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- **Market Share Expansion**: Private sector loan market share rises to 11.39%, deposits reach 10.09% amid high interest rate volatility.
- **Resilient Asset Quality**: NPL ratio at 3.28% (vs. system average ~4%), with commercial loans performing strongly (0.10% NPL).
- **2026 Guidance**: ROE targeting mid-single digits, loan growth 45-50% YoY, and capital ratio ~17%.
- **Policy Impact**: Central Bank reserve rule changes to improve liquidity, supporting Q4 NIM recovery and 2026 growth.

**【Management Opening Remarks】**
- Q3 2025 revenue growth driven by 6.7% real-term loan expansion to private sector, achieving a market share of 11.39%.
- Deposits grew 10.2% in real terms, with market share rising to 10.09%, despite 70% peak deposit rates during the quarter.
- NPL ratio at 3.28% (below system average of ~4%), with prudent risk management maintaining asset quality.
- Liquidity ratio at 44.3% and capital ratio at 16.7%, despite temporary sovereign debt valuation impacts.

**【CFO Financial Commentary】**
- Inflation-adjusted net income ARS 38.1 billion (-39.7% QoQ), driven by higher loan loss provisions (+37.1%) and lower net interest income (-6.6%).
- Net fee income surged 37.5% QoQ, offsetting margin pressure through active pricing and cost control.
- Operating expenses down 3.4% QoQ, with efficiency improvements in software, advertising, and armored transport.
- Guidance for 2026: ROE in mid-single digits, capital ratio ~17%, and loan growth 45-50% YoY (real terms).

**【Q&A Key Highlights】**
- **Loan Growth Sustainability**: CFO confirms 45-50% real-term loan growth target, driven by U.S. dollar-denominated commercial loans, not refinancing. Retail loan growth cautious due to NPL risks.
- **NPL Outlook**: NPL ratio expected to peak in Q4 2025, stabilizing in 2026 as high interest rates ease. Cost of risk ~6.6% in Q3, projected to decline next year.
- **Central Bank Policy**: Relaxation of reserve requirements (75% daily compliance vs. 100% prior) and reduced reserve ratios will improve liquidity and NIM in Q4.
- **Capital Management**: Target capital ratio ~17% by year-end, with no immediate plans for capital raises despite regulatory changes impacting risk-weighted assets.
- **NIM Trends**: Q3 NIM pressure temporary; Q4 NIM expected to improve as asset repricing outpaces liability costs. 2026 NIM outlook stable due to pricing power in corporate lending.

Banco BBVA Argentina S.A. (BBAR) Q3 2025 Earnings Call Transcript

- **Market share leadership**: Private loans market share +107bps to 11.61%, deposits share +215bps to 9.64%.
- **Growth targets**: 50% real YoY loan growth, ROE in low double digits.
- **Risk management**: NPL ratio 2.28% (vs. system 2.55%), capital ratio 18.4%.
- **Fee momentum**: 20% YoY fee growth, despite QoQ dip due to one-time provisions.
- **Macro resilience**: Withstanding high rates through liquidity management, stable NIMs.

**【Management Opening Remarks】**
- **Macroeconomic stabilization**: GDP growth projected at 5.5% YoY in 2025, reversing 2024's 1.7% decline. Inflation expected to stabilize near 28% YoY by year-end.
- **Regulatory reforms**: IMF agreement lifted FX controls, boosting foreign currency trading and cross-border credit growth. Gold and FX valuation gains contributed to Q2 results.
- **Credit outperformance**: Market share of private loans rose 107bps to 11.61% (June 2025 vs. June 2024), with 43% YoY loan growth vs. system's 39%.
- **Deposit growth**: Private deposits grew 32% YoY (vs. 17% system), with market share at 9.64% (up from 7.5%).

**【CFO Financial Commentary】**
- **Q2 2025 Results**: Inflation-adjusted net income ARS 59.6 billion (-31.1% QoQ), ROE 7.6%, ROA 1.2%. Key drivers:
  - **Net interest income**: ARS 591.8 billion (+3.1% QoQ) due to loan growth and CER/UVA adjustments.
  - **Fee income**: ARS 94.1 billion (-11.1% QoQ) due to credit card provision adjustments, but +20% YoY.
  - **Provisions**: Loan loss allowances +42.3% QoQ (real loan growth +34.6% in overdrafts, +26.9% in other loans).
  - **Cost control**: Operating expenses ARS 483.1 billion (-7.5% QoQ), efficiency ratio 56.5%.
- **Balance sheet**: Loans-to-deposits ratio 88% (vs. 78% Q4 2024), capital ratio 18.4% (excess over regulatory requirement 123.9%).

**【Q&A Highlights】**
- **Loan growth guidance**: Maintaining 50% real YoY loan growth target, focusing on credit cards and SMEs amid retail NPL concerns.
- **Profitability outlook**: ROE expected in low double digits, driven by fee growth and stable NIMs (19.1% Q2 vs. 50% peak in 2023).
- **Liquidity management**: Neutral-to-slightly-negative short-term impact from high interest rates, but stable in 2-3 months.
- **FX trading**: Limited materiality (15-20% of balance sheet), with ARS 1,400/USD target for year-end.
- **Fee strategy**: 20% YoY growth in fees, targeting peer-level margins through pricing optimization.

Banco BBVA Argentina S.A. (BBAR) Q2 2025 Earnings Call Transcript

- **Economic Recovery Drives Growth**: 5.5% GDP expansion and 35% inflation target underpin 45-50% real loan growth, down from prior 60-66% guidance due to liquidity constraints.
- **Profitability Improves**: 16.2% QoQ net income growth fueled by 20.7% fee income surge, offsetting 100bps NIM decline to normalized levels.
- **Capital Strength**: 21.5% capital ratio with 202bps boost from Basel IV, supporting conservative growth while awaiting regulatory reforms.
- **Currency Dynamics**: Dollar loan dominance (25.4% QoQ) reflects demand, but long-term mortgage growth hinges on funding innovation.

**【Macroeconomic Environment & Strategic Adjustments】**
- Argentina's economy is expected to grow 5.5% in 2025, with inflation projected to converge to 35% by year-end, supported by IMF reforms and a floating exchange rate system.
- BBVA Argentina's new 2025-2029 global strategy focuses on customer-centricity, capital generation, and AI-driven efficiency, aiming to differentiate amid digital competition.

**【Q1 2025 Financial Highlights】**
- Inflation-adjusted net income reached ARS81.6 billion, up 16.2% QoQ, driven by 20.7% growth in fee income (led by credit cards and loans) and 13.8% decline in operating expenses.
- Loan book grew 11.2% QoQ in real terms, with standout growth in consumer loans (22.9%), mortgages (23.1%), and foreign currency loans (25.4%).
- Deposit market share expanded to 9.15%, with 7.8% growth in peso deposits and 20.9% surge in investment accounts.
- Capital ratio improved to 21.5%, benefiting from Basel IV alignment reducing operational risk requirements by 94.4%.

**【Q&A Key Takeaways】**
- **Growth Guidance**: Revised 2025 loan growth to 45-50% (down from 60-65%) due to liquidity constraints; deposit growth revised to 25% (down from 40%).
- **Net Interest Margin (NIM)**: NIM decline of 100bps QoQ reflects normalization post-high inflation; further soft declines expected as inflation moderates.
- **Currency Strategy**: Dollar loan growth (25.4% QoQ) outpaced peso loans, but tempered by funding conservatism; long-term mortgage growth requires securitization or bond market deepening.
- **Economic Assumptions**: 2025 GDP +5.5%, inflation 35%, exchange rate ~ARS1,700 (aligned with inflation).

Banco BBVA Argentina S.A. (BBAR) Q1 2025 Earnings Call Transcript

- **Economic Recovery**: 5.5% GDP growth in 2025 vs. 1.8% contraction in 2024, with inflation targeting 30%.
- **Loan Growth Leadership**: 60-65% real loan growth in 2025, outpacing system average of 40-45%.
- **Profitability Stability**: ROE expected to remain around 12-13%, supported by 51% loan-to-asset ratio.
- **Digital Dominance**: 88% digital customer acquisition, 73.5% of sales by value through digital channels.
- **Capital Strength**: 19.5% capital ratio, 138.5% excess over regulatory requirements.
- **Risk Management**: NPL ratio at 1.13%, lowest in the system, with stable asset quality.


**【Opening Remarks - Economic Overview】**
- Argentina's economy is recovering with 2024 GDP contraction of 1.8% and expected 5.5% growth in 2025.
- Inflation moderation: Q4 2024 inflation at 8.03%, down from 12.1% in Q3, with 2025 forecast of 30% or lower.
- Exchange rate stability and reduced country risk (from 1,900bps to 700bps in 2024) support banking sector growth.

**【Digital Channel Performance】**
- 88% of new customers acquired digitally in Q4 2024 (vs. 78% in 2023).
- Digital sales represent 91% of units and 73.5% of total sales by value.

**【Financial Results - Q4 2024】**
- Inflation-adjusted net income: ARS64.7 billion (-39.6% QoQ), ROE 9.5%, ROA 1.7%.
- Key drivers: 
  - 48.1% decline in operating income due to higher loan loss provisions, lower net fees, and reduced interest income.
  - 16.2% improvement in net monetary position loss vs. Q3.
- NIM: 35% (vs. 37.3% in 2023), impacted by 100% to 32% decline in monetary policy rate.

**【2024 Full Year Performance】**
- Net income: ARS357.7 billion (-0.4% YoY), ROE 12.5%, ROA 2.5%.
- Loan growth: +75% YoY (ARS7.6 trillion), with 61% YoY increase in peso loans and 194.6% YoY in foreign currency loans.
- Deposit growth: +23.5% YoY in peso deposits, +27.8% YoY in foreign currency deposits.
- Market share: 11.31% of private sector loans (vs. 9.35% in 2023), 8.72% of private deposits.

**【Q&A Highlights】**
- **2025 Growth Outlook**: 
  - Loans: 60-65% real growth (vs. 40-45% system average).
  - GDP: 5.5%, inflation: 30%, monetary policy rate: 24% by end-2025.
- **Profitability**: ROE expected to remain around 12-13% (vs. 13% in 2023).
- **Capital Management**: Dividend payout in 2025 likely lower than 2024's ARS400 million, subject to regulatory approval.
- **Asset Quality**: NPL ratio at 1.13%, stable with low risk of deterioration.
- **Funding Strategy**: Deposit growth (25% YoY) and corporate bond issuance to support loan expansion.
- **Loan Mix**: 56.7% commercial loans (vs. 50.7% in 2023), with focus on mortgages and personal loans.


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