SEC Form 6-K filed by Banco BBVA Argentina S.A. ADS

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of November 2024

Commission File Number: 001-12568

BBVA Argentina Bank S.A.

(Translation of registrant’s name into English)

111 Córdoba Av, C1054AAA

Buenos Aires, Argentina

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

Banco BBVA Argentina S.A.

TABLE OF CONTENTS

Banco BBVA Argentina S.A. announces Third Quarter 2024 results

Buenos Aires, November 20, 2024 – Banco BBVA Argentina S.A (NYSE; BYMA; MAE: BBAR; LATIBEX: XBBAR) (“BBVA Argentina” or “BBVA” or “the Bank”) announced today its consolidated results for the third quarter (3Q24), ended on September 30, 2024.

As of January 1, 2020, the Bank started to inform its inflation adjusted results pursuant to IAS 29 reporting. To facilitate comparison, figures of comparable quarters of 2023 and 2024 have been updated according to IAS 29 reporting to reflect the accumulated effect of inflation adjustment for each period up to September 30, 2024.

3Q24 Highlights

Message from the CFO

“The significant fiscal consolidation and relative exchange rate stability have contributed to a process of moderation of inflation throughout 2024. Furthermore, after a sharp contraction in the first half of the year, there are incipient signs of a recovery in economic activity, mostly in line with BBVA Research's expectations, which continue to forecast a 4.0% decline in GDP in 2024, followed by an expansion of 6.0% in 2025. As for inflation, expectations for further reduction have improved. A 120% inflation is estimated by year-end, versus the 211% on the same period of 2023. BBVA Research continues to expect within its base scenario, gradual easing of FX market restrictions during 4Q24 and 1Q25, combined with a final decline in the PAIS tax announced for December. Additionally, some signs of recovery start to appear, such as industrial activity which has increased 12% between June and September of 2024¹.

As of September 2024, private loans in pesos for the system grew 226% YoY, while BBVA Argentina increased its private loan portfolio in pesos by 263%². Both the System and BBVA loan growth exceeded that of inflation (which reached 209% YoY in September 2024). Taking this into consideration, we can continue to see a real monthly growth that started in April 2024 for BBVA Argentina and in May for the System. Consolidated market share of total private loans increased 100 bps from 9.35% as of September 2023, to 10.35% by September 2024, sustaining a two-digit figure and growing 50 bps year to date.

In line with this, the participation of loans in BBVA Argentina’s balance sheet has expanded for two quarters consecutively, going from 40% to 43% over assets. The System shows a ratio of loans over assets of 32% as of August 2024 (latest information available).

On the other hand, as of June 15, 2024, the Bank began to offer UVA adjusted mortgage credit lines for the purchase of a first or second house of permanent use. We believe that the return of these products to the market represents a sign of recovery in expectations, facing a general growth in credit in the country.

Concerning consolidated private deposits in pesos, the system grew 121% while the Bank grew 157% YoY, unable to beat inflation in the year in both cases. Consolidated market share of deposits for BBVA Argentina was 8.67%, 154 bps higher YoY from 7.13%, and growing 188 bps YTD.

It is important to mention that deposit growth was directly affected by the fiscal amnesty. The Bank has perceived in terms of fiscal amnesty accounts a net of USD 1.42 billion³, within an estimated total of USD 13 billion in the System⁴. Total USD deposits market share of BBVA Argentina was 10.47% in September, increasing from June’s 9.42% by 105 bps.

On the Bank’s results, net income for 3Q24 fell 21.6% QoQ, although a 15.7% accumulated increase is recorded for the first nine months of 2024. In spite of lower average interests rates affecting margins, the accumulated ROE remained in a level of 13.9%, in line with the 13.5% recorded in the first nine months of 2023. On the other hand, the accumulated efficiency ratios improved to 59.7% versus 63.8% in the same period of 2023.

As of September 2024, BBVA Argentina reached an NPL ratio of private loans of 1.18%, below the latest available indicator for the System (August 2024) of 1.65%. In terms of liquidity and solvency, the Bank ends the quarter with ratios of 67.3% and 22.2% respectively. The greater dynamic in credit activity in the system during the last months, the increase in market share by BBVA, in addition to the distribution of dividends that took place in 2Q24, capital ratio as of September was lower than in June 2024.

On digitalization, our service offering has evolved in such way that by the end of September 2024, mobile monetary transactions increased 41% compared to the same period a year back. In the year, new client acquisition through digital channels over traditional ones was 834%, while in September 2023 it was 80%.

Regarding ESG, BBVA Argentina has a corporate responsibility with society, inherent to the Bank’s business model, which bolsters inclusion, financial education and supports scientific research and culture.

Lastly, the Bank actively monitors its business, financial conditions and operating results, in the aim of keeping a competitive position to face contextual challenges in a decisive year for the Argentine Republic.”

Carmen Morillo Arroyo, CFO at BBVA Argentina

1 Source: INDEC, Manufacturing industrial production index, September 2024

2 Source: BCRA capital balances as of the last day of each period. Siscen information as of September 30, 2024

3 A 3500 FX Rate as of 09/30/2024 $970.92

4 Source: BBVA Research

Safe Harbor Statement

This press release contains certain forward-looking statements that reflect the current views and/or expectations of Banco BBVA Argentina and its management 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 and assumptions. 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 such statements due to, without limitation, (i) changes in general economic, financial, business, political, legal, social or other conditions in Argentina or elsewhere in Latin America or changes in either developed or emerging markets, (ii) changes in regional, national and international business and economic 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 limit our 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 financial services, (ix) changes in the financial condition, creditworthiness or solvency of the customers, debtors or counterparties of Banco BBVA Argentina, (x) increase in the allowances for loan losses, (xi) technological changes or an inability to implement new technologies, (xii) changes in consumer 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 with the U.S. Securities and Exchange Commission (SEC) and Comisión Nacional de Valores (CNV). Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as the date of this document. Banco BBVA Argentina is under no obligation and expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Information

This earnings release has been prepared in accordance with the accounting framework established by the Central Bank of Argentina (“BCRA”), based on International Financial Reporting Standards (“I.F.R.S.”) and the resolutions adopted by the International Accounting Standards Board (“I.A.S.B”) and by the Federación Argentina de Consejos Profesionales de Ciencias Económicas (“F.A.C.P.E.”), and with the the exclusion of the application of the IFRS 9 impairment model for non-financial public sector debt instruments.

The information in this press release contains unaudited financial information that consolidates, line item by line item, all of the banking activities of BBVA Argentina, including: BBVA Asset Management Argentina S.A., Consolidar AFJP-undergoing liquidation proceeding, PSA Finance Argentina Compañía Financiera S.A. (“PSA”) and Volkswagen Financial Services Compañía Financiera S.A (“VWFS”).

BBVA Seguros Argentina S.A. is disclosed on a consolidated basis recorded as Investments in associates (reported under the proportional consolidation method), and the corresponding results are reported as “Income from associates”), same as Rombo Compañía Financiera S.A. (“Rombo”), Play Digital S.A. (“MODO”), Openpay Argentina S.A. and Interbanking S.A.

Financial statements of subsidiaries have been elaborated as of the same dates and periods as Banco BBVA Argentina S.A.’s. In the case of consolidated companies PSA and VWFS, financial statements were prepared considering the B.C.R.A. accounting framework for institutions belonging to “Group C”, considering the model established by the IFRS 9 5.5. “Impairment” section for periods starting as of January 1, 2022, excluding debt instruments from the non-financial public sector.

The information published by the BBVA Group for Argentina is prepared according to IFRS, without considering the temporary exceptions established by BCRA.

Quarterly Results

BBVA Argentina 3Q24 net income was $99.12 billion, decreasing 21.6% or $27.4 billion quarter-over-quarter (QoQ) and increasing 224.8% or $68.7 billion year-over-year (YoY). This implied a quarterly ROAE of 16.9% and a quarterly ROAA of 3.4%.

The 41.3% fall in quarterly operating results were explained by a lower operating income, mainly due to (i) lower interest income, specially due to lower average market rates, as a result of a lower average monetary policy rate, (ii) lower interests from CPI linked bonds and (iii) lower results of foreign exchange and gold gains, mainly due to the Dual bond having matured. This was positively offset by a 17.6% decrease in operating expenses, mostly driven by lower Other operating expenses and Personnel benefits.

Net Income for the period was highly impacted by income from net monetary position, although with lower impact than the prior quarter. Inflation on 3Q24 was 12.1%⁵, lower than 2Q24’s 18.6%. Consequently, the income from net monetary position line recorded a 43.9% lower loss than the previous quarter, having a positive impact in the QoQ net income comparison.

⁵ Source: Instituto Nacional de Estadística y Censos (INDEC)

Lastly, Total OCI in 3Q24 reported a $73.104 billion loss, 37.8% lower than the loss recorded on 2Q24, explained by the results from financial instruments at FV through OCI, especially due to the maturity and sale of CPI linked bonds. Thus, total comprehensive income for the period in 3Q24 was $26.1 billion.

Income Statement – 9 month accumulated

In the first 9 months of 2024, BBVA Argentina net income was $271.2 billion, 15.7% higher than the $234.5 billion reported in the same period of 2023. This implied an accumulated annualized ROAE of 13.9% and a ROAA of 2.9% in 2024, compared to an accumulated annualized ROAE of 13.5% and a ROAA of 0.9% in nine months of 2023.

The 13.1% increment in real terms of the Bank’s operating income is mainly explained by (i) better net income from write-down of assets at FV through OCI, mainly due to the sale and maturity of CPI linked bonds, (ii) improvement in personnel benefits and (iii) improvement in other operating expenses. On the other hand, there is a decrease in net interest income due to lower yields on loans and securities, and a lower inflation accrued by CPI linked loans and securities.

Additional to these factors, the net result is impacted by the income from net monetary position line, in a context of lower inflation (2024 9-month-accumulated inflation was 101.6% while 2023 9-month-accumulated inflation was 138.3%), as a consequence of a higher average net monetary position in the first nine months of 2024.

Total OCI in the first nine months of 2024 totaled a $281.8 billion loss, mainly impacted by the loss of financial instruments at FV through OCI, especially due to the position of CPI-linked bonds by December 2023 which either reach maturity or are sold. Thus, the total comprehensive income for the first nine months of 2024 totaled a $10.6 billion loss.

Net Interest Income

Net interest income in 3Q24 was $460.3 billion, falling 39.5% or $300.6 billion QoQ, and 44.9% or $374.8 billion YoY. In 3Q24, interest income decreased more than interest expenses both in monetary and percentage terms. The former fall was due to a lower income from REPOs, and CPI linked bonds due to lower inflation, additional to a fall in income from loans. Expenses are explained by lower expenses on CER/UVA clause adjustments and lower interest on investment accounts.

In 3Q24, interest income totaled $760.2 billion, falling 30.3% compared to 2Q24 and 58.1% compared to 3Q23. Quarterly decrease is mainly driven by (i) lower income from REPOs and (ii) lower income from loans, both explained by a decline in the quarterly average monetary policy rate (in 2Q24 it decreased from 80% to 40% and for the rest of the quarter, in 3Q24 it remained in 40%). Also, the decline in quarterly inflation caused the decrease in income from CPI linked bonds.

Income from government securities increased 22.6% compared to 2Q24, and fell 73.0% compared to 3Q23. This is partially due to a greater position in LECAPs (Treasury bills capitalized in pesos). 90% of these results correspond to government securities at fair value through OCI and 10% correspond to securities at amortized cost (2027 National Treasury Bonds at fixed rate, National Treasury Bonds Private 0.70 Badlar Rate maturing on November 2027, and National Treasury Bonds CER 2025, used for reserve requirement integration).

Interest income from loans and other financing totaled $388.8 billion, decreasing 7.2% QoQ and 37.5% YoY. Quarterly decline is mainly due to a decrease in average rates, in spite of growth in real terms of the loan portfolio. Interest from loans with the sharpest decline were credit cards, overdrafts and discounted instruments, all of them affected by lower average rates and a greater assertiveness in loan commercialization.

Income from CER/UVA adjustments decreased 51.6% QoQ and 30.2% YoY. Quarterly decrease is explained by the delay with which the inflation adjustment effects are recorded, and impact on the subsequent financial statements, with a quarterly inflation below the previous quarter. 84% of income from interests from CER/UVA clause adjustments is explained by interests generated by CPI linked bonds.

Interest expenses totaled $299.9 billion, denoting a decrease of 9.3% QoQ and 69.3% YoY. Quarterly decline is described by lower investment account expenses and lower CER/UVA adjustment expenses, the latter due to a lower quarterly inflation.

Interests from time deposits (including investment accounts, excluding CER/UVA adjustments from time deposits) explain 71.0% of interest expenses, versus 64.6% the previous quarter. Time deposit expenses increased 33.8% QoQ and fall 67.4% YoY.

NIM

As of 3Q24, net interest margin (NIM) was 24.5%, below the 42.3% reported in 2Q24. In 3Q24, NIM in pesos was 26.5% and 3.3% in U.S. dollars.

Net Fee Income

Net fee income as of 3Q24 totaled $71.1 billion, increasing 7.9% or $5.2 billion QoQ and 35.7% or $18.7 billion YoY. The increase is explained by an increase in income and a greater fall in expenses in monetary terms.

In 3Q24, fee income totaled 133.2 billion pesos, increasing 1% QoQ, Improvement in fee income is mostly explained by (i) greater fee income linked to liabilities, (ii) higher other fee income, mainly account maintenance and bundles, and (ii) fees linked to securities. (i) and (ii) are mainly explained by price updates and more activity.

On the side of fee expenses, these totaled $62.1 billion, falling 6.0% QoQ and 8.2% YoY. This is explained by lower expenses due to processing fees and promotions on debit and credit cards, in addition to lower expenses from foreign trade transactions.

Net Income from Measurement of Financial Instruments at Fair Value and Foreign Exchange and Gold Gains/Losses

In 3Q24, net income from financial instruments at fair value (FV) through P&L was $29.3 billion, decreasing 15.6% or $5.4 billion QoQ and increasing 16.2% or $4.1 billion YoY.

Quarterly results are mainly explained by a decrease in the income from government securities line item, followed by a decrease in income from private securities, due to the valuation of sovereign bonds at fair value through P&L, in particular the maturity of the Dual bond.

This was positively offset by a lower quarterly loss in income from foreign currency forward transactions QoQ, and due to put options long position, as a result of the exchange offered by the Government on puts issued by the BCRA. As of July 18, 2024, the tender offer process took place for put options issued by the BCRA, which were part of the Bank’s portoflio (Communication “B” 12847 and “A” 7546). As a result of such process, put options were handed over 546.974.473.392 at face value.

In 3Q24, the total differences in quoted prices of gold and foreign currency showed profit for $4.9 billion, decreasing 75.3% or $15.0 billion compared to 2Q24.

The quarterly decrease in foreign exchange and gold gains is explained by a lower result in income from foreign exchange position mainly due to the effect of the Dual bonds maturity.

Other Operating Income

In 3Q24 other operating income totaled $29.2 billion, falling 9.2% or $3.0 billion QoQ, and 11.4% or $3.7 billion YoY. Quarterly decrease is mostly explained by a 34.6% fall in the Adjustments and interest on miscellaneous receivables line item, especially due to the credit card business guarantee fund, which is valuated in foreign currency, with a lower devaluation of the Argentine peso versus the U.S. dollar compared to the previous quarter. This was positively offset by greater income from rental of safe deposit boxes, together with other operating income.

Operating Expenses

Personnel Benefits and Administrative Expenses

During 3Q24, personnel benefits and administrative expenses totaled $224.1 billion, decreasing 11.9% or $30.2 billion compared to 2Q24, and 19.2% or $53.2 billion compared to 3Q23 in real terms.

Personnel benefits fell 18.1% QoQ, and 23.1% YoY. In spite of wages increasing in line with inflation, provisions recorded for the “Bankers’ day” benefit, stock of vacation days and variable remuneration, were adjusted by a lower projection of expected inflation.

As of 3Q24, administrative expenses fell 6.1% QoQ, and 15.7% YoY. This is mainly explained by (i) rent, (ii) taxes, and (iii) software. Rent and software are related to expenses of software licenses and services contracted with the Parent company. The tax line fell due to a contrast with 2Q24, in which income tax was paid in relation to the banking transaction tax, mainly as a result of dividend distribution).

The quarterly efficiency ratio as of 3Q24 was 59.2%, above the 55.3% reported in 2Q24, and improving versus the 82.4% reported in 3Q23. In spite of the numerator (expenses) decreasing, the denominator (income considering monetary position results) had a greater fall, especially due to a decrease in net interest income.

The accumulated efficiency ratio as of 3Q24 was 59.7%, below the 59.9% reported in 2Q24, and the 63.8% reported in 3Q23. The improvement in this ratio is due to a decrease in expenses, but especially due to an increase in net interest income.

Other Operating Expenses

In 3Q24, other operating expenses totaled $76.0 billion, decreasing 30.9% or $34.0 billion QoQ, and 42.9% or $57.1 billion YoY.

Lower turnover tax was recorded, mainly due to financial income at lower average rates of assets (loans in particular), and the shift of BCRA debt onto Treasury debt, which is not subject to turnover tax.

Income from Associates

This line reflects the results from non-consolidated associate companies. During 3Q24, a profit of $344 million has been reported, mainly due to the Bank’s participation in BBVA Seguros Argentina S.A., Rombo Compañía Financiera S.A., Interbanking S.A. and Play Digital S.A. and Openpay Argentina S.A.

Income Tax

Accumulated income tax during the first nine months of 2024 recorded a loss of $129.9 billion, while taxes for the quarter recorded a loss for $24.7 billion. The nine month accumulated effective tax rate in 2024 was 32%^6.

Accumulated income tax during the first nine months of 2023 recorded a loss of $127.4 billion, implying an effective tax rate of 35%.

⁶ Income tax, according to IAS 34, is recorded on interim financial periods over the best estimate of the weighted average tax rate expected for the fiscal year.

Balance sheet and activity

Loans and Other Financing

Private sector loans as of 3Q24 totaled $5.5 trillion, increasing 26.5% or $1.2 trillion QoQ, and 28.2% or $1.2 trillion YoY.

Loans to the private sector in pesos increased 23.0% in 3Q24, and 16.4% YoY. During the quarter, growth was especially driven by (i) a 48.0% increase in discounted instruments, followed by (ii) a 51.0% increase in consumer loans, (iii) a 14.2% increase in credit cards, and (iv) an increase in other loans, mainly commercial loans (PIV) and floorplan⁷. In all cases, the increment is boosted by genuine growth in real terms of the portfolio, levered on the lower market interest rates and a greater commercial efforts.

Loans to the private sector denominated in foreign currency increased 50.0% QoQ and 190.0% YoY. Quarterly increase is mainly explained by a 15.8% growth in financing and prefinancing of exports, and a 270.3% growth in discounted instruments. Loans to the private sector in foreign currency measured in U.S. dollars increased 58.0% QoQ and 224.2% YoY. The depreciation of the argentine peso versus the U.S. dollar was 6.1% QoQ and 64.0% YoY⁸.

In 3Q24, total loans and other financing totaled $5.5 trillion, increasing 26.8% QoQ and 28.7% compared to 3Q23.

In real terms, retail loans (mortgage, pledge, consumer and credit cards, including loans to personnel) increased 22.2% QoQ and 45.0% YoY in real terms. During the quarter, growth is most evident in consumer loans increasing 51.0% and credit cards 12.9%.

Commercial loans (overdrafts, discounted instruments, receivables from financial leases, loans for the prefinancing and financing of exports, and other loans) increased 30.2% QoQ and 51.0% YoY, both in real terms. In the quarter, it is noted that discounted instruments increased 50.9%, and overdrafts decreased 18.5%.

As observed in previous quarters, loan portfolios were impacted by the effect of inflation during the third quarter of 2024, which reached 12.1%. In nominal terms, BBVA Argentina managed to increase the retail, commercial and total loan portfolio by 38.6%, 44.5% and 42.1% respectively during the quarter, surpassing quarterly inflation levels in all cases.

⁷ Floorplan: loans through which the official dealership network finances vehicle stock, spare parts and other equipment goods.

⁸ Taking into consideration wholesale U.S. dollar foreign exchange rates on BCRA’s Communication “A” 3500.

As of 3Q24, the total gross loans and other financing over deposits ratio was 64.9%, below the 67.0% recorded in 2Q24 and above the 53.6% in 3Q23.

Total loan participation over total assets is 43%, versus 40% in 2Q24 and 35% in 3Q23, evidencing lower exposure to the public sector, in line with real loan growth demand.

Asset Quality

As of 3Q24, asset quality ratio or NPL (total non-performing portfolio / total portfolio) keeps a very good performance at 1.18%, with non-performing loans growing in line with the total portfolio.

Coverage ratio (allowances / total non-performing portfolio) reached 152.98% in 3Q24, from 165.5% in 2Q24. The decline is due to an improvement in the credit quality of the regular commercial portfolio.

Cost of risk (loan loss allowances / average total loans) reached 3.31% in 3Q24 compared to 4.72% in 2Q24. This is explained by an improvement in credit profiles of the commercial portfolio.

Allowances for the Bank in 3Q24 reflect expected losses driven by the adoption of the IFRS 9 standards as of January 1, 2020, except for debt instruments issued by the nonfinancial government sector which were excluded from the scope of such standard.

Public Sector Exposure

3Q24 total public sector exposure (excluding BCRA) totaled $2.6 trillion, decreasing 6.4% or $181.4 trillion QoQ, and 72.4% or $1.1 trillion YoY.

The quarterly decrease is explained by the maturity of securities in ARS adjusted by USD, in particular the Dual bonds TDJ24, matured on June 30, 2024. As of July 2024, the market reference rate will be that of the new instrument created by the Treasury, the LeFis (Letra Fiscal de Liquidez), which ended the quarter with no position.

As a result of the monetary policy adopted by the Treasury and the BCRA, BCRA exposure fell 87.3%, mainly due to the removal of REPOs with the BCRA from the market.

Exposure to the public sector, excluding BCRA exposure, represent 21.0% of total assets, below the 26.3% of 2Q24 and 12.7% in 3Q23, and as mentioned before, in line with real loan growth demand.

Deposits

As of 3Q24, total deposits reached $8.5 trillion, increasing 30.9% or $2.0 trillion QoQ, and 6.4% or $514.7 billion YoY.

Private non-financial sector deposits in 3Q24 totaled $8.4 trillion, increasing 32.4% QoQ, and 5.2% YoY.

Private non-financial sector deposits in pesos totaled $5.1 trillion, increasing 12.4% compared to 2Q24, and falling 19.6% compared to 3Q23. The quarterly change is mainly affected by a 34.8% increase in time deposits, and 13.9% increase in checking accounts (especially interest bearing checking accounts), offset by a 45.2% fall in investment accounts and a 7.3% fall in savings accounts.

Private non-financial sector deposits in foreign currency expressed in pesos increased 84.9% QoQ and 107.2% YoY. This is mainly explained by an 88.6% increase in savings accounts, directly affected by the fiscal amnesty promoted by the Government.

As observed in previous quarters, deposits were impacted by the effect of inflation. This being said, in nominal terms, BBVA Argentina managed to increase the sight deposits, time deposits and total deposits by 53.4%, 39.0% and 48.5% respectively, surpassing the quarterly level of inflation in all cases.

As of 3Q24, the Bank’s transactional deposits (checking accounts and savings accounts) represented 68.1% of total non-financial private deposits, totaling $5.7 trillion, versus 65.9% in 2Q24.

Other Sources of Funds

In 3Q24, other sources of funds totaled $2.6 trillion, decreasing 0.7% or $17.5 billion QoQ, and increasing 7.2% or $175.9 billion YoY.

The variation in the quarter is mostly explained by a 100.0% decrease in REPOs and guaranteed securities, offset by an increase of 254.0% in financing received from local financial institutions, mainly by the subsidiaries.

As of September 23, 2024, the Bank issued corporate bonds for $24.5 billion at face value, at BADLAR+5% rate and maturity on June 23, 2025, with quarterly interest payments. BBVA Argentina last corporate bond issuance was in 2019.

Liquid Assets

In 3Q24, liquid assets were $5.7 trillion, increasing 26.6% or $1.2 trillion versus 2Q24, and falling 6.5% or $401.2 billion compared to 3Q23. This was mainly driven by an increase in cash and deposits in banks, especially due to the fiscal amnesty.

In the quarter, the liquidity ratio (liquid assets / total deposits) reached 67.3%. Liquidity ratio in local and foreign currency reached 58.6% and 89.0% respectively. The decline is explained by the greater growth in total deposits than that of liquid assets.

Solvency