 161,239 179,431 184,123  (10.1%)  (12.4%)
Receivables from financial leases  2,922  3,352  3,134  (12.8%) (6.8%)
Other loans   61,983   60,958   58,527  1.7%  5.9%
Non-financial private sector and residents abroad - Foreign Currency   24,490   26,156   51,284 (6.4%)  (52.2%)
Overdrafts   4   3   2   33.3% 100.0%
Discounted instruments - -  2,898  N/A    (100.0%)
Credit cards  4,272  2,959  1,785   44.4% 139.3%
Receivables from financial leases 15 28  183  (46.4%)  (91.8%)
Loans for the prefinancing and financing of exports   13,688   15,487   30,353  (11.6%)  (54.9%)
Other loans  6,511  7,679   16,063  (15.2%)  (59.5%)
           
% of total loans to Private sector in AR$ 94.1% 94.2% 88.9%  (13)bps 521 bps
% of total loans to Private sector in Foreign Currency 5.9% 5.8% 11.1%   13 bps   (521)bps
           
% of mortgage loans with UVA adjustments / Total mortgage loans (1) 75% 75% 82%   9 pbs   (721)pbs
% of pledge loans with UVA adjustments / Total pledge loans (1) 5% 6% 12%  (63)pbs   (638)pbs
% of consumer loans with UVA adjustments / Total consumer loans (1) 3% 4% 9%   (101)pbs   (637)pbs
% of loans with UVA adjustments / Total loans and other financing(1) 2% 2% 3%  (25)pbs   (153)pbs
           
Total loans and other financing 417,952 455,797 463,868 (8.3%) (9.9%)
Allowances (12,128) (15,847) (22,354)   23.5%   45.7%
Total net loans and other financing 405,824 439,950 441,514 (7.8%) (8.1%)
           

(1) Excludes effect of accrued interests adjustments. 

          

 

LOANS AND OTHER FINANCING TO NON-FINANCIAL PRIVATE SECTOR AND RESIDENTS ABROAD IN FOREIGN CURRENCY BBVA ARGENTINA CONSOLIDATED
In millions of USD       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
FX rate* 110.97 102.75  91.99   8.0% 20.6%
Non-financial private sector and residents abroad - Foreign Currency (USD)  221  219  359   0.6%   (38.6%)
*Wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500, as of the end of period.        

Private sector loans as of 1Q22 totaled $413.2 billion, decreasing 8.4% or $37.7 billion QoQ, and 10.3% or $47.2 billion YoY.

14 
 

Loans to the private sector in pesos decreased 8.5% in 1Q22, and 5.0% YoY. During the quarter, decline was especially driven by a 10.1% fall in credit cards, and a 17.8% fall in discounted instruments.

Loans to the private sector denominated in foreign currency fell 6.4% QoQ and 52.2% YoY. Quarterly decrease is mainly explained by an 11.6% fall in prefinancing and financing of exports, followed by a 15.2% fall in other loans. All the aforementioned indicates the continued lack of demand of loans in foreign currency. The decline was offset by a 44.4% increase in credit cards. Loans to the private sector in foreign currency measured in U.S. dollars increased 0.6% QoQ and fell 38.6% YoY. The depreciation of the argentine peso versus the U.S. dollar was 7.4% QoQ and 17.1% YoY[4].

In 1Q22, total loans and other financing totaled $418.0 billion, decreasing 8.3% compared to 4Q21 and 9.9% compared to 1Q21.

LOANS AND OTHER FINANCING BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
Non-financial private sector and residents abroad - Retail 253,110 277,579 279,980 (8.8%) (9.6%)
Mortgage loans   24,660   26,590   28,433 (7.3%)  (13.3%)
Pledge loans   17,852   21,068   18,054  (15.3%) (1.1%)
Consumer loans   45,087   47,532   47,585 (5.1%) (5.2%)
Credit cards 165,511 182,390 185,908 (9.3%)  (11.0%)
Non-financial private sector and residents abroad - Commercial 160,046 173,282 180,415 (7.6%)  (11.3%)
Overdrafts   25,930   26,148   20,461 (0.8%)   26.7%
Discounted instruments   48,997   59,630   51,694  (17.8%) (5.2%)
Receivables from financial leases  2,937  3,380  3,317  (13.1%)  (11.5%)
Loans for the prefinancing and financing of exports   13,688   15,487   30,353  (11.6%)  (54.9%)
Other loans   68,494   68,637   74,590 (0.2%) (8.2%)
           
% of total loans to Retail sector 61.3% 61.6% 60.8%  (30)bps   45 bps
% of total loans to Commercial sector 38.7% 38.4% 39.2%   30 bps  (45)bps

In real terms, retail loans (mortgage, pledge, consumer and credit cards) have decreased 8.8% QoQ and 9.6% YoY in real terms. During the quarter, the decrease is mainly explained by a 9.3% fall in credit cards, followed by a 15.3% fall in pledge loans.

Commercial loans (overdrafts, discounted instruments, receivables from financial leases, loans for the prefinancing and financing of exports, and other loans) fell 7.6% QoQ and 11.3% YoY both in real terms. Quarterly decrease is explained by a 17.8% decline in discounted instruments, followed by an 11.6% decrease in prefinancing and financing of exports.

Loan portfolios are mainly impacted by the effect of inflation during the first quarter of 2022, which reached 16.1%. In nominal terms, the retail, commercial and total loan portfolio all increased 6.6%, 5.9% and 6.4% respectively during the quarter, beyond real term growth.

 

4 Taking into consideration wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500.

15 
 
LOANS AND OTHER FINANCING - NON RESTATED FIGURES BBVA ARGENTINA CONSOLIDATED
In millions of AR$       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
Non-financial private sector and residents abroad - Retail 253,110 237,341 180,197  6.6%   40.5%
Non-financial private sector and residents abroad - Commercial 160,046 151,099 116,627  5.9%   37.2%
Total loans and other financing (1) 417,952 392,693 299,063  6.4%   39.8%
(1) Does not include allowances          

As of 1Q22, the total loans and other financing over deposits ratio was 52.4%, below the 55.4% recorded in 4Q21 and the 58.9% in 1Q21.

MARKET SHARE - PRIVATE SECTOR LOANS BBVA ARGENTINA CONSOLIDATED
In %       ∆ bps
  1Q22 4Q21 1Q21 QoQ YoY
Private sector loans - Bank 7.00% 7.18% 7.35%  (17)bps  (35)bps
Private sector loans - Consolidated* 7.89% 8.05% 8.23%  (16)bps  (34)bps
           
Based on daily BCRA information. Capital balance as of the last day of each quarter.          
 * Consolidates PSA, VWFS & Rombo          

LOANS BY ECONOMIC ACTIVITY BBVA ARGENTINA CONSOLIDATED
% over total gross loans and other financing       ∆ bps
  1Q22 4Q21 1Q21 QoQ YoY
Government services n.m n.m n.m   -   -
Financial Sector 1.15% 1.08% 0.75%   6 bps 40 bps
Agricultural and Livestock 4.64% 4.17% 5.33% 47 bps  (69)bps
Mining products 3.83% 3.85% 7.65% (2)bps   (383)bps
Other manufacturing 10.44% 11.00% 7.97%  (56)bps  247 bps
Electricity, oil,water and sanitary services 0.16% 0.04% 0.36% 12 bps  (20)bps
Wholesale and retail trade 5.12% 7.24% 4.33%   (212)bps 79 bps
Transport 1.06% 1.04% 0.97%   2 bps 10 bps
Services 1.95% 0.76% 0.51%  119 bps  144 bps
Others 13.92% 13.19% 14.83% 73 bps  (91)bps
Construction 0.68% 0.62% 0.70%   6 bps (2)bps
Consumer 57.06% 57.01% 56.60%   5 bps 45 bps
Total gross loans and other financing 100% 100% 100%    

16 
 

 

Asset Quality

ASSET QUALITY BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
Commercial non-performing portfolio (1)                 974              2,798              3,709           (65.2%)           (73.7%)
Total commercial portfolio          122,021          132,445          146,136             (7.9%)           (16.5%)
Commercial non-performing portfolio / Total commercial portfolio 0.80% 2.11% 2.54%         (131)bps         (174)bps
Retail non-performing portfolio (1)              4,545              5,914              4,413           (23.1%)              3.0%
Total retail portfolio          304,913          333,110          325,441             (8.5%)             (6.3%)
Retail non-performing portfolio / Total retail portfolio 1.49% 1.78% 1.36%           (28)pbs            13 pbs
Total non-performing portfolio (1)              5,519              8,712              8,122           (36.7%)           (32.0%)
Total portfolio          426,934          465,555          471,577             (8.3%)             (9.5%)
Total non-performing portfolio / Total portfolio 1.29% 1.87% 1.72%           (58)bps           (43)bps
Allowances            12,128            15,847            22,354           (23.5%)           (45.7%)
Allowances  /Total non-performing portfolio  219.75% 181.90% 275.23%       3,785 bps      (5,548)bps
Quarterly change in Write-offs               5,353              2,940                 796            82.1%  n.m 
Write offs / Total portfolio 1.25% 0.63% 0.17%            62 bps          109 bps
Cost of Risk (CoR) 2.11% 0.46% 2.47%          165 bps           (36)bps
           
(1) Non-performing loans include: all loans to borrowers classified as "Deficient Servicing (Stage 3)", "High Insolvency Risk (Stage 4)", "Irrecoverable" and/or "Irrecoverable for Technical Decision" (Stage 5) according to BCRA debtor classification system

 

In 1Q22, asset quality ratio or NPL (total non-performing portfolio / total portfolio) was 1.29%, compared to the 1.87% recorded in 4Q21. The decrease is mainly explained by a good loan portfolio behavior, mainly on the commercial side, together with a fall in the total portfolio. Both the decline on the commercial non-performing portfolio and the total portfolio are driven by write-offs in the commercial portfolio.

The coverage ratio (allowances / total non-performing portfolio) was 219.75% in 1Q22, versus the 181.90% recorded in 4Q21. The change in this ratio reflects a lower variation in allowances than in the total non-performing loan portfolio, the latter affected by commercial write-offs.

Cost of risk (loan loss allowances / average total loans) reached 2.11% as of 1Q22, above 4Q21’s 0.46%. The exceptional value recorded on 4Q21 was mainly explained by the reduction in loan loss allowances, as a result of the annual update of IFRS 9 impairment loss model parameters, and an improvement in the sovereign rating for the commercial portfolio, upgrading the commercial loan portfolio’s rating.

ANALYSIS FOR THE ALLOWANCE OF LOAN LOSSES  BBVA ARGENTINA CONSOLIDATED
In millions of AR$             
  Balance at 12/31/2021 Stage 1 Stage 2 Stage 3 Monetary result generated by allowances Balance at 03/31/2022
Other financial assets  334   8 - 13  (46)   309
Loans and other financing   15,847  481 (1)   (2,016)   (2,183) 12,128
Other debt securities 18   9 - - (3)  24
Eventual commitments  991  113 26   4   (133)   1,001
Total allowances   17,190  611 25   (1,999)   (2,365) 13,462
             
Note: to be consistent with Financial Statements, it must be recorded from the beginning of the year instead of the quarter  

Allowances for the Bank in 1Q22 reflect expected losses driven by the adoption of the IFRS 9 standards as of January 1, 2020, except for debt instruments issued by the nonfinancial government sector which were excluded from the scope of such standard.

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Public Sector Exposure

NET PUBLIC DEBT EXPOSURE BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
Treasury and Government securities 104,343   95,117   73,738  9.7%   41.5%
Treasury and National Government 104,343   95,117   73,738  9.7%   41.5%
National Treasury Public Debt in AR$ 101,939   93,239   73,738  9.3%   38.2%
National Treasury Public Debt in USD  741 - -  N/A   N/A 
National Treasury Public Debt in AR$ linked to US dollars  1,663  1,878 -  (11.5%)  N/A 
Loans to the Public Sector   4   1   1 300.0% 300.0%
AR$ Subtotal 101,943   93,240   73,739  9.3%   38.2%
USD Subtotal*  2,404  1,878   -   28.0%  N/A 
Total Public Debt Exposure 104,347   95,118   73,739  9.7%   41.5%
           
B.C.R.A. Exposure 338,518 284,651 198,854   18.9%   70.2%
Instruments 271,099 124,999 151,593 116.9%   78.8%
Leliqs 247,084 124,999 151,593   97.7%   63.0%
Notaliqs   24,014 - -  N/A   N/A 
Repo   67,419 159,652   47,261  (57.8%)   42.7%
B.C.R.A. - AR$   67,419 159,652   47,261  (57.8%)   42.7%
           
 % Public sector exposure (Excl. B.C.R.A.) / Total assets 8.9% 8.0% 6.4%   97 bps 252 bps
           
*Includes USD-linked Treasury public debt in AR$
This table does not include deposits at the Central Bank used to comply with reserve requirements.

1Q22 public sector exposure (excluding BCRA) totaled $104.3 billion, growing 9.7% or $9.2 billion QoQ, and 41.5% or $30.6 billion YoY. The quarterly increase is explained by a greater position in CER-linked treasury bonds, CER-linked treasury bills (LECER) and 2022 National Treasury Bonds at fixed rate (Bonte 22, used for reserve requirement integration), as well as U.S. dollar linked treasury bonds.

Short-term liquidity is mostly allocated in BCRA instruments, which increased 18.9% QoQ and increased 70.2% YoY in real terms. The quarterly increase is explained by a higher LELIQ position, and the addition of a new BCRA instrument, the Liquidity Notes (NOTALIQ), which are linked to the monetary policy rate.

Exposure to the public sector (excluding BCRA) represents 8.9% of total assets, above the 8.0% in 4Q21 and the 6.4% in 1Q21.

18 
 

 

Deposits

TOTAL DEPOSITS BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
Total deposits 797,314 822,163 787,662 (3.0%)  1.2%
Non-financial Public Sector   17,411   15,408   10,209   13.0%   70.5%
Financial Sector  292  252  278   15.9%  5.0%
Non-financial private sector and residents abroad 779,611 806,503 777,175 (3.3%)  0.3%
Non-financial private sector and residents abroad - AR$ 612,624 617,328 552,852 (0.8%)   10.8%
Checking accounts 200,346 197,774 159,790  1.3%   25.4%
Savings accounts 130,259 162,288 140,083  (19.7%) (7.0%)
Time deposits 202,437 182,373 198,124   11.0%  2.2%
Investment accounts    74,659   69,492   50,202  7.4%   48.7%
Other  4,924  5,400  4,654 (8.8%)  5.8%
Non-financial private sector and res. abroad - Foreign Currency 166,986 189,175 224,323  (11.7%)  (25.6%)
Checking accounts 50 27 26   83.8%   90.1%
Savings accounts 147,360 168,733 195,422  (12.7%)  (24.6%)
Time deposits   17,517   18,276   25,703 (4.2%)  (31.8%)
Other  2,059  2,139  3,171 (3.7%)  (35.1%)
           
% of total portfolio in the private sector in AR$ 78.6% 76.5% 71.1% 204 bps 744 bps
% of total portfolio in the private sector in Foregin Currency 21.4% 23.5% 28.9%   (204)bps   (744)bps
           
% of time deposits with UVA adjustments / Total AR$ Deposits 4.4% 3.9% 2.7% 45 bps  161 bps

DEPOSITS TO THE NON-FINANCIAL PRIVATE SECTOR AND RES. ABROAD IN FOREIGN CURRENCY BBVA ARGENTINA CONSOLIDATED
In millions of USD       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
FX rate*  111.0  102.8 92.0  8.0%   20.6%
Non-financial private sector and residents abroad - Foreign Currency (USD)  1,505  1,586  1,572 (5.1%) (4.3%)
*Wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500, as of the end of period.

As of 1Q22, total deposits reached $797.3 billion, falling 3.0% or $24.5 billion QoQ, and growing 1.2% or $9.7 billion YoY.

Private non-financial sector deposits in 1Q22 totaled $779.6 billion, decreasing 3.3% QoQ, and mildly growing 0.3% YoY.

Private non-financial sector deposits in pesos totaled $612.6 billion, slightly decreasing 0.8% compared to 4Q21, and increasing 10.8% compared to 1Q21. The quarterly decline is mainly affected by a fall in sight deposits, especially savings accounts. This was partially offset by an 11.0% and a 7.4% increase in time deposits and investment accounts respectively.

Private non-financial sector deposits in foreign currency expressed in pesos fell 11.7% QoQ and 25.6% YoY. Measured in U.S. dollars, these deposits fell 5.1% QoQ and 4.3% YoY.

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PRIVATE DEPOSITS BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
Non-financial private sector and residents abroad 779,611 806,503 777,175 (3.3%)  0.3%
Sight deposits 484,998 536,362 503,146 (9.6%) (3.6%)
Checking accounts 200,396 197,802 159,816  1.3%   25.4%
Savings accounts 277,619 331,021 335,504  (16.1%)  (17.3%)
Other  6,983  7,539  7,825 (7.4%)  (10.8%)
Time deposits 294,613 270,141 274,029  9.1%  7.5%
Time deposits 219,954 200,649 223,827  9.6% (1.7%)
Investment accounts   74,659   69,492   50,202  7.4%   48.7%
           
% of sight deposits over total private deposits 62.2% 66.5% 64.7%   (429)bps   (253)bps
% of time deposits over total private deposits 37.8% 33.5% 35.3% 429 bps 253 bps

 

PRIVATE DEPOSITS - NON RESTATED FIGURES BBVA ARGENTINA CONSOLIDATED
In millions of AR$       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
Sight deposits 462,105 462,105 324,387   16.4%   42.7%
Time deposits 232,741 232,741 176,672  4.2%   57.3%
Total deposits 708,336 708,336 507,820   12.3%   48.1%

As of 1Q22, the Bank’s transactional deposits (checking accounts and savings accounts) represented 61.3% of total non-financial private deposits, totaling $478.0 billion, versus 65.6% in 4Q21.

MARKET SHARE - PRIVATE SECTOR DEPOSITS BBVA ARGENTINA CONSOLIDATED
In %       ∆ bps
  1Q22 4Q21 1Q21 QoQ YoY
Private sector Deposits - Consolidated* 7.12% 6.95% 6.90% 18 pbs   5 pbs
           
Based on daily BCRA information. Capital balance as of the last day of each quarter.
 * Consolidates PSA, VWFS & Rombo

Other Sources of Funds

OTHER SOURCES OF FUNDS BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
Other sources of funds 203,372 199,253 199,045  2.1%  2.2%
Central Bank 56 53 38  6.5%   49.1%
Banks and international organizations - -  2,913  N/A    (100.0%)
Financing received from local financial institutions   12,173   13,595   12,208  (10.5%) (0.3%)
Corporate bonds  584  584  1,586   -  (63.2%)
Equity 190,559 185,022 182,300  3.0%  4.5%

In 1Q22, other sources of funds totaled $203.4 billion, growing 2.1% or $4.1 billion QoQ, and 2.2% or $4.3 billion YoY.

Quarterly increase is mostly explained by the 3.0% increase in equity.

20 
 

Liquid Assets

TOTAL LIQUID ASSETS BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
Total liquid assets 634,974 627,844 567,456  1.1%   11.9%
Cash and deposits in banks 198,969 253,432 303,598  (21.5%)  (34.5%)
Debt securities at fair value through profit or loss   10,382  1,621  7,514  n.m    38.2%
Government securities  3,050  1,621  7,514   88.2%  (59.4%)
Liquidity bills of B. C. R. A.  7,331 - -  N/A   N/A 
Net REPO transactions   67,419 159,652   47,261  (57.8%)   42.7%
Other debt securities 358,204 213,140 209,084   68.1%   71.3%
Government securities  94,437  88,141  57,491  7.1%   64.3%
Liquidity bills of B. C. R. A.   263,767   124,999   151,593 111.0%   74.0%
           
Liquid assets / Total Deposits 79.6% 76.4% 72.0% 327 bps 760 bps

In 1Q22, liquid assets were $635.0 billion, growing 1.1% or $7.1 billion compared to 4Q21, and 11.9% or $67.5 billion compared to 1Q21, mainly due to an increase in government securities at amortized cost (other debt securities), offset by a decrease in net REPO transactions.

In 4Q21, the liquidity ratio (liquid assets / total deposits) reached 79.6%. Liquidity ratio in local and foreign currency reached 76.4% and 91.2% respectively.

Solvency

MINIMUM CAPITAL REQUIREMENT BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
Minimum capital requirement   58,506   66,482   61,928  (12.0%) (5.5%)
Credit risk   41,232   48,646   46,341  (15.2%)  (11.0%)
Market risk  652  263  275 147.9% 137.1%
Operational risk   16,622   17,573   15,312 (5.4%)  8.6%
           
Integrated Capital - RPC (1)* 168,636 169,220 169,274 (0.3%) (0.4%)
Ordinary Capital Level 1 ( COn1) 191,544 186,749 192,780  2.6% (0.6%)
Deductible items COn1 (24,546) (21,822) (28,206)  (12.5%)   13.0%
Additional Capital Level 2 (COn2)  1,638  4,293  4,700  (61.8%)  (65.1%)
           
Excess Capital          
Integration excess 110,130 102,738 107,346  7.2%  2.6%
Excess as  % of minimum capital requirement 188.2% 154.5% 173.3%  3,370 bps  1,486 bps
           
Risk-weighted assets (RWA, according to B.C.R.A. regulation) (2) 716,314 813,317 757,232  (11.9%) (5.4%)
           
Regulatory Capital Ratio (1)/(2) 23.5% 20.8% 22.4% 274 pbs 119 pbs
TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) 23.3% 20.3% 21.7% 304 pbs 158 pbs
           
* RPC includes 100% of quarterly results
21 
 

BBVA Argentina continues to show strong solvency indicators on 1Q22. Capital ratio reached 23.5%, above than 4Q21’s 20.8%, mostly due to the announcement of dividend distribution on 4Q21 for $6.5 billion. Tier 1 ratio was 23.3% and capital excess over regulatory requirement was $110.1 billion or 188.2%.

BBVA Argentina Asset Management S.A.

MUTUAL FUNDS ASSETS BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
FBA Renta Pesos 204,056 204,023 208,003  0.0% (1.9%)
FBA Renta Fija Plus   20,510   19,338  7,875  6.1% 160.4%
FBA Ahorro Pesos   14,768  3,534  2,012 317.9%  n.m 
FBA Horizonte  374  428  966  (12.6%)  (61.3%)
FBA Calificado  956  1,055  763 (9.4%)   25.3%
FBA Acciones Argentinas  847  833  631  1.7%   34.2%
FBA Acciones Latinoamericanas  565  612  589 (7.7%) (4.1%)
FBA Bonos Argentina  1,553  915  461   69.7% 236.9%
FBA Bonos Globales 44  138  316  (68.1%)  (86.1%)
FBA Renta Mixta  299  339 85  (11.8%) 251.8%
FBA Gestión I 36 41 47  (12.2%)  (23.4%)
FBA Horizonte Plus 14 23 45  (39.1%)  (68.9%)
FBA Retorno Total I 19 23 42  (17.4%)  (54.8%)
FBA Renta Publica I 33 31   3  6.5%  n.m 
FBA Renta Fija Local   2   2   3   -  (33.3%)
Total assets 244,076 231,335 221,841  5.5%   10.0%

 

MARKET SHARE - MUTUAL FUNDS BBVA ASSET MANAGEMENT
In %       ∆ bps
  1Q22 4Q21 1Q21 QoQ YoY
Mutual funds 5.81% 5.53% 6.29%   (81)bps  38 bps
           
Source: Cámara Argentina de Fondos Comunes de Inversión

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Other events

Main Relevant Events

·As of March 3, 2022, the Board of Directors has resolved to convene the Annual Ordinary and Extraordinary Shareholders General Meeting for April 29, 2022.
·As of March 18, 2022, the transfer of the whole remaining position of the Bank in Prisma Medios de Pago S.A. in favor of AI ZENITH (Netherlands) B.V. (company associated to Advent International Global Private Equity) representing the 5,4496 % of the capital stock of Prisma, has been perfected. The price for such participation amounts to USD 40,038,121.84 and shall be paid as follows: (i) 30% in Pesos Adjustable by CER (UVA) at a 15% nominal annual rate and (ii) 70% in US Dollars at a nominal rate of 10% within six years.
·As of March 29, 2022, the Board of Directors of Banco BBVA Argentina S.A. accepted the resignation of the Regular Director María Isabel Goiri Lartitegui, which shall take effect when the next Meeting of Shareholders is held and her successor is appointed. Thus, it is expressly stated that such resignation was not intentional or untimely but due to personal reasons.
·As of April 12, 2022, BBVA Argentina has filed with the U.S. Securities and Exchange Commission the Annual Report on Form 20-F as of and for the year ended December 31, 2021.
·As of April 29, 2022, concerning the dividends approved by the Shareholders’ Meeting son May 15, 2020 and April 20, 2021, and the General Extraordinary Shareholders’ Meeting son November 20, 2020 and November 3, 2021, the Shareholders’ Meeting on April 29, 2022 approved: a) subject to the procedure to be informed in due course in the payment notice, the payment of the dividend to nonresident shareholders be made with marketable securities, all in accordance with the regulations in force. Notwithstanding the foregoing, it was approved to grant them the option to express their opposition, informing their decision to receive it in Argentine pesos, through a procedure to be informed in due time; b) for the purposes of the authorization request to be made to the BCRA, to estimate 20% of the profits in the amount of $13.2 billion, under the BCRA Rules; and the Board of Directors be delegated the authority to determine, once the BCRA authorization has been obtained, the timing, method, terms, securities to be delivered (if any) and other terms and conditions for the payment of dividends to the shareholders, as well as to designate authorized persons to make the necessary filings with the corresponding agencies.

Digital Transformation

Digitalization continued to accelerate during 1Q22. Active digital client total more than 2.1 million with a 61.8% penetration over total active clients (3.4[5] million), versus a penetration of 61.9% in 1Q21. Active mobile clients reach 1.8 million, representing a 54.0% penetration in 1Q22, versus a penetration of 52.3% in 1Q21. Digital and mobile transactions[6] increased 22.7% in 1Q22 YoY.

On 1Q22, retail digital sales measured in units reached 82.7% of total sales (vs. 79.0% in 1Q21) and represent 53.3% of the Banks total sales measured in monetary value (vs. 56.2% in 1Q21).

In 1Q22, new client acquisition through digital channels over traditional ones was 66%, while it was 64% on 1Q21.

 

5 Calculation parameters were modified as of 1Q22

6 Includes online and mobile banking, Net Cash online & mobile.

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SMEs Productive investment financing credit lines – March 2021

As of March 31, 2021, total loans granted by the Bank regarding 2020, 2021 and 2021/2022 quotas, complied with what was requested by the BCRA pursuant to Communications “B” 12162, “B” 12164 and “B” 12238 respectively. Within this regulation, the total amount to be granted by the bank on the 2021/2022 quota amounts to $32.4 billion, pursuant to Communication “B” 12238.

Main Regulatory Changes

Monetary policy rate, time deposits, extension of Productive Investment Credit Lines for SMEs. (Communication “A” 7474, 03/22/2022). The BCRA increased the nominal annual rate of 28-day LELIQs by 200 basis points, going from 42.5% to 44.5%. It also increased the minimum interest rates for time deposits. As of March 23, 2022, minimum applicable rates will be: for time deposits under $10 million: 97.75% (43.5% nominal annual rate), all others: 93.26% (41.5% nominal annual rate).

Concerning productive investment credit lines for SMEs, for credits granted as of March 23, 2022, maximum interest rates were increased: from 30% to 35% the nominal annual rate applicable to investment projects, and from 41% to 43% the nominal annual rate applicable to financing to working capital y discounted instruments. Lastly, as of April 2022, interest rates for credit card financing (up to $200,000) rises to 51%.

Interbanking compensation of bills (Communication “A” 7473, 03/22/2022). The BCRA overruled the regulation that allowed financial institutions to subscribe 30-day BCRA Cash Compensation Notes with cash bill positions considered of “good use”, but that should not be affected by the “Cash Interbanking Compensation” in own vaults as well as in armored transportation.

Productive Investment Credit Lines for SMEs (Communication “A” 7475, 03/22/2022). The BCRA extended until September 30, 2022, the Productive Investment Credit Lines for SMEs. It includes, as of April 1, 2022, the “2022 Quota”, with the same conditions as does the 2021/2022 quota, and applies for Group “A” institutions and those which are not in such group but work as financial agents for sovereign, provincial or municipal governments (including the Citi of Buenos Aires).

Minimum reserve requirements. Productive Investment Credit Lines for SMEs. (Communication “A” 7491, 04/13/2022). The BCRA replaces the applicable percentages for the determination of minimum time deposit rates for the following: time deposits made by individuals which do not exceed the amount of $10 million: 97.87%, deposits not included in the previous item: 93.62% (calculated over the monetary policy rate).

24 
 

Additionally, it increases to 45.50% the nominal annual fixed rate applicable to working capital financing and discounted instruments granted as of April 18, 2022 related to Productive Investment Credit Lines for SMEs.

Finally, it increases from 30% to 34% the percentage of deduction in the average peso reserve requirement from financing related to Productive Investment Credit Lines for SMEs.

On the same date, it has increased the monetary policy rate from 44.50% to 47.00%

Minimum reserve requirements. Integration with bonds. (Communication “A” 7511, 05/12/2022). The BCRA enabled financial institutions to integrate reserve requirements in pesos with National Treasury Bonds in Pesos maturing on May 23, 2027. The bonds used with this purpose will be excluded from limits provided by regulation on nonfinancial public sector financing.

Interest rates. (Communication “A” 7512, 05/12/2022). As of May 13, 2022, the BCRA replaces the applicable percentages for the determination of minimum time deposit rates for the following: time deposits made by individuals which do not exceed the amount of $10 million: 97.96%, deposits not included in the previous item: 93.96% (calculated over the monetary policy rate).

Additionally, it increases to 47.50% the nominal annual fixed rate applicable to working capital financing and discounted instruments related to Productive Investment Credit Lines for SMEs.

Lastly, as of June 2022, interest rates for credit card financing (up to $200,000) rises from 51% to 53%. On the same date, it has increased the monetary policy rate from 47.00% to 49.00%

25 
 

Glossary

Active clients: holders of at least one active product. An active product is in most cases a product with at least “one movement” in the last 3 months, or a minimum balance.

Cost of Risk (accumulated): Year to date accumulated loan loss allowances / Average total loans.

Average total loans: average between previous year-end Total loans and other financing and current period Total loans and other financing.

Cost of Risk (quarterly): Current period Loan loss allowances / Average total loans. Average total loans: average between previous quarter-end Total loans and other financing and current period Total loans and other financing.

Coverage ratio: Quarterly allowances under the Expected Credit Loss model / total non-performing portfolio.

Digital clients: we consider a customer to be an active user of online banking when they have been logged at least once within the last three months using the internet or a cell phone and SMS banking.

Efficiency ratio (Excl. inflation adjustments, accumulated): Accumulated (Personnel benefits+ Administrative expenses + Depreciation & Amortization) / Accumulated (Net Interest Income + Net Fee Income + Net Income from measurement of Financial Instruments at Fair Value through P&L + Net income from write-down of assets at amortized cost and at fair value through OCI + Foreign exchange and gold gains + some concepts included in Other net operating income).

Efficiency ratio (Excl. inflation adjustments, quarterly): (Personnel benefits+ Administrative expenses + Depreciation & Amortization) / (Net Interest Income + Net Fee Income + Net Income from measurement of Financial Instruments at Fair Value through P&L + Net income from write-down of assets at amortized cost and at fair value through OCI + Foreign exchange and gold gains + some concepts included in Other net operating income).

Efficiency ratio (accumulated): Accumulated (Personnel benefits+ Administrative expenses + Depreciation & Amortization) / Accumulated (Net Interest Income + Net Fee Income + Net Income from measurement of Financial Instruments at Fair Value through P&L + Net income from write-down of assets at amortized cost and at fair value through OCI + Foreign exchange and gold gains + some concepts included in Other net operating income+ Income from net monetary position).

Efficiency ratio (quarterly): (Personnel benefits+ Administrative expenses + Depreciation & Amortization) / (Net Interest Income + Net Fee Income + Net Income from measurement of Financial Instruments at Fair Value through P&L + Net income from write-down of assets at amortized cost and at fair value through OCI + Foreign exchange and gold gains + some concepts included in Other net operating income+ Income from net monetary position).

Liquidity Ratio: (Cash and deposits in banks + Debt securities at fair value through P&L (Excl. Private securities) + Net REPO transactions + Other debt securities (Excl. Private securities) / Total Deposits.

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Mobile clients: customers who have been active in online banking at least once in the last three months using a mobile device.

Net Interest Margin (NIM) – (quarterly): Quarterly Net Interest Income / Average quarterly interest earning assets.

Public Sector Exposure (excl. BCRA): (National and Provincial Government public debt + Loans to the public sector + REPO transactions) / Total Assets.

ROA (accumulated): Accumulated net Income of the period attributable to owners of the parent / Total Average Assets. Total Average Assets is calculated as the average between total assets on December of the previous year and total assets in the current period, expressed in local currency. Calculated over a 365-day year.

ROA (quarterly): Net Income of the period attributable to owners of the parent / Total Average Assets. Total Average Assets is calculated as the average between total assets on the previous quarter-end and total assets in the current period, expressed in local currency. Calculated over a 365-day year.

ROE (accumulated): Accumulated net Income of the period attributable to owners of the parent / Average Equity. Average Equity is calculated as the average between equity in December of the previous year and equity in the current period, expressed in local currency. Calculated over a 365-day year.

ROE (quarterly): Net Income of the period attributable to owners of the parent / Average Equity. Average Equity is calculated as the average between equity on the previous quarter end and equity in the current period, expressed in local currency. Calculated over a 365-day year.

Spread: (Quarterly Interest Income / Quarterly average Interest-earning Assets) – (Quarterly Interest Expenses / Quarterly average interest-bearing liabilities).

 

Other terms

n.m.: not meaningful. Implies an increase above 500% and a decrease below -500%.

N/A: not applicable.

Bps: basis points.

27 
 

Balance Sheet

BALANCE SHEET BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
Assets          
Cash and deposits in banks  198,969  253,432  303,598   (21.5%)   (34.5%)
Cash 74,633 86,186  102,273 (13.4%) (27.0%)
 Financial institutions and correspondents  124,336  167,246  201,325 (25.7%) (38.2%)
BCRA 115,925 164,800 194,959 (29.7%) (40.5%)
Other local and foreign financial institutions  8,411  2,446  6,366   243.9%  32.1%
Debt securities at fair value through profit or loss 10,382   1,621   7,556  n.m   37.4%
Derivatives   996   3,269   3,840   (69.5%)   (74.1%)
Repo transactions 67,419  159,652 47,261   (57.8%)  42.7%
Other financial assets 21,721 17,034 21,434  27.5% 1.3%
Loans and other financing  405,824  439,950  441,514  (7.8%)  (8.1%)
Non-financial public sector 1 1 1  -  -
B.C.R.A 3   -   -  N/A   N/A 
Other financial institutions   4,565   4,887   3,081   (6.6%)  48.2%
Non-financial private sector and residents abroad  401,255  435,062  438,432  (7.8%)  (8.5%)
Other debt securities  359,630  214,718  209,501  67.5%  71.7%
Financial assets pledged as collateral 23,106 23,540 25,817  (1.8%)   (10.5%)
Current income tax assets   2,350   2,617   2,111   (10.2%)  11.3%
Investments in equity instruments   513   2,574   3,534   (80.1%)   (85.5%)
Investments in subsidiaries and associates   2,249   2,381   2,458  (5.5%)  (8.5%)
Property and equipment 58,289 59,104 58,384  (1.4%)  (0.2%)
Intangible assets   4,588   4,266   2,958 7.5%  55.1%
Deferred income tax assets   1,005   1,017   6,492  (1.2%)   (84.5%)
Other non-financial assets 11,689 10,216 13,960  14.4%   (16.3%)
Non-current assets held for sale   351   351   396  -   (11.4%)
Total Assets  1,169,081  1,195,742  1,150,814  (2.2%)   1.6%
Liabilities          
Deposits  797,314  822,163  787,662  (3.0%) 1.2%
Non-financial public sector 17,411 15,408 10,209  13.0%  70.5%
Financial sector   292   252   278  15.9% 5.0%
Non-financial private sector and residents abroad  779,611  806,503  777,175   (3.3%) 0.3%
Derivatives   327   365   619   (10.4%)   (47.2%)
Other financial liabilities 69,565 71,490 69,663  (2.7%)  (0.1%)
Financing received from the B.C.R.A. and other financial institutions 12,229 13,647 15,159   (10.4%)   (19.3%)
Corporate bonds issued   449   584   1,586   (23.1%)   (71.7%)
Current income tax liabilities   547   411   2,464  33.1%   (77.8%)
Provisions   5,814   6,515 16,233   (10.8%)   (64.2%)
Deferred income tax liabilities 11,572   9,528   113  21.5%  n.m 
Other non-financial liabilities 77,113 82,295 71,333  (6.3%) 8.1%
Total Liabilities  974,930  1,006,998  964,832  (3.2%)   1.0%
Equity          
Share Capital   613   613   613  -  -
Non-capitalized contributions 46,229 46,229 46,229  -  -
Capital adjustments 33,118 33,118 33,118  -  -
Reserves 81,422 81,422  151,251  -   (46.2%)
Retained earnings 22,857 (1,756)  (53,319)  n.m    142.9%
Other accumulated comprehensive income   2,133   809 (259)   163.6%  n.m 
Income for the period   4,187 24,587   4,667   (83.0%)   (10.3%)
Equity attributable to owners of the Parent  190,559  185,022  182,300 3.0% 4.5%
Equity attributable to non-controlling interests   3,592   3,722   3,682   (3.5%)   (2.4%)
Total Equity  194,151  188,744  185,982   2.9%   4.4%
Total Liabilities and Equity  1,169,081  1,195,742  1,150,814  (2.2%)   1.6%
28 
 

Balance Sheet – 5 Quarters

BALANCE SHEET BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted          
  1Q22 4Q21 3Q21 2Q21 1Q21
Assets          
Cash and deposits in banks  198,969  253,432  252,341  277,255  303,598
Cash 74,633 86,186 62,855 82,784  102,273
 Financial institutions and correspondents  124,336  167,246  189,486  194,471  201,325
B.C.R.A   115,925   164,800   185,474   189,003   194,959
Other local and foreign financial institutions 8,411 2,446 4,012 5,468 6,366
Debt securities at fair value through profit or loss 10,382   1,621   8,378   6,322   7,556
Derivatives   996   3,269   4,151   3,686   3,840
Repo transactions 67,419  159,652  139,126  147,155 47,261
Other financial assets 21,721 17,034 25,039 21,318 21,434
Loans and other financing  405,824  439,950  418,707  429,068  441,514
Non-financial public sector 1 1 1   - 1
B.C.R.A 3   -   -   -   -
Other financial institutions   4,565   4,887   4,400   3,310   3,081
Non-financial private sector and residents abroad  401,255  435,062  414,306  425,758  438,432
Other debt securities  359,630  214,718  221,694  214,961  209,501
Financial assets pledged as collateral 23,106 23,540 20,482 23,316 25,817
Current income tax assets   2,350   2,617   2,658   6,754   2,111
Investments in equity instruments   513   2,574   2,744   2,974   3,534
Investments in subsidiaries and associates   2,249   2,381   2,499   2,868   2,458
Property and equipment 58,289 59,104 57,010 57,632 58,384
Intangible assets   4,588   4,266   3,656   3,318   2,958
Deferred income tax assets   1,005   1,017   854   910   6,492
Other non-financial assets 11,689 10,216   9,723 10,444 13,960
Non-current assets held for sale   351   351   396   396   396
Total Assets  1,169,081  1,195,742  1,169,458  1,208,377  1,150,814
Liabilities          
Deposits  797,314  822,163  806,893  851,518  787,662
Non-financial public sector 17,411 15,408 13,054   9,955 10,209
Financial sector   292   252   263   610   278
Non-financial private sector and residents abroad  779,611  806,503  793,576  840,953  777,175
Liabilities at fair value through profit or loss  -  -  61  -  -
Derivatives   327   365   450   198   619
Other financial liabilities 69,565 71,490 69,734 65,554 69,663
Financing received from the B.C.R.A. and other financial institutions 12,229 13,647 13,898 13,582 15,159
Corporate bonds issued   449   584   582   1,217   1,586
Current income tax liabilities   547   411   250   114   2,464
Provisions   5,814   6,515   6,747   8,859 16,233
Deferred income tax liabilities 11,572   9,528   6,301   4,796   113
Other non-financial liabilities 77,113 82,295 74,703 76,750 71,333
Total Liabilities  974,930  1,006,998  979,619  1,022,588  964,832
Equity          
Share Capital   613   613   613   613   613
Non-capitalized contributions 46,229 46,229 46,229 46,229 46,229
Capital adjustments 33,118 33,118 33,118 33,118 33,118
Reserves 81,422 81,422 89,256 89,256  151,251
Retained earnings 22,857 (1,756) (1,756) (1,756)  (53,319)
Other accumulated comprehensive income   2,133   809 (396) (113) (259)
Income for the period   4,187 24,587 19,082 14,759   4,667
Equity attributable to owners of the Parent  190,559  185,022  186,146  182,106  182,300
Equity attributable to non-controlling interests   3,592   3,722   3,693   3,683   3,682
Total Equity  194,151  188,744  189,839  185,789  185,982
Total Liabilities and Equity  1,169,081  1,195,742  1,169,458  1,208,377  1,150,814


29 
 

Balance Sheet – Foreign Currency Exposure

FOREIGN CURRENCY EXPOSURE BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
Assets          
Cash and deposits in banks 156,431 173,886 196,729  (10.0%)  (20.5%)
Debt securities at fair value through profit or loss  741 -   1  N/A   n.m 
Other financial assets  5,251  3,353  3,803   56.6%   38.1%
Loans and other financing   21,014   22,092   44,997 (4.9%)  (53.3%)
Other financial institutions -  195  457   (100.0%)   (100.0%)
  Non-financial private sector and residents abroad   21,014   21,897   44,540  (4.0%)   (52.8%)
Other debt securities  2,225  2,494  -   (10.8%)  N/A 
Financial assets pledged as collateral  5,790  6,528  7,677  (11.3%)  (24.6%)
Investments in equity instruments 36 42 45  (14.3%)  (20.0%)
Total foreign currency assets 191,488 208,395 253,252 (8.1%)  (24.4%)
Liabilities          
Deposits 174,203 192,944 227,640 (9.7%)  (23.5%)
  Non-Financial Public Sector  7,172  3,728  3,487 92.4%  105.7%
  Financial Sector 45 41 84   9.8%   (46.4%)
  Non-financial private sector and residents abroad 166,986 189,175 224,069   (11.7%)   (25.5%)
Other financial liabilities   13,813   11,926   19,609   15.8%  (29.6%)
Financing received from the  B.C.R.A. and other financial institutions  498  591  3,815  (15.7%)  (86.9%)
Other non financial liabilities  4,539  5,018  2,457 (9.5%)   84.7%
Total foreign currency liabilities 193,053 210,479 253,521 (8.3%)  (23.9%)
           
Foreign Currency Net Position - AR$   (1,565)   (2,084)   (269)   24.9%   (481.8%)
           
Foreign Currency Net Position - USD  (14)  (20) (3)   30.5%   (382.3%)
*Wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500, as of the end of period.      
30 
 

 

Income Statement

INCOME STATEMENT BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted       ∆ %
  1Q22 4Q21 1Q21 QoQ YoY
Interest income   69,020   64,888   56,932  6.4%   21.2%
Interest expense (29,791) (25,909) (23,510)  (15.0%)  (26.7%)
Net interest income   39,229   38,978   33,422  0.6%   17.4%
Fee income   12,955   13,429   11,909 (3.5%)  8.8%
Fee expenses   (6,321)   (6,665)   (6,705)  5.2%  5.7%
Net fee income  6,634  6,765  5,204 (1.9%)   27.5%
Net income from financial instruments at fair value through P&L  4,086   (262)  2,482  n.m    64.6%
Net loss from write-down of assets at amortized cost and fair value through OCI  (34)  (21)  (51)  (61.9%)   33.3%
Foreign exchange and gold gains  1,712  1,892  1,389 (9.5%)   23.3%
Other operating income  3,373  2,435  2,399   38.5%   40.6%
Loan loss allowances   (2,269)   (515)   (2,968)   (340.6%)   23.6%
Net operating income   52,731   49,272   41,877  7.0%   25.9%
Personnel benefits   (9,065)   (8,955)   (9,059) (1.2%) (0.1%)
Administrative expenses   (9,515)   (9,898)   (8,270)  3.9%  (15.1%)
Depreciation and amortization   (1,634)   (1,630)   (1,657) (0.2%)  1.4%
Other operating expenses   (7,754)   (8,503)   (7,209)  8.8% (7.6%)
Operating expenses (27,968) (28,986) (26,195)  3.5% (6.8%)
Operating income   24,763   20,286   15,682   22.1%   57.9%
Income from associates and joint ventures   (267)   (133)  (46)   (100.8%)   (480.4%)
Income from net monetary position (18,729) (11,870) (11,711)  (57.8%)  (59.9%)
Income before income tax  5,767  8,283  3,925  (30.4%)   46.9%
Income tax   (1,733)   (2,747)  677   36.9%   (356.0%)
Income for the period  4,034  5,536  4,602  (27.1%)  (12.3%)
Owners of the parent  4,187  5,505  4,667  (23.9%)  (10.3%)
Non-controlling interests   (153) 29  (65)  n.m    (135.4%)
           
Other comprehensive Income (1)  1,324  1,206   (288)  9.8%  n.m 
Total comprehensive income  5,358  6,742  4,314  (20.5%)   24.2%
(1) Net of Income Tax.
31 
 

 

Income Statement – 3 month accumulated

INCOME STATEMENT - 3 MONTH ACCUMULATED BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted      
  2022 2021 ∆ %
Interest income   69,020   56,932   21.2%
Interest expense (29,791) (23,510)  (26.7%)
Net interest income   39,229   33,422   17.4%
Fee income   12,955   11,909  8.8%
Fee expenses   (6,321)   (6,705)  5.7%
Net fee income  6,634  5,204   27.5%
Net income from financial instruments at fair value through P&L  4,086  2,482   64.6%
Net loss from write-down of assets at amortized cost and fair value through OCI  (34)  (51)   33.3%
Foreign exchange and gold gains  1,712  1,389   23.3%
Other operating income  3,373  2,399   40.6%
Loan loss allowances   (2,269)   (2,968)   23.6%
Net operating income   52,731   41,877   25.9%
Personnel benefits   (9,065)   (9,059) (0.1%)
Administrative expenses   (9,515)   (8,270)  (15.1%)
Depreciation and amortization   (1,634)   (1,657)  1.4%
Other operating expenses   (7,754)   (7,209) (7.6%)
Operating expenses (27,968) (26,195) (6.8%)
Operating income   24,763   15,682   57.9%
Income from associates and joint ventures   (267)  (46)   (480.4%)
Income from net monetary position (18,729) (11,711)  (59.9%)
Income before income tax  5,767  3,925   46.9%
Income tax   (1,733)  677   (356.0%)
Income for the period  4,034  4,602  (12.3%)
Owners of the parent  4,187  4,667  (10.3%)
Non-controlling interests   (153)  (65)   (135.4%)
       
Other comprehensive Income (OCI) (1)  1,324   (288)  n.m 
Total comprehensive income  5,358  4,314   24.2%
(1) Net of Income Tax.      
32 
 

 

Income Statement – 5 Quarters

INCOME STATEMENT BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted          
  1Q22 4Q21 3Q21 2Q21 1Q21
Interest income             69,020             64,888             66,569             61,048             56,932
Interest expense           (29,791)           (25,909)           (29,205)           (27,067)           (23,510)
Net interest income             39,229             38,978             37,364             33,979             33,422
Fee income             12,955             13,429             13,219             13,332             11,909
Fee expenses             (6,321)             (6,665)             (5,304)             (5,742)             (6,705)
Net fee income              6,634              6,765              7,915              7,590              5,204
Net income from financial instruments at fair value through P&L              4,086                (262)              1,095              1,750              2,482
Net loss from write-down of assets at amortized cost and fair value through OCI                  (34)                  (21)                  (48)                  (23)                  (51)
Foreign exchange and gold gains              1,712              1,892              1,498              1,652              1,389
Other operating income              3,373              2,435              2,025              2,533              2,399
Loan loss allowances             (2,269)                (515)             (3,141)             (2,971)             (2,968)
Net operating income             52,731             49,272             46,708             44,510             41,877
Personnel benefits             (9,065)             (8,955)             (9,442)             (8,890)             (9,059)
Administrative expenses             (9,515)             (9,898)           (11,259)             (8,218)             (8,270)
Depreciation and amortization             (1,634)             (1,630)             (1,529)             (1,662)             (1,657)
Other operating expenses             (7,754)             (8,503)             (7,502)             (7,777)             (7,209)
Operating expenses           (27,968)           (28,986)           (29,732)           (26,547)           (26,195)
Operating income             24,763             20,286             16,976             17,963             15,682
Income from associates and joint ventures                (267)                (133)                (114)                 243                  (46)
Income from net monetary position           (18,729)           (11,870)           (10,598)           (12,211)           (11,711)
Income before income tax              5,767              8,283              6,264              5,995              3,925
Income tax             (1,733)             (2,747)             (1,934)              4,097                 677
Income for the period              4,034              5,536              4,330             10,092              4,602
Owners of the parent              4,187              5,505              4,324             10,091              4,667
Non-controlling interests                (153)                   29                     9                     2                  (65)
           
Other comprehensive Income (OCI)(1)              1,324              1,206                (283)                 104                (288)
Total comprehensive income              5,358              6,742              4,050             10,199              4,314
(1) Net of Income Tax.          
33 
 

 

Ratios

QUARTERLY ANNUALIZED RATIOS BBVA ARGENTINA CONSOLIDATED
In %       ∆ bps
  1Q22 4Q21 1Q21 QoQ YoY
Profitability          
Efficiency Ratio 72.2% 67.3% 72.5%  496 bps  (25)bps
Efficiency Ratio (excl. Inflation adjustments) 43.3% 48.4% 50.1%   (511)bps   (682)bps
ROA 1.4% 1.8% 1.6%  (41)bps  (17)bps
ROE 9.0% 11.8% 10.5%   (273)bps   (146)bps
Liquidity          
Liquid assets / Total Deposits 79.6% 76.4% 72.0%  327 bps  760 bps
Capital          
Regulatory Capital Ratio 23.54% 20.81% 22.35%  274 bps  119 bps
TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) 23.31% 20.28% 21.73%  304 bps  158 bps
Asset Quality          
Total non-performing portfolio / Total portfolio 1.29% 1.87% 1.72%  (58)bps  (43)bps
Allowances  /Total non-performing portfolio  219.75% 181.90% 275.23%  3,785 bps   (5,548)bps
Cost of Risk 2.11% 0.46% 2.47%  165 bps  (36)bps

 

ACCUMULATED ANNUALIZED RATIOS BBVA ARGENTINA CONSOLIDATED
In %        ∆ bps
  1Q22 4Q21 1Q21 QoQ YoY
Profitability          
Efficiency Ratio 72.24% 69.07% 72.49%  317 bps  (25)bps
Efficiency Ratio (excl. Inflation adjustments) 43.26% 49.38% 50.08%   (612)bps   (682)bps
ROA 1.44% 2.05% 1.61%  (61)bps  (17)bps
ROE 9.04% 13.54% 10.51%   (450)bps   (146)bps
Liquidity          
Liquid assets / Total Deposits 79.64% 76.36% 72.04%  327 bps  760 bps
Capital          
Regulatory Capital Ratio 23.54% 20.81% 22.35%  274 bps  119 bps
TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) 23.31% 20.28% 21.73%  304 bps  158 bps
Asset Quality          
Total non-performing portfolio / Total portfolio 1.29% 1.87% 1.72%  (58)bps  (43)bps
Allowances  /Total non-performing portfolio  219.75% 181.90% 275.23%  3,785 bps   (5,548)bps
Cost of Risk 2.11% 2.14% 2.47% (4)bps  (36)bps

 

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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

Belén Fourcade

Investor Relations

 

investorelations-arg@bbva.com

ir.bbva.com.ar

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    Banco BBVA Argentina S.A.
Date: May 19, 2022   By: /s/ Ernesto Gallardo Jimenez
        Name: Ernesto Gallardo Jimenez
        Title: Chief Financial Officer