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 July, 2023
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.
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Banco BBVA Argentina S.A. |
Date: |
July 18, 2023 |
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By: |
/s/ Carmen Morillo Arroyo |
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Name: |
Carmen Morillo Arroyo |
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Title: |
Chief Financial Officer |
BANCO BBVA ARGENTINA S.A.
FINANCIAL STATEMENTS FOR THE FISCAL
YEAR ENDED DECEMBER 31, 2022
Banco BBVA Argentina
S.A.
TABLE OF CONTENTS
Financial statements for the fiscal year ended December
31, 2022, 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
Independent auditors’ report on the audit of the
consolidated financial statements
Independent auditors’ report on the audit of the
separate financial statements
Supervisory Committee’s Report
|
-1- |
|
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
AS OF DECEMBER 21, 2022 AND 2021 |
(stated in thousands of pesos in constant currency - Note 2.1.5.) |
(Translation of Financial statements originally issued in Spanish - See Note 54) |
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Notes and Exhibits |
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12.31.22 |
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12.31.21 |
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ASSETS |
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Cash and deposits in banks |
3 and Exhibit P |
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296,292,314 |
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425,320,837 |
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Cash |
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117,455,922 |
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144,641,271 |
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Financial institutions and correspondents |
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178,836,392 |
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280,679,566 |
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Argentine Central Bank (BCRA) |
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161,414,645 |
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276,574,172 |
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Other in the country and abroad |
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17,421,747 |
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4,105,394 |
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Debt securities at fair value |
4 and Exhibit P |
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25,519,962 |
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2,721,113 |
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Derivatives |
5 and Exhibit P |
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2,268,201 |
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5,486,313 |
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Repo transactions |
6 and Exhibit P |
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52,564,802 |
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267,934,977 |
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Other financial assets |
7 |
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32,743,014 |
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28,587,551 |
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Loans and other financing |
8 |
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717,096,502 |
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738,343,647 |
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Non-financial government sector |
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1,399 |
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1,441 |
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Argentine Central Bank (BCRA) |
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9,034 |
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- |
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Other financial institutions |
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4,231,777 |
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8,201,090 |
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Non-financial private sector and residents aborad |
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712,854,292 |
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730,141,116 |
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Other debt securities |
9 and Exhibit P |
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645,103,305 |
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360,348,729 |
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Financial assets pledged as collateral |
10 and Exhibit P |
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46,195,119 |
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39,506,104 |
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Current income tax assets |
11. a) |
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38,707 |
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4,391,320 |
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Investments in equity instruments |
12 and Exhibit P |
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938,347 |
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4,319,292 |
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Investments in associates |
13 |
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3,467,425 |
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3,995,652 |
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Property and equipment |
14 and Exhibit F |
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96,104,394 |
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99,191,276 |
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Intangible assets |
15 and Exhibit G |
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9,617,561 |
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7,159,804 |
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Deferred income tax assets |
11. c) |
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1,520,164 |
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1,707,156 |
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Other non-financial assets |
16 |
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29,141,960 |
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17,145,077 |
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Non-current assets held for sale |
17 |
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225,079 |
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588,486 |
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TOTAL ASSETS |
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1,958,836,856 |
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2,006,747,334 |
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Notes and exhibits are an integral part of these consolidated financial statements. |
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-2- |
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
AS OF DECEMBER 31, 2022 AND 2021 |
(stated in thousands of pesos in constant currency - Note 2.1.5.) |
(Translation of Financial statements originally issued in Spanish - See Note 54) |
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Notes and Exhibits |
|
12.31.22 |
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12.31.21 |
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LIABILITIES |
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Deposits |
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18, Exhibits H and P |
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1,313,820,228 |
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1,379,790,010 |
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Non-financial Government Sector |
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9,680,134 |
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25,857,759 |
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Financial Sector |
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340,009 |
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423,287 |
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Non-financial Private Sector and Residents Abroad |
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1,303,800,085 |
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1,353,508,964 |
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Derivatives |
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5 and Exhibit P |
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334,340 |
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612,069 |
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Other financial liabilities |
20 and Exhibit P |
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118,432,421 |
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119,977,796 |
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Financing received from the BCRA and other financial institutions |
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21 and Exhibit P |
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19,873,142 |
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22,903,783 |
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Corporate bonds issued |
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22 and Exhibit P |
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191,183 |
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979,760 |
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Current income tax liabilities |
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11. b) |
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7,248,079 |
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690,092 |
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Provisions |
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23 and Exhibit J |
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8,669,445 |
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10,933,970 |
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Deferred income tax liabilities |
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11.c) |
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6,691,575 |
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15,990,755 |
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Other non-financial liabilities |
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24 |
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117,692,475 |
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138,112,236 |
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TOTAL LIABILITIES |
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1,592,952,888 |
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1,689,990,471 |
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EQUITY |
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Share capital |
26 |
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612,710 |
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612,710 |
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Non-capitalized contributions |
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77,582,620 |
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77,582,620 |
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Capital adjustments |
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55,995,859 |
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55,995,859 |
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Reserves |
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174,962,334 |
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136,645,230 |
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Retained earnings |
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10,803 |
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(2,946,632) |
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Other accumulated comprehensive income/(loss) |
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(7,498,606) |
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1,357,353 |
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Income for the year |
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58,814,985 |
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41,263,736 |
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Equity attributable to owners of the Parent |
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360,480,705 |
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310,510,876 |
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Equity attributable to non-controlling interests |
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5,403,263 |
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6,245,987 |
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TOTAL EQUITY |
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365,883,968 |
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316,756,863 |
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TOTAL LIABILITIES AND EQUITY |
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1,958,836,856 |
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2,006,747,334 |
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Notes and exhibits are an integral part of these consolidated financial statements. |
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-3- |
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CONSOLIDATED STATEMENT OF INCOME |
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2022 AND 2021 |
(stated in thousands of pesos in constant currency - Note 2.1.5) |
(Translation of Financial statements originally issued in Spanish - See Note 54) |
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Notes and Exhibits |
|
12.31.22 |
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12.31.21 |
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Interest income |
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|
27 and Exhibit Q |
|
629,349,615 |
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418,616,756 |
Interest expense |
28 and Exhibit Q |
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(289,909,658) |
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(177,379,371) |
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Net interest income |
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339,439,957 |
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241,237,385 |
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Commission income |
29 and Exhibit Q |
|
81,479,386 |
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87,081,632 |
Commission expenses |
30 and Exhibit Q |
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(34,736,558) |
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(40,978,989) |
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Net commission income |
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46,742,828 |
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46,102,643 |
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Net income from financial instruments at fair value through profit or loss |
31 and Exhibit Q |
|
18,176,921 |
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8,501,868 |
Net income (loss) from write-down of assets at amortized cost and at fair value through OCI |
32 |
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289,948 |
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(238,226) |
Foreing exchange and gold gains/(losses) |
33 |
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8,076,977 |
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10,790,706 |
Other operating income |
34 |
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21,162,193 |
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15,761,823 |
Loan loss allowance |
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(19,480,425) |
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(16,104,276) |
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Net operating income |
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414,408,399 |
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306,051,923 |
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Personnel benefits |
35 |
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(67,977,448) |
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(60,993,395) |
Administrative expenses |
36 |
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(68,141,723) |
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(63,175,953) |
Depreciation and amortization |
37 |
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(10,973,223) |
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(10,872,882) |
Other operating expenses |
38 |
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(61,486,046) |
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(52,007,167) |
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Operating income |
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205,829,959 |
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119,002,526 |
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Income (loss) from associates and joint ventures |
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(466,497) |
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(81,528) |
Gain (loss) on net monetary position |
2.1.5. |
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(143,506,418) |
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(77,853,422) |
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Income before income tax |
|
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|
61,857,044 |
|
41,067,576 |
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Income tax |
11. d) |
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(3,922,673) |
|
155,399 |
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Net income for the year |
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57,934,371 |
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41,222,975 |
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Net income for the year attributable to: |
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Owners of the Parent |
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58,814,985 |
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41,263,736 |
Non-controlling interests |
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(880,614) |
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(40,761) |
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Notes and exhibits are an integral part of these consolidated financial statements. |
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-4- |
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CONSOLIDATED STATEMENT OF INCOME |
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2022 AND 2021 |
EARNINGS PER SHARE |
AS OF DECEMBER 31, 2022 AND 2021 |
(stated in thousands of pesos in constant currency - Note 2.1.5) |
(Translation of Financial statements originally issued in Spanish - See Note 54) |
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Accounts |
|
12.31.22 |
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12.31.21 |
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Numerator: |
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Net income attributable to owners of the Parent |
|
58,814,985 |
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41,263,736 |
Net income attributable to owners of the Parent adjusted to reflect the effect of dilution |
|
58,814,985 |
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41,263,736 |
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Denominator: |
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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 |
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Basic earnings per share (stated in thousands of pesos) |
|
95.9915 |
|
67.3463 |
Diluted earnings per share (stated in thousands of pesos) (1) |
|
95.9915 |
|
67.3463 |
| (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. |
|
-5- |
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CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME |
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2022 AND 2021 |
(Stated in thousands of pesos in constant currency - Note 2.1.5) |
(Translation of Financial statements originally issued in Spanish - See Note 54) |
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Note |
|
12.31.22 |
|
12.31.21 |
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Net income for the year |
|
|
57,934,371 |
|
41,222,975 |
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Other comprehesive income components to be reclassified to income/(loss) for the year: |
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Share in Other Comprehensive Income from associates and joint ventures at equity method |
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Income/(Loss) for the year on the Share in OCI from associates and joint ventures at equity method |
|
|
109,017 |
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(6,940) |
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109,017 |
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(6,940) |
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Profit or losses from financial instruments at fair value through OCI |
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Income/(Loss) for the year on financial instruments at fair value through OCI |
|
|
(12,460,706) |
|
1,339,785 |
Reclassification adjustment for the year |
|
|
(272,217) |
|
208,433 |
Income tax |
11.d) |
|
3,805,803 |
|
(389,109) |
|
|
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|
|
|
|
|
|
(8,927,120) |
|
1,159,109 |
|
|
|
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|
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Other comprehesive income components not to be reclassified to income/(loss) for the year: |
|
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Income or loss on equity instruments at fair value through OCI (IFRS 9, paragraph 5.7.5) |
|
|
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|
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Loss for the year on equity instruments at fair value through OCI |
|
|
(37,869) |
|
(25,407) |
|
|
|
|
|
|
|
|
|
(37,869) |
|
(25,407) |
|
|
|
|
|
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Total Other Comprehensive Income/(loss) for the year |
|
|
(8,855,972) |
|
1,126,762 |
|
|
|
|
|
|
Total Comprehensive Income |
|
|
49,078,399 |
|
42,349,737 |
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income: |
|
|
|
|
|
Attributable to owners of the Parent |
|
|
49,959,026 |
|
42,390,498 |
Attributable to non-controlling interests |
|
|
(880,627) |
|
(40,761) |
|
|
|
|
|
|
Notes and exhibits are an integral part of these consolidated financial statements. |
|
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|
-6- |
|
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´EQUITY |
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022 |
(stated in thousands of pesos in constant currency - Note 2.1.5) |
(Translation of Financial statements originally issued in Spanish - See Note 54) |
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2022 |
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Share |
|
Non-capitalized |
|
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Other Comprehensive |
Retained |
|
|
|
|
|
|
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|
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Capital |
|
contributions |
|
|
|
Income |
|
Earnings |
|
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|
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|
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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 |
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|
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Retained earnings |
|
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|
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Adjustments to equity |
|
|
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|
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Transactions |
|
|
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|
Legal |
Other |
|
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|
|
|
|
|
|
|
|
Restated balances at the beginning of the year |
612,710 |
|
77,582,620 |
|
55,995,859 |
|
1,466,371 |
(109,018) |
|
66,237,595 |
70,407,635 |
38,317,104 |
|
310,510,876 |
|
6,245,987 |
|
316,756,863 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of the implementation of the financial reporting framework established by the BCRA -IFRS 9, paragraph 5.5 for Related Companies(Note 2.5.) |
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
10,803 |
|
10,803 |
|
37,903 |
|
48,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted balance at the beginning of the year |
612,710 |
|
77,582,620 |
|
55,995,859 |
|
1,466,371 |
(109,018) |
|
66,237,595 |
70,407,635 |
38,327,907 |
|
310,521,679 |
|
6,283,890 |
|
316,805,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Net income for the year |
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
58,814,985 |
|
58,814,985 |
|
(880,614) |
|
57,934,371 |
|
- Other Comprehensive Income for the year |
- |
|
- |
|
- |
|
(8,964,976) |
109,017 |
|
- |
- |
- |
|
(8,855,959) |
|
(13) |
|
(8,855,972) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Distribution of Retained Earnings as per Shareholders' Resolution dated April 29, 2022 (Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal Reserve |
- |
|
- |
|
- |
|
- |
- |
|
7,663,421 |
- |
(7,663,421) |
|
- |
|
- |
|
- |
|
Other |
- |
|
- |
|
- |
|
- |
- |
|
- |
30,653,683 |
(30,653,683) |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at fiscal year end |
612,710 |
|
77,582,620 |
|
55,995,859 |
|
(7,498,605) |
(1) |
|
73,901,016 |
101,061,318 |
58,825,788 |
|
360,480,705 |
|
5,403,263 |
|
365,883,968 |
|
Notes and exhibits are an integral part of these consolidated financial statements. |
|
-7- |
|
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY |
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021 |
|
(stated in thousands of pesos in constant currency - Note 2.1.5) |
|
(Translation of Financial statements originally issued in Spanish - See Note 54) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
|
Share |
|
Non-capitalized |
|
|
|
Other Comprehensive |
Retained |
|
|
|
|
|
|
|
|
|
Capital |
|
contributions |
|
|
|
Income |
|
Earnings |
|
|
|
|
|
|
|
|
|
Outstanding shares |
|
Share premium |
|
|
|
Losses 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 |
|
77,582,620 |
|
55,995,859 |
|
332,669 |
(102,078) |
|
66,237,595 |
187,597,745 |
(86,535,229) |
|
301,721,891 |
|
6,286,748 |
|
308,008,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income from previous years (see Note 2.1.1.b)) |
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
(2,946,642) |
|
(2,946,642) |
|
- |
|
(2,946,642) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted balance at the beginning of the year |
612,710 |
|
77,582,620 |
|
55,995,859 |
|
332,669 |
(102,078) |
|
66,237,595 |
187,597,745 |
(89,481,871) |
|
298,775,249 |
|
6,286,748 |
|
305,061,997 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Net income for the year |
- |
|
- |
|
- |
|
- |
- |
|
- |
- |
41,263,736 |
|
41,263,736 |
|
(40,761) |
|
41,222,975 |
|
- Other Comprehensive Income for the year |
- |
|
- |
|
- |
|
1,133,702 |
(6,940) |
|
- |
- |
- |
|
1,126,762 |
|
- |
|
1,126,762 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Distribution of Retained Earnings as per Shareholders' Resolution dated April 20, 2021 (Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends (1) |
- |
|
- |
|
- |
|
- |
- |
|
- |
(17,507,119) |
- |
|
(17,507,119) |
|
- |
|
(17,507,119) |
|
Absorption of accrued losses |
- |
|
- |
|
- |
|
- |
- |
|
- |
(86,535,239) |
86,535,239 |
|
- |
|
- |
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
- Distribution of Retained Earnings as per Shareholders' Resolution dated November 3, 2021 (Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends (2) |
- |
|
- |
|
- |
|
- |
- |
|
- |
(13,147,752) |
- |
|
(13,147,752) |
|
- |
|
(13,147,752) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at fiscal year end |
612,710 |
|
77,582,620 |
|
55,995,859 |
|
1,466,371 |
(109,018) |
|
66,237,595 |
70,407,635 |
38,317,104 |
|
310,510,876 |
|
6,245,987 |
|
316,756,863 |
|
(1) It represents $ 28.57 per share stated in historical currency. |
(2) It represents $ 21.46 per share. |
|
Notes and exhibits are an integral part of these consolidated financial statements. |
|
-8- |
|
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022 AND 2021 |
(stated in thousands of pesos in constant currency - Note 2.1.5.) |
(Translation of Financial statements originally issued in Spanish - See Note 54) |
|
|
|
|
|
Accounts |
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
Income before income tax |
|
61,857,044 |
|
41,067,576 |
|
|
|
|
|
Adjustment for total monetary income for the year |
|
143,506,418 |
|
77,853,422 |
|
|
|
|
|
Adjustments to obtain cash flows from operating activities: |
|
32,784,073 |
|
80,975,868 |
Depreciation and amortization |
10,973,223 |
|
10,872,882 |
Loan loss allowance |
19,480,425 |
|
16,104,276 |
Effect of foreign exhange changes on cash and cash equivalents |
|
(1,212,110) |
|
44,868,750 |
Loss for the sale of Prisma Medios de Pagos S.A. |
|
(4,388,676) |
|
- |
Income from put option taken - Prisma Medios de Pagos S.A. |
|
- |
|
2,302,454 |
Other adjustments |
|
7,931,211 |
|
6,827,506 |
|
|
|
|
|
Net increases from operating assets: |
|
(1,068,855,179) |
|
(602,763,538) |
Debt securities at fair value through profit or loss |
(35,287,767) |
|
(5,017,494) |
Derivatives |
1,736,775 |
|
585,176 |
Repo transactions |
149,441,563 |
|
(199,773,264) |
Loans and other financing |
(449,308,188) |
|
(231,652,707) |
Non-financial government sector |
(1,328) |
|
(321) |
Other financial institutions |
(596,989) |
|
(5,638,156) |
Non-financial private sector and residents abroad |
(448,709,871) |
|
(226,014,230) |
Other debt securities |
(677,916,427) |
|
(150,343,562) |
Financial assets pledged as collateral |
(34,925,506) |
|
(4,227,024) |
Investments in equity instruments |
3,897,369 |
|
1,730,291 |
Other assets |
(26,492,998) |
|
(14,064,954) |
|
|
|
|
|
Net increases from operating liabilities: |
|
942,808,800 |
|
637,530,373 |
Deposits |
787,212,147 |
|
526,975,723 |
Non-financial government sector |
(2,487,971) |
|
16,784,353 |
Financial sector |
218,454 |
|
(1,712,192) |
Non-financial private sector and residents abroad |
789,481,664 |
|
511,903,562 |
Liabilities at fair value through profit or loss |
41,830 |
|
127,071 |
Derivatives |
162,334 |
|
387,017 |
Other liabilities |
155,392,489 |
|
110,040,562 |
|
|
|
|
|
Income tax paid |
(1,625,192) |
|
(7,316,563) |
|
|
|
|
|
Total cash flows generated by operating activities |
|
110,475,964 |
|
227,347,138 |
|
-9- |
|
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS |
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2022 AND 2021 |
(stated in thousands of pesos in constant currency - Note 2.1.5.) |
(Translation of Financial statements originally issued in Spanish - See Note 54) |
|
|
|
|
|
Accounts |
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
Payments: |
|
(28,289,796) |
|
(16,303,218) |
Purchase of property and equipment, intangible assets and other assets |
(16,410,002) |
|
(15,667,059) |
Other payments related to investing activities |
(11,879,794) |
|
(636,159) |
|
|
|
|
|
Collections: |
|
1,136,924 |
|
1,698,463 |
Other collections related to investing activities |
|
1,136,924 |
|
1,698,463 |
|
|
|
|
|
Total cash flows used in investing activities |
|
(27,152,872) |
|
(14,604,755) |
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
Payments: |
|
(6,482,791) |
|
(10,469,927) |
Non-subordinated corporate bonds |
(747,514) |
|
(2,327,965) |
Financing from local financial institutions |
(3,592,216) |
|
(465,014) |
Other payments related to investing activities |
|
- |
|
(4,948,127) |
Leases |
|
(2,143,061) |
|
(2,728,821) |
|
|
|
|
|
Collections: |
|
561,575 |
|
14,109 |
BCRA |
|
10,158 |
|
14,109 |
Other collections related to financing activities |
|
551,417 |
|
- |
|
|
|
|
|
Total cash flows used in financing activities |
|
(5,921,216) |
|
(10,455,818) |
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
1,212,110 |
|
(44,868,750) |
Loss on net monetary position of cash and cash equivalents |
(207,642,509) |
|
(179,332,543) |
|
|
|
|
|
Total changes in cash flows |
|
(129,028,523) |
|
(21,914,728) |
Restated cash and cash equivalents at the beginning of the year (Note 3) |
|
425,320,837 |
|
447,235,565 |
Cash and cash equivalents at fiscal year-end (Note 3) |
|
296,292,314 |
|
425,320,837 |
|
|
|
|
|
Notes and exhibits are an integral part of these consolidated financial statements. |
|
|
|
|
|
-10- |
|
NOTES TO
THE CONSOLIDATED FINANCIAL STATEMENTS
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)
| 1.1. | 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, 2022.
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 |
The Entity continues to operate in a complex economic
context, signaled by the persistence of high inflation levels, which have reached 94.8% YoY. This scenario is accompanied by volatile
financial variables, including, among others, a country risk indicator which has increased even after the renegotiation of the sovereign
debt with private creditors and the IMF, as well as the imputed exchange rates impacting the outstanding public debt denominated in foreign
currency.
Then, among others resolutions, changes to the tax regime
were made, including changes in the income tax, foreign trade withholdings and new specific regulations were also established enabling
the access to the foreign exchange market, both for individuals and legal entities.
Simultaneously, the public debt restructuring process
continued both under Argentine and foreign laws, including various voluntary swaps and agreements related to the payables to the International
Monetary Fund and the Paris Club, among others.
Particularly, as regards the U.S. dollar price, since
the end of 2019 the gap between the official U.S. dollar price -mainly used for foreign trade- and the alternative values arising from
stock exchange transactions and also with respect to the non-official value significantly widened, reaching about 97% as of the date of
issuance of the accompanying financial statements.
Although as of the date of these financial statements,
certain volatility levels above mentioned have decreased, the national and
|
-11- |
|
international macroeconomic context generates certain
degree of uncertainty regarding its future progress, considering the armed conflict between Russia and Ukraine and the effect of the pandemic
mentioned in note 1.3. Effects of the coronavirus outbreak (Covid-19) in the economic recovery level globally.
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.
1.3. Effects of the coronavirus outbreak
(Covid-19)
In early March 2020, the World Health Organization declared
Coronavirus (Covid-19) a pandemic. This emergency situation over public health was worldwide expanded and several countries took different
measures to contain the effects. This situation and the measures adopted have materially affected the international economy activity with
different impacts on several countries and business lines.
Particularly in the Argentine Republic, along with health
protection rules, tax and financial measures were taken to mitigate the impact on the economy associated with the pandemic, including
public direct financial assistance measures for part of the population, the establishment of financial and fiscal facilities for both
individuals and companies.
The Entity's Management monitors the development of the
situation on an ongoing basis in order to define the actions to be taken and identify their potential impact on its financial position.
As of the date of these financial statements, the above-described
events have not had a material impact on the Entity’s financial position, results of operations and/or cash flows. Management believes
that no material impacts will occur in the future if activity remains, at least, at current levels.
| 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 of the BCRA, as
supplemented). 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
|
-12- |
|
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, 2022 and 2021, its shareholders’ equity
would have been reduced by 4,482,561 and 3,723,823, respectively.
| b) | As of December 31, 2021, the Entity valued
its remaining interest in Prisma Medios de Pago SA (“Prisma”) following the guidelines set forth by applicable standards
and considering a valuation report as of December 31, 2020 issued by independent experts subject to the provisions of Memoranda No. 7/2019
and No. 8/2021 dated April 29, 2019 and May 22, 2021, respectively, received from the BCRA, which set forth specific provisions as regards
the measurement of such interest. Considering those provisions, the Entity has made adjustments to the fair value previously determined
(see Note 12.1). |
In addition, the Bank recognized an adjustment to previous
years’ profits, at the request of the BCRA. By means of Memorandum No. 8/2021 dated May 22, 2021, that is, subsequent to the financial
statements as of December 31, 2020, the Bank was required to adjust the fair value recognized in respect of its equity interest in Prisma
Medios de Pago S.A. as of December 31, 2020.
For disclosure purposes
only, such adjustment had an impact on the items “Investments in Equity Instruments” by 4,209,490 (decrease) and “Unappropriated
retained earnings” by 2,946,642 (net decrease in deferred income tax) in the comparative Consolidated Statement of Financial Position
and in the comparative Consolidated Statement of Changes in Shareholders’ Equity as of December 31, 2021.
In determining the
valuation of such equity interest, the Bank followed the guidelines set out under applicable standards, also considering a valuation report
as of December 31, 2020 issued by independent appraisers.
In March 2022, the
shares corresponding to the abovementioned interest were transferred 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) of previous years
and for the fiscal year 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.
| c) | On May 29, 2017, the BCRA issued Memorandum
No. 6/2017 whereby the Entity was required to account for a provision in liabilities for the reassessment of income tax applying the inflation
adjustment for tax |
|
-13- |
|
purposes. As described in Note 11, such provision
was fully reversed as of December 31, 2021.
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” 7411.
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 6, 2023.
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, 2022 and are rounded to the nearest amount in thousands
of pesos.
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, 2022 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 financial statements as of December
31, 2022 have been restated to be expressed in the purchasing power currency as of that date, as set forth in IAS 29 and considering,
in addition, the particular standards issued by the BCRA in Communications “A” 6651, 6849, as amended and supplemented, which
established that such method should be applied to
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financial statements for fiscal years starting on or 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 "Financial Reporting in Hyperinflationary Economies" 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 restatement, 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 domestic consumer price index (CPI) published by the National Institute
of Statistics and Census (INDEC, as per its Spanish acronym) 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 above, inflation for the
fiscal years ended December 31, 2022 and 2021 was 94.79% and 50.94%, 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. |
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| 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 level 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. Income (loss) for the year from 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 unappropriated 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.
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| 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, 2022 and 2021.
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 returns, 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 returns 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.
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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 related accounting policies consistently with those
applied by the Entity. If necessary, relevant adjustments are made to the financial statements of subsidiaries so that the accounting
policies used by the Group are uniform.
The Entity and its subsidiaries consider the Argentine peso
as their functional and presentation currency.
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, 2022 and 2021, 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 |
City of Buenos Aires |
Argentina |
Financing |
PSA Finance Arg. Cía. Financiera S.A. |
Carlos María Della Paolera 265, piso 22 |
City of Buenos Aires |
Argentina |
Financing |
Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A.(under liquidation proceedings)(1) |
Av. Córdoba 111, piso 22 |
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, piso 30 |
City of Buenos Aires |
Argentina |
Mutual Funds Management |
| (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. |
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As of December 31, 2022 and 2021, 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. |
Common |
52,178 |
50.00% |
50.00% |
50.00% |
50.00% |
Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (under liquidation proceedings) |
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% |
0.00% |
0.00% |
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, 2022.
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.
| 2.3. | Significant accounting policies |
These consolidated financial statements as of December 31,
2022 have been prepared in accordance with the financial reporting framework set forth by the BCRA mentioned in Note 2.1.1 “Applicable
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 introduced during this fiscal
year", the Entity has consistently applied the basis of presentation and consolidation, accounting policies and significant accounting
judgments, estimates and assumptions in the fiscal year reported in these consolidated financial statements, except as indicated in Note
2.5.
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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 could call into question the Entity's ability to continue as a going concern.
Therefore, these consolidated financial statements were 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 cash equivalents
Cash and cash equivalents includes cash, bank deposits, balances
with no restrictions kept with the BCRA and on-demand accounts held at domestic and foreign financial institutions.
Cash and cash equivalents are carried at amortised 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 on the date on which they are originated. All other financial instruments (including ordinary course purchases
and sales of financial assets) are recognized on the trade date, which is the date when the Group becomes party to the contractual provisions
of the instrument.
The Group recognizes purchases of financial instruments with
the commitment to resell at a certain price (repos) as a loan 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 and is accounted for in the line "Interest income" in
the Consolidated Statement of Income.
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.
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However, if the Group determines that the fair value at initial
recognition is different from the consideration received or paid, when the fair value is classified as Level 1 or 2, the financial instrument
is initially recognized at fair value and the difference is recognized in profit or loss. If the fair value at initial recognition is
classified as Level 3, the difference between the fair value and the consideration is deferred.
b) Classification of financial assets
On initial recognition, financial assets are classified and
measured at amortized cost, fair value through other comprehensive income (OCI) or fair value through profit or loss.
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.” |
On initial recognition of an equity investment that is not
held for trading, the Group may, for each individual instrument, present subsequent changes in fair value in OCI.
All other financial assets are classified as measured at
fair value through profit or loss. This category includes derivative financial instruments.
Business model assessment
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 operation
of those policies in practice. 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 contractual cash flows collected; and
-
the frequency, volume and timing of sales in prior periods, the reasons
for such sales and its expectations about future sales activity. 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
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consideration for the time value of money and for the credit
risks associated with the principal amount outstanding. 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; |
| - | prepayment and extension terms; |
| - | terms that limit the Bank's claim to cash flow
from specified assets; and |
| - | features that modify consideration of the time
value of money (e.g. periodical reset of interest rate). |
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 principally for the purpose of selling or repurchasing in the near term, or held as part of a portfolio that is managed together
for short-term profit or position taking. Trading liabilities are initially recognised and subsequently measured at fair value in the
Consolidated Statement of Financial Position, with transaction costs recognised in profit or loss. All changes in fair value are recognised
as part of net trading income in profit or loss.
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) Derecognition of financial assets and liabilities
The Group derecognizes a financial asset when the contractual
rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction
in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither
transfers nor
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retains substantially all of the risks and rewards of ownership
and it does not retain control of the financial asset.
On derecognition of a financial asset, the difference between
the carrying amount of the asset and the consideration received and any balance in OCI is recognized in profit or loss.
The Group derecognizes a financial liability when its contractual
obligations are discharged or settled, or expire. When an existing financial liability is replaced with another from the same borrower
under significantly different conditions, or the conditions are substantially modified, said replacement or modification is treated as
a derecognition of the original liability and the recognition of a new liability, and the difference between both is recognized in profit
or loss.
e) Measurement at amortized cost
The amortized cost of a financial asset or liability is the
amount of its initial recognition less the capital reimbursements, plus or less 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
(doubtful accounts).
f) Impairment of financial assets
By means of Communication “A” 6778, as amended,
the BCRA established the adoption of the expected credit loss model under IFRS 9, point 5.5, on the estimated allowance for loan losses,
excluding the debt securities from the nonfinancial public sector from its scope (hereinafter, “BCRA IFRS 9”), which is applicable
to fiscal years beginning as from January 1, 2020, for Group “A” entities, with a retroactive effect. The impact of the change
in accounting policy was recognized under Unappropriated earning as of January 1, 2019, i.e., the transition date. Until such date, the
Bank applied the impairment model established by the BCRA through Communication “A” 2950 as amended, which requires that allowances
for loan losses be recognized based on the minimum requirements established by the BCRA. See also note 2.5.
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,
-
lease receivables,
-
financial guarantee contracts, and
-
loan commitments.
No impairment is recognized in respect of debt instruments
issued by the non-financial government sector or in respect of equity instruments.
The Bank measures the allowance for loan losses as the expected
credit losses for the following 12 months on financial instruments (other than lease receivables) which have not experienced a significant
increase in credit risk since initial recognition. The expected credit losses for the following 12 months represent the portion of expected
credit losses resulting from a default event on a financial instrument which is likely to occur within 12 months after the reporting period
end.
As for the rest, the Bank measures the allowance for loan
losses at an amount equal to the expected credit losses over the life of the instrument.
Measurement of expected credit losses (ECL)
ECLs are a weighted average, which is calculated by considering:
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-
financial assets that are not impaired at the reporting period end:
the present value of the difference between cash flows owing to the Bank calculated on the basis of contractual terms, and the cash flows
the Bank expects to receive;
-
financial assets that are impaired at the reporting period end: it is
the difference between the carrying amount (before allowances) and the estimated present value of future cash flows;
-
undisbursed loan commitments: the present value of the difference between
contractual cash flows if the Bank grants a loan, and the cash flows the Bank expects to receive;
-
financial guarantee contracts: payments expected to be reimbursed to
the guarantee holder, net of any amount the Bank expects to recover.
Restructured financial assets
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.
Credit-impaired financial assets
At each reporting date the Group assesses whether the financial
assets carried at amortized cost and debt instruments (financial assets) carried at fair value through OCI are credit-impaired. An asset
is credit-impaired if one or more events have occurred and they have a detrimental impact on the estimated future cash flows of the asset.
Evidence that a financial asset is credit-impaired includes
observable data about the following events:
-
significant financial difficulty of the issuer or the borrower,
-
a breach of contract,
-
restructuring of a loan under conditions that the Bank would not otherwise
consider,
-
it becomes probable that the borrower will enter bankruptcy or other
financial reorganization, or
-
The disappearance of an active market for a security because of financial
difficulties.
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.
A loan that was renegotiated due to an impairment in borrower's
credit status is usually deemed impaired, unless objective evidence exists that the risk of not receiving contractual cash flows has decreased,
with no other evidence of impairment. In any event, a restructuring will be deemed to be affected if the decrease in the net present value
of the
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financial obligation is higher than 1% according to the impairment
definition criteria mentioned in the preceding paragraph.
In addition, a consumer loan over 90 days past due is deemed
impaired.
As of December 31, 2021, the Bank considered that the revision
of the definition of credit impairment (noncompliance) in 2021 resulted in a 1,564,189 increase in impaired financial assets. In relation
to the expected credit losses, the impact of such revision was not deemed to be significant, given that most of the transactions concerned
were previously classified as Stage 2 and, therefore, the credit risk coverage was already related to the excepted credit losses for the
entire useful life of the transaction.
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. |
| - | 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. |
| - | Loan commitments and financial guarantees contracts:
recognized under the line Provision for contingent commitments under liabilities, in the Statement of Financial Position. |
Derecognitions
Loans are derecognized (partially or totally) when there
are no realistic expectations of recovery.
g) 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 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 Bank
holds between 20 and 50 percent of the voting power of another entity. A joint venture is an arrangement in which the Group has joint
control whereby the Group has rights to the net assets of the arrangement rather than rights to its assets and obligations for its liabilities.
Investments 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 reduced
to nil, and the recognition of further losses is discontinued, except to the extent that the Group has an obligation or has made payments
on behalf of the investee.
2.3.6. Property and equipment
|
-25- |
|
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.
If significant parts of an item of property and equipment
have different useful lives, they are accounted for as separate items (major components) of property and equipment.
Any gains or losses on disposal of an item of property and
equipment are recognized net within other income in the Statement of Income.
Subsequent expenses are only capitalized if they are likely
to provide future economic benefits for the Group. Ongoing repairs and maintenance are expensed 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.
2.3.7. 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 expenses 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 necessary.
As a non-monetary asset, this item was adjusted for inflation.
2.3.8. 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
amortization”.
|
-26- |
|
Depreciation methods and useful lives are reviewed at each
reporting date and adjusted prospectively, if necessary.
When the use of a property changes such that it is reclassified
as property and equipment, its fair value at the date of reclassification becomes its cost for subsequent accounting. As a non-monetary
asset, this item was adjusted for inflation.
For the purposes of the depreciation calculation, the guidelines
described in 2.3.6. 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.
2.3.9. 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 are 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.
Once classified as held-for-sale, property and equipment
are no longer depreciated.
2.3.10. 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 testing, assets are grouped together into
the smallest group of assets that generates cash inflows for their continued use that is largely independent of the cash inflows from
other assets or other cash generating units (CGU). Goodwill arising from a business combination is allocated to the 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.
An impairment loss for goodwill is not reversed. For other
assets, an impairment loss is reversed only to the extent the carrying amount of the assets does not exceed the amount they would have
been determined if the impairment loss had not been recognized.
2.3.11. Provisions
The Group recognizes a provision if the Group has a present
legal or constructive obligation resulting from past events, it is probable that an outflow of resources will be required to settle the obligation;
and the amount payable can be estimated reliably.
|
-27- |
|
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 are adjusted to reflect the best estimate available.
2.3.12. Personnel benefits
a) Short-term personnel benefits
Short-term personnel benefits are expensed as the related
service is provided. A provision is recognized if the Group has a present legal or constructive obligation to pay this amount as a result
of past services provided by its personnel and the obligation can be estimated reliably.
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.
2.3.13. Share Capital and capital
adjustments
The "Share Capital" account
is presented at its nominal value, in accordance with current regulations, and the difference with its restated amount is presented in
the complementary account “Capital adjustments”.
Transaction costs directly attributable to the issuance of
ordinary shares are recognized as a reduction of the contributions received, net of the related income tax.
2.3.14. 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
financial liability is the amount at which the financial asset or financial liability is measured on initial recognition minus the principal
repayments, plus or minus the
|
-28- |
|
cumulative amortization using the effective interest method
of any difference between that initial amount and the maturity amount and, for financial assets, adjusted for any ECL allowance. The “gross
carrying amount of a financial asset” is the amortized cost of a financial asset before adjusting for any ECL allowance.
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 financial assets that have become credit-impaired
subsequent to 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 the calculation of interest income reverts to the 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.
2.3.15. 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.
Since January 1, 2021, 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.
2.3.16. 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, 2022 and 2021, the Entity had 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:
|
-29- |
|
-
Contracts that contain a lease
At the beginning of the contract, 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 lessor, at the beginning of the contract
the Group 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 the ownership of the leased asset. If so, it classifies it as 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 payments that are substantially fixed;
-
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 collected as guaranteed residual value;
-
The exercise price of call 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 terminated early.
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 the right of use of the leased asset
and the lease liability at the beginning of the contract. The right of use is initially measured at cost, which includes the initial amount
of the lease liability adjusted for any lease payments made before the beginning of the contract, plus initial direct costs incurred and
an estimate of the costs for dismantling or restoring the underlying asset, less any incentives received.
The right of use of the leased asset is then depreciated
on a straight-line basis from the beginning of the contract to the expiration of the lease term.
|
-30- |
|
The lease liability is initially measured at the present
value of the lease payments that were not paid at the beginning of the contract, discounted using the Group’s incremental borrowing
rate.
Lease payments included in the measurement of the lease liability
include the following items:
| - | Fixed payments, including payments that are
substantially fixed; |
| - | Variable payments, which depend on a rate or
index, initially measured applying the rate or index as of the lease commencement date; |
| - | Any amounts expected to be paid as guaranteed
residual value; |
| - | The exercise price of call options, if it is
reasonably certain that they will be exercised; |
| - | Any amounts expected to be paid for renewal
periods if it is reasonably certain that the renewal 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 rate method. It is remeasured when there is a change in future lease payments due to a change in the rate or index,
in the amounts that the Group is expected to pay as guaranteed residual value or if the Group changes the evaluation as regards whether
it will exercise a call, renewal or early termination option.
When the lease liability is remeasured, the relevant adjustment
is recognized in the right of use of the leased asset.
Lease liabilities denominated in US dollars are translated
into the functional currency at the spot exchange rate at the reporting date. Foreign currency differences arising from translation are
recognized in profit or loss.
The Group has elected not to recognize right of use assets
and liabilities for lease of low-value 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 over the lease term.
-
COVID-19-related Rent Concessions
The Group has not adopted the “COVID-19-related rent
concessions” amendment to IFRS 16 Leases. The Group does not apply the practical expedient that allows entities not to assess
whether the eligible rent concessions occurring as a direct consequence of the COVID-19 pandemic are lease modifications. Accordingly,
the Group assesses whether a lease modification exists.
2.3.17. 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.
2.3.18. 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
|
-31- |
|
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 carrying amounts of the assets and liabilities and the related tax bases used for tax purposes.
Deferred tax is not recognized for:
| - | Temporary differences on the initial recognition
of assets or liabilities in a transaction that is not a business combination and that does not affect accounting nor taxable profit or
loss. |
| - | Temporary differences related to an investment
in subsidiaries to the extent that is probable that it will not reverse in the foreseeable future; and |
| - | Taxable temporary differences arising on the
initial recognition of goodwill. |
Deferred tax liabilities are recognized for the tax effect
of all taxable temporary differences.
Deferred tax assets are recognized for unused tax losses
and deductible temporary differences to the extent that it is probable that future taxable profits against which they can be used will
be available. Future taxable profits are determined based on the Bank’s business plans. Deferred tax assets are reviewed at each
reporting date and are reduced to the extent that is no longer probable that the related tax benefit will be realized; while such reductions
are reversed when the probability of future taxable profits improves.
Unrecognized deferred tax assets are reassessed at each reporting
date and recognized to the extent that it becomes probable that future taxable profit against which they can be used will be available.
Deferred tax is measured at the tax rates that are expected
to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.
The measurement of deferred tax reflects the tax consequences
that would follow the manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets
and liabilities.
Deferred tax assets and liabilities are offset only if certain
criteria are met.
| 2.4. | Accounting judgments, estimates and assumptions |
The preparation of these consolidated 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
|
-32- |
|
and liabilities affected. Accounting judgments, estimates
and assumptions are reviewed on an ongoing basis and their effects are 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
2.3 “Significant accounting policies” under the following headings:
| - | Note 2.2. – Determination of the “Basis
of consolidation” regarding the existence of control of other entities |
| - | Note 2.3.4. b) – “Classification
of financial assets” |
| - | Note 2.3.4. f) – “Impairment of
financial assets” |
| - | Note 2.3.16. – “Leases” -
“Contracts containing a lease” |
2.4.2. Assumptions and estimation
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 b.3) – “Valuation techniques
for Levels 2 and 3” |
| - | Nota 2.3.11 – “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 for the sale
of an asset or paid for the transfer of a liability in an orderly transaction between market participants at the measurement date.
When available, the Group measures the fair value of a financial
instrument using the quoted price in an active market. A market is considered active if transactions take place with sufficient frequency
and volume to provide pricing information on an ongoing basis.
If there is no quoted price in an active market, then the
Group uses valuation techniques maximizing the use of relevant market inputs and minimizes the use of unobservable inputs. The selection
of a valuation technique considers all factors market participants would take into consideration for the purposes of setting the price
of the transaction.
Fair values are categorized into different levels in the
fair value hierarchy based on the input data used in the measurement techniques, as follows:
| - | Level 1: quoted prices in active markets
(unadjusted) for identical assets or liabilities. |
| - | Level 2: valuation models using observable
market inputs as significant inputs. |
|
-33- |
|
| - | Level 3: valuation models using unobservable
market inputs as significant inputs. |
2.5. Regulatory changes introduced during
this fiscal year
Implementation of the impairment model Paragraph 5.5 –
IFRS 9 in Group “C” Institutions
On March 19, 2020, the BCRA issued Communication “A”
6938—which term was subsequently extended by Communication “A” 7181 dated December 17, 2020— deferring the application
of the impairment model set forth in paragraph 5.5 of IFRS 9 until fiscal years beginning on or after January 1, 2022 for Group "C"
institutions (PSA Finance Argentina Compañía Financiera S.A. and Volkswagen Financial Services Compañía Financiera
S.A.), which would remain subject to the impairment model established by the BCRA through Communication "A" 2950, as amended.
Such model requires that financial institutions recognize an allowance for loan losses based on the minimum guidelines set forth by the
BCRA.
Pursuant to Communication “A” 7427 dated December
23, 2021, the BCRA extended the application of the aforementioned paragraph until January 1, 2023 at the option of Group “C”
institutions.
Group “C” entities which are part of the Group
did not exercise this option and as from January 1, 2022, they started applying the impairment model under section 5.5. of IFRS 9 related
to expected credit losses, excluding the debt securities from the nonfinancial public sector from its scope, as established by the BCRA.
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 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 liabilities as current and non-current |
The IASB published amendments to paragraphs 69 and 76
of IAS 1 to specify the requirements to classify liabilities as current and non-current. Such amendments clarify certain matters related
to the right to differ the settlement of liabilities and the classification of embedded derivatives. Furthermore, it clarifies that in
cases where a conversion option is classified as a liability or part of a liability, the transfer of equity instruments would constitute
settlement of the liability for the purpose of classifying it as current or non-current. These amendments will be effective for fiscal
years starting on or after January 1, 2024. The Entity does not expect that those amendments have significant impact on the financial
statements.
| b) | Amendment to IAS 1 and IFRS Practice Statement 2 - Disclosures of accounting policies |
|
-34- |
|
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. This standard will be effective as from January 1, 2023. The Entity does not expect that this amendment has significant
impact on the financial statements.
| c) | 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. This standard will be effective as from January 1, 2023.
The Entity does not expect that those amendments have significant impact on the financial statements.
| d) | IFRS 17 Insurance Contracts |
In May 2017, the IASB issued IFRS 17 “Insurance
Contracts” (IFRS 17), a new comprehensive accounting standard for insurance contracts that covers the recognition and measurement,
presentation and disclosure. Once effective, IFRS 17 will replace IFRS 4. IFRS 17 is applicable to all kinds of insurance contracts (i.e.
life, non-life, direct insurance and reinsurance), notwithstanding the kind of entity that issues them. In June 2020, the IASB issued
amendments to IFRS 17. These amendments included to change the effective date to 2023. This standard is not applicable to the Entity.
| e) | 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. This standard will
be effective as from January 1, 2023. The Entity does not expect that those amendments have significant impact on the financial statements.
| f) | Amendment to IFRS 16 – Lease liability in a sale and leaseback |
|
-35- |
|
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 are effective from January 1, 2024.
The Entity does not expect it to have a significant impact 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:
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
BCRA - Current account |
|
161,414,645 |
|
276,574,172 |
Cash |
|
117,455,922 |
|
144,641,271 |
Balances with other local and foreign financial institutions |
|
17,421,747 |
|
4,105,394 |
|
|
|
|
|
TOTAL |
|
296,292,314 |
|
425,320,837 |
| 4. | Debt securities at fair value through profit or loss |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
BCRA Liquidity Bills |
|
14,615,430 |
|
- |
Government securities |
|
10,904,532 |
|
2,719,594 |
Private securities - Corporate bonds |
|
- |
|
1,519 |
|
|
|
|
|
TOTAL |
|
25,519,962 |
|
2,721,113 |
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
|
-36- |
|
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
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Debit balances linked to foreign currency forwards pending settlement in pesos |
|
2,189,239 |
|
5,480,278 |
Premium for put option taken (*) |
|
49,182 |
|
- |
Debit balances linked to interest rate swaps - floating rate for fixed rate |
|
29,780 |
|
6,035 |
|
|
|
|
|
TOTAL |
|
2,268,201 |
|
5,486,313 |
(*) In particular, the Entity subscribed for options
as set forth in Communication “A” 7546 issued by the BCRA.
Liabilities
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Credit balances linked to foreign currency forwards pending settlement in pesos |
|
334,340 |
|
612,069 |
|
|
|
|
|
TOTAL |
|
334,340 |
|
612,069 |
The notional amounts of the forward transactions and foreign
currency forwards, stated in US Dollars (US$) and in Euros as applicable, as well as the base value of interest rate swaps are reported
below:
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Foreign currency forwards |
|
|
|
|
|
|
|
|
|
Foreign currency forward purchases - US$ |
|
1,165,119 |
|
1,189,085 |
Foreign currency forward sales - US$ |
|
1,217,856 |
|
1,129,832 |
Foreign currency forward sales - Euros |
|
1,825 |
|
11,432 |
|
|
|
|
|
Interest rate swaps |
|
|
|
|
|
|
|
|
|
Fixed rate for floating rate (1) |
|
1,500,000 |
|
180,000 |
| (1) | Floating rate: Badlar rate, interest rate for deposits over one million pesos, for a term of 30 to 35
days. |
Breakdown is as follows:
Reverse repurchase transactions
|
-37- |
|
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Amounts receivable for reverse repurchase transactions of BCRA Liquidity Bills with the BCRA |
|
52,564,802 |
|
267,934,977 |
|
|
|
|
|
TOTAL |
|
52,564,802 |
|
267,934,977 |
Repurchase transactions
No repurchase transactions were accounted for as of
December 31, 2022 and 2021.
The breakdown of other financial assets is as follows:
|
|
12.31.22 |
|
12.31.21 |
Measured at amortized cost |
|
|
|
|
|
|
|
|
|
Other receivables |
|
13,762,746 |
|
13,274,395 |
Receivables from sale of ownership interest in Prisma Medios de Pago S.A. (Note 12.1) |
|
10,799,016 |
|
6,670,713 |
Financial debtors from spot transactions pending settlement |
|
4,569,015 |
|
5,092,137 |
Non-financial debtors from spot transactions pending settlement |
|
87,780 |
|
15,775 |
Other |
|
59,788 |
|
384,759 |
|
|
|
|
|
|
|
29,278,345 |
|
25,437,779 |
|
|
|
|
|
Measured at fair value through profit or loss |
|
|
|
|
|
|
|
|
|
Mutual funds |
|
3,926,704 |
|
3,710,885 |
|
|
|
|
|
|
|
3,926,704 |
|
3,710,885 |
|
|
|
|
|
Allowance for loan losses (Exhibit R) |
|
(462,035) |
|
(561,113) |
|
|
|
|
|
TOTAL |
|
32,743,014 |
|
28,587,551 |
| 8. | Loans and other financing |
The Group holds loans and other financing under a business
model intended to collect contractual cash flows. Therefore, it measures loans and other financing at amortized cost. Below is a breakdown
of the related balance:
|
-38- |
|
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Credit cards |
|
274,537,256 |
|
306,094,971 |
Consumer loans |
|
71,324,186 |
|
79,769,338 |
Overdrafts |
|
62,947,418 |
|
43,883,358 |
Discounted instruments |
|
58,508,686 |
|
56,750,248 |
Unsecured instruments |
|
58,203,908 |
|
39,743,482 |
Mortgage loans |
|
38,509,996 |
|
44,624,959 |
Loans for the prefinancing and financing of exports |
|
25,073,189 |
|
25,990,486 |
Pledge loans |
|
24,708,033 |
|
31,832,424 |
Receivables from finance leases |
|
6,388,015 |
|
5,673,027 |
Loans to personnel |
|
4,822,005 |
|
5,681,248 |
Other financial institutions |
|
4,464,832 |
|
8,282,236 |
Instruments purchased |
|
976,266 |
|
3,580,387 |
BCRA |
|
9,034 |
|
- |
Non-financial government sector |
|
1,399 |
|
1,441 |
Other financing |
|
107,512,002 |
|
113,031,226 |
|
|
|
|
|
|
|
737,986,225 |
|
764,938,831 |
|
|
|
|
|
Allowance for loan losses (Exhibit R) |
|
(20,889,723) |
|
(26,595,184) |
|
|
|
|
|
TOTAL |
|
717,096,502 |
|
738,343,647 |
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:
|
|
12.31.22 |
|
12.31.21 |
|
Term |
|
Total investment |
Current value of minimum payments |
|
Total investment |
Current value of minimum payments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Up to 1 year |
|
3,282,675 |
1,388,031 |
|
2,778,486 |
1,564,448 |
|
From 1 to 2 years |
|
3,211,952 |
1,643,654 |
|
2,520,103 |
1,578,789 |
|
From 2 to 3 years |
|
2,542,373 |
1,540,606 |
|
2,035,171 |
1,471,596 |
|
From 3 to 4 years |
|
1,498,386 |
1,061,905 |
|
964,351 |
709,618 |
|
From 4 to 5 years |
|
781,319 |
753,819 |
|
352,803 |
348,576 |
|
|
|
|
|
|
|
|
|
TOTAL |
|
11,316,705 |
6,388,015 |
|
8,650,914 |
5,673,027 |
|
|
|
|
|
|
|
|
|
Principal |
|
|
6,211,711 |
|
|
5,497,098 |
|
Interest accrued |
|
|
176,304 |
|
|
175,929 |
|
|
|
|
|
|
|
|
|
TOTAL |
|
|
6,388,015 |
|
|
5,673,027 |
|
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:
|
-39- |
|
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Total Exhibits B and C |
|
762,224,590 |
|
781,314,865 |
Plus: |
|
|
|
|
BCRA |
|
9,034 |
|
- |
Loans to personnel |
|
4,822,005 |
|
5,681,248 |
Interest and other items accrued receivable from financial assets with credit value impairment |
|
222,709 |
|
883,552 |
Less: |
|
|
|
|
Allowance for loan losses (Exhibit R) |
|
(20,889,723) |
|
(26,595,184) |
Adjustments for effective interest rate |
|
(6,726,213) |
|
(7,097,251) |
Corporate bonds |
|
(3,783,186) |
|
(2,718,067) |
Loan commitments |
|
(18,782,714) |
|
(13,125,516) |
|
|
|
|
|
Total loans and other financing |
|
717,096,502 |
|
738,343,647 |
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.
|
-40- |
|
Trade-related loans
Economic Area/Activity |
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Consumption |
|
388,105,162 |
|
420,590,149 |
Other products |
|
76,722,856 |
|
82,191,166 |
Other |
|
63,090,447 |
|
98,291,398 |
Agriculture and livestock |
|
61,063,424 |
|
31,275,086 |
Retail and wholesale |
|
50,914,465 |
|
54,275,714 |
Mining |
|
25,098,571 |
|
25,440,598 |
Services |
|
24,635,739 |
|
5,711,195 |
Transport |
|
11,734,714 |
|
7,777,202 |
Construction |
|
9,268,637 |
|
4,255,877 |
Other financial institutions |
|
3,396,303 |
|
8,201,091 |
Electricity, oil, water and healthcare services |
|
3,055,751 |
|
332,730 |
Argentine Central Bank (BCRA) |
|
9,034 |
|
- |
Non-financial government sector |
|
1,399 |
|
1,441 |
|
|
|
|
|
TOTAL |
|
717,096,502 |
|
738,343,647 |
As of December 31, 2022 and 2021, the Group holds the following
loan commitments booked in off-balance sheet accounts according to the financial reporting framework set forth by the BCRA:
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Liabilities related to foreign trade transactions |
|
8,474,253 |
|
4,670,457 |
Secured loans |
|
6,648,750 |
|
4,567,326 |
Overdrafts and receivables agreed not used |
|
2,120,342 |
|
2,224,017 |
Guarantees granted |
|
1,539,369 |
|
1,663,716 |
|
|
|
|
|
TOTAL |
|
18,782,714 |
|
13,125,516 |
Risks related to the aforementioned loan commitments are
assessed and controlled within the framework of the Group's credit risks policy (Note 42.1.).
Financing line for productive investments
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 2020, 2021,
2021/2022, 2022 and 2022/2023 Quotas, pursuant to the following conditions:
|
-41- |
|
Item |
2020 Quota |
2021 Quota |
2021/2022 Quota |
2022 Quota |
2022/2023 Quota |
Applicable rule |
“B” 12161 |
“B” 12164 |
“B” 12238 |
“B” 12326 |
“B” 12413 – “A” 7612 |
Amount to be granted |
At least, the equivalent to 7.5% of the monthly average of daily balances of non-financial private sector deposits in pesos a month prior to the beginning of the period. |
Calculation of application |
Between 10.16.2020 and 03.31.2021 |
Between 04.01.2021 and 09.30.2021 |
Between 10.01.2021 and 03.31.2022 |
Between 04.01.2022 and 09.30.2022 |
Between 10.01.2022 and 03.31.2023 |
Maximum interest rate |
Interest rate shall be capped at an annual nominal fixed rate of 35% for investment projects and at a nominal annual fixed rate of 45.5% for other purposes. |
Interest rate shall be capped at a nominal annual fixed rate of 64.50% for investment projects and at a nominal annual fixed rate of 75.50% for other purposes. |
Currency |
Pesos |
Minimum rate |
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, 2022, 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) |
2020 Quota |
19,730,132 |
25,291,147 |
39,279,053 |
2021 Quota |
24,449,302 |
30,093,764 |
41,734,860 |
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 |
42,867,291 |
(*) |
(*) |
(*) As of the date of these financial statements, the term
reported by Communication “B” 12413 has not expired.
(1) The amounts are exposed in nominal currency.
|
-42- |
|
9.
Other debt securities
9.1. Financial assets measured
at amortized cost
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Argentine Treasury Bond in pesos at 43.25% fixed rate or CER+1%, the lower. Maturity May 2027 |
|
32,432,677 |
|
- |
Argentine Treasury Bond in pesos at 0.7% Private Badlar Rate. Maturity 11-23-2027 |
|
12,094,420 |
|
- |
Argentine Treasury Bond in pesos at 22% fixed rate. Maturity May 2022 |
|
- |
|
43,956,008 |
|
|
|
|
|
TOTAL |
|
44,527,097 |
|
43,956,008 |
9.2. Financial assets measured at
fair value through OCI
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
BCRA Liquidity Bills |
|
468,895,259 |
|
209,779,172 |
Government securities |
|
125,832,474 |
|
103,965,304 |
Private securities - Corporate bonds |
|
3,722,935 |
|
2,648,245 |
BCRA Local Bills |
|
2,125,540 |
|
- |
|
|
|
|
|
TOTAL |
|
600,576,208 |
|
316,392,721 |
| 10. | Financial assets pledged as collateral |
The breakdown of the financial assets pledged as collateral
as of December 31, 2022 and 2021 is included below:
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Guarantee trust - Government securities at fair value through OCI |
(2) |
16,699,438 |
|
8,988,656 |
BCRA - Special guarantee accounts (Note 46.1) |
(1) |
13,866,345 |
|
14,215,377 |
Deposits as collateral |
(3) |
8,237,870 |
|
7,949,925 |
Guarantee trust - USD |
(4) |
7,391,466 |
|
8,352,146 |
|
|
|
|
|
TOTAL |
|
46,195,119 |
|
39,506,104 |
| (1) | Special guarantee current accounts opened at the BCRA for transactions related to the automated clearing
houses and other similar entities. |
| (2) | Set up as collateral to operate with “Rosario Futures Exchange (ROFEX), Bolsas y Mercados Argentinos
SA (BYMA) and Mercado Abierto Electrónico S.A (MAE)” on foreign currency forward transactions and futures contracts. The
trust fund consists of government securities. |
| (3) | Deposits pledged as collateral for activities related to credit card transactions in the country and abroad,
leases and futures contracts. |
| (4) | The trust is composed of dollars in cash as collateral for activities related to the transactions on MAE
and BYMA. |
|
-43- |
|
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 charge to profit or loss for the year in which its reversion occurs, also considering the possibility of taking advantage
of tax losses in the future.
| a) | Current income tax assets |
Below is a breakdown of the current income tax assets
disclosed in the statement of financial position:
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Income tax assets |
|
- |
|
4,390,609 |
Advances |
|
38,707 |
|
711 |
|
|
|
|
|
|
|
38,707 |
|
4,391,320 |
| b) | Current income tax liabilities |
Below is a breakdown of the current income tax liabilities
disclosed in the statement of financial position:
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Income tax provision |
|
8,108,398 |
|
942,536 |
Advances |
|
(762,791) |
|
(185,191) |
Collections and withholdings |
|
(97,528) |
|
(67,253) |
|
|
|
|
|
|
|
7,248,079 |
|
690,092 |
The deferred tax assets and liabilities disclosed in the statement of financial
position are as follows:
|
-44- |
|
Deferred tax assets: |
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Loan loss allowance |
|
5,032,361 |
|
5,815,236 |
Provisions |
|
12,614,464 |
|
7,918,754 |
Loan and credit card commissions |
|
1,221,034 |
|
989,255 |
Derivatives |
|
- |
|
25,456 |
Tax inflation adjustment |
|
2,485,078 |
|
7,193,907 |
Other |
|
43 |
|
1,588 |
Tax losses |
|
882,062 |
|
297,125 |
Investments |
|
5,683 |
|
2,876 |
|
|
|
|
|
Total deferred assets |
|
22,240,725 |
|
22,244,197 |
|
|
|
|
|
Deferred tax liabilities: |
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Intangible Assets |
|
(4,838,582) |
|
(4,265,328) |
Property and Equipment |
|
(13,011,796) |
|
(27,473,603) |
Investments |
|
(9,527,175) |
|
(4,756,220) |
Leasing and other items |
|
(34,583) |
|
(32,645) |
|
|
|
|
|
Total deferred liabilities |
|
(27,412,136) |
|
(36,527,796) |
|
|
|
|
|
|
|
|
|
|
Net deferred tax liabilities |
|
(5,171,411) |
|
(14,283,599) |
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. Considering the above, below is a breakdown of the deferred
income tax assets and liabilities disclosed in the consolidated statement of financial position:
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Deferred income tax assets |
|
1,520,164 |
|
1,707,156 |
Deferred income tax liabilities |
|
(6,691,575) |
|
(15,990,755) |
|
|
|
|
|
Net deferred tax liabilities |
|
(5,171,411) |
|
(14,283,599) |
|
-45- |
|
Below are the main components of the income tax (expense)/benefit
in the consolidated financial statements for the year:
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Current income tax liabilities |
|
(8,738,980) |
|
14,079,382 |
Deferred income tax |
|
4,816,307 |
|
(13,923,983) |
|
|
|
|
|
Income tax recognized through profit or loss |
|
(3,922,673) |
|
155,399 |
|
|
|
|
|
Income tax recognized through OCI |
|
3,805,803 |
|
(389,109) |
|
|
|
|
|
Total income tax |
|
(116,870) |
|
(233,710) |
The income tax expense for the fiscal year ended December
31, 2022 was calculated considering the position presented by the Entity before AFIP, as stated under “Inflation adjustment for
tax purposes. Fiscal year 2021” to this Note.
Furthermore, the income tax benefit for the fiscal year ended
December 31, 2021 includes the impact of the calculation of the inflation adjustment for tax purposes and the reversal of the provision
required by the BCRA, as mentioned in the section “Income tax– Inflation adjustment for tax purposes. Fiscal years 2016, 2017
and 2018” of this Note.
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, 2022, comparative with the previous year:
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Income before income tax |
|
61,857,044 |
|
41,067,576 |
Income tax rate |
|
35% |
|
35% |
|
|
|
|
|
Tax on taxable income |
|
21,649,965 |
|
14,373,652 |
|
|
|
|
|
Permanent differences: |
|
|
|
|
Non-taxable income |
|
(148,549) |
|
(579,241) |
Non-income tax deductible expenses |
|
152,789 |
|
284,293 |
Effect of tax rate change |
|
(520,492) |
|
2,876,256 |
Other |
|
- |
|
125,248 |
Accounting inflation adjustment |
|
65,241,259 |
|
37,669,062 |
Tax inflation adjustment |
|
(82,362,333) |
|
(39,869,480) |
Recovery of allowance for filing actions |
|
- |
|
(13,084,114) |
2021 tax return adjustment |
|
(89,966) |
|
(1,951,075) |
|
|
|
|
|
Income tax expense / (benefit) |
|
3,922,673 |
|
(155,399) |
|
-46- |
|
| e) | Inflation adjustment for tax purposes |
Law No. 27,430 of Tax Reform, as amended by Laws No. 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 tax
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 end of the reporting fiscal year; |
| 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 years of application, respectively; |
| iii. | The effect of the positive or negative inflation
adjustment for tax purposes, as the case may be, corresponding to the first, second and third fiscal years started on or after January
1, 2018, is charged one third in that tax year and the remaining two thirds, in equal parts, in the two immediately following tax 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, is charged one-sixth in the tax year
in which the adjustment is determined and the remaining five-sixths in the immediately following tax years; 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, 2022, 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.
| f) | 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 the current income tax using the progressive tax rate that is expected to be 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.
| - | 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.
|
-47- |
|
24073, section 4 of Law No. 25561, section 5 of Decree
No. 214/02 issued by the Argentine Executive, Law No. 27468 and any other regulation whereby the inflation adjustment mechanism provided
for under Law No. 20628, 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. Accordingly, the judgment rendered by the Appellate Court in favor of the Bank's interests became final.
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 (3,086,715 in values restated as of December 31, 2022).
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
|
-48- |
|
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 (9,997,399
in values restated as of December 31, 2022), 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.
Based on the foregoing, as of December 31, 2022, 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
|
-49- |
|
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 (16,695,615 in restated values), with the ensuing impact on deferred tax assets by 5,033,000 (decrease) (14,798,331 in restated
values) and on the income tax expense of 784,000 (1,897,285 in restated values).
| - | 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.
| - | 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 the grounds 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
|
-50- |
|
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. The proceedings are being handled by the Supreme Court.
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.
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.
|
-51- |
|
| 12. | 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.
12.1 Investments in equity instruments
through profit or loss
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Private securities - Shares in other non-controlled companies |
|
877,879 |
|
748,613 |
Prisma Medios de Pago S.A. (1) |
|
- |
|
3,500,391 |
|
|
|
|
|
TOTAL |
|
877,879 |
|
4,249,004 |
(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$ 40,038,121.84. 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.
12.2 Investments in equity instruments
through other comprehensive income
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Banco Latinoaméricano de Exportaciones S.A. |
|
58,025 |
|
67,307 |
Other |
|
2,443 |
|
2,981 |
|
|
|
|
|
TOTAL |
|
60,468 |
|
70,288 |
| 13. | Investments in associates |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
BBVA Seguros Argentina S.A. |
|
1,197,152 |
|
1,325,212 |
Rombo Compañía Financiera S.A. |
|
744,208 |
|
1,539,529 |
Interbanking S.A. |
|
823,993 |
|
623,016 |
Play Digital S.A. (1) |
|
486,571 |
|
222,162 |
Openpay Argentina S.A. |
|
215,501 |
|
285,733 |
|
|
|
|
|
TOTAL |
|
3,467,425 |
|
3,995,652 |
(1) In order to determine the value of this investment,
the accounting information of Play Digital S.A. as of September 30, 2022 has been used. In addition, the significant transactions made
or events occurred between October 1, 2022 and December 31, 2022 were considered. See Note 53 – Subsequent events.
| 14. | Property and equipment |
|
-52- |
|
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Real estate |
|
70,810,561 |
|
72,409,283 |
Furniture and facilities |
|
12,769,142 |
|
13,641,782 |
Right of use of leased real estate |
|
5,855,708 |
|
6,698,434 |
Constructions in progress |
|
3,270,148 |
|
2,185,255 |
Machinery and equipment |
|
3,118,798 |
|
4,071,597 |
Vehicles |
|
280,037 |
|
184,925 |
|
|
|
|
|
TOTAL |
|
96,104,394 |
|
99,191,276 |
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 real estate, the carrying amount of the certain pieces of real estate exceeds their
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:
Item |
|
Impairment |
|
|
12.31.2022 |
|
12.31.2021 |
|
|
|
|
|
Real Estate - Lavallol |
|
(21,502) |
|
(14,500) |
Real Estate - Monte Grande |
|
(95,769) |
|
(58,925) |
Real Estate - Caleta Olivia, Santa Cruz |
|
(23,915) |
|
- |
Real Estate - Cerro Las Rosas |
|
(49,898) |
|
- |
Real Estate - Libertador |
|
(350,613) |
|
- |
Real Estate - Store 1 Puerto Madero |
|
(132,586) |
|
- |
Real Estate - Store 5 Puerto Madero |
|
(82,755) |
|
- |
Real Estate - Mar del Plata |
|
(9,708) |
|
- |
Real Estate - Bahía Blanca |
|
(10,440) |
|
- |
|
|
|
|
|
TOTAL |
|
(777,186) |
|
(73,425) |
The changes in this item for year 2022 are reported in Exhibit
F, and the changes for year 2021 are reported below:
|
|
|
|
|
|
|
|
|
|
|
|
ITEM |
Original value as of 01.01.21 |
Total estimated useful life in years |
Additions |
Derecognitions |
Impairment |
|
Depreciation |
Residual value as of 12.31.2021 |
Loss |
|
Accumulated as of 01.01.21 |
Derecognitions |
For the year |
At year end |
|
|
|
|
|
|
|
|
|
|
|
|
Real estate |
75,181,977 |
50 |
5,614,892 |
33,121 |
73,425 |
|
6,542,286 |
33,121 |
1,771,875 |
8,281,040 |
72,409,283 |
|
|
|
|
|
|
|
|
|
|
|
|
Furniture and facilities |
23,676,431 |
10 |
1,676,985 |
669,115 |
- |
|
9,201,800 |
669,112 |
2,509,831 |
11,042,519 |
13,641,782 |
|
|
|
|
|
|
|
|
|
|
|
|
Machinery and equipment |
13,098,083 |
10 |
1,644,325 |
4,584,372 |
- |
|
6,803,537 |
4,584,372 |
3,867,274 |
6,086,439 |
4,071,597 |
|
|
|
|
|
|
|
|
|
|
|
|
Vehicles |
468,158 |
10 |
87,462 |
25,329 |
- |
|
299,442 |
28,838 |
74,762 |
345,366 |
184,925 |
|
|
|
|
|
|
|
|
|
|
|
|
Right of use of leased properties |
12,011,552 |
10 |
1,631,030 |
726,563 |
- |
|
4,204,777 |
20,435 |
2,033,243 |
6,217,585 |
6,698,434 |
|
|
|
|
|
|
|
|
|
|
|
|
Constructions in progress |
1,902,057 |
- |
1,482,711 |
1,199,513 |
- |
|
- |
- |
- |
- |
2,185,255 |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
126,338,258 |
|
12,137,405 |
7,238,013 |
73,425 |
|
27,051,842 |
5,335,878 |
10,256,985 |
31,972,949 |
99,191,276 |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Licenses - Software |
|
9,617,561 |
|
7,159,804 |
|
|
|
|
|
TOTAL |
|
9,617,561 |
|
7,159,804 |
|
-53- |
|
The changes in this item for year 2022 are reported in Exhibit
“G”, and the changes for year 2021 are reported below:
ITEM |
Original value as of 01.01.21 |
Total estimated useful life in years |
Additions |
Derecognitions |
Impairment |
|
Depreciation |
Residual value as of 12.31.2021 |
Loss |
|
Accumulated as of 01.01.21 |
Derecognitions |
For the year |
At year end |
|
|
|
|
|
|
|
|
|
|
|
|
Licenses - Software |
7,305,848 |
5 |
3,529,654 |
1,684,813 |
- |
|
2,737,022 |
1,167,372 |
421,235 |
1,990,885 |
7,159,804 |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
7,305,848 |
|
3,529,654 |
1,684,813 |
- |
|
2,737,022 |
1,167,372 |
421,235 |
1,990,885 |
7,159,804 |
|
-54- |
|
| 16. | Other non-financial assets |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Investment properties |
|
19,737,520 |
|
5,454,122 |
Prepayments |
|
3,567,227 |
|
6,391,905 |
Tax advances |
|
2,546,262 |
|
2,020,599 |
Advances to personnel |
|
1,597,335 |
|
1,423,642 |
Advances to suppliers of goods |
|
900,865 |
|
986,280 |
Other miscellaneous assets |
|
498,605 |
|
555,129 |
Assets acquired as security for loans |
|
26,340 |
|
28,070 |
Other |
|
267,806 |
|
285,330 |
|
|
|
|
|
TOTAL |
|
29,141,960 |
|
17,145,077 |
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 this item for year 2022 are reported in Exhibit
F, and the changes for year 2021 are reported below:
ITEM |
Original value as of 01.01.21 |
Total estimated useful life in years |
Additions |
Derecognitions |
Impairment |
|
Depreciation |
Residual value as of 12.31.2021 |
Loss |
|
Accumulated as of01.01.21 |
Derecognitions |
For the year |
At year end |
|
|
|
|
|
|
|
|
|
|
|
|
Leased properties |
5,493,993 |
50 |
- |
- |
- |
|
332,771 |
- |
93,787 |
426,558 |
5,067,435 |
|
|
|
|
|
|
|
|
|
|
|
|
Other investment properties |
446,411 |
10 |
- |
- |
- |
|
49,795 |
- |
9,929 |
59,724 |
386,687 |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
5,940,404 |
|
- |
- |
|
|
382,566 |
- |
103,716 |
486,282 |
5,454,122 |
| 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.
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Property and equipment held for sale |
|
225,079 |
|
588,486 |
|
|
|
|
|
TOTAL |
|
225,079 |
|
588,486 |
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 two pieces of property exceeds its recoverable
value. Therefore, such amount should be written down to the recoverable value.
On July 13, 2022, the Fundación BBVA real estate property
booked under this account was sold. The profit (loss) on the sale was booked under “Other operating income - Profit (loss) on the
sale of noncurrent assets held for sale” (Note 34).
|
-55- |
|
The impairment of non-current assets held for sale is reported
below:
Item |
|
Impairment |
|
|
12.31.2022 |
|
12.31.2021 |
|
|
|
|
|
Real Estate held for sale - Fisherton |
|
(87,487) |
|
(75,821) |
Real Estate held for sale - Mendoza |
|
(396) |
|
- |
|
|
|
|
|
TOTAL |
|
(87,883) |
|
(75,821) |
The information on concentration of deposits is disclosed
in Exhibit H. Breakdown is as follows:
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Non-financial government sector |
|
9,680,134 |
|
25,857,759 |
Financial sector |
|
340,009 |
|
423,287 |
Non-financial private sector and residents abroad |
|
1,303,800,085 |
|
1,353,508,964 |
Savings accounts |
|
499,037,378 |
|
555,534,445 |
Time deposits |
|
414,773,153 |
|
336,738,717 |
Checking accounts |
|
253,464,723 |
|
331,959,368 |
Investment accounts |
|
125,945,113 |
|
116,623,934 |
Other |
|
10,579,718 |
|
12,652,500 |
|
|
|
|
|
TOTAL |
|
1,313,820,228 |
|
1,379,790,010 |
| 19. | Liabilities at fair value through profit or loss |
No transactions were accounted for the years ended on
December 31, 2022 and 2021.
| 20. | Other financial liabilities |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Obligations from financing of purchases |
|
82,584,306 |
|
89,019,876 |
Collections and other transactions on behalf of third parties |
|
8,428,501 |
|
10,168,381 |
Payment orders pending credit |
|
6,527,468 |
|
4,415,163 |
Funds collected under AFIP's instructions |
|
4,680,637 |
|
2,180,209 |
Liabilities for leases (Note 25) |
|
4,126,737 |
|
5,691,452 |
Receivables from spot purchases pending settlement |
|
3,902,928 |
|
2,782,670 |
Credit balance for spot purchases or sales pending settlement |
|
2,656,925 |
|
12,015 |
Commissions accrued payable |
|
40,843 |
|
68,565 |
Other |
|
5,484,076 |
|
5,639,465 |
|
|
|
|
|
TOTAL |
|
118,432,421 |
|
119,977,796 |
|
-56- |
|
| 21. | Financing received from the BCRA and other financial institutions |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Local financial institutions |
|
19,225,493 |
|
22,815,092 |
Foreign financial institutions |
|
559,652 |
|
- |
BCRA |
|
87,997 |
|
88,691 |
|
|
|
|
|
TOTAL |
|
19,873,142 |
|
22,903,783 |
| 22. | Corporate bonds issued |
Below is a detail of outstanding corporate bonds as
of December 31, 2022 and 2021 of the Bank and its subsidiaries:
Detail |
|
Issuance date |
|
Nominal value |
|
Maturity date |
|
Annual Nominal Rate |
|
Payment of interest |
|
Outstanding securities as of 12.31.22 |
|
Outstanding securities as of 12.31.2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class 8 Volkswagen Financial Services |
|
09.30.2020 |
|
5,158 |
|
03.30.2023 |
|
UVA (class 8 ) |
|
Quarterly |
|
60,000 |
|
584,379 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consolidated Principal |
|
60,000 |
|
584,379 |
|
|
|
|
|
|
|
|
Consolidated Interest Accrued |
|
131,183 |
|
395,381 |
|
|
|
|
|
|
|
|
Total Consolidated Principal and Interest Accrued |
|
191,183 |
|
979,760 |
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).
23.Provisions
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Provision for contingent commitments (Exhibits J and R) |
|
2,694,198 |
|
1,662,857 |
Provisions for termination plans (Exhibit J) |
|
454,017 |
|
512,723 |
For administrative, disciplinary and criminal penalties (Note 51 and Exhibit J) |
|
5,000 |
|
9,740 |
Provisions for reorganization (Exhibit J) |
|
- |
|
2,616,915 |
Other contingencies (Exhibit J) |
|
5,516,230 |
|
6,131,735 |
Provision for commercial lawsuits |
|
3,496,091 |
|
4,735,527 |
Provision for labor lawsuits |
|
614,825 |
|
552,679 |
Provision for tax lawsuits |
|
594,810 |
|
627,828 |
Other |
|
810,504 |
|
215,701 |
|
|
|
|
|
TOTAL |
|
8,669,445 |
|
10,933,970 |
It includes the estimated amounts to pay highly likely
liabilities which, in case of occurrence, would generate a loss for the Entity.
|
-57- |
|
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. |
| - | Provisions for reorganization:
Consistent with the goal of further aligning the organizational structure with the corporate strategy during the current year, achieving
efficiency gains and streamlining the decision-making process across all work teams. |
| - | 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, 2022 will originate the following cash disbursements:
Provisions |
|
|
Within 12 months |
After 12 months |
|
|
|
|
|
|
|
Provisions for termination plans |
|
|
273,772 |
180,245 |
For administrative, disciplinary and criminal penalties |
|
|
- |
5,000 |
For contingent comitments |
|
|
2,694,198 |
- |
Other contingencies |
|
|
1,698,768 |
3,817,462 |
Provision for labor lawsuits |
|
|
116,589 |
498,236 |
Provision for commercial lawsuits |
|
|
814,865 |
2,681,226 |
Provision for tax lawsuits |
|
|
594,810 |
- |
Other |
|
|
172,504 |
638,000 |
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 163 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 34,801, out of which a cash disbursement
of approximately 34,801 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
|
-58- |
|
cases involve cash disbursements is possible but not
probable and that the potential cash disbursements are not material.
|
-59- |
|
| 24. | Other non-financial liabilities |
Breakdown is as follows:
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Miscellaneous creditors |
|
38,022,048 |
|
26,485,259 |
Advances collected |
|
19,631,488 |
|
15,893,196 |
Other collections and withholdings |
|
17,503,291 |
|
16,689,147 |
Short-term personnel benefits |
|
17,484,563 |
|
17,335,007 |
Cash dividends payable (Note 43) |
|
14,834,791 |
|
54,542,068 |
Other taxes payable |
|
7,078,668 |
|
4,876,021 |
Long-term personnel benefits |
|
916,273 |
|
1,081,224 |
Termination benefits payable |
|
897,528 |
|
- |
For contract liabilities |
|
449,646 |
|
717,522 |
Social security payment orders pending settlement |
|
306,676 |
|
157,095 |
Other |
|
567,503 |
|
335,697 |
|
|
|
|
|
TOTAL |
|
117,692,475 |
|
138,112,236 |
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, 2022:
Rights of use under leases
The changes in this item for fiscal year 2022 are reported
in Exhibit F, while the changes for fiscal year 2021 are reported in Note 14 – Property and equipment.
Lease liabilities
Future minimum payments for lease agreements are as
follows:
|
In foreign currency |
|
In local currency |
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
|
|
|
Up to one year |
272,181 |
|
36,957 |
|
309,138 |
|
442,973 |
|
|
|
|
|
|
|
|
From 1 to 5 years |
2,824,095 |
|
332,634 |
|
3,156,729 |
|
3,954,784 |
|
|
|
|
|
|
|
|
More than 5 years |
651,546 |
|
9,324 |
|
660,870 |
|
1,293,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
4,126,737 |
|
5,691,452 |
|
-60- |
|
Interest and exchange rate difference recognized
in profit or loss
|
|
|
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
|
|
|
Other operating expenses |
|
|
|
|
|
|
Interest on liabilities from finance lease (Note 38) |
|
|
(621,630) |
|
(903,203) |
|
|
|
|
|
|
|
|
Exchange rate difference |
|
|
|
|
|
|
|
Exchange rate difference for finance lease (loss) |
|
(4,141,131) |
|
(3,126,241) |
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. 25738, 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 financial institution.
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Interest on government securities |
|
256,501,695 |
|
104,122,019 |
Stabilization Coefficient (CER) clause adjustment |
|
82,083,427 |
|
35,685,175 |
Interest on credit card loans |
|
62,619,226 |
|
49,780,744 |
Interest on other loans |
|
44,405,294 |
|
33,077,508 |
Interest on instruments |
|
39,596,631 |
|
28,643,882 |
Interest on consumer loans |
|
32,075,984 |
|
28,325,500 |
Premiums on reverse repurchase agreements |
|
31,858,523 |
|
73,245,986 |
Acquisition Value Unit (UVA) clause adjustment |
|
31,382,577 |
|
27,161,517 |
Interest on overdrafts |
|
28,767,653 |
|
16,494,956 |
Interest on pledge loans |
|
10,611,023 |
|
10,849,682 |
Interest on mortgage loans |
|
3,042,462 |
|
3,353,342 |
Interest on loans to the financial sector |
|
2,495,452 |
|
2,064,828 |
Interest on finance leases |
|
1,971,750 |
|
1,864,308 |
Interest on loans for the prefinancing and financing of exports |
|
725,826 |
|
1,906,230 |
Interest on private securities |
|
662,812 |
|
305,251 |
Other |
|
549,280 |
|
1,735,828 |
|
|
|
|
|
TOTAL |
|
629,349,615 |
|
418,616,756 |
|
-61- |
|
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Time deposits |
|
214,124,699 |
|
133,194,794 |
Checking accounts deposits |
|
39,664,114 |
|
26,886,481 |
Acquisition Value Unit (UVA) clause adjustment |
|
25,111,539 |
|
9,201,782 |
Interfinancial loans received |
|
8,698,548 |
|
5,421,401 |
Savings accounts deposits |
|
1,604,249 |
|
1,016,781 |
Other liabilities from financial transactions |
|
673,415 |
|
1,644,297 |
Premiums on reverse repurchase transactions |
|
26,871 |
|
5,515 |
Other |
|
6,223 |
|
8,320 |
|
|
|
|
|
TOTAL |
|
289,909,658 |
|
177,379,371 |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Linked to liabilities |
|
33,755,718 |
|
32,811,467 |
From credit cards |
|
33,118,776 |
|
39,898,039 |
Linked to loans |
|
6,650,776 |
|
5,375,823 |
From foreign trade and foreign currency transactions |
|
3,521,768 |
|
4,008,489 |
From insurance |
|
3,521,043 |
|
3,840,993 |
Linked to securities |
|
907,751 |
|
1,128,510 |
From guarantees granted |
|
3,554 |
|
18,311 |
|
|
|
|
|
TOTAL |
|
81,479,386 |
|
87,081,632 |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
For credit and debit cards |
|
25,228,262 |
|
32,271,058 |
For payment of salaries |
|
2,552,863 |
|
2,788,120 |
For data processing |
|
1,529,968 |
|
625,367 |
For new channels |
|
1,295,894 |
|
1,090,280 |
For foreign trade transactions |
|
985,471 |
|
993,322 |
For advertising campaigns |
|
258,602 |
|
- |
For digital sales services |
|
60,028 |
|
177,633 |
Linked to transactions with securities |
|
15,701 |
|
23,315 |
For promotions |
|
- |
|
102,091 |
Other commission expenses |
|
2,809,769 |
|
2,907,803 |
|
|
|
|
|
TOTAL |
|
34,736,558 |
|
40,978,989 |
|
-62- |
|
| 31. | Net income / (loss) from financial instruments carried at fair value through profit
or loss |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Income from government securities |
|
10,679,557 |
|
5,290,090 |
Income from sale or write-off of financial assets (1) |
|
4,388,676 |
|
- |
Income/(loss) from private securities |
|
1,535,840 |
|
(898,934) |
Income from foreign currency forward transactions |
|
1,492,046 |
|
6,309,957 |
Income from interest rate swaps |
|
101,095 |
|
94,492 |
Income from corporate bonds |
|
19,644 |
|
8,717 |
Loss from loans |
|
21 |
|
- |
Loss from put option taken (2) |
|
(34,657) |
|
(2,302,454) |
Other |
|
(5,301) |
|
- |
|
|
|
|
|
TOTAL |
|
18,176,921 |
|
8,501,868 |
(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
(see additionally Note 12.1).
(2) For further information as of December 31, 2021, see
Note 12.1.
| 32. | Net income / (loss) from derecognition of assets carried at amortized cost and at
fair value through other comprehensive income |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Income/(Loss) from sale of government securities |
|
217,979 |
|
(237,182) |
Income/(Loss) from sale of private securities |
|
71,969 |
|
(1,044) |
|
|
|
|
|
TOTAL |
|
289,948 |
|
(238,226) |
| 33. | Foreign exchange and gold gains (losses) |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Income from purchase-sale of foreign currency |
|
12,494,497 |
|
12,917,412 |
Conversion of foreign currency assets and liabilities into pesos |
|
(4,417,520) |
|
(2,126,706) |
|
|
|
|
|
TOTAL |
|
8,076,977 |
|
10,790,706 |
| 34. | Other operating income |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Adjustments and interest on miscellaneous receivables |
|
6,829,641 |
|
4,918,830 |
Loans recovered |
|
3,361,917 |
|
2,821,691 |
Rental of safe deposit boxes |
|
2,925,146 |
|
3,117,323 |
Debit and credit card commissions |
|
1,522,153 |
|
1,177,878 |
Income from asset sale in equity instruments (1) |
|
1,515,485 |
|
- |
Fees expenses recovered |
|
825,182 |
|
752,919 |
Allowances reversed |
|
737,769 |
|
666,066 |
Rent |
|
611,191 |
|
- |
Punitive interest |
|
479,681 |
|
442,715 |
Income from sale of non-current assets held for sale (Note 17) |
|
456,042 |
|
- |
Commission from syndicated transactions |
|
263,789 |
|
198,824 |
Income from initial recognition of government securities |
|
- |
|
29,794 |
Other operating income |
|
1,634,197 |
|
1,635,783 |
|
|
|
|
|
TOTAL |
|
21,162,193 |
|
15,761,823 |
(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.
|
-63- |
|
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Salaries |
|
37,440,628 |
|
36,440,043 |
Other short-term personnel benefits |
|
13,820,668 |
|
10,535,005 |
Social security withholdings and collections |
|
11,746,203 |
|
10,807,161 |
Personnel compensation and bonuses |
|
2,851,951 |
|
1,453,204 |
Personnel services |
|
1,512,186 |
|
1,143,901 |
Termination personnel benefits (Exhibit J) |
|
224,244 |
|
252,580 |
Other long-term personnel benefits |
|
381,568 |
|
361,501 |
|
|
|
|
|
TOTAL |
|
67,977,448 |
|
60,993,395 |
| 36. | Administrative expenses |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Taxes |
|
14,459,626 |
|
13,357,525 |
Rent |
|
10,497,523 |
|
7,966,763 |
Armored transportation services |
|
7,275,411 |
|
8,017,658 |
Maintenance and repair costs |
|
6,616,785 |
|
6,947,956 |
Contracted administrative services |
|
6,197,804 |
|
6,230,705 |
IT |
|
5,719,497 |
|
3,288,336 |
Advertising |
|
3,509,024 |
|
3,072,843 |
Electricity and communications |
|
2,479,506 |
|
2,773,520 |
Other fees |
|
2,279,254 |
|
2,690,136 |
Documents distribution |
|
2,197,800 |
|
1,836,084 |
Security services |
|
1,799,102 |
|
2,078,355 |
Trade reports |
|
1,247,731 |
|
1,175,119 |
Insurance |
|
645,592 |
|
742,295 |
Representation and travel expenses |
|
643,792 |
|
316,949 |
Fees to Banks Directors and Supervisory Committee |
|
114,791 |
|
127,768 |
Stationery and supplies |
|
85,660 |
|
125,426 |
Other administrative expenses |
|
2,372,825 |
|
2,428,515 |
|
|
|
|
|
TOTAL |
|
68,141,723 |
|
63,175,953 |
| 37. | Depreciation and amortization |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Depreciation of property and equipment (Exhibit F and Note 14) |
|
7,287,884 |
|
8,223,742 |
Amortization of rights of use of leased real property (Exhibit F and Note 14) |
|
2,018,680 |
|
2,033,243 |
Loss from the sale or depreciation of property and equipment (Note 14) |
|
703,761 |
|
73,425 |
Amortization of intengible assets (ExhibitG and Note 15) |
|
657,996 |
|
421,235 |
Depreciation of other assets |
|
304,902 |
|
121,237 |
|
|
|
|
|
TOTAL |
|
10,973,223 |
|
10,872,882 |
|
-64- |
|
| 38. | Other operating expenses |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Turnover tax |
|
40,862,687 |
|
33,181,788 |
Other allowances (Exhibit J) |
|
5,931,296 |
|
1,856,676 |
Initial loss of loans below market rate |
|
4,206,914 |
|
3,834,403 |
Reorganization expenses (Exhibit J) |
|
2,373,713 |
|
4,411,298 |
Contribution to the Deposit Guarantee Fund (Note 45) |
|
2,032,751 |
|
2,193,577 |
Claims |
|
1,478,605 |
|
610,158 |
Interest on liabilities from leases (Note 25) |
|
621,630 |
|
903,203 |
Loss from the sale or depreciation of investment properties and other non-financial assets |
|
12,062 |
|
75,821 |
Other operating expenses |
|
3,966,388 |
|
4,940,243 |
|
|
|
|
|
TOTAL |
|
61,486,046 |
|
52,007,167 |
| 39. | Fair values of financial instruments |
| a) | Assets and liabilities measured at fair value |
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 |
|
25,519,962 |
|
25,519,962 |
|
3,917,279 |
|
21,602,683 |
|
- |
Derivative instruments |
|
2,268,201 |
|
2,268,201 |
|
- |
|
2,268,201 |
|
- |
Other financial assets |
|
3,926,704 |
|
3,926,704 |
|
3,926,704 |
|
- |
|
- |
Other debt securities |
|
600,576,208 |
|
600,576,208 |
|
52,601,929 |
|
547,323,980 |
|
650,299 |
Financial assets pledged as collateral |
|
16,699,438 |
|
16,699,438 |
|
16,187,316 |
|
512,122 |
|
- |
Investments in equity instruments |
|
938,347 |
|
938,347 |
|
877,879 |
|
60,468 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative instruments |
|
334,340 |
|
334,340 |
|
- |
|
334,340 |
|
- |
The fair value hierarchy of assets and liabilities measured
at fair value as of December 31, 2021 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 |
|
2,721,113 |
|
2,721,113 |
|
2,719,594 |
|
1,519 |
|
- |
Derivative instruments |
|
5,486,313 |
|
5,486,313 |
|
- |
|
5,486,313 |
|
- |
Other financial assets |
|
3,710,885 |
|
3,710,885 |
|
3,710,885 |
|
- |
|
- |
Other debt securities |
|
316,392,721 |
|
316,392,721 |
|
98,430,498 |
|
215,933,998 |
|
2,028,225 |
Financial assets pledged as collateral |
|
8,988,656 |
|
8,988,656 |
|
8,988,656 |
|
- |
|
- |
Investments in equity instruments |
|
4,319,292 |
|
4,319,292 |
|
748,613 |
|
70,288 |
|
3,500,391 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative instruments |
|
612,069 |
|
612,069 |
|
- |
|
612,069 |
|
- |
The fair value of a financial asset or liability
is the price that would be received for the sale of an asset or paid for the transfer of a liability in an orderly transaction between
market participants at the measurement date.
|
-65- |
|
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: 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. |
Financial assets at fair value mainly consist of
BCRA Liquidity Bills and Argentine Government Bonds, together with a minor share in Argentine Treasury Bills and Corporate Bonds. 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.
b)
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 period versus previous year levels.
b.1) Transfers from Level 1 to Level
2
There were no transfers from Level 1 to Level 2 for instruments measured at
fair value through profit or loss or through OCI as of year-end.
b.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:
|
-66- |
|
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
|
|
|
|
|
Treasury Bond in pesos adjusted by 1.20% CER. Maturity 03-18-2022 |
|
- |
|
8,231,290 |
Treasury Bond in pesos adjusted by 1.50% CER. Maturity 03-25-2024 |
|
- |
|
24,803,535 |
Treasury Bond in pesos adjusted by 1.40% CER. Maturity 03-25-2023 |
|
- |
|
18,929,424 |
Treasury Bond in pesos adjusted by 1.30% CER. Maturity 09-20-2022 |
|
- |
|
21,055,446 |
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.
b.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.
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.
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
|
-67- |
|
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 OIS yield curve. 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
As of December 31, 2021, the fair value of the equity interest
held in Prisma Medios de Pago S.A.—classified as Level 3—was determined by the Bank’s Management according to the valuation
report prepared by an independent expert, who relied on a future discounted cash flow method embracing an income approach, net of the
valuation adjustment required by the BCRA in Memoranda No. 7/2019 and No. 8/2021 and net of the collection of dividends (Note 2.1.1.b)
and Note 12).
Corporate Bonds
Fair value measurement of the following corporate bonds
held in portfolio classified as Level 3 has been determined by the Entity’s Management 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 Arcor (ON ARCOR17)
-
ON Refi Pampa (ON REF2B)
The most relevant unobservable inputs include:
-
Latest market price
-
Projected UVA
|
-68- |
|
The tables below show a sensitivity analysis for each
of the above-mentioned securities:
Latest market price scenarios |
Changes in final price |
|
|
|
REF2B |
ARCOR17 |
|
+2% |
2.000% |
2.000% |
|
+5% |
5.000% |
5.000% |
|
+10% |
10.000% |
10.000% |
|
|
|
|
|
|
|
|
|
|
|
|
|
UVA Scenarios |
Changes in final price |
|
|
|
ON ARCOR17 |
ON REF2B |
|
+3% |
3.000% |
3.000% |
|
+5% |
5.000% |
5.000% |
|
+10% |
10.000% |
10.000% |
|
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 |
PJ3N6U001 |
BONO TDJ23 |
PL3N7V001 |
BONO TDL23 |
PF3N2H001 |
LT X17F3 |
X3JN6G001 |
LCER16J3$ |
XY3N5J001 |
LT X19Y3 |
Underlying Put
Scenarios |
Changes in final price |
Changes in Underlying Price(%) |
PJ3N6U001 |
PL3N7V001 |
PF3N2H001 |
X3JN6G001 |
XY3N5J001 |
-6.000% |
6.055% |
5.962% |
10.464% |
7.564% |
9.675% |
-4.000% |
4.037% |
3.975% |
6.976% |
5.043% |
6.450% |
-2.000% |
2.018% |
1.987% |
3.488% |
2.521% |
3.225% |
0.000% |
0.000% |
0.000% |
0.000% |
0.000% |
0.000% |
2.000% |
0.000% |
0.000% |
0.000% |
0.000% |
0.000% |
6.000% |
0.000% |
0.000% |
0.000% |
0.000% |
0.000% |
|
-69- |
|
b.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:
|
|
|
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
|
|
|
Balance at the beginning of the fiscal year |
|
|
|
5,528,616 |
|
10,041,732 |
|
|
|
|
|
|
|
|
Derivative instruments - Put option taken - Prisma Medios de Pago S.A. |
|
- |
|
(2,302,454) |
Other debt securities - Private securities - Corporate bonds |
|
(390,921) |
|
2,028,225 |
Other financial assets - Receivables from sale of ownership interest in Prisma Medios de Pago S.A. |
|
(4,412,028) |
|
- |
Loss from sale or write-off of financial assets - Prisma Medios de Pago S.A. |
|
3,741,628 |
|
- |
Dividends collected |
|
- |
|
(1,134,220) |
Monetary gain (loss) generated by assets at fair value |
|
(3,816,996) |
|
(3,104,667) |
|
|
|
|
|
|
|
|
Balance at fiscal year-end |
|
|
|
650,299 |
|
5,528,616 |
| c) | 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
variable rate, it is considered that the accounting balance is similar to the fair value.
|
-70- |
|
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 |
|
296,292,314 |
|
(1) |
|
- |
|
- |
|
- |
Repo transactions |
|
52,564,802 |
|
(1) |
|
- |
|
- |
|
- |
Other financial assets |
|
28,816,310 |
|
(1) |
|
- |
|
- |
|
- |
Loans and other financing |
|
|
|
|
|
|
|
|
|
|
Non-financial government sector |
|
1,399 |
|
(1) |
|
- |
|
- |
|
- |
BCRA |
|
9,034 |
|
(1) |
|
- |
|
- |
|
- |
Other financial institutions |
|
4,231,777 |
|
2,584,611 |
|
- |
|
- |
|
2,584,611 |
Non-financial private sector and residents abroad |
|
712,854,292 |
|
668,695,077 |
|
- |
|
- |
|
668,695,077 |
Other debt securities |
|
44,527,097 |
|
44,528,179 |
|
- |
|
44,528,179 |
|
- |
Financial assets pledged as collateral |
|
29,495,681 |
|
(1) |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Financial Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
1,313,820,228 |
|
1,288,323,903 |
|
- |
|
1,288,323,903 |
|
- |
Other financial liabilities |
|
118,432,421 |
|
(1) |
|
- |
|
- |
|
- |
Financing received from the BCRA and other financial institutions |
|
19,873,142 |
|
19,167,220 |
|
- |
|
19,167,220 |
|
- |
Corporate bonds issued |
|
191,183 |
|
189,970 |
|
- |
|
189,970 |
|
- |
| (1) | The fair value is not reported as it is considered similar to its accounting value. |
The fair value hierarchy of assets and liabilities not
measured at fair value as of December 31, 2021 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 |
|
425,320,837 |
|
(1) |
|
- |
|
- |
|
- |
Repo transactions |
|
267,934,977 |
|
(1) |
|
- |
|
- |
|
- |
Other financial assets |
|
24,876,666 |
|
(1) |
|
- |
|
- |
|
- |
Loans and other financing |
|
|
|
|
|
|
|
|
|
|
Non-financial government sector |
|
1,441 |
|
(1) |
|
- |
|
- |
|
- |
Other financial institutions |
|
8,201,090 |
|
7,144,110 |
|
- |
|
- |
|
7,144,110 |
Non-financial private sector and residents abroad |
|
730,141,116 |
|
719,689,743 |
|
- |
|
- |
|
719,689,743 |
Other debt securities |
|
43,956,008 |
|
43,019,867 |
|
- |
|
43,019,867 |
|
- |
Financial assets pledged as collateral |
|
30,517,448 |
|
(1) |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Financial Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
1,379,790,010 |
|
1,363,503,360 |
|
- |
|
1,363,503,360 |
|
- |
Other financial liabilities |
|
119,977,796 |
|
(1) |
|
- |
|
- |
|
- |
Financing received from the BCRA and other financial institutions |
|
22,903,783 |
|
22,381,777 |
|
- |
|
22,381,777 |
|
- |
Corporate bonds issued |
|
979,760 |
|
776,393 |
|
- |
|
776,393 |
|
- |
(1) The fair value is not reported as it is considered similar to its accounting
value.
Basis for segmentation
As of December 31, 2022 and 2021, 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.
|
-71- |
|
The following table shows relevant information on
loans and deposits by business line as of December 31, 2022 and 2021:
Group (banking activity) (1) |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and other financing |
|
|
|
717,096,502 |
|
738,343,647 |
Corporate banking (2) |
|
|
|
67,395,683 |
|
60,645,335 |
Small and medium companies (3) |
|
|
|
261,891,287 |
|
243,208,606 |
Retail |
|
|
|
387,809,532 |
|
434,489,706 |
|
|
|
|
|
|
|
Other assets |
|
|
|
1,241,740,354 |
|
1,268,403,687 |
TOTAL ASSETS |
|
|
|
1,958,836,856 |
|
2,006,747,334 |
|
|
|
|
|
|
|
Deposits |
|
|
|
1,313,820,228 |
|
1,379,790,010 |
Corporate banking (2)(3) |
|
|
|
284,070,714 |
|
303,344,471 |
Small and medium companies (2)(3) |
|
|
|
243,413,985 |
|
290,098,168 |
Retail |
|
|
|
786,335,529 |
|
786,347,371 |
|
|
|
|
|
|
|
Other liabilities |
|
|
|
279,132,660 |
|
310,200,461 |
TOTAL LIABILITIES |
|
|
|
1,592,952,888 |
|
1,689,990,471 |
| (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 the 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.
a) Parent
The Bank's parent is Banco Bilbao Vizcaya Argentaria.
b) 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.
|
-72- |
|
b.1) Remuneration of key management personnel
The Group's key management personnel received the following
compensations:
|
12.31.22 |
|
12.31.21 |
|
|
|
|
Fees |
90,436 |
|
105,841 |
|
|
|
|
Total |
90,436 |
|
105,841 |
b.2) Profit or loss from transactions and balances with key
management personnel
|
Balances as of |
|
Profit or loss from transactions |
|
|
|
12.31.22 |
12.31.21 |
|
12.31.22 |
12.31.21 |
|
|
|
|
|
|
Loans |
|
|
|
|
|
Overdrafts |
2 |
- |
|
16 |
- |
Credit Cards |
21,011 |
6,934 |
|
4,476 |
2,104 |
Consumer loans |
1,056 |
2,153 |
|
16,521 |
458 |
|
|
|
|
|
|
Deposits |
|
|
|
|
|
Deposits |
38,482 |
25,121 |
|
369 |
689 |
Loans are granted on an arm’s length basis.
As of December 31, 2022 and 2021, balances of loans granted are classified under normal performance according to the debtor classification
rules issued by the BCRA.
b.3) Profit or loss and balances with related parties
(except for key management personnel)
Parent |
Balances as of |
|
|
Profit or loss from transactions |
12.31.22 |
12.31.21 |
|
|
12.31.22 |
12.31.21 |
|
|
|
|
|
|
|
Cash and deposits in banks |
686,084 |
1,220,905 |
|
|
- |
- |
Financial assets pledged as collateral (2) |
56,681 |
- |
|
|
- |
- |
Other financial assets(2) |
526,899 |
1,023,511 |
|
|
- |
- |
Other financial liabilities |
- |
- |
|
|
- |
- |
Other non-financial liabilities |
26,274,291 |
41,268,916 |
|
|
13,187,626 |
7,838,054 |
Derivative instruments (Liabilities) (1) |
11,079 |
- |
|
|
22,175 |
1,165,030 |
|
|
|
|
|
|
|
Off-balance sheet balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities in custody |
184,347,603 |
176,945,998 |
|
|
- |
- |
Derivative instruments |
1,932,874 |
- |
|
|
- |
- |
Sureties granted |
2,308,001 |
2,648,230 |
|
|
9,752 |
15,172 |
Guarantees received |
2,724,690 |
2,768,006 |
|
|
- |
- |
|
|
|
|
|
|
|
(1) Profit or loss of Derivative Instruments (Assets) is exposed under Derivative Instruments (Liabilities). |
(2) These transactions do not generate profit or loss. |
|
|
-73- |
|
Subsidiarias |
Balances as of |
|
|
Profit or loss from transactions |
12.31.22 |
12.31.21 |
|
|
12.31.22 |
12.31.21 |
|
|
|
|
|
|
|
Loans and other financing |
12,742,159 |
15,328,361 |
|
|
6,093,983 |
5,623,881 |
Other financial assets |
- |
1,284 |
|
|
- |
- |
Deposits |
276,534 |
432,922 |
|
|
11,197 |
246,965 |
Other non-financial liabilities |
23 |
45 |
|
|
48 |
8,000 |
Received financing |
- |
- |
|
|
- |
- |
Other operating income |
- |
- |
|
|
21,589 |
24,018 |
|
|
|
|
|
|
|
Off-balance sheet balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities in custody |
3,926,704 |
3,710,885 |
|
|
- |
- |
Sureties granted |
- |
547 |
|
|
- |
- |
Associates |
Balances as of |
|
|
Profit or loss from transactions |
12.31.22 |
12.31.21 |
|
|
12.31.22 |
12.31.21 |
|
|
|
|
|
|
|
Cash and deposits in banks |
595 |
1,270 |
|
|
- |
- |
Loans and other financing |
1,851,295 |
2,123,921 |
|
|
2,884,201 |
2,170,057 |
Debt securities at fair value through profit or loss |
- |
1,519 |
|
|
- |
3,387 |
Derivative instruments (Assets) |
29,780 |
- |
|
|
102,385 |
- |
Other financial assets |
427,700 |
395,935 |
|
|
- |
- |
Deposits |
1,378,875 |
1,611,431 |
|
|
288,371 |
29,366 |
Other non-financial liabilities |
- |
842 |
|
|
|
- |
Received financing |
160,526 |
- |
|
|
66,931 |
- |
Commission income |
- |
- |
|
|
265 |
- |
Commission expense |
- |
- |
|
|
158,251 |
- |
Other operating income |
- |
- |
|
|
98,676 |
113,753 |
|
|
|
|
|
|
|
Off-balance sheet balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
1,500,000 |
- |
|
|
- |
- |
Securities in custody |
4,138,991 |
3,968,905 |
|
|
- |
- |
Guarantees received |
721,229 |
1,973,933 |
|
|
- |
- |
Créditos Documentarios |
136,814 |
- |
|
|
- |
- |
Transactions have been agreed upon on an arm’s
length basis. As of December 31, 2022 and 2021, 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
|
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|
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.
|
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|
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, which provides the Entity with a comprehensive framework 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
|
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|
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 its credit risk 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, the Risks Management Department, together
with the rest of the Bank’s Management Departments, annually develops a budget process, which includes the main variables of credit
risk:
| - | Expected growth per portfolio
and product. |
| - | Evolution of default
ratio. |
| - | Evolution of write-off
portfolios. |
This way, the expected standard credit risk values
are set for a term of one year. Afterwards, the real values obtained are compared with that budget, to assess the growth of the portfolio
and its quality.
Also, maximum limits or exposures per economic activity
are formalized, pursuant to the Group’s placement strategy, which are used to follow up credit portfolios. In case of deviations
from the set limits, these are analyzed by the Risks Follow-Up Committees to take the necessary measures.
Admission
BBVA Argentina has credit risk admission policies
in place, to define the criteria to obtain quality assets, establish risk tolerance levels and alignment of the credit activities with
the strategy of BBVA Argentina.
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:
|
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|
| - | 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, both regarding the
Bank and its subsidiaries, as well as to provide the results directly through collections of write-off portfolios and indirectly through
collections of active portfolios, which imply a reduction of 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.
|
-78- |
|
Additional information on the credit quality of
assets
Exposure to credit risk
The Group’s credit risk exposure of loans and
overdrafts under IFRS 9 with allocation by stage according to the classification of assets as of December 31, 2022 and 2021 is as follows:
Exposure to credit risk |
December 31, 2022 |
Stage 1 |
Stage 2 |
Stage 3 |
|
|
|
|
|
Financial assets at amortized cost |
782,000,404 |
703,735,541 |
65,684,071 |
12,580,792 |
|
|
|
|
|
Wholesale |
375,337,289 |
356,207,577 |
17,077,970 |
2,051,742 |
Company banking |
212,527,117 |
201,084,527 |
9,820,238 |
1,622,352 |
Corporate and investment banking |
113,352,634 |
107,308,156 |
6,044,465 |
13 |
Local and International |
60,333 |
2,803 |
56,951 |
579 |
SMEs |
49,397,205 |
47,812,091 |
1,156,316 |
428,798 |
|
|
|
|
|
Retail |
406,663,115 |
347,527,964 |
48,606,101 |
10,529,050 |
Overdrafts |
1,077,336 |
589,908 |
317,253 |
170,175 |
Credit cards |
264,209,008 |
227,101,438 |
32,947,828 |
4,159,742 |
Consumer loans |
70,941,377 |
62,527,232 |
4,400,529 |
4,013,616 |
Pledge loans |
27,158,478 |
25,608,568 |
738,283 |
811,627 |
Mortgage loans |
42,381,694 |
30,819,975 |
10,188,965 |
1,372,754 |
Finance leases |
863,298 |
848,954 |
13,208 |
1,136 |
Other |
31,924 |
31,889 |
35 |
- |
|
|
|
|
|
Financial assets at fair value through OCI |
3,722,935 |
3,722,935 |
- |
- |
|
|
|
|
|
Debt securities |
3,722,935 |
3,722,935 |
- |
- |
|
|
|
|
|
Total financial assets |
785,723,339 |
707,458,476 |
65,684,071 |
12,580,792 |
|
|
|
|
|
|
|
|
|
|
Loan commitments and financial guarantees |
213,378,338 |
194,902,377 |
18,408,859 |
67,102 |
|
|
|
|
|
Wholesale |
39,880,931 |
35,314,905 |
4,554,978 |
11,048 |
Company banking |
14,963,752 |
12,225,728 |
2,734,023 |
4,001 |
Corporate and investment banking |
17,460,813 |
16,646,205 |
814,608 |
- |
Local and international |
3,682,576 |
2,937,612 |
744,964 |
- |
SMEs |
3,773,790 |
3,505,360 |
261,383 |
7,047 |
|
|
|
|
|
Retail |
173,497,407 |
159,587,472 |
13,853,881 |
56,054 |
Overdrafts |
9,790,301 |
9,371,002 |
417,935 |
1,364 |
- Credit cards |
162,959,369 |
149,659,487 |
13,259,575 |
40,307 |
Mortgage loans |
677,186 |
490,752 |
172,051 |
14,383 |
Other |
70,551 |
66,231 |
4,320 |
- |
|
|
|
|
|
Total loan commitments and financial guarantees |
213,378,338 |
194,902,377 |
18,408,859 |
67,102 |
|
|
|
|
|
|
|
|
|
|
Total exposure to credit risk |
999,101,677 |
902,360,853 |
84,092,930 |
12,647,894 |
|
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|
Exposure to credit risk |
December 31, 2021 |
Stage 1 |
Stage 2 |
Stage 3 |
|
|
|
|
|
Financial assets at amortized cost |
806,379,229 |
700,378,342 |
87,260,364 |
18,740,523 |
|
|
|
|
|
Wholesale |
377,735,166 |
339,329,001 |
30,875,648 |
7,530,517 |
Company banking |
221,496,818 |
200,571,111 |
16,999,742 |
3,925,965 |
Corporate and investment banking |
129,255,187 |
113,573,038 |
12,311,878 |
3,370,271 |
Local and International |
2,662 |
1,938 |
56 |
668 |
SMEs |
26,980,499 |
25,182,914 |
1,563,972 |
233,613 |
|
|
|
|
|
Retail |
428,644,063 |
361,049,341 |
56,384,716 |
11,210,006 |
Overdrafts |
1,219,920 |
802,622 |
229,340 |
187,958 |
Credit cards |
294,222,505 |
259,546,715 |
30,109,988 |
4,565,802 |
Consumer loans |
78,598,056 |
61,477,071 |
11,810,633 |
5,310,352 |
Pledge loans |
4,792,468 |
4,422,409 |
226,833 |
143,226 |
Mortgage loans |
49,793,250 |
34,783,933 |
14,007,771 |
1,001,546 |
Finance leases |
5,520 |
5,368 |
152 |
- |
Other |
12,344 |
11,223 |
(1) |
1,122 |
|
|
|
|
|
Financial assets at fair value through OCI |
2,648,245 |
2,648,245 |
- |
- |
|
|
|
|
|
Debt securities |
2,648,245 |
2,648,245 |
- |
- |
|
|
|
|
|
Total financial assets |
809,027,474 |
703,026,587 |
87,260,364 |
18,740,523 |
|
|
|
|
|
|
|
|
|
|
Loan commitments and financial guarantees |
173,409,863 |
160,736,612 |
12,597,776 |
75,475 |
|
|
|
|
|
Wholesale |
32,989,033 |
28,361,126 |
4,610,616 |
17,291 |
Company banking |
15,204,639 |
13,010,027 |
2,184,410 |
10,202 |
Corporate and investment banking |
10,551,603 |
9,435,127 |
1,116,476 |
- |
Local and international |
4,165,682 |
3,294,538 |
871,144 |
- |
SMEs |
3,067,109 |
2,621,434 |
438,586 |
7,089 |
|
|
|
|
|
Retail |
140,420,830 |
132,375,486 |
7,987,160 |
58,184 |
Overdrafts |
13,781,897 |
13,379,892 |
401,687 |
318 |
- Credit cards |
125,774,817 |
118,383,977 |
7,333,974 |
56,866 |
Mortgage loans |
802,068 |
550,949 |
250,118 |
1,001 |
Other |
62,048 |
60,668 |
1,381 |
(1) |
|
|
|
|
|
Total loan commitments and financial guarantees |
173,409,863 |
160,736,612 |
12,597,776 |
75,475 |
|
|
|
|
|
|
|
|
|
|
Total exposure to credit risk |
982,437,337 |
863,763,199 |
99,858,140 |
18,815,998 |
|
-80- |
|
Information on the credit quality of assets
The Group’s credit quality analysis of loans
and overdrafts under IFRS 9 with allocation of risk as of December 31, 2022 and 2021 is as follows:
Credit quality |
December 31, 2022 |
December31, 2021 |
|
|
|
Wholesale |
|
|
Low risk |
360,311,621 |
315,312,837 |
Medium risk |
36,221,799 |
80,905,270 |
High risk |
16,622,010 |
6,958,284 |
Non performing |
2,062,790 |
7,547,808 |
Total wholesale |
415,218,220 |
410,724,199 |
|
|
|
Retail |
|
|
Low risk |
443,083,290 |
426,787,891 |
Medium risk |
120,527,862 |
128,469,314 |
High risk |
5,964,266 |
2,539,498 |
Non-performing |
10,585,104 |
11,268,190 |
Total retail |
580,160,522 |
569,064,893 |
|
|
|
Debt securities |
|
|
Corporate bonds (B) |
3,722,935 |
1,775,426 |
Corporate bonds (CCC+) |
- |
872,819 |
Total debt securities |
3,722,935 |
2,648,245 |
|
|
|
Total exposure to credit risk |
999,101,677 |
982,437,337 |
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.
|
-81- |
|
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, 2022 and 2021, 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
|
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|
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 has tools (“scoring” and “rating”)
that enable it to rank the credit quality of its transactions and customers based on an assessment and its correspondence with the probability
of default (“PD”) scales. To analyze the performance of PD, the Group has a series of tracking tools and historical databases
that collect the relevant internally generated information. These tools can be grouped together into scoring and rating models, being
the main difference between ratings and scorings is that the latter are used to assess retail products, while ratings use a wholesale
banking customer approach.
These different levels and their PD were calculated
by using as a reference the rating scales and default rates. These calculations establish the PD levels for the Bank’s Master Rating
Scale. Although this scale is common to the entire Group, the calibrations (mapping scores to PD sections/Master Rating Scale levels)
are carried out at the country level.
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.
|
-83- |
|
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). |
|
-84- |
|
| - | Derivatives (Exchange
rate Futures and Forwards). |
The following tables show changes in total VaR and
VaR per risk factors.
VaR (in millions of pesos)
|
12.31.22 |
12.31.21 |
Average |
141.13 |
222.66 |
Minimum |
48.71 |
37.04 |
Maximum |
263.07 |
504.43 |
Closing |
112.22 |
88.76 |
VaR per risk factors – (in millions of pesos)
VaR Interest rate |
12.31.22 |
12.31.21 |
Average |
157.79 |
211.15 |
Minimum |
49.32 |
5.75 |
Maximum |
298.07 |
503.39 |
Closing |
121.29 |
90.95 |
|
|
|
VaR Exchange rate |
12.31.22 |
12.31.21 |
Average |
1.05 |
43.11 |
Minimum |
-0.47 |
0.99 |
Maximum |
65.11 |
157.89 |
Closing |
0.15 |
1.29 |
Currency risk
The position in foreign currency is shown below:
|
-85- |
|
ACCOUNTS |
|
TOTAL |
AS OF 12.31.22 (per currency) |
|
TOTAL |
|
|
|
|
AS OF |
|
|
|
|
|
AS OF |
ASSETS |
|
12.31.22 |
Dollar |
Euro |
Real |
Other |
|
12.31.21 |
|
|
|
|
|
|
|
|
|
|
|
Cash and deposit in banks |
|
248,413,103 |
241,650,711 |
6,289,801 |
34,874 |
437,717 |
|
291,823,571 |
Debt securities at fair value through profit or loss |
|
3,520,000 |
3,520,000 |
- |
- |
- |
|
- |
Other financial assets |
|
8,459,243 |
8,454,673 |
4,570 |
- |
- |
|
5,626,453 |
Loans and other financing |
|
38,533,754 |
38,396,582 |
137,172 |
- |
- |
|
37,076,763 |
Non-financial government sector |
|
47 |
47 |
- |
- |
- |
|
25 |
Other financial institutions |
|
651 |
651 |
- |
- |
- |
|
327,917 |
Non-financial private sector and residents abroad |
|
38,533,056 |
38,395,884 |
137,172 |
- |
- |
|
36,748,821 |
Other debt securities |
|
|
5,466,376 |
5,466,376 |
- |
- |
- |
|
4,185,662 |
Financial assets pledged as collateral |
|
10,771,263 |
10,771,263 |
- |
- |
- |
|
10,955,980 |
Investments in equity instruments |
|
60,251 |
60,251 |
- |
- |
- |
|
69,822 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
315,223,990 |
308,319,856 |
6,431,543 |
34,874 |
437,717 |
|
349,738,251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCOUNTS |
|
TOTAL |
AS OF 12.31.22 (per currency) |
|
TOTAL |
|
|
|
|
AS OF |
|
|
|
|
|
AS OF |
LIABILITIES |
|
12.31.22 |
Dollar |
Euro |
Real |
Other |
|
12.31.21 |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
286,006,802 |
281,212,547 |
4,794,255 |
- |
- |
|
323,807,648 |
Non-financial government sector |
|
6,429,453 |
6,401,954 |
27,499 |
- |
- |
|
6,257,327 |
Financial sector |
|
|
86,240 |
84,772 |
1,468 |
- |
- |
|
68,008 |
Non-financial private sector and residents abroad |
|
279,491,109 |
274,725,821 |
4,765,288 |
- |
- |
|
317,482,313 |
Other financial liabilities |
|
21,896,248 |
20,919,414 |
855,481 |
- |
121,353 |
|
20,014,128 |
Financing received from the BCRA and other financial institutions |
1,109,729 |
1,023,014 |
86,715 |
- |
- |
|
991,012 |
Other non-financial liabilities |
|
11,786,828 |
6,227,565 |
5,559,263 |
- |
- |
|
8,421,778 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
320,799,607 |
309,382,540 |
11,295,714 |
- |
121,353 |
|
353,234,566 |
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.
|
-86- |
|
The following table shows the sensitivity of the
economic value (SEV), to +100 basis points variation presented as a proportion of Core Capital:
SEV +100 bps
|
12.31.22 |
12.31.21 |
Year-end |
0.62% |
0.95% |
Minimum |
0.62% |
0.54% |
Maximum |
1.42 % |
1.34% |
Average |
1.00% |
0.81% |
The following table shows the sensitivity of the
financial margin (SFM), to -100 basis points variation presented as a percentage of 12-month forecast net interest income:
SFM -100 bps
|
12.31.22 |
12.31.21 |
Year-end |
0.47% |
0.97% |
Minimum |
0.43% |
0.72% |
Maximum |
1.01% |
1.22% |
Average |
0.75% |
0.95% |
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.
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.
|
-87- |
|
Changes in LCR ratios are summarized below:
|
12.31.22 |
12.31.21 |
LCR |
348% |
320% |
Concentration of deposits as of December 31, 2022
and 2021 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, 2022
and 2021:
|
|
Assets - Exhibit D (*) |
|
Liabilities - Exhibit I (*) |
|
|
12.31.22 |
|
12.31.21 |
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
|
|
|
|
Up to 1 month |
|
371,517,021 |
|
365,856,606 |
|
1,260,157,221 |
|
1,364,434,848 |
From 1 month to 3 months |
|
121,434,474 |
|
111,445,237 |
|
107,111,751 |
|
69,831,480 |
From 3 months to 6 months |
|
91,326,749 |
|
91,197,252 |
|
110,068,684 |
|
110,144,027 |
From 6 months to 12 months |
|
75,946,906 |
|
91,402,986 |
|
4,300,628 |
|
5,806,892 |
From 12 months to 24 months |
|
80,308,421 |
|
75,726,097 |
|
3,336,028 |
|
6,510,574 |
More than 24 months |
|
139,087,706 |
|
125,988,194 |
|
5,046,027 |
|
7,152,402 |
TOTAL |
|
879,621,277 |
|
861,616,372 |
|
1,490,020,339 |
|
1,563,880,223 |
(*) 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.
|
-88- |
|
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, 2022 and 2021:
|
|
|
12/31/2022 |
|
12/31/2021 |
|
|
|
|
|
|
Up to 1 month |
|
|
837,387,924 |
|
571,695,645 |
From 1 month to 3 months |
|
6,440,802 |
|
2,686,685 |
From 3 months to 6 months |
|
4,724,639 |
|
1,100,387 |
From 6 months to 12 months |
|
2,443,748 |
|
1,063,368 |
From 12 months to 24 months |
|
506,280 |
|
265,392 |
More than 24 months |
|
914,400 |
|
1,231,833 |
|
|
|
852,417,793 |
|
578,043,310 |
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 |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
|
|
|
|
|
|
|
Other financial assets |
|
|
3,476,008 |
|
6,670,714 |
Loans and other financing |
|
|
219,396,127 |
|
201,714,290 |
Other debt securities |
|
|
1,683,443,548 |
|
48,990,253 |
Financial assets pledged as collateral |
|
|
4,100,699 |
|
8,721,985 |
|
|
|
|
|
|
Total |
|
|
1,910,416,382 |
|
266,097,242 |
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
77,673 |
|
49,113 |
Other financial liabilities |
|
|
5,915,713 |
|
8,398,830 |
Financing received from the BCRA and other financial institutions |
|
|
2,388,669 |
|
5,019,080 |
Corporate bonds issued |
|
|
- |
|
195,952 |
|
|
|
|
|
|
Total |
|
|
8,382,055 |
|
13,662,975 |
Measurement of expected credit loss
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
|
-89- |
|
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,
corporates or public administrations. |
| - | The payment amounts on
the principal and interest on the outstanding loans. |
The Group approximates these variables by using
a proxy indicator from the set included of the macroeconomic scenarios provided by the economic research department.
Only a single specific indicator can be used for
each of the two variables and only key macroeconomic indicators should be chosen as the first option: a) the use of Real GDP Growth can
be perceived as the only sufficient "factor" necessary to capture the influence of the entire macroeconomic scenario possibly
relevant to internal PD; or b) the use of the most representative short-term interest rate or the exchange rate expressed in real terms.
Real GDP growth is preferred 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
macroeconomic scenario generation.
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.
|
-90- |
|
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.
COVID-19 Impact
During the pandemic-related lockdown, the BCRA
and the government issued several communications and decrees, pursuant to which customers within the portfolio of non-related-card financings
benefitted from the deferral of unpaid installments from April 2020 up to the final loan maturity. The measure was lifted in March 2021,
thus deferrals are no longer applied.
The table below summarizes the loan portfolio affected
by the aforementioned measures and the related impact on contractual cash flows:
|
|
|
|
Loss from changes in contractual cash flows |
Affected portfolio |
|
Balance as of |
|
Balance as of |
|
Variation |
|
Inflationary |
|
Balance as of |
|
|
12.31.2022 |
|
12.31.2021 |
|
|
effect |
|
12.31.2022 |
|
|
|
|
|
|
|
|
|
|
|
UVA- indexed Mortgage Loans |
|
48,715,323 |
|
1,418,789 |
|
973,932 |
|
(916,243) |
|
1,476,478 |
|
|
|
|
|
|
|
|
|
|
|
UVA-indexed Pledge Loans |
|
996,002 |
|
23,666 |
|
18,067 |
|
(15,694) |
|
26,039 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,442,455 |
|
991,999 |
|
(931,937) |
|
1,502,517 |
The parameters of the ECL measurement model were
not affected. Credit quality ratios did not show impairment as a consequence of the aid measures promoted by the national authorities.
Given the pandemic and lockdown scenario, there were no relevant impacts on ECL directly related to Covid-19.
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:
|
-91- |
|
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.
|
-92- |
|
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, 2022 and 2021:
Allowances - Credit Investment |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.21 |
703,026,587 |
77,371,447 |
9,888,917 |
12,835,805 |
5,904,718 |
|
809,027,474 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(151,303,035) |
154,848,316 |
848 |
- |
- |
|
3,546,129 |
From stage 2 to stage 1 |
116,216,684 |
(110,975,519) |
(134,290) |
- |
- |
|
5,106,875 |
From stage 1 or 2 to stage 3 |
(3,001,415) |
(17,006,213) |
(583,205) |
19,907,890 |
596,955 |
|
(85,988) |
From stage 3 to stage 1 or 2 |
671,480 |
1,548,859 |
304,202 |
(3,029,020) |
(324,949) |
|
(829,428) |
Changes without inter-stage transfers |
60,124,452 |
5,226,052 |
(4,334,618) |
(1,914,438) |
213,142 |
|
59,314,590 |
Newly originated financial assets |
1,083,392,548 |
15,210,613 |
15,514,068 |
2,595,079 |
166,412 |
|
1,116,878,720 |
Reimbursements |
(620,498,995) |
(24,312,285) |
(12,801,962) |
(3,456,523) |
(287,046) |
|
(661,356,811) |
Write-offs |
(65,289,452) |
(37,805) |
- |
(9,023,549) |
(3,680,829) |
|
(78,031,635) |
Foreign exchange differences |
19,405,089 |
2,079,689 |
1,467,659 |
3,309 |
490,541 |
|
23,446,287 |
Inflation adjustment |
(435,285,467) |
(42,696,770) |
(4,893,932) |
(6,888,932) |
(1,527,773) |
|
(491,292,874) |
|
|
|
|
|
|
|
|
Balances as of 12.31.22 |
707,458,476 |
61,256,384 |
4,427,687 |
11,029,621 |
1,551,171 |
|
785,723,339 |
|
|
|
|
|
|
|
|
Allowances - Credit Investment |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.20 |
682,918,407 |
102,799,078 |
12,500,689 |
8,040,847 |
7,343,832 |
|
813,602,853 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(200,768,355) |
201,068,588 |
- |
- |
- |
|
300,233 |
From stage 2 to stage 1 |
153,512,848 |
(145,608,117) |
(5,286,227) |
- |
- |
|
2,618,504 |
From stage 1 or 2 to stage 3 |
(2,886,296) |
(25,478,073) |
(438,703) |
28,486,638 |
447,409 |
|
130,975 |
From stage 3 to stage 1 or 2 |
425,177 |
1,096,035 |
24,887 |
(3,944,693) |
(299,173) |
|
(2,697,767) |
Changes without inter-stage transfers |
40,750,415 |
(15,301,106) |
11,420,881 |
(2,391,849) |
758,406 |
|
35,236,747 |
Newly originated financial assets |
736,123,639 |
23,747,609 |
7,917,200 |
1,204,638 |
1,260,284 |
|
770,253,370 |
Reimbursements |
(465,375,191) |
(33,841,329) |
(12,674,671) |
(3,110,184) |
(1,270,635) |
|
(516,272,010) |
Write-offs |
2 |
534 |
- |
(10,281,400) |
(117,246) |
|
(10,398,110) |
Foreign exchange differences |
8,782,029 |
4,558,975 |
1,520,226 |
3,243 |
394,199 |
|
15,258,672 |
Inflation adjustment |
(250,456,088) |
(35,670,747) |
(5,095,365) |
(5,171,435) |
(2,612,358) |
|
(299,005,993) |
|
|
|
|
|
|
|
|
Balances as of 12.31.21 |
703,026,587 |
77,371,447 |
9,888,917 |
12,835,805 |
5,904,718 |
|
809,027,474 |
|
-93- |
|
Allowances - Contingent |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.21 |
160,736,612 |
12,408,071 |
189,705 |
75,399 |
76 |
|
173,409,863 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(40,201,731) |
37,998,034 |
- |
- |
- |
|
(2,203,697) |
From stage 2 to stage 1 |
30,575,846 |
(26,014,532) |
(314) |
- |
- |
|
4,561,000 |
From stage 1 or 2 to stage 3 |
(233,694) |
(158,718) |
(1,596) |
188,881 |
3,056 |
|
(202,071) |
From stage 3 to stage 1 or 2 |
65,747 |
50,220 |
237 |
(131,646) |
(7,107) |
|
(22,549) |
Changes without inter-stage transfers |
89,549,938 |
3,946,025 |
(27,021) |
10,312 |
6,035 |
|
93,485,289 |
Newly originated financial assets |
111,344,215 |
4,702,307 |
12,276 |
24,162 |
- |
|
116,082,960 |
Reimbursements |
(58,819,804) |
(5,520,080) |
(48,435) |
(56,659) |
- |
|
(64,444,978) |
Write-offs |
- |
- |
- |
(120) |
- |
|
(120) |
Foreign exchange differences |
9,370,331 |
482,435 |
- |
- |
- |
|
9,852,766 |
Inflation adjustment |
(107,485,083) |
(9,546,505) |
(63,250) |
(43,384) |
(1,903) |
|
(117,140,125) |
|
|
|
|
|
|
|
|
Balances as of 12.31.22 |
194,902,377 |
18,347,257 |
61,602 |
66,945 |
157 |
|
213,378,338 |
|
|
|
|
|
|
|
|
Allowances - Contingent |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.20 |
169,423,558 |
14,094,794 |
300,114 |
24,869 |
1,453 |
|
183,844,788 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(33,218,798) |
29,113,031 |
- |
- |
- |
|
(4,105,767) |
From stage 2 to stage 1 |
32,338,986 |
(29,054,139) |
(287,351) |
- |
- |
|
2,997,496 |
From stage 1 or 2 to stage 3 |
(209,292) |
(197,109) |
(1,860) |
283,307 |
- |
|
(124,954) |
From stage 3 to stage 1 or 2 |
87,526 |
94,915 |
- |
(169,462) |
- |
|
12,979 |
Changes without inter-stage transfers |
18,915,074 |
5,354,194 |
564,881 |
(7,519) |
(1,099) |
|
24,825,531 |
Newly originated financial assets |
182,751,355 |
3,483,767 |
298,834 |
25,232 |
- |
|
186,559,188 |
Reimbursements |
(149,716,767) |
(5,055,286) |
(536,092) |
(57,596) |
- |
|
(155,365,741) |
Write-offs |
- |
- |
- |
(275) |
- |
|
(275) |
Foreign exchange differences |
2,508,711 |
219,286 |
68,417 |
- |
- |
|
2,796,414 |
Inflation adjustment |
(62,143,741) |
(5,645,382) |
(217,238) |
(23,157) |
(278) |
|
(68,029,796) |
|
|
|
|
|
|
|
|
Balances as of 12.31.21 |
160,736,612 |
12,408,071 |
189,705 |
75,399 |
76 |
|
173,409,863 |
Allowances - Credit Investment |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.21 |
5,830,665 |
4,793,274 |
1,170,705 |
9,971,759 |
5,419,327 |
|
27,185,730 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(3,185,129) |
12,661,601 |
92 |
- |
- |
|
9,476,564 |
From stage 2 to stage 1 |
1,464,053 |
(6,344,709) |
(10,025) |
- |
- |
|
(4,890,681) |
From stage 1 or 2 to stage 3 |
(180,031) |
(4,798,999) |
(160,356) |
10,860,174 |
168,872 |
|
5,889,660 |
From stage 3 to stage 1 or 2 |
35,126 |
162,508 |
131,738 |
(2,123,740) |
(131,816) |
|
(1,926,184) |
Changes without inter-stage transfers |
1,600,571 |
2,272,420 |
(866,471) |
4,612,170 |
248,183 |
|
7,866,873 |
Newly originated financial assets |
11,844,438 |
696,552 |
876,569 |
1,513,471 |
105,952 |
|
15,036,982 |
Reimbursements |
(8,402,459) |
(1,003,498) |
(773,928) |
(2,394,736) |
(146,605) |
|
(12,721,226) |
Write-offs |
(125,262) |
(1,780) |
- |
(8,036,132) |
(3,643,858) |
|
(11,807,032) |
Foreign exchange differences |
191,484 |
46,412 |
57,407 |
1,894 |
353,891 |
|
651,088 |
Inflation adjustment |
(3,638,371) |
(2,821,275) |
(305,511) |
(5,356,853) |
(1,255,919) |
|
(13,377,929) |
|
|
|
|
|
|
|
|
Balances as of 12.31.22 |
5,435,085 |
5,662,506 |
120,220 |
9,048,007 |
1,118,027 |
|
21,383,845 |
|
|
|
|
|
|
|
|
Allowances - Credit Investment |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.20 |
15,230,926 |
10,784,262 |
1,177,998 |
6,642,628 |
4,581,501 |
|
38,417,315 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(7,446,181) |
22,292,025 |
- |
- |
- |
|
14,845,844 |
From stage 2 to stage 1 |
4,048,188 |
(14,442,981) |
(508,955) |
- |
- |
|
(10,903,748) |
From stage 1 or 2 to stage 3 |
(259,320) |
(8,150,940) |
(71,904) |
17,493,104 |
111,365 |
|
9,122,305 |
From stage 3 to stage 1 or 2 |
34,089 |
142,450 |
15,848 |
(2,625,075) |
(153,131) |
|
(2,585,819) |
Changes without inter-stage transfers |
(9,968,443) |
(3,464,060) |
1,150,592 |
3,016,744 |
2,589,609 |
|
(6,675,558) |
Newly originated financial assets |
23,918,740 |
4,758,920 |
794,838 |
852,872 |
677,017 |
|
31,002,387 |
Reimbursements |
(15,648,030) |
(3,739,180) |
(1,037,751) |
(2,241,897) |
(731,505) |
|
(23,398,363) |
Write-offs |
- |
(8) |
- |
(8,676,418) |
(100,503) |
|
(8,776,929) |
Foreign exchange differences |
251,963 |
240,912 |
120,306 |
1,722 |
234,652 |
|
849,555 |
Inflation adjustment |
(4,331,267) |
(3,628,126) |
(470,267) |
(4,491,921) |
(1,789,678) |
|
(14,711,259) |
|
|
|
|
|
|
|
|
Balances as of 12.31.21 |
5,830,665 |
4,793,274 |
1,170,705 |
9,971,759 |
5,419,327 |
|
27,185,730 |
|
-94- |
|
Allowances - Contingent |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.21 |
1,030,995 |
522,532 |
61,915 |
47,415 |
- |
|
1,662,857 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(392,221) |
1,700,323 |
- |
- |
- |
|
1,308,102 |
From stage 2 to stage 1 |
276,160 |
(1,097,184) |
(268) |
- |
- |
|
(821,292) |
From stage 1 or 2 to stage 3 |
(10,831) |
(26,366) |
(2,437) |
102,977 |
7,301 |
|
70,644 |
From stage 3 to stage 1 or 2 |
13,288 |
6,470 |
748 |
(95,114) |
(17,851) |
|
(92,459) |
Changes without inter-stage transfers |
316,014 |
146,048 |
(32,171) |
42,161 |
12,613 |
|
484,665 |
Newly originated financial assets |
1,479,405 |
97,439 |
2,474 |
14,504 |
- |
|
1,593,822 |
Reimbursements |
(387,944) |
(142,946) |
(16,288) |
(32,937) |
- |
|
(580,115) |
Write-offs |
- |
- |
- |
(104) |
- |
|
(104) |
Foreign exchange differences |
79,312 |
2,238 |
- |
- |
- |
|
81,550 |
Inflation adjustment |
(646,673) |
(326,061) |
(9,671) |
(29,108) |
(1,959) |
|
(1,013,472) |
|
|
|
|
|
|
|
|
Balances as of 12.31.22 |
1,757,505 |
882,493 |
4,302 |
49,794 |
104 |
|
2,694,198 |
|
|
|
|
|
|
|
|
Allowances - Contingent |
Stage 1 |
Stage 2 |
Stage 3 |
|
Total |
|
Collective |
Individual |
Collective |
Individual |
|
Balances as of 12.31.20 |
2,881,944 |
1,057,407 |
47,368 |
21,692 |
3,820 |
|
4,012,231 |
|
|
|
|
|
|
|
|
Inter-stage Transfers: |
|
|
|
|
|
|
|
From stage 1 to stage 2 |
(768,373) |
2,334,030 |
- |
- |
- |
|
1,565,657 |
From stage 2 to stage 1 |
582,800 |
(2,068,077) |
(48,901) |
- |
- |
|
(1,534,178) |
From stage 1 or 2 to stage 3 |
(6,064) |
(36,999) |
(35) |
194,172 |
17,074 |
|
168,148 |
From stage 3 to stage 1 or 2 |
2,291 |
5,967 |
- |
(126,855) |
- |
|
(118,597) |
Changes without inter-stage transfers |
(2,187,527) |
(308,095) |
75,189 |
(2,558) |
(20,454) |
|
(2,443,445) |
Newly originated financial assets |
4,664,340 |
194,795 |
45,556 |
16,887 |
- |
|
4,921,578 |
Reimbursements |
(3,247,528) |
(270,671) |
(38,988) |
(38,427) |
- |
|
(3,595,614) |
Write-offs |
- |
- |
- |
(243) |
- |
|
(243) |
Foreign exchange differences |
58,163 |
10,963 |
5,351 |
- |
- |
|
74,477 |
Inflation adjustment |
(949,051) |
(396,788) |
(23,625) |
(17,253) |
(440) |
|
(1,387,157) |
|
|
|
|
|
|
|
|
Balances as of 12.31.21 |
1,030,995 |
522,532 |
61,915 |
47,415 |
- |
|
1,662,857 |
| 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 unappropriated 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
11,765,158 of Unappropriated retained earnings to increase the balance of such reserve. |
| b) | The mechanism to be followed by financial institutions 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 profits 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, 2022 amounts to 23,746,135.
Besides, the Entity shall verify that, once the proposed
distribution of earnings is made, a capital conservation margin equivalent to 2.5% of the risk-weighted assets is kept, which is additional
to the
|
-95- |
|
minimum capital requirement set forth by law,
and shall be paid in with level 1 ordinary capital (COn1), net of deductible concepts (CDC0n1).
Furthermore, in accordance with Communication “A”
7312 of the BCRA, the distribution of earnings is suspended until December 31, 2021. In accordance with the provisions of Communication
“A” 7421 of the BCRA, effective from January 1 to December 31, 2022, financial institutions may distribute earnings for up
to 20% of the amount that would have corresponded to them. As from January 1, 2022, those financial institutions that have obtained the
authorization of the BCRA must distribute earnings in 12 equal, monthly and consecutive installments.
On December 15, 2022, the BCRA issued Communication
“A” 7659 which provided for the suspension of the distribution of profits of financial institutions effective January 1 through
December 31, 2023.
| 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 (9,007,273 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
(36,696,156 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.
On April 20, 2021, the General Ordinary and Extraordinary
Shareholders’ Meeting was held and the following was approved:
| - | To absorb the amount of 29,431,352 (86,535,239
in restated values) of the Optional Reserve for future distribution of earnings to apply it to the negative balance of Unappropriated
Retained Earnings as of December 31, 2020. |
| - | To approve the partial reversal of the Optional
Reserve for future distribution of earnings in order to allocate the amount of 7,000,000 (17,507,119 in restated values) 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
(13,147,752 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.
|
-96- |
|
On April 29, 2022, the General Ordinary and Extraordinary
Shareholders’ Meeting was held and the following was approved:
| – | To allocate 3,934,134 (7,663,421 in restated
values) out of Unappropriated retained earnings for fiscal year 2021 to the Legal Reserve. |
| – | To allocate 15,736,535 (30,653,683 in restated
values) out of 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 applied for to
the BCRA for the distribution of 13,165,209. |
On June 7, 2022, the BCRA approved the distribution of
13,165,209 on account of dividends, which were made available to the shareholders.
As of December 31, 2022, the balance of 14,834,791 under
Other non-financial liabilities corresponds to the remaining dividends payable, which were approved at the shareholders’ meetings
held in 2020 and 2021.
As of December 31, 2022 and 2021, 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 enterprises granted by the Inter-American
Development Bank (IDB). |
|
12.31.22 |
12.31.21 |
|
|
|
Argentine Treasury Bond adjusted by CER. Maturity 2023 |
- |
45,977 |
Argentine Treasury Bond adjusted by CER. Maturity 2024 |
41,310 |
216,220 |
|
|
|
Total |
41,310 |
262,197 |
| 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 46,195,119 and 39,506,104
as of December 31, 2022 and 2021, 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,
|
-97- |
|
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 1,500 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 addition, by means of Communication “A”
7661 dated December 22, 2022, the BCRA resolved that as from January 1, 2023, the coverage shall be up to 6,000.
In August 1995, that company was incorporated, and
the Entity has an 8.6000% share of the corporate stock as of December 31, 2021 (BCRA Communication “B” 12305).
As of December 31, 2022 and 2021, the contributions
to the Fund have been recorded in the item “Other operating expenses - Contributions to the deposits guarantee fund” in the
amounts of 2,032,751 and 2,193,577, 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:
Items |
|
12.31.2022 |
|
12.31.2021 |
|
|
|
|
|
|
|
|
|
|
Balances at the BCRA |
|
|
|
|
|
|
161,300,804 |
|
276,333,118 |
BCRA - current account - not restricted |
|
|
|
|
|
|
13,866,345 |
|
14,215,377 |
BCRA – special guarantee accounts – restricted (Note 10) |
|
|
|
|
|
|
|
|
|
|
|
175,167,149 |
|
290,548,495 |
|
|
|
|
|
Argentine Treasury Bond in pesos. Maturity 05-23-2027 |
|
32,432,677 |
|
- |
Argentine Treasuty Bonds in pesos at 0.7% Baldar Private Rate. Maturity 11-23-2027 |
|
12,094,420 |
|
- |
Argentine Treasury Bond in pesos at 22% fixed rate. Maturity May 2022 |
|
- |
|
43,956,008 |
Other |
|
18,535,678 |
|
- |
|
|
|
|
|
Liquidity Bills - BCRA |
|
483,450,175 |
|
209,779,172 |
|
|
|
|
|
TOTAL |
|
721,680,099 |
|
544,283,675 |
|
-98- |
|
The balances disclosed are consistent with those reported on a separate
basis.
|
-99- |
|
46.2 Minimum capital requirements
The regulatory breakdown of minimum capitals is as follows at the above-mentioned
date:
Minimum capital requirement |
|
12.31.2022 |
|
12.31.2021 |
|
|
|
|
|
Credit risk |
|
70,375,610 |
|
78,661,915 |
Operational risk |
|
28,301,276 |
|
28,581,680 |
Market risk |
|
1,480,984 |
|
439,821 |
|
|
|
|
|
Paid-in |
|
307,905,339 |
|
270,525,502 |
Surplus |
|
207,747,469 |
|
162,842,086 |
| 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, 2022, it amounts to 87,165. The Entity’s shareholders’ equity exceeds the minimum shareholders’
equity required by said resolution.
Besides, the required minimum contra-account of
43,583, fifty percent (50%) of the minimum shareholders’ equity amount, includes Argentine Treasury Bonds in pesos adjusted by CER
due 2024 as of December 31, 2022 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 95,949, through custody account No. 493-0005459481 held at BBVA Banco Francés S.A. As of December 31, 2022, the
company's Shareholders’ Equity exceeds the minimum amount imposed by the CNV.
|
-100- |
|
| 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).
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, 2022 and 2021, the assets of Diagonal Trust amount to 2,427 and 4,728, 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 8,137 as of December 31, 2022 and 2021, 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 566,062 and 776,644
as of December 31, 2022 and 2021, respectively, and consist of cash, creditors' rights, real estate and shares.
|
-101- |
|
As of December 31, 2022 and 2021, 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 109,428,622 and
171,590,586, 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 FUND |
12.31.2022 |
|
12.31.2021 |
|
|
|
|
FBA Renta Pesos |
407,850,435 |
|
342,397,312 |
FBA Renta Fija Plus |
10,875,178 |
|
32,453,951 |
FBA Ahorro Pesos |
6,854,300 |
|
5,931,612 |
FBA Bonos Argentina |
1,454,238 |
|
1,535,833 |
FBA Calificado |
2,194,610 |
|
1,770,564 |
FBA Acciones Argentinas |
2,197,591 |
|
1,398,714 |
FBA Acciones Latinoamericanas |
1,041,318 |
|
1,027,448 |
FBA Horizonte |
385,581 |
|
718,713 |
FBA Renta Mixta |
704,774 |
|
568,108 |
FBA Gestión I |
43,013 |
|
68,374 |
FBA Bonos Globales |
28,253 |
|
231,169 |
FBA Renta Publica I |
238,358 |
|
51,844 |
FBA Retorno Total I |
19,321 |
|
39,208 |
FBA Horizonte Plus |
11,750 |
|
39,315 |
FBA Renta Fija Local |
2,545 |
|
4,046 |
|
|
|
|
|
|
|
|
|
433,901,265 |
|
388,236,211 |
| 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 No. 19359.”
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 who served
in the capacities described below at the date when the breaches were
|
-102- |
|
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 Supreme
Court of Justice. The case has been called for resolution.
·
“Banco Francés S.A. over breach of Law No. 19359.”
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.
·
“BBVA Banco Francés S.A. over breach of Law No. 19359".
Administrative Proceedings for Foreign Exchange Offense initiated by
|
-103- |
|
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.
·
“BBVA Banco Francés S.A. over breach of Law No. 19359".
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 and (ii) an officer of the Area. 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.
"BBVA Banco Francés S.A. over breach
of Law No. 19359". 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. (i) 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 who held the positions described below as of the date of the alleged facts: (i) the Foreign
Trade
|
-104- |
|
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. The Bank and the officials considered to be liable appealed such ruling.
·
BBVA ARGENTINA S.A. Financial summary proceedings brought by the
B.C.R.A. Notified on June 24, 2021 and identified under No. 1587, file No. 188/55/21. 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.
·
BBVA ARGENTINA S.A. Financial summary proceedings 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 relevant answers
to the charges have been filed.
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.
|
-105- |
|
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 |
|
Chairwoman |
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).
|
|
-106- |
|
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).
|
|
-107- |
|
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).
|
|
-108- |
|
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).
|
|
-109- |
|
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).
|
|
-110- |
|
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). |
Senior Management is made up of the General Manager
and by those executive officers who have decision-making powers and who report
|
-111- |
|
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.
|
-112- |
|
| 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.
|
-113- |
|
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. |
|
-114- |
|
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. |
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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. |
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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.
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| 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, 2021, 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, 2022 |
Shareholder |
Amount |
Class percentage |
Banco Bilbao Vizcaya Argentaria S.A. |
244,870,969 |
39.97 |
BBV América S.L. (1) |
160,110,585 |
26.13 |
The Bank of New York Mellon (2) |
103,200,699 |
16.984 |
ANSES (Administración Nacional de la Seguridad Social) |
43,279,620 |
7.06 |
| (1)BBV | América S.L. is controlled by BBVA. Direct holder of 26.13 % of BBVA Argentina's share capital. |
| (2)As | an agent holder of ADSs. |
| V. | Organizational structure |
[References: General Manager: Martin Zarich - Chair
Cabinet: Tomas Rebagliatti – Internal Audit: Adolfo Rivera Guzman - Commercial: Hernán Jordán - Business Development:
Juan Kindt - Corporate & Investment Banking: Carlos Elizalde - Finance: Carmen Morillo Arroyo - Engineering & Data: Leandro Alvarez
- Risks: Gerardo Fiandrino - Talent & Culture: Gustavo Fernandez - Institutional Relations: Hernan Carboni – Internal Control
and Compliance: Monica Etcheverry -
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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.
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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:
a) 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.
b) Supervise the independence, effectiveness and operation
of Internal Audit.
c) 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.
d) 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.
e) 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.
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f) 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.
g) 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.
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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.
Structure:
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.
Functions:
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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.
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·
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).
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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 Lever 3 (NIII) of Technology, Physical, Information and Data Security Risk Control
Specialist (Secretary).
Specifically, this Committee shall be in charge of:
·
Overseeing the proper operation of the IT environment and contributing
to an improvement in its efficiency.
·
Approving the IT and Systems Plan and assessing it from time to time
to review the degree of compliance.
·
Reviewing the reports issued by the auditors in connection with the
IT and Systems environment and watching for the execution of corrective actions to address or minimize the identified weaknesses, taking
into account their associated risks.
·
Approving physical and/or logic security policies and/or plans to mitigate
the risk associated to the Entity’s systems.
·
Maintaining timely communications with the officers of the Systems External
Audit Division of the Superintendency of Financial and Exchange Entities in connection with the issues identified during the audits conducted
at the entities, and with the monitoring of the actions taken to find an IT solution to such issues.
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·
The Committee shall be empowered to define new review functions or
areas, as deemed necessary, in order for the Entity’s Information Systems to comply with overall objectives of Effectiveness, Efficiency,
Confidentiality, Integrity, Availability, Reliability and Compliance.
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 Banking and Institutional
Business Manager, the Accounting Manager, the Investor Relations Manager, and the Head 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
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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
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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
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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;
|
-129- |
|
·
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.
|
-130- |
|
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.
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.
|
-131- |
|
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
|
-132- |
|
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.
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.
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.
|
-133- |
|
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. |
|
-134- |
|
| 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. | Events after reporting period |
Play Digital S.A. – Capital contribution
On February 24, 2023, an irrevocable capital contribution
on account of future subscription of shares was made to Play Digital S.A., amounting to 396,030. Such contribution was made in order to
have working capital for the performance of activities.
The Bank’s ownership interest as of the date of
the contribution is 11.057% of the company.
No other 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, 2022.
| 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.
|
-135- |
|
|
|
|
|
|
|
|
EXHIBIT B |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLASSIFICATION OF LOANS AND OTHER FINANCING ACCORDING TO FINANCIAL PERFORMANCE |
AND GUARANTEES RECEIVED CONSOLIDATED WITH SUBSIDIARIES |
AS OF DECEMBER 31, 2022 AND 2021 |
(stated in thousands of pesos in constant currency - Note 2.1.5) |
(Translation of Financial statements originally issued in Spanish - See Note 54) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Account |
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
|
|
|
|
|
COMMERCIAL PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normal performance |
|
|
|
256,231,306 |
|
217,579,328 |
|
|
Preferred collaterals and counter-guarantees "A" |
|
|
|
1,809,915 |
|
10,419,438 |
|
|
Preferred collaterals and counter-guarantees "B" |
|
|
|
2,790,125 |
|
1,432,522 |
|
|
No preferred collaterals and counter-guarantees |
|
|
|
251,631,266 |
|
205,727,368 |
|
|
|
|
|
|
|
|
|
|
With special follow-up |
|
|
|
767,843 |
|
- |
|
Under negotiation or with refinancing agreements |
|
|
|
767,843 |
|
- |
|
|
Preferred collaterals and counter-guarantees "A" |
|
|
|
|
|
|
|
|
Preferred collaterals and counter-guarantees "B" |
|
|
|
129,163 |
|
- |
|
|
No preferred collaterals and counter-guarantees |
|
|
|
638,680 |
|
- |
|
|
|
|
|
|
|
|
|
|
Troubled |
|
|
|
1,099,963 |
|
1,027,107 |
|
|
No preferred collaterals and counter-guarantees |
|
|
|
1,099,963 |
|
1,027,107 |
|
|
|
|
|
|
|
|
|
|
With high risk of insolvency |
|
|
|
142,407 |
|
291,757 |
|
|
No preferred collaterals and counter-guarantees |
|
|
|
142,407 |
|
291,757 |
|
|
|
|
|
|
|
|
|
|
Uncollectible |
|
|
|
27,351 |
|
3,377,533 |
|
|
Preferred collaterals and counter-guarantees "B" |
|
|
|
- |
|
312,035 |
|
|
No preferred collaterals and counter-guarantees |
|
|
|
27,351 |
|
3,065,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
|
258,268,870 |
|
222,275,725 |
|
|
|
|
|
|
|
|
|
|
|
-136- |
|
|
|
|
|
|
|
|
EXHIBIT B |
|
|
|
|
|
|
|
|
(Continued) |
|
|
|
|
|
|
|
|
|
|
CLASSIFICATION OF LOANS AND OTHER FINANCING ACCORDING TO FINANCIAL PERFORMANCE |
AND GUARANTEES RECEIVED CONSOLIDATED WITH SUBSIDIARIES |
AS OF DECEMBER 31, 2022 AND 2021 |
(stated in thousands of pesos in constant currency - Note 2.1.5) |
(Translation of Financial statements originally issued in Spanish - See Note 54) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Account |
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
|
|
|
|
|
CONSUMER AND HOUSING PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normal performance |
|
|
|
490,556,621 |
|
543,943,229 |
|
|
Preferred collaterals and counter-guarantees "A" |
|
|
|
165,597 |
|
213,801 |
|
|
Preferred collaterals and counter-guarantees "B" |
|
|
|
56,026,470 |
|
76,422,119 |
|
|
No preferred collaterals and counter-guarantees |
|
|
|
434,364,554 |
|
467,307,309 |
|
|
|
|
|
|
|
|
|
|
Low risk |
|
|
|
5,859,202 |
|
4,842,343 |
|
|
Preferred collaterals and counter-guarantees "A" |
|
|
|
- |
|
4 |
|
|
Preferred collaterals and counter-guarantees "B" |
|
|
|
558,170 |
|
392,970 |
|
|
No preferred collaterals and counter-guarantees |
|
|
|
5,301,032 |
|
4,449,369 |
|
|
|
|
|
|
|
|
|
|
Low risk - with special follow-up |
|
|
|
185,401 |
|
328,530 |
|
|
No preferred collaterals and counter-guarantees |
|
|
|
185,401 |
|
328,530 |
|
|
|
|
|
|
|
|
|
|
Medium risk |
|
|
|
3,974,342 |
|
4,066,604 |
|
|
Preferred collaterals and counter-guarantees "A" |
|
|
|
51 |
|
- |
|
|
Preferred collaterals and counter-guarantees "B" |
|
|
|
165,216 |
|
287,041 |
|
|
No preferred collaterals and counter-guarantees |
|
|
|
3,809,075 |
|
3,779,563 |
|
|
|
|
|
|
|
|
|
|
High risk |
|
|
|
2,796,517 |
|
5,004,140 |
|
|
Preferred collaterals and counter-guarantees "A" |
|
|
|
- |
|
78 |
|
|
Preferred collaterals and counter-guarantees "B" |
|
|
|
200,020 |
|
437,942 |
|
|
No preferred collaterals and counter-guarantees |
|
|
|
2,596,497 |
|
4,566,120 |
|
|
|
|
|
|
|
|
|
|
Uncollectible |
|
|
|
583,637 |
|
854,294 |
|
|
Preferred collaterals and counter-guarantees "A" |
|
|
|
4,302 |
|
5,004 |
|
|
Preferred collaterals and counter-guarantees "B" |
|
|
|
243,977 |
|
289,850 |
|
|
No preferred collaterals and counter-guarantees |
|
|
|
335,358 |
|
559,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
|
503,955,720 |
|
559,039,140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GRAND TOTAL |
|
|
762,224,590 |
|
781,314,865 |
|
|
|
|
|
|
|
|
|
|
|
-137- |
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT C |
|
|
|
|
|
|
|
|
|
|
|
|
CONCENTRATION OF LOANS AND OTHER FINANCING |
CONSOLIDATED WITH SUBSIDIARIES |
AS OF DECEMBER 31, 2022 AND 2021 |
(stated in thousands of pesos in constant currency - Note 2.1.5) |
(Translation of Financial statements originally issued in Spanish - See Note 54) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
|
|
% over |
|
|
|
% over |
Number of customers |
|
|
Debt |
|
total |
|
Debt |
|
total |
|
|
|
|
|
balance |
|
portfolio |
|
balance |
|
portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10 largest customers |
|
|
|
|
54,029,409 |
|
7.09% |
|
55,769,835 |
|
7.14% |
50 following largest customers |
|
|
|
85,345,462 |
|
11.20% |
|
73,178,177 |
|
9.37% |
100 following largest customers |
|
|
54,865,087 |
|
7.20% |
|
49,476,707 |
|
6.33% |
All other customers |
|
|
|
|
567,984,632 |
|
74.51% |
|
602,890,146 |
|
77.16% |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
|
762,224,590 |
|
100.00% |
|
781,314,865 |
|
100.00% |
|
-138- |
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT D |
BREAKDOWN BY TERM OF LOANS AND OTHER FINANCING |
CONSOLIDATED WITH SUBSIDIARIES |
AS OF DECEMBER 31, 2022 |
|
(stated in thousands of pesos in constant currency - Note 2.1.5) (1) |
|
(Translation of Financial statements originally issued in Spanish - See Note 54) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Terms
remaining to maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio |
1 |
3 |
6 |
12 |
24 |
more
than |
|
|
ITEM |
|
due |
month |
months |
months |
months |
months |
24 |
TOTAL |
|
|
|
|
|
|
|
|
|
months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-financial
government sector |
-
|
1,399
|
-
|
-
|
-
|
-
|
-
|
1,399
|
|
BCRA |
|
-
|
9,034
|
-
|
-
|
-
|
-
|
-
|
9,034
|
|
Financial
sector |
|
-
|
761,148
|
1,211,438
|
1,991,092
|
1,134,039
|
4,597,937
|
1,808,089
|
11,503,743
|
|
Non-financial
private sector and |
|
|
|
|
|
|
|
|
|
residents
abroad |
|
7,035,090
|
363,710,350
|
120,223,036
|
89,335,657
|
74,812,867
|
75,710,484
|
137,279,617
|
868,107,101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
7,035,090
|
364,481,931
|
121,434,474
|
91,326,749
|
75,946,906
|
80,308,421
|
139,087,706
|
879,621,277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2021 |
|
(stated in thousands of pesos in constant currency - Note 2.1.5) (1) |
|
(Translation of Financial statements originally issued in Spanish - See Note 54) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Terms
remaining to maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio |
1 |
3 |
6 |
12 |
24 |
more
than |
|
|
ITEM |
|
due |
month |
months |
months |
months |
months |
24 |
TOTAL |
|
|
|
|
|
|
|
|
|
months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-financial
government sector |
-
|
1,441
|
-
|
-
|
-
|
-
|
-
|
1,441
|
|
Financial
sector |
|
-
|
1,190,570
|
1,238,037
|
1,441,356
|
4,685,169
|
2,195,494
|
4,781,830
|
15,532,456
|
|
Non-financial
private sector and |
|
|
|
|
|
|
|
|
|
residents
abroad |
|
11,987,544
|
352,677,051
|
110,207,200
|
89,755,896
|
86,717,817
|
73,530,603
|
121,206,364
|
846,082,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
11,987,544
|
353,869,062
|
111,445,237
|
91,197,252
|
91,402,986
|
75,726,097
|
125,988,194
|
861,616,372
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
These balances are total contractual flows and, therefore, include principal, accrued and to be accrued interest and charges. |
|
|
|
-139- |
|
EXHIBIT F |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT |
CONSOLIDATED WITH SUBSIDIARIES |
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022 |
(stated in thousand of pesos constant currency- Note 2.1.5.) |
(Translation of Financial statements originally issued in Spanish - See Note 54) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment |
|
Depreciation |
|
|
|
Original |
|
Total |
|
|
|
|
|
|
|
|
ITEM |
Value |
|
estimated |
|
Transfer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resdual
value |
|
at
the beginning |
|
useful
life |
|
|
|
Additions |
Derecognitions |
|
Loss |
|
Accumulated |
|
Transfer |
|
Derecognition |
|
For
the year |
|
At
year-end |
|
as
of 12.31.22 |
|
of
the year |
|
in
years |
|
|
|
|
|
|
|
|
as
of 12.31.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property
and equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real
estate |
80,690,323 |
|
50 |
|
(3,602,455) |
|
4,262,639 |
218,813 |
|
703,761 |
|
8,281,040 |
|
(273,672) |
|
218,814 |
|
1,828,818 |
|
9,617,372 |
|
70,810,561 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Furniture
and facilities |
24,684,301 |
|
10 |
|
- |
|
1,697,203 |
731,612 |
|
- |
|
11,042,519 |
|
- |
|
731,611 |
|
2,569,842 |
|
12,880,750 |
|
12,769,142 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Machinery
and equipment |
10,158,036 |
|
5 |
|
- |
|
1,862,525 |
5,095,790 |
|
- |
|
6,086,439 |
|
- |
|
5,095,793 |
|
2,815,327 |
|
3,805,973 |
|
3,118,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicles |
530,291 |
|
5 |
|
- |
|
164,742 |
11,604 |
|
- |
|
345,366 |
|
- |
|
15,871 |
|
73,897 |
|
403,392 |
|
280,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Right
of use of leased property |
12,916,019 |
|
10 |
|
- |
|
1,760,228 |
824,835 |
|
- |
|
6,217,585 |
|
- |
|
240,561 |
|
2,018,680 |
|
7,995,704 |
|
5,855,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
in progress |
2,185,255 |
|
- |
|
- |
|
1,084,893 |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
3,270,148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
property and equipment |
131,164,225 |
|
|
|
(3,602,455) |
|
10,832,230 |
6,882,654 |
|
703,761 |
|
31,972,949 |
|
(273,672) |
|
6,302,650 |
|
9,306,564 |
|
34,703,191 |
|
96,104,394 |
INVESTMENT PROPERTY |
CONDOLIDATED WITH SUBSIDIARIES |
FOR THE FISCAL YEAR ENDED DECEMBER 2022 |
(stated in thousands of pesos constant currency - Note 2.1.5.) |
(Translation of Financial statements originally issued in Spanish - See Note 54) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
ITEM |
|
Original |
Total |
|
|
|
|
|
|
|
|
|
|
|
value
at the |
estimated |
|
Transfer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residual
value |
|
|
beginning |
useful
life |
|
|
|
Additions |
|
Derecognitions |
|
Accumulated |
|
Transfer |
|
Derecognition |
|
For
the year |
|
At
year-end |
|
as
of 12.31.22 |
|
|
of
the year |
in
years |
|
|
|
|
|
|
|
as
of 12.31.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased
property |
|
5,493,993 |
50 |
|
3,602,455 |
|
11,257,430 |
|
- |
|
426,558 |
|
273,672 |
|
- |
|
293,151 |
|
993,381 |
|
19,360,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
investment property |
|
446,411 |
10 |
|
- |
|
- |
|
- |
|
59,724 |
|
- |
|
- |
|
9,664 |
|
69,388 |
|
377,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Investment Property |
|
5,940,404 |
|
|
3,602,455 |
|
11,257,430 |
|
- |
|
486,282 |
|
273,672 |
|
- |
|
302,815 |
|
1,062,769 |
|
19,737,520 |
|
-140- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT G |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTANGIBLE ASSETS |
CONSOLIDATED WITH SUBSIDIARIES |
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022 |
(stated in thousands of pesos constant currency - Note 2.1.5.) |
(Translation of Financial statements originally issued in Spanish - See Note 54) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ITEM |
|
|
|
|
|
|
|
|
Amortization |
|
|
Original |
|
Total |
|
|
|
|
|
|
|
value
at the |
|
estimated |
|
|
|
|
|
|
|
|
|
|
|
|
|
Residual
value |
beginning |
|
useful
life |
|
Additions |
|
Derecognitions |
|
Accumulated |
|
Derecognitions |
|
For
the year |
|
At
year-ed |
|
as
of 12.31.22 |
of
the year |
|
in
years |
|
|
|
|
|
as
of 12.31.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Licenses |
9,150,689 |
|
5 |
|
5,577,772 |
|
2,882,168 |
|
1,990,885 |
|
420,149 |
|
657,996 |
|
2,228,732 |
|
9,617,561 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
intangible assets |
9,150,689 |
|
|
|
5,577,772 |
|
2,882,168 |
|
1,990,885 |
|
420,149 |
|
657,996 |
|
2,228,732 |
|
9,617,561 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-141- |
|
|
|
|
|
|
|
|
EXHIBIT H |
|
|
|
|
|
|
|
|
|
|
DEPOSITS CONCENTRATION |
CONSOLIDATED WITH SUBSIDIARIES |
AS OF DECEMBER 31, 2022 AND 2021 |
(stated in thousands of pesos in constant currency - Note 2.1.5) |
(Translation of Financial statements originally issued in Spanish - See Note 54) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
% over |
|
|
% over |
|
Number of customers |
|
Debt |
total |
|
Debt |
total |
|
|
|
|
balance |
portfolio |
|
balance |
portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10 largest customers |
|
97,819,282 |
7.45% |
|
147,859,331 |
10.72% |
|
|
|
|
|
|
|
|
|
|
|
50 following largest customers |
|
141,088,812 |
10.74% |
|
153,801,795 |
11.15% |
|
|
|
|
|
|
|
|
|
|
|
100 following largest customers |
|
53,449,577 |
4.07% |
|
66,893,598 |
4.85% |
|
|
|
|
|
|
|
|
|
|
|
All other customers |
|
1,021,462,557 |
77.74% |
|
1,011,235,286 |
73.28% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
1,313,820,228 |
100.00% |
|
1,379,790,010 |
100.00% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-142- |
|
|
|
|
|
|
|
|
|
EXHIBIT I |
|
BREAKDOWN OF FINANCIAL LIABILITIES BY REMAINING TERMS |
CONSOLIDATED WITH SUBSIDIARIES |
|
AS OF DECEMBER 31, 2022 |
|
(stated in thousands of pesos constant currency - Note 2.1.5.) (1) |
|
(Translation of Financial statements originally issued in Spanish - See Note 54) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Terms
remaining to maturity |
|
|
|
|
|
|
|
|
|
|
|
1 |
3 |
6 |
12 |
24 |
more
than |
|
|
ITEMS |
month |
months |
months |
months |
months |
24 |
TOTAL |
|
|
|
|
|
|
|
months |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
1,129,054,260
|
105,059,856
|
105,809,428
|
1,351,537
|
77,673
|
-
|
1,341,352,754
|
|
Non-financial
government sector |
9,602,123
|
134,977
|
-
|
-
|
-
|
-
|
9,737,100
|
|
Financial
sector |
340,009
|
-
|
-
|
-
|
-
|
-
|
340,009
|
|
Non-financial
private sector and residents abroad |
1,119,112,128
|
104,924,879
|
105,809,428
|
1,351,537
|
77,673
|
-
|
1,331,275,645
|
|
Derivative
instruments |
334,340
|
-
|
-
|
-
|
-
|
-
|
334,340
|
|
Other
financial liabilities |
116,875,346
|
280,230
|
372,876
|
595,415
|
1,046,348
|
4,869,365
|
124,039,580
|
|
Financing
received from the BCRA and other financial institutions |
13,893,275
|
1,580,482
|
3,886,380
|
2,353,676
|
2,212,007
|
176,662
|
24,102,482
|
|
Corporate
bonds issued |
-
|
191,183
|
-
|
-
|
-
|
-
|
191,183
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
1,260,157,221
|
107,111,751
|
110,068,684
|
4,300,628
|
3,336,028
|
5,046,027
|
1,490,020,339
|
|
|
|
|
|
|
|
|
|
|
(1)
These balances are total contractual cash flows and, therefore, include principal, accrued and to be accrued interests and charges. |
|
|
|
|
|
|
|
|
|
|
BREAKDOWN OF FINANCIAL LIABILITIES BY REMAINING TERMS |
CONSOLIDATED WITH SUBSIDIARIES |
|
AS OF DECEMBER 31, 20221 |
|
(stated in thousands of pesos constant currency - Note 2.1.5.) (1) |
|
(Translation of Financial statements originally issued in Spanish - See Note 54) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Terms
remaining to maturity |
|
|
|
|
|
|
|
|
|
|
|
1 |
3 |
6 |
12 |
24 |
more
than |
|
|
ITEMS |
month |
months |
months |
months |
months |
24 |
TOTAL |
|
|
|
|
|
|
|
months |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
1,231,595,756
|
68,550,312
|
106,663,528
|
883,562
|
48,235
|
879
|
1,407,742,272
|
|
Non-financial
government sector |
25,902,807
|
107,984
|
-
|
-
|
-
|
-
|
26,010,791
|
|
Financial
sector |
423,287
|
-
|
-
|
-
|
-
|
-
|
423,287
|
|
Non-financial
private sector and residents abroad |
1,205,269,662
|
68,442,328
|
106,663,528
|
883,562
|
48,235
|
879
|
1,381,308,194
|
|
Derivative
instruments |
612,069
|
-
|
-
|
-
|
-
|
-
|
612,069
|
|
Other
financial liabilities |
117,932,778
|
466,064
|
629,425
|
1,134,343
|
1,670,390
|
6,728,440
|
128,561,440
|
|
Financing
received from the BCRA and other financial institutions |
14,294,245
|
619,152
|
2,655,122
|
3,397,083
|
4,595,997
|
423,083
|
25,984,682
|
|
Corporate
bonds issued |
-
|
195,952
|
195,952
|
391,904
|
195,952
|
-
|
979,760
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
1,364,434,848
|
69,831,480
|
110,144,027
|
5,806,892
|
6,510,574
|
7,152,402
|
1,563,880,223
|
|
|
|
|
|
|
|
|
|
|
(1)
These balances are total contractual cash flows and, therefore, include principal, accrued and to be accrued interests and charges. |
|
-143- |
|
|
|
|
|
|
|
|
|
|
EXHIBIT J |
|
|
|
|
|
|
|
|
|
|
|
|
PROVISIONS |
CONSOLIDATED WITH SUBSIDIARIES |
AS OF DECEMBER 31, 2022 |
(stated in thousands of pesos in constant currency - Note 2.1.5) |
(Translation of Financial statements originally issued in Spanish - See Note 54) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decreases |
|
|
|
|
|
Accounts |
Balances |
|
|
|
|
|
|
|
Monetary
gain (loss) generated by provisions |
|
Balances
|
|
at
the beginning |
Increases |
|
Reversals |
|
Uses |
|
|
|
as
of 12.31.22 |
|
of
the year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCLUDED
IN LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Provisions for contingent commitments |
1,662,857
|
2,044,813
|
(1)(4) |
-
|
|
-
|
|
|
(1,013,472) |
|
2,694,198
|
|
|
|
|
|
|
|
|
|
|
|
|
-
For administrative, disciplinary and criminal penalties |
9,740
|
-
|
|
-
|
|
-
|
|
|
(4,740) |
|
5,000
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Provisions for reorganization |
2,616,915
|
2,373,713
|
(3) |
227,853
|
|
3,703,183
|
|
|
(1,059,592) |
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Provisions for termination plans |
512,723
|
224,244
|
|
-
|
|
-
|
|
|
(282,950) |
|
454,017
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Other |
6,131,735
|
3,888,668
|
(2)(5) |
1,748
|
|
848,113
|
|
|
(3,654,312) |
|
5,516,230
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
PROVISIONS |
10,933,970
|
8,531,438
|
|
229,601
|
|
4,551,296
|
|
|
(6,015,066) |
|
8,669,445
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 statemens. |
(4) |
It includes an increase of
2,664 for exchange differences in foreign currency for contingent commitments. |
(5) |
It
includes a decrease of 479 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.
|
|
-144- |
|
|
|
|
|
|
|
|
|
|
EXHIBIT J |
|
|
|
|
|
|
|
|
|
|
|
|
PROVISIONS |
CONSOLIDATED WITH SUBSIDIARIES |
AS OF DECEMBER 31, 2021 |
(stated in thousands of pesos in constant currency - Note 2.1.5) |
(Translation of Financial statements originally issued in Spanish - See Note 54) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decreases |
|
|
|
|
|
Accounts |
Balances |
|
|
|
|
|
|
|
Monetary
gain (loss) generated by provisions |
|
Balance |
|
at
the beginning |
Increases |
|
Reversals |
|
Uses |
|
|
|
as
of 12.31.21 |
|
of
the year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCLUDED
IN LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Provisions for contingent commitments |
4,012,231
|
1,382,454
|
(1)(3) |
2,344,672
|
(1) |
-
|
|
|
(1,387,156) |
|
1,662,857
|
|
|
|
|
|
|
|
|
|
|
|
|
-
For administrative, disciplinary and criminal penalties |
14,701
|
-
|
|
-
|
|
-
|
|
|
(4,961) |
|
9,740
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Provisions for reorganization |
5,966,220
|
4,411,298
|
(1) |
576,486
|
|
5,648,848
|
|
|
(1,535,269) |
|
2,616,915
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Provisions for termination plans |
417,356
|
252,580
|
(1) |
-
|
|
-
|
|
|
(157,213) |
|
512,723
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Other |
23,327,785
|
2,850,626
|
(1)
(2) |
13,088,517
|
(4) |
1,217,504
|
|
|
(5,740,655) |
|
6,131,735
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
PROVISIONS |
33,738,293
|
8,896,958
|
|
16,009,675
|
|
6,866,352
|
|
|
(8,825,254) |
|
10,933,970
|
(1) |
See Note 23. |
(2) |
It includes an increase
of 2,696 for subsidiary Consolidar Administradora de Fondos de Jubilaciones y Pensiones S.A. (undergoing liquidation proceedings)
recorded under Administrative Expenses
It includes an increase of 767 for subsidiary BBVA Asset Management Argentina S.A. |
(3) |
It includes an increase of 28,268 for exchange
differences in foreign currency for contingent commitments. |
(4) |
It includes 13,084,114 of tax provision reversals
(see Note 11.c)) recorded under Income Tax |
|
-145- |
|
|
|
|
|
|
|
EXHIBIT P |
|
|
|
|
|
|
|
|
CONSOLIDATED CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES |
AS OF DECEMBER 31, 2022 |
(stated in thousands of pesos 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 Fair value hierarchy |
Level
1 |
Level
2 |
Level
3 |
FINANCIAL
ASSETS |
|
|
|
|
|
|
Cash
and deposits in banks |
|
|
|
|
|
|
Cash
|
117,455,922
|
-
|
-
|
-
|
-
|
-
|
Financial
institutions and correspondents |
178,836,392
|
-
|
-
|
-
|
-
|
-
|
Debt
securities at fair value through profit or loss |
-
|
-
|
25,519,962
|
3,917,279
|
21,602,683
|
-
|
Derivative
instruments |
-
|
-
|
2,268,201
|
-
|
2,268,201
|
-
|
Repo
transactions |
|
|
|
|
|
|
Argentine
Central Bank (BCRA) |
52,564,802
|
-
|
-
|
-
|
-
|
-
|
Other
financial assets |
29,278,345
|
-
|
3,926,704
|
3,926,704
|
-
|
-
|
Loans
and other financing |
|
|
|
|
|
|
Non-financial
Government sector |
1,399
|
-
|
-
|
-
|
-
|
-
|
BCRA |
9,034
|
-
|
-
|
-
|
-
|
-
|
Other
financial institutions |
4,464,832
|
-
|
-
|
-
|
-
|
-
|
Non-financial
private sector and residents abroad |
733,510,960
|
-
|
-
|
-
|
-
|
-
|
Overdrafts |
62,947,418
|
-
|
-
|
-
|
-
|
-
|
Instruments |
117,688,860
|
-
|
-
|
-
|
-
|
-
|
Mortgage
loans |
38,509,996
|
-
|
-
|
-
|
-
|
-
|
Pledge
loans |
24,708,033
|
-
|
-
|
-
|
-
|
-
|
Consumer
loans |
71,324,186
|
-
|
-
|
-
|
-
|
-
|
Credit
cards |
274,537,256
|
-
|
-
|
-
|
-
|
-
|
Finance
leases |
6,388,015
|
-
|
-
|
-
|
-
|
-
|
Other |
137,407,196
|
-
|
-
|
-
|
-
|
-
|
Other
debt securities |
44,527,097
|
600,576,208
|
-
|
52,601,929
|
547,323,980
|
650,299
|
Financial
assets pledged as collateral |
29,495,681
|
16,699,438
|
-
|
16,187,316
|
512,122
|
-
|
Investments
in equity instruments |
-
|
60,468
|
877,879
|
877,879
|
60,468
|
-
|
TOTAL
FINANCIAL ASSETS |
1,190,144,464
|
617,336,114
|
32,592,746
|
77,511,107
|
571,767,454
|
650,299
|
|
-146- |
|
|
|
|
|
|
|
EXHIBIT P |
|
|
|
|
|
|
(Continued) |
|
|
|
|
|
|
|
CONSOLIDATED CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES |
AS OF DECEMBER 31, 2022 |
(stated in thousands of pesos 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 Fair value hierarchy |
Level
1 |
Level
2 |
Level
3 |
FINANCIAL
LIABILITIES |
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
Non-financial
government sector |
9,680,134
|
-
|
-
|
-
|
-
|
-
|
Financial
sector |
340,009
|
-
|
-
|
-
|
-
|
-
|
Non-financial
private sector and residents abroad |
|
|
|
|
|
|
Checking
accounts |
253,464,723
|
-
|
-
|
-
|
-
|
-
|
Savings
acounts |
499,037,378
|
-
|
-
|
-
|
-
|
-
|
Time
deposits and investments |
540,718,266
|
-
|
-
|
-
|
-
|
-
|
Other |
10,579,718
|
-
|
-
|
-
|
-
|
-
|
Derivative
instruments |
-
|
-
|
334,340
|
-
|
334,340
|
-
|
Repo
transactions |
|
|
|
|
|
|
Other
financial liabilities |
118,432,421
|
-
|
-
|
-
|
-
|
-
|
Financing
received from the BCRA and other financial institutions |
19,873,142
|
-
|
-
|
-
|
-
|
-
|
Corporate
bonds issued |
191,183
|
-
|
-
|
-
|
-
|
-
|
TOTAL
FINANCIAL LIABILITIES |
1,452,316,974
|
-
|
334,340
|
-
|
334,340
|
-
|
|
|
|
|
|
|
|
|
-147- |
|
|
|
|
|
|
|
EXHIBIT P |
|
|
|
|
|
|
|
|
CONSOLIDATED CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES |
AS OF DECEMBER 31, 2021 |
(stated in thousands of pesos 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 Fair value hierarchy |
Level
1 |
Level
2 |
Level
3 |
FINANCIAL
ASSETS |
|
|
|
|
|
|
Cash
and deposits in banks |
|
|
|
|
|
|
Cash
|
144,641,271
|
-
|
-
|
-
|
-
|
-
|
Financial
institutions and correspondents |
280,679,566
|
-
|
-
|
-
|
-
|
-
|
Debt
securities at fair value through profit or loss |
-
|
-
|
2,721,113
|
2,719,594
|
1,519
|
-
|
Derivative
instruments |
-
|
-
|
5,486,313
|
-
|
5,486,313
|
-
|
Repo
transactions |
|
|
|
|
|
|
Argentine
Central Bank (BCRA) |
267,934,977
|
-
|
-
|
-
|
-
|
-
|
Other
financial assets |
25,437,779
|
-
|
3,710,885
|
3,710,885
|
-
|
-
|
Loans
and other financing |
|
|
|
|
|
|
Non-financial
Government sector |
1,441
|
-
|
-
|
-
|
-
|
-
|
Other
financial institutions |
8,282,236
|
-
|
-
|
-
|
-
|
-
|
Non-financial
private sector and residents abroad |
756,655,154
|
-
|
-
|
-
|
-
|
-
|
Overdrafts |
43,883,358
|
-
|
-
|
-
|
-
|
-
|
Instruments |
100,074,117
|
-
|
-
|
-
|
-
|
-
|
Mortgage
loans |
44,624,959
|
-
|
-
|
-
|
-
|
-
|
Pledge
loans |
31,832,424
|
-
|
-
|
-
|
-
|
-
|
Consumer
loans |
79,769,338
|
-
|
-
|
-
|
-
|
-
|
Credit
cards |
306,094,971
|
-
|
-
|
-
|
-
|
-
|
Finance
leases |
5,673,027
|
-
|
-
|
-
|
-
|
-
|
Other |
144,702,960
|
-
|
-
|
-
|
-
|
-
|
Other
debt securities |
43,956,008
|
316,392,721
|
-
|
98,430,498
|
215,933,999
|
2,028,225
|
Financial
assets pledged as collateral |
30,517,448
|
8,988,656
|
-
|
8,988,656
|
-
|
-
|
Investments
in equity instruments |
-
|
70,288
|
4,249,004
|
748,613
|
70,287
|
3,500,391
|
TOTAL
FINANCIAL ASSETS |
1,558,105,880
|
325,451,665
|
16,167,315
|
114,598,246
|
221,492,118
|
5,528,616
|
|
|
|
|
|
|
|
|
-148- |
|
|
|
|
|
|
|
EXHIBIT P |
|
|
|
|
|
|
(Continued) |
|
|
|
|
|
|
|
CONSOLIDATED CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES |
AS OF DECEMBER 31, 2021 |
(stated in thousands of pesos 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 Fair value hierarchy |
Level
1 |
Level
2 |
Level
3 |
FINANCIAL LIABILITIES |
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
Non-financial government sector |
25,857,759 |
- |
- |
- |
- |
- |
Financial sector |
423,287 |
- |
- |
- |
- |
- |
Non-financial private sector
and residents abroad |
|
|
|
|
|
|
Checking accounts |
331,959,368 |
- |
- |
- |
- |
- |
Savings accounts |
555,534,445 |
- |
- |
- |
- |
- |
Time deposits and investments |
453,362,651 |
- |
- |
- |
- |
- |
Other |
12,652,500 |
- |
- |
- |
- |
- |
Derivative instruments |
- |
- |
612,069 |
- |
612,069 |
- |
Repo transactions |
|
|
|
|
|
|
Other financial liabilities |
119,977,796 |
- |
- |
- |
- |
- |
Financing received from the BCRA and other financial
institutions |
22,903,783 |
- |
- |
- |
- |
- |
Corporate bonds issued |
979,760 |
- |
- |
- |
- |
- |
TOTAL
FINANCIAL LIABILITIES |
1,523,651,349 |
- |
612,069 |
- |
612,069 |
- |
|
-149- |
|
|
|
EXHIBIT Q |
|
|
|
CONDOLIDATED BREAKDOWN OF PROFIT OR LOSS |
AS OF DECEMBER 31, 2022 AND 2021 |
(stated in thousands of pesos constant currency - Note 2.1.5.) |
(Translation of Financial statements originally issued in Spanish - See Note 54) |
|
|
|
Items |
Net Financial Income/(Expense) |
Statutory Measurement |
12.31.22 |
12.31.21 |
Due to measurement of financial assets at fair value through profit or loss |
|
|
Income from government securities |
10,679,557 |
5,290,090 |
Income from private securities |
1,535,840 |
(898,934) |
Income from financial derivative instruments |
|
|
Forward transactions |
1,492,046 |
6,309,957 |
Interest rate swap |
101,095 |
94,492 |
Put options |
(34,657) |
(2,302,454) |
Income from other financial assets |
19,644 |
8,717 |
Income from loans and other financing |
|
|
To the financial sector |
21 |
- |
Income from the sale or write-off of financial assets at fair value |
4,388,676 |
- |
Due to measurement of financial assets at fair value through profit or loss |
|
|
Income / (loss) from other financial liabilities |
(5,301) |
- |
TOTAL |
18,176,921 |
8,501,868 |
|
|
|
|
|
|
Interest and adjustments due to application of effective interest rate of financial assets measured at amortized cost |
Financial Income/(Expense) |
12.31.22 |
12.31.21 |
Interest income |
|
|
Cash and deposits in banks |
549,280 |
1,735,828 |
Government securities |
14,226,852 |
9,332,224 |
Loans and other financing |
339,777,305 |
239,207,672 |
To the financial sector |
2,495,452 |
2,064,828 |
To the non-financial private sector |
|
|
Overdrafts |
28,767,653 |
16,494,956 |
Instruments |
39,596,631 |
28,643,882 |
Mortgage loans |
3,042,462 |
3,353,342 |
Pledge loans |
10,611,023 |
10,849,682 |
Conusmer loans |
32,075,984 |
28,325,500 |
Credit cards |
62,619,226 |
49,780,744 |
Finance leases |
1,971,750 |
1,864,308 |
Other |
158,597,124 |
97,830,430 |
Repo transactions |
31,858,523 |
73,245,986 |
Argentine Central Bank (BCRA) |
31,796,314 |
73,013,417 |
Other financial institutions |
62,209 |
232,569 |
TOTAL |
386,411,960 |
323,521,710 |
|
|
|
Interest expense |
|
|
Deposits |
(280,510,824) |
(170,308,158) |
Checking accounts |
(39,664,114) |
(26,886,481) |
Savings accounts |
(1,604,249) |
(1,016,781) |
Term deposits and investments |
(239,236,238) |
(142,396,576) |
Other |
(6,223) |
(8,320) |
Financing received from the BCRA and other financial institutions |
(8,698,548) |
(5,421,401) |
Repo transactions |
(26,871) |
(5,515) |
Other financial institutions |
(26,871) |
(5,515) |
Other financial liabilities |
(673,415) |
(1,644,297) |
TOTAL |
(289,909,658) |
(177,379,371) |
|
-150- |
|
|
|
|
|
EXHIBIT Q |
|
|
|
|
(Continued) |
|
|
|
|
|
CONSOLIDATED BREAKDOWN OF PROFIT OR LOSS |
AS OF DECEMBER 31, 2022 AND 2021 |
(stated in thousands of pesos 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 |
12.31.22 |
12.31.21 |
12.31.22 |
12.31.21 |
Private debt securities |
662,812 |
305,251 |
118,722 |
57,004 |
Government debt securities |
242,274,843 |
94,789,795 |
(12,892,168) |
1,436,371 |
TOTAL |
242,937,655 |
95,095,046 |
(12,773,446) |
1,493,375 |
|
|
|
|
|
|
Commission income |
Income for the year |
12.31.22 |
12.31.21 |
Linked to obligations |
33,755,718 |
32,811,467 |
Linked to loans |
6,650,776 |
5,375,823 |
Linked to lean commitments and financial guarantees |
3,554 |
18,311 |
Linked to securities |
907,751 |
1,128,510 |
Linked to cards |
33,118,776 |
39,898,039 |
Linked to insurance |
3,521,043 |
3,840,993 |
Linked to foreign trade and exchange transactions |
3,521,768 |
4,008,489 |
TOTAL |
81,479,386 |
87,081,632 |
|
|
|
|
|
|
Commission expenses |
Income for the year |
12.31.22 |
12.31.21 |
Linked to transactions with securities |
(15,701) |
(23,315) |
Linked to foreign trade and exchange transactions |
(985,471) |
(993,322) |
Other |
(33,735,386) |
(39,962,352) |
TOTAL |
(34,736,558) |
(40,978,989) |
|
-151- |
|
|
|
|
|
|
|
|
|
EXHIBIT R |
|
|
|
|
|
|
|
|
|
ADJUSTMENT TO IMPAIRMENT LOSS - ALLOWANCES FOR LOAN LOSSES |
CONSOLIDATED WITH SUBSIDIARIES |
AS OF DECEMBER 31, 2022 |
(stated in thousands of 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 |
ECL
for the |
|
|
Monetary |
|
Balance |
|
|
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 |
|
561,113
|
125,051
|
-
|
112,858
|
(336,987) |
|
462,035
|
|
|
|
|
|
|
|
|
|
Loans
and other financing |
|
26,595,184
|
3,094,669
|
2,945,533
|
1,274,862
|
(13,020,525) |
|
20,889,723
|
Other
financial institutions |
|
81,146
|
186,068
|
183,499
|
(2,690) |
(214,968) |
|
233,055
|
Non-financial
private sector and residents abroad |
26,514,038
|
2,908,601
|
2,762,034
|
1,277,552
|
(12,805,557) |
|
20,656,668
|
Overdrafts |
|
626,669
|
522,652
|
209,250
|
332,279
|
(648,392) |
|
1,042,458
|
Instruments |
|
1,170,687
|
185,772
|
(20,941) |
(16,044) |
(556,365) |
|
763,109
|
Mortgage
loans |
|
1,431,984
|
65,078
|
263,388
|
848,189
|
(893,517) |
|
1,715,122
|
Pledge
loans |
|
1,107,229
|
(235,291) |
17,458
|
303,255
|
(429,607) |
|
763,044
|
Consumer
loans |
|
5,001,884
|
376,074
|
(17,040) |
1,354,402
|
(2,616,339) |
|
4,098,981
|
Credit
cards |
|
9,475,453
|
1,337,225
|
2,958,061
|
1,527,812
|
(5,202,819) |
|
10,095,732
|
Finance
leases |
|
186,037
|
67,065
|
8,541
|
53,540
|
(102,405) |
|
212,778
|
Other |
|
7,514,095
|
590,026
|
(656,683) |
(3,125,881) |
(2,356,113) |
|
1,965,444
|
|
|
|
|
|
|
|
|
|
Other
debt securities |
|
29,433
|
23,071
|
-
|
-
|
(20,417) |
|
32,087
|
|
|
|
|
|
|
|
|
|
Contingent
commitments |
|
1,662,857
|
1,373,183
|
638,080
|
33,550
|
(1,013,472) |
|
2,694,198
|
|
|
|
|
|
|
|
|
|
TOTAL
ALLOWANCES |
|
28,848,587
|
4,615,974
|
3,583,613
|
1,421,270
|
(14,391,401) |
|
24,078,043
|
|
-152- |
|
SEPARATE STATEMENT OF FINANCIAL POSITION |
AS OF DECEMBER 31, 2022 AND 2021 |
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes and Exhibits |
|
12.31.22 |
|
12.31.21 |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and deposits in banks |
4 and Exhibit P |
|
295,871,339 |
|
424,725,835 |
|
|
|
|
|
|
|
|
|
|
Cash |
|
|
117,455,917 |
|
144,641,261 |
|
Financial institutions and correspondents |
|
|
178,415,422 |
|
280,084,574 |
|
Argentine Central Bank (BCRA) |
|
|
161,300,804 |
|
276,333,118 |
|
Other in the country and abroad |
|
|
17,114,618 |
|
3,751,456 |
|
|
|
|
|
|
|
|
|
|
Debt securities at fair value through profit or loss |
5, Exhibits A and P |
|
25,519,962 |
|
2,721,113 |
|
|
|
|
|
|
|
|
|
|
Derivatives |
6 and Exhibit P |
|
2,268,201 |
|
5,486,313 |
|
|
|
|
|
|
|
|
|
|
Repo transactions |
7 and Exhibit P |
|
52,564,802 |
|
267,934,977 |
|
|
|
|
|
|
|
|
|
|
Other financial assets |
8 |
|
27,968,555 |
|
24,295,896 |
|
|
|
|
|
|
|
|
|
|
Loans and other financing |
9 |
|
681,878,706 |
|
702,099,768 |
|
|
|
|
|
|
|
|
|
|
Non-financial government sector |
|
|
1,399 |
|
1,441 |
|
Argentine Central Bank (BCRA) |
|
|
9,034 |
|
- |
|
Other financial institutions |
|
|
17,098,700 |
|
23,444,594 |
|
Non-financial private sector and residents abroad |
|
|
664,769,573 |
|
678,653,733 |
|
|
|
|
|
|
|
|
|
|
Other debt securities |
10, Exhibits A and P |
|
645,042,791 |
|
360,348,729 |
|
|
|
|
|
|
|
|
|
|
Financial assets pledged as collateral |
11 and Exhibit P |
|
46,192,511 |
|
39,504,727 |
|
|
|
|
|
|
|
|
|
|
Current income tax assets |
12. a) |
|
- |
|
4,390,609 |
|
|
|
|
|
|
|
|
|
|
Investments in equity instruments |
13, Exhibits A and P |
|
938,347 |
|
4,319,292 |
|
|
|
|
|
|
|
|
|
|
Investments in subsidiaries and associates |
14 |
|
12,707,317 |
|
13,848,319 |
|
|
|
|
|
|
|
|
|
|
Property and equipment |
15 and Exhibit F |
|
96,019,342 |
|
99,106,305 |
|
|
|
|
|
|
|
|
|
|
Intangible assets |
16 and Exhibit G |
|
9,550,473 |
|
7,104,155 |
|
|
|
|
|
|
|
|
|
|
Other non-finacial assets |
17 |
|
28,775,658 |
|
16,477,115 |
|
|
|
|
|
|
|
|
|
|
Non-current assets held for sale |
18 |
|
225,079 |
|
588,486 |
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
|
1,925,523,083 |
|
1,972,951,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes and exhibits are an integral part of these separate financial statements. |
|
|
|
|
|
|
|
|
-153- |
|
SEPARATESTATEMENT OF FINANCIAL POSITION |
AS OF DECEMBER 31, 2022 AND 2021 |
(stated in thousands of pesos in constant currency - Note 2.1.5 to the consolidated condensed interim financial statements) |
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes and Exhibits |
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
19, Exhibits H and P |
|
1,308,068,379 |
|
1,377,544,293 |
|
|
|
|
|
|
|
|
|
|
Non-financial Government Sector |
|
|
9,680,134 |
|
25,857,759 |
|
Financial Sector |
|
|
608,498 |
|
737,083 |
|
Non-financial Private Sector and Residents Abroad |
|
|
1,297,779,747 |
|
1,350,949,451 |
|
|
|
|
|
|
|
|
|
|
Derivatives |
6 and Exhibit P |
|
334,340 |
|
612,069 |
|
|
|
|
|
|
|
|
|
|
Other financial liabilities |
21 and Exhibit P |
|
116,709,627 |
|
118,135,028 |
|
|
|
|
|
|
|
|
|
|
Financing received from the BCRA and other financial institutions |
22 and Exhibit P |
|
3,037,598 |
|
3,177,150 |
|
|
|
|
|
|
|
|
|
|
Current income tax liabilities |
12 b) |
|
6,534,960 |
|
- |
|
|
|
|
|
|
|
|
|
|
Provisions |
J |
|
8,525,508 |
|
10,763,091 |
|
|
|
|
|
|
|
|
|
|
Deferred income tax liabilities |
|
|
6,691,575 |
|
15,990,755 |
|
|
|
|
|
|
|
|
|
|
Other non-financial liabilities |
24 |
|
115,140,391 |
|
136,218,377 |
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
|
1,565,042,378 |
|
1,662,440,763 |
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
|
|
|
Share capital |
26 |
|
612,710 |
|
612,710 |
|
Non-capitalized contributions |
|
|
77,582,620 |
|
77,582,620 |
|
Capital adjustments |
|
|
55,995,859 |
|
55,995,859 |
|
Reserves |
|
|
174,962,334 |
|
136,645,230 |
|
Retained earnings |
|
|
10,803 |
|
(2,946,632) |
|
Other accumulated comprehensive income/(loss) |
|
|
(7,498,606) |
|
1,357,353 |
|
Income for the period/year |
|
|
58,814,985 |
|
41,263,736 |
|
TOTAL EQUITY |
|
|
|
|
|
|
|
|
|
|
|
360,480,705 |
|
310,510,876 |
|
TOTAL LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
1,925,523,083 |
|
1,972,951,639 |
|
|
|
|
|
|
|
|
|
|
Notes and exhibits are an integral part of these separate financial statements. |
|
|
|
|
|
|
|
|
-154- |
|
SEPARATE STATEMENT OF INCOME |
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2022 AND 2021 |
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes and Exhibits |
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
|
|
|
Interest income |
|
|
27 and Exhibit Q |
|
608,706,348 |
|
401,879,645 |
Interest expense |
28 and Exhibit Q |
|
(279,931,830) |
|
(170,064,942) |
|
|
|
|
|
|
|
|
Net interest income |
|
|
328,774,518 |
|
231,814,703 |
|
|
|
|
|
|
|
|
Commission income |
29 and Exhibit Q |
|
75,755,280 |
|
82,801,514 |
Commission expenses |
30 and Exhibit Q |
|
(34,436,596) |
|
(40,721,227) |
|
|
|
|
|
|
|
|
Net commission income |
|
|
41,318,684 |
|
42,080,287 |
|
|
|
|
|
|
|
|
Net income from financial instruments at fair value through profit or loss |
31 and Exhibit Q |
|
16,633,679 |
|
7,368,115 |
Net income (loss) from write-down of assets at amortized cost and at fair value through OCI |
32 |
|
289,948 |
|
(238,226) |
Foreing exchange and gold gains/(losses) |
33 |
|
8,128,040 |
|
10,789,483 |
Other operating income |
34 |
|
21,015,929 |
|
16,040,124 |
Loan loss allowance |
|
|
(18,682,577) |
|
(15,718,348) |
|
|
|
|
|
|
|
|
Net operating income |
|
|
397,478,221 |
|
292,136,138 |
|
|
|
|
|
|
|
|
Personnel benefits |
35 |
|
(66,682,454) |
|
(59,833,884) |
Administrative expenses |
36 |
|
(66,846,301) |
|
(62,008,127) |
Depreciation and amortization |
37 |
|
(10,878,624) |
|
(10,786,801) |
Other operating expenses |
38 |
|
(58,622,787) |
|
(49,567,748) |
|
|
|
|
|
|
|
|
Operating income |
|
|
194,448,055 |
|
109,939,578 |
|
|
|
|
|
|
|
|
Income from associates and joint ventures |
|
|
1,420,838 |
|
2,224,465 |
Gain (loss) on net monetary position |
|
|
(134,764,818) |
|
(71,978,506) |
|
|
|
|
|
|
|
|
Income before income tax |
|
|
|
61,104,075 |
|
40,185,537 |
|
|
|
|
|
|
|
|
Income tax |
12. d) |
|
(2,289,090) |
|
1,078,199 |
|
|
|
|
|
|
|
|
Net income for the year |
|
|
58,814,985 |
|
41,263,736 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes and exhibits are an integral part of these separate financial statements. |
|
|
|
|
|
-155- |
|
SEPARATE STATEMENT OF INCOME |
FOR THE FISCAL YEARS ENDED ENDED DECEMBER 31, 2022 AND 2021 |
EARNINGS PER SHARE |
AS OF DECEMBER 31, 2022 AND 2021 |
(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 43) |
|
|
|
|
|
|
|
|
Accounts |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to owners of the Parent |
|
|
58,814,985 |
|
41,263,736 |
Net income attributable to owners of the Parent adjusted to reflect the effect of dilution |
|
58,814,985 |
|
41,263,736 |
|
|
|
|
|
|
|
|
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 thousands of pesos) |
|
|
95.9915 |
|
67.3463 |
Diluted earnings per share (stated in thousands of pesos) (1) |
|
|
95.9915 |
|
67.3463 |
| (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. |
|
-156- |
|
SEPARATE STATEMENT OF OTHER COMPREHENSIVE INCOME |
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2022 AND 2021 |
|
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note |
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
|
|
|
Net income for the year |
|
|
58,814,985 |
|
41,263,736 |
|
|
|
|
|
|
|
|
Other comprehesive 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 OCI from associates and joint ventures at equity method |
|
|
109,004 |
|
(6,940) |
|
|
|
|
|
|
|
|
|
|
|
109,004 |
|
(6,940) |
|
|
|
|
|
|
|
|
Profit or losses from financial instruments at fair value through OCI |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(Loss) for the year on financial instruments at fair value through OCI |
|
|
(12,460,666) |
|
1,339,785 |
|
Reclassification adjustment for the year |
|
|
(272,217) |
|
208,433 |
|
Income tax |
12.d) |
|
3,805,789 |
|
(389,109) |
|
|
|
|
|
|
|
|
|
|
|
(8,927,094) |
|
1,159,109 |
|
|
|
|
|
|
|
|
Other comprehesive 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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the year on equity instruments at fair value through OCI |
|
|
(37,869) |
|
(25,407) |
|
|
|
|
|
|
|
|
|
|
|
(37,869) |
|
(25,407) |
|
|
|
|
|
|
|
|
Total Other Comprehensive Income/(loss) for the year |
|
|
(8,855,959) |
|
1,126,762 |
|
|
|
|
|
|
|
|
Total Comprehensive Income |
|
|
49,959,026 |
|
42,390,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes and exhibits are an integral part of these separate financial statements. |
|
|
|
|
|
|
|
-157- |
|
SEPARATE STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY |
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022 |
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
|
|
Share |
|
Non-capitalized |
|
|
|
Other
Comprehensive |
Retained |
|
|
|
|
|
|
Capital |
|
contributions |
|
|
|
Income |
|
Earnings |
|
|
|
|
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
|
|
77,582,620
|
|
55,995,859
|
|
1,466,371
|
(109,018) |
|
66,237,595
|
70,407,635
|
38,317,104
|
|
310,510,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact
of the implementation of the financial reporting framework established by the BCRA -IFRS 9, paragraph 5.5 for Related Companies(Note
2.5. to the consolidated financial statements) |
-
|
|
-
|
|
-
|
|
-
|
-
|
|
-
|
-
|
10,803
|
|
10,803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
balance at the beginning of the year |
|
612,710
|
|
77,582,620
|
|
55,995,859
|
|
1,466,371
|
(109,018) |
|
66,237,595
|
70,407,635
|
38,327,907
|
|
310,521,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Net income for the year |
|
-
|
|
-
|
|
-
|
|
-
|
-
|
|
-
|
-
|
58,814,985
|
|
58,814,985
|
|
-
Other Comprehensive Income for the year |
|
-
|
|
-
|
|
-
|
|
(8,964,963) |
109,004
|
|
-
|
-
|
-
|
|
(8,855,959) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Distribution
of Unappropriated Retained Earnings as per Shareholders' Resolution dated April 29, 2022 (Note 43 to the consolidated financial statements) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal
reserve |
|
-
|
|
-
|
|
-
|
|
-
|
-
|
|
7,663,421
|
-
|
(7,663,421) |
|
-
|
|
Other |
|
-
|
|
-
|
|
-
|
|
-
|
-
|
|
-
|
30,653,683
|
(30,653,683) |
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances
at fiscal year end |
|
612,710
|
|
77,582,620
|
|
55,995,859
|
|
(7,498,592) |
(14) |
|
73,901,016
|
101,061,318
|
58,825,788
|
|
360,480,705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)It represents $ 11.42 per share. |
(2)It represents $ 10.61 per share. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
and exhibits are an integral part of these separate financial statements. |
|
-158- |
|
SEPARATE STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY |
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021 |
|
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
|
|
Share |
|
Non-capitalized |
|
|
|
Other
Comprehensive |
Retained |
|
|
|
|
|
|
Capital |
|
contributions |
|
|
|
Income |
|
Earnings |
|
|
|
|
Transactions |
|
Outstanding
shares |
|
Share
premium |
|
Adjustments
to equity |
|
Income
on financial instruments at fair value through OCI |
Other |
|
Legal |
Other
|
Retained
earnings |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restated
balances at the beginning of the year |
612,710
|
|
77,582,620
|
|
55,995,859
|
|
332,669
|
(102,078) |
|
66,237,595
|
187,597,745
|
(86,535,229) |
|
301,721,891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
income from previous years(see Note 2.1.1.b) to the consolidated financial statements) |
-
|
|
-
|
|
-
|
|
-
|
-
|
|
-
|
-
|
(2,946,642) |
|
(2,946,642) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
balance at the beginning of the year |
|
612,710
|
|
77,582,620
|
|
55,995,859
|
|
332,669
|
(102,078) |
|
66,237,595
|
187,597,745
|
(89,481,871) |
|
298,775,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Net income for the year |
|
-
|
|
-
|
|
-
|
|
-
|
-
|
|
-
|
-
|
41,263,736
|
|
41,263,736
|
|
-
Other Comprehensive Income for the year |
|
-
|
|
-
|
|
-
|
|
1,133,702
|
(6,940) |
|
-
|
-
|
-
|
|
1,126,762
|
|
--
Distribution of Unappropriated Retained Earnings as per Shareholders' Resolution dated April 20, 2021 (Note 43 to the consolidated
financial statements) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
dividends (1) |
|
-
|
|
-
|
|
-
|
|
-
|
-
|
|
-
|
(17,507,119) |
-
|
|
(17,507,119) |
|
Absorption
of accrued losses |
|
|
|
|
|
|
|
|
|
|
|
(86,535,239) |
86,535,239
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
-Distribution
of Unappropriated Retained Earnings as per Shareholders' Resoution dated November 20, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
Cash
dividends (2) |
|
-
|
|
-
|
|
-
|
|
-
|
-
|
|
-
|
(13,147,752) |
-
|
|
(13,147,752) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances
at fiscal year end |
|
612,710
|
|
77,582,620
|
|
55,995,859
|
|
1,466,371
|
(109,018) |
|
66,237,595
|
70,407,635
|
38,317,104
|
|
310,510,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)It represents $ 28.57 per share stated in historical currency |
(2) It represents $ 21.46 per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes and exhibits are an integral part of these separate financial statements. |
|
-159- |
|
SEPARATE STATEMENT OF CASH FLOWS |
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2022 AND 2021 |
(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 43) |
|
|
|
|
|
Accounts |
|
12.31.22 |
|
12.31.21 |
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Income before income tax |
61,104,075 |
|
40,185,537 |
|
|
|
|
|
Adjustment for total monetary income for the period |
|
134,764,818 |
|
71,978,506 |
|
|
|
|
|
Adjustments to obtain cash flows from operating activities: |
30,243,175 |
|
78,456,312 |
|
|
|
|
|
Depreciation and amortization |
10,878,624 |
|
10,786,801 |
Loan loss allowance |
18,682,577 |
|
15,718,348 |
Effect of foreign exhange changes on cash and cash equivalents |
|
(1,165,968) |
|
44,901,598 |
Loss for the sale of Prisma Medios de Pagos S.A. |
|
(4,388,676) |
|
- |
Income from put option taken - Prisma Medios de Pagos S.A. |
|
- |
|
2,302,454 |
Other adjustments |
6,236,618 |
|
4,747,111 |
|
|
|
|
|
Net increases from operating assets: |
(1,043,330,470) |
|
(586,399,446) |
|
|
|
|
|
Debt securities at fair value through profit or loss |
(35,287,767) |
|
(5,017,494) |
Derivatives |
1,736,775 |
|
585,176 |
Repo transactions |
149,441,563 |
|
(199,773,264) |
Loans and other financing |
(427,295,150) |
|
(217,204,810) |
Non-financial government sector |
(1,328) |
|
(321) |
Other financial institutions |
(5,306,694) |
|
(13,258,914) |
Non-financial private sector and residents abroad |
(421,987,128) |
|
(203,945,575) |
Other debt securities |
(677,796,664) |
|
(150,349,299) |
Financial assets pledged as collateral |
(34,921,838) |
|
(4,227,024) |
Investments in equity instruments |
591,247 |
|
1,730,291 |
Other assets |
(19,798,636) |
|
(12,143,022) |
|
|
|
|
|
Net increases from operating liabilities: |
921,581,432 |
|
630,367,305 |
|
|
|
|
|
Deposits |
782,170,616 |
|
528,172,882 |
Non-financial government sector |
(2,487,971) |
|
16,784,353 |
Financial sector |
382,117 |
|
(2,017,665) |
Non-financial private sector and residents abroad |
784,276,470 |
|
513,406,194 |
Liabilities at fair value through profit or loss |
41,830 |
|
127,071 |
Derivatives |
162,334 |
|
387,017 |
Other liabilities |
139,206,652 |
|
101,680,335 |
|
|
|
|
|
Income tax paid |
(222,811) |
|
(6,439,205) |
|
|
|
|
|
Total cash flows generated by operating activities |
|
104,140,219 |
|
228,149,009 |
|
-160- |
|
SEPARATE STATEMENT OF CASH FLOWS |
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2022 AND 2021 |
(stated in thousands of pesos in constant currency - Note 2.1.5.) |
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
Accounts |
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
Payments: |
(28,209,661) |
|
(16,197,453) |
|
|
|
|
|
Purchase of property and equipment, intangible assets and other assets |
(16,329,867) |
|
(15,561,294) |
Other payments related to investing activities |
(11,879,794) |
|
(636,159) |
|
|
|
|
|
Collections: |
3,547,659 |
|
4,748,395 |
|
|
|
|
|
Other collections related to investing activities |
3,547,659 |
|
4,748,395 |
|
|
|
|
|
Total cash flows used in investing activities |
(24,662,002) |
|
(11,449,058) |
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
Payments: |
(2,842,243) |
|
(14,536,634) |
|
|
|
|
|
Financing from local financial institutions |
(701,127) |
|
(6,863,188) |
Other payments related to financing activities |
|
- |
|
(4,948,127) |
Leases |
|
(2,141,116) |
|
(2,725,319) |
|
|
|
|
|
Collections: |
561,575 |
|
14,109 |
|
|
|
|
|
BCRA |
10,158 |
|
14,109 |
Other collections related to financing activities |
551,417 |
|
- |
|
|
|
|
|
Total cash flows used in financing activities |
|
(2,280,668) |
|
(14,522,525) |
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
1,165,968 |
|
(44,901,598) |
Gain/loss on net monetary position of cash and cash equivalents |
(207,218,013) |
|
(179,046,304) |
|
|
|
|
|
Total changes in cash flows |
|
(128,854,496) |
|
(21,770,476) |
Restated cash and cash equivalents at the beginning of the year (Note 4) |
|
424,725,835 |
|
446,496,311 |
Cash and cash equivalents at fiscal year-end (Note 4) |
|
295,871,339 |
|
424,725,835 |
|
|
|
|
|
Notes and exhibits are an integral part of these separate financial statements. |
|
-161- |
|
NOTES TO
THE SEPARATE FINANCIAL STATEMENTS
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 43)
| 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
BCRA.
These financial statements of the Entity 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 of the BCRA, as supplemented).
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 above mentioned paragraph 5.5. “Impairment”
been applied in full, according to global estimate made by the Entity, as of December 31, 2022 and 2021, its shareholders’ equity
would have been reduced by 4,482,561 and 3,723,823, respectively.
| b) | As of December 31, 2021, the Entity valued
its remaining interest in Prisma Medios de Pago SA (“Prisma”) following the guidelines set forth by applicable standards
and considering a valuation report as of December 31, 2020 issued by independent experts subject to the provisions of Memoranda No. 7/2019
and No. 8/2021 dated April 29, 2019 and May 22, 2021, respectively, received from the BCRA, which set forth specific provisions as regards
the measurement of such interest. Considering those provisions, the Entity has made |
|
-162- |
|
adjustments to the fair value previously determined
(see Note 12.1 to the consolidated financial statements).
In addition, the
Bank recognized an adjustment to previous years’ profits, at the request of the BCRA. By means of Memorandum No. 8/2021 dated May
22, 2021, that is, subsequent to the financial statements as of December 31, 2020, the Bank was required to adjust the fair value recognized
in respect of its equity interest in Prisma Medios de Pago S.A. as of December 31, 2020.
For disclosure
purposes only, such adjustment had an impact on the items “Investments in Equity Instruments” by 4,209,490 (decrease) and
“Unappropriated retained earnings” by 2,946,642 (net decrease in deferred income tax) in the comparative Separate Statement
of Financial Position and in the comparative Separate Statement of Changes in Shareholders’ Equity as of December 31, 2021.
In determining
the valuation of such equity interest, the Entity followed the guidelines set out under applicable standards, also considering a valuation
report as of December 31, 2020 issued by independent appraisers.
In March 2022,
the shares corresponding to the abovementioned interest were transferred 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) of previous years
and for the year 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.
| c) | On May 29, 2017, the BCRA issued Memorandum
No. 6/2017 whereby the Entity was required to account for a provision in liabilities for the reassessment of income tax applying the inflation
adjustment for tax purposes. As described in Note 12, such provision was fully reversed as from June 30, 2021. |
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.
In addition, the BCRA through Communications “A”
6323 and 6324 provided the guidelines for the preparation and presentation of financial statements of financial institutions for the fiscal
years starting on or after January 1, 2018, including the additional reporting requirements as well as the information to be presented
as Exhibits.
To avoid duplication of information already provided, we
refer to the consolidated financial statements regarding:
| · | Measuring unit (Note 2.1.5. to the consolidated
financial statements) |
| · | Significant accounting policies (Note 2.3. to
the consolidated financial statements), except for the measurement of investments in subsidiaries |
| · | Accounting judgments, estimates and assumptions
(Note 2.4. to the consolidated financial statements) |
|
-163- |
|
| · | Regulatory changes introduced during this fiscal
year and New pronouncements (Note 2.5. and 2.6., respectively, to the consolidated financial statements) |
| · | Transcription to books (Note 2.7. to the consolidated
financial statements) |
| · | Provisions (Note 23 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) |
| · | 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) |
| · | Trust activities (Note 49 to the consolidated
financial statements) |
| · | Mutual funds (Note 50 to the consolidated financial
statements) |
| · | Penalties and administrative proceedings initiated
by the BCRA (Note 51 to the consolidated financial statements) |
| · | Event after reporting period (Note 53 to the consolidated
financial statements) |
| 3. | Significant accounting policies |
Investments in subsidiaries
Subsidiaries are all entities controlled by the Entity.
The Entity 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 Entity'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, 2022 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.
The financial statements of “PSA Finance Argentina
Compañía Financiera S.A”. and “Volkswagen Financial Services Compañía Financiera S.A.” were
prepared pursuant to the model set forth in paragraph 5.5 “Impairment” of IFRS 9 as from January 1, 2022, as stated in Note
2 to the consolidated financial statements.
| 4. | Cash and deposits in banks |
|
-164- |
|
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
BCRA - Current account |
|
161,300,804 |
|
276,333,118 |
Cash |
|
117,455,917 |
|
144,641,261 |
Balances with other local and foreign institutions |
|
17,114,618 |
|
3,751,456 |
|
|
|
|
|
TOTAL |
|
295,871,339 |
|
424,725,835 |
| 5. | Debt securities at fair value through profit or loss |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
BCRA Liquidity Bills |
|
14,615,430 |
|
- |
Government securities |
|
10,904,532 |
|
2,719,594 |
Private securities - Corporate bonds |
|
- |
|
1,519 |
|
|
|
|
|
TOTAL |
|
25,519,962 |
|
2,721,113 |
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 abovementioned instruments are measured at fair value
and were recognized in the Statement of Financial Position in the item “Derivative instruments”. Changes in fair values were
recognized in the Statement of Income in “Net income from measurement of financial instruments at fair value through profit or loss”.
Breakdown is as follows:
Assets
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Debit balances linked to foreign currency forwards pending settlement in pesos |
|
2,189,239 |
|
5,480,278 |
Premium for put option taken (*) |
|
49,182 |
|
- |
Debit balances linked to interest rate swaps - floating rate for fixed rate |
|
29,780 |
|
6,035 |
|
|
|
|
|
TOTAL |
|
2,268,201 |
|
5,486,313 |
(*) In particular, the Entity subscribed for options as
set forth in Communication “A” 7546 issued by the BCRA.
Liabilities
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Credit balances linked to foreign currency forwards pending settlement in pesos |
|
334,340 |
|
612,069 |
|
|
|
|
|
TOTAL |
|
334,340 |
|
612,069 |
|
-165- |
|
The notional amounts of the forward transactions and foreign
currency forwards, stated in US Dollars (US$) and in Euros as applicable, as well as the base value of rate swaps are reported below:
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Foreign currency forwards |
|
|
|
|
|
|
|
|
|
Foreign currency forward purchases - US$ |
|
1,165,119 |
|
1,189,085 |
Foreign currenct forward sales - US$ |
|
1,217,856 |
|
1,129,832 |
Foreign currency forward sales - Euros |
|
1,825 |
|
11,432 |
|
|
|
|
|
Interest rate swaps |
|
|
|
|
|
|
|
|
|
Fixed rate for floating rate (1) |
|
1,500,000 |
|
180,000 |
(1) Floating: Badlar Rate is the interest rate for time
deposits over 1 (one) million pesos, from 30 to 35 days.
Breakdown is as follows:
Reverse repurchase transactions
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Amounts receivable for reverse repurchase transactions of BCRA bills with the BCRA |
|
52,564,802 |
|
267,934,977 |
|
|
|
|
|
TOTAL |
|
52,564,802 |
|
267,934,977 |
Repurchase transactions
No repurchase transactions were accounted for as
of December 31, 2022 and 2021.
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Measured at amortized cost |
|
|
|
|
|
|
|
|
|
Other receivables |
|
12,869,432 |
|
12,635,434 |
Receivables from sale of ownership interest in Prisma Medios de Pago S.A. |
|
10,799,016 |
|
6,670,713 |
Financial debtors from spot transactions pending settlement |
|
4,569,015 |
|
5,092,137 |
Non-financial debtors from spot transactions pending settlement |
|
87,780 |
|
15,775 |
Other |
|
59,788 |
|
384,759 |
|
|
|
|
|
|
|
28,385,031 |
|
24,798,818 |
|
|
|
|
|
Allowance for loan losses (Exhibit R) |
|
(416,476) |
|
(502,922) |
|
|
|
|
|
TOTAL |
|
27,968,555 |
|
24,295,896 |
| 9. | Loans and other financing |
The Bank holds loans and other financing under a
business model for the purpose of collecting contractual cash flows. Therefore, it measures
|
-166- |
|
loans and other financing at amortized cost.
Below is a breakdown of the related balance:
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Credit cards |
|
274,537,256 |
|
306,094,971 |
Consumer loans |
|
71,109,615 |
|
79,650,257 |
Overdrafts |
|
62,947,418 |
|
43,883,358 |
Discounted instruments |
|
58,508,686 |
|
56,750,248 |
Unsecured instruments |
|
58,203,908 |
|
39,743,482 |
Mortgage loans |
|
38,509,996 |
|
44,624,959 |
Loans for the prefinancing and financing of exports |
|
25,073,189 |
|
25,990,486 |
Other financial institutions |
|
17,999,645 |
|
24,086,229 |
Pledge loans |
|
8,796,138 |
|
9,478,923 |
Receivables from finance leases |
|
5,563,679 |
|
5,053,195 |
Loans to personnel |
|
4,816,003 |
|
5,676,879 |
Instruments purchased |
|
976,266 |
|
3,580,387 |
BCRA |
|
9,034 |
|
- |
Non-financial government sector |
|
1,399 |
|
1,441 |
Other financing |
|
75,733,303 |
|
83,690,196 |
|
|
|
|
|
|
|
702,785,535 |
|
728,305,011 |
|
|
|
|
|
Allowance for loan losses (Exhibit R) |
|
(20,906,829) |
|
(26,205,243) |
|
|
|
|
|
TOTAL |
|
681,878,706 |
|
702,099,768 |
The Bank entered into finance lease agreements related
to vehicles and machinery and equipment.
|
-167- |
|
The following table shows the total gross investment
in the finance leases (leasing) and the current value of the minimum payments to be received thereunder:
|
|
12.31.22 |
|
12.31.21 |
Term |
|
Total investment |
Current value of minimum payments |
|
Total investment |
Current value of minimum payments |
|
|
|
Up to 1 year |
|
3,196,246 |
1,301,602 |
|
2,669,090 |
1,455,052 |
From 1 to 2 years |
|
3,159,894 |
1,591,596 |
|
2,349,170 |
1,407,855 |
From 2 to 3 years |
|
2,542,373 |
1,540,606 |
|
2,035,171 |
1,471,596 |
From 3 to 4 years |
|
1,498,386 |
1,061,905 |
|
964,351 |
709,618 |
From 4 to 5 years |
|
95,471 |
67,970 |
|
13,300 |
9,074 |
|
|
|
|
|
|
|
TOTAL |
|
10,492,370 |
5,563,679 |
|
8,031,082 |
5,053,195 |
|
|
|
|
|
|
|
Principal |
|
|
5,413,497 |
|
|
4,897,493 |
Interest accrued |
|
|
150,182 |
|
|
155,702 |
|
|
|
|
|
|
|
TOTAL |
|
|
5,563,679 |
|
|
5,053,195 |
A breakdown of loans and other financing according to
credit quality standing pursuant to applicable standards issued by the BCRA is detailed in Exhibit B, while the information on the 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 with the accounting balances is included below.
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Total Exhibit B and C |
|
724,440,619 |
|
741,160,249 |
Plus: |
|
|
|
|
BCRA |
|
9,034 |
|
- |
Loans to personnel |
|
4,816,003 |
|
5,676,879 |
Interest and other items accrued receivable from financial assets with credit value impairment |
|
204,729 |
|
883,552 |
|
|
|
|
|
Less: |
|
|
|
|
Allowance for loan losses (Exhibit R) |
|
(20,906,829) |
|
(26,205,243) |
Adjustments for effective interest rate |
|
(4,118,950) |
|
(3,572,085) |
Corporate bonds |
|
(3,783,186) |
|
(2,718,068) |
Loan commitments |
|
(18,782,714) |
|
(13,125,516) |
Total loans and other financing |
|
681,878,706 |
|
702,099,768 |
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.
|
-168- |
|
As of December 31, 2022 and 2021, the Bank holds the loan
commitments booked in off-balance sheet accounts according to the financial reporting framework set forth by the BCRA:
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Liabilities related to foreign trade transactions |
|
8,474,253 |
|
4,670,457 |
Secured loans |
|
6,648,750 |
|
4,567,326 |
Overdrafts and receivables agreed not used |
|
2,120,342 |
|
2,224,017 |
Guarantees granted |
|
1,539,369 |
|
1,663,716 |
|
|
|
|
|
TOTAL |
|
18,782,714 |
|
13,125,516 |
Risks related to the aforementioned loan commitments are
assessed and controlled within the framework of the Bank's credit risks policy.
a) Financial assets measured at
amortized cost
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Argentine Treasury Bond in pesos at 43.25% fixed rate or adjusted by CER+1% - Maturity May 2027 |
|
32,432,677 |
|
- |
Argentine Treasury Bond in pesos at 0.7% Private Baldar Rate Maturity 11-23-2027 |
|
12,094,420 |
|
- |
Argentine Treasury Bond in pesos at 22% fixed rate. Maturity May 2022 |
|
- |
|
43,956,008 |
|
|
|
|
|
TOTAL |
|
44,527,097 |
|
43,956,008 |
b) Financial assets measured at
fair value through OCI
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
BCRA Liquidity Bills |
|
468,834,745 |
|
209,779,172 |
Government securities |
|
125,832,474 |
|
103,965,304 |
Private securities - Corporate bonds |
|
3,722,935 |
|
2,648,245 |
BCRA Local Bills |
|
2,125,540 |
|
- |
|
|
|
|
|
TOTAL |
|
600,515,694 |
|
316,392,721 |
| 11. | Financial assets pledged as collateral |
As of December 31, 2022 and 2021, the Bank pledged as
collateral the following financial assets:
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Guarantee trust - Government securities at fair value through OCI |
(2) |
16,699,438 |
|
8,988,656 |
BCRA - Special guarantee accounts (Note 42.1) |
(1) |
13,866,345 |
|
14,215,377 |
Deposits as collateral |
(3) |
8,235,262 |
|
7,948,548 |
Guarantee trust - USD |
(4) |
7,391,466 |
|
8,352,146 |
|
|
|
|
|
TOTAL |
|
46,192,511 |
|
39,504,727 |
| (1) | Special guarantee current accounts opened at
the BCRA for transactions related to the automated clearing houses and other similar entities. |
| (2) | 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 fund consists of government securities. |
|
-169- |
|
| (3) | Deposits pledged as collateral for activities
related to credit card transactions in the country and abroad, leases and futures contracts. |
| (4) | The trust is composed of dollars in cash and
government securities at fair value through OCI as collateral for activities related to the transactions on MAE and BYMA. |
Income tax should be booked by the liability method, which
consists in recognizing (as receivable or payable) the tax effect of temporary differences between the book and tax valuation of assets
and liabilities, and in subsequently charging them to profit or loss for the year in which such differences are reversed, having duly
considered the likelihood of using NOLs in the future.
| a) | Current income tax assets |
Below is a breakdown of the current income tax assets disclosed
in the separate statement of financial position:
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Income tax assets |
|
- |
|
4,390,609 |
|
|
|
|
|
|
|
- |
|
4,390,609 |
| b) | Current income tax liabilities |
Below is a breakdown of the current income tax liabilities
disclosed in the separate statement of financial position:
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Income tax provision |
|
6,859,600 |
|
- |
Advances |
|
(306,408) |
|
- |
Collections and withholdings |
|
(18,232) |
|
- |
|
|
|
|
|
|
|
6,534,960 |
|
- |
|
-170- |
|
The deferred tax assets and liabilities disclosed in the
separate statement of financial position are as follows:
Deferred tax assets: |
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Loan loss allowance |
|
4,709,620 |
|
5,373,712 |
Provisions |
|
12,614,464 |
|
7,918,754 |
Loans and credit card commissions |
|
1,221,034 |
|
989,255 |
Derivatives |
|
- |
|
25,456 |
Tax inflation adjustment |
|
2,113,278 |
|
6,174,780 |
Other |
|
43 |
|
1,589 |
|
|
|
|
|
Total deferred assets |
|
20,658,439 |
|
20,483,546 |
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities: |
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Intangible assets |
|
(4,838,582) |
|
(4,265,328) |
Property and equipment |
|
(12,984,257) |
|
(27,452,753) |
Investments |
|
(9,527,175) |
|
(4,756,220) |
|
|
|
|
|
Total deferred liabilities |
|
(27,350,014) |
|
(36,474,301) |
|
|
|
|
|
Net deferred tax liabilities |
|
(6,691,575) |
|
(15,990,755) |
Below are the main components of the income tax (expense)
/ benefit disclosed in the separate financial statements:
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Current income tax liabilities |
|
(7,782,481) |
|
14,953,882 |
Deferred income tax |
|
5,493,391 |
|
(13,875,683) |
|
|
|
|
|
Income tax recognized through profit or loss |
|
(2,289,090) |
|
1,078,199 |
|
|
|
|
|
Income tax recognized through OCI |
|
3,805,789 |
|
(389,109) |
|
|
|
|
|
Total income tax |
|
1,516,699 |
|
689,090 |
The income tax expense for the fiscal year ended December
31, 2022 was calculated considering the position filed by the Bank with the AFIP (Argentine Federal Revenue Agency), as indicated under
“Tax adjustment for inflation: 2021 tax year” of note 11.c) to the consolidated financial statements.
In addition, the income tax benefit for the fiscal year
ended December 31, 2021 includes the impact of the calculation of the inflation adjustment for tax purposes and the reversal of the provision
required by the BCRA, as mentioned in the section “Income tax– Inflation adjustment
|
-171- |
|
for tax purposes. Fiscal years 2016, 2017 and 2018”
of Note 11.c) 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, 2022, comparative with the previous year:
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Income before income tax |
|
61,104,075 |
|
40,185,537 |
Income tax rate |
|
35% |
|
35% |
|
|
|
|
|
Tax on taxable income |
|
21,386,426 |
|
14,064,938 |
|
|
|
|
|
Permanent differences: |
|
|
|
|
Non-taxable income |
|
(809,117) |
|
(1,118,350) |
Non-income tax deductible expenses |
|
91,088 |
|
145,000 |
Effect of tax rate change |
|
- |
|
2,869,737 |
Other |
|
- |
|
130,282 |
Accounting inflation adjustment |
|
61,049,981 |
|
35,637,072 |
Tax inflation adjustment |
|
(79,339,322) |
|
(37,783,642) |
Recovery of allowance for filing actions |
|
- |
|
(13,084,114) |
2021 tax return adjustment |
|
(89,966) |
|
(1,939,122) |
|
|
|
|
|
Income tax expense / (benefit) |
|
2,289,090 |
|
(1,078,199) |
| 13. | Investments in equity instruments |
Breakdown is as follows:
13.1 Investments in equity instruments
through profit or loss
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Private securities - Shares of other non-controlled companies |
|
877,879 |
|
748,613 |
Prisma Medios de Pago S.A. (Note 12 to the consolidated financial statements) |
|
- |
|
3,500,391 |
|
|
|
|
|
TOTAL |
|
877,879 |
|
4,249,004 |
13.2 Investments in equity instruments
through other comprehensive income
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Banco Latinoaméricano de Exportaciones S.A. |
|
58,025 |
|
67,307 |
Other |
|
2,443 |
|
2,981 |
|
|
|
|
|
TOTAL |
|
60,468 |
|
70,288 |
|
-172- |
|
| 14. | Investments in subsidiaries and associates |
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:
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
BBVA Asset Management Argentina S.A.U. Sociedad Gerente de Fondos Comunes de Inversión |
|
3,699,338 |
|
3,441,080 |
Volkswagen Financial Services Compañía Financiera S.A. |
|
3,449,976 |
|
4,081,680 |
PSA Finance Arg. Cía. Financiera S.A. |
|
2,076,720 |
|
2,291,495 |
BBVA Seguros Argentina S.A. |
|
1,197,152 |
|
1,325,212 |
Interbanking S.A. |
|
823,993 |
|
623,016 |
Rombo Compañía Financiera S.A. |
|
744,208 |
|
1,539,529 |
Play Digital S.A. (1) |
|
486,571 |
|
222,162 |
Openpay Argentina S.A. |
|
215,501 |
|
285,733 |
Consolidar A.F.J.P. S.A. (undergoing liquidation proceedings) |
|
13,858 |
|
38,412 |
|
|
|
|
|
TOTAL |
|
12,707,317 |
|
13,848,319 |
(1) In order to determine the value of this investments, the accounting
information of Play Digital S.A. as of September 30, 2022 has been used. In addition, the significant transactions made or events occurred
between October 1, 2022 and December 31, 2022 were considered. See Note 53 – Subsequent events.
| 15. | Property and equipment |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Real estate |
|
70,810,561 |
|
72,409,283 |
Furniture and facilities |
|
12,734,044 |
|
13,597,338 |
Right of use of leased real estate |
|
5,848,097 |
|
6,686,474 |
Constructions in progress |
|
3,270,148 |
|
2,185,255 |
Machinery and equipment |
|
3,113,918 |
|
4,067,015 |
Vehicles |
|
242,574 |
|
160,940 |
|
|
|
|
|
TOTAL |
|
96,019,342 |
|
99,106,305 |
The breakdown of lease assets and liabilities as well
as interest and foreign exchange differences recognized in profit or loss are stated 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 real estate, the carrying amount of the nine pieces of real estate exceeds their
recoverable value. Therefore, such amount should be written down to the recoverable value.
|
-173- |
|
The impairment loss of assets recorded under the item
“Property and equipment” is reported below:
Item |
|
Impairment |
|
|
12.31.2022 |
|
12.31.2021 |
|
|
|
|
|
Real Estate - Lavallol |
|
(21,502) |
|
(14,500) |
Real Estate - Monte Grande |
|
(95,769) |
|
(58,925) |
Real Estate - Caleta Olivia, Santa Cruz |
|
(23,915) |
|
- |
Real Estate - Cerro Las Rosas |
|
(49,898) |
|
- |
Real Estate - Libertador |
|
(350,613) |
|
- |
Real Estate - Store 1 Puerto Madero |
|
(132,586) |
|
- |
Real Estate - Store 5 Puerto Madero |
|
(82,755) |
|
- |
Real Estate - Mar del Plata |
|
(9,708) |
|
- |
Real Estate - Bahía Blanca |
|
(10,440) |
|
- |
|
|
|
|
|
TOTAL |
|
(777,186) |
|
(73,425) |
The changes in this item for year 2022 are reported in Exhibit
F, and the changes for year 2021 are reported below:
ITEM
|
Original
value as of 01.01.21 |
Total
estimated useful life in years |
Additions
|
Derecognitions
|
Impairment
|
|
Depreciation
|
Residual
value as of 12.31.2021 |
Loss
|
|
Accumulated
as of 01.01.21 |
Derecognitions
|
For
the year |
At
year end |
|
|
|
|
|
|
|
|
|
|
|
|
Real
estate |
75,181,977
|
50 |
5,614,892
|
33,121
|
73,425
|
|
6,542,286
|
33,121
|
1,771,875
|
8,281,040
|
72,409,283 |
|
|
|
|
|
|
|
|
|
|
|
|
Furniture
and facilities |
23,582,969
|
10 |
1,676,984
|
669,116
|
- |
|
9,162,127
|
669,118
|
2,500,490
|
10,993,499
|
13,597,338 |
|
|
|
|
|
|
|
|
|
|
|
|
Machinery
and equipment |
12,931,414
|
5 |
1,644,325
|
4,568,271
|
- |
|
6,644,671
|
4,568,268
|
3,864,050
|
5,940,453
|
4,067,015 |
|
|
|
|
|
|
|
|
|
|
|
|
Vehicles |
430,354
|
5 |
87,462
|
23,250
|
- |
|
286,969
|
23,248
|
69,905
|
333,626
|
160,940 |
|
|
|
|
|
|
|
|
|
|
|
|
Right
of use of leased properties |
11,903,933
|
- |
1,595,527
|
717,275
|
- |
|
4,124,902
|
11,147
|
1,981,956
|
6,095,711
|
6,686,474 |
|
|
|
|
|
|
|
|
|
|
|
|
Constructions
in progress |
1,902,057
|
- |
1,482,711
|
1,199,513
|
- |
|
- |
- |
- |
- |
2,185,255 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
125,932,704
|
|
12,101,901
|
7,210,546
|
73,425
|
|
26,760,955
|
5,304,902
|
10,188,276
|
31,644,329
|
99,106,305
|
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Licenses - Software |
|
9,550,473 |
|
7,104,155 |
|
|
|
|
|
TOTAL |
|
9,550,473 |
|
7,104,155 |
The changes in this item for year 2022 are reported in Exhibit
G, and the changes for year 2021 are reported below:
CONCEPTO
|
Valor
origen al incio del ejercicio 01.01.21 |
Vida
util total estimadas en años |
Altas
|
Bajas
|
Deterioro
|
|
Depreciación
|
Valor
residual al 12.31.2021 |
Pérdida
|
|
Acumulada
al 01.01.21 |
Bajas
|
Del
ejercicio |
Al
cierre |
|
|
|
|
|
|
|
|
|
|
|
|
Licencias
- Software |
6,210,514 |
5 |
3,459,393
|
1,532,010
|
- |
|
1,644,449
|
1,014,570
|
403,863
|
1,033,742 |
7,104,155 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
6,210,514
|
|
3,459,393
|
1,532,010
|
|
|
1,644,449
|
1,014,570
|
403,863
|
1,033,742
|
7,104,155
|
|
-174- |
|
| 17. | Other non-financial assets |
Breakdown is as follows:
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Investment properties |
|
19,737,520 |
|
5,454,122 |
Prepayments |
|
3,496,621 |
|
6,289,748 |
Tax advances |
|
2,519,431 |
|
1,708,618 |
Advances to personnel |
|
1,596,882 |
|
1,419,592 |
Advances to suppliers of goods |
|
900,865 |
|
986,280 |
Other miscellaneous assets |
|
260,410 |
|
358,347 |
Assets acquired as security for loans |
|
18,998 |
|
20,728 |
Other |
|
244,931 |
|
239,680 |
|
|
|
|
|
TOTAL |
|
28,775,658 |
|
16,477,115 |
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 this item for year 2022 are reported in Exhibit
F, and the changes for year 2021 are reported below:
ITEM
|
Original
value as of 01.01.21 |
Total
estimated useful life in years |
Additions
|
Derecognitions
|
Impairment
|
|
Depreciation
|
Residual
value as of 12.31.2021 |
Loss
|
|
Accumulated
as of01.01.21 |
Derecognitions
|
For
the year |
At
year end |
|
|
|
|
|
|
|
|
|
|
|
|
Leased
properties |
5,493,993
|
50 |
- |
- |
- |
|
332,771
|
- |
93,787
|
426,558
|
5,067,435
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
investment properties |
446,411
|
10 |
- |
- |
- |
|
49,795
|
- |
9,929
|
59,724
|
386,687
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
5,940,404
|
|
- |
- |
|
|
382,566
|
- |
103,716
|
486,282
|
5,454,122
|
| 18. | Non-current assets held for sale |
It includes pieces of real estate assets in the Argentine
Republic, which the Bank’s Board of Directors agreed to sell in the short term.
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Property and equipment held for sale |
|
225,079 |
|
588,486 |
|
|
|
|
|
TOTAL |
|
225,079 |
|
588,486 |
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 two pieces of real estate exceeds its recoverable
value. Therefore, such amount should be written down to the recoverable value.
On July 13, 2022, the real property of “Fundación
BBVA” accounted for under this item was sold. The result of the transaction was recorded under “Other operating income –
Income from sale of non-current assets held for sale” (Note 34).
|
-175- |
|
The loss impairment for non-current assets held for sale
is reported below:
Item |
|
Impairment |
|
|
12.31.2022 |
|
12.31.2021 |
|
|
|
|
|
Real Estate held for sale - Fisherton |
|
(87,487) |
|
(75,821) |
Real Estate held for sale - Mendoza |
|
(396) |
|
- |
|
|
|
|
|
TOTAL |
|
(87,883) |
|
(75,821) |
The information on concentration of deposits is disclosed
in Exhibit H. Breakdown is as follows:
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Non-financial government sector |
|
9,680,134 |
|
25,857,759 |
Financial sector |
|
608,498 |
|
737,083 |
Non-financial private sector and residents abroad |
|
1,297,779,747 |
|
1,350,949,451 |
Savings accounts |
|
499,116,331 |
|
555,623,684 |
Time deposits |
|
408,659,945 |
|
334,068,170 |
Checking accounts |
|
253,478,640 |
|
331,981,163 |
Investment accounts |
|
125,945,113 |
|
116,623,934 |
Other |
|
10,579,718 |
|
12,652,500 |
|
|
|
|
|
TOTAL |
|
1,308,068,379 |
|
1,377,544,293 |
| 20. | Liabilities at fair value through profit or loss |
No transactions were accounted for the years ended December
31, 2022 and 2021.
| 21. | Other financial liabilities |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Obligations from financing of purchases |
|
82,584,306 |
|
89,019,876 |
Collections and other transactions on behalf of third parties |
|
8,428,501 |
|
10,168,381 |
Payment orders pending credit |
|
6,527,468 |
|
4,415,163 |
Funds collected under AFIP's instructions |
|
4,680,637 |
|
2,180,209 |
Liabilities for leases (Note 25) |
|
4,120,338 |
|
5,678,938 |
Receivables from spot purchases pending settlement |
|
3,902,928 |
|
2,782,670 |
Credit balance for spot sales pending settlement |
|
2,656,925 |
|
12,015 |
Commissions accrued payable |
|
40,843 |
|
68,565 |
Other |
|
3,767,681 |
|
3,809,211 |
|
|
|
|
|
TOTAL |
|
116,709,627 |
|
118,135,028 |
| 22. | Financing received from the BCRA and other financial institutions |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Local financial institutions |
|
2,389,949 |
|
3,088,459 |
Foreign financial institutions |
|
559,652 |
|
- |
BCRA |
|
87,997 |
|
88,691 |
|
|
|
|
|
TOTAL |
|
3,037,598 |
|
3,177,150 |
|
-176- |
|
| 23. | Corporate bonds issued |
No transactions were accounted for in the years ended
December 31, 2022 and 2021.
| 24. | Other non-financial liabilities |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Miscellaneous creditors |
|
36,689,080 |
|
25,443,270 |
Advances collected |
|
19,631,164 |
|
15,892,565 |
Other collections and withholdings |
|
17,476,424 |
|
16,673,861 |
Short-term personnel benefits |
|
17,114,402 |
|
17,009,383 |
Cash dividends payable (1) |
|
14,834,791 |
|
54,542,068 |
Other taxes payable |
|
6,672,479 |
|
4,583,655 |
Long-term personnel benefits |
|
914,857 |
|
1,079,512 |
Termination benefits payable |
|
897,528 |
|
- |
For contract liabilities |
|
449,646 |
|
717,522 |
Social security payment orders pending settlement |
|
306,676 |
|
157,095 |
Other |
|
153,344 |
|
119,446 |
|
|
|
|
|
TOTAL |
|
115,140,391 |
|
136,218,377 |
| (1) | See Note 43 to the consolidated financial statements. |
The Bank as lessee
Below is a detail of the amounts related to rights
of use of leased assets and lease liabilities in force as of December 31, 2022 and 2021:
Rights of use under leases
The changes in this item for fiscal year 2022 are
reported in Exhibit F, while the changes for fiscal year 2021 are reported in Note 15 – Property and equipment.
Lease liabilities
Future minimum payments for lease agreements are
as follows:
|
In foreign currency |
|
In local currency |
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
|
|
|
Up to one year |
272,181 |
|
30,558 |
|
302,739 |
|
430,460 |
|
|
|
|
|
|
|
|
From 1 to 5 years |
2,824,095 |
|
332,634 |
|
3,156,729 |
|
3,954,784 |
|
|
|
|
|
|
|
|
More than 5 years |
651,546 |
|
9,324 |
|
660,870 |
|
1,293,694 |
|
|
|
|
|
|
|
|
|
|
|
|
|
4,120,338 |
|
5,678,938 |
|
-177- |
|
Interest and exchange rate difference
recognized in profit or loss
|
|
|
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
|
|
|
Other operating expenses |
|
|
|
|
|
|
Interest on liabilities from finance lease (Note 38) |
|
|
(619,695) |
|
(899,749) |
|
|
|
|
|
|
|
|
Exchange rate difference |
|
|
|
|
|
|
|
Exchange rate difference for finance lease (loss) |
|
(4,135,610) |
|
(3,123,752) |
Share capital information is disclosed in Note 26 to the
consolidated financial statements.
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Interest on government securities |
|
256,453,832 |
|
104,114,179 |
Stabilization Coefficient (CER) clause adjustment |
|
82,083,427 |
|
35,685,175 |
Interest on credit card loans |
|
62,619,226 |
|
49,780,744 |
Interest on instruments |
|
39,596,631 |
|
28,643,882 |
Interest on consumer loans |
|
32,075,984 |
|
28,325,500 |
Premiums on reverse repurchase agreements |
|
31,858,523 |
|
73,245,986 |
Acquisition Value Unit (UVA) clause adjustment |
|
30,856,941 |
|
26,069,390 |
Interest on overdrafts |
|
28,774,464 |
|
16,497,070 |
Interest on other loans |
|
27,073,759 |
|
20,367,681 |
Interest on loans to the financial sector |
|
8,010,605 |
|
7,168,723 |
Interest on mortgage loans |
|
3,042,462 |
|
3,353,342 |
Interest on pledge loans |
|
2,761,950 |
|
3,102,131 |
Interest on finance leases |
|
1,595,491 |
|
1,578,533 |
Interest on loans for the prefinancing and financing of exports |
|
725,826 |
|
1,906,230 |
Interest on private securities |
|
662,812 |
|
305,251 |
Other |
|
514,415 |
|
1,735,828 |
|
|
|
|
|
TOTAL |
|
608,706,348 |
|
401,879,645 |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Time deposits |
|
212,726,476 |
|
131,825,545 |
Checking accounts deposits |
|
39,664,114 |
|
26,886,481 |
Acquisition Value Unit (UVA) clause adjustments |
|
25,111,539 |
|
9,201,782 |
Savings accounts deposits |
|
1,604,249 |
|
1,016,781 |
Interfinancial loans received |
|
534,184 |
|
308,646 |
Other liabilities from financial transactions |
|
258,174 |
|
811,872 |
Premiums on reverse repurchase transactions |
|
26,871 |
|
5,515 |
Other |
|
6,223 |
|
8,320 |
|
|
|
|
|
TOTAL |
|
279,931,830 |
|
170,064,942 |
|
-178- |
|
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Linked to liabilities |
|
33,765,068 |
|
32,826,035 |
From credit cards |
|
33,118,776 |
|
39,898,039 |
From foreign trade and foreign currency transactions |
|
3,521,768 |
|
4,008,489 |
From insurance |
|
3,521,043 |
|
3,840,993 |
Linked to loans |
|
917,320 |
|
1,081,137 |
Linked to securities |
|
907,751 |
|
1,128,510 |
From guarantees granted |
|
3,554 |
|
18,311 |
|
|
|
|
|
TOTAL |
|
75,755,280 |
|
82,801,514 |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
For credit and debit cards |
|
25,207,929 |
|
32,257,543 |
For payment of salaries |
|
2,552,863 |
|
2,788,120 |
For data processing |
|
1,529,968 |
|
625,367 |
For new channels |
|
1,295,894 |
|
1,090,280 |
For foreign trade transactions |
|
985,471 |
|
993,322 |
For advertising campaigns |
|
258,602 |
|
- |
For digital sales services |
|
60,028 |
|
177,633 |
For promotions |
|
- |
|
102,091 |
Linked to transactions with securities |
|
15,701 |
|
23,315 |
Other commission expenses |
|
2,530,140 |
|
2,663,556 |
|
|
|
|
|
TOTAL |
|
34,436,596 |
|
40,721,227 |
| 31. | Net income / (loss) from financial instruments carried at fair value through profit or loss |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Income from government securities |
|
10,679,557 |
|
5,290,090 |
Income from sale or write-off of financial assets (1) |
|
4,388,676 |
|
- |
Income from foreign currency forward transactions |
|
1,492,046 |
|
6,309,957 |
Income from interest rate swaps |
|
101,095 |
|
94,492 |
Income from corporate bonds |
|
19,644 |
|
8,717 |
Income from loans |
|
21 |
|
- |
Income/(loss) from private securities |
|
(7,402) |
|
(2,032,687) |
Income/(loss) from put options taken (2) |
|
(34,657) |
|
(2,302,454) |
Other |
|
(5,301) |
|
- |
|
|
|
|
|
TOTAL |
|
16,633,679 |
|
7,368,115 |
(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.
(2) For further information as of December 31, 2021, see
Note 12.1 to the consolidated financial statements.
|
-179- |
|
| 32. | Net income / (loss) from derecognition of assets carried at amortized cost and at fair value through
other comprehensive income |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Income/(Loss) from sale of government securities |
|
217,979 |
|
(237,182) |
Income/(loss) from sale of private securities |
|
71,969 |
|
(1,044) |
|
|
|
|
|
TOTAL |
|
289,948 |
|
(238,226) |
| 33. | Foreign exchange and gold gains (losses) |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Income from purchase-sale of foreign currency |
|
12,494,497 |
|
12,917,412 |
Conversion of foreign currency assets and liabilities into pesos |
|
(4,366,457) |
|
(2,127,929) |
|
|
|
|
|
TOTAL |
|
8,128,040 |
|
10,789,483 |
| 34. | Other operating income |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Adjustments and interest on miscellaneous receivables |
|
6,829,641 |
|
4,918,830 |
Loans recovered |
|
3,346,730 |
|
2,790,957 |
Rental of safe deposit boxes |
|
2,925,146 |
|
3,117,323 |
Debit and credit card commissions |
|
1,522,153 |
|
1,177,878 |
Income from asset sale in equity instruments (1) |
1,515,485 |
|
- |
Fees expenses recovered |
|
825,182 |
|
752,919 |
Rent |
|
627,682 |
|
- |
Income from sale of non-current assets held for sale |
|
456,042 |
|
- |
Punitive interest |
|
442,144 |
|
416,787 |
Commission from syndicated transactions |
|
263,789 |
|
198,824 |
Allowances reversed |
|
227,853 |
|
576,486 |
Income from initial recognition of government securities |
|
- |
|
29,794 |
Other operating income |
|
2,034,082 |
|
2,060,326 |
|
|
|
|
|
TOTAL |
|
21,015,929 |
|
16,040,124 |
(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.
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Salaries |
|
36,500,050 |
|
35,607,922 |
Other short-term personnel benefits |
|
13,820,668 |
|
10,535,005 |
Social security withholdings and collections |
|
11,545,769 |
|
10,643,098 |
Personnel compensation and bonuses |
|
2,734,341 |
|
1,327,262 |
Personnel services |
|
1,475,814 |
|
1,106,516 |
Termination personnel benefits (Exhibit J) |
|
224,244 |
|
252,580 |
Other long-term personnel benefits |
|
381,568 |
|
361,501 |
|
|
|
|
|
TOTAL |
|
66,682,454 |
|
59,833,884 |
|
-180- |
|
| 36. | Administrative expenses |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Taxes |
|
14,167,010 |
|
13,100,113 |
Rent |
|
10,490,306 |
|
7,964,589 |
Armored transportation services |
|
7,275,411 |
|
8,017,658 |
Maintenance and repair costs |
|
6,585,531 |
|
6,895,021 |
Contracted administrative services |
|
5,999,255 |
|
5,988,626 |
IT |
|
5,719,497 |
|
3,288,336 |
Advertising |
|
3,439,564 |
|
3,017,637 |
Electricity and communications |
|
2,467,273 |
|
2,755,604 |
Documents distribution |
|
2,197,800 |
|
1,836,084 |
Other fees |
|
1,936,277 |
|
2,266,916 |
Security services |
|
1,799,102 |
|
2,078,355 |
Trade reports |
|
1,247,731 |
|
1,175,119 |
Insurance |
|
639,163 |
|
737,228 |
Representation and travel expenses |
|
438,779 |
|
311,131 |
Fees to Bank Directors and Supervisory Committee |
|
98,466 |
|
111,840 |
Stationery and supplies |
|
84,601 |
|
123,951 |
Other administrative expenses |
|
2,260,535 |
|
2,339,919 |
|
|
|
|
|
TOTAL |
|
66,846,301 |
|
62,008,127 |
| 37. | Depreciation and amortization |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Depreciation of property and equipment (Exhibit F and Note 15) |
|
7,265,376 |
|
8,206,320 |
Amortization of rights of use of leased real property (Exhibit F and Note 15) |
|
1,979,261 |
|
1,981,956 |
Loss for the sale or depreciation of property and equipment (Note 15) |
|
703,761 |
|
73,425 |
Amortization of intangible assets (Exhibit G and Note 16) |
|
625,324 |
|
403,863 |
Depreciation of other assets |
|
304,902 |
|
121,237 |
|
|
|
|
|
TOTAL |
|
10,878,624 |
|
10,786,801 |
| 38. | Other operating expenses |
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
Turnover tax |
|
38,529,060 |
|
31,223,267 |
Other allowances (Exhibit J) |
|
5,784,571 |
|
1,757,388 |
Initial recognition of loans |
|
4,206,695 |
|
3,834,054 |
Reorganization expenses (Exhibit J) |
|
2,373,713 |
|
4,411,298 |
Contribution to the Deposit Guarantee Fund |
|
2,028,590 |
|
2,186,354 |
Claims |
|
1,478,605 |
|
610,158 |
Interest on liabilities from leases (Note 25) |
|
619,695 |
|
899,749 |
Loss for the sale or depreciation of investment properties and other non-financial assets |
|
12,062 |
|
75,821 |
Other operating expenses |
|
3,589,796 |
|
4,569,659 |
|
|
|
|
|
TOTAL |
|
58,622,787 |
|
49,567,748 |
|
-181- |
|
See Note 41 to the consolidated financial statements.
| 40. | Restrictions to the distribution of earnings |
See Note 43 to the consolidated financial statements
as regards restrictions to the distribution of earnings.
As of December 31, 2022 and 2021, 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). |
|
12.31.22 |
12.31.21 |
|
|
|
Argentine Treasury Bond adjusted by CER. Maturity 2023 |
- |
45,977 |
Argentine Treasury Bond adjusted by CER. Maturity 2024 |
41,310 |
216,220 |
|
|
|
Total |
41,310 |
262,197 |
| 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, transactions settled at maturity, foreign currency futures, court proceedings and leases in the amount of 46,192,511
and 39,504,727 as of December 31, 2022 and 2021, respectively (see Note 11 to these separate financial statements). |
|
-182- |
|
| 42. | Minimum cash and minimum capital requirements |
42.1 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:
Items |
|
12.31.2022 |
|
12.31.2021 |
|
|
|
|
|
|
|
|
|
|
Balances at the BCRA |
|
|
|
|
|
|
161,300,804 |
|
276,333,118 |
BCRA - current account - not restricted |
|
|
|
|
|
|
13,866,345 |
|
14,215,377 |
BCRA – special guarantee accounts – restricted (Note 11) |
|
|
|
|
|
|
|
|
|
|
|
175,167,149 |
|
290,548,495 |
|
|
|
|
|
Argentine Treasury Bond in pesos. Maturity 05-23-2027 |
|
32,432,677 |
|
- |
Argentine Treasuty Bonds in pesos at 0.7% Baldar Private Rate. Maturity 11-23-2027 |
|
12,094,420 |
|
- |
Argentine Treasury Bond in pesos at 22% fixed rate. Maturity May 2022 |
|
- |
|
43,956,008 |
Other |
|
18,535,678 |
|
- |
|
|
|
|
|
Liquidity Bills - BCRA |
|
483,450,175 |
|
209,779,172 |
|
|
|
|
|
TOTAL |
|
721,680,099 |
|
544,283,675 |
42.2 Minimum capital requirements
The regulatory breakdown of minimum capital requirements
is as follows at the above-mentioned dates:
Minimum capital requirement |
|
12.31.2022 |
|
12.31.2021 |
|
|
|
|
|
Credit risk |
|
67,102,952 |
|
81,638,973 |
Operational risk |
|
27,434,133 |
|
29,492,236 |
Market risk |
|
1,474,618 |
|
442,182 |
|
|
|
|
|
Paid-in |
|
302,747,115 |
|
276,892,141 |
Surplus |
|
206,735,412 |
|
165,318,750 |
| 43. | Accounting principles – Explanation added for translations into English |
These separate 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.
|
-183- |
|
EXHIBIT A |
|
|
|
|
|
|
|
|
|
|
BREAKDOWN OF GOVERNMENT AND PRIVATE SECURITIES |
AS OF DECEMBER 31, 2022 AND 2021 |
(stated in thousands of pesos in constant currency - Note 2.1.5 to the consolidated condensed financial statements) |
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
HOLDING |
|
POSITION |
|
|
Fair |
Fair |
Book |
Book |
|
Position with |
|
|
Account |
Identification |
value |
value |
Value |
value |
|
no options |
Options |
Final position |
|
|
|
level |
12.31.22 |
12.31.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
Government Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Argentine Treasury Bond in pesos 16% Maturity 10-17-2023 |
5319 |
6,987,253 |
2 |
6,987,253 |
- |
|
6,987,253 |
- |
6,987,253 |
Treasury Bills adjusted by Cer Maturity 02-17-2023 |
9111 |
397,279 |
1 |
397,279 |
- |
|
397,279 |
- |
397,279 |
Treasury Bills at discount Maturity 01-03-2022 ARS |
5938 |
- |
1 |
- |
1,545,654 |
|
- |
- |
- |
Treasury Bills at discount Maturity 01-31-2022 ARS |
5917 |
- |
1 |
- |
1,173,940 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Subtotal Government Securities - In pesos |
|
7,384,532 |
|
7,384,532 |
2,719,594 |
|
7,384,532 |
- |
7,384,532 |
|
|
|
|
|
|
|
|
|
|
Government Securities - In foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Argentine Treasury Bond in dual currency. Maturity 07-31-2023 |
9146 |
3,520,000 |
1 |
3,520,000 |
- |
|
3,520,000 |
22,029 |
3,542,029 |
|
|
|
|
|
|
|
|
|
|
Subtotal Government Securities - In foreign currency |
|
3,520,000 |
|
3,520,000 |
- |
|
3,520,000 |
22,029 |
3,542,029 |
|
|
|
|
|
|
|
|
|
|
BCRA Bills - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BCRA Liquidity Bills in pesos. Maturity 01-12-2023 |
13930 |
14,615,430 |
2 |
14,615,430 |
- |
|
14,615,430 |
- |
14,615,430 |
|
|
|
|
|
|
|
|
|
|
Subtotal BCRA Bills - In pesos |
|
14,615,430 |
|
14,615,430 |
- |
|
14,615,430 |
- |
14,615,430 |
|
|
|
|
|
|
|
|
|
|
Private Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Bond Rombo Cia Financiera S.A. Class 42 |
53238 |
- |
2 |
- |
1,519 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Subtotal Private Securities - In Pesos |
|
- |
|
- |
1,519 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS |
|
25,519,962 |
|
25,519,962 |
2,721,113 |
|
25,519,962 |
22,029 |
25,541,991 |
|
-184- |
|
EXHIBIT A |
(Continued) |
BREAKDOWN OF GOVERNMENT AND PRIVATE SECURITIES |
AS OF DECEMBER 31,2022 AND 2021 |
(stated in thousands of pesos in constant currency - Note 2.1.5 to the consolidated condensed interim financial statements) |
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
HOLDING |
|
POSITION |
|
|
Fair |
Fair |
Book |
Book |
|
Position with |
|
|
Account |
Identification |
value |
Value |
value |
value |
|
no options |
Options |
Final position |
|
|
|
Level |
12.31.22 |
12.31.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER DEBT SECURITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEASURED AT FAIR VALUE THROUGH OCI |
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
Government Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Argentine Treasury Bonds adjusted by 1.55% CER in pesos. Maturity 07-26-2024 |
5405 |
25,636,731 |
2 |
25,636,731 |
- |
|
25,636,731 |
- |
25,636,731 |
Treasury Bonds adjusted by 1.50% CER in pesos. Maturity 03-25-2024 |
5493 |
24,857,192 |
1 |
24,857,192 |
24,803,535 |
|
24,857,192 |
- |
24,857,192 |
Treasury Bonds adjusted by 1.45% CER in pesos. Maturity 08-13-2023 |
5497 |
20,794,480 |
2 |
20,794,480 |
2,595,377 |
|
20,794,480 |
- |
20,794,480 |
Treasury Bills adjusted by CER. Maturity 05-19-2023 |
9127 |
13,213,522 |
1 |
13,213,522 |
- |
|
13,213,522 |
8,799 |
13,222,321 |
Treasury Bills at discount ARS Maturity 03-31-2023 |
9164 |
9,079,110 |
2 |
9,079,110 |
- |
|
9,079,110 |
- |
9,079,110 |
Treasury Bonds adjusted by 1.40% CER in pesos. Maturity 03-25-2023 |
5492/81012 |
8,730,190 |
1 |
8,730,190 |
18,929,424 |
|
8,730,190 |
- |
8,730,190 |
Argentine Bond adjusted by 2% CER in pesos Tx26 (Boncer). Maturity 11-9-2026 |
5925 |
8,263,656 |
2 |
8,263,656 |
- |
|
8,263,656 |
- |
8,263,656 |
Treasury Bills at discount ARS Maturity 04-28-2023 |
9142 |
7,994,800 |
2 |
7,994,800 |
- |
|
7,994,800 |
- |
7,994,800 |
Treasury Bills adjusted by CER. Maturity 06-16-2023 |
9152 |
4,866,346 |
1 |
4,866,346 |
- |
|
4,866,346 |
18,354 |
4,884,700 |
Treasury
Bills at discount ARS Maturity 05-31-2023 |
9171 |
1,461,768 |
2 |
1,461,768 |
- |
|
1,461,768 |
- |
1,461,768 |
Treasury Bills adjusted by CER. Maturity. 04-21-2023 |
9118 |
666,479 |
1 |
666,479 |
- |
|
666,479 |
- |
666,479 |
Treasury Bonds adjusted by 1.30% CER in pesos. Maturity 09-20-2022 |
5495 |
- |
1 |
- |
21,055,446 |
|
- |
- |
- |
Treasury Bills adjusted by CER. Maturity 02-22-2022 |
5500 |
- |
1 |
- |
12,275,705 |
|
- |
- |
- |
Treasury Bonds adjusted by 1.20% CER in pesos. Maturity 03-18-2022 |
5491/81034 |
- |
1 |
- |
8,231,290 |
|
- |
- |
- |
Treasury Bills adjusted by CER. Maturity 05-23-2022 |
5936 |
- |
1 |
- |
4,967,224 |
|
- |
- |
- |
Treasury Bills adjusted by CER. Maturity 04-18-2022 |
5934 |
- |
1 |
- |
2,663,289 |
|
- |
- |
- |
Treasury Bills adjusted by CER. Maturity 06-30-2022 |
5940 |
- |
1 |
- |
2,352,127 |
|
- |
- |
- |
Treasury Bills adjusted by CER. Maturity 10-21-2022 |
5969 |
- |
1 |
- |
1,928,452 |
|
- |
- |
- |
Treasury Bills adjusted by CER. Maturity 08-16-2022 |
5949 |
- |
1 |
- |
1,010,976 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Government Securities - In pesos |
|
125,564,274 |
|
125,564,274 |
100,812,845 |
|
125,564,274 |
27,153 |
125,591,427 |
|
|
|
|
|
|
|
|
|
|
Government Securities - In foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollar-linked Argentine Treasury Bonds. Maturity 11-30-2022 |
5937 |
- |
1 |
- |
2,105,713 |
|
- |
- |
- |
Dollar-linked Argentine Treasury Bonds. Maturity 04-28-2023 |
5928 |
268,200 |
1 |
268,200 |
1,046,746 |
|
268,200 |
- |
268,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Government Securities - In foreign currency |
|
268,200 |
|
268,200 |
3,152,459 |
|
268,200 |
- |
268,200 |
|
|
|
|
|
|
|
|
|
|
BCRA Bills - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BCRA Liquidity Bills in pesos. Maturity 01-26-2023 |
13934 |
165,810,225 |
2 |
165,810,225 |
- |
|
165,810,225 |
- |
165,810,225 |
BCRA Liquidity Bills in pesos. Maturity 01-03-2023 |
13927 |
59,522,460 |
2 |
59,522,460 |
- |
|
59,522,460 |
- |
59,522,460 |
BCRA Liquidity Bills in pesos. Maturity 01-05-2022 |
13928 |
59,285,040 |
2 |
59,285,040 |
- |
|
59,285,040 |
- |
59,285,040 |
BCRA Liquidity Bills in pesos. Maturity 01-10-2023 |
13929 |
48,913,165 |
2 |
48,913,165 |
- |
|
48,913,165 |
- |
48,913,165 |
BCRA Liquidity Bills in pesos. Maturity 01-17-2023 |
13931 |
48,233,850 |
2 |
48,233,850 |
- |
|
48,233,850 |
- |
48,233,850 |
BCRA Liquidity Bills in pesos. Maturity 01-12-2023 |
13930 |
43,846,290 |
2 |
43,846,290 |
- |
|
43,846,290 |
- |
43,846,290 |
BCRA Liquidity Bills in pesos. Maturity 01-19-2023 |
13932 |
43,223,715 |
2 |
43,223,715 |
- |
|
43,223,715 |
- |
43,223,715 |
BCRA Liquidity Bills in pesos. Maturity 01-25-2022 |
13778 |
- |
2 |
- |
47,414,199 |
|
- |
- |
- |
BCRA Liquidity Bills in pesos. Maturity 01-18-2022 |
13776 |
- |
2 |
- |
38,206,363 |
|
- |
- |
- |
BCRA Liquidity Bills in pesos. Maturity 01-11-2022 |
13774 |
- |
2 |
- |
23,089,083 |
|
- |
- |
- |
BCRA Liquidity Bills in pesos. Maturity 01-13-2022 |
13775 |
- |
2 |
- |
22,465,700 |
|
- |
- |
- |
BCRA Liquidity Bills in pesos. Maturity 01-27-2022 |
13779 |
- |
2 |
- |
20,820,315 |
|
- |
- |
- |
BCRA Liquidity Bills in pesos. Maturity 01-04-2022 |
13772 |
- |
2 |
- |
19,379,617 |
|
- |
- |
- |
BCRA Liquidity Bills in pesos. Maturity 01-06-2022 |
13773 |
- |
2 |
- |
19,339,882 |
|
- |
- |
- |
BCRA Liquidity Bills in pesos. Maturity 01-20-2022 |
13777 |
- |
2 |
- |
19,064,013 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Subtotal BCRA Bills - In pesos |
|
468,834,745 |
|
468,834,745 |
209,779,172 |
|
468,834,745 |
- |
468,834,745 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BCRA Bills - In foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local BCRA Bills in USD. Maturity 09-29-2023 |
11808 |
531,385 |
2 |
531,385 |
- |
|
531,385 |
- |
531,385 |
Local BCRA Bills in USD. Maturity 10-03-2023 |
11815 |
531,385 |
2 |
531,385 |
- |
|
531,385 |
- |
531,385 |
Local BCRA Bills in USD. Maturity 10-04-2023 |
11816 |
531,385 |
2 |
531,385 |
- |
|
531,385 |
- |
531,385 |
Local BCRA Bills in USD. Maturity 10-05-2023 |
11817 |
354,257 |
2 |
354,257 |
- |
|
354,257 |
- |
354,257 |
Local BCRA Bills in USD. Maturity 09-23-2023 |
11804 |
177,128 |
2 |
177,128 |
- |
|
177,128 |
- |
177,128 |
|
|
|
|
|
|
|
|
|
|
Subtotal BCRA Bills - In foreign currency |
|
2,125,540 |
|
2,125,540 |
- |
|
2,125,540 |
- |
2,125,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Bond Arcor Class 17 adjusted by UVA. Maturity 10-20-2025 |
55692 |
616,412 |
3 |
616,412 |
581,969 |
|
616,412 |
- |
616,412 |
Corporate Bond Refi Pampa Class 2 adjusted by UVA.Maturity 05-06-2025 |
56123 |
33,887 |
3 |
33,887 |
- |
|
33,887 |
- |
33,887 |
Corporate Bond New San Class 10 in pesos. Maturity 12-20-2022 |
55856 |
- |
3 |
- |
376,151 |
|
- |
- |
- |
Corporate Bond Petroquimica Rivadavia Class G at variable rate.Maturity 05-31-2022 |
55388 |
- |
3 |
- |
151,329 |
|
- |
- |
- |
Corporate Bond Ledesma Class 10. Maturity 05-27-2022 |
55500 |
- |
3 |
- |
505,594 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Subtotal Private Securities - In pesos |
|
650,299 |
|
650,299 |
1,615,043 |
|
650,299 |
- |
650,299 |
|
|
|
|
|
|
|
|
|
|
Private Securities - In foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Bond Vista Energy Class 13 in USD. Maturity 08-08-2024 |
56207 |
1,353,113 |
2 |
1,353,113 |
- |
|
1,353,113 |
- |
1,353,113 |
Corporate Bond Vista Energy Class 15 in USD. Maturity 01-21-2024 |
56637 |
884,871 |
2 |
884,871 |
- |
|
884,871 |
- |
884,871 |
Corporate Bond Luz De Tres Picos Class 4 in USD. Maturity 09-29-2026 |
56467 |
556,045 |
2 |
556,045 |
- |
|
556,045 |
- |
556,045 |
Corporate Bond Pcr Class H in USD |
55849 |
189,404 |
2 |
189,404 |
308,307 |
|
189,404 |
- |
189,404 |
Dollar-linked Corporate Bond Molinos Agro. Maturity 05-18-2023 |
55364 |
89,203 |
2 |
89,203 |
311,712 |
|
89,203 |
- |
89,203 |
Corporate Bond Vista Oil Y Gas. Maturity 08-27-2025 |
55584 |
- |
3 |
- |
212,227 |
|
- |
- |
- |
Corporate Bond Luz De Tres Picos in USD. Maturity 10-28-2024 |
55710 |
- |
2 |
- |
200,956 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Subtotal Private Securities - In foreign currency |
|
3,072,636 |
|
3,072,636 |
1,033,202 |
|
3,072,636 |
- |
3,072,636 |
|
|
|
|
|
|
|
|
|
|
TOTAL DEBT SECURITIES AT FAIR VALUE THROUGH OCI |
|
600,515,694 |
|
600,515,694 |
316,392,721 |
|
600,515,694 |
27,153 |
600,542,847 |
|
-185- |
|
EXHIBIT A |
(Continued) |
BREAKDOWN OF GOVERNMENT AND PRIVATE SECURITIES |
AS OF DECEMBER 31, 2022 AND 2021 |
(stated in thousands of pesos in constant currency - Note 2.1.5 to the consolidated condensed financial statements) |
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
HOLDING |
|
POSITION |
|
|
Fair |
Fair |
Book |
Book |
|
Position with |
|
|
Account |
Identification |
value |
value |
value |
value |
|
no options |
Options |
Final position |
|
|
|
level |
12.31.22 |
12.31.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER DEBT SECURITIES (Continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEASURED AT AMORTIZED COST |
|
|
|
|
|
|
|
|
|
Government Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Argentine Treasury Bonds in pesos. Maturity 05-23-2027 |
9132 |
32,432,677 |
2 |
32,432,677 |
- |
|
32,432,677 |
- |
32,432,677 |
Argentine Treasury Bonds in pesos, 0.7% Baldar Private rate. Maturity 11-23-2027 |
9166 |
12,094,420 |
2 |
12,094,420 |
- |
|
12,094,420 |
- |
12,094,420 |
Argentine Treasury Bond in pesos, 22% fixed rate. Maturity May 2022 |
5496 |
- |
2 |
- |
43,956,008 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Subtotal Government Securities - In pesos |
|
44,527,097 |
|
44,527,097 |
43,956,008 |
|
44,527,097 |
- |
44,527,097 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL DEBT SECURITIES AT AMORTIZED COST |
|
44,527,097 |
|
44,527,097 |
43,956,008 |
|
44,527,097 |
- |
44,527,097 |
|
|
|
|
|
|
|
|
|
|
TOTAL OTHER DEBT SECURITIES |
|
645,042,791 |
|
645,042,791 |
360,348,729 |
|
645,042,791 |
27,153 |
645,069,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY INSTRUMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
Private Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BYMA - Bolsas y Mercados Argentina Share |
|
559,360 |
1 |
559,360 |
506,462 |
|
559,360 |
- |
559,360 |
Banco de Valores de Bs. As. Share |
|
318,519 |
1 |
318,519 |
242,151 |
|
318,519 |
- |
318,519 |
Prisma Medios de Pago S.A. (1) |
|
- |
3 |
- |
3,500,391 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Subtotal Private Securities - In pesos |
|
877,879 |
|
877,879 |
4,249,004 |
|
877,879 |
- |
877,879 |
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS |
877,879 |
|
877,879 |
4,249,004 |
|
877,879 |
- |
877,879 |
|
|
|
|
|
|
|
|
|
|
MEASURED AT FAIR VALUE THROUGH OCI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
Private Securities - In pesos |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
217 |
2 |
217 |
466 |
|
217 |
- |
217 |
|
|
|
|
|
|
|
|
|
|
Subtotal Private Securities - In pesos |
|
217 |
|
217 |
466 |
|
217 |
- |
217 |
|
|
|
|
|
|
|
|
|
|
Foreign: |
|
|
|
|
|
|
|
|
|
Private Securities - In foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
60,251 |
2 |
60,251 |
69,822 |
|
60,251 |
- |
60,251 |
|
|
|
|
|
|
|
|
|
|
Subtotal Private Securities - In foreign currency |
|
60,251 |
|
60,251 |
69,822 |
|
60,251 |
- |
60,251 |
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY INSTRUMENTS AT FAIR VALUE THROUGH OCI |
|
60,468 |
|
60,468 |
70,288 |
|
60,468 |
- |
60,468 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY INSTRUMENTS |
|
938,347 |
|
938,347 |
4,319,292 |
|
938,347 |
- |
938,347 |
|
-186- |
|
|
|
|
|
|
|
|
EXHIBIT B |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLASSIFICATION OF LOANS AND OTHER FINANCING ACCORDING TO FINANCIAL |
PERFORMANCE AND GUARANTEES RECEIVED |
AS OF DECEMBER 31, 2022 AND 2021 |
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
|
|
|
COMMERCIAL PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normal performance |
|
|
|
245,960,697 |
|
214,614,621 |
|
Preferred collaterals and counter-guarantees "A" |
|
|
|
1,809,915 |
|
10,419,438 |
|
Preferred collaterals and counter-guarantees "B" |
|
|
|
2,069,672 |
|
1,206,270 |
|
No preferred collaterals and counter-guarantees |
|
|
|
242,081,110 |
|
202,988,913 |
|
|
|
|
|
|
|
|
With special follow-up |
|
|
|
767,843 |
|
- |
|
|
|
|
|
|
|
|
Under negotiation or refinancing agreements |
|
|
|
767,843 |
|
- |
|
Preferred collaterals and counter-guarantees "B" |
|
|
|
129,163 |
|
- |
|
No preferred collaterals and counter-guarantees |
|
|
|
638,680 |
|
- |
|
|
|
|
|
|
|
|
Troubled |
|
|
|
1,099,963 |
|
1,027,107 |
|
No preferred collaterals and counter-guarantees |
|
|
|
1,099,963 |
|
1,027,107 |
|
|
|
|
|
|
|
|
With high risk of insolvency |
|
|
|
142,407 |
|
291,757 |
|
No preferred collaterals and counter-guarantees |
|
|
|
142,407 |
|
291,757 |
|
|
|
|
|
|
|
|
Uncollectible |
|
|
|
27,351 |
|
3,377,533 |
|
Preferred collaterals and counter-guarantees "B" |
|
|
|
- |
|
312,035 |
|
No preferred collaterals and counter-guarantees |
|
|
|
27,351 |
|
3,065,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
|
|
247,998,261 |
|
219,311,018 |
|
-187- |
|
|
|
|
|
|
|
|
EXHIBIT B |
|
|
|
|
|
|
|
(Continued) |
|
|
|
|
|
|
|
|
CLASSIFICATION OF LOANS AND OTHER FINANCING ACCORDING TO FINANCIAL |
PERFORMANCE AND GUARANTEES RECEIVED |
AS OF DECEMBER 31, 2022 AND 2021 |
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
|
|
|
CONSUMER AND HOUSING PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normal performance |
|
|
|
463,623,404 |
|
507,510,532 |
|
Preferred collaterals and counter-guarantees "A" |
|
|
|
165,597 |
|
213,801 |
|
Preferred collaterals and counter-guarantees "B" |
|
|
|
38,572,614 |
|
51,367,369 |
|
No preferred collaterals and counter-guarantees |
|
|
|
424,885,193 |
|
455,929,362 |
|
|
|
|
|
|
|
|
Low risk |
|
|
|
5,648,840 |
|
4,750,768 |
|
Preferred collaterals and counter-guarantees "A" |
|
|
|
- |
|
4 |
|
Preferred collaterals and counter-guarantees "B" |
|
|
|
369,875 |
|
317,579 |
|
No preferred collaterals and counter-guarantees |
|
|
|
5,278,965 |
|
4,433,185 |
|
|
|
|
|
|
|
|
Low risk - with special follow-up |
|
|
|
185,401 |
|
328,530 |
|
No preferred collaterals and counter-guarantees |
|
|
|
185,401 |
|
328,530 |
|
|
|
|
|
|
|
|
Medium risk |
|
|
|
3,879,150 |
|
3,930,510 |
|
Preferred collaterals and counter-guarantees "A" |
|
|
|
51 |
|
- |
|
Preferred collaterals and counter-guarantees "B" |
|
|
|
83,781 |
|
170,902 |
|
No preferred collaterals and counter-guarantees |
|
|
|
3,795,318 |
|
3,759,608 |
|
|
|
|
|
|
|
|
High risk |
|
|
|
2,717,678 |
|
4,678,724 |
|
Preferred collaterals and counter-guarantees "A" |
|
|
|
- |
|
78 |
|
Preferred collaterals and counter-guarantees "B" |
|
|
|
138,700 |
|
167,627 |
|
No preferred collaterals and counter-guarantees |
|
|
|
2,578,978 |
|
4,511,019 |
|
|
|
|
|
|
|
|
Uncollectible |
|
|
|
387,885 |
|
650,167 |
|
Preferred collaterals and counter-guarantees "A" |
|
|
|
4,302 |
|
5,004 |
|
Preferred collaterals and counter-guarantees "B" |
|
|
|
70,754 |
|
100,122 |
|
No preferred collaterals and counter-guarantees |
|
|
|
312,829 |
|
545,041 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
|
|
476,442,358 |
|
521,849,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GRAND TOTAL |
|
|
|
724,440,619 |
|
741,160,249 |
|
-188- |
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT C |
|
|
|
|
|
|
|
|
|
|
|
|
CONCENTRATION OF LOANS AND OTHER FINANCING |
AS OF DECEMBER 3, 2022 AND 2021 |
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
|
|
|
% over |
|
|
|
% over |
|
Number of customers |
|
|
|
Debt |
|
total |
|
Debt |
|
total |
|
|
|
|
|
balance |
|
portfolio |
|
balance |
|
portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10 largest customers |
|
|
|
61,158,718 |
|
8.44% |
|
64,015,803 |
|
8.64% |
|
50 following largest customers |
|
86,903,351 |
|
12.00% |
|
78,559,917 |
|
10.60% |
|
100 following largest customers |
|
48,401,276 |
|
6.68% |
|
43,238,731 |
|
5.83% |
|
All other customers |
|
|
|
527,977,274 |
|
72.88% |
|
555,345,798 |
|
74.93% |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
|
|
724,440,619 |
|
100.00% |
|
741,160,249 |
|
100.00% |
|
-189- |
|
|
|
|
|
|
|
|
|
|
EXHIBIT D |
BREAKDOWN BY TERM OF LOANS AND OTHER FINANCING |
AS OF DECEMBER 31, 2022 |
(stated in thousands of pesos in constant currency - Note 2.1.5 to the consolidated financial statements) (1) |
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Terms remaining to maturity |
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio |
1 |
3 |
6 |
12 |
24 |
more than |
|
|
ITEM |
due |
month |
months |
months |
months |
months |
24 |
TOTAL |
|
|
|
|
|
|
|
|
months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-financial government sector |
- |
1,399 |
- |
- |
- |
- |
- |
1,399 |
|
BCRA |
- |
9,034 |
- |
- |
- |
- |
- |
9,034 |
|
Financial sector |
- |
7,042,901 |
5,140,657 |
2,441,849 |
1,834,377 |
6,228,373 |
1,812,924 |
24,501,081 |
|
Non-financial private sector and |
|
|
|
|
|
|
|
|
|
residents abroad |
6,564,490 |
361,346,309 |
93,288,065 |
77,898,513 |
66,574,212 |
67,478,240 |
133,405,844 |
806,555,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
6,564,490 |
368,399,643 |
98,428,722 |
80,340,362 |
68,408,589 |
73,706,613 |
135,218,768 |
831,067,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2021 |
(stated in thousands of pesos in constant currency - Note 2.1.5 to the consolidated financial statements) (1) |
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Terms remaining to maturity |
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio |
1 |
3 |
6 |
12 |
24 |
more than |
|
|
ITEM |
due |
month |
months |
months |
months |
months |
24 |
TOTAL |
|
|
|
|
|
|
|
|
months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-financial government sector |
- |
1,441 |
- |
- |
- |
- |
- |
1,441 |
|
Financial sector |
- |
6,062,787 |
7,119,542 |
3,332,610 |
6,323,076 |
3,125,210 |
4,898,719 |
30,861,944 |
|
Non-financial private sector and |
|
|
|
|
|
|
|
|
|
residents abroad |
11,818,440 |
350,022,699 |
85,744,913 |
78,143,814 |
77,664,823 |
63,959,940 |
115,951,160 |
783,305,789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,818,440 |
356,086,927 |
92,864,455 |
81,476,424 |
83,987,899 |
67,085,150 |
120,849,879 |
814,169,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) These balances are total contractual flows and, therefore, include principal, accrued and to be accrued interest and charges. |
|
-190- |
|
EXHIBIT E |
BREAKDOWN OF INVESTMENTS
IN OTHER COMPANIES |
AS OF DECEMBER 31, 2022
AND 2021 |
(stated in thpusand of pesos constant
currenct - Note 2.1.5. to the consolidated financial statements) |
(Translation of Financial statements originally
issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuer information |
Item |
|
Shares |
|
|
|
|
|
Data of latest financial statements |
Identification |
Description |
|
|
Face |
Votes |
|
|
|
|
|
Principal |
Fiscal |
Capital |
Equity |
Income/(loss) |
|
|
|
Class |
value |
per |
Number |
Amount |
|
business |
period/year |
|
|
for the |
|
|
|
|
per unit |
share |
|
12.31.22 |
|
12.31.21 |
|
|
end date |
|
|
period/year |
|
IN FINANCIAL INSTITUTIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30682419578 |
Volkswagen Financial Services Cía. Financiera S.A. |
Common’ |
1$ |
1 |
457,470,000 |
3,449,976 |
|
4,081,680 |
|
Financing |
12.31.2022 |
897,000 |
6,764,661 |
(1,257,405) |
30707847367 |
PSA Finance Arg. Cía. Financiera S.A. |
|
Common |
1000$ |
1 |
26,089 |
2,076,720 |
|
2,291,495 |
|
Financing |
12.31.2022 |
52,178 |
4,153,441 |
(486,958) |
|
|
|
Subtotal Subsidiaries |
|
|
|
5,526,696 |
|
6,373,175 |
|
|
|
|
|
|
|
Associates and Joint Ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33707124909 |
Rombo Cía. Financiera S.A. |
|
Common |
1000$ |
1 |
24,000 |
744,208 |
|
1,539,529 |
|
Financing |
12.31.2022 |
60,000 |
1,860,520 |
(1,919,588) |
|
|
|
Subtotal Associates and
Joint Ventures |
|
|
744,208 |
|
1,539,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total in Financial Institutions |
|
|
|
6,270,904 |
|
7,912,704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IN SUPPLEMENTARY SERVICE COMPANIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30663323926 |
Consolidar Administradora de Fondos de Jubilaciones y
Pensiones S.A.(under liquidation proceedings) |
|
Common |
1$ |
1 |
83,926,233 |
13,858 |
|
38,412 |
|
Brokerage Retirement and Pension Funds |
12.31.2022 |
115,739 |
25,715 |
(14,077) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30548590163 |
BBVA Asset Management Argentina S.A. Sociedad Gerente de Fondos Comunes
de Inversión |
|
Common |
1$ |
1 |
242,524 |
3,699,338 |
|
3,441,080 |
|
Mutual Fund Manager |
12.31.2022 |
243 |
3,699,338 |
2,796,645 |
|
|
|
Subtotal Subsidiaries |
|
|
|
3,713,196 |
|
3,479,492 |
|
|
|
|
|
|
|
Associates and Joint Ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30690783521 |
Interbanking S.A |
|
Common |
1$ |
1 |
149,556 |
823,993 |
|
623,016 |
|
Electronic and IT services for financial markets |
12.31.2022 |
1,346 |
9,589,750 |
4,252,359 |
|
|
|
|
|
|
|
823,993 |
|
623,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total in Supplementary Services
Companies |
|
|
4,537,189 |
|
4,102,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IN OTHER COMPANIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates and Joint Ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30500064230 |
BBVA Seguros Argentina S.A. |
|
Common |
1$ |
1 |
1,301,847 |
1,197,152 |
|
1,325,212 |
|
Insurance |
12.31.2022 |
10,652 |
9,759,151 |
319,921 |
30716829436 |
Play Digital S.A. |
|
Common |
1$ |
1 |
231,276,030 |
486,571 |
|
222,162 |
|
Electronic Payment Services |
09.30.2022 |
2,152,921 |
4,544,342 |
(3,372,742) |
30717168190 |
Openpay Argentina S.A. |
|
Common |
1$ |
1 |
144,883,320 |
215,501 |
|
285,733 |
|
Electronic Payment Services |
12.31.2022 |
1,158,140 |
1,717,658 |
(575,662) |
|
|
|
Subtotal Associated and
Joint Ventures |
|
|
1,899,224 |
|
1,833,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total in other Companies |
|
|
|
1,899,224 |
|
1,833,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IN OTHER COMPANIES |
|
|
|
12,707,317 |
|
13,848,319 |
|
|
|
|
|
|
|
-191- |
|
EXHIBIT F |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROPERY AND EQUIPMENT |
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2022 |
(stated in thousands of pesos constant
currency - Note 2.1.5.to the consolidated financia statements) |
(Translation of Financial statements originally
issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment |
|
Depreciation |
|
|
|
Original |
|
Total |
|
|
|
|
|
|
|
|
|
|
ITEM |
Value |
|
estimated |
|
Transfer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residual value |
|
at the beginning |
|
useful life |
|
|
|
Additions |
|
Derecognition |
|
Loss |
|
Accumulated |
|
Transfer |
|
Derecognition |
|
For the year |
|
At year-end |
|
as of 12.31.22 |
|
of the year |
|
in years |
|
|
|
|
|
|
|
|
|
as of 12.31.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate |
80,690,323 |
|
50 |
|
(3,602,455) |
|
4,262,639 |
|
218,813 |
|
703,761 |
|
8,281,040 |
|
(273,672) |
|
218,814 |
|
1,828,818 |
|
9,617,372 |
|
70,810,561 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Furniture and facilities |
24,590,837 |
|
10 |
|
- |
|
1,697,203 |
|
731,611 |
|
- |
|
10,993,499 |
|
|
|
731,611 |
|
2,560,497 |
|
12,822,385 |
|
12,734,044 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Machinery and equipment |
10,007,468 |
|
5 |
|
- |
|
1,858,809 |
|
5,069,861 |
|
- |
|
5,940,453 |
|
- |
|
5,069,863 |
|
2,811,908 |
|
3,682,498 |
|
3,113,918 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicles |
494,566 |
|
5 |
|
- |
|
145,787 |
|
11,604 |
|
- |
|
333,626 |
|
- |
|
11,604 |
|
64,153 |
|
386,175 |
|
242,574 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Right of use of leased property |
12,782,185 |
|
10 |
|
- |
|
1,747,180 |
|
787,550 |
|
- |
|
6,095,711 |
|
- |
|
181,254 |
|
1,979,261 |
|
7,893,718 |
|
5,848,097 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction in progress |
2,185,255 |
|
- |
|
- |
|
1,084,893 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
3,270,148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Property and Equipment |
130,750,634 |
|
|
|
(3,602,455) |
|
10,796,511 |
|
6,819,439 |
|
703,761 |
|
31,644,329 |
|
(273,672) |
|
6,213,146 |
|
9,244,637 |
|
34,402,148 |
|
96,019,342 |
INVESTMENT PROPERTY |
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2022 |
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ITEM |
|
|
|
|
|
|
|
|
Depreciation |
|
Original |
|
Total |
|
|
|
|
|
|
Value |
|
estimated |
|
Transfer |
|
|
|
|
|
|
|
|
|
|
Residual value |
at the beginning |
|
useful life |
|
|
|
Additions |
|
Accumulated |
|
Transfer |
|
For the year |
|
At year-end |
as of 12.31.22 |
of the year |
|
in years |
|
|
|
|
|
as of 12.31.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased property |
5,493,993 |
|
50 |
|
3,602,455 |
|
11,257,430 |
|
426,558 |
|
273,672 |
|
293,151 |
|
993,381 |
19,360,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other investment property |
446,411 |
|
10 |
|
- |
|
- |
|
59,724 |
|
- |
|
9,664 |
|
69,388 |
377,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
investment property |
5,940,404 |
|
|
|
3,602,455 |
|
11,257,430 |
|
486,282 |
|
273,672 |
|
302,815 |
|
1,062,769 |
19,737,520 |
|
-192- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT G |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTANGIBLE ASSETS |
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2022 |
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ITEM |
|
|
|
|
|
|
|
|
|
Amortization |
|
|
Original |
|
Total |
|
|
|
|
|
|
|
|
value at the |
|
estimated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residual value |
beginning |
|
useful life |
|
Additions |
|
Derecognitions |
|
|
Accumulated |
|
Derecognitions |
|
For the year |
|
At yerar-end |
|
as of 12.31.22 |
of the year |
|
in years |
|
|
|
|
|
|
as of 12.31.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Licenses - Software |
8,137,897 |
|
5 |
|
5,533,356 |
|
2,636,144 |
|
|
1,033,742 |
|
174,430 |
|
625,324 |
|
1,484,636 |
|
9,550,473 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Intangible Assets |
8,137,897 |
|
|
|
5,533,356 |
|
2,636,144 |
|
|
1,033,742 |
|
174,430 |
|
625,324 |
|
1,484,636 |
|
9,550,473 |
|
-193- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT H |
|
|
|
|
|
|
|
|
DEPOSITS CONCENTRATION |
AS OF DECEMBER 31, 2022 AND 2021 |
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.31.22 |
|
12.31.21 |
|
|
|
|
% over |
|
|
% over |
Number of customers |
|
Debt |
total |
|
Debt |
total |
|
|
|
balance |
portfolio |
|
balance |
portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10 largest customers |
|
123,103,992 |
9.41% |
|
147,859,331 |
10.73% |
|
|
|
|
|
|
|
|
|
50 following largest customers |
|
146,884,732 |
11.23% |
|
151,602,717 |
11.01% |
|
|
|
|
|
|
|
|
|
100 following largest customers |
|
54,389,998 |
4.16% |
|
66,893,598 |
4.86% |
|
|
|
|
|
|
|
|
|
All other customers |
|
983,689,657 |
75.20% |
|
1,011,188,647 |
73.40% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
1,308,068,379 |
100.00% |
|
1,377,544,293 |
100.00% |
|
-194- |
|
|
|
|
|
|
|
|
|
EXHIBIT I |
BREAKDOWN OF FINANCIAL LIABILITIES BY REMAINING TERMS |
AS OF DECEMBER 31, 2022 |
|
(stated in thousands of pesos constant currency - Note 2.1.5. to the consolidated financial stetements) (1) |
|
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Terms remaining to maturity |
|
|
|
|
|
|
|
|
|
|
|
1 |
3 |
6 |
12 |
24 |
more than |
|
|
ITEMS |
month |
months |
months |
months |
months |
24 months |
TOTAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
1,126,820,881 |
103,175,469 |
103,572,824 |
1,287,011 |
77,673 |
- |
1,334,933,858 |
|
Non-financial government sector |
9,602,123 |
134,977 |
- |
- |
- |
- |
9,737,100 |
|
Financial sector |
608,498 |
- |
- |
- |
- |
- |
608,498 |
|
Non-financial private sector and residents abroad |
1,116,610,260 |
103,040,492 |
103,572,824 |
1,287,011 |
77,673 |
- |
1,324,588,260 |
|
Derivative instruments |
334,340 |
- |
- |
- |
- |
- |
334,340 |
|
Other financial liabilities |
116,875,063 |
279,657 |
372,001 |
593,608 |
1,043,487 |
4,869,365 |
124,033,181 |
|
Financing received from the BCRA and other financial institutions |
2,573,570 |
245,063 |
219,611 |
- |
- |
- |
3,038,244 |
|
|
|
|
|
|
|
|
|
|
TOTAL |
1,246,603,854 |
103,700,189 |
104,164,436 |
1,880,619 |
1,121,160 |
4,869,365 |
1,462,339,623 |
|
|
|
|
|
|
|
|
|
|
(1) These balances are total contractual cash flows and, therefore, include principal, accrued and to be accrued interest and charges. |
|
|
BREAKDOWN OF FINANCIAL LIABILITIES BY REMAINING TERMS |
AS OF DECEMBER 31, 2021 |
|
(stated in thousands of pesos constant currency - Note 2.1.5. to the consolidated financial stetements) (1) |
|
(Translation of Financial statements originally issued in Spanish - See Note 43) |
|
|
|
|
|
|
|
|
|
|
|
Terms remaining to maturity |
|
|
|
|
|
|
|
|
|
|
|
1 |
3 |
6 |
12 |
24 |
more than |
|
|
ITEMS |
month |
months |
months |
months |
months |
24 months |
TOTAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
1,230,909,655 |
67,845,663 |
105,614,557 |
883,562 |
48,235 |
879 |
1,405,302,551 |
|
Non-financial government sector |
25,902,807 |
107,984 |
- |
- |
- |
- |
26,010,791 |
|
Financial sector |
737,083 |
- |
- |
- |
- |
- |
737,083 |
|
Non-financial private sector and residents abroad |
1,204,269,765 |
67,737,679 |
105,614,557 |
883,562 |
48,235 |
879 |
1,378,554,677 |
|
Derivative instruments |
612,069 |
- |
- |
- |
- |
- |
612,069 |
|
Other financial liabilities |
117,918,574 |
466,064 |
629,425 |
1,134,343 |
1,670,390 |
6,728,440 |
128,547,236 |
|
Financing received from the BCRA and other financial institutions |
3,178,649 |
- |
- |
- |
- |
- |
3,178,649 |
|
|
|
|
|
|
|
|
|
|
TOTAL |
1,352,618,947 |
68,311,727 |
106,243,982 |
2,017,905 |
1,718,625 |
6,729,319 |
1,537,640,505 |
|
|
|
|
|
|
|
|
|
|
(1) These balances are total contractual cash flows and, therefore, include principal, accrued and to be accrued interest and charges. |
|
-195- |
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT J |
|
|
|
|
|
|
|
|
|
|
|
|
PROVISIONS |
AS OF DECEMBER 31, 2022 |
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decreases |
|
|
|
|
|
Accounts |
Balances |
|
|
|
|
|
|
Monetary gain (loss) generated by provisions |
|
Balances |
|
|
at the beginning |
Increases |
|
Reversals |
|
Uses |
|
|
as of 12.31.22 |
|
|
of the year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCLUDED IN LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Provisions for contingent commitments |
1,662,857 |
2,044,813 |
(1)(4) |
- |
|
- |
|
(1,013,472) |
|
2,694,198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
- For administrative, disciplinary and criminal penalties |
9,740 |
- |
|
- |
|
- |
|
(4,740) |
|
5,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
- Provisions for reorganization |
2,616,915 |
2,373,713 |
(3) |
227,853 |
|
3,703,183 |
|
(1,059,592) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
- Provisions for termination plans |
512,723 |
224,244 |
|
- |
|
- |
|
(282,950) |
|
454,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
- Other |
5,960,856 |
3,742,422 |
(2) |
- |
|
839,853 |
|
(3,491,132) |
|
5,372,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL PROVISIONS |
10,763,091 |
8,385,192 |
|
227,853 |
|
4,543,036 |
|
(5,851,886) |
|
8,525,508 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Set up in compliance with the provisions of Comunication "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 2,664 for exchange differences in foreign currency for contingent commitments. |
|
|
|
-196- |
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT J |
|
|
|
|
|
|
|
|
|
|
|
|
PROVISIONS |
AS OF DECEMBER 31, 2021 |
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decreases |
|
|
|
|
|
Accounts |
Balances |
|
|
|
|
|
|
Monetary gain (loss) generated by provisions |
|
Balances |
|
|
at the beginning |
Increases |
|
Reversals |
|
Uses |
|
|
as of 12.31.21 |
|
|
of the year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCLUDED IN LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Provisions for contingent commitments |
4,012,231 |
1,382,454 |
(1)(5) |
2,344,672 |
(1) |
- |
|
(1,387,156) |
|
1,662,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
- For administrative, disciplinary and criminal penalties |
14,701 |
- |
|
- |
|
- |
|
(4,961) |
|
9,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
- Provisions for reorganization |
5,966,220 |
4,411,298 |
(4) |
576,486 |
|
5,648,848 |
|
(1,535,269) |
|
2,616,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
- Provisions for termination plans |
417,356 |
252,580 |
(2) |
- |
|
- |
|
(157,213) |
|
512,723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
- Other |
23,155,679 |
2,747,874 |
(3) |
13,084,114 |
(6) |
1,196,049 |
|
(5,662,534) |
|
5,960,856 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL PROVISIONS |
33,566,187 |
8,794,206 |
|
16,005,272 |
|
6,844,897 |
|
(8,747,133) |
|
10,763,091 |
(1) |
Set up in compliance with the provisions of Comunication "A" 6868 and supplementary regulations of the BCRA. |
(2) |
Set up to cover private healthcare services. |
|
(3) |
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. |
|
|
(4) |
See Note 23 to the Consolidated Financial Statements |
|
(5) |
It includes an increase of 28,268 for exchange differences in foreign currency for contingent commitments. |
|
|
|
|
(6) |
It includes 13,084,114 as tax provision reversals (see Note11.c) to the consolidated financial statements) recorded under Income Tax. |
|
|
|
-197- |
|
EXHIBIT K |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL STRUCTURE |
AS OF DECEMBER 31, 2022 |
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHARES |
|
|
SHARE CAPITAL |
|
|
|
|
|
|
Issued |
|
|
|
|
Class |
Number |
Face |
Votes |
|
Outstanding |
Treasury |
|
Paid-in |
|
|
|
Value |
per |
|
|
|
|
|
|
|
|
per share |
share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON |
612,710,079 |
1 |
1 |
|
612,710 |
- |
|
612,710 |
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Registered with the Public Register of Commerce. |
|
|
|
|
|
|
|
-198- |
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT L |
|
|
|
|
|
|
|
|
|
|
BALANCES IN FOREIGN CURRENCY |
AS OF DECEMBER 31, 2022 AND 2021 |
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCOUNTS |
|
TOTAL |
AS OF 12.31.22 (per currency) |
|
TOTAL |
|
|
|
AS OF |
|
|
|
|
|
AS OF |
ASSETS |
|
|
12.31.22 |
Dollar |
Euro |
Real |
Other |
|
12.31.21 |
|
|
|
|
|
|
|
|
|
|
Cash and deposits in banks |
|
|
248,413,103 |
241,650,711 |
6,289,801 |
34,874 |
437,717 |
|
291,819,728 |
Debt securities at fair value through profit or loss |
|
|
3,520,000 |
3,520,000 |
- |
- |
- |
|
- |
Other financial assets |
|
|
8,451,050 |
8,446,480 |
4,570 |
- |
- |
|
5,616,670 |
Loans and other financing |
|
|
38,533,754 |
38,396,582 |
137,172 |
- |
- |
|
37,076,763 |
Non-financial government sector |
|
|
47 |
47 |
- |
- |
- |
|
25 |
Other financial institutions |
|
|
651 |
651 |
- |
- |
- |
|
327,917 |
Non-financial private sector and residents abroad |
|
|
38,533,056 |
38,395,884 |
137,172 |
- |
- |
|
36,748,821 |
Other debt securities |
|
|
5,466,376 |
5,466,376 |
- |
- |
- |
|
4,185,661 |
Financial assets pledged as collateral |
|
|
10,771,263 |
10,771,263 |
- |
- |
- |
|
10,955,980 |
Investments in Equity Instruments |
|
|
60,251 |
60,251 |
- |
- |
- |
|
69,822 |
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
|
315,215,797 |
308,311,663 |
6,431,543 |
34,874 |
437,717 |
|
349,724,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
AS OF 12.31.22 (per currency) |
|
TOTAL |
|
|
|
AS OF |
|
|
|
|
|
AS OF |
LIABILITIES |
|
|
12.31.22 |
Dollar |
Euro |
Real |
Other |
|
12.31.21 |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
286,085,755 |
281,291,500 |
4,794,255 |
- |
- |
|
323,896,886 |
Non-financial government sector |
|
|
6,429,453 |
6,401,954 |
27,499 |
- |
- |
|
6,257,327 |
Financial sector |
|
|
86,240 |
84,772 |
1,468 |
- |
- |
|
68,008 |
Non-financial private sector and residents abroad |
|
|
279,570,062 |
274,804,774 |
4,765,288 |
- |
- |
|
317,571,551 |
Other financial liabilities |
|
|
21,896,248 |
20,919,414 |
855,481 |
- |
121,353 |
|
20,014,128 |
Financing received from the BCRA and other financial institutions |
|
|
1,109,729 |
1,023,014 |
86,715 |
- |
- |
|
991,012 |
Other non-financial liabilities |
|
|
11,265,535 |
5,706,272 |
5,559,263 |
- |
- |
|
8,035,342 |
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
|
320,357,267 |
308,940,200 |
11,295,714 |
- |
121,353 |
|
352,937,368 |
|
-199- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT N |
|
|
|
|
|
|
|
FINANCIAL ASSISTANCE TO RELATED PARTIES |
AS OF DECEMBER 31, 2022 AND 2021 |
|
(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 43) |
|
|
|
|
|
|
|
|
|
|
Situation |
|
|
|
|
|
|
|
|
|
|
Item |
|
Normal |
|
TOTAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.31.22 |
12.31.21 |
|
|
|
|
|
|
|
1. Loans and other financing |
|
15,787,236 |
|
15,787,236 |
17,988,642 |
|
|
|
|
|
|
|
- Overdrafts |
|
25,395 |
|
25,395 |
4,950 |
With preferred guarantees and counter guarantees "A" |
|
14,204 |
|
14,204 |
- |
No preferred guarantees or counter guarantees |
|
11,191 |
|
11,191 |
4,950 |
|
|
|
|
|
|
|
- Mortgage and pledge loans |
|
23,648 |
|
23,648 |
216 |
With preferred guarantees and counter guarantees "B" |
|
23,648 |
|
23,648 |
216 |
|
|
|
|
|
|
|
- Consumer loans |
|
11,023 |
|
11,023 |
6,058 |
No preferred guarantees or counter guarantees |
|
11,023 |
|
11,023 |
6,058 |
|
|
|
|
|
|
|
- Credit cards |
|
72,113 |
|
72,113 |
82,255 |
No preferred guarantees or counter guarantees |
|
72,113 |
|
72,113 |
82,255 |
|
|
|
|
|
|
|
- Other |
|
15,655,057 |
|
15,655,057 |
17,895,163 |
No preferred guarantees or counter guarantees |
|
15,655,057 |
|
15,655,057 |
17,895,163 |
|
|
|
|
|
|
|
2. Debt securities |
|
- |
|
- |
1,519 |
|
|
|
|
|
|
|
4. Contingent commitments |
|
290,228 |
|
290,228 |
2,651,132 |
|
|
|
|
|
|
|
|
TOTAL |
|
16,077,464 |
|
16,077,464 |
20,641,293 |
|
ALLOWANCES |
|
119,627 |
|
119,627 |
179,901 |
|
-200- |
|
|
EXHIBIT
O |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DERIVATIVES |
AS
OF DECEMBER 31, 2022 |
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Type of Contract |
|
Purpose of
the Transactions |
|
Underlying
Assets |
|
Type of Settlement |
|
Scope of Negotiation or
Counterparty |
|
Weighted
Average Term Originally Agreed |
|
Residual
Weighted Average Term |
|
Weighted
Average Term of Differences Settlement |
|
Amount |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SWAPS |
|
Financial transactions own account |
|
Other |
|
Upon maturity of differences |
|
OTC - Residents in the country - Financial Sector |
|
12 |
|
8 |
|
31 |
|
1,500,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REPO TRANSACTIONS |
|
Financial transactions own account |
|
Other |
|
Upon maturity of differences |
|
OTC - Residents in the country - Financial
Sector |
|
1 |
|
1 |
|
3 |
|
58,592,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FUTURES |
|
Financial transactions own account |
|
Foreign currency |
|
Daily differences |
|
ROFEX |
|
3 |
|
2 |
|
1 |
|
317,939,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FUTURES |
|
Financial transactions own account |
|
Foreign currency |
|
Upon maturity of differences |
|
OTC - Residents abroad |
|
2 |
|
1 |
|
57 |
|
1,932,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FUTURES |
|
Financial transactions own account |
|
Foreign currency |
|
Upon maturity of differences |
|
OTC - Residents in the country - Non-financial
Sector |
|
2 |
|
1 |
|
67 |
|
150,567,488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPTIONS |
|
Financial transactions own account |
|
Other |
|
Upon maturity of differences |
|
OTC - Residents abroad |
|
9 |
|
5 |
|
263 |
|
4,734,182 |
DERIVATIVES |
AS
OF DECEMBER 31, 2021 |
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Type of Contract |
|
Purpose of
the Transactions |
|
Underlying
Assets |
|
Type of Settlement |
|
Scope of
Negotiation or Counterparty |
|
Weighted
Average Term Originally Agreed |
|
Residual
Weighted Average Term |
|
Weighted
Average Term of Differences Settlement |
|
Amount |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SWAPS |
|
Financial transactions own account |
|
Other |
|
Upon maturity of differences |
|
OTC - Residents in the country - Financial Sector |
|
11 |
|
2 |
|
19 |
|
350,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REPO TRANSACTIONS |
|
Financial transactions own account |
|
Other |
|
Upon maturity of differences |
|
OTC - Residents in the country - Financial
Sector |
|
1 |
|
1 |
|
7 |
|
299,260,887 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FUTURES |
|
Financial transactions own account |
|
Foreign currency |
|
Daily differences |
|
ROFEX |
|
4 |
|
2 |
|
1 |
|
258,534,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FUTURES |
|
Financial transactions own account |
|
Foreign currency |
|
Upon maturity of differences |
|
OTC - Residents in the country - Non-financial
Sector |
|
3 |
|
2 |
|
94 |
|
244,835,379 |
|
-201- |
|
EXHIBIT P |
|
CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES |
AS OF DECEMBER 31, 2022 |
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
117,455,917 |
- |
- |
- |
- |
- |
Financial institutions and correspondents |
178,415,422 |
- |
- |
- |
- |
- |
Debt securities at fair value through profit or loss |
- |
- |
25,519,962 |
3,917,279 |
21,602,683 |
- |
Derivative instruments |
- |
- |
2,268,201 |
- |
2,268,201 |
- |
Repo transactions |
|
|
|
|
|
|
Argentine Central Bank (BCRA) |
52,564,802 |
- |
- |
- |
- |
- |
Other financial assets |
28,385,031 |
- |
- |
- |
- |
- |
Loans and other financing |
|
|
|
|
|
|
Non-financial government sector |
1,399 |
- |
- |
- |
- |
- |
BCRA |
9,034 |
- |
- |
- |
- |
- |
Other financial institutions |
17,999,645 |
- |
- |
- |
- |
- |
Non-financial private sector and residents abroad |
684,775,457 |
- |
- |
- |
- |
- |
Overdrafts |
62,947,418 |
- |
- |
- |
- |
- |
Instruments |
117,688,860 |
- |
- |
- |
- |
- |
Mortgage loans |
38,509,996 |
- |
- |
- |
- |
- |
Pledge loans |
8,796,138 |
- |
- |
- |
- |
- |
Consumer loans |
71,109,615 |
- |
- |
- |
- |
- |
Credit cards |
274,537,256 |
- |
- |
- |
- |
- |
Finance leases |
5,563,679 |
- |
- |
- |
- |
- |
Other |
105,622,495 |
- |
- |
- |
- |
- |
Other debt securities |
44,527,097 |
600,515,694 |
- |
52,601,929 |
547,263,466 |
650,299 |
Financial assets pledged as collateral |
29,493,073 |
16,699,438 |
- |
16,187,316 |
512,122 |
- |
Investments in equity instruments |
- |
60,468 |
877,879 |
877,879 |
60,468 |
- |
TOTAL FINANCIAL ASSETS |
1,153,626,877 |
617,275,600 |
28,666,042 |
73,584,403 |
571,706,940 |
650,299 |
|
-202- |
|
|
|
|
|
|
|
EXHIBIT P |
|
|
|
|
|
|
(Continued) |
|
|
|
|
|
|
|
CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES |
AS OF DECEMBER 31, 2022 |
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
9,680,134 |
- |
- |
- |
- |
- |
Financial sector |
608,498 |
- |
- |
- |
- |
- |
Non-financial private sector and residents abroad |
|
|
|
|
|
|
Checking accounts |
253,478,640 |
- |
- |
- |
- |
- |
Savings accounts |
499,116,331 |
- |
- |
- |
- |
- |
Time deposits and investments |
534,605,058 |
- |
- |
- |
- |
- |
Other |
10,579,718 |
- |
- |
- |
- |
- |
Derivative instruments |
- |
- |
334,340 |
- |
334,340 |
- |
Repo transactions |
|
|
|
|
|
|
Other financial liabilities |
116,709,627 |
- |
- |
- |
- |
- |
Financing received from the BCRA and other financial institutions |
3,037,598 |
- |
- |
- |
- |
- |
TOTAL FINANCIAL LIABILITIES |
1,427,815,604 |
- |
334,340 |
- |
334,340 |
- |
|
-203- |
|
|
|
|
|
|
|
EXHIBIT P |
|
CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES |
AS OF DECEMBER 31, 2021 |
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
144,641,261 |
- |
- |
- |
- |
- |
Financial institutions and correspondents |
280,084,574 |
- |
- |
- |
- |
- |
Debt securities at fair value through profit or loss |
- |
- |
2,721,113 |
2,719,594 |
1,519 |
- |
Derivative instruments |
- |
- |
5,486,313 |
- |
5,486,313 |
- |
Repo transactions |
|
|
|
|
|
|
Argentine Central Bank (BCRA) |
267,934,977 |
- |
- |
- |
- |
- |
Other financial assets |
24,798,818 |
- |
- |
- |
- |
- |
Loans and other financing |
|
|
|
|
|
|
Non-financial government sector |
1,441 |
- |
- |
- |
- |
- |
Other financial institutions |
24,086,229 |
- |
- |
- |
- |
- |
Non-financial private sector and residents abroad |
704,217,341 |
- |
- |
- |
- |
- |
Overdrafts |
43,883,358 |
- |
- |
- |
- |
- |
Instruments |
100,074,117 |
- |
- |
- |
- |
- |
Mortgage loans |
44,624,959 |
- |
- |
- |
- |
- |
Pledge loans |
9,478,923 |
- |
- |
- |
- |
- |
Consumer loans |
79,650,257 |
- |
- |
- |
- |
- |
Credit cards |
306,094,971 |
- |
- |
- |
- |
- |
Finance leases |
5,053,195 |
- |
- |
- |
- |
- |
Other |
115,357,561 |
- |
- |
- |
- |
- |
Other debt securities |
43,956,008 |
316,392,721 |
- |
98,430,498 |
215,933,999 |
2,028,225 |
Financial assets pledged as collateral |
30,516,071 |
8,988,656 |
- |
8,988,656 |
- |
- |
Investments in equity instruments |
- |
70,288 |
4,249,004 |
748,613 |
70,287 |
3,500,391 |
TOTAL FINANCIAL ASSETS |
1,520,236,720 |
325,451,665 |
12,456,430 |
110,887,361 |
221,492,118 |
5,528,616 |
|
-204- |
|
|
|
|
|
|
|
EXHIBIT P |
|
|
|
|
|
|
(Continued) |
|
|
|
|
|
|
|
CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES |
AS OF DECEMBER 31, 2021 |
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
25,857,759 |
- |
- |
- |
- |
- |
Financial sector |
737,083 |
- |
- |
- |
- |
- |
Non-financial private sector and residents abroad |
|
|
|
|
|
|
Checking accounts |
331,981,163 |
- |
- |
- |
- |
- |
Savings accounts |
555,623,684 |
- |
- |
- |
- |
- |
Time deposits and investments |
450,692,104 |
- |
- |
- |
- |
- |
Other |
12,652,500 |
- |
- |
- |
- |
- |
Derivative instruments |
- |
- |
612,069 |
- |
612,069 |
- |
Repo transactions |
|
|
|
|
|
|
Other financial liabilities |
118,135,028 |
- |
- |
- |
- |
- |
Financing received from the BCRA and other financial institutions |
3,177,150 |
- |
- |
- |
- |
- |
TOTAL FINANCIAL LIABILITIES |
1,498,856,471 |
- |
612,069 |
- |
612,069 |
- |
|
-205- |
|
|
|
EXHIBIT Q |
|
|
|
BREAKDOWN OF PROFIT OR LOSS |
AS OF DECEMBER 31, 2022 AND 2021 |
(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 43) |
|
|
|
Items |
Net Financial Income/(Expense) |
Statutory measurement |
12.31.22 |
12.31.21 |
Due to measurement of financial assets at fair value through profit or loss |
|
|
Income from government securities |
10,679,557 |
5,290,090 |
Income from private securities |
(7,402) |
(2,032,687) |
Income from financial derivative instruments |
|
|
Forward transactions |
1,492,046 |
6,309,957 |
Interest rate swaps |
101,095 |
94,492 |
Put options |
(34,657) |
(2,302,454) |
Income from other financial assets |
19,644 |
8,717 |
Income from loans and other financing |
|
|
To the financial sector |
21 |
- |
Income from sale or write-off of financial assets at fair value |
4,388,676 |
- |
Due to measurement of financial liabilities at fair value through profit or loss |
|
|
Income/(loss) from other financial assets |
(5,301) |
- |
TOTAL |
16,633,679 |
7,368,115 |
|
|
|
|
|
|
Interest and adjustments due to application of effective interest rate of financial assets measured at amortized cost |
Financial Income/(Expense) |
|
12.31.22 |
12.31.21 |
Interest income |
|
|
Cash and deposits in banks |
514,415 |
1,735,828 |
Government securities |
14,226,852 |
9,332,224 |
Loans and other financing |
319,216,766 |
222,478,401 |
To the financial sector |
8,010,605 |
7,168,723 |
To the non-financial private sector |
|
|
Overdrafts |
28,774,464 |
16,497,070 |
Instruments |
39,596,631 |
28,643,882 |
Mortgage loans |
3,042,462 |
3,353,342 |
Pledge loans |
2,761,950 |
3,102,131 |
Consumer loans |
32,075,984 |
28,325,500 |
Credit cards |
62,619,226 |
49,780,744 |
Finance leases |
1,595,491 |
1,578,533 |
Other |
140,739,953 |
84,028,476 |
Repo transactions |
31,858,523 |
73,245,986 |
Argentine Central Bank (BCRA) |
31,796,314 |
73,013,417 |
Other financial institutions |
62,209 |
232,569 |
TOTAL |
365,816,556 |
306,792,439 |
|
|
|
Interest expense |
|
|
Deposits |
(279,112,601) |
(168,938,909) |
Checking accounts |
(39,664,114) |
(26,886,481) |
Savings accounts |
(1,604,249) |
(1,016,781) |
Term deposits and investments |
(237,838,015) |
(141,027,327) |
Other |
(6,223) |
(8,320) |
Financing received from the BCRA and other financial institutions |
(534,184) |
(308,646) |
Repo transactions |
(26,871) |
(5,515) |
Other financial institutions |
(26,871) |
(5,515) |
Other financial liabilities |
(258,174) |
(811,872) |
TOTAL |
(279,931,830) |
(170,064,942) |
|
-206- |
|
|
|
|
|
EXHIBIT Q |
|
|
|
|
(Continued) |
|
|
|
|
|
BREAKDOWN OF PROFIT OR LOSS |
AS OF DECEMBER 31, 2022 AND 2021 |
(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 43) |
|
|
|
|
|
Interest and adjustments due to application of effective interest rate of financial assets at fair value through OCI |
|
Income for the year |
OCI |
12.31.22 |
12.31.21 |
12.31.22 |
12.31.21 |
Private debt securities |
662,812 |
305,251 |
118,722 |
57,004 |
Government debt securities |
242,226,980 |
94,781,955 |
(12,892,128) |
1,436,371 |
TOTAL |
242,889,792 |
95,087,206 |
(12,773,406) |
1,493,375 |
|
|
|
|
|
|
|
|
Commission income |
Income for the year |
12.31.22 |
12.31.21 |
Linked to obligations |
33,765,068 |
32,826,035 |
Linked to loans |
917,320 |
1,081,137 |
Linked to loan commitments and financial guarantees |
3,554 |
18,311 |
Linked to securities |
907,751 |
1,128,510 |
Linked to cards |
33,118,776 |
39,898,039 |
Linked to insurance |
3,521,043 |
3,840,993 |
Linked to foreign trade and exchange transactions |
3,521,768 |
4,008,489 |
TOTAL |
75,755,280 |
82,801,514 |
|
|
|
Commission expenses |
Income for the year |
12.31.22 |
12.31.21 |
Linked to transactions with securities |
(15,701) |
(23,315) |
Linked to foreign trade and exchange transactions |
(985,471) |
(993,322) |
Other |
(33,435,424) |
(39,704,590) |
TOTAL |
(34,436,596) |
(40,721,227) |
|
-207- |
|
|
|
|
|
|
|
|
|
EXHIBIT
R |
|
ADJUSTMENT
TO IMPAIRMENT LOSS - ALLOWANCES FOR LOAN LOSSES |
AS
OF DECEMBER 31, 2022 |
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
502,922
|
125,051
|
-
|
97,172
|
(308,669) |
|
416,476
|
|
|
|
|
|
|
|
|
|
Loans
and other financing |
|
26,205,243
|
3,707,136
|
2,927,662
|
972,592
|
(12,905,804) |
|
20,906,829
|
Other
financial institutions |
|
641,635
|
566,222
|
183,499
|
(2,690) |
(487,721) |
|
900,945
|
Non-financial
private sector and residents abroad |
25,563,608
|
3,140,914
|
2,744,163
|
975,282
|
(12,418,083) |
|
20,005,884
|
Overdrafts |
|
626,669
|
522,652
|
209,250
|
332,279
|
(648,392) |
|
1,042,458
|
Instruments |
|
1,170,687
|
185,772
|
(20,941) |
(16,044) |
(556,365) |
|
763,109
|
Mortgage
loans |
|
1,431,984
|
65,078
|
263,388
|
848,189
|
(893,517) |
|
1,715,122
|
Pledge
loans |
|
192,964
|
44,243
|
604
|
22,203
|
(111,508) |
|
148,506
|
Consumer
loans |
|
5,001,884
|
376,074
|
(17,040) |
1,354,402
|
(2,616,339) |
|
4,098,981
|
Credit
cards |
|
9,475,453
|
1,337,225
|
2,958,061
|
1,527,812
|
(5,202,819) |
|
10,095,732
|
Finance
leases |
|
183,043
|
33,174
|
8,239
|
62,798
|
(96,826) |
|
190,428
|
Other |
|
7,480,924
|
576,696
|
(657,398) |
(3,156,357) |
(2,292,317) |
|
1,951,548
|
|
|
|
|
|
|
|
|
|
Other
debt securities |
|
29,433
|
23,071
|
-
|
-
|
(20,417) |
|
32,087
|
|
|
|
|
|
|
|
|
|
Contingent
commitments |
|
1,662,857
|
1,373,183
|
638,080
|
33,550
|
(1,013,472) |
|
2,694,198
|
|
|
|
|
|
|
|
|
|
TOTAL
ALLOWANCES |
|
28,400,455
|
5,228,441
|
3,565,742
|
1,103,314
|
(14,248,362) |
|
24,049,590
|
|
-208- |
|
|
PROJECT FOR THE DISTRIBUTION OF EARNINGS |
FOR THE FISCAL YEAR ENDED |
DECEMBER 31, 2022 |
(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 43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETAINED EARNINGS (1) |
|
|
|
|
136,140,971 |
|
|
|
|
|
|
To Legal Reserve |
|
|
|
|
(11,765,158) |
|
|
|
|
|
|
SUBTOTAL 1 |
|
|
|
|
124,375,813 |
|
|
|
|
|
|
Other Comprehensive Income |
|
|
|
|
(12,882,424) |
Difference between measurement at amortized cost and at fair market value of government debt securities measured at amortized cost |
|
|
|
|
(57,025) |
|
|
|
|
|
|
|
|
|
|
|
|
SUBTOTAL 2 |
|
|
|
|
111,436,364 |
|
|
|
|
|
|
DISTRIBUTABLE BALANCE (2) (3) |
|
|
|
111,436,364 |
|
|
|
|
|
|
To cash dividends |
|
|
|
|
- |
|
|
|
|
|
|
To unappropriated retained earnings |
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) It includes Optional Reserve for future distributions of earnings in the amount of 77,315,183. |
|
|
|
|
|
|
|
|
(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 2022 until the next Annual and Extraordinary Shareholders' Meeting. |
The distribution of earnings is contingent up on the approval of the Annual and 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. |
|
-209- |
|
REPORTING SUMMARY 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 54 to the consolidated financial statements
These consolidated financial statements were prepared in accordance
with the financial reporting framework set forth by the BCRA (Communication “A” 6114 of the BCRA, as supplemented). Save for
the regulations set forth by the BCRA explained in the following paragraph, such framework is based on the International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board (IASB), and adopted by the Argentine Federation of Professional
Councils of Economic Sciences (FACPCE, as per its Spanish acronym). The aforementioned international standards include the IFRS, the International
Accounting Standards (IAS) and the interpretations developed by Interpretations Committee of International Financial Reporting Standards
(IFRIC) or the former Standards Interpretations Committee (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 and 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 above mentioned paragraph 5.5. “Impairment” been
applied in full, according to the global estimate made by the Entity, as of December 31, 2022 and 2021, its shareholders’ equity
would have been reduced by 4,482,561 and 3,723,823, respectively.
b) As of December 31, 2021, the Entity valued its remaining interest
in Prisma Medios de Pago SA (“Prisma”) following the guidelines set forth by applicable rules and considering a valuation
report as of December 31, 2020 issued by independent experts subject to the provisions of Memoranda No. 7/2019 and No. 8/2021 dated April
29, 2019 and May 22, 2021, respectively, received from the BCRA, which set forth specific provisions as regards the measurement of such
interest. Considering those provisions, the Entity has made adjustments to the fair value previously determined (see Note 12.1).
Additionally, the Bank recognized
an adjustment to previous years’ results, at the request of the BCRA. By means of Memorandum No. 8/2021 dated May 22, 2021, that
is, subsequent to the financial statements as of December 31, 2020, the Bank was required to adjust the fair value recognized on its equity
interest in Prisma Medios de Pago S.A. as of December 31, 2020.
For disclosure purposes only,
such adjustment had an impact on the items “Investments in Equity Instruments” by 4,209,490 (decrease) and “Unappropriated
retained earnings” by 2,946,642 (net decrease in deferred income tax) in the comparative Consolidated Statement of Financial Position
and in the comparative Consolidated Statement of Changes in Shareholders’ Equity as of December 31, 2021.
|
-210- |
|
Information not covered by the Auditors
Report on the review of the consolidated financial statements.
|
-211- |
|
In determining the valuation
of such equity interest, the Bank followed the guidelines set out under applicable standards, also considering a valuation report as of
December 31, 2020 issued by independent appraisers.
In March 2022, the shares
corresponding to the aforementioned interest were transferred 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) of previous years and
for the fiscal year ended December 31, 2022 shall have been changed. However, this situation does not generate differences as regards
the shareholders’ equity value as of December 31, 2022.
c) On May 29, 2017, the BCRA issued
Memorandum No. 6/2017 whereby the Entity was required to account for a provision in liabilities for the reassessment of income tax applying
the inflation adjustment for tax purposes. As described in Note 11, such provision was fully reversed as from June 30, 2021.
Except as provided in the preceding 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” 7411. In general, the BCRA
does not allow the early application of any IFRS, unless otherwise specified.
These financial statements were approved by Banco BBVA Argentina
S.A.’s Board of Directors on March 6, 2023.
In addition, the BCRA through Communications “A” 6323
and 6324 provided the guidelines for the preparation and presentation of financial statements of financial institutions for the fiscal
years starting on or after January 1, 2018, including the additional reporting requirements as well as the information to be presented
as 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,
2022 and 2021.
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, 2022, the Entity's total assets,
liabilities and shareholders' equity amounted to 1,958,836,856; 1,592,952,888; and 365,883,968; 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 3.7
million active customers as of December 31, 2022. That network includes 243 branches providing services to the retail segment and also
to small and medium sized-enterprises and organizations.
Information not covered by the Auditors
Report on the review of the consolidated financial statements.
|
-212- |
|
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
881 ATMs, 856 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 SA.
has 5,888 employees, including 93 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 loans portfolio net of allowance for loan losses totaled
$ 717,096,502 as of December 31, 2022, reflecting a 2.88% 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 10.59% in
the case of consumer loans and 10.31% in credit cards, compared with December 31, 2021.
Banco BBVA Argentina S.A.'s consolidated
market share in private-sector financing was 9.10% 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 Entity has managed
to maintain very good ratios. The non performing ratio (Financings non performing/total financing) was 1.13%, with a coverage level (total
allowances/non performing) of 242.23% as of December 31, 2022.
The exposure for securities as of December 31, 2022 totaled
$ 723,188,069, including repos.
In terms of liabilities, customers’
resources totaled $ 1,313,820,228, with a 4.78% decrease over the last twelve months.
Banco BBVA Argentina S.A. consolidated market share in
private deposits reached 6.64% at fiscal year-end, based on BCRA’s daily information (principal balance 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 57,934,371 as of December 31, 2022, representing a return on average shareholders' equity of 17.53%, a return on average assets of
2.97%, and a return on average liabilities of 3.53%.
Accumulated net interest income totaled 339,439,957, up
by 40.71% compared to December 2021. Such increase was driven by increased premiums for repurchase transactions with the financial sector
and for interest from local financial institutions.
Information not covered by the Auditors
Report on the review of the consolidated financial statements.
|
-213- |
|
Accumulated net commission income totaled 46,472,828 accounting
for a 1.39% increase compared to December 2021. This increase was due to an increase in commissions related to credits and obligations
and lower commissions related to transactions with securities.
Accumulated administrative expenses and personnel benefits
totaled 136,119,717, up by 9.62% vis-a-vis December 2021. This increase was due to a higher expense in representation
and travel, leases and advertising.
Outlook
Despite the less favorable global context and the local environment
signed by the difficulty of correcting current macroeconomic distortions and meeting the objectives established in the arrangements reached
in March with the International Monetary Fund, the economic activity has shown certain dynamism in 2022. Available evidence suggests,
according to BBVA Research, that GDP would have grown near 5.0% in 2022. Likewise, the global context, the high inflation (94.8% accumulated
as of December and, foreseeably, around the same levels in 2023), the financial volatility, the uncertainty about the evolution of the
economic policy and the limited margin for adopting new stimulus measures, support the expectations of a slight contraction of GDP in
2023.
The banking system is influenced by the high inflation
scenario. At the end of December 2022 both private credit and private deposits, grew 66% and 93%, respectively, comparative with December
2021 (source: BCRA siscen reporting regime as of December 31, 2022. Capital balances as of the last day of each period, in nominal terms).
Meanwhile, the total NPL ratio decreased to 3.0%, compared to 4.3% as of December 2021 (source: Banking Report, BCRA, latest available
data November 2022).
BBVA Argentina continues to actively monitor its businesses,
financial position, and results of operations, and believes it is competitively positioned to face the challenges posed by the prevailing
context. The Bank’s funding costs are low due to an adequate deposit mix, a strong capital and liquidity position, and an optimal
portfolio quality vis-a-vis the financial system.
Corporate responsibility is embedded in the Bank’s
business model, driving financial inclusion and education, and supporting scientific research and culture. BBVA Argentina operates with
uttermost integrity, long-term vision and best practices, and has a presence among the main sustainability indexes through BBVA Group.
Information not covered by the Auditors
Report on the review of the consolidated financial statements.
|
-214- |
|
The Bank's digital transformation is an inherent part
of the way the institution does business. Our service offering has evolved in such a way that at the end of December 2022, the penetration
of our digital customers reached 62%, remaining stable vis-a-vis the end of the previous year, while that of our mobile customers reached
55%, up from 53% a year ago. The response from our customers has been satisfactory, and we are convinced that this is the path to follow
in order to maintain and expand our competitive positioning in the financial system. In the quarter, the acquisition of new digital customers
over traditional ones was 70%.
The Bank’s goal for 2023 will be to maintain its current strength built all over
the years, within the framework of a decisive year for Argentina.
Information not covered by the Auditors
Report on the review of the consolidated financial statements.
|
-215- |
|
CONSOLIDATED BALANCE SHEET STRUCTURE |
COMPARATIVE WITH PREVIOUS FISCAL YEARS |
(stated in thousands of pesos in constant currency - Note 2.1.5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.31.22 |
|
12.31.21 |
|
12.31.20 |
|
12.31.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
1,958,836,856 |
|
2,006,747,334 |
|
2,022,790,428 |
|
1,807,700,871 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
1,592,952,888 |
|
1,689,990,471 |
|
1,717,726,963 |
|
1,504,058,684 |
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
360,480,705 |
|
310,510,876 |
|
298,776,731 |
|
297,327,844 |
|
|
|
|
|
|
|
|
|
|
Minority interest |
|
|
5,403,263 |
|
6,245,987 |
|
6,286,734 |
|
6,314,343 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities + Shareholders' Equity + Minority interest |
1,958,836,856 |
|
2,006,747,334 |
|
2,022,790,428 |
|
1,807,700,871 |
|
-216- |
|
CONSOLIDATED STATEMENT OF INCOME STRUCTURE |
COMPARATIVE WITH PREVIOUS FISCAL YEARS |
(stated in thousands of pesos in constant currency - Note 2.1.5) |
|
|
|
|
|
|
|
|
|
|
12.31.22 |
|
12.31.21 |
|
12.31.20 |
|
12.31.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
339,439,957 |
|
241,237,385 |
|
228,917,312 |
|
266,612,398 |
|
|
|
|
|
|
|
|
Net commission income |
46,742,828 |
|
46,102,643 |
|
35,988,360 |
|
32,737,406 |
|
|
|
|
|
|
|
|
Net income from measurement of financial instruments at fair value through profit or loss |
18,176,921 |
|
8,501,868 |
|
23,274,949 |
|
36,969,753 |
Net (loss) from write-down of assets at amortized cost and at fair value through OCI |
289,948 |
|
(238,226) |
|
(6,791,532) |
|
(242,132) |
Gold and Foreign currency quotation differences |
8,076,977 |
|
10,790,706 |
|
18,310,996 |
|
43,221,141 |
Other operating income |
21,162,193 |
|
15,761,823 |
|
18,457,610 |
|
51,785,619 |
Allowance for loan losses |
(19,480,425) |
|
(16,104,276) |
|
(29,196,192) |
|
(54,103,285) |
|
|
|
|
|
|
|
|
Net operating income |
414,408,399 |
|
306,051,923 |
|
288,961,503 |
|
376,980,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel benfits |
(67,977,448) |
|
(60,993,395) |
|
(59,742,547) |
|
(66,673,365) |
Administrative expenses |
(68,141,723) |
|
(63,175,953) |
|
(55,334,179) |
|
(56,017,047) |
Asset depreciation and impairment |
(10,973,223) |
|
(10,872,882) |
|
(11,954,953) |
|
(16,843,255) |
Other operating expenses |
(61,486,046) |
|
(52,007,167) |
|
(48,280,181) |
|
(87,976,837) |
|
|
|
|
|
|
|
|
Operating income |
205,829,959 |
|
119,002,526 |
|
113,649,643 |
|
149,470,396 |
|
|
|
|
|
|
|
|
Income/(loss) from associates and joint ventures |
(466,497) |
|
(81,528) |
|
802,335 |
|
(84,910) |
|
|
|
|
|
|
|
|
Loss from net monetary position |
(143,506,418) |
|
(77,853,422) |
|
(57,912,150) |
|
(62,086,901) |
|
|
|
|
|
|
|
|
Income before income tax from continuing activities |
61,857,044 |
|
41,067,576 |
|
56,539,828 |
|
87,298,585 |
|
|
|
|
|
|
|
|
Income tax from continuing activities |
(3,922,673) |
|
155,399 |
|
(24,109,180) |
|
(29,352,022) |
|
|
|
|
|
|
|
|
Net income from continuing activities |
57,934,371 |
|
41,222,975 |
|
32,430,648 |
|
57,946,563 |
|
|
|
|
|
|
|
|
Net income for the year |
57,934,371 |
|
41,222,975 |
|
32,430,648 |
|
57,946,563 |
|
-217- |
|
CONSOLIDATED CASH FLOW STRUCTURE |
COMPARATIVE WITH PREVIOUS FISCAL YEARS |
(stated in thousands of pesos in constant currency - Note 2.1.5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.31.22 |
|
12.31.21 |
|
12.31.20 |
|
12.31.19 |
|
|
|
|
|
|
|
|
|
Net cash generated by / (used in) operating activities |
|
110,475,964 |
|
227,347,138 |
|
(39,725,871) |
|
178,285,279 |
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
(27,152,872) |
|
(14,604,755) |
|
(6,989,981) |
|
(458,177) |
|
|
|
|
|
|
|
|
|
Net cash used in financing activities |
|
(5,921,216) |
|
(10,455,818) |
|
(20,892,943) |
|
(13,746,193) |
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes |
|
1,212,110 |
|
(44,868,750) |
|
30,776,671 |
|
61,385,520 |
|
|
|
|
|
|
|
|
|
Gain/loss on net monetary position of cash and cash equivalents |
|
(207,642,509) |
|
(179,332,543) |
|
(141,418,084) |
|
(210,241,457) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash used in during the year |
|
(129,028,523) |
|
(21,914,728) |
|
(178,250,208) |
|
15,224,972 |
|
-218- |
|
COMPARATIVE STATISTICAL DATA |
WITH PREVIOUS FISCAL YEARS |
(variation of balances over the previous fiscal year) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.31.22 /
12.31.21 |
|
12.31.21 /
12.31.20 |
|
12.31.20 /
12.31.19 |
|
|
|
|
|
|
|
Total loans |
|
-2.88% |
|
-10.10% |
|
5.08% |
|
|
|
|
|
|
|
Total deposits |
|
-4.78% |
|
5.49% |
|
11.15% |
|
|
|
|
|
|
|
Income/(loss) |
|
40.54% |
|
27.11% |
|
-44.03% |
|
|
|
|
|
|
|
Shareholders' Equity |
15.51% |
|
3.83% |
|
0.47% |
COMPARATIVE RATIOS |
WITH PREVIOUS FISCAL YEARS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.31.22 |
|
12.31.21 |
|
12.31.20 |
|
12.31.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Solvency (a) |
|
22.97% |
|
18.74% |
|
17.76% |
|
20.19% |
|
|
|
|
|
|
|
|
|
Liquidity (b) |
|
77.31% |
|
76.37% |
|
67.45% |
|
69.89% |
|
|
|
|
|
|
|
|
|
Tied-up capital (c) |
|
34.45% |
|
35.69% |
|
36.08% |
|
37.82% |
|
|
|
|
|
|
|
|
|
Indebtedness (d) |
|
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 and other debt securities/deposits.
(c) Sum of property and equipment, miscellaneous assets
and intangible assets/Shareholders’ Equity.
(d) Total liabilities/Shareholders’ Equity.
Information not covered by the Auditors Report on
the review of the consolidated financial statements.
INDEPENDENT AUDITORS' REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
To the Directors of
BANCO BBVA ARGENTINA S.A.
CUIT (Argentine taxpayer identification number): 30-50000319-3
Registered address: Av. Córdoba 111
City of Buenos Aires, Argentina
| I. | Report on financial statements |
Introduction
| 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, 2022; (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) a summary of significant accounting policies
and other explanatory information included in the notes and exhibits that supplement them. |
Responsibility of the Bank’s Management and Board of Directors
in connection with the financial statements
| 2. | The Bank’s Management and Board of
Directors are responsible for the fair preparation and presentation of the financial statements mentioned in paragraph 1 in conformity
with the financial reporting framework set forth by the Central Bank of Argentina (BCRA) which, as indicated in Note 2 to the financial
statements mentioned in paragraph 1, is based on IFRS (International Financial Reporting Standards), as issued by the IASB (International
Accounting Standards Board) and adopted by the FACPCE (Argentine Federation of Professional Councils in Economic Sciences), including
the exceptions established by the BCRA explained in such note. The Bank’s Board and Management are also responsible for the internal
control they may deem necessary for the financial statements to be prepared free of material misstatements, whether due to errors or irregularities. |
|
-2- |
|
Auditor’s responsibilities
| 3. | Our responsibility is to express an opinion
on the financial statements mentioned in paragraph 1 based on our audit. We have performed our work in accordance with the auditing standard
established by FACPCE Technical Resolution No. 37 and with the “Minimum standards on external audits” issued by the BCRA.
Such standards require that auditors comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance
on the inexistence of material misstatements in the financial statements. |
An audit comprises the application of procedures to
obtain judgmental evidence regarding figures and information disclosed in financial statements. The procedures selected depend on the
auditor's professional judgment, including the assessment of the risks of material misstatements of the financial statements, whether
due to errors or irregularities. In making this risk assessments, the auditor considers the Bank’s internal control relevant to
the preparation and fair presentation of the financial statements 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. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Bank’s Board of Directors
and Management, as well as evaluating the overall financial statement presentation.
We believe that the judgmental evidence we have obtained
is enough and appropriate for our audit opinion.
| 4. | In our opinion, the financial statements
mentioned in paragraph 1 fairly present, in all material respects, the financial condition of BANCO BBVA ARGENTINA S.A. and its subsidiaries
as of December 31, 2022, as well as the results of its operations, changes in shareholders’ equity and cash flows for the fiscal
year then ended, in accordance with the financial reporting framework set forth by the BCRA and referred to in paragraph 2. |
Emphasis on certain matters disclosed in
the financial statements
| 5. | We would like to draw attention to the information
contained in the following notes to the consolidated financial statements mentioned in paragraph 1: |
| a) | Note 2. “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. |
|
-3- |
|
| b) | Note 2. “Basis for the preparation
of these Financial Statements and applicable accounting standards – Applicable Accounting Standards”, in relation to the measurement
of the remaining investment in Prisma Medios de Pago S.A. where the Bank discloses that (i) as of December 31, 2021, to measure the fair
value of a specific equity instrument it applied the requirements issued by the BCRA through the memorandum dated April 29, 2019, and
March 22, 2021, and (ii) given that in March 2022 the shares related to the abovementioned interest were transferred, the proceeds from
the sale thereof were booked under the net income for the current fiscal year, and this recognition method differs from the one that should
have been afforded under IFRS. |
| c) | Note 2. “Basis for the preparation
of these Financial Statements and applicable accounting standards – Applicable Accounting Standards”, in relation to Memorandum
No. 6/2017 on reassessment of income tax whereby the Bank discloses that (i) for the purposes of measuring income tax liabilities it had
applied the requirements established by BCRA Memorandum dated May 29, 2017 and (ii) due to the situation occurred in fiscal 2021 the accrual
was fully reversed as of June 30, 2021, and the effects were booked under the net income for 2021; this recognition method differs from
that which should have been applied under IFRS, since according to the latter, the effect should have been recognized in previous years. |
These issues do not change the opinion stated in paragraph
4, but they should be taken into account by the users of IFRS for interpreting the accompanying financial statements mentioned in the
paragraph 1.
| 6. | As further explained in Note 54 to the consolidated
financial statements mentioned in paragraph 1, certain accounting practices used by the Bank to prepare the accompanying financial statements
conform with the financial reporting framework set forth by the BCRA but may not conform with the accounting principles generally accepted
in other countries. |
Other matters
| 7. | The Bank’s financial statements for
the fiscal year ended December 31, 2021 were not audited by us but by other auditors, who on March 3, 2022, expressed an unqualified opinion
with respect to the accounting standards set forth by the BCRA on said financial statements. |
|
-4- |
|
| 8. | We also issued a separate 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. |
| II. | Report on other legal and regulatory requirements |
In compliance with current regulations, we further report
that:
| a) | The consolidated 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 accordance with the applicable Argentine Business Associations Law provisions
and the rules of the Argentine Securities Commission (“CNV”). |
| b) | The separate financial
statements of BANCO BBVA ARGENTINA S.A. as of December 31, 2022 are being transcribed to the Book of Balance Sheets for Publication 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. |
| c) | As of December 31,
2022, liabilities accrued in employee and employer contributions to the Integrated Pension Fund System, as recorded in the Bank’s
accounting books, amounted to ARS 851,459,376 none of which was due and payable as of that date. |
| d) | The information included
in the “Consolidated Balance Sheet Structure”, the “Consolidated Statement of Income Structure” and the “Consolidated
Cash Flow Structure” of the Reporting Summary for the Fiscal Year ended December 31, 2022 filed by the Bank jointly with the financial
statements to comply with CNV (Argentine Securities Commission) regulations, arises from the Bank’s accompanying consolidated financial
statements as of December 31, 2022 and 2021, and as of December 31, 2020, and 2019, which are not included as exhibits. In addition, we
report that the consolidated financial statements as of December 31, 2021, 2020, and 2019, to which we refer, which should be read jointly
with this report, were audited by other auditors who issued their review reports on March 3, 2022, March 9, 2021, and February 18, 2020,
respectively. |
The figures of the comparative information have been
restated to consider the changes in the currency general purchasing power and are thus stated in the constant currency as of the end of
the reporting year.
|
-5- |
|
| e) | As of December 31,
2022, as.stated in Note 47 to the accompanying consolidated financial statements, the Bank carries shareholders’ equity and a contra
account to eligible assets that exceed the minimum amounts required by relevant CNV regulations for these items. |
| f) | During the fiscal
year ended December 31, 2022, we have invoiced fees for audit services rendered to BANCO BBVA ARGENTINA S.A., accounting for 100% of the
total amount invoiced to the Bank for all services, 65.3% of the total audit services invoiced to the Bank and associates and 65.3% of
the total invoiced to the Bank and associates for all services. |
City of Buenos Aires
March 6, 2023
PISTRELLI, HENRY MARTIN Y ASOCIADOS S.R.L. |
|
JAVIER J. HUICI |
Partner |
Certified Public Accountant (U.B.A.) |
|
INDEPENDENT AUDITORS´ REPORT ON THE SEPARATE FINANCIAL
STATEMENTS
To the Directors of
BANCO BBVA ARGENTINA S.A.
CUIT (Argentine taxpayer identification number): 30-50000319-3
Registered address: Av. Córdoba 111
City of Buenos Aires, Argentina
| III. | Report on financial statements |
Introduction
| 1. | We have audited the accompanying separate
financial statements of BANCO BBVA ARGENTINA S.A. (the “Bank”), which comprise: (a) the separate statement of financial position
as of December 31, 2022; (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) a summary of significant accounting policies and other explanatory information
included in the notes and exhibits that supplement them. |
Responsibility of the Bank’s Management and Board of Directors
in connection with the financial statements
| 2. | The Bank’s Management and Board of
Directors are responsible for the fair preparation and presentation of the financial statements mentioned in paragraph 1 in conformity
with the financial reporting framework set forth by the Central Bank of Argentina (BCRA) which, as indicated in Note 2 to the financial
statements mentioned in paragraph 1, is based on IFRS (International Financial Reporting Standards), as issued by the IASB (International
Accounting Standards Board) and adopted by the FACPCE (Argentine Federation of Professional Councils in Economic Sciences), including
the exceptions established by the BCRA explained in such note. The Bank’s Board and Management are also responsible for the internal
control they may deem necessary for the financial statements to be prepared free of material misstatements, whether due to errors or irregularities. |
Auditor’s responsibilities
| 3. | Our responsibility is to express an opinion
on the financial statements mentioned in paragraph 1 based on our audit. We have performed our work in accordance with the auditing standard
established by FACPCE Technical Resolution No. 37 and with the “Minimum standards on external audits” issued by the BCRA.
Such standards require that auditors comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance
on the inexistence of material misstatements in the financial statements. |
An audit comprises the application of procedures to
obtain judgmental evidence regarding figures and information disclosed in financial statements. The procedures selected depend on the
auditor's professional judgment, including the assessment of the risks of material misstatements of the financial statements, whether
due to errors or irregularities. In making this risk assessments, the auditor considers the Bank’s internal control relevant to
the preparation and fair presentation of the financial statements 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. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Bank’s Board of Directors
and Management, as well as evaluating the overall financial statement presentation.
We believe that the judgmental evidence we have obtained
is enough and appropriate for our audit opinion.
| 4. | In our opinion, the financial statements
mentioned in paragraph 1 fairly present, in all material respects, the financial condition of BANCO BBVA ARGENTINA S.A. as of December
31, 2022, as well as the results of its operations, changes in shareholders’ equity and cash flows for the fiscal year then ended,
in accordance with the financial reporting framework set forth by the BCRA and referred to in paragraph 2. |
Emphasis on certain matters disclosed in
the financial statements
| 5. | We would like to draw attention to the information
contained in the following notes to the financial statements mentioned in paragraph 1: |
| a) | Note 2. “Basis for the preparation
of these Financial Statements and 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. |
| b) | Note 2. “Basis for the preparation
of these Financial Statements and applicable accounting standards” , in relation to the measurement of the remaining investment
in Prisma Medios de Pago S.A. where the Bank discloses that (i) as of December 31, 2021, to measure the fair value of a specific equity
instrument it applied the requirements issued by the BCRA through the memorandum dated April 29, 2019, and March 22, 2021, and (ii) given
that in March 2022 the shares related to the abovementioned interest were transferred, the proceeds from the sale thereof were booked
under the net income for the current fiscal year, and this recognition method differs from the one that should have been afforded under
IFRS. |
| c) | Note 2. “Basis for the preparation
of these Financial Statements and applicable accounting standards” , in relation to Memorandum No. 6/2017 on reassessment of income
tax whereby the Bank discloses that (i) for the purposes of measuring income tax liabilities it had applied the requirements established
by BCRA Memorandum dated May 29, 2017 and (ii) due to the situation occurred in fiscal 2021 the accrual was fully reversed as of June
30, 2021, and the effects were booked under the net income for 2021; this recognition method differs from that which should have been
applied under IFRS, since according to the latter, the effect should have been recognized in previous years. |
These issues do not change the opinion stated in paragraph
4, but they should be taken into account by the users of IFRS for interpreting the accompanying financial statements mentioned in the
paragraph 1.
| 6. | As further explained in Note 43 to the separate
financial statements mentioned in paragraph 1, certain accounting practices used by the Bank to prepare the accompanying financial statements
conform with the financial reporting framework set forth by the BCRA but may not conform with the accounting principles generally accepted
in other countries. |
Other matters
| 7. | The Bank’s financial statements for
the fiscal year ended December 31, 2021 were not audited by us but by other auditors, who on March 3, 2022, expressed an unqualified opinion
with respect to the accounting standards set forth by the BCRA on said financial statements. |
| 8. | We also issued a separate report on the consolidated
financial statements of BANCO BBVA ARGENTINA S.A. and its subsidiaries as of the same date and for the same period indicated in paragraph
1. |
| IV. | Report on other legal and regulatory requirements |
In compliance with current regulations, we further report
that:
| a) | In our opinion, the
consolidated financial statements mentioned in paragraph 1 have been prepared, in all material respects, in accordance with the applicable
Argentine Business Associations Law provisions and the rules of the Argentine Securities Commission (“CNV”). |
| b) | The separate financial
statements mentioned in paragraph 1 are being transcribed to the Book of Balance Sheets for Publication 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. |
| c) | As of December 31,
2022, liabilities accrued in employee and employer contributions to the Integrated Pension Fund System, as recorded in the Bank’s
accounting books, amounted to ARS 851,459,376 none of which was due and payable as of that date. |
| d) | As of December 31,
2022, as.stated in Note 47 to the accompanying consolidated financial statements, the Bank carries shareholders’ equity and a contra
account to eligible assets that exceed the minimum amounts required by relevant CNV regulations for these items. |
| e) | During the fiscal
year ended December 31, 2022, we have invoiced fees for audit services rendered to BANCO BBVA ARGENTINA S.A., accounting for 100% of the
total amount invoiced to the Bank for all services, 65.3% of the total audit services invoiced to the Bank and associates and 65.3% of
the total invoiced to the Bank and associates for all services. |
City of Buenos Aires
March 6, 2023
PISTRELLI, HENRY MARTIN Y ASOCIADOS S.R.L. |
|
JAVIER J. HUICI |
Partner |
Certified Public Accountant (U.B.A.) |
|
SUPERVISORY COMMITTEE'S REPORT
To the Shareholders of
BANCO BBVA ARGENTINA S.A.
Registered Office: Av. Córdoba 111
City of Buenos Aires
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 29, 2022, and in compliance with the terms of Section 294 of the Argentine Companies Law No.
19550, we have reviewed the consolidated statement of financial position as of December 31, 2022, the related consolidated statements
of income, other comprehensive income, changes in shareholders' equity and cash flows for the year then ended, and certain exhibits and
notes thereto, as well as the separate financial statements, which include the separate statement of financial position as of December
31, 2022, the statements of income, other comprehensive income, changes in shareholders' equity and cash flows, and certain exhibits and
notes thereto.
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
i.Financial statements for the fiscal year
ended on December 31, 2022, presented on a comparative basis.
ii.Consolidated Statement of Financial Position.
iii.Consolidated Statement of Income.
iv.Consolidated Statement of Other Comprehensive
Income
v.Consolidated Statement of Changes in Shareholders'
Equity.
vi.Consolidated Statement of Cash Flows.
vii.Notes.
viii.Exhibits.
ix.Separate Statement of Financial Position.
x.Separate Statement of Income.
xi.Separate Statement of Other Comprehensive
Income.
xii.Separate Statement of Changes in Shareholders'
Equity.
xiii.Separate Statement of Cash Flows.
xiv.Notes.
xv.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 3, 2022 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.
EMPHASIS OF MATTER
In Note 2. “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.
In Note 2. “Basis for the preparation of these Financial
Statements and applicable accounting standards – Applicable Accounting Standards”, where the Bank discloses that (i) as of
December 31, 2021, to measure the fair value of a specific equity instrument it applied the requirements issued by the BCRA through the
memorandum dated April 29, 2019, and March 22, 2021, and (ii) given that in March 2022 the shares related to the abovementioned interest
were transferred, the proceeds from the sale thereof were booked under the net income for the current fiscal year, and this recognition
method differs from the one that should have been afforded under IFRS.
In Note 2. “Basis for the preparation of these Financial
Statements and applicable accounting standards – Applicable Accounting Standards”, whereby the Bank discloses that (i) for
the purposes of measuring income tax liabilities it had applied the requirements established by BCRA Memorandum dated May 29, 2017 and
(ii) due to the situation occurred in fiscal 2021 the accrual was fully reversed as of June 30, 2021, and the effects were booked under
the net income for 2021; this recognition method differs from that which should have been applied under IFRS, since according
to the latter, the effect should have been recognized in previous years.
Other matters
The Entity’s financial statements for the fiscal year
ended December 31, 2021 were not audited by the current auditors but by other auditors, who on March 3, 2022, expressed an unqualified
opinion with respect to the accounting standards set forth by the BCRA on said financial statements..
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.
IV OPINION
We have examined the Entity's financial statements as of December
31, 2022 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, 2022, 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.
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 compliance with performance bonds
required of directors and they with 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 6, 2023
GONZALO VIDAL DEVOTO |
LAWYER
C.P.A.C.F. Volume 97 – Page 910 |
On behalf of the Supervisory Committee |
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