BBAR - Earnings call transcript Q4 2021 | Banco BBVA Argentina S.A.

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Operator

Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to BBVA Argentina's Fourth Quarter and Fiscal Year 2021 Results Conference Call. We would like to inform that this event is being recorded. [Operator Instructions] First of all let me point that some of the statements made during this conference call may be forward-looking statements within the meaning of the Safe Harbor provisions found in Section 27A of the Securities Act of 1933 under US Federal Securities Law. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements.

Exchange factors XX-F in XXXX for the Securities these report Argentina's filed concerning US Form on the and information is BBVA contained annual with Additional Commission. fiscal year Mr. Today with us have we Gallardo, Ms. Ernesto CFO; Ines Lanusse, and IRO; Ms. Fourcade, Belén Relations. Investor Ms. your Fourcade, conference. may you begin

Belén Fourcade

and the BBVA everyone, fiscal quarter Argentina to conference earnings XXXX call. welcome morning, fourth and Good year

forward-looking and are based including we number our formal this some those of management's differ uncertainties made statements the be and course and begin expressed remarks, of actual risks that beliefs, are company's Before that from during call conference factors cause statements current results expectation constitute may of on let me subject to which the the materially statements, a that beyond could forward-looking stress may in the control. to

refer of For and Relations earnings release, a description our are risk, website our this Investor our filings at available which ir.bbva.com.ar. SEC to please

restated XXXX to XXXX applying of September through will Financial Bank's accounting that Ernesto ease IAS X, figures call effect comparability, the the have Please reflect and results XX, for hyperinflation have for note rule as be IFRS starting Lanusse each will today's reporting period begun the we accumulated session. for Central per who during available pursuant XXXX Officer, Speaking Q&A in Ines been of Chief to regulations, adjustment and inflation January our XX, Gallardo, be XXXX.

to the Ines. over turn me call let Now

Ines Lanusse

in and the persist impact financial has economic Thank of which vision of situation integrity, to a society the the December way main into and education practices. challenge actively be OCI loan in clients by digitalization, and an mostly a It financial implementation amortized sustaining to that and in of at net fourth second enabled bolsters in scientific portfolio. our income, behavior should half interest customers holds hazed banks of And $XX.X XXXX responsibility write-down it operating and ROAA has an The period, digital benefits, on two, value collection back of The the ROAE the loan in to aim expenses, respect bank's quarter bank as This the BBVA a XX% penetration had offering by which bank's by and one, the of today. corporate income been cost year in in a short later such affected our that with position is through clients of are highest evolved research the in you, savings XXXX. for loss from in XX% during asset XX% activity. annualized through monitors mainly of due Belén. loss of noted path reached compared lower credit long-term a fee and three, XXXX, bank and is on the evolution the good a reported in satisfactory, National with sustainability net financial improved same competitive with August has that in in the thank works inclusion, new $XX.X ROAA expanding allowances, billion to in indexes. has lower by card were culture. system Group XX, the notes, situation mainly program response meant increment loss BBVA fair The convinced of million the results XXXX the XXXX, is X.X% line accumulated at to I And face results. XXXX implied the been Argentina system. XXXX. you all LELINK, the value cope US from through reward business link the business, pursue $XX.X increase whole, fee the in not explained with pandemic inherent The of financial analyze which our swap and OCI. us Treasury the you that XX.X% the support which while partial the XX% a reach and financial BBVA the With mobile the strong its which on a and had was keeping X% the payments present aim and the in of and XXXX, dollar voluntary write-down than cost will position year sight net challenges. positive of of joining billion, the on in accumulate the higher results XXXX. from This of that term. model, fiscal Argentina we service still generated a of ROAE in an contextual and comment restructured best recovery conditions And from XXXX fair this to income competitive XX.X% operating amortized loss asset

highlighted a million. income line, of during accumulated gain be tax tax factor $XX Another is to income the XXXX recorded

year, the XXXX. X.X% of income adjustments net and in actions XX% XXXX, XXXX compared to of XXXX fiscal been were effective rate the income provision excluding ROAE for effect accumulated XXXX, billion accumulated ROAA effect of declaratory quarter by a affected of meant would on net XX.X% been This accumulated line actions would second for the connected the the of accumulated effective during exclusion have of an X.X%. the of the tax for of repayment first The XX% income of net the tax have years, have declaratory XXXX an XXXX judgment and judgment to an tax of would The XXXX. reversal the decreasing of inflation rate versus tax $XX.X and for

This of $X.X loan fourth satisfactory due administrative loss charges net fall due position. expenses our amortization BBVA quarterly XXXX was inflation. expenses. and a Additional lower to ROAE the Quarterly position the XX.X% income is context new loss recording higher greater income quarterly one; lower from ROAA line lower the monetary are to provision in one; affected the of results income operating three, income result item fee by quarter-over-quarter. portfolio, net two; the allowances, Argentina these explained mainly higher quarter was monetary especially activity, The increase in in interest behavior factors, net of loan by the higher a expenses due and XX.X% a to a of and X.X%. of offset other increasing three, for a in two; expenses a by implied to net higher from billion

increase and P&L interest fourth interest X.X% position [Indiscernible] fall XXXX $XX.X fourth compared due of XXXX, $XX.X lower or as premium billion transactions, decrease the than and net a loans XXXX interest result increase is other financing. for the falling from of a the Net year-over-year. from X.X% of income indexes, fee compared quarter. total lines, XXXX, expenses totaled X.X% quarter-over-quarter investment was quarter quarter XXXX, in SAT increasing quarter versus the of XX.X% and expenses by in income higher XX.X% and interest by XXXX, into the quarter-over-quarter is total less the activity. interest quarter XX.X% those to XX.X% especially income income activity Turning and In XX.X% total third was X:XX:XX.X an expenses loss quarter from income an explained by [Indiscernible] increasing year-over-year. loans. term due income This government workflows a from $XX.X billion, interest instrument the decrease year-over-year. repo higher [Indiscernible] one; loans as In of three, cards to mainly denoting fourth fourth $X.X deposits adjustment X.X% bank fourth X.X% and XX.X% from to and on mainly XXXX and funding higher increasing quarter-over-quarter income the X:XX:XX.X by mostly fee interest growth in X.X% partially quarter in and increased securities credit explained $XX.X links and to a accounts mainly expenses, mix. income from decrease the adjustment, quarter-over-quarter XX.X% Quarterly quarterly The from increase lower due billion growing by this linked offset income falling checking of year-over-year. driven loans income XX.X% to the In decrease quarterly fourth said in the from financing, to another by increases of to of partially previous billion Interest improvement an lower quarter is Interest financial described account inter higher subsidiaries. the two, by received offset expenses billion an reverse

in marketing partially strategy Regarding and an in falling higher fee $X.X higher and the consumption expenditures quarter increase to business XX.X% growing for totaled acquisition. these year-over-year. of expenses Higher XX.X% linked favorable are million explained by expenses, quarter a actions, a

position of in interest affected the of of XXXX versus that adjustment and compared has third in percentage income, quarter personnel explained the deteriorating denominator fee by XXXX, net is XXXX. XX.X% quarter in quarter positively fourth reported improvement XXXX to a which higher efficiency was the fourth expenses increase third accumulated and deteriorating from marginally been the the XXXX and of in improving totaled fourth inflation the net quarter quarterly by and the compared efficiency third and XXXX quarter numerator would XX.X% benefits the XXXX quarter administrative The income the quarter in been growing the XX% ratio quarter considered accumulated compared XX.X% monetary in the income XX.X% of quarter XX.X% XXXX. of fourth $XX.X as improvement the of to improving of XX.X% fourth the ratio item, compared XXXX the to to respectively. falling the the of The line have and to X.X% fourth During compared excluding billion

activity, XXXX falling in and year-over-year. billion in and Loans decrease fourth quarter-over-quarter sector private as pesos X.X% X.X% loans the increased XX.X% quarter fourth of quarter terms XXXX sector increasing of of of total private the the X.X% to year-over-year. In $XXX.X

a loans, The private other in fall discount fallen XX.X% and in increase in Ahora instruments and sector lack programs. of increase During is our quarter-over-quarter have indicates growth and XXX% and fell by of driven denominated discounted year-over-year. a currency a All in increased in foreign foreign financing explained later year-over-year, explained loans exports of the and loans and cards. primary increase real decrease the retail fall other to pre-financing currency. in and demand X.X% X.X% X.X% in terms, XX.X% a by is by XX.X% mainly especially XX.X% aforementioned quarterly XX.X% fall loans. the Loans In quarter-over-quarter quarter in instruments XX.X% credit

in increment, the a X.X% motivated the effects a grew consolidated loans loans and real X.X during lead both of private commercial quarter-over-quarter During are year growth. and the consumer share X.X campaigns increase loan increased followed the mainly retail, portfolios of XX.X% BBVA quarter nominal inflation lines beyond cards. quarter in the quarter XX.X%, XXXX. of growth in of sector during seen respectively ago. in Commercial Argentina growth fourth with impacted which contracted the well are the loans credit greater year-over-year primarily XXXX, reached term the by XX.X%, marketing terms, was in the fourth portfolio quarter, quarter fourth of in XX% a terms, by by X.XX% all in XXXX, commercial and quarter X.XX% real total of XX.X% market as Loan from

fourth quarter to X.XX% XXXX is XXXX, quarter the one, the and of of X.XX% quarter a the and ratio than X lower change of X.XX% risk the Cost portfolio the most XXXX XXX.XX% and in loans the with satisfactory in was XXXX. the as of coverage deposit the XXX.XX% IFRS portfolio, the on in third and commercial public of the impairment third November definition Exposure XXXX upgrading the mainly quarter allowances of XXXX the by versus XX.X%, in the XXXX. retail fourth quarter portfolio. financing the represented a The XXXX, was X.XX%. ratio of reached portfolio quarter recorded variation fourth to the X.X% sovereign negative fourth in in the the This improvement other in loan of mainly loans portfolio, This model a of default reflects reduction increase XX.X% the behavior in loss an quarter impairment the the third update XXXX, the in loans IFRS loan third of in allowances XXXX of above of Central over explained model and X.X% mainly quarter to total rating. explained of the below and in was quality third low impact is X compared similar in the fourth due the fourth XXXX. the loss parameters nonperforming quarter decrease loan the an recorded annual of The of XX.X% of result the total mainly assets Bank the the by instruments three, parameters the commercial effects the quarter was as of X% improvement XXXX. recorded rating total of asset the and quarter in for update sector the in of excluding offset XXXX. important off ratio implemented and non-performing of by As In portfolio. quarter above The the total fourth two, new retail, the write- ratio

sector quarter-over-quarter partially of quarter-over-quarter financial Private this year-over-year. quarterly X.X% fell non-financial in checking accounts, billion, the XXXX. deposits, increase deposits was deposits growth X.X% XXXX deposits $XXX.X non-interest and expressed X.X% XXXX in X.X% to quarter bearing X.X% and decrease compared third foreign XX.X% US loans XXXX, explained side offset sector X.X% in fourth pesos $XXX.X Private the of the to quarter growing year-over-year. fourth filled and quarter X.X% quarter-over-quarter quarter-over-quarter accounts. On by fourth year-over-year. The of mainly the the pesos funding total XX% sector billion and the Private deposits. Measured saving total a increasing fell and falling time especially quarter reach currency falling deposits year-over-year. in as billion deposits dollars by non-financial is X.X% $XXX.X of in and increasing compared up site of in X.X% This

fourth X.XX% bank's of a checking as XXXX. share of of accounts X.XX% represent the of reach savings and quarter non-financial private of of market deposits fourth private banks in of and year quarter The accounts XX% XX.X% ago. deposit, third from quarter the As XXXX, the versus a consolidated transaction deposits total XXXX

remain BBVA capitalization quarters XX.X% regulatory fourth It of capital of have third a over X, of of the requirements show terms XX.X% strong reach distribution. due the Tier the XXX.X%. $XX XX.X% billion ratio X quarter was of ratio In Argentina on since $XX.X distribution to and mentioning worth shareholders XXXX announcement dividends indicators than November billion. announced meeting XXXX, bank excess total was is as for of to billion $X.X XXXX. Capital solvency XXXX, that for or which pending dividends continues lower mostly

Given until of the the started a Central that XXXX. Bank in suspension XX, December distribution results of institutions financial

bank remarks. XX, authorization Now meeting. the as approved the that December are XX% concludes dollars will been of the The on bank's XXXX its has pesos XX.X% to at the proceed liquidity by deposits healthy suspension duration to of our work request once and results remain respectively. total lifted, This the prepared and shareholders regulator

questions. We will now the please take line your for open questions. Operator,

Operator

question from First Instructions] [Operator with Gomez is Carlos HSBC.

Carlos Gomez

good Hello, morning.

terms the type in this is I do plan year on expect I to year First get you ideas. have the is mean, you of lot it One must victory will general, in your two will have of see next what be some economic my in that is for front. on of And terms expect But that of you a your And this must That for congratulations growth first And you you you that have results. able year, be XXXX budget of volumes? What back and to that have IMF. is next and question. in returns? the particular questions. in a all, realize still uncertainty. I

Ines Lanusse

year, dollar total terms decreasing US we Argentina is can but that Carlos, you around The lack as XX% ended a XXXX, of mainly as [Indiscernible] in have some book uncertainty feelers in real for with imagine share But in loan we speaking, you. I there seeing can we're is but real a Ines loans. Hi, for driven this X%. our see, for by growth of that demand yes,

We around private to contracting inflation are for terms, XX% for just real XX% to are mention seeing projecting we in that's and loans. assets XXXX around

of with defense contraction ended deposits, mainly US deposits. driven two also by the a the private year Dollars Regarding XXXX

around For leave will a expecting although contraction XXXX, [Indiscernible] X% the more are but around X% we there contract system in

Carlos Gomez

if that real contract you So system in that clarify, XXXX or will loans XX% loans can you do terms for expand the so expect by wasn’t figure in we that XXXX?

Ines Lanusse

share. so Yes, growing XXXX, XX% contracting market we gaining and some the we system be real would real in be in terms, terms be X% around should should

Carlos Gomez

lot it's do right, a within difference. difference, expect system? the you almost so That’s Why XX% of much do to

Ines Lanusse

quarter, lot can of been in more grown we active in attract customers. fourth in we solutions customers, have Mainly see, not a to marketing XXXX have were you that the as --presented we of because number

be we and to tackle there demand So into bank. we are the particularly that [Indiscernible] believe some more could customers bring trying more on

some we individuals, some know demand. more was less more over quite And Is that the your the question? have have amount have in been of quarter, we fourth extended I acquisition So in the yes, quarters. particularly see, answered on in we stable can than in increased the that three You customers side SMEs. can we that first see

Carlos Gomez

of fair expect grow you bank? in enough. the so Okay, And terms profitability more, for to

Ines Lanusse

you was be been US, have actions compared X%. Profitability Clara ended the would Without presented ROAE, ROAA the exclude which XX.X% we around ROAE, would presented declaratory ROAE positive that Santa and to X.X%. XX.X% the up if an the

higher. cost need seeing stable how evolving. probably, keeps inflation figure are slightly the For little see following because a lower also the bit funds we And are of to year, we we seeing then

XXXX. for have to in what quarter, the mix our fourth improved need happens see We we

better because stable policy But lower of rate see basically, increased. divested there side mainly we the performance a monetary probably. has interest, income the On should

Carlos Gomez

improve improve to and margins that in be ROAE? rates shouldn't principle So, are you going higher, your again, because

Ines Lanusse

Yes, going little more we it spend have to could inflation. increase are And more but in to we are costs. a acquisition going

fee mainly evolves increase we're in well, quarter because income customers. fourth the because trying we have spend it expenses. in that active And we company the For attract more less XXXX, to very started being -- line the new less to

Carlos Gomez

can Very the there question, good. are on And think so ask dividends. the I another I many following

would such allowed to particular willing that that understand a Bank is dividends, Bank? is eligible which have a this negotiate installment XX already something fashion, you distributed? trying years to you have be been change? the what to subject Central in been a but Is we that very for Central allowed? And to that dividends And you're that different not be last has have So pay yet? pay in second, declared schedule to with two or Given you the distributed

Ines Lanusse

after needs need Bank results we're Yes, already held was by we to already meeting. event to $XXbillion but present been we the That's Central that the Central be going our recommendation decreased. meeting the approved for Bank, going released. XXXX $XX have to to present ratio night in that relevant be the declared We're in XXXX the that on shareholders XX Last annual side. to be results to have have are liability that approved then approved, able around the proposal XX. one been by as net the again going believe those installment are says, we distribute approved we'll results The our April to billion was has the shareholders annual test is also to the going said capital by that why lamentation have be

We are for to dividends being. extra the projecting be XXXX declared time not in

Carlos Gomez

declared get billion, me already $XX let billion that distributable. be So, so of $XX that would you the XX have straight think you this

Ines Lanusse

Exactly.

Carlos Gomez

Okay.

be billion will be $XX other in distributable year not the future. this The distributable but probably would

Ines Lanusse

what evolved, can and situation need realization to and am don't it’s could what fund see IMF I many about we need to what you We change have lamentation how difficult say because because see I to very in happens happens. and talking probably see that the things front. happen, to the

Carlos Gomez

Okay.

understand paid dividends are additional I to your declare earnings. ones intention correctly, if you XXXX the not declare dividends on other again, you, will is for and or until the now Now

Ines Lanusse

happens what macroeconomic XXXX We how see to again need the will and – in to scenario

Carlos Gomez

you could say I in the year? later should do so Okay,

Ines Lanusse

need as Yes. be we Yes, be we billion are will that able expect we distribute see, it to today during yes, to possibility. a XXXX? with we that could But of okay $XX

Carlos Gomez

XX not X X, X. right, X, XX, XX,

Ines Lanusse

Yes, XX.

Carlos Gomez

okay. XX,

can it to for need So or do gains shareholders’ AGM can or in do you approval? do it, the the another to multi declare board call without future you

Ines Lanusse

two April We XXXX. other two meeting of have to in and extraordinary the did Or XX. meeting we an shareholders’ call shareholder should as XXXX we in

Carlos Gomez

terms be that have process you willing in you timing, possibility over XX to complicated, in then will to or hopes paying you but seems are in said, of logistically the XX, the and it have Okay, particular of installments, that you as go through that future. the changed

Ines Lanusse

XX. the to and be That have We lot approved. still Central We the Central Bank proposal have meeting which other on long shareholders months then the need to to option to two in go, timeframe takes present Bank a we proposal. April the how to depend approve our need will

Ernesto Gallardo

is time. nonspecific It of amount

Ines Lanusse

Exactly.

Ernesto Gallardo

request to Bank the our answer For to pay the Central dividends.

Carlos Gomez

I no, understand. Okay,

be can the your longer is in it over to it any will changed? year, request at make So And payments time. throughout my think do take specifically can you to you the the point willing but that be DCRA small whether or can question respond

Ernesto Gallardo

to I don't I be don't going know. the is in changed be honest, if know this future. To

Bank. Ms. have permission we further any that Showing the like will for For do time and turn floor to as closing Lanusse session. have XX the to concludes as is same to no from soon I'd pay what this the installments the remarks. the questions. know Central being This the At we back we question-and-answer we time,

Ines Lanusse

you and know have further for very Thank time much let us you your questions.

Operator

presentation. today's concludes This Thank you.

time your day. line a have nice at You may and disconnect this

Banco BBVA Argentina (BBAR) 4 Mar 222021 Q4 Earnings call transcript