BBVA(US:BBAR)2022-08-29 16:00Financial Performance - Net interest income increased to 39,228,769 thousand pesos for the three-month period ended March 31, 2022, up from 33,422,315 thousand pesos in the same period of 2021, reflecting a growth of about 17%[9] - Net income for the period attributable to owners of the Parent was 4,186,635 thousand pesos, compared to 4,666,744 thousand pesos in the prior year, indicating a decrease of approximately 10.3%[12] - Total comprehensive income for the period was 5,358,722 thousand pesos, compared to 4,206,473 thousand pesos in the prior year, representing an increase of about 27.4%[14] - The net operating income rose to 52,731,430 thousand pesos, up from 41,877,339 thousand pesos, marking an increase of approximately 25.9%[9] - The basic earnings per share for the period was 6.8330 thousand pesos, down from 7.6166 thousand pesos in the same period last year, a decrease of approximately 10.3%[12] Assets and Liabilities - Total assets decreased from 1,195,742,351 thousand pesos as of December 31, 2021, to 1,169,081,367 thousand pesos as of March 31, 2022, representing a decline of approximately 2.2%[4] - Total liabilities decreased from 1,006,998,723 thousand pesos as of December 31, 2021, to 974,931,136 thousand pesos as of March 31, 2022, a reduction of about 3.2%[6] - Total equity increased from 188,743,628 thousand pesos to 194,150,231 thousand pesos, reflecting an increase of about 2.2%[6] - Cash and cash equivalents at fiscal year-end were reported at 198,968,415 thousand pesos, down from 303,597,848 thousand pesos at the end of the previous year[22] - The total balance of loans and other financing as of March 31, 2022, was 417,951,752, down from 455,797,180 as of December 31, 2021, indicating a reduction of about 8.3%[85] Cash Flows - Cash flows from operating activities resulted in a net outflow of 15,266,108 thousand pesos for the three-month period ended March 31, 2022, compared to an inflow of 71,472,794 thousand pesos for the same period in 2021[20] - Total cash flows used in investing activities amounted to 1,283,702 thousand pesos for the three-month period ended March 31, 2022, compared to 667,236 thousand pesos in 2021[23] - The total cash flows used in financing activities were 1,877,424 thousand pesos for the three-month period ended March 31, 2022, compared to 2,443,362 thousand pesos in 2021[23] Regulatory Environment - The Argentine Government aims to reduce the fiscal deficit to 2.5% of GDP in 2022, 1.9% in 2023, and 0.9% in 2024[37] - The income tax rate for large corporations, including the Bank, increased from 30% to 35% effective from fiscal years beginning on or after January 1, 2021[33] - As of March 31, 2022, minimum capital and minimum cash exceed the thresholds required by the BCRA, with no deficits expected for the following twelve months[45] - The BCRA has imposed new restrictions on accessing the foreign exchange market, affecting the remittance of profits and dividends[34] Credit and Loans - The loan loss allowance for the period was 2,269,249 thousand pesos, compared to 2,968,414 thousand pesos in the previous year, indicating a decrease of about 23.5%[9] - The total balance of credit card loans decreased to 165,510,540 as of March 31, 2022, from 182,390,038 as of December 31, 2021, indicating a decline of about 9.2%[85] - The corporate banking segment saw loans decrease to 34,423,980 as of March 31, 2022, from 36,136,187 as of December 31, 2021, a decline of about 4.7%[196] - Retail loans decreased to 238,110,924 as of March 31, 2022, down from 258,895,454 as of December 31, 2021, reflecting a decrease of approximately 8.0%[196] Expenses and Income - Total administrative expenses amounted to $9.51 billion, a 4.7% increase compared to the previous period[168] - Depreciation and amortization expenses totaled $1.63 billion, reflecting a 5.5% increase from the last reporting period[169] - Other operating expenses reached $471.6 million, indicating a significant rise of 9.0%[170] - Total personnel benefits amounted to $9,064,540 in Q1 2022, compared to $8,615,000 in Q1 2021, indicating an increase of 5.2%[167] Market and Investment - The company plans to expand its market presence and invest in new technologies to drive future growth[1] - The fair value of financial assets and liabilities maturing in less than three months was considered similar to their accounting balance, ensuring accurate valuation assessments[192] - The fair value of financial assets pledged as collateral amounted to $23,106,432 as of March 31, 2022, slightly down from $23,540,145 on December 31, 2021[96] - The total amount disbursed under the 2021/2022 Quota reached $62,449,414, which is a significant increase compared to previous quotas[93]