Banco BBVA Argentina Sa · BCBA:BBARB
Banco BBVA Argentina Sa — BBVA Argentina — Investor Presentation (March 2020)
47 slides from Banco BBVA Argentina Sa's investor presentation, March 2020
Slide 1: BBVA Argentina 2019 Corporate Presentation
BBVA Argentina 2019 Corporate Presentation March 2020
Slide 2: Safe Harbour Statement
Corporate Presentation 2019 1 Safe Harbour Statement This presentation contains certain forward-looking statements that reflect the current views and/or expectations of Banco BBVA Argentina and its management with respect to its performance, business and future events. We use words such as “believe,
Slide 3: Macro view
Corporate Presentation 2019 2 Macro view POLITICS Alberto Fernández Government is going through its first months, focused in stabilizing the economy and public debt Main variables restructuring. As of March 4, 2020 The “Juntos por el Cambio” front is still present, showing ability to negotiate in th
Slide 4: BBVA Argentina 2019 highlights
BBVA Argentina 2019 highlights In-company Total assets Loans to the Total branches branches private sector Deposits 251 15 AR$440.3 bn AR$201.5 bn AR$294.0 bn Customer ATMs service booths Net Interest Income Net Income 887 2 Net Fee Income Op. Expenses* ATSs Employees** AR$55.2 bn AR$6.6 bn AR$44.7
Slide 5: Financial System
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Slide 6: Adequate systemic levels of liquidity and solvency
Corporate Presentation 2019 5 Adequate systemic levels of liquidity and solvency 60.1 56.6 57.5 49.0 46.7 LIQUIDITY (%) 42.6 Cash + net repos with BCRA+ BCRA bills/Total Deposits 16.7 16.3 17.5 15.6 16.0 13 CAPITAL (%) Capital/RWA according to BCRA regulation 5.00 4.80 5.60 3.10 NPL (%) 1.80 1.80 Ir
Slide 7: Positive nominal and real profitability for private banks
Corporate Presentation 2019 6 Positive nominal and real profitability for private banks ROE (ACCUMULATED ANNUALIZED) AND INFLATION BBVA ROE 60.6% 59.2% 55.6% 47.6% 53.5% 53.8% 44.4% 41.4% 39.4% 32.4% 36.1% 31.2% 29.6% 26.6% 35.6% 24.8% 29.4% 26.9% 23.4% 2015 2016 2017 2018 3Q19 4Q19 Inflation YoY Pr
Slide 8: A small financial system with good infrastructure, ready for potential growth
Corporate Presentation 2019 7 A small financial system with good infrastructure, ready for potential growth LATAM PRIVATE LOANS AND TOTAL DEPOSITS BRANCHES AND ATMs/100,000 ADULT POPULATION (% of GDP) (Branches and ATMs / 100,000 adult population) 94.7% 73.6 58.9 49.9 60.1% 42.3 45.5% 40.7% 34.7% 32
Slide 9: Financial System Private Growth Rates
Corporate Presentation 2019 8 Financial System Private Growth Rates RETAIL & COMMERCIAL LOANS GROWTH DEMAND & TIME DEPOSITS GROWTH (YoY %) (YoY %) 80% 80% 60% 60% 40% 40% 30% 25% 20% 20% 19% 16% 16% 15% 0% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2
Slide 10: BBVA Argentina
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Slide 11: A leading bank…
Corporate Presentation 2019 10 A leading bank… Assets (AR$ bn - % Market Share) Liabilities (AR$ bn - % Market Share) 6,732 5,836 20.7% 19.7% 26.4% 25.4% 8.9% 9.2% 9.5% 8.9% 8.5% 8.1% 6.4% 6.3% 1,780 6.3% 5.7% 1,480 1,325 4.4% 3.7% 1,206 4.6% 3.8% 3.4% 3.3% 3.5% 3.2% 596 621 548 431 425 557 518 494
Slide 12: …in a fragmented financial system…
Corporate Presentation 2019 11 …in a fragmented financial system… Total Private Loans (AR$ bn - % Market Share) Total Private Deposits (AR$ bn - % Market Share) 2,804 4,837 7.7%* 23.1% 17.0% 24.2% 23.1% 11.1% 9.9% 8.8% 7.8% 6.7% 4.1% 9.8% 3.9% 3.4% 3.0% 678 6.1% 5.4% 477 1,115 9.3% 8.2% 4.5% 4.0% 3.
Slide 13: …with a diversified business model
Corporate Presentation 2019 12 …with a diversified business model MULTICHANNEL STRUCTURE Physical Exclusive Structure Partnerships Branches JVs ALLIANCES ATM/ATS Digital Call center Channels Customer service booth Web POS* In-Company banks Mobile *POS: Includes points of sale in supe
Slide 14: 2019 Financial Results
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Slide 15: 2019 Highlights
Corporate Presentation 2019 14 2019 Highlights 01 Net Income AR$ 31.4 bn +223.0% YoY 02 Net Interest Income AR$ 55.2 bn +111.4% YoY 03 Net Fee Income AR$ 6.6 bn +20.4% YoY 04 Operating expenses AR$ 44.7 bn +81.3% YoY NPL ratio Coverage ratio 05 Risk indicators 3.57% 113.04% 06 Strong capital positio
Slide 16: Balance Sheet Structure
Corporate Presentation 2019 15 Balance Sheet Structure ASSETS LIABILITIES & EQUITY (AR$ billions) (AR$ billions) 355 388 393 414 440 355 388 393 414 440 8% 9% 8% 9% 8% 11% 11% 12% 14% 15% 47% 45% 51% 48% 50% 11% 73% 72% 73% 66% 67% 12% 17% 21% 18% 35% 28% 27% 23% 23% 2018 1Q19 2Q19 3Q19 2019 2018 1Q
Slide 17: Loans – Prudential Reduction of USD Loans
Corporate Presentation 2019 16 Loans – Prudential Reduction of USD Loans TOTAL PRIVATE LOAN PORTFOLIO NET PRIVATE LOANS STRUCTURE (AR$ billions) +15% 176 184 185 212 201 -39.9% 18% 29% 35% 39% 37% Retail* + 43.6% 59% Personal Loans 22.4% 82% Mortgages 71% 12.0% 65% 63% Corporate 61% 17% Car Loans 15
Slide 18: Loans by Segment
Corporate Presentation 2019 17 Loans by Segment BBVA (% over total private loans) RETAIL (%) 59% OF PRIVATE LOANS 176 184 185 212 201 Personal 20% 21% 30% 34% 38% 37% Credit Card 4% Pledge AR$ 118 bn 61% 7% 8% 36% Mortgage 12% 24% 25% 26% 25% COMMERCIAL (%) 7% 4% 5% 8% 7% 41% OF PRIVATE LOANS 13% Ov
Slide 19: Retail Loan Portfolio
Corporate Presentation 2019 18 Retail Loan Portfolio PERSONAL LOANS CREDIT CARDS (AR$ billions) (AR$ billions) -0.4% +73% 24 24 24 24 23 72 53 48 45 42 2,107 2,211 2,248 2,063 2,085 2018 1Q19 2Q19 3Q19 2019 2018 1Q19 2Q19 3Q19 2019 Credit Cards Credit Card Stock (in thousands) PERSONAL LOANS MARKET
Slide 20: Retail Loan Portfolio
Corporate Presentation 2019 19 Retail Loan Portfolio AUTO LOANS (CONSOLIDATED, PRO- FORMA) MORTGAGE LOANS (AR$ billions) (AR$ billions) -14% +40% 14 19.5 13 18.7 12 17.8 17.6 16.8 11 10 17.88 17.06 16.31 16.09 15.50 1.65 1.63 1.54 1.46 1.35 2018 1Q19 2Q19 3Q19 2019 2018 1Q19 2Q19 3Q19 2019 Bank only
Slide 21: Commercial Banking Loan Portfolio
Corporate Presentation 2019 20 Commercial Banking Loan Portfolio COMMERCIAL LOANS COMMERCIAL LOANS BY CURRENCY (%) (AR$ billions) -16% 99 102 99 105 83 -49% USD +48% ARS 52% USD 61% 60% 41% 68% 69% ARS 2% 59% 2% 2% 29% 2% 2% 21% 25% 22% 19% 12% 17% 17% 8% 10% 2018 1Q19 2Q19 3Q19 2019 Overdrafts Docu
Slide 22: Deposits
Corporate Presentation 2019 21 Deposits TOTAL PRIVATE DEPOSITS PRIVATE DEPOSITS STRUCTURE (AR$ billions) +13% IN AR$ (%) Time deposits Savings accounts 258 277 281 272 291 29% 39% 44% 48% 47% 44% 40% AR$ 175 bn Other 2% Currenct account 31% 60% 56% 56% 52% 53% IN USD (%) Savings accounts 84% 2018 1Q
Slide 23: Outstanding Results despite a Challenging Environment
Corporate Presentation 2019 22 Outstanding Results despite a Challenging Environment NET INCOME ROE (%) (AR$ billions) +223% +3,212bps 31.4 60.6% 9.7 28.5% 2018 2019 2018 2019 ROA (%) EFFICIENCY (%) +449 bps -1,191 bps 7.9% 48.9% 37.0% 3.4% 2018 2019 2018 2019
Slide 24: Robust Core Revenue Growth
Corporate Presentation 2019 23 Robust Core Revenue Growth NET INTEREST INCOME (AR$ billions) +111% 94 Interest Income Financial Sector Other Interest Income 47 Commercial NII growth based on Retail Appropriate liquidity management Client spread improvement From Private and Public Securities High int
Slide 25: Further Improvement in Best-in-Class Efficiency
Corporate Presentation 2019 24 Further Improvement in Best-in-Class Efficiency NET FEE INCOME OPERATING EXPENSES (AR$ billions) (AR$ billions) Efficiency Ratio 37% vs. +20% +81% 49% in 2018 14 11 5.5 3.2 18.0 7 0.8 12.4 0.4 6.6 2.4 3.8 5.5 3.5 0.2 2.2 -6.9 3.6 4.1 -11.4 2.6 2018 3Q19 2019 Personnel
Slide 26: Sound Risk Indicators
Corporate Presentation 2019 25 Sound Risk Indicators NPL & COVERAGE* (%) NPL PEER GROUP & FINANCIAL SYSTEM (%) 4.0% 3.64% 120.0% 3.5% 3.32% 3.28% 118.0% 116.0% System 5.60% 3.0% 2.73% 114.0% 2.5% 1.93% 112.0% SUPV 7.40% 1.88% 2.50% 2.0% 2.30% 110.0% 1.5% 108.0% GGAL 5.52% 106.0% 1.0% 104.0% 3.57% BB
Slide 27: Limited Public Sector Exposure
Corporate Presentation 2019 26 Limited Public Sector Exposure % PUBLIC SECTOR EXPOSURE (EXCL. BCRA) /TOTAL BBVA PUBLIC SECTOR EXPOSURE ASSETS (AR$ billions) 23.8 17.9 16.1 50% 44% 53% 10.4% 10.0% 1% 9.7% 1% 13% 8.4% 48% 54% 33% 6.7% 4Q18 3Q19 4Q19 Public Debt in pesos Public Debt in US dollars Publi
Slide 28: Liquid Assets – Improvement in Mix Structure
Corporate Presentation 2019 27 Liquid Assets – Improvement in Mix Structure TOTAL LIQUID ASSETS PRIVATE DEPOSIT BASE (%) (%) +18% +13% 173 168 173 169 205 258 277 281 272 291 3% 4% 9% 13% 16% 14% 32% 29% 33% 34% 33% 33% 32% 8% 18% 8% 2% 6% 8% 2% 2% 2% 2% 4% 9% 11% 4% 52% 71% 51% 51% 53% 55% 54% 54%
Slide 29: Strong Capital Position
Corporate Presentation 2019 28 Strong Capital Position 17.1% 17.8% 17.2% 14.3% 16.4% 13.5% Additional buffer (+3,5%) Minimum Capital Requirement (8%) 4Q18 3Q19 4Q19 Capital Ratio Tier I
Slide 30: BBVA Purpose
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Slide 31: To bring the age of opportunity to everyone
BBVA Defined a New Strategy in 2015: To Boost its Transformation OUR PURPOSE STRATEGIC PRIORITIES Better client experience To bring Digital sales the age of opportunity New business models to everyone Optimization of capital allocation OUR VALUES Leading efficiency Customer comes first The best team
Slide 32: BBVA Argentina Digital Client Strategy Approach
Corporate Presentation 2019 31 BBVA Argentina Digital Client Strategy Approach Client acquisition as a key corporate strategic asset for growth Since 2017, active clients increased 13% Healthy NPL ratio More than 290,000 clients. With an approach in open market. Successfully acquiring clients Payrol
Slide 33: BBVA Argentina Active Clients
Corporate Presentation 2019 32 BBVA Argentina Active Clients Since 2017, active clients increased 13%, more than 290,000 MORE active customers MORE active credit cards INCREASING credit card share In thousands In thousands +13% +18% 2,642 0.75 12.6% 12.5% 53 12.2% 2,515 11.4% 0.74 46 10.3% 11.1% 2,3
Slide 34: Geographic Structure as of December 2019
Corporate Presentation 2019 33 Geographic Structure as of December 2019 Successfully acquiring clients without increasing the number of branches Clients per branch increased 12% from 2017 to 2019 BBVA SUPV GAL BMA CABA 33% CABA 23% CABA 32% CABA 7% Prov Bs. As 34% Prov Bs. As 39% Prov Bs. As 37% Pro
Slide 35: Latest Digital Actions
Corporate Presentation 2019 34 Ahead of Curve in Digital Transformation Based on Global Strategy More than half of new clients come through digital media Latest Digital Actions DIGITAL ACTIVE CLIENTS MOBILE ACTIVE CLIENTS MILLION, % GROWTH MILLION, % GROWTH +36% +63% Time deposits 1.76 1.43 First pr
Slide 36: Transformation Driving Digital Sales and Client Acquisition
Corporate Presentation 2019 35 Transformation Driving Digital Sales and Client Acquisition DIGITAL SALES (% OF TOTAL SALES YTD, % OF TRANSACTIONS AND PRV1) 78.6% DIGITAL SALES Digital client 61.9% acquisition strategy 57.1% 55.7% based on a variable-cost PRV selling model, exclusive 46.8% 45.2% UNIT
Slide 37: Asset Quality – Change in Allowances Strategy
Corporate Presentation 2019 36 Asset Quality – Change in Allowances Strategy NPL as a % of total lending 5.6% 4.9% 4.4% 4.4% 3.3% 3.6% 3.1% 3.1% 1.8% 1.6% 1.8% 1.8% 1.9% 0.8% 1.3% 2016 2017 2018 3Q19 4Q19 Allowances as a % of NPLs 263% 262% 140% 145% 151% 132% 119% 121% 106% 105% 111% 113% 112% 93%
Slide 38: Payroll Acquisition
Corporate Presentation 2019 37 Payroll Acquisition New clients, increasing payroll market share, sight deposits and cross-sell opportunities MORE payroll customers INCREASING payroll share In thousands +18% +195 bps 10.53% 9.46% 8.58% 2017 2018 2019 2017 2018 2019 Source: Ministerio de Trabajo de la
Slide 39: Appendix
iting Opportunities Cle Appendix
Slide 40: Equity Ownership
Corporate Presentation 2019 39 Equity Ownership SUBSIDIARIES AND EQUITY OWNERSHIP STRUCTURE PARTICIPATIONS BBVA Asset Management Argentina 6.9% 100% 6.2% BBVA Francés Valores** 97% Free Float 26.51% 20.3% PSA Finance* 612.7 million 50% Grupo BBVA shares Volkswagen Financial 66.55% Services* 51% Romb
Slide 41: BBVA Argentina Outstanding Corporate Bond Debt
Corporate Presentation 2019 40 BBVA Argentina Outstanding Corporate Bond Debt Nominal Amount Coupon Rating Series Issue Date Maturity Coupon (thousands AR$) Frequency (FixCSR) Floating +4.25% (Badlar - Class 24 12/27/2017 546,500 12/27/2020 Quarterly AAA (Arg) Private Banks) Class 25 11/8/2018 784,3
Slide 42: Dividends
Corporate Presentation 2019 41 Dividends Net Income Dividends (millions Total shares Dividends per Dividends per ADS Year Payout Ratio Payment date (millions AR$) AR$) (millions) share (AR$) (AR$) 2018 9,705 2,407 612.7 3.93 11.79 25% 05/16/2019 2017 3,878 970 612.7 1.58 4.75 25% 05/09/2018 2016 3,6
Slide 43: BBVA Argentina P&L Breakdown
Corporate Presentation 2019 42 BBVA Argentina P&L Breakdown Income Statement BBVA Argentina consolidated Chg % In millions $ except EPS and ADS 2019 2018 YoY Net Interest Income 55,224 26,129 111.4% Net Fee Income 6,629 5,504 20.4% Net income/loss from measurement of financial instruments at fair 7,
Slide 44: BBVA Argentina Balance Sheet
Corporate Presentation 2019 43 BBVA Argentina Balance Sheet Balance Sheet BBVA ARG consolidated Chg% In millions $ 4Q19 3Q19 4Q18 QoQ YoY Assets Cash and Deposits in banks 156,260 94,168 99,106 65.9% 57.7% Cash 46,724 28,259 15,571 65.3% 200.1% Financial institutions and correspondents 109,536 65,90
Slide 45: BBVA Argentina Balance Sheet
Corporate Presentation 2019 44 BBVA Argentina Balance Sheet Balance Sheet BBVA ARG consolidated Chg% In millions $ 4Q19 3Q19 4Q18 QoQ YoY Liabilities Deposits 293,988 274,487 259,509 7.1% 13.3% Non-financial public sector 2,938 2,642 1,545 11.2% 90.2% Financial sector 178 314 294 (43.3%) (39.5%) Non
Slide 46: Inflation Adjustments
Corporate Presentation 2019 45 Inflation Adjustments Inflation Adjustment (in ARS MM) 2019 2018 Income for the period (1) 31.351 9.705 Non-controlling Interests (2) 343 91 Income for the period attributable to: Owners of the parent (3) = (1) - (2) 31.008 9.614 Other Comprehensive Income (4) (3.416)
Slide 47: Investor Relations Contact
Investor Relations Contact [email protected] www.ir.bbva.com.ar