- Net Income Surge: Q4 2025 net income rose to ARS 59.3 billion, a 44.5% quarter-over-quarter increase driven by higher income and lower expenses.
- Non-Performing Loans (NPLs): NPL ratio on private loans stood at 4.18% as of December 2025, below the system average, but loan loss allowances surged 31.3% QoQ and 181.2% YoY.
- Net Interest Income (NIM): Total NIM reached 17.5% in Q4 2025, up from 15.2% in Q3 2025, though below 20.2% in Q4 2024, reflecting peso loan yields and FX market dynamics.
- Credit Growth Guidance: Management expects 25-30% real growth in loans by 2026, with a focus on large corporates in H1 and retail recovery in H2.
- Deposit Momentum: Deposits grew faster than the system average, outpacing loan growth in Q4 2025 but expected to decelerate relative to loans in 2026 due to liability expansion.
Asset Quality and Loan Loss Allowances
The non-performing loan ratio on private loans was 4.18% as of December 2025, below the system average. Loan loss allowances increased 31.3% in the quarter and 181.2% year-over-year, reflecting the deterioration of non-performing loans. Management expects credit indicators to improve from 2Q '26 onwards, with a guidance of 25-30% loan growth for 2026. As Carmen Morillo stated, "We believe that first quarter will be a tough one in terms of credit indicators, but from then on, we expect credit indicators to go downwards."
Deposit Growth and Strategy
BBVA Argentina has been growing deposits faster than the system, with a focus on retail, corporate, and wholesale deposits. Management expects deposits to grow below loan growth but above the system average. Diego Cesarini mentioned, "We have been growing on deposits much faster than the system... We still think we have room to keep growing there." The bank's strategy will depend on the system's performance, with a focus on gaining market share.
Valuation and Outlook
With a Price-to-Tangible Book Value (P/TBV) ratio of 1.22 and a Dividend Yield of 2.36%, BBVA Argentina's valuation appears reasonable. The bank's Net Interest Margin (NIM) expansion and guidance for 25-30% loan growth in 2026 are positive factors. Analysts estimate next year's revenue growth at 16.8%. The actual EPS for 4Q '25 was not directly available, but the reported EPS was significantly lower than estimates, at '0.1879' relative to estimates at '0.34'. The bank's strategy and guidance suggest a potential for long-term growth.