BBVA Argentina

2Q20 Corporate Presentation

September 2020

Safe Harbour Statement

This press release 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.

Information

This earnings release has been prepared in accordance with the accounting framework established by the Central Bank of Argentina ("BCRA"), based on International Financial Reporting Standards ("I.F.R.S.") and the resolutions adopted by the International Accounting Standards Board ("I.A.S.B") and by the Federación Argentina de Consejos Profesionales de Ciencias Económicas ("F.A.C.P.E."), with the transitory exceptions: (i) the record of a prevision for contingencies referred to uncertain fiscal positions required by the BCRA, (ii) the adjustment in valuation established by the B.C.R.A. applied to the valuation of the remaining investment the Bank keeps of Prisma Medios de Pago S.A. ("Prisma"), and (iii) the temporary exclusion of the application of the IFRS 9 impairment model for non-financial public sector debt instruments.

As of 1Q20, the Bank started to inform its inflation adjusted results pursuant to IAS 29 reporting. To facilitate comparison, figures of comparable quarters of 2019 have been updated according to IAS 29 reporting to reflect the accumulated effect of inflation adjustment for each period up to June 30, 2020.

The information in this press release contains unaudited financial information that consolidates, line item by line item, all of the banking activities of BBVA Argentina, including: BBVA Asset Management Argentina S.A., Consolidar AFJP-undergoing liquidation proceeding, and as of July 1, 2019, PSA Finance Argentina Compañía Financiera S.A. ("PSA") and Volkswagen Financial Services Compañía Financiera S.A ("VWFS").

BBVA Consolidar Seguros S.A. is disclosed on a consolidated basis recorded as Investments in associates (reported under the proportional consolidation method), and the corresponding results are reported as "Income from associates"), same as Rombo Compañía Financiera S.A. ("Rombo"), Play Digital S.A. and Interbanking S.A.

Financial statements of subsidiaries have been elaborated as of the same dates and periods as Banco BBVA Argentina S.A.'s. In the case of consolidated companies PSA and VWFS, financial statements were prepared considering the B.C.R.A. accounting framework for institutions belonging to "Group B", without considering the model established by the IFRS 9 5.5. "Impairment" section for periods starting as of January 1, 2021.

The information published by the BBVA Group for Argentina is prepared according to IFRS, without considering the temporary exceptions established by BCRA.

BBVA Argentina 2Q20 Highlights

As of 1Q20, the Bank started to inform its inflation adjusted results pursuant to IAS 29 reporting. To facilitate comparison, figures of comparable quarters of 2019 have been updated according to IAS 29 reporting to reflect the accumulated effect of inflation adjustment for each period up to June 30, 2020.

BranchesIn-company branches

Total assets

Loans to the private sectorTotal Deposits

247

15

AR$542.1 bn

AR$250.4 bn

AR$367.5 bn

ATMs

Customer service booths

881

2

Net Interest IncomeNet Fee Income

Op. Expenses*

Net Income

ATSs

Employees**

AR$15.9 bn

AR$3.1 bn

AR$11.2 bn

AR$2.6 bn

857

6,186

ROE

ROANPL ratioCoverage ratioEfficiency ratio

10.9% 1.9%

1.56% 269.38% 47.4%

TOTAL ACTIVE CUSTOMERS

DIGITAL SALES

MARCH 2020

Digital Customers1

Mobile Customers2

RETAIL

SMEs

CIB

+2.6 m

+49 k

+700

+1.9 m

+1.5 m

PRV3 41.9%

  • 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. Retail 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

Macro View

POLITICS

Main Variables

  • The National Government extended the mandatory lockdown for the metropolitan area and main urban centers. Only some activities are returning in CABA, mainly small shops that had remained closed.

73.86

$/US$

ARS/USD rate

+33.5%

YoY

43.1

U$S Bn

INTERNATIONAL RESERVES

-27.5%

YoY

42.4%

Jul'20

INFLATION YoY

37.8%

REM Consensus Dec. 2020

38.0%

Monetary Policy Rate

-3.698 bp

YoY

As of August 26, 2020

INFLATION

  • July recorded a 1.9% MoM change in inflation (45.6% YoY), below the REM estimate (2.4% MoM), in line with a context of

    FX controls and freezed tariffs.

ACTIVITY

  • GDP fell 16.6% QoQ w/o seasonal effect in 2Q20, explained by a steep fall in activity in April and moderate recovery in May and June. A rebound is evident in June for industry and construction. Industry increased 13.8% MoM w/o seasonal effect (-6.6% YoY and -14.6% YoY accumulated) showing lower annual falls than in April and May. Construction improved +38.2% in MoM w/o seasonal effect (-14.8% YoY and -37.8% YoY accumulated) after a historical fall. Levels for both sectors remain below those in 2019.

FISCAL POLICY

  • Results in July were better than expected. Revenues increased 19.8% YoY and Expenses increased 72.1% YoY, recording a deficit of AR$ 155.5 bn in July (accumulating AR$ 1,045 bn in the first 7 months, 3.7% of GDP).

SOVEREIGN DEBT

  • The Government agreed with major bondholder committees, which accumulate 54% of debt stock in foreign law. The average present value of the offer reached 54.8 cents per dollar (EY:10%). This offer was extended, in the same conditions, for USD local law bonds. The deadline to enter the swap was August 28th, 2020. Restructuring greatly reduces cashflows for maturities between 2020 and 2024, from USD 46.0 bn to USD 6.0 bn.

We Face this Crisis from a Strong Position

In this context, our digital capacities are a competitive advantage

All indicators correspond to QoQ variations in 2Q20

Reorienting our clients to remote and digital channels

ISSUED ECHEQS

x25

Donations, Human Capital & Sustainability

AR$10 million

Seamos Uno

Initiative involving religious, social and business institutions working closely with the Argentine government to help 4 million people during the pandemic, with food boxes and hygiene products.

AR$10 millionAR$1 million

Argentina nos necesita

Initiative that aims to strengthen the capacity of the Argentine public and private health service systems in order to better respond to the Covid-19 pandemic, in coordination with the Argentine Ministry of Health.

Tu donación vale el doble

Voluntary initiative with the Red

Cross, in which more than $500,000 were collected, reaching more than $1 million when added to the funds doubled by the Bank.

More than 90% of employees at central offices are working remotely. All branches remain open and operational, and many are working up to 100% capacity due to high demand in appointments.

#StayAtHome

#YoMeQuedoEnCasa

The Bank joined this campaign promoting the use of digital media channels to make clients aware of the benefits of operating in an agile and self-serviced way without moving from their homes

1st Sustainable Loan

BBVA Argentina granted the first sustainable loan under the Sustainable Transactional Banking framework, connected to the UN Sustainable Development Goals

COVID-19 support loans as of 2Q20

9% of total AR$ loans

Accumulated total granted to SMEs and Health services at 24% rate and Zero rate credits

As of 2Q20 support loans represent 9% of our AR$ portfolio

+AR$4.0 billion

+AR$11.0 billion

41%

36%

Granted to SMEs for Salary payments

Granted to SMEs for Discounted Instruments

Discounted Instruments*

Salary & Working Capital*

+AR$5.0 million

+AR$1.80 billion

Granted to SMEs for Working Capital

Granted with FoGAr warrants

21%

3%

Loans at 0% Rate*

AR$50 million

+AR$6.5 billion

Consumer Loans to Entrepreneurs and SMEs*

Granted to

Granted at 0% rate

*Over subsidized Loan Portfolio

Health Services

Main Measures taken (including Regulatory Changes) - Update*

Retail Segment

Automatic re-financing of unpaid credit card balances due on April 30. Modification in the calculation of credit card minimum payments to make them more accessible.

Penalties on unpaid current account charges, and closure and disabling of accounts, were suspended until September 30. Fines and fees for returned checks were also suspended.

Commercial Segment

Plan Sueldo clients that do not have debit cards can withdraw cash through the Cash Express service.

Granted credit to more than 9,000 SMEs, to be allocated in payroll payments, discounted instruments and working capital, at a 24% nominal annual rate. This also included loans to the Health sector.

The Bank credited cash withdrawal costs at its own and other banks' ATMs until September 30, and incremented daily withdrawal limits.

The Bank has granted a special credit line for payroll payments for SMEs, which includes a 24% nominal annual rate, backed by the Fondo de Garantías Argentino (FoGAr) warrants.

Value of mortgage and pledge loan payments were freezed from April 1 to September 30. Unpaid instalments will be paid as of October.

The Bank launched the "Ayuda Covid-19" credit line, aimed at clients with credit cards, personal loans and current accounts with a high probability of default: loans of 60 month maturity, first payment due at 120 days, to enable the sorting out of debt.

*Information updated as of Earnings Release, August 25, 2020.

92% of credits were granted through BBVA Net Cash, the online banking for companies.

Currently, the Bank is working on credit lines for self-employed individuals at a 0% rate, promoted by the National Government.

Credit lines for high reciprocity clients, with a 15 month maturity and first instalment payment in 90 days

01

Financial System

Adequate systemic levels of liquidity and solvency

Allowances /Irregular non-financial private sector portfolio

COVERAGE (%)

LIQUIDITY (%)

Cash + net repos with BCRA+ BCRA bills/Total Deposits

CAPITAL (%)

Capital/RWA according to BCRA regulation

NPL (%)

Irregular non-financial private sector portfolio/Financing to the non-financial private sector

Source: "Informe sobre bancos", BCRA, as of June, 2020. Values as of January 2020 are not comparable to previous periods due to inflation adjustments.

140%

120%

100%

80%

60%

40%

20%

0%

Positive real profitability for private banks

ROE (ACCUMULATED ANNUALIZED) AND INFLATION

59.2%

47.6% 53.8%

36.1% 44.4%

35.6%

2018

2019

ROE Private Banks

YoY Inflation

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 March, 2020. Values as of January 2020 are not comparable to previous periods due to inflation adjustments.

17.8%

13.5%

1Q20

ROE System

BBVA ROE 14.

5%

21.0%

19.0%

2Q20

Inflation adjusted figures

A small financial system with good infrastructure, ready for potential growth

LATAM PRIVATE LOANS AND TOTAL DEPOSITS (% of GDP)

99.7%

Credit (%GDP)

BRANCHES AND ATMs/100,000 ADULT POPULATION (Branches and ATMs / 100,000 adult population)

Deposits (%GDP)

ArgentinaChileColombiaPeru

Branches

ArgentinaChileColombiaPeru

Source: IMF and BBVA Research as of 2019 for Credit and Deposits as % of GDP, and as of 2019 for Branches and ATMs. Last information available..

126.7

ATMs

Financial System Private Nominal Growth Rates

RETAIL & COMMERCIAL LOANS GROWTH (AR$ billions, YTD % as of 2Q20)

3,200 250

System

BBVA

1,700 100

1,200 50

700 0 dic.-18 feb.-19 abr.-19 jun.-19 ago.-19 oct.-19 dic.-19 feb.-20 abr.-20 jun.-20

System total loans

System total Commercial loans

Var a/a %

2018

2019

YTD

System total loans

33%

16%

12%

System total Retail loans

30%

16%

5%

System total Commercial loans

36%

15%

21%

BBVA total loans

39%

2%

24%

System total Retail loans

System total Deposits

BBVA total loans

System Time Deposits

Var a/a %

2018

2019

YTD

System total Deposits

62%

26%

39%

System Sight Deposits

52%

30%

39%

System Time Deposits

79%

19%

39%

BBVA total deposits

67%

13%

27%

Sources: Capital balance as of last day of each quarter. BCRA as of June, 2020

SIGHT & TIME DEPOSITS GROWTH (AR$ billions, YTD % as of 2Q20)

02

BBVA Argentina

A leading bank…

Assets (AR$ bn - % Market Share)

Equity (AR$ bn - % Market Share)

Public Banks

Source: "Informe de entidades financieras", BCRA, as of December 2019. Last quarterly information available.

6,732

Liabilities (AR$ bn - % Market Share)

5,836

Earnings (AR$ bn - % Market Share)

897

316.2

Private Banks

…in a fragmented financial system…

Total Private Loans (AR$ bn - % Market Share)

Total Private Deposits (AR$ bn - % Market Share)

2,642

4,837

*Includes PSA + Volkswagen+Rombo.

Source: "Informe de entidades financieras", BCRA, as of December 2019. Last information available.

Public BanksPrivate Banks

…with a diversified business model

MULTICHANNEL STRUCTURE

*POS: Includes points of sale in supermarkets and shopping centers

03

2Q20 Financial Results

2Q20 Highlights - In Real Terms

  • 01 Net Income

    AR$ 2.6 bn

    -70.1% YoY

  • 02 Net Interest Income

    AR$ 15.9 bn

    -17.1% YoY

  • 03 Net Fee Income

    AR$ 3.1 bn

    -9.2% YoY

  • 04 Operating expenses

    AR$ 11.2 bn

    37.4% YoY

  • 05 Risk indicators

    NPL ratio 1.56%Coverage ratio 269.38%

  • 06 Strong capital position

    Capital Ratio 21.9%

    TIER I 21.2%

  • 07 Focus on shareholder value

  • ROE 10.9%

    ROA 1.9%

Solid Balance Sheet Structure

ASSETS

(AR$ billions, INFLATION ADJUSTED)

576

540

2Q19

2Q19

Property and equipmentLoans and other financingCash and Deposits in banks

LOANS /DEPOSITS

1Q20

Other assets

Private and Public Debt securities

Total L6o5a%ns/Total Dep6o7s%its 67%

LIABILITIES & EQUITY

(AR$ billions, INFLATION ADJUSTED)

542

576

540

2Q20

1Q20

Deposits

Corporate bonds issuedFinancing received from other financial instOther liabilities

542

2Q20

65%

Loans - increasing demand in AR$ to support SMEs

TOTAL PRIVATE LOAN PORTFOLIO

(AR$ billions, INFLATION ADJUSTED)

NET PRIVATE LOANS STRUCTURE

264

2Q19

PRIVATE SECTOR LOANS MARKET SHARE %*

Bank Consolidated**

238

1Q20 2Q20

ARSUSD

2Q19 7.64% 8.51%

1Q20 2Q20

  • 7.50% 7.50%

  • 8.35% 8.54%

*Based on daily information from BCRA. Capital balance as of last day of each quarter. **Consolidates PSA, VWFS and Rombo

250

YoY

-64.2%

+ 30.2%

NET TOTAL LOANS BY ECONOMIC ACTIVITY

Loans by Segment - changing*mix structure towards commercial loans

BBVA ARGENTINA (% over total private loans AR$ billions, inflation adjusted)

*QoQ in 2Q20

Other loans

264

2Q19

Pledge Loans

Credit Cards

Consumer loans

Discounted instruments

238

250

1Q20

2Q20

Loans for the prefinancing and financing of exports

Receivables from financial leases

Overdrafts

Mortgage Loans

Retail Loan Portfolio - credit cards driven by Zero rate credit lines

CONSUMER LOANS

(AR$ billions, INFLATION ADJUSTED)

2Q19

1Q20

CONSUMER LOANS MARKET SHARE*

5.22%

4.82%

4.95%

*Based on daily information from BCRA. Capital balance as of last day of every quarter.

CREDIT CARDS

(AR$ billions, INFLATION ADJUSTED)

+12%

78.00

66.00

68.00

64.00

70.00

76.00

74.00

72.00

2Q19

68.7

2Q20

Credit Cards

1Q20 2Q20

Credit card stock (in thousands)

CREDIT CARD MARKET SHARE %*

Financing

Consumption

77.0

74.3

2Q19 11.45% 15.15%

1Q20 2Q20

  • 11.56% 11.67%

  • 14.44% 14.20%

*Credit cards: Consumption market share. Based on information provided by Visa and Mastercard administrators. Spending is considered as of the end of the last month of the quarter.

Retail Loan Portfolio

PLEDGE LOANS (CONSOLIDATED)

MORTGAGE LOANS

(AR$ billions, INFLATION ADJUSTED)

(AR$ billions, INFLATION ADJUSTED)

-9%

17.2

2Q19

1Q20

2Q20

2Q19

1Q20

2Q20

PLEDGE LOANS MARKET SHARE**

15.14%

15.00%

13.44%

**Consolidated market share. Based on daily information from BCRA. Capital balance as of last day of every quarter.

MORTGAGE LOANS MARKET SHARE*

3.35%

3.09%

3.02%

*Based on daily information from BCRA. Capital balance as of last day of every quarter.

Commercial Loan Portfolio - boosted by SMEs 24% loans

COMMERCIAL LOANS

(AR$ billions, INFLATION ADJUSTED)

-10%

141

113

2Q19

Other loansDiscounted instruments

1Q20

Prefinancing and financing of exportsOverdrafts

COMMERCIAL LOANS MKT SHARE%*

2Q19

Loans in $

7.64%

8.97% 9.28%

Loans in USD

10.14%

7.58% 7.34%

1Q20

*Based on daily information from BCRA. Capital values as of last day of every quarter.

**Other financing: 59% in pesos - 41% in foreign currency

126

YoY

-64% USD

+100% ARS

2Q20

Receivables from financial leases

COMMERCIAL LOANS BY CURRENCY (%)

2Q20

Deposits - AR$ deposits growing above inflation in real terms

TOTAL PRIVATE DEPOSITS

(AR$ billions, INFLATION ADJUSTED)

PRIVATE DEPOSITS STRUCTURE

-9%

402

342

2Q19

1Q20

ARSUSD

PRIVATE DEPOSITS MARKET SHARE*

7.35%

6.80%

6.50%

*Based on daily information from BCRA. Capital balance as of last day of every quarter.

IN AR$ (%)

367

YoY

-40.2%

+ 20.1%

2Q20

2Q20 Profitability Indicators - efficiency ratio remains stable

NET INCOME

(AR$ billions, INFLATION ADJUSTED)

2Q19

ROA (%, INFLATION ADJUSTED)

1Q20

2Q20

2Q19

ROE (%, INFLATION ADJUSTED)

2Q19

1Q20

EFFICIENCY (%, INFLATION ADJUSTED)

2Q20

+1,130 bps

47.4%

47.4%

1Q20

2Q20

2Q19

1Q20

2Q20

Net Interest Income

NET INTEREST INCOME

(AR$ billions, INFLATION ADJUSTED)

2 40

34

26

22

(10)Other interest income

15

9

-2

2Q19

1Q20

NET INTEREST INCOME (IN AR$ BILLIONS)

6

2Q20

Savings accounts represent less than 1% of expenses

Interest Income

Financial Sector

CER/UVA clause adjustment income

Commercial

Retail

From Private and Public Securities

(20)Interest Expense

Time deposits

CER/UVA clause adjustment expense

Checking accounts

Other

NII based on:

  • Decline in rates of interest-earning assets (COVID-19 support)

  • Fall in Monetary Policy rate offset by a higher position in LELIQ

  • Decreasing trend in time deposit and interest-bearing checking account rates.

Net Fee Income & Operating Expenses - Effective fee income strategy

NET FEE INCOME

(AR$ billions, INFLATION ADJUSTED)

OPERATING EXPENSES

(AR$ billions, INFLATION ADJUSTED)

+9%

-37%

17.9

12.9

11.2

2Q19

Fee Income

1Q20

Fee expenses

2Q20

Net Fee Income

2Q19

Personnel benefitsDepreciation and amortization

Adminsitrative expensesOther operating expenses

1Q20

2Q20

Sound Risk Indicators - Molca* write-off

NPL & COVERAGE

(%, consolidated, INFLATION ADJUSTED)

NPL PEER GROUP & FINANCIAL SYSTEM

(%, INFLATION ADJUSTED)

5%

0%

4%

4%

3%

3%

2%

2%

1%

1%

4.08%

3.99%

2Q19

CoverageCost of RiskRetail NPL

1Q20

2Q20

NPLCommercial NPL

Cost of Risk: calculated as Loan loss allowances / Total Loans and other financing

Source: System: "Informe de Bancos", BCRA, as of June 2020. Peers & BBVA : 2Q20 Earnings Releases. *Molca: Molino Cañuelas

300%

250%

System

200%

SUPV

150%

100%

GGAL

50%

BBAR

0%

BMA

5.10%

3.54%

1.56%

1.52%

6.10%

Limited Public Sector Exposure

% PUBLIC SECTOR EXPOSURE (EXCL. BCRA) /TOTAL ASSETS

(INFLATION ADJUSTED)

10.0%

2Q19

1Q20

BBVAFinancial System*

2Q20

*Source: "Informe sobre bancos", BCRA, as of June 2020. As of January 2020, System figures are inflation adjusted and not comparable to prior periods.

BBVA PUBLIC SECTOR EXPOSURE

(AR$ billions, INFLATION ADJUSTED)

36.4

19.3

17.8

2Q20

2Q19

Public Debt in pesos

1Q20

Public Debt in US dollarsPublic Debt in pesos, US dollar-Linked

Provinces and Public Sector loans amount for 0.2% in 2Q20

BBVA BCRA EXPOSURE

(AR$ billions, INFLATION ADJUSTED)

Provinces

81.4

62.6

111.6

2Q19

Repo

1Q20

2Q20

Repo

LELIQs

Liquid Assets - higher LELIQ position

TOTAL LIQUID ASSETS

(%, INFLATION ADJUSTED)

PRIVATE DEPOSIT BASE

(%, INFLATION ADJUSTED)

-8%

247

235

238

402

2Q19

1Q20

Cash

Other local and foreign financial institutionsLiquidity bills of B. C. R. A.

B.C.R.A

Government securitiesNet REPO transactions

TOTAL LIQUID ASSETS/TOTAL DEPOSITS

2Q20

61%

68%

64%

2Q19

Time DepositsSavings Accounts

342

367

1Q20

Other

Checking Accounts

2Q20

Investment accounts

69%

LOW COST FUNDING

Strong Capital Position - In Real Terms

2Q19

1Q20

2Q20

Capital Ratio

Tier I

04

BBVA Purpose

BBVA Defined a New Strategy in 2015: To Boost its Transformation

OUR PURPOSE

STRATEGIC PRIORITIES

We are one team

Better client experience

Digital sales

New business models

Optimization of capital allocation

Leading efficiency

The best team

BBVA Argentina Digital Client Strategy Approach

Client acquisition as a key corporate strategic asset for growth

Since 2017*, active clients increased 13%

More than 290,000 clients

Healthy NPL ratio

With an approach in open market

Successfully acquiring clients

Without increasing the number of branches

Payroll acquisition

New clients, increasing payroll market share

Ahead of curve in digital transformation Driving client acquisition and digital sales

*As of December 2019

Consistently leading in customer satisfaction indicator

Loyalty NPS* #1

BBVA Argentina Active Clients

Since 2Q19, active clients increased 5%, more than 137,000

In thousands

In thousands

0.76

2Q19

1Q20

2Q20

2Q19

1Q20

2Q20

2Q19

Total Retail

Total SMEs

Total CIB

BBARSANGALBMA

Active clients: holders of at least one active product. An active product is in most cases a product with at least "one movement" in the last 3 months, or a minimum balance. CIB does not include Mutual Fund clients Source: active credit cards and credit card market share based on Visa and Mastercard information. Active cards: number of cards that record movements by period end (purchases or extractions).

1Q20

2Q20

Geographic Structure as of December 2019

Successfully acquiring clients without increasing the number of branches Clients per branch increased 12% from 2017 to 2019

*Annual variation in number of branches

Source: "Informe de entidades financieras", BCRA, as of December 2019. Last quarterly information available. Clients: from 2019 20-F for SUPV and GAL, 2019 Annual Report for BMA.

Ahead of Curve in Digital Transformation Based on Global Strategy

Digital client acquisition strategy based on a variable-cost selling model, exclusive and attractive offers, and key partners

DIGITAL ACTIVE CLIENTS MILLION, % GROWTH

2Q19

1Q20

CUSTOMER PENETRATION RATE, %

MOBILE ACTIVE CLIENTS MILLION, % GROWTH

2Q20

2Q19

1Q20

Digital customers: number of retail clients that have logged in any of the bank's digital platforms at least once during each of the last 3 months.

2Q20

Mobile customers: number of retail clients that have logged in the bank's mobile app at least once during each of the last 3 months. It is a sub-group of digital customers.

Latest

Digital Actions

Payments

We have implemented NFC technology, after a successful pilot trial through employees in February.

Modo - Payment Solutions

Soon to be launched new payment solution app, together with other Argentine banks, enabling wire transfers and cashless payments through mobile phones, and making all member banks' promotions available at purchase.

Transformation Driving Digital Sales and Client Acquisition

DIGITAL SALES

(% OF TOTAL SALES YTD, % OF TRANSACTIONS AND PRV)

75.7%

41.9%

PRV

2Q19

1Q20

Digital Sales PRV (% Retail)

Digital Sales (% Units)

Digital sales: % of sales done through digital channels and ATM over total sales.

DIGITAL SALESPRV (Retail)

Digital client acquisition strategy based on a variable-cost selling model, exclusive and attractive offers, and key partners

2Q20

PRV: Product Relative value for the Retail Segment, used as a proxy for economic value. Transactions (units) are weighted by a simplified NPV calculated for each product category in order to weight their contribution to the digital sales. Figures have been restated in order to include credit card related financing solutions and FX.

Continuous improvement on efficiency

Accelerated adoption of digital over traditional channels, and a migration from web to mobile

TRANSACTIONS BY CHANNEL

1Q19

2Q19

3Q19

ATM&ATS

REMOTE CHANNELS

% TRANSACTION GROWTH QoQ as of 2Q20

Mobile

4Q19

1Q20

MobileWeb

Tellers

Digital channels are a key pillar for the Bank's efficiency strategy

Web

June 2020 *corresponds to total effective employees, net of temporary contract employees. Consolidated.

Branch reduction ongoing since 2019 (# of branches)

2Q19

2Q20

Employees* (in thousands)

3Q19

4Q19

1Q20

2Q20

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

Asset Quality - Molca* write-off

2018

2019

Allowances as % of NPL

2018

Source: "Informe sobre bancos", BCRA, as of June 2020. Striped periods not adjusted by inflation. *Molca: Molino Cañuelas

NPL as % of Private Lending

BBVASystemPrivate Banks

2019

BBVASystemPrivate Banks

1Q20

2Q20

269%

1Q20

2Q20

Payroll Acquisition

New clients, increasing payroll market share, sight deposits and cross-sell opportunities

MORE payroll customers

INCREASING payroll share

In thousands

1Q19

4Q19

1Q20

Source: Ministerio de Trabajo de la República Argentina; SIPA, as of March 2020. Last quarterly available information..

1Q19

4Q19

1Q20

05

Appendix

Responsible Banking and Sustainability 2019

"In 2019, BBVA Argentina joined the UN Principles of Responsible Banking and signed the Sustainable Finance Protocol. Both initiatives seek to foster a sustainable banking system, fair and accountable towards the community, and are meant to help fulfill the Sustainable Development Goals (SDGs) and the Paris Agreement on Climate Change."

María Isabel Goiri Lartitegui Chairman BBVA

BBVA ARGENTINA WAS THE FIRST PRIVATE BANK TO LAUNCH A NEW LINE OF PERSONAL LOANS CALLED "ECO-LOANS" FOR

$12.2 million

INVESTED IN ENVIRONMENTAL MANAGEMENT

INVESTED IN SOCIAL PROGRAMS

+$25 million

OF OUR SELF-SERVICE TERMINALS SUPPORT ENVELOPE-FREE TRANSACTIONS

100%

THE PURCHASE OF SUSTAINABLE GOODS THAT CONTRIBUTE TO CARE FOR THE ENVIRONMENT AND SUPPORT SDG 7.

The Best Team

>BBVA Volunteers

6,223 employees

47% Women 53% Men

0

Discrimination cases detected

Global Volunteering Week at BBVA +730 employees 325 activities to contribute to the SDG Solidarity Project Contest $650,000 in prizes 21 dreams 4,800 direct beneficiaries

HIGHLIGHTS

OF THE GLOBAL ECO-EFFICIENCY PLAN

40% consumption per capitadecline in YoY paper87.7%of customers with product bundles are enrolled in e-statements

36.6% consumption per capita

decline in year-on-year water82.5%

of VISA customers are enrolled in e-statements

2019

11.9% per capita

reduction of CO2 emissions

92.9% of MasterCard customers areenrolled in e-statements

> The Bank strived to achieve the goal of eliminating plastic from its buildings

Figures correspond to Bank only.

Latest sustainable iniciatives

Certification of green credit line

The Bank certified a green credit line of $290 million to the Unión Transitoria de Empresas, to be allocated in the sanitation treatment project at Cuenca del Rio La Matanza - Riachuelo.

Eco-efficiency plan

The Bank has signed a 5 year contract with Central Puerto for the purchase of renewable energy of wind-power origin. As of August 1, 2020, the Reconquista 199 building will be supplying 88% of its energy requirements through this type of energy.

Credit lines Línea Verde

Green credit lines for SMEs are available for social purposes and sustainable investments, at a 35% rate with a 4 year duration.

Equity Ownership

OWNERSHIP STRUCTURE

6.93%

Free Float 26.51%

SUBSIDIARIES AND EQUITY PARTICIPATIONS

BBVA Asset Management Argentina 100%

BBVA Francés Valores1 96.99%

PSA Finance* 50%Volkswagen Financial Services2 51%

Consolidar AFJP(undergoing liquidation proceedings)

53.89%

Rombo Compañía Financiera 40%

BBVA Seguros 12.22%

SubsidiariesJVs

ANSES**ByMA*NYSE

*Includes 0.07% in LATIBEX

**Administración Nacional de la Seguridad Social or National Social Security Agency. Replacement of the pension and retirement fund system: in 2008 all resources formerly managed by the private pension and retirement system, including meaningful holdings in public companies were transferred o the Sustainability Guarantee Fund (Fondo de Garantía de Sustentabilidad)

1 As of October 1st, 2019, the merger between BBVA Argentina S.A. and BBVA Francés Valores S.A. was put into effect (merger by absorption process)

Interbanking 11.11%Play Digital S.A.

33.33%

Associates

As of October 9th, 50.441 shares have been issued related to the merger by absorption with BBVA Francés Valores S.A., totaling 612,710,079 shares. As of the release of these consolidated financial statements, the increase in capital and the merger by absoprtion are pending registry approval by the I.G.J.

2 As of July 1st 2019 the Bank reports the activity of PSA and VWFS on a consolidated basis with BBVA Argentina, the same as it has been done with BBVA Asset Management Argentina S.A.

BBVA Argentina Outstanding Corporate Bond Debt as of 2Q20

BADLAR- Private Banks rate : interest rate for fixed term deposits over 1 million pesos with a maturity of 30-to-35 days. UVA rate: unit measure that is daily adjusted to the CER index, according to the consumer price index.

JVs corporate bonds not included.

Dividends

Year

Net Income (millions AR$)

Dividends (millions AR$)

Total shares (millions)

Dividends per share (AR$)

Dividends per ADS (AR$)

Payout Ratio

Payment date

2019

31,352

2,500

612.7

4.08

12.24

8%

To be confirmed*

2018

9,705

2,407

612.7

3.93

11.79

25%

05/16/2019

2017

3,878

970

612.7

1.58

4.75

25%

05/09/2018

2016

3,644

911

612.7

1.49

4.46

25%

08/10/2017

2015

3,785

900

536.9

1.68

5.03

24%

07/24/2016

2014

3,204

400

536.9

0.75

2.24

12%

03/18/2016

2013

2,024

29

536.9

0.05

0.16

1%

07/08/2014

2012

1,264

-

536.9

-

-

-

-

*The distribution is subject to BCRA prior authorization, which has not been granted yet. According to Communication "A" 6939 and 7035, the distribution of financial institutions' results is suspended until December 31, 2020.

BBVA Argentina P&L Breakdown

Income Statement

BBVA ARG Consolidated

Chg(%)

In millions AR$ - Inflation adjusted

2Q20

1Q20

2Q19

QoQ

YoY

Interest income

22,342

25,935

33,805

(13.9%)

(33.9%)

Interest expense

(6,465)

(8,611)

(14,648)

24.9%

55.9%

Net interest income

15,876

17,325

19,157

(8.4%)

(17.1%)

Fee income

6,104

5,691

6,408

7.3%

(4.7%)

Fee expenses

(2,996)

(3,715)

(3,560)

19.3%

15.8%

Net fee income

3,109

1,977

2,848

57.3%

9.2%

Net income from financial instruments at fair value

1,016

1,300

3,100

(21.8%)

(67.2%)

Net loss from write-down of assets at amortized cost and fair value through OCI

(2,067)

(134)

(54)

n.m

n.m

Foreign exchange and gold gains

1,494

1,304

1,914

14.6%

(21.9%)

Other operating income

1,142

1,095

6,450

4.3%

(82.3%)

Loan loss allowances

(2,646)

(1,711)

(2,594)

(54.7%)

(2.0%)

Net operating income

17,925

21,156

30,820

(15.3%)

(41.8%)

Personnel benefits

(3,966)

(4,678)

(4,756)

15.2%

16.6%

Administrative expenses

(3,831)

(3,783)

(3,548)

(1.3%)

(8.0%)

Depreciation and amortization

(843)

(867)

(696)

2.8%

(21.0%)

Other operating expenses

(2,585)

(3,525)

(8,944)

26.6%

71.1%

Operating income

6,700

8,303

12,876

(19.3%)

(48.0%)

Income from associates and joint ventures

188

29

278

n.m

(32.5%)

Income from net monetary position

(2,285)

(2,765)

(2,118)

17.4%

(7.8%)

Income before income tax

4,603

5,567

11,036

(17.3%)

(58.3%)

Income tax

(2,046)

(2,293)

(2,478)

10.8%

17.4%

Income for the period

2,557

3,274

8,558

(21.9%)

(70.1%)

Income for the period attributable to:

Owners of the parent

2,510

3,244

8,563

(22.7%)

(70.7%)

Non-controlling interests

47

300

(4)

58.4%

n.m

Other comprehensive income

1,927

1,216

(4,654)

58.4%

141.4%

(1) Excludes consolidation with PSA and VWFS.

Proforma (1)

2Q20

21,129

(5,952)

15,177

6,103

(2,972)

3,131

1,262

(2,067)

1,503

1,168

(2,612) 17,561 (3,890) (3,768)

(837) (2,718) 6,349

258

(2,126) 4,480 (1,945) 2,535

2,510

260

1,926

BBVA Argentina Balance Sheet

Balance Sheet

BBVA ARG Consolidated

Chg (%)

In millions AR$ - Inflation adjusted

2Q20

1Q20

2Q19

QoQ

YoY

Assets

Cash and deposits in banks

112,525

154,393

129,846

(27.1%)

(13.3%)

Cash

50,468

39,332

22,636

28.3%

123.0%

Financial institutions and correspondents

62,057

115,061

107,210

(46.1%)

(42.1%)

B.C.R.A

57,915

110,432

104,904

(47.6%)

(44.8%)

Other local and foreign financial institutions

4,142

4,628

2,306

(10.5%)

79.6%

Debt securities at fair value through profit or loss

9,756

9,546

9,409

2.2%

3.7%

Derivatives

1,057

2,271

2,624

(53.5%)

(59.7%)

Repo transactions

34,267

3,374

8,458

n.m

305.2%

Other financial assets

6,377

19,592

10,530

(67.4%)

(39.4%)

Loans and other financing

243,226

230,229

266,503

5.6%

(8.7%)

Non-financial public sector

0

1

0

(73.7%)

(66.3%)

B.C.R.A

-

12

0

(100.0%)

(100.0%)

Other financial institutions

3,504

5,296

10,855

(33.8%)

(67.7%)

Non-financial private sector and residents abroad

239,722

224,920

255,648

6.6%

(6.2%)

Other debt securities

81,502

68,237

99,595

19.4%

(18.2%)

Financial assets pledged as collateral

10,749

7,182

9,068

49.7%

18.5%

Current income tax assets

9

0

1

n.m

n.m

Investments in equity instruments

1,805

1,909

2,733

(5.5%)

(34.0%)

Investments in subsidiaries and associates

1,229

1,187

3,065

3.5%

(59.9%)

Property and equipment

28,270

28,801

32,081

(1.8%)

(11.9%)

Intangible assets

1,068

969

1,002

10.2%

6.5%

Deferred income tax assets

5,281

7,815

(2,225)

(32.4%)

337.3%

Other non-financial assets

4,772

4,515

2,939

5.7%

62.3%

Non-current assets held for sale

189

189

189

-

(0.0%)

Total Assets

542,080

540,207

575,818

0.3%

(5.9%)

(1) Excludes consolidation with PSA and VWFS.

112,163

50,468

61,695

57,571

4,124

9,756

1,057

34,267

6,241

232,565

0 -

6,677

225,887

81,502

10,748

9

1,805

3,123

28,228

1,067

4,885

4,660

189 532,264

BBVA Argentina Balance Sheet

Balance Sheet

BBVA ARG Consolidated

Chg (%)

In millions AR$ - Inflation adjusted Liabilities

2Q20

1Q20

2Q19

QoQ

YoY

Deposits

Non-financial public sector Financial sector

Non-financial private sector and residents abroad

Liabilities at fair value through profit or loss Derivatives

Other financial liabilities

Financing received from the B.C.R.A. and other financial institutions Corporate bonds issued

Current income tax liabilities Provisions

Deferred income tax liabilities Other non-financial liabilities Total Liabilities

345.586

407.150

8,0% 49,3% (0,9%) 7,6%

(8,3%)

3.660

5.190

341.624 -

302

401.538

423

5,3% (29,2%) (8,5%)

1.651

N/A

(100,0%)

349

3.267

(34,3%)

(93,0%)

45.132

32.931

(37,4%)

(14,2%)

3.822

4.699

33,4%

8,5%

7.902

6.180

(46,8%)

(32,0%)

12.200

6.580

(73,5%)

(50,8%)

11.880 -

10.625

(7,4%)

3,5%

67

N/A

(93,4%)

19.790 446.661

18.496 491.647

10,3% 0,1%

18,1% (9,1%)

Equity

Share Capital Non-capitalized contributions Capital adjustments Reserves

Retained earnings

Other accumulated comprehensive income Income for the period

Equity attributable to owners of the Parent Equity attributable to non-controlling interests Total Equity

Total Liabilities and Equity

(1) Excludes consolidation with PSA and VWFS.

613

613

-

0,0%

22.017

22.006

(0,0%)

0,1%

15.452

15.452

(0,0%)

0,0%

49.781

49.800

65,6%

65,6%

11.022

(15.266)

(344,7%)

(76,7%)

(10.734)

119

41,9%

n.m

1.819 93.546 540.207 *

91.727

3.244

48 84.172 575.818

84.123

13.694

77,3% 1,5% 2,9% 1,5% 0,3%

(58,0%) 10,6% n.m 12,8% (5,9%)

372.431

5.463

385

366.583 -

230

27.841

308

2.948

3.161

10.946

4

21.291 439.161

613

22.017

15.452

82.448

(26.973)

(7.008)

5.754

93.077

26 93.103 532.264

Investor Relations Contactinvestorelations-arg@bbva.comwww.ir.bbva.com.ar

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Banco BBVA Argentina SA published this content on 07 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 September 2020 20:19:07 UTC