Banco BBVA Argentina SA Q3 FY2024 earnings call

• Fiscal consolidation and relative exchange rate stability contributed to inflation moderation, with economy showing incipient recovery. BBVA research forecasts 4% GDP decline in 2024 and 6% expansion in 2025.
• Digital channel customer acquisition reached 83% by end of September 2024, retail digital sales units at 92.6% and 73.7% of total sales by monetary value.
• Financial results: Net income ARS99.2 billion, down 21.6% QoQ. Operating income down due to lower interest income, CPI-linked bonds, FX results; offset by lower operating expenses.
• Loan portfolio: Private sector loans up 26.5% QoQ in real terms, growth in discounted instruments, consumer loans, credit cards.
• Deposits: Total deposits up 30.9% QoQ, private nonfinancial sector deposits in pesos and foreign currency saw increases.
• Solvency: Capital ratio 22.2%, capital excess over requirement 172.4%.

In the third quarter of 2024, BBVA Argentina's inflation adjusted net income was ARS99.2 billion, decreasing 21.6% quarter-over-quarter. The net interest income in the third quarter was ARS460.3 billion, falling 39.5% quarter-over-quarter. Net fee income totaled ARS71.1 billion, increasing 7.9% quarter over quarter. Loan loss allowances decreased 11.5% in line with the growth in the performing loan portfolio. Total operating expenses were ARS316.6 billion, decreasing 17.6% quarter-over-quarter in real terms. Private sector loans totaled ARS5.5 trillion, increasing 26.5% quarter-over-quarter in real terms. Total deposits reached ARS8.5 trillion, increasing 30.9% quarter-over-quarter. The capital ratio was 22.2% and capital excess over regulatory requirement was 172.4%.

• BBVA research forecasts 4% GDP decline in 2024, followed by 6% expansion in 2025.
• Expect gradual easing of FX market restrictions during Q4 2024 and Q3 2025, with final decline in PAIS tax in December.

• Forward-looking statements subject to risks and uncertainties as per factors in BBVA Argentina's annual report on Form 20-F.
• Impact of inflation, exchange rate fluctuations, and regulatory changes.

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