BBVA(US:BBAR)2022-03-04 18:50Financial Data and Key Metrics Changes - BBVA Argentina reported a net income of $21.2 billion for 2021, an increase of $27.1 million from $16.6 billion in 2020, resulting in an annualized ROAE of 13.5% and ROAA of 2% compared to 10.9% and 1.7% in 2020 [9] - The fourth quarter 2021 net income was $4.8 billion, a 27.8% increase quarter-over-quarter, with a quarterly ROAE of 11.8% and ROAA of 1.8% [10] - The accumulated income tax recorded a gain of $80 million in 2021, with an effective tax rate of 30% compared to 43% in 2020 [10] Business Line Data and Key Metrics Changes - Net interest income for Q4 2021 was $33.6 billion, up 4.3% quarter-over-quarter and 13.9% year-over-year [11] - Net fee income for Q4 2021 totaled $5.8 billion, down 14.5% quarter-over-quarter but up 37.9% year-over-year [13] - Personnel benefits and administrative expenses totaled $16.2 billion in Q4 2021, falling 8.9% compared to Q3 2021 but growing 11% year-over-year [14] Market Data and Key Metrics Changes - Private sector loans totaled $388.4 billion in Q4 2021, increasing 3.7% quarter-over-quarter but decreasing 11.1% year-over-year [15] - The bank's consolidated market share of private sector loans was 8.05% as of Q4 2021, down from 8.49% a year ago [17] - Total deposits reached $708.3 billion, growing 1.9% quarter-over-quarter but falling 1.9% year-over-year [19] Company Strategy and Development Direction - The bank is focusing on digitalization, with digital client penetration reaching 74% and mobile client penetration at 64% by December 2021 [7] - BBVA Argentina aims to sustain and expand its competitive position in the financial system through improved customer acquisition and marketing strategies [6][7] - The bank's capital ratio was 20.8% as of Q4 2021, indicating strong solvency despite a decrease from 23.5% in Q3 2021 due to dividend announcements [20] Management Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the Argentine economy but projected a real growth of around 5% for 2022, despite a contraction in the loan book [23] - The bank expects to gain market share in a contracting system, with a focus on attracting more customers, particularly in SMEs [25] - Profitability is expected to remain stable, with potential improvements in interest income due to increased monetary policy rates, although inflation may impact margins [29][31] Other Important Information - The bank has declared dividends totaling $28 billion, pending distribution, with an expectation to distribute around $13 billion in 2022 [33][34] - The Central Bank's regulations allow for dividends to be paid in 12 installments, which the bank is prepared to follow [32][43] Q&A Session Summary Question: What type of growth does the bank expect for this year and next year? - Management expects real growth around 5% for 2022, despite a contraction in the loan book [23] Question: Why does the bank expect to grow more than the system? - The bank believes it can attract more customers through marketing solutions and has seen increased customer numbers [27] Question: What is the outlook for profitability? - Management anticipates stable profitability figures, with potential improvements in interest income but acknowledges inflation's impact [29][31] Question: What is the status of dividend distribution? - The bank plans to distribute around $13 billion of the declared $28 billion in 2022, pending Central Bank approval [33][34]