6-K 1 bbarpr4q22_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 March 2023

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 fourth quarter earnings for fiscal year 2022.

Banco BBVA Argentina S.A. announces Fourth Quarter and 2022 Fiscal Year results

Buenos Aires, March 6, 2023 – 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 fourth quarter (4Q22), ended on December 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 December 31, 2022.

4Q22 & 2022 Highlights

| · | BBVA Argentina’s inflation adjusted net income in 4Q22 was $17.1 billion, 50.9% greater than the $11.3 billion reported on the third quarter of 2022 (3Q22), and 84.1% greater than the $9.3 billion reported on the fourth quarter of 2021 (4Q21). BBVA Argentina’s inflation adjusted net income in 2022 totaled $57.9 billion, 40.5% higher than the $41.2 billion reported in 2021.

| · | In 4Q22, BBVA Argentina posted an inflation adjusted average return on assets (ROAA) of 3.6% and an inflation adjusted average return on equity (ROAE) of 19.4%. In 2022, BBVA Argentina posted an inflation adjusted ROAA of 3.0% and an inflation adjusted ROAE of 17.5%.

| · | Operating income in 4Q22 was $61.7 billion, 8.6% above the $56.8 billion recorded in 3Q22 and 81.2% over the $34.1 billion recorded in 4Q21. In 2022, operating income was $205.8 billion, 73.0% above the $119.0 billion recorded in 2021.

| · | In terms of activity, total consolidated financing to the private sector in 4Q22 totaled $733.5 billion, increasing 7.4% in real terms compared to 3Q22, and contracting 3.1% compared to 4Q21. In the quarter, the increase was mainly driven by growth in discounted instruments, other loans, overdrafts and in credit cards by 34.6%, 8.0%, 12.1% and 2.9% respectively. BBVA’s consolidated market share of private sector loans reached 9.10% as of 4Q22.

| · | Total consolidated deposits in 4Q22 totaled $1.3 trillion, increasing 5.3% in real terms during the quarter, and falling 4.8% in the year. Quarterly increase was mainly explained by sight deposits, which grew 9.3%. The Bank’s consolidated market share of private deposits reached 6.64% as of 4Q22.

| · | As of 4Q22, the non-performing loan ratio (NPL) reached 1.13%, with a 242.23% coverage ratio.

| · | The accumulated efficiency ratio in 4Q22 was 63.9%, below 3Q22’s 69.0%, and 4Q21’s 69.1%.

| · | As of 4Q22, BBVA Argentina reached a regulatory capital ratio of 26.1%, entailing a $219.5 billion or 219.1% excess over minimum regulatory requirement. Tier I ratio was 25.6%.

| · | Total liquid assets represented 77.3% of the Bank’s total deposits as of 4Q22.

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Message from the CFO

“In spite of a less favorable global context and a local environment characterized by the difficulty of correcting current macroeconomic distortions and of meeting the established objectives in the loan agreement reached in March with the International Monetary Fund, economic activity has shown dynamism in 2022. Evidence suggests, according to BBVA Research, that GDP would have grown 5.0% in 2022. At the same time, the global context, high local inflation (94.8% accumulated as of December 2022, and foreseeably around the same levels by the end of 2023), financial volatility, uncertainty about economic policy, and the limited leeway to adopt new stimulus measures, legitimate the expectations of a contraction of GDP in 2023.

In 2022, private credit in pesos for the system grew 66%, while BBVA Argentina increased its private loan portfolio in pesos by 88%. Despite the Bank nor the system having exceeded inflation, BBVA Argentina achieved to increase its consolidated market share in the year by 62 bps, reaching 9.10%. Regarding private deposits, the system grew 93% while the Bank grew 86%, again not beating inflation. Consolidated market share of deposits for BBVA Argentina was 6.64%.

Referring to BBVA Argentina performance, a better operating income in 2022 was a product of an improvement in interest income and interests from government securities.

As of December 2022, BBVA Argentina reached an NPL ratio of 1.13%, way below the last available system NPL (December 2022) of 3.1%. Concerning liquidity and solvency indicators, the Bank ends the quarter with 77.6% and 26.1% respectively, levels which undoubtedly allow to address business growth in the case of an economic recovery.

As of the date of this report, BBVA Argentina has distributed dividends by $13.2 billion (instalments 1 to 12) according to the established schedule published on June 16, 2022.

Concerning active clients, 2022 has been a year characterized by growth, with an 11% increment in total active clients. Relative to digitalization, our service offering has evolved in such way that by the end of December 2022, retail digital client penetration reached 62%, remaining stable versus a year back, while that of retail mobile clients reached 55% from 53% in the same period. In the quarter, new client acquisition through digital channels over traditional ones was 72%, while in 4Q21 it was 66%.

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 in a decisive year for the Argentine Republic.”

Carmen Morillo Arroyo, CFO at BBVA Argentina

4Q22 Conference Call

Tuesday, March 7 - 12:00 p.m. Buenos Aires time (10:00 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 following exceptions:

a) The exclusion of the application of the IFRS 9 impairment model for non-financial public sector debt instruments.

b) As of December 31, 2021, the Bank valuated its remaining participation in Prisma Medios de Pago S.A. (“Prisma”) following the guidelines set out under applicable standard by the BCRA. In March 2022, the shares corresponding to the aforementioned interest were transferred and the income (loss) from their sale was recorded in the quarter ended March 31, 2022. Had IFRS rules been applied to determine the fair value mentioned before, results of previous periods and that of September 30, 2022, would have been modified. Nonetheless, this does not generate differences regarding the value of equity as pf December 31, 2022.

c) On May 29, 2017, the BCRA issued Memorandum No. 6/2017 whereby the Entity was required to account for a provision in liabilities for the reassessment of income tax applying the inflation adjustment for tax purposes. As described in Note 15, such provision was fully reversed as from June 30, 2021.

As of January 1, 2020, the Bank started to inform its inflation adjusted results pursuant to IAS 29 reporting. To facilitate comparison, figures of comparable quarters of 2021 and 2022 have been updated according to IAS 29 reporting to reflect the accumulated effect of inflation adjustment for each period up to December 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 Seguros Argentina 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. (“MODO”), 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, excluding debt instruments from the non-financial public sector.

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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Income Statement – 12 month accumulated

INCOME STATEMENT - 12 MONTH ACCUMULATED | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted |  |  |
| 2022 | 2021 | ∆ %
Interest income | 629,350 | 418,617 | 50.3%
Interest expense | (289,910) | (177,379) | (63.4%)
Net interest income | 339,440 | 241,238 | 40.7%
Fee income | 81,480 | 87,082 | (6.4%)
Fee expenses | (34,737) | (40,979) | 15.2%
Net fee income | 46,743 | 46,103 | 1.4%
Net income from financial instruments at fair value through P&L | 18,177 | 8,502 | 113.8%
Net loss from write-down of assets at amortized cost and fair value through OCI | 289 | (238) | 221.4%
Foreign exchange and gold gains | 8,077 | 10,791 | (25.2%)
Other operating income | 21,162 | 15,760 | 34.3%
Loan loss allowances | (19,480) | (16,104) | (21.0%)
Net operating income | 414,408 | 306,052 | 35.4%
Personnel benefits | (67,977) | (60,993) | (11.5%)
Administrative expenses | (68,142) | (63,176) | (7.9%)
Depreciation and amortization | (10,973) | (10,873) | (0.9%)
Other operating expenses | (61,486) | (52,007) | (18.2%)
Operating expenses | (208,578) | (187,049) | (11.5%)
Operating income | 205,830 | 119,003 | 73.0%
Income from associates and joint ventures | (466) | (82) | (468.3%)
Income from net monetary position | (143,507) | (77,853) | (84.3%)
Income before income tax | 61,857 | 41,068 | 50.6%
Income tax | (3,923) | 155 | n.m
Income for the period | 57,934 | 41,223 | 40.5%
Owners of the parent | 58,815 | 41,264 | 42.5%
Non-controlling interests | (881) | (41) | n.m
Other comprehensive Income (OCI) (1) | (8,856) | 1,127 | n.m
Total comprehensive income | 49,078 | 42,350 | 15.9%
(1) Net of Income Tax. |  |  |

BBVA Argentina 2022 net income was $57.9 billion, 40.5% higher than the $41.2 billion reported in 2021. This implied an accumulated annualized ROAE of 17.5% and a ROAA of 3.0% in 2022, compared to an accumulated annualized ROAE of 13.5% and a ROAA of 2.0% in 2021.

The increment in the Bank’s operating income is mainly explained by (i) an increase in interest income, mostly due to an increase in the position and yield of Central Bank instruments, and (ii) better net income from financial instruments at fair value through P&L, explained both by an increase in the position of BCRA liquidity bills (LELIQ) and inflation-linked (CER) National Treasury bonds, and by the sale the remaining participation of the Bank in Prisma during the first quarter of 2022. 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.

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These effects were negatively offset by greater expenses related to personnel benefits lead by collective agreements with the unions, and other operating expenses, the latter affected by the increase in turnover tax derived from a greater income from LELIQ interests.

Another factor to consider is the income tax line, which had a negative result in 2022 of only $3.9 billion, explained by the implications of fiscal inflation adjustments in the determination of payable taxes and tax deferrals, mainly recorded during the second quarter of 2022 (2Q22). On the other hand, in 2021, the same line shows a positive accumulated result of $155 million, explained by the reversal of provisions connected to the repayment of income tax inflation adjustments for 2016, 2017 and 2018 fiscal years respectively, impacted on the first and second quarter of 2021 (1Q21 & 2Q21).

Additionally, net income is affected by income from net monetary position in a context of higher inflation.

Lastly, Other Comprehensive Income (OCI) was negatively impacted by the valuation of the CER-linked National Treasury bond position, especially on the second quarter of 2022.

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Quarterly Results

INCOME STATEMENT | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Net Interest Income | 106,072 | 89,829 | 65,417 | 18.1% | 62.1%
Net Fee Income | 10,167 | 10,696 | 11,351 | (4.9%) | (10.4%)
Net income from measurement of financial instruments at fair value through P&L | 4,998 | 4,401 | (439) | 13.6% | n.m
Net income from write-down of assets at amortized cost and at fair value through OCI | (584) | 119 | (34) | n.m | n.m
Foreign exchange and gold gains | 368 | 2,609 | 3,174 | (85.9%) | (88.4%)
Other operating income | 5,476 | 5,278 | 4,086 | 3.8% | 34.0%
Loan loss allowances | (7,348) | (4,811) | (865) | (52.7%) | n.m
Net operating income | 119,149 | 108,121 | 82,690 | 10.2% | 44.1%
Personnel benefits | (18,328) | (16,256) | (15,027) | (12.7%) | (22.0%)
Adminsitrative expenses | (17,405) | (17,228) | (16,612) | (1.0%) | (4.8%)
Depreciation and amortization | (3,350) | (2,416) | (2,736) | (38.7%) | (22.4%)
Other operating expenses | (18,378) | (15,424) | (14,270) | (19.2%) | (28.8%)
Operarting expenses | (57,461) | (51,324) | (48,645) | (12.0%) | (18.1%)
Operating income | 61,688 | 56,797 | 34,045 | 8.6% | 81.2%
Income from associates | 119 | (450) | (224) | 126.4% | 153.1%
Income from net monetary position | (36,539) | (41,501) | (19,922) | 12.0% | (83.4%)
Net income before income tax | 25,268 | 14,846 | 13,899 | 70.2% | 81.8%
Income tax | (8,168) | (3,514) | (4,611) | (132.4%) | (77.1%)
Net income for the period | 17,100 | 11,332 | 9,288 | 50.9% | 84.1%
Owners of the parent | 17,337 | 11,540 | 9,239 | 50.2% | 87.7%
Non-controlling interests | (237) | (208) | 49 | (13.9%) | n.m
Other comprehensive Income (OCI) (1) | (5,402) | 8,129 | 2,024 | (166.5%) | (366.9%)
Total comprehensive income | 11,698 | 19,461 | 11,312 | (39.9%) | 3.4%
(1) Net of Income Tax. |  |  |  |  |

BBVA Argentina 4Q22 net income was $17.1 billion, increasing 50.9% or $5.8 billion quarter-over-quarter (QoQ) and 84.1% or $7.8 billion year-over-year (YoY). This implied a quarterly ROAE of 19.4% and a quarterly ROAA of 3.6%.

Quarterly operating results are mainly explained by greater interest income driven by a higher monetary policy rate compared to the previous quarter, which allowed net operating income to increase more than operating expenses.

This effect was partially offset by an increase in (i) other operating income, (ii) loan loss allowances and (iii) a fall in foreign exchange and gold gains.

It is worth mentioning that on 4Q22, income from net monetary position decreased 12.0% given a lower quarterly inflation which changed from 22.01 in 3Q22 to 17.3%1 in the fourth quarter of the year.

Lastly, the OCI line was negatively impacted by the valuation of CER-linked National Treasury bonds given a lower inflation versus 3Q22.

1 Source: Instituto Nacional de Estadística y Censos (INDEC).

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EARNINGS PER SHARE | BBVA ARGENTINA CONSOLIDATED
|  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Financial Statement information |  |  |  |  |
Net income for the period attributable to owners of the parent (in AR$ millions, inflation adjusted) | 17,337 | 11,540 | 9,239 | 50.2% | 87.7%
Total shares outstanding (1) | 613 | 613 | 613 | - | -
Market information |  |  |  |  |
Closing price of ordinary share at BYMA (in AR$) | 455.2 | 315.9 | 224.3 | 44.1% | 102.9%
Closing price of ADS at NYSE (in USD) | 3.9 | 3.0 | 3.2 | 30.0% | 23.8%
Book value per share (in AR$) | 597.16 | 578.06 | 516.98 | 3.3% | 15.5%
Price-to-book ratio (BYMA price) (%) | 0.76 | 0.55 | 0.43 | 39.5% | 75.7%
Earnings per share (in AR$) | 28.30 | 18.83 | 15.08 | 50.2% | 87.7%
Earnings per ADS(2) (in AR$) | 84.89 | 56.50 | 45.24 | 50.2% | 87.7%
(1) In thousands of shares. |  |  |  |  |
(2) Each ADS accounts for 3 ordinary shares |  |  |  |  |

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Net Interest Income

NET INTEREST INCOME | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Net Interest Income | 106,072 | 89,829 | 65,417 | 18.1% | 62.1%
Interest Income | 201,717 | 169,270 | 108,898 | 19.2% | 85.2%
From government securities | 85,651 | 70,363 | 25,817 | 21.7% | 231.8%
From private securities | 165 | 161 | 117 | 2.5% | 41.0%
Interest from loans and other financing | 71,169 | 59,645 | 45,208 | 19.3% | 57.4%
Financial Sector | 499 | 679 | 834 | (26.5%) | (40.2%)
Overdrafts | 10,173 | 8,668 | 4,223 | 17.4% | 140.9%
Discounted Instruments | 14,122 | 10,061 | 7,960 | 40.4% | 77.4%
Mortgage loans | 688 | 1,015 | 778 | (32.2%) | (11.6%)
Pledge loans | 2,797 | 2,702 | 2,719 | 3.5% | 2.9%
Consumer Loans | 8,956 | 8,061 | 7,296 | 11.1% | 22.8%
Credit Cards | 19,913 | 15,578 | 12,679 | 27.8% | 57.1%
Financial leases | 649 | 520 | 459 | 24.8% | 41.4%
Loans for the prefinancing and financing of exports | 141 | 176 | 362 | (19.9%) | (61.0%)
Other loans | 13,231 | 12,185 | 7,898 | 8.6% | 67.5%
Premiums on reverse REPO transactions | 10,900 | 6,840 | 21,029 | 59.4% | (48.2%)
CER/UVA clause adjustment | 33,706 | 32,127 | 14,995 | 4.9% | 124.8%
Other interest income | 126 | 134 | 1,732 | (6.0%) | (92.7%)
Interest expenses | 95,645 | 79,441 | 43,481 | 20.4% | 120.0%
Deposits | 86,547 | 67,502 | 39,306 | 28.2% | 120.2%
Checking accounts | 9,666 | 10,730 | 5,741 | (9.9%) | 68.4%
Savings accounts | 495 | 434 | 248 | 14.1% | 99.6%
Time deposits and Investment accounts | 76,386 | 56,338 | 33,317 | 35.6% | 129.3%
Other liabilities from financial transactions | 179 | 155 | 262 | 15.5% | (31.7%)
Interfinancial loans received | 2,438 | 2,632 | 1,748 | (7.4%) | 39.5%
Premiums on REPO transactions | 4 | 20 | - | (80.0%) | N/A
CER/UVA clause adjustment | 6,474 | 9,131 | 2,165 | (29.1%) | 199.0%
Other interest expense | 3 | 1 | - | 200.0% | N/A

Net interest income for 4Q22 was $106.1 billion, increasing 18.1% or $16.2 billion QoQ, and 62.1% or $40.7 billion YoY. In 4Q22, interest income, in monetary terms, increased more than interest expense, mainly due to (i) greater income from government securities, (ii) an increase in income from interests from loans, in particular credit cards and discounted instruments, and (iii) increases in income from REPOs. The items mentioned take place in a context of increasing interest rates, derived from an increase in the monetary policy rate by the BCRA, as well as an increase in the inflation rate.

In 4Q22, interest income totaled $201.7 billion, increasing 19.2% compared to 3Q22 and 85.2% compared to 4Q21. Quarterly increase is mainly driven by (i) higher income from government securities, both from an increase in the nominal rate and the volume in the position of LELIQ; (ii) an increase in interests from loans, mainly credit cards and discounted instruments, especially due to the increment in interest rates and higher activity, and (iii) an increase in REPO premiums.

Income from government securities increased 21.7% compared to 3Q22, and 231.8% compared to 4Q21. This is partially due to the higher position in LELIQ, added to a higher monetary policy rate compared to the prior quarter. 94% of these results are explained by government securities at fair value through OCI (of which 74% are BCRA securities) and 4% are securities at amortized cost (2027 National Treasury Bonds at fixed rate and National Treasury Bonds Private 0.70 Badlar Rate maturing on November 2027, used for reserve requirement integration).

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Interest income from loans and other financing totaled $71.2 billion, increasing 19.3% QoQ and 57.4% YoY. Quarterly growth is mainly due to an increase in credit cards by 27.8% and in discounted instruments by 40.4%, the former affected by a seasonal factor.

Income from CER/UVA adjustments increased 4.9% QoQ and 124.8% YoY. Quarterly growth was driven by a higher yield of CER-linked securities. 76% of income from interests from CER/UVA clause adjustments is explained by interests generated by bonds linked to such indexes.

Interest expenses totaled $95.6 billion, denoting a 20.4% increase QoQ and a 120.0% increase YoY. Quarterly increase is described by higher time deposit expenses, although slightly offset by a fall in CER/UVA adjustment expenses (connected to CER-linked time deposits).

Interests from time deposits (including investment accounts) explain 79.9% of interest expenses, versus 70.9% the previous quarter. These increased 35.6% QoQ and 129.3% YoY.

NIM

As of 4Q22, net interest margin (NIM) was 30.3%, above the 26.1% reported in 3Q22. In 4Q22, NIM in pesos was 31.5% and 1.9% in U.S. dollars. In 2022, NIM was 24.5% compared to 2021’s 18.2%.

ASSETS & LIABILITIES PERFORMANCE - TOTAL | BBVA ARGENTINA CONSOLIDATED
In millions of AR$. Rates and spreads in annualized %
| 4Q22 | 3Q22 | 4Q21
| 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 | 1,389,120 | 201,786 | 57.6% | 1,362,838 | 169,200 | 49.3% | 1,352,606 | 108,898 | 31.9%
Debt securities | 684,794 | 122,242 | 70.8% | 656,767 | 100,586 | 60.8% | 614,035 | 56,273 | 36.4%
Loans to customers/financial institutions | 672,316 | 79,542 | 46.9% | 679,645 | 68,612 | 40.1% | 715,424 | 52,477 | 29.1%
Loans to the BCRA | 1 | 1 | 396.7% | 2 | 1 | 198.4% | 2 | - | 0.0%
Other assets | 32,009 | 1 | 0.0% | 26,423 | 1 | 0.0% | 23,145 | 148 | 2.5%
Total non interest-earning assets | 447,102 | (69) | -0.1% | 465,815 | 69 | 0.1% | 546,091 | - | 0.0%
Total Assets | 1,836,222 | 201,717 | 43.6% | 1,828,653 | 169,270 | 36.7% | 1,898,697 | 108,898 | 22.8%
Total interest-bearing liabilities | 932,524 | 95,645 | 40.7% | 933,227 | 79,441 | 33.8% | 953,448 | 43,481 | 18.1%
Sight deposits | 336,319 | 495 | 0.6% | 340,705 | 433 | 0.5% | 492,842 | 5,988 | 4.8%
Time deposits and investment accounts | 500,423 | 82,860 | 65.7% | 473,479 | 65,472 | 54.9% | 439,512 | 36,840 | 33.3%
Debt securities issued | 125 | 91 | 288.8% | 224 | 104 | 184.9% | 604 | 97 | 64.0%
Other liabilities | 95,657 | 12,199 | 50.6% | 118,818 | 13,432 | 44.9% | 20,490 | 555 | 10.7%
Total non-interest-bearing liabilities | 903,698 | - | 0.0% | 895,426 | - | 0.0% | 945,249 | - | 0.0%
Total liabilities and equity | 1,836,222 | 95,645 | 20.7% | 1,828,653 | 79,441 | 17.2% | 1,898,697 | 43,481 | 9.1%
NIM - Total |  |  | 30.3% |  |  | 26.1% |  |  | 19.2%
Spread - Total |  |  | 16.9% |  |  | 15.5% |  |  | 13.8%
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$. Rates and spreads in annualized %
| 4Q22 | 3Q22 | 4Q21
| Average Balance | Interest Earned/Paid | Average Real Rate | Average Balance | Interest Earned/Paid | Average Real Rate | Average Balance | Interest Earned/Paid | Average Real Rate
Total interest-earning assets | 1,332,782 | 201,490 | 60.0% | 1,303,347 | 168,878 | 51.4% | 1,284,304 | 108,438 | 33.5%
Debt securities | 673,839 | 122,215 | 72.0% | 648,014 | 100,562 | 61.6% | 612,944 | 56,273 | 36.4%
Loans to customers/financial institutions | 634,428 | 79,274 | 49.6% | 636,001 | 68,315 | 42.6% | 660,709 | 52,021 | 31.2%
Loans to the BCRA | 1 | 1 | 396.7% | 1 | 1 | 396.7% | 2 | - | 0.0%
Other assets | 24,514 | - | 0.0% | 19,331 | - | 0.0% | 10,649 | 144 | 5.4%
Total non interest-earning assets | 220,011 | - | 0.0% | 245,420 | - | 0.0% | 251,971 | - | 0.0%
Total Assets | 1,552,793 | 201,490 | 51.5% | 1,548,767 | 168,878 | 43.3% | 1,536,275 | 108,438 | 28.0%
Total interest-bearing liabilities | 747,425 | 95,613 | 50.8% | 752,654 | 79,418 | 41.9% | 705,681 | 43,370 | 24.4%
Savings accounts | 176,570 | 492 | 1.1% | 185,099 | 430 | 0.9% | 283,258 | 5,984 | 8.4%
Time deposits and Investment accounts | 476,215 | 82,848 | 69.0% | 449,332 | 65,460 | 57.8% | 406,553 | 36,827 | 35.9%
Debt securities issued | 125 | 91 | 288.8% | 224 | 104 | 184.9% | 604 | 97 | 64.0%
Other liabilities | 94,515 | 12,182 | 51.1% | 117,998 | 13,423 | 45.1% | 15,266 | 462 | 12.0%
Total non-interest-bearing liabilities | 811,867 | - | 0.0% | 801,363 | - | 0.0% | 834,548 | - | 0.0%
Total liabilities and equity | 1,559,292 | 95,613 | 24.3% | 1,554,017 | 79,418 | 20.3% | 1,540,229 | 43,370 | 11.2%
NIM - AR$ |  |  | 31.5% |  |  | 27.2% |  |  | 20.1%
Spread - AR$ |  |  | 9.2% |  |  | 9.5% |  |  | 9.1%
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 %
| 4Q22 | 3Q22 | 4Q21
| 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 | 56,338 | 296 | 2.1% | 59,491 | 323 | 2.2% | 68,302 | 460 | 2.7%
Debt securities | 10,955 | 27 | 1.0% | 8,754 | 25 | 1.1% | 1,091 | - | 0.0%
Loans to customers/financial institutions | 37,888 | 268 | 2.8% | 43,645 | 297 | 2.7% | 54,715 | 456 | 3.3%
Loans to the BCRA | - | - | - | 1 | - | 0.0% | - | - | -
Other assets | 7,495 | 1 | 0.1% | 7,092 | 1 | 0.1% | 12,496 | 4 | 0.1%
Total non interest-earning assets | 227,091 | (69) | 0.0% | 220,395 | 69 | 0.1% | 294,120 | - | 0.0%
Total Assets | 283,429 | 227 | 0.3% | 279,886 | 392 | 0.6% | 362,422 | 460 | 0.5%
Total interest-bearing liabilities | 185,099 | 32 | 0.1% | 180,573 | 23 | 0.1% | 247,767 | 111 | 0.2%
Savings accounts | 159,749 | 3 | 0.0% | 155,606 | 2 | 0.0% | 209,584 | 4 | 0.0%
Time deposits and Investment accounts | 24,208 | 12 | 0.2% | 24,147 | 12 | 0.2% | 32,959 | 14 | 0.2%
Other liabilities | 1,142 | 17 | 5.9% | 820 | 9 | 4.5% | 5,224 | 94 | 7.1%
Total non-interest-bearing liabilities | 91,831 | - | 0.0% | 94,063 | - | 0.0% | 110,701 | - | 0.0%
Total liabilities and equity | 276,930 | 32 | 0.0% | 274,636 | 23 | 0.0% | 358,468 | 111 | 0.1%
NIM - Foreign currency |  |  | 1.9% |  |  | 2.0% |  |  | 2.0%
Spread - Foreign currency |  |  | 2.0% |  |  | 2.1% |  |  | 2.5%
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 - TOTAL | BBVA ARGENTINA CONSOLIDATED
In millions of AR$. Rates and spreads in annualized % |  |  |  |  |
| 2022 | 2021
| Average Balance | Interest Earned/Paid | Average Real Rate | Average Balance | Interest Earned/Paid | Average Real Rate
Total interest-earning assets | 1,388,129 | 629,350 | 45.3% | 1,325,475 | 418,617 | 31.6%
Debt securities | 684,587 | 371,105 | 54.2% | 580,215 | 213,081 | 36.7%
Loans to customers/financial institutions | 679,390 | 258,233 | 38.0% | 724,112 | 205,259 | 28.3%
Loans to the BCRA | 2 | 9 | 450.0% | - | - | #DIV/0!
Other assets | 24,150 | 3 | 0.0% | 21,149 | 277 | 1.3%
Total non interest-earning assets | 493,304 | - | 0.0% | 579,846 | - | 0.0%
Total Assets | 1,881,433 | 629,350 | 33.5% | 1,905,322 | 418,617 | 22.0%
Total interest-bearing liabilities | 969,965 | 289,910 | 29.9% | 994,803 | 177,379 | 17.8%
Sight deposits | 363,099 | 1,605 | 0.4% | 526,294 | 27,902 | 5.3%
Time deposits and investment accounts | 476,253 | 239,236 | 50.2% | 445,237 | 149,512 | 33.6%
Debt securities issued | 313 | 422 | 134.8% | 1,843 | 822 | 44.6%
Other liabilities | 130,300 | 48,647 | 37.3% | 21,429 | (857) | -4.0%
Total non-interest-bearing liabilities | 911,468 | - | 0.0% | 910,517 | - | 0.0%
Total liabilities and equity | 1,881,433 | 289,910 | 15.4% | 1,905,320 | 177,379 | 9.3%
NIM - Total |  |  | 24.5% |  |  | 18.2%
Spread - Total |  |  | 15.4% |  |  | 13.8%
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 |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Net Fee Income | 10,167 | 10,696 | 11,351 | (4.9%) | (10.4%)
Fee Income | 19,777 | 19,370 | 22,537 | 2.1% | (12.2%)
Linked to liabilities | 8,406 | 8,387 | 8,433 | 0.2% | (0.3%)
From credit cards (1) | 7,686 | 7,377 | 10,428 | 4.2% | (26.3%)
Linked to loans | 1,771 | 1,583 | 1,518 | 11.9% | 16.7%
From insurance | 853 | 852 | 916 | 0.1% | (6.9%)
From foreign trade and foreign currency transactions | 813 | 944 | 936 | (13.9%) | (13.1%)
Other fee income | 248 | 227 | 306 | 9.3% | (19.0%)
Fee expenses | 9,610 | 8,674 | 11,186 | 10.8% | (14.1%)
(1) Includes results from Puntos BBVA royalty program pursuant to IFRS 15 regulation.

Net fee income as of 4Q22 totaled $10.2 billion, decreasing 4.9% or $529 million QoQ and 10.4% or $1.2 billion YoY.

In 4Q22, fee income totaled $19.8 billion, increasing 2.1% QoQ and falling 12.2% YoY. The quarterly increase is mainly explained by fees from credit cards growing 4.2%, mostly due to more activity and consumption, and fees linked to loans. This is offset by a decrease in fees from foreign trade and foreign currency transactions.

Regarding fee expenses, these totaled $9.6 billion, increasing 10.8% QoQ and falling 14.1% YoY. Higher expenses in the quarter are partially explained by expenditures linked to credit and debit cards, due to higher client acquisition costs, processing fees and higher expenditures in seasonal commercial promotions.

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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 |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Net Income from financial instruments at FV through P&L | 4,998 | 4,401 | (439) | 13.6% | n.m
Income from government securities | 4,907 | 3,001 | 920 | 63.5% | 433.4%
Income from private securities | 567 | 484 | (25) | 17.1% | n.m
Interest rate swaps | (16) | 118 | 7 | (113.6%) | (328.6%)
Gains from foreign currency forward transactions | (436) | 809 | 961 | (153.9%) | (145.4%)
Income from put option long position - Prisma Medios de Pago | (24) | (11) | (2,302) | (118.2%) | 99.0%

In 4Q22, net income from financial instruments at fair value (FV) through P&L was $5.0 billion, increasing 13.6% or $597 million QoQ and 1,238.5% or $5.4 billion YoY.

Quarterly results are mainly explained by an increase in the income from government securities line item, especially due to the greater position and interest rate generated by the LELIQ portfolio, and a greater income from the National Treasury bills portfolio.

These results were offset by a decrease in the line gains from foreign currency forward transactions.

In the year, a contrast is seen explained by the write-off from the balance sheet of the Prisma put option. As of October 1, 2021, the Bank, together with the rest of Prisma’s Class B shareholders, have notified the decision to exercise the put option and initiate the sale procedure of the 49% remaining of its position in Prisma. This generated a loss of $2.3 billion (at current values) in the Income from put option long position – Prisma Medios de Pago line item.

DIFFERENCES IN QUOTED PRICES OF GOLD AND FOREIGN FOREIGN CURRENCY | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Foreign exchange and gold gains/(losses) (1) | 368 | 2,609 | 3,174 | (85.9%) | (88.4%)
From foreign exchange position | (1,987) | (862) | (289) | (130.5%) | n.m
Income from purchase-sale of foreign currency | 2,355 | 3,471 | 3,463 | (32.2%) | (32.0%)
Net income from financial instruments at FV through P&L (2) | (436) | 809 | 961 | (153.9%) | (145.4%)
Income from foreign currency forward transactions | (436) | 809 | 961 | (153.9%) | (145.4%)
Total differences in quoted prices of gold & foreign currency (1) + (2) | (68) | 3,418 | 4,135 | (102.0%) | (101.6%)

In 4Q22, the total differences in quoted prices of gold and foreign currency showed profit for $368 million, falling 85.9% or $2.234 million compared to 3Q22.

The quarterly fall in foreign exchange and gold gains is mainly explained by the decrease contained in the From foreign exchange position line.

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Other Operating Income

OTHER OPERATING INCOME | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Operating Income | 5,476 | 5,278 | 4,086 | 3.8% | 34.0%
Rental of safe deposit boxes (1) | 667 | 660 | 756 | 1.1% | (11.8%)
Adjustments and interest on miscellaneous receivables (1) | 1,975 | 1,817 | 1,177 | 8.7% | 67.8%
Punitive interest (1) | 152 | 126 | 99 | 20.6% | 53.5%
Loans recovered | 1,293 | 681 | 763 | 89.9% | 69.5%
Non-current assets held for sale | - | 456 | - | (100.0%) | N/A
Fee income from credit and debit cards (1) | 235 | 452 | 335 | (48.0%) | (29.9%)
Fee expenses recovery | 208 | 192 | 164 | 8.3% | 26.8%
Rents | 197 | 140 | - | 40.7% | N/A
Sindicated transaction fees | 51 | 47 | 80 | 8.5% | (36.3%)
Other Operating Income(2) | 698 | 707 | 712 | (1.3%) | (2.0%)
(1) Included in the efficiency ratio calculation |  |  |  |  |
(2) Includes some of the concepts used in the efficiency ratio calculation |  |  |  |  |

In 4Q22 other operating income totaled $5.5 billion, increasing 3.8% or $198 million QoQ, and 34.0% or $1.4 billion YoY. Quarterly increase is partially explained by an 89.9% increase in the Loans recovered line item, followed by an 8.7% increase in the Adjustments and interest on miscellaneous receivables line.

This was partially offset by contrast by the decrease in the Income from non-current assets held for sale line item, as a result from the sale procedures of the Fundación BBVA estate on July 13, 2022, which was registered as “non-current assets held for sale” as of June 30, 2022.

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Operating Expenses

Personnel Benefits and Administrative Expenses

PERSONNEL BENEFITS & ADMINISTRATIVE EXPENSES | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Total Personnel Benefits and Adminsitrative Expenses | 35,733 | 33,484 | 31,639 | 6.7% | 12.9%
Personnel Benefits (1) | 18,328 | 16,256 | 15,027 | 12.7% | 22.0%
Administrative expenses (1) | 17,405 | 17,228 | 16,612 | 1.0% | 4.8%
Travel expenses | 371 | 103 | 50 | 260.2% | n.m
Outsourced administrative expenses | 1,960 | 1,818 | 2,045 | 7.8% | (4.2%)
Security services | 434 | 437 | 596 | (0.7%) | (27.2%)
Fees to Bank Directors and Supervisory Committee | 40 | 13 | 51 | 207.7% | (21.6%)
Other fees | 652 | 461 | 695 | 41.4% | (6.2%)
Insurance | 148 | 161 | 177 | (8.1%) | (16.4%)
Rent | 2,261 | 2,488 | 1,338 | (9.1%) | 69.0%
Stationery and supplies | 19 | 24 | 42 | (20.8%) | (54.8%)
Electricity and communications | 619 | 596 | 647 | 3.9% | (4.3%)
Advertising | 977 | 815 | 772 | 19.9% | 26.6%
Taxes | 3,871 | 3,619 | 3,554 | 7.0% | 8.9%
Maintenance costs | 1,729 | 1,641 | 1,910 | 5.4% | (9.5%)
Armored transportation services | 1,616 | 1,714 | 1,990 | (5.7%) | (18.8%)
Software | 1,371 | 1,889 | 1,328 | (27.4%) | 3.2%
Document distribution | 460 | 497 | 484 | (7.4%) | (5.0%)
Commercial reports | 326 | 329 | 166 | (0.9%) | 96.4%
Other administrative expenses | 551 | 623 | 767 | (11.6%) | (28.2%)
Headcount* |  |  |  |  |
BBVA (Bank) | 5,795 | 5,787 | 5,765 | 8 | 30
Subsidiaries (2) | 93 | 93 | 98 | - | (5)
Total employees* | 5,888 | 5,880 | 5,863 | 8 | 25
In branches | 1,877 | 1,927 | 2,000 | (50) | (123)
At Main office | 4,011 | 3,953 | 3,863 | 58 | 148
Total branches** | 243 | 243 | 243 | - | -
Efficiency Ratio |  |  |  |  |
Efficiency ratio | 53.0% | 64.8% | 67.3% | (1,181)bps | (1,428)bps
Accumulated Efficiency Ratio | 63.9% | 69.0% | 69.1% | (505)bps | (512)bps
(1) Concept included in the efficiency ratio calculation
(2) Includes BBVA Asset Management, PSA & VWFS. Included in Main Office.
*corresponds to total effective employees, net of temporary contract employees
**do not include administrative offices. As of 3Q22, 47% owned and 53% rented.

During 4Q22, personnel benefits and administrative expenses totaled $35.7 billion, increasing 6.7% or $2.2 billion compared to 3Q22, and 12.9% or $4.1 billion compared to 4Q21.

Personnel benefits increased 12.7% QoQ, and 22.0% YoY. The quarterly increase is partially explained by the effect of collective agreement on wages with the unions on 4Q22 (a 65.1% accumulated increase as of September, ending in a 94.1% in December), an increment in personnel compensations and bonuses, and an increase in employee training expenditures.

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As of 4Q22, administrative expenses increased 1.0% QoQ, and 4.8% YoY. The quarterly increase is partially explained by (i) an increase in taxes, (ii) greater expenses in advertising costs, and (iii) increase in outsourced administrative expenses.

The negative effect of the aforementioned items was offset by a decrease in the rent and software line items.

The quarterly efficiency ratio as of 4Q22 was 53.0%, improving compared to the 64.8% reported in 3Q22, and versus the 67.3% reported in 4Q21. The quarterly improvement is explained by a lower increase in the numerator (expenses) than the denominator (income considering monetary position results), especially due to a significant improvement in interest income and lower quarterly results from the net monetary position.

The accumulated efficiency ratio as of 4Q22 was 63.9%, improving compared to the 69.0% reported in 3Q22, and versus the 69.1% reported in 4Q21. The quarterly improvement is explained by a lower increase in the numerator (expenses) than the denominator (income considering monetary position results), especially due to a significant improvement in interest income.

Other Operating Expenses

OTHER OPERATING EXPENSES | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Other Operating Expenses | 18,378 | 15,424 | 14,270 | 19.2% | 28.8%
Turnover tax | 12,053 | 10,805 | 8,457 | 11.6% | 42.5%
Initial loss of loans below market rate | 992 | 1,123 | 1,254 | (11.7%) | (20.9%)
Contribution to the Deposit Guarantee Fund (SEDESA) | 477 | 505 | 557 | (5.5%) | (14.4%)
Interest on liabilities from financial lease | 138 | 149 | 207 | (7.4%) | (33.3%)
Other allowances | 2,995 | 1,197 | (515) | 150.2% | n.m
Loss for sale or depreciation of investment property and other non financial assets | 12 | - | 76 | N/A | (84.2%)
Other operating expenses | 1,711 | 1,645 | 4,234 | 4.0% | (59.6%)

In 4Q22, other operating expenses totaled $18.4 billion, increasing 19.2% or $3.0 billion QoQ, and 28.8% or $4.1 billion YoY.

The key factor explaining the quarterly growth is in the other allowances line item increasing 150.2%, mainly related to the increase in credit card purchase limits, and the provision of commercial lawsuits. This is followed by an increase in turnover tax, especially driven by higher income from LELIQ.

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Income from Associates

This line reflects the results from non-consolidated associate companies. During 4Q22, profit for $119 million has been reported, mainly due to the Bank’s participation in BBVA Seguros Argentina 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 2022 recorded a loss of only $3.9 billion. As of 4Q22, income tax expense was $8.2 billion.

Regarding 2Q22, income tax expenses showed a positive result of $10.7 billion, affected by the implications of inflation adjustments in the determination of payable taxes and tax deferrals.

Accumulated income tax during 2021 recorded a gain of $155 million. As of 4Q21, tax expenses were $4.6 billion. The first and second quarters of 2021 included the reversal of provisions connected to the repayment of income tax inflation adjustments for 2016, 2017 and 2018 fiscal years.

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Balance sheet and activity

Loans and Other Financing

LOANS AND OTHER FINANCING | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
To the public sector | 10 | 7 | 1 | 42.9% | n.m
To the financial sector | 4,465 | 5,807 | 8,282 | (23.1%) | (46.1%)
Non-financial private sector and residents abroad | 733,512 | 683,100 | 756,656 | 7.4% | (3.1%)
Non-financial private sector and residents abroad - AR$ | 689,842 | 639,870 | 712,758 | 7.8% | (3.2%)
Overdrafts | 62,944 | 56,132 | 43,878 | 12.1% | 43.5%
Discounted instruments | 117,126 | 87,319 | 100,073 | 34.1% | 17.0%
Mortgage loans | 38,510 | 39,479 | 44,625 | (2.5%) | (13.7%)
Pledge loans | 24,708 | 25,899 | 31,832 | (4.6%) | (22.4%)
Consumer loans | 71,324 | 72,098 | 79,769 | (1.1%) | (10.6%)
Credit cards | 268,769 | 257,699 | 301,129 | 4.3% | (10.7%)
Receivables from financial leases | 6,459 | 6,088 | 5,623 | 6.1% | 14.9%
Other loans | 100,002 | 95,156 | 105,829 | 5.1% | (5.5%)
Non-financial private sector and residents abroad - Foreign Currency | 43,670 | 43,230 | 43,898 | 1.0% | (0.5%)
Overdrafts | 3 | 6 | 5 | (50.0%) | (40.0%)
Discounted instruments | 563 | 143 | - | 293.7% | N/A
Credit cards | 5,768 | 9,028 | 4,966 | (36.1%) | 16.1%
Receivables from financial leases | (71) | (82) | 50 | 13.4% | (242.0%)
Loans for the prefinancing and financing of exports | 25,073 | 25,238 | 25,990 | (0.7%) | (3.5%)
Other loans | 12,334 | 8,897 | 12,887 | 38.6% | (4.3%)
% of total loans to Private sector in AR$ | 94.0% | 93.7% | 94.2% | 37 bps | (15)bps
% of total loans to Private sector in Foreign Currency | 6.0% | 6.3% | 5.8% | (0)bps | (0)bps
% of mortgage loans with UVA adjustments / Total mortgage loans (1) | 56.7% | 57.9% | 74.6% | (115)bps | (1,793)bps
% of pledge loans with UVA adjustments / Total pledge loans (1) | 2.2% | 2.9% | 5.9% | (65)bps | (370)bps
% of consumer loans with UVA adjustments / Total consumer loans (1) | 0.7% | 1.1% | 3.5% | (38)bps | (279)bps
% of loans with UVA adjustments / Total loans and other financing(1) | 0.2% | 0.3% | 0.7% | (10)bps | (55)bps
Total loans and other financing | 737,987 | 688,914 | 764,939 | 7.1% | (3.5%)
Allowances | (20,890) | (18,162) | (26,595) | (15.0%) | 21.5%
Total net loans and other financing | 717,097 | 670,752 | 738,344 | 6.9% | (2.9%)
(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 |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
FX rate* | 177.13 | 147.32 | 102.75 | 20.2% | 72.4%
Non-financial private sector and residents abroad - Foreign Currency (USD) | 247 | 250 | 219 | (1.5%) | 12.4%
*Wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500, as of the end of period.

| 17

Private sector loans as of 4Q22 totaled $733.5 billion, increasing 7.4% or $50.4 billion QoQ, and falling 3.1% or $23.1 billion YoY.

Loans to the private sector in pesos increased 7.8% in 4Q22, and fell 3.2% YoY. During the quarter, the increase was especially driven by a 34.1% growth in discounted instruments, a 4.3% increase in credit cards due to growth in activity, followed by a 12.1% increase in overdrafts and 5.1% in other loans. The latter are affected by greater floorplan activity, through which the automotive consolidated financial companies’ official dealership network gets its financing for vehicle stock, spare parts and other goods.

Loans to the private sector denominated in foreign currency lightly increased 1.0% QoQ and remained practically stable, falling 0.5% YoY. Quarterly increase is mainly explained by a 38.6% increment in other loans, and partially offset by a 36.1% fall in credit cards. Loans to the private sector in foreign currency measured in U.S. dollars fell 1.5% QoQ and increased 12.4% YoY. The depreciation of the argentine peso versus the U.S. dollar was 16.8% QoQ and 42.0% YoY2.

In 4Q22, total loans and other financing totaled $738.0 billion, growing 7.1% compared to 3Q22 and falling 3.5% compared to 4Q21.

LOANS AND OTHER FINANCING | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Non-financial private sector and residents abroad - Retail | 409,079 | 404,203 | 462,321 | 1.2% | (11.5%)
Mortgage loans | 38,510 | 39,479 | 44,625 | (2.5%) | (13.7%)
Pledge loans | 24,708 | 25,899 | 31,832 | (4.6%) | (22.4%)
Consumer loans | 71,324 | 72,098 | 79,769 | (1.1%) | (10.6%)
Credit cards | 274,537 | 266,727 | 306,095 | 2.9% | (10.3%)
Non-financial private sector and residents abroad - Commercial | 324,433 | 278,897 | 294,335 | 16.3% | 10.2%
Overdrafts | 62,947 | 56,138 | 43,883 | 12.1% | 43.4%
Discounted instruments | 117,689 | 87,462 | 100,073 | 34.6% | 17.6%
Receivables from financial leases | 6,388 | 6,006 | 5,673 | 6.4% | 12.6%
Loans for the prefinancing and financing of exports | 25,073 | 25,238 | 25,990 | (0.7%) | (3.5%)
Other loans | 112,336 | 104,053 | 118,716 | 8.0% | (5.4%)
% of total loans to Retail sector | 55.8% | 59.2% | 61.1% | (340)bps | (533)bps
% of total loans to Commercial sector | 44.2% | 40.8% | 38.9% | 340 bps | 533 bps

In real terms, retail loans (mortgage, pledge, consumer and credit cards) have increased 1.2% QoQ and fell 11.5% YoY in real terms. During the quarter, the slight growth is mainly explained by a 2.9% increase in credit cards.

Commercial loans (overdrafts, discounted instruments, receivables from financial leases, loans for the prefinancing and financing of exports, and other loans) increased 16.3% QoQ and 10.2% YoY, both in real terms. This is justified by quarterly increases in discounted instruments, overdrafts, and other loans by 34.6%, 12.1% and 8.0% respectively.

As observed in previous quarters, loan portfolios were impacted by the effect of inflation during the fourth quarter of 2022, which reached 17.3%. In nominal terms, BBVA Argentina managed to increase the retail, commercial and total loan portfolio by 18.7%, 36.4% and 25.6% respectively during the quarter.

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

| 18

LOANS AND OTHER FINANCING - NON RESTATED FIGURES | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Non-financial private sector and residents abroad - Retail | 409,079 | 344,611 | 237,341 | 18.7% | 72.4%
Non-financial private sector and residents abroad - Commercial | 324,433 | 237,775 | 151,099 | 36.4% | 114.7%
Total loans and other financing (1) | 737,987 | 587,342 | 392,693 | 25.6% | 87.9%
(1) Does not include allowances

As of 4Q22, the total loans and other financing over deposits ratio was 56.4%, above the 55.2% recorded in 3Q22 and the 55.4% in 4Q21.

MARKET SHARE - PRIVATE SECTOR LOANS | BBVA ARGENTINA CONSOLIDATED
In % |  |  |  | ∆ bps
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Private sector loans - Bank | 8.15% | 7.56% | 7.18% | 58 bps | 97 bps
Private sector loans - Consolidated* | 9.10% | 8.47% | 8.05% | 62 bps | 104 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
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Government services | n.m. | n.m. | n.m. | n.m. | n.m.
Non-financial public sector | n.m. | n.m. | n.m. | n.m. | n.m.
Financial Sector | 0.61% | 0.84% | 1.08% | (24)bps | (48)bps
Agricultural and Livestock | 8.34% | 5.09% | 4.17% | 325 bps | 417 bps
Mining products | 3.52% | 3.23% | 3.85% | 28 bps | (33)bps
Other manufacturing | 10.50% | 11.64% | 11.00% | (113)bps | (49)bps
Electricity, oil,water and sanitary services | 0.42% | 0.31% | 0.04% | 10 bps | 37 bps
Wholesale and retail trade | 6.97% | 5.63% | 7.24% | 134 bps | (27)bps
Transport | 1.61% | 1.55% | 1.04% | 6 bps | 57 bps
Services | 3.35% | 1.69% | 0.76% | 166 bps | 259 bps
Others | 8.88% | 13.96% | 13.19% | (508)bps | (431)bps
Construction | 1.28% | 0.75% | 0.62% | 53 bps | 67 bps
Consumer | 54.53% | 55.30% | 57.01% | (77)bps | (248)bps
Total gross loans and other financing | 100% | 100% | 100% |  |

| 19

Asset Quality

ASSET QUALITY | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Commercial non-performing portfolio (1) | 1,270 | 985 | 4,696 | 28.9% | (73.0%)
Total commercial portfolio | 258,269 | 240,983 | 222,276 | 7.2% | 16.2%
Commercial non-performing portfolio / Total commercial portfolio | 0.49% | 0.41% | 2.11% | 8 bps | (162)bps
Retail non-performing portfolio (1) | 7,354 | 6,682 | 9,925 | 10.1% | (25.9%)
Total retail portfolio | 503,956 | 476,889 | 559,039 | 5.7% | (9.9%)
Retail non-performing portfolio / Total retail portfolio | 1.46% | 1.40% | 1.78% | 6 pbs | (32)pbs
Total non-performing portfolio (1) | 8,624 | 7,667 | 14,621 | 12.5% | (41.0%)
Total portfolio | 762,225 | 717,872 | 781,315 | 6.2% | (2.4%)
Total non-performing portfolio / Total portfolio | 1.13% | 1.07% | 1.87% | 6 bps | (74)bps
Allowances | 20,890 | 18,162 | 26,595 | 15.0% | (21.5%)
Allowances /Total non-performing portfolio | 242.23% | 236.89% | 181.90% | 535 bps | 6,034 bps
Quarterly change in Write-offs | 1,795 | 1,986 | 4,934 | (9.6%) | (63.6%)
Write offs / Total portfolio | 0.24% | 0.28% | 0.63% | (4)bps | (40)bps
Cost of Risk (CoR) | 4.09% | 2.65% | 1.94% | 143 bps | 215 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

As of 4Q22, asset quality ratio or NPL (total non-performing portfolio / total portfolio) was 1.13%, compared to the 1.07% recorded in 3Q22. The mild increase is mainly explained by an increase in the retail non-performing portfolio.

During 4Q22, IFRS 9 impairment loss model parameters were updated, resulting in higher loan loss allowances in the quarter.

This had an impact on the coverage ratio (allowances / total non-performing portfolio), which was 242.23%, above the 236.89% recorded in 3Q22; and on the cost of risk (loan loss allowances / average total loans), which reached 4.09% on 4Q22, above 3Q22’s 2.65%.

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 12/31/2022
Other financial assets | 561 | 125 | - | 113 | (337) | 462
Loans and other financing | 26,595 | 3,095 | 2,944 | 1,275 | (13,020) | 20,889
Other debt securities | 29 | 23 | - | - | (20) | 32
Eventual commitments | 1,663 | 1,373 | 638 | 34 | (1,013) | 2,695
Total allowances | 28,848 | 4,616 | 3,582 | 1,422 | (14,390) | 24,078
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 4Q22 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.

| 20

Public Sector Exposure

NET PUBLIC DEBT EXPOSURE* | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Treasury and Government securities | 197,964 | 184,713 | 159,630 | 7.2% | 24.0%
Treasury and National Government | 197,964 | 184,713 | 159,630 | 7.2% | 24.0%
National Treasury Public Debt in AR$ | 194,175 | 177,526 | 156,477 | 9.4% | 24.1%
National Treasury Public Debt in USD | 3,520 | 955 | - | 268.6% | N/A
National Treasury Public Debt in AR$ linked to US dollars | 268 | 6,232 | 3,152 | (95.7%) | (91.5%)
Loans to the Public Sector | 1 | 3 | 1 | (66.7%) | -
AR$ Subtotal | 194,176 | 177,529 | 156,478 | 9.4% | 24.1%
USD Subtotal** | 3,788 | 7,187 | 3,152 | (47.3%) | 20.2%
Total Public Debt Exposure | 197,965 | 184,716 | 159,631 | 7.2% | 24.0%
B.C.R.A. Exposure | 538,150 | 579,165 | 477,714 | (7.1%) | 12.7%
Instruments | 485,576 | 467,397 | 209,779 | 3.9% | 131.5%
Leliqs | 483,450 | 436,968 | 209,779 | 10.6% | 130.5%
Notaliqs | - | 29,392 | - | (100.0%) | N/A
Lediv | 2,126 | 1,037 | - | 105.0% | N/A
Loans to the B.C.R.A. | 9 | 4 | - | 125.0% | N/A
Repo / Pases | 52,565 | 111,765 | 267,935 | (53.0%) | (80.4%)
% Public sector exposure (Excl. B.C.R.A.) / Total assets | 10.1% | 9.8% | 8.0% | 27 pbs | 215 pbs
*Deposits at the Central Bank used to comply with reserve requirements not included. Includes assets used as collateral.
**Includes USD-linked Treasury public debt in AR$

4Q22 total public sector exposure (excluding BCRA) totaled $198.0 billion, growing 7.2% or $13.2 billion QoQ, and 24.0% or $38.3 billion YoY. The quarterly increase is explained by a greater position in National Treasury bills in pesos, as well as National Treasury bonds, National Treasury Bonds Private 0.70 Badlar Rate maturing on November 2027 among them, used for reserve requirement integration.

Short-term liquidity is mostly allocated in BCRA instruments, which increased 3.9% QoQ and increased 131.5% YoY in real terms. Nonetheless, total exposure to the BCRA fell 7.1% in 4Q22, mainly due to a lower REPO position (at quarter-end).

Exposure to the public sector (excluding BCRA) represents 10.1% of total assets, above the 9.8% in 3Q22 and the 8.0% in 4Q21.

| 21

Deposits

TOTAL DEPOSITS | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Total deposits | 1,313,820 | 1,247,635 | 1,379,790 | 5.3% | (4.8%)
Non-financial Public Sector | 9,680 | 10,876 | 25,858 | (11.0%) | (62.6%)
Financial Sector | 340 | 744 | 423 | (54.3%) | (19.6%)
Non-financial private sector and residents abroad | 1,303,800 | 1,236,015 | 1,353,509 | 5.5% | (3.7%)
Non-financial private sector and residents abroad - AR$ | 1,024,311 | 994,995 | 1,036,027 | 2.9% | (1.1%)
Checking accounts | 253,397 | 260,869 | 331,913 | (2.9%) | (23.7%)
Savings accounts | 246,717 | 213,312 | 272,361 | 15.7% | (9.4%)
Time deposits | 390,380 | 360,061 | 306,066 | 8.4% | 27.5%
Investment accounts | 125,945 | 153,312 | 116,624 | (17.9%) | 8.0%
Other | 7,872 | 7,441 | 9,063 | 5.8% | (13.1%)
Non-financial private sector and res. abroad - Foreign Currency | 279,489 | 241,020 | 317,482 | 16.0% | (12.0%)
Checking accounts | 68 | 56 | 46 | 21.4% | 47.8%
Savings accounts | 252,320 | 214,016 | 283,173 | 17.9% | (10.9%)
Time deposits | 24,393 | 24,314 | 30,673 | 0.3% | (20.5%)
Other | 2,708 | 2,634 | 3,590 | 2.8% | (24.6%)
% of total portfolio in the private sector in AR$ | 78.6% | 80.5% | 76.5% | (194)bps | 202 bps
% of total portfolio in the private sector in Foregin Currency | 21.4% | 19.5% | 23.5% | 194 bps | (202)bps
% of time deposits with UVA adjustments / Total AR$ Deposits | 3.9% | 6.0% | 3.9% | (202)bps | 3 bps

DEPOSITS TO THE NON-FINANCIAL PRIVATE SECTOR AND RES. ABROAD IN FOREIGN CURRENCY | BBVA ARGENTINA CONSOLIDATED
In millions of USD |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
FX rate* | 177.1 | 147.3 | 102.8 | 20.2% | 72.4%
Non-financial private sector and residents abroad - Foreign Currency (USD) | 1,578 | 1,395 | 1,586 | 13.1% | (0.5%)
*Wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500, as of the end of period.

As of 4Q22, total deposits reached $1.3 trillion, increasing 5.3% or $66.2 billion QoQ, and decreasing 4.8% or $66.0 billion YoY.

Private non-financial sector deposits in 4Q22 totaled $1.3 trillion, growing 5.5% QoQ, and falling 3.7% YoY.

Private non-financial sector deposits in pesos totaled $1.0 trillion, increasing 2.9% compared to 3Q22, and falling 1.1% compared to 4Q21. The quarterly change is mainly affected by a 15.7% increase in sight deposits, followed by time deposits by 8.4%. This was partially offset by a decrease in investment accounts by 17.9%.

Private non-financial sector deposits in foreign currency expressed in pesos grew 16.0% QoQ and fell 12.0% YoY. Measured in U.S. dollars, these deposits increased 13.1% QoQ mainly due to a seasonal effect, and fell 0.5% YoY.

| 22

PRIVATE DEPOSITS | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Non-financial private sector and residents abroad | 1,303,800 | 1,236,015 | 1,353,509 | 5.5% | (3.7%)
Sight deposits | 763,082 | 698,328 | 900,146 | 9.3% | (15.2%)
Checking accounts | 253,465 | 260,925 | 331,959 | (2.9%) | (23.6%)
Savings accounts | 499,037 | 427,328 | 555,534 | 16.8% | (10.2%)
Other | 10,580 | 10,075 | 12,653 | 5.0% | (16.4%)
Time deposits | 540,718 | 537,687 | 453,363 | 0.6% | 19.3%
Time deposits | 414,773 | 384,375 | 336,739 | 7.9% | 23.2%
Investment accounts | 125,945 | 153,312 | 116,624 | (17.9%) | 8.0%
% of sight deposits over total private deposits | 58.8% | 56.9% | 67.1% | 194 bps | (830)bps
% of time deposits over total private deposits | 41.2% | 43.1% | 32.9% | (194)bps | 830 bps

As observed in previous quarters, deposits were impacted by the effect of inflation. In spite of this, in nominal terms, BBVA Argentina managed to increase the sight deposits, time deposits and total deposits by 28.2%, 18.0% and 23.5% respectively, above quarterly inflation.

PRIVATE DEPOSITS - NON RESTATED FIGURES | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Sight deposits | 763,082 | 595,369 | 462,105 | 28.2% | 65.1%
Time deposits | 540,718 | 458,412 | 232,741 | 18.0% | 132.3%
Total deposits | 1,313,820 | 1,063,689 | 708,336 | 23.5% | 85.5%

As of 4Q22, the Bank’s transactional deposits (checking accounts and savings accounts) represented 57.3% of total non-financial private deposits, totaling $752.5 billion, versus 55.2% in 3Q22.

MARKET SHARE - PRIVATE SECTOR DEPOSITS | BBVA ARGENTINA CONSOLIDATED
In % |  |  |  | ∆ bps
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Private sector Deposits - Consolidated* | 6.64% | 6.68% | 6.95% | (4)pbs | (31)pbs
Based on daily BCRA information. Capital balance as of the last day of each quarter.
* Consolidates PSA, VWFS & Rombo

| 23

Other Sources of Funds

OTHER SOURCES OF FUNDS | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Other sources of funds | 380,545 | 366,275 | 334,395 | 3.9% | 13.8%
Central Bank | 88 | 69 | 89 | 27.5% | (1.1%)
Banks and international organizations | 560 | 143 | - | 291.6% | N/A
Financing received from local financial institutions | 19,225 | 17,149 | 22,815 | 12.1% | (15.7%)
Corporate bonds | 191 | 369 | 980 | (48.2%) | (80.5%)
Equity | 360,481 | 348,545 | 310,511 | 3.4% | 16.1%

In 4Q22, other sources of funds totaled $380.5 billion, growing 3.9% or $14.2 billion QoQ, and 13.8% or $46.2 billion YoY.

Quarterly increase is mostly explained by the 3.4% increase in equity, followed by a 12.1% increase in financing received from local financial institutions taken by consolidated companies.

Liquid Assets

TOTAL LIQUID ASSETS | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Total liquid assets | 1,015,758 | 979,042 | 1,053,678 | 3.8% | (3.6%)
Cash and deposits in banks | 296,292 | 238,420 | 425,321 | 24.3% | (30.3%)
Debt securities at fair value through profit or loss | 25,520 | 24,102 | 2,721 | 5.9% | n.m
Government securities | 10,905 | 7,119 | 2,721 | 53.2% | 300.8%
Liquidity bills of B. C. R. A. | 14,615 | 16,983 | - | (13.9%) | N/A
Net REPO transactions | 52,565 | 111,765 | 267,935 | (53.0%) | (80.4%)
Other debt securities | 641,381 | 604,755 | 357,701 | 6.1% | 79.3%
Government securities | 170,359 | 154,152 | 147,922 | 10.5% | 15.2%
Liquidity bills of B. C. R. A. | 468,896 | 449,566 | 209,779 | 4.3% | 123.5%
Internal bills of B.C.R.A. | 2,126 | 1,037 | - | 105.0% | N/A
Liquid assets / Total Deposits | 77.3% | 78.5% | 76.4% | (116)bps | 95 bps

In 4Q22, liquid assets were $1.0 trillion, growing 3.8% or $36.7 billion compared to 3Q22, and falling 3.6% or $37.9 billion compared to 4Q21, mainly due to an increase in cash and deposits in banks and Other debt securities, the latter mainly comprised by LELIQ.

In the quarter, the liquidity ratio (liquid assets / total deposits) reached 77.3%. Liquidity ratio in local and foreign currency reached 74.1% and 88.9% respectively.

| 24

Solvency

MINIMUM CAPITAL REQUIREMENT | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Minimum capital requirement | 100,158 | 95,859 | 111,574 | 4.5% | (10.2%)
Credit risk | 70,376 | 68,299 | 81,640 | 3.0% | (13.8%)
Market risk | 1,481 | 964 | 442 | 53.6% | 234.9%
Operational risk | 28,301 | 26,596 | 29,492 | 6.4% | (4.0%)
Integrated Capital - RPC (1)* | 319,632 | 307,992 | 283,993 | 3.8% | 12.5%
Ordinary Capital Level 1 ( COn1) | 362,210 | 350,091 | 313,410 | 3.5% | 15.6%
Deductible items COn1 | (47,679) | (44,509) | (36,623) | (7.1%) | (30.2%)
Additional Capital Level 2 (COn2) | 5,101 | 2,410 | 7,205 | 111.6% | (29.2%)
Excess Capital |  |  |  |  |
Integration excess | 219,474 | 212,133 | 172,419 | 3.5% | 27.3%
Excess as % of minimum capital requirement | 219.1% | 221.3% | 154.5% | (217)bps | 6,459 bps
Risk-weighted assets (RWA, according to B.C.R.A. regulation) (2) | 1,226,351 | 1,173,373 | 1,364,944 | 4.5% | (10.2%)
Regulatory Capital Ratio (1)/(2) | 26.1% | 26.2% | 20.8% | (18)pbs | 526 pbs
TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) | 25.6% | 26.0% | 20.3% | (40)pbs | 537 pbs
* RPC includes 100% of quarterly results

BBVA Argentina continues to show strong solvency indicators on 4Q22. Capital ratio reached 26.1%, practically stable versus 3Q22’s 26.2%. Tier 1 ratio was 25.6% and capital excess over regulatory requirement was $219.5 billion or 219.1%.

| 25

BBVA Argentina Asset Management S.A.

MUTUAL FUNDS ASSETS | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
FBA Renta Pesos | 407,850 | 361,348 | 342,398 | 12.9% | 19.1%
FBA Renta Fija Plus | 10,875 | 16,521 | 32,454 | (34.2%) | (66.5%)
FBA Ahorro Pesos | 6,854 | 7,737 | 5,931 | (11.4%) | 15.6%
FBA Horizonte | 386 | 430 | 719 | (10.2%) | (46.3%)
FBA Calificado | 2,195 | 1,755 | 1,771 | 25.1% | 23.9%
FBA Acciones Argentinas | 2,198 | 1,410 | 1,399 | 55.9% | 57.1%
FBA Acciones Latinoamericanas | 1,041 | 918 | 1,027 | 13.4% | 1.4%
FBA Bonos Argentina | 1,454 | 1,554 | 1,535 | (6.4%) | (5.3%)
FBA Bonos Globales | 28 | 32 | 232 | (12.5%) | (87.9%)
FBA Renta Mixta | 705 | 752 | 569 | (6.3%) | 23.9%
FBA Gestión I | 43 | 47 | 68 | (8.5%) | (36.8%)
FBA Horizonte Plus | 12 | 14 | 39 | (14.3%) | (69.2%)
FBA Retorno Total I | 19 | 22 | 39 | (13.6%) | (51.3%)
FBA Renta Publica I | 238 | 186 | 53 | 28.0% | 349.1%
FBA Renta Fija Local | 3 | 2 | 4 | 50.0% | (25.0%)
Total assets | 433,901 | 392,728 | 388,238 | 10.5% | 11.8%

MARKET SHARE - MUTUAL FUNDS | BBVA ASSET MANAGEMENT
In % |  |  |  | ∆ bps
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Mutual funds | 6.23% | 5.76% | 5.53% | 47 bps | 23 bps
Source: Cámara Argentina de Fondos Comunes de Inversión

| 26

Other Events

Main Relevant Events

| · | As of December 20, 2022, the Board of Directors decided to make modifications within the Front Line Management. In this regard, as from December 31, 2022, Mr. Carlos Elizalde ceases to be Director of Corporate & Investment Banking, and Mrs. María Verónica Incera is hereby appointed to perform his duties as from January 1, 2023.

Digital Transformation

Digitalization continued to accelerate during 4Q22. Active retail digital clients total more than 2.3 million with a 61.8% penetration over total active clients (3.73 million), versus a penetration of 61.5% in 4Q21. Active retail mobile clients reach 2.0 million, representing a 55.4% penetration in 4Q22, versus a penetration of 53.2% in 4Q21. Digital and mobile transactions[4] increased 28.4% in 4Q22 YoY.

On 4Q22, retail digital sales measured in units reached 83.9% of total sales (vs. 80.0% in 4Q21) and represent 56.9% of the Banks total sales measured in monetary value (vs. 53.2% in 4Q21).

In 4Q22, new client acquisition through digital channels over traditional ones was 72%, while it was 66% on 4Q21.

SMEs Productive investment financing credit lines – December 2022

As of December 31, 2022, total loans granted by the Ban complied with what was requested by the BCRA. The following table shows the evolution of disbursements:

Quota | Calculation term | Minimum amount to be allocated | Simple average of daily balances | Disbursed amount
2020 Quota | Del 16.10.2020 al 31.03.2021 - “B” 12161 | 19,730,132 | 25,291,147 | 39,279,053
2021 Quota | Del 01.04.2021 al 30.09.2021 - “B” 12164 | 24,449,302 | 30,093,764 | 41,734,860
2021/2022 Quota | Del 01.10.2021 al 31.03.2022 - “B” 12238 | 32,447,048 | 43,434,402 | 62,449,414
2022 Quota | Del 01.04.2022 al 30.09.2022 - “B” 12326 | 42,867,291 | 63,022,460 | 98,200,990
2020 Quota | Del 01.10.2022 al 31.03.2023 – “B” 12413 – “A” 7612 | 42,867,291 | (*) | (*)

(*) As of the date of these financial statements, the term reported by Communication “B” 12413 has not expired.

3 Calculation parameters were modified as of 1Q22 and comparable periods.

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

| 27

Main Regulatory Changes

Dividend distribution suspension. Branch closure. (Communication “A” 7659, 12/15/2022). The BCRA decided: (i) To suspend the distribution of results on behalf of financial institutions as of January 1, 2023 and until December 31, 2023, (ii) to establish that financial institutions must have prior BCRA authorization until December 31, 2023 to proceed on branch closures and/or relocation of branches in detailed cases, (iii) allows Group B and C financial institutions to have the option to postpone until January 2024, the application of item 5.5 of IFRS 9 impairment regulation.

Reserve requirement. (Communication “A” 7661, 12/22/2022). The BCRA extends: (i) as of January 1, 2023, and until June 30, 2023, regulations on Reserve Requirement (related to deductions of peso requirements) for cash withdrawals on ATMs in cities comprised in categories II to VI, (ii) until December 31, 2027, the limit on endorsement of checks and bills of exchange in the “checking account regulation” and “sight accounts opened in Cooperative Credit Financial Institutions” regulations, (iii) as of January 1, 2023, $6 million is the new amount to be integrated as collateral of deposits.

REPO rates. (Press release, 01/18/2023). The BCRA informs that as of January 18, 2023, it decided to increase the REPO rate by 200 bps. The 1-day REPO rate will be 72% and the 1-day reverse REPO rate will be 97%.

REPO rates for Mutual Funds. (Communication “B” 12465, 01/23/2023). The BCRA informs that, pursuant to Communication “A” 7579 – REPO rates for Mutual Funds – it has decided to fix the rate at 95% of the current 1-day REPO rate with financial institutions.

REPO rates for Mutual Funds. (Communication “B” 12467, 01/26/2023). The BCRA has decided to fix the REPO rate for mutual funds at 85% of the current 1-day REPO rate with financial institutions.

Securities-guaranteed transactions. (Communication “A” 7683, 01/26/2023). The BCRA authorizes financial institutions to get funding through securities-guaranteed transactions in pesos in exchanges authorized by the CNV. These are excluded from obligations comprised in the determination of reserve requirements.

Debtor classification. (Communication “A” 7687, 02/02/2023). Until December 31, 2023, the BCRA implements the provisions related to the Agricultural Emergency Law – which extends late-payment periods in 45 days for stages 1, 2 and 3. It also states that this will not imply an improvement of the assigned classification before the declaration of emergency, not its application further than the stated period. This provision is applied to information provided on the Debtor base (Central de deudores).

| 28

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.

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.

| 29

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.

| 30

Balance Sheet

BALANCE SHEET | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Assets |  |  |  |  |
Cash and deposits in banks | 296,292 | 238,420 | 425,321 | 24.3% | (30.3%)
Cash | 117,456 | 111,575 | 144,641 | 5.3% | (18.8%)
Financial institutions and correspondents | 178,836 | 126,845 | 280,680 | 41.0% | (36.3%)
BCRA | 161,414 | 113,014 | 276,575 | 42.8% | (41.6%)
Other local and foreign financial institutions | 17,422 | 13,831 | 4,105 | 26.0% | 324.4%
Debt securities at fair value through profit or loss | 25,520 | 24,102 | 2,721 | 5.9% | n.m
Derivatives | 2,268 | 2,389 | 5,486 | (5.1%) | (58.7%)
Repo transactions | 52,565 | 111,765 | 267,935 | (53.0%) | (80.4%)
Other financial assets | 32,743 | 29,621 | 28,588 | 10.5% | 14.5%
Loans and other financing | 717,097 | 670,752 | 738,344 | 6.9% | (2.9%)
Non-financial public sector | 1 | 3 | 1 | (66.7%) | -
B.C.R.A | 9 | 4 | - | 125.0% | N/A
Other financial institutions | 4,232 | 5,479 | 8,201 | (22.8%) | (48.4%)
Non-financial private sector and residents abroad | 712,855 | 665,266 | 730,142 | 7.2% | (2.4%)
Other debt securities | 645,104 | 608,931 | 360,349 | 5.9% | 79.0%
Financial assets pledged as collateral | 46,195 | 54,511 | 39,506 | (15.3%) | 16.9%
Current income tax assets | 39 | 204 | 4,391 | (80.9%) | (99.1%)
Investments in equity instruments | 938 | 903 | 4,319 | 3.9% | (78.3%)
Investments in subsidiaries and associates | 3,467 | 3,618 | 3,996 | (4.2%) | (13.2%)
Property and equipment | 96,104 | 95,020 | 99,191 | 1.1% | (3.1%)
Intangible assets | 9,618 | 8,776 | 7,160 | 9.6% | 34.3%
Deferred income tax assets | 1,520 | 1,459 | 1,707 | 4.2% | (11.0%)
Other non-financial assets | 29,142 | 27,603 | 17,145 | 5.6% | 70.0%
Non-current assets held for sale | 225 | 237 | 588 | (5.1%) | (61.7%)
Total Assets | 1,958,837 | 1,878,311 | 2,006,747 | 4.3% | (2.4%)
Liabilities |  |  |  |  |
Deposits | 1,313,820 | 1,247,635 | 1,379,790 | 5.3% | (4.8%)
Non-financial public sector | 9,680 | 10,876 | 25,858 | (11.0%) | (62.6%)
Financial sector | 340 | 744 | 423 | (54.3%) | (19.6%)
Non-financial private sector and residents abroad | 1,303,800 | 1,236,015 | 1,353,509 | 5.5% | (3.7%)
Derivatives | 335 | 650 | 612 | (48.5%) | (45.3%)
Other financial liabilities | 118,433 | 126,247 | 119,978 | (6.2%) | (1.3%)
Financing received from the B.C.R.A. and other financial institutions | 19,873 | 17,360 | 22,904 | 14.5% | (13.2%)
Corporate bonds issued | 191 | 369 | 980 | (48.2%) | (80.5%)
Current income tax liabilities | 7,248 | 556 | 690 | n.m | n.m
Provisions | 8,669 | 8,272 | 10,934 | 4.8% | (20.7%)
Deferred income tax liabilities | 6,692 | 8,471 | 15,991 | (21.0%) | (58.2%)
Other non-financial liabilities | 117,692 | 114,565 | 138,111 | 2.7% | (14.8%)
Total Liabilities | 1,592,953 | 1,524,125 | 1,689,990 | 4.5% | (5.7%)
Equity |  |  |  |  |
Share Capital | 613 | 613 | 613 | - | -
Non-capitalized contributions | 77,583 | 77,583 | 77,583 | - | -
Capital adjustments | 55,996 | 55,996 | 55,996 | - | -
Reserves | 174,962 | 174,962 | 136,645 | - | 28.0%
Retained earnings | 11 | 11 | (2,947) | - | 100.4%
Other accumulated comprehensive income | (7,499) | (2,098) | 1,357 | (257.4%) | n.m
Income for the period | 58,815 | 41,478 | 41,264 | 41.8% | 42.5%
Equity attributable to owners of the Parent | 360,481 | 348,545 | 310,511 | 3.4% | 16.1%
Equity attributable to non-controlling interests | 5,403 | 5,641 | 6,246 | (4.2%) | (13.5%)
Total Equity | 365,884 | 354,186 | 316,757 | 3.3% | 15.5%
Total Liabilities and Equity | 1,958,837 | 1,878,311 | 2,006,747 | 4.3% | (2.4%)

| 31

Balance Sheet – Five quarters

BALANCE SHEET | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted |  |  |  |  |
| 4Q22 | 3Q22 | 2Q22 | 1Q22 | 4Q21
Assets |  |  |  |  |
Cash and deposits in banks | 296,292 | 238,420 | 265,220 | 333,917 | 425,321
Cash | 117,456 | 111,575 | 108,992 | 125,252 | 144,641
Financial institutions and correspondents | 178,836 | 126,845 | 156,228 | 208,665 | 280,680
B.C.R.A | 161,414 | 113,014 | 138,661 | 194,550 | 276,575
Other local and foreign financial institutions | 17,422 | 13,831 | 17,567 | 14,115 | 4,105
Debt securities at fair value through profit or loss | 25,520 | 24,102 | 28,805 | 17,423 | 2,721
Derivatives | 2,268 | 2,389 | 617 | 1,671 | 5,486
Repo transactions | 52,565 | 111,765 | 165,707 | 113,146 | 267,935
Other financial assets | 32,743 | 29,621 | 29,781 | 36,453 | 28,588
Loans and other financing | 717,097 | 670,752 | 732,156 | 681,071 | 738,344
Non-financial public sector | 1 | 3 | 4 | 1 | 1
B.C.R.A | 9 | 4 | 4 | 5 | -
Other financial institutions | 4,232 | 5,479 | 7,460 | 7,662 | 8,201
Non-financial private sector and residents abroad | 712,855 | 665,266 | 724,688 | 673,403 | 730,142
Other debt securities | 645,104 | 608,931 | 612,007 | 603,546 | 360,349
Financial assets pledged as collateral | 46,195 | 54,511 | 36,521 | 38,778 | 39,506
Current income tax assets | 39 | 204 | 1,131 | 3,879 | 4,391
Investments in equity instruments | 938 | 903 | 750 | 861 | 4,319
Investments in subsidiaries and associates | 3,467 | 3,618 | 3,740 | 3,774 | 3,996
Property and equipment | 96,104 | 95,020 | 98,318 | 97,823 | 99,191
Intangible assets | 9,618 | 8,776 | 8,398 | 7,700 | 7,160
Deferred income tax assets | 1,520 | 1,459 | 1,488 | 1,687 | 1,707
Other non-financial assets | 29,142 | 27,603 | 25,369 | 19,684 | 17,145
Non-current assets held for sale | 225 | 237 | 588 | 588 | 588
Total Assets | 1,958,837 | 1,878,311 | 2,010,596 | 1,962,001 | 2,006,747
Liabilities |  |  |  |  |
Deposits | 1,313,820 | 1,247,635 | 1,393,650 | 1,338,086 | 1,379,790
Non-financial public sector | 9,680 | 10,876 | 20,807 | 29,219 | 25,858
Financial sector | 340 | 744 | 414 | 491 | 423
Non-financial private sector and residents abroad | 1,303,800 | 1,236,015 | 1,372,429 | 1,308,376 | 1,353,509
Derivatives | 335 | 650 | 210 | 549 | 612
Other financial liabilities | 118,433 | 126,247 | 113,008 | 115,944 | 119,978
Financing received from the B.C.R.A. and other financial institutions | 19,873 | 17,360 | 29,410 | 21,326 | 22,904
Corporate bonds issued | 191 | 369 | 565 | 754 | 980
Current income tax liabilities | 7,248 | 556 | 350 | 919 | 690
Provisions | 8,669 | 8,272 | 9,831 | 9,758 | 10,934
Deferred income tax liabilities | 6,692 | 8,471 | 6 | 19,421 | 15,991
Other non-financial liabilities | 117,692 | 114,565 | 128,843 | 129,413 | 138,111
Total Liabilities | 1,592,953 | 1,524,125 | 1,675,873 | 1,636,170 | 1,689,990
Equity |  |  |  |  |
Share Capital | 613 | 613 | 613 | 613 | 613
Non-capitalized contributions | 77,583 | 77,583 | 77,583 | 77,583 | 77,583
Capital adjustments | 55,996 | 55,996 | 55,996 | 55,996 | 55,996
Reserves | 174,962 | 174,962 | 174,963 | 136,646 | 136,645
Retained earnings | 11 | 11 | 10 | 38,360 | (2,947)
Other accumulated comprehensive income | (7,499) | (2,098) | (10,227) | 3,579 | 1,357
Income for the period | 58,815 | 41,478 | 29,938 | 7,026 | 41,264
Equity attributable to owners of the Parent | 360,481 | 348,545 | 328,876 | 319,803 | 310,511
Equity attributable to non-controlling interests | 5,403 | 5,641 | 5,847 | 6,028 | 6,246
Total Equity | 365,884 | 354,186 | 334,723 | 325,831 | 316,757
Total Liabilities and Equity | 1,958,837 | 1,878,311 | 2,010,596 | 1,962,001 | 2,006,747

| 32

Balance Sheet – Foreign Currency Exposure

FOREIGN CURRENCY EXPOSURE | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Assets |  |  |  |  |
Cash and deposits in banks | 248,413 | 212,893 | 291,823 | 16.7% | (14.9%)
Debt securities at fair value through profit or loss | 3,520 | 1,260 | - | 179.4% | N/A
Other financial assets | 8,459 | 8,146 | 5,626 | 3.8% | 50.4%
Loans and other financing | 38,534 | 38,156 | 37,077 | 1.0% | 3.9%
Non-financial public sector | - | 1 | - | (100.0%) | N/A
Other financial institutions | 1 | 1 | 327 | - | (99.7%)
Non-financial private sector and residents abroad | 38,533 | 38,153 | 36,750 | 1.0% | 4.9%
Other debt securities | 5,466 | 9,719 | 4,186 | (43.8%) | 30.6%
Financial assets pledged as collateral | 10,771 | 10,948 | 10,955 | (1.6%) | (1.7%)
Investments in equity instruments | 60 | 48 | 70 | 25.0% | (14.3%)
Total foreign currency assets | 315,223 | 281,170 | 349,737 | 12.1% | (9.9%)
Liabilities |  |  |  |  |
Deposits | 286,006 | 247,135 | 323,807 | 15.7% | (11.7%)
Non-Financial Public Sector | 6,429 | 6,046 | 6,257 | 6.3% | 2.7%
Financial Sector | 86 | 68 | 68 | 26.5% | 26.5%
Non-financial private sector and residents abroad | 279,491 | 241,020 | 317,482 | 16.0% | (12.0%)
Other financial liabilities | 21,896 | 20,537 | 20,015 | 6.6% | 9.4%
Financing received from the B.C.R.A. and other financial institutions | 1,110 | 765 | 991 | 45.1% | 12.0%
Other non financial liabilities | 11,787 | 9,637 | 8,421 | 22.3% | 40.0%
Total foreign currency liabilities | 320,799 | 278,074 | 353,234 | 15.4% | (9.2%)
| 0 | 0 | 0 |  |
Foreign Currency Net Position - AR$ | (5,576) | 3,096 | (3,497) | (280.1%) | (59.5%)
Foreign Currency Net Position - USD | (31) | 21 | (34) | (249.8%) | 7.5%
*Wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500, as of the end of period.

| 33

Income Statement

INCOME STATEMENT | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted |  |  |  | ∆ %
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Interest income | 201,717 | 169,270 | 108,898 | 19.2% | 85.2%
Interest expense | (95,645) | (79,441) | (43,481) | (20.4%) | (120.0%)
Net interest income | 106,072 | 89,829 | 65,417 | 18.1% | 62.1%
Fee income | 19,777 | 19,370 | 22,537 | 2.1% | (12.2%)
Fee expenses | (9,610) | (8,674) | (11,186) | (10.8%) | 14.1%
Net fee income | 10,167 | 10,696 | 11,351 | (4.9%) | (10.4%)
Net income from financial instruments at fair value through P&L | 4,998 | 4,401 | (439) | 13.6% | n.m
Net loss from write-down of assets at amortized cost and fair value through OCI | (584) | 119 | (34) | n.m | n.m
Foreign exchange and gold gains | 368 | 2,609 | 3,174 | (85.9%) | (88.4%)
Other operating income | 5,476 | 5,278 | 4,086 | 3.8% | 34.0%
Loan loss allowances | (7,348) | (4,811) | (865) | (52.7%) | n.m
Net operating income | 119,149 | 108,121 | 82,690 | 10.2% | 44.1%
Personnel benefits | (18,328) | (16,256) | (15,027) | (12.7%) | (22.0%)
Administrative expenses | (17,405) | (17,228) | (16,612) | (1.0%) | (4.8%)
Depreciation and amortization | (3,350) | (2,416) | (2,736) | (38.7%) | (22.4%)
Other operating expenses | (18,378) | (15,424) | (14,270) | (19.2%) | (28.8%)
Operating expenses | (57,461) | (51,324) | (48,645) | (12.0%) | (18.1%)
Operating income | 61,688 | 56,797 | 34,045 | 8.6% | 81.2%
Income from associates and joint ventures | 119 | (450) | (224) | 126.4% | 153.1%
Income from net monetary position | (36,539) | (41,501) | (19,922) | 12.0% | (83.4%)
Income before income tax | 25,268 | 14,846 | 13,899 | 70.2% | 81.8%
Income tax | (8,168) | (3,514) | (4,611) | (132.4%) | (77.1%)
Income for the period | 17,100 | 11,332 | 9,288 | 50.9% | 84.1%
Owners of the parent | 17,337 | 11,540 | 9,239 | 50.2% | 87.7%
Non-controlling interests | (237) | (208) | 49 | (13.9%) | n.m
Other comprehensive Income (1) | (5,402) | 8,129 | 2,024 | (166.5%) | (366.9%)
Total comprehensive income | 11,698 | 19,461 | 11,312 | (39.9%) | 3.4%
(1) Net of Income Tax.

| 34

Income Statement – Twelve month accumulated

INCOME STATEMENT | BBVA ARGENTINA CONSOLIDATED
In millions of AR$ - Inflation adjusted |  |  |  |  |
| 4Q22 | 3Q22 | 2Q22 | 1Q22 | 4Q21
Interest income | 201,717 | 169,270 | 142,531 | 115,832 | 108,898
Interest expense | (95,645) | (79,441) | (64,827) | (49,997) | (43,481)
Net interest income | 106,072 | 89,829 | 77,704 | 65,835 | 65,417
Fee income | 19,777 | 19,370 | 20,593 | 21,740 | 22,537
Fee expenses | (9,610) | (8,674) | (5,847) | (10,606) | (11,186)
Net fee income | 10,167 | 10,696 | 14,746 | 11,134 | 11,351
Net income from financial instruments at fair value through P&L | 4,998 | 4,401 | 1,921 | 6,857 | (439)
Net loss from write-down of assets at amortized cost and fair value through OCI | (584) | 119 | 811 | (57) | (34)
Foreign exchange and gold gains | 368 | 2,609 | 2,228 | 2,872 | 3,174
Other operating income | 5,476 | 5,278 | 4,744 | 5,664 | 4,086
Loan loss allowances | (7,348) | (4,811) | (3,513) | (3,808) | (865)
Net operating income | 119,149 | 108,121 | 98,641 | 88,497 | 82,690
Personnel benefits | (18,328) | (16,256) | (18,180) | (15,213) | (15,027)
Administrative expenses | (17,405) | (17,228) | (17,541) | (15,968) | (16,612)
Depreciation and amortization | (3,350) | (2,416) | (2,464) | (2,743) | (2,736)
Other operating expenses | (18,378) | (15,424) | (14,670) | (13,014) | (14,270)
Operating expenses | (57,461) | (51,324) | (52,855) | (46,938) | (48,645)
Operating income | 61,688 | 56,797 | 45,786 | 41,559 | 34,045
Income from associates and joint ventures | 119 | (450) | 313 | (448) | (224)
Income from net monetary position | (36,539) | (41,501) | (34,035) | (31,432) | (19,922)
Income before income tax | 25,268 | 14,846 | 12,064 | 9,679 | 13,899
Income tax | (8,168) | (3,514) | 10,667 | (2,908) | (4,611)
Income for the period | 17,100 | 11,332 | 22,731 | 6,771 | 9,288
Owners of the parent | 17,337 | 11,540 | 22,912 | 7,026 | 9,239
Non-controlling interests | (237) | (208) | (181) | (255) | 49
Other comprehensive Income (OCI)(1) | (5,402) | 8,129 | (13,806) | 2,223 | 2,024
Total comprehensive income | 11,698 | 19,461 | 8,925 | 8,994 | 11,312
(1) Net of Income Tax.

| 35

Ratios

QUARTERLY ANNUALIZED RATIOS | BBVA ARGENTINA CONSOLIDATED
In % |  |  |  | ∆ bps
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Profitability |  |  |  |  |
Efficiency Ratio | 53.0% | 64.8% | 67.3% | (1,181)bps | (1,428)bps
ROA | 3.6% | 2.4% | 1.8% | 120 bps | 180 bps
ROE | 19.4% | 13.5% | 11.8% | 590 bps | 760 bps
Liquidity |  |  |  |  |
Liquid assets / Total Deposits | 77.3% | 78.5% | 76.4% | (116)bps | 95 bps
Capital |  |  |  |  |
Regulatory Capital Ratio | 26.06% | 26.25% | 20.81% | (18)bps | 526 bps
TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) | 25.65% | 26.04% | 20.28% | (39)bps | 537 bps
Asset Quality |  |  |  |  |
Total non-performing portfolio / Total portfolio | 1.13% | 1.07% | 1.87% | 6 bps | (74)bps
Allowances /Total non-performing portfolio | 242.23% | 236.89% | 181.90% | 535 bps | 6,034 bps
Cost of Risk | 4.09% | 2.65% | 1.94% | 143 bps | 215 bps

ACCUMULATED ANNUALIZED RATIOS | BBVA ARGENTINA CONSOLIDATED
In % |  |  |  | ∆ bps
| 4Q22 | 3Q22 | 4Q21 | QoQ | YoY
Profitability |  |  |  |  |
Efficiency Ratio | 63.9% | 69.0% | 69.1% | (505)bps | (512)bps
ROA | 3.0% | 2.9% | 2.0% | 10 bps | 100 bps
ROE | 17.5% | 16.8% | 13.5% | 70 bps | 400 bps
Liquidity |  |  |  |  |
Liquid assets / Total Deposits | 77.3% | 78.5% | 76.4% | (116)bps | 95 bps
Capital |  |  |  |  |
Regulatory Capital Ratio | 26.1% | 26.2% | 20.8% | (18)bps | 526 bps
TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) | 25.6% | 26.0% | 20.3% | (39)bps | 537 bps
Asset Quality |  |  |  |  |
Total non-performing portfolio / Total portfolio | 1.13% | 1.07% | 1.87% | 6 bps | (74)bps
Allowances /Total non-performing portfolio | 242.23% | 236.89% | 181.90% | 535 bps | 6,034 bps
Cost of Risk | 2.73% | 2.25% | 2.03% | 48 bps | 70 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

Carmen Morillo Arroyo

Chief Financial Officer

Inés Lanusse

Investor Relations Officer

Belén Fourcade

Investor Relations

investorelations-arg@bbva.com

ir.bbva.com.ar

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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: | March 6, 2023 |  | By: | /s/ Carmen Morillo Arroyo
|  |  |  | Name: | Carmen Morillo Arroyo
|  |  |  | Title: | Chief Financial Officer