BBVA Argentina 2019 Corporate Presentation March 2020 Corporate - - PowerPoint PPT Presentation

BBVA Argentina

2019 Corporate Presentation

March 2020

1 Corporate Presentation 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 2019

Main variables

62.30

$/US$

ARS/USD Rate +59.0% YoY

44.8

U$S bn

INTERNATIONAL RESERVES

• 49,7% Var. YoY

52.9%

Jan’20

INFLATION YoY 40.0% REM Consensus

• Dec. 2020

40.0%

Monetary policy Rate

• 1055 bps Var. YoY

Alberto Fernández Government is going through its first months, focused in stabilizing the economy and public debt restructuring. The “Juntos por el Cambio” front is still present, showing ability to negotiate in the legislative scene. BBVA still estimates a sustained inflation for 2020, considering possible minor FX rate increases, an expansive monetary policy and the recomposing of regulated prices for 2H19. The Central Bank has been reducing the monetary policy rate, deriving in negative real interest rates for the estimated inflation for 2020. In 2019, industrial activity fell 6.4% YoY. All sectors have been hit, specially the automotive and transport industry. Tight negotiation and restructuring schedule set by the Ministry of Economy. Expansive fiscal policies not consistent with a welcoming debt restructuring.

Macro view

As of March 4, 2020

MONETARY POLICY ACTIVITY SOVEREIGN DEBT POLITICS

Employees**

6,321

branches

251

AR$6.6 bn

Net Fee Income

3.57%

NPL ratio

113.04%

Coverage ratio

AR$440.3 bn Total assets AR$201.5 bn Loans to the private sector AR$294.0 bn Total Deposits

TOTAL ACTIVE CUSTOMERS

DECEMBER 2019

PRV3

55.7%

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 *Operating expenses: includes administration, personnel benefits, depreciations and other expenses. **corresponds to total effective employees, net of temporary contract employees

ATMs

887

ATSs

862

AR$55.2 bn

Net Interest Income

37.0%

Efficiency ratio

AR$31.4 bn

Net Income

AR$44.7 bn

• Op. Expenses*

7.9%

ROA

60.6%

ROE

DIGITAL SALES

SMEs CIB

+53 k +700

Digital Customers1

+1.7 m

Mobile Customers2

+1.4 m

BBVA Argentina 2019 highlights

In-company branches

15

Customer service booths

2

Financial System

01

5 Corporate Presentation 2019

Adequate systemic levels of liquidity and solvency

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

CAPITAL (%)

Capital/RWA according to BCRA regulation

LIQUIDITY (%)

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

NPL (%)

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

13 16.7 15.6 16.0 16.3 17.5 5.00 1.80 1.80 3.10 4.80 5.60 46.7 49.0 42.6 56.6 57.5 60.1

2015 2016 2017 2018 3Q19 4Q19

6 Corporate Presentation 2019

Positive nominal and real profitability for private banks

ROE (ACCUMULATED ANNUALIZED) 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 December, 2019

26.9% 39.4% 24.8% 47.6% 53.5% 53.8% 31.2% 29.4% 26.6% 35.6% 55.6% 59.2% 32.4% 29.6% 23.4% 36.1% 41.4% 44.4%

2015 2016 2017 2018 3Q19 4Q19

Inflation YoY Private Banks ROE System ROE BBVA ROE 60.6%

7 Corporate Presentation 2019

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

LATAM PRIVATE LOANS AND TOTAL DEPOSITS (% of GDP) BRANCHES AND ATMs/100,000 ADULT POPULATION

(Branches and ATMs / 100,000 adult population)

Source: IMF and BBVA Research as of 2018 for Credit and Deposits as % of GDP, and as of 2017 for Branches and ATMs..

9.9% 15.9% 94.7% 60.1% 45.5% 40.7% 34.7% 32.2%

Credit (%GDP) Deposits (%GDP)

Argentina Chile Colombia Peru

13.5 58.9 14.0 49.9 14.9 42.3 73.6 11.5

Branches ATMs

Argentina Chile Colombia Peru

8 Corporate Presentation 2019

Financial System Private Growth Rates

RETAIL & COMMERCIAL LOANS GROWTH (YoY %)

Var YoY% 2016 2017 2018 2019 Commercial 35% 53% 37% 15% Retail 29% 51% 30% 16% Total 32% 52% 33% 16%

16% 16% 15% 0% 20% 40% 60% 80% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Retail Total Commercial

DEMAND & TIME DEPOSITS GROWTH (YoY %)

Sources: BCRA as of December, 2019

Var YoY% 2016 2017 2018 2019 Sight Deposits 14% 22% 77% 30% Time Deposits 71% 34% 52% 19% Total 44% 29% 61% 25%

19% 30% 25% 0% 20% 40% 60% 80% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Time Deposits Sight Deposits Total

BBVA Argentina

02

10 Corporate Presentation 2019

A leading bank…

Source: “Informe de entidades financieras”, BCRA, as of December 2019

1,325 596 621 548 431 425 299 250 232 225 1,780 6,732 19.7% 8.9% 9.2% 8.1% 6.4% 6.3% 4.4% 3.7% 3.4% 3.3% 26.4%

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

Assets (AR$ bn - % Market Share)

120 90 78 64 64 54 36 37 33 30 291 897 13.3% 10.0% 8.7% 7.2% 7.2% 6.0% 4.0% 4.1% 3.7% 3.3% 32.4%

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

Equity (AR$ bn - % Market Share)

Public Banks Private Banks 40.8 35.2 31.0 25.6 22.7 17.6 14.8 13.5 12.3 7.6 135.9 316.2 12.9% 11.1% 9.8% 8.1% 7.2% 5.6% 4.7% 4.3% 3.9% 2.4% 43.0%

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

Earnings (AR$ bn - % Market Share)

1,206 557 518 494 368 336 268 220 203 187 1,480 5,836 20.7% 9.5% 8.9% 8.5% 6.3% 5.7% 4.6% 3.8% 3.5% 3.2% 25.4%

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

Liabilities (AR$ bn - % Market Share)

11 Corporate Presentation 2019

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

…in a fragmented financial system…

477 312 277 246 220 189 110 115 96 84 678 2,804 17.0% 11.1% 9.9% 8.8% 7.8% 6.7% 3.9% 4.1% 3.4% 3.0% 24.2%

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

Total Private Loans (AR$ bn - % Market Share)

1,115 475 449 398 293 262 219 193 185 128 1,119 4,837 23.1% 9.8% 9.3% 8.2% 6.1% 5.4% 4.5% 4.0% 3.8% 2.7% 23.1%

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

Total Private Deposits (AR$ bn - % Market Share)

7.7%* Public Banks Private Banks

12 Corporate Presentation 2019

…with a diversified business model

Physical Structure

 Branches  ATM/ATS  Call center  Customer service booth  POS*  In-Company banks

MULTICHANNEL STRUCTURE

Digital Channels

 Web  Mobile

Exclusive Partnerships

JVs ALLIANCES

*POS: Includes points of sale in supermarkets and shopping centers

2019 Financial Results

03

14 Corporate Presentation 2019

2019 Highlights

01

Net Income

02 Net Interest Income 05

Risk indicators

06 Strong capital position

07 Focus on shareholder value AR$ 55.2 bn NPL ratio 3.57% Capital Ratio 17.8% TIER I 17.2% AR$ 31.4 bn

03 Net Fee Income

Coverage ratio 113.04% ROE 60.6% ROA 7.9%

04

Operating expenses +223.0% YoY +111.4% YoY AR$ 6.6 bn +20.4% YoY AR$ 44.7 bn +81.3% YoY

15 Corporate Presentation 2019

Balance Sheet Structure

Total Loans/Total Deposits 67%

ASSETS (AR$ billions) LIABILITIES & EQUITY (AR$ billions)

28% 27% 23% 23% 35% 12% 17% 21% 18% 11% 51% 48% 47% 50% 45% 8% 9% 8% 9% 8%

355 388 393 414 440

2018 1Q19 2Q19 3Q19 2019

Cash and Deposits in banks Private and Public Debt securities Loans and other financing Other assets

73% 72% 73% 66% 67% 11% 11% 12% 14% 15%

355 388 393 414 440

2018 1Q19 2Q19 3Q19 2019

Deposits Corporate bonds issued Financing received from other financial inst Other liabilities Total Equity

70% 66% 65% 75% 67%

LOANS /DEPOSITS

16 Corporate Presentation 2019

Corporate 17% SMEs 24% Retail* 59%

Loans – Prudential Reduction of USD Loans

NET PRIVATE LOANS STRUCTURE

Personal Loans

22.4%

Mortgages

12.0%

Car Loans

15.5%

TOTAL PRIVATE LOAN PORTFOLIO (AR$ billions)

PRIVATE SECTOR LOANS MARKET SHARE %*

2018 2019

Bank 7.75% 6.93% Consolidated** 8.71% 7.71%

*Based on daily information from BCRA. Capital balance as of last day of each quarter. **Consolidates PSA, VWFS and Rombo

*Corporate credit cards included

+15%

65% 61% 63% 71% 82% 35% 39% 37% 29% 18%

176 184 185 212 201

2018 1Q19 2Q19 3Q19 2019

ARS USD

• 39.9%

+ 43.6%

17 Corporate Presentation 2019

Loans by Segment

COMMERCIAL (%) 41% OF PRIVATE LOANS

Mortgage 12% Pledge 7% Personal 20% Credit Card 61% Overdrafts 17% Documents 29% Leasing 2% Other financing 52%*

AR$ 118 bn AR$ 83 bn

RETAIL (%) 59% OF PRIVATE LOANS BBVA (% over total private loans)

* Other financing: PIV + Export financing 14% 12% 10% 10% 12% 6% 6% 7% 6% 7% 13% 13% 13% 11% 12% 7% 4% 5% 8% 7% 24% 25% 26% 25% 36% 8% 4% 34% 38% 37% 30% 21%

176 184 185 212 201

2018 1Q19 2Q19 3Q19 2019

Documents Mortgage Loans Personal Loans Overdrafts Credit Cards Financial leases Auto Loans Other financing

18 Corporate Presentation 2019

Retail Loan Portfolio

PERSONAL LOANS (AR$ billions)

5.29% in 2018 5.00% in 2019

PERSONAL LOANS MARKET SHARE*

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

CREDIT CARDS (AR$ billions)

• 0.4%

+73%

*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 MARKET SHARE %*

2018 2019 Financing 10.91% 12.19% Consumption 13.97% 15.35% 24 24 24 24 23

2018 1Q19 2Q19 3Q19 2019

42 45 48 53 72

2,063 2,085 2,107 2,211 2,248

2018 1Q19 2Q19 3Q19 2019

Credit Cards Credit Card Stock (in thousands)

19 Corporate Presentation 2019

Retail Loan Portfolio

AUTO LOANS (CONSOLIDATED, PRO- FORMA) (AR$ billions)

15.65% in 2018 14.48% in 2019

AUTO LOANS MARKET SHARE**

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

MORTGAGE LOANS (AR$ billions)

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

3.36% in 2018 3.15% in 2019

MORTGAGE LOANS MARKET SHARE* 1

Ranking vs. Peers – Only considering Private Banks. 2019 as of December.

10 11 12 13 14

2018 1Q19 2Q19 3Q19 2019

1

1.65 1.63 1.54 1.46 1.35 17.88 17.06 16.31 16.09 15.50

19.5 18.7 17.8 17.6 16.8

2018 1Q19 2Q19 3Q19 2019

Bank only JV's

• 14%

+40%

20 Corporate Presentation 2019

• 16%

Commercial Banking Loan Portfolio

COMMERCIAL LOANS BY CURRENCY (%)

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

COMMERCIAL LOANS (AR$ billions)

ARS 59% USD 41%

**Other financing: 30% in pesos - 70% in foreign currency

COMMERCIAL LOANS MKT SHARE%*

2018 2019 Loans in $ 8.44% 7.55% Loans in USD 10.78% 5.74%

12% 8% 10% 17% 17% 25% 22% 19% 21% 29% 2% 2% 2% 2% 2% 61% 68% 69% 60% 52%

99 102 99 105 83

2018 1Q19 2Q19 3Q19 2019

Overdrafts Documents Financial leases Other financing*

• 49% USD

+48% ARS

21 Corporate Presentation 2019

Deposits

TOTAL PRIVATE DEPOSITS (AR$ billions) PRIVATE DEPOSITS STRUCTURE

7.97% in 2018 7.14% in 2019

PRIVATE DEPOSITS MARKET SHARE*

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

+13%

Currenct account 31% Savings accounts 29% Time deposits 39% Other 2%

IN AR$ (%) IN USD (%)

Savings accounts 84% Time deposits 14% Other 1%

AR$ 116 bn

56% 52% 53% 56% 60% 44% 48% 47% 44% 40%

258 277 281 272 291

2018 1Q19 2Q19 3Q19 2019

ARS USD

AR$ 175 bn

22 Corporate Presentation 2019

Outstanding Results despite a Challenging Environment

ROA(%) ROE (%) NET INCOME (AR$ billions) EFFICIENCY (%)

• 1,191 bps

+223% +449 bps +3,212bps

9.7 31.4

2018 2019

3.4% 7.9%

2018 2019

48.9% 37.0%

2018 2019

28.5% 60.6%

2018 2019

23 Corporate Presentation 2019

Robust Core Revenue Growth

NET INTEREST INCOME (AR$ billions)

Interest Income Financial Sector Other Interest Income Commercial Retail From Private and Public Securities Interest Expense Time deposits Other Checking accounts 47 94

• 21
• 39

2018 2019

Savings accounts represent less than 1% of expenses

+111% NII growth based on Appropriate liquidity management Client spread improvement High interest rates

26 55

NET INTEREST INCOME (IN AR$ BILLIONS)

24 Corporate Presentation 2019

Further Improvement in Best-in-Class Efficiency

NET FEE INCOME (AR$ billions) OPERATING EXPENSES (AR$ billions)

+20% +81%

12.4 18.0

• 6.9
• 11.4

5.5 6.6

2018 2019

Fee Income Fee expenses Net Fee Income

Efficiency Ratio

37% vs. 49% in 2018

2.6 3.6 4.1 2.2 3.5 3.8 0.2 0.4 0.8 2.4 3.2 5.5

7 11 14

2018 3Q19 2019

Personnel benefits Adminsitrative expenses Depreciation and amortization Other operating expenses

25 Corporate Presentation 2019

Sound Risk Indicators

NPL & COVERAGE* (%) NPL PEER GROUP & FINANCIAL SYSTEM (%)

5.60% 7.40% 5.52% 3.57% 2.07%

System SUPV GGAL BBAR BMA

Source: System: “Información de Bancos”, BCRA, as of December 2019. Peers: Earnings Releases.

*Bank only 1.93% 3.32% 3.64% 1.88% 2.73% 3.28% 2.30% 2.50%

100.0% 102.0% 104.0% 106.0% 108.0% 110.0% 112.0% 114.0% 116.0% 118.0% 120.0%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4Q18 3Q19 4Q19

Coverage NPL Cost of Risk NPL w/o Molca

26 Corporate Presentation 2019

Limited Public Sector Exposure

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

Provinces and Public Sector loans amount for 0.3% in 4Q19

BBVA BCRA EXPOSURE (AR$ billions)

% PUBLIC SECTOR EXPOSURE (EXCL. BCRA) /TOTAL ASSETS

BBVA PUBLIC SECTOR EXPOSURE (AR$ billions)

33% 48% 54% 13% 1% 1% 50% 44% 53%

23.8 17.9 16.1

4Q18 3Q19 4Q19

Public Debt in pesos Public Debt in US dollars Public Debt in pesos, US dollar-Linked Repo 100% 89% 100% 11%

20.2 60.3 33.1

4Q18 3Q19 4Q19

Leliqs Lebacs Repo

5.4% 6.7% 4.3% 3.7% 8.4% 10.4% 9.7% 10.0%

2017 2018 3Q19 2019

BBVA Financial System*

27 Corporate Presentation 2019

Liquid Assets – Improvement in Mix Structure

TOTAL LIQUID ASSETS (%)

55% 60% 61% 62% 70%

TOTAL LIQUID ASSETS/TOTAL DEPOSITS

PRIVATE DEPOSIT BASE (%)

+18%

11% 9% 9% 17% 23% 53% 49% 42% 35% 52% 6% 4% 4% 8% 8% 11% 9% 8% 14% 18% 33% 32% 16% 9% 13% 3% 4%

173 168 173 169 205

2018 1Q19 2Q19 3Q19 2019

Cash B.C.R.A Other local and foreign financial institutions Government securities Liquidity bills of B. C. R. A. Net REPO transactions 11% 10% 11% 16% 19% 55% 54% 54% 51% 51% 2% 2% 2% 2% 2% 33% 34% 33% 32% 29%

258 277 281 272 291

2018 1Q19 2Q19 3Q19 2019

Currenct account Savings account Other Time deposits

LOW COST FUNDING

71%

+13%

28 Corporate Presentation 2019

Strong Capital Position

14.3% 17.1% 17.8% 13.5% 16.4% 17.2%

4Q18 3Q19 4Q19

Capital Ratio Tier I

Minimum Capital Requirement (8%) Additional buffer (+3,5%)

BBVA Purpose

04

BBVA Defined a New Strategy in 2015: To Boost its Transformation

OUR PURPOSE STRATEGIC PRIORITIES

Better client experience Digital sales New business models Optimization of capital allocation Leading efficiency The best team

To bring the age of opportunity to everyone

Customer comes first We think big We are one team

OUR VALUES

31 Corporate Presentation 2019

BBVA Argentina Digital Client Strategy Approach

Client acquisition as a key corporate strategic asset for growth

Since 2017, active clients increased 13% More than 290,000 clients. Healthy NPL ratio With an approach in open market. Payroll acquisition New clients, increasing payroll market share. Loyalty Consistently leading in customer satisfaction indicator

NPS* #1

Successfully acquiring clients Without increasing the number of branches Ahead of curve in digital transformation Driving client acquisition and digital sales

32 Corporate Presentation 2019

2,306 2,468 2,598 41 46 53 0.73 0.74 0.75

2,348 2,515 2,642

2017 2018 2019

Total Retail Total SMEs Total CIB

BBVA Argentina Active Clients

Active clients: holders of at least one active product. An active product is in most cases a product with at least “one movement” in the last 3 months, or a minimum balance. Source: active credit cards and credit card market share based on Visa and Mastercard information.

+13%

MORE active customers

In thousands

Since 2017, active clients increased 13%, more than 290,000

MORE active credit cards INCREASING credit card share

1,909 2,063 2,248

2017 2018 2019

9.4% 10.1% 11.4% 12.6% 12.2% 12.5% 9.8% 10.3% 11.1% 7.6% 7.7% 7.9%

2017 2018 2019

BBAR SAN GAL BMA In thousands

+18%

33 Corporate Presentation 2019

BBVA BMA SUPV GAL

251

• 1

5.43% 183 +5 3.95% 326 +4 7.04% 460

• 9

9.94%

Geographic Structure as of December 2019

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

Total: YoY Chg*: Market Share:

7% 15% 33% 22% 4% 16% 5%

CABA Prov Bs. As Litoral NOA Cuyo Centro Patagonia

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

CABA Prov Bs. As Litoral NOA Cuyo Centro Patagonia

23% 39% 2% 1% 29% 6% 1%

CABA Prov Bs. As Litoral NOA Cuyo Centro Patagonia

32% 37% 10% 4% 5% 7% 6%

CABA Prov Bs. As Litoral NOA Cuyo Centro Patagonia

Successfully acquiring clients without increasing the number of branches Clients per branch increased 12% from 2017 to 2019

34 Corporate Presentation 2019

Ahead of Curve in Digital Transformation Based on Global Strategy

MOBILE ACTIVE CLIENTS MILLION, % GROWTH DIGITAL ACTIVE CLIENTS MILLION, % GROWTH

CUSTOMER PENETRATION RATE, %

66.5%

55.5% 60.0% 37.3% 44.3%

53.8%

Digital customers: number of retail clients that have logged in any of the bank’s digital platforms at least once during each of the last 3 months. Mobile customers: number of retail clients that have logged in the bank’s mobile app at least once during each of the last 3 months. It is a sub-group of digital customers.

+36% +63%

More than half of new clients come through digital media

1.30 1.51 1.76

2017 2018 2019

0.88 1.11 1.43

2017 2018 2019

Time deposits

First private bank to offer retail time deposits with funds from other banks, 100% online.

Payments

We are in the process of implementing NFC technology, by making a pilot trial through employees in February.

Systemic player

Together with Santander, Banco Macro and Banco Galicia, development of a platform that will enable QR universal code payments, grouping all promotional

• ffers that banks have for their clients.

Latest Digital Actions

35 Corporate Presentation 2019

Transformation Driving Digital Sales and Client Acquisition

UNITS PRV

DIGITAL SALES (% OF TOTAL SALES YTD, % OF TRANSACTIONS AND PRV1)

Digital sales: % of sales done through digital channels and ATM over total sales. PRV: Product Relative value, used as a proxy for economic value. Transactions (units) are weighted by a simplified NPV calculated for each product category in order to weight their contribution to the digital sales. Figures have been restated in order to include credit card related financing solutions and FX.

DIGITAL SALES PRV

45.2% 46.8% 55.7% 57.1% 61.9% 78.6%

2017 2018 2019

Digital client acquisition strategy based on a variable-cost selling model, exclusive and attractive offers, and key partners

36 Corporate Presentation 2019

Asset Quality – Change in Allowances Strategy

0.8% 1.3% 1.9% 3.3% 3.6%

1.8% 1.8% 3.1% 4.9% 5.6%

1.6% 1.8% 3.1% 4.4% 4.4%

2016 2017 2018 3Q19 4Q19

NPL as a % of total lending

263% 262% 119% 105% 113% 140% 151% 121% 93% 94% 145% 132% 106% 111% 112%

2016 2017 2018 3Q19 4Q19

Allowances as a % of NPLs

BBVA System Private Banks

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

37 Corporate Presentation 2019

Payroll Acquisition

2017 2018 2019 +18%

MORE payroll customers INCREASING payroll share

8.58% 9.46% 10.53%

2017 2018 2019 +195 bps

Source: Ministerio de Trabajo de la República Argentina; SIPA, as of November 2019.

New clients, increasing payroll market share, sight deposits and cross-sell opportunities

In thousands

Appendix

05

39 Corporate Presentation 2019

Equity Ownership

OWNERSHIP STRUCTURE

SUBSIDIARIES AND EQUITY PARTICIPATIONS

*As of July 1st 2019 the Bank reports the activity of PSA and VWFS on a consolidated basis with BBVA Argentina, the same as it has been done with BBVA Asset Management Argentina S.A. **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) As of October 9th, 50.441 shares have been issued related to the merger by absorption with BBVA Francés Valores S.A., totaling 612,710,079 shares. As of the release of these consolidated financial statements, the increase in capital and the merger by absoprtion are pending registry approval by the I.G.J.

ANSES ByMA* NYSE 6.9% 6.2% 20.3%

66.55%

Grupo BBVA Free Float 26.51%

*Includes 0.07% in LATIBEX

BBVA Asset Management Argentina 100% BBVA Francés Valores** 97% PSA Finance* 50% Volkswagen Financial Services* 51% Rombo Compañía Financiera 40% BBVA Seguros 12.22%

612.7 million shares

40 Corporate Presentation 2019

BBVA Argentina Outstanding Corporate Bond Debt

Series Issue Date Nominal Amount (thousands AR$) Maturity Coupon Coupon Frequency Rating (FixCSR) Class 24 12/27/2017 546,500 12/27/2020 Floating +4.25% (Badlar - Private Banks) Quarterly AAA (Arg) Class 25 11/8/2018 784,334 11/08/2020 Floating + 9.50% (UVA) Quarterly AAA(arg) Class 27 2/28/2019 1,090,000 08/28/2020 Floating +6.25% (Badlar - Private Banks) Quarterly AAA(arg) Class 28 12/12/2019 1,967,150 06/12/2020 Floating + 4% (Badlar Private Banks) Quarterly AAA(arg)

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.

41 Corporate Presentation 2019

Dividends

Year Net Income (millions AR$) Dividends (millions AR$) Total shares (millions) Dividends per share (AR$) Dividends per ADS (AR$) Payout Ratio Payment date 2018 9,705 2,407 612.7 3.93 11.79 25% 05/16/2019 2017 3,878 970 612.7 1.58 4.75 25% 05/09/2018 2016 3,644 911 612.7 1.49 4.46 25% 08/10/2017 2015 3,785 900 536.9 1.68 5.03 24% 07/24/2016 2014 3,204 400 536.9 0.75 2.24 12% 03/18/2016 2013 2,024 29 536.9 0.05 0.16 1% 07/08/2014 2012 1,264

• 536.9

42 Corporate Presentation 2019

BBVA Argentina P&L Breakdown

Income Statement Chg %

In millions $ except EPS and ADS

2019 2018 YoY

Net Interest Income 55,224 26,129 111.4% Net Fee Income 6,629 5,504 20.4% Net income/loss from measurement of financial instruments at fair value 7,970 107 n.m Net loss from write-down of assets at amortized cost and at fair value through OCI (47) (121) 61.2% Foreign exchange and gold gains 8,560 5,307 61.3% Other operating income 9,957 4,153 139.8% Loan loss allowances (8,394) (3,461) (142.5%) Net operating income 79,899 37,618 112.4% Personnel benefits (13,733) (8,961) (53.3%) Adminsitrative expenses (11,678) (7,177) (62.7%) Depreciation and amortization (1,999) (876) (128.2%) Other operating expenses (17,312) (7,653) (126.2%) Operating income 35,177 12,951 171.6% Income from associates 637 781 (18.4%) Net income before income tax 35,814 13,732 160.8% Income tax (4,462) (4,027) (10.8%) Income for the period 31,352 9,705 223.0% Net Income attributable to owners of the Parent 31,008 9,613 222.6% Net income attributable to non-controlling interests 343 92 n.m Total Other Comprehensive Income for the period (OCI) (3,416) (21) n.m Weighted average number of common shares (in thousands) (2) 612,671 612,660 0.0% Basic earnings per share 50.6 15.7 222.6% Earnings per ADS (1) 151.8 47.1 222.6% (1) Each ADS represents three ordinary shares (2) As of October 9th, 50.441 shares have been issued related to the merger by absorption with BBVA Francés Valores S.A., totaling 612,710,079 shares. As of the release of these consolidated financial statements, the increase in capital and the merger

BBVA Argentina consolidated

43 Corporate Presentation 2019

BBVA Argentina Balance Sheet

Balance Sheet

In millions $

4Q19 3Q19 4Q18 QoQ YoY

Assets Cash and Deposits in banks 156,260 94,168 99,106 65.9% 57.7% Cash 46,724 28,259 15,571 65.3% 200.1% Financial institutions and correspondents 109,536 65,909 83,535 66.2% 31.1% B.C.R.A 107,501 59,163 75,504 81.7% 42.4% Other local and foreign financial institutions 2,035 6,746 8,031 (69.8%) (74.7%) Debt securities at fair value through profit or loss 4,130 5,169 7,508 (20.1%) (45.0%) Derivatives 3,047 2,243 591 35.8% 415.6% Repo transactions

• 6,665

12,861 (100.0%) (100.0%) Other financial assets 2,754 6,457 9,648 (57.3%) (71.5%) Loans and other financing 198,341 207,172 181,422 (4.3%) 9.3% Non-financial public sector

• 1
• (100.0%)

N/A B.C.R.A 17

• N/A

N/A Other financial institutions 5,161 2,778 9,584 85.8% (46.1%) Non-financial private sector and residents abroad 193,163 204,393 171,838 (5.5%) 12.4% Other debt securities 45,179 63,440 23,743 (28.8%) 90.3% Financial assets pledged as collateral 5,923 8,302 4,703 (28.7%) 25.9% Current income tax assets 23

• N/A

N/A Investments in equity instruments 2,056 1,875 130 9.7% n.m Investments in associates 968 272 1,752 255.9% (44.7%) Property and equipment 11,507 11,821 9,816 (2.7%) 17.2% Intangible assets 589 641 511 (8.1%) 15.3% Deferred income tax assets 6,188 3,401 194 81.9% n.m Other non-financial assets 3,208 2,391 2,136 34.2% 50.2% Non-current assets held for sale 60 60 493

• (87.8%)

Total Assets 440,233 414,077 354,614 6.3% 24.1%

BBVA ARG consolidated Chg%

44 Corporate Presentation 2019

BBVA Argentina Balance Sheet

Balance Sheet

In millions $

4Q19 3Q19 4Q18 QoQ YoY

Liabilities Deposits 293,988 274,487 259,509 7.1% 13.3% Non-financial public sector 2,938 2,642 1,545 11.2% 90.2% Financial sector 178 314 294 (43.3%) (39.5%) Non-financial private sector and residents abroad 290,872 271,531 257,670 7.1% 12.9% Liabilities at fair value through profit or loss 581 43 692 n.m (16.0%) Derivatives 3,073 4,023 1,377 (23.6%) 123.2% Repo transactions

• 14

N/A (100.0%) Other financial liabilities 28,825 31,609 28,189 (8.8%) 2.3% Financing received from the BCRA and other financial institutions 6,149 8,481 5,528 (27.5%) 11.2% Corporate bonds issued 7,319 8,728 2,474 (16.1%) 195.8% Current income tax liabilities 8,070 5,240 3,676 54.0% 119.5% Subordinated Corporate bons

• N/A

N/A Provisions 9,843 7,657 3,621 28.5% 171.8% Deferred income tax liabilities

• 31

58 (100.0%) (100.0%) Other non-financial liabilities 17,068 15,233 10,894 12.0% 56.7% Total Liabilities 374,916 355,532 316,032 5.5% 18.6% Equity Share Capital 613 613 613

• Non-capitalized contributions

6,745 6,736 6,736 0.1% 0.1% Capital adjustments 313 313 313

• Reserves

28,488 28,488 17,425

• 63.5%

Retained earnings

• 3,856

N/A (100.0%) Other accumulated comprehensive income (3,419) (3,582) (5) 4.6% n.m Income of the period 31,008 23,527 9,614 31.8% 222.5% Equity attributable to owners of the Parent 63,748 56,095 38,552 13.6% 65.4% Equity attributable to non-controlling interests 1,569 2,450 30 (36.0%) n.m Total Equity 65,317 58,545 38,582 11.6% 69.3% Total Liabilities and Equity 440,233 414,077 354,614 6.3% 24.1%

BBVA ARG consolidated Chg%

45 Corporate Presentation 2019

Inflation Adjustments

Income Tax

(in ARS MM)

2019 2018 Income before Income Tax 35.814 13.733 Statutory Income Tax Rate 30% 30% Income Tax 10.744 4.120 Difference in Income Tax (Inflation Adj.) (6.282) (92) Total Income Tax 4.462 4.027 Effective Income Tax Rate 12% 29%

Inflation Adjustment

(in ARS MM) 2019 2018 Income for the period (1) 31.351 9.705 Non-controlling Interests (2) 343 91 Income for the period attributable to: Owners of the parent (3) = (1) - (2) 31.008 9.614 Other Comprehensive Income (4) (3.416) (21) Total Comprehensive Income (5) = (3) + (4) 27.592 9.593 P&L Inflation Adjustment (6)* (23.935) (17.091) Income for the period Inflation Adjusted (1) + (6) 7.416 (7.386) Income for the period attributable to: Owners of the parent Inflation Adjusted (3) + (6) 7.073 (7.477) Total Comprehensive Income Inflation Adjusted (5) + (6) 3.657 (7.498) Equity attributable to owners of the Parent 63.748 38.552 Equity Infaltion Adjustment* 11.148 10.707 Inflation Adjusted Equity 74.896 49.259 * Estimated figures based on BCRA GAAP

Investor Relations Contact

investorelations-arg@bbva.com www.ir.bbva.com.ar