Banco BBVA Argentina S.A. reported its third‑quarter 2025 results on November 25, 2025, with earnings per share of $0.5049 versus a consensus estimate of $0.60, a miss of 15.9%. Revenue reached $1.21 billion, up 4.5% from the $1.16 billion reported in Q2 2025, but still below the $1.29 billion consensus estimate, reflecting a 6.5% shortfall in the bank’s core lending and fee income.
The EPS miss was driven by a sharp decline in inflation‑adjusted net income, which fell 39.7% from Q2 2025 and 70.9% from Q3 2024. Net interest margin (NIM) contracted to 16.7% from 19.1% in the prior quarter, largely because local‑currency interest income was eroded by higher inflation‑adjusted rates and a weaker domestic economy. The bank’s cost base rose modestly, pushing the efficiency ratio to 57.6% from 56.5% and compressing profitability.
Despite the earnings miss, loan and deposit growth remained robust. Private‑sector financing increased 6.7% in real terms from Q2 2025 and 76.7% from Q3 2024, while total deposits grew 11.2% in real terms and 36.6% year‑over‑year. Market‑share gains were evident: private‑sector loan share rose to 11.39%, up 81 basis points YoY, and private‑deposit share climbed to 10.09%, up 44 basis points QoQ and 156 basis points YoY, marking the first time the bank achieved a two‑digit deposit share.
Margin and return metrics reflected the challenging environment. Return on equity fell to 4.7% from 7.6% in Q2 2025, and return on assets slipped to 0.7% from 1.2%. The decline in local‑currency NIM was offset by a 1.7 percentage‑point improvement in the USD NIM, which rose to 7.1% from 5.4%. Management attributed the local‑currency pressure to higher inflation‑adjusted rates and a weaker peso, while the USD NIM gain was driven by a stronger dollar and higher foreign‑currency interest income.
Management guided for continued growth, projecting private‑sector loan expansion of 45‑50% and deposit growth of 30‑35% in real terms for the remainder of 2025. The bank also expects improvements in non‑performing loans and cost of risk in 2026, signaling confidence in its risk‑management framework and the resilience of its core business. No changes to full‑year guidance were announced, but the outlook reflects a cautious optimism amid a volatile macro environment.
Investors responded positively to the results, focusing on the bank’s strong loan and deposit growth, market‑share gains, and a forward‑looking outlook that emphasizes digital transformation and cost discipline. The EPS miss was viewed as a short‑term effect of macro‑headwinds rather than a fundamental shift in the bank’s profitability trajectory.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.