Banco BBVA Argentina (BBAR) Q3 2024 earnings summary

Executive summary

• Net income for 9M24 reached ARS 271.2 billion, up 15.66% year-over-year, with inflation-adjusted net income for 3Q24 at ARS 99.2 billion, down 21.6% quarter over quarter but up 224.8% year-over-year.

• Total assets were ARS 12.55 trillion as of September 30, 2024, and shareholders' equity stood at ARS 2.35 trillion.

• Private sector loans grew 26.5% quarter over quarter and 16.4% year-over-year to ARS 5.5 trillion, with market share in private sector loans at 10.35%.

• Customer deposits reached ARS 8.53 trillion, up 30.9% quarter over quarter, with market share in private deposits at 8.67%.

• Digital client acquisition and mobile transactions saw significant growth, with digital acquisition up 834% year-over-year and mobile transactions up 41% year-over-year.

Financial highlights

• Net interest income for 3Q24 was ARS 460.3 billion, down 39.5% quarter over quarter and 44.9% year-over-year; net interest income for 9M24 was ARS 2.27 trillion, down 0.69% year-over-year.

• Net fee income rose 7.9% quarter over quarter and 35.7% year-over-year to ARS 71.1 billion.

• Operating expenses fell 17.6% quarter over quarter, totaling ARS 316.6 billion, with administrative and personnel expenses down 3.96% year-over-year.

• Efficiency ratio improved to 59.7% (accumulated), down from 63.8% year-over-year.

• Liquid assets at ARS 5.7 trillion, representing 67.3% of total deposits.

Outlook and guidance

• Fiscal consolidation and exchange rate stability are moderating inflation, with 2024 GDP expected to decline 4% and rebound 6% in 2025.

• Year-end inflation is forecasted at 120–125%, down from 211% in 2023.

• Gradual easing of FX market restrictions is expected in Q4 2024 and Q1 2025, with continued growth in private sector loans and deposits anticipated.