Core Insights - Fortum hosted its Investor Day 2025, welcoming both in-person and online participants to discuss the company's business insights and strategies [1][2] - The event featured presentations from key executives, including the President and CEO, CFO, and other representatives, focusing on the operating environment and business development [2] Company Overview - The Investor Day aimed to provide deeper insights into Fortum's business operations and strategic execution [2] - Key executives presented updates on the company's financial targets and progress in strategy implementation [2]

Financial Data and Key Metrics Changes - BBVA Argentina's inflation-adjusted net income for Q3 2025 was ARS 38.1 billion, a decrease of 39.7% quarter-over-quarter, resulting in a quarterly ROE and ROA of 4.7% [8][9] - The capital ratio decreased by 170 basis points to 16.7%, primarily due to the temporary impact of sovereign debt valuation, yet remains at ample levels to support growth [7][15] - The liquidity ratio reached 44.3% of deposits, down from 48.7% in the previous quarter [16] Business Line Data and Key Metrics Changes - Total loans to the private sector grew by 6.7% in real terms, with a consolidated market share of 11.39% [6][13] - Deposits increased by 10.2% in real terms, with market share rising to 10.09% [7][14] - Non-performing loan (NPL) ratio for private loans was 3.28%, below the system average, reflecting effective credit risk management [7][13] Market Data and Key Metrics Changes - Deposit rates surged from 30% in July to peaks of 70% in September due to political uncertainty and monetary policy changes [4] - The demand for exchange rate hedging increased, leading to some dollarization of deposits [4] Company Strategy and Development Direction - The company focuses on operational efficiency through strict expense control and active pricing strategies to navigate a volatile interest rate environment [3][5] - BBVA Argentina aims to maintain growth in credit and operational efficiency while managing risks associated with high NPLs [17] Management Comments on Operating Environment and Future Outlook - Management indicated that the high interest rates have negatively impacted intermediation margins and increased provisions for loan losses, but they expect a recovery in 2026 [5][35] - The company anticipates a gradual return of retail loan demand, while commercial loans, particularly in US dollars, are expected to grow significantly [45][55] Other Important Information - The bank's total operating expenses decreased by 3.4% quarter-over-quarter, attributed to proactive efficiency measures [10][11] - The bank continued dividend payments corresponding to the 2024 financial year, reflecting a commitment to shareholder value [17] Q&A Session Summary Question: Guidance on loan and deposit growth - Management confirmed maintaining guidance of 45%-50% real loan growth and 30%-35% deposit growth, with ROE expectations in the high single digits [22][23] Question: Loan growth authenticity amid economic stagnation - Management believes the loan growth is genuine, primarily driven by US dollar loans to companies, while personal loans have seen no growth due to high NPLs [23] Question: Impact of reserve requirements on liquidity and NIM - Management noted recent changes in reserve requirements that will improve liquidity and profitability, expecting NIM to stabilize and potentially increase in Q4 2025 [32][38] Question: Asset quality outlook amid rising NPLs - Management expects NPLs to rise slightly in Q4 but anticipates a decrease in 2026 as the economic environment stabilizes [34][35] Question: Optimal capital level and future capital strategy - Management aims for a capital ratio around 17% for 2025, with a comfortable minimum level slightly below 13% for future growth [46][47] Question: Risks in credit expansion post-election - Management does not foresee issues related to capital or liquidity but emphasizes caution regarding retail NPLs [54] Question: Coverage ratios and cost of risk outlook - Management is comfortable with current coverage ratios of 98%-100% for 2025, projecting improvements in 2026 [62]

Financial Data and Key Metrics Changes - BBVA Argentina's inflation-adjusted net income for Q3 2025 was ARS 38.1 billion, a decrease of 39.7% quarter over quarter, resulting in a quarterly ROE and ROA of 4.7% [8][9] - The capital ratio decreased by 170 basis points to 16.7%, primarily due to the temporary impact of sovereign debt valuation, yet remains at ample levels to support growth [7][15] Business Line Data and Key Metrics Changes - Total loans to the private sector grew by 6.7% in real terms, with a consolidated market share of 11.39% [6][13] - Deposits increased by 10.2% in real terms, with market share rising 44 basis points to 10.09% [7][14] - Non-performing loan (NPL) ratio reached 3.28%, remaining below the system average, reflecting effective credit risk management [7][13] Market Data and Key Metrics Changes - Deposit rates surged from 30% in July to peaks of 70% in September, influenced by political uncertainty and monetary policy changes [4][5] - The liquidity ratio stood at 44.3% of deposits, indicating a comfortable liquidity position despite a decrease from the previous quarter [7][16] Company Strategy and Development Direction - The company maintains a focus on operational efficiency, managing fees and controlling expenses to navigate a volatile environment marked by high interest rates [3][4] - BBVA Argentina aims to continue driving activity and operational efficiency while generating sustained value for shareholders [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the high interest rates have negatively impacted intermediation margins and increased delinquency levels, but they remain optimistic about future growth [5][10] - The expectation is for a challenging Q4 2025, with potential increases in NPLs, but a recovery is anticipated in 2026 [34][35] Other Important Information - The bank's total operating expenses decreased by 3.4% quarter over quarter, reflecting proactive efficiency measures [10][11] - The bank continued dividend payments corresponding to the 2024 financial year income, demonstrating a commitment to shareholder value [17] Q&A Session Summary Question: Guidance on loan and deposit growth - Management reiterated guidance of 45%-50% real loan growth and 30%-35% deposit growth, with ROE expectations in the high single digits [22][23] Question: Genuine loan growth versus refinancing - Management believes the loan growth is genuine, primarily driven by US dollar loans to companies, with retail loans remaining flat due to high NPLs [23] Question: Daily reserve requirements and NIM evolution - Changes in reserve requirements are expected to improve liquidity and profitability, with a stable NIM anticipated moving forward [32][38] Question: Asset quality outlook - NPLs are expected to rise slightly in Q4 2025 but should stabilize and improve in 2026 [34][35] Question: Capital level stabilization - Management aims for a capital ratio around 17% for 2025, with a comfortable management level slightly below 13% [46][47] Question: Credit demand and NPL absorption - Demand for retail loans is expected to recover slowly, while commercial loans are seeing high demand, particularly in US dollars [45][50] Question: Coverage ratios and NPL outlook - Coverage ratios are currently comfortable at 98%-100%, with expectations for improvement in 2026 as NPLs stabilize [62]

Financial Data and Key Metrics Changes - BBVA Argentina's inflation-adjusted net income for Q3 2025 was ARS 38.1 billion, a decrease of 39.7% quarter over quarter, resulting in a quarterly ROE and ROA of 4.7% [7] - The capital ratio decreased by 170 basis points to 16.7%, primarily due to the temporary impact of sovereign debt valuation, yet remains at ample levels for growth [6][15] - The liquidity ratio reached 44.3% of deposits, down from 48.7% in the previous quarter [16] Business Line Data and Key Metrics Changes - Total loans to the private sector grew by 6.7% in real terms, with a consolidated market share of 11.39% [5][12] - Deposits increased by 10.2% in real terms, with market share rising to 10.09% [6][14] - Non-performing loan (NPL) ratio for private loans was 3.28%, below the system average, indicating effective credit risk management [6][12] Market Data and Key Metrics Changes - Deposit rates surged from 30% in July to peaks of 70% in September due to political uncertainty and monetary policy changes [4] - The demand for exchange rate hedging increased, leading to some dollarization of deposits [4] Company Strategy and Development Direction - The company focuses on operational efficiency through strict expense control and active pricing strategies to navigate a volatile environment [3][5] - BBVA Argentina aims to maintain growth in credit and operational efficiency while managing risks associated with high NPLs [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the high interest rates have negatively impacted intermediation margins and increased delinquency levels, but they remain optimistic about future growth [5][26] - The expectation is for a challenging fourth quarter, with potential increases in NPLs, but a recovery is anticipated in 2026 [26][31] Other Important Information - The bank's total operating expenses decreased by 3.4% quarter over quarter, reflecting proactive efficiency measures [9][10] - The bank continued dividend payments corresponding to the 2024 financial year income, demonstrating commitment to shareholder value [17] Q&A Session Summary Question: Guidance on loan and deposit growth - Management reiterated guidance of 45%-50% real loan growth and 30%-35% deposit growth, with ROE expectations in the high single digits [19][20] Question: Genuine loan growth versus refinancing - Management confirmed that loan growth is genuine, primarily driven by US dollar loans and commercial lending, while retail loans have seen no growth due to high NPLs [20] Question: Daily reserve requirements and NIM outlook - Changes in reserve requirements are expected to improve liquidity and profitability, with a stable NIM anticipated moving forward [24][28] Question: Asset quality and NPL trends - Management expects NPLs to rise slightly in the fourth quarter but anticipates a return to normal levels in 2026 [26][31] Question: Optimal capital levels - The bank aims to stabilize capital ratios around 17%, with a comfortable management level slightly below 13% [31][32]

Financial Performance - Net Income decreased by 40% YoY and 46% QoQ[3] - Net Interest Income decreased by 33.6% YoY and 25.3% QoQ[8] - Financial Margin increased by 286.3% YoY and 37.1% QoQ[8] - Efficiency Ratio was 57.6% in 3Q25[8] Loan Portfolio & Asset Quality - Private Loans increased by 13.4% YoY[18] - Private Loans increased by 6% QoQ[18] Digital Transformation - Digital & Mobile Active Clients increased by 7% and 6% YoY respectively[37, 38] - Total liquid assets/ total deposits increased by 10%[28] Deposits & Capital - Private Deposits Market Share reached 10.09%[28] - Capital ratio declined[29] - Public sector exposure increased[31]

Market Performance - Argentine stocks experienced a significant rally, with the Global X MSCI Argentina ETF (ARGT) increasing nearly 20% on Monday [1] - Economically sensitive stocks, particularly Argentine banks, saw even greater gains, trading approximately 40% higher on the same day [1]

Group 1 - Banco BBVA Argentina SA (NYSE:BBAR) experienced a significant increase of 40.75% on Monday, closing at $14.23, following a rally in the Argentine markets after President Javier Milei's election victory [1][3] - The rally in Banco BBVA Argentina SA was in conjunction with other US-listed Argentine banks, such as Grupo Financiero Galicia SA and Banco Macro SA, indicating a broader market response to the political changes [3] - The political victory was influenced by US President Donald Trump's prior threats regarding US government support, which played a role in the financial dynamics affecting Argentina [2][3] Group 2 - Banco BBVA Argentina SA is a global financial institution with a history dating back to 1857, operating in over 25 countries across North and South America, Europe, and the Asia Pacific [4] - The article suggests that while Banco BBVA Argentina SA has investment potential, there are AI stocks that may offer higher returns with limited downside risk, indicating a competitive investment landscape [5]

Group 1 - Argentine financial markets experienced a rally following the overwhelming victory of Javier Milei's party in the midterm elections, with voters supporting economic reforms through fiscal tightening and free market measures [1][2] - The election results ensure the continuation of U.S. financial aid to Argentina, as President Trump had previously stated that support would depend on the election outcome [1] - Several Argentine stocks surged in pre-market trading, with Banco BBVA rising over 36%, Galicia Financial up 35%, Grupo Supervielle increasing by 31%, Banco Macro climbing 35%, and YPF and Pampa Energía both recording 26% gains [1] Group 2 - Despite a 17.7% year-to-date decline in the Argentine benchmark S&P MERVAL index, the Global X MSCI Argentina ETF saw a 16% increase in pre-market trading, narrowing its year-to-date loss to 10% [2] - The midterm elections involved the renewal of half of the Chamber of Deputies and one-third of the Senate, with Milei's party receiving approximately 41% of the votes compared to 31% for the leftist opposition [2] - Prior to the election, Argentine assets had experienced a downturn due to political tensions following Milei's party's losses in key local elections [2]

Group 1 - Banco BBVA Argentina S.A. (NYSE:BBAR) has been upgraded from Hold to Buy by Carlos Gomez-Lopez from HSBC, with a revised price target of $17, down from $21 [1] - The company's fiscal second-quarter results revealed a revenue of $527.39 million, which was $5.51 million below consensus estimates, and an EPS of $0.21, missing expectations by $0.16 [2] - Despite the recent underperformance, the volatility in the stock presents an attractive entry point for investors, with favorable exchange rates supporting the Argentine banking sector [3] Group 2 - The long-term investment outlook for Argentine banks, including Banco BBVA Argentina S.A., remains strong despite short-term challenges [3]

Market Overview - The market is currently overbought, a trend that has persisted since September 2025, with a need for a pull-back for long-term health [1] - The S&P 500 is projected to reach 7,000 by the end of the year and 7,200 by early 2026, indicating ongoing buying opportunities [1] - The bull market is primarily driven by advancements in AI and technology, with long-term growth projections for the S&P 500 ranging from 10,000 to 13,000 [2] Federal Reserve Insights - The Federal Reserve cutting rates in a healthy economy is unconventional, but such cuts could stimulate risk assets in the current market scenario [3] Investment Strategy - A list of 11 oversold financial stocks has been curated based on a decline of over 20% year-to-date, with analysts expecting more than 30% upside potential [5] - The methodology involved using the Finviz Stock Screener, CNN, and Insider Monkey's Q2 2025 database to identify these stocks [5][6] Company Highlights The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) - Year-to-date decline of 22.73% with an analyst upside potential of 35.42% [8] - The company reported quarterly revenue of $378.81 million for FQ2 2025, an 11.47% year-over-year increase, and EPS of $0.42 [9] - Analysts maintain a bullish sentiment, with a price target reflecting a 35.42% upside from current levels [10] Banco BBVA Argentina S.A. (NYSE:BBAR) - Year-to-date decline of 61.78% with an analyst upside potential of 170.43% [12] - The company reported revenue of $527.39 million, missing consensus estimates, and an EPS of $0.21, which was also below expectations [13] - Despite recent underperformance, the volatility presents an attractive entry point for investors, with a robust long-term investment case for Argentine banks [14]