BBVA Argentina reported a 45% sequential increase in inflation-adjusted net income to AR$131.6 billion in the second quarter of 2026, driven by lower operating expenses and improved margins, even as revenue fell short of expectations.
The bank’s accumulated net income for the first half of 2026 reached AR$222.5 billion, while return on equity rose 390 basis points quarter-over-quarter to 12.2% on an annualized basis. Return on assets strengthened to 1.8% quarterly, up from 1.5% in the prior period. Net interest income declined 2.9% quarterly to AR$912.2 billion but rose 18.9% year-over-year to AR$1.85 trillion for the first half. Adjusted net interest margin improved to 14.66% from 13.98% in Q1.
Revenue totaled $630.29 million, missing the $763.5 million forecast by 17.45%, contributing to a 2.71% drop in after-hours share price to $14.205. Operating expenses fell 5.0% quarterly to AR$596.2 billion, while the efficiency ratio improved to 45% for the first half, down from 46% in Q1 and 54% in full-year 2025. Fees-to-expenses ratio increased to 47.9% quarterly, up from 47.2% in the prior quarter.
Asset quality metrics weakened, with the non-performing loan ratio rising to 10.19% from 9.75% in Q1. Retail NPLs reached 6.09%, while commercial NPLs stood at 0.64%, compared with a system average of 7.22%. NPL coverage declined to 79.91% from 88.41% in the prior quarter, and the cost of risk stood at 6.54% quarterly and 7.13% for the first half. Loan loss allowances increased by AR$42.4 billion in Q2 and rose 72.0% year-over-year to AR$565.2 billion.
Private loans grew 2.1% quarterly in real terms to AR$17.078 trillion, with retail loans comprising 57% of the portfolio. Deposits rose 4.3% quarterly to AR$18.542 trillion, with a 43% allocation to investment accounts. The bank’s capital ratio remained at 18.8%, well above regulatory minimums, while liquid assets represented 45% of total deposits.
Management guided for full-year loan growth of approximately 10% in real terms and deposit growth of 5% to 10%, with ROE expected in the low teens and the efficiency ratio below 45%. The cost of risk is projected to decline to about 6.5%, while the NPL ratio is targeted to improve to around 5.5% by year-end. Net interest margins are expected to compress by roughly 200 basis points historically and 100 to 125 basis points in real terms due to normalizing inflation and interest rates.
