Argentine Lending in Pictures: May 2026: Higher NPLs and cost of risk, but improving profitability

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Argentine Lending in Pictures: May 2026: Higher NPLs and cost of risk, but improving profitability

Equity Research

26 July 2026 | 8:56PM EDT

Argentine Lending in Pictures: May 2026: Higher NPLs and cost of risk,

but improving profitability

Persistent loan growth deceleration and asset quality deterioration Tito Labarta

+1(212)357-6760 | tito.labarta@gs.com

The Argentine banking regulator released credit data for May, showing another Goldman Sachs & Co. LLC

month of loan growth deceleration and asset quality deterioration at the system Tiago Binsfeld, CFA

level. Additionally, provisions rose and cost of risk worsened, staying above +55(11)3371-4574tiago.binsfeld@gs.com|

December 2025 levels. However, the system printed stronger profitability in May due Goldman Sachs do Brasil CTVM S.A.

Juliana Oharato a higher NIM, with ROE increasing 190bps mom to 11.3%. We remain cautious on +55(11)3372-0202 |

the near term outlook given slowing loan growth and continued asset quality juliana.ohara@gs.comGoldman Sachs do Brasil CTVM S.A.

deterioration, maintaining our relative ratings in the country with a Buy rating on

Banco Macro, Neutral rating on Grupo Galicia and Sell rating on BBVA Argentina.

Weaker loan growth across all sectors

System loan growth weakened 290bps mom to 10.5% yoy, with deceleration in all

segments. Mortgage loan growth slowed 1,510bps mom to 67.5% yoy and, with

weaker growth in foreign currency, commercial loan growth decelerated 120bps to

5.4% on softer overdraft (-640bps to 2.0%) and pledge loans (-120bps to -6.3%),

while receivables discounting edged up (30bps to 8.5%). Meanwhile, consumer loan

growth decelerated in both local and foreign currency to -1.0%/-4.1% yoy

(-310/-100 bps mom), and consolidated numbers contracted 1.1% yoy (-310 bps)