BBVA Banco Frances NYSE: BBAR management said the bank continued to execute on a growth strategy during 2025 despite a volatile macro backdrop, pointing to market share gains in loans and deposits, improving fourth-quarter profitability, and asset quality metrics that remained better than the Argentine system average.
Macro backdrop and strategic developments
Investor Relations Manager Belén Fourcade said financial conditions normalized after third-quarter political instability and the midterm legislative elections, which “reaffirmed support for the government's fiscal reform and order policy.” Even so, she described 2025 as a year marked by interest rate volatility in the second half and a “progressive deterioration of credit quality within specific segments of the retail portfolio.”
The bank highlighted several strategic items during the call:
- On December 22, 2025, BBVA Argentina secured a credit line of up to $150 million from the International Finance Corporation, which management said will support expanded financing for small and medium-sized enterprises.
- On December 10, 2025, BBVA Argentina closed the acquisition of 50% of FCA Compañía Financiera. Fourcade said the transaction had an ARS 1 billion impact on the profit and loss statement, and balance sheet figures include FCA as of the last day of December, though market share figures discussed on the call do not include FCA due to timing of consolidation.
2025 profitability: lower year over year, stronger in the fourth quarter
Management reported inflation-adjusted net income of ARS 267.4 billion for 2025, down 43.2% versus 2024, with an accumulated return on equity (ROE) of 7.3% and return on assets (ROA) of 1.1%. Fourcade attributed the year-over-year decline mainly to a sharp deterioration in loan loss allowances amid higher delinquency across the financial system.
Net interest income (NII) fell 29.4% year over year, which management linked to lower interest rates and inflation. However, the bank emphasized that this decline should be viewed alongside “lower losses from the net monetary position,” which more than offset lower NII. The bank also cited a 36.9% increase in net fee income and an increase in foreign currency and gold gains, which management said reflected higher activity after the partial lifting of FX controls on April 14, 2025.
Fourth-quarter net income was ARS 59.3 billion, up 44.5% quarter over quarter, with quarterly ROE of 6.5% and ROA of 0.9%. Fourcade said the quarterly improvement was driven by higher income and lower expenses. NII increased in the quarter, and the bank also benefited from higher results from write-downs of assets at amortized cost and other comprehensive income (OCI), which management said was related to sales of bonds classified in the OCI model.
Credit costs and asset quality: retail pressure, expectations for a 1Q peak
Loan loss allowances rose 31.3% quarter over quarter and 181.2% year over year, which management linked to deterioration in non-performing loans (NPLs), “in particular on the retail book,” driving higher provisioning. Cost of risk reached 8.11% in the fourth quarter and 5.54% for the full year.
BBVA Argentina’s NPL ratio on private loans was 4.18% as of December 2025, which management noted remained below the system average of 5.29% for the same period.
In the Q&A, CFO Carmen Murillo told analysts she expects the first quarter to remain “a tough one” and said the peak should occur in the first quarter for both NPLs and cost of risk, with credit indicators trending downward afterward. Diego Cesarini added that the bank expects cost of risk could reach 2024 levels by the end of 2026, while acknowledging it would likely start 2026 near end-2025 levels.
Balance sheet trends: loan and deposit market share gains
Private sector loans totaled ARS 14.8 trillion as of the fourth quarter of 2025, rising 7.6% in real terms quarter over quarter and 47.6% year over year. Management said quarterly growth was mainly driven by peso loans, with notable increases in commercial products such as project and export financing and discounted instruments. In pesos, discounted instruments, pledge loans, and credit cards “stood out,” with pledge loans influenced by the incorporation of FCA. Consumer loans declined 2.2% quarter over quarter, which management linked to currency policy actions amid worsening retail NPLs.
The bank’s consolidated market share of private sector loans reached 11.91% in the fourth quarter, up 64 basis points from 11.27% a year earlier. Management also pointed to a loans-and-other-financing over deposits ratio of 88% at year-end 2025, up from 78% in December 2024, and said total loans represented 57% of assets, the highest level since 2020.
On margin, total net interest margin (NIM) was 17.5% in the fourth quarter, higher than 15.2% in the third quarter but below 20.2% in the fourth quarter of 2024. Management said peso NIM rose 277 basis points quarter over quarter to 20.2%, while dollar NIM fell 91 basis points to 4.8% due to a higher volume and rate of interest-bearing liabilities.
Total private deposits were ARS 16.7 trillion, up 3.1% quarter over quarter and 29.7% year over year. Consolidated market share of private deposits reached 10.04% from 8.60% a year ago. Private non-financial sector peso deposits declined 1.4% quarter over quarter, reflecting lower time deposits and other deposits, partly offset by higher savings accounts. Foreign-currency deposits (expressed in pesos) increased 11.6% quarter over quarter, driven by higher savings and time deposits.
In the Q&A, Cesarini said BBVA’s deposit growth substantially outpaced the system in 2025, attributing momentum to a recovery in retail term deposits, a renewed push in SME and corporate deposits, and a return to competing for wholesale institutional funding. He said the bank expects deposits to grow above the system but below loan growth as it expands, and agreed that a 15% to 20% real growth range for deposits could be consistent with 25% to 30% real loan growth.
Capital, liquidity, dividends, and 2026 assumptions
BBVA Argentina reported a capital ratio of 18.3% in the fourth quarter, with management attributing the quarterly increase to a 9.4% rise in Common Equity Tier 1, “mainly impacted by the recovery in the value of government bonds at fair value through OCI.” Liquidity ratio was 44.2%, with local and foreign currency liquidity ratios of 37.7% and 55.2%, respectively.
Murillo said the bank continued paying dividends tied to fiscal year 2024 in 10 installments and had paid nine of the 10 installments required by regulation at the time of the call. When asked about fiscal 2025 dividends, Murillo said the bank did not yet know the payment mechanics and expected to have more information by March. She said management prefers a lower payout ratio to support growth and indicated the approach would be similar to the prior year, when the payout was about 25% of 2024 net income. Management also noted that under current FX regulations, the bank could, in theory, access the official FX market to pay dividends this year.
On inflation accounting, management said earlier expectations had pointed to the end of 2027, but updated projections suggest 2028 is a more prudent estimate for exiting inflation adjustment accounting.
For 2026 assumptions, Murillo said the bank’s research department is expecting 22% inflation and 3% GDP growth. Management also said it expects dollar loans to grow somewhat faster than peso loans, with dollar lending currently around 23% of the book and potentially rising to 25% to 27%.
Looking to 2026, Murillo maintained guidance for loan growth of 25% to 30% in real terms, saying it was too early to change that outlook, and reiterated expectations for improving profitability versus 2025. Management also pointed to continued efficiency efforts, with Murillo citing an efficiency ratio target of around 46%.
About BBVA Banco Frances NYSE: BBAR
BBVA Banco Francés is one of Argentina's leading financial institutions, operating as a subsidiary of the global banking group BBVA. The bank provides a full range of retail and commercial banking services to individuals, small and medium‐sized enterprises, large corporations and institutional clients. Its product suite spans deposit accounts, mortgages, personal and auto loans, credit and debit cards, transactional banking and digital solutions designed to meet the evolving needs of customers in both urban and regional markets.
Founded in Buenos Aires in the late 19th century, Banco Francés has developed a longstanding presence in Argentina's financial sector.
Further Reading
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider BBVA Banco Frances, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and BBVA Banco Frances wasn't on the list.
While BBVA Banco Frances currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Click the link to see MarketBeat's list of seven stocks and why their long-term outlooks are very promising.
Get This Free Report
