BBVA(US:BBAR)2023-08-08 16:00Financial Performance - Net interest income for the three-month period ended March 31, 2023, was ARS 131,189,349, an increase of 63.6% compared to ARS 80,142,999 for the same period in 2022 [10]. - Net income for the period attributable to owners of the Parent was ARS 15,028,818, up from ARS 8,553,149 in the prior year, reflecting a growth of 75.1% [13]. - Basic earnings per share for the period was ARS 24.5284, compared to ARS 13.9595 in the same period last year, indicating an increase of 75.8% [13]. - Operating income for the period was ARS 78,757,166, an increase of 55.5% compared to ARS 50,590,562 in the prior year [10]. - The bank's net income before income tax for the period was ARS 21,901,049, compared to ARS 11,781,759 in the previous year, indicating an increase of 86.5% [10]. - Total comprehensive income for the period was ARS 14,375,137 thousand, compared to ARS 10,947,680 thousand in the same period last year, reflecting a growth of about 31.9% [16]. - The total comprehensive income attributable to owners of the Parent was ARS 14,384,644 thousand, compared to ARS 11,259,042 thousand in the previous year, reflecting an increase of approximately 28.8% [16]. Assets and Liabilities - Total assets as of March 31, 2023, amounted to ARS 2,359,830,386, a decrease from ARS 2,384,537,160 as of December 31, 2022, representing a decline of approximately 1.04% [4]. - Total liabilities as of March 31, 2023, were ARS 1,900,056,628, a decrease from ARS 1,939,138,539 as of December 31, 2022, representing a decline of approximately 2.02% [7]. - The bank's total equity as of March 31, 2023, was ARS 459,773,758, an increase from ARS 445,398,621 as of December 31, 2022, representing a growth of approximately 3.2% [7]. - The total balance of derivative instruments as of March 31, 2023, was ARS 1,125,946, with assets linked to foreign currency forwards and interest rate swaps contributing to this total [86]. - The total amount of corporate bonds held was $4,872,948 as of March 31, 2023, slightly up from $4,605,356 as of December 31, 2022 [108]. Cash Flows - Cash flows from operating activities generated ARS 85,887,635 thousand, a substantial improvement compared to a cash outflow of ARS (31,188,125) thousand in the same period last year [26]. - Total cash flows used in investing activities decreased from (2,622,559) thousand ARS in 2022 to (2,286,210) thousand ARS in 2023, a reduction of approximately 12.8% [28]. - Total cash flows used in financing activities increased significantly from (3,835,511) thousand ARS in 2022 to (5,977,185) thousand ARS in 2023, an increase of approximately 55.9% [28]. - The total changes in cash flows improved from (111,267,354) thousand ARS in 2022 to 13,436,680 thousand ARS in 2023, marking a significant turnaround [28]. - Cash and cash equivalents at fiscal period-end decreased from 406,485,507 thousand ARS in 2022 to 374,120,128 thousand ARS in 2023, a decline of approximately 8% [28]. Economic Context - The inflation rate for the three-month period ended March 31, 2023 was 21.73%, compared to 16.07% for the same period in 2022, indicating rising inflation pressures [47]. - The year-end inflation rate for 2022 was reported at 94.79%, reflecting ongoing economic challenges [47]. - BBVA Argentina operates in a complex economic context with a year-over-year inflation rate of 104.3% as of March 31, 2023, impacting financial stability [32]. - The bank's management is actively monitoring macroeconomic conditions to assess potential impacts on equity and financial position [36]. Taxation - The current income tax expense for the period ended March 31, 2023, was $(9,647,035), a significant increase compared to $(396,144) for the same period in 2022 [114]. - The effective tax rate for the Group was 31% for the period ended March 31, 2023, compared to 30% for the same period in 2022 [114]. - The total income tax recognized through profit or loss for the period was $(6,881,728), up from $(3,539,972) in the previous year [114]. - The inflation adjustment for tax purposes is applicable for fiscal years starting on or after January 1, 2018, if the general consumer price index variation exceeds 100% in the preceding 36 months [116]. - As of March 31, 2023, the parameters for applying the inflation adjustment for tax purposes were met, and the effects have been included in the current and deferred income tax bookings [118]. Investments and Financing - The total amount disbursed under the 2022/2023 quota reached $127,355,598, indicating strong engagement in financing productive investments [103]. - Guarantees granted increased significantly to $11,832,473 as of March 31, 2023, compared to $1,873,909 as of December 31, 2022, marking an increase of approximately 530% [99]. - The total amount of financing line for productive investments is aligned with BCRA requirements, indicating compliance and support for MSMEs [100]. Operational Expenses - Personnel benefits increased to $22,052,654 from $18,518,539, marking an increase of about 19.1% [185]. - Total administrative expenses rose to $23,979,559 from $19,438,240, representing an increase of approximately 23.2% [191]. - The company recorded a total of $20,291,557 in other operating expenses, up from $15,841,787, reflecting an increase of approximately 28.5% [192].