Banco BBVA Argentina S.A. announces Second Quarter 2024 results

Rhea-AI Summary

Banco BBVA Argentina S.A. reported its Q2 2024 results, showing a 178.8% increase in inflation-adjusted net income to $112.9 billion compared to Q1 2024. The bank's ROAA was 4.7% and ROAE was 19.5% for Q2 2024. Operating income decreased by 40.3% quarter-over-quarter to $446.7 billion. Total consolidated financing to the private sector grew by 23.1% in real terms to $3.8 trillion, while total consolidated deposits increased by 2.6% to $5.8 trillion. The non-performing loan ratio was 1.18% with a 165.50% coverage ratio. BBVA Argentina's regulatory capital ratio stood at 25.3%, with a $1.25 trillion excess over minimum requirements.

Positive

• Net income increased 178.8% quarter-over-quarter to $112.9 billion
• ROAA of 4.7% and ROAE of 19.5% in Q2 2024
• Total financing to private sector grew 23.1% in real terms to $3.8 trillion
• Non-performing loan ratio remained low at 1.18% with 165.50% coverage ratio
• Strong regulatory capital ratio of 25.3%, with $1.25 trillion excess over minimum requirements

Negative

• Operating income decreased by 40.3% quarter-over-quarter to $446.7 billion
• Year-over-year net income growth was minimal at 0.1%
• Accumulated net income for H1 2024 was 15.7% lower than H1 2023
• Total consolidated deposits fell 22.2% year-over-year
• Efficiency ratio of 59.9% in Q2 2024 was higher than 56.6% in Q2 2023

News Market Reaction

-6.07%

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-6.07% News Effect

On the day this news was published, BBAR declined 6.07%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

BUENOS AIRES, Argentina, Aug. 21, 2024 /PRNewswire/ -- 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 second quarter (2Q24), ended on June 30, 2024. 

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 2023 and 2024 have been updated according to IAS 29 reporting to reflect the accumulated effect of inflation adjustment for each period up to June 30, 2024.

2Q24 Highlights

• BBVA Argentina's inflation adjusted net income in 2Q24 was $112.9 billion, 178.8% above the $40.5 billion reported on the first quarter of 2024 (1Q24), and 0.1% above than the $112.803 billion reported on the second quarter of 2023 (2Q23). Inflation adjusted accumulated net income for the first 6 months of 2024 was $153.4 billion, 15.7% lower than the accumulated net result of $181.9 billion in the first 6 months of 2023.
• In 2Q24, BBVA Argentina posted an inflation adjusted average return on assets (ROAA) of 4.7% and an inflation adjusted average return on equity (ROAE) of 19.5%. In the first half of 2024, BBVA Argentina posted an inflation adjusted ROAA of 3.0% and an inflation adjusted ROAE of 13.3%.
• Operating income in 2Q24 was $446.7 billion, 40.3% lower than the $748.4 billion recorded in 1Q24 and 4.1% lower than the $465.7 billion recorded in 2Q23. In the first six months of 2024, the accumulated operating income was $1.20 trillion, 44.4% above the $827.9 billion recorded in the same period of 2023.
• In terms of activity, total consolidated financing to the private sector in 2Q24 totaled $3.8 trillion, increasing 23.1% in real terms compared to 1Q24, and contracting 3.5% compared to 2Q23. In the quarter, the variation was driven by an overall growth in all lines, especially in credit cards by 15.3%, in consumer loans by 45.3% and in discounted instruments by 30.1%. BBVA's consolidated market share of private sector loans reached 10.54% as of 2Q24.
• Total consolidated deposits in 2Q24 totaled $5.8 trillion, increasing 2.6% in real terms during the quarter, and falling 22.2% YoY. Quarterly increase was mainly explained by an increment in time deposits and savings accounts, by 27.7% and 5.9% respectively. The Bank's consolidated market share of private deposits reached 7.50% as of 2Q24.
• As of 2Q24, the non-performing loan ratio (NPL) reached 1.18%, with a 165.50% coverage ratio.
• The accumulated efficiency ratio in 2Q24 was 59.9%, improving compared to 1Q24's 65.4%, and above 2Q23's 56.6%.
• As of 2Q24, BBVA Argentina reached a regulatory capital ratio of 25.3%, entailing a $1.25 trillion or 210.30% excess over minimum regulatory requirement. Tier I ratio was 25.3%.
• Total liquid assets represented 69.5% of the Bank's total deposits as of 2Q24.

2Q24 Conference Call
Thursday, August 22, 2024, 12:00 p.m. Buenos Aires time – (11:00 a.m. ET)
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 code: BBVA
Webcast & Replay: click here

To access the full report  English version - Spanish version
To access webcast presentation click here

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

Carmen Morillo Arroyo
Chief Financial Officer
Inés Lanusse
Investor Relations Officer
Belén Fourcade
Investor Relations

investorelations-arg@bbva.com
ir.bbva.com.ar

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SOURCE Banco BBVA Argentina S.A.

FAQ

What was BBVA Argentina's net income for Q2 2024?

BBVA Argentina's inflation-adjusted net income for Q2 2024 was $112.9 billion, representing a 178.8% increase from Q1 2024.

How did BBVA Argentina's (BYMA: BBAR) stock performance compare to its financial results in Q2 2024?

The press release does not provide information on BBVA Argentina's stock performance. It focuses on financial results, showing improved net income but decreased operating income compared to the previous quarter.

What was BBVA Argentina's regulatory capital ratio in Q2 2024?

BBVA Argentina's regulatory capital ratio was 25.3% in Q2 2024, with a $1.25 trillion or 210.30% excess over minimum regulatory requirements.

How did BBVA Argentina's loan portfolio perform in Q2 2024?

BBVA Argentina's total consolidated financing to the private sector grew by 23.1% in real terms compared to Q1 2024, reaching $3.8 trillion. The non-performing loan ratio was 1.18% with a 165.50% coverage ratio.