Banco BBVA Argentina (BBAR) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was ARS 112.9 billion, up 178.8% quarter over quarter, but flat year over year; H1 2024 net income was ARS 153.4 billion, down 15.7% year over year.

• Operating income for Q2 2024 was ARS 446.7 billion, down 40.3% quarter over quarter; H1 2024 operating income rose 44.4% year over year.

• Digital transformation advanced, with digital sales accounting for over 93% of units and 74% of total sales value, and 81–84% of new customers acquired digitally by June 2024.

• GDP is projected to decrease by 4% in 2024, with year-end inflation expected at 135%, down from 211% in December 2023.

• Total assets decreased 18% year over year to ARS 9.54 trillion, while total deposits fell 22.2% to ARS 5.81 trillion.

Financial highlights

• Net interest income for Q2 2024 was ARS 678.6 billion, down 27.4% quarter over quarter and 1.5% year over year.

• Net fee income was ARS 58.8 billion, down 1.8% quarter over quarter and 32.4% year over year.

• Loan loss allowances increased 30.4% quarter over quarter, in line with real loan portfolio growth.

• Operating expenses were ARS 342.8 billion, down 6.6% quarter over quarter and up 0.5% year over year; efficiency ratio improved to 55.3% from 65.4% in Q1 2024.

• Net income benefited from a 59.9% lower loss in net monetary position due to lower inflation.

Outlook and guidance

• Management expects annual inflation to slow to 135% by year-end 2024, with GDP projected to fall 4%.

• Ongoing fiscal and monetary adjustments are expected to further slow inflation, though economic activity remains subdued.

• The bank aims to maintain strong capital, liquidity, and portfolio quality, and continue growing above inflation in private loans and deposits.