BBVA(BBAR) - 2023 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - BBVA Argentina's net income for Q1 2023 was ARS 15 billion, a decrease of 27.8% quarter-over-quarter, resulting in a quarterly ROE of 13.7% and a quarterly ROA of 2.6% [7] - Operating income in Q1 2023 was ARS 78.8 billion, up 4.9% from ARS 75.1 billion in Q4 2022, primarily due to increased interest income [7][8] - Net interest income for Q1 2023 was ARS 131.2 billion, a 1.6% increase quarter-over-quarter, while interest expenses rose by 1.4% quarter-over-quarter [8] Business Line Data and Key Metrics Changes - Retail digital client penetration reached 62% by the end of March 2023, stable from a year ago, while retail mobile clients increased to 56% from 54% [6] - Retail digital sales increased from 82.7% in Q1 2022 to 92.5% in Q1 2023, representing 69.2% of total sales in monetary terms [7] - Loan loss allowance decreased by 8.6% in Q1 2023 due to good portfolio performance [9] Market Data and Key Metrics Changes - Private sector loans totaled ARS 75.3 billion in Q1 2023, down 2% quarter-over-quarter but up 3.7% year-over-year [10] - The bank's consolidated market share of private sector loans improved to 9.33% in Q1 2023 from 7.89% a year ago [11] - Private nonfinancial sector deposits totaled ARS 1.6 trillion, a slight decrease of 2.2% quarter-over-quarter, with a market share of 6.83% [12] Company Strategy and Development Direction - The bank emphasizes corporate responsibility, financial inclusion, and sustainability, aiming to maintain a competitive position in the financial system [5][6] - The focus on digital channels is evident, with significant increases in digital sales and customer acquisitions [6][7] Management's Comments on Operating Environment and Future Outlook - The management noted a challenging global context and local economic difficulties, with GDP expected to fall by 2.5% in 2023 [5] - High local inflation and financial volatility are significant concerns, impacting the bank's operations and future outlook [5] Other Important Information - The bank's capital ratio reached 27.9%, indicating strong solvency, while the total liquidity ratio remained healthy at 78.7% of total deposits [12] - The shareholders' meeting approved a distribution request of ARS 50.4 billion, reflecting the bank's commitment to shareholder returns [12] Q&A Session Summary - The Q&A session did not contain any specific questions or answers, as the conference concluded without further inquiries [13]