Banco BBVA Argentina S.A. Q2 FY2025 earnings call

• Macroeconomic normalization continued with fiscal balance, tight monetary policy, and relaxation of foreign exchange restrictions driving disinflation. GDP growth projected at 5.5% in 2025.
• New IMF agreement in Q2 2025 led to lifting of exchange controls and wide-band floating exchange rate scheme, boosting foreign currency trading and credit growth.
• BBVA Argentina accelerated credit growth, with market share of total private loans rising to 11.61% in June 2025. Peso loan portfolio expanded 43% YTD, private deposits grew 32% YTD.
• Second quarter 2025 net income ARS 59.6 billion, down 31.1% QoQ. Net interest income up 3.1% QoQ. Net fee income down 11.1% QoQ. Loan loss allowances up 42.3% due to loan book growth and NPL deterioration.
• Operating expenses down 7.5% QoQ. Efficiency ratio 56.5%, stable. Capital ratio 18.4%. Dividend of ARS 89.4 billion announced for 2024 fiscal year.
• Digital channel new customer acquisition at 84.5% in June 2025, retail digital sales at 95% Q2 2025.

Argentina's inflation adjusted net income in the second quarter of 2025 was ARS 59.6 billion, decreasing 31.1% quarter-over-quarter. Net interest income was ARS 591.8 billion, increasing 3.1% quarter-over-quarter. Net fee income totaled ARS 94.1 billion, decreasing 11.1% quarter-over-quarter. Private sector loans totaled ARS 11.3 trillion, increasing 15.7% quarter-over-quarter. Total deposits reached ARS 17 trillion, increasing 12% quarter-over-quarter. Capital ratio reached 18.4%. The bank's market share of total private loans rose 107 bps from 10.54% in June 2024 to 11.61% in June 2025. Consolidated market share of total private deposits was 9.64%, 215 higher than the previous year.

• Maintain 50% real loan growth for the year.
• ROE around low double digits.
• Deposit growth guidance around 30%-35%.
• Capital ratio expected to end the year around 17% due to dividend payment and credit activity growth.

• Macroeconomic uncertainties including potential slowdown in economic recovery.
• Inflation risks impacting loan quality and profitability.
• Regulatory changes and their impact on foreign currency trading and credit growth.
• NPL deterioration in retail segment posing risks to loan loss allowances.

Q: Any updates on guidance?

A: Maintain 50% real loan growth, ROE around low double digits, 30%-35% deposit growth, capital ratio expected to end year around 17%.

Q: Sustainability of market share growth?

A: Maintain strategy of trading market share, confident in liquidity, capital, and strategy.

Q: Shift in loan book growth towards corporate?

A: Possible shift with less consumer loans, more credit cards, SMEs, commercial, and CRE; volatility in interest rates is transitory.

Q: Impact of high real rates on loan demand and treasury results?

A: High rates affecting loan demand, short-term impact on treasury results is neutral to slightly negative.

Q: Relevance of FX trading to earnings?

A: FX position not significant, not expecting material recurring revenue from FX, year-end FX rate around ARS 1,400.