Financial Data and Key Metrics Changes - BBVA Argentina's inflation-adjusted net income for 2025 was ARS 267.4 billion, a decrease of 43.2% compared to 2024, resulting in a ROE of 7.3% and a ROA of 1.1% [6][7] - Net interest income decreased by 29.4% year-over-year due to lower interest rates and inflation, while net fee income increased by 36.9% [7][9] - The non-performing loan (NPL) ratio on private loans reached 4.18%, below the system average of 5.29% [5][12] Business Line Data and Key Metrics Changes - Private sector loans totaled ARS 14.8 trillion, increasing 7.6% quarter-over-quarter and 47.6% year-over-year, primarily driven by loans in pesos [11] - The bank's consolidated market share of private sector loans improved to 11.91%, up 64 basis points from the previous year [12] - Total gross loans to deposits ratio was 88%, up from 78% in December 2024 [12] Market Data and Key Metrics Changes - Total private deposits reached ARS 16.7 trillion, increasing 3.1% quarter-over-quarter and 29.7% year-over-year, with a market share of 10.04% [14] - Private non-financial sector deposits in pesos decreased by 1.4% quarter-over-quarter, while deposits in foreign currency increased by 11.6% [15][16] Company Strategy and Development Direction - BBVA Argentina aims to consolidate its growth strategy and gain market share, targeting loan growth of 25% to 30% for 2026 [24][25] - The bank is focusing on improving credit quality and managing risks, with expectations that NPLs will peak in the first quarter of 2026 [23][24] - The bank's strategy includes expanding financing for small and medium-sized enterprises, supported by a $150 million credit line from the International Finance Corporation [4][5] Management's Comments on Operating Environment and Future Outlook - Management noted that the first quarter of 2026 is expected to be challenging, but they anticipate improvements in credit indicators thereafter [23][24] - The bank is confident in achieving better profitability in 2026 compared to 2025, with expectations of ROE in the low to mid-teens [27][28] - Management emphasized the importance of stable and lower interest rates for consumer recovery and credit demand [104] Other Important Information - The bank's capital ratio reached 18.3%, with a focus on maintaining a lower payout ratio to support growth [16][55] - The efficiency ratio is expected to improve, with a target of around 46% for 2026 [79] Q&A Session Summary Question: Asset quality and loan growth outlook for 2026 - Management believes the first quarter will be tough, but expects NPLs to peak and credit indicators to improve thereafter, with a loan growth target of 25% to 30% for 2026 [24][25] Question: Profitability expectations for 2026 - Management is confident in achieving better profitability than in 2025, aiming for ROE in the low to mid-teens [27][28] Question: Deposit growth strategy - The bank has been growing deposits faster than the system, focusing on retail and SME deposits, and expects to continue gaining market share [33][34] Question: Guidance on net interest margin for 2026 - No formal guidance on net interest margin was provided, but management expects it to fall slightly in real terms, offset by growth in activity [88] Question: Personal expenses and inflation adjustments - Personal expenses decreased due to one-off provisions, and future growth in expenses is expected to be linked to inflation [93][94]