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 November 2021
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
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| 1. | Banco BBVA Argentina S.A. reports consolidated third quarter earnings for fiscal year 2021. |
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Banco BBVA Argentina S.A. announces
Third Quarter 2021 results
Buenos Aires, November 24, 2021 – Banco BBVA Argentina S.A (NYSE; BYMA; MAE: BBAR; LATIBEX: XBBAR) (“BBVA Argentina” or “BBVA” or “the Bank”) announced today its consolidated results for the third quarter (3Q21), ended on September 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 2020 and 2021 have been updated according to IAS 29 reporting to reflect the accumulated effect of inflation adjustment for each period up to September 30, 2021.
3Q21 Highlights
| · | BBVA Argentina’s inflation adjusted net income in 3Q21 was $3.4 billion, 57.1% lower than the $7.9 billion reported on the second quarter of 2021 (2Q21), and 37.6% lower than the $5.4 billion reported on the third quarter of 2020 (3Q20). |
| · | In 3Q21, BBVA Argentina posted an inflation adjusted average return on assets (ROAA) of 1.4% and an inflation adjusted average return on equity (ROAE) of 9.3%. |
| · | In terms of activity, total consolidated financing to the private sector in 3Q21 totaled $339.9 billion, contracting in real terms 2.8% compared to 2Q21, and 13.8% compared to 3Q20. In the quarter, the decrease was mainly driven by the fall in prefinancing and financing of exports and other loans by 40.1%, and 13.9% respectively. BBVA’s consolidated market share of private sector loans reached 8.08% as of 3Q21. |
| · | Total consolidated deposits in 3Q21 totaled $630.8 billion, contracting 5.2% in real terms during the quarter, and growing 5.3% in the year. Quarterly decrease was mainly explained by sight deposits, especially savings accounts and checking accounts, which fell 9.3% and 8.6% respectively. The Bank’s consolidated market share of private deposits reached 7.02% as of 3Q21. |
| · | As of 3Q21, the non-performing loan ratio (NPL) reached 2.54%, with a 181.76% coverage ratio. |
| · | The accumulated efficiency ratio in 3Q21 was 69.7%, below 2Q21’s 70.1%, and above 3Q20’s 62.9%. |
| · | As of 3Q21, BBVA Argentina reached a regulatory capital ratio of 23.5%, entailing an $88.5 billion or 187.7% excess over minimum regulatory requirement. Tier I ratio was 22.9%. |
| · | Total liquid assets represented 76.9% of the Bank’s total deposits as of 3Q21. |
Message from the CFO
“Conflicts and drawbacks generated by the COVID-19 pandemic began to cease during the third quarter of 2021, thanks to the progress in vaccination campaigns and a decline in cases. Nonetheless, the uncertainty of the current political scenario remains, in the middle of an electoral process and definitions to be taken regarding the so-necessary economic plan linked to negotiations with the International Monetary Fund.
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BBVA Argentina’s operating income in 3Q21 was the product of an improvement in the net interest and fee income, offset by higher administrative expenses that took place in the quarter.
As of September 2021, BBVA Argentina reached an NPL ratio of 2.54%, quite below the last available information for the system. Regarding liquidity and solvency indicators, the Bank ended the quarter with ratios of 76.9% and 23.5% respectively, levels which, without a doubt, would enable to attend the growth of business that could come together with an economic recovery.
Meanwhile, the Bank actively monitors its business, financial conditions and operating results, in the aim of keeping a competitive position to face contextual challenges.
Regarding digitalization, our service offering has evolved in such way that by the end of September 2021, digital client penetration reached 74% from 71% a year back, while that of mobile clients reached 63% from 59% in the same period. Trend aims towards a certain stabilization, considering that the pandemic has caused an important shift towards the adoption of digital channels by clients.
Lastly, in terms of responsible banking, within the context of its compromise with U.N.’s Sustainable Development Goals (SDG), BBVA Argentina has begun participating in the Consejo Empresario Argentino para el Desarrollo Sostenible (CEADS), the local division of the World Business Council for Sustainable Development (WBCSD).”
Ernesto R. Gallardo, CFO at BBVA Argentina
3Q21 Conference Call
Monday, November 29 - 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 transitory exceptions: (i) the adjustment in valuation established by the B.C.R.A. applied to the valuation of the remaining investment the Bank keeps of Prisma Medios de Pago S.A. (“Prisma”), and (ii) the temporary exclusion of the application of the IFRS 9 impairment model for non-financial public sector debt instruments.
As of 1Q20, the Bank started to inform its inflation adjusted results pursuant to IAS 29 reporting. To facilitate comparison, figures of comparable quarters of 2020 and 2021 have been updated according to IAS 29 reporting to reflect the accumulated effect of inflation adjustment for each period up to September 30, 2021.
The information in this press release contains unaudited financial information that consolidates, line item by line item, all of the banking activities of BBVA Argentina, including: BBVA Asset Management Argentina S.A., Consolidar AFJP-undergoing liquidation proceeding, PSA Finance Argentina Compañía Financiera S.A. (“PSA”) and Volkswagen Financial Services Compañía Financiera S.A (“VWFS”).
BBVA Consolidar Seguros S.A. is disclosed on a consolidated basis recorded as Investments in associates (reported under the proportional consolidation method), and the corresponding results are reported as “Income from associates”), same as Rombo Compañía Financiera S.A. (“Rombo”), Play Digital S.A., Openpay Argentina S.A. and Interbanking S.A.
Financial statements of subsidiaries have been elaborated as of the same dates and periods as Banco BBVA Argentina S.A.’s. In the case of consolidated companies PSA and VWFS, financial statements were prepared considering the B.C.R.A. accounting framework for institutions belonging to “Group C”, without considering the model established by the IFRS 9 5.5. “Impairment” section for periods starting as of January 1, 2022.
The information published by the BBVA Group for Argentina is prepared according to IFRS, without considering the temporary exceptions established by BCRA.
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Quarterly Results
| Income Statement | BBVA ARG Consolidated | Chg (%) | |||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Net Interest Income | 29,209 | 26,563 | 25,389 | 10.0% | 15.0% |
| Net Fee Income | 6,186 | 5,933 | 4,582 | 4.3% | 35.0% |
| Net income from measurement of financial instruments at fair value through P&L | 856 | 1,368 | 1,351 | (37.4%) | (36.6%) |
| Net income from write-down of assets at amortized cost and at fair value through OCI | (37) | (18) | (1,358) | (105.6%) | 97.3% |
| Foreign exchange and gold gains | 1,171 | 1,291 | 2,467 | (9.3%) | (52.5%) |
| Other operating income | 1,583 | 1,980 | 2,287 | (20.1%) | (30.8%) |
| Loan loss allowances | (2,455) | (2,323) | (1,414) | (5.7%) | (73.6%) |
| Net operating income | 36,513 | 34,794 | 33,304 | 4.9% | 9.6% |
| Personnel benefits | (7,381) | (6,949) | (6,988) | (6.2%) | (5.6%) |
| Adminsitrative expenses | (8,801) | (6,424) | (6,648) | (37.0%) | (32.4%) |
| Depreciation and amortization | (1,195) | (1,299) | (1,277) | 8.0% | 6.4% |
| Other operating expenses | (5,864) | (6,079) | (4,127) | 3.5% | (42.1%) |
| Operarting expenses | (23,241) | (20,751) | (19,040) | (12.0%) | (22.1%) |
| Operating income | 13,272 | 14,043 | 14,264 | (5.5%) | (7.0%) |
| Income from associates | (89) | 190 | (17) | (146.8%) | (423.5%) |
| Income from net monetary position | (8,285) | (9,545) | (7,039) | 13.2% | (17.7%) |
| Net income before income tax | 4,898 | 4,688 | 7,208 | 4.5% | (32.0%) |
| Income tax | (1,512) | 3,203 | (1,782) | (147.2%) | 15.2% |
| Net income for the period | 3,386 | 7,891 | 5,426 | (57.1%) | (37.6%) |
| Owners of the parent | 3,380 | 7,889 | 5,428 | (57.2%) | (37.7%) |
| Non-controlling interests | 6 | 2 | (2) | 200.0% | 400.0% |
| Other comprehensive Income (OCI) (1) | (221) | 82 | 1,620 | (369.5%) | (113.6%) |
| Total comprehensive income | 3,165 | 7,973 | 7,046 | (60.3%) | (55.1%) |
BBVA Argentina 3Q21 net income was $3.4 billion, falling 57.1% or $4.5 billion quarter-over-quarter (QoQ) and 37.6% or $2.0 billion year-over-year (YoY).
Quarterly results are explained mainly by greater operating expenses, related to higher administrative and personnel benefit expenses. The contraction is offset by a better net operating income enhanced by higher net fee income and interest income, in addition to a lower result from the net monetary position.
It must be taken into consideration that in 2Q21, results included the reversal of the provision recorded in accordance to the Memorandum N°6/2017 issued by the BCRA, in connection with the repayment of income tax inflation adjustments for 2017 and 2018 fiscal years, for a total of $4.7 billion (at current value), as a result of an assessment, funded on legal and tax advisors’ opinions, in which the Bank considered that probabilities of getting a final instance favorable court ruling are higher for those fiscal years.
The accumulated net income for the first nine months of 2021 was $14.9 billion, 1.1% above the accumulated net income for the first nine months of 2020, of $14.7 billion. The accumulated ROE as of 3Q21 is 14.0% while the accumulated ROA is 2.1%.
Excluding the effects of the actions of declaratory judgment on the tax line, 2Q21 net income would have been $3.6 billion. As of 3Q21, a lower quarterly fall of 6.7% would have been observed, instead of 57.1%.
On the other hand, the accumulated net income for the first nine months net of the effect of actions of declaratory judgment on the tax line (including effects in 1Q21 for $1.4 billion, at current value), would have been $9.5 billion, decreasing 35.6% versus the accumulated net income for the first nine months of 2020. This would have meant an accumulated ROE on 3Q21 of 8.9% and an accumulated ROA of 1.4%.
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| Earnings per share | BBVA ARG Consolidated | Chg (%) | |||
| 3Q21 | 2Q21 | 3Q20 | QoQ | YoY | |
| Financial Statement information | |||||
| Net income for the period attributable to owners of the parent (in AR$ millions, inflation adjusted) | 3,380 | 7,889 | 5,428 | (57.2%) | (37.7%) |
| Total shares outstanding (1) | 612,710 | 612,710 | 612,710 | - | - |
| Market information | |||||
| Closing price of ordinary share at BYMA (in AR$) | 244.75 | 184.35 | 68.00 | 32.8% | 259.9% |
| Closing price of ADS at NYSE (in USD) | 3.81 | 3.25 | 2.40 | 17.2% | 58.8% |
| Book value per share (in AR$) | 242.21 | 237.04 | 259.78 | 2.2% | (6.8%) |
| Price-to-book ratio (BYMA price) (%) | 1.01 | 0.78 | 0.26 | 29.9% | 286.0% |
| Earnings per share (in AR$) | 5.52 | 12.88 | 8.86 | (57.2%) | (37.7%) |
| Earnings per ADS(2) (in AR$) | 16.55 | 38.63 | 26.58 | (57.2%) | (37.7%) |
(1) In thousands of shares. | |||||
| (2) Each ADS accounts for 3 ordinary shares | |||||
Net Interest Income
| Net interest income | BBVA ARG Consolidated | Chg (%) | |||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Net Interest Income | 29,209 | 26,563 | 25,389 | 10.0% | 15.0% |
| Interest Income | 52,040 | 47,723 | 39,817 | 9.0% | 30.7% |
| From government securities | 12,592 | 12,036 | 13,013 | 4.6% | (3.2%) |
| From private securities | 30 | 30 | - | - | N/A |
| Interest from loans and other financing | 20,153 | 19,457 | 22,532 | 3.6% | (10.6%) |
| Financial Sector | 251 | 146 | 386 | 71.9% | (35.0%) |
| Overdrafts | 1,854 | 1,696 | 3,121 | 9.3% | (40.6%) |
| Discounted Instruments | 3,158 | 3,158 | 3,145 | - | 0.4% |
| Mortgage loans | 407 | 409 | 483 | (0.5%) | (15.7%) |
| Pledge loans | 1,292 | 1,267 | 984 | 2.0% | 31.3% |
| Consumer Loans | 3,414 | 3,254 | 3,143 | 4.9% | 8.6% |
| Credit Cards | 5,800 | 5,044 | 6,266 | 15.0% | (7.4%) |
| Financial leases | 231 | 217 | 176 | 6.5% | 31.3% |
| Loans for the prefinancing and financing of exports | 215 | 264 | 445 | (18.6%) | (51.7%) |
| Other loans | 3,531 | 4,002 | 4,383 | (11.8%) | (19.4%) |
| Premiums on reverse REPO transactions | 12,593 | 7,951 | 843 | 58.4% | n.m |
| CER/UVA clause adjustment | 6,672 | 8,249 | 3,166 | (19.1%) | 110.7% |
| Other interest income | - | - | 263 | N/A | (100.0%) |
| Interest expenses | 22,831 | 21,160 | 14,428 | 7.9% | 58.2% |
| Deposits | 20,933 | 18,913 | 13,125 | 10.7% | 59.5% |
| Checking accounts | 4,494 | 3,137 | 594 | 43.3% | n.m |
| Savings accounts | 112 | 130 | 66 | (13.8%) | 69.7% |
| Time deposits and Investment accounts | 16,327 | 15,646 | 12,465 | 4.4% | 31.0% |
| Other liabilities from financial transactions | 168 | 249 | 595 | (32.5%) | (71.8%) |
| Interfinancial loans received | 450 | 680 | 427 | (33.8%) | 5.4% |
| Premiums on REPO transactions | 2 | - | - | N/A | N/A |
| CER/UVA clause adjustment | 1,279 | 1,315 | 263 | (2.7%) | 386.3% |
| Other | 1 | 3 | 18 | (66.7%) | (94.4%) |
Net interest income for 3Q21 was $29.2 billion, increasing 10.0% or $2.6 billion QoQ, and 15.0% or $3.8 billion YoY. In 3Q21, interest income increased above interest expense, mainly due to a greater position in BCRA liquidity bills (LELIQ) and higher interests from premiums on reverse REPO transactions, both explained by a greater liquidity derived from a lower credit demand.
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In 3Q21, interest income totaled $52.0 billion, increasing 9.0% compared to 2Q21 and 30.7% compared to 3Q20. Quarterly increase is mainly driven by a 58.4% surge in premiums from reverse REPO transactions, a 15.0% increase in income from credit cards, and a 4.6% growth in income from government securities. The whole increase was offset by a fall in the CER/UVA clause adjustments line by 19.1%, given a lower yield on securities linked to such indexes.
Income from government securities grew 4.6% compared to 2Q21, and fell 3.2% compared to 3Q20. This is explained by a larger position in BCRA liquidity bills (LELIQ). 92% of these results are explained by government securities at fair value through Other Comprehensive Income (OCI), of which 71% are LELIQ, and 6% are securities at amortized cost (2022 National Treasury Bonds at fixed rate, used for reserve requirement integration).
Interest income from loans and other financing totaled $20.2 billion, increasing 3.6% QoQ and falling 10.6% YoY. Quarterly growth is mainly due to an increase in credit cards by 15.0 % and overdrafts by 9.3%. This was partially offset by an 11.8% fall in interests from other loans, especially due to lower activity from subsidiary companies.
Income from CER/UVA adjustments decreased 19.1% QoQ and increased 110.7% YoY. Quarterly decrease was driven by a lower increment in the UVA index, affecting credit linked to such index, and deriving in a contraction in yields from CER linked securities. 60% of income from interests from CER/UVA adjustments is explained by interests generated by bonds linked to such indexes.
Interest expenses totaled $22.8 billion, denoting a 7.9% increase QoQ and a 58.2% increase YoY. Quarterly growth is described by an increase in checking account expenses, partially offset by lower expenses by UVA/CER adjustments derived from time deposits linked to such indexes, due to the aforementioned lower increase in the UVA/CER index.
Interests from time deposits and investment accounts explain 71.5% of interest expenses, versus 73.9% the previous quarter. These expanded 4.4% QoQ and 31.0% YoY.
NIM
As of 3Q21, net interest margin (NIM) was 17.8%, lower than the 17.5% recorded on 2Q21. In 3Q21, NIM in pesos was 18.8% and 2.6% in U.S. dollars.
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| Assets & Liabilities Performance - Total | BBVA ARG Consolidated | ||||||||
| In millions of AR$. Rates and spreads in annualized % | 3Q21 | 2Q21 | 3Q20 | ||||||
| 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 | 652,644 | 52,040 | 31.6% | 610,111 | 47,723 | 31.4% | 622,294 | 39,817 | 25.4% |
| Debt securities | 318,488 | 29,179 | 36.3% | 262,264 | 24,490 | 37.5% | 180,840 | 15,125 | 33.2% |
| Loans to customers/financial institutions | 323,767 | 22,814 | 28.0% | 338,599 | 23,220 | 27.5% | 406,137 | 24,674 | 24.1% |
| Other assets | 10,389 | 47 | 1.8% | 9,248 | 12 | 0.5% | 35,317 | 18 | 0.2% |
| Total non interest-earning assets | 261,426 | 269,046 | 326,232 | ||||||
| Total Assets | 914,070 | 52,040 | 22.6% | 879,158 | 47,723 | 21.8% | 948,526 | 39,817 | 16.7% |
| Total interest-bearing liabilities | 489,350 | 22,831 | 18.5% | 466,635 | 21,160 | 18.2% | 472,719 | 14,428 | 12.1% |
| Sight deposits | 263,224 | 4,605 | 6.9% | 245,007 | 3,268 | 5.4% | 250,268 | 660 | 1.0% |
| Time deposits and investment accounts | 217,648 | 18,086 | 33.0% | 210,298 | 17,400 | 33.2% | 211,987 | 13,036 | 24.4% |
| Debt securities issued | 628 | 84 | 53.1% | 1,070 | 116 | 43.4% | 4,584 | 207 | 17.9% |
| Other liabilities | 7,850 | 56 | 2.8% | 10,259 | 376 | 14.7% | 5,879 | 525 | 35.4% |
| Total non-interest-bearing liabilities | 424,720 | 412,523 | 475,807 | ||||||
| Total liabilities and equity | 914,070 | 22,831 | 9.9% | 879,158 | 21,160 | 9.7% | 948,526 | 14,428 | 6.0% |
| NIM - Total | 17.8% | 17.5% | 16.2% | ||||||
| Spread - Total | 13.1% | 13.2% | 13.3% | ||||||
| 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 - AR$ | BBVA ARG Consolidated | ||||||||
| In millions of AR$. Rates and spreads in annualized % | 3Q21 | 2Q21 | 3Q20 | ||||||
| Average Balance | Interest Earned/Paid | Average Real Rate | Average Balance | Interest Earned/Paid | Average Real Rate | Average Balance | Interest Earned/Paid | Average Real Rate | |
| Total interest-earning assets | 609,184 | 51,690 | 33.7% | 558,542 | 47,239 | 33.9% | 558,275 | 39,087 | 27.8% |
| Debt securities | 318,487 | 29,179 | 36.3% | 262,264 | 24,490 | 37.5% | 178,847 | 15,125 | 33.6% |
| Loans to customers/financial institutions | 285,860 | 22,465 | 31.2% | 293,386 | 22,737 | 31.1% | 352,824 | 23,944 | 26.9% |
| Other assets | 4,837 | 46 | 3.8% | 2,892 | 11 | 1.5% | 26,605 | 18 | 0.3% |
| Total non interest-earning assets | 118,040 | - | 129,125 | - | 158,689 | - | - | ||
| Total Assets | 727,224 | 51,690 | 28.2% | 687,667 | 47,239 | 27.6% | 716,965 | 39,087 | 21.6% |
| Total interest-bearing liabilities | 359,024 | 22,771 | 25.2% | 332,270 | 21,080 | 25.4% | 311,391 | 14,377 | 18.3% |
| Savings accounts | 154,135 | 4,603 | 11.8% | 133,395 | 3,266 | 9.8% | 118,563 | 658 | 2.2% |
| Time deposits | 200,048 | 18,078 | 35.9% | 191,224 | 17,387 | 36.5% | 183,344 | 12,975 | 28.1% |
| Debt securities issued | 628 | 84 | 53.1% | 1,070 | 116 | 43.4% | 4,584 | 207 | 17.9% |
| Other liabilities | 4,213 | 6 | 0.6% | 6,581 | 310 | 18.9% | 4,900 | 537 | 43.5% |
| Total non-interest-bearing liabilities | 366,145 | - | 355,403 | - | 412,356 | - | - | ||
| Total liabilities and equity | 725,169 | 22,771 | 12.5% | 687,672 | 21,080 | 12.3% | 723,747 | 14,377 | 7.9% |
| NIM - AR$ | 18.8% | 18.8% | 17.6% | ||||||
| Spread - AR$ | 8.5% | 8.5% | 9.5% | ||||||
| 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. | |||||||||
| Assets & Liabilities Performance - Foreign Currency | BBVA ARG Consolidated | ||||||||
| In millions of AR$. Rates and spreads in annualized % | 3Q21 | 2Q21 | 3Q20 | ||||||
| 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 | 43,460 | 350 | 3.2% | 51,569 | 484 | 3.8% | 64,019 | 730 | 4.5% |
| Debt securities | 1 | - | - | - | - | - | 1,994 | - | - |
| Loans to customers/financial institutions | 37,907 | 349 | 3.7% | 45,214 | 483 | 4.3% | 53,313 | 730 | 5.4% |
| Other assets | 5,552 | 1 | 0.1% | 6,356 | 1 | 0.1% | 8,712 | 0 | 0.0% |
| Total non interest-earning assets | 143,386 | - | 139,921 | - | 167,543 | - | - | ||
| Total Assets | 186,846 | 350 | 0.7% | 191,491 | 484 | 1.0% | 231,561 | 730 | 1.3% |
| Total interest-bearing liabilities | 130,326 | 60 | 0.2% | 134,365 | 81 | 0.2% | 161,328 | 51 | 0.1% |
| Savings accounts | 109,089 | 2 | 0.0% | 111,613 | 2 | 0.0% | 131,705 | 2 | 0.0% |
| Time deposits and Investment accounts | 17,600 | 8 | 0.2% | 19,074 | 13 | 0.3% | 28,644 | 61 | 0.8% |
| Other liabilities | 3,637 | 50 | 5.5% | 3,678 | 66 | 7.1% | 979 | (12) | (4.9%) |
| Total non-interest-bearing liabilities | 58,575 | - | 57,120 | - | 63,452 | - | - | ||
| Total liabilities and equity | 188,901 | 60 | 0.1% | 191,485 | 81 | 0.2% | 224,779 | 51 | 0.1% |
| NIM - Foreign currency | 2.6% | 3.1% | 4.2% | ||||||
| Spread - Foreign currency | 3.0% | 3.5% | 4.4% | ||||||
| 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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Net Fee Income
| Net fee income | BBVA ARG Consolidated | Chg (%) | |||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Net Fee Income | 6,186 | 5,933 | 4,582 | 4.3% | 35.0% |
| Fee Income | 10,339 | 10,422 | 9,559 | (0.8%) | 8.2% |
| Linked to liabilities | 3,944 | 3,696 | 3,872 | 6.7% | 1.9% |
| From credit cards | 4,673 | 5,053 | 4,065 | (7.5%) | 15.0% |
| Linked to loans | 654 | 605 | 498 | 8.1% | 31.3% |
| From insurance | 437 | 458 | 483 | (4.6%) | (9.5%) |
| From foreign trade and foreign currency transactions | 474 | 487 | 514 | (2.7%) | (7.8%) |
| Other fee income | 157 | 122 | 127 | 28.7% | 23.6% |
| Fee expenses | 4,153 | 4,489 | 4,977 | (7.5%) | (16.6%) |
Net fee income as of 3Q21 totaled $6.2 billion, growing 4.3% or $253 million QoQ and 35.0% or $1.6 billion YoY.
In 3Q21, fee income totaled $10.3 billion, marginally decreasing 0.8% QoQ and increasing 8.2% YoY. The quarterly decrease is mainly explained by a fall in income from credit cards (due to a contrasting effect against the previous quarter because of commercial incentives being recognized in this line in 2Q21), and offset by fees linked to liabilities, the latter impacted by an increase in prices of ATMs and bundle products, and a greater activity in the wholesale segment.
Regarding fee expenses, these totaled $4.2 billion, contracting 7.5% QoQ and 16.6% YoY. Lower expenses are partially explained by lower digital sales expenses in 3Q21 which have been reclassified to administrative expenses, offset by the positive effect in 2Q21 of the revaluation of miles purchased in 2020 within the Latampass program, linked to the foreign exchange rate.
Net Income from Measurement of Financial Instruments at Fair Value and Foreign Exchange and Gold Gains/Losses
| Net Income from financial instruments at fair value (FV) through P&L | BBVA ARG Consolidated | Chg (%) | |||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Net Income from financial instruments at FV through P&L | 856 | 1,368 | 1,351 | (37.4%) | (36.6%) |
| Income from government securities | 639 | 664 | 1,238 | (3.8%) | (48.4%) |
| Income from private securities | (86) | (78) | (87) | (10.3%) | 1.1% |
| Interest rate swaps | 5 | 35 | 28 | (85.7%) | (82.1%) |
| Gains from foreign currency forward transactions | 298 | 747 | 151 | (60.1%) | 97.4% |
| Income from debt and equity instruments | - | - | 16 | N/A | (100.0%) |
| Other | - | - | 5 | N/A | (100.0%) |
In 3Q21, net income from financial instruments at fair value (FV) through P&L was $856 million, decreasing 37.4% or $512 million QoQ and 36.6% or $495 million YoY.
The main impact on these results is partially explained by a fall in the gains from foreign currency forward transactions line item, driven by a lower activity, plus a lower quarterly devaluation of the argentine peso compared to the inflation during the same period (3.1%[1] versus 9.3%[2] respectively).
The fall in income from government securities is mainly explained by a lower inflation versus the prior quarter (9% versus 11%), while most of the securities’ portfolio is allocated in CER-linked bonds.
[1] Taking into consideration wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500.
[2] Source: Instituto Nacional de Estadística y Censos (INDEC) –Change in Consumer Price Index between June and September 2021.
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| Differences in quoted prices of gold and foreign currency | BBVA ARG Consolidated | Chg (%) | |||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Foreign exchange and gold gains/(losses) (1) | 1,171 | 1,291 | 2,467 | (9.3%) | (52.5%) |
| From foreign exchange position | (348) | (69) | (297) | (404.3%) | (17.2%) |
| Income from purchase-sale of foreign currency | 1,519 | 1,359 | 2,764 | 11.8% | (45.0%) |
| Net income from financial instruments at FV through P&L (2) | 298 | 747 | 151 | (60.1%) | 97.4% |
| Income from foreign currency forward transactions | 298 | 747 | 151 | (60.1%) | 97.4% |
| Total differences in quoted prices of gold & foreign currency (1) + (2) | 1,469 | 2,038 | 2,618 | (27.9%) | (43.9%) |
In 3Q21, the total differences in quoted prices of gold and foreign currency showed profit for $1.5 billion, decreasing 27.9% or $569 million compared to 2Q21, mainly due to a 60.1% fall in income from foreign currency forward transactions.
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Other Operating Income
| Other operating income | BBVA ARG Consolidated | Chg (%) | |||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Operating Income | 1,583 | 1,980 | 2,287 | (20.1%) | (30.8%) |
| Rental of safe deposit boxes (1) | 379 | 376 | 396 | 0.8% | (4.3%) |
| Adjustments and interest on miscellaneous receivables (1) | 459 | 585 | 795 | (21.5%) | (42.3%) |
| Punitive interest (1) | 55 | 67 | - | (17.9%) | N/A |
| Loans recovered | 249 | 427 | 366 | (41.7%) | (32.0%) |
| Fee income from credit and debit cards (1) | 80 | 79 | 88 | 1.3% | (9.1%) |
| Income from initial recognition of public securities | 1 | - | - | N/A | N/A |
| Other Operating Income(2) | 360 | 446 | 642 | (19.3%) | (43.9%) |
| (1) Included in the efficiency ratio calculation | |||||
| (2) Includes some of the concepts used in the efficiency ratio calculation | |||||
In 3Q21 other operating income totaled $1.6 billion, falling 20.1% or $397 million QoQ, and 30.8% or $704 million YoY. The quarterly decrease is partially explained by a 41.7% fall in the loans recovered line item and a 21.5% decrease in adjustments and interest on miscellaneous receivables.
Operating Expenses
Personnel Benefits and Administrative Expenses
| Personnel Benefits and Adminsitrative Expenses | BBVA ARG Consolidated | Chg (%) | |||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Total Personnel Benefits and Adminsitrative Expenses | 16,182 | 13,373 | 13,636 | 21.0% | 18.7% |
| Personnel Benefits (1) | 7,381 | 6,949 | 6,988 | 6.2% | 5.6% |
| Administrative expenses (1) | 8,801 | 6,424 | 6,648 | 37.0% | 32.4% |
| Travel expenses | 35 | 40 | 42 | (12.5%) | (16.7%) |
| Outsourced administrative expenses | 981 | 503 | 499 | 95.0% | 96.6% |
| Security services | 240 | 217 | 253 | 10.6% | (5.1%) |
| Fees to Bank Directors and Supervisory Committee | 9 | 15 | 25 | (40.0%) | (64.0%) |
| Other fees | 363 | 291 | 352 | 24.7% | 3.1% |
| Insurance | 97 | 86 | 90 | 12.8% | 7.8% |
| Rent | 1,464 | 794 | 625 | 84.4% | 134.2% |
| Stationery and supplies | 11 | 7 | 14 | 57.1% | (21.4%) |
| Electricity and communications | 335 | 331 | 355 | 1.2% | (5.6%) |
| Advertising | 592 | 235 | 282 | 151.9% | 109.9% |
| Taxes | 1,585 | 1,465 | 1,513 | 8.2% | 4.8% |
| Maintenance costs | 820 | 769 | 769 | 6.6% | 6.6% |
| Armored transportation services | 982 | 900 | 884 | 9.1% | 11.1% |
| Other administrative expenses | 1,287 | 771 | 945 | 66.9% | 36.2% |
| Headcount* | 5,888 | 5,924 | 6,107 | (36) | (219) |
| BBVA (Bank) | 5,790 | 5,828 | 6,008 | (38) | (218) |
| Associates | 98 | 96 | 99 | 2 | (1) |
| Total branches** | 243 | 243 | 247 | - | (4) |
| Efficiency ratio | 69.0% | 67.9% | 78.7% | 106 bps | (977)bps |
| Accumulated Efficiency Ratio | 69.7% | 70.1% | 62.9% | (44)bps | 679 bps |
| Efficiency ratio - Excl. Inflation adjustment | 51.9% | 47.1% | 57.4% | 480 bps | (551)bps |
| Accumulated Efficiency Ratio - Excl. Inflation adjustment | 49.7% | 48.5% | 50.3% | 118 bps | (60)bps |
| (1) Concept included in the efficiency ratio calculation | |||||
| *corresponds to total effective employees, net of temporary contract employees | |||||
| **do not include administrative offices | |||||
During 3Q21, personnel benefits and administrative expenses totaled $16.2 billion, growing 21.0% or $2.8 billion compared to 2Q21, and 18.7% or $2.5 million compared to 3Q20.
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Personnel benefits grew 6.2% QoQ, and 5.6% YoY. The quarterly increase is partially explained by an increase in variable compensation and social contributions.
As of 3Q21, administrative expenses increased 37.0% QoQ, and 32.4% YoY. The quarterly increment is explained by an 84.4% increase in the rent line item, a 66.9% increase in other administrative expenses, a 95.0% increase in outsourced administrative expenses, and a 151.9% increase in advertising, the latter due to the reclassification of fee expenses on digital sales into this line. Within rent and outsourced administrative expenses, costs of services outsourced through the Parent company can be found.
The accumulated efficiency ratio as of 3Q21 was 69.7%, improving versus the 70.1% and deteriorating versus the 62.3% reported in 2Q21 and 3Q20 respectively. The quarterly improvement is explained by a higher percentage increase in the denominator (income considering monetary position results) than the numerator (expenses), which has been positively affected by an improvement in net fee income and net interest income.
Excluding inflation adjustments considered in the income from the monetary position line item, the 3Q21 accumulated efficiency ratio would have been 49.7%, deteriorating compared to the 48.5% of 2Q21 and improving versus the 50.3% of 3Q20.
Other Operating Expenses
| Other Operating Expenses | BBVA ARG Consolidated | Chg (%) | |||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Other Operating Expenses | 5,864 | 6,079 | 4,127 | (3.5%) | 42.1% |
| Turnover tax | 3,898 | 3,930 | 2,381 | (0.8%) | 63.7% |
| Initial loss of loans below market rate | 379 | 469 | 164 | (19.2%) | 131.1% |
| Contribution to the Deposit Guarantee Fund (SEDESA) | 264 | 249 | 252 | 6.0% | 4.8% |
| Interest on liabilities from financial lease | 103 | 113 | 136 | (8.8%) | (24.3%) |
| Other allowances | 224 | 560 | 404 | (60.0%) | (44.6%) |
| Other operating expenses | 996 | 758 | 790 | 31.4% | 26.1% |
In 3Q21, other operating expenses totaled $5.9 billion, falling 3.5% or $215 million QoQ, and growing 42.1% or $1.7 billion YoY.
In spite of most operating expenses falling, the main factors that explain the quarterly decrease can be found in the other allowances line item, falling 60.0%.
Previously mentioned decreases in expenses are offset by the other operating expenses line item which grows 31.4%.
Income from Associates
This line reflects the results from non-consolidated associate companies. During 3Q21, a profit of $89 million has been reported, mainly due to the Bank’s participation in BBVA Consolidar Seguros S.A., Rombo Compañía Financiera S.A., Interbanking S.A. and Play Digital S.A. and Openpay Argentina S.A.
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Income Tax
Accumulated income tax during the first nine months of 2021 recorded a gain of $2.2 billion. Income tax expense as of 3Q21 was $1.5 billion, being the first quarter in 2021 to record a loss in this line item, given that previous quarters were affected by the reversal of provisions connected to the repayment of income tax inflation adjustments for 2016, 2017 and 2018 fiscal years.
Excluding the effect of declaratory judgments on 2021, the annual accumulated effective tax rate as of 3Q21 would have been 29%, versus an annual accumulated tax rate of 38% for the first nine months of 2020.
As of 2Q21, tax expenses show a positive result of $3.2 billion due to the reversal of the provision connected to the repayment of income tax inflation adjustments for 2017 and 2018 fiscal years, for a total of $4.3 billion (in nominal terms), recorded during the first quarter of 2018 (1Q18) and the second quarter of 2019 (2Q19) respectively. The reversal is a result of an assessment, funded on legal and tax advisors’ opinions, in which the Bank considers that probabilities of getting a final instance favorable court ruling are higher for those fiscal years.
Meanwhile, on May 26, 2021, the Bank filed a new action of declaratory judgment of unconstitutionality against the Administración Federal de Ingresos Públicos –Dirección General Impositiva (AFIP-DGI) expecting a favorable decision that declares the unconstitutionality of the section 194 of Income Tax Law (T.O. 2019) and/or the regulations that prevent the full implementation of the inflation adjustment for tax purposes mechanism, as it considers a confiscatory income tax effect for fiscal year 2020. Consequently, in the income tax line item, a positive adjustment of $784 million (in nominal terms) is recorded.
Subsequently, Law No 27,630 enacted on June 16, 2021, overruled the general reduction in applicable tax rates[3], and introduced a scale system for fiscal years as of January 1, 2021. Thus, the applicable scale for the Bank will be the highest with a 35% tax rate.
The accumulated benefit in the income tax line as of 3Q21 includes the positive result obtained in 1Q21 due to the reversal of a provision of $1.2 billion (in nominal terms) recorded during the second quarter of 2017 (2Q17) corresponding to 2016 fiscal year, which was funded on a favorable final sentence in court.
[3] Previously: 30% for fiscal years as of January 1, 2018 and 25% for fiscal years as of 2022.
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Balance sheet and activity
Loans and Other Financing
| Loans and other financing | BBVA ARG Consolidated | Chg (%) | |||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| To the public sector | 1 | - | 1 | N/A | - |
| To the financial sector | 3,637 | 2,914 | 4,860 | 24.8% | (25.2%) |
| Non-financial private sector and residents abroad | 339,887 | 349,551 | 394,362 | (2.8%) | (13.8%) |
| Non-financial private sector and residents abroad - AR$ | 310,991 | 303,670 | 349,625 | 2.4% | (11.0%) |
| Overdrafts | 21,185 | 13,159 | 30,119 | 61.0% | (29.7%) |
| Discounted instruments | 38,864 | 36,022 | 45,447 | 7.9% | (14.5%) |
| Mortgage loans | 21,637 | 22,408 | 24,224 | (3.4%) | (10.7%) |
| Pledge loans | 15,070 | 15,108 | 14,816 | (0.3%) | 1.7% |
| Consumer loans | 35,681 | 36,292 | 39,825 | (1.7%) | (10.4%) |
| Credit cards | 135,890 | 136,599 | 137,759 | (0.5%) | (1.4%) |
| Receivables from financial leases | 2,789 | 2,796 | 2,298 | (0.3%) | 21.4% |
| Other loans | 39,875 | 41,286 | 55,137 | (3.4%) | (27.7%) |
| Non-financial private sector and residents abroad - Foreign Currency | 28,896 | 45,881 | 44,737 | (37.0%) | (35.4%) |
| Overdrafts | 2 | 2 | 5 | - | (60.0%) |
| Discounted instruments | 2,998 | 3,152 | 3 | (4.9%) | n.m |
| Credit cards | 2,452 | 2,254 | 2,359 | 8.8% | 3.9% |
| Receivables from financial leases | 55 | 94 | 252 | (41.5%) | (78.2%) |
| Loans for the prefinancing and financing of exports | 16,100 | 26,861 | 25,911 | (40.1%) | (37.9%) |
| Other loans | 7,289 | 13,518 | 16,207 | (46.1%) | (55.0%) |
| % of total loans to Private sector in AR$ | 91.5% | 86.9% | 88.7% | 462 bps | 284 bps |
| % of total loans to Private sector in Foreign Currency | 8.5% | 13.1% | 11.3% | (462)bps | (284)bps |
| % of mortgage loans with UVA adjustments / Total mortgage loans (1) | 74.7% | 75.2% | 85.9% | (51)bps | (1,118)bps |
| % of pledge loans with UVA adjustments / Total pledge loans (1) | 8.1% | 9.6% | 15.7% | (152)bps | (767)bps |
| % of consumer loans with UVA adjustments / Total consumer loans (1) | 6.4% | 8.9% | 21.3% | (255)bps | (1,487)bps |
| % of loans with UVA adjustments / Total loans and other financing(1) | 2.5% | 2.9% | 4.3% | (37)bps | (178)bps |
| Total loans and other financing | 343,525 | 352,465 | 399,222 | (2.5%) | (14.0%) |
| Allowances | (16,208) | (17,048) | (16,641) | 4.9% | 2.6% |
| Total net loans and other financing | 327,318 | 335,417 | 382,581 | (2.4%) | (14.4%) |
| (1) Excludes effect of accrued interests adjustments. | |||||
Private sector loans as of 3Q21 totaled $339.9 billion, decreasing 2.8% or $9.7 billion QoQ, and 13.8% or $54.5 billion YoY.
Loans to the private sector in pesos increased 2.4% in 3Q21, and decreased 11.0% YoY. During the quarter, growth is especially driven by a 61.0% increase in overdrafts, mainly through corporate clients, and 7.9% in discounted instruments, mainly with SMEs clients.
Loans to the private sector denominated in foreign currency fell 37.0% QoQ and 35.4% YoY. Quarterly decrease is mainly explained by a 40.1% fall in prefinancing and financing of exports, and a 46.1% fall in other loans. These loans, measured in U.S. dollars, fell 38.9% QoQ and 50.2% YoY. The depreciation of the argentine peso versus the U.S. dollar was 3.0% QoQ and 22.8% YoY[4].
In 3Q21, total loans and other financing totaled $343.5 billion, decreasing 2.5% compared to 2Q21 and 14.0% compared to 3Q20.
[4] Taking into consideration wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500.
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| Loans and other financing | BBVA ARG Consolidated | Chg (%) | |||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Non-financial private sector and residents abroad - Retail | 210,730 | 212,661 | 218,983 | (0.9%) | (3.8%) |
| Mortgage loans | 21,637 | 22,408 | 24,224 | (3.4%) | (10.7%) |
| Pledge loans | 15,070 | 15,108 | 14,816 | (0.3%) | 1.7% |
| Consumer loans | 35,681 | 36,292 | 39,825 | (1.7%) | (10.4%) |
| Credit cards | 138,342 | 138,853 | 140,118 | (0.4%) | (1.3%) |
| Non-financial private sector and residents abroad - Commercial | 129,157 | 136,890 | 175,379 | (5.6%) | (26.4%) |
| Overdrafts | 21,187 | 13,161 | 30,124 | 61.0% | (29.7%) |
| Discounted instruments | 41,862 | 39,174 | 45,450 | 6.9% | (7.9%) |
| Receivables from financial leases | 2,844 | 2,890 | 2,550 | (1.6%) | 11.5% |
| Loans for the prefinancing and financing of exports | 16,100 | 26,861 | 25,911 | (40.1%) | (37.9%) |
| Other loans | 47,164 | 54,804 | 71,344 | (13.9%) | (33.9%) |
| % of total loans to Retail sector | 62.0% | 60.8% | 55.5% | 116 bps | 647 bps |
| % of total loans to Commercial sector | 38.0% | 39.2% | 44.5% | (116)bps | (647)bps |
In real terms, retail loans (mortgage, pledge, consumer and credit cards) have fallen 0.9% QoQ and 3.8% YoY. During the quarter, the greatest decline is seen in mortgage loans with a 3.4% decrease, followed by a 1.7% fall in consumer loans. In nominal terms, the latter increased 7.4% QoQ due to greater activity, although in real terms this does not compensate for the acceleration in the inflation rate during the quarter.
Commercial loans (overdrafts, discounted instruments, receivables from financial leases, loans for the prefinancing and financing of exports, and other loans) contracted 5.6% QoQ and 26.4% YoY both in real terms. Quarterly decline is explained by a 40.1% fall in prefinancing and financing of exports, followed by a 13.9% fall in other loans. This was partially offset by a 61.0% growth in overdrafts, especially in the corporate segment.
Decline in both retail and commercial portfolios, and in the total loan portfolio, are mainly impacted by the effect of inflation during the third quarter of 2021, which reached 9.3%. In nominal terms, the retail, commercial and total loan portfolio all increased 8.3%, 3.1% and 6.5% respectively during the quarter, yet unable to offset the impact of inflation during the same period.
| Loans and other financing- Non restated figures | BBVA ARG Consolidated | Chg (%) | |||
| In millions of AR$ | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Non-financial private sector and residents abroad - Retail | 210,730 | 194,596 | 143,622 | 8.3% | 46.7% |
| Non-financial private sector and residents abroad - Commercial | 129,157 | 125,265 | 115,025 | 3.1% | 12.3% |
| Total loans and other financing (1) | 343,525 | 322,527 | 261,834 | 6.5% | 31.2% |
| (1) Does not include allowances | |||||
As of 3Q21, the total loans and other financing over deposits ratio was 54.5%, above the 52.9% recorded in 2Q21 and below the 65.5% in 3Q20.
| Market share - Private sector Loans | BBVA ARG Consolidated | Chg (%) | |||
| In % | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Private sector loans - Bank | 7.23% | 7.35% | 7.46% | (12)bps | (23)bps |
| Private sector loans - Consolidated* | 8.08% | 8.21% | 8.27% | (12)bps | (19)bps |
| Based on daily BCRA information. Capital balance as of the last day of each quarter. | |||||
| * Consolidates PSA, VWFS & Rombo | |||||
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Asset Quality
| Asset Quality | BBVA ARG Consolidated | Chg (%) | |||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Commercial non-performing portfolio (1) | 2,416 | 2,688 | 718 | (10.1%) | 236.6% |
| Total commercial portfolio | 106,726 | 119,758 | 137,082 | (10.9%) | (22.1%) |
| Commercial non-performing portfolio / Total commercial portfolio | 2.26% | 2.24% | 0.52% | 2 bps | 174 bps |
| Retail non-performing portfolio (1) | 6,501 | 6,385 | 3,966 | 1.8% | 63.9% |
| Total retail portfolio | 243,901 | 244,174 | 265,216 | (0.1%) | (8.0%) |
| Retail non-performing portfolio / Total retail portfolio | 2.67% | 2.62% | 1.50% | 5 bps | 117 bps |
| Total non-performing portfolio (1) | 8,917 | 9,073 | 4,684 | (1.7%) | 90.4% |
| Total portfolio | 350,627 | 363,932 | 402,298 | (3.7%) | (12.8%) |
| Total non-performing portfolio / Total portfolio | 2.54% | 2.49% | 1.16% | 5 bps | 138 bps |
| Allowances | 16,208 | 17,048 | 16,641 | (4.9%) | (2.6%) |
| Allowances /Total non-performing portfolio | 181.76% | 187.89% | 355.26% | (613)bps | (17,350)bps |
| Quarterly change in Write-offs | 1,158 | 767 | 909 | 51.0% | 27.4% |
| Write offs / Total portfolio | 0.33% | 0.21% | 0.23% | 12 bps | 10 bps |
| Cost of Risk (CoR) | 2.80% | 2.61% | 1.37% | 19 bps | 142 bps |
| (1) Non-performing loans include: all loans to borrowers classified as "Deficient Servicing (Stage 3)", "High Insolvency Risk (Stage 4)", "Irrecoverable" and/or "Irrecoverable for Technical Decision" (Stage 5) according to BCRA debtor classification system | |||||
In 3Q21, asset quality ratio or NPL (total non-performing portfolio / total portfolio) was 2.54%, compared to the 2.49% recorded in 2Q21. The increase is mainly explained by the subtle increase in retail non-performing loans, given the homogenization in non-performing loan periods, in addition to a reduction both in retail and commercial portfolios.
The coverage ratio (allowances / total non-performing portfolio) was 181.76% in 3Q21, versus the 187.89% recorded in 2Q21. The change in this ratio reflects a greater reduction in allowances over the contraction in the total non-performing loan portfolio, mainly due to the update in macroeconomic projections used in impairment loss models, enhanced by the effect of inflation adjustments from previous quarters.
Cost of risk (loan loss allowances / average total loans) reached 2.80% as of 3Q21, higher than 2Q21’s 2.61%. This is mainly explained by the greater reduction in the loan portfolio, in contrast to the increase in loan loss allowances, in real terms.
The increase in write-offs is explained by the homogenization of non-performing loan deferrals linked to measures taken by the central bank during the pandemic, mainly related to credit cards.
| Analysis for the allowance of loan losses | BBVA ARG | ||||||
| Balance at 12/31/2020 | Stage 1 | Stage 2 | Stage 3 | Monetary result generated by allowances | Balance at 09/30/2021 | ||
| In millions of AR$ | |||||||
| Other financial assets | 362 | (13) | - | 44 | (100) | 294 | |
| Loans and other financing | 17,533 | (33) | 6 | 3,583 | (5,294) | 15,795 | |
| Other debt securities | - | 16 | - | - | (1) | 15 | |
| Eventual commitments | 1,869 | (7) | 76 | 5 | (538) | 1,405 | |
| Total allowances | 19,764 | (36) | 82 | 3,632 | (5,933) | 17,509 | |
| 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 3Q21 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 temporarily excluded from the scope of such standard.
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| Analysis for the allowance of loan losses | Group "C" Subsidiary Companies | ||||||
| Balance at 12/31/2020 | Stage 1 | Stage 2 | Stage 3 | Monetary result generated by allowances | Balance at 09/30/2021 | ||
| In millions of AR$ | |||||||
| Loans and other financing | 445 | 103 | (25) | (14) | (96) | 413 | |
| Non-financial private sector and residents abroad | 445 | 103 | (25) | (14) | (96) | 413 | |
| Pledge loans | 431 | 97 | (24) | (14) | (91) | 400 | |
| Financial leases | 2 | 1 | (1) | - | - | 1 | |
| Other | 12 | 5 | - | - | (5) | 12 | |
| Total allowances | 445 | 103 | (25) | (14) | (96) | 413 | |
| Note: to be consistent with Financial Statements, it must be recorded from the beginning of the year instead of the quarter | |||||||
The financial statements of consolidated subsidiaries PSA and VWFS were prepared considering the financial reporting framework set forth by the BCRA for Group "C" financial institutions, without considering the model established in paragraph 5.5. “Impairment” of IFRS 9 for fiscal years commencing on and after January 1, 2022.
Public Sector Exposure
| Net Public Debt Exposure | BBVA ARG Consolidated | Chg (%) | |||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Treasury and Government securities | 62,954 | 61,613 | 35,041 | 2.2% | 79.7% |
| Treasury and National Government | 62,953 | 61,613 | 35,040 | 2.2% | 79.7% |
| National Treasury Public Debt in AR$ | 62,953 | 61,613 | 35,036 | 2.2% | 79.7% |
| National Treasury Public Debt in dollars | - | - | 4 | N/A | (100.0%) |
| Loans to the Public Sector | 1 | 1 | N/A | - | |
| AR$ Subtotal | 62,954 | 61,613 | 35,037 | 2.2% | 79.7% |
| USD Subtotal* | - | - | 4 | N/A | (100.0%) |
| Total Public Debt Exposure | 62,954 | 61,613 | 35,041 | 2.2% | 79.7% |
| B.C.R.A. Exposure | 228,580 | 232,444 | 156,078 | (1.7%) | 46.5% |
| Instruments | 119,821 | 117,408 | 129,571 | 2.1% | (7.5%) |
| LELIQs | 119,821 | 117,408 | 129,571 | 2.1% | (7.5%) |
| Repo | 108,760 | 115,036 | 26,507 | (5.5%) | 310.3% |
| B.C.R.A. - AR$ | 108,760 | 115,036 | 26,507 | (5.5%) | 310.3% |
| % Public sector exposure (Excl. B.C.R.A.) / Total assets | 6.9% | 6.5% | 3.9% | 36 bps | 297 bps |
| *Includes USD-linked Treasury public debt in AR$ | |||||
| This table does not include deposits at the Central Bank used to comply with reserve requirements. | |||||
3Q21 public sector exposure (excluding BCRA) totaled $63.0 billion, growing 2.2% or $1.3 billion QoQ, and 79.7% or $27.9 billion YoY. The quarterly increase is explained by a greater position in CER-linked treasury bills (LECER) and 2022 National Treasury Bonds at fixed rate (Bonte 22, used for reserve requirement integration).
Short-term liquidity is mostly allocated in BCRA instruments, which fell 1.7% QoQ and increased 46.5% YoY in real terms. The quarterly decrease is explained by a reduction in the final position in REPOs with the BCRA.
Exposure to the public sector (excluding BCRA) represents 6.9% of total assets, above the 6.5% in 2Q21 and the 3.9% in 3Q20.
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Deposits
| Total Deposits | BBVA ARG Consolidated | Chg (%) | |||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Total deposits | 630,776 | 665,661 | 609,285 | (5.2%) | 3.5% |
| Non-financial Public Sector | 10,205 | 7,782 | 9,039 | 31.1% | 12.9% |
| Financial Sector | 205 | 477 | 838 | (57.0%) | (75.5%) |
| Non-financial private sector and residents abroad | 620,366 | 657,402 | 599,408 | (5.6%) | 3.5% |
| Non-financial private sector and residents abroad - AR$ | 454,989 | 483,123 | 426,018 | (5.8%) | 6.8% |
| Checking accounts | 138,363 | 151,410 | 128,534 | (8.6%) | 7.6% |
| Savings accounts | 106,652 | 125,365 | 110,091 | (14.9%) | (3.1%) |
| Time deposits | 154,550 | 158,020 | 154,823 | (2.2%) | (0.2%) |
| Investment accounts | 51,428 | 44,350 | 27,618 | 16.0% | 86.2% |
| Other | 3,996 | 3,978 | 4,952 | 0.5% | (19.3%) |
| Non-financial private sector and res. abroad - Foreign Currency | 165,377 | 174,279 | 173,390 | (5.1%) | (4.6%) |
| Checking accounts | 59 | 40 | 35 | 48.9% | 66.2% |
| Savings accounts | 145,950 | 153,281 | 145,829 | (4.8%) | 0.1% |
| Time deposits | 17,360 | 18,685 | 23,804 | (7.1%) | (27.1%) |
| Other | 2,007 | 2,273 | 3,722 | (11.7%) | (46.1%) |
| % of total portfolio in the private sector in AR$ | 73.3% | 73.5% | 71.1% | (15)bps | 227 bps |
| % of total portfolio in the private sector in Foregin Currency | 26.7% | 26.5% | 28.9% | 15 bps | (227)bps |
| % of time deposits with UVA adjustments / Total AR$ Deposits | 4.0% | 4.4% | 1.0% | (41)bps | 301 bps |
| % of sight deposits over total deposits | 64.0% | 66.4% | 65.6% | (238)bps | (159)bps |
| % of time deposits over total deposits | 36.0% | 33.6% | 34.4% | 238 bps | 159 bps |
As of 3Q21, total deposits reached $630.8 billion, declining 5.2% or $34.9 billion QoQ, and increasing 3.5% or $21.5 billion YoY.
Private non-financial sector deposits in 3Q21 totaled $620.4 billion, decreasing 5.6% QoQ, and increasing 3.5% YoY.
Private non-financial sector deposits in pesos totaled $455.0 billion, falling 5.8% compared to 2Q21, and increasing 6.8% compared to 3Q20. The quarterly decrease is mainly affected by the decline in sight deposits, especially checking accounts (interest bearing), and savings accounts. This was partially offset by a 16.0% increase in investment accounts.
Private non-financial sector deposits in foreign currency expressed in pesos fell 5.1% QoQ and 4.6% YoY. Measured in U.S. dollars, these deposits fell 8.0% QoQ and 26.4% YoY.
| Private Deposits | BBVA ARG Consolidated | Chg (%) | |||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Non-financial private sector and residents abroad | 620,366 | 657,402 | 599,408 | (5.6%) | 3.5% |
| Sight deposits | 397,028 | 436,347 | 393,163 | (9.0%) | 1.0% |
| Checking accounts | 138,422 | 151,450 | 128,570 | (8.6%) | 7.7% |
| Savings accounts | 252,603 | 278,646 | 255,919 | (9.3%) | (1.3%) |
| Other | 6,003 | 6,251 | 8,674 | (4.0%) | (30.8%) |
| Time deposits | 223,338 | 221,055 | 206,244 | 1.0% | 8.3% |
| Time deposits | 171,910 | 176,705 | 178,627 | (2.7%) | (3.8%) |
| Investment accounts | 51,428 | 44,350 | 27,618 | 16.0% | 86.2% |
| % of sight deposits over total deposits | 64.6% | 66.8% | 66.1% | (220)bps | (156)bps |
| % of time deposits over total deposits | 35.4% | 33.2% | 33.9% | 220 bps | 156 bps |
| Private Deposits - Non restated figures | BBVA ARG Consolidated | Chg (%) | |||
| In millions of AR$ | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Sight deposits | 397,028 | 399,282 | 257,861 | (0.6%) | 54.0% |
| Time deposits | 223,338 | 202,278 | 135,268 | 10.4% | 65.1% |
| Total deposits | 630,776 | 609,118 | 399,607 | 3.6% | 57.8% |
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As of 3Q21, the Bank’s transactional deposits (checking accounts and savings accounts) represented 63.0% of total non-financial private deposits, totaling $391.0 billion, versus 65.4% in 2Q21.
| Market Share - Private sector Deposits | BBVA ARG Consolidated | Chg (%) | |||
| In % | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Private sector Deposits - Consolidated* | 7.02% | 7.41% | 6.49% | (39)bps | 53 bps |
| Based on daily BCRA information. Capital balance as of the last day of each quarter. | |||||
| * Consolidates PSA, VWFS & Rombo | |||||
Other Sources of Funds
| Other sources of funds | BBVA ARG Consolidated | Chg (%) | |||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Other sources of funds | 156,837 | 153,927 | 167,469 | 1.9% | (6.3%) |
| Central Bank | 32 | 33 | 45 | (3.2%) | (30.1%) |
| Banks and international organizations | 3,030 | 3,199 | - | (5.3%) | N/A |
| Financing received from local financial institutions | 7,803 | 7,386 | 5,073 | 5.7% | 53.8% |
| Corporate bonds | 455 | 952 | 6,253 | (52.2%) | (92.7%) |
| Equity | 145,517 | 142,358 | 156,098 | 2.2% | (6.8%) |
In 3Q21, other sources of funds totaled $156.8 billion, increasing 1.9% or $2.9 billion QoQ, and declining 6.3% or $10.6 billion YoY.
Quarterly increase is mostly explained by the 2.2% growth in equity. This is explained by the increase in net income.
Liquid Assets
| Total Liquid Assets | BBVA ARG Consolidated | Chg (%) | |||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Total liquid assets | 485,311 | 504,221 | 402,393 | (3.8%) | 20.6% |
| Cash and deposits in banks | 197,263 | 216,740 | 203,059 | (9.0%) | (2.9%) |
| Debt securities at fair value through profit or loss | 6,547 | 4,938 | 9,029 | 32.6% | (27.5%) |
| Government securities | 2,165 | 4,938 | 253 | (56.1%) | n.m |
| Liquidity bills of B. C. R. A. | 4,382 | - | 8,776 | N/A | (50.1%) |
| Net REPO transactions | 108,760 | 115,036 | 28,968 | (5.5%) | 275.5% |
| Other debt securities | 172,741 | 167,508 | 161,338 | 3.1% | 7.1% |
| Government securities | 57,302 | 50,100 | 28,515 | 14.4% | 101.0% |
| Liquidity bills of B. C. R. A. | 115,439 | 117,408 | 132,823 | (1.7%) | (13.1%) |
| Liquid assets / Total Deposits | 76.9% | 75.7% | 66.0% | 119 bps | 1,090 bps |
In 3Q21, liquid assets were $485.3 billion, falling 3.8% or $18.9 billion compared to 2Q21, and increasing 20.6% or $82.9 billion compared to 3Q20, mainly due to decline in cash and deposits in banks, as a consequence of regulations related to the allowance of damaged banknotes and bank’s treasury as reserve requirements, applicable since 2Q21.
In 3Q21, the liquidity ratio (liquid assets / total deposits) reached 76.9%. Liquidity ratio in local and foreign currency reached 72.2% and 91.5% respectively.
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Solvency
| Minimum capital requirement | BBVA ARG Consolidated | Chg (%) | |||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Minimum capital requirement | 47,163 | 46,648 | 51,151 | 1.1% | (7.8%) |
| Credit risk | 35,584 | 34,577 | 37,827 | 2.9% | (5.9%) |
| Market risk | 144 | 623 | 424 | (76.9%) | (66.0%) |
| Operational risk | 11,435 | 11,448 | 12,901 | (0.1%) | (11.4%) |
| Integrated Capital - RPC (1)* | 135,666 | 132,715 | 144,617 | 2.2% | (6.2%) |
| Ordinary Capital Level 1 ( COn1) | 149,219 | 147,665 | 163,554 | 1.1% | (8.8%) |
| Deductible items COn1 | (16,980) | (18,481) | (22,843) | 8.1% | 25.7% |
| Additional Capital Level 2 (COn2) | 3,427 | 3,531 | 3,906 | (2.9%) | (12.3%) |
| Excess Capital | |||||
| Integration excess | 88,503 | 86,067 | 93,466 | 2.8% | (5.3%) |
| Excess as % of minimum capital requirement | 187.7% | 184.5% | 182.73% | 315 pbs | 493 pbs |
| Risk-weighted assets (RWA, according to B.C.R.A. regulation) (2) | 576,584 | 570,525 | 625,617 | 1.1% | (7.8%) |
| Regulatory Capital Ratio (1)/(2) | 23.5% | 23.3% | 23.1% | 27 bps | 41 bps |
| TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) | 22.9% | 22.6% | 22.5% | 29 bps | 44 bps |
| * RPC includes 100% of quarterly results | |||||
BBVA Argentina continues to show strong solvency indicators on 3Q21. Capital ratio reached 23.5%. Tier 1 ratio was 22.9% and capital excess over regulatory requirement was $88.5 billion or 187.7%.
BBVA Argentina Asset Management S.A.
| Mutual Funds Assets | BBVA Asset Management | Chg (%) | |||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| FBA Renta Pesos | 174,280 | 151,314 | 146,130 | 15.2% | 19.3% |
| FBA Renta Fija Plus | 11,220 | 11,275 | 92 | (0.5%) | n.m |
| FBA Ahorro Pesos | 1,924 | 1,668 | 1,248 | 15.3% | 54.2% |
| FBA Horizonte | 365 | 408 | 1,111 | (10.5%) | (67.1%) |
| FBA Calificado | 787 | 646 | 756 | 21.8% | 4.1% |
| FBA Acciones Argentina | 689 | 533 | 693 | 29.3% | (0.6%) |
| FBA Acciones Latinoamericanas | 488 | 520 | 565 | (6.2%) | (13.6%) |
| FBA Bonos Argentina | 842 | 408 | 468 | 106.4% | 79.9% |
| FBA Bonos Globales | 124 | 133 | 305 | (6.8%) | (59.3%) |
| FBA Renta Mixta | 263 | 169 | 59 | 55.6% | 345.8% |
| FBA Gestión I | 34 | 35 | 39 | (2.9%) | (12.8%) |
| FBA Horizonte Plus | 24 | 28 | 55 | (14.3%) | (56.4%) |
| FBA Retorno Total I | 21 | 23 | 46 | (8.7%) | (54.3%) |
| FBA Renta Pública I | 6 | 2 | 2 | 200.0% | 200.0% |
| FBA Renta Fija Local | �� 2 | 2 | 2 | - | - |
| FBA Renta Fija Dólar Plus | - | - | 691 | N/A | (100.0%) |
| FBA Renta Fija Dólar | - | - | 530 | N/A | (100.0%) |
| Total assets | 191,069 | 167,164 | 152,792 | 14.3% | 25.1% |
| Market Share - Mutual funds | BBVA Asset Management | Chg (%) | |||
| In % | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Mutual funds | 6.34% | 6.19% | 5.76% | 15 bps | 59 bps |
| Source: Cámara Argentina de Fondos Comunes de Inversión | |||||
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Other events
Main Relevant Events
| · | As of October 1, 2021, in the framework of the Divestment Commitment made by Prisma Medios de Pago S.A. (“Prisma”) and its Class B Shareholders to the Comisión Nacional de Defensa de la Competencia (Antitrust Authorities), the Bank, together with other Prisma Class B Shareholders, have sent the notice to AI ZENITH (Netherlands) B.V. (Advent International Global Private Equityʼs Affiliate) corresponding to the exercise of the sale option and have begun the proceeding for the sale of 49% of the Prisma capital stock and votes. The price to be paid for said shares shall be fixed in the next weeks in accordance with a calculation procedure agreed between the parties which will be informed timely. Likewise, it is informed that the shares owned by the Bank represent 5.4496% of the Prisma capital stock. |
| · | As of November 3, 2021, the Shareholders’ Meeting approved the distribution of cash dividends in the amount of $ 6.5 billion, equal to $ 10.608606 per share, and delegated on the Board of Directors the power to determine the date of payment of such dividends. The distribution of the dividends is subject to the Central Bank’s prior authorization, which has not been granted yet. According to Communication “A” 7312, the distribution of financial institutions’ results is suspended until December 31, 2021. |
| · | As of November 19, 2021, the Bank has been notified of a class action filed by Asociación de Defensa del Asegurado, Consumidores y Usuarios Asociación Civil, (ADACU). The Association, alleging the representation of consumers, demands the payment of compensation for material damage and punitive damage to all customers who owned a VISA card issued by any of the co-defendant banks, resulting from alleged unlawful collusion between Prismaʼs shareholders, in the setting of prices in the discount and exchange rate for the use of the aforementioned credit card. It is important to remark that this action is informed even though it is materially impossible to determine to date, whether the claim has a significant economic importance, since such claim is brought for an indeterminate amount, materially impossible to be determined with certainty today. |
Digital Transformation
Digitalization continued to accelerate during 3Q21. Active digital client total more than 2.0 million with a 73.6% penetration over total active clients (2.7 million), versus a penetration of 71.0% in 3Q20. Active mobile clients reach 1.7 million, representing a 62.7% penetration in 3Q21, versus a penetration of 58.6% in 3Q20. Digital and mobile transactions[5] increased 10.0% in 3Q21 YoY.
On 3Q21, retail digital sales measured in units reached 78.9% of total sales (vs. 80.8% in 3Q20) and represent 54.5% of the Banks total sales measured in monetary value (vs. 59.2% in 3Q20).
[5] Includes online and mobile banking, Net Cash online & mobile.
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SMEs Productive investment financing credit lines – September 2021
As of September 30, 2021, total loans granted by the Bank regarding the 2021 quota amounted to $41.7 billion and the average of daily balances of current financing between April 21, 2021 and September 30, 2021, totaled $30.1 billion, having complied with the $24.4 billion quota demanded by the BCRA pursuant to Communication “B” 12164. Within this regulation, the total amount to be granted by the bank on the 2021/2022 quota amounts to $32.4 billion, pursuant to Communication “B” 12238.
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Main Regulatory Changes
Interbanking banknote compensation. Postponement and requirement update. (Communication “A” 7371, 09/24/2021). The BCRA increased to 5% the maximum holding of damaged banknotes for financial institutions that comply with the Interbanking Banknote Compensation regime. Also, it postpones the dispositions related to the holding of banknotes of “Proper handling” and “Damaged”, as of October 1, 2021 until March 21, 2022.
SMEs productive investment financing credit lines. (Communication “A” 7369, 09/24/2021). As of October 1, 2021, the BCRA applies the following changes over regulations regarding SMEs productive investment financing credit lines: (i) It includes the 2021/2022 quota, with the same conditions applying to 2021 quota, (ii) it remarks that when financings are aimed for “Financing of investment projects”, financial institutions can record those used for the acquisition of commercial vehicles and aircrafts only when these are of local origin and are directly and exclusively affected to the activity of the creditor, and in 4.2. “Working capital and discounted instruments”, as long as the funds are allocated to activities within the hotel, gastronomy and other entertainment services, financial entities will be able to record those with a grace period of 6 months., (iii) it admits financial entities to record an application defect from financings granted up to September 30, 2021, and disbursed on October 2021. These financings will not be able to be recorded in that period.
SMEs productive investment financing credit lines. Update. (Communication “A” 7373, 09/30/2021). The BCRA includes on SME productive investment financing credit line regulation, as eligible financings, those granted to SMEs clients with agricultural activity subscribed on the “Sistema de información Simplificado Agrícola” (SISA) as “Producer”, as long as established requirements are met.
Reserve requirements. Days to maturity on securities accepted. (Communication “A” 7383, 10/28/2021). As of November 1, 2021, the BCRA states that the remaining days to maturity for sovereign securities in pesos purchased through primary auction as of that date, as per reserve requirement regulation, not be less than 120 calendar days,
Savings accounts for foreign resident tourists. (Communication “A” 7384, 10/28/2021). The BCRA stated that financial institutions will be able to open “Savings accounts for tourists”, in local and foreign currency, for individuals residing abroad, and which the financial institution must close once the holder declares his stay is due, previously transferring any left balances to the holder’s account in his country of origin. Financial institutions must save record of the account number and copy of account transactions.
Net global foreign currency position. (Communication “A” 7395, 05/11/2021). As of November 5, 2021, the BCRA states a special net positive cash position. This cannot be above the minimum between the net positive cash position as of November 4, 2021 and the daily average recorded for October 2021, excluding securities issued by residents that could be considered.
Customer service (Communication “A” 7398, 11/11/2021). As of November 15, 2021, the BCRA overrules the provisions regarding financial services in the framework of the sanitary emergency disposed by Decree N° 260/2020 Coronavirus (COVID-19).
Financial institutions can provide in person customer service to the general public without need of appointments. As of November 15, 2021 and until December 31, 2021, in the case they decide to order service through appointments, financial institutions must clearly explicit such circumstance on their websites and appointment dates cannot exceed three workdays since its request. Additionally, they must comply with strict sanitary conditions and recommendations proposed by national and local authorities to preserve clients’ and employees’ health.
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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).
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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.
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.
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Balance Sheet
| Balance Sheet | BBVA ARG Consolidated | Chg (%) | |||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Assets | |||||
| Cash and deposits in banks | 197,263 | 216,740 | 203,059 | (9.0%) | (2.9%) |
| Cash | 49,136 | 64,715 | 60,009 | (24.1%) | (18.1%) |
| Financial institutions and correspondents | 148,127 | 152,025 | 143,050 | (2.6%) | 3.5% |
| BCRA | 144,991 | 147,750 | 136,643 | (1.9%) | 6.1% |
| Other local and foreign financial institutions | 3,136 | 4,275 | 6,407 | (26.6%) | (51.1%) |
| Debt securities at fair value through profit or loss | 6,550 | 4,942 | 9,206 | 32.5% | (28.9%) |
| Derivatives | 3,245 | 2,881 | 2,152 | 12.6% | 50.8% |
| Repo transactions | 108,760 | 115,036 | 28,968 | (5.5%) | 275.4% |
| Other financial assets | 19,574 | 16,665 | 18,948 | 17.5% | 3.3% |
| Loans and other financing | 327,318 | 335,417 | 382,581 | (2.4%) | (14.4%) |
| Non-financial public sector | 1 | - | 1 | N/A | - |
| B.C.R.A | - | - | - | N/A | N/A |
| Other financial institutions | 3,440 | 2,587 | 4,495 | 33.0% | (23.5%) |
| Non-financial private sector and residents abroad | 323,877 | 332,830 | 378,085 | (2.7%) | (14.3%) |
| Other debt securities | 173,306 | 168,043 | 161,338 | 3.1% | 7.4% |
| Financial assets pledged as collateral | 16,011 | 18,227 | 22,167 | (12.2%) | (27.8%) |
| Current income tax assets | 2,078 | 5,280 | 8 | (60.6%) | n.m |
| Investments in equity instruments | 2,145 | 2,325 | 2,690 | (7.7%) | (20.3%) |
| Investments in subsidiaries and associates | 1,954 | 2,242 | 2,046 | (12.8%) | (4.5%) |
| Property and equipment | 44,566 | 45,053 | 45,959 | (1.1%) | (3.0%) |
| Intangible assets | 2,858 | 2,594 | 1,975 | 10.2% | 44.7% |
| Deferred income tax assets | 667 | 711 | 5,207 | (6.2%) | (87.2%) |
| Other non-financial assets | 7,601 | 8,164 | 9,215 | (6.9%) | (17.5%) |
| Non-current assets held for sale | 309 | 309 | 309 | - | - |
| Total Assets | 914,205 | 944,629 | 895,828 | (3.2%) | 2.1% |
| Liabilities | |||||
| Deposits | 630,776 | 665,661 | 609,285 | (5.2%) | 3.5% |
| Non-financial public sector | 10,205 | 7,782 | 9,039 | 31.1% | 12.9% |
| Financial sector | 205 | 477 | 838 | (57.0%) | (75.5%) |
| Non-financial private sector and residents abroad | 620,366 | 657,402 | 599,408 | (5.6%) | 3.5% |
| Liabilities at fair value through profit or loss | 47 | - | - | N/A | N/A |
| Derivatives | 352 | 155 | 55 | 127.1% | n.m |
| Other financial liabilities | 54,513 | 51,245 | 58,899 | 6.4% | (7.4%) |
| Financing received from the B.C.R.A. and other financial institutions | 10,865 | 10,617 | 5,118 | 2.3% | 112.3% |
| Corporate bonds issued | 455 | 952 | 6,253 | (52.2%) | (92.7%) |
| Current income tax liabilities | 195 | 89 | 4,388 | 119.1% | (95.6%) |
| Provisions | 5,274 | 6,925 | 15,980 | (23.8%) | (67.0%) |
| Deferred income tax liabilities | 4,926 | 3,749 | 28 | 31.4% | n.m |
| Other non-financial liabilities | 58,398 | 59,999 | 36,653 | (2.7%) | 59.3% |
| Total Liabilities | 765,801 | 799,392 | 736,659 | (4.2%) | 4.0% |
| Equity | N/A | N/A | |||
| Share Capital | 613 | 613 | 613 | - | - |
| Non-capitalized contributions | 36,139 | 36,139 | 36,139 | - | - |
| Capital adjustments | 25,756 | 25,756 | 25,756 | - | - |
| Reserves | 69,775 | 69,775 | 135,332 | - | (48.4%) |
| Retained earnings | (1,373) | (1,373) | (56,805) | - | 97.6% |
| Other accumulated comprehensive income | (310) | (90) | 473 | (245.3%) | (165.5%) |
| Income for the period | 14,917 | 11,538 | 14,590 | 29.3% | 2.2% |
| Equity attributable to owners of the Parent | 145,517 | 142,358 | 156,098 | 2.2% | (6.8%) |
| Equity attributable to non-controlling interests | 2,887 | 2,879 | 3,071 | 0.3% | (6.0%) |
| Total Equity | 148,404 | 145,237 | 159,169 | 2.2% | (6.8%) |
| Total Liabilities and Equity | 914,205 | 944,629 | 895,828 | (3.2%) | 2.1% |
| 26 |
| |
Balance Sheet – 5 Quarters
| Balance Sheet | BBVA ARG Consolidated | ||||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 1Q21 | 4Q20 | 3Q20 |
| Assets | |||||
| Cash and deposits in banks | 197,263 | 216,740 | 237,332 | 208,324 | 203,059 |
| Cash | 49,136 | 64,715 | 79,950 | 85,233 | 60,009 |
| Financial institutions and correspondents | 148,127 | 152,025 | 157,382 | 123,091 | 143,050 |
| B.C.R.A | 144,991 | 147,750 | 152,406 | 118,036 | 136,643 |
| Other local and foreign financial institutions | 3,136 | 4,275 | 4,976 | 5,055 | 6,407 |
| Debt securities at fair value through profit or loss | 6,550 | 4,942 | 5,907 | 1,291 | 9,206 |
| Derivatives | 3,245 | 2,881 | 3,002 | 5,311 | 2,152 |
| Repo transactions | 108,760 | 115,036 | 36,945 | 67,367 | 28,968 |
| Other financial assets | 19,574 | 16,665 | 16,755 | 13,757 | 18,948 |
| Loans and other financing | 327,318 | 335,417 | 345,147 | 382,824 | 382,581 |
| Non-financial public sector | 1 | - | 1 | 1 | 1 |
| B.C.R.A | - | - | - | 8 | - |
| Other financial institutions | 3,440 | 2,587 | 2,409 | 2,404 | 4,495 |
| Non-financial private sector and residents abroad | 323,877 | 332,830 | 342,737 | 380,411 | 378,085 |
| Other debt securities | 173,306 | 168,043 | 163,774 | 165,177 | 161,338 |
| Financial assets pledged as collateral | 16,011 | 18,227 | 20,182 | 24,533 | 22,167 |
| Current income tax assets | 2,078 | 5,280 | 1,650 | 1 | 8 |
| Investments in equity instruments | 2,145 | 2,325 | 2,762 | 3,495 | 2,690 |
| Investments in subsidiaries and associates | 1,954 | 2,242 | 1,921 | 1,975 | 2,046 |
| Property and equipment | 44,566 | 45,053 | 45,640 | 46,248 | 45,959 |
| Intangible assets | 2,858 | 2,594 | 2,313 | 2,128 | 1,975 |
| Deferred income tax assets | 667 | 711 | 5,075 | 7,263 | 5,207 |
| Other non-financial assets | 7,601 | 8,164 | 10,913 | 12,223 | 9,215 |
| Non-current assets held for sale | 309 | 309 | 309 | 309 | 309 |
| Total Assets | 914,205 | 944,629 | 899,627 | 942,226 | 895,828 |
| Liabilities | |||||
| Deposits | 630,776 | 665,661 | 615,742 | 654,965 | 609,285 |
| Non-financial public sector | 10,205 | 7,782 | 7,980 | 7,709 | 9,039 |
| Financial sector | 205 | 477 | 217 | 1,180 | 838 |
| Non-financial private sector and residents abroad | 620,366 | 657,402 | 607,545 | 646,076 | 599,408 |
| Liabilities at fair value through profit or loss | 47 | - | - | - | - |
| Derivatives | 352 | 155 | 484 | 258 | 55 |
| Other financial liabilities | 54,513 | 51,245 | 54,458 | 53,724 | 58,899 |
| Financing received from the B.C.R.A. and other financial institutions | 10,865 | 10,617 | 11,850 | 13,184 | 5,118 |
| Corporate bonds issued | 455 | 952 | 1,239 | 1,601 | 6,253 |
| Current income tax liabilities | 195 | 89 | 1,926 | 5,098 | 4,388 |
| Provisions | 5,274 | 6,925 | 12,690 | 15,715 | 15,980 |
| Deferred income tax liabilities | 4,926 | �� 3,749 | 89 | 54 | 28 |
| Other non-financial liabilities | 58,398 | 59,999 | 55,760 | 55,527 | 36,653 |
| Total Liabilities | 765,801 | 799,392 | 754,238 | 800,126 | 736,659 |
| Equity | |||||
| Share Capital | 613 | 613 | 613 | 613 | 613 |
| Non-capitalized contributions | 36,139 | 36,139 | 36,139 | 36,139 | 36,139 |
| Capital adjustments | 25,756 | 25,756 | 25,756 | 25,756 | 25,756 |
| Reserves | 69,775 | 69,775 | 118,239 | 118,238 | 135,332 |
| Retained earnings | (1,373) | (1,373) | (41,681) | (56,805) | (56,805) |
| Other accumulated comprehensive income | (310) | (90) | (203) | 108 | 473 |
| Income for the period | 14,917 | 11,538 | 3,648 | 15,123 | 14,590 |
| Equity attributable to owners of the Parent | 145,517 | 142,358 | 142,511 | 139,172 | 156,098 |
| Equity attributable to non-controlling interests | 2,887 | 2,879 | 2,878 | 2,928 | 3,071 |
| Total Equity | 148,404 | 145,237 | 145,389 | 142,100 | 159,169 |
| Total Liabilities and Equity | 914,205 | 944,629 | 899,627 | 942,226 | 895,828 |
| 27 |
| |
Balance Sheet – Foreign Currency Exposure
| Foreign Currency Exposure | BBVA ARG Consolidated | Chg (%) | |||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Assets | |||||
| Cash and deposits in banks | 151,333 | 139,034 | 149,062 | 8.8% | 1.5% |
| Debt securities at fair value through profit or loss | 1 | 1 | 5 | (5.6%) | (86.9%) |
| Derivatives | - | - | 15 | N/A | (100.0%) |
| Other financial assets | 3,180 | 2,744 | 3,067 | 15.9% | 3.7% |
| Loans and other financing | 24,987 | 41,681 | 39,908 | (40.1%) | (37.4%) |
| Other financial institutions | 158 | 343 | 558 | (53.8%) | (71.6%) |
| Non-financial private sector and residents abroad | 24,829 | 41,339 | 39,350 | (39.9%) | (36.9%) |
| Other debt securities | 236 | 157 | - | 50.1% | N/A |
| Financial assets pledged as collateral | 5,273 | 5,402 | 6,430 | (2.4%) | (18.0%) |
| Investments in equity instruments | 36 | 34 | 31 | 7.2% | 17.0% |
| Total foreign currency assets | 185,046 | 189,053 | 198,518 | (2.1%) | (6.8%) |
| Liabilities | - | - | |||
| Deposits | 169,464 | 178,465 | 178,052 | (5.0%) | (4.8%) |
| Non-Financial Public Sector | 3,991 | 4,076 | 4,532 | (2.1%) | (11.9%) |
| Financial Sector | 52 | 63 | 79 | (18.2%) | (34.6%) |
| Non-financial private sector and residents abroad | 165,421 | 174,326 | 173,441 | (5.1%) | (4.6%) |
| Other financial liabilities | 10,619 | 12,123 | 16,158 | (12.4%) | (34.3%) |
| Financing received from the B.C.R.A. and other financial institutions | 3,564 | 3,813 | 844 | (6.5%) | 322.3% |
| Other non financial liabilities | 2,326 | 1,288 | 1,707 | 80.6% | 36.3% |
| Total foreign currency liabilities | 185,972 | 195,689 | 196,761 | (5.0%) | (5.5%) |
| Foreign Currency Net Position - AR$ | (926) | (6,636) | 1,757 | 86.0% | (152.7%) |
| Foreign Currency Net Position - USD | (9) | (69) | 23 | 86.5% | (140.7%) |
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| |
Income Statement
| Income Statement | BBVA ARG Consolidated | Chg (%) | |||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Interest income | 52,040 | 47,723 | 39,817 | 9.0% | 30.7% |
| Interest expense | (22,831) | (21,160) | (14,428) | (7.9%) | (58.2%) |
| Net interest income | 29,209 | 26,563 | 25,389 | 10.0% | 15.0% |
| Fee income | 10,339 | 10,422 | 9,559 | (0.8%) | 8.2% |
| Fee expenses | (4,153) | (4,489) | (4,977) | 7.5% | 16.6% |
| Net fee income | 6,186 | 5,933 | 4,582 | 4.3% | 35.0% |
| Net income from financial instruments at fair value through P&L | �� 856 | 1,368 | 1,351 | (37.4%) | (36.6%) |
| Net loss from write-down of assets at amortized cost and fair value through OCI | (37) | (18) | (1,358) | (105.6%) | 97.3% |
| Foreign exchange and gold gains | 1,171 | 1,291 | 2,467 | (9.3%) | (52.5%) |
| Other operating income | 1,583 | 1,980 | 2,287 | (20.1%) | (30.8%) |
| Loan loss allowances | (2,455) | (2,323) | (1,414) | (5.7%) | (73.6%) |
| Net operating income | 36,513 | 34,794 | 33,304 | 4.9% | 9.6% |
| Personnel benefits | (7,381) | (6,949) | (6,988) | (6.2%) | (5.6%) |
| Administrative expenses | (8,801) | (6,424) | (6,648) | (37.0%) | (32.4%) |
| Depreciation and amortization | (1,195) | (1,299) | (1,277) | 8.0% | 6.4% |
| Other operating expenses | (5,864) | (6,079) | (4,127) | 3.5% | (42.1%) |
| Operating expenses | (23,241) | (20,751) | (19,040) | (12.0%) | (22.1%) |
| Operating income | 13,272 | 14,043 | 14,264 | (5.5%) | (7.0%) |
| Income from associates and joint ventures | (89) | 190 | (17) | (146.8%) | (423.5%) |
| Income from net monetary position | (8,285) | (9,545) | (7,039) | 13.2% | (17.7%) |
| Income before income tax | 4,898 | 4,688 | 7,208 | 4.5% | (32.0%) |
| Income tax | (1,512) | 3,203 | (1,782) | (147.2%) | 15.2% |
| Income for the period | 3,386 | 7,891 | 5,426 | (57.1%) | (37.6%) |
| Owners of the parent | 3,380 | 7,889 | 5,428 | (57.2%) | (37.7%) |
| Non-controlling interests | 6 | 2 | (2) | 200.0% | 400.0% |
| Other comprehensive Income (1) | (221) | 82 | 1,620 | (369.5%) | (113.6%) |
| Total comprehensive income | 3,165 | 7,973 | 7,046 | (60.3%) | (55.1%) |
| 29 |
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Income Statement – 9 month accumulated
| Income Statement - 9 month accumulated | BBVA ARG Consolidated | ||
| In millions of AR$ - Inflation adjusted | 2021 | 2020 | Var % |
| Interest income | 144,269 | 119,060 | 21.2% |
| Interest expense | (62,371) | (39,174) | (59.2%) |
| Net interest income | 81,898 | 79,886 | 2.5% |
| Fee income | 30,071 | 28,920 | 4.0% |
| Fee expenses | (13,883) | (15,992) | 13.2% |
| Net fee income | 16,188 | 12,928 | 25.2% |
| Net income from financial instruments at fair value through P&L | 4,165 | 5,153 | (19.2%) |
| Net loss from write-down of assets at amortized cost and fair value through OCI | (95) | (2,963) | 96.8% |
| Foreign exchange and gold gains | 3,548 | 7,060 | (49.7%) |
| Other operating income | 5,438 | 5,958 | (8.7%) |
| Loan loss allowances | (7,099) | (8,565) | 17.1% |
| Net operating income | 104,043 | 99,457 | 4.6% |
| Personnel benefits | (21,411) | (21,175) | (1.1%) |
| Administrative expenses | (21,690) | (19,146) | (13.3%) |
| Depreciation and amortization | (3,790) | (4,084) | 7.2% |
| Other operating expenses | (17,578) | (14,156) | (24.2%) |
| Operating expenses | (64,469) | (58,561) | (10.1%) |
| Operating income | 39,574 | 40,896 | (3.2%) |
| Income from associates and joint ventures | 66 | 341 | (80.6%) |
| Income from net monetary position | (26,985) | (17,618) | (53.2%) |
| Income before income tax | 12,655 | 23,619 | (46.4%) |
| Income tax | 2,221 | (8,903) | 124.9% |
| Income for the period | 14,876 | 14,716 | 1.1% |
| Owners of the parent | 14,917 | 14,590 | 2.2% |
| Non-controlling interests | (41) | 126 | (132.5%) |
| Other comprehensive Income (1) | (418) | 7,206 | (105.8%) |
| Total comprehensive income | 14,458 | 21,922 | (34.0%) |
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| |
Income Statement – 5 Quarters
| Income Statement | BBVA ARG Consolidated | ||||
| In millions of AR$ - Inflation adjusted | 3Q21 | 2Q21 | 1Q21 | 4Q20 | 3Q20 |
| Interest income | 52,040 | 47,723 | 44,506 | 43,858 | 39,817 |
| Interest expense | (22,831) | (21,160) | (18,380) | (17,113) | (14,428) |
| Net interest income | 29,209 | 26,563 | 26,126 | 26,745 | 25,389 |
| Fee income | 10,339 | 10,422 | 9,310 | 10,314 | 9,559 |
| Fee expenses | (4,153) | (4,489) | (5,241) | (6,479) | (4,977) |
| Net fee income | 6,186 | 5,933 | 4,069 | 3,835 | 4,582 |
| Net income from financial instruments at fair value through P&L | 856 | 1,368 | 1,941 | 5,689 | 1,351 |
| Net loss from write-down of assets at amortized cost and fair value through OCI | (37) | (18) | (40) | (200) | (1,358) |
| Foreign exchange and gold gains | 1,171 | 1,291 | 1,086 | 1,470 | 2,467 |
| Other operating income | 1,583 | 1,980 | 1,875 | 2,639 | 2,287 |
| Loan loss allowances | (2,455) | (2,323) | (2,321) | (5,035) | (1,414) |
| Net operating income | 36,513 | 34,794 | 32,736 | 35,143 | 33,304 |
| Personnel benefits | (7,381) | (6,949) | (7,081) | (6,653) | (6,988) |
| Administrative expenses | (8,801) | (6,424) | (6,465) | (6,629) | (6,648) |
| Depreciation and amortization | (1,195) | (1,299) | (1,296) | (1,485) | (1,277) |
| Other operating expenses | (5,864) | (6,079) | (5,635) | (8,333) | (4,127) |
| Operating expenses | (23,241) | (20,751) | (20,477) | (23,100) | (19,040) |
| Operating income | 13,272 | 14,043 | 12,259 | 12,043 | 14,264 |
| Income from associates and joint ventures | (89) | 190 | (35) | 33 | (17) |
| Income from net monetary position | (8,285) | (9,545) | (9,155) | (9,358) | (7,039) |
| Income before income tax | 4,898 | 4,688 | 3,069 | 2,718 | 7,208 |
| Income tax | (1,512) | 3,203 | 530 | (2,327) | (1,782) |
| Income for the period | 3,386 | 7,891 | 3,599 | 391 | 5,426 |
| Owners of the parent | 3,380 | 7,889 | 3,648 | 533 | 5,428 |
| Non-controlling interests | 6 | 2 | (50) | (143) | (2) |
| Other comprehensive Income (1) | (221) | 82 | (279) | (365) | 1,620 |
| Total comprehensive income | 3,165 | 7,973 | 3,320 | 26 | 7,046 |
Ratios
| Quarterly Annualized Ratios | BBVA ARG Consolidated | Chg (%) | |||
| In % | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Profitability | |||||
| Efficiency Ratio | 69.0% | 67.9% | 78.7% | 106 bps | (977)bps |
| Efficiency Ratio (excl. Inflation adjustments) | 51.9% | 47.1% | 57.4% | 480 bps | (551)bps |
| ROA | 1.4% | 3.4% | 2.4% | (199)bps | (97)bps |
| ROE | 9.3% | 22.2% | 14.1% | (1,290)bps | (480)bps |
| Liquidity | |||||
| Liquid assets / Total Deposits | 76.9% | 75.7% | 66.0% | 119 bps | 1,090 bps |
| Capital | |||||
| Regulatory Capital Ratio | 23.5% | 23.3% | 23.1% | 28 bps | 43 bps |
| TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) | 22.9% | 22.6% | 22.5% | 31 bps | 46 bps |
| Asset Quality | |||||
| Total non-performing portfolio / Total portfolio | 2.54% | 2.49% | 1.16% | 5 bps | 138 bps |
| Allowances /Total non-performing portfolio | 181.76% | 187.89% | 355.26% | (613)bps | (17,350)bps |
| Cost of Risk | 2.80% | 2.61% | 1.37% | 19 bps | 142 bps |
| 31 |
| |
| Accumulated Annualized Ratios | BBVA ARG Consolidated | Chg (%) | |||
| In % | 3Q21 | 2Q21 | 3Q20 | QoQ | YoY |
| Profitability | |||||
| Efficiency Ratio | 69.7% | 70.1% | 62.9% | (44)bps | 679 bps |
| Efficiency Ratio (excl. Inflation adjustments) | 49.7% | 48.5% | 50.3% | 118 bps | (60)bps |
| ROA | 2.1% | 2.5% | 2.2% | (32)bps | (9)bps |
| ROE | 14.0% | 16.5% | 13.2% | (252)bps | 82 bps |
| Liquidity | |||||
| Liquid assets / Total Deposits | 76.9% | 75.7% | 66.0% | 119 bps | 1,090 bps |
| Capital | |||||
| Regulatory Capital Ratio | 23.5% | 23.3% | 23.1% | 28 bps | 43 bps |
| TIER I Capital Ratio (Ordinary Capital Level 1/ RWA) | 22.9% | 22.6% | 22.5% | 31 bps | 46 bps |
| Asset Quality | |||||
| Total non-performing portfolio / Total portfolio | 2.54% | 2.49% | �� 1.16% | 5 bps | 138 bps |
| Allowances /Total non-performing portfolio | 181.76% | 187.89% | 355.26% | (613)bps | (17,350)bps |
| Cost of Risk | 2.73% | 2.62% | 2.81% | 11 bps | (8)bps |
About BBVA Argentina
BBVA Argentina (NYSE; BYMA; MAE: BBAR; LATIBEX: XBBAR) is a subsidiary of the BBVA Group, the main shareholder since 1996. In Argentina, it is one of the leading private financial institutions since 1886. Nationwide, BBVA Argentina offers retail and corporate banking to a broad customer base, including: individuals, SME’s, and large-sized companies.
BBVA Argentina’s purpose is to bring the age of opportunities to everyone, based on our customers’ real needs, providing the best solutions, and helping them make the best financial decisions through an easy and convenient experience. The institution relies on solid values: “The customer comes first, We think big and We are one team”. At the same time, its responsible banking model aspires to achieve a more inclusive and sustainable society.
Investor Relations Contact
Ernesto Gallardo
Chief Financial Officer
Inés Lanusse
Investor Relations Officer
investorelations-arg@bbva.com
ir.bbva.com.ar
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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: | November 24, 2021 | By: | /s/ Ernesto Gallardo Jimenez | ||
| Name: | Ernesto Gallardo Jimenez | ||||
| Title: | Chief Financial Officer | ||||