BBAR - Earnings call transcript Q2 2022 | 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 Second Quarter 2022 Results Conference Call. We would like to inform you that this event is being recorded and all participants will be in a listen-only mode during the company presentation. [Operator Instructions] First of all, let me point out 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 U.S. federal securities law. subject to and expressed differ forward-looking are cause that in statements statements. results actual materially forward-looking to uncertainties risks could the These from those

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

Belén Fourcade

everyone and earnings section. presentation information website morning, by will welcome Good Relations second to financial slide quarter conference be BBVA XXXX available a webinar Investor the Argentina's on our call. Today's on supported

Financial note accounting Officer session. IFRS we be a XX. today's Q&A starting bank per results for that applying will will hyperinflation pursuant Speaking Lanusse during and Chief call available Please X, Ines begun reporting regulation, central to be XXXX, January have as IAS Ernesto our rule Gallardo,

comparability For XXXX. have inflation period XX, June XXXX accumulated been through adjustments for ease of the reflect and effects of to each restated figures XXXX

turn me Ines. call let Now, over the to

Ines Lanusse

indexes. inflation a BBVA facing with context of you, debt distortions its International within has With capped a Monetary foreign policy. difficulties Argentina currency in reached with uncertainty FX and A support thank a presents markets. sustainability although Belén, Fund, Group under and future culture. the through model, you integrity, the context, of sustained joining economic responsibility local of vision Argentina BBVA market situation bank long-term continue volatility the and high society today. development XXXX has corporate research education with about and has significantly a to the the March encourages financial rate. Thank inclusion, with the in of practices characteristic bank's increased In especially The COVID-XX market persist established global in best able recovery, and exchange great been control, persists works pandemic business favorable with correcting scientific main all us challenges highest macroeconomic which and objectives the and less of this agreement meeting high economic for in and the loan the

can webcast Moving a dynamics, service Slide stable three such of back. the you June in into see XXXX way remaining has digital evolved reached as penetration on that business presentation, clients' end the compared offering a of XX% a to year by

this been side from year. in XX.X% that customers the of of has reached aim of XX% of period same While mobile satisfactory the in bad on response we XX% and are clients the last to The convinced pursue the a is in as financial from system. and sustaining XX%, our of digital slightly from the to increasing sales sales. in the a and have second competitive expanding decision percentage of increased units quarter Retail XX% of XXXX measured XX.X% to

position acquisition XX% operating reached aim financial channels The customer XXXX challenges. competitive XX% second to second actively business in digital the results of through conditions XXXX. of face of keeping in New the bank its contextual and the quarter in a monitors quarter from

line the second XXX.X% fee by quarter a quarter explained increasing on mainly ROA ARSXX.X was second operating results quarterly of quarter-over-quarter. XX.X% ROE X.X%. ARSXX better Moving four, ARSXX This first XXXX participation the period the a the net benefit result quarterly in Quarterly bank's include comment fair deferrals. the recorded These a of to to was the Bank the net by XXXX increase we fall quarter of net quarter effects improved Prisma income measured at of results. tax income the financial This greater now Slide the operating tax offset above of interest first allows XXXX. second through Argentina a of a billion above expense. of partially financial of in in of BBVA income in sale Net income, Operating were quarter implied P&L, from by remaining instruments three, the lower and net were income for in income which income, billion billion, one, expenses. operating operating as the in XX.X% a of XXXX. two, effects are XXXX value

of Interest especially stand quarter, P&L previous the to first ARSXX.X last the for fell due XXXX, from X.X% of in link interest income has the of adjustment interest accounts the increased billion net removed this from All of of second time on higher the central to CER/UVA was during deposits by Turning by driven expenses of in expenses that government XX.X% from together Net out year-over-year. quarter. liabilities increasing to interest and Interest the quarter. the checking increased XX.X% our the LELIQ. into of expenses. second monetary five, compared the and volume instruments securities, XX.X% of with by the close in second in increase quarter XX% fee considering adjustments, offset in on totaled increased lower from XXXX an linked increasing increased XX% increasing quarter-over-quarter such expenses explained increase indexes and in the of more rate terms government income quarter place with previous income Two, account nominal increasing the driven lack XX.X% investment of income activity. repos in explained are was XX% quarter a premium one, by feeing higher decline second the with the to income bank. market reverse income XXXX. in because to than In mainly lines expenses, loans Income time securities year-over-year. quarter the deposits, and position versus fee the including in an billion, other income also ARSXX.X the quarter position adjustment increase in transactions an higher XX.X% as overdrafts quarter-over-quarter gradually especially increasing by mainly XXXX, prices the such interest XXXX Slide of and mainly In Interest both rate quarter-over-quarter implement from CER/UVA from quarter.

this e fee into XX.X% expenses, lifetime benefit BBVA quarter-over-quarter, cards. program program and and the Puntos the the of explained expenditure partially to from emigration by debit contracted clients Regarding credit lower linked

the XXXX. the On allowances loss X.X% thanks decreased in behavior, second especially a good quarter book. of portfolio loan to commercial quarter-over-quarter,

unions, explained operating billion, XXXX. administrative During stock expenses Personal expenses quarter the by collective in wage benefits retroactive first quarter will of variable quarter total quarter-over-quarter, corresponding of on partially XX% its and grew April not XX.X% the effect were was second increasing XX% ARSXX.X reevaluated benefits the the to XX.X% and personal during were quarter XXXX, the XXXX, of reached versus and Also the XXXX compensation increased. by of taken obligations quarter-over-quarter second agreement XXXX. the first impact it

As first of in aforementioned as the net quarter explained versus second in reported two, to compared efficiency fall was of transportation the tax the from XXXX of explained administrative second and in an thanks expenses. reduction the XXXX. XX.X%, the fee expenses quarter software especially maintenance items quarterly an the higher negative expenses in explained municipal given is the a numerator, increase in in armored The The plan in improving effect increased the expenses, the were the results of reported and three reparation XXXX, in of applied XXXX one, offset charges, by line XX.X% and percentage and administrative on efficiency better quarter to accumulated quarter second items an in rent, a and X.X% the improvement the of by of XX.X% interest the ratio by increase quarter latter. quarter-over-quarter, The partially outsourced increase and income. a increase deteriorating by denominator is increase

foreign by discounted quarter-over-quarter, the mainly XX.X% promoted explained a increase and by and In of second the In terms Slide credit increasing compared by especially the second investors financing compared loan in billion, in on lines followed second increase to other fees, private productive to in financing exports increase cards X% retail by only pesos total growth in boosted loans corporate an of quarter in by increased XXXX, XXXX, ARSXXX.X in instruments. quarter and the transaction Loans consolidated X.X% aforementioned terms, loans an in quarter six, in to and All in totaled cards. mainly by to increased pre-financing of of by increase an X.X% greater overdraft the XXXX an XXXX. and activity the other in greater due driven quarter in in increase of foreign an activity in pesos, especially cards. first banking real consumption, are expressed of currency explained contracting credit increase sector the

versus portfolio In the ratio XXXX, explained BBVA This by During second quarter loans quarterly XXXX, well loan which to recorded portfolio in second growth quarter XXXX, average inflation was available portfolio terms, and behavior In managed the from of reached of by a XX.X%, of by book, in in respectively explained higher banking reached the quarter of ago. the quarter the share asset The seen effect as to the reached the This commercial of the in BBVA XXXX, loan and XX.X% of of the as commercial compares were nominal the impacted loss latest total total is mainly information. XXX.XX% is of XX.X% greatest quarter as in retail quarter, commercial X.XX%. the stable XXXX. portfolio Argentina the highly below in in in of their XX.X%. increase positively coverage X.XX% increase first second by quarter quarter risk sector loan versus growth. of beyond the X.XX% X.XX% well decrease the compared to first good during first recorded the second mainly XXXX, year private The growth XXXX. remaining as X.XX% real-term portfolio. the side, system market quarter a X.XX% ratio XXX.XX% loan recorded consolidated NPL Cost XXXX the Argentina's May mainly was was second by a quality allowances. the as quarter of XXXX, X.XX% of the loan of

on reached grew deposits, funding sight of mainly sector X.X% mainly increased On side The deposits as quarter-over-quarter, accounts, quarter-over-quarter which in bank's which of sight falling quarter Slide affected totaled private in X.X%. deposits consolidated year-over-year. XXXX. of share ARSXXX.X increase Quarterly seen X.XX% second billion, increasing XXXX, XX.X%. the increase the by sector deposits, was as quarter private savings non-financial Private an in by of non-financial especially explained deposits market X.X% seven X.X% and pesos second the grew

X.X% expressed private in currency quarter-over-quarter. deposits pesos fell Foreign

of quarter As banks private represent first accounts deposits total and savings XXXX. second transactional XX.X% checking of the considering non-financing deposits quarter of XXXX, the in versus accounts of XX.X% the

remarks. It liquid the by published of by XX.X to quarter the In continues below ARSX.X XXXX. of indicators of as on way the Capital sector ratio effect XXXX, eight. quarter XXXX. XX. bank's on mostly of total reported May to had remains capitalization as instalments other quarter the distributed June of report reached and terms equity. the slightly of central system represents the comprehensive that in This to worth BBVA the bank is of first Argentina one BBVA second healthy Exposure strong to the According the prepared deposit show dividends the Argentina of XXXX, above information. of due at the in XX.X% XX.X, the by June first total from this date public The latest in solvency mentioning XX.X% XXXX, X% schedule established billion X.X% concludes second excluding to income of XX, assets total instruments XXXX our ratio quarter available

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

Operator

session. your And with gentlemen, go from at Ladies and question. Please question-and-answer question the we'll [Operator today Carlos from begin Gomez this first our HSBC. time comes Instructions] ahead

Carlos Gomez

Hello, good questions. taking Two for you of my Thank them. morning.

you do the year to some one as next apart is, some if this reason expenditure what guidance, as tax be expect that's effect? the first year loan loan minimal tax refer we your of The deferred this of Do a demand, more one also line year-on-year, you rest expect your the Thank or and welcome. clarity you [indiscernible] Or positive loan be to should of another flat The can second more for And declining. refers the give positive saw like rate we much. your demand that for beginning more you us taxes next this from you as portfolio to the year? consider actually to might off? was extraordinarily so year

Ines Lanusse

Nice to to Hi Carlos. talk you.

question second regarding by your start loan me let demand. Okay,

net some coming saw mentioned terms side yes, mainly in come. from real you the year-over-year growth commercial have to the Firstly, in already as X% quarter term that we started real growth. But XXX%

are seeing to you're starting retail, little for growing forward more. equation card more basically above the activity XXXX company started on growth to Going because we mainly loan And basement. the a credit see bit demand

fiscal Argentina. these two did lower P&L to between differences asset. valuations Going second these in function a in is, a deferred taxes criterias we income [indiscernible] paid of accounting between the reduced, And the updated line fiscal Taxes tax your and difference question are What the inflation. we result by and in on saw. the on tax were positive that fixed you generating the valuation had taxes,

us another fixed is And Argentina, peers. among it this happened in inflation there this acquired that this some the as XXXX. have already of differently past. acquired was Let that this there some reason past. those background XXXX. in this banks This other Consensus was me during you well. before give has adjusted done from particular assets why assets this was didn't and to implemented after implemented and applies now in peer momentum valuate have Actually, we no thing for quarter action of on Since to gaining believed the happened

what on implied result all fixed basically been effective in we what give rate, was, So the for And positive assets. we would a To you same gave the these P&L. mid color think have did and between actually XXs. you're year some the positive that effect, rate tax if us because country of forward tax would have effective been rate have hadn't this tax for XXXX. going And the going a changing the criteria, high this particular for to should you have effective our the

Carlos Gomez

high this So, tax of see for understand the adjustments should XXs? rate the is in year we one normal the effect second half

Ines Lanusse

it it’s effect, you Yes, the quarter, forward, going fourth one second this full one third in the actually should year have because to but normalized huge positive but going in and be the quarter. be time effects time

Carlos Gomez

this I one only quarter. question is this guess is, my affecting that of

the should third have So fourth normal and taxation. a

Ines Lanusse

in third. Yes. second quarter have the and the for it That you was and normalized second should the

Carlos Gomez

Is you else have in going normal in else we your the there past or we forward? should mean, tax out consider should that on it anything that now litigation anything this you to favor, keep from mind line I taxation? is had there be came the adjustment, here should

Ines Lanusse

else [Indiscernible] you should consider. nothing

Carlos Gomez

to of growth, okay, so All expect an seen you do right. into loan or you next you do And expectation have on recovery -- the not some continue, you growing year? growing expect have it

Ines Lanusse

seeing We There's are more of loan above end till inflation XXXX. going activity growth on. the growing

Carlos Gomez

XXXX? for and Right

Ines Lanusse

to Sorry. Argentina -- XXXX, it's difficult in say

Carlos Gomez

Is really away? far

Ines Lanusse

away. far very it’s Yes,

Carlos Gomez

All so right. you Thank much.

Ines Lanusse

June so You are of the August, now talking of and terms in we about are margin. only at end

Carlos Gomez

much. so you Thank

Ines Lanusse

are You welcome.

Operator

[Operator this at questions. Instructions]. showing I’m additional Ladies and gentlemen, no time,

floor back We will Lanusse conclude to I'd turn remarks. today's like the closing Ms. any for over question-and-answer section. to

Ines Lanusse

you a good Bye. further if let know for us questions. have you day. and Thank Okay. time your Have

Operator

And concludes this today's thank you presentation.

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

Banco BBVA Argentina (BBAR) 24 Aug 222022 Q2 Earnings call transcript