BBVA Argentina Sees Signs of Recovery Amid Lower Inflation
BBVA Argentina has reported a strong second quarter, with signs of recovery emerging across various sectors. Despite continued decline in inflation rates, the company's economic activity is displaying overall growth, according to a recent conference call.
Economic conditions have led to an improvement in real incomes and expectations of further credit and consumption recovery. This trend has been reinforced by announcements and approvals under the RIGI program, which totaled over $15 billion during the quarter. The Treasury also made progress in improving its debt maturity profile, extending local currency maturities to 2028 and 2029 and lengthening foreign currency repo agreements.
The company's results show a 44.6% increase in inflation-adjusted net income for the second quarter of 2026, with an operating income that remained relatively stable in a lower inflation environment. This bottom-line expansion boosted the quarterly Return on Equity (ROE) to 12.2%. Despite net interest income being affected by lower rates, the reported Net Interest Margin (NIM) remained stable quarter-over-quarter and year-over-year.
Total financing to the private sector closed at ARS 17.1 trillion, with local currency loans increasing 2% and foreign currency private loans growing by 2.5% sequentially. Mortgage lending continues to gain momentum, driven mainly by commercial segments and foreign currency loans. BBVA Argentina's consolidated loan market share stood at 12%, up 15 basis points over the last 12 months.
Total deposits reached ARS 19.2 trillion, with private deposit market share remaining flat at 9.91% but increasing year-over-year by 26 basis points. Asset quality indicators show signs of improvement in certain early-stage delinquencies, but BBVA Argentina's NPL ratio stood at 6.09%, up 49 basis points during the quarter.
The financial system ratio was 7.22% by the end of June, increasing 54 basis points since March, and the company's quarterly cost of risk reached 7.13%. These developments suggest a gradual recovery in lending activity, reflecting the effects of declining interest rates and more favorable seasonality."
