Banco BBVA Argentina Sa · BCBA:BBARB
Banco BBVA Argentina Sa — BBVA Argentina — Q1 2019 Earnings Presentation
36 slides from Banco BBVA Argentina Sa's earnings presentation, July 2019
Slide 1: BBVA Francés is now…
BBVA Francés is now... BBVA
Slide 2: BBVA 1Q 19 Results
Creando Oportunidades BBVA 1Q 19 Results
Slide 3: Macroeconomic Environment
01 Macroeconomic Environment
Slide 4: GDP will contract by 1.2% in 2019 due to weaker quarterly growth
1Q 19 Results 3 GDP will contract by 1.2% in 2019 due to a weaker quarterly growth GDP GROWTH GDP: QUARTERLY GROWTH % YOY (BASE 2004) % YOY 4,1% 2,9% 2,1% 2,6% 0,1% -0,9% -3,8% -2,2% -1,2% -3,7% -2,5% -6,2% -6,0% 2015 2016 2017 2018 2019e Source: BCRA, INDEC and BBVA Research
Slide 5: Inflation does not fall at the expected rate
1Q 19 Results 4 Inflation does not fall at the expected rate due to the volatility of the FX and the greater indexation of the economy NATIONAL CPI % YOY Inflation expectations increased as 47,6% the extremely tight monetary policy 39,4% 40,0% seems insufficient to reduce inertia 26,9% 24,8% quickly
Slide 6: Despite good fiscal result until April 2019, zero deficit goal requires greater effort
1Q 19 Results 5 Despite the good fiscal result until April 2019, the goal of 0 fiscal deficit will request greater effort. PRIMARY AND FINANCIAL FISCAL RESULT % GDP 1% 3.6% 1,0% 2.1% 1.9% 1,4% 0% 0,9% 0,7% -2,4% 2,6% -3,3% -3,1% -4,2% -3,8% 1,2% 1,2% -5,3% -5,8% -6,0% 2016 2017 2018 +13 bps 2019e 20
Slide 7: Sharp adjustment of current account due to sharp real depreciation
1Q 19 Results 6 Sharp adjustment of current account due to sharp real depreciation CURRENT ACCOUNT TRADE BALANCE % GDP % GDP 50% 30% -2,2% 10% -2,7% -2,6% -10% -30% -4,9% -5,2% 2015 2016 2017 2018e 2019e Trade Balance Real services Exports Imports Interest & Dividends Current Account Source: INDEC S
Slide 8: The BCRA will be able to intervene in the FX market
1Q 19 Results 7 The BCRA will be able to intervene in the FX market even within the (former) non-intervention zone. FX RATE INTERNATIONAL RESERVES AR$/USD MILLION USD 58 58 50 50 66.187 42 42 34 34 50.522 26 26 18 18 Sep-19 Sep-18 Jun-18 Dec-18 Jun-19 Dec-19 Mar-18 Mar-19 Reference FX rate CB Lower
Slide 9: Financial System
do Oportunidades Q2 Financial System
Slide 10: Adequate levels of liquidity and solvency; asset quality deterioration
1Q 19 Results 9 Adequate levels of liquidity and solvency. Asset quality indicators started to show some deterioration CAPITAL LIQUIDITY Capital/RWA according to BCRA regulation Cash + net repos with BCRA+ BCRA bills/Total Deposits 16,7% 15,6% 15,8% 15,9% 58,9% 13,3% 46,7% 49,0% 42,6% 56,6% 2015 201
Slide 11: Higher profitability in nominal terms, but negative in real terms
1Q 19 Results 10 Higher profitability in nominal terms, but negative in real terms ROE AND INFLATION QUARTERLY FIGURES 47,6% 47,1% 43,1% 47,6% 47,1% 39,4% 43,2% 43,2% 24,8% 36,1% 35,0% 37,1% 36,1% 32,4% 29,6% 26,6% 23,4% 30,6% 26,9% 23,6% 2015 2016 2017 2018 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 ROE ROE ROE
Slide 12: A small financial system, but with good infrastructure to face growth
1Q 19 Results 11 A small financial system, but with good infrastructur to face potential growth LATAM PRIVATE LOANS AND BRANCHES AND ATMS/100,000 TOTAL DEPOSITS ADULT POPULATION 84,6% 60,0 54,0 66,4% 45,8 45,0 45,3% 41,6% 40,1% 32,6% 24,3 22,0 16,0 15,7% 13,0 9,3% Loans to the Private Deposits Branc
Slide 13: Argentina has the less concentrated financial system in the region
1Q 19 Results 12 Argentina has the less concentrated financial system in the region TOTAL LOANS MARKET SHARE N°OF FINANCIAL INSTITUTIONS PER COUNTRY 100% 78 80% 60% 47 40% 25 23 20% 17% 32% 21% 19% 30% 19% 16 0% Top 1 Top 2 Top 3 Top 5
Slide 14: Private loans trend
1Q 19 Results 13 Private loans trend TOTAL PRIVATE LOANS RETAIL AND COMERCIAL LOANS GROWTH AR$+USD (YOY %) YOY % - MILLIONS AR$ 85% 200,000 245% 75% 160,000 195% 65% 55% 120,000 145% 45% 80,000 95% 35% 40,000 45% 25% 0 -5% 15% Total Nom Total AR$ USD expressed in AR$ USD Retail Commercial Total
Slide 15: Total deposits trend
1Q 19 Results 14 Total deposits trend TOTAL PRIVATE DEPOSITS SIGHT DEPOSITS AND TIME GROWTH DEPOSITS (YOY %) AR$+USD (YOY %) 185% 80% 135% 60% 85% 40% 35% 20% -15% 0% Total AR$ USD expressed in AR$ USD SD TD Total
Slide 16: BBVA
Q3 BBVA Creando Oportunidades
Slide 17: A universal bank with a countrywide presence
1Q 19 Results 16 A universal bank with a countrywide presence Clients 2,34 2,47 2,43 Retail Branches Active clients 252 ATMs 856 SMEs 45.859 47.073 42.297 ATSs 844 Employees 6,153 CIB 797 840 827 1Q18 4Q18 1Q19
Slide 18: ...leader among private banks
1Q 19 Results 17 ...leader among private banks TOTAL DEPOSITS TOTAL LOANS SANTANDER 10,1 GALICIA 10,3 GALICIA 9,0 SANTANDER 9,7 BBVA 6,4 BBVA 7,6 MACRO 5,4 MACRO 7,1 HSBC 4,0 HSBC 3,8 CREDICOOP 3,5 INDUSTRIAL 3,6 ICBC 2,7 PATAGONIA 3,0 SUPERVIELLE 2,9 PATAGONIA 2,6 CREDICOOP 1,8 SUPERVIELLE 2,6 HIPO
Slide 19: … with a diversified business model
1Q 19 Results 18 … with a diversified business model MULTICHANNEL STRUCTURE Physical Digital Exclusive Infrastructure Channels Partnerships JV’S ALLIANCES BRANCHES WEB ATM/ATS MOBILE CALL CENTER
Slide 20: and a growth strategy focused on two key goals
1Q 19 Results 19 and a growth strategy focused on two key goals TRANSFORMATION OPEN MARKET Differenciated comercial offering Digitalización Digital acquisition engines Servicing Development of key digital competences
Slide 21: Equity Ownership
1Q 19 Results 20 Equity Ownership SUBSIDIARIES AND EQUITY PARTICIPATIONS OWNERSHIP STRUCTURE BBVA Asset Management 95% BBVA Francés Valores 97% 6,2% PSA Finance 6,9% 50% Free Float 66.55% 33.45% Volkswagen Financial Services 51% 20,3% Rombo Compañía Financiera 40% ByMA ANSES NYSE BBVA Seguros 12.22%
Slide 22: Solid Balance Sheet Structure
1Q 19 Results 21 Solid Balance Sheet Structure Assets Liabilities + Equity Cash 103.990 278.207 Deposits Repo 21.425 Loans 185.306 65.160 Others Other Securities 40.542 Others 36.479 44.375 Stockholder’s Equity 387,742 387,742 Leverage 7.7x LtD ratio 67% Liquid assets/deposits 60.3%
Slide 23: Loans
1Q 19 Results 22 Loans PRIVATE LOANS STRUCTURE Private loans includes loans of BBVA + VW PRIVATE LOANS Credit (MILLION AR$) Cards 43% 55% +33% 53% Personal Loans 30% Mortgages Retail Commercial 13% 181.422 185.306 Car Loans 139.437 PRIVATE LOANS BY CURRENCY 1Q18 4Q18 1Q19 38% 62% MARKET SHARE AR$ 7.
Slide 24: Retail Banking
1Q 19 Results 23 Retail Banking CAR LOANS (MILLION AR$) PERSONAL LOANS 4Q18 + 1Q19 includes VW portfolio (MILLION AR$) +26% +12% 23.587 24.421 5.357 5.406 19.377 4.844 1Q18 4Q18 1Q19 1Q18 4Q18 1Q19 MARKET SHARE 4.92% 5.29% 5.30% 17.77% 15.65% 15.57% Consolidated market share
Slide 25: Retail Banking
1Q 19 Results 24 Retail Banking CREDIT CARDS MORTGAGES (MILLION AR$) (MILLION AR$) +43% +88% 42.509 45.585 31.875 10.110 11.045 5.882 3.182 3.523 3.525 1Q18 4Q18 1Q19 1Q18 4Q18 1Q19 Volume Stock MARKET SHARE 13.03% 13.97% 14.77% 3.22% 3.36% 3.39% Consumption market share
Slide 26: Commercial Banking
1Q 19 Results 25 DISTRIBUTION BY INDUSTRY Comercial Banking 5% Consumer 18% 21% COMMERCIAL LOANS Retailers (MILLION AR$) Basic materials +35% 3% Energy 4% 13% Durable goods 6% Capital goods 99.705 102.293 Infrastructure 15% Agro 75.716 14% Others COMMERCIAL LOANS BY CURRENCY 1Q18 4Q18 1Q19 33% MARKE
Slide 27: Sound risk indicators
1Q 19 Results 26 Sound risk indicators 5% NPL, COVERAGE AND COST OF 4% NPL PEER GROUP AND RISK FINANCIAL SYSTEM (%) (%) 3% 250,5% 2,21% 1,92% System 6,1 2% 1,88% 2,09% 1,32% 119,2% BBVA 2,3 114,4% 1% 0,72% Peer 1 2,0 0% Peer 2 4,0 1Q18 4Q18 1Q19 Coverage NPL Cost of Risk Peer 3 4,2 NPL BY SEGMENT (%
Slide 28: Deposits
1Q 19 Results 27 Deposits DEPOSITS STRUCTURE 34% 54% TOTAL DEPOSITS (MILLION AR$) +74% 2% 11% Current accounts Savings deposits 259.50 278.707 9 Time deposits Others 159.953 DEPOSITS BY CURRENCY 40% 1Q18 4Q18 1Q19 60% MARKET SHARE AR$ 7.39% 7.62% 7.61% USD
Slide 29: Strong capital position
1Q 19 Results 28 Strong capital position CAPITAL RATIO 14,3% 15,3% 14,7% 13,5% 14,6% 13,9% Additional buffer (+3,5%) Minimun Capital Requirement (8%) 1Q18 4Q18 1Q19 Capital Ratio Tier I
Slide 30: 1Q19 Highlights
1Q 19 Results 29 1Q9 Highlights 01 Net Income AR$ 6,008 +288.8% vs. 1Q18 02 Net Interest Income AR$ 9,751 +91.8% vs. 1Q18 03 Net Fee Income AR$ 1,495 +119.9% vs. 1Q18 04 Administrative Expenses AR$ 4,757 +37.1% vs. 1Q18 NPL ratio Coverage ratio 05 Sound risk indicators 2.21% 114.4% Capital Ratio TIE
Slide 31: Digital performance
1Q 19 Results 30 Digital performance % DIGITAL SALES % DIGITAL SALES BY PRODUCT (DIGITAL SALES/TOTAL SALES) 53% 95% 94% 43% 46% 63% 55% 1Q18 4Q18 1Q19 50% 47% 39% % DIGITAL CLIENTS (DIGITAL CLIENTS/RETAIL ACTIVE CLIENTS) 27% 18% 19% 63,6% Personal Loans Credit Cards Insurances Time Deposits Mutual F
Slide 32: Net income and main indicators
1Q 19 Results 31 Net income and main indicators Excluding Prisma results NET INCOME ROE (MILLION AR$ ) (%) 58,8% 6.008 38,4% 3.825 28,5% 2.937 20,4% 1.545 1Q18 4Q18 1Q19 1Q18 4Q18 1Q19 EFFICIENCY ROA (%) (%) 6,6% 56,7% 43,5% 41,6% 4,2% 3,4% 37,0% 2,9% 1Q18 4Q18 1Q19 1Q18 4Q18 1Q19
Slide 33: Net interest income and NIM
1Q 19 Results 32 Net interest income and NIM 18,2% TOTAL NIM 12,2% 13,2% (AR$ + USD) 17,7% NET INTEREST INCOME (MILLION AR$ ) 1.175 24,4% 978 NIM AR$ 17,4% 15,7% 695 9.752 8.463 5.084 1Q18 4Q18 1Q19 5,7% 2,7% 4,0% NIM USD Net Interest Income FX Difference 1Q18 4Q18 1Q19
Slide 34: Fees and Expenses
1Q 19 Results 33 Fees and Expenses NET FEE INCOME ADMINISTRATIVE EXPENSES (MILLION AR$ ) (MILLION AR$ ) 3.563 3.814 2.035 2044 2.196 1.504 1.495 679 1.508 2.570 2.713 -1.355 1.957 -2.059 -2.319 1Q18 4Q18 1Q19 1Q18 4Q18 1Q19 Fee Income Fee Expenses Personnel Expenses Administrative Expenses Net Fee I
Slide 35: BBVA P&L Breakdown
1Q 19 Results 34 BBVA P&L Breakdown 1Q 19 1Q19 4Q18 1Q18 ∆ Q/Q ∆ Y/Y Prisma million $ Ex-Prisma Net Interest Income 9,751 8,463 5,084 15% 91.8% 9,751 Net Fee Income 1,495 1,504 680 (1%) 120% 1,495 Net Income of Financial Instruments 2,460 129 332 1,057% 240% 1,553 907 Foreign Exchange difference 1,1
Slide 36: BBVA 1Q 19 Results
Creando Oportunidades BBVA 1Q 19 Results