Earnings call transcript: BBVA Argentina misses Q2 2025 EPS forecasts

BBVA Argentina, with a market capitalization of $2.96 billion, reported its second-quarter earnings for 2025, missing analyst expectations with an earnings per share (EPS) of $0.2083, significantly below the forecasted $0.37. This unexpected result led to a 5.22% drop in the company’s stock price, which closed at $14.93 and further declined in premarket trading. According to InvestingPro analysis, the stock appears overvalued at current levels. The company’s revenue for the quarter was $524.41 million. Despite the earnings miss, BBVA Argentina continues to focus on digital transformation and market share growth.

Key Takeaways

• BBVA Argentina’s Q2 2025 EPS was 43.7% below expectations.
• Stock price fell by 5.22% after the earnings announcement.
• Digital customer acquisition rose to 84.5%.
• Loan portfolio grew by 43% year-to-date.
• Market share in private loans increased to 11.61%.

Company Performance

BBVA Argentina experienced a challenging quarter with a notable decline in net income by 31.1% compared to the previous quarter. InvestingPro data shows the bank’s return on equity at 16% and return on assets at 3.16% for the last twelve months, though recent performance has weakened. Two key InvestingPro Tips highlight that the company is quickly burning through cash and suffers from weak gross profit margins, with 10 more exclusive insights available to subscribers. Despite these setbacks, the bank expanded its loan portfolio by 43% year-to-date, outpacing the system growth of 39%, and increased its market share in private loans.

Financial Highlights

• Revenue: $524.41 million
• Net interest income: ARS 591.8 billion, up 3.1% from the previous quarter
• Net fee income: ARS 94.1 billion, down 11.1% from the previous quarter
• Total operating expenses: ARS 483.1 billion, decreased by 7.5% from the previous quarter

Earnings vs. Forecast

BBVA Argentina’s EPS of $0.2083 fell short of the $0.37 forecast, marking a significant surprise of -43.7%. This miss contrasts with the company’s previous performance trends, where it had generally met or exceeded expectations.

Market Reaction

Following the earnings announcement, BBVA Argentina’s stock declined by 5.22% to $14.93, with further losses in premarket trading. The stock has been trading between a 52-week high of $25.01 and a low of $9.19, indicating volatility in response to the earnings miss. Despite recent volatility, InvestingPro data reveals a strong 48.76% return over the past year, though the stock has fallen 22.73% in the last six months. For comprehensive analysis and detailed valuation metrics, investors can access the full Pro Research Report, available exclusively to InvestingPro subscribers.

Outlook & Guidance

Looking ahead, BBVA Argentina aims for 50% real growth in loans for 2025 and expects ROE to remain in the low double digits. The bank also anticipates deposit growth of 30-35% and plans to maintain its capital ratio around 17% by year-end. With an overall Financial Health Score of 2.36 (rated as "FAIR") by InvestingPro, the bank shows moderate stability despite current challenges. Access the complete financial health analysis and over 30 key metrics through the comprehensive Pro Research Report, one of 1,400+ detailed company analyses available to InvestingPro subscribers.

Executive Commentary

"We maintain our strategy of gaining market share," stated Carmen Morillo, CFO. The bank is committed to its digital transformation efforts, as evidenced by the increase in digital customer acquisition and retail digital sales.

Risks and Challenges

• Economic instability in Argentina could impact financial performance.
• High inflation rates may affect loan demand and consumer spending.
• Regulatory changes could pose challenges to operational efficiency.
• Currency fluctuations may impact profitability and revenue.

Q&A

During the earnings call, analysts raised concerns about a potential slowdown in consumer loans and the impact of high interest rates on loan demand. Executives addressed these issues, emphasizing continued credit growth and market share maintenance.

Full transcript - BBVA Banco Frances SA ADR (BBAR) Q2 2025:

Conference Moderator, BBVA: Good morning, everyone, and welcome to BBVA’s Argentina Second Quarter twenty twenty five Results Conference Call. Today with us are Mr. Diego Cesarini, Head of ALM and Investor Relations Mrs. Balan Forcade, Investor Relations Manager and Mrs. Carmen Mauricio Arroyo, CFO, who will be available for the Q and A section.

This presentation and the second quarter twenty twenty five earnings release are available on BBVA’s Investor Relations website at ir.bbva.com.ar and will also be available for download in the chat. First of all, let me point out that some of the statements made during this conference call may be forward looking statements within the meaning of the Safe Harbor provision found in Section 27A of the Securities Act of 1923 under U. S. Federal securities law. These forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in such forward looking statements.

Additional information concerning these factors are contained in the BBVA Argentina Annual Report on Form 20 F for the fiscal year of 2024, filled with the U. S. Securities and Exchange Commission. During the conference presentation, all microphones will be disabled. At this time, we are going to open for the Q and A section.

And if you have questions, please press the raise hand button. You then receive a request to activate your microphone. Please activate it and pick up your handset to provide optimum sound quality when posing your question. I will now turn the call over to Mrs. Belen Forcade.

Please go ahead.

Belen Forcade, Investor Relations Manager, BBVA Argentina: Good morning and thank you all for joining us today. The macroeconomic normalization process has continued in recent months. The sustained fiscal balance along with a tight monetary policy and the gradual relaxation of foreign exchange restrictions have been key factors in anchoring expectations and solidifying a significant disinflationary trend since 2024, which has continued during the 2025. In this context of stabilization, despite some recent signs of a slowdown in the pace of economic recovery, GDP growth is projected to be 5.5% year over year in 2025 according to VBA research. This not only reverses the 1.7% drop in 2024, but also surpasses previous highs reached in the past years.

As a result of these improvements, our base case scenario contemplates that the disinflationary convergence will strengthen with an year over year inflation rate that will be close to 28% by the 2025. Within the framework of a new agreement with the International Monetary Fund during the second quarter of the year on 04/14/2025, the lifting of a large part of the remaining exchange controls was announced, along with the implementation of our wideband floating exchange rate scheme. This has positively impacted our results with increased foreign currency trading activity and gains from gold and foreign currency valuation. These regulatory changes will also boost cross border credit flows and investments in the country. During the 2025, BB Argentina accelerated its growth in the credit segment, consistently outperforming the market.

The bank’s market share of total private loans rose 107 bps from 10.54% in June 2024 to 11.61% in June 2025. As of March 2025, BB Argentina was positioned third in the ranking of local privately owned banks in terms of consolidated private loans. As per Central Bank information, our peso loan portfolio expanded by 43% year to date, a pace faster than the system 39% and the six month accumulated inflation level, which reached 15.1% in June 2025. As for total private deposits, as per central bank information, the system grew 17% in the first six months of 2025, while the bank grew 32%, surpassing the level of inflation in both cases. BEV Argentina’s consolidated market share of total private deposits was 9.64 percent, two fifteen bps higher than the 7.5% of the previous year.

According to the latest quarterly data available from the Central Bank, as of March 2025, BB Argentina remained in the third place in the ranking of local privately owned banks in terms of consolidated private sector deposits. Moving to Slide two and three, I will now comment on the bank’s second quarter twenty twenty five financial results. PV Argentina’s inflation adjusted net income in the 2025 was ARS 59,600,000,000.0, decreasing 31.1 quarter over quarter. This implied a quarterly ROE of 7.6% and a quarterly ROA of 1.2%. We are leveraged by active pricing management, careful portfolio management and strict cost control, which has allowed us to navigate the context of higher provisions and nonperforming loans while driving activity growth.

The decrease in quarterly operating results was mainly explained by lower operating income. Lower income was mainly due to, one, a drop in the line of net income from write down of assets at amortized cost through OCI explained by the voluntary exchange of bonds promoted by the government in January 2025, which reflected a positive result from the write down of securities and two, a deterioration in loan loss allowances. These were positively offset by better income in foreign exchange and gold gains, explained by an increase in activity after the partial lift of FX controls on 04/14/2025. Net income from the net monetary position was 30% lower quarter over quarter, thanks to a lower quarterly inflation of 6% versus 8.6% in the 2025. Turning into P and L lines in Slide three.

Net interest income was ARS 5 and 91,800,000,000.0, increasing 3.1% quarter over quarter. In the 2025, interest income increased more than interest expenses in monetary terms. The former increased due to an improvement in income from loans and from adjustments. Expenses increased mainly due to higher deposit costs, in particular due to time deposits. Interests from time deposits explained 73.4% of interest expenses versus 74.4% the previous quarter.

Net fee income as of the 2025 totaled ARS 94,100,000,000.0, decreasing 11.1% quarter over quarter. Fee income totaled ARS 176,500,000,000.0, decreasing 7.8% quarter over quarter. Decreasing income is mainly explained by credit card fees, considering a revision of provisions linked to the Michaas Bebe Uea loyalty program in the 2025. This was partially impacted by the extraordinary results reported in the 2025 in a context of the program sustained state and the recalculation of provisions. It is important to note that the bank is actively committed to generating efficiencies within the fees framework.

The growth of fees linked to liabilities is particularly noteworthy, especially due to improvements in pricing of account maintenance and bundles. On the side of fee expenses, this totaled 82,500,000,000.0, decreasing 3.8% quarter over quarter. This is mainly explained by lower expenses related to payroll promotions, followed by lower fees expenses for new channels. In the 2025, loan loss allowances increased 42.3%, explained by the real growth of the loan book in the quarter, which implied higher provisioning as well as the publicly known deterioration of NPLs, both for BBVA and for the system, which I will comment on later. During the 2025, total operating expenses were ARS 4 and 83,100,000,000.0, decreasing 7.5% quarter over quarter, of which 29% were personnel benefit costs.

Personnel benefits increased by 10.4% quarter over quarter, but fell by 7.3% year over year. While wages kept pace with inflation, there was an increase in the payroll as well as social security withholdings and collections and other short term personal benefits. Administrative expenses dropped 4.8% quarter over quarter. The quarterly savings are mainly due to proactive efficiency measures in: one, armored transportation services two, outsourced administrative expenses three, advertising and four, commercial reports. Additionally, the decrease is also due to the lower provisions made in the first quarter of the year, primarily related to elimination of the PAIS tax.

The quarterly efficiency ratio as of the 2025 was 56.5%, stable versus the 56.3% reported in the 2025. Moving on to Slide four. Private sector loans as of the 2025 totaled ARS 11,300,000,000,000.0, increasing 15.7% quarter over quarter. Loans to the private sector in pesos increased 13.9% in the 2025. For the quarter, real growth occurred across all lines, specifically with one, a 34.6% increase in overdrafts followed by two, a 26.9% increase in other loans three, an 8.4% rise in credit cards, and four, an 11.6% increase in consumer loans.

In all cases, the increase is driven by the genuine portfolio growth, leveraged by the relative stability of market interest rates during the second quarter and increased commercial efforts. For other loans in particular, the significant progress is linked to a floor plan business, which is supporting the higher activity in the automotive sector. Loans to the private sector denominated in foreign currency increased 23.6% quarter over quarter. Quarter increase is mainly explained by a 23.5% growth in financing and prefinancing of exports. These loans grew in a context where foreign exchange controls were expectations of exchange rate stability became stronger, which promoted activity in foreign currency.

During the quarter, the commercial portfolio grew 17.7% and the retail portfolio increased 13.1%. The commercial portfolio represents 58.1% of the total portfolio from 54.1% a year ago. BBVA Argentina’s consolidated market share of private sector loans reached 11.61% as of the 2025, improving from 10.54% a year ago. Regarding asset quality, BB Argentina’s nonperforming loan ratio on private loans reached 2.28% in June 2025, a figure that remains below the system average, 2.55% as of May 2025, the latest available data. This was due to an increase in the nonperforming retail portfolio, reflecting a deterioration in nonperforming credit card and consumer loans, which aligns with the overall systemic trend.

Commercial nonperforming loans, however, showed very good performance decreasing from 0.14 to 0.10%. While some deterioration has been observed in a scenario of significant credit expansion, primarily concentrated in the retail segment, this increase starts from historically low levels. The current non performing loan levels continue to be below the average of the local financial system over the last twenty years. BBVA is distinguished by consistently having nonperforming loan ratios below the sector average, which reflects the quality of its credit risk management and its prudent approach to portfolio origination. As we can see on Slide five, as of the 2025, total gross loans and other financing over deposit ratio was 88%, above the 85% recorded in the 2025 and above the 78% in the 2024.

Participation of total loans over assets is 58% versus 56% in the 2025 and fifty one percent in the 2024, evidencing a lower exposure to the public sector in line with the real growth of credit demand. The transition of the business from securities to loans in the past years denoted in the loans over asset ratio and the loss to deposit ratio has had a toll on NIMs, which reached up to 50% in 2023 and is now 19.1%. If we consider the result of the net monetary position in the calculation of NIMs, we can see that the adjusted NIM has remained relatively stable since the 2024 and even increased in the 2025, demonstrating the stabilization and improvement of spreads. On the funding side, as of the 2025, total deposits reached 13,000,000,000,000, increasing 12% quarter over quarter. The bank’s consolidated market share of private deposits as of the 2025 reached 9.64% compared to the 7.5% a year ago.

Private nonfinancial sector deposits in pesos totaled ARS 8,700,000,000,000.0, increasing 11% quarter over quarter. The quarterly change is explained by a 34.8% increase in time deposits, which was negatively offset by a 64.1% drop in investment accounts. Private nonfinancial sector deposits in foreign currency expressed in pesos increased by 14.1% quarter over quarter and 94.7% year over year. This is mainly due to an 11.1% increase in savings accounts, followed by a 55.1% increase in time deposits. Foreign currency deposits expressed in U.

S. Dollars increased by 8.8%. BB Argentina continues to show strong solvency indicators on the 2025. Capital ratio reached 18.4%. The excess capital integration over the regulatory requirement was COP 1,400,000,000,000.0 or COP 123.9%.

The quarter over quarter drop was driven by a rise in activity, which increased the risk weighted assets requirement. Additionally, a decline in equity is probably explained by a dividend distribution announced at the General Shareholders Meeting in April. The 2025 total public sector exposure, excluding Central Bank, totaled 3,000,000,000,000, increasing 3.1% quarter over quarter. The quarterly increase is due to a specific position in LEPIS at the end of the quarter, an instrument that was later removed from the market by the treasury in July. Exposure to the public sector, excluding Central Bank exposure, represents 15.8% of total assets, below the 17.1% in the 2025, in line with the real loan growth demand.

In the quarter, liquid assets were ARS 6,400,000,000,000.0, increasing 14.7% quarter over quarter and representing 48.7% of total deposits versus 47.6% the previous quarter. Liquidity in pesos increased from 43.8% in the 2025 to 45.4% in the 2025, while liquidity in U. S. Dollars remained stable around 55.5%. In line with our commitment to generating value for our shareholders, the bank has announced the distribution of cash or in kind dividends corresponding to the 2024 fiscal year for the sum of ARS 89,400,000,000.0 expressed in homogeneous currency as of 12/31/2024.

This amount will be adjusted by the consumer price index on the date of each of the 10 payments to be made with the first two payments already successfully completed. Moving on to other business dynamics, as you can see on Slide seven of our webcast presentation, our service offering has evolved in such a way that by the June 2025, new customer acquisition through digital channels reached 84.5% versus 83.5% a year ago. Retail digital sales measured in units reached 95% in the 2025 and represent 90% of the bank’s total sales measured in monetary value. This concludes our prepared remarks. We will now take your questions.

Operator, please open the line for questions.

Conference Moderator, BBVA: Thank you. We’re now going to start the Q and A session. Our first question comes from Brian Flores from Citi. Please Mr. Flores, your microphone is open.

Brian Flores, Analyst, Citi: Team. Thank you for the opportunity to ask questions. I have two questions. The first one is if you have any updates on guidance. I think it would be very important.

And then wanted to ask you a bit on on the sustainability of your increasing market share. I think you’re proving, you know, very healthy risk appetite. You kept the pace very, very strong. So just wanted to to check with you if how sustainable this pace of growth is. And also if you’re going to be focusing a bit more on any particular segment, I think it would be very interesting.

Thank you.

Carmen Morillo, CFO, BBVA Argentina: Hi, Brian. Good morning. This is Carmen Morillo. Yeah. Thank you for your questions.

So related to to in fact, in to both of them, no, because I I would like to start saying that we we we see a scenario a bit more complicated in terms of NPLs, as you all know. But we believe the levels are are so we are comfortable in these levels, and and we remain with our strategy of credit growth. In that sense, we believe this year is gonna be so we maintain our our guidance around 50 growth for the bank in real terms. We believe it it’s possible scenario. We will we will have to see what happens in the following months prior elections, but we we we already think that it’s feasible.

In terms of other factors in in guidance related to profitability. ROEs will also be around low low double digits. And in terms of liquidity, we are also comfortable with the the growth of our deposits. We we also maintain our guidance there around this 35% 30% to 35% growth in deposits. Term deposits are behaving really, really good in also in retail where we we didn’t see so much growth in the first quarter, but but now we are we are focusing on this growth, and it’s so it’s a good lever in our p and l.

And yeah. So in terms of capital ratio, we are also comfortable. We believe to be finishing the year around 17% from this 18.4% we are finishing the the semester. This is due due to the dividend payment and also the growth of our credit activity. So we believe to to end the year around these levels.

Conference Moderator, BBVA: Yes.

Carmen Morillo, CFO, BBVA Argentina: That I hope this answers your question.

Brian Flores, Analyst, Citi: No. That is perfect, Carmen. Thank you for the answer. And then on the if I understand correctly, you will slow down a bit in terms of growth, but perhaps you’re gonna be I mean, the whole system is going to be decelerating. So is my understanding correct in terms of you will continue to gain market share or at least sustain this strategy?

Carmen Morillo, CFO, BBVA Argentina: That that’s correct, Ryan. So what we see what we are waiting to to see what the system is gonna be able to grow. So in in our case, we we maintain our strategy of gaining market share. We are confident on on on that. And and yeah.

So the the point is what what is the system gonna gonna grow? So we have liquidity. We have capital. We we we have a strategy, and and and if we if the demand is there, we are gonna be there.

Brian Flores, Analyst, Citi: Perfect. Super clear. Thank you.

Conference Moderator, BBVA: Our next question comes from Pedro Leduc from Itau BBA. Please Mr. Leduc, your microphone is open.

Pedro Leduc, Analyst, Itau BBA: Hi guys. Thank you so much for taking my question. Two quick ones, please. Still in respect to loan book growth, could we see perhaps a shift towards more corporate than retail? It seems like in retail that NPLs are stinging a little bit more, so you still make the 50s, but in a different shape than we’re currently seeing.

That’s the first. And then the second, if you could try help us reconcile a bit how you move from the current ROEs towards double digits by year end. And I’m specifically looking at the the provision coverage for bad credit, a 115% looks historically low, especially with the shape of NPLs that we’re seeing. So I’m having a a hard time reconciling how you can improve profitability, growing loans with probably a little bit higher NPLs and with low coverage. I mean, the only answer I can think about is maybe NII is accelerating a lot in the second half.

But if you could help us bridge this, that would be great. Thank you.

Carmen Morillo, CFO, BBVA Argentina: Okay. Good morning, Pedro. Thank you for your questions. Related to the first one, yeah, so it’s true that we are the so this the whole system, not in our case again. No?

The the strategy is is remaining the same, talking about retail and and also commercial. But what we see is that this this acceleration in in consumer loans due to to higher NPLs in the whole system. So we we think we we will grow less in in this portfolio. But the growth in credit cards is very sorry. It’s still high.

So maybe less consumer loans, a bit more credit cards. And, of course, SMEs and and and commercial and and CIB companies are the ones to to maintain the group man maintaining the growth. Maybe due to to the volatility in interest rates and and higher levels is making the the short term credit slow down a bit, but it has to be something, unusual. And and and we hope in in a couple of months, the the the the volatility is over, and and we can see again a a good dynamic in terms of commercial and CRE credits. So so you can see a bit of change in the mix of growth, but it shouldn’t be that different, I would say.

And in terms of the path to go from ROEs in this semester compared to to our guidance. We are not that far if you see the the the accumulated ROE for in the semester. And and maybe the considering the the higher NPLs, what we what we see is a very good performance in fees and commissions and in in expenses in expenses. That’s one one of the key messages I I would highlight. And, also, the NIM is behaving in a in a in a very stable way.

Considering this volatility I was talking about, maybe you can see some negative impact due to the the the quicker deposit and the equation of the of the interest rates than the the credit ones. But but in our case, our our balance sheet is is quite well matched between short term Liabilities. Liabilities and and credits. So in in that sense, you you shouldn’t be considering a big impact there. And it has to be something, like, very limited in time.

So maybe a month, and and then you can see a stable new evolution. So that’s what we we see for for this five five or six more months of the year.

Pedro Leduc, Analyst, Itau BBA: Our

Conference Moderator, BBVA: next question comes from Mario Estracea from Itau.

Mario Estracea, Analyst, Itau: Everyone, thank you. Thank you for for taking my question. My question is related to the to this here to this very high real rates that we’ve seen in in in in the last couple of months, I would say. So it seems to be, you know, sort of a struggle between between the banks and the treasury. The treasury wants to, you know, take more liquidity out of the system, and and and and and banks are, you know, like, doing so, but in exchange of of real high real real high rates.

Right? So the struggle has resulted in in in in in higher rates. So for me, it’s like, what what are the drivers that, you know, that apparently are making the banks, you know, ask for these higher premiums in order to to you know, in every auction of the treasury? And and and and what impacts have you seen in in in loan demand? Right?

Because, you know, this I mean, we we we saw the activity data yesterday that was it came a little bit below consensus. So it seems to me, no, it’s related to to the higher rates. Or if it’s not, I mean, please correct me. So so I guess that that would be the two questions. Right?

I mean, what are the drivers for for for the bands to to add for more premiums in in in in the options, and what are the impacts on the on the and the credit demand going forward? Right?

Diego Cesarini, Head of ALM and Investor Relations, BBVA Argentina: Hi, Mario. This is Diego Cesarini. How are you? Thanks for the question. I would say that, you know, the the the government is worried about inflation.

We we all know that it’s a main priority for them to bring it down as soon as possible. And in the previous moments before the election, I think that it’s it’s crucial for them to to keep effects stable in order not to to affect inflation. In that sense, what they have been trying to to to do is is is making yields, making interest rates higher in order to keep effects as quiet as possible. It is not that we are asking for for more yield in every in every auction. It’s simply that once that they raise the the levels of the the reserve requirements that we have to comply with, of course, we we need we need to to to to to collect part of our our our bonds in order to comply with those requirements.

They are making the system work with the the the the very scarce levels of of short term liquidity because banks are very liquid. We we as an example, we have 50% of of liquid assets compared with deposits, but we are very liquid. But we what what we are now is is working with no show short term instruments. We we don’t have a one day instrument that, we had a couple of months ago. So we we need to be very, very tidy in how we manage our daily daily balances on on our accounts.

That is a little difficult to do from a technical point of view. That is bringing a lit some troubles, some problems in in in in in in the daily operations. But as Carmen said, this is not something that this is something that we see as as as as provisional. We we think in a couple of months, things will turn back to to normal. Regarding loan demand, yes, it these levels of interest rates, of course, are are affecting loan demand on on both segments, but mainly on on the on on the on the commercial side.

But, again, we are not far from complying with our yearly target of 50% loan growth as Carmen that Carmen mentioned before. And, again, we think that this is transitory. Okay.

Mario Estracea, Analyst, Itau: That’s that’s very helpful. Thank you. If I may, a a quick follow-up. How are your your your your expectation for fees? Because I saw it it went down a little bit this quarter.

So and and and and I and I understand that that’s, you know, some a business that you want to to to actually strength going forward. So so what what happened this quarter, and how do you see evolving the in in in in the next period? Hi.

Carmen Morillo, CFO, BBVA Argentina: This is Carmen again. Yeah. So what so if you if you take a look on on the year over year growth, you can see a 20% increase in in fees and commissions. Then when when you take a look month quarter over quarter, there you have some nonrecurrent impacts in the first quarter that explains why we we have a drop in in the second quarter. But I think the the the most important thing is is is to look not not only against last quarter, but how are we gonna perform in the in the year end.

And and the and the point is that we are working hard on fees and commissions. That’s why I mentioned that point because we know we we have a gap of when we compare ourselves to other peers or or the the banking system. And we are we we have a plan there, and and that’s the reason why, I think this is one of the levers, to to to have a a better performance in in that line.

Mario Estracea, Analyst, Itau: Yes, super clear. Thank you. Thank you both.

Carmen Morillo, CFO, BBVA Argentina: Thank you.

Conference Moderator, BBVA: Our next question comes from Brian Flores from Citi. Please, Mr. Brian, your microphone is open.

Brian Flores, Analyst, Citi: Hi, team. Thank you for the opportunity to make a follow-up here on Mario’s question. So I think I understood the effect on credit demand. But I just wanted to understand if this is net positive or negative for treasury results. Because I know, as you mentioned, it’s short term, but it should end and should have an impact for the full quarter, no, maybe more than everyone was expecting.

So just wanted to to check with you if this is net positive or negative vis a vis what we have maybe, I don’t know, three months ago, you know, in terms of the treasury results. This impacting as a benefit, or is it neutral? Just any color here, I think, would be great.

Carmen Morillo, CFO, BBVA Argentina: I’m not sure if I got your question, Ryan. So you’re talking about treasury’s analog results?

Brian Flores, Analyst, Citi: No. I’m not sure. I’m I I think Diego mentioned that you’re managing liquidity and participating in auctions. So, of course, the rates sometimes are very high and they could at some point be a benefit. I know the activity here on this segment from your treasury department should have an impact on results.

So just that is the question.

Diego Cesarini, Head of ALM and Investor Relations, BBVA Argentina: Okay. Let let me take it, Carmen. I would say that in terms of of as Carmen mentioned before, in terms of short term results, it’s neutral to slightly negative because we we have a a similar amount of short term liabilities. There, we include, of course, our deposits, our time deposits, and our short term site accounts that pay interest. And on on the asset sites, we have loans and, of course, bonds.

When you amount those those two amounts, they they they are very similar, and and and they are repricing. Maybe maybe that liabilities reprice a little faster because, well, of course, site accounts are on a daily basis and and time time deposits. You know that are most of them, thirty day deposits. And when you consider our short term loans and and short term securities, maybe they take between a month. We have one day loans, so, of course, they take between one day and probably two or three months.

So in the in the very short term, maybe it’s slightly negative, but in I I would say that in the second months, that the the the the the the effect is is already offset. Regarding our bond positions, you I would divide it in three components. The the first one are these fixed rate bonds. Our portfolio is very, very short term. Our average maturity is below forty, forty five days.

So there is no impact. We reprice almost immediately. We do not have a significant position on the long term leg ups, which are fixed rates. Then one third of our portfolio adjust on a daily basis because it’s are those these dual bonds, which adjust by the the Tamar interest rates, which is the interest rate that we pay for wholesale time deposits. Just as an example, that rate was around thirty percent one month and a half ago and yesterday closed at 60%.

So one third of our portfolio reprices every day regarding what happens with the price in the in the secondary market. But we our valuation is is it does not show that. That that that goes to the other comprehensive income, the the difference. And the other third of our position is our inflation adjustment adjusted portfolio, which, of course, if inflation do do not go up as as as interest rates, which is the the scenario that we we are waiting, we we we expect inflation to remain very stable. So on that position, yes, we we are we are having an we we are not getting there the the benefit of of of interest rates going going up.

But in general terms, we have a a smaller inflation adjusted position that the the the financial system as a whole. So we are we are comfortable with with the the situation. It will be a very, very short impact probably that we will see it in August. But by September, we we are expecting to to have a a neutral effect.

Brian Flores, Analyst, Citi: No. Very helpful, Diego. Thank you.

Diego Cesarini, Head of ALM and Investor Relations, BBVA Argentina: Welcome.

Conference Moderator, BBVA: Just as a reminder, if you wish to ask a question, please use the raise hand button. Wait while I’ll pull for questions. Our next question comes from Martin Argento from Delta Asset Management. Please please, mister Argento, activate your microphone and ask your question.

Martin Argento, Analyst, Delta Asset Management: Oh, sorry. Do you hear me, dad?

Conference Moderator, BBVA: Yeah. Now we can hear you.

Martin Argento, Analyst, Delta Asset Management: Yes. Okay. Well, following the removal of FX controls in April 2025, could you comment on how relevant FX trading and dollar related transactions could become for BVA’s earning going forward? Should we think that about this as material or recurring revenue source or more as an opportunistic line that may fluctuate with market conditions?

Carmen Morillo, CFO, BBVA Argentina: Hi, Martin. Related to to FX and and exchange rate, so the the scenario we are managing as a as a bank for this year is that if the fiscal surplus inflation, commercial balance sheet, and and and all the macro tools that the government is are using, and and and we believe they they they will continue in this trend. So if if all of these goes in the in in this direction in the following months, we are not expecting the the the rate to to to have a a quite differential evolution. So I would say that, you know, that in our balance sheet, the position in dollar currency is not so significant. Maybe 15 to to 20% of our balance sheet is dollar color currency, we are not expecting something significant coming from from this position together with a year end FX rate around 1,400.

Martin Argento, Analyst, Delta Asset Management: Okay. Thanks.

Conference Moderator, BBVA: Just as a reminder, if you wish to ask a question, please use the raise hand button. Wait while we pull for questions. Thank you. This does concludes the Q and A session. I will now hand the floor back to BBVA’s Argentina team for any closing remarks.

Please go ahead.

Belen Forcade, Investor Relations Manager, BBVA Argentina: Okay. Thank you all for hearing us today. If you have any further questions, please do not hesitate to get in contact with us. Have a very nice day.

Conference Moderator, BBVA: This does conclude today’s presentation. We appreciate your participation and wish you a very good day.

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