Banco BBVA Argentina (BBARN) Q2 2026 Earnings Report

The call conveyed a constructive and improving picture: strong sequential profitability (net income +44.6% QoQ, ROE up to 12.2%), solid capital and liquidity, healthy fee growth (+35% YoY), and early signs of asset-quality stabilization. At the same time, meaningful challenges remain—elevated NPLs (6.09%), a high cost of risk (7.13% quarterly) and expected margin compression as inflation and rates decline. Management provided concrete guidance (real loan growth ~10% for 2026, end-year NPL ~5.5%, full-year cost of risk ~6.5%, efficiency <45%, real ROE in the low teens) and emphasized a prudent, disciplined growth posture. Overall, the positive operational results, robust balance sheet metrics, and forward-looking guidance outweigh the near-term credit and margin headwinds.

BBVA Argentina guided to a constructive second half of 2026 with key numerical targets: year‑end inflation around 29% (monthly inflation moving toward 1.5–2%), real loan‑book growth of about 10% for 2026, full‑year cost of risk ~6.5% (Q2 was 7.13% with improvement expected in Q3 and stronger in Q4), NPLs to stabilize and end 2026 around 5.5% (Q2 NPL 6.09%, system 7.22%), coverage ratio bottoming at ~80% and then rebuilt, an efficiency ratio below 45% for the year (Q2 efficiency 45%), a real ROE in the low‑teens (Q2 ROE 12.2%), comfortable liquidity (liquidity ratio 45.5%) and strong capital (regulatory ratio 18.8%, ~128.7% excess), while expecting some nominal NIM pressure (nominal NIM down ~200 bps by year‑end, real NIM down ~100–125 bps) partly offset by lower inflation and continued fee growth (net fees ~+35% YoY); management also noted Q2 inflation‑adjusted net income of ARS 131.6bn (+44.6% q/q), ARS 17.1tn private sector loans, ARS 19.2tn deposits, 12% loan market share (up 15 bps YoY) and deposit growth capacity of roughly 5–10% depending on asset demand.