BBVA(US:BBAR)2024-04-17 22:24Financial Performance - The company reported income for the period of ARS 75,235,793, compared to ARS 119,482,648 for the same period last year, a decrease of approximately 37.06%[7]. - Net income for the period attributable to owners of the Parent was $9.63 million, a decrease of 58.9% compared to $23.44 million in the same quarter of 2022[10]. - Total comprehensive income for the period was ARS 84,261,833, reflecting the company's financial performance[21]. - Total interest income for the quarter ended September 30, 2023, was $586,890,837, compared to $343,874,685 for the same quarter in 2022, reflecting an increase of about 70.8%[143]. - Total interest expense for the quarter ended September 30, 2023, was $316,655,645, compared to $161,383,626 for the same quarter in 2022, indicating an increase of approximately 96.1%[144]. Assets and Liabilities - Total assets as of September 30, 2023, decreased to ARS 3,881,987,062 from ARS 3,979,377,248 as of December 31, 2022, representing a decline of approximately 2.45%[5]. - Total liabilities decreased to ARS 3,117,384,918 from ARS 3,236,083,852, a reduction of about 3.67%[7]. - Deposits as of September 30, 2023, were ARS 2,593,866,878, down from ARS 2,669,025,951, indicating a decrease of approximately 2.83%[7]. - Loans and other financing decreased to ARS 1,352,640,858 from ARS 1,456,781,628, reflecting a decline of about 7.13%[5]. - The total liabilities linked to foreign currency forwards pending settlement increased to 2,324,683 as of September 30, 2023, from 679,212 as of December 31, 2022, marking an increase of 242.5%[63]. Equity and Reserves - Equity attributable to owners of the Parent increased to ARS 753,004,964 from ARS 732,316,619, an increase of about 2.69%[7]. - The company’s reserves increased to ARS 424,136,270 from ARS 355,435,999, reflecting an increase of about 19.31%[7]. - Total equity attributable to owners of the Parent decreased to $71.49 million from $77.24 million year-over-year[15]. Cash Flows - Total cash flows generated by operating activities amounted to ARS 242,283,796, a significant increase compared to ARS 17,188,003 in the previous year[23]. - As of September 30, 2023, total cash flows used in investing activities amounted to ARS (11,572,312) thousand, an increase of 31.5% compared to ARS (8,817,999) thousand in the same period of 2022[26]. - Total cash flows used in financing activities were ARS (20,587,376) thousand, representing a 30.5% increase from ARS (15,706,387) thousand year-over-year[26]. - Cash and cash equivalents at the end of the fiscal period stood at ARS 478,339,623 thousand, slightly down from ARS 484,351,175 thousand a year earlier[26]. Taxation - The effective tax rate for the period ended September 30, 2023, was calculated at 35%[92]. - The current income tax expense for the quarter ended September 30, 2023, was 10,631,946, compared to (502,119) for the same quarter in 2022[92]. - Current income tax liabilities as of September 30, 2023, were 21,516,203, an increase of 46.5% compared to 14,724,473 on December 31, 2022[88]. Investments - Investments in equity instruments increased to ARS 2,974,366 from ARS 1,906,252, a rise of approximately 56.06%[7]. - Total investments in equity instruments through other comprehensive income reached 1,146,588 as of September 30, 2023, compared to 122,841 as of December 31, 2022[113]. - Total investment in finance leases as of September 30, 2023, was $23,966,025, with a current value of minimum payments at $11,034,909[69]. Economic Environment - BBVA Argentina operates in a challenging economic environment characterized by high inflation and volatile financial variables, including a country risk indicator that has risen post-debt renegotiation[29]. - The inflation rate for the nine-month period ended September 30, 2023, was 103.15%, compared to 66.07% for the same period in 2022[37]. - The monetary policy rate increased from an annual nominal rate of 75% at the beginning of the year to 133% as of October 12, reflecting a significant tightening of monetary policy[29]. Management and Governance - The bank's management is actively monitoring international and local market conditions to assess potential impacts on its financial position and equity[31]. - The bank's parent company, BBVA, holds 66.55% of the share capital as of September 30, 2023, indicating strong control and support from the parent entity[28]. Financial Instruments - The fair value of financial assets pledged as collateral was $59,920,479 as of December 31, 2022[183]. - The total fair value of derivative instruments was $2,324,683, with all classified under Level 2[159]. - The fair value of financial assets and liabilities maturing in less than three months is considered similar to their accounting balance, indicating a conservative valuation approach[179].