BBVA(US:BBAR)2025-06-30 16:19Financial Performance - Net interest income for Q1 2025 was ARS 541,328,362, a decrease of 56.0% compared to ARS 1,228,362,376 in Q1 2024[9] - Net income for the period was ARS 81,608,064, up 53.2% from ARS 53,251,542 in the same period last year[14] - Basic earnings per share increased to ARS 128.0084 in Q1 2025, compared to ARS 88.5037 in Q1 2024, reflecting a growth of 44.7%[11] - The net operating income for Q1 2025 was ARS 704,575,866, down 52.0% from ARS 1,466,984,692 in Q1 2024[9] - Total interest income decreased to ARS 918,075,624 in Q1 2025 from ARS 1,990,494,665 in Q1 2024, representing a decline of approximately 53.8%[170] - Total interest expense decreased to ARS 376,747,262 in Q1 2025 from ARS 762,132,289 in Q1 2024, reflecting a reduction of about 50.6%[171] - Commission income increased to ARS 180,626,075 in Q1 2025, up from ARS 142,031,815 in Q1 2024, marking an increase of approximately 27.2%[172] - Total net income from measurement of financial instruments at fair value through profit or loss was ARS 32,201,067 in Q1 2025, compared to ARS 43,459,846 in Q1 2024, indicating a decrease of about 26.0%[175] Assets and Liabilities - Total assets increased to ARS 16,288,455,732 as of March 31, 2025, up from ARS 15,986,783,531 at the end of 2024, representing a growth of 1.9%[5] - Total liabilities rose to ARS 13,471,171,603 as of March 31, 2025, compared to ARS 13,141,263,701 at the end of 2024, marking an increase of 2.5%[7] - Deposits increased to ARS 10,974,710,955, up from ARS 10,780,553,062, indicating a growth of 1.8%[7] - The bank's total equity decreased to ARS 2,817,284,129 from ARS 2,845,519,830, a decline of 1.0%[7] - As of March 31, 2025, total loans and other financing amounted to $9,078,760,870, an increase from $8,184,551,525 as of December 31, 2024, representing a growth of approximately 10.9%[98] - The total consolidated principal of corporate bonds outstanding was $249,101,477, an increase from $122,976,028 as of December 31, 2024[155] Cash Flow and Investments - Cash flows from operating activities showed a net outflow of ARS 521,255,644 thousand for the three-month period ended March 31, 2025, compared to a net inflow of ARS 659,984,738 thousand for the same period in 2024[21] - The total cash and cash equivalents at fiscal period-end were ARS 2,450,905,585 thousand, an increase from ARS 1,984,893,768 thousand at the end of the previous year[23] - Total cash flows used in investing activities were ARS 18,042,086 thousand for Q1 2025, down from ARS 37,734,566 thousand in Q1 2024[23] - Total cash flows generated by financing activities amounted to ARS 195,146,924 thousand in Q1 2025, contrasting with a net outflow of ARS 43,412,463 thousand in Q1 2024[23] - The total fair value of other debt securities increased to $2,247,448,222 from $2,069,007,030, marking a rise of about 8.6%[184] Financial Condition and Ratios - The Group's effective tax rate for the fiscal period ended March 31, 2025, was 38%, down from 41% for the same period in 2024[113] - The allowance for loan losses increased to $(214,599,755) as of March 31, 2025, from $(172,453,810) at the end of 2024, indicating a rise of 24.4%[98] - The provision for contingent commitments increased to $26,163,484 as of March 31, 2025, up from $24,731,860 at the end of 2024, indicating a rise of approximately 5.8%[158] Economic Environment - The inflation rate was reported at 8.57% during the first quarter of 2025, indicating a reduction in inflationary pressures[31] - As of March 31, 2025, the inflation rate for the three-month period was 8.57%, compared to 51.62% for the same period in 2024, and the fiscal year ended December 31, 2024, recorded an inflation rate of 117.76%[51] - The IMF approved an Extended Fund Facility arrangement for Argentina totaling approximately USD 20 billion, with an immediate disbursement of USD 12 billion[33] Regulatory and Compliance - The financial statements have been restated to reflect the purchasing power currency as of March 31, 2025, in accordance with IAS 29 due to hyperinflationary conditions[48] - The legal reserve must allocate 20% of net income as per B.C.R.A. regulations, ensuring compliance with local laws[168] Tax Matters - The Bank filed a request for a refund of ARS 4,528,453 for fiscal year 2019, which was upheld by a favorable judgment on February 7, 2025[120] - The Bank is currently pursuing an unconstitutionality action against AFIP regarding the comprehensive application of tax adjustments for inflation for fiscal year 2022[129] - The Bank filed a claim for a tax refund of 2,491,499 for the fiscal year 2023, arguing that the inflation adjustment mechanism is unconstitutional[131] Investments and Equity - The total amount of Argentine Treasury Bonds in pesos measured at amortized cost decreased to $126,254,944 as of March 31, 2025, from $173,606,503 at the end of 2024, indicating a decrease of 27.3%[101] - The total fair value of investments in equity instruments as of March 31, 2025, is $13,908,295, up from $7,195,687, showing a significant increase of approximately 93.5%[184]