Financial Data and Key Metrics Changes - BBVA Argentina's net income for Q2 2021 was ARS 7.2 billion, a 119.3% increase quarter-over-quarter and a 14.3% increase year-over-year [10] - The accumulated net income for the first half of 2021 was ARS 10.5 billion, which is 23.7% higher than the same period in 2020 [10] - The accumulated Return on Equity (ROE) for Q2 2021 was 16.5%, while the Return on Assets (ROA) was 2.5% [10] Business Line Data and Key Metrics Changes - Net interest income totaled ARS 24.3 billion, a 1.7% increase from Q1 2021 and a 1.9% increase year-over-year [11] - Net fee income reached ARS 5.4 billion, growing 45.9% quarter-over-quarter and 16.3% year-over-year [12] - Interest expenses increased to ARS 19.4 billion, a 15.1% increase quarter-over-quarter and a 99.4% increase year-over-year [12] Market Data and Key Metrics Changes - BBVA's market share of private sector loans decreased to 8.21% from 8.54% a year ago [17] - The gross loan-to-deposit ratio was 52.9%, down from 68% a year ago [17] - Total deposits reached ARS 609.1 billion, an 8.1% increase quarter-over-quarter and an 8.6% increase year-over-year [19] Company Strategy and Development Direction - The bank is focusing on digitalization, with digital finance penetration reaching 74% from 69% a year ago [8] - BBVA aims to double its target for sustainable financing to €200 billion globally, with BBVA Argentina contributing to this goal [9] - The bank is closely monitoring business conditions and operating results to anticipate effects from the gradual removal of pandemic-related regulations [8] Management's Comments on Operating Environment and Future Outlook - The second quarter of 2021 was impacted by the second wave of COVID-19 and uncertainty from upcoming midterm elections and unresolved foreign debt conflicts [7] - Management is projecting an increase in the non-performing loan (NPL) ratio to around 2.9% by the end of 2021, primarily due to the retail loan book [24] - The bank expects a contraction of approximately 3.6% in real terms for the private loan book for 2021 [30] Other Important Information - The efficiency ratio for Q2 2021 was 70.1%, an improvement from 72.5% in Q1 2021 [15] - The bank's capital ratio was 23.3%, with a Tier 1 ratio of 22.6% [20] - The bank has ARS 21.5 billion in liabilities pending distribution for dividends once approved by the central bank [36] Q&A Session Summary Question: Concerns about asset quality and loan book - Management indicated that the deferred portfolio is only 10% of the book, mainly in retail and credit cards, and they are comfortable with asset quality ratios [24] Question: Provisions related to inflation adjustments - Management confirmed that all provisions related to the fiscal years of 2017 and 2018 have been reversed, totaling ARS 4.3 billion in Q2 2021 [27] Question: Expectations for volume growth in assets, loans, and deposits - Management projected a contraction of around 3.6% in real terms for the private loan book and a growth of approximately 3.1% in real terms for total deposits [30] Question: Impact of digital wallets on funding - Management stated that they are not currently concerned about the impact of digital wallets on deposit availability, as site deposits are growing [43]

Financial Data and Key Metrics Changes - BBVA Argentina reported a net income of ARS 3.0 billion for Q1 2021, an increase of 821.6% quarter-over-quarter and 50.8% year-over-year [7] - The bank achieved a positive real return on equity of 10.5% and a real return on assets of 1.6% [9] - Net interest income totaled ARS 21.5 billion, a decrease of 2.3% from Q4 2020 and 8.1% from Q1 2020 [9][10] - The efficiency ratio for Q1 2021 was 72.5%, up from 56.8% in Q4 2020 and 59.3% in Q1 2020 [14] Business Line Data and Key Metrics Changes - Interest income from loans and other financing reached ARS 17.7 billion, growing 0.5% quarter-over-quarter, driven by a 16.6% increase in credit card income [11] - Net fee income for Q1 2021 was ARS 3.4 billion, up 6.1% quarter-over-quarter and 25.4% year-over-year [12] - Personnel benefits and administrative expenses totaled ARS 11.2 billion, increasing 2.0% compared to Q4 2020 but decreasing 2.5% year-over-year [13] Market Data and Key Metrics Changes - BBVA Argentina's market share in private sector loans decreased to 8.23% from 8.35% in Q1 2020 [15] - Private sector loans in real terms totaled ARS 296.8 billion, down 9.5% quarter-over-quarter and 7.7% year-over-year [14] - Nonfinancial private sector deposits totaled ARS 501.1 billion, decreasing 6% quarter-over-quarter but increasing 8.3% year-over-year [18] Company Strategy and Development Direction - The bank is focusing on digitalization, with digital client penetration reaching 73% from 68% a year prior [7] - BBVA Argentina aims to maintain a sustainable banking model, emphasizing financial education and environmental protection [7] - The bank is positioned to utilize its excess capital of ARS 69.2 billion effectively, with a total regulatory capital ratio of 22.4% [20] Management's Comments on Operating Environment and Future Outlook - Management noted uncertainties due to the ongoing negotiations with the IMF and the impact of midterm elections on the economy [6] - The bank's management expressed confidence in the stability of the NPLs, projecting a year-end NPL ratio of around 3.62% [23] - The management highlighted the importance of adapting to the evolving economic landscape while ensuring the safety of banking operations [6] Other Important Information - The bank's liquidity ratios remained healthy at 65.8% in pesos and 87.7% in dollars as of March 31, 2021 [20] - A cash dividend of ARS 7 billion was approved, subject to Central Bank authorization, with a payout ratio of 58% [21] Q&A Session Summary Question: Concerns about NPLs and loan segments - Management acknowledged a peak in NPLs due to the expiration of COVID-19 measures but indicated stabilization in subsequent months [23] Question: Tax provision reversals and future effective tax rate - Management clarified that the reversal of the 2016 tax provision was a one-time effect and projected an effective tax rate around 38% depending on regulatory changes [26][27] Question: Details on dividend distribution and pending liabilities - Management confirmed that ARS 14.5 billion in dividends from 2019 are pending distribution, and the newly declared ARS 7 billion will be reflected in liabilities in the second quarter [31][33]

PART I [Key Information](index=6&type=section&id=ITEM%203.%20KEY%20INFORMATION) This section presents selected financial data, key performance ratios, dividend history, and exchange rate information for Banco BBVA Argentina from 2017-2020, alongside a comprehensive overview of risk factors [Selected Financial Data](index=6&type=section&id=A.%20Selected%20Financial%20Data) Consolidated Statement of Profit or Loss (in thousands of Argentine Pesos) | Indicator | 2020 | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | :--- | | **Net Interest Income** | 77,050,867 | 90,244,852 | 66,460,642 | 49,749,382 | | **Gross Income** | 95,180,555 | 120,882,953 | 82,511,762 | 67,000,822 | | **Profit Before Tax** | 18,102,889 | 24,636,513 | 5,794,181 | 5,407,440 | | **Profit (Loss) for the Year** | 10,068,795 | 21,815,454 | (3,287,401) | 3,894,338 | | **Profit (Loss) Attributable to Owners** | 10,051,035 | 21,819,964 | (3,119,918) | 3,987,136 | | **Profit (Loss) per Ordinary Share** | 16.41 | 35.61 | (5.09) | 7.00 | Consolidated Statement of Financial Position (in thousands of Argentine Pesos) | Indicator | 2020 | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | :--- | | **Total Assets** | 693,024,525 | 618,310,699 | 757,171,835 | 666,102,475 | | **Total Liabilities** | 578,481,131 | 503,493,790 | 661,793,752 | 563,919,848 | | **Total Equity** | 114,543,394 | 114,816,909 | 95,378,083 | 102,182,627 | Selected Ratios | Ratio | 2020 | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | :--- | | **Return on average total assets** | 1.53% | 3.17% | (0.44)% | 1.19% | | **Return on average total equity** | 8.93% | 20.98% | (3.17)% | 7.88% | | **Total equity as a percentage of total assets** | 16.53% | 18.57% | 12.60% | 15.31% | | **Non-performing loans ratio** | 1.50% | 3.58% | 1.78% | 0.65% | - The Board of Directors proposed a cash dividend distribution of **Ps. 7,000 million** for the fiscal year 2020, subject to shareholder and BCRA approval, though the BCRA has restricted financial institutions from distributing dividends until at least **June 30, 2021**[27](index=27&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) Argentine Peso Devaluation and Inflation Rates (Year-end) | Year | Devaluation Rate | Exchange Rate (Ps. per US$) | Inflation Rate (CPI) | | :--- | :--- | :--- | :--- | | **2020** | 40.49% | 84.1450 | 36.14% | | **2019** | 58.42% | 59.8950 | 53.83% | | **2018** | 101.38% | 37.8083 | 47.65% | | **2017** | 18.45% | 18.7742 | 24.80% | | **2016** | 21.88% | 15.8502 | 34.59% | [Risk Factors](index=10&type=section&id=D.%20Risk%20Factors) - The company identifies **three main categories of risks**: those relating to Argentina, risks concerning the Argentine financial system and the Bank itself, and legal, regulatory, and compliance risks[38](index=38&type=chunk)[39](index=39&type=chunk) - The COVID-19 pandemic has **significantly impacted** the Argentine economy and the Bank's operations, leading to measures like temporary branch closures, a shift to remote work, and government-mandated borrower relief, which increased the risk of asset impairment and loan defaults[105](index=105&type=chunk)[107](index=107&type=chunk)[109](index=109&type=chunk) - Argentina's economy is classified as **hyperinflationary** for accounting purposes under **IAS 29**, requiring financial statements to be restated to the current measuring unit at the end of the reporting period, which significantly affects data comparability and interpretation[55](index=55&type=chunk)[180](index=180&type=chunk)[181](index=181&type=chunk) - The bank faces **significant competition** from non-bank entities like large technology firms (BigTech) and financial technology (Fintech) companies, which often operate under less stringent prudential regulations, creating an uneven playing field[133](index=133&type=chunk)[134](index=134&type=chunk) - The bank's controlling shareholder, BBVA, owns **66.55%** of the capital stock, giving it control over virtually all shareholder decisions, which may create conflicts of interest with minority shareholders[167](index=167&type=chunk)[168](index=168&type=chunk) [Information on the Company](index=37&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) This section details the company's history, business operations, and organizational structure, including recent Argentine economic developments, the bank's business segments, its digitalization focus, and a review of the Argentine banking system's regulatory framework [Recent Political and Economic Developments in Argentina](index=37&type=section&id=Recent%20Political%20and%20Economic%20Developments%20in%20Argentina) Key Argentine Economic Indicators (2018-2020) | Indicator | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **GDP Growth** | -9.9% | -2.2% | -2.5% | | **Inflation (CPI)** | 36.1% | 53.8% | 47.6% | | **Unemployment Rate (Q4)** | 11.0% | 8.9% | 9.2% (annual avg) | | **Primary Fiscal Deficit (% of GDP)** | 6.5% | 0.44% | 2.3% | | **Trade Balance (US$ million)** | 12,530 | 15,990 | (3,823) | - In 2020, the COVID-19 crisis exacerbated Argentina's existing economic challenges, leading to a **9.9% GDP contraction**, with the government's increased public spending resulting in a primary fiscal deficit of **6.5% of GDP**, largely financed by Central Bank monetary issuance[250](index=250&type=chunk)[254](index=254&type=chunk)[265](index=265&type=chunk) - Argentina successfully restructured its sovereign debt with private creditors in August 2020, achieving **99% adherence** and involving a significant coupon reduction from nearly **7% to 3%** with extended maturities[252](index=252&type=chunk) - The Central Bank implemented and tightened foreign exchange controls throughout 2019 and 2020 to manage reserve losses and currency depreciation, establishing a purchase limit of **US$200** per month for individuals[244](index=244&type=chunk)[246](index=246&type=chunk)[253](index=253&type=chunk) [History and Development of the Company](index=43&type=section&id=A.%20History%20and%20development%20of%20the%20company) - Originally incorporated as Banco Francés del Río de la Plata S.A. on **October 14, 1886**, the bank changed its corporate name to Banco BBVA Argentina S.A. in **2019** and is supervised by the Central Bank of Argentina[303](index=303&type=chunk)[304](index=304&type=chunk)[305](index=305&type=chunk) - In 2020, BBVA Argentina participated in the 'Play Sistémico' project with other major private banks to develop a digital payment solution, resulting in the incorporation of Play Digital S.A., in which the Bank holds a **10.762% interest**[309](index=309&type=chunk) [Business Overview](index=44&type=section&id=B.%20Business%20overview) - BBVA Argentina is a subsidiary of Banco Bilbao Vizcaya Argentaria S.A. and is one of the leading private financial institutions in Argentina, offering retail and corporate banking services nationwide[310](index=310&type=chunk) Key Financial and Market Position Data (as of Dec 31, 2020) | Metric | Value | | :--- | :--- | | **Total Assets** | Ps. 693.0 billion | | **Total Loan Portfolio** | Ps. 279.6 billion | | **Total Deposits** | Ps. 478.2 billion | | **Total Shareholders' Equity** | Ps. 114.5 billion | | **Market Share (Private Loans)** | 7.7% (unconsolidated) | | **Market Share (Private Deposits)** | 7.1% (unconsolidated) | - The bank operates through three main business lines: Retail Banking (**2.69 million** active clients), Small and Medium-sized Companies (SMEs) (over **52 thousand** clients), and Corporate and Investment Banking (CIB) (over **700** clients)[320](index=320&type=chunk) - The bank has a strong focus on digitalization, with active digital clients reaching **1.9 million** as of December 31, 2020, representing a **71.7%** penetration rate, and retail digital sales accounting for **80.8%** of total unit sales in 2020[327](index=327&type=chunk)[328](index=328&type=chunk) - The bank's distribution network as of December 31, 2020, includes **247 branches**, **888 ATMs**, and **857 self-service terminals**, complemented by digital channels like bbva.com.ar, BBVA Móvil, Go, and the new MODO payment app[321](index=321&type=chunk)[325](index=325&type=chunk) [Organizational Structure](index=58&type=section&id=C.%20Organizational%20structure) - As of December 31, 2020, Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) is the controlling shareholder, owning **66.55%** of the bank's capital stock[411](index=411&type=chunk) Key Subsidiaries of BBVA Argentina (as of Dec 31, 2020) | Subsidiary | Ownership % | Principal Activity | | :--- | :--- | :--- | | PSA Finance Argentina Cía. Financiera S.A. | 50.00% | Financial institution | | BBVA Asset Management Argentina S.A. | 100.00% | Investment fund manager | | Volkswagen Financial Services S.A. | 51.00% | Financial institution | - The bank holds a **40%** interest in the joint venture Rombo Compañía Financiera S.A. and has investments in associates including BBVA Consolidar Seguros S.A. (**12.22%**) and Play Digital S.A. (**13.00%**)[452](index=452&type=chunk)[461](index=461&type=chunk) [Property, Plant and Equipment](index=67&type=section&id=D.%20Property%2C%20plant%20and%20equipment) - The bank's principal executive offices are located at Av. Córdoba 111, Buenos Aires, in a property owned by the company[480](index=480&type=chunk) - As of December 31, 2020, the bank's network consisted of **247 retail branches**, with **113** located in properties owned by the bank and **134** in leased properties[481](index=481&type=chunk) [Selected Statistical Information](index=67&type=section&id=E.%20Selected%20statistical%20information) - The statistical information presented has been adjusted for hyperinflation in accordance with **IAS 29**, stating figures in the measuring unit current at December 31, 2020[484](index=484&type=chunk) Net Interest Margin and Spread | Indicator | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Net Interest Margin (Weighted Avg)** | 21.82% | 19.67% | 13.56% | | **Yield Spread (Weighted Avg)** | 17.63% | 16.64% | 11.60% | Loan Portfolio Classification by Stage (as of Dec 31) | Stage | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Stage 1** | 84.74% | 86.51% | 91.07% | | **Stage 2** | 13.40% | 9.72% | 6.90% | | **Stage 3 (Non-performing)** | 1.86% | 3.77% | 2.03% | Impairment Allowance Activity (in thousands of Pesos) | Activity | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Balance at beginning of year** | 23,928,237 | 10,197,983 | 5,794,964 | | **Provisions for loan losses** | 4,408,591 | 17,528,046 | 8,107,617 | | **Charge-offs** | (7,298,071) | (3,797,792) | (5,874,897) | | **Balance at end of year** | 21,038,757 | 23,928,237 | 10,197,983 | [The Argentine Banking System and its Regulatory Framework](index=83&type=section&id=F.%20The%20Argentine%20Banking%20System%20and%20its%20Regulatory%20Framework) - The Argentine banking system is supervised by the Central Bank of Argentina (BCRA), which sets technical ratios, capital requirements, and liquidity rules, and consists of both private and public sector banks[531](index=531&type=chunk)[536](index=536&type=chunk) - The Bank is subject to capital adequacy requirements based on **Basel III** principles, with minimum ratios of **4.5%** for ordinary capital level 1, **6%** for basic net equity, and **8%** for total capital relative to risk-weighted assets as of February 2013[571](index=571&type=chunk)[573](index=573&type=chunk)[575](index=575&type=chunk) - The Bank must comply with a **Liquidity Coverage Ratio (LCR)** to ensure it holds sufficient high-quality liquid assets to cover net cash outflows over a **30-day** stress period, with BBVA Argentina's LCR at **314%** as of December 31, 2020[599](index=599&type=chunk)[600](index=600&type=chunk)[604](index=604&type=chunk) - The Bank is subject to the Anti-Money Laundering Law, which requires reporting suspicious transactions to the Financial Information Unit (UIF) and implementing robust 'know your customer' policies[688](index=688&type=chunk)[691](index=691&type=chunk) [Cybersecurity and Fraud Management](index=121&type=section&id=G.%20Cybersecurity%20and%20Fraud%20Management) - In response to accelerated digital transformation and increased cybercrime due to the COVID-19 pandemic, the Bank has focused on initiatives for cybersecurity, fraud prevention, and data protection[712](index=712&type=chunk)[713](index=713&type=chunk) - Key fraud prevention measures in 2020 included implementing a **second authentication factor** for online loans, enhancing password recovery processes, and adopting **3DSecure technology** for e-commerce transactions[716](index=716&type=chunk) - The Bank implemented an infrastructure protection plan which included a firewall solution for its websites, security improvements in critical systems like SWIFT, and a new solution for managing privileged accounts, with no cases of customer data leaks, theft, or loss identified in 2020[714](index=714&type=chunk)[719](index=719&type=chunk) [Operating and Financial Review and Prospects](index=123&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) This section provides management's discussion and analysis of the Bank's financial condition and results of operations, covering challenging economic conditions, the impact of COVID-19 regulations, operating results, liquidity, capital resources, key trends, and off-balance sheet arrangements [Operating Results](index=134&type=section&id=A.%20Operating%20Results) Consolidated Profit or Loss Summary (in thousands of Argentine Pesos) | Line Item | 2020 | 2019 | % Change | | :--- | :--- | :--- | :--- | | **Net Interest Income** | 77,050,867 | 90,244,852 | (14.6)% | | **Gross Income** | 95,180,555 | 120,882,953 | (21.3)% | | **Net Operating Income** | 17,836,317 | 24,462,091 | (27.1)% | | **Profit Before Tax** | 18,102,889 | 24,636,513 | (26.5)% | | **Profit for the Year** | 10,068,795 | 21,815,454 | (53.8)% | | **Profit Attributable to Owners** | 10,051,035 | 21,819,964 | (53.9)% | - Net interest income decreased by **14.6%** in 2020, primarily due to lower interest from government securities (BCRA LELIQ instruments) and reduced interest from various loan products, reflecting lower volumes and rates[793](index=793&type=chunk)[796](index=796&type=chunk)[811](index=811&type=chunk) - Fee and commission income remained relatively stable, decreasing by **1.3%** in 2020, as a significant drop in fees from deposit accounts (due to COVID-19 relief measures) was largely offset by a **66.1%** increase in fees linked to credit cards[813](index=813&type=chunk)[815](index=815&type=chunk) - Impairment of financial assets decreased by **44.7%** in 2020 to **Ps. 11,864.8 million**, an improvement attributed to better portfolio quality and temporary regulatory flexibility from the BCRA on debtor classification amid the pandemic[863](index=863&type=chunk)[864](index=864&type=chunk)[865](index=865&type=chunk) - The loss on net monetary position due to hyperinflation was **Ps. 22,274.8 million** in 2020, a decrease from **Ps. 27,518.8 million** in 2019, reflecting the lower inflation rate during the year[868](index=868&type=chunk) [Liquidity and Capital Resources](index=149&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) - The Bank's primary source of funds is its deposit base, which totaled **Ps. 478,223.0 million** at December 31, 2020, up from **Ps. 400,237.0 million** in 2019[888](index=888&type=chunk) Key Liquidity and Capital Ratios | Ratio | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | :--- | | **Liquid Assets as a % of Total Deposits** | 56.36% | 49.55% | 36.43% | | **Total Liabilities as a multiple of Total Equity** | 5.58x | 4.47x | 8.20x | | **Loans as a % of Total Assets** | 39.70% | 42.96% | 51.16% | - As of December 31, 2020, the Bank had consolidated excess capital of **Ps. 52,967.6 million** pursuant to Central Bank rules, and its total capital to risk-weighted assets ratio was **19.4%**, well above the **8%** minimum requirement[903](index=903&type=chunk)[908](index=908&type=chunk) [Trend Information](index=154&type=section&id=D.%20Trend%20Information) - The COVID-19 pandemic accelerated the adoption of digital tools by customers, with a significant increase in digital product purchases and online transactions, a trend expected to continue[926](index=926&type=chunk)[945](index=945&type=chunk) - The Argentine financial system is expected to face increased regulation in 2021, with the Central Bank setting minimum rates for term deposits and maximum rates for certain loans (e.g., credit cards, SME loans)[939](index=939&type=chunk) - Asset quality trends in 2021 will depend on the evolution of Central Bank measures, as regulatory flexibility, such as extending grace periods for loan classification, led to a decline in delinquency ratios in 2020[939](index=939&type=chunk) - The Argentine banking system remains under-penetrated compared to Latin American peers and is largely unconsolidated, suggesting significant room for industry consolidation and growth if economic conditions stabilize[931](index=931&type=chunk)[933](index=933&type=chunk) [Off-Balance Sheet Arrangements](index=156&type=section&id=E.%20Off-Balance%20Sheet%20Arrangements) - The Bank utilizes off-balance sheet financial instruments, including derivatives, credit commitments, and guarantees, to meet client needs and for its own asset and liability management[947](index=947&type=chunk) - Credit commitments, such as agreements to lend, and guarantees are subject to the same credit policies as on-balance sheet loans, with many commitments expected to expire without being drawn upon[951](index=951&type=chunk) - The Bank acts as a trustee for several financial and non-financial trusts but is not personally liable for the obligations of these trusts; liabilities are satisfied by the trust assets[952](index=952&type=chunk)[953](index=953&type=chunk) [Tabular Disclosure of Contractual Obligations](index=157&type=section&id=F.%20Tabular%20Disclosure%20of%20Contractual%20Obligations) Contractual Obligations and Commercial Commitments as of December 31, 2020 (in thousands of Pesos) | Item | Total | Less than 1 year | 1-3 years | 4-5 years | After 5 years | | :--- | :--- | :--- | :--- | :--- | :--- | | **Long-term debt** | 50,210,225 | 48,835,852 | 1,374,373 | — | — | | **Operating leases** | 2,989,674 | 204,288 | 707,992 | 1,260,611 | 816,783 | | **Lines of credit** | 52,858,621 | 52,858,621 | — | — | — | | **Guarantees** | 841,908 | 735,642 | 41,048 | 64,500 | 718 | [Directors, Senior Management and Employees](index=158&type=section&id=ITEM%206.%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) This section details the Bank's leadership and workforce, including the Board of Directors, senior management, aggregate compensation, board committee structures, employee numbers, and share ownership by directors and executives [Directors and Senior Management](index=158&type=section&id=A.%20Directors%20and%20Senior%20Management) - The Board of Directors is led by Chairwoman María Isabel Goiri Lartitegui, and the senior management team is headed by Chief Executive Officer Martín Ezequiel Zarich, appointed in 2015[956](index=956&type=chunk)[963](index=963&type=chunk) [Compensation](index=163&type=section&id=B.%20Compensation) - The aggregate compensation paid by the Bank and its subsidiaries to all directors and officers for the fiscal year ended December 31, 2020, was **Ps. 747.735 million**, with an additional **Ps. 39.323 million** accrued for 2020 to be paid between 2021 and 2024[968](index=968&type=chunk) [Board Practices](index=163&type=section&id=C.%20Board%20practices) - The Bank's corporate governance includes a Supervisory Committee to monitor management's compliance with laws and regulations, and several board committees such as the Audit Committee, Nomination and Remunerations Committee, and Management Committee[970](index=970&type=chunk)[978](index=978&type=chunk)[983](index=983&type=chunk) [Employees](index=172&type=section&id=D.%20Employees) Number of Full-Time Employees | Year | Main Office | Branches | Total | | :--- | :--- | :--- | :--- | | **2020** | 3,118 | 2,901 | 6,019 | | **2019** | 3,826 | 2,495 | 6,321 | | **2018** | 3,568 | 2,521 | 6,089 | - As of December 31, 2020, **2,457 employees** were unionized, and the Bank considers its relations with employees to be satisfactory, having not experienced conflicts with the union for over **20 years**[1006](index=1006&type=chunk) [Share Ownership](index=172&type=section&id=E.%20Share%20Ownership) - As of February 28, 2021, share ownership by any individual director or senior executive represented **less than 1%** of the Bank's capital stock[1009](index=1009&type=chunk) [Major Shareholders and Related Party Transactions](index=172&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) This section identifies the Bank's principal owners and details related party transactions, noting that BBVA is the largest shareholder and all transactions were conducted on comparable terms to those with unrelated parties [Major Shareholders](index=172&type=section&id=A.%20Major%20Shareholders) Beneficial Ownership of Ordinary Shares (as of Feb 28, 2021) | Beneficial Owner | Number of Shares | % of Shares Outstanding | | :--- | :--- | :--- | | **Banco Bilbao Vizcaya Argentaria S.A.** | 244,870,968 | 39.97% | | **BBV América SL (controlled by BBVA)** | 160,060,144 | 26.13% | | **The Bank of New York Mellon (as ADS holder)** | 99,307,764 | 16.21% | | **Administración Nacional de Seguridad Social (ANSES)** | 42,439,494 | 6.93% | - As of December 31, 2020, BBVA had a total equity interest in the Bank of **66.55%**[1013](index=1013&type=chunk) [Related Party Transactions](index=173&type=section&id=B.%20Related%20Parties%20Transactions) - Transactions with related parties, including controlled companies, controlling shareholders, and key management, were conducted in the ordinary course of business on substantially the same terms as those with unrelated parties and did not present unusual risks[1017](index=1017&type=chunk)[1018](index=1018&type=chunk) [Financial Information](index=175&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) This section covers the Bank's legal proceedings, including anti-money laundering violations and a class action, and its dividend policy, which is currently suspended due to BCRA regulations related to the COVID-19 pandemic [Legal Proceedings](index=175&type=section&id=Legal%20Proceedings) - The Bank is involved in several legal and regulatory proceedings, notably with the Financial Information Unit (UIF) filing **two actions** against the Bank and its directors in 2019 for alleged violations of anti-money laundering regulations[1032](index=1032&type=chunk)[1034](index=1034&type=chunk) - In February 2020, the Bank was notified of a class action lawsuit concerning alleged damages to investors in certain investment funds it managed, related to modifications in the price of future dollar contracts[1035](index=1035&type=chunk) [Dividends](index=175&type=section&id=Dividends) - As a result of the COVID-19 pandemic, the Central Bank of Argentina (BCRA) suspended the distribution of dividends by financial institutions, extending this suspension until **June 30, 2021**, by Communication 'A' 7181[1042](index=1042&type=chunk) - For the year ended December 31, 2019, shareholders approved dividend payments totaling **Ps. 14,500 million** (**Ps. 2,500 million** plus a supplementary **Ps. 12,000 million**), while for 2020, a dividend of **Ps. 7,000 million** has been proposed, subject to BCRA authorization[27](index=27&type=chunk)[1040](index=1040&type=chunk) [The Offer and Listing](index=176&type=section&id=ITEM%209.%20THE%20OFFER%20AND%20LISTING) This section provides information on the trading of the Bank's securities, including its ordinary shares on BYMA and ADSs on NYSE, along with historical high and low closing prices for both - The Bank's ordinary shares are listed on the **BYMA (ticker: BBAR)**, and its American Depositary Shares (ADSs) are listed on the **NYSE (ticker: BBAR)**, with each ADS representing **three ordinary shares**[1044](index=1044&type=chunk)[1047](index=1047&type=chunk) ADS Price History on NYSE (US$ per ADS) | Period | High | Low | | :--- | :--- | :--- | | **Year ended Dec 31, 2020** | 5.77 | 2.27 | | **Year ended Dec 31, 2019** | 13.97 | 3.06 | | **Year ended Dec 31, 2018** | 26.60 | 7.18 | Ordinary Share Price History on BYMA (Pesos per share) | Period | High | Low | | :--- | :--- | :--- | | **Year ended Dec 31, 2020** | 188.85 | 69.40 | | **Year ended Dec 31, 2019** | 183.45 | 80.55 | | **Year ended Dec 31, 2018** | 170.50 | 89.00 | [Quantitative and Qualitative Disclosures About Market Risk](index=191&type=section&id=ITEM%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section details the Bank's risk management framework, covering credit, financial, and non-financial risks, including the non-performing loan ratio, VaR model usage, and management of liquidity, interest rate, and foreign exchange risks - The Bank's risk management model is structured around **three main risk groups**: Credit Risk, Financial Risk (including market, liquidity, and interest rate risk), and Non-Financial Risk (including operational risk)[1169](index=1169&type=chunk) Credit Risk Ratios | Ratio | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | **Non-performing loan ratio** | 1.50% | 3.58% | | **Coverage ratio** | 245% | 148% | Daily Trading Value at Risk (VaR) (in millions of Pesos) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | **Average** | 226.41 | 81.60 | | **Maximum** | 431.58 | 273.42 | | **At December 31** | 225.50 | 43.57 | - As of December 31, 2020, the Bank had a net liability foreign currency position of **Ps. 1,389 million**, where a hypothetical **10% devaluation** of the peso would result in a positive effect on net income of **Ps. 139 million**[902](index=902&type=chunk)[1231](index=1231&type=chunk) PART II [Controls and Procedures](index=202&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) This section addresses the effectiveness of the Bank's internal controls, with management concluding disclosure controls and internal control over financial reporting were effective, and KPMG issuing an unqualified opinion on the latter - As of December 31, 2020, the Bank's management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective**[1237](index=1237&type=chunk)[1238](index=1238&type=chunk) - Management's assessment concluded that the Bank's internal control over financial reporting was **effective** as of December 31, 2020, based on the criteria established in the 'Internal Control—Integrated Framework (2013)' by **COSO**[1241](index=1241&type=chunk)[1242](index=1242&type=chunk) - The independent registered public accounting firm, **KPMG**, audited the internal control over financial reporting and issued an **unqualified opinion** on its effectiveness as of December 31, 2020[1242](index=1242&type=chunk)[1246](index=1246&type=chunk) [Corporate Governance](index=203&type=section&id=ITEM%2016.%20Corporate%20Governance) This section details the Bank's corporate governance practices, including its audit committee, code of ethics, principal accountant fees, and significant differences from NYSE listing standards regarding director independence and committee composition - The Board of Directors has appointed Mr. Alfredo Castillo Triguero as the audit committee financial expert, as defined by the SEC[1252](index=1252&type=chunk) - The Bank has a Code of Conduct that applies to all management and employees and is available on its website[1253](index=1253&type=chunk) Principal Accountant Fees (KPMG) | Fee Type | 2020 (millions of Pesos) | 2019 (millions of Pesos) | | :--- | :--- | :--- | | **Audit fees** | 149.28 | 86.46 | | **Audit-related fees** | 6.24 | — | | **Tax fees** | — | — | | **All other fees** | 0.14 | — | | **Total fees** | 155.66 | 86.46 | - The report discloses **significant differences** between its corporate governance practices and NYSE standards, including not having a majority of independent directors on the board and variations in the composition and requirements of the nominations and compensation committees[1261](index=1261&type=chunk)[1268](index=1268&type=chunk)[1269](index=1269&type=chunk) PART III [Financial Statements](index=209&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) This section contains the audited consolidated financial statements of Banco BBVA Argentina and its subsidiaries for 2018-2020, prepared under IFRS and including KPMG's unqualified opinion, with notes detailing hyperinflationary accounting and COVID-19 impacts - The consolidated financial statements were audited by **KPMG**, which issued an **unqualified opinion**, stating the financials present fairly, in all material respects, the financial position and results of operations in conformity with **IFRS** as issued by the IASB[1294](index=1294&type=chunk) - The auditors identified **two critical audit matters**: 1) The provision for **expected credit losses (ECL)**, due to significant measurement uncertainty and complex judgments, especially given the COVID-19 pandemic; 2) The measurement of fair value for difficult-to-value (**Level 3 financial instruments**), which involved subjective auditor judgment on unobservable inputs[1298](index=1298&type=chunk)[1300](index=1300&type=chunk)[1304](index=1304&type=chunk) - The financial statements have been prepared under the assumption of a **hyperinflationary economy** in Argentina since July 1, 2018, in accordance with **IAS 29**, with all items stated in terms of the measuring unit current at the end of the reporting period (December 31, 2020)[1449](index=1449&type=chunk)

Financial Data and Key Metrics Changes - BBVA Argentina's full year 2020 net income totaled 12 billion pesos, a decrease of 38.9% compared to 19.7 billion pesos in the previous year, primarily due to the pandemic's impact and monetary policy changes [12][13] - The bank reported a positive real return on equity of 11.8% and a real return on assets of 1.8% for the year [14] - In the fourth quarter of 2020, net interest income was 19.5 billion pesos, up 5.3% from the previous quarter but down from the previous year [14][15] Business Line Data and Key Metrics Changes - Interest income from loans and other financing decreased by 5.1% quarter-over-quarter, attributed to a contraction in overdrafts and credit card financing [16] - The retail portfolio, including mortgages and credit card loans, increased by 7.3% quarter-over-quarter and 6.1% year-over-year [19] - Commercial loans grew by 7.3% quarter-over-quarter but faced a decline in overdrafts and financing loans [20] Market Data and Key Metrics Changes - BBVA Argentina's market share in private sector loans increased to 8.49% from 7.71% in the same quarter of the previous year [18] - Private sector deposits totaled 472 billion pesos, growing 7.8% quarter-over-quarter and 19.1% year-over-year [23] - The bank's transactional deposits represented 66.6% of total deposits, up from 63.1% in the previous quarter [23] Company Strategy and Development Direction - The bank emphasized the importance of technology in financial services, achieving a total of 1.9 million digital clients, a penetration rate of 72% [9] - BBVA Argentina launched MODO, a payment solution app, which reached 1 million users [10] - The bank is committed to sustainable development, launching eco-personal loans and sustainable cards made from recyclable materials [10] Management's Comments on Operating Environment and Future Outlook - Management noted the uncertainty in the economic environment due to the global health crisis and its impact on fiscal deficit financing and upcoming elections [7][8] - The bank anticipates an increase in non-performing loans (NPL) to around 3.32% by the end of 2021, driven by commercial lending and the removal of Central Bank waivers [28] - Inflation is expected to rise to 50% in 2021, impacting real returns on equity and assets [39] Other Important Information - The bank's liquidity ratios remain healthy at 60.6% in pesos and 85.1% in dollars as of December 31, 2020 [24] - The coverage ratio for non-performing loans decreased to 334.43% in the fourth quarter of 2020 [21] Q&A Session Summary Question: Concerns about the rapid deterioration in the commercial loan book - Management confirmed that the increase in non-performing loans was primarily due to a specific company in the oil and gas sector, which has been provisioned into Stage 3 [28] Question: Inquiry about the increase in provisions - Management explained that the increase in provisions was mainly due to changes in the calculation parameters of IFRS 9, with projections indicating a decrease in the cost of risk [30] Question: Clarification on the P&L disclosure and future reporting - Management stated that the P&L was not disclosed due to regulatory changes affecting inflation recognition, and they committed to providing full quarterly information in the future [33][35] Question: Expectations for growth and profitability in 2021 - Management projected a loan book growth of around 11% in real terms for 2021, with total deposits expected to grow by 10% [38]

Financial Data and Key Metrics Changes - BBVA Argentina's net income for Q3 2020 was ARS2.83 billion, a 2.9% increase from ARS2.75 billion in Q2 2020, but a 65.4% decrease from ARS8.19 billion in Q3 2019 [9] - Net interest income decreased to ARS16.6 billion, down 2.6% quarter-over-quarter and 25.6% year-over-year [10] - The efficiency ratio increased to 58% in Q3 2020, up from 54.7% in Q2 2020 and 43.9% in Q3 2019 [14] Business Line Data and Key Metrics Changes - Income from government securities increased by 34.1% compared to Q2 2020 but fell 38.4% year-over-year [11] - Net fee income amounted to ARS3 billion, a 10.2% decrease quarter-over-quarter [12] - Interest from time deposits represented 86.4% of total interest expense, increasing 48.5% in the quarter [12] Market Data and Key Metrics Changes - BBVA Argentina's market share of private sector loans increased to 8.25% from 8.13% year-over-year [15] - Private sector deposits totaled ARS393 billion, flat quarter-over-quarter and up 6% year-over-year [19] - The bank's transactional deposits represented 63.1% of total deposits, down from 66.4% a year ago [20] Company Strategy and Development Direction - The bank is focusing on digital transformation, with digital client penetration reaching 71% and mobile client penetration at 59% [7] - BBVA Argentina is committed to sustainability and responsible banking, supporting financial education and environmental protection [7] - The bank aims to optimize shareholder value while maintaining solidity amid the pandemic's volatility [8] Management's Comments on Operating Environment and Future Outlook - Management anticipates an increase in non-performing loans (NPL) to around 1.90% by the end of 2020, with a potential rise to 2.10% in 2021 [25][26] - The bank expects net interest income to increase in Q1 2021 due to rising activity, although costs of funds may also rise [28] - The bank's liquidity ratios remain healthy, with a total regulatory capital ratio of 23.3% [21] Other Important Information - The bank has granted ARS47.6 billion in COVID-19 support credit lines [17] - A complementary cash dividend of ARS12 billion was approved, pending Central Bank approval [21] Q&A Session Summary Question: Provisioning levels and future expectations - Management indicated that provisioning levels would likely increase in Q4 2020 due to changes in the IFRS 9 model and anticipated increases in NPLs [25][26] Question: Net interest income trends - Management acknowledged a significant decrease in net interest income compared to peers and indicated that activity increases could help improve this in Q1 2021 [27][28] Question: Loan demand and new regulations - Management noted that demand for unsubsidized loans is uncertain but indicated that they have already guaranteed ARS5.9 billion in new lines [30][31] Question: Dividend situation - Management clarified that while dividends have been declared, payment is contingent on Central Bank approval, and they are hedging against inflation through this process [39][41]

Banco BBVA Argentina S.A. (NYSE:BBAR) Q2 2020 Earnings Conference Call August 26, 2020 11:00 AM ET Company Participants Javier Kelly - IR Officer Ines Lanusse - IR Officer Conference Call Participants Gabriel Nóbrega - Citigroup Alonso Garcia - Crédit Suisse Carlos Gomez - HSBC Operator Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to BBVA Argentina's Second Quarter 2020 Results Conference Call. We would like to inform you that this event is b ...

Banco BBVA Argentina S.A. (NYSE:BBAR) Q1 2020 Earnings Conference Call June 9, 2020 11:00 AM ET Company Participants Javier Kelly - Investor Relations Manager Ines Lanusse - Investor Relation Officer Ernesto Gallardo - Chief Financial Officer Conference Call Participants Gabriel Nóbrega - Citibank Alonso Garcia - Credit Suisse Carlos Gomez - HSBC, New York Operator Good morning, ladies and gentlemen and thank you for waiting. At this time, we would like to welcome everyone to BBVA Argentina's First Quarter ...

Table of Contents As filed with the Securities and Exchange Commission on April 27, 2020 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURS ...

Banco BBVA Argentina S.A. (NYSE:BBAR) Q4 2019 Earnings Conference Call February 19, 2020 10:00 AM ET Company Participants Ernesto Gallardo - CFO Inés Lanusse - IRO Javier Kelly - IR Manager Conference Call Participants Alonso Garcia - Credit Suisse Gabriel Nóbrega - Citibank Carlos Gomez - HSBC Operator Good day, ladies and gentlemen and thank you for waiting. At this time, we would like to welcome everyone to BBVA Argentina's Fourth Quarter 2019 Conference Call. [Operator Instructions] First of all, let me ...

BBVA Banco Francés S.A. (NYSE:BBAR) Q3 2019 Earnings Conference Call November 8, 2019 11:00 AM ET Company Participants Ines Lanusse - IRO Ernesto Gallardo - Chief Financial Officer Conference Call Participants Gabriel Nóbrega - Citibank Alonso Garcia - Credit Suisse Carlos Gomez - HSBC Operator Good Morning, ladies and gentlemen and thank you for waiting. At this time, we would like to welcome everyone to BBVA Argentina’s 3Q '19 Results Conference Call. We would like to inform you that this event is being r ...