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1. Company Snapshot

1.a. Company Description

Banco BBVA Argentina S.A. provides various banking products and services to individuals and companies in Argentina.It provides retail banking products and services, such as checking and savings accounts, time deposits, credit cards, consumer and secured loans, mortgages, insurance, and investment products to individuals; and small and medium-sized companies products and services, including financing products, factoring, checking accounts, time deposits, transactional and payroll services, insurance, and investment products to private-sector companies.The company also provides corporate and investment banking products and services, such as global transaction services; global markets solutions comprising risk management and securities brokerage; long-term financing products, including project finance and syndicated loans; and corporate finance services comprising mergers and acquisitions, and capital markets advisory services to corporations and multinational companies operating in Argentina.


As of December 31, 2021, it operated a network of 243 branches, 15 in-company branches, 7 point of sale outlets, 2 points of express support, 884 ATMs, and 854 self-service terminals, as well as mobile and internet banking services.The company was formerly known as BBVA Banco Francés S.A. and changed its name to Banco BBVA Argentina S.A. in July 2019.Banco BBVA Argentina S.A. was incorporated in 1886 and is based in Buenos Aires, Argentina.

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1.b. Last Insights on BBAR

Negative drivers behind Banco BBVA Argentina S.A.'s recent performance include a decline in net interest income due to a decrease in interest rates and a rise in inflation-adjusted loan losses. The company's non-performing loans (NPLs) increased by 12.5% year-over-year, contributing to higher provisions for credit losses. Additionally, the bank's operating expenses rose by 8.3% year-over-year, driven by higher personnel costs and other expenses. Furthermore, the company's asset quality has deteriorated, with a 10.2% increase in NPLs as a percentage of total loans.

1.c. Company Highlights

2. BBVA Argentina's Q3 2025 Earnings: A Deeper Dive into Performance

BBVA Argentina reported an inflation-adjusted net income of ARS 38.1 billion in Q3 2025, representing a 39.7% quarter-over-quarter decrease. The bank's net interest income was ARS 585.5 billion, decreasing 6.6% quarter-over-quarter, while net fee income increased 37.5% quarter-over-quarter to ARS 137.1 billion. The actual EPS for the quarter came in at 0.13, missing estimates of 0.2. Operating expenses decreased 3.4% quarter-over-quarter to ARS 494.6 billion. The Net Interest Margin (NIM) has been relatively stable throughout the year, except for the third quarter, but is expected to increase in the fourth quarter.

Publication Date: Nov -29

📋 Highlights
  • Net Income Decline:: Q3 2025 inflation-adjusted net income fell 39.7% to ARS 38.1 billion, with ROE at 4.7% and ROA at 0.7%.
  • Loan and Deposit Growth:: Private sector loans rose 6.7% (11.39% market share), while deposits increased 10.2% (10.09% market share).
  • Capital and Guidance:: Capital ratio at 16.7%, with 2025 guidance targeting 45-50% loan growth and 30-35% deposit growth, and 2026 ROE in mid to low teens.
  • Fee Income Surge:: Net fee income jumped 37.5% to ARS 137.1 billion, offsetting a 6.6% drop in net interest income (ARS 585.5 billion).
  • Asset Quality and NPLs:: NPL ratio at 3.28% (below system average), with NPL coverage expected to stay at 98-100% in 2025, peaking by 2026.

Loan and Deposit Growth

The bank's total loans to the private sector grew by 6.7%, with a consolidated market share of 11.39%, while deposits increased by 10.2% in real terms, reaching a market share of 10.09%. BBVA guided for 45-50% real loan growth year-over-year in 2025, mainly driven by companies and dollar-based credits, and deposit growth of around 30-35%.

Asset Quality and Capital Levels

The NPL ratio stood at 3.28%, below the system average. The bank expects asset quality to deteriorate in the fourth quarter due to high interest rates but anticipates an improvement in 2026. BBVA aims to stabilize its capital ratio around 17% by the end of 2025. The risk-weighted assets decreased in Q3 mainly due to the valuation of public sector debt.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) of 1.75, the market is pricing in a certain level of growth for BBVA Argentina. The bank's guidance for an ROE in the high single digits in 2025 and mid to low teens in 2026 suggests potential for improved profitability. Analysts estimate revenue growth of 14.4% for next year. The Dividend Yield stands at 1.27%, providing some support to the stock.

Management's Expectations

The bank's management expects the challenging environment to continue in Q4 2025 but anticipates an improvement in 2026, with a focus on driving activity, maintaining operational efficiency, and generating sustained value for shareholders. As management stated, they are focused on "driving activity, maintaining operational efficiency, and generating sustained value for shareholders," indicating a positive outlook for the bank's future performance.

3. NewsRoom

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Banco BBVA Argentina S.A. (BBAR) Q3 2025 Earnings Call Transcript

Nov -26

Source: seekingalpha.com

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BBVA Argentina Announces Third Quarter 2025 Financial Results

Nov -25

Source: businesswire.com

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BBVA Argentina announces Third Quarter 2025 Financial Results Schedule

Nov -11

Source: businesswire.com

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Banco BBVA Argentina S.A. (BBAR) Q2 2025 Earnings Call Transcript

Aug -21

Source: seekingalpha.com

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BBVA Argentina Announces Second Quarter 2025 Financial Results

Aug -20

Source: businesswire.com

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BBVA Argentina Announces Second Quarter 2025 Financial Results Schedule

Aug -06

Source: businesswire.com

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Banco BBVA Argentina S.A. (BBAR) Q1 2025 Earnings Call Transcript

May -22

Source: seekingalpha.com

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BBVA Argentina announces First Quarter 2025 Financial Results

May -21

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.87%)

6. Segments

Banking

Expected Growth: 5.87%

Banco BBVA Argentina S.A.'s 5.87% growth is driven by increasing demand for credit, particularly in the mortgage and consumer lending segments. Strong economic growth, low unemployment, and rising consumer confidence in Argentina also contribute to the growth. Additionally, the bank's digital transformation efforts and expansion of its branch network have improved operational efficiency and enhanced customer experience.

7. Detailed Products

Personal Banking

Banco BBVA Argentina S.A. offers a range of personal banking services, including current and savings accounts, credit cards, personal loans, and investment products.

Business Banking

The bank provides business banking services, including business loans, credit lines, and cash management solutions, to support the growth of small and medium-sized enterprises.

Corporate Banking

Banco BBVA Argentina S.A. offers corporate banking services, including treasury management, trade finance, and risk management solutions, to large corporations and institutions.

Investment Banking

The bank provides investment banking services, including mergers and acquisitions advisory, equity and debt capital markets, and leveraged finance.

Wealth Management

Banco BBVA Argentina S.A. offers wealth management services, including investment advice, portfolio management, and estate planning, to high net worth individuals.

Digital Banking

The bank provides digital banking services, including online banking, mobile banking, and digital payments, to individuals and businesses.

8. Banco BBVA Argentina S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Banco BBVA Argentina S.A. is medium due to the presence of alternative banking services and digital payment platforms.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of switching options and the complexity of banking services.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers of technology and infrastructure services.

Threat Of New Entrants

The threat of new entrants is high due to the growing trend of fintech companies and digital banking platforms.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple banks and financial institutions in Argentina, leading to a competitive market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 4.41%
Debt Cost 11.78%
Equity Weight 95.59%
Equity Cost 11.78%
WACC 11.78%
Leverage 4.61%

11. Quality Control: Banco BBVA Argentina S.A. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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BAWAG

A-Score: 7.3/10

Value: 4.5

Growth: 7.2

Quality: 7.2

Yield: 8.8

Momentum: 9.5

Volatility: 6.3

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Bladex

A-Score: 7.2/10

Value: 4.8

Growth: 4.3

Quality: 5.6

Yield: 10.0

Momentum: 8.5

Volatility: 10.0

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PKO Bank Polski

A-Score: 7.0/10

Value: 5.8

Growth: 8.6

Quality: 6.8

Yield: 10.0

Momentum: 7.0

Volatility: 3.7

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IBOC

A-Score: 7.0/10

Value: 6.2

Growth: 7.1

Quality: 8.3

Yield: 5.0

Momentum: 6.5

Volatility: 8.7

1-Year Total Return ->

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Banco BBVA Argentina

A-Score: 5.3/10

Value: 7.6

Growth: 9.5

Quality: 6.5

Yield: 5.0

Momentum: 1.5

Volatility: 1.7

1-Year Total Return ->

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Inter & Co

A-Score: 4.4/10

Value: 2.5

Growth: 6.3

Quality: 4.4

Yield: 0.0

Momentum: 8.5

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.69$

Current Price

16.69$

Potential

-0.00%

Expected Cash-Flows