Banco BBVA Argentina (BBAR) Q2 2025 earnings summary

Executive summary

• Macroeconomic normalization and regulatory changes, including relaxed FX controls and a new IMF agreement, drove disinflation and economic stabilization, with GDP growth projected at 5.5% for 2025 after a prior contraction.

• Net income for Q2 2025 was ARS 59.6 billion, down 31.1% quarter-over-quarter and 62.1% year-over-year; net income for the first half of 2025 was ARS 146.1 billion, a 31.7% decrease year-over-year.

• Total assets reached ARS 19.26 trillion as of June 30, 2025, up 44.8% year-over-year, with shareholders' equity at ARS 2.88 trillion.

• The loan portfolio grew 109.7% year-over-year to ARS 11.15 trillion, and deposits increased 60.8% year-over-year to ARS 13.03 trillion.

• Market share in private sector loans and deposits increased, with digital client acquisition and sales reaching record highs.

Financial highlights

• Net interest income for Q2 2025 was ARS 591.8 billion, up 3.1% quarter-over-quarter but down 37.4% year-over-year; net commission income rose 20.8% year-over-year.

• Loan loss allowances surged 42.3% quarter-over-quarter and 149.5% year-over-year, reflecting loan book growth and higher NPLs.

• Operating expenses increased 7.5% quarter-over-quarter and 1.1% year-over-year; efficiency ratio stable at 56.5%.

• ROE for Q2 2025 was 7.6%, ROA at 1.2%; for the first half, ROE was 9.55% and ROA 1.54%.

• Net income from financial instruments at fair value through P&L rose 37.8% quarter-over-quarter, with gains from FX and gold after FX controls were lifted.

Outlook and guidance

• Guidance maintained for 50% real loan growth and 30-35% deposit growth in 2025, with ROE expected in low double digits and capital ratio around 17%.

• Macroeconomic normalization is expected to continue, with year-end inflation projected at 28% and GDP growth at 5.5%.

• Regulatory changes, including the lifting of FX controls and a floating exchange rate, are anticipated to boost cross-border lending and investment.

• The bank is implementing a new global strategy for 2025-2029, focusing on sustainable growth, innovation, and efficiency.

• Strategy remains focused on gaining market share, with growth pace dependent on system-wide demand.