BBVA Argentina, the Argentine subsidiary of the global BBVA Group, released its consolidated financial results for the third quarter of 2025 on November 25, 2025. The bank has been presenting inflation‑adjusted figures since January 1, 2020, in line with IAS 29, and the latest data reflect the cumulative effect of inflation adjustments through September 30, 2025.
Inflation‑adjusted net income for the quarter dropped to $38.1 billion, a 39.7% decline from the $63.2 billion reported in Q2 2025 and a 70.9% decline from the $122.4 billion recorded in Q3 2024. Earnings per share fell to $0.5049, missing the consensus estimate of $0.60 by 15.9%. The miss is largely attributable to a sharp contraction in the bank’s net interest margin (NIM) and a surge in interest expense on time deposits, which grew 65.2% QoQ and outpaced loan interest income growth.
Total revenue for the quarter reached $512.4 million, down 4.1% from $535.5 million in Q2 2025. The decline was driven by a 12% drop in fee income from retail banking services, offset only partially by a 3% increase in loan interest income. The NIM compressed to 16.7% from 19.1% in the prior quarter, reflecting higher funding costs and a modest decline in loan pricing power. In local currency terms, the NIM fell from 21.7% to 18.7%, underscoring the impact of the central bank’s rate hikes on the bank’s profitability.
Despite the earnings shortfall, BBVA Argentina’s core balance‑sheet metrics strengthened. Consolidated financing to the private sector grew 6.7% in real terms versus Q2 2025 and 76.7% year‑over‑year, while total deposits increased 11.2% in real terms and 36.6% year‑over‑year. The bank’s market share in private‑sector loans rose to 12.4%, up from 11.8% in Q2 2025, indicating resilience in its loan portfolio even amid macro‑economic headwinds.
During the earnings call, CFO Carmen Morillo Arroyo emphasized confidence in the bank’s growth trajectory, stating, “2026 will be better than this year, maybe not at a sustainable pace, but the trend should go upwards.” Investor‑relations manager Belén Fourcade highlighted operational efficiency, noting that the bank “maintained a focus on operational efficiency through careful administration of fees and strict control of expenses.” The management team reiterated guidance for loan growth of 45‑50% and deposit growth of 30‑35% in real terms for the coming year.
The bank faces significant headwinds from persistently high inflation and political uncertainty, which have pressured margins and increased the cost of funding. The central bank’s rate hikes have further compressed the NIM, while the elimination of the LEFI framework in July 2025 has introduced additional liquidity uncertainty. Nevertheless, BBVA Argentina’s digital transformation strategy continues to drive new customer acquisition, and its strong capital position—projected to reach a 17% capital ratio by year‑end—provides a buffer against potential credit‑risk deterioration.
Looking ahead, BBVA Argentina maintains its 2026 guidance for loan and deposit growth and expects improvements in non‑performing loans and cost of risk. The bank’s management signals confidence in sustaining profitability through disciplined cost management and strategic investment in high‑return digital channels, while acknowledging the need to navigate the challenging macro‑environment.
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