Banco BBVA Argentina (BBAR) Q1 2025 earnings summary

Executive summary

• Inflation-adjusted net income in 1Q25 was ARS 81.6 billion, up 16.2% quarter-over-quarter and 53.2% year-over-year, with ROE at 11.4% and ROA at 2.0%.

• Digital transformation advanced, with 86% of retail sales through digital channels and digital customer acquisition at 86%.

• Private sector loans grew 11.2% quarter-over-quarter and 123% year-over-year, with market share rising to 11.28%.

• Deposits increased 2% quarter-over-quarter and 47% year-over-year, with private deposit market share at 9.15%.

• Strategic priorities for 2025-2029 focus on customer-centricity, value generation, sustainability, and leveraging AI.

Financial highlights

• Net interest income was ARS 541.3 billion, up 3.3% quarter-over-quarter but down 55.9% year-over-year.

• Net fee income totaled ARS 180.1 billion, up 20.7% quarter-over-quarter and 26.7% year-over-year.

• Operating results rose 56.9% quarter-over-quarter, while operating expenses fell 13.8% quarter-over-quarter.

• Efficiency ratio improved to 56.3% from 62.2% in Q4 2024.

• Nonperforming loan ratio was 1.38%, with coverage at 164.3%.

Outlook and guidance

• Real loan growth guidance revised to 45-50% for 2025, deposit growth to 25% in real terms.

• ROE guidance maintained in the mid to low teens; capital ratio forecasted at 16-16.5% by year-end.

• GDP growth expected at 5.5% and inflation at 35% for 2025.

• Strategic focus on digitalization, AI, and organic growth.

• Exchange rate projected to rise in line with inflation, reaching just below ARS 1,700 by 2026.