BANCO BBVA ARGENTINA

BBAR
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Banco BBVA Argentina S A : 3Q20 Quarterly Report

11/24/2020 | 05:19pm

Banco BBVA Argentina S.A. announces Third Quarter

2020 results

Buenos Aires, November 24, 2020 - Banco BBVA Argentina S.A (NYSE; BYMA; MAE: BBAR; LATIBEX: XBBAR) ("BBVA Argentina" or "BBVA" or "the Bank") announced today its consolidated results for the third quarter (3Q20), ended on September 30, 2020.

As of January 1, 2020, the Bank started to inform its inflation adjusted results pursuant to IAS 29 reporting. To facilitate comparison, figures of comparable quarters of 2019 have been updated according to IAS 29 reporting to reflect the accumulated effect of inflation adjustment for each period up to September30, 2020.

3Q20 Highlights

  • BBVA Argentina's inflation adjusted net income in 3Q20 was $2.83 billion, 2.9% greater than the $2.75 billion reported in the second quarter of 2020 (2Q20) and 65.4% lower than the $8.19 billion reported in the third quarter of 2019 (3Q19).
  • In 3Q20, BBVA Argentina posted an inflation adjusted average return on assets (ROAA) of 1.9% and an inflation adjusted average return on equity (ROAE) of 11.0%.
  • In terms of activity, total consolidated financing to the private sector in 3Q20 totaled $258.6 billion, contracting in real terms 4.1% compared to 2Q20, and 10.6% compared to 3Q19. In the quarter, contraction was driven by the fall in overdrafts and loans for the prefinancing and financing of exports which decreased 41.0% and 27.6% respectively, partially offset by an increase in pledge loans, discounted instruments and credit cards, growing 17.1%, 15.7% and 10.8% respectively. BBVA's consolidated market share of private sector loans was 8.25% as of 3Q20.
  • Total deposits contracted 0.6% in real terms during the quarter, and expanded 6.5% in the year. The Bank's consolidated market share of private deposits was 6.48% as of 3Q20.
  • As of 3Q20, the non-performing loan ratio (NPL) reached 1.16%, with a 355.26% coverage ratio.
  • The accumulated efficiency ratio in 3Q20 was 58.0%, above 2Q20's 54.7%.
  • As of 3Q20, BBVA Argentina reached a regulatory capital ratio of 23.3%, entailing a $61.9 billion or 184.5% excess over minimum regulatory requirement. Tier I ratio was 22.6%. Total liquid assets represented 66.0% of the Bank's total deposits as of 3Q20.

Message from the CFO

"The pandemic's persistence during the third quarter of 2020 has contributed to keeping uncertainty over the country's economic situation, but has also promoted the continuity of banking services trends seen since the beginning of the lockdown.

"Digital transformation" are not just words that convey a path to be taken, but a reality that consolidates day by day. Eventually, we should move past the pandemic, and uncertainties regarding the economy will cease; but all these months will have served as an accelerated consolidation of banking services digitalization.

BBVA Argentina has provided its clients, through its traditional and digital channels, not only its wide range of products but also all possible support that has surged through the health emergency regulation implemented by the Argentine Government.

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In this line, the digitalization of our service offering has evolved in such way that as of September 2020, digital client penetration reached 71% from 65% the previous year, while mobile client penetration reached 59% from 50% the previous year.

Additionally, BBVA Argentina keeps a solid balance sheet, both in its loan portfolio behavior (non-performing loan ratio of 1.16%), as in its liquidity and capital ratios, which at September end were at 66.0% (liquidity ratio) and 23.3% (regulatory capital ratio) respectively, which places the Bank in a strong position to face a long expected economic recovery during the next months.

Meanwhile, the Bank closely monitors the impact of the pandemic over its business, financial conditions and operating results, in the aim of anticipating possible actions to optimize value for its shareholders, as it keeps the solidity it has wisely developed, for as long as the volatility and uncertainty as seen during 2020 remains.

In terms of responsible banking, BBVA Argentina keeps working towards its sustainability model, supporting responsible business actions regarding inclusion, financial education and environmental protection, as part of its compromise with the country."

Ernesto R. Gallardo, CFO of BBVA Argentina

3Q20 Conference Call

Wednesday, November 25, 2020. At 12:00 p.m. Buenos Aires time - (10:00 a.m. EST)

To participate, please dial in:

+1-844-450-3851 (US Toll-Free)+1-412-317-6373 (International) +54-11-3984-5677 (Argentina)

Web Phone: click here

Conference ID: BBVA

Webcast & Replay: click here

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Safe Harbor Statement

This press release contains certain forward-looking statements that reflect the current views and/or expectations of Banco BBVA Argentina and its management with respect to its performance, business and future events. We use words such as "believe," "anticipate," "plan," "expect," "intend," "target," "estimate," "project," "predict," "forecast," "guideline," "seek," "future," "should" and other similar expressions to identify forward-looking statements, but they are not the only way we identify such statements. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this release. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) changes in general economic, financial, business, political, legal, social or other conditions in Argentina or elsewhere in Latin America or changes in either developed or emerging markets, (ii) changes in regional, national and international business and economic conditions, including inflation, (iii) changes in interest rates and the cost of deposits, which may, among other things, affect margins,

  1. unanticipated increases in financing or other costs or the inability to obtain additional debt or equity financing on attractive terms, which may limit our ability to fund existing operations and to finance new activities, (v) changes in government regulation, including tax and banking regulations, (vi) changes in the policies of Argentine authorities, (vii) adverse legal or regulatory disputes or proceedings, (viii) competition in banking and financial services, (ix) changes in the financial condition, creditworthiness or solvency of the customers, debtors or counterparties of Banco BBVA Argentina, (x) increase in the allowances for loan losses, (xi) technological changes or an inability to implement new technologies, (xii) changes in consumer spending and saving habits, (xiii) the ability to implement our business strategy and (xiv) fluctuations in the exchange rate of the Peso. The matters discussed herein may also be affected by risks and uncertainties described from time to time in Banco BBVA Argentina's filings with the U.S. Securities and Exchange Commission (SEC) and Comisión Nacional de Valores (CNV). Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as the date of this document. Banco BBVA Argentina is under no obligation and expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Information

This earnings release has been prepared in accordance with the accounting framework established by the Central Bank of Argentina ("BCRA"), based on International Financial Reporting Standards ("I.F.R.S.") and the resolutions adopted by the International Accounting Standards Board ("I.A.S.B") and by the Federación Argentina de Consejos Profesionales de Ciencias Económicas ("F.A.C.P.E."), with the transitory exceptions: (i) the record of a prevision for contingencies referred to uncertain fiscal positions required by the BCRA, (ii) the adjustment in valuation established by the B.C.R.A. applied to the valuation of the remaining investment the Bank keeps of Prisma Medios de Pago S.A. ("Prisma"), and (iii) the temporary exclusion of the application of the IFRS 9 impairment model for non-financial public sector debt instruments.

As of 1Q20, the Bank started to inform its inflation adjusted results pursuant to IAS 29 reporting. To facilitate comparison, figures of comparable quarters of 2019 have been updated according to IAS 29 reporting to reflect the accumulated effect of inflation adjustment for each period up to June 30, 2020.

The information in this press release contains unaudited financial information that consolidates, line item by line item, all of the banking activities of BBVA Argentina, including: BBVA Asset Management Argentina S.A., Consolidar AFJP- undergoing liquidation proceeding, and as of July 1, 2019, PSA Finance Argentina Compañía Financiera S.A. ("PSA") and Volkswagen Financial Services Compañía Financiera S.A ("VWFS").

BBVA Consolidar Seguros S.A. is disclosed on a consolidated basis recorded as Investments in associates (reported under the proportional consolidation method), and the corresponding results are reported as "Income from associates"), same as Rombo Compañía Financiera S.A. ("Rombo"), Play Digital S.A. and Interbanking S.A.

Financial statements of subsidiaries have been elaborated as of the same dates and periods as Banco BBVA Argentina S.A.'s. In the case of consolidated companies PSA and VWFS, financial statements were prepared considering the B.C.R.A. accounting framework for institutions belonging to "Group B", without considering the model established by the IFRS 9 5.5. "Impairment" section for periods starting as of January 1, 2021. As of October 2020, PSA and VWFS will belong to "Group C" institutions, keeping the same accounting framework as for "Group B" institutions.

The information published by the BBVA Group for Argentina is prepared according to IFRS, without considering the temporary exceptions established by BCRA.

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Quarterly results

Income Statement

BBVA ARG Consolidated

Chg (%)

Proforma

In millions AR$ except EPS and ADS - Inflation adjusted

3Q20

2Q20

3Q19

QoQ

YoY

3Q20(4)

Net Interest Income

16,652

17,092

22,384

(2.6%)

(25.6%)

15,963

Net Fee Income

3,005

3,347

2,247

(10.2%)

33.7%

3,026

Net income from measurement of financial instruments at fair value

886

1,359

2,339

(34.8%)

(62.1%)

886

through P&L

Net lincome from write-down of assets at amortized cost and at fair value

(3,988)

(2,225)

5

(79.3%)

n.m

(3,988)

through OCI

Foreign exchange and gold gains

1,618

1,609

5,385

0.5%

(70.0%)

1,629

Other operating income

1,500

1,230

1,563

22.0%

(4.0%)

1,530

Loan loss allowances

(927)

(2,848)

(6,936)

67.4%

86.6%

(895)

Net operating income

18,744

19,562

26,986

(4.2%)

(30.5%)

18,150

Personnel benefits

(4,583)

(4,269)

(5,249)

(7.3%)

12.7%

(4,518)

Adminsitrative expenses

(4,360)

(4,125)

(4,924)

(5.7%)

11.5%

(4,283)

Depreciation and amortization

(838)

(907)

(1,064)

7.7%

21.3%

(828)

Other operating expenses

(2,706)

(3,048)

(5,028)

11.2%

46.2%

(2,579)

Operating income

6,257

7,213

10,721

(13.2%)

(41.6%)

5,943

Income from associates

(14)

202

(48)

(106.8%)

71.2%

(9)

Income from net monetary position

(2,242)

(2,459)

(1,406)

8.9%

(59.4%)

(1,985)

Net income before income tax

4,002

4,955

9,267

(19.2%)

(56.8%)

3,949

Income tax

(1,169)

(2,202)

(1,082)

46.9%

(8.0%)

(1,102)

Income for the period

2,833

2,753

8,185

2.9%

(65.4%)

2,847

Other Comprehensive Income (OCI)(5)

1,641

2,074

(7,044)

58.4%

141.4%

Number of common shares outstanding (in thousands)

612,710

612,710

612,660

-

0.0%

Weighted average number of common shares outstanding (2)(3)

612,710

612,710

612,660

-

N/A

Earnings per Share (EPS)

4.63

4.41

12.65

4.9%

(63.4%)

Earnings per ADS (1)

13.88

13.23

37.94

4.9%

(63.4%)

  1. One ADS represents three ordinary shares
  2. In thousands of shares

1,641

612,710

612,710

4.63

13.88

  1. As of October 9th, 2019, 50.441 shares have been issued related to the merger by absorption with BBVA Francés Valores S.A., totaling 612,710,079 shares. As of the release of these consolidated financial statements, the increase in capital and the merger by absoprtion are pending registry approval by the I.G.J.
  2. Excludes consolidation with VWFS y PSA.
  3. Net of Income Tax

BBVA Argentina 3Q20 net income was $2.8 billion, 2.9% or $81 million greater than 2Q20, and 65.4% or $5.4 billion lower than 3Q19. The quarter-over-quarter (QoQ) increase is mainly explained by a lower income tax derived from a reduced taxable base, additional to temporary differences between fiscal and accounting inflation adjustment regulations.

Net income from write-down of assets at amortized cost and at fair value (FV) through Other Comprehensive Income (OCI) reflects a loss in 3Q20 of $4.0 billion, 79.3% or $1.8 million greater than that recorded in 2Q20. 72% of the result in this line is mainly explained by the accumulated inflation adjustment in OCI of the remaining position in U.S. dollar linked notes (LELINK), which the Bank exchanged in the voluntary swap offered by the National Treasury on July 17, 2020.

As of 3Q20, net operating income was $18.7 billion, decreasing 4.2% or $818 million QoQ, and 30.5% or $8.2 billion year-over-year (YoY).

Operating income in 3Q20 was $6.3 billion, decreasing 13.2% or $955 million QoQ, and 41.6% or $4.5 billion YoY.

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Net interest income

Net Interest Income

BBVA ARG Consolidated

Chg (%)

Proforma (1)

In millions AR$ - Inflation adjusted

3Q20

2Q20

3Q19

QoQ

YoY

3Q20

Net Interest Income

16,652

17,091

22,384

(2.6%)

(25.6%)

15,963

Interest Income

26,114

24,052

39,004

8.6%

(33.0%)

24,956

From government securities

8,534

6,364

13,861

34.1%

(38.4%)

8,534

From private securities

0

2

4

(100.0%)

(100.0%)

-

Interest from loans and other financing

14,780

15,277

21,954

(3.3%)

(32.7%)

13,678

Financial Sector

254

254

914

0.1%

(72.2%)

520

Overdrafts

2,049

3,167

3,251

(35.3%)

(37.0%)

2,050

Discounted Instruments

2,062

1,938

3,032

6.4%

(32.0%)

2,062

Mortgage loans

316

300

415

5.4%

(23.8%)

316

Pledge loans

646

610

1,352

6.0%

(52.2%)

136

Consumer Loans

2,061

2,151

2,663

(4.2%)

(22.6%)

2,061

Credit Cards

4,110

3,835

5,974

7.2%

(31.2%)

4,110

Financial leases

115

108

176

6.2%

(34.5%)

88

Loans for the prefinancing and financing of exports

292

413

1,272

(29.5%)

(77.1%)

292

Other loans

2,874

2,500

2,906

15.0%

(1.1%)

2,043

CER/UVA clause adjustment

2,077

1,934

2,741

7.4%

(24.3%)

2,020

Other interest income

724

474

444

52.6%

63.1%

724

Interest expenses

9,463

6,961

16,619

35.9%

(43.1%)

8,993

Deposits

8,607

5,738

13,297

50.0%

(35.3%)

8,513

Checking accounts

389

181

528

115.4%

(26.2%)

389

Savings accounts

44

52

62

(16.3%)

(30.3%)

44

Time deposits

8,174

5,506

12,706

48.5%

(35.7%)

8,080

CER/UVA clause adjustment

173

268

435

(35.5%)

(60.3%)

173

Other liabilities from financial transactions

389

640

2,045

(39.2%)

(81.0%)

282

Other

293

314

842

(6.5%)

(65.2%)

25

(1) Excludes consolidation with PSA and VWFS

Net interest income for 3Q20 was $16.7 billion, decreasing 2.6% or $439 million QoQ, and 25.6% or $5.7 billion YoY. In 3Q20, the greater interest income does not make up for the increase in interest expenses, mainly due to the increase in passive rates and time deposits.

In 3Q20 interest income totaled $26.1 billion, 8.6% or $2.1 billion greater than 2Q20, and 33.0% or $12.9 billion lower than 3Q19. Quarterly increase is explained by an increment in income from government securities, and in a lesser extent, by the increase in credit card activity.

Income from government securities grew 34.1% or $2.2 billion compared to 2Q20, and fell 38.4% or $5.3 billion compared to 3Q19. This is explained by an increase in position in BCRA liquidity instruments (LELIQ) as a consequence of an increment in time deposits (as LELIQ are used in time deposit reserve requirement integration), as well as driven by BCRA's Communication "A" 7078 which enables financial institutions to increment their excess LELIQ position based on time deposits granted at minimum rate. 85% of results is explained by financial instruments at fair value through OCI, mainly LELIQ.

Interest income from loans and other financing totaled $14.8 billion, decreasing 3.3% or $497 million QoQ. This is mainly explained by a fall in overdrafts, derived from the economic situation, and is partially offset by an increase in credit card activity, and by other loans (company loans or "Préstamos a Interés Vencido" or "PIV").

Income from CER/UVA adjustments was 7.4% higher QoQ and 24.3% lower YoY, mainly explained by the acceleration in inflation during the quarter (7.7% in 3Q20 vs. 5.4% in 2Q201).

Interest expenses totaled $9.5 billion, 35.9% higher than 2Q20 and 43.1% lower than 3Q19. Quarterly increase is explained by an increment in the average minimum rate of time deposits2 and of interest- bearing checking accounts, apart from an increase in the amount granted in time deposits.

  1. Source: Instituto Nacional de Estadística y Censos (INDEC). Consumer Price Index.
  2. Retail time deposit minimum rates changed from 79% to 87% of the LELIQ rate as of July, 30, 2020 (BCRA Communication "A" 7078).

- 5 -

Interest expenses from time deposits explain 86.4% of total interest expenses versus 79.1% on the previous quarter. Interests from time deposits grew 48.5% QoQ and fell 35.7% YoY.

Net interest margin (NIM)

As of 3Q20, total net interest margin (NIM) was 16.2%, slightly lower than 2Q20's 16.7%.

Assets & Liabilities Performance - AR$

BBVA ARG Consolidated

In millions AR$. Rates and spreads in annualized %

3Q20

2Q20

1Q20

Average

Interest

Average

Average

Interest

Average

Average

Interest

Average

Balance

Earned/Paid

Real Rate

Balance

Earned/Paid

Real Rate

Balance

Earned/Paid

Real Rate

Total interest-earning assets

366,151

25,913

28.4%

357,341

23,306

26.2%

299,835

27,138

36.3%

Debt securities

117,299

10,067

34.4%

89,023

6,859

30.9%

88,792

7,946

35.9%

Loans to customers/financial institutions

231,403

15,835

27.4%

235,156

16,433

28.0%

208,369

19,191

36.9%

Other assets

17,449

11

0.3%

33,162

14

0.2%

2,674

0

0.0%

Total non interest-earning assets

104,078

-

0.0%

91,683

-

0.0%

110,999

-

0.0%

Total Assets

470,229

25,913

449,023

23,306

410,834

27,138

Total interest-bearing liabilities

204,229

9,429

18.5%

190,572

6,896

14.5%

166,669

9,168

22.1%

Savings accounts

77,761

431

2.2%

80,302

232

1.2%

65,377

329

2.0%

Time deposits

120,248

8,510

28.4%

94,901

5,881

24.9%

85,480

7,697

36.1%

Debt securities issued

3,007

136

18.1%

6,724

638

38.1%

8,374

1,037

49.7%

Other liabilities

3,214

352

43.9%

8,645

145

6.7%

7,438

106

5.7%

Total non-interest-bearing liabilities

270,448

-

0.0%

267,385

-

0.0%

250,821

-

0.0%

Total liabilities and equity

474,678

9,429

8.0%

457,957

6,896

6.0%

417,490

9,168

8.8%

NIM - AR$

18.1%

18.4%

24.0%

Spread - AR$

9.9%

11.6%

14.2%

Assets & Liabilities Performance - Foreign Currency

BBVA ARG Consolidated

In millions AR$. Rates and spreads in annualized %

3Q20

2Q20

1Q20

Average

Interest

Average

Average

Interest

Average

Average

Interest

Average

Balance

Earned/Paid

Real Rate

Balance

Earned/Paid

Real Rate

Balance

Earned/Paid

Real Rate

Total interest-earning assets

41,987

209

2.0%

53,503

746

5.6%

57,388

783

5.5%

Debt securities

1,308

(270)

(82.9%)

4,330

112

10.4%

7,930

158

8.0%

Loans to customers/financial institutions

34,966

479

5.5%

44,484

633

5.7%

47,840

624

5.2%

Other assets

5,714

0

0.0%

4,689

1

0.1%

1,618

1

0.2%

Total non interest-earning assets

109,885

-

-

100,949

-

-

96,841

-

-

Total Assets

151,872

209

154,452

746

154,229

783

Total interest-bearing liabilities

105,809

42

0.2%

104,030

64

0.2%

107,872

102

0.4%

Savings accounts

86,380

1

0.0%

83,563

2

0.0%

86,253

2

0.0%

Time deposits and Investment accounts

18,786

40

0.9%

18,982

54

1.1%

20,395

67

1.3%

Other liabilities

642

0

0.2%

1,486

9

2.4%

1,224

33

10.7%

Total non-interest-bearing liabilities

41,615

-

41,488

-

39,701

-

Total liabilities and equity

147,424

42

0.1%

145,519

64

0.2%

147,573

102

0.3%

NIM - Foreign currency

1.6%

5.1%

4.8%

Spread - Foreign currency

1.8%

5.3%

5.1%

Net fee income

Net Fee Income

BBVA ARG Consolidated

Chg (%)

In millions AR$ - Inflation adjusted

3Q20

2Q20

3Q19

QoQ

YoY

Net Fee Income

3,005

3,347

2,247

(10.2%)

33.7%

Fee Income

6,269

6,572

6,758

(4.6%)

(7.2%)

Linked to liabilities

2,539

2,588

3,490

(1.9%)

(27.2%)

From credit cards

2,665

3,049

2,174

(12.6%)

22.6%

Linked to loans

327

274

364

19.5%

(10.2%)

From insurance

317

327

329

(3.2%)

(3.9%)

From foreign trade and foreign currency transactions

338

261

355

29.3%

(4.9%)

Other fee income

83

73

44

13.0%

86.9%

Fee expenses

3,265

3,225

4,511

1.2%

(27.6%)

In 3Q20 net fee income fell 10.2% or $342 million compared to 2Q20, and grew 33.7% or $758 million compared to 3Q19.

Fee income in 3Q20 totaled $6.3 billion, contracting 4.6% QoQ. This is explained by fees from credit card consumption received during 2Q20, which more than offset the increase in fees related to foreign trade and foreign currency transactions which grew 29.3%, and those linked to loans, which increased 19.5% during the period.

Fee expenses increased 1.2% compared to 2Q20 and contracted 27.6% when compared to 3Q19. Quarterly increase is explained by a surge in activity.

- 6 -

If fees from credit card consumption received in 2Q20 were excluded, net fee income and fee income in 3Q20 would have increased 27.7% and 12.4% respectively QoQ.

Net income from measurement of financial instruments at fair value and foreign exchange and gold gains/losses

Net Income from financial instruments at fair value (FV)

BBVA ARG Consolidated

Chg (%)

through P&L

In millions AR$ - Inflation adjusted

3Q20

2Q20

3Q19

QoQ

YoY

Net Income from financial instruments at FV through P&L

886

1,359

2,339

(34.8%)

(62.1%)

Income from government securities

812

1,159

1,454

(29.9%)

(44.1%)

Income from private securities

(57)

(107)

(3)

46.8%

n.m

Interest rate swaps

18

23

285

(22.0%)

(93.7%)

Gains from foreign currency forward transactions

99

2

654

n.m

(84.9%)

Income from debt and equity instruments

11

18

(51)

(38.1%)

121.3%

Other

3

263

-

(98.8%)

N/A

In 3Q20, net income from financial instruments at Fair Value (FV) through P&L was $886 million, decreasing 34.8% or $473 million QoQ. This is explained by the lower LELIQ position during August and September.

Differences in quoted prices of gold and foreign currency

BBVA ARG Consolidated

Chg (%)

In millions AR$ - Inflation adjusted

3Q20

2Q20

3Q19

QoQ

YoY

Foreign exchange and gold gains/(losses) (1)

1,618

1,609

5,385

0.5%

(70.0%)

From foreign exchange position

(195)

318

346

(161.3%)

(156.4%)

Income from purchase-sale of foreign currency

1,813

1,291

5,039

40.4%

(64.0%)

Net income from financial instruments at FV through P&L (2)

99

2

654

n.m

(84.9%)

Income from foreign currency forward transactions

99

2

654

n.m

(84.9%)

Total differences in quoted prices of gold & foreign currency (1) + (2)

1,716

1,611

6,039

6.5%

(71.6%)

In 3Q20, the total differences in quoted prices of gold and foreign currency showed profit for $1.7 billion, growing 6.5% or $105 million compared with 2Q20, due to an increase in results from purchase and sale of foreign currency, derived from a surge in activity.

Other operating income

Other operating income

BBVA ARG Consolidated

Chg (%)

In millions AR$ - Inflation adjusted

3Q20

2Q20

3Q19

QoQ

YoY

Operating Income

1,500

1,230

1,563

21.9%

(4.0%)

Rental of safe deposit boxes (1)

259

278

210

(6.6%)

23.5%

Adjustments and interest on miscellaneous receivables (1)

521

336

449

55.3%

16.0%

Punitive interest (1)

1

17

88

(97.1%)

(99.4%)

Loans recovered

239

178

231

34.8%

3.8%

Fee income from credit and debit cards (1)

58

44

219

33.8%

(73.3%)

Other Operating Income(2)

421

378

442

11.3%

(4.9%)

  1. Included in the efficiency ratio calculation
  2. Includes some of the concepts used in the efficiency ratio calculation

In 3Q20 other operating income totaled $1.5 billion, growing 21.9% or $270 million QoQ, mainly explained by an increase in adjustments and interest on miscellaneous receivables, where interests received from the Government for zero rate credit lines are recorded, and also thanks to a responsive risk management that enabled credit recovery.

- 7 -

Operating expenses

Personnel benefits and Administrative expenses

Personnel Benefits and Adminsitrative Expenses

BBVA ARG Consolidated

Chg (%)

In millions AR$ - Inflation adjusted

3Q20

2Q20

3Q19

QoQ

YoY

Total Personnel Benefits and Adminsitrative Expenses

8,943

8,394

10,173

6.5%

(12.1%)

Personnel Benefits (1)

4,583

4,269

5,249

7.3%

(12.7%)

Administrative expenses (1)

4,360

4,124

4,924

5.7%

(11.5%)

Travel expenses

28

16

49

68.1%

(43.9%)

Administrative expenses

327

404

378

(18.9%)

(13.5%)

Security services

165

227

154

(27.0%)

7.3%

Fees to Bank Directors and Supervisory Committee

16

7

5

135.9%

215.9%

Other fees

231

164

246

40.6%

(6.2%)

Insurance

59

39

47

49.1%

24.8%

Rent

410

463

342

(11.4%)

20.0%

Stationery and supplies

9

20

23

(56.6%)

(61.9%)

Electricity and communications

233

218

225

7.0%

3.3%

Advertising

185

137

190

35.2%

(2.5%)

Taxes

992

1,014

1,053

(2.2%)

(5.8%)

Maintenance costs

504

517

410

(2.4%)

23.1%

Armored transportation services

581

343

1,282

69.2%

(54.7%)

Other administrative expenses

619

556

519

11.5%

19.3%

Headcount*

6,065

6186

6323

(121)

(258)

BBVA (Bank)

5,968

6,090

6,225

(122)

(257)

Associates (2)*

97

96

98

1

(1)

Total branches

247

247

251

-

(4)

Efficiency ratio

66.1%

54.2%

25.4%

1,190 bps

4,068 bps

Accumulated Efficiency Ratio

58.0%

54.7%

43.9%

337 bps

1,416 bps

Efficiency ratio - Excl. Inflation adjustment

49.1%

42.8%

16.4%

631 bps

3,279 bps

Accumulated Efficiency Ratio - Excl. Inflation adjustment

46.2%

41.8%

33.8%

436 bps

1,234 bps

  1. Concept included in the efficiency ratio calculation
  2. Includes BBVA Asset Management Argentina S.A. and PSA & VWFS as of 3Q19 *corresponds to total effective employees, net of temporary contract employees

During 3Q20, personnel benefits and administrative expenses totaled $8.9 billion, increasing 6.5% or $549 million QoQ, and decreasing 12.1% or $1.2 billion YoY.

Personnel benefits grew 7.3% or $3.1 billion compared to 2Q20, and decreased 12.7% or $666 million compared to 3Q19. This increase is mainly due to an increment in salaries, as a consequence of a collective bargaining agreement with labor unions on July 16, 2020. This agreement considers a 26% increase in four instalments (7% in January, 6% in April, 7% in July and 6% in October), with a review clause in November, 2020.

In 3Q20, administrative expenses grew 5.7% or $235 million QoQ, and contracted 11.5% or $564 million YoY. The quarterly increase is mainly explained by an increment in armored transportation services, derived from a surge in activity and increased FX market restrictions enforced in September, partially offset by savings in administrative services and rentals.

The accumulated efficiency ratio as of 3Q20 was 58.0%, above the 54.7% and the 43.9% reported in 2Q20 and 3Q19 respectively. The increase is explained by a higher percentage increment of the numerator (expenses) than the denominator (income), which has been mainly affected by the increase in financial expenses.

Excluding inflation adjustments included in the lines "Income from the monetary position" and "Net income from write-downof assets at amortized cost and at fair value through OCI", the accumulated efficiency ratio as of 3Q20 would reach 46.2%.

- 8 -

Other operating expenses

Other Operating Expenses

BBVA ARG Consolidated

Chg (%)

In millions AR$ - Inflation adjusted

3Q20

2Q20

3Q19

QoQ

YoY

Other Operating Expenses

2,706

3,048

5,028

(11.2%)

(46.2%)

Turnover tax

1,562

1,790

2,633

(12.8%)

(40.7%)

Inicial loss of loans below market rate

108

100

239

7.5%

(54.9%)

Contribution to the Deposit Guarantee Fund (SEDESA)

165

154

190

7.5%

(12.9%)

Interest on liabilities from financial lease

90

82

94

9.2%

(4.8%)

Other allowances

265

(88)

1,442

401.4%

(81.6%)

Other operating expenses

517

1,010

430

(48.8%)

20.2%

In 3Q20 other operating expenses contracted 11.2% or $342 million QoQ, and 46.2% or $2.2 billion YoY.

The quarterly contraction is mainly due to a reduction in Turnover tax, for the recognition of an advanced payment of this tax for 2021 in the City of Buenos Aires.

On the other hand, there is also a reduction in Other operating expenses as a consequence of the release of legal provisions.

Income from associates

This line reflects the results from non-consolidated associate companies. During 3Q20, a loss of $14 million has been reported, mainly due to the participation in BBVA Consolidar Seguros S.A., Rombo Compañía Financiera S.A., Interbanking S.A. and Play Digital S.A.

Income tax

Income tax expenses accumulated in the first nine months of 2020 totaled $5.8 billion, representing an accumulated effective rate of 39%, compared to an accumulated effective rate of 26% as of 3Q19. The increment in such rate compared to the regulatory 30% is based on differences between inflation adjustment regulations and BCRA regulations, changing the taxable base.

- 9 -

Balance sheet and activity

Loans and other financing

Loans and other financing

BBVA ARG Consolidated

Chg (%)

Proforma (2)

In millions AR$ - Inflation adjusted

3Q20

2Q20

3Q19

QoQ

YoY

3Q20

To the public sector

-

13

1

(100.0%)

(100.0%)

-

To the financial sector

3,187

3,860

6,048

(17.4%)

(47.3%)

6,661

Non-financial private sector and residents abroad

258,647

269,567

289,413

(4.1%)

(10.6%)

244,162

Non-financial private sector and residents abroad - AR$

229,302

231,566

204,674

(1.0%)

12.0%

214,819

Overdrafts

19,754

33,510

24,012

(41.0%)

(17.7%)

19,754

Discounted instruments

29,807

25,748

21,262

15.8%

40.2%

29,807

Mortgage loans

15,888

16,678

17,303

(4.7%)

(8.2%)

15,888

Pledge loans

9,717

8,301

22,594

17.1%

(57.0%)

2,110

Consumer loans

26,120

25,701

32,636

1.6%

(20.0%)

26,047

Credit cards

90,350

81,560

69,763

10.8%

29.5%

90,350

Receivables from financial leases

1,507

1,419

2,414

6.2%

(37.6%)

1,272

Other loans (1)

36,160

38,650

14,690

(6.4%)

146.1%

29,592

Non-financial private sector and residents abroad - Foreign Currency

29,344

38,000

84,739

(22.8%)

(65.4%)

29,342

Overdrafts

3

2

15

21.8%

(80.1%)

3

Discounted instruments

2

18

8,808

(89.3%)

(100.0%)

2

Mortgage loans

-

208

212

(100.0%)

(100.0%)

-

Credit cards

1,547

1,394

3,315

11.0%

(53.3%)

1,547

Receivables from financial leases

166

254

390

(34.7%)

(57.5%)

166

Loans for the prefinancing and financing of exports

16,994

23,478

57,239

(27.6%)

(70.3%)

16,994

Other loans (1)

10,632

12,647

14,761

(15.9%)

(28.0%)

10,630

% of total loans to Private sector in AR$

88.7%

85.9%

70.7%

275 bps

1,793 bps

88.0%

% of total loans to Private sector in Foreign Currency

11.3%

14.1%

29.3%

(275)bps

(1,793)bps

12.0%

% of mortgage loans with UVA adjustments (3)

85.9%

86.1%

84.2%

(20)bps

166 bps

85.9%

% of pledge loans with UVA adjustments (3)

15.7%

22.0%

11.6%

(629)bps

417 bps

11.0%

% of personal loans with UVA adjustments (3)

21.3%

29.9%

42.9%

(866)bps

(2,170)bps

21.3%

% of loans with UVA adjustments over Total loans (3)

4.3%

4.8%

6.7%

(47)pbs

(235)pbs

4.0%

Total loans and other financing

261,834

273,440

295,462

(4.2%)

(11.4%)

250,823

Allowances

(10,914)

(11,595)

(14,374)

5.9%

24.1%

(10,683)

Total net loans and other financing

250,920

261,845

281,088

(4.2%)

(10.7%)

240,140

(1) Includes IFRS adjustment.

(2) Excludes consolidation with VWFS & PSA.

(3) Excludes effect of accrued adjustments.

Private sector loans in 3Q20 totaled $258.6 billion, decreasing 4.1% or $10.9 billion QoQ, and 10.6% or $30.8 billion YoY.

Loans to the financial sector fell 17.4% QoQ, mainly because of the maturity of a loan.

Loans to the private sector in pesos decreased 1.0% in 3Q20, and grew 12.0% in the year. Loans to the private sector denominated in foreign currency fell 22.8% QoQ and 65.4% YoY, mainly driven by the contraction in demand of loans in foreign currency. These loans, measured in U.S. dollars, fell 29.3% and 79.1% QoQ and YoY respectively. The increase in the currency exchange rate versus the U.S. dollar was 8.1% QoQ and 79.5% YoY.

Loans and other financing

BBVA ARG Consolidated

Chg (%)

Proforma (2)

In millions AR$ - Inflation adjusted

3Q20

2Q20

3Q19

QoQ

YoY

3Q20

Non-financial private sector and residents abroad - Retail

143,622

133,841

145,823

7.3%

(1.5%)

135,942

Mortgage loans

15,888

16,885

17,516

(5.9%)

(9.3%)

15,888

Pledge loans

9,717

8,301

22,594

17.1%

(57.0%)

2,110

Consumer loans

26,120

25,701

32,636

1.6%

(20.0%)

26,047

Credit cards

91,898

82,954

73,078

10.8%

25.8%

91,898

Non-financial private sector and residents abroad - Commercial

115,025

135,726

143,590

(15.3%)

(19.9%)

108,220

Overdrafts

19,757

33,512

24,027

(41.0%)

(17.8%)

19,757

Discounted instruments

29,809

25,766

30,069

15.7%

(0.9%)

29,809

Receivables from financial leases

1,673

1,673

2,804

(0.0%)

(40.4%)

1,437

Loans for the prefinancing and financing of exports

16,994

23,478

57,239

(27.6%)

(70.3%)

16,994

Other loans (1)

46,792

51,297

29,451

(8.8%)

58.9%

40,222

% of total loans to Retail sector

55.5%

49.7%

50.4%

588 bps

514 bps

55.7%

% of total loans to Commercial sector

44.5%

50.3%

49.6%

(588)bps

(514)bps

44.3%

(1) Includes IFRS adjustment

(2) Excludes consolidation with VWFS & PSA.

- 10 -

Considering retail loans (mortgage, pledge, consumer and credit card loans), these have increased 7.3% QoQ and fell 1.5% YoY. In the quarter, the greatest increases are reflected in pledge loans and credit card loans (17.1% and 10.8% respectively), the latter boosted by Ahora 12 and Ahora 18 programs.

Commercial loans (including overdrafts, discounted instruments, receivables from financial leases, loans for the prefinancing and financing of exports, and other loans) fell 15.3% QoQ and 19.9% YoY. The quarterly decrease is mainly explained by a 41.0% decline in overdrafts, and a 27.6% decline in loans for the prefinancing and financing of exports. This was partially offset by a 15.7% increase in discounted instruments, and a 2.2% increase in company loans (or "PIV", in other loans).

Market share - Private sector Loans

BBVA ARG

Chg (bps)

In %

3Q20

2Q20

3Q19

QoQ

YoY

Private sector loans - Bank

7.46%

7.50%

7.34%

(4)bps

12

bps

Private sector loans - Consolidated*

8.25%

8.54%

8.13%

(29)bps

12

bps

Based on daily BCRA information. Capital balance as of the last day of each quarter. * Consolidates PSA, VWFS & Rombo

Asset quality

Asset Quality

BBVA ARG Consolidated

Chg (%)

In millions AR$ - Inflation adjusted

3Q20

2Q20

3Q19

QoQ

YoY

Commercial non-performing portfolio (1)

471

1,433

5,293

(67.1%)

(91.1%)

Total commercial portfolio

89,907

113,501

136,889

(20.8%)

(34.3%)

Commercial non-performing portfolio / Total commercial portfolio

0.52%

1.26%

3.87%

(74)bps

(334)bps

Retail non-performing portfolio (1)

2,601

2,871

4,412

(9.4%)

(41.0%)

Total retail portfolio

173,945

163,089

161,791

6.7%

7.5%

Retail non-performing portfolio / Total retail portfolio

1.50%

1.76%

2.73%

(27)bps

(123)bps

Total non-performing portfolio (1)

3,072

4,304

9,705

(28.6%)

(68.3%)

Total portfolio

263,852

276,590

298,680

(4.6%)

(11.7%)

Total non-performing portfolio / Total portfolio

1.16%

1.56%

3.25%

(39)bps

(208)bps

Allowances

10,914

11,595

14,374

(5.9%)

(24.1%)

Allowances /Total non-performing portfolio

355.26%

269.38%

148.11%

8,588 bps

20,715 bps

Write offs

5,899

5,303

2,030

11.2%

190.6%

Write offs / Total portfolio

2.24%

1.92%

0.68%

32 bps

156 bps

Cost of Risk (CoR)

1.37%

4.27%

9.31%

(290)bps

(794)bps

  1. Non-performingloans include: all loans to borrowers classified as "Deficient Servicing (Stage 3)", "High Insolvency Risk (Stage 4)", "Irrecoverable" and/or "Irrecoverable for Technical Decision" (Stage 5) according to BCRA debtor classification system

In 3Q20, asset quality ratio or NPL (total non-performing portfolio / total portfolio) was 1.16%. This ratio was positively affected by the temporary flexibility in BCRA regulation regarding debtor classification during the COVID-19 pandemic, which extends grade periods in 60 days before a loan is classified as non- performing, and suspends the mandatory reclassification of clients that have an irregular performance with other institutions but a regular performance with the Bank.

The coverage ratio (allowances / total non-performing portfolio) increased to 355.26% in 3Q20, from 269.38% in 2Q20. This is explained by a decrease in non-performing loans, which is greater than the increase in allowances as a consequence of the implementation of impairment models, and the continuing effect of waivers enforced though BCRA regulation regarding debtor classification.

Cost of risk (loan loss allowances / average total loans) reached 1.37%, lower than the 4.27% recorded in 2Q20. This is mainly explained by an adequate evolution in credit quality, especially in the commercial portfolio.

- 11 -

BBVA ARG

Analysis for the allowance of loan losses

Balance at

Stage 1

Stage 2

Stage 3

Monetary result

12/31/2019

generated by allowances

In millions AR$

Other financial assets

277

3

-

1

(54)

Loans and other financing

13,715

73

1,919

(2,434)

(2,614)

Other debt securities

1

(1)

-

-

-

Eventual commitments

1,108

323

(50)

(23)

(187)

Total allowances

15,101

398

1,869

(2,456)

(2,855)

* ECL: Expected credit loss

Note: to be consistent with Financial Statements, it must be recorded from the beginning of the year instead of the quarter

Balance at

09/30/2020

227

10,660

1,171

12,058

Allowances for the Bank in 3Q20 reflect expected losses driven by the adoption of the IFRS 9 standards as of January 1, 2020, except for debt instruments issued by the nonfinancial government sector which were temporarily excluded from the scope of such standard.

The financial statements of consolidated subsidiaries PSA and VWFS were prepared considering the financial reporting framework set forth by the BCRA for Group "B" financial institutions, without considering the model established in paragraph 5.5. "Impairment" of IFRS 9 for fiscal years commencing on and after January 1, 2021. As of October 2020, PSA and VWFS will be part of Group "C" financial institutions, keeping the accounting framework of Group "B" financial institutions.

Public sector exposure

Net Public Debt Exposure

BBVA ARG Consolidated

Chg (%)

In millions AR$ - Inflation adjusted

3Q20

2Q20

3Q19

QoQ

YoY

Treasury and Government securities

25,115

19,150

24,567

31.1%

2.2%

Treasury and National Government

25,115

19,150

24,535

31.1%

2.4%

National Treasury Public Debt in AR$

25,111

10,610

11,893

136.7%

111.2%

National Treasury Public Debt in dollars

3

(0)

336

n.m

(99.1%)

National Treasury Public Debt USD-Linked

-

8,541

12,306

(100.0%)

(100.0%)

Provinces

-

-

32

N/A

(100.0%)

Loans to the Public Sector

N/A

N/A

AR$ Subtotal

25,111

10,610

11,925

136.7%

110.6%

USD Subtotal*

3

8,541

12,642

(100.0%)

(100.0%)

Total Public Debt Exposure

25,115

19,150

24,567

31.1%

2.2%

B.C.R.A. Exposure

111,868

120,125

82,437

(6.9%)

35.7%

Instruments

92,869

83,235

73,331

11.6%

26.6%

LELIQs

92,869

83,235

73,331

11.6%

26.6%

Loans to the B.C.R.A.

-

12

-

(100.0%)

N/A

Repo

18,999

36,890

9,106

(48.5%)

108.6%

B.C.R.A. - AR$

18,999

36,890

9,106

(48.5%)

108.6%

%Public sector exposure (Excl. B.C.R.A.) / Total assets

4.3%

3.3%

4.2%

98 bps

5 bps

*Includes USD-linked Treasury public debt in AR$

Public sector exposure (excluding BCRA) totaled $25.1 billion, growing 31.1% or $6.0 billion QoQ, and 2.2% or $548 million YoY.

It is important to mention that on July 17, 2020, the Bank participated in the voluntary swap offered by the National Treasury, and swapped the whole of its remaining position (equivalent to 60% of its original position) in U.S. dollar linked notes (LELINK) in exchange of a bundle of sovereign bonds in pesos adjusted by inflation (BONCER) maturing in 2023 and 2024.

Short-term liquidity is allocated in BCRA instruments, which grew 11.6% or $9.6 billion compared to 2Q20, and 26.6% or $19.5 billion compared to 3Q19.

Exposure to the public sector (excluding BCRA) represents 4.3% of total assets.

- 12 -

Deposits

Total Deposits

BBVA ARG Consolidated

Chg (%)

In millions AR$ - Inflation adjusted

3Q20

2Q20

3Q19

QoQ

YoY

Total deposits

399,607

401,833

375,088

(0.6%)

6.5%

Non-financial Public Sector

5,929

5,882

3,610

0.8%

64.2%

Financial Sector

550

323

510

70.4%

7.8%

Non-financial private sector and residents abroad

393,128

395,629

370,968

(0.6%)

6.0%

Non-financial private sector and residents abroad - AR$

279,409

273,341

208,813

2.2%

33.8%

Checking accounts

84,301

80,970

57,938

4.1%

45.5%

Savings accounts

72,204

84,851

50,358

(14.9%)

43.4%

Time deposits

101,542

101,585

96,417

(0.0%)

5.3%

Investment accounts

18,113

2,119

-

n.m

N/A

Other

3,248

3,815

4,100

(14.9%)

(20.8%)

Non-financial private sector and res. abroad - Foreign Currency

113,720

122,288

162,155

(7.0%)

(29.9%)

Checking accounts

23

19

25

25.2%

(6.4%)

Savings accounts

95,643

100,872

137,291

(5.2%)

(30.3%)

Time deposits

15,612

18,647

21,765

(16.3%)

(28.3%)

Other

2,441

2,750

3,074

(11.2%)

(20.6%)

% of total portfolio in the private sector in AR$

71.1%

69.1%

56.3%

198 bps

1,478 bps

% of total portfolio in the private sector in Foregin Currency

28.9%

30.9%

43.7%

(198)bps

(1,478)bps

% of time deposits with UVA adjustments

1.0%

2.1%

2.7%

(104)bps

(168)bps

During 3Q20, total deposits were $399.6 billion, recording a slight decline of 0.6% or $2.2 billion QoQ, and growing 6.5% or $24.5 billion YoY.

Private sector deposits in 3Q20 were $393.1 billion, declining 0.6% or $2.5 billion QoQ, and increasing 6.0% or $22.2 billion YoY.

Private non-financial sector deposits in pesos totaled $279.4 billion, growing 2.2% or $6.1 billion QoQ, and 33.8% or $70.6 billion YoY. This is mainly explained by the strong growth in time deposits, especially of Investment accounts (transferable investment certificates with early withdrawal option), and to a lesser extent, by the growth in checking accounts. This offsets the quarterly fall in saving accounts, partially explained by a reclassification of money market mutual fund operations, previously considered in special checking accounts (included in saving accounts) and now included in checking accounts, abiding BCRA regulation in Communication "A" 7064.

Private non-financial sector deposits in foreign currency expressed in pesos fell 7.0% or $8.6 billion QoQ and 29.9% or $48.4 billion YoY. Measured in U.S. dollars, these deposits fell 14.0% QoQ and 60.9% YoY. Towards the end of the quarter, U.S. dollar deposit withdrawal increased as a consequence of the enhanced restrictions over the FX market. After operability was reestablished under new BCRA regulations, foreign currency deposit withdrawal slowed down, returning to levels observed during previous months.

Private Deposits

BBVA ARG Consolidated

Chg (%)

In millions AR$ - Inflation adjusted

3Q20

2Q20

3Q19

QoQ

YoY

Non-financial private sector and residents abroad

393,128

395,629

370,968

(0.6%)

6.0%

Sight deposits

257,861

273,277

252,786

(5.6%)

2.0%

Checking accounts

84,324

80,989

57,963

4.1%

45.5%

Savings accounts

167,848

185,723

187,649

(9.6%)

(10.6%)

Other

5,689

6,565

7,174

(13.3%)

(20.7%)

Time deposits

135,268

122,351

118,182

10.6%

14.5%

Time deposits

117,154

120,233

118,182

(2.6%)

(0.9%)

Investment accounts

18,113

2,119

-

n.m

N/A

% of sight deposits over total deposits

66.1%

69.6%

68.5%

(340)bps

(234)bps

% of time deposits over total deposits

33.9%

30.4%

31.5%

340 bps

234 bps

As of 3Q20, the Bank's transactional deposits (checking accounts and savings accounts) represented 63.1% of total non-financial private deposits, totaling $252.2 billion, versus 66.4% in 2Q20.

- 13 -

Market Share - Private sector Deposits

BBVA ARG

Chg (%)

In %

3Q20

2Q20

3Q19

QoQ

YoY

Private sector Deposits - Consolidated*

6.48%

6.50%

7.14%

(2)bps

(66)bps

Based on daily BCRA information. Capital balance as of the last day of each quarter. * Consolidates PSA, VWFS & Rombo

Other sources of funds

Other sources of funds

BBVA ARG Consolidated

Chg (%)

In millions AR$ - Inflation adjusted

3Q20

2Q20

3Q19

QoQ

YoY

Other sources of funds

112,135

110,457

116,138

1.5%

(3.4%)

Central Bank

30

121

15

(75.5%)

97.9%

Banks and international organizations

-

-

6,438

N/A

N/A

Financing received from local financial institutions

3,327

5,610

7,306

(40.7%)

(54.5%)

Corporate bonds

4,101

4,525

11,935

(9.4%)

(65.6%)

Equity

104,677

100,202

90,444

4.5%

15.7%

In 3Q20, other sources of funds totaled $112.1 billion, growing 1.5% or $1.7 billion QoQ, and falling 3.4% or $4.0 billion YoY.

The 4.5% or $4.5 billion increase in Equity is explained by the 3Q20 results, which more than offset the repurchase of corporate bonds during the quarter.

4Q19 equity evolution can be observed in the table below, going from historical values to current values through the implementation of IAS 29 rule.

Equity - Evolution

In millions AR$

4Q19

Equity before IAS 29 application

65,317

Total impact of IAS 29 application (1)

14,041

Equity in terms of 12/31/2019 units

77,934

Adjustment from reexpression of equity at current units 09/30/2020 (2)

17,371

Equity in terms of 09/30/2020 units

95,305

Total recognized in Retained Earnings (1)+(2)

31,412

Liquid assets

Total Liquid Assets

BBVA ARG Consolidated

Chg (%)

In millions AR$ - Inflation adjusted

3Q20

2Q20

3Q19

QoQ

YoY

Total liquid assets

263,914

256,152

231,512

3.0%

14.0%

Cash and deposits in banks

133,178

121,139

128,736

9.9%

3.5%

Debt securities at fair value through profit or loss

5,922

10,383

6,997

(43.0%)

(15.4%)

Government securities

166

0

222

n.m

(25.4%)

Liquidity bills of B. C. R. A.

5,756

10,382

6,775

(44.6%)

(15.0%)

Net REPO transactions

18,999

36,890

9,106

(48.5%)

108.6%

Other debt securities

105,815

87,740

86,673

20.6%

22.1%

Government securities

18,702

14,888

20,036

25.6%

(6.7%)

Liquidity bills of B. C. R. A.

87,113

72,853

66,557

19.6%

30.9%

Liquid assets / Total Deposits

66.0%

63.7%

61.7%

230 pbs

432 pbs

In 3Q20, liquid assets were $263.9 billion, increasing 3.0% or $7.8 billion compared to 2Q20, and 14.0% or $32.4 billion compared to 3Q19.

During the quarter, growth in government securities and LELIQ stands out with a 25.6% and a 19.6% increase respectively, while net REPO transactions decreased by 48.5%.

In 3Q20, the liquidity ratio (liquid assets / total deposits) reached 66.0%. Liquidity ratio in local and foreign currency reached 58.1% and 86.0% respectively.

- 14 -

Solvency

Minimum capital requirement

BBVA ARG Consolidated

Chg (%)

In millions AR$ - Inflation adjusted

3Q20

2Q20

3Q19

QoQ

YoY

Minimum capital requirement

33,547

34,147

34,848

(1.8%)

(3.7%)

Credit risk

24,808

25,231

26,780

(1.7%)

(7.4%)

Market risk

278

618

457

(55.0%)

(39.2%)

Operational risk

8,461

8,298

7,611

2.0%

11.2%

Integrated Capital - RPC (1)*

95,432

91,391

84,070

4.4%

13.5%

Ordinary Capital Level 1 ( COn1)

107,852

103,292

91,326

4.4%

18.1%

Deductible items COn1

(14,982)

(14,578)

(10,071)

2.8%

48.8%

Additional Capital Level 2 (COn2)

2,562

2,677

2,815

(4.3%)

(9.0%)

Excess Capital

Integration excess

61,885

57,244

49,222

8.1%

25.7%

Excess as % of minimum capital requirement

184.5%

167.6%

141.25%

1,690 bps

4,325 bps

Risk-weighted assets (RWA, according to B.C.R.A. regulation) (2)

410,318

417,656

425,843

(1.8%)

(3.6%)

Regulatory Capital Ratio (1)/(2)

23.3%

21.9%

19.7%

140 bps

360 bps

TIER I Capital Ratio (Ordinary Capital Level 1/ RWA)

22.6%

21.2%

19.1%

140 bps

350 bps

* RPC includes 100% of quarterly results

BBVA Argentina continues to show strong solvency indicators on 3Q20. Capital ratio reached 23.3%. Tier 1 ratio was 22.6% and capital excess over regulatory requirement was $61.9 billion.

These ratios improved in spite of BCRA regulation: Communication "A" 6940, regarding exposure to individuals and companies purchasing touristic services abroad in instalments, and Communication "A" 7018, regarding clients with agricultural activity that stockpile more than 5% of their annual harvest.

- 15 -

Other events

Relevant Events

  • As of September 3, 2020, BBVA Argentina's Board of Directors has decided to make front line management modifications, acknowledging the retirement of Mr. Gustavo Siciliano, Engineering & Data director, and as a consequence the designation of Mr. Leandro Alvarez at said position.
  • As of September 29, 2020, BBVA Argentina has been notified of a class action lawsuit filed by the Asociación por la Defensa de Usuarios y Consumidores (ADUC). This Association, which represents consumers, questions the interest rates applicable to time deposits with automatic renewal option.
  • As of October 8, 2020, the Board has called for a General Extraordinary Shareholders Meeting to be held on November 20, 2020, to consider the distribution of a complementary cash dividend for the sum of $12 billion, through the partial write-off of the Optional Reserve for future distribution of earnings, with the aim of increasing the $2.5 billion cash dividend approved by the General Shareholders Meeting on May 15, 2020, subject to BCRA approval.
  • As of November 20, 2020, the General Extraordinary Shareholders Meeting has approved the distribution of a complementary cash dividend for the sum of $12 billion or a lower amount to be determined by the BCRA. This distribution is subject to BCRA approval.

Corporate bond payments and issuances during 3Q20

  • As of August 10, 2020, the Bank completed quarterly coupon payments on corporate bond Class 25 for $37.4 million.
  • As of August 28, 2020, the Bank completed quarterly coupon and capital payments on corporate bond Class 27 for $97.1 million and $1.09 billion respectively.
  • As of September 28, 2020, the Bank completed quarterly coupon payments on corporate bond Class 24 for $46.7 million.

Digital transformation

Digitalization continued to accelerate during the third quarter of 2020. Active digital clients reached 1.9 million with a 71% penetration over total active clients (2.7 million), versus a penetration of 64.7% in 3Q19.

Active mobile clients were 1.6 million, representing a 59% penetration in 3Q20, versus a penetration of 50.3% in 3Q19.

On 3Q20, retail digital sales measured in units reached 80% of total sales (vs. 64% in 3Q19) and represent 69% of the Banks total sales measured in monetary value (vs. 54% in 3Q19).

Digital3 and mobile3 transactions increased 72% in 3Q20 YoY. For the first time, the use of these channels outweighs that of traditional ones, revealing the digital transformation.

Moreover, digital branches have been launched in October 2020. These combine several features between human capital and structure facilities to promote client self-service, aiming to digitalize and migrate clients to remote channels. Strategic pillars of these branches are: the mixed roles of customer service staff

3 Includes online banking and mobile, Net Cash online y mobile, and non-bank correspondents.

- 16 -

oriented to guide the client, the availability of digital tools, the limitation of teller service for specific transactions, and the availability of a customer service protocol where the importance of each role and client dynamics are detailed.

COVID 19 - September 2020 update

Financing (including regulatory)

Retail

  • Penalties on unpaid checking account charges, and closure and disabling of accounts, were suspended until December 31, 2020.
  • Credits on cash withdrawal costs at own and other banks' ATMs will continue until December 31, 2020.
  • Loan maturities until December 31, 2020 are included for the deferral on unpaid instalments on mortgage, pledge and consumer loans.

Commercial

  • As of September 30, 2020, BBVA Argentina has disbursed more than $37 billion in loans to more than 10.400 SMEs, to be allocated in payroll payments, discounted documents and working capital, at a 24% nominal annual rate.
  • BBVA Argentina has granted a special credit line for payroll payments for SMEs, which includes a 24% nominal annual rate, in a 12 month period of maturity, and a grace period of 3 months, backed by the Fondo de Garantías Argentino (FoGAr) warrants. On this line, BBVA Argentina has disbursed more than $1.8 billion as of September 30, 2020.
  • The Bank is working on credit lines for self-employed individuals at a Zero rate, promoted by the National Government. As of September 30, 2020, the Bank has disbursed more than $7 million on this line. Additionally, "Culture zero rate" credits have been granted to individuals with activity in the cultural sector, for more than $11 million as of September 30, 2020.
  • A "Credit at subsidized rate" line has been launched for any company who requests it (as long as they are part of the eligible beneficiaries selected by the Federal Administration of Public Revenues or AFIP). As of September 30, 2020, more than $180 million have been granted on this line.

- 17 -

Main Regulatory Changes

Foreign Currency Global Net Position ("PGNME"). Public security voluntary exchange. (Communication "A" 7093, 08/27/2020). The BCRA grants the same treatment, in terms of PGNME, to securities received in exchange for USD denominated National treasury bonds, as the increase in position enables an increment of up to 30% of the net positive position.

Credit card payment deadlines. (Communication "A" 7095, 08/27/2020). The BCRA stated that financial institutions must automatically rollover unpaid credit card balances up to one year (between September 1st and September 30, 2020), with a 3 month grace period, 9 monthly equal consecutive instalments, at a nominal interest rate of 40% (previously 43%, prev. 49%, and prev. 55% until April 1, 2020).

Non-financial public sector financing. (Communication "A" 7097, 08/27/2020). The BCRA stated on the limits on non-financialpublic sector financing, that the unutilized quota of the basic global limit - established for the total of granted financing to non-financialpublic sector in 75% of the regulatory capital (known as Responsabilidad Patrimonial Computable or RPC), can be re-allocatedto the sovereign non- financial public sector (previously 50% of the RPC).

PGNME. USD-linked time deposits. (Communication "A" 7101, 09/10/2020). The BCRA determines that export prefinancings for which its foreign currency funding is matched by liabilities linked to the evolution of such currency (for the same amount), can be deducted from the calculation of the cash position within the Net positive Global Currency Position. USD-linkedliabilities that exceed that position are not to be considered in such deduction.

Foreign currency savings account opening. Income requirements. (Communication "A" 7105, 09/15/2020). The BCRA states that prior to the opening of a foreign currency savings account, financial institutions must collect evidence that the client has an income or assets consistent with foreign currency savings, not being admissible that he or she should be a beneficiary of a social plan or program.

Foreign currency purchase restrictions. (Communication "A" 7106, 09/15/2020). As of September 16, 2020, the BCRA stated: As of September 1, 2020, debit and credit card consumption abroad with debit on local accounts in pesos, and foreign currency purchased by individuals for the payment of obligations between residents, including payments of foreign currency consumptions through credit cards, will be deducted as of the following month, from the USD 200 cap. Those who are beneficiaries of credit support related to the pandemic will not be able, until the total cancellation of credits or while the support stands, to have access to the foreign exchange market or sell securities that settle in foreign currency, or transfer them to custodians abroad. Those with programmed capital amortizations due between October 15, 2020 and March 31, 2021, related to financial debts abroad or public securities denominated in foreign currency, must present to the BCRA a detailed refinancing plan under certain criteria.

COVID-19 extended measures. (Communication "A" 7107. 09/17/2020). The BCRA extended until December 31, 2020, the regulation stating that financial institutions cannot charge fees for transactions done through ATMs (previously until June 30 and extended until September 30). It is also until that date that financial institutions cannot charge punitive interest over unpaid credits, and ratifies unpaid instalments deferral to maturity, considering accrual of a compensatory interest rate. This regulation does not include credit card financing. Regulation that concedes a 60 day waiver on late-paymentperiods for stages 1, 2 and 3 is also extended until December 31, 2020 (Communication "A" 6938).

Foreign currency account transfers modification. (Communication "A" 7112. 09/24/2020). The BCRA modifies Communication "A" 7105 stating that all transfers from foreign currency accounts will proceed without need of prior validation, also applicable for foreign currency saving accounts opening and crediting of funds in already activated accounts. (The mentioned regulation only enabled transfers abroad).

- 18 -

Minimum cash requirement. Ahora 12 program. (Communication "A" 7114. 09/24/2020). The BCRA decided to increase to 50% (previously 35%) the deduction from reserve requirements in pesos applicable on Ahora 12 program financings, for financing granted as of October 1, 2020.

UVA loan instalment value freeze. (Decree 767/2020. 09/25/2020). Periods set on items 2°, 3°, 4° and 5° on Decree N° 319/20 are extended until January 31, 2021. This includes the fixing to March 2020 values of UVA mortgage and pledge loan instalments and the suspension of mortgage foreclosures.

LELIQ position reduction. (Communication "A" 7122. 10/01/2020). As of October 2, 2020, financial institutions must reduce in 20 percentage points their net excess position in LELIQ versus their monthly average of daily balances recorded in September 2020. To comply, they shall reduce the excess net position through the gradual maturity of the securities. Along this regulation but in line with it, the BCRA decided to increase the REPO rate from 19% t0 24%.

LELIQ rate modification and passive REPO BCRA rate. (Press release. 10/08/2020). The BCRA decided to increase to 27% the passive REPO BCRA rate (from 24% and previously 19%) and take the LELIQ rate to 37%. It also determined that companies can access the foreign exchange market 30 days prior to financial debt maturities to cancel capital and coupon payments. They can also have access when the pre-cancellationis done within the frame of a securities exchange restructuring process.

Time deposits minimum rate. (Communication "A" 7131. 10/08/2020). As of October 13, 2020, the BCRA increased the percentages applicable to the average rates of LELIQ used to set the minimum rates for time deposits of less than $1 million to 89.35% (previously 87%). Additionally, as of the same date, the coefficient that determines the fixed rate of pre-cancellationof UVA-linkedtime deposits (with early termination option) was increased to 0.7703.

Minimum cash requirements. Deduction exclusion. (Communication "A" 7132. 10/09/2020). The BCRA informed that for financings that are disbursed as of October 9, 2020, financial institutions will not be able to deduct from cash requirements financings granted to individuals or companies that (i) belong to activity sectors that are not eligible for the "Programa de Asistencia de Emergencia al Trabajo y la Producción" (ATP) social program benefits and/or (ii) have imported consumer goods after March 19, 2020, unless these were medical products and/or supplies.

Increase in REPO rate and decrease in LELIQ rate. (Press release. 10/15/2020). The BCRA decided to increase the one-daypassive REPO nominal annual rate from 27% to 30%, implying an increment of three percentage points, and offer 7-dayREPOs at a nominal annual rate of 33%. In line with this, the LELIQ rate was set at 36%.

Time deposits minimum rate. (Communication "A" 7139. 10/15/2020). The BCRA decided to increase, for time deposits granted as of October 16, 2020, the percentages applicable to the average rates of LELIQ used to set the minimum rates for time deposits of less than $1 million to 91.89% (previously 89.35%). For time deposits granted as of October 21, 2020, the increment goes up to 94.44% and the coefficient that determines the fixed rate of pre-cancellationof UVA-linkedtime deposits (with early termination option) was increased to 0.7917. This is equivalent to a 34% nominal annual rate for individuals with time deposits of less than $1 million and 32% for the rest.

New credit lines. (Communication "A" 7140. 10/15/2020). The BCRA stated that financial institutions shall grant, within the frame of the ATP social program created by the Decree N°332/2020- financing for a maximum limit equivalent to the amount resulting from the number of employees (F.931) multiplied by the minimum wage (Salario Mínimo Vital y Movil) plus a 20%, to the SMEs in a list provided by the Federal Administration of Public Revenues (AFIP), and that will be able to rely on a warrant to be arranged by FOGAR, and as of November 1, 2020, can be deducted of reserve requirements (40%).

- 19 -

Moreover, credit lines to SMEs are launched to (i) finance investment projects aimed for the purchase of capital assets and/or the construction of facilities necessary for the manufacturing of goods and/or services, at a 30% nominal annual rate; and (ii) for working capital and discounted instruments to SMEs at 35%. Financial institutions affected by this regulation must comprise under these financings, as of October 16, 2020 and until March 31, 2021, the equivalent to 7.5% of their non-financial private sector deposits in pesos (as a monthly average of daily balances of September 2020). For the financing of investment projects, this limit must be 30% of the 7.5% previously stated.

Prior approval for branch closure. (Communication "A" 7147. 10/22/2020). Financial institutions must, until March 31, 2021, require prior approval by the BCRA to proceed to the transfer or closure of branches.

REPO rate. (Communication "C" 88436. 10/29/2020). The BCRA has increased the 1-dayREPO rate from 30% to 31% and the 7-dayREPO rate from 33% to 34.5%.

End of legal requirement in credit granting. (Communication "A" 7157. 11/05/2020). The BCRA revokes the requirement of granting credits to SMEs established in Communication "A" 7140 (ATP program) and the possibility of deducting them from reserve requirements. It states that financial institutions can only use for such deduction what is stated in item 1.5.6. of Reserve Requirement regulations on Credits at subsidized rate for Companies, granted as of November 6, 2020 (24% of credits granted at 27% nominal annual rate and 7% of credits granted at 33% nominal annual rate). Zero rate credits cannot be deducted from reserve requirements as of such date.

Fee increments. (Communication "A" 7158. 11/05/2020). The BCRA stated that until February 28, 2020, financial institutions cannot communicate fee increases greater than 9% for January 2021, and 9% for February 2021 for fees on i) Savings accounts: additional debit card issuance; replacement of stolen or lost debit cards; ATM use (other than the Bank's, the Bank network's, local or abroad) and cash withdrawal services at points of purchase. Ii) Credit cards: issuance services, renewal, maintenance; replacement or reprinting of stolen or lost cards and additional cards.

Fees. Further remarks. (Communication "B" 12089. 11/09/2020). The BCRA clarifies that the fee increments mentioned in Communication "A" 7158 can be applied only 60 days after being informed to clients. This implies that the nearest date of application of such increments are the first days of February 2021. Consequently, monthly or other periodicity charges will be able to be reflected completely as of March.

Time deposits minimum rate. Modification. (Communication "A" 7160. 11/12/2020). The BCRA decided to increase, for time deposits granted as of November 13, 2020, the percentages applicable to the average rates of LELIQ used to set the minimum rates for time deposits of less than $1 million to 102.78% (previously 94.44%). For the rest of time deposits this percentage will be 94.44% (prev. 88.89%). For time deposits granted as of November 18, 2020, for time deposits of less than $1 million, the applicable rate over LELIQ will be 97.37% (89.48% for the rest).

The coefficient that determines the fixed rate of pre-cancellation of UVA-linked time deposits (with early termination option) granted as of November 13, 2020, was increased to0.8472 (from 0.7917). For the ones granted as of November 18, 2020, the coefficient will be 0.8026.

Additionally, as of November 13, 2020, financial institutions that keep time deposits to the non-financial private sector in pesos below 10% of total deposits in pesos (monthly average of daily balances of the previous month, considering only capital balances without interests or adjustments) will not be able to: (i) buy LELIQ for their excess position (ii) do 7-day REPOs with the BCRA.

SMEs productive investment credit lines. Reserve requirements. (Communication "A" 7161. 12/11/2020). The BCRA states that as of November 1, 2020, it grants a reduction in the average reserve

- 20 -

requirement in pesos for an amount of 14% of financings considered in item 4.1. of "SMEs productive investment credit line" regulation, granted at a nominal annual rate of up to 30%. As of November 13, 2020, financings to SMEs that have imported consumer goods after March 19, 2020, can be considered within this credit line.

Increase in REPO and LELIQ rates. (Communication "C" 88548. 11/13/2020). The BCRA has increased the one-daypassive REPO rate from 31% to 32% and the 7-dayrate from 34.5% to 36.5% Additional to this regulation, the BCRA decided to increase the LELIQ rate from 37% to 38%.

Layoff ban. Extension. (Decree 761/2020 and Decree 891/2020. 09/24/2020 and 11/16/2020). The Executive Power extends the ban on wrongful dismissals and layoffs for the period of 60 days counted as of the expiry period on the Decree N° 761/20.

Glossary

Active clients: holders of at least one active product. An active product is in most cases a product with at least "one movement" in the last 3 months, or a minimum balance.

Cost of Risk (accumulated): Year to date accumulated loan loss allowances / Average total loans.

Average total loans: average between previous year-end Total loans and other financing and current period Total loans and other financing.

Cost of Risk (quarterly): Current period Loan loss allowances / Average total loans. Average total loans: average between previous quarter-end Total loans and other financing and current period Total loans and other financing.

Coverage ratio: Quarterly allowances under the Expected Credit Loss model / total non-performing portfolio

Digital clients: we consider a customer to be an active user of online banking when they have been logged at least once within the last three months using the internet or a cell phone and SMS banking.

Efficiency ratio (excl. inflation adjustments, accumulated): Accumulated (Personnel benefits+ Administrative expenses + Depreciation & Amortization) / Accumulated (Net Interest Income + Net Fee Income + Net Income from measurement of Financial Instruments at Fair Value through P&L + Net income from write-downof assets at amortized cost and at fair value through OCI (excl. Monetary position adjustment) + Foreign exchange and gold gains + Other net operating income)

Efficiency ratio (excl. inflation adjustments, quarterly): (Personnel benefits+ Administrative expenses

  • Depreciation & Amortization) / (Net Interest Income + Net Fee Income + Net Income from measurement of Financial Instruments at Fair Value through P&L + Net income from write-down of assets at amortized cost and at fair value through OCI (excl. Monetary position adjustment) + Foreign exchange and gold gains
  • Other net operating income)

Efficiency ratio (accumulated): Accumulated (Personnel benefits+ Administrative expenses + Depreciation & Amortization) / Accumulated (Net Interest Income + Net Fee Income + Net Income from measurement of Financial Instruments at Fair Value through P&L + Net income from write-down of assets at amortized cost and at fair value through OCI + Foreign exchange and gold gains + Other net operating income+ Income from net monetary position)

Efficiency ratio (quarterly): (Personnel benefits+ Administrative expenses + Depreciation & Amortization) / (Net Interest Income + Net Fee Income + Net Income from measurement of Financial

- 21 -

Instruments at Fair Value through P&L + Net income from write-down of assets at amortized cost and at fair value through OCI + Foreign exchange and gold gains + Other net operating income+ Income from net monetary position)

Liquidity Ratio: (Cash and deposits in banks + Debt securities at fair value through P&L (Excl. Private securities) + Net REPO transactions + Other debt securities (Excl. Private securities)) / Total Deposits

Mobile clients: customers who have been active in online banking at least once in the last three months using a mobile device.

Net Interest Margin (NIM) - (quarterly): Quarterly Net Interest Income / Average quarterly interest- earning assets

Public Sector Exposure (excl. BCRA): (National and Provincial Government public debt + Loans to the public sector + REPO transactions) / Total Assets

ROA (accumulated): Attributable Net Income of the period / Total Average Assets. Total Average Assets is calculated as the average between total assets on December of the previous year and total assets in the current period, expressed in local currency.

ROA (quarterly): Attributable Net Income of the period / Total Average Assets. Total Average Assets is calculated as the average between total assets on the previous quarter-end and total assets in the current period, expressed in local currency

ROE (accumulated): Attributable Net Income of the period / Average Equity. Average Equity is calculated as the average between equity in December of the previous year and equity in the current period, expressed in local currency.

ROE (quarterly): Attributable Net Income of the period / Average Equity. Average Equity is calculated as the average between equity on the previous quarter end and equity in the current period, expressed in local currency.

Spread: (Quarterly Interest Income / Quarterly average Interest-earning Assets) - (Quarterly Interest Expenses / Quarterly average interest-bearing liabilities)

- 22 -

Balance sheet

Balance Sheet

BBVA ARG Consolidated

Chg (%)

Proforma (1)

In millions AR$ - Inflation adjusted

3Q20

2Q20

3Q19

QoQ

YoY

3Q20

Assets

Cash and deposits in banks

133,178

121,139

128,736

9.9%

3.5%

133,017

Cash

39,357

54,332

38,608

(27.6%)

1.9%

39,357

Financial institutions and correspondents

93,821

66,807

90,128

40.4%

4.1%

93,660

B.C.R.A

89,619

62,348

80,830

43.7%

10.9%

89,571

Other local and foreign financial institutions

4,202

4,459

9,299

(5.8%)

(54.8%)

4,088

Debt securities at fair value through profit or loss

6,038

10,502

7,074

(42.5%)

(14.7%)

6,038

Derivatives

1,411

1,138

3,563

24.0%

(60.4%)

1,411

Repo transactions

18,999

36,890

9,106

(48.5%)

108.6%

18,999

Other financial assets

12,427

6,865

11,197

81.0%

11.0%

12,357

Loans and other financing

250,920

261,845

281,088

(4.2%)

(10.7%)

240,140

Non-financial public sector

0

0

1

134.5%

(40.5%)

0

B.C.R.A

-

-

-

N/A

N/A

-

Other financial institutions

2,948

3,786

5,873

(22.1%)

(49.8%)

6,398

Non-financial private sector and residents abroad

247,971

258,058

275,215

(3.9%)

(9.9%)

233,742

Other debt securities

105,815

87,740

86,673

20.6%

22.1%

105,815

Financial assets pledged as collateral

14,539

11,572

11,342

25.6%

28.2%

14,538

Current income tax assets

5

10

1

(47.5%)

n.m

5

Investments in equity instruments

1,764

1,943

2,562

(9.2%)

(31.1%)

1,764

Investments in subsidiaries and associates

1,323

1,323

442

0.0%

199.5%

3,368

Property and equipment

30,143

30,434

34,434

(1.0%)

(12.5%)

30,101

Intangible assets

1,295

1,149

1,085

12.7%

19.4%

1,294

Deferred income tax assets

5,732

5,685

2,121

0.8%

170.2%

5,284

Other non-financial assets

6,043

5,137

3,675

17.6%

64.5%

5,928

Non-current assets held for sale

203

203

203

-

(0.0%)

203

Total Assets

589,836

583,575

583,301

1.1%

1.1%

580,262

Liabilities

Deposits

399,607

401,833

375,088

(0.6%)

6.5%

398,147

Non-financial public sector

5,929

5,882

3,610

0.8%

64.2%

5,929

Financial sector

550

323

510

70.4%

7.8%

610

Non-financial private sector and residents abroad

393,128

395,629

370,968

(0.6%)

6.0%

391,608

Liabilities at fair value through profit or loss

-

-

59

N/A

(100.0%)

-

Derivatives

36

247

5,994

(85.5%)

(99.4%)

36

Other financial liabilities

38,630

30,424

43,185

27.0%

(10.5%)

38,075

Financing received from the B.C.R.A. and other financial institutions

3,357

5,489

13,759

(38.8%)

(75.6%)

580

Corporate bonds issued

4,101

4,525

11,935

(9.4%)

(65.6%)

2,026

Current income tax liabilities

2,878

3,486

7,159

(17.4%)

(59.8%)

2,782

Provisions

10,481

11,842

11,441

(11.5%)

(8.4%)

10,435

Deferred income tax liabilities

18

5

2

288.1%

n.m

18

Other non-financial liabilities

24,038

23,508

20,843

2.3%

15.3%

23,464

Total Liabilities

483,145

481,358

489,465

0.4%

(1.3%)

475,562

Equity

Share Capital

613

613

613

-

0.0%

613

Non-capitalized contributions

23,702

23,702

23,690

(0.0%)

0.0%

23,702

Capital adjustments

16,682

16,682

16,682

(0.0%)

0.0%

16,682

Reserves

88,759

88,759

53,613

(0.0%)

65.6%

88,759

Retained earnings

(29,038)

(29,038)

(16,435)

0.0%

(76.7%)

(29,038)

Other accumulated comprehensive income

(5,070)

(6,710)

(10,211)

24.5%

50.4%

(5,070)

Income for the period

9,029

6,194

22,492

45.8%

(59.9%)

9,029

Equity attributable to owners of the Parent

104,677

100,202

90,444

4.5%

15.7%

104,677

Equity attributable to non-controlling interests

2,014

2,015

3,392

(0.1%)

(40.6%)

22

Total Equity

106,691

102,217

93,836

4.4%

13.7%

104,699

Total Liabilities and Equity

589,836

583,575

583,301

1.1%

1.1%

580,262

(1) Excludes consolidation with PSA and VWFS.

- 23 -

Balance sheet - Last five quarters

Balance Sheet

BBVA ARG Consolidated

In millions AR$ - Inflation adjusted

3Q20

2Q20

1Q20

4Q19

3Q19

Assets

Cash and deposits in banks

133,178

121,139

166,212

191,088

128,736

Cash

39,357

54,332

42,343

57,138

38,608

Financial institutions and correspondents

93,821

66,807

123,868

133,950

90,128

B.C.R.A

89,619

62,348

118,886

131,462

80,830

Other local and foreign financial institutions

4,202

4,459

4,983

2,488

9,299

Debt securities at fair value through profit or loss

6,038

10,502

10,277

5,050

7,074

Derivatives

1,411

1,138

2,445

3,726

3,563

Repo transactions

18,999

36,890

3,632

-

9,106

Other financial assets

12,427

6,865

21,092

5,736

11,197

Loans and other financing

250,920

261,845

247,853

238,801

281,088

Non-financial public sector

0

0

1

1

1

B.C.R.A

-

-

13

21

-

Other financial institutions

2,948

3,786

5,739

6,227

5,873

Non-financial private sector and residents abroad

247,971

258,058

242,100

232,552

275,215

Other debt securities

105,815

87,740

73,460

55,248

86,673

Financial assets pledged as collateral

14,539

11,572

7,731

7,244

11,342

Current income tax assets

5

10

0

32

1

Investments in equity instruments

1,764

1,943

2,055

2,514

2,562

Investments in subsidiaries and associates

1,323

1,323

1,278

1,267

442

Property and equipment

30,143

30,434

31,005

31,883

34,434

Intangible assets

1,295

1,149

1,043

954

1,085

Deferred income tax assets

5,732

5,685

8,413

5,832

2,121

Other non-financial assets

6,043

5,137

4,860

5,223

3,675

Non-current assets held for sale

203

203

203

203

203

Total Assets

589,836

583,575

581,560

554,801

583,301

Liabilities

Deposits

399,607

401,833

372,041

359,514

375,088

Non-financial public sector

5,929

5,882

3,940

3,593

3,610

Financial sector

550

323

325

218

510

Non-financial private sector and residents abroad

393,128

395,629

367,775

355,703

370,968

Liabilities at fair value through profit or loss

-

-

-

710

59

Derivatives

36

247

376

3,758

5,994

Other financial liabilities

38,630

30,424

48,587

35,250

43,185

Financing received from the B.C.R.A. and other financial institutions

3,357

5,489

4,115

7,519

13,759

Corporate bonds issued

4,101

4,525

8,506

8,950

11,935

Current income tax liabilities

2,878

3,486

13,134

9,869

7,159

Provisions

10,481

11,842

12,789

13,143

11,441

Deferred income tax liabilities

18

5

-

-

2

Other non-financial liabilities

24,038

23,508

21,305

20,781

20,843

Total Liabilities

483,145

481,358

480,853

459,496

489,465

Equity

Share Capital

613

613

613

613

613

Non-capitalized contributions

23,702

23,702

23,702

23,702

23,690

Capital adjustments

16,682

16,682

16,682

16,682

16,682

Reserves

88,759

88,759

53,592

53,591

53,613

Retained earnings

(29,038)

(29,038)

11,866

(20,511)

(16,435)

Other accumulated comprehensive income

(5,070)

(6,710)

(11,198)

(10,094)

(10,211)

Income for the period

9,029

6,194

3,493

29,393

22,492

Equity attributable to owners of the Parent

104,677

100,202

98,749

93,376

90,444

Equity attributable to non-controlling interests

2,014

2,015

1,958

1,929

3,392

Total Equity

106,691

102,217

100,707

95,305

93,836

Total Liabilities and Equity

589,836

583,575

581,560

554,801

583,301

(1) Excludes consolidation with PSA and VWFS.

- 24 -

Balance sheet - Foreign currency exposure

Foreign Currency Exposure

BBVA ARG Consolidated

Chg(%)

In millions AR$ - Inflation adjusted

3Q20

2Q20

3Q19

QoQ

YoY

Assets

Cash and deposits in banks

97,764

93,718

85,189

4.3%

14.8%

Debt securities at fair value through profit or loss

4

0

10

n.m

(65.2%)

Derivatives

10

-

-

N/A

N/A

Repos

-

-

7,734

N/A

(100.0%)

Other financial assets

2,012

2,009

507

0.1%

296.6%

Loans and other financing

26,174

35,368

91,853

(26.0%)

(71.5%)

Other financial institutions

366

1,269

762

(71.1%)

(52.0%)

Non-financial private sector and residents abroad

25,808

34,100

91,090

(24.3%)

(71.7%)

Other debt securities

-

4,515

15,457

(100.0%)

(100.0%)

Financial assets pledged as collateral

4,218

7,183

4,290

(41.3%)

(1.7%)

Investments in equity instruments

20

19

25

5.7%

(19.4%)

Total foreign currency assets

130,201

142,813

205,066

(8.8%)

(36.5%)

Liabilities

-

-

Deposits

116,778

124,866

185,792

(6.5%)

(37.1%)

Non-Financial Public Sector

2,973

2,493

3,720

19.2%

(20.1%)

Financial Sector

52

52

126

0.2%

(58.8%)

Non-financial private sector and residents abroad

113,753

122,321

181,946

(7.0%)

(37.5%)

Liabilities at fair value through profit or loss

-

-

227

N/A

(100.0%)

Other financial liabilities

10,598

8,454

12,359

25.4%

(14.2%)

Financing received from the B.C.R.A. and other financial institutions

553

585

4,485

(5.5%)

(87.7%)

Other non financial liabilities

1,120

958

1,387

16.9%

(19.3%)

Total foreign currency liabilities

129,049

134,863

204,250

(4.3%)

(36.8%)

Foreign Currency Net Position - AR$

1,152

7,949

816

(85.5%)

41.1%

Foreign Currency Net Position - USD

15

113

19

(86.6%)

(21.4%)

P&L

Income Statement

BBVA ARG Consolidated

Chg(%)

Proforma (1)

In millions AR$ - Inflation adjusted

3Q20

2Q20

3Q19

QoQ

YoY

3Q20

Interest income

26,114

24,052

39,003

8.6%

(33.0%)

24,956

Interest expense

(9,463)

(6,960)

(16,619)

(36.0%)

43.1%

(8,993)

Net interest income

16,652

17,092

22,384

(2.6%)

(25.6%)

15,963

Fee income

6,269

6,572

6,758

(4.6%)

(7.2%)

6,268

Fee expenses

(3,265)

(3,225)

(4,511)

(1.2%)

27.6%

(3,242)

Net fee income

3,005

3,347

2,247

(10.2%)

33.7%

3,026

Net income from financial instruments at fair value

886

1,359

2,339

(34.8%)

(62.1%)

886

Net loss from write-down of assets at amortized cost and fair value

(3,988)

(2,225)

5

(79.3%)

n.m

(3,988)

through OCI

Foreign exchange and gold gains

1,618

1,609

5,385

0.5%

(70.0%)

1,629

Other operating income

1,500

1,230

1,563

22.0%

(4.0%)

1,530

Loan loss allowances

(927)

(2,848)

(6,936)

67.4%

86.6%

(895)

Net operating income

18,744

19,562

26,986

(4.2%)

(30.5%)

18,150

Personnel benefits

(4,583)

(4,269)

(5,249)

(7.3%)

12.7%

(4,518)

Administrative expenses

(4,360)

(4,125)

(4,924)

(5.7%)

11.5%

(4,283)

Depreciation and amortization

(838)

(907)

(1,064)

7.7%

21.3%

(828)

Other operating expenses

(2,706)

(3,048)

(5,028)

11.2%

46.2%

(2,579)

Operating income

6,257

7,213

10,721

(13.2%)

(41.6%)

5,943

Income from associates and joint ventures

(14)

202

(48)

(106.8%)

71.2%

(9)

Income from net monetary position

(2,242)

(2,459)

(1,406)

8.9%

(59.4%)

(1,985)

Income before income tax

4,002

4,955

9,267

(19.2%)

(56.8%)

3,949

Income tax

(1,169)

(2,202)

(1,082)

46.9%

(8.0%)

(1,102)

Income for the period

2,833

2,753

8,185

2.9%

(65.4%)

2,847

Income for the period attributable to:

Owners of the parent

2,834

2,702

7,749

4.9%

(63.4%)

2,834

Non-controlling interests

(1)

51

436

(101.7%)

(100.2%)

13

Other comprehensive Income (2)

1,641

2,074

(7,044)

58.4%

141.4%

1,641

(1) Excludes consolidation with PSA and VWFS.

(2) Neto of Income Tax.

- 25 -

P&L - Last five quarters

Income Statement

BBVA ARG Consolidated

In millions AR$ - Inflation adjusted

3Q20

2Q20

1Q20

4Q19

3Q19

Interest income

26,114

24,052

27,921

32,822

39,003

Interest expense

(9,463)

(6,960)

(9,270)

(11,448)

(16,619)

Net interest income

16,652

17,092

18,651

21,374

22,384

Fee income

6,269

6,572

6,127

6,540

6,758

Fee expenses

(3,265)

(3,225)

(3,999)

(4,463)

(4,511)

Net fee income

3,005

3,347

2,128

2,077

2,247

Net income from financial instruments at fair value

886

1,359

1,135

1,361

2,339

Net loss from write-down of assets at amortized cost and fair value

(3,988)

(2,225)

(144)

(14)

5

through OCI

Foreign exchange and gold gains

1,618

1,609

1,404

3,518

5,385

Other operating income

1,500

1,230

1,179

1,339

1,563

Loan loss allowances

(927)

(2,848)

(1,842)

(4,965)

(6,936)

Net operating income

18,744

19,562

22,510

24,690

26,986

Personnel benefits

(4,583)

(4,269)

(5,036)

(5,233)

(5,249)

Administrative expenses

(4,360)

(4,125)

(4,072)

(4,784)

(4,924)

Depreciation and amortization

(838)

(907)

(933)

(1,937)

(1,064)

Other operating expenses

(2,706)

(3,048)

(3,530)

(7,106)

(5,028)

Operating income

6,257

7,213

8,939

5,629

10,721

Income from associates and joint ventures

(14)

202

31

24

(48)

Income from net monetary position

(2,242)

(2,459)

(2,976)

(2,233)

(1,406)

Income before income tax

4,002

4,955

5,993

3,420

9,267

Income tax

(1,169)

(2,202)

(2,468)

3,001

(1,082)

Income for the period

2,833

2,753

3,525

6,421

8,185

Income for the period attributable to:

-

Owners of the parent

2,834

2,702

3,493

6,901

7,749

Non-controlling interests

(1)

51

32

(480)

436

Other comprehensive Income (2)

1,641

2,074

1,309

280

(7,044)

  1. Excludes consolidation with PSA and VWFS.
  2. Neto of Income Tax

Ratios

Quarterly Annualized Ratios

BBVA ARG consolidated

Chg (bps)

In %

3Q20

2Q20

3Q19

QoQ

YoY

Profitability

Efficiency Ratio

66.1%

54.2%

25.4%

1,190

bps

4,068

bps

Efficiency Ratio (excl. Inflation adjustments)

49.1%

42.8%

16.4%

631

bps

3,279

bps

ROA

1.9%

1.9%

5.8%

2 bps

(383)bps

ROE

11.0%

11.1%

38.6%

(13)bps

(2,758)bps

Liquidity

Liquid assets / Total Deposits

66.0%

63.7%

61.7%

230

bps

432

bps

Capital

Regulatory Capital Ratio

23.3%

21.9%

19.7%

140

bps

360

bps

TIER I Capital Ratio (Ordinary Capital Level 1/ RWA)

22.6%

21.2%

19.1%

140

bps

350

bps

Asset Quality

Total non-performing portfolio / Total portfolio

1.16%

1.56%

3.25%

(39)bps

(208)bps

Allowances /Total non-performing portfolio

355.26%

269.38%

148.11%

8,588

bps

20,715

bps

Cost of Risk

1.37%

4.27%

9.31%

(290)bps

(794)bps

- 26 -

Accumulated Annualized Ratios

BBVA ARG consolidated

Chg (bps)

In %

3Q20

2Q20

3Q19

QoQ

YoY

Profitability

Efficiency Ratio

58.0%

54.7%

43.9%

337

bps

1,416

bps

Efficiency Ratio (excl. Inflation adjustments)

46.2%

41.8%

33.8%

436

bps

1,234

bps

ROA

2.1%

2.2%

5.2%

(6)bps

(307)bps

ROE

12.3%

13.0%

36.5%

(75)bps

(2,420)bps

Liquidity

Liquid assets / Total Deposits

66.0%

63.7%

61.7%

230

bps

432

bps

Capital

Regulatory Capital Ratio

23.3%

21.9%

19.7%

140

bps

360

bps

TIER I Capital Ratio (Ordinary Capital Level 1/ RWA)

22.6%

21.2%

19.1%

140

bps

350

bps

Asset Quality

Total non-performing portfolio / Total portfolio

1.16%

1.56%

3.25%

(39)bps

(208)bps

Allowances /Total non-performing portfolio

355.26%

269.38%

148.11%

8,588

bps

20,715

bps

Cost of Risk

2.91%

3.58%

4.80%

(67)bps

(189)bps

About BBVA Argentina

BBVA Argentina (NYSE; BYMA; MAE: BBAR; LATIBEX: XBBAR) is a subsidiary of the BBVA Group, the main shareholder since 1996. In Argentina, it is one of the leading private financial institutions since 1886. Nationwide, BBVA Argentina offers retail and corporate banking to a broad customer base, including: individuals, SME's, and large-sized companies.

BBVA Argentina's purpose is to bring the age of opportunities to everyone, based on our customers' real needs, providing the best solutions, and helping them make the best financial decisions through an easy and convenient experience. The institution relies on solid values: "The customer comes first, We think big and We are one team". At the same time, its responsible banking model aspires to achieve a more inclusive and sustainable society.

Investor Relations Contact

Ernesto Gallardo

Chief Financial Officer

Inés Lanusse

Investor Relations Officer

investorelations-arg@bbva.comir.bbva.com.ar

- 27 -

Disclaimer

Banco BBVA Argentina SA published this content on 24 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 November 2020 22:18:07 UTC

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