NYSE:BBAR Banco BBVA Argentina Q4 2023 Earnings Report $19.52 -0.12 (-0.61%) Closing price 05/2/2025 03:59 PM EasternExtended Trading$19.53 +0.01 (+0.05%) As of 05/2/2025 07:57 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast Banco BBVA Argentina EPS ResultsActual EPS$0.59Consensus EPS $0.09Beat/MissBeat by +$0.50One Year Ago EPS$0.53Banco BBVA Argentina Revenue ResultsActual Revenue$2.67 billionExpected Revenue$592.18 millionBeat/MissBeat by +$2.07 billionYoY Revenue GrowthN/ABanco BBVA Argentina Announcement DetailsQuarterQ4 2023Date3/5/2024TimeAfter Market ClosesConference Call DateWednesday, March 6, 2024Conference Call Time10:00AM ETUpcoming EarningsBanco BBVA Argentina's Q1 2025 earnings is scheduled for Wednesday, May 28, 2025, with a conference call scheduled on Thursday, May 22, 2025 at 8:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Banco BBVA Argentina Q4 2023 Earnings Call TranscriptProvided by QuartrMarch 6, 2024 ShareLink copied to clipboard.There are 5 speakers on the call. Operator00:00:00Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to BBVA Argentina's 4th Quarter and Fiscal Year 2023 Results Conference Call. We would like to inform you that this event is being recorded and all participants will be in listen only mode during the company's presentation. After the company's prepared remarks are completed, there will be a question and answer section. At that time, further instructions will be given. Operator00:00:40First of all, let me point out that some of the statements made during this conference call may be forward looking statements within the meaning of the Safe Harbor provisions found in Section 27A of the Securities Act of 1933 under U. S. Federal Securities Law. These forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward looking statements. Additionally, information concerning these factors is contained in BBVA Argentina's Annual Report on Form 20F for the fiscal year 2022 filed with the U. Operator00:01:25S. Securities and Exchange Commission. Today with us, we have Ms. Carmen Morella Arellio, CFO Ms. Ines La Nuce, IRO and Ms. Operator00:01:39Belen Forcada, Investor Relations. Ms. Forcada, you may begin your conference. Speaker 100:01:48Good morning, and welcome to VVA Argentina's 4th Quarter and Fiscal Year 2023 Results Conference Call. Today's webinar will be supported by a slide presentation available on our Investor Relations website on the Financial Information section. Speaking during today's call will be Ines La Nuce, our Investor Relations Officer and Thanhmo Moricio Rocho, our Chief Financial Officer, who will be available for the Q and A session. Please note that starting January 1, 2020, as per Central Bank Regulation, we have begun reporting results applying hyperinflation accounting pursuant to IFRS rule IAS 29. For a result of comparability, 20222023 figures have been restated to reflect the accumulated effect of inflation adjustment for each period through December 31, 2023. Speaker 100:02:41Now let me turn the call over to Ines. Speaker 200:02:44Thank you, Helene, and thank you all for joining us today. 2023 ends with a new elected governing party, which has announced an adjustment plan to start correcting the strong macroeconomic distortions, which among others include a significant reduction of fiscal deficit and the depreciation of the local currency to ease FX restrictions. In a context where uncertainty remains high, BBVA Research estimates an annual inflation near 175% by the end of 2024 and expect GDP to fall 4% this year as of the date of this report. It is expected that the most intense recession and inflationary acceleration should happen in the 1st semester, while expectations improve for the 2nd part of the year. In spite of its impact in the short term and high associated risks, these adjustments could state the basis for a sustained reduction in inflation and a recovery in a potential growth for the economy from the second half of twenty twenty four onwards. Speaker 200:03:49Now moving into business dynamics. As you can see on Slide 3 of our webcast presentation, our service offering has evolved in such a way that by the end of December 2023, retail digital clients penetration reached 62%, while retail mobile clients reached 57%. The response on the side of the customers has been satisfactory and we are convinced this is a path to pursue in the aim of sustaining and expanding our competitive position in the financial system. Retail digital sales measured in units reached 93.2% in the Q4 of 2023 and represent 69.8% of the bank's total sales measured in monetary value. New customers acquisition through digital channels reached 75% in the Q4 of 2023 from 72% in the Q4 of 2022. Speaker 200:04:48The bank actively monitors its business, financial conditions and operating results in the aim of keeping a competitive position to face contextual challenges. Moving to Slide 4, I will now comment on the bank's Q4 2023 and fiscal year 2023 financial results. PBA Argentina's inflation adjusted net income in the Q4 of 2023 was ARS48.6 billion, 220.8 percent higher than the net income in the Q3 of 2023. This implied a quarterly ROE of 15.3% at a quarterly ROA of 3.2%. EBITDA Argentina's inflation adjusted net income for the 12 months of 2023 totaled ARS 164.9 billion, 8.6 percent lower than the 12 months of 2022. Speaker 200:05:47In 2023, PBA's Argentina posted an inflation adjusted ROA of 2.7% and an inflation adjusted ROE of 13%. Operating income in the Q4 of 2023 was ARS 400 and 77,900,000,000, 86.4 percent higher than in the Q3 of 2023, while in the year the accumulated operating income reached ARS1.19 trillion, 86.4 percent above the one recorded in 2022. Quarterly operating results are mainly explained by 1, better foreign exchange income, especially due to a greater position in dual national treasury bonds 2, better net interest income results 3, better net income from write down of asset at amortized cost and at fair value through OCI, mainly due to the sale of inflation linked funds and for lower administrative expenses. Net income for the period was highly impacted by income from net monetary position as inflation in the Q3 of 2023 was lower than the Q4 of 2023, reaching 53.9% in the Q4 of 2023 compared to 34.8% in the Q3 of 2023. On an annual basis, the 86 0.4% increment in real terms of the bank's operating income is mainly explained by an increase in interest income, mostly due to an increase in the position and yield of Central Bank Instruments and share bonds as well as interest from loans. Speaker 200:07:31In 2023, what also stands out is the increase in the foreign exchange income due to the higher position in dollar as assets and net income from write down of asset at fair value of the OCI, mainly due to the sale of corporate bonds in the Q3 of 2023 and the exercise of a put option on inflation linked bonds in the Q4 of 2023. Another factor to consider in the annual comparison is the income tax line, which represented only MXN 1 200,000 loss in 2022, explained by the implication of fiscal inflation adjustment in the determination of payable taxes and tax deferral. Last but not least, net income in 2023 is affected by income from net monetary position in a context of higher inflation, which reached 211.4% in 2023 versus 94.8% in 2022. Turning into the P and L lines, in Slide 5, 6 and 7, net interest income for the Q4 of 2023 was ARS495.7 million, increasing 19.7% quarter over quarter. In the Q4 of 2023, interest income in monetary terms decreased more than interest expenses, mainly due to lower income from government securities. Speaker 200:09:02In the Q4 of 2023, the decrease in interest income is mainly driven by the fall in income from government securities, especially in LILIC, which issuance was terminated by the Central Bank in December 2023, reducing its volume on year end. This was partially offset by better income from repo premiums and more income from inflation linked bonds and lifts. Interest expenses totaled ARS383.9 billion, denoting a 20.9% decrease quarter over quarter. Quarterly decline is described by lower time deposits and checking account expenses, in particularly interest bearing checking accounts. Interest from time deposits, including investment accounts, explained 71.2% of interest expenses versus 70.5% in the previous quarter. Speaker 200:09:57Net fee income as of the Q4 of 2023 totaled ARS 35,600,000,000, increasing 36.9%. In the Q4 of 2023, fee income totaled MXN 70,700,000, increasing 18.8 percent quarter over quarter. The quarterly increase is mainly explained by a 41.9% growth in fee from credit cards due to a lower expenses related to Punta Parejo loyalty program and higher activity combined with an increase in prices. Regarding fee expenses, these totaled ARS 35,200,000,000, increasing 4.7% quarter over quarter. Greater expenses are explained by fees paid in foreign exchange related to royalties affected by the devaluation of the local currency and payroll marketing campaigns. Speaker 200:10:53In the Q4 2023, loan loss allowances increased 74.9%. The increase is explained by the accounting re expression of loan loss allowances in the foreign currency portfolio. During Q4 2023, total operating expenses were ARS 211,700,000, increasing 0.6 percent quarter over quarter, of which 32% were personal benefit costs. Personal benefits increased 2.6% quarter over quarter. The quarterly change is mainly explained by the inflation adjustment of vacation stock provisions and variable compensations. Speaker 200:11:36This adjustment is applied retroactively to the last 12 months. As of the Q4 of 2023, administrative expenses fell 29.5% quarter over quarter. These were explained by an increase in the amount of services contracted with the parent company, offset by the update of the provision of these expenses in line with the FX rate depreciation estimated at the quarter end. Being this said, the quarterly efficiency ratio as of the Q4 of 2023 was 46.4%, improving compared to the 82.4% reported in the Q3 of 2023. The quarterly decrease is explained by a decrease in expenses and an increase in net income, especially due to an increase in results from income from foreign exchange as well as income from write down of assets at amortize cost and OCI. Speaker 200:12:35The accumulated efficiency ratio as of the Q4 of 2023 was 58.6%, improving compared to the 63.8% reported in the Q3 of 2023. The improvement in this ratio is due to a lower increase in expenses versus net income. This positive variation in the ratio is also due mainly to better income from write down of assets and more so that cost and OCI and income from foreign exchange. In terms of activity on Slide 8, Private Sector loans as of the Q4 of 2023 totaled ARS 2,000,000,000,000, decreasing 5.7 percent quarter over quarter and 12.3% year over year. Loans to the private sector in pesos fell 9% in the Q4 of 2023. Speaker 200:13:27During the quarter, the decrease was especially driven by a general decline in loans. The decrease was partially offset by a 1.6% increase in overdrafts driven by greater activity. Loans to the private sector denominated in foreign currency increased 41.1 percent quarter over quarter. Quarterly increase is mainly explained by a 54.7% growth in financial and pre financing of exports. Loans to the private sector and foreign currency measured in U. Speaker 200:14:00S. Dollars, decreased 6.1% quarter over quarter. During the quarter, the retail portfolio fell 11.7% and the commercial portfolio increased 0.9%. As observed in the previous quarters, loans portfolio were impacted by the effect of inflation during the Q4 of 2023, which reached 53.3%. In nominal terms, BBA Argentina managed to increase the retail, commercial and total loan portfolio by 35.3%, 54.7% and 45.2%, respectively, only surpassing quarterly inflation levels in the case of commercial loans. Speaker 200:14:45BBA Argentina's consolidated market share of private sector loans reached 9.85% as of the Q4 of 2023, improving from 9.10% annual year ago. As of the Q4 of 2023, asset quality ratio keeps a very good performance at 1.29 percent in line with the good behavior of both retail and commercial portfolios. The lower decrease of the total loan portfolio versus that of the non performing portfolio is explained by a growth in commercial loans driven by a devaluation of the FX rate without significantly affecting client credit behavior. On the funding side, as seen on Slide 9, private non financial sector deposits in the Q4 of 2023 totaled ARS3.1 trillion, decreasing 8.6 percent quarter over quarter. The bank's consolidated market share of private deposits reached 6.79% as of the Q4 of 2023. Speaker 200:15:50Private non financial sector deposits in pesos decreased 26.1% compared to the Q3 of 2020P. The quarterly change is mainly fall in checking accounts, the later driven by the bank's strategy of reducing interest bearing checking accounts. Private non financial sector deposits in foreign currency expressed in pesos increased 63.4% quarter over quarter. This is mainly explained by seasonal factors. In terms of capitalization, BBA Argentina continues to show strong solvency indicators on the Q4 of 2023. Speaker 200:16:38Capital ratio reached 32.8%. Growth in the ratio was mainly driven by an increase in capital, mainly due to better OCI results in the Q4 of 2023. Exposure to the public sector in the Q4 of 2023, excluding Central Bank instruments, represented 15.9% of total assets, above the 12.7% in the Q3 of 2023 and below the 22.4% reported by the system as of December 2023. The bank's total liquidity ratio remained healthy at 91.2 percent of total deposits as of December 31, 2023. This concludes our prepared remarks. Speaker 200:17:23We will now take your questions. Operator, please open the line for questions. Operator00:17:28We will now begin the question and answer Our first question comes from Walter Treverzio with Santander. Please go ahead. Speaker 300:17:57Hi, good morning. Thank you for taking my question. I would like to understand what you are envisioning or the dynamics in the next 12 months are probably beyond that. Speaker 100:18:16Still a Speaker 300:18:17large part of the profitability of the banks in Argentina come from this position to exposure to the public sector, particularly treasury bonds now. But if the economic plan is successful, probably we will see low inflation rates towards 2nd part of the year, and banks will start to shift their portfolio from the public sector to the private sector lending. How do you envision that? How do you think that or what is your strategy? What is the role of the Central Bank with this put that you have to sell the bonds to the Central Bank in order to shift the portfolio to the private sector loans? Speaker 300:19:03What is the dynamic that you've ambitious for the rest of the year? Thank you. Speaker 400:19:09Hi, Walter. How are you doing? Okay. Let me start by the first part of your question. I would highlight from the results we presented for 2023 that despite the scenario you have been describing, high inflation around 211 and still being high although a little bit smaller for lower for 2024. Speaker 400:19:34We're projecting 175 inflation year end. With what happened with the monetary policy rate that went up and then went down with the devaluation. And as you mentioned, with banks mainly lending acquiring bonds because of the lack of demand, BBVA in particular has been able to keep lending and increasing our market share. Our market share during 2023 increased 75 basis points. And that is something that I would like to highlight because we believe that what the bank needs to do is despite the context, keep lending. Speaker 400:20:18Going forward, we still see or we still project a contraction in real terms of the loan growth. For the system, we are projecting a 24% decrease in real terms, but the bank should be decreasing less, around 11%. So we still are aiming to keep increasing our market share and also in parallel increase our active players that as you've seen in our presentation has increased 10% from the figures of last year. So moving forward, we believe there are still a lot of moving parts to be able to define when this pickup in lending will start. But the bank is committed to keep lending and increasing market share and start switching our positions in bonds and Central Bank instruments that we have in our assets by loans. Speaker 400:21:24That is the commitment and where we are aiming for the next years. But we need the macroeconomic scenario to start Speaker 300:21:32changing. Okay, perfect. Thank you very much, Ines. Operator00:21:46This concludes our question and answer session. At this time, I would like to turn the floor back to Ms. Linoosa for any closing remarks. Speaker 400:21:56Okay. Thank you very much for your time, and let us know if you have further questions. Have a good day. Operator00:22:03Thank you. This concludes today's presentation. You may now disconnect your line at this time and have a nice day.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallBanco BBVA Argentina Q4 202300:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K) Banco BBVA Argentina Earnings HeadlinesBanco BBVA Argentina Approves Key Financial Resolutions at Shareholders MeetingApril 24, 2025 | tipranks.comBanco BBVA Argentina Prepares for April 23 Shareholders MeetingApril 10, 2025 | tipranks.comTrump to redistribute trillions of dollars Trump’s Final Reset Inside the shocking plot to re-engineer America’s financial system…and why you need to move your money now.May 4, 2025 | Porter & Company (Ad)Banco BBVA Argentina S.A. (NYSE:BBAR) Q4 2024 Earnings Call TranscriptMarch 10, 2025 | msn.comBanco BBVA Argentina S.A. (BBAR) Q4 2024 Earnings Call TranscriptMarch 6, 2025 | seekingalpha.comBanco BBVA Argentina S.A. 2024 Q4 - Results - Earnings Call PresentationMarch 6, 2025 | seekingalpha.comSee More Banco BBVA Argentina Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Banco BBVA Argentina? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Banco BBVA Argentina and other key companies, straight to your email. Email Address About Banco BBVA ArgentinaBanco BBVA Argentina (NYSE:BBAR) provides various banking products and services to individuals and companies in Argentina. The company provides retail banking products and services, such as checking and savings accounts, time deposits, credit cards financing, consumer and pledge 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. It 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. 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.View Banco BBVA Argentina ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Amazon Earnings: 2 Reasons to Love It, 1 Reason to Be CautiousMeta Takes A Bow With Q1 Earnings - Watch For Tariff Impact in Q2Palantir Earnings: 1 Bullish Signal and 1 Area of ConcernVisa Q2 Earnings Top Forecasts, Adds $30B Buyback PlanMicrosoft Crushes Earnings, What’s Next for MSFT Stock?Qualcomm's Earnings: 2 Reasons to Buy, 1 to Stay AwayAMD Stock Signals Strong Buy Ahead of Earnings Upcoming Earnings Palantir Technologies (5/5/2025)Vertex Pharmaceuticals (5/5/2025)Realty Income (5/5/2025)Williams Companies (5/5/2025)CRH (5/5/2025)Advanced Micro Devices (5/6/2025)American Electric Power (5/6/2025)Constellation Energy (5/6/2025)Marriott International (5/6/2025)Energy Transfer (5/6/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 5 speakers on the call. Operator00:00:00Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to BBVA Argentina's 4th Quarter and Fiscal Year 2023 Results Conference Call. We would like to inform you that this event is being recorded and all participants will be in listen only mode during the company's presentation. After the company's prepared remarks are completed, there will be a question and answer section. At that time, further instructions will be given. Operator00:00:40First of all, let me point out that some of the statements made during this conference call may be forward looking statements within the meaning of the Safe Harbor provisions found in Section 27A of the Securities Act of 1933 under U. S. Federal Securities Law. These forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward looking statements. Additionally, information concerning these factors is contained in BBVA Argentina's Annual Report on Form 20F for the fiscal year 2022 filed with the U. Operator00:01:25S. Securities and Exchange Commission. Today with us, we have Ms. Carmen Morella Arellio, CFO Ms. Ines La Nuce, IRO and Ms. Operator00:01:39Belen Forcada, Investor Relations. Ms. Forcada, you may begin your conference. Speaker 100:01:48Good morning, and welcome to VVA Argentina's 4th Quarter and Fiscal Year 2023 Results Conference Call. Today's webinar will be supported by a slide presentation available on our Investor Relations website on the Financial Information section. Speaking during today's call will be Ines La Nuce, our Investor Relations Officer and Thanhmo Moricio Rocho, our Chief Financial Officer, who will be available for the Q and A session. Please note that starting January 1, 2020, as per Central Bank Regulation, we have begun reporting results applying hyperinflation accounting pursuant to IFRS rule IAS 29. For a result of comparability, 20222023 figures have been restated to reflect the accumulated effect of inflation adjustment for each period through December 31, 2023. Speaker 100:02:41Now let me turn the call over to Ines. Speaker 200:02:44Thank you, Helene, and thank you all for joining us today. 2023 ends with a new elected governing party, which has announced an adjustment plan to start correcting the strong macroeconomic distortions, which among others include a significant reduction of fiscal deficit and the depreciation of the local currency to ease FX restrictions. In a context where uncertainty remains high, BBVA Research estimates an annual inflation near 175% by the end of 2024 and expect GDP to fall 4% this year as of the date of this report. It is expected that the most intense recession and inflationary acceleration should happen in the 1st semester, while expectations improve for the 2nd part of the year. In spite of its impact in the short term and high associated risks, these adjustments could state the basis for a sustained reduction in inflation and a recovery in a potential growth for the economy from the second half of twenty twenty four onwards. Speaker 200:03:49Now moving into business dynamics. As you can see on Slide 3 of our webcast presentation, our service offering has evolved in such a way that by the end of December 2023, retail digital clients penetration reached 62%, while retail mobile clients reached 57%. The response on the side of the customers has been satisfactory and we are convinced this is a path to pursue in the aim of sustaining and expanding our competitive position in the financial system. Retail digital sales measured in units reached 93.2% in the Q4 of 2023 and represent 69.8% of the bank's total sales measured in monetary value. New customers acquisition through digital channels reached 75% in the Q4 of 2023 from 72% in the Q4 of 2022. Speaker 200:04:48The bank actively monitors its business, financial conditions and operating results in the aim of keeping a competitive position to face contextual challenges. Moving to Slide 4, I will now comment on the bank's Q4 2023 and fiscal year 2023 financial results. PBA Argentina's inflation adjusted net income in the Q4 of 2023 was ARS48.6 billion, 220.8 percent higher than the net income in the Q3 of 2023. This implied a quarterly ROE of 15.3% at a quarterly ROA of 3.2%. EBITDA Argentina's inflation adjusted net income for the 12 months of 2023 totaled ARS 164.9 billion, 8.6 percent lower than the 12 months of 2022. Speaker 200:05:47In 2023, PBA's Argentina posted an inflation adjusted ROA of 2.7% and an inflation adjusted ROE of 13%. Operating income in the Q4 of 2023 was ARS 400 and 77,900,000,000, 86.4 percent higher than in the Q3 of 2023, while in the year the accumulated operating income reached ARS1.19 trillion, 86.4 percent above the one recorded in 2022. Quarterly operating results are mainly explained by 1, better foreign exchange income, especially due to a greater position in dual national treasury bonds 2, better net interest income results 3, better net income from write down of asset at amortized cost and at fair value through OCI, mainly due to the sale of inflation linked funds and for lower administrative expenses. Net income for the period was highly impacted by income from net monetary position as inflation in the Q3 of 2023 was lower than the Q4 of 2023, reaching 53.9% in the Q4 of 2023 compared to 34.8% in the Q3 of 2023. On an annual basis, the 86 0.4% increment in real terms of the bank's operating income is mainly explained by an increase in interest income, mostly due to an increase in the position and yield of Central Bank Instruments and share bonds as well as interest from loans. Speaker 200:07:31In 2023, what also stands out is the increase in the foreign exchange income due to the higher position in dollar as assets and net income from write down of asset at fair value of the OCI, mainly due to the sale of corporate bonds in the Q3 of 2023 and the exercise of a put option on inflation linked bonds in the Q4 of 2023. Another factor to consider in the annual comparison is the income tax line, which represented only MXN 1 200,000 loss in 2022, explained by the implication of fiscal inflation adjustment in the determination of payable taxes and tax deferral. Last but not least, net income in 2023 is affected by income from net monetary position in a context of higher inflation, which reached 211.4% in 2023 versus 94.8% in 2022. Turning into the P and L lines, in Slide 5, 6 and 7, net interest income for the Q4 of 2023 was ARS495.7 million, increasing 19.7% quarter over quarter. In the Q4 of 2023, interest income in monetary terms decreased more than interest expenses, mainly due to lower income from government securities. Speaker 200:09:02In the Q4 of 2023, the decrease in interest income is mainly driven by the fall in income from government securities, especially in LILIC, which issuance was terminated by the Central Bank in December 2023, reducing its volume on year end. This was partially offset by better income from repo premiums and more income from inflation linked bonds and lifts. Interest expenses totaled ARS383.9 billion, denoting a 20.9% decrease quarter over quarter. Quarterly decline is described by lower time deposits and checking account expenses, in particularly interest bearing checking accounts. Interest from time deposits, including investment accounts, explained 71.2% of interest expenses versus 70.5% in the previous quarter. Speaker 200:09:57Net fee income as of the Q4 of 2023 totaled ARS 35,600,000,000, increasing 36.9%. In the Q4 of 2023, fee income totaled MXN 70,700,000, increasing 18.8 percent quarter over quarter. The quarterly increase is mainly explained by a 41.9% growth in fee from credit cards due to a lower expenses related to Punta Parejo loyalty program and higher activity combined with an increase in prices. Regarding fee expenses, these totaled ARS 35,200,000,000, increasing 4.7% quarter over quarter. Greater expenses are explained by fees paid in foreign exchange related to royalties affected by the devaluation of the local currency and payroll marketing campaigns. Speaker 200:10:53In the Q4 2023, loan loss allowances increased 74.9%. The increase is explained by the accounting re expression of loan loss allowances in the foreign currency portfolio. During Q4 2023, total operating expenses were ARS 211,700,000, increasing 0.6 percent quarter over quarter, of which 32% were personal benefit costs. Personal benefits increased 2.6% quarter over quarter. The quarterly change is mainly explained by the inflation adjustment of vacation stock provisions and variable compensations. Speaker 200:11:36This adjustment is applied retroactively to the last 12 months. As of the Q4 of 2023, administrative expenses fell 29.5% quarter over quarter. These were explained by an increase in the amount of services contracted with the parent company, offset by the update of the provision of these expenses in line with the FX rate depreciation estimated at the quarter end. Being this said, the quarterly efficiency ratio as of the Q4 of 2023 was 46.4%, improving compared to the 82.4% reported in the Q3 of 2023. The quarterly decrease is explained by a decrease in expenses and an increase in net income, especially due to an increase in results from income from foreign exchange as well as income from write down of assets at amortize cost and OCI. Speaker 200:12:35The accumulated efficiency ratio as of the Q4 of 2023 was 58.6%, improving compared to the 63.8% reported in the Q3 of 2023. The improvement in this ratio is due to a lower increase in expenses versus net income. This positive variation in the ratio is also due mainly to better income from write down of assets and more so that cost and OCI and income from foreign exchange. In terms of activity on Slide 8, Private Sector loans as of the Q4 of 2023 totaled ARS 2,000,000,000,000, decreasing 5.7 percent quarter over quarter and 12.3% year over year. Loans to the private sector in pesos fell 9% in the Q4 of 2023. Speaker 200:13:27During the quarter, the decrease was especially driven by a general decline in loans. The decrease was partially offset by a 1.6% increase in overdrafts driven by greater activity. Loans to the private sector denominated in foreign currency increased 41.1 percent quarter over quarter. Quarterly increase is mainly explained by a 54.7% growth in financial and pre financing of exports. Loans to the private sector and foreign currency measured in U. Speaker 200:14:00S. Dollars, decreased 6.1% quarter over quarter. During the quarter, the retail portfolio fell 11.7% and the commercial portfolio increased 0.9%. As observed in the previous quarters, loans portfolio were impacted by the effect of inflation during the Q4 of 2023, which reached 53.3%. In nominal terms, BBA Argentina managed to increase the retail, commercial and total loan portfolio by 35.3%, 54.7% and 45.2%, respectively, only surpassing quarterly inflation levels in the case of commercial loans. Speaker 200:14:45BBA Argentina's consolidated market share of private sector loans reached 9.85% as of the Q4 of 2023, improving from 9.10% annual year ago. As of the Q4 of 2023, asset quality ratio keeps a very good performance at 1.29 percent in line with the good behavior of both retail and commercial portfolios. The lower decrease of the total loan portfolio versus that of the non performing portfolio is explained by a growth in commercial loans driven by a devaluation of the FX rate without significantly affecting client credit behavior. On the funding side, as seen on Slide 9, private non financial sector deposits in the Q4 of 2023 totaled ARS3.1 trillion, decreasing 8.6 percent quarter over quarter. The bank's consolidated market share of private deposits reached 6.79% as of the Q4 of 2023. Speaker 200:15:50Private non financial sector deposits in pesos decreased 26.1% compared to the Q3 of 2020P. The quarterly change is mainly fall in checking accounts, the later driven by the bank's strategy of reducing interest bearing checking accounts. Private non financial sector deposits in foreign currency expressed in pesos increased 63.4% quarter over quarter. This is mainly explained by seasonal factors. In terms of capitalization, BBA Argentina continues to show strong solvency indicators on the Q4 of 2023. Speaker 200:16:38Capital ratio reached 32.8%. Growth in the ratio was mainly driven by an increase in capital, mainly due to better OCI results in the Q4 of 2023. Exposure to the public sector in the Q4 of 2023, excluding Central Bank instruments, represented 15.9% of total assets, above the 12.7% in the Q3 of 2023 and below the 22.4% reported by the system as of December 2023. The bank's total liquidity ratio remained healthy at 91.2 percent of total deposits as of December 31, 2023. This concludes our prepared remarks. Speaker 200:17:23We will now take your questions. Operator, please open the line for questions. Operator00:17:28We will now begin the question and answer Our first question comes from Walter Treverzio with Santander. Please go ahead. Speaker 300:17:57Hi, good morning. Thank you for taking my question. I would like to understand what you are envisioning or the dynamics in the next 12 months are probably beyond that. Speaker 100:18:16Still a Speaker 300:18:17large part of the profitability of the banks in Argentina come from this position to exposure to the public sector, particularly treasury bonds now. But if the economic plan is successful, probably we will see low inflation rates towards 2nd part of the year, and banks will start to shift their portfolio from the public sector to the private sector lending. How do you envision that? How do you think that or what is your strategy? What is the role of the Central Bank with this put that you have to sell the bonds to the Central Bank in order to shift the portfolio to the private sector loans? Speaker 300:19:03What is the dynamic that you've ambitious for the rest of the year? Thank you. Speaker 400:19:09Hi, Walter. How are you doing? Okay. Let me start by the first part of your question. I would highlight from the results we presented for 2023 that despite the scenario you have been describing, high inflation around 211 and still being high although a little bit smaller for lower for 2024. Speaker 400:19:34We're projecting 175 inflation year end. With what happened with the monetary policy rate that went up and then went down with the devaluation. And as you mentioned, with banks mainly lending acquiring bonds because of the lack of demand, BBVA in particular has been able to keep lending and increasing our market share. Our market share during 2023 increased 75 basis points. And that is something that I would like to highlight because we believe that what the bank needs to do is despite the context, keep lending. Speaker 400:20:18Going forward, we still see or we still project a contraction in real terms of the loan growth. For the system, we are projecting a 24% decrease in real terms, but the bank should be decreasing less, around 11%. So we still are aiming to keep increasing our market share and also in parallel increase our active players that as you've seen in our presentation has increased 10% from the figures of last year. So moving forward, we believe there are still a lot of moving parts to be able to define when this pickup in lending will start. But the bank is committed to keep lending and increasing market share and start switching our positions in bonds and Central Bank instruments that we have in our assets by loans. Speaker 400:21:24That is the commitment and where we are aiming for the next years. But we need the macroeconomic scenario to start Speaker 300:21:32changing. Okay, perfect. Thank you very much, Ines. Operator00:21:46This concludes our question and answer session. At this time, I would like to turn the floor back to Ms. Linoosa for any closing remarks. Speaker 400:21:56Okay. Thank you very much for your time, and let us know if you have further questions. Have a good day. Operator00:22:03Thank you. This concludes today's presentation. You may now disconnect your line at this time and have a nice day.Read morePowered by