• Net Income: ARS99.2 billion, decreasing 21.6% quarter over quarter.

• ROAE: 16.9% for the quarter.

• ROAA: 2.9% for the quarter.

• Net Interest Income: ARS460.3 billion, falling 39.5% quarter over quarter.

• Interest Income: ARS760.2 billion, falling 30.3% compared to the previous quarter.

• Interest Expenses: ARS299.9 billion, increasing 9.3% quarter over quarter.

• Net Fee Income: ARS71.1 billion, increasing 7.9% over the quarter.

• Operating Expenses: ARS316.6 billion, decreasing 17.6% quarter over quarter.

• Efficiency Ratio: 59.2%, up from 55.3% in the previous quarter.

• Private Sector Loans: ARS5.5 trillion, increasing 26.5% quarter over quarter in real terms.

• Total Deposits: ARS8.5 trillion, increasing 30.9% quarter over quarter.

• Capital Ratio: 22.2%.

• Liquid Assets: ARS5.7 trillion, increasing 26.6% quarter over quarter.

• Warning! GuruFocus has detected 6 Warning Sign with BBAR.

Release Date: November 21, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Banco BBVA Argentina SA (NYSE:BBAR) reported a significant increase in digital customer acquisition, reaching 83% by the end of September 2024, up from 80% a year ago.

• Retail digital sales represented 92.6% of total sales in units and 73.7% in monetary value, indicating strong digital engagement.

• The bank's private sector loans increased by 26.5% quarter over quarter in real terms, with notable growth in consumer loans and credit cards.

• Total deposits increased by 30.9% quarter over quarter, with a significant rise in private non-financial sector deposits in foreign currency.

• BBVA Argentina maintained strong solvency indicators with a capital ratio of 22.2% and capital excess over regulatory requirements at 172.4%.

Negative Points

• Inflation-adjusted net income decreased by 21.6% quarter over quarter, impacting the bank's profitability.

• Net interest income fell by 39.5% quarter over quarter due to lower interest income from REPOs and CPI-linked bonds.

• Operating results declined by 41.3% due to lower operating income, primarily from reduced interest income.

• The efficiency ratio increased to 59.2% from 55.3% in the previous quarter, indicating higher relative expenses.

• The bank's exposure to the public sector, excluding the Central Bank, decreased by 6.4%, reflecting reduced public sector engagement.

Q & A Highlights

Q: Can you provide an overview of the economic environment and its impact on BBVA Argentina's performance in the third quarter of 2024? A: Ines Lanusse, IR Contact Officer, explained that the third quarter of 2024 saw significant fiscal consolidation and relative exchange rate stability, contributing to a moderation of inflation. Despite a sharp contraction in the first half of the year, there are signs of economic recovery. BBVA Research forecasts a 4% decline in GDP for 2024, followed by a 6% expansion in 2025. Inflation is expected to reduce to 125% by year-end, down from 211% in the same period of 2023.