BBVA Argentina (BBAR) Q2 2026 Earnings Call Transcript

Investor Relations Manager - María Belén Fourcade

IRO and Head of Assets and Liability Management - Diego Cesarini

Chief Financial Officer - Carmen Morillo Arroyo

Operator: Good morning, everyone, and welcome to BBVA Argentina's Second Quarter 2026 Results Conference Call. Today with us are Mrs. Belén Fourcade, Investor Relations Manager; Diego Cesarini, IRO and Head of Assets and Liability Management; and Carmen Morillo Arroyo, CFO. This presentation and the second quarter 2026 earnings release are available on BBVA Argentina's Investor Relations website, ir.bbva.com.ar, and will also be available for download in the chat. First of all, let me point out that some of the statements made during this conference call may be forward-looking statements with the meaning of the safe harbor provision 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. Additional information concerning these factors is contained in BBVA Argentina's annual report on Form 20-F for the fiscal year 2025 filed with the U.S. Securities and Exchange Commission. I will now turn the call over to Belén Fourcade. Please go ahead.

María Belén Fourcade: Good morning, everyone, and thank you for joining us today for BBVA Argentina's Second Quarter 2026 Results Conference Call. During the second quarter of 2026, inflation continued to decline, reinforcing expectations that this trend will further consolidate. This environment should support a recovery in credit and consumption together with an improvement in real incomes. Economic activity, while showing differences across sectors is displaying signs of overall growth. In addition, announcements and approvals of projects under the RIGI continued, totaling more than $15 billion during the quarter with the potential to increase capital inflows and strengthen the trade balance. The treasury also made progress in improving its debt maturity profile.

It extended a significant portion of local currency maturities to 2028 and 2029 and in foreign currency, lengthened the maturities of repo agreements with banks and the swap agreement with China, while also securing financing backed by the IFI guarantees. These developments, together with reserve purchases of more than $13 billion are helping to reduce uncertainty and strengthen the macroeconomic outlook. The second quarter showed early signs of a recovery in lending activity, gradually reflecting the effects of the decline in interest rates and more favorable seasonality, although still affected by elevated delinquency levels. Moving into our financial highlights for the quarter. BBVA Argentina posted an inflation-adjusted net income of ARS 131.6 billion for the second quarter of 2026.