BBVA Argentina 2019 Corporate Presentation March 2020
Corporate Presentation 2019 1 Safe Harbour Statement This presentation 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, (iv) 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 Comision 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.
Corporate Presentation 2019 2 Macro view POLITICS Alberto Fernández Government is going through its first months, focused in stabilizing the economy and public debt Main variables restructuring. As of March 4, 2020 The “Juntos por el Cambio” front is still present, showing ability to negotiate in the legislative scene. 62.30 ARS/USD Rate $/US$ MONETARY POLICY +59.0% YoY BBVA still estimates a sustained inflation for 2020, considering possible minor FX rate increases, an expansive monetary policy and the recomposing of regulated prices for 2H19. 44.8 INTERNATIONAL The Central Bank has been reducing the monetary policy rate, deriving in negative real interest rates for the estimated RESERVES U$S bn inflation for 2020. -49,7% Var. YoY 52.9 % ACTIVITY INFLATION YoY Jan’20 In 2019, industrial activity fell 6.4% YoY. All sectors have been hit, specially the automotive and transport industry. 40.0% REM Consensus Dec. 2020 SOVEREIGN DEBT Monetary policy 40.0 % Tight negotiation and restructuring schedule set by the Ministry of Economy. Expansive fiscal policies not consistent Rate with a welcoming debt restructuring. -1055 bps Var. YoY
BBVA Argentina 2019 highlights Total assets Loans to the Total In-company branches branches private sector Deposits 251 15 AR$ 440.3 bn AR$ 201.5 bn AR$ 294.0 bn Customer ATMs service booths 887 2 Net Interest Income Net Fee Income Op. Expenses* Net Income AR$ 55.2 bn AR$ 6.6 bn AR$ 44.7 bn AR$ 31.4 bn Employees** ATSs 6,321 862 ROE ROA NPL ratio Coverage ratio Efficiency ratio 60.6% 7.9% 3.57 % 37.0% 113.04% TOTAL ACTIVE CUSTOMERS DIGITAL SALES DECEMBER 2019 Digital Customers 1 Mobile Customers 2 RETAIL SMEs CIB +1.7 m +1.4 m +2.6 m +53 k +700 PRV 3 55.7 % 1. Digital Customers: 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 2. Mobile Customers: Customers who have been active in online banking at least once in the last three months using a mobile device 3. PRV: Product Relative Value as a proxy of a better economic representation of units sold *Operating expenses: includes administration, personnel benefits, depreciations and other expenses. **corresponds to total effective employees, net of temporary contract employees
01 Financial System
Corporate Presentation 2019 5 Adequate systemic levels of liquidity and solvency 60.1 57.5 56.6 49.0 46.7 LIQUIDITY (%) 42.6 Cash + net repos with BCRA+ BCRA bills/Total Deposits 17.5 16.7 16.3 16.0 15.6 13 CAPITAL (%) Capital/RWA according to BCRA regulation 5.60 5.00 4.80 3.10 NPL (%) 1.80 1.80 Irregular non-financial private sector portfolio/Financing to the non-financial 2015 2016 2017 2018 3Q19 4Q19 private sector Source: “ Informe sobre bancos ”, BCRA, as of December, 2019
Corporate Presentation 2019 6 Positive nominal and real profitability for private banks ROE (ACCUMULATED ANNUALIZED) AND INFLATION BBVA ROE 60.6% 59.2% 55.6% 53.8% 47.6% 53.5% 44.4% 41.4% 39.4% 36.1% 32.4% 31.2% 26.6% 29.6% 35.6% 24.8% 29.4% 26.9% 23.4% 2015 2016 2017 2018 3Q19 4Q19 Inflation YoY Private Banks ROE System ROE Source: BCRA and IPC CABA (from Jan-13 to Apr-16) – IPC GBA INDEC (from May -16 to May -17) – IPC Nacional INDEC (from June -17) ROE: “Informe sobre Bancos ” BCRA as of December, 2019
Corporate Presentation 2019 7 A small financial system with good infrastructure, ready for potential growth LATAM PRIVATE LOANS AND TOTAL DEPOSITS BRANCHES AND ATMs/100,000 ADULT POPULATION (% of GDP) ( Branches and ATMs / 100,000 adult population) 94.7% 73.6 58.9 49.9 60.1% 42.3 45.5% 40.7% 34.7% 32.2% 14.9 14.0 13.5 15.9% 11.5 9.9% Credit (%GDP) Deposits (%GDP) Branches ATMs Argentina Chile Colombia Peru Argentina Chile Colombia Peru Source: IMF and BBVA Research as of 2018 for Credit and Deposits as % of GDP, and as of 2017 for Branches and ATMs..
Corporate Presentation 2019 8 Financial System Private Growth Rates RETAIL & COMMERCIAL LOANS GROWTH DEMAND & TIME DEPOSITS GROWTH (YoY %) (YoY %) 80% 80% 60% 60% 40% 40% 30% 25% 20% 20% 19% 16% 16% 15% 0% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Retail Total Commercial Time Deposits Sight Deposits Total Var YoY% 2016 2017 2018 2019 Var YoY% 2016 2017 2018 2019 Commercial 35% 53% 37% 15% Sight Deposits 14% 22% 77% 30% Retail 29% 51% 30% 16% Time Deposits 71% 34% 52% 19% Total 32% 52% 33% 16% Total 44% 29% 61% 25% Sources: BCRA as of December, 2019
02 BBVA Argentina
Corporate Presentation 2019 10 A leading bank… Assets (AR$ bn - % Market Share) Liabilities (AR$ bn - % Market Share) 6,732 5,836 20.7% 19.7% 26.4% 25.4% 9.5% 9.2% 8.9% 8.9% 8.5% 8.1% 6.4% 6.3% 6.3% 1,780 5.7% 1,480 4.6% 1,325 4.4% 1,206 3.7% 3.8% 3.4% 3.3% 3.5% 3.2% 557 596 621 548 518 494 431 425 368 336 299 268 250 232 225 220 203 187 Nación Galicia Santander Provincia BBVA Macro HSBC Ciudad Credicoop ICBC Rest of the Financial Nacion Santander Galicia Provincia BBVA Macro HSBC Ciudad Credicoop ICBC Rest of the Financial System System System System Equity (AR$ bn - % Market Share) Earnings (AR$ bn - % Market Share) 897 316.2 43.0% 32.4% 13.3% 135.9 291 12.9% 10.0% 11.1% 9.8% 8.7% 8.1% 7.2% 3.9% 5.6% 7.2% 6.0% 4.7% 4.3% 2.4% 7.2% 4.0% 4.1% 120 3.7% 3.3% 40.8 90 78 35.2 64 64 31.0 54 25.6 22.7 36 37 33 30 17.6 14.8 13.5 12.3 7.6 Credicoop Nacion Macro Galicia BBVA Santander Provincia Citi ICBC Patagonia Rest of the Financial Macro Galicia BBVA CITI Santander Patagonia Credicoop ICBC HSBC Provincia Rest of the Financial System System System System Source: “ Informe de entidades financieras ”, BCRA, as of December 2019 Public Banks Private Banks
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