Banco BBVA Argentina S.A. Q3 FY2025 earnings call

• BBVA Argentina sustained its growth strategy despite volatile interest rates and political uncertainty. • Maintained operational efficiency through careful fee administration and expense control. • Credit to the private sector grew 6.7%, deposits grew 10.2%. • NPL ratio was below system average, but high rates affected margins. • Leveraged active pricing, portfolio management, and expense control to navigate challenges.

In the third quarter of 2025, BBVA Argentina's private sector loans totaled ARS 12.8 trillion, growing 6.7% in real terms quarter-over-quarter, with a consolidated market share of 11.39%. Deposits saw a real-term increase of 10.2%, reaching ARS 15.4 trillion, and the market share rose to 10.09%. The nonperforming loan (NPL) ratio on private loans was 3.28%, below the system average. The capital ratio stood at 16.7%, impacted by sovereign debt valuation, and the liquidity ratio was 44.3%, lower than the prior quarter.

• Expect real loan growth of 45% to 50% year-over-year. • Deposits expected to grow in the range of 30% to 35% in real terms. • ROE expected to be in the high single digits. • Capital ratio expected to finish 2025 near 17%.

• Political uncertainty leading to volatile financial variables. • Sharp rise in interest rates affecting margins and delinquency. • Regulatory changes in reserve requirements impacting liquidity and operations. • Deterioration of retail NPLs and potential slowdown in retail loan growth.

Q: Reiterating guidance on loan growth, deposits, ROE, and capital ratio?

A: Maintaining 45%-50% real loan growth, deposits around 30%-35% growth, ROE in high single digits, and capital ratio near 17% by year-end.

Q: How much of loan growth is genuine and distinction between retail and commercial?

A: Growth is genuine; retail loan growth is flat due to NPLs, while growth comes from dollar-denominated loans and commercial segments.

Q: Update on reserve requirements and impact on NIM?

A: Central Bank changed reserve requirements, improving liquidity; NIM expected to improve in Q4 and stabilize in 2026 due to pricing power and demand for loans.

Q: Asset quality outlook and capital level?

A: NPLs expected to deteriorate in Q4, but retail NPLs may stabilize in 2026; capital ratio expected to be around 17% by end of 2025 and comfortable for future years.