BBVA(US:BBAR)2023-07-18 16:00Financial Performance - Net interest income increased to ARS 339,439,957 in 2022, up from ARS 241,237,385 in 2021, reflecting a growth of about 40.7%[11] - Net income for the year attributable to owners of the Parent rose to ARS 58,814,985 in 2022, compared to ARS 41,263,736 in 2021, marking an increase of approximately 42.5%[12] - Basic earnings per share for 2022 were ARS 95.9915, compared to ARS 67.3463 in 2021, representing an increase of approximately 42.7%[13] - Income before income tax increased to 61,857,044 from 41,067,576, representing a growth of approximately 50.9% year-over-year[24] - Total comprehensive income for 2022 was 49,078,399 thousand pesos, compared to 42,349,737 thousand pesos in 2021, reflecting an increase of about 15.5%[16] Assets and Liabilities - Total assets decreased to ARS 1,958,836,856 as of December 31, 2022, from ARS 2,006,747,334 in 2021, representing a decline of approximately 2.4%[6] - Total liabilities decreased to ARS 1,592,952,888 in 2022 from ARS 1,689,990,471 in 2021, a reduction of about 5.7%[9] - Deposits amounted to ARS 1,313,820,228 as of December 31, 2022, down from ARS 1,379,790,010 in 2021, indicating a decrease of approximately 4.8%[9] - The bank's equity attributable to owners of the Parent increased to ARS 360,480,705 in 2022, up from ARS 310,510,876 in 2021, reflecting a growth of about 16.1%[9] - Total equity as of December 31, 2022, was ARS 365,883,968, up from ARS 316,756,863 in 2021, reflecting an increase of approximately 15.5%[9] Cash Flow - Total cash flows generated by operating activities were 110,475,964, a decrease from 227,347,138, indicating a decline of about 51.5%[24] - The entity's cash and cash equivalents at fiscal year-end were 296,292,314, down from 425,320,837, a decline of approximately 30.3%[27] - The year-end cash flow loss on net monetary position was (207,642,509), compared to (179,332,543) the previous year, indicating an increase of about 15.7%[27] Investments and Financial Instruments - The total balance of debt securities at fair value through profit or loss increased significantly to $25,519,962 from $2,721,113, marking a substantial growth[108] - The Group recognized a total of $2,268,201 in assets related to derivative instruments, down from $5,486,313 in the previous year, reflecting a decrease of 58.7%[112] - The Group's total investment in finance leases was $11,316,705 with a current value of minimum payments at $6,388,015 as of December 31, 2022, compared to $8,650,914 and $5,673,027 respectively in 2021[119] Taxation - Current income tax liabilities for the year ended December 31, 2022, were $8,108,398, significantly higher than $942,536 in 2021, indicating a substantial increase in tax obligations[136] - The income tax expense recognized through profit or loss for the fiscal year ended December 31, 2022, was $(3,922,673), compared to a benefit of $155,399 in 2021, reflecting a negative shift in tax position[143] - The net deferred tax liabilities decreased to $(5,171,411) in 2022 from $(14,283,599) in 2021, showing an improvement in the overall tax liability position[141] Economic Environment - The entity's management continues to monitor the macroeconomic situation, with inflation levels reaching 94.8% year-over-year[31] - The gap between the official U.S. dollar price and alternative values reached about 97% as of the date of the financial statements[31] - The inflation rate for the fiscal years ended December 31, 2022, and 2021 was 94.79% and 50.94%, respectively[43] Strategic Initiatives - The company plans to continue focusing on market expansion and new product development as part of its strategic initiatives moving forward[23] - The Group has assessed its ability to continue as a going concern and concluded it has the resources to operate for the foreseeable future[59] Financial Reporting - The financial reporting framework adjustments impacted the restated balances at the beginning of the year, reflecting the company's commitment to compliance and transparency[18] - The consolidated financial statements were prepared in thousands of Argentine pesos, reflecting purchasing power as of December 31, 2022[39] - The Board of Directors approved the financial statements on March 6, 2023[38] Credit Quality - The allowance for expected credit losses is recognized as a write-down of the asset carrying amount in the Statement of Financial Position for financial assets measured at amortized cost[69] - The allowance for loan losses decreased to $(20,889,723) in 2022 from $(26,595,184) in 2021, indicating an improvement in credit quality[121]