Benzinga | Aug 25, 2020 04:55PM EDT

Banco BBVA Argentina S.A. Q2 Adj. Net Income $2.6B

2Q20 Highlights

* BBVA Argentina's inflation adjusted net income in 2Q20 was $2.6 billion, 21.9% lower than the $3.3 billion reported in the first quarter of 2020 (1Q20), and 70.1% lower than the $8.6 billion reported in the second quarter of 2019 (2Q19).

* In 2Q20, BBVA Argentina posted an inflation adjusted average return on assets (ROA) of 1.9% and an inflation adjusted average return on equity (ROE) of 10.9%.

* In terms of activity, total consolidated financing to the private sector in 2Q20 totaled $250.4 billion, increasing in real terms 5.4% or $12.8 billion compared to 1Q20, and contracting 5.0% or $13.3 billion compared to 2Q19. In the quarter, growth was driven by Other loans (mainly company loans or "Pr?stamos a Inter?s Vencido") and Discounted instruments, increasing 63.2% and 9.0% respectively. BBVA's consolidated market share of private sector loans was 8.54% as of 2Q20.

* Total deposits grew 8.0% in real terms during the quarter, and decreased 8.3% in the year. The Bank's consolidated market share of private deposits was 6.5% as of 2Q20.

* As of 2Q20, the non-performing loan ratio (NPL) reached 1.56%, with a 269.38% coverage ratio.

* The accumulated efficiency ratio in 2Q20 was 47.4%, remaining stable compared to 1Q20's 47.4%.

* As of 2Q20, BBVA Argentina reached a regulatory capital ratio of 21.9%, entailing a $53.2 billion or 167.6% excess over minimum regulatory requirement. Tier I ratio was 21.2%. Total liquid assets represented 63.8% of the Bank's total deposits as of 2Q20.