Banco BBVA Argentina: 1Q26 Conference Call Highlights

Research evidence excerpt

Banco BBVA Argentina: 1Q26 Conference Call Highlights

imatesby Refinitiv Estimates

bank is not currently competing aggressively for funding; within deposits,

management expects local-currency deposits to grow around 10-15% in real terms

and dollar deposits by roughly 30%. Efficiency should improve, with the full-year

ratio expected to fall below 50%, likely around 48-49%.

Loan Growth. Loan growth expectations were revised as demand remains subdued,

particularly in peso-denominated lending. The first quarter was seasonally weak, and

the second quarter started slowly despite lower rates. However, management has

seen increased demand and more inquiries for peso loans in recent weeks, especially

from companies, as deposit rates moved down from roughly 30% to 20%.

Management expects each quarter to be better than the previous one, with the

recovery initially led by commercial loans, especially large and mid-sized companies.

Dollar loan demand was strong in the first four months of the year but softened

somewhat in May; management expects it to pick up again given the pipeline of

companies seeking dollar loans. Retail will take longer to normalize given asset

quality deterioration across the industry. Within retail, BBVA remains focused on

mortgages and other secured loans, where credit performance has been stronger.

Asset Quality. Management acknowledging that conditions remain challenging. The

recent improvement in provisioning was partly helped by one-offs, including better

ratings for some wholesale clients, but also reflected tighter origination standards.

Deterioration was concentrated in retail (cards and consumer loans), while

commercial credit quality remains very strong. NPL formation decelerated in March,