Banco BBVA Argentina S.A.

BBVA Argentina reported first-quarter 2026 inflation-adjusted net income of ARS 85.2 billion, up 31.2% quarter over quarter, and ROE of 8.3%. Net interest income increased 5.9% sequentially to ARS 879.9 billion, and total net interest margin reached 18.6%. The efficiency ratio was 51.4%. Total financing to the private sector ended at ARS 15.7 trillion and total deposits at ARS 17.5 trillion. NPLs rose to 5.60%, cost of risk improved to 6.14% from 8.11% last quarter, coverage was 88.41%, liquidity was 45.5%, and the regulatory capital ratio was 18.8%. Looking ahead, management cut 2026 loan-growth expectations to 15%–20% in real terms from 25%–30%, kept ROE guidance at low-to-mid-teens (closer to the low end), said NPLs should be around 5% or a little below by year-end, and expects peso loan growth and deposits to be around 10%–15% in real terms, while dollar deposits and dollar loans are expected to grow around 30% and 40%, respectively.

María Belén Fourcade said the quarter showed resilience as Argentina moves through a gradual macro normalization, with lower rate volatility, improving financial conditions, and a more predictable backdrop for the sector. She emphasized the bank’s strong capital, liquidity, and market-share gains, and said BBVA Argentina has the tools to lead the market as credit demand normalizes. Her tone was cautious on the timing of a broader private-credit recovery, but constructive on the bank’s positioning.

Diego Cesarini focused on financial performance, saying provisions came in below last quarter and that origination policies are starting to work, even though the situation is still difficult. He said real NIMs were mostly flat in Q1 and expected them to stay broadly stable, with next quarter flat to slightly positive, though he noted possible mild deterioration later in the year if inflation and rates keep falling. On capital allocation, he highlighted the strong liquidity ratio of 45.5%, regulatory capital ratio of 18.8%, and the Central Bank’s approval of a ARS 69 billion dividend; he also said efficiency should improve to below 50% for the full year, around 48%–49%.

Analysts pressed management on asset quality, NPL coverage, deposit competition, margin sustainability, and the timing of loan recovery. Management said Q1 was better on asset quality, March decelerated, April looked mostly flat, and NPLs should stabilize before drifting lower into year-end; coverage should recover back to at least 100 over time, though no specific target was given. On funding, Cesarini said dollar deposits are still growing 2%–3% monthly and the industry has room because dollar loan-to-deposit levels remain below 50%, while local-currency deposit and loan growth were guided at 10%–15% real and dollar growth at 30%–40%. He also said the main missing ingredient for a stronger credit cycle is time for recent policy and macro reforms to filter through the economy.