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 September, 2024
Commission File Number: 001-12568
Banco BBVA Argentina S.A.
(Exact name of Registrant as specified in its charter)
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
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
Banco BBVA Argentina S.A. |
Date: |
September 6, 2024 |
|
By: |
/s/ Carmen Morillo Arroyo |
|
|
|
|
Name: |
Carmen Morillo Arroyo |
|
|
|
|
Title: |
Chief Financial Officer |
BANCO BBVA ARGENTINA S.A.
FINANCIAL STATEMENTS FOR THE
FISCAL YEAR ENDED
DECEMBER 31, 2023
Banco BBVA Argentina S.A.
TABLE OF CONTENTS
Financial statements for the fiscal year ended December
31, 2023, comparatively presented.
Consolidated Statement of Financial Position
Consolidated Statement of Income
Consolidated Statement of Other Comprehensive Income
Consolidated Statement of Changes in Shareholders’
Equity
Consolidated Statement of Cash Flows
Notes
Exhibits
Separate Statement of Financial Position
Separate Statement of Income
Separate Statement of Other Comprehensive Income
Separate Statement of Changes in Shareholders’
Equity
Separate Statement of Cash Flows
Notes
Exhibits
Project for the distribution of earnings
Reporting Summary
Audit report issued by the Independent Auditor on
the consolidated financial statements
Audit report issued by the Independent Auditor on
the separate financial statements
Supervisory Committee’s Report
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.)
(Translation of Financial statements originally
issued in Spanish – See Note 54)
|
Notes and Exhibits |
|
12.31.23 |
|
12.31.22 |
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Cash and deposits in banks |
3 and P |
|
1,142,949,870 |
|
922,671,461 |
|
|
|
|
|
|
Cash |
|
|
727,271,193 |
|
365,764,558 |
Financial institutions and correspondents |
|
|
415,678,677 |
|
556,625,853 |
B.C.R.A. |
|
|
359,854,081 |
|
502,637,074 |
Other in the country and abroad |
|
|
55,824,596 |
|
53,988,779 |
Other |
|
|
- |
|
281,050 |
|
|
|
|
|
|
Debt securities at fair value through profit or loss |
4, A and P |
|
226,082,874 |
|
79,470,642 |
|
|
|
|
|
|
Derivative instruments |
5 and P |
|
10,001,900 |
|
7,063,310 |
|
|
|
|
|
|
Repo transactions |
6 and P |
|
1,202,421,795 |
|
163,689,844 |
|
|
|
|
|
|
Other financial assets |
7 |
|
91,113,822 |
|
101,963,644 |
|
|
|
|
|
|
Loans and other financing |
8 |
|
1,975,497,390 |
|
2,233,080,125 |
|
|
|
|
|
|
Non-financial Government sector |
|
|
145,208 |
|
4,356 |
B.C.R.A. |
|
|
- |
|
28,132 |
Other financial institutions |
|
|
15,451,444 |
|
13,177,999 |
Non-financial Private Sector and Residents Abroad |
|
|
1,959,900,738 |
|
2,219,869,638 |
|
|
|
|
|
|
Other debt securities |
9, A and P |
|
757,772,176 |
|
2,008,889,132 |
|
|
|
|
|
|
Financial assets pledged as collateral |
10 and P |
|
261,634,742 |
|
143,854,280 |
|
|
|
|
|
|
Current income tax assets |
11.1 |
|
160,343 |
|
120,536 |
|
|
|
|
|
|
Investments in equity instruments |
12, A and P |
|
5,210,930 |
|
2,922,067 |
|
|
|
|
|
|
Investments in associates |
13 |
|
12,366,232 |
|
10,797,712 |
|
|
|
|
|
|
Property and equipment |
14 and F |
|
298,217,768 |
|
299,274,663 |
|
|
|
|
|
|
Intangible assets |
15 and G |
|
33,137,494 |
|
29,949,642 |
|
|
|
|
|
|
Deferred income tax assets |
11.3 |
|
2,845,813 |
|
4,733,879 |
|
|
|
|
|
|
Other non-financial assets |
16 |
|
104,244,541 |
|
90,750,146 |
|
|
|
|
|
|
Non-current assets held for sale |
17 |
|
852,195 |
|
700,909 |
|
|
|
|
|
|
TOTAL ASSETS |
|
|
6,124,509,885 |
|
6,099,931,992 |
|
|
|
|
|
|
Notes and exhibits are an integral part of these consolidated financial statements. |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.)
(Translation of Financial statements originally
issued in Spanish – See Note 54)
|
Notes and Exhibits |
|
12.31.23 |
|
12.31.22 |
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
18, H and P |
|
3,639,306,660 |
|
4,091,312,436 |
|
|
|
|
|
|
Non-financial Government sector |
|
|
34,033,530 |
|
30,144,496 |
Financial Sector |
|
|
2,573,134 |
|
1,058,807 |
Non-financial Private Sector and Residents Abroad |
|
|
3,602,699,996 |
|
4,060,109,133 |
|
|
|
|
|
|
Liabilities at fair value through profit or loss |
19 |
|
10,330,335 |
|
- |
|
|
|
|
|
|
Derivative instruments |
5 and P |
|
2,145,218 |
|
1,041,154 |
|
|
|
|
|
|
Other financial liabilities |
20 and P |
|
448,258,450 |
|
368,805,430 |
|
|
|
|
|
|
Financing received from the BCRA and other financial institutions |
21 and P |
|
28,189,967 |
|
61,886,118 |
|
|
|
|
|
|
Corporate bonds issued |
22 and P |
|
12,816,710 |
|
595,354 |
|
|
|
|
|
|
Current income tax liabilities |
11.2 |
|
192,166,838 |
|
22,570,939 |
|
|
|
|
|
|
Provisions |
23 and J |
|
20,723,763 |
|
26,997,156 |
|
|
|
|
|
|
Deferred income tax liabilities |
11.3 |
|
23,416,180 |
|
20,837,953 |
|
|
|
|
|
|
Other non-financial liabilities |
24 |
|
323,018,173 |
|
366,501,441 |
|
|
|
|
|
|
TOTAL LIABILITIES |
|
|
4,700,372,294 |
|
4,960,547,981 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Share capital |
26 |
|
612,710 |
|
612,710 |
Non-capitalized contributions |
|
|
6,744,974 |
|
6,744,974 |
Capital adjustments |
|
|
410,521,467 |
|
410,521,467 |
Reserves |
|
|
650,152,538 |
|
544,842,857 |
Retained Earnings |
|
|
- |
|
33,635 |
Other accumulated comprehensive income/(loss) |
|
|
173,595,922 |
|
(23,351,032) |
Income for the period /year |
|
|
164,541,898 |
|
183,153,282 |
Equity attributable to owners of the Parent |
|
|
1,406,169,509 |
|
1,122,557,893 |
Equity attributable to non-controlling interests |
|
|
17,968,082 |
|
16,826,118 |
|
|
|
|
|
|
TOTAL EQUITY |
|
|
1,424,137,591 |
|
1,139,384,011 |
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
|
|
6,124,509,885 |
|
6,099,931,992 |
Notes and exhibits are an integral part of these consolidated financial
statements.
CONSOLIDATED STATEMENT OF INCOME
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2023
AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.)
(Translation of Financial statements originally
issued in Spanish – See Note 54)
|
Notes and Exhibits |
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
|
Interest income |
27 and Q |
|
|
3,183,946,656 |
|
|
1,959,831,229 |
Interest expense |
28 and Q |
|
|
(1,555,015,131) |
|
|
(902,795,501) |
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
1,628,931,525 |
|
|
1,057,035,728 |
|
|
|
|
|
|
|
|
Commission income |
29 and Q |
|
|
254,797,055 |
|
|
253,731,536 |
Commission expense |
30 and Q |
|
|
(115,841,706) |
|
|
(108,171,658) |
|
|
|
|
|
|
|
|
Net commission income |
|
|
|
138,955,349 |
|
|
145,559,878 |
|
|
|
|
|
|
|
|
Net income/(loss) from measurement of financial instruments at fair value through profit or loss |
31 and Q |
|
|
(23,988,470) |
|
|
56,603,987 |
Net income from write-down of assets at amortized cost and at fair value through OCI |
32 |
|
|
40,590,622 |
|
|
902,916 |
Foreign exchange and gold gains |
33 |
|
|
210,110,057 |
|
|
25,152,175 |
Other operating income |
34 |
|
|
67,247,917 |
|
|
65,900,295 |
Loan loss allowance |
|
|
|
(76,381,809) |
|
|
(60,663,174) |
|
|
|
|
|
|
|
|
Net operating income |
|
|
|
1,985,465,191 |
|
|
1,290,491,805 |
|
|
|
|
|
|
|
|
Personnel benefits |
35 |
|
|
(248,101,319) |
|
|
(211,685,720) |
Administrative expenses |
36 |
|
|
(249,464,860) |
|
|
(212,197,280) |
Asset depreciation and impairment |
37 |
|
|
(28,677,320) |
|
|
(34,171,257) |
Other operating expenses |
38 |
|
|
(264,304,110) |
|
|
(191,471,115) |
|
|
|
|
|
|
|
|
Operating income |
|
|
|
1,194,917,582 |
|
|
640,966,433 |
|
|
|
|
|
|
|
|
Income/(Loss) from associates and joint ventures |
|
|
|
1,156,636 |
|
|
(1,452,699) |
Loss on net monetary position |
2.1.5. |
|
|
(894,047,649) |
|
|
(446,887,307) |
|
|
|
|
|
|
|
|
Income before income tax |
|
|
|
302,026,569 |
|
|
192,626,427 |
|
|
|
|
|
|
|
|
Income tax |
11.4 |
|
|
(137,087,439) |
|
|
(12,215,432) |
|
|
|
|
|
|
|
|
Net income for the year |
|
|
|
164,939,130 |
|
|
180,410,995 |
|
|
|
|
|
|
|
|
Net income for the year attributable to: |
|
|
|
|
|
|
|
Owners of the Parent |
|
|
|
164,541,898 |
|
|
183,153,282 |
Non-controlling interests |
|
|
|
397,232 |
|
|
(2,742,287) |
|
|
|
|
|
|
|
|
Notes and exhibits are an integral part of these consolidated financial statements. |
CONSOLIDATED STATEMENT OF INCOME
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2023
AND 2022
EARNINGS PER SHARE
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.)
(Translation of Financial statements originally
issued in Spanish – See Note 54)
Accounts |
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
|
|
|
Net income attributable to owners of the Parent |
|
164,541,898 |
|
183,153,282 |
Net income attributable to owners of the Parent adjusted to reflect the effect of dilution |
|
164,541,898 |
|
183,153,282 |
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
|
|
|
Weighted average of outstanding common shares for the year |
|
612,710,079 |
|
612,710,079 |
Weighted average of outstanding common shares for the year adjusted to reflect the effect of dilution |
|
612,710,079 |
|
612,710,079 |
|
|
|
|
|
Basic earnings per share (stated in pesos) |
|
268.5477 |
|
298.9232 |
Diluted earnings per share (stated in pesos) (1) |
|
268.5477 |
|
298.9232 |
(1) As Banco BBVA Argentina S.A. has not issued financial
instruments with dilution effects on earnings per share, basic earnings and diluted earnings per share are equal.
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2023
AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.)
(Translation of Financial statements originally
issued in Spanish – See Note 54)
|
Note |
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
|
Net income for the year |
|
|
|
164,939,130 |
|
|
180,410,995 |
|
|
|
|
|
|
|
|
Other comprehensive income components to be reclassified to income/(loss) for the year: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share in Other Comprehensive Income from associates and joint ventures at equity method |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income for the year on the Share in OCI from associates and joint ventures at equity method |
|
|
|
- |
|
|
339,486 |
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
339,486 |
|
|
|
|
|
|
|
|
Profit or losses from financial instruments at fair value through OCI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit or losses from financial instruments at fair value through OCI |
|
|
|
332,484,908 |
|
|
(38,803,362) |
Reclassification adjustment for the year |
|
|
|
(34,816,740) |
|
|
(847,700) |
Income tax |
11.4 |
|
|
(101,429,706) |
|
|
11,851,492 |
|
|
|
|
|
|
|
|
|
|
|
|
196,238,462 |
|
|
(27,799,570) |
Other comprehensive income components not to be reclassified to income/(loss) for the year: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income or loss on equity instruments at fair value through OCI (IFRS 9, paragraph 5.7.5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) for the year from equity instruments at fair value through OCI |
|
|
|
1,383,754 |
|
|
(117,926) |
|
|
|
|
|
|
|
|
|
|
|
|
1,383,754 |
|
|
(117,926) |
|
|
|
|
|
|
|
|
Total Other Comprehensive Income/(loss) for the year |
|
|
|
197,622,216 |
|
|
(27,578,010) |
|
|
|
|
|
|
|
|
Total Comprehensive Income |
|
|
|
362,561,346 |
|
|
152,832,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Comprehensive Income: |
|
|
|
|
|
|
|
Attributable to owners of the Parent |
|
|
|
361,488,852 |
|
|
155,575,311 |
Attributable to non-controlling interests |
|
|
|
1,072,494 |
|
|
(2,742,326) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes and exhibits are an integral part of these consolidated financial statements. |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’
EQUITY
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.)
(Translation of Financial statements originally
issued in Spanish – See Note 54)
|
2023 |
|
Share Capital |
|
Non-capitalized contributions |
|
|
|
Other Comprehensive Income |
|
Reserves |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding shares |
|
Share premium |
|
|
|
Income/(loss) on financial instruments at fair value through OCI |
|
|
|
|
|
Total equity attributable to controlling interests |
|
Total equity attributable to non-controlling interests |
|
Total |
|
|
|
Adjustments to equity |
|
|
|
|
Retained Earnings |
|
|
|
Transactions |
|
|
|
|
Legal |
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restated balances at the beginning of the year |
612,710 |
|
6,744,974 |
|
410,521,467 |
|
(23,351,032) |
|
230,132,048 |
314,710,809 |
183,186,917 |
|
1,122,557,893 |
|
16,826,118 |
|
1,139,384,011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Net income for the year |
- |
|
- |
|
- |
|
- |
|
- |
- |
164,541,898 |
|
164,541,898 |
|
397,232 |
|
164,939,130 |
- Other comprehensive loss for the year |
- |
|
- |
|
- |
|
196,946,954 |
|
- |
- |
- |
|
196,946,954 |
|
675,262 |
|
197,622,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Distribution of Unappropriated Retained Earnings as per Shareholders’ Resolution dated April 28, 2023 (Note 43 to the consolidated financial statements): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal Reserve |
- |
|
- |
|
- |
|
- |
|
36,637,383 |
- |
(36,637,383) |
|
- |
|
- |
|
- |
Other |
- |
|
- |
|
- |
|
- |
|
- |
146,549,534 |
(146,549,534) |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Distribution of dividends, as approved by the Shareholders’ Meeting on April 28, the B.C.R.A. on May 31, and the Board of Directors’ Meeting held on June 7, 2023 (Note 43): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends in kind and in cash(1) |
- |
|
- |
|
- |
|
- |
|
- |
(77,877,236) |
- |
|
(77,877,236) |
|
- |
|
(77,877,236) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Capital increase of subsidiary (Note 2.2.) |
- |
|
- |
|
- |
|
- |
|
- |
- |
- |
|
- |
|
69,470 |
|
69,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at fiscal year end |
612,710 |
|
6,744,974 |
|
410,521,467 |
|
173,595,922 |
|
266,769,431 |
383,383,107 |
164,541,898 |
|
1,406,169,509 |
|
17,968,082 |
|
1,424,137,591 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents $ 58.05 (in nominal values) per share |
Notes and exhibits are an integral part of these consolidated financial
statements.
|
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’
EQUITY
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.)
(Translation of Financial statements originally
issued in Spanish – See Note 54)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
|
Share Capital |
|
Non-capitalized contributions |
|
|
|
Other Comprehensive Income |
|
Reserves |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding shares |
|
Share premium |
|
|
|
Income/(loss) on financial instruments at fair value through OCI |
Other |
|
|
|
|
|
Total equity attributable to controlling interests |
|
Total equity attributable to non-controlling interests |
|
Total |
|
|
|
|
|
|
|
|
|
Retained Earnings |
|
|
|
|
|
|
|
Adjustments to equity |
|
|
|
|
|
|
|
Transactions |
|
|
|
|
|
Legal |
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restated balances at the beginning of the year |
|
612,710 |
|
6,744,974 |
|
410,521,467 |
|
4,566,425 |
(339,486) |
|
206,267,829 |
219,253,933 |
119,321,095 |
|
966,948,947 |
|
19,450,258 |
|
986,399,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of the implementation of the financial reporting framework established
by the BCRA - IFRS 9, paragraph 5.5 for Related Companies
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
33,635 |
|
33,635 |
|
118,186 |
|
151,821 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted balance at the beginning of the year |
|
612,710 |
|
6,744,974 |
|
410,521,467 |
|
4,566,425 |
(339,486) |
|
206,267,829 |
219,253,933 |
119,354,730 |
|
966,982,582 |
|
19,568,444 |
|
986,551,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Net income for the year |
|
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
183,153,282 |
|
183,153,282 |
|
(2,742,287) |
|
180,410,995 |
- Other comprehensive loss for the year |
|
- |
|
- |
|
- |
|
(27,917,457) |
339,486 |
|
- |
- |
- |
|
(27,577,971) |
|
(39) |
|
(27,578,010) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Distribution of Unappropriated Retained Earnings as per Shareholders' Resolution dated April 29, 2022 (Note 43): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal Reserve |
|
- |
|
- |
|
- |
|
- |
- |
|
23,864,219 |
- |
(23,864,219) |
|
- |
|
- |
|
- |
Other |
|
|
|
|
|
|
|
|
|
|
|
95,456,876 |
(95,456,876) |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at fiscal year end |
|
612,710 |
|
6,744,974 |
|
410,521,467 |
|
(23,351,032) |
- |
|
230,132,048 |
314,710,809 |
183,186,917 |
|
1,122,557,893 |
|
16,826,118 |
|
1,139,384,011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes and exhibits are an integral part of these consolidated financial statements. |
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2023
AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.)
(Translation of Financial statements originally
issued in Spanish – See Note 54)
Accounts |
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
Income before income tax |
|
302,026,569 |
|
192,626,427 |
|
|
|
|
|
Adjustment for total monetary income for the year |
|
894,047,649 |
|
446,887,307 |
|
|
|
|
|
Adjustments to obtain cash flows from operating activities: |
|
(429,339,412) |
|
102,098,094 |
Depreciation and amortization |
|
28,677,320 |
|
34,171,257 |
Loan loss allowance |
|
76,381,809 |
|
60,663,174 |
Effect of foreign exchange changes on cash and cash equivalents |
|
(572,860,171) |
|
(3,774,581) |
Loss for the sale of Prisma Medios de Pagos S.A. |
|
- |
|
(13,666,592) |
Other adjustments |
|
38,461,630 |
|
24,704,836 |
|
|
|
|
|
Net increases from operating assets: |
|
(4,724,868,269) |
|
(3,328,477,060) |
Debt securities at fair value through profit or loss |
|
(286,085,190) |
|
(109,888,154) |
Derivative instruments |
|
(14,246,980) |
|
5,408,418 |
Repo transactions |
|
(1,531,744,781) |
|
465,369,700 |
Loans and other financing |
|
(2,155,062,878) |
|
(1,399,171,773) |
Non-financial Government sector |
|
(494,923) |
|
(4,135) |
Other financial institutions |
|
(16,420,498) |
|
(1,859,058) |
Non-financial Private Sector and Residents Abroad |
|
(2,138,147,457) |
|
(1,397,308,580) |
Other debt securities |
|
(204,867,624) |
|
(2,111,071,098) |
Financial assets pledged as collateral |
|
(330,539,294) |
|
(108,760,053) |
Investments in equity instruments |
|
(4,534,830) |
|
12,136,633 |
Other assets |
|
(197,786,692) |
|
(82,500,733) |
|
|
|
|
|
Net decreases from operating liabilities: |
|
4,566,772,438 |
|
2,943,986,201 |
Deposits |
|
3,655,644,713 |
|
2,451,424,313 |
Non-financial Government sector |
|
33,598,935 |
|
(7,747,686) |
Financial sector |
|
3,420,271 |
|
680,278 |
Non-financial Private Sector and Residents Abroad |
|
3,618,625,507 |
|
2,458,491,721 |
Liabilities at fair value through profit or loss |
|
10,591,720 |
|
130,261 |
Derivative instruments |
|
3,810,073 |
|
505,517 |
Repo transactions |
|
36,596 |
|
- |
Other liabilities |
|
896,689,336 |
|
491,926,110 |
|
|
|
|
|
Income tax paid |
|
(7,061,720) |
|
(5,060,942) |
|
|
|
|
|
Total cash flows generated by operating activities |
|
601,577,255 |
|
352,060,027 |
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2023
AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.)
(Translation of Financial statements originally
issued in Spanish – See Note 54)
Accounts |
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
Payments: |
|
(44,088,144) |
|
(88,096,067) |
Purchase of property and equipment, intangible assets and other assets |
|
(42,077,773) |
|
(51,101,699) |
Other payments related to investing activities |
|
(2,010,371) |
|
(36,994,368) |
|
|
|
|
|
Collections: |
|
1,163,486 |
|
3,540,447 |
Other collections related to investing activities |
|
1,163,486 |
|
3,540,447 |
|
|
|
|
|
Total cash flows used in investing activities |
|
(42,924,658) |
|
(84,555,620) |
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
Payments: |
|
(41,601,749) |
|
(28,212,668) |
Dividends |
|
(278,328) |
|
(8,024,881) |
Non-subordinated corporate bonds |
|
(565,420) |
|
(2,327,802) |
Argentine Central Bank (BCRA) |
|
(156,045) |
|
- |
Financing from local financial institutions |
|
(34,374,350) |
|
(11,186,369) |
Leases |
|
(6,227,606) |
|
(6,673,616) |
|
|
|
|
|
Collections: |
|
14,988,113 |
|
1,748,778 |
Non-subordinated corporate bonds |
|
14,153,869 |
|
- |
Argentine Central Bank (BCRA) |
|
- |
|
31,633 |
Other collections related to financing activities |
|
834,244 |
|
1,717,145 |
|
|
|
|
|
Total cash flows used in financing activities |
|
(26,613,636) |
|
(26,463,890) |
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
572,860,171 |
|
3,774,581 |
Effect of net monetary income/(loss) of cash and cash equivalents |
|
(884,620,723) |
|
(646,610,824) |
|
|
|
|
|
Total changes in cash flows |
|
220,278,409 |
|
(401,795,726) |
Restated cash and cash equivalents at the beginning of the year (Note 3) |
|
922,671,461 |
|
1,324,467,187 |
Cash and cash equivalents at fiscal year-end (Note 3) |
|
1,142,949,870 |
|
922,671,461 |
|
|
|
|
|
|
|
|
|
|
Notes and exhibits are an integral part of these consolidated financial statements. |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2023, COMPARATIVE WITH
THE PREVIOUS FISCAL YEAR
(Amounts stated in thousands
of Argentine pesos in constant currency – Note 2.1.5.)
(Translation of Financial statements originally
issued in Spanish – See Note 54)
1. General Information
1.1. Information on Banco BBVA Argentina S.A.
Banco BBVA Argentina S.A. (hereinafter, either
“BBVA Argentina”, the “Entity” or the “Bank”) is a corporation (“sociedad anónima”)
incorporated under the laws of Argentina, operating as a universal bank with a network of 243 national branches.
Since December 1996, BBVA Argentina is part of
the global strategy of Banco Bilbao Vizcaya Argentaria S.A. (hereinafter, either “BBVA” or the “Parent”), which
directly and indirectly controls the Entity, by holding 66.55% of the share capital as of December 31, 2023.
These consolidated financial statements include
the Entity and its subsidiaries (collectively referred to as the “Group”). Basis of consolidation is described in Note 2.2.
Part of the Entity's capital stock is publicly traded
and has been registered with the Buenos Aires Stock Exchange, the New York Stock Exchange, and the Madrid Stock Exchange.
1.2 Evolution of the macroeconomic
situation and the financial and capital systems
In recent years, the Argentine financial market
has observed a prolonged period of volatility in the market values of public and private financial instruments, including a high level
of country risk, an increase in the official exchange rate between the Argentine peso and the US dollar, an increase in interest rates,
and a significant acceleration in the rate of inflation (see note 2.1.5. Measuring Unit).
Particularly, with regard to the price of the US
dollar, since the end of 2019 the gap between the official price of the US dollar, used mainly for foreign trade, and alternative market
values began to widen significantly, having reached maximum peaks close to 200%. As of the date of issuance of these financial statements,
the aforementioned gap amounts to approximately 26%.
With regard to the administration of the national
public debt, a process of restructuring has been observed, including various voluntary swaps and agreements reached regarding debts with
the so-called Paris Club and the International Monetary Fund.
In this context, on December 10, 2023, the new authorities
of the Argentine national government took office, which issued a series of emergency measures. Among the main objectives is pursued, among
other relevant issues, a regulatory relaxation in economic matters, reduction of the fiscal deficit mainly through a reduction in spending,
including the reduction of different types of subsidies. Likewise, there was a devaluation of the Argentine peso of close to 55% against
the U.S. dollar, which has generated an acceleration of the inflationary rhythm, with year-on-year inflation measured from the national
CPI published by INDEC of 254.2% as of the date of issuance of these financial statements.
The comprehensive program pursued by the new national
government includes reforms in the economy, justice, foreign relations, infrastructure and others. On December 20, 2023, through Decree
of Necessity and Urgency No. 70/2023, a significant number of reforms were established, on which different actors filed various injunctions
or requests for unconstitutionality before the courts to stop their application.
In addition, the national and international macroeconomic
context generates a certain degree of uncertainty regarding its future evolution with regard to the level of economic recovery at the
global level.
In view of the above, the Entity's Management permanently
monitors the evolution of the abovementioned situations in the international and local markets, in order to determine the possible actions
to be taken and identify possible impacts on its equity and financial position, which may require disclosure in the financial statements
of future periods.
2. Basis for the preparation of these financial
statements and applicable accounting standards
2.1. Presentation basis
2.1.1. Applicable Accounting Standards
These consolidated financial statements of the Bank
were prepared in accordance with the financial reporting framework set forth by the BCRA (Communication “A” 6114 as supplemented
by the BCRA). Except for the exceptions established by the BCRA which are explained in the following paragraph, such framework is based
on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and adopted by
the Argentine Federation of Professionals Councils in Economic Sciences (FACPCE, for its acronym in Spanish). The abovementioned international
standards include the IFRS, the International Accounting Standards (IAS) and the interpretations developed by the IFRS Interpretations
Committee (IFRIC) or former IFRIC (SIC).
Out of the exceptions set forth by the BCRA to the application of current
IFRS, the following affect the preparation of these consolidated financial statements:
| a) | Within the framework of the convergence process
to IFRS established by Communication “A” 6114, as amended and supplemented, the BCRA provided that for fiscal years starting
on or after January 1, 2020, financial institutions defined as “Group A” according to BCRA regulations, as such is the case
of the Entity, are required to start to apply paragraph 5.5 “Impairment” of IFRS 9 “Financial Instruments” (paragraphs
B5.5.1 through B5.5.55) except for exposures to the public sector, considering the exclusion set forth by Communication “A”
6847. |
Had the abovementioned paragraph 5.5. “Impairment”
been applied in full, according to a global estimate made by the Entity, as of December 31, 2023 and 2022, its shareholders’ equity
would have been reduced by 9,360,898 and 13,958,955, respectively.
| b) | In March 2022, the transfer of the equity instruments
corresponding to the remaining interest in Prisma Medios de Pago S.A. was made, which instruments were measured at fair value as set forth
in Memorandum dated April 29, 2019 and March 22, 2021 received by the BCRA, and the income (loss) from their sale was recorded in the
quarter ended March 31, 2022. Had the IFRS been applied in order to determine the fair value above mentioned, the income (loss) for the
fiscal year ended December 31, 2022 would have changed. However, this situation did not generate differences as regards the shareholders’
equity value as of December 31, 2022. |
Except for what was mentioned in the previous paragraphs,
the accounting policies applied by the Entity comply with the IFRS that have been currently approved and are applicable in the preparation
of these consolidated financial statements in accordance with the IFRS as adopted by the BCRA as per Communication “A” 7899.
In general, the BCRA does not allow the early application of any IFRS, unless otherwise specified.
These financial statements were approved by the
Board of Directors of Banco BBVA Argentina S.A. on March 5, 2024.
2.1.2. Figures stated in thousands of pesos
These consolidated financial statements expose figures
stated in thousands of Argentine pesos in terms of purchasing power as of December 31, 2023 and are rounded to the nearest amount in thousands
of pesos.
The Entity and its subsidiaries consider the Argentine
peso as their functional and presentation currency.
2.1.3. Presentation of Statement of Financial
Position
The Entity presents its Statement of Financial Position
in order of liquidity, according to the model set forth in Communication “A” 6324 of the BCRA.
Financial assets and financial liabilities are generally
reported in gross figures in the Statement of Financial Position. They are offset and reported on a net basis only if there is a legal
and unconditional right to offset them and Management has the intention to settle them on a net basis or to realize assets and settle
liabilities simultaneously.
These consolidated financial statements were prepared
on the basis of historical amounts, except for certain species which were valued at Fair value through Other Comprehensive Income (OCI)
or at Fair Value through Profit or Loss. In addition, in the case of derivatives, both assets and liabilities were valued at Fair Value
through profit or loss.
2.1.4. Comparative information
The Consolidated Statements of Financial Position,
Income, Other Comprehensive Income, Changes in Shareholders’ Equity and Cash Flows and the related Notes as of December 31, 2023
are presented comparatively with the previous fiscal year end.
The figures of comparative information have been
restated in order to consider the changes in the general purchasing power of the currency and, as a result, are stated in the measuring
unit current as of the end of the reporting year (see “Measuring unit” below).
2.1.5. Measuring Unit
These consolidated condensed interim financial statements
as of December 31, 2023 have been restated to be expressed in the purchasing power currency as of that date, as set forth in IAS 29 “Financial
Reporting in Hyperinflationary Economies” and considering, in addition, the particular rules issued by the BCRA in Communications
“A” 6651, 6849, as amended and supplemented, which established that such method should be applied to financial statements
for fiscal years starting on, and after January 1, 2020 and defined December 31, 2018 as transition date.
IFRS requires that the financial statements of an
entity whose functional currency is that of a hyperinflationary economy be restated in constant currency. In order to achieve uniformity
in the identification of such an economic environment, IAS 29 establishes (i) certain non-exclusive qualitative indicators consisting
of analyzing the behavior of the population, prices, interest rates and salaries in view of the evolution of price indexes and the loss
of purchasing power of the currency, and (ii) as a quantitative characteristic, which is the condition most commonly considered in practice,
to verify whether the cumulative inflation rate in three years approaches or exceeds 100%. Due to several macroeconomic factors, three-year
inflation was above this figure, while the national government's targets and other available projections indicate that this trend will
not be reversed in the short term.
Such restatement should be made as if the economy
has always been hyperinflationary, using a general price index that reflects the changes in the purchasing power of currency. In order
to make such restatements, a series of indexes prepared and published on a monthly basis by the Argentine Federation of Professional
Councils of Economic Sciences (“FACPCE”), which combines the consumer price index (CPI) as from January 2017 (base month:
December 2016) with the domestic wholesale price index (IPIM, as per its Spanish acronym) published by INDEC until such date, computing
for November and December 2015, for which the INDEC did not published any information on the variation of the IPIIM, the variation of
the CPI in the City of Buenos Aires.
Considering the index referred to above, inflation
for the fiscal years ended December 31, 2023 and 2022 was 211.41% and 94.79%, respectively.
Below is a description of the main impacts of applying
IAS 29 and the restatement process of financial statements set forth by Communication “A” 6849, as supplemented, of the BCRA:
| a) | Description of the main aspects of the restatement
process of the statement of financial position: |
| i. | Monetary items (those with a fixed nominal
value in local currency) are not restated, as they are already expressed in the measuring unit current as of the end of the reporting
year. In an inflationary period, holding monetary assets generates a loss of purchasing power and holding monetary liabilities generates
a gain in purchasing power, provided that such items are not subject to an adjustment mechanism that may offset these effects to some
extent. Gain or loss on net monetary position is included in income (loss) for the reporting year. |
| ii. | Assets and liabilities subject to adjustments
pursuant to specific agreements are adjusted according to such agreements. |
| iii. | Non-monetary items measured at their current
values at the end of the reporting year are not restated for their presentation in the statement of financial position, but the adjustment
process must be completed in order to determine in terms of constant measuring unit, the gain or loss generated for holding those non-monetary
items. |
| iv. | Non-monetary items measured at historical cost
or at a value current as of a date prior to the end of the reporting year are restated at indexes that reflect the variation occurred
in the general price index as from the date of acquisition or restatement until the closing date, and then the restated amounts of said
assets are compared with the relevant recoverable values. Charges to income or loss for the year of depreciation of property and equipment
and amortization of intangible assets, as well as any other consumption of non-monetary assets are determined based on the new restated
amounts. |
| v. | The restatement of non-monetary assets in terms
of a measuring unit current at the end of the reporting year without an equivalent adjustment for tax purposes results in a taxable temporary
difference and the recognition of deferred tax liabilities, whose balancing entry is recognized in income or loss for the year. |
| b) | Description of the main aspects of the restatement
process of the statements of income and other comprehensive income: |
| i. | Expenses and income are restated as from the
date of their booking, except those income or loss items that reflect or include in their determination the consumption of assets in purchasing
power currency of a date prior to the booking of the consumption, which are restated taking as basis the date of origination of the asset
with which the item is related; and also except for income or loss arising from comparing two measurements expressed in purchasing power
currency of different dates, for which it is necessary to identify the amounts compared, restate them separately, and make the comparison
again, but with the amounts already restated. |
| ii. | Gain or loss on net monetary position will
be classified according to the item that originated it, and is presented in a separate line reflecting the effect of inflation on monetary
items. |
| c) | Description of the main aspects of the restatement
process of the statement of changes in shareholders’ equity: |
| i. | As of the transition date (December 31, 2018),
the Entity has applied the following procedures: |
| a) | Equity items, except those stated below, are
restated as from the date on which they were subscribed for or paid-in, as set forth in Communication “A” 6849 for each particular
item. |
| b) | Reserves, including the reserve for first time
application of IFRS, were maintained at their nominal value as of the transition date (non-restated legal amount). |
| c) | Restated retained earnings are determined according
to the difference between restated net assets as of the transition date and the rest of the components of initial equity restated as described
above. |
| d) | Balances of other accumulated comprehensive
income were restated as of the transition date. |
| ii. | After the restatement as of the transition
date stated in (i) above, all the shareholders’ equity components are restated by applying the general price index from the beginning
of the fiscal year and each variation of those components is restated from the date of contribution or from the moment such variation
occurred by other means, restating the balances of other accumulated comprehensive income according to the items that give rise to it.
Under BCRA requirements, the restatement of share capital and additional paid-in capital is disclosed under “Inflation adjustment
to the share capital” account. |
| d) | Description of the main aspects of the restatement
process of the statement of cash flows: |
| i. | All items are restated in terms of the measuring
unit current as of the end of the reporting year. |
| ii. | Monetary gain or loss on the components of
cash and cash equivalents are disclosed in the statement of cash flows after operating, investing and financing activities, in a separate
line and independent from them, under “Gain/loss on net monetary position of cash and cash equivalents”. |
2.2. Basis of consolidation
The consolidated financial statements comprise the
Entity’s and its subsidiaries’ financial statements (the “Group”) as of December 31, 2023 and 2022.
Subsidiaries are all entities controlled by the
Bank. The Bank controls an entity when it is exposed to, or has rights to, variable returns from its continued involvement with the entity
and has the ability to manage the operating and financial policies of that entity, in order to affect those returns.
This is generally observed in the case of an ownership
interest representing more than 50% of its shares entitled to vote.
However, under particular circumstances, the Entity
may exercise control with an ownership interest below 50% or may not exercise control even with an ownership interest above 50% in the
shares of an investee.
When assessing if an Entity has power over an investee
and therefore, whether it controls the variability of its yields, the Entity considers all the relevant events and circumstances, including:
| – | The purpose and design of the investee. |
| – | The relevant activities, the decision-making process on these activities
and whether the Entity and its subsidiaries can manage those activities. |
| – | Contractual agreements such as call options, put options and settlement
rights. |
| – | If the Entity and its subsidiaries are exposed to, or entitled to, variable
yields arising from their interest in the investee, and are empowered to affect their variability. |
Subsidiaries are fully consolidated as from the
date on which effective control thereof is transferred to the Entity and they are no longer consolidated as from the date on which such
control ceases. These consolidated financial statements include the Entity’s and its subsidiaries’ assets, liabilities, profit
or loss and each component of other comprehensive income. Transactions among consolidated entities are fully eliminated.
Any change in the ownership interest in a subsidiary,
without loss of control, is booked as an equity transaction. Conversely, if the Entity loses control over a subsidiary, it derecognizes
the related assets (including goodwill), liabilities, non-controlling interest and other equity components, while any resulting gain or
loss is recognized in profit or loss, and any retained investment is recognized at fair value at the date of loss of control.
The financial statements of subsidiaries have been
prepared as of the same date and for the same accounting periods as those of the Entity, using the related accounting policies consistently
with those applied by the Entity. If necessary, the relevant adjustments are made to the financial statements of subsidiaries so that
the accounting policies used by the Group are uniform.
Besides, non-controlling interests represent the
portion of income or loss and shareholders’ equity that does not belong, either directly or indirectly, to the Entity. Non-controlling
interests are exposed in these financial statements in a separate line in the Statements of Financial Position, of Income, Other Comprehensive
Income and Changes in Shareholders’ Equity.
As of December 31, 2023 and 2022, the Entity has
consolidated its financial statements with the financial statements of the following companies:
Subsidiaries |
Registered Office |
Province |
Country |
Main Business Activity |
Volkswagen Financial Services Cía. Financiera S.A. |
Av. Córdoba 111, 30th Floor |
City of Buenos Aires |
Argentina |
Financing |
PSA Finance Arg. Cía. Financiera S.A. |
Carlos María Della Paolera 265, 22nd Floor |
City of Buenos Aires |
Argentina |
Financing |
Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (undergoing liquidation proceedings) (1) |
Av. Córdoba 111, 22nd Floor |
City of Buenos Aires |
Argentina |
Retirement and Pension Fund Manager |
BBVA Asset Management Argentina S.A.U. Sociedad Gerente de Fondos Comunes de Inversión |
Av. Córdoba 111, 30th Floor |
City of Buenos Aires |
Argentina |
Mutual Funds Manager |
| (1) | Consolidar Administradora de Fondos de Jubilaciones
y Pensiones S.A. (undergoing liquidation proceedings) “Consolidar A.F.J.P. S.A. (undergoing liquidation proceedings)”:
a corporation incorporated under the laws of Argentina undergoing liquidation proceedings. On December 4, 2008, Law No. 26425 was enacted,
providing for the elimination and replacement of the capitalization regime that was part of the Integrated Retirement and Pension System,
with a single pay-as-you go system named the Argentine Integrated Retirement and Pensions System (SIPA). Consequently, Consolidar A.F.J.P.
S.A. ceased to manage the resources that were part of the individual capitalization accounts of affiliates and beneficiaries of the capitalization
regime of the Integrated Retirement and Pension System, which were transferred to the Guarantee Fund for the Sustainability of the Argentine
Retirement and Pension Regime as they were already invested, and the Argentine Social Security Office (ANSES) is now the sole and exclusive
owner of those assets and rights. Likewise, on October 29, 2009, the ANSES issued Resolution No. 290/2009, whereby retirement and pension
fund managers interested in reconverting their corporate purpose to manage the funds for voluntary contributions and deposits held by
participants in their capitalization accounts had 30 business days to express their intention to that end. On December 28, 2009, based
on the foregoing and taking into consideration that it is impossible for Consolidar A.F.J.P. S.A. to comply with the corporate purpose
for which it was incorporated, it was resolved, at a Unanimous General and Extraordinary Shareholders’ Meeting to approve the dissolution
and subsequent liquidation of that company effective as of December 31, 2009. |
On December 7, 2010, Consolidar A.F.J.P. S.A. (undergoing
liquidation proceedings) filed a lawsuit for damages against the Argentine government under case No. 40.437/2010. The lawsuit was ratified
by BBVA Banco Francés in its capacity as the Company’s majority shareholder. On July 1, 2021, a decision rejecting the claim
was issued. On August 9, 2022, Room I of the Federal Court of Appeals in Contentious and Administrative Matters ratified the trial court
decision. On August 25, 2022, a federal extraordinary appeal was filed against the abovementioned resolution, which was partially accepted
in regard to the federal issue at stake and rejected the request concerning the grounds of arbitrariness through the court decision dated
September 15, 2022. Considering the partial rejection, an appeal was filed with the Argentine Supreme Court of Justice on September 21,
2022. As of the date of issuance of the accompanying financial statements, neither the outcome of the legal process referred to nor the
final assessment of the case by the Argentine Supreme Court of Justice can be estimated. Likewise, in the hypothetical event that in the
event of a rejection of the claim, all or part of the costs were imposed on Consolidar AFJP S.A. (in liquidation) and that the assets
of said entity were insufficient to support them, the Bank would face such expenses, reserving the right to repeat the proportional part
corresponding to the remaining shareholder.
As of December 31, 2023 and 2022, the Entity’s
interest in consolidated companies is as follows:
Subsidiaries |
Shares |
Interest held by the Company |
Non-controlling interest |
Type |
Number |
Total share capital |
Votes |
Total share capital |
Votes |
Volkswagen Financial Services Cía. Financiera S.A. |
Common |
897,000,000 |
51.00 % |
51.00 % |
49.00 % |
49.00 % |
PSA Finance Arg. Cía. Financiera S.A. (1) |
Common |
52,178 |
50.00 % |
50.00 % |
50.00 % |
50.00 % |
Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (undergoing liquidation proceedings) (2) |
Common |
115,738,503 |
53.89 % |
53.89 % |
46.11 % |
46.11 % |
BBVA Asset Management Argentina S.A.U. Sociedad Gerente de Fondos Comunes de Inversión |
Common |
242,524 |
100.00 % |
100.00 % |
- % |
- % |
(1) According to the Shareholders'
Agreement, the Bank controls the entity because it is exposed to, or entitled to, variable yields due to its continued involvement in
the entity and has the capacity to manage the activities relevant to affect those returns, such as financial and risk management activities,
among others.
(2) On November 28, 2023,
a contribution in cash was made for 120,000 (150,605 in restated values). The Bank subscribed 64,667 (81,135 in restated values) and BBVA
subscribed 55,333 (69,470 in restated values).
The Board of Directors of Banco BBVA Argentina S.A.
considers that there are no other companies or structured entities that should be included in the consolidated financial statements as
of December 31, 2023.
Trusts
The Group acts as a trustee for financial, management
and guarantee trusts (see Note 49). Upon determining if the Group controls the trusts, the Group has analyzed the existence of control,
under the terms of IFRS 10. Consequently, how power is configured on the relevant activities of the vehicle, the impact of changes in
returns over those Structured Entities on the Group, and the relation of both have been evaluated on a case-by-case basis. In all cases,
it has been concluded that the Group acts as an agent and therefore does not consolidate those trusts.
Mutual funds
The Group acts as fund manager in various mutual
funds (see Note 50). To determine whether the Group controls a mutual fund, the aggregate economic interest of the Group in such mutual
fund (comprising any carried interests and expected management fees) is usually assessed, and it is considered that investors have no
right to remove the fund manager without cause. The Group has concluded that it has no control over any of these mutual funds.
2.3. Significant accounting policies
These consolidated financial statements as of December
31, 2023 have been prepared in accordance with the financial reporting framework set forth by the BCRA mentioned in Note 2.1.1 “Applied
accounting policies”.
In preparing these consolidated financial statements,
in addition to what is explained in Notes 2.1.5 “Measuring Unit" and 2.5 "Regulatory changes made this year", the
Entity has consistently applied the basis of presentation and consolidation, significant accounting policies and judgments, estimates
and significant accounting assumptions described in the fiscal years presented in these consolidated financial statements, except as indicated
in Note 2.5.
2.3.1. Going concern
The Entity's Management conducted an assessment
of its ability to continue as a going concern and concluded that it has the resources to continue in business for the foreseeable future.
Furthermore, Management is not aware of any material uncertainties that may cast doubt on the Entity's ability to continue as a going
concern. Therefore, these consolidated financial statements have been prepared on a going concern basis.
2.3.2. Foreign currency
Transactions in foreign currencies are translated
into the respective functional currency of Group entities at the spot exchange rates published by the BCRA at the date of the transactions.
Monetary assets and liabilities denominated in
foreign currencies are translated into the functional currency at the spot exchange rate at fiscal year-end.
Non-monetary assets and liabilities that are measured
at fair value in a foreign currency are translated into the functional currency at the spot exchange rate at the date on which the fair
value is determined. Non-monetary items that are measured based on historical cost in a foreign currency are translated using the spot
exchange rate at the date of the transaction.
Exchange rate differences are recognized in the
Consolidated Statement of Income in the line “Foreign exchange and gold gains/ (losses)”.
2.3.3. Cash and deposits in banks
The item “Cash and cash equivalents”
includes cash and unrestricted balances kept with the BCRA and on-demand accounts held at local and foreign financial institutions.
Cash and cash equivalents are booked at amortized
cost in the Consolidated Statement of Financial Position.
2.3.4. Financial assets and liabilities
a) Recognition
The Group initially recognizes loans, deposits,
debt securities issued and liabilities at the date of origination. All other financial instruments (including ordinary purchases and sales
of financial assets) are recognized on the date of negotiation, that is to say, the date when the Group becomes part of the instrument’s
contractual provisions.
The Group recognizes purchases of financial instruments
with the commitment of non-optional repurchase at a certain price (repos) as a financing granted in the line “Repo transactions”
in the Consolidated Statement of Financial Position. The difference between the purchase and sale prices of those instruments is recorded
as interest accrued during the term of the transactions using the effective interest method.
Financial assets and liabilities are initially
recognized at fair value. Instruments not measured at fair value through profit or loss are recognized at fair value plus (in the case
of assets) or less (in the case of liabilities) the transaction costs directly attributable to the acquisition of the asset or the issuance
of the liability.
The transaction price is usually the best evidence
of fair value at initial recognition.
However, if the Group determines that the fair
value at initial recognition is different from the consideration received or paid, when the level of the fair value hierarchy is 1 or
2, the financial instrument is initially recognized at fair value and the difference is recognized in profit or loss. If the level of
the fair value hierarchy at initial recognition is 3, the difference between the fair value and the consideration is deferred in the term
of the instrument. The Group will recognize such deferred gain or loss only to the extent that it arises from a change in a factor (including
time) that market participants would take into account in pricing the asset or liability.
b) Classification of financial assets
On initial recognition, financial assets are classified
and measured at amortized cost, fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVPL).
A financial asset is measured at amortized cost
if it meets both of the following conditions:
| – | the asset is held within a business model whose
objective is to hold assets to collect contractual cash flows, and |
| – | The contractual terms of the financial asset
give rise to cash flows that are “solely payments of principal and interest.” |
A financial asset is measured at fair value through
OCI if it meets both of the following conditions:
| – | the asset is held within a business model whose
objective is achieved by both collecting contractual cash flows and selling financial assets, and |
| – | The contractual terms of the financial asset
give rise to cash flows that are “solely payments of principal and interest.” |
For a financial asset measured at FVOCI, gains
and losses are recognized in OCI, except for the following, which are recognized in profit or loss in the same manner as financial assets
measured at amortized cost:
| – | Interest income using the effective interest method; |
| – | Expected credit losses (ECL) and reversals; and |
| – | Exchange gains and losses. |
When a financial asset measured at FVOCI is derecognized,
the accumulated gain or loss previously recognized in OCI is reclassified from equity to profit or loss.
In the initial recognition of an equity instrument
not held for trading, the Group may choose for each instrument individually to present changes in fair value in OCI. Gains and losses
on such equity instruments are never reclassified to profit or loss and no impairment in profit or loss is recognized. Dividends are
recognized in profit or loss unless they clearly represent a recovery of part of the cost of the investment, in which case they are recognized
in OCI. Accrued gains and losses recognized in OCI are transferred to retained earnings at the time of disposition of an investment.
In the initial recognition, the Group may irrevocably
designate a financial asset that otherwise meets the requirements to be measured at amortized cost or FVOCI or FVPL if doing so eliminates
or significantly reduces an accounting asymmetry that would otherwise arise.
All other financial assets are classified as measured
at fair value through profit or loss. This category includes derivative financial instruments.
Assessment of the business model
The Group makes an assessment of the objective
of a business model in which an asset is held at a portfolio level. The information considered includes:
| – | the stated policies and objectives for the
portfolio and the implementation of those policies. In particular, whether Management focuses on revenues derived from contractual interest; |
| – | how the performance of the portfolio is assessed
and reported to Management; |
| – | the risks that affect the performance of the
business model and how those risks are managed; |
| – | how managers of the portfolio are compensated
– e.g. whether compensation is based on the fair value of the assets managed or the cash flows collected; and |
| – | the frequency, volume and timing of sales in
prior periods, the reasons for such sales and future sales projection. However, information about sales levels is not considered in isolation,
but as part of an overall assessment of how the Group sets its financial asset management objectives. |
Financial assets that are held for trading or
managed and whose performance is evaluated on a fair value basis are measured at fair value through profit or loss.
Assessment on whether cash flows are
“solely payments of principal and interest” (SPPI test)
In the assessment of whether contractual cash
flows are “solely payments of principal and interest”, ‘principal’ is defined as the fair value of the financial
asset on initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit risks
associated with the outstanding principal amount. This includes assessing whether the financial asset contains contractual terms that
could change the timing or amount of contractual cash flows such that it would not meet this condition.
In performing such assessment, the Group considers:
| – | contingent events that would change the amount
and timing of cash flows; |
| – | early payment terms and extensions; |
| – | terms that restrict the Bank's rights in cash
flows from specific assets; and |
| – | functions that modify the consideration of
the time value of money (for instance, interest rate periodical reset). |
Reclassifications
Financial assets are not reclassified after
their initial recognition, except for a change in the Group's business models. Financial liabilities are not reclassified.
c) Classification of financial liabilities
The Group classifies its financial liabilities,
other than derivatives, guarantees issued and liabilities at fair value through profit or loss as measured at amortized cost.
Financial instruments held for trading and derivatives
are measured at fair value through profit or loss.
Financial liabilities held for trading have been
acquired or incurred primarily to be sold or repurchased in the short term, or are held as part of a portfolio which is jointly managed
to make short-term profits or to take positions. Trade liabilities are initially recognized and then measured at fair value in the Consolidated
Statement of Financial Position, with transaction costs being recognized through profit or loss. Changes in fair value are recognized
through profit or loss as part of the net revenues from trading.
Financial guarantees are contracts that require
the Group to make specified payments to reimburse the holder for a loss that it incurs because a specified debtor fails to make payment
when it is due in accordance with the terms of a debt instrument.
The debt from financial guarantees issued is initially
recognized at fair value. The debt is subsequently measured at the higher of the amortized amount and the present value of any expected
payment to settle the liability when a payment under the contract has become probable.
The Group recognizes sales of financial instruments
with the commitment of non-optional repurchase at a certain price (repos) as a financing received in the line “Repo transactions”
in the Consolidated Statement of Financial Position. The difference between the purchase and sale prices of those instruments is recorded
as interest accrued during the term of the transactions using the effective interest method and is accounted for in the line "Interest
expenses" in the Consolidated Statement of Income.
d) Measurement at amortized cost
The amortized cost of a financial asset or liability
is the amount at which the financial asset or financial liability is measured at initial recognition minus principal repayments, plus
or minus the amortization, using the effective interest method, of any difference between the initial amount and the amount at maturity.
In the case of financial assets, it also includes any impairment adjustments (doubtful accounts).
e) Changes in financial assets and liabilities
i) Financial assets
If the terms of a financial asset are changed,
then the Group assesses whether the cash flows of the changed asset are substantially different.
If the cash flows are substantially different,
then the contractual rights to the cash flows of the original financial asset are considered to have expired. In this case, the original
financial asset is derecognized, and a new financial asset is recognized at its fair value plus any eligible transaction costs. Any fees
received as part of the modification are accounted for as follows:
| – | Fees that are considered in determining the fair value of the
new asset and fees that represent the reimbursement of eligible transaction costs are included in the initial measurement of the asset;
and |
| – | Other fees are included in profit or loss as part of the gain
or loss on derecognition. |
If cash flows are modified when the borrower is
facing financial difficulties, then the purpose of the modification is usually to maximize the recovery of the original contractual terms
rather than originating a new asset with substantially different terms. If the Group plans to modify a financial asset in a way that results
in the forgiveness of cash flows, then it first considers whether a portion of the asset should be written off before the modification
is carried out. This approach impacts the outcome of the quantitative assessment, and the derecognition criteria are generally not met
in such cases.
If the modification of a financial asset measured
at amortized cost or FVOCI does not result in the financial asset being derecognized from the accounts, then the Group first recalculates
the gross carrying amount of the financial asset using the original effective interest rate of the asset and recognizes the resulting
adjustment as a modification of gain or loss in profit or loss. For floating-rate financial assets, the original effective interest rate
used to calculate the gain or loss of the modification is adjusted to reflect the current market terms at the time of the modification.
Any costs or fees incurred, and fees received as part of the modification adjust the gross carrying amount of the modified financial
asset and are amortized over the remaining term of the modified financial asset.
If such modification is carried out due to financial
difficulties of the borrower, then the gain or loss is presented along with impairment losses. In other cases, it is presented as interest
income calculated using the effective interest rate method.
ii) Financial Liabilities
The Group derecognizes a financial liability when
its terms are modified and the cash flows of the modified liability are substantially different. In this case, a new financial liability
based on the modified terms is recognized at its fair value. The difference between the carrying amount of the derecognized financial
liability and the consideration paid is recognized in profit or loss. The consideration paid includes any non-financial assets transferred,
if any, and the assumption of liabilities, including the new modified financial liability.
If the modification of a financial liability is
not accounted for as derecognition, then the amortized cost of the liability is recalculated by discounting the modified cash flows at
the original effective interest rate, and the resulting gain or loss is recognized in profit or loss. For floating-rate financial liabilities,
the original effective interest rate used to calculate the gain or loss on modification is adjusted to reflect the current market terms
at the time of modification. Any costs and fees incurred are recognized as an adjustment to the carrying amount of the liability and are
amortized over the remaining term of the modified financial liability by recalculating the effective interest rate of the instrument.
f) Derecognition of financial assets and
liabilities
i) Financial Assets
The Group derecognizes a financial asset when
the contractual rights to the cash flows of the financial asset expire, or it transfers the rights to receive the contractual cash flows
in a transaction in which substantially all risks and rewards of ownership of the financial asset are transferred, or in which the Group
neither transfers nor retains substantially all risks and benefits of ownership and does not retain control of the financial asset.
When a financial asset is derecognized, the difference
between the carrying amount of the asset (or the carrying amount allocated to the portion of the asset derecognized) and the sum of (i)
the consideration received (including any new assets obtained less any new liabilities assumed) and (ii) any accumulated gain or loss
that would have been recognized in OCI is recognized in profit or loss.
Any accumulated gain/loss recognized in OCI with
respect to equity investment securities designated as FVOCI are not recognized in gains or losses at the time of derecognition of such
securities. Any interest in transferred financial assets that qualifies for derecognition in accounts that is created or retained by the
Group is recognized as a separate asset or liability.
The Group enters into transactions whereby it
transfers assets recognized in its statement of financial position, but retains all or substantially all of the risks and rewards of the
transferred assets or a portion thereof. In such cases, the transferred assets are not derecognized from accounts. Examples of such transactions
are securities lending and buying and selling transactions.
When assets are sold to a third party with a concurrent
total rate of return swap on the transferred assets, the transaction is accounted for as a secured financing transaction similar to repo
sale transactions, because the Group retains all or substantially all of the risks and rewards of ownership of such assets.
In transactions where the Group does not retain
or transfer substantially all of the risks and rewards of ownership of a financial asset and retains control over the asset, the Group
continues to recognize the asset to the extent of its continuing interest, determined by the extent to which it is exposed to changes
in the value of the transferred asset.
In certain transactions, the Group retains the
obligation to service the transferred financial asset in exchange for a fee. The transferred asset is derecognized if it meets the derecognition
criteria. An asset or liability for the servicing contract is recognized if the service fee is more than adequate (asset) or less than
adequate (liability) to perform the service.
ii) Financial Liabilities
The Group derecognizes a financial liability when
its contractual obligations are fulfilled, settled, or expire.
g) Impairment of financial assets
By means of Communication “A” 6778,
as amended, the BCRA established the adoption of the expected credit loss model set forth under paragraph 5.5. of IFRS 9 to calculate
allowances for loan losses, excluding debt instruments issued by the non-financial government sector from the scope of such standard (“IFRS
9 as per BCRA”) for Group “A” institutions, effective for fiscal years beginning on or after January 1, 2020, with retroactive
effects. The impact of the change in accounting policy was recognized in Unappropriated retained earnings as of January 1, 2019, which
is the transition date. Until such date, the Entity applied the impairment model established by the BCRA pursuant to Communication "A"
2950 as amended, which requires the recognition of allowances for loan losses based on minimum guidelines established by the BCRA.
As from January 1, 2020, the Bank recognizes the
allowance for loan losses based on the expected credit loss model, for the following financial instruments that are not measured at fair
value through profit or loss:
| – | financial assets that are debt instruments, |
| – | financial guarantee contracts, and |
No impairment is recognized in respect of debt
instruments issued by the non-financial government sector or in respect of equity instruments.
The IFRS 9 impairment model applies to financial
assets measured at amortized cost and financial assets measured at fair value through other comprehensive income, except for investments
in equity instruments. Additionally, all financial instruments measured at fair value through profit or loss are excluded from the impairment
model.
The standard classifies financial instruments
into three categories, depending on the evolution of their credit risk since their initial recognition. The first category includes transactions
without a significant increase in credit risk since initial recognition and not credit-impaired for which a 12-month Expected Credit Loss
(ECL) is recognized (Stage 1). The second category comprises financial assets for which a significant increase in credit risk has been
identified since initial recognition but that are not credit-impaired (Stage 2) for which a lifetime ECL is recognized. And the third
category, for impaired financial assets where one or more events have occurred that have a detrimental impact on the estimated future
cash flows of the financial asset (Stage 3).
The calculation of provisions for credit risk
in each of these three categories is carried out differently according to expected loss concepts:
| – | Expected loss at 12 months: Expected credit
loss arising from possible default events within the 12 months following the date of financial statements presentation, applicable to
financial assets classified in Stage 1; and |
| – | Expected credit losses over the life of the
transaction: It is the expected credit loss arising from all possible default events during the remaining life of the financial instrument,
applicable to financial assets classified in Stage 2 and 3. |
All of this requires considerable judgment, both
in modeling for the estimation of expected losses and in forecasts, on how economic factors affect such losses, which must be made on
a weighted probability basis.
The Group has applied the following definitions
in accordance with IFRS 9:
New Definition of Default (“NDoD”)
(as from November 2021)
Historically, the definition of credit-impaired
asset within the scope of IFRS 9 has been largely consistent with the definition of noncompliance used by the Bank for the internal management
of credit risk. In 2021, the Bank updated its definition of noncompliance. Therefore, the definition of credit-impaired asset (Stage 3)
has been updated accordingly and it is deemed to be a change in the accounting estimates, which restores consistency with the definition
of noncompliance and ensures the integration of both definitions in the management of credit risk. This amendment constitutes a change
in an accounting estimate and therefore, it was recognized prospectively.
Restructured financial assets (See Note
42.1.)
If the terms of a financial asset are renegotiated
or amended, or if the financial asset is replaced with another one as a consequence of debtor's financial distress, then such financial
asset will be assessed for derecognition, and an allowance for loan losses will be calculated as follows.
| – | If the expected restructuring does not result
in the derecognition of the existing asset, then, the expected cash flows from the restructured financial asset are considered. |
| – | If the expected restructuring results in the
derecognition of the existing asset, then, the fair value of the new asset is considered as the final cash flow from the existing financial
asset. |
Impaired financial assets
At each reporting year end, the Group assesses
assets measured at amortized cost and debt instruments (financial assets) measured at fair value through OCI for impairment. A financial
asset is impaired when one or more events have occurred having a negative impact on the estimated cash flows from the financial asset.
Evidence that a financial asset is impaired
includes the following observable inputs:
| – | borrower's or issuer's significant financial
distress, |
| – | restructuring of a loan under conditions the
Bank would not otherwise agree to, |
| – | when borrower is likely to go into bankruptcy
or other form of financial reorganization, or |
| – | disappearance of an active market for a security
due to issuer's financial distress. |
It may not be possible to identify a single
discrete event. Instead, the combined effect of multiple events may cause financial assets to experience credit deterioration.
The definition of impaired financial assets
within the Group aligns with the default definition explained earlier.
Significant Increase in Credit Risk
The purpose of impairment requirements is to
recognize ECLs for financial instruments for which there has been a significant increase in credit risk since initial recognition, considering
all reasonable and documented information, including prospective information.
The model developed by the Group to assess the
significant increase in credit risk has a dual focus:
| – | Quantitative Criterion: The Group employs a
quantitative analysis based on comparing the current expected probability of default over the life of the transaction with the adjusted
original expected probability of default, ensuring both values are comparable in terms of expected probability of default for their residual
life. The thresholds used to consider a significant increase in risk take into account special cases based on geographic areas and portfolios.
Depending on the age of the existing transactions at the time of standard implementation, some simplification
is made to compare default probabilities between the current and original timeframes, based on the best available information at that
time. |
| – | Qualitative Criterion: Most indicators for
detecting significant increases in risk are included in the Group's systems through rating/scoring systems or macroeconomic scenarios,
thus the quantitative analysis covers most circumstances. The Group will use additional qualitative criteria when it deems it necessary
to include circumstances not reflected in the rating/scoring systems or macroeconomic scenarios used. |
Additionally, instruments meeting any of the
following main circumstances are classified as Stage 2 (Qualitative Criterion):
| – | Over 30 days past due. However, this presumption
may be rebutted in cases where the Group, based on reasonable and documented information, considers that such default does not represent
a significant increase in risk. The Group has not considered periods exceeding 30 days for any of the significant portfolios. |
| – | Watchlist: These are subject to special monitoring
by Risk units due to negative signs in their credit quality, even if there is no objective evidence of impairment. |
| – | Refinancing or restructuring that does not
show evidence of impairment. |
Method for calculating ECLs
The measurement of ECLs should reflect:
| – | An amount that is considered fair and unbiased,
determined by evaluating a variety of possible outcomes. |
| – | The time value of money. |
| – | Reasonable and documented information that
is available at no cost or undue effort and that reflects current conditions and forecasts of future economic conditions. |
The Group measures ECLs both individually and
collectively.
For significantly impaired instruments, the
amount of credit losses is calculated as the difference between the expected discounted cash flows at the effective interest rate of the
transaction and the carrying amount of the instrument.
To determine which and how many clients need
to be analyzed individually, the Group adopts the criterion defined by BBVA Group, which is a relative weight in terms of total risk over
the total delinquency risk of the wholesale exposure and, in terms of total risk, over the total risk Watchlist of the wholesale exposure.
The scope of individual analysis is defined
with the following criteria to analyze all clients with at least one asset past due and with total risk above the local threshold (24,000)
or with at least one asset on the Watchlist with total risk above the local threshold (64,000), namely:
a) Stage 3 and Total Risk > 24,000;
b) Stage 2, Watchlist, and Total Risk >
64,000.
Default Exposure Threshold: The threshold
is set in such a way that clients with total risk above this threshold are individually assessed for at least 40% of the total default
risk of the wholesale portfolio.
Watchlist Exposure Threshold: The threshold
is set in such a way that clients with total risk above this threshold are individually assessed for at least 20% of the total risk of
the wholesale portfolio on the Watchlist.
For the collective measurement of expected
losses, instruments are grouped into asset pools based on their risk characteristics. Exposure within each group is segmented according
to common credit risk characteristics, which are indicative of the borrower's repayment ability in accordance with their contractual conditions.
These risk characteristics must be relevant in estimating the future cash flows of each group. Credit risk characteristics may include,
among others, the following factors:
| – | Rating or scoring tools. |
| – | Time period in default for Stage 3. |
| – | Qualitative criteria that may signify a significant
increase in risk. |
ECLs are derived from the following parameters:
| – | Probability of Default (PD): Estimate of the
likelihood of default within a specified timeframe. |
| – | Exposure at Default (EAD): Estimate of exposure
in the event of default in each future period, considering changes in exposure after the financial statements' reporting date. |
| – | Loss Given Default (LGD): Estimate of loss
in the event of default, calculated as the difference between contractual cash flows and receivables, including collateral. |
| – | Credit Conversion Factor (CCF): Estimate made
on off-balance sheet balances to determine exposure subject to credit risk in the event of default. |
For debt securities, the LDP (Low Default Portfolio)
methodology used relies on parameters based on external ratings.
Use of present, past, and future information.
ECLs require the integration of present, past,
and future information to detect any significant increase in risk and measure the expected loss.
ECLs do not require the identification of all
possible scenarios to measure the expected loss. However, it is also necessary to consider the probability of a loss event occurring and
the probability of it not occurring, even if the likelihood of a loss may be very small. Additionally, when there is no linear relationship
between the different future economic scenarios and their associated expected losses, more than one future economic scenario should be
used for measurement.
The approach employed by the Group involves
initially using the most probable scenario (base scenario) consistent with that used in the Group's internal management processes, and
then applying an additional adjustment calculated by considering the weighted average of expected losses in other economic scenarios (a
more positive and a more negative one). This adjustment is applied every three months, and the macro model is calibrated at least once
a year. The primary macroeconomic variable in each of the scenarios is the Gross Domestic Product ("GDP").
Recognition of the allowance for expected
credit losses
The allowance for expected credit losses is recognized
as follows:
| – | Financial assets measured at amortized cost:
as a write-down of the asset carrying amount in the Statement of Financial Position. |
| – | Loan commitments and financial guarantees contracts:
recognized under the line Provision for contingent commitments under liabilities, in the Statement of Financial Position. |
| – | When a financial instrument includes a drawn
component and an undrawn component, and the Group cannot identify the ECLs of the commitment component separately from that of the drawn
component: the Group presents a combined provision for losses for both components. The combined amount is presented as a deduction from
the gross carrying amount of the drawn component. Any excess of the provision for losses over the gross amount of the drawn component
is presented as a provision; and |
| – | Financial assets measured at fair value through
OCI: no allowance is recognized in the Statement of Financial Position because the assets are measured at fair value. However, the allowance
for expected credit losses is recognized in OCI. |
Measurement of expected credit
losses (ECL)
IFRS 9 requires determining the expected credit
loss (ECL) of a financial instrument in a way that reflects an unbiased estimate, the time value of money and a forward-looking perspective
(including the economic forecast).
Therefore, the recognition and measurement of ECL
is highly complex and involves the use of significant analysis and estimation including formulation and incorporation of forward-looking
economic conditions into ECL.
Risk parameters adjusted by macroeconomic
scenarios
ECL must include forward-looking macroeconomic information.
The Group uses the credit risk parameters probability of default (PD), loss-given default (LGD) and exposure at default (EAD) in order
to calculate the ECL for the credit portfolios.
The Group´s methodological approach in order
to incorporate the forward-looking information aims to determine the relation between macroeconomic variables and risk parameters following
three main steps:
| – | Step 1: Analysis and transformation of time
series data. |
| – | Step 2: For each dependent variable, find conditional
forecasting models that are economically consistent. |
| – | Step 3: Select the best conditional forecasting
model from the set of candidates defined in Step 2, based on their out of sample forecasting performance. |
How economic scenarios are reflected
in calculation of ECL
Based on economic theory and analysis, the macroeconomic
variables most directly relevant for explaining and forecasting the selected risk parameters are:
| – | The net income of families, corporations or
public administrations. |
| – | The payment amounts on outstanding loans’
principal and interest. |
The Group approximates these variables by using
a proxy indicator from the set included in the macroeconomic scenarios provided by the economic research department.
Only a single specific indicator for each of the
two variables can be used, and only core macroeconomic indicators should be selected as first choice: for a) using Real GDP Growth can
be seen as the single sufficient “factor” required for capturing the influence of all potentially relevant macro-financial
scenario on internal PDs; for b) using the most representative short term interest rate or exchange rates expressed in real terms.
Real GDP growth is given priority over any other
indicator not only because it is the most comprehensive indicator of income and economic activity, but also because it is the central
variable in the generation of macroeconomic scenarios.
Multiple scenario approach under IFRS
9
IFRS 9 requires calculating an unbiased probability
weighted measurement of ECL by evaluating a range of possible outcomes, including forecasts of future economic conditions.
The BBVA Research team produces forecasts of macroeconomic
variables under a baseline scenario, which are used in the rest of the related processes of the Group, such as budgeting, the internal
capital adequacy assessment process (ICAAP), risk appetite framework and stress testing.
Additionally, the BBVA Research team produces alternative
scenarios to the baseline scenario so as to meet the requirements under the IFRS 9 standard.
Alternative macroeconomic scenarios
For each of the macroeconomic variables (GDP or
interest rate or exchange rate), the BBVA Research team produces three scenarios.
Each of these scenarios corresponds to the expected
value of a different area of the probabilistic distribution of the possible projections of the economic variables.
The approach of the Group consists in using the
scenario that is the most likely scenario, which is the baseline scenario, consistent with the rest of internal processes (ICAAP, Budgeting)
and then applying upside and downside scenarios by taking into account the weighted average of the ECL determined by each of the scenarios.
It is important to note that, in general, it is
expected that the effect of the adjustment due to the application of multiple scenarios will increase the ECL. It is possible that the
referred adjustment does not have that effect, whenever the relationship between macro scenarios and losses is linear, however, it is
not expected to reduce the ECL.
h) Derecognitions
Loans are derecognized (partially or totally)
when there are no realistic expectations of recovery. This is generally the case when the Group determines that the borrower has no assets
or sources of income that could generate sufficient cash flows to repay the amounts subject to write-off. This assessment is carried out
at the individual asset level.
Recoveries of previously written-off amounts are
included in "impairment of financial assets" in the Consolidated Statement of Comprehensive Income.
Financial assets that have been written off may
still be subject to enforcement activities to comply with the Group's procedures for recovering outstanding amounts.
i) Offsetting of financial assets and
liabilities
Financial assets and liabilities are offset
and their net amount is disclosed in the Consolidated Statement of Financial Position if, and only if, the Group has a legally enforceable
right to offset the amounts recognized and the intention to settle them on a net basis, or the intention to realize the asset and settle
the liability simultaneously.
Revenues and expenses are disclosed on a net basis
only to the extent permitted by the IFRS, or otherwise to reflect profits or losses arising from a group of similar transactions.
2.3.5. Investments in equity instruments
Investments in equity instruments for which the
Group has no control, joint control or a significant influence are measured at fair value through profit or loss and at fair value through
other comprehensive income.
2.3.6. Investments in associates
An associate is an entity over which the Group
has a significant influence but no control or joint control over financial and operating policies. Significant influence is presumed to
exist when the Group holds between 20 and 50 percent of the voting power of another entity. A joint venture is an agreement whereby the
Group has joint control, that is to say, the Group has a right over the net assets, rather than over the assets and liabilities, of the
agreement.
Interests in associates are accounted for using
the equity method. They are initially recognized at cost, which includes transaction costs. After initial recognition, the consolidated
financial statements include the Group's share in the profit or loss and OCI of investments accounted for using the equity method, until
the date when the significant influence or joint control cease.
When the Group's share of losses exceeds its interest
in an associate accounted for under the equity method, the carrying amount of such interest, including long-term investments, is written
down to zero, without recognizing additional losses, except to the extent the Group has an obligation or has made payments on behalf of
the investee.
2.3.7. Property and equipment
Property and equipment items are measured at restated
cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost includes the spot purchase price and expenses
directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating as intended by Management.
As of the transition date to IFRS, January 1,
2017, the Group considered the fair value of its real properties as of such date determined through technical appraisals as their attributed
cost.
If significant parts of a property and equipment
item have different useful lives, such parts are recognized as separate items (main components) of property and equipment.
Gains or losses from the disposal of a property
and equipment item are carried at net amounts under Other income in the Statement of Income.
Subsequent expenses are only capitalized if they
are likely to provide future economic benefits for the Group. Repairs and maintenance in progress are recognized in profit or loss as
incurred.
Depreciation is calculated using the straight-line
method during the estimated useful lives of the assets and is recognized in the Consolidated Statement of Income under “Depreciation
and impairment.” The estimated useful lives of significant property and equipment items are as follows:
| - | Buildings: as reported in the technical appraisal
corresponding to each building |
| - | Furniture and facilities: 10 years |
Depreciation methods and useful lives are reviewed
at each reporting date and adjusted prospectively, if necessary.
As a non-monetary asset, this item was adjusted
for inflation.
2.3.8. Leases
IFRS 16 introduces a single lessee accounting
model, requiring that lessees recognize a right of use of the leased asset and a lease liability representing the obligation to make lease
payments. The Entity has opted to apply the exceptions related to the recognition of short-term leases and leases where the underlying
asset is of low value.
As to the lessor's accounting, IFRS 16 substantially
keeps the requirements of IAS 17. Therefore, lessors continue classifying leases as operating or finance, and each of them is recognized
differently.
The Group recognizes the right of use as an
asset and the lease liability as a liability, mainly related to the leases of offices in its branch network (Note 25).
As of December 31, 2023 and 2022, the Entity
has not entered into agreements related to variable lease payments. As of such date, there are no leases that have not yet commenced,
pursuant to which the Entity has undertaken commitments, and which enter into force in subsequent years.
Below is a detail of the related accounting
policies:
Contracts that contain a lease
At the contract inception, the Group evaluates whether
a contract is, or contains a lease. A contract is or contains a lease if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration.
As a lessor
When the Group acts as a lessor, at lease inception,
it determines whether it is a finance or an operating lease.
To classify each lease, the Group evaluates if it
transfers substantially all the risks and rewards incidental to ownership of the leased asset. If this is the case, then the lease is
a finance lease, otherwise, it is an operating lease.
In a finance lease, the leased asset is derecognized
and recognized as a receivable for an amount equivalent to the net investment in the lease under “Loans and other financing.”
Lease payments included in the measurement of the
net investment are as follows:
| – | Fixed payments, including in-substance fixed
payments; |
| – | Variable lease payments, which depend on a
rate or index, initially measured using the rate or index as at the lease commencement date; |
| – | Any amounts expected to be payable under a
residual value guarantee; |
| – | The exercise price under purchase options,
if it is reasonably certain that they will be exercised; |
| – | Any penalties for early termination, if it
is reasonably certain that the contract will be early terminated. |
Payments received under a finance lease are broken
down into interest and the reduction of the net investment in the lease. Interest is recognized over the lease term applying an effective
interest rate. Contingent leases are not considered in determining the net investment in the lease.
In an operating lease, the leased asset (generally
investment properties) is not derecognized, and the collection received is recognized as revenues applying the straight line method.
As a lessee
The Group recognizes a right of use asset and a
lease liability at the commencement date. The right of use asset is initially measured at cost, which comprises the initial amount of
the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and
an estimate of costs to dismantle or restore the underlying asset, less any incentives received.
The right of use asset is subsequently depreciated
using the straight-line method from the commencement date to the expiration of the lease term.
The lease liability is initially measured at the
present value of the lease payments that were not paid at the commencement date, discounted using the Group’s incremental borrowing
rate.
Lease payments included in the measurement of the
lease liability comprise the following:
| – | Fixed payments, including fixed payments in kind; |
| – | Variable lease payments, which depend on a
rate or index, initially measured using the rate or index as at the lease commencement date; |
| – | Any amounts expected to be payable under residual
value guarantee; |
| – | The exercise price under a purchase options,
if it is reasonably certain that they will be exercised; |
| – | Any amounts expected to be payable for renewal
periods if it is reasonably certain that the extension options will be exercised; and |
| – | Any penalties for early termination, if it
is reasonably certain that the contract will be early terminated. |
The lease liability is measured at amortized cost
using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in a rate
or index, if there is a change in the Group´s estimate of the amount expected to be payable under a residual value guarantee or
if the Group changes its assessment of whether it will exercise a purchase, extension or early termination option.
When the lease liability is remeasured, the relevant
adjustment is made to the right of use asset.
US dollar-denominated lease liabilities are converted
into functional currency at the spot exchange rate as of the reporting date. Exchange gains or losses resulting from conversion are recognized
in profit or loss.
The Group has elected not to recognize right-of-use
assets and lease liabilities of low-value assets and short-term leases, including IT equipment. The Group recognizes the lease payments
associated with these leases as an expense, on a straight-line basis during the lease term.
2.3.9. Intangible assets
Intangible assets include the information systems
restated costs of acquisition and implementation, which are measured at cost less accumulated amortization and impairments, if any.
Subsequent disbursements related to information
systems are only capitalized if the economic benefits of the related asset increase. All other expenses are recognized as a loss as incurred.
Information systems are amortized using the straight-line
method over their estimated useful life of 5 years, and their amortization is recognized in “Depreciation and amortization”
in the Consolidated Statement of Income.
Amortization methods, as well as the useful life
assigned are reviewed at each reporting date and adjusted prospectively, if applicable.
As a non-monetary asset, this item was adjusted
for inflation.
2.3.10. Other non-financial assets
a) Investment properties
Investment properties are measured at cost, net
of accumulated depreciation and accumulated impairment losses, if any. The cost includes the spot purchase price and expenses directly
attributable to bringing the asset to the location and condition necessary for it to be capable of operating as intended by Management.
Any gain or loss from the disposal of investment
property (calculated as the difference between net revenues from the disposal and the carrying amount of the item) is recognized in profit
or loss.
Depreciation is calculated using the straight-line
method during the estimated useful lives of the assets and is recognized in the Consolidated Statement of Income under “Depreciation
and impairment.”
Depreciation methods and useful lives are reviewed
at each reporting date and adjusted prospectively, if necessary.
When the use of a given property changes such
that it is reclassified to property and equipment, its fair value as of the reclassification date becomes the cost at which the asset
will be subsequently recognized.
As a non-monetary asset, this item was adjusted
for inflation.
For the purposes of the depreciation calculation,
the guidelines described in 2.3.7. are followed.
b) Assets acquired as security for loans
Assets acquired as security for loans are measured
at fair value at the date on which the Entity becomes the owner thereof, and any differences with the accounting balance of the related
loan are recognized in profit or loss. The subsequent valuation will be based on the acquired asset.
2.3.11. Non-current assets held for sale
Non-current assets are classified as held for
sale, if it is highly likely that they will be recovered, mainly through their sale, which is estimated to occur within 12 months following
the date of their classification as such.
These assets or group of assets is generally measured
at the lower of their carrying amount and their fair value less the cost of disposal.
When a property and equipment item is classified
as “non-current assets held for sale,” depreciation is no longer applied.
2.3.12. Impairment of non-financial assets
At least at each reporting date, the Group assesses
whether there are indications that a non-financial asset may be impaired (except deferred tax assets). If there is such an indication,
the asset's recoverable value is estimated.
For the impairment test, assets are grouped into
the smallest group of assets generating cash inflows from their continuous use, which are largely independent of the cash inflows from
other assets or other cash generating units (CGU). The business goodwill acquired in business combinations is distributed to CGUs or groups
of CGUs that are expected to benefit from the synergies of the combination.
The “recoverable value” of an asset
or CGU is the higher of its value in use and its fair value less the cost of sale. The “value in use” is based on estimated
cash flows, discounted at their present value using the pre-tax interest rate that reflects current market assessment of the time value
of money and the risks specific to the asset or CGU.
If the accounting balance of an asset (or CGU)
is higher than its recoverable value, the asset (or CGU), is considered impaired and its carrying amount is reduced to its recoverable
value and the difference is recognized in profit or loss.
Reversal of an impairment loss for goodwill is
prohibited. For other assets, an impairment loss is reversed only to the extent the accounting value of the assets does not exceed the
value they would have had if the impairment had not been recognized.
2.3.13. Provisions
The Group recognizes a provision if, as a result
of a past event, there is a legal or implied obligation for an amount that can be reliably estimated and it is likely that an outflow
of resources will be required to settle such obligation.
To assess provisions, the existing risks and uncertainties
were considered, taking into consideration the opinion of the Group's external and/or internal legal advisors. Based on the analysis carried
out, the Group recognizes a provision for the amount considered as the best estimate of the potential expense necessary to settle the
present obligation at each year-end date.
The provisions recognized by the Group are reviewed
at each year-end date and adjusted to reflect the best estimate available.
2.3.14. Personnel benefits
a) Short-term personnel benefits
Short-term personnel benefits are recognized in
profit or loss when the employee provides the related service. A provision is recognized if the Group has the legal or implied obligation
as a result of past services provided by the employee, to pay an amount that can be reliably estimated.
b) Other long-term personnel benefits
The Group's obligation in relation to long-term
personnel benefits is equivalent to the amount of the future benefit the employees have earned in exchange for services provided during
the reporting and prior years. The benefit is discounted at present value. Changes in the measurement of the obligation are recognized
in profit or loss.
c) Termination benefits
Termination benefits are accounted for as an expense
at the earlier of the following dates: when the Group can no longer withdraw the offer of those benefits and when the Group recognizes
restructuring costs. If benefits are not expected to be settled in full within the 12 months subsequent to the reporting date, then such
benefits are discounted.
2.3.15. Share Capital and capital adjustments
The “Share Capital” is exposed at its
nominal value, in accordance with regulations in force, and the difference with its restated amount is presented in the supplementary
account “Capital adjustments”.
Incremental transaction costs directly attributable
to the issuance of common shares are recognized as a reduction in the contributions received, net of the related income tax.
2.3.16. Interest income and expenses
Interest income and expenses are recognized in
profit or loss using the effective interest method. The effective interest rate is the rate whereby the contractual payment and collection
cash flows are discounted during the expected lifetime of the financial instrument at the book value of the financial asset or liability.
The calculation of the effective interest rate
includes transaction costs, commissions and other items paid or received that are an integral part of the effective interest rate. Transaction
costs include incremental costs that are directly attributable to the acquisition of a financial asset or the issuance of a financial
liability.
The “amortized cost” of a financial
asset or liability is the amount at which the financial asset or financial liability is measured at initial recognition minus principal
repayments, plus or minus cumulative amortization, using the effective interest method of any difference between the initial amount and
the amount at maturity and, for financial assets, adjusted for any expected credit loss provision.
The “gross carrying amount of a financial
asset” is the amortized cost of a financial asset before adjustments to reflect the expected credit loss provision.
In calculating interest income and expenses,
the effective interest rate is applied to the gross carrying amount of the asset (when the asset is not credit impaired) or to the amortized
cost of the liability.
However, for credit-impaired financial assets
after initial recognition, interest income is calculated by applying the effective interest rate to the amortized cost of the financial
asset. If the asset is no longer credit impaired, then interest income is again calculated on a gross basis.
Interest income and expenses presented in the
Consolidated Statement of Income include interest on:
| – | financial assets and liabilities measured at amortized cost;
and |
| – | financial assets measured at fair value through
OCI. |
2.3.17. Commission income and expenses
This item includes commission income from transactions
with customers, primarily related to maintenance and administration commissions in respect of checking accounts, savings accounts, credit
cards, custody of securities and exchange transactions.
Commissions, fees and similar items that are
part of a financial asset or liability's effective interest rate are included in the measurement of the effective interest rate.
The breakdown of commission income and expenses
is presented in Note 29 and 30 to these financial statements.
The Bank has a benefit program in place, whereby
it offers points to individual customers, which can be redeemed for various products and/or services. While the program is managed by
the Bank, it has concluded that it is acting as an agent in relation to the points and consequently the allocated transaction price consists
only of the commission on the amounts paid to the principal.
All other commission income items, including service,
mutual funds management, and loan syndication fees, and sales commissions, are recognized when the related service is rendered.
2.3.18. Current and deferred income tax
Income tax expense for each period includes the
current income tax and deferred income tax and is recognized in profit or loss, except to the extent that it relates to an item recognized
in OCI or directly in shareholders’ equity.
a) Current tax
Current income tax includes the income tax payable,
or advances made during the year and any adjustment payable or receivable related to previous years. The amount of the current tax payable
(or to be recovered) is the best estimate of the amount that is expected to be paid (or to be recovered) measured at the applicable rate
at the year-end date.
b) Deferred tax
Deferred income tax recognizes the tax effect
of temporary differences between the accounting balances of the assets and liabilities and the related tax bases used to assess taxable
income.
Deferred tax is not recognized on:
| – | Temporary differences arising from the initial
recognition of assets or liabilities in a transaction other than a business combination and which does not affect either the accounting
or the taxable profit or loss. |
| – | Temporary differences associated with investments
in subsidiaries, to the extent it is probable that the reversal will not occur in the foreseeable future; and |
| – | Taxable temporary differences arising from
the initial recognition of goodwill. |
A deferred tax liability is recognized for the
tax effect of all taxable temporary differences.
A deferred tax asset is recognized for the tax
effect of unused tax losses and deductible temporary differences, insofar as it is likely that future taxable income will be generated
against which such temporary differences can be applied. Future taxable income is determined on the basis of the Bank’s and its
subsidiaries’ business plans. Deferred tax assets are reviewed at each year-end date, and are reduced to the extent the associated
tax benefits are no longer expected to be realized. Such reductions are reversed as future taxable income is more likely to be generated.
Deferred tax assets that have not been recognized
will be reassessed at each year-end date and will be recognized insofar as it is likely that the Entity will have future taxable income
against which such assets can be applied.
Deferred tax is measured at the tax rates expected
to be applied upon reversal of the temporary differences, using enacted or substantially enacted tax rates at year-end.
The measurement of deferred tax reflects the tax
consequences of the manner in which the Group expects to recover or settle the carrying amount of its assets and liabilities at year-end.
Deferred tax assets and liabilities can be offset
only if certain criteria are met.
2.3.19. Segment reporting
An operating segment is a component of the Group
engaged in business activities from which it can generate revenues and incur expenses, including revenues and expenses related to transactions
with any other components of the Group. The operating results of these segments are periodically reviewed by the highest operational decision-making
authority to make decisions about the resources to be allocated to the segment and assess its performance. Discrete financial information
is available for such segment.
The results of segments reported to the highest
operational decision-making authority include items that are directly attributable to a segment, as well as those that may be allocated
on a reasonable basis. Unallocated items mainly consist of corporate assets (primarily the Bank's headquarters), central office expenses,
and tax assets and liabilities.
2.3.20. Customer Loyalty Program
The loyalty program offered by the Bank involves
accumulating points generated from purchases made with credit cards, which may be exchanged for any available reward on the program platform.
The Bank concluded that the rewards to be granted
create a separate performance obligation. Therefore, at the end of each fiscal year, the Bank recognized a provision for the rewards to
be granted under the item "Other Liabilities."
2.4. Accounting judgments, estimates
and assumptions
The preparation of these consolidated condensed
financial statements in accordance with IFRS requires the preparation and consideration, by the Entity’s and its subsidiaries’
Management, of significant accounting judgments, estimates and assumptions that impact in the reported balances of assets and liabilities,
income and expenses, as well as in the determination and disclosure of contingent assets and liabilities as of the end of the reporting
year.
The entries made are based on the best estimate
of the probability of occurrence of different future events. In this sense, the uncertainties associated with the estimates and assumptions
adopted may result in the future in final results that would differ from such estimates and require significant adjustments to the reported
balances of the assets and liabilities affected. Accounting judgments, estimates and assumptions are reviewed on an ongoing basis and
their effect is recognized prospectively.
2.4.1. Judgments
The information about judgments made in applying
accounting policies that have the most significant effects on the amounts recognized in the consolidated financial statements is described
in Note 2.2. Determination of the “Basis of consolidation” regarding the existence of control of other entities and Note 2.3.
“Significant accounting policies” under the following headings:
| – | Note 2.3.4. b) “Classification of financial
assets” |
| – | Note 2.3.4. g) “Impairment of financial
assets” |
| – | Note 2.3.8. “Leases” A- “Contracts
that contain a lease” |
2.4.2. Assumptions and estimations of uncertainties
Information about assumptions and estimation of
uncertainties that have a significant risk of resulting in a material adjustment to these consolidated financial statements is included
in the following notes:
| – | Note 39.3. “Valuation techniques for
Levels 2 and 3” |
| – | Nota 2.3.13 – “Provisions”,
regarding the likelihood and scope of outflow of resources. |
| – | Notes 7, 8 and 9 – “Other financial
assets”, “Loans and other financing” and “Other debt securities” regarding the impairment of financial assets. |
| – | Note 11 – “Income tax,” regarding
availability of future taxable profit against which deferred tax assets and uncertain tax positions may be utilized. |
2.4.3. Measurements at fair value
Fair value is the price that would be received to
sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The most objective and usual reference of the fair
value of a financial asset or liability is the price that would be paid in an orderly, transparent and deep market, that is to say, its
quoted or market price.
If it is not possible to obtain a market price,
a fair value is determined using best market practice valuation techniques, such as cash flows discount based on a yields curve for the
same class and type of instrument, or if there is no market curve with the same characteristics of the bond, the fair value is calculated
considering the latest market price plus interest accrued until the valuation date (whichever is more representative for the security).
In line with the accounting standard, a three-level
classification of financial instruments is established. This classification is mainly based on the observability of the inputs used to
calculate that fair value, defining the following levels:
| – | Level 1: Financial instruments measured using quoted prices in an active market. Active market
means a market that allows the observation of representative prices with sufficient frequency and daily volume. |
| – | Level 2: The estimated amount of such claims is 66,150, out of which a cash disbursement of approximately
3,446 is expected for the next 3 months. Financial instruments without an active market, but that may be measured through observable market
inputs. Observable market inputs shall mean as such assets traded in markets that allow to calculate an interest rate curve or determine
a credit spread. |
| – | Level 3: Measurement using models based on variables not obtained from observable market inputs. |
2.5. Regulatory changes introduced
during this fiscal year
In the fiscal year beginning January 1, 2023, the
following amendments to IFRS became effective, which have not had a significant impact on these consolidated financial statements taken
as a whole:
Amendment to IAS 1 and IFRS Practice Statement
2 - Disclosures of accounting policies
These amendments require that an entity discloses
its material accounting policies instead of its significant accounting policies. In addition, within the amendments some explanations
were included on how an entity may identify a material accounting policy together with some examples of when an accounting policy may
be material. To that effect, a guidance with explanations and examples called “the 4-step materiality process” described in
Practice Statement 2 has been developed.
Amendment to IAS 8 “Accounting Policies,
Changes in Accounting Estimates and Errors” - Definition of accounting estimates
These amendments clarify the distinction between
changes in accounting estimates and changes in accounting policies and correction of errors. They also clarify how an entity uses valuation
techniques and input data to develop accounting estimates. The amendment to this standard clarifies that the effect on an accounting estimate
due to a change in an input or a change in a valuation technique are changes to accounting estimates if they do not result from the correction
of prior period errors. The preceding definition of changes in accounting estimates specified that these changes may result from new information
or new developments. Therefore, these changes are not corrections of errors.
The amendment to this IAS will be applicable to
the extent that the Entity makes a change in any accounting estimate.
Amendment to IAS 12 “Income Tax”
- Deferred tax related to assets and liabilities arising from a single transaction
The IASB issued amendments that narrow the scope
of the initial recognition exception under IAS 12, so that it is no longer applicable to transactions that give rise to equal taxable
and deductible temporary differences. The Amendments also clarify that where payments that settle a liability are deductible for tax purposes,
it is a matter of judgement (having considered the applicable tax law) whether such deductions are attributable for tax purposes to the
liability recognized in the financial statements (and interest expense) or to the related asset component (and interest expense). This
judgement is important in determining whether any temporary differences exist on initial recognition of assets and liabilities.
2.6. New pronouncements
Pursuant to Communication “A” 6114 issued
by the BCRA, as the new IFRS are approved, or the current IFRS are modified or repealed and, once such changes are adopted by the Argentine
Federation of Professional Councils of Economic Sciences (FACPCE) by means of Notices of Adoption, the BCRA shall issue a statement announcing
its approval for financial institutions. In general, the early application of any IFRS is not permitted, unless specifically permitted
at the time of adoption.
The standards and interpretations applicable to
the Entity, issued but ineffective as of the date of these consolidated financial statements are exposed below. The Entity will adopt
these standards, if applicable, when they are effective:
| a) | Amendments to IAS 1: Classification of current
and noncurrent liabilities with covenants |
In January 2020 and October 2022, the IASB issued
amendments to IAS 1 Presentation of Financial Statements specifying the requirements to classify liabilities as current or non-current.
The amendments clarify: (i) what it mean by a right to defer settlement; (ii) That a right to defer must exist at the end of the reporting
period; (iii) that such classification is unaffected by the likelihood that an entity will exercise its right to defer; (iv) that only
if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability do not affect its classification;
and (v) disclosures.
The IASB decided that if an entity's right to defer
payment of a liability is subject to an entity’s compliance with the required covenants only at a date subsequent to the reporting
period ("future covenants"), the entity has the right to defer payment of the liability even if the entity had not been compliant
at the end of the reporting period.
The amendments also clarify that the requirement
of the right to exist at the end of the reporting period applies to covenants that the entity must comply with at the reporting date
or earlier, regardless of whether compliance is evidenced at that date or at a later date. These amendments will be effective for fiscal
years starting on or after January 1, 2024. The Bank does not expect that those amendments have significant impact on the financial statements.
| b) | Amendment to IFRS 16 – Lease liability
in a sale and leaseback. |
In September 2022, the IASB issued amendments to
IFRS 16, specifically on the requirements that a lessee-seller uses to measure the lease liability arising in a sale and leaseback transaction,
to ensure that the lessee-seller does not recognize any amount of gain or loss that relates to the right-of-use. The application of these
requirements will not prevent the lessee-seller from recognizing, in profit or loss, any gain or loss related to the partial or total
termination of a lease. The amendment does not prescribe specific measurement requirements for lease liabilities arising from a subsequent
lease. The initial measurement of lease liabilities arising from a subsequent lease may result in the seller-lessee determining 'lease
payments' that are different from the general definition of lease payments. The seller-lessee should develop and apply an accounting policy
that results in information that is relevant and reliable in accordance with IAS 8. These amendments will be effective from January 1,
2024. The Entity does not expect that those amendments have significant impact on the financial statements.
| c) | Amendments to IAS 7 and IFRS 7 - Disclosures:
Supplier Finance Arrangements |
In May 2023, the IASB issued amendments to IAS 7
“Statement of Cash Flows” and IFRS 7 “Financial Instruments: Disclosures”, which specify the information requirements
to be disclosed to enhance the current requirements, the purpose of which is helping financial statement users to understand the effects
of supplier finance agreements on the entity’s liabilities, cash flows and exposure to liquidity risk.
These amendments require an entity to provide information
about the impact of supplier finance arrangements on liabilities and cash flows, including the terms and conditions of those arrangements,
the quantitative information on liabilities related to those arrangements at the beginning and end of the reporting period and the type
and effect of non-cash changes in the carrying amounts of those arrangements. The information on those arrangements is required to be
aggregated unless the individual arrangements have dissimilar or unique terms and conditions. In the context of the quantitative liquidity
risk disclosures required by IFRS 7, supplier finance arrangements are included as an example of other factors that might be relevant
to disclose. These amendments will be effective from January 1, 2024. The Entity does not expect that those amendments have significant
impact on the financial statements.
| d) | Amendments to IAS 21 - Lack of exchangeability |
In August 2023, the IASB issued amendments to IAS
21 relating to the “Lack of exchangeability”. The amendment to IAS 21 specifies how an entity should assess whether a currency
is exchangeable and how it should determine a spot exchange rate when interchangeability is lacking. A currency is considered to be exchangeable
for another currency when an entity is able to obtain the other currency without undue delay and through markets or exchange mechanisms
that create enforceable rights and obligations. If a currency is not exchangeable for another currency, an entity is required to estimate
the spot exchange rate at the measurement date. An entity's purpose in estimating the spot rate is to reflect the rate at which an orderly
exchange transaction would take place at the measurement date between market participants under prevailing economic conditions. The amendments
state that an entity may use an unadjusted observable exchange rate or other estimation technique.
When an entity estimates a spot exchange rate because
a currency is not exchangeable for another currency, it should disclose information that enables users of the financial statements to
understand how the fact of that currency not being interchangeable affects, the entity's performance, financial position and cash flows.
These amendments will be effective from January 1, 2025. The Entity is evaluating the effects that this amendment would have on the Financial
Statements.
2.7. Transcription to the books
As of the date of these consolidated financial statements,
they are in the process of being transcribed to the Book of Balance Sheets for Publication and result. In addition, the accounting entries
are in the process of being transcribed to the relevant books and records, in accordance with applicable laws in force.
3. Cash and deposits in banks
The breakdown in the Consolidated Statement of Financial
Position and the balance of cash and cash equivalents calculated for the purposes of the preparation of the Consolidated Statement of
Cash Flows is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Cash |
|
727,271,193 |
|
365,764,558 |
B.C.R.A. - Current account |
|
359,854,081 |
|
502,637,074 |
Balances with other local and foreign financial institutions |
|
55,824,596 |
|
53,988,779 |
Cash and cash equivalents for spot purchases or sales to be settled |
|
- |
|
281,050 |
|
|
|
|
|
TOTAL |
|
1,142,949,870 |
|
922,671,461 |
The
balances of Cash and deposits in banks as of December 31, 2021 amounted to 1,324,467,187.
4. Debt securities at fair
value through profit or loss
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Government securities |
|
223,932,573 |
|
33,957,345 |
Private securities - Corporate bonds |
|
2,150,301 |
|
- |
BCRA Liquidity Bills |
|
- |
|
45,513,297 |
|
|
|
|
|
TOTAL |
|
226,082,874 |
|
79,470,642 |
A breakdown of this information is provided in Exhibit A.
5. Derivative instruments
In the ordinary course of business, the group carried
out foreign currency forward transactions with daily or upon-maturity settlement of differences, with no delivery of the underlying asset
and interest rate swap transactions and options. These transactions do not qualify as hedging pursuant to IFRS 9 - “Financial Instruments”.
The aforementioned instruments are measured
at fair value and were recognized in the Consolidated Statement of Financial Position in the item “Derivative instruments”.
Changes in fair values were recognized in the Consolidated Statement of Income in “Net income from measurement of financial instruments
at fair value through profit or loss”.
Breakdown is as follows:
Assets
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Debit balances linked to foreign currency forwards pending settlement in pesos |
|
8,536,206 |
|
6,817,417 |
Income from put options taken (1) |
|
1,465,694 |
|
153,156 |
Debit balances linked to interest rate swaps - floating rate for fixed rate |
|
- |
|
92,737 |
|
|
|
|
|
TOTAL |
|
10,001,900 |
|
7,063,310 |
| (1) | The Entity subscribed for options as set forth
in Communication “A” 7546 issued by the BCRA. |
Liabilities
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Credit balances linked to foreign currency forwards pending settlement
in pesos
|
|
2,145,218 |
|
1,041,154 |
|
|
|
|
|
TOTAL |
|
2,145,218 |
|
1,041,154 |
The notional amounts of the forward transactions
and foreign currency forwards, stated in US Dollars (US$) and in Euros as applicable, as well as the base value of interest rate swaps
and put options taken are reported below:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Foreign currency forwards |
|
|
|
|
|
|
|
|
|
Foreign currency forward purchases - US$ |
|
169,836 |
|
1,165,119 |
Foreign currency forward sales - US$
|
|
119,093 |
|
1,217,856 |
Foreign currency forward sales - Euros |
|
5,500 |
|
1,825 |
|
|
|
|
|
Interest rate swaps
|
|
|
|
|
|
|
|
|
|
Fixed rate for floating rate (1) |
|
- |
|
1,500,000 |
|
|
|
|
|
Put options |
|
|
|
|
|
|
|
|
|
Put options taken (2) |
|
142,183,107 |
|
4,685,000 |
| (1) | Floating rate: Badlar rate, interest rate for deposits over one million
pesos, for a term of 30 to 35 days. |
6. Repo transactions
Breakdown is as follows:
Reverse repurchase transactions
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Amounts receivable for reverse repurchase transactions of BCRA Liquidity Bills with the BCRA (1) |
|
1,202,421,795 |
|
163,689,844 |
|
|
|
|
|
TOTAL |
|
1,202,421,795 |
|
163,689,844 |
| (1) | As of December 31, 2023 and 2022, repurchase
transactions involving BCRA liquidity bills fall due on January 2, 2024 and January 2, 2023, respectively. |
Repurchase transactions
No repurchase transactions were accounted for
as of December 31, 2023 and 2022.
7. Other financial assets
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
Measured at amortized cost |
|
|
|
|
|
|
|
|
|
Other receivables |
|
49,392,813 |
|
42,857,988 |
Receivables from sale of ownership interest in Prisma Medios de Pago S.A. (1) |
|
40,474,563 |
|
33,628,764 |
Financial debtors from spot transactions pending settlement
|
|
921,900 |
|
14,228,177 |
Non-financial debtors from spot transactions pending settlement |
|
874,585 |
|
273,352 |
Other |
|
127,093 |
|
186,183 |
|
|
|
|
|
|
|
91,790,954 |
|
91,174,464 |
|
|
|
|
|
Measured at fair value through profit or loss |
|
|
|
|
|
|
|
|
|
Mutual funds |
|
741,812 |
|
12,227,984 |
|
|
|
|
|
|
|
741,812 |
|
12,227,984 |
|
|
|
|
|
Allowance for loan losses (Exhibit R) |
|
(1,418,944) |
|
(1,438,804) |
|
|
|
|
|
TOTAL |
|
91,113,822 |
|
101,963,644 |
| (1) | On October 1, 2021, the Bank, together with
the other Class B Shareholders, gave notice of the exercise of the put option and therefore initiated the procedure to sell 49% of the
capital stock in the company Prisma Medios de Pago S.A. |
On March 18, 2022, the transfer of all the remaining
shareholding of the Bank in Prisma Medios de Pago S.A. was consummated for a price of US$ 40,038,122. Such amount will be paid as follows:
(i) 30% in Pesos adjustable by CER (UVA) at an annual nominal rate of 15% and (ii) 70% in US Dollars at an annual nominal rate of 10%
within a term of six years.
8. Loans and other financing
The Group holds loans and other financing under
a business model intended to collect contractual cash flows. Therefore, the Group measures loans and other financing at amortized cost.
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Credit Cards |
|
702,657,639 |
|
854,924,949 |
Unsecured instruments |
|
318,069,103 |
|
181,250,348 |
Overdrafts |
|
176,515,811 |
|
196,021,914 |
Loans for the prefinancing and financing of exports |
|
153,200,806 |
|
78,079,366 |
Consumer loans |
|
151,819,857 |
|
222,107,654 |
Discounted instruments |
|
145,212,037 |
|
182,199,444 |
Mortgage loans |
|
79,404,563 |
|
119,922,367 |
Pledge loans |
|
44,335,196 |
|
76,942,252 |
Other financial institutions |
|
16,432,085 |
|
13,903,746 |
Receivables from finance leases |
|
12,719,733 |
|
19,892,649 |
Loans to personnel |
|
10,268,564 |
|
15,016,004 |
Instruments purchased |
|
3,015,567 |
|
3,040,149 |
Non-financial government sector |
|
145,208 |
|
4,356 |
BCRA |
|
- |
|
28,132 |
Other financing |
|
207,122,798 |
|
334,798,604 |
|
|
|
|
|
|
|
2,020,918,967 |
|
2,298,131,934 |
|
|
|
|
|
Allowance for loan losses (Exhibit R) |
|
(45,421,577) |
|
(65,051,809) |
|
|
|
|
|
TOTAL |
|
1,975,497,390 |
|
2,233,080,125 |
The Group as lessor entered into finance lease agreements
related to vehicles and machinery and equipment. The following table shows the total gross investment in the finance leases (lease-purchase
agreement) and the current value of the minimum collections to be received thereunder:
|
|
12.31.23 |
|
12.31.22 |
|
|
Total investment |
Current value of minimum payments
|
|
Total investment |
Current value of minimum payments
|
Term |
|
|
|
|
|
|
|
|
|
|
|
|
|
Up to 1 year |
|
8,990,725 |
2,599,587 |
|
10,222,440 |
4,322,410 |
From 1 to 2 years |
|
9,274,940 |
3,653,345 |
|
10,002,205 |
5,118,434 |
From 2 to 3 years |
|
6,786,874 |
3,081,354 |
|
7,917,097 |
4,797,536 |
From 3 to 4 years |
|
3,661,321 |
2,194,714 |
|
4,666,061 |
3,306,834 |
From 4 to 5 years |
|
1,307,994 |
1,190,733 |
|
2,433,073 |
2,347,435 |
|
|
|
|
|
|
|
TOTAL |
|
30,021,854 |
12,719,733 |
|
35,240,876 |
19,892,649 |
|
|
|
|
|
|
|
Share capital |
|
|
12,073,883 |
|
|
19,343,628 |
Interest accrued |
|
|
645,850 |
|
|
549,021 |
|
|
|
|
|
|
|
TOTAL |
|
|
12,719,733 |
|
|
19,892,649 |
The breakdown of loans and other financing according
to credit performance (determined as per the criteria set forth by the BCRA in the debtor classification regulations) and guarantees received
are presented in Exhibit B. The information on concentration of loans and other financing is presented in Exhibit C. The reconciliation
of the information included in that Exhibit to the carrying amounts is shown below:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Total Exhibits B and C |
|
2,136,446,369 |
|
2,373,611,611 |
Plus: |
|
|
|
|
B.C.R.A. |
|
- |
|
28,132 |
Loans to personnel |
|
10,268,564 |
|
15,016,004 |
Interest and other items accrued receivable from financial assets with credit value impairment |
|
812,766 |
|
693,528 |
Less: |
|
|
|
|
Allowance for loan losses (Exhibit R) |
|
(45,421,577) |
|
(65,051,809) |
Adjustments for effective interest rate |
|
(13,671,477) |
|
(20,945,818) |
Corporate bonds and other private securities |
|
(9,391,406) |
|
(11,781,061) |
Loan commitments |
|
(103,545,849) |
|
(58,490,462) |
|
|
|
|
|
Total loans and other financing |
|
1,975,497,390 |
|
2,233,080,125 |
Note 42.2 to these consolidated financial statements
contains information on credit risk associated with loans and other financing and allowances measured using the expected credit loss model.
Trade-related loans
|
|
|
|
|
Economic Area/Activity |
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Consumption |
|
923,260,936 |
|
1,208,581,999 |
Other products |
|
230,610,252 |
|
238,919,426 |
Retail and wholesale |
|
163,762,439 |
|
158,550,599 |
Mining |
|
146,854,220 |
|
78,158,407 |
Agriculture and livestock |
|
97,698,638 |
|
190,155,046 |
Services |
|
36,861,131 |
|
76,717,121 |
Transport |
|
33,028,697 |
|
36,542,580 |
Other financial institutions |
|
14,588,039 |
|
10,576,285 |
Construction |
|
12,665,882 |
|
28,863,074 |
Electricity, oil, water and healthcare services |
|
10,755,610 |
|
9,515,786 |
Non-financial government sector |
|
145,208 |
|
4,356 |
BCRA |
|
- |
|
28,132 |
Other |
|
305,266,338 |
|
196,467,314 |
|
|
|
|
|
TOTAL |
|
1,975,497,390 |
|
2,233,080,125 |
As of December 31, 2023 and 2022, the Group holds
the following loan commitments booked in off-balance sheet accounts according to the financial reporting framework set forth by the BCRA:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Secured loans |
|
44,437,506 |
|
20,704,593 |
Liabilities related to foreign trade transactions |
|
38,202,789 |
|
26,389,316 |
Overdrafts and receivables not used |
|
18,175,641 |
|
6,602,868 |
Guarantees granted |
|
2,729,913 |
|
4,793,685 |
|
|
|
|
|
TOTAL |
|
103,545,849 |
|
58,490,462 |
Risks related to the aforementioned loan commitments
are assessed and controlled within the framework of the Group's credit risks policy (Note 42.1. Risk policies of financial instruments).
Financing line for productive
investment
The BCRA established a financing line for productive
investments of MSMEs (MiPyMEs, as per its Spanish acronym) aimed at financing CAPEX and/or the construction of the facilities needed for
the production and/or marketing of goods and/or services, financing working capital and discounting deferred checks and other instruments,
and other special eligible facilities allowed by applicable laws.
The facilities should be granted as part of the
2021/2022, 2022, 2022/2023, 2023 and 2023/2024 Quotas, pursuant to the following conditions:
Account |
2021/2022 Quota |
2022 Quota |
2022/2023 Quota |
2023 Quota |
2023/2024 Quota |
Applicable law |
“B” 12238 |
“B” 12326 |
“B” 12413 – “A” 7612 |
“B” 12544 – “A” 7720 |
"B" 12667 - “A” 7848 |
Amount to be allocated |
•
At least, the equivalent to 7.5% of the monthly average of daily balances of non-financial
private sector deposits in pesos of the previous month at the beginning of the period.
|
Calculation of applications |
Between 10.01.2021 and 03.31.2022 |
Between 04.01.2022 and 09.30.2022 |
Between 10.01.2022 and 03.31.2023 |
Between 04.01.2023 and 09.30.2023 |
Between 10.01.2023 and 03.31.2024 |
Maximum interest rate |
Capped at an annual nominal fixed rate of 35% for investment projects, and at an annual
nominal fixed rate of 45.5% for other purposes.
|
Capped at an annual nominal fixed rate of 64.50% for investment projects, and at an
annual nominal fixed rate of 75.50% for other purposes.
|
Capped at an annual nominal fixed rate of 74.50% for investment projects, and at an
annual nominal fixed rate of 86.50% for other purposes.
|
Capped at an annual nominal fixed rate of 97% for investment projects, and at an annual
nominal fixed rate of 109% for other purposes.
|
Currency |
Pesos |
Minimum term |
•
At the time of disbursement, the credit facilities shall have an average term of at least
24 months, but the total term shall not be of less than 36 months. No minimum term will apply to credit facilities aimed at financing
working capital and discounting deferred checks and other instruments.
|
As of December 31, 2023, the total amount disbursed
by the Entity meets the BCRA requirement. Disbursements are reported below:
Quota |
Minimum amount to be allocated (1) |
Simple Average of Daily Balances (1) |
Disbursed Amount (1) |
2021/2022 Quota |
32,447,048 |
43,434,402 |
62,449,414 |
2022 Quota |
42,867,291 |
63,022,460 |
98,200,990 |
2022/2023 Quota |
58,558,806 |
86,880,132 |
127,355,598 |
2023 Quota |
84,764,223 |
148,263,325 |
234,048,314 |
2023/2024 Quota |
135,740,381 |
(*) |
(*) |
(*) As of the date of these financial statements, the term reported
by Communication “A” 7848 and “B” 12667 has not expired.
(1) The amounts are exposed in nominal values.
9. Other debt securities
9.1. Financial assets measured
at amortized cost
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Argentine Treasury Bonds in pesos. Maturity 08-23-2025 |
|
49,502,692 |
|
- |
Argentine Treasury Bonds in pesos. Maturity 05-23-2027 |
|
32,406,871 |
|
100,997,240 |
Argentine Treasury Bonds in pesos at 0.7% Badlar Private Rate. Maturity 11-23- 2027
|
|
14,771,877 |
|
37,662,724 |
|
|
|
|
|
TOTAL |
|
96,681,440 |
|
138,659,964 |
9.2. Financial assets measured
at fair value through OCI
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Local BCRA Bills in foreign currency |
|
69,772,109 |
|
6,619,055 |
BCRA Liquidity Bills in pesos |
|
60,484,996 |
|
1,460,167,050 |
Government securities (1) |
|
521,874,441 |
|
391,849,627 |
Private securities - Corporate bonds |
|
8,959,190 |
|
11,593,436 |
|
|
|
|
|
TOTAL |
|
661,090,736 |
|
1,870,229,168 |
| (1) | In March 2023, the Bank launched a voluntary
debt swap under Section 11, Presidential Decree No. 331/2022 issued by the Ministry of Economy. The securities delivered/received under
such swap were as follows: |
Securities Delivered |
Species |
Nominal values |
ARGENTINE TREASURY BILL IN PESOS AT DISCOUNT. MATURITY APRIL 28, 2023 (LEDES S28A3) |
19,027,714,460 |
ARGENTINE TREASURY BILL IN PESOS ADJUSTED BY CER AT DISCOUNT. MATURITY MAY 19, 2023 (LECER X19Y3) |
7,000,000,000 |
ARGENTINE TREASURY BILL IN PESOS AT DISCOUNT. MATURITY MAY 31, 2023 (LEDES S31Y3) |
6,840,800,244 |
ARGENTINE TREASURY BILL IN PESOS AT DISCOUNT. MATURITY JUNE 30, 2023 (LEDES S30J3) |
5,532,343,136 |
Received Securities |
Species |
Nominal values |
ARGENTINE TREASURY BOND IN PESOS ADJUSTED BY CER 3.75% MATURITY APRIL 14, 2024 (T3X4P) |
13,237,176,685 |
ARGENTINE TREASURY BOND IN PESOS ADJUSTED BY CER 4% MATURITY OCTOBER 14, 2024 (T4X4P) |
17,649,568,913 |
ARGENTINE TREASURY BOND IN PESOS ADJUSTED BY CER 4.25% MATURITY FEBRUARY 14, 2025 (T2X5P) |
13,237,176,685 |
In June 2023, the Bank launched a new voluntary
debt swap under Section 11, Presidential Decree No. 331/2022 issued by the Ministry of Economy. The securities delivered/received under
such swap were as follows:
Securities Delivered |
Species |
Nominal values |
ARGENTINE TREASURY BILL IN PESOS ADJUSTED BY CER AT DISCOUNT. MATURITY JUNE 16, 2023 (LECER X16J3) |
2,159,998,000 |
ARGENTINE TREASURY BILL IN PESOS ADJUSTED BY CER AT DISCOUNT. MATURITY JULY 18, 2023 (LECER X18L3) |
35,863,500,000 |
ARGENTINE TREASURY BOND IN PESOS ADJUSTED BY CER 1.45% MATURITY AUGUST 13, 2023 (T2X3) |
3,622,490,577 |
Received Securities |
Species |
Nominal values |
ARGENTINE TREASURY BOND IN PESOS ADJUSTED BY CER 4.25% MATURITY DECEMBER 13, 2024 (T5X4P) |
71,442,000,014 |
In addition, the Bank purchased put options from
the BCRA. These options grant the Bank an opportunity to sell (put option) the underlying asset at a price determined by BCRA applicable
regulations. In this transaction, options may be exercised up to the day prior to the maturity date of the underlying asset. As of December
31, 2023, their notional value stood at 142,183,107,297 (see Exhibits A and O to the separate financial statements).
10. Financial assets pledged
as collateral
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Guarantee trust - Government securities at fair value through OCI
|
(1) |
130,597,058 |
|
52,003,019 |
BCRA - Special guarantee accounts (Note 46.1)
|
(2) |
96,926,260 |
|
43,180,603 |
Deposits as collateral |
(3) |
27,964,245 |
|
25,653,204 |
Guarantee trust - USD - Government and Private Securities at fair value through OCI |
(4) |
6,147,179 |
|
23,017,454 |
|
|
|
|
|
TOTAL |
|
261,634,742 |
|
143,854,280 |
| (1) | Set up as collateral to operate with Rosario Futuros Exchange
(ROFEX), Bolsas y Mercados Argentinos S.A. (BYMA) and Mercado Abierto Electrónico S.A. (MAE) on foreign currency forward transactions
and futures contracts. The trust is composed of Treasury Bonds in pesos adjusted by Cer due 2024, 2025 and 2026 (Species T2X4, T2X5 and
TX26). As of December 31, 2022, the trust was composed of species TX23, T2X4, TX24, X19Y3 and X16J3. |
| (2) | Special guarantee current accounts opened at the BCRA for transactions
related to the automated clearing houses and other similar entities. |
| (3) | Deposits pledged as collateral for activities related to credit
card transactions in the country and abroad and leases. |
| (4) | The trust is composed of dollars in cash, Treasury Bonds (TV24D)
and Private Securities (LUC40, PQCOO and PQCHO) as collateral for activities related to the transactions on MAE and BYMA as of December
31, 2023 and dollars in cash as of December 31, 2022. |
11. Income tax
This tax should be booked using the liability method,
recognizing (as credit or debt) the tax effect of temporary differences between the accounting valuation and the tax valuation of assets
and liabilities, and its subsequent allocation to income or loss for the year in which its reversion occurs, also considering the possibility
of taking advantage of tax losses in the future
11.1. Current income tax assets
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Advances (subsidiaries) |
|
160,343 |
|
120,536 |
|
|
160,343 |
|
120,536 |
11.2. Current income tax liabilities
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Income tax provision |
|
195,906,305 |
|
25,250,024 |
Advances |
|
(3,394,693) |
|
(2,375,376) |
Collections and withholdings |
|
(344,774) |
|
(303,709) |
|
|
|
|
|
|
|
192,166,838 |
|
22,570,939 |
11.3. Deferred income tax
The composition and evolution of deferred income tax assets and liabilities
is as follows:
Account |
|
Changes recognized through |
12.31.23 |
As of 12.31.22 |
Profit or loss |
OCI |
Deferred tax asset |
Deferred tax liability |
|
|
|
|
|
|
Allowance for loan losses |
15,671,060 |
(1,911,090) |
- |
13,759,970 |
- |
Provisions |
39,282,173 |
(3,676,895) |
- |
35,605,278 |
- |
Loans and cards commissions |
3,802,371 |
(192,349) |
- |
3,610,022 |
- |
Organizational expenses and others |
(15,175,321) |
(1,773,092) |
- |
- |
(16,948,413) |
Property and equipment and miscellaneous assets |
(40,519,489) |
(1,228,645) |
- |
- |
(41,748,134) |
Debt securities and investments in equity instruments |
(29,650,479) |
113,697,371 |
(101,429,706) |
- |
(17,382,814) |
Derivatives |
- |
- |
- |
- |
- |
Tax inflation adjustment |
7,990,898 |
(6,715,893) |
- |
1,275,005 |
- |
Tax losses |
2,494,579 |
(1,235,912) |
- |
1,258,667 |
- |
Other |
134 |
(82) |
- |
52 |
- |
|
|
|
|
|
|
Balance |
(16,104,074) |
96,963,413 |
(101,429,706) |
55,508,994 |
(76,079,361) |
|
|
|
|
|
|
Offsettings |
|
|
|
(52,663,181) |
52,663,181 |
|
|
|
|
|
|
Net |
|
|
|
2,845,813 |
(23,416,180) |
Account |
|
Changes recognized through |
As of 12.31.22 |
As of 12.31.21 |
Profit or loss |
OCI |
Deferred tax asset |
Deferred tax liability |
|
|
|
|
|
|
Allowance for loan losses |
17,652,100 |
(1,981,040) |
- |
15,671,060 |
- |
Provisions |
24,996,082 |
14,286,091 |
- |
39,282,173 |
- |
Loans and cards commissions |
3,080,653 |
721,718 |
- |
3,802,371 |
- |
Organizational expenses and others |
(13,266,115) |
(1,909,206) |
- |
87 |
(15,175,408) |
Property and equipment and miscellaneous assets |
(85,554,655) |
45,035,166 |
- |
233 |
(40,519,722) |
Debt securities and investments in equity instruments |
(14,801,960) |
(26,700,011) |
11,851,492 |
- |
(29,650,479) |
Derivatives |
79,271 |
(79,271) |
- |
- |
- |
Tax inflation adjustment |
24,024,775 |
(16,033,877) |
- |
7,990,898 |
- |
Tax losses |
925,272 |
1,569,307 |
- |
2,494,579 |
- |
Other |
(89,237) |
89,371 |
- |
134 |
- |
|
|
|
|
|
|
Balance |
(42,953,814) |
14,998,248 |
11,851,492 |
69,241,535 |
(85,345,609) |
|
|
|
|
|
|
Offsettings |
|
|
|
(64,507,656) |
64,507,656 |
|
|
|
|
|
|
Balance |
|
|
|
4,733,879 |
(20,837,953) |
In the consolidated financial statements, the (current
and deferred) income tax assets of a Group entity will not be offset with the (current and deferred) income tax liabilities of another
Group entity because they are related to income tax amounts borne by different taxpayers and also because they do not have legal rights
before tax authorities to pay or receive any amounts to settle the net position.
11.4. Income tax
Below are the main components of the income tax
expense:
|
12.31.23 |
|
12.31.22 |
|
|
|
|
Current income tax expense |
(234,050,852) |
|
(27,213,680) |
Income/(loss) from deferred income tax |
96,963,413 |
|
14,998,248 |
|
|
|
|
Income tax recognized through profit or loss |
(137,087,439) |
|
(12,215,432) |
|
|
|
|
Income tax recognized through OCI |
(101,429,706) |
|
11,851,492 |
|
|
|
|
Total income tax |
(238,517,145) |
|
(363,940) |
The Group's effective tax rate calculated on the
income tax recognized in the income statement for the fiscal year ended December 31, 2023 and 2022 was 45% and 6%, respectively.
The income tax expense for the fiscal year ended
December 31, 2022 includes the effect of the claim filed before AFIP, as stated under “Inflation adjustment for tax purposes. Fiscal
year 2021” in this note.
The income tax expense for the fiscal year ended
December 31, 2023 includes recoveries from judgments for fiscal years 2013 and 2014, as stated under “Requests for refund. Fiscal
years 2013, 2014 and 2015”.
Below is a reconciliation between the tax that would
result from applying the current tax rate on income before income tax and the income tax expense recognized in profit or loss as of December
31, 2023, comparative with the previous year:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Income before income tax |
|
302,026,569 |
|
192,626,427 |
Income tax rate |
|
35% |
|
35% |
|
|
|
|
|
Tax on taxable income |
|
105,709,299 |
|
67,419,249 |
|
|
|
|
|
Permanent differences: |
|
|
|
|
Non-taxable income |
|
(1,852,964) |
|
(462,590) |
Non-income tax deductible expenses |
|
2,544,273 |
|
475,794 |
Effect of tax rate change |
|
(38,678) |
|
(1,620,842) |
Accounting inflation adjustment |
|
403,559,131 |
|
203,165,067 |
Tax inflation adjustment |
|
(357,911,732) |
|
(256,481,087) |
Other |
|
(14,921,890) |
|
(280,159) |
|
|
|
|
|
Income tax expense |
|
137,087,439 |
|
12,215,432 |
11.5. Inflation adjustment for tax purposes
Law No. 27,430 of Tax Reform, as amended by Laws
27,468 and 27,541, sets forth the following as regards the inflation adjustment for tax purposes, effective for fiscal years started on
or after January 1, 2018:
| i. | Such adjustment will be applicable in the fiscal
year in which the percentage variation of the general consumer price index at national level (CPI) exceeds 100% in the thirty-six months
prior to the closing of the fiscal year being settled; |
| ii. | Regarding the first, second and third fiscal
years as from January 1, 2018, the procedure will be applicable in the event that the variation of such index, calculated from the beginning
and until the closing of each of those fiscal years, exceeds 55%, 30% and 15% for the first, second and third year of application, respectively;
|
| iii. | The effect of the positive or negative tax
inflation adjustment, as the case may be, related to the first, second and third fiscal years beginning on January 1, 2018, is allocated
one-third in that fiscal year and the remaining two-thirds, equally, in the two subsequent fiscal years; |
| iv. | The effect of the positive or negative inflation
adjustment corresponding to the first and second tax years starting on or after January 1, 2019, one-sixth must be imputed to the tax
year in which the adjustment is determined and the remaining five-sixths in the immediately following tax periods; and |
| v. | For tax years beginning on or after January
1, 2021, 100% of the adjustment may be deducted in the year in which it is determined. |
As of December 31, 2023, the parameters established
by the income tax law to apply the inflation adjustment for tax purposes are met and the effects arising from the application of such
adjustment as provided by law have been included when booking current and deferred income tax.
11.6. Income tax corporate
rate:
Law No. 27,630, enacted on June 16, 2021 through
Decree No. 387/2021, set forth for fiscal years starting on or after January 1, 2021, a tax rate scale scheme of 25%, 30% and 35% to be
progressively applied according to the level of taxable net income accumulated as of each fiscal year end. In these financial statements,
the Entity and its subsidiaries have determined current income tax using the tax rate applicable to the total expected income for the
year, while deferred income tax balances were measured using the progressive tax rate that is expected to be in effect when the temporary
differences are reversed.
11.7. Other tax matters
- Inflation adjustment for
tax purposes. Fiscal years 2016, 2017 and 2018.
On May 10, 2017, May 10, 2018 and May 13, 2019,
and based on related case law, the Entity’s Board of Directors approved the filing of actions for declaratory judgment of unconstitutionality
of section 39 of Law No. 24.073, section 4 of Law No. 25.561, section 5 of Decree No. 214/02 issued by the Argentine Executive, Law No.
27.468 and any other regulation whereby the inflation adjustment mechanism provided for under Law No. 20.628, as amended, is considered
not applicable due to the confiscatory effect in the specific case, for fiscal years 2016, 2017 and 2018. Consequently, the Entity filed
its income tax returns for those fiscal years taking into consideration the effect of those restatement mechanisms.
The net impact of this measure on nominal values
was an adjustment to the income tax assessed for the fiscal year ended December 31, 2016 in the amount of 1,185,800 (in nominal values),
for fiscal year ended December 31, 2017, in the amount of 1,021,519 (in nominal values), and for fiscal year ended December 31, 2018,
in the amount of 3,239,760 (in nominal values).
Through Memorandum No. 6/2017 dated May 29, 2017,
the BCRA, without resolving on the decisions adopted by the Entity's authorities or the Entity's right regarding the action filed, in
its capacity as issuer of accounting standards, requested the Entity to record a provision for contingencies included in “Liabilities”
in an amount equivalent to the income recorded, as it considers that “a reassessment of the income tax by applying the inflation
adjustment is not contemplated by the BCRA regulations”.
In response to this Memorandum, the Entity filed
the related answer and confirmed its position by providing the relevant supporting documentation. Notwithstanding the foregoing, the Entity
recorded the requested provision, pursuant to the accounting standards prescribed by the regulator for this case.
On June 8, 2020, the Federal Court on Administrative
Matters (JCAF 12-23) ruled upon the action for declaratory judgment filed on May 12, 2017, upholding the complaint and thus declaring
that the prohibition to apply the inflation adjustment mechanism for the purposes of the income tax return filed by the Bank for fiscal
year 2016 is not applicable to the instant case.
The appeals filed against the judgment were granted
on August 6, 2020, and the case was submitted to the Appellate Court for consideration. On December 9, 2020, the Federal Appellate Court
on Administrative Matters (Courtroom II) dismissed the appeals, thus confirming the judgment rendered by the court of original jurisdiction.
The tax authority Administración Federal de Ingresos Públicos (“AFIP” or the “Tax Authority” or
the “National Tax Authority”) filed an extraordinary appeal against the judgment, but then withdrew it through a motion filed
on February 1, 2021.
In addition, the Bank reversed the provision set
up for fiscal year 2016 at the request of the BCRA, recognizing a benefit in the first quarter of 2021 in the amount of 1,185,800 in nominal
values (9,612,210 in values restated as of December 31, 2023).
On June 14, 2021, the Court of First Instance rendered
judgment in respect of the action for declaratory judgment of unconstitutionality for fiscal year 2017 in favor of the Bank’s position.
After appealing the judgment to the Appellate Court, the Bank filed the basis for the appeal but on September 3, 2021 the tax authority
filed a brief withdrawing the appeal filed. Although the Appellate Court did not accept the withdrawal because the documentation submitted
did not fulfill the necessary conditions, since no basis for the appeal was finally filed, we understand that the appeal will be declared
void.
On September 30, 2021, the Court determined that
the proceedings were set for the agreement to be entered. On November 2, 2021, AFIP filed a motion ratifying the withdrawal of the appeal
filed with respect to the merits of the case. On November 3, 2021 the Court ordered to proceed with the case for an agreement to be entered.
Finally, on May 10, 2022, the Appellate Court considered that AFIP had withdrawn its appeal with respect to the judgment on the merits.
On June 25, 2021, the Bank notified the BCRA about
the reversal of the provision set up pursuant to Memorandum No. 6/2017 issued by the BCRA concerning the income tax reassessment due to
the inflation adjustment for tax purposes for fiscal years 2017 and 2018 for a total amount of 4,261,279 in nominal values (31,132,481
in values restated as of December 31, 2023), since, based on the assessment made and on its legal and tax advisors’ opinion, the
Entity believes that it is more probable than not that it will obtain a favorable final judgment in respect of these fiscal years. The
Entity notified the BCRA of the criteria adopted, to which the BCRA gave its consent.
On October 5, 2022, the Federal Contentious Administrative
Trial Court No. 2 issued a favorable decision on the unconstitutionality action filed with respect to the regulations banning the application
of title VI of the adjustment for inflation in the 2018 income tax return. After appealing the judgment, on November 17, 2022, we filed
a brief stating grievances in connection with legal costs, and on November 27, 2022, AFIP filed its brief.
On July 11, 2023, the decision issued by Room I
of the Federal Court of Appeals in Contentious and Administrative Matters confirming the trial court decision in favor of the Bank was
notified. On August 8, 2023, AFIP filed an extraordinary appeal, which was partially granted.
On September 19, 2023, the Appellate Court granted
the extraordinary appeal in part and sent it to the Argentine Supreme Court of Justice. At present, the appeals filed by AFIP are pending
resolution by the Argentine Supreme Court of Justice.
Based on the foregoing, as of December 31, 2023,
the Entity has no liabilities for the items referred to above.
- Inflation adjustment for
tax purposes. Fiscal year 2019
As concerns fiscal year 2019,
the Entity assessed its income tax liability applying the inflation adjustment for tax purposes according to the terms of the Public Emergency
Law, which maintains the inflation adjustment mechanism set out under Title VI of the Income Tax Law. Nevertheless, one sixth of the resulting
inflation adjustment amount should be recognized during that fiscal year, with the remaining five sixths being computed, in equal parts,
over the five immediately following fiscal years. Such deferral has been recognized as a deferred tax asset.
On August 21, 2020, the Bank filed a request for
refund at the administrative stage pursuant to the provisions of the first paragraph of section 81 of Law No. 11683 (as compiled in 1998
and as amended) to recover the amount of 4,528,453 (in nominal values).
Upon no response from the tax authorities, on June
17, 2021 the Entity filed a motion for expedited proceedings and on November 18, 2021 a legal action was filed before National Court on
Federal Administrative Matters No. 10 (Court Clerk’s Office No. 24).
Pursuant to the financial reporting framework set
forth by the BCRA, the Entity does not record assets in relation to contingent assets derived from the action filed.
- Inflation adjustment for
tax purposes. Fiscal year 2020
In relation to fiscal year 2020, the Entity determined
the income tax as of December 31, 2020 by applying the inflation adjustment for tax purposes in accordance with the provisions of the
Public Emergency Law.
On May 26, 2021, and based on related case law,
the Entity’s Board of Directors approved the filing of an action against the federal tax authorities (AFIP-DGI) for declaratory
judgment of unconstitutionality of section 194 of the Income Tax Law (as compiled in 2019) and/or of such rules that prohibit the full
application of the inflation adjustment for tax purposes, on the grounds that they would lead to the assessment of a confiscatory income
tax liability for fiscal year 2020; therefore allowing the full application of the mechanism set forth in section 106, paragraphs a) through
e), Title VI of the Income Tax Law in that fiscal year.
Consequently, as of December 31, 2021, the Entity
accounted for an adjustment in nominal values to the income tax liability assessed for the fiscal year ended December 31, 2020 in the
amount of 5,817,000 (51,991,114 in restated values), with the ensuing impact on deferred tax assets by 5,033,000 (decrease) (46,082,862
in restated values) and on the income tax expense of 784,000 (5,908,256 in restated values).
On August 15, 2023,
a trial court decision sustaining the claim filed by the Bank was issued. On August 22, 2023, we filed an appeal against the imposition
of legal costs, requiring that they be imposed on the losing party. On August 23, 2023, AFIP appealed the merits of the case, requiring
the revocation of the judgment.
- Inflation adjustment for
tax purposes. Fiscal year 2021
On June 30, 2022, the Bank filed a prior administrative
claim before the AFIP in order to obtain the recognition of the corrective tax return in less filed on June 30, 2022 with respect to the
Income Tax for the 2021 tax year for 309,000 (in nominal values), on the grounds that the partial application of the correction mechanisms
of the inflation adjustment under the provisions of Section 93 of the Income Tax Law is unconstitutional, since it affects the principle
of reasonableness, equality, contributive capacity and confiscatory nature.
On June 6, 2023, a prompt resolution was requested.
In view of the AFIP's silence, on September 20, 2023, a claim was filed before the Federal Court on Contentious Administrative Matters
No. 1, Clerks’ Office No. 1.
- Inflation adjustment for
tax purposes. Fiscal year 2022
On June 2, 2023, the Bank filed an unconstitutionality
action against the AFIP-DGI to obtain a ruling declaring the unconstitutionality of section 93 of Income Tax Law (as revised in 2019)
or other regulations preventing the comprehensive application of the tax adjustment for inflation, as it leads to a confiscatory income
tax assessment for 2022 and, consequently, allows for the comprehensive adoption of the cost and amortization adjustment method provided
for by sections 62 through 66, 71, 87 and 88 of Income Tax Law.
On June 6, 2023, Court No. 9 forwarded the proceedings
to the prosecutor's office to rule on jurisdiction. Once the prosecutor's opinion was submitted on June 8, the Court declared its jurisdiction.
- Requests for refund. Fiscal
years 2013, 2014 and 2015
Regarding fiscal years 2013, 2014 and 2015, the
Entity assessed income tax without applying the inflation adjustment for tax purposes, consequently a higher tax was paid in the amounts
of 264,257, 647,945 and 555,002, respectively, in nominal values.
Based on grounds similar to those stated in the
first paragraph “Inflation Adjustment for Tax Purposes. Fiscal Years 2016, 2017 and 2018,” on November 19, 2015, an administrative
action requesting a refund for fiscal years 2013 and 2014 was filed, and the related judicial action was filed on September 23, 2016 for
both fiscal years, given that no answer was received from AFIP.
In turn, on April 4, 2017, a request for refund
was filed in relation to the higher amount of tax paid for fiscal year 2015. Likewise, on December 29, 2017, the related judicial action
was filed for this fiscal year.
On October 21, 2020, the Entity was notified that
Court of First Instance on Administrative Matters No. 1 rendered judgment upholding the request for refund for fiscal year 2014. AFIP
filed an appeal against such judgment before the Appellate Court.
On November 10, 2020, the Court of First Instance
rendered judgment sustaining BBVA Argentina's complaint, thereby ordering the tax authorities to refund the amount of 264,257 (nominal
values) paid in excess of the income tax liability for fiscal year 2013, plus accrued interest. The National Tax Authority filed an appeal
against the judgment. Finally, on May 6, 2021, the Federal Appellate Court on Administrative Matters (Courtroom I) confirmed the appealed
judgment on the merits, therefore dismissing the appeal brought by the national tax authorities.
On April 27, 2021, the Appellate Court rendered
judgment in favor of the Bank concerning the refund of income tax for fiscal year 2014. In its judgment, the Appellate Court substantially
confirmed the judgment rendered by the Court of First Instance on the merits, upholding the confiscatory nature of the tax.
The National Tax Authority brought extraordinary
appeals against both judgments, and the Appellate Court has rejected such appeal with respect to the claims of arbitrariness and serious
institutional implications.
On June 28, 2022, the Federal Appellate Court on
Administrative Matters (Courtroom VII) rendered judgment in favor of the Bank as regards the recovery of the income tax for tax period
2015 and AFIP appealed such judgment.
On July 12, 2023, the Bank was notified of the decision
issued by the Argentine Supreme Court of Justice with respect to the 2014 tax period rejecting the extraordinary appeal and the appeal
filed by Tax Authorities. Thus, the favorable decisions issued by previous courts recognizing a 647,946 reimbursement (in nominal values)
for such period plus the interest calculated in accordance with the weighted average deposit interest rate published by the BCRA became
final. Such calculation was filed.
On August 7, 2023, we were notified of the decision
issued by the Argentine Supreme Court of Justice with respect to the 2013 tax period rejecting the extraordinary appeal and the appeal
filed by Tax Authorities, thus rendering the decisions issued by previous court instances final. Those decisions recognized that the Bank
should be reimbursed 264,257 (in nominal values) for such period plus interest, and determined that the BCRA weighted average deposit
interest rate should be applied until July 31, 2019, and the monthly effective rate published by the AFIP in compliance with Ministry
of Finance 598/19, as from August 1, 2019, and until the actual payment is made. The calculation was filed.
With respect to the 2013 tax period, on December
27, 2023, the AFIP deposited in a bank account of the Entity the amount of 1,037,484, corresponding to 264,257 as principal and 773,227
as restatement of principal and interest.
As a result of the abovementioned favorable judgments
of the Argentine Supreme Court of Justice, and the collection of one of said cases, the Entity has accounted for receivables for 8,083,923
as of December 31, 2023.
On October 25, 2023, the Appellate Court rendered
favorable judgment in the case relating to the request for refund of the Income Tax due to the application of the tax inflation adjustment
in 2015, confirming the first instance judgment.
Both AFIP and the Entity have filed extraordinary
appeals. At present, the case file is pending resolution of the appeals filed.
12. Investments in equity instruments
12.1. Investments in equity
instruments through profit or loss
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Private securities - Shares of other non-controlled companies
|
|
3,225,936 |
|
2,733,766 |
|
|
|
|
|
TOTAL |
|
3,225,936 |
|
2,733,766 |
12.2. Investments in equity
instruments through other comprehensive income
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Compensadora Electrónica S.A. |
|
891,784 |
|
181 |
Mercado Abierto Electrónico S.A. |
|
511,816 |
|
59 |
Banco Latinoamericano de Exportaciones S.A. |
|
404,468 |
|
180,694 |
Seguro de Dépositos S.A. |
|
144,254 |
|
268 |
Other |
|
32,672 |
|
7,099 |
|
|
|
|
|
TOTAL |
|
1,984,994 |
|
188,301 |
13. Investments in associates
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
BBVA Seguros Argentina S.A. |
|
4,710,065 |
|
3,728,002 |
Rombo Compañía Financiera S.A. |
|
3,077,455 |
|
2,317,504 |
Interbanking S.A. |
|
2,110,363 |
|
2,565,912 |
Play Digital S.A.(1) |
|
1,953,029 |
|
1,515,211 |
Openpay Argentina S.A.(2) |
|
515,320 |
|
671,083 |
|
|
|
|
|
TOTAL |
|
12,366,232 |
|
10,797,712 |
| (1) | In order to determine the value of this investment,
the accounting information of Play Digital S.A. as of September 30, 2023 has been used. In addition, the significant transactions made
or events occurred between October 1 and December 31, 2023 were considered. |
| (2) | On April 19, 2023, 29,205 (in nominal values) shares were subscribed for
and paid in in cash. |
14. Property and equipment
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Real estate |
|
222,508,262 |
|
220,508,196 |
Furniture and facilities |
|
38,340,588 |
|
39,763,849 |
Right of use of leased real estate |
|
24,340,475 |
|
18,235,014 |
Machinery and equipment |
|
7,886,204 |
|
9,712,120 |
Construction in progress |
|
4,079,775 |
|
10,183,431 |
Vehicles |
|
1,062,464 |
|
872,053 |
|
|
|
|
|
TOTAL |
|
298,217,768 |
|
299,274,663 |
The breakdown of lease assets and liabilities as
well as interest and foreign exchange differences recognized in profit or loss is disclosed in Note 25 to these consolidated financial
statements.
Based on the reports prepared by the independent
appraiser relied upon by the Bank to assess the impairment of its property, the carrying amount of certain pieces of real estate exceeds
its recoverable value. Therefore, such amount should be written down to the recoverable value.
The impairment of assets recorded under the item
“Property and equipment” is reported below:
Account |
|
Impairment |
|
|
12.31.2023 |
|
12.31.2022 |
|
|
|
|
|
Real estate - Lavallol |
|
(45,851) |
|
(66,958) |
Real estate - Monte Grande |
|
(39,227) |
|
(298,230) |
Real estate - Caleta Olivia, Santa Cruz |
|
- |
|
(74,473) |
Real estate - Cerro Las Rosas |
|
(72,545) |
|
(155,386) |
Real estate - Libertador |
|
(581,844) |
|
(1,091,829) |
Real estate - Store 1 Puerto Madero |
|
(299,904) |
|
(412,880) |
Real estate - Store 5 Puerto Madero |
|
(220,169) |
|
(257,704) |
Real estate - Mar del Plata |
|
(70,756) |
|
(30,231) |
Real estate - Bahía Blanca |
|
(14,750) |
|
(32,511) |
Real estate - La Plata |
|
(41,511) |
|
- |
Real estate - Balvanera |
|
(715,099) |
|
- |
|
|
|
|
|
TOTAL |
|
(2,101,656) |
|
(2,420,202) |
The changes in this item for the years 2023 and
2022 are reported in Exhibit “F”.
15. Intangible assets
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Own systems development expenses |
|
33,137,494 |
|
29,949,642 |
|
|
|
|
|
TOTAL |
|
33,137,494 |
|
29,949,642 |
The changes in this item for the years 2023 and
2022 are reported in Exhibit “G”.
16. Other non-financial assets
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Investment properties |
|
60,152,864 |
|
61,464,170 |
Prepayments |
|
12,331,086 |
|
11,108,553 |
Advances to personnel |
|
8,507,271 |
|
4,974,194 |
Tax advances |
|
7,549,348 |
|
7,929,208 |
Advances to suppliers of goods |
|
6,602,413 |
|
2,805,346 |
Other miscellaneous assets |
|
1,148,750 |
|
1,552,687 |
Assets acquired as security for loans |
|
79,042 |
|
82,024 |
Other |
|
7,873,767 |
|
833,964 |
|
|
|
|
|
TOTAL |
|
104,244,541 |
|
90,750,146 |
Investment properties include pieces of real estate
leased to third parties. The average term of lease agreements is 6 years. Subsequent renewals are negotiated with the lessee. The Group
has classified these leases as operating leases, since these arrangements do not substantially transfer all risks and benefits inherent
to the ownership of the assets. The rental income is recognized under “Other operating income” on a straight-line basis during
the term of the lease.
The impairment of assets booked in Investment properties
under non-financial assets is as follows:
Account |
|
Impairment |
|
|
12.31.2023 |
|
12.31.2022 |
|
|
|
|
|
Leased real estate - Viamonte |
|
(238,314) |
|
- |
|
|
|
|
|
TOTAL |
|
(238,314) |
|
- |
|
|
|
|
|
The changes in investment property for the years
2023 and 2022 are reported in Exhibit “F”.
17. Non-current assets held
for sale
It includes pieces of real estate located in the
Argentine Republic, which the Bank’s Board of Directors agreed to sell in the short term.
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Real Estate held for sale- Fisherton |
|
478,476 |
|
453,724 |
Real Estate held for sale- Bernal |
|
92,503 |
|
92,503 |
Real Estate held for sale- Mendoza |
|
155,915 |
|
154,682 |
Real Estate held for sale- Villa Lynch |
|
125,301 |
|
- |
|
|
|
|
|
TOTAL |
|
852,195 |
|
700,909 |
For further information see note 2.3.11 of Significant accounting policies.
Based on the reports prepared by the independent
appraiser relied upon by the Bank to assess the impairment of its property as of the end of the previous fiscal year, the carrying amount
of one piece of real estate exceeds its recoverable value. Therefore, such amount should be written down to the recoverable value.
The impairment of non-current assets held for sale
is as follows:
Account |
|
Impairment |
|
|
12.31.2023 |
|
12.31.2022 |
|
|
|
|
|
Real Estate held for sale- Fisherton |
|
(247,694) |
|
(272,440) |
Real Estate held for sale- Mendoza |
|
- |
|
(1,233) |
|
|
|
|
|
TOTAL |
|
(247,694) |
|
(273,673) |
18. Deposits
The information on concentration of deposits is disclosed in Exhibit
H. Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Non-financial Government sector |
|
34,033,530 |
|
30,144,496 |
Financial Sector |
|
2,573,134 |
|
1,058,807 |
Non-financial Private Sector and Residents Abroad |
|
3,602,699,996 |
|
4,060,109,133 |
Savings accounts |
|
1,720,155,659 |
|
1,554,031,357 |
Checking accounts |
|
913,661,955 |
|
789,303,857 |
Time deposits |
|
759,922,833 |
|
1,291,627,672 |
Investment accounts |
|
182,126,911 |
|
392,200,392 |
Other |
|
26,832,638 |
|
32,945,855 |
|
|
|
|
|
TOTAL |
|
3,639,306,660 |
|
4,091,312,436 |
19. Liabilities at fair value
through profit or loss
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Liabilities for transactions with government securities |
|
10,330,335 |
|
- |
|
|
|
|
|
TOTAL |
|
10,330,335 |
|
- |
20. Other financial liabilities
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Obligations from financing of purchases |
|
281,206,479 |
|
257,172,322 |
Funds collected under AFIP’s instructions |
|
73,877,385 |
|
14,575,775 |
Collections and other transactions on behalf of third parties |
|
40,802,915 |
|
26,246,841 |
Lease liabilities (Note 25) |
|
23,508,830 |
|
12,850,898 |
Payment orders pending credit |
|
14,300,578 |
|
20,326,913 |
Receivables from spot purchases pending settlement |
|
768,640 |
|
12,153,944 |
Credit balance for spot purchases or sales pending settlement |
|
340,320 |
|
8,273,819 |
Commissions accrued payable |
|
12,852 |
|
127,187 |
Other |
|
13,440,451 |
|
17,077,731 |
|
|
|
|
|
TOTAL |
|
448,258,450 |
|
368,805,430 |
21. Financing received from the
BCRA and other financial institutions
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Local financial institutions |
|
25,408,573 |
|
59,869,301 |
Foreign financial institutions |
|
2,672,067 |
|
1,742,790 |
BCRA |
|
109,327 |
|
274,027 |
|
|
|
|
|
TOTAL |
|
28,189,967 |
|
61,886,118 |
22. Corporate bonds issued
As of December 31, 2023 and December 31, 2022, the
balances related to corporate bonds of the Bank and its subsidiaries were as follows:
Detail |
|
Issuance date |
|
Nominal value |
|
Maturity |
|
Rate |
|
Payment of interest |
|
Outstanding securities as of 12.31.23 |
|
Outstanding securities as of 12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class 8 Volkswagen Financial Services |
|
09/30/2020 |
|
- |
|
03/30/2023 |
|
UVA (class 8 ) |
|
Quarterly |
|
- |
|
186,843 |
Class 10 Volkswagen Financial Services |
10/12/2023 |
|
10,000,000 |
10/12/2024 |
Badlar + 4.5 (class 10) |
Quarterly |
|
10,000,000 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consolidated Principal |
|
10,000,000 |
|
186,843 |
|
|
|
|
|
|
|
|
Consolidated Interest / Adjustments payable |
|
2,816,710 |
|
408,511 |
|
|
|
|
|
|
|
|
Total Consolidated Principal and Interest / Adjustments Accrued |
|
12,816,710 |
|
595,354 |
Definitions
UVA RATE: An interest rate with a variable component
(UVA), which represents a measurement unit adjusted on a daily basis as per CER, reflecting the changes in inflation based on the Consumer
Price Index (CPI).
BADLAR RATE: Interest rate for deposits over 1 (one)
million pesos, for a term of 30 to 35 days.
23.
Provisions
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Provision for contingent commitments (Exhibits J and R) |
|
5,972,370 |
|
8,389,890 |
Provisions for termination plans (Exhibit J) |
|
770,101 |
|
1,413,835 |
For administrative, disciplinary and criminal penalties (Note 51 and Exhibit J) |
|
5,000 |
|
15,570 |
Other contingencies (Exhibit J) |
|
13,976,292 |
|
17,177,861 |
Provision for commercial lawsuits |
|
9,050,746 |
|
10,887,030 |
Provision for tax lawsuits |
|
1,930,268 |
|
1,852,273 |
Provision for labor lawsuits |
|
912,890 |
|
1,914,601 |
Other |
|
2,082,388 |
|
2,523,957 |
|
|
|
|
|
TOTAL |
|
20,723,763 |
|
26,997,156 |
It includes the estimated amounts to pay highly
likely liabilities which, in case of occurrence, would generate a loss for the Entity.
The breakdown of and changes in provisions recognized
for accounting purposes are included in Exhibit J. However, below is a brief description:
| - | Contingent commitments: it reflects
the credit risk arising from the assessment of the degree of compliance of the beneficiaries of unused overdrafts, unused credit card
balances, guarantees, sureties and other contingent commitments for the benefit of third parties on behalf of customers, and of their
financial position and the counter guarantees supporting those transactions. |
| - | Termination benefit plans: for certain
terminated employees, the Bank (fully or partially) bears the cost of private health care plans for a certain period after termination.
The Bank does not cover any situations requiring medical assistance, but it only makes the related health care plan payments. |
| - | Administrative, disciplinary and criminal
penalties: administrative penalties imposed by the Financial Information Unit, even if there were court or administrative measures
to suspend payment and regardless of the status of the disciplinary proceedings. |
| - | Other: it reflects the estimated amounts
to pay tax, labor and commercial claims and miscellaneous complaints. |
The Group considers that the provisions as of December
31, 2023 will originate the following cash disbursements:
Provisions |
|
Within 12 months |
After 12 months |
|
|
|
|
|
|
|
|
Provision for contingent commitments |
|
5,972,370 |
- |
Provisions for termination plans |
|
608,377 |
161,724 |
For administrative, disciplinary and criminal penalties |
|
- |
5,000 |
Other contingencies |
|
9,916,733 |
4,059,559 |
Provision for commercial lawsuits |
|
8,220,748 |
829,998 |
Provision for tax lawsuits |
|
834,422 |
1,095,846 |
Provision for labor lawsuits |
|
183,691 |
729,199 |
Other |
|
677,872 |
1,404,516 |
In the opinion of the Group’s Management and
its legal advisors, there are no significant effects other than those stated in these consolidated financial statements, the amounts and
repayment terms of which have been recorded based on the current value of those estimates, considering the probable date of their final
resolution.
Contingent liabilities have not been recognized
in these consolidated financial statements and are related to 137 claims brought against the Bank, including civil and commercial claims,
all of which have arisen in the ordinary course of business. The estimated amount of such claims is 168,338, out of which a potential
cash disbursement of approximately 142,601 is expected for the next 12 months. These claims are primarily related to lease-purchase agreements
and petitions to secure evidence. The Group's Management and legal advisors consider that the probability that these cases involve cash
disbursements is possible but not probable and that the potential cash disbursements are not material.
24. Other non-financial liabilities
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Miscellaneous creditors |
|
128,061,537 |
|
118,403,107 |
Short-term personnel benefits |
|
61,020,467 |
|
54,447,943 |
Advances collected |
|
49,301,721 |
|
61,133,593 |
Other collections and withholdings |
|
41,984,520 |
|
54,506,264 |
Other taxes payable |
|
34,105,197 |
|
22,043,383 |
Long-term personnel benefits |
|
3,194,628 |
|
2,853,328 |
For contract liabilities |
|
1,703,110 |
|
1,400,224 |
Termination benefits payable |
|
1,161,537 |
|
2,794,954 |
Social security payment orders pending settlement |
|
370,937 |
|
955,007 |
Cash dividends payable (Note 43) |
|
- |
|
46,196,400 |
Other |
|
2,114,519 |
|
1,767,238 |
|
|
|
|
|
TOTAL |
|
323,018,173 |
|
366,501,441 |
25. Leases
The Group as lessee
Below is a detail of the amounts related to the
rights of use under leases and lease liabilities in force as of December 31, 2023:
Rights of use under leases
The changes in this item for the years 2023 and
2022 are reported in Exhibit F.
Lease liabilities
Future minimum payments for lease agreements are
as follows:
|
|
In foreign currency |
|
In local currency |
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
|
|
|
|
Up to one year |
|
1,132,081 |
|
90,698 |
|
1,222,779 |
|
962,674 |
|
|
|
|
|
|
|
|
|
From 1 to 5 years |
|
16,889,173 |
|
689,136 |
|
17,578,309 |
|
9,830,237 |
|
|
|
|
|
|
|
|
|
More than 5 years |
|
4,495,220 |
|
212,522 |
|
4,707,742 |
|
2,057,987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,508,830 |
|
12,850,898 |
Interest and exchange rate difference recognized in
profit or loss
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Other operating expenses |
|
|
|
|
|
|
|
|
|
Interest on lease liabilities (Note 38) |
|
(1,699,151) |
|
(1,935,792) |
|
|
|
|
|
Exchange rate difference |
|
|
|
|
|
|
|
|
|
Exchange rate difference for finance lease (loss) |
|
(25,883,804) |
|
(12,895,722) |
26. Share capital
Breakdown is as follows:
Shares |
|
Share capital |
Class |
Quantity |
Par value per share |
Votes per share |
|
Outstanding shares |
|
Paid-in (1) |
Common |
612,710,079 |
1 |
1 |
|
612,710 |
|
612,710 |
(1)
Registered with the Public Registry of Commerce.
Banco BBVA Argentina S.A. is a corporation (sociedad
anónima) incorporated under the laws of Argentina. The shareholders limit their liability to the shares subscribed and paid in,
pursuant to the Argentine Companies Law (Law No. 19550). Therefore, and pursuant to Law No. 25.738, it is reported that neither foreign
capital majority shareholders nor local or foreign shareholders shall be liable in excess of the above-mentioned capital contribution
for obligations arising from transactions carried out by the Bank.
| - | Additional paid-in capital |
The additional paid-in capital account represents
the difference between the nominal value of the shares issued and the subscription price.
| - | Inflation adjustment to share capital |
Includes the cumulative monetary inflation adjustment
to share capital and additional paid-in capital.
| - | Other comprehensive income/(loss) (OCI) |
| – | Income/(loss) from financial
assets measured at fair value through OCI: It comprises the accumulated net change in the fair value of financial assets measured
at fair value through OCI, net of the related income tax. |
| – | Other: This item represents the Bank’s
participation in its associates’ and joint ventures’ OCI. |
B.C.R.A. regulations establish that 20% of
net income determined in accordance with B.C.R.A. Generally Accepted Accounting Principles must be allocated to the legal reserve. (see
note 43 a)).
Set up to comply with the CNV requirement whereby
all the retained earnings assessed under BCRA regulations must be allocated by the stockholders' meeting to cash dividends, stock dividends,
the constitution of reserves other than the legal reserve, or a combination thereof. This item is composed of the following:
| – | Optional reserve: it includes all the
other reserves set up by the express will of the Entity. |
| – | Reserve for first-time application of IFRS:
originated in the valuation differences of assets and liabilities in accordance with international financial reporting standards at the
time of initial adoption. |
27. Interest income
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
Interest on government securities |
|
|
1,148,563,753 |
|
|
798,761,165 |
Premiums on reverse repurchase agreements |
|
|
388,218,226 |
|
|
99,209,289 |
Stabilization Coefficient (CER) clause adjustments |
|
|
378,917,667 |
|
|
255,612,556 |
Interest on instruments |
|
|
332,571,766 |
|
|
123,306,207 |
Interest on credit card loans |
|
|
280,546,581 |
|
|
194,999,904 |
Interest on overdrafts |
|
|
175,982,067 |
|
|
89,584,141 |
Interest on other loans |
|
|
169,865,129 |
|
|
138,280,663 |
Interest on consumer loans |
|
|
130,268,098 |
|
|
99,886,476 |
Acquisition Value Unit (UVA) clause adjustments |
|
|
111,676,303 |
|
|
97,727,166 |
Interest on pledge loans |
|
|
36,795,436 |
|
|
33,043,342 |
Interest on finance leases |
|
|
9,455,935 |
|
|
6,140,145 |
Interest on mortgage loans |
|
|
6,461,673 |
|
|
9,474,404 |
Interest on loans to the financial sector |
|
|
6,405,275 |
|
|
7,770,983 |
Interest on private securities |
|
|
3,463,339 |
|
|
2,064,035 |
Interest on loans for the prefinancing and financing of exports |
|
|
2,404,576 |
|
|
2,260,264 |
Interest on cash and deposits in banks |
|
|
4,560 |
|
|
- |
Other |
|
|
2,346,272 |
|
|
1,710,489 |
|
|
|
|
|
|
|
TOTAL |
|
|
3,183,946,656 |
|
|
1,959,831,229 |
28. Interest expense
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
Time deposits |
|
|
1,163,622,989 |
|
|
666,796,740 |
Checking accounts deposits |
|
|
311,542,572 |
|
|
123,516,353 |
Acquisition Value Unit (UVA) clause adjustments |
|
|
42,734,378 |
|
|
78,198,789 |
Interfinancial loans received |
|
|
25,305,718 |
|
|
27,087,785 |
Savings accounts deposits |
|
|
7,156,496 |
|
|
4,995,724 |
Other liabilities from financial transaction |
|
|
4,614,829 |
|
|
2,097,053 |
Premiums on reverse repurchase transactions |
|
|
24,987 |
|
|
83,678 |
Other |
|
|
13,162 |
|
|
19,379 |
|
|
|
|
|
|
|
TOTAL |
|
|
1,555,015,131 |
|
|
902,795,501 |
29. Commission income
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
From credit cards |
|
|
117,069,255 |
|
|
103,133,791 |
Linked to liabilities |
|
|
84,330,593 |
|
|
105,117,264 |
Linked to loans |
|
|
25,720,503 |
|
|
20,710,903 |
From foreign trade and foreign currency transactions |
|
|
10,834,946 |
|
|
10,966,990 |
From insurance |
|
|
9,635,209 |
|
|
10,964,732 |
Linked to securities |
|
|
6,693,634 |
|
|
2,826,789 |
Linked to loan commitments |
|
|
407,453 |
|
|
- |
From guarantees granted |
|
|
105,462 |
|
|
11,067 |
|
|
|
|
|
|
|
TOTAL |
|
|
254,797,055 |
|
|
253,731,536 |
30. Commission expenses
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
From credit and debit cards |
|
|
68,231,997 |
|
|
78,562,270 |
For foreign trade transactions |
|
|
18,507,530 |
|
|
3,068,814 |
For payment of salaries |
|
|
11,377,644 |
|
|
7,949,763 |
For new channels |
|
|
6,040,571 |
|
|
4,035,490 |
For data processing |
|
|
4,380,614 |
|
|
4,764,409 |
For advertising campaigns |
|
|
1,013,711 |
|
|
805,301 |
For digital sales services |
|
|
260,968 |
|
|
186,930 |
Linked to transactions with securities |
|
|
67,420 |
|
|
48,894 |
For promotions |
|
|
12,280 |
|
|
- |
Other commission expenses |
|
|
5,948,971 |
|
|
8,749,787 |
|
|
|
|
|
|
|
TOTAL |
|
|
115,841,706 |
|
|
108,171,658 |
31. Net income (loss) from measurement
of financial instruments at fair value through profit or loss
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
Income from foreign currency forward transactions |
|
|
23,533,993 |
|
|
4,646,318 |
Income from private securities |
|
|
4,050,230 |
|
|
4,782,694 |
Income from corporate bonds |
|
|
1,373,985 |
|
|
61,172 |
Income from sale or write-off of financial assets(1) |
|
|
- |
|
|
13,666,592 |
Income/(loss) from interest rate swaps |
|
|
(177,777) |
|
|
314,816 |
Loss from put options taken |
|
|
(522,183) |
|
|
(107,924) |
Income/(loss) from government securities |
|
|
(52,246,889) |
|
|
33,256,761 |
Other |
|
|
171 |
|
|
(16,442) |
|
|
|
|
|
|
|
TOTAL |
|
|
(23,988,470) |
|
|
56,603,987 |
| (1) | Corresponds to the sale of 49% of Prisma Medios
de Pago S.A.’s capital stock. On March 18, 2022 the transfer of all the remaining shareholding of the Bank in such company was consummated. |
32. Net income from write-down
of assets at amortized cost and at fair value through OCI
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
Income from sale of government securities |
|
|
33,186,455 |
|
|
676,393 |
Income from sale of private securities |
|
|
7,404,167 |
|
|
226,523 |
|
|
|
|
|
|
|
TOTAL |
|
|
40,590,622 |
|
|
902,916 |
33. Foreign exchange and gold
gains/(losses)
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
Conversion of foreign currency assets and liabilities into pesos |
|
|
170,534,409 |
|
|
(13,756,414) |
Income from purchase-sale of foreign currency |
|
|
39,575,648 |
|
|
38,908,589 |
|
|
|
|
|
|
|
TOTAL |
|
|
210,110,057 |
|
|
25,152,175 |
34. Other operating income
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
Adjustments and interest on miscellaneous receivables |
|
|
27,530,770 |
|
|
21,267,898 |
Rental of safe deposit boxes |
|
|
8,069,353 |
|
|
9,109,074 |
Loans recovered |
|
|
6,885,829 |
|
|
10,469,204 |
Debit and credit card commissions |
|
|
4,706,692 |
|
|
4,740,075 |
Punitive interest |
|
|
2,580,777 |
|
|
1,493,754 |
Rent |
|
|
2,407,625 |
|
|
1,903,284 |
Fees expenses recovered |
|
|
2,339,878 |
|
|
2,569,661 |
Allowances reversed |
|
|
1,336,580 |
|
|
2,297,456 |
Commission from syndicated transactions |
|
|
930,941 |
|
|
821,453 |
Income from sale of non-current assets held for sale (Note 17) |
|
|
- |
|
|
1,420,141 |
Income from asset sale in equity instruments(1) |
|
|
- |
|
|
4,719,308 |
Other operating income |
|
|
10,459,472 |
|
|
5,088,987 |
|
|
|
|
|
|
|
TOTAL |
|
|
67,247,917 |
|
|
65,900,295 |
| (1) | Corresponds to the sale of 49% of Prisma Medios de Pago S.A.’s
capital stock. On March 18, 2022 the transfer of all the remaining shareholding of the Bank in such company was consummated. |
35. Personnel benefits
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
Salaries |
|
|
124,626,413 |
|
|
116,592,289 |
Other short-term personnel benefits |
|
|
66,174,342 |
|
|
43,038,362 |
Social security withholdings and collections |
|
|
40,872,783 |
|
|
36,578,358 |
Personnel compensation and bonuses |
|
|
7,669,538 |
|
|
8,881,142 |
Personnel services |
|
|
5,137,521 |
|
|
4,709,035 |
Termination personnel benefits (Exhibit J) |
|
|
477,840 |
|
|
698,306 |
Other long-term personnel benefits |
|
|
3,142,882 |
|
|
1,188,228 |
|
|
|
|
|
|
|
TOTAL |
|
|
248,101,319 |
|
|
211,685,720 |
36. Administrative expenses
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
Taxes |
|
|
52,718,652 |
|
|
45,028,114 |
Rent |
|
|
33,994,508 |
|
|
32,689,896 |
Contracted administrative services |
|
|
30,476,143 |
|
|
19,300,322 |
IT |
|
|
28,885,032 |
|
|
17,810,844 |
Maintenance and repair costs |
|
|
21,248,132 |
|
|
20,605,053 |
Armored transportation services |
|
|
20,868,537 |
|
|
22,656,053 |
Advertising |
|
|
13,742,372 |
|
|
10,927,305 |
Electricity and communications |
|
|
8,381,378 |
|
|
7,721,326 |
Other fees |
|
|
7,298,122 |
|
|
7,097,728 |
Documents distribution |
|
|
6,655,310 |
|
|
6,844,077 |
Security services |
|
|
5,838,983 |
|
|
5,602,508 |
Trade reports |
|
|
4,521,271 |
|
|
3,885,508 |
Insurance |
|
|
1,933,567 |
|
|
2,010,411 |
Representation and travel expenses |
|
|
1,595,378 |
|
|
2,004,805 |
Stationery and supplies |
|
|
376,081 |
|
|
266,751 |
Fees to Bank Directors and Supervisory Committee |
|
|
329,204 |
|
|
357,466 |
Other administrative expenses |
|
|
10,602,190 |
|
|
7,389,113 |
|
|
|
|
|
|
|
TOTAL |
|
|
249,464,860 |
|
|
212,197,280 |
37. Asset depreciation and impairment
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
Property and equipment(Exhibit F and Note 14) |
|
|
20,672,963 |
|
|
22,694,895 |
Intangible assets(Exhibit G and Note 15) |
|
|
3,727,340 |
|
|
2,049,038 |
Right of use of leased real estate(Exhibit F and Note 14) |
|
|
2,401,985 |
|
|
6,286,287 |
Depreciation of other assets |
|
|
1,077,895 |
|
|
949,484 |
Loss from the sale or depreciation of property, plant and equipment (Note 14) |
|
|
797,137 |
|
|
2,191,553 |
|
|
|
|
|
|
|
TOTAL |
|
|
28,677,320 |
|
|
34,171,257 |
38. Other operating expenses
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
Turnover tax |
|
|
203,493,961 |
|
|
127,248,778 |
Other allowances(Exhibit J) |
|
|
20,755,099 |
|
|
18,470,400 |
Initial recognition of loans |
|
|
11,671,162 |
|
|
13,100,574 |
Contribution to the Deposit Guarantee Fund(Note 45) |
|
|
5,728,161 |
|
|
6,330,105 |
Claims |
|
|
2,544,611 |
|
|
4,604,462 |
Interest on lease liabilities(Note 25) |
|
|
1,699,151 |
|
|
1,935,792 |
Loss from the sale or depreciations of investment properties and other non-financial assets |
|
|
238,314 |
|
|
37,562 |
Reorganization expenses(Exhibit J) |
|
|
- |
|
|
7,391,880 |
Other operating expenses |
|
|
18,173,651 |
|
|
12,351,562 |
|
|
|
|
|
|
|
TOTAL |
|
|
264,304,110 |
|
|
191,471,115 |
39. Fair values of financial
instruments
39.1. Assets and liabilities
measured at fair value
The fair value hierarchy of assets and liabilities
measured at fair value as of December 31, 2023 is detailed below:
|
|
Accounting balance |
|
Total Fair Value |
|
Level 1 Fair Value |
|
Level 2 Fair Value |
|
Level 3 Fair Value |
|
|
|
|
|
|
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt securities at fair value through profit or loss |
|
226,082,874 |
|
226,082,874 |
|
223,932,573 |
|
1,651,592 |
|
498,709 |
Derivative instruments |
|
10,001,900 |
|
10,001,900 |
|
- |
|
10,001,900 |
|
- |
Other financial assets |
|
741,812 |
|
741,812 |
|
741,812 |
|
- |
|
- |
Other debt securities |
|
661,090,736 |
|
661,090,736 |
|
521,874,441 |
|
134,525,518 |
|
4,690,777 |
Financial assets pledged as collateral |
|
136,720,428 |
|
136,720,428 |
|
133,507,058 |
|
3,213,370 |
|
- |
Investments in equity instruments |
|
5,210,930 |
|
5,210,930 |
|
3,225,936 |
|
432,216 |
|
1,552,778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities at fair value through profit or loss |
|
10,330,335 |
|
10,330,335 |
|
10,325,192 |
|
5,143 |
|
- |
Derivative instruments |
|
2,145,218 |
|
2,145,218 |
|
- |
|
2,145,218 |
|
- |
The fair value hierarchy of assets and liabilities
measured at fair value as of December 31, 2022 is detailed below:
|
|
Accounting balance |
|
Total Fair Value |
|
Level 1 Fair Value |
|
Level 2 Fair Value |
|
Level 3 Fair Value |
|
|
|
|
|
|
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt securities at fair value through profit or loss |
|
79,470,642 |
|
79,470,642 |
|
12,198,632 |
|
67,272,010 |
|
- |
Derivative instruments |
|
7,063,310 |
|
7,063,310 |
|
- |
|
7,063,310 |
|
- |
Other financial assets |
|
12,227,984 |
|
12,227,984 |
|
12,227,984 |
|
- |
|
- |
Other debt securities |
|
1,870,229,168 |
|
1,870,229,168 |
|
163,805,460 |
|
1,704,398,639 |
|
2,025,069 |
Financial assets pledged as collateral |
|
52,003,019 |
|
52,003,019 |
|
50,408,241 |
|
1,594,778 |
|
- |
Investments in equity instruments |
|
2,922,067 |
|
2,922,067 |
|
2,733,766 |
|
188,301 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative instruments |
|
1,041,154 |
|
1,041,154 |
|
- |
|
1,041,154 |
|
- |
Financial assets at fair value mainly consist of
BCRA Liquidity Bills and Argentine Government Bonds, together with a minor share in Argentine Treasury Bills, Corporate Bonds, Leliq (BCRA
Liquidity Bills) and Ledivs (BCRA Internal Bills). Likewise, financial derivatives are classified at fair value. Such derivatives, include
futures measured at the price of the market where they are traded (Rofex and MAE) and foreign currency NDF (non-delivery forwards), put
options, and interest rate swaps.
39.2. Transfers between hierarchy
levels
The Entity monitors the availability of market
information in order to assess the category of financial instruments in the different hierarchies at fair value, as well as the resulting
determination of inter-level transfers at each closing, considering the comparison of hierarchy levels of the current year versus previous
year levels.
39.2.1. Transfers
from Level 1 to Level 2
There are no transfers from L1 to L2 for the instruments
measured at fair value as of year-end.
39.2.2. Transfers
from Level 2 to Level 1
The following instruments measured at fair value
through profit or loss or through OCI were transferred from Level 2 to Level 1 of the fair value hierarchy:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Argentine Treasury Bonds in pesos adjusted by CER 1.55% Maturity 07-26-2024 |
|
51,382,569 |
|
- |
Argentine Treasury Bonds in pesos adjusted by CER 2% Maturity 11-09-2026 |
|
33,984 |
|
- |
The hierarchy level of the instruments detailed
above was compared with the previous year levels.
The transfer is due to the fact that the bonds
were listed on the market the number of days necessary to be considered Level 1.
39.3. Valuation techniques
for Levels 2 and 3
The valuation techniques used for Level 2 securities
require observable market data: the spot discount curve in pesos, US dollars, USD curves of corporate bonds (one of the energy sector
and the other of several industries), CER, the yield curve in pesos arising from ROFEX futures, the yield curve in pesos arising from
futures traded by ICAP Broker, and the spot selling exchange rate published by Banco de la Nación Argentina (BNA). Below is a detail
of valuation techniques for each financial product:
Fixed Income
The assessment of prices at fair value established
by the Bank for fixed income consists in considering MAE’s representative prices.
In the case of Argentine Treasury bonds and bills,
MAE’s prices are used; if the bonds are not listed within the last 10 business days, then a theoretical valuation is made discounting
cash flows using the related discount curve. Except for BCRA internal bills in US dollars to be settled in Argentine pesos at the benchmark
exchange rate (LEDIV), which cannot be transferred and do not accrue any interest, they are valued at their latest subscription price
plus accrued interest
Liquidity bills issued by the BCRA without quoted
prices in MAE at the end of the month were assigned a theoretical value, discounting cash flows using the monetary policy rate.
In the case of Corporate Bonds in Dollars, we value
them by bringing the future flow of funds to present value with an interest rate curve with comparable corporate bonds.
SWAPS
For swaps, the theoretical valuation consists in
discounting future cash flows using the interest rate, according to the curve estimated on the basis of fixed-rate peso-denominated bonds
and bills issued by the Argentine Government and/or alternatively, if there are no bonds in pesos, of a comparable issuer with market
price (bonds of the Province of Buenos Aires or the Autonomous City of Buenos Aires).
Non-Delivery Forwards
The theoretical valuation of NDFs consists in discounting
the future cash flows to be exchanged pursuant to the contract, using a discount curve that will depend on the currency of each cash flow.
The result is then calculated by subtracting the present values in pesos, estimating the value in pesos based on the applicable spot exchange
rate, depending on whether the contract is local or offshore.
For local peso-dollar swap contracts, cash flows
in pesos are discounted using the yield curve in pesos resulting from the prices of ROFEX futures and the US dollar spot selling exchange
rate published by BNA. Cash flows in US dollars are discounted using the Overnight Index Swap (OIS) international dollar yield curve.
Then, the present value of cash flows in dollars is netted by converting such cash flows into pesos using the US dollar spot selling exchange
rate published by BNA.
For local peso-euro swap contracts, cash flows in
pesos are discounted using the yield curve in pesos resulting from the prices of ROFEX futures and the US dollar spot selling exchange
rate published by BNA. Cash flows in euros are discounted using the yield curve in euros. Then, the present value of cash flows in euros
is netted by converting such cash flows into pesos using the euro spot selling exchange rate published by BNA.
For offshore peso-dollar swap contracts, cash flows
in pesos are discounted using the yield curve in pesos resulting from market quoted forward prices sourced from ICAP and the US dollar
spot selling exchange rate published by BNA. Cash flows in dollars are discounted using the yield curve in dollars. Then, the present
value of cash flows in dollars is netted by converting such cash flows into pesos using the Emerging Markets Traders Association (EMTA)
US dollar spot exchange rate.
The valuation techniques used for Level 3 financial
assets require the use of variables that are not based on observable market inputs. Below is a detail of the valuation techniques used
for each financial asset:
Investments in equity instruments
Investments in equity instruments for which the
Group has no control, joint control or a significant influence are measured at fair value through profit or loss and at fair value through
other comprehensive income according to the latest available information of such companies.
Corporate bonds
The valuation of corporate bonds classified as Level
3 has been determined by the Entity on the basis of the latest available market price (or subscription price, if the security had not
been listed in a market since the date of issuance) plus interest accrued to date. If the security has paid coupon, then the “clean”
price is calculated. If principal was repaid, then repayment amount is deducted and the “dirty” price is recalculated, with
interest being accrued until year-end.
| – | ON Banco de Servicios Financieros (ON BSCNO) |
| – | ON Petroquímica Comodoro Rivadavia S.A. (ON PQCLO) |
| – | Toyota Cia Financiera (ON TYCYO) |
The most relevant unobservable inputs include:
The tables below show a sensitivity analysis for
each of the above-mentioned securities:
Latest market price scenarios |
Changes in final price |
ON ARCOR17 |
ON REF2B |
ON BSCNO |
ON PQCLO |
ON TYCYO |
ON WNCFO |
ON WNCGO |
ON WNCJO |
ON WNCKO |
+2% |
2.000 % |
2.000 % |
1.910 % |
2.190 % |
1.740 % |
2.100 % |
1.950 % |
1.900 % |
0.070 % |
+5% |
5.000 % |
5.000 % |
4.810 % |
5.480 % |
4.360 % |
5.250 % |
4.880 % |
4.740 % |
3.120 % |
+10% |
10.000 % |
10.000 % |
5.710 % |
10.960 % |
8.720 % |
10.510 % |
9.750 % |
9.480 % |
8.190 % |
UVA Scenarios |
Changes in final price |
ON ARCOR17 |
ON REF2B |
+5% |
5.000 % |
5.000 % |
+10% |
10.000 % |
10.000 % |
+15% |
15.000 % |
15.000 % |
Badlar Rate Scenarios |
Changes in final price |
ON BSCNO |
ON PQCLO |
ON TYCYO |
ON WNCFO |
ON WNCGO |
ON WNCJO |
ON WNCKO |
5 % |
0.0811 % |
-0.2928 % |
0.4139 % |
-0.3570 % |
-0.1110 % |
0.3244 % |
0.5667 % |
10 % |
0.2416 % |
0.0634 % |
0.8278 % |
0.1940 % |
0.2014 % |
0.4777 % |
0.7295 % |
15 % |
0.4022 % |
0.4197 % |
1.2418 % |
0.3958 % |
0.5137 % |
0.6310 % |
0.8923 % |
Put options:
Below is a sensitivity analysis of the put (options)
held by BBVA. The input variable used in the sensitivity analysis is the underlying asset’s price.
The put options and the related underlying assets
are as follows:
Asset |
Underlying |
2X5N2D001 |
BOND T2X5 |
3X4N4C001 |
BOND T3X4 |
4X4N9P001 |
BOND T4X4 |
4X4NDD001 |
BOND T4X4 |
4X4NOB001 |
BOND T4X4 |
4X4NOE001 |
BOND T4X4 |
PRBNOB001 |
BOND T4X4 |
T5XNDD001 |
BOND T5X4 |
T5XNDD002 |
BOND T5X4 |
TDJD6U001 |
BOND TDJ24 |
TDJN6U001 |
BOND TDJ24 |
TDJN6U002 |
BOND TDJ24 |
TDJNOV001 |
BOND TDJ24 |
Scenarios of sensitivity to the price of the underlying
asset:
Scenarios: |
Changes in final price |
Changes in Underlying Price (%) |
2X5N2D001 |
3X4N4C001 |
4X4N9P001 |
4X4NDD001 |
4X4NOB001 |
4X4NOE001 |
PRBNOB001 |
-6 % |
2.69 % |
3.86 % |
3.33 % |
3.33 % |
3.33 % |
3.33 % |
3.33 % |
-4 % |
0.55 % |
1.70 % |
1.18 % |
1.18 % |
1.18 % |
1.18 % |
1.18 % |
-2 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
-0.01 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.01 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
2 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
4 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
6 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
Scenarios: |
Changes in final price |
Changes in Underlying Price (%) |
T5XNDD001 |
T5XNDD002 |
TDJD6U001 |
TDJN6U001 |
TDJN6U002 |
TDJNOV001 |
-6 % |
3.31 % |
3.31 % |
5.36 % |
5.36 % |
5.36 % |
5.36 % |
-4 % |
1.15 % |
1.15 % |
3.17 % |
3.17 % |
3.17 % |
3.17 % |
-2 % |
0.00 % |
0.00 % |
1.06 % |
1.06 % |
1.06 % |
1.06 % |
-0.01 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.01 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
2 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
4 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
6 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
0.00 % |
39.4. Reconciliation of balances
at beginning of year and at year-end of Level 3 assets and liabilities at fair value
The following table shows a reconciliation between
balances at beginning of year and at year-end of Level 3 fair values:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Balance at the beginning of the fiscal year |
|
2,025,069 |
|
17,216,431 |
|
|
|
|
|
Other debt securities - Private securities - Corporate bonds |
4,040,478 |
|
(1,217,351) |
Debt securities at fair value through profit or loss - Private securities - Corporate bonds |
498,709 |
|
- |
Other financial assets- Receivables from sale of interest Prisma Medios de Pago S.A. |
- |
|
(13,739,311) |
Income from sale or write-off of financial assets- Prisma Medios de Pago S.A. |
- |
|
11,651,647 |
Monetary loss from assets at fair value |
(1,374,770) |
|
(11,886,347) |
Equity instruments |
1,552,778 |
|
- |
|
|
|
|
|
Balance at fiscal year-end |
|
6,742,264 |
|
2,025,069 |
39.5. Fair value of assets
and liabilities not measured at fair value
Below is a description of methodologies and
assumptions used to assess the fair value of the main financial instruments not measured at fair value, when the instrument does not have
a quoted price in a known market.
| – | Assets and liabilities
with fair value similar to their accounting balance: For financial assets and financial liabilities maturing in less than three months,
it is considered that the accounting balance is similar to fair value. |
| – | Fixed rate financial instruments: The
fair value of financial assets was assessed by discounting future cash flows from market rates at each measurement date for financial
instruments with similar characteristics, adding a liquidity premium (un-observable input) that expresses the added value or additional
cost necessary to dispose of the asset. |
| – | Variable rate financial
instruments: For financial assets and financial liabilities accruing a floating rate, it is considered that the accounting balance
is similar to the fair value. |
The fair value hierarchy of assets and liabilities
not measured at fair value as of December 31, 2023 is detailed below:
|
|
Accounting balance |
|
Total Fair Value |
|
Level 1 Fair Value |
|
Level 2 Fair Value |
|
Level 3 Fair Value |
|
|
|
|
|
|
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and deposits in banks |
|
1,142,949,870 |
|
(a) |
|
- |
|
- |
|
- |
Repo transactions |
|
1,202,421,795 |
|
(a) |
|
- |
|
- |
|
- |
Other financial assets |
|
90,372,010 |
|
(a) |
|
- |
|
- |
|
- |
Loans and other financing |
|
|
|
|
|
|
|
|
|
|
Non-financial government sector |
|
145,208 |
|
(a) |
|
- |
|
- |
|
- |
Other financial institutions |
|
15,451,444 |
|
10,497,432 |
(b) |
- |
|
- |
|
10,497,432 |
Non-financial private sector and residents abroad |
|
1,959,900,738 |
|
1,862,939,319 |
(b) |
- |
|
- |
|
1,862,939,319 |
Other debt securities |
|
96,681,440 |
|
97,167,314 |
|
- |
|
97,167,314 |
|
- |
Financial assets pledged as collateral |
|
124,914,314 |
|
(a) |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
3,639,306,660 |
|
3,598,681,184 |
|
- |
|
3,598,681,184 |
|
- |
Other financial liabilities |
|
448,258,450 |
|
(a) |
|
- |
|
- |
|
- |
Financing received from the BCRA and other financial institutions |
|
28,189,967 |
|
27,621,005 |
|
- |
|
27,621,005 |
|
- |
Corporate bonds issued |
|
12,816,710 |
|
13,043,560 |
|
- |
|
13,043,560 |
|
- |
| (a) | The fair value is not reported as it is considered
similar to its accounting balance. |
| (b) | The Bank’s Management has not identified
additional impairment indicators of its financial assets as a result of the differences in the fair value thereof. |
The fair value hierarchy of assets and liabilities
not measured at fair value as of December 31, 2022 is detailed below:
|
|
Accounting balance |
|
Total Fair Value |
|
Level 1 Fair Value |
|
Level 2 Fair Value |
|
Level 3 Fair Value |
|
|
|
|
|
|
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and deposits in banks |
|
922,671,461 |
|
(a) |
|
- |
|
- |
|
- |
Repo transactions |
|
163,689,844 |
|
(a) |
|
- |
|
- |
|
- |
Other financial assets |
|
89,735,660 |
|
(a) |
|
- |
|
- |
|
- |
Loans and other financing |
|
|
|
|
|
|
|
|
|
|
Non-financial government sector |
|
4,356 |
|
(a) |
|
- |
|
- |
|
- |
BCRA |
|
28,132 |
|
(a) |
|
- |
|
- |
|
- |
Other financial institutions |
|
13,177,999 |
|
8,048,630 |
|
- |
|
- |
|
8,048,630 |
Non-financial private sector and residents abroad |
|
2,219,869,638 |
|
2,082,355,278 |
|
- |
|
- |
|
2,082,355,278 |
Other debt securities |
|
138,659,964 |
|
138,663,334 |
|
- |
|
138,663,334 |
|
- |
Financial assets pledged as collateral |
|
91,851,261 |
|
(a) |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
4,091,312,436 |
|
4,011,915,404 |
|
- |
|
4,011,915,404 |
|
- |
Other financial liabilities |
|
368,805,430 |
|
(a) |
|
- |
|
- |
|
- |
Financing received from the BCRA and other financial institutions |
|
61,886,118 |
|
59,687,834 |
|
- |
|
59,687,834 |
|
- |
Corporate bonds issued |
|
595,354 |
|
591,578 |
|
- |
|
591,578 |
|
- |
| (a) | The fair value is not reported as it is considered
similar to its accounting balance. |
40. Segment reporting
Basis for segmentation
As of December 31, 2023 and 2022, the Group determined
that it has only one reportable segment related to banking activities, based on information reviewed by the chief operating decision maker.
Most of the transactions, properties and customers of the Group are located in Argentina. No client has generated more than 10% of the
Group's total revenues.
The following table shows relevant information on
loans and deposits by business line as of December 31, 2023 and 2022:
Group (banking activity)(1) |
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
|
Loans and other financing |
|
|
1,975,497,390 |
|
2,233,080,125 |
Corporate banking (2) |
|
|
137,874,430 |
|
209,874,068 |
Small and medium companies (3) |
|
|
881,881,010 |
|
815,544,667 |
Retail |
|
|
955,741,950 |
|
1,207,661,390 |
|
|
|
|
|
|
Other assets |
|
|
4,149,012,495 |
|
3,866,851,867 |
TOTAL ASSETS |
|
|
6,124,509,885 |
|
6,099,931,992 |
|
|
|
|
|
|
Deposits |
|
|
3,639,306,660 |
|
4,091,312,436 |
Corporate banking (2) (3) |
|
|
988,616,579 |
|
884,612,690 |
Small and medium companies (2) (3) |
|
|
622,225,377 |
|
758,005,276 |
Retail |
|
|
2,028,464,704 |
|
2,448,694,470 |
|
|
|
|
|
|
Other liabilities |
|
|
1,061,065,634 |
|
869,235,545 |
TOTAL LIABILITIES |
|
|
4,700,372,294 |
|
4,960,547,981 |
| (1) | It includes BBVA Asset Management Argentina
S.A.U. Sociedad Gerente de Fondos Comunes de Inversión, Consolidar A.F.J.P. (undergoing liquidation proceedings), PSA Finance Argentina
Cía. Financiera S.A. and Volkswagen Financial Services Compañía Financiera S.A. |
| (2) | It includes the Financial Sector. |
| (3) | It includes Government Sector. |
The information related to the operating segment
(the Group's banking activity) is the same as that presented in the Consolidated Statement of Income, considering that it is the measure
used by the Entity's chief operating decision marker for the allocation of resources and performance evaluation.
41. Related parties
41.1. Parent
The Bank's parent is Banco Bilbao Vizcaya Argentaria.
41.2. Key management personnel
Pursuant to IAS 24, key management personnel are
those having the authority and responsibility for planning, managing and controlling the Group’s activities, whether directly or
indirectly.
Based on that definition, the Group considers
the members of the Board of Directors as key personnel.
41.2.1. Remuneration of key management personnel
The Group's key management personnel received the following compensations:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Fees |
|
260,104 |
|
281,622 |
|
|
|
|
|
Total |
|
260,104 |
|
281,622 |
41.2.2. Profit or loss from transactions and balances
with key management personnel
|
Balances as of |
|
Profit or loss from transactions |
|
|
|
12.31.23 |
12.31.22 |
|
12.31.23 |
12.31.22 |
Loans |
|
|
|
|
|
Overdrafts |
- |
6 |
|
15 |
50 |
Credit cards |
37,505 |
65,429 |
|
20,541 |
13,939 |
Consumer loans |
1,430 |
3,288 |
|
68,729 |
51,447 |
|
|
|
|
|
|
Deposits |
|
|
|
|
|
Deposits |
88,640 |
119,835 |
|
26,352 |
1,149 |
Loans are granted on an arm’s length basis.
As of December 31, 2023 and 2022, balances of loans granted are classified under normal performance according to the debtor classification
rules issued by the BCRA.
41.2.3. Profit
or loss and balances with related parties (except for key management personnel)
Parent |
Balances as of |
|
|
Profit or loss from transactions |
12.31.23 |
12.31.22 |
|
|
12.31.23 |
12.31.22 |
|
|
|
|
|
|
|
Cash and deposits in banks |
10,922,469 |
2,136,505 |
|
|
- |
- |
Financial assets pledged as collateral (2) |
- |
176,508 |
|
|
- |
- |
Other financial assets (2) |
113,600 |
1,640,794 |
|
|
- |
- |
Other non-financial liabilities |
45,299,560 |
81,819,668 |
|
|
51,066,746 |
41,067,033 |
Derivative instruments (Liabilities) (1) |
- |
34,501 |
|
|
189,783 |
69,054 |
|
|
|
|
|
|
|
Off-balance sheet balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities in custody |
861,464,724 |
574,069,135 |
|
|
- |
- |
Derivative instruments |
- |
6,019,082 |
|
|
- |
- |
Sureties granted |
15,741,245 |
7,187,249 |
|
|
34,032 |
30,368 |
Guarantees received |
19,902,455 |
8,484,843 |
|
|
- |
- |
|
|
|
|
|
|
|
(1) Profit or loss of Derivative instruments (Assets) is exposed under Derivative instruments (Liabilities). |
(2) These transactions do not generate profit or loss. |
|
Subsidiaries (1) |
Balances as of |
|
|
Profit or loss from transactions |
12.31.23 |
12.31.22 |
|
|
12.31.23 |
12.31.22 |
|
|
|
|
|
|
|
Loans and other financing |
22,330,896 |
39,679,823 |
|
|
28,433,515 |
18,977,017 |
Deposits |
12,901,727 |
861,143 |
|
|
3,557,755 |
34,868 |
Other non-financial liabilities |
1,324,162 |
72 |
|
|
3,922,886 |
149 |
Other operating income |
- |
- |
|
|
42,552 |
67,229 |
Administrative expenses |
- |
- |
|
|
49,303 |
- |
|
|
|
|
|
|
|
Off-balance sheet balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities in custody |
919,892 |
12,227,984 |
|
|
- |
- |
(1) The transactions between BBVA and its subsidiaries
detailed in the preceding table were eliminated for consolidation purposes in the Consolidated Financial Statements as of December 31,
2023.
Associates |
Balances as of |
|
|
Profit or loss from transactions |
12.31.23 |
12.31.22 |
|
|
12.31.23 |
12.31.22 |
|
|
|
|
|
|
|
Cash and deposits in banks |
- |
1,853 |
|
|
- |
- |
Loans and other financing |
5,218,627 |
5,765,041 |
|
|
7,486,744 |
8,981,569 |
Derivative instruments (Assets) |
- |
92,737 |
|
|
151,227 |
318,833 |
Other financial assets |
438,171 |
1,331,883 |
|
|
- |
- |
Deposits |
1,399,819 |
4,293,898 |
|
|
896,649 |
898,004 |
Received financing |
- |
499,887 |
|
|
249,280 |
208,427 |
Commission income |
- |
- |
|
|
712,997 |
825 |
Commission expense |
- |
- |
|
|
22,833 |
492,803 |
Other operating income |
- |
- |
|
|
1,062,213 |
307,283 |
|
|
|
|
|
|
|
Off-balance sheet balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
- |
4,671,087 |
|
|
- |
- |
Securities in custody |
20,357,420 |
12,889,058 |
|
|
- |
- |
Guarantees received |
- |
2,245,950 |
|
|
- |
- |
Secured loans |
280,500 |
426,046 |
|
|
- |
- |
Transactions have been agreed upon on an arm’s
length basis. As of December 31, 2023 and 2022, balances of loans granted are classified under normal performance according to the debtor
classification rules issued by the BCRA.
42. Financial instruments risks
42.1. Risk policies of financial
instruments
Presentation of Risk Management and Risk-Weighted
Assets (RWA)
Strategies and processes
The purpose of the organization is based on
assuming a prudential level of risks in order to generate yields and keep acceptable levels of capital and funding, and generate benefits
on a recurring basis. Therefore, it is vital that the teams assigned to risk management are highly trained professionals.
The General Risks Policy of BBVA Argentina expresses
the levels and types of risk the Entity is willing to take to carry out its strategic plan, with no relevant deviations, even under stress
conditions. Along this line, the process for risks management is comprehensive and proportional to the economic size and importance of
the financial institution.
To achieve its goals, BBVA Argentina uses a
management model with two guiding principles for the decision-making process:
| - | Prudential analysis:
related to the management of the various risks acknowledged by the Entity. |
| - | Anticipation: it refers
to the capacity to make decisions foreseeing relevant changes in the environment, the competition and customers that may have an impact
in the mid-term. |
This process is adequate, sufficiently proven,
duly documented and periodically reviewed based on the changes to the Entity’s risk profile and the market.
In this regard, the Board of Directors and the Senior
Management are highly committed to the identification, evaluation, follow-up, control and mitigation of significant risks. These bodies
periodically review credit, financial and operational risks, which may potentially affect the success of BBVA Argentina's activities,
and place special emphasis on strategic, reputation and concentration risks.
Structure and organization
The Entity has a formal organizational structure
in place, with a set of roles, responsibilities and powers, organized in a pyramidal structure, generating control instances by an independent
area from lower to higher levels, up to the highest decision-making bodies. Below are the areas in each structure and a list of their
functions:
-
Risk Management
-
Committees
-
Reporting
-
Cross-Control Areas
Risk Management:
This area is independent from business units. It
is in charge of implementing the criteria, policies and procedures defined by the organization within the scope of credit risk and financial
risk management, by following-up and controlling their proper application and by proposing the actions necessary to keep the quality of
risks within the defined goals. Some of its main functions are to ensure proper information for the decision-making process at all levels,
including relevant risk factors, such as:
- Active management throughout the risk lifetime.
- Clear processes and procedures.
- Integrated management of all risks through
identification and quantification.
- Generation, implementation and dissemination
of advanced decision-making support tools.
Committees:
Committees are responsible for risk management.
This implies knowledge, assessment, weighting and potential mitigation. BBVA Argentina has an agile and proper structure of committees
in charge of managing various risks.
Reporting:
The Reporting area is in charge of controlling procedures
for risk rating and credit limit requirements; provisioning; determining the risk quota for each segment of economic activity and type
of financing; and assessing and following-up fundamental metrics setting forth, in quantitative terms, the principles and general risk
profile in the statement of Risk Appetite. In addition, it is in charge of generating reports to support Risk Management’s decisions
in compliance with internal and control organizations’ credit policies, as well as of reviewing processes and proposing alternatives.
Cross-Control Areas
Internal Control - Internal Control and Compliance
Department - has the following main functions: to ensure that there is a sufficient internal regulatory framework; a process and measures
defined for each type of risk; to control its application and operation; and to ensure that an assessment is made of the existence of
a control environment and its adequate implementation and operation.
Model Validation - Internal Control and Compliance
Department - who ensures that BBVA Argentina's internal statistical risk models are adequate for their use, and must issue a well-founded
and updated opinion on their adequate use.
The control and monitoring areas are in charge of
giving cohesion to credit risk management and ensuring that the management of the rest of the critical risks for the Bank is carried out
in accordance with the established standards.
Finally, Internal Audit, transversal to the business
and support units.
Risk Appetite
Risk Appetite is a key element in financial institutions'
management, providing a comprehensive framework for the Entity to determine the risks and level of risks it is willing to take to reach
its business goals, expressed in terms of capital, liquidity, profitability, income recurrence, risks costs or other metrics. Risk Appetite
is expressed through a Statement containing the general principles for the Bank’s strategy and quantitative metrics.
Stress Testing
In compliance with the provisions on “guidelines
for risk management in Financial Institutions” set forth by the Argentine Central Bank, the Entity has developed a stress test program,
within the Entity's comprehensive risk management.
Stress test means the evaluation of the Entity's
financial position under an adverse but plausible scenario, which requires the simulation of scenarios to estimate the potential impact
on the value of portfolios, profitability, solvency and liquidity for the purposes of identifying latent risks or detecting vulnerabilities.
Credit Risk
The Bank defines credit risk as the possibility
to sustain losses as a result of a debtor’s or counterparty’s noncompliance with the contractual obligations assumed.
Credit risk is present in on and off-balance sheet
transactions, as well as settlement risk, that is to say, when a financial transaction cannot be completed or settled as agreed. Credit
risk losses arise from a debtor's or counterparty’s noncompliance with its obligations. Also, it takes into consideration several
types of risks, such as country risk, and counterparty credit risk.
BBVA Argentina defines country risk as the risk
of sustaining losses generated in investments and loans to individuals, companies, and governments due to the incidence of economic, political,
and social events occurring in a foreign country.
Strategy and processes
BBVA Argentina develops a credit risk management
strategy defining the goals that will guide its granting activities, the policies to be adopted, and the necessary practices and procedures
to carry out those activities.
Additionally, Risk Management annually develops,
together with the rest of the Group's management departments, a budget process, including the main variables of credit risk:
| - | Expected growth per portfolio and product.
|
| - | Changes in the default ratio. |
| - | Changes in write-off portfolios. |
Thus, the standard expected credit risk values for
a term of one year are set. Afterwards, the real values obtained are compared with that budget, to assess both the growth of the portfolio
and its quality.
Also, maximum limits or exposures per economic activity
are formalized, pursuant to the Bank’s placement strategy, which are used to follow up credit portfolios. In the event of deviations
from the limits set, these are analyzed by the Risk Follow-Up Committees to take the necessary measures.
Admission
BBVA Argentina has credit risk admission policies,
whereby the criteria for obtaining quality assets, establish risk tolerance levels and align credit activities with BBVA Argentina's and
the Group's strategy are defined. Thus, the risk assumption policy is organized in three different levels within the Group:
- Analysis of the financial risk of the transaction,
based on the debtor's ability to pay or to generate funds.
- The constitution of adequate guarantees, or in
any case generally accepted guarantees, for the risk assumed, in any of the generally accepted forms: cash, in rem, personal or hedging.
- Evaluation of the repayment risk (liquidity of
the assets) of the guarantees received.
Follow-up
The Bank establishes certain follow-up procedures
based on the banking area involved, as the admission stage is not the end of the process. Follow-up is as important as decision-making,
since risk is dynamic and customers rely on themselves and the environment.
The main follow-up procedures carried out for the
various Banking areas are:
| - | Follow-up on the limit granted: Since customer
profiles vary over time, the limits of products purchased are periodically reviewed for the purpose of extending, reducing, or suspending
the limit assigned, based on the risk situation. |
| - | Maintenance of proactive limits: Customers’
characteristics, and therefore the characteristics of the data originating certain limits, vary over time. Therefore, there is periodical
maintenance of the proactive limits, taking into consideration the changes in a customer's situation (position of assets and liabilities,
and relationship). Likewise, there is a periodic follow-up on the changes in proactive limits for the purpose of controlling and ensuring
the risk assigned is in accordance with the desired risk levels. |
| - | Follow-up on rating tools: Rating tools rely
on the internal inputs and show the characteristics and biases of such inputs. Therefore, they need a long period of use to soften or
eliminate those biases through the inclusion of new information, correction of existing information and periodic reviews optimizing the
results of back-tests. |
| - | Portfolio analysis: The portfolio analysis
consists of a follow-up process and study of the complete cycle of the risk of portfolios for the purpose of analyzing the status of the
portfolio, identifying potential improvements in the management, and forecasting the future behavior. |
Additionally, the following functions shall be carried
out:
| - | Follow-up on specific customers. |
| - | Follow-up on units (branches, areas, channels).
|
| - | Other follow-up actions (samples, control of
admission and risk management processes, campaigns). |
The priority in credit risk follow-up processes
is focused mainly on problematic or potentially problematic customers, for preventive purposes. The remaining aspects, the follow-up on
products, units and other follow-up actions are supplementary to the specific follow-up on customers.
Recovery
BBVA Argentina has Recovery areas which are part
of its Retail and Wholesale Risk divisions. The role of these areas is mitigating the severity of credit portfolios, of both the Bank
and the companies related to the Entity, as well as contributing to the Bank's results, directly through collections of Write-Off portfolios
and indirectly through collections of active portfolios, which imply a reduction in allowances.
Scope and nature of risk information and/or measurement
systems
BBVA Argentina has several tools that are used in
credit risk management, allowing for effective risk control and facilitating the whole risk treatment process.
Additional information on the credit quality
of assets
Exposure to credit risk
The Group’s exposure to credit risk of loans
and overdrafts as per IFRS 9 with allocation by stage according to the classification of assets as of December 31, 2023 and 2022 is as
follows:
Exposure to credit risk |
December 31, 2023 |
Stage 1 |
Stage 2 |
Stage 3 |
|
|
|
|
|
Financial assets at amortized cost |
2,130,796,082 |
1,888,834,468 |
206,755,726 |
35,205,888 |
|
|
|
|
|
Wholesale |
1,158,576,400 |
1,067,199,238 |
85,839,772 |
5,537,390 |
- Company banking |
636,961,815 |
612,858,049 |
19,916,245 |
4,187,521 |
- Corporate and investment banking |
362,398,814 |
311,607,083 |
50,791,514 |
217 |
- Local and International |
7,805 |
3,685 |
201 |
3,919 |
- SMEs |
159,207,966 |
142,730,421 |
15,131,812 |
1,345,733 |
|
|
|
|
|
Retail |
972,219,682 |
821,635,230 |
120,915,954 |
29,668,498 |
- Overdrafts |
1,909,410 |
1,166,156 |
377,016 |
366,238 |
- Credit cards |
674,523,874 |
582,116,623 |
78,202,893 |
14,204,358 |
- Consumer loans |
153,475,842 |
131,013,331 |
11,302,243 |
11,160,268 |
- Pledge loans |
47,968,181 |
46,532,007 |
653,277 |
782,897 |
- Mortgage loans |
90,404,966 |
58,129,217 |
29,121,012 |
3,154,737 |
- Finance leases |
2,177,565 |
2,163,236 |
14,329 |
- |
- Other |
1,759,844 |
514,660 |
1,245,184 |
- |
|
|
|
|
|
Financial assets at fair value through OCI |
12,172,560 |
12,172,560 |
- |
- |
|
|
|
|
|
- Debt securities |
12,172,560 |
12,172,560 |
- |
- |
|
|
|
|
|
Total financial assets |
2,142,968,642 |
1,901,007,028 |
206,755,726 |
35,205,888 |
|
|
|
|
|
|
|
|
|
|
Loan commitments and financial guarantees |
647,025,344 |
585,414,818 |
61,403,032 |
207,494 |
|
|
|
|
|
Wholesale |
241,347,117 |
217,735,177 |
23,589,353 |
22,587 |
- Company banking |
96,632,508 |
83,741,932 |
12,885,097 |
5,479 |
- Corporate and investment banking |
95,868,758 |
92,737,597 |
3,131,153 |
8 |
- Local and International |
35,404,046 |
31,588,932 |
3,815,114 |
- |
- SMEs |
13,441,805 |
9,666,716 |
3,757,989 |
17,100 |
|
|
|
|
|
Retail |
405,678,227 |
367,679,641 |
37,813,679 |
184,907 |
- Overdrafts |
13,284,965 |
12,787,853 |
494,004 |
3,108 |
- Credit cards |
390,703,870 |
353,899,032 |
36,679,554 |
125,284 |
- Mortgage loans |
1,598,766 |
913,866 |
628,385 |
56,515 |
- Other |
90,626 |
78,890 |
11,736 |
- |
|
|
|
|
|
Total loan commitments and financial guarantees |
647,025,344 |
585,414,818 |
61,403,032 |
207,494 |
|
|
|
|
|
|
|
|
|
|
Total exposure to credit risk |
2,789,993,986 |
2,486,421,846 |
268,158,758 |
35,413,382 |
Exposure to credit risk |
December 31, 2022 |
Stage 1 |
Stage 2 |
Stage 3 |
|
|
|
|
|
Financial assets at amortized cost |
2,435,195,013 |
2,191,473,683 |
204,544,012 |
39,177,318 |
|
|
|
|
|
Wholesale |
1,168,822,472 |
1,109,251,434 |
53,181,794 |
6,389,244 |
- Company banking |
661,822,147 |
626,189,253 |
30,580,795 |
5,052,099 |
- Corporate and investment banking |
352,986,681 |
334,163,826 |
18,822,815 |
40 |
- Local and International |
187,881 |
8,729 |
177,349 |
1,803 |
- SMEs |
153,825,763 |
148,889,626 |
3,600,835 |
1,335,302 |
|
|
|
|
|
Retail |
1,266,372,541 |
1,082,222,249 |
151,362,218 |
32,788,074 |
- Overdrafts |
3,354,887 |
1,837,008 |
987,944 |
529,935 |
- Credit cards |
822,762,185 |
707,207,058 |
102,601,449 |
12,953,678 |
- Consumer loans |
220,915,565 |
194,713,429 |
13,703,503 |
12,498,633 |
- Pledge loans |
84,573,077 |
79,746,567 |
2,299,056 |
2,527,454 |
- Mortgage loans |
131,979,055 |
95,975,191 |
31,729,028 |
4,274,836 |
- Finance leases |
2,688,360 |
2,643,692 |
41,130 |
3,538 |
- Other |
99,412 |
99,304 |
108 |
- |
|
|
|
|
|
Financial assets at fair value through OCI |
11,593,436 |
11,593,436 |
- |
- |
|
|
|
|
|
- Debt securities |
11,593,436 |
11,593,436 |
- |
- |
|
|
|
|
|
Total financial assets |
2,446,788,449 |
2,203,067,119 |
204,544,012 |
39,177,318 |
|
|
|
|
|
|
|
|
|
|
Loan commitments and financial guarantees |
664,472,529 |
606,937,314 |
57,326,255 |
208,960 |
|
|
|
|
|
Wholesale |
124,191,534 |
109,972,663 |
14,184,466 |
34,405 |
- Company banking |
46,597,993 |
38,071,627 |
8,513,906 |
12,460 |
- Corporate and investment banking |
54,373,985 |
51,837,248 |
2,536,737 |
- |
- Local and International |
11,467,755 |
9,147,894 |
2,319,861 |
- |
- SMEs |
11,751,801 |
10,915,894 |
813,962 |
21,945 |
|
|
|
|
|
Retail |
540,280,995 |
496,964,651 |
43,141,789 |
174,555 |
- Overdrafts |
30,487,566 |
29,181,844 |
1,301,474 |
4,248 |
- Credit cards |
507,464,932 |
466,048,328 |
41,291,086 |
125,518 |
- Mortgage loans |
2,108,796 |
1,528,230 |
535,777 |
44,789 |
- Other |
219,701 |
206,249 |
13,452 |
- |
|
|
|
|
|
Total loan commitments and financial guarantees |
664,472,529 |
606,937,314 |
57,326,255 |
208,960 |
|
|
|
|
|
|
|
|
|
|
Total exposure to credit risk |
3,111,260,978 |
2,810,004,433 |
261,870,267 |
39,386,278 |
Information on the credit quality of assets
The Group’s analysis of credit quality of
loans and overdrafts under IFRS 9 with allocation of risk as of December 31, 2023 and 2022 is as follows:
Credit quality |
December 31, 2023 |
December 31, 2022 |
|
|
|
Wholesale |
|
|
- Low risk (PD < 4%) |
1,191,926,613 |
1,122,031,665 |
- Medium risk (PD ≥ 4% to < 24%) |
166,175,198 |
112,796,788 |
- High risk (PD ≥ 24% to < 100% or individualized Stage 2) |
36,261,729 |
51,761,904 |
- Non performing (PD at 100% or individualized Stage 3) |
5,559,977 |
6,423,649 |
Total wholesale |
1,399,923,517 |
1,293,014,006 |
|
|
|
Retail |
|
|
- Low risk (PD < 2.3%) |
1,075,897,337 |
1,379,787,080 |
- Medium risk (PD ≥ 2.3% to < 29%) |
266,128,432 |
375,330,757 |
- High risk (PD ≥ 29% to < 100% or individualized Stage 2) |
6,018,735 |
18,573,070 |
- Non performing (PD at 100% or individualized Stage 3) |
29,853,405 |
32,962,629 |
Total retail |
1,377,897,909 |
1,806,653,536 |
|
|
|
Debt securities |
|
|
- Private securities (B) |
12,085,356 |
11,593,436 |
- Private securities (B-) |
87,204 |
- |
Total debt securities |
12,172,560 |
11,593,436 |
|
|
|
Total exposure to credit risk |
2,789,993,986 |
3,111,260,978 |
Credit risk hedging
Risk hedging and/or mitigation policy
Although risk hedges and/or mitigation with additional
guarantees are an important factor when granting loans, the main factor to decide is if the customer has sufficient generation of funds
to pay for the obligations agreed.
The beneficiary's repayment capacity by generating
sufficient resources is above any other consideration. Thus, the risk decision is based on the borrower's payment capacity to timely and
duly comply with all the financial obligations assumed, based on income obtained from its customary business or income source, without
relying on sureties, guarantors or assets pledged as collateral.
In addition to the policies and follow-ups, BBVA
Argentina uses collateral, comfort letters and covenants as risk mitigating tools.
Collateral
Upon assessing collateral, BBVA Argentina carefully
analyzes if it is appropriate. Along this line, the milestones to update the value of collateral apply under prudential principles.
Regarding the types of collateral managed by BBVA
Argentina, the following stand out:
| - | Guarantees: It includes sureties or unsecured
instruments. |
| - | Joint and several guarantee: Upon default on
payment, the creditor may collect the unpaid amount from either the debtor or the surety. |
| - | Joint guarantee: In this case the guarantors
and debtholders are liable in proportion to their interest in the company / transaction and restricted to such amount or percentage. |
| - | Security interest: It includes guarantees based
on tangible assets, which are classified as follows: |
| · | Mortgages: A mortgage does not change the debtor's
unlimited liability, who remains fully liable. They are documented pursuant to the Bank's internal regulations for such purposes and are
duly registered. Also, there is an independent appraisal, at market value, which enables a prompt sale. |
| · | Pledges: This includes chattel mortgages of
motor vehicles or machinery, as well as liens on Time Deposits and Mutual Funds. To be accepted, they shall be effective upon realization
accordingly, they are properly documented and shall be approved by the Legal Services area. Finally, the Bank hedges against the variation
in the value of the pledge. |
Loan commitments
To meet the specific financial needs of customers,
the Group's credit policy also includes, among others, granting collateral, surety, warranties, letters of credit and secured loans (recorded
in debit accounts pursuant to accounting standards of the BCRA). Although these transactions are not recognized in the Consolidated Statement
of Financial Position because they imply a potential liability for the Group, they expose the Group to credit risks in addition to those
recognized in the Consolidated Statement of Financial Position and are, therefore, an integral part of the Group's total risk.
As of December 31, 2023 and 2022, the Group holds
the following contingent transactions, as detailed in Note 8.
Hedging based on netting of on and off-balance
sheet transactions
The Entity, within the limits defined by regulations
regarding netting, negotiates with its customers the execution of master agreements (for instance, ISDA or CMOF) for the derivatives business,
including the netting of off-balance sheet transactions.
The wording of each agreement determines in each
case the transaction subject to netting. The reduction in the exposure of counterparty risk arising from the use of mitigation techniques
(netting plus use of collateral agreements) implies a decrease in total exposure (current market value plus potential risk).
Main types of guarantors and counterparties of
credit derivatives
The Bank defines that the collateral (or credit
derivative) shall be direct, explicit, irrevocable, and unconditional in order to be accepted as risk mitigation. Furthermore, regarding
admissible guarantors, BBVA Argentina accepts financial institutions (local or foreign), public entities, stock exchange companies, and
resident and non-resident companies, including insurance companies.
Concentration of the market or credit risk through
the instruments used to mitigate credit risk
The Entity classifies the collateral received pursuant
to the regulations in force of the BCRA into:
| - | Preferred Collateral “A” |
| - | Preferred Collateral “B” |
| - | Other Collateral (not included in the sections
above) |
Preferred collateral received for loans are reported
in Exhibit “B” to these consolidated financial statements.
Credit quality of financial assets which are
not past due or impaired
The Group relies on certain tools (“scoring”
and “rating”) to classify the credit quality of its transactions and customers, based on an assessment and subsequent mapping
to probability of default (“PD”) scales. In analyzing the PD performance, the Group relies on certain monitoring tools and
historical databases that contain relevant information generated in-house. These tools can be grouped in scoring and rating models. The
main difference between both lies in the fact that scoring models are used to assess retail products, while rating models are intended
for wholesale banking customers.
The Group calculates these different levels and
their associated probabilities of default by reference to rating scales and default rates. These calculations establish the PD levels
for the Bank's Master Rating Scale. Even though this scale is common to the whole Group, adjustments (mapping of scores to PD sections
/ Master Rating Scale levels) are made at the tool level per each country where the Group has tools available.
Financial Risks
Financial Risk applies the criteria, policies and
procedures defined by the Board of Directors within the management of that risk, with follow-up and control on its proper application,
and proposing the necessary actions to maintain the quality of risk within the defined risk appetite.
The financial risks management model of BBVA Argentina
consists of the Market Risk, Structural Risk and Economic Capital Areas, which are coordinated for risks control and follow-up.
The management of these risks is in line with the
basic principles of the Basel Committee on Banking Supervision, with a comprehensive process to identify, measure, monitor and control
risks.
The organization of financial risks is completed
with a scheme of committees, in which it participates, created for the purpose of having an agile management process integrated into the
treatment of the various risks.
Among others:
| - | Assets and liabilities Committee (ALCO) |
| - | Risk Management Committee (RMC) |
| - | Financial Risks Committee (FRC) |
BBVA Argentina has many tools and systems to manage
and follow-up market risk, to achieve effective risk control and treatment.
Market Risk
BBVA Argentina considers market risk as the likelihood
of losing value of the trading portfolio as a consequence of adverse changes in market variables affecting the valuation of financial
products and instruments.
The main market risk factors the Entity is exposed
to are as follows:
| - | Interest rate risk: From exposure to changes
in the various interest rate curves. |
| - | Foreign exchange risk: From changes in the
various foreign exchange rates. All positions in a currency other than the financial statements currency create foreign exchange risk. |
The main market risk metric is VaR (“Value
at Risk”), a parameter to estimate the maximum loss expected for the trading portfolio positions with a 99% confidence level and
a time horizon of 1 day.
Current management structure and procedures in force
include follow-up on a limit and alert arrangement in terms of VaR, economic capital, stress and stop loss.
The market risk measurement model is periodically
validated through Back-Testing to determine the quality and precision of the VaR estimate.
The Market Risk management model contemplates procedures
for communication in the event the risks levels defined are exceeded, establishing specific communication and action procedures based
on the exceeded threshold.
The market risk measurement perimeter is the trading
book managed by the Global Markets unit. The trading book mainly consists of:
| - | Argentine Government Securities (Argentine
Treasury bonds and bills). |
| - | Argentine Central Bank Bills. |
| - | Derivatives (Exchange rate Futures and Forwards). |
The following tables show changes in total VaR and
VaR per risk factors.
VaR (in millions of pesos)
|
12.31.23 |
12.31.22 |
Average |
303.54 |
141.13 |
Minimum |
24.49 |
48.71 |
Maximum |
1,586.80 |
263.07 |
Closing |
296.22 |
112.22 |
VaR per risk factors – (in millions of pesos)
VaR Interest rate |
12.31.23 |
12.31.22 |
Average |
336.97 |
157.79 |
Minimum |
29.58 |
49.32 |
Maximum |
2,163.96 |
298.07 |
Closing |
298.78 |
121.29 |
|
|
|
VaR Exchange rate |
12.31.23 |
12.31.22 |
Average |
7.24 |
1.05 |
Minimum |
0.29 |
-0.47 |
Maximum |
190.63 |
65.11 |
Closing |
12.28 |
0.15 |
Currency risk
The position in foreign currency is
shown below:
ACCOUNTS |
|
TOTAL |
AS OF 12.31.23 (per currency) |
|
TOTAL |
|
|
AS OF |
|
|
|
|
|
AS OF |
ASSETS |
|
12.31.23 |
Dollar |
Euro |
Real |
Other |
|
12.31.22 |
|
|
|
|
|
|
|
|
|
Cash and deposits in banks |
|
1,076,719,793 |
1,041,165,789 |
32,597,593 |
494,680 |
2,461,731 |
|
773,572,820 |
Debt securities at fair value through profit or loss |
|
225,199,948 |
225,199,948 |
- |
- |
- |
|
10,961,484 |
Other financial assets |
|
38,278,296 |
38,263,508 |
14,788 |
- |
- |
|
26,342,573 |
Loans and other financing |
|
196,957,836 |
196,589,749 |
368,087 |
- |
- |
|
119,996,346 |
Non-financial government sector |
|
1,778 |
1,778 |
- |
- |
- |
|
146 |
Other financial institutions |
|
4,138 |
4,138 |
- |
- |
- |
|
2,027 |
Non-financial private sector and residents abroad |
|
196,951,920 |
196,583,833 |
368,087 |
- |
- |
|
119,994,173 |
Other debt securities |
|
74,070,243 |
74,070,243 |
- |
- |
- |
|
17,022,612 |
Financial assets pledged as collateral |
|
42,418,319 |
42,418,319 |
- |
- |
- |
|
33,542,338 |
Investments in equity instruments |
|
432,216 |
404,468 |
27,748 |
- |
- |
|
187,625 |
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
1,654,076,651 |
1,618,112,024 |
33,008,216 |
494,680 |
2,461,731 |
|
981,625,798 |
ACCOUNTS |
|
TOTAL |
AS OF 12.31.23 (per currency) |
|
TOTAL |
|
|
AS OF |
|
|
|
|
|
AS OF |
LIABILITIES |
|
12.31.23 |
Dollar |
Euro |
Real |
Other |
|
12.31.22 |
|
|
|
|
|
|
|
|
|
Deposits |
|
1,281,848,662 |
1,263,551,944 |
18,296,718 |
- |
- |
|
890,641,779 |
Non-financial government sector |
|
22,134,436 |
22,074,195 |
60,241 |
- |
- |
|
20,021,689 |
Financial sector |
|
632,096 |
625,174 |
6,922 |
- |
- |
|
268,556 |
Non-financial private sector and residents abroad |
|
1,259,082,130 |
1,241,206,359 |
18,229,555 |
- |
- |
|
870,351,534 |
Other financial liabilities |
|
79,930,161 |
73,958,024 |
5,400,352 |
- |
571,785 |
|
68,186,188 |
Financing received from the BCRA and other financial institutions |
|
3,119,096 |
2,800,253 |
318,843 |
- |
- |
|
3,455,761 |
Other non-financial liabilities |
|
61,891,994 |
38,792,328 |
23,099,666 |
- |
- |
|
36,704,866 |
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
1,426,789,913 |
1,379,102,549 |
47,115,579 |
- |
571,785 |
|
998,988,594 |
The notional amounts of the foreign currency
forward, forward transactions and interest rate swaps are detailed in Note 5.
Interest rate risk
Structural interest risk (SIR) gathers the potential
impact of market interest rate variations on the margin of interest and the equity value of BBVA Argentina.
The process to manage this risk has a limit
structure to keep the exposure to this risk within levels that are consistent with the risk appetite and the business strategy defined
and approved by the Board of Directors.
Within the core metrics used for measurement,
follow-up and control, the following stand out:
| - | Margin at Risk (MaR):
It quantifies the maximum loss which may be recorded in the financial margin projected over 12 months under the worst-case scenario of
rate curves for a certain level of confidence. |
| - | Economic Capital (EC):
It quantifies the maximum loss which may be recorded in the Entity's economic value under the worst-case scenario of rate curves for a
certain level of confidence. |
The Bank additionally carries out a sensitivity
analysis on the economic value and the financial margin for parallel variations by +/- 100 basis points over interest rates.
The following table shows the progress of the
sensitivity of the economic value (SEV), given a variation of +100 basis points in relation to the Core Capital:
SEV +100 bps
|
12.31.23 |
12.31.22 |
Closing |
1.09 % |
0.62 % |
Minimum |
0.67 % |
0.62 % |
Maximum |
1.09 % |
1.42 % |
Average |
0.79 % |
1.00 % |
The following table shows the progress of the
sensitivity of the financial margin (SFM), given a variation of -100 basis points in relation to the 12-month projected margin:
SFM -100 bps
|
12.31.23 |
12.31.22 |
Closing |
0.30 % |
0.47 % |
Minimum |
0.11 % |
0.43 % |
Maximum |
0.35 % |
1.01 % |
Average |
0.24 % |
0.75 % |
Liquidity and financing risk
Liquidity risk is defined as the possibility
that the Entity may not efficiently meet its payment obligations, without incurring significant losses that may affect its daily operations
or its financial position.
The short-term purpose of the liquidity and
financing risk management process at BBVA Argentina is to timely and duly address payment commitments agreed, without resorting to additional
funding deteriorating the Entity's reputation or significantly affecting its financial position, keeping the exposure to this risk within
levels that are consistent with the risk appetite and the business strategy defined and approved by the Board of Directors. In the medium
and long term, such process is aimed at watching for the suitability of the financial structure of the Bank and its changes, according
to the economic situation, the markets, and the regulatory changes.
Within the core metrics used for measurement,
follow-up and control of this risk, the following stand out:
LtSCD (Loan to Stable Customers Deposits): It
measures the relationship between the net credit investment and the customers’ stable resources and is set forth as the key metric
of risk appetite. The goal is to preserve a stable financing structure in the medium and long term.
Changes in LtSCD ratios are summarized below:
|
12.31.23 |
12.31.22 |
LtSCD Closing |
59.70 % |
58.00 % |
Maximum |
80.30 % |
62.80 % |
Minimum |
58.20 % |
54.60 % |
Average |
62.70 % |
58.60 % |
LCR (Liquidity Coverage Ratio): It measures
the relation between high quality liquid assets and total net cash outflows during a 30-day period. BBVA Argentina, as established in
the regulations issued by the BCRA, “A” 5693, calculates the liquidity coverage coefficient daily.
Changes in LCR ratios are summarized below:
|
12.31.23 |
12.31.22 |
LCR Closing |
271 % |
348 % |
Maximum |
433 % |
348 % |
Minimum |
151 % |
223 % |
Average |
246 % |
278 % |
Concentration of deposits as of December 31,
2023 and 2022 is exposed in Exhibit H to these consolidated financial statements.
The following charts show the breakdown by term
of loans, other financing and financial liabilities considering the total contractual amounts to their due date, as of December 31, 2023
and 2022:
|
|
Assets - Exhibit D (*) |
|
Liabilities -Exhibit I (*) |
|
|
12.31.23 |
|
12.31.22 |
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
|
|
|
|
Up to 1 month |
|
948,027,726 |
|
1,156,925,565 |
|
3,870,639,601 |
|
3,924,202,723 |
From 1 month to 3 months |
|
372,964,126 |
|
378,153,999 |
|
288,142,094 |
|
333,552,210 |
From 3 months to 6 months |
|
351,924,061 |
|
284,396,797 |
|
100,401,517 |
|
342,760,271 |
From 6 months to 12 months |
|
311,728,457 |
|
236,503,073 |
|
33,725,396 |
|
13,392,406 |
From 12 months to 24 months |
|
210,364,472 |
|
250,085,084 |
|
11,714,874 |
|
10,388,584 |
More than 24 months |
|
349,270,361 |
|
433,127,189 |
|
18,691,790 |
|
15,713,621 |
TOTAL |
|
2,544,279,203 |
|
2,739,191,707 |
|
4,323,315,272 |
|
4,640,009,815 |
(*)The figures of this chart include the amounts
for interest accrued and to be accrued. For floating-rate instruments, interest was calculated using the current rate.
In addition, the Bank has issued financial guarantees
and credit commitments with the following breakdown by term considering their maturity date as of December 31, 2023 and 2022:
|
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
|
Up to 1 month |
|
|
1,889,829,494 |
|
2,607,674,595 |
From 1 month to 3 months |
|
|
22,031,136 |
|
20,057,032 |
From 3 months to 6 months |
|
|
13,917,028 |
|
14,712,799 |
From 6 months to 12 months |
|
|
23,063,990 |
|
7,609,973 |
From 12 months to 24 months |
|
|
22,742,910 |
|
1,576,585 |
More than 24 months |
|
|
5,176,587 |
|
2,847,496 |
|
|
|
1,976,761,145 |
|
2,654,478,480 |
The amounts of the Group's financial assets and
liabilities, which are expected to be collected or paid twelve months after the reporting date, are disclosed below:
Financial assets |
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
|
Debt securities at fair value through profit or loss |
|
|
1,651,652 |
|
- |
Other financial assets |
|
|
- |
|
10,824,491 |
Loans and other financing |
|
|
559,634,833 |
|
683,212,273 |
Other debt securities |
|
|
133,067,903 |
|
5,242,340,911 |
Financial assets pledged as collateral |
|
|
34,420,575 |
|
12,769,815 |
|
|
|
|
|
|
Total |
|
|
728,774,963 |
|
5,949,147,490 |
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
289,344 |
|
241,878 |
Other financial liabilities |
|
|
22,099,882 |
|
18,421,874 |
Financing received from the BCRA and other financial institutions |
|
|
8,017,438 |
|
7,438,454 |
|
|
|
|
|
|
Total |
|
|
30,406,664 |
|
26,102,206 |
Refinancing and restructuring agreements
Policies and principles on refinancing
and restructuring agreements
The Group enters into refinancing and restructuring
agreements with customers who so request in order to help them repay their outstanding loans, if these customers are or expect to be in
financial distress to honor their future loan payments.
The basic goal of a refinancing and restructuring
agreement is helping customers achieve financial health over time, by adjusting the repayment schedule of their loans borrowed from the
Group to their new cash flow generation capacity. The use of refinancing and restructuring agreements for other purposes, such as deferring
loss recognition, is contrary to the Group's policies.
The Group's refinancing and restructuring
policies are based on the following general principles:
A refinancing and restructuring agreement
will be authorized on the basis of the customer's capacity to fulfill the new instalment plan. The first step in doing so is identifying
the root-cause of the financial distress, followed by an analysis of the customer's feasibility, including an updated review of that customer's
financial situation, payment capacity and cash generation ability. If the customer is a business, the analysis will also cover the industry
in which it operates.
To the extent possible, the Group will try
to secure new guarantees and/or guarantors of demonstrable creditworthiness to provide further support to the agreement. An essential
part of this process is reviewing the effectiveness of the new and original guarantees.
This analysis is carried out from the customer's
or the group's overall perspective.
Generally, refinancing and restructuring agreements
do not increase the amount of a customer's loan, except for the expenses associated to the agreement itself.
Loan refinancing and restructuring decisions
are not delegated to branches, but are rather made by the pertinent risk units.
Decisions are periodically reviewed to check
whether they are fully consistent with the applicable refinancing and restructuring policies.
For retail customers (individuals), the main
goal of the Group's loan refinancing and restructuring policy is preventing a default due to the customer's temporary liquidity problems,
by implementing structural solutions that do not increase the customer's outstanding loan balance. The required solution is customized
to each particular case, offering facilities to repay the loan in accordance with the following criteria:
| - | Restructuring/refinancing
feasibility analysis based on the customer's payment willingness and capacity, which may be impaired but not nil. Therefore, the customer
should at least repay interest on the agreement in all cases. No agreement may be entered into if that agreement provides a grace period
for both principal and interest. |
| - | Loan refinancing and
restructuring agreements are only allowed when the loans were originally subscribed by the Group. |
| - | Customers subject to
refinancing and restructuring agreements are excluded from marketing campaigns of any kind or nature. |
Within the context of a refinancing or restructuring
arrangement, cure period is defined as the 1-year term following the later of:
| - | The time at which the
restructuring measures are to be postponed. |
| - | The time at which the
exposure has been classified as defaulted. |
| - | The end of the grace
period included in the restructuring agreements. |
In addition, this period may not be shorter
than the period during which the customer has made the material payment.
During the cure period, financing arrangements
will have assigned a 100% PD and will be classified in Stage 3.
At the end of the Stage 3 cure period, the
contract refinancing and restructuring will be transferred to Stage 2 for two additional years.
42.2. Exposure to credit risk
and allowances
Below is the exposure to credit risks and allowances,
measured in accordance with IFRS 9 as per BCRA (expected loss model, except for non-financial government sector's financial assets), as
of December 31, 2023 and 2022:
Exposure to default -
Credit Investment |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.22 |
2,203,067,119 |
190,755,938 |
13,788,074 |
34,346,881 |
4,830,437 |
|
2,446,788,449 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(454,204,088) |
447,788,918 |
26 |
- |
- |
|
(6,415,144) |
From stage 2 to stage 1 |
305,242,199 |
(270,243,612) |
(1,559,295) |
- |
- |
|
33,439,292 |
From stage 1 or 2 to stage 3 |
(9,150,601) |
(72,992,270) |
(2,257,871) |
83,451,814 |
2,311,926 |
|
1,362,998 |
From stage 3 to stage 1 or 2 |
2,058,465 |
4,563,970 |
1,686,371 |
(8,423,833) |
(1,879,057) |
|
(1,994,084) |
Changes without inter-stage transfers |
592,665,828 |
83,056,616 |
2,658,213 |
(4,810,926) |
1,478,056 |
|
675,047,787 |
Newly originated financial assets |
3,669,764,173 |
68,802,178 |
33,723,952 |
7,464,804 |
1,889,891 |
|
3,781,644,998 |
Reimbursements |
(2,359,989,471) |
(52,297,538) |
(33,979,799) |
(12,268,821) |
(2,638,344) |
|
(2,461,173,973) |
Write-offs |
49 |
1,971 |
- |
(26,936,284) |
(1,019,114) |
|
(27,953,378) |
Foreign exchange differences |
209,923,428 |
6,731,759 |
4,766,932 |
73,637 |
3,104,957 |
|
224,600,713 |
Inflation adjustment |
(2,258,370,073) |
(206,344,197) |
(11,894,610) |
(41,512,111) |
(4,258,025) |
|
(2,522,379,016) |
|
|
|
|
|
|
|
|
Balances as of 12.31.23 |
1,901,007,028 |
199,823,733 |
6,931,993 |
31,385,161 |
3,820,727 |
|
2,142,968,642 |
Exposure to default -
Credit Investment |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.21 |
2,189,265,593 |
240,939,176 |
30,794,661 |
39,971,442 |
18,387,635 |
|
2,519,358,507 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(471,166,432) |
482,206,643 |
2,641 |
- |
- |
|
11,042,852 |
From stage 2 to stage 1 |
361,905,499 |
(345,584,207) |
(418,187) |
- |
- |
|
15,903,105 |
From stage 1 or 2 to stage 3 |
(9,346,581) |
(52,958,334) |
(1,816,134) |
61,994,325 |
1,858,953 |
|
(267,771) |
From stage 3 to stage 1 or 2 |
2,091,028 |
4,823,237 |
947,303 |
(9,432,544) |
(1,011,910) |
|
(2,582,886) |
Changes without inter-stage transfers |
187,231,033 |
16,274,229 |
(13,498,252) |
(5,961,671) |
663,737 |
|
184,709,076 |
Newly originated financial assets |
3,373,747,271 |
47,366,732 |
48,311,708 |
8,081,227 |
518,217 |
|
3,478,025,155 |
Reimbursements |
(2,135,585,025) |
(75,829,490) |
(39,866,053) |
(11,013,592) |
(893,878) |
|
(2,263,188,038) |
Write-offs |
- |
1,896 |
- |
(27,850,077) |
(11,462,315) |
|
(39,310,496) |
Foreign exchange differences |
60,428,573 |
6,476,272 |
4,570,375 |
10,304 |
1,527,573 |
|
73,013,097 |
Inflation adjustment |
(1,355,503,840) |
(132,960,216) |
(15,239,988) |
(21,452,533) |
(4,757,575) |
|
(1,529,914,152) |
|
|
|
|
|
|
|
|
Balances as of 12.31.22 |
2,203,067,119 |
190,755,938 |
13,788,074 |
34,346,881 |
4,830,437 |
|
2,446,788,449 |
Exposure to default -
Contingent |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.22 |
606,937,314 |
57,134,423 |
191,832 |
208,471 |
489 |
|
664,472,529 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(117,033,092) |
108,928,359 |
7,649 |
- |
- |
|
(8,097,084) |
From stage 2 to stage 1 |
100,495,003 |
(81,359,833) |
(30,835) |
- |
- |
|
19,104,335 |
From stage 1 or 2 to stage 3 |
(709,683) |
(517,389) |
(113) |
671,579 |
148 |
|
(555,458) |
From stage 3 to stage 1 or 2 |
209,870 |
248,687 |
123 |
(483,870) |
(9,876) |
|
(35,066) |
Changes without inter-stage transfers |
271,584,299 |
30,512,053 |
93,387 |
174,924 |
12,261 |
|
302,376,924 |
Newly originated financial commitments |
451,904,589 |
16,367,782 |
148,707 |
152,073 |
- |
|
468,573,151 |
Reimbursements |
(193,390,262) |
(24,122,220) |
(64,414) |
(250,417) |
(653) |
|
(217,827,966) |
Write-offs |
- |
- |
- |
(530) |
- |
|
(530) |
Foreign exchange differences |
108,579,161 |
9,420,482 |
44,942 |
- |
- |
|
118,044,585 |
Inflation adjustment |
(643,162,381) |
(55,389,364) |
(211,226) |
(265,082) |
(2,023) |
|
(699,030,076) |
|
|
|
|
|
|
|
|
Balances as of 12.31.23 |
585,414,818 |
61,222,980 |
180,052 |
207,148 |
346 |
|
647,025,344 |
Exposure to default -
Contingent |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.21 |
500,543,138 |
38,639,453 |
590,752 |
234,797 |
237 |
|
540,008,377 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(125,190,524) |
118,328,083 |
- |
- |
- |
|
(6,862,441) |
From stage 2 to stage 1 |
95,214,959 |
(81,010,762) |
(978) |
- |
- |
|
14,203,219 |
From stage 1 or 2 to stage 3 |
(727,737) |
(494,257) |
(4,970) |
588,186 |
9,517 |
|
(629,261) |
From stage 3 to stage 1 or 2 |
204,740 |
156,388 |
738 |
(409,953) |
(22,132) |
|
(70,219) |
Changes without inter-stage transfers |
278,863,704 |
12,288,151 |
(84,145) |
32,112 |
18,793 |
|
291,118,615 |
Newly originated financial commitments |
346,732,348 |
14,643,257 |
38,228 |
75,242 |
- |
|
361,489,075 |
Reimbursements |
(183,168,283) |
(17,189,849) |
(150,829) |
(176,439) |
- |
|
(200,685,400) |
Write-offs |
- |
- |
- |
(374) |
- |
|
(374) |
Foreign exchange differences |
29,179,755 |
1,502,331 |
- |
- |
- |
|
30,682,086 |
Inflation adjustment |
(334,714,786) |
(29,728,372) |
(196,964) |
(135,100) |
(5,926) |
|
(364,781,148) |
|
|
|
|
|
|
|
|
Balances as of 12.31.22 |
606,937,314 |
57,134,423 |
191,832 |
208,471 |
489 |
|
664,472,529 |
Allowances - Credit Investment |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.22 |
16,925,161 |
17,633,368 |
374,372 |
28,176,032 |
3,481,601 |
|
66,590,534 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(10,458,182) |
40,839,390 |
7 |
- |
- |
|
30,381,215 |
From stage 2 to stage 1 |
4,601,607 |
(18,707,615) |
(20,635) |
- |
- |
|
(14,126,643) |
From stage 1 or 2 to stage 3 |
(560,500) |
(21,638,516) |
(75,783) |
50,014,912 |
1,480,010 |
|
29,220,123 |
From stage 3 to stage 1 or 2 |
172,982 |
426,288 |
(16,775) |
(6,848,617) |
(1,267,677) |
|
(7,533,799) |
Changes without inter-stage transfers |
8,412,492 |
4,143,841 |
(19,127) |
15,024,638 |
1,880,271 |
|
29,442,115 |
Newly originated financial assets |
29,414,973 |
1,242,944 |
903,554 |
4,751,953 |
1,287,423 |
|
37,600,847 |
Reimbursements |
(20,521,825) |
(1,702,519) |
(884,843) |
(8,959,143) |
(1,973,698) |
|
(34,042,028) |
Write-offs |
- |
(1) |
- |
(25,812,981) |
(981,656) |
|
(26,794,638) |
Foreign exchange differences |
2,106,658 |
180,585 |
176,145 |
9,308 |
2,106,455 |
|
4,579,151 |
Inflation adjustment |
(16,233,124) |
(14,839,242) |
(330,896) |
(33,708,598) |
(3,266,468) |
|
(68,378,328) |
|
|
|
|
|
|
|
|
Balances as of 12.31.23 |
13,860,242 |
7,578,523 |
106,019 |
22,647,504 |
2,746,261 |
|
46,938,549 |
Allowances - Credit Investment |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.21 |
18,157,029 |
14,926,533 |
3,645,643 |
31,052,636 |
16,876,099 |
|
84,657,940 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(9,918,677) |
39,428,960 |
286 |
- |
- |
|
29,510,569 |
From stage 2 to stage 1 |
4,559,146 |
(19,757,792) |
(31,218) |
- |
- |
|
(15,229,864) |
From stage 1 or 2 to stage 3 |
(560,627) |
(14,944,361) |
(499,358) |
33,819,212 |
525,877 |
|
18,340,743 |
From stage 3 to stage 1 or 2 |
109,384 |
506,059 |
410,240 |
(6,613,450) |
(410,483) |
|
(5,998,250) |
Changes without inter-stage transfers |
4,984,272 |
7,076,449 |
(2,698,241) |
14,362,564 |
772,856 |
|
24,497,900 |
Newly originated financial assets |
36,884,267 |
2,169,103 |
2,729,687 |
4,713,037 |
329,941 |
|
46,826,035 |
Reimbursements |
(26,555,818) |
(3,130,242) |
(2,410,057) |
(7,624,830) |
(456,536) |
|
(40,177,483) |
Write-offs |
- |
(252) |
- |
(24,857,498) |
(11,347,185) |
|
(36,204,935) |
Foreign exchange differences |
596,292 |
144,530 |
178,769 |
5,898 |
1,102,037 |
|
2,027,526 |
Inflation adjustment |
(11,330,107) |
(8,785,619) |
(951,379) |
(16,681,537) |
(3,911,005) |
|
(41,659,647) |
|
|
|
|
|
|
|
|
Balances as of 12.31.22 |
16,925,161 |
17,633,368 |
374,372 |
28,176,032 |
3,481,601 |
|
66,590,534 |
Allowances - Contingent |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.22 |
5,472,974 |
2,748,134 |
13,397 |
155,061 |
324 |
|
8,389,890 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(1,653,181) |
5,741,923 |
249 |
- |
- |
|
4,088,991 |
From stage 2 to stage 1 |
1,246,120 |
(4,322,909) |
(9,305) |
- |
- |
|
(3,086,094) |
From stage 1 or 2 to stage 3 |
(15,467) |
(90,550) |
(28) |
393,937 |
55 |
|
287,947 |
From stage 3 to stage 1 or 2 |
34,782 |
27,099 |
2,009 |
(387,328) |
(26,185) |
|
(349,623) |
Changes without inter-stage transfers |
(2,053,989) |
(1,037,861) |
6,780 |
212,782 |
30,593 |
|
(2,841,695) |
Newly originated financial commitments |
7,677,107 |
342,423 |
5,942 |
104,689 |
- |
|
8,130,161 |
Reimbursements |
(1,715,510) |
(471,833) |
(4,724) |
(155,151) |
(2,782) |
|
(2,350,000) |
Write-offs |
- |
- |
- |
(407) |
- |
|
(407) |
Foreign exchange differences |
918,539 |
50,832 |
1,130 |
- |
- |
|
970,501 |
Inflation adjustment |
(5,219,426) |
(1,840,096) |
(12,533) |
(193,495) |
(1,751) |
|
(7,267,301) |
|
|
|
|
|
|
|
|
Balances as of 12.31.23 |
4,691,949 |
1,147,162 |
2,917 |
130,088 |
254 |
|
5,972,370 |
Allowances - Contingent |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.21 |
3,210,578 |
1,627,195 |
192,807 |
147,653 |
- |
|
5,178,233 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(1,221,399) |
5,294,905 |
- |
- |
- |
|
4,073,506 |
From stage 2 to stage 1 |
859,978 |
(3,416,695) |
(835) |
- |
- |
|
(2,557,552) |
From stage 1 or 2 to stage 3 |
(33,728) |
(82,105) |
(7,589) |
320,676 |
22,736 |
|
219,990 |
From stage 3 to stage 1 or 2 |
41,380 |
20,148 |
2,329 |
(296,191) |
(55,589) |
|
(287,923) |
Changes without inter-stage transfers |
984,086 |
454,802 |
(100,182) |
131,293 |
39,278 |
|
1,509,277 |
Newly originated financial commitments |
4,606,953 |
303,431 |
7,704 |
45,166 |
- |
|
4,963,254 |
Reimbursements |
(1,208,080) |
(445,142) |
(50,722) |
(102,568) |
- |
|
(1,806,512) |
Write-offs |
- |
- |
- |
(324) |
- |
|
(324) |
Foreign exchange differences |
246,982 |
6,969 |
- |
- |
- |
|
253,951 |
Inflation adjustment |
(2,013,776) |
(1,015,374) |
(30,115) |
(90,644) |
(6,101) |
|
(3,156,010) |
|
|
|
|
|
|
|
|
Balances as of 12.31.22 |
5,472,974 |
2,748,134 |
13,397 |
155,061 |
324 |
|
8,389,890 |
43. Restrictions to the distribution
of earnings
| a) | In accordance with the regulations of the BCRA,
20% of the income for the year plus/less adjustments of prior years' results, transfers from other comprehensive income to retained earnings
and less the accumulated loss at the end of the previous year, if any, must be allocated to the legal reserve. Therefore, the next Shareholders’
Meeting shall apply 32,908,380 of Unappropriated retained earnings to increase the balance of such reserve. |
| b) | The mechanism to be followed by financial to
assess distributable balances is defined by the BCRA by means of the regulations in force on “Distribution of earnings” provided
that certain situations are not verified, namely: to receive financial assistance from such entity due to illiquidity, shortfalls as regards
minimum capital requirements or minimum cash requirements, to fall under the scope of the provisions of Sections 34 and 35 bis of the
Financial Institutions Law (sections referred to regularization and correction plans and restructuring of the Entity), among other conditions
detailed in the referred communication to be complied with. Furthermore, the distribution of earnings as approved by the Entity’s
Shareholders’ Meeting shall not be effective unless approved by the Superintendency of Financial and Foreign Exchange Institutions
of the BCRA. |
In addition, no distributions of earnings shall be
made with the profit resulting from the first time application of IFRS, which shall be included as a special reserve, and the balance
of which as of December 31, 2023 amounts to 73,946,842.
Besides, the Entity shall verify that, once
the proposed distribution of earnings is made, capital conservation margin equivalent to 2.5% of the risk-weighted assets is kept, which
is additional to the minimum capital requirement set forth by law, and shall be paid in with level 1 ordinary capital (COn1), net of deductible
concepts (CDC0n1).
In accordance with the provisions of Communication
“A” 7719 of the BCRA, effective since April 1 to December 31, 2023, financial institutions may distribute earnings for up
to 40% of the amount that would have corresponded to them. As from April 1, 2023, those financial institutions that have obtained the
BCRA authorization, shall distribute earnings in 6 equal, monthly and consecutive installments.
| c) | Pursuant to the provisions of General Resolution
No. 622 of the CNV, the Shareholders’ Meeting that considers the annual financial statements shall resolve upon the specific use
of accumulated earnings of the Entity. |
In compliance with the above, on May 15, 2020, the
Ordinary and Extraordinary Shareholders’ Meeting was held approving the partial reversal of the Optional Reserve for future distribution
of earnings, in order to allocate the amount of 2,500,000 (28,048,745 in restated amounts) to the payment of a cash dividend subject to
the prior authorization of the BCRA.
On November 20, 2020, the General Extraordinary
Shareholders’ Meeting was held approving the partial reversal of the optional reserve for future distribution of earnings in the
amount of 12,000,000 (114,272,504 in restated amounts) and considering a supplementary dividend for the same amount, in order to increase
the amount of the cash dividend approved by the General Ordinary and Extraordinary Shareholders’ Meeting held on May 15, 2020, all
subject to the prior authorization of the BCRA.
In compliance with the above, on April 20, 2021,
the Ordinary and Extraordinary Shareholders’ Meeting was held approving the partial reversal of the Optional Reserve for future
distribution of earnings, in order to allocate the amount of 7,000,000 (54,517,622 in restated amounts) to the payment of a cash dividend
subject to the prior authorization of the BCRA.
On November 3, 2021, the General Extraordinary Shareholders’
Meeting was held approving the partial reversal of the optional reserve for future distribution of earnings in the amount of 6,500,000
(40,942,629 in restated amounts) and considering a supplementary dividend for the same amount, in order to increase the amount of the
cash dividend approved by the General Ordinary and Extraordinary Shareholders’ Meeting held on April 20, 2021, all subject to the
prior authorization of the BCRA.
On April 29, 2022, the General Ordinary and Extraordinary
Shareholders’ Meeting was held and the following was approved:
| – | Allocate 3,934,134 (23,864,219 in restated
amounts) out of Unappropriated retained earnings for fiscal year 2021 to the Legal Reserve. |
| – | Allocate 15,736,535 (95,456,876 in restated
amounts) to Unappropriated retained earnings for fiscal year 2021 to the Optional Reserve for future distribution of earnings. |
| – | Also, in relation to the dividends approved
by the Shareholders' Meetings of May 15, 2020, November 20, 2020, April 20, 2021 and November 3, 2021, authorization was requested to
the BCRA for the distribution of 13,165,209 (in nominal values). |
On June 7, 2022, the BCRA approved the distribution
of 13,165,209 on account of dividends, which were made available to the shareholders.
On April 28, 2023, the General Ordinary and Extraordinary Shareholders’
Meeting was held and the following was approved:
| – | Allocate 11,765,158 (36,637,383 in restated
amounts) out of Unappropriated retained earnings for fiscal year 2022 to the Legal Reserve. |
| – | Allocate 47,060,630 (146,549,534 in restated
amounts) to Unappropriated retained earnings for fiscal year 2022 to the Optional Reserve for future distribution of earnings. |
| – | Allocate 35,566,224 (77,877,236 in nominal
amounts) to the payment of dividends by partially reversing the Optional Reserve for future distribution of earnings. |
| – | Request the BCRA authorization to pay dividends
for 50,401,015 (in nominal values). |
On May 31, 2023, the BCRA approved the distribution
of 50,401,015 as dividends which were paid in kind through the delivery of 49,524,433,015 Argentine discount government bills in Argentine
pesos (in nominal values), adjusted by CER and maturing on November 23, 2023, (ISIN ARARGE520DT9) Ticker X23N3 (Caja de Valores code 9197),
based on the following schedule:
2023 |
No. of Installment |
Cut-off date |
Payment Date |
Argentine Treasury Bill in Pesos adjusted by Cer
at Discount. Maturity 11-23-23
Nominal value |
1 |
June 22 |
June 27 |
8,254,072,169 |
2 |
July 17 |
July 20 |
8,254,072,169 |
3 |
August 3 |
August 8 |
8,254,072,169 |
4 |
September 5 |
September 8 |
8,254,072,169 |
5 |
October 2 |
October 5 |
8,254,072,169 |
6 |
October 27 |
November 1 |
8,254,072,169 |
As of December 31, 2023, the payment of dividends
approved by the Shareholders’ Meetings for the years 2020, 2021 and 2022 was completed.
44. Restricted assets
As of December 31, 2023 and 2022, the Group has
the following restricted assets:
| a) | The Entity applied the following assets as
security for loans agreed under the Global Credit Program for micro, small and medium-sized enterprises granted by the Inter-American
Development Bank (IDB). |
|
12.31.23 |
|
12.31.22 |
|
|
|
|
Argentine Treasury Bonds adjusted by CER. Maturity 2024 |
12,799 |
|
128,642 |
|
|
|
|
Total |
12,799 |
|
128,642 |
| b) | Also, the Entity has accounts, deposits, repo
transactions and trusts applied as guarantee for activities related to credit card transactions, with automated clearing houses, forward
transactions, foreign currency futures, court proceedings and leases in the amount of 261,634,742 and 143,854,280 as of December 31, 2023
and 2022, respectively (see Note 10). |
45. Banking deposits guarantee
insurance system
Law No. 24,485 and Decree No. 540/95 provided
for the creation of the Deposit Guarantee Insurance System, which was assigned the characteristics of being limited, mandatory and onerous,
with the purpose of covering the risks of bank deposits, in a subsidiary and complementary manner to the system of privileges and protection
of deposits established by the Financial Institutions Law.
That law provided for the incorporation of the
company “Seguros de Depósitos Sociedad Anónima” (SEDESA) for the exclusive purpose of managing the Deposits
Guarantee Fund, the shareholders of which, pursuant to the changes introduced by Decree No. 1292/96, will be the BCRA with at least one
share and the trustees of the trust with financial institutions in the proportion determined by the BCRA for each, based on their contributions
to the Deposit Guarantee Fund.
Deposits in pesos and foreign currency made with
the participating entities under the form of checking accounts, savings accounts, time deposits or otherwise as determined by the BCRA
up to the amount of 6,000 and which meet the requirements of Decree No. 540/95 and those to be set forth by the enforcement authority
shall fall within the scope of said decree.
In August 1995, that company was incorporated, and
the Entity has an 8.6374% share of the corporate stock as of December 31, 2022 (BCRA Communication “B” 12503).
As of December 31, 2023 and 2022, the contributions
to the Fund have been recorded in the item “Other operating expenses - Contributions to the deposits guarantee fund” in the
amounts of 5,728,161 and 6,330,105, respectively.
46. Minimum cash and minimum
capital requirements
46.1. Minimum cash requirements
The BCRA establishes different prudential regulations
to be observed by financial institutions, mainly regarding solvency levels, liquidity and credit assistance levels.
Minimum cash regulations set forth an obligation
to keep liquid assets in relation to deposits and other obligations recorded for each period. The items included for the purpose of meeting
that requirement are detailed below:
Accounts |
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Balances at the BCRA |
|
|
|
|
|
|
|
|
|
BCRA - Current account not restricted |
|
358,900,596 |
|
502,282,567 |
BCRA - Special guarantee accounts - restricted (Note 10) |
|
96,926,260 |
|
43,180,603 |
|
|
|
|
|
|
|
455,826,856 |
|
545,463,170 |
|
|
|
|
|
Argentine Treasury Bonds in pesos at 0.7% Badlar Private Rate. Maturity 11-23-2027 |
|
14,771,877 |
|
37,662,724 |
Argentine Treasury Bonds in pesos. Maturity 05-23-2027 |
|
32,406,871 |
|
100,997,240 |
Argentine Treasury Bonds in pesos. Maturity 08-23-2025 |
|
49,502,692 |
|
- |
Argentine Treasury Bonds in pesos adjusted by Cer 4.25%. Maturity 12-13-2024 |
|
218,925,057 |
|
- |
Argentine Treasury Bonds in pesos adjusted by Cer 4%. Maturity 10-14-2024 |
|
189,705,541 |
|
- |
Argentine Treasury Bonds in pesos adjusted by Cer 4.25%. Maturity 02-14-2025 |
|
56,074,420 |
|
- |
Argentine Treasury Bonds in pesos adjusted by Cer 2%. Maturity 11-09-2026 |
|
216,222,852 |
|
- |
|
|
|
|
|
Other securities |
|
791,192 |
|
57,721,176 |
|
|
|
|
|
BCRA Liquidity Bills |
|
60,435,133 |
|
1,505,491,903 |
|
|
|
|
|
TOTAL |
|
1,294,662,491 |
|
2,247,336,213 |
The balances disclosed are consistent with those reported by the Bank.
46.2. Minimum cash requirements
The regulatory breakdown of minimum capital requirements is as follows
at the above-mentioned dates:
Minimum capital requirement |
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Credit risk |
|
222,092,365 |
|
219,153,734 |
Operational risk |
|
90,508,105 |
|
88,131,816 |
Market risk |
|
6,537,813 |
|
4,611,870 |
Non-compliance (1) |
|
17,505,613 |
|
- |
|
|
|
|
|
Paid-in |
|
1,140,647,877 |
|
958,835,096 |
|
|
|
|
|
Surplus |
|
804,003,981 |
|
646,937,676 |
(1) The increase observed in
the minimum capital requirement for credit risk is due to the non-compliance with the maximum limit established by the BCRA for the financing
to the non-financial government sector during 15 days of December 2023. According to the provisions of the regulations, this non-compliance
causes an increase in the minimum capital requirement for credit risk for an amount equivalent to 100% of the surplus, as from the month
in which the non-compliance occurs and for as long as it continues. In the case of credit ratios, the computation of the deviation will
be made on the basis of the monthly average of daily surpluses. As of the date of these Financial Statements, the aforementioned situation
had been remedied.
47. Compliance
with the provisions to act in the different categories of agent defined by the Argentine Securities Commission
Considering the transactions carried out by Banco
BBVA Argentina S.A. and according to the different categories of agent set forth by General Resolution No. 622-13 of the CNV, on September
9 and 19, 2014, the Entity was registered as Custodian Agent of Collective Investment Products of Mutual Funds under No. 4 and Settlement
and Clearing Agent – Comprehensive (ALyC) under No. 42, respectively.
Section 8 of General Resolution No. 821 of the CNV
sets forth that the minimum shareholders’ equity required to operate as ALyC shall be equal to 470,350 UVAs adjusted by CER, Law
No. 25827. As of December 31, 2023, it amounts to 217,960. The Entity’s shareholders’ equity exceeds the minimum shareholders’
equity required by said resolution.
Besides, the required minimum contra-account of
108,980, fifty percent (50%) of the minimum shareholders’ equity amount, includes Argentine Treasury Bonds in pesos adjusted by
CER due 2024 as of December 31, 2023 deposited with the account opened at Caja de Valores S.A., named “Depositor 1647 Brokerage
Account 5446483 BBVA Banco Francés minimum cash contra-account”.
Furthermore, pursuant to the requirements of General
Resolution No. 792 issued by the CNV on April 30, 2019, mutual fund management companies’ minimum shareholders’ equity will
be comprised of 150,000 UVAs plus 20,000 UVAs, per each additional mutual fund under management. As concerns the cash contra-account,
the amount to be paid shall be equal to no less than fifty per cent (50%) of minimum shareholders' equity.
The subsidiary BBVA Asset Management Argentina S.A.U.
Sociedad Gerente de Fondos Comunes de Inversión, as Mutual Funds Management Agent, registered on August 7, 2014 under No. 3, met
the CNV minimum cash contra-account requirements with 2,792,293 shares of FBA Renta Pesos Fondo Común de Inversión, in the
amount of 215,506, through custody account No. 493-0005459481 held at BBVA Banco Francés S.A. As of December 31, 2023, the company's
Shareholders’ Equity exceeds the minimum amount imposed by the CNV.
48. Compliance
with the provisions of the Argentine Securities Commission – Documentation
The CNV issued General Resolution No. 629 on August
14, 2014 to introduce changes to its own rules governing the maintenance and safekeeping of corporate books, accounting records and business
documentation. In this respect, it is reported that the Bank has delivered the documentation that supports its operations for the periods
still open to audit for safekeeping in Administradora de Archivos S.A. (AdeA), domiciled at Ruta 36 Km. 31.5, district of Florencio Varela,
Province of Buenos Aires.
In addition, it is informed that a detail of the
documentation delivered for safekeeping, as well as the documentation referred to in Art. 5. a.3), Section I of Chapter V of Title II
of the CNV rules is available at the Bank’s registered office. (2013 consolidated text and amendments).
49. Trust activities
On January 5, 2001, the Board of Directors of BCRA
issued Resolution No. 19/2001, providing for the exclusion of Mercobank S.A.’s senior liabilities under the terms of section 35
bis of the Financial Institutions Law, the authorization to transfer the excluded assets to the Bank as a trustee of the Diagonal Trust,
and the authorization to transfer the excluded liabilities to beneficiary banks. On the same date, Mercobank S.A., as Settler, and the
Bank, as Trustee, entered into the agreement to set up the Diagonal Trust in relation to the exclusion of assets as provided in the above-mentioned
resolution. As of December 31, 2023 and 2022, the assets of Diagonal Trust amount to 2,427 and 7,559, respectively, considering their
recoverable values.
In addition, the Entity, in its capacity as Trustee
in the Corp Banca Trust, recorded the selected assets on account of the redemption in kind of participation certificates in the amount
of 4,177 and 13,008 as of December 31, 2023 and 2022, respectively.
In addition, the Entity acts as a Trustee in 12
non-financial trusts, in no case as personally liable for the liabilities assumed in the performance of the contract obligations. Such
liabilities will be settled with and up to the full amount of the trust assets and the proceeds therefrom. The non-financial trusts concerned
were set up to manage assets and/or secure the receivables of several creditors (beneficiaries) and the trustee was entrusted with the
management, care, preservation and custody of the corpus assets until (i) noncompliance with the obligations by the debtor (settler) vis-a-vis
the creditors (beneficiaries) is verified, when such assets are sold and the proceeds therefrom are distributed (net of expenses) among
all beneficiaries, the remainder (if any) shall be delivered to the settler, or (ii) all contract terms and conditions are complied with,
in which case all the trust assets will be returned to the settler or to whom it may indicate. The trust assets totaled 1,986,715 and
1,762,769 as of December 31, 2023 and 2022, respectively, and consist of cash, creditors' rights, real estate and shares.
50. Mutual funds
As of December 31, 2023 and 2022, the Entity holds
in custody, as Custodian Agent of Mutual Funds managed by BBVA Asset Management Argentina S.A.U. Sociedad Gerente de Fondos Comunes de
Inversión, time deposit certificates, shares, corporate bonds, government securities, mutual funds, deferred payment checks, BCRA
instruments, Buenos Aires City Government Bills, ADRS, Buenos Aires Province Government Bills and repos for 113,893,762 and 340,767,081,
which are part of the mutual fund portfolio and are recorded in debit balance memorandum accounts “Control – Other.”
The Mutual Fund assets are as follows:
Mutual funds |
12.31.23 |
|
12.31.22 |
|
|
|
|
FBA Renta Pesos |
1,234,721,816 |
|
1,270,069,925 |
FBA Acciones Argentinas |
20,360,613 |
|
6,843,426 |
FBA Calificado |
15,907,320 |
|
6,834,143 |
FBA Ahorro Pesos |
4,872,732 |
|
21,344,688 |
FBA Acciones Latinoamericanas |
4,313,001 |
|
3,242,725 |
FBA Renta Fija Plus |
3,989,036 |
|
33,865,935 |
FBA Renta Mixta |
1,994,784 |
|
2,194,707 |
FBA Bonos Argentina |
1,206,746 |
|
4,528,582 |
FBA Renta Publica I |
558,410 |
|
742,261 |
FBA Horizonte |
485,395 |
|
1,200,722 |
FBA Gestión I |
64,686 |
|
133,945 |
FBA Bonos Globales |
16,304 |
|
87,981 |
FBA Retorno Total I |
12,927 |
|
60,167 |
FBA Horizonte Plus |
11,288 |
|
36,590 |
FBA Renta Fija Local |
3,827 |
|
7,925 |
FBA Renta Publica II |
- |
|
- |
|
1,288,518,885 |
|
1,351,193,722 |
51. Penalties and administrative proceedings instituted
by the BCRA
According to the requirements of Communication “A”
5689, as amended, issued by the BCRA, below is a detail of the administrative and/or disciplinary penalties as well as the judgments issued
by courts of original jurisdiction in criminal matters, enforced or brought by the BCRA of which the Entity has been notified:
Administrative proceedings commenced by the BCRA
“Banco Francés S.A. over breach
of Law 19.359.” Administrative Proceedings for Foreign Exchange Offense initiated by the BCRA, notified on February 22, 2008
and identified under No. 3511, File No. 100194/05, on grounds of a breach of the Criminal Foreign Exchange Regime as a result of the purchase
and sale of US Dollars through the BCRA in excess of the authorized amounts. They totaled 44 transactions involving the Bank's branches
099, 342, 999 and 320. The individuals/entities subject to these proceedings were Banco BBVA Argentina S.A. and the following Bank officers:
Julio Lopez, Marcelo Canestri, Humberto Daniel De Luca, Mario Daniel Breno, Agustín Garicia, Gustavo Pedro Vitale, Eduardo Carlos
Hombre, Ana Mercedes Pacheco, Carlos Alberto Klapproth, Ernesto Salgado, Adriana Lilian Olmedo, Estrella Blanca Fernandez, Francisco Meringolo,
Daniela Vanesa Guevara, Marcelo Mozillo, Cintia Tamara Ortiz, Maria Elena Fridman, Maria Antonia Cejo Rial, Carlos Alberto Gonzalez, Johana
Andrea Frezza, Haroldo Daniel Gramajo and Andrea Patricia Ramirez, who served in the capacities described below at the date when the breaches
were committed: (i) two Territory Managers, (ii) four Branch Managers, (iii) four Heads of Back-Office Management and (iv) twelve cashiers.
On August 21, 2014, the court acquitted the individuals/entities above from all charges. The General Attorney’s Office filed an
appeal and Room A of the Appellate Court with jurisdiction over Criminal and Economic Matters confirmed the Bank’s and the involved
officers’ acquittal from all charges. The General Attorney’s Office filed an Extraordinary Appeal, which was granted and as
of the date of these financial statements is being heard by the Argentine Supreme Court of Justice. The case has been called for resolution.
The case has been called for resolution.
·
“Banco Francés S.A. over breach of Law 19.359.”
Administrative Proceedings for Foreign Exchange Offense initiated by the BCRA, notified on December 1, 2010 and identified under
No. 4539, File No. 18398/05 where charges focus on fake foreign exchange transactions, through false statements upon processing thereof,
carried out by personnel from five branches in Mar del Plata, which would entail failure to comply with the costumer identification requirements
imposed by foreign exchange rules and regulations through Communication “A” 3471, paragraph 6. The individuals/entities subject
to these proceedings were Banco BBVA Argentina S.A., the five regular members of the Board of Directors and the following Bank officers
who served in the capacities described below at the date when the breaches were committed: (i) the Retail Bank Manager, (ii) the Territory
Manager, (iii) the Area Manager, (iv) a commercial aide to the Area Manager, (v) five Branch Managers, (vi) four Heads of Back-Office
Management, (vii) five Main Cashiers and (viii) one cashier. To date, the case is being heard by Federal Court No. 3, Criminal Division
of the City of Mar del Plata, under File No. 16377/2016. On June 21, 2017, the court sought to obtain further evidence on its own initiative
ordering that an official letter should be sent to the BCRA for it to ascertain if the rules governing the charges brought in the Case
File No. 18398/05 Proceedings No. 4539 have been subject to any change. The BCRA answered the request from the Court, stating that noncompliance
with the provisions of Communication “A” 3471 would not currently be subject to any change that may imply a lesser offense.
On September 30, 2019, the court of original jurisdiction rendered judgment against the Bank for its involvement in the transaction imposing
a fine of US$ 592,000, while imposing fines to the individuals involved for the aggregate amount of US$ 518,766 and Euro 48,500. The
Bank is jointly and severally liable for the aforementioned fines. The Bank's Directors Jorge Carlos Bledel, Javier D. Ornella, Marcelo
Canestri and Oscar Castro and Territory Managers Oscar Fantacone and Jorge Allen were acquitted from all charges. An appeal was filed
on behalf of Banco BBVA Argentina S.A. and its employees asking for the reversal of the decision or otherwise significant reductions
of the amounts involved. On August 24, 2021, the Federal Appellate Court of Mar de Plata resolved to declare the action extinguished
based on the grounds of violation of the reasonable term and consequently acquit Banco BBVA Argentina S.A., Pablo Bistacco, Graciela
Alonso, Néstor O. Baquer, Hugo Benzan, Mariela Espinosa, Jorge Fioritti, Liliana Paz, Alberto Giménez, Jorge Elizalde,
Elizabeth Mosquera, Carlos Barcellini, Carlos O. Alfonzo, Samuel Alanis, Julián Gabriel Burgos, for the facts that were condemned
in the present case for violation of Law No. 19.359, and the relevant regulations. In view of this ruling, the Federal Prosecutor filed
an extraordinary federal appeal, which was rejected in February 2024.
·
“Banco Francés S.A. over breach of Law 19.359.” Administrative Proceedings
for Foreign Exchange Offense initiated by the BCRA, notified on July 26, 2013 and identified under No. 5406, File No. 100443/12 where
charges are concerned with fake foreign exchange transactions through false statements upon processing thereof incurred by personnel in
Branch 087 - Salta -, which would entail a failure to comply with the costumer identification requirements imposed by foreign exchange
rules and regulations through Communication “A” 3471, Paragraph 6. The individuals/entities subject to these proceedings were
Banco BBVA Argentina S.A. and the following Bank officers who served in the capacities described below at the date when the breaches were
committed: (i) the Branch Manager (ii) the Back Office Management Head, (iii) the Main Cashier and (iv) two cashiers. The trial period
came to a close and the BCRA must send the file to Salta’s Federal Court. As of the date hereof, the case file has not been sent
to court.
·
“Banco Francés S.A. over breach of Law 19.359.”
Administrative Proceedings for Foreign Exchange Offense initiated by the BCRA, notified on December 23, 2015 and identified under
No. 6684, File No. 100068/13. The proceedings were brought for allegedly having completed operations under Code 631 “Professional
and technical business services” for ROCA ARGENTINA S.A. against the applicable exchange regulations (Communications “A”
3471, “A” 3826 and “A” 5264), involving the incomplete verification of the services provided. The individuals/entities
subject to these proceedings were Banco BBVA Argentina S.A. and two Bank officers holding the positions described below at the date when
the breaches were committed: (i) the Foreign Trade Manager (Alejandro Chiaradía) and (ii) an officer of the Area (Horacio Perotti).
The BCRA has decided that the trial period has come to an end. The case is being heard by Federal Court No. 2, Criminal Division of Lomas
de Zamora, Province of Buenos Aires, under File No. 39130/2017. On October 26, 2017, the Entity filed a request for retroactive application
of the most favorable criminal law, as through Communication “A” 5264, whereby the restriction on foreign trade transactions
was removed, the payment of services abroad was reinstated.
·
“Banco Francés S.A. over breach of Law 19.359.” Administrative
proceedings for Foreign Exchange Offense initiated by the B.C.R.A. notified on March 15, 2021 and identified under No. 7545, file No.
381/22/21. The charge consists of the alleged breach of Communication "A" 6770, corresponding to transactions carried out by
the companies MULTIPOINT S.A. and TELECENTRO S.A. Multipoint S.A. challenges transactions for a total amount of US$ 800,000, alleging
the alleged breach of Communication "A" 6770, paragraph 11, when three exchange transactions were carried out under concept
code P8 (Other financial loans) in order to pre-cancel a financial loan from a loan agreement entered into on April 5, 2019 whose original
maturity date was April 5, 2021. The latter included an addendum executed on October 18, 2019 modifying the third clause of the aforementioned
loan agreement and setting the payment date of the principal on October 18, 2019. According to the B.C.R.A., this would be an early cancellation
in breach of the aforementioned rule. (ii) TELECENTRO S.A. challenges a transaction for the amount of US$ 185,724, alleging the alleged
breach of Communication "A" 6770, paragraph 12, when a transaction was carried out under concept code B07 (payments in view
of imports of goods) was carried out, which pre-paid on October 24, 2019, a commercial debt arising from two invoices that had payment
date on October 29, 2019. The individuals/entities subject to these proceedings were Banco BBVA Argentina S.A. and two Bank officers
holding the positions described below at the date when the breaches were committed: (i) the Foreign Trade Manager and (ii) an officer
of the Area. The relevant answers to the charges were filed. On October 24, 2022, the Trial Court in Criminal and Economic Matters No.
4 of the City of Buenos Aires issued an unfavorable court ruling. On May 10, 2023, the Court decided to: I. Confirm point I of the appealed
decision rejecting the grounds for unconstitutionality upheld by the defense of Rubén José́ Lauriente, Noelia María
Sorbello and BANCO BBVA ARGENTINA S.A. II. Confirm partially operating paragraphs II, III and IV of the appealed decision convicting
Rubén José́ Lauriente, Noelia María Sorbello and BANCO BBVA ARGENTINA S.A. for the event specified in section
(b) of whereas clause VI hereof (sections 1(e) and 2(f)), Law No. 19,359), and revoke partially the abovementioned operating paragraphs
convicting the aforementioned for the event specified in section (a) of the VI whereas clause (note added: the Multipoint S.A. event)
of this vote. III. Amend the fines imposed on Rubén José́ Lauriente, Noelia María Sorbello and BANCO BBVA ARGENTINA
S.A, which are set in an amount equivalent to USD 2,000 (two thousand US dollars) each. IV. With legal costs. The fines were paid. The
case has concluded.
·
Banco BBVA ARGENTINA S.A. Financial summary proceedings initiated by the B.C.R.A. Notified
on June 28, 2021 and identified under No. 1587, file No. 388/55/21. The charge consists of the alleged breach of paragraph 7.2 of Communication
"A" 6981 by assisting (without prior approval of the BCRA) Cargill S.A. through a checking account overdraft amounting to $
167 million from April 29, 2020 to May 3, 2020, since as it had bonds taken as of April 22, 2020, it should have waited 90 calendar days
without executing repo transactions and/or surety bonds, before being assisted. Likewise, during May and June 2020, Cargill’s checking
account disclosed credit balances, which were generally covered at the end of the day. In this regard, it should be noted that Banco BBVA
Argentina S.A. violated paragraph 7.2 of the revised text of the rules on "Credit Policy", which strictly includes the restriction
on the granting of intraday (within the same day) assistance. The individuals/entities subject to these proceedings were Banco BBVA Argentina
S.A. (30-50000319-3); María Isabel Goiri Lartitegui; Jorge Delfín Luna; Alfredo Castillo Triguero; Juan Manuel Ballesteros
Castellano; Oscar Miguel Castro; Gabriel Eugenio Milstein; Adriana María Fernandez De Melero; José Santiago Fornieles; Darío
Javier Berkman; Carlos Eduardo Elizalde and Nicolás Herbert Bohtligk. The relevant answers to the charges were filed on August
4, 2021. On September 14, 2023, the Resolution of the BCRA was notified, confirming the initial charges and rejecting the defenses regarding
the interpretation of the regulation and the inexistence of intraday financing due to the way the proceeds from collections operate. Therefore,
the breach of the regulations was considered to be proven and a fine was imposed. The amount in pesos of the fines applied is detailed
below. Banco BBVA Argentina S.A. $24,000,000. Board of Directors: Oscar Castro $2,591,589 Gabriel Milstein $ 2,591,589, Isabel Goiri $2,565,930
Adriana Melero $ 2,565,930, Jorge Luna $2,565,930, Alfredo Castillo $ 2,565,930, Juan Manuel Ballesteros $2,565,930. Employees: Carlos
Elizalde $1,710,620, Nicolás Bohtlingk $1,710,620, Darío Berkman $1,710,620, José Fornieles $855,310. TOTAL $47,999,998.
The resolution is appealed.
| · | BBVA ARGENTINA S.A. Financial summary proceedings
for Foreign Exchange Offence brought by the B.C.R.A. Notified on October 25, 2022, and identified under No. 7835, related to foreign
exchange transactions performed in alleged noncompliance with the provisions established by point 9-A16 of BCRA Communiqué “A”
No. 6770 referring to notes related to transactions performed between residents and import prepayments. Due to the link between cases
and procedural economy, five cases have been filed with the oversight agency. The infringement stands at USD 1,414, 526.28. The
defendants are Banco BBVA Argentina S.A. (Argentine tax identification No. 30-50000319-3) and the following officials and employees: Ruben
Lauriente, Noelia Sorbello, Juan Manuel Olives, Santiago Alejandro Gonzales, Mario Gustavo Dellamea, Maria Teresa Palacios, Mirtha Susana
Monteleone and Gustavo Cara. The procedural status of the case is open for trial. |
The Group and its legal advisors estimate that a
reasonable interpretation of the applicable regulations in force was made and do not expect an adverse financial impact from these cases.
52. Capital management and corporate governance transparency
policy
I.
Board of Directors
According to BBVA Argentina S.A.'s bylaws, the Entity
shall be managed by a Board of Directors composed of a minimum of three and a maximum of nine directors, as set forth by the Annual Shareholders’
Meeting at each time, for a term of three years, with the option for reelection. The Shareholders’ Meeting may also appoint an equal
or lower number of alternate directors. The Board of Directors shall meet at least once a month.
The composition of the Board of Directors shall be
previously submitted to evaluation by the Nomination and Remuneration Committee.
Below is a list of the members of the Board of Directors,
their current position in the Entity and their business experience.
Name |
Position |
Background and work history |
|
|
|
Lorenzo de Cristóbal de Nicolás |
Chairman |
Business experience: Head of the Options Desk at Bank
of America in Madrid, he held several executive positions at BBVA, such as: Head of Global Portfolio Management; Director of Market Risks;
Head of Guaranteed and Quantitative Funds and Director of Investment at BBVA Asset Management.
Not an independent director pursuant to the terms of General
Resolution No. 622/13 (as amended in 2013).
|
Jorge Delfín Luna |
1st Vice-chairman
|
Business experience: Regular Director at Rombo Compañía
Financiera S.A.; Regular Director at PSA Finance Argentina Compañía Financiera S.A.; Board of Directors' Vice-chairman at
Banco Francés Foundation; Commercial Banking Director at BBVA Argentina S.A.; Member of the Management Committee at BBVA Argentina
S.A.; Regional Manager at Citibank; Regional Manager at former Banco Crédito Argentino; General Manager at Easy Bank; General Manager
and Vice-chairman at BBVA Uruguay; Chief Corporate Banking and Foreign Trade Officer at BBVA Argentina S.A; Chief Commercial Officer at
BBVA Argentina S.A.
Not an independent director pursuant to the terms of General
Resolution No. 622/13 (as amended in 2013).
|
Francisco Javier Pérez Cardete |
2nd Vice-Chairman
|
Business experience: South and East Territory Director,
Banco Bilbao Vizcaya Argentaria; Area Director, Banco Bilbao Vizcaya Argentaria; Risks Head in Valencia.
Independent director pursuant to the terms of General Resolution
No. 622/13 (as amended in 2013).
|
Gabriel Eugenio Milstein
|
Regular Director |
Business experience: Regular Director, PSA Finance Argentina
Compañía Financiera S.A.; Regular Director, Rombo Compañía Financiera S.A.; Alternate Director, Volkswagen
Financial Services Compañía Financiera S.A.; Member of Banco Francés Foundation; Director of Media and Director of
Human Resources and Services, Banco BBVA Argentina S.A.
Not an independent director pursuant to the terms of General
Resolution No. 622/13 (as amended in 2013).
He died on December 21, 2023. On January 12, 2024, Gabriel
Alberto Chaufán was appointed as his replacement.
|
Adriana
María Fernández de Melero
|
Regular Director |
Business experience: Structures and Productivity Manager
at Banco BBVA Argentina S.A; HR Development & Planning Manager at Banco Crédito Argentino; HR Administration Manager at BBVA
Argentina S.A; Organization and Productivity Manager at BBVA Argentina S.A; Business and Channel Development Manager at BBVA Argentina
S.A; Chief Corporate Development and Transformation Officer at BBVA Argentina S.A; Member of the Management Committee at BBVA Argentina
S.A; Advisor to the Chair and Board of Director at Banco Provincia de Buenos Aires.
Independent director pursuant to the terms of General Resolution
No. 622/13 (as amended in 2013).
|
Ernesto Mario San Gil |
Regular Director |
Business experience: Independent Director and Member of the
Audit Committee of Ternium Argentina S.A. (former Siderar S.A.); Ad honorem Member of the Strategic Board of the Ministry of Modernization
of Argentina; Director of IDEA; Different positions at EY Argentina (former Ernst & Young and former Arthur Andersen) among others,
Chief Strategy Officer (CSO), President and CEO, Member of the Executive Committee of the EY South America region, Partner in charge of
Transactions, partner specialized in Financial Institutions.
Independent director pursuant to the terms of General Resolution
No. 622/13 (as amended in 2013).
|
Gustavo Alberto Mazzolini Casas |
Regular Director |
Business experience: Director of Financial Institutions,
Ernst & Young; Financial Director, Corp Banca Argentina; Financial Planning Director, Credilogros Compañía Financiera;
Head of Countries II - Financial Directors Coordination Latam, Banca América; Head of Financial Directors Coordination Department
Latam, Banca América; Financial Director, Banco Provincial; Director of Strategy and Finance Lobs and AdS, BBVA Group; Financial
Staff Country Monitoring, BBVA Group; CFO AdS, BBVA Group.
Not an independent director pursuant to the terms of General
Resolution No. 622/13 (as amended in 2013).
|
Gabriel Alberto Chaufán
|
Alternate Director |
Business experience: Chairman at BBVA Seguros Argentina
S.A. and Regular Director at BBVA Uruguay S.A., Chairman of AVIRA; Member of the Management Committee at BBVA; Chairman and General Manager
at Consolidar ART, Consolidar Seguros, Consolidar Salud, Consolidar Retiro and Consolidar AFJP (the latter undergoing liquidation proceedings).
Manager of the Pension and Insurance Business; Head of the Pension Business and all insurance lines (Life, P&C, Life Annuities, Health),
and Underwriting Manager for the Group.
Not an independent director pursuant to the terms of General
Resolution No. 622/13 (as amended in 2013).
|
Gustavo Fabián Alonso |
Alternate Director |
Business experience: Commercial Director; Director of
Innovation and Development; Retail Product Manager; Manager of Payment Methods and Consumption; Manager of Strategic Alliances and Products;
Marketing Manager; Zonal Manager; and Branch Manager of Pilar, San Nicolás and Rosario, all at BBVA Banco Francés.
Not an independent director pursuant to the terms of General
Resolution No. 622/13 (as amended in 2013). |
Carlos Elizalde |
Alternate Director |
Business experience: Regional Director of Global Banking
Operations Latam at BBVA; General Manager at AL-Rajhi Bank; Free-lance Consultant at Riyadh KSA Buenos Aires; General Manager at Citigroup
Miami; Regional Head for Latin America at Citigroup Miami; and Head of Regional Sales at Citigroup Buenos Aires.
Not an independent director pursuant to the terms of General
Resolution No. 622/13 (as amended in 2013). |
Senior Management is made up of the General Manager
and by those executive officers who have decision-making powers and who report directly to the General Manager, or the Chairman of the
Board of Directors.
The officers in Senior Management positions must have
the skills and experience required by the financial industry to run the business with which they are entrusted and to oversee as appropriate
the personnel in the different areas.
| III. | Management Committee - Members |
The main members of Senior Management make up the Management
Committee. The Committee is chaired by the General Manager who shall be replaced, in case of absence or disability, by the Director of
the Financial and Planning Area.
Prospective management committee members shall first
be evaluated by the Nomination and Remuneration Committee for subsequent consideration by the Board.
Powers
The Management Committee shall have the following powers,
and, when appropriate, it shall be required to submit matters to consideration by the Board for final decision.
| - | Implement the strategies and policies approved
by the Board. |
| - | Evaluate and propose business and investment
strategies and general risk policies. For such purpose, it shall annually approve the Business Plan and the Financial Program. |
| - | Develop the processes necessary to identify,
assess, monitor and mitigate the risks to which the Bank is exposed. |
| - | Implement appropriate internal control systems
and monitor their effectiveness, periodically reporting to the Board on the attainment of objectives. Accordingly, the Internal Control
and Operational Risk Reports shall be approved. |
| - | Establish business synergies with the remaining
Group companies. |
| - | Analyze and propose the year’s comprehensive
budget, monitor changes and determine any corrective actions as called for by internal and market variables. |
| - | Propose the delegation of powers to the Bank’s
officers. Supervise the managers in the various areas to make sure that they comply with the policies and procedures set forth by the
Board. |
| - | Evaluate and propose Entity-wide policies,
strategies and guidelines and then oversee and follow up the model implementation. |
Decisions of the Management Committee shall be made
by a majority of the members present.
Below is a detail of the members of the Management
Committee, as well as their business background. The main executives are appointed for an indefinite term.
Name |
Position |
Background and work history |
Martín Ezequiel Zarich
|
General Manager
|
Business experience: Alternate Director, BBVA Argentina
S.A.; Regular Director, BBVA Seguros Argentina SA.; Regular Director, BBVA Francés Valores S.A., Member of the Board of Directors,
Banco Francés Foundation; Innovation and Development Director, BBVA Argentina S.A.; Director of Mergers, BBVA Argentina S.A.; Planning
Director, BBVA Argentina S.A.; Financial Director, BBVA Argentina S.A.; Retail Banking Director, BBVA Argentina S.A.; Director, Credilogros;
Director, BBVA Francés Uruguay; Associate Managing Director, Commercial Development, BBVA Group; Deputy Managing Director, Business
Development, BBVA Group; Economist, Banco de Crédito Argentino; Management and Budget Control Manager, Banco de Crédito
Argentino; Planning, Management Control and Economics Director, Banco de Crédito Argentino.
|
Carmen Morillo Arroyo
|
Director of Finance |
Business experience: Various positions in the holding
structure of the BBVA Group: Global Financial Planning & Performance discipline leader; Director of Planning and Management Control
of South American Businesses; Manager of Planning and Management Control of South American Banks; Financial Analyst; Manager of Corporate
Banking BBVA Spain.
|
Juan Christian Kindt |
Business Development Director |
Business experience: Business Execution Manager; Segment
and Business Manager; Manager of Business Channels, Telemarketing and Customer Service; Financing and Spending Manager within Commercial
Banking; Area Manager of Southern Metropolitan area; Territory Area Manager of Buenos Aires; Manager of Comodoro Rivadavia Branch, all
positions at BBVA.
|
|
|
|
Gustavo Osvaldo Fernández |
Talent & Culture Director |
Business experience: Director of Technology and Operations,
BBVA; Coordinator, Systems & Organizations, Banca Nazionale del Lavoro; Systems Coordinator, Banco Galicia; System Organization and
Development Manager, Banco de Crédito Argentino; Design and Development Manager, BBVA Argentina S.A.; Media Director, BBVA Argentina
S.A.; Director of Design and Development for the Americas, BBVA; Business Partner for the Americas, BBVA.
|
María Verónica Incera (*) |
Corporate & Investment Banking Director |
Business experience: Head of Global Clients at BBVA USA, with corporate governance responsibilities for BBVA's NY Branch; Industry Banker for Consumers. Prior to joining BBVA, she worked for Credit Agricole in Argentina and New York, where she held various positions. |
Leandro Álvarez |
Engineering and Data I Director
|
Business experience: Head of Solutions Development in the Business Development Department at Banco BBVA Argentina S.A.; Deputy Manager of Channels & Application Architecture at Banco BBVA Argentina S.A.; Regional Manager for Latin America of the technological replacement of the systems of the offices of the banks where BBVA has been present (BBVA Aplica SA); Deputy Manager of Channels and Markets at BBVA Francés. |
Gerardo Fiandrino |
Risks
Director
|
Business experience: Retail Banking Director for South
America, BBVA; Director of Wholesale Banking for South America, BBVA; Retail Risk Manager, BBVA Argentina S.A.; Wholesale and Enterprise
Risk Manager, BBVA Argentina S.A.; Admission and Follow-up Manager, BBVA Argentina S.A.; Monitoring and Operation Risk Manager, BBVA Argentina
S.A.; Director, Rombo Compañía Financiera S.A.; Director, PSA Finance Argentina Compañía Financiera S.A.;
Portfolio Monitoring Manager, Banco de Crédito Argentino. Investment Banking Senior Officer, Banco de Crédito Argentino.
|
Pablo Hernán Jordán |
Commercial Director
|
Business experience: Business Coordination Manager, North Territory Director, Capital Commercial Manager, Litoral Commercial Manager, Retail Banking Territory Assistant Manager, Central Office Manager, Downtown Branch Manager, Coronel Díaz Branch Manager, Territory Commercial Assistant, VIP Banking Officer and Business Executive, all positions at BBVA Argentina. |
Eduardo González Correas |
Legal Services Director
|
Business experience: Legal Manager of Banking Business and Corporate & Investment Banking, BBVA Argentina S.A.; Deputy Legal Manager of Corporate & Investment Banking, BBVA Argentina S.A.; Lawyer at the Legal Sub-Management of Corporate & Investment Banking, BBVA Argentina S.A.; Lawyer at Allende & Brea Law Firm; Lawyer at Pérez Alati, Grondona, Benites, Arntsen & Martinez de Hoz (Jr.) Law Firm. |
Mónica Gabriela Etcheverry |
Internal Control and Compliance Director |
Business experience: Deputy Director of Compliance at Banco BBVA Argentina S.A.; Accounting Manager at BBVA Banco Francés S.A. (BBVA Argentina); Financial Audit Manager (BBVA Argentina); Vice President of Internal Audit at the New York and Miami branches of Argentaria (Banco Exterior de España) USA; Member of the International Internal Audit team of Banco Exterior de España for the Americas. |
(*) Since January 1, 2023.
| IV. | Basic ownership structure of Banco BBVA
Argentina S.A. |
The following table sets forth certain information
regarding the beneficial ownership of the Entity's common shares as of December 31, 2023, by each entity that, to the best of our knowledge,
owns more than 5% of our common shares. These entities do not have different voting rights.
|
|
Common shares as of |
|
December 31, 2023 |
Shareholder |
|
Amount |
Class percentage |
Banco Bilbao Vizcaya Argentaria S.A. |
|
245,154,707 |
40.01 % |
BBV América S.L. (1) |
|
160,110,585 |
26.13 % |
The Bank of New York Mellon (2) |
|
98,448,839 |
16.07 % |
ANSES (Argentine Social Security Office) |
|
43,279,620 |
7.06 % |
| a) | BBV América S.L. is controlled by BBVA. Direct holder of 26.13 % of BBVA Argentina's share capital. |
| b) | As an agent holder of ADSs. |
| V. | Organizational structure |
[References: General Manager: Martin Zarich -
Chair Cabinet: Juan Gil Libarona – Internal Audit: Ana Karina Ortiz Cuellar - Commercial: Hernán Jordán - Business
Development: Juan Kindt - Corporate & Investment Banking: Verónica Incera - Finance: Carmen Morillo Arroyo - Engineering &
Data: Leandro Alvarez - Risks: Gerardo Fiandrino - Talent & Culture: Gustavo Fernandez - Institutional Relations: Hernán Carboni
– Internal Control and Compliance: Mónica Etcheverry - Research: Marcos Dal Bianco - Legal Services: Eduardo Gonzalez Correas.]
| VI. | Committees of the Board of Directors |
a) Joint Audit Committee (CNV / B.C.R.A.)
The Joint Audit Committee of BBVA Argentina shall
be responsible for assisting the Board of Directors in monitoring the internal control environment and validating the existence and improvement
of controls covering the Bank's main risks, financial statements, external auditors, directors' fees, transactions with related parties
and conflicts of interest.
It has internal regulations that regulate its
purpose, composition, operation and responsibilities. Said regulations have been approved by the Board of Directors at its meeting dated
June 29, 2021.
Composition:
The Audit Committee shall be composed of at least
three (3) Regular Members who are members of the Entity's Board of Directors, with the participation of the top responsible officer of
Internal Audit. The members shall operate as a collegiate body and shall be appointed by the Board of Directors by simple majority vote.
The Director of Legal Services shall act as Secretary of the Committee.
The appointed members shall remain in office
for a minimum term of two (2) years and a maximum of six (6) years (provided that their term as Director does not expire earlier), taking
into account that the term of office should not coincide, so that the Committee is always composed of an executive with experience in
the matter. The term of office may be renewed on an unlimited basis as long as the Director is independent in accordance with BCRA rules.
The composition of the Committee must comply with
the independence criteria established by the Argentine Securities Commission ("CNV"), the New York and Stock Exchange ("NYSE")
and the Argentine Central Bank ("BCRA").
The appointment of the members of the Committee,
as well as any modification in its composition, whether due to resignation, leave of absence, incorporation or substitution of its members,
or any other cause, once considered by the Board of Directors, must be communicated by the Entity to the BCRA, CNV and NYSE within the
terms established in the regulations in force.
The directors who are members of the Audit Committee
shall have knowledge of business, financial or accounting matters, and one of them must comply with the requirements of accounting expert
established in Communication "A" 6552 of the BCRA.
Duties:
It shall meet at least once a month and, additionally,
whenever its members deem it convenient.
The Committee may operate with the members present
or communicated among themselves by video teleconference or by any other means of simultaneous transmission of sound, images and speech.
For the purpose of determining the quorum, the directors present and those participating remotely through the technological means specified
above shall be counted.
In order to hold a valid meeting, the quorum required
shall be at least two members of the Audit Committee. In all cases, decisions shall be adopted by a simple majority of the members present,
and the dissenting opinion shall be recorded.
The head of Internal Audit participates in the
meetings and deliberations of the Committee with voice but without vote.
The main functions are:
1. Internal Control Environment and Financial
Statements:
| 1. | Monitor the proper functioning of internal
controls and the preparation and publication of the administrative-accounting system. |
| 2. | Ensure the consistency and integrity of all
documentation that is published in the market. |
| 3. | Review and approve the annual work program
and the reports issued by the Entity's internal audit area, as well as its degree of compliance, ensuring that it has adequate resources
to perform its duties and functions in the Entity. |
| 4. | Evaluate the observations on the internal control
weaknesses found by the auditors and by the controlling bodies. |
| 5. | Submit to the Board of Directors, at the time
of publication of the year-end financial statements, a report on the status of the internal control system. |
| 6. | Know and supervise the internal control environment
and the controls covering the main risks to which the Bank is exposed. |
| 7. | Hold meetings with the General Management area
in order to be informed about the Bank's exposure to the relevant risks. |
| 8. | Be informed of the results of the reports issued
by the Supervisory Committee of the Bank and the different control committees established by the Argentine Central Bank in compliance
with their duties. |
2. Internal Audit:
In relation to the Internal Audit function:
| 1. | Propose to the Board of Directors the selection,
appointment, re-election and dismissal of the top responsible officer of Internal Audit, based on the candidates pre-selected within the
executive area by the Talent & Culture area. |
| 2. | Supervise the independence, effectiveness and
operation of Internal Audit. |
| 3. | Analyze and establish the objectives of the
top responsible officer of Internal Audit and evaluate his/her performance, submitting the proposal thereof on both matters to the Nomination
and Remuneration Committee to ensure alignment with the compensation model applicable at all times to Senior Management, submitting the
corresponding proposals to the Board of Directors. |
| 4. | Ensure that the Internal Audit area has the
material and human resources necessary for the effective performance of its functions, both in terms of personnel and material elements,
systems, procedures and action manuals. |
| 5. | Analyze and, as the case may be, approve the
annual work plan of Internal Audit, as well as any other additional plans of an occasional or specific nature that may have to be implemented
due to regulatory changes or the needs of the Bank's business organization. |
| 6. | Receive monthly information from the top responsible
officer of Internal Audit on the activities carried out by the Internal Audit area, as well as on any incidents and obstacles that may
arise, and verify that Senior Management takes into account the conclusions and recommendations contained in its reports. Likewise, as
often as circumstances may require, to monitor these plans, being allowed to delegate to its Chairman the performance of preparatory tasks
to facilitate the work of the Committee. In the event of substantial deviations in the deadlines for the execution of the actions contemplated
in the plans, or in the scope of the reviews, the causes thereof shall be explained to the Committee, submitting for its approval the
modifications to be made to the Internal Audit plans. Notwithstanding the foregoing, the top responsible officer of Internal Audit shall
also report to the full Board of Directors, as often as appropriate, on the activities carried out by the Internal Audit area. |
| 7. | Be informed of the degree of compliance by
the audited units with the corrective measures recommended by Internal Audit in previous actions, and report to the Board of Directors
on those cases that may represent a relevant risk for the Bank. |
The Committee shall be informed of the irregularities,
anomalies or breaches that the Internal Audit area has detected in the course of its actions, provided that they are relevant, being understood
as relevant those that may cause a significant and material impact or damage to the Bank's equity, results or reputation, the assessment
of which shall be at the discretion of the Internal Audit area, which, in case of doubt, shall opt for communication. This communication
shall be made, as soon as known, to the Chairman of the Committee.
3. External Audit:
| 1. | Give its opinion regarding the proposal of
the Board of Directors for the appointment or revocation of the external auditors to be hired by the Bank and ensure their independence.
|
| 2. | Review the plans of the external auditors and
evaluate their performance, and issue an opinion thereon in its Annual Management Report. |
| 3. | Analyze the reasonableness of the fees billed
by the external auditors. |
| 4. | Request the external auditor to inform the
Committee of any relevant fact that has a significant impact on the Entity’s equity, results, or reputation, or constitutes a relevant
weakness in its internal controls. |
| 5. | Provide the mechanisms so that the reports
to be submitted by the external and internal auditors of the financial entities are submitted in due time and form. |
| 6. | When shareholders representing at least 5%
of the capital stock request the Bank to appoint an external auditor proposed by them for the performance of one or more specific tasks,
the Audit Committee shall issue a prior opinion and shall inform the CNV. |
4. Issuance and Stock Plans and Acquisition
of Own Shares and Directors' Fees:
| 1. | Issue an opinion and make it public, on compliance
with legal requirements and on the reasonableness of the conditions for the issuance of shares or securities convertible into shares,
in cases of capital increase with exclusion or limitation of preemptive rights. |
| 2. | Issue a report prior to any decision of the
Board of Directors to acquire the Bank's own shares. |
| 3. | Give an opinion on the reasonableness of the
proposals made by the Board of Directors regarding fees and stock option plans of the Bank's directors and administrators. |
5. Related Party Transactions and Conflicts
of Interest:
| 1. | Ensure that transactions between related parties
are carried out in accordance with the provisions of Law No. 26831, issuing a well-founded opinion regarding transactions with related
parties in the cases established and specifically required. |
| 2. | It shall immediately provide the market with
full information on transactions in which there is or could be a conflict of interest with members of the corporate bodies or controlling
shareholders. |
6. Standards of Conduct:
| 1. | Investigate irregular behavior or behavior
that may not be in accordance with applicable regulations or BBVA Argentina's Codes of Conduct. |
| 2. | Review the Bank's standards of conduct, to
ensure that they are adequately disseminated among all the Bank's personnel and verify compliance with such standards of conduct. |
7. Action Plan and Relationship with Regulators:
| 1. | Submit annually, an action plan for the fiscal
year, which shall be submitted to the Board of Directors and the Supervisory Committee within sixty (60) calendar days after the beginning
of the fiscal year, in which it shall account for the treatment given during the fiscal year to the matters within its competence provided
for in Article 18 of Chapter III of the CNV Rules. |
| 2. | Maintain constant communication with the officers
of the Superintendency of Financial and Exchange Entities responsible for the control of the Entity in order to know their concerns, the
problems detected in the inspections carried out and the actions for their solution. |
b) Nomination and Remuneration Committee
BBVA Argentina's Nomination and Remuneration Committee
is a non-executive body whose purpose consists in assisting the Board on matters concerning the Bank’s remuneration and benefit
policies. Furthermore, the Nomination and Remuneration Committee is the body entrusted with the establishment of the standards and procedures
governing the recruitment and training of directors, key executives and senior personnel.
Composition:
BBVA Argentina's Nomination and Remuneration Committee
shall be made up of three Non-Executive Directors to be designated by the Board in the same manner as the President. The Chief Legal Officer
and Chief Talent & Culture Officer may be invited to attend the meetings of this committee. The Committee shall be presided over by
an Independent Director. The Chief Legal Officer is the secretary of the Committee.
Each member of the Nomination and Remuneration
Committee shall prove sufficient knowledge on and experience in Human Resources (HR), compensation policies and labor risk management.
Duties:
The Nomination and Remuneration Committee shall
perform the following functions:
1.
Permanent functions:
Board of Directors' Performance, Succession
Plan, and Assessment
| · | Evaluate the Board of Directors performance and renewal and replacement
of members of the Senior Management. |
| · | Ensure application of a proper methodology
for the evaluation of Senior Management. |
Recruitment Criteria and Training
| · | Identify potential candidates to fill positions
at the Board of Directors to be proposed at the Annual Shareholders’ Meeting. |
| · | Approve recruitment criteria for senior management
members. |
| · | Ensure the Training and Development of the
members of the Board of Directors and senior management and other executives. |
| · | Suggest which members of the Board of Directors
should comprise the several Board’ committees, based on their respective background. |
| · | Assess the convenience of the members of the
Board of Directors and/or supervisory auditors performing functions at several Entities. |
Remuneration, Retention, and Dismissal Policy
| · | Keep the Board of Directors informed on the
Entity's Remuneration policy, with a detail of union agreements or other general adjustments which may have an impact on the Bank’s
salary structure. |
| · | Validate –on an annual basis- the characteristics
of variable compensation models in force at the Bank. |
| · | Ensure a clear link between the performance
of the Senior Management and their fixed or variable compensation, taking into account the risks undertaken and how they are managed. |
| · | Oversee that the variable portion of Senior
Management’s compensation is tied to the medium and/or long-term performance of their members. |
| · | Review the competitive position of the Bank’s
compensation and benefit policies and practices, and approve the respective changes. To such end, these policies shall embrace the Entity’s
goals, culture and activities, and shall be mainly intended to reduce incentives to undertake excessive risks in the face of the structure
of the employee’s incentive system. |
| · | Define and communicate key staff retention,
promotion, dismissal and suspension policies. |
| · | Ensure that the Talent & Culture / HR policy
does not embrace any form of discrimination. |
| · | Inform the guidelines to determine retirement
plans for Board of Directors' and Senior Management's members. |
Reporting to the Board of Directors and Shareholders'
Meetings
| · | Regularly report to the Board of Directors
and Shareholders' Meeting on any actions undertaken and the issues discussed in the meetings. |
| · | Annually inform the Board of Directors the
assessment guidelines that were followed to determine the compensation level of directors, senior positions and Senior Managers. |
| · | Ensure that the resumes of the Board of Directors’
and Senior Management’s members are available at the Entity’s website (indicating Directors’ term in office). |
| · | Intervene in cases of infringement to the General
Anticorruption Policy involving members of the Board of Directors, except to the extent such cases involve members of this committee.
This committee will coordinate the execution of the action plans required to deal with and address these situations. The actions taken
in this regard are reported to the Board of Directors. |
| · | Intervene in cases of infringement to the General
Conflicts of Interest Policy involving members of the Board of Directors, except to the extent such cases involve members of this committee.
This committee will coordinate the execution of the
action plans required to deal with and address these situations. The actions taken in this regard are reported to the Board of Directors. |
Organization Chart
| · | Learn about changes in the Entity's Organization
Chart made from time to time by the Talent & Culture area. |
| · | The Board of Directors shall appoint the General
Manager, following consultation with this Committee. |
| · | Notify the Board of Directors of the appointment
of: (i) each area's Directors; (ii) Managers of central areas, and (iii) Territory Managers of the Commercial Department. |
2.
Non-permanent functions.
In addition to the permanent functions it is expected
to discharge, the Nomination and Remuneration Committee may take care - within its areas of responsibility - of all such matters strengthening
people management quality and reliability at BBVA Argentina.
Organization and Operation Rules:
The Nomination and Remuneration Committee shall
meet every four months, and such meetings shall be either convened by the President or other member.
A quorum is attained with the presence of, at
least, two of the committee's members, and resolutions will be adopted by majority of present members.
The Committee may convene individuals within the
Bank that perform tasks related to the Committee’s functions, and may seek such external advice, through the Board of Directors,
as deemed necessary to form an opinion on the matters within its competence.
The President of the Committee, or any of its
members, shall be available at the Annual Shareholders’ Meeting approving the Board of Directors’ compensation to explain
the Bank's remuneration policy for Board of Directors' and Senior Management's members.
c) Other Committees
The composition and functions of the Committees
that are listed below are governed by the Bank’s internal manuals and the applicable rules and regulations laid down by oversight
agencies (BCRA, Financial Information Unit, CNV, among others).
1) Committee for the Prevention of Money Laundering
and Terrorist Financing
This Committee is made up of: (i) BBVA Argentina’s
Regular Director in his capacity as Regulatory Compliance Officer; (ii) Highest-Ranking Regulatory Compliance Officer; (iii) one Regular
Director, (iv) the Officer responsible for Compliance Processes and (v) the Officer responsible for the Prevention of Money Laundering
and Terrorist Financing Discipline.
Specifically, this Committee shall be in charge
of:
| · | Setting action plans and continuously reviewing
their progress; |
| · | Filing reports with the competent authorities
concerning the so-called “unusual or suspicious” transactions, or, either, disregarding them, when appropriate; |
| · | Evaluating the potential risk of asset laundering
in the new products and/or services; |
| · | Reaching an agreement on actions for the analysis
of suspicious transactions; |
| · | Raising awareness in their areas about the
importance of preventing asset laundering and terrorist financing; |
| · | Identifying any relevant situation that may
occur in this regard in their respective areas; |
| · | Undertaking the necessary commitments within
its area to put in place prevention procedures, on a coordinated basis with the Officer Responsible for Prevention of Anti-Money Laundering. |
2) Information Technology Committee
This Committee is made up of a member of the Board,
the Chief Engineering & Data Officer, the Systems Manager, the Architecture, Infrastructure & IT Ops Manager, the Corporate Security
Manager, the Business Process Engineering Manager, the Data Transformation and Engineering Manager, the Strategy and Control Manager,
the Operations (Permanent Participants) Manager and the Level 3 (NIII) of Technology, Physical, Information and Data Security Risk Control
Specialist (Secretary).
Specifically, this Committee shall be in charge
of:
| · | To monitor and evaluate the operation of the
information technology management framework and contribute to the improvement of its effectiveness. |
| · | To monitor and evaluate the operation of the
information security management framework and its effectiveness. |
| · | Oversee the definitions, prioritization and
adherence to information technology and security plans. |
| · | Oversee the effectiveness of the business continuity
management framework and mechanisms to ensure technology resilience. |
| · | Supervise the execution of corrective actions
to regularize or minimize the observations arising from the audit reports on technology and information security aspects. |
| · | Monitor the results of the risk management
framework related to technology and information security and verify that the mitigation plans are executed according to the defined schedules. |
| · | Oversee comprehensive cyber incident management
and associated reporting. |
| · | Keep the Board of Directors informed of the
issues discussed and the decisions taken. |
| · | This committee assumes the functions established
in section 2.5 of the minimum operating requirements of the information systems - Information Technology area. |
3) Disclosure Committee
The mission of this non-executive Committee will
be enhancing the coordination between the several areas engaged in the development and disclosure of BBVA Argentina's public information,
thus enhancing its consistency, while fostering the definition of preparation procedures as an additional control element. This Committee
is composed of a Regular Director, the Chief Financial Officer, the Chief Risk Officer, the Chief Legal Officer, the Head of the Board
of Directors’ Secretary’s Office, the Accounting Manager, the Investor Relations Manager, and the Associate of Investors and
Rating Agencies.
The main functions of this committee are:
| · | Developing coordination, review and criteria-setting
activities in connection with all information to be disclosed by the Entity to its shareholders, the markets where the Bank’s shares
are listed and such markets’ regulatory authorities, ensuring that: (i) the information required to be publicly disclosed (either
directly or through the pertinent regulatory authorities) is registered, processed, summarized and reported in an accurate and timely
fashion, and (ii) that such information is gathered and shared with managers and directors in due time and fashion to ensure timely decision-making
based on the required information. |
| · | Coordinating with the several units responsible
for the preparation and disclosure of information to ensure consistency and that the information has been generated by the pertinent internal
area following the established procedures. |
| · | Reviewing and sharing the work done, together
with the incumbent areas, to ensure disclosure by the Bank of all such information required by the several regulatory authorities and/or
applicable laws. This Committee's functions do not replace the existing controls at the units responsible for preparing and publishing
the information, but are rather a supplementary and additional review element. |
| · | Establishing the criteria to be applied in
respect of the content and disclosure of documents. In order to ensure that the committee discharges its duties efficiently, it fosters
the development of policies and procedures to ensure an appropriate public information preparation and disclosure process. |
A quorum shall be attained with the absolute
majority of the Committee’s members, and decisions shall be made by a majority of the present members. Such individuals having
expertise on the issues to be discussed at the meetings may attend them as guests, and may sign the minutes; provided, however, that
the presence of such individuals shall not be taken into account for attaining quorum and required majorities.
4) Risk Management Committee
This committee is the Entity’s uttermost
risk management body. It comprises the Chief Risk Officer (Chairman), Risk Internal Control Manager, Risk Internal Control (Technical
Division), Retail Risk and Process Transformation Manager, Wholesale Risk Manager, the Financial Risk and Reporting Manager (permanent
participants); the CEO or General Manager, Commercial Director and/or Retail Coordination Manager and/or Business Coordination Manager,
the Corporate & Investment Banking Director and/or the Global Transactional Banking Manager and/or Manager of Global Markets Argentina
and the Business Development Director and/or Business Execution Manager (optional participants or to address specific issues); head of
the area of the issue to be addressed, and Presenter (specific participants).
The main functions of this committee are:
| · | Approve all transactions and Financial Programs
for Customers or Economic Groups exceeding the powers vested in Risks Managements (Wholesale / Retail), Financial institutions and Issuer
Risk, and any issues requiring approval from other areas (C&IB, GRMC, CTOG). |
| · | Approve individual and corporate customers’
refinance transactions, cancellations and charge-offs, as per the effective Delegation Rule. |
| · | Approve the operations of Non-Delegated Risks
(risks related to media, public relevance, political parties, trade unions or companies related to the Bank or its officers). |
| · | Discuss the power delegation proposal which
will then be submitted to the Board of Directors for approval. |
| · | Annually approve the Risk Management Specific
Framework and periodically follow up on the changes in the metrics set in such framework. |
| · | Define and approve the strategies, manuals,
policies, necessary practices and procedures to identify, evaluate, measure and manage the risks to which the entity is exposed (credit,
market, structural, liquidity, operational risk, etc.). |
| · | Approve Credit Policies, rating tools and models,
and campaigns of pre-approved loans or massive campaigns. |
| · | Approve the limits of Asset Allocation, Preferred
Lenders Program (PLPs) and stress tests. |
| · | Call the Crisis Committee, if deemed necessary
or at the request of the wholesale or retail follow-up Committee, and approve actions defined at such committee to mitigate risk alerts
previously exposed by the related Follow-up Committees. |
| · | Report to the Board of Directors decisions
taken on the approval of transactions and definition of risks policies and strategies. |
| · | Submit and analyze periodic management reports,
which are then submitted to the Senior Management and the Board of Directors. These reports shall gather the main aspects of the management
of all the risks of the Entity. |
| · | Approve, on a quarterly basis, the definition
of priorities for Single Development Agenda (SDA) projects (Intra-domain refinement). |
| · | Monthly review actions as per the methodology
set out in IFRS 9. |
The Committee shall be presided of the Chairman
(Chief Risk Officer) and shall have a Secretary (Head of Internal Control of Risks - Technical Division), who shall be in charge of,
amongst other things, setting the agenda, preparing the Minutes for each subject submitted with the related decision taken. In case of
absence of the Chairman, the Chief Executive Officer or General Manager shall act as such. In absence of the latter, the role shall be
jointly taken over by two regular participants (including optional participants or participants for specific issues) in the following
order: Wholesale Risk Manager, Retail Risk Manager, and Financial Risks and Reporting Manager.
The Committee shall meet twice a week. If an urgent
meeting is necessary, it shall be called as an extraordinary meeting.
5) Corporate Assurance Committee
This Committee is comprised of the Chief Executive
Officer as Chairman, members of the Management Committee as Regular Members, and the Committee’s Secretary is undertaken by the
Non-financial Risk Manager.
The main functions of this committee are:
| · | Communicating and watching over the effective
operation of the control model, as well as the required culture of transparency and self-criticism. |
| · | Ensuring the implementation and preservation
of the Corporate Assurance model across the entities comprising the BBVA Group. |
| · | Setting priorities as to control weaknesses
identified by the specialized areas and Internal Audit and as to the suitability, relevance and timing of the proposed corrective measures. |
| · | Ensuring that specialists fulfill their responsibilities
with transparency and self-criticism. |
| · | Being familiar with, assessing and assigning
responsibilities for managing the risks submitted to its consideration. |
| · | Timely follow-up to the agreed-upon risk mitigation
action plans. |
| · | Communicating the actions taken to specialists
and Business Units. |
| · | Fostering knowledge on the Operational Risk
Model, as well as the dissemination of related corporate policies. |
| · | Addressing and making decisions regarding Operational
Risks, as required, due to the materiality or importance of the issues involved. |
| · | Ensuring the application of the Operational
Risk Model and facilitating the adequate management of the operational risks associated to BBVA Argentina's activities. |
| · | Overseeing the adequate deployment of the model
tools and methodology. |
| · | The Committee may take care of all such issues
that enhance the quality and reliability of BBVA Argentina's and its affiliates’ internal controls. |
The Committee shall hold ordinary and extraordinary
meetings. Ordinary meetings shall be held every four months, following the required call by the Secretary. Extraordinary meetings shall
be held when convened by the Secretary or at the request of one or more members of the Committee, when special circumstances so warrant.
6) Compliance Committee
This committee is composed of: (i) the top responsible
officer of Compliance; (ii) the General Manager; (iii) the Chief Commercial Officer, (iv) the Chief Legal Officer, (v) the Chief Financial
Officer, (vi) the Chief Risk Officer, and (vii) the Internal Audit Officer, who will attend meetings as observer with voice but no votes.
The main functions of this committee are:
| · | Setting action plans and continuously reviewing
their progress; |
| · | Contributing to preserve the Corporate Integrity
of BBVA Argentina and Group companies in Argentina, ensuring the effective application of the Code of Conduct and the Rules of Conduct
in the Capital Markets. |
| · | Encouraging and promoting a culture of ethics
and integrity among members, encouraging the adoption of the necessary measures to resolve queries, concerns, suggestions regarding compliance
with and application of the Code, as well as ethically questionable actions that may be brought to its attention. |
| · | Promoting and following up on the operation
and effectiveness of the Whistleblower Channel. Reviewing the most representative cases. |
| · | Ensuring compliance with the provisions on
the Protection of Financial Services Users, considering the claims submitted by users and adopting actions to reduce their repetition. |
| · | Assuming the necessary commitments and agreeing
on actions to carry out the prevention systems, in coordination with the Head of Prevention of Money Laundering and Financing of Terrorism |
| · | Fostering action plans to train and raise awareness
about the importance of being acquainted with matters concerning the scope of the Committee. |
This Committee will meet on a monthly basis.
7) Assets and Liabilities Committee (ALCO)
This committee is composed of: (i) the Chief Executive
Officer; (ii) the Chief Business Development Officer; (iii) the Chief Financial Officer; (iv) the Chief Risk Officer; (v) the Chief Commercial
Officer; (vi) the Chief Corporate & Investment Banking Officer; (vii) the Financial Management Manager (Permanent Participants), (viii)
the BBVA Research Director, and (ix) the Financial Risk and Reporting Manager (Guests).
The main functions of this committee are:
| · | Follow-up to macroeconomic variables; |
| · | Analyzing and discussing the conditions of
local and international financial markets, and their forecast and impact on the Bank’s structural risks; |
| · | Follow-up to and control over liquidity limits
and alerts, rate, exchange position and market risk, both at an internal and regulatory levels; |
| · | Defining corrective measures, as necessary; |
| · | Reviewing historical changes in and projection
of the financial position statement items, deviations from the budget, and comparison against the market and the competition; |
| · | Follow-up on the Bank’s excess liquidity,
benchmarking and review of stress scenarios; |
| · | Establishing the funding strategy and the allocation
of resources; |
| · | Defining the pricing policy and lending and
borrowing products; |
| · | Follow-up on the changes to the Bank’s
financial margin and its main deviations. Changes to business spreads. Analysis of the impact of management proposals; |
| · | Designing the investment and surplus strategy; |
| · | Defining the strategy of investment in Public
Venture Capital; |
| · | Historical and projected changes to the Bank’s
capital position and projected dividends and analysis of proposals leading to the efficient use of such capital; |
| · | Causing financial and other analysis to be
done, as necessary, to optimize the performance of the above items; |
| · | The Finance area is responsible for analyzing
and following up the proposals submitted to the committee through the applicable commissions; |
| · | Enforcement and implementation of contingency
and liquidity plans; |
| · | Acting as Crisis committee in the event the
Recovery Plan and/or the Resolution Plan needs to be triggered. |
This Committee will meet on a monthly basis.
| VII. | Banco BBVA Argentina S.A.'s subsidiaries
and associates |
The main subsidiaries and associates of BBVA Argentina
are:
Subsidiaries:
| a) | BBVA Asset Management Argentina S.A.U. Sociedad
Gerente de Fondos Comunes de Inversión: the corporate purpose of this mutual fund manager is to run and manage Mutual Funds in
accordance with Section 3 of Law No. 24083, as subsequently amended by Law No. 26831. |
| b) | PSA Finance Argentina Compañía
Financiera S.A. whose corporate purpose consists in financing the acquisition of new and second-hand Peugeot and Citroën vehicles
through pledge loans, receivables from finance leases and other financial products and in supplying services associated with the purchase,
maintenance and insurance of motor vehicles. |
| c) | Consolidar AFJP S.A. (undergoing liquidation
proceedings): see Note 1. |
| d) | Volkswagen Financial Services Compañía
Financiera S.A., a company engaged in providing pledge loans for the purchase of VW, Audi and Ducati new or second hand vehicles, credit
through operating leases, and other financial products and services associated with the purchase, maintenance and insurance of vehicles.
|
Associates:
| e) | Rombo Compañía Financiera S.A.,
whose corporate purpose is to finance the acquisition of new and second-hand Renault and Nissan vehicles through pledge loans, receivables
from financial leases and other financial products and in supplying services associated with the purchase, maintenance and insurance of
motor vehicles. |
| f) | BBVA Seguros Argentina S.A. This insurance
carrier operates in the following lines of business: fire, comprehensive household insurance, civil liability, theft, personal accidents,
group life insurance and other coverage. |
| VIII. | Network of branches and retail offices |
Banco BBVA Argentina S.A. operates a network of
243 branches distributed as follows: City of Buenos Aires: 79 branches; Greater Buenos Aires: 82 branches and rest of the country: 82
branches.
IX.
Business lines
The most relevant business lines are: Retail Banking,
whose strategy relies on building a comprehensive relationship with customers and strengthening the credit card segment; Small and medium
companies, which aims at aiding companies through both short- and long-term financing and Corporate Banking, an area concerned with Foreign
Trade transactions as much as with advice in mergers and acquisitions and in capital market transactions.
X.
Economic incentives for the personnel
Banco BBVA Argentina S.A. applies a policy of
rewards to attract and retain the proper individuals for each position, based on the following principles:
- | | Acknowledgement and compensation
based on individual performance, work team, results obtained and their quality, as well as the skills and competences applied by individuals
to their work. |
- | | Ensuring internal fairness through structure analysis, descriptions of positions and remunerations. |
- | | Ensuring external competitiveness by updating the information with the benchmark market. |
- | | Rewarding the contribution of tangible results. |
The rewards system includes compensations paid
to employees as consideration for their contribution to the organization in terms of time, role and results, and it involves a fixed as
well as a variable remuneration system.
In order to comply with such principles, the Entity
has implemented the following tools within the remuneration processes:
- | | Salary surveys into the benchmark market: the position adopted within the survey is defined
in accordance with the Bank’s needs and strategy for each period. This benchmark market is made up of a number of companies that
have similar organizational structures and business sizes. |
- | | Salary categories/brackets: these are designed on the basis of the internal structure of
the positions and the information derived from market salary surveys. These brackets represent salary ranges grouping positions that
rank similarly in terms of responsibility, experience, knowledge, etc. |
Also, BBVA Argentina uses performance evaluations
as a key tool to compensate the effort and results of each employee. At the end of each fiscal year, each person in charge evaluates the
goals of their team members to obtain an individual assessment of their performance for the year. Such assessment has four types of goals:
Quantitative, Customer, Tactical and Other Goals.
The result of the assessment reflects the level
of contribution by each member of the team, which is the basis to assess the right to collect the rewards defined.
Classification is the process whereby the manager
carries out a global assessment of each team member to evaluate the performance of their current position. The results of such assessment
are used to apply certain Human Resources policies.
In turn, projection is the process whereby a manager
assesses the capabilities of each team member to perform higher level functions inside BBVA Argentina. This assessment shall be based
on experience, knowledge, skills, and the commitment of the team member.
Each employee has access to various rewards based
on their work position and the results of their performance evaluation. The goal is to encourage and reward the achievement of results.
The models currently in force are:
| - | Network rewards model: It consists of four quarterly payments and one payment
of annual indicators. Payment is related to the attainment of the goals assigned to each individual, for each period. Each position has
a set of goals, and each goal has a certain weight. |
| - | Reward model for Central Areas, Channels
and Network support: It consists of a yearly variable payment assigned to each employee by the supervisor, taking into consideration
their performance evaluation and the position's reference reward. Additionally, variables related to the attainment of the Entity's goals are considered, based on the criteria adopted
and the degree of compliance with the budget. These factors may have an impact on the defined variable reward. |
| - | Commissions reward model: The value of the
commission depends on the unit value of each product based on its contribution to the Entity's profit and loss account. The criteria to
be applied for rewards through commissions are reviewed annually. They are paid monthly in arrears. |
| - | Share-based incentives reward model: An incentive
program for executives whose professional activities have a material impact on the Entity’s risk profile, based on the delivery
of shares of the controlling company. The number of units to be assigned is determined taking as a reference the level of responsibility
of each beneficiary within the Bank. The number of shares to be actually delivered shall depend on the employee's individual performance
ratio. |
Executives included in that group receive at least
50% of the annual variable reward for each year in shares of the controlling entity. The payment, both in cash and shares, shall be distributed
as follows: 60% of their rewards during the first quarter of the year and the remaining 40%, 3 years after the first payment date of the
variable reward.
Shares delivered to this group of employees, which
are part of their annual variable reward for the year, cannot be disposed of during the 6 months immediately following delivery. The unavailability
regime applies to the net amount of the shares, that is to say, discounting the portion necessary for the employee to pay taxes on the
shares received. This shares unavailability regime also applies in the event of termination of the employment contract or the contract
of a director with BBVA Argentina for any cause, except in the case of death and all degrees of disability for labor purposes. After the
unavailability period, BBVA Argentina's employees that are part of the “Colectivo Sujeto” group may freely transfer their
shares.
In addition to achieving the goals set forth for
such incentive, the beneficiary shall remain active in the Entity as of the settlement date, he/she should be entitled to receive regular
variable rewards for that fiscal year, and should have not been subject to penalties for serious noncompliance with the code of conduct
and other internal regulations.
XI.
Code of conduct
The Entity has a Code of Conduct binding on all
employees and officers of BBVA Argentina.
The Code of Conduct defines the ethical behavior
that the Board of BBVA Argentina considers applicable to the businesses and activities conducted by BBVA Argentina and the group companies
in Argentina; builds the foundations thereof and lays down the guidelines required for corporate integrity to be outwardly expressed in:
(i) relationships with customers, employees, officers, suppliers, and third parties; (ii) acting in the various markets as issuers or
operators; (iii) individual actions by employees and officers; and (iv) establishing specific bodies and functions endowed with the responsibility
of enforcing the Code and fostering the actions necessary to effectively safeguard corporate integrity as a whole.
XII.Conflict of interest
On November 24, 2020, the Board of Directors approved
the General Conflicts of Interest Policy at BBVA Argentina and other affiliates in Argentina.
The Policy contains the following principal guidelines:
(i) it determines the scope of application; (ii) it sets forth the general principles, (iii) it identifies conflicts of interest; and
establishes the measures for preventing and handling conflicts of interest; (iv) it regulates the conflicts of interest of members of
the management board; and (v) it provides the model of government and supervision of this Policy.
In addition, Section 12 “Standards for discharging
directorship duties” of the Code of Corporate Governance regulates, among other matters, transactions between Directors and the
Bank or other Group companies.
Basically, it mandates that any Director involved
shall not be in attendance when the relevant corporate bodies, in which he/she sits, are in session to discuss the matters in which he/she
might have a direct or indirect interest or which might affect persons related to him/her in the terms defined by the laws.
It also prescribes that the Director involved
shall refrain from entering, either directly or indirectly, into personal, professional, or commercial transactions with the Bank or companies
of its group, other than ordinary banking transactions, unless these transactions are subject to a procurement process that ensures transparency,
with competing bids, and on an arm’s length basis.
XIII.
Diversity and inclusion
On September 4, 2020, the Argentine Central Bank
(“BCRA”) issued Communication “A” 7100, incorporating gender equality criteria to its "Corporate Governance
Guidelines for Financial Institutions" as best corporate practice for the composition of financial institutions' governance bodies.
Within the “General Considerations”
section of the "Corporate Governance Guidelines for Financial Institutions,” the Argentine Central Bank incorporated the following
concepts: (i) gender equality, as a “guideline that seeks to achieve equal participation of men and women in decision-making
roles at the workplace and to ensure the right to equal opportunities and non-discrimination based on gender;” and (ii) managing
with gender equality, such as “developing gender-equality conditions though policies and affirmative actions.”
As stated in Communication, a good corporate governance
practice is ensuring that entities' boards of directors are made up considering gender equality, to foster discussion and enrich the decision-making
on strategies, policies and risks assumed.
Furthermore, the communication recommends that
financial institutions: (i) select and, where necessary, replace their main executives and have an appropriate succession plan
in place so that candidates meet the eligibility requirements to run the Entity, taking into account gender equality; and (ii)
approve, watch and review the design and operation of their personnel's compensation plan and, if applicable, their personnel's incentive
plans, according to applicable laws and considering gender equality, ensuring that they are implemented accordingly.
Besides, the boards of directors of financial
institutions will be tasked with new functions, such as: (i) approving recruitment policies that foster inclusive and diverse workplaces
in terms of gender, geographical origin, age, ethnics, professional experience, family composition, and caring responsibilities, in designating
both senior management members and the rest of the entity's personnel; (ii) approving gender and gender violence education and
training policies; and (iii) fostering mechanisms to manage with gender equality, creating, where necessary, a dedicated area,
based on equal opportunities and non-discrimination on the basis of gender, applicable to the several stages of the entity's development.
In this respect, on November 24, 2020, the Board
of Directors approved the General Diversity and Inclusion Policy. The policy seeks to establish guidelines that instill a culture of respect
for diversity and inclusion, ensuring equal opportunities and contributing to foster a more open culture, based on respect and richness
from diverse talents. All who are part of BBVA Argentina are personally responsible for following the procedures established in this policy
to ensure diversity, inclusion and non-discrimination in their actions, and for reporting any discriminatory practice. Some of the principles
enshrined by this policy include:
| 1. | Recognizing and appraising diversity at BBVA
Argentina as part of its purpose of “bringing the opportunities of this new era to everyone.” |
| 2. | Affording a decent, respectful and equal treatment
to all our employees, whether direct and indirect, without regard to their age, ethnics, sex, religion, disability, gender, financial
condition, political affiliation, etc., recognizing freedom of speech and equal rights and embracing inclusion. |
| 3. | Favoring inclusion through the full recognition
and exercise of people's rights and equality. |
| 4. | Considering diversity in all our actions, crosscutting
all our decisions as members of BBVA Argentina, for employees as well as for customers and suppliers. |
| 5. | Appreciating contributions from diverse perspectives,
facilitating and encouraging people's development and professional growth. |
| 6. | Facilitating team's balance in terms of work,
family and leisure time, fostering actions framed under the Work Better & Enjoy Life umbrella. |
| 7. | Using appropriate language and behaviors at
all times without jokes or comments that may be detrimental to people based on their age, ethnics, sex, religion, disability, gender,
financial condition, political affiliation, etc. |
The Group organizes online training courses
and talks on diversity and inclusion addressed to all employees to raise awareness on gender equality and non-discrimination.
53. Subsequent events
No events or transactions have occurred between
year-end and the date of these consolidated financial statements which may significantly affect the Entity's financial position or results
of operations as of December 31, 2023.
54. Accounting
principles – Explanation added for translations into English
These consolidated financial statements are presented
in accordance with the financial reporting framework set forth by the BCRA, as mentioned in note 2. These accounting standards may not
conform to accounting principles generally accepted in other countries.
EXHIBIT A
BREAKDOWN OF GOVERNMENT AND PRIVATE SECURITIES
CONSOLIDATED WITH SUBSIDIARIES
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.) (Translation of Financial statements originally issued in Spanish - See Note 54)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HOLDING |
|
POSITION |
|
|
|
|
|
Fair value level |
Accounting balance |
|
Accounting balance |
|
|
|
|
Account |
|
Identification |
|
Fair value |
|
|
Position with no options |
Options |
Final position |
|
|
|
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
|
|
|
Government Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Treasury Bills adjusted by CER. Maturity 01-18-2024 |
|
9221 |
|
205,177 |
1 |
205,177 |
|
- |
|
205,177 |
- |
205,177 |
Argentine Treasury Bonds in pesos adjusted by Cer 4%. Maturity 10-14-2024 |
|
9179 |
|
179,040 |
1 |
179,040 |
|
- |
|
179,040 |
- |
179,040 |
Argentine Treasury Bonds in pesos at 16%. Maturity 10-17-2023 |
|
5319 |
|
- |
2 |
- |
|
21,758,711 |
|
- |
- |
- |
Treasury Bills adjusted by CER. Maturity 02-17-2023 |
|
9111 |
|
- |
1 |
- |
|
1,237,150 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Government Securities - In pesos |
|
|
|
384,217 |
|
384,217 |
|
22,995,861 |
|
384,217 |
- |
384,217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Government Securities - In foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Argentine Bond in dual currency. Maturity 06-30-2024 |
|
9230 |
|
216,222,852 |
1 |
216,222,852 |
|
- |
|
216,222,852 |
(426,095) |
215,796,757 |
Argentine Bond in dual currency. Maturity 02-28-2024 |
|
9156 |
|
7,269,735 |
1 |
7,269,735 |
|
- |
|
7,269,735 |
- |
7,269,735 |
GD30 Bond Foreign Law USC Step Up. Maturity 07-09-2030 |
|
81086 |
|
28,433 |
1 |
28,433 |
|
- |
|
28,433 |
- |
28,433 |
AL30 Bond Local Law US$ Step Up. Maturity 07-09-2030 |
|
5921 |
|
27,336 |
1 |
27,336 |
|
- |
|
27,336 |
- |
27,336 |
Argentine Bond in dual currency. Maturity 07-31-2023 |
|
9146 |
|
- |
1 |
- |
|
10,961,484 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Government Securities - In foreign currency |
|
|
|
223,548,356 |
|
223,548,356 |
|
10,961,484 |
|
223,548,356 |
(426,095) |
223,122,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
BCRA Bills - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BCRA Liquidity Bills in pesos. Maturity 01-12-2023 |
|
13930 |
|
- |
2 |
- |
|
45,513,297 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal BCRA Bills - In pesos |
|
|
|
- |
|
- |
|
45,513,297 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Private Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bond New San S.A. Series 18 in Pesos Private BADLAR + 300 bps. Maturity 10-17-2024 |
|
57449 |
|
263,784 |
3 |
263,784 |
|
0 |
|
263,784 |
- |
263,784 |
Corporate bond New San S.A. Series 19 in Pesos Monetary policy rate Maturity. 10-17-2024 |
|
57450 |
|
234,746 |
3 |
234,746 |
|
0 |
|
234,746 |
- |
234,746 |
Corporate bond Toyota Cia Financiera Series 32 in Pesos. Maturity 02-09-2025 |
|
57287 |
|
179 |
3 |
179 |
|
0 |
|
179 |
- |
179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Private Securities - In pesos |
|
|
|
498,709 |
|
498,709 |
|
- |
|
498,709 |
- |
498,709 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Private Securities - In foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bond Central Puerto Series A in US$. Maturity 03-14-2026 |
|
57363 |
|
1,651,592 |
2 |
1,651,592 |
|
0 |
|
1,651,592 |
- |
1,651,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Private Securities - In foreign currency |
|
|
|
1,651,592 |
|
1,651,592 |
|
- |
|
1,651,592 |
- |
1,651,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS |
|
|
|
226,082,874 |
|
226,082,874 |
|
79,470,642 |
|
226,082,874 |
(426,095) |
225,656,779 |
EXHIBIT A
(Continued)
BREAKDOWN OF GOVERNMENT AND PRIVATE SECURITIES
CONSOLIDATED WITH SUBSIDIARIES
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.)
(Translation of Financial statements originally
issued in Spanish - See Note 54)
|
|
|
|
HOLDING |
|
POSITION |
|
|
|
|
Fair value |
Fair value level |
Accounting balance |
|
Accounting balance |
|
Position with
no options |
|
Final position |
Account |
|
Identification |
|
|
|
Options |
|
|
|
|
|
12.31.23 |
|
12.31.22 |
|
|
|
OTHER DEBT SECURITIES |
|
|
|
|
|
|
|
|
|
|
|
|
MEASURED AT FAIR VALUE THROUGH OCI |
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
|
|
|
Government Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
Treasury Bonds in pesos adjusted by Cer 4.25%. Maturity 12-13-2024 |
|
9200 |
|
218,925,057 |
1 |
218,925,057 |
|
- |
|
218,925,057 |
(494,268) |
218,430,789 |
Treasury Bonds in pesos adjusted by Cer 4%. Maturity 10-14-2024 |
|
9179 |
|
194,471,116 |
1 |
194,471,116 |
|
- |
|
194,471,116 |
(438,405) |
194,032,711 |
Treasury Bonds in pesos adjusted by Cer 4.25%. Maturity 02-14-2025 |
|
9180 |
|
56,074,420 |
1 |
56,074,420 |
|
- |
|
56,074,420 |
(105,801) |
55,968,619 |
Treasury Bonds in pesos adjusted by 1.55% CER. Maturity 07-26-2024 |
|
5405 |
|
51,382,569 |
1 |
51,382,569 |
|
79,834,269 |
|
51,382,569 |
- |
51,382,569 |
Treasury Bonds in pesos adjusted by 3.75% CER. Maturity 04-14-2024 |
|
9178 |
|
791,192 |
1 |
791,192 |
|
- |
|
791,192 |
(1,125) |
790,067 |
Treasury Bonds in pesos adjusted by 1.50% CER. Maturity 03-25-2024 |
|
5493 |
|
166,382 |
1 |
166,382 |
|
77,406,739 |
|
166,382 |
- |
166,382 |
Argentine Treasury Bonds in pesos adjusted by Cer 2%. Maturity 11-09-2026 |
|
5925 |
|
33,984 |
1 |
33,984 |
|
25,733,504 |
|
33,984 |
- |
33,984 |
Treasury Bonds in pesos adjusted by 1.45% CER. Maturity 08-13-2023 |
|
5497 |
|
- |
2 |
- |
|
64,755,218 |
|
- |
- |
- |
Treasury Bills adjusted by CER. Maturity 05-19-2023 |
|
9127 |
|
- |
1 |
- |
|
41,147,674 |
|
- |
- |
- |
Treasury Bills at discount. ARS. Maturity 03-31-2023 |
|
9164 |
|
- |
2 |
- |
|
28,272,875 |
|
- |
- |
- |
Treasury Bonds in pesos adjusted by 1.40% CER. Maturity 03-25-2023 |
|
5492/81012 |
|
- |
1 |
- |
|
27,186,318 |
|
- |
- |
- |
Treasury Bills at discount. ARS. Maturity 04-28-2023 |
|
9142 |
|
- |
2 |
- |
|
24,896,271 |
|
- |
- |
- |
Treasury Bills adjusted by CER. Maturity 06-16-2023 |
|
9152 |
|
- |
1 |
- |
|
15,154,084 |
|
- |
- |
- |
Treasury Bills at discount. ARS. Maturity 05-31-2023 |
|
9171 |
|
- |
2 |
- |
|
4,552,030 |
|
- |
- |
- |
Treasury Bills adjusted by CER. Maturity 04-21-2023 |
|
9118 |
|
- |
1 |
- |
|
2,075,455 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Government Securities - In pesos |
|
|
|
521,844,720 |
|
521,844,720 |
|
391,014,437 |
|
521,844,720 |
(1,039,599) |
520,805,121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Government Securities - In foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollar-linked Argentine Treasury Bond. 0.40%. Maturity 04-30-2024
|
|
9120 |
|
29,721 |
1 |
29,721 |
|
- |
|
29,721 |
- |
29,721 |
Dollar-linked Argentine Treasury Bonds. Maturity 04-28-2023
|
|
5928 |
|
- |
1 |
- |
|
835,190 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Government Securities - In foreign currency |
|
|
|
29,721 |
|
29,721 |
|
835,190 |
|
29,721 |
- |
29,721 |
|
|
|
|
|
|
|
|
|
|
|
|
|
BCRA Bills - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BCRA Liquidity Bills in pesos. Maturity 01-11-2024 |
|
14085 |
|
55,990,918 |
2 |
55,990,918 |
|
- |
|
55,990,918 |
- |
55,990,918 |
BCRA Liquidity Bills in pesos. Maturity 01-09-2024 |
|
14084 |
|
4,444,215 |
2 |
4,444,215 |
|
- |
|
4,444,215 |
- |
4,444,215 |
BCRA Liquidity Bills in pesos. Maturity 01-02-2024 |
|
14077 |
|
49,863 |
2 |
49,863 |
|
- |
|
49,863 |
- |
49,863 |
BCRA Liquidity Bills in pesos. Maturity 01-26-2023 |
|
13934 |
|
- |
2 |
- |
|
516,342,664 |
|
- |
- |
- |
BCRA Liquidity Bills in pesos. Maturity 01-03-2023 |
|
13927 |
|
- |
2 |
- |
|
185,356,395 |
|
- |
- |
- |
BCRA Liquidity Bills in pesos. Maturity 01-05-2023 |
|
13928 |
|
- |
2 |
- |
|
184,805,499 |
|
- |
- |
- |
BCRA Liquidity Bills in pesos. Maturity 01-10-2023 |
|
13929 |
|
- |
2 |
- |
|
152,318,435 |
|
- |
- |
- |
BCRA Liquidity Bills in pesos. Maturity 01-17-2023 |
|
13931 |
|
- |
2 |
- |
|
150,203,008 |
|
- |
- |
- |
BCRA Liquidity Bills in pesos. Maturity 01-12-2023 |
|
13930 |
|
- |
2 |
- |
|
136,539,892 |
|
- |
- |
- |
BCRA Liquidity Bills in pesos. Maturity 01-19-2023 |
|
13932 |
|
- |
2 |
- |
|
134,601,157 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal BCRA Bills - In pesos |
|
|
|
60,484,996 |
|
60,484,996 |
|
1,460,167,050 |
|
60,484,996 |
- |
60,484,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT A
(Continued)
BREAKDOWN OF GOVERNMENT AND PRIVATE SECURITIES
CONSOLIDATED WITH SUBSIDIARIES
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.) (Translation of Financial statements originally issued in Spanish - See Note 54)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HOLDING |
POSITION |
|
|
|
|
|
Fair value level |
Accounting balance |
Accounting balance |
Position with no options |
|
|
Account |
|
Identification |
|
Fair value |
Options |
Final position |
|
|
|
|
|
12.31.23 |
12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER DEBT SECURITIES(Continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BCRA Bills - In foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local BCRA Bills in USD. Maturity 11-16-2024 |
|
12089 |
|
44,709,127 |
2 |
44,709,127 |
- |
44,709,127 |
- |
44,709,127 |
Local BCRA Bills in USD. Maturity 11-20-2024 |
|
12090 |
|
16,978,149 |
2 |
16,978,149 |
- |
16,978,149 |
- |
16,978,149 |
Local BCRA Bills in USD. Maturity 11-23-2024 |
|
12093 |
|
6,467,866 |
2 |
6,467,866 |
- |
6,467,866 |
- |
6,467,866 |
Local BCRA Bills in USD. Maturity 11-27-2024 |
|
12095 |
|
1,616,967 |
2 |
1,616,967 |
- |
1,616,967 |
- |
1,616,967 |
Local BCRA Bills in USD. Maturity 10-03-2023 |
|
11815 |
|
- |
2 |
- |
1,654,764 |
- |
- |
- |
Local BCRA Bills in USD. Maturity 10-04-2023 |
|
11816 |
|
- |
2 |
- |
1,654,764 |
- |
- |
- |
Local BCRA Bills in USD. Maturity 09-29-2023 |
|
11808 |
|
- |
2 |
- |
1,654,764 |
- |
- |
- |
Local BCRA Bills in USD. Maturity 10-05-2023 |
|
11817 |
|
- |
2 |
- |
1,103,176 |
- |
- |
- |
Local BCRA Bills in USD. Maturity 09-23-2023 |
|
11804 |
|
- |
2 |
- |
551,587 |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
Subtotal BCRA Bills - In foreign currency |
|
|
|
69,772,109 |
|
69,772,109 |
6,619,055 |
69,772,109 |
- |
69,772,109 |
|
|
|
|
|
|
|
|
|
|
|
Private Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Bond Arcor Series 17 adjusted by UVA. Maturity 10-20-2025 |
|
55692 |
|
3,836,170 |
3 |
3,836,170 |
1,919,543 |
3,836,170 |
- |
3,836,170 |
Corporate Bond New San S.A. in Pesos Private BADLAR + 440 bps. Maturity 02-14-2024 |
|
56847 |
|
225,822 |
3 |
225,822 |
- |
225,822 |
- |
225,822 |
Corporate Bond Bco. de Serv. Financieros Series 22 in Pesos at Floating rate. Maturity 03-03-2024 |
|
56886 |
|
216,530 |
3 |
216,530 |
- |
216,530 |
- |
216,530 |
Corporate Bond Petroquímica Com. Rivadavia S.A. in Pesos at Floating Rate. Maturity 08-15-2024 |
|
56855 |
|
172,734 |
3 |
172,734 |
- |
172,734 |
- |
172,734 |
Corporate Bond New San S.A. in Pesos Private BADLAR + 575 bps. Maturity 05-19-2024 |
|
57044 |
|
152,317 |
3 |
152,317 |
- |
152,317 |
- |
152,317 |
Corporate Bond Refi Pampa Series 2 adjusted by UVA. Maturity 05-06-2025 |
|
56123 |
|
87,204 |
3 |
87,204 |
105,526 |
87,204 |
- |
87,204 |
|
|
|
|
|
|
|
|
|
|
|
Subtotal Private Securities - In pesos |
|
|
|
4,690,777 |
|
4,690,777 |
2,025,069 |
4,690,777 |
- |
4,690,777 |
|
|
|
|
|
|
|
|
|
|
|
Private Securities - In foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Bond Pampa Energia S.A. Series 18 in USD. Maturity 09-08-2025 |
|
57326 |
|
1,602,518 |
2 |
1,602,518 |
- |
1,602,518 |
- |
1,602,518 |
Corporate Bond Empresa de Gas del Sur (EMGASUD) S.A. Series 39 in USD. Maturity 07-14-2028 |
|
57194 |
|
1,338,658 |
2 |
1,338,658 |
- |
1,338,658 |
- |
1,338,658 |
Corporate Bond Vista Energy Series 20 USD. Maturity 07-20-2025 |
|
57081 |
|
1,326,772 |
2 |
1,326,772 |
- |
1,326,772 |
- |
1,326,772 |
Corporate Bond Luz De Tres Picos 4 USD. Maturity 09-29-2026 |
|
56467 |
|
347 |
2 |
347 |
1,731,557 |
347 |
- |
347 |
Corporate bond Petroquimica Comodoro Rivadavia Series O in USD. Maturity 09-22-2027 |
|
57379 |
|
118 |
2 |
118 |
- |
118 |
- |
118 |
Corporate Bond Petroquímica Comodoro Rivadavia Series H USD. Maturity 12-17-2024 |
|
55849 |
|
- |
2 |
- |
589,815 |
- |
- |
- |
Corporate Bond Vista Energy Series 13 USD. Maturity 08-08-2024 |
|
56207 |
|
- |
2 |
- |
4,213,672 |
- |
- |
- |
Corporate Bond Vista Energy Series 15 USD. Maturity 01-21-2025 |
|
56637 |
|
- |
2 |
- |
2,755,540 |
- |
- |
- |
Dollar-linked Corporate Bond Molinos Agro SA. Maturity 05-18-2023 |
|
55364 |
|
- |
2 |
- |
277,783 |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
Subtotal Private Securities - In foreign currency |
|
|
|
4,268,413 |
|
4,268,413 |
9,568,367 |
4,268,413 |
- |
4,268,413 |
|
|
|
|
|
|
|
|
|
|
|
TOTAL DEBT SECURITIES AT FAIR VALUE THROUGH OCI |
|
|
|
661,090,736 |
|
661,090,736 |
1,870,229,168 |
661,090,736 |
(1,039,599) |
660,051,137 |
EXHIBIT A
(Continued)
BREAKDOWN OF GOVERNMENT AND PRIVATE SECURITIES
CONSOLIDATED WITH SUBSIDIARIES
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.) (Translation of Financial statements originally issued in Spanish - See Note 54)
|
|
|
|
HOLDING |
|
POSITION |
|
|
Identification |
|
Fair
value |
Fair value level |
Accounting balance |
|
Accounting balance |
|
Position with no options |
Options |
Final position |
Account |
|
|
|
|
|
|
|
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER DEBT SECURITIES(Continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEASURED AT AMORTIZED COST |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Argentine Treasury Bonds in pesos. Maturity 08-23-2025 |
|
9196 |
|
49,560,876 |
2 |
49,502,692 |
|
- |
|
49,502,692 |
- |
49,502,692 |
Argentine Treasury Bonds in pesos. Maturity 05-23-2027 |
|
9132 |
|
32,289,635 |
2 |
32,406,871 |
|
100,997,240 |
|
32,406,871 |
- |
32,406,871 |
Argentine Treasury Bonds in pesos at 0.7% Badlar Private Rate. Maturity 11-23-2027 |
|
9166 |
|
15,316,803 |
2 |
14,771,877 |
|
37,662,724 |
|
14,771,877 |
- |
14,771,877 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Government Securities - In pesos |
|
|
|
97,167,314 |
|
96,681,440 |
|
138,659,964 |
|
96,681,440 |
- |
96,681,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL DEBT SECURITIES AT AMORTIZED COST |
|
|
|
97,167,314 |
|
96,681,440 |
|
138,659,964 |
|
96,681,440 |
- |
96,681,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OTHER DEBT SECURITIES |
|
|
|
758,258,050 |
|
757,772,176 |
|
2,008,889,132 |
|
757,772,176 |
(1,039,599) |
756,732,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY INSTRUMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
|
|
|
Private Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BYMA- Bolsas y Mercados Argentina Share |
|
|
|
2,169,288 |
1 |
2,169,288 |
|
1,741,880 |
|
2,169,288 |
- |
2,169,288 |
Banco de Valores de Bs. As. Share |
|
|
|
1,056,648 |
1 |
1,056,648 |
|
991,886 |
|
1,056,648 |
- |
1,056,648 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Private Securities - In pesos |
|
|
|
3,225,936 |
|
3,225,936 |
|
2,733,766 |
|
3,225,936 |
- |
3,225,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY INSTRUMENTS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS |
|
|
|
3,225,936 |
|
3,225,936 |
|
2,733,766 |
|
3,225,936 |
- |
3,225,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
MEASURED AT FAIR VALUE THROUGH OCI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
|
|
|
Private Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
1,552,778 |
3 |
1,552,778 |
|
676 |
|
1,552,778 |
- |
1,552,778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Private Securities - In pesos |
|
|
|
1,552,778 |
|
1,552,778 |
|
676 |
|
1,552,778 |
- |
1,552,778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign: |
|
|
|
|
|
|
|
|
|
|
|
|
Private Securities - In foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
432,216 |
2 |
432,216 |
|
187,625 |
|
432,216 |
- |
432,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Private Securities - In foreign currency |
|
|
|
432,216 |
|
432,216 |
|
187,625 |
|
432,216 |
- |
432,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY INSTRUMENTS MEASURED AT FAIR VALUE THROUGH OCI |
|
|
|
1,984,994 |
|
1,984,994 |
|
188,301 |
|
1,984,994 |
- |
1,984,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY INSTRUMENTS |
|
|
|
5,210,930 |
|
5,210,930 |
|
2,922,067 |
|
5,210,930 |
- |
5,210,930 |
EXHIBIT B
CLASSIFICATION OF LOANS AND OTHER FINANCING ACCORDING TO FINANCIAL
PERFORMANCE AND GUARANTEES RECEIVED
CONSOLIDATED WITH SUBSIDIARIES
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.) (Translation of Financial statements originally issued in Spanish - See Note 54)
Account |
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
|
COMMERCIAL PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
Normal performance |
|
901,927,628 |
|
797,919,157 |
|
Preferred collaterals and counter-guarantees “A” |
|
4,764,144 |
|
5,636,180 |
|
Preferred collaterals and counter-guarantees “B” |
|
4,969,137 |
|
8,688,611 |
|
No preferred guarantees or counter guarantees |
|
892,194,347 |
|
783,594,366 |
|
|
|
|
|
|
With special follow-up |
|
295,227 |
|
2,391,108 |
|
|
|
|
|
|
Under observation |
|
295,227 |
|
— |
|
Preferred collaterals and counter-guarantees “B” |
|
295,227 |
|
— |
|
|
|
|
|
|
Under negotiation or refinancing agreements |
|
— |
|
2,391,108 |
|
Preferred collaterals and counter-guarantees “B” |
|
— |
|
402,221 |
|
No preferred guarantees or counter guarantees |
|
— |
|
1,988,887 |
|
|
|
|
|
|
|
|
|
|
|
|
Troubled |
|
2,802,295 |
|
3,425,349 |
|
No preferred guarantees or counter guarantees |
|
2,802,295 |
|
3,425,349 |
|
|
|
|
|
|
With high risk of insolvency |
|
25,569 |
|
443,464 |
|
No preferred guarantees or counter guarantees |
|
25,569 |
|
443,464 |
|
|
|
|
|
|
Uncollectible |
|
32,691 |
|
85,173 |
|
No preferred guarantees or counter guarantees |
|
32,691 |
|
85,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
905,083,410 |
|
804,264,251 |
EXHIBIT B
(Continued)
CLASSIFICATION OF LOANS AND OTHER FINANCING ACCORDING TO FINANCIAL
PERFORMANCE AND GUARANTEES RECEIVED
CONSOLIDATED WITH SUBSIDIARIES
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.) (Translation of Financial statements originally issued in Spanish - See Note 54)
Account |
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
|
CONSUMER AND HOUSING PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
Normal performance |
|
1,193,059,141 |
|
1,527,621,788 |
|
Preferred collaterals and counter-guarantees “A” |
|
404,129 |
|
515,679 |
|
Preferred collaterals and counter-guarantees “B” |
|
98,031,798 |
|
174,469,679 |
|
No preferred guarantees or counter guarantees |
|
1,094,623,214 |
|
1,352,636,430 |
|
|
|
|
|
|
Low risk |
|
13,219,095 |
|
18,245,895 |
|
Preferred collaterals and counter-guarantees “B” |
|
793,014 |
|
1,738,174 |
|
No preferred guarantees or counter guarantees |
|
12,426,081 |
|
16,507,721 |
|
|
|
|
|
|
Low risk - with special follow-up |
|
468,023 |
|
577,349 |
|
No preferred guarantees or counter guarantees |
|
468,023 |
|
577,349 |
|
|
|
|
|
|
Medium risk |
|
12,941,133 |
|
12,376,332 |
|
Preferred collaterals and counter-guarantees “A” |
|
76 |
|
159 |
|
Preferred collaterals and counter-guarantees “B” |
|
203,596 |
|
514,492 |
|
No preferred guarantees or counter guarantees |
|
12,737,461 |
|
11,861,681 |
|
|
|
|
|
|
High risk |
|
9,837,653 |
|
8,708,516 |
|
Preferred collaterals and counter-guarantees “B” |
|
207,838 |
|
622,874 |
|
No preferred guarantees or counter guarantees |
|
9,629,815 |
|
8,085,642 |
|
|
|
|
|
|
Uncollectible |
|
1,837,914 |
|
1,817,480 |
|
Preferred collaterals and counter-guarantees “A” |
|
- |
|
13,397 |
|
Preferred collaterals and counter-guarantees “B” |
|
439,835 |
|
759,759 |
|
No preferred guarantees or counter guarantees |
|
1,398,079 |
|
1,044,324 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
1,231,362,959 |
|
1,569,347,360 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL GENERAL |
2,136,446,369 |
|
2,373,611,611 |
|
|
|
|
|
|
EXHIBIT C
CONCENTRATION OF LOANS AND OTHER FINANCING
CONSOLIDATED WITH SUBSIDIARIES
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.)
Translation of Financial statements originally
issued in Spanish - See Note 54)
|
|
12.31.23 |
|
12.31.22 |
|
|
Debt
balance |
|
% over
total
portfolio |
|
Debt
balance |
|
% over
total
portfolio |
Number of customers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10 largest customers |
|
242,661,656 |
|
11.36 % |
|
168,250,715 |
|
7.09 % |
50 following largest customers |
|
243,501,801 |
|
11.40 % |
|
265,770,722 |
|
11.20 % |
100 following largest customers |
|
171,688,942 |
|
8.04 % |
|
170,853,065 |
|
7.20 % |
All other customers |
|
1,478,593,970 |
|
69.20 % |
|
1,768,737,109 |
|
74.51 % |
|
|
|
|
|
|
|
|
|
TOTAL |
2,136,446,369 |
|
100.00 % |
|
2,373,611,611 |
|
100.00 % |
EXHIBIT D
BREAKDOWN BY TERM OF LOANS AND OTHER FINANCING
CONSOLIDATED WITH SUBSIDIARIES
AS OF DECEMBER 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.)
(Translation of Financial statements originally
issued in Spanish - See Note 54) (1)
|
|
|
Terms remaining to maturity |
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio |
1 |
3 |
6 |
12 |
24 |
more than |
|
ACCOUNT |
|
due |
month |
months |
months |
months |
months |
24 |
TOTAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-financial Government sector |
|
- |
48,601 |
66,916 |
18,112 |
25,548 |
51,096 |
80,902 |
291,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Sector |
|
- |
8,451,768 |
896,386 |
3,804,100 |
16,661,039 |
5,264,664 |
11,105,217 |
46,183,174 |
|
|
|
|
|
|
|
|
|
|
Non-financial Private Sector and Residents Abroad |
|
22,642,303 |
916,885,054 |
372,000,824 |
348,101,849 |
295,041,870 |
205,048,712 |
338,084,242 |
2,497,804,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
22,642,303 |
925,385,423 |
372,964,126 |
351,924,061 |
311,728,457 |
210,364,472 |
349,270,361 |
2,544,279,203 |
|
|
|
|
|
|
|
|
|
|
(1) These balances are total contractual flows and, therefore, include principal, accrued and to be accrued interest and charges. |
BREAKDOWN BY TERM OF LOANS AND OTHER FINANCING
CONSOLIDATED WITH SUBSIDIARIES
AS OF DECEMBER 31, 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.) (Translation of Financial statements originally issued in Spanish - See Note 54) (1)
|
|
Terms remaining to maturity |
|
Portfolio |
1 |
3 |
6 |
12 |
24 |
more than |
|
ACCOUNT |
due |
month |
months |
months |
months |
months |
24 |
TOTAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-financial Government sector |
- |
4,356 |
- |
- |
- |
- |
- |
4,356 |
|
|
|
|
|
|
|
|
|
B.C.R.A. |
- |
28,132 |
- |
- |
- |
- |
- |
28,132 |
|
|
|
|
|
|
|
|
|
Financial Sector |
- |
2,370,259 |
3,772,488 |
6,200,376 |
3,531,463 |
14,318,243 |
5,630,494 |
35,823,323 |
|
|
|
|
|
|
|
|
|
Non-financial Private Sector and Residents Abroad |
21,907,679 |
1,132,615,139 |
374,381,511 |
278,196,421 |
232,971,610 |
235,766,841 |
427,496,695 |
2,703,335,896 |
|
|
|
|
|
|
|
|
|
TOTAL |
21,907,679 |
1,135,017,886 |
378,153,999 |
284,396,797 |
236,503,073 |
250,085,084 |
433,127,189 |
2,739,191,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) These balances are total contractual flows and, therefore, include principal, accrued and to be accrued interest and charges. |
EXHIBIT F
PROPERTY AND EQUIPMENT
CONSOLIDATED WITH SUBSIDIARIES
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.)
(Translation of Financial statements originally
issued in Spanish - See Note 54)
|
|
|
|
|
Impairment |
|
Depreciation |
|
|
Original
Value
at the beginning
of the year |
Total
estimated
useful life
in years |
|
|
|
|
|
|
|
|
|
|
Accumulated as of
12.31.22 |
|
|
|
Residual value
as of 12.31.23 |
Account |
Additions |
Derecognitions |
Loss |
Reversals |
|
Derecognition |
For the year |
At year-end |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real property |
250,457,251 |
50 |
7,237,139 |
4,047,487 |
797,137 |
1,115,683 |
|
29,949,055 |
3,921,995 |
5,430,127 |
31,457,187 |
222,508,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Furniture and facilities |
79,875,253 |
10 |
6,823,323 |
3,845,808 |
- |
- |
|
40,111,404 |
3,839,926 |
8,240,702 |
44,512,180 |
38,340,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Machinery and equipment |
21,564,142 |
5 |
4,856,805 |
10,355,720 |
- |
- |
|
11,852,022 |
10,355,720 |
6,682,721 |
8,179,023 |
7,886,204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicles |
2,128,239 |
5 |
538,173 |
155,402 |
- |
- |
|
1,256,186 |
127,053 |
319,413 |
1,448,546 |
1,062,464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Right of use of leased property |
43,134,100 |
10 |
9,478,874 |
3,501,450 |
- |
- |
|
24,899,086 |
2,530,022 |
2,401,985 |
24,771,049 |
24,340,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction in progress |
10,183,431 |
- |
4,339,376 |
10,443,032 |
- |
- |
|
- |
- |
- |
- |
4,079,775 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Property and equipment |
407,342,416 |
|
33,273,690 |
32,348,899 |
797,137 |
1,115,683 |
|
108,067,753 |
20,774,716 |
23,074,948 |
110,367,985 |
298,217,768 |
PROPERTY AND EQUIPMENT
CONSOLIDATED WITH SUBSIDIARIES
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.) (Translation of Financial statements originally issued in Spanish - See Note 54)
|
|
|
|
|
|
Impairment |
|
Depreciation |
|
|
Original
Value
at the beginning
of the year |
Total
estimated
useful life
in years |
|
|
|
|
|
Account |
|
|
|
|
|
Accumulated as of
12.31.21 |
|
|
|
|
Residual value as of
12.31.22 |
|
Transfer |
Additions |
Derecognitions |
Loss |
|
Transfer |
Derecognition |
For the year |
At year-end |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real property |
251,274,349 |
50 |
(11,218,254) |
13,274,105 |
681,396 |
2,191,553 |
|
25,787,639 |
(852,230) |
681,400 |
5,695,046 |
29,949,055 |
220,508,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Furniture and facilities |
76,868,344 |
10 |
- |
5,285,188 |
2,278,279 |
- |
|
34,387,046 |
- |
2,278,279 |
8,002,637 |
40,111,404 |
39,763,849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Machinery and equipment |
31,632,714 |
5 |
- |
5,800,014 |
15,868,586 |
- |
|
18,953,524 |
- |
15,868,594 |
8,767,092 |
11,852,022 |
9,712,120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicles |
1,651,357 |
5 |
- |
513,018 |
36,136 |
- |
|
1,075,490 |
- |
49,424 |
230,120 |
1,256,186 |
872,053 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Right of use of leased property |
40,221,233 |
10 |
- |
5,481,451 |
2,568,584 |
- |
|
19,361,921 |
- |
749,122 |
6,286,287 |
24,899,086 |
18,235,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction in progress |
6,805,011 |
- |
- |
3,378,420 |
- |
- |
|
- |
- |
- |
- |
- |
10,183,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Property and equipment |
408,453,008 |
|
(11,218,254) |
33,732,196 |
21,432,981 |
2,191,553 |
|
99,565,620 |
(852,230) |
19,626,819 |
28,981,182 |
108,067,753 |
299,274,663 |
EXHIBIT F
(Continued)
INVESTMENT PROPERTY
CONSOLIDATED WITH SUBSIDIARIES
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.)
(Translation of Financial statements originally
issued in Spanish - See Note 54)
|
|
|
|
|
Impairment |
|
Depreciation |
|
|
|
Original
Value
at the beginning
of the year |
|
Total
estimated
useful life
in years |
|
|
|
|
|
|
|
|
|
Accumulated as of
12.31.22 |
|
|
|
|
|
Residual value as of
12.31.23 |
Account |
|
|
Loss |
|
|
For the year |
|
At year-end |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased property |
63,383,556 |
|
50 |
|
238,314 |
|
3,093,466 |
|
1,042,897 |
|
4,136,363 |
|
59,008,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other investment property |
1,390,160 |
|
10 |
|
- |
|
216,080 |
|
30,095 |
|
246,175 |
|
1,143,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investment property |
64,773,716 |
|
|
|
238,314 |
|
3,309,546 |
|
1,072,992 |
|
4,382,538 |
|
60,152,864 |
INVESTMENT PROPERTY
CONSOLIDATED WITH SUBSIDIARIES
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.) (Translation of Financial statements originally issued in Spanish - See Note 54)
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
Original
Value
at the beginning
of the year |
|
Total
estimated
useful life
in years |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated as of
12.31.21 |
|
|
|
|
|
|
|
Residual value as of
12.31.22 |
Account |
|
|
Transfer |
|
Additions |
|
|
Transfer |
|
For the year |
|
At year-end |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased property |
17,108,613 |
|
50 |
|
11,218,254 |
|
35,056,689 |
|
1,328,347 |
|
852,230 |
|
912,889 |
|
3,093,466 |
|
60,290,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other investment property |
1,390,160 |
|
10 |
|
- |
|
- |
|
185,984 |
|
- |
|
30,096 |
|
216,080 |
|
1,174,080 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investment property |
18,498,773 |
|
|
|
11,218,254 |
|
35,056,689 |
|
1,514,331 |
|
852,230 |
|
942,985 |
|
3,309,546 |
|
61,464,170 |
EXHIBIT G
INTANGIBLE ASSETS
CONSOLIDATED WITH SUBSIDIARIES
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.) (Translation of Financial statements originally issued in Spanish - See Note 54)
|
|
|
|
|
|
|
|
|
Amortization |
|
|
|
Original
Value
at the beginning
of the year |
|
Total
estimated
useful life
in years |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated as of
12.31.22 |
|
|
|
|
|
|
|
Residual value as of
12.31.23 |
Account |
|
|
Additions |
|
Derecognitions |
|
|
Derecognition |
|
For the year |
|
At year-end |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Own systems development expenses
|
36,890,044 |
|
5 |
|
8,804,083 |
|
3,919,986 |
|
6,940,402 |
|
2,031,095 |
|
3,727,340 |
|
8,636,647 |
|
33,137,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Intangible Assets |
36,890,044 |
|
|
|
8,804,083 |
|
3,919,986 |
|
6,940,402 |
|
2,031,095 |
|
3,727,340 |
|
8,636,647 |
|
33,137,494 |
INTANGIBLE ASSETS
CONSOLIDATED WITH SUBSIDIARIES
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.) (Translation of Financial statements originally issued in Spanish - See Note 54)
|
|
|
|
|
|
|
|
|
Amortization |
|
|
|
Original
Value
at the beginning
of the year |
|
Total
estimated
useful life
in years |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated as of
12.31.21 |
|
|
|
|
|
|
|
Residual value as of
12.31.22 |
Account |
|
|
Additions |
|
Derecognitions |
|
|
Derecognition |
|
For the year |
|
At year-end |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Own systems development expenses
|
28,495,777 |
|
5 |
|
17,369,505 |
|
8,975,238 |
|
6,199,731 |
|
1,308,367 |
|
2,049,038 |
|
6,940,402 |
|
29,949,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Intangible Assets |
28,495,777 |
|
|
|
17,369,505 |
|
8,975,238 |
|
6,199,731 |
|
1,308,367 |
|
2,049,038 |
|
6,940,402 |
|
29,949,642 |
EXHIBIT H
DEPOSITS CONCENTRATION
CONSOLIDATED WITH SUBSIDIARIES
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.) (Translation of Financial statements originally issued in Spanish - See Note 54)
|
|
|
12.31.23 |
|
12.31.22 |
|
|
|
Debt
balance |
% over
total
portfolio |
|
Debt
balance |
% over
Debt
portfolio |
|
Number of customers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10 largest customers |
|
550,858,950 |
15.14 % |
|
304,614,921 |
7.45 % |
|
|
|
|
|
|
|
|
|
50 following largest customers |
|
392,517,039 |
10.79 % |
|
439,358,749 |
10.74 % |
|
|
|
|
|
|
|
|
|
100 following largest customers |
|
186,621,640 |
5.13 % |
|
166,445,085 |
4.07 % |
|
|
|
|
|
|
|
|
|
All other customers |
|
2,509,309,031 |
68.94 % |
|
3,180,893,681 |
77.74 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
3,639,306,660 |
100.00 % |
|
4,091,312,436 |
100.00 % |
|
|
|
|
|
|
|
|
EXHIBIT I
BREAKDOWN OF FINANCIAL LIABILITIES BY REMAINING
TERMS
CONSOLIDATED WITH SUBSIDIARIES
AS OF DECEMBER 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.) (Translation of Financial statements originally issued in Spanish - See Note 54) (1)
|
|
Terms remaining to maturity |
|
|
|
|
|
|
|
|
|
|
|
1 |
3 |
6 |
12 |
24 |
more than |
|
|
ITEMS |
month |
months |
months |
months |
months |
24 |
TOTAL |
|
|
|
|
|
|
|
months |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
3,392,664,440 |
284,188,892 |
94,987,611 |
2,273,011 |
289,344 |
- |
3,774,403,298 |
|
Non-financial Government sector |
34,022,421 |
128,909 |
- |
- |
- |
- |
34,151,330 |
|
Financial Sector |
2,573,134 |
- |
- |
- |
- |
- |
2,573,134 |
|
Non-financial Private Sector and Residents Abroad |
3,356,068,885 |
284,059,983 |
94,987,611 |
2,273,011 |
289,344 |
- |
3,737,678,834 |
|
Liabilities at fair value through profit or loss |
10,330,335 |
- |
- |
- |
- |
- |
10,330,335 |
|
Derivative instruments |
2,145,218 |
- |
- |
- |
- |
- |
2,145,218 |
|
Other financial liabilities |
444,173,235 |
836,094 |
1,196,097 |
2,234,222 |
3,417,457 |
18,682,425 |
470,539,530 |
|
Financing received from the BCRA and other financial institutions |
21,326,373 |
3,117,108 |
4,217,809 |
13,515,864 |
8,008,073 |
9,365 |
50,194,592 |
|
Corporate bonds issued |
- |
- |
- |
15,702,299 |
- |
- |
15,702,299 |
|
|
|
|
|
|
|
|
|
|
TOTAL |
3,870,639,601 |
288,142,094 |
100,401,517 |
33,725,396 |
11,714,874 |
18,691,790 |
4,323,315,272 |
|
|
|
|
|
|
|
|
|
|
(1) These balances are total contractual flows and, therefore, include principal, accrued and to be accrued interest and charges. |
BREAKDOWN OF FINANCIAL LIABILITIES BY REMAINING
TERMS
CONSOLIDATED WITH SUBSIDIARIES
AS OF DECEMBER 31, 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.) (Translation of Financial statements originally issued in Spanish - See Note 54) (1)
|
|
Terms remaining to maturity |
|
|
|
|
|
|
|
|
|
|
|
1 |
3 |
6 |
12 |
24 |
more than |
|
|
ACCOUNTS |
month |
months |
months |
months |
months |
24 |
TOTAL |
|
|
|
|
|
|
|
months |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
3,515,940,493 |
327,162,489 |
329,496,700 |
4,208,765 |
241,878 |
- |
4,177,050,325 |
|
Non-financial Government sector |
29,901,568 |
420,326 |
- |
- |
- |
- |
30,321,894 |
|
Financial Sector |
1,058,808 |
- |
- |
- |
- |
- |
1,058,808 |
|
Non-financial Private Sector and Residents Abroad |
3,484,980,117 |
326,742,163 |
329,496,700 |
4,208,765 |
241,878 |
- |
4,145,669,623 |
|
Derivative instruments |
1,041,154 |
- |
- |
- |
- |
- |
1,041,154 |
|
Other financial liabilities |
363,956,611 |
872,652 |
1,161,158 |
1,854,157 |
3,258,388 |
15,163,485 |
386,266,451 |
|
Financing received from the BCRA and other financial institutions |
43,264,465 |
4,921,713 |
12,102,413 |
7,329,484 |
6,888,318 |
550,136 |
75,056,529 |
|
Corporate bonds issued |
- |
595,356 |
- |
- |
- |
- |
595,356 |
|
|
|
|
|
|
|
|
|
|
TOTAL |
3,924,202,723 |
333,552,210 |
342,760,271 |
13,392,406 |
10,388,584 |
15,713,621 |
4,640,009,815 |
|
|
|
|
|
|
|
|
|
|
(1) These balances are total contractual flows and, therefore, include principal, accrued and to be accrued interest and charges. |
EXHIBIT J
PROVISIONS
CONSOLIDATED WITH SUBSIDIARIES
AS OF DECEMBER 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.) (Translation of Financial statements originally issued in Spanish - See Note 54)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decreases |
|
|
|
|
Accounts |
Balances at the beginning of the year |
Increases |
|
Reversals |
Uses |
Monetary (loss) generated by provisions |
|
Balances as of 12.31.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCLUDED IN LIABILITIES |
|
|
|
|
|
|
|
|
|
- Provisions for contingent commitments |
8,389,890 |
4,849,781 |
(1)(3) |
- |
- |
(7,267,301) |
|
5,972,370 |
|
|
|
|
|
|
|
|
|
|
|
- For administrative, disciplinary and criminal penalties |
15,570 |
- |
|
- |
- |
(10,570) |
|
5,000 |
|
|
|
|
|
|
|
|
|
|
|
- Provisions for termination plans |
1,413,835 |
477,840 |
|
- |
- |
(1,121,574) |
|
770,101 |
|
|
|
|
|
|
|
|
|
|
|
- Other |
17,177,861 |
16,012,415 |
(2)(4) |
104,110 |
4,908,103 |
(14,201,771) |
|
13,976,292 |
|
|
|
|
|
|
|
|
|
|
|
TOTAL PROVISIONS |
26,997,156 |
21,340,036 |
|
104,110 |
4,908,103 |
(22,601,216) |
|
20,723,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Set up in compliance with the provisions of Communication “A” 6868 of the BCRA. |
(2) |
Set up to cover contingent events not considered in other items (civil, commercial, labor lawsuits and other). |
(3) |
Includes an increase of 114,526 for exchange differences in foreign currency for contingent commitments |
(4) |
It includes a decrease of 7,429 corresponding to the subsidiary Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (under liquidation) registered in Administrative expenses and the subsidiary BBVA Asset Management Argentina S.A.U. |
PROVISIONS
CONSOLIDATED WITH SUBSIDIARIES
AS OF DECEMBER 31, 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.) (Translation of Financial statements originally issued in Spanish - See Note 54)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decreases |
|
|
|
|
Accounts |
Balances at the beginning of the year |
Increases |
|
Reversals |
Uses |
Monetary (loss) generated by provisions |
|
Balances as of 12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCLUDED IN LIABILITIES |
|
|
|
|
|
|
|
|
|
- Provisions for contingent commitments |
5,178,233 |
6,367,666 |
(1)(4) |
- |
- |
(3,156,009) |
|
8,389,890 |
|
|
|
|
|
|
|
|
|
|
|
- For administrative, disciplinary and criminal penalties |
30,331 |
- |
|
- |
- |
(14,761) |
|
15,570 |
|
|
|
|
|
|
|
|
|
|
|
- Provisions for reorganization |
8,149,225 |
7,391,880 |
(3) |
709,547 |
11,531,927 |
(3,299,631) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
- Provisions for termination plans |
1,596,649 |
698,306 |
|
- |
- |
(881,120) |
|
1,413,835 |
|
|
|
|
|
|
|
|
|
|
|
- Other |
19,094,579 |
12,109,537 |
(2)(5) |
5,444 |
2,641,073 |
(11,379,738) |
|
17,177,861 |
|
|
|
|
|
|
|
|
|
|
|
TOTAL PROVISIONS |
34,049,017 |
26,567,389 |
|
714,991 |
14,173,000 |
(18,731,259) |
|
26,997,156 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Set up in compliance with the provisions of Communication “A” 6868 of the BCRA. |
(2) |
Set up to cover contingent events not considered in other items (civil, commercial, labor lawsuits and other). |
(3) |
See Note 23 to the consolidated financial statements. |
(4) |
Includes an increase of 8,296 for exchange differences in foreign currency for contingent commitments. |
(5) |
It includes a decrease of 1,492 corresponding to the subsidiary Consolidar
Administradora de Fondos de Jubilaciones y Pensiones S.A. (under liquidation).
|
EXHIBIT P
CATEGORIES OF CONSOLIDATED FINANCIAL ASSETS
AND LIABILITIES
AS OF DECEMBER 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.) (Translation of Financial statements originally issued in Spanish - See Note 54)
Accounts |
Amortized Cost |
FV through OCI |
FV through profit or loss |
Fair value hierarchy |
|
|
|
Statutory measurement |
Level 1 |
Level 2 |
Level 3 |
FINANCIAL ASSETS |
|
|
|
|
|
|
Cash and deposits in banks |
|
|
|
|
|
|
Cash |
727,271,193 |
- |
- |
- |
- |
- |
Financial institutions and correspondents |
415,678,677 |
- |
- |
- |
- |
- |
Debt securities at fair value through profit or loss |
- |
- |
226,082,874 |
223,932,573 |
1,651,592 |
498,709 |
Derivative instruments |
- |
- |
10,001,900 |
- |
10,001,900 |
- |
Repo transactions |
|
|
|
|
|
|
Argentine Central Bank (BCRA) |
1,202,421,795 |
- |
- |
- |
- |
- |
Other financial assets |
91,790,954 |
- |
741,812 |
741,812 |
- |
- |
Loans and other financing |
|
|
|
|
|
|
Non-financial Government sector |
145,208 |
- |
- |
- |
- |
- |
Other financial institutions |
16,432,085 |
- |
- |
- |
- |
- |
Non-financial Private Sector and Residents Abroad |
2,004,341,674 |
- |
- |
- |
- |
- |
Overdrafts |
176,515,811 |
- |
- |
- |
- |
- |
Instruments |
466,296,707 |
- |
- |
- |
- |
- |
Mortgage loans |
79,404,563 |
- |
- |
- |
- |
- |
Pledge loans |
44,335,196 |
- |
- |
- |
- |
- |
Consumer loans |
151,819,857 |
- |
- |
- |
- |
- |
Credit cards |
702,657,639 |
- |
- |
- |
- |
- |
Finance leases |
12,719,733 |
- |
- |
- |
- |
- |
Other |
370,592,168 |
- |
- |
- |
- |
- |
Other debt securities |
96,681,440 |
661,090,736 |
- |
521,874,440 |
134,525,519 |
4,690,777 |
Financial assets pledged as collateral |
124,914,314 |
136,720,428 |
- |
133,507,058 |
3,213,370 |
- |
Investments in equity instruments |
- |
1,984,994 |
3,225,936 |
3,225,936 |
432,216 |
1,552,778 |
TOTAL FINANCIAL ASSETS |
4,679,677,340 |
799,796,158 |
240,052,522 |
883,281,819 |
149,824,597 |
6,742,264 |
EXHIBIT P
(Continued)
CATEGORIES OF CONSOLIDATED FINANCIAL ASSETS
AND LIABILITIES
AS OF DECEMBER 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.) (Translation of Financial statements originally issued in Spanish - See Note 54)
Accounts |
Amortized Cost |
FV through OCI |
FV through profit or loss |
Fair value hierarchy |
|
|
|
Statutory measurement |
Level 1 |
Level 2 |
Level 3 |
FINANCIAL LIABILITIES |
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
Non-financial Government sector |
34,033,530 |
- |
- |
- |
- |
- |
Financial Sector |
2,573,134 |
- |
- |
- |
- |
- |
Non-financial Private Sector and Residents Abroad |
|
|
|
|
|
|
Checking accounts |
913,661,955 |
- |
- |
- |
- |
- |
Savings accounts |
1,720,155,659 |
- |
- |
- |
- |
- |
Time deposits and investments |
942,049,744 |
- |
- |
- |
- |
- |
Other |
26,832,638 |
- |
- |
- |
- |
- |
Liabilities at fair value through profit or loss |
- |
- |
10,330,335 |
- |
10,330,335 |
- |
Derivative instruments |
- |
- |
2,145,218 |
- |
2,145,218 |
- |
Repo transactions |
|
|
|
|
|
|
Other financial liabilities |
448,258,450 |
- |
- |
- |
- |
- |
Financing received from the BCRA and other financial institutions |
28,189,967 |
- |
- |
- |
- |
- |
Corporate bonds issued |
12,816,710 |
- |
- |
- |
- |
- |
TOTAL FINANCIAL LIABILITIES |
4,128,571,787 |
- |
12,475,553 |
- |
12,475,553 |
- |
EXHIBIT P
CATEGORIES OF CONSOLIDATED FINANCIAL ASSETS
AND LIABILITIES
AS OF DECEMBER 31, 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.)
(Translation of Financial statements originally
issued in Spanish - See Note 54)
Accounts |
Amortized Cost |
FV through OCI |
FV through profit or loss |
Fair value hierarchy |
|
|
|
Statutory measurement |
Level 1 |
Level 2 |
Level 3 |
FINANCIAL ASSETS |
|
|
|
|
|
|
Cash and deposits in banks |
|
|
|
|
|
|
Cash |
365,764,558 |
- |
- |
- |
- |
- |
Financial institutions and correspondents |
556,625,853 |
- |
- |
- |
- |
- |
Other |
281,050 |
- |
- |
- |
- |
- |
Debt securities at fair value through profit or loss |
- |
- |
79,470,642 |
12,198,634 |
67,272,008 |
- |
Derivative instruments |
- |
- |
7,063,310 |
- |
7,063,310 |
- |
Repo transactions |
|
|
|
|
|
|
Argentine Central Bank (BCRA) |
163,689,844 |
- |
- |
- |
- |
- |
Other financial assets |
91,174,464 |
- |
12,227,984 |
12,227,984 |
- |
- |
Loans and other financing |
|
|
|
|
|
|
Non-financial Government sector |
4,356 |
- |
- |
- |
- |
- |
B.C.R.A. |
28,132 |
- |
- |
- |
- |
- |
Other financial institutions |
13,903,746 |
- |
- |
- |
- |
- |
Non-financial Private Sector and Residents Abroad |
2,284,195,700 |
- |
- |
- |
- |
- |
Overdrafts |
196,021,914 |
- |
- |
- |
- |
- |
Instruments |
366,489,941 |
- |
- |
- |
- |
- |
Mortgage loans |
119,922,367 |
- |
- |
- |
- |
- |
Pledge loans |
76,942,252 |
- |
- |
- |
- |
- |
Consumer loans |
222,107,654 |
- |
- |
- |
- |
- |
Credit cards |
854,924,949 |
- |
- |
- |
- |
- |
Finance leases |
19,892,649 |
- |
- |
- |
- |
- |
Other |
427,893,974 |
- |
- |
- |
- |
- |
Other debt securities |
138,659,964 |
1,870,229,168 |
- |
163,805,460 |
1,704,398,639 |
2,025,069 |
Financial assets pledged as collateral |
91,851,261 |
52,003,019 |
- |
50,408,241 |
1,594,778 |
- |
Investments in equity instruments |
- |
188,301 |
2,733,766 |
2,733,766 |
188,301 |
- |
TOTAL FINANCIAL ASSETS |
3,706,178,928 |
1,922,420,488 |
101,495,702 |
241,374,085 |
1,780,517,036 |
2,025,069 |
EXHIBIT P
(Continued)
CATEGORIES OF CONSOLIDATED FINANCIAL ASSETS
AND LIABILITIES
AS OF DECEMBER 31, 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.)
(Translation of Financial statements originally
issued in Spanish - See Note 54)
Accounts |
Amortized Cost |
FV through OCI |
FV through profit or loss |
Fair value hierarchy |
|
|
|
Statutory measurement |
Level 1 |
Level 2 |
Level 3 |
FINANCIAL LIABILITIES |
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
Non-financial Government sector |
30,144,496 |
- |
- |
- |
- |
- |
Financial Sector |
1,058,807 |
- |
- |
- |
- |
- |
Non-financial Private Sector and Residents Abroad |
|
|
|
|
|
|
Checking accounts |
789,303,857 |
- |
- |
- |
- |
- |
Savings accounts |
1,554,031,357 |
- |
- |
- |
- |
- |
Time deposits and investments |
1,683,828,064 |
- |
- |
- |
- |
- |
Other |
32,945,855 |
- |
- |
- |
- |
- |
Derivative instruments |
- |
- |
1,041,154 |
- |
1,041,154 |
- |
Repo transactions |
|
|
|
|
|
|
Other financial liabilities |
368,805,430 |
- |
- |
- |
- |
- |
Financing received from the BCRA and other financial institutions |
61,886,118 |
- |
- |
- |
- |
- |
Corporate bonds issued |
595,354 |
- |
- |
- |
- |
- |
TOTAL FINANCIAL LIABILITIES |
4,522,599,338 |
- |
1,041,154 |
- |
1,041,154 |
- |
EXHIBIT Q
BREAKDOWN OF PROFIT OR LOSS
CONSOLIDATED WITH SUBSIDIARIES
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.) (Translation of Financial statements originally issued in Spanish - See Note 54)
|
|
|
Items |
Net Financial Income/(Expense) |
Statutory measurement |
12.31.23 |
12.31.22 |
Due to measurement of financial assets at fair value through profit or loss |
|
|
Income/(loss) from government securities |
(52,246,889) |
33,256,761 |
Income from private securities |
4,050,230 |
4,782,694 |
Income/(loss) from financial derivative instruments |
|
|
Forward transactions |
23,533,993 |
4,646,318 |
Interest rate swaps |
(177,777) |
314,816 |
Options |
(522,183) |
(107,924) |
Income from other financial assets |
1,373,985 |
61,172 |
Income from sale or write-off of financial assets at fair value |
- |
13,666,592 |
Due to measurement of financial liabilities at fair value through profit or loss |
|
|
Income/(loss) from other financial liabilities |
171 |
(16,442) |
TOTAL |
(23,988,470) |
56,603,987 |
Interest and adjustments due to application of effective interest rate of financial assets measured at amortized cost |
Financial Income/(Expense) |
12.31.23 |
12.31.22 |
Interest income |
|
|
Cash and deposits in banks |
2,350,832 |
1,710,489 |
Government securities |
42,559,543 |
44,303,243 |
Loans and other financing |
1,641,350,506 |
1,058,086,251 |
To the financial sector |
6,405,275 |
7,770,983 |
To the non-financial private sector |
|
|
Overdrafts |
175,982,067 |
89,584,141 |
Instruments |
332,571,766 |
123,306,207 |
Mortgage loans |
6,461,673 |
9,474,404 |
Pledge loans |
36,795,436 |
33,043,342 |
Consumer loans |
130,268,098 |
99,886,476 |
Credit cards |
280,546,581 |
194,999,904 |
Finance leases |
9,455,935 |
6,140,145 |
Other |
662,863,675 |
493,880,649 |
Repo transactions |
388,218,226 |
99,209,289 |
Argentine Central Bank (BCRA) |
387,654,578 |
99,015,567 |
Other financial institutions |
563,648 |
193,722 |
TOTAL |
2,074,479,107 |
1,203,309,272 |
Interest expense |
|
|
Deposits |
(1,525,069,597) |
(873,526,985) |
Checking accounts |
(311,542,572) |
(123,516,353) |
Savings accounts |
(7,156,496) |
(4,995,724) |
Time deposits and investments |
(1,206,357,367) |
(744,995,529) |
Other |
(13,162) |
(19,379) |
Financing received from the BCRA and other financial institutions |
(25,305,718) |
(27,087,785) |
Repo transactions |
(24,987) |
(83,678) |
Other financial institutions |
(24,987) |
(83,678) |
Other financial liabilities |
(4,614,829) |
(2,097,053) |
TOTAL |
(1,555,015,131) |
(902,795,501) |
EXHIBIT Q
(Continued)
BREAKDOWN OF PROFIT OR LOSS
CONSOLIDATED WITH SUBSIDIARIES
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.) (Translation of Financial statements originally issued in Spanish - See Note 54)
|
|
|
|
|
Interest and adjustments due to application of effective interest rate of financial assets at fair value through OCI |
Income for the year |
OCI |
12.31.23 |
12.31.22 |
12.31.23 |
12.31.22 |
Private debt securities |
3,463,339 |
2,064,035 |
3,750,709 |
369,707 |
Government debt securities |
1,106,004,210 |
754,457,922 |
295,303,105 |
(40,146,960) |
TOTAL |
1,109,467,549 |
756,521,957 |
299,053,814 |
(39,777,253) |
Commission income |
Income for the year |
|
|
12.31.23 |
12.31.22 |
|
|
Linked to obligations |
84,330,593 |
105,117,264 |
|
|
Linked to loans |
25,720,503 |
20,710,903 |
|
|
Linked to loan commitments and financial guarantees |
512,915 |
11,067 |
|
|
Linked to securities |
6,693,634 |
2,826,789 |
|
|
Linked to cards |
117,069,255 |
103,133,791 |
|
|
Linked to insurance |
9,635,209 |
10,964,732 |
|
|
Linked to foreign trade and exchange transactions |
10,834,946 |
10,966,990 |
|
|
TOTAL |
254,797,055 |
253,731,536 |
|
|
Commission expenses |
Income/(loss) for the year |
|
|
12.31.23 |
12.31.22 |
|
|
Linked to transactions with securities |
(67,420) |
(48,894) |
|
|
Linked to foreign trade and exchange transactions |
(18,507,530) |
(3,068,814) |
|
|
Other |
(97,266,756) |
(105,053,950) |
|
|
TOTAL |
(115,841,706) |
(108,171,658) |
|
|
EXHIBIT R
ADJUSTMENT TO IMPAIRMENT LOSS - ALLOWANCES FOR
LOAN LOSSES
CONSOLIDATED WITH SUBSIDIARIES
AS OF DECEMBER 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.) (Translation of Financial statements originally issued in Spanish - See Note 54)
|
|
|
ECL of remaining life of the financial asset |
|
|
|
Accounts |
Balances as of 12.31.22 |
ECL for the following 12 months |
FI with significant increase of credit risk |
FI with credit impairment |
Monetary gain (loss) generated by allowances |
|
Balances as of 12.31.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial assets |
1,438,804 |
513,555 |
- |
687,200 |
(1,220,615) |
|
1,418,944 |
|
|
|
|
|
|
|
|
Loans and other financing |
65,051,809 |
12,550,926 |
4,846,940 |
30,023,998 |
(67,052,096) |
|
45,421,577 |
Other financial institutions |
725,747 |
2,363,297 |
381,633 |
(2,494) |
(2,487,542) |
|
980,641 |
Non-financial Private Sector and Residents Abroad |
64,326,062 |
10,187,629 |
4,465,307 |
30,026,492 |
(64,564,554) |
|
44,440,936 |
Overdrafts |
3,246,275 |
1,356,943 |
899,852 |
1,045,942 |
(3,114,102) |
|
3,434,910 |
Instruments |
2,376,366 |
4,300,881 |
319,125 |
481,210 |
(3,632,912) |
|
3,844,670 |
Mortgage loans |
5,340,989 |
229,456 |
1,029,254 |
2,266,653 |
(5,558,785) |
|
3,307,567 |
Pledge loans |
2,376,174 |
192,135 |
42,513 |
(99,328) |
(1,847,548) |
|
663,946 |
Consumer loans |
12,764,465 |
1,440,012 |
1,254,698 |
9,516,323 |
(15,314,721) |
|
9,660,777 |
Credit cards |
31,438,695 |
4,526,241 |
539,977 |
13,571,199 |
(30,970,384) |
|
19,105,728 |
Finance leases |
604,321 |
181,234 |
115,009 |
196,767 |
(621,940) |
|
475,391 |
Other |
6,178,777 |
(2,039,273) |
264,879 |
3,047,726 |
(3,504,162) |
|
3,947,947 |
|
|
|
|
|
|
|
|
Other debt securities |
99,921 |
103,724 |
- |
- |
(105,617) |
|
98,028 |
|
|
|
|
|
|
|
|
Contingent commitments |
8,389,890 |
4,438,401 |
241,177 |
170,203 |
(7,267,301) |
|
5,972,370 |
|
|
|
|
|
|
|
|
TOTAL ALLOWANCES |
74,980,424 |
17,606,606 |
5,088,117 |
30,881,401 |
(75,645,629) |
|
52,910,919 |
ADJUSTMENT TO IMPAIRMENT LOSS - ALLOWANCES FOR
LOAN LOSSES
CONSOLIDATED WITH SUBSIDIARIES
AS OF DECEMBER 31, 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5.) (Translation of Financial statements originally issued in Spanish - See Note 54)
|
|
|
ECL of remaining life of the financial asset |
|
|
|
Accounts |
Balances as of 12.31.21 |
ECL for the following 12 months |
FI with significant increase of credit risk |
FI with credit impairment |
Monetary gain (loss) generated by allowances |
|
Balances as of 12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial assets |
1,747,338 |
389,416 |
- |
351,446 |
(1,049,396) |
|
1,438,804 |
|
|
|
|
|
|
|
|
Loans and other financing |
82,818,946 |
9,636,979 |
9,172,562 |
3,969,994 |
(40,546,672) |
|
65,051,809 |
Other financial institutions |
252,693 |
579,427 |
571,427 |
(8,377) |
(669,423) |
|
725,747 |
Non-financial Private Sector and Residents Abroad |
82,566,253 |
9,057,552 |
8,601,135 |
3,978,371 |
(39,877,249) |
|
64,326,062 |
Overdrafts |
1,951,484 |
1,627,569 |
651,617 |
1,034,736 |
(2,019,131) |
|
3,246,275 |
Instruments |
3,645,587 |
578,505 |
(65,211) |
(49,962) |
(1,732,553) |
|
2,376,366 |
Mortgage loans |
4,459,281 |
202,657 |
820,206 |
2,641,310 |
(2,782,465) |
|
5,340,989 |
Pledge loans |
3,447,975 |
(732,710) |
54,365 |
944,354 |
(1,337,810) |
|
2,376,174 |
Consumer loans |
15,576,157 |
1,171,116 |
(53,064) |
4,217,686 |
(8,147,430) |
|
12,764,465 |
Credit cards |
29,507,111 |
4,164,196 |
9,211,574 |
4,757,695 |
(16,201,881) |
|
31,438,695 |
Finance leases |
579,330 |
208,844 |
26,597 |
166,727 |
(377,177) |
|
604,321 |
Other |
23,399,328 |
1,837,375 |
(2,044,949) |
(9,734,175) |
(7,278,802) |
|
6,178,777 |
|
|
|
|
|
|
|
|
Other debt securities |
91,656 |
71,844 |
- |
- |
(63,579) |
|
99,921 |
|
|
|
|
|
|
|
|
Contingent commitments |
5,178,233 |
4,276,172 |
1,987,018 |
104,477 |
(3,156,010) |
|
8,389,890 |
|
|
|
|
|
|
|
|
TOTAL ALLOWANCES |
89,836,173 |
14,374,411 |
11,159,580 |
4,425,917 |
(44,815,657) |
|
74,980,424 |
SEPARATE STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of pesos constant
currency - Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish - See Note 40)
|
Notes and Exhibits |
|
12.31.23 |
|
12.31.22 |
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and deposits in banks |
4 and P |
|
1,141,811,692 |
|
921,360,521 |
|
|
|
|
|
|
|
Cash |
|
|
727,271,188 |
|
365,764,542 |
Financial institutions and correspondents |
|
|
414,540,504 |
|
555,314,929 |
B.C.R.A. |
|
|
358,900,596 |
|
502,282,567 |
Other in the country and abroad |
|
|
55,639,908 |
|
53,032,362 |
Other |
|
|
- |
|
281,050 |
|
|
|
|
|
|
|
Debt securities at fair value through profit or loss |
5, A and P |
|
225,903,834 |
|
79,470,642 |
|
|
|
|
|
|
|
Derivative instruments |
6 and P |
|
10,001,900 |
|
7,063,310 |
|
|
|
|
|
|
|
Repo transactions |
7 and P |
|
1,202,421,795 |
|
163,689,844 |
|
|
|
|
|
|
|
Other financial assets |
8 |
|
89,956,670 |
|
87,095,702 |
|
|
|
|
|
|
|
Loans and other financing |
9 |
|
1,892,503,669 |
|
2,123,409,867 |
|
|
|
|
|
|
|
Non-financial Government sector |
|
|
145,208 |
|
4,356 |
B.C.R.A. |
|
|
- |
|
28,132 |
Other financial institutions |
|
|
37,251,912 |
|
53,246,345 |
Non-financial Private Sector and Residents Abroad |
|
|
1,855,106,549 |
|
2,070,131,034 |
|
|
|
|
|
|
|
Other debt securities |
10, A and P |
|
752,956,738 |
|
2,008,700,688 |
|
|
|
|
|
|
|
Financial assets pledged as collateral |
11 and P |
|
261,631,781 |
|
143,846,159 |
|
|
|
|
|
|
|
Investments in equity instruments |
13, A and P |
|
5,210,930 |
|
2,922,067 |
|
|
|
|
|
|
|
Investments in subsidiaries and associates |
14 |
|
42,202,657 |
|
39,571,323 |
|
|
|
|
|
|
|
Property and equipment |
15 and F |
|
298,058,346 |
|
299,009,804 |
|
|
|
|
|
|
|
Intangible assets |
16 and G |
|
32,918,773 |
|
29,740,727 |
|
|
|
|
|
|
|
Other non-financial assets |
17 |
|
103,509,614 |
|
89,609,459 |
|
|
|
|
|
|
|
Non-current assets held for sale |
18 |
|
852,195 |
|
700,909 |
|
|
|
|
|
|
|
TOTAL ASSETS |
|
|
6,059,940,594 |
|
5,996,191,022 |
Notes and exhibits are an integral part of these separate financial statements. |
SEPARATE STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of pesos constant
currency - Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish - See Note 40)
|
Notes and Exhibits |
|
12.31.23 |
|
12.31.22 |
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
19, H and P |
|
3,644,186,549 |
|
4,073,400,845 |
|
|
|
|
|
|
|
Non-financial Government sector |
|
|
34,033,530 |
|
30,144,496 |
Financial Sector |
|
|
15,113,032 |
|
1,894,898 |
Non-financial Private Sector and Residents Abroad |
|
|
3,595,039,987 |
|
4,041,361,451 |
|
|
|
|
|
|
|
Liabilities at fair value through profit or loss |
20 |
|
10,330,335 |
|
- |
Derivative instruments |
6 and P |
|
2,145,218 |
|
1,041,154 |
|
|
|
|
|
|
|
Other financial liabilities |
21 and P |
|
443,747,921 |
|
363,440,550 |
|
|
|
|
|
|
|
Financing received from the BCRA and other financial institutions |
22 and P |
|
3,629,803 |
|
9,459,257 |
|
|
|
|
|
|
|
Current income tax liabilities |
12.2 |
|
190,510,030 |
|
20,350,245 |
|
|
|
|
|
|
|
Provisions |
J |
|
20,594,038 |
|
26,548,927 |
|
|
|
|
|
|
|
Deferred income tax liabilities |
12.3 |
|
23,416,180 |
|
20,837,953 |
|
|
|
|
|
|
|
Other non-financial liabilities |
24 |
|
315,211,011 |
|
358,554,198 |
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
|
4,653,771,085 |
|
4,873,633,129 |
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
|
Share capital |
2 |
|
612,710 |
|
612,710 |
Non-capitalized contributions |
|
|
6,744,974 |
|
6,744,974 |
Capital adjustments |
|
|
410,521,467 |
|
410,521,467 |
Reserves |
|
|
650,152,538 |
|
544,842,857 |
Retained earnings |
|
|
- |
|
33,635 |
Other accumulated comprehensive loss |
|
|
173,595,922 |
|
(23,351,032) |
Income for the year |
|
|
164,541,898 |
|
183,153,282 |
|
|
|
|
|
|
|
TOTAL EQUITY |
|
|
1,406,169,509 |
|
1,122,557,893 |
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
|
|
6,059,940,594 |
|
5,996,191,022 |
|
|
|
|
|
|
|
Notes and exhibits are an integral part of these separate financial statements. |
SEPARATE STATEMENT OF INCOME
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2023
AND 2022
(Amounts stated in thousands of pesos constant
currency - Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish - See Note 40)
|
|
Notes and Exhibits |
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
|
|
Interest income |
|
26 and Q |
|
|
3,090,202,565 |
|
|
1,895,546,898 |
Interest expense |
|
27 and Q |
|
|
(1,517,342,008) |
|
|
(871,723,964) |
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
1,572,860,557 |
|
|
1,023,822,934 |
|
|
|
|
|
|
|
|
|
Commission income |
|
28 and Q |
|
|
233,123,450 |
|
|
235,906,338 |
Commission expense |
|
29 and Q |
|
|
(118,010,445) |
|
|
(107,237,559) |
|
|
|
|
|
|
|
|
|
Net commission income |
|
|
|
|
115,113,005 |
|
|
128,668,779 |
|
|
|
|
|
|
|
|
|
Net income/(loss) from measurement of financial instruments at fair value through profit or loss |
30 y Q |
|
|
(27,668,962) |
|
|
51,798,242 |
Net income from write-down of assets at amortized cost and at fair value through OCI |
31 |
|
|
40,590,622 |
|
|
902,916 |
Foreign exchange and gold gains |
|
32 |
|
|
210,994,171 |
|
|
25,311,188 |
Other operating income |
|
33 |
|
|
66,266,255 |
|
|
65,444,820 |
Loan loss allowance |
|
|
|
|
(74,988,394) |
|
|
(58,178,629) |
|
|
|
|
|
|
|
|
|
Net operating income |
|
|
|
|
1,903,167,254 |
|
|
1,237,770,250 |
|
|
|
|
|
|
|
|
|
Personnel benefits |
|
34 |
|
|
(244,217,792) |
|
|
(207,653,032) |
Administrative expenses |
|
35 |
|
|
(246,181,142) |
|
|
(208,163,260) |
Asset depreciation and impairment |
|
36 |
|
|
(28,349,738) |
|
|
(33,876,669) |
Other operating expenses |
|
37 |
|
|
(251,666,233) |
|
|
(182,554,760) |
|
|
|
|
|
|
|
|
|
Operating income |
|
|
|
|
1,132,752,349 |
|
|
605,522,529 |
|
|
|
|
|
|
|
|
|
Income from associates and joint ventures |
|
|
|
|
9,126,700 |
|
|
4,424,572 |
Loss on net monetary position |
|
|
|
|
(848,268,946) |
|
|
(419,665,460) |
|
|
|
|
|
|
|
|
|
Income before income tax |
|
|
|
|
293,610,103 |
|
|
190,281,641 |
|
|
|
|
|
|
|
|
|
Income tax |
|
12.4 |
|
|
(129,068,205) |
|
|
(7,128,359) |
|
|
|
|
|
|
|
|
|
Net income for the year |
|
|
|
|
164,541,898 |
|
|
183,153,282 |
Notes and exhibits are an integral part of these separate financial statements. |
SEPARATE STATEMENT
OF INCOME
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2023
AND 2022
EARNINGS PER SHARE
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of pesos constant
currency - Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish - See Note 40)
|
|
|
|
|
Accounts |
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
|
|
|
Net income attributable to owners of the Parent |
|
164,541,898 |
|
183,153,282 |
Net income attributable to owners of the Parent adjusted to reflect the effect of dilution |
|
164,541,898 |
|
183,153,282 |
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
|
|
|
Weighted average of outstanding common shares for the year |
|
612,710,079 |
|
612,710,079 |
Weighted average of outstanding common shares for the year adjusted to reflect the effect of dilution |
|
612,710,079 |
|
612,710,079 |
|
|
|
|
|
Basic earnings per share (stated in pesos) |
|
268.5477 |
|
298.9232 |
Diluted earnings per share (stated in pesos) (1) |
|
268.5477 |
|
298.9232 |
(1) As
Banco BBVA Argentina S.A. has not issued financial instruments with dilution effects on earnings per share, basic earnings and diluted
earnings per share are equal.
SEPARATE STATEMENT OF OTHER
COMPREHENSIVE INCOME
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2023
AND 2022
(Amounts stated in thousands of pesos constant
currency - Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish - See Note 40)
|
Note |
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
|
Net income for the year |
|
|
164,541,898 |
|
183,153,282 |
|
|
|
|
|
|
Other comprehensive income components to be reclassified to income/(loss) for the year: |
|
|
|
|
|
|
|
|
|
|
|
Share in Other Comprehensive Income from associates and joint ventures at equity method |
|
|
|
|
|
|
|
|
|
|
|
Share in Other Comprehensive Income from associates and joint ventures at equity method |
|
|
675,261 |
|
339,444 |
|
|
|
|
|
|
|
|
|
675,261 |
|
339,444 |
|
|
|
|
|
|
Profit or losses from financial instruments at fair value through OCI |
|
|
|
|
|
|
|
|
|
|
|
Profit or losses from financial instruments at fair value through OCI |
|
|
330,435,531 |
|
(38,803,237) |
Reclassification adjustment for the year |
|
|
(34,816,817) |
|
(847,700) |
Income tax |
12.4 |
|
(100,730,775) |
|
11,851,448 |
|
|
|
|
|
|
|
|
|
194,887,939 |
|
(27,799,489) |
|
|
|
|
|
|
|
|
|
|
|
|
Income or loss on equity instruments at fair value through OCI (IFRS 9, paragraph 5.7.5) |
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) for the year from equity instruments at fair value through OCI |
|
|
1,383,754 |
|
(117,926) |
|
|
|
|
|
|
|
|
|
1,383,754 |
|
(117,926) |
|
|
|
|
|
|
Total Other Comprehensive Income/(loss) for the year |
|
|
196,946,954 |
|
(27,577,971) |
|
|
|
|
|
|
Total Comprehensive Income |
|
|
361,488,852 |
|
155,575,311 |
Notes and exhibits are an integral part of these separate financial statements. |
SEPARATE STATEMENT OF CHANGES IN SHAREHOLDERS’
EQUITY
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023
(Amounts stated in thousands of pesos constant
currency - Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish - See Note 40)
|
2023 |
|
Share Capital |
|
Non-capitalized contributions |
|
|
|
Other Comprehensive Income |
|
Reserves |
|
|
|
|
|
|
|
|
|
|
|
|
Transactions |
Outstanding Shares |
|
Share premium |
|
Adjustments to equity |
|
Income/(loss) on financial instruments at fair value through OCI |
Other |
|
Legal |
Other |
Retained earnings |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restated balances at the beginning of the year |
612,710 |
|
6,744,974 |
|
410,521,467 |
|
(23,350,990) |
(42) |
|
230,132,048 |
314,710,809 |
183,186,917 |
|
1,122,557,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Net income for the year |
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
164,541,898 |
|
164,541,898 |
- Other comprehensive income for the year |
- |
|
- |
|
- |
|
196,271,693 |
675,261 |
|
- |
- |
- |
|
196,946,954 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Distribution of Unappropriated Retained Earnings as per Shareholders’ Resolution dated April 28, 2023 (Note 43 to the consolidated financial statements): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal reserve |
- |
|
- |
|
- |
|
- |
- |
|
36,637,383 |
- |
(36,637,383) |
|
- |
Other |
- |
|
- |
|
- |
|
- |
- |
|
- |
146,549,534 |
(146,549,534) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Distribution of Dividends, as approved by the Shareholders’ Meeting held on
April 28, the BCRA on May 31 and at the Board of Directors’ meeting held on June 7, 2023 (Note 43 to the consolidated financial
statements):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends in kind and in cash (1) |
- |
|
- |
|
- |
|
- |
- |
|
- |
(77,877,236) |
- |
|
(77,877,236) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at fiscal year end |
612,710 |
|
6,744,974 |
|
410,521,467 |
|
172,920,703 |
675,219 |
|
266,769,431 |
383,383,107 |
164,541,898 |
|
1,406,169,509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) It represents $ 58.05 (in nominal values) per share. |
|
|
|
|
|
|
|
Notes and exhibits are an integral part of these separate financial
statements. |
|
|
|
|
|
|
|
SEPARATE STATEMENT OF CHANGES IN SHAREHOLDERS’
EQUITY
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022
(Amounts stated in thousands of pesos constant
currency - Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish - See Note 40)
|
2022 |
|
Share Capital |
|
Non-capitalized contributions |
|
|
|
Other Comprehensive Income |
|
Reserves |
|
|
|
|
|
|
|
|
|
|
|
|
Transactions
|
Outstanding Shares |
|
Share premium |
|
Adjustments to equity |
|
Income/(loss) on financial instruments at fair value through OCI |
Other |
|
Legal |
Other |
Retained earnings |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restated balances at the beginning of the year |
612,710 |
|
6,744,974 |
|
410,521,467 |
|
4,566,425 |
(339,486) |
|
206,267,829 |
219,253,933 |
119,321,095 |
|
966,948,947 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of the implementation of the financial reporting framework established by the BCRA - IFRS 9, paragraph 5.5 for Related Companies |
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
33,635 |
|
33,635 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted balance at the beginning of the year |
612,710 |
|
6,744,974 |
|
410,521,467 |
|
4,566,425 |
(339,486) |
|
206,267,829 |
219,253,933 |
119,354,730 |
|
966,982,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Net income for the year |
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
183,153,282 |
|
183,153,282 |
- Other comprehensive income/(loss) for the year |
- |
|
- |
|
- |
|
(27,917,415) |
339,444 |
|
- |
- |
- |
|
(27,577,971) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
- Distribution of Unappropriated Retained Earnings as per Shareholders’ Resolution dated April 29, 2022 (Note 43 to the consolidated financial statements) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal reserve |
- |
|
- |
|
- |
|
- |
- |
|
23,864,219 |
- |
(23,864,219) |
|
- |
Other |
- |
|
- |
|
- |
|
- |
- |
|
- |
95,456,876 |
(95,456,876) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at fiscal year end |
612,710 |
|
6,744,974 |
|
410,521,467 |
|
(23,350,990) |
(42) |
|
230,132,048 |
314,710,809 |
183,186,917 |
|
1,122,557,893 |
Notes and exhibits are an integral part of these separate financial statements. |
|
|
|
|
SEPARATE STATEMENT OF CASH FLOWS
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2023
AND 2022
(Amounts stated in thousands of pesos constant
currency - Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish - See Note 40)
Accounts |
|
12.31.23 |
|
12.31.22 |
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Income before income tax |
293,610,103 |
|
190,281,641 |
|
|
|
|
|
Adjustment for total monetary income for the year |
|
848,268,946 |
|
419,665,460 |
|
|
|
|
|
Adjustments to obtain cash flows from operating activities: |
(437,282,406) |
|
94,185,578 |
|
|
|
|
|
Depreciation and amortization |
28,349,738 |
|
33,876,669 |
Loan loss allowance |
74,988,394 |
|
58,178,629 |
Effect of foreign exchange changes on cash and cash equivalents |
|
(572,473,746) |
|
(3,630,892) |
Loss for the sale of Prisma Medios de Pagos S.A. |
|
- |
|
(13,666,592) |
Other adjustments |
31,853,208 |
|
19,427,764 |
|
|
|
|
|
Net increases from operating assets: |
(4,652,231,763) |
|
(3,248,991,635) |
|
|
|
|
|
Debt securities at fair value through profit or loss |
(285,756,418) |
|
(109,888,154) |
Derivative instruments |
(14,246,980) |
|
5,408,418 |
Repo transactions |
(1,531,744,781) |
|
465,369,700 |
Loans and other financing |
(2,078,568,489) |
|
(1,330,621,895) |
Non-financial Government sector |
(494,923) |
|
(4,135) |
Other financial institutions |
(27,775,282) |
|
(16,525,353) |
Non-financial Private Sector and Residents Abroad |
(2,050,298,284) |
|
(1,314,092,407) |
Other debt securities |
(200,489,308) |
|
(2,110,698,149) |
Financial assets pledged as collateral |
(330,537,557) |
|
(108,748,630) |
Investments in equity instruments |
(4,455,216) |
|
1,841,177 |
Other assets |
(206,433,014) |
|
(61,654,102) |
|
|
|
|
|
Net increases from operating liabilities: |
4,528,805,649 |
|
2,877,882,946 |
|
|
|
|
|
Deposits |
3,670,185,984 |
|
2,435,724,694 |
Non-financial Government sector |
33,598,935 |
|
(7,747,686) |
Financial Sector |
25,557,112 |
|
1,189,935 |
Non-financial Private Sector and Residents Abroad |
3,611,029,937 |
|
2,442,282,445 |
Liabilities at fair value through profit or loss |
10,591,720 |
|
130,261 |
Derivative instruments |
3,810,073 |
|
505,517 |
Repo transactions |
36,596 |
|
- |
Other liabilities |
844,181,276 |
|
441,522,474 |
|
|
|
|
|
Income tax paid |
(3,186,835) |
|
(693,846) |
|
|
|
|
|
Total cash flows generated by operating activities |
|
577,983,694 |
|
332,330,144 |
SEPARATE STATEMENT OF CASH FLOWS
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2023
AND 2022
(Amounts stated in thousands of pesos constant
currency - Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish - See Note 40)
|
|
|
|
|
Accounts |
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
Payments: |
(44,002,663) |
|
(87,846,522) |
|
|
|
|
|
Purchase of property and equipment, intangible assets and other assets |
(41,911,157) |
|
(50,852,154) |
Other payments related to investing activities |
(2,091,506) |
|
(36,994,368) |
|
|
|
|
|
Collections: |
8,827,227 |
|
11,047,616 |
|
|
|
|
|
Other collections related to investing activities |
8,827,227 |
|
11,047,616 |
|
|
|
|
|
Total cash flows used in investing activities |
(35,175,436) |
|
(76,798,906) |
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
Payments: |
(13,168,410) |
|
(16,875,790) |
|
|
|
|
|
Dividends |
(278,328) |
|
(8,024,881) |
Argentine Central Bank (BCRA) |
(156,045) |
|
- |
Financing from local financial institutions |
|
(6,507,652) |
|
(2,183,350) |
Leases |
|
(6,226,385) |
|
(6,667,559) |
|
|
|
|
|
Collections: |
834,244 |
|
1,748,778 |
|
|
|
|
|
Argentine Central Bank (BCRA) |
- |
|
31,633 |
Other collections related to financing activities |
834,244 |
|
1,717,145 |
|
|
|
|
|
Total cash flows used in financing activities |
(12,334,166) |
|
(15,127,012) |
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
572,473,746 |
|
3,630,892 |
Effect of monetary income/(loss) of cash and cash equivalents |
|
(882,496,667) |
|
(645,288,919) |
|
|
|
|
|
Total changes in cash flows |
220,451,171 |
|
(401,253,801) |
Restated cash and cash equivalents at the beginning of the year (Note 4) |
|
921,360,521 |
|
1,322,614,322 |
Cash and cash equivalents at fiscal year-end (Note 4) |
|
1,141,811,692 |
|
921,360,521 |
|
|
|
|
|
Notes and exhibits are an integral part of these separate financial statements. |
NOTES TO THE SEPARATE FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2023
(Amounts stated in thousands
of Argentine pesos in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements
originally issued in Spanish – See Note 40)
1. Basis for
the preparation of separate financial statements
As mentioned in Note 2 to the consolidated financial
statements, the Bank presents consolidated financial statements in accordance with the financial reporting framework set forth by the
Argentine Central Bank (BCRA).
These financial statements of the Bank are supplementary
to the consolidated financial statements mentioned above and are intended for the purposes of complying with legal and regulatory requirements.
2. Basis for
the preparation of these financial statements and applicable accounting standards
These separate financial statements of the Bank
were prepared in accordance with the financial reporting framework set forth by the BCRA (Communication “A” 6114 as supplemented
by the BCRA). Except for the exceptions established by the BCRA which are explained in the following paragraph, such framework is based
on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and adopted by
the Argentine Federation of Professionals Councils in Economic Sciences (FACPCE, for its acronym in Spanish). The abovementioned international
standards include the IFRS, the International Accounting Standards (IAS) and the interpretations developed by the IFRS Interpretations
Committee (IFRIC) or former IFRIC (SIC).
Out of the exceptions set forth by the BCRA to the
application of current IFRS, the following affect the preparation of these separate financial statements:
| a) | Within the framework of the convergence process
to IFRS established by Communication “A” 6114, as amended and supplemented, the BCRA provided that for fiscal years starting
on or after January 1, 2020, financial institutions defined as “Group A” according to BCRA regulations, as such is the case
of the Entity, are required to start to apply paragraph 5.5 “Impairment” of IFRS 9 “Financial Instruments” (paragraphs
B5.5.1 through B5.5.55) except for exposures to the public sector, considering the exclusion set forth by Communication “A”
6847. |
Had the abovementioned paragraph 5.5. “Impairment”
been applied in full, according to a global estimate made by the Entity, as of December 31, 2023 and 2022, its shareholders’ equity
would have been reduced by 9,360,898 and 13,958,955, respectively.
| b) | In March 2022, the transfer of the equity instruments
corresponding to the remaining interest in Prisma Medios de Pago S.A. was made, which instruments were measured at fair value as set forth
in Memorandum dated April 29, 2019 and March 22, 2021 received by the BCRA, and the income (loss) from their sale was recorded in the
quarter ended March 31, 2022. Had the IFRS been applied in order to determine the fair value above mentioned, the income (loss) for the
fiscal year ended December 31, 2022 would have changed. However, this situation did not generate differences as regards the shareholders’
equity value as of December 31, 2022. |
Except for what was mentioned in the previous paragraphs,
the accounting policies applied by the Entity comply with the IFRS that have been currently approved and are applicable in the preparation
of these separate financial statements in accordance with the IFRS as adopted by the BCRA as per Communication “A” 7411.
In general, the BCRA does not allow the early application of any IFRS, unless otherwise specified.
Likewise, the BCRA by means of Communications "A"
6323 and 6324 established guidelines for the preparation and presentation of financial statements of financial entities as from fiscal
years beginning on January 1, 2018, including additional information requirements as well as the information to be presented in the form
of Exhibits.
To avoid duplication of information already provided,
we refer to the consolidated financial statements regarding:
| – | General information (Note 1 to the consolidated financial statements) |
| – | Figures stated in thousands of pesos (Note
2.1.2. to the consolidated financial statements) |
| – | Presentation of Statement of Financial Position
(Note 2.1.3 to the consolidated financial statements) |
| – | Comparative information (Nota 2.1.4. to the
consolidated financial statements) |
| – | Measuring unit (Nota 2.1.5.
to the consolidated financial statements) |
| – | Summary of significant accounting policies
(Note 2.3 to the consolidated financial statements), except for the measurement of ownership interests in subsidiaries |
| – | Accounting judgments, estimates
and assumptions (Note 2.4. to the consolidated financial statements) |
| – | Regulatory changes introduced
during this fiscal year y New pronouncements (Note 2.5. and 2.6. respectively, to the consolidated financial statements) |
| – | Transcription to the books (Nota 2.7. to the
consolidated financial statements) |
| – | Provisions (Note 23 to the
consolidated financial statements) |
| – | Share capital (Note 26 to
the consolidated financial statements) |
| – | Fair values of financial
instruments (Note 39 to the consolidated financial statements) |
| – | Segment reporting (Note 40 to the consolidated
financial statements) |
| – | Related parties (Note 41
to the consolidated financial statements) |
| – | Financial instruments risks (Note 42 to the consolidated financial
statements) |
| – | Restrictions to the distribution of earnings
(Note 43 to the consolidated financial statements) |
| – | Banking deposits guarantee insurance system
(Note 45 to the consolidated financial statements) |
| – | Compliance with the provisions to act in the
different categories of agent defined by the Argentine Securities Commission (Note 47 to the consolidated financial statements) |
| – | Compliance with the provisions of the Argentine Securities Commission
– Documentation (Note 48 to the consolidated financial statements) |
| – | Trust activities (Note 49
to the consolidated financial statements) |
| – | Mutual funds (Note 50 to the consolidated financial
statements) |
| – | Penalties and administrative proceedings instituted by the BCRA
(Note 51 to the consolidated financial statements) |
| – | Capital management and corporate governance transparency policy
(Note 52 to the consolidated financial statements) |
| – | Subsequent events (Note
53 to the consolidated financial statements) |
3. Significant accounting
policies
Investments in subsidiaries
Subsidiaries are all entities controlled by the
Bank. The Bank controls an entity if it is exposed to, or has rights to, variable returns from its involvement with the entity and has
the ability to affect those returns through its power over the entity. The Bank reassesses whether it has control when there are changes
to one or more of the elements of control.
Ownership interests in subsidiaries are accounted
for using the equity method. They are initially recognized at cost, which includes transaction costs. After initial recognition, the financial
statements include the Bank's share in the profit or loss and OCI of investments accounted for using the equity method, until the date
when the control, significant influence or joint control cease.
The financial statements as of December 31, 2023
of the subsidiaries BBVA Asset Management Argentina S.A.U. and Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (under
liquidation proceedings) were adjusted considering the financial reporting framework set forth by the BCRA in order to present financial
information in constant terms.
4. Cash and deposits
in banks
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Cash |
|
727,271,188 |
|
365,764,542 |
BCRA - Current account |
|
358,900,596 |
|
502,282,567 |
Balances with other local and foreign financial institutions |
|
55,639,908 |
|
53,032,362 |
Cash and cash equivalents for spot purchases or sales to be settled |
|
- |
|
281,050 |
|
|
|
|
|
TOTAL |
|
1,141,811,692 |
|
921,360,521 |
The
balances of Cash and deposits in banks as of December 31, 2021 amounted to 1,322,614,322.
5. Debt securities
at fair value through profit or loss
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Government securities |
|
223,753,533 |
|
33,957,345 |
Private securities - Corporate bonds |
|
2,150,301 |
|
- |
BCRA Liquidity Bills |
|
- |
|
45,513,297 |
|
|
|
|
|
TOTAL |
|
225,903,834 |
|
79,470,642 |
A breakdown of this information is provided in Exhibit A.
6. Derivative instruments
In the ordinary course of business, the Bank carried
out foreign currency forward transactions with daily or upon-maturity settlement of differences, with no delivery of the underlying asset
and interest rate swap transactions and options. These transactions do not qualify as hedging pursuant to IFRS 9 - “Financial Instruments”.
The aforementioned instruments are measured at fair
value and were recognized in the Consolidated Statement of Financial Position in the item “Derivative instruments”. Changes
in fair values were recognized in the Consolidated Statement of Income in “Net income from measurement of financial instruments
at fair value through profit or loss”.
Breakdown is as follows:
Assets
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Debit balances linked to foreign currency forwards pending settlement in pesos |
|
8,536,206 |
|
6,817,417 |
Income from put options taken (1) |
|
1,465,694 |
|
153,156 |
Debit balances linked to interest rate swaps - floating rate for fixed |
|
- |
|
92,737 |
|
|
|
|
|
TOTAL |
|
10,001,900 |
|
7,063,310 |
| (1) | The Entity subscribed for options as set forth in Communication “A”
7546 issued by the BCRA. |
Liabilities
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Credit balances linked to foreign currency forwards pending settlement in pesos |
|
2,145,218 |
|
1,041,154 |
|
|
|
|
|
TOTAL |
|
2,145,218 |
|
1,041,154 |
The notional amounts of the forward transactions
and foreign currency forwards, stated in US Dollars (US$) and in Euros as applicable, as well as the base value of interest rate swaps
and put options taken are reported below:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Foreign currency forwards |
|
|
|
|
|
|
|
|
|
Foreign currency forward purchases - US$ |
|
169,836 |
|
1,165,119 |
|
|
|
|
|
Foreign currency forward sales - US$ |
|
119,093 |
|
1,217,856 |
|
|
|
|
|
Foreign currency forward sales - Euros |
|
5,500 |
|
1,825 |
|
|
|
|
|
Interest rate swaps |
|
|
|
|
|
|
|
|
|
Fixed rate for floating rate (1) |
|
- |
|
1,500,000 |
|
|
|
|
|
Put options |
|
|
|
|
|
|
|
|
|
Put options taken (2) |
|
142,183,107 |
|
4,685,000 |
| (1) | Floating rate: Badlar
rate, interest rate for deposits over one million pesos, for a term of 30 to 35 days. |
7. Repo transactions
Breakdown is as follows:
Reverse repurchase transactions
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Amounts receivable for reverse repurchase transactions of BCRA Liquidity Bills with the BCRA (1) |
|
1,202,421,795 |
|
163,689,844 |
|
|
|
|
|
TOTAL |
|
1,202,421,795 |
|
163,689,844 |
| (1) | As of December 31, 2023 and December 31, 2022,
repurchase transactions involving BCRA liquidity bills fall due on January 2, 2024 and January 2, 2023, respectively. |
Repurchase transactions
No repurchase transactions were accounted for
as of December 31, 2023 and 2022.
8. Other financial
assets
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Measured at amortized cost |
|
|
|
|
|
|
|
|
|
Other receivables |
|
48,797,477 |
|
40,076,157 |
Receivables from sale of ownership interest in Prisma Medios de Pago S.A. (1) |
|
40,474,563 |
|
33,628,764 |
Financial debtors from spot transactions pending settlement |
|
921,900 |
|
14,228,177 |
Non-financial debtors from spot transactions pending settlement |
|
874,585 |
|
273,352 |
Other |
|
127,093 |
|
186,183 |
|
|
|
|
|
|
|
91,195,618 |
|
88,392,633 |
|
|
|
|
|
Allowance for loan losses (Exhibit R) |
|
(1,238,948) |
|
(1,296,931) |
|
|
|
|
|
TOTAL |
|
89,956,670 |
|
87,095,702 |
| (1) | On October 1, 2021, the Bank, together with
the other Class B Shareholders, gave notice of the exercise of the put option and therefore initiated the procedure to sell 49% of the
capital stock in the company Prisma Medios de Pago S.A. |
On March 18, 2022, the transfer of all the remaining
shareholding of the Bank in Prisma Medios de Pago S.A. was consummated for a price of US$ 40,038,122. Such amount will be paid as follows:
(i) 30% in Pesos adjustable by CER (UVA) at an annual nominal rate of 15% and (ii) 70% in US Dollars at an annual nominal rate of 10%
within a term of six years.
9. Loans and other financing
The Bank holds loans and other financing under a
business model intended to collect contractual cash flows. Therefore, the Bank measures loans and other financing at amortized cost. Breakdown
is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Credit cards |
|
702,657,639 |
|
854,924,949 |
Unsecured instruments |
|
318,069,103 |
|
181,250,348 |
Overdrafts |
|
176,515,811 |
|
196,021,914 |
Loans for the prefinancing and financing of exports |
|
153,200,806 |
|
78,079,366 |
Consumer loans |
|
151,461,024 |
|
221,439,467 |
Discounted instruments |
|
145,212,037 |
|
182,199,444 |
Mortgage loans |
|
79,404,563 |
|
119,922,367 |
Other financial institutions |
|
41,049,276 |
|
56,051,940 |
Pledge loans |
|
19,855,199 |
|
27,391,689 |
Receivables from finance leases |
|
10,570,430 |
|
17,325,619 |
Loans to personnel |
|
10,203,982 |
|
14,997,313 |
Instruments purchased |
|
3,015,567 |
|
3,040,149 |
Non-financial government sector |
|
145,208 |
|
4,356 |
BCRA |
|
- |
|
28,132 |
Other financing |
|
128,919,643 |
|
235,837,892 |
|
|
|
|
|
|
|
1,940,280,288 |
|
2,188,514,945 |
|
|
|
|
|
Allowance for loan losses (Exhibit R) |
|
(47,776,619) |
|
(65,105,078) |
|
|
|
|
|
TOTAL |
|
1,892,503,669 |
|
2,123,409,867 |
The Bank entered into finance lease agreements related
to vehicles and machinery and equipment. The following table shows the total gross investment in the finance leases (lease-purchase agreement)
and the current value of the minimum collections to be received thereunder:
|
|
12.31.23 |
|
12.31.22 |
Term |
|
Total investment |
Current value of minimum payments |
|
Total investment |
Current value of minimum payments |
|
|
|
|
|
|
|
Up to 1 year |
|
8,911,796 |
2,520,658 |
|
9,953,296 |
4,053,264 |
From 1 to 2 years
|
|
8,200,581 |
2,578,986 |
|
9,840,093 |
4,956,322 |
From 2 to 3 years
|
|
6,786,874 |
3,081,354 |
|
7,917,097 |
4,797,536 |
From 3 to 4 years
|
|
3,661,321 |
2,194,714 |
|
4,666,061 |
3,306,834 |
From 4 to 5 years
|
|
311,979 |
194,718 |
|
297,302 |
211,663 |
|
|
|
|
|
|
|
TOTAL |
|
27,872,551 |
10,570,430 |
|
32,673,849 |
17,325,619 |
|
|
|
|
|
|
|
Share capital |
|
|
10,074,643 |
|
|
16,857,944 |
Interest accrued |
|
|
495,787 |
|
|
467,675 |
|
|
|
|
|
|
|
TOTAL |
|
|
10,570,430 |
|
|
17,325,619 |
The breakdown of loans and other financing
according to credit performance as per the criteria set forth by the BCRA are presented in Exhibit B. The information on concentration
of loans and other financing is presented in Exhibit C to these separate financial statements. The reconciliation of the information
included in those Exhibits to the carrying amounts is shown below:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Total Exhibit B and C |
|
2,053,354,102 |
|
2,255,950,132 |
Plus: |
|
|
|
|
B.C.R.A. |
|
- |
|
28,132 |
Loans to personnel |
|
10,203,982 |
|
14,997,313 |
Interest and other items accrued receivable from financial assets with credit value impairment |
|
757,808 |
|
637,538 |
|
|
|
|
|
Less: |
|
|
|
|
Allowance for loan losses (Exhibit R) |
|
(47,776,619) |
|
(65,105,078) |
Adjustments for effective interest rate
|
|
(11,098,349) |
|
(12,826,647) |
Corporate bonds and other private securities
|
|
(9,391,406) |
|
(11,781,061) |
Loan commitments |
|
(103,545,849) |
|
(58,490,462) |
|
|
|
|
|
Total Loans and other financing |
|
1,892,503,669 |
|
2,123,409,867 |
Note 42.2 to the consolidated financial statements
contains information on credit risk associated with loans and other financing and allowances measured using the expected credit loss model.
As of December 31, 2023 and 2022, the Bank holds
the loan commitments booked in off- balance sheet accounts according to the financial reporting framework set forth by the BCRA:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Secured loans
|
|
44,437,506 |
|
20,704,593 |
Liabilities related to foreign trade transactions
|
|
38,202,789 |
|
26,389,316 |
Overdrafts and receivables agreed not used
|
|
18,175,641 |
|
6,602,868 |
Guarantees granted
|
|
2,729,913 |
|
4,793,685 |
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
103,545,849 |
|
58,490,462 |
Risks related to the aforementioned loan commitments
are assessed and controlled within the framework of the Bank's credit risks policy.
10. Other debt securities
Breakdown is as follows:
10.1. Financial assets measured
at amortized cost
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Argentine Treasury Bonds in pesos. Maturity 08-23-2025 |
|
49,502,692 |
|
- |
Argentine Treasury Bonds in pesos. Maturity 05-23-2027 |
|
32,406,871 |
|
100,997,240 |
Argentine Treasury Bonds in pesos at 0.7% Badlar Private Rate. Maturity 11-23-2027 |
|
14,771,877 |
|
37,662,724 |
|
|
|
|
|
TOTAL |
|
96,681,440 |
|
138,659,964 |
10.2. Financial assets measured
at fair value through OCI
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Government securities (1) |
|
517,108,866 |
|
391,849,627 |
BCRA Local Bills |
|
69,772,109 |
|
6,619,055 |
BCRA Liquidity Bills |
|
60,435,133 |
|
1,459,978,606 |
Private securities - Corporate bonds |
|
8,959,190 |
|
11,593,436 |
|
|
|
|
|
TOTAL |
|
656,275,298 |
|
1,870,040,724 |
| (1) | In March 2023, the Bank launched a voluntary
debt swap under Section 11, Presidential Decree No. 331/2022 issued by the Ministry of Economy. The securities delivered/received under
such swap were as follows: |
Securities Delivered |
Species |
Nominal values |
ARGENTINE TREASURY BILL IN PESOS AT DISCOUNT. MATURITY APRIL 28, 2023 (LEDES S28A3) |
19,027,714,460 |
ARGENTINE TREASURY BILL IN PESOS ADJUSTED BY CER AT DISCOUNT. MATURITY MAY 19, 2023 (LECER X19Y3) |
7,000,000,000 |
ARGENTINE TREASURY BILL IN PESOS AT DISCOUNT. MATURITY MAY 31, 2023 (LEDES S31Y3)
|
6,840,800,244 |
ARGENTINE TREASURY BILL IN PESOS AT DISCOUNT. MATURITY JUNE 30, 2023 (LEDES S30J3)
|
5,532,343,136 |
Received Securities |
Species |
Nominal values |
ARGENTINE TREASURY BOND IN PESOS ADJUSTED BY CER 3.75%. MATURITY APRIL 14, 2024 (T3X4P)
|
13,237,176,685 |
ARGENTINE TREASURY BOND IN PESOS ADJUSTED BY CER 4%. MATURITY OCTOBER 14, 2024 (T4X4P)
|
17,649,568,913 |
ARGENTINE TREASURY BOND IN PESOS ADJUSTED BY CER 4.25%. MATURITY FEBRUARY 14, 2025 (T2X5P)
|
13,237,176,685 |
In June 2023, the Bank launched a new voluntary
debt swap under Section 11, Presidential Decree No. 331/2022 issued by the Ministry of Economy. The securities delivered/received under
such swap were as follows:
Securities Delivered |
Species |
Nominal values |
ARGENTINE TREASURY BILL IN PESOS ADJUSTED BY CER AT DISCOUNT. MATURITY JUNE 16, 2023 (LECER X16J3) |
2,159,998,000 |
ARGENTINE TREASURY BILL IN PESOS ADJUSTED BY CER AT DISCOUNT. MATURITY JULY 18, 2023 (LECER X18L3) |
35,863,500,000 |
ARGENTINE TREASURY BONDS IN PESOS ADJUSTED BY CER 1.45%. MATURITY AUGUST 13,
2023 (T2X3)
|
3,622,490,577 |
Received Securities |
Species |
Nominal values |
ARGENTINE TREASURY BOND IN PESOS ADJUSTED BY CER 4.25%. MATURITY DECEMBER 13, 2024 (T5X4P)
|
71,442,000,014 |
In addition, the Bank purchased put options from
the BCRA. These options grant the Bank an opportunity to sell (put option) the underlying asset at a price determined by BCRA applicable
regulations. In this transaction, options may be exercised up to the day prior to the maturity date of the underlying asset. As of December
31, 2023, their notional value stood at 142,183,107,297 (see Exhibits A and O).
11. Financial assets
pledged as collateral
As of December 31, 2023 and 2022, the Bank pledged
as collateral the following financial assets:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Guarantee trust - Government securities at fair value through OCI |
(1) |
130,597,058 |
|
52,003,019 |
BCRA - Special guarantee accounts (Note 42.1) |
(2) |
96,926,260 |
|
43,180,603 |
Deposits as collateral |
(3) |
27,961,284 |
|
25,645,083 |
Guarantee trust - USD - Government and private securities at fair value through OCI |
(4) |
6,147,179 |
|
23,017,454 |
|
|
|
|
|
TOTAL |
|
261,631,781 |
|
143,846,159 |
| (1) | Set up as collateral to operate with Rosario Futuros Exchange
(ROFEX), Bolsas y Mercados Argentinos S.A. (BYMA) and Mercado Abierto Electrónico S.A. (MAE) on foreign currency forward transactions
and futures contracts. The trust is composed of Treasury Bonds in pesos adjusted by Cer due 2024, 2025 and 2026 (Species T2X4, T2X5 and
TX26). As of December 31, 2022, the trust was composed of species TX23, T2X4, TX24, X19Y3 and X16J3. |
| (2) | Special guarantee current accounts opened at the BCRA for transactions
related to the automated clearing houses and other similar entities. |
| (3) | Deposits pledged as collateral for activities related to credit
card transactions in the country and abroad and leases. |
| (4) | The trust is composed of dollars in cash, Treasury Bonds (TV24D)
and Private Securities (LUC40, PQCOO and PQCHO) as collateral for activities related to the transactions on MAE and BYMA as of December
31, 2023 and dollars in cash as of December 31, 2022. |
12. Income tax
This tax should be booked using the liability method,
recognizing (as credit or debt) the tax effect of temporary differences between the accounting valuation and the tax valuation of assets
and liabilities, and its subsequent allocation to income or loss for the year in which its reversion occurs, also considering the possibility
of taking advantage of tax losses in the future.
12.1. Current income tax assets
There is no balance for the period/year ended December
31, 2023 and 2022, respectively.
12.2. Current income tax liabilities
The composition of current income tax liabilities
disclosed in the Separate Statement of Financial Position is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Income tax provision |
|
192,549,035 |
|
21,361,192 |
Advances |
|
(1,974,981) |
|
(954,174) |
Collections and withholdings |
|
(64,024) |
|
(56,773) |
|
|
|
|
|
|
|
190,510,030 |
|
20,350,245 |
12.3. Deferred income tax
The composition and evolution of deferred income
tax assets and liabilities is as follows:
Account |
|
Changes recognized through |
12.31.23 |
As of 12.31.22 |
Profit or loss |
|
OCI |
|
Deferred tax asset |
Deferred tax liability |
|
|
|
|
|
|
|
|
Allowance for loan losses |
14,666,030 |
(2,335,689) |
|
- |
|
12,330,341 |
- |
Provisions |
39,282,173 |
(3,676,895) |
|
- |
|
35,605,278 |
- |
Loans and cards commissions |
3,802,371 |
(192,349) |
|
- |
|
3,610,022 |
- |
Organizational expenses and others |
(15,067,625) |
(1,798,500) |
|
- |
|
- |
(16,866,125) |
Property and equipment and miscellaneous assets |
(40,433,730) |
(1,278,322) |
|
- |
|
- |
(41,712,052) |
Debt securities and investments in equity instruments |
(29,668,176) |
112,958,616 |
|
(100,730,775) |
|
- |
(17,440,335) |
Tax inflation adjustment |
6,580,870 |
(5,524,231) |
|
- |
|
1,056,639 |
- |
Other |
134 |
(82) |
|
- |
|
52 |
- |
|
|
|
|
|
|
|
|
Balance |
(20,837,953) |
98,152,548 |
|
(100,730,775) |
|
52,602,332 |
(76,018,512) |
|
|
|
|
|
|
|
|
Offsettings |
|
|
|
|
|
(52,602,332) |
52,602,332 |
|
|
|
|
|
|
|
|
Net deferred liabilities |
|
|
|
|
|
- |
(23,416,180) |
Account |
|
Changes recognized through |
As of 12.31.22 |
As of 12.31.21 |
Profit or loss |
|
OCI |
|
Deferred tax asset |
Deferred tax liability |
|
|
|
|
|
|
|
|
Allowance for loan losses |
16,734,052 |
(2,068,022) |
|
- |
|
14,666,030 |
- |
Provisions |
24,659,461 |
14,622,712 |
|
- |
|
39,282,173 |
- |
Loans and cards commissions |
3,080,597 |
721,774 |
|
- |
|
3,802,371 |
- |
Organizational expenses and others |
(13,282,479) |
(1,785,146) |
|
- |
|
- |
(15,067,625) |
Property and equipment and miscellaneous assets |
(85,489,465) |
45,055,735 |
|
- |
|
- |
(40,433,730) |
Debt securities and investments in equity instruments |
(14,811,146) |
(26,708,478) |
|
11,851,448 |
|
- |
(29,668,176) |
Derivatives |
79,270 |
(79,270) |
|
- |
|
- |
- |
Tax inflation adjustment |
19,228,622 |
(12,647,752) |
|
- |
|
6,580,870 |
- |
Other |
4,950 |
(4,816) |
|
- |
|
134 |
- |
|
|
|
|
|
|
|
|
Balance |
(49,796,138) |
17,106,737 |
|
11,851,448 |
|
64,331,578 |
(85,169,531) |
|
|
|
|
|
|
|
|
Net deferred liabilities |
|
|
|
|
|
- |
(20,837,953) |
12.4. Income tax
Below are the main components of the income tax
expense in the separate financial statements:
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
Current income tax expense |
|
(227,220,753) |
|
|
(24,235,096) |
Income/(loss) from deferred income tax |
|
98,152,548 |
|
|
17,106,737 |
|
|
|
|
|
|
Income tax recognized through profit or loss |
|
(129,068,205) |
|
|
(7,128,359) |
|
|
|
|
|
|
Income tax recognized through OCI |
|
(100,730,775) |
|
|
11,851,448 |
|
|
|
|
|
|
Total income tax |
|
(229,798,980) |
|
|
4,723,089 |
The Bank's effective tax rate calculated on the
income tax recognized in the income statement for the fiscal year ended December 31, 2023 and 2022 was 44% and 4%, respectively.
The income tax expense for the fiscal year ended
December 31, 2022 includes the effect of the claim filed before AFIP, as stated under “Inflation adjustment for tax purposes. Fiscal
year 2021” Note 11.7. to the consolidated financial statements.
The income tax expense for the fiscal year ended
December 31, 2023 includes recoveries from judgments for fiscal years 2013 and 2014, as stated under “Requests for refund. Fiscal
years 2013, 2014 and 2015” Note 11.7. to the consolidated financial statements.
Below is a reconciliation between the tax that would
result from applying the current tax rate on income before income tax and the income tax expense recognized in profit or loss as of December
31, 2023, comparative with the previous year:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Income before income tax |
|
293,610,103 |
|
190,281,641 |
Income tax rate |
|
35 % |
|
35 % |
|
|
|
|
|
Tax on taxable income |
|
102,763,536 |
|
66,598,574 |
|
|
|
|
|
Permanent differences: |
|
|
|
|
Non-taxable income |
|
(4,642,486) |
|
(2,519,637) |
Non-income tax deductible expenses |
|
282,832 |
|
283,653 |
Accounting inflation adjustment |
|
384,228,126 |
|
190,113,184 |
Tax inflation adjustment |
|
(338,548,914) |
|
(247,067,256) |
Other |
|
(15,014,889) |
|
(280,159) |
|
|
|
|
|
Income tax expense |
|
129,068,205 |
|
7,128,359 |
13. Investments
in equity instruments
Breakdown is as follows:
13.1. Investments in equity instruments
through profit or loss
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Private securities - Shares of other non-controlled companies (1) |
|
3,225,936 |
|
2,733,766 |
|
|
|
|
|
TOTAL |
|
3,225,936 |
|
2,733,766 |
(1) See Exhibit A to the consolidated financial
statements.
13.2. Investments in equity instruments
through other comprehensive income
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Compensadora Electrónica S.A. |
|
891,784 |
|
181 |
Mercado Abierto Electrónico S.A. |
|
511,816 |
|
59 |
Banco Latinoamericano de Exportaciones S.A. |
|
404,468 |
|
180,694 |
Seguro de Dépositos S.A. |
|
144,254 |
|
268 |
Other |
|
32,672 |
|
7,099 |
|
|
|
|
|
TOTAL |
|
1,984,994 |
|
188,301 |
14. Investments
in subsidiaries
The Bank has investments in the following entities
over which it has a control or significant influence which are measured by applying the equity method:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Volkswagen Financial Services Compañía Financiera S.A. |
|
11,550,203 |
|
10,743,461 |
BBVA Asset Management Argentina S.A.U. Sociedad Gerente de Fondos Comunes de Inversión |
|
11,393,991 |
|
11,519,953 |
PSA Finance Arg. Cía. Financiera S.A. |
|
6,743,959 |
|
6,467,044 |
BBVA Seguros Argentina S.A. |
|
4,710,065 |
|
3,728,002 |
Rombo Compañía Financiera S.A. |
|
3,077,455 |
|
2,317,504 |
Interbanking S.A. |
|
2,110,363 |
|
2,565,912 |
Play Digital S.A.(1) |
|
1,953,029 |
|
1,515,211 |
Openpay Argentina S.A.(2) |
|
515,320 |
|
671,083 |
Consolidar A.F.J.P. S.A. (undergoing liquidation proceedings) (3) |
|
148,272 |
|
43,153 |
|
|
|
|
|
TOTAL |
|
42,202,657 |
|
39,571,323 |
| (1) | In order to determine the value of this investment,
the accounting information of Play Digital S.A. as of September 30, 2023 has been used. In addition, the significant transactions made
or events occurred between October 1, 2023 and December 31, 2023 were considered. |
| (2) | On April 19, 2023, 29,205 (in nominal values)
shares were subscribed for and paid in in cash. |
| (3) | On November 28, 2023, a contribution in cash
was made for 120,000 (150,605 in restated values). The Bank subscribed 64,667 (81,135 in restated values) and BBVA subscribed 55,333 (69,470
in restated values). |
15. Property and equipment
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Real Estate |
|
222,508,262 |
|
220,508,196 |
Furniture and facilities |
|
38,260,398 |
|
39,654,552 |
Right of use of leased real estate |
|
24,330,316 |
|
18,211,313 |
Machinery and equipment |
|
7,877,577 |
|
9,696,922 |
Construction in progress |
|
4,079,775 |
|
10,183,431 |
Vehicles |
|
1,002,018 |
|
755,390 |
|
|
|
|
|
TOTAL |
|
298,058,346 |
|
299,009,804 |
The breakdown of lease assets and liabilities as
well as interest and foreign exchange differences recognized in profit or loss is disclosed in Note 25 to these separate financial statements.
Based on the reports prepared by the independent appraiser relied upon by the Bank to assess the impairment of its property, the carrying
amount of certain pieces of real estate exceeds its recoverable value. Therefore, such amount should be written down to the recoverable
value.
The impairment of assets recorded under the item
“Property and equipment” is reported below:
Account |
|
Impairment |
|
|
12.31.2023 |
|
12.31.2022 |
|
|
|
|
|
Real Estate - Lavallol |
|
(45,851) |
|
(66,958) |
Real Estate - Monte Grande |
|
(39,227) |
|
(298,230) |
Real Estate - Caleta Olivia, Santa Cruz |
|
- |
|
(74,473) |
Real Estate - Cerro Las Rosas |
|
(72,545) |
|
(155,386) |
Real Estate - Libertador |
|
(581,844) |
|
(1,091,829) |
Real Estate - Store 1 Puerto Madero |
|
(299,904) |
|
(412,880) |
Real Estate - Store 5 Puerto Madero |
|
(220,169) |
|
(257,704) |
Real Estate - Mar del Plata |
|
(70,756) |
|
(30,231) |
Real Estate - Bahía Blanca |
|
(14,750) |
|
(32,511) |
Real Estate - La Plata |
|
(41,511) |
|
- |
Real Estate - Balvanera |
|
(715,099) |
|
- |
|
|
|
|
|
TOTAL |
|
(2,101,656) |
|
(2,420,202) |
The changes in this item for the years 2023 and
2022 are reported in Exhibit F.
16. Intangible assets
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Own systems development expenses |
|
32,918,773 |
|
29,740,727 |
|
|
|
|
|
TOTAL |
|
32,918,773 |
|
29,740,727 |
The changes in this item for the years 2023 and
2022 are reported in Exhibit “G”.
17. Other non-financial assets
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Investment properties |
|
60,152,864 |
|
61,464,170 |
Prepayments |
|
12,132,413 |
|
10,888,681 |
Advances to personnel |
|
8,507,271 |
|
4,972,783 |
Tax advances |
|
7,510,240 |
|
7,845,654 |
Advances to suppliers of goods |
|
6,602,413 |
|
2,805,346 |
Other miscellaneous assets |
|
749,737 |
|
810,934 |
Assets acquired as security for loans |
|
56,177 |
|
59,161 |
Other |
|
7,798,499 |
|
762,730 |
|
|
|
|
|
TOTAL |
|
103,509,614 |
|
89,609,459 |
Investment properties include pieces of real estate
leased to third parties. The average term of lease agreements is 6 years. Subsequent renewals are negotiated with the lessee. The Group
has classified these leases as operating leases, since these arrangements do not substantially transfer all risks and benefits inherent
to the ownership of the assets. The rental income is recognized under “Other operating income” on a straight-line basis during
the term of the lease.
The changes in investment property for the years
2023 and 2022 are reported in Exhibit F.
The impairment of assets booked in Investment properties
under non-financial assets is as follows:
Account |
|
Impairment |
|
|
12.31.2023 |
|
12.31.2022 |
|
|
|
|
|
Leased Real Estate - Viamonte |
|
(238,314) |
|
- |
|
|
|
|
|
TOTAL |
|
(238,314) |
|
- |
|
|
|
|
|
18. Non-current assets held for
sale
It includes pieces of real estate located in the
Argentine Republic, which the Bank’s Board of Directors agreed to sell in the short term. Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Real Estate held for sale - Fisherton |
|
478,476 |
|
453,724 |
Real Estate held for sale - Bernal |
|
92,503 |
|
92,503 |
Real Estate held for sale - Mendoza |
|
155,915 |
|
154,682 |
Real Estate held for sale - Villa Lynch |
|
125,301 |
|
- |
|
|
|
|
|
TOTAL |
|
852,195 |
|
700,909 |
For further information see note 2.3.11 of Significant
accounting policies to the consolidated financial statements.
Based on the reports prepared by the independent
appraiser relied upon by the Bank to assess the impairment of its property as of the end of the previous fiscal year, the carrying amount
of certain pieces of real estate exceeds its recoverable value. Therefore, such amount should be written down to the recoverable value.
The impairment of non-current assets held for sale
is as follows:
Account |
|
Impairment |
|
|
12.31.2023 |
|
12.31.2022 |
|
|
|
|
|
Real Estate held for sale - Fisherton |
|
(247,694) |
|
(272,440) |
Real Estate held for sale - Mendoza |
|
- |
|
(1,233) |
|
|
|
|
|
TOTAL |
|
(247,694) |
|
(273,673) |
19. Deposits
The information on concentration of deposits is
disclosed in Exhibit H. Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Non-financial Government sector |
|
34,033,530 |
|
30,144,496 |
Financial sector |
|
15,113,032 |
|
1,894,898 |
Non-financial Private Sector and Residents Abroad |
|
3,595,039,987 |
|
4,041,361,451 |
Savings accounts |
|
1,720,509,443 |
|
1,554,277,221 |
Checking accounts |
|
913,663,125 |
|
789,347,195 |
Time deposits |
|
751,907,870 |
|
1,272,590,788 |
Investment accounts |
|
182,126,911 |
|
392,200,392 |
Other |
|
26,832,638 |
|
32,945,855 |
|
|
|
|
|
TOTAL |
|
3,644,186,549 |
|
4,073,400,845 |
20. Liabilities at fair value
through profit or loss
Breakdown is as follows:
|
|
|
|
|
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Liabilities for government securities transactions |
|
10,330,335 |
|
- |
|
|
|
|
|
TOTAL |
|
10,330,335 |
|
- |
21. Other financial liabilities
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Obligations from financing of purchases |
|
281,206,479 |
|
257,172,322 |
Funds collected under AFIP’s instructions |
|
73,877,385 |
|
14,575,775 |
Collections and other transactions on behalf of third parties |
|
40,802,915 |
|
26,246,841 |
Lease liabilities (Note 25) |
|
23,502,661 |
|
12,830,971 |
Payment orders pending credit |
|
14,300,578 |
|
20,326,913 |
Receivables from spot purchases pending settlement |
|
768,640 |
|
12,153,944 |
Credit balance for spot sales pending settlement |
|
340,320 |
|
8,273,819 |
Commissions accrued payable |
|
12,852 |
|
127,187 |
Other |
|
8,936,091 |
|
11,732,778 |
|
|
|
|
|
TOTAL |
|
443,747,921 |
|
363,440,550 |
22. Financing received from the
BCRA and other financial institutions
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Foreign financial institutions |
|
2,672,067 |
|
1,742,790 |
Local financial institutions |
|
848,409 |
|
7,442,440 |
BCRA |
|
109,327 |
|
274,027 |
|
|
|
|
|
TOTAL |
|
3,629,803 |
|
9,459,257 |
23. Corporate bonds issued
No transactions were recorded for the fiscal years
ended December 31, 2023 and 2022.
24. Other non-financial liabilities
Breakdown is as follows:
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Miscellaneous creditors |
|
124,483,897 |
|
114,252,262 |
Short-term personnel benefits |
|
60,110,568 |
|
53,295,241 |
Advances collected |
|
49,301,721 |
|
61,132,584 |
Other collections and withholdings |
|
41,913,104 |
|
54,422,599 |
Other taxes payable |
|
32,336,434 |
|
20,778,487 |
Long-term personnel benefits |
|
3,188,821 |
|
2,848,918 |
For contract liabilities |
|
1,703,110 |
|
1,400,224 |
Termination benefits payable |
|
1,161,537 |
|
2,794,954 |
Social security payment orders pending settlement |
|
370,937 |
|
955,007 |
Dividends payable (1) |
|
- |
|
46,196,400 |
Other |
|
640,882 |
|
477,522 |
|
|
|
|
|
TOTAL |
|
315,211,011 |
|
358,554,198 |
| (1) | See Note 43 to the consolidated financial statements. |
25. Leases
The Bank as lessee
Below is a detail of the amounts related to
the rights of use under leases and lease liabilities in force as of December 31, 2023 and 2022:
Rights of use under leases
The changes in this item for the years 2023 and
2022 are reported in Exhibit F.
Lease liabilities
Future minimum payments for lease agreements are
as follows:
|
|
In foreign currency |
|
In local currency |
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
|
|
|
|
Up to one year |
|
1,132,081 |
|
84,529 |
|
1,216,610 |
|
942,747 |
|
|
|
|
|
|
|
|
|
From 1 to 5 years |
|
16,889,173 |
|
689,136 |
|
17,578,309 |
|
9,830,238 |
|
|
|
|
|
|
|
|
|
More than 5 years |
|
4,495,220 |
|
212,522 |
|
4,707,742 |
|
2,057,986 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,502,661 |
|
12,830,971 |
Interest and exchange rate difference
recognized in profit or loss
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Other operating expenses |
|
|
|
|
|
|
|
|
|
Interest on lease liabilities (Note 37) |
|
(1,701,938) |
|
(1,929,766) |
|
|
|
|
|
Exchange rate difference |
|
|
|
|
|
|
|
|
|
Exchange rate difference for finance lease (loss) |
|
(25,858,718) |
|
(12,878,529) |
26. Interest income
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
Interest on government securities |
|
|
1,148,109,417 |
|
|
798,612,117 |
Premiums on reverse repurchase agreements |
|
|
388,218,226 |
|
|
99,209,289 |
Stabilization Coefficient (CER) clause adjustments |
|
|
377,925,199 |
|
|
255,612,556 |
Interest on instruments |
|
|
332,571,766 |
|
|
123,306,207 |
Interest on credit card loans |
|
|
280,546,581 |
|
|
194,999,904 |
Interest on overdrafts |
|
|
175,988,876 |
|
|
89,605,351 |
Interest on consumer loans |
|
|
130,268,098 |
|
|
99,886,476 |
Acquisition Value Unit (UVA) clause adjustments |
|
|
110,684,037 |
|
|
96,090,305 |
Interest on other loans |
|
|
76,199,576 |
|
|
84,309,258 |
Interest on loans to the financial sector |
|
|
32,960,318 |
|
|
24,945,489 |
Interest on pledge loans |
|
|
14,131,503 |
|
|
8,600,873 |
Interest on finance leases |
|
|
7,985,327 |
|
|
4,968,452 |
Interest on mortgage loans |
|
|
6,461,673 |
|
|
9,474,404 |
Interest on private securities |
|
|
3,463,339 |
|
|
2,064,035 |
Interest on loans for the prefinancing and financing of exports |
|
|
2,404,576 |
|
|
2,260,264 |
Other |
|
|
2,284,053 |
|
|
1,601,918 |
|
|
|
|
|
|
|
TOTAL |
|
|
3,090,202,565 |
|
|
1,895,546,898 |
27. Interest expense
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
Time deposits |
|
|
1,149,261,030 |
|
|
662,442,592 |
Checking accounts deposits |
|
|
315,022,380 |
|
|
123,516,353 |
Acquisition Value Unit (UVA) clause adjustments |
|
|
42,734,378 |
|
|
78,198,789 |
Savings accounts deposits |
|
|
7,156,496 |
|
|
4,995,724 |
Interfinancial loans received |
|
|
2,095,795 |
|
|
1,663,480 |
Other liabilities from financial transactions |
|
|
1,033,780 |
|
|
803,969 |
Premiums on reverse repurchase transactions |
|
|
24,987 |
|
|
83,678 |
Other |
|
|
13,162 |
|
|
19,379 |
|
|
|
|
|
|
|
TOTAL |
|
|
1,517,342,008 |
|
|
871,723,964 |
28. Commission income
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
From credit cards |
|
|
117,069,255 |
|
|
103,133,791 |
Linked to liabilities |
|
|
84,386,188 |
|
|
105,146,381 |
From foreign trade and foreign currency transactions |
|
|
10,835,312 |
|
|
10,966,990 |
From insurance |
|
|
9,635,209 |
|
|
10,964,732 |
Linked to securities |
|
|
6,693,634 |
|
|
2,826,789 |
Linked to loans |
|
|
3,990,937 |
|
|
2,856,588 |
Linked to loan commitments |
|
|
407,453 |
|
|
- |
From guarantees granted |
|
|
105,462 |
|
|
11,067 |
|
|
|
|
|
|
|
TOTAL |
|
|
233,123,450 |
|
|
235,906,338 |
29. Commission
expenses
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
For credit and debit cards |
|
|
68,177,734 |
|
|
78,498,950 |
For foreign trade transactions |
|
|
18,507,530 |
|
|
3,068,814 |
For payment of salaries |
|
|
11,377,644 |
|
|
7,949,763 |
For new channels |
|
|
6,040,571 |
|
|
4,035,490 |
For data processing |
|
|
4,380,614 |
|
|
4,764,409 |
For advertising campaigns |
|
|
1,013,711 |
|
|
805,301 |
For digital sales services |
|
|
260,968 |
|
|
186,930 |
Linked to transactions with securities |
|
|
67,420 |
|
|
48,894 |
For promotions |
|
|
12,280 |
|
|
— |
Other commission expenses |
|
|
8,171,973 |
|
|
7,879,008 |
|
|
|
|
|
|
|
TOTAL |
|
|
118,010,445 |
|
|
107,237,559 |
30. Net income (loss) from measurement
of financial instruments at fair value through profit or loss
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
Income from foreign currency forward transactions |
|
|
23,533,993 |
|
|
4,646,318 |
Income from corporate bonds |
|
|
1,373,985 |
|
|
61,172 |
Income/(loss) from private securities |
|
|
571,455 |
|
|
(23,051) |
Income from sale or write-off of financial assets(1) |
|
|
- |
|
|
13,666,592 |
Income/(loss) from interest rate swaps |
|
|
(177,777) |
|
|
314,816 |
Loss from put options taken |
|
|
(522,183) |
|
|
(107,924) |
Income/(loss) from government securities |
|
|
(52,448,606) |
|
|
33,256,761 |
Other |
|
|
171 |
|
|
(16,442) |
|
|
|
|
|
|
|
TOTAL |
|
|
(27,668,962) |
|
|
51,798,242 |
| (1) | Corresponds to the sale of 49% of Prisma Medios
de Pago S.A.’s capital stock. On March 18, 2022 the transfer of all the remaining shareholding of the Bank in such company was consummated. |
31. Net income (loss) from write-down
of assets at amortized cost and at fair value through OCI
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
Income from sale of government securities |
|
|
33,186,455 |
|
|
676,393 |
Income from sale of private securities |
|
|
7,404,167 |
|
|
226,523 |
|
|
|
|
|
|
|
TOTAL |
|
|
40,590,622 |
|
|
902,916 |
32. Foreign exchange and gold
gains/(losses)
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
Conversion of foreign currency assets and liabilities into pesos |
|
|
171,418,523 |
|
|
(13,597,401) |
Income from purchase-sale of foreign currency |
|
|
39,575,648 |
|
|
38,908,589 |
|
|
|
|
|
|
|
TOTAL |
|
|
210,994,171 |
|
|
25,311,188 |
33. Other operating income
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
Adjustments and interest on miscellaneous receivables |
|
|
27,530,770 |
|
|
21,267,898 |
Rental of safe deposit boxes |
|
|
8,069,353 |
|
|
9,109,074 |
Loans recovered |
|
|
6,768,710 |
|
|
10,421,911 |
Debit and credit card commissions |
|
|
4,706,692 |
|
|
4,740,075 |
Rent |
|
|
2,445,550 |
|
|
1,954,638 |
Punitive interest |
|
|
2,475,938 |
|
|
1,376,862 |
Fees expenses recovered |
|
|
2,339,878 |
|
|
2,569,661 |
Commission from syndicated transactions |
|
|
930,941 |
|
|
821,453 |
Allowances reversed |
|
|
1,467 |
|
|
709,547 |
Income from sale of non-current assets held for sale |
|
|
- |
|
|
1,420,141 |
Income from asset sale in equity instruments (1) |
|
- |
|
|
4,719,308 |
Other operating income |
|
|
10,996,956 |
|
|
6,334,252 |
|
|
|
|
|
|
|
TOTAL |
|
|
66,266,255 |
|
|
65,444,820 |
| (1) | Corresponds to the sale of 49% of Prisma Medios
de Pago S.A.’s capital stock. On March 18, 2022 the transfer of all the remaining shareholding of the Bank in such company was consummated. |
34. Personnel benefits
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
Salaries |
|
|
121,862,099 |
|
|
113,663,274 |
Other short-term personnel benefits |
|
|
66,174,342 |
|
|
43,038,362 |
Social security withholdings and collections
|
|
|
40,392,948 |
|
|
35,954,195 |
Personnel compensation and bonuses |
|
|
7,150,612 |
|
|
8,514,897 |
Personnel services |
|
|
5,017,069 |
|
|
4,595,770 |
Termination personnel benefits (Exhibit J) |
|
|
477,840 |
|
|
698,306 |
Other long-term personnel benefits |
|
|
3,142,882 |
|
|
1,188,228 |
|
|
|
|
|
|
|
TOTAL |
|
|
244,217,792 |
|
|
207,653,032 |
|
|
|
|
|
|
|
35. Administrative expenses
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
Taxes |
|
|
51,370,513 |
|
|
44,116,891 |
Rent |
|
|
33,984,684 |
|
|
32,667,422 |
Contracted administrative services |
|
|
30,302,179 |
|
|
18,682,028 |
IT |
|
|
28,885,032 |
|
|
17,810,844 |
Maintenance and repair costs |
|
|
21,107,960 |
|
|
20,507,726 |
Armored transportation services |
|
|
20,868,537 |
|
|
22,656,053 |
Advertising |
|
|
13,521,108 |
|
|
10,711,002 |
Electricity and communications |
|
|
8,350,789 |
|
|
7,683,231 |
Documents distribution |
|
|
6,655,310 |
|
|
6,844,077 |
Other fees |
|
|
6,357,111 |
|
|
6,029,679 |
Security services |
|
|
5,838,983 |
|
|
5,602,508 |
Trade reports |
|
|
4,521,271 |
|
|
3,885,508 |
Insurance |
|
|
1,923,111 |
|
|
1,990,391 |
Representation and travel expenses |
|
|
1,650,886 |
|
|
1,366,383 |
Stationery and supplies |
|
|
373,632 |
|
|
263,452 |
Fees to Bank Directors and Supervisory Committee |
|
|
276,074 |
|
|
306,629 |
Other administrative expenses |
|
|
10,193,962 |
|
|
7,039,436 |
|
|
|
|
|
|
|
TOTAL |
|
|
246,181,142 |
|
|
208,163,260 |
36. Asset
depreciation and impairment
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
Property and equipment |
|
|
20,606,246 |
|
|
22,624,803 |
Intangible assets |
|
|
3,572,966 |
|
|
1,947,295 |
Right of use of leased real estate |
|
|
2,295,494 |
|
|
6,163,534 |
Depreciation of other assets |
|
|
1,077,895 |
|
|
949,484 |
Loss from sale or impairment of property, plant and equipment (Note 15) |
|
|
797,137 |
|
|
2,191,553 |
|
|
|
|
|
|
|
TOTAL |
|
|
28,349,738 |
|
|
33,876,669 |
37. Other operating expenses
Breakdown is as follows:
|
|
|
12.31.23 |
|
|
12.31.22 |
|
|
|
|
|
|
|
Turnover tax |
|
|
191,978,154 |
|
|
119,981,728 |
Other allowances (Exhibit J) |
|
|
20,606,604 |
|
|
18,013,490 |
Initial recognition of loans |
|
|
11,671,075 |
|
|
13,099,892 |
Contribution to the Deposit Guarantee Fund |
|
|
5,703,124 |
|
|
6,317,147 |
Claims |
|
|
2,544,611 |
|
|
4,604,462 |
Interest on lease liabilities (Note 25) |
|
|
1,701,938 |
|
|
1,929,766 |
Loss from sale or impairment of investment property and other non-financial assets |
|
|
238,314 |
|
|
37,562 |
Reorganization expenses (Exhibit J) |
|
|
- |
|
|
7,391,880 |
Other operating expenses |
|
|
17,222,413 |
|
|
11,178,833 |
|
|
|
|
|
|
|
TOTAL |
|
|
251,666,233 |
|
|
182,554,760 |
38. Restricted assets
As of December 31, 2023 and 2022, the Bank has
the following restricted assets:
| a) | The Entity applied the following assets as
security for loans agreed under the Global Credit Program for micro, small and medium-sized enterprises granted by the Inter-American
Development Bank (IDB). |
|
12.31.23 |
12.31.22 |
|
|
|
Argentine Treasury Bonds adjusted by CER. Maturity 2024 |
12,799 |
128,642 |
|
|
|
Total |
12,799 |
128,642 |
| b) | Also, the Entity has accounts, deposits, repo
transactions and trusts applied as guarantee for activities related to credit card transactions, with automated clearing houses, forward
transactions, foreign currency futures, court proceedings and leases in the amount of 261,631,781 and 143,846,159 as of December 31, 2023
and 2022, respectively (see Note 11 to these separate financial statements). |
39. Minimum cash and minimum
capital requirements
39.1. Minimum cash requirements
The BCRA establishes different prudential regulations
to be observed by financial institutions, mainly regarding solvency levels, liquidity and credit assistance levels.
Minimum cash regulations set forth an obligation
to keep liquid assets in relation to deposits and other obligations recorded for each period. The items included for the purpose of meeting
that requirement are detailed below:
Accounts |
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Balances at the BCRA |
|
|
|
|
|
|
|
|
|
BCRA - Current account not restricted |
|
358,900,596 |
|
502,282,567 |
BCRA - Special guarantee accounts - restricted (Note 11) |
|
96,926,260 |
|
43,180,603 |
|
|
|
|
|
|
|
455,826,856 |
|
545,463,170 |
|
|
|
|
|
Argentine Treasury Bonds in pesos at 0.7% Badlar Private Rate. Maturity 11-23-2027 |
|
14,771,877 |
|
37,662,724 |
Argentine Treasury Bonds in pesos. Maturity 05-23-2027 |
|
32,406,871 |
|
100,997,240 |
Argentine Treasury Bonds in pesos. Maturity 08-23-2025 |
|
49,502,692 |
|
- |
Argentine Treasury Bonds in pesos adjusted by 4.25% CER. Maturity 12-13-2024 |
|
218,925,057 |
|
- |
Argentine Treasury Bonds in pesos adjusted by 4% CER. Maturity 10-14-2024 |
|
189,705,541 |
|
- |
Argentine Treasury Bonds in pesos adjusted by 4.25% CER. Maturity 02-14-2025 |
|
56,074,420 |
|
- |
Argentine Treasury Bonds in pesos adjusted by 2% CER. Maturity 11-09-2026 |
|
216,222,852 |
|
- |
|
|
|
|
|
Other debt securities |
|
791,192 |
|
57,721,176 |
|
|
|
|
|
BCRA Liquidity Bills |
|
60,435,133 |
|
1,505,491,903 |
|
|
|
|
|
TOTAL |
|
1,294,662,491 |
|
2,247,336,213 |
39.2. Minimum capital requirement
The regulatory breakdown of minimum capital requirements is as follows
at the above-mentioned dates:
Minimum capital requirement |
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
Credit risk |
|
216,743,960 |
|
208,962,487 |
Operational risk |
|
87,512,610 |
|
85,431,482 |
Market risk |
|
6,508,755 |
|
4,592,046 |
Non-compliance(1) |
|
21,184,535 |
|
- |
|
|
|
|
|
Paid-in |
|
1,122,664,202 |
|
942,772,087 |
|
|
|
|
|
Surplus |
|
790,714,342 |
|
643,786,072 |
(1) The increase observed in
the minimum capital requirement for credit risk is due to the non-compliance with the maximum limit established by the BCRA for the financing
to the non-financial government sector during 15 days of December 2023. According to the provisions of the regulations, this non-compliance
causes an increase in the minimum capital requirement for credit risk for an amount equivalent to 100% of the surplus, as from the month
in which the non-compliance occurs and for as long as it continues. In the case of credit ratios, the computation of the deviation will
be made on the basis of the monthly average of daily surpluses. As of the date of these Financial Statements, the aforementioned situation
had been remedied.
40. Accounting principles –
Explanation added for translations into English
These separate condensed interim financial statements
are presented in accordance with the financial reporting framework set forth by the BCRA, as mentioned in note 2. These accounting standards
may not conform to accounting principles generally accepted in other countries.
EXHIBIT A
BREAKDOWN OF GOVERNMENT AND PRIVATE SECURITIES
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
HOLDING |
|
POSITION |
|
|
|
|
|
|
|
|
|
Account |
Identification |
Fair
value |
Fair value level |
Accounting balance |
Accounting balance |
|
Position with no options |
Options |
Final position |
|
|
|
12.31.23 |
12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
Government Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Treasury Bills adjusted by CER. Maturity 01-18-2024 |
9221 |
205,177 |
1 |
205,177 |
- |
|
205,177 |
- |
205,177 |
Argentine Treasury Bonds in pesos at 16%. Maturity 10-17-2023 |
5319 |
- |
2 |
- |
21,758,711 |
|
- |
- |
- |
Treasury Bills adjusted by CER. Maturity 02-17-2023 |
9111 |
- |
1 |
- |
1,237,150 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Subtotal Government Securities - In pesos |
|
205,177 |
|
205,177 |
22,995,861 |
|
205,177 |
- |
205,177 |
|
|
|
|
|
|
|
|
|
|
Government Securities - In foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Argentine Bond in dual currency. Maturity 06-30-2024 |
9230 |
216,222,852 |
1 |
216,222,852 |
- |
|
216,222,852 |
(426,095) |
215,796,757 |
Argentine Bond in dual currency. Maturity 02-28-2024 |
9156 |
7,269,735 |
1 |
7,269,735 |
- |
|
7,269,735 |
- |
7,269,735 |
GD30 Bond Foreign Law USC Step Up. Maturity 07-09-2030 |
81086 |
28,433 |
1 |
28,433 |
- |
|
28,433 |
- |
28,433 |
AL30 Bond Local law. US$ Step Up. Maturity 07-09-2030 |
5921 |
27,336 |
1 |
27,336 |
- |
|
27,336 |
- |
27,336 |
Argentine Bond in dual currency. Maturity 07-31-2023 |
9146 |
- |
1 |
- |
10,961,484 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Subtotal Government Securities - In foreign currency |
|
223,548,356 |
|
223,548,356 |
10,961,484 |
|
223,548,356 |
(426,095) |
223,122,261 |
|
|
|
|
|
|
|
|
|
|
BCRA Bills - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BCRA Liquidity Bills in pesos. Maturity 01-12-2023 |
13930 |
- |
2 |
- |
45,513,297 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Subtotal BCRA Bills - In pesos |
|
- |
|
- |
45,513,297 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Private Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bond New San S.A. Series 18 in Pesos BADLAR Private + 300 bps. Maturity 10-17-2024 |
57449 |
263,784 |
3 |
263,784 |
- |
|
263,784 |
- |
263,784 |
Corporate bond New San S.A. Series 19 in Pesos Monetary policy rate. Maturity 10-17-2024 |
57450 |
234,746 |
3 |
234,746 |
- |
|
234,746 |
- |
234,746 |
Corporate bond Toyota Cia Financiera Series 32 in Pesos. Maturity 02-09-2025 |
57287 |
179 |
3 |
179 |
- |
|
179 |
- |
179 |
|
|
|
|
|
|
|
|
|
|
Subtotal Private Securities - In pesos |
|
498,709 |
|
498,709 |
- |
|
498,709 |
- |
498,709 |
|
|
|
|
|
|
|
|
|
|
Private Securities - In foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bond Central Puerto Series A in USD. Maturity 03-14-2026 |
57363 |
1,651,592 |
2 |
1,651,592 |
- |
|
1,651,592 |
- |
1,651,592 |
|
|
|
|
|
|
|
|
|
|
Subtotal Private Securities - In foreign currency |
|
1,651,592 |
|
1,651,592 |
- |
|
1,651,592 |
- |
1,651,592 |
|
|
|
|
|
|
|
|
|
|
TOTAL DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS |
|
225,903,834 |
|
225,903,834 |
79,470,642 |
|
225,903,834 |
(426,095) |
225,477,739 |
|
|
|
|
|
|
|
|
|
|
EXHIBIT A
(Continued)
BREAKDOWN OF GOVERNMENT AND PRIVATE SECURITIES
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
|
|
|
|
|
|
|
|
|
HOLDING |
|
POSITION |
|
|
|
|
|
|
|
|
|
|
Account |
|
|
|
|
|
|
|
|
|
|
Identification |
Fair
value |
Fair value level |
Accounting balance
12.31.23 |
Accounting balance
12.31.22 |
|
Position with no options |
Options |
Final position |
|
|
|
|
|
|
|
|
|
|
OTHER DEBT SECURITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEASURED AT FAIR VALUE THROUGH OCI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
Government Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Argentine Treasury Bonds in pesos adjusted by 4.25% CER. Maturity 12-13-2024 |
9200 |
218,925,057 |
1 |
218,925,057 |
- |
|
218,925,057 |
(494,268) |
218,430,789 |
Argentine Treasury Bonds in pesos adjusted by 4% CER. Maturity 10-14-2024 |
9179 |
189,705,541 |
1 |
189,705,541 |
- |
|
189,705,541 |
(438,405) |
189,267,136 |
Argentine Treasury Bonds in pesos adjusted by 4.25% CER. Maturity 02-14-2025 |
9180 |
56,074,420 |
1 |
56,074,420 |
- |
|
56,074,420 |
(105,801) |
55,968,619 |
Treasury Bonds in pesos adjusted by 1.55% CER. Maturity 07-26-2024 |
5405 |
51,382,569 |
1 |
51,382,569 |
79,834,269 |
|
51,382,569 |
- |
51,382,569 |
Treasury Bonds in pesos adjusted by 3.75% CER. Maturity 04-14-2024 |
9178 |
791,192 |
1 |
791,192 |
- |
|
791,192 |
(1,125) |
790,067 |
Treasury Bonds in Pesos adjusted by 1.50% CER. Maturity 03-25-2024 |
5493 |
166,382 |
1 |
166,382 |
77,406,739 |
|
166,382 |
- |
166,382 |
Argentine Treasury Bonds in pesos adjusted by 2% CER. Maturity 11-09-2026 |
5925 |
33,984 |
1 |
33,984 |
25,733,504 |
|
33,984 |
- |
33,984 |
Treasury Bonds in pesos adjusted by 1.45% CER. Maturity 08-13-2023 |
5497 |
- |
2 |
- |
64,755,218 |
|
- |
- |
- |
Treasury Bills adjusted by CER. Maturity 05-19-2023 |
9127 |
- |
1 |
- |
41,147,674 |
|
- |
- |
- |
Treasury Bills at discount. ARS 03-31-2023 |
9164 |
- |
2 |
- |
28,272,875 |
|
- |
- |
- |
Treasury Bonds in pesos adjusted by 1.40% CER. Maturity 03-25-2023 |
5492/81012 |
- |
1 |
- |
27,186,318 |
|
- |
- |
- |
Treasury Bills at discount. ARS 04-28-2023 |
9142 |
- |
2 |
- |
24,896,271 |
|
- |
- |
- |
Treasury Bills adjusted by CER. Maturity 06-16-2023 |
9152 |
- |
1 |
- |
15,154,084 |
|
- |
- |
- |
Treasury Bills at discount. ARS 05-31-2023 |
9171 |
- |
2 |
- |
4,552,030 |
|
- |
- |
- |
Treasury Bills adjusted by CER. Maturity 04-21-2023 |
9118 |
- |
1 |
- |
2,075,455 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Subtotal Government Securities - In pesos |
|
517,079,145 |
|
517,079,145 |
391,014,437 |
|
517,079,145 |
(1,039,599) |
516,039,546 |
|
|
|
|
|
|
|
|
|
|
Government Securities - In foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollar-linked Argentine Treasury Bond 0.40%. Maturity 04-30-2024 |
9120 |
29,721 |
1 |
29,721 |
- |
|
29,721 |
- |
29,721 |
Dollar-linked Argentine Treasury Bonds. Maturity 04-28-2023 |
5928 |
- |
1 |
- |
835,190 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Subtotal Government Securities - In foreign currency |
|
29,721 |
|
29,721 |
835,190 |
|
29,721 |
- |
29,721 |
|
|
|
|
|
|
|
|
|
|
BCRA Bills - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BCRA Liquidity Bills in pesos. Maturity 01-11-2024 |
14085 |
55,990,918 |
2 |
55,990,918 |
- |
|
55,990,918 |
- |
55,990,918 |
BCRA Liquidity Bills in pesos. Maturity 01-09-2024 |
14084 |
4,444,215 |
2 |
4,444,215 |
- |
|
4,444,215 |
- |
4,444,215 |
BCRA Liquidity Bills in pesos. Maturity 01-26-2023 |
13934 |
- |
2 |
- |
516,342,664 |
|
- |
- |
- |
BCRA Liquidity Bills in pesos. Maturity 01-03-2023 |
13927 |
- |
2 |
- |
185,356,395 |
|
- |
- |
- |
BCRA Liquidity Bills in pesos. Maturity 01-05-2023 |
13928 |
- |
2 |
- |
184,617,055 |
|
- |
- |
- |
BCRA Liquidity Bills in pesos. Maturity 01-10-2023 |
13929 |
- |
2 |
- |
152,318,435 |
|
- |
- |
- |
BCRA Liquidity Bills in pesos. Maturity 01-17-2023 |
13931 |
- |
2 |
- |
150,203,008 |
|
- |
- |
- |
BCRA Liquidity Bills in pesos. Maturity 01-12-2023 |
13930 |
- |
2 |
- |
136,539,892 |
|
- |
- |
- |
BCRA Liquidity Bills in pesos. Maturity 01-19-2023 |
13932 |
- |
2 |
- |
134,601,157 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Subtotal BCRA Bills - In pesos |
|
60,435,133 |
|
60,435,133 |
1,459,978,606 |
|
60,435,133 |
- |
60,435,133 |
EXHIBIT A
(Continued)
BREAKDOWN OF GOVERNMENT AND PRIVATE SECURITIES
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
HOLDING |
|
POSITION |
|
|
Fair |
Fair |
Accounting |
Accounting |
|
Position with no |
|
|
Account |
Identification |
value |
value |
balance |
balance |
|
options |
Options |
Final position |
|
|
|
level |
12.31.23 |
12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER DEBT SECURITIES (Continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BCRA Bills - In foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local BCRA Bills in USD. Maturity 11-16-2024 |
12089 |
44,709,127 |
2 |
44,709,127 |
- |
|
44,709,127 |
- |
44,709,127 |
Local BCRA Bills in USD. Maturity 11-20-2024 |
12090 |
16,978,149 |
2 |
16,978,149 |
- |
|
16,978,149 |
- |
16,978,149 |
Local BCRA Bills in USD. Maturity 11-23-2024 |
12093 |
6,467,866 |
2 |
6,467,866 |
- |
|
6,467,866 |
- |
6,467,866 |
Local BCRA Bills in USD. Maturity 11-27-2024 |
12095 |
1,616,967 |
2 |
1,616,967 |
- |
|
1,616,967 |
- |
1,616,967 |
Local BCRA Bills in USD. Maturity 10-03-2023 |
11815 |
- |
2 |
- |
1,654,764 |
|
- |
- |
- |
Local BCRA Bills in USD. Maturity 10-04-2023 |
11816 |
- |
2 |
- |
1,654,764 |
|
- |
- |
- |
Local BCRA Bills in USD. Maturity 09-29-2023 |
11808 |
- |
2 |
- |
1,654,764 |
|
- |
- |
- |
Local BCRA Bills in USD. Maturity 10-05-2023 |
11817 |
- |
2 |
- |
1,103,176 |
|
- |
- |
- |
Local BCRA Bills in USD. Maturity 09-23-2023 |
11804 |
- |
2 |
- |
551,587 |
|
- |
- |
- |
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal BCRA Bills - In foreign currency |
|
69,772,109 |
|
69,772,109 |
6,619,055 |
|
69,772,109 |
- |
69,772,109 |
|
|
|
|
|
|
|
|
|
|
Private Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Bond Arcor Series 17 adjusted by UVA. Maturity 10-20-2025 |
55692 |
3,836,170 |
3 |
3,836,170 |
1,919,543 |
|
3,836,170 |
- |
3,836,170 |
Corporate Bond New San S.A. in Pesos Private BADLAR + 440 bps. Maturity 02-14-2024 |
56847 |
225,822 |
3 |
225,822 |
- |
|
225,822 |
- |
225,822 |
Corporate Bond Bco. de Serv. Financieros Series 22 in Pesos at Floating rate. Maturity 03-03-2024 |
56886 |
216,530 |
3 |
216,530 |
- |
|
216,530 |
- |
216,530 |
Corporate Bond Petroquímica Com. Rivadavia S.A. in Pesos at Floating Rate. Maturity 08-15-2024 |
56855 |
172,734 |
3 |
172,734 |
- |
|
172,734 |
- |
172,734 |
Corporate Bond New San S.A. in Pesos Private BADLAR + 575 bps. Maturity 05-19-2024 |
57044 |
152,317 |
3 |
152,317 |
- |
|
152,317 |
- |
152,317 |
Corporate Bond Refi Pampa Series 2 adjusted by UVA. Maturity 05-06-2025 |
56123 |
87,204 |
3 |
87,204 |
105,526 |
|
87,204 |
- |
87,204 |
|
|
|
|
|
|
|
|
|
|
Subtotal Private Securities - In pesos |
|
4,690,777 |
|
4,690,777 |
2,025,069 |
|
4,690,777 |
- |
4,690,777 |
|
|
|
|
|
|
|
|
|
|
Private Securities - In foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bond Pampa Energia S.A. Series 18 in USD. Maturity 09-08-2025 |
57326 |
1,602,518 |
2 |
1,602,518 |
- |
|
1,602,518 |
- |
1,602,518 |
Corporate bond Empresa de Gas del Sur (EMGASUD) S.A. Series 39 in USD. Maturity 07-14-2028 |
57194 |
1,338,658 |
2 |
1,338,658 |
- |
|
1,338,658 |
- |
1,338,658 |
Corporate Bond Vista Energy Series 20 USD. Maturity 07-20-2025 |
57081 |
1,326,772 |
2 |
1,326,772 |
- |
|
1,326,772 |
- |
1,326,772 |
Corporate bond Luz De Tres Picos 4 USD. Maturity 09-29-2026 |
56467 |
347 |
2 |
347 |
1,731,557 |
|
347 |
- |
347 |
Corporate bond Petroquimica Comodoro Rivadavia Series O in USD. Maturity 09-22-2027 |
57379 |
118 |
2 |
118 |
- |
|
118 |
- |
118 |
Corporate Bond Petroquímica Comodoro Rivadavia Series H USD. Maturity 12-17-2024 |
55849 |
- |
2 |
- |
589,815 |
|
- |
- |
- |
Corporate Bond Vista Energy Series 13 USD. Maturity 08-08-2024 |
56207 |
- |
2 |
- |
4,213,672 |
|
- |
- |
- |
Corporate Bond Vista Energy Series 15 USD. Maturity 01-21-2025 |
56637 |
- |
2 |
- |
2,755,540 |
|
- |
- |
- |
Dollar-linked Corporate Bond Molinos Agro SA. Maturity 05-18-2023 |
55364 |
- |
2 |
- |
277,783 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Subtotal Private Securities - In foreign currency |
|
4,268,413 |
|
4,268,413 |
9,568,367 |
|
4,268,413 |
- |
4,268,413 |
|
|
|
|
|
|
|
|
|
|
TOTAL DEBT SECURITIES AT FAIR VALUE THROUGH OCI |
|
656,275,298 |
|
656,275,298 |
1,870,040,724 |
|
656,275,298 |
(1,039,599) |
655,235,699 |
|
|
|
|
|
|
|
|
|
|
EXHIBIT A
(Continued)
BREAKDOWN OF GOVERNMENT AND PRIVATE SECURITIES
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
|
|
|
|
|
|
|
|
|
HOLDING |
|
POSITION |
|
|
Fair |
Fair |
Accounting |
Accounting |
|
Position with no |
|
|
Account |
Identification |
value |
value |
balance |
balance |
|
options |
Options |
Final position |
|
|
|
level |
12.31.23 |
12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER DEBT SECURITIES (Continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEASURED AT AMORTIZED COST |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Argentine Treasury Bonds in pesos. Maturity 08-23-2025 |
9196 |
49,560,876 |
2 |
49,502,692 |
- |
|
49,502,692 |
- |
49,502,692 |
Argentine Treasury Bonds in pesos. Maturity 05-23-2027 |
9132 |
32,289,635 |
2 |
32,406,871 |
100,997,240 |
|
32,406,871 |
- |
32,406,871 |
Argentine Treasury Bonds in pesos at 0.7% Badlar Private Rate. Maturity 11-23-2027 |
9166 |
15,316,803 |
2 |
14,771,877 |
37,662,724 |
|
14,771,877 |
- |
14,771,877 |
|
|
|
|
|
|
|
|
|
|
Subtotal Government Securities - In pesos |
|
97,167,314 |
|
96,681,440 |
138,659,964 |
|
96,681,440 |
- |
96,681,440 |
|
|
|
|
|
|
|
|
|
|
TOTAL DEBT SECURITIES AT AMORTIZED COST |
|
97,167,314 |
|
96,681,440 |
138,659,964 |
|
96,681,440 |
- |
96,681,440 |
|
|
|
|
|
|
|
|
|
|
TOTAL OTHER DEBT SECURITIES |
|
753,442,612 |
|
752,956,738 |
2,008,700,688 |
|
752,956,738 |
(1,039,599) |
751,917,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY INSTRUMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
Private Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BYMA - Bolsas y Mercados Argentina Share |
|
2,169,288 |
1 |
2,169,288 |
1,741,880 |
|
2,169,288 |
- |
2,169,288 |
Banco de Valores de Bs. As. Share |
|
1,056,648 |
1 |
1,056,648 |
991,886 |
|
1,056,648 |
- |
1,056,648 |
|
|
|
|
|
|
|
|
|
|
Subtotal Private Securities - In pesos |
|
3,225,936 |
|
3,225,936 |
2,733,766 |
|
3,225,936 |
- |
3,225,936 |
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY INSTRUMENTS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS |
|
3,225,936 |
|
3,225,936 |
2,733,766 |
|
3,225,936 |
- |
3,225,936 |
|
|
|
|
|
|
|
|
|
|
MEASURED AT FAIR VALUE THROUGH OCI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
Private Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
1,552,778 |
3 |
1,552,778 |
676 |
|
1,552,778 |
- |
1,552,778 |
|
|
|
|
|
|
|
|
|
|
Subtotal Private Securities - In pesos |
|
1,552,778 |
|
1,552,778 |
676 |
|
1,552,778 |
- |
1,552,778 |
|
|
|
|
|
|
|
|
|
|
Foreign: |
|
|
|
|
|
|
|
|
|
Private Securities - In foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
432,216 |
2 |
432,216 |
187,625 |
|
432,216 |
- |
432,216 |
|
|
|
|
|
|
|
|
|
|
Subtotal Private Securities - In foreign currency |
|
432,216 |
|
432,216 |
187,625 |
|
432,216 |
- |
432,216 |
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY INSTRUMENTS MEASURED AT FAIR VALUE THROUGH OCI |
|
1,984,994 |
|
1,984,994 |
188,301 |
|
1,984,994 |
- |
1,984,994 |
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY INSTRUMENTS |
|
5,210,930 |
|
5,210,930 |
2,922,067 |
|
5,210,930 |
- |
5,210,930 |
EXHIBIT B
CLASSIFICATION OF LOANS AND OTHER FINANCING
ACCORDING TO FINANCIAL PERFORMANCE
AND GUARANTEES RECEIVED
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
|
|
|
|
|
|
|
|
|
Account |
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
|
COMMERCIAL PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
Normal performance |
|
860,053,561 |
|
765,935,883 |
|
Preferred collaterals and counter-guarantees "A" |
|
4,764,144 |
|
5,636,180 |
|
Preferred collaterals and counter-guarantees "B" |
|
3,851,231 |
|
6,445,079 |
|
No preferred guarantees or counter guarantees |
|
851,438,186 |
|
753,854,624 |
|
|
|
|
|
|
With special follow-up |
|
295,227 |
|
2,391,108 |
|
|
|
|
|
|
Under observation |
|
295,227 |
|
- |
|
Preferred collaterals and counter-guarantees "B" |
|
295,227 |
|
- |
|
|
|
|
|
|
Under negotiation or refinancing agreements |
|
- |
|
2,391,108 |
|
Preferred collaterals and counter-guarantees "B" |
|
- |
|
402,221 |
|
No preferred guarantees or counter guarantees |
|
- |
|
1,988,887 |
|
|
|
|
|
|
Troubled |
|
2,802,295 |
|
3,425,349 |
|
No preferred guarantees or counter guarantees |
|
2,802,295 |
|
3,425,349 |
|
|
|
|
|
|
With high risk of insolvency |
|
25,569 |
|
443,464 |
|
No preferred guarantees or counter guarantees |
|
25,569 |
|
443,464 |
|
|
|
|
|
|
Uncollectible |
|
32,691 |
|
85,173 |
|
No preferred guarantees or counter guarantees |
|
32,691 |
|
85,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
863,209,343 |
|
772,280,977 |
|
|
|
|
|
|
EXHIBIT B
(Continued)
CLASSIFICATION OF LOANS AND OTHER FINANCING
ACCORDING TO FINANCIAL PERFORMANCE
AND GUARANTEES RECEIVED
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
Account |
|
12.31.23 |
|
12.31.22 |
|
|
|
|
|
|
CONSUMER AND HOUSING PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
Normal performance |
|
1,152,438,795 |
|
1,443,750,188 |
|
Preferred collaterals and counter-guarantees "A" |
|
404,129 |
|
515,679 |
|
Preferred collaterals and counter-guarantees "B" |
|
72,514,134 |
|
120,117,359 |
|
No preferred guarantees or counter guarantees |
|
1,079,520,532 |
|
1,323,117,150 |
|
|
|
|
|
|
Low risk |
|
12,980,534 |
|
17,590,815 |
|
Preferred collaterals and counter-guarantees "B" |
|
587,033 |
|
1,151,812 |
|
No preferred guarantees or counter guarantees |
|
12,393,501 |
|
16,439,003 |
|
|
|
|
|
|
Low risk - with special follow-up |
|
468,023 |
|
577,349 |
|
No preferred guarantees or counter guarantees |
|
468,023 |
|
577,349 |
|
|
|
|
|
|
Medium risk |
|
12,851,707 |
|
12,079,899 |
|
Preferred collaterals and counter-guarantees "A" |
|
76 |
|
159 |
|
Preferred collaterals and counter-guarantees "B" |
|
124,734 |
|
260,899 |
|
No preferred guarantees or counter guarantees |
|
12,726,897 |
|
11,818,841 |
|
|
|
|
|
|
High risk |
|
9,779,951 |
|
8,463,007 |
|
Preferred collaterals and counter-guarantees "B" |
|
165,641 |
|
431,920 |
|
No preferred guarantees or counter guarantees |
|
9,614,310 |
|
8,031,087 |
|
|
|
|
|
|
Uncollectible |
|
1,625,749 |
|
1,207,897 |
|
Preferred collaterals and counter-guarantees "A" |
|
- |
|
13,397 |
|
Preferred collaterals and counter-guarantees "B" |
|
275,446 |
|
220,332 |
|
No preferred guarantees or counter guarantees |
|
1,350,303 |
|
974,168 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
1,190,144,759 |
|
1,483,669,155 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL GENERAL |
|
2,053,354,102 |
|
2,255,950,132 |
|
|
|
|
|
|
EXHIBIT C
CONCENTRATION OF LOANS AND OTHER FINANCING
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
12.31.23 |
|
12.31.22 |
|
|
|
|
% over |
|
|
|
% over |
|
Number of customers |
|
Debt |
total |
|
Debt |
|
total |
|
|
|
balance |
portfolio |
|
balance |
|
portfolio |
|
|
|
|
|
|
|
|
|
|
10 largest customers |
|
248,310,918 |
12.09 % |
|
190,451,797 |
|
8.44 % |
|
50 following largest customers |
|
251,198,004 |
12.23 % |
|
270,622,079 |
|
12.00 % |
|
100 following largest customers |
|
151,885,105 |
7.40 % |
|
150,724,383 |
|
6.68 % |
|
All other customers |
|
1,401,960,075 |
68.28 % |
|
1,644,151,873 |
|
72.88 % |
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
2,053,354,102 |
100.00 % |
|
2,255,950,132 |
|
100.00 % |
EXHIBIT D
BREAKDOWN BY TERM OF LOANS AND OTHER FINANCING
AS OF DECEMBER 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements) (1)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Terms remaining to maturity |
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio |
1 |
3 |
6 |
12 |
24 |
more than |
|
|
ACCOUNT |
due |
month |
months |
months |
months |
months |
24 |
TOTAL |
|
|
|
|
|
|
|
|
months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-financial Government sector |
- |
48,601 |
66,916 |
18,112 |
25,548 |
51,096 |
80,902 |
291,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial sector |
- |
19,337,212 |
1,757,701 |
6,829,308 |
23,482,011 |
7,063,275 |
11,146,138 |
69,615,645 |
|
|
|
|
|
|
|
|
|
|
|
Non-financial Private Sector and Residents Abroad |
22,051,479 |
911,249,491 |
301,886,711 |
327,053,877 |
282,549,278 |
196,499,903 |
332,692,800 |
2,373,983,539 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
22,051,479 |
930,635,304 |
303,711,328 |
333,901,297 |
306,056,837 |
203,614,274 |
343,919,840 |
2,443,890,359 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) These balances are total contractual flows and, therefore, include principal, accrued and to be accrued interest and charges. |
BREAKDOWN BY TERM OF LOANS AND OTHER FINANCING
AS OF DECEMBER 31, 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements) (1)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
Terms remaining to maturity |
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio |
1 |
3 |
6 |
12 |
24 |
more than |
|
|
ACCOUNT |
due |
month |
months |
months |
months |
months |
24 |
TOTAL |
|
|
|
|
|
|
|
|
months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-financial Government sector |
- |
4,356 |
- |
- |
- |
- |
- |
4,356 |
|
|
|
|
|
|
|
|
|
|
|
B.C.R.A. |
- |
28,132 |
- |
- |
- |
- |
- |
28,132 |
|
|
|
|
|
|
|
|
|
|
|
Financial sector |
- |
21,932,002 |
16,008,304 |
7,604,060 |
5,712,356 |
19,395,515 |
5,645,551 |
76,297,788 |
|
|
|
|
|
|
|
|
|
|
|
Non-financial Private Sector and Residents Abroad |
20,442,203 |
1,125,253,378 |
290,504,449 |
242,580,490 |
207,315,960 |
210,131,156 |
415,433,541 |
2,511,661,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
20,442,203 |
1,147,217,868 |
306,512,753 |
250,184,550 |
213,028,316 |
229,526,671 |
421,079,092 |
2,587,991,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) These balances are total contractual flows and, therefore, include principal, accrued and to be accrued interest and charges. |
EXHIBIT E
BREAKDOWN OF INVESTMENTS IN OTHER COMPANIES
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
|
|
|
|
|
|
|
|
Information on the issuer |
Account |
|
Shares |
|
|
|
|
|
Data of latest financial statements |
Identification |
Description |
|
|
Fair |
Votes |
|
|
|
|
|
Principal |
Fiscal |
Share |
Equity |
Income/(loss) |
|
|
|
Class |
value |
per |
Number |
Amount |
|
business |
period/year |
capital |
|
for the |
|
|
|
|
per unit |
share |
|
12.31.23 |
|
12.31.22 |
|
|
end date |
|
|
period/year |
|
IN FINANCIAL INSTITUTIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30682419578 |
Volkswagen Financial Services Cía. Financiera S.A. |
|
Common |
1.00 $ |
1 |
457,470,000 |
11,550,203 |
|
10,743,461 |
|
Financing |
12/31/2023 |
897,000 |
22,647,458 |
1,581,792 |
30707847367 |
PSA Finance Arg. Cía. Financiera S.A. |
|
Common |
1,000.00 $ |
1 |
26,089 |
6,743,959 |
|
6,467,044 |
|
Financing |
12/31/2023 |
52,178 |
13,487,919 |
(796,735) |
|
|
|
Subtotal Subsidiaries |
|
|
|
18,294,162 |
|
17,210,505 |
|
|
|
|
|
|
|
Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33707124909 |
Rombo Cía. Financiera S.A. |
|
Common |
1,000.00 $ |
1 |
24,000 |
3,077,455 |
|
2,317,504 |
|
Financing |
12/31/2023 |
60,000 |
7,693,638 |
1,899,836 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Associates and Joint ventures |
|
|
|
3,077,455 |
|
2,317,504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total in Financial Institutions |
|
|
|
21,371,617 |
|
19,528,009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IN SUPPLEMENTARY SERVICES COMPANIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30663323926 |
Consolidar Administradora de Fondos de Jubilaciones |
|
|
|
|
|
|
|
|
|
Retirement and Pension Funds |
|
|
|
|
|
y Pensiones S.A.(undergoing liquidation proceedings) |
|
Common |
1.00 $ |
1 |
127,037,593 |
148,272 |
|
43,153 |
|
Manager Company |
12/31/2023 |
235,739 |
275,139 |
(25,122) |
30548590163 |
BBVA Asset Management Argentina S.A. Sociedad |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mutual Fund Manager |
|
Common |
1.00 $ |
1 |
242,524 |
11,393,991 |
|
11,519,953 |
|
Mutual Fund Manager |
12/31/2023 |
243 |
11,393,991 |
7,537,737 |
|
|
|
Subtotal Subsidiaries |
|
|
|
11,542,263 |
|
11,563,106 |
|
|
|
|
|
|
|
Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30690783521 |
Interbanking S.A |
|
Common |
1.00 $ |
1 |
149,556 |
2,110,363 |
|
2,565,912 |
|
Electronic and IT services for financial market |
12/31/2022 |
1,346 |
27,951,978 |
8,304,041 |
|
|
|
Subtotal Associates and joint ventures |
|
|
|
2,110,363 |
|
2,565,912 |
|
|
|
|
|
|
|
|
|
Total in Supplementary service companies |
|
|
|
13,652,626 |
|
14,129,018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IN OTHER COMPANIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30500064230 |
BBVA Consolidar Seguros S.A. |
|
Common |
1.00 $ |
1 |
1,301,847 |
4,710,065 |
|
3,728,002 |
|
Insurance |
12/31/2023 |
10,652 |
38529275 |
4,249,692 |
30716829436 |
Play Digital S.A. |
|
Common |
1.00 $ |
1 |
424,697,178 |
1,953,029 |
|
1,515,211 |
|
Electronic payment services |
9/30/2023 |
3,841,024 |
9,978,949 |
(7,818,428) |
30717168190 |
Openpay Argentina S.A. |
|
Common |
1.00 $ |
1 |
174,088,490 |
515,320 |
|
671,083 |
|
Electronic payment services |
12/31/2023 |
1,391,595 |
4,135,789 |
(1,764,046) |
|
|
|
Subtotal Associates and joint ventures |
|
|
|
7,178,414 |
|
5,914,296 |
|
|
|
|
|
|
|
|
|
Total in Other Companies |
|
|
|
7,178,414 |
|
5,914,296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
42,202,657 |
|
39,571,323 |
|
|
|
|
|
|
EXHIBIT F
PROPERTY AND EQUIPMENT
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023
(Amounts stated in thousands of pesos in constant
currency - Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
|
|
Impairment |
|
Depreciation |
|
|
Original |
Total |
|
|
|
|
Account |
value at the |
estimated |
|
|
|
|
|
|
|
|
|
Residual value as of |
|
beginning |
useful life |
Additions |
Derecognitions |
Loss |
Reversals |
|
Accumulated as of |
Derecognitions |
For the year |
At year-end |
12.31.23 |
|
of the year |
in years |
|
|
|
|
|
12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate |
250,457,251 |
50 |
7,237,139 |
4,047,487 |
797,137 |
1,115,683 |
|
29,949,055 |
3,921,995 |
5,430,127 |
31,457,187 |
222,508,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Furniture and facilities |
79,584,203 |
10 |
6,823,323 |
3,845,808 |
- |
- |
|
39,929,651 |
3,839,926 |
8,211,595 |
44,301,320 |
38,260,398 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Machinery and equipment |
21,164,434 |
5 |
4,853,634 |
10,257,394 |
- |
- |
|
11,467,512 |
10,257,394 |
6,672,979 |
7,883,097 |
7,877,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicles |
1,957,961 |
5 |
538,173 |
77,078 |
- |
- |
|
1,202,571 |
77,078 |
291,545 |
1,417,038 |
1,002,018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Right of use of leased real estate |
42,792,809 |
10 |
9,478,874 |
3,293,740 |
- |
- |
|
24,581,496 |
2,229,363 |
2,295,494 |
24,647,627 |
24,330,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction in progress |
10,183,431 |
- |
4,339,376 |
10,443,032 |
- |
- |
|
- |
- |
- |
- |
4,079,775 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Property and equipment |
406,140,089 |
|
33,270,519 |
31,964,539 |
797,137 |
1,115,683 |
|
107,130,285 |
20,325,756 |
22,901,740 |
109,706,269 |
298,058,346 |
PROPERTY AND EQUIPMENT
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
|
|
|
|
|
|
|
|
Impairment |
Depreciation |
|
|
|
Original |
|
Total |
|
|
|
|
|
|
|
|
|
|
value at the |
|
estimated |
|
Transfer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residual value as of |
Account |
beginning |
|
useful life |
|
|
|
Additions |
|
Derecognitions |
|
Loss |
|
Accumulated as of |
|
Transfer |
|
Derecognitions |
|
For the year |
|
At year-end |
|
12.31.22 |
|
of the year |
|
in years |
|
|
|
|
|
|
|
|
|
12.31.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate |
251,274,349 |
|
50 |
|
(11,218,254) |
|
13,274,105 |
|
681,396 |
|
2,191,553 |
|
25,787,639 |
|
(852,230) |
|
681,400 |
|
5,695,046 |
|
29,949,055 |
|
220,508,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Furniture and facilities |
76,577,294 |
|
10 |
|
- |
|
5,285,188 |
|
2,278,279 |
|
- |
|
34,234,394 |
|
- |
|
2,278,279 |
|
7,973,536 |
|
39,929,651 |
|
39,654,552 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Machinery and equipment |
31,163,836 |
|
5 |
|
- |
|
5,788,439 |
|
15,787,841 |
|
- |
|
18,498,915 |
|
- |
|
15,787,848 |
|
8,756,445 |
|
11,467,512 |
|
9,696,922 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicles |
1,540,107 |
|
5 |
|
- |
|
453,990 |
|
36,136 |
|
- |
|
1,038,931 |
|
- |
|
36,136 |
|
199,776 |
|
1,202,571 |
|
755,390 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Right of use of leased real estate |
39,804,466 |
|
10 |
|
- |
|
5,440,819 |
|
2,452,476 |
|
- |
|
18,982,398 |
|
- |
|
564,436 |
|
6,163,534 |
|
24,581,496 |
|
18,211,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction in progress |
6,805,011 |
|
— |
|
- |
|
3,378,420 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
10,183,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Property and Equipment |
407,165,063 |
|
|
|
(11,218,254) |
|
33,620,961 |
|
21,236,128 |
|
2,191,553 |
|
98,542,277 |
|
(852,230) |
|
19,348,099 |
|
28,788,337 |
|
107,130,285 |
|
299,009,804 |
EXHIBIT F
(Continued)
INVESTMENT PROPERTY
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
|
|
Impairment |
Depreciation |
|
|
|
Original |
|
Total |
|
|
|
Account |
value at the |
|
estimated |
|
|
|
|
|
|
|
|
|
Residual value as of |
|
beginning |
|
useful life |
|
Loss |
|
Accumulated as of |
|
For the year |
|
At year-end |
|
12.31.23 |
|
of the year |
|
in years |
|
|
|
12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased real estate |
63,383,556 |
|
50 |
|
238,314 |
|
3,093,466 |
|
1,042,897 |
|
4,136,363 |
|
59,008,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other investment properties |
1,390,160 |
|
10 |
|
- |
|
216,080 |
|
30,095 |
|
246,175 |
|
1,143,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment properties |
64,773,716 |
|
|
|
238,314 |
|
3,309,546 |
|
1,072,992 |
|
4,382,538 |
|
60,152,864 |
INVESTMENT PROPERTY
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
Original |
|
Total |
|
|
|
|
|
|
|
Account |
value at the |
|
estimated |
|
Transfer |
|
|
|
|
|
|
|
|
|
|
|
Residual value as of |
|
beginning |
|
useful life |
|
|
|
Additions |
|
Accumulated as of |
|
Transfer |
|
For the year |
|
At year-end |
|
12.31.22 |
|
of the year |
|
in years |
|
|
|
|
|
12.31.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased real estate |
17,108,613 |
|
50 |
|
11,218,254 |
|
35,056,689 |
|
1,328,347 |
|
852,230 |
|
912,889 |
|
3,093,466 |
|
60,290,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other investment properties |
1,390,160 |
|
10 |
|
- |
|
- |
|
185,984 |
|
- |
|
30,096 |
|
216,080 |
|
1,174,080 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment properties |
18,498,773 |
|
|
|
11,218,254 |
|
35,056,689 |
|
1,514,331 |
|
852,230 |
|
942,985 |
|
3,309,546 |
|
61,464,170 |
EXHIBIT G
INTANGIBLE ASSETS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
|
|
|
|
|
Amortization |
|
|
|
Original |
|
Total |
|
|
|
|
|
|
|
value at the |
|
estimated |
|
|
|
|
|
|
|
|
|
|
|
|
Residual value as of |
|
beginning |
|
useful life |
|
Additions |
|
Derecognitions |
Accumulated as of |
|
Derecognitions |
|
For the year |
|
At year-end |
|
12.31.23 |
|
of the year |
|
in years |
|
|
|
|
12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Own systems development expenses |
34,363,970 |
|
5 |
|
8,640,638 |
|
2,986,996 |
4,623,243 |
|
1,097,370 |
|
3,572,966 |
|
7,098,839 |
|
32,918,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Intangible assets |
34,363,970 |
|
|
|
8,640,638 |
|
2,986,996 |
4,623,243 |
|
1,097,370 |
|
3,572,966 |
|
7,098,839 |
|
32,918,773 |
INTANGIBLE ASSETS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
|
|
|
|
|
|
Amortization |
|
|
Account |
Original |
|
Total |
|
|
|
|
|
|
|
|
value at the |
|
estimated |
|
|
|
|
|
|
|
|
|
|
|
|
|
Residual value as of |
|
beginning |
|
useful life |
|
Additions |
|
Derecognitions |
|
Accumulated as of |
|
Derecognitions |
|
For the year |
|
At year-end |
|
12.31.22 |
|
of the year |
|
in years |
|
|
|
|
|
12.31.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Own systems development expenses |
25,341,884 |
|
5 |
|
17,231,191 |
|
8,209,105 |
|
3,219,133 |
|
543,185 |
|
1,947,295 |
|
4,623,243 |
|
29,740,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Intangible assets |
25,341,884 |
|
|
|
17,231,191 |
|
8,209,105 |
|
3,219,133 |
|
543,185 |
|
1,947,295 |
|
4,623,243 |
|
29,740,727 |
EXHIBIT H
CONCENTRATION OF DEPOSITS
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
|
|
|
|
|
|
|
|
12.31.23 |
12.31.22 |
|
|
|
|
% over |
|
|
% over |
|
Number of customers |
Debt |
total |
|
Debt |
total |
|
|
|
balance |
portfolio |
|
balance |
portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10 largest customers |
|
550,858,950 |
15.12 % |
|
383,352,976 |
9.41 % |
|
|
|
|
|
|
|
|
|
50 following largest customers |
|
399,742,804 |
10.97 % |
|
457,407,580 |
11.23 % |
|
|
|
|
|
|
|
|
|
100 following largest customers |
|
186,277,178 |
5.11 % |
|
169,373,610 |
4.16 % |
|
|
|
|
|
|
|
|
|
All other customers |
|
2,507,307,617 |
68.80 % |
|
3,063,266,679 |
75.20 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
3,644,186,549 |
100.00 % |
|
4,073,400,845 |
100.00 % |
|
|
|
|
|
|
|
|
EXHIBIT I
BREAKDOWN OF FINANCIAL LIABILITIES BY REMAINING
TERMS
AS OF DECEMBER 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements) (1)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
Terms remaining to maturity |
|
|
|
|
|
|
|
|
|
1 |
3 |
6 |
12 |
24 |
more than |
|
ITEMS |
month |
months |
months |
months |
months |
24 months |
TOTAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
3,397,279,603 |
284,188,892 |
94,987,611 |
2,273,011 |
289,344 |
- |
3,779,018,461 |
Non-financial Government sector |
34,022,421 |
128,909 |
- |
- |
- |
- |
34,151,330 |
Financial sector |
15,113,032 |
- |
- |
- |
- |
- |
15,113,032 |
Non-financial Private Sector and Residents Abroad |
3,348,144,150 |
284,059,983 |
94,987,611 |
2,273,011 |
289,344 |
- |
3,729,754,099 |
Liabilities at fair value through profit or loss |
10,330,335 |
- |
- |
- |
- |
- |
10,330,335 |
Derivative instruments |
2,145,218 |
- |
- |
- |
- |
- |
2,145,218 |
Other financial liabilities |
444,170,504 |
834,748 |
1,194,041 |
2,232,121 |
3,417,457 |
18,682,425 |
470,531,296 |
Financing received from the BCRA and other financial institutions |
3,282,266 |
419,150 |
- |
- |
- |
- |
3,701,416 |
|
|
|
|
|
|
|
|
TOTAL |
3,857,207,926 |
285,442,790 |
96,181,652 |
4,505,132 |
3,706,801 |
18,682,425 |
4,265,726,726 |
|
|
|
|
|
|
|
|
(1) These balances are total contractual flows and, therefore, include principal, accrued and to be accrued interest and charges. |
BREAKDOWN OF FINANCIAL LIABILITIES BY REMAINING
TERMS
AS OF DECEMBER 31, 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements) (1)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Terms remaining to maturity |
|
|
|
|
|
|
|
|
|
1 |
3 |
6 |
12 |
24 |
more than |
|
ACCOUNTS |
month |
months |
months |
months |
months |
24 months |
TOTAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
3,508,985,620 |
321,294,398 |
322,531,785 |
4,007,827 |
241,878 |
- |
4,157,061,508 |
Non-financial Government sector |
29,901,568 |
420,326 |
- |
- |
- |
- |
30,321,894 |
Financial sector |
1,894,898 |
- |
- |
- |
- |
- |
1,894,898 |
Non-financial Private Sector and Residents Abroad |
3,477,189,154 |
320,874,072 |
322,531,785 |
4,007,827 |
241,878 |
- |
4,124,844,716 |
Derivative instruments |
1,041,154 |
- |
- |
- |
- |
- |
1,041,154 |
Other financial liabilities |
363,955,729 |
870,868 |
1,158,433 |
1,848,530 |
3,249,479 |
15,163,485 |
386,246,524 |
Financing received from the BCRA and other financial institutions |
8,014,246 |
763,140 |
683,881 |
- |
- |
- |
9,461,267 |
|
|
|
|
|
|
|
|
TOTAL |
3,881,996,749 |
322,928,406 |
324,374,099 |
5,856,357 |
3,491,357 |
15,163,485 |
4,553,810,453 |
|
|
|
|
|
|
|
|
(1) These balances are total contractual flows and, therefore, include principal, accrued and to be accrued interest and charges. |
EXHIBIT J
PROVISIONS
AS OF DECEMBER 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decreases |
|
|
|
|
|
Accounts |
|
Balances at the beginning of the year |
|
Increases |
|
Reversals |
|
Uses |
|
Monetary gain (loss) generated by provisions |
|
Balances as of 12.31.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCLUDED IN LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Provisions for contingent commitments |
|
8,389,890 |
|
4,849,781 |
(1)(3) |
- |
|
- |
|
(7,267,301) |
|
5,972,370 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- For administrative, disciplinary and criminal penalties |
|
15,570 |
|
- |
|
- |
|
- |
|
(10,570) |
|
5,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Provisions for termination plans |
|
1,413,835 |
|
477,840 |
|
- |
|
- |
|
(1,121,574) |
|
770,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Other |
|
16,729,632 |
|
15,871,349 |
(2) |
1,467 |
|
4,753,501 |
|
(13,999,446) |
|
13,846,567 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL PROVISIONS |
|
26,548,927 |
|
21,198,970 |
|
1,467 |
|
4,753,501 |
|
(22,398,891) |
|
20,594,038 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Set up in compliance with the provisions of Communication “A” 2950 and supplementary regulations of the BCRA. |
(2) |
Set up to cover for potential contingencies not considered in other accounts (civil, commercial, labor and other lawsuits), and as required by Memorandum 6/2017 issued by the BCRA. |
(3) |
It includes an increase of 114,526 for exchange differences in foreign currency for contingent commitments. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISIONS
AS OF DECEMBER 31, 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decreases |
|
Monetary gain (loss) generated by provisions |
|
|
|
Accounts |
|
Balances at the beginning of the year |
|
Increases |
|
Reversals |
|
Uses |
|
|
Balances as of 12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCLUDED IN LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Provisions for contingent commitments |
|
5,178,233 |
|
6,367,666 |
(1)(4) |
- |
|
- |
|
(3,156,009) |
|
8,389,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- For administrative, disciplinary and criminal penalties |
|
30,331 |
|
- |
|
- |
|
- |
|
(14,761) |
|
15,570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Provisions for reorganization |
|
8,149,225 |
|
7,391,880 |
(3) |
709,547 |
|
11,531,927 |
|
(3,299,631) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Provisions for termination plans |
|
1,596,649 |
|
698,306 |
|
- |
|
- |
|
(881,120) |
|
1,413,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Other |
|
18,562,452 |
|
11,654,120 |
(2) |
- |
|
2,615,351 |
|
(10,871,589) |
|
16,729,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL PROVISIONS |
|
33,516,890 |
|
26,111,972 |
|
709,547 |
|
14,147,278 |
|
(18,223,110) |
|
26,548,927 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Set up in compliance with the provisions of Communication “A” 2950 and supplementary regulations of the BCRA. |
(2) |
Set up to cover for potential contingencies not considered in other accounts (civil, commercial, labor and other lawsuits), and as required by Memorandum 6/2017 issued by the BCRA. |
(3) |
See Note 23 to the Consolidated Financial Statements |
(4) |
It includes an increase of 8,296 for exchange differences in foreign currency for contingent commitments. |
|
|
EXHIBIT K
CAPITAL STRUCTURE
AS OF DECEMBER 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
SHARES |
|
SHARE CAPITAL |
|
|
|
|
|
Issued |
|
|
|
Class |
Number |
Face |
Votes |
|
Outstanding |
|
Paid-in |
|
|
|
Value |
per |
|
|
|
|
|
|
|
per share |
share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON |
612,710,079 |
1 |
1 |
|
612,710 |
|
612,710 |
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Registered with the Public Registry of Commerce. |
|
|
|
EXHIBIT L
BALANCES IN FOREIGN CURRENCY
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCOUNTS |
|
|
TOTAL |
AS OF 12.31.23 (per currency) |
|
TOTAL |
|
|
|
|
AS OF |
|
|
|
|
|
AS OF |
ASSETS |
|
|
12.31.23 |
Dollar |
Euro |
Real |
Other |
|
12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
Cash and deposits in banks |
|
|
|
1,076,719,793 |
1,041,165,789 |
32,597,593 |
494,680 |
2,461,731 |
|
773,572,820 |
Debt securities at fair value through profit or loss |
|
|
|
225,199,948 |
225,199,948 |
- |
- |
- |
|
10,961,484 |
Other financial assets |
|
|
|
38,239,679 |
38,224,891 |
14,788 |
- |
- |
|
26,317,060 |
Loans and other financing |
|
|
|
196,957,836 |
196,589,749 |
368,087 |
- |
- |
|
119,996,346 |
Non-financial Government sector |
|
|
|
1,778 |
1,778 |
- |
- |
- |
|
146 |
Other financial institutions |
|
|
|
4,138 |
4,138 |
- |
- |
- |
|
2,027 |
Non-financial Private Sector and Residents Abroad |
|
|
|
196,951,920 |
196,583,833 |
368,087 |
- |
- |
|
119,994,173 |
Other debt securities |
|
|
|
74,070,243 |
74,070,243 |
- |
- |
- |
|
17,022,612 |
Financial assets pledged as collateral |
|
|
|
42,418,319 |
42,418,319 |
- |
- |
- |
|
33,542,338 |
Investments in Equity Instruments |
|
|
|
432,216 |
404,468 |
27,748 |
- |
- |
|
187,625 |
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
|
|
1,654,038,034 |
1,618,073,407 |
33,008,216 |
494,680 |
2,461,731 |
|
981,600,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
AS OF 12.31.23 (per currency) |
|
TOTAL |
|
|
|
|
AS OF |
|
|
|
|
|
AS OF |
LIABILITIES |
|
|
12.31.23 |
Dollar |
Euro |
Real |
Other |
|
12.31.22 |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
1,282,202,446 |
1,263,905,728 |
18,296,718 |
- |
- |
|
890,887,643 |
Non-financial Government sector |
|
|
|
22,134,436 |
22,074,195 |
60,241 |
- |
- |
|
20,021,689 |
Financial sector |
|
|
|
632,096 |
625,174 |
6,922 |
- |
- |
|
268,556 |
Non-financial Private Sector and Residents Abroad |
|
|
|
1,259,435,914 |
1,241,206,359 |
18,229,555 |
- |
- |
|
870,597,398 |
Other financial liabilities |
|
|
|
79,930,161 |
73,958,024 |
5,400,352 |
- |
571,785 |
|
68,186,188 |
Financing received from the BCRA and other financial institutions |
|
|
|
3,119,096 |
2,800,253 |
318,843 |
- |
- |
|
3,455,761 |
Other non-financial liabilities |
|
|
|
60,234,996 |
37,135,330 |
23,099,666 |
- |
- |
|
35,081,530 |
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
|
|
1,425,486,699 |
1,377,799,335 |
47,115,579 |
- |
571,785 |
|
997,611,122 |
EXHIBIT N
FINANCIAL ASSISTANCE TO RELATED PARTIES
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
|
|
|
|
|
|
|
|
|
Item |
|
Normal |
|
TOTAL |
|
|
Situation |
|
|
|
|
|
|
|
|
|
|
|
|
|
12.31.23 |
12.31.22 |
|
|
|
|
|
|
1. Loans and other financing |
|
30,908,887 |
|
30,908,887 |
49,162,368 |
|
|
|
|
|
|
- Overdrafts |
|
175,814 |
|
175,814 |
79,081 |
Preferred collaterals and counter-guarantees "A" |
|
- |
|
- |
44,232 |
No preferred guarantees or counter guarantees |
|
175,814 |
|
175,814 |
34,849 |
|
|
|
|
|
|
- Instruments |
|
5,138 |
|
5,138 |
- |
No preferred guarantees or counter guarantees |
|
5,138 |
|
5,138 |
- |
|
|
|
|
|
|
- Mortgage and pledge loans |
|
62,073 |
|
62,073 |
73,641 |
Preferred collaterals and counter-guarantees "B" |
|
62,073 |
|
62,073 |
73,641 |
|
|
|
|
|
|
- Consumer loans |
|
9,587 |
|
9,587 |
34,326 |
No preferred guarantees or counter guarantees |
|
9,587 |
|
9,587 |
34,326 |
|
|
|
|
|
|
- Credit Cards |
|
158,385 |
|
158,385 |
224,564 |
No preferred guarantees or counter guarantees |
|
158,385 |
|
158,385 |
224,564 |
|
|
|
|
|
|
- Other |
|
30,497,890 |
|
30,497,890 |
48,750,756 |
No preferred guarantees or counter guarantees |
|
30,497,890 |
|
30,497,890 |
48,750,756 |
|
|
|
|
|
|
4. Contingent commitments |
|
17,626,067 |
|
17,626,067 |
903,787 |
|
|
|
|
|
|
TOTAL |
|
48,534,954 |
|
48,534,954 |
50,066,155 |
ALLOWANCES |
|
252,021 |
|
252,021 |
372,525 |
|
|
|
|
|
|
EXHIBIT O
DERIVATIVES
AS OF DECEMBER 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Type of contract |
|
Purpose of the Transactions |
|
Underlying Asset |
|
Type of Settlement |
|
Scope of Negotiations or Counterparty |
|
Weighted Average Term Originally Agreed |
|
Residual Weighted Average Term |
|
Weighted Average Term of Differences Settlement |
|
Amount (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REPO TRANSACTIONS (2) |
|
Financial transactions own account |
|
Other |
|
Upon maturity of differences |
|
OTC - Residents in the country - Financial sector |
|
1 |
|
1 |
|
4 |
|
1,344,220,648 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FUTURES |
|
Financial transactions own account |
|
Foreign currency |
|
Daily differences |
|
ROFEX |
|
3 |
|
2 |
|
1 |
|
161,075,745 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FUTURES |
|
Financial transactions own account |
|
Foreign currency |
|
Upon maturity of differences |
|
OTC - Residents in the country - Non-financial sector |
|
5 |
|
2 |
|
138 |
|
77,435,357 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPTIONS (3) |
|
Financial transactions own account |
|
Local government securities |
|
With delivery of underlying asset |
|
OTC - Residents in the country - Financial sector |
|
16 |
|
11 |
|
483 |
|
142,183,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Sum of absolute values in thousands of pesos of notional values negotiated. |
(2) |
Although these transactions do not correspond to derivative financial instruments, they are disclosed in this exhibit upon request of the BCRA. |
(3) |
The notional value of these options amounts to 142,183,107,297. See Notes 5 and 9 to the consolidated financial statements. |
DERIVATIVES
AS OF DECEMBER 31, 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Type of contract |
|
Purpose of the Transactions |
|
Underlying Asset |
|
Type of Settlement |
|
Scope of Negotiations or Counterparty |
|
Weighted Average Term Originally Agreed |
|
Residual Weighted Average Term |
|
Weighted Average Term of Differences Settlement |
|
Amount (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SWAPS |
|
Financial transactions own account |
|
Other |
|
Upon maturity of differences |
|
OTC - Residents in the country - Financial sector |
|
12 |
|
8 |
|
31 |
|
4,671,087 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REPO TRANSACTIONS (2) |
|
Financial transactions own account |
|
Other |
|
Upon maturity of differences |
|
OTC - Residents in the country - Financial sector |
|
1 |
|
1 |
|
3 |
|
192,338,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FUTURES |
|
Financial transactions own account |
|
Foreign currency |
|
Daily differences |
|
ROFEX |
|
3 |
|
2 |
|
1 |
|
884,399,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FUTURES |
|
Financial transactions own account |
|
Foreign currency |
|
Upon maturity of differences |
|
OTC - Residents abroad |
|
2 |
|
1 |
|
57 |
|
5,515,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FUTURES |
|
Financial transactions own account |
|
Foreign currency |
|
Upon maturity of differences |
|
OTC - Residents in the country - Non-financial sector |
|
2 |
|
1 |
|
67 |
|
425,582,552 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPTIONS (3) |
|
Financial transactions own account |
|
Local government securities |
|
With delivery of underlying asset |
|
OTC - Residents in the country - Financial sector |
|
9 |
|
5 |
|
263 |
|
14,589,362 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Sum of absolute values in thousands of pesos of notional values negotiated. |
(2) |
Although these transactions do not correspond to derivative financial instruments, they are disclosed in this exhibit upon request of the BCRA. |
(3) |
The notional value of these options amounts to 4,685,000,000. |
EXHIBIT P
CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
Accounts |
Amortized Cost |
FV through OCI |
FV through profit or loss |
Fair value hierarchy |
|
|
|
Statutory measurement |
Level 1 |
Level 2 |
Level 3 |
FINANCIAL ASSETS |
|
|
|
|
|
|
Cash and deposits in banks |
|
|
|
|
|
|
Cash |
727,271,188 |
- |
- |
- |
- |
- |
Financial institutions and correspondents |
414,540,504 |
- |
- |
- |
- |
- |
Debt securities at fair value through profit or loss |
- |
- |
225,903,834 |
223,932,573 |
1,472,552 |
498,709 |
Derivative instruments |
- |
- |
10,001,900 |
- |
10,001,900 |
- |
Repo transactions |
|
|
|
|
|
|
Argentine Central Bank (BCRA) |
1,202,421,795 |
- |
- |
- |
- |
- |
Other financial assets |
91,195,618 |
- |
- |
- |
- |
- |
Loans and other financing |
|
|
|
|
|
|
Non-financial Government sector |
145,208 |
- |
- |
- |
- |
- |
Other financial institutions |
41,049,276 |
- |
- |
- |
- |
- |
Non-financial Private Sector and Residents Abroad |
1,899,085,804 |
- |
- |
- |
- |
- |
Overdrafts |
176,515,811 |
- |
- |
- |
- |
- |
Instruments |
466,296,707 |
- |
- |
- |
- |
- |
Mortgage loans |
79,404,563 |
- |
- |
- |
- |
- |
Pledge loans |
19,855,199 |
- |
- |
- |
- |
- |
Consumer loans |
151,461,024 |
- |
- |
- |
- |
- |
Credit cards |
702,657,639 |
- |
- |
- |
- |
- |
Finance leases |
10,570,430 |
- |
- |
- |
- |
- |
Other |
292,324,431 |
- |
- |
- |
- |
- |
Other debt securities |
96,681,440 |
656,275,298 |
- |
521,874,440 |
129,710,081 |
4,690,777 |
Financial assets pledged as collateral |
124,911,353 |
136,720,428 |
- |
133,507,058 |
3,213,370 |
- |
Investments in Equity Instruments |
- |
1,984,994 |
3,225,936 |
3,225,936 |
432,216 |
1,552,778 |
TOTAL FINANCIAL ASSETS |
4,597,302,186 |
794,980,720 |
239,131,670 |
882,540,007 |
144,830,119 |
6,742,264 |
EXHIBIT P
(Continued)
CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
Accounts |
Amortized Cost |
FV through OCI |
FV through profit or loss |
Fair value hierarchy |
|
|
|
Statutory measurement |
Level 1 |
Level 2 |
Level 3 |
FINANCIAL LIABILITIES |
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
Non-financial Government sector |
34,033,530 |
- |
- |
- |
- |
- |
Financial sector |
15,113,032 |
- |
- |
- |
- |
- |
Non-financial Private Sector and Residents Abroad |
|
|
|
|
|
|
Checking accounts |
913,663,125 |
- |
- |
- |
- |
- |
Savings accounts |
1,720,509,443 |
- |
- |
- |
- |
- |
Time deposits and investments |
934,034,781 |
- |
- |
- |
- |
- |
Other |
26,832,638 |
- |
- |
- |
- |
- |
Liabilities at fair value through profit or loss |
- |
- |
10,330,335 |
- |
10,330,335 |
- |
Derivative instruments |
- |
- |
2,145,218 |
- |
2,145,218 |
- |
Repo transactions |
|
|
|
|
|
|
Other financial liabilities |
443,747,921 |
- |
- |
- |
- |
- |
Financing received from the BCRA and other financial institutions |
3,629,803 |
- |
- |
- |
- |
- |
TOTAL FINANCIAL LIABILITIES |
4,091,564,273 |
- |
12,475,553 |
- |
12,475,553 |
- |
EXHIBIT P
CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
Accounts |
Amortized Cost |
FV through OCI |
FV through profit or loss |
Fair value hierarchy |
|
|
|
Statutory measurement |
Level 1 |
Level 2 |
Level 3 |
FINANCIAL ASSETS |
|
|
|
|
|
|
Cash and deposits in banks |
|
|
|
|
|
|
Cash |
365,764,542 |
- |
- |
- |
- |
- |
Financial institutions and correspondents |
555,314,929 |
- |
- |
- |
- |
- |
Other |
281,050 |
- |
- |
- |
- |
- |
Debt securities at fair value through profit or loss |
- |
- |
79,470,642 |
12,198,634 |
67,272,008 |
- |
Derivative instruments |
- |
- |
7,063,310 |
- |
7,063,310 |
- |
Repo transactions |
|
|
|
|
|
|
Argentine Central Bank (BCRA) |
163,689,844 |
- |
- |
- |
- |
- |
Other institutions |
- |
- |
- |
- |
- |
- |
Other financial assets |
88,392,633 |
- |
- |
- |
- |
- |
Loans and other financing |
|
|
|
|
|
|
Non-financial Government sector |
4,356 |
- |
- |
- |
- |
- |
B.C.R.A. |
28,132 |
- |
- |
- |
- |
- |
Other financial institutions |
56,051,940 |
- |
- |
- |
- |
- |
Non-financial Private Sector and Residents Abroad |
2,132,430,517 |
- |
- |
- |
- |
- |
Overdrafts |
196,021,914 |
- |
- |
- |
- |
- |
Instruments |
366,489,941 |
- |
- |
- |
- |
- |
Mortgage loans |
119,922,367 |
- |
- |
- |
- |
- |
Pledge loans |
27,391,689 |
- |
- |
- |
- |
- |
Consumer loans |
221,439,467 |
- |
- |
- |
- |
- |
Credit cards |
854,924,949 |
- |
- |
- |
- |
- |
Finance leases |
17,325,619 |
- |
- |
- |
- |
- |
Other |
328,914,571 |
- |
- |
- |
- |
- |
Other debt securities |
138,659,964 |
1,870,040,724 |
- |
163,805,460 |
1,704,210,195 |
2,025,069 |
Financial assets pledged as collateral |
91,843,140 |
52,003,019 |
- |
50,408,241 |
1,594,778 |
- |
Investments in Equity Instruments |
- |
188,301 |
2,733,766 |
2,733,766 |
188,301 |
- |
TOTAL FINANCIAL ASSETS |
3,592,461,047 |
1,922,232,044 |
89,267,718 |
229,146,101 |
1,780,328,592 |
2,025,069 |
EXHIBIT P
(Continued)
CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
Accounts |
Amortized Cost |
FV through OCI |
FV through profit or loss |
Fair value hierarchy |
|
|
|
Statutory measurement |
Level 1 |
Level 2 |
Level 3 |
FINANCIAL LIABILITIES |
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
Non-financial Government sector |
30,144,496 |
- |
- |
- |
- |
- |
Financial sector |
1,894,898 |
- |
- |
- |
- |
- |
Non-financial Private Sector and Residents Abroad |
|
|
|
|
|
|
Checking accounts |
789,347,195 |
- |
- |
- |
- |
- |
Savings accounts |
1,554,277,221 |
- |
- |
- |
- |
- |
Time deposits and investments |
1,664,791,180 |
- |
- |
- |
- |
- |
Other |
32,945,855 |
- |
- |
- |
- |
- |
Derivative instruments |
- |
- |
1,041,154 |
- |
1,041,154 |
- |
Repo transactions |
|
|
|
|
|
|
Other financial liabilities |
363,440,550 |
- |
- |
- |
- |
- |
Financing received from the BCRA and other financial institutions |
9,459,257 |
- |
- |
- |
- |
- |
TOTAL FINANCIAL LIABILITIES |
4,446,300,652 |
- |
1,041,154 |
- |
1,041,154 |
- |
EXHIBIT Q
BREAKDOWN OF PROFIT OR LOSS
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
Accounts |
Net Financial Income/(Expense) |
Statutory measurement |
12.31.23 |
12.31.22 |
Due to measurement of financial assets at fair value through profit or loss |
|
|
Income from government securities |
(52,448,606) |
33,256,761 |
Income from private securities |
571,455 |
(23,051) |
Income from financial derivative instruments |
|
|
Forward transactions |
23,533,993 |
4,646,318 |
Interest rate swaps |
(177,777) |
314,816 |
Options |
(522,183) |
(107,924) |
Income from other financial assets |
1,373,985 |
61,172 |
Income from sale or write-off of financial assets at fair value |
- |
13,666,592 |
Due to measurement of financial liabilities at fair value through profit or loss |
|
|
Income/(loss) from other financial liabilities |
171 |
(16,442) |
TOTAL |
(27,668,962) |
51,798,242 |
Interest and adjustments due to application of effective interest rate of financial assets measured at amortized cost |
Financial Income/(Expense) |
12.31.23 |
12.31.22 |
Interest income |
|
|
Cash and deposits in banks |
2,284,053 |
1,601,918 |
Government securities |
42,559,543 |
44,303,243 |
Loans and other financing |
1,548,127,530 |
994,059,539 |
To the financial sector |
32,960,318 |
24,945,489 |
To the non-financial private sector |
|
|
Overdrafts |
175,988,876 |
89,605,351 |
Instruments |
332,571,766 |
123,306,207 |
Mortgage loans |
6,461,673 |
9,474,404 |
Pledge loans |
14,131,503 |
8,600,873 |
Consumer loans |
130,268,098 |
99,886,476 |
Credit cards |
280,546,581 |
194,999,904 |
Finance leases |
7,985,327 |
4,968,452 |
Other |
567,213,388 |
438,272,383 |
Repo transactions |
388,218,226 |
99,209,289 |
Argentine Central Bank (BCRA) |
387,654,578 |
99,015,567 |
Other financial institutions |
563,648 |
193,722 |
TOTAL |
1,981,189,352 |
1,139,173,989 |
Interest expense |
|
|
Deposits |
(1,514,187,446) |
(869,172,837) |
Checking accounts |
(315,022,380) |
(123,516,353) |
Savings accounts |
(7,156,496) |
(4,995,724) |
Time deposits and investments |
(1,191,995,408) |
(740,641,381) |
Other |
(13,162) |
(19,379) |
Financing received from the BCRA and other financial institutions |
(2,095,795) |
(1,663,480) |
Repo transactions |
(24,987) |
(83,678) |
Other financial institutions |
(24,987) |
(83,678) |
Other financial liabilities |
(1,033,780) |
(803,969) |
TOTAL |
(1,517,342,008) |
(871,723,964) |
EXHIBIT Q
(Continued)
BREAKDOWN OF PROFIT OR LOSS
AS OF DECEMBER 31, 2023 AND 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
|
|
Interest and adjustments due to application of the effective interest rate of financial assets at fair value through OCI |
Income for the year |
OCI |
12.31.23 |
12.31.22 |
12.31.23 |
12.31.22 |
Private debt securities |
3,463,339 |
2,064,035 |
3,750,709 |
369,707 |
Government debt securities |
1,105,549,874 |
754,308,874 |
293,253,651 |
(40,146,835) |
TOTAL |
1,109,013,213 |
756,372,909 |
297,004,360 |
(39,777,128) |
Commission income |
Income for the year |
|
|
12.31.23 |
12.31.22 |
|
|
Linked to obligations |
84,386,188 |
105,146,381 |
|
|
Linked to loans |
3,990,937 |
2,856,588 |
|
|
Linked to loan commitments and financial guarantees |
512,915 |
11,067 |
|
|
Linked to securities |
6,693,634 |
2,826,789 |
|
|
Linked to cards |
117,069,255 |
103,133,791 |
|
|
Linked to insurance |
9,635,209 |
10,964,732 |
|
|
Linked to foreign trade and exchange transactions |
10,835,312 |
10,966,990 |
|
|
TOTAL |
233,123,450 |
235,906,338 |
|
|
Commission expense |
Income for the year |
|
|
12.31.23 |
12.31.22 |
|
|
Linked to transactions with securities |
(67,420) |
(48,894) |
|
|
Linked to foreign trade and exchange transactions |
(18,507,530) |
(3,068,814) |
|
|
Other |
(99,435,495) |
(104,119,851) |
|
|
TOTAL |
(118,010,445) |
(107,237,559) |
|
|
EXHIBIT R
ADJUSTMENT TO IMPAIRMENT LOSS - ALLOWANCES FOR
LOAN LOSSES
AS OF DECEMBER 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
|
|
|
|
|
|
|
|
ECL of remaining life of the financial asset |
|
|
|
Accounts |
|
|
|
|
|
|
|
|
Balances as of 12.31.22 |
ECL for the following |
FI with significant |
FI with credit |
Monetary gain (loss) |
|
Balances as of 12.31.23 |
|
|
12 months |
increase of |
impairment |
generated by |
|
|
|
|
|
credit risk |
|
allowances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial assets |
1,296,931 |
513,555 |
- |
552,763 |
(1,124,301) |
|
1,238,948 |
|
|
|
|
|
|
|
|
Loans and other financing |
65,105,078 |
14,105,562 |
4,841,198 |
30,142,066 |
(66,417,285) |
|
47,776,619 |
Other financial institutions |
2,805,595 |
4,019,438 |
381,633 |
(2,494) |
(3,406,808) |
|
3,797,364 |
Non-financial Private Sector and Residents Abroad |
62,299,483 |
10,086,124 |
4,459,565 |
30,144,560 |
(63,010,477) |
|
43,979,255 |
Overdrafts |
3,246,275 |
1,356,943 |
899,852 |
1,045,942 |
(3,114,102) |
|
3,434,910 |
Instruments |
2,376,366 |
4,300,881 |
319,125 |
481,210 |
(3,632,912) |
|
3,844,670 |
Mortgage loans |
5,340,989 |
229,456 |
1,029,254 |
2,266,653 |
(5,558,785) |
|
3,307,567 |
Pledge loans |
462,456 |
214,485 |
36,848 |
53,088 |
(503,488) |
|
263,389 |
Consumer loans |
12,764,465 |
1,439,516 |
1,254,128 |
9,484,268 |
(15,295,786) |
|
9,646,591 |
Credit cards |
31,438,695 |
4,526,241 |
539,977 |
13,571,199 |
(30,970,384) |
|
19,105,728 |
Finance leases |
593,004 |
172,754 |
115,708 |
194,474 |
(606,111) |
|
469,829 |
Other |
6,077,233 |
(2,154,152) |
264,673 |
3,047,726 |
(3,328,909) |
|
3,906,571 |
|
|
|
|
|
|
|
|
Other debt securities |
99,921 |
103,724 |
- |
- |
(105,617) |
|
98,028 |
|
|
|
|
|
|
|
|
Contingent commitments |
8,389,890 |
4,438,401 |
241,177 |
170,203 |
(7,267,301) |
|
5,972,370 |
|
|
|
|
|
|
|
|
TOTAL ALLOWANCES |
74,891,820 |
19,161,242 |
5,082,375 |
30,865,032 |
(74,914,504) |
|
55,085,965 |
ADJUSTMENT TO IMPAIRMENT LOSS - ALLOWANCES FOR
LOAN LOSSES
AS OF DECEMBER 31, 2022
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
|
|
|
|
|
|
|
|
|
|
|
ECL of remaining life of the financial asset |
|
|
|
Accounts |
Balances |
ECL for the |
|
|
Monetary |
|
Balances |
|
as of 12.31.21 |
following |
FI with significant |
FI with credit |
gain (loss) |
|
as of 12.31.22 |
|
|
12 months |
increase of |
impairment |
generated by |
|
|
|
|
|
credit risk |
|
allowances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial assets |
1,566,128 |
389,416 |
- |
302,599 |
(961,212) |
|
1,296,931 |
|
|
|
|
|
|
|
|
Loans and other financing |
81,604,649 |
11,544,237 |
9,116,911 |
3,028,707 |
(40,189,426) |
|
65,105,078 |
Other financial institutions |
1,998,089 |
1,763,248 |
571,427 |
(8,377) |
(1,518,792) |
|
2,805,595 |
Non-financial Private Sector and Residents Abroad |
79,606,560 |
9,780,989 |
8,545,484 |
3,037,084 |
(38,670,634) |
|
62,299,483 |
Overdrafts |
1,951,484 |
1,627,569 |
651,617 |
1,034,736 |
(2,019,131) |
|
3,246,275 |
Instruments |
3,645,587 |
578,505 |
(65,211) |
(49,962) |
(1,732,553) |
|
2,376,366 |
Mortgage loans |
4,459,281 |
202,657 |
820,206 |
2,641,310 |
(2,782,465) |
|
5,340,989 |
Pledge loans |
600,901 |
137,775 |
1,881 |
69,141 |
(347,242) |
|
462,456 |
Consumer loans |
15,576,157 |
1,171,116 |
(53,064) |
4,217,686 |
(8,147,430) |
|
12,764,465 |
Credit cards |
29,507,111 |
4,164,196 |
9,211,574 |
4,757,695 |
(16,201,881) |
|
31,438,695 |
Finance leases |
570,007 |
103,306 |
25,657 |
195,557 |
(301,523) |
|
593,004 |
Other |
23,296,032 |
1,795,865 |
(2,047,176) |
(9,829,079) |
(7,138,409) |
|
6,077,233 |
|
|
|
|
|
|
|
|
Other debt securities |
91,656 |
71,844 |
- |
- |
(63,579) |
|
99,921 |
|
|
|
|
|
|
|
|
Contingent commitments |
5,178,233 |
4,276,172 |
1,987,018 |
104,477 |
(3,156,010) |
|
8,389,890 |
|
|
|
|
|
|
|
|
TOTAL ALLOWANCES |
88,440,666 |
16,281,669 |
11,103,929 |
3,435,783 |
(44,370,227) |
|
74,891,820 |
PROJECT FOR THE DISTRIBUTION OF EARNINGS
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2023
(Amounts stated in thousands of Argentine pesos
in constant currency – Note 2.1.5. to the consolidated financial statements)
(Translation of Financial statements originally
issued in Spanish – See Note 40)
RETAINED EARNINGS (1) |
|
|
|
|
473,978,162 |
|
|
|
|
|
|
|
|
To Legal Reserve |
|
|
|
|
(32,908,380) |
|
|
|
|
|
|
|
|
SUBTOTAL 1 |
|
|
|
|
441,069,782 |
|
|
|
|
|
|
|
|
Other Comprehensive Income |
|
|
|
|
(158,900,516) |
|
Difference between measurement at amortized cost and at fair market value of government debt securities measured at amortized cost |
|
(117,236) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUBTOTAL 2 |
|
|
|
|
282,052,030 |
|
|
|
|
|
|
|
|
DISTRIBUTABLE BALANCE (2) (3) |
|
|
|
|
282,052,030 |
|
|
|
|
|
|
|
|
To cash dividends |
|
|
|
|
- |
|
|
|
|
|
|
|
|
To unappropriated retained earnings |
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) It includes Optional Reserve for future distributions of earnings in the amount of 309,436,264. |
|
|
|
|
|
|
|
(2) Pursuant to Section 3 - Verification of Liquidity and Solvency and Section 4 - Additional Margins of Capital of revised Text on Distribution of Earnings. |
|
|
|
|
|
|
|
(3) The Board of Directors has decided to postpone the proposal
for allocating income for fiscal year 2023 until the next Annual and Extraordinary Shareholders’ Meeting.
The distribution of earnings is contingent upon the approval of
the Annual Extraordinary Shareholders’ Meeting. Prior approval of the BCRA is required (Note 43 to the Consolidated Financial Statements).
This project for the distribution of earnings may vary in accordance with the aforementioned authorizations. |
This reporting summary was prepared on the basis
of the consolidated financial statements of the Bank prepared in accordance with the financial reporting framework set forth by the BCRA.
(Communication “A” 6114 as supplemented by the BCRA). Except for the exceptions established by the BCRA which are explained
in the following paragraph, such framework is based on International Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board (IASB) and adopted by the Argentine Federation of Professionals Councils in Economic Sciences (FACPCE, for
its acronym in Spanish). The abovementioned international standards include the IFRS, the International Accounting Standards (IAS) and
the interpretations developed by the IFRS Interpretations Committee (IFRIC) or former IFRIC (SIC).
Out of the exceptions set forth by the BCRA to the
application of current IFRS, the following affect the preparation of these consolidated financial statements:
| a) | Within the framework of the convergence process
to IFRS established by Communication “A” 6114, as amended and supplemented, the BCRA provided that for fiscal years starting
on or after January 1, 2020, financial institutions defined as “Group A” according to BCRA regulations, as such is the case
of the Entity, are required to start to apply paragraph 5.5 “Impairment” of IFRS 9 “Financial Instruments” (paragraphs
B5.5.1 through B5.5.55) except for exposures to the public sector, considering the exclusion set forth by Communication “A”
6847. |
Had the abovementioned paragraph 5.5. “Impairment”
been applied in full, according to a global estimate made by the Entity, as of December 31, 2023 and 2022, its shareholders’ equity
would have been reduced by 9,360,898 and 13,958,955, respectively.
| b) | In March 2022, the transfer
of the equity instruments corresponding to the remaining interest in Prisma Medios de Pago S.A. was made, which instruments were measured
at fair value as set forth in Memorandum dated April 29, 2019 and March 22, 2021 received by the BCRA, and the income (loss) from their
sale was recorded in the quarter ended March 31, 2022. Had the IFRS been applied in order to determine the fair value above mentioned,
the income (loss) for the fiscal year ended December 31, 2022 would have changed. However, this situation did not generate differences
as regards the shareholders’ equity value as of December 31, 2022. |
Except for what was mentioned in the previous paragraphs,
the accounting policies applied by the Entity comply with the IFRS that have been currently approved and are applicable in the preparation
of these consolidated financial statements in accordance with the IFRS as adopted by the BCRA as per Communication “A” 7899.
In general, the BCRA does not allow the early application of any IFRS, unless otherwise specified.
These financial statements as of December 31, 2023
have been approved by the Board of Directors of Banco BBVA Argentina S.A. on March 5, 2024.
Likewise, the BCRA by means of Communications "A"
6323 and 6324 established guidelines for the preparation and presentation of financial statements of financial entities as from fiscal
years beginning on January 1, 2018, including additional information requirements as well as the information to be presented in the form
of Exhibits.
As a consequence of the application of those standards,
the Bank prepares its financial statements according to the new financial reporting framework set forth by the BCRA as of December 31,
2023 and 2022.
Banco BBVA Argentina S.A. (NYSE;
MAE; BYMA: BBAR; Latibex: XBBAR) is a subsidiary of the BBVA Group, its majority shareholder since 1996. In Argentina, it has been one
of the major financial institutions since 1886. BBVA Argentina offers retail and corporate banking services to a broad customer base,
including individuals, small-to-medium sized companies, and large corporations. As of December 31, 2023, the Entity's total assets, liabilities
and shareholders' equity amounted to 6,124,509,885; 4,700,372,294; and 1,406,169,509; respectively.
The Entity offers its products and services through
a wide multi-channel distribution network with presence in all the provinces in Argentina and the City of Buenos Aires, with more than
4.1 million active customers as of December 31, 2023. That network includes 243 branches providing services to the retail segment and
also to small and medium sized-enterprises and organizations.
Corporate Banking is divided by industry sector:
Consumers, Heavy Industries and Energy, providing customized services for large companies. To supplement the distribution network, the
Entity has 895 ATMs, 861 self-service terminals, 15 in-company banks, two points of Customer service booths. Moreover, it has a telephone
banking service, a modern, safe and functional Internet banking platform and a mobile banking app. As regards payroll, Banco BBVA Argentina
S.A. has 6,009 employees, including 91 employees of BBVA Asset Management Argentina S.A.U., PSA Finance Argentina Compañía
Financiera S.A. and Volkswagen Financial Services Compañía Financiera S.A. (active employees at the end of the month, including
structural, temporary and expatriate employees).
The loan portfolio net of allowance for loan losses
totaled $ 1,975,497,390 as of December 31, 2023, reflecting an 11.53% decrease as compared to the previous year.
As it relates to consumer loans, including pledge
loans, credit cards, mortgage loans and consumer loans, the latter jointly with credit cards decreased the least, by 31.65% in the case
of consumer loans and 17.81% in credit cards, compared with December 31, 2022.
Banco BBVA Argentina S.A.'s consolidated market
share in private-sector financing was 9.85% at fiscal year- end, based on the BCRA's daily information (principal balance as of the last
day of each consolidated quarter).
In terms of portfolio quality, the Bank managed
to obtain very good ratios. As for the nonperforming portfolio (nonperforming financing/total financing) stood at 1.29%, with a 165.30%
hedge level (total allowances/nonperforming financing) as of December 31, 2023.
The exposure for securities as of December 31, 2023
totaled $ 2,186,276,845, including repos.
In terms of liabilities, customers’ resources
totaled $ 3,639,306,660, with an 11.05% decrease over the last twelve months.
Banco BBVA Argentina S.A.'s consolidated market share
in private-sector financing was 6.79% at fiscal year- end, based on the information provided by the BCRA on a daily basis (principal amount
as of the last day of each quarter).
Breakdown of changes in the
main income/loss items
Banco BBVA Argentina S.A. recorded an accumulated
profit of 164,939,130 as of December 31, 2023, representing a return on average shareholders' equity of 13.01%, a return on average assets
of 2.69%, and a return on average liabilities of 3.41%.
Accumulated net interest income totaled 1,628,931,525,
up by 54.10% compared to December 2022. Such increase was driven by increased income from government securities, premiums from reverse
repo transactions, offset by an increase in interest on term deposits and checking accounts.
Accumulated net commission income totaled 138,955,349
accounting for a 4.54% decrease compared to December 2022. This decrease was due to lower commissions linked to liabilities and an increase
in commissions linked to foreign trade transactions.
As concerns accumulated administrative expenses and
personnel benefits totaled 497,566,179, up by 17.38% vis-a-vis December 2022. This increase was due to higher expenses for other short-term
personnel benefits, remunerations, IT expenses and administrative services hired.
Outlook
The year 2023 ends with a new elected government,
which has announced an adjustment plan to start correcting the strong macroeconomic distortions, which, among other measures, includes
a significant reduction of the fiscal deficit and a depreciation of the local currency to ease FX restrictions. In a context in which
uncertainty remains high, BBVA Research estimates an annual inflation near 175% for 2024 (versus 211% at the end of 2023) and expects
GDP to fall around 4.0% this year (versus an estimated 3% drop in 2023). The brunt of the recession and inflationary acceleration is expected
to happen in the first half of the year, while expectations improve for the second half of the year. Despite their short-term impact and
the high associated risks, these adjustments could lay the basis for a sustained reduction in inflation and a recovery in the economy's
potential growth from mid-2024 onwards.
As of December 2023, private credit in pesos for
the system grew 133% YoY, while BBVA Argentina increased its peso-denominated private loan portfolio by 156%. Neither the system nor BBVA
managed to outpace inflation (which reached 211.4% YoY as of December 2023) in terms of YoY growth. However, the Bank's consolidated market
share of rose 75 bps from 9.10% to 9.85% YoY. In terms of consolidated private deposits, the system grew 171% while the Bank grew 177%,
without exceeding the level of inflation in both cases. BBVA Argentina's consolidated market share of private deposits was 6.79%, higher
than the 6.64% of the previous year.
BBVA Argentina continues to actively monitor its
business, financial conditions and operating results, and considers that it maintains a competitive position to continue facing the challenges
posed by the context. The Bank has a low cost of funding thanks to the adequate composition of deposits, a solid capital and liquidity
position, and an optimal portfolio quality in relation to the financial system.
With respect to ESG, BBVA Argentina has a corporate
responsibility with society, inherent to the Bank's business model, which promotes financial inclusion and education and supports scientific
research and culture. The Bank operates with the utmost integrity, long-term vision and best practices, and is present through the BBVA
Group in the main sustainability indices.
With
regards to digitization, our service offering has evolved in such a way that by the end of December 2023, mobile monetary transactions
grew by 138% YoY. Throughout the year, the acquisition of new customers through digital channels exceeded traditional channels by 75%,
whereas in 2022 it was approximately 72%.
The
objective for 2024 will be to maintain the robustness that the Bank has been able to develop, within the framework of a decisive year
for Argentina.
CONSOLIDATED BALANCE SHEET STRUCTURE COMPARATIVE |
WITH THE SAME PERIODS OF PREVIOUS FISCAL YEARS |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.31.23 |
|
12.31.22 |
|
12.31.21 |
|
12.31.20 |
|
12.31.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
6,124,509,885 |
|
6,099,931,992 |
|
6,249,127,614 |
|
6,299,086,790 |
|
5,629,285,426 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
4,700,372,294 |
|
4,960,547,981 |
|
5,262,728,409 |
|
5,349,101,455 |
|
4,683,726,033 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ Equity Parent |
|
1,406,169,509 |
|
1,122,557,893 |
|
966,948,947 |
|
930,408,080 |
|
925,896,162 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ Equity Minority interest |
|
17,968,082 |
|
16,826,118 |
|
19,450,258 |
|
19,577,255 |
|
19,663,231 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities + Shareholders’ Equity Parent |
|
|
|
|
|
|
|
|
|
|
+ Shareholders’ Equity Minority interest |
|
6,124,509,885 |
|
6,099,931,992 |
|
6,249,127,614 |
|
6,299,086,790 |
|
5,629,285,426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF INCOME STRUCTURE COMPARATIVE |
WITH THE SAME PERIODS OF PREVIOUS FISCAL YEARS |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.31.23 |
|
12.31.22 |
|
12.31.21 |
|
12.31.20 |
|
12.31.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
1,628,931,525 |
|
1,057,035,728 |
|
751,227,218 |
|
712,861,795 |
|
830,246,481 |
|
|
|
|
|
|
|
|
|
|
Net commission income |
138,955,349 |
|
145,559,878 |
|
143,566,306 |
|
112,069,842 |
|
101,946,182 |
|
|
|
|
|
|
|
|
|
|
Net income/(loss) from measurement of financial instruments at fair value through profit or loss |
(23,988,470) |
|
56,603,987 |
|
26,475,310 |
|
72,479,542 |
|
115,125,956 |
Net income/(loss) from write-down of assets at amortized cost and at fair value through OCI |
40,590,622 |
|
902,916 |
|
(741,850) |
|
(21,149,225) |
|
(754,013) |
Foreign exchange and gold gains |
210,110,057 |
|
25,152,175 |
|
33,602,885 |
|
57,021,504 |
|
134,593,142 |
Other operating income |
67,247,917 |
|
65,900,295 |
|
49,083,232 |
|
57,478,069 |
|
161,263,423 |
Loan loss allowance |
(76,381,809) |
|
(60,663,174) |
|
(50,149,650) |
|
(90,918,636) |
|
(168,480,769) |
|
|
|
|
|
|
|
|
|
|
Net operating income |
1,985,465,191 |
|
1,290,491,805 |
|
953,063,451 |
|
899,842,891 |
|
1,173,940,402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel benefits |
(248,101,319) |
|
(211,685,720) |
|
(189,936,972) |
|
(186,041,759) |
|
(207,624,728) |
Administrative expenses |
(249,464,860) |
|
(212,197,280) |
|
(196,733,584) |
|
(172,313,845) |
|
(174,440,335) |
Asset depreciation and impairment |
(28,677,320) |
|
(34,171,257) |
|
(33,858,786) |
|
(37,228,417) |
|
(52,450,874) |
Other operating expenses |
(264,304,110) |
|
(191,471,115) |
|
(161,953,336) |
|
(150,347,286) |
|
(273,964,976) |
|
|
|
|
|
|
|
|
|
|
Operating income |
1,194,917,582 |
|
640,966,433 |
|
370,580,773 |
|
353,911,584 |
|
465,459,489 |
|
|
|
|
|
|
|
|
|
|
Income/(loss) from associates and joint ventures |
1,156,636 |
|
(1,452,699) |
|
(253,883) |
|
2,498,518 |
|
(264,415) |
|
|
|
|
|
|
|
|
|
|
Loss on net monetary position |
(894,047,649) |
|
(446,887,307) |
|
(242,440,074) |
|
(180,341,796) |
|
(193,342,213) |
|
|
|
|
|
|
|
|
|
|
Income before income tax from continuing activities |
302,026,569 |
|
192,626,427 |
|
127,886,816 |
|
176,068,306 |
|
271,852,861 |
|
|
|
|
|
|
|
|
|
|
Income tax from continuing activities |
(137,087,439) |
|
(12,215,432) |
|
483,922 |
|
(75,077,386) |
|
(91,403,900) |
|
|
|
|
|
|
|
|
|
|
Net income from continuing activities |
164,939,130 |
|
180,410,995 |
|
128,370,738 |
|
100,990,920 |
|
180,448,961 |
|
|
|
|
|
|
|
|
|
|
Net income for the year |
164,939,130 |
|
180,410,995 |
|
128,370,738 |
|
100,990,920 |
|
180,448,961 |
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME STRUCTURE COMPARATIVE |
WITH THE SAME PERIODS OF PREVIOUS FISCAL YEARS |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
|
|
|
|
|
|
|
|
|
|
|
12.31.23 |
|
12.31.22 |
|
12.31.21 |
|
12.31.20 |
|
12.31.19 |
|
|
|
|
|
|
|
|
|
|
Net income for the year |
|
164,939,130 |
|
180,410,995 |
|
128,370,738 |
|
100,990,920 |
|
180,448,961 |
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income components to be reclassified to income/(loss) for the year: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share in Other Comprehensive Income from associates and joint ventures at equity method |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(Loss) for the year on the Share in Other Comprehensive Income from associates and joint ventures at equity method |
|
- |
|
339,486 |
|
(21,612) |
|
(1,988,943) |
|
(717,553) |
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
339,486 |
|
(21,612) |
|
(1,988,943) |
|
(717,553) |
|
|
|
|
|
|
|
|
|
|
|
Income/(Loss) from hedge instruments - Hedge of cash flows |
|
|
|
|
|
|
|
|
|
|
Loss for the year from hedge instrument |
|
- |
|
- |
|
- |
|
- |
|
(306,560) |
Income Tax |
|
- |
|
- |
|
- |
|
- |
|
77,569 |
|
|
- |
|
- |
|
- |
|
- |
|
(228,991) |
|
|
|
|
|
|
|
|
|
|
|
Profit or losses from financial instruments at fair value through OCI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit or losses from financial instruments at fair value through OCI |
|
332,484,908 |
|
(38,803,362) |
|
4,172,168 |
|
45,660,472 |
|
(62,059,223) |
Reclassification adjustment for the year |
|
(34,816,740) |
|
(847,700) |
|
649,072 |
|
21,149,124 |
|
754,003 |
Income Tax |
|
(101,429,706) |
|
11,851,492 |
|
(1,211,708) |
|
(18,955,711) |
|
17,303,943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
196,238,462 |
|
(27,799,570) |
|
3,609,532 |
|
47,853,885 |
|
(44,001,277) |
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income components not to be reclassified to income/(loss) for the year: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income or loss on equity instruments at fair value through OCI (IFRS 9, paragraph 5.7.5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) for the year from equity instruments at fair value through OCI |
|
1,383,754 |
|
(117,926) |
|
(79,119) |
|
(149,956) |
|
(61,180) |
Income Tax |
|
- |
|
- |
|
- |
|
16,414 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,383,754 |
|
(117,926) |
|
(79,119) |
|
(133,542) |
|
(61,180) |
|
|
|
|
|
|
|
|
|
|
|
Total Other Comprehensive Income/(loss) for the year |
|
197,622,216 |
|
(27,578,010) |
|
3,508,801 |
|
45,731,400 |
|
(45,009,001) |
|
|
|
|
|
|
|
|
|
|
|
Total Comprehensive Income |
|
362,561,346 |
|
152,832,985 |
|
131,879,539 |
|
146,722,320 |
|
135,439,960 |
|
|
|
|
|
|
|
|
|
|
|
Total Comprehensive Income: |
|
|
|
|
|
|
|
|
|
|
Attributable to owners of the Parent |
|
361,488,852 |
|
155,575,311 |
|
132,006,471 |
|
146,836,408 |
|
135,584,386 |
Attributable to non-controlling interests |
|
1,072,494 |
|
(2,742,326) |
|
(126,932) |
|
(114,088) |
|
(144,426) |
CONSOLIDATED CASH FLOW STRUCTURE COMPARATIVE |
WITH THE SAME PERIODS OF PREVIOUS FISCAL YEARS |
(Amounts stated in thousands of Argentine pesos in constant currency –Note 2.1.5.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.31.23 |
|
12.31.22 |
|
12.31.21 |
|
12.31.20 |
|
12.31.19 |
|
|
|
|
|
|
|
|
|
|
|
Total cash flows generated/(used in) by operating activities |
|
601,577,255 |
|
352,060,027 |
|
707,972,182 |
|
(123,708,668) |
|
555,190,706 |
|
|
|
|
|
|
|
|
|
|
|
Total cash flows used in investing activities |
|
(42,924,658) |
|
(84,555,620) |
|
(45,480,055) |
|
(21,767,207) |
|
(1,426,790) |
|
|
|
|
|
|
|
|
|
|
|
Total cash flows used in financing activities |
|
(26,613,636) |
|
(26,463,890) |
|
(32,560,024) |
|
(65,061,837) |
|
(42,806,443) |
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes |
|
572,860,171 |
|
3,774,581 |
|
(139,723,892) |
|
95,840,340 |
|
191,158,072 |
|
|
|
|
|
|
|
|
|
|
|
Effect of net monetary income/(loss) of cash and cash equivalents |
|
(884,620,723) |
|
(646,610,824) |
|
(558,451,947) |
|
(440,384,121) |
|
(654,704,099) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash generated/(used in)during the year |
|
220,278,409 |
|
(401,795,726) |
|
(68,243,736) |
|
(555,081,493) |
|
47,411,446 |
|
|
|
|
|
|
|
|
|
|
|
STATISTICAL DATA COMPARATIVE |
WITH THE SAME PERIODS OF PREVIOUS FISCAL YEARS |
(Variation of balances over the previous fiscal year) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.31.23 /
12.31.22 |
|
12.31.22 /
12.31.21 |
|
12.31.21 /
12.31.20 |
|
12.31.20 /
12.31.19 |
|
|
|
|
|
|
|
|
|
Total loans
|
|
-11.53 % |
|
-2.88 % |
|
-10.10 % |
|
5.08 % |
|
|
|
|
|
|
|
|
|
Total deposits
|
|
-11.05 % |
|
-4.78 % |
|
5.49 % |
|
11.15 % |
|
|
|
|
|
|
|
|
|
Income/(loss)
|
|
-8.58 % |
|
40.54 % |
|
27.11 % |
|
-44.03 % |
|
|
|
|
|
|
|
|
|
Shareholders' Equity
|
|
24.99 % |
|
15.51 % |
|
3.83 % |
|
0.47 % |
|
|
RATIOS COMPARATIVE |
|
|
WITH THE SAME PERIODS OF PREVIOUS FISCAL YEARS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.31.23 |
|
12.31.22 |
|
12.31.21 |
|
12.31.20 |
|
12.31.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Solvency (a) |
|
30.30 % |
|
22.97 % |
|
18.74 % |
|
17.76 % |
|
20.19 % |
|
|
|
|
|
|
|
|
|
|
|
Liquidity(b) |
|
91.23 % |
|
77.31 % |
|
76.37 % |
|
67.45 % |
|
69.89 % |
|
|
|
|
|
|
|
|
|
|
|
Tied-up capital(c) |
|
27.65 % |
|
34.45 % |
|
35.69 % |
|
36.08 % |
|
37.82 % |
|
|
|
|
|
|
|
|
|
|
|
Indebtedness (d) |
|
3.30 |
|
4.35 |
|
5.34 |
|
5.63 |
|
4.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Shareholders’ Equity/Liabilities. |
(b) Sum of cash and deposits in banks, debt securities at fair value through profit or loss (excluding private securities), net repo transactions and other debt securities/deposits. |
(c) Sum of property and equipment, miscellaneous assets and intangible assets/Shareholders’ Equity. |
(d) Total liabilities/Shareholders' Equity. |
|
Pistrelli, Henry Martin y Asociados S.R.L.
25 de mayo 487 - C1002ABI
Buenos Aires, Argentina |
Tel: (54-11) 4318-1600/4311-6644
Fax: (54-11) 4318-1777/4510-2220
ey.com |
|
|
|
AUDIT REPORT ISSUED BY THE INDEPENDENT AUDITOR ON
THE CONSOLIDATED FINANCIAL STATEMENTS
To the Directors of
BANCO BBVA ARGENTINA S.A.
CUIT (Argentine taxpayer identification number): 30-50000319-3
Registered office: Av. Córdoba 111
City of Buenos Aires
I. Report on the audit of the financial statements
Opinion
| 1. | We have audited the accompanying
consolidated financial statements of BANCO BBVA ARGENTINA S.A. (the “Bank”) and its subsidiaries, which comprise: (a) the
consolidated statement of financial position as of December 31, 2023, (b) the consolidated statements of income and other comprehensive
income, the changes in shareholders´ equity, and cash flows for the fiscal year then ended, and (c) explanatory information on the
financial statements, including significant accounting policies in the context of the financial statements taken as a whole, and other
explanatory information included in the supplementing notes and exhibits. |
| 2. | In our opinion, the accompanying
consolidated financial statements present fairly, in all material respects, the financial position of BANCO BBVA ARGENTINA S.A. and its
subsidiaries as of December 31, 2023, as well as its comprehensive income, the changes in shareholder´s equity and cash flows for
the year then ended, in accordance with the accounting information framework established by the Central Bank of Argentina (“BCRA”),
as indicated in the section “Responsibility of the Bank’s Management and Board of Directors in connection with the financial
statements”. |
Basis of the opinion
| 3. | We have performed our audit in
accordance with auditing standards established by Argentine Federation of Professional Councils in Economic Sciences (“FACPCE”
for its Spanish acronym) Technical Resolution No. 37 and with the “Minimum standards on external audits” issued by the BCRA.
Our responsibilities under those standards are described below in the section “Auditor's Responsibilities in Connection with the
Audit of Financial Statements”. We are independent of the Bank and we have complied with the rest of the ethics responsibilities
in accordance with the Code of Ethics of the CPCECABA (Professional Council in Economic Sciences of the City of Buenos
Aires) and FACPCE Technical Resolution No.
37. We consider that the judgmental evidence we have obtained is sufficient and appropriate basis for our opinion. |
A member firm of Ernst & Young Global Limited |
| Pistrelli, Henry Martin y Asociados S.R.L. 25 de mayo 487 - C1002ABI Buenos Aires, Argentina | Tel: (54-11) 4318-1600/4311-6644 Fax: (54-11) 4318-1777/4510-2220 ey.com |
| | |
Emphasis on certain aspects disclosed in the
financial statements
| 4. | We draw attention to the information
contained in the following notes to the accompanying financial statements: |
| a) | Note 2. “Basis for the
presentation of these financial statements and applicable accounting standards” in which the Bank quantifies the effects on the
financial statements of the application of section 5.5 “Impairment in value” of International Financial Reporting Standard
("IFRS") 9 “Financial instruments” to financial assets that include exposures to the public sector, which were temporarily
excluded from that application by Communication "A" 6847 of the BCRA. |
| b) | Note 2. “Basis for the
presentation of these financial statements and applicable accounting standards” in relation to the measurement in the remaining
investment in Prisma Medios de Pago S.A, in which the Bank states that: (i) in March 2022 there was the transfer of equity instruments
that were measured at fair value determined in accordance with the memorandums dated April 29, 2019, and March 22, 2021, received from
the BCRA, and (ii) if IFRS had been applied for the purposes of determining the fair value, the results for the year ended December 31,
2022 would have been modified. However, this matter did not generate any differences as to the shareholders´equity value as of such
date. |
These aspects do not modify the opinion
expressed in paragraph 2, but must be taken into account by those users who use IFRS in the interpretation of the financial statements
mentioned in paragraph 1.
Information other than the financial statements
and the related auditor´s report (“Other information”)
| 5. | Other information comprises the
information included in the Reporting Summary submitted to comply with the National Securities Commission ("CNV") regulations,
and in the Board of Directors’ Letter to the Shareholders. This information is separate from the financial statements and our related
auditor´s report. The Board of Directors is responsible for the other information. |
A member firm of Ernst & Young Global Limited |
| Pistrelli, Henry Martin y Asociados S.R.L. 25 de mayo 487 - C1002ABI Buenos Aires, Argentina | Tel: (54-11) 4318-1600/4311-6644 Fax: (54-11) 4318-1777/4510-2220 ey.com |
| | |
Our opinion
on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection
with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider
whether theother information is material inconsistent with the financial statements or knowledge obtained by us in the audit, or whether
for any other reason there appears to be a material misstatement. If, based on the work we have performed, we conclude, in what is within
our competence, that there is a significant inaccuracy in the other information, we are obliged to report it. We have nothing to report
in this regard.
Other matters
| 6. | We issued a separate audit report
on the separate financial statements of BANCO BBVA ARGENTINA S.A. as of the same date and for the same period indicated in paragraph 1.
|
Responsibility of the Bank’s Management and
Board of Directors in connection with the financial statements
| 7. | The Bank´s Board of Directors
and Management are responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the
accounting reporting framework established by the BCRA which, as indicated in note 2 to the financial statements mentioned in paragraph
1, is based on IFRS, as issued by the International Accounting Standards Board ("IASB") and adopted by FACPCE, and subject to
the exceptions and temporary provisions established by the BCRA and explained in such note. Likewise, the Bank´s Board of Directors
and Management are also responsible for the internal control that they deem necessary to allow the preparation of consolidated financial
statements free of material misstatements, due to fraud or error. |
In preparing
the consolidated financial statements, the Board of Directors and Management are also responsible for assessing the Bank’s ability
to continue as a going concern and disclosing, as the case may be, the issues related to going concern and using the going concern accounting
principle, except if the Board of Directors intends to liquidate the Bank or interrupt its operations, or if there is no other realistic
alternative.
A member firm of Ernst & Young Global Limited |
| Pistrelli, Henry Martin y Asociados S.R.L. 25 de mayo 487 - C1002ABI Buenos Aires, Argentina | Tel: (54-11) 4318-1600/4311-6644 Fax: (54-11) 4318-1777/4510-2220 ey.com |
| | |
Auditor's responsibilities in connection with the
audit of Financial Statements
| 8. | Our goals are obtaining reasonable
assurance that the consolidated financial statements taken as a whole are free from material misstatements, due to fraud or error and
to issue an auditor´s report including our opinion. Reasonable assurance is a high degree of assurance, but it does not guarantee
that an audit performed in accordance with FACPCE Technical Resolution No. 37 and with the “Minimum Standards on External Audits”
issued by the BCRA will always detect a material misstatement when it exists. Material misstatements could be due to fraud or error and
they are deemed material if, individually or in the aggregate, they may be reasonably expected to affect the economic decisions taken
by users based on the consolidated financial statements. |
As part of an
audit performed in accordance with FACPCE Technical Resolution No. 37 and the “Minimum Standards on External audits” issued
by the BCRA, we applied our professional judgment and we maintain professional skepticism throughout the audit. We also:
| · | Identify and assess risks of
material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of no detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. |
| · | Obtain an understanding of internal
control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Bank’s internal control. |
| · | Evaluate the appropriateness
of the accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors
and Management. |
| · | Conclude on the appropriateness
of the Board’s of Directors and Management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubts on the Bank’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's
report to the related disclosures in the consolidated financial statements or, if such information is inadequate, to modify an opinion.
Our conclusions are based on the audit evidence obtained up to the date of auditor’s report. However, future events or conditions
may cause the Bank to cease to continue as a going concern. |
A member firm of Ernst & Young Global Limited |
| Pistrelli, Henry Martin y Asociados S.R.L. 25 de mayo 487 - C1002ABI Buenos Aires, Argentina | Tel: (54-11) 4318-1600/4311-6644 Fax: (54-11) 4318-1777/4510-2220 ey.com |
| | |
| · | Evaluate the overall presentation,
structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements
represent the underlying transactions and events in a manner that achieves fair presentation. |
We
communicate with the Board of Directors and Management regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
II. Report on other legal and regulatory requirements
In compliance
with current legal requirements, we further report that:
| a) | The financial statements mentioned
in paragraph 1 are being transcribed to the Book of Balance Sheets for Publication of BANCO BBVA ARGENTINA S.A. and, in our opinion, have
been prepared, in all material respects, in conformity with the applicable provisions of Argentine General Business Associations Law,
and with CNV regulations. |
| b) | The separate financial statements
of BANCO BBVA ARGENTINA as of December 31, 2023, are being transcribed into the Book of Balance Sheets for Publication and result from
books kept, in their formal respects, in conformity with current regulations as mentioned in note 2.7. to the consolidated financial statements,
and under the conditions established in Resolution No. DI-2021-6-APN-GRC#CNV of the CNV dated February 25, 2021. |
| c) | As of December 31, 2023, the
liabilities accrued from employee and employer contributions to the Integrated Pension Fund System, as recorded in the Bank’s books,
amounted to ARS 2,185,374,132, none of which was due and payable as of that date. |
| d) | As of December 31, 2023, as stated
in note 47 to the consolidated financial statements as of such date, the Bank has equity and a counterpart in eligible assets that exceed
the minimum amounts required by the relevant CNV standards for such items. |
A member firm of Ernst & Young Global Limited |
| Pistrelli, Henry Martin y Asociados S.R.L. 25 de mayo 487 - C1002ABI Buenos Aires, Argentina | Tel: (54-11) 4318-1600/4311-6644 Fax: (54-11) 4318-1777/4510-2220 ey.com |
| | |
| e) | During the fiscal year ended
December 31, 2023, we invoiced fees for audit services provided to BANCO BBVA ARGENTINA S.A., which represent 99.7% of the total invoiced
to the Bank for all concepts. Likewise, we inform that these fees represent 65.5% of the total audit services and 65.4% of the total services
for all concepts, in both cases invoiced to the Bank and its related companies. |
City of Buenos Aires
March 5, 2024
PISTRELLI, HENRY MARTIN Y ASOCIADOS S.R.L. |
C.P.C.E.C.A.B.A. Vol. 1 – Fo. 13 |
|
|
|
JAVIER J. HUICI |
Partner |
Certified Public Accountant (U.B.A.) |
C.P.C.E.C.A.B.A. Vol. 272 – Fo. 27 |
A member firm of Ernst & Young Global Limited |
| Pistrelli, Henry Martin y Asociados S.R.L. 25 de mayo 487 - C1002ABI Buenos Aires, Argentina | Tel: (54-11) 4318-1600/4311-6644 Fax: (54-11) 4318-1777/4510-2220 ey.com |
| | |
AUDIT REPORT ISSUED BY THE INDEPENDENT AUDITOR ON
THE SEPARATE FINANCIAL STATEMENTS
To the Directors of
BANCO BBVA ARGENTINA S.A.
CUIT (Argentine taxpayer identification number): 30-50000319-3
Registered office: Av. Córdoba 111
City of Buenos Aires
I. Report on the audit of the financial statements
Opinion
| 1. | We have audited the accompanying
separate financial statements of BANCO BBVA ARGENTINA S.A. (the “Bank”) and its subsidiaries, which comprise: (a) the separate
statement of financial position as of December 31, 2023, (b) the separate statements of income and other comprehensive income, the changes
in shareholders´ equity, and cash flows for the fiscal year then ended, and (c) explanatory information on the financial statements,
including significant accounting policies in the context of the financial statements taken as a whole, and other explanatory information
included in the supplementing notes and exhibits. |
| 2. | In our opinion, the accompanying
financial statements present fairly, in all material respects, the financial position of BANCO BBVA ARGENTINA S.A. and its subsidiaries
as of December 31, 2023, as well its comprehensive income, the changes in shareholder´s equity and cash flows for the year then
ended, in accordance with the accounting information framework established by the Central Bank of Argentina (“BCRA”), as indicated
in the section “Responsibility of the Bank’s Management and Board of Directors in connection with the financial statements”. |
Basis of the opinion
| 3. | We have performed our audit in
accordance with auditing standards established by Argentine Federation of Professional Councils in Economic Sciences (“FACPCE”
for its Spanish acronym) Technical Resolution No. 37 and with the “Minimum standards on external audits” issued by the BCRA.
Our responsibilities under those standards are described below in the section “Auditor's Responsibilities in Connection with the
Audit of Financial Statements”. We are independent of the Bank and we have complied with the rest of the ethics responsibilities
in accordance with the Code of Ethics of the CPCECABA (Professional Council in Economic Sciences of the City of Buenos Aires) and FACPCE
Technical Resolution No. 37. We consider that the judgmental evidence we have obtained
is sufficient and appropriate basis for our opinion. |
A member firm of Ernst & Young Global Limited |
| Pistrelli, Henry Martin y Asociados S.R.L. 25 de mayo 487 - C1002ABI Buenos Aires, Argentina | Tel: (54-11) 4318-1600/4311-6644 Fax: (54-11) 4318-1777/4510-2220 ey.com |
| | |
Emphasis on certain aspects disclosed in the
financial statements
| 4. | We draw attention to the information
contained in the following notes to the accompanying financial statements: |
| a) | Note 2. “Basis for the
presentation of these financial statements and applicable accounting standards” in which the Bank quantifies the effects on the
financial statements of the application of section 5.5 “Impairment in value” of International Financial Reporting Standard
("IFRS") 9 “Financial instruments” to financial assets that include exposures to the public sector, which were temporarily
excluded from that application by Communication "A" 6847 of the BCRA. |
| b) | Note 2. “Basis for the
presentation of these financial statements and applicable accounting standards” in relation to the measurement in the remaining
investment in Prisma Medios de Pago S.A, in which the Bank states that: (i) in March 2022 there was the transfer of equity instruments
that were measured at fair value determined in accordance with the memorandums dated April 29, 2019, and March 22, 2021, received from
the BCRA, and (ii) if IFRS had been applied for the purposes of determining the fair value, the results for the year ended December 31,
2022 would have been modified. However, this matter did not generate any differences as to the shareholders´equity value as of such
date. |
These aspects do not modify the opinion
expressed in paragraph 2, but must be taken into account by those users who use IFRS in the interpretation of the financial statements
mentioned in paragraph 1.
Information other than the financial statements
and the related auditor´s report (“Other information”)
| 5. | Other information comprises the
information included in the Board of Directors’ Letter to the Shareholders. This information is separate from the financial statements
and our related auditor's report. The Board of Directors is responsible for the other information. |
A member firm of Ernst & Young Global Limited |
| Pistrelli, Henry Martin y Asociados S.R.L. 25 de mayo 487 - C1002ABI Buenos Aires, Argentina | Tel: (54-11) 4318-1600/4311-6644 Fax: (54-11) 4318-1777/4510-2220 ey.com |
| | |
Our opinion
on the separate financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection
with our audit of the separate financial statements, our responsibility is to read the other information and, in doing so, consider whether
theother information is material inconsistent with the financial statements or knowledge obtained by us in the audit, or whether for any
other reason there appears to be a material misstatement. If, based on the work we have performed, in what is within our competence, that
there is a significant inaccuracy in the other information, we are obliged to report it. We have nothing to report in this regard.
Other matters
| 6. | We issued a separate audit report
on the consolidated financial statements of BANCO BBVA ARGENTINA S.A. and its subsidiaries as of that same date and for the same period
indicated in paragraph 1. |
Responsibility of the Bank’s Management and
Board of Directors in connection with the financial statements
| 7. | The Bank´s Board of Directors
and Management are responsible for the preparation and fair presentation of the separate financial statements in accordance with the accounting
reporting framework established by the BCRA which, as indicated in note 2. to the financial statements mentioned in paragraph 1, is based
on IFRS, as issued by the International Accounting Standards Board ("IASB") and adopted by FACPCE, and subject to the exceptions
and temporary provisions established by the BCRA and explained in such note. Likewise, the Bank´s Board of Directors and Management
are also responsible for the internal control that they deem necessary to allow the preparation of separate financial statements free
of material misstatements, due to fraud or error. |
In preparing
the separate financial statements, the Board of Directors and Management are also responsible for assessing the Bank’s ability to
continue as a going concern and disclosing, as the case may be, the issues related to going concern and using the going concern accounting
principle, except if the Board of Directors intends to liquidate the Bank or interrupt its operations, or if there is no other realistic
alternative.
A member firm of Ernst & Young Global Limited |
| Pistrelli, Henry Martin y Asociados S.R.L. 25 de mayo 487 - C1002ABI Buenos Aires, Argentina | Tel: (54-11) 4318-1600/4311-6644 Fax: (54-11) 4318-1777/4510-2220 ey.com |
| | |
Auditor's responsibilities in connection with the
audit of Financial Statements
| 8. | Our goals are obtaining reasonable
assurance that the separate financial statements taken as a whole are free from material misstatements, due to fraud or error and to issue
an auditor´s report including our opinion. Reasonable assurance is a high degree of assurance, but it does not guarantee that an
audit performed in accordance with FACPCE Technical Resolution No. 37 and with the “Minimum Standards on External Audits”
issued by the BCRA will always detect a material misstatement when it exists. Material misstatements could be due to fraud or error and
they are deemed material if, individually or in the aggregate, they may be reasonably expected to affect the economic decisions taken
by users based on the separate financial statements. |
As part of an
audit performed in accordance with FACPCE Technical Resolution No. 37 and the “Minimum Standards on External audits” issued
by the BCRA, we applied our professional judgment and we maintain professional skepticism throughout the audit. We also:
| · | Identify and assess risks of
material misstatement of the separate financial statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of no detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. |
| · | Obtain an understanding of internal
control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Bank’s internal control. |
| · | Evaluate the appropriateness
of the accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors
and Management. |
| · | Conclude on the appropriateness
of the Board’s of Directors and Management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubts on the Bank’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's
report to the related disclosures in the consolidated financial statements or, if such information is inadequate, to modify an opinion.
Our conclusions are based on the audit evidence obtained up to the date of auditor’s report. However, future events or conditions
may cause the Bank to cease to continue as a going concern. |
A member firm of Ernst & Young Global Limited |
| Pistrelli, Henry Martin y Asociados S.R.L. 25 de mayo 487 - C1002ABI Buenos Aires, Argentina | Tel: (54-11) 4318-1600/4311-6644 Fax: (54-11) 4318-1777/4510-2220 ey.com |
| | |
| · | Evaluate the overall presentation,
structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements
represent the underlying transactions and events in a manner that achieves fair presentation. |
We
communicate with the Board of Directors and Management regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
II. Report on other legal and regulatory requirements
In compliance
with current legal requirements, we further report that:
| a) | In our opinion, the financial
statements mentioned in paragraph 1 have been prepared, in all material respects, in conformity with the applicable provisions of Argentine
General Business Associations Law, and with CNV regulations. |
| b) | The financial statements mentioned
in paragraph 1 are being transcribed to the Book of Balance Sheets for Publication and result from books kept, in their formal respects,
in conformity with current regulations as mentioned in note 2.7. to the consolidated financial statements, and under the conditions established
in Resolution No. DI-2021-6-APN-GRC#CNV of the CNV dated February 25, 2021. |
| c) | As of December 31, 2023, the
liabilities accrued from employee and employer contributions to the Integrated Pension Fund System, as recorded in the Bank’s books,
amounted to ARS 2,185,374,132, none of which was due and payable as of that date. |
| d) | As of December 31, 2023, as stated
in note 47 to the consolidated financial statements as of such date, the Bank has equity and a counterpart in eligible assets that exceed
the minimum amounts required by the relevant CNV standards for such items. |
A member firm of Ernst & Young Global Limited |
| Pistrelli, Henry Martin y Asociados S.R.L. 25 de mayo 487 - C1002ABI Buenos Aires, Argentina | Tel: (54-11) 4318-1600/4311-6644 Fax: (54-11) 4318-1777/4510-2220 ey.com |
| | |
| e) | During the fiscal year ended
December 31, 2023, we invoiced fees for audit services provided to BANCO BBVA ARGENTINA S.A., which represent 99.7% of the total invoiced
to the Bank for all concepts. Likewise, we inform that these fees represent 65.5% of the total audit services and 65.4% of the total services
for all concepts, in both cases invoiced to the Bank and its related companies. |
City of Buenos Aires
March 5, 2024
PISTRELLI, HENRY MARTIN Y ASOCIADOS S.R.L. |
C.P.C.E.C.A.B.A. Vol. 1 – Fo. 13 |
|
|
|
JAVIER J. HUICI |
Partner |
Certified Public Accountant (U.B.A.) |
C.P.C.E.C.A.B.A. Vol. 272 – Fo. 27 |
A member firm of Ernst & Young Global Limited |
SUPERVISORY COMMITTEE’S REPORT
To the Shareholders of
Banco BBVA Argentina S.A.
Registered address: Av. Córdoba 111
City of Buenos Aires, Argentina
In our capacity as members of the Supervisory Committee of BANCO
BBVA ARGENTINA S.A. (hereinafter, either “BBVA” or the “Entity”) designated at the Annual and Extraordinary
Shareholders’ Meeting held on April 28, 2023, and in compliance with the terms of Section 294 of the Argentine Companies Law No.
19.550, we have reviewed the financial statements for the fiscal year ended December 31, 2023 comparatively presented, the statement of
financial position, the consolidated statements of income, other comprehensive income, changes in shareholders' equity and the consolidated
statement of cash flows for the year then ended, and certain exhibits and notes thereto.
In addition, we have analyzed the following separate statements:
of financial position, of income, of other comprehensive income, of changes in shareholders’ equity and of cash flows for the fiscal
year then ended, and certain exhibits and notes.
The Entity is responsible for the preparation and presentation
of the above-mentioned financial statements in accordance with the accounting standards applicable to financial institutions established
by the Argentine Central Bank (BCRA), as well as for the design, implementation and maintenance of such internal control as the Entity
might deem appropriate to prepare its financial statements free from material misstatements.
| I. | DOCUMENTS SUBJECT TO EXAMINATION |
- Financial statements for the fiscal year ended on December
31, 2023, presented on a comparative basis.
- Consolidated Statement of Financial Position
- Consolidated Statement of Income
- Consolidated Statement of Other Comprehensive Income
- Consolidated Statement of Changes in Shareholders' Equity.
- Consolidated Statement of Cash Flows.
- Notes.
- Exhibits
- Separate Statement of Financial Position.
- Separate Statement of Income
- Separate Statement of Other Comprehensive Income.
- Separate Statement of Changes in Shareholders' Equity.
- Separate Statement of Cash Flows.
- Notes.
- Exhibits
| II. | SCOPE OF OUR EXAMINATION |
We performed our examination in accordance with the terms of
Argentine Companies Law No. 19550, as amended, and to the extent deemed relevant, in accordance with the provisions of Technical Pronouncement
No. 37 issued by the Argentine Federation of Professional Councils in Economic Sciences. Such standards require that we examine the financial
statements referred to in paragraph I in accordance with applicable generally accepted accounting principles in Argentina, and that we
verify the consistency of the documents subject to review with the information on corporate decisions disclosed in minutes, and the compliance
of such decisions with the Law and the corporate by-laws in all formal and documentary aspects.
In conducting our examination of the documents detailed in paragraph
I, we have examined the work performed by the external auditors PISTRELLI, HENRY MARTIN Y ASOCIADOS S.R.L., who issued their auditor report
on March 5, 2024 including an unqualified opinion and an emphasis of matter paragraph concerning certain issues disclosed in the financial
statements, which are described in paragraph III of this report.
Our work consisted in planning our examination, defining the
nature, scope and timing of the procedures applied, and reviewing the conclusions of the audit performed by such auditors.
An audit entails performing procedures on a selective basis
to obtain audit evidence about the disclosures included in the financial statements. The selected procedures depend on our professional
judgment, including the assessment of the risk of material misstatements in the financial statements. In performing such risk assessment,
we have considered the Entity's existing internal control on the preparation and presentation of the financial statements in order to
select the appropriate auditing procedures in light of the circumstances, but not in order to render an opinion on the effectiveness of
such internal control. An audit also involves assessing the accounting criteria used by the Entity, the material estimates made by the
Board of Directors, and the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
In Note 1 to the consolidated and separate financial statements,
“Basis for the preparation of these Financial Statements and applicable accounting standards – Applicable Accounting Standards”
where the Bank quantifies the effects of the application of section 5.5 “Impairment in value” of IFRS 9 “Financial instruments”
to financial assets that comprise exposures to the public sector, which were temporarily excluded from such application through BCRA Communiqué
“A” 6847, which are explained in the note.
As stated in note 2 to the accompanying consolidated and separate
financial statements. “Basis for the preparation of these financial statements and applicable accounting standards - Applicable
Accounting Standards” as regards measurement of the remaining shareholding of the Bank in Prisma Medios de Pago S.A., in which the
Entity exposes that (i) in March 2022, the transfer of the equity instruments measured at fair value was consummated as set forth in Memorandum
dated April 29, 2019 and March 22, 2021 received by the BCRA, and (ii) had the IFRS been applied to determine the fair value referred
to above, income (loss) for the nine-month period ended December 31, 2022 would have changed. However, this situation does not generate
differences as regards the shareholders’ equity value as of December 31, 2022.
These matters do not change the opinion expressed but they should
be taken into account by those who use IFRS for the interpretation of the financial statements indicated in paragraph 1.
We have examined the Entity's consolidated and separate financial
statements as of December 31, 2023 and, in our opinion, the accompanying financial statements present fairly, in all material aspects,
the financial position of BBVA Argentina S.A. as of December 31, 2023, as well as their profits and losses, changes in shareholders' equity,
and cash flows for the fiscal year then ended in accordance with the financial reporting framework established by the BCRA which is described
in note 2 to such financial statements.
| V. | INFORMATION REQUIRED BY APPLICABLE PROVISIONS |
We hereby report that the figures disclosed in the accompanying
financial statements arise from the Entity's financial records which have been kept, in all formal aspects, in accordance with applicable
legal and regulatory standards. Furthermore, the financial statements are pending transcription into the Financial Statements for Reporting
Purposes book, and considering what was mentioned in Note 2.7 to the consolidated financial statements, they arise from accounting records
kept, in all formal aspects, in accordance with the laws in force and the conditions set forth in Resolution No. DI-2021-6-APN-GRC#CNV
of the CNV dated February 25, 2021.
We further represent that, during the reporting year, we have
carried out all duties, to the extent applicable, set forth in Section 294 of Law No. 19550, including attending Board of Directors' meetings.
We have also reviewed the directors’ compliance with performance
bonds and they are conforming to the provisions of General Resolution No. 7/2015 of the Argentine Superintendence of Corporations (IGJ).
We further represent that any member of this Supervisory Committee
is individually authorized to sign, on behalf of such committee, all documents referred to in the first paragraph herein and all copies
of this report.
City of Buenos Aires, March 5, 2024.
GONZALO J. VIDAL DEVOTO
ATTORNEY-AT-LAW
C.P.A.C.F. Volume°97- Page° 910
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