3q19 bbva argentina corporate presentation · corporate presentation 3q 2019 1 safe harbour...

BBVA Argentina3Q 2019 Corporate Presentation

December 2019

1Corporate Presentation 3Q 2019

Safe Harbour Statement

This presentation contains certain forward-looking statements that reflect the current views and/or expectations of Banco BBVA Argentina and itsmanagement with respect to its performance, business and future events. We use words such as “believe,” “anticipate,” “plan,” “expect,” “intend,”“target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “seek,” “future,” “should” and other similar expressions to identify forward-looking statements, but they are not the only way we identify such statements. Such statements are subject to a number of risks, uncertainties andassumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives,expectations, estimates and intentions expressed in this release. Actual results, performance or events may differ materially from those in suchstatements due to, without limitation, (i) changes in general economic, financial, business, political, legal, social or other conditions in Argentina orelsewhere in Latin America or changes in either developed or emerging markets, (ii) changes in regional, national and international business andeconomic conditions, including inflation, (iii) changes in interest rates and the cost of deposits, which may, among other things, affect margins, (iv)unanticipated increases in financing or other costs or the inability to obtain additional debt or equity financing on attractive terms, which may limitour ability to fund existing operations and to finance new activities, (v) changes in government regulation, including tax and banking regulations, (vi)changes in the policies of Argentine authorities, (vii) adverse legal or regulatory disputes or proceedings, (viii) competition in banking and financialservices, (ix) changes in the financial condition, creditworthiness or solvency of the customers, debtors or counterparties of Banco BBVAArgentina, (x) increase in the allowances for loan losses, (xi) technological changes or an inability to implement new technologies, (xii) changes inconsumer spending and saving habits, (xiii) the ability to implement our business strategy and (xiv) fluctuations in the exchange rate of the Peso.The matters discussed herein may also be affected by risks and uncertainties described from time to time in Banco BBVA Argentina’s filings withthe U.S. Securities and Exchange Commission (SEC) and Comision Nacional de Valores (CNV). Readers are cautioned not to place undue relianceon forward-looking statements, which speak only as the date of this document. Banco BBVA Argentina is under no obligation and expresslydisclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events orotherwise.


Employees

6,242

branches

251

AR$1.6 bn

Commissions

3.31%

NPL ratio

105.08%Coverage ratio

AR$414.1 bn

Total assets

AR$211.8 bn

Loans to the private sector

AR$274.5 bn

TotalDeposits

TOTAL CUSTOMERSSEPTEMBER 2019

PRV3

56.9%

RETAIL

+2.6 m

1. Digital Customers: We consider a customer to be an active user of online banking when they have been logged at least once within the last three months using the internet or a cell phone and SMS banking

2. Mobile Customers: Customers who have been active in online banking at least once in the last three months using a mobile device

3. PRV: Product Relative Value as a proxy of a better economic representation of units sold

*NIM: without FX difference.

ATMs

845

ATSs

857AR$15.6 bn

Interest Results

35.9%Efficiency ratio

AR$11.1 bn

Net Income

AR$7.1 bn

Op. Expenses

11.0%ROA

20.4%NIM*

81.3%ROE

DIGITAL SALES

SMEs CIB

+50,450 +800Digital Customers1

+1.2 mMobile Customers2

+0.9 m

BBVA Argentina 3Q19 highlights

In-company branches

13Customer service booths

2

BBVA Purpose

01


We are BBVA. We create opportunities

SIX STRATEGIC PRIORITIESOUR PURPOSE

To bring the age of

opportunity

to everyone

New standard in customer experience

A first class workforce

Digital sales

Unrivaled efficiency

New business models

Optimize capital allocation


New value proposition

Providing the best solutionsthat generate trust for our customers, being clear, transparent and basedon integrity

Helping our customersto make the best financial decisions offering relevant advice

Through an easy and convenient experienceDIY through digital channels or human interaction

Based on our customers’ real needs

Our aspiration is to strengthen the relationship with the customer


Our Values

Customer comes first We think big We are one team

We are empathetic

We have integrity

We meet their needs

We are ambitious

We break the mold

We amaze our customers

I trust others

I am BBVA

I am committed

BBVA Argentina

02


3Q19 Highlights

01 Net Income

02 Net Interest Income

05 Risk indicators

06 Strong capital position

07 Focus on shareholder value

AR$ 15.6bn +129.2% YoY

NPL ratio3.31%

Capital Ratio 17.1%

TIER I16.4%

AR$ 11.1bn +264.6% YoY

03 Net Fee Income

Coverage ratio105.08%

ROE

81.3%

AR$ 1.6bn (11.0%) YoY

ROA11.0%

04 Administrative + Personnel Expenses AR$ 7.1bn +64.1% YoY


A leading bank…

Source: “Información de entidades financieras”, BCRA, as of September 2019

1,234602 557 526 402 383 253 225 215 211

1,700

6,308

19.6%9.5% 8.8% 8.3%

6.4% 6.1%4.0% 3.6% 3.4% 3.3%

27.0%

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Assets (AR$ bn - % Market Share)

12177 70 57 56 52 29 26 26 25

249

787

15.4%

9.7% 8.9% 7.3% 7.1% 6.6%3.7% 3.3% 3.2% 3.1%

31.6%

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Equity (AR$ bn - % Market Share)

Public Banks Private Banks

27.4 28.1 21.4 14.8 12.4 7.2 6.4 8.4 9.1 4.6

47.4

187.2

14.6%15.0%

11.4%7.9% 6.6% 3.8% 3.4% 4.5% 4.9% 2.5%

25.3%

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Earnings (AR$ bn - % Market Share)

1,113

500 532 474 346 306 232 201 186 185

1,444

5,520

20.2%

9.1% 9.6% 8.6%6.3% 5.5%

4.2% 3.6% 3.4% 3.4%

26.2%

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Liabilities (AR$ bn - % Market Share)


378241 231 213 182 164 97 97 89 75

597

2,363

16.0%

10.2% 9.8% 9.0%7.7% 6.9%

4.1% 4.1% 3.7% 3.2%

25.2%7.9%*

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Total Loans (AR$ bn - % Market Share)

1,031

429 429 383 275 241 191 172 172 130

1,102

4,555

22.6%9.4% 9.4% 8.4% 6.0% 5.3% 4.2% 3.8% 3.8% 2.8%

24.2%

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Total Deposits (AR$ bn - % Market Share)

*Includes PSA + Volkswagen + Rombo.Source: “Información de entidades financieras”, BCRA, as of September 2019

Public Banks Private Banks

…in the Argentine financial system,…

7.7%*


… with a diversified business model.

MULTICHANNEL STRUCTURE

BRANCHES

ATM/ATS

CALL CENTER

IN-COMPANY BANKS

JV’S ALLIANCES

Physical

Infrastructure

Digital

Channels

Exclusive

Partnerships

WEB

MOBILE


33%

34%

10%

4%

6%

7%

7%

CABA

Prov Bs. As

Litoral

NOA

Cuyo

Centro

Patagonia

BBVA BMASUPV GAL

23%

39%

2%

1%

28%

6%

1%

CABA

Prov Bs. As

Litoral

NOA

Cuyo

Centro

Patagonia

32%

38%

10%

3%

5%

6%

6%

CABA

Prov Bs. As

Litoral

NOA

Cuyo

Centro

Patagonia

7%

16%

36%

15%

4%

17%

5%

CABA

Prov Bs. As

Litoral

NOA

Cuyo

Centro

Patagonia

251+0

179+0

325+13

425-14

Geographic distribution of branches as of September 2019

*Annual variation in number of branches.Source: “Información de entidades financieras”, BCRA, as of September 2019

Total:YoY Chg*:


and a growth strategy focused on two key goals

Digitalization

Servicing

Differentiated commercial offering

Digital acquisition engines

Development of key digital competences

OPEN MARKETTRANSFORMATION


Equity Ownership

OWNERSHIP STRUCTURE

ANSES6.9%

ByMA*6.2%

NYSE20.3%

66,55%

Free Float26,55%

SUBSIDIARIES AND EQUITY PARTICIPATIONS

BBVA Asset Management95%

BBVA Francés Valores**97%

PSA Finance*50%

Volkswagen Financial Services* 51%

Rombo Compañía Financiera*40%

BBVA Seguros12.22%

As of September 30th, 2019*Includes 0.07% in LATIBEX

*As of July 1st 2019 the Bank returns to report the activity of PSA, Rombo and VWFS on a consolidated basis with BBVA Argentina.**As of October 1st, 2019, the merger between BBVA Argentina S.A. And BBVA Francés Valores S.A. was put into effect (merger by absorption process)


4.1%

6.6%

11.0%

3Q18 2Q19 3Q19

3.0

6.8

11.1 10.7

3Q18 2Q19 3Q19

Net Income & Main Quarterly Ratios

ROE (%)

ROA (%)

NET INCOME(AR$ billions)

35.2%

58.4%

81.3%

3Q18 2Q19 3Q19

EFFICIENCY (%)

44.8%

34.2% 35.9%

3Q18 2Q19 3Q19

+265%

Pro-forma results .Excludes consolidation with PSA, Rombo and VWFS as of July 1st 2019.


78% 79% 76%

4%13%

7%

19%8%

17%

3Q18 2Q19 3Q19

FX difference

Net income/loss from measurement of financial instruments at fair value

Net Interest Income

Net Interest Margin

NIMW/ FX difference

NET INTEREST MARGIN(AR$ billions)

NIMW/o FX difference

12.3%

20.0% 20.4%

15.6%

23.1% 25.6%

+133%

20.416.58.7


17%

37% 36%

40%

21% 28%

31% 28%27%

9% 11% 8%

-20%-8% -4%

-66%-79%

-77%

-14% -12%-19%

4% 3% 2%

-100%

-50%

0%

50%

100%

3Q18 2Q19 3Q19

Net Interest Income

6.8 13.0 15.6

NET INTEREST INCOME(AR$ billions)

Interest Income

From Private and Public Securities

Financial Sector

Retail

Commercial

Other Interest Income

Interest Expense

Sight Deposits

Time Deposits

Other Interest Expense


Fees & Expenses

NET FEE INCOME(AR$ billions)

3.74.4 4.7

-2.0 -2.4

-3.1

1.8 1.91.6

3Q18 2Q19 3Q19

Fee Income Fee Expenses Net Fee Income

ADMINISTRATIVE EXPENSES(AR$ billions)

+64%-11%

2.53.2 3.6

1.8

2.4

3.5

3Q18 2Q19 3Q19

Personnel Expenses Administrative Expenses


Solid Balance Sheet Structure

Leverage 7.1xTotal Loans/Total Deposits 75% Liquid Assets/Deposits 62%

18%28% 23% 23%

13%

12% 21% 18%

60%51% 47% 50%

9% 8% 8% 9%

213 355 393 414

2017 2018 2Q19 3Q19

Cash Government & Private Securities Loans Other Assets

ASSETS(AR$ billions)

LIABILITIES & EQUITY(AR$ billions)

72%73% 73%

66%

1%

1%2%

4%

13%25%

26%34%

14% 18% 23% 27%

213 355 393 414

2017 2018 2Q19 3Q19

Deposits Corporate Bonds Other Liabilities Equity


Public + Financial1.3%

Corporate23.9%

SMEs24.3%

Retail*50.4%

Loans

+18%

NET PRIVATE LOANS STRUCTURE

AR$71%

USD29%

Personal Loans22.4%

Mortgages12.0%

Car Loans15.5%

TOTAL LOAN PORTFOLIO(AR$ billions)

182.6

192.4

214.6

201.6

3Q18 2Q19 3Q19

PRIVATE SECTOR LOANS MARKET SHARE %*

3Q19 2Q19 3Q18

Bank 7.34% 7.64% 7.34%

Consolidated 8.13% 8.51% 8.28%


*Based on daily information from BCRA. Capital values as of last day of every quarter.

AR$ 207,172 bn

*Corporate credit cards included

PRIVATE LOANS BY CURRENCY


Loans by segment

Overdrafts13%

Documents6%

Mortgage15%

Pledge7%

Personal25%

Credit Card29%

Other Loans4%

FINANCIAL SYSTEM* (%)

Mortgage12%

Pledge16%

Personal22%

Credit Card50%

RETAIL

Overdrafts17%

Documents21%

Other Loans62%

COMMERCIAL

Overdrafts8%

Documents10%

Mortgage6%

Pledge8%

Personal11%

Credit Card25%

Other Loans30%

*Source: “Información de entidades financieras”, BCRA, as of September 2019

BBVA (%)


Retail loan portfolio

PERSONAL LOANS(AR$ billions)

5.02% 5.22% 5.16%

PERSONAL LOANS MARKET SHARE*

21.9

24.4

23.8

3Q18 2Q19 3Q19


+8.7%

CREDIT CARDS(AR$ billions)

13.57% 15.15% 14.93%

*Credit cards: Consumption market share. Based on information provided by Visa andMastercard administrators. Spending is considered as of the end of the last month of thequarter.

CREDIT CARD CONSUPTION MARKET SHARE*

37.4

47.853.4

1,991 2,107 2,150

3Q18 2Q19 3Q19

Volume (billions) Credit card stock (million cards)

+43%


Retail loan portfolio

MORTGAGES(AR$ billions)

3.35% 3.35% 3.25%

8.7

12.012.8

3Q18 2Q19 3Q19

+47%

MORTGAGE LOANS MARKET SHARE


PLEDGE LOANS(AR$ billions)

16.51% 15.14% 13.01%

**Consolidated market share. Based on daily information from BCRA. Capital values as of last day of every quarter.

+830%

1.8 1.5

16.5

1.5

3Q18 2Q19 3Q19


PLEDGE LOANS MARKET SHARE**


Commercial banking loan portfolio

+2.8%

AR$34%

USD66%

COMMERCIAL LOANS BY CURRENCY (%)

9.01% 9.10% 8.31%

COMMERCIAL LOANS MARKET SHARE*

COMMERCIAL LOANS (Overdrafts+Documents+Other, AR$ billions)

100.5

96.9

103.3

3Q18 2Q19 3Q19



Risk Indicators

Retail 2.87% SMEs 6.63% CIB 0.91%

NPL BY SEGMENT (%)

NPL & COVERAGE (%)

220.6%

112.9% 105.1%

1.0%

2.7%

3.3%

3Q18 2Q19 3Q19

Coverage NPL

NPL PEER GROUP & FINANCIAL SYSTEM (%)

4.6%

3.3%

1.8%

3.5%

4.0%

System

BBAR

BMA

GGAL

SAN

Source: “Información de Entidades Financieras”, BCRA, as of September 2019


Asset Quality

NPLs AS A % OF TOTAL LENDING

ALLOWANCES AS A % OF NPLs

0.8%1.3%

1.9%2.7%

3.3%

1.8% 1.8%

3.1%

4.5% 4.8%

1.6% 1.8%

3.1%4.3% 4.4%

2016 2017 2018 2Q19 3Q19

263% 262%

119% 113% 105%140% 151%

121%93% 93%

145% 132%106% 107% 111%

2016 2017 2018 2Q19 3Q19

BBVA System Private BanksSource: “Informe sobre bancos”, BCRA, as of September 2019


26% 28.6%

48.3%

36%

8.5%

1.4%

2%39.4%

50.2%36%

23.2%

3Q18 2Q19 3Q19

Public Debt in pesos Public Debt in US dollars

Public Debt in pesos, US dollar-Linked Repo

93%

100%

89%

6%11%

1%

3Q18 2Q19 3Q19

LEBAC

Repo

LELIQ

Public Sector Exposure excluding BCRA risk

Source: “Informe sobre bancos”, BCRA, as of September 2019

BBVA PUBLIC SECTOR EXPOSURE

Provinces and Public Sector loans amount for 0.1% in 3Q19

BBVA BCRA EXPOSURE

3.5%

5.4%

6.7%

6.1%

4.3%

8.9%8.4%

10.4%

9.4%9.7%

2016 2017 2018 2Q19 3Q19

BBVA Financial System*

BBVA VS SYSTEM PUBLIC SECTOR EXPOSURE

22,602 24,043 17,940

18,643 57,005 60,340


Deposits

AR$56%

USD44%

TOTAL DEPOSITS(AR$ billions)

DEPOSITS STRUCTURE

Current accounts15.6%

Savings accounts

50.6%

Time deposits

31.9%

Others1.9%

8.42% 7.35% 7.14%

PRIVATE DEPOSITS MARKET SHARE*

247.2

285.2

274.5

3Q18 2Q19 3Q19

+11%


DEPOSITS BY CURRENCY


Liquid assets

TOTAL LIQUID ASSETS(%)

52% 61% 62%

TOTAL LIQUID ASSETS/TOTAL DEPOSITS

29% 33% 32%

10%11% 16%

59%54% 51%

2% 2% 2%

3Q18 2Q19 3Q19

Time deposits Checking accounts Savings accounts Other

DEPOSIT BASE(%)

LOW COST OF FUNDING

68%

68%

53% 56%

11%

11% 9%

14%33% 32%

7% 3% 4%

3Q18 2Q19 3Q19

Cash and deposits in banks Government securities

Liquidity bills of B. C. R. A. Net REPO transactions


Strong Capital Position

14.1%

16.7% 17.1%

12.9%

16.0%

16.4%

3Q18 2Q19 3Q19

Capital Ratio Tier I

Minimum Capital

Requirement(8%)

Additional buffer(+3,5%)


*Over private sector loansSource: Banks’ Press Releases

BBAR GGAL BMA SUPV

Profitability

ROA 11.0% 7.1% 9.4% 0,7%

ROE 81.3% 58.2% 57.3% 6.2%

Efficiency Ratio 35.9% 37.3% 32.5% 70.4%

Liquidity

Liquid assets/Total Deposits 61.7% 49.0% 61.0% 52.1%

Loans/Total Deposits 75.5% 89.2% 75.0% 95.9%

Capital

Total Regulatory Capital Ratio 17.1% 16.4% 26.5% 12.9%

Ratio TIER 1 16.4% 12.2% 18.9% 11,8%

Asset Quality

NPL* 3.24% 5.25% 2.02% 7.59%

Allowances/NPL 105.08% 106.01% 124.16% 86.10%

BBVA Argentina 3Q19 Highlights vs. Peers


BBVA Argentina P&L BreakdownIncome Statement

In millions $ except EPS and ADS 3Q19 2Q19 3Q18 QoQ YoY

Net Interest Income 15,611 13,036 6,811 19.8% 129.2% 14,849

Net Fee Income 1,564 1,944 1,758 (19.5%) (11.0%) 1,625

Net income/loss from measurement of financial instruments at fair

value

1,432 2,115 323 (32.3%) 343.3% 1,225

Net loss from write-down of assets at amortized cost and at fair

value through OCI

3 (36) 13 108.3% (76.9%) 4

Foreign exchange and gold gains 3,403 1,322 1,624 157.4% 109.5% 3,414

Other operating income 1,123 4,390 1,004 (74.4%) 11.9% 1,131

Loan loss allowances (1,851) (1,865) (1,033) (0.8%) 79.2% (1,822)

Net operating income 21,285 20,906 10,500 1.8% 102.7% 20,426

Personnel benefits (3,649) (3,242) (2,504) 12.6% 45.7% (3,581)

Adminsitrative expenses (3,455) (2,421) (1,826) 42.7% 89.2% (3,364)

Depreciation and amortization (423) (394) (220) 7.4% 92.3% (418)

Other operating expenses (3,218) (6,074) (1,636) (47.0%) 96.7% (2,987)

Operating income 10,540 8,775 4,314 20.1% 144.3% 10,076

Income from associates (7) 312 (135) (102.2%) (94.8%) 323

Net income before income tax 10,533 9,087 4,179 15.9% 152.0% 10,399

Income tax 576 (2,306) (1,132) 125.0% 150.9% 337

Net Income for the period 11,109 6,781 3,047 63.8% 264.6% 10,736

Total Other Comprehensive Income for the period (3,425) 27 (153) n.m n.m (3,420)

Outstanding common shares (in thousands) 612,660 612,660 612,660 - - 612,660

Basic earnings per share 17.5 11.1 4.9 58.3% 256.9% 17.5

Earnings per ADS (1) 52.6 33.2 14.7 58.3% 256.9% 52.6

(1) Each ADS represents three ordinary shares

Proforma (2)

3Q19

(2) Excludes consolidation with PSA, Rombo and VWFS as of July 1st 2019

BBVA ARG consolidated Chg%


BBVA Argentina Balance SheetBalance Sheet

In millions $ 3Q19 2Q19 3Q18 QoQ YoY

Assets

Cash and Deposits in banks 94.168 90.955 87.821 3,5% 7,2% 93.857

Cash 28.259 15.856 18.477 78,2% 52,9% 28.259

Financial institutions and correspondents 65.909 75.099 69.344 (12,2%) (5,0%) 65.598

B.C.R.A 59.163 73.484 62.851 (19,5%) (5,9%) 58.898

Other in the country and abroad 6.746 1.615 6.493 317,7% 3,9% 6.700

Debt securities at fair value through profit or loss 5.169 6.591 475 (21,6%) 988,2% 5.178

Derivatives 2.243 1.838 64 22,0% 3.404,7% 2.124

Repo transactions 6.665 5.924 9.583 12,5% (30,4%) 6.665

Other financial assets 6.457 5.957 6.707 8,4% (3,7%) 6.304

Loans and other financing 207.172 186.616 178.638 11,0% 16,0% 194.381

Non-financial public sector 1 - - n.m n.m 1

B.C.R.A - - - n.m n.m -

Other financial institutions 2.778 7.597 9.634 (63,4%) (71,2%) 7.535

Non-financial private sector and residents abroad 204.393 179.019 169.004 14,2% 20,9% 186.845

Other debt securities 63.440 69.764 30.982 (9,1%) 104,8% 63.440

Financial assets pledged as collateral 8.302 6.352 6.302 30,7% 31,7% 8.301

Current income tax assets - - - n.m n.m -

Investments in equity instruments 1.875 1.915 129 (2,1%) 1.353,5% 1.875

Investments in associates 272 2.075 1.781 (86,9%) (84,7%) 2.396

Property and equipment 11.821 11.867 9.173 (0,4%) 28,9% 11.804

Intangible assets 641 590 596 8,6% 7,6% 640

Deferred income tax assets 3.401 527 101 545,4% 3.267,3% 3.167

Other non-financial assets 2.391 1.861 1.375 28,5% 73,9% 2.075

Non-current assets held for sale 60 60 253 - (76,3%) 60

Total Assets 414.077 392.892 333.980 5,4% 24,0% 402.267

(1) Excludes consolidation with PSA, Rombo and VWFS as of July 1st 2019.

BBVA ARG consolidated Chg% Proforma (1)

3Q19


BBVA Argentina Balance SheetBalance Sheet

In millions $ 3Q19 2Q19 3Q18 QoQ YoY

Liabilities

Deposits 274.487 285.201 247.228 (3,8%) 11,0% 275.015

Non-financial public sector 2.642 3.635 2.030 (27,3%) 30,1% 2.642

Financial sector 314 296 197 6,1% 59,4% 969

Non-financial private sector and residents abroad 271.531 281.270 245.001 (3,5%) 10,8% 271.404

Liabilities at fair value through profit or loss 43 1.156 1.346 (96,3%) (96,8%) 43

Derivatives 4.023 2.289 4.432 75,8% (9,2%) 4.400

Repo transactions - - - n.m n.m -

Other financial liabilities 31.609 23.068 21.934 37,0% 44,1% 30.287

Financing received from the BCRA and other financial institutions 8.481 3.292 5.758 157,6% 47,3% 5.227

Corporate bonds issued 8.728 4.329 1.734 101,6% 403,3% 3.937

Current income tax liabilities 5.240 4.609 2.548 13,7% 105,7% 5.136

Subordinated Corporate bons - - - n.m n.m -

Provisions 7.657 7.050 3.448 8,6% 122,1% 7.495

Deferred income tax liabilities 31 65 47 (52,3%) (34,0%) 31

Other non-financial liabilities 15.233 13.023 9.776 17,0% 55,8% 14.572

Total Liabilities 355.532 344.082 298.251 3,3% 19,2% 346.143

Equity

Share Capital 613 613 613 - - 613

Non-capitalized contributions 6.736 6.736 6.736 - - 6.736

Capital adjustments 313 313 313 - - 313

Reserves 28.488 28.488 17.425 - 63,5% 28.488

Retained earnings - - 4.015 n.m (100,0%) -

Other accumulated comprehensive income (3.582) (162) (79) 2.111,1% 4.434,2% (3.582)

Income of the period 23.527 12.788 6.677 84,0% 252,4% 23.527

Equity attributable to owners of the Parent 56.095 48.776 35.700 15,0% 57,1% 56.095

Equity attributable to non-controlling interests 2.450 34 29 7.105,9% 8.348,3% 29

Total Equity 58.545 48.810 35.729 19,9% 63,9% 56.124

Total Liabilities and Equity 414.077 392.892 333.980 5,4% 24,0% 402.267

(1) Excludes consolidation with PSA, Rombo and VWFS as of July 1st 2019.

BBVA ARG consolidated Chg% Proforma (1)

3Q19


BBVA Argentina Outstanding corporate bond debt

Series Issue DateNominal Amount(thousands AR$)

Maturity CouponCoupon

FrequencyRating

(FixCSR)

Clase 23 12/27/2017 553.125 12/27/2019 Floating +3,20% (TM20) Quarterly AAA(arg)

Clase 24 12/27/2017 546.5 12/27/2020Floating +4,25% (Badlar -Private Banks)

Quarterly AAA(arg)

Clase 25 11/8/2018 784.334 11/8/2020 Floating + 9,50% (UVA) Quarterly AAA(arg)

Clase 27 2/28/2019 1.090.000 8/28/2020Floating +6,25% (Badlar -Private Banks)

Quarterly AAA(arg)

TM20 rate: it is calculated as the volume weighted average interest rates for deposits equal or over 20 million pesos with a maturity of 30-to-35 days.BADLAR- Private Banks rate : interest rate for fixed term deposits over 1 million pesos with a maturity of 30-to-35 days.UVA rate: unit measure that is daily adjusted to the CER index, according to the consumer price index.

Financial System

03


Adequate systemic levels of liquidity and solvency

Source: “Informe sobre bancos”, BCRA, as of September, 2019

CAPITALCapital/RWA according to BCRA regulation

LIQUIDITYCash + net repos with BCRA+ BCRA bills/Total Deposits

13.3% 16.7% 15.6% 15.8% 16.3% 16.3%

46.7% 49.0% 42.6%56.6% 60.4% 57.6%

NPL

1.7% 1.8% 1.7%3.0% 4.7% 4.8%

2015 2016 2017 2018 2Q19 3Q19

Irregular non-financial private sector portfolio/Financing to the non-financial private sector


Positive nominal and real profitability for private banks

ROE AND INFLATION

Source: BCRA and IPC CABA (from Jan-13 to Apr-16) – IPC GBA INDEC (from May -16 to May -17) – IPC Nacional INDEC (from June -17)

ROE: “Informe sobre bancos” BCRA as of September, 2019

32.4%29.6%

23.4%

36.1%41.1% 42.0%

31.2% 29.4%26.6%

35.6%

58.3%55.6%

26.9%

39.4%

24.8%

47.6%

55.8%53.5%

2015 2016 2017 2018 2Q19 3Q19

System ROE Private Banks ROE Inflation YoY


A small financial system with good infrastructure, prepared for potential growthLATAM PRIVATE LOANS AND TOTAL DEPOSITS(% OF GDP)

13.5

58.9

14.0

49.9

14.9

42.3

7.4

114.7

0

25

50

75

100

125

Branches of Commercial Banksper 100,000 adults

ATM per 100,000 adults

Argentina Chile Colombia Peru

BRANCHES AND ATMs/100,000 ADULT POPULATION

12.4%

18.2%

87.3%

74.4%

45.8%

40.6%36.6%

32.9%

0%

25%

50%

75%

100%

Crédit (%GDP) Deposits (%GDP)

Argentina Chile Colombia Peru

Source: IMF, December 2018


LATAM financial concentration

# OF FINANCIAL INSTITUTIONS PER COUNTRYTOTAL LOANS MARKET SHARE

Source: Central Banks, Bankscope, IMF

63

50

25

19

15

ARG MEX COL CHI PER

7.3%

5.7%

12.9%6.1%

3.7%

7.6%

8.9%

7.4%13.6%

10.1%

12.6%

11.8%

9.9%

9.5%16.0%

12.1%

17.2%

16.8%

11.1%

18.0%

16.9%

15.8%

20.4%

20.0%

16.5%22.6%

17.4%

26.1%

33.6%29.0%

Argentina Brasil Chile Colombia Perú Uruguay

Top 1 Top 2 Top 3 Top 4 Top 5


Financial System Private Loans trend

RETAIL & COMMERCIAL LOANS GROWTH(YoY %)

Sources: BCRA as of September, 2019, INDEC, BBVA Research estimates

20%

16.4%13.2%

0%

20%

40%

60%

80%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Commercial Total Retail

7.6 %

10.6 % 10.7 %

13.4 %

11.8 %11.6 %

0%

5%

10%

15%

20%

2004 2007 2010 2013 2016 2019

TOTAL PRIVATE LOANS / GDP

Var YoY% 2016 2017 2018 2019 2019 YTD

Commercial 35% 53% 37% 20% 24%

Retail 29% 51% 30% 13% 11%

Total 32% 52% 33% 16% 17%


Financial System Private Deposits trend

SIGHT & TIME DEPOSITS GROWTH(YoY %)

16.3%

15.3%

14.0%14.7%

16.8%

20.4%

5%

10%

15%

20%

25%

2004 2007 2010 2013 2016 2019

TOTAL PRIVATE DEPOSITS / GDPAR$+USD

Var YoY% 2016 2017 2018 2019 2019 YTD

Time Deposits 14% 22% 77% 21% 2%

Sight Deposits 71% 34% 52% 31% 18%

Total 44% 44% 44% 27% 11%Sources: BCRA as of September, 2019, INDEC, BBVA Research estimates

21.1%

31.1%27.0%

0%

20%

40%

60%

80%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Time Deposits Side Deposits Total


Financial System Private Deposits and Loans growth

DEPOSITS AND LOAN GROWTH(YoY %)

Source: INDEC, BBVA Research estimates, September 2019

27.0%

16.4%

0%

20%

40%

60%

80%

2010 2013 2016 2019

Total Private Deposits Total Private Loans

20.4%

11.6 %

0%

6%

12%

18%

24%

2004 2007 2010 2013 2016 2019

Deposits Loans

DEPOSITS AND LOANS / GDPAR$+USD

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