Banco BBVA Argentina SA Q4 FY2024 earnings call

• Argentina saw economic recovery with expected 5.5% GDP growth in 2025 and inflation forecast to converge to around 30% or less. - Digital customer acquisition: New customer acquisition through digital channels reached 88% in December 2024 versus 78% a year ago; retail digital sales in units were 91% in 4Q 2024, representing 73.5% of total sales by monetary value. - 4Q 2024 financial results: Lower operating income and higher operating expenses led to a 48.1% fall in operating results; income impacted by higher loan loss allowances, lower net fee and interest income, while expenses were higher due to personnel and operating costs. - FY 2024 financial results: Net income down slightly from 2023; operating income fell 25.8% due to lower net interest income and foreign exchange/gold gains; operating expenses decreased 3.9% in real terms; efficiency ratio increased due to lower income.

In the fourth quarter of 2024, BBVA Argentina's inflation adjusted net income was ARS64.7 billion, decreasing 39.6% quarter over quarter, with a quarterly ROE of 9.5% and ROA of 1.7%. For the fiscal year 2024, net income was ARS357.7 billion, 0.4% lower than 2023. Net interest income totaled ARS2.9 trillion, falling 17.3% year over year. Loans to the private sector grew significantly: private sector loans in the fourth quarter of 2024 totaled ARS7.6 trillion, increasing 75% year over year. Total deposits reached ARS9.9 trillion, increasing 7.8% quarter over quarter. Capital ratio was 19.5% in the fourth quarter of 2024.

• Expect private loans to grow around 60%-65% in real terms in 2025, with the system loans growing 40%-45% in real terms. - Forecast inflation at around 30% in 2025. - Monetary policy rate expected to end 2025 at 24%, FX rate around ARS1,300 at official rate, GDP growth 5.5% in 2025. - Dividend plan: Expect to pay a lower dividend in 2025 than the previous year, pending regulation.

• Uncertainty associated with the evolution of exchange rate and the pace of removal of exchange regulations.

Q: What are your expectations for growth in loans, deposits, and profitability for 2025?

A: Expect private loans to grow around 60%-65% in real terms, system loans 40%-45% in real terms; deposits growing; profitability expectations on ROE a bit lower.

Q: Can you address asset quality?

A: NPLs are very low for BBVA, at 1.13%, with the system's NPL around 1.56% in December.

Q: What do you expect for funding and securities as a percentage of assets?

A: Deposits growing (25% real growth in 2024); see plenty of space for corporate bonds funding; no need for additional capital at least until 2026; securities percentage not specified as a long-term level but strategy focused on commercial and retail growth.