BBVA Argentina 3Q 2019 Corporate Presentation December 2019 - - PowerPoint PPT Presentation

BBVA Argentina

3Q 2019 Corporate Presentation

December 2019

1 Corporate 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 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

• ur 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 Comision Nacional de Valores (CNV). Readers are cautioned not to place undue reliance

• n 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

• therwise.

2 Corporate Presentation 3Q 2019

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 Total Deposits

TOTAL CUSTOMERS

SEPTEMBER 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

857

AR$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 +800

Digital Customers1

+1.2 m

Mobile Customers2

+0.9 m BBVA Argentina 3Q19 highlights

In-company branches

13

Customer service booths

2

BBVA Purpose

01

4 Corporate Presentation 3Q 2019

We are BBVA. We create opportunities

SIX STRATEGIC PRIORITIES OUR PURPOSE

To bring the age of

• pportunity

to everyone

New standard in customer experience A first class workforce Digital sales Unrivaled efficiency New business models Optimize capital allocation

5 Corporate Presentation 3Q 2019

New value proposition

Providing the best solutions

that generate trust for our customers, being clear, transparent and based

• n integrity

Helping our customers

to make the best financial decisions offering relevant advice

Through an easy and convenient experience

DIY through digital channels or human interaction

Based on our customers’ real needs Our aspiration is to strengthen the relationship with the customer

6 Corporate Presentation 3Q 2019

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

8 Corporate Presentation 3Q 2019

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 ratio 3.31% Capital Ratio 17.1% TIER I 16.4%

AR$ 11.1bn +264.6% YoY 03 Net Fee Income

Coverage ratio 105.08% ROE 81.3%

AR$ 1.6bn (11.0%) YoY

ROA 11.0%

04

Administrative + Personnel Expenses

AR$ 7.1bn +64.1% YoY

9 Corporate Presentation 3Q 2019

A leading bank…

Source: “Información de entidades financieras”, BCRA, as of September 2019 1.234 602 557 526 402 383 253 225 215 211 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%

Nación Galicia Santander Provincia BBVA Macro HSBC Ciudad ICBC Credicoop Rest of the System Financial System

Assets (AR$ bn - % Market Share)

121 77 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%

Nacion Macro Galicia Santander BBVA Provincia ICBC Patagonia Citi Credicoop Rest of the System Financial System

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%

Galicia Macro BBVA Santander CITI Patagonia HSBC ICBC Credicoop Provincia Rest of the System Financial System

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%

Nacion Santander Galicia Provincia BBVA Macro HSBC Ciudad Credicoop ICBC Rest of the System Financial System

Liabilities (AR$ bn - % Market Share)

10 Corporate Presentation 3Q 2019 378 241 231 213 182 164 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%*

Nacion Galicia Santander Provincia BBVA Macro HSBC Ciudad ICBC Patagonia Rest of the System Financial System

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%

Nacion Provincia Santander Galicia BBVA Macro HSBC Credicoop Ciudad ICBC Rest of the System Financial System

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%*

11 Corporate Presentation 3Q 2019

… 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

12 Corporate Presentation 3Q 2019

33% 34% 10% 4% 6% 7% 7%

CABA Prov Bs. As Litoral NOA Cuyo Centro Patagonia

BBVA BMA SUPV 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*:

13 Corporate Presentation 3Q 2019

and a growth strategy focused on two key goals

Digitalization Servicing Differentiated commercial offering Digital acquisition engines Development of key digital competences

OPEN MARKET TRANSFORMATION

14 Corporate Presentation 3Q 2019

Equity Ownership

OWNERSHIP STRUCTURE

ANSES 6,9% ByMA* 6,2% NYSE 20,3%

66,55% Free Float 26,55%

SUBSIDIARIES AND EQUITY PARTICIPATIONS

BBVA Asset Management 95% BBVA Francés Valores** 97% PSA Finance* 50% Volkswagen Financial Services* 51% Rombo Compañía Financiera* 40% BBVA Seguros 12.22%

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)

15 Corporate Presentation 3Q 2019

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.

16 Corporate Presentation 3Q 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

NIM

W/ FX difference

NET INTEREST MARGIN (AR$ billions)

NIM

W/o FX difference

12,3% 20,0% 20,4% 15,6% 23,1% 25,6%

+133%

20.4 16.5 8.7

17 Corporate Presentation 3Q 2019

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

18 Corporate Presentation 3Q 2019

Fees & Expenses

NET FEE INCOME (AR$ billions)

3,7 4,4 4,7

• 2,0
• 2,4
• 3,1

1,8 1,9 1,6

3Q18 2Q19 3Q19

Fee Income Fee Expenses Net Fee Income

ADMINISTRATIVE EXPENSES (AR$ billions)

+64%

• 11%

2,5 3,2 3,6 1,8 2,4 3,5

3Q18 2Q19 3Q19

Personnel Expenses Administrative Expenses

19 Corporate Presentation 3Q 2019

Solid Balance Sheet Structure

Leverage 7.1x Total 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)

37% 63% 69% 66% 0% 1% 1% 2% 7% 13% 13% 17% 7% 9% 12% 14%

213 355 393 414 2017 2018 2Q19 3Q19

Deposits Corporate Bonds Other Liabilities Equity

LIABILITIES & EQUITY (AR$ billions)

20 Corporate Presentation 3Q 2019

Public + Financial 1,3% Corporate 23,9% SMEs 24,3% Retail* 50,4%

Loans

+18%

NET PRIVATE LOANS STRUCTURE

AR$ 71% USD 29% Personal Loans

22.4%

Mortgages

12.0%

Car Loans

15.5%

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%

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

*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

21 Corporate Presentation 3Q 2019

Loans by segment

Overdrafts 13% Documents 6% Mortgage 15% Pledge 7% Personal 25% Credit Card 29% Other Loans 4%

FINANCIAL SYSTEM* (%)

Mortgage 12% Pledge 16% Personal 22% Credit Card 50%

RETAIL

Overdrafts 17% Documents 21% Other Loans 62%

COMMERCIAL

Overdrafts 8% Documents 10% Mortgage 6% Pledge 8% Personal 11% Credit Card 25% Other Loans 30%

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

BBVA (%)

22 Corporate Presentation 3Q 2019

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

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

+8.7%

CREDIT CARDS (AR$ billions)

13.57% 15.15% 14.93%

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

CREDIT CARD CONSUPTION MARKET SHARE*

37,4 47,8 53,4

1.991 2.107 2.150

3Q18 2Q19 3Q19

Volume (billions) Credit card stock (million cards)

+43%

23 Corporate Presentation 3Q 2019

Retail loan portfolio

MORTGAGES (AR$ billions)

3.35% 3.35% 3.25%

8,7 12,0 12,8 3Q18 2Q19 3Q19

+47%

MORTGAGE LOANS MARKET SHARE

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

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

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

PLEDGE LOANS MARKET SHARE**

24 Corporate Presentation 3Q 2019

Commercial banking loan portfolio

+2.8%

AR$ 34% USD 66% 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

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

25 Corporate Presentation 3Q 2019

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

26 Corporate Presentation 3Q 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 Banks

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

27 Corporate Presentation 3Q 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

28 Corporate Presentation 3Q 2019

Deposits

AR$ 56% USD 44%

TOTAL DEPOSITS (AR$ billions) DEPOSITS STRUCTURE

Current accounts 15,6% Savings accounts 50,6% Time deposits 31,9% Others 1,9%

8.42% 7.35% 7.14%

PRIVATE DEPOSITS MARKET SHARE*

247,2 285,2 274,5 3Q18 2Q19 3Q19

+11%

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

DEPOSITS BY CURRENCY

29 Corporate Presentation 3Q 2019

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

30 Corporate Presentation 3Q 2019

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%)

31 Corporate Presentation 3Q 2019 *Over private sector loans Source: 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

32 Corporate Presentation 3Q 2019

BBVA Argentina P&L Breakdown

Income 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%

33 Corporate Presentation 3Q 2019

BBVA Argentina Balance Sheet

Balance 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

34 Corporate Presentation 3Q 2019

BBVA Argentina Balance Sheet

Balance 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

35 Corporate Presentation 3Q 2019

BBVA Argentina Outstanding corporate bond debt

Series Issue Date Nominal Amount (thousands AR$) Maturity Coupon Coupon Frequency Rating (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 12/27/2020 Floating +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 8/28/2020 Floating +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

37 Corporate Presentation 3Q 2019

Adequate systemic levels of liquidity and solvency

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

CAPITAL

Capital/RWA according to BCRA regulation

LIQUIDITY

Cash + 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

38 Corporate Presentation 3Q 2019

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

39 Corporate Presentation 3Q 2019

A small financial system with good infrastructure, prepared for potential growth

LATAM PRIVATE LOANS AND TOTAL DEPOSITS (% OF GDP)

13,5 58,9 14,0 49,9 14,9 42,3 7,4 114,7

25 50 75 100 125 Branches of Commercial Banks per 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

40 Corporate Presentation 3Q 2019

LATAM financial concentration

# OF FINANCIAL INSTITUTIONS PER COUNTRY TOTAL LOANS MARKET SHARE

Source: Central Banks, Bankscope, IMF

16,5% 18,0% 17,4% 26,1% 33,6% 29,0% 8,9% 22,6% 16,9% 12,1% 20,4% 20,0% 11,1% 9,5% 13,6% 15,8% 17,2% 16,8% 9,9% 7,4% 16,0% 10,1% 12,6% 11,8% 17,2% 13,1% 28,9% 16,2% 16,2% 19,5%

0% 25% 50% 75% 100% Argentina Brasil Chile Colombia Perú Uruguay Top 1 Top 2 Top 3 Top 4 Top 5

63 50 25 19 15

ARG MEX COL CHI PER

41 Corporate Presentation 3Q 2019

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%

42 Corporate Presentation 3Q 2019

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 / GDP

AR$+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

43 Corporate Presentation 3Q 2019

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 / GDP

AR$+USD

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