BBVA(US:BBAR)2025-04-04 20:14Financial Position - As of December 31, 2024, the total foreign exchange-denominated asset position was Ps.3,816,713 million, while the total foreign exchange-denominated liability position was Ps.3,901,477 million, resulting in a net liabilities currency position of Ps.(84,764) million [827]. - As of December 31, 2024, consolidated excess capital amounted to Ps.1,317,781 million, with total capital at Ps.2,298,928.7 million under the Argentine risk-based capital guidelines [828]. - The shareholders' equity as of December 31, 2024, was Ps.2,615,827.2 million, with an average shareholders' equity to average total assets ratio of 20.33% [831]. - The average stockholders' equity as a percentage of average total assets was 20.33% in 2024, compared to 20.84% in 2023 [835]. - The total capital under Central Bank rules as of December 31, 2024, was Ps.2,298,928.7 million, with excess capital of Ps.1,317,781 million [835]. - BBVA Argentina's total capital ratio remained around 20%, indicating strong solvency and a comfortable level of excess over minimum capital requirements [857]. Economic Environment - The Argentine financial system is considered small and under-penetrated compared to peers in Latin America, indicating potential growth opportunities if inflation and interest rates are normalized [849]. - Argentine GDP decreased approximately 1.7% in 2024, while inflation fell to 117.8% from 211.4% in 2023, with expectations for continued decline in 2025 [851]. - The Central Bank reduced the monetary policy rate from 133% in 2023 to 32% in December 2024, indicating a significant easing of monetary policy [852]. - The current geopolitical and economic risks, including the war in Ukraine and trade tensions, are expected to impact the global economy and may affect the company's operations [846]. Business Strategy - The company is implementing an investment plan to strengthen technological infrastructure to support business growth and meet future demand [844]. - The company is shifting its focus towards lending to the private sector as the Argentine government reduces its borrowings from the financial sector [858]. - BBVA Argentina aims to maintain strong customer growth and enhance its digitalization strategy, leveraging tools like Net Promoter Score to improve customer satisfaction [859]. - The accelerated adoption of digital tools by customers has been consolidated over the last couple of years, with plans to develop new features collaboratively across BBVA Group [859]. Market Activity - BBVA Argentina gained market share in deposits, particularly in pesos, supported by strong performance in commercial time deposits [854]. - The company returned to the debt markets in the second half of 2024, issuing three corporate bonds totaling Ps. 77 billion, all denominated in pesos [855]. ESG and Climate Concerns - The company is adapting to increasing concerns over ESG and climate change, which may impact consumer preferences and regulatory requirements [860]. - Argentina continues to pursue CO2 emissions reduction, with significant climate risks identified, including droughts and floods affecting agricultural output [861]. - The company holds no material patents and incurs minimal research and development expenses related to IT systems [843].